2 BULLETIN 860, U. S. DEPARTMENT OF AGRICULTURE. 
special cooperative laws and the laws governing corporations in each 
of the several States. 
The success of any organization, whether cooperative or for private 
profit, will be found to rest upon: (1) Social or economic need; (2) 
a sound organization plan; and (3) efficient management. The lack 
of any one of these fundamentals impairs the whole. 
A cooperative elevator company, like any other business organi- 
zation, must rest first upon some substantial economic need. An 
organization may come into existence by means of propaganda and 
enthusiasm engendered to serve a political, fraternal, or idealistic 
purpose, but unless some substantial benefit or service is secured to 
the community such organization eventually must fail. The value 
to the community of any enterprise or undertaking is measured in 
direct proportion to the need therefor. 
The plan of organization must be sound. This means that some- 
thing more is necessary than mere statements of the high purposes 
and aim of the association. It means a definite and practicable 
plan of action, a plan which anticipates so far as it is possible to 
anticipate the practical problems and difficulties to be met in actual 
operations. 
A cooperative enterprise in order to be successful must be con- 
ducted under efficient management and in accordance with a well- 
defined business policy. There has been too much tendency in the 
past to employ as managers men who are merely industrious and 
honest and who may not have that keen, discriminating judgment 
and tactful address so necessary in managerial positions. 
FORMS OF ORGANIZATION. 
In the United States three distinct forms of farmers' elevator 
organizations are found, namely, (1) joint stock companies and un- 
incorporated societies; (2) ordinary private corporations of the 
capital-stock form; and (3) cooperative associations incorporated 
under special cooperative law. 
JOINT STOCK COMPANIES. 
The advantages of the joint stock company form of organization 
consist mainly in— 
(1) The ease of effecting organization, no formal procedure being 
necessary. 
(2) The saving of fees connected with incorporating. 
(3) Exemption from certain taxes affecting corporations. 
(4) Relief from the necessity of filing numerous corporate reports 
sometimes required of corporations. 
The joint stock company is adapted principally to small and com- 
pact organizations which desire to utilize some of the features of 
