THE rRINCIPLP:S OF COOPERATION. 207 



is subject to the same law as private trading, and it is 

 important tliat the members of cooperative societies shall 

 have at least such general knowledge of their legal rela- 

 tions and responsibilities as will prevent them from involving 

 themselves more than they intend. This is not a law book, 

 and it will give no advice or caution beyond such teachings 

 of plain common sense as a layman may properly attempt, but 

 business is business, and, if not done properly, may lead to 

 trouble, and when it does, it is invariably the ignorant or 

 incautious who suffer. There are some things which it is 

 safest not to do, and it will be proper to point these out. 



The only way in which cooperative business on any consid 

 erablo scale can be safely and effectively carried on is by the 

 means of a corporation. Now a corporation is wholly a crea- 

 ture of statute law, and must be founded and governed strictly 

 in accordance with the mandates of law. Thcso are not intri- 

 cate or hard to ascertain; on the contrary, tlioy are simple 

 and within the understanding of all, and, if carefully fol- 

 lowed, enable cooperative business to be transacted readily 

 and safely. 



It seems to me probable that cooperative business will 

 gradually become an important and permanent feature of our 

 social fabric. This opinion is based upon the belief that 

 extreme social pressure will always find ti)e most ready relief 

 in cooperation. Even farmers will combine rather than reduce 

 their standard of comfort. The well-known saying in regard to 

 railroads, that "where combination is possible, competition is 

 impossible," is based upon the experience that between points 

 furnishing a good business, more railroads will be built than 

 are required to do the business, and that competition will 

 ensue until bankruptcy threatens one or both, when combi- 

 nation in some form will follow. In competitive society there 

 is the same tendency in all business, except that the great 

 number of individuals concerned makes combination very 

 difficult. The natural man desires above all things to do 

 what he pleases; so long as he can do that, and be reasonably 

 prosperous, he will make no agreement whereby he foregoes 

 any part of his liberty of action. A few seasons of real trouble, 



