COOPERATIVE PURCHASING AND MARKETING ORGANIZATIONS. 29 



communities during the last few years, and if it were not for this fact 

 more elevators might be handling this side line. 



The handling of lumber was given as a side "line by 80 elevators. 

 Of this number Iowa reported 33, Nebraska 13, and Illinois 10. The 

 much smaller number of elevators handling lumber than fuel is 

 accounted for largely by the fact that the carrying of lumber as a 

 side line requires a greater outlay of capital and also takes up more 

 of the manager's time than does the handling of fuel. It is not neces- 

 sary to keep a very large supply of fuel on hand, while a considerable 

 stock of lumber is required in order to have a supply of the various 

 grades and kinds that are likely to be called for. One elevator re- 

 ports having handled $75,000 worth of lumber in one year, showing that 

 in some cases lumber is an important item in the elevator business. 



Kansas has 12 of the 28 elevators reporting the handling of fruit 

 and produce. Of the 16 elevators handling merchandise, 6 are in 

 Kansas and 3 in Montana; 640 elevators report the handling of mis- 

 cellaneous products and supplies. In this class are included elevators 

 handling such materials as binding twine, fence wire and posts, 

 cement, oil, and miscellaneous items. 



Members. — In Table II it is shown that 149,618 farmers compose 

 the membership of 1,471 elevator and warehouse companies, an 

 average of 102 for each company. Using this average as a basis, it 

 is estimated that the 1,637 concerns covered by this report represent 

 approximately 166,974 grain farmers, all of which directly benefit by 

 the organizations of which they are members. A great many farm- 

 ers who are not members but who ship their grain through the farm- 

 ers' company derive benefits from it. Among such benefits would 

 be the nonmember dividend where paid, and the advantage to all 

 farmers in the community if the company in any way secures better 

 prices for the farmers than were paid them before its organization. 

 Such conditions as these exist in communities where, previous to the 

 establishment of the farmers' company, no competition of any extent 

 prevailed in the purchase of grain. From reports received as to the 

 number of nonmembers who ship through farmers' companies, it is 

 estimated that at least 125,000 who are not members market their 

 grain through the 1,637 elevators covered in this survey. This 

 number, plus the number of members, brings the total number of 

 farmers doing business with these concerns to approximately 289,000. 



New companies. — New companies are being formed constantly. 

 No accurate record of the number has been kept from year to year 

 but from such information as is available at this time it is estimated 

 that several' hundred companies were formed during 1914. Not all 

 of these reached the point of doing business, because of trouble in 

 securing capital or some other difficulty. 



