Rensselaer Union, Volume 9, Number 29, Rensselaer, Jasper County, 5 April 1877 — Co-Operation Among Farmers. [ARTICLE]

Co-Operation Among Farmers.

Of all the co-operative experiments made in this State, only two, that we know of, have been successful; and they strange to say, amohg a class of persons who were thought to know least about the principle of co-operation, and to have the fewest facilities tor testing its virtue. The examples referred to are the Jackson (Cape Girardeau) Co-operative Association and the Grangers’ Co-operative Store at Portland, in Callaway County. The former, which has been in operation about eight months, made its first semi-annual statement in February, declaring a dividend of sixteen per cent, to stockholders and a dividend to non-stockholders on the amount of purchases of eight per cent. This, being a semi-annual dividend, is at the rate of thiny-two per cent, profit to stockholders. We take the figures from the Jackson Gath-Book, which does not give the amount of capital of the association, nor any details of its operations. The Portland store, with a capital of only $2,100, sold goods to the amount of about SIO,OOO during the first year of its existence, making a clear profit of SO7O over all expenses, and declaring a dividend of fprty per cent, to its stockholders. This store was organized by the local and the money furnished by farmers alone. Only Grangers are allowed to be stockholders in it. The business is conducted for the stockholders by a clerk at a salary of fifty dollars a month, who seems to be well qualified for the position; He and the operations of the store are subject to the supervisron of a committee of the stockholders, who meet at the store once a month to receive the report and examine the books. Although very little has been done in the way of co-operation in this country, and many experiments in it have ended in humiliating failure, these examples show what ean be done. It is true they are humble of origin, and not striking in their first exhibit', but they are not as humble as the famous experiment among the stocking-weavers of Rochdale, England, in 1824,' which has grown into a business of millions. The Jackson and Portland stores are perfect examples of success; the first caused one dollar of invested capital to grow into $1.16 in six months, and the other has caused one dollar of invested capital to grow into $1,40 m a year—and this, too, at a time when business on the average 'shows more losses than profits. There is no reason why these examples should not be imitated by farmers all over the State. There is nothing complex in co-operation; the principle of it is very simple. The capital is subscribed and paid in cash, and all goods are sold for cash, and cash only—even a stockholder not being allowed to buy without paying the money down for his purchases. The goods are not Cold at cost; the advantages of the principle are not sought in that way. The rule is to sell at the current rates prevailing in the neighborhood, or very nearly; and at the end of six months there is declared a moderate dividend of 5, 8 or 10 per cent, oatbe whole amount of goods sola—which goes to all customers, whether they are stockholders or not—and the remainder of the profits is distributed among the stockholders as a dividend on the capital. The dividend to customers is intended to invite purchasers, and has been found a very effectual way of doing it If this dividend be eight per cent., a

customer who .has bought fifty dollars' worth of goods will receive four dollars in cash. One who has lx>ught SIOO will receive eight dollars. In other words, the money ne has laid out in family supplies buvs as much as if laid out anywhere else, and perhaps a little more, and yields him a dividend of eight per cent, beside. The stockholder receives a dividend on the amount of hi* purchases, and one on his stock in addition—thereby receiving double advantage. The real secret of success in the system is the cash method of doing business; there are no losses, through the failure of customers; no lawsuits, and no complex bookkeeping; and asmallamountof capital, being always available, can be turned over several times in die year, and thus made to yield a large aggregate dividend or several moderate profits. The advantage to farmers of buying for cash is not to be overlooked, for it is one of the most important ultimate effects of the principle. Anything that teaches Missouri farmers as general rule not to go in debt, and to do without what they cannot pay down for, would be worth millions to the State. —St. Louie Republican.