THE ECONOMIC FACTORS 143 



The producers would then have facilities for the disposal 

 of their product in the manufacturing of butter or cheese, 

 if they are unable to secure satisfactory prices from the 

 dealers. 



Producers may look forward to receiving more from their 

 product when they cease to allow others to furnish them 

 their cans, to collect (taking all grades, little or much), to 

 dictate price and to process, grade and market their milk and 

 cream. 



Co-operative creameries have failed in the past largely 

 because of inefficient management (a poor bookkeeping sys- 

 tem, no allowance for depreciation, no allowance for surplus, 

 no safeguard preventing one or two persons from gaining 

 control of the company, and the lack of knowledge of new 

 methods of testing, manufacturing and marketing). 



A milk plant is important to the prosperity of the com- 

 munity. A certain small plant, not well equipped or man- 

 aged, in one of our New England localities, paid the farmers 

 last year nearly $100,000, which brought as much money 

 into the community as many manufacturing establishments 

 employing one hundred and fifty to two hundred men each. 



If, as this committee reported, "at present the 

 general farmer has very little voice in determining the 

 price to be paid for his milk and cream," and "takes 

 what the dealer offers, which is generally the price for 

 no special grade of product and is influenced largely by 

 the yearly surplus," and is otherwise at a disadvan- 

 tage, then this proposal of co-operative plants is one 

 seriously to be considered. (For further details see the 

 report of the committee. 12 ) 



