The daily sentinel., 1913-07-30
COMMISSION PROBES
COMMUNITY LIFE
OF ITALIANS
Associated Press.

Associated Press.
Vienna, Austria, July S0.-Some
most interesting phases of Italian ru-
raj life have been investigated by the
American commission on agricultural
organization. cooperation and rural
credits. now travelling in Europe to
examine the various systems in use
on this side of the Atlantic.
At Cremona. Italy, the commission
ers inspected the Peoples bank,
which is more or less the mainstay
of the rural population. This bank
was excellently housed and was said
/ to be in an extremely flourishing
condition. From the appearance of
/ everything connected with the insti-
tuition this was easy 10 believe. The
I bank is not truly cooperative in prin-
ciple but is, properly speaking, a
! joint stock company depending on
/ larger commercial institutions. 1t
departs particularly from the cooper
alive idea in so far as the number
I of votes held by tht members is de-
/ pendent on the shares they possess.
On the other hand it may be called
peoples bank in so far as the object
kept in mind by the directors is not
/ primarily to make profits, but to en-
sure the betterment of the circum-
stances of the local population, who
are themselves the shareholders. 1t
may be called a rural bank for the
reason that 1T will lend money by
preference, and at a favorable rate.
To those engaged in agricultural pur-
suits. The director explained that
the bank acted in this way because
agriculture was considered the main
industry on which depended the vel
fare not only of the neighborhood,
but of the whole nation.
The bank was willing to lend on
any reasonable security. collateral,
land or endorsement, the latter prac-
tically amounting to lending on
character. The rate of interest re-
mains almost always below five per
cent, and the director secuted the
idea of any serious trouble arising
between the bank and its clients or
shareholders.
The working of the Cremona bank
seems to be guaranteed to some ex-
tent by the flourishing Central Banca
di Roma, and Ultimately by the ap-
Iproval and watchful eye of the gov
ernment, but II cannot be said to be
subsidized or aided by the state. The
expenses are largely kept down by the
altruism of the officials, most Of
whom give their services either gra-
tuitiously or at an almost nominal
wrge-a principle regarded with sus-
pieion by many members of the Am
erican commission. and stigmatized
by some as suicidal policy.
One of the chief functions of this
bank is to make advances to facilitate
the WORK of the cooperative society of
local farmers, having for its object
the improvement in agriculture and
the encouragement of modern meth
DDS on the part of its members. Mem
bership may be had on easy terms
and carries with it the right to buy
from the society, fertilizer, machin-
cry, etc, at practically cost price. For
this purpose the credit of the bank is
called into play.
Another institution visited by the
commissioners was the Cremona Fer
tilizer factory, also cooperative, and
apparently very flourishing. The
phosphates manufactured here are
sold exclusively to the members of
the cooperative society at price al
lowing for a reasonable profit on the
shares held by the members them
selves,
These three orgsnizations-th
bank, the Farmers Cooperative So
ciety and the Fertilizer factory-are
in theory Independent though IL was
made plain that in practice their
membership and their directorate ov-
erlapped largely, and that they work
ed together for mutual advantage.
About ten miles from Cremona in
the village of Soresina, is situated
what is presumed to be the largest
cooperative dairy in the world. hand
ling the products OF 1000 cows. Here
every single by-product was being
fully utilized. The main product of
the factory was soft cheese. but this
was supplemented by the making of
skim milk butter and milk sugar.
Finally the rinsings were fed to hogs.
AS to the financial results, there
is general law in Italy which lays
down that in the case of cooperative
societies no shareholder shall re-
ceive a dividend greater than per
cent. but the members of this dairy
were receiving 80 per cent. The ex-
planation is that ten years after the
formation of the society all the share
capital was paid off, after which all
the buildings and machinery were
paid for. Now there are no share
holders receiving dividends, but
simply members. among whom the
annual profits are divided as a bonus.
But If this annual bonus be reckoned
as dividend on the original value
of members shares. it amounts to 30
per cent.