Plentywood herald. [volume] (Plentywood, Mont.) 1908-current, 1930-01-30
DISPUTE OVER STORAGE SYSTEM

DISPUTE OVER STORAGE SYSTEM
At the meeting called to organize a Montana
branch Of National Grain corporation and discuss ways
and means of storing wheat within the state, some
dissension arose when a Farmer Union official asked
for the floor and severely scored the plan proposed by
most Of the speakers.
The dissenting speaker was j. A. Phillips, pres
ident of the Pondera County Farmers Union and. if
the storage system proposed should operate on the
principals he charged against it, his objections were
we'll founded.
However, we believe Mr.. Phillips is somewhat
misinformed but we have been unable to secure any
information to the effect that his remarks at the
meeting were refuted.
1t has been charged that the Farmers Union,
which for many years has operated a marketing
bureau and engaged in other business ventures with
more or less success, sees the federal Farm Act in a
somewhat different light than the rest of the cooper
atives, and that its officials have not worked in har-
mony with proposals of the Federal Farm Board.
Circulation Of this rumor, however, brought a
denial from A. w. Kicker, editor of the Farmers I'm
ion Herald, who claimed that the Farmers Union was
not at all jealous Of the activities of the other CO.
operatives, and was actually in harmony with the
Farm Board plan.
These little difficulties are almost certain to
arise and retard the speed Of every progressive move
ment. Individuality and personal ACKNOWLEDGEMENT are
not always easily set side for any cause. Sometimes
they have a wholesome effect by causing more thor
ough discussion which reveals sinister influences that
would have spelled disaster for the movement.
However, to get back to Mr.. Phillips objections,
we think he has overlooked the real principles Of the
federal farm act.
The cooperative through which the farmers
would receive their loans on stored wheat, is merely an
agency Of the Farm Board for collective action
Everyone realizes that the Farm Board could not deal
with the individual farmers The overhead of such a
system would more than Offset any advance in price.
1t is imperative that the Farm Board work through
some organization set up by the farmers themselves.
With branch co-operatives in each state, all
working through a national unit set up to deal direct
ly with the Farm Board, the farmers must be depend
ed upon to work out their best plans Of branch ana ma
tional co-operatives. There are bound to be costly err
rors, and changes are going to be necessary.
Mr.. Phillips opposes the central Montana stor-
age system on the grounds that the storage charges,
freight and interest on the loans will absorb about
twenty or twenty five per cent Of the market price.
In this Mr.. Phillips is wrong.
The storage charges will be actual cost, plus a
small pro-rata charge at first to build up a surplus.
The interest charges will be the Farm Board rate Of
3h per cent plus a handling charge. The two COM
bines should not exceed six or seven per cent Of the
market price, if that price should be as much as one
dollar q bushel.
Furthermore, holding the wheat in the state
will have a tendency to standardize the price and elm
mate seasonable gluts and terminal COMPOSITIONS,
which are the greatest excuse the grain spectators
have for driving down the price.
Mr.. Phillips, figuring the l cent per bushel per
month storage charge and the 10 per cent loan charge,
Is dealing with figures that are entirely foreign to the
federal farm act. Those are the abominable charges
which the Federal Farm Board are seeking to elimin-
ate.
1t is just possible that what bothers Mr.. Phil
lips Is that the profit from the transactions will 20
back to the farmers instead Of to his Farmers Union
marketing organization.
There is one thing sure: if the farmers cannot
agree on a cooperative plan and each insurgent proup
sets up a marketing bureau of its own, all the bene-
fits Of the federal Farm Act will be lost to the farm
ers.' The Farm Board is acting with due regard for
the future when it insists that the numerous COOP
eratives get together and form a national cooperative.
The marketing business is a huge business. It
must be handled in a business like way.
CRTVCEPO CIpCr