| Show rid Corp orp col o l dark darke Marketing wool Woo Market Market- e National I b lithe g grower grower controlled k a Nu e organIzation m mp t ed of of approval of the p the and with Its Itse h Board far Farm the theof to carr carry e talK k of f Agricultural cultural Marketing I m the Ih wrol industry JIll rW It doi do I market market- age ow only In the fIl 4 What does organized a It or n u Si to achieve da Kon 1 National adonal Wool Marketing Corp- Corp C In the sail JIll aid wool wool growers orderly and satisfactory lt t of their woo wool ap 1111 It do dell s the existing wool considering w a In the methods In this country j Urn farm Board observed that u cent of the clip was pan 10 per oper co-oper- rifled died by thirteen This volume aptel apy ap- ap t b associations tel tell y po pounds wast was market et by six sixt I j on the ma t n organizations A big factor eDen eDena cent t and sa saUs satis- a gW fw-gW b 5 about out ut orderly be bed marketing will tool sool T with d through doing away competition which has develop- develop ti grower controlled agen agencies les 0 among of grower-controlled grower fling Is the dominant note of oft t corporation Rut nat win nil become of the wool co- co 9 lives lees already In to l a 11 li k believed that all an existing wool tog ting organizations will become Wed ted led with the National Wool a j g Corporation Is U orderly and satisfactory Mating at I Under UDder the existing wool market market- r system the bulk of the United i dip clip has hu been marketed with with- i 0 W to DO 90 days Much of it has hasi i contracted on the sheep's back backor backa a or or months before shearing s the entire years year's supply of wool t out of grower control with with- u i t comparatively short time Wool Wooli i developed the wool-buying wool 1 in a highly speculative manThey manThey man- man r. r They bought the wool as cheap- cheap putney u they could and when they had hadi i under UDder control it was possible 19 them to to gradually feed it out to the mills mUs with the result that prices usually showed greater strength and stability after I the wools had passed into dealers' dealers hands handa The National Wool Marl Marketing Corporation win will have under its control enough wool to be a strong influence on the mar mar- ket It will handle hardle the wool In an orderly manner only the benefits from the trie system will wUl go to the grower grow grow- er of the wool rather than the trader trader trad trad- er in this commodity By exerting this influence on the market the Corporation will wUl be an Important factor in giving the producer full ful value for his wool Wool Is the most adaptable agricultural tural commodity for foran foran foran an orderly marketing program Q What is full Value A. A Pull Fun value is the foreign market price on wools of comparable grade gradeI I plus the tariff less the difference in condition The National Wool Growers Growers Growers Grow Grow- ers Association long has contended that if th the growers controlled through a central selling agency enough woo wool to be an influence on the market the tariff would be more fully ef ef- ef Q What quantity of wool is necessary to be a factor on the market A. A The Federal Farm Farin Board estimates that if a central sales agency for any commodity has under control 20 to 25 per cent of the output It can bea be bea a strong factor In market price stabilization Q Will the National Wool Marketing Corporation have this much wool A. A That depends entirely upon whether the wool growers of the nation support support support sup sup- port the plan as they should The goal of the Corporation is pounds The Corporation could do some good for its Ita members with 50 pounds but could do a much better Job with twice or three times that volume Q Who formed the National Wool Marketing Corporation A. A The Federal Farm Board called to Chicago October 4 4 1929 representatives tives of all existing cooperative wool marketing associations The attendance attendance attendance attend attend- ance at that meeting represented growers ool-growers growers affiliated with cooperative agencies These growers produced about pounds of wool last year An organization committee was WM appointed at that time Ume to work I In l conjunction wit with the National Wool Growers Association Association tion Federal Farm Perm Board to wor work out a national wool marketing pla plan for tor submission to the growers The Th The marketing plan was approved at a meeting of or the temporary Board o of Directors at San Angelo Texas November No No- vember ember 19 1929 The plan was the then submitted to the annual convention of the National Wool Growers ers Association As As- and representatives of cooperative cooperative co co- operative marketing asso associations association where it was as approved The Corporation Corporation Corpor Corpor- atlon was as organized by a board of 1 15 temporary directors Q Who are these directors A. A The personnel of this temporary board is as follows L L. B. B Palmer President Ohio Cooperative Wool Woo Growers President of the Corporation Corporation Corpora Corpora- tion Roger Texas Sheep an and Goat Raisers Association VIce dent J. J B B. Wilson Wyoming Wool Woo Growers Association Sec F F. J. J Hagenbarth President National Wool Growers Association A. A A A. Johns President Arizona Wool Woo Growers Association R R. E. E Jones Minnesota Wool Growers F. F w w. Lee President New Mexico Wool Growers Grower J. J H. H Lemmon South Dakota Wool Growers J. J A. A Hooper Utah Ulah State Wool Growers F. F H H. Wagar New York Wool Growers Murray E. E StebbIns Montana Wool Woo Growers Association J. J H H. Peterson Peterson Peterson Peter Peter- son President California Wool Woo Growers Association R. R A. A Ward Manager Pacific Cooperative Wool Woo Growers F F. F O. O Landrum representing represent represent- ing Texas mohair producers F F. R R. Marshall Secretary National Wool Woo Growers Association Q Where does the Corporation maintaIn maintain maintain main main- tain headquarters A Temporary offices are at Trans Trans- portion Building Washington D.C. D.C. D D. C. C Permanent offices will be at 28 Summer Street Boston Mass Q Are the present directors permanent A NoThey may be retire as rapidly as member units subscribe to stock Inthe in inthe inthe the national Corporation which gives them the right to elect directors direct direct- ors of the the Ii own choice Q Can a grower send his wool 1 to the Corporation and have it sold A A. A No The Corporation does not deal dea directly with the grower To take advantage of the Corporations Corporation's marketing facilities a wool producer must Join a cooperative marketing organization which is a member o of the national Corporation Q How does an association become a member in the national Corporation Corporation Corporation Corpor Corpor- A. A It must be organized as a cooperative cooperative cooperative tive qualifying under the Capper Capper- Act and must have hae handl- handl handled ed at least pounds of wool last year or have this quantity under un under under un- un der contract for the coming season Q On what basis is stock bought A. A The National Wool Marketing Corporation Cor Cor- Is capitalized for which represents shares of stock with a par value of per share A member association subscribes subscribes subscribes sub sub- scribes to one share of stock for each pounds of wool or major fraction fraction fraction frac frac- tion thereof Thus for each 1000 pounds of wool subscribed the member member mem mere ber association must buy in capital stock Stock may be purchased purchased purchased pur pur- chased for one-fourth one down and the remainder in three annual installments installments installments install install- ments with Interest at 6 per cent per annum Q What relationship does this set up between the individual grower and the National Wool Marketing Corporation Corporation Cor Cor- A. A The Individual wool-grower wool signs a contract to deliver his wool to his local association The local association association association tion In turn signs an agreement to deliver the wool 1 of all members of that association to the National Cor Cor- The Individual grower has his vote In his local association and elects his representative to the Board of Directors of the National Corpor Corpor- atlon Q What sort of contract is used A. A The contract for the individual wool grower Is the same as now used in this country by wool cooperatives It Is a continuous contract which provides provides provides pro pro- vides a certain period each year when growers may withdraw from the Corporation It carries a 1 cent penalty clause If the grower pledges his wool and then falls lo to deliver it he agrees to pay his association 1 cent per pound Q On what basis will voting be done In the National Corporation by the various units A. A Voting will be according to quantity of wool represented one vote for each pounds Q What will the Corporation charge the grower to handle his wool A. A Handling charges in original bags will be 2 4 s to 4 23 cents per pound In original bags lots of over pounds will be charged 2 cents per pound lots of under pounds 4 23 cents per pound Where grad- grad v ing Ini Is found necessary additional charge of 4 10 cent per pound will wil be assessed 9 Q What hat will be done with this money A. A The Corporations Corporation's selling agent a at Boston oslon receives 14 cents per pound poundon on wool in original bags and 18 cents cent per pound on graded wools woos In addition ad ad- to these charges 14 cent pe per pound Is charged where IndIvidual lots Jots are less than pounds t cent goes to the State or regional as association as- as Sedation and 35 cent goes to the National Wool Marketing Corporation Corporation Corpora Corpora- tion a part of which will be used to tc pay the expenses of the Corporation and the balance set up as a reserve to repay loans made by the Federal Federa Farm Board for organization and capital purposes Q Who will sell the wool A. A The Corporation has arranged with Draper Company to serve as exclusive ex exclusIve ex- ex elusive selling agent Q Why was a private wool house chosen A. A It was as felt that the interests of ot the growers would be served better by affiliating with l an established woo wool selling concern rather than to develop de develop develop de- de hurriedly its own sales agency Draper Company has for the last las two tI years been the largest woo wool house in Boston handling more than pounds of wool last year nearly twice the quantity held by alof al all all of the cooperative associations InthIs in inthis inthis this country For the 14 cents pe per pound the Corporation will pay Draper Company it will receive the the services services of its entire organIzation organization organization tion sales force at Boston BOton and field staff Draper Company will not handle any wool on its own account except not not to exceed pounds of ot foreign wool in any anyone one year it being necessary to handle a certain proportion of foreign wool in order to correctly gauge the wool markets abroad Q Who fixed the selling costs A. A Experience has shown that it costs at least cent per pound for local or regional associations to se secure secure secure se- se cure and ship the wool In some places where the wool comes in very small lots this expense will 1 be doubled ed The must set up from its earnings a reserve fund from which to repay the Federal Federa Farm Board the amount of ad advances advances advances ad- ad vances it has haa made For example the Farm Board has advanced the National Wool Marketing Corporation Corpora Corpora- tion with which to capitalize capital capital- ize a credit corporation so that the credit corporation can discount with the Federal Intermediate Credit Banks shearIng pre advances on wool The Farm Board have also loaned the Corporation some funds for organization e expense pense and these loans loan must be repaid It is hoped that after a couple of years' years operation operations opera opera- tion the selling charges may be somewhat reduced Q If selling costs are reduced who will get the money A. A All money over expenses goes Into a reserve fund to be used to repay the Farm Board When the loans loan to the Farm Board are repaid and the organization has as It will then have sufficient working capital any earnings will revert to the grower In Inthe Inthe Inthe the form of patronage dividends In Inv Inas Inas as much as all of the stock in the National Wool Marketing Corporation Corporation Corpora Corpora- tion Is held by cooperative marketIng marketIng marketing market- market Ing associations association which cooperative marketing associations are in turn owned by their members the wool growers themselves will in effect own the National Wool Marketing Corporation Cor Cor- so that any capital capita created created created creat creat- ed will belong to the wool growers themselves In proportion to the amount amount a- a mount earned on each pound of wool Q As it will cost the grower approximately approximately approximately the same to handle his wool under this system as when he consigned consigned con con- signed to private dealers what are areUs Its Us advantages A. A The principal advantage Is that by securing a sufficient volume to be bea a factor In hi the market the Corporation Corpora Corpora- tion will 11 be able to secure for the grower the full value for the wool and will at the same time be developing develop develop- ing a strong national which is interested first in the welfare welfare welfare wel wel- fare of the wool growers because itIs ItIs it itis is owned and controlled by wool- wool growers Q What advances will be made on wool A. A A shearing pre loan of ot not to ex exceed exceed exceed ex- ex per fleece will be made to members of any cooperative marketing marketing marketing market market- ing organization when their organization organization anon is a member of the National Wool Marketing Corporation When the wool Is delivered a loan up to 90 per cent of its estimated value will be bs made All loans made by or through the National Wool MarketIng MarketIng MarketIng Market- Market Ing Corporation will wUl draw 8 per cent Interest Q How will the value of the wool be determined A A. A The National Wool Marketing Corporation Cor- Cor Cor- Cor through its constant observation observation observation of wool market conditions is in an excellent position to estimate the value of woo wool Representatives of the National Wool Marketing Corporation Corporation Corporation Cor Cor- the selling agents of Draper Drap Drap- er Company representatives ol ot of the Farm Board and the U U. S 8 S. Department Department Department De De- of Agriculture will twill from time fix basic prices on wool and itis ItIs it itis is upon these prices that the advance of 00 DO per cent will be tirade made made Q Where will this money be obtained A. A Of the 90 DO per cent loan 65 05 per cent will bet bel obtained through the Federal Intermediate Credit Bank The Federal Farm Board which does not make primary loans loan will make a f secondary loan of 20 to 25 per c cent nt Q When can the grower obtain this thin 90 per cent loan A. A As soon as his wool is delivered Q What does the Individual grower do with his wool A. A Delivers Jt it to ills his local association Q Can a local association sell cell any wool A A. The National Corporation can authorize a local to sell wool if such procedure e would be to the best in interests interests In- In teresta of the Corporation and the grower Such authorization however however however how how- ever will not be frequent Q Where will the wool be stored A. A Most of the wool will be stored near the consuming centers which are Inthe in inthe inthe the New England area The Corporation Corpora Corpora- tion will wUl take advantage of storage- storage |
