86 Cooperation in Agriculture 



all cooperative efforts by the abuses of the organizations 

 that are not formed on the cooperative plan. An organiza- 

 tion that is formed as a stock corporation primarily for 

 pecuniary profit and which does not operate to some ex- 

 tent for the benefit of its members should be debarred 

 by the statute from using the term "cooperation" or 

 "cooperative" in connection with its corporate name. 

 If, as a stock corporation, it is successful and helps the 

 farmers who are stockholders or the contract shippers 

 solve the problems of distribution and sale, it deserves 

 to live, but it should not be allowed to secure the support 

 of farmers under the supposition that it is an organiza- 

 tion formed on cooperative principles. The cooperative 

 method of transacting business is radically different from 

 the usual stock corporate method. The object of the 

 former is not primarily to declare dividends. It is formed 

 to build up and improve the industry through the appli- 

 cation of business methods which are carried on at cost, 

 the earnings all going to the producer. The basis of one 

 is capital, and a leading motive is the dividends which 

 the capital earns ; the cooperative method has personal 

 effort joined with the efforts and products of others, all 

 working in union to make better farming possible by giving 

 the farmer the largest possible return for his labor and 

 for the risk he takes in the conduct of his business. 



