Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1920-09-07

ever the line contemplated for CO.
operative selling--are efficient ami
reasonably adequate, and if the far
mers in the community feel that they
are being served satisfactorily by
these private concerns, it is doubtful
If cooperative organization Will
succeed. But if the existing private
agencies are inadequate and il the
formers can be made to see the saw
ing that will result to all concerned
if they unite heartily in an associa-
ton, then there is a good chance Of
winning. But the cooperative prin-
ciple must be adhered to. Members
of an organization supposed to be co
operative can not be expected to hay !,
vital interest in project which il
really operated for the profit of an !
controlled by a few individuals.
Many persons do not have a clearly
defined idea of what a cooperative
organization is. The term "cOopera-
tive" is often used rather loosely.
Where concern is operated for the
profit of the persons investing capital
in it, and seeking dividends on its
capital, the undertaking is non-coor
erative. On the other hand, in Il
cooperative marketing or selling
organization, each member usually
has one vote Tin a noncooperativo
concern the votes are in accord with
the money invested) so that one or a
few members will not control its
operations. 1t is conducted to render
service and effect savings for the
members and not to earn profits for
distribution as dividends on the
money invested. To be sure, fan
rate of interest is granted to capital
invested by the members and the bal.
ance of any surplus to be distributed
is divided in accordance with pat
ronage; that Is, the amOut Of bust
ness transacted with the organization
Contracts between the members
and the organization whereby the!
agree to market certain product.
through it are vitality important il
many instances, especially in the cast
of associations handling perishab!'
products. The Michigan Potato Grow
ers' Exchange, the California Frui
Growers Exchange, and many othe
successful organizations follow thi
plan.
through the organization is also al
important feature. BY pooling i
meant averaging the returns receives
for products sold during certain per
iod, or for certain shipments. so tina
each shipper having products of tn
same grade will receive the sam
price. Failure to adopt the pool!nl
principle may result in injustice T.
some of the members, as experience
has proved more than once. Condi
tions and practices in grain market
ing make the outright purchase O
members products feasible but thi
does not usually apply to organiza
lions handling other commodities.
Farmers cooperative marketin
associations ere formed with capita
stock or formed on the nonstock plan
Both forms have favorable feature
which the Bureau of Markets will b
glad to explain to any intereste
person. Another matter to whicl
careful attention should be given |
the proper financing of cooperativ
4 project. The bylaws of the associa
ton should be painstakingly draw
and should be thoroughly discussed
by the membership so that Their,
I will be no misunderstanding later
The question of Incorporation will
also have to be decided. While incor
poration is not necessary, in mos
cases it is considered advisable. I'm
fortunately the State laws for bodies
of the character here discussed arr
far from uniform, some of them max
ing no provision for cooperative asso
Citations.
) The above paragraphs serve only t
suggest some of the principle prob
lens that have to be considered II
forming cooperative enterprise
Persons wishing, to investigate thi
matter further will find 1t profitable
to communicate with the U. s. De
partment of Agriculture. which will
supply them with literature contain
ing full discussion Of these ant
related questions.