Greenbelt cooperator. (Greenbelt, Md.) 1937-1954, 1940-02-15
CONSUMERS VOTE DIVIDENDS
ON 1899 PURCHASES

Greenbe1t Consumer Services, will pay patronage
return on 1889 purchases credit toward shares
capital stock in the organization. This the
mand given the board BY the stockholders at their
first annual meeting February 7.
The matter of paying the s., 900 patronage return
was brought before the membership by Sherrod E.East,
vice-presddt, who presented the boards recommend
alton that the payment be made. As cleaned from the
lengthy debate on the question: the opposition to
main points follows:
First, that the organization, while it showed
savings Of $500 for the year 1899, had not wiped
out the deficit which occurred during the first
and a half of operation; second, that the boards
accommodation provided that patrons who had not
purchased shares in the coopera ve would share e.
qually vi tn members in the patronage return.
There were some objections to the setting up for
new asset-called "Ieasehold", with a value of
300, to be written off in eight years-which
wiped out the deficit and permitted the payment
the patronage return, leaving small surplus. It
was pointed out that this done with the approval
of several Certified Public Accountants.
The people of Greenbelt, 1t was pointed out, had
taken over for SIC, 900 business whose net assets
Jus titled price of about 900 but who earning
10000.
In order to reflect the fact that the business il
worth 1000, and in order to produce a surplus 80
that the organization could legally repurchase
shares of stock Of members leaving Greenbelt, the
directors authorized writing the asset mIeaseholdn
onto the books Of the corporation with value of
$500.
Accountants Justified the new asset on the ground
that 1t was in order to control of the stores
through control of the lease, that Greenbel Cd tzens
had accepted $4,000 obligation when net assets
we're only $32, 900.
Leasehold, it was stated, would be writ tan off
over the period Of the lease, and the deficit Of the
period Of operation would thereby be charged
off over the next light years and would be borne
entirely by the present stockholders.
1t was contended by those favoring the purchase
return that to considerable extent incr ease in
sales from 1898 to 1899 in part to the fact
that the patrons expected a patronage return and
that the $4,000 return could therefore properly
considered part of the cost Of those sales. The
bene fetal effect upon future business was also
pointed out.
Some members seemed to feel that lore patrons
who had not bought shares previously should be
credited with the proportion of the patronage
returns as present members. (The actual amount Of
credit toward shares Will depend upon the total
mount of the purchases made at the stores by any
member, or non-meber who has filled out appltca-
ton, as evidenced by the patronage slips he turns
in to the board of directors.)
Those who favored the payment of the patronage
return we're defini tely in the majority, shown by
the decisive vote upon this question. Non-members
Will share in the benefits accruing them by
tue of their trading at the Geenbelt If they
submit their applications and patronage slips by
$500 Pm. on Saturday, February H..