The Tucumcari news and Tucumcari times. [volume] (Tucumcari, N.M.) 1907-1921, 1914-06-18

opinion seems 10 have been that two
adses contributed 20 the failure. nrst,
state aid. which seldom really helps
a cooperative society. ruined these
projects by encouraging the construc.
ton OF warehouses which were either
not needed or which we're bigger than
needed; second. the members sought
to make money out Of them instead OF
using them simply to prevent waste
In shipping.
Bank NJ NIeder Mabau.
In 1874 at a German village OF some
$50 Inhabitants local t~radesmen
formed n loan and savings bank. From
the very first they forgot that cooper
alive credit banks are primarily
formed to lend money only to those To-
cal members who will use Il for 10
cal purposes. They were too anxious
to get rich quick. by n promise OF ex-
c%eedingly high rates OF interest they
attracted patrons from the most re-
mote points until there was on de-
posit In this little village cooperative
bank almost 1000, 900. Such an
amount OF money vas OF course far In
excess OF any needs which the mem
bers themselves might have as Dor.
rowers. Consequently the bank be-
gan TO do business with outsiders.
Funds were 81 plentiful and the de-
mands relatively so small that II grant.
ed to Its debtors extensive credits. II
became known that credit could easily
be obtained at that village bank and
spectators far and hear fiocked to II.
II risked its money In financial
schemes outside the limits OF the VII.
lage.
The cashier. who had no particular
fitness for the position. also had charge
OF church funds and other public
funds. Besides this. he was conduct.
ing a large business In a hotel. There
seems to have been no one on the
board OF managers OF any particular
business iuds ment or ability. Even
integrity was not present, for the cash.
Ter ended his year with forgery and
was sent TO prison. II was not sur
prising. therefore, that in December.
1911. the Nieder Mabau Loans and
Savings bank was declared insoivent,
the natural results OF undue greed. OF
tho spirit OF speculation. Of incompe-
tence. and OF dishonesty.
Cooperative Bank at Darmsted.
More recently the cooperative ag-
ricultural bank at Darmsted. formed
In 1882. reached n point where Il was
unable TO meet It's obligations. Its
that OF the Nieder Mabau bank, al
though II operated upon n much larger
scale. In connection with this bank
there was also either gross incompe-
tency or dishonesty. In one case, for
example, over a million dollars was
worked. Other equally hazardous en-.
.terprises were financed by this con.
Germ contrary to all principles OF CO.
operative credit and equally contrary
to all rules OF sound finance. Go.
operative banks are not f~ooiproof."
and OF course the cooperative bank
at Darmsted failed.
Cooperation may fail even in Den.
mark. the country In all Europe most
completely organized for rural bust.
ness. There n brilliant public man
got In the good graces OF those inter.
ested In cooperation and promoted Q
scheme for uniting many cooperative
societies In one big concern. Here
there was not so much incompetence
as dishonesty. and the venture ended
In financial failure for the members
and in imprisonment for the dishon.
est promoter.
Causes Of Failures In America.
Cooperative failures so far as Amer.
lea Ia concerned are traceable large
ly to these causes
In the first place II has always been
difficult for the American 20 compre-
bend the fact that cooperative con.
Germs are not money making. divi.
dend declaring. profit producing con-
Germs. They do not seem TO realize
that the sole excuse for the existence
OF the cooperative organization as o
middleman Is In order that n middle
mans function may be performed
without waste and without profit.
In the second place the spirit OF
tho American farmer Is not sufficient
ly unselish. He has been operating
for 80 long on the competitive basis
that II Is difficult for him TO acquire
a spirit OF unselhsh loyalty TO the
spirit OF tho organization to which he
belongs, II an opportunity presents IL
self under which he can net @ profit
by abandoning the cooperative soci.
ETY. and dealing with a private dealer,
he embraces 1t at once. without realiz-
Ing that In tho end this will ruin his
cooperative concern and leave him
IN tho hands OF the privately owned
dealer who has been for generations
working him for large profits.
Ia the third place, practically all
tho American concerns which have
failed have been organized on the Joint
stock plan. With the voting power
distributed In proportion TO the cap
ital invested 1t has often occurred
that the interests OF those who were
In control Of the majority Of the stock
were a~ntagonistic to the interests OF