Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1919-05-07
(By G. s. s~trandvold.)

Attempts have recently been made
in these columns to show the methods
and the results of cooperation in
Denmark, at saltwater, Mimi, and in.
Pontotoc county, Mississippi. and as
the subject just now is one of absorb
ing interest to the people Of the
northwest, it may be instructive to
consider some Of the conspicuous
features of cooperative activity in
Existing organizations may be d.
vided into two principal groups: CO.
operation OF consumers, and cooper
alton of producers; while the latter
aim at adding the savings to their in
come, the consumers try to deduct the
savings from the cost of supplies.
The main object of both types Of or
Eanization Is the elimination of waste.
At the present time North Dakota
is witnessing the unfolding of a
scheme which is desired to give the
impression hat it is cooperative.
The principle of cooperation is, how
ever, applied to the Consumers United
Stores company in a most peculiar
way which may be said to be unique,
for the members" get nothing in re-
turn for their investment except the
privilege" Of buying goods at cost,
plus the freight and a profit of 10 per
cent.
This enterprise whose political
character is accentuated by the fact
that members" must belong to the
N~onpartisan league. grants no other
privilege; the members" have no
shares and have no right to vote. For
this reason, the Consumers United
Stores company gan be truly said to
represent exactly the opposite of
what a cooperative Organization
really is and should be.
Outside Discussion.
This political North Dakota BUSH
ness cannot be discussed in the light
of co-operation-except as an Illus
tration by contrast. The experiment
brings into clear relief some of the
ffondly but enormously believe they
are co-owenrs Of a big business estab-
lishment, and thus it is possible to
approach the subject of reasons for
failure Of many cooperative stores.
This is a line of business which
generally is not as we'll understood by
the farmer as is, for instance, the ele-
vator business, and it has too often
been the VI that ineffective control
with the direct management of the
stores has led to the ultimate ruin of
AAS ~ = IOAAOA4Sy 6OIlCl
! ally is to give the manager or man.
ayers free reins; the development of
the business is too largely depending
on his judgment and incentive, men,
bers feeling hat they have entrusted
the operation of their store to fully
competent hands; the result often is
that the general membership neglects
to pay attention to important details,
and while it Is true that such an ar
vo A~k ry~~~~ %nn~,,,@-<I,. ,,-- -.x
to be both satisfactory and success
full, the risk taken is too great.
Another reason for failure is the
factt that members are likely to ex-
pect far greater returns than the
store is in a position to produce. In
such cases, disappointment results in
lack of personal interest-andl the
store Is left to itself.
Not Strictly Cooperative.
Finally, it is true hat a number of
cooperative establishments have not
been operated in accordance with the
fundamental theories of cooperation
They have not followed literally the
plan upon which the English and
American Rochdale stores are built
and which comprises the basic idea
that the voting power inc the 1nan-
cial interests are limited, and the
pAOAS6-OT SdS1I6S-dEO U1SLIlOuLeO
according to patronage.
In this connection it is also pointed
out-by E. M. Tousley-that the cred
it system sometimes may be destruc-
tive; on this point he says:
"One Of the greatest weaknesses in
farmers cooperative stores in the
northwest has been hat Of the credit
system. While the bylaws adopted
invariably call for the business to be
transacted upon a basis Of cash or its
equivalent, a great many Of the stores
in country towns have broken the
rule"
Starkweather to Try.
Last week it was announced that a
cooperative store is about to be start
ed at Starkweather, N. D., where an
expert has been invited to make the
necessary preparations. 1t Is express