Correspondence.
Page 18
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Is Olympia Large Enough ?
The E,iitor,"Die COMMERCIAL MOTOR.
Sir :—I am ut opinion that, with the rapid increase of ilie` motor trade, and the number of fresh firms, two shows are inevitable in the future, and probably necessary next year, unless a larger hall can be found to accommodate the exhibition. It would undoubtedly be better if both sections could be advantageously displayed under one roof, but, as this seems a difficulty, restrictions ought Lo be made that commercial and public service vehicles should be rigorously excluded from the pleasure show, and vice versa.—Vinirs
For Dennis Bros., Ltd.,
td Guildford. R. DENxis.
Agricultural Co-operation.
The Editor," THE COMMERcIAL 3.1oToR."
Sir :—I notice that the word " co-operation " is being freely used in reference to various proposals which have been put forward of late for combination amongst farmers and agriculturists. While I am glad to see that the idea of combination is making so much headway amongst farmers, and that it is receiving so much encouragement from the Press, I am compelled to protest against the misuse of the word " co-operation " and its application to undertakings which are not truly co-operative. The term " agricultural co-operation " only applies strictly to those forms of combination advocated by the Agricultural Organisation Society, and it is important to us that agricultural co-operation should not be brought into disrepute and our movement compromised by the failure or indiscretions of undertakings to which the term " cooperation " is wrongly applied. Many of the undertakings now proposed are, indeed, on utterly unsound lines, and for the very reason that they are not co-operative, will either fail altogether or will not succeed in accomplishing the beneficial results which are expected front them.
The best way to form an agricultural co-operative society is to register under the Industrial and Provident Societies' Act, and so to frame the rules that the amount of the nominal capital is not fixed; that shares can be allotted at any time to any farmer applying for them; that the interest payable upon the capital is limited to a small percentage, and that the bulk of the profits is divided amongst the members as a bonus upon the amount of their sales through, and purchase from, the society.
A limited liability company in which farmers take shares may be a form of combination, but it is not co-operation, and, as a farmers' combination, is likely to be short-lived. If the shareholders hold shares in approximate proportion w the amount of their dealings with the company, the interest on their .shares is roughly equivalent to a 'bonus on their transactions; but this is a condition which could hardly exist even at first, and if it did exist would probably .soon cease to do so. Some of the members might leave the district and cease to have dealings with the company, when they would become mere shareholders drawing profits front the business done through the company by the other farmers. Moreover, if the profits were at all large, the shares in the company would rise in value, and some shareholders would dispose of their shares to persons other than farmers, who would then likewise draw profits which should go into the farmers' pockets. Again, if, after the company were formed, a farmer wished to obtain shares, he might have to purchase them at a premium, and pay so highly for them that the dividend would merely represent interest at ordinary investment rates on the money which he had paid for them. So in a very few years such a company would become an ordinary trading concern, the objects of which would not be to benefit the farmers, but to make the biggest possible profit for the shareholders, and it would then be no better than any other middleman.
A true co-operative society is very different from this. By the limitation of the interest on the share capital (usually to five per cent.) it is prevented from becoming a mere investment for capitalists. 'Whatever profit is made, over and above the five per cent. charged for intereFt on capital, is divided among the farmers in proportion to the trade they have done through the society in the shape of a bonus at the end of the year. The fact, again, that the amount of the share capital is not fixed, and that fresh shares may be allotted at arty time on application, prevents the shares rising in value, and enables any farmer in the district to become a member without paying heavily for the privilege.
I might enumerate many other advantages which cooperative societies such as I have described enjoy over the ordinary limited liability companies, but my purpose is to show what is true co-operation as applied to agriculture. It is rll the more necessary that this should be clearly understood, since it is becoming generally admitted that cooperation is the form of combination which is likely to do most for the regeneration of agriculture. One deputation of farmers after another has visited Denmark, and has returned convinced of the necessity of adopting Danish methods in this country, but this can only be done in the manner which I have indicated.—Yours faithfully, J. NUGENT I IARRls, Secretary of the Agricultural Organisation Society. Dacre House, Dacre Street, Westminster, London, S.W.
Appreciations a our First Volume.
The Editor, " THE COmmERCIAL MOTOR.'
Sir :—We thank you for the bound volume of " ThE ComMERCIAL MOTOR received yesterday. It is a handsome volume and a valuable chronicle of progress in mechanical transport during the past six months. We have no doubt it will prove very useful to LIS for reference purposes.—Yours
faithfully, For Argyll Motors, Ltd., ALEX. (OVAN (Managing Director). Hozier Street, Bridgeton, Glasgow.
December 9th, 1905.
Sir :—We beg to acknowledge receipt of the first volume of your valuable journal, which came to hand a day or two back. This work will be of great value to us for reference in all matters appertaining to commercial vehicles. We have greatly appreciated the series of special issues you have at intervals published. There is little doubt that these will tend to draw many users of horse-drawn vehicles into the motor-traction world.—Yours faithfully, THE LACRE MOTOR CAR CO., LTD.
I.ondon, W., December 9th, 191)5.
Sir :We have received the bound volume of " THE COMMERCIAL Moron." It is a volume which, we have no doubt, has done a large amount of good to the commercial vehicle industry in this country. Being one of the earliest to take up the subject, and being run on such sound lines it must make for itse:f a large field of usefulness. We take this opportunity of wishing you every success in the future.— Yours faithfully, For the New Arrol-Johnston Car Co., Ltd. Joux S. NArma (Managing Director). Underwood, Paisley.
December 8th, loos.
Sir :-.The copy of the bound edition of your paper for 1905 duly to hand. We consider that not the least of your efforts is your advocacy of the tried steam motor wagon, as compared with the more or less untried petrol lorry for heavy loads. Nothing can be more in the interest of the buying public, and on the general revival of trade. There is no doubt there will be extensive buying of steam motor wagons.—Yours faithfully, For E. S. Hindle," and Sons, STANFORD.
Bourton, Dorset.
December 8th, 1905.