THE VALLEY SETTLER is published
ovor\ Priuc.y b^ the Matanuska V a 1 -
ley Fanners * Cooperating /.3socia
tion at Palmer, Alaska
Mng. Editor: Mrs. Marie Wilson
Typist: Ina Belle Irwin
Subscription rates: $1,00 year
by mail: 1.50 year
mailed anywhere: 10^ copy
This paper is issued for the pur
pose of giving information & news
of the Hatanuska Valley Farmers*
Cooperating Association*s work,
problems, accomplishments, and r.l3c
news of local and general interest;
and to help foster the cooperative
spirit of the farmers of the Mnt
anuska Valley.
Making the Profit System Work Bet
tcr for Agriculture
Broadly paralleling the .general
expansion in cooperative purchas
ing of farm supplies, the develop
ment of Southern States Cooperative
during its fourteen -cars of oper
ations furnishes some significant
highlights in this typo of agric
ultural activity.
Organized in 1923 as the Virginia
Seed Service, it? original member
ship was Lrs than £00, The paid
in capital was ,>11,000; the volume
of first year business less than
#100,000.
bincc then the volume has increas
ed each year. During the last fis
cal period ending June 30, 1G37,
it reached #10,264,000. The effect
ive capitalization has grown to
approximately $3,000,000; the mem
bership to 70,6000, with more than
1000,000 farmers using the organiz- '
ation. i
this growth ha3 found its impetus '
in the cooperative's objective: to I
obtain bettor quality far-", supp
lies at less cost in”order that 1
the farmers who use it may make 1
more money from the operation of -
their farms. ■ c
c
We are not trying to destroy. We
have vo fight with the profit sys
tem of businoss. On the contrary
# 4
wo c \ to make the profit system
work bctter--for formers. Wo bo
iiove that our best reliance is
s •: If-help, ant1 cooperation is self
help.
Southera States now owns, controls
and operates all the plant facil
ities needed to manufacture its
own foods and fertilizers and to
process its own seeds. These plants,
9 in number, arc modern, efficient,
and strategically located to save
on transportation. The most recent
ly completed plant, at Norfolk (Vir
ginia), is the largest fertilizer
plant in the world built by a far
mers' cooperative.
The potential value of these plants
toward making farms pay better may
bo visualized by considering two
facts:
1. The increase in volume of about
four million dollars in the past
fiscal year was responsible for a
saving in manufacturing costs of
45 cents a ton, and a saving in
over- cad and order-getting costs
of 16 cents a ton; a total of 61
cents a ton.
S. The plr.nts now ownecl have the
cap!city for an annual business of
25 million dollars, and are now
doing just half that. Obviously
operating, costs should continue to
decline until these plants are
operating, at capacity*
It is interesting, to note that the
overhead and order-getting, costs
of the cooperative for the last
fiscal year made a record low of 77
cents per ton. The organisation paid
c 5/o patronage dividend on purchas
es; nut more than $100,000 into *
reserve funds; and increased its
act worth more than )3000,000 dur
!937fcll° ■riSGr'1 y°ar ending Jure 30,
Cn 1936 the Agricultural Corpora
;ion of Maryland was consolidated
;itb Southern States. Several years
)rior the purchasing services in
:orth Carolina vcrc consolidated in
PCX,' handling products manufact
ured .-r processed in Southern
'tc.tes plants, Tims the present
istributive system serves supplies
ooperativcly in 800 communities.