United labor bulletin., 1910-11-17

the profits and the manner of such dis
position can be changed by them with
consent of stockholders; but In the
Union Trading company the division of
profits has been made part of the in
corporation papers and can never be
changed by either stockholders or direc-
tors. The charter provides as follows:
The business OF said company shall
be conducted on the following co-opera-
tive profit-sharing PLAN to-wit: The
stockholders in this company shall re-
ceive 40 per cent. Of the net earnings.
in dividends on the paid-up capital stock.
The patrons of said company who are
members in good standing of the Farm
ers' Educational and Cooperative union,
or the Knights of Industry Of America,
shall receive 40 per cent. of the net
earnings in dividends on their cash pat
ronage, said dividends to be pro-rated
among members of said organizations
only, in proportion to the amount OF said
patronage; 20 per cent. OF the net earn
ings shall be placed in a reserve fund.
and used for the benefit OF the company
in such manner as may be determined
by the board of directors
The entire capital stock has been
placed in the treasury of the company
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 other per-
sonal 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 directors chosen annually, and
| all the stores are under one general
\ management.
| All employees are required to give
bonds in some approved surety company.
Buying Power.
The company will establish stores
throughout the agricultural districts of
the state. thus securing the benefits OF
large quantity purchases and carload
rates OF freight. This will insure the
i lowest possible cost OF merchandise and
any competition.
No Cutting Of Prices.
retail market price and the same rule
applies to produce purchased by the
| stores of the system. The current mar
ket prices will be maintained and. as a
consequence, no disturbance in business
circles win result.
All Members Must Eventually Become
Owners.
ANY member who has not purchased
stock for cash is required TO subscribe
for at least one share, TO be paid for out
OF the dividends accruins to him on his
patronage, buying the stock with the
profits which are lost to him, under the
present system. When the dividends on
his patronage amount to 500 he will
receive one share of stock and there
| 81. a
patronage dividends.
Stock Can Never Be cornered.
| Under the plan every member will
, eventually become a stockholder. These
shares paid for with patronage dividends
| insure a constant increase In the num-
impossible for any man or group of men
to control the stock.
No Open Accounts At the Store.
The business of the company viii be
strictly cash. II a patron member needs
accommodation for a tine he places his
negotiable note with the company at s
per cent. interest for the amount OF ac-
commodation desired of Union Trading
company scrip. which IL redeemable in
merchandise at any store in the system.
This places the business on a cash basis
and every patron member on an equal
footing.
This Store System VIII
1st. Furnish a direct market for our
crops.
End. Reduce the price OF our goods
by enabling the patrons to share in the
profits.
3rd. Furnish safe and profitable in
vestment for our savings.