The Colorado statesman., 1922-01-14

much at a disadvantage I'm dealing with
other economic groups as the Jay farm
er Of the funny pages In the hands OF
sleek urban confidence men, who sell
him acreage in Central Park or the
Chicago city hall. The leaders OF the
farmers thoroughly understand this,
and they are intelligently striving to
integrate their industry so that II VIII
be on an equal footing with other busi-
nesses.
As an example OF integration, take
the steel industry, In which the model
Is the United States Steel Corporation,
with Its iron mines, Its coal mines, It's
lake and rail transportation, Its ocean
vessels, Its by-product coke ovens, It's
blast furnaces, its open hearth and
Bessemer furnaces Its rolling mills, Its
tube mills and other manufacturing
processes that are carried to the high
est degree OF finished production COM
patlble with the large trade 1t has
built up. All this is generally conced-
ed to be to the advantage OF the con-
sumer Nor does the steel corporation
inconsiderately dump its products on
the market. On the contrary, It so
influence, as is often the case with 9th
er large organizations. 1t Is master OF
Its distribution as we'll as OF Its pro-
duction. If prices are not satisfactory
the products are held back or produc-
tion is reduced or suspended. IT Is not
compelled to send years work TO the
market at one time and take whatever
IL can get under such circumstances
It has one selling policy and Its own
export department. Neither are the
grades and qualities OF steel determln-
ed at the caprice of the buyer, nor does
the latter hold the scales. In this SIN
gle integratIon OF the steel corporation
is represented about 40 per cent OF the
steel production OF America. The rest
is mostly in the hands OF few large
companies. In ordinary times the
steel corporation, by example, stabilizes
all steel prices. If this is permissible
Ut is even desirable, because stable
and fair prices are essential to solid
and continued prosperity why would
1t be wrong for the farmers to utilize
central agencies that would have simi-
lar effects on agricultural products?
! Something like that is what they are
aiming at.
Some farmers favored by regional
compaetness and contiguity, such as the
| citrus-fruit-ralsers Of California, al
/ ready have found a way legally to
merge and sell their products inte-
! orally and in accordance with seasonal
| and local demand, thus improving
their position and rendering the con
sumer a reliable service of ensured
| quality. certain supply, and reasonable
! and relatively steady prices. They
| have not found 1t necessary to resort
| to any special privilege, or to claim
| any exemption under the antitrust
! legislation Of the state or nation. With
out removing local control, they have
built up q very efficient marketing
agency. The grain, cotton, and to-
hacco farmers, and the producers of
hides and wool. because of their num-
bers and the vastness of their regions,
and for other reasons, have found
integration more difficult task
though there are now some thousands
of farmers cooperative elevators,
warehouses, creameries, and other en-
terprises of one sort and another with
turnover of billion dollers a year.
They are giving the farmers business
experience and training, and, so far
as they go, they meet the need OF
honest weighing and fair grading; but
| they do not meet the requirements of
nationally adjusted marketing In any
| large and fundamental way.
The next step, which will be pat
tern for other groups, is now being
| prepared by the grain-raisers through
! the establishment of sales media which
shall handle grain separately or col
| lectiyely. as the individual farmer may
elect. 1t is this step-the plan of the
| Committee of Seventeen-which has
created SO much opposition and is
thought by some to be in conflict with
the anti-trust laws. Though there Is
now before congress a measure de-
signed to clear up doubt on this point,
the grain-producers are not relying on
any immunity from antitrust legisla-
ton. They desire, and they are en-
titled, to coordinate their efforts just
az effectively as the large business In
terests of the country have done. In
connection with the selling organiZa-
tions the United States Grain Growers
Incorporated Is drafting a scheme of
financing instrumentalities and auxlli-
ary agencies which are Indispensable
to the successful utilization of modern
business methods.
1t is essential that the farmers
should proceed gradually with these
plans, and aim to avoid the error OF
scrapping the existing marketing ma
chinery, which has been so laboriously
built up by long experience, before
they have a tried and proved substi-
tute or supplementary mechanism.
They must be careful not to become
enmeshed in their own reforms and
lose the perspective of their place in
+bo National Rystem They must guard