THE CO-OPERATIVE OIl^MILLS IN DAI^MATIA 1:3 



owing to conditions unfavonrable to the harvest and the marketing of the 

 olives. Tt may be conduded that the amount of installation capital, which 

 we have estimated at 200 crowns a quintal, has been more than doubled in 

 the period in question and surpasses 400 crowns, which would represent an 

 important and lasting increase in the expense of producing the oil, an ope- 

 ration lasting from forty to fifty da^^s when it takes place in normal 

 conditions. It seems however as though the heavy burdens now incident 

 to the production of oil would give place to more favourable circimastances 

 in the near future, if the olive harvest would but return to a norrtial level. 



The costs of installation include in substance those incurred in acquir- 

 ing a site and buildings (real estate), as well as machines, implements and 

 other necessaries. 



All the thirteen co-operative societies except that of Banj possess 

 mechanical motor power. 



Most of the buildings have been specially erected for the production 

 of oil, or at least they have been bought and adapted to their new purpose. 

 In a few cases the communes have freely placed building land at the dispo- 

 sal of the promoters. It has happened that private individuals, themselves 

 producers of olives, and desirous of adhering to a co-operative society or 

 being among its founders, have seen in its formation an opportunity to 

 speculate with their land. They have in consequence given themselves 

 up to a blind propaganda in favour of its formation, without for an instant 

 asking themselves if it would supply a general need. 



The value of implements and machines is generally double that of real 

 estate, but this relation varies with the number of the machines. The co-oj^er- 

 ative society of Banj, which employs only manual labour, has implements 

 worth only half as much as its real estate. 



The thirteen co-operative oilmills are insured against fire with the Agram 

 co-operative insurance society called " Croatia " for a sum of about 700,000 

 crowns. 



§ 2. Grants and facilities for credit. 



The vState and the province make grants to the co-operative oilmills. 

 Hitherto the State has paid them 400,000 crowns and the province 60,000 

 crowns, the total sum thus granted being equal to half their installation 

 capital. The State's grant is in the form of annuities of from 2,000 to 5,000 

 crowns. As a general rule grants must be used for the amortization of 

 debts and entered on the credit side of the societies' balance-sheets. 



Two thirds of the vState's grant are used to amortize debts incurred at 

 the time of foundation ; the other third goes to the working funds and may be 

 used to cover working costs or meet a year's deficit. The same conditions 

 apply to the provincial grant. If in spite of the grants the year's brisiness 

 still show a deficit, advantage is taken of the relevant by-laws, which allow 



