St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1916-02-09

liar to those that have contributed to
the present high state of efficiency
found in industry. And yet it would
not be desirable. even were it possible,
to systematic agriculture to the same
extent as the great industries. The
necessary readjustment should only
mean that the farmer must give more
attention to his relations to the COM
munity and that farmers must work
together. Those who cannot or will
not work together are always in a
weak position when brought into COM
petition with those who can and do.
Team work which is wisely directed
according to definite plan counts in
business competition. Effective team
work will unite the community inter
ests in a force strong enough to bring
a healthy constructive influence into
the upbuilding of a better country
life. Such team work will render the
producers sufficiently strong to stand
on fair competitive level with those
interests with which they come in
contact.
Stick To Small Farms.
The small farm is the prevailing
unit of production in Vermont. and it
is we'll it is so, for when it comes
the work of growing farm crops the
one-family farm is the most efficient
unit. But the prosperity and even the
existence of the small farmer is
threatened by the handicap under
which he finds himself buying and
selling. Much of the economy of
large-scale production consists in an
advantage in bargaining; that is. in
buying and selling. The big farmer
who can buy and sell in large quanti-
ties, and who can also employ expert
talent for such transactions, has the
advantage over the small farmer who
deals only in small quantities. 1t
would then seem desirable, from the
standpoint Of state and national effic-
iency, to preserve the small farm as
the producing unit and organize the
small farmers into larger units for
buying and selling. Thus we should
have the most efficient units both in
which is produced. This can only be
done through the organization of pro-
ducers into cooperative associations.
Must Be farmers Organizations
Before considering the function of
the cooperative association we should
give brief mention to it's form and or
ganization. A cooperative association,
if purely such, is usually formed with
out capital stock. 1t may, however,
be formed as a stock company pro-
vided the law under which it comes
into being gives 1T the right to regulate
the membership and the method of
distributing the profits and proceeds.
The purely cooperative organization
operates at actual cost, without pc
cuniary profit, for the benefit of it's
members. 1t is an Industrial democ-
racy in which each member has one
vote or a voting power in proportion
to the amount of business transacted
for him through the channels of the
association. The stock corporation
differs fundamentally in principle. 1t
is founded on capital and is operated
for the purpose of dividends The
membership is not under control. The
farmer who owns stock in such a cor
poration has the legal right to sell it
to whom he pleases, and through such
a sale of stock the control of the as
ISOLATION may be transferred from the
producer to competing or unfriendIy
interests. But farmers organization
should be composed exclusively of
farmers. The right to membership
should depend upon the transaction of
business through the association, and
when a member ceases to conduct bus
mess through such an association his
membership should be terminated.
Present Law In Vermont.
The new corporation act enacted by
the General Assembly of 1915 is favor
able to the formation of cooperative
associations. By it's enactment Yer
mont legislators placed their state well
to the front with the states having
legislation favorable to the progress
of agricultural interests. In addition
to placing the capitalization require
ment at only five hundred dollars,
this act (No. 141, Sec. 81 provides as
follows. concerning the formation of
cooperative corporations: mo cor
poration formed under this act shall
have the word cooperative or any
abbreviation thereof as part of it's
name unless the articles of association
contain all the following provisions:
1) Each shareholder shall have one
vote and only one in all matters per-
tanning to the management of the cor
poration. CD The interest or divi-
dends on the paid up capital stock of
the corporation shall not exceed six
per cent per annum. CD There shall
be set aside annually not less than ten
per cent Of the net profits of the cor
poration for a reserve fund until there
is accumulated a fund of not less than
thirty per cent Of the paid up capital
stock. (4) The remainder of the
earnings or any part thereof shall be
distributed by a uniform dividend up
on the amount of purchases or sales
through the corporation by the share
holders. or the amount of raw material
furnished to or business done through
the corporation by the share holders;
said profit or earnings to be distribut-
ed as often as once in twelve months.
CD Not more than ten per cent OF
the capital stock of such corporation
shall be owned by any one member.
Certificates Of stock in cooperative
corporations shall contain a statement
on the face thereof that the holder Is