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HISTORY and DEVELOPMENT of AGRICULTURAL COOPERATIVES in OHIO DISSERTATION Presented in Partial Fulfillment of the Requirements F

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HISTORY and DEVELOPMENT of AGRICULTURAL COOPERATIVES in OHIO DISSERTATION Presented in Partial Fulfillment of the Requirements F HISTORY AND DEVELOPMENT OF AGRICULTURAL COOPERATIVES IN OHIO DISSERTATION Presented in Partial Fulfillment of the Requirements for the Degree Doctor of Philosophy in the Graduate School of The Ohio State University By WILLIAM TAFT RICHIE, B. S., M. S. The Ohio State University 1958 Approved by: Adviser Department of Agricultural Economics and Rural Sociology ACKNOWLEDGMENTS I am grateful to all the people who have helped to make this manuscript possible. A special word of appre­ ciation goes to Dr. George P. Henning, of the Department of Agricultural Economics and Rural Sociology, for his guidance and supervision. I also wish to thank Dr. Ralph W. Sherman and Dr. Virgil R. Wertz for their suggestions and assistance. My wife, Sadie, has been a source of inestimable help and encouragement at all times. To her I am indebted for the typing of this manuscript. ii TABLE OF CONTENTS CHAPTER PAGE I. INTRODUCTION................................. 1 Purpose and Scope of Study.............. Previous Studies........ 6 Source of Data ..................... 8 II. ECONOMIC PRINCIPLES AND CONCEPTS OF COOPERATIVES................................ 10 III. STATE AND FEDERAL LEGISLATIONS.............. lk- IV. DEVELOPMENT OF FARMER COOPERATIVES IN OHIO.. 21 Ohio Farmers Late in Organizing Cooperatives............................. 22 Farm Organizations............ 26 Number, Membership and Volume of Business................................. 39 V. DAIRY COOPERATIVES............... 57 Early Developments.......... 57 Some Factors Affecting Development and Growth................................... 61 Background Information of Some of the Associations Operating in Ohio Milksheds. 67 Ohio Milk Producers Federation.......... 82 Statistics and Trends in Dairy Coopera­ tives.................................... 82 VI. FRUIT AND VEGETABLE COOPERATIVES............ 89 Development of Fruit Cooperatives in Ohio..................................... 90 Development of Vegetable Cooperatives.... 92 Statistics and Trends.................... 96 iii TABLE OF CONTENTS (Continued) CHAPTER PAGE VII. GRAIN AND FARM SUPPLY COOPERATIVES....... 99 Early Elevator Cooperatives........... 100 State Organization Formed.......... ... 109 The National Program................... 113 Central Grain and Purchasing Organizations................. 116 VIII. LIVESTOCK COOPERATIVES.................... 133 Early Developments in Ohio............ 133 Local Shipping Associations........... l*+0 County-Wide Shipping Cooperatives l*+9 The Need for a State Organization. l5*+ Cooperative Selling on Terminal Markets......... 159 The Decline in Shipping Associations in Ohio............ 16*+ Direct Marketing....................... 167 Consolidation of Cooperative Terminal Sales Agencies and Decentralized Marketing.............................. V/Q IX. POULTRY COOPERATIVES...................... 190 Early Developments..................... 190 Ohio Farm Bureau Federation........... 19^ Auction and Commission Pool Associations........................... 195 Sales Federation....................... 201 Statistics of Poultry Cooperatives 20U- iv TABLE OF CONTENTS (Continued) CHAPTER PAGE X. TOBACCO COOPERATIVES........................ 208 Early Efforts. ......................... 208 Organization in the Miami Valley......... 209 XI. WOOL COOPERATIVES........................... 220 Early Efforts ........ 220 Ohio Wool Growers Cooperative Association.................. 222 XII. FARMERS1 MUTUAL INSURANCE COMPANIES........ 232 XIII. CREDIT COOPERATIVES................. 2*fO The Federal Land Bank and National Farm Loan Association......................... 2^2 The Federal Intermediate Credit Banks.... 2^6 Credit Subsidiaries of Ohio Cooperatives. 2*+8 Producer Credit Associations............ 251 Bank for Cooperatives.................... 256 XIV. RURAL ELECTRIC COOPERATIVES................ 260 XV. SUMMARY AND APPRAISAL...................... 266 APPENDIX A ............................................. 278 APPENDIX B ............................................. 313 BIBLIOGRAPHY........................................... 350 AUTOBIOGRAPHY.......................................... 358 v LIST OF TABLES TABLE PAGE 1. Index Numbers of Wholesale Prices in the United States (1860-1900)................... 23 2. Financial Picture of the Ohio Farm Bureau Cooperative Association,, Inc. (1931+-1956)... 37 3. Number listed of Marketing, Farm Supply, and Related Service Cooperatives in Ohio (1913 to 195*+— 55)......................... U-0 *f. Number of Marketing, Farm Supply, and Related Service Cooperatives for Each 10,000 Farms in Ohio (1925-1955)........... b2 5. Number and Estimated Membership of the Farmers' Marketing Cooperatives in Ohio, By Specified Commodity Groups (195^-55).... *t3 6. Estimated Business in Specified Commodity Groups of Marketing Cooperatives in Ohio (195^-55).............................. *+5 7. Estimated Business of Farm Supply Cooperatives in Ohio (195^-55)........................... ^6 8. Estimated Membership of Marketing, Farm Supply, and Related Service Cooperatives in Ohio for Specified Periods (1915 to 195*+-55)........................... 50 9. Estimated Business of Marketing, Farm Supply, and Related Services in Ohio for Specified Periods (1913 to 195^-55)....... 52 10. Number, Membership and Dollar Volume of Dairy Cooperatives in Ohio for Specified Periods (1913 to 195j+-55)......................... 85 11. Trends in Dairy Cooperatives (1950 to 195^-55).• 87 12. Number, Estimated Membership and Estimated Business of Fruits and Vegetables in Ohio for Specified Periods (1913 to 195^-55).......................... 97 vi LIST OF TABLES (Continued) TABLE PAGE 13. Trends in Fruit and Vegetable Cooperatives (1950-51 to 19 5*4-55)...................... 98 I1*-. Data on 217 Farmers' Elevators in Ohio, When and By Whom Formed (190*f-192*0....... 105 15. Number, Estimated Membership, and Estimated Business of Grain Cooperatives in Ohio for Specified Periods (1913 to 195*4-55)..... Ill 16. Trends in Grain Cooperatives (1950-51 to 195*4-55)..................................... 130 17. Some Financial Aspects of Ohio Farmers' Elevators (1933-3*4 to 1953-5*0.............. 132 18. Number, Estimated Membership and Estimated Business of Cooperatives Marketing Livestock in Ohio for Specified Periods (1913 to 195*4-55)................... 165 19. Producers Livestock Association and Its Branch Markets 1957.......................... 185 20. Value and Volume of Business of the Producers Livestock Association, Columbus, Ohio (1935-1956).................................. 187 21. Number, Membership and Dollar Volume of Poultry Cooperatives in Ohio for Specified Periods (1925-26 to 195*4-55)................. 205 22. Trends in Poultry Cooperatives (1950-51 to 195*4-55)..................................... 206 23. Number, Estimated Membership and Estimated Business of Cooperatives Marketing Wool in Ohio for Specified Periods (1925-26 to 195*4-55)..................................... 228 2*4. Trends in Wool Cooperatives (1950-51 to 195*4-55)..................................... 230 25. Periods When 102 Farmers' Mutual Insurance Companies Were Organized in Ohio (1950 to 1956)............................... 23*4 vii LIST OF TABLES (Continued) TABLE PAGE 26. Number of Farmers' Mutual Fire Insurance Companies, Insurance in Force, and Costs in Ohio (1935 to 1955)................ 237 27. Federal Land Bank Loans Made and Outstanding in Ohio (1933-1956).......................... 2^5 28. Loan Business of the Producers Livestock Credit Association (1935-1956).............. 252 29. Production Credit Association Loans Made and Outstanding in Ohio (193*+-1956)............. 255 30. Number and Amount of Loans Outstanding Made by the Louisville Bank for Cooperatives to Ohio Cooperatives (1935-1956)..,......... 259 31. Loans Made and Loans Outstanding by Ohio Rural Electric Cooperatives (19*+5-1956)..... 265 APPENDIX TABLES 32. Dairy Marketing Cooperatives in Ohio, 1957....... 31^ 33. Fruit and Vegetable Cooperatives in Ohio, 1957... 320 3*+. Location of Farmers' Grain Elevator Companies in Ohio Showing Laws and Code Sections Under Which They are Incorporated and Dates of Incorporation, 1957..... 323 35. List of Poultry Cooperatives in Ohio, 1957...... 33^ 36. Farmers' Mutual Insurance Associations in Ohio, 1957................................... 335 37. Number and Location of National Farm Loan Associations in Ohio, 1957....... 3^3 38. Number and Location of Production Credit Associations in Ohio, 1957................... 3*+5 39. Rural Electric Cooperatives in Ohio, 1957....... 3^7 viii LIST OF FIGURES FIGURE PAGE I. Membership in Farmer Cooperatives and Number of Farms in Ohio, 1925-55......... *+8 II. Net Value of Farm Products Marketed and Farm Supplies Handled by Ohio Cooperatives, 1930-31 to 19 5l+-55......... 5^ III. Location of Dairy Cooperatives in Ohio, 1957... 83 IV. Location of Fruit and Vegetable Cooperatives in Ohio, 1957.......... 9^ V. Location of Farmer Elevators in Ohio, 1957..... 110 VI. Location of Egg and Poultry Cooperatives in Ohio, 1957................................. 200 VII. Location of Farmers' Mutual Insurance Associations in Ohio, 1957..... 235 ix CHAPTER I INTRODUCTION Throughout American history farmers have believed that they were victims of monopoly and were exploited by railroads, bankers, farm machinery companies, grain eleva­ tors operators, and by others with whom they did business. This was so, they believed, because they produced and sold competitively, whereas the transportation services they used and
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