ntly these men would combine to lower their prices and, by a
process familiar in the history of business competition, "freeze out"
the cooperative store, after which they might restore their prices to
the old levels. The farmers seldom had sufficient spirit to buy at the
grange store if they found better bargains elsewhere; so the store was
assured of its clientele only so long as it sold at the lowest possible
prices. Farmers' agencies for the disposal of produce met with greater
success. Cooperative creameries and elevators in several States are said
to have saved Grange members thousands of dollars. Sometimes the state
Grange, instead of setting up in the business of selling produce, chose
certain firms as Grange agents and advised Patrons to sell through these
firms. Where the choice was wisely made, this system seems to have saved
the farmers about as much money without involving them in the risks of
business.

By 1876 the members of the National Grange had begun to study the
problem of cooperation in retailing goods and had come to the conclusion
that the so-called "Rochdale plan," a system worked out by an English
association, was the most practicable for the cooperative store. The
National Grange therefore recommended this type of organization. The
stock of these stores was sold only to Patrons, at five dollars a share
and in limited amounts; thus the stores were owned by a large number
of stockholders, all of whom had equal voice in the management of the
company. The stores sold goods at ordinary rates, and then at the end
of the year, after paying a small dividend on the stock, divided their
profits among the purchasers, according to the amounts purchased. This
plan eliminated the violent competition which occurred when a store
attempted to sell goods at cost, and at the same time saved the
purchaser quite as much. Unfortunately the Rochdale plan found little
favor among farmers in the Middle West because of their unfortunate
experience with other cooperative ventures. In the East and South,
however, it was adopted more generally and met with sufficient success
to testify to the wisdom of the National Grange in recommending it.

In its attitude toward manufacturing, the National Grange was less sane.
Not content with the elimination of the middlemen, the farmers were
determined to control the manufacture of their implements. With the
small manufacturer they managed to deal fairly well, for they could
usually