The patron of husbandry. (Columbus, Miss.) 1875-1883, 1880-01-10

consolation that we were instrumental in
calling the attention of our people to a
cheap and simple contrivance calculated to
put money in their pockets
RETAIL COOPERATIVE STORES.
BY A. ]. ROSE, ovERsEER OF THE TEXAS
EsA STATE GRANGE.
Editor Patron. I am satisfied that
many members of our Order are anxious to
understand the principles and workings
of a cooperative store, and that many
would be. actively at work were they
properly informed. Being DESTROYS to aid
in this work, is the excuse have for pre-
senting this article for publication. Pa
irons desiring to start co operative store
join their subscriptions together, then
meet to elect board of directors, five or
seven; these elect from their number the
President, Treasurer and Secretary, and
they select the Superintendent and sales
man, who should not hold any other posi-
ton. The Superintendent superviSes the
business. When everything is ready to
start, the bills with the money should be
sent to the General Manager or purchaser
for the State, as we don't believe in half
way cooperation. The goods should be
sold at about the usual cash price charged
by other merchants where the business is
transacted. 1t is insisted that we stick to
cash sales and cash purchases Profits are
divided in favor of customers who are
members of the Order, and not in favor of
capital, shareholders receiving full divi-
dends and patrons not shareholders re-
ceiving half dividends. The profits on
others trade than Patrons and one half
the profits on Patrons trade who are, not
shareholders is made cumulative and is
divided annually by the number of paid
up shares. Capital is entitled to this
profit because it has carried the risk and
the goods from which this profit has been
made. This profit is made a permanent
fund. When any shareholder has suffi-
cient amount of the emulation for one or
more shares, at the annual meeting certif-
icates are issued, making them transfer a
BILE, and not withdrawable, to any one en-
titled to hold stock in the Association
This stock is entitled to interest and accu-
mutation as other stock By using this
fund in this way it will amount to suffi-
cheney to carry on the business, though
all the subscribed stock shonld be with
drawn. At the close of each quarter, the
goods on hand are invoiced; the board of
directors make balance sheet of the bus
mess; interest on stock is set apart at the
| rate of 10 per cent per annum, and all ex-
penses are deducted from the gross prof
| its; the remaining increase of capital is
net profit. The dividend due each share
| holder is found as follows. divide the net
gain by the amount of trade during the
| quarter, and the q uotient will be the per
cent profit; take the amount of purchases
made by each shareholder and multiply it
! by this per cent, and the product will be
the amount due each on their trade. For
| Patrons who are not shareholders, multi
| ply by one half the per cent. The profit due
each Patron on trade at the close of each
quarter, if not sufficient for a share, S. 90,
should be placed as a credit until it
reaches this amount, wheo a certificate
will be issued which will make them a
| full member, entitled to all the benefits
and privileges of those that paid cash for
their stock. No shareholder is entitled to
more than one vote, and share
holder is entitled to all the net profits
on his or her trade The interest
and accumulation is due annually;
| the trade profit is due at the time the div
idend is declared, and may be taken in
stock. 1t is advised that all profits re-
amply sufficient for the business The
| amount that each shareholder is allowed
to own in an Associstion should be linn
tied; then weak shareholders would soon
have as much invested as any.
To illustrate this: suppose that coop
erative association has 81, 500 capital; that
the store sells during the quarter 81 900
worth of goods that cost but $1,000; the
interest for the quarter would be SCI. so;
all other expenses say $3o2. 50; this would
leave net profit of 5000. This being di-
vided by the sales, $4,000, would show
saving of IS per cent The shareholder
that bought $Ioo worth of goods would
save SIS; the Patron not a shareholder
buying 500 worth would be entitled to
one-half this amount, $3.50; a certificate
would be issued for S., leaving S.. so to
his credit or to draw out at his option.
The following tabular statement will
more fully show the advantages Of Pa
irons starting their own stores and buy
ing from themselves. The calculation is
made for II years, beginning with an in
vestment of $40, allowing 10 per cent in
terest per annum, 10 per cent net profit