The Nonpartisan Leader Newspaper, February 7, 1921, Page 6

[ S "BY E. B. FUSSELL ] ORTH DAKOTA farmers taught the rest of the United States that they knew how to stick together in politics. Today they are also teaching the rest of the country that they know how to stick together in one of the biggest co- operative enterprises in the nation. In a warehouse at Fargo rests 50 per cent of the wool crop of North Dakota, some 750,000 pounds. It is held under the direction of the directors of the North Dakota Federation of Wool Growers’ associa- tions, chosen by the wool producers themselves. The consignors will attempt no individual sales. They have said to their directors: “Here is our wool. Instead of competing against each other to sell it in small lots we are turning the lot over to you to be sold as the market allows.” The state wool pool of North Dakota is an out- growth of the co-operative spirit of the farmers of that state. In past years there have been county pools. The county pool movement started in Cava- lier county in 1917 and spread to other counties. It was a more convenient and a more profitable way for the wool grower to sell his wool than to take whatever price he might be offered by a traveling wool buyer, junk peddler or agent for a wool com- mission house. 5 As late as June 1, 1920, there was nc idea of adopting a different method for handling the 1920 wool clip. But, even in advance of the drop in wheat prices, the price of wool threatened collapse. It slipped at first and then dropped with what fancy writers would call “a dull, sickening thud.” It was an extraordinary condition. No wool buyers were in sight and growers in North Dakota were prompt to see that the expedient of county pools would not be enough to have any influence in the face of a world-wide decline. WOOL MEN GET LOANS ON WOOL HELD IN STORAGE The only solution seemed to be organization of a state pool and storage of the wool until the buyers returned to the market. A meeting of the wool men was called at Fargo. It was explained that by organizing a state pool and storing the wool in a central warehouse, loans could be obtained upon it so that the farmers could afford tc hold for a better market. The suggestion caught like wildfire. The North Dakota Federation of Wool Growers’ associations was organized. Notice -was sent out to the counties that had Wool Men Get “That Sticky Feeling” ‘How the North Dakota Wool Pool Came to Be Organized and What Is Being Dong With It ‘ Some of the sheep that produced the wool in the North Dakota state pool. What the wool producers of North Da- kota are- doing all farmers of the United States can do when they learn the “We’ll Stick” slogan. What the farming industry as a whole needs is just what the wool men found neces- sary and got— (1) storage facilities under their own control and (2) loans upon their product, so they are not forced to sell to the first bidder at the bidder’s price. / county pools that their pools could be consolidated in the state pool and-that in counties where no coun- ty pools had been organized individual consign- ments would be accepted. J. W. Haw, assistant county agent leader, was chosen as secretary-manager of the wool pool. Haw laid the facts directly before the wool growers. He told them they faced a world-wide decline in wool prices. It was up to the'wool men to decide whether they would attempt to meet conditions with a state pool. If they did get into the state pool they would have to show the same “We’ll Stick” spirit that they had shown in politics to make it a success. “It is a significant fact,” said Mr. Haw in a bul- letin to the wool producers, “that farmers must be squeezed pretty hard before there is juice enough to make them stick together. The juice has surely been raised on the wool growers this year and it Receiving the wool in the wool growers’ warehouse at Fargo. T N e 8 A O AN o e o s A s b o et I e e PAGE SIX seems to be very sticky juice here in North Dakota. Let us’see that it holds.” There was no doubt about the response of the wool growers., Wool began pouring into Fargo from every county pool and from individual con- signors. By December 1,272 individual farmers had consignments in the pool. Minnesota wool producers learned of the North Dakota pool. The authorities of their state, in spite of their pretended interest in co-operation, had made no local arrangements for a state pool, so the growers asked if they might take part in the North Dakota pool. ; “Come on in, the water’s fine,” said the North Dakota wool growers, and the Minnesota men sent their consignments to Fargo. In December, while consignments were still be- ing received at the Fargo warehouse, grading of the wool began under the supervision of a crew of expert graders of known ability, hired and paid by the federation. Right here the North Dakota wool producers began to realize the advantages of their state pool. PRODUCERS FIND THEIR WOOL WAS BEING UNDERGRADED County pools in North Dakota in the past had disposed of their wool through commission men, who graded their product. The county pools were not large and strong enough to be able to engage experts to do their own grading. Consequently they had to accept grades placed by the buyers, just as North Dakota wheat growers had to ac- cept the grades of the wheat buyers before they organized politically and established a state grain grading and inspection department. The principal wool grades into which the North Dakota product falls are known as “fine and fine medium,” “% blood,” “3.blood,” and “% blood.” These grades correspond roughly with No. 1, No. 2, No. 3 and No. 4 in wheat. Pembina county, which had one of the large coun- ty wool pools in 1919, sold two-fifths of its wool as “34 blood” and only one-fifth as “34 blood,” the next grade higher. The Pembina county wool is prob- ably typical of the wool of the state. This year, however, the graders of the state pool have found, so far as they have gone, that the pro- .portions are just reversed. Only one-fifth of the wool in the state pool is taking the low “% blood” grade, while two-fifths of the wookis taking the higher “3% blood” grade. This means that one-fifth - of the Pembina county clip last year was graded at least ‘one grade too low. The difference in price between “% blood” and “3% blood” was between 6 and 8 cents in 1919 and a difference in price of from 4 to 6 cents exists this year, in spite of the lower market for-all grades. N The wool in the North Dakota pool is now being offered for sale direct to mills and mill representa- tives. Ever since June wool has been dropping in price and as this is written it is not certain that the end is in sight yet, although indications are that the bottom has been reached. There is an immense - stock of undigested raw wool in the country. - Woolen mills have been running on half-time schedules and to a large extent have been using shoddy and foreign wool instead of virgin domestic wool for material. But there are beginning to be indications now that a turn in the tide is coming.