The Nonpartisan Leader Newspaper, February 10, 1916, Page 12

TWELVE Makes a | .The address of J. M. Andersomn; g’asident of the Egquity: Cooperative xchange, before the meeting of the stoekholders in Fargo recently. should be:of interest to every farmer in the state. : The Leader regrets that the ad- dress in full eanneot be given but a few of the important statements are . as follows: President Anderson’s- Address ' Ag stockholders- of the Egquity €o- operative Exchange, we are meeting now for the sixth time, the first meet- ing, the one at which the incorpora- tion was being effected, being held in January, 1911.° The fiscal year, which closed July 31st, 1915, was the most disastrous and at the same time the most sue- cessful in our history. Paradoxical as- this may seem; it is nevertheless: true. As indicated' by the balance sheet, the year was disastrous; but considered in the light of increased efficiency, increase in the volame of business, the amount of opposition that was overcome, and the general upbuilding of the movement, the year was a phenominal suecess: Deficit Wiped Qut The balance sheet which will be placed in your hands today shows that our deficit, or capital impair- ment as of August 1st, 1914, was $10,105.55, while the capital impair-" ment as of August 1st, 1915, was $35,- 760.06, an increase of $25,654.51. The loss so sustained is accounted for as follows: During this year two law- suits were brought against the cor- poration at the instigation of the Minneapolis Chamber of Commerce. These suits cost us over $8000.00 to defend. We sustained a loss of $5000.00 in the handling of the busi- ness. To offset or overcome the mis- representations made by the Minne- apolis Chamber of Commerce and their allied interests, we spent near- ly $6000.00 in newspaper advertising. Our soliciting expenses amounted to over $5500.00. Growth Is Phenomimal As referred to above, the growth of the corporation has been phenom- inal. During the fiscal year which ended July 31st, 1918, which was our first year in business, we handled, | | transacted. PEDPDDDBBDPIBOPIPI PR obd b f B dF eSS Johd bbb ddddbddob ORI R FPb S PP 2 DRSS S Pd PRSI ISP RIEIRIEPD THE NONPARTISAN LEADER , ! ble Report of Equity President J. M. Anderson of the Eqaity €ooperative Ex- change Has Great €onfidence for Its Future Success--- An Interesting Sketch of the President’s Life---A Prod- uct of the Great Northwest. about 1,800,000 bushels of grain. During the second year we handled 3,000,000 bushels. For the fiscal year closing July 38lst, 1915, we handled 5,000,000. bushels. The total amount of grain handled up to August 1st, 1915, was therefore 9,800,000 bush- els. From August 1st of this fiscal year to December 3l1st, five months, we have handled 8,000,000 bushels. Comparative ncome A comparisen. of our income is equally encouraging. During our first yeéar in business, our gress income was $8,331,83. The second year our gross income was- $22,942.95. For the fiseal year ending July 31st, 1915, our gross income was $42,704.563; while our income from August 1st te De- cember 31st of this year is $83,473.16. Your board of directors is- pleased to" report that the deficit or capi- tal impairment, which on the first of August. was $35,760.06, has- now been completely wiped out. After charging off in addition to the capi- tal impairment, $8,177.54, we still have a net surplus of $9,769.14. Our net profits during the five months period in question are $53,706.74. A word, in regard to the capital stock. Our paid up capital on Aug- ust 1st, 1912, was $14,600.00; August 1st, 1913; $16,200.00; August 1st; 1914, $24,700.00; August 1st, 1915, $42,- 939.75; our paid up capital on Decem- ber 31st; $86,327.65. The. Qutfet for Grain Besides- soliciting grain shipments, selling stock and promoting the re- ceiving end of the business, we have also - developed a better outlet for the grain received. On August 3lst, of this year there were but 27 buy- ers-at our St. Paul office. There are new 53 different buyers purchasing grain from us. Finanecial Support Our financial support has also been increased very substantially. On August 1st, there were but five banks dvertiseme IN the first of February last, the Equity Cooperative Exchange paid a cumulative dividend of 8 per cent. on all capital stoek issued up to August 1st, 1915: This is the first dividend that has ever been paid by this corporation.- It was all earned from August Ist, 1915, to Decem- ber 3lst, a period of five months. Our total net profit during this period was $53,000.00, all made in the handling of abeut 8,000,000 bushels of grain. Our paidup capital ‘August 1st was but $42,939.00. This shows that there is-money in the grain commission. business, and that it behooves the farmers to enter this business that they may obtain the enormous- profits to be derived therefrom for themselves. rediscounting Equity securities, or im other words. financing this corpora- tion. There are now fourteen banks that have accepted our securities for rediseount, and are furnishing the finances on which to do business. In this connection, permit me to state that we have reason to believe that financial assistance can also be se- cured, during the coming years, from banks in Chicago; as we have made inquiries in this direction and the replies- received have been very en- couraging. The Bismarck Experience Last February your officers ap- peared together with the North Da- kota Society of Eguity delegates which were then assembled im Bis- marck, before the state legislature, - petitioning it to appropriate funds for the construction of a_ terminal elevator for the state of North Da- kota, in the city of St. Paul. We asked that $75,000.00 be appropriated. This amount together with the special fund of $50,000.00 which had already been set aside by the state for ter- minal elevator' purposes, would have been sufficient to have built an ele- vator of at least 300,000 bushels: ca- paeity. This; however, the legis- lature refused to-do. Your Beard of Directors: accordingly began a cam- paigne of selling stock for treminal elevator purpeses. The Terminal Elevator The city of St. Paul has granted ‘a site which is- located on the Mil- waukee road, -on what is known as: the upper levee of St. Paul, this be- ing on the banks of the Mississippi river. We have had plans for an ele- vator completed, providing for rein- forced concrete and steel construc- tion. The workhouse will be equipped: for the handling of one half million bushels. The storage capacity in the workhouse' itself will be about 80,000 - bushels. We planned to construct The Equity Cooperative Exchange is a farmers’ corporation, composed of farmer stockhold- ers and managed by a Board of Directors; all of whom are farmers. ulative dividend of 8 per cent and no more. The balance of the net earnings of the: corperation are: distributed ameng its patrons; and the amount each receives is determine The Exchange affords the farmers an oppertunity of marketing: their grain ceeperatively; enabling them to do-om the terminal grain markets what they have dome through their elevators in the loeal markets, namely to better the prices on grain. In this way the farmers can help them- - selves;. by consigning their grain to the: Equity Cooperative or Superior, Wisconsin. The time to-do-that is-new. , Minn. and Superior, Wis. be to Its: capital stock draws a cum- d. by the amount: of business Exchange at either St. Paul, Minnesota, B xchange storage tanks for the. storage of at least 400;000 bushels: A’ New: Era Is Begun With the favorable decision of tha: - court at Fargo last summer, a new era in the life of your cerporation was begun. Public opinien, whick prior to that deecision was not very: pronounced one way. or the other, now turned overwhelmingly in our favor. The Chamber: of Commerce forces ceased their open attacks and massed charges, and. settled down to what may be termed ‘“trench war- fare.” This left us more free "to build up the business. The inerease in the volume of grain received made it necessary to re- organize and increase our office. Hence, since the first day of August, our help has been doubled. We now employ eighteen at the St. Paul offiee; and six at Superor; which together with two seolicitors m8ke a- total of 26 that are steadily empleyed: in the work of the corporation. Problems of the Future. %ioblems in. the future will anch out, by establishing offices: in other grain markets, so as. to be able to render the best of serviee to our shippers. Your directors-have in mind now the open- ing of offices in Milwaukee, Wis., Chi- cago, IN., and perhaps in St. Louis, Mo. A large amount of our grain has this year been seld at. these peints, by brokers. who have bought. it in St. Paul. We believe that if we have representatives of our own on these markets, the benefits- whieh now go to. brokers can be returned direct. to the shipgers of grain. Ulti- mately, we must become exporters of grain, establish our own: office at Liv-- erpool, and deal directly with the consumers of Europe. Selling Stored Grain We should: also prohibit by legis~ lation the selling of stored grain. At present, grain stored'by the farm- ers is: permitted to be sold by those aceepting it for storage. Under this system, stored grain is placed on the market. It may be into flour for comsumption. In either event;. it has left the control of those whe have produced it. By prohibiting its Onr R A A L