, 1924-07-16

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the rice in the rough. They cleaned
and milled it and then sold it to whole.
sale dealers The old-time speculative
buyer and miller were eliminated. For
a few weeks things went along well
enough. The first rice sold over the
associations tables brought S1.30 per
bushel. Then came the smash in the
market. II dropped and kept on drop
ping-till offers were lowering around
an SJ-cent basis and there were few
offerings at that figure. The condition
continued. II began to grow worse.
1t didn't pay to sell rice in the
rough there were too many interme-
date fees. The farmers must take
over the mills and market their WI
rice in the clean. This was just the
situation that the organizers of the
marketing company had expected from
the beginning and they we're prepared
to meet ii. Although the association
had no mills or money, the milling
problem was easily solved. Tentative
contracts with several large rice mills
were made through which to mill the
rice of the cooperative members when
- ''St aiA nv VI ihiL ph "
sell the rice in the rough. The Wal
Finance corporation offered to LOAF the
rice growers 90 per cent of the market
value of the rice as it was delivered.
This money was to be used for the
first advance payments TO the grow
ers. The other payments were not to
he made until the LEANED rice was on
the market.
Made More Than Neighbors.
The rice farmers of Arkansas began
their milling operations in the last
week of November, 1921. This was
not until the bulk of the choice rice
in h state had been sold to outside
mills in the rough. All that was left
was the lower grades, but even with
these the association averaged on all
grades n varieties n fraction over
20 cents a bushel. The bulk of the
entire crop in 1920 had gone at 80
cents per bushel. During 1921 the as
sociation handled 1877 100000 pounds
of rice, for which its netted
S3,OOO,O0O. The Arkansas rice grow
ers received more for their rice than
the growers of any other section. They
hHoN' W 10 oD per ttni illbTt
than their neighbors in Louisiana.
In 1907 il was discovered that the
swamp lan of the Upper Sacramento
valley would grow rice. The japanese
Immediately took advantage of these
acres. renting them on a One-year
Ease. Then they pitched in with their
Oriental pugnacity to make rice pro-
duction pay. AS the California rice
Industry developed there grew up with
II an organization half cooperative.
The japanese needed someone to
sell their product for them. In 1915
the Pacific Rice Growers association
was organized, TO serve merely as an
agent with the exclusive right to sell
all the members rice. The grower,
however, had the privilege of accept
ing or rejecting the bids. Under this
system eac growers rice was kept
separately and was accounted for sep
arately after the expenses of handling
had been subtracted.
This way of selling was almost like
a public auction. The association
wasn't a real producers cooperative.
But it did give good results for about
five years, but in 1920 it failed be-
cause the millers were afraid TO buy
the crop. The association was forced
to adopt n new plan. Toll milling
was tried. This meant selling pol
ished rice. Most of the were
working their land on a one-vear
lease, and this prevented the associa-
ton from buying and operating its
OWL iiiNs' but the tolis pan uluht
WIN ou', y" 'heS hAeu up lhe original
pi"h "nuer d ne" ha1he-the hice
n,o"ei' Ala'ion Vi oaiiiorhia,
= 'oh'rac' was iehstieheu
" 'h"' was the one pls cianse