Bookstore surplus profit, other problems explained
Editor s note: This is the second
of a two-part series dealing with
the organization and financial
situation of the University of
Oregon Bookstore, Inc.
By KAREN HOLT
Of the Emerald
On Tuesday, Joe College and
friend Suzy Coed had just de
minor theft problem. Under these
circumstances, it manages to
maintain a two per cent profit mar
gin.
If the Bookstore is a non-profit
organization, ask Joe and Suzy,
where does its profit margin go?
According to the Articles of In
corporation of the University
Bookstore, Inc.: on June 30 of
each year, the Board of Directors
Drawing by Frances Fujii
married an accounting of Book
store profits. They had discovered
that the Bookstore pays no Fed
eral taxes, has only one low
interest debt and its mortgage, is
not scheduled for any major capi
tal improvements, and has only a
determines what amount of the
Bookstore's net earnings consti
tutes a “surplus"; this surplus is
then disbursed “to the University
for its educational purposes or...to
an independent affiliated organi
zation exempt from Federal In
come Taxation...created and ex
isting to assist the University in its
educational purposes.” (Article
IV.) Under this system, Joe, Suzy
and their fellow Bookstore patrons
would make a charitable donation
each year to the University
through the non-profit auspices of
the Bookstore.
Actually, the Board has found
no surplus of capital in any year
since incorporation. Furthermore,
according to Manager Gerald
Henson, the Bookstore is not re
quired to turn any of its profits over
to the University so long as it is in
debt. Because the mortgage will
not be paid off until 1965, present
profits are re-invested in the cor
poration.
“It has all been plowed back into
inventories,” says Henson. The
Bookstore s inventory is expand
ing steadily.
Several alternative text
sources are available to Joe and
Suzy. Since the University does
not administer the Bookstore,
University faculty are not required
to order their classroom texts ex
clusively through that source.
A few teachers do take advan
tage of this freedom, mostly by or
dering through the Bookstore’s
major competitor, The Id. Man
ager Henson professes not to
mind the competition, but he does
admit concern that professors fail
to notify him when they switch.
Henson maintains that some
teachers create difficulties for
their disabled students (who shop
the Bookstore exclusively) by or
dering from alternative sources.
Henson says he has other prob
lems with the faculty as well. The
deadline for ordering fall quarter’s
texts is May 26, but Henson
claims that a significant number of
professors did not turn in their
order sheets until the deadline
had passed.
“They’re very, very slow and I
don’t know how you could get
them to hurry...The faculty is
doing the students a disservice.”
Henson maintains that their tardi
ness is the primary reason for late
text arrivals.
And if Joe finally decides that
he’s had it with buying texts al
together and surrenders his status
as a student, he may be able to
land a job working in the Books
tore for $2.13 an hour—minimum
wage. “We have to comply with
Federal limits,” says Henson,
"because we gross over $1 million
per year.” As a non-student, Joe
would stand a better chance of
being hired. Of a total of nearly
sixty employees, twelve to eigh
teen are students, Henson re
ports.
Although the Bookstore is not
obligated to hire students, Henson
claims that preference is given
them in hiring. Actually, Joe is at a
distinct disadvantage even as a
non-student. Henson prefers “to
hire students’ wives. They’re more
stable.”
This, then, is the Bookstore. A
rip-off, Joe? No, just business as
usual.
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