Dec. 2, 1920.] Agricultural Gazette of N.S.W, 843 



Some Fundamental Principles of 

 Co-operation. 



C. C. CRANE, B.A., Organising Inspector of the Agricultural Bureau. 



Although co-operative ventures vary greatly in detail and organisation, 

 practically all have been raised on a foundation of co-operative principles 

 that are generally accepted. Many of the unsuccessful co-operative under- 

 takings can trace the root of failure to some departure from co-operative 

 principles. The principles may be briefly enunciated in a few paragraphs. 



Co-operative organisation can only be successfully undertaken when the 

 conditions it is designed to remedy are such that the need for improvement 

 is clearly evident to all whom the conditions affect. In short, n&cessity must 

 he the mother of co-operation. 



When prices are demonstrably too high so far as consumers are concerned, 

 when undue profits can be definitely pointed out, when producers' receipts 

 fall below actual cost of production, when existin.g methods are costly and 

 harmful to the prosperity of an industry, then perhaps co-operators may 

 hope to organise with definite objectives and good probabilities of success. 



Every single step in the organisation must be formal and regular. Each 

 step must stand the test of practical application, and must be able to show 

 (a) striking improvements from the time of its practical adoption, and (&) 

 good prospects for further improvement as it develops. The time must be 

 ripe and results must be speedily apparent; otherwise the organisation 

 will die from inertia and succumb to the attacks of competitors. 



There must be sufficient visible support to ensure at least the minimum 

 amount of business, below which the venture cannot be economically con- 

 ducted. There must be a sufficient volume of business to reduce the over- 

 head costs and charges to a minimum, so that the venture can work more 

 economically and efficiently than the organisation it was designed to dis- 

 place. 



The loyalty of individual members and mutual confidence in each other 

 are of paramount importance. It is perhaps the most outstanding feature 

 necessary to success. Every member must be made to feel his importance 

 as a cog in the machinery, and steps must be taken to maintain his interest 

 and keep him in touch with the whole detail and scope of the undertaking. 

 He must realise (a) the necessity for the movement; (b) the improvements 

 already effected; (c) the improvements likely to accrue; and {d) the pro- 

 bable results of abandoning the venture. In many successful co-operative 

 ventures, binding agreements have been found necessary to guarantee abso- 

 lutely the loyalty of individual members as though it were the life blood of 

 the movement. 



