The Raymer enterprise., 1923-09-27

Wheat Growers association, Mr..
Lampson explains why a bind
Ing contract is necessary and
discusses few other objections
often brought up by farmers.
A certain proportion Of farmers,
who apparently have signed every
thing that has come along since the
Declaration Of Independence, are
hesitant about signing contracts with
cooperative marketing organizations.
They have been 'stung before" they
explain.
Despite the fact that these co.
operative organizations have the
backing Of both the feleral and state
governments, and despite the fact
that the managers Of the associations
are heavily bonded, these farmers
side-step at the idea Of tying up
their wheat or beet production by
q contract.
They point out that service, rather
than contracts. should be the found
alton ON which cooperative asso-
ciation Is built. And as q second
point to back up their unwilling
ness to join with the majority, they
say that the contract interferes with
their American right Of liberty of
action.
There Is perhaps a grain of truth
In both these statements, but there
also Is another side to the question.
Pioneers in the cooperative mar
keting movement long ago discover
ed that contracts were an absolute
necessity. Cooperat0rs who didn't
cooperate did more damage to the
movement than any other cause. Her.
man Steen. In his new book on CO.
operative marketing. tells Of how the
bluegrass seed growers In Kentucky
formed a cooperative association in
l90S.
The season that the association
was formed. the buyers raised their
bids on the seed from so cents to
$l.l0. The growers had never got
ten that much before. They broke
out Of their organization and sold.
The dealers lost 20 cents q pound
on every pound they bought at $1.10.
but they gained in the long run.
Tho cooperative organization was
broken up, and the buyers paid what
they pleased again for the next IA
years.
This story, repeated over and over
again in communities where cooper.
atives were organized without bind
Ing contracts, has proven that the
contract Is necessary-as o protec-
tion against the outsider who is try
ing to smash the organization, tor
no other reason.
As for the American right Of lib
erty Of action that he signs away
when he Joins the cooperatives, there
Is nothing much that can be said.
A cooperative contract Is In itself a
little declaration OF independence.
It is a declaration OF independence
from the factors that have been auto
craticly debating what the farmer
should get without giving him the
slightest chance OF even vote in
the matter.
1T Is serious question whether
a grower has any liberty at all un-
der the ordinary system of market
Ing" says steen. Certainly he doesn't
have enough to be worth fighting
for"
The whole situation, economically
considered, reminds one OF the arith-
metic instructor who was explain
Ign compound interest. Suppose,
he said. that you had put 500 In
the bank at compound interest 20
years ago. What would you have
today?"
An exceptionally bright student
replied. You'd have almost enough
to buy the same things that your
original 500 would have bought 20
years ago"
i Where the growers are coming out
behind is that while they must pay
current prices for what they buy.
they are accepting for the things
they produce, the prices Of almost
20 years ago. Cooperative market
ing was designed to right just this
wrong.
NEXT WEEK: Why Cooper
ate At All?
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