Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1911-06-15
SAVING THE PROFITS
BENEFITS or COOPERATION IN
JACKSON COUNTY.
Farmers Are. Saving $1,000 Year
Through Cooperative Cream
ery-Most Successful of Its
Kind in the State.


Few people realize fully the amount
Of money saved to community OF
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 1t. II is con.
sidered by travelling statesmen and
dairy missioner. as one of the
most successful creameries Of its kind
in the state.
In 1900 few of the most prosper
GUS farmers in the locality saw what
profits we're to be made from dairy
ing. They were five or six miles from
town, which was the only market At
the suggestion Of 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 a 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 Dor
rowed on the strength Of this.
A site was secured about 75 yards
from a 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 a 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.
II is in the plan Of cooperation that
the strength of the creamery lies. At
the start payment was made every
month. Since. they have voted to
pay twice each month. Milk or cream
10 tested every two weeks and the
amount Of butter Tat patron has de-
livered is computed. A sinking fund
Of 1 or III is set aside from each
months returns. This fund is In
tended to be used 10 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 i've
years. there was not enough money
in the sinking fund to pay of 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
selves 81 for each meeting.
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 300.
At first. only whole milk was taken
in. later both whole milk and cream.
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 barn built for the use of
the butter-maker This year they are
starting to build an addition to the
main building. II win add . new
store room. living room for the but.
ter-maker. an ONCE 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 n cent pound for butter fat
more than any Of the private cream
cries. Sometimes this excess goes as
high as III cent pound. This Is
what has pulled such an increase in
patronage. One farmers herd aver.
ages about z,0o0 pounds Of butter fat
year. This means that he gets from
SIS to $50 moro than II he had pa
tronized private creamery. With
500 men patronislhg the creamery. 1t
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. II is entirely
out of debt. and the men who patron.
ize now will save cent ON each
pound of butter fat delivered.