200 



an historical fact that a large proportion of the troubles and 

 failures in the cooperative movement have been clue to the 

 irresponsibility of the membership v^dienever an association has 

 been subjected to fire; and no one not experienced in the move- 

 ment can have any conception of the degree to which misrepre- 

 sentation, insinuation and other modes of creating disaffection 

 are persistently kept before the coiiperative producers by those 

 who make an abnormal profit when the farmer's product is 

 handled individually. The same kind of misrepresentation is 

 used in building up one association as against another when those 

 wdio handle the business of a cooperative association are inter- 

 ested in profits, or derive their compensation from the volume of 

 business handled. 



THE MANAGEMENT OF A COOPERATIVE ASSOCIATION. 



The success of a cooperative organization depends primarily 

 on the loyalty^nd stability of the membership ; it depends further 

 on efficiency in management. Efficiency in management cannot 

 exist without stability of membership ; nor can it be developed 

 unless the members appreciate the necessity of providing an effi- 

 cient management. The difficulty in most cooperative organiza- 

 tions is the lack of appreciation of the need of a high order of 

 organizing and business ability on the part of the employees of 

 the association. The common failure of cooperative associations 

 is usually attributed to inefficient management ; as a matter of 

 fact, it is due to the membership itself, which has fallen short in 

 securing skillful employees. The individual producer is likely 

 to gauge the requirements of management by the size of his own 

 business. He falls short in his estimate when he acts on a board 

 of directors and is charged with the responsibility of providing 

 a management to handle successfully a collective business. In- 

 efficient management is a measure of the degree of business effi- 

 ciency of those who are charged with the direction of the affairs 

 of the associaton ; and unless the membership will sustain a board 

 of directors in em]:)loying men of a high order of ability a co(>i)ora- 

 tive as.sociaton is short lived. 



The management of a coiiperative organization is more difficult 

 than that of an ordinary cor])(jralion. The stockholders, not be- 

 ing experts in the affairs of the latter, do not often take an active 

 interest in its details. The ])roducer, on the other hand, is vitally 

 interested in his own business and he is likely to take an active 

 part, at least in giving advice concerning the conduct of the busi- 

 ness. This is one of the most valuable assets in a coo])erati\e 

 organization if the manager is l)ig enough to utilize it. Through 

 the knowledge of the i)roducer in the affairs of his association his 

 interest and sympathy can be kept vital. If the management be- 

 comes autocratic, the interest of the member dies; if it is not big 

 enough to work out a broad. ])rogre'^sive business i)olicy, using 



