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Farm Board’s Relation to Co-op Movement Told LEGGE SPEAKS AT INSTITUTE * — Proposes Large Scale Pro duction And Central izing Agencies Alexander Legge, chairman of the Federal Farm Board, delivered the following address Tuesday night hfliore the fifth summer session of tna American Institute of Coopera tic%, Baton Rouge. La., on the sub ject, “The Relation of the Federal Farm Board to the Cooperative Movement”: "You people who are engaged in the problems of cooperative mar keting doubtless understand the in herent difficulties of agriculture. But, while it is true that the de velopments and discussions of the past few years have given people in other industries a better under standing than formerly prevailed, there is yet much to be done in bringing about a clearer under standing of the problem on the part of those not directly engaged in agriculture. There is much to be done also to bring to these groups a better appreciation of the significance and possibilities of ag ricultural cooperation. Agriculture Lagging “Why is agriculture, as an indus try. not keeping pace with other in dustries in the general progress of the country? In my judgment, the answer can be stated briefly. Agri culture has operated as an individ ual enterprise competing with or ganized effort in other industries— individual action and planning as compared with collective thinking and acting. The marked tendency in other industries is toward larger groups in which many minds col lectively determine policies and plans and follow them through. This distinct difference between ag riculture and other industries is ap parent pretty much all over the world, although perhaps in most countries it is not so pronounced as in our own United States. “For many years, farming gen *■" 1 ■ 'V erally has not shown an operating profit. The prices farmers have re ceived for their products have not advanced in proportion to advances in the prices of other commodities. Prices of many commodities, in fact, have remained below pre-war levels for long periods. As a bus iness man, the farmer has not re ceived a fair return on his invest ment, and as a worker he and his family have often labored for a grossly inadequate wage. “In the past, much effort and large sums of money have been spent trying to improve agricul tural conditions, but much of this ! effort has been directed toward im provement in methods of produc tion; that is, to encourage the rais ing of more and better crops. Work of this character can, and has been, carried out effectively, working with and through the individual farmer. In the past when a new kind of seed, or an improvement in the pro cess of producing any particular ag ricultural product was developed by the department of agriculture at Washington, by any of the state agricultural colleges, or for that matter by anyone else, it was a comparatively simple matter to con vey the information to those inter ested, and in most cases for them to make use of the information in their own operations. Organization Imperative “However, all this effort meets only a part of the agricultural problem. Obviously, nothing is gained by raising a larger crop of better quality if, after having done so. you are unable to dispose of it on a basis that will yield a reason able return for the effort expended. It is when we approach this part of the agricultural problem that the need for organization becomes im perative. There it is that the problem of the farmer most closely parallel that of every other indus try and it seems to us that the treatment to be applied can be de scribed in one word, “organiza tion.” To illustrate, if a thousand farmers attempt to sell the same kind of product at the same time in the same market, and in most cases to a very limited number of buyers, the mere competition among themselves puts them at a disad vantage. But if these same thou sand farmeiv; place the same pro duct in the hands of a single sell Complete Office \ Supplies Do you consider it safe to leave papers, etc., laying around loos, on your desk —or in out-of-date files where they may be mis ^placed? Let us show vou n the new allsteel fil ing CABINETS and Transfer Cases . . . assets to any office. Our repre sentative will be glad to call. Just telephone 348. HARGROVE’S STATIONERY ANp BOOK STORE Phone 348 — Brownsville i i r -i I 1 ; I ' * ! * 1 j m >' Blit -iw. ■ BURGLAR c Dr. Carl Percy Olvey, 30. prac ticing physician, has confessed he is Louisville, Kentucky’s, “chloroform burglar.” police say. He was arrested after a $6.00 smoke shop holdup Au thorities declare the doctor told them he couldn’t remember how many homes and offices he had entered, carrying a foun tain pen filled with chloroform. ing agency, that agency at once be comes an important factor in the market. “Markets after all are made, to a considerable extent, by the process of bargaining. The prestige of any trader in the market depends large ly on the volume of business which he -has to transact, whether he be a seller or a buyer. If we carry this a little further, say that 100,000 farmers centralize the marketing 6; their products in the same way, such an agency at once becomes a leading factor entitled, as it should be. to a voice in establishing the rules, regulations and conditions under which its production is dis posed of. It is, therefore, in far better position to obtain for the nroduct its full market value “The board believes that it can be of great assistance to the Ameri can farmers by encouraging the de velopment of large-scale, central cooperative associations. Such an agency would be in itself, because ol its prestige and influence, a stabiliz ing element in marketing. It would be able to exert a measurable de gree of control over the flow of its products to market. It would avoid temporary surpluses which so often result in unduly depressing the price of farm products much below their real value. In other words, it would be a strong mer chandising agency, virtually in con trol of the conditions under which the products of the members are sold. Local Agencies Valuable “Immediately we are av’ced. would the development of such large-scale organizations mean that the farmer should abandon or do away with their local associations? We can not see any tendency in that direc tion. On the contrary, such agen cies would help to build up and im prove the condition of each and ev ery cooperative organization now in existence. Always bear in mind that any organization of this kind would be owned and controlled by the cooperatives. It would be the farmers’ organization, produce owned and producer controlled, working solely in the interest of the producers. “The Federal Farm Board, as now organized, is not going to buy or sell any commodity, agricultural or otherwise. It is our duty to assist you in doing a better job of this yourselves. True, while we are as sisting you we wi.> want to have a voice in the transaction, partic ularly when you call for government funds to aid-in the operation, but if this counsel or advice on our part becomes irksome, and you do not like it, the solution for you is sim ple; namely, to liquidate'the indebt edness to the government. When this is done, you will be perfectly free to tell us where to go. I sin cerely hope that, based on the prog ress that has been started in that direction and on the progress that should be made within the next few jears, the time will soon arrive when it will be a simple matter fo you to do just that. "However, it is probable that you may find this board of real assist ance, even though you may not ' 1 ' — I -- —:i When You Store Your Car Here .... for 24 hours or by day, week or month you can rest assured that it will always be •‘ship-shape.” All you need to do is ’phone us — tell us what you want done to it ... . and when you're ready for it, it will be ready for you. Water in the battery, tires checked, oil changed and the engine mech anically diagnosed. Phone 1220 EL JARDIN GARAGE Rear of El Jardin Hotel m need financial aid. The board will provide a contact between organ ized farmers and the government— even though they may not come to the board for the purpose of ob taining loans . Any organized group may come to the board at any time for counsel, advice a/id assistance in meeting their problems. “The Federal Farm Board, aside from its chairman, is composed of men of long cooperative experi ence. All of its members, includ ing the chairman, are in complete sympathy with the cooperative movement. In the ten days that the board has been in session, I have watched with much interest the meeting of minds on the part of these men who have t/en brought together for the purpose of assisting the farmers of America. I have been impressed with their sympathy and their common un derstanding of the problems of pro duction and marketing; with thei. intimate knowledge of the specific problems in the various coopera tive groups. I have been greayly pleased and encouraged by the unanimity of opinion which has prevailed with respect to the poli cies presented to the board. Cooperative Policy “The major policy of the board will be the expansion and strength ening of the cooperative movement. You may ask at this point, What effect the development of coopera tive marketing will have on other agencies now existing? The an swer seems to me to be simple. Jt is purely a question of efficiency. Any efficient, well-managed organi zation that is satisfactorily serving the public at a reasonable cost will in some way work into the picture. The inefficient, whether they be co operative organizations or individ ual operators can not hope to con tinue permanently, and whether the ! passing of the inefficient operator is brought about by cooperation 0" competition the results are the same. “Again we are asked, What is the relation of the board to be ro other agencies now in existence— the great department of agricul ture, the large extension service, the state agricultural colleges and experiment stations, and each and i every other federal and state agency working for the advancement of agricultural interests? We do not. see that there should be any ser ious interference with, or disturb ance of, existing agencies. Con gress has very wisely asked us to avoid duplication, a sentiment with which the board is in full accord. Certainly we do not propose to in terfere with, or transfer to the jurisdiction of the board, any gov : ernmcnt activity unless such trans : fer is in the interests of the great er efficiency and more effective service to the American farmer. There may be some work which pe | culiarly fits into the operations of I the board and is essential to its I efficient operation. "I wish to assure you, however, that as a general rule it will be i the policy of the board to call on all federal and state organizations for assistance and cooperation, per haps to an extent that may cause some of you to think we are trying to get them to do our work. The task before us is of such magnitude that a common-sense program re quires that we utilize to the fullest extent every agency in existence which may be able to contribute anything to the cause. Marketing Act Delayed "The enactment of the Agricul tural Marketing Act is a matter that has long been delayed and per haps the uppeaiost thought in the minds of many of you is when and how are we going to get busy to do something under it. Prompt action ! is important, but it is still more im i portant that we move in the right direction. In the short space cf time it has been able to devote to the problem, the Board has reach ed the conclusion that its first op erations can be most useful, and more safely carried on, if it under takes to further the activities of established agencies in the co operative marketing field. Perhaps the building up and strengthening of these cooperative agencies will so simplify many problems that their solution will become comparatively easy. “The records of the department of agriculture show that there are j some 2.000,000 farmers in the Unit ed States, or practically one-third ofthe total, who are now members of approximately 12,500 coopera tive associations. If these coopera tives can be built up so that their strength and efficiency are recog nized by those not now members the question of extending member ship very largely settles itself. In other words, it is inconceivable that any farmer would refrain from be longing to a cooperative organiza tion, once he is convinced that it is operating in his interest. “I hope that each and every one of you will study the law itself so you may have a better undemand ing of what it is we are expected to do. In it you will find many sug gestions as to things that might be done to help you cooperate. You will not find anywhere any sugges tion that government money should be spent for the purpose of stimu lating competition among your selves. In many of the commod ity groups there is a marked di vergence of opinion as to how the problem should be worked out, and agencies have been set up tackling it from different angles. “These should find some common ground on which to get together and pull together for the common cause. Permanent Program Studied “The board is considering this as a long-time constructive program rather than simply one of dealing with emergencies. If we confine our efforts to dealing with those in distress, the probabilities are we will find little time to remove the cause! of the distress, which after all is the more satisfactory solution. We realize keenly the necessity of prompt and adequate assistance, i but we realize equally keenly that any action which the board takes must be sound and for the perma nent betterment of agriculture. “Some of you will say that we have not mentioned stabilization corporations. It seems to me that it may well happen that the co operatives now in existence, or im proved organizations growing out of existing cooperative organizations, may prove to be all that is needed to carry out the idea of stabiliza tion corporations. There may prove to be extreme cases which call for measures that can not be carried out by the cooperatives, but it is hoped that correction of the fun damental causes of agricultural emergencies will enable the board to consistently carry forward a program based on the development of large, well-financed and effi ciently managed cooperative organi zations. The funds entrusted to the care of the board will be administered for the purpose of carrying out its program of which the central thought will be the strengthening of the cooperative movement, and the permanent betterment of farm conditions. In the financing of plants and facilities for coopera tive organizations, and in other ways, the board can be of material assistance. Lack of adequate fi nances has been one of the handi caps of the cooperative movement. “I think it proper, however, to inject a note of warning at this point. It should be obvious that the cooperative movement can be j weakened and a large financial bur den imposed upon it by unsound in vestments. Therefore, money bor rowed from the board for the acqui sition of facilities must be invested wisely and frugally. This is essen tial in order to safeguard the fu ture of agricultural cooperation. The act wisely provides that money shall not be loaned to build ne«r plants or facilities where satisfac tory facilities are already available. Money certainly will not be loaned to purchase obsolete or inadequate facilities. Certainly loans will not be made to acquire plants and fa cilities at prices greater than their value to the associations making I such purchases. As a matter of fact, it is expected that the farm ers’ organizations will drive hard bargains, having in mind alwavs their responsibility to safeguard the investments of their members and provide economical and efficient facilities for marketing their pro ducts. Board Can’t Raise Prices “There are many people who think that the board’s activities should be directed to the arbitrary raising of the price level for agri cultural products. The board can not raise prices arbitrarily. Prices, as has been said many times, are ! determined by basic economic con ditions—by the demand for a com modity, the supply available to meet that demand and the manner in which the supply, is fed to the mar ket. What the board hopes to do is to assist farmers to become better able to compete with other groups in the markets of the nation and the world. It expects by aiding in the development of cooperative associations to make possible econo mies in marketing and stabilized marketing conditions, and to assist farmers to obtain their just share of the national income. “The effect of all activities of the federal farm board on production must be carefully considered. The result would be only a vicious cir cle, if the work of the board should result in a large expansion of culti vated lands and the production of greater and greater surpluses of our principal crops. I feel confident that the board's program of work through the cooperatives is th° only plan which will avoid a calam ity of this kind. Farmers' cooperative associa tions are more than mere distribut ing agencies. They also serve co i link the farmer with his market Unless a farmer is a member of the organization which markets his products, he has little or no contac1 with market problems and little or no conception of the kind, qualitv er quantity of farm products which the market demands. Under th-* cooperative system, the farmer usu ally receives market premiums for products of high quality. Hence, tne member of a cooperative asso ciation has an economic motive for improving his production practices which other farmers do not have. Consequently, the cooperative asso ciations, in so far as they have de veloped to the point where they are offering the farmer a complete marketing service, are coordinatin'* production and marketing. 3 Production Problem Because of this relationship to their members, the cooperative as sociations are the one agency whicn can effectively discourage unwis expansion in acreage. The prob lem of coordinating production with demand varies in difficulty witn regions and commodities. In manv sections, the associations market ing milk have made great progress in adjusting the total and seasonal production to the requirements of the market. With other commodi ties less progress has been made. However, the possibilities are large and a need for careful study of these possibilities is urgent. As I RUM DEATH Elijah Belgard, 21, above, of Plattsburgh, N. Y, was killed when his car turned over while he was being chased by Cus toms Officers Francis L. Cove ney, who was connected with the shooting of Arthur Gordon on June 15, and Per:y H. Cole man. Belgard is alleged to have thrown tacks into the path of the customs men. who say they found several cases of beer in his car. have said, effective coordination of production with demand must be brought about through the coopera tive associations. Enough progress has been made, in my opinion, to indicate that the farmers’ organi zations can meet and solve this problem as they are meeting and solving the problems of marketing. “The production of farm products in excess of normal marketing re quirements is a waste. It injures the producer without benefiting the consumer. The consumer requires and should have a normal supply of food and textile products of hign uniform quality. The producer de sires a supply which can be sold at prices which will assure him a rea - sonable profit on his farm bus iness. The development and main tenance of a condition of stability with regard to production and price will benefit both producers and consumers. Such coordination of supply and demand is a problem to which the farmer cooperatives must give further attention, and in the solution of which the federal farm board must render all possible assistance. Calls for Patience “In conclusion I wish to say that the farmers and the public must be patient. The problems of agricul ture are of long standing and can not be solved overnight. On the contrary, there is always the dan ger of increasing and aggravating our difficulties by unwise and pre mature action. I wish to assure you that the federal farm board will move as quickly as is consist ent with the assured and perma nent improvement of agriculture. At the same time, the board will 9 The Funeral h x n IN all details, a service unexcelled in this com munity. Beautiful mortu ary cbapel. Splendid motorized equipment. TVenty-four-hourservice every day ir the year. THOMPSON’S MORTUARY Harlingen and Nan Benito Texas Telephones 256 and 68 Authorized Distributers of National Caskets * p A not undertake to force its program upon any group of people. It will move only as fast as the farmers through their organizations are abel and willing to accept the pro gram. The improvement of agri cultural conditions must be based on self-help. The board can con tribute largely and will contribute to such improvement. In the long run, however, the board will ren der the greatest service to agricul ture and to the nation by helping the farmer to help himself. Trio Charged With Disturbing Peace Catarino Garcia. Lup£ Amayo. and Beatrice Abrigo. charged with with disturbing the peace were committed to the county jatf. Amayo began serving out a fine of $21.25; Abrigo one for $17. Ten more prisoners were com mitted by immigration authorities for illegal entry. The following county prisoners were released after payment of fines; Santiago Perez. Francisco Maya. Tranquilo Yzaguire, Cedonia Keily, Antonio M. Cavazos. Enrique Cerda. Ramon Guerra was released to immigration officials, and Iola Lewis was released by order of the county health officer. The population at. the end of the day was 138. Ten Draw Fines In Justice Courts Here Ten men picked up by officers Saturday night were tried on mis demeanor charges in justice of the peace courts here and fined from $15 to $20 in each case on pleas of guilty. Two defendents paid fines and others went back to jail to serve out their fines. Those tried in Justice Cain’s court were: Gilberto Zamora, charged with volating the highway law, $17 fine. He was arrested for driving a ser vice car without a license. Pedro Martinez, charged with drunkenness, $20 fine. Eulr Calderon, Santiago Perez, Francisco Sanchez, Antonio Cav azos, Enrique Cerda, Francisco Maya and Trcnquilo Yzaguirre were each fined $17 on charges of drunken ness to which they pleaded guilty, Martinez and Perez paid their fines and were released. Archie Dorsett was fined $1 and costs in justice of the peace Kowal ski's court on a charge of drunken ness. Of the three daughters and two : sons of Charles Bird. Cpringville, I Utah, each is the parent of twins. iiiiMiiinirm.iim.i ■«' F inal Reductions On SUMMER APPAREL FOR MEN We’re clearing out our entire stock of summer suits. In cluded in this group are Nurotex, Linens, Airplane Weaves — Regular $19.50 values, now .... A fine collection of tropical worsted and gabanero crepes —splendidly tailored and in a complete variety of colors. Regular $24.50 values, now 517m Any Straw Ha' in the Store a ) B/// 0/ 'J wjf tit ML.'JS *** /.* ¥ BKCWKSvITlE TEXAS . . --- --- - --- - - ■ ... Low Round Trip II Vacsati©! fares to many interest inq places I SUGGESTIONS Q° conifork^e trains- I '’there ore rttert) more pjai. on y0ur yacotion-Stop- I AshertnT n. cV. *.".'... 75.15 Overs and diverse routes ?SoPaspkn?gsJ cot: .ew York! *££ returning permits you to visit I Chicago, 111. 83.io many points of interest at small ■ Estes Park, Colo... 7D.45 ovhonco^ Kansas City, Mo. 68.70 fSX/Jtfrtb Montreal, Que.125.90 New York City (water both ways). 130.25 n it New York City (rail and water)... 142.45 ™ Booklets, * Niagara Fails, n. y. 107.50 fares and routes 6,. Por tland, ore. io5.io ' any proposed trip dadhf Portland, Maine . 142.50 i Salt Lake City, Utah. 86.20 JUmiSMd Oft request Seattle, Wash.*.. 105.10 St. Paul, Minn... 82.65 On Sale Daily St. Lonis, Mo. 74.70 Return Limit October 31. Toronto, Ont .107.50 Yellowstone National Park. 99.95 Headquarters for travel Informationw jT Phone 1207 *■ X v.