Little Falls herald. [volume] (Little Falls, Morrison County, Minn.) 1889-1950, 1921-09-16

o0y0e1 Calls IOI al OI&du1ZdC1On equip
Eped ITO handle enough Of the grain Of
the United States through a single CO.
operative system, to- exart stabilizing
EFFECT on the market, to put grain on
tie market in an orderly manner, and
to prevent gluts and violent price
fluctuations. This purpose can be &C.
.complished only through one centralized
controlling sales agency. But the pro-
posed contract would make the Equity
local organization, the exclusive sell
ing and warehousing agency for ell
grain marketed comparatively in the
whole spring wheat district. We can
come to no other conclusion than that
the U. s. Grain Growers Inc, contemp-
lates signing similar contracts with the
several other cooperative selling or
CARNATIONS represented On the board of
directors of the national corporation.
''This will give the farmers of Amer.
lea four or more selling agencies, and
cannot do otherwise than place the
farmer back in the same position he
was before cooperative marketing at
the primary terminals was attempted.
It will prevent the U. s. Grain Growers
from doing the farmer any real good.
It will pile one commission charge on
top Of another, instead Of shortening
the road from producer to consumer and
{cheapening the process of distribution.
GIN effect, the proposed contract
means that the U. S. Grain Growers,
Inc, would ask every grain producer to
give it $40, and it would then devote
it's efforts to drumming up business for
the Equity exchange and other local
organizations, instead of marketing the
farmers grain on national scale
through one agency.
The farm bureau federation listed
other objections to establishment of
the Equity exchange as sole selling
agency of the cooperative grain mar
keting system in the northwest, as fol-
lows:
'The proposed contract permits the
Equity exchange to carry on its own
business at the same time it acts as
agent for the U. S. Grain Growers. We
do not believe that any marketing
agency can carry on it's own business
and at the same time give Compel
ing agency efficient service and salts
factory results, when their interests
may at times be conflicting.
"The proposed contract further pur-
ports to give the U. s. Grain Growers
Inc, an option to purchase the proper
ties of the Equity exchange at an ap-
praised valuation, after Aug. l, 1923.
This purported option is in reality no
option at all. It would be null and
void, unless a majority of the stock
holders of the Equity exchange voted
to sell. It is further provided in the
proposed contract that if the stock
holders Of the Equity voted to sell, the
U. 8. Grain Growers not only must pay
the actual value Of the properties, but
in addition must pay an allowance for
development costs Of every nature ac
tually expended and whether paid out
of capital, earnings or surplus.
t'The U. s. Grain Growers, under
the proposed contract, agrees to estab
lish no other sales agency in the, entire
northwest, unless farmers object to-
having their grain sold under control
of the Equity rather than the U. s.
Grain Growers. If any grower or ele-
vator objects to the Equity as exclu
sive marketing agency, the U. S. Grain
Growers is obligated to notify the
Equity within 20 days and then to al
low the Equity reasonable time' in
which t'to induce such shippers or ele-
vators to withdraw their objections. -
The u. s. Grain Growers further con-
tracts, ''to the full extent Of it's. abil-
ity," to make "every effort to direct
the shipment and marketing of all
grain produced in the second zone,'
through the Equity exchange. The
second zone includes Minnesota, Mon
tana, South Dakota and Wisconsin.
''The Equity exchange, under the
proposed contract, may at any time
close its facilities to the U. s. Grain
Growers, in spite Of the fact that the U.
S. Grain Growers, is forbidden, by the
contract, to establish any other sales
agency in this district. The Equity
is guaranteed the right to reserve for
it's own business all space it deems ne
cessary, and in the event that the re-
naming space is inadequate to care for
grain shipped to the U. s. Grain Grow
ers, by the farmers of the northwest,
the Equity is under no obligation to
supply sufficient space.'
The proposed contract, the farm
bureau directors declared, would estab-
fish, at the expense Of the grain pro-
Queer, an organization to, provide more
business for the Equity, rather than to
improve marketing conditions or build
up the U. S. Grain Growers, Inc.