42 Wisco7}sin Academy of Sciences, Arts, and Letters. 



A variety of this case is where the capitalist is a corporation, as 

 in the case of a railway company, an insurance company, a na- 

 tional bank, a city newspaper or a manufacturing company. In 

 this case interest and prorits combined appear as divi lend. In a 

 large corporation there are often several business managers, each 

 with h^s department of the business. Very generally the manag- 

 ers are also ?t(Jck-holders, and receive dividends in that capacity 

 as wtll as salaries as managers. 



The quf'stious raised by the subject of stock companies and 

 their dividends, are important questions in Distribution. But they 

 call for a separate treatment, and are omitted in this paper. 



Another variety of this case is when a number of persons are 

 ■associated so carry on a co-operative store. Usually the capital 

 of each partner is quite small ; but for the purpose of carrying on 

 the co-operative store they are capitalists, even if they earn their 

 liy ng as laborers. They simply club together their individual 

 savii gs, so as to make a mercantile association, and then employ 

 a manager and clerks, and se'l to one another and to outsiders on 

 su h terms as they choose to offer. In England these co-operative 

 stores have been quite successful. 



CASE lY. 



In this case the manager carries on the business, borrowing 

 money or goods of the capitalist or renting land or buildings of 

 him and employing laborers. In this case the distribution is, to 

 the capitalist interest or rent, to the laborer wages, and to the 

 manager salary for his services and the net profits (or losses.) It 

 should be noted that the case is very rare where the business 

 mana<;er can borrow money, buy goods on credit or rent land 

 without capital of his own as a basis of confidence. On that 

 capital he should also have interest. 



The best example of this case perhaps is the system of agricul- 

 ture in England. There the capitalist is the landlord, who rents 

 land for a term of years, generally now for twenty-one 3'ears, un- 

 der definite conditions in regard to crops and improvempnts, and 

 for a fixed rent in money. The business manager is the farmer, 

 who receives salary for his services, interest on the capital he 

 invests in the shape of stock, tools, improvements on the land 



