The Coconino sun., 1924-08-01

necessity of organized society of gov
ernment was proven with one body or
individuals to direct and represent the
whole people.
Those so-called cooperative govern
ments failed. Emperors, kings and
czars have passed because the basic
principles Of justice to the individual
citizen were not recognized, and one
group of citizens was allowed to
prosper at the expense of the masses.
The cooperative movement has
reached its greatest development in
the republican form of government.
These associations or directors elected
by the people establish laws and reg
ulations to direct the relations of
members and methods of protection to
life and property. The success of the
governmental cooperative movement
depends on ID The personal interest
and vote Of the individual citizen.
(2) Recognition of the rights of the
individual and preventive of regula-
tions favoring any one class or group
at the expense of another group.
(3) The economical handling of
moneys and the assessment of mem
bers on fair and equitable basis.
The success of republican form of
government viii be at stake in this
country unless those directing its
policies stick religiously to the CO.
operative functions and recognize not
only the power but also the limitations
as well.
Business
The inability of the individual to
labor all day to produce an article and
then go out and exchange it for food,
led to partnerships. In turn these ex-
panded to a point where not only two
or three joined but where 90 or SO
men cooperated in large undertakings
as partners. Business found it nee
essary to link together brains and
money to produce larger results. As
the scope of business grew the part
nership was found unweildy and grad
ually dissolved. This method repre-
sented unstable cooperation.
In the middle of the 18th century
the necessity of foreign trade created
the first corporation, known as St.
Georges bank, in Italy. The corpora
tion was simply a cooperative busi-
ness organization permitting a part
nership to expand to any number of
men who could own and operate busi-
ness on a scale beyond the means of
individuals.
The corporation was governed by re-
presentation similar to established
governmental methods.
Partnership and corporation devel-
oped side by side one for small busi-
ness and the other financed large un-
dertakings.
In 1850 the United States accepted
the principals of the corporation and
since that date the corporation has
been developed to degree and SER
vice known in no other country of the
world.
The Corporation
Next to republicans government the
corporation has been the greatest CO..
operative movement of modern times.
Consideration of it's purposes and re-
suits are vital as guide to all CO.
operative development.
The corporation is "a group of
persons who act legally as one, for
gain or service" The advantages
over the partnership are:
1. Perpetual existence
2. Limited ability
8. Transferability of interests or
stock
A. Divisability of interest
5. Capitalization of management
6. Accumulation of huge sums for
development purposes.
Since 1850 the corporation has grad
ually absorbed or pushed aside the
partnership due primarily to the in
ability of a partnership with only
limited means and unstable powers to
compete with large organized cooper
ative groups.
The rapid growth of cooperative
organized business became necessary
in order to develop the natural re-
scources Of the United States. Our
great railroad systems, the key to
development, were impossible Of ac-
complishment except under the cor
poration. The iron and coal miles, the
steel industry, the copper industry,
were all made possible by groups of