Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1916-12-15
GOVERNMENT TELLS
OF COOP. STORES
REASONS FOR FAILURE TOLD BY
UNCLE SAM, AFTER NATION
WIDE INVESTIGATION,

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
principles Of such enterprises to hold
good in America, but to the business
methods generally followed in such
undertakings in this country, says
the Weekly News Letter of the
United States department of agricul-
ture.
This conclusion, it goes on to say,
has been reached as a result Of q
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, inadequate account
ing and auditing, lack of cooperation.
poor business methods, and lack of
judgment are responsible.
Make Prices Lower.
The results of the survey indicated
that the cooperative store has tended
to bring about lower prices, smaller
margins of profit, more efficient bust
mess methods, and other practices
beneficial to the farmer, the News
Letter says. Higher figures are
quoted frequently for produce sold
by farmers in communities in which
cooperative stores exist, because of a
stimulation of the local market.
With the application of efficient
business methods and the education
of the farmer to a clear understand
ing of the functions of cooperative
stores, say the authors of the bulle-
tin, American cooperative stores may
be made successful. Instances are
cited of unusual savings and large
dividends to members of various as
sociations.
Such associations procure capable
managers, 1t is pointed out, by paying
ad. quate salaries; take advantage Of
large-scale purchasing and cash dis
counts; maintain proper accounts
and cost records; and watch stock
turnovers. The cooperative store in
general, it is pointed out, has very
great possibilities in this country If
the farmer can be made to under
stand this necessary relation Of eff
cheney to financial success.
The more general, underlying con-
ditions which Investigations indi-
Gated should be present II a cooper
alive store is to be successful are:
% Good leadership among the men,
bers and prospective members, CO.
capable management. 60 favorable
with regard both to
physical location and to social or oc-
cupational affiliations, and a. ade-
quate legal safeguards.
Group OF Leaders.
The leadership should not be con-
fined to one individual, the severing
Of whose connection with the enter
prise might prove disastrous, but
should consist in an efficient organi-
cation in which q 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 a man will in
volve the payment Of higher salary
than is paid by most of the stores in
vestigated. The average salary of
the manager for the enterprises re-
porting was $106 month.
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-
leges and creating special safeguards
for cooperative associations now
exist 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 stems.