The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1921-03-03
Selling Debentures Secured By
Stored Grain Proposed By \
Committee of IL
WOULD SEEK SUPPORT
OF COUNTRY BANKERS
Local Shipping Association Is
Suggested as Basis of
Sales Corporation

St. Paul, March 3.-Development
of a billion dollar corporation, oper-
ated and controlled entirely by farm
ers, is one of the possibilities opened
I'D to the grain producers of the coun-
try by the report of the American
Farm Bureau federation's committee
Of II, just made public in detaiE
- William G. Eckhardt, treasurer Of
the committee Of IT,, in conference
with officers of the Minnesota Farm
Bureau federation, outlined the meth
cd by which the committee believes
the farmers can finance nation.
wide sales agency to market their
grain. Branch sales offices are to be
established in all important grain mar
kets, making use Of all existing farm
ers' cooperative organizations. In
connection with these sales offices
there must be government licensed
warehouses, where farmers grain can
be stored. The committee proposes
that warehouse receipts shall be is
sued and used as the basis for credit
to finance a great cooperative mar
keting agency outlined in a prelimi4-
airy report of the committee Of last
week. The warehouses, the Commit
tee recommended, shall be obtained
by lease, purchase or erection.
Plan Adopted Unanimously
"The United States department of
agriculture estimates the value of the
grain crops of the country at approx
mately 1895, 100000 year," Mr..
Eckhardt said. eve believe that ul-
timately this national cooperative
grain marketing organization can be
made so powerful that by issuing
debentures, secured by warehouse re-
ceipts, $1,O0O,00O,000 can be raised
to finance the distribution Of the
farmers grain. We believe the coun-
try bankers will be glad to take these
securities"
The committee Of II, representing
the principal farmers grain market
ing organizations, unanimously ap-
proved the new marketing plan.
It provides for the incorporation Of
a grain growers cooperative national
sales agency, on non-stock, nom
profit basis.
Grain growers will take perpetual
memberships in this organization.
w uSIctcI lOSoA CO"OpC1dClVc OlCNo~
tors or grain shipping organizations
exist, they will be made the basis Of
the nationwide sales agency.
Local Units Are Basis
Where there are no local co-opera-
tives, farmers will organize a local
grain growers association. Farmers
who become members Of the national
agency will sign contracts to sell all
their grain through their cooperative
organization for five years. The local
cooperative elevator or association
will make a similar contract with the "
national sales agency.
The local cooperative organization
is to be given full discretion as to
how it will market it's grain, under
the plan of the committee of ~. 1t
may sell on consignment, it may sell
direct to the national organization,
or its, members may form a pool on
the plan used by the grain men Of the
Pacific northwest. Farmer members
will have full rights to sell to local
mill or for local consumption. Only
actual producers are to be admitted.
Fairer Prices Sought
The object Of the plan is to give
all farmers in the United States sta
BILE market, fair price, and the same
price in all parts Of the country, adj
justed to the difference in freight and
grade.
Under the plan, the national sales
agency probably would advance to
the farmers, when they ship their
grain, rs per cent Of the price it
hopes to obtain; the rest Of the sales
price would be paid over to the ia m
er when the grain actually is sold.