The organization consists of a central exchange, which is the marketing

concern, sixteen district exchanges and 104 local associations. The

locals elect the directors of the district exchanges, which in turn elect

the directors of the central body. The fruit is gathered and packed by

the local associations, which are independent units and usually own their

packing houses. It is shipped through the district exchange. The routing

and sale is in the hands of the central exchange.

It is worthy of especial note that the California Fruit Growers’ Exchange

has succeeded by the merit of its business methods. It does not now and

it never has had a monopoly of the California crop. It began with less

than a third of the crop, and for some years handled less than half of

it. It now ships about 75 per cent of the oranges and lemons grown in the

state.

It should also be stated in this connection that there are a large number

of men in the business of growing fruit in California, who have had

extensive business experience before becoming tillers of the soil. They

were not afraid to unite, not afraid to adopt modern business methods,

not afraid to pay large salaries for the skill necessary to succeed. I

understand that the manager’s salary is upward of $10,000 a year.

Viewed in the large, the coöperative movement in America is making rapid

strides. It is handicapped by lack of knowledge of coöperative methods,

and by lack of adequate laws governing the organization and conduct of

societies.

The most crying need is a more widespread knowledge among coöperators

themselves of the true principles of coöperation. There are hundreds of

so-called societies in which coöperation is by the many for the benefit

of the few. In some instances they are actually controlled by the

concerns which buy their products; in many more an excessive profit is

secured by a small coterie, usually in the form of dividends on stock.

Stock dividends are the rock on which many promising coöperative efforts

come to grief. It has been customary in many states to organize under the

corporation laws, the members taking stock. Where no restrictions are

placed upon the number of shares which one person may hold, or upon the

dividends that may be paid, the tendency is for the stock to concentrate

in a few hands, when dividends on stock are likely to be more sought than

profits for members. I know of instances where so-called coöperative

enterprises have paid as high as thirty per cent per annum in dividends

to a small ring of stockholders.

A CALL FOR CONSTRUCTIVE STATESMANSHIP.

Where special statutes are enacted providing for the formation of

coöperative societies, there is often a lack of wise restrictions in the

interests of the average member. The laws are sometimes excellent in what

they permit coöperators to do but inadequate in what they require them to

do. The enactment of laws adequately fostering coöperative enterprises

and safeguarding the interests of the coöperators calls for the best

constructive statesmanship of the Nation.

Among the provisions that should be inserted in every state law

authorizing the formation of coöperative associations are the following:

That no person shall hold more than a stated number of shares

of a stated aggregate value.

That dividends on stock shall be limited to a fair interest

return.

That all profits, in excess of interest on capital and such

reserve as is deemed necessary, shall be distributed equitably

among members in accordance with business done or work

performed.

That an annual report be made to the Secretary of State showing

the nominal and paid-up capital, the assets and liabilities,

the dividends paid on stock, the profits and how they are

distributed.

That the word “coöperative” shall be made a part of the name

of any concern licensed to do business under the provisions of

this act.

That all concerns doing business in the state at time of this

enactment which use the word “coöperative” in their titles

shall be required to reorganize under this act or change their

name.

A great stride forward will have been made when in every state of the

Union there are laws requiring the equitable distribution of the profits

of coöperative endeavor, control of societies by members, publicity of

all important acts, and confining the use of the word “Coöperative” to

concerns that meet these requirements.

Good laws alone will not solve the problem. Some associations are

eminently successful under the ordinary corporation laws, some will fail

under any legal system that can be devised. The successful conduct of a

coöperative society requires intelligence, business capacity and honesty.

I know of no plan of coöperation that is “fool proof” nor do I know of

any legal safeguards that will render it safe from those whose methods

are of the dark lantern and the jimmy.

WHAT A COÖPERATIVE SOCIETY IS NOT.

The coöperative society in its best sense is not a revolt against

oppression or unjust exactions. It is a business system. Its purpose is

the promotion of the three big “Es”: economy, efficiency and elimination

of waste.

Coöperation is not a cure-all; it will not solve every problem; it will

not solve any problem unless it is handled properly and wisely.

Successful coöperation does not mean monopoly. Few attempts by

coöperators to monopolize their product have been successful; I know of

none that have been successful for an extended period.

Coöperation is not communism. It does not mean collective ownership of

property, but collective activity by individual owners of property.

A coöperative society resembles a corporation in that the capital and

services of a number of persons are united for the purpose of carrying

on a business. It differs from the corporation in two very important

particulars as follows: First, the recruit in a coöperative enterprise

is the man and not the dollar; second, the purpose of the coöperative

society is not to build a profitable business, but to add to the profit

of the individual businesses of its members.

CAUSES OF FAILURE.

Failures in coöperative enterprises have usually been due to too much

confidence and too little actual knowledge of the business undertaken.

Men engaged in production have undertaken the business of distribution on

a large scale without any previous knowledge of distributive methods. In

many cases coöperators have expected too much and have been dissatisfied

with moderate returns; in others there have been no returns because

the business was neither well conceived nor well conducted. In many

instances success at the outset has led to unwarranted expansion that

spelled disaster. Personal likes and dislikes and petty jealousies have

led to disruption; a good manager has been discharged to make room for

a favorite of a dominant faction, or a poor manager has been retained

because the membership did not know he was a failure. There is a strong

tendency among coöperators to resent high salaries, and low grade

managers are often the result. Members are frequently disloyal and weaken

the society by doing a portion or all of their business with its rivals.

Members of marketing associations frequently coöperate as some men

pray—only in times of impending disaster.

A coöperative enterprise, to be successful, must be one for which there

is a place and an opportunity. Sound business judgment must characterize

its management. There must be a responsible head and a definite policy.

The manager must be capable and experienced and the one test of his

work must be the results he is able to show. There must be a system of

accounting that will show these results in detail. Dependence for success

must be upon the merits of the methods employed, never upon the mere

right of coöperators to do their own business in their own way. Most

important of all, the membership must be intelligent and willing, on

occasion, to suffer temporary loss for the greater gain to be secured

by loyalty to the concern. It must be borne in mind that a coöperative

enterprise in entering a competitive field has got to compete, and its

strength lies in the loyalty of its membership.

SHOULD BE TAUGHT IN THE SCHOOLS.

The American people need to be educated regarding the principle and

practice of coöperation. It should be taught in the schools, especially

in the agricultural schools, as it is now in some of the agricultural

schools of Europe. There should be state and national conventions for

the discussion of coöperative principles and methods. There should be

organizations of coöperators for the consideration of mutual problems and

mutual interests. Every great library contains the history of all of the

coöperative movements down to the present time, and the experience of the

world is available to those who will use it.

What Americans most need is the coöperative point of view. We are

accustomed to extravagance and speculation, but the time is at hand

when we must practice the virtues of economy. We have been a nation of

individualists, each sufficient unto himself; we must learn to unite with

our fellows and consider their welfare as a part of our own.

Do we need coöperation? Consider the wide margin between the price on the

farm and at the kitchen door! Consider the difference in cost between the

boot at the factory and on your foot! Consider the enormous wastes and

duplications of our system of distribution! Consider the fortunes that

have been amassed by the concentration of profits that would have been

widely diffused under coöperation!

We complain of the concentration of capital in the hands of a few; here

is a system of business that will keep the profits of the people’s

business in the people’s pockets where they belong.

We are concerned about the resources of Alaska lest they pass into

the control of trusts and syndicates and serve to enrich a few at the

expense of the many, as well we may be; but here is a wealth more vast,

a tangible, visible, present wealth, many times greater than that of

all the mines and forests of the Territory of Alaska, that is slipping

through our fingers day by day and accumulating in the coffers of those

who already have too much. The American citizen everywhere is paying a

tribute from which there is but one avenue of escape—the adoption of

coöperative methods of doing business.

During the reading of Mr. Beard’s paper Mr. J. B. White assumed the Chair.

Chairman WHITE—Mr. B. A. Fowler, chairman of the resolution committee,

desires to make an announcement.

Mr. FOWLER—Members of the resolutions committee having been selected,

the first meeting of the committee will now be held, and I invite the

members selected for that committee to meet in the room back of the

platform. This meeting will be for the organization of the committee,

and I suggest to the chairman that if nothing has been said on that

particular point, this a working committee, and you get results. Those of

you who have resolutions to present should present them at the earliest

possible moment. I will leave to you the lateness of the hour when they

may be presented, but it would seem as if they all ought to come in to

the committee some time today. I also suggest that anybody who desires to

present a resolution should not send it up to the committee unsigned,

and in the crudest sort of way; but that you prepare your resolution as

you would like to have it presented, sign your name and send it to the

committee.

President WALLACE—If I were the chairman of the committee I would not

consider any resolution offered after this evening. It is unfair to the

committee to throw resolutions at them at the last moment. Now, we must

have a report of this committee the first thing after dinner tomorrow.

Therefore, get your resolutions in.

We want the members of the committee on resolutions to go up to this room

at once.

Gentlemen, we will now hear an address from Mr. Herbert Quick, of

Madison, Wisconsin, editor of the Farm and Fireside of Springfield,

Mass., on the subject, “The Farmer and the Railroads.”

Mr. HERBERT QUICK—Ladies and Gentlemen of the Congress: It is rather a

difficult task which has been assigned to me, that of following such men

as have spoken in the last two or three addresses, and that, too, at

a time of day when the imperative calls of bodily sustenance begin to

make themselves manifest. I cannot undertake to emulate in the matter of

interest, in the matter of inspiration, any of these gentlemen who have

just preceded me and addressed you. It is utterly impossible to be very

interesting with reference to the subject of the railroads and the farmer

unless you trench on the subject of politics, and they are barred here;

therefore, ladies and gentlemen, I beg leave to be dull in my talk to you

today, very dull indeed. I am, however, hopeful of giving you something

to think about with reference to the very important matters of the

relation between the railroad and the farmer.

The relations between the farmers and the railroads are not always

amicable, but they are always close. When capital was first solicited

for the building of our railways the capital that responded was in large

measure that of the farmers. Enterprise came from the cities, but before

it could successfully appeal to the bond market, it was obliged to show

something in the way of local aid. The history of railway exploitation

in the Mississippi Valley, and in the whole country at the period of

most rapid development in railway building has not yet, so far as I am

aware, been adequately written. When it is written, it will show an

astonishing array of facts relating to the extent to which the farmers

of the land really built the railways—by stock subscriptions, by votes

of aid, by donations of right-of-way, and by outright gifts of cash. And

a depressing phase of the story will be the tales of bonds issued and

upheld by the courts, although no railway was ever built, and of the

almost automatic manner in which the farmer’s interests were closed out

by receiverships. During the time when investments in railway buildings

were uncertain, donations of public lands, gifts of rights-of-way, and

votes of bond issues in the way of local aid gave them standing in the

money markets. So to a great extent, the farmers built the railways—and

were then neatly beaten out of their interests.

That, however, is not the story of the farmers of today and the railways

of today. It belongs to the past. Our task relates to the future. In that

future, the relations between the railways and the farmers must continue

to be close, whether they are amicable or not. The two parties belong to

each other. One cannot exist without the other. When the farmers succeed

in wresting a good crop from the earth, stocks go up in Wall street.

A hot wind in Montana affects Great Northern and Northern Pacific on

’Change; and when the railway fails to furnish cars for the carrying

of the crop, that failure affects the notes of the farmer at the bank.

For better or for worse, the farmers and the railways are irrevocably

wedded. A little careful and dispassionate consideration of their marital

relations may assist in the maintenance of that peace which is necessary

to happiness—and as a mere outline of the broader principles governing

such consideration, this address has been prepared.

The great railway men of the United States have always felt the burden of

a duty towards the farmers, even when denying any legal claim back of it.

Fifteen years or so ago an enthusiastic believer in the semi-arid West

worked out a plan for moisture-conserving farming—one of the greatest

steps in conservation ever taken in this country. The management of the

Northern Pacific helped him educate the farmers in the principles of his

science. The managements of the Chicago, Milwaukee and St. Paul, the Soo

Line and the B. & M. in Nebraska also gave him assistance. They foresaw

the development which would come to Montana, Nebraska, the Dakotas and

all the semi-arid country if “dry farming”, as it has come to be called,

could be made to succeed. They saw a duty to the stockholders—saw it

clearly; and I believe there was not lacking to their vision a glimpse of

the duty they owed to the Nation through ministration to the prosperity

of its farmers.

HOW THE RAILROADS LEARNED.

The management of the Great Northern, though since enthusiastic, could at

that early time see nothing in the Campbell method of farming to enlist

its sympathy or its dollars, nor could the Northwestern line, though

both of these systems ran through hundreds of miles since reduced to the

settled state through dry farming. But at that very time Mr. Hill was

showing his interest in agriculture through the introduction of improved

breeds of livestock along the lines of his system. And the Northwestern

officials withheld their aid from Campbell, because it was believed on

their part that it was better to leave the semi-arid regions in the

condition of unbroken prairie from which they might receive trainloads of

cattle, than to encourage its opening to an agriculture which was likely

to be unsuccessful. Perhaps that was the controlling opinion in Great

Northern circles, too. In any case, the railways were exerting an almost

monarchical power over farming in their spheres of influence. Nothing, it

seems to me, more clearly shows the power of the railways over farms and

farming, than these instances of both action and inaction at the critical

stage of development. We do not see it so plainly in regions long settled

and in agricultural equilibrium, but the power is always there and always

exerted for all that.

Beginning, so far as I am informed, with Mr. Hill’s livestock activities,

and the aid of Mr. J. W. Kendrick to the great dry farming movement,

railway aid to agriculture has grown to a fashion. The Pennsylvania

maintains its demonstration farms on Long Island; the New York Central

strives to bring back to their old-time headship in farming the Empire

State’s half-abandoned farms. Scarcely a railway system can be mentioned

which has not run its educational trains for the purpose of bringing

agricultural science into touch with the farmers along its line.

“Dairy specials,” “corn specials,” “bacon specials,” “fruit specials,”

and dozens of other special trains have moved leisurely from station

to station with agricultural lecturers aboard and cars fitted up as

laboratories and auditoriums for the farmers. These are sure to be

increasingly frequent as the demand grows on the part of farmers for

accurate and authoritative teaching, and as the railway officials come

to understand that the most profitable thing to sow along the line is

knowledge, and that nothing gives such profitable crops as science. The

great Burlington system now hires one of the noted agricultural experts

of the world to work with the farmers, and another eminent agricultural

college professor has gone into the service of that system which, while

it may not reign, rules over the industrial destinies of “The Rock Island

States of America.” The railroads everywhere, are doing excellent work

in educating the farmers. This work is wise, and is sure to bring the

results the railroads desire. The introduction of good agricultural

methods, like the implanting of truth in any form, is one of those

germinal acts that go on of their own accord when once the initial

impulse is given. Dry farming will be practiced centuries hence better

than now, and the Northern Pacific will carry its tonnage.

THE DOMINANCE OF TONNAGE.

But all these fine things have been done and are still being done with

a eye single to tonnage. The railway officials who are doing them would

strenuously deny any other motive than that of filling trains with

agricultural produce. “What justification,” says the old-fashioned

stockholder at the annual meeting, “can be given for using money of the

railway for such new-fangled flub-dub as this special train filled with

college professors and farmers?” “It’s a cold business proposition,” says

the general manager. “If we can get the farmers to grow steers that will

weigh a ton as against the present ones that weigh a thousand pounds,

our livestock tonnage is doubled, and at the expense of a few special

trains and an agricultural department, we obtain on the present lines all

the results of a greater mileage. Better agriculture means more freight.

That’s the justification, and the only one. It’s a plain business

proposition!”

We may trust the enlightened selfishness of good business to push this

sort of activity to the limit of its profit; and it is a fine thing to

think that the railways cannot benefit themselves by spreading the light

of agricultural science without benefiting the farmers and the whole

nation. Favors of this sort bless him that receives quite as much as

him that gives. But does the duty of the railway end with tonnage? Can

we ask the railways to do anything for the farms and the farmers beyond

the things which mediately or immediately will fill trains of cars with

profitable freight? In the great task of conservation do the railways owe

any duty to the farms beyond what they are now performing? This phase of

the subject has yet to be worked out.

SOME HISTORIC PHRASES.

A few striking phrases have thrown on the screen of history the views of

the generation of railway men who denied, and some of them still deny,

anything in the way of duty of the sort hinted at. Some of these may

be apocryphal utterances, but they tell the truth for all that. It is

recorded that a Louisville & Nashville official, on being asked whether

or not the people on his lines had any alternative other than to pay

what the railway exacted, answered, “Yes! They can walk!” The historic

Vanderbilt aphorism is “The public be damned!” It has been related of

Jay Gould that his cynical rule for the making of rates on agricultural

produce was that the farmers should always be allowed to retain enough

for seed. Such opinions as these were the prevailing ones until recently.

They were based on the view that the railways were purely private things.

Under their sway railway men claimed the right to decide what cities

should flourish and what decline, where towns should be built and where

not, what shippers should be prosperous and what fail. They claimed

these rights and they exercised them. To men of that school the things I

shall say will seem like nonsense. They do not see that the control of

the highways of a nation carries with it the rulership of the people; or

if they do see it, they refuse to recognize the right of the people to

say how that rulership shall be exercised, how long it shall continue,

and when it shall end. And this is the lesson of the present and the

immediate future for the railroads of America. A railway official is

of right a public official, and he is nothing else. His duties to his

stockholders are important and call upon him for scrupulous fidelity,

but they are subject to his duties to the public. For on the highways

depend the welfare of the whole people; the stockholders are a part only

of the people; and the whole is greater than any part. In the last

analysis, the stockholders and bondholders of the railways must come to

a realization of the fact that they have placed their interests in the

keeping of the people of the Nation, and that their profits must depend

on the sense of justice of that people. Fortunately, there is no reason

to expect from the people the slightest failure to respect the real

rights of capital. But that modifications of railway policy are likely to

be insisted upon, is not only likely, but inevitable. These modifications

will be along the line of revisions of rates, the adoption of the

principle that the railway must be used as a tool in the development of

the Nation along rational and just lines, and not arbitrary ones, and in

the conservation of the national resources—among which one of the most

important, if not the most important, is the fertility of the soil.

RATES AND LIVING COST.

Proceedings of the third National Conservation Congress at Kansas City, Missouri, September 25, 26 and 27, 1911 · 第 12 / 45 段