Palmer, Alaska
Editor . .
Advertising
uorotny m. otii
. . .June Knoff
Published once a week at Palmer, Alaska, for the Matnnuske Valley Farmers' Cooper
ating Association for the purpose of giving news of the Associations' work, prob
lems, and accomplishments.
SUBSCRIPTION RATS_$1.75_$1.00 for six months_10# a copy_
l*ROm(SS OR DECAY
By Carl Rasmussen
It seems that a great many of the members :of the Mata'nuska VaJ.ley jCo-op have a very
small knowledge of the workings of their c rj'gonlzetlon, despite the efforts of
the Board of Directors through the Management! to fill this need by use of the
SETTLER and frequent meetings of.the members. Perhaps the Board has failed to con
tact members in such a manner that they (the members) fully understand -what is
going on. However,' the Individual members should be reminded that the
Directors hale many;dutles connected with their Jobs that tak:s a lot of their tine
and that not only does the Board have to set policies for the guidance of the
Management and Inspect the effect of this policy, but it must also maintain mem
bership delations that will keep the members posted as well as possible. Also,
public relations must be considered as well. Then the Board has to consider plans
for the Improvement of the business and production facilities all the tine. When
you add all of this together, the sum total shows that it takes a lot of time and
thought to make a success of our organization. .
Just recently the writer has been questioned by several members on conclusions
adopted in the apportionment of the earnings of the Association for the year 1949.
FIRST: Why did the 3oard decide to pay only 20 percent In cash’ and the rest In
certificates of equity and capital- reserve certificates?
Now, the writer nay not know all the answers, but we think that the Board felt that
It would be a good idea to provide more cash for operating capital and for repairs,
maintenance, and new facilities. It would be well to advise the members that the
Co-op was- never provided with sufficient working capital from the beginning, and
the F.H.A. loan could not be used for this purpose. Therefore, we have had to get
along on Just what n ney we could gain through the profits cf our business opera
- tions. No one can run a business or farm without having some reserve capitalf
to foil bnfc-k ‘-on-- • without' getting Into a Jan once In f while, and
usually the corporation or individual finds that he Is broke when a business de
pression comes along. Repairs and maintenance have heon neglected for so long that
It will take years to get caught up. After 15 years buildings with their plumbing
and electrlcel appurtenances will have to be repaired and replaced, and It takes
• money to dc this. Then, any business of this kind must keep up with the times.
Competition will eventually take your business over unless you provide facilities
for efficient processing and capital to keep operations successful. Due to adver
se political conditions and the prejudice of certain influential people- In this
vicinity the Co-op -was never able tc borrow funds from banks in Alaska for operat
ing capital. This condition has been partly relieved by the newer banks that have
been established. However, new banks, like the rest' of us, have limited funds to
meet the demands of a new and growing country.
SECOND: ’Vhy did the employees receive dividends on their wages and salaries?
Well, the Territorial Law states that employees of Co-ops chartered under the 1933
low shall receive dividends on wages and salaries the sane as members on producer
and consumer goods. Since It is plainly stated in the low, the Board felt that It
should comply, and while it Is a debatable question as to whether this bonus Is
worth what It costs, yet progressive employers all over believe that It makes bett
er and more efficient employees.
In conclusion, members must remember that conditions that affect the business of
the Co-op are changing constantly. A few years ago the Co-op pioneered the devel
opment of the various dairy end agricultural projects In the Matanuska Valley.
Many mistakes were made, and serious difficulties were encountered In grading and
processing farm products for markets. But even though partly divided, the members
of the Co-op met the requirements of the military during the war, when they were
privileged to do so. As long as everyone had to work hard for small returns there
was sufficient unity to make their efforts successful. But when the lush war pro
fits began to roll In some of our farmers who were never used to profitable farm
operations began to get restless,, continued on page 6