///9 Souchon Cooperation of Production and Sale in French Agriculture THE LIBRARY OF THE UNIVERSITY OF CALIFORNIA LOS ANGELES 1 GIFT Cooperation of Production and Sale in French Agriculture r BY A. SOUCHON Professeur a la Faculte de Droit de Paris, EXPOSITION UNIVERSELLE DE SAN FRANCISCO 1915 Cooperation of Production and Sale in French Agriculture Cooperation of Production and Sale in French Agriculture B Y A. SOUCHON Profusseur ;i la I'aculte de Droit de Pari EX POSl T 1 (3N i; N I V E R S K 1. 1. K DE SAN FRANCISCO rssii C(JOl»EllATliL\ OF PIIODLCTION XM SALE IN FRENCH AGRrClMLKE By A. SOUCHOiN Professeur a la Faculte de Droit de Paris. INTRODUCTION Other treatise have already been devoted by us wliolly or in part to (juestions of agricul- tural cooperation. When studying- agricultural societies we showed them making purchases in common lor their members. That is nothin"- but cooperation of consumption of objects necessary to agricultural exploitation, in this form of cooper- ation the societies have even obtained a success so great that they have left nothing to be done outside them — or very nearly so. Also, in a study of agricultural cooperation, it is useless to reserve a particular place for cooperative societies for consumption, and it is suflicient here to refer the reader to the treatise on agricultural societies. A passing mention should be made, however, of the societies of panilication, real cooperative bakeries. Most of them are found in the West of n. 1 1 OO/f ocro France and number more than five hundred. Cer- tain of these bakeries have their own cooperative mill, but this is more the exception. Sometimes in our villages there are also cooperative grocery stores. But a study of them would lead us too far from veritable agricultural associations. There is, in fact, nothing professional in the purchase of sugar or similar ingredients. In our study of Credit we have examined quite another form of cooperation, wliat is known as mu- tual credit being no other than cooperative credit. And lastly, in the treatise on agricultural insu- rance societies, we have also studied questions ot cooperation, mutual aid insurance also being no other, when everything is taken into account, than a sort of cooperation for protection against divers risks. To avoid repetition, the field before us when we wish to speak of cooperation in French agriculture necessarily is limited to what concerns, on one hand, cooperation of production and, on the other hand, the sale and transformation of agricultural produce. COOPERATION IN AGRICULTURAL PRODUCTION We have no cooperation of cultivation ; nothing comparable to the affitanze collective of the Ita- — 3 — lians, nor to the cooperative villag"es of Australia, nor to the numerous communistic attempts made in the United States. To be exact, it should he said that one might find in France a few half-hearted attempt's at cooperation in cultivation. Mention has often heen made of the village of Tirman, in Algeria, hut here we have a project rather than a realization. M. Tardy in his reports on agricultural cooperation has also shown the existence of a cooperative farm at La Faussette, in the county of Var. There are also in the South a few cooperative wine makers who have become joint proprietors of vineyards. But all this amounts to very little and constitutes nothing more than a mere social bagatelle. It is not of sufficient importance to dwell on here. It should be remarked that in our ancient rural economy cultivation in common occupied a very important place. This was tiie result of our old peasant communities and particularly of the Societes Taisibles, so called because they resulted from a tacit understanding between their members and no juridical act preceded their formation. I'he origin of these peasant communities dates back to the early Middle Ages. They were very numerous throughout the whole of France, grouping more than one family, and very often including hl'ty to two hundred persons sometimes with no ties ol relationship. For the most part these communities worked ground iianded over to them by the nobles _ 4 — on which to raise produce to pay dues to tliose nobles. They were thus more or less comparable to societies working land on lease. Sometimes, too, thev w'ere themselves owners. The soil was worked in common. All lived together, « eating from the same dishes and warmed by the same hearth ». Similar customs were maintained so long as the feudal dues bore heavily on our rural population and so long as poverty gave a parti- cular interest to forms of economy resulting from life in common. The disaggregation of our peasant communities commenced in the XVI century. On the eve of the Revolution these communities had almost entirely disappeared. In the XIX century no more than a few traces remained of them, notably in Auvergne and in the Pyrenees. This is therefore an institution which we must consider as belonging entirely to the past. But to point it out was useful, first because it is characteristic of our France of ancient days, and next because it shows us that cooperation in cultivation, put forward as ultra-modern, is in reality only a new beginning under modified aspects of a very old institution. It must be remarked also that if we have no co- operative societies doing all the work of cultivation in common, certain of our associations can have an influence on this work of cultivation, and some- times even assume a part of it. It is thus in the first place that numbers of societies, in view only of the sale and transforma- — 5 — tion of agricultural produce, are brought to impose certain rules of exploitation and demand their observance by their members. The best example in this is furnished by the cooperative butter works. We shall see the important place that these coopera- tives fill in the rural economy of certain regions of France ; and we shall have occasion to speak of their working in some detail. We may say here that the societies compel their members to choose fodder for their animals in a precise and defined fashion, and tiiat they lay down rules as to the way the stables should be kept. In certain foreign coun- tries, notably in Denmark, greater progress along these lines has been made than with us, and every- thing concerning the care of cattle is regulated with minuteness by the cooperative societies there. It is true this is not cultivative cooperation, but it is alreadv nearly approaching it, since the associa- tions go so far as to exercise authority over the manner of exploitation of the soil, of which cattle rearing is but a special form. Very often, too, we come across cooperative societies which, whilst not formed with a view to cultivation, have yet another aim than tlie sale or transformation of agricultural produce. Their idea is to aid the work of cultivation by a common elFort altliough remaining in its whole individual. Tiie best examples we can give here are those of coopera- tives for the use in common of agricultural imple- ments, societies for plougiiing by steam or plectri- — 6 — city, and cooperatives for cattle rearing and pasturage. None of these forms of association has yet reached a considerable development in our country. With allofthem we are traversing a period of trials. But we can already claim encouraging results of a nature to augur well for the near fu- ture. First as regards the utilization in common of agricultural implements; this is the more often undertaken in our country by our agricultural so- cieties, and special cooperatives for this are rare. However, there are about twenty. Most are coopera- tive societies for threshing. They are found through- out France, and one could not speak of their loca- lization. There are also societies w^hose object is the purchase and collective utilization of all kinds of agricultural maciiinery. We can notably cite that of Beaurepaire, Isere, tiiat of Cheny de Quenne and Willemer, Yonne. In the ordinary way these cooperatives, after having purchased the machi- nery, place it at the disposal of each of their mem- bers in turn. There is thus successive use much more than collective utilization. But in the course of the last few years attempts have been made to proceed otherwise by asking members to work together with the machinery, passing successively over the land of each. This brings us nearer to cultivation in common. Further, we have here a particularly tempting procedure in a country like France, where not onlv are there manv small hoi- dings, but a number of allotments parcelled up into strips whicliare not contiguous. Sucli a splitting up of properties renders the employment of machinery difticult, but this would be singularly facilitated the day that a united organization should permit of not stopping at the limits of each property. Societies for steam ploughing- are only a varia- tion of cooperatives for the collective utilization of agricultural implements, but they present a parti- cular interest by reason of the very importance of the mechanism set in motion by the association. Societies for steam ploughing were born at the same time of scarcity of manual labour and the impossibility for each owner to have his own steam plough. It is already some years since they appeared in the region of Paris, notably in the Soissons dis- tricts and the Oise. But in the beginning these were not veritable cooperatives, and we were rather face to face with commercial companies buying a steam plough and letting it out on hire to agriculturists. In practice the shareholders of the company were those who expected to use the machinery. Coopera- tion in embryo thereby already appeared. At the present time things have gone much further, and in the neighboui'hood surrounding Senlis there are regular cooperatives for steam ploughing. The dif- ference compared w ith the commercial companies already mentioned is in the fact that there are no shareholders, and that no sort of proht has to be raised from the cultivators using the machine in — 8 — common. In regard to electricity, it is no log'er a question of ploup:hing. This does not mean that the employment of electric force for running agricul- tural machines in our fields is unknown to us, but the method is little used. On the other hand, there are in our regions of large farms, particularly around Paris, numbers of undertakings possessing very complicated machinery worked by electricity. Also, the creation of cooperatives having for object the procuring of electric energy for their members has often been thought of. Attempts are being made to form such in the counties of Aube, Aisne and Eure-et-Loir. They are of too recent date to permit any definite forecast as to their success. There remain to be considered cattle rearing and pasturage in common. In another treatise we have already spoken of societies for cattle rearing. They are none other than real cooperative societies for a particular form of agricultural exploitation. They do not go so far as cultivation, but they lay down clearly defmied regulations for the choice of repro- ducing animals and the care to be given to their young. Pasturage in common is frequent in mountainous districts under an administrative form, in this sense that a great number of communes in the Alps and in the Pyrenees possess widely extended pasture lands on which all the inhabitants can send their cattle to graze. Looked at closely, this is like an association embracing the whole village, and the — 9 — legal aspect of things does not greatly mask the reality. In certain mountainous regions wliere the communes have not so widely entended pasture lands, notably in the East of France on the slopes of the Jura, the inhabitants trv sometimes to re- medy the absence of communal pasturag:e by an effort of association. They hire land on to which tiie members have the right to send all their cattle togetiier. Attempts have even been made at common possession of tlie animals. COOPERATIVE SOCIETIES FOR THE SALE AND TRANSFORMATION OF AGRICULTURAL PRODUCE After having thus treated of cooperatives of pro- duction, we come to associations for the object of sale, and sometimes transformation, of agricultural produce. The greater part of these associations are of recent origin. However, associations specializing in cheese have existed since a very long- time in the Jura and have created the world-wide reputa- tion of certain of their products, notably Gruyere. It is g:enerally stated that these societies already existed in the XU century. They were neither more nor less than veritable cooperatives for the manufacture of cheese. Each of the members brought his siiare of milk, the cheese was made by the society, and the produce was shared among all — 10 — according" to different rules and pro rata to the quantities of millv supplied by each. Numbers of these societies exist to tliis day, but no longer ^Yith the same ciiaracteristics. A sort of regression has taken place in their cooperative practice. They are are now nothing but commercial companies working for peasants who bring milk to them, but claiming from them a large profit, like any ordinary intermediaries. But this does not mean that there is no more cooperation. It subsists in the fact that the producers of the milk untite to bring quantities of milk in common to the companies. We shall come across these associa- tions again when speaking of the present develop- ment of cooperatives for the sale and transformation of agricultural produce. In studying' this development we should remark that cooperative associations of sale and transfor- mation most numerous in our country are found precisely in milk, butter and cheese regions. After these, it is among societies of vinification, or « co- operatives cellars », that we find the most important groups. There are also other very diverse coopera- tives of which we should speak. First as regards the milk industrv, we find our- selves in face of associations having for object the sale of milk without any transformation, neither into butter nor cheese. There are countries where such associations have played a considerable role. We know the history of the milk wars around cer- — 11 — tain lar^e German towns, particularly Berlin and Munich. These milk wars were provoked by the coalitions of peasants of the surrounding neigh- bourhood trying to create together a monopoly on the urban market, and making the consumer pay high prices, thanks to the power of this monopoly. Such combinations came up against the resistance of free commerce. They were always worsted and broken up. In France we have never experienced these milk « kartells ». IJut during these last years a few cooperative societies have been formed for the sale of milk in the neighbourhood of Paris, par- ticularly in the Oise. Their aim was to rescue the small producers from the domination of very strongly organized commercial companies which bought the milk very cheap of the peasants to sell it in the capi- tal at very high prolits. Naturally these coopera- tive societies for the sale of milk have had to struggle against the hostility of the companies from whose power they wished to free the cultivators. Never- theless they have succeeded, and the ({uantity of milk that they sell in Paris is estimated at about three million litres (5,250,000 pints) a year. This is still very little compare