ORGANIZATION OF COOPERATIVE GRAIN ELEVATOR COMPANIES. 27 



the lowest bidder be accepted as being the cheapest, and it is de- 

 sirable to have some disinterested expert analyze the different pro- 

 posals in detail and later to protect the interest of the association 

 by seeing that the work is done according to contract terms. While 

 the size and equipment of the plant must depend always upon local 

 conditions, a smaller and better equipped plant is preferable to one 

 larger and less efficiently equipped. It should be remembered that 

 a large storage capacity may be desirable for certain purposes, but 

 that with such a plant there is ever present the temptation to fill it. 

 During periods when cars are difficult to obtain and the condition 

 of grain is such that it can be stored on the farm more safely than 

 in an elevator it is almost impossible for managers to refuse to 

 receive grain while a storage space remains, and the chance for 

 financial loss through deterioration is made the greater by having 

 excessive storage capacity. An elevator which has a capacity of 

 from 25,000 to 35,000 bushels, equipped in a modern manner, and 

 which is capable of being emptied quickly when cars are available 

 seems to be the plant generally favored by elevator companies which 

 do not make a practice of storing grain for a storage charge. In the 

 selection of a plant type it may be well to have in mind possible 

 extensions and enlargements and to plan accordingly. Concrete 

 construction offers stability and economy in insurance costs. On 

 the other hand, wood and steel offer advantages when remodeling 

 to meet change of conditions or when it becomes necessary to aban- 

 don and wreck the plant. The correct type can be determined only 

 with reference to specific local conditions and requirements. 



DIRECTORS. 



The directors are responsible to the membership for the success- 

 ful conduct of the affairs of the organization. The type of men 

 selected for directors will have much to do with keeping the confi- 

 dence and loyalty of the membership. They should possess keen busi- 

 ness judgment, but in carrying out their duties they should be able 

 to subordinate their private interests and to work for the welfare of 

 the organization. Men with a reputation for honesty and for open- 

 minded conservative judgment are to be preferred. They should, 

 of course, be competent and should believe in the cooperative system. 



MANAGER. 



The most important duty which the directors will have to perform 

 is the selection of a business manager. All personal preference must 

 be laid aside, and the interests of the company as a whole be con- 

 sidered. The position of manager of a cooperative elevator company 

 is a peculiarly difficult one; the individual members must be satis- 

 fied and at the same time the financial interests of the company con- 



