Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-05-31
S10O,0OO,0OO GRAIN
EXPORTING CONCERN
FORMALLY STARTED

NEW YORK, May 29.-The great
est agricultural marketing organiza-
ton in the world was launched here
Saturday when plans were completed
for the Farmers Finance corpora
ton.
The corporation, which was formed
for the purpose of handling the coun-
try's grain crop on a cooperative
basis. will have a captilization of
800. 100000 and potential power of
at least 100000. Incorporation
papers will be filed in Wilmington,
Del, next week.
To Function at Once
According to officials. the corpo-
ration will begin to function i'm
mediately and may be able to handle
a portion of this years crops; The
principal objects of the organization
were described as follows; j.
grain.
Sterilization of grain prices, with
equal benefit to farmers and con-
| sumers.
Increased acreage, with consequent
greater production.
Abolition of unnecessary costs by
direct shipments and elimination OF
| middlemen'S profits.
If this experiment is successful,
it was stated, farmers organizations
throughout the country will apply
the same principle, to other agrlcul-
| tural products. The United States
Grain Growers, Incorporated, OF
which the Farmers Finance Corpo-
ration is a subsidiary, will form an
| other subsidiary to handle exports.
Committees similar to the one
which has just completed organlza-
ton of the finance corporation are
now at work on corporations to
handle livestock. fruit, milk and
dairy products, tobacco, poultry,
garden truck and cannery products.
will at once lease or build elevators
| in Chicago, Minneapolis, Omaha
Kansas City, Cleveland, New YORK
and Spokane or Settle and later in
Galveston and Fort Worth.
100000 Shares
c.. H. GustafSon, president of the
new organization, explained that the
finance corporation will have l,oOo,-
900 shares of non-voting stock with
par value of 500, which Will De
| sold only to grain growers. the vol
ing stock consists of but twenty-o one
held by the United Grain Growers
Incorporated, and will be voted by
the latters directors. BY this sys-
| TEN, the officials believe they VII,
be able to insure permanent control
! Of the finance corporation by bona
! uuS ldI lllSI
Additional funds will be raised, as
needed, through the sale of bonds tc
the public, with the enormous guam
titles of grain and the paid-in CAPT
tai as security. Through this means
the officials are confident they viii.
have a potential financial power OF
at least 1,000,000,000, and possibly
as high as $1,000, 100000 in the fu'
| ture. $3.50
Gustafson said that through the
! finance corporation grain COULD De
marketed in three Ways-by the lndl'
vidual sale system, whereby farmers
| sell direct to the elevators: by the
| consignment system, whereby they
| sell to the millers through the or
ganization, and by the pooling sys'
| tenn, whereby farmers in a commune
ty, county or state pool their grain
and sell over a period of months, TAX
ing an equal profit of each bushel
they have provided, at the expiration
AT present, 70 to rs per cent OF
the farmers grain is marketed within
ninety days after it is harvested
resulting in a Cutting of the market
with consequent loss to them and nc
benefit to the consumers" Gustafsor
| said.