REPORT 
 
 -OF- 
 
 J. H. KOEHLER 
 
 Acting President 
 
 -OF- 
 
 AMERICAN 
 
 GINSENG GROWERS' 
 
 ASSOCIATION 
 
 -TO THE 
 
 Ginseng Growers of America 
 
"&£ 
 
 <&<? 
 
 05 
 
 To the Ginseng Growers of America : 
 
 Some time ago, you were sent literature regarding the AMERI- 
 CAN GINSENG GROWERS' ASSOCIATION. You were sent this 
 either upon your own request or some mutual friend asked us to send 
 it to you. You were also sent an application blank and your member- 
 ship was solicited. Not having received your application for member- 
 ship, or perhaps not even an acknowledgement of receipt of the liter- 
 ature we naturally wonder and ask, "Why not ?" 
 
 Perhaps the literature did not reach you. If such is the case, 
 please advise and we will be pleased to send you some more. 
 
 If the literature has reached you, then why have you not sent 
 in your application for membership ? Certainly it can not be because 
 you do not favor co-operation as outlined in the literature. 
 
 If the plan of organization as outlined in the literature does not 
 seem to meet with your approval, which can hardly be possible, read 
 the literature once more. Read it not with the mind of an outsider, but 
 place yourself in a position as if you were already a member and see 
 if the points, that were not to your liking, will not become clearer. 
 
 The plan of organization has been worked out by your repre- 
 sentatives with the greatest of care ; it represents years of study by men 
 directly interested — growers — and it meets with the hearty approval of 
 the three existing state associations — Michigan, Wisconsin and Minne- 
 sota — as you will see by the following : 
 
 "To the Ginseng Growers of America: — 
 
 This is to inform you that the American Ginseng Growers' 
 Association was organized at a meeting of delegates, the author- 
 ized representatives of the three live and active State associa- 
 tions, with a few individual growers or "self-appointed" delegates 
 from other parts of the country. 
 
 The meeting was called by unanimous vote of the Michigan 
 State Association at the Summer Meeting, Aug. 2 and 3, 1916. 
 The form of organization adopted was supported and approved 
 by the authorized representatives of all the three State organiza- 
 tions. It had been discussed in open meeting in two of the associ- 
 ations and was the plan favored by practically all of the members; 
 in fact, no descending vote was heard. It has been ratified by 
 all of the three State associations. 
 
 It is not the work of any one man or group of special 
 interests, but of three strong State associations acting through 
 their chosen and instructed representatives. As these three 
 States are the only ones organized at the present time, the Ameri- 
 can Ginseng Growers' Association represents all of the organized 
 growers in America. These three organizations represent small 
 as well as large growers, and all have equal voice, the small 
 growers, if any, predominating, as they are the most numerous. 
 The president of the American Ginseng Growers' Association is 
 not a "large grower." The American Ginseng Growers' Asso- 
 ciation is organized under the law for co-operative associations 
 of the State of Wisconsin. The laws under which it is incor- 
 porated provide full security for the rights and interests of 
 every member, large or small. The men in charge of the affairs 
 
of the Association are not acting on their own initiative, but 
 were chosen by the representatives of the ginseng growers and 
 assigned to the duties they are performing. They are conscien- 
 tious, honest men, as well as men of business ability. The By- 
 Laws of the Association and the law under which it is incorporat- 
 ed contain certain provisions under which they can be "recalled" 
 or removed by the members if they prove unsatisfactory. As no 
 National Association can succeed without the support of these 
 three State Associations, we advise and urge you to join and 
 support the organization they have formed and ratified. 
 
 t 
 
 Yours truly, 
 
 Michigan State Association cf Ginseng Growers, 
 By (Signed) Emer L. Wilder Secretary. 
 
 Wisconsin Ginseng Growers' Association, 
 By (Signed) C. S. Leykom, Secretary. 
 
 Minnesota Ginseng Growers' Association, 
 By (Signed) F. C. Erkel, Secretary. 
 
 The above should be sufficient evidence and remove all doubt 
 from the mind of the most skeptical. Besides, the association now 
 has a membership of 103, as you will notice from the enclosed circular. 
 All of these members approve of the form of organization, are heartily 
 in favor of the general movement and recognize the fact that it is the 
 only way out of our present deplorable condition. 
 
 To further strengthen the position of our association, we will 
 give you a synopsis of what took place at the annual meeting of the 
 Michigan State Association of Ginseng Growers, convened at Lansing, 
 Mich., January 24-26, 1917. 
 
 Pres. C. W. Vining, in his annual address, said, "There are other 
 things of great moment before us today — the national association," 
 and mentioned that Mr. F. B. Olney and J. H. Koehler were present 
 and could tell the meeting more about it. After which a general dis- 
 cussion followed : 
 
 (Owing to its length, we will not quote literally, but will 
 cover only the principal points of what each person said. How- 
 ever, as through the courtesy of Mr. F. B. Olney, our association 
 has been furnished with a complete copy of the discussion, 
 verifications can be made at this office.. — J. H. K.) 
 
 Secretary Wilder: One thing I had in mind, in the National 
 movement, is securing the co-operation of growers in handling the 
 disease situation. If we could secure co-operation, we could handle 
 this problem to better advantage. 
 
 Mr. Devlin: If we are going to accomplish anything in this 
 National association, we have to send a good, live man to China — a 
 good man like — (speaker mentioned a prominent New York middle- 
 man.) He has been dealing with Chinese all his life. 
 
 Secretary Wilder:- I understand the National association will 
 be a great help to us. 
 
 Mr. Pen Kirk :_ Mr. Kirk said it seemed to him, that the Na- 
 tional association could take up the goldenseal proposition much easier 
 for the reason that it is all of one grade, but expressed doubt as to its 
 handling ginseng, for the reason that the Chinese require different 
 roots at different places. He then told about his experience "in mark- 
 
et" and how the New York buyers had treated him rather cool on ac- 
 count of what he had written in the "J ourna l" regarding the National 
 Association. 
 
 Mr. F. B. Olney:- Mr. President, Gentlemen, — When a man 
 gets paid off, he is supposed to be discharged. I got my pay last night. 
 My report is right here, it consists of the prospectus of the AMERI- 
 CAN GINSENG GROWERS' ASSOCIATION, the By-Laws and the 
 few comments that I made upon it. 
 
 Now, gentlemen, we have all been a little bit discouraged at the 
 price we have been receiving for ginseng. Perhaps it is our own fault ; 
 we have not been, some of us, in a position to exercise the required 
 ability necessary. There are two things that are necessary to make any 
 kind of business a success, whether it is operated by an individual, by a 
 partnership, by a corporation or any other form. These two are suffi- 
 cient capital and good management. The lack of either one of these 
 will put you down and out, and a part of good management consists 
 not only in caring for the product, but in the proper selling of it. 
 
 I believe that there is a market for any and all of the ginseng 
 that we are growing, if we can find it. There is for most anything that 
 is made. As an individual, we can none of us go very far, the ex- 
 pense would be too great. If we can get into some kind of agency or 
 organization, I believe that we can, in connection with proper study of 
 the conditions of the market, find out where one kind of root is desired 
 and where another kind is desired, and in that way place our products 
 where they are wanted. 
 
 The company, that I am interested in, has got at the present 
 time one thousand pounds of ginseng. For me or my partner to go 
 around and find a market for the different kinds of root that we have, 
 would use up more than we could get out of it, in expense. If, on the 
 other hand, we could club together with fifty other men, who have 
 roots to sell, and send a man who had some knowledge of marketing 
 conditions, he could undoubtedly dispose of our stuff, and it would not 
 cost as much as if we did it ourselves ; in other words, by dividing it, — 
 the expense of the sale, — among the fifty, it would not be a very bur- 
 densome charge. One of the greatest expenses, in my idea, at the 
 present time is the high cost of selling our commodity. It might sur- 
 prise you to know that the cost of selling an article of ordinary manu- 
 facture, is equal to what it costs to make it. 
 
 Now then, this organization is called to your attention. It is 
 not an organization antagonistic to this body. There is no intention 
 of doing away with the Michigan Ginseng Growers' Association or 
 any other State Association. It cannot take the place of them ; it wants 
 their support and it wants to work with them. It has a field of its own. 
 
 As one of the delegates at the Chicago meeting, I will say that 
 the men were quite unanimous ; they did not want to form any antago- 
 nistic organization, they did not want an aggressive one. They did 
 want something that could handle our output. Your committee has 
 done the best it knew how ; it is now up to you. The thing cannot 
 be carried out unless it has financial support and I hope that each one 
 of us present, will come forward and give us strong financial support. 
 I think a careful study of the By-Laws will convince you all that it is 
 
put up on a fair, square basis, that everybody's interest will be looked 
 after equally. Those of us who were at the meeting subscribed for a 
 small amount of stock. I, for one, took five shares, ***** $50 worth. We 
 did that for the purpose of paying the informal expenses. 
 
 Now, I feel we have to have such an organization as this, or 
 else we will have to quit, and I expect to take more stock. I expect to 
 put $500. into it, if necessary ***** not because I think it is going to pay 
 any dividends, — I am not looking to that part of it, — but I think it 
 will place the selling of the product in such shape that we will have 
 less trouble and we will realize more our of it. I hope, that you gentle- 
 men, who have had this correspondence, have looked it over carefully, 
 and if so, you have undoubtedly made up your minds. If there are 
 any questions, we will answer them the best we can. 
 
 Mr. Dressle:- What tendency do you think the joining of this 
 National Association will have to break up our State Associations ? 
 
 Mr. Olney:. I should seriously hope, that it would have none, 
 that, if anything, it will aid the State Associations. Your State 
 Association is a very necessary proposition. 
 
 Mr. Dressle:. I have not received this paper. My impression, 
 that I got through letters and one thing and another, was, that in order 
 to be a member of the National Association, a man ought to be a mem- 
 ber of a State Association. If so, that would keep our State Associa- 
 tions going and there would be a tendency to feed our Associations in 
 that way. 
 
 Mr. Olney :_ That would hardly be possible, to make that limita- 
 tion, as there are only, I think, two or three States that have a State 
 organization. 
 
 Mr. Dressle:. I thought there were fifteen or twenty. 
 
 Mr. Olney :_ There are growers in fifteen or twenty. If there 
 are any more associations than that, they are hardly alive. 
 
 Mr. Custer:- We might have the headquarters of the Associa- 
 tion over here. 
 
 Mr. Olney.- That is a very good suggestion. When I started 
 for Chicago, I thought perhaps we might have it organized under the 
 laws of Michigan, but there were some questions that came up and 
 we couldn't just see how it could be worked just that way. When I 
 came to find out what the law was in Wisconsin, I saw, that several 
 provisions were better there. 
 
 I will tell you one or two little points. We didn't want a thing 
 put up where it would get into the control of one or two men. It was 
 not a stock jobbing proposition, and it is hard to control in an ordi- 
 nary corporation with the ownership of stock. Under the laws of 
 Wisconsin, we were able to put in this section, No. 6 of Article III : 
 "At any regular meeting, or at any regularly called special meeting of 
 the stockholders of this Association, each stockholder, irrespective of 
 the number of shares of capital stock he may own, shall be entitled to 
 one vote only." So that if you own one share of this stock, you have 
 one vote, and if somebody else owns one hundred shares, he has one 
 vote. You are on an equal basis as far as the voting is concerned. 
 A great many times some people are afraid that some few will go 
 around and buy up the controlling interest, and use it for their own 
 
purpose. That is made absolutely impossible in this legislation. 
 
 Secretary Wilder:. I have studied the law for co-operative as- 
 sociations in Michigan, Illinois and Wisconsin. That provision, in re- 
 gard to one vote for each man, is common to all co-operative associa- 
 tions in all of the States in which I have studied. I think, wherever 
 they have a special law for co-operative associations, they have that 
 provision. But there are provisions in the Wisconsin law that I think 
 make it the best for an incorporation of a National organization. For 
 a small, local organization, our Michigan law would be best, but for a 
 National organization and a large one, such as we would have to have 
 for this business, the Wisconsin law is undoubtedly the best thing, 
 and I do not believe we could form a successful co-operative associa- 
 tion under the Michigan law for a large National organization. 
 
 Mr. Kirk : I will be glad to hear from Mr. Koehler on the sub- 
 ject before I say anything. 
 
 Mr. Koehler: I prefer to hear from Mr. Kirk first. His name 
 appears next on the program. 
 
 Mr. Kirk: Mr. Kirk said in effect that he had been kept in 
 ignorance as to the progress of the Association ; had been told by Mr. 
 Koehler not to publish certain matters regarding the Association but 
 which he thought should be published in his journal, for the New York 
 buyers had told him, that they were getting everything regarding its 
 progress. He said further, that he had received letters from Canadian 
 growers, wanting to become members, but that he did not know how to 
 answer these letters, for he did not know anything more about the 
 Association than a hog further than reading the By-Laws. 
 
 Mr. Koehler: You mustn't believe everything that some of the 
 New York buyers tell you. 
 
 Mr. Kirk : Mr. Kirk told more about his sixteen days "in 
 Market ;" that he had seen samples come in from executive members 
 of the association (feeling apparently that he had been doing under- 
 handed work, but when he found that members of the association were 
 also selling, he felt relieved and justified in selling his own ginseng as 
 well as that of others. — J. H. K.) Mr. Kirk then said, that there were 
 1353 buyers in New York and referred to them as a disease that the as- 
 sociation would have to fight ; that if he could have gotten $8.00 per 
 pound, he would have been glad to take it, but that the buyers said no to 
 him and told him, "Send this stuff in through the regular way. We can't 
 pay you the price unless you send it in through the regular way." 
 But he said, "We have to recognize these buyers in some way, they 
 are hunting the market for us every day. ***** We have to deal with 
 them. *****They have men in their places of business that are Chinese 
 and we can't ignore those men." The Chinaman would not buy from 
 him ; they told him, "We cannot buy except through the regular chan- 
 nels." Mr. Kirk said, "You cannot sell to a Chinaman to save your 
 neck." 
 
 Mr. Kirk admitted that the association is a good thing, saying, 
 "The buyers will buy from them as quick as they will from an individ- 
 ual, rather quicker, because they like to buy in large lots, they will 
 give you a better price." He admitted further, that the centralized 
 brotherly system of the Association in sticking together was an advan- 
 
tage that could not be gotten rid of (apparently reerettine this fact. 
 —J. H. K.) S 6 
 
 Mr. Kirk indicated further that the buyers had a system or an 
 agreement that they would not overbid each other, for all offers for 
 his samples were exactly alike, no matter where he would go. (They 
 apparently saw him coming. — J. H. K.) And he indicated that the 
 association will have to sell to the same New York buyers, just as the 
 individual. 
 
 Mr. Kirk said further, "This matter of one member having one 
 vote doesn't amount to anything. ***** Your officers are elected. ***** 
 What is the voting for? ***** When there is a man to be elected, he is 
 elected ; it is done somehow or other, and so the voting question doesn't 
 amount to anything." (He ignores the fact that the Directors are only 
 servants of the members of the association and that they are not fix- 
 tures but subject to be removed by a majority vote, if they do not do 
 their duty satisfactorily. — J. H. K.) 
 
 Mr. Vining : What is your idea of our ability to get right into 
 the Chinese market? 
 
 Mr. Kirk : I don't believe we will ever be able to get into China 
 at all, and Mr. Koehler will agree with me. ***** 
 
 Mr. Dressle: When you had those samples and went to sell 
 your seng, I think you said they were marked by number ? 
 
 Mr. Kirk : Yes ; no names to them at all. I had the names 
 in my pocket. 
 
 Mr. Dressle : I have done similar things in my nursery business. 
 Now, have you tried changing those numbers to find out by doing that 
 whether or not this thing might not have been telephoned from one to 
 the other? 
 
 Mr. Kirk : Oh, no, they never saw those numbers. (Must have 
 been blind.— J. H. K.) 
 
 Mr. Dressle: Lots of times those things are understood and 
 passed along by telephone in a few minutes' time. If you changed 
 those numbers around, you might find out whether they were doing 
 that or not. 
 
 Mr. Kirk: There was only one case of that kind. I sent this 
 man out to find a market, and he had one peculiar sack that was colored 
 differently from the others and he had it down in a Chinese store. There 
 happened to be a buyer, and when that buyer came to my room and 
 looked at the sample, he said, "I saw that sack down in Chinatown yes- 
 terday." That was the only instance of that kind. I had every tag 
 sewed to the bottom of my sacks so that nobody could have seen it. 
 (Of course, it was impossible to see the bottom of the sack. — J. H. K.) 
 
 Mr. Dressle : So you made sure of that point ? 
 
 Mr. Kirk : Yes. I was very careful not to let them get onto 
 that part of it. 
 
 Mr. Goodspeed : Is it your opinion, from what you saw there, 
 that there is a strict combination between the dealers? 
 
 Mr. Kirk : There is a unity of understanding between them. 
 One won't bid against another, he won't go into another one's place of 
 business to buy. 
 
 Mr. Goodspeed: But supposing you went to one dealer and 
 
failed to make a sale, have you any idea that another dealer would 
 be governed entirely by the first dealer's offer. 
 
 Mr. Kirk : Not unless he told him and described me secretly. 
 
 Mr. Goodspeed : I never have believed that there was any com- 
 bination among the dealers. There is sharp competition. 
 
 Mr. Kirk : — Seng was down from 80c to a dollar a pound when 
 I was to the market, except the last day, it bid up a quarter more. ***** 
 I went to a place to bid a man good-by, and he said, "Kirk, I am feeling 
 pretty well today ; it is up a little today. — But," he says, "there is no 
 day but what I make some money in here. *****" (Of course, he had 
 reasons to feel good, for he was that day turning the ginseng at a pro- 
 fit, — the ginseng you had forced upon him at a time when he did not 
 want it.— J. H. K.) 
 
 Mr. Goodspeed : I had not intended to enter into this discussion 
 at all, but one circumstance that happened last fall will throw light on 
 this matter of competition between dealers. I cannot remember just 
 the date, but I think it was the latter part of September, a man by the 
 
 name of of Kentucky sent me a sample of his ginseng 
 
 and told me how much he had. I made him an offer of somewheres 
 about $5.00, and I didn't hear anything for some little time. One 
 Monday morning he came into my office, introduced himself, a man I 
 never had seen, and he told me that he had sold his ginseng in New 
 York. He was one of the typical mountaineers of the South, — however, 
 an educated man. He stayed two or three days and we got well 
 acquainted. He told me his experience in New York. The first man 
 that he struck was a dollar below the offer that I had made him. Then 
 he went on telling me the various offers that the different ones made 
 
 to him. He said he finally sold it to Mr. for twenty 
 
 cents on the pound more than I had offered him. But there you see 
 there was a $1.20 range in the competition as between those dealers, and 
 I know of hundreds of circumstances almost identical with that, and 
 they have led me strongly to believe that there was no real combination 
 of the dealers. As I have said many times in "Special Crops," if there 
 is, I don't know anything about it, and I certainly am not connected 
 with it. 
 
 Mr. Kirk : I have several other reasons that make me think 
 there is this combination. I don't know that I have any positive figures 
 to convict them of being in an organization, but that fact, that you 
 cannot sell it only through the regular way, means something. 
 
 Mr. Goodspeed: There was another circumstance that might 
 bear on Mr. Kirk's idea of the situation. Two or three years ago, 
 
 there was a man by the name of , who sent out some 
 
 circulars, advertising he would pay $12.00 a pound for wild ginseng. 
 The Chinamen got hold of that and they immediately boycotted Mr. 
 
 , and in their organization bound themselves to forfeit 
 
 $1,000. for any Chinaman that went into Mr. place of 
 
 business or bought an ounce of root of him, or bought of anybody that 
 
 had bought from Mr. . That shows there was some 
 
 combination among the Chinamen, but there was sharp com- 
 petition among the dealers. What the Chinamen objected to was, that 
 Mr. made that high price to the growers. Now the 
 
Chinaman does enter into that end of it; if one of those dealers down 
 there in New York makes a big, extremely high price on wild roots, 
 the Chinamen kick up a row about it every time. 
 
 Mr. Kirk : This stuff that sold for $12.50, they sold it the next 
 day and got more than that for it. 
 
 Mr. Knowles: I understand Mr. Kirk says the Chinese are 
 going to have it and they won't buy it only through the regular channels. 
 What would be the result if the growers would not give it through the 
 regular channels ? They might as well tell them that now as to keep on 
 selling through the regular channels and quit after some years. 
 
 Mr. Kirk : You are right about that, but you have got to drop 
 thirteen or fourteen hundred dealers who have the market for this 
 stuff. 
 
 Mr. Knowles : It is not necessary for a few growers to support 
 thirteen hundred dealers in New York. The Chinese will buy the stuff 
 from us, if they can't get it from the dealers. 
 
 Mr. Kirk : I am simply stating the market as I found it and 
 have seen that we will either have to sell to those fellows or make a 
 new deal with the Chinese. 
 
 Mr. Knowles: I believe the new deal is the only deal. 
 Mr. Vining: We could do better if we could get sixty-five 
 or seventy-five per cent of the growers to come with us in this Associ- 
 ation. We could just tell those Chinamen they have got to buy of us. 
 But, of course, if we cannot get enough of them, they will stand against 
 us. 
 
 Mr. Rose : We wouldn't have to say a word to the Chinamen, if 
 we had enough of us standing together. 
 
 Mr. Goodspeed: Do I understand there are 1300 of these deal- 
 ers in New York City ? 
 
 Mr. Kirk : Yes, sir, and they sell to about twenty and they sell 
 to one. 
 
 Mr. Knowles : And they are all buying ginseng? 
 Mr. Kirk : They are all there. They all buy a little stock of 
 ginseng or a little goldenseal or something else, and it comes into a 
 few hands. They do not all advertise, but they will all buy. 
 
 Mr. Koehler: Mr. President, I don't believe I have much to 
 say. Officially, I haven't anything to say but what I have said in that 
 prospectus and a little pamphlet I have sent out recently to all those 
 who called for information/ But I have found this, — a friend of mine 
 told me one time that if a man wants to know who he is and how he 
 stands, all he has to do is to enter into politics, or accept a position of 
 trust, and he will soon find out who he is and what he is. I have 
 found out, since you gave me this position, that I am a crook and 
 everything else that is bad. 
 
 The speaker, (Mr. Kirk) made the remark that he was kept in 
 ignorance of what is going on in matters of the AMERICAN GIN- 
 SENG GROWERS ASSOCIATION. I wish to defend myself there 
 and say that he has been given every information firsthand, everything 
 that has been done in this movement so far as I am concerned. He 
 further sarcastically said, that our By-Laws are indefinite as to the 
 
part of the country we take in. I take it that Canada is on the Ameri- 
 can continent and is therefore included. 
 
 The speaker should, if he has the welfare of the association at 
 heart as he tries to make believe that he has, refer such inquiries to me, 
 for he certainly knows that I am in charge of the affairs of the asso- 
 ciation. However, as the speaker was present at every meeting until 
 the matter was turned over to me at Chicago, and as a copy ot the 
 prospectus, minutes of all other meetings, etc., has been sent him, 
 he knew exactly what was going on. But I did ask him not to publish 
 the prospectus or minutes of meetings, thinking it not good business to 
 publish anything of this nature in a public publication and also I had 
 no authority to allow him to publish minutes of meetings, which are 
 rightfully the private property of the members of the association and 
 not public property The fact is, it seems the speaker (Mr. Kirk) does 
 not want to give any information about the association. I have received 
 letters from people indicating as much. One man writes : 
 
 "I have been waiting to receive printed matter and 
 instructions, etc., relative to the new association, as I gave in- 
 structions to Mr. Kirk to give you my name, as I was anxious to 
 
 become a member of the new organization. " 
 
 Mr. Kirk has never sent me such names. And has anyone ever 
 noticed anything in his journal indicating that he favored the associa- 
 tion outside of what was published by the association and paid for? 
 
 The speaker (Mr. Kirk) calls the present middlemen a disease. 
 Now, whenever I have said anything publicly, I think, unless I was 
 asleep, and I usually am not, I have never accused the middlemen, the 
 present buyers of ginseng, as a class of being swindlers. I have never 
 dealt with a fairer set of people, and I have trusted them absolutely. I 
 thought that some asked for a larger credit than they are entitled to. For 
 instance, some that are rated in the commercial report at $3,000. to 
 $5,000, would not accept a C. O. D. shipment. One man asked me to 
 entrust him with a $15,000. shipment and I did and he has treated me 
 fair. Once one showed a yellow streak and last fall there was a little 
 of that inclination with another, but I will withhold judgment . In the 
 latter case, the agreed price was $4.80 per pound and when the ship- 
 ment reached him, the claim was made that the roots were not up to 
 the sample. We were to blame in letting him have it for $4.00. It 
 was not the buyer's fault, it was my associates' fault. It was our fault 
 that it went for less than it was worth, it was not the buyer's fault. 
 We do not propose, at least I, as a grower, do not propose to antagonize 
 any one of the present middlemen. The trouble with the growers has 
 been this. Many have insisted on selling them the goods when they did 
 not want them. Can you blame a man for buying cheap if he is not 
 readv to receive your goods ? Who wouldn't do the same thing ; we are 
 all after money. If there is anybody here that says he isn't, I think 
 he is a hypocrite. . 
 
 The speaker (Mr. Kirk) said, that I would agree with him, that 
 we could not sell direct to China. I do agree with the speaker, that so far 
 as individual growers selling their individual crops in the Orient is con- 
 cerned, or taking a trunk full of samples there, that that would be folly, 
 and not practical ; but collectively, joined in an association, there is no 
 reason in the world why the association can not sell its product direct to 
 
 10 
 
the retailers in China and I say this association can and will sell ginseng 
 direct in China. 
 
 I admit, and I think your representative, Mr. Olney, will admit, 
 that our By-Laws are not yet perfect. That is why we want your co- 
 operation to help us make them perfect. I believe you could puncture 
 them all to pieces, but we did the best we could, the best we knew how 
 at the time. That is about all I have to say, unless you want to ask 
 some questions. 
 
 Mr. Kirk : By way of explanation, when I said when we have 
 a disease we have got to argue the matter along the line of health, I 
 did not mean anything that had any reference whatever to the buyers. 
 I did not speak of them as being a disease, — as a pest, but I did infer 
 that we had a market that was unsatisfactory and we have got to 
 argue from the line of health in the market in order to get it where we 
 want to get it. That is what I meant exactly. 
 
 Mr. Goodspecd : It is my desire while here to help if I possibly 
 can. I want to leave the convention now soon, and before I go, I 
 think I will tell you a little experience that I have had in selling direct 
 in China. I have been shipping direct to China now for twelve or 
 thirteen years. The only way that I have been able to sell direct to 
 China is by using a Chinaman at the other end of the route, for the 
 Chinese are opposed to dealing with foreigners. My deal is con- 
 summated with an Englishman. That Englishman has a Chinese 
 manager, and the only one that the Chinese consumer knows and rec- 
 ognizes in that deal is the Chinese representative over there in Fou- 
 chow. You have a long hard struggle before you if you expect to deal 
 as an American firm located in China. There are several people that 
 sell there on commission, and I imagine, that as an Association, you 
 might possibly, in the course of two or three years, by associating 
 yourselves with a Chinaman in China, establish a direct sale to the 
 Chinese. But if you go there to sell as Americans, establishing your 
 house there in China under the management of a foreigner, you have a 
 hard proposition on your hands. 
 
 Mr. Koehler: We realize that we have a hard nut to crack. I 
 also want to say that I agree with what Mr. Goodspeed said a while 
 ago. I do not believe there is any conspiracy or any combination be- 
 tween the buyers in this country, the so-called middlemen, — I haven't 
 found any. But there is a very strong Oriental organization that we 
 are up against and we have slept too long. I quoted from one consular 
 report in our prospectus, which report was published in 1913, which 
 sets forth very plainly, I think in so many words, that there is such an 
 Oriental organization. As a result of that organization, their produc- 
 tion, their output and all output, goes through one channel for the 
 purpose of upholding prices which they have set, thus crowding out of 
 the Oriental market all foreign dealers. After they have accomplished 
 that, they will be in a position to tell consumers over there that there 
 is no more "Melican" ginseng to be had. The result will be that the 
 prices of the Oriental product will go up and we "Melicans" will have 
 nothing to do with our ginseng but to make soup of it. Some seem to 
 be under the impression that they want our ginseng so badly tnat they 
 were willing to relieve us from the trouble of shipping it across the 
 
water. In my opinion they have another purpose in mind, and that is, 
 to crowd out of the Oriental market the so-called foreign dealer and 
 simultaneously the American ginseng. 
 
 History tells us that the consumers have wanted our ginseng 
 for two hundred years, they have bought every ounce we have pro- 
 duced and there was never an over-production for all those two hund- 
 red years, and I believe that they will still buy it, if we come over 
 there and show them that we have the goods. For a while they might 
 make it hot enough for us ; they will make it appear, if they can, that 
 we cannot sell one pound of ginseng, but even so, if we find out nothing 
 else, except that they do not want to buy our ginseng, we will have 
 accomplished something. I, for one, want to know whether it is time 
 to stop growing ginseng, or to go ahead. Either way will satisfy 
 me, but I believe I would rather see it stop altogether than go on under 
 present conditions. 
 
 Mr. Goodspeed: I believe that if you could only get a majority 
 of the ginseng growers firmly united as a solid body and then simply 
 lie back, — do nothing, — I believe the matter would work out and the 
 trade would come to you ; but just so long as you have not a balance of 
 power, the thing is going the other way. 
 
 Mr. Kirk : There isn't any doubt about it, it is a difficult 
 thing to sell. 
 
 Mr. Devlin : Why should the sale of American grown ginseng 
 to the Chinese differ from that of other American products in China. 
 We have the largest pharmaceutical houses in the world in America 
 and I know of at least a dozen that have branch houses in China, 
 supplying their products by the thousand to the Chinese people. 
 
 Mr. Goodspeed: May I interrupt to ask if those branch houses 
 are under the control or management of foreigners, or are they im- 
 mediately managed by Chinese? 
 
 Mr. Devlin : They have their own offices and representatives. 
 They employ men who are very familiar with Chinese methods and 
 people, I admit that ; but what I want to know is why this proposition 
 should differ so greatly from any other of the same kind. We are 
 exporting millions of dollars worth of stuff every year in China. 
 
 Mr. Goodspeed: It would not differ if you get it worked up 
 to the point that those other things are worked up to. 
 
 Mr. Devlin : It will never be worked up till it is started. You 
 have to have a starting point. 
 
 Mr. Goodspeed: Most certainly. 
 
 Mr. Devlin : Of course there is one difference in the fact that 
 the method of supplying it has been for a long time through Chinese 
 buyers in New York City and their co-called middlemen, as it is today ; 
 but I fail to see why an Association cannot be formed, with head- 
 quarters in Hong Kong, or some other real Chinese port, and transact 
 business direct. I would like some enlightenment on that subject, why 
 that should differ from any other business proposition. You all know 
 that we have scores of houses in this country that have branches over 
 there. I do business with the Chinese myself, and not through New 
 York at all, — have done for the past eighteen years. 
 
 Mr. Rose : I can't see why that central house needs to be over 
 
 12 
 
in China. If we have, say, 75 per cent of the growers with us and 
 make up our minds to control the market in the United States, why 
 couldn't we control that market in New York just as well as to have 
 it over in Hong Kong ? I can't see why we want to go out of our native 
 country to control our market. 
 
 Mr. Koehler: My only answer to that question would be that 
 we have slept too long. The time may have come that that Oriental 
 combination can furnish the immediate demand for ginseng without our 
 American ginseng, and in that event, it would be necessary to prove 
 to the consumer that the American ginseng can be had by showing it 
 to them. As an individual — I am not speaking officially — as an indi- 
 vidual, I would say that I think our first tryout ought to be here, not 
 go across the water; but if they show signs that it must go over there 
 through the regular channels, we will go right there, go to the place 
 where they want the goods, and show them that the goods are to be had. 
 American ginseng will sell on its merit. While I was writing that 
 prospectus, a letter came from a high authority in China, wanting to 
 buy all the ginseng seed I could spare, and buy it at any price I should 
 ask. Why should they want that seed if our product is not the right 
 quality? American ginseng will sell on its merits if the selling is 
 properly handled. 
 
 Secretary Wilder : We certainly have not solved this problem 
 of market yet, but we do know that, with a centralized organization, 
 it can be solved. This National Association does not know yet 
 just the way to get the most profit in the selling of its ginseng, but 
 they will find out, they will study conditions the same as any other 
 seller ; they will go where they are getting the most for it ; they will 
 have more of an incentive to go where they can get the most for it, 
 because they are producers. 
 
 Mr. Koehler: Referring once more as to whether there exists 
 a combination between the buyers, — the so-called middlemen of this 
 country : 1 really believe, had the middlemen combined, we growers 
 would have been better off, but their interests are not as vital as ours 
 as growers. We have, besides our money, our reputation at stake, — 
 we are considered crazy fools, — while the middlemen had nothing at 
 stake. I think, if they had associated in a combination, working to- 
 wards the upholding of prices, we would have fared better at their 
 hands. Somebody has referred here in a sarcastic way to these Jews. 
 I believe we should not use that name, "Jew," in an antagonizing way. 
 The Jew is just as proud of his ancestors as we are of ours. I am 
 not ashamed of being a German descendant, and the Jews have a right 
 to be proud of their ancestors. Furthermore, I believe that this 
 association, after we get it going, can make no better selection of a 
 salesman than to employ one of those very Jews to handle our sales 
 for us. Get the one who has made the most money out of us, for the 
 man that is able to make money for himself is a good man to employ, 
 while the one who is not even able to make anything for himself is 
 not worth having. 
 
 Mr. Goodspeed : I believe that there is one way that this Asso- 
 ciation can be handled successfully. My idea would be, a strong or- 
 ganization financially to concentrate your ginseng and if a man has got 
 
 13 
 
to sell his ginseng, needs the money, make your Association strong 
 enough so you can advance him, say, 50 per cent of a reasonable price 
 on his ginseng. Then concentrate your ginseng, get it together, don't 
 be in a hurry to sell. There are so many people that want to sell just 
 as soon as the market opens in the fall, and when they insist upon doing 
 that, that knocks the price down. I believe your strength should be 
 along the financial line. Get in shape so you can advance a man, that 
 has to sell, a reasonable percentage of what your best judges would 
 call the value of his ginseng. Get your root together and hold it and 
 the Chinaman will come to you, if you get in that position; he is bound 
 to come to you. 
 
 Mr. Kirk: May I read a few lines of this consular report, 
 which will dispose of the question of the method of getting into China? 
 It is direct from Mr. Cunningham. He says : 
 
 "The ginseng sold in the Hankow market is dried and 
 clarified, and the dealers know nothing of the distinction 
 between wild and cultivated ginseng. The -price of ginseng is 
 lower at the present time than at the corresponding period of 
 last year or for some years preceding. The local firms rarely 
 import direct, but through Hong Kong firms, and as the trade is 
 strictly in the hands of Chinese it is exceedingly doubtful about 
 your being able to make any local connection for the sale of this 
 article in this district." 
 
 That was my authority for saying we have got to go through 
 the regular channel, and we will never get into China in any other way. 
 
 (I don't believe that is a consular report at all. I think I have 
 seen all consular reports regarding ginseng and never saw one like it. 
 I believe it is nothing but personal correspondence. What I understand 
 by a consular report is an official report made by our foreign repre- 
 sentatives through our commerce department at Washington, D. C, 
 and not what someone might say off-hand to some one-horse newspaper 
 man in order to get rid of being annoyed by him. Further, what is 
 true, locally, in one district, does not necessarily govern all over China. 
 Still, your correspondent shows you plainly that you might establish 
 yourself at Hong Kong. I have heard no one say that we expect to 
 establish ourselves at Hankow. 
 
 This calls to mind an incident of some years ago when an ex- 
 consul, who apparently had a grudge against the ginseng industry of 
 this country, wrote to a Minnesota paper asking the publication of an 
 article knocking the industry and asked that other papers copy the 
 article so as to set the minds of the American people right on the 
 ginseng craze. He said that it was a fake and that there was absolutely 
 no sale for American ginseng in China. I made investigations and 
 found that in the very same year 5,000 pounds of ginseng had been im- 
 ported into that same city and what is more, seventy-five per cent of it 
 was American. So you see that sometimes these so-called consular 
 reports are not altogether reliable. — (J. H. K.) 
 
 Consul E. Charlton Baker, in his official report to Washington, 
 dated March 29, 1915, after explaining how ginseng prices are manipu- 
 lated in China by the dealers, says : 
 
 "American ginseng producers should, if possible, have 
 their own agents at Hong Kong and get the business into their 
 
own hands to prevent this sort of manipulation. It appears 
 that ginseng cannot be treated properly in America and must 
 be clarified, as well as graded, at Hong Kong. There is no rea- 
 son, however, why American dealers cannot combine to take over 
 the business in China and adjust prices in such a way as to en- 
 courage the use of their output." 
 
 Mr. Koehler: As said before, so far as selling individual crops 
 direct to China, that is not at all practical. I have sold some ginseng 
 directly in China at $13.C0 a pound, but that was not selling an entire 
 crop by any means. Each little retailer has his little trade educated 
 up to a certain quality — a certain kind — for their wants. The moment 
 he offers roots that are different from those, his customer becomes 
 skeptical ; he thinks that it is not as good as what he is used to and he 
 doesn't want it, though it may be ten times better. I have for years 
 sold ginseng on the Pacific Coast, at from $10.00 to $10.50 a pound 
 for a quality that I could not get over $5. at New York ; but it must 
 be a certain class. But that we cannot sell direct to China at all, that 
 is ridiculous ; of course we can sell there. If we can't sell it ourselves, 
 we can hire a Chinaman to do it for us, but under our own management, 
 
 Mr. Goodspeed : I imagine that you might interest some of the 
 commission houses over in Hong Kong and get in touch with the trade 
 in that way. 
 
 Mr. Koehler : Just how these things are to be done, we are not 
 prepared to say officially. So far as we have gone in this National 
 Association movement, the management is left to a Eoard of Directors. 
 Just as soon as enough applications for membership have come in, 
 creating a capital sufficient so that, in the judgment of the Board 
 of Directors, the Association can hope to do business successfully, then 
 the Board of Directors will get together and agree on a working plan. 
 Personally, I wouldn't care to tell you at this time my ideas in the 
 matter ; I don't believe any of the Directors would ; but we would like to 
 hear from some of you as to how you think we should handle things. 
 Then your representatives will get together when the time comes and 
 work out these working plans. If you don't like them, oust your 
 Board of Directors, — they are not fixtures, — and get somebody who 
 will do better. 
 
 Mr. Kirk : I believe one Board of Directors will do as well as 
 another. I have no objections to the Board of Directors that are in 
 there; do not understand me to say that I have. They are as good 
 business men as you can find anywhere. 
 
 Mr. Vining: Then the quicker we get to doing business and 
 let this Board of Directors get to work, the better. This rag-chewing 
 and brotherly-love talk doesn't accomplish anything. I want to make 
 application for membership and take some stock. 
 
 Secretary Wilder: I believe that this Association ought to put 
 their official approval upon this movement. 
 
 I move that we, as an Association, approve of and adopt the 
 plans of the AMERICAN GINSENG GROWERS' ASSOCIATION 
 and will use our influence to further it. 
 
 Motion supported and carried with no negative votes. 
 
 Mr. Olney : Mr. President, we have not any detailed working 
 
plan yet of this thing. What we are offering you gentlemen, is 
 an opportunity to come in and help us to form a strong company, 
 which will be solid financially, sufficiently so to be recognized as a 
 business proposition, and then, after it is financed, it will be up to the 
 Directors to study the market conditions and decide whether they will 
 go to China and sell ginseng or whether they will sell it on this side 
 of the water — we cannot tell yet, we don't know, we have to study the 
 conditions. When we have done that, then we will be in position to 
 map out a line of work to follow. But it is going to take constant 
 study to keep that up. If you are manufacturing nails, you are not 
 going to a grocery store to sell your goods, or to a tailor store ; you are 
 going to a hardware store. We have to get our product through some 
 channel before the party that uses it. It is going to be up to the 
 Directors to study this question carefully and find the channel through 
 which we can sell it at the least expense. Another thing, we have to 
 study the requirements. You can't sell a man nails if he wants gro- 
 ceries. If a man comes into a store and wants horse shoe nails, you 
 have to sell him horse shoe nails, not ten-penny spikes. If a man wants 
 a long, slim root, you have to sell him that. We can find, I believe, 
 an outlet for every kind of root we have. We can't do it in a minute. 
 Whether this Board can work it out. or not, I don't know. If we can't 
 it is up to you to fire us. 
 
 The Chairman : I believe there have been some very good sug- 
 gestions made here. As it looks to me, I don't see how any ginseng or 
 goldenseal dealer on the American continent can see anything wrong 
 with a movement of this kind. It is just such movements, having 
 been properly made and put through, that have achieved the greatest 
 successes in all kinds of business. See what the California Fruit 
 growers were up against. You can take any line of business that is 
 properly organized and conducted, and it is the surest and quickest 
 way to success. In the past, we have been divided ; you might say 
 that the growers were in competition with one another. United, we 
 will stand ; divided, we will fall. And I, for one, want to become a 
 member of the AMERICAN GINSENG GROWERS' ASSOCIA- 
 TION. I have a little money, I haven't much, but what money I have 
 to spare, I am going to buy stock with. 
 
 Mr. Goodspced : I am here, not to take notes ; I have not taken 
 any and I shall not go home and print anything in "Special Crops," 
 excepting such as the officers of this Association may see fit to give. 
 I think very likely Mr. Kirk will feel the same way about it, I do not 
 know as to that. But I will not write up anything and have not written 
 up anything. I would like your Secretary, after consultation with the 
 Officers of the Association, to write me concerning this matter and 
 send me just what you like to have printed. 
 
 Mr. Koehler: In behalf of the National Association, I want to 
 thank Mr. Goodspeed from the bottom of my heart for the promise 
 he makes, not to publish anything except what is given him officially. 
 Your attitude is appreciated, Mr. Goodspeed. 
 
 Mr. Goodspeed: Thank you.. I will say in addition to that, 
 "Special Crops" is open to this Association and to the National Asso- 
 ciation at any time ; there is no charge for advertising, or anything 
 
else ; it is open to you ; that is, so long as you do not call one another 
 names, or anything of that kind. 
 
 Mr. Kochler: The reason why I appreciate your attitude is 
 this: until we, as Directors, get together and frame definite working 
 plans, if we all talk in a haphazard way, our ideas are bound to differ 
 and by talking too freely about our ideas, we are liable to cross our 
 wires and cause suspicion and shatter confidence in place of establishing 
 confidence, and, gentlemen, confidence, between the growers and their 
 association, is what we need, or our undertaking is not going to be suc- 
 cessful. You all know that there is bound to be some difference of 
 opinion among men, and it is always better that they get together in a 
 small circle and thresh out their differences among themselves and then 
 come out with one idea. 
 
 Mr. Dresscl : I look at this talk to be something like when we 
 are in Scripture reasoning. We seem to differ considerably, but 
 after all, when you come to simmer it down, we are all after the 
 same point where we want to agree to join in this thing and go ahead 
 in backing up this Association. 
 
 Mr. Warren: I can't see but what the results are bound to 
 be satisfactory and the proper thing now is for each one of us to come 
 up, make application for membership and subscribe for stock in this 
 thing and get your neighbors to do it also. I will take $100. worth 
 of stock in this proposition, and I want to do it because we, as growers, 
 are down and out unless we do something. And if we can get 60 per 
 cent of the growers together, we can do something. It may be con- 
 siderably later before we are able to handle any of our root ; in the 
 meantime we are at liberty to sell our root as best we can. 
 
 Mr. Goodspeed : There is a possibility of merging the New 
 York buyers with you. 
 
 Mr. Koehler : That can all be considered when we come to the 
 point of doing business. 
 
 Mr. Custer: (Called upon) I have been listening to this 
 discussion and, personally, I haven't got a great deal out of it. There 
 has been a good deal said. For the last five years, I have been attend- 
 ing these sessions and working and taking notes and suggestions and 
 even paying out money for men that were investigating diseases and 
 so on, and we started in with quite a fine prospect of ginseng. There 
 must be something in our soil that seems bound to bring us down and 
 out. It wouldn't be any use for me to go into this Association until 
 you can insure me that I can raise ginseng in some way ; I have done 
 all in my power to raise it and I can't do it. 
 
 Mr. Koehler: I would like to say in answer to that, that so 
 far the talk has been on lines which indicate that this is only a selling 
 organization. It is not. In fact, I believe, that a very important 
 point is, that we may co-operate in methods of growing and over- 
 coming our troubles in the growing of the plants as well. We all 
 know we cannot hope to sell an inferior article at a big price. We will 
 have to have the right product in the first place, and, collectively, we 
 can of course handle those diseases much better than we can indi- 
 vidually. 
 
 Mr. Vining : There is one point that has not been touched on. 
 
 17 
 
I rather think, from reading the literature that I got from Mr. Koehler, 
 that it is proposed, after receiving subscriptions for stock, that if the 
 Board of Directors finds it is impossible to go through with this thing, 
 that our money comes back to us, except such amount as is necessary to 
 defray expenses up to that time. 
 
 Mr. Koehler : Yes, that is the idea. You see, we didn't know 
 whether this thing could be pulled through and we thought it necessary 
 to make a provision of that kind. There is no use in our trying to do 
 business with a few hundred dollars ; it simply couldn't be done. It 
 was advocated by some, that capital was not needed, but I never saw 
 yet in any other business, that anything could be done without capital. 
 
 Mr. Brigham : This talk has all been about ginseng. Does it 
 include goldenseal, too? 
 
 Mr. Koehler : Oh, yes ; it is mentioned in the By-Laws, ginseng 
 and other medical plants. We made that very broad so that we can do 
 most anything. 
 
 Mr. Brigham : My interest is so small that I don't know that 
 I ought to say anything. But it seems to me that you have a pretty 
 large proposition when you undertake to organize the ginseng growers, 
 especially to control the market. While I believe this movement is 
 right and that it ought to be worked out, still you will have to think 
 the matter over pretty carefully and have your plans pretty well laid, 
 and it seems to me, you must have some arrangement, whereby, if 
 necessary, the ginseng, belonging to growers, can be held for one or 
 two years, until they know that they over there have to buy it through 
 the Association and there must be enough of it in that body to make it 
 an object. If you haven't a method of holding it for one or two years, 
 you cannot do that. 
 
 Mr. Goodspeed : I have ginseng in my home that has been 
 there for a year and a half ; I have somewhere from fifty to sixty 
 barrels there that do not belong to me ; it is held in trust for different 
 individuals. If your Association gets onto its feet and gets the con- 
 fidence of growers, I do not believe you will have a particle of trouble 
 along that line. The grower of ginseng is of greater intellignce than 
 the average farmer. If he is assured of getting benefits in the end, 
 he is not afraid of holding his product even for one or two years, if 
 you can show him any good reason. If this Association gets on its 
 feet and gets the confidence of the growers, I believe 75 per cent of 
 the growers will be perfectly willing to trust their product in the hands 
 of their own Association. I think it is true, that a large percentage of 
 the growers would be financially in position to hold their product. But 
 my idea is, that this Association should be sufficiently strong so that, 
 if the grower must have it, it can advance him a certain per cent of the 
 value of his ginseng. 
 
 The Chairman: If the ginseng output for one year, say, — start 
 in with the 1917 crop, hold that back, — supposing we are sufficiently 
 organized by the first of next September so that there will be 75 per 
 cent of the 1917 ginseng crop to be held in trust with this National 
 Association, the chances are that, if 75 per cent of the American gin- 
 seng crop is held in one place, there will be somebody looking after it 
 and wanting to know why they are not getting hold of it. For my 
 
part, I do not believe we would have to go without selling our ginseng 
 more than one year, and my opinion is that, by doing so, we would be 
 mighty well paid for hanging onto it ; that we would get mighty big 
 interest for our money. But we can't do anything unless we all stand 
 together. 
 
 Mr. Koehler: It is very true, as Mr. Goodspeed suggests, that 
 we ought to be in position to advance a small percentage on the crop 
 of small growers. I advocated that in Wisconsin, but it was claimed 
 we could not get sufficient capital interested. However, I think that 
 if we would show the dispensaries of credit that the Association in- 
 tends to do business strictly along business lines, we will have no trouble 
 borrowing from the banks. These banks are in the market to loan 
 money, they want to loan it and get the interest. When we have a 
 million dollars worth of ginseng stacked up somewhere and they know 
 we are doing business along business lines, we will get some money. 
 The farmers are getting it on their wheat certificates. 
 
 Mr. Kirk : Mr. President, this idea is all right and charitable, 
 but there is another question involved. If a man has good, first class 
 ginseng that will sell well, the Association doesn't need to hold it; it 
 will sell on its merits. It is only the inferior product that is likely to 
 pile up. However, I don't think this matter of holding up the stuff 
 of poor growers would bother us very much. 
 
 Mr. Goodspeed : My idea would be that the price the root 
 should be sold for should be left absolutely with the Board of Directors. 
 The grower, if he throws his root onto this Association to be handled, 
 I do not believe he should fix the prices, because I do not see how that 
 could work out at all. I think the good root should be held identically 
 with the poor root and when your executive committee should see 
 fit to sell, why, sell the two kinds of crops. 
 
 Mr. Koehler: There would be no first or last so far as the 
 small or the large growers are concerned. The price would have to 
 govern that. 
 
 The Chairman: Sure. When the price is right to sell, the 
 stock on hand should go. 
 
 Mr. Koehler: For instance: if we have, say, ten grades. If 
 one or the other grade sells more readily, we will know that we should 
 raise the price on those grades ; supply and demand would govern. 
 I believe as Mr. Goodspeed, if you are going to do any business, you 
 should leave the fixing of prices with your Board of Directors. 
 
 Mr. Brigham : I agree with that, but evidently there will have 
 to be some means of taking care of this root until it is sold. I also 
 think that committee should not be too large a committee. 
 
 The Chairman : As I understand the proposed By-Laws of the 
 Association, the Board of Directors is empowered to do all those 
 things. We are trusting to their best judgment. 
 
 Mr. Koehler : That should be thoroughly understood, when you 
 become a member of this Association, that you have left the manage- 
 ment of its business to the Board of Directors, and if you do not like 
 the present Board of Directors, oust them and put in another Board. 
 
 Mr. Kirk : If a man had all his money in this Association and 
 
 19 
 
the Association didn't see fit to let him have it back, he would be hard 
 up. 
 
 Mr. Goodspeed: He should consider that before he submits 
 himself to the Association. 
 
 (That is where you, if you are a member, get busy with your 
 vote, Mr. Kirk. Not, however, to vote whether, or when, a certain 
 crop of roots shall be sold, or at what price it shall be sold. All that 
 you have left to your representatives. But if your representatives do 
 not do their duties properly — do not conduct the affairs of the Associa- 
 tion to the best interest of its members, whose servants they are, — then 
 you vote to oust them and to put others in their places. This will per- 
 haps set your mind at rest as to what voting is for. I think I have 
 heard or read where you have ridiculed and asked what voting is for, 
 and said that voting is unnecessary. — (J. H. K.) 
 
 Mr. Vining: Suppose I am a member of the Association and 
 I have a bunch of ginseng and I need the money and some of the 
 present middlemen say, "I will pay you a certain price," and that price 
 was very attractive and I sell to him, being still a member, what does 
 the Association do to me? 
 
 Mr. Koehler: We would proceed against you according to the 
 terms of our By-Laws. 
 
 Mr. Fining: Under the By-Laws, I have obligated myself to 
 pay into the treasury of the Association ten per cent of the amount 
 received for such sale and in addition thereto such other expense as 
 the Association may have incurred in attempting to effect a sale of the 
 product sold. 
 
 Mr. Koehler: Yes, perhaps we can afford to allow you to do 
 that. But in extreme cases, you also forfeit all interest in any product 
 that you may have in the custody of the Association, as well as your 
 shares of the stock. Or, if, in the opinion of the Board of Directors, 
 it becomes apparent, that your application for membership was made 
 with the intent to secure stock in the Association to its detriment, you 
 have authorized the Board of Directors to cancel your stock certificate 
 and return to you the money paid for it. So you see that you can be 
 ousted. 
 
 Secretary Wilder: I don't believe there will be any trouble in 
 regard to advances, if we get the Association on a business basis, 
 where the members will be able to get what money they need, where 
 they will be able to borrow at the banks, if necessary, on their crops. 
 That is one thing that has bothered ginseng growers, the ginseng 
 business has not been on a business basis. 
 
 The Chairman : There is one little point that has not been men- 
 tioned. With the Association we would be sending our roots to men 
 empowered by ourselves to handle them. Heretofore we have been 
 shipping to strangers. Sometimes our roots have been entrusted to 
 men whose financial responsibility is less than the value our roots re- 
 presented. I am sure I would have more confidence in entrusting my 
 crop of ginseng and goldenseal to men I helped empower to handle it. 
 For, I am part of the organization. 
 
 Mr. Koehler : You are simply trusting yourself. 
 
 20 
 
Mr. Goodspeed : I want to thank you for the cordial greeting 
 you have given me. I am glad to have met with you and I hope at some 
 future time we will meet again. I am very glad to have met you. 
 
 (Recess of a few minutes to bid Mr. Good- 
 speed good-bye.) 
 
 Mr. Koehler : In regard to the prospects for the success of the 
 AMERICAN GINSENG GROWERS' ASSOCIATION, I am pleased 
 to be able to report that they seem good. Less than one month ago, 
 the first prospectus, By-Laws and application blanks were sent out and 
 already thirty-six applications for membership have come in, together 
 with payments for snares of stock. 
 
 You will perhaps recall, that in our prospectus and in "Special 
 Crops" it is mentioned, that it was a man's size proposition and one 
 requiring brains and push to put it over, and the question came up, 
 whether we might have available material of this kind among the 
 growers. In this connection it might be said, that could you be at my 
 office and read some of the letters that are coming in, I assure you, you 
 would have no further doubt. I find that we have the finest kind of 
 material. It is most remarkable, the talent that is displayed in the way 
 of wit, humor and sound business sense. Yes, it makes me feel as 
 though I have to step aside and let someone else who knows how do 
 the work. In fact, it seems as though everybody is working. 
 
 It would seem from some correspondence that some of the 
 growers had an idea that this Association was to be solely a marketing 
 organization. It this connection it might be said that the intentions 
 are to co-operate not only in marketing, but to cover all phases of the 
 business of growing ginseng and goldenseal from the seed to the ma- 
 tured root. 
 
 One or two inquiries have come in asking how the Association 
 proposes to manage its business. This question is answered in the 
 prospectus and in the By-Laws. Furthermore, all questions of that 
 kind will receive prompt attention when asked, whether by letter or in 
 person. It might be added, however, that whatever will be done will 
 be done strictly along the lines and in accordance with good business 
 principles. Absolutely no fogie methods will be followed. 
 
 Gentlemen, the prospects are good. I think the eyes of the 
 growers of America are on this meeting today; they are waiting to see 
 what is done here. The applications to date have not come in from 
 Michigan as much as from other States and I think the growers of the 
 other States are waiting to hear what you are going to do. They knew 
 this matter was to be discussed here. The applications so far are 
 from Wisconsin, 17; Minnesota, 6; Indiana, 3; Missouri, 2; Michigan, 
 2 ; Ohio, 1 ; West Virginia, 1 ; South Dakota, 1 ; Kansas, 1 ; North 
 Carolina, 1 ; Tennessee, 1. 
 
 Mr. Vining : It is quite a compliment to you that you are getting 
 so many applications from your home State ; it looks as if you had the 
 confidence of your fellow growers. If you had had only one applica- 
 tion from Wisconsin, I should have been a little suspicious. You are 
 evidently not as big a crook as certain sources would have us believe. 
 I want some stock. 
 
Mr. Koehler : When it was announced in our home paper, that 
 Koehler had been appointed to put into effect this National Association, 
 one grower came in and said, "I want some stock, $50. now and $50. 
 later on." He has a little garden in the back of his lot in the city of 
 Wausau. 
 
 The Chairman: I suggest that the time is ripe, there is no 
 time like the present, fellow growers, to get busy and fill out the neces- 
 sary blanks and come across for as much stock as our means will allow. 
 
 Mr. Koehler: I suggest that you make your applications and if 
 you haven't the money today, you can remit it promptly upon your 
 arrival home. It is the intention to follow up the literature, that has 
 been sent so far, with some follow-up literature and I want in that 
 literature to be able to say by whom applications have been made and 
 how much has been subscribed. I think that will help wonderfully to 
 establish, and in some cases to re-establish, confidence. 
 
 The Chairman : And if, for instance, one man takes one or two 
 or three shares and wants to take more later on, that should be men- 
 tioned. I want to take some now and more later. I want to have my 
 amount of shares consistent with my means and with the size of my 
 garden or the income from my garden. If every grower here would 
 do that same thing, there would be no trouble getting enough money. 
 
 Mr. Koehler: To those who are coming in, we want it under- 
 stood, that the books will be thrown open and shown to any member. As 
 to my personal business integrity, as well as financial responsibility, I 
 am pleased to be able to refer you, by permission, to the National Ger- 
 man American Bank of Wausau, Wis. I could refer you to a half 
 dozen other banks, but as I do most of my banking business with this 
 bank, it should be in better position to give you reliable information. 
 Those of you who are conversant with business methods, know how this 
 is done. And those of you who are not, go to your home banker and 
 if your own credit is good, he will be pleased to find out for you whether 
 or not Koehler is a crook. 
 
 You simply need to sign the application blank and turn over 
 $10. for every share you subscribe for. We prepared application 
 blanks in duplicate so you can keep a copy and know what you have 
 done. Checks should be drawn payable to J. H. Koehler, Acting 
 President. 
 
 (A recess followed during which fifteen of those present, who 
 had money with them, made application for membership, subscribing 
 for a total of thirty-seven shares and others promised to send in their 
 application immediately upon their arrival home. 
 
 It should perhaps be mentioned that Mr. L. B. Hetrick, of In- 
 diana, who, it had been announced, was to be present at the Lansing, 
 Michigan, meeting and take part in the discussion of the National 
 Association, did not attend in person, but was represented by an able 
 paper, bringing out some vital points, indicating that he is heartily 
 in favor of co-operation. Of course, Mr. Hetrick is a member and 
 naturally would be in favor of it, unless he wished to be termed a 
 drone or a traitor, and we know he is not of that kind. 
 
A high authority on co-operative associations defines a drone as 
 a grower who joins a co-operative organization and then refuses to 
 patronize it, and adds : "He can not even excuse himself on the ground 
 of bad management, for it is his duty to help secure proper conduct of 
 the business." 
 
 And the same authority defines a traitor as being a "man who 
 joins a co-operative enterprise and then, through subtle ways, endeav- 
 ors to obstruct its progress and defeat its purposes." 
 
 But as said before, we know Mr. Hetrick should not be a man 
 of that kind. 
 
 We would have been pleased to quote Mr. Hetrick's paper 
 literally, but owing to its length (containing about 3000 words), we 
 had to refrain from doing so. But if anyone is interested, we will, 
 upon request, be pleased to prepare and mail a typewritten copy. It 
 is good reading and should have the tendency of making an association 
 enthusiastic of the one reading it. — (J. H. K.) 
 
 PROGRESS 
 
 The progress of our association is quite gratifying. It is only 
 three months ago since the first Prospectus, By-Laws and application 
 blanks were sent out and already 103 applications for membership and 
 shares have come in, subscribing for from one to ten shares each. The 
 total shares subscribed for up to the date of this writing, April 1, 1917, 
 is 190 shares. The applications are coming from North, East, South 
 and West ; growers from seventeen different states and two provinces 
 of Canada have become members. 
 
 This growth, we feel, is very gratifying considering the adverse 
 conditions under which we have been working. The growth may not 
 have been as rapid as some may have expected ; but to us, it is very 
 encouraging. An undertaking of this magnitude could hardly be ex- 
 pected to be pulled off without serious opposition. We should not ex- 
 pect that the middlemen, who have annually, for the past two hundred 
 years, pocketed the snug sum of about one half million dollars in profits 
 on ginseng and goldenseal, would step aside and let the growers have 
 this "rake off" without most serious protest. They want that "rake off" 
 to continue for themselves and we cannot blame them. But the grow- 
 ers are more justly entitled to it. They can get it, and more too; it is 
 within their reach. United effort through co-operation in the AMERI- 
 CAN GINSENG GROWERS' ASSOCIATION is the way to get it. 
 And it is the only way. 
 
 There are said to be about 4000 people in the United States 
 and Canada who are more or less interested in the culture of ginseng 
 and goldenseal. We have so far only a small portion of these names. 
 Help us to come in contact with all of them by sending us the names 
 and addresses of all growers you know of so that we may send them 
 literature relative to our association. Many have done this, why not 
 you also? By doing this, you will do them, as well as yourself, a favor. 
 The benefit will be mutual. 
 
 Do not fear that names of growers you may send us will be used 
 for any other purpose than for the promotion of our, your, association. 
 
 23 
 
They will not be used for personal gain. If you ever find that the 
 names you send to your Acting President are being willfully used for 
 personal gain, for the purpose of selling ginseng nursery stock, you 
 are hereby not only permitted, but requested, to say so publicly. This 
 statement should give you ample protection ; for if violated, it will give 
 you a clear case of breach of trust against your Acting President, which 
 you would have no trouble to make "stick" legally. For, if you will 
 make commercial investigations, you will find that your Acting Presi- 
 dent is amply responsible, financially, for anything he does and says. 
 
 If you have the welfare of our, your, association at heart, send 
 us names of growers. The writer has contributed his own list of about 
 three thousand names, which will perhaps mean a personal loss to him 
 of several thousand dollars. But he is gladly making this sacrifice for 
 the general good of the cause. Others have contributed their per- 
 sonal mailing list. All State Associations have sent their list of 
 members ; the Ontario Ginseng Growers' Association of Canada has 
 also sent us a list of its members. 
 
 Another loyal friend of the growers, who has the welfare of our 
 association at heart, has recently promised to furnish us a list of two 
 thousand names. 
 
 CANADIAN GROWERS WANTED AS MEMBERS 
 
 The question has been asked whether ginseng and goldenseal 
 growers residing in Canada can become or are wanted as members of 
 this association, and as there may be others who do not even write us, 
 we wish to explain, for the benefit of all, that Canadian growers are 
 most welcome to join us in this movement. In fact, it is appreciated 
 that they approve of our oragnization and show their willingness to 
 join us in this undertaking. The name of the association, we thought, 
 would be sufficient to indicate that Canadian growers are welcome as 
 members, it being the American Ginseng Growers' Association, and 
 Canada is in America. So, come ahead, neighbors, send us your name 
 and postoffice address and we shall be pleased to furnish you literature 
 and application blanks. 
 
 ALLOWED TO SELL ROOTS 
 
 Another question has come up. Some have written that they 
 heartily approve of the movement, wish to become members of the 
 association, but as it is indefinite when the association might be ready 
 to accept their patronage, they did not wish to bind themselves at this 
 time, for they have roots which they might want to sell before the 
 association becomes active. 
 
 In answer to the above, we had thought that the minutes of the 
 Chicago meeting contained in the pamphlet with the By-Laws would 
 imply that no member can be bound by the By-Laws while the associa- 
 tion is still in a tentative form. It is plainly stated in the minutes on 
 page 13 of the pamphlet that the association is not to become active 
 until enough members have come in, creating a capital sufficient, so that 
 in the judgment of the Board of Directors it can hope to do business 
 successfully. And certainly as long as the association is not in posi- 
 
 24 
 
tion to accept the patronage of a member, such member could not be 
 legally or morally held by the By-Laws. 
 
 However, to remove any doubt, your Board of Directors has 
 taken the following action in the matter : 
 
 Whereas, It is not clearly stated in the By-Laws of 
 this Association whether or not members, during the time while 
 the association is still in a tentative form, shall be allowed to 
 sell their product through channels other than this association 
 and 
 
 Whereas, It could hardly be expected that members 
 hold their product until this association becomes active and in 
 position to accept the patronage of such members, be it 
 
 Resolved, That so long as this association is in a tentative 
 form and not in position to accept the patronage of its members, 
 that each and every member be allowed to market their product 
 through channels other than this association. 
 
 So those of you, who have been in doubt as to the above ques- 
 tion and have hesitated to become members at this time on that account, 
 need not hesitate any longer. 
 
 WILL JOIN LATER 
 
 Some few inquiries have been received at this office saying in 
 effect that they approve of the movement, and while they do not wish 
 to become members at this time, they will come in later on. To such 
 we would like to say and ask the question, "Did it ever dawn upon you 
 that if all the growers acted thus, that there would, and could, be no 
 association for you to join?" If this movement should fail to be a 
 success, it will be on account of those of you who have been hanging 
 back and waiting to see what the other fellow will do. Of course, 
 such hanging back is to be expected. It is so in most undertakings. 
 Still it should not be so in this undertaking. For no one member is to 
 receive any special benefit. The benefit will be mutual. Everyone will 
 benefit alike. Absolutely no one is feathering his own nest. It seems 
 that some have the idea that they are being "worked" for their money, 
 while the fact is, those of us who are promoting this movement are 
 working for you, for your interest ; we are your servants. Through 
 your representatives at Chicago, you have asked us to do this. Why 
 should you then hang back and retard the progress ? Do you not think 
 you are a queer boss, tell us to do something and then refuse to act 
 according to your dictation ? 
 
 From the above paragraph you might get the impression that the 
 growers are not taking hold of this thing very readily. But such is not 
 the case. While the fact that some people are hanging back is in a way 
 discouraging, we also have other growers who come to the front 
 promptly, which more then offsets the other kind. 
 
 For instance, one member, recently, wrote to us as follows : 
 "Enclosed you will find my application for membership 
 and remittance, $50.00, for five shares of stock. I must say 
 that this association will be a great help to ginseng and golden- 
 seal growers." Adding, "I have never sold any roots yet and 
 have never been tricked. " 
 
 You will note here is a grower who has just started a ginseng 
 garden and the first thing he does is to look out for a market. He has 
 
 25 
 
nothing to sell at the present time, does not expect to have anything for 
 three or four years, yet he prepares for the future. Do you not think 
 that some of you older growers, who have roots piled up ready for the 
 market, should take a little more lively interest in this matter ? 
 
 . .„ DISTRUST OR LACK OF CONFIDENCE 
 
 For some reason or other, it seems there exists a certain distrust 
 or lack of confidence in the minds of some of the growers. It seems 
 they have not full confidence in the honesty, business integrity or finan- 
 cial responsibility of those active in the promotion of our association. 
 That this, if allowed to spread, is liable to prove a serious handicap in 
 the association's progress, retard its growth and prolong the time of its 
 becoming active, can hardly be doubted. 
 
 For instance : One grower writes in a sarcastic way : 'T am too 
 ^stupid to see how you are going to raise a lot of money and not tell 
 
 the growers what you are going to do with it. " We presume 
 
 this grower meant no harm, but the trend of his letter indicated to us 
 that we did not have his confidence. We further presume that his 
 mind had been poisoned against us by the slander of our opponents, 
 who, in their efforts to hinder the progress of our association, are work- 
 ing hard and who, with a sanctimonious air, under trie guise of the 
 "good shepherd," continuously preaching "brotherly love," are resorting 
 to all sorts of subtle means, hoping in their despair that they might 
 defeat our purpose. In order to lend prestige to their contentions, they 
 even quote scripture to substantiate their claims. But when investigated, 
 their motives are found to be purely selfish. 
 
 The writer does not at all object to the knocking of our oppon- 
 ents ; for, he believes, that the knocker is really our best advertiser. A 
 fair minded person will not be influenced by a knocker. Henry Ford's 
 automobiles are being ridiculed at every turn ; it is the best and cheap- 
 est advertising Mr. Ford gets. The more people knock, the more auto- 
 mobiles he sells. But in our case it might have the tendency of retarding 
 the progress for a time. 
 
 We touch upon this subject fearing that there might be others 
 who harbor such distrust and knowing that, if such should be the case, 
 it might retard the progress of our association, we wish to invite and 
 urge investigation to assure yourself of the business integrity, as well as 
 financial responsibility of your representatives. 
 
 As at present, while the association is still in a tentative form, 
 the writer, your Acting President, is above all the one you are asked 
 to trust, you should, for the welfare of our association, as well as for 
 your own welfare, as a grower, make investigation of his standing. It 
 is an easy matter to do. If you are not familiar with the customary 
 method of finding out one's honesty, dishonesty or business ability, let 
 us assist you by telling you how such things are done. You go to your 
 local banker, your lawyer or merchant, (the banker is the better, for 
 the lawyer will perhaps charge you a fee, while merchants often do 
 not know how to proceed in the matter and as it is not in their line of 
 business, they are likely to be careless and give you their individual 
 opinion simply to get rid of you.) But go to your banker. If your 
 own credit is good, he will be more than pleased to find out for you the 
 
standing of the person whom you are asked to trust, no matter where 
 that person may be, whether in this or some foreign country. 
 
 So if you harbor any doubt as to the business integrity, etc., of 
 your representatives, please make the proper investigations. 
 
 Your Acting President is pleased to be able to refer you, by per- 
 mission, to the National German American Bank of Wausau, Wiscon- 
 sin. You may also inquire of any of the following: First National 
 Bank, Marathon County Bank, Citizens State Bank and Wisconsin Val- 
 ley Trust Co., all of Wausau, Wis., but as most of his business is being 
 done through the first named bank, that institution should be in better 
 position to give you reliable information. He could also refer you to 
 Chicago banks, as well as banks on the Pacific Coast, but the above 
 should suffice. 
 
 Please do not think that the writer feels in any way slighted, 
 because people, who do not know him, should harbor distrust. But 
 before letting such a thing keep you from helping yourself, by joining 
 the association, make investigations and thereby do yourself, as well as 
 other growers, a favor. 
 
 WHAT MONEY RAISED FOR SHARES IS TO BE USED FOR. 
 
 This question is answered in part in the Prospectus and By- 
 Laws. But in order to give more light on the subject, it might be 
 stated that the first thing- that money will have to be used for after 
 enough has come in, so that, in the judgment of your representatives, 
 our association can hope to do business successfully, is for the purpose 
 of making investigations of the market. This may necessitate sending 
 a man or a delegation of men to China. The fact is, some growers 
 have already written us, saying in effect that we should waste no time at 
 all in making investigations on this side of the water, but go to the seat 
 of our trouble, to China, at once. The writer agrees with them, for as 
 the market for ginseng is in China, that is the only logical place to in- 
 vestigate. But what some few of us think the best way of procedure, 
 will not govern. It is a matter for your Board of Directors to settle. 
 And your Board of Directors, having no desire of spending their own 
 money and that of a few growers in a hopeless effort, will not meet to 
 discuss this matter until enough applications for membership have 
 come in, creating a capital sufficient, so that the association can hope 
 to do business successfully after the investigation of the market has 
 been made. 
 
 The writer wishes to assure you that he will endeavor to conduct 
 the affairs of the association in such manner that, whatever will be the 
 outcome, no one may have reason to point at him with scorn or shame, 
 except perhaps our mutual enemy and in his case, we would suggest 
 that when he does the pointing, he should stand before a mirror to see 
 whom he is pointing at. 
 
 This may look rather gloomy to some of you, but not so to us. 
 "Just cheer up, the worst is yet to come." 
 
 RULES TOO STRICT 
 Some few have written us indicating that the rules of our associ- 
 ation as set forth in our By-Laws are too strict. With all such we 
 
wish to plead most earnestly and ask them to try to get out of their 
 mind that an association of this magnitude can be conducted without 
 strict rules based on sound business principles. Strict rules avoid all 
 future controversy and disagreeabilities, where on the other hand, 
 flimsy or fogie rules lead to failure. 
 
 Let us profit by what others have done. We are not leaders 
 in this co-operative movement. The California fruit growers, for in- 
 stance, through their patient efforts covering a period of about twenty 
 years, have developed a most remarkable co-operative marketing asso- 
 ciation. It is said, that in 1892, the farmer, who is now president of the 
 California Fruit Growers' Exchange, sold his oranges at 10c a box. It 
 had cost him 50c to raise them. Through co-operation, the growers 
 have eliminated the unnecessary middlemen and while in spite of the 
 production of fruit having increased manifold, the growers, through 
 intelligent co-operation, are today receiving a very handsome profit for 
 their labor. 
 
 And talk about strict rules ! Members of that association bind 
 themselves by an "iron-clad' contract, agreeing to market their crop 
 through the association. And failure to do so, gives the association 
 not only the right to exact a fine, but under the contract the association 
 is legally authorized to enter the orchard of its members, at the mem- 
 ber's expense harvest the fruit and sell it. 
 
 That association, in its early days, undoubtedly also tried out 
 the "brotherly" method, but it was not until after it adopted strict 
 rules and conducted its affairs along the lines of sound business princi- 
 ples that its undertaking became a success. 
 
 ARE THE GROWERS IN NEED OF AN ASSOCIATION? 
 
 Some few seem to be of the opinion that no association is neces- 
 sary. We hardly know how to answer ; for, anyone who has given the 
 matter any thought, cannot help but come to the conclusion that the 
 growers are in most urgent need of an association. 
 
 Co-operation in marketing should appeal to every one, especially 
 to the smaller grower. Have you ever noticed how a buyer will slight 
 a small lot of roots, from a few pounds to a hundred pounds? You 
 tell him about it and he will say : "It is hardly worth bothering with, 
 but you send them in and we will pay you a good price," — the good 
 price part being left entirely to the buyer. If, however, all these small 
 lots were put together at one central point, they will make a large lot 
 and the buyer will be very glad to give it the proper consideration. 
 
 Marketing these small lots individually has another more serious 
 bad feature. It has a tendency to lower the price of ginseng in general, 
 which comes about partly because the buyer cannot afford to trouble 
 buying up these small lots separately, except at a low price, and also it 
 is as a rule the small grower who first loses his courage in times of a dull 
 market and he lets go at any old price and congratulates himself for 
 being lucky enough to dispose of his roots before the bottom dropped 
 out entirely and before the Chinese quit using ginseng altogether. The 
 result is, that the buyers, by buying up many of these small lots at low 
 prices, find that all these small lots, when put together, make a big lot 
 and their immediate wants being supplied, they dread paying a higher 
 
price for the larger lots ; consequently, a tendency of a general reduction 
 in prices. But this is not yet the end. The buyer who bought the 
 roots at a low figure is thereby in turn enabled to sell at a low figure 
 to the Chinese exporter, and so on down the line to the consumer. We 
 need co-operation, and need it badly, if we want to successfully con- 
 tinue the culture of ginseng. 
 
 To date most growers have not gotten rich at growing ginseng. 
 Some of the growers have not even played even in the undertaking. 
 They may think they have made a profit, but they have not. They 
 have considered the gross receipts a net gain, when, if they had 
 charged up the business with the labor, shade arbor, etc., they would 
 find themselves lucky if the account did not in reality show a net loss. 
 
 The writer is personally acquainted with a firm, which, on an 
 investment of $3700.00 in the growing of ginseng, in eight years' time, 
 made a net profit of over $41,000.00. Its gardens covered only 
 three-fourths of an acre of ground. So that the money was not made 
 so much in the growing, but was made in the marketing end. Its pro- 
 duct was not sold at any old price or at any old time, but was sold judi- 
 ciously. The prices the firm received for its dried roots were never 
 less than $4.00 per pound and reached as high as $10.50 per pound or 
 averaging about $6.00 per pound. 
 
 It would seem that such a successful concern would be amply 
 able to continue marketing its own product, would not bother at all 
 about a co-operative association. But we find it is heartily in favor of 
 our association, for it realizes that, if the present slipshod methods of 
 marketing, practiced by many growers, continues, the time is not far 
 hence when it cannot obtain more for its product than the average 
 grower. 
 
 What applies to ginseng, equally applies to goldenseal, so far as 
 marketing is concerned. While the prices obtainable for goldenseal to- 
 day are fair, it is only a matter of time, unless we co-operate in market- 
 ing, when the middlemen will get the profits justly belonging to the 
 growers. Even now, the middlemen are getting more than their just 
 share. The writer recently sold a little less than $2000.00 worth of 
 goldenseal (mostly fibers) at $4.90 per pound, but upon investigation 
 found that the druggist was at that time paying $6.85 per pound to the 
 wholesale druggist. So you see there is $1.95 per pound going to the 
 middleman even now, most of which should and will go into the pockets 
 of the growers if we co-operate through our association. 
 
 Owing to the pressing of the writer's personal business during 
 the months of February and March, he has been unable to give the 
 association matters the attention that it should have received, any 
 further than taking care of the correspondence, which, by the way, has 
 been quite extensive. For the next month or two, we expect to be able 
 to give more time to the affairs of the association. 
 
 Please do not let the fact of our being busy make you hesitate to 
 send in your application for membership or write us and ask questions. 
 Let them come right along, both will receive prompt attention. 
 
 We would like to be in position to give you at least a monthly 
 report. But, as this would entail some expense, we will, unless the 
 present members think best to go to such an expense, have to contend 
 
 29 
 
ourselves with a brief monthly report in "Special Crops," whose editor, 
 Mr. Goodspeed, has kindly offered to publish anything our association 
 might wish to say free of charge. But as there are some things that 
 for business reasons should not be published in a public publication, it 
 being information that only members are entitled to, we can not tell you 
 all through that publication. 
 
 Of course, after our association is once beyond its tentative 
 form, has become active, then it will have a publication of its own, 
 through which its members will be kept constantly informed. 
 
 However, if it is the wish of the present members to begin issu- 
 ing a private publication at this time, advise us to that effect and the 
 matter will be taken up for consideration by your Board of Directors. 
 
 Thanking all those of you who have become members for your 
 prompt response, and trusting that we may not only have the application 
 for membership of many others by early mail, but that we may have 
 your contniued good will and co-operation in the future as well, we beg 
 to remain, Yours very truly, 
 
 AMERICAN GINSENG GROWERS ASSOCIATION, 
 
 By J. H. Koehler, Acting President. 
 
 FINANCIAL STATEMENT 
 AMERICAN GINSENG GROWERS' ASSOCIATION 
 April 30, 1917. 
 
 By stock subscriptions to date $1910.00 
 
 To Penn Kirk for advertising $ 11.25 
 
 To letter files .85 
 
 To Secretary of State, Incorporation fees 10.00 
 
 To Stenographer fee at Chicago meeting 3.20 
 
 To Recording Articles of Incorporation .25 
 
 To 1 book (name register) .75 
 
 To Mrs. A. L. Kelley, stenog. service at Lansing, 
 
 Mich. 35.10 
 
 To Postals 17.55 
 
 To Postage stamps 28.10 
 
 To Stamped Envelopes 21.06 
 
 To Stationary 5.68 
 
 To Telegrams 3.53 
 
 To Circulars and Envelopes . 222.05 
 
 To Balance due on stock subscriptions 102.00 
 
 To Nat. Germ. Amer. Bank Certificate of Deposits 
 
 bearing 3% interest 1200 
 
 To Nat. Germ. Amer. Bank deposit subject to check 248.63 
 
 $1910.00 $1910.00 
 
 Respectfully submitted, 
 
 By J. H. Koehler, Acting President, 
 AMERICAN GINSENG GROWERS' ASSOCIATION. 
 
 30 
 
State of Wisconsin ] . 
 }-ss. 
 Marathon County J 
 
 J. H. Koehler, Acting President of the AMERICAN GINSENG 
 GROWERS' ASSOCIATION, being duly sworn, deposes and says 
 that the above is a true and correct statement as taken from the records 
 of said association. 
 
 J. H. Koehler. 
 Subscribed and sworn to before me this 30th day of April, 1917. 
 
 Chas. E. Parker, 
 Notary Public, Marathon County, Wis. 
 My commission expires Jan. 26, 1919. 
 State of Wisconsin ] 
 
 }-ss. 
 Marathon County J 
 
 H. G. Flieth, Cashier of the National German American Bank of 
 Wausau, Wisconsin, being duly sworn, deposes and says that the 
 amounts of money on deposit to the credit of the AMERICAN GIN- 
 SENG GROWERS' ASSOCIATION in said bank is true and correct 
 as stated in the above statement. 
 
 H. G. Flieth. 
 Subscribed and sworn to before me this 30th day of April, 1917. 
 
 Chas. E. Parker, 
 Notary Public, Marathon County, Wis. 
 My commission expires Jan. 26, 1919. 
 P. S. — Since the above statement was made Jul. Voltz, of Wis- 
 consin has subscribed and paid for 5 shares. Also $50.00 have since 
 come in on account of balance due on stock subscription — May 10, 1917 
 
 LIST OF MEMBERSHIP 
 Following is a list of names of those who have made application 
 for membership to April 30, 1917, arranged by States, together with 
 the number of shares subscribed for by each. It might be stated that 
 while many have subscribed for one share only, many of these have 
 stated that they want more later on. 
 
 CONNECTICUT 
 
 No. of Shares 
 
 Frembd, Henry 3 
 
 INDIANA 
 
 Hetrick, L. B. 3 
 
 Wanstrath, Theo. 2 
 
 IOWA 
 
 Larson, Peter M. 2 
 
 Peterson, Andrew 1 
 
 KANSAS 
 Morgan, Benjamin H. 1 
 
 MISSOURI 
 Overton, Robert B. 1 
 
 Schuemer, Barney 5 
 
 MICHIGAN 
 Brehm, G. A. 5 
 
 Brigham, Dexter E. 1 
 
 Brown, Eugene O. 1 
 
 Discher, Wm. 5 
 
 Dressel, E. L. 1 
 
 Enterprise Ginseng Co. 5 
 
 Grant, John F. 1 
 
 Hain, R. W. 1 
 
 Hayden, Joe 1 
 
 Heimbach, D. U. 1 
 
 Kezar, Walter P 1 
 
 Knowles, Frank 2 
 
 21 
 
LIBKHKY OF CONGRESS 
 
 Knowles, L. F. 2 
 
 Jordan & Bovee 2 
 
 Nutting, Burt 1 
 
 Olney, F. B. 5 
 
 Philbin, L. R. 1 
 
 Pierce, Dale S. 3 
 
 Reynolds, W. W. _._1 
 
 Vining, C. W. 1 
 
 Warren, W. W. 10 
 
 MINNESOTA 
 
 Burnett, W. J. 1 
 
 Carlman, Oscar E. 2 
 
 Dittrich, Eugene, 1 
 
 Erkel, F. C. 1 
 
 Farrar, C. E. 1 
 
 Flood, Gust 2 
 
 Harper, C. H. 2 
 
 Henning, Mrs. F. A. 1 
 
 Johnson, C. J. 1 
 
 Klatt, William F. 1 
 
 Klinkenberg, C. R. 1 
 
 Lord, W. H 1 
 
 Penrod, W. M. 5 
 
 Ritchie, E. E. 1 
 
 Wilder, E. L 1 
 
 NORTH CAROLINA 
 
 Sandidge & Gibson Ginseng Co. 2 
 
 Welch, John T. 1 
 
 NEW YORK 
 Cook, M. W. 1 
 
 OHIO 
 Fleming, H. V 1 
 
 Hetrick, Tracy 1 
 
 Mercer, W. H 1 
 
 RHODE ISLAND 
 Hantke, Ernest Wm. 5 
 
 SOUTH DAKOTA 
 
 Faul, Milton 1 
 
 Koehler, Mrs. Aug. 1 
 
 Koehler, S. L. 1 
 
 Koehler, Walter 2 
 
 Koehler, T. B. 2 
 
 TENNESSEE 
 
 Davis, R. A. 5 
 
 VIRGINIA 
 Merrifield, F. E. 2 
 
 Price W C 
 
 Yitoe 000 g2g 6 
 
 Heldreth, J. A. 1 
 
 Lehman, Otto 1 
 
 WASHINGTON 
 Gove, D. A. 1 
 
 WISCONSIN 
 
 Aderhold, E. C. — __1 
 
 Ames, J. W. 2 
 
 Anderson, Christ 1 
 
 Bergeson, John F 1 
 
 Buck, Harry E. 1 
 
 Crow, Frank M. 2 
 
 Damon, E. D. 1 
 
 Eberlein, M. G. 5 
 
 Ebert, Ernest J. 5 
 
 Foxen, S. T. 1 
 
 Greenfield, J. Emerson 1 
 
 Griesbach, Wm. F. 1 
 
 Hultman, John M. 1 
 
 Johnson, August 1 
 
 Jackson, T. J. 1 
 
 Kaufmann, Joseph 1 
 
 Kirchmeyer, Andrew 1 
 
 Koehler, J. H 5 
 
 Koehler, Bernhardt 1 
 
 Kurth, Frank 3 
 
 Lehnkering, C. F. 2 
 
 Leykom, C. S. 3 
 
 MacLachlan, W. G 
 
 Norin, Geo. W. 
 
 Roy, Charles N. 
 
 Schwede, J. G. 
 
 Schuchard, Percy 2 
 
 Seering, Chas. 
 
 Smith, Ole M. 
 
 Steeps, H. J. 
 
 Stumpf, Paul 
 
 Taggart, James 
 
 Ullmeyer, Christ 
 
 Vogedes, James 
 
 Wagner, Mathias 
 
 Westphal & Smith 
 
 Zahl, W. J. 
 
 Zielsdorf, William __. 
 CANADA 
 
 Guillaume, A. C. 
 
 Nicholas, John W. --.