AFFILIATED ORGANIZATIONS 193 



The original authorized capital of the Supply Company 

 was $1,000,000. But the stipulated contributions of the 

 associations which agreed to go into the new venture finally 

 exceeded the authorized capital. As more capital could 

 be profitably employed the capitalization was recently in- 

 creased to $1,500,000. Of the associations which are mem- 

 bers of the exchange system all but seven have joined the 

 Supply Company, and receive its benefits. Also about seven 

 non-exchange shippers have been permitted to take stock. 

 A dividend of 6 per cent, on the capital is provided for, 

 and this money is distributed among the associations accord- 

 ing to stock holdings. Within the associations each mem- 

 ber is credited on the books of the association with Supply 

 Company stock in proportion to the number of boxes of 

 fruit he has shipped from which a deduction has been made 

 to furnish funds for the Supply Company. 



For example, if some grower furnished 5,000 packed 

 boxes, and the assessment for Supply Company stock for 

 that year was three cents a box, that grower would be 

 credited with owning fifteen shares of Supply Company 

 stock and would be paid his regular dividend on that basis. 

 When dividends on stock have been paid, all surplus moneys 

 beyond a small amount usually set aside for contingencies 

 are refunded to the associations in proportion to the busi- 

 ness transacted with the company. The refund to the asso- 

 ciations on packing house supplies is often credited to 

 general packing expenses, but the refund on orchard ma- 

 terials is now very frequently, and should be, distributed 

 only among members who have patronized the company, 

 and in proportion to the size of their orders. Formerly 

 this refund was distributed among members according to 

 stock ownership. 



That the Supply Company is an important element in 

 the citrus growers' cooperative system is evidenced by the 



