CO-OPERATION

IN THE

UNITED STATES

Based on Official Sources

223

Designed as a Text Book on Co-operation
for Farmers, Bankers, Students,
Editors and others

MAIN LIBRARY AGRICULTURE DEPT.

97c

SUBJECT INDEX

STATEMENT OF THE CASE:

Co-operation in the United States has been tried in all its forms for more than
one hundred years. It has been tried under favorable conditions. It has had
special legal privileges and favors. Certain principles of co-operation
have been proved sound. Certain of its principles have been proved
unsound. Many laws (possibly too many laws) have been enacted
aiming to promote co-operation.

Advantages of co-operation, where it works and why. Examples of sound
principles.

Disadvantages of co-operation, where it fails and why.

Examples of unsound

(1) Typical co-operatives that are more than 10 years old---16
The East-potato, cranberry

-16-20

588210

-61-63

63-70

Page

Sec. 10. Laws on Co-operation.

__70

Federal laws

--71-73

State laws. Early laws. "Standard Marketing Act”-----73-78

UNIV. OF
CALIFORNIA

1. HISTORY OF AMERICAN CO-OPERATION

Introductory Statement.-Many millions of dollars have been spent by farmers in experiments with co-operation. These experiments by their successes and their failures have clearly demonstrated what principles of co-operation will work and what principles will not work. This booklet sets forth in condensed form the significant facts concerning our actual experience with co-operation in all its forms. Since co-operative marketing is the form of co-operation now receiving the maximum of attention, this form is here considered at greatest length. The other five forms are sketched briefly. But they must be mentioned in passing, because they have played and do play a big part in the co-operative movement.

Earliest
Form

Live Stock
Marketing

Hundred
Years Ago

SECTION 1.

Earliest Forms of Co-operation.

Co-operation in its simpler forms has always played an important part among our farmers, particularly the settlers on the frontier. Before they became prosperous and self-sufficient, they had to help one another, to co-operate. The earliest form of cooperative marketing was developed about one hundred and fifty years ago, and took the form of what is now called a "livestock shipping association." But it was not so designated then. The problem of every new country is to find a staple product with a ready market. The staple product of the pioneer settlers was livestock: the market was distant; transportation was on foot by trails and bad roads. Hence the first co-operative marketing enterprises took the form of driving big droves of hogs and cattle to the distant city markets. This was a success. The farmers performed a service for themselves which no other agency was performing.

The volume and importance of this business may be gauged by the following figures from a farm paper published in 1825: "The following is the amount of livestock which passed the Cumberland Ford in the year 1824, for an Eastern market:

"Besides the above, a considerable number of droves are said to have gone the Kenawha route."

(Ref. American Farmer, Baltimore, April 22, 1825, p. 39).

Here is a case where 105 droves of hogs, averaging 552 hogs to a drove, were marketed co-operatively one hundred years ago. This practice had been in operation for some fifty years at that time. It continued in successful operation until other agencies were provided, such as near-by markets and better roads, and finally railroads.