|HISTORY OF THE CORNWALL CHEESE AND BUTTER BOARD|
|THE ORGANIZATION OF THE FACTORY SYSTEM|
|By J. A. Ruddick|
Dominion Dairy and Cold Storage Commissioner
|J. A. Ruddick|
Dairy and Cold Storage
Commissioner of Canada
HE first cheese factories were purely proprietary, owned by individuals in some cases, and in others by partners or associates. Later on, joint stock companies were organized for the purpose of engaging in the manufacture of cheese or butter. The capital in these so-called cooperative companies is divided into small shares of $5 to $25 each, with a view of distributing it among the "patrons" as the milk suppliers are called in Canada. In many cases, non-suppliers ("dry" shareholders) were encouraged to take shares for the sake of the assistance thus secured in raising the necessary money. In such cases, it was, and is, usually necessary to provide for dividends on the paid-up share capital. In some companies each share carries a vote, and in others the rule is "one man, one vote," regardless of the number of shares held. There is no uniform plan followed.
In practically all forms of organization there is a fixed charge for manufacturing which will vary according to the size of the factory and in different parts of the country. This charge, whatever it may be, gives the proprietor his revenue and the joint stock company its working expenses and dividends, if any are paid. There are some joint stock factories where no dividends are paid, and in such cases the manufacturing charge is fixed each year with a view of meeting current expenses only. Should there be either a deficit or a surplus it is carried over to the next year.
It has never been the practice at cheese factories to purchase the milk outright. The product belongs to the milk suppliers and they receive, usually once or twice a month, the full value of the cheese, less the manufacturing charge. A salesman is appointed by the patrons. In the proprietary factories the owner is usually entrusted with that duty, but not always.
Every cheese factory organization contains the germ of co-operation, but the true spirit of association is very generally lacking, except in a comparatively few instances. It is unfortunate that it is so, but in this respect the dairymen do not differ from the farmers engaged in other lines. Co-operation, as a principle, has not yet been received with much favour by Canadian farmers.
The proprietary factories greatly outnumber the so-called co-operative establishments, but many of the largest and most successful factories are co-operative. The cheese factories in Western Ontario are very much larger, on the average, than those in other parts of the country.
In the extreme eastern part of Ontario and in Quebec, where small factories are the rule, many of those who have engaged in cheese manufacturing as a business, have found it expedient to operate more than one factory. Out of this condition, there grew up in the early eighties large combinations of factories under one management. The most celebrated of these was the "Allengrove" Combination, owned by Mr. D. M. Macpherson, of Lancaster, Ontario. Mr. Macpherson started
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