129 



everywhere. They go right out into Africa and get rubber 

 at the source at wholesale and bring it to their manufac- 

 turing plant. They don't charge a retail price on that, at all. 



Farming is a great manufacturing plant, and its raw 

 material should be gotten to the farm at wholesale. As far 

 as the Eastern States Farmers' Exchange is concerned we 

 will deal with wholesale prices through the local exchanges. 

 Then it is up to them to work out that matter of selling it to 

 their own members. We are a non-profit, non-stock com- 

 pany. "We are doing an interestate business, and doing an 

 interestate business we have to be on a non-stock, non-profit 

 basis. We will try to bring to these local exchanges the raw 

 materials at wholesale by going back to the very sources of 

 production. 



MR. WHARTON: My suggestion was in relation to 

 local exchanges. 



MR. SCHEUERLE : Yes, that is a matter for the local 

 exchange to work out. I haven't thought into that enough 

 to give any opinion. In Hampden Covmty we simply offer it 

 to the farmer at the prices that they can get it. 



THE CHAIRMAN: Cost, plus a certain expense, 

 enough to cover doing business. 



MR. SCHEUERLE : Wo do not put on the retail price 

 and give a rebate on the price there, at all. That is a matter 

 for people who are better versed in local economics, than I 

 am, to handle. As far as the overhead organization is con- 

 cerned in which I am particularly interested, that will deal 

 with wholesale prices to the local exchange. I presume it 

 would be a good idea for the local exchange leaders to get 

 together. Perhaps that would be one thing for the Eastern 

 States Farmers' Exchange to do, — bring them together and 

 discuss that very item. 



MR. MUNSON : I should like to ask how this exchange 

 is being financed, Mr. Scheuerle. 



MR. SCHEUERLE: The Eastern States Farmers' Ex- 

 change will be financed entirely on the percentage basis, say 

 one per cent. That is simply operating at cost. 



