Saturday news. (Watertown, S.D.) 19??-19??, 1912-09-12
PROFIT sH KARIN q ON SHARE AND
s5553i BUSH e

PROFIT SHARING ON SHARE AND
susHE Z.
Z ~ w !. 4. Close, Manager
True cooperation exalts the man
above the dollar al cooperative
business must, OF course, earn money,
This Is absolutely essential but men
must be first and money second.
The true principle In d co-operativss
company is equality, one mans dollar
Is as good az another g, one mans
grain Is as good as another's, also his
hogs and cattle.
I have been approached ~ some of
the big farmers OF our companyswho
thought that, because they marketed
"a large amount OF grain, they ought
to receive from 1 to 2 cents per bushel
more for II than the man who mar.
keted q few hundred bushels, but /
have always felt In the right In stick
ing to the main principle 0f equality
IN everything pertaining to the bust
ness.
The essential feature Ia all coop;
!eratiye business Is the payment 81 a
comparatively small rate Of interest
on the capital invested and the distri-
button OF all surplus profits to the
members LII proportion to the number
of bushels delivered to the elevator
and the amount OF other business
transacted. i'll "a sSIs
You can readily see how this would
operate. BY paying q mod rate!
Of interest, we do not attract Idle cap
ttal on an Investment basis and by.
distributing the profits among the
stockhold ers; according to the num-
Der of bushels delivered and the
amount OF other business transacted,
the usual producers Of the wealth re-
ceive the benefits OF the business ere
ated by themselves. RI
BY this policy the members are en-
couraged to do all business possible
with their own house, and others are
induced, by their own business judg-
ment, to become members OF coop
erative company. 4
There are large number of farm.
ers' elevator companies being started,
which, though posing as cooperative
companies, are In reality, Joint stock
companies, pure and simple
You can step into a brokers' Office
In any Of our larger cities, and buy
railway stocks, packing house stock,
stock. The systems Of all these great
corporations are built up on the joint
stock plan, and have been successful
beyond the widest dreams OF their
originators. Il ss
It is not surprising, therefore, that
some organizers of farmers elevator
companies should adopt this same
plan for the conduct OF their bust.
ness. But in a strictly cooperative
sense, this is entirely wrong.
ny this system, a few men of means
are permitted to buy up a controlling
interest in the stock OF the company
and dictate as to Its management, and
by owning most OF the shares, to enjoy
the profits produced by the patrons
of the company, even though they did
not raise a bushel OF grain, or do one
dollars worth of business with the
company.
II Such a condition OF affairs cannot
and Will not exist Id any community
when the farmers become awakened
to the fact that they are being de-
priyed Of their earnings at both ends
of the game. ;si
The theory of cooperation Is COM
phcated; its practice, most simple.
1T does not consist OF big meetings,
in resolutions as to what ought to
be done, and in voting for a dozen
different things 1t consists merely
of a number Of people getting to.
getheT to transact the business ere.
ated by their own needs.
In order to 40 1t, they must furnish
the working capital and actually take
all their own business to their own
company, regardless Of the opinion
of others The trade OF the people
buying and selling. is their most val
liable possession. 1t is extremely
simple to go quietly ahead, and do
business with yourself and your
neighbors through your own cooper
alive company. With common, or
binary business sense, success is cer-
tain. Then why not do it. Isi
i thank you for your attention.
( The subject OF dividends on pat.
ronage secured the approval of the
most successful managers and COM
panies. Among them were ]. A. Me-
Govern of Madison, B. = I, Nase ofi
Colman, and E. W. Anderson Of w IL
low Lakes. They all approved the
principle dis the only truly co-opera.
tive one, though the form of organf.
cation prevented some from practic-
ing that method
CO. OPERATIVE III z Frat IRE As
Al SfIMptL ANT no LOYALTY.