Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1932-01-28
ASKOV COOP. FIRM
VIEWS 1881 BUSINESS


Cooperative association was held yes
terday afternoon in the d. B. S. hall
and drew an attendance of approx
imately fifty members.
The president of the organization
called the meeting to order and Sec
rotary Ludwig Madsen read the min
utes from the last annual meeting as
we'll as all the regular board meetings
during the year. In the absence OF
the treasurer, Jens Arnbal, the secre-
tary also read his report. All reports
had been revised and found correct
by the revisers, Martin Isaksen
and T. N. Thomson, and were duly ap-
proved by the meeting.
For the first time in the history of
the organization the annual statement
showed an actual loss. The profit and
loss statement showed a loss of
S1S1.71, which really is so small that
il hardly deserves mention. One rea-
son for the loss is that the bylaws of
the company states that $50 must be
paid on all shares of stock. This item
company paid the shareholders only
what actual profit there was each year
then there would have been profit of
the difference between these two fig
ures or S450.64, and that can surely be
considered 6 oil under the present bust
ness conditions. Another item that
speaks we'll for the management of
the business is that their outstanding
accounts have been reduced approx
mately $500 during the year. How
ever, the outstanding accounts are
still much too large for the amount
of business transacted, same being
1,S11.21 in addition to which there
are S1,176.27 in notes receivable.
These two items constitute more than
half a years gross business. But it
must be remembered that these ac-
counts were created in the days when
it was not so vital as to whether or
not a customer paid his bills right
away.
The total sales for the year amount
ed to S24 ,261.19 in the feed store divi-
sion and $4,000 for grinding, a con-
siderable slump from last year, yet
not more of a slump than the average
businesses throughout the country
have been obliged to take. And in as
much as it is almost impossible to re-
duce the overhead expense, the only
which very likely will be the aim of
the board elected. The two big non
productive overhead expense items are
insurance and taxes, S570.4S, and in
terest on money borrowed, $467.75.
The secretary's salary, treasurer's
for the whole year amounts to only
S195, so it is not the officers that are
getting the profits that there should
be.
There was considerable discussion
as to possible means for reducing ex-
pepses. In this it was brought out
that it was too much to list $4,000 as
moneys and credits in the personal
property tax list. Even though the
company has book assets at over $12,-
900 in accounts and notes receivable,
it was urged that the figure be set at
much less than $4,000 as the law does
not require the listing of doubtful &C
counts and it was thought that a
large part of them ought to be in that
column. The meeting decided to
charge off 1O% of their book value for
depreciation. The value as listed in
the statement for building and equip
ment is S7,956.S5; thus 1910 deprecia-
ton will lower it $795.6S This sum
will have to be deducted from the re-
serve fund of S7,26S, as well as the
loss for the year after the undivided
profit from last year of $3S0.62 has
been transferred to that fund. The
board was instructed to investigate
the cost of constructing fire walls and
the possible reduction in insurance
rates. Several items concerning pos
sible reductions in expenditures were
discussed; such as elimination of the
80 discount for cash, reduction in the
managers salary, and were upon mo-
lions carried left to the new board to
decide.
Election of officers resulted in the
reelection of four of the present board
members, namely: A. P. Jensen, presi-
dent Adolf Jensen, vice president;
Ludwig Madsen, secretary; and Einar
Jensen, director. The treasurer, Jens
Arnbal, is retiring as he is moving
away and in his place Chris. Fred
eriksen was elected. The old timers,
Martin Isaksen and T. N. Thomson
were elected revisers by reclamation.
Everyone enjoyed a cup of coffee
and lunch served by T. w. Hansen
after the meeting.