Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1920-07-15

] want to present q BRIEF outline
OF the work by the board of direc-
tors during this period.
We soon realized that what we
did not know about how to go at It
amounted to more than what we did
know. and consequently we did not
always agree on ways and means to
reach the goal which we all agreed
should be a true cooperative market
ing OF farm produce, conducted and
based on real business principles SO
that we might be able to place our
potatoes and other produce where II
is wanted and when It is wanted in
standard grades so as to create and
increase demand for Minnesota po-
tatoes and farm products.
We were perhaps cropping in the
dark for little while about what
to do. No money was in sight to
pay even for a postage stamp. The
law limits the commission for ex.
penses in selling shares to So Of
the amount OF shares sold, SO We
could not figure on any income worth
while from that scource, and we de.
cided not to have any promoters tc
sell shares nor TO pay anybody ell
Their commission or compensation In
any form whatever for selling
shares.
The publicity given our organiza.
ton by the agricultural papers and
the daily press created a demand
from local organizations and farm
er clubs for information and expla.
nation from the board OF direc.
tors about this new plan Of market.
Nng which we felt II our duty t.
give by meeting with local groups
OF farmers or organizations when.
ever invited to do so. We also real.
lied that to make this marketing a
success we must be sure OF the raw
material, specially the potatoes in
sufficient volume or quantity before
we would be warranted in establish.
ing headquarters, with equipment and
hiring manager and sales agency
and securing adequate protection for
these potatoes enroute to buyer In
the distant markets as near as pos
sible to the ultimate consumer.
] All this could not be done without
spending lot of time and money
In different ways. We felt it our
duty to prepare this marketing in
stituticn so ii would be a sure sue
cess. We felt that we had been
charged with the duty OF doing sc
and II we did not do all in our pow
err as we saw it ought to be done
it would be nothing but criminal
neglect.
Expense in marketing depends
largely upon where you will market
To haul a load Of potatoes to the
nearest cash buyer or to your coop
erative warehouse costs very little
but the hauling. But to sell and
transport and protect enroute and
get your money home from a distant
market costs considerable more and
requires an organization and GER
tain volume Of sure business to keep
the overhead expenses reasonable
so as to make the transaction a
real saving In service. II we can
not make our marketing system a
real gain in the net return for our
products, we are not justified In or
ganizing. Therefore we must be
sure OF the raw material, the pota-
toes. This means that the potato
growers must organize themselves
and agree with one another and
give bonds or security that they will
live up to this agreement to mar
ket all their potatoes so as to Sc
cure the volume Of business neces-
sary to warrant all the expenses in
Cured in selling.
In other words we must know the
size of our business before we can
prepare to carry the business eff
GENTLY, and that is what we have
been working on more than anything
else up to this time. So far n local
associations have voted to affiliate
with the Exchange and quite a few
more are In the preliminary stage
OF organization to affiliate. I expect
that at least 100 local associations
will be in line by September LIST
with the prospect Of an average mar
keting OF SO cars each or 5000 cars
provided we get an average crop.
For comparison I will mention that
the Michigan Exchange organized
two years ago and commenced mar
keting with IS associations and
handled a little better than 1000 cars
the first year. When we know the
size OF our business we practically
know the size Of the manager we
need and will be in position to
intelligently contract for such. We
have quite a few applications from