The Madison journal. (Tallulah, Madison Parish, La.) 1888-current, 1914-10-03
KEEPING THE OUTSIDER OUT
Mere Matter Of investment in Some
Cooperative Enterprises Fur.
nishes Allurins Attraction.

many SOSdlieu ldTUleTS dSSOCldIOnS,
such as cooperative creameries, fruit
exchanges, shipping agencies, tele.
phone companies and the like, are
made up largely of non-farmers. This
may be due to a desire on the part OF
the farmers TO enlist the aid of anyone
and everyone in raising the capital. It
may be due to the desire on the part
or men to have hand in the manage
ment OF the business, writes b. II. Hib-
oard In Denver Field and Farm. Or
the mere matter of investment In some
cooperative enterprises as now organ
lied furnishes an attraction, and when
there are no rules to bar the non-farm-
er he comes in to get dividends. In
all cases il is a matter of grave doubt
whether such outsiders should be al
lowed to connect themselves with the
association. When difficulty is expert
enced in raising the capital among the
farmers the temptation to take it from
any available source is great, and
when all rights are properly safe
guarded this procedure may not prove
dangerous.
But safeguarded they must be or
these outside investors having inter
ests unlike those of the farmer viii
become force in twisting the course
of the association in the direction of
stock dividends instead of toward ia
Vorable results to each member on
the basis of business furnished When
outsiders want to get control there is
but one thing to be done; they must
be kept out. When, for example, a
farmer member retires and perhaps
moves to town the tendency Is often
to treat him still as farmer and let
him continue his membership. The
danger In such case may not be
great, but the safest way is to keep the
management. at least, and a great ma
1ority o. the membership within the
active farmer class. II retired farmers
can be of service to the association
their assistance may be made availa-
BILE, but their authority should be re-
stricted. Agricultural cooperation
must be not only for farmers but b.
them.
No doubt any organization must be
businesslike if it undertakes to do bust.
ness with hope of success, but in this
respect cooperative company is in
greater need of caution than a private
concern. The reason is that response
bility is unified in a private concern
and diffused in a cooperative concern.
A hundred farmers who belong to a CO.
operative company are not likely to
spend more than two or three days a
year attending its meetings and trans
acting its business. The directors are
not likely to take quite the vital inter
est in the affairs of the company that
is taken by railroad or bank directors
in the affairs of their respective com
panies, since in the one case the in
vestment is small and In the other
case large, and again, the cooperative
company usually makes but a modest
return over what could be obtained
otherwise.
All these facts point to the necessity
of thoroughgoing business plan for
the guidance of a cooperative COM
pany SO that the members may at any
time know how matters stand and in
order that those in charge may be held
to a strict accounting for all they do.
There should be an adequate but sim
pie system of accounting such that
expenses and investments may be
taken care of in a regular and eQuita-
BILE manner. For instance, it is unbusi-
nesslike and unfair to deduct from the
price OF butterfat for a given month
or two a sum sufficient to buy a new
vat or separator. Suppose, for exam
pie, a given patron is furnishing al
most no milk at that particular time
he escapes payment of his proportion
of the charge.
Or suppose given patron to be
furnishing the very maximum amount
for the year he pays more than his just
proportion Of the charge. Again. in
case the equipment purchased is to be
used over a considerable period of
years the members of the company at
the time the purchase is made stand
the expense while those who succeed
them get much of the value. 1t Is
clear that the only fair way to adjust
these matters is to provide funds out
of which the various expenditures may
be made. Preferably closely related
cooperative associations such as a
group of creameries or a group of fruit
exchanges should use the same system
of accounting so that comparisons may
easily be made, and that declarations, IL
such be formed. may deal intelligently
with individual associations with re-
spect to audits or other authority
which may be delegated to the central
body.
Eradication of Mites.
II will be hard to eradicate mites
from old houses, but persistent efforts