The herald., 1896-02-02
COOPERATIVE FARMERS
JAfl35 T. VAN RENSSELAER,

| perlment3 i'll cooperation which have
of late been carried out in the southern
! portion of the state. The first of these
WAS undertaken by the Compton Co.
operative association, organized al
| Compton, a small town about twelve
miles southwest of Los Angeles, the
other by an associat ion recently formed
at Failbrook, little village in San
Diego county. The causes which led
the people to form the two associations
were Identical The local storekeepers
in both places had availed themselves
of want of organization among the
farmers, and of the fact that major
ity were in their debt, to make charges
far in excess of what they had any
right to do. or of what their unfortun-
ate customers could afford to pay. 1t
was this greed and extortion, for no
other WORKS can fully describe it, that
at last forced che farmers into spirited
opposition, resulting in the two CO.
opera i've stores whioa aim to furnish
tue necessaries of life at a small per-
ceutage above cost.
uc OOuI PUN SlOES. Woo tho
first to come into existence, opened its
doors to the public about four years
ago. Prior to that time the people of
the locality we're paying 20 per cent
more for their purch ases than there
WAS any need, and 1T Was the exception
to find farmer in the neighborhood
of Compton free from debt. AS a
means OF stopping the extortion and of
10 a
dozen of the more enterprising citi-
zens subscribed $50 each making
total of 500, with which comparatively
small sum they opened q cooperative
store. the success was phenomenal.
From dozen members the association
grew to nearly hundred, though suc-
cess becoming positively assured, and
having other uses for their money,
many afterward withdrew. The shares,
however, which, by the way, are limited
one to each individual are now placed
at $1,000 instead of $50, as was the case
in the beginning AS the best evidence
of prosperity it may be said that the
volume of business has grown so rap
idly that out of the small percentage
put aside to cover expenses, the direct
ors each year have been enabled to de-
clare very considerable dividend, and
this desp ite the efforts on their part to
put the estimates 30 low as to preclude
any possibility of the store being
worked at profit.
The Compton Cooperative associa-
ton is therefore made up today OF
thirty-eight mem bers and has an act
ual paid up share capital of about
$4,000. 10 this must be added sink
ing fund of $1,000, which would make q
total of $4,000 hard cash represented
in the undertaking. The greater part
of this ia invested In land, in a large
and spacious building, in consider.
able stock and in the good will of the
business. This in 1894, earned suf-
ticient sum to permit the directors,
after adding per cent to the sinking
fund, to declare a dividend of 16 per
cent. 1t must be nsticed that this
means total profit for the year of q
per cent, an excellent showing for any
organization, cooperative or other
wise, and coming from store owned
| by farmers and managed by them
selves, it may be considered a matter of
great encouragement to agriculturists
| generally. This store is of course run on
the principle of quick sales and small
profits, and it does business entirely
on cash basis. 1t affords constant
employment to five men and derives
its custom from people over very
| wide area.
As direct and immediate result Of
the opening of this store the cost of
commodities was reduced % per cent
all around, a sum probably represent
ing more than quarter of the gross
profits of the local farms. This saw
ing 80 encouraged and changed the
general condition of the people that it
! is now claimed the exception to find a
Compton farmer carrying burden OF
debt. 1t must not for one moment be
imagined that this altered condition
was brought about in day, but it is
said that very marked change might
have been noticed before the end OF
the first twelve months. AS an indi.
rect result, the town itself has become
trade center. AS soon as a genera
rumor got abroad that Compton pos
sessed a store selling goods at greatly
reduced prices, farmers hooked there
in large numbers from all directions
in some cases coming distance of q
miles. AS consequence, instead o.
driving it's rivals out of business, Other
stores have sprung up to meet an in
creased demand, 80 that now the farm
ers of the locality have not only an op
portunity of dealing at their own in
stitution, but also Of buying at equal!
low prices of rival establishments
Farmers generally should therefore
keep in mind that the effect of thu
pluck and perseverance of their breth
rem at Compton has brought prosperit!
to whole region and has served tt
make that settlement one OF the mos
fiourishing in Southern California to
day.
The other successful experiment wa
carried out at Fallbrook, a small farm
ing community about sixty miles nortl
of San Diego. The total number o
persons trading at Fallbrook, including
men, women and children, would prob
ably not exceed 600, certainly not 80
people all told. OF these 3O0 inhabi
the village, half of whom at least liv
off the labor of the others. Up to tn
lst of August, and for four years, owin
to washout in the Temecula canyon
on the Southern California railway, tn
people had no railroad communicate
nearer than sixteen or twenty miles
except for three months in SIMMER
when a temporary line was built t
within seven miles of the village. Th
store keepers availed themselves of TIL
unfortunate situation, and clalmin
that the increased cost was entirel
due tO freiphti goods go long dis