The New York herald., 1921-05-29
us. GRAIN GROWERS
FORM CORPORATION,
MARKET OWN CROPS
500, 100000 Body Organ
lied to Stabilize Prices and
Gust Middleman.
WILL ADJUST SUPPLIES
Bernard Nj. Baruch Will
Act as Financial Adviser
to Directors.
A COOPERATIVE SCHEME
Only Farmers Can Buy Stock
in Basic Body-Credit Es-
tablishment Promised.
COOPERATIVE SCHEME

| The day long visioned by the men
who produce the nations food, when
they should get together on national
scale and by marketing their own
crops should stabilize prices and as
sure for themselves a fairer proper
ton of the money the consumer pays
seems to be here.
The Farmers Finance Corporation
is to be incorporated in Delaware this
week. 1t is the financial auxiliary of
the already organized United States
Grain Growers, Inc. whose plan was
al proved at a national conference of
farmers in Chicago on April Z.
The Grain Growers, Inc, will attend
to the physical details of marketing
wheat and all other grains raised in
the United States. The Farmers FL
nance Corporation will make this pos
sible by arranging the necessary
credits and taking care of fiscal mat
ters. 1t will have 500, 10000 of pre-
ferred stock, to be sold to farmers at
e100 share. One Of it's greatest bene-
Ats, its sponsors expect, will be the
elimination of speculation in grain.
Baruch an Adviser.
Bernard NJ. Baruch. who was chair
man of the War Industries Board and
later technical representative of the
United States at the peace conference,
1,rf1 =,
nance Corporation.
The organization expects to handle
some Of this years grain crop and to
be in complete operation next year. It
will be prepared to handle every move
ment of the grain from the farming
community to the mill. 1t will work
with existing banking agencies. IT will
| not ask for special favors or legislation.
II believes that If the price of loaf
or bread is changed at all by the sys-
temization and farmer control of dis
trfbution II will be lowered. It's main
job will be to adjust the flow OF grain
to the demands of the market, az
against the present system of dumping
1t all or the market. regardless of de-
mand from seventy to ninety DAYS
AIleT the harvest. III the CouIct vi lirle
similar cooperative agencies may be
formed to market other food products.
including eggs and butter.
All that was made known yesterday
at the Biltmore, where several officers
and other leading spirits OF the United
States Grain Growers. Inc. talked with
newspaper reporters.
'Modernizing the grain business" one
of them called It
G. II. Gustafson of Lincoln. Neb.,
chairman of the Farmers Marketing
Committee of Seventeen, explained that
this committee, which devised the plan
of operation after studying for eight
months all kinds Of cooperative market
ing schemes, made Its report at a ma
tionaI ratification conference of farmers
organizations in Chicago on April s. and
that II was adopted on the following
day. He is now president of the United
States Grain Growers. Inc.
cit is he said. purely a cooperative
plan offered in competition with exist
ing unsatisfactory methods of market
ing. It differs from existing marketing
methods chiefly in that IL recognizes
capital only as n servant and only re-
munerates II for its service value and
returns to the producer the proceeds of
his toll in proportion of his patronage"
Outline of the Project.
The project was formally outlined yes
terday by Clifford Thorne of Chicago,
general counsel OF the organization. His
statement was indorsed by the other
members at the Biltmore.
Most of the principal farm organza-
/, tions of the United States" he said. re-
Gently united in organizing the United
States Grain Growers. Inc. for the pur-
pose OF establishing a grain cooperative
marketing agency that would eliminate
waste and uneoonomic methods now pro-
vaiiing in the marketing of our grain
In the past the farmer has mar
keted the bulk of his crops within three
months after the harvest He has
dumped his products on the market at
the very time when he Is selling the
most OF his products. Others have taken
advantage OF this situation and reaped
profits that the producers were entitled
70 and should have IL they only do for
themselves what others have been doing
for them
zone OF the principal causes or this
unsatisfactory system OF marketing our
crops has been the lack OF credit at the
crucial moment when il was most
needed We propose to create an aux
HAIRY company to be known as tho Farm
ers Finance Corporation. One hundred
million dollars OF non-voting preferred
stock will be issued the common stock,
voting but non-dlvidend paying. will be
held by tho United states Grain Grow
ers. Inc. II must be remembered that
only farmers can get membership in the
United States Grain Growers. Inc. That
will insure its control by the agricul-
turai interests of the country. We ex-
pect 70 sell the preferred stock 10 the
farmers themselves.
a.
Bernard NJ Baruch has consented TO act
In an advisory capacity for the Farmers
Finance Corporation. The papers will
be filed and the organization launched
next week.
I'VE are going TO supplement and In
no sense supplant existing financial ia
cilities. We desire 70 work through ex-
Continued on Fourth Page.