(VI 



of commercial weight so sold, mMrkctcd. or consigned, MS liqtii- 

 (l.'ttol d.'itnjifcres. -'is provided in the foregoing lly-l.'i.\\s. which :in 

 hereby m;ule ;v purl of this contr:icl. 



'I'HK KKOKHATION OK < 'OOI'KK ATI \ K ASSOCIATIONS 



The business of a cooperative association can be carried 

 on more economically and effectively when a number of 

 them frder.'ile into :i coopcr.'il ive union \\liich reiiresiMils 

 llieni in handling Hie problems Ihnl ;u - ( < eoiunioii lo (hem 

 .-ill. I'Voin the business standpoint , I he advuntngo Ihal 

 the cupitulisl derives from I he een( r:ili/:i.l ion of lur^e 

 nniounls of c.'ipit.'il inlo corporations e.-ui be obl.-iini'd l>y 

 the producer l>y I!H > federntion of cooperative associations 

 in a central democratic orgaiii/,:i.lion. The federation 

 can develop a comprelieiisive marketing system; it can 

 reduce tin 1 cost of production, of preparing the products 

 for shipment , and 1 he distribution and sale of t he products. 

 Such a cooperative union should be democratic in prin- 

 ciple and not autocratic. It should represent centralized 

 cooperation. It handles the questions that ailed the 

 local associations as their representative or agent, and it 

 can perform this function more economically and elli- 

 eiently because the expense of comprehensive manage- 

 ment is prohibitive in a small association. I, ike the large 

 corporation, a central cooperative union representing a 

 number of associations has a larger influence than a small 

 group of farmers \vorking alone in dealing with trans- 

 portation, legislative, and other public policy questions, 

 in the purchase of supplies, the distribution and sale of 

 products, in the development of markets, and in prevent- 



