428 IOWA DEPARTMENT OF AGRICULTURE 



I am told that promotion costs on the Fairbault plant were 11 per 

 c?nt, but the Madison, Wausau, New Richmond, Rockford and La Crosse 

 projects surely did not come under 15 per cent for the promoters. In 

 Wisconsin alone, it is estimated that over $250,000 will have been spent 

 for promoters' fees on the four plants which have been started. 



Word has come to me that farmers in the south are "going mad" over 

 the idea of starting farmers' co-operative packing plants, and I have had 

 correspondence from Missouri parties who tell of great interest in that 

 state in the idea. I understand also that the question may come up in 

 Iowa. 



Now, as to the conditions these packing plants must face. Clearly, 

 the starting of any more plants within close touch of each other in 

 Wisconsin would be a further division of territory and would harm the 

 existing plants. Also, these plants may be used by buying butchers 

 and retailers for competitive purposes unless they have some means 

 of keeping in touch with each other. Consequently, the National 

 Agricultural Organization Society has suggested to each of the farmers' 

 co-operative packing companies in Wisconsin that, since the big pack- 

 ers can care for by-products most efficiently, and have advertising 

 facilities and railroad facilities and accommodations and credit and 

 strength and influence, the co-operative packing plants should do some- 

 thing to offset these difficulties. We have suggested that they get to- 

 gether in the near future and form a federation. We have suggested 

 that they take some steps toward working out a common state brand 

 and a common form of advertising, and that they also arrange to pur- 

 chase collectively all materials used in factories, and to employ col- 

 lectively legal help and help of a scientific and expert nature, and 

 that they should have an additional department for the instruction of 

 the farmers in order to build and keep a direct interest on the part of 

 the supplies in the co-operative plants. 



Looking at this matter as one who would like to see all forms of co- 

 operative effort among farmers succeed, I would say that the question 

 is still an open one whether such plants can succeed. And while I feel 

 that we should do everything we can to help those plants succeed 

 which have started, that there is now time to wait a while, three, four, 

 five or six years if necessary, until we can see what these plants can do, 

 before any of us put any further money into new farmers' co-operative 

 packing house ventures. 



It is still an open question whether the small packer can organize 

 his help under the efficiency basis. It is still an open question whether 

 he can get a sufficient supply of live stock at regular periods. It Is 

 still a very doubtful question whether, even if they have an efficient 

 management, that the big packers will let so many of these co-opera- 

 tive concerns sell to the regular trade. So, gentlemen of the Corn Belt 

 Meat Producers' Association, it is well to be very careful and to wait. 

 There is plenty of time, and you now have an excellent opportunity of 

 observing whether a co-operative packing concern can succeed without 

 yourselves stepping blindly into the snares spread by the J. Rufus 

 Wallingfords. 



