Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1919-04-26
Saltwater Community
Market Company Shows
Cooperative Methods
Remarkable Enterprise in Minnesota Arouses Much interest hee.pnee
Of tho Success with which Farmers and Townspeople Work
- Together. >.-. = =. .~N, % >&& ~

, This cordial community feeling IL
the basis upon which the business has
been built. The underlying ide4 -
reduced to q very simple proposition
by Judge Wilson, who recently speak
irigsat MAnkAto, Mimi, said:
ton Of whether three hundred men
in q community will do what three
men could do. Three men could orr
eanize such q corporation and con-
troll the profits. we can organise .
corporation with three hundred
stockholders, and instead Of outside
buyers coming in and making the
profits out Of the community, every
dollar ofsspront will so.to the home
people, and the money remains In p
community"
Management Of the Market.
According to the laws Of the OF.
G~ani3ation, the management vested
in 4 board Of nine directors, known
a. the board Of managers, who arc
elected by the stockholders At the
annual meeting.
Characteristic Of the methods OF
tie cotnpanyNA the way in which the
Of the surplus or undivided earnings
which amounted to $4,000 on a capi-
tai investment of 100000, The ordi-
nary course of business, 1t was said,
would have been. to divide the earn
ings among the present stockholders
before inviting any new stockholders
or raising the price Of stock to cor
respond TO the real value az related
to the surplus. ( :
But the acknowledgements some ap-
pointed executive o~ncials-voted that
the profts should be distributed as
follows:
/. Interest or dividend to stock
holders on capital stock not to ex-
coed legal interest. We,
e. The making ola permanent re-
serve fund not to be distributed until
the company (Which is Incorporated
only for Afperiod Of 20 years.. This
fund Is to- be considered a. IN in!
sura11ce for the value of the capital
stock and all credit at the bank, and
also to furnish means for the extern
sion or enlargement Of the company's
business, and the Improvement Of its
plants. nv
8. Patronage dividends should be.
given to tho patrons Of the company
in a direct ratio to the volume Of
business carried on by the company
and the individual patron in the mar
kstinR. Of farm products.
Some Interesting Facts. -.
In consequence Of the decision
made by the stockholders, the follow
Ing facts were published in the
Monthly Bulletin Of the company;
they. speak for themselves:
"Whcn a man starts a store, q
bank or a market the first question
is: How much money have you got
to do business with? How much
money do you need? The answer ID
obvious. 1t. will. depend entirely upon
how much business you have 10 do.
When the market began ten years
4so, It had no business ana no money.
It began tho work Of raising money
and creating business. Both Develop
ed together. Money was obtained by
selling capital stock and borrowing II
the, bank. At the end Of ten years
the business had grown 50 big that It
ness. ' Money was derived from the
sale Of stock in the amount OF $l0,.s
900; from loans at the bank 324,0000..ss
BY turning it over and over this
money was made to take care iof.
$dS0.000 Of business. Residn the
money that has been obtained from
selling stock and borrowed at Nthe
bank. $4,000 more was obtained
from the earnings Of business. This
constitutes what we know as the re
serve Or contingent fund. It IA the In
worth every dorisr that was paid in
by the stockholders and It always
gives credit at the bank.
The articlesr OF incorporation nAr-
nit q sale Of $4,000 worth Of stock.
The growth of business makes r. ne
Icessary to sell this stock. Wlth|tz0,.
900 surplus, 1t is a thousand miles
froi, any blue sky. stock ~aellin1