8 BULLETIN 371, U. S. DEPARTMENT OF AGRICULTURE. 
pro rata share of the entire net profit, thus equalizing the rate of 
payment per bushel to each patron? The solution of this question 
rests upon the point of view which the cooperators maintain in rela- 
tion to the purposes of cooperation. If they look upon the subject 
from a broad standpoint and consider themselves as members of the 
county organization first and of their local organization last, then 
they will feel that the rate of dividend payments should be equalized 
according to the transactions of the organization as a county unit. 
On the other hand, if the organization is not so closely united in 
sentiment nor in actuality, but is rather a group of organizations 
banded together for the mutual benefit of the separate elevators and 
not for an equal rate of benefit to the patrons, each patron will de- 
pend upon the prosperity of his local for the rate of return per 
bushel on his grain. His other transactions with the company would 
be on the same principle. : 
COUNTY UNIT OR DISTRICT REQUIREMENTS. 
For accounting purposes the methods of doing business in the 
fourth and fifth classes of companies which operate elevators or 
warehouses exclusively would fall under three heads, two of which 
are operative under the county-unit plan. These may be defined as 
follows: Groups of elevators where the profits are determined for 
each elevator; groups of elevators where the profits are pooled in the 
treasury of the general organization; and groups of elevators ship- 
ping to a terminal elevator belonging to the company, where the 
grain is held for future sale and where grain from various elevators 
is mixed in the process of selling, thus losing the carload identity 
of the different original shipments.t| Under the third group two 
divisions may be found. The first, wherein the various elevators 
ship all their grain to the terminal warehouse, and the second com- 
prising those which ship partially to the terminal warehouse and 
sell the remainder of their output independently to outside parties. 
Accounting methods suitable for the first two groups would be 
practically identical with those used under the county-unit plan 
except that the idea would have to be extended in accordance with 
the increased number of elevators participating. ‘In considering 
the third group, there is the possibility of a difference of opinion 
over the basis of distribution, as previously cited—whether it should 
be upon an equal pro rata division of the net profits, considering 
the profits as belonging to the entire organization, or whether each 
elevator should receive back its pro rata share of the whole net 
1The Farmers’ Union operates terminal warehouses at various points in the Canadian 
Northwest which would fall under this plan. 
er ai eR ee: Merde use 
