Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-08-05
FARMERS KEEP EYE !
ON GRAIN COMPANY
OPINIONS DIFFER
BY j. c. ROYLE
Especial Lea sed Wire TO The Journal.)
lCnnVright. 1921


NEW YORK, Aug. 1.-FarmersE
and grain men are watching close
ly the progress of the new Grain
Marketing company, of Chica go.
which has been formed around the
properties of five big grain COM
panies, the price to be paid for which
will be determined later. AS might.
be expected, farmers are divided as
to the advisability Of purchasing
stock in the concern, according to re-
liable reports from the middle west.
The company has been organized
under the Illinois cooperative mar
keting act with a capitalization of
$26, 100000, divided into one million
shares of common stock at 81 a
share, one million shares of class A
preferred stock at $25 a share, and
100000 shares of class B preferred
stock at $50 a share. The company
has started with a. paid-in working
capital of 100000 supplied through
the companies whose properties are}
to form the nucleus Of the concern.
AS explained by a. statement by1
the farm bureau federation. ut ID.
understood that the class B stock
will be sold for immediate financing
purposes. 1t is also understood thsol
IS per cent of the earnings of
new company above operating a
penses plus the income of the class
A stock will be used in retiring class
B stock. This means that with tho
sale of every two shares of class "A
preferred stock. one share of class
B stock will be retired. This pre-
vents the capital stock from ever be-
coming more than $40, 100000"
Purchasers Of stock must be pro-
ducers of grain and must pay fol.
at least one share of common at s1
and one share Of class A preferred
which bears per cent interest, at|
SIS. The organization, however, CAM
handle one-half of it's grain from|
non-stockholders or members.
The company says it provides al
complete marketing system forI
farme producers of grain, local CO |
operativ elevators and other or
CARNATIONS doing a cooperative
grain marketing business.
Some opponents Of the scheme say|
that the business of the five con-I
panies involved has not been par1
ticularly prosperous and that theyI
are worried over possible extension
of government regulation. Therefore !
the opponents continue, they are|
willing to turn over their properties
to a company with control CENTER
ing largely in their own hands and
with a farmer board. The critics as
sert that the plan is based less on|
cooperation than on stakeholder par1
ticipation, such as is being worked
out by the American Telephone and
Telegraph company and other public
utility corporations.
Grain growers of some OF fhe|
northwestern states. meeting at theI
call of the grain growers advisory
council, which former Governor
Lowden, of Illinois, represents, del
cided to urge farmers against buy1
ing stock and to oppose marketing
of grain with the proposed companyl
The stand was taken that the com1
pany is merely a. combination od
trade interests.
INCREASE IN BEET SUGAR
SAN FRANCISCO, Aug. IA 20
per cent increase in beet sugar toni
mage in California over last year ID
expected this year according, to
George E. Springer, secretary Of tho
Union Sugar company and Alameda
Sugar cOmpany With the states