Webster City freeman. [volume] (Webster City, Hamilton County, Iowa) 1884-1946, 1922-02-20

100000. That is going some,' Mr..
President, in state where the farmers
and the producers Of foodstuffs are
toiling and producing their product at Il
loss. 9Fi!a
ION June 20. 1913, another stock
dividend was declared of % per cent.
Let us see how much cash dividend
they declared that year. They declared
a cash dividend in the same year OF
A. per cent. T am figuring that 40
per cent upon their original investment,
OF. the actual money they put i'll, 5000
600. That made the capital stock
million dollars.
"On May 1G 1921, that is to say, last
May, in the very year when every farm
er and every stoc> raiser had worked
all year at a. loss. when everything he
had produced and sold. he sold ut Il
loss. and as l said part of his cN-
lenses were contributions he had TO
make for oil and gasoline to the Stand
ard Oil Company. see what they dld.
While the farmer was toiling at loss
flew increased the capital stock OF that
company $3.OOO.O0O.
AS l said, they increased the CAPT
talization in 1921 to $3.O0O.O0O. Ihat
was a stock dividend Of 200 per cent.
and the same year they declared cash
dividend OF 30 per cent Oh the original
Investment of 100000"
In the course of the discussion II
was shown that the Sherman antitrust
law had failed in many instances to
prevent trusts from restraining trade
and both Senator Norris and Senator
Cummins advocated the enactment of a
lbill that would relieve the farmers
from the operation Of the antitrust
laws. holding that trusts generally were
violating it. and that it was unfair to
deny the farmers the right to combine
and increase prices. 1t is doubtful in
the minds of many if they can combine
and fix fair price upon their prod
ucts but Norris and Cummins both eX-
pressed the opinion that they should
not be subjected to the penalties of the
antitrust law if they could and did
| In the course of the discussion Sena-
tol Cummins made it clear that he was
in favor of congress going far to assist
tile farmers and after expressing the
opinion that the present depression VIII
pass in due time he said:
81 think combinations OF farmers
may be entered into for three general
purposes: First. in order to lessen the
cost of production. There are MANY
ways in which combinations may be
formed that will lessen the cost OF pro
lduction of whatever commodity the
farmer may be engaged in producing
/ think very worthy combinations may
! be entered into which will lessen the
cost of marketing: that is. bringing
| the commodity to the place at which
it is Sold and there certainly can be
no objection whatever to any COM
bination of that kind. There is not the
slightest reason to believe that any
combination to engage in lcssening the
cost of market ing-that is. in eliminate
ing the middle man--cOuld be found
antagonistic to or in conflict with the
antitrust law.
combinations may also be formed.
and | think, ought to he permitted,
having for their object the increase i'll
the market price of the commodity.
While that may be Objectionable III
some limited fields. recognizing, as |
do. that the market price of farm prod
ucts is generally below the cost Of pro-
duction do not object to combinations
that have for their specific purpose the
increase in the market value. so that
the commodities may be sold at Il fair
and reasonable profit to those who pro-
GUcc them,"