The Carbon County news. [volume] (Red Lodge, Mont.) 1924-1931, 1929-10-31

:; movement started in tn:
= country several generations ago. II
ohirstensens We're among the fir,
as TO join the various societies.
a Such are the qualifications of tn
men who will administer the new Ac
VIVA tare they empowered to do
- The law provides that cooperativ
= associations may choose their ow,
commodity advisory committees I'm
. der regulations issued by the Board
we will soon have national commit
= tees chosen by the cotton, hog. beef
= cattle, grain, citrus, dairy, and othe,
cooperative groups. The committee,
are important: each will consult witt
the board members regarding the
problems of its particular commod.
: ltles. They will also assist the Board
to carry out nationwide educational
campaigns to balance the production
OF various farm products with pros
peetive demand.
Sterilization Corporations
: The Board is also empowered to
deal with seasonal and exportahle
surplus of the various farm products
when emergencies arise. One method
OF doing so will be to establish So
called sterilization corporations
for each farm product whose prob
lens require such drastic treatment.
Let us suppose that there were n
price depression in cotton. Under the
law the advisory committee could
consult with the Board, and upon the
request of the committee the Board
could designate some company to act
as cotton sterilization corporation.
The law requires that all of the cap
ital stock in such corporation be
owned by cotton eooperatives or cot
ton producers. Acting them under
supervision of the Board and with
funds borrowed for the Board. this
corporation would buy in the omen
market sufficient quantities of cotton
to restore confidence of the trade in
cotton prices. The corporation might
store the cotton and later, if the price
rose, gradually dispose of its stocks.
But suppose the price of cotton
should reach so high point that
there were prospects of subsequent
overproduction. The same corpora-
ton might offer its holdings for sale
IN such manner as to stabilize cot
ton prices at a point which. while
still profitable to growers, would not
result IN overproduction.
These commodity sterilization cor 5
porations have another function. |
The Board may authorize them to f
function as central selling agencies c
tor eooperatives in each commodity t
lust as the California Fruit Growers i
Exchange functions as central sales t
agency for the local citrus-packing t.
houses of that state. In this capa- s.
'ity the sterilization corporations G.
nay borrow money from the Board b
It low rate of interest in order to CT
acquire or erect whatever plants. n
and other facilities might eli
e necessary for efficient merchan- tt
Using. ID
The Board may also make loans d.
ect to agricultural cooperatives for til
hem to acquire plants or warehouses Ic;
ut the law places so many prohibi- o,
ons against loans Of this character or
hat 1T may be somewhat difficult
Or an association to obtain money i
! this way. =,
Borrowing Money From the Board -
The Board may supplement the -
ans on warehoused products which -,
are now able to secure ~
trough the Federal intermediate III IT.
redit banks in order to permit CO. -,
'eratlves to make larger initial adj -,
'nees to producers at the time crops -.
e delivered. For example, a CO. -,
'erotive might be able to borrow ~
per cent fthe market value of it's T.
neat through the nearest Federal 49,
termediate Credit bank. If market M
nditions should SO Justify, the NJ,
,ard could lend the cooperative an ~
ditional 20 per cent. This provi- ~ -:
IN was put into the law because of ~,
e pressure which merchants and 49,
mixers each year put upon individ- en,,
farmers to sell their crops for of
sh Immediately after harvesting.
The Board is also authorized to .;ap
sister and supervise so-called "in- o a.,
stry clearing houses" BY this is D. D..
ant conference board of inde- -
1dent producers, cooperatives and -,
dependent packers or distributors of :.
m products. They are to operate q
on the theory that sometimes the 'ica
icient merchandising of a product soil
Iuires rather far-reach,ng con- q.
over its distribution, and often l lTa'
competition between the various ;, ne
mbers of an industry results in .na'
is at some centers on the same ~
: are suffering from a scarcity of iio'
product. 1t was thought that WIZ
irlng houses of this character va
mt bring about general stability - :
market conditions which would be Doa
eficial to all. sro'
he po,,.d 49,, $500 were
lcultural cooperative associations
inst the price decline of a COM i :. ~.
Iity In this case, the law re- - :