The Ocala evening star., 1922-10-20
HERBERT HOOVER ON
COOPERATIVE MARKETING

The following from the Country
Gentleman gives the views of Herbert
Hoover, secretary Of commerce, on
cooperative marketing. and why it
should receive universal support:
"Co-operative marketing associa-
tions should receive the encourage
ment Of governmental agencies be-
cause they make for economic distri-
button and for stability in markets
and marketing. They bring about an
improvement in the quality of the pro-
duct handled comparatively; they save
waste: and by increasing his income,
they raise the standard of living of
the co-operator who is a member of
the organization. Unless a co-opera-
tive can accomplish these things, there
is no proper field for that particular
cooperative.
''The notion has been advanced that
these organizations are of socialistic
type. This is rank nonsense. They
are the exact antithesis of socialism.
No man is member of cooperative
marketing association except to get
more for what he sells or to pay less
for what he buys. This is individual
ism.
"In cooperative marketing organi-
cations the profits or benefits derived
from joint action by the producers
are distributed to them in proportion
to the business done for each producer
by the association and in accordance
with the quality of his product. In this
essential way they differ from joint
stock corporations, which divide the
profits or benefits upon the basis of
the capital stock subscribed.
"They should receive the support of
bankers and fnanciers because CO.
operative marketing associations are
purely business institutions and, as
such, deserve the same consideration
as any other business organizations.
Business men should encourage
cooperative marketing among pro-
ducers for the same reason that they
should support any method for the ad-
vancement of the business and eco
nomic life of the country-because it
is good business.
"Co-operatives have no right to ask
anything but the right to do business
as business organizations and along
strict business lines. The biggest
problem of the cooperative marketing
association is to secure cohesion iii
direction where so many partners are
i1volved, to develop skill in admins
tration, and to secure men of proper
training and ability to fill their ex-
ecutive positions, or to train them
themselves. I have no doubt that the
ordinary corporations, when they first
began to be organized in large num-
bers. had the same problem of develop
ing expert personnel who knew how,
OF could learn how. to operate eff
GENTLY on this new basis of organiza-
ton.
"Under proper form of organiza-
ton, with a sufficient volume of busi-
ness. under conditions where there is
an economic demand for Improvement
in the marketing system, and with
proper administration. there is no
reason for failure of a cooperative
marketing organization-much less
reason, in fact. for the possibility of
failure under these conditions than
for the failure of ordinary forms Of
business. A cooperative has this ad-
vantage over ordinary distributing
agencies-that is, its clientele is more
fixed to it by personal interest.
"Personally, l think the principles
of cooperative marketing of farm
prdoucts. so far as consistent, should
be applied to some other types of pro-