American Falls press. [volume] (American Falls, Idaho) 1907-1937, 1914-07-30
WHY COOPERATION SOMETIMES FAILS

Copenhagen, Denmark. - Co-opera-
ton Ia not f~oolproof, consequently It
does not always succeed. I~nexperi-
ence, incompetence. and dishonesty
will wreck any private business and
they will. OF course. wreck any co
operative business. IL is necessary
therefore, for enthusiasts to remem-
Der that there Ii no mystic virtue In
cooperation which enables II TO tri-
umph at all times. Those OF us who
are trying TO record what we have
seen OF cooperative business at home
and in Europe. would not be treating
the public fairly II we left the inn
preston that there are no failures
among cooperative enterprises.
Both at home and abroad there have
been many failures. Certainly those
Interested are entitled TO know as
much about It's failures as about its
successes. They are entitled to know
also what causes have led to co-opera-
uve failure.
Failures In America.
Many cooperative stores organized
with much promise have failed. Gen
orally speaking gross incompetence
has wrecked them. They are like
other mercantile establishments In
hat they demand. as a condition
precedent to success. skilled manage
ment, good business methods. good ac-
counting. cautious extension OF credit,
az well as some special knowledge OF
he goods dealt In. If these qualities
are absent failure is inevitable. As
the average cooperative store In
America IL organized it's members are
seldom bound by any agreement to
10 all their trading at the cooperative
They p~atronize Il when II is
10 their interest so TO do. II the goods
offered are poor, or N bad manage
ment advances the price unduly. or II
frequent minor mistakes occur the
members abandon the venture like a
sinking ship.
AS | have said. cooperative stores
IN order TO succeed must have skilled
management, good business methods.
good accounting systems, and must ex-
lend credit cautiously, all in addition
70 the special knowledge essential In
every such enterprise. So far as can
discover. however. the stores which
have failed have not only lacked one
or two OF these essentials OF success
but they seem often to have lacked all
OF them. More than once Il has hap
Dened that a cooperative store com
49, - F,r..aI An.anoa annaa ufnra.
keeper has lost all his money In an
unsuccessful mercantile venture and
can secure capital for a new venture
only In this way. Sometimes an am-
hiticns farmer has organized a com
psny In order that n son who has been
away TO business college and feels
above farming may have a chance 10
earn a living without working upon
the farm. II is characteristic also OF
cooperative American stores-and OF
other cooperative concerns In Ameri
ca also-that they have seldom been
willing to pay a salary sufficient &c
secure men OF experience and skill al
managers.
when a cooperative store managed
by a man who has a history OF moth
ing but business failures behind him
or by a youthful and inexperienced
business college graduate. or by any
other man OF the Low grade implied IN
the low salaries paid, comes into com
petition with q competent. up-to-dste
American stofekesper OF the agares
sive vigorous type often found In even
the smaller towns. the mere word go
operative" upon the align In front o
the store is not going TO avert failure
IL isn't fair 10 expect too much of CO
operation.
Cooperative FEsss Failures
Seldom. too, have so-cslled Amer
a cooperative companies been CO
operative In the true sense OF tn
word. have In mA0d M cooperative
fruit marketing society which faile'
largely because II WAS organized oil
the Joint stock basis and administers
as are other homeopathic corpors
lions. A few of the larger sharehold
ers controlled 1t. The interests OF tb'
minority were ignored. They becam'
Jealous and suspicious and accuses
those In control OF dishonesty. Email.
they demanded thai the ofioeTs s:v'
\ full report of all their nnancia
transactions and that an auditing CON