Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1916-03-02
Cooperative Cheese Factories Very
poplllar in Wisconsin.

CO-OperJtlNc cheese factories are
popular in Wisconsin. There are 577
factories in the state, and of these
81 are cooperative and 2G6 are
owned privately. In five counties
studied recently there are 500 Swiss.
brick and Limburger factories OF
this number POI are private COM
panios and 299 are cooperative. n
study was made of LAG of the coop
oratiVely owned factories for making
an ANALYSIS of the organization. 1t is
assumed that the term cooperative
applies to those companies composed
of members actively engaged in agri-
culture who employ the cheesemaker
and supervise the selling of the
cheese; in short. a company of milk
producers who have direct control
and management of the manufacture
and sale of the cheese.
The capitalization of the LAG CO.
operative factories investigated
ranged from about $500 to $500.
with nearly three-fourths of the num-
ber around S1,100. The share a,u
alton varies from s. to $500. 18th
the shares of &c factories falling be-
low s25. and those of only six going
above $500. In every county except
Dodge the average value of share
is between $25 and $50. In Dodge
county it will average less than $2j.
As To members.
The number of members forming
company most frequently falls be-
tween six and ten farmers. But here
again Dodge county forms the eX
Ception. five of her nine cooperative
companies having membership of
more than IS, and with but one com
pany below 10 This high member
ship is entirely consistent with the
low share valuati n. for the lower
the shares the more widely distributed
they are likely to be. Green county
especially tends toward small groups,
II of the 3S companies investigated
having a membership of three, four
or five. 1t may also be pointed out
that three of tho six factories having
the largest shares, $500 or over, are
in Greene county; thus again Illus
tratng the principle that the higher
the value of the shares the more re-
stricted the number of members.
With the average capitalization
around Sl.100, the average value of a
share between s25 and $50 and the
I average number of members between
six and ten,.it is quite evident that "A
great many Of the stockholders own
more than one share. This is the
case in nearly all factories where the
share value is below 800.
Mostly Farmers.
All the managers interviewed were
questioned as to the number of their
shareholders who were not farmers.
The number is so small as to he al
most insignificant. there being but 25
altogether. Moreover, the greater
number of members reported as non
farmers are men who have retired
from the farming business, but have
Kept their shares in the factory. An
organizat ton seldom has more than
4. Ia. ia
rare instances are the nonfarming
members engaged in other occupa-
tons.
over half of tn factories follow
the non dividend policy. the object
being to pay the highest possible
price for milk rather than to accumu-
late a surplus and divide it as divi-
dend. This rewards each member ac-
cording to the amount of milk he
hauls. Since nearly every factory
buys milk of nonmembers the plan
is criticised on the ground that it
nenefits the nonmembers as much as
the members. Some factories follow
the dividend paying policy in order
to meet this objection. while others
overcome it by assessing the non
members from | 20 . cents a hundred
pounds of milk hauled for repairs and
upkeep of the factory
Among the factories that declare
dividends per cent is the most COM
mon rate, although ten factories re-
port a dividend of more than 10 per
cent. [
Most of the cooperative factories
are patronized by nonmembers. In
the share holding organizations there
are Two common methods of voting.
one is share vote allowing "A men,
hcr to cast vote for each share
owned; the other is what is known
as the "one- -man-vote' system per-
mitting each member to cast but one
vote regardless of the number OF
shares he may hold.
Two-thirds of the factories inter-
viewed practice the "one-man-vote"
method, some organizations even GO
ing SO far as to allow each patron one
vote. whether or not he. is member
of the organization.
The MiddlcmCn Continue.
The cooperative ownership and
management of cheese factory is
undoubtedly better than any other
system. 1t is of small consequence
because 1t solves such a small part
of the marketing problem. The long
line of middlemen is still intact. and
the line is too long. Probably the
farmer cannot hope to break into the
retailers realm. II that Is improved
1t will have to be by action on the
part OF consumers. The farmer has
heretofore at best a hope of effecting
savings from but relatively small