The herald and news. [volume] (Newberry S.C.) 1903-1937, 1922-01-27

much al disadvantage in dealing with
other ccon0mic gruHps as tie i;IE l.i.in-
er # the funny pages in the hands OF
sleek urban confidence men. who sell
him acreage IN Central Park or the
Chicago city hall. Tie leaders of the
farmers Thoroughly understand THIS.
and they are inteliigently striving 10
integrate their industry so that II "lI'
be on an equal footing with other bus!
neSSeS
AS an example of integration. take
the steel Industry. In which the mcdel
is the United States Steel Corporation.
with lis iron mines. lis coal mines. rs
lake amh rail transportation. It's ocean
vessels. lis by-prutuct coke ovens. lis
blast furnaces. its open EeaFIh ana
Besscmer furnaces. ils rolling mills. lis
tube mills and other m:tmnEH iuf.;i-
processes that are carried /" III" li-h'
est degree Of finished production com
ratibe with the large trade II has
hi.:lt up. All this is generally c"nced
81 70 he 20 the advantage OF the con
S.Aaer. Nor daes the steel corporation
inr, nSiderately dump its products on
Tie market. On the contrary, II so
act, HAT it is frequently a Stabi!iMns
innnrEce. as is often the case with ON
er large organizations. II is master OF
its distribution as well as OF lis pro
dnction. If prices are not satisfactory
the products are held back or pT0duc-
ton is reduced or suspended. II IS not
compelled to send II years work 10 inc
market at one time and take whatever
it can get under such circumstances
1t has one selling policy and its own
export department. Neither are the
grades and qualities Of steel detcrmln
ed at the caprice Of the buyer, nor does
the latter hold the scales. In this sin
Gle ntegration Of the steel corporation
is represented about 40 per cent or lie
steel production If America The rest
IS mostly in the hands of 4 few large
companies. In ordinary times the
steel corporation, by example. StahiliZes
all steel prices. If this is permissible
Gt is even desirable, because stable
and fair prices are essential TO solld
and continued prosperity why would
it 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
com2ac!ness and contiguity, such as the
cirrus .:t-raisers OF California, al
ready lave found way Legally to
ni,,:ge nnl sell their products !nIe'
era!!y -. in accordance with seasonal
alI Local demand, thus improving
their position and rendering the con-
sulner reliable service Of ensured
quality. certain supply, and reasonable
and relatively steady prices. They
have not found it 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 nun
| bers and the vaStneSS Of their regions
ard for other reasons, have found
| integration more difficult task
though there are nov some thousands
| of farmers cooperative elevators
warehouses. creameries, and other en-
terprses of one sort and another, with
a turnover of billion dOllers year
They are giving the farmers business
experience and training, and, so far
as they 20, 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.
lactively. as tie individual farmer may
elect. It 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
tie antitrust laws. Though there Is
now before congress 81 measure de-
signed to clear up doubt on this point,
! the grain1producers 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 orSaniZa-
tons the United States Grain Growers
Incorporated is drafting q scheme of
financing instrumentalities and auXiii-
ary agencies which are indispensable
TO the successful utilization IF modern
business methods.
IT is essential that the farmers
|hould proceed gradually with tkese
MANS. and aim to avoid the error Of
scraDning the existing marketing ma
chinery, which has been so laboriously
built Up by lcng experience. before
they have tried and proved suhsti-
tute or supplementary mechanism.
They must be careful not to become
pnmeShad in their own reforms and
nf fto,. r,luca ~,