172 COOPERATION 



society works in harmony with the various voluntary and govern- 

 mental agencies which are seeking to promote true cooperation 

 in American agriculture. These meetings were interrupted by the 

 World War. The work of the N. A. O. S. was likewise suspended. 

 It remains to be proved whether such an institution will take 

 root on American soil. 



Essentials in Cooperation. Some of the chief factors in success- 

 ful cooperation are the following: 



A manager who is honest, efficient, and well paid. 



Ample working capital and sound financial reserves and strict 

 auditing. 



A specialized field of operation. 



A large volume of business. 



Strong, centralized control. 



Pooling arrangements (in most selling associations) whereby 

 an occasional loss is distributed. 



A wider and better distribution of the produce sold. 



The goal, always in mind, is to improve the quality of the 

 product marketed, to standardize the pack, advertise and main- 

 tain the label or brand, and to introduce economies and savings, 

 so that both consumers and producers are the beneficiaries. 



Farmers organized in a cooperative association according to 

 the above principles are mobilized for their own protection. They 

 can conduct collective bargaining where they control the supply 

 of the product, and thus have a voice in price-making. 



QUESTIONS ON THE TEXT 



1. Give two definitions of cooperation. 



2. Illustrate by several concrete examples the broader use of the term. 



3. Distinguish between stock and non-stock corporations. 



4. Give the test of a real cooperative corporation. 



5. State the usual tests applied to cooperative corporations. Give reasons 



for not applying these tests strictly. 



6. Show abuse of the name "cooperative." 



7. What is the purpose of cooperation? 



8. Show how public policy is involved here. 



9. Show how both producer and consumer may be beneficiaries of cooperation 



among producers. 



10. Describe the cooperative association in the strawberry district of Kentucky. 



11. Show where cooperative corporations have failed, and why. 



12. What is the status of cooperative packing houses? 



13. What was the Northwest Trading Company? 



14. Describe at length the United Grain Growers. 



15. Speak of the extent of the success of cooperation. Compare with success 



in Europe. 



16. Comment on cooperation in these fields: production; selling; buying; 



insurance; telephones; credit. What principles are illustrated by the 

 Eastern Shore of Virginia Produce Exchange? 



