The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1914-08-22

penses and setting aside the usual re-
serve to cover depreciation, and for
expansion of the business.
The theory of profit it-making" in
associations of consumers has been
vividly explained by prominent
English leader in the cooperative
movement in the following manner:
"A number Of men and women
combine and start a co-operative
store, agreeing for reasons of con-
venience to sell their goods to one
another at the ordinary shop-keep-
er's prices. and divide the surplus later
In proportion to their purchases un-
der the name of dividend. They save
the retailers profit and obtain their
goods at what they would have cost
the shop-keeper. plus the expense Of
distributions; they save the surplus
Dut they make no commercial profit.
II number Of stores combine to-
gether to establish a wholesale agency
for purchasing directly from the man.
ufacturer or producer, they save all
middle profits but make no profits for
themselves. The net result is the
same as if they sold their goods at
once at cost price,"
In oil Rochdale cooperative stores
what we usually call profits" are
treated as surplus and are divided
pro rata upon the amount of pur-
chases made by each member. In
getting back this surplus he simply
gets back the overplus he paid in
when he made purchases and as the
surplus Is what Is left after satisfying
capital by paying it's legal hire and
after paying rents, clerk hire and
expenses incurred 1T represents an
overplus that properly belongs to
those who paid 1t in.
Profit in the economic sense of
"a pecuniary gain" accruing from
commercial transactions between two
persons, cannot exist in consumers
cooperation. wherein buyer and seller
are practically one person. The de-
vice. which Is the distinguishing fea-
ture OF the ROchdale system of
charging retail prices current in the
ordinary markets and returning the
margin upon cost-"the fund COM
monty known as proft"-to those
VINO had paid 1t in purchasing the
goods, has been found equitable,
sound and practical. Something over
$50 stores in Minnesota have been es-
tablished under the English Rochdale
plan. with slight notifications, by
the Right Relations League. The
profits" are divided on patronage
and all purchases are included expect
the things that are sold for less than
3 per cent gross. Unless the goods
sold carry price that amounts to as
much as per cent above cost the
tickets for such goods are marked
met" and do not carry any patronage
dividend. Where competition is
sharp on certain staple goods it is
important that a provision be- made
similar to this. for it would be unwise
and unjust to include in patronage
dividends goods that are sold prac-
tically at cost. and 1 am glad to note
here that some of the Farmers I'm
ion enterprises that are operating on
the Rochdale plan in North Carolina
have embodied in their bylaws q fea-
ture for marking their purchase tick
cts met" for goods that do not carry
as much as per cent gross above
cost.
In building the cooperative struc-
ture the most important. and yet the
most difficult side to deal with Is the
human side. While many Of the dis
tributive enterprises promoted
through the influence of the Farm
ers' Union arc simply joint stock
companies depending upon the union
sentiment for patronage. we have
f"iSS companies OF dSSO-
Citations that have embodied the
Rochdale feature in their bylaws
and others are making this amend
ment. On this basis the true cooper
ative seed has been planted and its
growth will be limited only by the
human action Of the individual units.
TX each human being that processes
loyalty will consider that his trade or
patronage Is the most important as
set that he possesses he will be care
full how he invests It, We are going
to invest this tangible and valuable
asset either In our own cooperative
business. which will return the sur
plus to those who make the invest
ment. or we are going to donate it to
some private profit-taking agency
that keeps all the results Of our pa