luhlisted once a week in I aimer, Alaska, for the
Matanuska Valley Farmers' Co-operating Association,
for the purpose of divine; nev/s of the Association's
work, problems and accomplishments.
DEFECTS Of COOPERATIVES
Last week, we told you of the progress that Co-operatives have been
makinr during the past ^rear. Now, it v/ould be a ^ood idea to study
the weakness ^f C^-operatives. Self-ex°mination often leads to im
provement. Unless we are willing to acknowledge our shortcomings, it
is very hard to ret rid of them. Co-operatives, like all social and
economic organizations, have their problems to meet, as well as the
individual. The dreamed of '’Utopia” still hasn't been developed, and
we mi^ht as well admit that it probably won't be for a lone time, if
ever.
One of the most interesting treatises we have seen lately on ques
tions pertinent to ^ur Co-operative, is the last yearly report of the
lacific Supply Co-operative of Walla Walla, Washington, This is a
wholesale Co-operative. Their business is to supply about 60 North
west Co-Operatives with their wholesale needs. They are closely affil
iated with National Co-operative organizations, and business relations
with many C^-operatives enable them to learn their shortcomings. In
fact, they have found it extremely useful to create a department which
cives customers advice on many subjects; financial and membership re
lations, particularly. Many small Co-operatives with which they do
business, dr': not have competent management. Others suffer ^ther ad
verse conditions. When these C-^-operatives run into trouble, the lac
ific Supply provides them with expert assistance, ani endeavor to
train and supply qualified managers. Studying the reasons for diffi
culties of Co-operatives that come under their observation, they find
most of the trouble comes from the absence of sufficient working cap
ital and po^r management. We feel our Co-operative could be classed
with these Northwest organizations, for, like "Topsy", we too, just
crowed. Our bv-laws sh^w the result of po^r and wasteful thinking* on
the part ^f the so-called experts who framed them for us.'
We never had adequate w^rkln^ capital at anv time. Our members were
so hard pressed to make ends meet, that we have had to return a lrt of
our money (that should have been retained for working capital) to our
members to enable them t^ exist. If any Cnperat 1 ve was built from
the ^round up, ours has been. When It was starter* In 193^, very few
of It’s members had anything to offer for it's founding, except their
limited support by being consumer members.
It is true the U.S. Government furnished, funds to establish the pro
ject, but with the understanding th°t it must be repaid with interest.
Then, when the time came that the farmers felt they could purchase and
manage the Co-operative, this was done, and the obligation assumed by
the members. Many members believed we could n°t keep-1 our heads above
water when we made the deal, but we did. However, it has not been
easy. We have suffered from mistaken judgment by some of ^ur Hoards
of Directors, and s me Managers have ma :,e "riev^us mistakes too. In
spite of all this, and the faults of many members, we have made defin
ite progress. When one reads the results of the survey made bpT the
Pacific Supple of their customer Co-operatives’, perhaps ours isn’t tor
bad. Some Co-operatives were suppl^ino ~nly lof of the goods and ser
vices their members needed, and in spite of o^d times, many organiza
tions were retting slower and slower in meeting rbli^ati 'ms .
In a conversation with a man from the hi'* Co-operative state of Minn
esota, who sells and services dairy machinery, v/e have his opinion a
bout Co-operatives. This is what he said, "In many years of experience
I have learned that about the only thing that w*11 positively break up
a Co-operative, is when the members.be^in to fight among themselves”.
In this particular thing, we have been very fortunate. It happened to
us, and we still pulled through.
Especially, should v/e be proud of the fact, that-, of the 67 projects
of. this kind that were started in the middle thirties, we are the only
one that is still operating We still have many problems, but, by
having faith, hope and perseverance, we can surmount any ordinary ob
stacle. .
C.R.Rasmussen