The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1916-12-13
COOPERATIVE STORES
ARE HELPFUL TO ALL.
Indirectly Beneficial to Communities
Principle Right but Business
Methods Poor.

ceSsful as compared with typical CO.
operative stores in European conn
tries, the lack of success is not. due
tai the failure Of the underlying prin-
ciples Of such enterprises to hold good
in America, but to the business me-
thods generally followed In such un-
deyt&kin&s ia this country. This
contiusion has been reached as 3
Msult Of survey Of 80 cooperative
t6res made by the Office Of Markets
md Rural Organization Of the de-
pArtmspt the findings OF which are
pGblished in bulletin 3s4. IN the
many Hmerican;s cooperative. stores
which have failed missnanagement,
Inadequate accounting and auditing,
@sthods, Cd sy1S ia iasi 81 Judgment are
The results ot the survey indicat-
ed that the cooperative store has
landed to bring about lower prices,
saaller margins Of profit, more efaci
St1t business methods, and other prac-
tiees beneficial. to the farmer. High
'ar figures are quoted frequently for
'produce sold by farmers, IN COM
nlunities in which cooperative stores
edst, because Of q stimulation Of the
local market. ~ S.S5ss.s. 10 l..f
With the application OF efficient
business methods and the. education
5of the farmer TO- q clear understand
IMP 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 dtvi-
.dends TO members Of! various asao-
Citations. Such associations procure
capable managers, it is pointed out,
lby paying adequate salaries; take
advantage 0f Mrge-scale purchasing
and cash discounts; maintain proper
accounts and cost records; and watch
stock ,turnoversS The cooperative,
store Ia general, il. Is pointed out,
has very great possibilities in this
country if the farmer can be made
to understand this necessary relation
Of efficiency to financial success.
The more general, underlying con.
;ditions which Investigations indicated
mould be present If a cooperative,
store is to be successful are: ID
Good leadership among the members
and prospective members, CD capa-
BE management, (3) favorable en-
yironment, with regard both to ply
.sical location and to social or occu-
rational Affiliations, and ~ ade-
nuate legal safeguards. The leader
sllip should not be confined to one
individual, the severing OF whose
connection with the enterprise might
prove disastrous, but should consist
rs an efficient organization in which
q proup of leaders takes part. Only
= man Of good general business abll-
ity should be placed in active man
a3ement of the store. The securing
81 such q man will involve the pay
srlent Of higher salary than is paid
,by most Of the stores investigated.
The average salary Of the manager
for! the enterprises reporting was
S106 q month. :.,.=r,at.
In some of the most successful Co
operative stores investigated the
common employment of many OF the
residents of the community or their
common membership in social, fra
ternal, or religious associations was
an important factor making for sue
cess. Laws granting special privI-
eees and creating special safeguards
for cooperative associations now ex-
ist in 80 States. Persons contem-
plating the organization of coopera-
tive stores are urged by the depart
ment's specialists to consider care
fully all these factors before taking
definite steps.