Arizona republican., 1922-03-05

] power OF the members is equal or
proportional to the amount Of busi-
ness transacted for each member
through the association. The dis
tribution OF its earnings is based upon
the amount OF the business trans
acted for each member.
1t is a fundamental principle that a
Isuccessful industrial Organization
among farmers must be founded on a
special industry, such as cotton, to-
bacco. milk, poultry, small fruits,
peaches, apples or citrus fruits.
Farmers who produce general farm
crops for which there Is a steady
demand and a ready market do not
always have a common motive for
holding together, especially If they
are fairly prosperous. II they can
sell they produce without difficulty.
or do not have to develop special
markets or marketing system-they
may be satisfied with conditions as
they are.
On the other hand. the special In
dustries like those mentioned have TO
meet special problems of production,
of crop handling, and Of marketing.
In a. special industry the risk is
greater, the stake is larger, the at
traction is for men with more than
the average resourcefulness and inl-
tiative. These men have common
purpose and they are naturally better
fitted to meet it.
What 10 Necessary
I. The unit must lie in a restrict
ed area. 1t is fundamental that the
unit OF each agricultural Industrial
organization formed to distribute
farm crops or for other business pur-
poses must lie in a comparatively
small area. The members must be
we'll acquainted with each other, their
aims must be similar, and they must
grow products Of similar quality and
/ character IL they are to succeed when
associated with one another. 1t is
equally important that the member
ship must be stable one and that
the farm lands are not frequently
changing hands. a condition which
often operates against the success OF
the cooperative movement in the
newer sections Of the country. II is
desirable from each point of view
that each rural community and each
individual should retain its indlVid-
uality to the greatest possible extent,
that IL should not have local pr1de
and ambition stifled by too general
kmixture with other sections ana that
| il should be encouraged to build up
a local reputation for its products
that distinguishes il from other COM
munities.
Later. as matter OF economy and
business efficiency, these different
associations may join into district as
sociations, which in their turn fed
crate and organize a central body 70
act as an agent in marketing the
| products of each association or to
! furnish the facilities for marketing
and to handle those problems tnat are
common to all alike. But each asso-
citation should preserve its local char
acter by selling its products under a
brand that is the exclusive property
of that association, thereby holding
and developing the local pride and
reputation of that section.
2. Agricultural organization must
| be born of necessity. A farmers
business association cannot be formed
without competing with agencies al
ready established II 1t Is serious
| business undertaking, the forces OF
| competition will be directed toward
| crushing il; II will be viciously at
| tackled by its competitors; and II is
likely to fail at the start in the face
of the fire which it will have to meet
unless it Is founded on the Bedrock
1 OF necessity.
4 D.
| tions.-There are two systems under
| which q farmers business co-opera-
| tive association may be formed. II
may be incorporated as a non-profit
1 corporation: or II may be formed as a
| corporation for pecuniary profit with
| limitation placed upon the rights Of
| the stockholders, and the methods OF
| distributing the surplus earnings.
4 Limited Interest
| II the association is formed as q
| corporation for pecuniary profit, the
| capital stock should receive but q
| limited rate OF interest, usually not
/ more than the customary interest
| rate; each stockholder should gen.
| orally have only one vote or the votes
| may be proportional to the amount
l of products contributed By each
/ member; no one stockholder should
hold more than a small percentage
| OF the stock without the consent OF
the corporation: and the net proceeds
| OF the sales OF the products should be
distributed pro rata on the products
contributed.
If formed as a cooperation without
pecuniary profit each member usually
| has one vote or the voting power may
| be proportional to the product con-
| tributed, the customary interest may
| be paid on the capital invested in the
corporation and, after operating ex-
| penses, reserve fund sufficiently
/ large to meet debts and losses. and a
| fund covering depreciation are set
! aside, the surplus is then distributed
In proportion to the amount OF busi-
ness transacted through the organi-
zation. In the non-profit corporation
4 or in the corporation for profit, the
stock or the membership should not
be transferable except under rules
| legally defined by the corporation.
| 4. The membership in a farmers
| association.--It has been the exper-
fence of the successful farmers bus
| mess association that it's policy and
| management, the voting power. and
| the direction of its business opera
| tions must rest exclusively in the
| hands of the prod ecers, otherwise the
corporation is likely to pass into the
| control of those whose interest Hes
in the dividends on the capital stock.
| rather than in a desire to improve the
| farmers condition by the distribution
l and sales of crops or the purchase OF
the supplies along cooperative lines.
Evidence Of Membership
| Membership In a non stock organi-
| cation should be evidenced by cer-
| tificate OF membership; in a stock
corporation, by a stock certificate.
5. The voting power of members
AS a general principle. the most de-
sirable form of organization is the
industrial democracy in which each
member has an equal voice IN the
mana cement and shares proportion
ally in the benefits and risks with
every other member. The "one man,
one vote" principle OF organization is
best suited when the interest Of each
member in the association is approx
Il JACK SYLVIA |