The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1921-07-08
100 MILLION
CORPORATION TO
MARKET GRAIN
Solicitation of Members in
United States Grain Grow
ers Under Way
TO HANDLE 1922 CROP
Each Member to Have Choice
of Five Ways of Disposing
of Grain
TO HANDLE 1922 CROP
BY AUSTIN p HAINES.

BY AUSTIN p HAINES.
Chicago, July S.-Solicitation OF
memberships in the United States
Grain Growers, Inc, the great farm
ers' organization which its officers ex-
pect to prove the greatest grain mar
keting agency in the country, has just
begun.
. The campaign for selling preferred
stock in it's subsidiary, the one hun
dred million dollar finance corpora
ton, is soon to be started.
The entire nineteenth floor Of the
Mallers building in Chicago has been
rented and the executive officers are
mailing out thousands of bundles Of
printed matter daily to farmers who
are seeking information.
The promoters insist that the propo-
sition is not an experiment, but is
merely following the lines which the
United Grain Growers of Canada have
found so successful. 1t is piece of
marketing machinery, without any
capital stock, to be operated without
profit, for the purpose of selling the
farmers grain and returning to them
the full market value, less handling
charges. 1t will operate where pos
sible through farmers cooperative
elevators, Of which there are nearly
5000 in the country, and through To-
cal associations of grain growers. The
cost of membership is an initiatory
fee of $40, without further dues.
Three Subsidiary Corporations.
The plans call for three subsidiary
corporations, one for financing grain
growers, one for warehousing and one
for exporting.
It is said that the finance corpora
ton, with its 100000,000 Of preferred
stock, will be the largest financial in
stitution in the United States, next to
the United States Steel Corporation
Its chief function will be to issue its
own obligations against warehouse re-
ceipts for grain which can then be
placed with banks or private investors
by the farmers, or any members CO.
operative elevator company can secure
from the finance corporation cash for
the full loan value of grain stored or
pooled with it.
The warehouse corporation will pro. .
vide terminal storage facilities for
grain by the purchase or erection of
warehouses at the great grain mar
keting centers.
The export corporation will seek to
increase Americas foreign trade by
setting up agencies in every corner Of
the world to expand and handle the
grain export trade Officers point out
that the United Grain Growers Of Can
ada exported wheat at from to 5
cents a bushel less than private ex.
porters charged, and it is believed that
American farmers can do as we'll.
Plan to Take Charge Of 1922 Wheat
Crop.
Sponsors of the United States Grain
Growers. Inc, hope that the Organiza-
ton will be sufficiently perfected to
handle the 1922 crop. They point out
that even if only half the existing far
mers' cooperative elevators were to
join the movement the organization
would handle more grain than is now
handled at the worlds greatest mar
ket in Chicago. They expect to con-
troll the marketing of at least half the
wheat crop to start with and within
a few years to prove the dominating
factor in the grain market.
Although officers deny that the new
organization is designed to upset ex
listing commercial institutions, to- Gre
ate monopoly or fix prices, it is al
ready apparent that there is conflict
pending between it and the established
grain exchanges of the country!
Recently the Chicago Board Of
Trade issued pamphlet attacking the
new undertaking, to which the United
Grain Growers Inc, replied in kind,
and it is evident that there is to be a
continual clash between the two with
the great possibility that one of the
two will be wrecked and sent to the
junk heap.
The farmers say that, while mem.
berships, on the boards OF trade are
open to anyone, co-Operatives are dis
criminated against.
Will Pay Capital Only.
c. H. Gustafson of Nebraska, presi-
dent of the United States Grain Grow.
ers, Inc, says: "Our plan differs from
existing marketing methods chiefly in
that it recognizes capital only as SER
want and remunerates it only for its
service value, and returns to the pro.
ducer the proceeds of his toll in pro-
portion to his patronage"
Officers deny that it's power will be
used to exploit the consumer. They
say that under efficient marketing and
distribution of farm crops the city man
will pay less for his food, while the
farmer receives more for his labor
and they point out that at present the
farmer does not receive more than
cents out of the S or 10 cents which q
loaf of bread costs, or more than
cents out of about IA cents for which
a quart of milk sells. Public opinion
if nothing else, would prevent their ex
ercising monopoly power to the detri
ment of the public, they say.
How Contract Operates.
Under the contract into which far
mer members will enter with the Unit
ed States Grain Growers, Inc, eacl
memter will have choice betwee!
five methods of disposing of his grain
as follows:
E1pCT. uo NAV coil oufriphf IN hi