Show m ASPECTS OF by BERNARD M BARUCH reprinted from atlantic monthly 1 IV continued As nn an example of integration take tale he steel industry in which the model 8 the united states steel corporation with its iron mines its coal mines its ake ahe and rail rall transportation its ocean vessels its ty by product coke ovens its alast furnaces its open 1 earth and bessemer furnaces its roll rolling mills its tube mills and other n anuci turing processes that are carried to the I 1 agh st degree of finished production corn com ft ith tl tie e large trade it I 1 IT ailt up all this is generally concede ed to be to tie tl e advantage of tl ti e con in er nor dees the steel corpor inconsiderately dump its prod acts on tl it e market on the contrary it so acts that it Is frequently a stabilizing influence as is often the case with oth r large orgin lations it is n aster of its d strib ution as vi well ell as of its pro auction if prices are not satisfactory tl it e products are held back or prod ic tion is reduced or suspended it is not compelled to send a 5 bears ears work to the market at one time and take wl alever it can get under such circumstances it t I 1 las as one selling policy andeits and its own export department edtl er or are the grades and qualities of steel determine de ed at the caprice of the buver buyer nor does the latter hold bold the scales in this sin gle integration of the steel corporation is represented about 40 per cent of the steel production of america the rest is mostly in the hands of a bev large companies ompa nies in ord nary times tl ti e steel corporation by example stabilizes all steel prices if tl ti is is permissible it Is even een desirable because stable and fair prices are essential to solid and continued prosperity wl y w it be wrong for the farmers to utilize e central agencies that would I 1 a ave ae e lar effects on agricultural products something like that Is nhat ft hat they are aiming at some farmers favored by regional compactness and contiguity such as the citrus fruit raisers of california al at ready have hane found a way legally to merge and sell their products inte into brally and in accordance with seasonal and local demand thus improving their position and rendering tl ti e con sumer a reliable ser service oce of ensured quality certain supply and reasonable and relatively liely steady prices they have not found it necessary to resort to any special privilege or to claim any exemption under the anti trust legislation of the state or nation with oat removing local control they have haie built up a very ery efficient marketing agency the grain cotton ind to beeco farmers and the producers of I 1 ides and wool NN ool because of tl air num ars and tl e i vastness of tl air regions aid a id tor for other reasons la lave lae e found integration a more d task though tl it e e are now some thousands of farmers cooperative eleNa elevators tors aa el loues creameries and oti olt er en te to arises of one sort and another with a turn over oner of a billion dollers a year they are giving the farmers business busIne qs experience and training and so far as they go they n beet tl it e need deed of honest weighing ind fair grading but they do not meet tl e requirements of ditl n ally adjusted marketing in any larg and fundamental mental way vay the next step which be a pat tern for other groups is no v being prep prepared ered I 1 y it tie e grain raisers agh the establishment of sales med a which shall 1 andle landle grain separately or col fictively as tl it e in bidual farmer may elect jt is tl it is step the plan of the committee of seven seventeen I 1 pen n which h tell has created so much opposition and Is thought by so e to be in conflict with the antitrust lav laws s though gh tl it ere Is now before congress congre s a measure de signed to clear up doubt on this po nt tf grain producers are not relying on olly immen ty fro fron u anti trust legisla tion they desire and tt it ey are en titled to co 0 binate their efforts j as effe effectively ethely as ns the large business in teresta of the country have hane d ne in connection with nith the selling org orgarita organ ariza la eions the united states gran gra n gro vers ers v incorporated la Is drafting s P sel erne eme of financing instrumentalities and aubill ary agencies 1 ellch I leb are ind spen sible to the sf il utilization of modern business methods it Is essential tl it at tl it e farmers should proceed gradually gia dually with ith these plans and aim to avoid anold tie error of scrapping tl ti e exiting marketing mi chinery NN wl itch ich I 1 as be n so laboriously built up by I 1 ng experience before they I 1 lave a e a it tiled led ind pron proved ed tule tute or supplement try iry inis ii 11 they must be ca eaul not to becci e aames ed li ii gieir binn reforms ind and lose I 1 tie e perspective e of it gieir air in the nati nationiel onil dyste i tl TI ev i lust g gaird vird fanatical de devotion atlon to new d c trines and should seek artic n N ith it tie e genei general a eco on one c sy system stem lather tl it an its re kless idess destruct on as ft it relates to them V to til tal e a t and betic lew clew of tie timers strivings ings f r let ter tl it ings is n t to gk give e a bl nl lit et endorsement to ans an specific pl pill ii a ai I 1 till less I 1 apala I 1 the igar es of some of their and g ups ei should we N e in n it tie e oti olt er bin b hinl in I 1 illow tie froth kf f bitter ig t tion ilbe econ oriles an I 1 i ra lical ica tm bm to conceal the facts of it tie e faun faim ors d aniag a d tl it e I 1 ty of eliminating then i by well i hii con mei measures it i ay iy be tl it at tl it e NN 11 not sho v tl ti e busi ess sagacity and den develop elop it tie e i wise ise lea lealer ter I 1 ip lp to carry through s u id elins I 1 at lot lat possibly ty does not justify tie tl e obstruction of their efforts IA e as city people see gee in I 1 ugh agh and manip cited prices waste sc arIty it tie e results if detects defects e d af pf farn irod nets ano lid ild it not occur to us that ne ile have a common interest with the firmer in his ills attempts to attain a de gree of icy in distria cor responding to his ills efficiency in prodie tion do not the recent fluctuate fluctuations ons in the fay wheat 0 eat option apparently unrelated to normal interaction of supply and deman I 1 offer a timely proof of the nee neel I 1 of sone solle such izing zing agency as the grain growers have haie in contemplation it Is contended out tl at if their proposed organizations be perfected and operated tie farmers will lave in their ha ids an instrument that will I 1 be b e cai eat able of danged ou abuse we are tol I 1 tl it i 1 it NN will ill be poss pos ble to pervert it to ill ait wiry and oppress ve ne price fixing fro 11 its le leg ti binate nate use of order ing ai d stab lozing tl it e flo v of farm products to tl it e n irl et to the mutual benefit of producer and consumer I 1 have hale no appi ehens ebens ons on this point in tie tl e first place a loose tion don such is any union of farmers m mist be at best cannot be so abbl and pro atly controlled as a great corporation the one is a I 1 im bering democracy demo crac ind the other an agile plutocracy lut in tl e second place with all possible power of organization the farmers succeed to any greit extent or for ai y consider considerable ible length of time in fixing prices the great greit la v of supply and den and orbs in various arlous and surprising ways to the undoing of the best laid plans that attempt to foil it in the tl ti ird place their power will avill av ill the farmers nothing if it be at used in our tim time and country Is of value alue to its possessor only so long as it Is not abused it Is mir to say that I 1 I 1 lave a e seen no signs in responsible quarters of a d position to dictate prices there seems on the contrary to be a commonly beneficial purpose to realize a stability that will vill give an orderly and abundant flow of farm products to the consumer and ensure reasonable ind nd dependable ite turns to the producer in view lew ct of the supreme importance to tie tl e national nati nil well beng be ng of a pros berous and contented agricultural population we ue should be prepared to go a long way in assisting the farmers to get an equitable share of the wealth they produce through the a tion of reforms that will procure a continuous and increasing stream of farm products they are far from get ting a fair share now considering his capital and the long of labor put in by the average firmer farmer and lila his family he Is remunerated less than any other occupational class with the poss ble exception of teachers rell alous and lay though in we e kno v tl at tie present gener general il distress di of tie farmers is exceptional and is linked the inevitable ible economic readjust ment fol folio loving ving the war var it must be ren that although represent ing one tl ir I 1 of the ind estrial product and I 1 aalf air the total population of the nation tl it e rural communities oral harily enjoy but a fifth to a i quarter ol 01 the net ann lal ial national ga n stand ng tl e taste of prop prosperity erity tl it at tl tie e farmers had during the in viar ar there Is today a lower standard of living among tl e cotton farmers of tl ti e south han ban in any oti er pursuit in the country in 1 it seems to me tl ti at tl it e faro farn ers are cl lefly striving for a gen brally I 1 enerle il it integration of theli thelt business of the same kind and char character te flat tl at oti er business enjoy if it should be found en cn examination that the attainment of tl it is end requires methods different from those wa al 11 other activities have follo followed NNed for the same purpose should we not consider the plea tor for the right to operate cooperate if only from our out own enlightener enel self interest in db ob an ab indent and teady flow of farin ani products in examining the agricultural il situa tion with a view to its improvement w i e shall be most I 1 helpful if we main tain a detached and judicial viewpoint kemem remembering bering that existing wrongs may be chiefly an accident of cal eat economic growth instead of it a crt eri tion of n malevolent ale design and conspire con spira cy we americ ins are prone as professor david fiedl fildie avell davs a s in its t la admirable bo b k MOM wages and prices to seek a criminal intent bei ind every en ery difficult and undesirable economic I 1 can positively as sert from my contact with men ol 01 I 1 birge irge affairs affair including I 1 tal ers that is i 11 whole tl it ey are eddei endeavoring to fulfill us tl it ey see them the obligations tl ti at go with tt it air po ver N er I 1 ta tie e gri grave e pi beems and I 1 leauv ean v tasks of their onn Imm mined edite ate affairs they I 1 a ave e i ot turned the r thourl taul ceroi al it atte tion or their construe the nl at lit es eq to the deficiencies of agri cultural I 1 us ness oiga agri culture it n ay be so si d suffers from their and neglect rather rither tl it in fron a y purposeful exploit iti n by then the ii 11 1 I I 1 ey 0 igl i 1 t now to begin to d to tie timers difficulties wl 1 tl I tl it ev must realize aie tl it e r own on tl it e ot er I 1 in I 1 i i y con contic tits ts NN with iab tl it e fi ners I 1 iv ine e filled me nith respect foi for tl it e ii n for tl ti air sanity their pa t pice ence tl it e i i balance NN in tie lasi last veir ne ir and at it a meeting billed bv by tie tl e bans kansas is state board of ag i iti lit re ii 11 d at ii 11 other called allied ty I 1 y the con i ii i atee of se seventeen Seve ei teen iteen I 1 I 1 lave ni e net diviny f the of the ne nev f r rn n won novel ei e t and I 1 testify in nil till qi ilic erity tl it it they ire oi ing to deil ded de d iv 1 I ith tl gieir air p I 1 lems not dot is promoters of a i ir 0 v class fi ri terest not as exploiters of the I 1 ai at les less consumer not as i nei aei ciless in i but a ho est i nent bent on the anil ron ameni of the co tim n v ni eal eat iv we e can ind mist n meet s ich n er and such a cause halt half w A ly lie IT PI business us iness N 1 u b iciness the u 1 I 1 u IN |