Evening star., 1925-01-27
FARMERS WINNING
BY COOPERATION
Gray Silver Tells of Unusual
Success of Merger for
Sale of Grain.
BY FREDERIC WILLIAM VILE.

BY FREDERIC WILLIAM VILE.
Grain growing farmers, acting on
President Coolidge's tip that self
help is agriculture's principal ally,
have improved their position by $780,
000, 600 in the last six months. Through
cooperative effort they have solved
the problem of exporting the grain
surplus without either Treasury aid
or new Legislation.
Remarkable facts and figures on
this score were laid before the Presi-
dents Agricultural Commission, which
has just submitted it's report. The
commission was informed that
much OF the export surplus has al
ready been handled that the balance,
amounting perhaps to 75, ,000,0 600 or
100, 100000 bushels probably will be
moved at a good price before June so.
Mr.. Coolidge told the National Coun-
Gil of Cooperative Marketing Asso-
Citations in Washington a few days
ago that "the lions share" of the
work Of agricultural relief must be
borne by the farmers themselves.
The grain growers discounted the
Presidents admonition far in ad-
vance.
Backed by silver.
It was Gray Silver founder of the
farm bloc, legislative counsel of the
American Farm Bureau Federation,
and now president of the Farmers
Cooperative Grain Marketing Com
pany of Chicago, who told the Agri-
cultural Commission this striking
story. Silver was one of the out
standing champions of the McNary-
Haugen export corporation bill in
the last session of Congress. He still
has kind words for it. But it fell to
his lot to show that President Cool
idge takes sound ground in urging
farmers. like other business men to
pun themselves out of trouble. in
stead of expecting the Government
TO nurse them out Of it.
The farmers marketing corpora
tion since establishment seven
months ago has handled an impress
sive proportion of all the grain com
ing to omaha, Kansas City, Chicago
and other terminals during the cur
rent crop year Mr.. Silver contends
that If financially supported by the
grain farmers, the company can deal
practically and successfully with ex-
portable grain surplus every year.
The corporation leased all of the
properties and facilities of four of the
greatest grain merchandising con-
Germs in the country for one year.
with an option to purchase on August
!. 1925, for about S16,000,OO0. The
leases put the farmers in Immediate
possession of some 80 terminal ele-
Nators stretching all the way from
Duluth to Buffalo, Norfolk and Gal
weston, IS well as 20 American branch
offices and a powerful European sell
ing agency. Nine chief executives
or the merchandising companies taken
over by the farmers entered their en-
ploy as business managers. Ever since
then the farmers company has been
the dominating factor in the domestic
and export grain trade.
Policy of Company.
The basic policy of the company,
according to Mr.. Silver, is to rush of
fered grain from the producer to the
consumer and get it off the market.
Applied to exports, this policy has re-
suited In forcing Europe to take our
surplus wheat before the end of the
crop year. The purpose is to enable
the domestic market to be self-deter-
mining behind the new accent duty
on wheat until the new crop comes
IN. This prevents the incoming crop
from being "beared" except as low
prices are caused by the necessary
carry-over.
Already 10000 farmers are inter-
ested In this vast self-help marketing
proposition. Silver hopes some day
that a million farmers will be behind
It and in it. For the first time the
grain growers have operated on the
strategic lines pursued by the grain
commission houses traditIonally ac-
cused of exploiting the farmer.
Last Summer Silver's company, emu
lating the bulls and bears bought up
several million bushels of rye at
Duluth. The rye was put on lake
vessels and moved out of sight to
lower lake ports, thus breaking the
physical blockade and improving the
statistical situation. Rye advanced
from about 70 cents to S1.30 a busheI
and the American market was clear
ed for action when the European
shortage developed. At a psychology
icaI moment the cheap Montreal
route was jammed with American
wheat at saving of several cents a
bushel. Then wheat was sent di-
rectly from the southwestern farms
to ocean vessels at Galveston. Nine
million bushels of space on lake YES
sells was used for storage in order to
relieve elevator capacity after the
company's $4,000, 600 -busheI capacity
was filled. To help wheat prices in
Ohio and Indiana the farmers ele-
vator at Toledo was turned over six
times IN as many weeks as against
once a year formerly.
Private grain traders, according to
Gray Silver, lose no opportunity to
prejudice farmers against co-opera-
tion. He indicates there will be no
lack of "insidious and camoufaged
propaganda" between now and next
August. BY that time if the farmers
have not raised S4,0O0,00 to turn
their present leases into a purchase.
the new cooperative marketing com
pany will be forced out of existence.
Copyright, 1925.D