ORGANIZATION OF COOPERATIVE GRAIN ELEVATOR COMPANIES. I 



capital which the prospective membership may be expected to fur- 

 nish. This estimate will be of value in apportioning the equitable 

 share of the total capital requirement that each member should fur- 

 nish when solicited for stock subscription and when the capital re- 

 quirement has been definitely determined. 



Too often subscription lists are circulated and prospective mem- 

 bers solicited to subscribe for as much as they can afford. up to a 

 certain maximum amount. This method may be effective in raising 

 the required amount of capital quickly, but may also result in elimi- 

 nating many desirable members because of relaxation of effort when 

 sufficient capital is in sight. Prospective members will subscribe 

 more readily and more liberally when solicited for a definite amount, 

 which has been determined and apportioned according to an equit- 

 able estimate of what should be furnished by each. 



VOLUME OF TRADE. 



Under the head of local conditions, brief reference has been 

 made to the volume of business that might be expected to originate 

 in the community as a whole and its division among already exist- 

 ing agencies. A consideration of prospective volume from this 

 angle is important, but in addition a careful canvass should be 

 made of the patronage which prospective members may be de- 

 pended upon to furnish. While considerable patronage may be ob- 

 tained from nonmembers when such patronage is solicited, it is bet- 

 ter not to depend upon it, for not infrequently the possible increase 

 in volume from this source is more than offset by patronage which 

 members will give to other agencies and dealers. It is a mistake to 

 assume that when a cooperative elevator has been established it 

 will receive most of the local grain business as a matter of course. 

 While successful cooperative elevators usually handle the bulk of 

 a station's grain, they do so because of having first laid a substantial 

 foundation in the form of a large producing membership. 



METHOD OF SURVEY. 



First, one or more general meetings may be held, at which the 

 need and readiness of the community for cooperative organization 

 should be thoroughly discussed. Every person present should 

 have an opportunity to express himself, but the meeting should not 

 take the form of a protest meeting in which one or two persons are 

 allowed to monopolize the time in abusing the existing agencies and 

 dealers. Such procedure results only in estranging men who come 

 for constructive purposes and for discovering practical means to 

 improve their condition. It will be desirable to have present some 

 person who understands cooperative organization and marketing 

 methods for the purpose of answering questions and outlining 

 organization plans. Such assistance usually can be obtained upon 



