MISSISSfPPi 
 
 BU8JNESS SfDE OF FARMING 
 
 19 14 
 
 UNIV. OP CA! 
 EXPT. STA. LIB 
 
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 BULLETIN \:^C " °'- 
 
 DEPARTMENT OF MARKETS 
 AND RURAL ECONOMICS 
 
 A. & M. COLLEGE OF 
 MISSISSIPPI 
 
 June 20, 1914 
 
 The Business Side 
 of Farming 
 
 T. J. BROOKS 
 
 Professor of Markets and Rural Economics 
 
 WPRTHAW FBINTING COMPANY MERIDIAN, MISS 
 
f)i 
 
 INTRODUCTION. '^ 
 
 The farmer is a manufacturer: The soil, atmosphere, sunshine 
 and showers are the materials to which he applies his skill, and from 
 nature's laboratory is poured annually into the channels of trade the 
 materials from which is fed and clothed the teeming millions of the 
 earth. 
 
 The farmer is a business man: The selling of his surplus is the 
 great paramount source of the world's commerce ana trade. He 
 furnishes 600,000,000 tons of food annually to feed the nations of the 
 earth. 
 
 The farmer is a consumer of the materials turned out by the 
 great urban industries. He interchanges his products with those ot 
 other lands till all the nations of earth are linked together into one 
 stupendous whcle. 
 
 History is a voice forever sounding across the centuries the in 
 terpretations of man. Opinions alter, manners change, creeds rise 
 and far, but the law of cause and effect is written on the tablets of 
 eternity. 
 
 To trace the law of cause and effect in the past for future 
 guidance is a task of civilization. Present conditions are the com- 
 posite reflection of the operation of this law. Present tendencies are 
 prophetic, and to properly interpret is to be forearmed and empow- 
 ered to direct the course of history. 
 
 The farmer of today is going through a period or transition, 
 economically, industrially and financially. How to adjust his method-?, 
 habits and business to the changing order is one of tne difficuii 
 problems of the day which he alone can solve. To help in this task 
 is the prime object of this Bulletin. 
 
 The consumer furnishes the demand for production. He pays for 
 - tjp. (1) Cost of production. 
 ^J^^ ^c9\<2) Cost of distribution. 
 ^ xC ^^ (3) Profits of production. 
 xoW^** (4) Profits of distribution. 
 
 ^ (5) Waste of production. 
 
 (6) Waste of distribution. 
 The ability to consume is guaged by the power to earn. When so 
 much of the consumers earning power goes to defray the expense of 
 waste his consuming power is curtailed and the market he can furnish 
 the producer is less.ened. It be;hocFes both the producer and con- 
 sumer to eliminate waste, ' 
 
 The best statistics obtainable iijform us that proauction and 
 distribution 'kre 9^9^-ii eqiia^ factofs in establishing the retail price 
 to the ultimate consumer. Wc know i^at this can be greatly cheap- 
 ened by the producer assuming a larger share in the task of distribution 
 along lines demonstrated to be practical, efficient and economical by 
 the larger distributing concerns of the leading nations of the world. 
 
 There are two general divisions of business methods: 
 
 (1) Individual. 
 
(2) Collective. ' ' ^ 
 
 The individual method has been followed almost universaly from 
 the very earliest to very recent times. The development of modern 
 machinery, the corporation and the trust has eliminated this method 
 in the larger affairs of the business world. There is no individual 
 distribution by those who hire for wages. They do not own the 
 things they produce. The distribution is undertaken by the firm or 
 company owning the output. The workers in a shoe factory think not 
 of marketing the shoes they produce. This is done by the factory 
 owners; not as individuals either but by distributors under the 
 direction of the owners. 
 
 The same is true of the manufacture of machinery, furniture, 
 vehicles, mining, etc. A railroad has service to sell but the ones who 
 perform the individual service on the road or trains are not the 
 ones who set the price. This is the work of the corporate body 
 endowed by law with the powers of a personal entity. 
 
 When farming is done on the bonanza scale the same process ot 
 marketing is followed: The individual worker sells nothing but his 
 service; the corporation sells for all the workers and pays a stipulated 
 wage to them. , 
 
 When the ownership and operation is on the small scale the 
 business is at- a serious disadvantage in competing with the larger 
 business, both in power to handle a distributing system and in 
 economy of operation. This brings the farmer of tomorrow face to 
 face with the alternative of Collective marketing among the small 
 farmers or gradually retreat before the corporation farmer. The cor- 
 poration has superceded the individual in all other lines. Even 
 though corporation farming is outlawed it will not do away with the 
 need of collective distribution. 
 
 We need on!y to study the cooperative movement, as It Is now 
 progressing on both sides of the sea, to see its possibilities and under- 
 stand the details of its principles. What we do is mostly a matter of 
 choice but the consequences of what we choose to do are meted out 
 to us with cold precision as destiny swings the pendulum of time. 
 
 320928 
 
MENTAL ATTITUDE 
 
 The attitude of the public mind toward a movement is the greatest 
 factor in determining its fate. At bottom all movements are questions 
 of education. Impressions may hinder or help without being Dased on 
 a legitimate foundation. The hope of free institutions lies in a 
 thorough understanding of the facts involved in the vital problems ot 
 each day and generation. Prejudice often closes the door to reason 
 and prepares the way for the legitimate fruits of retributTon. 
 
 One thing confronting those who wou'd elect to help inaugurate 
 a new regime is the impression that whatever ills we now endure are 
 not of our making, and, therefore, we can do nothing to remedy them. 
 Not feeling to blame we look e'sewhere for the source of the trouble 
 and likewise for the remedy. This looking for sometnmg to blame 
 and to lean on enervates and destroys. Looking for remedies from 
 without rather than from within is a formidable obstacle in the way 
 of any inovation. Deferred hope ends in despair when self help is at 
 hand but ignored for a will-o'-the-wisp. An ounce of self help is worth 
 a ton of promises of demagogues. We like the instantaneous, the 
 spectacular, but the regeneration of a people never comes that route. 
 Permanent material and social improvement is a growth from within 
 and cannot be handed down from anywhere. 
 
 The first task is recognizing the agencies at hand "or self help. 
 The second task is appropriating these agencies in an enicient and 
 effective way. 
 
 More than four-fifths of the people of Mississippi are farmers, and 
 four-fifths of the wealth of the state comes from the soil. The state 
 is, broadly speaking, without large cities with the industrial spirit, 
 such as is found in the great manufacturing and mining centers. A 
 train of influences, both natural and artifical, have led the people to 
 feel that they are the victims of insect pests and political discrimina- 
 tion and that help must come to them and not from them. They are 
 inclined to regard the government as the source of all their il's, 
 other than the depredations of the weevil, and the only possible source 
 of help. When the unpalatable alternative of organized self he^p is 
 offered it is looked upon with prejudice, and it lacks tne charm of 
 a promise to restore that which has been allowed to leech away from 
 the producers for all these years. 
 
 The people have been relying principally on the one crop — cotton. 
 The depression following the inroads of the boll weevil has left 
 thousands with a feeling of helplessness. Many are leavmg the sec- 
 tions suffering worst from the march of the little Mexican invader. 
 The collective system has superceded home production in all the arts 
 and crafts industries. The only way the small man can avail himself 
 of modern appliances and agencies of distribution is by the collective 
 ownership of such agencies and plants as are necessary for the 
 assembling, preparing and distributing of his products. 
 
 Those who first suggest inovations requiring an outlay of money 
 and a change of long-established habits and methods are suspected 
 of sinister motives — this can be lived down. But the real difficulty 
 of the farmers is their distrust of each other and lacK of faith in 
 themselves. 
 
 The discouraging critic is always handy, saying that you c^n 
 arouse the farmer on politics, religion and war but thai you cannot 
 hold him to a voluntary association of humdrum business, nor make 
 
a success of enterprises based on democratic management rather than 
 on the poicy of one man control. We hope to make it easy for those 
 who have not made these things a special study to understand the 
 principles involved and the methods of their application. All should 
 know the modus operandi of a business guaranteeing each participant 
 his equity in the control, risk, responsibility, and profit that go with 
 the enterprise. 
 
 Land is not the only factor in agricultural production : it also 
 takes capital and labor. All three of these do not necessarily mean 
 successful farming. There must be sagacious business management 
 of the farm and of distribution of farm products — markeung. 
 
 If every farmer were a home owner it would simplify matters 
 immensely but it would not at all solve the rural problem. 
 
 A government has a head to it; when you deal with the 
 head you deal with the government. A corporation has a 
 head; when you deal with the head you deal with the corporation. 
 An incorporated town has a governmental head; when you deal with 
 the head you deal with the whole town. The country community 
 has no head; it has no source of authority; no composite method of 
 action; no organic entity. Neither has it any Industries to give em- 
 ployment to the people between the crop seasons when the country 
 people, especially the renter, could work and utilize many spare days. 
 Diversification and live stock will help this greatly and the develop- 
 ment of business associations will act as a welding force m community 
 life. There should be dairies, syrup-blending plants, broom factories, 
 canning enterprises, bacon factories, selling exchanges, etc., to create 
 community interests, utilize time and hold money In the country 
 now exported by the miUions for products that could be as readily 
 produced here as elsewhere. The experience and discipline gained and 
 the community interest built up would have a rejuvenating effect on 
 country life. The definition of "neighbor' was given two thousand 
 years ago; another way of defining it is "the one interested in the 
 same things you are." These enterprises should, one and all, be owned 
 and controlled by the farmer. He shou'd develop the commercial end 
 of farming the same as the commercial end of manufacturing has been 
 developed. 
 
 With the farmer looking at these things in the proper attitude of 
 mind they will be brought about, otherwise they will not. 
 
CORPORATE BUSINESS 
 
 There are three methods of conducting Corporate Business. 
 
 1 — The ordinary joint-stock method. 
 
 2 — The Copartnership or profit-sharing method 
 
 3 — The cooperative method. 
 
 Let us take them up in the order named and study the essential 
 qualities of each. The process of securing a charter is the same in 
 all three kinds. 
 
 The first was originally the only kind organized. This class has 
 but one purpose: the welfare of the stockholder. All net profits are 
 considered the rightful property of the stockholders. The voting power 
 is lodged in the shares. The shareholders may vote for the Board ol 
 Directors or other officers. The voting power may belong exclusively 
 to the ho'ders of common stock or may extend to the preferred stock. 
 It may have both preferred and common or all may be common. It 
 may have a voting Board which has all the voting powers. In either 
 case the profits go to the stockholders. Most of our industrial cor- 
 porations are of this kind. The defense for this type of corporation is 
 that those who assume the risk of failure and have their money 
 invested are due whatever returns the business may net. 
 
 The second class of corporations — the profit-sharing — goes one 
 step further and allows a certain percent of the profits to go to the 
 employees in addition to their wages, the bonus to be pro rata, based 
 on the salary or wages of each. This is calculated to tie the employees 
 to the company and encourage the "spirit of the shop" till strikes will 
 be a thing of the past. This plan is calculated to make the employees 
 feel that they are getting a square deal and they will have no desire to 
 destroy the business that gives employment and gives them all that the 
 profits will justify. This p an is coming in favor with quite a few 
 large employers. 
 
 The third kind or cooperative corporation goe3 still one step 
 further and includes the three absolutely essential factors in the 
 operation of any business: the stockholder, the employee and the cus- 
 tomer. Neither is more important than the other and neither should 
 have all the benefits of success. In the distribution of profits the 
 cooperative corporation limits the profits that go to the stockholder 
 just as profits are 'imited to a bond-holder. After paying expenses 
 the stockholder is a preferred creditor up to the rate which is estab- 
 lished as the rate. Next comes the employees and customers. The 
 employees get a certain percent pro rata, based on the earning of each. 
 The remainder goes back to those furnishing the business. If it is 
 a mercantile business the refund goes to the purchaser of goods in 
 proportion to value of purchases by memoers. Outside customers get 
 one half the rebate of members which may be credits till they amount 
 to a share and then a share may be issued. If it is a selling associa- 
 tion commissions are charged to cover expenses and a reserve; when 
 this has reached a specified standard the profits are returned to those 
 furnishing the shipments, to each according to the profits yielded by 
 his shipment. 
 
 In the control it is usually one man one vote regardless of the 
 number of shares owned. In a few instances the members vote 
 according to the volume of business furnished — so much business 
 counting a vote. The same principles apply whether the articles 
 
handled are eggs, poultry, live stock, dairy products, fruit, vegetables, 
 wheat, cotton or what not. Farmers' Exchanges never deal in futures 
 subject to settlement by forfeiture of margins. 
 
8, 
 
 Magnitude of Co-operative Business. 
 
 Cooperation as applied to business in the modern sense is of 
 comparatively recent origin. It has its beginning in the first half or 
 the Nineteenth Century. Its more recent developments indicate a 
 hea'thy and permanent growth in competition with other systems 
 long in vogue and permanently entrenched behind custom, habit and 
 law. 
 
 A Few Instances Showing [ts Magnitude. 
 
 Cooperative banking in Germany has reached the enormous annual 
 turn over of $6,000,000,000! 
 
 Cooperative merchandising and industrial business in England 
 has reached the $555,000,000 mark operating under one system, with 
 the wholesale department aggregating $150,000,000 a year. 
 
 Cooperative banking and purchasing in France runs into the 
 hundreds of millions annually. 
 
 Cooperation is so extensive in Denmark that on the average 
 every famer at the head of a family is a member of four cooperative 
 associations. 
 
 Cooperation in Italy has invaded agricultural production and the 
 public industries. Renters are buying land cooperatively. Wage-earn- 
 ers do their own contracting and employing cooperatively, thus doing 
 away with strikes. 
 
 Cooperation is gaining on other methods of business throughout 
 Europe, from Dublin to the Dardenelle and from Lisbon to Moscow. 
 
 Cooperation in America has developed mostly along the line of 
 selling agricu tural products. We have 1,268 cooperative dairies in 
 three states — Minnesota, Wisconsin and Iowa. We have 350 coopera- 
 tive cheese factories. (The creameries average about 800 cows; fewer 
 than 500 will not justify establishing one.) There are 6,300 creameries 
 in the United States. The dairy products of Wisconsin alone are 
 worth about $90,000,000 a year. 
 
 Minnesota has 275 cooperative elevators; Iowa 290; South Da- 
 kota 260; Illinois has 300, some of which are conducted on the 
 cooperative basis through a "gentlemen's agreement" for lack of 
 proper laws governing cooperatice corporations. A member of the 
 Chicago Board of Trade — five times the largest grain pit in the world 
 — Mr. Stickney, of Lowell Hoit & Co., gays that "the farmers of Illinois 
 save $9,000,000 a year by owning and operating cooperatively their 
 own e.evators. * * a greater benefit than the monetary side has 
 come. Everybody is becoming a student of cooperation, a topic that 
 overshadows all other questions." Unusual to come from the largest 
 speculative grain exchange in the world. We have some $20,000,000 
 invested in farmers' elevators handling between two fifty and three 
 hundred million dollars worth of garin annually. 
 
 The California Fruit Growers Exchange has a total business of 
 $20,000,000 a year. It is run strict y as a cooperative exchange. The 
 California walnut growers market cooperatively as much as $2,000,000 
 worth in a year — all cooperatively. 
 
 Colorado sells cooperatively $2,000,000 worth of fruit each year — • 
 mostly apples. 
 
 The East Shore of Virginia Produce Exchange, a truck farmers' 
 exchange, markets $4,000,000 worth of truck farm products annually. 
 It ships a car of potatoes for every hour in the year. 
 
Copying the Economics of Big Business. 
 
 All these examples of successful cooperative business exemplify 
 the possibility of conducting the distributive end of farming on the 
 sam.e principles that are followed by the big industrial corporations 
 and trusts without the monopolistic extortions for the benefit of a few 
 stockholding exploiters. 
 
 Cooperative business means: 
 1 — One member one vote. 
 
 2 — Stockholders limited in profits like bondholders, 
 3 — Distribution of net profits to customers and employees. 
 4 — Power to regulate membership and control transfer o£ 
 stock. 
 
10 
 
 Individual Marketing. 
 
 Individual marketing is still practiced by a majority of farmers. 
 In the absence of favorable conditions for collective marketing indi- 
 vidual marketing must be practiced. This can be done to different 
 degrees of efficiency. We make some suggestions wnlcii may be 
 approximated by those who would do more than merely haul their 
 produce to the nearest town and "get rid of it" the easiest way possible. 
 
 General remarks are of but little practical service. Each kind of 
 product to be sod requires a different detail of business. If you are 
 to venture to get a larger share of the price paid by consumers you 
 must find your own market. You must utilize the personal equation 
 as is done in all the walks of life, you must "work up" customers. 
 There are but two methods of doing this: by personal contact and by 
 correspondence. Whether you can be your own drummer and visit 
 the available markets depends on your nearness to the place and your 
 volume of business. 
 
 Suppose you wish to sell your eggs to a better advantage than 
 your local market offers, and your supply is not large or constant, and 
 you have no local association for marketing eggs; there is only one 
 recourse — the correspondence method. Your first task is to get a list 
 of the hotels, boarding houses, hospitals, restaurants, and private 
 families with whom you open up a correspondence, make your offers 
 and guarantee of fresh quality and prompt shipments. You must 
 provide yourself with proper equipments for shipping oy express or 
 parcels post. After you establish a trade and satisfy your customers 
 your great trouble will be to furnish a constant supply. Your cus- 
 tomers are apt to be more regular in their demands than your hens 
 are in supply. 
 
 The same course is open if it is butter you have to sell. It is the 
 same if vegetables. Getting a customer in one may lead to you holding 
 him as a customer for the other. Your protection will be the local 
 market with which your customer will aJways compare your prices. 
 This is sure to be on the average higher than the average price at 
 your station if a small town, but it may frequently happen that the 
 small town is a better market than the big city because of the crowd- 
 ing of the larger markets. Every one who thinks of shipping thinks 
 of the big cities and the medium size city is overlooked. 
 
 If it is live stock you have to sell you must have car shipments to 
 justify shipping individually. The finding of individual customers is 
 out of the question, in the sale of live stock for slaughter. Whether 
 you ship individually or collectively through an association live stock 
 are shipped to some one who has a stall rented at the stock yards, or 
 they are billed to the shipper himself. The shipper can bill the car 
 to himself and go along with them. They are turned over to the 
 stock yards company — a corporation owning the stock yards — whic>i 
 receives, feeds and waters them at a stated charge. The owner can 
 pick out his commission man to sell them for him, he can not sell 
 them himself. These commission men have pons rented and do a'' 
 the selling. If the owner does not go himself he ships to one of these 
 commission men whose name he gets out of ads in stock journals or 
 otherwise. When cattle, sheep or swine are placed in the pen of any 
 sales agent he sells them as he sees fit. He may sell immediately or 
 hold them over, in bunchej- or one at a time. For his trouble he gets 
 50c a head, regardless of the value of the animal, or a stated coia- 
 
11 
 
 mission. 
 
 If you ship produce to a municipal market the process is prac- 
 tically the same. Stalls are rented by produce venders and they sp' 
 on commission for customers who ship to them, and buy outright and 
 sell to their city customers. 
 
12 
 
 Municipal Markets. 
 
 By municipal markets Is meant city markets owned and operated 
 by the municipality. Corporations and shrewd business men do things 
 more economicaly than governments. Bureaucracy is the bane of 
 governmental cooperation. When a municipality takes the distribu- 
 tion of its food supply under its control it is open to the objection 
 inherent in sumptuary regulation. 
 
 On the other hand if we go to the other extreme of "free streets,' 
 "open air markets," and "push cart freedom" we have the oldest and 
 crudest way possible preserved through all the changes of the ages. 
 When the push cart peddlers scramble for the pittance of profits and 
 country growers compete for trade we have a system based on the 
 peasant class idea without regard to sanitation, uniformity of price, 
 standardization of markets or ultimate industrial effects. The 
 economic efficiency possible under this system is entirely dependent 
 on the poverty and low standard of living of those competing for the 
 trade. The system demands slaves fighting for existence on the basis 
 of a savage's standard of consumption. The plan cares nothing for 
 the creatures bidding for this means of a liveliehood. It demands vic- 
 tims for the sake of an apparent advantage. It demands slavery just 
 as much as did the rankest feudalism. To argue that it gives em- 
 ployment and that these people can't do anything else is just as well 
 taken as the claim that was urged in defense of slavery In every 
 age of the world. 
 
 Scores of American cities have established some form of municipal 
 markets. There are thirty cities with a population of over a hundred 
 thousand each that have established these markets. Many of the 
 leading cities of Europe have municipal markets. Some cities own 
 market houses but do not operate or supervise them — this is not a 
 municipal market. 
 
 The variations of detail are so numerous that we cannot go into 
 a full discussion of each type. Some cities conduct both a wholesale 
 and a retail business and others only retail. City markets, especially 
 wholesale, should be located near railroad terminals, and if the city is 
 on a waterway, as near as possible to the water front. This favorable 
 location saves enormous expense in carting from cars and boats to 
 market places, some going to the wholesale depots, some to the re- 
 tail stations and some back to cars or wharfs for reshipment. 
 
 These markets receive shipments from country merchants and 
 truck growers and associations. When shipments are received the 
 market employees open, assort and if necessary repack; the stuff is 
 sold to the local retail merchants, commission men and to groups ot 
 consumers who buy in quantities. The retail markets are equipped 
 with stalls which farmers and retail merchants rent from the city 
 In the most up-to-date markets a cold storage is operated where 
 venders may rent space for any perishable produce that fails to se'j 
 at once. The city uses the rest to operate the market. 
 
 In addition to the covered market there are open air markets and 
 curbstone markets where wagon space is rented for a small fee to 
 farmers and other vendors. These markets are patronized by retail 
 and commission men and consumers. In the municipal markets the 
 widest range of eatables are offered for sale. All available farm vege- 
 tables, dairy products and meats (land and water), are displayed so 
 
13 
 
 that the housekeeper can find a full assortment without going else- 
 where to complete purchases. 
 
 The market system of Paris is the most extensive in the world. 
 It consists of a central wholesale depot and many smaller retail 
 markets located at convenient points. The Halles Centralle is the 
 center, and consists of ten buildings covering twenty-two acres, all 
 under one roof. The pavilions and three half pavilions are devoted 
 to a wholesale and the rest to a retail trade. Produce is shipped in 
 from all parts of the country and sold at wholesale, at auction or by 
 private sale, to retailers, marketmen or consumers buying in lots. 
 Sales are conducted by licensed commission men, appointed by the 
 police, the commissions are fixed by law. 
 
 Budapest has a municipal market consisting of a central whole- 
 sale and six retail markets. A large variety of merchandise other than 
 foods is sold. A small fee is charged for the stalls, which are raserved 
 for marketmen and producers. Any one can ship produce in with 
 perfect assurance that he will get a square deal. Great glass tanks oi 
 fresh water are kept for receiving fish shipped in alive where they 
 can be fed and kept indefinitely. On visiting the market I was im- 
 pressed with the sanitary precautions and the businesslike aptitude 
 disp ayed by customers when making purchases. 
 
 The Market Commission publishes daily bulletins of wholesale 
 prices and weekly bul etins of retail prices. It yields a large commis- 
 sion to the city. 
 
 Among the leading cities of the United States wihch have munic- 
 ipal markets in a progressive sense may be mentionel Baltimore, 
 Cleveland, Des Moines, Dubuque, Houston, Los Angeles. 
 
14 
 
 The FederallOflice of Markets. 
 
 In February, 1912, the writer handed a bill to Senator Hoke Smith 
 of Georgia, providing for the establishing of a government Bureau of 
 Markets, with the request that he assume responsibility for it in the 
 Senate and if he did not care to do so that the search would be con- 
 tinued till one was found who would. He accepted the bill and 
 passed it through the Senate Aug. 21, 1912. It went to the House and 
 was referred to the Committee on Agriculture which made a favorable 
 recommendation. (The name had been changed to "Division of Mar- 
 kets.") However, instead of passing the bill it was dropped, and an 
 item placed in the appropriation bill authorizing the Secretary of 
 Agriculture to institute the work on his own initiative: fifty thousand 
 dollars was placed at his disposal to carry on the work and twenty- 
 five thousand dollars were made available to work on the cotton mar- 
 keting problem. (The name it now bore was "Office of Markets.) 
 
 In the act making appropriations for the department of Agriculture 
 for the fiscal year ending June 30, 1913, an item was included directing 
 the Secretary of Agriculture to secure from the various branches of 
 his Department reports relating to the systems of marketing farm 
 products, cooperative and otherwise, now in practice; the demand for 
 products at the trade centers and to make such recommendations as 
 be deemed necessary. In the report made to Congress in response to 
 this order the provisions of the original market bill were fully 
 vindicated. 
 
 The appropriation bill of 1914 increased the item on markets to 
 $200,000.00 to continue and extend the work begun. So that the 
 Office of Markets, dovetailed into the Department of Agriculture, is the 
 newest branch of federal activity and is only a year old. Its primary 
 purpose is to ascertain and make known the most effective and 
 economical methods for propertly distributing and marketing farm 
 products. 
 
 The, principle lines of investigation pursued during the first year 
 have been: 
 
 First — Cooperative production and marketing. 
 
 Second — Market surveys, methods and costs. 
 
 Third — Market grades and standards. 
 
 Fourth — City marketing and distribution. 
 
 Fifth — Transportation of farm produce. 
 
 Sixth — Storage problems. 
 
 Seventh — Marketing miscellaneous products and collaboration. 
 
 Eighth — Marketing by Parcels Post. 
 
 Ninth — Cotton handling and marketing. 
 
 It is now working on the problem of marketing of dairy products. 
 
 It is also taking up the study of marketing live stock and meats. 
 
 The Office of Markets is to make war on waste, not men or voca- 
 tions. The only item to credit is efficient service. We need to 
 develop efficiency engineers in business as well as in mechanical 
 construction. The farmer must learn to perform the function of those 
 he would eliminate. Unless he is willing to do this his complaints 
 are childish. Unless he is willing to take up the slack he will have to 
 bear the expense incident to lost motion. 
 
 Investigation in the local cotton markets of Oklahoma showed 
 great loss to the farmer under the present system of marketing in the 
 failure to secure the premium for higher grades which is paid by 
 
15 
 
 exporters and spinners. . The premium for the higher grades being 
 only about half that allowed on the Exchanges. 
 
 On a community basis the workers in this new governmental field 
 are urging farmers to practice cooperative distribution. The market 
 surveys embrace inquiry into available market supplies in production 
 areas and demand at consuming centers, quantities of produce in 
 storage, prices, commission, brokerage, auction and other methods of 
 marketing, the effect of exchanges, increase in price at each change of 
 hand in the process of distribution, the part that transportation plays 
 in marketing. 
 
 The Office of Markets stands for: 
 
 Standardization of grades and containers; 
 
 Elimination of waste; 
 
 Maximum efficiency. 
 
 Among the essentials of successful cooperating in the selling of 
 farm products may be mentioned: 
 
 1 — The volume of business must be large enough to sustain the 
 business by paying all selling expenses at a very low charge. 
 
 2 — There must me a proper understanding of the local conditions, 
 the favorable and unfavorable to the particular project contemplated. 
 Availability of market, stability of demand, ability to fill contracts in 
 case the business requires sale before shipments. 
 
 3 — Stanndardization of product and guaranteeing everything ship- 
 ped to come up to grade or be of the quality specified; copyright 
 trademark for protection of the Association. 
 
 4 — Legalized Loyalty: Securing bonafide contracts from the 
 members that their output of the thing to be handled shall go through 
 the Association or pay the same commission on the sale that they 
 would have paid had the Association handled it, — or require that 
 all bids be turned in to the Association. 
 
 5 — Efficient local leadership. This essential must not be ignored. 
 Without it there is no chance to succeed. It is hard to secure, at the 
 price that can be paid when the business is small and the membership 
 need so much coaching in details and discipline in compliance with 
 the necessary regulations. 
 
16 
 
 By-Law^s lor E^^ Shipping Assiociation. 
 
 Declaration 
 
 This association has for its object the increasing of profits of 
 poultry raisers by cooperation. It seeks to reach its object — 
 
 (a) Bl standardizing the product and guaranteeing quality; 
 
 (b) By selling direct to consumers as nearly as possible; 
 
 (c) By buying poultry supplies by wholesale; 
 
 (d) By a better understanding of the poultry business. 
 
 This local association shall be known as the 
 
 and may become a member of the General Cooperative Poultry 
 Association of Mississippi and become subject to the rules of the 
 General Association. 
 
 Application must be made to the Local Association and upon 
 approval by unanimous vote of those present at the meeting or by vote 
 of the Board of Directors, when action is needed between meetings, 
 shall be admitted on the payment of the fee of $1.00 which is to go 
 to the treasury as a permanent revolving fund to be used by the 
 manager for incidentals but to be replaced as profits are received from 
 the commissions on sales. 
 
 Members must de iver all of their eggs to the individual appointed 
 to receive them and at the time and place designated: unless otherwise 
 ordered the time sha 1 be once a week during the fall and winter 
 months and twice a week during spring and summer months. 
 
 After the hatching season is over each member must separate the 
 males from the flock that the eggs may be infertile. No eggs in winter 
 shall exceed seven days in age, and in summer shall not exceed four 
 days in age. Any member delivering a stale egg is punishable by a 
 fine of one dollar to be collected by the directors. The Manager shall 
 instruct the members how to candle eggs that mistakes may easi y be 
 avoided. 
 
 The eggs must be collected from the nests each day. Eggs of un- 
 known age must not be delivered to the association. Artificial eggs 
 must be used for nest eggs, and no egg shall be offered for sale through 
 the Association that a hen has covered for one night. 
 
 Dirty eggs, eggs below the average in size, or abnormal in shape 
 must not be deivered, and the eggs must be kept in a warm room in 
 winter and in a cool dry room in summer, and in deivery must be 
 protected from the direct rays of the sun. 
 
 Unless by special permission the members shall not put'chase 
 eggs for delivery to the association. 
 
 Each member must have a number which is stamped on the top 
 end of each egg. Each member receives on the payment of dues a 
 stamp and pad, and thirty one-dozen cartons containing the name of 
 the Association on the cover. Eggs are always to be brought in those 
 cartons and in boxes made according to specifications which will be 
 given by the Association. 
 
 The receiver of the eggs must notify the member of the eggs 
 brought by him not suitable for shipment and save them for him 
 until the next visit. 
 
17 
 
 All collections must be made by the receiver who is to be allowed 
 one and one half per cent, or not to exceed this amount for handling 
 the eggs. A triplicate pad with blanks in consecutive numbers must 
 be kept by the collector, one sheet must be given in to the customer, 
 one to the bank where the deposits are kept, and the tissue paper 
 sheet in this book must be kept by the collector for his own files. 
 
 Notice of withdrawal must be given to the Directors thirty 
 days in advance and no member who withdraws shall have any share 
 in the profits or equipment, if the withdrawal takes place before the 
 end of the contract. 
 
 The Board of Directors is composed of three members elected by 
 the Association, — the chairman, the secretary and the treasurer. At 
 least two of the directors shall be ladies. It is the duty of the Board 
 to see that all regulations are complied with, find markets, and audit 
 the books. 
 
 If for any reason the Association should be dissolved, the surplus 
 that may have occurred and all money derived from the sale of equip- 
 ment shall be divided among all members in good standing. 
 
 The amount of the reserve fund is to be determined, by the 
 Board of Directors. 
 
 REFERENCES TO READ 
 ON 
 MARKETING EGGS 
 Powell, Cooperation in Agriculture — pages 161-181. 
 Poultry Husbandry, 
 
 Mar. 1913. "On the Trail of an Egg Circle." 
 June 1913. "A Study of Egg Production." 
 
 Cornell Promoting Cooperation. 
 Sept. 1913. "Most Profitable Way to Market Eggs." 
 The Formation of Cooperative Egg Circles. 
 Oct. 1913. "The Boosting Power of Cooperation." 
 Febr. 1914. "The Common Good." 
 Page entitled "The Common Good" is worth reading in nearly 
 every issue of Poultry Husbandry. 
 
 Yearbook, U. S. Department of Agriculture 1911, pages 467-47>?. 
 Bulletin No. 132, Minnesota Experiment Station. 
 
 "Studies in Egg Marketing" — By C. W. Thompson. 
 Bulletin No. 141, Bureau of Animal Industry. 
 
 "The Improvement of the Farm Egg." 
 Bulletin No. 160, Bureau of Animal Industry. 
 
 "The Care of the Farm Egg." 
 Circular No. 140, Bureau of Animal Industry. 
 
 "The Egg Trade of the United States." 
 Farmers' Bulletin No. 445, U. S. Department of Agriculture. 
 Yearbook U. S. Department of Agriculture 1912. 
 
 Price of eggs by months, page 686. 
 
 Receipts at leading markets, page 688. 
 
18 
 
 HoM^ to Organize a Creamery 
 
 When the farmers of a community decide to take steps toward 
 organizing a Co operative Creamery or Cheese Factory, it is advisable 
 for them to call for assistance from the State Agricultural College 
 
 A man fami'iar with the work can give valuable advice and in- 
 formation in the way of organizing, locating, building and equipping 
 the factory. 
 
 FIRST MEETING 
 
 A temporary chairman and secretary should be elected. The 
 advisability of starting a creamery or cheese factory and the location 
 of same should be discussed. The value of each share should be 
 decided upon. 
 
 If it be deemed advisable to form an association, a committee 
 should be elected to canvass the surrounding territory to ascertain 
 if there are a sufficient number of stockholders and cows to warrant 
 organizing an association. 
 
 ORGANIZATION, AGREEMENT. 
 To Be Used at First Meeting. 
 
 We, the undesigned citizens of County, 
 
 State of do hereby agree to form ourselves into an 
 
 association for the purpose of ., and to 
 
 take shares of stock, at the rate of dollars 
 
 each, and furnish the milk or cream from the number of cows set oppo- 
 fcite our names. 
 
 New members may come in by signing contract to be furnished. 
 
 Provided, however, that if cows and 
 
 stockholders are not secured before 19.., this agreement 
 
 shall be null and voil. 
 
 NAMES. 
 
 SHARES. 
 
 COWS. 
 
 ARTICLES OF INCORPORATION OF CREAMERY. 
 
 We, the undersigned persons hereby become associated for the 
 purpose of organizing a co-operative association under and pursuant 
 to the laws of the State of for buying, selling, manufactur- 
 ing and dealing in milk, cream, ice cream, butter and cheese and 
 generally conducting a creamery business, v/ith power and authority to 
 do and perform all acts and things usually requisite and necessary in 
 carrying on such business, and have organize'l by adopting and signing 
 the following articles of incorporation: 
 
 ARTICLE I. 
 
 The name of this Co-Operative AssociaHon shall be 
 
 The nature of its business shall be buying, selling, manufacturing and 
 dealing in milk, cream, ice cream, cheese, p.nd butter, and handling, 
 managing, owning, operating and controllinir a creamery or creameries 
 in the usual course of such business, and to do and perform all acts 
 and things- usual, requisite and necessary r n the premises, and the 
 principal place where the business of sa rl co-operative association 
 
 shall be transacted is in the , in tho. county of and 
 
 State of It shall have all of tho power of a body politic, 
 
 to sue and be sued, own real and personal property and e^^ercise sucU 
 power as its business demands. 
 
19 
 
 ARTICLE 11. 
 The time of commencement of said co-operative Association shall 
 
 be the day of 19 , and the period of its continuancy 
 
 shall be twenty years. 
 
 ARTICLE III. 
 The amount of capital stock of said Co-operative Association shall 
 
 be dollars, and shall be divided into shares of 
 
 dollars each, and shall be paid at such a time and in such manner as 
 the By-Laws of this Association shaU direct. 
 
 ARTICLE IV. 
 The highest amount of indebtedness or liability which said Co- 
 operative Association shall at any time contract shall not exceed 
 
 dollars. 
 
 ARTICLE V. 
 The name and residences of the persons forming this Co-operative 
 
 Association are as follows, to-wit : 
 
 ARTICLE VI. 
 The government of this Co operative Association and the manage- 
 ment of its affairs shall be vested in three or five directors, and the 
 following officers to-wit: 
 
 A President, Vice-President, Secretary and Treasurer, and such 
 Directors and Officers shall be e'ected by ballot at the annual meet- 
 ing of the Stockholders, which shall be held on the last Tuesday in 
 January of each year. 
 
 ARTICLE VII. 
 The names of the Board of Directors of this Co-operative Associa- 
 tion are as follows: President, ; Vice-Presideni, ; 
 
 Secretary, ; Treasurer, ; Directors, 
 
 ARTICLE VIII. 
 The aforesaid Board of Directors shall hold their respective offices 
 until their successors are elected and qualified. 
 
 ARTICLE IX. 
 This Co-operative Association may be dissolved at any regular or 
 special meeting of the stockholders, provided that two-thirds of such 
 stockholders vote for the dissolution, and each stockholder shall have 
 but one vote in person. 
 
 ARTICLE X. 
 This certificate of incorporation may be amended at any general 
 meeting of the stockholders or at any special meeting called for th 
 purpose upon ten days' notice to the stockholders. 
 
 IN TESTIMONY WHEREOF, We, the said Incorporators, have 
 
 hereunto set our hands and seals, this day of A. D., 19. . . 
 
 IN THE PRESENCE OF 
 
 STATE OF 
 
 ss 
 
 COUNTY OF 
 
 BE IT REMEMBERED THAT ON THIS day of 
 
 A. D., 19.... before me, a notary public within and for said County, 
 
 personally appeared to me known to be the persons 
 
 described in the above and foregoing instrument and whose names are 
 subscribed hereto and severally acknowledged that they executed the 
 same freely and voluntarily for the uses and purposes therein 
 expressed. 
 
 Notary Public. 
 
 BY-LAWS. 
 
 The President shall preside at all meetings of the Assoqis^tion. In 
 
20 
 
 his absence the Vice-President shall preside; if both are absent, a 
 temporary chairman may be elected. He shall have power to ca I 
 a special meeting of the Association whenever, in his judgment, the 
 business of the Association shall require it. He shall also, upon a 
 written request of ten stockholders or three members of the board r 
 diriectors, call a special meeting. 
 
 2. The Vice-President shall perform the duties of the President 
 when the latter is absent or unab e to perform the duties of his office. 
 
 3. The Secretary shall keep a record of all the meetings of the 
 Association and make and sign all orders upon the Treasurer and pay 
 over to the Treasurer all money which comes into his possession, 
 taking the Treasurer's receipt therefor. The Secretary shall make a 
 report to the Association at its annual meeting, setting forth in detail 
 the gross amount of milk and cream receipts and the net amount 
 of receipts from products sold and all other receipts, the amount paid 
 out for running expenses, the sums paid out for milk and cream, and all 
 other matters pertaining to the business of the Association. A like 
 statement shall be made each month and posted conspiciousiy in t^- 
 creamery building at the time of the division of the previous month's 
 receipts aforesaid. The Secretary shall give bonds in the sum of 
 dollars, same to be approved by the Board of Directors. 
 
 4. The Treasurer shall receive and receipt for all moneys 
 belonging to the Association, and pay out the same only upon orders 
 signed by the Secretary. The Treasurer shaF give bond in the sum 
 of dollars, same to be approved by the Board of Directors. 
 
 5. The Board of Directors shall hold at least one meeting every 
 three months for the purpose of ascertaining the true condition of the 
 affairs of the Association. At the meeting of the Board of Directors, 
 no other person shall have a right to vote but the Directors, 
 unless in case of a tie, when the President shall be authorized to cast 
 the deciding vote. 
 
 6. A sinking fund shall be provided by taking from each pound 
 of butterfat or each hundred pounds of milk delivered, such amount 
 as the stockholders may vote at their annual meeting, such sinking 
 fund to be used on^y for paying insurance and taxes, buying new 
 machinery, and for erecting new buildings or improvement of bu' 
 ings; also for advancing money on supplies, and for paying interest 
 and dividend on stock, if any are paid. Provided, however, that such 
 a sinking fund may be entirely discontinued for a time if the Boar^' 
 of Directors shall decide this to be for the best interest of the Asso- 
 ciation. 
 
 7. Each stockholder shall furnish all the milk and cream from 
 the cows he has, all milk and cream to be sound, fresh and unadulter- 
 ated, and patrons of the Association not stockholders may furni-'^ 
 such amounts of milk or cream as they have. The Association sha^' 
 receive and sell such milk or cream, manufacture the same into 
 butter, cheese or ice cream, and receive all money from the products, 
 and from money so received deduct such a percentage thereof as sha 1 
 have been agreed upon by the Association, in the By-Laws or other- 
 wise, and deduct the running expenses of the creamery, the remainder 
 thereof to be distributed among the stockholders and patrons propor- 
 tionately to the amount of who'e milk or fat furnished by each. 
 
 8. All milk or cream shall be delivered at the creamery of 
 cheese factory during the forenoon and at least three times a 
 week; the same to be sweet and in good condition, and if any be found 
 otherwise, the operator shall reject same. The operator shall preserve 
 a sample of each delivery of each patron's milk or cream, testing sam^ 
 at proper intervals. 
 
21 
 
 P. Any person sending to the factory any impure or unhealthy 
 milk or cream, or any milk drawn from cows within fifteen days before 
 or five days after giving birth to a calf, shall upon conviction thereoi 
 be subject to a fine of five dollars for the first offense, for the second 
 offense ten dollars and for the third offense he or she shall forfeit his 
 stock and membership, 
 
 10. Salaries of all officers of this Association shall be fixed by the 
 stockholders. 
 
 11. The Board of Directors shall have full authority to employ 
 the butter or cheese makers, and all other help needed for the opera- 
 tion of the factory. 
 
 12. Whenever, from any cause, a vacancy occurs m any of the 
 offices of the Association, the Board of Directors shall fill by appoint- 
 ment any such vacancy, and the person so appointed shall hold the 
 office until the next annual meeting of the Association, and he sha 
 have the same power and be subject to the same duties and liabilities 
 as the officer regularly appointed. 
 
 13. All shares shall be paid for in cash or by bankable note. 
 When a note is given to the Association for stock, it may be paid by 
 a certain percentage deducted from each pound of butterfat or each 
 hundred pounds of milk delivered by the stockholder. Provided, how- 
 ever, that no certificate shall be issued nor any interest paid on any 
 share of stock until it is fully paid. 
 
 Be it further provided, that all stock may be retired as fast as 
 money accrued from the sinking fund will allow. All stockholders 
 shall receive six (6) per cent, interest on their stock until it is retired 
 by the Association. 
 
 14. Notice of any meeting of the stockholders of the Association 
 shall be posted at the factory by the Secretary at least ten days 
 before such meeting. Three days notice, posted in the same manner, 
 shall be given before any meeting of the Board of Directors. 
 
 Any stockholder or patron shall have the privilege to appear before 
 the board at any of their regular meetings to present any grievance 
 or any other matter. 
 
 15. Two-thirds of the stockholders shall constitute a quorum at 
 any meeting of the Association. A majority of the board shall con- 
 stitute a quorum at any board meeting. 
 
 16. If any competitor raises the price of butterfat above its mar- 
 ket value, any stockholder shall have the right to sell his milk or 
 cream to such competitor, provided that the cream is first weighed 
 and tested at the factory, and one cent per pound of butterfat is paia 
 to the Association for maintaining the creamery. Violation of this sec- 
 tion shall render the offender liable to the amount of one per cent, 
 of his sales to the competitor against his stock in this company. 
 
 17. These By-Laws may be amended or changed at any annual 
 meeting of this Association by a two-thirds majority of the stock 
 holders present and voting thereon. They may also be changed by a 
 two-third majority of the stockholders present at any special meeting 
 of the Association called for such purpose. A notice of such meeting, 
 however, shall be mailed to each stockholder at his last known address 
 at least ten days before such meeting. 
 
Suggested Form ol Constitution lor the Organiza- 
 tion of Farmers' Co-operative Shipping 
 Association. 
 
 Article 1. Name. The name of this organization shall be 
 
 Article 2. Place. The place of the operation shall be in 
 
 and vicinity, and all regular and special meetings shall be he'd in 
 as prescribed in the By-Laws. 
 
 Article 3. Time. The time over which this organization shall 
 extend shall be twenty years. 
 
 Article 4. Purpose. The purpose of this organization shall be to 
 obtain reasonable prices, and to secure the best possible results in 
 the marketing of live stock and farm produce. 
 
 Article 5. Membership. Any person r^aking use of the shipping 
 facilities of this association shall be entitled to membership by pay- 
 ing a membership fee of 
 
 Article 6. Officers, ^ihe officers of this Association shall be a 
 President, Vice-President and a Board of Directors, who sha 1 be 
 elected at the annual meeting; and in case of a vacancy, from resig- 
 nation or otherwise, the Board of Directors shall appoint a successor, 
 who shall hold office until the next annual meeting, or until his suc- 
 cessor has been elected and qualified. All officers shall ho d oflice for 
 one year, or until their successors have been elected and qualified. 
 The Board of Directors shall appoint a manager who shall act as Sec- 
 retary and Treasurer of this Association. 
 
 Article 7. Management. This organization shall be managed by a 
 Board of Directors, composed of five members of the Association, who 
 shall be elected at every annual meeting, and the President and Sec- 
 retary and Treasurer shall be members of this board,, and said officers 
 shall occupy the same position in the board as in the organization. In 
 the case of vacancy caused by resignation or otherwise in the mem- 
 bership of the board, the same shall be filled by the remaining mem- 
 bers of the board, and the members so elect'id shall hold office for 
 the unexpired term, or until the members so elected shall have 
 qualified. 
 
 Artie e 8. Amendments. Amendments to this Constitution may 
 be made at any regular meeting, by a two-thirds vote, when thirty day.? 
 notice of the tame has been given by announcement to the members. 
 
 Article 9. Quorum. A majority of mero.bers of the board shall 
 constitute a quorum, and may do any business that may properly come 
 before said board. 
 
 Article 10. By-Laws. By-Laws and rules covering the operation 
 of this Association may be made from time to time in the manner 
 prescribed for the amendments to this Constitution. 
 
 SUGGESTED BY-LAWS FOR THE ORGANIZATION OF FARMERS' 
 
 CO-OPERATIVE SHIPPING ASSOCIATIONS IN 
 
 MISSISSIPPI. 
 
 Chapter 1. The shipment of stock in this Association shall be 
 made regardless of mem.bership, and the delivery of stock to the man- 
 ager and the acceptance thereof by him binds the shipper to the rules 
 and by-laws of this Association. All who desire to ship stock with the 
 Association shall report to the manager the kind of stock, the number 
 of each kind, and the approximate weight of each when it is ready 
 to be marketed. When a sufficient amount of live stock has been 
 reported to be ready for shipment to make a full carload, the manager 
 
23 
 
 shall order a car for making the shipment, and shall notify each party 
 having stock listed, and state at what time the stock is to be delivered 
 for loading. 
 
 Chapter 2. Section 1. Duties of Marager. The manager shall be 
 at the yard on the day the shipment is to be made, unless he shal 
 have secured a competent substitute, and shall receive all stock, and 
 weigh, mark and load the same on the car. He shall have charge of 
 and direct the sale of all shipments, and receive all money therefor, 
 and pay the same to the shippers, less his commission and all other 
 expenses incurred in making the shipment or when so directed send 
 the money by mail to the shippers. He shall furnish a statement to 
 every shipper, showing net weight, price received and expenses ot 
 shipment. He shall keep on file a comp'ete statement of settlement, 
 together with returns from commission firm selling the live stock for 
 the Association. In a book kept for that purpose, he shall keep a 
 record showing the number of cars shipped, and the amount of stock 
 in such cars, during the year. He shall also keep an account of all 
 disbursements and receipts for the association. At the annual meet- 
 iing, he shall furnish a detailed statement of all business done during 
 the year. 
 
 Section 2. The manager shall receive as compensation for his 
 
 services the amount of cents per hundred pounds, and no other 
 
 compensation from the association, except that he shall have the right 
 to charge for any outlay for materials needed in making partitions to 
 separate the stock in the car and for bedding, said amount to be 
 charged to the expense of the shipment for which it was incurred. 
 
 Section 3. The manager shall furnish a satisfactory bond, wh 
 shall be approved by the Board of Directors. Said bonds shall be for 
 the faithful discharge of his duties. 
 
 Chapter 3. Section 1. Protection Fund: There shall be deducted 
 on every hundred pounds of weight of hogs and sheep, three cents, and 
 for every hundred pounds in weight of cattle, two cents, and the same 
 shall be placed in the sinking fund, to be used for tbe paying of losses 
 that may occur to any 'stock from the time it comes in the hands of 
 the manager until final disposition of same is made. 
 
 Section 2. Losses — How Paid: Any shipper whose stock has 
 been damaged by injury while in the hands of the manager, shall re- 
 ceive the full amount for same as though the stock had not been 
 injured, but shall be subject to the same ratio of expense on the ship- 
 ment. The payment of the damage shall be based on a state- 
 ment made by the commission firm having charge of the ship- 
 ment, which statement shall show the amount received for the in- 
 jured animal, the amount, in their opinion, it would have brought had 
 it not been injured. This statement shall be the final basis for the 
 settlement. No damage shall be paid for an animal which was not in 
 a healthy condition when received at the local yards by the manager. 
 
 Chapter 4. Section 1. Unhealthy Stock: All stock which must 
 be sold subject to inspection, except such as has been injured while 
 in a heaUhy condition and in charge of the manager, or any diseased 
 animal, shall be received at the owner's risk, and he shall receive 
 payment therefor as is received by the commission firm, less alL ex- 
 penses figured pro rata on the shipment. 
 
24 
 
 Business Forms 
 
 P. O. 7 
 
 Date, August 23, 1914. 
 
 Received from T. O. Anderson, 1 mark. 
 
 4 Hogs, 850 pounds. 
 1 Sow, 420 pounds. 
 
 1 Cow, 1100 pounds, X. 
 
 1 Heifer, 900 pounds, X. 
 
 2 Steers, 2200 pounds, X. 
 
 3 Veals, 480 pounds, X. 
 
 5 Sheep, 620 pounds. Red Head. 
 
 Forty pounds off on piggy sows, 80 pounds off on stags, Ic off on 
 cripples. 
 
 FARMERS' SHIPPING ASSOCIATION, 
 
 Manager. 
 
 The above is a form of receipt made in duplicate by the manager 
 to each patron, when stock is delivered, showing the number, kind and 
 weight of animal- received, and mark used. One copy is retained by 
 the manager and the other given to the patron. 
 
 STATEMENT 
 
 Farmers Shipping Association 
 
 Freight 
 
 Mgr's Com... 
 
 Incidental Ex. 
 
 Car No Yardage 
 
 R. R. Manager Selling Com.. 
 
 Date Mississippi Gain or loss. . . 
 
 N«. 
 
 Weight 
 
 Shrink'o! Net Wt 
 
 Price 
 
 Expense Frt. To Bal. 
 Com.Yrdo & Acct. 
 
 Form of statement used and retained by the manager as a perma- 
 nent record of each car shipped. 
 
 LIVE STOCK RECEIVED. 
 
 Date. . 
 XVIII I 
 
 Mark 
 
 Name 
 
 No. of 
 Head 
 
 Weight! Kind. 
 
 I 1 
 
 D .B. Aycock 
 
 1 8 
 
 1 9400 
 
 1 Cattle 
 
 " 1 
 
 T. M. Patterson 
 
 1 1 
 
 1 1100 
 
 1 Cattle 
 
 III 1 
 
 J. E. Bonner 
 
 1 2 
 
 1 zooo 
 
 1 Cattle 
 
 IV 1 
 
 H. 0. Pate 
 
 1 3 
 
 2735 
 
 1 Cattle 
 
 V 1 
 
 H. Bending 
 
 1 2 
 
 1 2250 
 
 1 Cattle 
 
 VI I 
 
 W. Gernon 
 
 I 1 1 1400 I Cattle 
 
25 
 
 VII 
 VIIl 
 IX 
 X 
 
 XI 
 
 XII 
 
 XIII 
 
 XIV 
 
 XV 
 
 XVI 
 
 XVII 
 
 XVIII 
 
 XIX 
 
 XX 
 
 Cards used by the manager to record the numbers, weight and 
 mark of stock as received from each patron in order to avoid dupli- 
 cating numbers. 
 
 Statement to each patron 
 
 Miss 19 
 
 M. 
 
 In account with 
 FARMERS SHIPPING ASSOCIATION 
 Manager 
 
 Animals 
 
 Hogs 
 
 No. 
 
 Home 
 Weight Share 
 
 Net 
 
 Price 
 
 $ 
 
 Cts. 
 
 
 
 
 
 
 
 
 Cows 1 
 
 
 
 
 
 
 
 Steers 
 
 
 
 
 
 
 
 Veals 
 
 
 
 
 
 
 
 Sheep 
 
 
 
 
 
 
 
 
 
 Total received 
 
 for youi 
 
 • stock . . 
 
 $ 
 
 
 EXPENSES. 
 
 I Frt., other expensd ; Chicago | 
 
 & Mgr's. Com. Yardage com. Total Expenses 
 
 Total Expense on your stock $ 
 
 Balance due you $ 
 
 NOTE: — The above is a form of a statement used by the manager, 
 accompanied by a check, in making returns to the patrons after the 
 returns for each shipment are received. The items, "Freight", "Selling 
 Commission" and "Incidental Expenses" may be combined in one item 
 if desired. 
 
26 
 
 General Porm of By-LaM^s 
 
 FOR A COOPERATIVE MARKETING ASSOCIATION 
 
 SECTION 1— Name. 
 
 This association shall be known as the ( County 
 
 Association)* incorporated under the laws of the State of 
 
 Its place of business shall be in the the (City of ), 
 
 NOTE — The name should indicate the territory covered and the 
 c'ass of products handled. Thus, "The Maine Potato Shippers' 
 Exchange", "The Richmond Egg Circle", etc. Practically all 
 associations should be incorporated under the laws of the state 
 where it is located. 
 
 SECTION 2— Objects. 
 The objects of this association shall be to encourage better and 
 more economical methods of production and distribution; to secure 
 better results in grading, packing, marketing, standardizing and adver- 
 tising our products; to buy supplies in a cooperative way; to rent, 
 buy, build, own, sell and control such buildings and other real and 
 personal property as may be needed in the business; to cultivate the 
 cooperative spirit in the community and to perform any other work 
 which may tend to the betterment of the members and the uplift of 
 the neighborhood. 
 
 NOTE — Make the objects as definite as possible, but it is also well 
 to include a "blanket", which will cover any future efforts of the 
 association. 
 
 SECTION 3— Membership. 
 All e-igible and accepted members shall sign these rules, and con- 
 tribute their share of capital stock or other regular investment 
 prescribed. 
 
 *A11 matter appearing in parentheses is simply suggestive, and 
 is to be altered to suit the best interests of each individual association. 
 NOTE — There may be conditions where it would be wise to limit 
 membership to those who have been recommended by the Di- 
 rectors or who have received a two-thirds vote of the members 
 present at any meeting. It is doubtful if "chronic kickers" should 
 ever be admitted. The admission of members from other voca- 
 tions is a 'most invariably bad policy, not because they are not 
 good men but their membership is incongrous in these associations. 
 SECTION 4— Meetings. 
 
 1. The annual meeting of the association shall be held on the 
 
 in each year. Notice of such meeting 
 
 shall be given each member in writing by the Secretary, and by 
 publication in the local paper if convenient less than (one week) 
 previous to the date of meeting. 
 
 NOTE — The annual meeting should be held as soon after the close 
 of the year's main business, as will allow for the settlement of 
 all accounts, auditing the books and the preparation of the annual 
 reports of the officers. 
 
 2. Special meetings may be called at any time by the President. 
 
 He shall call such meetings whenever members shall in 
 
 writing so request. A notice of such special meeting shall be sent to 
 each member at least 5 (five) days before the date of said meeting, 
 which notice shall give the nature of the business to be transacted. 
 A similar notice shall be given for all adjourned meetings. 
 
27 
 
 SECTION 5— Quorum. 
 (One-fifth) the members in good standing shall constitute a quorum 
 for the transaction of business at any meeting. 
 SECTION 6— Officers. 
 
 1. At each meeting a Board of Directors shall be 
 
 elected. A President, Vice-President, and Secretary-Treasurer shall 
 be chosen by the Directors from among themselves at the first Board 
 meeting after the annual meeting. They shall also choose two auditors 
 from the members if available. All officers shall be elected by ballot 
 and shall perform the usual work of such officers. (Four) Directors 
 shall constitute a quorum at any Board meeting. 
 
 2. The Board shall employ a Business Manager, who shall have 
 charge of the business of the Association, under the direction of the 
 Board, who shall fix his compensation. 
 
 NOTE — In a large organization it would be well to unite the Office 
 Manager, Secretary and Treasurer in one person, as frequent audits 
 and counter signature of checks, vouchers, etc, would serve as a 
 sufficient check. The combining of these in one individual centers 
 all the office work and tends to greater efficiency. 
 
 3. All officers, who may handle any of the funds or other property 
 of the Association, shall give a surety bond in excess of the funds 
 which they are liable to hand'e at any one time. The cost of such 
 bonds shall be paid for by the Association. 
 
 SECTION 7— Capital Stock. 
 
 1. The capital stock of this association shall be 
 
 divided into shares of each. No member shall 
 
 hold more than (ten) per cent, of the outstanding stock of the asso- 
 ciation. 
 
 2. Transfers of shares shall only be made upon the books of the 
 association when the stockholder is clear from all indebtedness to the 
 association. 
 
 3. A stockholder, desiring to dispose of his shares, must first 
 offer them to the association, through the Board of Directors, at 
 market value. 
 
 NOTE — This provision, if desired, must be provided for in the 
 articles of incorporation, to make it legal. To allow outsiders to 
 purchase association stock might transfer the control of the or- 
 ganization to those who are opposed to its continuance, 
 NOTE ON CAPITAL STOCK— In case the business of an associa- 
 tion is such as to only require a small amount of money and that 
 only for a short time during each year, it may not be necessary 
 to have any capital stock. Annual dues may be collected. The 
 following plan has in such cases worked well, where the local 
 banks are prepared and willing to make such loans. Where this 
 plan is adopted the following will take the place of the precedinc 
 section: 
 
 SECTION 7— Financing. 
 
 1. At the time of uniting with the association ana at the end 
 of each three years after the incorporation of the association, each 
 member shall give a promissory note, payable on demandcto the asso- 
 ciation. This note shall be for the sum of ($25.00) and mi additional 
 ($1.00) for each and every acre of crops, to be marketed through the 
 association, then owned by the member. But in no case shall this note 
 be for a less sum than ($35.00). When a new note is given, the o'd one 
 shall be cancelled and returned to the maker. 
 
 2. These notes shall be the property of the association and s"" 
 be used by the Directors as collateral security with which to borrow 
 
28 
 
 needed money for the association's business. Whenever these notes 
 are depositd as security for a loan, all of the members shall indi- 
 vidualy share the liability in proportion to the face value of their 
 respective notes, 
 
 3. Each member shall pay an annual membership fee of $2.00, 
 payable January 1. 
 
 4. The capital and credit thus obtained shall be used as direct: 
 by the stockholders in regular or called session, 
 
 SECTION 8 — Grading and Inspecting. 
 
 1. All goods produced for sale by the members shall be delivered 
 to the association as directed by the Manager, in prime condition for 
 grading, packing, and shipping. All grading and packing done on the 
 grower's premises must be in accordance with the rules of the asso- 
 ciation and subject to such inspection as may be established by the 
 Directors. 
 
 2. All produce for shipment shall be inspected before shipment, 
 and if any produce is not of good quality and in good condition for 
 shipping, such produce shall be sorted or otherwise prepared for 
 shipment, at the expense of the party to whom such produce belongs. 
 
 3. All brands, labels, trade marks, etc., shall be registered and 
 become the property of the association and they shall be only attached 
 to such grades as shall be ordered by the Board of Directors. 
 
 SECTION 9— Duties and Rights of Members. 
 
 1. A member shall have the right to give away, or retain for his 
 own use such of his farm products as he may wish, but he shall not 
 make sale of crops, promised to the association, to any outside parties, 
 except any product not accepted by the association. 
 
 2. In case any member is offered a price in excess of the price 
 then obtainable by the association, said member shall turn said bid 
 over to the association for filling from said member's goods. 
 
 NOTE — Some such provision is necessary, to prevent an outside 
 disgruntled dealer from making a false bid, to test a member's 
 loyalty and arouse dissension, with the idea of disrupting the 
 organization. Allowing the organization to handle this bid com- 
 pels the mischief-maker to "put up or shut up"; the grower gets 
 the boosted price, if the bidder does not back down, and the organ- 
 ization handles the deal and so is strengthened rather than 
 injured. One or two such experiences has usually discouraged this 
 very common form of outside interference. 
 
 3. Each member shall have a number or mark, which shall be 
 permanently stamped on every sack, box, barrel, crate, basket, or 
 other package shipped by him through the association. Any loss oc- 
 casioned by improper packing or grading shall be charged to the 
 member whose mark is found on said package. 
 
 NOTE — Products packed on the grower's premises should be 
 inspected as they are being packed, by an association inspector. 
 He may be employed and paid by the grower to assist in packing, 
 but he must be held accountable alone to the association for his 
 inspection work. His own private mark should be placed upon 
 each package he packed or inspected and he should be held 
 jointly responsible with the grower for the pack, as it may be 
 disclosed in the final market, ordinary deterioration, excepted. 
 
 4. Each member of the association shall have one vote and only 
 one; providing all claims and dues against said member have been 
 fully paid. No proxies shall be allowed. 
 
 NOTE — In a stock company, which is organized to earn profits on 
 the money invested in the business, a member votes in proportion 
 
to the number of shares he holds. But the true coopferative 
 association is based on the individual member, a number of whom 
 unite to do something in which they have a common interest. 
 In the former money rules; in the latter, men. While there may 
 be cases where the voting power of the members may be made 
 in proportion to the acreage of their products, it wi'l generally be 
 found that any attempt to vary the voting power of members will 
 be unwise. The practice of allowing a member to collect the 
 proxies of absent members and vote the same, possibly giving a 
 single member the control of power, is too dangerous a practice 
 to be allowed. 
 
 In some of the largest non-profit cooperative associations, 
 like the California citrus fruit growers, it has been felt that it 
 was neither fair nor wise to demand that the large producing 
 members should be hed to the same vote as a small producing 
 member, when their responsibility and liability are so unequal. 
 In such a case the voting power of members can be made propor- 
 tional to the amount of their products or acreage handled through 
 the association. 
 
 5. Any member may withdraw from the association at any time 
 between (the first day of December and the first day of the following 
 April) but all claims of whatsoever nature must first be settled. 
 
 NOTE — The time of withdrawal should be fixed so as to take effect 
 after the close of a season's business and before another season 
 begins. To permit a member to withdraw during a busy marketing: 
 season wi'l result in confusion and may seriously handicap the 
 manager in filling his contracts. 
 
 6. Any member, feeling that he has a grievance or cause for 
 complaint, may appeal to the Board of Directors, or to the members at 
 any regularly called meeting. No member shall be temporarily sus- 
 pended or expelled from the benefits of the association, without first 
 being heard in his own defense, either by the Board of Directors or by 
 the members at a regularly cal'ed meeting, 
 
 SECTION 10 — Duties and Powers of the Manager. 
 The manager shall employ and discharge all labor; he shall secure 
 information as to crop and market conditions and furnish same to the 
 members on request. He shall encourage the production of the best 
 varieties of products demanded by the trade. He shall conduct pack- 
 ing schools, in order that growers may become trained in the best 
 methods of grading, packing, and labeling their products. He shall 
 have charge of the grading, packing and inspection of all association 
 products and shall have control of the brands and labels and their use 
 on the association packages, in accordance with the rules of the asso- 
 ciation. He shall enter into contracts for the sale of the association 
 goods. He shall have entire charge of the marketing of all association 
 goods, subject on y to the action of the Board of Directors and the 
 by-laws and rules of the association. 
 
 NOTE — The manager is the most important officer and his powers 
 must be limited as little as possible. He cannot be held respon- 
 sible, if he is to be dictated to at will by each member or the 
 officers are to constantly meddle with his work. This does not 
 imply that the manager should be a dictator. He takes the sug- 
 gestions of the officers and members and, from those of his own 
 experience, he constructs a business plan. Whenever a manager 
 loses the confidence of the members, he had best be replaced with 
 a manager who possesses that confidence. 
 
 SECTION 11 — Expenses and Payments. 
 
1. The expenses of operating this association shall be met by a 
 percentage on returns for produce sold by the association or by a 
 fixed price per package, the amount of such charge to be fixed by the 
 Directors. 
 
 2. All merchandise purchased, by the association for the use of 
 its members shall be paid for in cash by each member on delivery. 
 
 NOTE — Any system of extending credit requires large capital and 
 often results in considerable loss. 
 
 3. Payment for produce will be made to the shippers on the 
 receipt by the association of returns for the sale of their produce, 
 unless otherwise ordered by the full Board of Directors. In making 
 sales all produce of the same grade shall be pooled and all shippers 
 of the same grade shall receive exactly the same price. 
 
 SECTION 12 — Dividends and Damages. 
 After the season's expenses are paid and the proper sum set aside 
 as a reserve for the depreciation of the association property, the 
 balance of the season's profits shall be divided as follows: 
 
 1. The stockholders shall receive (six) per cent per annum on the 
 par value of their stock. 
 
 2. One-half the balance shall be set aside as a surplus fund, to 
 increase the working capita! or to finance future improvements until 
 the surplus shall amount to a sum equal to the capital stock; by 
 majority vote of the members it may be made greater. 
 
 3. The balance shall be divided among the members, in proportion 
 to the value of their shipments and purchases made through the 
 association during that season. 
 
 Provided, that when any member has failed during that season to 
 live up to his agreements, by failing to ship exclusively through the 
 association, or by any other breach of his contract, and provided 
 further that said failure on his part has resulted in a loss or damage 
 to the association, then said defaulting member shall forfeit to the 
 association such a share of his dividends then due as shall reimburse 
 said association for the loss or damages thus sustained, in lieu of 
 liquidated damages. Or the association may proceed to collect from 
 said defaulting member said damages out of any other of his funds or 
 property. 
 
 NOTE — Some courts have held that to require a member to pay 
 his association a fee for the privilege of selling contracted 
 products to an outside dealer is in restraint of trade; therefore, 
 illegal. While it may not be legal for an association to penalize 
 its members, it may be found that an association can legally pro- 
 vide, as in this last by-law, to collect damages from a defaulting 
 member, when losses or damages have actually resulted from the 
 failure of the member to live up to his agreements. Some form 
 of binding contract is essential to hold the members of an asso- 
 ciation together. Many an organization has failed because mem- 
 bers were only bound by a gentlemen's agreement. A voluntary 
 membership is totally inadequate for a stable and long enduring 
 organization. The laws of the state should be studied, so that this 
 by-law for holding the members may be legally drawn. 
 
 SECTION 13— Auditing. 
 The books and business of the association shall be audited 
 monthly by the auditors selected from the membership. An annual 
 audit shall be made by a certified public accountant previous to the 
 date of the annual meeting, at which meeting said report shall be 
 presented in full. Special audits shall be made upon order of the 
 Board or upon a vote of the members at any legally called meeting. 
 
31 
 
 NOTE — While small associations may not feel the need of such 
 a strict system of investigating the accounts, it will pay to have 
 this work done often and most thoroughly. If the association 
 business is being done carelessly, frequent audits will make it 
 known and better methods may be adopted before any great loss 
 occurs. The cost of an expert accountant is more than balanced 
 by the confidence which it gives the members and effectually 
 stopping the criticism of fault finders. 
 
 SECTION 14— Amendments. 
 These laws may be amended at any meeting by a two-thirds vote 
 of the members present in the afiirmative. Notice of such proposed 
 change must be included in the call for said meeting. 
 
32 
 
 Form of Application for 
 
 No. 349. 
 
 The charter of incorporation of 
 
 1. The corporate title of said company is 
 
 2. The names of the incorporators are: 
 
 Postoffice 
 
 Postoffice 
 
 Postoffice 
 
 Postoffice 
 
 Postoffice 
 
 3. The domicile is at 
 
 4. Amount of capital stock 
 
 5. The par value of shares is 
 
 6. The period of existence (not to exceed fifty years) is 
 years. 
 
 7. The purpose for which it is created is: 
 
 8. The rights and powers that may be exercised by this corpo- 
 ration are those conferred by the provisions of Chapter 24, Mississippi 
 Code, 1906. 
 
 Incorporators. 
 
 ACKNOWLEDGMENT. 
 STATE OF MISSISSIPPI, 
 
 County. 
 
 This day personally appeared before me, the undersigned authority 
 
 , incorporators of the corporation known as the 
 
 who acknowledged that they signed and executed the above and fore- 
 going articles of incorporation as their act and deed, on this the 
 
 day of , 19 
 
 Witness my hand and official seal, this day of , 19. . . . 
 
 (Official title.) 
 LEGAL REQUIREMENTS 
 GOVERNING CORPORATE BODIES. 
 (Extract from State Code, 1906.) 
 
 Witness my hand and official, this day of 19. . . . 
 
 898. (833) How corporations created. The persons desirin"; 
 to be incorporated shall apply to the secretary of state for the 
 necessary blank form of application for a charter, which form shall 
 be as follows: , 
 
 "The charter of Incorporation of 
 
33 
 
 1. The corporate title of said company is 
 
 2. The names of the incorporators are: 
 Postoffice 
 
 3. The domicile is at 
 
 4. Amount of capital stock 
 
 5. The par value of shares is 
 
 6. The period of existence (not to exceed fifty years) is. 
 years. 
 
 7. The purpose for which it is created is 
 
 8. The rights and powers that may be exercised by this corpo- 
 ration are those conferred by the provisions of this chapter. 
 
 P. * The which it is proposed to build and 
 
 operate is described as (here describe the line and state the points it 
 will traverse) . : 
 
 Said application blank when filled out and signed by each of the 
 incorporators and acknowledged before a notary pub ic or other officer 
 authorized by law to take the acknowledgment to deeds, shall bo 
 published three consecutive weeks in one or more newspapers pub- 
 lished at the domicile of the proposed corporation, and if there be not a 
 newspaper puglished in the county where such proposed corporation is 
 to be domiciled, then by publication in one or more newspapers pub- 
 lished in this state and having circulation in the county of the domicile 
 of the proposed corporation; but corporations for Masonic and Odd Fel- 
 lews lodges, temperance societies, fire companies, charitable associa- 
 tions, schools and literary institutions, religious societies, mechanics, 
 associations, fair associations, and agricultural societies shall not be re- 
 quired to make such publication. And said application, with proof of 
 publication thereof, if required, shall be forwarded to the secretary oi 
 state, with the fee for recording and certifying the same as provided 
 in section 938 of this chapter. The secretary of state, on receipt or 
 said application, shall endorse upon it as follows: "Received at the 
 
 office of the secretary of state this the day of A. 
 
 D , together with the sum of $ recording fee, an 
 
 referred to the attorney general for his opinion." 
 
 "Secretary of State." 
 The attorney-general shra'l examine the same and endorse his 
 opinion thereon as follows: "I have examined this charter of incor- 
 poration and am of the opinion that it the constitution 
 
 and laws of this state, or of the United States. 
 
 "Attorney-General." 
 The attorney-general shall examine the same and endorse his 
 governor for his approval or disapproval. The governor shall return 
 it to the secretary of state with his action endorsed thereon. If h<^ 
 approve it the secretary of state shall record it in the record kept in 
 his office for that purpose, and certify to the same under the great seal 
 of the state, and transmit it to the applicants; if the governor disap- 
 prove it, the secretary of state shall file it in his office and notify the 
 applicants of the disapproval and state the reasons therefor, and they 
 may amend the same so as to meet the objections thereto if they 
 see fit. If they do not amend it so as to meet the approval of the 
 
34 
 
 governor, the secretary of state shall return the fee to the applicants, 
 less the sum of three dollars, which shall be paid into the state 
 treasury for "charters examined, disallowed and filed." And the 
 powers specified in such charters shall, by the approval of the charter, 
 be vested in such corporation, and it shall go into operation at the time 
 and on the terms and conditions specified. 
 
 909. (844) Stockholder's liability and transfers of stock (Laws 
 1894, ch. 55). In all corporations each stockholder shall be individ- 
 ually liable for the debts of the corporation contracted during his 
 ownership of stock, for the amount of any balance that may remain 
 unpaid for the stock subscribed for by him, and may be sued by any 
 creditor of the corporation; and such liability shall continue for one 
 year after the sale or transfer of the stock. The stock in all corpo 
 rations shall be transferable by the endorsement and delivery of the 
 stock certificate and the registry of such transfer in the books of the 
 corporation. 
 
 924. (583) Debts in excess of capital stock. The amount of 
 debts which any trading corporation or company may contract or owe 
 shall not exceed the amount of its capital stock paid in; and, in cas? 
 the debts exceed that amount, the directors who contracted such 
 debts sha 1 be individually liable for the excess over the amount of 
 capital stock, and may be sued therefor by any creditor, whether the 
 debt be due at the time of suit brought or not, if such creditor was 
 without notice of knowledge of the excess at the time his debt was 
 made. 
 
 930. Corporations shall report organization. Every corporation 
 organized under this chapter shall, within thirty days after such 
 organization, make report thereof to the secretary of state, who is 
 required to furnish blank forms for that purpose as provided for in 
 the next section. The secretary of state shall enter each report and 
 index the same in a record to be kept in his ofiice for that purpose. 
 Should such report be not made within the time required, the charter 
 granted shall be null and void, and all persons doing business there- 
 under shall be deemed and held to be partners in the business and 
 liable as such. 
 
 931. Blank forms to be furnished. The secretary of state shall 
 send with each charter of incorporation granted under this chapter, 
 a blank form of report of organization to be filled and signed by the 
 president and certified by the secretary thereof and transmitted to 
 the secretary of state for record in his office. The form of said 
 report shall be as follows: 
 
 REPORT OF ORGANIZATION. 
 No. 350. 
 
 The which was incorporated on the day 
 
 of , 19 , was organized on the day of 
 
 19 , at , in the County of , by 
 
 the election of 
 
 as Directors, who elected the following officers to serve for. 
 year, to wit : 
 
 The postoffice address of the President is 
 
 The postoffice address of the Secretary is 
 
 I, , who was elected President of the . 
 
 .... on the . day of 19 . 
 
do hereby certify jibX the foregoing report of the orgv^nizatloii of said 
 
 company is correct and true. 
 
 , President 
 
 , Secretary. 
 
 (Attest) : 
 
 PROXY TO VOTE STOCK. 
 No. 351. 
 STATE OF MISSISSIPPI, 
 
 County. 
 
 I, of County, Mississippi, do 
 
 hereby constitute and appoint of my 
 
 true and lawful attorney in fact, with power of substitution for me 
 and in my name, place and stead vote my stock at the next reguiar 
 
 annual (or special) meeting of the stockholders of the 
 
 to be held in on ,19 and to 
 
 represent me in the transaction of all such business as may properly 
 come before such meeting, hereby revoking all other power hereto- 
 fore executed by me. 
 
 Witness my signature, this 19 
 
 938. What fees to be paid to the secretary of state. The follow- 
 ing fees shall be paid in advance to the secretary of state, viz.: 
 For recording charter of each domestic corporation for profit 
 
 when the capital stock does not exceed $10,000 $ 20.00 
 
 Same when capital stock exceeds $10,000 and does not exceed 
 
 $30,000 . 40.00 
 
 Same when capital stock exceeds $30,000 and does not exceed 
 
 $50,000 60.00 
 
 Same when capital stock exceeds $50,000 the fee shall be one- 
 tenth of one per cent, provided that no fee for recording any 
 
 charter shall be more than 250.00 
 
 For each amendment to charter for profit 50" 
 
 For each certified copy of a domestic corporation 10.00 
 
 For each certified copy of a foreign charter 10 '^ 
 
 For filing articles of consolidation 25.00 
 
 For filing other articles of agreement between corporations... 20.00 
 
 For filing each charter of a foreign corporation 15.00 
 
 For certificate of official character of an officer or ex officio. . . . 2.00 
 
36 
 
 L.a\^s Governing Co-operative Association. 
 
 At present there is no law in this state providing for cooperative 
 corporations, nor for protecting them were they organized. The laws 
 governing corporations should be amended so as to give cooperative 
 business a chance. As suggestive of legislation on this subject i 
 append herewith extracts from the code of Wisconsin relative to this 
 subject, 
 
 CHAPTER 368, LAWS OF 1911. 
 An Act to create sections 1786e — 1 to 1786e-17, inclusive of the statutes, 
 relating to the incorporation of co-operative associations, and the 
 fees to be paid therefor. 
 
 The people of the State of Wisconsin, represented in Senate and 
 Assembly, do enact as follows: 
 
 Co-operative associations: who may organize; purposes. Section 
 1786e-l. (Ch. 368, 1911). Any number of persons, not less than five, 
 may associate themselves as a co-operative association, society, com- 
 pany, or exchange, for the purpose of conducting any agricultural, 
 dairy, mercantile, mining, manufacturing or mechanical business on 
 the co-operative plan. For the purposes of this act, the words "asso- 
 ciation", "company", "corporation", "exchange", "society", or 
 "union", shall be construed to mean the same. 
 
 Articles: contents. Section 1786e-2. (Ch. 368, 1911.) They shall 
 sign and acknow edge written articles which shall contain the name 
 of said association and the names and residences of the persons 
 forming the same. Such articles shall also contain a statement of 
 the purposes of the association and shall designate the city, town or 
 village where its principal place of business shall be located. Said 
 articles shall also state the amount of capital stock, the number of 
 shares and the par value of each. 
 
 Articles: verification; filing; Charter. Section 1786e-3. (Ch. 368, 
 1911.) The original articles of incorporation organized under this 
 act or a true copy thereof, verified as such by the affidavits of two of 
 the signers thereof, shall be filed with the secretary of state. A like 
 verified copy of such articles and certificates of the secretary of 
 state, showing the date when such articles were filed with and 
 accepted by the secretary of state,, within thirty days of such filing 
 and acceptance, sha 1 be filed with and recorded by the register of 
 deeds of the county in which the principal place of business of the 
 corporation is to be located, and no corporation shall, until such 
 articles be left for record, have legal existence. The register of 
 deeds shall forthwith transmit to the secretary of state a certificate 
 stating the time when such copy was recorded. Upon receipt of such 
 certificate the secretary of state shall issue a certificate of incorpora- 
 tion. 
 
 Filing fee. Section 1786e-4. (Ch. 368, 1911.) For filing of arti- 
 cles of incorporation or corporations organized under this act, there 
 shall be paid the secretary of state ten dollars and for filing of an 
 amendment to such articles, five dollars. For recording copy of such 
 articles the register of deeds shall receive a fee of twenty-five cents 
 to be paid by the person presenting such papers for record. 
 
 Directors: election; duties; election of officers. Section 1786e-5. 
 (Ch. 368, 1911.) Every such association shall be managed by a board 
 of not less than five directors. The directors shall be elected by and 
 from the stockholders of the association at such time and for such 
 
37 
 
 term of oflice as the by-laws may prescribe, and shall hold office for 
 time for which elected and until their successors are elected and shall 
 enter upon the discharge of their duties; but a majority of the stock- 
 holders shall have the power at any regular or special stockholders' 
 meeting, legally called, to remove any director or officer for cause, and 
 fill the vacancy, and thereupon the director, or officer so removed 
 shall cease to be a director or officer of said association. The officers 
 of every such association shall be a president, one or more vice- 
 presidents, a secretary and a treasurer, who shall be ejected annually 
 by the directors, and each of said officers must be a director of th^ 
 association. The office of secretary and treasurer may be combined, 
 and when so combined the person filling the office shall be secretary- 
 treasurer. 
 
 Amendments: how adopted; recording. Section 1786e-6. (Ch 
 368, 1911.) The association may amend its articles of incorporation 
 by a majority vote of its stockholders at any regular stockholders' 
 meeting, or at any special stockholders' meeting called for that pur- 
 pose, on ten days' notice to the stockholders. Said power to amend 
 shall include the power to increase or diminish the amount of capital 
 stock and the number of shares. Provided, the amount of the capital 
 stock shall not be diminished below the amount of paid-up capital at 
 time amendment is adopted. Within thirty days after the adoption of 
 an amendment to its articles of incorporation, an association shall 
 cause a copy of such amendment adopted to be recorded in the office 
 of the secretary of state and of the register of deeds of the county 
 where the principal place of business is located. 
 
 Business authorized to be conducted. Section 1786e-7. (Ch. 368. 
 1911.) An association created under this act shall have power to 
 conduct any agricultural, dairy, mercantile, mining, manufacturing or 
 mechanical business, on the co-operative plan and may buy, sell and 
 deal in the products of any other co-operative company heretofore 
 organized or hereafter organized under the provisions of this act. 
 
 Stock: issue; limit; vote. Section 1786e-8. (Ch. 368, 1911) 
 No stockholder in any such association shall own shares of a greater 
 aggregate par value than one thousand dollars, except as hereinafter 
 provided, or be entitled to more than one vote. 
 
 Subscription of stock in other associations. Section 1786e-9. 
 (Ch. 386, 1911.) At any regular meeting, or any regularly called 
 special meeting at which at least a majority of all its stockholders 
 shall be present, or repre.sented, an association organized under this 
 act may, by a majority vote of the stockholders present or represented 
 subscribe for shares and invest its reserve fund, or not to exceed 
 twenty-five per cent of its capital, in the capital stock of any other 
 co-operative association. 
 
 Purchasing business of other associations: payment; stock issue. 
 Section 1786e-10. (Ch. 368, 1911.) Whenever an association, created 
 under this act, shall purchase the business of another association, 
 person or persons, it may pay for the same in whole or in part by 
 issuing to the selling ai^sociation or person shares of its capital stock 
 to an amount, which at par value would equal the fair market value 
 of the business so purchased, and in such case the transfer to the 
 association of such business at such valuation shall be equivalent to 
 payment in cash for the shares of stock so issued. 
 
 Certificates of stock, when he'd in trust; issue. Section 1786e-ll. 
 (Ch. 368, 1911.) In ease the cash value of such purchased business 
 exceeds one thousand dollars, the directors of the association are 
 authorized to hold the shares in excess of one thousand dollars in 
 
38 
 
 trust for the vendor and dispose of the same to such persons, and 
 within such times as may be mutually satisfactory to the parties i^ 
 interest, and to pay the proceeds thereof as currently received to the 
 former owner of said business. Certificates of stock shall not be 
 issued to any subscriber until fully paid, but the by-laws of the 
 association may allow subscribers to vote as stockholders; provided, 
 part of the stock subscribed for has been paid in cash. 
 
 Stockholders may vote by mail. Section 1786e-12. (Ch. 368, 
 1911.) At any regularly called general or special meeting of the 
 stockholders a written vote received by mail from any absent stock- 
 holder and signed by him may be read in such meeting and shall be 
 equivalent to a vote of each of the stockholders so signing; provided, 
 he has been previously notified in writing of the exact motion or reso- 
 lution upon which such vote is taken and a copy of same is forwarded 
 with and attached to the vote so mailed by him. 
 
 Earnings: apportionment. Section 1786e-13. (Ch . 368, 1911.) 
 The directors, subject to revisions by the association at any general 
 or special meeting, shall apportion the earnings by first paying divi- 
 dends on the paid-up capital stock not exceeding six per cent per 
 annum, then setting aside not less than ten per cent of the net profits 
 for a reserve fund until an amount has accumulated in said reserve 
 fund equal to thirty per cent of the paid-up capital stock, and five per 
 cent thereof for an educational fund to be used in teaching co-opera- 
 tion, and the remainder of said net profits by uniform dividend upon 
 the amount of purchases of shareholders and upon the wages and 
 salaries of employes, and one-half of such uniform dividend to non- 
 shareholders on the amount of their purchases, which may be credited 
 to the account of such nonshareholders on account of capital stock ol 
 the association; but in productive associations such as creameries, 
 canneries, elevators, factories, and the like, dividends shall be on raw 
 material delivered instead of on goods purchased. In case the asso- 
 ciation is both a selling and a productive concern, the dividends may 
 be on both raw material delivered and on goods purchased by patrons. 
 
 Distribution of dividends. Section 1786e-14. (Ch. 368, 1911 ) 
 The profits or net earnings of such association shall be distributed to 
 those entitled thereto, at such times as the by-laws shall prescribe, 
 which shall be as often as once in twelve months. If such association, 
 for five consecutive years shall fail to declare a dividend upon the 
 shares of its paid-up capital, five or more stockholders, by petition, 
 setting forth such fact, may app'y to the circuit court of the county, 
 wherein is situated its principal place of business in this state, for its 
 dissolution. If, upon hearing, the allegations of the petition are found 
 to be true, the court may adjudge a dissolution of the association. 
 
 Annual report: contents; filing. Section 1786e-15. (Ch. 368. 
 1911.) Every association organized under the terms of this act shall 
 annually, on or before the first day of March of each year, make a 
 report to the secretary of state; such report shall contain the name 
 of the company, its principal place of business in this state, and 
 generally a statement as to its business, showing total amount of 
 business transacted, amount of capital stock subscribed for and paid 
 in, number of stockholders, total expenses of operation, amount of 
 indebtedness or liabilities, and its profits and losses. 
 
 Co-operative associations heretofore organized: may adopt pro- 
 visions of this act. Section 1786e-16. (Ch. 368, 1911.) All co-opera- 
 tive corporations, companies, or associations heretofore organized and 
 doing business under prior statutes, or which have attempted to so 
 organize and do business, shall have the benefit of all of the provisions 
 
39 
 
 of this act, and be bound thereby on filing with the secretary of state 
 a written declaration signed and sworn to by the president and secre- 
 tary to the effect that said co-operative company or association has 
 by a majority vote of its stockholders decided to accept the benefit'? 
 of and to be bound by the provisions of this act. No association 
 organized under this act shaP be required to do or perform anything 
 not specifical'y required herein, in order to become a corporation or 
 to continue its business as such. 
 
 Use of term "co-operative" limited to corporations under this act. 
 Section 1786e-17. (Ch. 368, 1911.) No corporation or association 
 hereafter organized or doing business for profit in this state shall be 
 entitled to use the term "co-operative" as part of its corporate or 
 other business name or title, unless it has complied with the provisions 
 of this act; and any corporation or association violating the provisions 
 of this section may be enjoined from doing business under such name 
 at the instance of any stockholder or any association legally organiz-^ 
 hereunder. 
 
 Section 2. This act shall take effect and be in force from and 
 after its passage and publication. 
 
 THE NEBRASKA LAW. . 
 
 In Nebraska, a law, Senate File No. 88.. defines cooperative asso- 
 ciations and gives cooperation a definite legal status. The law says, 
 "for the purpose of this act, the words 'cooperative company, cor- 
 poration, or association' are defined to mean a company, corporation, 
 or association which authorizes the distribution of its earnings in 
 part or wholly, on the basis of, or in proportion to, the amount of 
 property bought from or sold to members, or of labor performed, or 
 other service rendered to the corporation." It differs from the general 
 incorporation law of Nebraska by providing that every cooperative 
 corporation has the power "to regulate and limit the right of stock- 
 holders to transfer their stock; and to make by-laws for the manage- 
 ment of its affairs, and to provide thereon the term and limitation ot 
 stock ownership, and for the distribution of its earnings." 
 
 Very few states have laws providing for the chartering of com- 
 mercial companies witho^it a capital stock. Corporations doing 
 commercial business without share capital is a new development in 
 modern business. All states charter fraternal, religious, charitable and 
 educational associations without capital stock; they are not run as 
 commercial institutions and therefore not supposed to need capital 
 stock; the expenses being met by charter fees and dues. But we now 
 have commercial associations operating on the same basis, with 
 similar powers in restricting membership and the expulsion of mem- 
 bers and preventing transfer of membership, that are given fraternal, 
 religious, charitable and educational organizations. 
 
 As an example we give herewith extracts from the California law 
 providing for this type of corporation. 
 
 THE CALIFORNIA LAW. 
 
 In California, a law has been enacted relating to the incorporation, 
 organization, management, and cooperation of agricultural, viticultural, 
 and horticultural nonprofit association.^. The law provides that: — 
 
 "Such associations shall not have a capital Ltock, and its business 
 shall not be carried on for profit. Any person or any number of 
 persons, in addition to the original incorporators, may become mem- 
 bers of such association, upon such terms and conditions as to 
 membership, and subject to such rules and regulations as to their, 
 and each of their, contract and other rights and liabilities between iM 
 and the member, as the said association shall provide in its by-laws |y 
 
40 
 
 The association shall issue a certificate of membership to each mem- 
 ber, but the said membership, or the said certificate thereof, shall not 
 be assigned by a member to any other person, nor shall the assigns 
 thereof be entitled to membership in the association, or to any property 
 rights or interests therein. Nor shall a purchaser at execution sale, 
 or any other person who may succeed by operation of law or otherwise 
 to the property interests of a member, be entitled to membership, or 
 become a member of the association by virtue of such transfer. The 
 board of directors may, however, by motion duly adopted by it, 
 consent to such assignment or transfer and to the acceptance of the 
 assignee or transferee as a member of the association, but the asso- 
 ciation shall have the right, by its by-laws, to provide for or against 
 the assignment of membership certificates, and also the terms and 
 conditions upon which any such transfer or assignment shall be 
 allowed." 
 
 The California law states that "whether the voting power and 
 property rights and interests of each member shall be equal or unequal, 
 and if unequal the articles shall set forth a general rule or rules 
 applicable to all members by which the voting power and the property 
 rights and interests, respectively, of each member may and shaU be 
 determined and fixed, but the association shall have power to admit 
 new members who shall be entitled to vote and to share in the 
 property of the association with the old members, in accordance with 
 such general rule. This provision of the articles of incorporation shall 
 not be altered, amended, or repealed except by unanimous written 
 consent or vote of all the members." 
 
 Under the California law each association may by its by-laws 
 approve: — 
 
 "The amount of membership fee, if any, and the amount which 
 each member shall be required to pay annua' ly, or from time to time, 
 if at all, to carry on the business of the association. 
 
 "The number and qualifications of members of the association 
 and the conditions precedent to membership and the method, time, and 
 manner of permitting members to withdraw, and providing for the 
 assignment and transfer of the interest of members, and the manner 
 of determining the value of such interest and providing for the pur- 
 chase of such interest by the association upon the death, withdrawal, 
 or expulsion of a member or upon the forfeiture of his membership, 
 at the option of the association." 
 
 "Permitting members to vote by their proxies, and determining 
 the conditions, manner, form and effect thereof." 
 
 Each association shall also have the power — 
 
 "To appoint such agents and officers as its business may require, 
 and such appointed agents may be either persons or corporations; or 
 admit persons to membership in the association, and to expel any 
 member pursuant to the provisions of its by-laws; to forfeit the 
 membership of any member for violation of any agreement between 
 him and the association, or for his vio'ation of its by-laws. 
 
 "To purchase or otherwise acquire, hold, own, sell, and otherwise 
 dispose of any and every kind or kinds of real and personal property 
 necessary to carry on its business, and to acquire by purchase or 
 otherwise the interest of any member in the property of the associa- 
 tion. 
 
 "Upon the written assent or by vote of members representing 
 two-thirds of the total votes of all members to cooperate with any 
 other cooperative corporation or corporations for the cooperative and 
 more economical carrying on of their respective businesses, by con- 
 
41 
 
 solidation as provided in section 6531 of this code, whereupon the 
 effect of such consolidation shall be the same as declared in said 
 section; or upon resolution, adopted by its board of directors, to 
 enter into all necessary and proper constipu ations and arrangements 
 with any other cooperative corporation or corporations for the co- 
 operative and more economical carrying on of its business, or any 
 part or parts thereof; or any two or more cooperative corporations 
 organized under this title, upon resolutions, adopted by their respect- 
 ive boards of directors, may, for the purpose of more economically 
 carrying on their respective businesses, by agreement between them, 
 unite in employing and using, or several associations may separately 
 employ and use, the same methods, means and agencies for carrying 
 on and conducting their respective businesses." 
 
 DEPARTMENT OF MARKETS 
 AT A. & M. COLLEGE 
 
 Answering the demand for the practical in the preparation of 
 the student for the realities of life on the farm, for the equipment of 
 those who are to be the farmers of the future, with the necessary 
 knowledge in the conduct of the distribution of his products to the 
 consumers of the world, as well as their production, the Agricu turai 
 and Mechanical College of Mississippi has established a department of 
 Markets and Rural Economics as a part of its regular curriculum. 
 
 Economics has to do with the most effective use of labor and its 
 agencies. Rural economics treats of production, distribution and use 
 of rural wealth, and the best investments on the farm of time, money 
 and knowledge. 
 
 In conducting a class in this course the superordinate subjects 
 studied are Production, Distribution, and Finance. 
 
 PRODUCTION. 
 
 Under the head of Production the c ass is instructed in the sub- 
 jects of tillage; investments; general expenditures; factors determin- 
 ing the class of farming to be done; agencies and conditions sur- 
 rounding farm life; farm demonstration; individual farm management; 
 corporation farm management; co-operative farm management; 
 bonanza or large estate farming, its advantages and disadvantages; the 
 adaptability of each to specific conditions. 
 
 Students are required to itemize the expenditures legitimately 
 included in the cost of production. This brings out discussions on 
 the standards of living and their effect on the cost of production. 
 
 The growth of tenancy, its cause and cure is studied from tha 
 historic, economic and social standpoints. 
 
 The effects of immigration economically, socially and politically 
 and the effects of the movement from the country to the towns and 
 cities are covered in their various phases. 
 
 DISTRIBUTION. 
 
 Under the division of Distribution the student is directed to study 
 the influence of commerce on the history of the world; the evolution 
 in the conduct of commerce and the marked "speeding up" of modern 
 transportation. The various systems of marketing and methods ot 
 distribution are then taken up and compared one with another. The 
 selling methods of the trusts and the farmers are contrasted; the 
 methods of the railroads in selling service; insurance companies in 
 selling "protection"; banks in selling credit; manufacturers in sel ing 
 their products; wholesalers, jobbers, retailers, mail order methods, 
 etc., etc., are all handled till the student is familiar with each. The 
 law of price is discussed, and the agencies regulating price, and the 
 distinction between price and cost are studied from all angles. 
 
42 
 
 Conditions which render individual marketing inevitable are con- 
 sidered and conditions under which collective marketiiig is developed 
 given attention. Comparisons are made between individual marketing, 
 corporation marketing, and co-operative marketing, and the economic 
 significance of each. This subject is amplified by studying ine 
 examples of each class in various countries and with various products 
 handled by each method. 
 
 The effects of the standardization of products in securing better 
 prices; the purpose of trademarks, brands; how to ship; bills of 
 lading; legal features of the same; the C. I. F. & 6 per cent contracts; 
 water, tare, refrigeration, etc, come in for study. Plans for the 
 linking together of organized city buyers and organized country pro- 
 ducers; municipal markets as operated in Europe and America are 
 brought into play. 
 
 The class is drilled in the writing of Constitutions and By-Laws 
 governing every kind of corporation. It is made to go thro'igh with 
 the moot process of securing a charter for an organization; discussions 
 are held as to the kind of corporation it is best to be, and adjusting 
 the Constitution and By-Laws to suit the kind of business and its 
 method of operation. 
 
 The subject of Exchanges is then taken up. The cotton exchanges, 
 the grain exchanges and the stock exchanges are studied; their 
 systems of organization, methods of business; scope of operation — ali 
 the functions they perform. Thorough drilling is carried on to 
 familiarize the student with the methods of the commercial world 
 and the part the exchanges play in the same. 
 
 The buying end of distribution is then taken up and another com- 
 parison is made between individual buying, corporation buying and 
 co-operative buying. 
 
 The subject of different types of corporations is handled by 
 folowing the lines of demarkation between the various kinds - 
 corporations divided on the basis of the attitude of each toward its 
 stockholders, its employees and its customers. By this standard wf 
 have the ordinary corporation, the copartnership corporation and the 
 co-operative corporation. These are compared, using numerous 
 examples, and the effect of each method on the producer, the inter- 
 mediary and the consumer traced to the ultimate. 
 
 The subjects of watered stocks, interlocking directorates, inflated 
 securities, bogus promotion schemes, capitalizing incomes, frenzied 
 finance are given place in the course to familiarize students with the 
 fundamental principles underlying ail the various agencies affecting 
 the life, prosperity and general welfare of the producers and the gen- 
 ergil citizenship of the nation. 
 
 The International Institute of Agriculture Is included. It is 
 supported by 53 nations, representing 98 per cent of the population and 
 95 per cent of the area of the earth. Its history, divisions and func- 
 tions are studied. 
 
 The Government Bureau of Markets — its purpose, possibilities, 
 duties, prospects and methods — gives wide range for plans anC dis- 
 cussions. Being a new governmental venture its development will 
 be watched with unusual interest. 
 
 FINANCE. 
 
 Agricultural finance; rural credits; farm banking; long-time land 
 loans; short-time personal loans; all these are studied in tlie light of 
 present-day needs. The rural credit systems of Europe are studied in 
 detail. Long-time loans on land, for personal use and for purpose of 
 purchase; by private initiative, corporation administratlou and by 
 
43 
 
 government aid; the amortization principles as applied to land loans; 
 short-time, personal credit co-operative banking; the Scnuize-Delitzsch, 
 the Raiffeisen, the Credit Agricole, the Credit Foncier — all these are 
 studied and the effect of co-operative finance on country life — the 
 effect on production, distribution, consumption and the social life ol 
 rural life, and the possible adaptation of some of the principles of 
 co-operative finance and distribution to American agriculture. 
 
 The cost of living as it affects all classes of society is taken up 
 and studied in its various phases: What it takes to constitute cost of 
 living; cost as regulated by the power to earn; cost as regulated by 
 the power to consume; cost as affected by distribution; cost as 
 affected by standards of civilization; individual responsibility in 
 determining the cost of living; collective or social responsibility in 
 determining the cost of living; our waste of resources In production; 
 the extravagant use of luxuries; — and the bearing of all these on 
 production and distribution, which must be paid by the consumer. 
 
 The subject of Parasites is then studied: Human parasites 
 analogous to parasites in the vegetable and animal kingdoms. The idle 
 parasite and the industrious parasite; the useful parasite and the 
 useless parasite; classes that could and should be eliminated and 
 classes that could not and should not be e'iminated. 
 
 Approximate price index of various countries compared with 
 volume of m.oney per capita int^ach; the effect of tariff ana reciprocity 
 treaties and of merchant marine on prices, are considered. 
 
 Finally the various schools of thought and the proposals of each 
 for the industrial relations of all classes of society and the future of 
 the government are presented from the standpoint of advocates. 
 
 Thus the student becomes familiar with business, the part tlie 
 farmer plays in the economy of the world, the opportunities and 
 duties of to-day and the hopes of the future. 
 
 With a full knowledge of the methods of the business world; 
 familiar with the process of growth of the trust; understanding the 
 merits of the economy of large business; understanding the agencies 
 of failure as exemplified by the millions of the submerged; studying 
 the cause and effect of economic pressure, investigating the factors 
 of development and progress, of decadence and failure, the power of 
 organized effort, as against the helplessness of unorganized effort, the 
 problems pressing for solution by this generation can certainly be 
 more readily understood by those upon whom the solution depends. 
 
 It is one of the penalties of free government that we must study 
 these things or pay the forfeit. Nemesis stands with wraiths around 
 to haunt the abode of indolence and dead hopes. We deem it one of 
 the duties of the colleges and universities of America to aid in the 
 work of preparing the farmer of the future for his duties In other 
 lines as well as in production, that he may work out his destiny with 
 a full appreciation of all the factors involved, the obstacles ne must 
 surmount, and the agencies at his command. 
 
 (Note: I have prepared a Text Book for this course. Published 
 
 by the Shakespeare Press 114-116 E. 28 St., New York City. Price 
 
 $1.50 net.) 
 
44 
 
 PUBLICATIONS RECOMMENDED FOR READING IN THE STUDY 
 
 OF FARM CREDIT, MARKETING, AND BUSINESS 
 
 ORGANIZATION. 
 
 APPLES. 
 
 Fletcher, S. W. Three Problems in Virginia Fruit Growing. Virginia 
 
 Agricultural Experiment Station,' 1913. Pages 1-15. 
 McNeill, A, Modern Methods of Packing Apples and Pears. Bulletin 
 
 34 Dairy and Cold Storage Commissioner's Series, Department of 
 
 Agriculture, Ottawa, Canada, 1913. Pages 5-67. 
 Paddock, W. Fruit Growers' Associations. Bulletin 122, Agricultural 
 
 Experiment Station, Colorado Agricultural College, 1?07. Pages 
 
 3-17. 
 Palmer, W. R. Packing Indiana Apples. Circular No. 39, Agricultural 
 
 Experiment Station, Purdue University, Lafayette, Indiana, 1913. 
 
 Pages 1-28. 
 Forty-fourth Annual Report of the Fruit Growers' Association of 
 
 Ontario. Toronto, Canada, 1912. Pages 3-116. 
 BUYERS AND PRODUCERS. 
 Camp, Wm. R. Farmers' Market Bulletin No. 1. List of Farm 
 
 Products for sa e. Division of Markets, West Raleigh, N. C, 1914. 
 Emmert, M. M. Partial List of Brokers, Commission Ivlerchanis, 
 
 Jobbers and Receivers of Fruits, Melons, Vegetables ana Berries 
 
 located at Principal cities in the United States and Dominion of 
 
 Canada, East of Rocky Mountains. Southern Railway, Washing- 
 ton, D. C, 1913. Pages 1-109. 
 List of Fruit, Vegetables and Melon Growers in the Territory Tribu- 
 tary to the Lines of Mobile & Ohio Railroad and Southern Railway 
 
 in Mississippi, 1913. Pages 1-56. 
 
 'For Sale". Bulletin. A circular published by the Southern Railway. 
 
 Office of Markets. J. M. Seaborn, Market Agent, Atlanta, Ga. 
 
 M, M. Emmert, Market Agent, Washington, D. C. 
 BUTTER, EGGS AND POULTRY. 
 Pennington, M. E. Studies of Poultry from the Farm to the Consumer. 
 
 Circular 04, Bureau of Chemistry U .S. Department of Agriculture, 
 
 1910. Pages 5-42. 
 Slocum, R. R. Marketing Eggs Through the Creamery. Farmers' 
 
 Bulletin 445, U. S. Department of Agriculture, 1911, Pages 5-12. 
 Taylor, H. C. The Prices of Farm Products, including price of eggs, 
 
 etc. Bulletin 209, Wisconsin Agricultural Experiment Station, 
 
 Madison, 1911. Pages 3-30. 
 Taylor, H. C, Schoenfield, W. A., Wehrwein, G. S. The Marketing of 
 
 Wisconsin Cheese. Wisconsin Agricu.tural Experiment Station, 
 
 Madison, 1913. Pages 3-4C. 
 Melvin, A. D. The Organization of Boys' and Girls' I'oullry Clubs. 
 
 Bulletin 562, U. S. Department of Agriculture, 1913. Pages 1-12. 
 
 CATTLE. 
 Rasmussen, Frederik. Cattle Breeders' Associations in Denmark. 
 
 Bulletin 129, Bureau of Animal Industry, U. S. Department of 
 
 Agriculture, 1911. Pages 7-40. 
 
 COTTON. 
 Brand, C. J. Improved Methods of Handling and Marketing Cotton. 
 
 Reprint from Yearbook of Department of Agriculture, 1912. Pages 
 
 443-462. 
 Sherman, W. A., Fred Taylor, C. J. Brand. Studies of Primary Cotton 
 
 Market Conditions in Oklahoma. Bulletin 36, U. S. Department of 
 
 Agriculture, 1913. Pages 1-36. 
 Carson, J. M. Packing and Marketing of Cotton. Special Agent Series 
 
45 
 
 No. 58, Bureau of Manufactures, Department of Commerce, 1912. 
 
 Pages 5-39. 
 Report of the Commissioner of Corporations on Cotton Exchanges. 
 
 Parts I-V, Washington, 1P09. 
 
 CREDIT. 
 Duffus, Wm. M. State Loans to Farmers. Wisconsin State Board of 
 
 Public Affairs, Madison, 1012. Pages 1-146. 
 Herrick, M. T. Land and Agricultural Credit in Europe. Division of 
 
 Information, Department of State, Washington, 1912. Pages 3-38. 
 ChapiUy A. R. Bank Commissioner of Massachusetts, Credit Unions, 
 
 S^tatement and Suggestions in regard to organizing and managing 
 
 a Credit Union in Massachusetts. Chapter 419, acLs of 1909. 
 
 Pages 5-34. 
 Land Mortgage Associations. Chapter 666, Laws of 1913, Madison 
 
 Wisconsin. 
 Cooperative Credit Associations. Chapter 733, Laws of 1913, Madison, 
 
 Wisconsin. 
 Young, James R. Land and Loan Associations. Office of Insurance 
 
 Commissioner, Raleigh, N. C, 1912. Pages 2-19. 
 Report of the United States Commission. Agricultural Creait, Parts 
 
 I and II. 63d Congress, 2d Session. Senate Doc. No. 318, 1914. 
 
 Pages 9-73. 
 Report of the Agricultural Credit Commission. Province of Saskatch- 
 ewan, Regina, 1913. Pages 2-31. 
 Wolff, Henry W. Cooperative Banking. G. E. Stechert Company, 151 
 
 W. 25t.h street, New York City. 
 
 FRUIT AND TRUCK. 
 Beattie, W. R. The Storage and Marketing of Sweet Potatoes. 
 
 Farmers' Bulletin 520, U. S. Department of Agriculture, 1912. 
 
 Pages 5-16. 
 Corhett, L. C. A Successful Method of Marketing Vegetable Products. 
 
 A Reprint from the Yearbook of the Department of Agriculture 
 
 for 1912. Pages 353-362. 
 Hint. W. N., S. B. Shaw, O. M. Clark. Truck Growing in North 
 
 Carolina. Bulletin of the N. C. Department of Agriculture, Sep- 
 tember, 1912. Pages 5-40. 
 McNeir, A. Cooperation and Fruit Growing. Bulletin 38, Dairy and 
 
 Cold Storage Commissioner's Series, Department of Agriculture, 
 
 Ottawa, Canada, 1912. Pages 7-46. 
 The Inspection and Sale Act. Part IX, Bulletin 40, Dairy and Co^d 
 
 Storage Commissioner's Series, Department of Agriculture, Fruit 
 
 Division, Ottawa, Canada, 1913. Pages 5-13. 
 Reimer, F. C. The Dewberry in North Caroina. N. C. Department ol 
 
 Agriculture, Raleigh, N. C. Pages 3-24. 
 Shaw, S. B. The Preparation of Fruit and Vegetables for Market. 
 
 Bulletin of N. C. Department of Agriculture, Raleigh, May, 1909. 
 
 Pages 3-38. Commercial Strawberry Culture. Bulletin of N. C. 
 
 Department of Agriculture, Raleigh, August, 1913. Pages 5-24. 
 Chandler, W. H. Cooperation Among Fruit Growers. Bulletin 44, 
 
 Missouri State Board of Horticulture, Columbia, Missouri, 1910. 
 
 GRAIN. 
 Report of the Interstate Commerce Commission in the matter of the 
 
 grain trade in relation to common Carriers. 1906. Pages 3-1128. 
 RETAIL PRICES. 
 Adams, N. C. Sugar Prices from Refiner to Consumer. Bulletin 
 
 Whole No. 121, Retail Prices and Cost of Living Series No. 7, 
 
 Bureau of Labor Statistics, U. S. Department of Labor, 1913. 
 
46 
 
 Pages 5-42, 
 
 Bulletins on Wheat and Flour Prices from the Farmer to the Con 
 
 sumer. 
 
 Butter Prices from the Farmer to the Consumer. 
 Croxton, Fred C. Retail Prices, 1890 to August, 1913. Whole No. 136, 
 
 Retail Prices and Cost of Living Series No. 11, Bureau of Labor 
 
 Statistics, U. S. Department of Labor, 1913. Pages 5-146. 
 
 Retail Prices, 1890 to 1911. Bulletin of the U. S. Bureau of Labor, 
 
 Whole No. 105, Part I, Department of Commerce and Labor, 1912. 
 
 Pages 5-48. 
 
 STORES. 
 Sinc'air, J. F. Distributive or Store Cooperation. Wisconsin State 
 
 Board of Public Affairs, Madison, 1912. Pages 7-4o. 
 Board of Trade Report on the Industrial and Agricultural Cooperative 
 
 Societies in the United Kingdom. London, 1912. 
 TOBACCO. 
 Report of the Commissioner of Corporations on the Tobacco Industry. 
 
 Parts I to n. Washington, 1909. 
 
 GENERAL WORKS AND PAMPHLETS. 
 Coulter, J. L. Cooperation among Farmers. New York City, Sturgis 
 
 and Walton Co., 1911. Pages 3-28. 
 Fay, C. R. Cooperation, at Home and Abroad. Macmillan Co., New 
 
 York, 1908. Pages 403. 
 Holmes, George K. Systems of Marketing Farm Products, Nu. 98, 
 
 Office of the Secretary, U. S. Department of Agriculture, 1913. 
 
 Pages 391. Price 75 cents. 
 Powell, G. H. Cooperation in Agriculture, New York, Macmillan Co., 
 
 1913. Pages 327. 
 The Agricultural Outlook. Farmers' Bulletin, U. S. Department ot 
 
 Agriculture. 
 Report of Committees Appointed by the Governor of North Carolina 
 
 ing Organizations in Europe. 
 Report of Committees Appointed by the Governor of North Carodina 
 
 on Needs of North Carolina Farmers with Regard lo Credits, 
 
 Marketing and Cooperation, 1913. Pages 3-13. 
 Sinclair, J. F. Agricultural Cooperation. Wisconsin State Board of 
 
 Public Affairs. Madison, 1912. Pages 5-132. 
 Williams, A. L. A Plan for a Cooperative Neighborhood. Wisconsin 
 
 State Board of Public Affairs. Madison, 1913. Pages 3-18. 
 Farmers' Clubs. Their Organization and Work. North Carolina 
 
 Agricultural Experiment Station Circular No. 15. 
 RURAL CREDITS. 
 
 A great deal has been said about Rural Credits during the last 
 few years. This discussion has necessarily been concerning foreign 
 institutions as we have no rural credit institutions of note in this 
 country. A few desultory efforts have been made in Massachusetts 
 and New York under state provisions for such organizations: they 
 have taken the form of short time personal credit associations or 
 banks. A campaign for a national system of rural credits, taking the 
 form of sending commissions to Europe in 1913 to study the subject 
 at first hand, resulted in congress appointing a sub-committee on 
 rural credits of the permanent Committee on Banking ana Currency 
 and authorizing this sub-committee to have hearings on the subject 
 that a bill might be drawn suited to American conditions. After ex- 
 tended hearings this joint sub-committee of the Senate and House, 
 reported a bill to the full committee of the Senate and House on 
 Banking and Currency May 12, 1914. This bill provided for the land 
 
. £>F WE 
 
 loan type of bank only, with a gdvftriliiient-aid fea'fcii^g/toji^ujfe^ident 
 Wilson opposed government aid and wanted the billtoTrrnVT^e for the 
 personal credit type of bank also. The hitch caused tne Democratic 
 caucus to drop this measure from the ones scheduled to be acted on 
 by Congress during the spring session of 1914. 
 What Is Rural Credit? 
 
 There are different kinds of rural credits: 
 
 1 — Long time credit based on land. 
 
 2 — Short time credit based on personal security. 
 
 3 — A combination of the two under one system of regulation. 
 
 Either of these may come by private initiative or by government 
 
 subvention. 
 
 There is cooperative banking that is not rural or urban but 
 
 cosmopolitan. 
 
 Either Rural or Urban Credits may or may not be cooperative. 
 
 The bill reported by the Committee on Rura^ Credits provided for 
 a system of banking patterned after the Federal Reserve Act oi 
 1913; with regional Land Banks owned by local Loan Associations, 
 individuals, corporations and, if not otherwise taken, by the national 
 government. 
 
 The loans were to be made only to members of the local Loan 
 Associations; they must be on first mortgages on farm land within 
 the district of the association; all installments to be made by amorti- 
 zation payments; the time to be between five and thirty years; 
 allowing the debtor to extinguish his debt by cash at any time after 
 five years; the interest not to exceed the legal rate of the state. 
 
 Loans to be made for the purpose of liquidating indebtdness; 
 improvement of the land; equipment of the farm; for the purchase oi 
 a home. 
 
 Loans to be limited to fifty per cent, of the value of the farm, and 
 twenty five percent of the value of the buildings which must be 
 insured in the name of the creditor; loans limited to bonafide resident's, 
 and limited to a maximum of $4,000 to any one borrower and to 
 twenty percent of the capital and surplus of the association making 
 the loan. 
 
 The capital of each regional Land Bank must be not less than 
 $500,000. 
 
 Their powers were to issue and sell farm loan bonas; to invest 
 funds in first mortgages on real estate; to receive from national farm 
 loan associations first mortgages on land; to empower the loan asso- 
 ciation as agents and collect the installments and other sums payable 
 under the terms of the mortgages and bonds secured thereby; to 
 deposit funds with any Federal Reserve Bank or member "bank of th"" 
 reserve system; to accept deposits of securities or current funds 
 from its member-bank stockholders only, but should pay no interest on 
 deposits. 
 
 These land banks were to keep one-fourth of the net earnings as 
 a reserve, after which the n*t earnings may be declared to stock- 
 holders up to six percent, which should be cumulative; all excess 
 earnings above six percent should go to the Federal government. 
 
 The net earnings of the farm loan associations shou'd be treated 
 the same way except that all over six percent should go to the reserve 
 account. 
 
 Every Federal land bank and every farm loan association with 
 all their possessions and transactions, except realty owned in fee 
 
 simple, was to be exempt from all national and state taxes. 
 
 It provided for the use of postal savings funds to be used to 
 
purchase farm loan bonds in lieu of U. S. bonds or other securities; 
 this to be done in case of new issues at the discretion of the Federal 
 Reserve Board, or if old issues they to be bought only on condition 
 that they were below par — thjs to help keep them at par. 
 
 It provided that the Secretary of the Treasury should, upon 
 request of Federal ^and banks and upon the recommendation of the 
 Federal Reserve Board, purchase from the Federal land banks farm 
 loan bonds not previously sqld, in any amount not to exceed $50,000,000 
 during any one year. 
 
 I have here given the salient features of the ^aw as proposed by 
 the joint Senate and House Committee on Rural Credits May 12, 191^ 
 
 The main thing in securing credit on favorable terms is the 
 proper mobilization of security. This the European borrowers have 
 learned to do on the mutual or cooperative basis. With the same 
 mutual trust, and minute requirements upon the part of the members 
 of the little banks, it could be done in this country. If we have not the 
 honor among us to back up mutual security we pay the penalty to the 
 usurer and make our resentments known by complaining. 
 
 The task of building a rural civilization and making the 
 rural community attractive and a desirable place to live must be worked 
 out by those who cast their lots with the agricultural class. Social 
 Utopias cannot be handed down from governments or philanthropists 
 to those incapable of developing it from within their own ranks. 
 
 This government will respond to the call of the farmer when he 
 votes with orders attached. 
 
YC 26646" 
 
 320928 
 
 
 
 UNIVERSITY OF CALIFORNIA LIBRARY