The dispatch-news. [volume] (Lexington, S.C.) 1919-2001, 1921-05-04
The Principles of Cooperau'e
Marketing.

Marketing.
Clemson College, April so.-The
Jnited States Bureau Of Markets re-
norts that there are about fourteen
thousand farmers buying and selllns
J organizations scattered throughout
the United States >(Farmers bulietn
s1l44).. From this it is evident 'iia'
American farmers are awake TO the
necessity of their taking mana IN
the business OF distributing their
products. Some of these puylng ana
selling organizations are cooperative,
that is, they are organized without
capital stock and pay no stock dlvi-
dends, all proceeds less costs being
prorated among the members ac-
cording to the amount of business
done through the organization. 9th
ers are stock company organizations,
and the farmers who own stock re-
ceive market prices for their prod
ucts, plus stock dividends provided
the organization makes a profit This
kind Of farmers organization is very
similar to an ordinary corporation
and is Of little value from the grow
s ers' standpoint for the reason that its
prime object is to pay its stockhold-
ers dividends on capital stock. Like
~
cheaply as possible and sell as high
as possible.
Combination Stock and Patronage
Companies.
Some of these organizations COM
bine in various ways features Of both
the stock company dividend-paying
organization and the non-stock,
purely cooperative associations. For
example, some Of them limit the divi-
dends payable on stock to or Z per
cent and provide that any profits
realized above such per cents shall
be paid out to the farmers who buy
or sell through the organization. The
amounts thus paid out to patrons are
called patronage dividends. The pay
ment Of patronage dividends is based
on the premise that patrons are as
necessary to the success Of an organi-
zation as is capital stock and there
fore entitled to receive a share of the
profits realized in the marketing op-
GRAFTON.
Pure Cooperative Marketing
Pure cooperative marketing, on the
other hand, means the taking over
of the marketing process or Of GER
s tain parts of it by. growers on a basis
of equal risk and equal profits. No
capital stock is necessary under this
plan and all receipts from the sale
SSof products, less costs Of selling, are
returned to growers in payment for
I the products marketed.
Thus we see that the thousands of
farmers buying and selling organiza-
tions throughout the country make
s use Of the principles of cooperation
in every possible degree Of variation
from the pure cooperative plan to
the ordinary stock corporation plan.
Six Principles Briefly Explained
The six main principles underlying
the successful marketing of farm
products on the purely cooperative
plan may be stated as follows:
(1) The basis of such association
shall be single crop or commodity
and not a combination Of crops which
are marketed in unlike manner.
Neither is the association organized
merely by counties or other political
division but rather over the entire
territory where the particular COM
modify is produced.
6, CD Membership is limited to grow
ers and to landlords who receive a
part Of the crop as rental.
CD Each member enters a bind
ing contract with the association
agreeing to turn over to the associa-
ton for it's resale value all Of the
commodity which comes into his pos
session as a grower. The association
markets that commodity for nobody
except members.
Cd The commodity is all graded
ETw 7 ~ ff5i