FARMERS CO-OPERATIVE ELEVATORS IX MINNESOTA 



Table II. — Relation of Capital Stock to Gross Receipts. 



classification 

 (accordiug to gross receipts) 



Number 



of 

 elevators 



Percentage of capital stock 

 to gross receipts 



Maximum Minimum Average 



Less then S 50,000 . 



$ 50,000 to 100,000 

 100,000 to 150,000 

 150,000 to 200,000 



Over 200,000 . . . 



4.8 

 4.2 



2.3 

 2.1 

 2.6 



25.0 



5-8 

 4.8 

 31 

 4-7 



On an a\"erage the capital stock is equal to 5 per cert, of the gross 

 receipts. In few if any cases is the co-operative elevator fully financed by 

 the subscribed capital stock. Other sources, such as banks, individual 

 lenders and commission men, generally provide the greater part of the work- 

 ing capital, the capital stock being usually intended to cover the cost of 

 the plant and equipment. 



d) Gross Receipts and Operating Expenses. — It is interesting to com- 

 pare the ratio of operating expenses to gross receipts from all sources, for 

 the companies classified according to the volume of their business. This 

 is done in Table III on the basis of the reports for the year 1914-1915. 

 Figures sufficiently complete and accurate were available in the case of only 

 166 elevators, but their conditions are probably substantially representa- 

 tive of those of all the co-operative elevators. The}^ are classed in eleven 

 groups, according to the volume of their business as indicated by their gross 

 receipts. It will be seen that 107, the large majority, have gross re- 

 ceipts ranging from $50,000 to 8150,000 a year. The average gross 

 receipts of the 166 elevators amoant to §122,000. On an average operat- 

 ing expenses amount to 2.6 per cent, of gross receipts. While within each 

 class of elevators the ratio of expenses to receipts varies widely, in nearly 

 all cases the column shewing the highest ratio of operating expenses to 

 gross receipts indicates a fall in this ratio with each increase in the volume 

 of business. It will be noted that after the limit of S 150,000 of gross re- 

 ceipts has been passed there is no considerable change in this ratio until 

 the class of elevators having gross receipts in excess of % 275,000 is reached. 

 In other words, as the business increases from a very small to a moderate 

 size the ratio of expenses falls ra])idly, but with further increase in volume 

 it raturally becomes more difficult to effect tlie comparative reduction of 

 expenses. Volume is not the only element which effects the ratio of expenses. 

 The kind of busiiess done is also, doubtless, a factor of some importance. 

 Elevators wliich handle relatively more of the products necessitating consi- 

 derable expense will naturally hrve comparatively higher working costs than 



