Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1929-05-30
Cooperative Plan
Endangered ByFarn
Relief Experts Say


bert. general manager OF the Yak
ina Fruit Growers association. In
discussing this subject of the Big
Y Bulletin. Mr.. Hebert said:
I'm these days when cooperative
marketing Is being laid down as
the fundamental basis on which
farm relief Is predicated by con-
gress and all those who have this
matter in hand, from President
Hoover down, it behooves the ex-
listing successful cooperative asso-
Citations to stop, Look and Listen
before endorsing the type Of legis-
lation which Is being proposed.
Wholesale credits to c~ooperatives
which may be formed under the
stimulus Of government aid and
with the mistaken ide6 that by
some peculiar leRerdemain sur
pluses will be absorbed without de-
pressing markets. may or may not
be a good thing for existing CO.
operatives which have by hard ex-
perience finally established them
selves firmly In the commercial
activities of their respective indus
tries.
Are we 10 have a mushroom
crop OF hot-house ccoperatives.
most of which must eventually fail.
Is a question we may well ask our
selves. If so. Is X a good thing for
the advancement OF the co-opera-
tive movement? Or does 1t hold a
grave danger Of setting back this
great economic agricultural de-
velopment which is slowly but sure
Nv winning its way? To discredit
the cooperative form Of ~organiza-
ton in the eyes OF the business
world by numerous failures would
be a serious thing: to discredit IL
in the eyes of the producers would
be fatal.
Even now with the government
departments lending their influence
to furthering the cause Of coopera-
tives. with state and national legis-
lation and the courts favoring and
fostering the movement, with the
United States Chamber of Com
merce and industrial and educa-
tional leaders throughout the
country endorsing the plan OF col
lective marketing for agriculture.
We still have a great part OF the
public rho look upon cooperative
marketing as somethink akin to
socialism or at best. something
which isn't just right.
Where do they get this idea?
Probably from the wide publicity
which is given to every mistake or
failure which occurs in the coopera-
tive field. and probably because the
private corporation is accepted v
eryWhere and glorified as the one
way Of doing business successfully
or both The cooperative. being a
semi-public institution. l. constant
~ placed In the limelight BY the
daily press-usually In an unfavor-
able light. III the publisher Is
schooled in the old order Of things,
as Is most likely.
THE public and the daily press
lightly overlook the fact that g5
per cent of private enterprises fail
within a short time. although they
have more than a century of ex-
perience in corporation methods 10
profit by. and the average corpora
ton only attains a dividend paving
basis after seven years Of opera
ton.
While public opinion Is an i'm
portant factor and ii takes courage
and a fighting spirit at times for
the struggling cooperative to carry
o. in the face Of IL. the respect
Of the grower for his cooperative
Is even more essential TO its sue
cess. Without the high regard OF
the producer for his cooperative
organization or his respect for this
method of marketing. no coopera-
tive can succeed or probably even
be organized in an antagonistic or
indifferent community. And no CO.
operative can rise higher than the
common level Of the respect OF It's
membership.
Congress can Iegislate a thou
sand co-operatives into temporary
existence. which l. just the begin
ming. but Ii cannot make them sue
coed even with the wealth Of the
United States government behind
them. Too much credit Is as often
destructive to economic endeavor as
too little. Experience and a trained
personnel and the adoption Of
sound business principles which
have proven thsir worth In private
business are a. essential in co.
operative marketing as in corpora
ton systems of trading for a pro-
fit on dollars invested in capital
stock.
The existing successful co-opera-
tive organizations which have be-
come strong only ms "a result Of
long years Of experience and pains
taking work and after many trials
and tribulatons. have cause to
watch the trend or farm relief
legislation now pending with no lit
tie concern. lest we have another
surplus In this case Of coopera-
tives so-calIed whose uncertain
tenure OF life may prove a menace
to the great economic agricultural
movement of which they are the
pioneers.
THE government virtually washes
its hands of all responsibility and
passes the buck to the cooperative
association by giving them $780,
100000 with which to stabilize the
industry. If they fail. as probably
they will. for the provisions Of the
law 90 against established economic
laws. the c~oonerative movement
viii bear the odium or that failure.
They will fail because the gov
eminent has laid down in the law
provisions which in fact say that
fhe coverument funds shall he