?ABERSRIP RELATIONS OF TILE
WIER OOLUkLI3IA COOPERATIVE DAIRY ASSOCIATION
by
YREDERICK GORDON
YER
A TSIS
submitted to
OREGON STATE COTJE
in artja. fulfillment of
the requirements for the
degree of
MASTER OF SCLENCB
June 1950
APPROVED:
Redacted for Privacy
Professor of Department of Agricultural Economics
In Charge of Major
Redacted for Privacy
lead of Deiartment of Agricultural Economice
Redacted for Privacy
Chairman of Sohoo]. Graduate Committee
Redacted for Privacy
an of Graduate School
ILargaret Barber
AOXiOWLDGLr'NT
The writer expresses sincere thanks to Professor
. L. Potter, under whose euiervision this thesis was
prepared.
TABLE OF CON'2FSNS
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LOWBP cOLU3BIA QOWBRATIVE DAIRY ASSOCIATION .
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IWTRODUCTIOI!
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PROG.1JUflE 07 3URVEY
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IISTORY PRIOR TO THE
The Lawer Columbia Farmers' Creamery Company
Marketing of Proauots
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OoUeeting Cream
Grading Crown
Other Creamery Organizations
The Oregon Dairymen' a League
Effeeta of the Oregon Dairymens League
The Dairymen's Association
The Lower Columbia Dairymen's Association
TOY?
BsTA3L:
LOW1R OOlUMBXA -COOP
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13
14
15
TIVi DAIRY ASSOCIATION . . .
Bond Iscues
Earnings
Depreotat ion
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18
19
19
21
22
4
25
Cream Grading
lee Cream Plant
Powder Milk Plant
Feed Department
Expansion
YACTORT
ERATIONS OP THE
LOWER COLUMBIA COOPERATIVE DAIRY ASSOCIATION
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a
Astoria
P.rtlsad
Trade lame a
CURRP1T POLICIES OF THE
RAT IV1 DAIRY ASSOCIATION .
Operating Capital
Earnings
Grade A Milk Pool
OoU.at ton of Milk
Grading and Testing of Milk
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30
30
30
32
Grays River
Olatakanie
LOWER COLU)thIA CO
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Page
Coapetition
Directors
mploye as
Information Service
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0RATIVP DAIRY ASSOCIATION .
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Volume
Uub.rskip
3 01 QU3TI :AIBiiS AND I?TTRVIES tuTu
IR cOLU*B El CORATIVE J)AIRY SSOCIATI0N
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Msmbership; Kerd Size; Time of Shtpment
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63
68
70
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77
79
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Inorat ion Service
86
90
94
Members' Opinion of Services
Members' Resronsibilities
Association' a Superiority
laprovemant of Association
O0NOLU3I03
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BIBLIOGRAPHY :.
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54
Articles of Association and By-laws
Members' Partieiiation in Association
Revel
Fund
Marketing Contracts
Loans and Credit
Opinion Regarding Price
Milk Collection
Dirastors
Partieipation of Meetings
SUMMARY , ,
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100
102
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50
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MflkReaeints
aaaasaa .aa
AnnualSales
Margin Distributable Net
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Zqutt;
Redeerne
0ertiicates
Increase; Annual
Station Dumping Elk
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49
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31
29
26
23
20
16
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Meribership ota1
washer
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Cnn arni
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Certificate Milk
Certificate Milk
Certificate Peed
Certificate Feed
Back
Front
Back
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FXa71t
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Powder
i)riedL Testing
Shamrock Wrapping
Butter
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River Gray.
aasaa.,aae ?lat
OlatekaniaPlaiit
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Astoria
Office Central
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Area Columbia Lower
V1a
Area Columbia Lower in Farm Dairy
16 Figure
ligurel5
14 Figure
13 Figure
12 Figure
U Figure
10 Figure
9 Figure
8 Figure
Figure
6 Figure
5 Figure
Figure4
3 Figure
Figure
Figure
17
2
1
Pae
PIUR
RHI? LAPIO?S OF TIE
LOWVJR OL1JtBIA COOS' :K.TIV: DIhY AOULtk2IUN
INL'ROIflJCPION
Many of the studies on membership relations have been
in evaluating the mambership attitudes toward the current
operations of their 000ierattv.
Some work was done in reference to age of coopera-
tives in Ohio (9, p.23-26) in judging the former policies
of the Association with current policies and whether members were more or less satisfied with changes that had
occurred.
Similar stndies have been carried on in Iowa ('7) and
Jebi"aska (8).
Reasons for failures of farmers' cooperatives were
studied at Harvard University by R. W. )fi1ler and A. L.
Jensen who indicated that twenty per cent of cooperative
failures could be attributed, to mrnberahip relations (6,
p.214).
J. W. Jones gave much information on successful operation of cooperatives with regard to membership in a publication concerning membership relations (2).
i) L Hennigh made a study of membership relations of
the Dairy Cooperative Association in Portland, Oregon (1).
His study related to the current problems in
in view of grade A and factory producers.
Mush of the material which is available on cooperative membership relations relates to the duties of members
end the necessity for a suitable educational program.
Studies from the approach of membership problems,
which occur as an Association matures, could not be determined from a review of literature.
ew members join a cooporative which Is wellembershi
established, financially stable, and has a good reputation.
They receive benefits of the Association, without having
undergone the prior difficulties which older members encountered in the founding and growth of the Association.
As the Aaooiat1on matures the new members become
dominant In the affairs. The older members, who held the
Association together during difficult conditions, become
few. Problems in the membershiD will likely arise due to
a lask of understanding on the part of the new members,
concerning conditIons which existed when the Association
was established.
It is from this approach that a studs is made of the
ower Columbia Cooperativ Dairy Association.
The Lower Columbia Cooperative i)airy Lasociatton is
one of the successful dairy cooperatives in Oregon. in
its incorporation as a cooerative on April 17, 1922, it
has been built into an organization which in 1948 did a
e of business of over three million dollars.
Out of the difficult economlo conditions following
the First World War, when marlceting conditions for farm-
ers' milk and oream wore se,'re, the Association has established a stable market for its members.
Fr eapital sur'lied b th menbera, the net assets
have grown. to over one million dollars in 1948.
Al the Association grew, n'w mebrs joined and the
original members, oonoern wIth organizing and building
the Asaooiation through difficult times, became fewer.
hew members stepped into a financially stable Association
wbieh provided a ry mar)ct't fn, thoir produoton and
prodnoed quality products Vith the membership passing
from older to newer members, new problems in membership
relations appear likely to occur.
A study of the resent-day membership relations of
this Association, therefore, promises to throw significant
light en the broa1 roblern of how menthership relations may
be affaeted by the gradual replacement of founders and
charter members by newer and younger
tnbers.
OF SDRY
The ohange in the age of memboriijp and its effect on
present membership relations is the basis for this survey.
Membership relations concerns the attitude and
iowledge
hiah members have regarding their cooperative.
airy 000perativ
offer the best opPortunity for an
efficient atudy of ruernbersh.ji, relations as they are stable
in nature and continuous in operation, in selection of an
apz'oprjae dairy 000eratjye, attention must be given to
the suceese of operations, it is desirable to select an
Asecojation which is well-estab1jheu and roseoted.
Due regard must be given to personal ,robleLas within
the Association. It is desirable to survey the ombershtp
at an A$ojitjon which is not afflicted with serious internal problems of snantgPr:zent, financing, or of geeral
nature, in order to obtain an unbiased oin&on of the menbare.
The Lower OOlumbja Cooperatye :)airy Association
apnea2'ed desirable for the study of membership relations.
Rietoriosi data is given concerning the early organiattona in the Lower Oolumbia area. in order to effectively study membershi? relations under present conditiona, it is necessary to have an understanding of the
problems and economic conditions which were in force during the early periods.
Through a eoimnon economic need of marketing the
farmers' milk and cream, these organizations wore brought
together, forming the Lower Columbia Cooperative Dairy
Asoojat ion4
Th. development of the Association, its current pciisles and olperationa, provd a background for study of
present-day membership rlationa.
This membership stud; is generally conoernei with the
difference of opinions of wwbm who ship grade J milk,
factory milk., or cream. Secif1c attention is given to
membership attitudes which occur through the ohaxLge in
membership age. As the Association becomes flature, newer
members join and become dominant in affairs. he older
members, who earned tho burden or organizing and building
the Association through ts difficulties, are in the
minority. With such a oiange in ribershp occurring, now
end different memborahlo problems .re likely to arise.
A questionnaire was prepared and rnaile to each
ahip'üer who was a ieiiiber of the
uøjtjon as o June,
1949.
Names and addresses were obtained from the Assoola-
tion's current tiles
Personal interviews
WerE
he) d With
Pro7ima:tely ten
per cent of the ahitmrs, selectni to obtain a representative sample from each of tbe Association's thirteen
6
diatxjete.
Reaulta ot interviews and questionnaires are compiled
in tabula? formto give a clear conception o members'
attitude and knowledge.
Thie material is analyzed and a summary and conclu0
pi'eaented.
Figure 1: Dairy Farm in Lower Columbia Area
HISTORY PRIOR TO Ti
COOPERATIVE )AIRY A3SOOIATIOi
LOW12t CCLU)LBI.&
The Lower Columbia River Valley is a natural dairy
eetion having abundant rainfall and natural pastures.
The agriculture of this section is almost entirely dairying.
The marketing of dairy products in the beginning was
through privately-owned creameries.
Some of these were
owned by the farmers and were 000terative in policy.
The
largest of these was the Lower Columbia Farmers' Creamery
located at Mjtoria.
It was owned by farmers who were co-
operatively inclined.
The Lower Columbia_Yarmers'_Creamery Copany
The principle factor that led to the organization of
the Lower Columbia Farmers' Creamery Company in 1912 was
the feeling smong the farmers that the big creameries do-
ingbusineev in the community were paying below the market
It was tho' .t that through cooDera-
price for butterfat.
tion, batter prices could be obtained for the dairy products.
Seversi interested producers contacted other farmers
at their own expense to determine how many would join a
creamery aessoistion
be obtained,
and what volume of
It was found
quite willing to Join.
production could
that the farmers generally were
Production from about 1500 cows
was pledged, and 200 shares of stock were sold prior to
aroh 1, 1913, when the creamery began doing business.
The articles of incorporation were filed on April 27,
1912. Th. by-laws were adoted on June 25, 1912. The
Oresmery was organized as a stock corporation under the
corporation laws of Oregon. There was nothing stated in
the by-laws which prevented a member from voting by shares
instead of Individually, or was there any prescribed limit
to the nuber of shares that any member could hold. Ii
ever, by agreement among the members, only one vote was
allowed and a maximum of eight shares of stock could be
held by each member, It was the policy of the Company to
sell shares of stock only to producers of butterfat, although the by-laws did not prescribe who should be eligibi. fox membership.
The Ooany operated on a cooperative basis. The
price of butterfat was determinei at the end of the month,
after expenses had been deducted from the gross income.
During the first three years of business the Company paid
eight per cent on capita], stock and ten per cent during
1917 and 1918. A uniform rioe was paid for butterfat, no
sash patronage dividend being declared on the business
done with the Ooxmrnny.
The annual stoekholder& meeting was held on the
third Tuesday of June each year. At this meeting nine
to wholesale sold was Butter
Products. of Maiketing
members. the to dividend
total the increased
which share,
for share members, to
issued were stock common of shares Additional $20,000. to
tnoreased was capitalization authorized the 1918. of mar
the In ?.i0,000. at capitalized was Company The
sum
-
Year
atrons P
1918
191?
1916
1915
1914
1913
409
486
498
338
296
210
-
nter.
during not but months summer and sring the during
sold who 'oroduaers small included This year. oh
June of months the for shown is patrons of number The
1916. of end the by paid was This debt. in $4,500
was it 1913, March, in business doing began resry
the When $6,500. costing plant a erected and $5,500 tor
Astoria in lot a ourohased 0omaiy the 1912, July, In
month. each
of Tuesday seoond the on held wore meetings Directors'
secretary. and vice-president, president, were: elected
Officers paid. was comoensation other no but expense,
necessary actual for directors the by received was Vayment
year. one of term a for serve to elected were direotore
10
U
stores in Aøtoria and neighboring towns and logging oanps.
Surplus butter &uring th sta'ing and i:rner onths was
sold. in Portlanc, Tucou3, ani1 Jeatt,.
TIm
was aoU as j)rints an1 crtois, but
n difflcul
keted in ibes. Th:rc
quate markots for all o:C the rodot.
S
OcUeetin Cream.
output
us was marndtI13 4.dO
ThE area from which CTcaTIi was
lected. extended over a wHe territory. This included the
area in the ower Columbia rogion in Oregon and washington. Oream was shipped to Astoria by exnress, water, and
motor trucks. Collect to wero made not less than twice
It was
each week in summer and once each week in winter.
collected at railroad tationa or boat lant1ngs
shied to Astoria.
nci
cost o collection wa paid by
the oreeer exo.pt for a small amount hauled from south
eastern Clateop County. The eost was eighti cents to haul
a ten-gallon can o:f cream by truck from that section.
patrons paid. two thuds arid the creamery Daid one third of
the cost. The farmers tarnished their own cans, but those
could be purchased at cost through the creamery.
Orad1nç Creara. Only cue price was paid for cream in
one month. If a considerable quantity of bad cream was
obtained, it was churned separately, but no deduction was
made from the regular rioe. otifioation was made to the
roducer of such inferior cream with the suggestion that
Th
12
hi handle his product with greater care if he wished to
continue as a patron of the farmers' creamery. iasteurization of cream began in 1919, when machinery was installed for this purpose. A cold storage room was also
built at this time for cooling and storing butter.
aoh can of cream was tested. This test was shown on
a slip of paper which was placed in the can upon its re-
turn to the farmer.
The creamery refused to buy cream from farmers whose
cowS were known to have tuberculosis, and in that way en-
ocuraged farmers to get rid of tubercular cattle.
o special effort was made to solicit trade among the
farmers. Price oaid for butterfat was depended upon to
bring the business to the creamery.
Other Creamery Organizationa
Other cooneratire creamery or njzatlons were oper-
ating in the area during this time until 1919. At Grays
River, Washington, the Grays River Farmers' Creamery oer
ated as a marketing organization for the dairymen of the
Grays River Valley. At Astoria the whole milk dealers
marketed their milk through the Clatsop County Dairymen's
Association. This was a bargaining organization with a
cheese factory for the manufacture of surlus milic.
BPownmead, Oregon, a 000perative cheese factory
was
At
established for the dairymen of that region. In Catbiamet,
Washington, a number of creameries had been established
for tha dairymen, but all tailed due to a lack of volume
and friction. ,wo privately-owned creameries were located
in Astoria.
The Oregon Dairymen's League
During the war period of 1917-1918, this marketing
organization, the Oregon ])airyrnen's League, was developed
for the whol, milk area of Portland. This organization
attempted to increase the Drioe iaid the producers by controlling the raw prothiet through a oontraot. It was fod
that as soon as the original market area came under eon-
trol, the milk buyer extended his territory. in order to
effectively control the price of ilk, it became evident
that the whole state would have to be organized. This was
the basis for establishing the Oregon Dairymen's Lea
Zifeats of the Oren Dairyen'a League. In the
winter of 1920 and sring of 1921 the Oregon Dairymen's
Leagu. entered the Lower Columbia River district. It was
successful in signing the dairymen. At least eighty-five
per cent of the dairymen in that district signed the con-
tract. The Oregon Dairymen's League took over the lants
of the Lower Columbia 'armers' Creamery, the (ray8 River
Farmers' (iresniery, the Brownsrnoad C000erative Cheese
14
Pactory, and the Clatsop County Dairymen's Association.
Payments were made with the preferred stock of the League.
These factories were all ooerated. under a district manag-
er. The League suocceded in eliminating the small differencae that existed between these organizations and united
them.
It also atandardied the product.
By Setember, 1921, some dissatisfaction had develoed among the members. The depression of 1921 had ocaurred at the same time as the League began operations.
After perating for one and one-half years the League
failed.
The Dairymen's Association
This organization was develoned among members of the
Oregon Dairymen's League in the Lower Columbia River Val-
lay. The leeal communities sent delegates to a central
eoittee.
The purpose of the Dairymen's Association was
to eooerate with the cragon Dairymen's League for the
urpoee of improving conditions.
It was suggested that the districts be allowed to
nage their own affairs and sell the district's surplus
through the League's central office. This was refused.
By October, 191, the Dairymen's Association had become a
strong working unit1 receiving the SuDoort of businessmen and bankers. Conditions vithth the League were poor
rated.
incoro- was Association Iairyrnen's Columbia Lower the
out, worked were details After organizations. local bus
var the in stocks the for Association new the in stock of
exohange an by t'urohased were These properties. the for
formed. was Aasociation
League the wIth negotiated
It
Dairymen's Columbia Lower tho basis this On management1.
League's the under were which area Oolumbia Lower the in
plants combining organization district a form to decided
was it organizations, oommtmlty small to ox' orgsnisatione
riva to revert øroducts dairy the let than Rather
Association a (olunbiaDajnnen' owir
The
League. Dairymen's gon
Ore- the from withdraw to decided area Columbia Lower the
in leaders farm the affairs, its handle to right the trict
dis- the grant to resal the tfton refused. were these
but League, Dairymen's Oregon the of meeting directors'
a at made were demands of series a 1921, November, In
tracts.
con-
their violating
wore dairymen of number
large a aM
ft
.5 - I V 6
0 #V
AREA IN FARMLAND
MILKS HED ZONE
0
FACTORY LOCATION
C
'FE PRY
A
QRIA
0
6
01
CLA
,v
J
TI3LISiTT OF THE
LOWER COLU)ABIA COOP: J!flVE )AfliY A30CIATION
Beginning on !ovber 8, 1921, tMa Assouiation operated as a loose orgarization until ..pr.0 17, 1922, wAien it
was re-incorporated a a cooDer:.tive oraziization. Articles of Assoeiation
by-laws were amonded in 1922,
1923, and again in 1946, to 3cc the policies in accord
with changing conditions.
Originally the capital atook wa 5Q,0O0 of 5000
shares at 1O per aharG. In tri1, 1922, the amount was
decreased to 35,000 and In January, 1924, wzs increased
to e'75,000 of 7500 shares at .0 cr shari. A dividend of
eight per cent per year was a1 by the iooiation.
Baeis for vot
tab1J.hed on the basis of memberahip rather than on the number of shares owned. The
sale of capital stock was dIrect from the ssooiation to
the dairymen without any comriissoi
g aid to the person negotiating the 1e. The p1ic3 was to
e evu
shipper a stockholder.
In 1925, ths board of dIrotora !Jassed the notion
authorizing the deduction of ;.00 or month frou each
shipper then not a stockholder for
eriod of ten months,
in order to guarant' that all sb.ipoere. tould beoone
stockholders. Thoro were
dairymem who did not join
Voltarily, and in order to rotect the Association, this
.
18
seemed advisable.
The Association had the urlYilege of
repurohasing the stock of nonproducors at tsar anytime it
was offered for eale.
Stock could also be purchased from
members who moved from the area.
Bond Isarte.
did not purchase enough
The dairymen
stock to finance the natural eiansion of the organization.
To provide additional capital, bonds were issued.
In 1923, a bond issue of
25,OQO of seven per cant first-
lien bonds wer. sold locally and readily nurohased by individuals and banks.
The bonds "rovided for the amortiza-
tion of the issue by the
raynt of
These were coupon bonds,
ments.
annually.
ten yeaiy install-
interest iayable semi-
By 1925, the e.ansion of the organization re-
qnirad more capital.
The original Issue was
new issue of %6O,OOO was issued.
identical with the first, and
aid anc a
The second issue Was
rovtded that the bonds were
callable at par on any interest-bearing date.
By 1929,
the growth of the organization made it necessary to retire
the 1925 bonds and refinance with a new Issue of 1OO,OOO.
While bond issues irovided an Immediate means of finanoe,
the rapid amortizatIon aid the high interest rate required
that a large percentage of the earnings be used for this
purpose.
kfli7g5,
After bond payments were made, eight per
cent was paid the members on capital stock and the balance
19
placed in a surplus fund. This fund was operated as a
revolving fund. Certificates of equity a evidence of
ownership were issued to atrons in proort ion to the bu.siness which was done with the Lssooiation during the year.
it was the policy of the organization to add each month to
the surulne fund. The books were closed monthly. The
board of directors had before them at their monthly meeting the estimated revenue and cost of the month's business.
reoiati. The policy of the ssooiation was to
de,reciate the hysioal assets at a greater rate than the
natural depreciation. The deireciation figures used were
about twice the normal depreciation exoected.
am Gradg. Because of the cool nights, good
roads, and better transoortation, this area was ideal for
the production of quality dairy 'oroduots.
The Association, in 1923, established cream grades
and notified the members that in three months all cream
would be raded nd naid for on the basis of quality.
During these three months, throuph the cooperation of the
county agent and the U. 3. Department of riculture, a
campaign was made to educate th fi.rmers in the proper
methods of handling and delivering quality cream. The
state of Washington later adoyted the grades used by the
Association.
There was an in4ediate improvement in the quality of
Figure 3:
Central office, A8toria, Lower Colunibia Cooperative Dairy Association
21
the butte? iroduoed ihiah resulted in a higher net return
the Aesootation arid to the dairymen.
Ice Oream Plant. As the quality of the dairy prodnote had been troved and a maximum nrtoe realized on
quality butter, it was necessary to find some market which
would return a higher price to the dairymen. The possi.-
bilities of the ice cream Industry wore studied. At that
time the Ice cream industry of the Lower Columbia area was
oontralled by one Individual with a virtual monopoly on
all of the ice cream business in the state.
On Deeember 8, 1923, a fire destroyed all of the
business section of the city of Astoria, including all the
dairy 1ants with the exceition of the Lower Columbia Ccoperative Dairy Association which was a fireproof building. This gave an oportunity for the Association to es-
tablish itself in the ice cream business in the area.
A
building was constructed In Lay, 1924, for this purpose.
The same policy was adoted as in butter manufacture, that
of quality. The amount of dairy products used in ice
cream manufacture was relatively small oomDarod to the
total volume handled by the Association. This was suff I-
dent, however, to ray the dairymen an increased urice for
butterfat. The capital investment of the toe cream plant
was larger than that of a creamery manufacturing plant.
22
Proekist was the trade name for ice cream mnufaoturedL by
the Assootat ion.
The quality of Froakist ice cream manufactured and
sold in Astoria attracted the attention of ice cream dealers in Portland.
After roeated requests from Portland
dealers, the Asoo&ation investigated the possibilities of
expansion into that market.
In May, 1924, the Portland
plant began operations, but suptort from buyers did not
materialize as expected.
The sale at Froakist ice cream on the rortland market
reault.d in the improvement of all ice cream products sold
on that market, but the Association suffered a loss the
first year of 8OOO.
land plant was made.
Change in management in the Port-
Under the new management business
increased, which resulted in greater savings to the Association members.
The higher Dries returned. f or dairy
products marketed through ice cream permitted the Association to finance a rap Id exanaion.
Powdar Milk Plant.
One of the large items in the
manufacture of ice cream is semi-condensed milk or powder
milk.
As the volume of ice creaxn business grew it became
nooassai
to purchase larger and larger amounts of semi-
condensed or powder milk.
The oost was sixteen cents per
pound for the milk solids and these were Durohased from
competitors,
In 1927, oomoetitore offered to purchase the
rlANFN
0-OPERATIVE
Figure 4;
:
DAIRY ASS.
Clatskanie plant, Lower Columbia Cooperative Dairy Association
would
there that evident
became
It ieoartment.
Feed
manufactured.
were powder of pounds 700,000 &pproximately operation.
of year first the In previously. than less cent per five
twenty- for solids milk received deartment cream Ice the
and lost been bad than volume more regained Association
the plant, milk whole the establishing of result a As
43,0OO.
of cost a at Astoria at established, was plant a received,
information the u'oon Based Industry. milk powder the of
status economic the concerning made 'were Inquiries ton.
Washing- and California in plants manufacturing various
made were Studies plant. milk whole a establish to eary
nocea- was It milk, skimmed condensed for market a viding
pro- of and volume maintaining of necessity the With
competitors. to Association the
from butterfat of shift resulting a with dairymen many to
attractive was milk whole handling of convenience greater
The same. the nearly was times at price the although
milk, whole for paid was as butterfat for much as pay not
could seociation The shin. to desired dairymen the of
many which milk whole collect then could competitors The
niant. cream toe their with connection in Astoria in plant
condenser a established competitors the after, Shortly
refused. was offer The plant. cream ice Association's
24
25
be an overproduction in the powder market and that the
manufacturers would have to create their own markets in
order to obtain a favorable price.
It was thought advis-
able to develop a market for the powder in the form of
mixed poultri feeds.
Practically all of the grain used in
that area was ahippod from other areas.
To find a market
for milk powder and to help the roduoers in purchasing a
balanced grain ration already mixed, the Association expanded into the food market.
The Association was able to
deliver an eighteen per cent protein ration at about
per ton less than the prevailing price.
7
The feed depart-
nt offered an outlet for all of the surplus powder.
The
business volume the first year through the feed department
wag
21O,OOO.
ixansion.
On January 30, 1930, the Federal Farm
Board approved. an apolioatlon of the Association for a
loan of e202,000.
The loan was used in expanding the fac-
tories at Aatorta, Portland, Grays River and for construction of a new plant at Clatskante.
loan wore not to
exceed fifty
The advances on the
er cent of the appraised
value of the prooerties and were to be amortized over a
period of ten years.
As security, the Assoolation gave
the Farm Board a first mortgage on all of its physical
facilities.
This loan was later taken by the Spokane
Bank for Cooperatives.
Payments have been kept up to
--I COOPEKAflVE
iiiiuii
Figure
:
irnn:
II ii ii UI
UI II lull
II II
DAIRY ASS'N.
'U.'....
Grays River plant, Lower Columbia Cooperative Dairy Association
date.
In November, 1930, the new plant at Olatakanie was
opened. The cost of the building and equiment was about
80,000. On ooxnoletion and improvement of tho factory at
iver and the construction of the new plant at Olatskanie, operation of the creamery at Cathiamet was diseontinued. Milk which had formerly been shipped to Oathlamet
was shipped either to Grays River or to Clatakanie.
lollowing the construction of the new plant at ClatGrays
kanie, membere of the St. Helens Cooperative Creamery
Association, by unanimous ballot, voted to join the Lower
Oolmnbja Cooperative Dairy Association.
The merger was
accomplished by an exchange of stock, shareholders turning
in their stock and receiving a like number of shares in
the Lower 0olbia Cooperative Iairy Association.
In 1934, the former members of the St. Helens Cooperative Creamery Association decided to break away from the
Lower Columbia Cooperative airy Association. This was
done with an exchange of shares of stock on the basis of
equal value. All contracts for the sale of dairy products
were cancelled.
Poflowing the war there was a large growth in population in the Lower Columbia region and the portland area.
There was an increase in the demand for grade A milk.
During this ime little attention was given milk quotas of
28
the glade A producers. As grade A milk became more plen-
tiful, quotas were placed in effect. The war years made a
8t1'Ong market for dry milk solids non-fat, as well as
rocess drying plant
whole milk powder. In 1946, a s
in the Olatekanie factory was completed at a cost of about
$75,000.
The Association marketed surplus butter through
Challauge Cream and. Butter
ssooiation of California until
that time surplus butter has been marketed through 0onsolidate Dairy Products of Seattle.
1946.
Since
in October, 1946, the Lower Columbia Cooperative
Association began the distribution of grade IL milk
the Olatekanie, Cathiamet, and Siramokawa areas.
Figure 6:
Wrapping Shamrock butter, Clatskanie plant, Lower Columbia
Cooperative Dairy Association
PACTORY Q RATIUTS Oi
icria oo1uij. coor RIVi iIi'Y
TI{1
CIAflu1'I
The central office of the Assoolatlon is
located in Astoria. At the Astoria factory, production
oonstte of butter, ice cream mix, cottage cheese, and
some ice cream. racilities are available for D1'othlOtiofl
of dried powder, thoagh none is iroduced. The ice cream
mix is used in production of Froskist lee cream, m.nufaotured and distributed trinoially through the ortland
iant. Butter and cottage cheese are marketed under the
brand name of Shamrock.
The central feed det,artment Is located in Astoria.
d is bought and sold to purchasers at the cost of the
original ur'ehase plus grinding, mixing, and handling
At the end of the current year, any earn ingt
from the feed department are prorated to atrons as caah
patronage refunds or as revolving fund certificates. The
etoria feed department distributes feed to feed departments at Grays River and C]atskanie. Feed is distributed
by Association trucks.
charges.
Grays River.
The Grays River factory manufactures
butter, dried powder by roller rocess, and carries on a
email amount of grade A bottle milk trade. Feed is recalved from the Astoria feed department.
Olatakanie. Grade A milk is bottled and distributed
0
H
g
C)
'1
0
C+
H
0
-J.
02r
I-J.
C) 0
H
0
(b
1J.
C4.
u1
(D
O(D
Oco
32
through the Clatakanie plant. The now spray process is
used for producing dried powder from surplus milk. The
Association was the first to package and market dry milk
solids in paper bags and cartons. The whey from butter
production is uaed In oroducing milk solids. Butter is
aarketed locally and in the surrounding areas of the
Lower Oolabta region. xcesa roduction of butter is
rketed by the Consolidated Association in Seattle.
?ortland, The manufacture and distribution of 1ro8kist toe cream is the funetton of the Tort1and lant.
Trade Namea. The trade names of the dairy products
'oroduced by the Lower Columbia Cooperative Dairy Associa-
tion are:
Shamrock sweet cream butter
Shamrock eottaze cheese
$haniz'ock m.tIIc and cream
Froskist ice cream
Darigold rindless cheese
Darigold non-fat milk powder (sPray process)
Royal non-fat milk owder (roller process)
33
CURJi1T
OLICI]3 O' THJ
OWiR COLUAJ3IA CO'R.TIVF. 1)IRY ASCCIACION
Operating Capital. The 4ssoo1ation delays payments
to members for shipments until the erd of the current
month. The principal source of obtaining o'oerating capital is through means of a rovclving fund 'olan. Earnings,
which occur through nianufacture of dairy 'products, are re
tamed by the Aseooition to finance its operations. The
Association issues certificates of equity to its members
as written a&ow1edgrnent of the AsaoOiation's indebtedness to the members. Certificates are issued to members
in proort ion to the volume of business which each member
does with the Association during the current year. These
certificates bear no interest and have no fixed maturity
date, but are ronald cccording to age, the earliest being
iaid first. ayment is by action of the board of direotora.
The Association issues two kinds of revolving fund
certificates, milk certificates and feed certificates.
At present milk certificates are revolved on an eightyear basis, teed certificates on a five-year basis.
Transfer of certificates by members may be made only
with the consent and ap'proval of the board of directors,
The owner is not entitled to vote in the affairs of the
Association through holding of certificates.
VALUE.
Series
No.
FEED CAPITAL CERTIFICATE
LOWER COLUMBIA COOPERATIVE DAIRY ASSOCIATION
190-9th STREET, ASTORIA, OREGON
'1
THIS CERTIFIES THAT
is the owner of on undivided interest in the distributable income of the Feed Department of the Lower Columbia
Cooperative Dairy Association in an amount of
THIS CERTiFiCATE is issued pursuant to Article Xl of the By-Laws of the sold Association, and subject to oil the terms
and provisions thereof, and shall be paid or retired in accordance with the By-Laws of the Association. Any matured
indebtedness due from the holder hereof to the Association may be deducted from the amount hereof before payment is made.
THIS CERTIFICATE shall be null and void and of no value if not presented for payment within one year from the date
of call for payment.
THIS CERTIFICATE may be transferred only in accordance with rules and regulations promulgated by the Board of Directors of the Association. No transfer shall be effective until and unless recorded on the books of the Association.
The said Board of Directors may require as a condition precedent to any transfer hereof that any indebtedness to the
Association of the holder and owner of this Certificate shall first be paid before the transfer shall be made or
recognized.
Issued
,
194
LOWER COLUMBIA COOPERATIVE DAIRY ASSOCIATION
BY
SECRETARY.
FIRST TRANSFER
THIRD TRANSFER
NO.
SERIES
For value received I hereby assign and transfer
For value received I hereby assign and transfer
To
To
all of my right, title and interest in and to the within
all of my right, title and interest in and to the within
certificate.
ISSUED TO
certificate.
From
From
The above transfer is this day accepted.
The above transfer is this day accepted.
Lower Columbia Coaperotive Dairy Association
Lower Columbia Cooperative Dairy Association
FEED CAPITAL
CERTIFICATE
Date
By
Dote
By
FOURTH TRANSFER
SECOND TRANSFER
For value received
I
For value received I hereby ossign and tronsfer
hereby assign and transfer
LOWER COLUMBIA COOPERATIVE DAIRY
ASSOCIATION
To
dll of my rigft, title and interest in and to th
certificate.
certificate.
From
To
all of my right, title and interest in and to the within
within
$
From
The above transfer is this day accepted.
The above transfer is this day accepted.
Lower Columbia Cooperative Dairy Assaciotion
Lower Columbia Cooperotive Dairy Association
Dote
-
DATED
Dote
By
36
arnins. The Asociation returns the market price
for milk shipments to the producer. aa'nings are distributed according to action taken by the board of dimetors. Not more than eight per cent dividend may be paid
each year on common stock held. by the !neiilbers.
The pres-
ent dividend is four ner cent.
The policy at proent is to reduce atronage dlvidentLs and increase certificates of equity, paying off the
earlier certificates as rapidly as possible. i portion of
the earnings are set aside as resorvo for inventory fluetuationa, edusational purtoses, contingencies, and building revaluation.
Al]. bends and referred stock have been called in.
Only common stock at proent is outstanding. There has
been no limit placed on number of shares of common stook
th*t a member can hold. owever, the shares er member is
graduafly being reduced to one ten-dollar share. Vhen a
new shipper doce business with the AssQeiation, the cur-
rent year's earnings, which are prorated to him, are held
until a sufficient amount has been accumulated at which
time one share of common stock is issued. The shipper is
then a member with the right to partioiate in the affairs
of the Association. Any further earnings are distributed
to the member as revolving fund certificates or cash
patronage refds, according to action by the board of
VALUE $
CERTIFICATE NO
SERIES NO
Patrons' Squitics Ccrttficate
LOWER COLUMBIA COOPERATIVE DAIRY ASSOCIATION
INCORPORATED UNDER THE LAWS OF THE STATE OF OREGON
ASTORIA, OREGON
is the owner
THIS CERTIFIES THAT
of a Patrons' Equities Certificate of the value shown above which is a certificate of
interest in the Patrons' Equities Reserve of the Lower Columbia Cooperative Dairy
Association.
This Certificate is fully paid and non assessable, and transferable only with the
consent and approval of the issuing association.
This certificate is non interest bearing and redeemable at the option of the
Board of Directors under the terms and conditions printed on the reverse side hereof.
This Certificate is not a share of Capital Stock and does not entitle the owner to
vote in the affairs of the Association.
IN WITNESS WHEREOF, the Association has caused this certificate to be
signed by its duly authorized Secretary and to be sealed with the seal of the
Association, this
day of
A.D. 19
LOWER COLUMBIA COOPERATIVE DAIRY ASSOCIATION.
BY
SECRETARY.
-I
m
n
Association.
the to patron the of obligations all and any redemption of time the at
Certificate this against charge to right the reserves Association The
full. in certificates redeem
to insufficient are monies if basis percentage a on certificates of series
such redeem or series in certificates oldest the pay to Fund this in capital
working necessary the of excess in monies all use may Board The
z
2
U)
U)
C
.0
m
U)
0
-I
0
.5
3fl1VA 'a3Al3D3f 'I
pUD 32!J094fl0
'-14
woJJ
344 3Aoqo 34DD!4!4J0D 04
' 6L
itT1
6L
CD
0
CD
eI-
S
-
REDEMPTION:
i(q3Ja4 '1os 'U6!SSO puo
NOLLYIDOSSY
UOJ4Od J3UMO
Aw 4S3J34U!
J3MO1
DIquJflo 3A!4DJ3d00J AJI0C
S!44 34DD!!4J3D U39M 4! SI pwaapa 04
344 pau5!SJapUn
Directors. of Board the of
option the at only redeemable is and date due no has Certificate This
IOd
340;!4JaD
Jasuo.q oun
UI S144
.I3SUOJ4 0
UO!4D!OSSV 04 Aod 344 Spaa0Jd 0
394 peLuoU-aAOqo 33U6!SSD
.SS3U4!M
aLj
rtl
vIwfl1QD ALLVfldOOD AJlva
soi. uoaq paAOJddo Aq 344 6UIflSS! LAO!4DPOSS',/
I3MO1
O.Ifltff
ZE
I-to
0.4)
lu
4)
4)'.e
04)
C-',
.
I.
.e o
4)
:
4)'0
4)
a.
m
-1
0>
directors.
In the Astoria area, grade A milk
ntlk pool tndertic trpervision oi the
rade A Milk Pool.
is handled in
Association. The AssooiLion. iii does not bottle or
distribute grade A milk to oonsuzers in this area.
acts as a collection ageno arid reshiia the milk according
to the needs of the distributors who bottle and deliver to
the consumer. or the coats inVolved in oolleotin and
processing the grade A milk, three 'o ex' oent of the total
receipts are withheld by the nssooia tion. The milk pool
is operated on a quota basis 'under the state Department of
Agriculture.
During 1948. the cost of o'perat&ng the milk pool was
one and one-half per cent, the difference paid to grade A
shippers as cash dividends ar1 certificates of equity.
Collection of Milk. The Association originally hired
private individuals to cofleot and haul the milk.
present the Association owns most of the trucks. The
trucks are covered and collections are made as timely as
possible to prevent the cans standing at the roadside,
subject to dust an high temeratures. roduoers, who ar
located near the factory, generally haul their own milk.
Zones are established aeooring to the distance from farm
to the factorj. Different hauling rates are established
for each zone. The hauling charges are deducted from the
40
month's payment.
Grading and Pestfi]k. ractory milk is graded
ayment is rntde for bitterfat
na dry solids non-fat in the milk. Jll oroducers are
paid the same for butterfat and for milk o1ids non-tat
based on four per cent milk, e7cept that 'premium butterfat receives five cents oer ound additoual. The ksaooi"premium" or
standard".
etion believes itself to be the fIrst orgnizt1Ou to pay
for milk on snob a bseis. The grading of factory milk is
by sediment test and bacterial test, known as the methylone blue teat.
ken from the prothicers' milk
Sediment tea
once each month and milk is rted olen, fIr. dirty, or
very dirty. ?o qualify for "DreIorn" grade, milk must be
rat. fair or clean. Milk wMch is rated as very dirty is
rejected, colored with a red dye, and returned to the producer with a warning to Irrnrove the cnwlJ.ty or receipt of
ahipiente will be sridd. The dye which is used to
color the milk Is not harmtu to an!rna1 and. the producer
may teed such milk to livestock on the farr.. records of
the Olatekenie plant ahoy: ratinps of thc producers In that
area by sediment test.
Figure 12:
Milk dumping station and can washer, Clatskanie plant,
Lower Columbia Cooperative Dairy Association
42
January 1949
Clean
Pair
Dirty
2
60%
Very dirty
15%
March 1949
g, f-4
69J
11
June '949
., .,
10
1%
The teat for bacteria is made twice each month.
If
the amot of bacterial growth is below a sneolfied limit,
the milk is qualifiei for premium grade from standpoint of
the bacterial test.
In addition to the Hethylene blue teat and sediment
test., milk and cream is also graded for acidity, flavor,
and odor. The grading Is done either by a state inspector
or a licensed grader in the plant. Milk that is sour,
wholesome as to flavor or odor is rejected and returned to
the rodnoer with a tag ex1aining the reason for rejee-
tic".
Results of the methylone blue teat and the sediment
test are reported to the produoer8 monthly.
Butterfat tests on factory milk are made twice each
month, once during the first fifteen days of the month and
once during the last fifteen days. Butterfat tests for
grade A milk are taken once each week. Churning cream is
graded as üremium, first and second grades.
There is little competition for milk
in the Astoria area, the Association receiving practically
the entire production. There Is comoetition in the areas
Competition.
43
which supply the Grays River and the Clatakanie plants.
This is especially true in the lowland dilced districts
lying along the Oolumbia River. The dairymen are aware
that competition is necessary, but many produaers have in41.oated concern on observing three or four milk trucks
covering the aae route each morning where there is a limited quantity of milk produced. They realize that the
producers an, paying the costs of keeping these trucks in
operation.
In the Clatskanie area much land has been taken out
of pasture and planted to ept,ermint. In some cases
dairymen have sold their dairy herds and changed entirel
to mint production. Other farms are divided between
dairying and mint growing. The result has been a decline
in the milk volume from the area.
Directors. The Lower Columbia Cooperative airy
Association has divided its area into thirteen districts
with a direøtor elected from each. 1ireotors are elected
for a teem of three years with an election sequence of
4-4-5 for the directors during the three-year ieriod.
Bleotion take place at the annual meeting. lLonthly meetinge of the direetors are held the fourth ?riday of each
month at the central office in Astoria. Directors are reimbursed for eienses incurred in carrying out their
duties.
44
mp1oyeea.
Many of the emiloyoes have been with the
Association since its early years.
New men are being
trained for jobs and will re'nlaoe the older men uDon ret1renent.
arise.
A number of the employees are paid monthly sa
However, moat of the eiirnloyeea are working on an
hourly basis, receiving payment according to union r
ttons.
Number of errnloyees at the Lower Columbia Cooperative
try Association plants, as of rebruary, 1949:
Aatox'i
Grays River
28 full time
14 full time
2 part tires
2 i,art time
ed De'art
Olat akanie
9 fUll time
1 part time
23 full time
,Information Service.
tal
A field man 18 employed by the
Association to contact the members and discuss problems
of oroduation and exolain the Association's policies.
F4aoh month the Association publishes a bulletin,
Lower Oolumbia Co-cD News".
This bulletin contains
monthly prices of milk and cream, feed prioe, information
concerning operations of the Association, and material of
general interest to the members.
to every member each month along
The bulletin is mailed
with his check.
45
PRCiGR;.3S 03?
LOV1'R COLUMBL COO? i .iIV
.i1W'i
0CL-E
The total gross business of the
Association since its organization until January 1, 1949,
was 34,671,563.06 (3, o.i).
Net di8tributable margins during this Deriod totaled
Business Yolume.
708 890. 95.
Authorized common stock of the Association is
6,566.4]. has been issued.
125,OOO. Of this amount,
Patrons' equities in the dairy department amount to
515,592.85, and in the feed department, :99,986.55.
Oaah paid in the form of dividends to atrona during
this period has amounted to 724,156.04. phje includes
patronage djytdends and dividends on common stock.
The increase in the net worth of the Association is
indicated (4, p.3).
Years
1938
1940
1943
1945
1946
1947
1948
7 orth
-
468,602.66
-
777,435.28
1,034,889.72
1,118,018.40
1,140,290.46
-
-
721,89.28
Figure 13 shows the total membershtt equity, annual
increase, and the certificates which have been redeemed.
The revolying fund is oerating at present on an
46
ANNUAL INCREASE
600
TOTAL
VA
L1BERSH
EQUITY
CERT IFICATES REDILD
500
400
30Q
1x4
0
U)
U)
20O
/00
Figure 13:
YEARS
ANNUAL INCREASE; TOTAL 1fiEMEERSHIP EQUITY; CERTIFICATES REDFM1D
LOWER COLU1BIA COOPLL&TIVE DAIRY ASSOCIATION
47
eight-year basis, therefore afl certificates isswd before 1940 have been redeemed.
Figure 14 sho the net distributable margin by
year
ota]. yearly sales are shown in i?igure 16.
In Figure lo, the total milk iiipments by pounds to
the 'ower olumbia Cooeratiire Dairy Asaooiation's plants
811100 1934 are shown.
A steady increase is noted in
shipments received until 1945, when a considerable decline
in milk reeeints occurred. This probably is caused to
some extent by a Bhift from ciairying to othQ.r enterprises.
liemberahip. Thmernbrsiiip of the Lower Uolurnbia
Cooperative Dairy Association is conmriL;e;i of throb types
of produoers: grade A, factory, and uram.
Grade .& production is consumed as whole milk and refarred to as bottle trade. himnonts of factory and crüam
production are used in the mantLCacture of dairy products.
ucrs in tne
There are aproximately 74 rae A
Association. Datrying is the rrimrj occupation for most
of these members.
Aproximately 720 factory milk shiiors and. 15U cream
shippe?s patronize the .ssociation. ome of these members
ship milk oroream for the entire year, while others ship
for part of the year. any of these eembers do not
4U
imarj oeupation.
The memberskito a a eroentagG of active shippers by
areas and kind of orocluction in Juno, 1949, is ahom.
oonsidei' dairyirig thet
Grays River
Astor I a
Grade A
1aotory
5.1
.L.
32.
Vf.7
Total
Vf
76. 5
Cream
Total
100.ot1i;
41.6%
There are aporo riatiy 450 oatron3 who are members
of the Assoolation through patronge of thr fer1 departthe As2ociation.
mont and who do not ship millz or rwa
As patrons of the fec1 d .rtnet, thy my artioite
in the affairs of tho
ooLion.
200
50
0
1922
/924
/926
/28
l9
/93
I95
'
/9.38
/940
/942
1.94*
I1#6
YEARS
14: NET DISTRIBUTABLE MARGIN - LOWER COLUMBIA COOPERATIVE DAIRY ASSOCIATION
/94.9
4oQo
0
I9Zb
/L$
'930
194Z
1,34
1H4
/938
1940
1944
YEARS
?gure 1
AINUAL SALES - LOWEI COLUMBIA COOF12.ATIVE DAIRY ASSOCIATION
/942
40
50
0
20
/0
0
'N.
/936
/918
,94
1,40
/9+4
'94'
YEARS
io:
MILK RECEIPTS - LOV1ER COLUMBIA COOPERATIVE DAIRY ASSOCIATION
/948
RT$UL3 OF QU':SNorITAI1;3 MW DihV
LOWER CO3UIJBIL COOP }
IV
4J1 Y
e$OJI
.ITff
IOT
li
A baekgronnd of the Association's develonment, organisation, end operation has been presented. in the precedIng
chapters. These are factors which directly affect the
presant-da membershio relations of the ssooiation.
Th obtain desired information on membership relationa, use was made of questIonnaires md personal Interviews among the active Bhiiers.
Selection of members for oersonal Interviews was made
on a baste of ten per cent of the active shippers located
within each of the thirteen districts. The ten per cent
member aeleotion was sub-divided to obtain a reresentative aamls of grade A, factory, and cream shippers.
Names of producers, who were Interviewed, were 3hosen at
random from the current files of the Lower Columbia 000T-
arstive Dairy Association.
A questionnaire was mailed to each active shipper.
Use of questionnaires was desirable, for each member was
afforded en opportunity to freely exress his opinion
regarding policy arid raotIco of the Association.
Returns of questionnaires amounted to 15.4 per cent
of those mailed.
The active ahitmers In the Association are comosed
of 7.8 per cent grade A shirmers, 76.6 per cent factory
53
shippers, and 15.6 per cent cream shi'ooers.
Forty-three and two-tenths or cent of the grade A
shippers, 13.6 per cent of fotory shipers, and 10.2 per
cent of cream ahlimers answered the questionnaire.
it was imosstbL to obtain per cent of return
according to age grour)s as a breakdown of the total mernbershi by age grout could not be accomplished.
Ten per cent of the actual shippers are used in
tabulated results.
The results are tabulated according to:
Tye of t,roduoer - grade A, factory, ni cream.
Years of memberslth,
years, 20 to 26 years,
tn
- 0 to
years, 9 to l
charter members.
The 0 to 8 year selection for new members was made
as milk certificates are revolving at resont on an eightyear basis. These new members have not yet received payaent for Ganoellation of their first issues of eouity
certificates. This may have some influence on attitudes
of new members.
Tabular form is used to rovide a clear conception
of members' knowledge and oinions.
54
MgRs:
WR SIZE; TJ
OF SD'MENT
Table 1: Answers to uestions (Per Cent)
No. 1: br how many years have you been a member of the
Association?
Type of Production - "A" Factory Cream Total
Tears
0-8
9-19
20-!6
Obarter
38
38
45
24
15
-
21
19
6
33
-
-
48
24
15
13
No. 2: What is the average number of cows you milked
during 1948?
Type of Production - "A" Factory Cream Total
Cows
08
6-10
11-19
-
20
Tears of Membership
12
1
50
25
0-8
30
40
16
14
9-19
60
13
27
20-26
33
33
21
13
Charter
Cows
0-
6-'lO
1-19
20
43
24
20
13
46
7
l7
50
13
14
22
29
77
1
8
No. 3: Do you ahii to your Association: During entire
year? Part of year on].
Type of Production - "A"
During entire year 100
Part of year only
Years of Membership
During entire year
Part of year only
Factory
Total
18
82
Cream
53
47
0-8
9-19
20-26
Charter
70
30
74
100
26
79
El
100
One half of the r.nernhirship have been oetrona of the
Aasooiation for less than eight years. The greatest
ohange baa been with fretory ar.d cream shippers. One
feuth of the original r.dr L roduoers are still patronizing the .&esooiation, but aiüy thirteen per cent of the
charter members are still active.
This is of significance in the tdy of rembership
from the older
relations, for as the memherithi ohar
to newer members, new Problems are likely to arise. The
Association has an ecellent record of aoornishment,
yet it is well to be a'r of thc ohans that ;:ire occurring and to 1an a suitable educational nrogri before
serious membershi. roblers arise,
Grad. A producers show the largest herds, three
foui'thn of them having herds of eleven cows or more.
Nearly half of the faotori ahiDners milk from six to ten
cows. Over half of the cream shir,pors milk less than five
cows.
According to years of membershi nearly half of the
aebers in groups of 0 to 8 yearai.d 9 to 19 years milked
less than fIve cows while one half of the 20 to 26 year
groun milked from six to ten cows. Three fourths of the
charter members milked from six to ten cows.
This wonid indicate that grade A production to a
large extent was with the older members while a large
art of the factory
him;nts oomo from the
newer menibera.
Thra fourths of th rmi3rs shiie itlk or cream
oreu )roducer$
for the entire year, but ne half
ehiDped for only art of the year.
All of the grad A roduer and the older meabem
ahi'pe turing the entire year whil one fourth of the
ied for only part of he jear.
mbez's
This further indicates that the newer membere, who
make up one half or the meibership, havi uail herds and
ahii ox'oam or factory milk.
57
.ARTICLS OF AST3OCi!TI01'T MW BY-13
Table 2:
Answe.r
to
uestions (per Cent)
No. 1: Have the Articles of Assooitior1 an By-1iws been
uada available to you?
Facitory
Cream
Type of Production - ]Y
Total
Yes
No
Years
MemberhiD
Tea
No
87
13
63
0-8
9-19
57
43
;7
70
30
80
20
20-26
68
32
Charter
P/9
92
21
8
c..r'fviiy thr rtJcJe of fsaooiation and By-laws or yoin Isooiation?
Type of Production Factory Cream Total
No. 2: Have you rei
Yea
No
Years of Membership
Tea
No
50
50
0-8
18
82
9-19
20-26
74
21
79
20
80
4
53
25
75
Charter
46
54
to do hi3uiss wti the Assooljf a member oe
ation, does he still., maintain the right to vote in
3
the Assogiotion's affaj,ra
Type of Production Factory
Yea
7
No
12
13
Do not bmw
Tears of Metnbershin
Yea
No
Do not know
0-8
15
22
63
14
2?
59
9-19
26
26
48
cream
7
33
60
2O-C
Total
18
27
Charter
14
1
36
50
38
4.7
58
No, 4: Does the AasooAation h;.ve th iiriTi1ege of purohasing the certii1oatos oZ cogniaon stock o2 ny
member who ceascs to do business with the Associa-
tion?
Type of Production - "A'7
62
Tea
No
Do not know
-
39
7
No
Do not know
No. 8:
38
4
38
Tears of Membershio 0-8
Tea
Factory
54
9-19
52
4
44
cream
73
13
14
20-26
rotal
46
5
49
Churtor
36
69
64
23
-
8
Is the Assoeiat1or incori,orted under the laws of
the state of Oregon?
Cream
75
42
60
48
25
58
40
52
A"
ye'
Do not know
No
Tears of Membership
Yes
0-8
9-19
44
48
No
Do not know
Total
Factory
Type of Production -
56
52
20-26
Charter
43
69
'S
'S
5?
31
In evsnt of financial diffleulties of your Association, cn you be hold ront11y rc*oonibi for
No.
more than the amount of your investmout in your
Association?
otal
actory Cr:
Type of Production - "Ar
Zes
110
Do not know
1
38
1
30
4?
2
33
59
Tears of Membershii
0-8
9-19
4
28
68
35
Tea
No
Do not know
65
10. 7: Do you hare as much voting power
her of the Association?
20-26
Charter
36
64
any other Inem-
Factory
Cream
Total
88
59
60
61
0-8
9-19
20-26
Charter
Type of Produotion - "A'1
Tea
No
Tears of Memberhi
Yes
50
50
Jo
No. 8:
Do yo
57
86
43
14
85
15
obtain your voting power according to:
Amount of shioments?
Number ci cows?
One vote for eacM member?
Number of shares of Association stock be1d by
the munber?
?ype of Production ount of shipments
A1
amber of COWS
One vote per meaber lOt)
Shares of stock
Do not know
Tears of JLembxhi..
Amount of abiDmirts
1imber of Cows
One vote per tueruber
Shares of stock
Do not know
Cream
F
4t/
15
26
33
20
2)-.E
)
52
22
26
46
22
30
Total
60
17
2
Charter
86
84
8
14
8
-
60
As members are the owners and depend ioon the Asso-
ciation to furnish a ready inirket for their shipments,
they were axected to have some zowledge of the tioles
and by-laws which govern the Association's actions.
Nearly three fourths of te members said that the
Articles of Association and by-1ns htd been made available, yet only one fourth had read them carefully. Nearly
all of the *harter members had access to the Articles end
by-laws. Less than half had carefully read thorn. Less
than one fourth of the new members had read them although
they were available to more than one half. Half of the
grade A and cream shipers had read the Articles and bylaws: over three fourths had access.
According to Article V of the Articles of .8sooiation, if any member ceases to do business with the Association, the board of directors shall have the oDtion of
urchaathg the oonnon stock. During such period of ineligibility to hold common stock, the party shall have no
voice or right as a common stockholder in the business
(5, p.6).
When members were asked, if they ceased to do busi-
ness with the Association, did they still have the right
to vote, one fourth gave the wrong answer and half did
not know. Three fourths of the grade A Droducers
answered incorrectly, only twelve oer cent being correct.
61
Half of the 8rad0 A producers said they had read the
Artieies and by-laws carefully.
In all other cases a variation of about half of the
members did not know, the remaining answers varying between correct 031d incorrect.
Halt of the membership wore uncertain whether their
stock could be purchased when they ceased to do buathesa
with the Association. About three fourths of the cream
shipoers and charter members were sure this could be done.
When asked if the Associat ton was tnoori orated. under
Oregon law, three fourths of the charter members and grade
A shippers end two thirds of the cream ahipers answered
correctly. In the renialnin groups the members were
divided between knowing and. not being sure.
It is written on the face of all milk certificates
that the Association is incorporated under the laws of the
state of Oregon.
To determine if members knew the value of being ineororate&, a question was asked concerning their personal
responsibility in event of Association difficulties. 'rom
half to three fourths of the members in all groups were
uncertain of their ersonal responsibility.
Two thirds of the members knew that members had an
equal vote in the affairs of the Association. The older
members and grade A producers nearly all understood their
62
In the remaining gx'ous from forty to
fifty per cent said they d1 ot have equal voting power.
Uebara wore asked to nae the iethod by which they
obtained their voting bower. AU. grado A produoers
answered that every nember had one vote, yet in the proceding question, twelve er cent o' thorn said that they
did not have an equal vote. On ffourth of the newer membore and one third of the cream hipper indicated. that
voting power was according to the number of shres of
Toting power.
saoeiation stock held, by the mewLers.
Two thirds of the total membrshi b'ew the basis
for voting and one fourth wro not sure.
f ust ions on Articles of
In answer to the seri
Association and by-lavi, grade A. producers were on
slightly better ;Lnforrnd than cream shippers who were
better informed than factory shhoers.
The older members iii nearly all ca
owlodgo than the newer merrbers.
.ndioatad more
63
rErs' PARTI0iPTI0N DT ASS0CIAPI01
to Questions (Per Cent)
No. 1:
I)o you own -part o
Type of Production Yes
No
Do not know
Tears of Monberhi'
Yes
No
Do not know
the Asccition?
"A"
63
-
3?
0-8
Factory
40
31
2
9-19
43
41
26
9
48
Cream
TOtal
47
43
26
2?
20-26
50
36
14
28
29
Charter
69
8
23
No. 2: Do you know the amount of your investment In
your Assocthtton?
Type of Production - "A" Factory Cream Total
Yes
No
Tears of Membership
Yea
Jo
50
50
40
60
53
47
0-8
9-19
20-26
41
39
43
61
57
59
43
57
Charter
54
46
Ia there a maximum limit to a member's investment
in the Association?
aotory Cream Total
Type of Proiuction - "At'
3:
Yes
No
Do not know
38
12
60
Tears of Lembership 0-8
Tea
15
Do not know
81
J0
4
21
13
5
7
21
6
73
74
80
9-19
20-26
26
21
9
7
8
65
72
61
Charter
3]..
64
Do you have any investment other than certificates
of eoamon stock in your Association?
Factory
Cream
62
38
22
78
33
67
0-8
9-3.9
Type of Production - 1'A"
Tea
No
Tears of Membership
Tea
24
76
No
Shou1
22
78
20-26
29
71
Tota
27
73
Chart or
46
every shiper to the kasociation persona y
have some money invested in the Association?
Total
ct cry Creai
Type of Production Tee
87
13
No
Years of Membership 0-8
Tea
63
37
No
76
25
13
27
9-19
20-26
83
86
76
24
charter
100
.i.7
Do your patrons' equities certificates have a
fixed maturity date'
Type of Produotior - "Ar'
25
62
Yea
No
Do not
ow
Tears of Membershi
Tea
No
Do not
ow
Faotori
16
13
49
36
0-8
9-19
13
17
43
40
50
37
Creuu
ota1
20
40
40
17
49
20-26
29
42
29
Z4
Charter
15
62
2
65
No. '7: Do you receive interest en patrons' equitiAs
certificates issued by your Association?
Type of Production
Tee
lie
Do not
Tears of Membershit
Yes
Jo
Do not know
8:
Do
you
f
Factory
Cream
25
63
12
21
3
30
27
40
0-8
9-19
15
33
35
52
49
26
39
43
23
32
45
Charter
31
38
31
receive dividends on certificates of conon
stock is8ued by your ssociation
Type of Production - )AU Factory
Yes
No
Do not know
Tears of Membership
Yes
No
Do not
26
Total
iow
Cream
53
Total
47
38
3?
25
47
14
40
47
13
40
0-8
9-19
20-26
Charter
39
17
35
57
52
7
36
44
13
-
84
8
8
It was axieoted that if a member was taking an interest in the Association, he would have some idea of his
ownershi', investment, and benefits received from the
Assoolat ion's act Ivities.
Thowleclge of member ownership Is very limited.; about
one half of tIe members questioned, knew that they owned
the Association. Of these rembers, the greatest knowledge of ownership was with the grade A roduoers and the
sharter members.
One half of the members did not know the amount of
their investment. Three fourths of the mirnbera were not
mwe it there was a maximum limit to thetr investment.
There is no limit of a member's investment in the Association, but there nay have been some ou°st ion in minds of
the members on what was meant by investment.
Three
tortha of the members believed that a shimer should
have some investment in the Association.
.l members partiotte in the revolving fund and are
issued certificates of ecutty on earnings by action of the
board of directors. It is written on the fao of all certiftoatea that thee"re non-thterust bearing and redeemowldffl is
able at option of thc board of d.reotors
limited concerning the retirement of cetiftcate and
whether interest is oaid on these certiflOates.
67
About on lwZLt of the ;einber
did. not realize that
dividends az'. paid. on certificates of comr.on stock, although dividends have been raid. annually.
members' prticiration in the Assoolation'a affairs is limitr4, es,eoially among the aOZ'e
Knowledge o
recent members and. among factory and cream shippers.
Pactory and oream shiiroers, many who consider dairying as
a t&rt-time ooeu ation, indicate less p.itioiatiOfl in
thR Association than grade A shippers.
23
29
0-8
9-19
46
13
41
57
30
57
69
13
14
8
Charter
43
12
20-26
40
13
Crarn
Total
47
45
54
46
Charter
72
28
50
50
20-26
67
33
42
14
44
-50
ow
not
Do
No
Tee
Membership of Tears
biow not Do
Jo
Yes
50
Factory "A" Production of Type
plan? the of favor in you e
2: Jo.
0-8
9-19
22
83
17
75
25
Jo
78
Yes
Membership of Tears
50
50
No
Ye
Total Cream Factory "A" - Production of Type
Assoolation? your of operations finanoing
of method fund revolving the understand you Do 1: No.
Qent) (Per ,uestions to Answers
4:
REVOLVING
68
69
Three fourths of the membership did not understand
the revolving fund, but nearly half were satisfied. with
its operations.
Only twelve ner cent indicated dissatia-
fastion with the revolving fund.
Grade A producers showed better knowledge of the
reTelving fund than did factory or cream shtpters.
half in each grop said they were satisfied.
About
Not one
ade A shipper indicated dissatisfaction.
Older members understood the revolving fund better
than did the newer members and were better satisfied
with it.
they
Baif of the new members did not know whether
tavoxd the
plan.
70
bLJJ:TTflIG CONTRACTS
Table 5:
Answers to :uestions (Per Cent)
Should all members be required to market all milk
through their Association?
Factory Cream Total
Type of Production -
1(0. 1:
Tea
58
47
66
9-19
20-26
62
37
63
No
44
42
Tears o Membershin 0-8
Yes
53
38
48
52
50
50
Charter
54
46
a. 2: Are you in favor of signing a marketing contract
requiring you to sell through your Association?
Type of Production - "A'
Yes
No
62
38
Years of Membershin 0-8
Tea
28
No
'72
Factory
Cream
Total
26
74
40
60
31
69
9-19
20-26
Charter
30
43
70
57
33.
69
7].
Nearly hale of the patrons thought that zernbers
sho1d be required to market their ahiments with the
Agsooiation, but only one third of them were willing to
et a marketing contract.
Two thirds of the grade A roducer were willing to
sign marketing eontracts although only slightly more than
one third thought that every shipper should be required
to ship to the Association.
In an. other cases more of the members thought marketing should be required than were willing to sign con-
tracts.
72
LOANS iD OKED IT
Table 6: £nswer to C:uestions (?er Cent
Should your Association make cash loans to its
No. 1:
members?
Factory
Cream
Total
50
50
30
70
27
73
31
69
0-8
9-19
20-26
33
67
35
65
64
Type of Production - TA
Yes
No
Tears of MembershIp
Yes
No
56
Charter
15
85
Should your Associ.tion tend credit or feed
and a'tzpplies to its members?
Total
Type of Production - ''A" Pactory Cream
No. 2:
Tee
Jo
Tears of Memberthi
Yes
0
80
20
87
1
85
15
0-8
9-19
80
20
91
93
9
7
20-26
84
1
Chrter
23
No. 5: Providing credit Is extended, should interest be
oharged on accounts which have become overdue?
Type of Production - "A" Factory Cream Total
Yes
No
Years of Membership
Tee
No
62
'79
38
21
0-8
9-19
85
15
87
13
20-26
74
64
26
36
79
21
Charter
85
15
73
For how long a period should oredit be extended?
Factory Cream Potal
!ype of Troductton
4:
Jo oredit
30 days
60 days
90 days
Jo thus lirait
Tears of Metibershi
110 credit
30 days
60 days
90 days
Jo tie. limit
12
26
37
38
0-8
26
23
28
11
19
15
4
30
1?
30
13
36
17
25
13
7
10
40
20
28
24
26
20
12
20-26
Charter
7
8
36
21
29
31
31
22
7
8
74
Only one third of the raember3 blieve the A5800ia
tin should make cash loans to its members. ighty-five
per cent of the charter members do not believe in cash
loans by the Association.
Grade A producers were the highest group favoring
cash loans, half of them belteving the Assoeiatiofl should
Derforra this function. In the remaining grows about one
third farored cash loans.
About eighty per cent or more in all groups favored
the policy of aredit for feed and sulies by the Association. Only slightly less than this amount believe th
interest ehoul& be charged for all accounts that had become overdue, providing credit is extended.
There was no definite idea of the length oi time
that credit shoulu be extended., thirty, ity, and ninety
days all being quite favorable to the members.
or mioic RDIiG
Table 7:
Answers to Questions (er Cent)
Yb. 1: Does your As800iatlon obtain for you satisfactory
returns on milk sold through it?
Type of Production - "A"
Factory
Cream
67
33
7
88
Yes
12
No
Years of )embership 0-8
Cl
Yes
39
No
27
20-26
9
74
26
71
29
Total
70
30
Charter
92
8
No. 2: Would you continue shipping to your ssociation
if a new organization began paying higher prices
in order to build its business?
Tee
Cream
88
62
58
60
40
64
0-8
9-19
20-26
Obart
63
61
39
64
69
31
12
No
Teai's of MembershIp
Yes
37
No
Total
Thctory
Type of Production - "A"
36
36
Jo. 3; If for a period of time you received a lower
price for milk through the Association th.n could
be r'eoeited from another organization, would you
continue shipiing to the Association?
Type of Production - WA"
Tea
0
75
25
Tears of Produotion 0-8
Tee
No
48
52
Factory
Cream
ota1
56
73
44
27
60
40
9-19
20-26
Charter
61
39
79
21
85
15
16
Nearly three fourths of all members were satisfied
with returns from the Assoolation. About ninety per cent
of grade A shippers and charter members were satisfied
with returns. The members that had belonged for less than
eight years were the least satisfied, only two thirds of
them feeling that returns were satisfactory.
When members were asked would they continue ahiping
to the Association, if a new organization began aying
higher prIces in order to build its business, two thirds
of the patrons eatd. they would continue shipments.
Concerning a lower price paid by the Assoolation for
a period of time, in ooparison with another organization,
again two thirds of the patrons said they would continue
shipnta.
in comparison by groups f or the questions concerning
irIoe, some discrepancy appears in the answers. Cream
shippers and older members Indicated a greater willinie
to ehi to the Association when Association orioes were
low for a period of time than would shiD to the Association when a new organization paid higher prices In order
to build its business. There was evidently some mlsunder
standing concerning the questions.
in conclusion, it ai,ears that the majority of the
members are satisfied with price and will oontinue to
patronize the Association.
20-26
Charter
28
36
36
15
39
46
3].
7
Cream
Total
13
48
21
80
26
48
26
9-19
34
44
22
33
52
15
20-26
Charter
50
38
62
50
53
16
15 - 6
5
0-
Miles
0-8 Membership of Teare
0
25
25
6
6-1
0-
Miles
- Production of Type
Factory
plant? receiving Aseoeiation's
your from located farm your
4?
51
49
61
39
9-19
48
52
50
50
0-8
is miles
3: No.
many iioiw
10
Yes
Membership of Tears
10
Tea
98
12
Total Cream Factory "A' - Production of Type
zones? by service 'nick-up milk for expenses
trueking the equ.alize pool Association the Shou1d 2: Jo.
64
20-26
Charter
36
69
31
6
34
73
2?
52
48
9-19
66
34
0
TOe
72
28
0-8
embership of Tears
No
50
50
Tea
Total Cream Factory 'Y' - P?oduotton of Type
olant? that from tance
Uls- greater much a at located members other of
shiDments the for exoenses trucking oay help plant
i.ssuoiation'a tho near locatei members Should
Cent) (Per uestions
to
AilsworS
1: No.
8: Table
ION C0LLI0T MILK
77
'78
In aner to questions concerning milk collection,
one third of the members would 'rrefor a general pooi of
tracking expenses oonrnared with one half who prefer a pool
by zones. In comparing answers given with distances of
farms from Associatioria plants, It 18 interesting to note
that mde A ehtpers, who have one half of their farms
sixteen miles or more from the plants do not prefer a pool
with zones.
As the distance from the plant decreases, preference
generally obangee to a tooling of trucking ex!ensea by
zones.
The differing oDinion from this generalization is
with oharter members who Drefer pooling by zones, even
though forty per cent of their farms are sixteen miles or
more from the plants.
In general, sh1rers indicate preference of a ool
by zones rather than a general tooling of shiping SIpensee..
However, firther work could be done concerning
milk collection as fifty per cent of the members still
indicate dissatisfaction with tooling methods.
8
84
-
29
50
7
20-26
Charter
14
8
33
Cream
ota1
-67
-
3
30
70
*
-
9-19
41
51
4
4
71
29
74
26
62
38
13
9-19
20-26
52
44
ow
riot
Do
otor! Dire
Manager
Meribere
-4
0-8 Membership of Tears
13
btow not Do
Direotora
-87
-
Menager
Meriibers
Production of Type
Factory
shall savings year's current the
54
46
35
distributed?
how
deoldes
be
Who
2: No.
10
Tea
61
39
0-8
Membershii,
of Tears
50
50
No
Tee
Potal Cream Factory A*I - Produetiori of Type
elected? i director a as serve you Wo1d 1: No.
uestions to Answers 9:
CTOI
IR
79
80
No. 3: With whioh of these directors are yoi acquainted?
Type of Production - "At' Factory Cream Total
Directox
A
10
14
A
B
18
14
25
13
C
A
A
A
A
A
A
$
D
13
50
38
63
25
50
G
J
13
U
38
13
U
Average
Jo direetors ]own
Teare of Membership
22
13
0-8
Director A
4
B
7
16
13
0
A
A
A
D
9
20
13
13
20
1
11
G
I?
A
A
J
7
U
U
Average
Jo directors
12
iown
11
16
22
7
7
1
19
16
23
25
2?
16
21
10
20
20
20
24
U
-
13
13
9
26
25
2?
-
21
1
17
13
19
20
19
18
10
11
13
18
10
20-26
Charter
36
15
29
29
21
14
16
46
22
36
29
36
29
29
21
43
15
18
23
22
7
8
9-19
4
22
9
17
4
26
26
30
22
30
13
13
13
14
23
31
8
16
62
38
23
31
23
Only one third of the total emberehip indicated a
wiUinteea to serve as directors if elected.
Oream sbipper were the least willIng to serve, only
thirteen per oet eh'wing any .1ntrat.
bot half of the
grade A shtppera and charter members said they would serve
it elected.
One half of the mexiber kznew that current savings
ware distributed by directors' action, about forty 'oer
cent not being sure. grade shim era and charter mbers
were the best informed.
t is interesting to note that a small nar cent of
the older members said that distribut ton of current avings was bp decision of members. This may bt a point in
question, for the directors are responsible for carrying
out the members' wishes and, therefore, the members are
indirectly reaponsible for distri.button of savings. In
no case does the manager distribute the savings as ws
indicated by three per cent of the vier.rthership and eevn
per cent at the 20 to 26 year group.
In this analysis the membership seems rather baokward about offering their services as directors, and are
*ot wall informed concerning the responsibilities.
To detrmine if members were acquainted with their
directors, they were asked to oheak op,osite the name of
directors with whom they were acquainted.
82
iaeb director was known by only one fourth ox' lea
of the total memberahii,.
By group ayerages cream ahiirers and new members
re the least acquainted with directors. Not over one
fourth of anj grouo were well acquainted with the direa
tore.
About ten per ocnt of the members in each
'oup
none of the directors.
This series of questions on directors would indicate
hat members are not too well acquainted with their directors, are not fully informed of directors' dutiea, and
would be rather inclined to let someone else take the
responsibility of being a director in the Association.
83
PARTICU'..TI0N 0' thTINGS
Table 10:
Answers to uestions (Per Cent)
No. 1: Row many Association meetings have you attended
during 1948-1949?
type of "reductIon - A" Factory Cream Total
One or aore
None
Teara of MembershIi
One or more
None
-
75
25
32
68
100
30
70
0-8
9-19
20-26
Charter
20
80
30
70
50
50
46
54
No. 2: How many meetings of the members of the Association do you feel are necessary during the year
to keep members informed?
e of Production - TL" Factory Cream Total
27
30
32
Annual meeting only 25
1 or 2 meetings each
4
year by districts
4
3 or 4 meetings each
year by districts
One meeting each
month by districts
No opinion
63
-
12
Tears of MembershiD 0-8
Annual meeting only
1 or 2 meetings each
year by districts
3 or 4 meetings each
year by districts
One meeting each
month by districts
No opinion
32
1
27
-
33
I
31
46
32
9-19
20-26
Charter
15
35
60
54
4
-
8
-
44
30
21
15
2
-
35
35
21
Thirty per cent of the saembers attended one or more
meetings of the Association during 1948-1949. Seventy per
cent attended no meetings. grade A shipoers had a better
attendance record, three fourths of them attending some
meetings. Cream shippers attended none of the 1948-1949
meetings.
According to years of membershiD, the older members
attended more meetings than the newer members.
Of members
who haTe been with the association for eight years or
less, eighty per cent attenôed no meetings during 19481949. This grouo composes half of the active shippers of
the Association.
When asked how many meetings they thought de
8
the membership was nearly squally split, about one third
for holding an annual meeting only, one third for three or
tcrnr meetings each year by districts, and one third had no
opinion.
Half of the older members favor tho annual meeting
alone. Nearly half of the newer members and two thirds of
the grade A shippers favored three or fotir meetings each
year by districts. A fairly aubattntiai number in each
group had no opinion concerning meetings.
It appears that the grade A ship'ers and older momwho are a minority in the Association, attend more
8
meting2 than do the faotory shippers, cream sh1pers,
and newer members who make up the substantial Dortion of
the Association's membershj.
86
INF0IJtTION
R'flCi
Table Ii; Answers to Questions (Ver Gent)
No. 1: With oonaideration for inconveniences and. additional costs, chould every member be given access
to all information about the operation and. flnancing of the Association?
Type of Produotion - "A"
75
25
Yes
No
Tears of Membership 0-8
87
Yes
1
No
Total
Factory
Cream
85
15
8?
13
9-19
20-26
Charter
74
26
86
92
84
16
14
o. 2: Oan overJ rernber obtain information about the
operation and financing of the Assooiation?
e of Production - "A"
Tea
Do not
Years of MeinberahiD
Yes
0
Do not Imow
63
-
Factory
67
6
Cream
8?
Total
26
-
70
4
57
27
13
0-8
9-19
20-26
63.
78
86
6
4
35
9
14
33.
13
-
Charter
No. 3: Have you made one or more suggestions to the
directors or manager during 1948-1949 on how
operations of your Association could be imriroved?
Type of Production - "A" Factory Cream Total
Yes
10
3?
63
Tears of Membership 0-8
Yes
No
11
89
14
7
86
93
9-19
1?
20-26
83
7
93
15
85
Charter
31
69
87
Row do you make known suggestions on improve-
ment of your Association?
Type of Production "A" ractory
25
U
Diøenasion at meetings
Personal contact with
15
63
directors
Personal contact viith
manager or emDloyees
50
Talks with truck drivers 13
Bymail
No method
Tears of Membership
Discussion at meetings
Personal eontact with
directors
Personal contact with
manager or employees
0-8
No method
-
9-19
10
17
20
22
22
80
49
5
48
Total
20-26
-
Charter
9
9
21
8
1
17
21
81
17
26
14
2
-
Talks with truck drivers 13
Bymail
19
2?
Cream
59
39
4
29
14
36
38
15
8
31
No. 8: Row do you receive most of your informatIon about
the Association?
"A" Factory Cream Total
Type of Production 24
22
13
63
nnua1 meeting
64
67
63
63
Oooperattve Bu11t1n
7
12
11
Manager and office help 38
14
U
13
Truck drivers
19
7
18
50
Directors
Other members
None listed
Tears of Membership
Jnnual meeting
Cooperative Bulletin
Manager and office help
Truck drivers
Directors
Other members
None listed
13
10
11
27
13
12
10
0-8
9-19
80-26
Charter
13
17
II
1?
-
61
9
17
9
13
50
89
29
22
12
7
7
7
22
4
21
14
46
69
15
8
38
-
8
88
Bighty-four per cent of all members and three
fourths or more of every group favored giving members
aooens to all information concerning operation and f inanelug of the Aseoclation.
Prom two thirds to three fourths of all grous
thought that every member could obtain suoh information.
One fourth of the total membershi', was uncertain whether
every member could obtain inforrnat ion about the operation
and financing of the Association.
Whn asked if suggestions during 1948-1949 had been
made on irnroytng operations of the Association, about
one third of the grade A shipers and charter members
ndieated they had. Only ten er cent to ifteon per
cent of the other grous had made suggestions.
How suggestions were made known, indicates that the
manager and employees, and truck drtvers rated as the
best probable sources.
Of the total membership, one half did not indicate
any method of communication.
The grade A shimers and older nembers indicate
that they take more interest in the Association by suggesting improvements. Newer members and cream ahi'pera
make the least suggestions on imnrovements.
Two thirds of the members receive information from
the 000erativo bulletin and. one fourth from the annual
meeting.
This is reasonable as thirty er cent of the
members indicated that they attended. one or more rnetings
during 1948-1949. Grade A shippers and charter members
indicate that an imnortant source for their information
is oontaet with the directors.
A disareancy is noted with the cream shippers who
indicated that half of them obtained inirmation from the
annual meeting although not one indicated that they had
attended any Association meetings during 1948-1949.
It app*a'a that the major source of information to
all members is the 000Derative bulletin.
62
73
65
5
-27
30
6'?
55
35
10
-33
9
47
67
41
-33
39
10
51
36
5
26
14
60
12
55
33
28
56
73
16
-27
29
7
21
20
14
59
73
12
-27
10
63
27
6
73
60
74
1
8
33
18
15
19
66
19
12
69
Total
-27
73
33
13
25
62
15
10
75
14
22
64
17
7
Cream
satsfaotory
Cent)
Faotorr
25
12
63
37
25
38
12
13
75
know
not
Do
Is
Tea
policies Uanalsa.nt
not Do
know
No
Tee
directors of Interest
know
members
12
13
all
not
Do
No
Yes
to Pairneas
not o
know
75
information of
12
13
75
know
Tee
31ing
not
Do
No
Yes
savings of etribution
12
13
75
know
not
Do
No
Tee
milk for paid Price
not Do
know
Tee
88
No
-12
milk of Grading
not Do
know
12
10
Tea
2
63
13
12
75
milk of thg Test
not Do
know
No
Tea
"A0
milk of Collection
- Production of Type
to: respect with
1: No,
been service Association's the Has
(er
Luestions to Answers 12: Table
SRVICiS
OF (Y'IMON ERS'
90
91
Yeara of )Lernborship
Collection of milk
Yes
Jo
Do not know
Testing of milk
Te
Jo
Do not know
Grading of milk
0-8
9-19
65
65
79
20
9
7
20-26
15
26
14
61
65
13
79
22
1?
aharter
77
-
23
70
21
.4"
-
15
15
74
86
77
8
Tea
69
9
9
'7
Do not kn
22
17
7
15
61
28
5?
17
79
21
77
52
70
72
79
11
37
9
2].
ito
Prios palA for milk
Yea
11*
Do not know
11
Distribution of savings
Yes
No
Do not know
21
I
23
70
72
62
9
7
21
21
38
59
9
61
4
86
69
1) -
14
31
48
61
17
22
64
14
62
22
38
64
54
22
46
SupD1rtng of information
Tee
No
Do not know
52
22
26
Fairness to all members
Tea
No
Do not know
Intexeat of directors
Yes
ito
Do not know
Managenent poltol
Tea
No
Do not know
23
32
7
45
45
11
44
52
13
14
-
charter the of cent per three Only members. newer thai
sa are members older the that
more services with d
groixing for Averages
show embershii,
a
b
directors.
of interes the with concerned also were shippers A Grade
milk. for paid price the with concerned were shipers
factory the of fourth One milk. of testing with ly
large- was shippers factory and A grade with occurred that
Dissatisfaction dissatisfied. were they said shippers
cream of cent per two Only satisfied. were shippers cream
and factory, A, grade of fourths three to thirds Two
dissatisfaction. some indioate cent per Twelv,
opinion. an give to inforr!' enough well feel not did they
indicated members the of foixth One Association. the
services with satisfaction indicated berahip
by rendered
maui- total the of thirds two serviocs, Association's the
ooncernlng questions the of averages to According
24
69
artar
26
12
12
76
20-26
8
15
2
64
67
69
6
(cr
12
biow not
Do
No
Tea
0-8 Membership of Tears
not Do
9-19
16
5
Cream
Total
Cent)
14
61
14
know
No
70
Yea
aotory
oduction of Type
T.ble in given £wr)r to Averages
92
muibers indleatad they were dissatisfied, with the services
rendered.
In only two questions did the charter members
indieate any dissatisfaction.
All others were satisfac-
tory or they did not feel fully informed.
Dissatisfaction
by age grouns occurred principally with testing of milk
and price paid for milk.
Patron. who have been members for eight years or
less were also concerned with collection of milk and supply of information.
In conclusion, the older members are relatively more
satisfied than newer members in services rendered b
Association.
iatted
the
Two thirds of the entire membership are sat-
n& one fourth are not informed fully in order to
give an opinion. About ton per
express some dissatisfaction.
cent of the membership
94
ME'4R3' RLSPONSIBThITII3
a mmber list several of your impor
onsibilities to your Association.
Oream shtppers showed a general lack of knowledge
concerning their resonsibilities. The greater nuniber
of answers ware from grade A shippers and concerned:
Attendanc, of meetings
Patronizing and loyalty
Shipping of clean milk
Factory shippers, in addition to the above answers,
øuggested that products be purchased.
learly all members said loyalty was their principal
responsibtlit7.
95
ASSOCIATION' S SUP RIORITT
lb. 1: Row is your Association superior to other organi
sat ions?
The ].srgeet number of answers from members as to the
superiority of the Jssoctation wIth regards to other organisations oan be listed briefly:
Assoolation rays dlvideflds
Members own the IssocIation
IROYMT OF AS SOCITION
Row do you think the organization and services of
your AssocIation can be improved?
Grade A and cream shippers did not Indicate a great
aany trovement a.
Factory shippers replied with many answers:
Improve teats of milk
ImpDoVe cleanliness of cans returned to shipoers
Reduce costs of feed
Build a effective field service to aid the shipper
Reduce number of eixpioyees In the plants
Pay more dividends and less revolving fund
aert ificatea
96
T1
.J V'
?
The Lower Columbia Cooperative Dairy Association is
one of the euooassful dairy 000'erativos in Oregon. It is
well-established1, held in resteot, and is not concerned
with serious internal conflicts in management and f inanelug. Oondltions are, therefore, desirable for a study of
membership relations in order to obtain members' opinions
that are not influenced by adverse situations.
The study is concerned with the knowledge and op inions of members in two ihases. Of major imoortance is
the breakdown of results according to years of membership
of the patrons. Second, the breakdown of results accord-
ing to grade A milk abtpers, factory milk ahipP era,
and
cream shippers.
The breakdown of patrons by years of membership was
o to 8 years, 9 to 19 years, 20 to 2 years, and charter
members.
The 0 to 8 year grout was made as milk certif-
icates at present revolve an n eight-year basIs.
These
members have yet to receive payment on revolving fund
certifloatee. It was desirable to compare the ooinions
of charter members with ooinions o those members who
Joined after the Association was atablished.
The active shioners in the .ssooiation are composed
9 per cent grade A milk producers, 76.5 nor cent
factory milk producers, and 15.6 oer cent cream producers.
Results of personal interviews arid. questionnaires are
based on a ten per cent survey of the active shippers.
One half of the membei'shit is composed of members who
have patx'onised the Association for eight years or less.
One fourth of the
memberebto have patronized the AssociaThirteen per cent of the
tion for twenty years or more.
active
memberehi
are charter members.
Thoh the Association is wall-established in its
operations, a substantial change in membership has occurred from old to new members.
The majority of these new
members milk small herds and are concerned with factory
or cream production.
ny of these factory and cream
producers do not consider dairying as their major
000upa-
t ion.
Tb. ol&.r members, who 'oredominate in grade A pro-
duction, indicate a greater knowledge of the Association's
'policie. than
the
newer meuibers,
at In all groups a sub-
atanttal number of ehi'ooers are not fully informed and
could not give a definite opinion.
owlidge of members' rartioipation in the Association's affairs was limited, but again older members indicated more knowledge than newer mezibers.
Active participation was also indicated to a greater
extent among the older members who had knowledge of more
directors, attended more meetings, and made more sugastions during 1948-1949 on inmrovement of the Association.
Older members indicated a greater satisfaction in
the services rendered by the Association than did newer
members. In only two out of nine questions concerning
services did the charter members express any dissatisfacti on.
Grade A shinpers, who are predominately composed of
older members, were able to list more of their resoonsibilities to the Association than could factory or cream
shippers.
The memberahir receives much of its information from
the Association's monthly publication, "Lower Columbia
Co-op Newsy', and to a less degree from Association's
meetings.
The meubera of the Lower Columbia Cooperative Dairy
Aasooiation are generally quito satisfied with oliies
and services rendered. Yet there is a definite lack of
knowledge and understanding, especially among patrons who
have been members for eight years or less and compose one
half of the membership. About forty per cent of the 0 to
8 year group indicated that they dId not have any ownership in the Association. Nearly two thirds did not wish
to serve as a director if elected. Articles of
Association and by-laws have been made available to
nearly two thirds of these nev- members, but less than
one fourth had read then care-rully. ieriy one fourth
thought that voting tower was granted according to the
nb.r of shares of Association stock held by the member.
Eighty per cant of the new members had attended no meetgs during 1948-194
The services o the Asoeiation meet with the aorov-
a3. of the greater portion of the membership. It is desirable that rendor±ng of such service be riaintained and
improved at every oportunity. Yet as evidenced by the
survey, there is a decided lack of
vJiedgc among the
patrons, especially with the newer taernbers who compose
one half of the Association's mewbcrship.
Therefore, the problem which is of immediate concern
to the Association is that of education, of building and
maintaining a fully-informed membership.
100
CONQLUS1ON$
Though an Association is firmly established and
efficient in operations, the gradual repaacement of
founders and charter members by newer and younger members. creates a condition in membershi'o which may prove
to be serious under stress of unfavorable managerial or
econOmic conditions.
The newer members are primarily concerned with
returns from the Association rather than having a apeolfic interest in the olioiea and ooerations. When
returns are satisfactory, patrons are satisfied to persit the performance of activities br the directors and
Patrons are concerned primarily with production problems of their own farms. The manufacturing and
marketing processes are of concern to the uroducer to
manager.
the extent that satisfactory returns are obtained.
If managers and directors do a skillful job in
managing the Association's affairs, 'nolicies are fair to
all members, and returns satisfactory, serious membership
problems are not likely to occur even though the membershin is not fully informed.
$ound business practices are, therefore, a important consideration in maintaining satisfactory membership
relations.
101
Management, however, must be concerned with more
than eod business raotices and efficient ocerations.
Severe economic conditions at some future tiue may create
problems which cannot be overcome by efficient management.
It is during such times that a mombershiD, well-informed
in the pi"inoiplas and 'oolicies of their organization,
provid. the necessary stability to save their Association.
In event that serious problems in management occur
or conditions necessitate a change in Association policy,
a wcll-jnThrmed membershjj, would be essential to expedite
the necessary changes with the least possible oonfllot.
Members provide the backbone of the Association and only
through combined effort and determinatIon of all, might
an Aasooiation 'ooasibly survive during such critical
'periods.
With this thought in mind, It might behoove the
Association to earxy on an educational -orogram for its
members. Such a program by the Association would doubtless insure the continued loyalty of its members and aid
largely in securing well-trained members who could effiolently perform functions as directors and be of invalu-
able service to the Association In times of stress.
102
BIBLIOGRAPHY
nnih, B. L
Memberabto relations of the Dairy
Cooperative IssooiatiOn. Thesis submitted to
Oregon State College, November 7, 1947. 65p.
Jones, J. W. Membershio relations of cooperative
aesociations. Farm credit Administration,
U.S.D.A., Bulletin No. 9, October 1936. lUp.
Laughlin, C. W. Twenty-fifth anniversary of the
Lower Columbia Cooperative Dairy Association.
March 7, 1947. 3p.
4.
Lower Columbia Cooperative Dairy Association.
1938, 1940, 1945, 1946, 1947,
Annual reports:
1948. Bach $p.
Lower Columbia Coonerative Dairy Association.
Articles of association and by-laws, February
23, 1946. 16p.
Miller, R. W. and Jensen, A. L. Failures of farmers'
cooperatives. Harvard Business Review 25:213226, Winter 1947.
Cooperative orgaui.
C.
Robotka, P. and Laughlin,
cation of Iowa farmers' creameries. Farm Credit
Administration, U.3.D.A., Bulletin No. 14,
92D.
April 1937.
Stitte, T. C. and Laughlin, G. C. Organization and
oeratjng oroblerna of Nebraska cooperative
creameries. Farm Credit !dministration, U.s.D.A.,
56p.
Bulletin No. 11, March 1937.
Welden, W. C. and Stitta, P. G. Li1k e000eratives in
four Ohio markets. Farm Credit Administration,
U.S..A., Bulletin No. 16. April 1937. 73p.