The Parma herald. (Parma, Idaho) 1903-1917, 1914-09-17
Cooperative Cheese Factories.


specializes in cheese
and has 20 comparatively owned cheese
factories. Their method OF organizing
and operation is explained as follows
by DR.. Hector Macpherson. professor
OF political economy at the Oregon
Agricultural College:
when the need of a cooperative
factory is felt, meetings are called and
interest aroused. Then a thorough
canvass of the neighborhood is made
with view to determining how much
milk can be secured The canvass in
dicates how large a factory will be re-
quired; and, on this basis corpora
ton is organized with a capital stock
ranging from $500 to $4,000, with
shares varying from $40 to 800. The
farmers subscribe for the stock. In
case enough of the stock Is not sold
to finance the factory, a loan is secur-
ed from the local banks. They usual
ly are able to get what credit they
need at the very reasonable rate Of 4
per cent per annum for two years. BY
the time the loan natures, they have
as rule saved enough to pay all
debts.
EdCu dSSOCldllOu 10 ullucI d DOdi u
of three directors elected by the share
holders at their annual meeting. The
bylaws stipulate that each member
shall have but one vote in managing
the affairs of the corporation, regard
less of the number of shares he holds
Although this provision conflicts with
our corporation law under which the
factories are organized, the members
IL II
conflict with the state law in theil
provision that no member shall sci
his stock without first offering it tC
the association These elements o.
confusion arise because Of the fac
that we have cooperative law in thil
state so idealistic in its provisions al
10 be practically useless. Hence, co
operative societies are forced to OF
ganize under corporate law.
1.-The cheese-maker is hired at
salary of from $1,000 to $1,000 year
Then 16 cooperative factories AM
three privately owned concerns hav
united in hiring a common inspecto
and in maintaining a central offic
and sales agent at Tillamook. Ever
cheese is inspected and unless
comes up to a certain standard it doe
not receive the brand of the associs
ton. Cheese bearing the brand G
the association has attained reputs
2 ton which makes the work of the sci
ing agency pleasure. The sales d.
; rartment, in charge of Mr.. Haberlacl
T; handled 100000 pounds of chees
during the past year; and received
J, payment about $4,000, or an averag
}, of about 1615 cents a pound. Both th
inspector and the sales agent receiy
fixed salaries, to which all the as
|. ciated factories contribute in propo
ton to their output. Most of the su
D. plies required by the factories belon
II ing to Mr.. Haberlach's agency are pu
5, chased in wholesale quantities, thu
j saving about Is per cent in cost.
e. 1.-THE common plan Of doing bus
ness is to set fixed charge per pour
J; for making and selling the chees
a The aim is to make this high enout
T. to meet all expenses and pay a ia
!; rate of interest as dividends on stoc
); "Since cheese is made on the has
of a fixed charge per pound, the n
y, profits vary inversely as the expens
of the year. Any extraordinary c
S, pense means smaller dividends ,
stock Under favorable circul
stances, dividends have been as hi
as 20 per cent; while again, they ha
gone almost to nothing.
NJ Though this dividend schen
10 seems to give satisfaction at Til
n nook, it is not true cooperation, al
70 is being gradually abandoned in w
" consin and Iowa. 1t has been foul
q that high dividends always lead
10 trouble and division. So they are g
10 ing way to a moderate interest
ot the actual investment, followed by I
ID distribution of the net surplus amo
pc the patrons in proportion to the mi
r. or cream supplied the association.
n Apart from the method of payi
m dividends, the Tillamook associatio
Of give a fair idea of the organization
is creameries and cheese factori
ne throughout the country Experien
at has shown that there should be
an assurance of at least 400 COWS for
nt creamery, or 200 COWS for a chez
co factory before an association is sta
70 ed. If these numbers cannot be
es lied on, the dairymen would probal
do better to form a milk-shipping
skimming station to market their p
- duct.
DO Capital is commonly raised on
at TillamOOk plan, the members TAXI
a the stock and paying for it, either
cash or with their negotiable not
~, The common European method OF b
N rowing the necessary capital on
=. joint liability of the members of
association has not found much fa'
nc in the United States.
ns THE possibilities of economy in
q, dairy industry show the underly
principles of success in practically
"a branches of agriculture. Progr
a. which is deep-rooted and perman
vi VI, can only be achieved through the I
al fication of rural forces and resourc
To right of him and to left of him,
u; farmer comes face to face with C
per solidated capital under expert m
an, agement. Only when reinforced
Du union with his fellow agriculture
S2o is he in a position to demand
ldl- treatment. For the achievement
940 this end, cooperative enterprise
as we have seen, proved effective
op, the dairy industry"
IN;
ole Blind May Now Play Cards.