COOPERATIVE AGRICULTURE


stockholder is a preferred creditor up to the rate which is
established as the rate. Next comes the employes and
customers The employes get a certain percent pro rata,
based on the earnings of each. The remainder goes back
to those furnishing the business. If it is a mercantile busi-
ness the relund goes to the purchaser of goods in proportion
to value of purchases by members. Outside customers get
one-half the rebate of members. which may be credits till
they amount to a share, and then a share may be issued. If
it is a selling association commissions are charged to cover
expenses and a reserve, when this has reached a specified
standard the profits are returned to those furnishing the
shipments. to each according to the profits yielded by his
shipment.

 In the control it is usually one man who votes regardless
of the number of shares owned In a few instances the
members vote according to the volume of business furnished
-so much business counting a vote. The same principles
apply whether the articles handled are eggs, poultry, live
stock, dairy products, fruit, vegetables, wheat, cotton or
what not. Farmers' Exchanges never deal in futures subject
to settlement by forfeiture of margins.
 Below we give in definite form the difference between
the relationship that exists between the stockholders, the
employes, and the public when applied to the ordinary
corporation and that relationship when applied to the genu-
inely cooperative corporation.

 NON-COOPERATIVE CORPORATIONS
 There are five fundamental characteristics of non-coop-
erative corporations:
 1. Organized and operated for profit to the promoters
and stockholders.
 2. Grant each share a vote, or limit all voting to a
restricted class of stockholders-such as Common Stock,
Voting Board or Board of Trust, etc.