The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1921-09-28
Grafton IS absolutely back Of the IL,

! statement says. The plan is sound.
! The FARM bureau will not rest until it
is put into successful operation. The
federation has been ready for four
months to organize the u IS. Grain
! Growers In Minnesota, in cooperation
i with other farm organizations, as
soon as practical arrangements could
be made for marketing the farmers
grain under control of the u. S. Grain
Growers, Inc. It is ready to. do so
i now as soon as notifications can be
made in the proposed contract, SO that
the individual farmers interests will
be properly protected. The objections
of the federation to the proposed con-
tract do not apply in any way to the
U. S. Grain Growers or the plan of the
Committee of Seventeen. We are
asking changes in the contract in the
interests of the grain producers.
''The plan of the Committee of Sew
enteen calls for an organization equip
ped to handle enough of the grain of
the United States through single
cooperative system, to exert stabi-
4 lizing effect on the market, to put
grain on the market in and orderly
manner, and to prevent gluts and vlo-
lent price fluctuations. This purpose
can be accomplished only through one
centralized, controlling sales agency.
But the proposed contract would make
/ the Equity, local organization, the
| exclusive selling and warehousing
agency for all grain marketed coop
eratively in the whole spring wheat
district. We can come to no other
conclusion than that the y. S. Grain
Growers, Inc, contemplates signing
similar contracts with the several 9TH
er cooperative selling organizations
represented on the board of directors
of the national corporation.
"This will give the farmers of AM
erica four or more selling agencies,
and cannot do otherwise than place
the farmer back in the same position
| he was before cooperative marketing
at the primary terminals was attempt
ed. 1t will prevent the U. S. Grain
Growers from doing the farmer any
real good. 1t will pile one commission
charge on top of another, instead of
shortening the road from producer to
consumer and cheapening the process
of distribution.
"In effect, the proposed contract
means that the u. S. Grain Growers,
Inc, would ask every grain producer
to give it $40, and it would then de-
vote it's efforts to drumming up bust
ness for the Equity exchange and
other local organizations, instead of ,
marketing the farmers grain on a !,
national scale through one agency"
The farm bureau federation listed
III toh lie
the Equity exchange as sole selling
agency of the cooperative grain mar
keting system in the northwest, as fol-
lows:
''The proposed contract permits the
Equity exchange to carry on its 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 its own business
and at the same time give compel
ing agency efficient service and salts |
factory results, when their interests
may at times be conflicting.
"Ihe proposed contract further pur-
ports to give the U. S. Grain Growers,
Inc, an option to purchase the pro-
perties of the Equity exchange at an
appraised valuation, after Aug. l.,
1923. This purported option is in
realty no option at all. 1t would be
null and void, unless majority OF the
stockholders of the Equity exchange
voted to sell. 1t is further provided
in the proposed contract that if the
stockholders of the Equity voted to
sell, the U. S. Grain Growers not only
must pay the actual value Of the pro-
perties, 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
establish no other sales agency in the
entire northwest, unless farmers OBJ
iect to having their grain sold under
control of the Equity rather than the
u. S. Grain Growers. It any growers
or elevator objects to the Equity as
exclusive marketing agency, the U. 5.
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 shippers
or elevators to withdraw their obJec- /
tions.' The U. S. Grain Growers fur
ther contracts, to the full extent OF its !
ability to make every effort to direct
the shipment and marketing of all
grain produced in the second zone,'
through the Equity exchange. The
second zone includes Minnesota, Mon
tana, 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
U. S. Grain Growers, is forbidden, by
the contract, to establish any other
sales agency in this district. The
Equity is guaranteed the right to re-
serve for it's own business all space
it deems necessary, and in the event
that the remaining space is Inadequate
to care for grain shipped to the U. S.
Grain Growers by the farmers Of the
northwest, the Equity is under no OBJ
legation to supply sufficient space"
The proposed contract, the farm
I H. ~ o~e Joo1orod would QStah- |