McClure v. Co-Operative Elevator & Supply Co.

Citations

• 105 Kan. 91
• 181 P. 573
• 1919 Kan. LEXIS 25

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>Cooperative Corporation — Organization of Farmers — Division of Net Profits — How Determined. A cooperative corporation was organized by farmers under section 2306 of the General Statutes of 1915. The basis for the division of net profits was ascertained by adding to the total amount paid for products sold by stockholders to the corporation the total amount paid by stockholders for merchandise purchased from the corporation. After paying expenses, and after paying a fixed dividend to all stockholders, net profits were realized. One of the stockholders, in addition to being a farmer, conducted a grain, brokerage, and commission business. He purchased a large amount of grain from the defendant at the market price and sued to recover his proportionate share of the net profits. If he recovers, the result will be that he purchased his grain for less than the market price at the expense of the other stockholders. Held, that he cannot recover.</p>