THE FRUIT EXCHANGES. 



221 



usual place. The ultimate result of the deliberations of 

 that meeting was the re-organization of the Fruit Grow- 

 ers' Union, under the co-operative law of the State of 

 New Jersey, with a capital limited to Jso.ooo, and 

 a paid-up capital of |2,8oo. Every dollar of this 

 capital had been previously earned by the operations of 

 the Union. The organization was put at once on a work- 

 ing basis, and no member was required to subscribe one 

 cent. 



"Land having been purchased, and a warehouse 

 erected, the new enterprise was inaugurated by the 

 purchase and sale of the more bulky articles of merchan- 

 dise, coal, feed, etc., in which a fair amount of business 

 was done within the short time prior to our last annual 

 meeting, a full report of which was made on that occa- 

 sion by our secretary. 



"For the first year, the method of conducting the 

 business was by a purchasing committee for buying 

 goods, and a salesman in the store, which was kept open 

 but a limited number of hours. The business soon out- 

 grew this method, and your officers found that it was 

 necessary to employ a general superintendent, who. 

 under the supervision of your board of directors, 

 should have full control of the buying and selling of goods. 



"How much capital is required to conduct our 

 business is a question which annually arises, the settle- 

 ment of which determines the mode of paying dividends 

 in the fruit department which owns the plant. This 

 question was seriously discussed last year, and with a 

 full understanding of the situation the majority of the 

 board were of the opinion that our capital ought to be 

 increased by the amount of the year's earnings, and 

 stock covering that sum was issued. This has furnished 

 capital sufficient to conduct our business without em- 

 barrassment, and enabled us this year to make a cash 

 dividend, which may be continued unless we increase 

 our plant. But an addition to our store I think is abso- 

 lutely necessary, as our business should no longer be 

 subjected to the inconvenience entailed by our present 

 lack of accommodation. If this addition is made, stock 

 should be issued to cover the cost if necessary. 



' ' In the very nature of things no individual store rests 

 on as firm a foundation as ours, nor can it be as safe as 

 one whose capital is created and held as ours is. No 

 management can be more conservative and prudent than 

 ours has been, and the result has been gratifying. We 

 have been well rewarded. Our system is so excellent 

 that we cannot get far astray in our business. Bills of 

 all merchandise purchased are verified by a member of 



the auditing committee and reported to the board 

 monthly. All bills payable are passed upon by 

 the board, while the by-laws say : ' The board of di- 

 rectors may determine from time to time what credit 

 may be given to members, and a monthly report shall 

 be made to the board by the person in charge of the 

 store, showing the amount of business done and the 

 amount of indebtedness, and under no circumstances 

 shall credit be given to any member who is one year in 

 arrears to the Society.' This law is enforced, and 

 while these methods are carefully followed your business 

 will be safely conducted. 



" It is not the true policy of any co-operative store to- 

 cut regular fair prices, existing in the town where such 

 store is located. It ought not to be necessary to resort io- 

 it to obtain the patronage of its members. Prices should 

 be cut only on such articles as are receiving an extrava- 

 gant profit ; and in most stores there are many such 

 articles which you are obliged to buy during the year. 

 Nearly every day some one will say to us that he can 

 buy such an article just as cheap elsewhere. Admitting 

 the fact, could you do so if our store did not exist ? 

 Do any of our merchants propose to divide their profits 

 with their customers at the end of the year ? If they 

 have made |;i,ooo over and above all reasonable 

 expenses, allowing a fair salary for themselves, interest 

 on money invested, etc., will they divide the profit, thus 

 made from your trade, with you at the end of the year ? 



" We cannot expect to make the large percentage on 

 sales as is shown in the reports of co-operative stores in 

 the cities, where they handle goods which bring a good' 

 profit, while our business must consist largely in hand- 

 ling feed, fertilizers, and such goods as are handled at a 

 less profit. Yet we believe that, with the experience 

 gained in the past, and careful management by those 

 entrusted with its care, together with the support it 

 ought to receive from our members, the percentage of 

 profit on sales may be largely increased." 



The Union has also saved money in the purchase of 

 fruit packages and other articles. The summary of its 

 financial condition for the year ending January ist,. 

 1890, is as follows : 



Cash on hand January ist, 1889 1:1,427 52: 



Received during the year 110,688 34 



$112,115 



Cash paid during the year $111,720 57 



Balance on hand 395 29 



$112,115 86 



