Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-04-06
NO PROFIT IS
PLANNED FOR
; CORPORATION
Option in: Pooling is Given
Farmers in Proposed
Bylaws. ..
COMMISSION BASIS
WOULD BE THE RULE
All Members of Concern
Must be Bonahde Grain
Growers. W

Chicago. April 6.-Complcte
machinery by which farmers OF
the country may take over the
marketing of their grain on a
cooperative basis were laid. be.
fore national conference OF
grain growers hero today. The
plans were presented by the
committee of II. which has been
working On a national co-Opera-
tive grain handling system for
the last six months and which
called ;oday's meeting rs a rati-
fication conference.
Little Difference.
While the plans have been un-
der constant consideration, the
past few days and were given
their final touches only late last
night, they differ in no essential
detail from those previously
worked out by the committee, its
members stated.
Pressure from several quarters
for compulsory pooling of grain
did not succeed in winning en-
dorscmcnt The plan calls for
pooling ut option.
Curbing of speculation I'm grain
is set forth in the final report of
the committee US one of the
chief aims Of tho proposed plans.
Declaring that there was a
speculation in grain that almost
stagSers all human comprehcn-
siOn'' the committee said that in
its Judgment the ''only adequate
remedy" was for the farmers to
center extensively into the busi-
ness of grain distribution. m,,r-
chandiSing grain as the products
of other industries arc merchan-
disel.'' sr..-r-
~ Establishment OF a, c0frDration
knOWn as tlles United States Grain
p Growers Inc. is provided for. by
laws of the corporation are sub
mittcd and contracts binding
farmers who enroll, arc given in
today's meeting in the CDmmit-
tee report.
Details Of Plan.
Salient details of the contract fca
lures of the plan aro these:
There arc two contracts. the frs
running from the farmer to tho farm,
ers' cooperative elevator. Tho sec
agency.
The farmer signing the contra,
must sell his grain exclusively t,
these agencies for five years. renew
able thereafter from year to year.
There are two types of contract
farmer may make: He may adopt tn
regular sales method now followed
through which the farmer sells t
the elevator and the elevator sells &
the market These may be diret
sales or sales OH consignment. Til
second method provided for is poo
ing. Farmers of a community ador'
ing this plan may pool or farmers c
two or more communities may jol
in a pool of their grain.
Farmer Has Option.
The farmer has reserved absolut
option as to which Of the two col
tracts he may sign.
If either of the two optional met-
DDS in the contract prove unlawful
it is so stated that it will automatica
lv be stricken from the contract AT
the balance stands.
Other features of the plan rcuui,
that all members of the United Stat,
Grain Growers. Inc. must be a bone
tide grower OF grain.
The membership fee is set at 81
with no assessments.
The corporation proposed is nor
profit. non stock company, with r
dividends and to be operated on
cost basis.
Expenses after the membership ft
is paid are to be arrived at by dedu
tions from the sale of grain.
commission basis solely, the max
cent of the value of the grain, co
charges on exchanges, it is stated
members of the committee of II.
On other grain involving storat
and other marketing facilities. II
deduction for capital investme,
shall not exceed one per cent of II
value of the grain. For this dedu
ton certificates not interest hearir
are to be given. Funds so acquiY
are to be used to buy warehouses e
tablish crop news gathering agenci
in various counties, and other facil
ties needed.
Provision--is also made for csta blisl
ment of subsidiary corporations. il
cludtng an export corporation,
warehouse corportion, a corporate
to purchase seats on exchanges, ar
a finance corporation.
Wallace Makes Speech.
The department >of agricultu
should lend the same aid to farme
in marketing their crops as it does
their production Secretary Walla.
.declareds today in an address here b
fore the Farmers Grain Marketi,
Committee of Seventeen. A
There is just as much reason,
said, why the department shou
assist the farmer in developing met
DDS of marketing his crops eficien
ly as that it should assist him in i
creasing his production"
Study Of improved marketing met
ods'as well as OF conditions the farI
er should understand to produce i
telligently and adjust his products
to the needs Of consumption" q
secretary said, .'are proper functio
OF the department"
The department should turn 1
the light, he continued. .'If there Z
points along the. way at which ths
u unneceasary vaste. that should
made known, II there are men al0l
the way who. aFA taking too mu'
toll for the eors40e ther rondee. q
also nhould be - knoWn. A plen'
fsl supply q - ~ pf9eas which :
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