MARKET METHODS AND PROBLEMS 



547 



be a profit, and hence the patronage dividend is a desirable feature. 

 Out of 139 companies reporting dividends paid on stock, 59, or 42.4 

 per cent, paid no dividends, 14 . 2 paid rates from 2 to 7 per cent, 

 30.9 per cent paid at the rate of either 8 or 10 per cent, and only 

 12.7 per cent of the total number paid rates above 10 per cent. 

 Although several of the companies which paid no dividends actually 

 lost money, most of them had small profits which were thrown into 

 reserves. Of those that paid dividends, 10 per cent was the com- 

 monest rate. Out of the 42 elevators that have the patronage 

 dividend, 16 pay stock dividends or 10 per cent before distributing 

 anything on a patronage basis, and 13 pay 8 per cent. In other words, 

 8 or 10 per cent is apparently considered a fair return on capital 

 invested. The highest rate of dividends paid by any elevator was 

 125 per cent, but this elevator has since changed to the patronage 

 basis. 



The majority of farmers' elevators undertake the co-operative 

 purchase of supplies, such as coal, flour, feed, binder twine, seeds, etc., 

 for their patrons. 



The most important recent development in co-operative marketing 

 in Minnesota is the formation of live-stock shipping associations, and 

 in this respect also Minnesota is by far the leading state in the country. 

 The movement began in 1908 and has been spreading very rapidly, 

 especially since 1911. The number of associations is placed at 115 

 on January i, 1914, but many have been organized since that date. 

 The total value of live-stock marketing through these associations can 

 only be estimated. The average for 61 associations in 1913 was 

 $59,692 per association, but many of these associations had been 

 formed during the year and hence their reports cover less than, twelve 

 months. The estimated figure of $6,000,000 would seem to be fairly 

 conservative. This amounts to about 12 per cent of the value of 

 live-stock marketed by Minnesota farmers. 



