Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-10-29
GRAIN PRODUCERS
ARE INCORPORATED
First National Commodity
Association Files Papers
in Delaware.
BY the Associated Press.

BY the Associated Press.
The first national commodity CO.
operative sales association to be set up
under the guidance of the Farm Board
came into legal existence today as the
Farmers National Grain Corporation
filed incorporation papers at Whining
ton, Del.
Similar organizations for the wool and
monair and live stock co-operatives are
in process of formation, and will be
completed soon, the Farm Board an
nounced, at the same time expressing
the hope THAT co-operatives handling
other commodities would foster similar
move. '5e,
The new grain corporation will make
use to the greatest extent possible of all
existing farmer-owned grain-marketing
facilities The board said the organiza-
ton would have adequate capital, and II
given adequate support Of farmer
owned grain cooperative associations
will handle annually in excess of $780,
100000 bushels of all grains.
Method of Management.
General and active management Of
the organization will be in the hands IT
a general manager, who the bylaws
provide, shall be person acceptable
to the Farm Board"
Chairman Legge of the Farm Board
announced in Chicago several days ago
that approximately $l00, 1000 900 would
be made available to the grain CO.
operatives. The Grain Corporation, the
board believes, will provide a medium
through which 1t can make loans to
grain marketing associations, both for
current marketing purposes and for the
acquisition of physical facilities. Such
an organization, 1t was said, should not
only reduce local and terminal market
ing costs and eliminate waste, but also
exert a strong influence toward q
greater market price sterilization.
The corporation, the board said, pro-
vides a plan whereby farmers may ex-
tend thicr cooperative grain marketing
on extensive scale into the domestic ter
ninal and export markets.
Committee Drew Papers.
The corporation is the result of three
months study and work by committee
representing SO farmer-owned grain CO.
operative associations. An organization
committee of 16 representatives from
these organizations created o subcom-
mittee of three members, Sydney j. Cot
tington Of Stanhope, Iowa: Clarence e.
Huff of Salena, Kans., and John Man.
ley Of Enid, Okla, to draw up the cor
poration papers filed today.
capital stock of $10,000,000, and no
patronage dividends will be distributed
until the capital and surplus total
S20,000,000. Dividends on all stock.
which can be subscribed to only by
farmer elevator associations. farmer
owned grain sales agencies and growers
grain pools, will not be in excess Of 8
per cent. Stock will be sold upon a
minimum basis of 500 a share, to be
paid for either in cash or on terms.
Only associations meeting the provi-
sions of the Capper-Volstead act may
subscribe for the capital stock of the
corporation. The main provisions Of
this act are: Membership shall be
made up of agricultural producers; the
association must be operated for the
mutual benefit Of its members: that
the association does not do more bust
ness with non-members than with
members and that It must follow the
principle of one vote per member or
else dividends on capital stock must be
limited to per cent.
In making arrangements to handle
grain of Its stockholding members. the
corporation, under its charter, may buy
the grain or handle it on a brokerage
basis.