The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1921-08-30
EQUITY SIGNS
CONTRACT WITH
GRAIN GROWERS
to Become Integral
Part of New National
Body
ENDS LONG NEGOTIATIONS
Under Terms of Agreement
Equity Society Will Act as
Sales Agency
LONG NEGOTIATIONS

st. Paul. Mimi, Aug. 3O.-A con.
tract between the Equity Cooperative
Exchange OF St. Paul and the u. S.
Grain Growers, Inc, whereby the
Northwest's pioneer grain co-opera-
tive becomes an integral part of the
new national organization was execut-
ed here today.
This contract follows three months
OF negotiation and, according to farm
leaders, marks the first definite step
in actually establishing national
farmers selling agency on the ter
minal markets.
Under the terms of the agreement,
the Equity Cooperative Exchange
agrees to act as the sales agency for
U. S. Grain Growers, Inc, in the trade
territory of St. Paul, Minneapolis and
Duluth during the life Of the two-year
contract. Provision also is made for
a merger Of its affairs as a grain SELL
ing concern with the U. S. Grain
Growers, if such is approved by the
equity stockholders at such time as
the national company develops to the
point where it can acquire ownership
OF the Equity's physical terminal
facilities and continue its work ef-
ficiently and Independently.
Says It Is Significant.
"This agreement" said C. H. Gus
tafson, president of the U. S. Grain
Growers, Inc, in commenting on the
Of the contract marks
the passing of the first milestone in
the establishment of national, far
grain sales agency The.
fact that the Equity Exchange has
spent ten years in preparing the
ground in this territory has made ou:
organizations problem easy, so far as
the Northwest is concerned"
The contract, in designating the
Equity Cooperative Exchange as the
official sales agency of the U. S. Grain
Growers, Inc, in the Northwest, stiDu-
lates that in the event any grower OBJ
jects to the arrangement other ter
minal marketing machinery may be
utilized at the discretion of officers OF |
The u S. Grain Growers, Inc.
1t also provides that in the event |
he members and stockholders of the
Equity Cooperative Exchange do not
approve the merger, the merger at,
The end of the two-year contract peri.
od will not take place, this being a
question that will be submitted to the
of the Equity Co-opera-
i've Exchange at their annual meet
ing in January, 1924.
To place himself ina ,tpostion
where his crops will not be 9handled
by the Equity Cooperative Exchange,
! U. s. Grain Growers member must
give notice of such objection within
twenty days of the time he signs the
contract. The Equity company is
granted the right to present the merits
If its sales organization to such OBJ
iector in an effort to induce the ship
ment through it. .
The contract provides that ham
lling charges made against grain
,hall be divided between the two COM
panies on a sliding ratio, ranging
from one-quarter to the U. S. Grain
Growers and three-quarters to the
Equity at the time the contract be-
comes effective, to an equal division
after the volume Of business passes
the 25,OOO,00O bushel mark. This ar
will have little effect on
The grower in the final pay patronage
is charges in excess
Of the marketing costs are returned
TO the grower.
Near 25,OOO,OlO Mark.
That the 25,OOO0O0 bus,el mark will
be reached shortly is indicated by the
TACT that the Equity Company already
is handling more than 100000 ,
bushels annually and the U. S. Grain
Growers members in North Dakota
have signed contracts wuich represent
over 100000 bushels. OF course
some of this is duplicated but with
work well under way in
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