ly. Co-operative action,
though it begins in economics, extends to and ends in the creation of
ideal, socio-psychological values. The co-operator works and fights in
the spirit of solidarity. He satisfies his wants through concerted
action. His psychology is more complex and his aims become higher than
those of a private individual.

Co-operation is a child of necessity. It cannot be created by outside
suggestion or mere preaching. When there is a need and conditions are
favorable the co-operative movement comes into being. Unquestionably the
need for co-operation is greater in the rural districts than in the cities,
and yet the rural conditions in many respects make the development of
co-operation more difficult. The main obstacles, according to the rural
co-operators themselves, consist in the lack of business connections and
markets, in the absence of knowledge of efficient business methods, and in
credit difficulties. It is hard to find an able and trustworthy business
manager for a co-operative store in a village.

Notwithstanding all difficulties, the co-operative movement among
farmers and especially among immigrant settlers has lately begun to grow
with extreme rapidity. For instance, in 1917 in the state of Wisconsin
there were agricultural co-operative associations in the following
numbers: 380 creameries, 718 cheese factories, 98 feed and produce
associations, and 124 live-stock concerns.[20]

One of the first difficulties in the way of establishing a co-operative
association is its incorporation proceeding. Most of the states up to this
time have had no special laws covering co-operative associations. In such
cases they have to be incorporated under the laws relating to private
companies or those covering charity and public-welfare associations.

A number of states have enacted laws for the promotion and protection of
co-operation among farmers. The Wisconsin law, Chapter 368, Laws of 1911,
makes provision for the establishment of organizations conducting business
on the co-operative plan. No member is allowed to own shares of a greater
par value than one thousand dollars. No member is entitled to more than one
vote. Dividends on the paid-up shares are allowed to be no more than 6 per
cent per annum; 10 per cent on the net profits has to be set aside as a
reserve fund. When this has accumulated up to 30 per cent of the paid-up
shares, 5 per cent goes to the educational fund to be used for teaching
co-oper