Fergus County argus. [volume] (Lewistown, Mont.) 1886-1946, 1904-03-23
DOES BIG BUSINESS.
Iowa Farmers COOPERATIVE Associa-
tion Confronts a Problem.


Webster City. Iowa, March IT,
The Farmers Cooperative company
OF Rockwell City. has a knotty prob.
lem to solve. This company is com
posed of all the farmers in the ter
ritory contiguous 10 Rockwell City,
Since the formation of this company
six years ago its members as a com.
pany have sold all their produce and
through a sort of a company store
have purchased the most of their
goods at retail prices.
The problem which the farmers are
now called upon to solve is the mat
ter of the continuance of this store,
The merchants of Rockwell City are
strenuously opposing il, claiming that
il ultimately will break up the town
The enormity OF the business oI
This store may be judged from thu
fact that since ius inception the farm
cIs in the cooperation have done an.
rually 5000 0U worth OF business
that is. have purchased outright that
much for their own use, exclusive OF
making the sales of all produce and
stock Of the individual members OF
the concern. Strange to say. how
ever. the association has done all this
at a cost OF / per cent and has a sur
plus of $4,000 on hand.
There has been considerable dis
cussion among the members the pas
year. which in some instances has
been construed into a threatened rup
ture OF the policy of the management
in handling clothing. boots and shoes
Originally the association bought
grain and stock and sold only Goa
and lumber to its members. Ther
there were added farm implements
and hardware. Then came binding
twine. barbed wire, -four, feed, sugar
and other staple commodities. Grad
ually rough garments like Overalls
and blouses and pillow shoes were add
ed to the list.
This year clothing. boots and shoe.
were put upon the list. The lattel
at once began TO be handled in sucf
quantities that the Rockwell City
merchants began TO feel the loss o.
the trade and protest was made.
The merchants clair. that the farm
ers are not charged an e~Xorbitant
price for these goods and that If the
policy of the cooperation in running
its store for the benefit of its mem
bers is continued it would mean nj
timately a department store, which
would sound the death knell of thu
town.
Instead of a prosperous town of /,
600 people the merchants insist tina
the town will become a mere railroad
station with an elevator and a biz
store. The farmers board of directors
held various meetings and discussed
these questions long and earnestly
but with the best of feeling.
A resolution TO abolish the sale o
clothing, boots and shoes, was lost
however. or late, though. there ha.
been a disposition to make these
staples less of a feature and the mat
ter has been left to the new board
while the merchants will have to fee
satisfied with the feeling which the!
have developed a~ntagonistic to pur
suing the sale of these things eXcep'
in a small way.
When ii is known that it costs onl,
about $3.50 to handle 100000 worth
of business, or less than l per cent
II can be seen at once what the Rock
well City merchants are up against
The auditing committee has report
ed a surplus of $4,000 this year, al
increase of $4,000 over last year. Gu
of this surplus a dividend of sl3 PEI
share has been declared which is 13'
per cent, or over 10 per cent annu
ally. as this is the first year tina
a dividend has been paid out of thu
surplus.
Many of the farmers cooperative
associations have sprung up in low;
OF late years, but the Rockwell Cit.
association is the first to reach tn
octopus class.