84 Cooperation in Agriculture 



companies, the stockholders are sometimes paid a dividend 

 of 100 per cent. In some of the fruit-distributing organi- 

 zations, the stockholders have been paid dividends of 

 10, 20, 30, or even 50 per cent on the capital stock. In 

 others which combine some of the cooperative features, 

 they pay to the non-stockholders who ship through the 

 organization one-half or one-third as much, more or less, 

 as the stock dividends ; or the distribution of the surplus 

 earnings may be made in other ways. 



In one fruit-distributing organization that is formed as 

 a stock corporation, but which shares some of the earn- 

 ings with the non-stockholders and operates partly on 

 the cooperative plan, the shipper is charged 7 per cent 

 on the gross proceeds for operating expenses. It is pro- 

 vided that ' the capital stock shall be paid a 6 per cent 

 dividend, that a reserve fund shall be accumulated, and if 

 a further amount is available for distribution, it shall be 

 divided as follows : " 75 per cent amongst all growers or 

 growers' organizations who have signed contracts and 

 shipped consistently with this exchange during the sea- 

 son when this dividend has been earned, based propor- 

 tionally on the gross amount realized by the fruit of such 

 shippers ; and 25 per cent to be a further dividend on 

 paid-up stock." It is also provided that no stockholder 

 shall hold more than ten shares of stock, or a total of one 

 thousand dollars. This organization has been one of the 

 most successful of the stock corporations which operate 

 partly on cooperative principles. 



The trouble that arises over the payment of dividends 

 is usually with the members who hold a small amount 

 of stock, and with those who utilize the marketing facili- 



