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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
(1913)

Sanborn, A. W.
Co-operation among farmers,   pp. 95-101 PDF (1.6 MB)


Page 99


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'
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