C00PUKAT1VK OR'iAXIXATfoX BUSINESS METHODS. 15 
zation. Where the organization is formed as a stock company pure 
and simple, the dividend is apportioned to each stockholder on the 
basis of the amount of stock held by each. In strictly cooperative 
organizations a dividend is generally paid to stockholders at a rate 
to provide reasonable interest on the investment. The balance o£ 
the profits are prorated back to the members in proportion to the 
total amount of business done by each during the season. The 
amount paid as a fixed dividend on stock naturally will vary with 
the interest rates of different localities. In some cooperative organi- 
zations no dividend on stock is paid, but the entire profit is divided 
pro rata among the members, according to the amount of business 
done by each with the organization. 
To be valid, dividends must be declared out of the organization 
profits — that is, out of the balance remaining after all current ex- 
penses of operating are paid, and fixed charges, which include 
amounts set aside as surplus and for depreciation, are provided for. 
Power to declare dividends is vested in the directors. 
The real purpose of a cooperative organization for marketing 
farm products should be to obtain the highest possible price for 
products delivered to the organization, and to furnish supplies to 
members at a charge as near cost as possible, there being collected 
only a sufficient charge above the actual working cost to provide for 
an increase in working capital. If this is done, dividends to mem- 
bers will be cut to a minimum. 
Some organizations return to the members the full amount re- 
ceived for the product, less actual expenses, withholding only a 
small amount for emergencies, this amount going into a fund to 
cover any possible losses during the year. The balance of this fund 
is rebated to the members at the end of the year, pro rata to the 
amount of business done. 
The best plan is to allow invested capital a reasonable amount of 
Interest, set up a surplus fund to increase the working capital if 
desired, but above these charges to return to the members, at the time 
statements are made, the total amount received for their product less 
actual expenses and the amount set aside for surplus. 
TRIAL BALANCE BOOK. 
In order to preserve the trial balance some bookkeepers prefer to 
open up a trial balance book. This book is ruled with a folio column, 
name column, and numerous money columns, usually 12, accommo- 
dating 6 trial balances on a double page. In this way it is necessary 
to write the headings of the accounts but twice a year. 
The trial balance book can also be made in another form, with 
alternate long and short sheets, the long sheets extending beyond the 
margin of the short sheets the width of the name column. The 
