The Glasgow courier. [volume] (Glasgow, Mont.) 1913-current, 1921-02-25

cidSc VI P.oloo. Liz SpIedu diIiouIlLS
to S.093.
"The widest spread between cooper
ative and homeopathic prices ap-
pears at points where there is no COM
petition. In some instances the vari-
ance is as much as 25 or 80 cents, and
in one case 40. cents. Where competi-
ton is active between the private ship
per and the cooperative organizations
the spread is much narrower. This in
Fdicates, in the opinion of the depart
ment, that the creation of the state
wide exchange has had the effect of
bringinu up the prices to the farmer at
competitive points. The benefit Of
such price increase, of course, goes all
to the farmers in the trade area.
Assuming an exportable group of
20, 900 900 bushels (12,00O,0 900 cwt.),
the spread of 5000 per cwt., indicates
that had all the potatoes of the state
been marketed around November l,
the cooperative price level would have
given the farmers S. 100000 more
than the homeopathic price.
"Since approximately one-fourth of
the potatoes are being marketed CO.
operatively through the exchange, me-
fourth of this amount, or $274, 900 may
be regarded as the direct saving to the
farmers through the use of co-opera-
tive marketing. This does not take
into consideration the general boosting
upward of prices, due to the competi-
ton between cooperative and non-co-
operative buyers. In this saving, not
anly the farmers using the exchange,
but all the farmers in the state bene-
fit"
Private dealers have been forced to
take narrower and narrower margins.
Officials Of the exchange estimate that
the exchange has put more than a
million dollars into the pockets of the
farmers through this general upward
boosting of prices.
"You know there are two theories
of cooperative enterprise" MI.
Hughes explained. Zone is that you
must control enough of the crop to
constitute a virtual monopoly and be
able practically to set a price. The
other theiry is that, as long as you
have a guaranteed quantity, whether
big or little, you will get the best price
the market can bring, and benefit not
only the farmers cooperating, but
their neighbors as well.
"Co-operative marketing is cutting
down local expenses in the potato in
dustry. But more than that, it is tend.
ing to stabilize prices. 1t is the same
in other lines of cooperative market
ing. When cooperative marketing has
developed sufficiently, you will have
this situation-the producer, with q
certain part of the years crop pledged
will go to the consumer and say, How
much will you give for the crop?'
producer and consumer will agree
on a price. Everything is working in
that direction. Cooperative organiza.
lions are springing up in the producing
end of the game to sell more effectively
and in the consuming end of the cycle
to buy more effectively. More anC
more we are coming to eliminate the
middleman. AS cooperative market,
ing develops, seasonal fluctuations il
prices will decrease. Temporary in
ability to get cars and like factors will
have less affect on markets. Buying
will be over longer periods and in big.
ger quantities.
Particularly in the potato industry
has the farmer been subject to the un,
certainties of a local market. The
Potato Exchange, placing right at thu
jump o%ne-fourth of the states crop il
the hands of a single selling organiza
ton, and opening up to the farmers
daily the markets of the entire coun,
try, already has done wonders TOWARD
stabilizing prices and getting for eacl
farmer the best that the seasons mar
ket Affords"
The Minnesota Potato Exchange il
entirely under producer ownership ane
control. Real "dirt" farmers, men VIII,
grow potatoes, are it's officers and di
rectors. Each grower pledges his crol
to the exchange. At present are dis
tributed through a private compan,
under contract. There is a growing
movement, however, to develop a big
national distributive organization
serving all the various co-operativ,
fruit and farm industries.
Each evening Aamodt wires over tn,
country the quantities of potatoes t,
+ shipped the next morning and asks TO
bids. To the best bidders he direct
the shipments, sending cars direc
from the local association to the reail
er or pobber making the purchase. Al
the potatoes are pooled by the grow
. ers. In other words, if one retaile
buys a car at a high figure, and othe
, cars must be sold at a lower figure
one grower gets no more than anothe,
Each gets the best the market afford
on that particular day. If there ar
profits above the nominal handlin,
charge. the farmers pet the dividends