THE CO-OPERATIVE MOVEMENT IN WISCONSIN 17 



The farmers established co-operative elevators to escape from the un- 

 fair conditions dictated b}^ the monopolistic combines which secured control 

 of most of the existing elevators about the year 1900. These combines — 

 the " line " companies as they are called — are said to have practised every 

 known form of discrimination with the object of crushing competition. 

 They were seconded by the railways which gave the combines rebates on 

 freight and impeded in a variety of ways the business of the indepen- 

 dent dealers. Farmers began to build co-operative elevators abou.t igoo and 

 in spite of fierce opposition from the combines and the railwaj's, nearly 

 1,700 co-operative elevators had been established in the United States 

 by 1911. 



The farmers' associations owning or leasing these elevators are gener- 

 ally organized as companies under the ordinary company laws of the vState. 

 but a member's holding of shares is limited, and in some cases each member 

 has one vote irrespective of the number of shares he may hold. The amount 

 of capital subscribed varies from $ 2,500 to $ 20,000 in shares of from $ 10 

 to $ TOO nominal value. The members, who are always grain-growers, 

 are under contract to sell to the association, though they may sell to a dealer 

 who offers a higher price on condition that they pay over a portion of the 

 enhanced price to the association; and as long as this condition is lo3''ally 

 fulfilled a competitor who outbids the association with the idea of cnishing 

 it is, in fact, contributing to its support. Any surplus on the season's work- 

 ing is distributed among the members, either as dividend on shares or on 

 the basis of their sales to the association. Where competition is keen a 

 co-operative association does not attempt to make profits, but is content to 

 cover operating expenses alone, and can thus pay prices for grain which 

 enable it to hold its own against any outside trader or capitalistic company. 



Co-operative warehouses for the storage and sale of potatoes have been 

 established in Wisconsin ver}- much on the lines of the co-operative 

 elevators. Their organization is not promoted by any central association; 

 one community adopts the idea from another which has made a success 

 of the venture, and the movement grows steadily. In 191 1 there were 

 potato warehouses at more than 20 points in the State, and there were a 

 few co-operative warehouses for the storage and sale of tobacco. Most of 

 these warehouse associations act as general purchasing agencies in the matter 

 of farm supplies for their members. 



4. — Livestock Shippers' Associations. 



Though livestock breeders' associations are numerous in Wisconsin, 

 associations for the co-operative sale of livestock, which might be expected 

 to work effectively in connection with breeders' associations, are as yet few 

 in number. Within the last four years, however, livestock shipping asso- 

 ciations have been formed at some fifteen or twenty points in the State. 

 The associations aim at eliminating the local buyers who make large pro- 

 fits on the operation of buxang from the farmers, and re-selling in the great 



