Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1917-01-26
COOPERATIVE STORES
(By j. A. Bexell, Dean of School
of Commerce, o. A. c.


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 generally followed in such
undertakings in this country This
conclusion has been reached as a re-
suit of a survey of 60 cooperative
stores made by the office of Markets
and Rural Organization of the De-
partment, the findings of which are
published in Bulletin 394. In the
many American cooperative stores
which have failed, ismanagcment,
inadequate accounting and auditing,
lack of cooperation, poor business
methods, and lack of judgment are
responsible.
The result of the survey indicated
that the cooperative store has tend
ed to bring about lower prices, small
or margins of profit, more efficient
business methods and other practices
beneficial to the farmer Higher fig
ures are quoted frequently for pro-
duce sold by farmers, in communi-
ties in which cooperative stores eX-
list, because of the 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 a success. Instances
are cited of unusual savings and
dividends to members of various as
sociations. Such associations pro-
cure capable managers, it is pointed
out, by paying adequate salaries;
take advantage OF large-scale pur-
chasing and cash DISCOUNTS; main
tain proper accounts and cost rec
ords; and watch stock tournovers
The cooperative store in general, it
is pointed out, has very great posi-
bilities 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 indicat-
ed should be present if a cooperative
store is to be successful are: %
Good leadership among the members
| and prospective members; CD ca
pable manageme nt; 90 favorable
environment, with regard both to
physical location and to social and
occupational affiliations, and ca
adequate legal safeguards. The lead
ership should not be confined to one
individual, the severing of whose con-
nection with the enterprise might
prove disastrous, but should consist
in an efficient organization in which
SAOup VI lCddClo lanes part. OHIS
man of good general business abil-
| ity should be placed in active man
agement of the store. The securing
of such a man will involve the pay
ment of higher salary to the man
ager than the enterprises reporting
of $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 specialists
to consider carefully all these factors
before taking definite steps.