Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-29
DRAFT COMPLETED
|. FOR COTTON COOP.
$50, 900, 900 Marketing Plan
Will Be Referred to Legal
Authorities.
BY the Associated Press.

BY the Associated Press.
Hurrying to completion the $40, 900 900
corporation for cooperative marketing
of cotton, the growers subcommittee on
charter and bylaws was ready last
night to turn its final draft over to legal
authorities.
Counsel for the growers and the Fed
eral Farm Board will determine wheth-
er the draft Is at variance with any
point Of law and send it back to the
subcommittee before 1t is presented to
the board. If approved all around, the
draft will be submitted to the national
organization committee at Memphis,
Tenn, and it will proceed with the in
corporation If satisfied.
Difference Is Explained.
Carl Williams, cotton's representative
on the Farm Board, interpreted the
draft last night as differing from the
grain corporation in that local CO.
operatives will not be allowed to buy
outright from their members. In the
plan Of the 81 100000 North Pacific
Grain Growers Cooperative Associa-
ton, farmers can sell on cash basis
to their local cooperative, taking the
days price prevailing at the time Of
delivery.
state laws" williams said, prohibit
such practice on the part of cotton CO,
operatives. However, the individual
farmer can sell on a spot market by de-
livering his cotton to the central Or
sanitation.
IF he sells directly through his local
cooperative, which turns the cotton
over to the corporation for marketing,
he has one Of two choices. Either he
accepts certain per cent of the current
cash value and allows his cotton to go
into seasonal pool to be sold at the
discretion of the corporation, or he sells
on an optional basis, taking stipu-
| lated per cent of the value with the
understanding that the remainder is
TO be paid, less storage charges, at
| whatever date he orders the cotton sold.
Average Pool Price.
'If he elects to use the seasonal pool
he will receive, when the pool is closed,
the average pool price for the cotton
delivered, less q fixed local handling
charge, plus other marketing expenses. I"
williams indicated that the corpora
ton would prefer the farmer to sell on
the pool basis, giving 1t a larger guam
tity with which to develop bargaining
power at terminal markets. Advances
TO the producer on pooled cotton, he
said, might run as high as 80 per cent
OF the current cash value, whereas ad-
vaI1ces on optional cotton probably
would average around 80 per cent.
The generous advances, he said,
would make cash sales the less desir-
able of all, inasmuch as deferred sales
to be directed entirely by the corpora
ton, hold promise of higher prices
through accumulated bargaining power
As outlined by Williams, the farmer
his local cooperative and the central
sales agency would be the chief units OF
the national set-up. Regional and State
co-operatives, which now are market
ing bodies and which already have
been authorized by the farm board to
borrow q total of $22,710,000 in supple
mental commodity loans and $3.50, 900 In
facility loans, would be relegated to the
background, with function little more
than educational and advisory.
They are now distributing their loans
to member organizations as requests are
made and security advanced. After
the corporation has been established, all
loans would be made through it with
money borrowed from the Farm Board
Describing the fertile field the cor
poration will have for development,
Williams said that Of the some 1000, 600
farmers producing cotton, little more
than $1,000 are now members Of a CO.
operative.