SOCIETY ADDS TO BUSINESS

The annual report of the directors of the Co-operative Society for the fiscal year ending June 30, 1916, shows an increase in volume of business and in net earnings, with a decrease in expenses. The total sales of merchandise at the main and branch stores amounted to $445,391.45, an increase of $33,991.05 over the regular sales of the year preceding. This has been the largest year's business in the Society's history. The following table shows the volume of sales for the two years arranged by departments: 1915  1916 Men's furnishings  $87,623.23  $83,821.24 Books  99,099.49  103,035.49 Stationery  90,257.56  99,431.77 Furniture  33,141.04  48,853.48 Tailoring  36,767.48  39,140.86 Coal and wood  39,169.45  45,053.53 $386,058.25  $419,336.37 Branch store  25,342.15  26,055.08 $411,400.40  $445,391.45

Gross Profits for 1915-1916.

The gross profits from sales amounted to $83,662.90, as compared with $75,179.01 a year ago, which is an increase of $8,483.89. Income from membership fees and other sources amounted to $5,526.50, making the total gross earnings for the year $92,146.79.

Expenses Reduced.

The general expenses of the business including the regular allowances for the depreciation of fixtures and for all overdue accounts, amounted to $64,558.85, as compared with $67,843.82 for the previous year. This substantial reduction in expenses has been secured in spite of a considerable increase in the volume of sales as well as in the current cost of labor and supplies.

Net Profits and Reserves.

From the net earnings of the year ($24,457.61) the Directors have voted to add $4,500 to the reserve against the depreciation of merchandise, bringing this fund up to $15,000, or approximately 20 per cent. of the inventory of stock on-hand as of June 30. The Directors have also voted to add $1,413 to the Society's re-building fund, making this reserve now stand at $23,000.

Dividends Pay More.

After these additions to reserve have been made the sum of $18,644.61 remains available for distribution in dividends to members or for additions to the Society's regular surplus. A year ago the amount so available was $15,202.84.

In accordance with the votes of the Directors and stockholders the members of the Society were given due notice that two rates of dividends might be declared for this and succeeding years, one on cash purchases and the other on credit purchases, with a differential of not more than 2 per cent. on the former.

The total dividend-bearing sales for the year amount to $221,958, and on these sales the Directors have recommended and the stockholders have declared a dividend of 9 per cent. on all cash purchases made by members and a dividend of 7 per cent. on all credit sales. The total amount to be paid in dividends this year will be $16,614, an increase of $1,538 over the amount paid a year ago.

Dividend checks will be ready for members about the middle of October.

New Technology Branch Established.

At the ivitation of the Institute authorities and by arrangement with the Technology Co-operative Society which now goes out of existence, a branch store was opened this autumn on Massachu- setts avenue directly opposite the new Technology buildings. Technology students are now eligible for membership in the Harvard Co-operative Society and nearly 1600 Tech men have joined since the opening of the college year. Sales at the Tech Branch thus far have exceeded expectations, amounting to nearly $25,000 in the first week. The Tech members will receive whatever dividends this branch store may earn.

Condensed Balance Sheet.

The following is a condensed balance sheet showing the Society's assets and liabilities as of June 30, 1916, as compared with the same date in 1915:

Assets.June 30, 1915  June 30, 1916Cash  $805.96  $1,487.78Stock  64,880.40  76,101.42Accts. Receivable  54,300.60  45,504.71Real Estate  72,700.00  72,700.00Bidg. Gen'I. Insur.  495.58  434.82Fixtures  4,895.02  4,327.85Stable acct.  848.13  1,129.33Insurance (mdse)  206.54  525.81Cash Disc't. Suspense  191.42  317.17Advanced Vacation Salaries  37.50  65.00Tech Advertising  54.08$199,361.15  $202,647.97Liabilities.Accts. Payable  37,613.41  31,827.13Notes Payable  10,000.00  10,000.00Reserve doubtful accts.  3,238.27  2,957.83Reserve Merchandise  13,606.61  10,500.00Bldg. Fund  21,587.00  21,587.00Mortgage Payable  45,000.00  45,000.00Mortgage Payable  45,000.00  45,000.00Capital  50,000.00  50,000.00Surplus  6,219.63  6,318.40Profit and Loss  12,096.23  24,457.61$119,361.15  $202,647.9

Gross Profits for 1915-1916.

The gross profits from sales amounted to $83,662.90, as compared with $75,179.01 a year ago, which is an increase of $8,483.89. Income from membership fees and other sources amounted to $5,526.50, making the total gross earnings for the year $92,146.79.

Expenses Reduced.

The general expenses of the business including the regular allowances for the depreciation of fixtures and for all overdue accounts, amounted to $64,558.85, as compared with $67,843.82 for the previous year. This substantial reduction in expenses has been secured in spite of a considerable increase in the volume of sales as well as in the current cost of labor and supplies.

Net Profits and Reserves.

From the net earnings of the year ($24,457.61) the Directors have voted to add $4,500 to the reserve against the depreciation of merchandise, bringing this fund up to $15,000, or approximately 20 per cent. of the inventory of stock on-hand as of June 30. The Directors have also voted to add $1,413 to the Society's re-building fund, making this reserve now stand at $23,000.

Dividends Pay More.

After these additions to reserve have been made the sum of $18,644.61 remains available for distribution in dividends to members or for additions to the Society's regular surplus. A year ago the amount so available was $15,202.84.

In accordance with the votes of the Directors and stockholders the members of the Society were given due notice that two rates of dividends might be declared for this and succeeding years, one on cash purchases and the other on credit purchases, with a differential of not more than 2 per cent. on the former.

The total dividend-bearing sales for the year amount to $221,958, and on these sales the Directors have recommended and the stockholders have declared a dividend of 9 per cent. on all cash purchases made by members and a dividend of 7 per cent. on all credit sales. The total amount to be paid in dividends this year will be $16,614, an increase of $1,538 over the amount paid a year ago.

Dividend checks will be ready for members about the middle of October.

New Technology Branch Established.

At the ivitation of the Institute authorities and by arrangement with the Technology Co-operative Society which now goes out of existence, a branch store was opened this autumn on Massachu- setts avenue directly opposite the new Technology buildings. Technology students are now eligible for membership in the Harvard Co-operative Society and nearly 1600 Tech men have joined since the opening of the college year. Sales at the Tech Branch thus far have exceeded expectations, amounting to nearly $25,000 in the first week. The Tech members will receive whatever dividends this branch store may earn.

Condensed Balance Sheet.

The following is a condensed balance sheet showing the Society's assets and liabilities as of June 30, 1916, as compared with the same date in 1915:

Assets.June 30, 1915  June 30, 1916Cash  $805.96  $1,487.78Stock  64,880.40  76,101.42Accts. Receivable  54,300.60  45,504.71Real Estate  72,700.00  72,700.00Bidg. Gen'I. Insur.  495.58  434.82Fixtures  4,895.02  4,327.85Stable acct.  848.13  1,129.33Insurance (mdse)  206.54  525.81Cash Disc't. Suspense  191.42  317.17Advanced Vacation Salaries  37.50  65.00Tech Advertising  54.08$199,361.15  $202,647.97Liabilities.Accts. Payable  37,613.41  31,827.13Notes Payable  10,000.00  10,000.00Reserve doubtful accts.  3,238.27  2,957.83Reserve Merchandise  13,606.61  10,500.00Bldg. Fund  21,587.00  21,587.00Mortgage Payable  45,000.00  45,000.00Mortgage Payable  45,000.00  45,000.00Capital  50,000.00  50,000.00Surplus  6,219.63  6,318.40Profit and Loss  12,096.23  24,457.61$119,361.15  $202,647.9