The Detroit times., 1914-09-26
FARMERS
PUT QUIETUSON
COMMISSION men
Cooperative Companies Run
Grain Elevators, Telephones,
Markets and Stores
SAVING IN COMMISSIONS
is MAKING THEM RICHER
Better Prices Are Obtained For
Everything They Buy and
Sell-Insure Selves

ii Topeka, Kas., Sept. 26.--Kansas
Is driving the middleman out Of busi-
mess In certain lines SO fast that with.
In Two or three years those who trans
act business with the farmers on a
commission basis will find this state
the most barren field on their lists.
!. The broker in farm products Is be-
ing superseded by cooperative organ.
izations OF the Kansas farmers, who
lare handling their own products di-
I rect TO the consumer without the
product going through the hands OF
the broker and paying him the usual
commissions.
Cooperative trading has been so
successful In this state In the last
few years that there are more cooper.
atiye corporations being chartered by
the state charter board than any
other single class OF corporations.
Since the first OF the year more than
200 cooperative organizations have
been Incorporated. and at present
ther are nearly 1000 OF these, and In
addition there rs considerable num-
Der OF partnership agreements.
The largest single cooperative or
/ ganization Is the mutual telephone
organizations. The second largest Is
the farmers elevators. There are
more than 400 mutual telephone com
panies in the state. with upward OF
100000 homes supplied with service.
Practically all these homes are out
side the cities and towns and afford
the only means the farmers had OF
obtaining telephone communication
They built their own lines, each
farmer buying his own instrument
and paying pro rata Of the cost of the
poles and wires. These mutual lines
are connected with the lines Of the
Bell and Independent systems
There are about 800 cooperative
elevators In the state. There are 264
cooperative elevators Incorporated,
and many organizations are known to
be In existence that have not been In
Icorporated.
These elevators wer organized to
handle the grain OF the members and
OF others. They are branching out
and are purchasing the coal used by
the members, sometimes buying car
load OF sugar or of groceries or buy.
ing feed. Ten years ago the Central
and Western Kansas farmer paid
from s to IL cents bushel for mar
keting his grain. This was the brok-
er's margin and included the elevator
fees.
The cooperative organization grew
lup because this margin was too large,
and these organizations handle the
business on 2-cent basis, often
less. The elevators are. small, but
they have as efficient cleaning and
grading machinery as the big ones,
and are ample for handling all the
grain OF the members and sometimes
others. Some Of the cooperative or
CARNATIONS are able to show an act.
ual profit to the farmer OF as high as
80 per cent on the money he has IN.
vested because Of the saving In brok.
erage and other expenses and q profit
on the business done for others.
The most notable example of CO.
operative trading is the Grange store
at Olathe and its branches In other
towns and Its allied enterprises
bank, an insurance company, elevator
and lumber yards. The store has been
In operation for SO years, and II has
a paid up capital OF 100000 and a
Isurplus account OF $4,000 In 80
years II has distributed more than
100000 In profits. besides selling
goods to the members at lower fig-
ures than the same quality could be
purchased In the ordinary stores.
The next oldest cooperative enter
prise is the Wathena Fruit Growers
association. Eight years ago the fruit
growers In that section were receiv-
! ing from so cents TO 80 cents a crate
for berries. This year the lowest was
$1.50 crate. From an original mem
bership OF II eight years ago the
association has 1853 members and
does more than 100000 worth of
business year and owns property
worth $4,000. This association has
lorganized an elecator company, lum-
Der yard. general store and a CO.
operative fire insurance company.
There are more than so co-opera-
tive Insurance companies OF various
activities In the state.
Most OF them are hail and livestock
concerns, but these are branching out
now and are writing general fire and
tornado insurance for their members
at about one-third the old line insur-
ance rates. There Is one mutual COM
pany in Kansas that insures its mem
bers against casualty and property
damages by reason Of the member
owning and driving motor car. The
cost or insurance In this company has
been just one-half the rates quoted by
the old insurance companies for the
same service.
A new line OF endeavor In the CO.
Operative work arose this year In
Lyon county, where the Lyon County
Farmers Produce association was
organized. This association Is a sell
ing concern entirely II sends men
into the farm regions OF other states
TO hunt out farmers who want to buy
alfalfa and prairie hay, kafir cane,
millet corn, alfalfa meal. alfalfa seed
or anything the Lyon county farmer
grows. The deal IL made direct from
this association. The membership
comprises 200 persons, and in FIVE
months the association handled s53..
900 worth OF business for members.
II sold 40 cars OF hay at an average
of 80 cents ton higher than the
farmer himself could have obtained.
There are 2s cooperative delivery
systems In az many towns In the
state organized by merchants.