26 BULLETIN 394, U. S. DEPARTMENT OP AGEICULTTJRE. 



Average rate of operating expenses on sales (33 stores) per cent 11. 7 



Average produce bought (estimated) (22 stores) $12,126.08 



A^verage annual cost of audit (15 stores) $56.00 



Manager's average monthly salary (42 stores) $106.00 



Salesmen's average monthly salary (81 stores) $50.00 



Saleswomen's average monthly salary (26 stores) , $32.00 



OBSERVATIONS AND CONCLUSIONS. 



The figures collected in this survey bring the conclusion that the 

 majority of the cooperative stores established are unsuccessful in 

 achieving their main object — saving on purchases to members and 

 a reduction of the high cost of living. This conclusion is borne out 

 by the supplementary notes collected from managers who could not 

 apply statistics, and by notes on interviev\;^s with leaders who are 

 acquainted with the store movement in whole sections which could 

 not be covered in detail. But that there is one real service which 

 the cooperative stores have performed seems to have been demon- 

 strated again and again. Even in cases where stores have failed 

 absolutely and gone into bankruptcy, they have frequently been 

 I'esponsible for the introduction of improved business methods in 

 the towns where they were established. They have had the effect 

 of stimulating competition. In cases where the merchants have 

 competed keenly against the cooperative store, they have been com- 

 pelled to adopt more efficient business methods. This has resulted 

 in lower prices to every consumer in the locality and frequently in 

 better prices to farmers on produce. 



In the case of one particular farmers' store, it was estimated that 

 the farmers of the locality received an increase on their butter, eggs, 

 and poultry in one year which would have amounted to more than 

 the entire paid-in capital stock of the cooperative store. This gain 

 went to every farmer in the community regardless of whether or 

 not he was a member of the cooperative association. 



Table XII. — General comments. 



Is the business in satisfactory con- 

 dition (manager's opinion) 32 yes; 15 fair; 1 no. 



Has the business been reorganized 6 yes ; 37 no. 



Expansion planned 12 yes ; 30 no. 



Educational propaganda 12 yes; 30 no. 



Probable future (manager's opinion )_.Bright, 20; good, 11; fair, 3; doubtful, 



12 ; not good, 3. 



Cooperation with other merchants 8 yes; 33 no. 



Are employees members? 9 yes; 24 no. 



How do expenses compare with private 

 business in town? 4 higher; 12 same; 11 lower. 



