PURCHASE AND DISTRIBUTION OF FEED 79 



from the car on arrival instead of being taken from a warehouse; 

 and in still other communities, farmers themselves have operated 

 as individuals and as groups in bringing in and distributing among 

 themselves carloads of feed. 



128. The Adirondack Farmers Co-operative Exchange, Inc. 

 — One of the most successful of the co-operative associations, 

 and one which typifies, according to the best experience to date, 

 sound organization and operation, is the Adirondack Farmers 

 Co-operative Exchange, Inc., located at Fort Edward, New York. 



Like the G.L.F. Exchange, this is a co-operative stock corpora- 

 tion. Since co-operative associations receiving and distributing 

 feed usually need to own property and maintain stocks of goods, 

 experience has developed the fact that the co-operative stock form 

 of corporation which has paid-in capital is a better business in- 

 strument for farmers to use than the non-stock form. 



In practice the Adirondack Farmers Exchange uses the G.L.F. 

 Exchange to purchase grain for it in the primary markets and to 

 manufacture its dairy rations. This is proper, since the same farm- 

 ers are stockholders in or owners of both companies. 



In the operation of the G.L.F. Exchange and the Adirondack 

 Farmers Exchange, it has been demonstrated beyond a doubt that 

 the most important factors, next to the absolutely essential skilled 

 management, are volume of business and adequate working 

 capital. These factors are so important that men who are author- 

 ities on the question are very doubtful of the success of a co-opera- 

 tive corporation which cannot be adequately capitalized, which 

 cannot be assured of an adequate business, and which cannot secure 

 a trained manager. Unquestionably to make the greatest success 

 possible all three of these factors must be combined. Groups of 

 farmers who are not reasonably sure of combining them had best 

 not develop local co-operative associations. They might better 

 depend upon the services of established dealers who will work with 

 them and who will give their business to the larger farmer-owned 

 co-operative organizations like the G.L.F., or depend upon their 

 own efforts in pooling and bringing in carlot shipments to be 

 distributed out of the car. 



