SIXTH ANNUAL YEAR BOOK— PART VIII. 853 



WTiat, but a few years ago, was the sneer and derision of the so-callefl 

 orthodox grain men of the state is now a giant to which all dealers in 

 the products of Iowa soil are willing to bow. The history of this organ- 

 ization movement is unique. There is no other business organization quite 

 like it anywhere. It aims at no dividends, only in the prices it pays for 

 grain, the largest seller, of course, getting the greatest returns. Its slogan 

 it, "A fair deal, stick together, pay your commissions, and when selling 

 elsewhere look our for the weights." There is no assessmens of stock- 

 holders and in no case recorded in Iowa has any society experienced a 

 deficit. The directors may borrow money with which to operate the 

 business, but not above two-thirds of the paid in capital stock. Above 

 that amount, if money is obtained, it is secured through the individual 

 guarantee of the director and is in no sense an obligation to the society. 

 Coal, flour and feed are sold to members at a slight margin and to others 

 at an increased margin. It is estimated that men who deal with 

 co-operative companies save from 10 to 25 per cent in every purchase. 



All farmers' co-operative associations of the state are founded upon 

 the theory that the farmer is inslaved to grain buyers and that this 

 method is his only emancipation. The fight for supremacy and for the 

 lives of the societies in the different sections where they are located 

 is kept ever fresh in the minds of the members each year. It is rehearsed 

 as often as the association renews its vows. Each year the question is 

 asked whether there is a desire to go back to the old method of selling 

 the product of the farms, but the answer always comes, "Go ahead, stick, 

 together, and we will win." 



PENALTY IS PKOVIDED. 



To keep the unfaithful in line a penalty is provided. If a member of 

 the association sells his grain to an old-line elevator he is taxed % 

 cent commission. In a few instances over the state examples have been 

 made of those who are catering to the "enemy" that have been salutary, 

 and such offenses, If persisted in, usually mean banishment from the 

 councils of the association and almost social ostracism. The culprit has 

 often found it convenient to remove to some other locality. 



Be it said, to the good fortune of the co-operative organizations of 

 Iowa, that they are well managed, and there has not yet been developed 

 a single breach of business unfaithfulness on the part of any of its 

 local managers and oflacers. In all cases, so far as can be learned, the 

 management has been both shrewd and honest and has instantly refused 

 to listen to any and all overtures from other concerns. Offers have 

 been made by line companies to enter into an agreement with the 

 association to fix the prices at local points, but the temptation has in 

 every case been spurned, the officers believing they detected some 

 attempt to inveigle them into forfeiting their character by unlawful 

 combinations. 



This danger — mismanagement — was the rock the enemies and some 

 of the friends, even, of the co-operative methods was s ure the movement 

 would strike before it went far, but, happily, these have been avoidea. 



