692 



AMERICAN BEE JOURNAL 



Nov. 2, 1899. 



men are working' tog-ether, differences of opinion will arise 

 as to plans and methods, and rig-ht here is where the dan- 

 g-er usually lies in co-operation, hence the less the number^ 

 of things that are attempted the less friction there will be." 

 So I lav it down as a general rule to begin with in conduct- 

 ing a bee-keepers' exchange, have only two main objects, 

 namely, supplying cans or other packages for the honey, 

 and marketing the product. 



Some might suggest that the exchange should also 

 furnish the members with their bee-supplies, and in some 

 places this might be feasible, but here in Arizona we tried 

 it once and did not consider it a success. To do anything 

 in this line, supplies would have to be bought in carload 

 lots, and, outside of hives, not enough things are wanted 

 each year to make up a carload. In this valley so many 

 different kinds of hives are used that it was found impracti- 

 cable to make up a car. So, as conditions are here, and as 

 they are in most places where co-operation will be of any 

 practical benefit to the honey-producers, I believe that an 

 exchange should only attempt to supply cans and market 

 the honey. 



Wherever there are located a number of honey-pro- 

 ducers who, combined, produce honey in sufficient quanti- 

 ties to ship by the carload, I believe that successful co- 

 operation is not only possible, but is really necessary in 

 order to attain the best results. These producers must, of 

 course, be located close enough together so that they can 

 get together occasionally to direct the management, and so 

 that their honey can be concentrated at some central ship- 

 ping-point without too much expense. Given these condi- 

 tions, a successful bee-keepers' exchange is not only pos- 

 sible but necessary. 



The advantages to be derived thru co-operation, where 

 conditions are favorable, are so apparent that I do not deem 

 it necessary to take the time to set them forth, so I will pro- 

 ceed to give the essential details for such an exchang-e. 



HOW TO ORGANIZE. 



The best form for the organization is probably an in- 

 corporation. The articles of incorporation should expressly 

 provide that onlj' honey-producers are eligible to buy vot- 

 ing stock in the company, and that whenever any stock- 

 holder ceases to be actually engaged in the production of 

 honey his share or shares of stock should not be votable at 

 any meeting of the company unless it becomes the property 

 of some honey-producer. This provision keeps the manage- 

 ment of the organization in the hands of those who are per- 

 sonally interested. Then it should be provided that no 

 proxy voting be allowed. This maj' work a hardship occa- 

 sionally, but in the long run will be best. Those who have 

 not enough interest to be present when properly notified 

 should not complain, and my experience and observation in 

 co-operative organizations show me that it will be best to 

 allow no proxy votes. 



To overcome the possibility of " no quorum," it should 

 be provided that the secretary shall give each member no- 

 tice by mail several days before the meeting, and where 

 such notice has been given, five members (or some other 

 small number) shall be qualified to transact business. 



No considerable amount of working capital is advisable. 

 First, because but little is needed ; and, second, becau.se the 

 ownership of apiaries changes so frequentlj-, and it would 

 complicate matters very much if each share represented a 

 considerable cash outlay. The purchase of cans is the only 

 call for a considerable amount of cash, and for this it is 

 better to arrange to borrow what is needed than to compli- 

 cate matters by having a large capitalization. For these rea- 

 sons the shares of stock should be sold at a low figui-e, say 

 SI. 00 to $2.00 each, and a person should be entitled to buy 

 and vole one share for each SO colonies of bees he owns, and 

 no bee-keeper owning less than 25 colonies should be al- 

 lowed a voting share in the organization (altho the product 

 of the small producers should be handled for them when 

 desired). 



This plan fixes it so that each member's influence in 

 the management is exactly in proportion to his interest, 

 and this I believe to be the correct principle. Where the 

 " one man, one vote " idea prevails, the man who produces 

 a couple hundred pounds (and perhaps sells that at home) 

 has as much influence in the selection of officers and in con- 

 trolling the business of the exchange as the man who pro- 

 duces ,50,000 pounds. This is not right. 



Meetings of the general membership should not be at- 

 tempted often, as, besides the election of officers, little 

 should be attempted by the general meeting except to de- 

 cide upon the general policy and methods of doing the 

 business. The important officers are the board of directors. 



five in number, and the secretary-treasurer, who is the busi- 

 ness manager. The success of the exchange depends very 

 largely upon the selection of the proper person for secretary 

 and manager, as it will be necessary to allow him a good 

 deal of discretion in conducting the business of the ex- 

 change. If the exchange covers a considerable scope of 

 countrj-, as it will in most cases, the directors will likely 

 live some distance apart, and if the secretary is required 

 to get the board together (which will usually take several 

 days) before he can decide upon what action to take, a sat- 

 isfactory- business cannot be done. The board will have 

 executive management, but the good judgment of the sec- 

 retarv must be trusted to a very large extent. 



The secretary should be pa'id a fit sum. either percarof 

 can of honey, or else so much per case, both shipt in 

 empty, and, filled with honey and sent out, that is, handled 

 so that his pay will be in proportion to the work done. A 

 fund for meeting the running expenses of the exchange is 

 raised by a charge of a few cents per car profit on empty 

 cans furnisht, and a few cents per car of honey shipt. The 

 number of cents per car will, of course, have to be regulated 

 according to how much is paid the secretary, and what the 

 other expenses are. 



In the spring each shipper furnishes the secretary with 

 an estimate of the number of cases of cans he will need for 

 the season, if the crop is an average one. Then one or 

 more cars of cans, according to the prospect for a crop, are 

 bought and distributed proportionally to the shippers, as, 

 for instance, if the total of the estimates be 5,000 cans, and 

 2,500 cases are bought, each one receives 50 percent of his 

 order, and if the season is a good one more cans are bought 

 later. 



Some pay cash for their cans, but the majority get them 

 on time, to be paid for out of honey shipt. paying whatever 

 interest on the deferred payment that the exchange pays. 

 Those getting cans on time sign a receipt which provides 

 that the cans remain the property of the exchange until 

 paid for, and agree to ship honey to pay for them, or pay 

 the cash by the time the first shipment is made. This en- 

 ables us to" deliver the cans direct from the car, and so save 

 all cost of storage, and has been found to be effective 

 against loss. 



M.-^RKETING THE HOXEY. 



On the question of marketing honey, there will be dif- 

 ferences of opinion as to the best plan, and no set rule can 

 be laid down, but conditions and circumstances must be 

 taken into consideration, and good business judgment be 

 used. Some believe iu selling only for cash, or its equiva- 

 lent—on sight draft— at the point of shipping. Others be- 

 lieve that more money will be realized where shipments are 

 made to reliable commission firms on consignment. Per- 

 sonally, I am of the opinion that this latter is the best plan, 

 g-enerall}'. There are times when as much can be realize* 

 by cash sales, but in general it may be said, I think, that 

 under existing conditions more can be realized by selling 

 on commission. In decidingthis question we must consider 

 not only present profit, but a market for future crops. One 

 thing must be arranged for, no matter what may be the 

 plan of selling, namely, to manage that all shippers shall 

 receive the same amount per pound for honey shipt about 

 the same time. I sometimes ship several cars at or about 

 the same time, some of which sell more quickly than others, 

 and some perhaps sell for more per pound than others. In 

 this case, the first money received is paid prorata to all 

 shippers, and when all returns are in, the average net price 

 per pound is found and settlement is made on that basis. 



Each shipper's honej' is markt by having his initials 

 on each case, and as each lot is weighed separately, each 

 one gets paid for just what he ships. 



As my paper is already longer than I expected to make 

 it, I will close. The opinions set forth are drawn from an 

 experience of several years in an association of bee-keepers 

 here (in Arizona), and I trust that the ideas here brought 

 before you may be of some value to our fellow bee-keepers 

 in some places where the conditions are right for co-oper- : 

 ated action among honey-producers. 



J. Webster Johnson. 



[Continued next week.] 



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