10 



Stock to the amount of S10,000 was sold to 30 farmers at a 

 par value of $25 per share, 1 share being issued for each five 

 cows. 



The creamery company was incorporated under the co- 

 operative law of Vermont, which enables one person to hold 

 not more than 10 per cent, of the capital stock, and limits 

 dividends to 6 per cent. 



Plans for a plant were agreed upon after consultations with 

 representatives of the Federal and State departments of agri- 

 culture. Representatives of these departments were also con- 

 sulted concerning all the plans of organization, management, 

 etc. 



The plant was completed and opened for business about the 

 middle of November, 1916. 



Let us contrast the position of this community now with that 

 which obtained before this plant was built. These farmers 

 were selling their milk individually to the Borden Condensed 

 Milk Company at a price fixed by that company. If these 

 farmers had formed an organization, and sent a committee to 

 Boston or New York to try to induce another buyer to come 

 into the territory, the buyer would have reasoned something 

 like this: "The territory at Richmond is occupied by one of 

 the strongest concerns in the United States. If I go up there 

 to buy milk I must erect a plant at an expense of at least 

 .$10,000, and I must enter into a fight with this strong concern 

 now occupying that territory. Perhaps, after a large expendi- 

 ture, I will be able to get only a small amount of milk. I see 

 nothing in the proposition for me." On the other hand, 

 equipped as they are with a milk plant, which is supposed to 

 carry with it the product of the incorporators, an entirely dif- 

 ferent proposition is laid before the dealer. The farmers are 

 able to say to the dealer, "After making a survey of the terri- 

 tory about Richmond we have formed a farmers' co-operative 

 organization to build a milk plant which will handle the prod- 

 uct of so many cows. We expect to have so much milk each 

 month in the year. The plant belongs to us, and will be 

 operated by our own manager. We do not ask you to invest a 

 cent. We do not ask you to enter into a fight with the con- 

 cern now occupying the territory, as we are going to do that 



