76 DEPARTMENT OF AGRICULTURE

 Let us take them up in the order named and study the
essential qualities of each The process of securing a
charter is the same in all three kinds.

 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 directors or
other officers. The voting power may belong exclusively
to the holders of common stock or may extend to the pre-
ferred stock. It may have both preferred and common
or all may be common. It may have a voting board which
has all the voting powers. In either case the profits go to
the stockholders. Most of our industrial 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 certain percent of the
profits to go to the employes m 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 calculated to make the em-
ployes feel that they are getting a square deal and they will
have no desire to destroy the business that gives employ-
ment and gives them all that the profits will justify. This
plan is coming m favor with quite a few large employers

 The third kind of cooperative corporation goes still one
step further and includes the three absolutely essential fac-
tors m the operation of any business' the stockholder, 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
hmits the profits that go to the stockholder just as profits
are limited to a bond holder. After paying expenses the