924 SUCCESSFUL FARMING 



as against 46 cents the rate of stock companies soliciting business in com- 

 petition on three-year contracts. 



Even among the conservative people of Lancaster County, Pa., there 

 is a co-operative association which has been in existence for over eight 

 years, having a membership of over a thousand, and doing an annual 

 business of nearly $200,000. Enough has been stated to indicate that 

 co-operation is growing rapidly and that it is successful. 



Importance of Able Management. — Success in co-operation depends 

 much upon the manager. It is necessary to leave a great deal of the 

 business to the manager, and for this reason a man should have wide 

 experience, ability and be of unquestioned integrity. Such a man is sure 

 to be worth a good salary. Those trying to co-operate who underestimate 

 the value of good management are likely to fail. 



Supervision of Co-operation. — Several of the states have already 

 passed laws regulating certain features of co-operation. Such a law 

 passed a few years ago by New York, provides that five or more persons 

 may become a co-operative corporation, company, association, exchange, 

 society or union for the purpose of conducting a general producing, manu- 

 facturing and merchandising business on a co-operative plan. It limits 

 the aggregate value of shares held by one person to not more than $5,000. 

 Each stockholder is entitled to only one vote, regardless of the amount of 

 his stock. It provides for the apportionment of the net earnings by first 

 paying dividends at a rate not exceeding 6 per cent per annum on stock. 

 Not less than 10 per cent of the net earnings are reserved until the reserve 

 fund equals 30 per cent of the paid-up capital stock. Five per cent of 

 the earnings must be devoted to an educational fund designed especially 

 for the teaching of co-operation. The remainder of the net earnings shall 

 be distributed to members of the first class, thab is, stockholders, and 

 those of the second class, non-stockholders. Dividends are paid on pur- 

 chases and sales and in proportion to the amount purchased or sold. 



A Bureau of Supervision of Co-operation has been created. The 

 superintendent is appointed by the Commissioner of Agriculture. It is 

 his duty to aid co-operative associations throughout the state. 



REFERENCES 



"Co-operation in Agriculture." Powell. 



"Farm Management." Card. 



"Farmers' Business Hand-Book." Roberts. 



"Markets for People." Sullivan. 



"Marketing of Farm Products." Weld. 



Michigan Expt. Station Bulletin 191. "Shrinkage of Farm Products." 



Illinois Expt. Station Bulletin 124. "Shrinkage of Corn in Cribs." 



Kansas Expt. Station Bulletin 147. "Shrinkage of Corn in Cribs." 



New Jersey Extension Circular No. 5. "Marketing White Potatoes in New Jersey." 



Wisconsin Expt. Station Bulletin 209. "Prices of Farm Products." 



Canadian Dept. of Agriculture Bulletins: 



192. "Agricultural Co-operation." 



216. "Box Packing of Apples." 



