Tensas gazette. [volume] (St. Joseph, La.) 1886-current, 1915-10-01
ONLY MEN CAN COOPERATE
Much Confusion In Use Of Term "co-
Operation" a. Applied to Agrl-
cultural Efforts.
(By G. HAROLD POwELI.)

The cooperative organization diff
fers fundamentally from the capital
stock corporation conducted for profit.
A capital stock corporation for profit
is organized to return an earning and
a profit on the capital used In the
business. The basis of administration.
control and the distribution Of earn
ings is the capital invested in the un-
dertaking. In a cooperative organi-
zation. the basis of control is the
membership. where each votes equal
ly irrespective of the volume Of his
business: though the basis OF control
is often made the product Of the
members, where each votes In pro-
portion to the volume of business
contributed, while the earnings In
either case. II they occur. are re-
turned to the member in proportion
to the volume Of business he trans
acts through the organization. The
basis of the cooperative organization
is men: of the capital stock corpora
ton. money. Capital cannot cooper
only men can cooperate. When the
degree of cooperation Of q member
is MEASURED by the capital or the vol.
dme lof business contributed. then the
members as men are not co-operat'
ing; either capital or a product is the
basis of cooperation through the mem
Der as the medium.
There is much confusion in the use
Of the term cooperation" as applied
to agricultural efforts. It Is common
ly applied to any group of farmers
who associate themselves together.
They may organize as members of q
voluntary unincorporated association
Of individuals: or as an incorporated
farm crops for profit or for other pur-
poses, or as nonprofit corporations
without capital stock. In California,
for example, the term Is applied to
both profit and nonprofit corporations
organized to handle farm products,
whether organized and controlled by
the producers themselves. or by 9TH
ers. In other parts of the country,
the same uncertain use Of the term Is
applied to various kinds of agricul-
tural movements. The term needs to
be defined by the federal and state
statutes. It is believed that its use
as applied to business organizations
in agriculture should be restricted to
incorporated associations, societies,
exchanges. or agencies which are
formed exclusively for the benefit Of
the members: whose voting power is
based on equality of membership;
whose membership is confined .exciu-
sively to active producers. the men,
bership ceasing to exist when the pro-
Queer withdraws from the organize
ton, and whose earnings are distrib-
uted by each member, after a fair
rate of interest is paid for the use of
capital actually employed In the bust
ness. II any. and other overhead
charges are deducted. A cooperative
organization, therefore, Is not cor
poration in which the capital is con-
tributed primarily in order that 1t may
earn a profit; nor one composed of
producers and nonproducers: nor one
in which the producers product is
handled by a corporation for the bene-
fit of the stockholders rather than for
that of the members: nor one In
which the membership is not under
the control of the organization: nor
one in which the membership do not
actually control the organization. It
is an association of farmers who unite
in an effort to handle their common
interests through an agency which Is
controlled by them. on the principle
of an Industrial democracy. and ex.
clusively for their benefit
A cooperative association may be
incorporated as a capital stock cor
poration or as nonprof1t corpora
ton without capital stock. II formed
as capital stock corporation 1t may
still be legally cooperative II the laws
under which 1t is formed permit the
members to manage its affairs along
cooperative lines. or II the statute
provides the method Of voting. the
method of transferring stock. the
limitation of membership and the dis
tribution of earnings according to Co
operative principles. There has been
little effort by the states to enact
laws that will permit the organiza-
ton Of purely cooperative associa-
lions Of farmers. It il therefore Inn
possible in most states for an asso-
citation to be formed that can operate
securely along cooperative principles,
though as q matter Of fact many asso-
Citations so formed do. by the consent of
the stockholders. actually operate CO
operatively.