CREAMERY ORGANIZATIONS 33 



sales expenses, and after deducting a fixed amount placed in 

 the sinking fund, which is needed to take care of current re- 

 pairs, etc., and paying a nominal dividend on the shares of 

 stock, as stipulated in the articles 'of incorporation, may be pro- 

 rated among all patrons on the basis of the pounds of butterfat 

 each patron delivered at the factory. 



Or, the board of directors may pay for the milk and cream 

 on the basis of some market quotation, and after deducting the 

 milk and cream checks and other expenses above enumerated 

 from the gross returns, it may then prorate dividends to all 

 patrons on the basis of the amount of butterfat sold to the 

 factory. 



The mutual co-operative creamery association has been a 

 very successful institution, in localities where the cow popula- 

 tion is dense and where the farmers are imbued with the co- 

 operative spirit. It has stimulated milk production by making 

 it more profitable, the co-operative service of the association has 

 often extended its useful offices beyond the making and selling 

 of butter, to the co-operative buying of feed, farm supplies 

 and machinery, and it has stimulated community interest and 

 general rural uplift. 



This form of creamery is not so well suited, however, in 

 localities where the co-operative spirit is lacking and where the 

 dairy herds are small, few and far between. * : 



The Joint Stock Company with Co-operative Features. 



Many, if not most of the so-called co-operative creameries are 

 not purely mutual co-operative creamery associations, but they 

 are joint stock companies with some co-operative features. To 

 this type of creamery companies also belong the promoters' 

 creameries. The joint stock company with co-operative features 

 differs from the mutual co-operative association, largely on the 

 following points: 



1. A stock holder need not be a patron of the creamery. 



2. The capital stock is divided into equal shares. 



3. The members of the association usually cast one vote 



for each share of stock held. 

 While it is usually intended to have the patrons own the 



