PALMER, ALA SECA - Dorothy M. Boll, Editor
Published every Thursday at Falnor, Alaska, for; tho Matanuska Valley Famers’
Cooperating Association for the purpose of giving nor/s of the Associations Work
Problens and Accomplishnonts.
SUBSCRIPTION BY MAIL $1*75 BOX' $1.00 SINGLE COPY. 10/ i
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SOME "SHALT* S" ond "SEAIL NOT’S" FOR COOPBRATTE3
Cooperatives have been organized along certain principles and unless theso principles
arc carried out by tho Cooperatives, thoso Cooperatives stnn d in danger of eithor'
losing thoir identity as Cooperatives or in failure, Thoroforo, it has been consid
ered as advisable that Cooperative organizations keep the principles of Cooperative
Organizations constantly beforo the ner.borship lost thoy forgot sono of the most
important reasons for their existence.
Mr, E.A. Stokdyk, President Berkley, California Bank for Cooperatives summarizes
those principles in a briof form of commandnonts. Thoy are based upon observations
nadc of the -most sucoossful cooperative organizations and have thoroforo boon accepted
as sound practices by Cooporativo loaders and educators.
"SEA.LT NOT’S"
li Don,t onploy relatives of officers or directors,
2i Don’t attempt to "pog" tho market or withhold supplies to maintain prices,
3, Dcn’t grant any special terms or conditions to selected members or the Board of
Directors, -
4, Don’t ovcr-advnnco.to members on the products delivered to tho association. Over
advances _lead to bankruptcy.
5, Don’t blame competitors for tho condition 9f your association. . This is a sign of
• woaknoss.
6, Don’t advance production credit to members. Separate organizations should be :
formed for this purposo. It. is unfair to.extend credit of the organization to a few.
"SEALT’S" TEL POSITIVE FRINC3PLES
1. To arrange tho legal ond financial structure in such a manner that thoso The use
the facilities of tho association have voting control.
2. To mako provisions in the by-laws which stipulate that amendmento bo submittod to
the membership well in advcnco of final action upon thorn,
3* To inform the membership of the'"results of operations, whether or not thoso results
reflect credit upon the management. Admitting'that mistakes in judgment are a part
of any businoss organization, docs one no ham.
4. To render true and adequate statements of the affairs of the association to tlie ’
members periodically, employing for this purpose competent, non-interested auditors
to audit the books, records and accounts of the association at least once a year.
5. To give tha manager full power to discharge any or all employees. 'This tends to'
promote harmony in the organization. If the manager abuses the power, he may be dis
charged by tho Board of Directors.
6. Tc provido election machinery which will enable momborg- to express their choico of
directors. Voting trusts, advisory committees or cloction committees tend to prohi
bit membership selection and this leads to lack of membership interest and with
drawals, . „
7, To plan financial arrangomonts woll in advance in order that credit agendos may
review prospective operations in detail boforo funds arc advoncod. A budgot of oper
ations is equally helpful to the managemont of tho Association,
8. To arrange tho financial structuro in such a maimor that tho capital of the associ
ation is not a loan or an obligation.
9. To provido rosorvos comparable.to the risks of the organization. If storage oper
ations arc undortakon, a rosorvo sufficient ojt) cover tho loss which might bo expert*
oncod during a given soason is advisablo*.. A reserve equal at least to tho overhead
expenses which would be incurred if^tho association did not oporato for the ontiro
season is •essential. , , 1 """ •, / l.
10. To have patience with members who havo questions to ask or who' have boon misled
by' mi s inf ormat i on.
Tj.To define specifically the dutios and powers of omployQos ip order to,avoid con
£2 lot. v •’ *
is the function of the board of directors to prescribe the policies of the associ
ation to nil phases of its oporationfi. The management is charged with responsibility
of executing the policies proscribed, and *lso in comprehensively reporting to tho
'xard of directors tho manner in which it has executed tiiam. It i3 a* definite respon
sibility of‘the board of directors to soo that 'the polipios laid down by them are
carried out.