The Glasgow courier. [volume] (Glasgow, Mont.) 1913-current, 1921-02-11
THE KALISPELL
WAREHOUSE
A Brief Explanation of the Acti-
vities of the Northwest Potato
Growers Warehouse.
A SENICO-OPERATIVE PLAN
Report of Procedure DisclOses Many
Advantages to the Farmer from
the Institution of Such an En-
terprises. A Few Dis
advantages.

Many inquiries have come from the
readers of the Courier from time to
time relative to the Northwest Pota-
to Growers Exchange which has been
in operation at Kalispell some two
years. In the first place, it was dis
covered through experiments that the
Flathead Valley of which the Kalispell
country is a part, was especially ad-
apted to the raising of tubers. 1t was
also discovered that a standardization
of that product there would result in
the marketing of an exceptional quail
ity of potatoes for which a ready mar
ket could be found.
These experiments were encouraged
both by the farmers and the business
men of Kalispell. 1t was after this
discovery that the business men and
these farmers formed a cooperative
stock company known as the Martin
west Warehouse Co. This company
proceeded at one to erect in that city
a modern warehouse at a cost of APP
p~roximately $22, 10000. This ware
house is operated by the Northwest
Potato exchange, a private sales Or
ganiZation, at a total cost to the grow
err of 10 per cent of the selling price
of his potatoes. This 10 per cent
charge overs the cost of marketing
the potatoes from tht delivery at ware
house to final sale, salary of manager,
sales force and such field forces as
are required during the growing and
packing seasons The advertised reg
istered brand of the exchange is placed
on potatoes which come up to a speci-
fled standard.
In addition to potatoes 1,400 sacks
of miscellaneous vegetables and sew
eral carloads Of apples were handled
by the exchange this year. These
We're sold as an accommodation to the
growers, who had no satisfactory
outlet for this produce.
The potato growers received var
ious amounts per acre depending
largely on soil cultivation and care.
One potato grower on a 20-acre patch
received $228.41 per acre, As growers
average $3.50 per acre., 70 growers
averaged 500 per acre and the bal
ance less char 500 per acre.
The 1921 contract between the grow
ler and the association provides that
every grower shall agree to a deduc-
ton of $11 per acre from his crop re-
ceipts, $40 to go for purchase of stock
in the Northwest Warehouse associa-
ton (potato w~arehouse) and 81 of this
amount to advertise the potatoes in a
national way. If no warehouse is
erected in the growers shipping dis
trict the $40 is not deducted.
This plan of operation might be cal
led semi-cooperative and has some de-
eide, r12antagns as we'll as ~disadvan-
tages from the standpoint of the grow
er.
The grower gains by joining the
Northwest Potato exchange: () com
petent managers, (2) use of well-ad-
vertised brands, 60 advantages of ex-
perienced selling organization costing
about the same as Minnesota coopera-
tive companies pay to the Northwest
Fruia exchange, (4) advantage of
grading and standardization of pro-
duct, (5) advantage of buying supplies
in large quantities and advice of ex-
perienced growers as to culture, vari-
cites, etc.
While or the other hand, the grow
err loses by joining the Northwest Pc
tato exchange: CD control of his sell
ling organization, (2) use of advertised
brands which are property of North
west Potato exchange if grower leaves
exchange, CD possibility that con-
tracts unfavorable to grower may be
required by exchange at some later
date.