(2) Cooperation in production involves democratic management of a business as well as a more radical sharing of its profits. The workers themselves contribute the capital, elect the managers, and divide the profits. By their votes they can determine hours of work, and arrange conditions to suit themselves, so far as their capital allows. Cooperation-when fully carried out-is socialism on a small scale introduced into the midst of a capitalistic regime. Its defects are, first, that it is difficult while that regime lasts to find capital enough-since those who have capital to invest usually prefer to manage the business themselves or to entrust their money to a business conducted on ordinary lines; secondly, that failure means the loss of the hard-earned savings of workingmen; thirdly, that it is difficult to retain skillful managers, since such men usually prefer the opportunities which individualistic business offers of making a larger income; and fourthly, that it is difficult for a democratically managed concern to compete successfully with autocratic business. Political democracies are at a disadvantage in a struggle with tyrannies, if the latter are governed by able men. A one- man policy is more stable, permits of quicker action and a more consistent policy than is possible to a democracy. Exactly so in business, our dictatorial captains of industry have an advantage over their usually less skilled and always less powerful heads, and their smaller capital. The millionaire can cut prices and stand losses which would ruin a cooperative body of workingmen. So that cooperative production has not generally proved successful. In any case, there seems to be no probability of societies of producers being able to supplant the capitalistic concerns; we must turn elsewhere for the solution of our problems. (3) Consumers' cooperation has been more widely successful. On this plan a number of people contribute the capital of a business in equal small amounts and share the profits in proportion to their purchases. The possibility of excessive profits to a single owner or a small group of owners is thus abolished. But the other evils of autocratic industry remain; laborers are hired for current wages, as by the capitalists, and the temptations to unfair treatment of employees and of competitors remain.