The herald., 1896-02-02

pay $3.50 to So per sack. On dry goods
and shelf goods generally the profit to
the stora keeper ran anywhere from
100 to 500 per cent. Nor was this all
for not only was from l to p per cent
per month charged on overdue &C
counts, but the local tradesmen sough,
to make profit running from to q
per cent ON the produce which the
farmer, of necessity, was forced to sell
to them. And all this, up to a few
months ago, in the face of the hard
times, a dry year. and with farm pro-
ducts steadily decreasing in value.
1t WAS impossible for such state OF
affairs to continue. The wealthier
farmers, of course, soon adopted the
habit of making their principal pur-
chases abroad, fact that in many
ways did not conduce to the general
welfare. The poorer ones little by lit
tie became more and more FESTIVE, more
especially as it dawned upon them that
they we're losing half of all they could
raise. A number therefore determined
to strike out for themselves, and it was
decided as far as possible to follow the
example of Compton. After facing a
certain amount of opposition, az asso-
citation of sixteen members was formed,
and q cooperative store WAS opened
with capital of only 500. This hap
pened last August. Since then the
membership has rapidly increased, un-
til at present the share capital is some
thing IN excess of $500. Now this lit
tie store, started in an out-of-the- way
part of the world only three months
ago, has been making sales aggregating
on an average of $1,000 a month 1t is
impossible to estimate the saving to
the community since its opening, but
one thing is csrtain, that the coat of
commodities has been reduced fully 50
per cent, besides securing to the farmer
the full market value received for his
own produce.
Though the bylaws OF the Compton
Association have been most carefully
prepared and have undergone frequent
alterations as defects from time to
time have come to light, the Fallbrook
people found one very serious flaw, viz:
that no legal provision was made for
limiting the individual liability Of the
shareholders. This. which to many
seemed very grave defect, was oppor-
timely overcome by Incorporating
under law passed by the last legisla-
ture which regulates the formation and
liability of cooperative associa' ions.
This law, which is both fair and wise,
makes it impossible for one individual
to have greater interest than any
other, and while not specifying the
liability Of the association, makes it
possible for the shareholders to arran. g
this to their mutual satisfaction, and
practically allows them to form COR
poration, the liability of who's, mem.
bers is distinctly limited. The Fall
brook farmers therefore availed them
selves Of this law, and vera among the
first, il they were not actually the very
first, to cooperate under its strict
legal provisions.
1t might be we'll to remind farmers
generally that both at Fallbrook aud
Compton the stores were opened in
the face of great difficulties. In both
cases the money was forthcoming only
their own interests. The undertakings
we're not started until the people were
actually forced in self protection to dc
some hing to save what little they still
possessed; they were, therefore, not
attempted recklessly nor on large
scale, but only after due delibera' ior
and with very limited capital. While
the stores we're opened under the i'm.
mediate direction Of farmers them
selves, the management was placed ir
the hands of competent business men
Limited capital, of course, made the
most rigid economy necessary, and
as it has been found in Other
cases, the sacrifices thus entaileo
brought lesson leading tC
success. Not only did these
stores directly benefit the farmer
but their success reused certain feel
ing of pride in something away from
the mere routine of the far There
fore farmers elsewhere should receive
great encouragement from these ex
periments, and it matters not what
may be their burdens or the difficulties
in their way, they should attempt Il
make some change, rememb ering thai
in cooperation as in all human effort
difficulties and not facilities mark the
true path to success.
So many cooperative undertaking.
have been unsuccessful that it nigh
be we'll in conclusion to mention some
causes leading to failure, more especi
ally as at both Fallbrook and Compton
every precaution was taken to prevent
those very causes from operating
against the enterprise. In most casel
failure has been due to the enterprise
being begun on too large scale or tt
their being managed by hslf-heartet
| and inexperienced men. Farmers
should therefore carefully keep il
mind that it is the practice and not tn
theory of cooperation that so Otter
comes to grief, and they should be par
ticularly on their guard against it's tw'
! worst enemies. These are fount
among it's enthusiastic friends ant
among class of petty trader
who will stoop to any act that ma,
destroy competitor. The two worl
mischief together, for the small trade
is quick to avail himself of any over
reaching or mistakes on the part of hi
opponents, knowing full we'll tina
while nothing succeeds like success
equally nothing is more damaging thai
failure. Absolutely essential is
then, that in the interest of co-opers
ton, which is 80 closely interlinke
with the future of our agriculture
communities, no cooperative exper
ment shall be undertaken hastily o
recklessly, but on the contrary, if ur
dertaken at all, only after every ste
has been carefully measured to insur