Pine Bluff daily graphic. (Pine Bluff, Ark.) 1893-1942, 1916-12-03
COOPERATIVE Stores
BENEFIT communities
Federal Office of Markets Finds Prin.
ciple Right, but Business Methods
Poor.

While cooperative stores in the
United States are relatively unsuc-
cessful as compared with typical CO.
operative stores in European coun-
tries, the lack of success is not due to
the. failure of the underlying prin-
ciples of such enterprises to hold good
in Aemrica, but to the business meth
DDS generally followed in such I'M
dertakings in this country. This con-
clusion has been reached as a result
of survey of 60 cooperative stores
made by the office of markets and
rural organization of the department,
the findings of which are published in
Bulletin 1874. In the many American
cooperative stores which have failed,
mismanagement,i nadquate accounting
and auditing, lack Of cooperation.
poor business methods, and lack of
Judgment are responsible.
The results Of the survey indicated
that the cooperative store has tended
to bring about lower prices, smaller
margins of profit, more efficient bust
ness methods, and other practices
beneficial to the farmer. Higher fig
ures are quoted frequently for pro-
duce sold by farmers, in communities
in which cooperative stores exist. be-
cause of a stimulation of the local
market.
With the application of efficient
business methods and the education of
of the farmer to a clear understand
ing of the functions of cooperative
stores, say the authors of the bulletin,
American cooperative stores may be
made successful. Instances are cited
of unusual savings and large divi-
dends to members of various associa-
tons. Such association procure cap
able managers, it is pointed out, by
paying adequate salaries; take adj
vantage of large scale purchasing and
cash discounts; maintain proper ac-
counts and cost records; and watch
stock turnovers. The cooperative
store in general, it is pointed out, has
very great possibilities in this coun-
try if the farmer can be made to un-
derstand this necessary relation of
efficiency to financial success
The more general. underlying con-
ditions which Investigations indicated
should be present if a cooperative
store is to be successful are: (1) Good
leadership among the members and
prospective members, (2) capable
management, (3) favorable environ
ment, with regard both to physical To-
cation and to social or occupational
affiliations, and az adequate legal
safeguards. The leadership should
not be confined to one individual, the
severing of whose connection with the
enterprise might prove disastrous, but
should consist in an efficient organi-
zation in which group of leaders
takes part. Only man of good gen.
eral business ability should be placed
in active management of the store.
The securing of such man will in
volve the payment of a higher salary
than is paid by most of the stores in
vestigated. The average salary of the
manager for the enterprise reporting
was $106 a month.
In some of the most successful CO.
operative stores investigated the COM
mon employment of many of the resi-
dents of the community or their COM
mon membership in social, fraternal,
or religious associations was an i'm
portant factor making for success.
Laws granting special privileges and
creating special safeguards for CO.
operative associations now exist in 80
states. Persons contemplating the or
ganization of cooperative stores are
urged by the departments special
lists to consider carefully all these
factors before taking definite steps.