FORM OF ORGANIZATION 21 



to share in whatever amount is left after the liabilities of the 

 association have been paid, such share being in proportion to the 

 amount of business he has transacted through the association. 



Advantages. The cooperative creamery is usually suc- 

 cessful in communities where a sufficient amount of milk is pro- 

 duced and where the people understand how to work together 

 in harmony. In such communities the advantages of the 

 mutual cooperative creamery association over one owned by 

 an individual or a company are, primarily: 



1. Increased Value of Raw Product. This is due to elimina- 

 tion of dividends on capital stock and also to decreased expense 

 in securing raw material through assurance of its more definite 

 supply. Furthermore, this greater profit to members on their 

 raw product stimulates them to secure increased production 

 from their herds. 



2. Better Quality of Raw Product. The patrons of a coopera- 

 tive creamery realize more keenly the importance of better care 

 for milk and cream on their own farms, knowing that neglect 

 along such lines results in direct loss to them. In a cooperative 

 organization the producers pay closer attention to the quality 

 of goods delivered by their fellow members and the one who de- 

 livers raw products of inferior quality is liable to severe criticism. 



JOINT-STOCK COMPANY 



The joint-stock company as a creamery company is an organ- 

 ization of persons who join together for the purpose of convert- 

 ing raw materials into finished products as well as for the pur- 

 pose of marketing the same. This organization has a capital 

 stock on which dividends are declared. The joint-stock com- 

 pany proves to be most successful in certain places, mainly 

 those localities where the townpeople have come to a full realiza- 

 tion of the advantages of home industry and organization, and 

 where they exert some influence over the farming population. 

 Many such creamery companies have been organized entirely 

 by the efforts of the townspeople. They are commonly known 

 as cooperative creameries but are not strictly cooperative in 

 principle. Some of them approach cooperative methods closely 



