Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-12-28
COOPERATIVE MARKETING
Department Devoted to the Pool Selling of All Farm Products

boards of directors of co-opera-
tive marketing associations are
men of the highest standing, full
ly equal in business caliber, re.
sources, and native ability, to the
boards of the biggest big bust
ness corporations in the state.
Legal Contracts
Al successful co-operatives
are founded on legal and en-
forceable contract between the
association and the member, by
which the member is bound to
sell and deliver his commodity
to the association over a period
Of years, and the association is
bound to receive it, grade, store,
ship, and sci 1.-The product to the
best possible advantage, wher-
ever a market can be found, and
to pay to the member for his
commodity the average price re-
ceived, less the actual cost of
operation.
These contracts are made to
run over a period Of years, to
give the association time to de-
velop to it's fullest business eff
cheney, to enable it to secure the
services of the highest grade ex-
ports by employing them fol a
sufficient period to make the 20
sition attractive.
No cooperative marketing as
ISOLATION makes a profit for it.
self as such, it's sole object be-
ing to make a profit for the
members as producers.
Enforceable contracts are es-
sential to insure delivery of the
product to the association, and
to prevent it's non-deliVery
through the influence of inter
ested dealers and others. True,
all co-operatives are dependent
for their success upon the salts
factory service rendered to the
membership but without some
method of assuring the delivery
of the product the association
would be unable to make market
ing arrangements, obtain capable
help, and make arrangements
for financing, storing and other
essential features.
Suitable liquidated damages
for violation of contract are pro-
vided, since a contract without
teeth" in it would be of no
value.
Volume of Business
Firm contracts also help to
assure a sufficient volume of
business, which is another es-
sential feature to insure sue
cess in cooperative marketing.
With a small volume the cost of
operation runs too high, and to
a large extent nullifies the ben
efits to be derived.
No organization should be at
tempted where there is not a
sufficient volume of the prod
uct to be handled to assure
economical operation, and no Or
ganization campaign to organize
any commodity should ever be
conducted without a minimum
sign-up, set sufficiently high to
assure a proper volume. 1t is no
more possible for a co operative
with a very small volume to pay
the cost of operation, salaries of
the necessary experts and other
overhead than it would be pos
sible for a onemule farmer,
with no help, to pay the rent on
a 2,000-acre plantation.
The cost of operating an asso,
citation to handle 10000 bales Of
cotton is not materially less
than the cost of handling 100,-
600 bales. The minimum, there
fore, must always be set high
and then exceeded as much as
possible, in order to make
economical operation possible.
The association must have suf-
fcient volume to compete on
even or advantageous terms with
private firms engaged in the
same business. 1t must handle
sufficient quantities of the prod
uct to be attractive to the lar
gest type of buyers or con-
sumers and gain and command
the respect of the business
world, and must be able to use
to advantage to ordinary chan.
nels of trade that are not &C.
Cessible to small businesses.
Go BE Continued