PURPOSE OF COOPERATION 161 



in the form of stock dividends, patronage dividends, or other 

 form) accrue to those who own the capital stock, and not also to 

 those who furnish the business, then the concern is not coopera- 

 tive, and if these benefits do go to those who produce the 

 business, then the business is cooperative, whether the other 

 " essentials," so called, are adhered to or not. The three best 

 examples of large and successful cooperation in agriculture in 

 North America are the United Grain Growers of Winnipeg, 

 the California Fruit Growers Exchange of Los Angeles, and 

 the Eastern Shore of Virginia Produce Exchange of Onley, 

 Virginia. None of these adheres strictly to the three " rules" of 

 cooperation named above. 



A large number of farmers' corporations which call themselves 

 cooperative have none of the elements of cooperation about them, 

 and hence are not entitled to that name. And many corporations 

 which begin as true cooperatives permit all their stock to drift 

 into the hands of two or three individuals. Such an institution 

 is not likely to remain long as a truly cooperative organization, 

 whatever the name it may bear. 



Purpose of Cooperation. Cooperation, it must be emphasized, 

 is for savings, not for profits. " Capitalistic " corporations, so 

 called, are organized for profits, and for profits only. But coopera- 

 tive corporations are organized to perform a service for their mem- 

 bers, and this service usually takes the form of economic savings. 

 It is not therefore in accord with the spirit of true cooperation 

 to organize for the purpose of making profits from non-members. 

 Since we now have 30,000,000 persons on farms and 70,000,000 

 persons not living on farms, it is evident that the consumer must 

 be reckoned with in forming any cooperative " combine." Other- 

 wise the courts will hold such a combine to be contrary to public 

 policy. In brief, cooperation in agriculture aims to eliminate 

 wastes, introduce improvements, and hence realize savings in the 

 various processes of production, marketing, buying, insurance, 

 credit, etc. Increased profits have not been taken out of the con- 

 sumer. The consumer is, rather, a beneficiary. Yet savings have 

 accrued to the farmer. Mention has already been made in this 

 work of the California Orange Growers, and how, by organizing 

 the California Fruit Growers Exchange and advertising the "Sun- 

 kist" brand of citrus fruits, they have been enabled to furnish the 

 consumer a bigger, better, and cheaper orange, with increased 

 profits to themselves. But these profits have accrued through 

 savings effected and wastes eliminated. 

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