283] THE PRODUCTION OF BUTTER cq 



the United States. The amount of capital necessary to 

 erect buildings and equip them properly was secured by the 

 issue of stock. The stock was divided into small shares of 

 $25 each and distributed chiefly among the prospective 

 patrons of the factory with a view to create a general in- 

 terest in the success of the establishment. A dividend of 

 6 per cent was guaranteed to the shareholder. The stock- 

 holders elected five directors, who were charged with the 

 management of the factory. The directors elected one of 

 their number as president and another as superintendent 

 and treasurer. 1 A butter-maker was employed to make the 

 butter at 3^2 cents per pound. The butter-maker in this 

 case assumed all expenses, including the interest on the 

 stock. In other cases the butter-maker was given a salary. 

 The net earnings, after paying all expenses, including the 

 salary, interest on the stock, and in some cases a deprecia- 

 tion charge sufficient to replace equipment, were appor- 

 tioned among the patrons according to the amount of 

 cream furnished. In the earlier factories the raw material 

 was in the form of milk, and the division of the earnings 

 was therefore on the basis of milk furnished. 



This type of cooperative creamery has in many instances 

 continued to the present. James Ford 2 says concerning 

 the Hampton Cooperative Creamery Association of East 

 Hampton, Massachusetts, founded in 1881, that "in 1911 

 it had 43 shareholders who held $2,500 of capital stock in 

 twenty-five-dollar shares. They own $3,000 worth of real 

 estate free from mortgage and have a reserve of $4,623. 

 Sales for the year 19 10 amounted to $86,914, from the 

 profits of which 6 per cent interest on shares was paid to 



1 This organization was similar to that of the early cheese factories. 

 Vide, Report of the Transactions of the N. Y. State Agricultural Soci- 

 ety for 1863, p. 197. 



3 James Ford, Cooperation in New England, p. 138. 



