Plentywood herald. [volume] (Plentywood, Mont.) 1908-current, 1930-03-20
UNIT IS SET UP
BY GRAIN MEN
Federal Farm Board

mefS National Tram lOfpOrallOf
with q capital stock of $4,000, 900
When tile board started TO lay plan:
for the establishment of this nation.
al institution it faced the tremendous
task Of working out in cooperation
with producers and their leaders 6
system of marketing that would be
If potential benefit TO grain growers
throughout the entire United States
The magnitude of the problem con
fronting the board members and the
cooperatives' representatives is indi-
Gated by the fact that approximately
Lice. 900 900 bushels of all kinds of
grains enter marketing channels an
nually in this country, according to
estimates. Approximately 40 per
cent Of this grain is handled by more
than 1000 grain c~ooperatives in the
nation.
Believing that substantial benefits
might be obtained for grain produ-
GERS by bringing together the inter
ests Of these cooperatives into a lar
ger-seale marketing organization, the
Federal Farm Board on July &c, 49,
q, took the initiative and called a
meeting of 81 men representing the
farm-owned grain-marketing assoc
iation and suggested a possible set-up
for a central selling agency. At this
meeting and subsequent meetings
plans and policies were developed
which resulted in the formation of
the national corporation which was
incorporated under the laws of Del
aware on October 90, 1929.
On January l, 1880, William G..
Kellogg was employed as manager of
the grain corporation, with head
quarters at 943 South Dearborn ST.,
Chicago, III. Mr.. Kellogg started in
Immediately to line up short time af-
ter the corporation opened its Office
the work Of merchandising grain
through the growers own market
ing machinery was under way.
The Farmers National Grain Cor
poratlon has adequate capital and if
given the support of existing far
mcr-owned guaranteeing associa-
tions it is expected to handle annu-
ally a volume of more than 500,00O,-
600 bushels of different kinds of
Under this system of marketing all
grain received from member cooper
atives will be sold by the national
agency. Grain producers who wish
to market their grain comparatively
are required to become a member of
a local cooperative. The grain is
turned over by the farmer to the To-
cal association, which passes it along
to the national. The central agency
has full charge Of marketing all
grain coming in wei the cooperative
route, no matter where the grain or
iginates.
The local associations take stock in
the regional, and the regional in turn
takes stock in the Farmers Nation
al Grain Corporation. In this way
the producers not only control the CO.
operative marketing machinery but
participate in the earnings and SER
vices in all of its activities. No pa
tronage dividends will be distributed
until the capital and surplus total
$40, O00, 900.
All local, State, or regional COOP
.eratives that are to benefit under the
grain-marketing plan fostered by the
Government are required to affiliate
with the national corporation. Afil-
iating association must be true CO.
operatives that will stand the test Of
the provisions of the Cappers-Vol-
stead Act.
At the present time, according to
official records, slightly more than
half the farmer-owned grain-market-
ing associations in the United States
qualify under the Capper-Volstead
Act; and many more, particularly
farmers elevators, may qualify mer-
ely by changing one or more of their
bylaws which are now in conflict
with the act.
Through the national set-up all
existing farmer-owned grain-market-
ing facilities will be used to the
greatest extent possible, and an at
tempt is being made to avoid dupli-
cation of effort and to eliminate COM
petition among cooperatives.
The National Grain Corporation
provides a medium through which the
Federal Farm Board will make loans
to grain cooperatives from the $780,
100000 revolving fund authorized by
Congress. Loans will be made thru
the national to the growers cooper
atives for current marketing pur-
poses and for the requirement of
physical facilities. Commodity loans
are being made available by the board
and making it possible for growers
to get advances on their grain con
signed to the central agency.
With their own marketing machin.
cry adequately financed the grair
growers of this country expect to re-
duce local and terminal marketing
costs, eliminate much waste in mar.