420 IOWA DEPARTMENT OF AGRICULTURE 



have succeeded in starting several large enterprises for which they have 

 charged an excessive promotion cost. 



Not only have these promoters persuaded farmers to start packing 

 plants, but they have induced the launching of a number of commercial 

 projects whose hopes of success are dubious indeed. 



Before going further, I would call your attention to the fact that 

 this talk is directed against the promotion of dangerous and doubtful 

 commercial enterprises, and the misuse of the term "co-operation," and 

 nothing that I say should be interpreted to mean that farmers can not 

 carry on enterprises of a large business character in a co-operative way. 

 Enemies of co-operation have pointed to the packing house situation and 

 claimed that co-operation and co-operative principles will not work, so far 

 as farmers are concerned, in big business operations. - To contradict such 

 statements it is only necessary to point to the operation of the California 

 Fruit Growers' Exchange, which represents a combined capital of nearly 

 $130,000,000. This organization, formed on co-operative lines, and con- 

 trolled by co-operators, annually markets 30,000 or more carloads of lem- 

 ons and oranges, and maintains a distributing and sale system that 

 blankets the world. But since there is "a time for everything," farmers 

 should beware of undertaking enterprises for which they are not pe- 

 culiarly fitted, and against handicaps which may be overwhelming. 



No one is a stronger believer in agricultural co-operation than myself, 

 and a large part of my activities are devoted solely to the work of spread- 

 ing the knowledge of and the application of co-operative principles to farm 

 business. With this explanation we may now take up the farmers' co-op- 

 erative packing company movement, and, from its present status, arrive 

 at some conclusions with regard to the opportunities afforded farmers 

 in this line of business. 



The first cooperative packing project undertaken in ths country 

 by farmers was at La Crosse, Wisconsin. I wish that I could tell you 

 that it was built by the farmers when it was started; but, unfortunately, 

 it Avas not. If there are any stockholders of this plant present (and 

 there are some Iowa stockholders), it will be of interest for you to 

 know that from start to finish no more dubious deal was ever put over 

 American farmers than this one at La Crosse. The Farmers' Co-oper- 

 ative Packing Company of La Crosse closed its doors in December, 

 because Manager D. H. Baker was not willing to keep the plant going 

 when he knew that it would not pay its way. With its shutting down, 

 the community has awakened to realize that the plant itself is prac- 

 tically worthless save for some machinery and the river frontage along 

 the railroad tracks. Of the $265,000 subscribed about three years ago, 

 there is practically notliing left except a dilapidated building and the 

 machinery, much of which is practically worthless — and the prospects 

 of dissolution. How, then, did the farmers lose their money, and why? 

 I am going to call things by their right names, and am going to 

 name the persons who are deemed responsible for this loss of money 

 and the defamation of the fair name of co-operation in La Crosse. 



