The Daily Missoulian., 1913-02-09

mess of the association is too small
so that the percentage of receipts
that must be devoted to expenses is
fatally high. A weak spot in CO.
operation, frequently observed years
ago, was the fact that some of the
operators looked upon cooperation
more as a means of social reform
than of economic benefit. Social the
cries and enthusiasm are usually det-
rimental to success
Extravaganza in administration on
the one hand, false economy on the
other hand, loose systems Of finance,
accounting and warehouse adminis-
tration, all contribute to the leaks
that, unless stopped. are fatal to any
business, as we'll as destructive to the
mutual confidence which is the basis
of cooperation.
The next point to be considered is
the amazing shortsightedness of our
industrial sales policy. We have done
practically nothing to create and
stimulate the demand for our own
markets along the lines of the least
resistance, without any very clear
idea of how it got there, or what
became of it after it got there, so
long as the price of it was in our
pockets.
At last, stung by touch of adver-
sty out of our erstWhile complacency,
but still without general understands
ing on the part of our rank and file
of the media and processes of trade,
and the laws of merchandising, it is
perhaps natural that in the general
confusion of the public mind, and the
general desire to fix the responsible
ity for our misfortunes, we are dis
posed to take crack at every head
that shows itself--the middleman, the
railroad company, the sales agency,
the manager Of the local association.
Because it is human nature to fear
and distrust, most the things that we
least understand, those factors far
thest from US come in for the larger
share Of the blame Whereas, | re-
peat, nearly all of our trouble comes
from within, not without and in our
misconception of our problem.
What Is Our Problem?
In the first place, it is a manufac>
turing and merchandising problem,
rather than one of simple farming.
Therefore, we must employ the meth
DDS of the manufacturer-m erchant
rather than those of the farmer We
are manufacturing an article of food,
which we desire to place in the hands
of millions of consumers, all over the
world, taking in exchange their
money. our problem is then, the de-
livery of our products into the hands
of these millions of consumers in the
most economical manner, and the re
turn of the money to ourselves in the
shortest possible space of time, and
with the least possible cost of serv-
ice. The processes by which these
| things are done under modern condl
| tions of civilization are always com
plicated, but in our case are rendered
| infinitely more so by, first the per-
| ishable nature of our merchandise
and, second the isolation of our plant
! from the markets. our factory Is
$500 miles distant from the average
of our markets What is the solution
! of this problem?
In the speakers judgment, the So
luton lies in intelligent, universal CO.
operation. Cooperation is wore
freely used but, unfortunately, not al
ways understood, and most often
the user of it does not think of CO.
operation as extending beyond him.
| self and his neighbors. The speaker
would have you think of it as apply
! ing all the way down the line, from
the producers through the bankers
the railroads. the wholesalers, the re-
tailers, right up to and including th'
ultimate consumers of his merchan-
disc And as the companion of coop
Grafton, education.
Co. operation Amongst Ourselves.
| That we are learning gradually t.
do though as yet We have gone but {
little way along the road.
Cooperation with Our Bankers.
Fortunately, our bankers are be
, ing reused to their responsibilities to-
ward our industry and an appea
made to their intelligent self-nterest
1t is to be hoped and confidently ex
pected that soon they will accep
their full share of that responsible
ity and help us work out a system 81
Sdle anu SO CONSERVATIVE tllht the.
can afford to lower their present al
most prohibitive rates of interest l.
this connection, consider the hstor.
; of the largest single fruit industry i
the United States; the United Frui
company. This company started ou
with ten million capital, and under
took to reorganiZe a business that wa
improbable and unsatisfactory to a
concerned. Their capital is nov
thirty-six million. They have pal
during the last four years 25 per cen
dividends on thirty-odd millions {
capital and accumulated profits {
sixteen millions of dollars. Their Sc
curities IN the New England marke
. and in Boston on the stock exehang