Deming graphic. (Deming, N.M.) 1903-1948, 1913-05-23
SQUARE DEAL FOR
FARMERS DEMANDED
FARMERS SELLING AGENCIES
An address By Lloyd S. Tenny to the
First National Conference ON
Marketing and Farm Credits,
Chicago, April 8, 1913.
TT FUNDAMENTAL PRINCIPLES

"h'''lHS lnt Au'ccSS OF lallufc OF a
farmers selling organization. 1t is
not possible to draw up set Of rules
and regulations, which, when fol-
lowed, will invariably lead to success
II Is possible, however, to study n
large number Of successful co-opera
tive selling organizations and select
certain factors that appear to be
present IN most or all Of them, and
from this study draw some pretty
definite conclusions. We are led to
believe that our conclusions are more
or less correct il we find that many
of the unsuccessful attempts at CO.
operation did not unbody these prin-
clpIcs. First, and underlying all else,
Is the loyalty of the individual farm
crs, first to the cause of co-opera-
tive selling itself, and then to their
own particular association. This is
fundamental. We can write about
It's advantages, or may discuss all
phases of it, but we will not get co.
operative selling until the American
farmer Is convinced that that type
Of selling offer better advantages
than any system already practiced.
In this connection, il is well TO note
that IN the majority of instances CO.
operative selling has come about be-
cause Of dire necessity. Farmers
have been compelled to get together
to market their own produce, or else
be forced of their land. In more re-
cent years, in certain districts, the
farmers have realized that the same
advantages would be gained by the
establishing of cooperative selling
organizations, when the need for such
an association was not so impera-
tive. Such has been the ease with
many of the associations in the
Northwest frnit districts. These have
been exceptions rather than the rule.
however, and they have come about
because of the difference in the type
of farmer and fruit grower. a sui
hclently large number of the farm
er- in those districts have had bus
ucss training in the cities To iuf'u.
cnrc the actions Of the entire local
i.F. To repeat, then. Fundamental
10 success lies the attitude of those
who are TO cooperate.
In the second place, the success full
organizations have been mutual. co.
operative, in fact ne well as in name.
The capital stock is subscribed by
hose directly Interested, the indnid.
uals putting in the money not for the
purpose Of making large dividends
on their cash investments, but for
The sake of establishing a system Of
which will make them
greater return on the sale of their
farm crops. The dividends should
be small, not over the legal rate Of
The incomen eeded TO ruu
the business is obtained either by
making fixed charge on each pack.
age or ear sold, or on percentage
basis. In either ease the individual
shippers pay in proportion to the
amount Of business each does ANY
surplus LET, at the end Of the seq
son, after paying the nominal div
dends, is either held a. an undi,id-
ed surplus or is returned to the ship
pers in proportion to the amount of
business done by each one. With
this understanding, it is ont of keep.
ing with the idea of a mutual asso.
cation for a man or group of men
10 promote" cooperative associa-
ton. II is equally impossible to have 1
n successful association where the .
or other officers depend up
on dividends from watered stock for
their income, There is no place. any
way, for watered stock in n farm
erS' cooperative selling associations.
In the third place, pretty nearly
every successful association has been
incorporated under the laws of the |
State where established. The FIRST
tendency among most farmers, espc-
ciolly those in the eastern part Of
he country, is to form simply n loose
organization. A gentlemen's agree
ment is not enough. An association
must expect TO run against difficult
problems. More often than not, their
greatest problems will arise within |
their own number. Unless there is |
an incorporated body which can
more or less independent
existence, the association is almoS
sure to run aground.
In the last place, every successful
association is managed by success
full business man, and such men cost
money and usually are not looking
for the job. For some reason, un-
known to me, il seems to be gener.
ally the case, that whenever there is
IA movement for cooperative sell
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