Richmond daily register. (Richmond, Madison County, Ky.) 1917-1978, 1921-06-14
MOST PERMANENT ORGANIZE TON IS URGEl

organize not only from permanent
standpoint, but Just as you would or
ganize a bank. Suppose you were
organizing a bank. The first thing
you would think is, How much CAPT
tai will I need for the bank?" You'd
say to yourself that if you are organ
izing for a town like Paducah you
might get along with 100000 capital
always figuring you can make the
maximum loan one-tenth Of the CAPT
| tai and surplus. And a $4,000 loan
! is fairly marketable in Paducah
Thinking it over. you'd say. IF am
going to organize in Louisville $780,
900 won't take me very far. In
Louisville will need at least half a
million as the capital, so as to enable
me to get some real business in this
| town." On the other hand, IL you
were thinking Of organizing a bunk in
New York you would say, Half a
million won't take me anywhere, be-
cause in New York the real business
runs to great figures" You must
figure on a larger amount in order to
be a factor in the market. In other
words, the capital you would need
would depend on the field in which
you intended to operate. That is
SOUND banking. You know what you
would think of q banker trying to To-
cate in Louisville and to open bank
with $4,000 capital. You would say,
Poor man, he is so limited in his
field of activity he can't do any
thing" Wherever you locate a bank
there is a proper minimum, a proper
capital, a proper figure at which it
can do business.
We think the farmers business in
California is as important as bank.
When we start out with q. cooperative
association we at once fix minimum
for our cooperative contracts. With
raisins that was IS per cent. That
was based cold-bloodedly on the idea
that there would be an overproduc-
ton. They figured they would have
enough tied up SO that if there we're
an overproduction and they couldn't
increase consumption in a few years,
nevertheless they could carry over
some and compel the buyers to come
for some raisins.
With other things we have different
mininlums.- With eggs all our con.
tracts were conditioned on signing up
the owners of 1000 900 hens. Today
we have 100000. With prunes the
minimum was IS per cent; with pears,
so per cent. We get the minimum.
We don't make any contract effective
until that minimum is reached. Do
you see the logic behind that? We
are starting as solidly as bank. 1t
is a business proposition, not hurrah
thing. 1t is business.
A Tight Contract.
Then we tie those growers up under
as tight contract as you have ever
seen. We have been criticized for that
type of contract. Men refer to it very
scathingly, calling it all kinds of
names. We draw.up the tightest con-
tract we can. We guarante if any fell |
low signs contract he is going to de- |
liver the product. We have taken the |
contract into court time after time, |
and not only get liquidated damages, |
but likewise get injunctions to prevent |
delivery to other people. We get orders |
for specific performance on this con-
tract. We get equitable relief all the |
way down the line. In short, we make |
the contracts the strongest things, |
not the weakest. We stick in strong |
clauses in just the same way as, if |
you were organizing a bank, you !
would draw up subscription agree
ment for capital, making it the strict
est contract you know how. We al
ways realize the Spectator has too
much money at stake in any agricul- !
tural industry to let the growers get
away with it. They keep fighting until
we wipe them out completely. The
Spectator gets some growers. They
are men like you and me, only they
are weaker. The temptation is strong.
he scares or appeals to
them through some social connection.
We have welchers occasionally; then
we need strength in the contract. An
honest man doesn't really need con-
tracts. The fellow who is not honest
had better not sign, If he does sign
you will get his stuff. We organize
from purely business standpoint and
have strong contracts-a fixed mini
mum and the idea of permanency; all
absolutely on a nonproft and co-opera-
tive method.
We prefer the association without
capital stock for the marketing asso.
citation. If we need building, a ware
house or packing plant. no matter how
cheap or expensive, we organize SUBJ
sidiary organization. We must be very
Monopolies are forbidden
under the Sherman antitrust act. The
Clayton amendment, however, ex.
smpts agricultural and horticultural
not organized for profit
and not having capital stock. We are
extremely technical. The Sherman
act is criminal law. Every part must
be strictly construed In ORGANIZING
keep as closely as you can to the text
IF the law.
We organize the marketing asso.
,iation without capital stock. The
,nly association that buys or sells
las no capital stock. We never
handle single penny's worth Of stuff