COOPKRATIVK CORPORATIONS. 221 



amount of capital required to transact it. In soliciting sub- 

 scriptions to stock tliey are apt to represent — as they fully 

 believe — that the first payment is all that will be required ; 

 hence when the call comes for tlie second and the following 

 payments, there is disappointment and complaint. 



But the assessment of stock which has been fully paid up 

 is quite another matter. If I subscribe for stock to the amount 

 of $100, I must not complain if I am called upon to pay $100; 

 but if I am called upon to pay more than that, there is almost 

 certainly some one to blame. The mere fact of such an assess- 

 ment is ordinarily evidence of mismanagement. As a rule, 

 when such assessments are made they are for the purpose of 

 paying indebtedness which should not have been incurred. 

 The one who is usually to blame, when assessments on paid-up 

 stock are made, is the stockholder himself. In all corpora- 

 tions the power rests with the stockholders, and where the 

 power is, there must rest the responsibility. It is true that 

 corporate affairs must be mostly transacted by directors, but 

 those directors are chosen by the stockholders, who have also 

 power to instruct them, and to see that they follow instructions. 

 It is true that we may be deceived, both as to the honesty and 

 the ability of our agents, but if we use ordinary diligence in 

 attending to our own corporate business, we are almost certain to 

 discover it in time to prevent serious injury. If we fail to use 

 such diligence we have no one to blame but ourselves. 



In nine cases out of ten financial trouble in cooperative 

 corporations, leading to assessments on j)aid-up stock, is due 

 to non-attendance of stockholders at stockholders' meetings 

 and non-use by stockholders of the facilities which they have 

 provided for themselves, and which it would be to their 

 advantuge to make use of. By attendance at stockholders' 

 meetings, and by frequent calls at its place of business, and 

 conversation with the managers and with other stockholders, 

 the owners of the business may be kept constantly advised of 

 its condition and prospects, and may always avert serious 

 financial trouble. 



One very common cause of financial trouble in cooperative 

 societies is lack of patronage by the owners of the business. 



