The sun. [volume] (New York [N.Y.]) 1833-1916, 1900-04-15

Prosperity OF tn" OrEnniza'i"n
Recently Described In 1.-THE sun."
From the 81. LouiJ Globe Democrat

From the s., LouJ Globe. Democrat.
MASON CITY, la. April 5.-What has been tho
wonder OF Iowa farmers and q thorn In tho
flesh OF grain buyers has Just rounded out lS
eleventh year Of existence. and the past year
has been more marvelously successful than any
former year.
Eleven years ago ut Rockwell. twelve miles
south Of this city. in the richest part ~ this
county. the Penthouse Brothers were coming
money buying grain and stock AMI selling
everything the farmer needed. They became
rich so fast and the farmers became 80 u.s.
satisfied that they formed a cooperative ASSOC
citation for the purpose " building an elevator,
marketing their own grain and disposing OF
their own hogs,
by agitation they interested ninety-Nro
farmers in four townships about Roc well 10
take stock In shares OF 81 each. and no man
could own more than three shares. with this
| capital an elevator was built and the business
begun. There was one provision In the consti-
tuition that has been the mains'ar OF the Imam
cial management and the bulwork against
destruction by ruinous competition. The MEM
bers were always paid one-fourth OF n cent
| more than the seller outside the society, and
the association protected itself from the
allurements OF higher prices paid by com.
peting elevators by compelling It's members
10 nay one-fourth OF n cent commission In
case the grain was sold to u competitor.
| The manager was instructed 10 give the
highest price possible. based on Chicago
| quotations., and II the CON pet'tor offered n
higher price he advised the RENDERS 10 sell 10
them ana bring their one-'onrth OF u cent com;
missioP to the treasury the i9undsrs na1
would pay all the expenses OF the manager II
not a lushel Of grain came into their elevator,
would either give the best. prices the market
would warrant or compel their com petltor TO
bay III" farmer more than The market price. 10
| the detriment of the o prtitor. the profit OF
the association and welfare OF the farmer The
result has been that the Rockwell elevators
have always paid one-hali cent to one and one
half cents higher than any other elevators IN
the, county, ana have been a source OF chiIis
and fever to the other elevator companies.
The cohesion OF the society is the marvel OF
the county, 1t was predicted that the men who
composed II, because OF diametrtcal religious
belet-. political flliations aud ractal prcIu-
dices, would not hold together more than a
year. But all these members have put nll these
and their petty ambitions aside and united I'M
swerNlngly on the platform Of best prices on
publican, Democrat, Irish. scandinavian. GER
man or American cannot swerve them from
the original idea. Twice have powerful cor
porations cndeavored to destroy them. but In
stead OF diSmaying them II has angercd them.
and they have gone q stem farther In the coop
rratiye idea. aud soil to their memhe.,s coal.
NhA'' lA'H' .ti' .AbNi Thfl'''F az VI I'm
petition OF the locaI merchants.
The experiment was founded on the theory
r rnai 'p bay ySrsie and T ihnt t ,his wss ~, h 'r : em nn,mf.
patton, The fight tor supre macy and for the
llie IT the society has been kept fresh In the
minds OF the members, and ench year the hln-
tory is rehearseA, amt the association renews
It's vows as .sacrcdly. as II AZ the altar OF It's
country or church. Every year the question =
OF low prices. and the eXhortation Ia then made
that the only plan TO escape this, bondage Is to
stick together and when q mcmber sells else.
the society. Example has. been made of a few
by expellinG them for dishonesty refusing to
ostracism the cases Of treschery have been
rare and the ~vioiators have found II convenient
to move to other loca Titles.
| Just recently the Kansas City Grain Com
pauy. which IT, now endeavorlnR TO meet tho
association prices, offered TO form a combina:
ton 70 aI,%w ', the bel farmers 70 fix the Grics q
the same price at their various elevators. The
officers thought they detected an ATTEMPT to
secure the forfeiture of their charter by COM
fused the overture. From q beginning OF nine.
ty-fve members and loss than 200 shares of
members, representing Sol shares Of stock.
From a first years business OF probably less
than 100000. the year Just closed has shown a
business Of 100000 an Increase In the past
year Of SlS5, 600. This year. too. they have
added another elevator at Cameron. four miles
south OF this city another challenge TO the Kan
FtF ~ ~ ehh III I'hE fNs ~ 49, ~
members. declared a dividend Of s0,l23 and
have asurplus Of over $1,000 in the TREASURY.
The history Of this trust IL unique. There Ia
no other Ike II anywhere. II aims OF no divi-
dends. the theory being TO give the dividends
In prices for gram. the largest seller. therefore.
getting the largest benefit. which Ia. OF course,
the most just, There are no assessments and
never a deficit. Coal. -four and the Ike are
sold to The members at a slight per cent. above
cost and to others at a still increased cost, out
the business is handled NJ SO small an expense
that people at Rockwell. for some reason or
other, can secure these commodities at a saw
Ing all the way from 10 to IS per cent. In com
parison with the prices in surrounding
towns. 1t has been charged that the reason
that this company can quote better prices
for grain and hogs and lower prices for
the few staple commodities soid il that
It enjoys special privileges from the Iowa
Central road. but X that is the cas-. II seems
strange that other roads have allowed the bust
ness TO drift away from them without giving
their own elevator men the same opportunity
10 hold Il for thom. The secret. moro reason
ably. lee in the fact that the Rockwell society
is never without a large business, that II wants
no mi1dlemen's profits and that tho money
which the ordinary elevator com any makes Is
rim ply tackled on to the market price Of the
gain. A Z Mason City, for the fret time In
y-ars. the Kansas City Grain Company, a
powerful corporation. Is quoting Rockwell
prices. and there il much interest to see IL thnt