Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-04-25

to the wall or else placed in an en-
barrassed position. Some coopera-
tives in Maine went out Of business
during this period. The proportion,
however. compares favorably with
the total number of failures of all
manufacturing and commercial en-
terprises in the State during the
same period.
During 1921 there were 1876 fail
ures in Maine, involving liabilities
of $2,S37, 293. The following year
(1922) there were 206 failures with
liabilities amounting to 1897 ,66S.
Since that time all business in
Maine has improved and the cooper
atives have enjoyed their share of
the prosperity. Here are few ex-
yamples: A small purchasing unit do
ing an annual business of $4,000 has
built up reserve fund of over
$4,000. Another unit with an an
nual business in 1922 of $4,000 has
increased their volume over $4,000
and has added better than $4,000 to
their surplus. These are some of
the average units.
"Some of those who do a larger
business and were consequently hard
hit in the time of the break in
prices, are making comparable
gains. One of these doing practical
ly 100000 annually has made a net
gain of 5000 the last year. Similar
instances may be multiplied, and
all go to show that the principle
of cooperative effort is sound.
1.-THE reason that cooperation does
not always succeed is not hard to
find for those who have the oppor-
tunity to attend the directors meet
ings Of various cooperative organiza-
tions. The difference between sue
cess and failure is easily read in the
attitude which the directors take
toward the everyday conduct of the
business.
ut is not lard to tell the ultimate
outcome when the directors begin
to tell of cutting prices regularly
whether or not the cut means that
the prices charged will be so that
there is not enough profit left to
care for the ordinary expenses OF
! handling the goods from the car
through the store, and to the mem
| bers; or If action is taken to hire q
| cheaper man for manager regard
less of his business ability. Often
| this has been done and the firsl
Iyear's business under the cheaI
management has shown a deficit, as
compared with profit the proceed.
| ing year under the higher priced
manager. Then you may find the
| same sort of directors declare out
! the last dollar of surplus in the
| form of dividends. entirely unmind.
| full of'the fact that all business has
its cycles of prosperous periods anC
periods of depression.
| 1T is the wise board of director:
I which recognizes these periods ant
during the time when extra profit:
! are made. lays aside liberal amount.
for reserve and working capital, ant
| sees the necessity of paying a rea.
sonable salary for the manager
with business ability and integrity
Not least of the qualifications of 6
| cooperative manager is his ability
| to mix with the members. keeI
| them fully informed of how the bust.
ness is conducted and be able tc
| maintain the confidence of the ole
| members and constantly acquire new
members with this same feeling Of
| confidence.
Yes, the Farmers Unions an6
| other cooperative organizations Of
| the State are on the upgrade, anG
! it is because the farmers as a cias.
are acquiring better methods of do.
! ing business"