velops, the local associations are
federated for larger business transactions, but these are governed by
delegates carefully chosen by the members of the constituent bodies.

The object of such associations is, primarily, not to declare a
dividend, but rather to improve the conditions of the industry for the
members. After an agreed interest has been paid upon the shares, the net
profits are divided between the participants in the undertaking, to each
in proportion as he has contributed to them through the business he has
done with the institution. And the same idea is applied to the control
of the management. It is recognised that the poor man's cooperation is
as important as the rich man's subscription. 'One man, one vote,' is the
almost universal principle in cooperative bodies.[5]

The distinction between the capitalistic basis of joint stock
organisation and the more human character of the cooperative system is
fundamentally important. It is recognised by law in England, where the
cooperative trading societies are organised under _The Industrial and
Provident Societies' Act_, and the cooperative credit associations under
_The Friendly Societies' Act_. In the United States (I am told by
friends in the legal profession), the Articles of Association of an
ordinary limited liability company can be so drafted as to meet all the
requirements I have named. Most countries have enacted laws specially
devised to meet the requirements of cooperative societies. However it is
done, the essential of success in agricultural cooperation is that the
terms and conditions upon which it is based shall be accepted by all
concerned as being equitable in the distribution of profits, risks and
control. It then becomes the interest of every member to give his
whole-hearted support and aid to the common undertaking. To accomplish
this, it is necessary to explain and secure the acceptance of a
constitution and procedure carefully thought out to suit each case. It
will be readily believed that associations of farmers which will meet
these conditions are not likely to be spontaneously generated; hence the
necessity for a plan and for the machinery to carry it through.

In this matter I am here speaking from practical experience in Ireland.
Twenty years ago the pioneers of our rural life movement found it
necessary to concentrate their efforts upon the reorganisation of the
farmer's business. They saw that foreign competition was not, as was