The daily morning oasis., 1920-08-29
COOPERATIVE STORES AGAIN

Recently "The Oosis" presented an editorial Civ
ing data with regard to development of cooperative
stores in the region west of the Missouri and Mis-
sissipppi rivers tlat very interesting from the
magnitude assumed by the system, and it's wonder
full growth At that time it was necessary 10 lini
the article to general sketch, while description of
operation and details left necessarily for another
article, which will be this one
lin the Of Farmers Union stores localun-
ions organize ana operate the local enterprise,
whether as store or whatever line of activity is
chosen. In operation of the business the local
union is its supreme authority 1t may turn to the
state union for advice for auditing it's books for
insurance or for other SERVICE but for success fail
of its commercial undertaking the local un-
ion is alone responsible. It starts with capital
large small it fit to provide; itbuys and
sells as it deems best engages and businesses its
employees and conducts it general affairs with
out dictation from anyone 1t may elect to operate
produce station and market only produce of its
members such as butter eggs, vegetables, meats and
other farm out put; or it may go into cooperation
on larger scalesand operate general retail store
or grain elevator and in addition to handling grain
It may deal in flour feed SALT COAL canned goods etc.
purchased in carload lots and distributed among
shareholders; or with neighbor unions in a county
It may establish county unit, operate several retail
stores a half dozen elevators and several produce
stations scattered throughout the county.
Whatever line of business a unit undertakes
methods of organization and management virtual
~ standard Say the enterprise is to b. a general
store; depending upon the trade district served the
capital may range from $4,000 to $4,000, o. even
more. Shareholders not limited in number; but
the number of shares any one Individual may take
is The object is to prevent person from
ing control
A state charter is secured and stock subecrip-
tons taken. The shares are priced lows 90 or
$1,000 With sufficient shares subscribed and paid
i'm a of 8
IS opened
The purpose of the "co-opstore' is elimination of
retail profit. The method is to sell sharehoding
customers Notwithstanding patrons do not share in
such benefits) commodities al prices sufficiently
higher than cost price to expense of handling
plus fixed divide,d uoon shares agreed in advance
It is found not possible however to establish thai
cost paying margin each time sale is made Ac-
cor,ngly pr .ctice is to fix prices to meet ali op
Grating cost With share dividends and p oV-.o G
surplus which may be divided among shareholders
or NAV 90 to expansion of the stock of goods:
It is in the division Of that surplus Tat
, the shareholder fares better than the nom
shareholding patron. The latter gets no
plus the shareholder has to tradc at the Coop His
shares cut no figure He is given dividend from
surplus upon the purchase he has made. Say the
surplus is 10 per cent of the gross business DONE
shareholder gets dividend of 10 per cent the val
lie of goods he hes bought during the year. share
holder with one share par value SIS, buying $500 IN
goods would get dividend of $50, where one with
500 IN shares buying $500 worth, would get but SO
as his dividend from the surplus. With dividend
of per cent shares the larger shareholder would
get 81 from that source, while the other would get
but 40 cents. The non-sharehoider would get moth
ing from either fund, even though his purchases
reached 81 900 or more. His trade goes there be-
cause 1t is re convenient to do so, for other
valid reasons
Except for differences in DETAILS "co-ops con-
Quoted by labor unions and independents are organ