Audubon County journal. (Exira, Iowa) 1884-1993, 1911-06-15
SAVING THE PROFITS
BENEFITS OF COOPERATION IN
JACKSON COUNTY.
Farmers Are Saving $4,000 a Year
Through Cooperative Cream
ery-Most Successful Of lts
Kind In the State.

Few people realize fully the amount
of money saved to a community or
even to an individual by properly
managed cooperative creamery. In
one community in Jackson county is
cooperative creamery that Is saw
ing from $4,000 to $4,000 year to the
farmers who patronize it. 1t is con-
sidered by travelling statesmen and
dairy commissioner, as one of the
most successful creamerfes of it's kind
in the state
In 1900 few of the most prosper
Gus farmers in the locality saw what
profits were to be made from dairy
ing. They were five or six miles from
town, which was the only market. At
the suggestion Of a few of the most
energetic, about twenty Of them met
in the school house and fixed up a
temporary organization. They soon
found out that there were plenty Of
cows to support creamery. The
question OF financing now came up.
A number of farmers gave their note
for 5000 each, payable in five years
without interest. These were depos-
tied in the bank as security, and the
money to finance the enterprise bor-
rowed on the strength Of this.
A site was secured about Is yards
from railroad switch on main
road A large hollow brick building
was put up and equipped with modern
machinery. The plant complete cost
close to $4,000.
A committee had met and drawn up
constitution and bylaws. This pro-
vided for board of seven directors,
and secretary and treasurer. The
president was elected by the directors
from among their number. The Sec
rotary was farmer living close to the
creamery, who had small farm and
could thus spare time for his new
work. He was to receive $40 per
month for his services. The presi-
dent. and the treasurer, who was the
cashier OF the First National bank
were to work without any salary.
1t Is In the plan Of cooperation that
the strength Of the creamery lies. At
month. Since. they have voted to
pay twice each month. Milk or cream
is tested every two weeks and the
amount of butter fat patron has de-
livered is computed A sinking fund
of l or 11a is set aside from each
months returns. This fund Is in
tended to be used to pay off the debt.
The running expenses are then deduct
ed The balance is now apportioned
to each patron according to the num-
Der of pounds of butter fat he has
delivered. In this way each patron
gets as much per pound for his butter
fat as the company gets for the but
ter as the overrun will more than pay
the sinking fund and the running ex-
penses
After the creamery had run five
years. there was not enough money
in the sinking fund to pay off the
debt. The bank loaned enough with
the property as security and the notes
were cancelled. AS soon as the debt
was paid, the secretary's salary was
doubled, and the directors voted them
The growth of the creamery has
been phenomenal At the start they
made about 1000 pounds of butter per
week. During the last summer a
little over 10000 pounds per week
was made. At first only So patrons
were on the list. now there are 800.
At first, only whole milk was taken
in lott Hrt
Now only cream is received. All the
cream is hauled in.
Many improvements have been
made during the ten years of opera
ton. A large ice house was built, al
most all new machinery has been in
stalled, and a barn built for the use of
the butter-maker. This year they are
starting to build an addition to the
main building. 1t will add a new
store room, a living room for the but.
ter-maker, an office and directors
room, and enlarge the refrigerator.
The money is now in the bank to pay
for this addition.
They have always been able to pay
at least 1a cent pound for butter fnt
more IMAM any OF lne private cream
cries. Sometimes this excess goes as
high as liz cent pound This is
what has pulled such an increase in
patronage. One farmers herd aver
ages about 1000 pounds of butter fat
a year. This means that he gets from
SIS to $40 more than if he had pa
tronized private creamery. With
300 men patronizing the creamery, it
means a saving of $4,000 or 5000 to
the farmers each year.
Since the organization of this com
pany, four other creameries within a
radius of twelve miles have gone out
of business. This most successful
cooperative creamery is just com
mencing its good work 1t is entirely
out of debt, and the men who patron
ize now will save cent on each
pound of butter fat delivered.
Peach Borers.