Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-02-03

The Undertaking of which Ex-Con.
gressman Otis of Kansas f. the Head.
? of The Evening Star.

Special Correspondence of The Evening Star
TOPEKA, Kan. Jan. 80 1894
Ex-Congressman John G. Otis is at the
head of the latest business cooperative en-
terprise in Kansas. The name of the or
ganization is the Exchange Company of
Topeka" The capital stock is 100000. ana
tie objects for which the company is form
ed. as set forth in the charter fled with
the Secretary of State, is TO advance the
cause of cooperative education among all
classes of society, and 20 10 any and all
things that may be needeul 10 carry these
objects into successful operation: to buy
and sell produce and merchandise OF all
kinds and to receive on deposit farm pro-
ducts, manufactured articles ana money.
for which receipts of The company win be
given
The fling of charters of this character in
the office of the secretary % state was.
three or four years ago. an everyday &C.
currence. AT that time the Farmers Al.
lance and Industrial Union had a men,
bership in Kansas OF l:oa0. ana It was
spreading the doctrine of co-oper3tica with
remarkable success. Eek change stores were
established in every CITY, village. Eamiet
and crossroads. Exchange elevators we're
constructed and exchange companies FORM
ed to buy and sell grain. The principle Of
cooperation among farmers threatened TO
drive country merchants. -nil.ers and grain
dealers into bankruptcy. The members OF
the alliance religiously bought shares in
the exchange companies and boycottei the
regular merchants. The ,lrmers felt them
selves competent to :ra1Sact al their own
business and save to themselves all Of the
profits of the middle men. They We're gong
to do away with merchants ana grain h,4y-
ers- Unfortunately for then they did 90.
realize that merchant, in order ID be suc-
cessful. must know the secress of trade,
must know when, where ana now TO rug.
The result was that the inexperienced men
We're placed in charge Of the exchange
stores. The institutions We're not managed
on business principles, and consequently
were not prosperous soon exchange COM
pany failures We're Of daily occurrence, I'M
iii now fully ~ per cent CT the thousands
of exchange stores established in The state
are out OF existence. They have either pe-
come bankrupt or were closed out by the
stockholders when they were found TO he
operating at loss. Farmers who cook
stock in them lost heavily, and the prin-
ciple of cooperation received a great get
back.
Then Cyrus Corning starred mis- iaLor ex-
change, the principles Of Witch have been
fully discussed by the press generally. IL
differs from the old alliance exchange n
that IL requires little or capital 10 con-
duct an extensive bu siuess instead OF Law
ing cash to patrons for their products it
issued labor exchaa axe checks. which were
accepted at the store Tor goods and were
used a circulating medium in trade and
barter between people VINO mad confidence
in the scheme
This plan is made a part Of he scheme
of eX-Congressman Dtis' company which
combines the principle ~ the 'abSr ex-
change and the old Farmers Alliance. As
Mr.. Otis and his associates have abunda..t
capital and are succe ssful business men.
the new company VIII give she' prciec. a
thorough test and determine its practically
fly.