Evening star., 1924-06-21
HUGE GRAIN COMBINE
URGED FOR FARMERS
American Farm Bureau Receives
Offer That Would Give Control
of Firms and Elevators.
OFFICIALS FRIENDLY TO PLAN
Would Eventually BE Given Board
of Trade Trading Privileges.

BY the Associated Press
CHICAGO, June 21.-Grain farmers
would own. finance and control hve
large Chicago grain firms and 5000
cooperative elevators under a plan
which has been submitted to the ex-
ecutive committee of the American
farm bureau, which will shortly name
committee, headed by President y.
E. Bradfute. to study the scheme.
The plan includes the Armour Grain
Company, RoSenbaum Grain Corpora
ton, Bartlett, Frazier d Co, Rosen-
baum Bros. and j. c. Shaffer & Co:
handling more than a billion dollars
worth of cash grain transactions an
nually, according to estimates OF the
aggregate business of the last rev
years.
Purpose of Proposal.
The proposal contemplates turning
over 10 the farmers the firms forty
country elevators, terminal elevators.
offices and fixtures and all other me-
chanical equipment, along with man.
agerial facilities. The five firms in
volved control virtually the entire
terminal and much of the capacity in
other primary markets and export
bases. The elevators alone are esti-
mated at $4,000. 900 and other prop
crty at about $4,000. 600.
Cooperative grain marketing or
CARNATIONS eventually would be ac-
corded the trading privileges OF the
Chicago Board of Trade, under the
! proposal.
| Details of financing reaching to
hundreds of millions of dollars will
! be conSidered ed by the committee. The
| financing of the consolidation Is eX-
pected to be cared for with the funds
which ordinarily make the rebate"
to the producer under cooperative
marketing systems. These rebates"
might be diverted into sinking fund
for the amortization of the consolida-
| tion debentures, stocks and bonds, it
! was suggested, although the legal
and financial details of the plan were
not made public.
The formal announcement of the
plan, made by the farm bureau. said
the company contemplated would
| be at the service of the state CO.
operative pools. elevator exchanges,
| farmer elevators and individ
uals as a grain merchandising agency.
1T is understood that the tentative
! plan has been submitted to other
farm organizations" the announce
ment said
Farm bureau officials who have
been considering the plan for some
| time were reported as being friendly
toward the proposition. Grain opera
tors considered it with favor.
Plan Significant.
John c. Shaffer of the j. S. ShaffeI
& Co, said the plan was significant
as revelation of the attitude OF
those in the grain trade toward the
cooperative marketing effort of the
producers.
THE elevator and grain men are
| thus showing the farmers they are
willing to let the farmers have the
properties at an appraised valuation
them for given period until they
wish to take the whole manage
ment into their own hands," he said
THE American farmer has been
cropping in darkness. said John J
Stream, former president of the Chi
the cooperative idea. but has not had
the facilities to put it into execution
effectively. Now men who have de-
voted their lives to grain marketing,
and who control five of the largest
grain companies in the world, offer
to turn their properties over to the
American farmers and offer to de-
vote the next five years of their lives
to the project and then stand ready
to turn the entire properties over to
persons designated by the farmers To
conduct the business
If a final agreement is reached be-
tween the farmers and the five grain
companies it is predicted that it Will
take at least three months after that
to consummate the unified plan.
Such a merger would provide the
farmers with the most economical
system of handling grain, George r.
Saunders of the Armour Grain Com l.
pany said today.
.'The announcement in the morning
press-concerning the American Farm
Bureau Federation proposal to ac-
quire big Chicago grain handling
facilities-means, when the plan Is
consummated, that our farmers will
have the best and most economical
facilities possible for marketing their
grain" said Mr.. Saunders. And
Should it be necessary to pool wheat
in order to obtain fair price, which
apparently may have to be done. this
years short crop should make an
operation comparatively simple. /
view this as an important, construc-
tive factor in wheat values"
The committee to examine the pro-
posal for the huge merger, appointed
| by the Farm Bureau Federation. was
announced today as composed of the
following: O. L. Bradfute, president
| of the American Farm Bureau Fed
Grafton. chairman; S. H. Thompson
Quincy, Ills: Frank Evans. Salt Lake
City; G. F.. Reed, vice president of the
| federation. and NJ. D. Lincoln. CO.