DEPARTMENT OF AGRICULTURE


 The first was originally the only kind organized. This
class has but one purpose: the welfare of the stockholder.
All net profits are considered the rightful property of
the stockholders. The voting power is lodged in the
shares. The shareholders may vote for the board of di-
rectors or other officers. The voting power may belong
exclusively to the holders of common stock or may ex-
tend to the preferred stock. It may have both preferred
and common or all may be common. It may have a vot-
ing board which has all the voting powers. In either
case the profits go to the stockholders. Most of our in-
dustrial corporations are of this kind. The defense of
this type of corporation is that those who assume the
risk of failure and have their money invested are due
whatever returns the business may net.

 The second class of corporations-the profit-sharing
-goes one step further and allows a certam percent of
the profits to go to the employes in addition to their
wages, the bonus to be pro rata, based on the salary or
wages of each. This is calculated to tie the employes
to the company and encourage the "spirit of the shop"
till strikes will be a thing of the past This plan is cal-
culated to make the employes feel that they are getting
a square deal and they will have no desire to destroy the
business that gives employment and gives them all that
the profits will justify. This plan is coming in favor with
quite a few large employers.

 The third kind of cooperative corporation goes still
 one step further and includes the three absolutely essen-
 tial factors in the operation of any business: the stock-
 holder, the employee and the customer. Neither is more
 important than the other and neither should have all the
 benefits of success. In the distribution of profits the
 cooperative corporation limits the profits that go to the
 stockholder just as profits are limited to a bond holder.
 After paying expenses the stockholder is a preferred
 creditor up to the rate which is established as the rate


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