UNITED STATES - CO-OPERATION AND ASSOCIATION 



those which deal chiefly with products easih' handled. The skill of indivi- 

 dual managers also of course accounts for much. 



Tabee III. Relation of Operating Expenses to Gross Receipts. 



Classification 

 (according to gross receipts) 



Number of 



elevators 



in each 



class 



Percentage of operating 

 expenses to gross receipts 



Maximum i Minimum | Average 



$ 10,000 - 50,000 



50,000 - 75,000 



75,000 — 100,000 



100,000 - 125,000 



125,000 - 150,000 



150,000 - 175,000 



175,000 - 200,000 



200,000 - 225,000 



225,000 - 250,000 



250,000 - 275,000 



275,000 and over 



All classes 



15 

 27 



30 

 24 

 26 



13 

 9 

 6 

 6 

 5 

 5 



166 



16.2 

 9.6 

 7.0 

 50 

 3-8 

 3-5 

 2.9 

 3-4 

 2.7 

 2.7 

 3-3 



16.2 



5.3 

 3-t> 

 3.3 

 2.7 

 2.2 

 2.0 

 2.1 

 2.2 

 2.1 

 2.0 

 1.6 



2.6 



e) Profits. — Profits as such — an excess of total income over total 

 outgoings — are not necessarily desirable for a co-operative organization. 

 The object of a strictly co-operative marketing business is to enable the co- 

 operators to obtain the highest possible amount for the goods they market ; 

 and whether this is accomplished by paying them directly the whole price 

 obtained, less expenses, or by retaining a share of such price for subsequent 

 distribution in the form of dividends, is immaterial. It is the practice of 

 the co-operative creameries to pay for butter-fat the whole current price 

 at which the butter sells, less actual working costs, so that at the end of the 

 year little or no profit remains to be divided. 



Such a policy is however scarcely practicable in the case of the co- 

 operative marketing of grain, particularly because of the considerable and 

 rapid fluctuations of the price of grain which often take place, and the con- 

 siderable occasional variations in working expenses which are due to the 

 varying volume of business. It is desirable that the co-operative elevators 

 should retain, after paying suppliers of grain and immediate working 

 expenses, a margin of receipts. This serves as a safety fund. 



As a matter of fact, not all the farmers' elevators are strictly co-opera- 



