152 Cooperation in Agriculture 



The speculators in California attempted to eliminate 

 competition in the early stages of the citrus industry ; 

 the line-elevator companies, assisted by the railroads, 

 accomplished this end in the grain business ; the apple and 

 peach buyers by mutual agreement have frequently done 

 the same thing in these industries. Unless the coopera- 

 tive creamery associations federate into a more efficient 

 business organization, the dairy industry will gradually 

 pass into the hands of the corporations that are formed 

 to make the largest possible profit out of the products of 

 the dairyman. 



A Cooperative Dairy Federation in Minnesota 



An effort is being made in Minnesota through the Minne- 

 sota Cooperative Dairies Association to distribute and 

 sell the product of creameries on the cooperative plan. 

 A corporation was formed in 1907 by seven local coopera- 

 tive creamery associations. The association was organized 

 with a capital stock of $12,500, divided into five hundred 

 shares. The stock cannot be sold by a member without 

 first giving the association the first option to purchase, 

 and a stockholder has but one vote at any stockholders' 

 meeting. The purpose of the association is to receive, 

 sell, and otherwise dispose of all products of any individual 

 manufacturing or agricultural cooperative association. It 

 charges five per cent on the gross sales and from the 

 revenues derived in this manner each month pays the 

 cost of operation, charging to each member his pro rata 

 share of the cost. The association retains one mill per 

 pound on each pound of butter sold to be held as a re- 

 serve or for other purposes, and prorates the balance 



