Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1892-03-16
BOGUS COOPERATION.

The National Union Co.'s Plan is a FIimsy
Subterfuge For MOnOpOlIstic Scheme.
Just at this time when so much is
being said and written about a gil |
gantic so-called cooper alive scheme, |
which, however, is in no sense cooper !
alive, it might not be out of place TO
see just what could be accomplished by
a bona fide cooperative mercantile as
ISOLATION. ounA
shall use the same house sniliar fig
ures to illustrate m ag, to-wit:
So, 200 capital, sal. 4IinuaT 2 purchases,
$40, 600 annual sales, average profit %
per cent It will be seen at a glance
that this set of figures involves the
turning over or conversion of the cap
ital stock every thirty-six days
Let US assume that 166 farmers
and mechanics owning property to the
extent of being able to make what Is
| called ''bankable note" combine to-
gether, take out a charter as a copora-
ton, make a n1te for So, 200 Endorsing
same as individually and in favor of
| some two or three of their number
who own unincumbered real estate
| upon which can be borrowed So, 300 for
| five years at per cent Thus is pro-
vided the working capital of So,
| We then have
| Gross profits-one-ffth of gross
sales. .......................... $4,000
| Expense
/ Rent fuel, insurance, taxes, ETC.. 81 900
| Clerk hire-one chief and two as
sistants. ACKNOWLEDGEMENTS. 1000
| Freight drayage etc............. $50
Interest at ~ per cent. on capital 24O
$1,000 10000
Net annual profit. ............ 100000
Thus it seems that 166 heads of fami-
lies spending $3.50 each in the run of a
year and paying cash as they go, can
not only pay all expenses and interest
upon their borrowed capital, but have
their capital doubled at the end of the
first year. This is no more preposper-
GUS or unreasonable than the figures
given in the Advocate by San Alliance
Member" to illustrate the workings Of
the national union plan. There is sim
ply difference in the way the profits
are divided and the disposition made of
the advantages connected with the CO.
operative features of the two plans.
No one will deny that for cash, one
establishment may buy just as cheaply
from first hands, as the other.
Under the national union plan the
corporation, or company, would get OF
the "a, 900 profits above set forth, the
sum of 81. 666.66, or s3% per cent inter
est upon the working capital of So, 200,
white the store manager and custom
ers get each 5000 g. 1t matters not
how many heads of families compose
the cooperative association or what
sum their annual purchases average
it NAV be 166 shareholders, averagin 6
annual purchases of $3.50 each, or 4O(
averaging 500 each. Nor does it mat
ter how unequally the stock may bt
held or divided. The principle gov
erning the case is clear and ex
plicit The capital stock subscribed
is entitled to the legal current rates o
annual interest no less, certainly n,
more. AS profit" an individual store
} keeper is entitled to enough money
| after paying all expenses, to pay him
fair salary; a comfortable decent hv
? ing. Now, for fear some may say this
r s6 per cent is too large gross averag
4 profit to count upon, we will reduc
r the profit upon the $40, 900 annual sale
Y to So, 000-which is but 14.2s per cen
a proft-leaving the expenses as before
d and we yet have 81. 900 per annum as
8 SINKING 1uno 10 pay the 50, 200 borrowe
. capital. when it becomes due at tn
|. end OF the Eve years This is co-oper
ton.
Now let us take another glance
the modus operandi of the Nation,
ir Union Co First there is nothing,
a far, to show that the company ever Il
Of vests one dollar in the venture.
at pays for the S.. coo stock of goods FIR
r. cost IS, 2oO) with its debenture bon,
ly for So, 200 drawing a guaranteed rate
,ir per cent interest. The goods as so
e. are supposed to pay for themselves al
or a gross profit OF IS per cent Am
,ir right? Let us see. In order to NAL
rs annual sales amounting to $40, 900, Il
.r- capital stock of - 400 must be invest,
r. and turned over profit ten time
nr or once every thirty-six days At Il
ed end of the year the s., 200 capital is y
Il there as in the beginning and there n
been realized So, 0C0 profits. Let us .
what becomes of these profits