The Carbon County news. [volume] (Red Lodge, Mont.) 1924-1931, 1928-08-23
SHEEP RAISING ON
RANCHES PLAN OF
LARGE COMP ANY
COOPERATIVE Raising Of
Stock Proving Great
Success in State.

Lewis Penwell and son, Fred, Of
Helena were visiting in Red Lodge
last Thursday and while here looked
into the matter of placing sheep on
Carbon county ranches under a CO.
operative plan. This will be done I'M
der the name of the Cooperative
Sheep company, of which Mr.. Penwell
is president and manager.
Among the stockholders Of this
company are Gov. J. E. Erickson, Sen
ator 7. j. Walsh, Senator B. K.
Wheeler, W. E. Harmon, state treas
urer; Dir. William A. Butler, state
veterinarian; Congressman John
Evans, Chief Justice L. L. Galloway,
A. G. Johnson, president Of the Amer
lean National bank of Helena; A. L.
Stone, president of the State Bank
of Dillon; Frank Reed, president of the
State bank of Twin Bridges; Jeff Dog
gett, president of the State Bank of
Townsend and the Parchen interests
of Helena.
Under the cooperative plan to be
used in placing the sheep, ranchers
whose integrity and ability are known
are given opportunity to take sheep in
bands of from 100 to 500. These sheep
are placed on the ranch without cost
to the rancher and are fed and cared
for by him under the supervision of
the company. The proceeds from the
sale of wool and lambs are divided
equally between the rancher and the
company.
"The Cooperative Sheep company"
Mr.. Penwell explained, twas organized
in 1926 with myself as president and
manager. Six thousand sheep were
placed in small bands on ranches in
southwestern Montana. The plan
worked so successfully for the stock
| holders and lessee of sheep that the
| following year the number of sheep
was increased and we now have 1900
head of sheep, all within Is miles Of
Butte.
This year we sold the wool and
lambs for top prices, DO cents for wool
and III cents for lambs. In Septem-
Der the company will divide between
the lessees and the company $170,000.
The company earned and paid to the
stockholders rs per cent dividend
last year, with every prospect of ex-
ceeding that amount this year. This,
Of course, represents an equal profit
to the lessees.
"This money earned by the lessees
stays in the community and the effect
is felt by merchants and bankers.
1.-THE cooperative method Of hand
ling sheep has been great help to
ranchers who have used it. 1t has
diversified their income and has not
added greatly to the expense of opera
ton. The revenue has been most sub
stantial. AS a result of it's activities
the company has been receiving letters
from all parts of Montana and from
interests outside the state, asking for
information.
From the very nature of the bust
ness it is destined to expand. We
nave spent a great deal of time in
viewing various localities to determine
where to go next. After an exhaus-
tive examination we have decided to
extend the zone of our operations to
include the Billings territory; that is,
generally, Billings to Red Lodge, to
Absarokee, to Columbus and along the
Yellowstone river east and west Of
Billings. On account of the abundance
Of water and feed this comprises an
ideal territory for the purpose.
another company, comprising for
the most part, the same persons now
in the Cooperative Sheep company,
will be organized and exactly the
same plan and with the same man
ager.
"The plan Of operation is to furnish
without charge, rancher who has the
proper facilities as large a number Of
young ewes as his ranch will care for
as we'll as the necessary number of
purebred bucks. The company pays
the taxes, one-half the shearing eX-
pense and all expenses of supervision.
"A Held man experienced III us
business visits the lessee once a week
all during the year to offer advice and
assistance. The company manager
sees the sheep about once a month and
the company veterinarian sees them
as frequently as is necessary.
"The company markets the wool and
sells the lessee's lambs. The lessee
may retain the lambs if he desires.
Revenue from both the wool and
lambs is equally divided between the
company and the lessee. Any loss is
also equally divided on the basis Of a
valuation of the sheep at what they
actually cost when turned over to the
lessee"