The Madison journal. (Tallulah, Madison Parish, La.) 1888-current, 1915-09-11
ONLY MEN CAN COOPERATE
Much Confusion In Use Of Term "co-
Operation" az Applied to Agri-
cultural Efforts.
(By G. HAROLD PowELL.)

| 10y H. f1A1OLD fOW ELLA
The cooperative organization dill
fers fundamentally from the capita
stock corporation conducted for profit
A capital stock corporation for prof
is organized to return an earning anc
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
cation, 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. IL they occur. are re,
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
ate; products cannot co-onerate;
only men can cooperate. VIII n the
degree of cooperation of a member
is measured by the capital or the vol
ume of 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 a
voluntary unincorporated association
OF individuals; or as an Incorporated
capital stock association to handle
farm crops for profit or for other pur-
poses, or as nonproflt 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
It is believed that its use
ls applied to business organizations
n agriculture should be restricted to
associations, societies,
Exchanges. or agencies which are
ormed exclusively for the benefit of
he members; whose voting power is
'ased on equality of membership:
whose membership 10 confined exclu. |
lively to active producers, the mem
ership ceasing to exist when the pro-
ucer withdraws from the organize
lon, and whose earnings are distrib-
ted by each member, after a fair
ate of interest is paid for the use of
apital actually employed in the bust
ess, II any, and other overhead
harges are deducted. A cooperative
therefore, is not q cor
grafton in which the capital is con-
'ibuted primarily in order that II may
arm q profit; nor one composed of
roducers and nonpfoducers; nor one
which the producers product Is
andled by corporation for the bene-
OF the stockholders rather than for
lat of the members; nor one in
hich the membership is not under
,e control of the organization; nor
ne In which the membership do not
ctually control the organization. It
an association Of farmers who unite
an effort to handle their common
lterests through an agency which is
ontrolled by them, on the principle
an Industrial democracy. and ex.
lusively for their benefit
A cooperative association may be
lcorporated as a capital stock cor.
'ration or as a nonprofit corpora
on without capital stock. II formed
capital stock corporation It may
III be legally cooperative II the laws
lder which 1t is formed permit the
embers to manage it's affairs along ,
Operative lines, or II the statute
Divides the method Of voting, the
ethod OF transferring stock, the
nitation of membership and the dis
button Of earnings according to CO.
erative principles. There has been
tie effort by the states to enact
We that will permit the organiza-
IN OF purely cooperative associs,
ms OF farmers. 1t is therefore i'm
ssioie In most states for an asso-
alton to be formed that can operate
curely along cooperative principles.
ough as matter Of fact many asso-
atoms 30 formed do, by the consent Of a
Q stockholders. actually operate CO. S
eratively.