Montpelier examiner. [volume] (Montpelier, Idaho) 1895-1937, 1914-05-22

mas altogether received over three /
cents a quart for his milk, almost one
cent more g quart than the person
selling to the private distributors.
But this is not all. The farmer has
invested absolutely no money in this
cooperative concern. Yet at the end
of the 20 years the 100 farmers are
in possession OF a plant which is prob
ably worth 100000 and which has
been accumulated out OF the profits OF
the establishment. This is the prop
erty Of those who have delivered the
milk to the concern. II belongs 70
them In proportion to the amount OF
milk which they have delivered, taking
into account, in every case of course,
the quality of the milk as well as the
quality. The average farmer has
thea from his milk in addition to the
price which he has already received.
maze a profit OF $4,000 for the 20
years.
Cheap to the Consumer.
On the other hand, the prices paid
to The cooperative concern by the pri-
vate taker is extremely moderate. For
the ordinary quality of milk, which
corresponds to our certified milk, he
pays about six and one-third cents
ger quart. For the special milk, the
infants milk and the hospital milk,
which is of quality seldom found In
American cities, the consumer pays
seven cents per quart.
Capitalized Without Money.
Twelve years ago when the Tri-
folium was organized, not a dollar
was furnished by the members. One
hundred farmers got together and au-
thorized few of the leaders TO Dor
row $125,000 at the bank. 1t is to be
remarked in this connection that the
banks of Denmark consider loan to
cooperative association which has
no capital stock and no tangible prop
erty as a perfectly good loan. 1t has
been demonstrated again and again
that these associations are planned In
such q way that they are worthy OF
! credit. 1t is considered as safe as
any American Industrial bond. In this
case as in all others, only few Of
the leaders signed the note at the
bank, although OF course the entire
number who were in the organization
agreed to stand back of those who
borrowed the money. The bank was
safe, both because the 100 farmers
represented were responsible finan-
cially, and because they knew a CO.
operative concern such as this was TO
be was a sound business venture.
The arrangement with the bank
was that the money was to be paid
back out of the profits in annual in
stallments running over 20 years.
The rate OF interest was low.
The association has been in opera
ton 10 years A larger sum than the
original $125,000 has been advanced
because the volume of business has
been SO great that it was necessary
to make additional investment. The
concern has now 100000 invested.
Nevertheless the entire Indebtedness
will be wiped out within the 20 years.
The big plant, which will then have
been paid for, will represent a sur
plus of profit made out of the busi-
ness. 1t is to be remembered, too,
that this will be owned by the mem
bers in proportion to the amount Of
milk each has delivered to the coop
erative milk association during the 20
! years
How They Run the Society.
The 100 farmers who own this big
concern have $4,000 cows, and all
have entered into agreement binding
each member to deliver all his milk,
or so much as is needed, to the com
pany. Over 5000 cows are MIXED
each day. Some of the members own
600 to 500 acres. and this particular
association has few members who are
small farmers.
The association is controlled by a
board of directors. These directors
are elected by the members at an an.
nual meeting, each member being en-
titled to one vote, and one vote only
irrespective of the proportion Of his
interests in the concern. A man who
has two cows has the same voting
|, power as has the man who has SOC
cows. This democratic system Of
voting is common to all cooperative
concerns in Denmark. and In fact 1t IL
. the universal rule throughout Europe
Quality First.
II is to be noted that this co-opera
: tive milk company succeeds, not be
cause 1t Is cooperative, but 1t sue
ceeds because 1t stands, as do othel
cooperative concerns, for the highest
. possible quality in its product. I
, strictly enforces rigid rules relative
to quality and takes every precau
!, ton to insure cleanliness and purity
Some of the requirements which it en-
! forces upon those who furnish mill
. to it are as follows:
First, there must be a monthly In
, spection Of the cows by the veter
. mary representing the distributing
company: second all unhealthy or de
fectiye cows must be instantly with
!, drawn; third, any slight sickness be
: tween monthly visits must be reporte'
] to the company and the milk kept sep
! arate; fourth, all sanitary directions
as to ventilation, cleanliness. etc
! must be followed; fifth, milk from
, cows others than those inspected ant
. under control must not be mixed witt
: the milk furnished to the company
! sixth. milk intended. for infants, us
: or hospital use must be produces
! from cows from which are excludes
: all feeds and folders Injurious to tn
4 flavor or quality of the milk; seventh
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