6 BULLETIN 860, U. S. DEPARTMENT OF AGEICULTUEE. 
considered, The volume of business which any single elevator is 
able to control will largely determine the minimum margin per 
bushel that is required to meet the overhead and operating expenses. 
The operating cost per -bushel necessarily must be greater in han- 
dling 100,000 bushels per year than it would be in handling 200.000 
bushels per year. This applies with particular force to elevators 
dealing in grain exclusively. Of course, elevators which look to 
an extensive merchandise business for their main source of income 
may handle a small volume of grain with very little additional cost. 
Xot infrequently such operators use their grain business as a feeder 
to their more profitable merchandise business, in which case com- 
peting elevators, handling grain exclusively, are placed at a decided 
disadvantage. 
Although the community need for cooperative marketing can not 
always be judged from the number of existing commercial agencies, 
for cooperative marketing may be made necessary at times by reason 
of having too many such agencies, their number and character be- 
come of vital importance in estimating the probable success of addi- 
tional marketing facilities. Hence, if from a conservative study of 
local conditions and as a strictly business proposition, it does not 
appear that a coorperative company is likely to be successful, its 
organization had better be held in abeyance. 
PROSPECTIVE MEMBERSHIP, 
Having studied the local conditions and the need for organization, 
it will be desirable to test the community sentiment and desire. A 
cooperative elevator to be successful must, first of all. have a mem- 
bership considerable in number and sufficient to insure a dependable 
patronage from the start. Prospective membership should be deter- 
mined, if possible, by actual personal canvass of the community. 
General mass meetings are desirable for the purpose of acquainting 
the public with the principles of cooperative marketing and for 
the purpose of free and open discussion of the need therefor; but for 
the purpose of a concrete and physical appraisal of membership, 
nothing will serve so well as a formal expression from each inter- 
ested person. Every community has " chronic enthusiasts " who are 
in favor of everything that is proposed, but who. when the time 
comes for assuming definite obligations, find it easier to make 
excuses. The personal canvass may be made at any time, before, at, 
or following a general meeting, when the people have been thor- 
oughly acquainted with the objects of the proposed organization. 
CAPITAL. 
The matter of capital requirement is important and the prelimi- 
nary survey should be extended to cover a careful estimate of the 
