The representative. [volume] (St. Paul, Minn.) 1893-1901, 1895-03-13
COOPERATION.
What Farmers Could Accomplish If
They Would Work TOgether-A
Flatterfng Outlook.


To the Editor:
NOW and then some correspondent to the
Represe NATIVE tells us farmers that it
would be to our interest to cooperate in
business and save money by so doing. 1
have been anxiously waiting for some of
tnese writer's to give us some details in
the way of mapping out the work, so that
we might form some correct idea of the
system and the benefits to be gained by
adopting it.
Cooperation for mutual benefit may be
well understood by very few farmers,
but n1nety-nine out of hundred of us
probably do not know enough about the
system to form anything like a correct
idea of it's benefits, and these 1 think are
willing, and some, at least, anxious to
learn l do not feel competent to give full
details IN the matter, but will, however
give few points as they have
those more competent will take up the
question and make it plain and full, so
that all may become interested in it, Twen-
~ years experience in selling goods, in
Guiding groceries, dry goods, clothing,
boots, shoes and hardware, have given me
some knowledge of the retail profit made
on tnese goods The average profit is about
80 per cent, or was five years ago, as a
general rule. 1t is probably about the same
To-Day, for the price of goods have not
uecnned, l think, in proportion to the de-
cline in labor and cost in the manufacture
OF the goods. We will suppose that 500
FARMERS located near some town or city,
organize themselves in cooperative I'M
ION and take stock or put up capital enough
to start in a general business placing the
shares of stock at $50, each member to
take at least one share This will give
working capital of $25, 900 With this CAPT.
tai they can invest $4,000 in a grocery de-
partment. $500 in boots and shoes. $500
IN hardware and tinware, 5000 in dry
goods, $4,000 in clothing, 5000 in farm ma
chinery and implements and still have
5000 left for outfit, tools, scales etc.
Inc average farmer will trade at the
store during the year to the amount of
S4oo The total yearly trade for the whole
5oo families will amount to 100000. Now, if
we 1lgure the gross profits at 80 per cent
1t will give $4,000 as the gain. Allow 500
salary for the manager, 81, 900 for bookkeep-
er and $500 each for 10 clerks making S. 1000
ana 2,OOO for rent, taxes and Incidental
expenses, making a total expense of $40, 900
TO be deducted from the gross profit and
leaving a net gain of $4,000 for the first
years business Dividing this among the
ooo members will give to each 800, which is
pront OF W0 per cent on the investment
or $oO. Can any farmer make that per cent
OF gain by raising wheat, barley, pork or
anytnlng else? Here you can see how the
business man gets rich. Why not adopt
me same means of making money and
carry 1t out in connection with farming?
1t is not best, however, to divide this
profit of $4,000 and pay it out in dividends
to the members A good business man will
nrOfitS bo of n;
mess; will enlarge his trade and thereby
increase his profits. The cooperative So
clety must adopt the same system, and use
all profits to increase the business With
the first years gain Of $4,000 they can add
to their business drugs and medicines on
which the profits are from 100 to 1000 per
cent; also establish their own creamery
and open their own blacksmith and ma
chine repair shop and employ a timer
All these additions will add materially to
the gain for the second year. After these
are all added and in opera ton there will
be still capital enough left to open their
own bank, and they can do their own bank
ing and nsuring.
Now, let us suppose that 100 such stores
are started in Minnesota, and that each
member does his best to make the bust
ness success. Just look at the grand
total of the profit for one year, as it rolls
up to 100000. The second years profits
would be much greater than the first even
though the membership did not increase:
but it would increase until every farmer
in the community had become a member.
With the net gain for the second year the
100 stores could establish their own whole
sale house at Chicago, and also own the
largest grain elevator in the city, besides
having their grain warehouses in connec-
ton with the retail establishments, and
thus handle their own grain and produce
through their own agencies, and save all
the profits in that line. Nor would this
absorb all the capital accrued for the sec
ond year; and, in connection with the
wholesale department, some lines of manu-
featuring could be carried on, such as the .
manufacture of soap, starch, saleratus,
baking powder vinegar, and other things
that are in constant among the men,
berS.
With the third years profits, which would
no doubt foot up to more than $40, 600 OOO
the manufacture of farm machinery and
tools could be added to the business and .
the co-opera tors would be thereafter saw |
ing for themselves all the profits that now
go to make the millionaires rich. They
would no longer be borrowers of the rich
mans money, but would be in shape to
loan instead If the thinking farmers will
now apply this system to Minnesota, Da-
kota, Iowa, Wisconsin, Illinois, Missouri,
Kansas and Nebraska, and combine the
farmers in all these states in one solid
cooperative union, organized to save and
velopment of business, until they accu-
mulate capital enough to carry on all
kinds and all lines of business and manu-
facture, they will see the real, true way
to work out their own financial salvation
to absolute independence of all capital save
their own.
They can do all this, in spite of all polit-
ical parties and adverse laws. as they will
place themselves in a position to take or
reap the advantages of any law that may
be made in the interests of the capitalists
Even If we have placed the profits and
gain too high, we can cut it down one
half and still reach the results indicated
by taking a little more time.
Let me add one point more. The larger
the number of traders members of any
society, the smaller will be the proportion
of expenses. large business can be done
at a smaller ratio of expense than a small
business. And co-operators should take
this point into consideration when organ
iZing for business. Is there any valid
reason why the farming classes should
not result to this means to free them
selves from bondage to capital? And. as
it will put money in their own bank, and
for this reason appeals at once to the
selfish nature in man, is it not the easiest
way to influence and aid him to better
condition?
total saving that would result to $4,000
farmers In one year, after they had be-
come their own bankers, merchants, grain
ana produce dealers and manufacturers
allowing 10 per cent as the net wholesale
pront, 70 per cent as net retail profit on
all goods handled, and give the result in
The Representative? Yours truly.
POPULIST FARMER.
SnUCn AnVu<.u,