198 
fl* RURAL NEW-YORKER 
A Primer of Economics 
By John J. Dillon 
Part IX 
Greater care and detail are necessary 
m the formation of a co-operative or¬ 
ganization than of a stock company. The 
laws under which stock companies are 
organized have been perfected during the 
past GO years by the best legal minds in 
the country for the control of them by 
capital, and to perpetuate the men in 
power who are once put at their head. 
These men are first arbitrarily se¬ 
lected. under the law, by the origi¬ 
nal promoters of the enterprise. They 
usually contribute a large share of 
the capital, and by their own hold¬ 
ings and proxies are able to control 
the future vote. Because of their large 
stock holdings they are personally inter¬ 
ested in the success and profits of the 
business, aside from the positions they 
hold in the management. In a great 
majority of the ordinary stock companies 
the officers in control are the principal, 
if not the sole owners, and the business 
is conducted under the inspiration of 
self-interest. 
In the co-operative enterprise the laws 
under which they operate have not been 
fully perfected or tested. It is a system 
in itself, but it is not clearly so defined, 
and it is in consequence embarrassed and 
hampered by complications in other laws 
and restrictions in them. The members 
are numerous, and often widely distri* 
buted. The officers have little capital in¬ 
vested in it. and consequently little or no 
returns in dividends. Their personal in¬ 
terest largely is iu their salaries, and 
they are often tempted to sacrifice the 
best interest of the organization to a 
policy that will for the time being, at 
least, keep themselves in position and 
leadership. With a loose organization and 
a proxy vote they may. except in times 
of stress and anxiety, perpetuate them¬ 
selves iu power through a comparatively 
small minority of the membership, and 
this, iu time, causes dissatisfaction aud 
dissensions. Even without the proxy aud 
no gcueral plan of ballot for all mem¬ 
bers a small majority can, and usually 
do. control the organization by a little 
skilful manipulation of a public meeting. 
- Many times the meetings are infested 
with representatives of dealers or dis¬ 
tributors. whose interest would be injured 
by the success of the co-operative busi¬ 
ness, and they do all they can to dis¬ 
courage a proper organization iu the hope 
that loose management may lead it to 
failure. Not infrequently dealers and 
parties interested mislead or allure well- 
kuown men in the neighborhood to lurther 
their interests by opposition to the co¬ 
operative enterprise, and this opposition 
is one of the most difficult to overcome. 
All of these things are by no means 
general. Men often make great sacrifices 
of time and money to promote co-opera¬ 
tive enterprises, and work unselfishly lor 
the general good. Iu the history of the 
work as a whole, however, selfishness and 
incompetence have often defeated the best 
interests of the enterprise, and co-opera¬ 
tive wrecks have been frequent enough to 
justify special care iu the details of or¬ 
ganization aud in the selection of experi¬ 
enced managers. 
At the inception of the organization 
there are likely to be bright prospects 
and much enthusiasm. In these meet¬ 
ings. as in all places, the strong and 
capable men are the most modest. They 
are usually in a minority. For the most 
part they occupy the rear seats at all 
times, except when contributions are to 
be made. They do not seek recognition 
or office. If drafted or invited, they 
would appreciate the compliment, and be 
glad to serve the community with a pub¬ 
lic spirit, but they would uot permit 
themselves to profit by the positions. In 
fact, they would take them at a sacrifice 
of personal interests, and they would uot 
of their own initiative seek the positions. 
The less capable are less modest, aud 
usually more numerous. The most ready 
talker is uot necessarily the most capable, 
but he is likely to be more iu evidence. 
If there is advantage in the position, 
some one without regard to qualifications 
for the place is ready to seek it and 
working for it. He is pretty sure to get it. 
, Under such circumstances waste and 
extravagance are sure to develop. Inef¬ 
ficiency becomes manifest, and sooner or 
later there are losses and regrets, failure 
and scandal. 
These difficulties are overcome by care¬ 
ful and detailed organization and man¬ 
agement. A comprehensive law is, of 
course, the first essential. Then the 
work of organization will largely follow 
legal requirements. At the very outset 
and before officers are selected, a commit¬ 
tee of the most experienced and capable 
members should be selected to prepare 
comprehensive by-laws. A good way is 
to put temporary directors in the char¬ 
ter. and when all is ready have them 
resign, and elect by secret ballot the first 
board of directors. In addition to the 
ordinary rules, the by-laws should con¬ 
tain the following provisions: 
A careful outline of the form of gov¬ 
ernment to be employed, which, of course, 
must be in harmony with the law under 
which the association is organized. 
A list of the officers to be elected ; their 
tenure of office; their salaries, if any; 
and a definition of their power and au¬ 
thority. 
A rule for submitting proposed impor¬ 
tant contracts between members and the 
association to members for discussion and 
study for a given time before execution ; 
and for fully setting forth the conditions 
of the contract as it affects both parties 
to it. 
• Provide for liquidation of it* assets 
in case of insolvency or for other reasons. 
Provide for the admission of new mem¬ 
bers on equitable terms, and opportunity 
for their withdrawals at their own op¬ 
tion at stated times, aud for the dismissal 
of members aud officials for causes after 
hearing. Provide that memberships are 
not transferable. 
Forbid subsidiary organizations, or any 
other device that would favor some mem¬ 
bers over others. Authorize the associa¬ 
tion to become a member of another cor¬ 
poration organized under the same act. 
The election by the members of an 
election committee to perfect a system 
of vote by secret ballot by which each 
member would have the opportunity aud 
convenience of voting for men and poli¬ 
cies. It should provide for vote by mail, 
but prohibit vote by proxy. 
An election of an audit committee, the 
members of which hold uo other office 
in the corporation, charged with the duty 
of auditing the accounts aud making full, 
complete and regular reports to members 
of the business and financial conditions of 
the corporation. 
The annual election of the president 
and a board of directors by secret bal¬ 
lot by personal deposit or by mail, and 
February 5, 1921 
for the submission of important policies 
and unusual appropriations to the mem¬ 
bers in a referendum vote. 
The selection of a business manager by 
the board, for the execution of the busi¬ 
ness. 
A budget of expenses and an assessment 
to meet the amount needed* 
Strict economy in every department. 
Fix the degree of responsibility that 
the individual members assume for the 
obligations of the association, and limit 
the amount of indebtedness the corpora¬ 
tion could assume by official authority 
without a special referendum vote of the 
members. 
The rule that members who hold po¬ 
litical office are ineligible to hold office 
iu the co-operative corporation. 
The bonding of all officials dr employes 
who handle funds of the corporation. 
The revision of the by-laws by the 
members at any regular meeting or at a 
special meeting called for the purpose. 
The greater the care in organizing and 
the stricter the rules are followed in 
practice, the better the prospect of per¬ 
manent sueccess in the business. 
While all forms of co-operative organi¬ 
zations are yet more or less in the stage 
of development, there is substantial agree¬ 
ment among disinterested students and 
succcessful practical workers that the 
basic co-operative unit, must be restricted 
to a limited territory, and that the 
chances for success are improved when it 
(Continued on page L'OO) 
T / { (/ y I'JTL 
ILL. 
t n n\ i iu )j/ tu\// 
Why turn your dairy into 
a fertilizer factory? 
Your object in dairying is to produce milk at a profit and not fertilizer at a loss. Food element* 
contained in feeds are expensive and should be converted into milk. 
A great many dollars worth of food elements contained in feeds fed to dairy cows are lost by 
way of the manure pit. Such waste is due to the feeding of unbalanced rations. Too much roughage 
is fed without regard to its correct nutritive value and often grain rations are not compounded 
to blend properly with the roughage to form a balance of all the elements required. 
TI-O-GA 
.FEED 
SERVICE 
overcomes this waste by classifying the varieties of roughage according to their nutritive content 
and furnishes a brand of TI-O-GA Dairy Feed to combine properly with each group to torro 
balanced rations and prevent waste. 
Red Brand 
T1-OGA Dairy Feed 
to be fed with low protein suc¬ 
culent roughage: Silage, Pas¬ 
turage, Green Fodder, etc. 
White Brand 
TI"0"GA Dairy Feed 
to be fed with medium protein 
dry roughage: Timothy Hay, 
Mixed Hay, Corn Fodder, etc. 
Blue Brand 
Tl-O-G A Dairy Feed 
to be fed with high protein 
dry roughage: Clover Hay. 
Alfalfa, etc. 
WHITE 
w BRAND 
In each case the cow gets the same amount of nutrition in the same nutritive ratio and you get 
more money from your roughage. If your dealer does not have the kind of TI-O-GA Dairy Feed 
to balance your roughage, 
advise us and we will ar¬ 
range for some nearby dealer 
to supply you. 
Our book on TT- O- GA 
Feed Service and explana¬ 
tion of how the three feeds 
give the same results, seni 
free on request. 
j KB ..•w v.™ ___ - Tioga Mill & Elevator Co. 
miM .... ... Waverly, N. Y. 
- fifn \ 
bfjx BRAND iTH.Yfr 
Use the Tl-O-GA Dairy Feed 
which forms a balanced ration 
with your own roughage. 
h' 7 VI-', 
irj-JLT h 
Ik ill’ *• 
The same careful service is 
furnished through: 
TI-O-GA Brood Sow and Pig 
Feed. 
TI-O-GA Growing Shoat Feed. 
TI-O-GA Fattening Hog Feed. 
TI-O-GA Chick Feed. 
TI-O-GA Growing Mash. 
TI-O-GA Growing Grains. 
TI-O-GA Laying Food. 
TI-O-GA Poultry Grains. 
TI-O-GA Calf Food. 
TI-O-GA Horse Feed. 
Colonel's Ration (Full Feed for 
Horses). 
