64 Cooperation in Agriculture 



of commercial weight so sold, marketed, or consigned, as liqui- 

 dated damages, as provided in the foregoing By-laws, which are 

 hereby made a part of this contract. 



THE FEDERATION OF COOPERATIVE ASSOCIATIONS 



The business of a cooperative association can be carried 

 on more economically and effectively when a number of 

 them federate into a cooperative union which represents 

 them in handling the problems that are common to them 

 all. From the business standpoint, the advantage that 

 the capitalist derives from the centralization of large 

 amounts of capital into corporations can be obtained by 

 the producer by the federation of cooperative associations 

 in a central democratic organization. The federation 

 can develop a comprehensive marketing system ; it can 

 reduce the cost of production, of preparing the products 

 for shipment, and the distribution and sale of the products. 

 Such a cooperative union should be democratic in prin- 

 ciple and not autocratic. It should represent centralized 

 cooperation. It handles the questions that affect the 

 local associations as their representative or agent, and it 

 can perform this function more economically and effi- 

 ciently because the expense of comprehensive manage- 

 ment is prohibitive in a small association. Like the large 

 corporation, a central cooperative union representing a 

 number of associations has a larger influence than a small 

 group of farmers working alone in dealing with trans- 

 portation, legislative, and other public policy questions, 

 in the purchase of supplies, the distribution and sale of 

 products, in the development of markets, and in prevent- 



