The Bingham County news. [volume] (Blackfoot, Idaho) 1918-1930, 1923-09-14
What the Contract Provides

The internal pool is the heart Of
the cooperative marketing contract
1t is the only safeguard against fav-
oritism and unwise merchandising. 1t
creates a community Of interest be-
tween all the persons of the cooper
alive instead of leaving the small
grower members at the absolute
or manager. Then, each contract
must contain minimum provision,
without which the contract cannot
go into effect No cooperative asso-
citation should be permitted to open
it's doors unless 1t is certain of
definite amount Of business. This
amount should be large enough to
enable the association to employ cap
able men and to pay its overhead ex-
penses without bearing too heavily
on each PARTICULAR grower. In addi-
ton this minimum provision should
be enough to make that cooperative
the largest single factor in the trade
in. the area in which it operates.
With the poultry producers in Cen
trail California each contract had the
provision that the contracts would
not go into effect unless they were
signed in the aggregate by the own
ers of a million hens. When the mil |
lion hens were secured there was |
sufficient quantity of eggs In sight to |
absorb the ordinary overhead expen-
SEES and in addition to make that CO.
operative the largest single dealer In |
eggs in the state of California from
the first day that it opened its doors.
- With prunes the minimum provi-
sion was rs per cent Of the entire
prune acreage of the state of Cali
fornia. With each of the Independent
certain quantity is |
ixed so that no association will be
forced into the market with only a
nope, full set of officers, full equip
nent of overhead expenses-and no
crops with which to meet these ex-
oenses.
These overhead expenses will vary
With one Of the California coopera-
ives the cost Of doing business is
approximately 1 per cent, and sim
lar sum is spent for advertising.
With several other cooperatives doing
| business of less than $20,000,000 a
,ear, the actual working expenses are
ess than 21a per cent. Any cooper
tive doing business of 100000 or
more should be able to do that bust
less at from to per cent.
Then the contract must contain
PROVISIONS to discourage and prevent
reaches of contract by weak mem
ers. Every contract should provide
or liauidated damages, for injunction
o stop delivery to others than the
association, for DEGREES
f specific performance to compel de-
livery according to the contract and
or a Judgment for full costs and fees
gainst the preaching grower.
So much for the contract. If the
marketing association is
rganized along these lines, with con-
racts containing substantially these
royisions, it will not necessarily be
success, but it will have the proper
echnic, which will give it chance
DR. successful operation.
These are the rules to observe IN
uilding the machine.
First you must find the goal-de-1
,rmine just where you are going.
hen you must build the right type
{ machine to take you to that place.
fter the machine is built you have
ne other problem-who is going to
IN that machine and direct 1t to the
GAL Of successful cooperative mar
Gentleman, Septem-
er s, 1928.