The Liberal democrat. [volume] (Liberal, Kan.) 1911-1924, 1919-01-09
VOTED TO PUT CREAMERY
ON SUBSTANTIAL. BASIS

The meeting of the stockholders of
the Liberal Equity COOPERATIVE
Creamery & Produce Company was
held at the court house Tuesday af-
ternoon and much business of impor-
lance was transacted.
A vote of the members was taken
to determine whether they wished to
finance the institution and start bus
mess or dissolve the corporation.
Upon vote being taken the decision
to continue the business was almost
unanimous.
There is no doubt a great deal of
misunderstanding in regard to the
business of the company. There were
several factors which contributed to
the losses of the past few months,
and we shall say frankly that we shall
not place any blame upon anyone.
We are of the opinion that mistakes
have been made, but this is nothing
unusual in business enterprises. True,
it is easy to look back and see the
errors of judgment, but what may
seem like q good business move may
turn out disastrously, and after hav-
ing been engaged in business for
number of years we realize that it is
impossible to avoid errors. However
that is one of the real assets of a
business manager. One of the most
successful financiers of the United
States went broke seven times be-
fore he finally made his fortune and
profiting by mistakes of the past, he
finally built up one of the greatest
business institutions in the whole
world.
One Of the expensive innovations
of the creamery business was the
truck line. Figures showed that it
would pay-but operation proved that
it would not. 1t took time to prove
it, but that is now settled and is one
of the things that will not have to be
contended with in the future.
Another thing which was brought
out at the meeting was in regard to
competition with the big companies.
We understand that the price of
cream was higher here than at other
points and that the creamery was
meeting this competition. Of course
this is hard on the business, but if
the farmer gets the increased price
for his cream and produce it is just
the same as taking dividends. An
other thing which we might mention
is the fact that the money which
should have been a profit, but which
was loss, has not gone out of the
community. 1t has been spent here,
paid principally to the farmers who
sold to the creamery, and in reality
the community has suffered no great
loss.
With this it is doubtful if the
creamery would have suspended OPP
Grafton had it not been for the ex-
IRENE weather conditions. Right at
the time when finances were at low
ebb, the roads became impossible,
stock suffered from the weather and
the receipts of cream diminished |
alarmingly, causing serious loss.
Therefore the directors deemed it |
advisable to suspend operations un-
til the institution could be financed.
At the meeting a number of the |
stockholders paid up their notes for
their first share and some for the adj |
ditional share. If all will settle in
full for the first share subscribed,
operation will be resumed. AS fast
as the second shares are paid out the
indebtedness can be liquidated and
the creamery put on a sound finan-
cial basis.
There has never been enough mon
ey in the creamery. Out of the
$51 900 subscribed at the start
only something like a fourth was
paid in cash and the balance was paid
in notes. Only about fourth of the
notes have been paid. 1t has been
necessary to keep borrowing and
shifting this Indebtedness, paying
and expense incident to get
ting loans. Had the money paid for
interest been pro-rated to the men,
bers it would have been a nice sum.
The creamery is the farmers insti-
tuition. While it is a great benefit
to the town, and many business firms
have taken stock to assist in making
it possible, it belongs to the farmers,
and it is the farmers who will get the
patronage dividend when it is paid.
Therefore it is up to the farmers to
finance it and make it success.