Richmond daily register. (Richmond, Madison County, Ky.) 1917-1978, 1921-06-14

plan. They analysed their failure
and said the fault was because they
were organized from locality stand
point instead of from the standpoint
of the commodity.
In California we have organization
after organization first going broke
on the locality plan and then sud
denly discovering the commodity plan
But we never realized it until 1920
That was the first time anybody ever
really articulated the difference be-
the California plan and the
Ether plans. That opened our eyes.
We said: How easy. That is the diff
ference-organize from a commodity
standpoint and not from a locality
standpoint"
For Farmers Only.
) A1You must handle the commodity
idea within practical limits. But the
commodity idea is the first thing to
bear in MIND when you are thinking
of successful cooperative associa-
tons.
The next thing is that a co-opera-
tive commodity cooperative associa-
ton must be composed of farmers
only. Don't let in a single outsider.
A man may be banker and a farmer.
but he must qualify as a farmer. He
can't get in just as banker. The
same applies to the merchant. He
must actually have something to sell
through that association. There must
be a, community of interest between
him and every other fellow in that
association.
Then you must organize for bust
ness purposes only. This is funda-
mental. Don't have any visiting Il
the sick or hurying of the lead" in
these cooperative associations. There
must be no politics in them-nothing
but straight business from the ground
I'D. We don't permit discussions on
ANYTHING that has nothing to do with
cur commercial problem. Now that
is sometimes a very hard thing for
the so-called professional farm lead
ers to swallow. The only kind of
an association they are used to is
farmers debating society. The CO.
operative associations are composed
wholly of business Interests and are
organized exactly like, say, a bank.
will show you why.
The first thing we think OF when
I'VE organize an association is How
permanent can we make it?' We
don't organize d so-called Fly by
night interest on d one-year basis II
California. After you have an organ
ization going for years, like the orange
growers association, then you
can make a contract for one year.
Your trade is established, the outsider
is weak. You can easily go on with
withdrawal privilege. But wheL you
first organize you must organize Tor
a long period, anywhere from i've 10
Afifteen years. The new raisln con-
tracts are for fifteen years; the peach
contract eight years; prune contract
seven years. In Denmark they sign
for as high as fifteen years. The SV-
,ragc contract is a five-year contract.
That gives your association a chance
for mobilization on a permanent basis;
il gives the association a chance 10
work out merchandising policy; 1t
gives the association a chance to
make trade connections.
Take the question of advertising
t6ou don't suppose that advertising
for one year gives US any real result!
What would have happened If the
prune growers had organized on
one-year basis? Where would they
have reached? To get the real re-
suits of advertising you must get
cumulative effect. You must have
long term contract for real mecchan-
dising.
The Why of Long Contracts.
You can merchandise on long con-
tracts. Take prunes. They have
raised the consumption of prunes IN
the United States in period of three
wear from 100000 pounds to 112-,
600. 900 pounds. The consumption OF
oranges in the United States was IN
creased 300 per cent in a period OF
less than seven years by the adver-
Using of the California Fruit Growers
Exchange. A number of these asso- |
Citations operated after the alleged
business or commission men had been
doing what they thought was adver-
Using to get increased consumption.
You can't do these things on a
short time basis. You will hear some
objections to that. The growers may |
say they wouldn't think Of signing for |
five years. You will probably hear
the same story that went through |
California some years ago.
When we started the prune cam
naign, that was the Last Of the Mo-
hicans' as far as the spectators of
California were concerned. Prunes
were proving profitable for specula-
tors. All the other dried fruits were or
ganized. They put on-a real fight to
prevent the organization Of the grow
ers. They sent buyers into district
after district, trying to convince the
farmers they should hot sign. The
buyers would sit right down and talk
to the individual farmer, Say, this
stuff is pretty good, mighty good con-
tract, fine idea for the growers. We
believe in cooperation. If it were only
for one year instead of five, would