Wisconsin Dairymen's Association / Forty-first annual report of the Wisconsin Dairymen's Association : held at Ashland, Wis., December 10, 11 and 12, 1912. Report of the proceedings, annual address of the president, and interesting essays and discussions relating to the dairy interests
Sanborn, A. W.
Co-operation among farmers, pp. 95-101 PDF (1.6 MB)
Wisconsin Dairymen's Association. product one day and small the next can not be economically handled. Upon the organization of any cooperative society, those who are interested in making it a failure, immediately get busy. They approach each member trying to start dissension, offer hiur higher prices for his product than the society pays or can pay, or the market warrants, until member after member, through one means or another, is induced to desert, the society so crippled that failure for want of support is inevitable Then the victims are left to be preyed upon as before. This has caused many failures and experience has taught that in self preservation, it is necessary to hold the members together by a complete contract to furnish their entire product for a fixed period, which period should be of sufficient duration to, enable the society to demonstrate its usefulness to the mem- bers and defeat the efforts of its enemies to destroy it. Second: In cooperative societies, that each member shall have an equal voice in the management. The holder of one share should have the same force as the holder of many shares. The control must not be in the large shareholder. Otherwise the large shareholders in a successful plant may be able to see more profit to themselves as individuals by turning over to themselves as private owners and manage with that end in- view. Third: Profits must be divided according to product fur- nished and not according to the money invested or number of shares of stock held by each. In business corporations, profits are divided upon the basis of the amount of capital invested. If a corporation with a paid up capital stock of $10,000 makes a profit of $2,000 that is 20% -a dividend of 20% is declared and paid to the shareholders. If Jones has $100 worth of stock he gets $20 and if Smith has $1,000, he gets $200. This is considered fair as the money in- vested made the profit. In cooperation this method is consid- ered unfair. To illustrate, in a cooperative creamery with $10,000 capital, Jones has $100 in stock and furnishes the prod- uet of 100 cows; Smith has $1,000 in stock and furnishes the product of 10 cows, quantity and quality from each cow being practically equal; $2,000 profit is made. This profit is made out of the cream furnished. Jones with his $100 in stock and' 99
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