The Southwestern Historical Quarterly, Volume 44, July 1940 - April, 1941 Page: 36
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Southwestern Historical Quarterly
claimed for the Grangers that they were successful in any of
their undertakings at cooperative manufacturing.
In 1875, Master Lang, acting upon the instructions of the
State Grange, endeavored to cope with the marketing prob-
lems of the Patrons by appointing John M. Crockett of Gal-
vestion as purchasing agent and G. A. Forsgard of Houston as
marketing agent. This system, however, did not prove com-
pletely satisfactory. When Patrons applied the Rochdale plan to
cooperative stores, they found a more effective scheme to elim-
inate the middlemen. Stores established on the Rochdale plan
secured charters from the state. The stockholders elected a
president, a board of directors, a treasurer, a secretary, and
a business manager. The net profits of all the business trans-
acted, after paying all the expenses of management, were dis-
posed of at the semi-annual meetings of the board of directors:
shareholders received ten per cent interest per annum on paid-
up stock, the remaining net profits were divided pro rata among
the stockholders and Patrons not stockholders, based upon the
amount of business that they had contributed; stockholders
received back the full amount of profit made on the business
that they had contributed, Patrons not stockholders received
one-half. Profits arising from the sales furnished by non-Pa-
trons, and one-half of the profits on that of Patrons not share-
holders, was divided annually pro rata among the stockholders
based upon the number of paid-up shares. The prices of goods
at cooperative stores were usually the same as those charged
by other business houses in the same area. With each purchase
a Patron received a small certificate entitling him to the profit
made on the article that he bought. According to the Rochdale
Plan business was to be on a purely cash basis. By the middle
of 1875 there were approximately 1,000 local Granges and prob-
ably more than twenty cooperative stores.
As a whole the Patrons were successful with their stores.
Each year, even during the panic of 1878 and 1879, the out-
look appeared brighter until the early eighties. Some of the
associations increased their stock as much as 400 per cent within
South Carolina, and Georgia were being successfully operated at this time.
At Cuero, Texas, C. L. Stadtler and Co. operated such a mill profitably.
Another mill at Tyler and the woolen mills of New Braunfels were also
in successful operation. Patrons of Husbandry, June 18, 1881.
'oProceedings of Texas State Grange, 1875, p. 29; 1878, pp. 23-24.
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Texas State Historical Association. The Southwestern Historical Quarterly, Volume 44, July 1940 - April, 1941, periodical, 1941; Austin, Texas. (texashistory.unt.edu/ark:/67531/metapth146052/m1/44/: accessed July 20, 2017), University of North Texas Libraries, The Portal to Texas History, texashistory.unt.edu; crediting Texas State Historical Association.