The above two sources of income provide no money for education, research, evacuation of workers from occupied areas, technical training, refugee work relief, medical help, or capital loans in guerrilla regions. Necessary auxiliary activities as these are provided for to a certain extent by gifts from interested men and women in China and abroad.... FORMING AN INDUSTRIAL COOPERATIVE: When a depot is first set up, the depotmaster advertises the objectives of the C.I.C. by posters and speeches. But as soon as a few workmen get to know about its activities there is no more need to advertise. There are always plenty of workers who will prefer the security and freedom of a cooperative to unemployment or to working for a master. The number of men needed to form a cooperative is at least seven, but there is no upper limit. They first come to talk things over with a C.I.C. organizer, present their plan for setting up a factory or workshop, with proof of their qualifications and a tentative budget showing how much loan capital will be needed to start work. The organizer explains to them the cooperative system of self-government, Chinese cooperative law, and the C.I.C. Model Constitution. Then they take some descriptive literature home, and discuss among themselves whom they want as their officers. Meanwhile, their plans are talked over by the depotmaster, accountant, organizer, and engineer, and modifications suggested. If, as often happens, it turns out that they are only merchants anxious to get rich quick and not _bona fide_ workmen ready to work hard, the plans are rejected. If all is satisfactory, a meeting is held for the election of officers, determination of share capital, voting of wages, and work begins as soon as the loan is put through. At least one quarter of the subscribed share capital must be paid up immediately, and the total loan--long-term and short--cannot exceed 20 times the subscribed share capital.... The actual ratio of share to loan capital averages about 1 to 6. INDUSTRIAL DISTRIBUTION: Distribution of industry is shown in the following condensed table: Textiles 610 [cooperatives] Engineering 49 Mining 118 Chemical 206 Pottery 69 Foodstuffs 83 Transport 4 Miscellaneous 395 ----- 1,534 */ There are no less than 114 types of cooperatives, and almost every daily need of the people can be met.