The advocate., 1892-02-17
COOPERATION WHICH DOES NOT CO.
OPERATE
To the Editor OF THE ADVOCATE.

being said and written about gigantic
so-called cooperative scheme, which,
however, Is in no sense cooperative, II
might not be out OF place to see just what
could be accomplished by bona tlde CO.
operative mercantile association.
shall use the same old familiar figures
to illustrate my meaning, to wit: $4,000
capital, $4,000 annual purchases, S40,-
600 annual sales, average profit 25 per
cent. It will be seen at glance that
this set Of figures involves the turning
over or conversion of the capital stock
every thirty-six days.
Let us assume rs folio Is, 1856 farmers
aud mechanics owning property TO the
extent of being able to make what Is
called "bankable note" combine to-
gether, take out a charter and as cOrpO-
ration, make note for $4,000 (endorslng
same as GndiUidual0 and In favor of some
two or three of their number who own
unincumbered real estate upon which
can be borrowed $4,000 for fYe years at
per cent. Thus Is provided the work
ing capital of $4,000. We then have
Gross profits -onenfth Of gross .......
| sales. neutrality-suspicious., $s,UOOW
| Expense
Rent, fuel, insurance, taxes, ETC.. $1,000
| Clerk hiFe-One chief and two as
| slstAnCS. CS..........s....sss.s... 2,UDO
Freight, drayage, etc ...."...... 1GO
| Interest at per cent. on capital 24O
$4,000 1900 90
Net annual profit. ........... 100000
Thus 1t is seen that 1855 heads Of fami-
lies spending $3.50 each in the run Of
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 preposterous or
unreasonable than the figures given in
TIE ADVOCATE by "An Alliance Mem
ber," to illustrate the workings Of the
National Union plan. There Is simply q
difference In the way the profits are d.
vided and the disposition made Of the
advantages connected with the co-opera-
tive features of the two plans. No one
will deny that for cash, one establish
ment may buy just as cheaply from first
hands, as the other
Under the National Union plan, the
corporation, or company, would get of
the $4,000 profits above set forth, the
sum Of $2,66666, or 66% per cent inter
est upon the working capital of $4,000,
while the store manager and customers
get each $66666. 1t matters not how
many heads OF families compose the Co
operative association or what sum their
annual purchases average, II may be 1866
shareholders, averaging annual pur-
chases OF $3.50 each, or 400 averaging 800
each. Nor does 1t matter how unequally
the stock may be held or divided. The
principle governing the case Is clear and
explicit. The capital stock subscribed
Is entitled to the legal current rate Of an
nusl interest, no less, certainly no more.
AS "proft" an individual storekeeper Is
entitled to enough money, after paying
all expenses, to pay him q fair salary;
comfortable decent living. Now, for fear
some may say that 25 per cent Is too
large a gross average prolific count upon,
we will reduce the profit upon the 100000
annual sales to $5,OOO-which Is but
l42S per cent. prO6t-lesving the ex-
penses as before, and we yet have 81, 900