72 BULLETIN" 1266, U. S. DEPARTMENT OF AGRICULTURE. 
On this basis it was decided to build a cement factory with a ca- 
pacity of 200,000 barrels. This capacity was increased during the 
building period to care for the increasing membership. The new 
plant delivered its first cement to members in the summer of 1913. 
At the time of the annual general assembly meeting in November, 
1913, the association had a cement factory in operation with a ca- 
pacity of 300.000 barrels a year, erected at a. cost of 1,118,044 kroner 
($299,636 at par) , and 400 local cooperative associations and 116 indi- 
vidual shareholders had signed 5-year agreements to take their neces- 
sary cement, together with a definite amount of share capital. 
The problem of financing this undertaking was embarrassing, as 
the cement ring had gained a powerful influence with the large bank- 
ing institutions in the Kingdom. The association experienced great 
difficulty, but finally at a late date a large Copenhagen bank granted 
the association a loan of $160,800 at par of exchange. The member- 
ship share capital amounted to $64,836. The Jutland Cooperative 
Association for the Purchase of Feeding Stuffs granted a loan of 
$53,600. When- the necessary fixed capital had been finally secured 
and the plant completed, the association needed $53,600 for operat- 
ing capital. The association turned to the large banks but found 
the doors closed to it. When the banks refused to supply the plant 
with operating capital, the leaders in the association went out and 
raised the required amount through private loans among the 
cooperators. 
Both associations and individuals are members of this association. 
Cooperative stores and other cooperative purchasing associations 
may become members. The individual users of cement join one of 
the local associations and receive their cement supply through it. 
Each association must buy at least one 500 kroner share of capital in 
the plant, one-fourth in cash and balance in four yearly installments. 
The association agrees to purchase the entire cement supply used 
by its members for a period of five years. 
Individual members who are large users of cement, such as manu- 
facturers of cement wares and building contractors, may become 
members of the cooperative cement factory association. The amount 
of their share capital is fixed according to their yearly cement pur- 
chases, and each member is pledged to purchase his supply from 
the cement factory for a 5-year period. Both kinds of members 
are liable for the factory's obligations only to the extent of their 
share capital. 
Cement is distributed to members at the prevailing prices on the 
Danish market. The net surplus earnings are returned to the mem- 
bers in proportion to their purchases. The committee of represen- 
tatives (25), elected by the members, elect the board of directors, 
which in turn elects the manager, who assumes the business man- 
agement of the factory. 
What the Cooperative Cement Factory meant to the cement users 
in Denmark was quickly realized when the cement prices with the 
United Cement Factories dropped 2 kroner (53.6 cents) per barrel 
the first year. With the normal use of 1,500.000 barrels, this meant 
a saving of $804,000 the first year. The association announced a 
net earning of $14,204 the first year. In 1914 the factory was too 
