The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1921-09-15

U. S. Grain Growers from doing the
farmer any real good. 1t will pile
one commission charge on top Of an
other, instead of shortening the road
from producer to consumer and thus
cheaponing the process of distribu-
ton.
"In effect, the PROPOSE contract
means that the U. S.. Gram Growers
Inc, would ask every grain producer
to give it $40, and it would then de-
vote its efforts to drumming up bust
ness for the Equity exchange and the
otherl ocal organizations, instead of
marketing the farmers grain by a
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
marketing system in the northwest
as follows:
"The proposed contract permits the
Equity exchange to carry on it's 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 a Compel
ing agency efficient service and salts
factory results, when their interests
may at times be conflicting.
"The proposed contract further
purports to give the U. S. Grain
Growers, Inc, an option to purchase
the properties of the Equity exchange
at an appraised valuation, after Aug.
l, 1923. This purported option is in
reality no option at all. 1t would be
null and void, unless majority of
the stockholders of the Equity ex-
change voted to sell, the U. S. Grain
Growers not only must pay the ac-
tual value of the properties, but in
addition must pay an allowance for
development costs of every nature
actually expended and whether paid
out of capital, earnings or surplus.
"The. U. S. Grain Growers, under
the. proposed contract, agrees to es-
tablish no other sales agency in the
entire northwest, unless farmers OBJ
ject to having their grain sold under
control Of the Equity rather than the
u. S. Grain Growers. If any grow
err or elevator objects to the Equity
as exclusive marketing agency, the
U. S. Grain Growers is obligated to
notify the Equity within 20 days, and
then to allow the Equity a reasonable
time in which to "induce such ship
pers or elevators towithdraw their
objections The U. S. Grain Grow
ers further contracts, to the full ex-
tent of it's ability to make every eff
fort to direct the shipment and mar
keting of all grain produced in the
second zone through the Equity ex-
change. The second zone includes
Minnesota, Montana, South Dakota
and Wisconsin.
"The Equity exchange, under the
proposed contract, may at any time
close it's facilities to the U. S. Grain
Growers in spite Of the fact that the
US. Grain Growers, is forbidden, by
contract, to establish any other sales
agency in this district. The Equity
is guaranteed the right to reserve for
it's own business all spaceit deems
necessary, and in the event that the
remaining space in inadequate to
care for grain shipped to the US.
Grain Growers by the farmers of the
northwest, the Equity is under no OBJ
legation to supply sufficient space"
The proposed contract. the farm
bureau directors declared, would es-
tablish, at the expense of the grain
producer, an organization to provide
more business for the Equity, rather
than to improve marketing conditions
or build up the U. S. Grain Growers
! Inc.