Q»e RURAL NEW-YORKER 
743 
Prize Plans 
A Detailed League Plan 
BUILDING FROM THE BOTTOM.—It seems 
clear to all well-posted dairymen that any plan 
tending to the marketing and manufacturing of the 
milk of all the members of the Dairymen’s League 
must he based on co-operation. It is further clear 
that the ownership and voting control of any such 
organization must he vested absolutely in the mem¬ 
bership. To my mind, the true meaning and method 
of application of real co-operation is little understood 
among Eastern dairymen, and that to insure the suc¬ 
cess of any co-operative organization among them the 
plan must begin at the farmers' end. and build from 
that foundation upwards to completion. In order to 
insure the lasting confidence and interest of the 
dairymen in the organization, the ownership and 
management of the local shipping stations and of the 
regional plants must he in the hands of the members 
(local) or associations (regional) supplying them. 
The present League should and must build the new 
organization from the bottom up, rather than from 
the top down, as it seems to be trying to do at pres¬ 
ent. It is not my purpose to criticize the present plan 
of the League, but rather to offer a plan of organi¬ 
zation that will retain the good features of the 
League plan and do away with its faults, as I see 
them. 
THE BASE OF THE PLAN.—In general, the plan 
is based on the legislation passed by the 191S New 
York State Legislature, the act being known as Ar¬ 
ticle 13-A of the Membership Corporation Law; 
which act provides for the organization of co-opera¬ 
tive marketing associations and buying associations, 
to market agricultural, dairy and horticultural pro¬ 
ducts and to buy all farm supplies. In conjunction 
with this act the penal law was amended to allow 
collective bargaining by farmers, without being ham¬ 
pered by the anti-trust laws. The plan that I offer 
is rough. There are some details that need greater 
minds than mine to smooth out and fit in their proper 
place; but the plan seems to me to be every bit as 
clear and finished as is the plan offered by the 
League. I submit the plan below: 
PRELIMINARY SURVEY,—There must first be a 
survey made of the League territory, taken by the 
present League, to determine: 
(a) The number of cows in each local branch and 
in the whole territory. 
(h) The approximate yearly production of milk 
in each local branch and in the whole territory. 
(c) The location of shipping stations needed for 
the new organization, including elimination of un¬ 
necessary stations and combination of local branches 
where needed. 
(d) The location and number of regional manu¬ 
facturing plants needed. 
(e) The cost of the project to each local associa¬ 
tion (shipping station), to each regional association 
(manufacturing plant), to central association. 
LOCAL ORGANIZATIONS.—Second will be the 
organization of local co-operative associations in 
each local branch of the League (or combined 
branches). These associations are made up of the 
local dairymen, and are organized for the following 
purposes: 
(a) To own local shipping station. 
(b) To become members of a regional co-opera¬ 
tive association and own a share in it. 
(c) To raise money to buy or build local shipping 
station and 
(d) To raise money to pay for a share in the 
regional plant. 
(e) To buy and sell farm produce and supplies 
for its members. Third will come the organization 
of regional co-operative associations composed of the 
local co-operative associations in its territory, for 
the following purposes: 
(a) To become members of the central co-opera¬ 
tive association. 
(b) To control the regional manufacturing plant 
(owned by the locals). 
(c) To co-ordinate the buying and selling of 
farm produce and supplies for its members (locals). 
Fourth will come the organization of a central co¬ 
operative association. This will be the executive 
head of the whole organization. It will direct the 
shipping stations and regional manufacturing plants 
as to where and how milk is to he shipped, what 
kinds of manufactured products are to he made. etc. 
The control association will be the selling agent for 
all milk and milk products and will own all brands. 
FINANCING THE PROJECT.—So much for the 
general outline ef the plan. Now come the details. 
Financing the plan is hardly a detail, rather a major 
project, hut I will take it up here. The money is to 
be raised by loans, on what is known as the revolving 
loan plan. Each local will know from the survey 
about what it will cost to own its shipping station 
and about what its share in the regional plant will 
be. Each local may raise this amount as it sees fit: 
by requiring a loan from each member on a per cow 
basis or by interesting local capital, or any other 
way. Each local will be alone responsible for loans 
made to it. Each local’s share in the regional plant 
will include a certain amount to be used in financing 
the central association at the start. So much for 
the general method of raising the money at the start. 
Now for the method of paying each dairyman for his 
milk when the organization is in operation. 
RUNNING EXPENSES.—The central association 
will receive all money for the sale of milk and milk 
products. Out of this it will take the amount needed 
For Dairymen’s League 
It has been a difficult task to decide among the many 
excellent essays sent in competition for the prizes offered 
for best plans for the Dairymen’s League. After much 
thought and discussion the prizes have finally been 
awarded as follows: 
First Prize $100, George C. Porter, Upper Lisle, N. Y. Second 
du* m 5’ John Anderson, Morrisville, N. Y. Third Prize $15, 
P. H. Norberg, Bloomvilie, N. Y. The first and second prize articles 
ar ®, ? rlnted here. The third prize article and other excellent papers 
will be printed later. 
for. its running expenses. It will pro-rate the re¬ 
mainder among the regional associations, according 
to the amount of milk or manufactured produce that 
each regional or its local members have furnished. 
Each regional will take out of this amount the sum 
needed to cover its running expenses and will pro¬ 
rate the remainder to its local members according 
to the amount of milk that each lias furnished. Eacii 
local will pro-rate the amount received among the 
members according to the milk each has furnished, 
first taking out of each member’s amount the sums 
necessary to cover running expenses, interest on 
loans, depreciation on property owned and each 
member’s share of liquidation fund to pay off loans. 
Of course, in making these payments, freight rates, 
butter-fat, etc., will be considered. 
CONTRACTS AND MANAGEMENT.—Each indi¬ 
vidual member will make a written promise to the 
central association to give it control of his milk 
through the local and regional associations. Each 
individual dairyman will contract with his local 
association for the sale of his milk; the local will 
contract with the regional and the regional with the 
central. The promise given to the central associa¬ 
tion is to prevent any local or regional from with¬ 
drawing from the organization. The local and re¬ 
gional associations are to run their own stations or 
plants, hire managers, etc. It is my idea that the 
directors of all the organizations shall act as super¬ 
visors and give the final management into the hands 
of competent managers. This seems very important. 
SPECIAL ADVANTAGES.—The following are some 
of the advantages of the plan that occur to me. and 
I give them without comment: 
1. Leaves title to shipping stations in the hands 
of local associations, each their own station. 
2. Leaves title to the regional plants in the hands 
of local associations—members. 
3. Keeps the financial interest of the dairymen 
centered in homo property and protects him in case 
of a failure of the central association. 
4. Gives dairymen opportunity to buy and sell 
farm produce and supplies in a co-operative way. 
5. Puts a premium on efficient management of 
regional manufacturing plants and local shipping 
stations—the more efficient it is, the less will be the 
overhead costs and the less will be the assessment 
to the members. 
d. Begins the gigantic task of organization at 
the bottom and builds up step by step to a complete 
working organization. 
7. Gives a central control of the selling end. 
S. Gives a central control of the manufacturing 
end. 
9. Raises the money among the farmers to start 
with. (Financial interest is a lasting interest in any 
undertaking. 
10. Gives each dairyman the same price for bis 
milk (freight, butter-fat. etc., being considered) with 
one exception. Any saving in the overhead expense 
of any local shipping station or regional plant is 
kept within such association, thus placing a premium 
on efficient and economical management all along 
the line. 
11. Gives each dairyman an individual contract 
for the sale of his milk. 
12. Keeps the control of the whole organization 
in the hands of the dairymen. 
13. Provides for a survey of the territory to be 
covered, thus giving a definite basis to build on. 
14. Gives each association (central, regional or 
local) its share of the clerical work and gives each 
association only such work as pertains to its own 
members. 
15. Provides for the payment of all expenses and 
for repaying loans. 
10. Prevents the central association from becom¬ 
ing too strong. gkorge c. porter. 
Organized from the Ground Up 
A DOUBLE PLAN.—My plan is a double plan. 
The State or National organization should be a mem¬ 
bership organization in which all stockholders should 
be members; all other organizations should be stock 
organizations. 
PRODUCERS SHOULD OWN PLANTS.—To start 
with, the milk producers at every local station must 
organize to own and finance and operate their own 
business. It should eousist of milk producers only. 
They should elect from their own number, by ballot, 
five directors: one for one year, two for two years, 
two for three years. The term of office should be 
three years. These in turn should elect from their 
own number one president, one vice-president and 
one secretary-treasurer. These five so organized 
will be the board of directors for one year, and will 
reorganize after each annual election. The by-laws 
may also contain an officers’ recall clause, so as to 
he able to recall anyone who does not attend to his 
business. These officers should be paid a per diem 
for all time actually spent in the service of the or¬ 
ganization; also all reasonable expense. 
DUTIES OF OFFICERS.—These directors should 
have general charge of the organization’s business. 
They should hire a competent disinterested person 
as manager. This manager should carry out all de¬ 
tails of the business under supervision of the direc¬ 
tors. He should hire all help needed, receive and pay 
out all money, and have charge of all books and have 
them kept in such a manner that all transactions 
will show up to date. This manager must be under 
bonds and receive salary in accordance with his 
ability and the responsibility resting upon him. All 
the local organizations should be incorporated by a 
local name into which the name of the head organi¬ 
zation is incorporated, and should be financially in¬ 
dependent of each other. 
THE BOOKS should he audited by a licensed au¬ 
ditor twice each year. Each time after the books 
have been audited a stockholders’ meeting should be 
be called and. each time the auditor’s report should 
be published in the organization’s paper. 
THE FINANCING should be done by sale of 
shares in the local plants. In this must be included 
sufficient funds to pay the amount of stock required 
of each local to finance the regional. This money 
may be raised in any manner to suit the individual 
location, but as it is for mutual beuefit. each stock¬ 
holder should take shares according to the benefit 
he will derive. The money may be collected at a set 
per cent per 100 lbs. of milk and cease as soon as the 
subscribed amount shall have been paid. This share 
should be non-assessable: that is to say that the 
stockholder should not be liable beyond the amount 
subscribed, but in all eases the subscriber of stock on 
time basis should secure his stock by interest-bearing 
papers so that the amount may be realized for im¬ 
mediate use. 
FORMATION OF THE REGIONAL.—The regional 
plants should be centrally located. In locating them, 
railroad connections and freight rates should be con¬ 
sidered. As many locals as possible should unite in 
a regional so as to make the first cost as-light as 
possible on each- local. The stock in Hie regional 
should be held by one member of each local as 
trustee. This trustee should be elected by ballot of 
his organization, and shall east the votes of the en¬ 
tire number of his local organization, in accordance 
w fth instruction that his local organization may 
give him. The directors may be elected from among 
all of the stockholders within the regional district 
These directors shall be elected in the same manner 
as described for the locals, and shall be organized in 
the same manner, and with the same duties to the 
regional plant as described for the locals, and shall 
receive pay in the same manner. 
SELLING THE MILK.—The managers of this re¬ 
gional may direct any local manager to ship his milk 
direct from the locals to a dealer or distributing es¬ 
tablishment owned by this organization, whichever 
the case may be. and all surplus to be made up to 
whatever product that will be th4 best paying at the 
time. The proceeds of the whole to be equalized and 
shall be the basis of price of milk per 100 lbs., and 
after the running expenses of the regional plant 
shall have been taken out the balance shall be paid 
over to the locals, who shall take- out their running 
expenses and per cent for stock, and they shall in 
turn be paid to the producer. Payments should be 
made semi-monthly. 
THE STATE OR NATIONAL ORGANIZATION 
should be a membership organization and should be 
incorporated as such. To this end every member 
should pay an entrance fee. say $2 or $3. and the sec¬ 
retary should issue a membership card to each mem¬ 
ber and charter to every local organization. There 
should also be a small annual membership fee: this 
fee should pay a year’s subscription to the organi¬ 
zation s paper. These annual fees may be changed 
at any annual meeting so as to equal the require¬ 
ments of the head organization. These fees should 
be sufficient to pay the salary of the head officers 
and all reasonable expenses while in service of the 
organization, and also the expenses of the delegates to 
the annual convention. These fees will be the only 
money that will come into the hands of the head offi¬ 
cers. These officers shall be elected at the annual 
convention in the same manner as described for local 
and regional officers, and shall he elected from 
amongst all the members of the entire organization, 
aud shall organize themselves the same as the locals. 
DUTIES OF HEAD OFFICERS.—Their duty shall 
be of an advisory nature and they shall give their 
time to the organizing work, and to strengthening 
the organization, negotiate milk prices, to organize 
city wholesale branches for milk and other farm 
products. It should be one of the paramount prin¬ 
ciples of the head officers to bring the producer and 
consumer together without profiteering by middle¬ 
men. 
OTHER OO-OPERATTVE WORK.—This should 
include all farm products and supplies—not milk 
only. They should encourage organization of pur¬ 
chasing associations amongst the consumers, also es¬ 
tablishing a wholesale purchasing establishment to 
buy feed, fertilizers, farm machinery and other farm 
supplies. The treasurer of the head organization 
must be under bonds. The feed, farm supplies and 
farm produce can he handled by the locals with very 
little extra first cost and extra expense. This or¬ 
ganization ought to be organized in such a way that 
it will close the yawning chasm that for so long has 
swallowed the farmer's profit and has kept him a 
mere tool in the hands of the commercial class. 
JOHN ANDERSON. 
