EXTENSION DIVISION. 253 



Milk Producers' Association, that, in the persons of Milo Campbell and 

 N. P. Hull, shaped the plans of the National Organization of Milk Pro- 

 ducers in December of 191G. 



The Federated and Federation of Fruit Growers in Michigan have 

 pursued in a similar manner, the plans of interpreting supply and de- 

 mand in terms of value. Where there was little union, there have now 

 sprung up, strong bodies of fruit men Avorking together. The services 

 and counsels of men of the type of George E. Prater and R. H. Morrill, 

 have been invaluable in this work. 



When the question of minimum price control Avas first urged, the Mar- 

 kets Office nmde inquiry of 200 farmers and business men of Michigan, 

 and transmitted a summary to Senator William Alden Smith. This re- 

 port was published verbatim in the Congressional Record, as an expres- 

 sion of Michigan sentiment. 



The enactment of the Clayton Amendment to the Sherman Anti-Trust 

 Law with agricultural organizations exempted when not organized for 

 profit and not having capital stock, has been a reason for the effort to 

 secure organizations of cooperative bodies under the Act of 1903. The 

 reason for the exemption of agricultural organizations is not one of 

 political favoritism but because, when the profits of agriculture are re- 

 turned to the producer on the basis of his product, rather than upon his 

 ownership of stock, then the line is clearly drawn between the possibil- 

 ities of agricultural cooperation and exploitation. The United States 

 has recommended that a similar cooperative Incorporation Act, to that 

 of Michigan be enacted in all states. A distinction is drawn between 

 capital and capital stock. Stock implies control through ownership. 

 Capital derived from membership fees and individual credit loaned to 

 the association, maintains the distinction the law makes between co- 

 operative and other corporations. The federation of corporations or- 

 ganized under other statutes, or when these affiliate or act in any 

 capacity together places them. in technical violation of the Federal laws. 

 An example of the most modern cooperative body is that of the Ply- 

 mouth Cooperative Association. The capital when needed, is loaned by 

 the banks, by each member giving a non-interest bearing collateral note 

 for ij^oo.OO. The profits of the transaction eventually discharge the 

 loans. These notes, good for three years, are ready collateral for use, 

 the same as the city investor borrows on stocks or bonds as collateral. 

 From a banking standpoint, the securit}' is good. This is the Danish 

 method of cooperating credit, which is always more plentiful than cash. 

 Cooperative Associations, seeking; a model, might Avell pay a visit to the 

 Plymouth bod}'. There are large savings possible in the purchase for 

 cash of all farm supplies as well as actual manufacturing and selling. 

 Wherever there has been a call for various cooperative bodies, the Mar- 

 kets department has been at their service. 



In the matter of statutory regulation of trade, the Markets Office is 

 averse to the employment of police powers as a part of its prescribed 

 duties. There are other departments of the state which are in need of 

 this power and where its enforcement can best be accomplished. In 

 marketing much of the unmerchantable products which are at the same 

 time Avholesome and of great food values could well be taken off the 

 market by drying. An established plant to make potato flour would al- 

 low commercial grading of potatoes without the ever present twilight 

 zone of the unmerchantable. 



