72 THIRTY-FOURTH ANNUAL REPORT OF THE 



Farmers as a class, I think, are possessed of a jealous disposition 

 and have an idea that combination of all kinds are to be looked upon 

 with suspicion and to be avoided. We need to have a higher education 

 in business principles and a more abiding faith in mankind, and then 

 success will attend our efforts. 



Let us briefly consider the first part of our subject, organizing a co- 

 operative creamery. The first thing to be considered and the foun- 

 dation of the whole structure rests upon having a sufficient number of 

 cows, to furnish milk or cream 365 days in a year. You might as well 

 expect to run a water wheel without water, as a creamery without a 

 supply of milk or cream. 



From 1,000 to 1,"200 cows is a fair basis to start upon. Have as 

 near this number as possible pledged to your creamery, for at least one 

 year. 



Having the sufficient number of cows pledged, the next step in 

 order is raising the necessary amount of stock. This stock should be 

 divided into shares of such size as to enable the farmer of small means 

 to own one or more shares, and this stock should, if possible, be owned 

 by farmers and patrons of the creamery, for they are the persons that 

 are directly interested in this business. 



Having the necessary amount of stock subscribed, the next step is 

 the forming of the company under the State law, choosing at this time 

 the name to be given the company and electing the officers. 



These will consist of a President, Vice-President, Secretary and 

 Treasurer, a Board of Auditors and three or five Directors. From the 

 Board of Directors a President should be chosen, who may be the 

 manager also. 



It is of the utmost importance that the officers should be chosen with 

 great care, for the future prosperity of the creamery may depend upon 

 this selection. They should be men of business ability, conservative 

 and honest; men in whom you have the utmost confidence. When you 

 have chosen your officers and placed in their hands the management of 

 this business, please let them alone. At the close of each year's business 

 they will be required to give an account of their stewardship, and if 

 then found wanting, the matter is then in your lianas for adjustment. 



Now comes the location and erection of a creamery building and 

 furnishing it with all necessary machinery for manufacturing butter. 

 Right at this point is a large rock upon which many co-operative cream- 

 eries have been dashed in pieces. Creamery promoters, or as I call 

 them, creamery sharks, are usually on hand with plans and specifications 

 which call for a much larger outlay of money than i^ necessary. In 

 their smooth, flattering way they will have your name signed to a 

 contract for a building before you realize what a mistake you have 

 made. Avoid these fellows as you would a plague. We have in our 

 State several creamery supply houses of honorable business reputation 

 of whom all necessary information can be had, with plans for building 

 and estimates of cost, etc. 



Build just large enough for your needs, and no larger. A creamery 



