Monte Vista journal and Monte Vista graphic-reporter., 1923-04-27
Explanation Of
Association Agreement and Marketing Contract

@. IL. Explain the Common
and Preferred stock features of
warehouse plan!
Ans. In order to purchase or
build q warehouse, money Is need
ed. This IL secured by the sale of
common and preferred stock. Com
mon stock can be sold only to mem
bers. II has all the voting power of
the corporation. Preferred stock
may be sold to anyone. II bears in
terest but has no voting power, and
is purchased within five years by
the Assn. ut the end OF which period
the warehouse is owned solely by
the members OF the Assn.
Q. l6. Can the Warehouse Cor
poration do anything against the
wishes Of the Association?
Ans. No!
Q. II. Why does paragraph 2
OF the Marketing Contract say the
association agrees to buy and the
grower agrees to sell and deliver +.
?"
Ans. A contract to be legal must
be mutually binding, therefore.
when the grower agrees to sell, the
Assns. must agree to buy. This
does not mean that the Assn. will
buy" In the sense OF speculatins.
Remember your Assn. operates with
out profit on = cost basis.
Q. Is. Why does the Contract
bind the signer for s years instead
OF for only 1 or years?
Ans. DO you know that among
the Danes where cooperation has
reached its highest development,
that In many organizations farmers
In Joining agree to market their
products thru their associations for
lille? In California the length OF the
term Of contract In some instances
is for 10 years. In most successful
Cooperative Marketing associations
In this country. long term con-
tract such rs five years. is in use.
Successful farmers associations have
therefore proved this to be neces-
sary. WHY? Because II leaves lit
tie chance for outsiders to break up
the Assn. by offering prices for po-
tatoes In excess OF what the market
will stand solely for the psarpOse Of
inducing membctu To break their
marketing contracts At the end of
the first year. On n five year basis
these inflated prices cannot be
used ns . means for breaking up
your Assn. Experience has shown
that this is the chief means employ
ed by outsiders to break up \ farm
erx' marketing Assn. Once the Assn
II broken up. prices return to their
previous level. Furthermore. u
five year contract In necessary to
enable farmers tor anyone) to set
up = successful organization to COM
pete with existing methods. DO you
want TO give your support. or con-
tract your crop. or go to the expense
OF organizing and employing ex-
perienced men. II the State Exchange
10 to he . short term" proposition!
Answer this for yourself.
Q. 10. Can the subscriber sign
part Of his potato crop or must he
sign all Of IL!
Ans. Answer this for yourself.
Would you Join an Assn. where the
members could contract only half of
his potatoes and then be permitted
to sell the other half on the outside
in competition with the Assn? How
far would your Exchange get In
bringing about Orderly Marketing II
half Of the potatoes Of Its members
were dumped" upon the markets.
"A house divided against itself can
not stand" It's all or none.
Q. 20. Can the grower reserve
from marketing thru the Assn. seed
for himself or to sell to his neigh
Dor. what he wants to feed to live
stock or to sell TO local customers
for local consumption?
Ans. Most certainly. Yes. d,
Q. 81. II the grower has Q crop
mortgage on his potatoes At the
present time. can he sign the con-
tract. and. II %. can he market the
potatoes thru the Aasn!
Ans. He can sign the contract
and the potatoes will 20 thru the
ASA. ualess the lien holder en-
forces his right TO possession.
q. -. Is the Assn. going TO
direct IT, members when to dig. etc?
Ans. No: except ~ digging may
naturally and without Inconvenience
or loss 10 the grower. b delayed in
order 10 bring about Orderly Mar
ksting. that h. prsvsat Flooding" Of
TIE market. wouldn't Il b better
10 delay diggiag somewhat II this
woul1 prevent gluttlag OF the mar
ket aad prevent . violent fall In the
Price Of potatoes? TIE answer 10 Of
oouree. Yes. Further the Assn.
Dould not - sxpsctsA 70 sccspt and
- responsible for immaturs or
'grsea" potatoes dug too early. This
Aas dsnoraiissd the early market
nearly every year.
q. ~. what b the object Of
gse. (a). IAN petatoss shall bs
oslivere1 q The earliest reasonable
line aftsf harvest % the ep1v Of
he Assn. ~ ~ sAipneats e direct
u ~ the AsseciatSonf"
Ans. "Ds3ivsrel q the order OF
Ne Assa. at EARLIEST roasoaabls time
l{tsr harvest" means 0 legal trans.
~ on written oSdoe - that the
Asa. vill knew ths Quaatity. grade
Ind variety q potatoes Il has so
for No ms0hsrs. Il A~"s
set mean aetsa1 o. pAysical trans.
|0R.