Willmar tribune. [volume] (Willmar, Minn.) 1895-1931, 1921-03-02
The reason that It does not warrant a
local company obtaining membership
due. to- the expense involved. !

The reason that It does not warrant a
local company obtaining membership
/ due to- the expense involved. = -
The situation is strikingly different
in our state on account Of the recent
changes in our law wish to en-
phasize the fact that as our law now
provides, any cooperative company
formed under it is on an equal foot
ing with other, corporations Now
suppose number of local farmers Co
operative elevator companies desire
to- form a central selling agency with
the idea of taking membership on the
Minneapolis Grain Exchange, they
can do so by forming a cooperative
corporation. Under this plan, the
stock in this, corporation will be pur-
chased by the local farmers cooper
alive elevator companies that are in
terested in the formation of such sell
ing agency. Now, then, if the local
cooperative elevator companies de-
sire to have the dividend on their
stock approximate quite closely to a
technical patronage dividend, they
can do this by taking stock in the
selling agency in sympathy with their
average annual shipments. That is,
if local cooperative elevator com
pany handles on the average about
100000 bushels Of grain per year, such
company would purchase twice as
much stock in the selling agency as
an elevator company handling on an
average about 100000 bushels per
year. In this manner the dividends
paid on stock would approximate
quite exactly to so-called patronage
dividend. Then the dividends receiv,
ed by local farmers cooperative ell
evator company from the selling ag'
ency can be distributed locally, with
any local profits of the elevator, am
ong the farmers on patronage divi.
dend basis strictly. By this method
so far as the grain received from the
local farmers elevators is concerned,
the technical cooperative patronage
dividend theory can be made to ap
ply effectively, clear into the term
inal market.
The farmers elevators in the state
interested in having their grain han
died in the Chamber Of Commerce by
I their own selling agency on patron
age or cooperative dividend basis, can
do SO if they desire, the machinery has
been amply provided for under our CO.
operative law. If preferable, OF
course, they can form a selling agency
entirely independent of a Chamber OF
Commerce.
| I think the above will give your
readers some idea relative to what
may be accomplished under our CO.
operative law. The machinery has
been provided-the next thing is to
operate it. The State Agricultural
Department is charged with the duty
of advising and assisting in the form
alton of all agricultural cooperative
movements in the State. Such advice
or assistance involves no expense to
the co-operators.
The report of the details of the
/ plan for the cooperative marketing OF
cereal crops of the United States an
nounced last week at Kansas City by
the Committee of seventeen should be
thoro1y considered by every farmer
Should time permit, shall have lit
tie article later on a bill providing
for rural credits system for our
State, something about similar to the
South Dakota system adopted in
1916 This measure is sponsored in
the House of Representatives by
TheO. Christianson, and in the Senate
by Senators Hopp, McGarry, Hall and
the writer.
Respectfully,
p. A. GANDRUD.