228 THE FARMER AS A COOPERATOR. 



Corporate notes are not liked by banks, and some banks refuse 

 them entirely, for fear of legal informalities in their business; 

 banks are unwilling to incur the trouble and expense of inves- 

 tigations. Stockholder's liability is never considered as a basis 

 of security, althougli, should the worst happen, it is made 

 use of. 



Directors in cooperative societies, however, ought never to 

 be expected to become personally responsible for debts of the 

 corporation. They seldom have more direct interest than other 

 stockholders, devote much time, gratuitously, to the common 

 business, and are subject to all the criticisms of the censorious 

 and unjust. If, therefore, without hope of personal profit, 

 they are asked to impair their own credit by borrowing money 

 for corporate use, it is hard to get good men to serve. For 

 these reasons it is of great importance that the organization of 

 cooperative corporations be conducted with the utmost care, 

 and under competent legal advice. By this means those con- 

 cerned with the organization, and who are likely to be the 

 first directors and officers, become familiar with the proper 

 methods of conducting corporate affairs, and are thereby 

 enabled to maintain the credit and standing of the corpo- 

 ration, and prosecute its business with the effectiveness and 

 vigor which knowledge alone can give. 



