REPORT OF CO-OPERATIVE

The annual report of the Co-operative Society was laid before the Board of Directors at its meeting yesterday and has been transmitted to the stockholders. It shows that the business for the past year was the largest in the history of the Society, the total sales amounting to $316,310.46, an increase of about $12,000 over the business of the year preceding. It is to be borne in mind that this increase has taken place in a year of general business depression and in the face of a decreased enrollment in the undergraduate department of the University, the source from which the Co-operative draws its chief patronage. The Society's, membership made a slight gain, being. 2493 at the close of the fiscal year as, against 2479 a year ago.

The gross profits from sales amounted to $62,794.88 and the total expenses of conducting the store, including wages, interest, taxes, insurance, amounted to $48,657.96. After allowance has been made for depreciation of stock and fixtures and a reserve set aside to provide for all overdue or doubtful accounts, the sum of $15,303.81 remains available for distribution in dividends to members. Of the Society's total sales the dividend bearing purchases amount to about $189,000, or approximately 60 per cent. of the whole, so that the directors are able to recommend to the stockholders the payment of the usual 8 per cent. dividend for the year. This will form the largest dividend disbursement in the Society's history and is nearly three times the amount paid five years ago. During the past five years the Co-operative has paid out in dividends more than $60,000, besides setting aside all necessary reserves and making liberal allowances for depreciation.

The report shows that the Co-operative makes an average of about 20 cents on every dollar's worth of goods sold and that the average expense involved in the sale of a dollar's worth of goods, including allowances for depreciation, etc., is about 15 cents. The business is therefore conducted on a narrow margin of net profit and a dividend of 8 per cent, would not be possible were it not for the large amount of sales to nonmembers who draw no dividends on their purchases, yet whose patronage contributes to the amount of net profit available for distribution to those purchasers who are members. Sales to non-members during the year amounted to $117.000, an indication that a considerable part of the Co-operative's trade is not drawn to its counters by the expectation of dividends, but by the idea that quality, or prices, or both are more satisfactory there than elsewhere.

The Harvard Co-operative store was the first of its kind in this country, and although somewhat similar enterprises have been established at various university centres during the intervening 27 years, as for example at Yale, Princeton, Cornell, Chicago, and California, the Harvard store is much the largest and most profitable among them. In fact, its vol- ume of annual business is about as large as that of all the others put together. Some idea of the service which the Cooperative renders to the University in general may be gained form the statement in the annual report that more than 60,000 volumes were sold during the year by its book department.

Dividend cheques for members will be available at the usual date of payment, about November 15