The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1922-01-18

self sufficient and did not depend upon,
or care very much what the great
world was doing. The result is that
the agricultural group Is almost as
much at disadvantage in dealing with
! other economic groups as the jay farm
! er Of the funny pages in the hands of
sleek urban confidence men, who sell
Chicago city hall. The leaders Of the
/ farmers thoroughly understand this,
and they are intelligently striving to
integrate their industry so that it will
be on an equal footing with other busi-
nesses.
AS an example of migration. take
the steel industry, in which the model
is the United States Steel Corporation,
with its iron mines. its coal mines, its
lake and rail transportation, Its ocean
vessels Its by-product coke ovens, its
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.
patible with the large trade 1t has
built up. All this is generally conced-
ed to be to the advantage of the con-
sumner. Nor does the steel corporation
inconsfderately dump Its products on
the market. On the contrary, 1t so
acts that 1t Is frequently stabilizing
influence. as is often the case with 9TH
er large organizations. 1t is master Of
its distribution as we'll as Of it's pro-
duction. If prices are not satisfactory
the products are held back or produc-
ton is reduced or suspended. 1t Is not
compelled to send years work to the
market at one time and take whatever
1t can get under such circumstances.
! 1t has one selling policy and its own
export department. Neither are the
grades and qualities of steel determin-
ed at the caprice of The buyer, nor does
the latter hold the scales. In this sim
gle Indignation 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
tit 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 SINH
lar effects on agricultural products?
Something like that Is what they are
aiming at.
Some farmers favored by regional
compactness and contiguity, such as the
s-fruit-raisers 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-
sumner 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 a very efficient marketing
agency. The grain, cotton, and to-
bacco 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
Indignation more difficult task;
though there are now some thousands
of farmers cooperative elevators.
warehouses, creameries, and other en-
terprses of one sort and another, with
a 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 a 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
lectively, 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 antitrust laws. Though there Is
now before congress 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
as effectively as the large business In
terests of the country have done. In
connection with the selling organiza-
tons the United States Grain Growers
Incorporated Is drafting a scheme Of
financing instrumentalities and auxili
airy 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.
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