. NINETEENTH ANNUAL lYEAR BOOK— PART VII 407 



market. Wisconsin, Minnesota and the Dakotas sliowed rapid increases 

 during tliese first years. The success of these first companies soon be- 

 came known to nearby towns, where in many cases new associations were 

 started. 



According to Farmers' Bulletin No. 718, of the Department of Agricul- 

 ture, shipping companies are developing rapidly in Wisconsin, Nebraska, 

 Indiana, North Dakota, South Dakota, Kansas, Michigan, Illinois, Ohio and 

 Minnesota. In 1916 Minnesota had over two hundred of these companies. 

 In 1917 Wisconsin had better than two hundred and fifty. In Iowa at the 

 present time, according to the latest available information, two hundred 

 and seven of these companies are working successfully. An estimate 

 based on figures from some thirty companies shows that these companies 

 in Iowa shipped stock valued at $75,000,000 in 1918. According to figures 

 obtained from these companies, the farmers have saved from 25 to 85 cents 

 per 100 pounds, or a total saving of not less than $2,500,000. 



Several factors may be said to have contributed to the organization of 

 these associations. First, the farmers felt that local buyers received too 

 large a margin of profit. Second, there seemed to be an elimination of 

 competition in some sections, thus increasing a margin already high. 

 Third, the lack of any permanent and responsible means of marketing in 

 some communities has forced their development. Fourth, the desire of 

 farmers to become acquainted with the central market, with the idea of 

 improving their stock to meet the requirements of the market, has been a 

 potent factor. Fifth, the general co-operative movement among farmers, 

 looking for a chance to expand, has found ample room in this direction. 



The slowness of development in Iowa has been due to several reasons. 

 First, a great many producers have had carloads of their own stock to 

 market. Second, efficient service in many cases has been given by the 

 local buyers. Third, the general prosperity of the Iowa farmer in the past 

 has not forced him to seek relative small economies in marketing his 

 stock. With an ever-increasins demand for economy in marketing farm 

 produce, the shipping company, as well as other centralized organizations 

 for co-operative action, is sure to increase in numbers in the next few 

 years. 



The simple form of organization that suffices for shipping companies 

 is one of their leading features. Practically no capital is required, since 

 payment is not made to the members for stock shipped until the returns 

 are received from market. The common method of organization by the 

 farmers is to hold a meeting, have the problems involved explained, elect 

 directors, adopt a simple constitution and by-laws, and secure a manager. 



But few of the companies organized in Iowa have incorporated under 

 the co-operative law. Ever the incorporation is not necessary, it is ad- 

 visable to do so as a protection to the members. The cost of incorpora- 

 tion for such a company can be accomplished by the payment of a filing 

 fee of $1 if it is incorporated under the co-operative law passed by the 

 Thirty-sixth General Assembly, which permits companies with a capital 

 stock of less than $500 to file their articles of incorporation or amend- 

 ments thereto for $1. If not incorporated, the organization, as such, can 



