COOPERATIVE MILK-DISTRIBUTING PLANTS. 3 
quate accounting system is indispensable in keeping a check on the 
business. 
)| A conviction on the part of the members that cooperation, or a 
} working together, will benefit each individually is essential for the 
fisuccess of the organization. The members should understand that as 
members of a cooperative organization they must give it their moral, 
financial, and material support, for its success depends directly upon 
them. Every member should regard the cooperative milk plant as a 
business enterprise whose success will contribute to his success. Its 
cooperative features give it no supernatural power that will keep it 
from failure when it is mismanaged or not properly supported by its 
-members. 
Before launching into the operation of a cooperative milk plant, 
adequate capital for financing it should be assured. Unless the plan 
of financing will permit the purchase of necessary machinery, equip- 
ment, supplies, etc., when the plant is started, provide adequate work- 
ing capital, and enable additional equipment to be purchased, when 
needed, during the operation of the plant, sooner or later financial 
difficulties will be encountered. Complete estimates of the total 
capital investment should be obtained from reliable sources, and the 
plan of financing adopted should adequately provide for the raising 
or securing of the necessary capital funds. Large loans, bonded in- 
debtedness, or other liens against the organization should be avoided. 
No financial handicap should be placed upon the organization, for 
the problems to be met may be difficult enough without introducing 
unnecessary financial ones. In fact, the organization should be 
started under most favorable conditions and the problems of financing 
should be solved before the organization enters into the business of 
milk distribution. 
A fifth essential to the success of a milk-distributing plant, is the 
maintenance of high standards in the quality of the product handled 
and sold. The raw material received must be carefully produced 
under sanitary conditions, must be handled by modern up-to-date 
methods, and sanitary conditions must prevail in the plant. Without 
high quality in the product, customers are likely to become dis- 
satisfied and the business fail because of ‘lack of patronage. 
Another essential is a sound business policy in conducting the busi- 
ness of the organization. Such a policy must be adopted by the 
board of directors, for without it the manager can not know that 
his action will meet with the approval of the board. An organiza- 
tion with a board of directors that has adopted a sound business 
policy may succeed with a mediocre manager, where otherwise it 
might fail. Likewise an organization with a most competent man- 
ager but having a board of directors which will not support a sound 



