The daily sentinel., 1910-06-22

ness can be improved by the intelli-
gent cooperation of capital and pa
tronage proceeding along conserva-
tive business lines.
Until recently the efforts of its
members have been confined to local
companies and while each of them,
has been generally successful from a
financial standpoint they are, as local
concerns, subject to the same environ
ments that surround any small bust
ness institution.
Realizing the limitations of local
enterprises these two organizations
in Colorado have perfected plans for
great store system and are now en-
gagged in putting in chain of stores
throughout the agricultural sections
of the state where the membership
warrants and the necessary capital
and patronage can be secured to in
sure successful operation.
The plan was perfected aud en-
dorsed by the Farmers Union of the
state in state convention September,
1903, and the Union Trading Co. was
incorporated in obedience 10 the wish
and command of these organizations.
The Union Trading company is in
corporated under the laws of Colo
RADIO with capital stock of 100000
all of which was placed in the treas
ury to be sold at par Shares are
500 each full paid and non-asses-
able. In ordinary corporations all
profits go to stockholders and the
directors control the disposition of
the profits and the manner of such
disposition can be changed by them
with consent of stockholders: but in
tine Union Trading company the divis-
ion of profits has been made part
of the Incorporation paDers and can
never be changed by either stock hold
ers or directors
The entire capital stock has been
placed in the treasury of the COM
pany and is sold to members at par
Any member is privileged to purchase
as many shares as he desires and the
stock is transferable same as any 9th
er personal property. In annual
stockholders meetings each share has
one vote. but cumulative voting is
prohibited. The company is under
the control of a board of five direc-
tors chosen annually and all the
stores are under one general manage
ment.
al tHplbNfS are ltuuiltu 10 give
bonds in some approved surety COM
pany.
The company will establish stores
throughout the agricultural districts
of the state, thus securing the bene-
fits of large quantity purchases and
carload rates of freight This will
insure the lowest possible cost of
merchandise and hence the ability to
successfully meet any competition,
All goods will be sold at the cur
rent retail market price and the same
rule applies to produce purchased by
the stores Of the system. The cur
rent market prices will be maintained
and. as consequence, no disturb
ance in business circles will result
Any member who has not purchas-
ed stock for cash is required to sub
scribe for at least one share to be
paid for out of the dividends accru-
ing TO him on his patronage, buying
the stock with the profits which are
lost TO him. under the present sys-
TEN. When the dividends on his pa
tronage amount to Sl00 he will re-
ceive one share of stock and there
after participate in both the stock
and patronage dividends.
Under this plan every member viii
eventually become stockholder.
These shares paid for with patronage
dividends insure a constant increase
in the number of Union stockholders
and makes ii impossible for any man
or group of men to control the stock. 1
The business of the company Will
be strictly cash. If patron member
needs accommodation for a time he
places his negotiable note with the
at per cent interest for the
of accommodation desired
and receives therefor an equal
amount of Union Trading company
scrip which is redeemable in mer-
chandist at any store in the system.
This places the business on a cash
basis and every patron member on an
equal footing.