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 A GROUP OF CO-OPKRATORS. 
 
 1. Thk At thou. 2. CKOHOK l)K\\ llllisT. Arliiifjtoii (o-oiM'iat ivo Asso- 
 ciation. 3. H. <". LiVEU.MoliK, Jolinson Comity (Kiiiisas) Co- 
 operative Association. 4. .1. S. RtxJKItS, Texas C<)-oi)eiHtive 
 Assu<;iatioii. .5. '/.. I'. MATTHEWS, Haniinonton Fniit 
 Growers' I'liion and Co-operative Society.
 
 HOW TO COOPERATE. 
 
 THE FULL FRUITS OF LABOR TO PRODUCER, 
 HONEST VALUE TO CONSUMER, JUST 
 RETURN TO CAPITAL, PROS- 
 PERITY TO ALL. 
 
 A MANUAL FOR COOPERATORS. 
 
 HERBERT MYRICK 
 
 NEW YORK: 
 
 ORANGE JUDD COMPANY, 
 18 91.
 
 Copyright, 1891, by 
 All Rights Reserved. 
 
 NOTE TO THE READER. 
 
 K this book does not tell you plainly just how to co-operate in the line you 
 desire, the Author will, upon request, try to give you the precise information you 
 want if you will aslc for it in definite questions. He will also be glad to assist the 
 co-operative movement in any feasible manner. It will be a favor if all efforts of 
 this kind, now existing or hereafter established, be promptly reported to him. 
 The Author may be addressed at Springfield, Mass. ; or 52 Lafayette Place, New 
 york City; or 504 The Rookery, Chicago, HI,
 
 CONTENTS. 
 
 Pages. 
 PREFACE 7-9 
 
 CHAPTER I. WHAT Co-operation Is and Is Not 9-23 
 
 CHAPTER II. The History of Co-operation 23-36 
 
 CHAPTER III. The Co-operative Store 36-83 
 
 CHAPTER IV. Further Examples of Co-operative Distri- 
 bution. How TO Start A Store 83-127 
 
 CHAPTER V. Co-operative Production 127-143 
 
 CHAPTER VI. CO-OPERATIVE DAIRYING 143-159 
 
 CHAPTER VII. CO-OPERATIVE FIRE INSURANCE 159-178 
 
 CHAPTER VIII. CO-OPERATIVE BANKING 178-207 
 
 CHAPTER IX. FARMERS' AND PEOPLE'S EXCHANGES 207-241 
 
 CHAPTER X. WOMEN'S EXCHANGES AND HOW THEY MAY BB 
 
 Run 241-252 
 
 CHAPTER XI. THE FUTURE OP CO-OPERATION 252-254 
 
 APPENDIX: 1. WORKING BY-LAWS AND MODEL RULES. 2. DESCRIP- 
 tive directory of all classes of co-operative enterprises. 
 3. Laws Relative to Co-operation. 4. Bibliography of Co- 
 operation. 5. Advertisements 266-346 
 
 ACKNOWLEDGMENT. 
 
 Tbe Author is under obligations to most of tlie gentlemen men- 
 tioned In connection witli the cooperative enterprises referred to in 
 the following pages. Tliey and many others have greatly assisted in 
 the preparation of this worlc. The Author's most grateful thanks are 
 cordially extended to each and all.
 
 LIST OF ILLUSTRATIONS. 
 
 _ Page. 
 
 Frontispiece A Group of Cocperators. 
 
 Fig. 1. Central Store of the English Wholesale CoSperative Society 28 
 Fig. 2. Store and Block of the Lisbon Falls (Maine) Coopera- 
 tive Association 34 
 
 Fig. 3. Arlington's Humble Beginning 38 
 
 Fig. 4. Central Store, Arlington Cooperative Association 63 
 
 Fig. 5. Branch No. 1, Arlington Cooperative Association 66 
 
 Fig. 6. Branch No. 2, Arlington Cooperative Association 63 
 
 Fig. 7. Arlington's Coal and Wood Yard 66 
 
 Fig. 8. Headquarters of the Lyons Cooperative Association 85 
 
 Fig. 9. Thomas H. Angell, Manager of the Lyons Cooperative As- 
 sociation 100 
 
 Fig. 10. New Store of the Allegan County Cooperators 108 
 
 Fig. 11. A. Stegeman, Manager Allegan Association 112 
 
 Fig. 12. Central Store, Johnson County Cooperative Association 119 
 
 Fig. 13. Stores and Warehouse of the Texas Association 124 
 
 Fig. 14. A Cheap Warehouse for Farmer Cooperators 129 
 
 Fig. 15. (a) Interior View of Fig. 14 Cooperative Marketing 132 
 
 Fig. 15 (b). Eneas Cash, Secretary of the Lyons Copoerative Asso- 
 ciation 139 
 
 Fig. 16. Elevation of a Model Cream Gathering Butter Factory 146 
 
 Fig. 17. Plan of Work Room in Cream Gathering Factory 149 
 
 Fig. 18. Elevation of a Cheese Factory 152 
 
 Fig. 19. Ground Plan of Cheese Factory 154 
 
 Fig. 20. Second Story of Cheese Factory 156 
 
 Fig. 21. Elevation of a Whole Milk Receiving Creamery 167 
 
 Fig. 22. Floor Plan of Whole Milk Creamery 172 
 
 Fig. 23. The Striking Advantages of Cooperative Savings 187 
 
 Fig. 24. Typical Seal of a Successful Farmers' Bank 195 
 
 Fig. 25. Edwin Snyder, Live Stock Agent Kansas Alliance Ex- 
 change company 208 
 
 Fig. 26. Marketing the Peach Crop Cooperatively 212 
 
 Fig. 27. Loading Peaches at the Delaware Fruit Exchange 216 
 
 Fig. 28. A Cooperative Evaporating Factory 218 
 
 Fig. 29. Eli Titus, Manager American Live Stock Commission Com- 
 pany 223 
 
 Fig. 30. Front View of the Hammonton Cooperative Store and Fruit 
 
 Exchange 228 
 
 Fig. 31. Plan of First Floor of the Hammonton Store 231 
 
 Fig. 32. Arrangement of Second Floor, Hammonton 231 
 
 Fig. 33. Shipping Department of the Hammonton Fruit Union 235 
 
 6
 
 PREFACE 
 
 The True Way Out of the evils that now afflict both 
 producers and consumers is through an agency that 
 already exists. It is right at hand. Its ways are the 
 methods of peace. This agency requires no favored 
 legislation, no political revolution, no social overthrow. 
 It builds up instead of tearing down. Yet its success 
 has been abundantly demonstrated under the most ad- 
 verse circumstances. It is as permanent as a human 
 institution may be. It supplies its own capital, insures 
 its own prosperity, and increases in practical beneficence 
 with age. Thoroughly Christian in nature and applica- 
 tion, no phase of belief can take exceptions to it. Nor 
 does it antagonize the reforms in politics and govern- 
 ment and taxation, in land or finance or transportation, 
 that are now so prominent in the public mind. 
 
 In one sense independent of all these, in another view 
 it is indispensable to any reform that is to be of lasting 
 benefit to the whole community. Yet it is intensely 
 practical, perfectly adapted to country, town or city, 
 within the reach of all grades of people, and thoroughly 
 suited to the varied needs and capacities of producers 
 and consumers in all the great vocations of life. More- 
 over, it interferes with no reasonable effort to ameliorate 
 the conditions of society, but extends to such the hand 
 of fellowship. Above all, it in no possible way antago- 
 nizes any farmers' secret .orders or open organizations, 
 and in no manner interferes with trade unions or labor 
 7
 
 8 PREFACE. 
 
 associatioDB. Yet it is an agency through which all 
 such orders, organizations, unions and associations may 
 immensely stimulate and perpetuate their usefulness. 
 
 The true way out is summed up in the one word 
 Cooperation. 
 
 The present great farmers' movement, and the phe- 
 nomenal activity among all industrialists, will be fruit- 
 ful in results of permanent benefit according to the 
 degree in which, without neglecting its specific objects, 
 it embraces the principles of true cooperation. This 
 movement must substitute cooperation for competition, 
 thus reforming distribution and giving to the producer 
 the full fruits of his labor, to the consumer honest value 
 for money paid, and to capital an equitable return for 
 its use and risks. 
 
 This manual is written to facilitate such a result. 
 Primarily designed for farmers producers and con- 
 sumers in country districts the wants of the toiling 
 masses in town and city, factory, store and mine, have 
 also been kept in view. To be thoroughly practical, 
 within the grasp of those whom cooperation will most 
 benefit, and a true friend and prudent adviser to the 
 masses who must manifestly find their way out only 
 through cooperation is the high aim of this book. It 
 means to describe the How rather than the Wherefore 
 of Cooperation ; to be a treatise on the Art, just how 
 to cooperate, rather than a dissertation on the Science, 
 Theory and Ethics of the subject. Less theory and 
 more practice is the great need of cooperation. Tc 
 what extent this aim has been fulfilled the reader must 
 judge not 
 
 THE AUTHOR
 
 HOW TO COOPERATE. 
 
 CHAPTER I. 
 
 WHAT COOPERATION IS AND IS NOT. 
 
 "United to Relieve, Not Combined to Injure," 
 
 the motto of the Arlington cooperators states in the 
 fewest possible words the province of cooperation. The 
 union means united effort among individuals. The 
 relief sought will vary with circumstances. Men often 
 work in unison to accomplish political or religious re- 
 forms. This is cooperative effort of one kind. Again, 
 people unite for their social, moral and educational ad- 
 vancement. Carried on in the right way this also is 
 cooperation. 
 
 The True Cooperative Spirit Whatever work- 
 ing together is animated by the true cooperative spirit 
 the desire to do as we would be done by is in one 
 sense cooperation. Indeed, the aim of the early coop- 
 erators of half a century ago and earlier was the com- 
 plete reorganization of society. They hoped to develop 
 that spirit of equity and equality that is now perhaps 
 best expressed by the term "Christian socialism." In 
 such a state of society people would practice the cardinal 
 principles taught by Jesus Christ, changing the existing 
 order of things so far as necessary to carry out this 
 beneficent purpose. This evolution was to be worked 
 9
 
 10 HOW TO COOPERATE. 
 
 out through the united action of individuals, rather 
 than brought about by the government operation of 
 industry contemplated by the average socialist of to-day. 
 Cobperation, as Herein Advocated and described, 
 is mainly confined to union of effort, the fruits of which 
 shall be divided among the participants according to 
 services (labor) rendered, instead of being paid in divi- 
 dends on capital. Attention is concentrated upon united 
 effort in the following directions : 
 
 1. Buying and selling supplies cooperative distri- 
 bution. 
 
 2. Agricultural operations, and converting raw pro- 
 ducts or other materials into manufactured articles 
 cooperative production. 
 
 3. Saving and loaning money cooperative banking. 
 
 4. Mutual fire insurance cooperative insurance. 
 How Adapted to All. It is not essential to such 
 
 cooperation that the participants be extremists in social 
 regeneration or idealists as to human perfection. One 
 need not be a crank to become a cooperator. On the 
 contrary, the wonderful power of cooperation lies in its 
 adaptability. Cooperation accepts human nature as it 
 exists in everyday life. This is why cooperation is so 
 eminently practical. Cooperation takes men and women 
 as they are, and through the exercise of mutual interest, 
 tact and forbearance, unites them in effective work for a 
 common object. 
 
 The progress of such union is in no small measure 
 marked by the degree in which the members educate 
 themselves in the morals and principles that underlie 
 cooperation. But such education need not largely pre- 
 cede cooperative effort the two go hand in hand. The 
 best progress is made by combining the practice of 
 cooperation with the science of cooperation. They are 
 one and inseparable, to the fullest benefit. But the real 
 way to cooperate is to cooperate.
 
 WHAT COOPBBATION IS AND IS NOT. 11 
 
 Cooperation not a Monopoly. Right here .should 
 be emphasized the fact that cooperation, as herein 
 treated, is in no sense a "trust" or syndicate, as those 
 words are popularly understood. There is just as much 
 difference between true cooperation and the trust, or 
 syndicate, as there is between black and white. The 
 difference is just this : In Cooperation, people hire 
 capital, pay expenses of the business and divide the 
 profits in dividends on labor, that is, on goods handled 
 or produced. The capital may be furiiished by the 
 cooperators or hired outside. It is simply hired, and a 
 moderate rate of interest paid on it. The profits and 
 economies effected by cooperation are divided among 
 the producers and consumers according to their product 
 or labor. The Trust is a combination of capitalists 
 which practices extortion upon both producer and con- 
 sumer in order to pay still bigger dividends on capital. 
 The trust aims at extravagant returns on capital at the 
 people's expense. Cooperation aims at equal distribu- 
 tion of the profits of industry among the participants, 
 after paying capital its hire. 
 
 In other words, both systems reduce expenses, but 
 cooperation pays the profits in dividends on labor, the 
 trust pays profits in dividends on capital. The trust 
 puts monopoly in the place of competition. We would 
 substitute cooperation for competition. 
 
 The difference between the two is thus fundamental. 
 The one aims at the interests of the masses, the other at 
 the interests of the capitalists. The trust works to 
 make the people the slaves of capital. Cooperation 
 would have capital the reasonably paid servant of the 
 people. Cooperation stimulates self-help. It renders 
 it easy for people to help themselves; it makes them 
 happier and more prosperous. It builds up the entire 
 community, and without injury to any interest. It 
 takes the place of competition, in a legitimate sense.
 
 12 HOW TO COOPERATE. 
 
 Cooperation is, in every respect, well for the people and 
 the state, whether considered in a moral, social, reli- 
 gious or financial sense. The trust is the opposite of 
 all this. 
 
 Cobperation vs. Joint-Stock. Neither should the 
 cooperative corporation be confounded with the joint- 
 stock enterprise. A joint-stock company is simply a 
 convenient plan for dividing the ownership of a business 
 among a number of persons. Such a concern, like a 
 private partnership or business conducted by an individ- 
 ual, is run to make profits on capital only. Each share 
 in a joint-stock corporation is entitled to one vote. 
 Thus capital both controls the management and the 
 profits. Now in cooperation each member has but one 
 vote, irrespective of the number of shares he owns, and 
 the profits (after paying capital its hire at market rates) 
 are divided in dividends on labor or purchases. In coop- 
 eration, the people rule and divide the profits ; in joint- 
 stock, capital governs and absorbs the profits. 
 
 Cooperative vs. Private Trading The great point 
 
 urged against the cooperative management of distribu- 
 tion and production is that good men cannot be secured 
 to manage the cooperative society. The man who would 
 make a success of a cooperative society will go into busi- 
 ness for himself, is the argument used. It is also 
 claimed that not suflBcient oversight can be paid to the 
 business by directors or managers, and that the chances 
 of loss and failure are much greater in cooperative soci- 
 eties than in "regular" enterprises. 
 
 Yet the very men who thus object so strongly to coop- 
 eration among the people practice it themselves. They 
 know it is a good thing for them, but don't want the 
 masses to get its benefits. Look at the big stores in our 
 large cities Wanamaker's, in Philadelphia, for in- 
 stance. Since its heads of departments are so compe- 
 tent, why don't they go into business for themselves ?
 
 WHA.T COOPERATIOlf IS AND IS NOT. 13 
 
 If there is such danger of loss and thieving in a large 
 business, why doesn't John Wanamaker do all his work 
 himself ? A still more forcible example is that of the 
 Thurber Whyland Co., also the H. B. Claflin Co., of 
 New York. These enormous dealers in groceries and 
 dry goods respectively have recently been capitalized, 
 and have placed their stock as extensively as possible 
 among the storekeepers throughout the country with 
 whom they trade, and also among their own employes. 
 They thus practice a most efficient kind of cooperation, 
 insuring a large trade by giving the customer part of 
 the profits. The only difference between this system 
 and the cooperative store, like that at Lawrence, Gal- 
 veston or Olathe, is that in these cooperative societies 
 profits are divided in dividends upon purchases, while 
 the Thurber or Claflin companies divide their earnings in 
 profits on capital stock. In the latter case, the pur- 
 chaser who makes the profit gets only as much of it as 
 his share-holdings permit ; while in the genuine cooper- 
 ative store each member gets all the profits of his own 
 trade a vast difference. 
 
 Good men can be secured to manage cooperative enter- 
 prises and are worth just as much to them as to private 
 traders. The real trouble has been that many coopera- 
 tors tried to do a big business with small men. A cheap 
 man may do at the start, if he is faithful, but if he fails 
 to develop with the business, and does not become more 
 valuable, the "coops" should get a better manager. 
 The best man is usually the cheapest, though he may 
 cost much more. 
 
 Education Required. The "almighty dollar" is 
 the thing that appeals most forcibly to the average of 
 mankind. Since, therefore, we must take human nature 
 as we find it, the first thing is to educate the people up 
 to the fact that cooperation will pay. How much it 
 will pay depends upon a variety of influences, especially
 
 14 HOW TO COOPERATE. 
 
 the faithfulness of the cooperators and the management 
 by the oflScers. In distribution, cooperators can expect 
 to pay fair interest on capital, accumulate a reasonable 
 reserve, charge off conservatively for depreciation, pay a 
 mite to the educational fund, and still have from 5 to 10 
 per cent to declare in dividends on the amount paid for 
 goods bought by cooperators. An equally large divi- 
 dend may be expected on the price received by farmers 
 for produce sold at market rates through the cooperative 
 exchange. Actual results of the profits and economies 
 of cooperation are given in the ensuing pages. 
 
 But as soon as people get ready to cooperate for the 
 profit they will thereby make or save, they will begin to 
 see that the more thoroughly each individual is educated 
 in the great principles of united effort the larger will 
 be their profits, not only financially, but socially and in 
 other ways. Thus the desire to save money or accumu- 
 late a competence will become the active power in the 
 great social reform that must gradually come about in 
 the substitution of the practices and blessings of cooper- 
 ation for the strife and ills of competition. The higher 
 the plane of the educational work provided it is kept 
 strictly within the means, limitations and necessities of 
 the cooperators the more real progress will be made. 
 The intellectual, social and moral development of coop- 
 erators should ever be a leading object. Education in 
 these lines stimulates due regard for each other's feel- 
 ings and wants, and promotes better citizenship and 
 better Christianity. Yet cooperative education achieves 
 this end without infringing in the slightest degree upon 
 the religious or political convictions of cooperators. 
 
 Cobperation vs. Politics and Religion. Indeed, 
 it is to be plainly understood that cooperation, as herein 
 advocated, has no direct relationship, in a sectarian or 
 partisan way, to either religion or politics. Believers in 
 all sorts of religious creeds, agnostics and atheists, may
 
 WHAT COOPEBATION IS AND IS NOT. 15 
 
 work together in cooperative enterprises without even a 
 suspicion of their individual differences on the great 
 prohlem. Why? Because by mutual agreement these 
 matters are ignored at all meetings of the cooperators 
 as such. 
 
 Likewise protectionists and free-traders, republicans, 
 democrats, prohibitionists and persons of diverse views 
 in politics and economics, make model cooperators by 
 dropping this line of thought and action so far as their 
 cooperative corporation is concerned. 
 
 But outside of the cooperative meeting, nothing hin- 
 ders members from exercising their rights and privileges 
 in advocating their opinions on these or other controver- 
 sies of the day. Cooperation, therefore, is not a scheme 
 to proselyte peculiar faiths or politics. Without inter- 
 fering in the slightest degree with individuality in this 
 direction, cooperators unite for financial, social and 
 educational improvement. 
 
 The education required will therefore show that while 
 the immediate object of cooperation is the making or 
 saving of money by the people on their own supplies or 
 labor, it involves principles of far greater possibilities. 
 This education will also prove that the more perfectly 
 these principles are lived up to by cooperators the 
 greater will be both their material and ethical benefits. 
 
 While good business management is essential, unless 
 the promoters are largely imbued with the spirit of true 
 cooperation, success in a pecuniary point of view is 
 doubtful, and the beneficent results, morally and intel- 
 lectually, will be entirely lacking. While not losing 
 sight of the dollars and cents, the members should real- 
 ize that the effort is in the line of progress and equity ; 
 that distributive cooperation is to develop into industrial 
 (where lies its greatest conquests in the future) and 
 thence to integral cooperation. 
 
 What Cooperation is Not. It is not a scheme 
 whereby visionary enthusiasts can reform the world.
 
 16 HOW TO COOPEBATB. 
 
 It is not a new plan of transacting business^ but rather 
 a different method of dividing the fruits of industry to 
 labor rather than to capital. The same principles that 
 govern success in acquiring profit on capital, apply to 
 the acquirement of profit to divide upon labor. Indus- 
 try, application, perseverance, good judgment, all are 
 required in the cooperative as in the existing methods of 
 industry. It is possible for the dishonest merchant to 
 thrive, but cooperation must also depend largely upon 
 the moral integrity of the cooperators. Indeed, one of 
 the marked distinctions between the new and the old 
 system is that cooperation is "a new means of commer- 
 cial morality, by which honesty is rendered productive." 
 The standard quality and quantity of cooperative goods 
 are among their chief merits. 
 
 So cooperation is not a sure way to ease and comfort 
 for the shiftless who won't work, who will not pay for 
 what they buy, and who refuse to pay others for working 
 for them. It is not a means whereby the business of 
 production and distribution will run itself and pour a 
 golden stream into the pockets of the people. It is not 
 proof against the errors of ignorance or mismanagement. 
 Neither is it proof against the knavery of man against 
 fraud or theft. 
 
 In short, cooperative effort is by no means independ- 
 ent of the every-day principles that underlie success in 
 any undertaking or business. It is not philanthropy. 
 It is not a bestowal of alms upon the unfortunate who 
 cannot or will not try to get ahead. On the contrary, 
 cooperators help themselves, earn their profits by their 
 combined thrift and effort, and enjoy the full fruits 
 of competence gained by honorable and independent 
 labor, the process being hastened by faithful working 
 together in distributive, productive, savings and loan, 
 or other forms of cooperation. 
 
 The Perils of Credit, all of which are avoided by 
 cooperation, are succinctly stated in an English leaflet
 
 WHAT COOPBRATIOK IS AND IS NOT. 17 
 
 repriBted by several American "coops." Every cooper- 
 ative store or society will do well do reprint this leaflet 
 for its members. It is as follows : 
 
 *'In its demoralizing influence, credit is undoubtedly 
 next to the terrible drinking habit. Credit does not 
 encourage thrift, which comes from economy and sav- 
 ing. Credit degrades the individual by a consciousness 
 of wearing unpaid for clothing, or of owing for food 
 that has produced the flesh on his bones. Credit helps 
 to keep the working man dependent, and at the mercy 
 of his employer. Credit may absorb a good portion of 
 the capital of a cooperative store, and place it in so much 
 the worse position for buying to the best advantage. 
 Credit increases the cost of living and distribution, and 
 otherwise affects the cost of production in every branch 
 of manufacture, at least twenty-five per cent. Credit 
 inflicts upon the community a frightful tax for the sup- 
 port of an army of accountants, lawyers, and others, and 
 this tax falls upon the consumers. Credit opens, to a 
 large class of unprincipled persons, a channel for the 
 most bare-faced robbery. There is only one way by which 
 the poor can acquire capital, become free from the servi- 
 tude of debt, and avoid the perils of credit, and that is 
 by the profits that can be gathered from the articles, 
 which they can consume, made possible by cooperation 
 on the Rochdale plan of buying and selling pure goods 
 at fair market prices for cash, and distributing equitably 
 the profits. A dollar saved is as good as a dollar earned. 
 The great object of cooperation is to encourage living 
 within one's means, and saving from spendings, to accu- 
 mulate capital, and thereby elevate life and improve 
 social position." 
 
 The Required Organization. Union of effort in 
 
 distribution, production, banking or insurance, is largely 
 
 a matter of business. Therefore, it does not require a 
 
 secret organization. It is not absolutely essential to 
 
 2
 
 18 HOW TO COOPERATE. 
 
 cooperation that it be conducted by the Grange, Farm- 
 ers' Alliance, Knights or Federation of Labor or similar 
 secret organizations. Properly managed, however, these 
 and similar orders are of great value in educating their 
 members up to the possibilities and practicability of 
 cooperation. The cooperative society may be composed 
 entirely or partly of members of any one or all of these 
 or like orders. But so far as the cooperative business 
 itself is concerned, it is not essential that membership 
 should be limited to those who are identified with exist- 
 ing secret or open organizations. If the shareholders in 
 a cooperative store are limited to those who are members 
 of a grange or other lodge, it is mainly to confine the 
 benefits of cooperation to the members of that special 
 order. But associated effort in business is by no means 
 confined to these organizations. It is open to them all 
 and to the general public. Of course the more fully the 
 Grange, Alliance, and Federation or Knights of Labor 
 avail themselves of the benefits of practical cooperation 
 under good management, the stronger will be their hold 
 on their members. But the benefits of cooperation are 
 open to all who choose to avail themselves of the same. 
 The organization actually required is a company, soci- 
 ety or corporation legally instituted under the laws of 
 the State or Territory in which it exists. The require- 
 ments of the laws in the respective States are summa- 
 rized in another chapter. The greatest care should be 
 taken to start a cooperative store on a legal basis so that 
 its rights and powers may be clearly defined, and the 
 liability of its members and officers confined to the 
 amount each has actually invested. This is essential to 
 proper management and for the protection of the mem- 
 bers. Not a few cooperative enterprises organized from 
 1870 to 1876 came to grief not only through mismanage- 
 ment but because they were not legally incorporated or 
 organized, and in some cases the individuals who had
 
 WHAT COOPERATION IS AND is NOT. 19 
 
 done the most work and put in the most money were 
 also held for the debts of the society. All such contin- 
 gencies can be avoided and individual liability guarded 
 against by organizing under the statute. In completing 
 the details of the cooperative organization, or securing 
 its charter or license, the services of a lawyer should 
 be secured. 
 
 The Terms Employed. A cooperator is one who is 
 a member of a cooperative association and actively inter- 
 ested in its welfare. A shareholder is a person who 
 owns one or more shares of the capital stock in a coop- 
 erative society. This term is preferable to "stock- 
 holder," the latter being universally employed by capi- 
 talistic corporations. Interest is the amount paid for 
 the use or hire of capital. Dividend is the rebate to 
 members on their purchases or sales, or on their labor, 
 and should not be confounded with the same term used 
 to indicate the interest paid on stock in capitalistic cor- 
 porations. The cooperative corporation is best termed a 
 society, or association, in contradistinction to the mean- 
 ing usually attributed to the word corporation. 
 
 Cooperative Frauds. One of the strongest evi- 
 dences of the practical merit of cooperation is the extent 
 to which the principle is applied under false pretenses 
 or in a fraudulent manner. Some merchants advertise 
 their store as "cooperative" simply to mislead the pub- 
 lic and attract patronage, a comparatively harmless 
 trick. All sorts of humbug schemes are also worked in 
 the name of cooperation. Prominent among these at 
 the present day are many of the benefit associations, 
 assessment endowment orders, numerical bond schemes 
 and the like. This whole tribe of "fake" enterprises 
 that promise two dollars for every one paid in are swin- 
 dles or lotteries, and libel cooperation by attempting to 
 ally themselves to it. The reader should not allow such 
 humbugs to either blind his eyes to the merits of genuine
 
 20 HOW TO COOPERATE. 
 
 cooperation or prejudice his mind against its practi- 
 cability. 
 
 Apply to the arguments in favor of any of these fraud- 
 ulent societies the principles underlying the success of 
 legitimate business, and of true cooperation as herein 
 outlined, and their nature will soon be exposed. As 
 cooperation progresses, it will be possible to secure uni- 
 form laws in each State for the registry, regulation and 
 protection of legitimate cooperative corporations. Such 
 statutes will prescribe the kind of corporation that may 
 employ the term ''cooperative" in its title, and exclude 
 all others from this privilege, as the English law does 
 so well. 
 
 Advantages of Cooperation. In general we may 
 sum up by saying that 
 
 1. The greatest advantage of cooperation is that it 
 enables "the common people" as Abraham Lincoln 
 used the term to help themselves, 
 
 2. It promotes thrift, sobriety, morality, neighborli- 
 ness, kindness, courtesy, intelligence, self-thinking and 
 good citizenship. 
 
 3. It can adapt itself to secure its advantages to ''all 
 sorts and conditions of men, including men of various 
 nationalities." 
 
 4. It interferes with no private rights or individual 
 opinions. 
 
 5. It substitutes the beneficence of cooperation for 
 the warfare of competition. 
 
 6. It pays labor fairly, adds to savings and yields a 
 reasonable hire to capital. 
 
 7. It enables the people to govern and divide their 
 earnings instead of having capital rule industry and 
 absorb the profits thereof. 
 
 8. It converts the love of money and the power of 
 the "almighty dollar" into the greatest of human agen- 
 cies for the amelioration of society.
 
 WHAT COOPERATIOK IS AKD IS NOT. 21 
 
 9. It " begins in mutual help, with a view to end in 
 a common competence." 
 
 10. It avoids the fallacy of ''equal division of une- 
 qual earnings," but rewards according to merit. 
 
 11. It means "concert for the diffusion of wealth." 
 
 12. It is not philanthropy, neither is it mendicant, 
 servile or offensive, yet possesses the spirit of charity 
 without sacrifice of practical utility, 
 
 13. "It touches no man's fortunes ; it seeks no plun- 
 der; it causes no disturbance in society; it gives no 
 trouble to statesmen ; it need enter no secret associa- 
 tions ; it needs no trades-unions to protect its interests ; 
 it contemplates no violence ; it subverts no order ; it 
 envies no dignity ; it expects no gift nor asks any favor ; 
 it keeps no terms with the idle and it will break no faith 
 with the industrious." 
 
 14. It uses circumstances to advance its principles, 
 instead of wasting energy to advance its principles 
 against circumstances. 
 
 15. It insures against mistakes by educating cooper- 
 ators to a clear idea of what they are doing, uniting such 
 thought with action. 
 
 16. It gives men and women a knowledge of busi- 
 ness they could not otherwise obtain. 
 
 17. It enables men to get out of debt and to keep 
 out of debt, and correspondingly alleviates other forms 
 of distress. 
 
 18. It creates a field for individual energy and 
 security for its reward while avoiding the warfare of 
 competition. 
 
 19. It is really the only way in which the masses 
 can advance. 
 
 20. It promotes sound sense, good temper and good 
 will. 
 
 21. It reduces expenses, bringing producer and con- 
 sumer together, giving the former a fair profit, while
 
 22 HOW TO COOPERATE. 
 
 furnishing the latter at a reasonable price articles which 
 are honest in quantity and quality. 
 
 22. It is equity in business, and it makes equity pay. 
 
 23. It is a definite, practical thing, all of whose 
 principles and parts can be brought into view and under- 
 stood at once. 
 
 24. It recognizes capital as an expense, whose hire is 
 to be paid, but after this (like other expenses) is met, 
 "labor by brain or hand is the sole claimant of profits." 
 
 25. It delivers the public from the middlemen, cap- 
 italists and monopolists who would make the laborer 
 work for the least and the consumer pay the utmost. 
 
 26. It makes saving attractive, easy and inevitable, 
 without self-denial or effort on the part of the individual. 
 
 And finally, to quote more fully and literally its dis- 
 tinguished apostle (Holyoake), "Cooperation was bom 
 of the feeling that at best unmitigated competition was 
 but organized war, and though war had its great con- 
 quests, its bards, its proud associations and heroic mem- 
 ories, there was murder in its march; and humanity 
 and genius were things to blush for, if progress could 
 not be accomplished by some nobler means ; what an 
 enduring truce is to war, cooperation is to the never- 
 ceasing conflict between Labor and Capital it is the 
 Peace of Industry."
 
 CHAPTEE II. 
 
 THE HISTOET OF COOPBEATION. 
 
 The Early Period. "It is cooperation which is 
 ancient; it is competition which is new." Ancient his- 
 tory mentions nations that held the land in common 
 and divided the produce, and others that divided the 
 land and stored the produce in common. The early 
 period of the modern idea of cooperation dates back to 
 Robert Owen, who was born in 1771 in Wales. He be- 
 came a great cotton-spinner, and at New Lanark con- 
 ducted a scheme of profit-sharing and improvement for 
 his help that gave a marked impulse to work in this 
 direction. He proposed a complete reorganization of 
 society. Then followed a period of enthusiasm in coop- 
 erative distribution in England. It went so far as to 
 devise labor exchanges in 1833, where receipts for labor 
 passed as money and as the standard of values. Then 
 cooperation ran in the line of community life, and later 
 looked to state aid and socialism. Many stores were 
 organized during this early period, but most of them 
 went down under mismanagement and a failure to recog- 
 nize the principle of cooperation. 
 
 The Common Idea in England at that time of a 
 cooperative store was the idea that still prevails in the 
 popular mind in the United States. This idea is that a 
 few persons get together in a more or less business-like 
 way usually less subscribe a small capital, and with it 
 buy at the lowest wholesale prices a stock of such goods 
 as the subscribers most require. These goods are then 
 retailed to the members of the company at cost, thus 
 
 23
 
 24 HOW TO OOfiPEEATE. 
 
 cutting prices and arousing the ire, jealousy and compe- 
 tition of the regular merchants. Not only this, but the 
 goods are often sold on credit, and the person having 
 charge of the store is supposed to work for nothing, giv- 
 ing his time as evidence of his devotion to the cause. 
 The result is that the store constantly runs behind, the 
 more business it does the poorer it is, its capital con- 
 stantly dwindles, and it finally has to wind up. Because 
 it cuts retail prices, such a "cooperative" store compels 
 the regular merchants to put down their prices. Then, 
 when people find that they can buy just as cheap at reg- 
 ular stores, and get credit besides, they think there is 
 no object in trading at the cooperative store, and so 
 leave it. Thus those who don't put any money into the 
 cooperative enterprise get just as much benefit out of it 
 as those who back it up with their capital. Moreover, 
 the accounts of such stores are often loosely kept, and 
 are zealously guarded from the members and the public. 
 The patrons thus get an idea that the directors, mana- 
 ging committee or superintendent of the store, are put- 
 ting money in their own pockets that properly belongs 
 to the cooperators. Thus distrust breeds other troubles 
 and hastens the final failure. The store breaks up, and 
 the local press and public echo the cry, "I told you so, 
 cooperation is a failure." These critics entirely overlook 
 the fact that such procedure is not genuine cooperation, 
 and is doomed to failure from the start. 
 
 The True Principle. The above conception of 
 cooperation failed, after half a century's experience in 
 England, just as it has always failed in the United 
 States. It was not until 1844 that the true principle of 
 cooperation was discovered the feeding of cooperation 
 on its profits. Then it was that a few weavers started 
 the Equitable Pioneers' cooperative store at Kochdale, 
 England, with only one hundred and forty dollars cap- 
 ital, which had been accumulated by the laborious sav- 
 ings of pennies.
 
 THE EISTOBT OF COdPBBATIOlT. ^ 
 
 They originated the plan now known as the Eochdale 
 system, in which each person was limited to one vote, 
 electing directors, by whom the business is conducted. 
 Only such goods as are of standard quality and in con- 
 stant demand by the members are bought, and sold to 
 members for cash at the ruling retail prices. Cash pay- 
 ments are invariably required, and fair prices main- 
 tained. A record is kept of purchases. The profits are 
 divided quarterly. After setting aside certain sums for 
 interest, depreciation, reserve and education, the bal- 
 ance of the profit is paid as a dividend on the amount 
 of purchases. The dividend thus received by each 
 member is placed to his credit against further shares of 
 the capital stock until the whole number of shares is 
 made up to which any one person is entitled. After 
 such shares have been paid up, the dividend on pur- 
 chases is paid in cash at the end of the quarter or may 
 be left in the treasury as loan or share capital. Thus the 
 savings effected are constantly invested in the business. 
 This feeding it on profits gives cooperation capital and 
 stability, while affording a safe and profitable bank for 
 the members' savings, and enables the society to grow 
 and increase its business and usefulness. 
 
 Growth of the Principle By this plan of accumu- 
 lation of profits and applying them to the development 
 of the business, the Rochdale Pioneers grew in number, 
 strength, wealth and usefulness. People in other towns 
 imitated this excellent example. Cooperative stores 
 increased and multiplied. The poorest people were 
 thus able to make and save. Progress was at first slow, 
 but always steady. 
 
 The history of the development of cooperation in Eng- 
 land reads in many respects like a romance. The small 
 stores constantly added to their capital and became more 
 helpful. Their doings are reported in full to the stock- 
 holders at quarterly meetings, the reports accounting
 
 26 HOW TO COOPERATE. 
 
 for every penny. The original society established the 
 precedent of setting aside two and one-half per cent of 
 its net profits for an educational fund, a plan which the 
 most successful societies have ever since followed. 
 These societies now own valuable real estate, buildings, 
 stores, steamboats and fixtures, maintain numerous lec- 
 ture courses, reading rooms, extensive libraries, classes, 
 etc. So successful has cooperation been that a serious 
 question now before these societies is the best use to 
 make of their surplus capital. One society invested 
 1300,000 in foreign securities and lost it all, but instead 
 of complaining charged it off to profit and loss and went 
 right ahead. The strongest of these associations to-day 
 are those which, like the Rochdale Pioneers, made the 
 humblest beginning. 
 
 Its Marvelous Success Starting in 1844 with 28 
 members and $140 capital, the Equitable Pioneers' Soci- 
 ety, at the close of 1890, had 11,352 members, a capital 
 of 11,811,790, and in that year made profits of $238,820 
 on a total business reaching $1,352,915. It has 23 
 branch stores besides the central one, a library of 15,000 
 volumes, 19 newsrooms, and numerous classes in the sci- 
 ences and industrial arts. 
 
 The Rochdale Pioneers spared no effort to spread 
 abroad their principles and methods. Their example 
 was quickly imitated. Mismanagement and the absence 
 of sufficient legal safeguards caused many failures at 
 first. Gradually, however, laws were obtained equally 
 as favorable to cooperative societies as to joint-stock cor- 
 porations. The cooperators met in annual congress to 
 exchange views, and later organized a central board and 
 cooperative union, with branch sections, to facilitate the 
 organization of cooperative effort and its proper man- 
 agement. The result is that during the last thirty years 
 failures in cooperative stores in England have been less 
 than in commercial enterprises as usually conducted.
 
 THE HISTORY OF COOPEEATIOlf. 
 
 27 
 
 Nor is the Rochdale society the largest of the retail 
 stores. That at Leeds, England, has over 26,000 mem- 
 bers, with $1,520,000 capital, making annual sales of 
 $3,000,000, and paying an average dividend on the pur- 
 chases of over 11 per cent. Then there are other socie- 
 ties that run down to 25, 50 or 100 members, and from 
 that up. In all there were just 1,400 of these distribu- 
 tive societies or cooperative stores for retailing family 
 supplies in Great Britain at the end of 1889, exclusive 
 of the numerous branch stores operated by many of the 
 societies. Their members numbered 963,954. Their 
 share capital was $48,389,935 ; loan capital or deposits, 
 $5,106,470; reserve fund, $1,995,235; total capital, 
 $55,491,640. Their assets included goods and stock on 
 hand to the value of $14,817,795; the value of land, 
 buildings and fixed stock was $21,515,030; their invest- 
 ments to the end of 1889 were $23,617,905, besides which 
 they had allowed for depreciation during the year of 
 $887,335, making the total assets $60,838,065. Owing 
 to the previous liberal charging off for depreciation, 
 the market value of these assets was much more than 
 this sum. 
 
 The latest progress of cooperation in England was 
 reported at the Cooperative Congress held at Lincoln, in 
 May, 1891, the returns covering both distributive and 
 productive societies, and making the following com- 
 parison : 
 
 No. of societies 
 
 Members 
 
 Share capital 
 
 Total sales , 
 
 Net profits for year , 
 Amount Invested 
 
 1890. 
 
 1889. 
 
 Irv- 
 crease. 
 
 Inc 
 
 % 
 
 1,554 
 
 1,516 
 
 39 
 
 2.6 
 
 1,117,055 
 
 1,054,996 
 
 62,059 
 
 5.8 
 
 $61,309,760 
 
 $55,099,670 
 
 $5,310,090 
 
 9.5 
 
 216,001,595 
 
 201,127.030 14,874,565 
 
 7.3 
 
 $20,850,190 
 
 $18,877,320 $1,972,870 
 
 10.4 
 
 $31,484,820 
 
 $27,043,110 
 
 $4,441,710 
 
 16.4 
 
 The Business and Profits These 1,400 distribu- 
 tive societies in 1889 sold goods to the value of $135,- 
 645,960. Their operating expenses were $7,589,570, or
 
 28 
 
 HOW TO OOdPEBATB. 
 
 about 5^ per cent on the sales. . Their total net profits 
 amounted to 117,133,490. 
 
 Five per cent interest on the total capital invested 
 required $2,774,582, besides which there was set aside 
 for educational purposes 1132,885, for charity $43,745, 
 and for the support of the central board and propaganda 
 $19,710, a total of $2,971,122. This left $14,162,368 as 
 the amount paid in dividends on purchases of over 
 $130,000,000, or nearly 11 per cent. That is to say, 
 while some of these cooperative stores paid more and 
 others less, on the average the whole 1,400 cooperative 
 retail societies returned to their patrons about eleven 
 
 Fig. 1. Central Store of the English Wholesale CoSpebativb 
 Society. Business nearly $40,000,000 annually. 
 
 cents for every 100 cents expended in purchases at these 
 stores. Besides this, 5 per cent was paid on capital, 
 liberal grants made to education and charity, and great 
 sums passed to reserve or charged off for depreciation. 
 Had the total net profits been applied to capital, it 
 would have earned over 30 per cent. 
 
 The Wholesale Societies As the cooperative re- 
 tail stores increased in number, the advantages became 
 apparent of a central agency through which all the local 
 stores might buy their goods. The English Wholesale
 
 THE HISTOET OP COOPERATION. 29 
 
 cooperative society was therefore organized in 1863, and 
 began business the next year. It first operated on a 
 commission basis, but soon adopted the usual plan of 
 buying at one price and selling at another, dividing the 
 profits to the societies in dividends on purchases. Its 
 capital is in shares of twenty-five dollars ; each local 
 society takes in its own name one share for each ten 
 members, paying twenty-five cents on application, and 
 allowing the profits on its purchases to accumulate until 
 the shares are paid up. Societies are entitled to one 
 delegate to the Wholesale's quarterly meetings for each 
 five hundred members, each delegate having one vote. 
 A general committee of sixteen governs the central estab- 
 lishment of the Wholesale at Manchester, and commit- 
 tees of eight each manage the branches at London and 
 Newcastle. The latter each send a representative to the 
 general committee. The elections of committee members 
 are by voting paper, societies being entitled to as many 
 votes as they are allowed delegates. Not more than one 
 member of a society can be a member of the committee. 
 Quarterly meetings are held at the branches and at the 
 central ; a majority of the votes of all three meetings 
 are required to carry a resolution. 
 
 The English Wholesale has assumed enormous propor- 
 tions. Besides its two selling branches it has sub- 
 branches at Leeds and Bristol and buying branches in 
 various parts of the United Kingdom, and at New York, 
 Copenhagen and Hamburg. It also conducts extensive 
 manufactures of biscuit and confectionery, soap, boots 
 and shoes, woolen mills and tailoring establishments. 
 A special tea and coffee branch at London sells over two 
 million dollars' worth annually of these staples. The 
 amount of trade done with foreign countries direct dur- 
 ing the three months ended Sept. 27, 1890, was nearly 
 $2,500,000, of which over $600,000 was paid for Ameri- 
 can cheese, bacon, hams, flour, lard, tallow, sugar.
 
 30 
 
 HOW TO COOPERATE. 
 
 canned meats and tomatoes, a id over $1,000,000 to Den- 
 mark for butter, eggs, bacon and oil. The Wholesale 
 runs six steamers for the direct transportation of its 
 goods between England and the Continent. Starting in 
 1864 with ^12,275 capital contributed by retail societies 
 that had 18,337 members, its sales were over $250,000 
 in the first thirty weeks, since which time its marvelous 
 progress may be inferred from the following comparisons : 
 
 No. $25 shares taken up. 
 No. of members of socie- 
 ties holding shares 
 
 Sliare capital 
 
 Loans and deposits 
 
 Reserve funds 
 
 Insurance funds 
 
 Reserved expenses 
 
 Total capital 
 
 Amount of net sales for 
 
 the year 
 
 Expenses of distributive 
 
 departments 
 
 Total net profits 
 
 Transferred to reserve 
 
 and insurance fund.. : 
 
 18,337 
 $12,275 
 
 $12,275 
 259,285 
 
 1,735 
 1,335 
 
 1874 
 
 13,899 
 
 168.985 
 $240,630 
 
 $739,745 
 
 8,065 
 11,780 
 
 1,000,220 
 
 8,184,750 
 
 105,735 
 71,165 
 
 4,610 
 
 1884. 
 
 45,099 
 
 459,734 
 $1,035,400 
 
 2,474,200 
 
 125,630 
 
 121,620 
 
 49,940 
 
 3,806,790 
 
 23,376,855 
 
 351,715 
 272,455 
 
 32,155 
 
 1889. 
 
 72,399 
 
 679,336 
 $1,711,090 
 
 3,611,605 
 
 291,790 
 
 597,705 
 
 45,985 
 
 6,258,175 
 
 35,144,720 
 
 689,245 
 509,920 
 
 94,935 
 
 1890. 
 
 92,572 
 
 721,316 
 $2,170,085 
 
 4,124,870 
 
 242,725 
 
 776,155 
 
 58,475 
 
 7,372,330 
 
 37,145,365 
 
 633,945 
 634,895 
 
 104,610 
 
 The totals of the Wholesale's business from October 1864 to Decem- 
 ber 27, 1890, are: sales, $387,387,045; expenses, $5,911,340; net profits, 
 $5,143,245: exclusive of reserve and insurance funds amounting to 
 $901,310. 
 
 The Scottish Wholesale, started in 1868, now has over 
 $2,500,000 capital, with sales of upward of $12,000,000 
 annually and profits of over $300,000. The English and 
 Scottish societies unite in publishing the Wholesale So- 
 ciety's Annual, which for 1891 is illustrated with pic- 
 tures of the great warehouses, stores, factories, steam- 
 ships and officials of the societies, and gives a summary 
 of the finances of all the different departments of the 
 business. Just 128 large pages are required for this 
 information alone. The quarterly reports of the Whole- 
 sale make a bulky document of thirty pages, each 10x17 
 inches in size, with itemized tabular accounts of the 
 business in general, by departments, and with each of 
 the 1000 or more local societies to which it sells. The
 
 THE HISTOEY OF COOPERATION. 
 
 31 
 
 character of the management is shown by the fact that 
 the losses from bad debts have been only $45,000 on a 
 business by the two Wholesales of over $230,000,000. 
 
 The profits reported do not fully show the usefulness 
 of these great agencies, for they wholesale at as small an 
 advance over actual cost as is consistent with safety, 
 thus making their profits as small as possible but effect- 
 ing great savings to the retail stores on first cost of goods. 
 
 A Birds-Eye View of Cooperation in England, 
 Ireland, Scotland and Wales from 1861 to 1890 inclusive 
 is an impressive sight, as appears from the following 
 table (official figures, the computed at $5) : 
 
 Year. 
 
 Societ's 
 makUuf 
 Returns 
 
 Mem- 
 bers. 
 
 Share 
 Capital. 
 
 Loan 
 Capital. 
 
 Trade. 
 
 Profit. 
 
 1861 
 
 
 48,184 
 
 $1,666,450 
 1,553,655 
 
 
 $7,560,586 
 11,745,275 
 
 
 1862 
 
 ' 450 
 
 91.502 
 
 '$272,260' 
 
 $831,510 
 
 1863 
 
 460 
 
 108;588 
 
 2,867,910 
 
 367,715 
 
 13,133,705 
 
 1,068,115 
 
 1864 
 
 505 
 
 129,429 
 
 3,420,910 
 
 445,610 
 
 14,183,030 
 
 1,122,300 
 
 1865 
 
 867 
 
 148,586 
 
 4,096,835 
 
 536,315 
 
 16,869,235 
 
 1,396,130 
 
 1866 
 
 915 
 
 174,993 
 
 5,231,550 
 
 590,115 
 
 22,313,380 
 
 1,861,535 
 
 1867 
 
 1,052 
 
 171,897 
 
 7,375,995 
 
 683,670 
 
 30,005,765 
 
 1,992,890 
 
 1868 
 
 1,242 
 
 208,738 
 
 10,138,880 
 
 920,815 
 
 40,565,360 
 
 2.127,710 
 
 1869 
 
 1,300 
 
 220,000 
 
 10,000,000 
 
 950,000 
 
 40,500,000 
 
 2,500,000 
 
 1870 
 
 1,375 
 
 249,113 
 
 10,171.305 
 
 985,640 
 
 41,012,330 
 
 2,777,175 
 
 1871 
 
 746 
 
 262,188 
 
 11,529,755 
 
 1,077,765 
 
 47,187,355 
 
 3,353,605 
 
 1872 
 
 748 
 
 300,931 
 
 13,928,885 
 
 1,722,545 
 
 56,942,950 
 
 4,038.740 
 
 1873 
 
 980 
 
 387,701 
 
 17,564.810 
 
 2,488,750 
 
 78,312.265 
 
 5,595,115 
 
 1874 
 
 1,026 
 
 411,252 
 
 19,518,040 
 
 2,934,860 
 
 81,791,390 
 
 6.130,050 
 
 1875 
 
 1,163 
 
 479,284 
 
 23,504,950 
 
 4,223,100 
 
 80,440,385 
 
 7,126,335 
 
 1876 
 
 1,163 
 
 507,857 
 
 26,520,095 
 
 4,598,810 
 
 99,548,495 
 
 8,706,190 
 
 1877 
 
 1,144 
 
 528,582 
 
 27,439,795 
 
 5,366,325 
 
 106,870,065 
 
 9,500,805 
 
 1878 
 
 1,181 
 
 560,703 
 
 28,651,090 
 
 4,363,430 
 
 105,641,570 
 
 9,089,715 
 
 1879 
 
 1,169 
 
 573,084 
 
 28,739,205 
 
 7,470,215 
 
 101,828,010 
 
 9,747,670 
 
 1880 
 
 1,183 
 
 6M,063 
 
 31,160,465 
 
 6,706,450 
 
 116,241,570 
 
 7,89<,365 
 
 1881 
 
 1,230 
 
 642,783 
 
 34,686,420 
 
 7,417,915 
 
 124,630,025 
 
 9,897,880 
 
 1882 
 
 1,145 
 
 654,038 
 
 36,446,795 
 
 7,319,795 
 
 132,867,755 
 
 10,534,790 
 
 1883 
 
 1,165 
 
 681,691 
 
 37,504,175 
 
 7,692,720 
 
 140,446,550 
 
 11,620,155 
 
 1884 
 
 1,264 
 
 849,615 
 
 41,025,365 
 
 8,585,250 
 
 146,476,ia5 
 
 13,2<)3.2.30 
 
 1885 
 
 1,288 
 
 803,747 
 
 43,998,765 
 
 9,135,545 
 
 149,413,395 
 
 14,418.805 
 
 1886 
 
 1,296 
 
 835,200 
 
 46,487,530 
 
 9,998,290 
 
 156,268,785 
 
 14,a51.715 
 
 1887 
 
 1,291 
 
 896,910 
 
 49,088,9.36 
 
 10,222,490 
 
 183,486,265 
 
 15,,34<i,;M0 
 
 1888 
 
 1,369 
 
 943,949 
 
 51,919,410 
 
 11,412,595 
 
 180,026,175 
 
 16,524.215 
 
 1889 
 
 1,515 
 
 1,054,996 
 
 .55,999,670 
 
 12,379,425 
 
 201,127,030 
 
 18,877..320 
 
 1890 
 
 1,554 
 
 1,117,055 
 
 $61,309,760 
 
 $13,001,600 
 
 $216,001,595 
 
 $20,8.')0.1iK) 
 
 Total I $2,743,436,440 | $233,059,495 
 
 Cooperative Production. Aside from the great 
 mills and factories conducted by the two wholesale soci- 
 eties, there were in Great Britain at the end of 1889, 100 
 other societies that made a specialty of cooperative pro-
 
 32 HOW TO COOPERATE. 
 
 duction or manufacture in some form, including hosiery, 
 clothes, twine, watches, printing, nail-making, stone- 
 workers, flour mills, hardware, implements, machinery 
 and engines, boots and shoes, locks, etc. These socie- 
 ties had 25,839 members and a total capital of $4,319,890, 
 with land, machinery, investments and other assets to 
 the amount of 14,078,225. They produced and sold in 
 1889 goods to the amount of $9,718,560, with expenses 
 of $831,535, and their total net profits were $429,015, 
 or 10 per cent on the capital invested. 
 
 Progress of Cooperation in the United States. 
 Aside from profit-sharing in the fisheries, cooperation in 
 the United States began in 1842-7, with the attempt to 
 form a cooperative commonwealth at Brook farm, near 
 Boston. It was the manifestation in America of the 
 same theories of social amelioration that were showing 
 themselves in the organization of similar communities 
 in England and on the Continent at the same time. 
 This was followed by the Workingmen's Protective 
 Union, which in 1850 had 106 divisions in Massachu- 
 setts alone, through which members bought their sup- 
 plies at the lowest possible prices. It is stated that 
 within a few years the number of these stores was over 
 700 throughout New England and the Middle States, 
 and the sales in 1855 from 63 divisions of the New Eng- 
 land union amounted to over $1,000,000. But the 
 stores were not incorporated, and, not being fed on their 
 profits, gradually failed, the break-up being hastened by 
 the uncertainty of prices and the opening of the civil 
 war. Such a system of stores based on selling goods at 
 cost, and thus underselling all other stores, could not 
 be maintained. A few of the stores thus organized still 
 exist, but no longer do business for the fun of it. 
 
 Then came the Patrons of Husbandry, or the Grange. 
 Founded in 1866, this order reached mammoth propor- 
 tions early in the '70's. It is to-day the oldest and most
 
 THE HISTORY OF COOPERATION. 33 
 
 conservative, if not the most powerful, of our farmers' 
 organizations. Flushed with the success of unparalleled 
 growth, the Grange undertook to establish cooperative 
 stores throughout the country. But the membership 
 was not ready for cooperation. These efforts were 
 mostly operated on the plan of the union stores just 
 described, the goods being sold at wholesale prices as 
 nearly as possible. This was putting in practice the 
 common idea of cooperation outlined in the second para- 
 graph of this chapter. It was but natural that whole- 
 sale failure should ensue, although a few so-called grange 
 stores still survive. These are either now managed as 
 joint-stock enterprises or on the Kochdale system. 
 The most successful are in Texas and Kansas, noted 
 elsewhere, while others are mentioned in the Appendix. 
 The Grange inaugurated the system of trade discounts, 
 whereby the members secured goods at reduced prices 
 for cash by concentrating their orders on certain stores. 
 Enormous savings were thus effected, and prices of im- 
 plements and manufactured articles were permanently 
 reduced by this system. Taking the country as a whole 
 the farmers saved millions upon millions of dollars 
 through the grange system of discounts. But this sys- 
 tem is, at best, only temporary, and becomes more un- 
 satisfactory the longer it is tried. It provides no means 
 whatever for combining and utilizing the savings effected. 
 The Sovereigns of Industry became prominent in the 
 Eastern States in 1874-8. It claims to have been the 
 first organization to push the Rochdale plan of coopera- 
 tion, but few of the stores lived up to this system. The 
 old idea of selling goods at cost or on credit wrecked 
 most of the Sovereign stores, although a few organized 
 under these auspices still exist. One of the most suc- 
 cessful of these is at Lewiston, Maine, the example of 
 which led to the organization of the Lisbon Falls coop- 
 erative association, whose store is shown herewith. 
 3
 
 34 
 
 HOW TO COOPERATE. 
 
 In these later days the Farmers' Alliance is practicing 
 the Grange system of trade discounts on an extensive 
 scale, and establishing State business agents to purchase 
 supplies for its members at a small commission for cash. 
 In several States the alliances are trying to raise a capital 
 to facilitate the work of their business agent or ex- 
 change, but the commission plan is the one usually 
 
 Fig. 2. Stobe and Block of the Lisbon Falls (Maine) Coopera- 
 tive Association. 
 
 adopted, and no attempt is made to capitalize profits 
 and thus insure the permanency of the work. An ef- 
 fort in this direction was made by the Texas Farmers' 
 Alliance exchange at Dallas, but it appears to have been 
 conducted on credit and without due attention to busi- 
 ness principles, and therefore failed disastrously. It 
 has since been reorganized on a more business-like basis.
 
 THE HISTOKY OF COOPEBATIOK. 35 
 
 and confining its operations to cash transactions is serv- 
 ing a useful purpose in a modest way. 
 
 The Farmers' Mutual Benefit Association of the Cen- 
 tral States, the Patrons of Industry of Michigan and 
 elsewhere, and other farmers' clubs, still practice the 
 system of trade discounts quite extensively. The same 
 plan is worked in a moderate degree by a few of the 
 labor organizations. There have also been numerous 
 more or less connected efforts among farmers to unite 
 in marketing their produce. The most successful have 
 been the associated manufacture and sale of butter and 
 cheese elsewhere described. In many sections the grow- 
 ers of special crops, particularly fruit and truck, have 
 united to secure better transportation privileges and 
 rates, improved prices, etc. 
 
 Cooperation in saving and loaning money, and in fire 
 insurance, has also been extensively practiced from an 
 early date, as appears in the chapters on these topics. 
 
 The progress of women's exchanges for the sale of 
 articles made by women has also been gratifying of late. 
 
 Progress of the True System. Out of all this 
 experience, agitation and education, the true principles 
 of cooperation are beginning to be understood and put 
 in practice. Where properly managed, and adhering 
 strictly to the Kochdale system, cooperative distribution 
 is proving a magnificent success. Some of these suc- 
 cesses are described in the following chapters, and others 
 are quite fully epitomized in the Appendix. The in- 
 structions and methods herein advocated are based on 
 such actual and successful experience, profiting also by 
 the lessons of past failures. 
 
 The reader will therefore see that cooperation is not 
 an untried theory but a practical success, the adapta- 
 tion of which to the wants and necessities of American 
 farmers and workers, producers and consumers, has been 
 permanently demonstrated by our own people in city 
 and country under all sorts of conditions.
 
 CHAPTER III. 
 
 THE COOPERATIVE STOEB. 
 
 The Simplest Form The cooperative store is the 
 most feasible, most practicable and simplest form of 
 cooperative distribution. Of it in particular is true 
 almost every word that has been said in behalf of coop- 
 eration in our opening chapters. The cooperative store 
 is adapted to every locality, large or small, rich or poor, 
 thickly populated or thinly settled. Wherever it is nec- 
 essary to have a store for furnishing household supplies 
 and to cater to the ordinary wants of people, there the 
 cooperative store can flourish if it is only managed right. 
 
 Just What It Is. Like any other store, the one 
 owned by the cooperative society carries a line of goods 
 that the local public are most certain to buy. All sales 
 are made for cash, and one price is charged to all cus- 
 tomers. Under this system the poor man, with a large 
 family, receives the greatest benefit for the more a cus- 
 tomer purchases at his own store, the greater is his 
 share of the profits. In other respects it is managed 
 like stores owned by private capitalists. The distinction 
 between the two is clearly described in the paragraph, 
 "What Cooperation is Not," on Page 15. 
 
 There is this important exception, however : The 
 cooperative store should not condescend to competition. 
 It should not cut prices. Instead of that, it should 
 establish the price of goods in its section at a fair ad- 
 vance over the actual cost of the goods laid down in the 
 store. But the old idea of retailing goods at cost is 
 erroneous, as it deprives the society of profits with which 
 
 36
 
 THE COOPERATIVE STORE. 37 
 
 to increase its business and with which to add to its 
 sinking fund, and therefore to its stability. As previ- 
 ously intimated, most of the stores started on the plan 
 of retailing at just above cost have failed, the most nota- 
 ble exception being the Allegheny County Patrons' Asso- 
 ciation elsewhere referred to. At the same time, the 
 retail prices should be reasonable, so as to help the poor 
 man by saving money on first cost. Then the profits of 
 the business, after making provision for interest, depre- 
 ciation and reserves, can be divided among the members 
 pro rata, according to their paid-up purchases. 
 
 A Model Association. Probably the clearest and 
 best idea of just how to run a cooperative store will be 
 obtained from a complete description of the Arlington 
 cooperative association. After a thorough inquiry, it is 
 evident that this society at Lawrence, Massachusetts, is, 
 beyond question, one of the best patterns of what a true 
 cooperative association should be that the United States 
 affords. 
 
 This is at least true of it as a cooperative store, pure 
 and simple for the Arlington has not undertaken any 
 productive enterprises or commission business. Nor is 
 this high praise in the least invidious or derogatory to 
 other cooperative societies, some of which are fulfilling 
 their purpose most efficiently. 
 
 How it Started As in many other cities, several 
 attempts at distributive cooperation in Lawrence had re- 
 sulted disastrously. The town has some 44,654 popula- 
 tion, the principal industry being the cotton and worsted 
 mills, prominent among which are the Arlington mills. 
 Among the workers in these mills are many English, 
 Scotch and Irishmen, who had been members of cooper- 
 ative societies at their old homes in Great Britain ; yet 
 the peculiar advantages they enjoyed for this re'ason had 
 not been sufficient to insure the success of the early 
 efforts at cooperation in Lawrence.
 
 38 
 
 HOW TO COOPERATE. 
 
 In spite of previous failures, however, some of the 
 most intelligent workers in the Arlington mills discussed 
 the matter in a quiet way. The overseers in the differ- 
 ent departments of the mills men who had worked up 
 from the lowest round and knew thoroughly the wants 
 of the operatives were leaders in the movement, and 
 had the assistance of the treasurer of the company, "Wil- 
 liam Whitman, and also of other gentlemen connected 
 with the counting room of the mills, who freely gave 
 their time and advice. Among them was the super- 
 
 FlG. 3. ABLINGTON'8 HUMBLE BEOINNItrO. 
 
 intendent of the mills, William D. Hartshorne, who 
 was the enthusiastic and capable president of the "coop- 
 erative " for its first three years ; also Charles Wain- 
 wright, the paymaster, who acted as treasurer for the 
 two first years. After a few informal meetings, at 
 which the matter was explained by those best informed.
 
 THE COOPERATIVE STOEE. 39 
 
 subscriptions to the capital stock of the proposed associ- 
 ation were invited, and, after a little more effort, six 
 hundred shares of five dollars each were sold to two 
 hundred and eighty individuals, mostly the practical 
 workers in the mills. 
 
 The subscribers appointed a committee, who took legal 
 advice, and were incorporated July 8, 1884, as the Ar- 
 lington cooperative association, under the cooperative 
 law of Massachusetts, with a capital of $3,000. The 
 association began business Sept. 15 in the small building 
 illustrated in Fig. 3. 
 
 An Humble Beginning The capital was all in- 
 vested in a stock of goods, very little being put into fix- 
 tures. The members were determined to begin small 
 and work up only as success justified. This rule they 
 have faithfully adhered to, and upon tliis rule depends 
 the success of every cooperative association. So deter- 
 mined were the Arlington cooperators to avoid unneces- 
 sary expense and show that for the first year or two the 
 store was devoid of both chairs and desk, soap boxes 
 serving for the former and a board across two barrels 
 answering all the necessities of a desk. For it should 
 be noted that all purchases were for cash and all sales 
 for cash, thus requiring but very little bookkeeping. 
 Tlie officers were men in whom the people had confi- 
 dence, and for the first two years the membership was 
 confined to the Arlington operatives, but at the end of 
 that time the success of the association was so substan- 
 tial that this restriction on membership was removed. 
 
 A Most Instructive Point for would-be cooperators 
 was the quiet way in which the Arlington started. It 
 did not seek notoriety. The meetings and discussions 
 of the workingmen when they were getting ready to 
 organize were not heralded in the local press. The 
 characteristic American habit of rushing into print, of 
 making great promises, of threatening to run out all
 
 40 HOW TO COOPERATE. 
 
 other stores and middlemen, of inaugurating an indus- 
 trial revolution, was studiously avoided. 
 
 The opposice-plun was adopted. Everything was done 
 quietly, modestly, unostentatiously, but with confidence. 
 The cooperators knew what they wanted to do, and did 
 it with as little noise as possible. Satisfied with humble 
 beginnings, they well knew that their reports and bal- 
 ance sheet, and the prices and character of their goods, 
 would be the only advertisement the association would 
 need. This plan disarmed opposition, calmed the fears 
 of private traders, avoided all trouble in buying goods, 
 maintained more active interest on the part of the mem- 
 bers, and, presto ! almost before the public knew it the 
 cooperative association was an established success. 
 
 The By-Laws of the Arlington association, as 
 drawn, are based on those of the Rochdale Pioneers, 
 modified by the practical experience of some of the 
 directors in cooperative work in England, and by their 
 knowledge of the different conditions in this country. 
 While the by-laws of other successful associations in the 
 United States (as printed in the Appendix) vary some- 
 what from the Arlington by-laws, it is to be noted that 
 the latter have been the regulations under which the 
 conspicuous success of the Lawrence cooperators has 
 been achieved. These by-laws, as revised and adopted 
 Jan. 28, 1891, are here printed in full : 
 
 BY-LAWS OF THE ARLIN^GTON COOPERATIVE ASSOCIATION 
 
 Akticlk I. Name. 
 
 Section 1. Tliis association shaU be known as the Arlington Coopera- 
 tive Association. 
 
 Sec. 2. Tlie place or places of business shall be at such location or 
 locations as the association may from time to time determine. AH 
 books of account, securities and documents of tlie association, otlier 
 than such as are required for the carrying on of the same elsewhere, 
 shall be kept at a stated general office at Lawrence, Mass. 
 
 Akticle II. 
 
 The object of this association is to carry on the trade of general deal- 
 ers iniiousehold supplies, on the cooperative plan.
 
 THE COOPERATIVE STORE. 41 
 
 Article III. 
 
 Section 1. Any person, upon approval of the board of directors, may 
 become a member of this association, after being proposed by a mem- 
 ber, paying an entrance fee of ftfty cents and signing a declaration 
 of his readiness to take at least one share of stock, and willingness to 
 conform to the by-laws of this association. Such proposal shall give 
 the person's name, trade and address, and shall be signed by the mem- 
 ber making the proposal, which shall be sent to the clerk with the 
 entrance tee and entered by him in a book kept for that purpose. If 
 approved by the directors, he shall be considered a member, upon 
 payment of at least one dollar, on account of his subscription as other- 
 wise provided. 
 
 Sec. 2. Candidates for membership rejected by the directors shall 
 have the power of appeal through any member to the general meet- 
 ing. Any person rejected shall have his entrance fee returned on 
 application. 
 
 Sec. 3. At the general office a list of members' names, trades and res- 
 idences shall be kept, and no person shall be deemed a member unless 
 his name appears on this list. The names of all persons who under 
 these by-laws cease to be members shall be erased therefrom. 
 
 Article IV. Fuxds and Revenues.. 
 
 Section 1. The permanent capital of this association shall be in 
 shares of five dollars each. Each member of this association can hold 
 from one to two hundred shares. The capital of the association shall 
 be invested by the board of directors in purchase of stock and fixtures, 
 agreeable to the articles of agreement. 
 
 Sec. 2. From the absolute profits, after paying the expenses of the 
 association, not less than ten per cent per annum shall be set aside for 
 a sinking fund, which shall be allowed to accumulate until it amounts 
 to a sum equal to thirty per cent in excess of the capital stock. 
 
 Sec. 3. Interest shall be declared on the capital stock at the rate of 
 five per cent per annum, payable quarterly. The directors shall at any 
 time have power, with the sanction of the quarterly meeting, to reduce 
 the rate of interest. 
 
 Sec. 4. After deducting from the profits the amounts provided In 
 Sections 2 and 3 of this article, and the amount assessed as State and 
 city tax, the remainder shall be divided quarterly in proportion to the 
 amount expended in purchase of goods. Non-members will receive a 
 share of the profits to the extent of one-half of that given to members^ 
 
 Sec. 5. Receipts from entrance fees shall be added to the sinking 
 fund of the association. 
 
 Sec. 6. Interest will commence on the first of each month upon all 
 paid-up shares. 
 
 Sec. 7. No interest will be paid on shares withdrawn before the end 
 of the quarter. 
 
 Sec. 8. Dividends and interest may remain to the credit of the share- 
 holders at their option, and whenever such accumulation amounts to 
 the par value of one share, interest shall be declared according to the 
 provisions of Sec. 6 of this Article, provided that this amount with that 
 of the original shares invested shall not exceed the par value of two 
 hundred shares.
 
 42 HOW TO COOPERATE. 
 
 Sec. 9. Should the directors find that they have more cash in tlie 
 treasury tlian tliey can profitably employ in tlie ordinary business of 
 the association, tliey may, with the sanction of the quarterly meeting, 
 Invest any such portion of the cash in such manner as may be deemed 
 advisable. 
 
 Article v. Officeks. 
 
 Section 1. The oflQcers of this association shall consist of a president, 
 clerk, treasurer, and ten other persons who, with the exception of tlie 
 clerk, shall constitute the board of directors. 
 
 Sec. 2. The clerk, treasurer and eleven directors shall, be chosen 
 annually by the stockholders by ballot and shall hold their office for 
 one year, and until others are chosen and qualified in their stead ; pro- 
 vided that it shall be considered requisite, unless they may be other- 
 wise disqualified, to re-elect one-half of the old board at each election. 
 The president shall be chosen by the board of directors from their 
 number. 
 
 Sec. 3. Candidates for the board of directors and all other officers of 
 the association shall be nominated at the quarterly meeting imme- 
 diately preceding the yearly meeting at which they are proposed for 
 election. Should the number nominated not be sufficient to fill the 
 vacancies the yearly meeting shall elect the required number not so 
 nominated. 
 
 Sec. 4. An auditor shall be chosen annually by ballot. 
 
 Sec. 5. No person shall be eligible for the office of director who has 
 not been a member of the association for at least six months, or be 
 eligible for president who has not been a director twelve months, or if 
 he hold any other office or place of profit under the association ; if he is 
 concerned in or participates in the profits of any contract Avith the 
 association; or if he carries on the same business as the association; or 
 if he has a relative employed by the association. 
 
 Akticle VI. Duties of Officers. 
 
 Section 1. It shall be the duty of the president to preside at all meet- 
 ings of the association and board of directors, and in case of equal 
 division to give the casting vote, besides his own vote as a member. 
 He shall sign all documents or certificates issued by the association or 
 board of directors; shall hold in his possession the bonds of the treas- 
 urer, or any of the employes where bonds are required, and shall 
 perform all other duties usually appertaining to his office. 
 
 Sec 2. It shall be the duty of the clerk to keep a correct record of all 
 business meetings of the association and board of directors, and in case 
 of the absence of the president, to call the meeting to order. He shall 
 keep a correct record of the names and residences of the members, and 
 shall serve all notices ordered by the board; he shall carry on all 
 correspondence and shall attest all documents issued by the association 
 or board of directors, and shall deliver to his successor in office all 
 property in his possession belonging to the association. 
 
 Sec. 3. It shall be the duty of the treasurer to receive all moneys due 
 from members and others, and to disburse the same in payment of 
 claims against the association when approved by an advisory com- 
 mittee. He shall keep such records of business transa<!tions of the 
 association not otherwise provided for by the board of directors, and
 
 THE COOPERATIVE STORE. 43 
 
 shall make a full and complete report at each quarterly meeting of the 
 financial condition of the association. He shall give such bonds for 
 the faitliful performance of his duties as the board of directors may 
 require, and shall deliver to liis successor all books, money, vouchers 
 and other property of the association in his possession. 
 
 Sec. 4. It shall be the duty of the auditor at the close of each quar- 
 ter's business to audit the accounts of the treasurer and other officers, 
 including stock on hand, demanding for this purpose any information 
 he may see fit, and report condition of same at the quarterly meeting. 
 
 Article vil. Management. 
 
 Section 1. The board of directors shall have control of all business 
 carried on by, or on account of, the association, the purchase and sale 
 of goods, the engaging of managers and of all other persons necessary 
 for conducting the business, providing for places of meeting, the rates 
 of payment for work or services done on account of the association! 
 and the regulation of salaries and securities of the managers and 
 employes, to whom it may assign such duties as it shall deem proper. 
 
 Sec. 2. The board of directors shall, with the consent of a general 
 meeting, have power to lease, purchase or erect any building or build- 
 ings for the purpose of the association, and to mortgage, rent or sell 
 such buildings or any part thereof. 
 
 Sec. 3. The board of directors shall meet every alternate Tuesday 
 evening, and shall provide for the detailed work of the business by the 
 appointment of sub-committees. It shall, in all things, act for and in 
 the name of the association, and all acts and orders under the powers 
 delegated to it shall have like force and effect as if they were acts and 
 orders of a majority of the members of tlie association at a general 
 meeting thereof. Every question at such meeting of the board shall be 
 decided by a majority of votes cast. Seven members of the board shall 
 constitute a quorum. 
 
 Sec. 4. The president, at the request of three members of the board, 
 shall call a special meeting thei-eof by giving one day's notice in writ- 
 ing to the clerk; but no business shall be taken into consideration 
 other than that specified in the notice. The board shall convene special 
 meetings of the stockholders at their discretion, allowing three days' 
 notice of the same. 
 
 Sec. 5. The board shall cause the accounts of all business carried on 
 to be regularly entereil in proper books and a quarterly report to be 
 made out covering all business to the end of each quarter which, lo- 
 v;<-tlier with all necessary vouchers, shall be submitted to the auditor 
 i:<it less than seven days previous to such meeting, and shall be printed 
 .iiid distributed to the nieml)ers as early as possible tliereaft-er. 
 
 Sec. 6. All n)eetings of the board of directors shall be open to the 
 atteiidance of other members, but no such member shall take part in 
 its discussions. 
 
 Artic LE VIII. Meetings. 
 
 Section 1. The general meetings of tills association will be held 
 quarterly on the last Wednesday of January, April, July and October 
 of each year. 
 
 Sec. 2. The annual meeting of this association for the election of 
 ofllcers shall be held on the last Wednesday of April of each year.
 
 44 HOW TO COOPERATE. 
 
 Sec. 3. The president sliall cause a special meeting of the association 
 to be called upon a written request signed by ten members of the 
 association. At such meeting no other business shall be transacted 
 than that named in such requisition. 
 
 Sec. 4. Notices of all meetings sliall be posted by the clerk in a con- 
 spicuous place in the store or stores, three days previous to the same. 
 In the case of special meetings, such notice shall state the object of the 
 meeting. 
 
 Sec. 6. At all meetings of the association fifteen members shall 
 constitute a quorum for the transaction of business. 
 
 Sec. 6. No subject foreign to the purpose of the association shall be 
 introduced at any of its meetings for business. 
 
 Article IX. General Regulations. 
 
 Section 1. Quarters shall commence on the first of January, April, 
 July and October. 
 
 Sec. 2. All purchases from the association shall be made strictly for 
 cash. 
 
 Sec. .3. Each member of the associ.ition shall be provided with a 
 book of account in which shall be entered a statement of shares held 
 with quarterly dividends and interest. 
 
 Sec. 4. Each purchaser shall be provided with checks or a pass-book 
 at the option of the directors, which shall show the amount of pur- 
 chases on which dividend will be declared. The same to be returned, 
 as provided from time to time by the board of directors. 
 
 Sec. 5. No intoxicating liquors shall be allowed on sale by the 
 association. 
 
 Sec. 6. Any complaint as to quality or prices of goods sold by the 
 association or respecting the conduct of any of its employes, should 
 be made to the directors in writing, signed by the party making the 
 complaint, and such complaint shall be investigated and decided by 
 the board. 
 
 Sec. 7. All sales are to be made at the average retail market price. 
 
 Sec. 8. Eacli stockholder shall be entitled to a certificate of his stock, 
 under the seal of the corjioration, signed by the president and the 
 treasurer. 
 
 Sec. 9. No stockholder shall be entitled to more than one vote in any 
 business meeting of the association. 
 
 Sec. 10. The board of directors may suspend any member from 
 participating in the benefits of the association who persists in conduct 
 injurious to the association, until it shall submit the matter to a stock- 
 holders' meeting, giving the offender three days notice thereof, which 
 meeting shall confirm and extend the action of the directors, or other- 
 wise, as it may think proper. 
 
 Article X. Withdrawals. 
 
 Section 1. Any member of this association desiring to witlidraw from 
 the association the whole or any part of his or her stock shall make a 
 written application to the directors, and within thirty days from the 
 <late of such application the board shall pay or cause to be paid such 
 applicant the amount of shares he may desire to withdraw; but if the 
 board fall to pay or cause tlie same to be paid within thirty days, said 
 applicant may transfer his or her shares to any other member, pro-
 
 THE COOPERAtrVl: STOllE. 45 
 
 vided the member lias not the full number of shares allowed in the 
 by-laws, but in no case shall he transfer his share to persons not mem- 
 bers of the association unless he first obtain consent of the board of 
 directors, which consent shall be signed by the president and clerk 
 and entered on the records of the association. In case a member 
 transfer his share or shares he must surrender his certificate to the 
 board of directors, and the board shall cause a new certificate to be 
 issued to the person to whom he makes such transfer. 
 
 Sec. 2. Any member being in distress may withdraw any shares he 
 may have in the association at the discretion of the board of directors. 
 
 Article XI. Amendments. 
 
 These by-laws shall not be altered or amended unless such alteration 
 or amendment be proposed in writing one meeting previous to action 
 being taken thereon, providing, also, that two-thirds of the members 
 present vote in the affirmative. 
 
 ABTICIiB XII. VACANCIES. 
 
 In case of a vacancy in the offices of clerk, treasurer, auditor, or any 
 of the directors, by resignation or otherwise, a substitute shall be 
 elected at the next quarterly meeting, or at a special meeting called 
 for that purpose. 
 
 Akticle XIII. 
 
 That the duties of the treasurer be so modified as to make him 
 simply custodian of the money and to entail no other bookkeeping 
 than a simple cash account and signing of checks and certificates, with 
 a true rendering of said account when called upon. That the duties 
 of the clerk be made to include all bookkeeping and money transactions 
 with the members required by the a.ssociation, as well as all present 
 duties, and that he be made the executive officer, under the directors, 
 of all duties assigned by them from time to time. That his position 
 be sufficiently remunerated as to insure a perfectly reliable and satis- 
 factory incumbent whose whole attention can be given to the calls of 
 the association, and that he be placed under equal bonds with the 
 treasurer. 
 
 Strong Points of These By-Laws It is to be 
 
 noted that tliere is a distinction (Sec. 1) between a mem- 
 ber and a sliareholder. Each member is entitled to one 
 vote only (Art. I, Sec. 9), but must be a shareholder 
 for six months in order to be a director (Art. V, Sec. 5). 
 The proviso that the president must have been previ- 
 ously a director for at least one year is a further safe- 
 guard to secure the best officers. 
 
 The compulsory reelection of at least one-half of the 
 directors is also wise, as it retains the most efficient men, 
 and guards against a complete overturning by the share-
 
 46 HOW TO COOPERATE. 
 
 holders. Such an overturn is always within the realm 
 of possibility, but must be guarded against, either as 
 specified in Sec. 2, of Art. V, or perhaps still better by 
 electing only one-third of the board annually. In either 
 case, the members can speedily get rid of poor timber on 
 the board, but must keep their best men. It is usually 
 well, in a cooperative society, to elect occasionally one 
 or two new members to the directors, for it is an honor 
 every shareholder may justly aspire to. This policy also 
 maintains closer interest on the part of shareholders and 
 prevents one set of directors from getting the idea that 
 they own the society. The best men on the board never 
 get this idea, poor sticks do. 
 
 It is possible for even the poorest person to become a 
 shareholder (Art. Ill, Sec. 1), for while the full share 
 costs five dollars, only one dollar is actually required 
 down, thus entitling the member to the full dividend 
 on his purchases, which is placed to his dividend until 
 it amounts to five dollars. A.fter that the member can 
 withdraw his dividends or leave them to accumulate to 
 pay for more shares. The articles of agreement referred 
 to in Art. IV, See. 1, are simply the declaration filed for 
 the purposes of incorporation. 
 
 The Sinking Fund. Sec. 3 of the same article com- 
 pels the accumulation of a sinking fund, and is in ac- 
 cordance with the State law of Massachusetts. Such a 
 fund should be insisted upon, however, by every cooper- 
 ative society, even if the State law does not require it. 
 Arlington's sinking fund now (June, 1891) reaches the 
 handsome amount of nearly eight thousand dollars. It 
 is not withdrawable and cannot be taken out of the bus- 
 iness except upon the dissolution of the association. 
 The larger it grows the more interest each member has 
 in the association in addition to his actual holdings of 
 shares. 
 
 We cannot impress too strongly the importance of 
 setting aside at least ten per cent of the net profits for
 
 THE COOPERATIVE STORE. 47 
 
 such a fund. Particularly must this be insisted upon at 
 the start. Increase the sinking fund instead of paying 
 large dividends. Add to the reserve heavily in times of 
 prosperity. Encroach upon it only as a last resort in 
 dire extremity. 
 
 It is also wise to adhere to five per cent interest on 
 capital except in sections of the country where money is 
 so valuable that a higher rate will be only equal to five 
 per cent in the older States. Such a limit as is specified 
 in Sec. 3 of Art. IV is wise because it emphasizes the 
 fact that the object of the cooperators is saving divi- 
 dends on their purchases or goods instead of paying large 
 interest on capital. 
 
 Allowance for Depreciation. Art. IV, Sec. 4, 
 makes no proviso for charging off for wear and tear of 
 fixtures and plant, as is the usual plan in cooperative asso- 
 ciations. The Arlington directors preferred not to have 
 this specified in the by-laws. They have charged off 
 each year at least ten per cent of the first cost of fixtures 
 for depreciation, but find it more convenient to do this 
 when it is easiest rather than be compelled to charge off 
 each quarter one-fourth of such sum. In nine cases out 
 ten, however, directors might not live up to such a vote, 
 so that the by-laws should provide that during the year 
 at least ten per cent on cost should be charged off on the 
 fixture account. 
 
 We want to emphasize this point, for a society can 
 easily deceive itself as to its financial position by not 
 allowing for wear and tear. Up to Oct. 1, 1890, the 
 Arlington had expended for fixtures $10,811, horses, 
 wagons, harness, store fixtures and all appliances used in 
 its business outside of goods and real estate. It had 
 allowed for depreciation up to that date $3,192, and had 
 sold fixtures to the amount of $157. The two together, 
 $3,349, showed the total reduction. This left the inven- 
 tory value of the fixtures at $7,461. Now, if the associ-
 
 48 HOW TO COOPERATE. 
 
 jition spends 11,000 for fixtures this year, the account 
 would be 18,461 on Oct. 1, 1891. But in charging off, 
 the 11,000 would be added to the first cost, making a 
 total of $11,811, and it is ten per cent of this sum, or 
 $1,181 that would be charged off not $846. It takes 
 nerve to do this, but it makes this asset worth far more 
 than it is inventoried at. The property and the money 
 is all there and the association gets the benefit of it. 
 This depreciation must always be allowed for before div- 
 idends are declared. The policy of the Arlington di- 
 rectors has always been not to jeopardize the position of 
 the association for the sake of dividend, but to solidify 
 it as much as possible, so that, in case of any unforeseen 
 circumstances arising, they may always have a good 
 reserve, and a good leeway in the depreciation of their 
 fixtures. 
 
 Educational Fund Neither does the Arlington 
 adopt the Eochdale system of setting aside two and one- 
 half per cent of its net (not gross) profits for the educa- 
 tional fund. The small fund already accumulated for 
 this purpose was derived from picnics. If a society 
 would make an effort to hold occasional entertainments 
 for the benefit of the educational fund it might get 
 more money for this purpose than the two and one-half 
 per cent net would amount to. This plan would also be 
 of great value in keeping up the interest of the members 
 and in promoting and adding to the good accomplished 
 by the educational fund. If the members make some 
 effort to earn money for lectures, literature, etc., on 
 cooperation and kindred topics, they will appreciate such 
 work and derive more benefit from it than if it were 
 forced upon them. 
 
 We insist, however, upon the necessity of having an 
 educational fund and using it properly. Where this is 
 neglected, the members are almost sure to lose, or never 
 comprehend, the true cooperative idea. They fail to
 
 THE COOPERATIVE STORE. 49 
 
 grasp its principles, and only by the best management 
 will their patronage and support be secured. On the 
 other hand, where the educational work is well followed 
 up, the members become better informed, and, after 
 being disciples, soon become apostles of cooperation, 
 advocating it enthusiastically among their friends and 
 bringing them into the fold, and also supporting the 
 store and upholding the officers far more stanchly than 
 the uninformed member ever will do. 
 
 Other Points. Since it is so easy for persons to 
 become members it may be asked, why not omit giving 
 non-members the half dividends on their purchases. It 
 is a cheap and effective way of attracting custom and 
 inducing people to join. Payment of interest only on 
 full shares and paid-up shares and commencing only at 
 the first of the month simplifies accounts. The rule 
 that no member can hold more than two hundred shares 
 prevents the centralization of capital that is so objec- 
 tionable in a cooperative enterprise. 
 
 The Officers. The by-laws relative to officers are 
 specially important. Eleven directors and the treasurer, 
 who is also a director, making a board of twelve mem- 
 bers, are chosen annually by the shareholders by ballot. 
 This board elects one of its number as president, but 
 the board does not elect the clerk, who, according to 
 Art. XIII, is the chief executive officer and manager of 
 the association. This important official is elected by 
 the stockholders, and is amenable only to them, althougli 
 he works under the supervision of the directors. This 
 proviso is wise and useful in two ways : 
 
 First, it places the direct representative of the stock- 
 holders' interest in active control ; second, it makes him 
 sufficiently independent to be free from any undue influ- 
 ences that might be attempted by a "cranky" director. 
 On tlie other hand, the powers of the directors (Art. VII, 
 Sec. 1) are all that could be desired. The duties of the 
 4
 
 50 HOW TO COOPERATE. 
 
 officers are clearly explained, but Articles VI and XIII 
 should be considered together in this connection. 
 
 The giving of bonds by the treasurer and clerk (or 
 manager) and heads of departments is also a measure 
 that should always be insisted upon, as it imparts confi- 
 dence to members who otherwise might be suspicious. 
 Equally important are the safeguards (Art. V, Sec. 5) 
 against weighing down the society with help employed 
 because they are relatives of the directors. 
 
 Work of the Directors. All would-be cooperators 
 should carefully study Art. VII, on management. The 
 value of frequent meetings of the directors and their 
 active supervision of the society's business cannot be too 
 strongly urged. Many societies have failed because the 
 directors were faithless and left the affairs wholly to 
 the manager. There is a constant tendency for direct- 
 ors to neglect their duties, especially where the manager 
 is at all competent. This must always be avoided. 
 
 The directors should each and all be so conversant 
 with the society's affairs that any one of them can, with 
 a little experience, fill positions that might become va- 
 cant suddenly. Only by keeping this point thoroughly 
 in view can a society avoid the fatal mistake of depend- 
 ing wholly upon one man. It is true that the substantial 
 success of the Arlington cooperators is very largely due 
 to its efficient clerk, but he is the last man to claim it, 
 and has always been first and foremost in developing 
 employes or directors who can step into the breach il' 
 necessary. But it is to be kept in mind that no business- 
 can be run by a board of directors ; it must have one 
 executive head. 
 
 An excellent plan to insure prompt attendance at 
 meetings of the directors, and their committees is to 
 print on each quarterly statement a report of the whole 
 number of meetings held during the year or quarter, 
 putting against the name of each director the num-
 
 THE COOPERATIVE STORE. 51 
 
 ber of meetings that he has attended. Thns the share- 
 holder can see at a glance what men are attending to 
 their duties, and will have good cause to remove the 
 tardy ones unless some valid excuse is made for them. 
 
 Frequency of Meetings. Quarterly meetings should 
 always be insisted upon. This requires a quarterly bal- 
 ancing of accounts, a quarterly inventory and a knowl- 
 edge every three months by the officers and members of 
 just how the society stands. There is a tendency to 
 have semi-annual meetings and reckonings, and in some 
 cases annual statements and meetings only are called 
 for. It is argued that since the latter is sufficient for 
 the ordinary corporations of capitalists it ought to be 
 enough for cooperators. 
 
 There are, however, two reasons for quarterly meet- 
 ings, either of which is sufficient. First, they bring the 
 members together and inform them thoroughly as to the 
 progress and position of the society and its business; 
 the members take more interest in Its affairs, and have 
 more confidence in the management and in themselves. 
 The second, an equally grave reason, is that the quarterly 
 reckoning, balancing and inventory, will insure against 
 errors and losses that almost inevitably occur when 
 statements are made up only semi-annually or once a 
 year. 
 
 Even under the simplest system of bookkeeping, the 
 accounts, particularly those of the members' holdings 
 and intei'est, are liable to get confused. The most ex- 
 pert bookkeepers in large corporations are satisfied only 
 with frequent balancing of their accounts. Certainly a 
 cooperative society should find out how it stands at least 
 once in three months, for it often does not employ an 
 expert accountant. 
 
 The provisions for special meetings show that the 
 whole affairs of the association are wholly within the 
 reach and under the control' of the rcembers, a point 
 to be constantly emphasized.
 
 52 now TO COOPERATE. 
 
 The General Regulations. Each paragraph in 
 Art. IX is a model of brevity and a diamond of coopera- 
 tive truth. 
 
 Business can be done strictly for cash, as is shown 
 by the experience of Arlington and other cooperative 
 societies. No cooperative association should be started 
 except on an absolute cash basis. When this principle 
 is departed from, that moment the germ of decay be- 
 gins to develop and constantly grows, until it finally 
 threatens the very life of the cooperative society. Once 
 credit is allowed, it is almost impossible to correct the 
 abuse. Some associations have made the change, and 
 always with the most satisfactory results after the first 
 "kick" on the part of those previously trusted. If 
 there is one thing above all others that we insist upon, 
 it is absolute cash transactions from the start. 
 
 The most practical thing cooperators can do for the 
 temperance cause is to live up to Sec. 5. Sec. 10 is also 
 important. 
 
 The Banking Features. A fundamental difference 
 between the cooperative society and the joint-stock cor- 
 poration is that the holder of shares in a joint-stock 
 company cannot compel the company to buy back his 
 shares. He takes the risk on them, losing if business is 
 such that the value of the stock sinks below par, and 
 gaining if the returns put a premium on the stock. 
 
 It is not so in most cooperative societies, although in 
 States where the statutes do not provide for this point, 
 shares can be transferable or withdrawable as the mem- 
 bers may specify in the by-laws. Usually, however, the 
 people who invest in a cooperative society must have 
 their money if they want it. They must have the priv- 
 ilege of receiving the cash for their shares if they actu- 
 ally need it. Moreover, the capital in a cooperative 
 store earns a fixed rate of interest only, and whatever 
 profit there is above this and other expenses is distribu- 
 ted among the purchasers ,
 
 THE COOPERATIVE STORE. 
 
 53 
 
 IWBHimmmh.-r 
 
 miLWmW'Tm'i^'f'' -r I f ^ 
 
 
 m
 
 54 HOW TO COOPERATE. 
 
 The above by-laws provide in Art. X very carefully 
 for the rights of members who wish to withdraw their 
 capital or the dividends and interest that is placed to 
 their credit. It will be observed that the stock is not 
 transferable except by permission of the directors, but 
 such transfer is unnecessary in practice, because any one 
 who wishes to sell or transfer his stock can surrender it 
 to the association at its par value after notice, while the 
 same can be re-issued to new applicants. The legal 
 limit of this notice is thirty days, but such surrenders 
 have always been accepted practically upon demand. 
 So long as this condition is maintained, it is impossible 
 for the value of the stock to be either more or less than 
 par. Hence the stock of a cooperative society on this 
 system has no speculative value, and the only reason for 
 withdrawing is lack of confidence in the management or 
 necessity for the money. 
 
 The cooperative store can thus do a regular banking 
 business up to the limits of its would-be capital. This 
 gives the store cheap capital, enabling it to keep its ex- 
 penses down, buy goods in the cheapest markets, and 
 thus insure the largest possible dividend or savings to 
 its members. 
 
 It is objected that this withdrawal clause places the 
 business at the mercy of the shareholders, since, in case 
 of a stampede, many of them might desert it. The 
 directors, however, are given sufficient power to avoid 
 such a contingency, while at the same time the with- 
 drawal rights of mernbers under all ordinary circum- 
 stances are maintained. When, however, a society 
 reaches the stage at which the members all want to get 
 out, it will make little difference whether its shares are 
 withdrawable or not. For its success depends upon the 
 management and the confidence the members have in 
 the management. 
 
 The Value of By-Laws. We may add right here 
 that while model by-laws, such as those of the Arlington
 
 THE COOPERATIVE STORE. 66 
 
 association, are highly important, no perfection in this 
 respect will make up for lack of management. That is 
 the real thing upon which success depends. Good by- 
 laws and a few rules lived up to are well enough in their 
 way, but thorough businesslike management is the only 
 thing that will insure success. 
 
 Coupled with this should be a proper attention to 
 their duties and privileges on the part of each member. 
 Each shareholder must do his part to achieve the best 
 success. He should stand by the SQciety, give it all his 
 custom, bring in new members, and promote the coop- 
 erative idea among all with whom he comes in contact. 
 So fully is this appreciated by some of the Arlington 
 cooperators that they deem it sacrilege to buy elsewhere 
 anything they can get at the "Coop," while one family 
 that holds many shares has much company so as to eat 
 more groceries and add to the "divi" (dividend) ! 
 
 Members are encouraged to invest their dividends and 
 interest in more shares, rather than draw it out. By 
 the latter plan, the member usually spends his savings 
 and has nothing to show for them, whereas, by putting 
 them into the business he gets five per cent net on all 
 he saves. How much these savings may be in a year is 
 shown by the dividends of five shareholders selected at 
 random 1216.35, $134.58, $162.71, $174.46, $118.51. 
 These are very substantial savings, the more so since 
 none of the members of each of these five families prob- 
 ably earn over six to twelve dollars per week. 
 
 The Growth of the Arlington Association. 
 Long before the end of three years, the business at Law- 
 rence outgrew the small building in which it was started. 
 A desirable lot was secured on Holly street, and a cheap 
 but spacious and substantial building was erected for a 
 central store, illustrated in Fig. 4. The lot was large 
 enough to permit of a stable and horse shed in the rear. 
 A fine basement was constructed under the main build-
 
 56 HOW TO CO6PERATE. 
 
 ing and provided with steam heating apparatus, a large 
 refrigerator, etc. The whole building was planned to 
 do a large business for the least possible work and ex- 
 pense. Two years later Branch store No. 1 was opened, 
 Jan. 5, 1889; this is rented. About the same time 
 the expensive coal and wood yards, illustrated on Page 
 66, were secured. Just before Christmas in the same 
 
 Fig. 6. bbanch No. 1, ABUKaTOK C!o3pebative Association. 
 
 year Branch No. 2 was opened, it being owned by the 
 association. A large addition is soon to be made to 
 Branch No. 1, but the association built Branch No. 2, 
 which is designed to accommodate a much larger busi-
 
 THE COOPERATIVE STORE. 57 
 
 ness, if necessary, by removing the tenant on the first 
 floor adjoining the store. The association employs 
 twenty-four men, three women, twelve horses, seven 
 delivery wagons and seven coal and wood wagons, also 
 nine sleighs. The clerk and manager is the only salaried 
 official, the president and directors being proud to labor 
 for the good of the cause and the honor of the position 
 (this honor is very highly esteemed), though of course 
 their expenses are paid when they go ofE on business for 
 the association. 
 
 How the Store is Run. The goods are bought in 
 the cheapest markets, at the right times, and in the largest 
 possible quantities. One man, (James A. Coghlin) 
 buys most of the groceries, but the other purchases are 
 mostly made by the clerk. Advantage is taken of every 
 discount for cash, and in other respects efforts are made 
 to buy on the best terms. Thus, this spring the associ- 
 ation bought three thousand tons of coal, before the 
 price was advanced. It was delivered by the train load, 
 and every member of the association was proud to feel 
 that he was a part owner in this large business. The 
 purchases and details of the business are conducted with 
 the assistance of an advisory committee consisting of 
 three directors, who meet weekly, and two of whom at 
 least must approve all bills and vouchers, which must 
 also be approved by the clerk. Thus the cooperative 
 principle of united effort and active supervision is con- 
 stantly practiced. 
 
 Bills for all purchases are paid by bank checks, which 
 are signed by the treasurer and countersigned by the 
 clerk. The heads of the different stores, who receive 
 the goods and sell them, do not know what they cost or 
 how much was bought. The buying is a department of 
 itself, and is not done by those who make the sales. 
 Thus there can be no collusion between the employes to 
 defraud the association in the transaction of its business.
 
 68 HOW TO COOPERATE. 
 
 neither can the buyer ''monkey" with the funds, since 
 goods are paid -for on receipt of bill, which has to be 
 approved by the advisory committee and paid by check. 
 Moreover, the goods received have to be up to the quan- 
 tity and quality called for by the buyer and by the bills. 
 Other societies should profit by this example. 
 
 The employes are young, active men who are well paid 
 and whose pay is advanced as they prove their worth. 
 The idea that the cooperative store is a good place for 
 the relatives of its officials to obtain ''soft jobs" does 
 not prevail with the Arlington cooperators. How well 
 this important point is guarded may be seen from Art. Y, 
 Sec. 5, particularly its concluding clause. No favor- 
 itism is shown, but every employe stands on his own 
 merits. Any other method is unbusinesslike, improper, 
 unjust, idiotic. 
 
 To Become a Member the applicant fills out the 
 blank form on the opposite page, which is obtained at 
 the stores. 
 
 When voted in by the directors, a pass book is given 
 the member, into which all subscriptions to the capital 
 stock will be entered. The pass book is four by six 
 inches in size, containing eight ruled pages. The first 
 cover page bears this inscription : "Arlington Coopera- 
 tive Association, organized Jnly 8, 1884. Stockholder's 
 
 account. No Always bring this book with you 
 
 when you desire to do business with the treasurer." 
 The third page of the cover contains Sections 3 to 9 
 inclusive of Article VI of the by-laws relating to interest 
 and dividends. The first ruled page is headed : "No. . . 
 Arlington Cooperative Association, Dr., to ." 
 
 We will now suppose that the member wishes to make 
 a purchase. He comes to the store, buys what he wants, 
 pays cash for it and gets a yellow check for the amount 
 from the storeman of whom he buys, together with the 
 storeman's memorandum of article and amount. This
 
 THE COOPERATIVE STORE. 59 
 
 [FRONT.] 
 
 The Arlington Cooperative Association. 
 
 To THE BOAED OF DiEECTOBS : 
 
 3Ir 
 
 {Occupation), 
 
 {Address), 
 
 leing desirous of joining this Association, I {a duly rec- 
 ognized member) hereby recommend that he be accepted by 
 the Board as a member, and I hereby enclose fifty cents 
 initiation fee. 
 
 {Signed) 
 
 Date {Address), 
 
 Mis is to certify that I wish to take at least One Share 
 of Stock in the Arlington Cooperative Association, and 
 will agree to conform to the By-Laws of the Association, 
 if accepted. 
 
 Signed, . 
 
 [BACK.] 
 
 77iis is to certify that the applicant herein proposed for 
 membership in the Arlington Cooperative Association 
 
 was by the Board of Directors 
 
 at their meeting held 
 
 Signed, 
 
 Cleric. 
 
 Note. After being accpted by the Board, it will be necessary for the 
 applicant to pay over at least one dollar to secure the credit of mem- 
 bership on the books of the A.ssociation. As soon as the amount is 
 paifl in by instalments, or otherwise, amounts to ^5.00, or tlie dividend 
 credited on purchases reaches this amount, the subscriber is entitled 
 loa Certificate for one Share of .Stock; and may thereafter withdraw 
 full dividend on subsequent purcliases.
 
 60 HOW TO COOPERATE. 
 
 yellow check issues from one of the popular cash regis- 
 tering machines, and contains in black ink a statement 
 of the amount of the purchase, also the number of the 
 check. An almost invisible punch of the letters A. C. A. 
 (Arlington cooperative association) is also made on each 
 check. The paper is a special kind, not used elsewhere 
 in town. It is therefore almost impossible to counter- 
 feit the checks, as the punch and the paper guard 
 against this, while the numbering is a further safeguard, 
 any counterfeit being revealed by a repetition of the 
 number, or bearing a different number from any issued 
 during the quarter. 
 
 Where a store is starting on such a small scale that it 
 cannot afford a cash registering machine, little paste- 
 board or metal checks with the name of the association 
 and 5, 10, 20 and 50 cents printed on them, can be used. 
 The cash registering machine's check is by far the best 
 thing out, superior even to the long tried but more com- 
 plicated systems in England. The register and the 
 storemen's duplicate of memorandum furnished custom- 
 ers have to tally ; thus honesty is insured. These pur- 
 chasers' checks are brought in and exchanged for divi- 
 dend checks of five dollars each ; two dollars or one dol- 
 lar checks are also given for sums less than fiye dollars. 
 These dividend checks are like this : 
 
 ^^C^^i5&3&5SCiiiX*5C*5C!t5'5C-/' "^^C^Xi^^^iX-i-X-iX-^viJ^i^ciSCiJ^ ^^4i5&Xi5ii5G5^55i5CJ5Ci55i5'5<' 
 
 ^^vS^^nS^S^^/^K^n^^^/t^/SS^^i* *^^/^/^A^/i!S/i>S/S^n3S^SS/3>/S^/^^ <y^^^^iSN^S^kMSS^aS^SS^iM^/S^ 
 
 lRLINGTON ig ARLINGTON 1 ARLINGTON 
 
 ^_ j-op.Associat'n| 
 '^. -^ 9-^.uu. if $i.oo. i 
 
 M m Return thit Check m m Return tlils Check m 
 ^ m Quarterly. m m Quarterly. Jg 
 
 Not more than twenty dollars in small checks will be 
 exchanged in any one day for one person, a regulation 
 that is strictly enforced for the convenience of the store 
 men. Otherwise it would be a good deal of work for 
 them to exchange the checks for the heavy purchasers.
 
 THE COOPEEATIVE STORE. 61 
 
 Many goods have to be delivered at the members' houses, 
 but this is done very cheaply, the orders being collected 
 in the morning and the goods delivered in the afternoon. 
 A yellow check for the amount accompany the goods to 
 each purchaser, which is surrendered only for cash. 
 
 On the date advertised for the receiving of check?, 
 the checks for dividend (as illustrated above) and the 
 members' pass books are presented at the clerk's desk, 
 and a receipt given for the same as follows : 
 
 ARLINGTON COOPERATIVE ASSOCIATION. 
 
 No. of Book 
 
 Quarter ending, Dec. 31, 1890. 
 
 RECEIVED the above number Pass Book, also Checks 
 
 amounting to % . 
 
 GEO. DEWHIRST, Clerk. 
 
 The Quarterly meeting will be held in the Caledonian Hall, on 
 Wednesday, January 28th, at 7.45 p. m. 
 
 The Pass Books will be ready and dividends for this quarter paid as 
 follows : On Friday, Jan. 30. at Central store, from 2 to 8 p. m., on Sat- 
 urday, Jan. 31, at Branch store. No. 2 Hancock street, from 12 m., to 2.30 
 p. m., and at Branch store. No. 1 Lawrence street, from 3 to 8 p. m. 
 
 No withdrawals of sluire capital will be paid during the time 
 appointed for paying dividends. 
 
 If the party presenting checks is a non-member, he 
 gets a receipt like this : 
 
 ARLINGTON COOPERATIVE ASSOCIATION. 
 
 NON-MEMBER'S RECEIPT. 
 
 Received of. 
 
 Checks amounting to $ 
 
 Date 
 
 GEO. DEWHIRST, Clerk. 
 
 'This Cheek must be preaetUnd hi/ the ]i(irty collccluuj IHvldend.
 
 62 HOW TO COOPERATE. 
 
 The amount of the dividend to which he is entitled is 
 then entered in his pass book, also the amount of inter- 
 est due on his shares during the quarter, and the pass 
 book is returned to the member. This record is taken 
 from the convenient "summary book" of the stock' 
 holders' ledger. The matter is thus very simple for the 
 member, and expeditious for the clerk. 
 
 The Directors' Meetings. The directors attend 
 to details by committees. The principal one is the ad- 
 visory committee, which has charge of the general busi- 
 ness. Uliere is another on real estate. Special commit- 
 tees are appointed for special duties. The advisory 
 committee is the most important a store can have, as 
 before it come all complaints, changes of staff, etc. 
 
 I attended a meeting of the directors early in the 
 spring of 1891. They were nearly all present solid, 
 substantial, intelligent looking, practical working men, 
 some more successful than others financially, but all of 
 good judgment. The meeting was called to order by 
 President Speed, the clerk taking a record of those pres- 
 ent. The minutes of the last meeting were read and 
 accepted. A very complete cash statement for the two 
 weeks ending that day was then read by the clerk. It 
 showed the receipts and expenses for each department 
 and each store, and compared this data with the corre- 
 sponding two weeks of the previous year. In every case 
 there was a handsome increase, which the directors com- 
 mended and were pleased at such progress. They con- 
 sidered a few points of the report, which showed them 
 just how the sales and expenditures stood, and then ac- 
 cepted it. The clerk then read off a long list of applica- 
 tions for membership. Some of these provoked inquiry 
 as to just who the parties were, in what part of the city 
 they lived and which store they would be served from, 
 etc. Then all were accepted by one vote. A few appli- 
 cations for withdrawal of stock were then acted upon.
 
 THE COOPERATJVE STORE. 
 
 63 
 
 The records of the meetings of the advisory committee 
 since the last meeting of the directors, which are also 
 kept by the clerk, were read by him. These records 
 showed just what the committee had done, and contained 
 a few suggestions, which the board proceeded to discuss, 
 after which the records were approved. The records 
 included a mention of the members of the committee 
 present at each meeting, so that the directors could see 
 
 Fig. 6. Branch No. 2, Arlington Coopkratfvk association. 
 
 how thoroughly they attended to business. It was a})- 
 parent that while the directors had implicit confidence 
 in their manager, both he and they insisted upon a full 
 statement of affairs twice a month. This, with a careful 
 audit, keeps both directors and shareholders well posted, 
 and gives them confidence in the association an impor- 
 tant point. 
 
 These regular matters out of the way, the clerk 
 brought up the question of buying sugar and one or two
 
 64 HOW TO COOPEBATE. 
 
 other minor matters, upon which an interchange of 
 opinion was expressed and the matters were acted upon 
 by vote or referred to the clerk or to the advisory com- 
 mittee. The business meeting then adjourned, and an 
 informal discussion of the cooperative movement fol- 
 lowed. The conversation showed how thoroughly the 
 directors have mastered the principles of the subject, 
 and the careful way in which they considered certain 
 suggestions about widening their operations showed busi- 
 nesslike caution, and indicated how well they had 
 learned the lesson that they should grow only as fast as 
 their means and experience permitted, avoiding every- 
 thing of a speculative or risky nature. 
 
 The Taking of Stock. All stores are closed one 
 day, at the end of the quarter, for the purpose of taking 
 stock. Every article of merchandise in the different 
 stores is counted, measured or weighed by the employes 
 in charge of the respective departments, who make a 
 report on slips of paper as to the amount of each article. 
 Then the clerk and auditor, with the manager of the 
 store, go through the goods to see that the amount on 
 hand verifies the quantity reported by the inventory. 
 
 The clerk and auditor are the ones who put the price 
 on each article in the inventory. The value allowed is 
 what the goods cost, unless the market price is lower, 
 when a corresponding reduction is made, but in no case 
 are the goods valued above cost, however much the mar- 
 ket on them may have advanced. These values are 
 made up from the clerk's accounts and bills, under the 
 immediate supervision of the auditor. In this way the 
 inventory is taken both quickly and accurately, in one 
 day for all the stores. There can be no mistake as to 
 the quantity or character of the goods on hand, while 
 the value of the same, being taken from the association's 
 accounts and bills, instead of being put on by the em- 
 ployes, who might be careless about it, are always on the
 
 THE COOPERATIVE STORE. 65 
 
 safe side. In all cases the value is put low. Few, if 
 any stores run by private capital take so careful and con- 
 servative an inventory. In this respect also the example 
 of the Arlington should be carefully imitated. There is 
 no way by which a cooperative store can deceive itself as 
 to its condition more readily than by swelling the inven- 
 tory. It must be put down to hard-pan and kept there. 
 In addition to this a suitable allowance should be made 
 for depreciation in the value of fixtures, store furni- 
 ture, scales, wagons, etc., as mentioned on Page 47. 
 
 Auditing the Accounts. The great danger with 
 most cooperative stores is that the auditing is shirked. 
 It is seldom thoroughly done. The auditor usually goes 
 through the books in a perfunctory way, and sees that 
 the totals balance. If, later on, it transpires that the 
 accounts are not correct, the auditor is usually quite as 
 much surprised as the other members. Now the Arling- 
 ton association does not approve of any such slipshod or 
 unbusiness-like method. It not only insists on a careful 
 and complete auditing of its books and accounts, but it 
 is fortunate in having an auditor who knows how to do 
 it and who takes an interest in the work. 
 
 Yet this gentleman, George Hartley, is not an expert 
 bookkeeper, or one whose business has specially qualified 
 him for such work. He is a plain, substantial working 
 man, who has made his way from the spinning frame to 
 be assistant overseer in one of the departments of the 
 mills. But he has a complete knowledge of the cooper- 
 ative movement, appreciates the importance of a thor- 
 ough audit and has learned how to do the work properlv. 
 Having learned how to do the work while the business 
 was small, he has developed with it. The same would 
 be true of auditors in similar enterprises. The great 
 point to be noted here is that the very first audit made 
 was searching and complete a policy that has since 
 been maintained. Nothing is taken for granted. It is 
 6
 
 66 
 
 HOW TO COOPERATE. 
 
 far easier to enter upon this policy at the start than to 
 inaugurate it after a cooperative society has gone wrong. 
 The accounts being finally balanced, the books are 
 handed over to the auditor. In making the audit, Mr. 
 Hartley first goes through the inventory, checking the 
 prices and amounts. He then goes through the books 
 very carefully, checking up the vouchers for all expendi- 
 tures and seeing that they are properly posted to the 
 different accounts, and that the various accounts and 
 cash balance. In the course of business, every bill, 
 (after approval by at least two of the three members of 
 
 i X 
 I 
 
 
 
 FIG. 7. Aklington'8 Coal and Wood yard. 
 
 the advisory committee and by the clerk) is numbered 
 and entered in the journal with a corresponding number. 
 The vouchers being arranged in rotation, can be quickly 
 checked up. Special care is exercised in auditing ac- 
 counts witli shareholders. A ledger account is kept 
 with each member, which is duplicated in his pass book, 
 as it is returned quarterly to be written up from the 
 ledger. The association also has a summary of this 
 shareholders' ledger, which makes it comparatively easy 
 to audit these accounts. This system is the one adopted 
 by tlie cooperative society at Leeds, England, the largest 
 in the world. It is best explained by example ; hence 
 we insert here the following instances :
 
 THE COOPERATIVE STOBE. 
 
 67 
 
 Four Sample Accounts From the Shareholders' Ledger. 
 
 No. OF Account, 102. 
 
 Dr. 
 
 April 1 
 
 " 27 Cash . . . . 
 Interest. 
 
 July 1, Int. and Div., 
 
 Cr. 
 
 .$30.00 
 
 . 25.00 
 
 12 
 
 $55.12 
 . 7.54 
 
 No. of Account 103. 
 
 Dr. 
 
 April 30 To cash $100.00 
 
 Balance 41.81 
 
 $141.81 
 
 April 
 
 Int. and Div.. 
 
 July 
 
 Int. and Div., 
 
 Or. 
 
 $135.17 
 . 6.64 
 
 $141.81 
 
 . 41.81 
 . 5.54 
 
 No. OF Account 104. 
 
 Dr. 
 
 April 1 
 
 Int. and Div.. 
 
 July 1, Int.. 
 
 Cr. 
 
 .$42.00 
 . 8.00 
 
 $50.00 
 62 
 
 No. of Account, 110. 
 
 Dr. 
 
 April 1. 
 
 Cr. 
 
 .$5.06 
 
 These accounts appear as follows in the summary 
 book, their accuracy proving themselves by balancing of 
 totals and references to the last quarter. By this system 
 it is practically impossible for a careful audit to fail to 
 find errors, if any occur, in the shareholders' accounts. 
 
 The Above Accounts as Entered in Summary Book. 
 
 c 
 
 . 
 1 
 
 |o 
 
 $30.00 
 
 05 
 
 
 8 
 
 
 1 
 
 1^ 
 
 ^1 
 
 5 
 
 
 
 1 
 1 
 
 102 
 
 $26.00 
 
 $0.12 
 
 
 $55.12 .?0.54 
 
 $100 
 
 7% 
 $7.00 
 
 
 $7..54 
 
 102 
 
 103 
 
 13,5.17| 
 
 0.64 $100.00 
 
 41.81 ..W 
 
 72 
 
 5.04 
 
 
 5.54 
 
 103 
 
 104 
 
 42.00 
 
 8.00 
 
 50.00 .62 
 
 
 
 
 62 
 
 104 
 
 110 
 
 5.061 
 
 
 5.06 .06 
 
 33 
 
 2.31 
 
 $2.37 
 
 
 110
 
 68 HOW TO COOPERATE. 
 
 The Quarterly Statement. Before the' accounts 
 are finally closed, a draft or trial balance is submitted to 
 the directors for their approval and declaration of divi- 
 dends. This statement to the directors is much more 
 complete and in detail than is given in the published 
 report furnished to the shareholders. Tlie reason of 
 this is that the oflBcers do not care to help their compet- 
 itors by unnecessarily giving away their own business. 
 After the auditing is completed, and the quarterly state- 
 ment as finally made up is signed by the auditor and 
 clerk, it is again presented to the directors in the form 
 in which it is to be printed. They then approve it and 
 decide how many shall be issued. It is printed and is 
 distributed to the members two or three days before the 
 quarterly meeting. A sample of this balance sheet and 
 clerk's statement is given below. We commend it as a 
 model in its way, and advise every cooperative association 
 to follow this form of making reports. It is not only 
 plain, so that any member can understand it, but it is 
 also an accurate and business-like combination, which 
 cannot be said of the reports of most cooperative socie- 
 ties, which frequently sacrifice accuracy in an attempt 
 to be plain. The quarterly statement is printed in clear 
 type on a four-page leaflet, each leaf being eight and one- 
 half by eleven and one-half inches in size. It is re- 
 printed by pages, and its style imitated ;
 
 THE COOPERATIVE STORE. 69 
 
 [First page.] 
 
 ARLINGTON COOPERATIVE ASSOCIATION. 
 
 Lawrence, Mass. 
 
 CENTRAL STORES, 475 AND 477 BROADWAY. 
 
 BRANCH NO. 1, 19 AND 21 LAWRENCE STREET. 
 
 BRANCH NO. 2, 17 HANCOCK STREET. 
 
 Twenty-sixth quarterly statement of the Arlington cooperative 
 
 association, as presented to the members at the quarterly 
 
 meeting held April 29, 1891, at the Caledonian hall, 
 
 Brechin block. 
 
 Fellow Members : Your Directors have pleasure 
 in submitting the following results of the quarter's busi- 
 ness : 
 
 ( Central store $15,034 86 
 
 Cash sales of merchandise : { Branch No. 1 11,306 97 
 
 ( Branch No. 2 6,028 53 
 
 $32,370 36 
 
 Fuel (coal and wood) 7,208 79 
 
 Dry goods 3,419 24 
 
 Boots and shoes (Lord Bros, and Robert Barker) 4,131 67 
 
 Clothing ( W. H. Gile & Co.) 3,312 82 
 
 Stoves and Tinware (Wm. Forbes & Sons) 168 54 
 
 Dry goods (R. M. Cross & Co.) 1,656 15 
 
 $52,267 57 
 Non-members' checks returned, entitled to one half 
 
 dividend $ 1,613 00 
 
 Members' checks returned 58,413 00 
 
 Total $60,026 00 
 
 As shown by the clerk's statement herewith we real- 
 ized a gross profit : 
 
 On total sales made, of $10,141 73 
 
 Deducting salaries, interest, and expenses 6,524 59 
 
 We have a net profit of $4,617 14 
 
 Which your directors have distributed as follows : 
 
 Members' full dividend, $92 at 8 per cent (omitted 
 
 last quarter), $58,321 at 7 per cent $4,089 73 
 
 Non-members' dividend, 3 1-2 per cent 56 45 
 
 Amount carried to sinking fund to balance above 470 86 
 
 $4,617 14 
 Our sales during the quarter show an increase over tlie cor- 
 responding period of last year of $9,165 79 
 
 And net profits of 1,157 40 
 
 During the quarter our net gain in membership is 116 
 
 Total number of members, Ai)rii 1, 1891 1560
 
 70 HOW TO COOPERATE. 
 
 [Second page.] 
 
 Your Directors have pleasure in stating that our mem- 
 bership, capital stock, and trade continue to steadily 
 increase. During the year our sales have increased 
 $38,793.05, and net profits $3,906.90. You will note 
 that the checks returned for dividend amount to 
 $7,759.00, more than our sales, and although our divi- 
 dend is smaller than last quarter, still our net profits 
 show a greater percentage on sales. 
 
 In accordance with your vote, arrangements have 
 been made for enlarging the Lawrence street store. 
 
 Kespectfully submitted on behalf of the directors, 
 JAMES SPEED, President. 
 
 Announcements. 
 
 How TO Become a Member. This association is open to member- 
 ship from the general public on nomination by a member, and accept- 
 ance by the board of directors. Blank forms of application may be 
 obtained at the stores. 
 
 Immediately after a candidate for membership is admitted, a share 
 book will be given him, into which all subscriptions will be entered. 
 Upon payment of one dollar on account of shares, the subscriber is 
 entitled to have full dividends on checks returned. Tliis dividend can- 
 not be withdrawn until full amount of one share stands to the credit 
 of the subscriber by payment or otherwise. 
 
 The clerk's oflftce is open every Friday evening from 7 to 9 o'clock to 
 receive and pay out subscriptions. 
 
 We wish to call the attention of the stockholders to 
 the fact that we are in a position to deliver from our 
 own yard, Hardwood, Birch, Pine, and Pine Slabs, in 
 stick or prepared. 
 
 Note. Your loads are sent out in larger wagons than 
 the average peddler uses. 
 
 Arrangements are still in force with LORD BROS., 503 Essex street, 
 and ROBERT BARKER. 517 Broadway, to supply our members with 
 boots and shoes ; W. H. GILE & CO., 224 Essex street, for the supjily of 
 clothing; R. M. CROSS & CO., 247 Essex street, for the supply of dry 
 goods. Similar arrangements have been made with WM. FORBES & 
 SONS, for the supply of stoves, etc. Upon presenting at store receipted 
 bin from them, checks will be given in exchange, the same as for pur- 
 chases made at our store.
 
 THE COOPERATIVE STORE. 71 
 
 Dividends and Interest on this quarterns business only, 
 will be paid at Central store, on Friday, May \, from 2 
 to 8 p. m. ; on Saturday, May "Z, at Branch store. No. 2 
 Hancock street, from 12 to 2.30 p. m. j and at Branch 
 store, No. 1, Lawrence street, from 3 to S p. m. All 
 dividends and interest not withdrawn on these days 
 will be transferred to member's account, and cannot be 
 withdrawn without notice. 
 
 Members are earnestly requested to allow their dividends to remain 
 to their credit. This is one of the best and surest ways for working- 
 men to accumulate savings. 
 
 Customers are hereby notified that not more than 
 twenty dollars in checks will be exchanged on any one 
 day. The storemen have strict instructions to enforce 
 this regulation. 
 
 Colored checks for dividends will be received as follows : 
 Central store, Broadway, June 26, from 2 to 8 p. m. ; 
 Branch No. 2, Hancock street, June ^Tl, from 12 to 2.30 
 p. m. ; Branch No. 1, Lawrence street, June 27, from 
 3 to 8 p. m. 
 
 Members will please note that it is desirable that all share books 
 should be returned every quarter so that tliey may be entered up and 
 audited. 
 
 Business for Quakteuly Meeting. 
 
 Records of last quarterly meeting. 
 
 Acting upon report and balance sheet. 
 
 Election of directors, treasurer, clerk, and auditor. 
 
 New business.
 
 72 
 
 HOW TO COOPERATE. 
 
 [Third page.] 
 
 Clerk's Statement for Quarter Ending March 
 31, 1891. 
 
 RECEIPTS. 
 
 Casli uii hand Jan. 1 $ 3,025 47 
 
 Sales 52,267 57 
 
 Share.s and instalments . . 6,964 30 
 
 Inttiatiun fees 65 00 
 
 Rents 87 75 
 
 Manure 27 50 
 
 $61,437 59 
 
 DISBURSEMENTS. 
 
 Int. and divid'nd paid out 1,500 06 
 
 Shares and instal. " off 3,843 97 
 
 Insurance 112 50 
 
 Exi)ense 743 14 
 
 Fixtures 250 00 
 
 Stable 395 00 
 
 Salaries, niereh'disedept. 2,114 76 
 
 " dry goods " 230 66 
 
 " fuel " 734 13 
 
 Purchases of goods 43,274 49 
 
 Freight 198 52 
 
 Real estate 1,000 00 
 
 Non-members' dividend.. 56 45 
 
 Casli on liand 6.983 91 
 
 $61,437 59 
 
 Profit and Loss. 
 
 Proportion taxes and ins. $163 89 
 
 Int. educa'l fund. $ 1 63 ) koi n^ 
 
 " capital 520 31) 5^194 
 
 Depreciation of fixtures.. 384 50 
 
 Salaries, merchandise 2,114 76 
 
 fuel 734 13 
 
 " dry goods 230 66 
 
 Freight 198 52 
 
 Horse Iceeping 397 50 
 
 SUNDRY EXPENSES. 
 
 Horseshoeing $ 48 06 
 
 Eepair'gharn's, etc. 40 75 
 
 " wagons, etc. 63 45 
 
 Prinfg, station 'y, " 125 87 
 
 Telep'ne & teleg'ms 33 55 
 
 Cash carrier 18 00 
 
 Traveling expenses. 117 00 
 
 Ice 23 36 
 
 Rent 107 00 
 
 Gas & electric liglits 90 69 
 
 Water 17 47 
 
 Repairing baskets . . 15 75 
 
 Coal 35 55 
 
 Salaries 42 19 778 69 
 
 Members' di vidend 4,089 83 
 
 Non-members' dividend.. 56 45 
 Sinking fund 470 86 
 
 $10,141 73 
 
 Gross profits $10,141 73 
 
 $10,141 73
 
 THE COOPERATIVE STORE. 
 
 73 
 
 Ledger Balances. 
 
 Merchandise on hand $13,479 21 
 
 Fuel " 3,151 85 
 
 Dry goods " 7,923 57 
 
 Fixtures 7,154 21 
 
 ( Holly street 10,612 00 
 
 Real Estate \ Railroad 4,111 81 
 
 ( Hancock St.. 4,473 72 
 
 Taxes and insurance 327 80 
 
 Cash on hand 6,983 91 
 
 $58,218 08 
 
 SinkinR fund $7,537 9T 
 
 Stockholders' claims 45,937 78 
 
 Educational fund 132 11) 
 
 Int. quarter end'g Mar. 31 520 31 
 Stockholders' dividend... 4,089 83 
 
 $58,218 08 
 
 Kespectfully submitted, 
 
 George Dewhirst, Clerk. 
 Examined and found correct. 
 
 George Hartley, Auditor. 
 
 [Fourth page.] 
 
 Twenty-sixth Quarterly Statement. 
 ARLINGTON COOPERATIVE ASSOCIATION. 
 
 DIRECTORS' ATTENDANCE. 
 
 Whole number of meetings during tlie year, 34. 
 
 JAMES SPEED, President 
 
 31 
 
 GEO. DEWHIRST, Clerk .... 
 
 34 
 
 FRANK FARR, Treasurer 
 
 
 
 J. g. INGALLS ..... 
 
 30 
 
 JOHN WILKINSON .... 
 
 29 
 
 GEO. LIGHTFOOT .... 
 
 18 
 
 RICHARD CAMPBELL 
 
 30 
 
 J. H. HULFORD ..... 
 
 18 
 
 GEO. ELLIS ..... 
 
 27 
 
 W. J. BUTLER ..... 
 
 29 
 
 JAMES LAWLOR .... 
 
 29 
 
 JOHN WATTS ..... 
 
 32 
 
 J. B. LYALL ..... 
 
 31 
 
 Whole number meetings advisory commit 
 
 tee, 57. 
 
 J. G. INGALLS ..... 
 
 50 
 
 GEO. ELLIS ..... 
 
 65 
 
 JOHN WATTS ..... 
 
 51 
 
 Comment on the Statement. The first and most 
 important point is that the entire business is for cash. 
 The cooperators thus avoid all bad debts ; they also 
 avoid the tax on those who pay to make up for losses on
 
 74 HOW TO COOPERATE. 
 
 dead beats, which is borne by all prompt paying custom- 
 ers of private stores. Tlie ledger balances do not in- 
 clude any such thing as bills receivable, neither are there 
 any bills payable. The only exception to this is when 
 a heavy purchase, as of coal, is made, part of which has 
 to be carried as bills payable for a time, but this is done 
 only when great savings can be made, and is not the 
 rule. 
 
 The next point to be noted is that the members' checks 
 returned were over seven thousand dollars in excess of 
 the sales. This was because the association does not 
 require that checks shall be returned at the end of the 
 quarter. Some members bring in their checks only 
 twice a year. The Johnson county cooperative associa- 
 tion requires all checks on a quarter's business to be 
 returned within a few days of the end of the quarter, or 
 the dividend is forfeited. Mr. Dewhirst says that theo- 
 retically this is a good rule, but practically the objection 
 is that it adds extra red tape which, so far as members 
 are concerned, should be done away with as much as 
 possible. 
 
 It is also to be noted that the interest on capital stock 
 is properly counted as an expense, like salaries and other 
 expenses. The large net gain in membership is notice- 
 able. The confidence the members have in the store is 
 shown by the fact that the average investment of each 
 member is fully thirty dollars, a large sum considering 
 that most of the members are mill operatives, earning 
 from five to nine dollars a week. The increase in the 
 business reported is remarkable. The announcements 
 on the second page of the statement are important to the 
 members. 
 
 The crowning feature of the report is the very clear 
 clerk's statement on the third page. No business house 
 can show a cleaner balance sheet, especially when we 
 remember that the fixture account is reduced from over
 
 THE COOPERATIVE STOKE. 75 
 
 eleven thousand dollars, that the inventory is taken at 
 cost or less, and that the real estate is worth probably 
 twenty per cent more than it is put in at. The clear- 
 ness with which the statement shows where the money 
 came from, and where it went to, will also satisfy the 
 most exacting. 
 
 Trading W^ith Other Stores. In explanation of 
 the sales of boots and shoes, clothing, stoves and tin 
 ware, also dry goods from R. M. Cross & Co., noted in 
 the clerk's report, it should be stated that these are arti- 
 cles not dealt in by the Arlington. For the accommo- 
 dation of its members, however, it has an arrangement 
 with the four firms mentioned, by which a dividend of 
 ten per cent on all purchases at such stores is paid by 
 these stores direct to the association on such receipted 
 bills from them as may be presented to it by its members. 
 The purchaser receives the same dividend at the end of 
 the quarter on such purchase as though it were obtained 
 directly from the association itself. This is a feature 
 which has also been long tried in England and with 
 marked success. It is not only a convenience to the 
 members, securing them the same rebate or dividend as 
 on goods bought at the cooperative store, but it yields a 
 small income to tlie store and also makes these dealers 
 in other lines its special friends instead of unnecessarily 
 antagonizing them, as is so frequently done by coopera- 
 tive societies. It will be observed that the receipted 
 bills from these four outside stores tunied into the asso- 
 ciation by the cooperators during the twenty-sixth quar- 
 ter made a total of $9,269, ten per cent of which is 
 $926.90, but the store paid only a seven per cent divi- 
 dend, so that the store had to pay out only $648.83, 
 leaving the balance of three per cent, or $278.07 as addi- 
 tional profits. The cooperators pay the regular prices 
 at these stores and their receipts are their vouchers. 
 This plan therefore does away wholly with the cumber-
 
 76 HOW TO COOPEKATE. 
 
 some and unsatisfactory system of trade cards, and the 
 necessity for identifying cooperators at other stores. 
 The Arlington store men know most of their members, 
 so a trade card is not required. 
 
 The Quarterly Meeting, The clerk's statement 
 carries with it the notification of the date of the quar- 
 terly meeting of the members and the business that will 
 come before them. They can therefore see just what is 
 on and can be considering it. The meeting is called to 
 order by the president. The records of the last quarterly 
 meeting are read and approved. The financial state- 
 ment and report is then read by the clerk. Questions 
 about it are invited and often a little profitable discus- 
 sion takes place, the items being explained as requested. 
 This is always done very cheerfully, much information 
 being imparted to the stockholders in this way that it 
 would be unwise to print in the report. After the bal- 
 ance sheet has been accepted, other business that belongs 
 to the shareholders may come up and be talked of, such 
 as extension of the premises or increase of capital stock, 
 while any shareholder is at liberty to bring up other 
 matters of interest. The by-laws, however, do not per- 
 mit shareholders to make complaints at the meetings, 
 such matters coming before the advisory committee or 
 board of directors. Nor do the rules permit subjects 
 foreign to the affairs of the association to be discussed. 
 
 The weakest point in the Arlington is that its mem- 
 bers have such confidence in the management that they 
 do not turn out to the quarterly meetings, 100 out of 
 1,600 members being an exceptional attendance. This 
 could be overcome by preparing an attractive program 
 of talks and discussions to follow the adjournment of 
 the business meeting. In this way the quarterly meet- 
 ings could be made of great educational value. 
 
 How the Arlington Has Grown. The following 
 table shows the develoj)mcnt of the association in its
 
 THE COOPERATIVE STORE. 
 
 77 
 
 first six years, ended Oct. 1, 1890, proving conclusively 
 that, rightly managed, the cooperative store is a grand 
 success : 
 
 Number of shareholders 
 
 Capital stock 
 
 Sales 
 
 Interest paid 
 
 Net profits 
 
 Total return on capital. 
 
 Ditto per cent 
 
 Sinking fund 
 
 Dividend paid 
 
 1885. 1886. 1887. I 1888. I 1889. | 1890. 
 
 280 351 
 83,557 S6,027 
 38,195 45,385 
 
 1731 192 
 2,273 
 
 2,446 
 
 76 
 
 477 
 
 1,950 
 
 3,770 
 3.962 
 103 
 1,200 
 3,118 
 
 1 Grand 
 
 I Tot (I I 
 
 577| 751 l,om, 1,391 1,381 
 $14,744 $20,203 27,586 $40,312 $40,312 
 70,970 105,645 141,007 184,753 585,956 
 
 442 
 6,969 
 6,411 
 73 
 2,150 
 5,145 
 
 877 
 7,477 
 8,355 
 47 
 3,061 
 6,781 
 
 1,144 
 10,378 
 11,523 
 50 
 4,408 
 9,236 
 
 1,558 
 
 14,039 
 
 15,597 
 
 51 
 
 6,518 
 12,132 
 
 4,387 
 
 43,907 
 
 48,294 
 
 55 
 
 6,518 
 38,632 
 
 The dividends on purchases have varied from seven to 
 nine per cent. It will be noted from the table that had 
 the amount thus returned to the patrons of the store 
 been divided only on the average interest-bearing capi- 
 tal, the average interest on the capital stock for the six 
 years would have been fifty-five per cent annually. The 
 Arlington association is more than maintaining its pre- 
 vious rapid progress, for April 1, 1891, the stockholders 
 had increased to 1,560 ; capital stock, $45,938; sinking 
 fund, 17,538 ; total amount of sales to date $690,534 ; 
 total amount of dividends divided, $45,888. The sales 
 for the year ending Oct. 1, 1891, will be nearly a quarter 
 of a million of dollars. 
 
 The small expenses further confirm good management. 
 Aside from interest on capital and depreciation of fix- 
 tures, the expense in the twenty-sixth quarter was only 
 a fraction over eight per cent on the business done. 
 Since most of the goods have to be delivered at the 
 members' houses, this shows exceedingly close manage- 
 ment. Still the help are well paid, boys receiving from 
 four to ten dollars a week, and men from nine to eight- 
 een dollars a week. The grocery stores open every 
 morning at 6.30, the dry-goods stores at 8, closing on 
 Monday and Tuesday at 7, Wednesday at 1, Thursday 
 at 8, Friday at 9.30 and Saturday at 10 o'clock. The 
 stores are thus closed one-half day in each week, giving
 
 78 HOW TO COOPERATE. 
 
 employes a weekly lioliday the year tlirough something 
 almost im heard of in private corporations. 
 
 The men who have made this conspicuous success 
 have done it more by strict attention to business than 
 by any exceptional talent. The directors just now 
 include Americans, Englishmen, Irishmen and Scotch- 
 men. These gentlemen are for the most part overseers 
 or assistant overseers in the mills and serve without 
 pay. They all cheerfully admit, however, that the 
 society cannot be run by its directors. Yet the 
 clerk, George Dewhirst, seems to have grown up with 
 the business. He was born in Yorkshire in 1849, emi- 
 grating to America in 1881. In England he was a book- 
 keeper and cashier for a large firm of lumber dealers, 
 and is one of a family of cooperators who were members 
 of the Keighly society. He went into the Arlington 
 mills as a weaver and worked his way until he got into 
 the general office as bookkeeper. He kept the accounts 
 of the cooperative store the first three years evenings, in 
 connection with the treasurer, and was then chosen 
 clerk and manager, which position he has since held. 
 It will be noticed that he had had clerical experience 
 and was a good bookkeeper important points in a store 
 manager. 
 
 An Instructive Failure. It is true that many 
 cooperative stores have started under what appeared to 
 be brilliant auspices, only to fail disastrously. But in 
 every case investigation shows such failures to be readily 
 accounted for, mismanagement and departure from the 
 principles of cooperation being the true causes. Aside 
 from the many attempts of temporary duration, per- 
 haps the most instructive failure is that of the Philadel- 
 phia Industrial Cooperative Society, Limited, which was 
 incorporated in 1874, and at one time reached a member- 
 ship of over 2,500, operating eight stores, and being 
 considered the most prosperous cooperative association
 
 THE COOPERATIVE STOEE. 
 
 79 
 
 in America. It stopped business in February, 1890, 
 when a proper taking of stock disclosed a deficiency of 
 over $10,000, after wiping out its reserve fund of about 
 $6,000. The rapid growth of the Philadelphia associa- 
 tion and its equally rapid falling away are shown by the 
 following comparison, the fifteenth year being 1889 : 
 
 
 
 Profits, in- 
 
 
 
 
 Sales. 
 
 cluding int. on 
 capital. 
 
 Sinking fund. 
 
 Capital stock. 
 
 6th yoar. .ini.217 
 
 $ 5,584 
 
 $ 461.79 
 1,067.08 
 
 
 7th 
 
 " 132,068 
 
 9,851 
 
 
 8th 
 
 " 209,092 
 
 15,543 
 
 2,992.67 
 
 $40,881.47 
 
 9th 
 
 241,291 
 
 22,745 
 
 2,845.81 
 
 59,131.05 
 
 10th 
 
 " 236,688 
 
 21,043 
 
 3,565.25 
 
 63,000.88 
 
 11th 
 
 " 202,043 
 
 13,688 
 
 4.061.85 
 
 55,188.75 
 
 12th 
 
 171,278 
 
 11.162 
 
 4,523.70 
 
 49,349.36 
 
 13th 
 
 " 126,080 
 
 6,960 
 
 4,999.92 
 
 44,233.55 
 
 14th 
 
 122,590 
 
 4,102 
 
 5.565.50 
 
 46,105.70 
 
 15th 
 
 53,262 
 
 *10,933 
 
 5,972.68 
 
 28,700.29 
 
 Net loss. 
 
 Investigation proved it a wonder that the association 
 had run as long as it did. In the first place, the store 
 never had a competent executive or manager. The di- 
 rectors attempted to run the business, and did it in an 
 unbusinesslike manner, because, like many working 
 men, they were not familiar with such matters. In fact, 
 there were so many cranks and impracticable men among 
 the shareholders that the directorship was an unbearable 
 office, and good men could not be secured for this place. 
 An attempt was made to get a more competent general 
 manager, but the directors did not work in harmony 
 with him and did not feel justified in paying the salary a 
 really competent man could command. Again, the 
 directors opened branch stores and tried to do much 
 trade without having the necessary capital, carrying 
 heavy mortgages to do this and therefore having large 
 expenses for borrowed money. They failed to solidify 
 the business, constantly deceived themselves in their 
 inventory and did not allow enough for depreciation of 
 fixtures. During the ninth year they reduced the sink- 
 ing fund to keep up the rate of dividend. This gave a
 
 80 HOW TO COOPERATE. 
 
 shock to the confidence of the shareholders that was 
 never recovered, for the business and membership con- 
 stantly fell off. There was a great scramble to get out 
 during the sixty-first quarter, ended Nov. 16, 1889, dur- 
 ing which capital stock and loans to the amount of over 
 $21,000 were withdrawn. When the unsound state of 
 the association was discovered, early in the '80's, the 
 whole thing was not gone over thoroughly and put down 
 to hard-pan. Had this been done, under proper man- 
 agement this association might to-day have been doing a 
 business of half a million dollars a year. The great 
 lesson of its failure is not the weakness of cooperation, 
 but its strength, for only a cooperative corporation could 
 stand such mismanagement as long as this one did. The 
 contrast between the Philadelphia and the Arlington is 
 most instructive. 
 
 Summarizing it All, we cannot do better than quote 
 in full from "Workingmen Cooperators," Acland and 
 Jones's pithy condensation, every word of which is as 
 true in America as in England : 
 
 " Essential Points. (a) The store is open to all ; 
 {b) charges ordinary market prices ; (c) receives cash 
 only, and gives no credit ; (d) gives dividend in propor- 
 tion to purchases ; (e) every member must have a share 
 or shares, and receives good interest on them ; (/) all 
 are equal in voting power, each having one vote only 
 whether they hold few or many shares; (g) the store 
 sells genuine articles, which are what they profess to be ; 
 (h) the store has an honest manager and active directors ; 
 (i) the society insists on an efficient and an intelligent 
 audit and stock-taking. 
 
 *' Causes of Success. (1) A clear understanding 
 and performance of the duties of an officer, an employe, 
 and a member ; (2) competent and painstaking officers 
 (3) competent and trustworthy employes ; (4) proper 
 security for the honesty and efficiency of the principal
 
 THE COOPERATIVE STORE. 81 
 
 employes ; (5) amicable and earnest working together ; 
 (6) promptitude and punctuality in business; (7) impar- 
 tiality, civility and pleasant manners in the members 
 and in the staff ; (8) generous treatment of the em- 
 ployes ; (9) judicious purchasing and careful regulation 
 of the stocks ; (10) cash purchases and cash sales; (11) 
 carefully regulated expenses ; (12) judicious investment 
 of all surplus capital ; (13) ample depreciation of prop- 
 erty ; (14) ample reserve funds ; (15) good bookkeeping 
 and auditing ; (16) officers giving full and free explana- 
 tions to the members' meetings ; (17) members having 
 full confidence in the officers. 
 
 "Causes of Failure. (l)Allowing the storekeeper 
 to do as he likes ; (2) allowing credit to purchasers ; (3) 
 bad bookkeeping and auditing ; (4) bad by-laws ; (5) 
 carrying repairs and renewals to fixture and real estate 
 account instead of to expenses account; (6) competing 
 with the stores that cut prices ; (7) expenses too great 
 for the business ; (8) employment of incompetent per- 
 sons; (9) dishonesty ; (10) injudicious purchasing ; (11) 
 injudicious and frequent changes of policy ; (12) mem- 
 bers purchasing away from the store; (13) not taking 
 ample security from persons in a position to misapply 
 the society's effects ; (14) inefficient officers ; (15) mem- 
 bers being unreasonable and quarrelsome; (16) purchas- 
 ing goods on credit; (17) overbuilding; (18) starting 
 branches or new departments before the society is strong 
 enough to bear the burden ; (19) waste behind the coun- 
 ter from bad stock keeping or careless weighing." To 
 which we may add that another and a great cause of 
 troubles that lead to failure is the heretofore too com- 
 mon idea that cooperation was a new way of transacting 
 business, whereas its division of net earnings is the only 
 thing actually new about it, as explained on Page 16. 
 
 In Conclusion, it would be difficult to add to the 
 foregoing exhaustive account of the cooperative store, 
 6
 
 82 HOW TO COOPERATE. 
 
 and to the further experiences narrated in the next chap- 
 ter and also in the Appendix, a more fitting conclusion 
 and worthy advice than that given below. It emanates 
 from and is based on the long and successful experience 
 of the old Rochdale Pioneers, being as true in America 
 as on the other side of the water. 
 
 1. Procure the authority and' protection of the law 
 by incorporation. 
 
 2. Let integrity, intelligence and ability be indis- 
 pensable qualifications in the choice of oJBScers and man- 
 agers, and not wealth or distinction. 
 
 3. Let each member have only one vote, and make 
 no distinction as regards the amount of wealth any mem- 
 ber may contribute. 
 
 4. Let majorities rule in all matters of government. 
 
 5. Look well after the money matters. Punish fraud 
 when duly established by the immediate expulsion of 
 the defrauder. 
 
 6. Buy your goods as much as possible in the first 
 markets ; or, if you have the produce of your industry 
 to sell, contrive, if possible, to sell it in the last. 
 
 7. Never depart from the principle of buying and 
 selling for spot cash. 
 
 8. Beware of long reckonings. Quarterly accounts 
 are the best, and should be adopted when practicable. 
 
 9. For the sake of security, always have the inven- 
 toried value of the fixture account at least one-fourth 
 less than its marketable value. 
 
 10. Let members take care that the accounts are 
 properly audited by men of their own choosing. 
 
 11. Let committees of management always have the 
 authority of the members before taking any important 
 or expensive step. 
 
 13. Do not court opposition or publicity, nor fear it 
 when it comes. 
 
 13. Choose those only for your leaders whom you 
 can trust, and then give them your confidence.
 
 CHAPTER IV. 
 
 FUETHEE EXAMPLES OF COOPERATIVE DISTEIBUTIOX. 
 HOW TO STAET A STOEE. 
 
 The Lessons of Experience are so valuable, and 
 the cooperative store the form of cooperation that will 
 be most practiced, we give here a full statement of several 
 other successful enterprises of this kind. The Appendix 
 also contains brief accounts of many other cooperative 
 stores. These examples are sufficiently varied as to loca- 
 tion, occupation of members, kind of management, etc., 
 to more than confirm the claims previously made for 
 cooperation as adapted to all sections, all vocations and 
 all peoples. Accompanying each statement are sugges- 
 tions from the experience of the managers, coupled with 
 author's comment at times. Thus would-be cooperators 
 may get the full benefit of all this practical experience. 
 We by no means decry the importance of the theory of 
 cooperation, but believe the necessity for its successful 
 practice more than justifies this chapter. It concludes 
 with a brief summary of just how to start a cooperative 
 store. 
 
 THE LYONS COOPEBATIVE ASSOCIATION. 
 
 The History of this very successful association is 
 full of promise for cooperative effort among wage-work- 
 ers in cities and villages as well as among farmers. 
 Lyons is a brisk manufacturing and business center, the 
 shire town of Clinton County, Iowa, on the Mississippi 
 river, opposite Fulton, 111., about one hundred and 
 thirty-six miles from Chicago, with a population of five 
 
 83
 
 84 HOW TO COOPERATE. 
 
 thousand seven hundred and ninety. When the local 
 assembly of the Knights of Labor was organized at 
 Lyons, July 12, 1885, among its principles was one 
 which taught cooperation. This subject was discussed 
 repeatedly until at a meeting held Dec. 17, 1886, one of 
 the members laid fifty cents upon the table to start a 
 fund to begin cooperation in some form. He was fol- 
 lowed by ten others, the total subscribed being six dol- 
 lars and fifty seven cents. 
 
 A cooperative committee of three to solicit members 
 and capital was appointed, which elected one of its num- 
 ber president, another secretary, and a third treasurer, 
 and decided to put the money in the bank in the name 
 of all three of the committee so that one could not draw 
 it out without the consent of the others. The commit- 
 tee and those who had paid continued to solicit, and 
 reported progress to the weekly meetings. Soon they 
 had upward of four hundred dollars paid in, cash being 
 culled for instead of subscriptions to stock or promises 
 that might never be realized upon. 
 
 A long discussion as to whether the funds should be 
 used in manufacturing or retail business followed, the 
 latter being finally adopted as the simplest to control. 
 The argument against manufacturing was that the work- 
 ers had no market for their goods and that it would be 
 far better to establish retail stores and create a demand 
 for the goods and manufactures would follow. 
 
 How it Started. A general meeting of the contrib- 
 utors to the fund was called, to which was submitted 
 the articles of incorporation carefully prepared in ac- 
 cordance with the State law. These were adopted and 
 the president, secretary, treasurer and directors elected, 
 who were to be the incorporators. This body moved 
 ahead at once, filing the articles of incorporation before 
 a notary public July 7, 1887, before the county recorder 
 July 8, and before the Secretary of State July 15, and
 
 OTHER SUCCESSFUL STORES. 
 
 85
 
 86 HOW TO COOPERATE. 
 
 got their charter from the latter official July 21. (See 
 Appendix.) 
 
 By-laws were adopted, and a store room rented in a 
 good location on Main street for thirty dollars a month, 
 which was stocked with six hundred dollars worth of 
 groceries bought of a wholesale dealer for spot cash. 
 The store opened for business Aug. 12, less than one 
 year from the first effort. In the meantime, the ques- 
 tion arose whether to have an experienced man at a big 
 salary to run the store or an inexperienced man at a 
 small salary and let him learn and grow with the busi- 
 ness. The members wisely decided on the latter course, 
 selecting Thomas H. Angell as manager, who is with 
 them yet, and to whom we are indebted for much of 
 our information. Mr. Angell does not recommend such 
 a selection as safe policy in all cases. 
 
 Outside the members of the association the public in 
 general, with a few exceptions, had but little faith in 
 the success of the enterprise, the expression being often 
 heard that "the boys were having a little fun, but it 
 would not last long." More or less opposition was pro- 
 voked, and the officers received a letter threatening to 
 blow up the store with dynamite. Late in the fall when 
 the store was quite well established the cooperators prac- 
 ticed a shrewd advertising dodge by entering into a 
 newspaper voting contest for the most popular grocery, 
 coming in second-best against the combined stores of 
 the town. Then the other dealers said the "Coops'' 
 could not last all winter, and, when the store bought a 
 whole car-load of potatoes in the spring, that it was 
 surely gone. 
 
 A Building Purchased. But on Feb. 25, 1888, the 
 "Coops" purchased what was then known as the Mur- 
 phy block for $4,025, having got tired of paying $360 a 
 year rent. That sum, with what rents were received 
 from the part of the building not used by the store at
 
 OTHER SUCCESSFUL STOKES. 87 
 
 that time, more than paid the interest on the purchase 
 money, taxes and insurance, and left a small balance 
 each year to apply on the principal. The society now 
 owns it and has christened it "Cooperative Block." 
 After this gradual but substantial growth, the store 
 began to win the confidence of business men and the 
 public in general and the result was an increase of mem- 
 bers and capital, and its adjunct patronage, until at 
 the fourteenth quarterly meeting, Jan. 20, 1891, it was 
 found necessary to increase the capital stock from 
 120,000 to |] 00,000, which was done, with a limit in 
 the by-laws that no one person should hold more than 
 $500 of stock. 
 
 A meat market was added to the store in the spring 
 of 1890, which has done very well. Thus encouraged, a 
 clothing and boot and shoe department was opened in 
 the fall of 1890, which so far has exceeded expectations. 
 Other enlargements and extensions are now under con- 
 sideration. The store now has ten employes, five horses, 
 three delivery wagons and an annual retail trade of 
 $60,000 to 175,000 a year the largest in the city. 
 
 Trade and Credits. The store charges the usual 
 retail prices. After paying expenses of management 
 and interest on capital, also setting aside at the rate of 
 ten per cent per annum to repair the deterioration of 
 fixed stock, the remaining profits are divided in divi- 
 dends to members on their paid-up purchases, which 
 have averaged eight per cent during the fifteen quarters 
 to April 20. Two per cent quarterly is paid on capital, 
 so that if a member owns fifty dollars worth of stock, 
 his interest for three months amounts to one dollar; 
 and if his paid-up trade is of the average amount sixty 
 dollars worth and the dividend on the same only five 
 per cent, he gets three dollars more, or four dollars in 
 all, which is eight per cent quarterly on his fifty dollars 
 capital, or thirty-two per cent annually.
 
 88 HOW TO CO6PBBATB. 
 
 Gash payments are insisted upon, though thirty days' 
 credit is allowed if parties are personally known to be 
 good. No credit is given, even to members, beyond the 
 amount of their capital. On this point the store ought 
 to be still more strict, for we find the book accounts 
 (money owing by members) amounted to 13,644, on Oct. 
 20, 1890, which sum had increased to $4,248 three 
 months later. Mr. Angell, however, says they watch 
 their book accounts carefully, and keep them all good, 
 for when a man does not pay as he promises he is 
 stopped, even at the risk of losing a customer. In spite 
 of this precaution, however, it is to be noted that dur- 
 ing the fourteenth quarter $77.49 was allowed for bad 
 debts. This sum is almost thirteen per cent of the divi- 
 dend paid during that quarter. Had the $77.49 been 
 paid in cash, the balance to the credit of the sinking 
 fund would have amounted to $94.88. Contrast this 
 loss, in three months, from bad debts on sales of $15,000, 
 with the loss of only $2.70 in a business of $40,000 in 
 several years, reported by the South Paris (Me. ) grange. 
 The Arlington cooperative never lost a dollar from bad 
 bills ; no bills receivable appear on its ledger, the balance 
 of assets above real estate, fixtures and merchandise 
 always being "cash on hand," except as noted. 
 
 The Strong Points of the success of the Lyons 
 association are pronounced by Mr. Angell to be the 
 ownership of its own store, so as to avoid paying rent, 
 judicious advertising, close attention to business and 
 conducting it honestly and economically, close buying 
 and discount of bills. All the employes are members 
 and therefore look after the business the same as if it 
 were their own establishment. Every item sold to 
 members either for cash or credit is entered on the day- 
 book and thence transferred to the ledger, which shows 
 every three months the amount of goods bought and 
 paid for in each department. Its progress appears from
 
 OTHER SUCCESSFUL ST0BE8. 
 
 89^ 
 
 the following comparison, but it should be added that 
 the year 1887 ended Aug. 20, 1888, and so on, while the 
 figures under 1890 are only for the nine months ended 
 May 20, 1891 : 
 
 1887. 
 
 1888. ' 1889. 
 
 
 Capital stock . . . 
 
 Net profits 
 
 No. of Members. 
 
 Expenses 
 
 Gross sales 
 
 $2,007 
 
 355 
 
 80 
 
 1,612 
 
 $14,106 
 
 $4,756 $9,620 
 
 753, 909 
 
 120 152 
 
 1,759 2,364 
 
 $21,32ll$30,34 
 
 $20,720 
 
 1,917 
 
 228 
 
 3,541 
 
 $42,657 
 
 *$ 9,276 
 t 3,934 
 * 145 
 
 t 9,276 
 t$108,467 
 
 It is to be noted that the net profits are over thirty 
 per cent on the average capital, while the economy of 
 the management is shown by the fact that the expenses 
 were only eight and one-half per cent on the sales, in a 
 small city where goods have to be delivered to consumers. 
 
 The Quarterly Statement of the secretary, Eneas 
 Cash, is very plain, though not as clear or as well made 
 up as Arlington's balance sheet. The report is printed 
 as an eight page pamphlet, including a list of the trad- 
 ing done by cash purchasers, and concludes with timely 
 remarks from the secretary. We print in full the report 
 for the fourteenth quarter ended Jan. 20, 1891, omitting 
 only the members' list : 
 
 SECEETARY'S REPORT 
 
 Of the Financial Transactions of the Lyons Cooperative 
 Association for the Quarter ending Jan. 20, 1891. 
 
 Mb. President and Fellow-Laborers. For the 
 fourteenth time I have the honor to present to you the 
 quarterly report of the financial transactions of the As- 
 ^sociation, and as usual it is with pleasure I have to 
 inform you that it has been fairly successful, as you will 
 learn by the following summary of the business dne 
 by us : 
 
 The Association had on hand at the close of the thir- 
 teenth quarter :
 
 90 HOW TO COOPERATE. 
 
 FOBH OF QUABTEBLY STATEMENT. 
 
 Merchandise In the grocery department $ 3,909 49 
 
 Merchandise in the meat department 100 27 
 
 Merchandise in the clothing department 4,930 32 
 
 We bought during the quarter 
 
 Merchandise for the grocery department $ 8,960 90 
 
 Merchandise for the meat department 2,315 44 
 
 Merchandise for tlie clothing department 2,195 79 
 
 f 13,472 31 
 
 Total 22,412 21 
 
 We sold during the quarter 
 
 Merchandise in the grocery department amount- 
 ing to S 8,704 51 
 
 Merchandise in the meat department amounting to 2,849 32 
 Merchandise in the clothing department amount- 
 ing to 3,256 78 
 
 Total sales for the quarter $14,810 61 
 
 We had on hand on January 20th merchandise in 
 
 grocery department 4,622 43 
 
 Merchandise in meat department 266 67 
 
 Merchandise in clothing department 4,521 17 
 
 $ 24,220 88 
 
 Total gross profits on merchandise 1,808 67 
 
 We were allowed discounts on groceries amount- 
 ing to 60 82 
 
 Discounts on clothing 284 30 345 12 
 
 We received for rents of buildings 40 55 
 
 Total gross profits of $2,194 34 
 
 We paid expenses of grocery department amount- $ 724 81 
 
 Ing to. 
 
 We paid expenses of meat department 217 98 
 
 " ' clothing " . 25167 
 
 Allowed for bad debts, grocery 67 31 
 
 " " " meat 8 88 
 
 " " " clothing 130 
 
 Insurance, taxes, etc 42 25 
 
 Paid Interest on purchase real estate 200 00 
 
 Amount placed to credit of stock depreciation fund 
 
 for repairs to fixed stock, being 2J per cent of 
 
 gross profits. 54 85 
 
 Dividend for quarter ending Jan. 20th, 1891 being 2 
 
 per cent. [250.74] on capital and 6 per cent. 
 
 [357.16] on paid purchases 607 90 
 
 Balance, placed to credit of sinking fund 17 39 
 
 $2,194 34 
 
 The following statement will show you the assets and 
 liabilities of the association on January 20, 1891, and 
 from it you-can learn all you desire or that is necessary 
 to know of the financial standing of the association. :
 
 OTHER SUCCESSFUL STORES. 
 
 91 
 
 Balance Sheet. 
 
 Fixed stock 
 
 Real estate actual cost 
 
 Cash held by treasurer 10 98 
 
 Casli held by mauager 1,350 52 
 
 Book accounts, grocery 3,527 20 
 
 Book accounts, clothing 458 59 
 
 Book accounts, meat 262 29 
 
 Merchandise, inventory grocery 4,622 43 
 
 Merchandise, Inventory clothing 4,521 17 
 
 Merchandise, inventory meats 266 67 
 
 Bills payable 
 
 Stock depreciation fund. . 
 
 Cash on deposit 
 
 Sinking fund 
 
 Dividend for quarter 
 
 Capital balance 
 
 Assets. .Liabilities. 
 
 $ 1,260 98 
 5,675 99 
 
 1,361 60 
 
 4,248 08 
 
 9,410 27 
 
 $21,956 82 
 
 $4,642 91 
 
 23 18 
 
 540 92 
 
 266 38 
 
 607 90 
 
 16,875 53 
 
 $21,966 82 
 
 Total paid-up capital $16,875 53 
 
 " interest-bearing capital 12,537 21 
 
 " paid-up purchases for quarter 5,909 21 
 
 " dividend at 2 per cent, on interest-bearing capital and 6 
 
 per cent, on paid-up purchases amounts to 607 90 
 
 Membership October 20th, 1890 167 
 
 Members admitted during quarter 27 
 
 184 
 Members withdrawn during quarter 4 
 
 Total membership January 20th, 1891 180 
 
 You will pardon me, I know, if I answer some of 
 those who are trying to injure us, by showing you what 
 profits the association has made since it has started in 
 business and what those who have withdrawn from the 
 association have received during the same time : 
 
 
 Dividends 
 Declared. 
 
 Dividends 
 Withdr'n. 
 
 
 $ 12 27 
 59 50 
 120 56 
 162 14 
 
 195 76 
 134 50 
 160 67 
 272 00 
 276 72 
 158 70 
 
 196 92 
 276 58 
 608 92 
 607 90 
 
 
 ' ' " J anuary 20, 1888 
 
 
 " " April 20, " 
 
 65 
 
 < " " July 20, " 
 
 3 06 
 
 " < " October 20, " 
 
 4 91 
 
 " " " January 20, 1889 
 
 7 36 
 
 " < April 20, " 
 
 14 00 
 
 " " ' July 20, " 
 
 73 07 
 
 " " " October 20, " 
 
 46 48 
 
 " ' " January 20, 1890 
 
 39 68 
 
 " " April 20, " 
 
 58 18 
 
 ' << " July 20, " 
 
 38 49 
 
 " ' < October 20, " 
 
 69 00 
 
 " " " January 20, 1891 
 
 92 63 
 
 
 
 Total 
 
 $3,233 04 
 
 $446 40 
 

 
 92 HOW TO CO6PEKA.TE. 
 
 If we consider our dividend in the light that stock 
 companies or private enterprises do, namely, as profit 
 on the capital invested, we can easily see that we have 
 made a very profitable investment, for $607 dividend on 
 $12,539 capital would be equal to four and eight-tenths 
 per cent every three months, or over nineteen per cent 
 per annum on the capital stock of the association. Do 
 you want any better investment ? 
 
 You can thus see that over one-eighth of our net 
 profits has been paid out to shareholders who perhaps 
 lent a too willing ear to persons whose interests lie in 
 creating a want of confidence in this association. Seven- 
 eighths of our shareholders have had confidence enough 
 in their association to leave their dividend as capital. 
 In my estimation those who determine to remain with 
 us are the lucky ones, for in the end they will share in 
 the increase in value of the property of the association, 
 which, judging by recent sales of property near to us, 
 is now worth double what we paid for it. Those who 
 have left us have lost their share of any such increase. 
 
 There are many objections made to our methods of 
 doing business which I would like to answer and which 
 would not be either made or to be answered if each one 
 of the members would study the principles of coopera- 
 tion and, after being thoroughly satisfied of its merits 
 and benefits, use all their endeavors to push the useful- 
 ness of the association by both their patronage and ad- 
 vocacy. Especially do our members want to learn that 
 the association's stores are theirs to the extent of their 
 capital and their purchases, and that every cent of profit 
 made by the association is given to each in proportion 
 to the amount of their purchases (bought and paid for) 
 during the quarter. In other words, each one gets his 
 goods at the cost of buying and distributing them. If a 
 man has one hundred dollars capital in the association 
 he owns one one-hundred-and-sixtieth of lands, houses
 
 OTHEB SUCCESSFUL STORES. ^ 
 
 and goods and of everything that the association owns, 
 and for every one hundred dollars more that he has his 
 interests are increased by one one-hundred-and-sixtieth. 
 He is a poor business man who will own a store himself, 
 hire clerks, etc., and give his trade and the profits 
 thereon to one of his competitors. Looking over the 
 list of shareholders leads one to the belief that we have 
 just such men among us. They put their capital in 
 with us ; we have clerks paid from the profits made with 
 that capital, yet our clerks might stand idle while others 
 live on the profits of the trade furnished by our share- 
 holders to them. 
 
 . To the vast majority of our shareholders, however, I 
 have to extend the thanks of the management of the 
 association for the trust, confidence and patronage given 
 by them, and ask them to continue their noble endeav- 
 ors. You will be called on to-night to elect three di- 
 rectors. Select the best men or women you can find. 
 Select them for their fitness and ability to carry on the 
 business successfully. Let your deliberations tend to 
 the prosperity of the association, and going hence resolve 
 that you will make Lyons cooperative association the 
 greatest, strongest, grandest and best of the institutions 
 of this fair city. " 
 
 Further Insight into the workings of the Lyons 
 association, and useful hints for all cooperators, will be 
 found in the secretary's remarks for the thirteenth quar- 
 terly report: **From the foregoing you will learn that 
 the shareholders of the association buy only about one- 
 half the goods that are sold by the association ; that we 
 made a gross profit of fifteen per cent on all goods sold ; 
 that we sold goods as cheaply as our competitors did and 
 that now by declaring an eight per cent dividend our 
 shareholders have bought their merchandise eight per 
 cent cheaper than they could have bought it anywhere 
 else. If every shareholder had done their full duty by
 
 94 HOW TO COOPERATE. 
 
 the association and for their own best interests, they 
 would have purchased all the goods they needed at their 
 own store besides inducing all their friends to do the 
 same. If they had done this our sales would have been 
 increased fully 13,000 more with very little (if any) 
 more expense, and at the same rate of profit we would 
 have been enabled to declare a twelve per cent dividend 
 instead of an eight per cent one. 
 
 "I do not like to find fault, but a great many of our 
 shareholders cause the association considerable expense 
 by calling for goods at unreasonable hours ; by waiting 
 with their orders till the rush succeeding the monthly 
 pay day, and by being over-particular and exacting in 
 purchasing and judging the goods they purchase. They 
 are of the opinion, I presume, that as they are owners of 
 the establishment their whims and fancies must be grat- 
 ified. For instance : One man while a shareholder 
 could not be pleased or satisfied with the goods sent him 
 and withdrew his capital from the association. After a 
 month or so he again began to buy regularly from us, 
 and he is now as easily pleased as any one. Our share- 
 holders ought to remember that the greater expense they 
 cause the association the less, their dividends must be. 
 Therefore shareholders ought to see that two ideas are 
 fully carried out : First, that all the trade they can 
 command or persuade be given to the association, and 
 secondly, that they cause the association .as little expense 
 as possible. These principles fully carried out, the 
 greatest measure of success will be obtained. 
 
 **To carry on the business successfully a sufficiency of 
 capital is necessary, and the association must look to its 
 members to furnish it. They cannot expect to become 
 millionaires from an investment of five or ten dollars. 
 If we had enough capital we could start a dry goods 
 department as well as many other lines. Every one has 
 to purchase dry goods, etc., and our members might as
 
 OTHBK SUCCESSFUL STORES. 95 
 
 well be saving for themselyes the profits now given to 
 others on these articles. This association pays eight per 
 cent on cash paid in on capital after the expenses of 
 management and before any other deduction is made 
 from the profits, and this dividend begins to accrue 
 almost from the time the money is given to the associa- 
 tion. Where can you find any savings institution that 
 pays eight per cent interest on money or one that can 
 furnish better security than is furnished by our associa- 
 tion ? It is therefore beneficial for any one to place his 
 surplus earnings in as capital in the association, and its 
 manager, having money enough to promptly pay for the 
 goods he buys, will be enabled to make increased profits 
 and will allow the association to pay larger dividends. 
 We can make seven per cent within a day after you give 
 us the capital by discounting the bills due for merchan- 
 dise, and these profits go to swell your dividends. The 
 security the association offers is a lot and block of build- 
 ings that cannot be bought or built for $6,000, a stock 
 of merchandise worth at wholesale prices $8,900, horses, 
 wagons, scales, etc., in good repair worth over $1,000, 
 book accounts due the association and worth $3,500, 
 cash on hand amounting to $1,533. Against these assets 
 we owe $6,060, leaving a balance of $11,870 to furnish 
 security to the most skeptical. Any business man 
 would be willing to accept of such security at any time, 
 and our experience has been that good business men, 
 after thoroughly investigating our securities, have told 
 us that we could obtain credit from them for any amount 
 we needed. 
 
 "Remember that the cooperative store is your store. 
 You are shareholders and should trade or buy at your 
 own store. Remember that you are assured full weights 
 and measures and that the article will be of the quality 
 you buy ; that you in the first place buy it as cheaply in 
 general from the association as you can anywhere else
 
 96 HOW TO OOOPBRATB. 
 
 (if you buy cheaper you generally buy an inferior article 
 or in smaller quantity), and secondly, besides getting 
 large interest on your money you get a reduction on the 
 cost of your goods of from three to eight per cent. 
 This reduction you do not get if you buy elsewhere. 
 Remember that you are building up an institution that 
 in times of depression may be enabled to benefit its 
 members by furnishing them employment, the profits 
 from which will go to those who do the work, not to a 
 favored few." 
 
 The Kind of Men. The membership at Lyons em- 
 braces all sorts of people foreign as well as native born. 
 They were no more likely to work in harmony than a 
 like number of workingmen of equal skill and intelli- 
 gence in any town. The president for the past two 
 years, S. A. Sleight, is a carpenter, born in Delaware 
 County, N. Y., in 1835, who has followed his trade 
 since he left the farm at twenty-one, save two years in 
 the army. The treasurer from the start, J. G. Lollick, 
 received a good common school education in Denmark, 
 his native country, farmed it there until 1873, when he 
 went into the Iowa lumber yards, and is now with a 
 lumber firm. The secretary, whose painstaking reports 
 are models of completeness and cleverness, is a native of 
 Prince Edward Island, graduated at the Prince of Wales 
 college there in 1869, and is now forty years old. He 
 taught school for ten years, and in 1880 removed to 
 Lyons, where he entered the employ of Gardiner, Batch- 
 elder & Welles, lumber manufacturers. He became su- 
 perintendent of the shipping department the same year, 
 and still holds the position. He has filled various city 
 offices and has been secretary of the " Coops " from tlie 
 start by unanimous reelection. Thomas H. Angell, the 
 manager and buyer for the grocery department, is an 
 Illinoisan, now in his twenty-eighth year, who was edu- 
 cated in the common schools of his native county. White-
 
 OTHER SUCCESSFUL STORES. 97 
 
 side, farmed until he was twenty, then worked in a livery 
 stable one year, and in 1882 entered the employ of the 
 above named firm in Lyons and continued with them 
 until he took charge of the association's affairs Aug. 12, 
 1887. The usually unprofitable (to cooperators) meat 
 department has been very successful in this case through 
 the management of Henry Maass, a thrifty and steady- 
 going German thirty-four years old, who had had long 
 experience in the business in Germany and also in Iowa. 
 The clothing department is in charge of Charles U. 
 Ilenle, twenty-seven years old, who was born in Lyons, 
 attended St. Vincent's college, and spent ten years in 
 two of the leading clothing houses in Lyons, so that he 
 brought a thorough knowledge of the business to the 
 ''Coops." 
 
 THE TRENTON COOPERATIVE ASSOCIATION. 
 
 A Big Dividend Payer. This "Coop" enjoys the 
 honor of paying the largest dividend upon purchases of 
 any cooperative store in the country twelve to fourteen 
 per cent. Extremely careful management and cash deal- 
 ings are the real reasons for the success, but the compar- 
 atively high retail prices current at Trenton, ^ew Jer- 
 sey, account for the abnormal size of the dividend. The 
 store maintained full retail prices from the start. It 
 was an outgrowth of labor disturbances early in 1885, 
 and began business on May 5 of that year with ninety 
 members holding one hundred and twenty shares of five 
 dollars each, upon which one hundred and fifty dol- 
 lars was actually paid in, the balance being collected at 
 the rate of not less than fifty cents per week. Member- 
 ship was open to all, and the by-laws are on the true 
 Koch dale lines. Five per cent of the net profits go to 
 the surplus, one and one-half per cent interest quarterly 
 is paid on capital, and the balance is declared in divi- 
 7
 
 98 HOW TO COOPERATE. 
 
 dend on employes wages and on sales. Indeed, the pre- 
 cise objects of the society are : 
 
 First. To supply its members and others with articles for household 
 and personal use that are unadulterated and of good quality. 
 
 Second. To buy such articles at wholesale, to sell the same for reta'l, 
 and to divide the profits thus realized among its members and others 
 in proportion as they have contributed to the production of said profit 
 by their capital, labor or custom. 
 
 Third. To provide a safe and profitable Investment for the capital 
 saved, in small sums, by its members. 
 
 In thus sharing profits with Employes (who are 
 also shareholders), Trenton surpasses Arlington, but it 
 does not pay its help quite as large wages outright. 
 Each member has but one vote, and ''no member in 
 arrears to this society on any account whatever, two days 
 previous to any meeting, shall be entitled to vote." The 
 president and treasurer, with eight others, constitute the 
 directors ; three successive absences from directors' meet- 
 ings, without satisfactory cause, vacates the place of such 
 absentee. All payments for goods are by bank check 
 signed by the treasurer, and countersigned by the secre- 
 tary and manager, and the oflBcers can only borrow 
 money when authorized by vote of the society. Other- 
 wise the by-laws (also auditing and inventorying) are 
 essentially like Arlington's, with some differences on 
 important points, as follows : 
 
 Article III, Sec. 4. Any member of the board of directors, or other 
 oflicer, who shall accept any other office or place of profit in this soci- 
 ety shall first resign the one held by him before entering upon the 
 duties of the new office to which he has been elected or appointed ; this 
 rule shall not apply to any officer who may be elected to represent the 
 society in any wliolesale co5perative society of which it may become a 
 member. No member of the board of directors shall be intei-ested in 
 any contract with the society, excepting when he is a member of a firm 
 or company which has entered into contract with or has done work for 
 the society, in which case he shall not be present or vote when such 
 contracts are being discussed or acted upon. 
 
 Art. Ill, Sec. 11. At the regular annual meeting in each year an aud- 
 iting committee of three members shall be elected to serve, for one 
 year, and until their successors are elected and qualify; no member 
 shall be eligible to serve on the aiiditing committee who holds any 
 other position of honor, trust or profit in tlie society; it shall have
 
 OTHER SUCCESSFUL STOKES. 99 
 
 power to employ experts at tlie expense of the society, if, in their judg- 
 ment, tliis is necessary ; it shall audit the accounts of the society quar- 
 terly, and if found correct, shall so certify on the books of account; it 
 shall lay before each quarterly meeting a balance of the receipts and 
 expenditures, also of the assets and liabilities of the society, togetlier 
 with a statement of the business of the society for the last quarter, 
 and its then condition ; it sliall have power to call for and examine all 
 books, papers and documents belonging to the society, and examine 
 any officer, employe, member or other pei'sons, as witnesses ; tlie bal- 
 ance sheet shall bear its certificate of correctness. In case a vacancy 
 occurs in the auditing committee, the board of directors shall have 
 power to fill the vacancy until the next quarterly meeting of the soci- 
 ety, and the meeting shall elect a person to fill the vacancy for the 
 unexpired term. 
 
 Art. IV, Sec. 4. All share-certificates shall be transferable to persons 
 approved by the board of directors; such approval to be given before 
 the transfer can be made; the society reserves the right to purcliase 
 all shares where the approval of the board to transfer is not granted, 
 at a price not to exceed the book value of said share or shares. 
 
 Sec. 6. A member being in distress may withdraw any withdrawable 
 capital he may have in the society, at the discretion of the board of 
 directors. 
 
 Sec. 7. Should the board of directors have more cash on hand than 
 they can profitably invest, they shall have the power to reduce the 
 number of shares by retiring, at par value, a sufficient number from 
 those members who hold the largest amount; members may allow 
 their surplus cash to remain in the funds of the society, but shall not 
 receive interest thereon. 
 
 The Members are mostly men who work in the pot- 
 teries or the factories, of all nationalities, Scotch, Eng- 
 lish, Americans and Germans being represented in the 
 present board of directors. The officers are all under 
 bonds. The secretary, Benjamin Holland, who is the 
 bookkeeper and accountant, was formerly a member of 
 the Tiinstall (England) cooperative society, but while 
 informed as to cooperation liad had no practical experi- 
 ence in it ; he was a bookkeeper. The manager of the 
 stores, Frank Glenn, a bright American, had been work- 
 ing in a grocery store when he accepted tliis place. 
 
 How It Grew. The store met the usual opposition 
 from grocers and dealers. Its worst fight came when it 
 embarked in the coal business, as the retailers would 
 not admit it to the combination. However, the "Coop" 
 found it easy to buy coal as cheaply as any one since it
 
 100 
 
 HOW TO COOPEBATE. 
 
 had the cash to pay for coal, while it maintained full 
 retail prices. The sales of coal and wood the first three 
 months (Sept. 26 to Dec. 31, 1890) were $3,295, which 
 showed a gross profit of $1,066 (thirty-three per cent) and 
 
 
 
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 mj/B^^^'\ ^% 
 
 
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 Fio. 9. Thos. H. AifOELi., Manager of the Lyons Cooperattvb 
 Association. 
 
 a net profit of $614, or over seventeen per cent, which 
 was divided in the usual way. Such profits were a reve- 
 lation, and naturally the quarterly report is the only 
 advertising the store requires. It is only a question of 
 time when the " Coop" will absorb the bulk of the cash
 
 OTHEB SUCCESSFUL STORES. 101 
 
 retail trade at Trenton, as is already proving the case 
 at Lawrence. 
 
 The store had five hundred and sixty members July 1 , 
 1891, the total number of members registered from the 
 start being nine hundred and twenty-seven. About two- 
 thirds of the trade is to members, the rest to non-mem- 
 bers, who get only half the usual dividend. Monthly 
 meetings of both members and directors are held, to 
 which a financial statement is submitted. At every 
 third meeting the quarterly statement is presented. As 
 usual with the most successful stores, the attendance of 
 members at these meetings is light, there being only 
 from twenty to fifty persons present. The society owns 
 its main store, which has two halls above that are rented. 
 It also owns its stables. This property is to-day worth 
 over 120,000, though it cost with improvements only 
 $16,500, and stands on the books at $14,485, nearly 
 $4,000 having been charged off to depreciation account. 
 Two and one-half per cent is also charged off quarterly 
 for the depreciation of fixtures. The society employs 
 two order wagons and three delivery wagons. One mana- 
 ger, one secretary, two butchers, seven grocery clerks, 
 one hostler and one coal clerk. The same system of 
 trading with outside stores that is practiced by the Ar- 
 lington society is followed. 
 
 The Business is Practically all Cash. The 
 cashier or bookkeeper recognizes only cash transactions. 
 If any credit is given, it is done on the responsibility of 
 the store manager, and a record of it kept in the mana- 
 ger's book on the counter. Credit is never given in 
 excess of a member's holdings of capital, which is made 
 liable for debts. A somewhat different system of store 
 management than at Arlington is used. The member 
 gets an itemized receipted bill for his purchases instead 
 of the usual check. A duplicate of this receipt is handed 
 in to the cashier, who writes up the same in the mem-
 
 102 HOW TO COOPEEATB. 
 
 ber's pass-book and also under the member's account in 
 the ledger. The member can thus audit his own ac- 
 count, having the vouchers to compare with his pass- 
 book. Non-members receive the ordinary check, as no 
 accounts are kept with them. Each member thus has 
 also a means of insuring the honesty of both the store 
 clerks and the bookkeeper. The manager of the store 
 has nothing to do with the cashier or bookkeeper except 
 to make his own cash and sales correspond with the slips 
 turned into the office. What little credit is allowed is 
 always paid up in full before the quarterly report is 
 finally closed. 
 
 The dividends are paid in cash to members. They 
 actually handle the money, and this gives tbem more 
 confidence in the store than if the "divy" was simply 
 passed to their credit on the books. By this method, 
 however, the members do not accumulate as much capi- 
 tal as they otherwise would. They are, of course, 
 invited to invest their dividend in more shares, but the 
 increase of capital has only been gradual. When asked 
 why they did not reduce their dividend and use part of 
 their profits to pay off their mortgage, Secretary Holland 
 replied that they didn't need to, since they only had to 
 pay six per cent interest on the money, and it was as 
 cht.'p to have the capital in that form as in shares. We 
 differ emphatically from this reasoning, however, and 
 regard this as the weakest point in tlie Trenton society, 
 which borrowed $2,000 more this spring for further pur- 
 chases of real estate. Nevertheless, it will be noted 
 that reserves, mcluding reserve and educational fund, 
 amount to $5,225, in which the society is in the habit of 
 figuring the amount allowed for depreciation on real 
 estate, which swells the total reserve to over 19,000, or 
 seventy-five per cent of the share capital. The remark- 
 ably good management and steady progress of the Tren- 
 ton society is shown by the following annual comparison :
 
 OTHER StrcCESSFTJL STORES. 
 
 103 
 
 Year of Business 
 
 Capital at close of year 
 
 Total sales 
 
 Gross profits 
 
 Expenses 
 
 Net profits 
 
 Per cent expenses to sales 
 Per cent profits to capital.. 
 Per cent dividends 
 
 1885. 
 
 1886. 
 
 $ 5,787 
 
 1887. 
 
 $ 8,844 
 
 1888. 
 
 $ 9,201 
 
 1889. 
 
 $ 9,823 
 
 $ 2,430 
 
 15,210 
 
 49,958 
 
 93,592 
 
 97,520 
 
 84,527 
 
 3,394 
 
 11,753 
 
 22,952 
 
 22,882 
 
 20,757 
 
 2,174 
 
 5,100 
 
 7,643 
 
 8,385 
 
 7,880 
 
 1,220 
 
 6,653 
 
 15,309 
 
 14,497 
 
 12,877 
 
 14.2 
 
 10.2 
 
 8.1 
 
 8.6 
 
 9.3 
 
 51 
 
 115 
 
 173 
 
 157 
 
 131 
 
 8 
 
 14 
 
 15 
 
 13 
 
 14 
 
 1890. 
 
 $11,745 
 
 90,440 
 
 23,488 
 
 8,590 
 
 14,898 
 
 9.5 
 
 127 
 
 14 
 
 The total sales for the six years are $431,247; total 
 profits, $65,454, of which within a fraction of $60,000 
 have been paid back to customers in dividends and inter- 
 est, and the balance placed to reserve account. The 
 dividends have averaged thirteen per cent and interest 
 six per cent, a return equal to one hundred and twenty- 
 six per cent per annum on the share capital reported at 
 the close of the year. The expenses averaged nine and 
 nine-tenths (practically ten) per cent on the sales. 
 
 A Still Better View of the business will be gained 
 from the following annual statement for the year ended 
 Dec. 31, 1890 : 
 
 Sixth Annual Statement of the 
 
 TRENTON COOPERATIVE ASSOCIATION. 
 
 General Statement. 
 
 Assets. 
 
 Inventory of groceries and 
 l)rovlslons Jan. 1, 1891. 
 
 Main store $6,015 16 
 
 Hranch store 904 50 
 
 I^ess ten per cent. 
 
 $6,919 66 
 691 96 
 
 Net inventories 6,227 70 
 
 Fixture account 4,436 79 
 
 Iloal estate (less deprecia- 
 tion) 14,485 38 
 
 Cash account 1,000 00 
 
 Cash balance 3,289 45 
 
 Total assets $29,439 32 Total liabilities 
 
 Liabilities. 
 
 Share capital $11 ,744 87 
 
 Divideua and interest (due 
 
 Jan. 1) 3,419 65 
 
 Reserve fund 3,584 03 
 
 Educational fund 1,040 55 
 
 Land fund (anit. depreci- 
 ation) 3.931 53 
 
 Mortgage 5,000 00 
 
 Balance undivided 118 69 
 
 9,439 32
 
 104 
 
 HOW TO COOPERATE. 
 
 Cash Account. 
 
 Receipts. 
 
 Cash balance, Jan. 1, 1890. $4,757 75 
 
 Casli on sales 87,145 37 
 
 Entrance fees 22 75 
 
 Rent from halls 521 78 
 
 Horse board, etc 250 35 
 
 Fixturessold 50 00 
 
 Cash on shares 4,584 37 
 
 Total receipts $97,332 37 
 
 Expe}iditure. 
 
 Mdse. purchased 
 
 Salaries paid 
 
 Expense account 
 
 Fixture and or- 
 ganization 
 
 Dividend and in- 
 terest acct Iw o J 
 
 Shares withdrawn 
 
 Coal account 
 
 Real estate account 
 
 Mortgage account 
 
 Cash balance Jan. 1, 1891 
 
 
 P.- 
 
 .$65,424 23 
 
 . 6,692 25 
 
 . 1,860 18 
 
 . 1,605 41 
 
 . 12,036 42 
 
 . 2,662 65 
 
 . 1,000 00 
 
 . 1,761 78 
 
 . 1,000 00 
 
 . 3,289 45 
 
 Total $97,332 37 
 
 Share Capital. 
 
 Receipts. 
 
 Balance Jan. 1, 1890 $9,823 15 
 
 Received since 4,584 37 
 
 Total . 
 
 Expenditure. 
 
 Withdrawn $2,662 65 
 
 Balance 11,744 87 
 
 ,407 52 Total $14,407 52 
 
 Merchandise Account. 
 
 Groceries and provisions 
 
 on liand Jan. 1, 1891 $6,919 66 
 
 Less ten per cent 691 96 
 
 Cash on sales. 
 
 6,227 70 
 87,145 37 
 
 Total $93,373 07 
 
 Groceries and provisions 
 
 on hand Jan. 1, 1890 
 
 Less ten per cent 
 
 (5,140 23 
 614 02 
 
 5,526 21 
 
 Purchased since 65,424 23 
 
 Gross profits 22,422 63 
 
 Total $93,373 07 
 
 Disposal of Gross Profits. 
 
 Gross profits $22,422 63 
 
 Salary account $6,692 25 
 
 Expense account 1,448 15 
 
 Net profits 14,282 23 
 
 Total $22,422 63 Total $22,422 (i3 
 
 Disposal of Net Profits. 
 
 Undivided Jan. 4, 1890 $1.30 95 
 
 Net profits for year 1890. . . 14,282 23 
 
 Total net profits $14,413 18 
 
 Reserve fund $747 48 
 
 Educational fund 355 05 
 
 Dividend an<l interest 12,276 Wi 
 
 Ajipropriat'ii to land fund 915 10 
 Balance undivided Jan. 
 
 1.1891 118 G9 
 
 Total $14,413 18 
 
 We, the auditors, have examined the books of the society, and cer- 
 tify that they correspond with the foregoing statement: 
 
 Jan. 16, 1891. 
 
 Thomas Mason, 
 Charles H. Simmerman, 
 
 CHAItLES GEBERT. 
 
 The quarterly statement of the Trenton is explicit, 
 businesslike and accurate. It is made up in the same
 
 OTHER SUCCESSFUL STORES. 105 
 
 form as the above, and therefore need not be repeated. 
 The only difference is that the disposal of net profits is 
 described more in detail. Thus, for the twenty-fourth 
 quarter, ended March 31, 1891, the sales were $22,099, 
 the gross profits $5,432 and the net profits $3,484. The 
 latter were divided as follows : Five per cent to the 
 reserve fund, $180 ; two and one-half per cent to the 
 educational fund, $86 ; one and one-half per cent inter- 
 est on shares, $170 ; twelve per cent dividend on mem- 
 bers' trade of $19,732, $2,368 ; twelve per cent dividend 
 on salaries, $219 ; six per cent dividend to non-members, 
 $131 ; appropriation to land fund [allowed for deprecia- 
 tion], $302 ; balance undivided, $135. 
 
 THE ALLEGAliT ASSOCIATION. 
 
 A Substantial Success. The Cooperative Associa- 
 tion of the Patrons of Husbandry of Allegan County, 
 Michigan, was started in 1875, at Allegan, the county 
 seat. This section of the southwestern part of the State 
 is within the Michigan fruit belt. Allegan itself is the 
 center of a rich farming and lumbering region, the place 
 having some 2,700 population devoted to manufactures 
 and agriculture. The association therefore had about 
 the environment that will be the lot of most cooperative 
 efforts in rural or farming communities. It does quite 
 a business in shipping to city markets produce for the 
 farmers and selling it on commission. 
 
 At first each family in the fifteen granges in the 
 county made out a list of the goods it wanted for the 
 next thirty days, which was handed to the grange sec- 
 retary, with the money for the same, and forwarded to 
 a central purchasing agent (A. Stegeman, then as now 
 the prime mover in the matter), by whom the orders 
 were bulked, the goods bought to the best advantage 
 and delivered within ten days. But people found it dif- 
 ficult to order ahead, goods had to be kept in stock, so
 
 106 HOW TO COOPEEATE. 
 
 the concern was incorporated with the above title in 
 April, 1876, with $5,000, to which Mr. Stegeman added, 
 as a loan, nearly a like amount. 
 
 Not the Rochdale System. Goods were and are 
 still sold at cost, with four per cent added to each item 
 of purchases in the members' pass book, thus : 
 
 Name, Goods Bought Four Per Cent Total Price 
 
 James Foster $15.50 .62 $16.12 
 
 The four per cent and the discount on goods bought 
 on time but paid for in cash, with the earnings on sales 
 of fruit and produce for farmers, are the main sources 
 of income with which to pay expenses and accumulate 
 profits. Persons not members of the Grange can buy a 
 permit to trade at the store for three dollars for a year 
 or one dollar for three months. For the first four years 
 the profits warranted paying ten per cent interest on the 
 capital, but this was regarded as usury and not coopera- 
 tion and the manager insisted upon reducing it to six 
 per cent, which was agreed to after a heated controversy. 
 Membership is confined to the order of Patrons of Hus- 
 bandry, and the shares (five dollars) are transferable to 
 Patrons. The members in each grange who hold shares 
 to the amount of two hundred dollars are entitled to 
 one director, each shareholder having one vote and also 
 another vote for each additional fifty shares owned. 
 The shares are withdrawable upon due notice, but usu- 
 ally such notice is not insisted upon. Consequently the 
 membership varies, having been as high as 527, but in 
 April, 1891, was 396. The capital stock has been as 
 high as $40,000, while in the spring of 1891 it was but 
 little over one half that. The association also receives 
 money on deposit, payable on demand, upon which five 
 per cent interest per year is paid. Such deposits are 
 often as large as the capital stock of the association, so 
 great is the public confidence in it, and are withdrawn 
 only when actually needed.
 
 OTHER SUCCESSFUL STOEES. 
 
 107 
 
 Tried by Fire. The cooperative store was burned 
 at a total loss of $50,000 (no insurance) worth of goods 
 in the destructive fire that visited Allegan at noon on 
 March 14, 1884. Some $8,000 or $10,000 worth or stock 
 was saved. But the "Coops" were not disheartened. 
 By eight o'clock the next morning their store was re- 
 opened for business in temporary quarters, the sales that 
 day being over $400. The store sells for cash only, 
 except that it handles a great deal of fruit and produce 
 for its farmer members, the buyers of which in the cities 
 are usually allowed thirty days' time. The records 
 were all burned in the fire, but since 1884, may be thus 
 summarized : 
 
 1884,9 months. 
 
 1885 
 
 1886 
 
 1887 
 
 1888 
 
 1889 
 
 1890 
 
 Total 
 
 Average 
 
 Total 
 
 Gross 
 
 Expenses 
 
 Sales. 
 
 Income. 
 
 and Int. 
 84.181 
 
 8123,551 
 
 $6,067 
 
 161,292 
 
 8,060 
 
 7,191 
 
 169,701 
 
 8,000 
 
 7,279 
 
 165,384 
 
 8,590 
 
 7,886 
 
 159,736 
 
 8,381 
 
 8,069 
 
 160,054 
 
 8,786 
 
 8,195 
 
 192,827 
 
 11,189 
 
 9,331 
 
 1,122,545 
 
 59,073 
 
 52,132 
 
 8160,363 
 
 88,439 
 
 87,447 
 
 81,886 
 869 
 721 
 705 
 312 
 592 
 1,858 
 6,943 
 992 
 
 The full annual statement shows a gain of from $2,000 
 to $5,000 per year in net assets or stock on hand, in 
 addition to the balance averaging nearly $1,000 a year 
 added to the sinking fund. The fund thus accumulated 
 since the fire amounts to nearly $20,000. No interest is 
 paid on this fund, which is working capital free of cost. 
 The deposits at five per cent also make cheap capital. 
 This keeps down the gross sums paid in interest on the 
 regular capital stock, which has varied from $30,000 to 
 $20,000, and gives the association money enough to 
 transact a big business. 
 
 The Light Expenses Explained. A sample of 
 the monthly statements required by the by-laws to be 
 made by the manager to the directors partly explains 
 the secret of such small expenses. It is as follows : 
 "Statement for May, 1890 Amount of sales, $14,782.-
 
 108 
 
 HOW TO COOPERATE. 
 
 99; percentage on same at 4 per cent, $613.84; cash 
 discounts on bills rendered for goods bought, $400 ; 
 boxes and crates sold, etc., $32.78 ; total income, $1,036.- 
 62; expenses, $695.57; surplus to balance, $341.06. 
 The expenses were: Sixty-five gallons of oil, $6.82; 
 washing, 75 cents; rent, $100; postal cards, $1.00; 
 
 Fig. 10. New Stoke of the Allegan County CootEKATOKS. 
 
 envelopes, $21.80 ; extra help, $10.20 ; five weeks' wages 
 of regular employes Atkins $75, Stein $50, Tobin $45, 
 CoUoff $50, Bom $40, Robinson $35, Vinda $35, Dora 
 $35, Mrs. Stegeman $90, A. Stegeman $100; total ex- 
 penses, $695.57." This total is just 4.7 per cent on the 
 sales for the month, or if the proportionate amount of 
 interest on capital were added the expense would be 5.4
 
 OTHER Successful stores. 109 
 
 per cent on sales. The month is certainly a fair sample 
 of the business as will be seen by comparing it with the 
 seven years' average. It is assumed that freight, cart- 
 age, telegrams, express, etc., are paid for by adding to 
 the actual cost of goods an amount sufficient to cover 
 these items. Thus the four per cent commission is net 
 for the actual operating expenses included in the state- 
 ment for May. The savings in not having to deliver 
 goods to customers, and by doing a big business for cash 
 only, are also large. 
 
 The Lessons of this Success. The personal ex- 
 pei'ience and suggestions of the man who has accom- 
 plished such results are valuable. Especially is this 
 true in a State where the Allegan "Coop" is the sole 
 survivor of twenty-eight so-called cooperative stores 
 started, about the same time during the period of fervent 
 but uneducated Grange enthusiasm. Moreover, it is to 
 be noted that this store aimed to effect its savings by 
 giving lower prices, instead of following the Rochdale 
 system of charging full retail values and dividing profits 
 in rebates to purchasers. Prices have not been cut to 
 an extreme, as is shown by the gain in inventory and 
 surplus. Mr. Stegeman writes : 
 
 " Starting out as we did, by differing from all other 
 corporations in selling goods at cost, we antagonized 
 every one in business. The general public is not aware 
 that in mercantile business certain standard goods that 
 the people know the price of are sold as leaders at but a 
 trifle above cost, Avhile others, the value of which people 
 cannot tell anything about, are sold at thirty-tliree to 
 two hundred per cent profit. These facts were, of 
 course, revealed by our system of selling goods at cost, 
 causing the public to accuse the other dealers, so that 
 the feeling that was aroused against the grangers, and 
 especially against the manager of their store, can be 
 readily imagined. No stone was left unturned to break
 
 110 HOW TO COOPERATE. 
 
 up the association's business, bribery and threats being 
 alike without avail. The other merchants united to 
 break our standing and credit and tried to prevent 
 wholesalers from dealing with us. After our store was 
 burned out, knowing that I had personally lost my all, 
 a party offered me the use of $30,000 to go into business 
 on my own account if I would agree not to run a grange 
 store. All such offers were declined, the other efforts of 
 the opposition were ignored, and the cooperative store 
 went right on with its work. 
 
 Just How the Store is Managed. ''As to the 
 actual running of the store, we have never advertised or 
 asked people to come and trade with us. We do not 
 allow 'shopping.' If a person wishes to buy, our help 
 will serve him ; but, if he simply wants to see what we 
 have and get our prices, we have no use for him. For 
 instance, a party wanted the price of some tools to see 
 where he could do best. I said : ' Go and get all the 
 prices you can ; bring them to me, and if I cannot save 
 you money I will advise you to buy where it will serve 
 your interests best, but I can't give you prices to take 
 elsewhere and sell us out.' He claimed that he was a 
 shareholder ; it was my business to post him. The re- 
 sult was that I told him to bring his pass book and draw 
 out his money. There is not a mercantile concern in 
 tins section that would not have sold him for less than 
 cost under such circumstances, in order to make him 
 dissatisfied with the cooperative store and undermine its 
 efforts. 
 
 A Stiff Back Bone Needed. "It will not do to 
 allow any Judas to remain. As the association has 
 always been able to meet any emergency, it has held the 
 supremacy over all fault-finding or dissatisfied elements. 
 They knew that if they found fault without cause they 
 would be requested to leave and informed that they were 
 not worthy to have the benefits of our system. Indi-
 
 OTHER SUCCESSFUL STORES. Ill 
 
 rectly, however, the general public have profited in two 
 ways by the cooperative stores : First, goods are sold 
 by other merchants cheaper than in any other place in 
 the State, on account of our being here ; second, by get- 
 ting their friends to come in here and buy for them. 
 Still, this policy has a wholesome effect on others, and 
 since we sell to shareholders and those who are not mem- 
 bers at the same prices there has not been a great de- 
 mand for the shares. 
 
 "Some complain that they don't want to take any 
 shares because they only pay six per cent not as much 
 as they could get elsewhere, or as they pay on the mort- 
 gage on their farms. To this I answer: 'You believe 
 in this cooperative effort. Do you know that it has 
 done a great deal for you and the people in this part of 
 the State ? If so, are you not willing to help sustain a 
 good effort, even though your neighbor is small enough 
 to accept its benefits without helping to furnish the cap- 
 ital whereby these benefits are made possible ? Would 
 you like to stand in his place and play his unworthy 
 part ? What kind of a man would it be that you saw as 
 you looked in the glass?' This reasoning will usually 
 settle the matter with the ordinary fair-minded person. 
 
 "Among the Strong Points of our success at the 
 start was my ability to buy goods and do business in my 
 own name in the interest of the order when the best 
 markets were closed against all cooperators. Another 
 strong point is that the business has been conducted as 
 though no one had anything to say about it except the 
 manager. The stockholders, directors and executive 
 committee have always had all the latitude they wanted 
 and made all the rules they wished. Then I have always 
 done what I thought was the right thing, whereas if I 
 had always done as the stockholders directed the asso- 
 ciation would not now be doing business. I know of no 
 mistakes that we have made unless it was in ever having
 
 112 HOW TO COOPERATE. 
 
 Started ; for, in the sixteen years in which this store lias 
 been conducted, I have yet to find the third person in 
 whom the real idea of genuine cooperation has taken 
 root. Even all the benefits received from a cooperative 
 effort are used competitively and mostly as such by the 
 people. So long as this is the case, so long will coopera- 
 
 FiG. 11. A. Stegeman, Manager Allegan Assoclvtion. 
 
 tion be only a name. The average man comprehends 
 ^combine' but does not understand cooperation." 
 
 One Useful Lesson. We venture to suggest, how- 
 ever, that the failure of the cooperative idea to take 
 root in Allegan county has been partly due to the fact 
 that the shareholders and local public left the business 
 very largely to one man. This gave him so much to do
 
 OTHER SUCCESSFUL STORES. 113 
 
 that it was impossible for him to become a center of 
 education in the principles of cooperation. Had the 
 shareholders and patrons of the store held frequent meet- 
 ings, set aside a small percentage of their surplus for 
 literature or lectures on the subject, the result might 
 have been different. There is a screw loose somewhere 
 when at the end of sixteen years' success the fear is 
 expressed that the cooperative istore might fail under 
 other management. It illustrates the folly of. one-man 
 power exclusively. It emphasizes also the great impor- 
 tance of educating cooperators and training certain mem- 
 bers so as to take any place in the management that may 
 suddenly become vacant. The Arlington cooperators 
 look after this point very carefully. 
 
 Comparison with the Rochdale Plan, In con- 
 clusion Mr. Stegeman makes the following arguments in 
 favor of his management (which is simply a close imita- 
 tion of the Civil Service system of London) in contrast 
 to the regulation Eochdale system : ''One cause of 
 failure with institutions of this kind is the want of an 
 able and experienced head to manage it, to meet compe- 
 tition, to reach the best markets and to get prices tliat 
 cannot be beaten. At the same time he must be willing 
 to take all the kicks and curses from those inside as well 
 as from those outside ; willing to be accused of all man- 
 ner of wrong doings by those whom he has helped, an I 
 still, for the sake of principle and the needs of the peo- 
 ple, keep right on regardless of all that is said and done. 
 
 * 'Another reason for failure is the attempt to under- 
 sell other stores a little, just to get all the trade they 
 can. Other stores waste a great deal of valuable time 
 on customers who are really hunting for prices or look- 
 ing at goods without intending to buy. Then they 
 make a mistake at the end of the first six months or 
 year in trying to pay a dividend to stockholders that 
 will satisfy them and another to customers. 
 8
 
 114 HOW TO COOPERATE. 
 
 " This manner of conducting the business is very ex- 
 pensive and seldom meets the acceptation of those inter- 
 ested. The question is at once raised : ' I wonder if 
 things are all right?' The opposition will not fail to 
 improve such opportunities to sow all the seeds of dis- 
 cord it can find ground for. Tlie result is that after a 
 little while people say, * 0, there is nothing in this coop- 
 eration, I can buy just as cheap or cheaper at the other 
 stores. The fellows who run the cooperative store are 
 getting rich and our profits don't amount to anything. 
 I am going to get my money out before the thing goes 
 down,' etc., etc. Then the end is sure to come, being 
 only a question of time. " 
 
 One can but reflect, however, that this association 
 would be on a far more enduring basis had its able man- 
 ager conducted it on true Eochdale lines. Its patrons, 
 too, would now have handsome savings to their credit, 
 whereas most of them probably have little to show for 
 the money saved by purchasing at reduced prices. This 
 is the weakness of the Civil Service system, while in the 
 opposite lies Rochdale's strength. 
 
 THE JOHNSON COUNTY COOPERATIVE ASSOCIATION. 
 
 The Most Notable Success in cooperation in Kan- 
 sas is the above association, located at Olathe. It was 
 organized June 14, 1876, at the height of the wave of 
 enthusiasm for cooperation created by the Patrons of 
 Husbandry. Unlike most efforts of the kind, the prime 
 mover in this society was a man thoroughly imbued with 
 the true principles of cooperation, and who was also 
 experienced in business matters as well as in farming 
 W. H. Toothaker, then master of the Kansas Stale 
 grange, who was president of the association for nearly 
 ten years. He was succeeded in the management by 
 H. C. Livermore, who is still retained. These coopera- 
 tors also operate the Patrons' cooperative bank at the
 
 OTHER SUCCESSFUL STORES. 
 
 115 
 
 same place, which is described in the chapter on that 
 subject. 
 
 From the outset the Kochdale plan was followed in its 
 purity, including actual cash transactions to the fullest 
 possible extent. Credit was allowed not to exceed thirty 
 dollars, and never in excess of the member's share capi- 
 tal, against which such credit was a lien. The only 
 exception was on the sales of farm machinery, for which 
 when necessary negotiable short-time notes are taken 
 from those in whose credit the management has perfect 
 confidence. The by-laws are printed in full in the Ap- 
 pendix. The store was opened July 27, 1876, with $800 
 of cash capital paid in by the 60 members, which has 
 since grown to $100,000 held by 700 members. From 
 the start full retail prices were maintained with rery 
 little cutting, and the same price was charged to all cus- 
 tomers. Purchases were kept account of by issuing 
 metallic checks to purchasers at the time purchases are 
 paid for. These checks are in denominations of five, 
 ten, twenty-five and fifty cents, and one, two, five and 
 twenty-five dollars. The dividend is based on the five 
 and twenty-five dollar check issued during the quarter. 
 
 The Progress of the Concern is best shown by the 
 following table : 
 
 Questions Nos. 4 and 6. 
 
 Capital. 
 
 Sales. 
 
 Profits less 
 
 Ititerest 
 & Expense. 
 
 Jnlv 27, 1876 to July 1, 1877, 
 
 i 800.00 
 
 84,191.31 
 105,258.68 
 
 % 41,598.86 
 69,177.32 
 99,848.85 
 158,421.54 
 189,177.84 
 243,100.88 
 266,040.15 
 266,299.52 
 252,995.78 
 210,654.81 
 196,331.55 
 232,501.94 
 246,016.01 
 228,485.69 
 268,057.72 
 
 $ 1,351.49 
 
 .Jlil'v 1, 1877 to July 1, 1878, 
 
 2,149.69 
 
 July 1, 1878 to July 1. 1879, 
 
 4,846.84 
 
 July 1, 1879 to July 1, 1880, 
 
 10,775.54 
 
 July 1, 1880 to July 1, 1881, 
 
 11,402.60 
 
 July 1, 1881 to July 1, 1882, 
 
 14,847.85 
 
 July 1, 1882 to July 1, 1883, 
 
 18.006.21 
 
 July 1, 1883 to July 1, 1884, 
 
 15,305.12 
 
 July 1, 1884to.Tuly 1, 1885,--- 
 
 July 1, 1885 to July 1, 1886 
 
 11,683.21 
 10,438.41 
 
 .July 1, 1886 to July 1, 1887, 
 
 9,313.56 
 
 July 1, 1887 to ,Inly 1, 1888, 
 
 12,702.59 
 
 July 1, 1888 to July 1, 18K!), 
 
 13.807.33 
 
 July 1, 1889 to July 1, 1890, 
 
 12,444.77 
 
 July 1, 1890 to July 1, 1891, 
 
 15,722.48 
 
 Total 
 
 2,968,808.46 
 
 176,601.36
 
 116 HOW TO COOPERATE. 
 
 It will be seen that progress has been steady, notwith- 
 standing the recent agricultural depression which ac- 
 counts for the partial falling off in business. The divi- 
 dends have ranged from six to ten per cent on the cash 
 sales, averaging six per cent for the whole fifteen years, 
 besides which a large surplus has been accumulated. 
 The sinking fund is $29,000. The association has a 
 stock of goods valued at 160,000, has six branches in 
 other towns in the county, and is about to start the sev- 
 enth. There are three branch stores in the county cov- 
 ering a stock of goods of about $7,000 each Edgerton, 
 Stanley and Gardner. The sales in fifteen years have 
 been three million dollars and now average nearly $1000 
 a day. 
 
 The Great Building and Trade. Whereas the 
 main store occupied only a small rented room at first, it 
 now owns the magnificent building elsewhere illustrated, 
 which was built and equipped at a cost of $50,000. It 
 is three stories high, 118x120 feet. The business re- 
 quires all the four stores on the first floor, one for 
 hardware and agricultural implements, another for gro- 
 ceries and meats, both fresh and salted, a third for gen- 
 tlemen's furnishing goods, both custom-made and in the 
 cloth, and the fourth the ladies' furnishing department. 
 In the second story some offices are rented. There is 
 also storage room for goods and the printing and pub- 
 lishing office of the Kansas Patron, the official organ of 
 the State grange, which is owned and published by 
 the association. To its editor, George Black, we are 
 indebted for much information, who states that the asso- 
 ciation owns all the real estate in which it does business. 
 Seventeen clerks are employed at the main store in 
 Olathe, and seven more at the branches, who are paid 
 from $30 per month to $700 per year. The general 
 manager is paid $200 a month and the cashier $1,000 
 per year, the directors getting two dollars a day when in
 
 OTHEB SUCCESSFUL STORES. 117 
 
 session. The store also purchases for cash all saleable 
 produce purchased by farmers, leaviug them free to buy 
 their supplies where they wish. The benefits of the 
 store are confined to Patrons of Husbandry strictly. It 
 should be noted that the increase in capital and surplus 
 and the real estate and buildings owned by the associa- 
 tion have been largely accumulated from its earnings. 
 The quarterly report is not as complete as those pub- 
 lished by many other societies. For the four quarters, 
 from July 1, 1890, to July 1, 1891, the reports may be 
 summarized as follows, each report being duly certified 
 to by the auditors and invoicers : 
 
 QUAKTEKLY STATEMENT FOB YEAR ENDED JULY 1, 1891. 
 
 No. of quarter 58th. 59th. 60th. 
 
 Capital stock 59,791.28 $ 64,820,20 $ 77,335,91 
 
 Surplus fund 26,242,10 27,922.77 27,922.77 
 
 Total capital $ 86,033.38 $ 92,742.97 $105,258.68 
 
 AVEUAGB DAILY SALES. I MONTHLY SALES. 
 
 July, 1890 $ 798.11 July, 1890 9 21,519.14 
 
 August 847.82 Auj^ust 22,043.34 
 
 Sepleniber 1042.53, September 27,105.99 
 
 October 903.06 October 24,382.65 
 
 November 882.02 November 22,050.62 
 
 December 906.19 December 24,467.15 
 
 January, 1891 642.55 January, 1891 17,349.00 
 
 February 686.18 February 16,468.49 
 
 March 693.40 March 18,028.56 
 
 April 886.49 April 23,048.84 
 
 May 912.09 May 23,714..')5 
 
 June 1,617.15 June 27,84!).:v) 
 
 Average $~901.46! Total $268,057.72 
 
 PROFITS 
 
 For the First Half Year July to January. 
 
 Profits on sales, .57th quarter " $ 8,194.79 
 
 I'rotUs on sales, 58th (juarter 10,531.06 
 
 Total $18,725.85 
 
 Interest on money invested $3,513.40 
 
 Clerk hire, insurance, etc., 57th quarter 3,6ii3.46 
 
 Clerk hire, insurance, etc., 58th quarter 4,786.28 
 
 Total expenses $12,003.14 
 
 Net profits $ 6,722.71 
 
 Carried to surplus 1,(>K0.67 
 
 Net dividends $ 5,042.0^1
 
 118 HOW TO COOPERATE. 
 
 For the Second Half Year January to July. 
 
 Profits on sales, 59tli quarter % 8,273.81 
 
 Profits on sales, 60th quarter 9,849.07 
 
 Total 18,122.88 
 
 Interest on money Invested $3,746.50 
 
 Clerk hire, etc., 59th quarter 4,297.86 
 
 Clerk hire, insurance, taxes, etc., 60th quarter 5,159.70 
 
 Total expenses $13,204.06 
 
 Net dividends $ 4,918.82 
 
 DIVIDENDS PAID TO PURCHASERS. 
 
 Noof quarter 57th. 58th. 59th. 60tli. 
 
 To shareliolders, per cent 8.2 9.0 11.0 9J 
 
 To non-members, per cent 4.1 4.5 5.5 4 
 
 How the Farmers Have Prospered. We regret 
 not having been able to visit this institution, but Edwin 
 Snyder, in a paper before the Kansas Board of Agricul- 
 ture, speaks of its effect upon the members as follows : 
 
 "In my travels among the farmers I have not met a 
 community where there was so much evidence of thrift, 
 intelligence and enterprise, as among the members of 
 the Johnson County Cooperative Association. The hab- 
 its of thrift, economy, foresight and calculation, which 
 the successful conduct of a cooperative store involves 
 and requires, cannot fail to be of signal advantage to its 
 members. If this association has $150,000, which it 
 jointly owns, doubtless the members have individually, 
 outside the company, more property than they would 
 have had in the absence of this enterprise. This single 
 concern has increased the wealth of the State $150,000, 
 and at the same time assigned this wealth to a worthy 
 and deserving class of people." 
 
 A recent visitor remarks : *'I confess that I was sur- 
 prised at the amount of business done by this institution. 
 Never, in any other town of 3,500 inhabitants, have I 
 witnessed so complete a system of trade. Everything 
 was in perfect order, and everybody, from clerk to man- 
 ager, was busily employed, and the constant click and 
 whirr of the cash carriers was convincing proof, even
 
 OTHER SUCCESSFUL STOBES.
 
 120 HOW TO C06pRATE. 
 
 though one was blind and could not see the throng of 
 customers, that an enormous amount of business was 
 being transacted. Most of the employes are farmers' 
 sons and daughters, who were taken from the farm and 
 given employment as the business of the association 
 increased or demanded extra help. That this coopera- 
 tive enterprise is a credit to the energy and intelligence 
 of the members of the grange in Johnson county, no 
 one who visits it can for a moment doubt. These 700 
 grangers are to-day worth $150,000 more than they 
 would have been had they never undertaken this coope- 
 rative work. Yet by it no one has been wronged in the 
 least, just as many people have been given employment, 
 and the profits of trade have been fairly divided among 
 those who made it." 
 
 The Manager's Advice Mr. H. C. Livermore, the 
 manager, is a clear-headed, thorough man of business. 
 Aside from the best business management, which it is 
 evident has prevailed, Mr. Livermore attributes success 
 first, to the willingness on the part of the shareholders 
 to work for the best interests of the association rather 
 than for their personal advancement ; second, the doing 
 of business for cash, doing a small business on this 
 basis rather than a large trade on credit ; third, the 
 accumulation of a large reserve fund to guard against 
 losses and keep the stock at its par value. He also ad- 
 vocates an inventory at least once in six months, but in 
 his own business makes quarterly accountings. 
 
 Mr. Livermore further suggests that sixty shareholders 
 are enough to start with. They should be men who will 
 work for the general good of the society, not political 
 tricksters with axes to grind, not dishonest men, not 
 men who do not get along peaceably with their neigh- 
 bors, or who have a disposition to rule or ruin. He 
 also warns against shareholders *'who think they know 
 it all and only know but little, who will not peaceably
 
 OTHEB BUOOESSPUL 8T0EES. 131 
 
 abide by the will of the majority, who will not trade 
 with the society and encourage others to trade with it." 
 
 THE TEXAS COOPEEATIVE ASSOCIATIOST, 
 
 This Conspicuously Successful Society confines 
 its membership and benefits wholly to Patrons of Hus- 
 bandry. It was chartered July 5, 1878, with an author- 
 ized capital of $100,000, of which only 1250 was paid in. 
 Its by-laws appear in the Appendix, from which it will 
 be noted that subordinate granges or individual mem- 
 bers of the order can hold shares. According to the 
 12th annual report, the concern had a capital stock of 
 $80,945 on June 30, 1890. Of this amount $39,325 was 
 held by 478 individuals, $39,140 by 129 local cooperative 
 associations, and $2,480 by 102 subordinate or local 
 granges, making 709 shareholders in all. The whole 
 business is thus owned and operated by the farmers. 
 Only about $12,000 of the present capital stock repre- 
 sents new cash actually paid in. The rest was earned in 
 the business and stock issued for it in place of dividends. 
 In addition to this accumulated capital from earnings, 
 the association has paid back to the farmers over $200,- 
 000 in dividends on purchases and interest on capital. 
 The T. C. A. has also sold goods much cheaper than 
 other merchants, so much so that at first it had the 
 whole commercial world to fight with their organized 
 system. The society occupies the handsome warehouse 
 at Galveston illustrated in Fig. 13, and has an agency 
 in New York city. The by-laws provide that in divid- 
 ing the profits shareholders shall be paid ten per cent 
 interest on paid-up stock ; a portion of the earnings 
 may be set aside to increase the capital, and the remain- 
 der is divided among shareholders and Patrons of Hus- 
 bandry not shareholders, the former receiving full and 
 the latter half dividends. The profits derived from the 
 business of Patrons not sliareholders, and by those who
 
 122 
 
 HOW TO OOOPEEATE. 
 
 are not members of the grange, are styled an accumu- 
 lative fund, which is divided yearly among the share- 
 holders in the shape of new stock. About one-twentieth 
 of the total business is of this kind. 
 
 Progress and Profits. President A. J. Kose states 
 that this accumulative profit has for twelve years aver- 
 aged six per cent on the capital. The trade profit or 
 dividend has ranged from one and one-fourth to four 
 and one-half per cent. It would have been much larger 
 had the association maintained the usual prices. Ten 
 per cent interest has also been paid on capital. *'In 
 addition to these immediate financial benefits, many a 
 seventy-cent boy has received in the central or local 
 stores a good practical business education that enables 
 him to get 11,000 to $1,500 salary, and tliousands of 
 Patrons have learned business methods and business 
 habits that they would not part with." The share capi- 
 tal is withdrawn only after it has been invested at least 
 five years, according to a vote taken in 1886. Since 
 that date the capital has nearly doubled, showing that 
 the non-withdrawal feature is a popular one. The net 
 increase in capital, the fund available for dividends 
 on purchases, and the number of shareholders thus 
 compare : 
 
 Tear. 
 
 Paid Capital. 
 
 Dividend Fund. 
 
 Shareholders. 
 
 1879 
 
 9 250 
 
 
 
 1880 
 
 1,180 
 
 9 1,385 
 
 
 1881 
 
 3,348 
 
 8,632 
 
 
 1882 
 
 14,000 
 
 12,655 
 
 
 1883 
 
 20,000 
 
 20,542 
 
 
 1884 
 
 27,500 
 
 17,349 
 
 
 1885 
 
 32,670 
 
 11,644 
 
 473 
 
 1886 
 
 39,730 
 
 19,694 
 
 497 
 
 1887 
 
 51,715 
 
 19,861 
 
 620 
 
 1890 
 
 80,945 
 
 14,798 
 
 709 
 
 How the Business is Done. Besides the savings 
 on goods sold, the T. C. A. has been a great boon to 
 Texas farmers in that it has handled their cotton for a 
 commission of twenty-five cents per bale, instead of the
 
 OTHER SUt!CESSFUL STORES. 
 
 123 
 
 one dollar and a quarter which was the brokers' regular 
 charge. Out of this reduced commission the association 
 returns ten to fifteen cents per bale as a dividend or 
 rebate on cotton handled for its members. The annual 
 statement shows that credit enters largely into the busi- 
 ness, though an iron-clad rule adopted at the twelfth 
 annual meeting compels all sales to be settled for within 
 thirty or ninety days according to custom. The follow- 
 ing comparison of the annual statements for the years 
 ended Jan. 30, 1887, and 1890, are of interest and value. 
 It reveals a growing tendency to credit that must be 
 corrected, or it will cause trouble. Strenuous efforts 
 are being made to correct this weakness. 
 
 COMPARATIVE STATEMENT TEXAS COOPEEATIVE ASSO- 
 CIATION". 
 
 Assets. 
 
 1890. 
 
 1887. 
 
 LiaMUties. 
 1890.~ 
 
 Cash $ 5,074.67 $ 2,868.40 Capital stock .... f 81 ,005.00 
 
 BUI receivable... 63,495.03 29,847.38 Bills payable. .. . 64,641.07 
 Aocotiiits due ... 50,224.64| 35,292.65 Acc'ts payable. . . 31,679.28 
 
 Mercliandise 85,692.36 51,242.38: Div'nd undrawn 2,447.48 
 
 Real estate 2,178^15] |i Reserve funds... 4,374.88 
 
 Total $206,664.45 119,250.81 ! ^^^ Ins. debt. . . . 7,719.46 
 
 * Net profits 14,797.68 
 
 Total 206,664.45 119,280.81 
 
 1870. 
 
 $51,715.00 
 
 5,000.00 
 
 39,742.20 
 
 2,572.06 
 
 1,907.49 
 20,221.55 
 
 Receipts. | 
 
 Expenditures. 
 
 1890. 
 
 1887. 
 
 $29,559.34 
 
 4,8,')8.10 
 
 729.49| 
 
 1,561.43 
 
 1,154.63 
 
 1890. 
 
 1387. 
 
 Profits on Mer. ..$30,773.38 
 Com. on cotton . . 2,102.10 
 
 Gen'r'l expenses $14,828.37 
 I>ecturing exp. . . 1,427.50 
 Profit and loss . . 1.821.93 
 Bal. net profit. . . 14,797.68 
 
 $17,641.44 
 
 
 20,221.55 
 
 
 
 Total 32,876.48' 37,862.99 
 
 Total 32,875.48 
 
 37,862.99 
 
 
 General Remarks. Each of the one hundred and 
 twenty-nine local cooperative stores or societies con- 
 nected with the state association does its own local busi- 
 ness and reaps its own profits. Many of these, however, 
 have not been very successful, and the number has, dwin- 
 dled of late years, owing to the credit system. While 
 the T. C. A.'s sales amount to over $300,000 a year, the
 
 124 
 
 HOW TO COdPERATB. 
 
 total sales of the local " Coops " are probably five times as 
 much. Each local society is represented at the annual 
 meeting of the T. 0. A., at which the officers and seven 
 out of thirteen directors are chosen. The directors elect 
 the business manager, who receives a salary of 1250 a 
 month, and gives a bond of $50,000. The secretary and 
 
 Fig. 13. Stokes and Warehouse of the Texas Association. 
 
 treasurer are also under bonds. J. S. Rogers, the man- 
 ager, has always been manager, and has always counseled 
 sound cooperative principles in contradistinction to some 
 of the grander but, as events proved, more chimerical 
 schemes of the Texas Farmers' Alliance. The T. C. A. 
 also operates a mutual fire insurance company, the bene- 
 fits of which are confined to Patrons. Started Sept. 15, 
 1885, with no capital, the insurance department had a
 
 OTHER SUCCESSFUL STORES. 125 
 
 cash balance of nearly $8,000 on hand June 30, 1890, 
 after paying losses and expenses to the amount of $3,855. 
 Just How to Start a Cooperative Store. One or 
 two progressive men and women should first read up on 
 the subject until they master it fully. Then get others 
 to read this book. Discuss the subject at several meet- 
 ings, at which special efforts should .be made to secure 
 the attendance of the women as well as the men. If the 
 women are interested and satisfied with the cooperative 
 store, its success will be insured. Make no unnecessary 
 noise about it, but when a reasonable number say from 
 a dozen to a hundred of clear-headed people are thor- 
 oughly interested, go ahead, and circulate a subscription 
 paper drawn up something like this : 
 
 We, the undersigned, hereby subscribe for the number of shares of 
 
 the Cooperative Association set against our respective names, the 
 
 shares to be Five Dollars each, payment to be made as follows: [Here 
 specify how many shares shall be paid up in full and the terms of pay- 
 ment for the remainder as, for instance, one dollar per month or 
 whatever plan will best suit the members and insure enough capital to 
 
 make a safe beginning.] Our subscriptions are to be void unless 
 
 shares, to the amount of at least paid up capital are subscribed 
 
 for. Said association to be legally incorporated under the State law 
 and to be governed by by-laws in harmony with those adopted by other 
 successful cooperative entei-prises on the Rochdale system. 
 
 An energetic committee should be appointed to circu- 
 late this pledge men in whom the local public have 
 confidence. The necessary subscriptions secured, the 
 subscribers or shareholders should meet and perfect a 
 cooperative corporation under the State law. The 
 assistance of a lawyer is usually necessary to start right 
 and comply with the law. The canvassing committee 
 for pledges should be limited in its work to a certain 
 number of days ; also the committee on by-laws should 
 be limited to a few days. This is necessary to push the 
 thing right along and inspire confidence. Let the sub- 
 ject be agitated and discussed until the people are thor- 
 oughly interested, but when the start is made, push
 
 126 HOW TO COOPERATE. 
 
 things. Take advantage of all the experience of the suc- 
 cessful and unsuccessful cooperative efforts outlined in 
 this book. Select the very best men for officers and 
 back them up. Above all, remember that an humble 
 beginning on a safe basis is better and surer to grow into 
 a magnificent success than a more "brilliant" start on 
 a larger scale but looser system. 
 
 A Useful Hint. We may add here that one great 
 secret of the success of the Arlington association is the 
 effort made to keep its members constantly interested. 
 Thus for days before the last Fourth of July the entire 
 working force and many of the members put in their 
 spare time in arranging for a grand Fourth of July 
 parade. The ''Coop" appeared in the parade with its 
 fourteen teams all gayly painted and decorated with flags 
 and bunting, and loaded with goods from the different 
 stores, each team decorated with proper signs and mottos 
 and driven by two proud employes. Its appearance in 
 the parade created magnificent enthusiasm, and was a 
 tremendous advertisement. Even more important was 
 the value of such an object lesson in inspiring further 
 confidence on the part of the members of the association 
 and the thousands upon thousands of working people 
 who witnessed the procession. It may be added here 
 that the association's quarter, ended July 1, 1891, was 
 another very successful one, the dividends on purchases 
 being eight per cent.
 
 CHAPTER V. 
 
 COOPERATIVE PRODUCTION. 
 
 Not a Simple Thing. This is a far more compli- 
 cated matter than cooperative distribution. The theory 
 is that in time tlie savings of the latter system should 
 be sufficient to establish enough cooperative manufacto- 
 ries, etc., to produce the goods required for distribution. 
 In practice it may be many years before we in America 
 reach this stage. For this reason, and because our peo- 
 ple will do well to first master cooperative distribution, 
 detailed information is here given only upon several 
 phases of cooperative production that have already 
 proven successful. Even among English cooperators, 
 productive effort is largely confined to the Wholesale 
 society. 
 
 The Rochdale idea of feeding the business on its 
 profits must be observed even more faithfully in coopera- 
 tive production than in distribution. The entire profits 
 should not be declared in dividends on the material or 
 labor used in the manufactures. A liberal allowance 
 for depreciation must be made, and a reserve fund cre- 
 ated for the contingencies that are so liable to affect any 
 manufacturing enterprise. 
 
 Cooperative Farming. Cooperative cheese facto- 
 ries and creameries for the manufacture of butter arc an 
 established success. A special chapter is devoted to 
 them. It is evident also that if farmers are to get the 
 utmost out of the business of producing sugar from 
 beets or sorghum they should own and manage the 
 factories cooperatively. Then, after paying a reasonable 
 
 127
 
 128 HOW TO COOPERATE. 
 
 hire to capital, the balance of the profits can be declared 
 in dividends on beets or cane furnished. Germany has 
 113 cooperative beet sugar factories, with an average 
 capital of $200,000 ; they each work up about 25,000 
 tons of beets annually, the expenses being a trifle under 
 $3 per ton (including interest on capital), leaving an 
 average profit of $1.25 per ton above the usual price 
 paid for beets. This manufacturers' profit of $1.25 per 
 ton is by the cooperative plan paid in dividends on beets, 
 instead of going into the pockets of a factory proprietor. 
 In view of the prospective development of the sugar 
 industry in America, the application to it of cooperation 
 should be kept in view. The amount of capital required 
 need be no hindrance to cooperative effort when the 
 established character of the industry is proven. 
 
 It would be a comparatively easy matter for new set- 
 tlers in the West and South to unite so as to get the full 
 benefits of cooperation. Let them homestead a town- 
 ship, and own in common an artesian well to supply 
 water for irrigation and other purposes, thoroughbred 
 bulls and stallions to improve their stock, a steam plow, 
 threshing machine, an exchange or store for supplying 
 groceries and selling produce, an elevator for storing 
 grain, a factory for butter- and cheese-making with re- 
 frigerator house attached, a general repaii- shop, a laun- 
 dry, a savings bank and building association, and other 
 things required for their work and business. The plan 
 is perfectly practical, but the trouble is that in carrying 
 it out some crank or enthusiast would try to include 
 household life in common. Without this feature, how- 
 ever, the social life of such a settlement would be bright 
 and attractive, and would do much to rob farming of 
 the lonesomeness that is distasteful to many. After 
 complying with the homestead laws, the people could 
 live in clusters of houses or little vilhiges, that would 
 make the social side of life on the farm still more allur-
 
 COOPERATIVE PRODUCTION. 
 
 1-^9 
 
 K I
 
 130 HOW TO COOPERATE. 
 
 ing. A few such cooperative townships could unite to 
 build and operate flour mills or beef and pork packing 
 houses, and other enterprises that require more capital 
 and product than might be furnished by one small 
 township. 
 
 Some Nebraska farmers are now forming such a set- 
 tlement, and estimate that through this system they 
 can get twenty-five instead of fifteen cents for butter, 
 fifteen instead of ten cents for eggs, seventy instead of 
 fifty cents for wheat, five instead of three and one-half 
 cents per pound for live hogs, with similar savings in 
 beef and other produce. They estimate that in each 
 county twenty-four miles square of average productive- 
 ness in Nebraska, the farmers can save over $500,000 
 per year. Tliis may be a wild calculation, but with 
 proper management, no reader is too blind to see the 
 great savings that could be effected. Because the profits 
 of such distribution and manufacture go to middlemen 
 is why farmers, especially the growers of staple crops in 
 the West, are not better off. 
 
 In most farming industries, however, little progress 
 has been made cooperatively. But it is becoming more 
 and more common for farmers who wish to improve 
 their stock to unite in a corporation for the purpose of 
 buying pure blooded sires and accounting for their use 
 in a business-like way a thorouglily commendable prac- 
 tice, whereby even the poorest farmer may improve his 
 stock. In other farming industries, little progress has 
 been made in cooperative production. The farmer is 
 beginning to realize, however, that in many other direc- 
 tions he can unite with his neighbors to advantage. 
 The old question of dogs versus sheep would be effectu- 
 ally answered if our Eastern farmers would unite their 
 flocks and hire a shepherd to tend them. No better use 
 can be found for hill pastures and so-called deserted 
 farms, and with large enough flocks the shepherd's ser-
 
 COOPEBATJVE PRODUCTION. 131 
 
 vices will pay even better than on the ranches of the 
 West. The saving in repairs in fences would alone 
 be enormous. 
 
 Only by a similar plan of pasturing cattle in large 
 numbers can the Eastern farmer produce as cheaply as 
 the Western feeder. The agricultural depression and 
 the railroads have quite leveled the value of grazing 
 lands in both sections, and profitable production in any 
 part of the country will depend more and more upon 
 the extent to which farmers cooperate to produce in 
 large quantities at the minimum of expense. 
 
 This is true of staple crops as well as of meat products 
 and wool, Nor do the relative merits of intensive ver- 
 sus extensive farming prevent cooperation. If the 
 grower of one or two acres of vegetables gets great yields 
 and good profits, might he not do still better if the ex- 
 pense of cartage, of fertilizers, of irrigation, of every- 
 thing except day labor, were reduced by union with ad- 
 joining market gardeners ? So, too, in working the land 
 provided the society has the required capital, brains and 
 experience. But elevators, flouring and lumber mills, 
 and similar factories for working up raw farm products, 
 are usually best conducted as cooperative corporations 
 independent of the store. This simplifies the work, and 
 with the average body of cooperators insures better man- 
 agement. Such efforts should be organized and operated 
 with the same regard for business principles and the 
 requirements for success noted elsewhere for stores, 
 creameries or insurance companies. The object is to 
 convert the raw crop into the finished product for mar- 
 ket at the least expense, selling the same to the best 
 advantage and returning the proceeds to the farmers in 
 accordance with the quantity and quality of the raw 
 material furnished by each. 
 
 Working Men Cooperative Producers meaning 
 the management of ordinary manufacturing enterprises
 
 132 
 
 HOW TO COOPERATE. 
 
 by the men who perform the labor. Here the object is 
 to declare profits in dividend on labor done, after paying 
 capital its hire and setting aside a reserve. The plan 
 has proven successful in a few instances in the United 
 States, and in numerous enterprises in England and 
 France, but failure has been far more frequent abroad 
 in productive effort than with cooperative stores. The 
 
 Fig. 15. Interior View of Fig. 14. Cooperative Marketing. 
 
 reason is plain it is not the principle, but the manage- 
 ment that is at fault. The most conspicuous successes 
 have been where the members cheerfully recognized the 
 principle of paying each worker according to his ability
 
 COOPEEATIVE PKODUCTION". 133 
 
 to contribute to the prosperity of the concern. In such 
 cases, the workers have willingly selected their most 
 capable men as officers, and paid liberally for brains and 
 experience as well as for manual labor. This insured 
 tlie best manager the employes had among their number, 
 and stimulated each worker to improve his efficiency so 
 as to get an increase in wages. The profits being divided 
 in dividends on wages, the larger the latter the more 
 profit accrues to the capable and well paid. 
 
 There has been much discussion as to division of 
 profits what proportion should go to labor, capital and 
 consumer, but cooperators who know enough to so man- 
 age a factory as to earn a profit will know how to divide 
 the profits on a fair basis to labor rather than to capital. 
 
 Furniture Workers' Cooperators. An instance 
 of a practical and long continued success among artisans 
 is furnished by the St. Louis Furniture Workers' Asso- 
 ciation, organized under the laws of Missouri, Nov. 15, 
 1878. It now has a cash capital of $50,000, all paid up. 
 The start was made in a very humble way, the mem- 
 bers having comparatively little money. During the 
 first few years fifteen per cent of the wages of each 
 man was charged up to his labor account and placed to 
 his credit in taking up shares of the capital stock. In 
 this way each member was encouraged to increase his 
 holdings and save money for working capital. A divi- 
 dend of five per cent was declared in 1884, but the com- 
 paii^does not make a practice of paying cash dividends, 
 but pays as good wages as possible. There are now 
 eighty-five members, all of whom work in the factory 
 and most of whom own the homes they occupy. A few 
 years ago the association bought the premises it now 
 occupies, which it previously rented. Its sales last year 
 were over 1100,000, and its goods are shipped throughout 
 the Southwest. Each stockholder earns his wages the 
 same as at a private factory. The wages are credited
 
 134 HOW TO COOPERATE. 
 
 each week to the separate accounts, pay day coming 
 twice a month. The full amount of the wages earned 
 by each stockholder is paid if the cash in the treasury 
 warrants. Otherwise such percentage of the amount 
 due is paid to each man as the cash will permit. 
 
 This report indicates that these furniture workers are 
 not only willing to be paid on their merits, but if cash is 
 short cheerfully accept such proportion of their wages as 
 can be paid. It should be added that any deficiencies of 
 payment on one pay day is made up at a later date, 
 unless some unforseen loss occurs. Thus the workers 
 share in the losses or profits. 
 
 By-Laws for Cooperative Factories must vary 
 according to the requirements and nature of the business. 
 The rules of the St. Louis Furniture Workers' Associa- 
 tion, while crude in some respects, contain so many 
 points instructive to workingmen cooperators that we 
 here insert them : 
 
 Abticle I. Meetings of the Stockholders. 
 
 Section 1. The stockholders shaU hold two meetings a year on the 
 third Tuesday in January and July. 
 
 Sec. 2. At the January meeting the directors shall give the stock- 
 holders a complete report of the condition of the association, an inven- 
 tory of the property, the state of the finances, and all that has refer- 
 ence to the management. 
 
 Sec. 3. At the July meeting, the main feature shall be a discussion 
 of the business of the association, without a report from the directors 
 unless they wish. 
 
 Article II. Meetings. 
 
 Section 1. In ail the meetings of the stockholders fifty shall be a 
 quorum. When this number is present the president shall call the 
 meeting to order. In the absence of the president the secretary sliall 
 call the meeting to order; they shall then vote for a chairman. 
 
 Sec. 2. The directors can call special meetings of the stockholders 
 when a majority thinks necessary. On a written request from one- 
 quarter of all the stockholilers, the president shall call a meeting. 
 Ten days' notice of all meetings of the stockholders shall be given, and 
 this shall be published in tlie largest circulated Oerman and English 
 daily papers in St. Louis ten days beforehand. Also the same notice 
 shall be sent to every stockholder through the mail. 
 
 Sec. 3. In all meetings the majority rules, except in removing offi- 
 cers and changing by-laws and rules, when a two-thirds majority is 
 necessary.
 
 COOPERATIVE PEODUCTION. 135 
 
 Sec. 4. In all meetings of the stockholders, each stockholder has one 
 vote, except in the election of directors, when each share represents 
 one vote. 
 
 Article III. The Election of Directors. 
 
 Section 1. The annual election of directors shall be held on the first 
 Wednesday after the third Tuesday in January. 
 
 Sec. 2. All stockholders under eighteen can vote only through a 
 guardian. 
 
 Sec. 3. The directors choose their own officers. If the place of a 
 director becomes vacant, then shall the next highest candidate in the 
 last election take his place. 
 
 Sec. 4. All directors serve a term of one year. 
 
 Sec. 5. Paragraph 4 of our charter shall hereafter read, " The number 
 of directors shall be thirteen." The president, secretary and treasurer 
 shall constitute the executive board and transact the main business 
 under the oversight of the rest of the directors. 
 
 Article IV. Duties of the Officers. 
 
 Sec. 1. The Directors shall hold a meeting once a month and the sec- 
 retary shall notify every director of the same. 
 
 Sec. 2. Should the office of superintendent become vacant, then the 
 directors have power to appoint or discharge his successor by a two. 
 thirds vote. 
 
 Sec. 3. Eight days before inventory the stockholders who work In 
 the factory shall appoint nine men to take the inventory. Of these 
 four shall be stockholders outside the factory and five employes in 
 the factory. 
 
 Sec. 4. Tlie directors shall keep back ten per cent of the wages ol 
 the stockholders working in the factory who do not own twenty shares, 
 This fund is to be used in purchasing shares of stockholders not in the 
 factory. The purcliase goes by rotation in the order of the first-bought 
 share. 
 
 Sec. 5. Tlie directors shall pay the workmen on the 2d and 16th day 
 of each montli. No money is to be paid out for wages at any otlier time. 
 
 Sec. 6. The President shall perform all the duties laid upon liim by 
 the rules of the association. He shall have general oversight of the 
 business of the association with the assistance of the secretary and 
 treasurer, subject to the control of the other directors. The president 
 has to sign all note and drafts. He has also the right to call special 
 meetings of directors and stockliolders when he thinks best. He sliall 
 not pay out more than $6,000 In one month, nor sign notes or do other 
 financial transactions unless with the sanction of the directors. 
 
 Sec. 7. Tlie Secretary shall keep correct minutes of each meeting of 
 tlie directors in a book for that purpose, each record to be signed by 
 the president and himself. He shall also send all notices for meetings 
 of the directors and stockholders to each member. He has the care of 
 all the books and papers of the association. The books shall at any 
 time be open for the inspection of a committee of members or directors. 
 
 Sec. 8. The Treasurer nhfiW give a bond for a sum to be set by the 
 stockholders, but not less than 85,000. He has cliarge of all tlie nioiieys 
 received by the association and has to pay all bills less than $500, which
 
 136 HOW TO COOPERAlfi. 
 
 must be approved by the president and secretary. He must keep a 
 correct account of all the transactions in a book, and his books must 
 be open at any time for the inspection of the directors. 
 
 Sec. 9. The president and treasurer shall receive five dollars a year 
 and the secretary fifty dollars for their official services. 
 
 Sec. 10. All directors who work by the piece shall be paid twenty- 
 five cents per hour for loss of time occasioned by attending meetings 
 and other business pertaining to the association. 
 
 Sec. 11. These by-laws can be amended or changed at any of the 
 meetings according to Art. 2, Sec. 4. 
 
 Factory Rules. 
 
 1. The superintendent of the factory has charge of the inside and 
 outside business of the association. He also has to give the cost to 
 
 'Sff'UrJtm-MfjarairM'Mrm. vjarjm-trjmrjmrM^jrj^Jrjir*r/>*j^4^jmmmu^^it'itaKrjm3mimJlirMrjmj 
 
 StaU of ilowa, ^o. ^ | 
 
 ^Lgnns Cn-Dperative Assnciatinn.^ 
 
 SbU U to 0rrtif3, 3Ko;t.._ __ . vwwxui 
 
 to ^(, >vwa v tu ^djyUoX \)w3 v tu Lyons Co^)pentiTt Anociation, 
 
 I O - iM\ ^ _ v6 
 
 Fig. 16. FuBH FOB Shareholders' Certificate of capital Stock 
 IN A Cooperative Association. 
 
 produce each piece of work at the factory and report the same to the 
 directors. 
 
 2. He shall also see that every workman does his duty and that the 
 workmen have their material for working at the right time at their 
 bench. 
 
 3. Each employe has all the rules and orders from the superintend- 
 ent, must obey him and finish all work according to direction. No 
 workman is permitted to take away any of the company's material 
 without permission of the directors. Every workman shall clean up 
 and take to a place for that purpose all pieces, shavings, etc., every 
 evening after work. Each machinist has to clean up every Saturday 
 evening his machine before he leaves it.
 
 COOPERATIVE PRODUCTIOIT. 137 
 
 4. The time to commence and to stop work mornings, noons and 
 evenings will be given by the bell, each workman strictly to obey it. 
 The ten minutes after 9.30 a. m. and five minutes after 3.30 p. m. will 
 be used for luncheon. During this time the machines will be stopped. 
 Outside of this time each workman must strictly attend to his work. 
 No one is allowed to use alcoholic drinks or to smoke on the premises. 
 
 5. The ten minutes' morning and five miimtes' afternoon lunch time 
 must be made up. 
 
 6. If a workman has any complaint against another workman or 
 against a foreman, he must go to the superintendent. If he has com- 
 plaint against the superintendent, he must subna*t it in writing to the 
 directors. 
 
 7. To insure a thorough and constitutional election, each shareholder 
 working in the factory shall on the day before the election appoint 
 election judges. 
 
 8. Tlie superintendent has no right to discharge any shareholder 
 who works in the factory on his own responsibility, but when he finds 
 it to be necessary, he must bring it before the directors for them to 
 decide. 
 
 9. No person is allowed to enter the factory unless he has a permit 
 from the office. 
 
 10. With the exception of very necessary work, no one shall be 
 allowed to work Simdays. 
 
 Productive Failures. It would be easy to prepare a 
 long list of so-called failures of cooperative effort. Some 
 of them are described in the History of Cooperation in 
 the United States. Others are familiar to the general 
 reader. But it is almost an invariable rule that these 
 failures were due to the methods employed and not to 
 any weakness of the principle of cooperation. Thus the 
 coal operatives at Summit, Mo., who had become chronic 
 strikers, organized a cooperative company in the latter 
 part of July, 1885, associating with them Thomas War- 
 dell, their previous employer. At the end of the year 
 " the members saw by their own settlement that they 
 were not as well off as by the old order of things, with- 
 out the trouble of looking after the business, so they 
 threw it up." These same men, two years after, went 
 on another strike, and Mr. Wardell was killed during 
 the contest. It is quite true that "such unreliable men 
 are not likely to make business a success under any con- 
 ditions." The Cooperative Coal Company at Bloom- 
 ington, 111., made a manful struggle, but finally had to
 
 188 HOW TO COOPERATE. 
 
 succumb through outside competition. The Coopera- 
 tive Sash and Blind Factory at Rushville, Ind., for 
 which great hopes were made, assigned through mis- 
 management. 
 
 Profit Sharing is the most successful form of coop- 
 eration in manufacturing and productive enterprises. 
 In this system tjie owners of the plant or the employers 
 set aside a certain proportion of the net earnings to be 
 paid as a bonus or dividend on each employe's wages. 
 This leads the worker to be more careful, for the less he 
 wastes and the more he does to increase the concern's 
 profits the greater will be the dividend on his wages. 
 Dr. Oilman's book on this topic is particularly rec- 
 ommended. 
 
 Other Productive Enterprises are mentioned in 
 the Appendix. Another phase of very successful coop- 
 erative production is given in the following chapter on 
 associated dairying. From Prof. Bemis's estimates in 
 188G, it is probable that cooperative production in New 
 England amounts to over $1,000,000 a year. The most 
 brilliant success in cooperative production in the United 
 States is afforded by the cooperative coopers of Minne- 
 apolis, who control a large portion of the cooperage busi- 
 ness of the Northwest. There are several cooperative 
 cooper shops, whose credit is high, business profitable, 
 and members prosperous. These cooperators are very 
 confident that in a large range of productive industries 
 wage-workers could cooperate with equal success. The 
 Cooperative Barrel Manufacturing Company was the 
 first enterprise of the kind, established in 1874, and has 
 been the model for several similar attempts, all of which 
 have been successful. The by-laws have been altered 
 but little since they were drawn eighteen years ago. 
 They are herewith printed entire, and give a very clear 
 insight into the methods of these successful cooperators :
 
 COOPKKATIVE PRODUCTION. 
 
 139 
 
 A-BTicLE I. Officers. 
 
 Section 1. The officers of this association shall be President, Secre- 
 tary, Treasurer, three Directors, and Foreman. 
 
 Sec. 2. President. It shall be the duty of the president to preside at 
 all meetings of the members, and of the board of managers, to preserve 
 order at such meetings, to decide all questions of order subject to an 
 appeal to the house, to put all questions to vote, and give the casting 
 vote in case of a tie. In the absence of the president at any such 
 meeting the senior member present of the directors shall act in his 
 
 Fig. 15. 
 
 Eneas Cash, Secretary ok the Lyons Cooperative As- 
 sociation. (See Page 89.) 
 
 stead. It shall also be the duty of the presiflent to sign all contracts 
 entered Into by this association, and all certificates of stock issued by 
 It, to order the payment of all bids and claims against the company 
 before the same shall be paid by the treasurer, and shall keep a letter- 
 press copy of all communications emanating from this association, in 
 a iKjok provided for the pur]>ose. 
 
 Sec. 3. Secretary. It sliall be the duty of the secretary to attend all 
 meetings of the association, and make ac(!urate minutes of all pro- 
 ceedings thereof, and record the same in a book provided for the
 
 140 flow TO COOPERATE. 
 
 purpose, and perform such other duties as usually appertain to this 
 oCBce. He shall keep an accurate account of all receipts and disburse- 
 ments of the company, and a record of the amount of work done by 
 each member, and tlie amount of money received for said work, and 
 shall receive from the foreman aud record a weekly statement of the 
 amount and price of all work sold during each week. He shall make 
 up the monthly, semi-annual and annual reports of the receipts and 
 disbursements of the corporation. He shall keep a file of all bills, 
 contracts and other papers belonging to the company. He shall coun- 
 tersign all contracts made, and all certificates of stock issued by the 
 company. His books shall be kept open at all times for the inspec- 
 tion of any member of the association, and shall, together with all 
 receipts, papere, etc., of the association, be delivered by him to his 
 successor at the expiration of his term of office. 
 
 Sec. 4. Treasurer. It shall be the duty of the treasurer to collect all 
 moneys due the association, and to deposit the same, in the name of 
 the association, in such bank or banks as it may from time to time 
 direct. He shall pay out no moneys of the association without an 
 order by the president. 
 
 Sec. 5. Board of Managers. The board of managers shall consist of 
 the president, treasurer, and three directors, who shall conduct and 
 manage the business of the association. The board of managers shall 
 elect a secretary from their number, who shall keep a record of the 
 proceedings of the board in a book provided for the purpose, which 
 he shall read when called for by the association, and which shall be 
 open at all times for inspection of members. They shall, on the first 
 day of May and November of each year, make out a statement of the 
 standing of the association. 
 
 Sec. C. Foreman. It shall be the duty of the foreman to act as fore- 
 man of the shops of the association ; to inspect all articles manufac- 
 tured, and qnce a week to render the secretary an |accurate statement 
 of the number of articles manufactured during the week, and also of 
 the number and price of all articles bought and sold. 
 
 Sec. 7. Installation. All officers shall enter upon their respective 
 duties the first Monday after their election. 
 
 See. 8. Vacancies. Any office of this association may be declared 
 vacant at any regular monthly meeting, or at any meeting specially 
 called for the purpose, by a two-thirds vote of all its members, and 
 the vacancy thus made may be filled at the same meeting by a major- 
 ity vote of the members present. The officer thus elected shall hold 
 office during the remainder of the unexpired term of his predecessor. 
 
 Akticle II. Membership. 
 
 Section 1. Dxities of McTnbers. Any member of this association who 
 leaves his berth when the shops are running on full time, to take work 
 elsewhere, shall forfeit the right to the berth which he has vacated, 
 but should a member leave during a dull season, when the shops are 
 running on a stent, his berth shall be reserved for him until the fore- 
 man of the shops shall notify him to return. 
 
 Sec. 2. Intoxicating Liquors. No person shall be allowed to bring 
 intoxicating liquors into any shop of this association, or to be drank 
 upon its premi.ses.
 
 COOPEBAtlVE tBODUCTiON". 141 
 
 Sec. 3. Withdrawals. Any member, with the consent of the board 
 of managers, may withdraw from this association by giving the secre- 
 tary notice in writing of liis desire to do so, wlien liis membership 
 shall cease and be determined; provided, he sliall immediately sur- 
 render his certificate of stock to the president, and receive therefor a 
 note with interest at the rate of five per cent per annum for all mon- 
 eys due him by the association, payable six months from date. 
 
 Abticle III. Expulsion. 
 
 Section 1. Forfeiture of Membership. It shall be the duty of the 
 foreman to reject all articles made by members of the association 
 when not made satisfactory, or according to instructions, and if any 
 member shall refuse or neglect to perform his work in a workmanlike 
 and satisfactory manner, the foreman shall report to the president, 
 who shall call the board of managers to examine said member's work, 
 and if they deem it necessary, shall authorize the president to call a 
 meeting of the company, who shall have the power to discharge said 
 member from the employ of the company by a two-thirds vote of all 
 members of the company. 
 
 Article rv. Capital and Shares. 
 
 Section 1. Stock. Each and every member of this association shall 
 be a stockholder, and each member shall hold the same number of 
 shares. 
 
 Sec. 2. Transfers. No member of this association shall dispose of or 
 transfer his membership without the consent of the board of mana- 
 gers, and all transfers must be made ujwn the books of the company. 
 
 Sec. .3. Interest. Every subscriber shall pay fifteen per cent down 
 on each share of capital stock for which he subscribes, and interest on 
 the balance at the rate of five per cent per annum until fully paid, ac- 
 cording to the last semi-annual and annual settlement, which interest 
 shall be paid on the first pay days of April and October of each year. 
 
 Sec. 4. Issninff. Stock may be issued by the board of managers 
 when the members shall at any general meeting by a two-thirds vote 
 so direct. 
 
 Sec. 5. Applications. No person shall be eligible to membership In 
 this association who is not known to be a journeyman cooper, and of 
 good moral character. Tlie board of managers shall act on all appli- 
 cations for membership when so directed by the association, and shall 
 have the power to accept or reject any application for membership in 
 the association. 
 
 Article V. Dividends and Assessments. 
 
 Section 1. Settlement. The association shall pay five per cent inter- 
 est per annum on the first days in April and October of each year on 
 all moneys actually paid in on each share of capital stock at the time 
 of the preceding semi-annual or annual settlement, as the case may be. 
 
 See. 2. Appraispmetits. The real estate shall bo ai>])raiso(l in each 
 semi-annual and annual statement, and any loss or gain shall be 
 divided pro rata per share. 
 
 Sec. 3. Losses. All losses by fire, or failure of any cori)oratlon or 
 business firm, shall be paid pro rata i)er share.
 
 142 HOW TO COOPERATE. 
 
 Sec. 4. Assessments. There shall be a regular weekly assessment of 
 not less than three dollars nor more than live dollars upon each mem- 
 ber when the shops are running on full time. When not running on 
 full time, the amount and number of assessments shall be fixed by the 
 board of managers, and such assessments shall be regularly made, 
 and applied upon the unpaid stock of such member until the full 
 amount subscribed has been paid. Any member failing to pay his 
 assessment shall be fined fifteen per cent for each and every offense, 
 unless a reasonable excuse be given to the board of managers. 
 
 Sec. 5. Payment of Assessments. All asses.snients and fines levied by 
 this association shall be paid on the first pay day thereafter, and shall 
 be deducted from the weekly pay of the members. All losses, so far 
 as may be, shall be paid out of the regular weekly assessment, and the 
 balance applied in payment of subscriptions of stock. 
 
 Sec. 6. Dividends. The board of managers shall, at the semi-annual 
 and annual meeting held on the second Wednesday of May and No- 
 vember of each year, declare all dividends or losses, and the amount 
 thereof. When a dividend is declared it shall be paid in cash within 
 thirty days thereafter, to such members as have fully paid up all their 
 subscriptions. Those who have not fully paid up shall have the 
 amount of the dividend applied upon the unpaid balance of their cap- 
 ital stock. 
 
 Sec. 7. Gains and Losses. All gains or losses on the work of hired 
 help, or on the manufacture and sale of stock, shall be apportioned 
 pro rata per member. 
 
 Sec. 8. Other Points. All gains or losses not otherwise provided for 
 shall be apportioned pro rata upon the wages received by each 
 member. 
 
 Article VI. Death. 
 
 Section 1. In case of the death of a member, this company shall pay 
 to his lawful heirs, upon surrender of the certificate of stock, all 
 moneys known by the officers to be due them. 
 
 Article VII. Auditing Committee. 
 
 Section 1. The association shall ajipoint a committee consisting of 
 three members, at the regular meetings in April and October of each 
 year, to audit the accounts of the association, and report at the semi- 
 annual and annual meetings. 
 
 Article Vlll. Meetings and Quorum. 
 
 Section 1. Meetings. Tlie semi-annual and annual meetings of this 
 association shall be held on the second Wednesday of May and No- 
 vember of each year. A regular monthly meeting shall be held on the 
 first Wednesday of each and every month. Special meetings may be 
 called at any time by the president, upon the written request of seven 
 members of the company. 
 
 Sec. 2. Quorum,. Fifteen members may constitute a quorum for the 
 transaction of business at any regular meeting. If less numbers ap- 
 pear at the stated meeting tliey may adjourn for future day. 
 
 See 3. Shop Rules. All shop rules adopted by this association shall 
 be equally binding with these by-laws upon every member.
 
 CHAPTEE VI. 
 
 COOPERATIVE DATRYIKG. 
 
 Just What It is. By the cooperative system the 
 dairymen organize a corporation on a cooperative basis, 
 furnish the necessary capital for factory and appliances, 
 and manage the business through a board of directors 
 elected by the stockholders. Thus any profit in the 
 business is returned to the dairymen, instead of the lion's 
 share being taken by the proprietor of a factory. Under 
 this management, the cooperative creamery and cheese 
 factories will pay from five to twenty per cent better 
 returns to the farmers than proprietary factories, during 
 a term of years. Cooperation enables the dairymen to 
 get all the profit, while at the same time reducing 
 expenses. 
 
 Factory cheese-making has come to be the general 
 practice, the quantity of cheese made on farms being a 
 comparatively unimportant factor in the dairy situation. 
 The creamery system or factory method of butter-making 
 is now rapidly supplanting the making of butter on the 
 farm in a small way. The cooperative systeta greatly 
 reduces the work on the farm and in the home, while 
 adding to profits without going to a great outlay of time 
 and capital to change methods of farming. 
 
 In organizing cooperative companies for the manu- 
 facture of butter or cheese, or both, it is first necessary 
 that farmers should become thoroughly posted upon the 
 cooperative system and its advantages. The cooperator, 
 in dairying as in other affairs, must recognize that he 
 has a duty to perform as well as the company. 
 
 143
 
 144 HOW TO COOPERATE. 
 
 The Best Way to Proceed is as follows : Those 
 most interested should talk up the matter, secure further 
 particulars by corresponding with the successful coopera- 
 tive factories mentioned in the Appendix, also the vari- 
 ous dealers (not one alone) in factory and creamery sup- 
 plies, and then call a meeting of the farmers to consider 
 the whole subject. At this first meeting a committee 
 on by-laws should be appointed, also a canvassing com- 
 mittee, and perhaps a third committee to ascertain any 
 facts not stated to the meeting. An adjournment should 
 then be taken for two or three weeks, just far enough 
 ahead to give the committees time to do their work and 
 canvass the locality for subscriptions to the capital stock, 
 bnt not long enough to allow interest in the matter to 
 cool. More will be accomplished by pushing things in 
 short order than by moving too slowly. At the same 
 time care should be taken to make no mistake. 
 
 The committee on by-laws especially should report a 
 scheme of organization that shall be thoroughly legal 
 under the State laws. At the adjourned meeting, or 
 as early as possible, the association should be legally per- 
 fected and a portion or all of the capital stock paid in. 
 Not until this is done should the question of the location 
 of cheese factory or creamery be decided, because on 
 this point there are often serious differences of opinion 
 which may be carried to the extent of disruption if the 
 cooperators are not sufficiently bounden to hold together 
 until they have learned that cooperation means the 
 greatest good to the greatest number as well as absolute 
 justice to each individual. Many points as to the prac- 
 tical management of the business and conduct of the 
 factory are to be considered in locating it. Accessibility 
 to patrons and to depot, freight, express and telegraph, 
 good water, perfect drainage, good roads, cheap ice, 
 freedom from anything that might contaminate the qual- 
 ity of the butter all these points must be attended to.
 
 COOPERATIVE DAIRYING. 145 
 
 What to Avoid. The creamery '.'sharks," who 
 excite farmers in out-of-the-way places by marvelous 
 stories of creamery profits, should be given a wide berth. 
 The market reports show what butter sells for. No 
 method of working milk will get out of it moife butter 
 than there is in it. Judge df what a creamery can do 
 in your section by investigating as to what the system 
 accomplishes in towns where the conditions are similar 
 to your own. Avoid a big capital ; $1,200 to $3,000 is 
 enough for 300 to 1,000 cows. Above all, investigate 
 thoroughly the various systems of creamery management, 
 and adopt the one which seems best and cheapest for 
 your special circumstances. Don't take the estimate of 
 any single outfitter of creameries, but get bids from 
 them all. 
 
 THE ASSOCIATED CREAMERY. 
 
 Its Benefits. The butter made by forty different 
 housewives is of forty different kinds, put up in forty 
 different styles, and worth forty different prices. It has 
 forty different colors, forty different grains, forty differ- 
 ent flavors, and forty different degrees of saltness. Now 
 take all this cream, let it be mixed and made by one 
 experienced butter-maker, atid the forty different kinds 
 are blended into one, with only one grain, flavor, color 
 and taste. The price at once goes up because it is uni- 
 form and the one quality can be obtained in larger quan- 
 tities. Creamery butter sells at from four to ten cents 
 per pound above the bulk of farmers' butter. 
 
 Another Great Saving is that it takes the work out 
 of the house and gives the housewife more time for her 
 other work and a chance for reading or other enjoy- 
 ments. This is seldom taken into consideration in fig- 
 uring up the profits, but should not be lost sight of, for 
 it is a big factor. Many things, such as the kind of 
 man, kind of cows breed, feed and care and ability of 
 the butter-maker, influence the quality of butter and 
 10
 
 146 
 
 HOW TO COOPERATE. 
 
 the price obtained for it. If everything is first-class, 
 then the top price will be obtained for the butter, while 
 if any one thing is only second or third rate, the butter 
 will be the same and the price accordingly. The reason 
 creamery butter is sought after in the markets at a 
 higher price than dairy butter is because of its uniform- 
 ity. Tlie better the grade the higher the price that 
 it commands. 
 
 The cooperative creamery is practical and sensible and 
 should be adopted in every neighborhood where dairying 
 is practiced to any extent and there are enough cows to 
 
 f^L!M^>^ 
 
 no. 16. Elevation of a Model Ci!eam Gathering Butter 
 Factory. 
 
 support one. They have been made successful in the 
 past and they will be more so in the future. 
 
 A Practical Success. Farmers to whom the idea 
 is new will be surprised at the number of cooperative 
 creameries already in successful operation. Out of more 
 than one hundred and fifty creameries in New England 
 alone, eighty per cent are thoroughly cooperative
 
 COOPEBATIV^E DAIRYING. 147 
 
 owned by the farmers, managed by their directors, 
 through a superintendent employed under their super- 
 vision, and all receipts (setting aside a reserve fund and 
 five or six per cent on capital stock) above expenses de- 
 clared in dividends on the milk or cream furnished. 
 Some of these cooperative creameries are ten to fifteen 
 years old. The returns from thirty of them for the year 
 ended Jan. 1, 1891, showed payments net to patrons for 
 cream taken at the farmers' door of twenty-one cents per 
 pound of butter as the average for the year, in spite of 
 the lowest market known for years. In ordinary markets 
 the best creameries pay twenty-four to twenty-seven cents 
 net to patrons for the whole year. The capital varies 
 from $3,000 to $4,000, product from 20,000 to 350,000 
 pounds, and total payments to patrons from $4,000 to 
 $75,000 in the year. Massachusetts' cooperative cream- 
 eries made 6,000,000 pounds of butter in 1890, and Con- 
 necticut's nearly as much. 
 
 In most of the Central and Western States no such 
 proportion exists of cooperative to proprietary creamer- 
 ies. Yet many, perhaps the greater part of them, while 
 owned and managed individually, are nevertheless oper- 
 ated, to a large extent, on a modification of tlie coopera- 
 tive plan. That is to say, the patrons furnish the milk, 
 the manufacturer makes it up at a given price, sells it, 
 and the net proceeds (be the same more or less) are dis- 
 tributed among the patrons. A considerable number, 
 but probably not one-fourth of the total number, are 
 owned and managed by the patrons or cooperatively. 
 
 Reasons for Failure. The scarcity of such cream- 
 eries in the West is due to the fact that dairymen 
 have been victimized to a large extent by creamery 
 sharks, in the manner described under the heading, 
 "What to avoid." A large number of creameries estab- 
 lished under such auspices are now defunct. They rep- 
 resent an investment of from $5,000 to $7,000 whore
 
 148 HOW TO COOPERATE. 
 
 $2,000 or 13,000 would have been abundant. Such 
 factories can often be bought up for a few cents on the 
 dollar, and, reorganized on a thoroughly cooperative 
 basis, can be made to pay under careful management. 
 
 Another great difficulty has been that the creamery 
 was operated only during the summer, when prices of 
 butter were low. It must run twelve months in the 
 year for the best success, and make more butter in win- 
 ter than in summer. This plan will also pay the farmer 
 much better than the prevalent over-productive summer 
 dairies. 
 
 Again, the factory must be well patronized by the 
 farmers, for the greater the product the less the expenses 
 per pound and the greater the net returns to farmers. 
 The more concentrated the milk or cream routes the less 
 the cost of gathering cream or milk. The butter ex- 
 tractor, however, may enable one central factory to 
 cover a much larger area than is now possible. 
 
 The Michigan Method In many cases the method 
 of payment employed in the successful cooperative 
 creameries in the East is modified in the West. The 
 method at the only (1890) associated creamery in Michi- 
 gan, which is quite successful, is thus described by Man- 
 ager S. J. Wilson, of Flint : 
 
 "Our stock is divided into shares of twenty-five dol- 
 lars each. No person can hold more than two shares of 
 stock. We purchase cream, paying about the price of 
 dairy butter, from stockholders and those who are not, 
 just alike. We keep a margin between the price we pay 
 for cream and what we sell the butter for, so as to cover 
 expenses and a little more all the time. We take sam- 
 ples and test each man's cream every time and pay ac- 
 cording to the butter value shown by these tests. The 
 first of April and October, or twice a year, we pay seven 
 per cent interest on the stock, and the balance is declared 
 as a dividend, not upon the stock, but upon the stock-
 
 COOPERATIVE DAIRYING. 
 
 149 
 
 ^ z 
 
 ^ - 
 
 i
 
 160 HOW TO COOPERATE. 
 
 holders' cream or butter, according to the amount fur- 
 nished. No one is allowed to share in the profits of 
 cooperation unless they take, at least, one share of stock. 
 We have a board of directors who meet once a month, 
 or when called together by the manager, who lay down 
 the rules to govern the business of the company. The 
 manager has full power, under the directors. He hires 
 all the help, sets the price on the cream and sells the 
 butter. He is also treasurer aud pays for the cream, 
 labor, and all supplies. He makes a statement of the 
 business the first of each month, for the preceding 
 month, also a financial statement w^iich the directors 
 examine and pass upon. In fact, he has full control of 
 everything under the instructions of the directors. Our 
 books and mode of testing the cream are open to the 
 inspection of patrons at all times. Our patrons' cream 
 account we keep in a special ledger, so we can tell> in a 
 moment, just how many gauges of cream any patron has 
 furnished, what per cent it tested, how much butter it 
 made and what it came to. "We believe these are the 
 right principles on which to operate a cooperative cream- 
 ery and, if rightly managed, will result in great benefit 
 to all parties concerned." 
 
 The By-Laws and Rules These vary somewhat 
 in different sections, but a good model are the following, 
 which are generally used in the New England and 
 Northwestern cooperative creameries : 
 
 I. Tills iissociation shall be known as the cooperative cream- 
 ery association. 
 
 II. The purpose of the association shall be to locate, establish and 
 carry on the manufacture and sale of milk products, in such a manner 
 as will conduce to the greatest convenience and prolit of the producers 
 
 over the greatest amount of territory in the town of and vicinity. 
 
 Also to purchase, use, and hold real and personal estate necessary for 
 the transaction of the business of the association. 
 
 III. The cai)ital stock of the association shall be dollars, di- 
 vided into shares of ten dollars each. 
 
 IV. This association shall be cooperative. Cream or milk may be 
 purchased or accepted from any person not a stockholder on the same 
 terms and conditions as may be prescribed for stockholders.
 
 COOPERATIVE DAIRYING. 151 
 
 v. Any person directly engaged In agricultural pursuits may be- 
 come a member of tliis association by taking one or more siiares of 
 tlie stoclc of tlie association. 
 
 VI. 1. The regular meetings of the association shall be held semi- 
 annually, viz., on the first Monday in and in in each year, 
 
 at such time and place as the board of directors may determine, and 
 notice of such meeting shall be given by the clerk to each member by 
 mail seven days at least previous to the date of said meeting. 2. Spe- 
 cial meetings may be called either by the president with the advice 
 and consent of a majority of the directors, or upon written request of 
 one-third of the stockholders of the association, ipon seven days' 
 nt)tice as above. 3. Meetings of the board of directors may be called 
 by the president or by any two directors. 
 
 VII. 1. Tlie ofiRcers of the association shall consist of a president, 
 clerk, treasurer, five directoi-s and two auditoi-s. 2. The president 
 shall be chosen annually by the board of directors, by written ballot, 
 at the regular meeting in October. 3. The clerk, treasurer, board of 
 directors and auditors shall be chosen by the stockholders annually, 
 by written ballot, at the regular meeting in October, and all ofBcers 
 shall hold office till others are chosen and qualified in their stead. 
 Vacancies in the above-named offices may be filled at any meeting of 
 the stockholders; in the meantime by the board of directors. In case 
 of the absence of the clerk, a temporary clerk may be chosen and quali- 
 fied in his stead. 
 
 VIII. At any regularly called meeting of the association nine of the 
 members thereof, and at any meeting of the board of directors three 
 members thereof, shall constitute a quorum for the transaction of busi- 
 ness. A less number may adjourn from time to time. 
 
 IX. It shall be the duty of the president, who shall be a director, to 
 preside at all meetings of the association, and of the board of directors, 
 preserve order therein, put all questions, announce all decisions, and 
 in case of an equal division to give the casting vote. He shall receive 
 and safely preserve all bonds required of the officers of the association 
 and sign all certificates or documents issued by the association or 
 board of directoi-s. In the absence of the president, it shall be the 
 duty of one of the board of directors, in the order of their seniority, to 
 preside at any meeting. 
 
 X. It shall be the duty of the clerk to attend all meetings of the 
 association and of the board of directors, and to keep a correct record 
 of the same, which record sliall be open for the inspection of any mem- 
 ber. He shall give notice of all meetings, and of all appointments on 
 committees, to each member thereof, and to each officer chosen of his 
 election, and shall serve all .such other notices as appertain to his office 
 or as may be directed from time to time by the association or board of 
 directors. He shall attest all certificates or documents issued signed 
 by the president, shall file all blUs and reports and such other docu- 
 ments as may be ordered to be filed, and shall carry on all such corres- 
 pondence as may be directed; shall act as secretary of all committees 
 when called upon; shall keep a correct financial account between the 
 association and its members, and shall have charge of all property not 
 otlierwise disposed of. He shall give such bonds for tlie faithful per- 
 formance of his duty, and r<n'<'iv{> sndi compensation for his services, 
 as the board of directors may determine.
 
 108 
 
 HOW TO OO6PERATB. 
 
 XI. It. shall be the duty of the treasurer to receive all money belong- 
 ing to the association, giving his receipt therefor. He shall draw all 
 money for the payment of trlaims against the association under the 
 direction of the board of directors. He shall m.ake a report to the 
 board of directors at such times as they may require. He shall per- 
 form all duties required of him by the laws of the commonwealth and 
 shall give such bonds for the faithful performance of his duty as the 
 board of directors may require. 
 
 XII. It shall be the duty of the board of directors to attend to the 
 general affairs of the association, invest the funds of the same, appoint 
 such other agents and officers as in their judgment the interests of the 
 association require, and fix all compensations. They shall keep or 
 cause to be kept a correct account of all cream or milk furnished by 
 the stockholders or patrons, and a correct account of all sales. They 
 
 Fig. 18. Elevation of a Cheese Factory. 
 
 shall prescribe the rules and regulations governing the collection and 
 delivery of cream and milk ; may cause the quality of the same to be 
 tested as often as may be deemed expedient ; may authorize the prem- 
 ises of any stockholder or patron to be inspected, and may reject and 
 refuse to collect or receive any cream or milk that is unsatisfactory or 
 not furnished in compliance with the prescribed regulations. They 
 shall establish prices, and have full power over the business of the 
 association, and in all cases pursue such measures as in their judgment 
 will tend to the best interests of the association. They shall make a 
 full report of their doings, and a full statement of the business at each 
 regular meeting, or whenever called upon to do so by vote of the 
 stockholders. 
 
 XIII. The duties of the auditors shall be to atidit all accounts of the 
 association, making a report to the board of directors at the time of 
 the regular meetings, and at such other times as they may require.
 
 COdPEUATIVE DAIRYING. 158 
 
 XIV. The net profits of the business of the association, after such 
 deductions liave been made as the laws of the commonwealth require, 
 shall be divided pro rata among the stockholders according to the 
 number of shares held by each. [Note. It is understood that the prof- 
 its shall not exceed six per cent on capital, all receipts in excess of 
 this sum and necessary reserves being declared in payments to patrons 
 for cream or milk furnished.] 
 
 XV. 1. Any person doing business for the association, or incurring 
 expense therefor, sliall receive a just remuneration for such services or 
 expense. 2. All documents issued by the association shall bear the 
 seal thereof, said seal to be in charge of the clerk. 3. The directors 
 shall procure a corporate seal. 4. No member of the association can 
 transfer his stock to any person not directly engaged in agricultural 
 pursuits. 5. In case sliares are transferred by one person to another, 
 the certificate thereof must be surrendered to the treasurer, and the 
 board of directors shall cause another certificate to be issued to the 
 person to whom the transfer is made. 
 
 XVI. These by-laws shall not be altered or amended unless such 
 alteration or amendment be proposed in writing, one meeting previous 
 to action being taken ; provided also that two-thirds of the members 
 vote in the affirmative. 
 
 THE COOPERATIVE CHEESE FACTORY. 
 
 Extent of the System. Probably nine-tenths of 
 the best cheese factories in Central New York are run 
 on the cooperative plan. Fully fifty per cent of the 
 cheese factories in the Northwestern and Middle States 
 are cooperatively managed. In the Central and West- 
 ern States the proportion of proprietary factories is much 
 larger. Even in the great dairy State of Wisconsin 
 only about half of the factories are cooperative. It is 
 safe to estimate that sixty per cent of the cheese made 
 in factories in the United States is the product of coop- 
 erative effort. The system has been found altogether 
 successful, yet there are many thousands of neighbor- 
 hoods that might benefit by a cheese factory, but yet go 
 without, waiting for a proprietary factory to be built. 
 
 Two General Systems Prevail. In one, the pa- 
 trons contribute, in proportion to the number of cows 
 they own, toward the expense of erecting a building and 
 procuring the necessary outfit. They select a manager 
 or managing committee, who employ the necessary help, 
 purchase the needed supplies, market the cheese, deduct
 
 164 
 
 HOW TO COOPERATE. 
 
 all expenses from the amount received for sales and 
 divide the net proceeds to each patron according to 
 the amount of milk furnished. Those who have not 
 contributed to the capital stock are charged a small sum 
 for the use of the factory. This method is the one 
 which gives the best results because it maintains the 
 most constant interest on the part of the farmers and 
 their representatives.- 
 
 In the Other System the patrons erect the build- 
 
 Tir -rm"'] JT 
 
 Fig. 19. Ground Plan of Cheese factory. 
 
 ing and engage or contract with some individual or com- 
 pany to furnish the outfit and manufacture the cheese 
 at a stated price per pound. More frequently the 
 farmer-company furnishes machinery and building, con- 
 tracting with the cheese-maker to do the work and pro- 
 vide the supplies at a stated price. The latter is not 
 the strictly cooperative method, and is only recom- 
 mended where inefficiency among farmers prevents their 
 own company managing the business successfully. 
 Where factories are run under contract, the cheese- 
 maker usually charges $1 to $1.10 per one hundred
 
 COOPERATIVE DAIRTISTG. 155 
 
 i)Ounds for making cheese and furnishing supplies, the 
 dairymen delivering the milk at the factory. In some 
 instances the cheese-maker guarantees the quality of 
 cheese, and m others does not. The same general princi- 
 ples apply to organizing a cooperative cheese manufactu- 
 ring company that are true of cooperative butter-making. 
 The Regulations for a Cheese Factory may be 
 substantially like those in vogue in the great cheese- 
 making sections of New York State, in substance as 
 follows : 
 
 Article 1. This association shaU be known as the the Fac- 
 tory Association. 
 
 Art. 2. Tliere shaU be two meetings lield yearly at the factory one 
 in the spring and one in the fall or winter, to be called by the president. 
 
 Art. 3. At the first meeting in each year there shall be chosen by the 
 patrons a president and a treasurer and salesman. 
 
 Art. 4. The salesman and treasurer shall sell all the cheese, and as 
 soon as he shall have sold and collected for one month's make of 
 cheese, he shall, after paying the proprietor for making and deducting 
 the other expenses, divide the proceeds pro rata, according to the num- 
 ber of pounds of milk delivered among the patrons. 
 
 Art. 6. It shall also be the duty of the treasurer and salesman to keep 
 the books of the association, and make a final dividend yearly, to all 
 the patrons, whenever all the cheese is sold and paid for. He shall 
 also keep a milk book, showing the number of cheese made each 
 month, to be taken from the factory's books. Said treasurer's milk 
 and cheese book shall be subject to the inspection of the patrons and 
 president. 
 
 Art. 6. The manager shall keep an accurate account with each patron 
 of the number of pounds of milk delivered each day. Also an account 
 of the number of cheese made, which accounts shall be subject to the 
 inspection of the officers and patrons. 
 
 Art. 7. The president shall be authorized to preside over the entire 
 transactions of patrons or officers, and constitute a committee to inves- 
 tigate all matters pertaining to said factory, and if any contingency 
 sliould arise, he shall be authorized to bring suit in law against any 
 delinquent. 
 
 Art. 8. The manager (cheese-maker) shall be authorized to criticise 
 all milk ofl'ered, and he shall reject the same if in his judgment said 
 milk is unfit to run into cheese; also to test with lactometer any milk, 
 and if found to vary from a standard of milk known to be pure for the 
 day shall report the same to the president, whose duty it shall be to 
 send out a committee of three to the premises of said delinquent, wit- 
 nessing the transit of the milk on the ensuing day from the cow to 
 the factory, which shall again be testeil as on the previous day, and if 
 found to vary the party in qtiestion shall be adjudged guilty of having 
 diluted the same in ratio, as shall aiijx'ar. The penalty for the first 
 offence shall be twenty-five dollars; second, one hundred dollars.
 
 156 
 
 HOW TO COfiPERATE. 
 
 Art. 9. Tlie president shall also have power to call special meetings 
 of the patrons at any time he may deem it necessary, and he shall be 
 reqnired to call a meeting of the patrons whenever a re<iuest is pre- 
 sented to him signed by ten patrons.' Whenever a meeting is to be 
 called the president shall give patrons at least two days' notice. 
 
 Art. 10. The action of the treasurer and salesman in regard to selling 
 or holding cheese shall be governed by a vote of a majority of tlie 
 patrons. If no vote is taken, he Is to exercise his best judgment in the 
 matter. 
 
 Art. 11. In voting at any annual or special meeting of this associa- 
 tion, the patrons shall be allowed one vote for every cow the milk of 
 which is brought to the factory. [This may be altered to one vote on 
 each share of the capital stock or one vote to each shareholder.] 
 
 Art. 12. The treasurer and salesman shall attend all meetings of the 
 association whenever possible, and shall take minutes of the proceed- 
 ings, and place the same on file in his oflace, and in otlier respects act 
 
 Fig. 20. Second Story of Cheese factory. 
 
 as secretary. In case he should be absent, a temporary secretary may 
 be chosen. In case the president is absent at any meeting, a tempo- 
 rary president may be chosen for a presiding officer. 
 
 COOPERATIVE MILK COMPANIES. 
 
 The Distribution of Milk in cities at present sup- 
 ports an enormous number of middlemen who get the 
 larger share of the profits. Farmers who furnish milk 
 to these markets receive only from one to three cents 
 per quart for their milk, according to the locality and 
 season. Consumers pay five to ten cents per quart ; 
 middlemen set the difference in prices. In a few places
 
 COOPEEATITE DAIKTING. 157 
 
 the producers have united in a cooperative company to 
 peddle the milk themselves. The oldest instance of this 
 kind is the Onondaga milk association of Syracuse, N.Y. 
 
 This plan was original with the promoters, especially 
 with C. L). Avery, for several years its secretary and 
 treasurer, who now holds a like position in the Central 
 New York Pomona Exchange a new effort at coopera- 
 tive distribution among farmers. Tlie Onondaga Asso- 
 ciation has a special charter, dated March 9, 1872, but 
 this is not needed under the corporation or cooperative 
 laws that exist in most States to-day. Starting with 
 $5,060 capital, this increased to nearly 170,000, but is 
 now being retired, over $8,000 having been bought in 
 during 1890. The association has net assets of $105,000 
 and is quite prosperous, though its benefits are mainly 
 confined to its shareholders (who all furnish milk), out- 
 side producers getting no dividend on milk above the 
 usual market price paid. The by-laws are similar to 
 those of other cooperative associations, the business be- 
 ing mainly in charge of an executive committee amena- 
 ble to the directors. The treasurer delivers monthly 
 statements to the directors of milk received and deliv- 
 ered, and the directors "cause to be made and declare 
 to be paid a dividend to the shareholders according to 
 the quantity of milk received from them respectively 
 during the preceding month, out of the net profits then 
 in the hands of the treasurer." 
 
 The Syracuse company was originally formed by a 
 union of several farmers who peddled their own milk, 
 who took shares on the basis of twenty dollars for each 
 cow. The average milk of one cow was estimated at six 
 quarts daily, and peddlers who sold in excess of their 
 own production were awarded shares on this basis for 
 their routes. Members were required to furnish milk in 
 proportion to the stock held by them, the directors hav- 
 ing authority to refuse any or all milk in excess of this 
 proportion.
 
 158 HOW TO C05PERATE. 
 
 The Springfield cooperative milk association of Spring- 
 field, Mass., is also quite successful, returning the far- 
 mers an average of three cents per quart net for all 
 milk they furnished in the year 1890, besides returning 
 clean cans. This is much better than the average price 
 received by those who shipped milk to Boston or New 
 York during the same year. The Springfield association 
 handles 2,500,000 quarts of milk and the Syracuse com- 
 pany upward of 3,000,000 quarts annually, with cream, 
 butter and cheese to correspond. The saving to farmers 
 is from one-quarter to one cent per quart, to say nothing 
 of many other advantages. 
 
 An attempt is now (1891) being made to organize a 
 similar company for the control of the New York mar- 
 ket. Its name is the Union milk company, C. 0. Smith, 
 of Meadow Brook, Orange County, N. Y., being the 
 secretary. A similar project has been much discussed by 
 the New England milk producers' union, of which J. D. 
 W. French, of 160 State Street, Boston, Mass., is the 
 president. The Chicago Milk Shippers' Association, 
 which began business May 1, 1891, has asimilar purpose ; 
 its principal executive officer is F. E. Cox, of Nunda, 111. 
 Philadelphia shippers are also getting together. Edwin 
 Satterthwait, Stall 300, Twelfth Street Market, Phila- 
 delphia, and S. B. Larzelere, of Doylestown, Pa., are 
 leaders in the movement. Milk producers and shippers 
 interested should apply to these parties for further in- 
 formation about theic respective methods of operation.
 
 CHAPTER VII. 
 
 COOPERATIVE FIRE INSURANCE. 
 
 The Old Plan too Expensive. Ordinary fire in- 
 surance in the old line stock companies costs too much. 
 Such companies in the United States and Canada receive 
 in the aggregate about $100,000,000 annually for the 
 insurance they carry. The average aggregate losses 
 paid by them during the past six years have been only a 
 little over one-half of that sum. To be exact, for every 
 $100 received by these companies for premiums or fees 
 for carrying insurance they have paid for losses on the 
 average for the past six years $58.30. This has left a 
 balance of $46.70 out of every $100 paid to the compa- 
 nies for profits and to defray the cost of conducting the 
 business. This statement is exclusive of the business 
 done by the great majority of mutual and cooperative 
 insurance companies among farmers. > Beyond question 
 the system is wrong which compels the public to pay 
 just about twice what insurance actually costs. Forty- 
 seven per cent is an exorbitant charge for the expense 
 and profits of insurance. Of this, fully ten per cent is 
 the average present return on the capital invested (in 
 former years the profits have averaged from eleven to as 
 high as fifteen per cent) ; at least fifteen per cent goes 
 for local agents' commissions, and the remaining twenty 
 per cent pays the salaries, rents and other expenses of 
 the business as now conducted. This is too much for 
 the public, and especially for farmers, to pay. 
 
 We are not alone in this position. The Insurance 
 Commissioners of several States have repeatedly urged 
 
 159
 
 160 HOW TO COOPERATE. 
 
 the same thing. Particularly is this true of the Massa- 
 chusetts insurance reports. As Superintendent Tarbox 
 said in his report for 1885: "The too great cost of 
 insurance challenges the attention of a frugal public. 
 We pay too much for insurance protection. Plainly, it 
 should not as for a quarter of a century it has cost 
 the people of this country a hundred million dollars and 
 more to protect themselves by insurance against sixty 
 million dollars' loss of property by fire." 
 
 While on the average, forty-seven per cent of the* 
 money paid the old line companies goes into profits and 
 expenses, in some States and in some years the propor- 
 tion of profit is much larger, and again it may be much 
 smaller. Occasionally the losses iu a State exceed the 
 premiums paid therein in the same year. And during 
 the past year or two some companies have made small 
 profits owing to the extraordinfiry fire losses. But the 
 general statement is incontestable that insurance costs 
 altogether too much. 
 
 Farm and Town Mutual Insurance Companies. 
 The exorbitant cost of insurance has led farmers in 
 some States to organize cooperative or mutual compa- 
 nies in which to insure themselves. Pennsylvania was 
 the first State to adopt this plan, and some of her farm 
 mutuals are more than half a century old. Michigan 
 has had a good system of farm mutuals in operation for 
 twenty-five years, and Minnesota, Wisconsin, lowu, Illi- 
 nois and Ohio have since adopted it or something simi- 
 lar. The practice is quite extensive also in New York, 
 New Jersey and Maine, but in most other States it is 
 comparatively unknown. In not a few States it is un- 
 lawful to practice such business. In Texas, for instance, 
 some mutuals organized to insure gin-houses have been 
 closed up by the Attorney-General, although the Patrons 
 of Husbandry of that State have a small company with 
 $135,000 of insurance (1888). In Missouri, a mutual
 
 CoOPEilATfVE FIRE INSURANCE. 161 
 
 can do business only when it has a guarantee fund of 
 $50,000, or with premium notes for 1100,000 with thirty 
 per cent thereof paid in cash. Louisiana law prohibits 
 anything like cooperative fire insurance. Dakota re- 
 quires a capital of $100,000. Utah has no farm mutu- 
 als, though the Mormons have a system of mutual 
 insurance. Anything like farm mutuals is compara- 
 tively unknown in North Carolina, Virginia, West Vir- 
 ginia, Tennessee, Ehode Island, Colorado, Alabama, 
 Florida, Georgia, Indiana, Idaho, Indian Territory, 
 Kentucky, Kansas, Maryland, Mississippi, Montana, 
 Nevada, New Mexico, Oregon, Washington and Wyo- 
 ming. New Hampshire had a grange fire insurance 
 company some years ago and has recently revived it. 
 Vermont has a similar company, but it is not patronized 
 as it should be. The Massachusetts grange has one 
 company covering the whole State, and so has Connecti- 
 cut, the law of both States requiring $500,000 of appli- 
 cations before a company can issue policies ; these two 
 companies are operating very auspiciously. Nebraska 
 has only one codpcrative farm company, and the State 
 laws do not encourage such. Michigan has by far the 
 best code of laws in existence regarding farm mutuals, 
 which should be adopted in every State. Under such 
 laws, success is absolutely certain, witli competent and 
 faithful officers and a prompt paying membership. 
 
 Some of the community sects, like the Shakers and 
 Mennonites, have insured themselves for years. Indeed, 
 the various Mennonite. mutuals in this company seem to 
 liave sprung from tlie Tiegenhoff Fire Insurance Asso- 
 ciation in Prussia, which originated in 1623, and has 
 been in continuous existence ever since. The coopera- 
 tive idea is successfully practiced by many city and town 
 mutuals, being equally a])plicable to them. 
 
 The General Principle of all these Mutuals is to 
 insure the property of members for stated periods, exact- 
 11
 
 163 HOW TO COOPERATE. 
 
 ing a small fee only in advance for the simple expenses 
 of printing, secretary's services, and cost of examining 
 risks, also a note for a certain per cent of the amount of 
 the policy or premium, which note carries no interest 
 and is payable in installments as demanded. Whenever 
 loss occurs, an assessment to pay it is levied upon these 
 notes pro rata. Thus the patrons of these farm mutuals 
 pay only the actual losses by fire, plus a moderate sum 
 for actual expenses. Some farm mutuals make their 
 fees sufficient to accumulate a reserve fund, which prop- 
 erly administered adds much to their stability. This is 
 objected to by others as liable to cause extravagance in 
 management or losses in investments. But it gives the 
 mutual a means for regulating the cost of insurance, 
 thereby making one five-year policy cost about the same 
 as in another five years. This is more equitable for the 
 insured, and also makes it a greater object for them to 
 renew their policies. We decidedly approve of a small 
 reserve fund, and would make the fees sufficient to accu- 
 mulate it. 
 
 Insurance companies on this general plan have proved 
 remarkably successful, greatly reducing the cost of in- 
 surance to their patrons in the States named, as will 
 appear from the following facts and experiences, which 
 are substantially unchanged to-day : It is believed that 
 the average rate charged in 1S89 for insurance on farm 
 property, including both houses and barns, was at least 
 one and one-fourth per cent, or $12.50 per $1000 for 
 five years (equal to $2.50 per year on each $1000 of in- 
 surance), in the States west of Pennsylvania and New 
 York. In the Eastern States, the average farm rate is 
 assumed to be one per cent, or $10 per $1000 insurance 
 for five years (equal to $2 per year on each $1000 of 
 insurance), except that in Maine it is one and one-fourth 
 to one and one half per cent. Of course, higher and 
 lower are obtained, but the following estimate errs, if 
 anything, in being too low :
 
 COOPERATJVE FIRE INSURANCE. 
 
 163 
 
 Average Cost Per Year for Each $1000 Insur- 
 ance The average of the farm mutuals has been com- 
 piled with great care from the insurance reports of the 
 respective States, supplemented, where necessary, by 
 additional data collected from the secretaries of compa- 
 nies of this character, to whose painstaking reports is 
 due much of the value of this chapter as an exposition 
 of the whole subject of cooperative insurance among 
 farmers. The total earnings show the amount saved on 
 the insurance carried by the mutuals ; thus a gain of 
 11.01 per 81000 of insurance saved $10,990 on the 
 $10,882,000 of insurance in the twenty-nine Maine mu- 
 tuals, and so on : 
 
 COST OF COOPERATIVE AND STOCK INSURANCE. 
 
 ^1 
 
 29 
 
 77 
 
 Cost for 1,000 Insurance in 
 one year, 1887. 
 
 Maine 
 
 Connpcticnt . 
 
 New Yolk 
 
 195 *Peiiiisy 1 vunia 
 
 91 tOhio 
 
 160 , Illinois 
 
 72 Michigan 
 
 101 Iowa 
 
 152 I Wisconsin 
 
 55 Minnesota 
 
 940 Totals and averages. 
 
 t/5 a, 
 
 
 So 
 
 2.50 4*1.49 1.01 
 
 2.00 
 
 1.20 
 
 2.00 
 
 1.23 
 
 2.00 
 
 1..50 
 
 2..50 
 
 1.47 
 
 2.50 
 
 1.56 
 
 2.50 
 
 0.88 
 
 2.50 
 
 1.68 
 
 2.50 
 
 1.78 
 
 2.50 
 
 0.92 
 
 0.80 
 0.77 
 0.50 
 1.03 
 0.94 
 1.62 
 0.82 
 0.72 
 1.58 
 
 e ss s 
 o-^ e g 
 
 c-2g3 
 ^ ft. 
 
 $10, 
 
 5, 
 
 67, 
 
 525, 
 72, 
 57. 
 
 252, 
 39, 
 62, 
 21 
 
 ,990 $10,1 
 
 984 6,; 
 
 314 87,- 
 
 0001 105,( 
 
 7321 70,( 
 
 882,000 
 373,306 
 422,468 
 OOO.OOy 
 614,62tj 
 357,755 
 001,36.-, 
 258,00!, 
 299,70^ 
 650,49): 
 $2.35 $1.37 $0.98 $1,116,049; $645,859,72" 
 
 675 61, 
 722 156,( 
 
 7691 
 296 
 
 567 
 
 *Of the 195 Pennsylvania mulnals, many insure other than farm 
 property; tlie estimate is based on the experience of twenty farm mu- 
 tuals fairly selected. At least one fourth of the $420,000,000 of Pennsyl- 
 vania mutual insurance is believed to be exclusively on farm property. 
 
 tThe average excludes city, live stoclc and plate glass mutuals. 
 
 Progress of the System. Since the foregoing data 
 were collected in 1887, there has been a steady increase 
 in the number of cooperative insurance companies and 
 the amount of insurance carried has been constantly 
 increased. Contrast the amount at risk in the New 
 York mutuals three years ago, $87,422,468, with the 
 following statement from the committee on cooperative 
 fire insurance to the New York State grange in Febru- 
 ary, 1891 :
 
 164 HOW TO COOPERAIB. 
 
 The reports from companies show that December 31, 
 1890, there were in force 53,802 policies, covering risks 
 to the amount of $101,102,812, a gain of about $10,000,- 
 000 since the report of 1889, indicating a healthy condi- 
 tion. The amount reported for expenses for the last 
 three years is 1122,537; for losses, $250,274, showing a 
 saving of about fifty per cent over insurance in stock 
 companies, or in other words over $100,000 per year, 
 which is no insignificant sum, considering the stringent 
 times of money among the farmers for the years our 
 report covers. But a still greater consideration than 
 any financial advantage has come through our system of 
 cooperation. Farmers have been taught self-reliance 
 and have demonstrated through these associations that 
 they are able to look after their own affairs instead of 
 delegating them to that class which by common consent 
 has always been called business men. Patrons have 
 shown that they were business men as well as tillers of 
 the soil. Your committee would also call your attention 
 to the fact that each succeeding year demonstrates, and 
 more clearly proves, that in every county where the insur- 
 ance has been restricted to the Order, there it has been a 
 great source of strength and support to the Grange. 
 And in every instance in which it has been allowed to 
 go outside, the effect has been to demoralize and weaken 
 the Order. Your committee would further report that 
 five companies have been organized during the past two 
 years and now show risks of over $2,000,000, and are in 
 a very healthy condition. The committee now, as one 
 year ago, would urge upon this body the importance of 
 encouraging these organizations by every possible means, 
 believing that they are strong and faithful allies of the 
 Grange,"
 
 COOPEKATIVE FIRE INSURANCE. 165 
 
 Cost Per Year of $i,ooo of Insurance. 
 
 
 In Stock Companies. 
 
 In Farm Mutuals. 
 
 Maine 
 
 Connecticut.. 
 New Yoik.... 
 Pennsylvan'a 
 Ohio 
 
 
 
 
 ^^MB 
 
 Illinois 
 
 Micliigan 
 
 
 
 
 
 
 
 Wi.sconsin 
 Minnesota... 
 Average 
 
 
 
 
 
 
 
 
 H^HH^^^^^I 
 
 The Savings of Cooperative Insurance. Th( 
 above tables make a flattering showing for farm mutuah 
 for a single year, indicating a saving by 940 cooperative 
 companies in ten States of over one million dollan 
 annually. But what are the facts in a long period ! 
 We will cite from two States whose records are quitt 
 complete : 
 
 Michigan Farm Mutuals. 
 
 No. of companies... 
 No. of members.... 
 
 Ri.sks in force 
 
 Assessments levied 
 Losses paid 
 
 1865. 1875. 
 
 1880. 
 
 61 
 
 1887. 
 
 24 38 
 
 7 
 
 16,585 1 47.2.'>4 
 
 76,016 
 
 93,87 
 
 $27,74.5,779 $92,204,349 
 
 $129,812,108 $156,001 .36f 
 
 27,48()| 1.57,917 
 
 209,833 149,(i5 
 
 20,345| 126,783 
 
 188,662 
 
 247,48
 
 166 
 
 HOW TO COOPERATE. 
 
 Illinois District, County and Township Mutuals. 
 
 No. of companies 
 
 Risks written during tlie year. 
 
 Risks in force Dec. 31 
 
 Expenditures for losses 
 
 Total expenditures 
 
 Ver cent of losses to risks in 
 
 force Dec. 31 
 
 Per cent of expenditures to 
 
 risks in force Dec. 31 
 
 1873. 
 
 1880. 
 
 1887. 
 
 30 
 
 $3,497,990 
 
 8,891,632 
 
 15,930 
 
 22,526 
 
 134 
 
 $9,177,095 
 
 32,764,232 
 
 19,859 
 
 35,855 
 
 160 
 
 $14,277,158 
 
 61,357,755 
 
 68,130 
 
 95,666 
 
 18 
 
 6 
 
 11 
 
 25 
 
 11 
 
 16 
 
 Totals 
 (1873-87, 
 
 Incltisive). 
 
 $i32',629',862 
 
 515,578,997 
 
 488,730 
 
 723,475 
 
 (Av.) 
 
 9 
 (Av.) 
 
 14 
 
 The expenditures, other than losses, have been thirty- 
 two per cent of the total paid out by these cooperative 
 companies. In stock companies, from forty to sixty per 
 cent of the receipts go for expenses other than losses, 
 averaging forty-six per cent. 
 
 The Cost in the Mutuals. The average cost for 
 insurance in the Michigan mutuals for twenty-eight 
 years has been less than $1.50 per $1,000 of insurance 
 per annum; in the Illinois mutuals, $1.40 per year for 
 fifteen years. This is a saving of from thirty to sixty 
 per cent or more over the rates of stock companies dur- 
 ing the same period, which formerly were much higher 
 than at present on farm property. At a low estimate 
 the farm mutuals have saved their patrons : 
 
 In Michigan, in twenty-eight years $3,500,000 
 
 In Illinois, in fifteen years 775,000 
 
 Total savings in two States $4,275,000 
 
 In other words, to have insured their property in the 
 old-line companies to an equal amount for this period 
 would have cost the patrons of farm mutuals in these 
 two States over four and a quarter millions of dollars 
 more than they have had to pay. If all farms insured 
 in these two States had been carried in farm mutuals, 
 the savings would have been very much larger. The 
 average savings of nearly 1,000 of these mutuals, so 
 graphically given on the preceding page, are still more 
 suggestive.
 
 COOPEBATIVE FIRE INSUBANCE. 
 
 1( 
 
 The conspicuous facts to be emphasized are that aboi 
 one thousand farm mutual companies are in successf 
 operation in tn States ; second, that they carry insu 
 ance on farm property to the amount of six hundri 
 and fifty millions of dollars ; third, that this insuran 
 cost the farmers one million dollars a year less than 
 it had been carried in the old-line companies at tl 
 average minimum rates; fourth, that this enormo 
 
 ^ssss.p>i^^:Xf 
 
 Fig. 21. Elevation of a Whole Milk Receiving Creamekv. 
 
 annual saving is the rule and not the exception. T 
 experiences of the past four years further confirm the 
 statements. 
 
 The Perils of Cooperative Insurance. But the 
 is a dark as well as a bright side to the ])ictnre, and 
 candid man should look at both. In a few cases fan 
 ers' mutuals have failed. An instance of this kii 
 occurred in one of the Eastern States. Tlie conij)ai 
 was organized twelve years ago as a grange comi)an 
 No policies were written outside of the Patrons of Hu
 
 168 HOW TO COOPERATE. 
 
 bandry for several years. But after securing what good 
 risks could be obtained in the Order it was thought best 
 to accept selected risks from outsiders^ to increase the 
 amount insured, and reduce the percentage assessed in 
 case of loss. This was not an unwise step, for the facts 
 show that the losses by fire were greater in proportion 
 to the amount insured inside of the Order than outside. 
 The insured gave a premium note for two per cent of 
 the amount of the policy. The nine directors were the 
 company's agents. One of them writes: 
 
 "After several years of prosperity our policies increased 
 to more than $500,000. They were written in the finest 
 farming sections of the State and great care was exer- 
 cised in taking only the best farm risks and at not more 
 than two-thirds of their value. No losses of any amount 
 occurred until about four years ago, when a large fire 
 necessitated a large assessment. From that time our 
 fortunes changed. Fires came honest fires, not over- 
 insured largely within the Order of Patrons, and of 
 course assessments followed, until we found, a year or 
 two since, that we had assessed nearly all that was due 
 on the premium notes so that a fire of $2,000 would take 
 all there was available. Not thinking it safe to continue 
 business with so small a margin with which to pay losses, 
 we canceled all policies after making au assessment to 
 pay all demands. The average cost for insurance per 
 year while the company existed was $3.49, or at the rate 
 of $17.45 for $1,000 insurance for five years, while the 
 stock rate probably would not exceed $15 in the same 
 time. In our company no errors were committed. 
 There was no dishonesty anywhere. Our directors were 
 farmers of strict integrity, good judgment, and a major- 
 ity of them had held public positions of trust requiring 
 business qualifications. We had as good farm buildings 
 as can be found in the State. Care was exerci.ied at 
 every point. Why we met with reverses I cannot answer.
 
 COOPERATIVE FIRE INSURATS"CE. 169 
 
 Insurance is a game of chance to a certain extent, and 
 no calculations can be made with any degree of certainty. 
 The fact is, more farm buildings are being burned than 
 formerly. In my judgment, no company can live long 
 that has only farm risks. Some are doing well now, 
 but stern facts lead me to believe that their foundation 
 is far from being secure. My ardor for mutual insur- 
 ance, particularly among farmers, has somewhat cooled, 
 and the record in this State is not flattering enough to 
 warrant great confidence in its stability." 
 
 One or two other mutuals in the same State are now 
 languishing, but most of them are very strong and popu- 
 lar, and are saving their members much money every 
 year. Some of the most enthusiastic supporters of farm 
 mutuals are in this very State, and base their judgment 
 on twenty to thirty years' experience in their own mu- 
 tual or cooperative companies. 
 
 The Mistakes of Cooperators. We should be der- 
 elict to our readers' interests, however, if we failed to 
 point out the mistakes from which not a few farm mutu- 
 als have suffered in a long and often costly experience. 
 Over-valuation is perhaps the greatest curse of all insur- 
 ance, and is to be specially guarded against in coopera- 
 tive farm mutual companies. It is the most prolific 
 cause of "spontaneous combustion." Combine bad 
 risks with over-insurance, so that it will handsomely 
 pay the insured to realize, and bad losses to the company 
 are sure to result. No policy should exceed two-thirds 
 of the actual value of the property, so that the loss will 
 be at least one- third. It is true that by allowing a 
 larger sum than the local mutual, the agents of the stock 
 companies often get this class of insurance. They pro- 
 tect themselves by paying only the actual value of the 
 property when it burns. But a farm mutual has no 
 business taking such risks at all. 
 
 The Most Careful Inspection of the property to be 
 insured is the first thing to secure. Nothing pays bet-
 
 170 HOW TO COOPERATE. 
 
 ter. Here is the prime safeguard against loss, and there- 
 fore one of the foundations of success. No personal, 
 social or financial relations between the inspectors and 
 the applicant should lead a company to insure a house 
 so constructed or occupied that its chances of being 
 burned are greater than usual. The policy must be so 
 strongly framed as to protect honest members against 
 incendiary fires. Practical and honest adjusters of losses 
 are also indispensable. The true spirit of cooperation 
 should be aimed at, so that, to use the words of the 
 North Yarmouth, Me., farm mutual, "when we have a 
 fire, the assessment does not seem like paying a tax, but 
 is more like a subscription to help an unfortunate neigh- 
 bor." The following tersely stated causes of the demise 
 of a Tillage mutual are enough to wreck any company, 
 and farmers' mutuals should be on their guard against 
 them. "The officers were men of no practical experi- 
 ence in business. The first epidemic of fires in the vil- 
 lage broke up the company. It insured everything, and 
 had quite a uniform rate. Its management showed an 
 entire lack of knowledge of the business. It was no 
 precedent for anybody. Its records were decidedly de- 
 fective. It cost as much as stock insurance and wasn't 
 half as safe." 
 
 Unbusinesslike Management. Too large a sum in 
 one exposure, or risk, has been a fertile cause of losses. 
 While the property in such cases may not be over-insured, 
 it is too great a risk for one company to take. Some 
 companies have also erred in making losses payable to 
 the mortgagee, thus adding another and uncertain ele- 
 ment to the moral hazard. Failure to allow for depre- 
 ciation in the value of buildings is a common cause of 
 over-insurance, the evil increasing each year that the 
 policy runs. "A large part of our losses," writes a 
 manager, " have been second-class buildings well covered 
 by insurance." The frequency with which this state-
 
 COOPEBATIVB FIRE INSURAKCE. 171 
 
 ment is made in the many reports on which this chapter 
 is based shows the necessity of emphasizing this point. 
 It is mainly for this reason that the Pennsylvania system 
 of perpetual policies is a wrong one. We quote further 
 actual experiences of great value to all interested in the 
 practical application of mutual insurance among farmers. 
 
 Says the manager of one of the largest Illinois mutu- 
 als, which is now quite successful, carrying about two 
 millions of insurance : 
 
 "The farmers who started the company were success- 
 ful in finding general support, but made a great many 
 mistakes owing to their inexperience. The first great 
 mistake was in not regularly organizing under the State 
 law. Another mistake was in not being careful enough 
 in taking risks. Another error was the rule to collect 
 fifty cents on one hundred dollars for the first five years, 
 and nothing thereafter until the losses and expenses 
 should exceed the income ; with light losses, this led to 
 a large surplus, which was loaned at interest, but on 
 poor securities, by which much was lost. The company 
 had to reorganize under the State law in 1883, assuming 
 the risks and assets and partly the mistakes of the old 
 organization. But as only new members were assessed, 
 the income is not increased every year. So an assess- 
 ment was ordered, which caused some dissatisfaction. 
 The company also paid the expense of re-insurance at 
 the end of each five years, which amounted to nearly 
 half of the expenses, and afforded no income. It is be- 
 lieved that the company has done right, however, in 
 ordering the assessment, so as to have money enough on 
 hand to pay losses when they occur, as assessments for 
 losses after they occur sometimes are slow in being col- 
 lected and make dissatisfaction." 
 
 Apropos of the concluding suggestion above, the sec- 
 retary of one of the many successful local mutual com- 
 })anies in Minnesota writes : *'One of our mistakes was
 
 in 
 
 HOW TO COOPERATE. 
 
 in not placing the membership fee higher so as to secure 
 suflBcient funds to enable us to pay losses as they occur, 
 thus avoiding the delay of making and collecting an 
 assessment. Our fees for membership were placed at $1, 
 and a policy fee of $1 for each $1000 insured, which we 
 have increased to $1.50." This opinion is generally con- 
 
 Fio. 22. Flook Plan of Whole Milk Creamery. 
 
 curred in, and with proper management has everything 
 to commend it. Thus Secretary F. A. Allen, of the 
 Androscoggin Patrons' Mutual, one of the Maine com- 
 panies with one and a half millions of insurance, testi- 
 fies : "Our cash premium should be ten per cent instead 
 of three, as at present, thus saving the expense of a large 
 number of assessments!"
 
 COOPERATIVE FIRE INSURANCE. 173 
 
 On the other hand, D. Foglesonger, of the Newbury 
 (Pa.) company, says : "We don't keep a large amount 
 in the treasury to tempt the ofldcers, a mistake which I 
 think some mutuals have made. We have always been 
 able to pay all looses promptly. Perhaps our only mis- 
 take was in paying some losses a little too promptly, and 
 not investigating more into the motives of the parties 
 wanting insurance." The most serious mistake of the 
 Lancaster County (Pa.) company, in the opinion of Sec- 
 retary A. V. Newphes, was in 1878-9, when "our com- 
 pany had a debt and heavy losses, and a large number 
 of insured were permitted to withdraw without paying 
 any part of the debt or losses during the life of their 
 policies, whereby the whole burden was cast on those 
 who remained loyal to the company." 
 
 Other Experiences. There is much to be gained 
 by all present or wonld-be farm mutuals in profiting by 
 the experience thus freely given. But it should be 
 stated that this includes the most serious mistakes re- 
 ported. Under this heading the following is a fair sam- 
 ple of many reports : 
 
 L. S. Lichtenwollner, Secretary Farmers' Union Mu- 
 tual, Trexlertown, Pa. : "We seldom sue the few mem- 
 bers who are in arrears. Generally they have five-year 
 policies, and we cancel them when their policies have 
 expired. We now have insured $15,343,640." 
 
 1. P. Sterret, Secretary of the Warren (Me.) Farmers' 
 Mutual : " The only mistake we made was in not organ- 
 izing, twenty years sooner. Our experience shows that 
 town mutuals are very favorable for the insured, while 
 the experience of mutuals extending over large territo- 
 ries has been unfavorable. It has cost less than one- 
 fourth as much in our company as in stock companies. 
 Our company being small by reason of its limited terri- 
 tory the amount taken on any single risk is also small, 
 not exceeding twelve hundred dollars, yet we liave iiloS, 
 597 on farm property in this small town alone."
 
 174 HOW TO COOPERATE. 
 
 A. J. Sweezy, Winnebago County, 111. : "We have 
 never had any litigation, and very few have been dilatory 
 in paying assessments, and such usually drop out when 
 their insurance expires. Our members feel a mutual 
 interest and usually pay assessments as promptly as they 
 would any legal notes. The average cost of insurance 
 for the past ten years has been $1.35 per $1,000 annu- 
 ally, against $2.50 and more in stock companies." 
 
 J. Schmelzer, Olmstead County, Minn. : ''Our com- 
 pany is confined to Germans. It was started in 1882, in 
 the face of great opposition by the agents of stock com- 
 panies, who told all sorts of lies about us. Not a few 
 believed those agents and mistrusted their real friends, 
 but in the third year they began to see their folly and 
 came in with us, so that we now have $660,000 of insur- 
 ance, of which nearly $200,000 was written last year. 
 Over four hundred members paid their first assessment 
 this year, and the cost of insurance for six years has been 
 only four dollars and twenty-five cents, or an average of 
 seventy-one cents per annum for one thousand dollars." 
 
 How to Organize a Cooperative Fire Insurance 
 Company. In the first place, two or three individuals 
 should thoroughly interest themselves in the subject. 
 Send to your State Commissioner of Insurance for the 
 insurance laws and reports, also to some of the coopera- 
 tive fire insurance companies mentioned in the Appen- 
 dix, and obtain their reports, by-laws, forms of policy, 
 etc. After studying these, ask for precise information 
 desired on any further points from those who have had 
 successful experience in this line. In writing for this 
 purpose, always inclose stamps. 
 
 A little effort in this way Avill post one up quite thor- 
 oughly on the subject, when the matter should be talked 
 up among the people to be interested, after which a 
 meeting may be called and the matter laid before them 
 in a simple and direct way that they can understand.
 
 COOPERATIVE FIRE INSURANCE. 175 
 
 To this end the preceding chapters or a summary of 
 them may he read to the meeting. This meeting should 
 appoint one or two committees composed of the best 
 informed members to report a plan of organization 
 and management at an adjourned meeting, the date of 
 which should be positively fixed so as to avoid delay and 
 give people confidence that the affair means business. 
 This committee should obtain from the State Commis- 
 sioner of Insurance full particulars about the State laws 
 and advice about the best method of procedure; and 
 may correspond to advantage with other cooperatives 
 enrolled in the Appendix. 
 
 After the preliminaries of a plan have been decided 
 upon, a lawyer should be employed to frame the details 
 legally. Great care should be exercised in this respect 
 to start right. Comply not only with the law, but take 
 advantage of the experience of other companies as re- 
 lated in the preceding pages and in their reports. The 
 company must be a legally organized corporation, estab- 
 lished upon a thoroughly business basis, not a mere 
 voluntary association without any standing in the eye of 
 the law. Adhere strictly to this principle or make no 
 attempt. Many a mutual has failed disastrously because, 
 after doing business for years, it was found that the 
 charter and by-laws were so loosely drawn that members 
 could not be compelled to pay assessments. The charter 
 and by-laws will vary according to the legal requirements 
 of the different States and local necessities. An excel- 
 lent form of by-laws is tluit employed by the Michigan 
 farm mutuals, which is given in tiie Appendix. 
 
 Confidence Must be Established at the start and 
 constantly maintained, or faihire will surely result. 
 Confidence cannot be had unless every member appre- 
 ciates that insurance involves an inviolable legal contract 
 between the member and the company ; and a moral 
 contract of self interest between all members to help
 
 176 HOW TO COOPERATE. 
 
 each other by care to reduce danger from fire to a mini- 
 mum. Where the State laws require a large amount of 
 risks or considerable paid-up capital before a mutual or 
 cooperative company can do business, the work of organ- 
 izing under such laws is more complex. But where 
 town districts or county mutuals are permitted, as is the 
 case in many States, it is a very simple matter. There 
 are many advantages in confining operations to a reason- 
 ably small district, where the insured are personally ac- 
 quainted, thus avoiding fraud and securing economy, 
 but the territory must be large enough to give sufl&cient 
 insurance to make the risk light. 
 
 Officers and Meetings. Having adopted the by- 
 laws and secured a charter in compliance with the law, 
 it would still be easy to go wrong by choosing inefficient 
 officers. Eesponsible men in whom the public have con- 
 fidence should be selected, not necessarily highly edu- 
 cated, but men of sou;nd Judgment and a reputation for 
 integrity as well as intelligence. The secretary is the 
 most important officer, as he keeps all the records, does 
 all the correspondence, and all the money passes through 
 his hands. He should be a man (or woman) of educa- 
 tion, able to keep the books and accounts accurately, 
 thoroughly honest and heartily interested in cooperative 
 insurance. Such men can be found in every locality. 
 
 Frequent meetings of the directors and officers are 
 advised, with full and explicit reports to members, so 
 that every one may know just where every dollar goes to. 
 The cooperative principle of giving every member full 
 opportunity to know the entire business of the company 
 should be heartily recognized. In this and other ways 
 the insured will maintain their direct personal interest, 
 which will lead them to constantly recognize that they 
 themselves are the company. Prompt adjustment of 
 losses, especially of small losses, does much to maintain 
 confidence. The inspectors and adjusters should be
 
 COOPERATIVE EIRE INSURAXCE. 177 
 
 prompt in all such matters. But members must be 
 equally prompt when assessments are called for. 
 
 With good management there will be no delay in col- 
 lecting assessments, and they will be very infrequent. 
 Never borrow money to pay losses. Cooperative insur- 
 ance, like cooperative distribution, must be managed on 
 a strictly cash basis. Several disastrous failures in farm 
 mutuals, especially in the West, have been due to bor- 
 rowing money to pay losses one year, hoping that next 
 year's income, without any series of fires, would even 
 the thing up and make an assessment unnecessary. 
 
 Live Stock Insurance. The difficulty of identify- 
 ing insured stock, and thus preventing fraud, is such 
 that cooperation is much more complicated on such 
 insurance than on real property. The addresses of a 
 few mutuals that make a specialty of insuring live stock 
 are given in the Appendix, from whom more particulars 
 can doubtless be obtained. 
 
 Life Insurance is practiced more or less cooperatively 
 to such an extent by existing fraternal and mutual socie- 
 ties, and is so much more complicated and governed by 
 special laws that no attempt is here made to treat it ivi 
 detail. 
 
 12
 
 CHAPTER VIII. 
 
 COOPERATIVE BANKING. 
 
 Building and Loan Associations or Cobperative 
 Banks. These have met with tremendous success in 
 the United States. Originating in Philadelphia, they 
 have spread to most of the larger cities of the Northern 
 and Western States. They have quite largely supplanted 
 or preceded the old-fashioned savings bank. In Penn- 
 sylvania the people have saved upward of $60,000,000 
 through their 1,000 cooperative banks, and miles of Phil- 
 adelphia streets have been built up by the same agency. 
 Nearly 100,000 homes in that city have been paid for 
 through this system. Chicago has many such banks, 
 with over $15,000,000 of deposits. Massachusetts took 
 up the idea only a dozen years ago, but has over 100 
 cooperative banks already, and about a dozen are being 
 organized in that State annually. New Jersey has 250 
 cooperative banks, with $23,500,000 of savings up to 1891. 
 Michigan has 200. In New York 375 out of 400 asso- 
 ciations reported to the State banking department 105,- 
 000 members, with loans of over $20,000,000, while the 
 face value of the shares subscribed for is over ten times 
 as much, and their receipts in 1890 were over $14,- 
 600,000. New York, Ohio and Pennsylvania at least 
 each have a State league of cooperative banks which 
 have been instrumental in securing wise laws to protect 
 cooperators in saving and to foster their interests, espe- 
 cially by exempting from taxation the shares and loans 
 of such banks or building societies. Similar leagues 
 are organizing in other States. 
 
 178
 
 COOPEBATIVE BAN^KING. 179 
 
 The growth of the local cooperative bank is best shown 
 by the fact that the authorized capital of an incomplete 
 list of such enterprises, started between April 1, 1890, 
 and May 1, 1891, foots up the enormous sum of $500,- 
 000,000. The average authorized capital being over 
 $1,000,000 shows that about 400 cooperative banks are 
 being organized annually in the United States. This 
 capital is usually made up of shares of $200 each, paya- 
 ble one dollar a month, so that but a fraction of the 
 authorized capital (only one two-hundredth) has to be 
 paid in at the start. 
 
 Possibilities of Cooperative Savings. ''Brad- 
 street's" is authority for the statement that the aggre- 
 gate resources of tlie savings associations of the country 
 are nearly sixty per cent of the entire assets of all State, 
 saving, loan and trust companies and private banks and 
 bankers from which reports were received in 1890. 
 Their deposits were less than ten per cent below those 
 of the national banks, and were more than twice as large 
 as the total capital stock of the national banks. With 
 this true now, when ordinary savings banks are practi- 
 cally confined to a small section of the country (only 
 037 purely mutual savings banks being represented, of 
 which all but eleven are in the 'New England and Mid- 
 dle States), what will happen when the new form of 
 cooperative savings bank gets its growth throughout 
 tlie Union ? 
 
 Because so easily organized and so inexpensively man- 
 aged, the cooi)erative bank is specially adapted to com- 
 munities not sufficiently peopled to support a ''regular" 
 bank. As W. H. Durock says : " One who enters an 
 association, having for its mission the systematic sav- 
 ing of so much money periodically, enters a confraternity 
 in which he stands on an equality with every other man ; 
 he is not a client of the institution, he is part of it ; he 
 has a voice and a vote, and is expected to use both when
 
 180 HOW TO COOPERATE. 
 
 occasion requires; he shares in the whole profits; and 
 the manner in which those profits shall be divided, the 
 majority may determine from time to time ; as economi- 
 cal management aids profits very appreciably, he helps 
 in the work and keeps expenses down ; he takes a pride 
 in his own association and brings it to the notice of 
 others ; he may not get his money out as promptly as he 
 would in a bank, but he never suffers any by the neces- 
 sary delay." 
 
 How the New System Operates The building 
 and loan association, or cooperative bank, is nothing 
 more or less than a savings bank. It differs from the 
 institution ordinarily known as such in the technical 
 details of the borrowing and lending of money. Its 
 depositors agree to make their deposits regularly and by 
 what is called a purchase of shares, indicating how large 
 they mean these deposits to be. The bank lends only 
 to depositors lends to the highest bidder, provided the 
 security is good, and secures by the share system repay- 
 ment on the installment plan. This makes it both easy 
 and compulsory for the borrower to pay up his loan. 
 The avowed purpose of these associations is to aid home 
 building. They could not well turn their investments 
 in other directions without losing much of that which 
 has deservedly attracted the popular fancy. Naturally 
 their success is greater in the Central and Western 
 States, where the building of homes is more active than 
 in the older States. 
 
 Even if the regular savings banks should adopt the 
 cooperative plan of receiving deposits and making' loans, 
 the cooperative bank would continue its superiority. It 
 is conducted in the main by people who give it their 
 time for nothing, or ratber, without money return. 
 The bank meets but once a month in some room or hall, 
 where settees and a small safe are all the necessary furni- 
 ture, and therefore saves in the matter of rent and fix-
 
 COOPERATIVE BANKIKQ. 181 
 
 tures. It has a decided hold on its depositors in that 
 they really control and manage it. The people feel that 
 the ordinary savings bank is apart from and above them ; 
 they suspect its directors are making something out of 
 it. There is more democracy in the cooperative bank, 
 and even "Bradstreet's," the representative of the pre- 
 vailing commercial system, admits that, *'in these re- 
 spects the newer institution is more admirable than the 
 savings bank, and there have been few instances where 
 the trust thus put in the people by each other has been 
 abused." 
 
 The Economy of Cobperation. It will be seen 
 from the two paragraphs immediately preceding that a 
 cooperative bank can be managed with exceeding great 
 economy. The total amount paid for salaries, rent and 
 other expenses by fifty-two local associations in New 
 York was 1.8 per cent of the receipts, some doing the 
 business at an expense of only one-half of one per cent 
 of the income. In New Jersey the expenses of 242 asso- 
 ciations for the year ended June 30, 1891, averaged $384 
 each, of which $294 went to pay for salaried officials. 
 This is a remarkably good showing for economical man- 
 agement, since the bnsiness transactions for the year 
 averaged nearly 1400,000 per bank and the net assets 
 averaged nearly $100,000 per bank. In no other system 
 of handling or investing money are the expenses reduced 
 to so small a sum. 
 
 The Bank Feature of Cooperative Societies. 
 It will be seen that the cooperative bank or savings and 
 building association has no functions that cannot be 
 equally as well carried out by the cooperative society on 
 the Rochdale plan. Iti fact, many of the English socie- 
 ties now have building departments, which are coi - 
 ducted in the manner set forth in the rules of the Koch- 
 dale society as printed in the Appendix. Until a coope- 
 rative store or society builds up a large business, however.
 
 182 HOW TO CO6PERATE. 
 
 it can doubtless employ the savings of its members more 
 profitably in its own business. The more the members 
 invest their savings in the society, the greater the capi- 
 tal and the more it can do. The cooperative store is 
 thus, in one sense, the best kind of a savings bank. 
 Unless cooperators fully understand the matter, it would 
 be best to operate the building association independently 
 of the store, though the two can be readily united where 
 State laws or a special charter permit. 
 
 The National Associations not Indorsed. These 
 cooperative banks should not be confounded with the 
 so-called ''national" building and savings fund associa- 
 tions. The latter we do not recommend, as they re- 
 quire a great number of agents, and their expenses are 
 more than one-fourth of their income. In some notori- 
 ous instances, the greater part of the receipts of certain 
 "nationals" have been absorbed in salaries for the pro- 
 moters, and what money was left was loaned to the same 
 parties or their friends, who failed to pay and tbe con- 
 cern "failed." The cooperative bank should be a local 
 affair managed by members directly, and in this way its 
 expenses need not be more than from one to two per 
 cent of the income, or even less. The expenses should 
 be met by a small annual due, instead of coming out of 
 the regular payments. 
 
 Not wishing to unduly prejudice the reader against 
 "nationals," of which there are now (June, 1891) 200 
 in the United States, we add the argument made for 
 them by their organ the National Building and Loan 
 Herald : " The primary idea of the national association 
 is to utilize the surplus of one section, where interest 
 rates are low, to build up another section where money 
 is scarce and interest rates correspondingly high. The 
 local association might do this if it would employ agents 
 to sell its stock, but the locals have not as yet shown 
 that they possess the necessary meed of enterprise.
 
 co6peeative banking. 183 
 
 Many locals sell a good deal of their stock abroad, but 
 they make their loans at home where they can hold their 
 thumbs on them and see that the realty does not fluctu- 
 ate in yalue or get up in the night and slide off. The 
 main advantage of a local over a national is the oppor- 
 tunity to 'watch the risk.' In a national association 
 the risks are distributed so that no great loss could occur 
 from any other contingency than the total destruction 
 of the Western Hemisphere. It has been persistently 
 urged that the conditions which have contributed to the 
 success of the local associations furnish no criterion of 
 similar success for the nationals. This is granted in 
 advance. The national movement meets dissimilar con- 
 ditions and must carve out its own good or ill fortune ; 
 but there is no reason why the nationals should not 
 profit by the experience of the local associations, and 
 avoid their blunders as well as emulate their successes. 
 Experience has demonstrated the vulnerable points of 
 attack to be three in number : 1, The opportunity for 
 irresponsible and unprincipled men to engage in the 
 business ; 2, losses incurred from loans made on insuffi- 
 cient security or from depreciated values ; 3, the expen- 
 siveness of the plan as a permanent obstacle to national 
 success." The Herald then proceeds to answer these 
 objections to its own satisfaction. 
 
 Another Strong Point for cooperative banks over 
 the old line savings institution lies in the fact that the 
 money thus accumulated is employed by the working 
 people themselves to advance their own interests, either 
 in home building or productive effort of some kind. 
 On the other hand, the deposits made by the working 
 people in the old line savings banks are very largely 
 borrowed by business men and corporations and used to 
 increase the business and profits of capital. In this way 
 the working people furnish money to the capitalist 
 instead of utilizing their savings themselves.
 
 184 HOW TO co5peratb. 
 
 The Rent Pays for the Place. We by no means 
 object to the old line savings bank, nor to this use of its 
 funds, which has done much to build up the industries 
 and manufactures of our Eastern States. But we re- 
 gard the cooperative bank as an advanced step in ena- 
 bling workers, in city or country, to more directly bene- 
 fit by their own savings. For farmers, as well as city 
 residents, can utilize the cooperative bank principle to 
 save money or pay their debts. The payments for shares 
 and interest can be made quarterly or semi-annually, to 
 adapt them to the farmers' most convenient time for 
 making payments. The sums paid will be easy to meet ; 
 the principal is whittled down with each payment, and 
 the loan paid ofiE in ten or twelve years, according to the 
 rate of interest received. 
 
 By this system, the success of which is assured, the 
 rent of a house or farm pays for it in ten or a dozen 
 years. This system enables the poor man to own his 
 house or farm instead of renting it. By the old system 
 the many pay rent for the benefit of the few ; through 
 the building and loan association the many combine 
 together to put the rents into their own pockets, and 
 thus wipe out their indebtedness in rotation. 
 
 How to Start a Bank. As in organizing any othej 
 cooperative enterprise, a few people should first become 
 thoroughly acquainted with the whole subject of coop- 
 erative banks or loan associations. This special phase of 
 associated effort is treated very completely in Mr. Dex- 
 ter's manual, and the other literature referred to in the 
 Appendix, which should be consulted. Correspond also 
 with some of the cooperative banks mentioned in the 
 Appendix. Carefully look up the law in your own 
 State as to such institutions, changing the model by-laws 
 given below to comply with such laws. 
 
 Here, as in other cooperative enterprises, take care 
 to start as a legally incorporated society or corporation.
 
 COftPEBATIVB BAIS^KING. 186 
 
 This is specially advisable with so important a matter 
 as a bank or building association. After having got a 
 pretty thorough insight into the scope and operation of 
 the cooperative bank, the matter can be talked up in a 
 quiet way among the most thrifty and substantial work- 
 ing men, including some of successful business experience 
 and established standing. When a few such men have 
 once got interested, it will be easy to get out a good 
 attendance to a meeting to discuss the matter, appoint 
 committees to make further investigations and report a 
 definite plan of organization. The same rules as to 
 character and efficiency of officers hold true with banks 
 as with insurance companies or cooperative stores. 
 
 Model By-Laws. The following are the by-laws of 
 the Berean cooperative bank and building and loan asso- 
 ciation of Philadelphia, Pa. They were prepared by a 
 committee of experts and are pronounced a model in the 
 State where cooperative banks have been longest estab- 
 lished. They contain more than is necessary, perhaps, 
 and must be varied to suit the laws of other States, but 
 fully explain the business of these societies : 
 
 Section 1. Name and Object. The name of this association shall be 
 called "Tlie Berean Building and Loan Association," and shall have 
 for its object the saving of funds from monthly payments of the mem- 
 bers, and the investment thereof, or to be advanced or loaned to mem- 
 bers desiring to borrow, to the end that the profits arising from the 
 business tluis transacted shall, with tlie monthly payments, largely 
 reduce the number of months required to make each share worth its 
 par value of two hundred dollars. 
 
 Sec. 2. Stockholders and Capital Stock. The capital stock of this 
 association shall be one million dollars, and consist of five thousand 
 shares, of the par value of two hundred dollars, to be issued in one or 
 more series, as the board of directors may determine. 
 
 Sec. 3. Stockholders of the association shall be citizens of the United 
 States. Minors may hold shares by trustees, and women in their own 
 right. 
 
 Section 4. Every stockholder or trustee shall sign these laws, by 
 which he or she Is obliged to the prompt payment of the monthly dues, 
 premiums, interest and fines, and to the fulfilment of all obligations 
 Imposed. 
 
 Sec. 5. Working Expenses. Each and every stockholder shall p.ay 
 for every share of this association subscribed for, twenty-five cents
 
 186 HOW TO COOPEllATE. 
 
 entrance fee, and shall also pay at each annual meeting such sum (not 
 excet'dlng twenty-five cents per share) iis shall be determined by the 
 board of directors, to pay tlie working expenses of the association. 
 
 Sec. 6. Monthly /><es. Each stockholder, for each share of stock by 
 him or her held, shall pay one dollar per month in current funds, until 
 the series with which he or she is connected shall have accumulated 
 real assets sufficient to divide to each share the sum of two hundred 
 dollars or its equivalent, based on a division of the profits, giving each 
 dollar invested a like per cent per annum for the time of investment. 
 
 Sec. 7. Fines. Xx\y stockholder neglecting or refusing to pay his or 
 her monthly dues, interest or premiums, as the same shall become 
 due, shall pay the additional sum of two cents monthly on each dollar 
 remaining unpaid. 
 
 Sec. 8. Withdrawals. Stockholders who have not received loans 
 m.-iy withdraw from the association after thirty days' notice given at 
 a monthly meeting to the board of directors. They shall receive the 
 amount actually paid in as dues, less all fines and other charges, and 
 after the expiration of one year from the issuing of the series in which 
 the stock is held they shall be entitled to the amount of their payments 
 as dues, with such part of the profits as the directoi's may allow. Xot 
 more than one-half of the funds in the treasury shall be used to refund 
 money on withdrawn shares, except by special order of the board of 
 directors. 
 
 Sec. 9. Loans (amount per share). Each and every stocikholder shall 
 be entitled to a loan of two hundred dollars for each and every share 
 which he or she may possess. 
 
 See. 10. If the funds in the treasury admit of a loan, the money shall 
 be offered at a stated meeting, and the stockholder who offers the 
 highest premium shall receive the loan. 
 
 Sec. 11. Premiums (to be paid monthly). The premium in all cases 
 for priority of loan shall be the number of cents per share each month 
 which the borrowing stockholder agrees to pay Into the association, 
 together with the regular dues, interest, etc. ; and all bidding shall be 
 done openly at tlxe stated meetings of the board of directors. 
 
 Sec. 12. Stock Loans. Any member may have an advance or loan, 
 without real estate security, to the amount he or she shall have actu- 
 ally paid in as dues to the association. 
 
 Sec. 13. Collateral Security. For each advance or loan of two hun- 
 dred dollars per share to a member, at least one share of stock shall 
 be assigned to the a.s.sociation as collateral security. 
 
 Sec. 14. Limit to Bidding. The successful bidder may take the loan 
 for one or more shares (not exceeding ten shares at one bid) at the 
 same premium, but he may continue bidding if there be more money 
 to sell. If there be not sufficient funds in the treasury, the balance 
 may be supplied from the receipts of subsequent meetings. All suc- 
 cessful bidders shall immediately submit a full description of the 
 property offered as security, and such other information as shall be 
 required, and shall sectire the repayment of the said loan, with legal 
 Interest, by satisfactory bond and mortgage upon real estate in the 
 city of Philadelphia, and with a policy of insurance for an approved 
 amount. 
 
 Sec. 16. Interest and Premlvms to he Paid Monthly. The interest and 
 premiums on all loans shall be paid monthly from the time of bidding 
 for the same.
 
 COOPERATIVE BANKING. 
 
 187
 
 188 HOW TO COOPEKATE. 
 
 Sec. 16. Time Allowed to Furish Spcuritij.Iu tle event of a success- 
 ful bidder failing to oiler satisfactory security for the space of one 
 month from the date of purcha.se, tlie loan shall revert to the associa- 
 tion, and he or she sliall be charged with one month's interest on the 
 loan, and all expenses attending the examination of titles, searches 
 and writings. 
 
 Sec. 17. rover to Compel Payments. If the dues, interest, fines, or 
 monthly premiums, or either, which the stockholders agree to pay at 
 the time of purchasing money are suffered to remain unpaid more 
 than six months, the directors may compel payment of principal, 
 interest, fines, and premiums by instituting proceedings on the bond 
 and mortgage, or otiierwise, according to law. 
 
 Sec. 18. Forfeited Shares. The shartss of any stockholder or trustee 
 who shall neglect or refuse to pay his or her monthly dues or fines for 
 the period of six months, may be declared forfeited by the board of 
 directors, when the shares shall revert to the association. If such 
 member has not received a loan on the shares, he shall be entitled to 
 receive out of the first unappropriated money in the treasury the 
 amount of dues paid into the association, in addition to the profit 
 allowed withdrawing shares of the same series, after deducting all 
 fines and charges on the same. 
 
 See. 19. Chatu/e of Securities. In case of a stockholder wishing to 
 change the security offered for his or her loan, he or she may do so 
 without being compelled to repay the money to the association, pro- 
 viding the directors approve of the change. 
 
 Sec. 20. Oiie Series Kept Open. the directors shall keep one series 
 open at all times for borrowing members, and in case a borrower 
 requires a loan on more shares than were owned by him or her at the 
 time of bidding, the requisite number of shares shall be furnished 
 him or her, the borrower paying all back dues and assessments on 
 such shares. 
 
 Sec. 21. Sales and Snhsfitution of Securities. Should any stockholder 
 desire to sell a property on which the association has loaned money, 
 transferring to the purchaser his right, title and interest in the loan 
 granted on his shares, he shall be at liberty to do so, if he shall first 
 obtain the consent of the directors to such sale or transfer. No such 
 sale or transfer shall be made until all dues, interest and fines to 
 which the association is then entitled, shall have been paid ; and the 
 conveyance having been duly executed by the solicitor of the associa- 
 tion, the purchaser of the property shall thenceforth become a mem- 
 ber of the association, with all the rights, privileges and liabilities in 
 respect to such shares of the member to whom the loan was first 
 granted. 
 
 Sec. 22. Purchase of Property. The board of directors shall have 
 power to purchase at any sheriff's or other judicial sale, or at any 
 sale, public or private, any real estate or property upon which the 
 a.ssociation may have or hold mortgage, judgment, lien or other 
 incumbrance, or ground rent, when the interests of the association 
 require It. They also shall have power to sell, convey, lease or mort- 
 gage at plea.sure. to any person or persons whatsoever any property of 
 which the association may become possessed. 
 
 Sec. 23. When Mortgaxjes May he Satisfied. \>' hen any sale shall take 
 place of a property mortgaged to the association the board of directors
 
 OOOPEEATIVE BANKING. 180 
 
 shall require the payment of all dues, interest, fines and premiums 
 and charges owing to the association at the time of said sale, before 
 satisfying the bond and mortgage against the property. 
 
 Sec. 24. Property Committee Must Approve. iio security shall be* 
 deemed sufficient until it has been examined by the property commit- 
 tee of directors and approved by a quorum of tlie board of directors. 
 
 Sec. 25. No Loans Outside of Philadelphia. No loans shall be made 
 on property outside of the city and county of Philadelphia. 
 
 Sec. 26. Bate of Interest. Tlie interest on loans shall be paid monthly 
 at the rate of one-half of one per cent per month. 
 
 Sec. 27. Unproductive Funds. In case the funds of the association 
 should remain unproductive for one montli the board of directors may 
 make investments of the same in real estate, United States bonds or 
 otherwise : Provided, however, that no such investment shall be 
 made without the consent of at least two-thirds of the whole board of 
 directors first obtained and expressed in writing. 
 
 Sec. 28. Salary and JExpenses. The salary of the secretary shall be 
 fixed by the board of directors from time to time and paid monthly, 
 and all other expenses for books, printing, etc., can only be made with 
 the approval of the board of directors. 
 
 Sec. 29. Loans may be liepaid in ZMfcZete. Stockholders who have 
 received one or more loans of $200 of this association can refund one 
 or more of the same at any time. 
 
 Sec. 30. Shares Pledged for Security. When a loan is repaid the 
 share or shares originally transferred to the association as collateral 
 security may be transferred to said stockholder, or may be witlidrawn 
 in the same manner as free shares. 
 
 Sec. 31. Deceased Members' Stock. Upon the death of a stockholder, 
 his or her legal representatives may assume the future payments on 
 the stock, or may withdraw the same as other shares are withdrawn. 
 
 Sec. 32. Reissue of Shares. New shares of stock may be issued in 
 lieu of all shares withdrawn, forfeited, or which have reverted to the 
 association. 
 
 Sec. 33. Involuntary With dratvals. -The directors, whenever it shall 
 appear necessary to make a reduction of the shares not loaned upon 
 in any series as it approaches maturity, may by a two-third vote com- 
 pel the redemption of shares in the series ; but such redemption shall 
 be made by calling in from eacli shareholder in tlie series, as may be 
 necessai-y, pro-rated upon the number he or she may hold. 
 
 See. 34. Officers and their Dtdies.-The officers of this association 
 shall be a president, vice-president, treasurer, secretary, solicitor and 
 thirteen directors, who must all be stockholders, and wlio shall be 
 elected at the annual meetings. In case of a vacancy occurring in any 
 of these offices by death, resignation or otherwise, such offices so vaca- 
 ted shall be filled by the board of directors until the next election. 
 All the officers shall continue in office until their successors are duly 
 elected. 
 
 Sec. 35. President. It shall be the duty of the president to preside 
 at the meetings of the association and of tlic board of directors, and 
 to sign all orders on the treasurer for the payment of money, when 
 ordered by the board of directors, and to perform all other duties 
 appertaining to his office.
 
 190 HOW TO COOPEBATE. 
 
 Sec. 86. Vice-President. It shall be the duty of the vice-president to 
 assist the president in the discharge of his duties, and officiate for him 
 in his absence. 
 
 Sec. 37. Treasurer. It shall be the duty of the treasurer to receive 
 all moneys paid into the association, and give receipts for the same 
 to the secretary; to pay all orders drawn upon the treasurer by order 
 of the board of directors, when signed by the president and attested 
 by the secretary, and none other. He shall, for the faithful perform- 
 ance of his duty, give mortgage bond or other security to the satisfac- 
 tion of the board of directors, and shall renew the same when required 
 to do so by the board. He shall receive and hold in trust for the asso- 
 ciation all bonds, mortgages, and policies of insurance, etc., on all 
 property on which money is loaned by the association, except securi- 
 ties given by himself, which shall be held by the president. It shall 
 be his duty, when empowered by the board of directors, to give release 
 and acquittance for all sums of money which shall be paid to the 
 association upon any bond, bill, note, mortgage, or other security, and, 
 if necessary, acknowledge satisfaction of the same on record; and he 
 shall, at the expiration of his term of service, deliver over to his suc- 
 cessor in office all moneys, books, papers, etc., belonging to the asso- 
 ciation that may be in his possession. 
 
 Sec. 38. Secretary. It shall be the duty of the secretary to keep 
 accurate minutes of tlie proceedings of the association and of the 
 board of directors, and record the same In a book or books to be kept 
 for that purpose. He shall keep accurate accounts with all the stock- 
 holders; attest all orders drawn on the treasurer for the payment of 
 money when so ordered by the board of directors and signed by the 
 president. He shall notify the stockholders of the annual and special 
 meetings, and also notify the directors of their monthly meetings, at 
 the expense of the association. He shall have in charge all the books 
 and papers (except bonds, mortgages, and policies of insurance) be- 
 longing to tlie association, and deliver the same to his successor in 
 office at least ten days before the next monthly meeting. He shall be 
 prepared at all times to Inform stockholders of the state of the finan- 
 cial affairs of the association, and at the yearly meetings furnish a 
 detailed statement of the finances. He shall keep a record of all loans 
 made by the association upon property where there is a prior incum- 
 brance, and require members receiving such loans to produce the 
 receipts for the Interest on such piior Incumbrances every six months, 
 and within thirty days after such Interest may be due, and shall notify 
 the board of directors of any default on the part of the members 
 thereof. He shall receive as compensation for his services such sums, 
 payable monthly, as the board of directors may deem proper. 
 
 Sec. 39. Board of Directors. The directors, together with the presi- 
 dent, vice-president, secretary, solicitor and treasurer shall form a 
 board of directors. It shall be their duty to meet statedly on the 
 fourth Thursday of each and every month, at such places as they or a 
 majority of them shall appoint, for the purpose of receiving from the 
 stockholders their monthly diies, interest, premiums and fines, and to 
 pay the same int<^) tlie treasury; loan out the funds; see to their safe 
 investment; and attend to the financial affairs of the association gen- 
 erally. The directors shall receive no compensation for their services. 
 Seven members of the board shall constitute a quorum for the trans-
 
 COOPERATIVE BANKING. 191 
 
 action of business. They shall make all laws for their own govern- 
 ment not inconsistent with the charter and by-laws. They may 
 appoint a competent conveyancer for the association, whose term of 
 service shall be at the pleasure of the board. 
 
 Sec. 40. Conveyancer. Tlie conveyancer shall examine all title pa- 
 pers, and procure the necessary searches for property offered to the 
 association as security for money loaned or otherwise, and certify the 
 result in writing. He shall prepare all bonds, mortgages, agreements, 
 and other writings of a legal nature to be given or taken by the asso- 
 ciation, and shall be entitled to receive from the party dealing with 
 the association the usual customary compensation. All disputes as to 
 the amount of his charges and disbursements shall be settled by the 
 board of directors. It shall also be the duty of this officer to examine 
 tlie descriptions of the properties advertised to be sold by the .sheriff, 
 and if there be any against which the association has a claim, to report 
 the same to the board of directors immediately. He shall also be 
 required to attend the monthly meetings of the board of directors. 
 
 Sec. 41. Elections. All the elections of stockholders shall be by bal- 
 lot. The polls shall be open from 8 to 9.30 p. m. 
 
 Sec. 42. Right to Vole. Each stockholder who is personally present 
 at an election has the right to cast one vote, regardless of the number 
 of shares owned by said stockholder. Xo member shall be entitled to 
 vote who has not been a stockholder at least one month. 
 
 Sec. 43. .^Mdi^ors. There shall be elected annually from among the 
 stockholders (and not members of the board of directors), three audi- 
 tors, to perform the duties usually devolving upon such officers, and 
 to serve during the ensuing year. The directors shall have power to 
 reward the atiditors for their service. 
 
 Sec. 44. Annual Meetintjs. The annual meetings of the stockholders 
 shall be held on the fourth Tliursday of Febraary, in each and every 
 year, at such place as the board of directors may designate. 
 
 Sec. 45. Stated Meetinf/s. Stated monthly meetings of the board of 
 directors shall be held on the fourth Thursday of each month, at 8 
 o'clock p. m., for the purpose of receiving from stockholders the 
 moneys due the association, loan the money in the treasury, and trans- 
 act all other necessary business relating to the association. These 
 meetings shall be open to the stockholders, and the minutes of the 
 proceedings of the board of directors shall be open to their inspectit)n. 
 
 Sec. 46. Notice of Meetimfs. Notice of the annual and special meet- 
 ings of stockholders shall be published by the secretary in at least two 
 of the daily papers of the city of Philadelphia. Special meetings 
 shall be at the written request of ten members, stating the time, jilaoe 
 and object of such meeting. No business shall be transacted at special 
 meetings, except tnat for which the meeting was called. Fifteen 
 members shall constitute a quorum of a meeting of stockholders. 
 
 Sec. 47. Nominations. At the stated meeting in Jainiary of ea<!li 
 year nominations for officers of the association shall be made; and at 
 the election to be held on the succeo<ling February, none but persons 
 nominated at the said January meeting shall be elig'ble for election. 
 and the candidates receiving the highest inimber of votes polled shall 
 be declared elected. 
 
 Sec. 48. Amendments. Theae laws may be altered or amended at an
 
 192 HOW TO COOPERATE. 
 
 annual or special meeting of the stockholders, and only by a vote of 
 at least two-thirds of the members present; Provided, The amendment 
 or alterations sliall have been submitted in writing, and entered on 
 the minutes one month previous to action thereon. 
 
 BANKING FOK FARMERS BV FARMERS. 
 
 The Grangers' Bank of California is a conspic- 
 uous instance of what farmers can accomplish. For 
 the bank supplies a want which is to-day felt in very 
 many agricultural sections. Indeed, the necessity for 
 such a bank is quite as great in many parts of the West 
 and South as was the case in California fifteen or twenty 
 years ago. At that time exorbitant interest rates were 
 current, farmers could not secure loans on their wheat 
 or other produce, and were practically at the mercy of a 
 gang of speculators provided with abundant capital, who 
 fixed prices to suit themselves. The Grangers' bank 
 was incorporated under the State laws, under the super- 
 vision of the State banking commissioners, with head- 
 quarters at San Francisco, and an authorized capital of 
 11,000,000. Its success has been so great and the value 
 of its experience so conspicuous that we append the lead- 
 ing clause in its original prospectus of 1874 : 
 
 This bank is organized for the purpose of enabling the Patrons of 
 California to secure to themselves such advantages in obtaining money 
 for use in the agricultural portions of the State upon as favorable 
 terms as it can be obtained in the city for commercial purposes, 
 believing that the landed security of the agriculturist is equal to if 
 not better than city property as a basis of credit, and at tlie same time 
 giving people of every class an opportunity of safely and profitably 
 investing their money. 
 
 How the Bank has Progressed. Starting with 
 a few thousand dollars, the entire capital of 11,000,000 
 is now subscribed, upon which seven installments of ten 
 per cent each have been paid Stockholders, who have 
 availed themselves of the privilege of paying up in full, 
 with the reserve fund of $52,000, swell the actual capi- 
 tal to over 1800,000. How handsomely the business has 
 paid the investors will be appreciated by noting that 
 while the paid-in capital is 1763,000, the profits paid
 
 COOPERATIVE BANKING. 193 
 
 back in dividends amount to $675,000. The dividends 
 paid have ranged from ten to seven per cent, averaging 
 for the entire sixteen years eight per cent. Fully nine- 
 tenths of the stock is held by farmers and fruit- 
 growers. About this proportion is represented at the 
 annual meetings. The utmost harmony evidently pre- 
 vails, as the present directors and officers were unani- 
 mously reelected at the annual meeting in January. 
 
 Direct Loans to Farmers. The policy of finan- 
 cial assistance directly to farmers, or their accredited 
 agents, for their benefit, as stated in the original pros- 
 pectus, has been practically adhered to from the start. 
 In fact, the Grangers' bank deserves the great credit of 
 having inaugurated the system of making advances to 
 farmers on their grain in their local warehouses, a sys- 
 tem that of late years has also been applied to wine, rai- 
 sins, merchantable fruits, and general produce of an 
 imperishable nature. This system once inaugurated, 
 every bank in the State has since been obliged to adopt 
 it, so that at every wayside station and river landing, 
 where there is a properly officered warehouse, the farmer 
 can obtain a loan when his grain or other produce is 
 stored therein. This enables him to free himself of his 
 store bills and other indebtedness he may have incurred 
 up to harvest. It also places him in a position to dis- 
 pose of his produce when and how he may deem best, 
 thus rendering him independent of speculators. 
 
 Early in its career, when the Grangers' bank was mak- 
 ing its great fight against speculators, who had previ- 
 ously controlled the produce market, it assisted farmers 
 to hold their wheat until the ring was broken and prices 
 were restored. It is not too much to say that in this 
 way the bank has saved millions of dollars to the farm- 
 ers of California. 
 
 The enabling of farmers to market their crops to the 
 best advantage has not been the only benefit of the 
 13 
 
 /
 
 194 HOW TO COOPERATE. 
 
 Grangers' bank. It has reduced tlie rate of interest on 
 farmers' loans to six or nine per cent per annum, accord- 
 ing to location, amount, and risk, whereas, before the 
 Grangers' bank was established, farmers had to pay from 
 twelve to thirty-six per cent per annum for accommoda- 
 tion, and it was scarce at that. The bank has also been 
 able to materially assist in the formation of granges and 
 the organization of farmers' cooperative associations, 
 which have almost invariably prospered where properly 
 managed. Its private market reports and statistics of 
 supply, demand, prices, and rainfall are also of great 
 usefulness to its patrons. 
 
 The Losses incurred have been very trifling. What 
 losses were made were mostly in the course of general 
 business, incident to the carrying on of any banking 
 institution. Mr. Albert Montpellier, the eflScient cash- 
 ier and manager, to whom we are indebted for the accu- 
 rate and oflBcial information upon which our remarks 
 are based, adds: *'I mention this matter of losses 
 because, since the establishment of the bank, our farm- 
 ing community has gone through years of light crops 
 and unremunerative prices, yet in spite of such bad 
 years our losses have been no larger than those incident 
 to the usual run of banking business. Meanwhile we 
 have paid our stockholders, who are mostly active farm- 
 ers, $675,000 in dividends. We are satisfied with the 
 legitimacy of this business and its results." 
 
 The Principal Business of the bank is with the 
 country directly to farmers and also with cooperative 
 associations and grangers' unions which are established 
 throughout the State. The bank also does a general 
 business with country storekeepers and commission men 
 who handle country produce. Where cooperative or 
 grange stores do not exist, the bank has local agents 
 through whom farmers can get loans direct from the 
 bank. This brings the facilities of the Grangers' bank
 
 COOPERATIVE BANKING. 
 
 195 
 
 directly to the farmer, however distant he may be from 
 San Francisco. 
 
 The Problem Solved. It thus appears that the 
 Grangers' bank of California has made a practical suc- 
 cess of the system of advances to farmers. Because so 
 many members of the Farmers' Alliance are now asking 
 the government to do this work for them through loans 
 of new issues of paper money, as proposed in the much- 
 discussed agricultural sub-treasury bill and land-loan 
 proposition, we propose to explain fully the methods of 
 
 Fig. 24. Typical Seal of a Successful Farmers' Bank. 
 
 the Grangers' bank, the success of which demonstrates 
 conclusively that the farmers can do this business for 
 themselves far better than the government can ever do 
 it for them. 
 
 Mr. Montpellier's testimony on this point is worth 
 oceans of the current talk for and against the govern- 
 ment loan schemes because of his success in showing 
 how farmers themselves can solve the problem without 
 government aid. He says : *' I do not believe very much
 
 196 HOW TO COOPERATE. 
 
 in government advances to farmers. The farmers will 
 accomplish more good by acting for themselves, seeking 
 by business-like means to obtain money as cheaply as 
 they can, besides making every effort to get the most 
 money possible for their products." 
 
 On the other hand, it should be added that the Rus- 
 sian government has adopted the system of advances to 
 farmers originated by the Grangers' bank, "with results 
 satisactory to the authorities and farmers." But so far 
 as we can learn, the Russian system is based on advances 
 of existing money rather than on new issues of govern- 
 ment paper, as the sub-treasury plan proposes. The 
 management of this loan business under private auspices, 
 as by the Grangers' bank, is also much cheaper and 
 more efficient than in Russia, an autocratic nation 
 from which the independent citizens of a free republic 
 have comparatively little to learn. 
 
 How the Business is Done A State law pro- 
 vides for the issuing by warehousemen of negotiable or 
 non-negotiable receipts for produce actually stored 
 therein. This law is printed in the Appendix, in the 
 paragraph devoted to California laws bearing on corpo- 
 rations. Like statutes exist in some other States, or can 
 be secured from the Legislature. This legal basis is nec- 
 essary, but this form of credit is in most States used by 
 brokers and dealers, whereas farmers can avail them- 
 selves of it equally well. In making a loan on produce 
 the farmer first stores his produce in a warehouse and 
 takes a receipt for it, of which the following is a sample : 
 
 " No. 598. Grldley, Cal., June 11, 1891. Received on storage from Sam- 
 uel Jones for account of Tlie Grangers' Bank of California in tlie Grid- 
 ley warelionse, the following described merchandise, deliverable only 
 on return of this receipt, properly indorsed, and payment of storage at 
 the rate of twenty-five cents per ton for eacli of the first, second, and 
 third months, and free for the balance of the season ending June 1, 
 1892. This warehouse reserves the right of loading the grain at the 
 usual rate of fifteen cents per ton. All necessary resacking is at own- 
 er's expense, and dangers from fire and elements at owner's risk. 
 Description Marks S. T.; G. B'k. Number of sacks (owner's count)
 
 COOPERATIVE BANKING. 197 
 
 5,700. Weight (lbs> 798,000. Description in full fifty-seven hundred 
 sacks of wheat weighing seven hundred and ninety-eight thousand 
 pounds. 
 
 A. D. LoGAK & Co., by L. K. Vaughan, Manager." 
 
 This being indorsed by Samuel Jones is negotiable. 
 The agent of the Grangers' bank at Gridley then inves- 
 tigates to see that the above amount of wheat is in store, 
 giving a certificate to that effect as follows : 
 
 " This is to certify that I have called at the Gridley warehouse, situ- 
 ated at Gridley, Butte county, and have duly taken possession in the 
 name of the Grangers' Bank of Caiifornia, of wheat, in sacks, piled and 
 segregated in said warehouse, and described as follows: 5,700 bags 
 wheat stored by Samuel Jones, marked G. B'k, S. T. Dated at Gridley, 
 June 14, 1891. 
 
 L. Robinson, for Grangers' Bank of California." 
 
 Mr. Jones also has to insure the produce and make 
 the insurance policy payable to the Grangers' bank. 
 (1) This policy, (3) the warehouse receipt, (3) the cer- 
 tificate of possession and (4) a sample of the wheat, are 
 then sent to the bank with (5) the farmer's note, and 
 the bank sends back the money. The farmer's note is 
 in this form : 
 
 " $7,000. Gridley, Gal., June 13, 1891. On demand, after date for value 
 received, I promise to pay to the order of the Grangers' Bank of Cali- 
 fornia, at the office of the bank in San Francisco, Seven Thousand Dol- 
 lars, in gold coin of the United States, with interest in like coin from 
 date hereof, at the rate of six per cent per annum until paid. This 
 note is secured by 5,700 sacks of wheat weighing 798,000 pounds, stored 
 in A. D. Logan & Co.'s grain warehouse at Gridley, Cal., as per ware- 
 house Receipt No. 598, dated June 11, 1891, herewith appended, which 
 the Grangers' Bank or assigns do hereby agree to return to the owner 
 of said security, or order, ipon payment of the above promissory nolo, 
 interest due thereon, insurance and other legal charges. 'So. 29,201. 
 
 (Signed) SAMUEL Jones." 
 
 The Extent of this Business has now assumed very 
 large proportions. It extends to all parts of the State, 
 and the bank is regarded as the farmers' best friend. Its 
 control has been kept in their hands and its affairs 
 administered in their interests. The business shows 
 most excellent management, as nppcars from the follow- 
 ing statement of the bank's condition Dec. 31, 1890,
 
 198 
 
 HOW TO COOPERATE. 
 
 from which it will be seen that loans of the nature 
 described comprise the bulk of the transactions : 
 
 RESOURCES. 
 
 Time loans and discounts 
 
 $825,985 61 
 
 Demand loans on wheat 
 and otlier tangible secu- 
 rities 1,239,004 36 
 
 Real Estate 32,877 39 
 
 Office furniture and safes 6,750 00 
 Cash on hand 204,239 91 
 
 Total $2,308,867 27 
 
 LIABILITIES. 
 
 Capital paid up $761,890 00 
 
 Surplus fund ..$51,874 96 
 Divid'd No. 16.. 45,713 40 
 
 97,588 36 
 
 Due depositors 631,635 46 
 
 Banks and Bankers (on 
 time) 917,743 45 
 
 Total $2,308,857 27 
 
 Three years before, Dec. 31, 1877, the totals were 
 11,858,309.19. The increase proves the substantial suc- 
 cess achieved. 
 
 The Patrons' Cooperative Bank of Olathe, Kan- 
 sas, an offshoot of the successful Johnson County 
 Cooperative Association, described in Chapter IV, is a 
 similar enterprise on a much smaller scale. It confines 
 its business to the immediate locality, has light expenses, 
 pays fair dividends on capital, and has been useful in 
 reducing interest rates, and in accommodating farmers. 
 Its condition Jan. 1, 1891, was thus reported : 
 
 RESOURCES. 
 
 Loans and discounts $94,608 98 
 
 Real estate, safe, and 
 
 fixtures 8,249 10 
 
 Expenses & taxes paid 1,766 20 
 
 Overdrafts 136 19 
 
 Siglit Exc'nge.. $69,557 59 
 
 Cash on hand.. 24,570 48 94,128 07 
 
 LIABILITIES. 
 
 Capital stock subscribed 
 
 $75,000.00 of which is 
 
 paid in $ 30,000 00 
 
 Undivided profits 5,170 10 
 
 Deposits 163,718 44 
 
 Total $198,888 64 I Total $198,888 5 4 
 
 THE people's banks OR CREDIT UNIONS. 
 
 The Proper Use of Credit. Since we have so stren- 
 uously insisted upon cash dealings in cooperative socie- 
 ties, the reader will be at first surprised to find us writ- 
 ing on the employment of credit. Cash dealings and 
 the use of credit should not be confounded, however. 
 When a person buys an article, especially of a cooperative 
 society, he should pay for it in cash. This completes
 
 COOPERATIVE BANKING. 199 
 
 the transaction. Since all patrons do the same, no one 
 is unjustly burdened by helping to carry the credit or 
 bad bills of other members. But since many people do 
 not have the money to pay spot cash, it is necessary for 
 them to borrow it to make cash payments possible. By 
 so doing the person who requires credit pays the cost of 
 the accommodation, while, by the ordinary system of 
 trusting customers in stores, those who pay their bills 
 have to "carry" the bad payers. Again, if one has to 
 borrow money with which to pay his bills instead of 
 being "trusted," it will usually make him far more careful 
 and economical. By this system, moreover, the gains 
 which the heretofore " trusted " customer will make by 
 paying cash for his goods will usually more than offset 
 his expense for interest on borrowed money. 
 
 By this plan the perils of credit and its expensiveness 
 will be reduced to a minimum, especially if the system 
 upon which loans are made obliges prompt payments in 
 installments, after the plan of the building associations. 
 The ordinary wage earner and small farmer with com- 
 paratively small property has little credit upon which to 
 borrow, but if such persons unite their credit, the coope- 
 ration will not only assist them to relieve their poverty 
 but will prevent poverty. Since credit is so important 
 a factor official statistics show that nearly nine-tenths 
 of the commerce of the United States is transacted upon 
 exchanges of credit rather than payment of actual money 
 it is vastly important that the common people should 
 unite to enjoy its benefits. Because so many people 
 have abused credit, and because it is at present beyond 
 the means of the masses, is no argument against their 
 cooperating to enjoy its advantages. 
 
 As the celebrated economist. Prof. Conrad, of Halle, 
 wisely points out, by the use of credit capital is employed 
 more productively. He who possesses capital but is una- 
 ble to make use of it transfers it to another for compen-
 
 200 HOW TO COOPERATE. 
 
 sation to the benefit of both, as well as that of the pub- 
 lic economy. Thus farmers, artisans and traders, 
 although unprovided with means of their own, may by 
 the use of credit obtain capital to assist them in their 
 labors without sacrificing their independence. This 
 point is to be particularly borne in mind as of special 
 weight in judging the People's Banks or Credit Unions 
 described hereafter. Credit is thus of importance in 
 avoiding that separation of capital and labor which 
 excites so much bad feeling and forebodes so much dan- 
 ger. Credit gathers together the smallest sums, which 
 otherwise could not be profitably invested, and employs 
 them at a profit. This concentrates capital, but its 
 returns are disseminated among the people. The possi- 
 bility of employing every sum, however small, is a great 
 incentive to saving. Above all, credit binds together 
 the interests of those having dealings with one another, 
 making it to the interest of each to show himself worthy 
 of the trust. 
 
 The matter is well summed up by Prof. Kichard T. 
 Ely, in his article on German cooperative credit unions, 
 in the Atlantic Monthly for February, 1881, when he 
 says : "Capital, when obtained under favorable circum- 
 stances, yields a larger return than the interest. Were 
 it otherwise, borrowing, except in case of special need 
 and distress, would cease. The prudent and skillful 
 worker, who by cooperation can command credit, is thus 
 enabled to obtain besides his wages a surplus from the 
 use of the capital. Credit well used is therefore eco- 
 nomically as productive as a favorable climate or a high 
 education of the people." 
 
 The Extent of People's Banks The credit unions 
 so successful in Germany and Italy afford the best 
 model. It would seem that our cooperative banks or 
 building associations might serve the same purpose by 
 slightly modifying their rules and methods. German
 
 COOPEBATIVE BANKING. 201 
 
 experience, however, shows that loans on personal secu- 
 rity should not be attempted by institutions of this class, 
 emphasizing what is true in America, that the old-line 
 savings bank or the cooperative building association does 
 best to confine itself to real estate loans, leaving to 
 national and private banks, and to the people's banks 
 that we hope to see established, the business of loaning 
 on personal security. 
 
 The credit union, or people's bank, in Europe is 
 almost as old as the Rochdale system of distributive 
 cooperation in England, though unlike the latter it has 
 as yet secured no foothold in this country. **It enables 
 its members to obtain at any moment ready money in 
 amount corresponding to their position, their property, 
 the business they do, etc. The profits of money-dealing, 
 at present a monopoly of capitalists, flow into the pock- 
 ets of the cooperators and assist them in the formation 
 of a capital of their own." Above all, the people's bank 
 saves the high interest now charged by the pawn shops 
 and private brokers for loans on the personal security 
 and chattel mortgages of people in humble circum- 
 stances, the prevalent rate on such loans to poor people 
 being from one to five per cent a month, even in finan- 
 cial centers like New York, Chicago, New Orleans and 
 San Francisco. 
 
 These credit unions owe their origin to Dr. Schulze- 
 Delitsch, and now number nearly 7,000 in Germany 
 alone. The returns from 1,002 of the typical credit 
 unions, for the year ended May 1, 1890, showed nearly 
 half a million members, deposits exceeding $133,000,- 
 000, and over $360,000,000 of authorized loans. Thus 
 the deposits of only one-seventh in number of the Ger- 
 man cooperative banks equal, if they do not exceed, the 
 deposits of the three greatest banks of the world the 
 Bank of England, the Bank of France and the Bank of 
 Germany.
 
 208 HOW TO COdPEBATB. 
 
 Marvellous as this showing is for cooperative savings 
 and credit among the masses, the averages of the thou- 
 sand banks reported are still more instructive. Their 
 capital averaged $133,000, or 1735 for each of their 490 
 members ; loans, 1360,000 ; expenses, $1,400, and losses, 
 $240 per bank. The interest received averaged five and 
 one-third per cent, expenses one per cent, reserves 
 and charities one per cent, leaving three and one-third 
 per cent net earnings paid to shareholders equivalent to 
 five to seven per cent net in various parts of the United 
 States. 
 
 Thus the banks reward investors, while bringing the 
 advantages of credit within the reach of the masses. 
 OflBcial returns indicate that about one-third of the 
 members (who are the patrons) of these credit unions are 
 farmers, an equal number are artisans or independent 
 workmen, and the rest are corporations or other classes. 
 
 How the Banks are Operated. Since their object 
 is to obtain credit for people, most of whom can give 
 only personal security, each member of the bank is 
 legally liable for its debts to the full extent of his ability 
 to pay. This is in direct contrast to the limited liabil- 
 ity feature of American cooperative and joint-stock soci- 
 eties, but in Germany is regarded as the keynote to suc- 
 cess, because it insures increased vigilance on the part of 
 members in securing the best management. The new 
 cooperative law of 1889 permits limited liability, but 
 only a fraction of the German societies have adopted it. 
 This law carefully regulates the conduct and inspection 
 of banks and other societies. The principles on which 
 the people's banks are founded are thus stated by 
 Schulze-Delitsh : 
 
 1. The loan seekers are themselves the managers of the institution 
 established for the satisfaction of their needs, and share the risk and 
 the profit. 
 
 2. The transactions of the association are based throughout on busi- 
 ness principles; the fund of the association pays to the creditors, and 
 the loan takers pay to the fund of the association bank Interest and
 
 COOPERATIVE BANKING. 203 
 
 commission, according to tlie rates in the money market. The mana- 
 gers, especially those who have charge of the funds, receive remuner- 
 ation according to their services. 
 
 3. By full payment, once for all, or by small continuous contribu- 
 tions on the part of the members, shares in the capital of tlie associa- 
 tion are formed, according to the amount of which the profit is divided 
 and placed to their credit till the full normal sum is reached, by which 
 means an ever-growing capital of its own is acquired for the business 
 of the association. 
 
 4. By the entrance fees of members and by reservation of shares a 
 common reserve fund is accumulated. 
 
 5. Sums further necessary for the complete carrying on of the busi- 
 ness are borrowed on the common credit and security of all the 
 members. 
 
 6. The number of members is unlimited. Entrance is open to all 
 who satisfy the requirements of the statutes, and it is free to any one 
 to cease to be a member after giving due notice. 
 
 Members and Management. The bank must 
 start with at least seven members, who hold one share 
 each, upon which at least ten per cent must be paid in. 
 Each member has but one vote, and proxies are not 
 allowed, except that women can give proxies. Beiii2^ 
 founded on the principle of self-help, and in no sense 
 charitable institutions, membership is confined to those 
 who can pay each month even a small sum on their shares. 
 This indicates a person's ability to make use of credit, 
 help himself by it and pay his loan when due. Appli- 
 cants for membership are passed upon by the directors, 
 and may appeal to the shareholders. This preserves 
 the cooperative idea of maintaining the members' 
 authority and power over the managing board. 
 
 The government is vested in all the shareholders, who 
 elect a supervising council and a board of directors. 
 The latter choose an executive committee consisting of 
 one or more of their number and the cashier. The dis- 
 count committee consists of the supervisors and at least 
 fifteen other members, who are nominated by the share- 
 holders at the quarterly meetings. Three arbitrators 
 for the settlement of disputes are also elected. The 
 directors conduct the business and with their employes 
 are heavily bonded and pecuniarily and criminally
 
 %Qi HOW TO COOPERATE. 
 
 responsible for all their faults. The supervising coun- 
 cil is equally responsible, having oversight of the direc- 
 tors, with power of suspension. The supervisors can 
 also call a meeting of shareholders that has full power 
 to revoke a directors' election, suspend or expel members 
 under certain restrictions, limit members' payments, 
 amount of loans, etc. 
 
 Monthly, quarterly, and annual reports are made. 
 Interest is paid on deposits and other features usual to 
 the banking business are adopted. The credit union 
 aims to accumulate a substantial share capital and 
 encourages its members to carry their dividends to the 
 credit of their shares. This and the unlimited liability 
 of principal gives the union credit with which to bor- 
 row from regular banks money required for its members. 
 Great importance is attached to the reserve fund, which 
 accumulates from entrance fees and from certain propor- 
 tions of the earnings. The larger this reserve fund the 
 greater the ability of the bank to borrow money, the 
 profits on which when re-loaned to its patrons are divi- 
 ded among the shareholders, making the dividends 
 larger. Losses and profits are divided among the share- 
 holders in proportion to the shares which they own, 
 according to the amount of money actually paid on the 
 same. 
 
 Loans and their Privileges. Loans are usually 
 made for three months only. The first consideration is 
 the solvency of the borrower, which depends upon his 
 financial position, his moral character, and his business 
 capacity, which are usually readily determined from 
 inquiry of other members. One or two indorsements are 
 also required. These Dr. Schulze calls the keystone in 
 the organization of personal credit, and in itself consti- 
 tutes the sole responsible guarantee of the solvency of 
 the debtor, and is the usual practice with regular 
 banks. "Nothing better than these indorsements assure
 
 COOPEEATIVE BANKING. 205 
 
 to a society an exact idea of the solvency of its debtors, 
 and in no way can it better exercise control over their 
 position or possible changes therein. Worthy and capa- 
 ble artisans and farmers who have real need of loans will 
 never fail to find indorsers, such favors being recipro- 
 cal." This idea has been carried to such an extent 
 that it has become the point of honor with members of 
 the German banks that nothing, is more disgraceful than 
 to cause loss to a comrade who has served for one's 
 security. 
 
 Loans are also made on bills of exchange and other 
 acceptable collateral, and also on deposits or "on 
 account." Notice of withdrawal of deposits is required, 
 so the use of checks among the members is not common. 
 This feature might be modified to better accommodate 
 the masses. Directors or employes cannot borrow 
 money for themselves, and must consult the supervisors 
 in all cases of doubtful security. Loans are made only 
 to those who use the money to assist in gaining a living 
 by honest labor, every feature of speculation being scru- 
 pulously avoided. Real estate loans are not made 
 because of the time and expense to realize on them. 
 Since the unions borrow on short time much of the funds 
 they lend, they must have quickly available security, 
 which is obtained as above described. In addition to 
 this banking business, the people's bank will collect 
 debts due to its members, thus giving the single mem- 
 ber the moral and legal power of a moneyed institution. 
 It will also buy and sell public stocks and other perso- 
 nal property for its members, and may keep and admin- 
 ister property and estates, after the plan of our Ameri- 
 can safe deposit and trust companies. The union thus 
 acts for the poor man as his business friend, adviser and 
 agent a savings bank as well as a lender. 
 
 How to Start a People's Bank. It will be seen 
 that these institutions are much wider in their scope.
 
 206 HOW TO COOPERATE. 
 
 more elastic and useful, besides doing a work that the 
 ordinary cooperative bank or building association can- 
 not well undertake. It is equally adapted to city and 
 country, it is easily managed at small expense, honesty 
 and carefulness being the main requisites in the officers. 
 As the amounts handled would be small, so the risk of 
 losses by theft or carelessness would be light. Hence, 
 there is hardly a community that does not possess one or 
 more men competent to run such a bank with the assis- 
 tance of its dii-jctors. 
 
 To start such a bank two or three men should make a 
 thorough study of it, drawing up a code of by-laws 
 which may be a modification based on the by-laws of the 
 Grangers' bank of California and those of the various 
 cooperative societies. Here, as in organizing other 
 cooperative societies, great care should be taken to com- 
 ply with the law, a capable lawyer being employed for 
 the purpose. (See Page 184.)
 
 CHAPTER IX. 
 
 FAEMERS' AND PEOPLE'S EXCHANGES. 
 
 Their Purpose and Success. These exchanges 
 vary in their scope and methods. The Farmers' Alli- 
 ance Exchange is often a central State agency, without 
 much capita], for buying in bulk supplies ordered by 
 Sub-Alliances, forwarding the same for distribution at 
 the wholesale price paid plus expenses. Other State 
 Alliance Exchanges aim to do business on the principle 
 of a cooperative store, buying at one price, selling at 
 another, and dividing profits between interest on capital 
 and dividend on purchases ; but also making a business 
 of selling stock, produce, etc., for farmers on commis- 
 sion, making advances on consignments and the like. 
 The ambitious but unsuccessful Texas exchange (see 
 Page 34) was among the first of this class, but its suc- 
 cessors have profited by its experience and many of them 
 are accomplishing much good. When of the class first 
 described, these agencies are only a repetition of the old 
 grange system, which has proved its lack of permanency, 
 but appear now to be paving the way for more business- 
 like cooperation. They have served a useful purpose in 
 greatly reducing prices on agricultural machinery and 
 farmers' supplies, which had been advanced since tlie 
 reduction forced by the Grange in a similar way fifteen 
 or twenty years ago. The managers or State business 
 agents of the Alliances have a national organization, that 
 has immense possibilities if backed by ample capital. 
 A brief description of the Kansas Alliance Exchange 
 
 207
 
 208 HOW TO COOPERATE. 
 
 Company will serve for all these enterprises. (See Ap- 
 pendix for by-laws.) 
 
 The Kansas Farmers' Exchange Company was 
 organized in August of 1889 to transact a general mer- 
 cantile business, including buying and selling of all 
 classes of produce and goods. The authorized capital 
 was half a million dollars in one thousand shares of 
 $500 each, membership being confined to Alliance men. 
 
 Fig. 25. Edwin Snyder, Live Stock Agent Kansas Alliance 
 Exchange Company. 
 
 The business offices are now located at Kansas City, 
 Kansas. Trading is done on the cooperative basis. 
 Division of profits is a little peculiar, forty per cent of 
 the net profits going to capital, the other sixty per cent 
 going to dividends or rebate to purchasers. The divi- 
 dend is payable in cash to shareholders, while in the 
 case of Alliance men who are not shareholders it is 
 passed to their credit against shares of stock. Non-
 
 FAKMERS' AND PEOPLE'S EXCHANGES. 209 
 
 members receive no dividends. The business includes 
 all lines of goods, but at the start no stock of any kind 
 was carried, the plan being to issue a large catalogue 
 and price list of goods for which contracts have been 
 made with manufacturers and wholesalers, and transfer 
 the orders received from Sub- Alliances to these parties. 
 The possibilities of immensely extending their usefulness 
 have led the management to call for more capital with 
 which to carry a stock of goods. The Exchange realizes 
 that it ought to supply all the local cooperative stores in 
 the State, uniting with the function of a wholesale soci- 
 ety those of a selling agency for farm products. 
 
 A Strong Point is Made of Economy in manage- 
 ment, the company seeking to do a plain, straight coop- 
 erative business, neither fearing nor courting competi- 
 tion. In 1891 its sales of binding twine reached over 
 one hundred car-loads, the twine being sold uniformly 
 at the same price to all one-half cent per pound above 
 cost at retail and one-fourth cent above cost to local 
 cooperative stores. The sales for the nine months ended 
 Sept. 30, 1890, aggregated, of farming implements $50,- 
 000, groceries $40,000, barbed wire $10,000, binding 
 twine $35,000, vehicles and machinery $26,000. It also 
 sold on commission for its members grain to the amount 
 of over $250,000, and live stock amounting to $600,000. 
 The nine months' total was thus about $1,000,000, the 
 expense of doing which was $9,693.37, the profits or 
 earnings being within $85 of this amount. This does 
 not include the profits on the live stock business, which 
 goes to the shippers, as is explained in the account 
 further on of the cooperative cattle-growers' company. 
 
 To transact this amount of business, the paid-up stock, 
 Sept. 30, amounted to $21,000, three-quarters of which 
 was cash, and the balance oflfice fixtures, merchandise 
 and bills receivable. The business is managed by an 
 executive committee of three, who give it all their time. 
 14
 
 210 HOW TO COOPERATE. 
 
 Grain is Stored and Cash Advances Secured upon 
 it by delegating certain large and well establislied com- 
 mission companies as Alliance grain agents. When the 
 Exchange secures capital enough to buy or build its own 
 elevators it will do this business itself. By its present 
 arrangement, farmers can store their grain in the eleva- 
 tors (at the large cities) of the authorized Alliance agent 
 for one cent per bushel for the first thirty days, and half 
 a cent for every thirty days thereafter, with insurance 
 at cost. The shipper is issued a warehouse receipt for 
 the wheat, specifying the amount and grade, this receipt 
 being negotiable or immediately available as collateral 
 security. Almost any bank will advance money on these 
 receipts, or the company will make advances to the 
 amount of three-quarters of its value, with interest at 
 ten per cent. This is done with the understanding that 
 whenever the market value of wheat is within five cents 
 per bushel of the amount advanced, with accrued 
 charges, the owner will be advised, and if he does not 
 wish to put up money enough to maintain the five cent 
 margin, the wheat can be sold and the balance remitted 
 to the owner. 
 
 Improved freight rates are secured through the same 
 agency. Thus farmers are able to ship their own grain, 
 because they have nothing to do with it after the wheat 
 is loaded on the cars. It gives them a chance to secure 
 and store their wheat when in the best mercantile condi- 
 tion, and an opportunity to realize on it without being- 
 forced to sell when prices are not satisfactory. 
 
 The Farmers Run the Business. Here as in 
 other States these enterprises are directed and managed 
 by farmers themselves. Thus all of the directors of the 
 Kansas Exchange are successful farmers, except F. M. 
 Newland, who has been successfully engaged in mercan- 
 tile pursuits all his life. Messrs. Benson, King, Cleve- 
 land, and Snyder have served one or more terms in the
 
 FAKMERS' AND PEOPLE'S EXCHANGES. 211 
 
 Legislature, and all are old residents of Kansas. Presi- 
 dent Benson, an Illinoisan, has a large farm at Haven, 
 Kansas ; Secretary Sandusky, a Kentuekian, owns a 
 farm in Cherokee county, where he has held positions of 
 honor and trust ; Vice-President House is an extensive 
 farmer at Cloverdale ; Bookkeeper Cleveland has had 
 mercantile experience in Chicago, but was taken from 
 his farm at Agenda ; Treasurer King, an Ohioan, has a 
 good farm at Tannehill. We give these facts to impress 
 our farmer readers with self-confidence in their own 
 ability to manage their own business. 
 
 EXCHANGES CONFINED TO MAEKETING. 
 
 The Delaware Fruit Exchange shows what can 
 be done in this single line. Until its advent, growers 
 shipped their peaches to the large markets to be sold on 
 commission. The result was that frequently the mar- 
 kets were glutted and the prices received did not cover 
 the cost of transportation, baskets and sellers' commis- 
 sion. The prices were very uneven, there was great dif- 
 ficulty in getting sufficient cars, freight rates were exor- 
 bitant, there was great loss in failure to return packages, 
 and the profits were largely consumed by the commis- 
 sion merchants' charges. 
 
 To remedy some of these abuses, the Delaware Fruit 
 Exchange was organized (mainly by W. P. Corsa) with 
 a few hundred dollars capital, which served to put 
 up a small building at Wyoming, Del., in which fruit 
 could be sold at auction, with the necessary accommoda- 
 tions for clerks, telegraph operators, and other conven- 
 iences for transacting business. Before the opening of 
 the peach season a canvass was made of the principal 
 markets throughout the country, and the dealers in 
 fresh fruits were invited to send buyers to the Exchange. 
 The idea of the Exchange was to have all the fruit that 
 was brought to it inspected and carefully graded, and
 
 218 
 
 HOW TO COOPERATE.
 
 farmers' akd people's exchanges, 213 
 
 then sold at auction to the highest bidder. It was pro- 
 posed to extend the operation of the Exchange through- 
 out the whole Peninsula, by having a competent and 
 sworn inspector at the different shipping points who 
 should telegraph every morning, before the Exchange 
 opened for business, the number of cars of the different 
 grades of peaches that would be for sale at his shipping 
 point. Having established confidence in the grade, this 
 fruit at all these different stations could be sold at auc- 
 tion on the Exchange without the buyer ever seeing it. 
 
 The Grower Establishes the Market The re- 
 sult was that for several seasons the Exchange worked 
 quite satisfactorily. The trade found it much better to 
 send a man to buy such peaches as they desired, at the 
 point where the peaches were collected, than to have the 
 fruit shipped to their market indiscriminately. All 
 fruit was paid for on the spot as soon as sold, the 
 Exchange reserving one cent per basket for its ser- 
 vices and charging five dollars per car for loading the 
 fruit. The baskets were sold with the fruit. . Commu- 
 nication by wire was kept up with all the principal mar- 
 kets, and the price of peaches was made at Wyoming 
 instead of in New York and other cities. There was 
 always competition among the buyers to secure the best 
 fruit, which kept up prices. 
 
 Most of the former abuses of the peach-marketing sys- 
 tem were in this way overcome. The farmer drove up 
 to the Exchange with his peaches properly graded, had 
 them inspected and the grade guaranteed, a sample bas- 
 ket or two of each grade was exposed at the auctioneer's 
 stand, sold for what it would bring, and the lot immedi- 
 ately loaded upon the cars. The money was paid to the 
 Exchange on the spot and turned over to the farmer, less 
 a commission of one cent per basket. The farmer thus 
 had no further trouble with freight rates, cars, commis- 
 sion merchants, or other evils of the old system. The
 
 214 HOW TO COOPERATE. 
 
 fanners also received a higher price for their fruit, not 
 only because it was better assorted than formerly, but 
 because the buyers came from all parts of the country, 
 and therefore distributed the peaches more widely than 
 had previously been the case. Thus gluts were avoided, 
 and the fruit being shipped direct to market by the 
 buyer arrived there in better condition than under the 
 previous state of affairs. 
 
 This is unquestionably the correct principle for mar- 
 keting the peach crop, and a principle that can be 
 applied with equal facility to any other crop that can be 
 massed in sufficiently large quantities to attract buyers. 
 But the Exchange has not been so successful as has been 
 hoped for various reasons, principally because many fruit 
 growers would persist in selling to the assembled buyers 
 outside of the Exchange. So long as they could do this 
 and save ihe commission of one cent per basket, these 
 growers considered it the proper thing to do, failing 
 entirely to recognize the truth of the fact that the suc- 
 cess of the effort to attract all the principal buyers to 
 one or two points must depend upon the growers coop- 
 erating with such a medium as the Exchange. 
 
 The Weak Points in the Delaware Fruit Exchange 
 were three-fold : 1, members did not invest sufficient 
 capital to hold their interest ; 2, the profits from com- 
 missions were intentionally small, to cover expenses only, 
 instead of being sufficient to accumulate a surplus ; 3, 
 having so little at stake financially, so that non-members 
 and those who sold outside the Exchange reaped its 
 advantages without cost, and the business season being 
 only a few weeks in duration, the members could not be 
 held together, and a light crop year completed their dis- 
 organization. 
 
 All these defects could have been guarded against, the 
 success of this perfect system of markebing insured, and 
 immensely greater advantages secured, if the Exchange
 
 PARMEES' AND PEOPLE'S EXCHANGES. 215 
 
 had simply had a little more capital, charged more com- 
 mission and used its surplus for buying a stock of goods 
 for a cooperative store that should operate the year 
 through, that might in time develop into a sort of 
 wholesale agency for the similar stores at all the branch 
 shipping points. This remedy has been applied with 
 success in New Jersey, as the ensuing pages describe. 
 
 COOPERATIVE PRUIT SHIPPERS OF THE PACIFIC COAST. 
 
 The California Fruit Union was organized in 1886, 
 with 250,000 shares of one dollar each, which were sub- 
 scribed for by fruit-growers on the basis of one share per 
 acre in bearing fruit or vegetables. Its headquarters 
 are at Sacramento, L. W. Buck being the present secre- 
 tary and general manager, a position held by H. A. 
 Fairbanks up to this year. (See Appendix for by-laws.) 
 
 First formed as an exclusive organization for growers, 
 one year's business with buyers working in opposition to 
 the growers proved disastrous to both, but more so to 
 the buyers than to those who produce their own fruit. 
 In the second year some buyers joined with the growers 
 and worked with them, and have continued to do so 
 since, such members being required to take at least two 
 hundred shares each. The stock of itself was not sup- 
 posed to be a money-making investment, but most grow- 
 ers were willing to contribute one dollar per acre to 
 secure a better method of marketing. 
 
 After the parent organization had completed its 
 arrangements for refrigerator and ventilator cars, quick 
 transit, reduced rates, etc., branch unions were organ- 
 ized at each important shipping point. The members 
 of these branches elected a manager, who attended to 
 getting together enough fruit to fill the car, loading, 
 etc. His salary and expenses are met by his commis- 
 sions on the box lumber, wrapping paper, nails, etc., 
 which he furnishes to the members, obtaining the same
 
 216 
 
 HOW TO COOPERATE. 
 
 through the central union at such low prices that he can 
 sell out at a profit and yet be below retail prices. The 
 main offce notifies the branches when trains will be 
 dispatched and how many cars each can have in each 
 train. As a saving of one hundred dollars per car is 
 effected when solid trains of ten or fifteen ears of fruit 
 are shipped, this item alone is sufficient to warrant 
 the cooperation. The main office also receives daily 
 
 Fig. 27. Loading Peaches at the Delawabe Fruit Exchange. 
 
 reports by wire of all sales of the produce made in the 
 Eastern markets, which are transmitted by telephone 
 and telegraph to local branches. 
 
 The California Fruit Union does not buy any fruit or 
 incur any indebtedness except for running expenses and 
 freight. Hence the amount of capital employed is lim- 
 ited, as, at the end of the year, all profits are divided 
 among the shippers in proportion to the selling of their 
 respective shipments, after paying six per cent interest
 
 farmers' and people's exchanges. 317 
 
 on capital. Any individual may buy or ship as much 
 fruit as he may desire, the great object being to enable 
 small growers to ship in small quantities at car-load and 
 train rates. 
 
 How the Business is Conducted will be best ex- 
 plained by first publishing the contract made by the 
 union with its selling agencies or commission men in 
 the Eastern cities : 
 
 THIS AGREEMENT, Made and entered into this day of 1& , 
 
 by and between tiie California Fruit Union, a corporation organized 
 and existing under and by virtue of the laws of the State of California, 
 
 the party of tlie first part, and of the parly of the second part; 
 
 Wltnesseth: That, wliereas, the party of the first part is engaged In 
 the business of shipping green and dried fruits and other California 
 
 farm products, and is desirous of making shipments to the city of 
 
 in the State of and of appointing an agent resident at said place, 
 
 to receive and dispose of the shipments made thereto; And, 
 
 Whereas, the party of the second part is desirous of being appointed 
 such agent : Now, Therefore, in consideration of the premises, the par- 
 ties hereto do hereby covenant and agree as follows, to wit : 
 
 The party of the first part does hereby appoint the party of the sec- 
 ond part its agent, to receive, take charge of, and sell, all shipments 
 
 made by the party of the first part to the said city of during the 
 
 existence of this agreement. Each of said shipments shall be clearly 
 marked so as to designate and Indicate for whose account and benefit 
 it is made by the party of the first part; and shall be accompanied by 
 an invoice showing the character of said shipment and the name of 
 the person for whose benefit it is made. Any discrepancy between 
 any shipment upon its arrival at its destination and the said invoice 
 shall be immediately reported by the party of the second part to the 
 party of the first part. 
 
 Tlie party of the second part shall receive and take charge of each 
 
 shipment immediately upon its arrival at said city of and shall 
 
 pay all freight and cartage expenses chargeable against the same, and 
 shall repay to the party of the first part all moneys advanced for ac- 
 count thereof by said party of the first part, and shall promptly sell 
 the same for the highest price obtainable, and after deducting the 
 advances and payments made by him for the purposes aforesaid, and 
 a commission at tlie rate of ten per cent on the gross amount realized 
 on the sale of said green fruits, and five per cent on ail other products, 
 shall remit the balance by bill of exchange or postal order to the per- 
 son for whose benefit said shipment was made. The said remittance 
 shall be made promptly within ten days after making of said sale, and 
 shall be accompanied by an itemized account of sales, properly au- 
 thenticated by the said party of the second part, showing in detail for 
 what price each package of said shipment was sold. 
 
 Said party of the second part shall at the same time, by bill of ex- 
 change or postal order, remit to the party of the first part all advances* 
 made by it for account of said shipment, and so mucn of the said ten 
 per cent as shall equal three per cent of the gross amount realized on 
 green fruit, and one and one-half per cent on all other products ; 
 which said remittance shall be accompanied by a duplicate of the 
 account of sales sent to the person for whose benefit the shipment 
 was made. 
 
 The party of the second part shall, within twenty-four hours after 
 the receipt of each shipment, notify by mail the person for whose 
 benefit it was made of the receipt thereof, its condition, the prices at 
 which like products are then selling, and if any portion thereof h:is 
 been sold, the portion so sold and tlie price realized therefrom, and 
 the portion on hand. During the day on which any shii)ment may be
 
 S18 
 
 HOW TO COOPERATE. 
 
 received by the party of the second part, lie shall, at his own cost and 
 expense, notify the party of the first part by telegram of the re- 
 ceipt thereof, lU condition, and prices which like products are then 
 commanding. .,, ^ ~ ^ ^^ ^ ^ ^ 
 
 If any shipment shall not sell for an amount sufficient, after deduct- 
 ing the commission herein provided for, to repay to the party of the 
 second part tlie advances he may have made thereon, the party of the 
 first part will pay such advances, or so much thereof as said shipment 
 shall fail to pay. 
 
 Tlie party of the second part sahll not, during the existence of this 
 agreement, receive or become the agent for the sale of, or be in any 
 manner interested in, the purchase, sale, or disposition of any Califor- 
 nia fruits and other farm products, of the kind, qualities, or varieties 
 shipped by the party of the first part, except as in this agreement pro- 
 vided. Except that said party of the second part may receive and sell 
 on commission any California fruit which may be consigned to it by 
 
 Fig. 28. A Cooperative Evaporating factory, 
 Where the Surplus Fruit of the Delaware Fruit Exchange Is Utilized. 
 
 parties other than the party of the first part, provided that they treat 
 such consignments in the same manner as though they were California 
 Fruit Union shipments, charging ten per cent commission for handling 
 the same and rebating per cent of the gross sales to the party of the 
 first part. Notification by telegram must be made to the manager of 
 the Union of such receipt or expected receipt as soon as ascertained.. 
 The object of this provision is to prevent the party of the second part 
 from engaging or oecoming interested in any business which may in 
 any manner injure or compete with the business of the party of the 
 first part, or those for whom it mav act. 
 
 The party of the second part shall be chargeable with the amount for 
 which any shipment may oe sold by him, although he may fail to col- 
 lect the same from the purchaser. The party of the second part shall, 
 during the existence of this agreement, keep full, true and accurate 
 books of account, in which shall be entered and set down in detail all 
 the business transacted by him for the party of the first part, which
 
 farmers' and people's exchanges. 219 
 
 said books shall at all times be submitted by said party of the second 
 part to the inspection and examination of any authorized agent of the 
 said party of the first part. 
 
 All products received by the party of the second part under this 
 agreement shall be sold by him at private sale, unless tlie said party 
 of the first part shall direct the same to be sold at public auction, in 
 which event the party of the second part shall cause the same to be 
 sold in that manner, and shall publish notice of said sale in at least 
 
 two daily papers published in said city of and by catalogue freely 
 
 circulated among merchants engaged in the fruit business therein, 
 said catalogue to be similar to those used in the sale of Mediterranean 
 fruits at auction. 
 
 In all cases, the auctioneer selected shall be one who is acceptable to 
 the board of trustees of the union. All expenses of every kind in- 
 curred in making such auction shall be paid by said party of the second 
 part out of the proportion of the commission on said sale which he 
 may be entitled to retain, as hereinbefore set forth. Immediately 
 after making such auction sale, the party of the second part shall for- 
 ward, by mail, to every person who may have been interested in the 
 products disposed of thereat, a copy of said catalogue, upon which 
 shall be marked and set down opposite each lot sold the prices real- 
 ized therefor. The party of the second part will, upon the execution 
 of these presents, furnish and deliver to the party of the first part a 
 satisfactory bond for his faithful performance of this agreement. 
 
 This agreement may be terminated at any time by the party of the 
 first part at its option ; and by the party of the second part on giving 
 fifteen days' notice of such intention. In witness whereof, the said 
 party of the first part has caused these presents to be executed by its 
 president and secretary thereunto duly authorized, and the said party 
 of the second part has hereunto set his hand and seal the day and year 
 first above written. 
 
 The benefits of such a contract to both parties, espe- 
 cially members of the Union, cannot be overestimated. 
 The absolute safeguards and the selling by auction are 
 of immense value to shippers. Owing to the distance 
 from market the Union cannot well compel the attend- 
 ance of Eastern buyers, as was the case in Delaware. 
 There are, however, many resident buyers who have 
 cooperated with the Union and offered many chances to 
 growers that they would not have done except for the 
 Union. The collection of claims for losses against rail- 
 roads is another function of the organization. 
 
 These Benefits Cost Shippers Nothing, but are 
 all paid for by the commission merchants, who give 
 the Union three-tenths of their gross commissions. The 
 Union can guarantee each agent a continuous and daily 
 supply during the season, so that the agent can afford 
 to do business for less than when receiving only an occa- 
 sional car. 
 
 The agents usually charge all shippers ten per cent 
 commission, retaining seven per cent for their services
 
 220 HOW TO COOPERATE. 
 
 and returning the other tliree per cent to the Union 
 with a duplicate of the amount of sales, the original of 
 which is sent to each shipper with his check for the net 
 proceeds. Thus the Union handles none of the ship- 
 per's money, but it comes to him direct from the agent 
 who sold his fruit, while the agent gives three-tenths of 
 his commission to the Union for guaranteeing his supply. 
 
 This three per cent netted the Union about 160,000 
 in 1890, out of which all expenses, salaries, oflBce rent, 
 incidentals, etc., were paid, and some $34,000 profits 
 remained. This was divided by declaring six per cent 
 interest on the capital, setting aside two per cent for a 
 reserve and dividing the balance among the shippers in 
 proportion to the amount each had shipped. The bal- 
 ance thus divided was two and one-tenth per cent on the 
 gross sales, which, deducted from the agent's ten per 
 cent commission, . reduced the actual commission paid 
 by each shipper to seven and nine-tenths per cent. 
 
 The Great Success of the Effort is most encourag- 
 ing. The members number nearly 1,000, owning 15,000 
 paid up shares. The business shows a heavy increase. 
 In the seven shipping months of 1890 the Union handled 
 1,400 carloads of fruit, and 600 more were shipped by 
 its members, making a total of 2,000 cars handled by 
 the Union out of the 3,300 cars shipped by the entire 
 State. The consignors increased from 173 the previous 
 year to 322, from thirty-one different points. Of the di- 
 rect shipments 190 cars went by special trains, 476 by 
 passenger trains, 258 by freight, and 449 by refrigerator 
 cars. Chicago took 828 cars, New York 136, Boston 
 116, Minneapolis 74, Omaha 75, New Orleans 58, St. Paul 
 39, St. Louis 32, Louisville 10, and Kansas City seven. 
 
 The record books show duplicate accounts of sales of 
 578,232 boxes and 234,617 crates of fruit, amounting 
 to $1,501,023. From this was deducted for freight, 
 $620,688; cartage, commission and cold storage, $158,-
 
 PAEMERS' AND PEOPLE'S EXOHAKOES. 
 
 221 
 
 438 ; leaving net returns of $721,897. The Union was 
 never more prosperous, having a balance of some 134,000 
 to divide in reserves, interest on capital and rebate on 
 shipments, as appears from the statement submitted to 
 the annual meeting at San Francisco in January, 1891 : 
 
 STATEMENT CALIFORNIA FRUIT UNION FOR 1890. 
 
 
 PAID 
 
 Office expenses.. 
 
 OUT. 
 
 $1,614.49 
 .12,657.97 
 ..6,460.42 
 S. 1,468.71 
 .. 660.75 
 .. 365.60 
 'g 250.57 
 ..2,881.10 
 . . 31.25 
 
 1 
 
 26,390.86 
 
 33,916.92 
 
 430.00 
 
 ASSETS. 
 
 ..$15,174.25 
 
 
 W.R4 
 
 Salary 
 
 Traveling Expen' 
 Office Fixtures. .. 
 
 Telephone 
 
 Freight and Load 
 Telegraph Acc't.. 
 
 Taxes 
 
 Cash in bank 
 
 Cash on hand. . . . 
 
 Received from Eastern 
 Agents being 3-lOths of 
 their commissions 43,728.21 
 
 Uncalled for balances 
 
 Dividend No. 1 94.16 
 
 Dividend No. 2 164.42 
 
 Dividend No. 3 207.18 
 
 Rebate No. 2 185.11 
 
 Rebate No. 3 .^i4.9i 
 
 
 
 
 
 ^60,737.78 
 
 $60,737.78 
 
 The main thing to regret in this wonderfully success- 
 ful effort is, that the net profits are not utilized as a 
 filnd for the establishment of a State wholesale exchange, 
 to furnish supplies direct to local stores and individuals. 
 The members would get far more benefit out of the 
 money used in this way than from the comparatively 
 small driblets divided among them in the shape of 
 rebates. 
 
 MARKETING CATTLE COOPERATIVELY. 
 
 How to Beat the Packers' Combine. It is safe 
 to say that no one branch of agriculture in the United 
 States has suffered more directly from the extortion of 
 monopolies than has the cattle industry at the hands of 
 the packers' combination. It has been conclusively 
 demonstrated that this trust practically controls, if it 
 does not own, the principal live stock exchanges or cattle 
 markets, as at Chicago, St. Louis, Kansas City, Omaha, 
 Pittsburg and lesser points. The combine regulates 
 prices and prevents competition between its members 
 for cattle, thus depressing prices to the cattle grower.
 
 222 HOW TO COOPERATE. 
 
 On the other hand, it undersells local butchers wherever 
 necessary to secure a foothold and, after having crowded 
 them out, forces up prices, compelling consumers to pay 
 extortionate values. 
 
 The reader should understand that live stock ex- 
 changes, as now constituted, are organizations of com- 
 mission men principally for the purpose of compelling 
 their members to charge certain prices for selling stock 
 based on fifty cents per head for cattle, twenty-five 
 cents for calves, and ten cents for hogs and sheep. They 
 have induced the packers to join their exchange, and 
 have a rule that no member shall do any business with 
 an expelled member. 
 
 No more flagrant outrage exists than that a few com- 
 mission men should be allowed to take possession of the 
 public market, and compel the public to pass its stock 
 through their hands at a charge which the operations 
 of this cooperative company show is at least twice a rea- 
 sonable compensation. 
 
 But cattle growers found by costly experience that 
 neither grumbling nor legislation would protect them 
 against a monopoly that forced down the price of what 
 they had to sell and put up the price of what they had 
 had to buy. The great cattle growers of Texas, Colo- 
 rado, New Mexico, Kansas, Nebraska, Missouri and 
 other States finally came to the sound conclusion that 
 the only true way out was to compete with the trust by 
 means of a cooperative organization. 
 
 The American Live Stock Commission Com- 
 pany was therefore incorporated in March, 1889, under 
 the laws of Illinois, with a capital of $100,000 in 1,000 
 shares of 1100 each. While each share is entitled to a 
 vote, no one person or society can own more than twenty- 
 five shares. Of the profits, thirty-five per cent go to 
 capital and sixty-five per cent in dividends or rebate on 
 the commissions paid by shareholders. Its object is to
 
 FARMBES' AND PEOPLE'S EXCHANGES. 
 
 223 
 
 engage in the business of buying, selling and handling 
 live stock in the various stockyards and markets of the 
 country and to encourage the raising and feeding of 
 stock for market. The headquarters are at Union Stock 
 Yards, Chicago, with branches at Omaha, Kansas City 
 and St. Louis. Aside from the cooperative feature of 
 
 Fig. 29. Eli Tittts, Manager American Live Stock Commission 
 Company. 
 
 distribution of profits and conduct of the business by 
 those who furnish the cattle it handles, the by-laws are 
 those usual with joint stock corporations. Including the 
 State alliances of Kansas, Nebraska and Missouri, and 
 the Kansas State grange, there are (August, 1891) two 
 hundred and sixty-four stockholders.
 
 224 HOW TO COOPERATE. 
 
 The company charges the same commissions as other 
 houses, dividing its profits as above stated. It has natu- 
 rally met the strongest possible opposition at Chicago, 
 in particular. The animus of the fight is simply that 
 members of the live stock exchange want its business 
 and their own prices for doing it, and do not want the 
 producers to cooperate and do the business for them- 
 selves at a saving of fifty to seventy-five per cent. The 
 company was therefore expelled by vote from the Chi- 
 cago live stock exchange. When it persisted in trading 
 there the exchange secured a court verdict that knocked 
 the company out of that market on the plea that this 
 cooperative affair was a dangerous trust conspiracy ! An 
 injunction against this infamous decision was secured, 
 and the company continues business at Chicago, while 
 its case is before the supreme court of the State, where 
 it confidently expects to win. The company has had 
 much more law than justice, but the members know 
 that their principles are eternally right and just, and 
 have the utmost confidence in ultimate success and legal 
 victory. 
 
 Progress, Business and Profits. The remarkable 
 results of the American Live Stock Commission Com- 
 pany, demonstrated by incontestable success, show the 
 wisdom and economy of its management and prove the 
 ability of cooperation to combat the '' trust," even in 
 the cattle business. 
 
 It began business in May, 1889, with a paid up capi- 
 tal of $25,000, and on Nov. 30 divided $45,000 profits 
 among its shareholders. The thirty-five per cent of 
 this sum accruing to capital equals fifteen dollars per 
 share, or sixty per cent interest on the twenty-five dol- 
 lars per share paid up seven months before. The bal- 
 ance, declared as dividend on the commissions paid by 
 shareholders on the cattle sold for them, equaled sixty 
 per cent of the commissions so paid.
 
 farmers' and people's exchanges. 
 
 225 
 
 In other words, in the first seven months, with only 
 125,000 cash capital, cooperation enabled cattle men to 
 sell their stock at an expense of only forty per cent of 
 the usual charges, on top of which they got oyer one 
 hundred per cent per annum interest on their capital, 
 besides accumulating a small reserve ! 
 
 With such a showing, no wonder the cooperators 
 increased their authorized capital to $250,000 in Janu- 
 ary, 1890, of which a total of $49,000 was paid up, 
 and went in for a more extensive business. They got it, 
 too, as thus appears : 
 
 business of AMERICAN LIVE STOCK COMMISSION COM- 
 MISSION COMPANY FOR YEAR ENJ)ED DEC. 1, 1890. 
 
 THE DETAILS OP THE SHIPMENTS. 
 
 Chicago house 
 
 Kansas City house 
 
 St. Louis liouse 
 
 Omaha 
 
 Totals . 
 
 ffil "o^- 
 
 3,710 904 
 
 5,0G5 84,786 
 
 531 2,736 
 
 497 i 22,272 
 
 9,8091 110,698 
 
 Sli'ep 
 
 3,246 
 
 2,752 
 277 
 
 6,275 
 
 Calves.\ Cattle. 
 
 Commis- 
 sion. 
 
 5,720, 83,662; $40,642.00 
 
 14.873' 89,138 50,077 12 
 
 2,1971 11,340 6,150.15 
 
 93 3,888 3,871.70 
 
 22,8831 188,0281 $101,346.97 
 
 DIVISIONS AS TO MEMBERSHIP. 
 
 Stockholders 
 
 7,607 
 
 1,034 
 
 968 
 
 164 
 
 3 
 
 66 
 
 37.821 
 2.5,530 
 37,387 
 
 8,5C6 
 66 
 
 1,328 
 
 3,914 
 
 1,297 
 
 992 
 
 21,934 
 
 832 
 
 112 
 
 5 
 
 161,975 
 
 15,685 
 
 9,254 
 
 857 
 
 38 
 
 219 
 
 $82,686.27 
 
 9,449.30 
 
 7,787.50 
 
 1,161.50 
 
 25.00 
 
 
 Kansas Alliance 
 
 Nebraska Alliance 
 
 F. M. B. A. of Illinois 
 
 Kansas State Grange 
 
 72 
 
 
 237.40 
 
 Totals 
 
 9,809 
 
 110,698 ''!'7R 
 
 22,883 
 
 188,028 
 
 $101,346.97 
 
 
 
 ' 
 
 Over Two and One-Half Million Dollars was the 
 
 aggregate of the sales made during the year, the largest 
 business of any single cooperative society in America. 
 The commissions on these sales were over $101,000, of 
 which only $31,000 was required for expenses and re- 
 serves. Thus the actual cost of transacting the business 
 was only one per cent of the gross sales. What per cent 
 is filched by the monopoly exchanges from the cattle 
 men who haven't **sand" or brains enough to cooperate ? 
 15
 
 226 HOW TO COOPEEATE. 
 
 Divided in the usual manner, the profits of 1890 
 equaled fifty per cent interest on capital, and fifty per 
 cent dividend on commissions ! 
 
 All history affords no parallel for such results by 
 cooperation. 
 
 The Men Who Make This Success. No ** spring 
 chicken " is at the head of such an unprecedented suc- 
 cess. No mere rancher without business experience has 
 the ability or nerve to conduct an enterprise of this kind 
 in the teeth of the fiercest commercial and legal opposi- 
 tion the country has ever known. The general manager 
 is Eli Titus, a native of Indiana, but long a resident of 
 Kansas, and identified with her cattle interests for twenty 
 years, both in ranching and feeding. He was live stock 
 agent of the Atchison, Topeka and Santa Fe railroad 
 for several years. He is master of his business and a 
 typical Western rustler, as his picture shows. 
 
 The president, H. W. Cresswell, was a native of Can- 
 ada, but for years has been a resident of Colorado and 
 the West, being known everywhere as one of the largest 
 and most successful ranchmen. He, himself, shipped 
 and marketed 10,480 head of cattle last year. Mr. 
 Cresswell is an energetic and vigorous worker for the 
 success of codperative cattle-marketing, and uncompro- 
 mising for whatever he believes to be right. Edwin 
 Snyder, the live stock agent of the Kansas Alliance 
 Exchange Company, which is a shareholder in the com- 
 mission company, has also been an important factor in 
 its success. Moving from Ohio twenty-five years ago, 
 he has a large farm at Oskaloosa, Kansas, and has long 
 been an earnest student of cooperation and worker in 
 cooperative enterprises. He is an urgent advocate of 
 self-help through cooperation as sure to benefit farmers 
 and the public generally far more than the much-dis- 
 cussed socialistic schemes of the day. In other words, 
 he believes people will do best to help themselves.
 
 FARMEES' AND PEOPLE'S EXCHANGES. 227 
 
 THE HAMMONTON, NEW JERSEY, FRUIT GROWERS' UN- 
 ION AND COOPERATIVE SOCIETY, LIMITED. 
 
 A Typical Farmers' Exchange. Useful as are the 
 foregoing accounts in this chapter, we regard the society 
 and methods now to be treated as even more worthy of 
 attention because typical of the form of cooperation that 
 seems peculiarly adapted to the ordinary farming com- 
 munity. It is a plan whereby the earnings of coopera- 
 tive marketing of produce can furnish capital for coope- 
 rative distribution, with all its attendant benefits. It 
 will work in any part of the country, with proper man- 
 agement, and, like the cooperative store in the city, is 
 the foundation upon which to rear the substantial suc- 
 cess of distributive cooperation, with its powerful union 
 of local stores and exchanges supporting and being fed 
 by a wholesale society with ample capital. 
 
 The Evolution of this Society shows how all asso- 
 wated effort must result in real cooperation to amount 
 to anything. The fruit-growers about Hammonton, in 
 South Jerse}^, had formed a rude union in 1867, which 
 for seventeen years was better than nothing, as it brought 
 ihe farmers together at least once a year, helped some- 
 what in marketing facilities, and to some extent in buy- 
 ing heavy supplies in bulk. Early in the eighties, ar- 
 rangements were made with commission merchants in 
 the larger cities to handle the Union's fruit on the 
 method later imitated by the California Fruit Union, as 
 narrated on Pages 215-221. This gave the society 
 a little capital, and the question was what to do with it. 
 Z. U. Matthews, E. K. Sproul, and others who had 
 studied into cooperative distribution, wisely discerned 
 that if the money from this source was invested in a 
 cooperative store it would not only save money for farm- 
 ers on all they bought through the store, but would hold 
 their interest the year through, thus overcoming the
 
 238 
 
 HOW TO COOPERATE. 

 
 farmers' and people's exchanges. 229 
 
 weak points that later brought dissolution to the once 
 powerful Delaware Fruit Exchange (Page 214). 
 
 The members saw the wisdom of this course, and re- 
 organized Feb. 16, 1884, as the Fruit Growers' Union 
 and Cooperative Society, Limited, being incorporated 
 under the cooperative law. The certificate of association 
 specifies : 
 
 Tlie objects of this society shall be to arrange the methods for ship- 
 ping and selling fruit and other products of the soil, and to protect the 
 interests of shippers; to conduct a store for the sale of general mer- 
 chandise, to its members and others ; to purchase and hold such real 
 estate as may be needed to conduct its business, and to sell any portion 
 of the same, when In the opinion of its officers such sale is desirable. 
 
 Tlie capital stock of the society shall be $50,000, which shall be divided 
 into 10,000 shares of the par value of Ave dollars each. Stock may be 
 issued to members In payment of any dividend made from profits 
 accruing from slilpments or sales of fruit or produce ; each share so 
 Issued must be paid up, but fractional sums of such dividend may be 
 made up to a full share by the member to whom it is due, may be cred- 
 ited to his account, or may be paid to him in cash at the option of the 
 officers of the society. Shares may also be sold for cash at their par 
 value, whenever the officers may deem it expedient, but the par value 
 of such shares must be paid when thtis sold. 
 
 Any person satisfactory to the officers may become a member by 
 paying an entrance fee of one dollar, subscribing for one or more shares 
 of stock, and agreeing to the provisions of this certificate and the by- 
 laws of the society, but no member shall hold office or be entitled to 
 vote at any election who has not had at least one paid-up sliare of 
 stock. 
 
 Annual interest at the rate of six per centum shall be paid to share- 
 holders, and a sum equal to five per cent of tlie net profits shall be set 
 aside annually for a contingent fund and safely invested by the board 
 of directors. The balance of the profits of the society shall be com. 
 puted at the end of each year by the board of directors and a dividend 
 declared and paid to members and purchasers of such portion of said 
 profits as such board may deem consistent with the Interests and safety 
 of the society, provided, that purchasers who are not members sli.ill 
 receive one-half the rate of dividend paid to members. Profits derived 
 from the sale of merchandise may be paid in goods or In cash, as the 
 board of directors may determine. 
 
 Shareholders and Capital. It appears from tlie 
 above, and from the by-laws printed in the Appendix, 
 that the society is organized on purely cooperative lines, 
 but has jealously confined its actual membership to 
 farmers and fruit-growers, although allowing the general 
 public to trade at its store. Outsiders can become
 
 230 HOW TO CO6PEBATB. 
 
 "members" by paying the dollar entrance fee, but only 
 fruit-growers can become shareholders. The profits of 
 the shipping department and the dividends on shippers' 
 commissions are payable in shares of the society, no 
 shares being sold for cash. This keeps the concern in 
 the farmers' hands, and at the same time provides capi- 
 tal without exertion from the farmers, for the receipts 
 of the shipping department actually came out of the 
 commission merchants who handle the fruit. (See Page 
 219 on this point.) 
 
 Buildings and Equipment. The profits from the 
 shipping business of 1884, some $1,500, were used to 
 erect a cheap warehouse, that is shown in the corner of 
 Fig. 33. There was a driveway through it (with plat- 
 form scales), either side of which was partitioned off for 
 feed, fertilizers, flour and other heavy supplies, as no 
 one then dreamed of the society carrying a stock of light 
 goods. A small corner was partitioned off for an office, 
 used mostly by the clerks in charge of the shipping of 
 fruit. The Pennsylvania railroad was not accommodat- 
 ing, but upon the advent of a competing line (the Bead- 
 ing) a switch track to the warehouse was secured ; an- 
 other for cars being loaded, and a third for unloading. 
 Then a coal and wood yard was added, with an elevated 
 switch track. Fruit shipments increased, and a large 
 ice house was required for cold storage in transit. More 
 room being needed in the warehouse, a special fertilizer 
 house was built near the ice house, both next to the 
 tracks. Business began to gravitate to this spot, and 
 the society built a blacksmith and wheelwright shop, 
 which was rented to good workers in these lines. Exten- 
 sive horse sheds are provided. 
 
 Soon the members began to call for pins, and other 
 light household supplies, a stock of which was gradually 
 added. Each year trade and stock increased, until in 
 1890 a fine store was built on directly in front of the
 
 FAKMEES' AKD PEOPLE'S EXCHANGES. 
 
 231 
 
 old warehouse. This is a splendid three-story structure 
 40x60 feet, with a cellar under the whole, which, with 
 the old part, gives a total length of 144 feet. A front 
 view appears in Fig. 30, and the various departments 
 
 Fig. 31. Plan of Fibst Floob ok the Hammonton Stobe. 
 The Narrow^Part Is the New Store, a Front View of which Appears in 
 tlie Preceding Illustration; the Wider and Longer Part is the 
 Original Building, a Separate Picture of which is given in the 
 Upper Comer of Fig. 33. 
 
 are outlined in Figs. 31 and 32 ; the third floor of the 
 new part is used for storage and a workshop. It will he 
 seen that the store carries a complete line of everything 
 required to supply the wants of both farmers and vil- 
 
 [ 
 
 ^ V. o'L'croTM 
 
 
 
 tMPUM 
 
 
 JXATRESSES e 
 
 FEED BINS 
 
 Lv -V 
 
 EARXHENWARl 
 
 
 CROCKED 
 
 MARNtlSStS 
 
 sr(Sts 
 
 ^WOCER^' 
 
 PlO. 82. ABBANGEMENT OF SECOND FLOOB. 
 
 lagers and their families. The location is not far from 
 the passenger depots of the two railroads. 
 
 The Growth of the Business is such that from 
 May to September a special engine, furnished by the
 
 232 
 
 HOW TO COOPERATE. 
 
 railroad, is required to switch the cars handled. Ship- 
 ments of fruit run from one to fifteen carloads daily, 
 from two million to three million quarts of berries being 
 forwarded per season, tons of grapes, and many bushels 
 of pears. Other produce is handled in a small way, but 
 fruit is the great industry. The developments of the 
 different phases appear at a glance in this table : 
 
 COMPARATIVE STATEMENT OF THE HAMMONTON SOCIETY.t 
 
 Assets, gross 
 
 Liabilities 
 
 Assets, net 
 
 Sinking fund 
 
 Gain in store 
 
 Gain in shipping dep't.. 
 
 Total profits 
 
 81 ore receipts 
 
 Store expenditures 
 
 Store profits 
 
 Shipping receipts 
 
 Shipping expenses 
 
 Shipping profits 
 
 Shares sold 
 
 Shares, total issued 
 
 Members added 
 
 Membei-s withdrawn 
 
 Total No. of members... 
 
 Bills receivable 
 
 Dividends paid 
 
 1890. 
 
 $51,050 
 
 15,016 
 
 36,034 
 
 2,004 
 
 7,065 
 
 4,365 
 
 11,430 
 
 132,791 
 
 125,726 
 
 7,065 
 
 7,413 
 
 3,048 
 
 $4,365 
 
 3,390 
 51 
 
 619 
 
 $13,074 
 
 7,816 
 
 1889. 
 
 $39,790 
 
 7,354 
 
 32,436 
 
 1,501 
 
 5,281 
 
 4,774 
 
 10,055 
 
 116,639 
 
 111,358 
 
 5,281 
 
 8,252 
 
 3,478 
 
 4,774 
 
 1,038 
 
 3,404 
 
 50 
 
 2 
 
 468 
 
 11.415 
 
 3,785 
 
 1888. I 1887. 1 
 
 $35,845 
 
 9,679 
 
 26,166 
 
 961 
 
 4,993 
 
 6,817 
 
 11,810 
 
 110,129 
 
 105,136 
 
 4,993 
 
 6,928 
 
 3,111 
 
 6,817 
 
 566 
 
 2,407 
 
 87 
 
 420 
 9,790 
 3,427 
 
 $23,149 
 
 6,027 
 
 17,122 
 
 621 
 
 *6,803 
 
 6,802 
 76,790 
 72,862 
 3,921 
 6,048 
 2,167 
 2,881 
 520 
 1,841 
 52 
 
 333 
 5,049 
 
 1886. 
 
 $15,993 
 
 3,452 
 
 12,541 
 
 379 
 
 4,444 
 
 2,105 
 
 *53,616 
 
 51,501 
 
 *2,105 
 
 364 
 1,321 
 
 281 
 2,156 
 
 1886. 
 
 $9,454 
 
 1,357 
 
 8,454 
 
 133 
 
 2,652 
 
 712 
 32,752 
 32,040 
 
 712 
 
 479 
 985 
 30 
 
 233 
 
 418 
 
 tSllght inaccuracies are due to omissions of cents. Includes both 
 store and shipping departments. 
 
 Explanatory Notes Since 1886 the accounts of 
 the store and of the shipping department have been kept 
 separate, so that the profits of the former might go to 
 purchasers, while the profits of the shipping department 
 are reserved to furnish capital. Some fears have been 
 expressed that the growth of the store might lead to 
 neglect of the marketing, but this has not proved so, 
 nor is it likely to, since the fruit-growers only are share- 
 holders. The increase in assets, business, profits and 
 membership is most gratifying. The bills receivable 
 show that some credit is given, but great care is exer- 
 cised, credit being given only to shareholders whose 
 shares or shipping dividends are good secunty. The 
 figures show that the percentage of credit sales has
 
 FAKMEBS' AND PEOPLE'S EXCHANGES. 
 
 233 
 
 slightly increased, a tendency that should be stopped. 
 The sinking fund is invested in a building association. 
 Great care is exercised to secure a fair and equitable 
 adjustment between the two departments of the ex- 
 change. The directors get $35 a year for their services, 
 and are fined $1.50 for every absence from meetings. 
 These salaries are divided between the two departments. 
 All rents, including the rent of the store, go to the ship- 
 ping department, as it is practically the owner of the 
 busitiess. Nothing is allowed for depreciation of build- 
 ings, but this is offset by the increased value of the real 
 estate, which is worth fully $1,500 more than it stands 
 for in the assets. The store receipts and expenditures 
 stated above include stock, cash and bills on hand, as 
 well as actual sales, the latter last year being just about 
 $100,000 (1890), of which eighty-four per cent was to 
 shareholders and the rest to the outside public. These 
 points will appear still clearer from the following : 
 
 ANNUAL STATEMENT (HAMMONTON) FOR 1890. 
 
 CASH ACCOUNT. 
 
 Jan. 1, 1890, On hand 
 
 Rec'd dur'g year. 
 
 $395.29 
 127,103.15 
 
 Dec. 31, 1890, On hand... 
 Paid dur'g year.. 
 
 $989.78 
 126,508.66 
 
 GENERAL STATEMENT. 
 
 ASSETS. 
 
 $19,712.12 
 
 13,038.61 
 
 73.75 
 
 2,035.15 
 
 557.00 
 
 835.32 
 
 12,538.56 
 989.78 
 
 LIABILITIES. 
 
 Interest due on capital . . . 
 Unpaid sliipping dlvld'd 
 Unpaid store dividend... 
 
 Unpaid store bills 
 
 Sundry bills payable 
 
 Total liabilities i 
 
 $1,171.56 
 
 56.01 
 
 866.12 
 
 972.61 
 
 11,949.75 
 
 Due on accounts . 7,955.67 
 
 Due on notes 5,133.41 
 
 Due on mortg's... 1,219.43 
 
 Sawdust 
 
 Sinking fund net. 
 Track scales 
 
 ^15,016.05 
 ,1890. 
 $36,034.14 
 
 Fixtures less 10% 
 
 Jan. 1, 1890 
 
 3i acres of land . . 612.25 
 Store w i t li i m- 
 
 provements 3,895.44 
 
 Dwell'g & 1 acre. 1,100.00 
 Fertilizer house . . 299.47 
 
 Horse sheds 240.00 
 
 Cloal dumps 740.00 
 
 GAIN IN ASSETS, DEC. 3 
 
 Net assets 
 
 Net assets, Dec. 
 31,1889 $32,419.68 
 
 Less store divi- 
 dend, $3,524.78 . 
 
 Less shipp'g div- 
 idend, $4,290.80. 7,815.58 
 
 Blacksmitli sliop. 625.00 
 
 New store 4,169.78 
 
 Cash on hand 
 
 $24,604.00 
 
 Net profits of 
 store, 1890 7,065.22 
 
 Net shipping de- 
 partment 4,364.92 
 
 
 Total assets 
 
 $51,050.19 
 
 36,034.14
 
 234 
 
 HOW TO COdPERATE. 
 
 ACCOUNT WITH THE STORE. 
 
 EXPEXSE8 (OB CBED 
 
 Jan. 1,1890, Inventory.... 
 Book accounts due . . 
 Notes on hand 
 
 [TOR). 
 
 $17,475.51 
 8,740.05 
 3,341.39 
 1,000.00 
 
 835.32 
 83,717.72 
 
 143.75 
 
 4,584.79 
 
 4,188.31 
 51.47 
 554.65 
 218.43 
 641.77 
 535.72 
 360.00 
 
 7,065.22 
 
 RECEIPTS (OR DEBTOR). 
 
 Dec. 31, 1890, inventory.. $19,712.12 
 Book accounts 7,940.66 
 
 Mortgages on hand. . 
 
 Fixtures $617.80 
 
 Fixtures bought 
 in vear 217.52 
 
 Due on mortgages 1,219.43 
 
 Fixtures on hand 835.32 
 
 Casli on unpaid bills at 
 
 last reports 2,365.97 
 
 Casli on sales 93,921.57 
 
 Mercliandise bouglit 
 
 Atiditors and directors 
 
 (one-half) 
 
 Freight paid during the 
 
 year 
 
 wages paid during the 
 
 year 
 
 Advertising 
 
 Interest on capital st'k. 
 Taxes and insurance.. .. 
 
 Store expenses 
 
 Bank discount 
 
 Interest and discount. . . 722.20 
 
 
 
 Net profit to balance.. . . 
 
 
 Total 
 
 $132,791.10 
 
 Total $132,791.10 
 
 ACCOUNT WITH THE SHIPPING DEPARTMENT. 
 
 PAID (OR CREDITOR). 
 
 Auditors and directors' 
 
 salaries (one-half) $143.75 
 
 184.49 
 230.00 
 130.34 
 466.55 
 15.54 
 40.00 
 
 Sundry expenses. 
 
 Ice . . .'. 
 
 Insurance and taxes 
 
 Interest on capital 
 
 Repairs 
 
 Claims for losses 
 
 Printing and delivering 
 
 dispatclies 
 
 Secretary's salary$150.00 
 
 Clerk hire 370.08 
 
 Wages of loaders. 517.10 
 Superintendent.. 233.86 
 Agent 210.94 
 
 Net profits to bal. . . 
 
 382.61 
 
 1,481.97 
 4,364.92 
 
 Total $7,413.17 
 
 RECEIVED (OR DEBTOR.) 
 
 From commission mer- 
 
 cliants $5,166.77 
 
 Railroad company, re- 
 leased freiglit* 1,585.87 
 
 Railroad company, clerk 
 
 liire 105.00 
 
 Membership fees 51.00 
 
 Rent of store 360.00 
 
 Rent of blacksmith sliop. 15.01 
 
 Rent of dwelling house. . . 96.00 
 
 Fines for absence 4.50 
 
 Sale of old crates 4.32 
 
 Sale of pickers' ticketst . . 24.70 
 
 Total $7,413.17 
 
 Rebate; now done away with and made up in lower rates. tCom- 
 miflsion on sale of railroad tickets for transportation of berry pickers. 
 
 The Store Management aims at selling absolutely 
 pure and honest goods at fair retail prices. At the start 
 the local merchants charged extravagant prices, which 
 the ** Coops "cut quite savagely to get the business a 
 mistake that it is hard to recover from, and which has 
 limited dividends to six per cent. 
 
 The working force includes a general manager, a book- 
 keeper, one cashier, seven male clerks and two female
 
 FARMEKS' AND PEOPLE'S EXCHANGES. 
 
 235
 
 236 HOW TO COOPERATE. 
 
 clerks, and one or two horses are used in the collection 
 and delivery of orders. An approved system of handling 
 the cash is adopted, similar to the system in big city 
 stores, and much like that of the Arlington society ex- 
 cepting that, in lieu of checks, patrons get a slip con- 
 taining the names, prices and amounts of the articles 
 they purchase. Duplicates of all these slips go to the 
 ct:^hier, who handles all money and makes all payments, 
 and whose cash registering machine is a further check. 
 
 The bookkeeper has no connection with the cashier. 
 He makes a daily record in a memorandum book of the 
 amount of each slip turned in (to the cashier and 
 stamped by him) by each clerk, the cash sales entered in 
 black ink and the credit sales in red. This record has 
 to tally with each clerk's report. The lump sum of the 
 cash sales are transferred direct to the cash book daily, 
 while the charges against members are posted up from 
 the individual slips into a ledger. The store preserves 
 its slips and so does the member, so that each party has 
 a check on the other and the auditors a double check on 
 all employes. A trial balance book is kept, from which 
 reports are made up for the monthly meetings of the 
 directors. It contains a statement of all bills paid under 
 their respective headings, the cash receipts in the differ- 
 ent departments and a statement of the balance due 
 from members. In a dividend book are posted up the 
 monthly totals of the purchaser's slips, the quarterly 
 dividend on which is credited on his account if he owes, 
 or otherwise is paid in cash. The journal carries the 
 total of accounts which are posted under their respective 
 headings in the ledger, the system being common double 
 entry. 
 
 The store has had to meet with the usual amount of 
 misrepresentation and opposition from the other dealers. 
 This has been particularly savage because the store un- 
 dertakes to carry all lines of goods. The usual amount
 
 FARMERS* AND PEOPLE'S EXCHANGES. 237 
 
 of lies and rumors against it are constantly circulated, 
 which are not without effect on the weak-kneed. As a 
 rule, however, to their credit be it said, the members 
 are well satisfied and loyal. The business is not confined 
 to Hammonton, but members and patrons come from 
 other towns. So great is its success that there is a con- 
 stant pressure from distant patrons to open branch stores 
 in other townships. 
 
 The Shipping Department is supported by the 
 three-tenths rebate paid it by the produce merchants 
 out of their ten per cent commission on sales. These 
 agents remit direct to the shippers the net amount re- 
 ceived for each person's shipment less commission, 
 freight and cartage, a duplicate of each account being 
 sent to the Union also with check for its three per cent 
 rebate. The business is not large enough to bring the 
 buyers to Hammonton and thus enable the Union to 
 sell its produce on the spot, as the Delaware Fruit Ex- 
 change was able to do the perfect system. (See Page 
 213.) A superintendent, two clerks, five loaders and 
 six dispatch-carriers are employed during the shipping 
 season. 
 
 The contract with city commission men provides that 
 they shall report all sales by wire immediately. Thus 
 Monday's shipments, sold early Tuesday morning in 
 Philadelphia, New York and Boston, are reported at 
 the special telegraph office in the union store at Ham- 
 monton by half past nine o'clock Tuesday morning. 
 These reports are rushed to the printing office and by- 
 eleven o'clock are printed in the form of a daily bulletin, 
 which also contains any notices to shippers or commis- 
 sion merchants that the officials of the Union wish to 
 make. As soon as off the press the bulletins are distrib- 
 uted by boys on bicycles or horseback to every member 
 of the Union, some of whom are five miles distant. 
 Thus by dinner-time every fruit-grower in the neighbor-
 
 HOW TO COOPERATE. 
 
 hood who is a member of the Union knows jast how the 
 markets were that morning, and can make up his mind 
 which markets he will consign to on the trains going 
 out in the afternoon. This exceedingly valuable service 
 costs the union about four hundred dollars, or about 
 seventy-five cents per member, and is well worth it. A 
 copy of the bulletin is put in the berry crate containing 
 freight manifest that goes with each shipment to every 
 agent. This very practical and valuable feature will be 
 better appreciated by reprinting a sample copy. 
 
 DAILY BULLETIN. 
 
 Published by the Fruit Growers' Union 
 
 And Cooperative Society, Limited. 
 
 Republican Print. Hammonton, N. J. 
 
 Time for Iteceipt of Berries. 
 
 For Boston, Providence, Scranton. and point* north of New York: from 
 
 Union Depot at 8.00 A. M. : from Elm, 8.45. 
 For New York and Newark : tfnion Depot, 5.50 P. M. ; Elm, 6.15. 
 For Plilladelphia: Union Depot, 7.50 p. M. ; Elm, 7.00. 
 Train on Sea Isle City Road will leave Folsom at 5.00 P. M., connecting 
 
 with New York and Philadelphia. 
 
 Vol. XI, Tuesday, June 30, 1891. No. 30 
 
 Boston. 
 
 Bigelow & Co. Del. Blacks selling 15-18 prospect good for fine stock 
 
 Rice & Hoi way. Del. Blacks sold to-day 10-12 ^eds pints 6 
 
 Kimball & Co. Reds good order sold pints 8 Del. Blanks selling 14-15 
 
 New York. 
 
 Combes & Co. Reds pints 5-6 Caps 7-8 ffucks 12-14 
 
 Cole & Co. Caps quarts 7-8, pints 4 Reds pints 6-8 
 
 Bogart & Son. Sold Reds quarts 8-12 Caps 6-8 
 
 Funnan & Co. Caps sold 3J-4 Reds 5-6 pints 
 
 W. L. Snyder. Reds pints 5-6 Cups 4, quarts 7 selling good 
 
 Melick & Co. Reds 5-& Caps 4 pints gowl demand 
 
 Wygant. Reds pints 5 Caps pints 4, quarts 7 Blacks 9-10 
 
 I>hiladelphia. 
 
 Adams. heds9-i0 Caps 5-6 Blacks \0 Early Harvest 
 
 MeCully & Co. Reds 8-12 Caps 5-7 Blacks 10-15 Better to-morrow 
 
 Mover & Co. Reds 10-12, five crates 8 Caps 5-7 Blacks 15 
 
 Sit ley. Caps 5-6 Reds 8-12, mostly 10 
 
 Hhillingsburg&Co. 8o\d Reds 4-5 Caps 3 Blacks 12 Blacks 10 
 
 Batten & Co. Caps 6, few 4 lleds 8-12 quarts Hucks 12 
 
 Redfield & Son. Caps sold 5-6 Reds 8-12 quarts Hticks 15 
 
 Mcl><>ugal Bros. Reds sold 8-12 Caps 5-6 
 
 Kienzle. Reds 8-12, mostly 10 Caps 5-6 out demand good. 
 
 Cahall & Baynard All sold HedsU-S Caps 5 
 
 H. B. Smith & Co. Reds 12-14, few 10 Caps 6-7 Hucks 12 Blacks 11 
 
 Wescoat. Caps 5-6 Reds 8-12 Hucks 12 out ship heavier 
 
 R. P. Stewart & Co. Reds 12-10, four crates 8 Caps 6, three crates 4
 
 FAEMERS' AND PEOPLE'S EXCHANGES. 339 
 
 Roberts & Andrews. Sold Reds 9-10 Corps 5 quarts demand good 
 Emley. Strawberries 5-7 Reds 8-14 Caps 5-6 out 
 Sawyer & Co. Reds 8-10 Caps 5-6 quarts 
 Wick & Bro. Sold Reds 9-12 Caps 6-7 Blacks 10 
 Conway & Co. Caps 3-4 ^eds 4-6 
 
 Newark. 
 
 Debow & Co. Caps pints 3-4 Reds 7-8 
 Kaiser Cops pints 4-6, quarts 8 iJeds pints 7 
 McNair. Caps sold 4 /feefs 5-7 piuts mostly small and poor 
 Pittsburgh. 
 Baxter & Renton. Raspberries scarce 10-12 Blackberries same 
 
 Sliip early train 
 
 Ship for Boston and other eastern points this afternoon. Closing time 
 
 same as for New York, 5.50 at Union ; at Elm, 6.30. 
 No shipments Sunday by freight or express. You can ship to Philadel- 
 
 ghia by express Monday morning at 5.00 o'clock, from Twelftli 
 treet. Car will be placed and berries received Sunday afternoon. 
 The following names have been added to the list of Commisison houses: 
 
 Albert Adams and Nock, Whealton & Co., both of Pliiladelphia. 
 We expect to have Refrigerators for Philadelphia, New York and Bos- 
 ton, Saturday afternoon. They will be iced so that they can be 
 loaded any time during the day on Saturday. 
 
 NOTICE TO ELM SHIPPERS. On and after this date the closing time 
 
 at Elm for Philadelphia will be 7 o'clock. 
 The Boston train will go on to-morrow Wednesday July 1st. There 
 
 will be a Refrigerator for Boston. |!^"Remember tliat the closing 
 
 time for this train is Eight o'clock, sharp. You MUST be on time 
 
 for the Boston train ; we cannot hold it. 
 A REQUEST. Commission merchants would prevent possible errors if 
 
 in their telegrams they would designate Black Caps as Caps; Red 
 
 Raspberries as Reds; Blackberries as Blacks; Huckleberries as 
 
 Hucks. Please use these convenient terms, 
 
 And oblige THE PRINTER. 
 
 The Lessons of it All. The people and locality 
 are not specially adapted to cooperation. There is not 
 as much social intercourse among these people as is com- 
 mon in many other places. The farmers are mostly 
 intelligent, but not extraordinarily so. The presence of 
 an increasing number of Italian farmers would also 
 appear to be unfavorable to the effort, but does not prove 
 so. One of the directors is an Italian, and a level-headed 
 farmer and fruit-grower he is. E. K. Sproul has been 
 the president and Z. U. Matthews the secretary and 
 manager from the start, both being practical farmers. 
 Mr. Matthews, who adorns our frontispiece, had some 
 mercantile experience before he went to farming. The 
 other directors are also farmers L. H. Parkhurst, 
 Charles AUbright, Thomas Rogers, H. J. Monfort, 
 Henry G. Newton, Albert S. Gay, Matteo Campanella.
 
 240 HOW TO COOPERATE. 
 
 The weakest point in the whole affair is the growing 
 dependence upon the manager, who is constantly over- 
 worked. The auditors fail to do their duty with the 
 searching thoroughness practiced by the Arlington audi- 
 tors. (See Pages 65 and 66.) While the books are 
 well kept, an unsparing audit is specially necessary in a 
 country society to maintain the esprit du corps and strict 
 adherence to best business principles. Another weak 
 point is the failure to make quarterly reckonings, the 
 excuse for which is the great work of taking an inven- 
 tory. To this may be added the dangers of the credit 
 allowed. 
 
 No institution can be perfect, and aside from these 
 points there is little to criticise. The annual reports 
 printed in pamphleb form are models of clearness, and 
 are also of value for the practical information they give 
 to fruit-growers, and the helpful hints offered to coop- 
 erators by President Sproul. 
 
 THE people's exchange. 
 
 The feasibility of broadening out the cooperative store 
 in cities and towns, so that it shall be both a market for 
 farmers and surrounding producers as well as a center 
 of distribution for the supplies of its members, is self- 
 evident. It would differ in detail only from the asso- 
 ciations previously described, and therefore need not be 
 treated in full.
 
 CHAPTER X. 
 women's exchanges and how they mat be run. 
 
 Helen Campbell, the leading authority on this form 
 of practical cooperation for women, has written success- 
 fully for this work the following account : 
 
 In the beginning of work in this direction it was 
 taken for granted that only the largest cities could afford 
 a market for the articles sent in. To the casual obserrer 
 entering for the first time a Woman's Exchange, it 
 seemed to contain only masses of ornamental work, from 
 a decorated rolling pin, or boot jack, up to an embroid- 
 ered portiere, and the conclusion naturally was, that 
 the new opening for women was simply one more means 
 for the dissemination of bric-a-brac, and could be patron- 
 ized only by the very rich. This for the outward de- 
 partment, but closer examination soon showed that the 
 real source of income lay in the order department, with 
 its supplies of dainties and substantial of every variety. 
 Delicate cake, pastry and rolls in plain view, were only 
 the suggestion of what is actually receired and delivered, 
 from salads and pickles to clear soup jellied, or any 
 desired dish beyond the power of the ordinary plain cook. 
 
 Provisions of this order are in demand in every town, 
 above all where good cooks are hard to find, and the 
 overworked housekeeper would entertain with as little 
 trouble to herself as possible. This always increasing 
 class guarantees a steady sale for certains forms of well- 
 prepared food, and for wealthier customers, hampered 
 hardly less by the present difficulties of domestic service. 
 
 16
 
 242 HOW TO COOPERATE. 
 
 special orders for special occasions increase the possibili- 
 ties for earners. 
 
 For the history of individual exchanges, send to any 
 one on the list in the appendix. The New York Ex- 
 change was the pioneer in the work, and has told its 
 own story so frankly and fully that each new comer 
 knows the rocks and shoals to be avoided, and can send 
 out its prospectus with a clear knowledge of every vital 
 point. 
 
 Two Sets of Duties are to be considered ; those of 
 the organizers of the Exchange, and those of the con- 
 signers. For the first, much of the work is necessarily 
 voluntary, though the larger Exchanges are finding it 
 well to pay good salaries to competent managers. In 
 such cases a larger entrance fee is charged, that for New 
 York being five dollars a year, and ten per cent on the 
 price received for the goods. Philadelphia, where rents 
 are far lower, has an entrance fee of only two dollars, 
 with the same commission, while in smaller cities many 
 charge but one. In many cases the philanthropic com- 
 mittee of the "Woman's Club hold themselves responsible 
 for the first year's rent, and this gives a feeling of se- 
 curity for the first few uncertain months. It has been 
 found, however, in the ten years' work in this direction, 
 that even the first year will often cover expenses, and 
 the second leave a small surplus for improvement of 
 methods. 
 
 In a town of any size it has been found best to secure 
 a whole house, and make it, as far as possible, pay its 
 own rent. There is always some widow to be helped, 
 who will, for the rent of a room or two, act as janitor 
 and keep halls, etc., in order, while the upper rooms can 
 be rented to young women who want rooms. This 
 leaves vacant one or two floors. The front room of the 
 first must be fitted up with glass cases, where delicate 
 work can be hung in plain view yet free from dust, with
 
 women's exchanges. 243 
 
 the usual arrangements of a counter and cases upon it 
 for the display of smaller articles. Here is the post for 
 the business manager, who, if the Exchange is small, is 
 bookkeeper, cash girl and doer-up of all packages, as 
 well as in charge of all correspondence, this last being 
 the heaviest tax on time and patience. Success speedily 
 allows a larger force, but everything depends on the 
 quality of the business manager, who, after a clear and 
 full understanding with the various committees in 
 charge as to what is expected of her, should be left 
 free and untrammeled by unnecessary suggestions or 
 interference. 
 
 Desirable as it always is to have the premises entirely 
 under control of the officers, a whole house is not abso- 
 lutely necessary. On the contrary, an Exchange can 
 begin with only two rooms, and the cheapest of shelving 
 and general fittings, curtains taking the place of glass 
 doors to cases, and everything being conducted on the 
 principle of spending not a cent that can be avoided. 
 But an attractive room draws custom, and should be 
 considered a necessary part of the investment; and to 
 secure this, several very prosperous Exchanges have 
 begun with a loan from the Woman's Club, in form of a 
 subscription from each member, who looked upon it as 
 one of the most efficient means of teaching women how 
 to help themselves, and preferred also to keep the entire 
 machinery for work in the hands of women. 
 
 In Prosperous Exchanges, almost without excep- 
 tion, it has been found best to open, in connection with 
 the department of food, a lunch room, in which the 
 more perishable kinds can be utilized. Several now 
 include a restaurant, and that for Philadelphia has 
 incorporated with it the cooking school, and plans also 
 for a training school for domestic service. 
 
 All this is beyond the first aim of smaller ones, but 
 the lunch room is perfectly practicable. It requires, in
 
 244 HOW TO COOPERATE. 
 
 the beginning, simply several small tables, with the 
 linen and service for each of good quality. Pretty china 
 is now so inexpensive that it is easy to provide each with 
 a service as attractive as the home table offers. Freshly- 
 made tea in a little Japanese pot, and the homemade 
 rolls and cake, or bonillon, salads and savories, make a 
 lunch far more desirable than anything to be found in 
 the ordinary restaurant. Often a certain number of 
 business men agree to lunch at the Exchange, and this 
 is the nucleus of a restaurant which, if well managed, 
 becomes a source of immediate profit. 
 
 The main point, and one never for a moment to be 
 lost sight of, is the keeping up the standard to the high- 
 est point of excellence. It is far better to have a very 
 limited bill of fare, giving certain dishes to certain days, 
 and insisting that each shall be perfect of its kind, than 
 to have a long list, many items of which are doubtful. 
 
 For a restaurant on this scale a cook and one waiter 
 are likely to suffice, and this cook, who has to think of 
 but one meal's necessities, is most often a consignor, 
 who finds that more money can be made by taking 
 charge of such a department than by simply sending in 
 goods for sale. 
 
 The Organization. The duty of any committees in 
 general charge is to fix the scale of prices, draw up gen- 
 eral rules for the consignors, and have oversight of the 
 divisions of work. The usual officers are, president ; as 
 many vice-presidents as may be decided upon, from one 
 to ten being equally in order ; a treasurer and assistant 
 treasurer, a recording and corresponding secretary, and 
 an auditor. This is all voluntary work. There are 
 usually standing committees on nominating, finance, 
 publishing, house, lunch or restaurant, domestic art, 
 needlework, bureau of information, etc. Each one of 
 these has its chairman, upon whom, most often, the 
 chief work devolves. That a good deal of work must
 
 womek's exchanges. 245 
 
 be done must be taken for granted, especially in the 
 beginning, since often committees need education no 
 less than consignors, but every month lessens difficulties 
 and brings things to a better and more genuine business 
 basis. 
 
 The severest and most trying labor falls upon the 
 adjudicating committee ; those on art needlework and 
 the other supplies sent to the Exchange. So many sam- 
 ples sent are poor in design and execution that it re- 
 quires educated taste as well as firm decision to speak 
 the full truth, and refuse to open with specimens that 
 could only bring discredit. This is, however, the first 
 essential, and no Exchange can prosper which ignores 
 this, or allows place to inferior work in any one of its 
 departments. 
 
 It is possible, in the first beginnings of a small Ex- 
 change, that the work of the manager of sales may for a 
 time have to be voluntary. Various reports record sev- 
 eral changes of agent a year, this arising from the fact 
 that more lucrative employment came to their manager 
 and they parted with her because it was part of their 
 work to aid women in this way. By the end of the first 
 year the smaller exchanges can, however, pay a fair wage 
 to a manager, a superintendent of lunch and her assist- 
 ant, and a delivery boy, with provisions for laundry 
 work and cleaning. 
 
 Constant interest, wise supervision, efficient service, 
 and contentment with small profits, added to the 
 promptest of payments to consignors, make the duty of 
 any Exchange. Rigid rules are necessary to secure these 
 ends, and we turn now to the demand to be made upon 
 all consignors, with the general directions applicable to 
 all who forward goods. 
 
 The Consignor who objects to paying a deposit as 
 well as a percentage on sales must recollect that there 
 are inevitable expenses which, if not met in this way.
 
 246 HOW TO COOPERATE. 
 
 must be met by charity. A yearly fee is therefore the 
 only really self-respecting method to adopt, and it should 
 be paid without hesitation. In most Exchanges samples 
 of the work to be done are now required. This is an 
 advantage to the consignor, who gets the benefit of criti- 
 cism on her work and is thus enabled to correct defects 
 and reach a higher standard than would have been possi- 
 ble without it. It is now taken for granted that wax 
 and feather flowers, hair and perishable leather work, 
 spatter and splinter work and cardboard are all unsalable 
 and cannot be accepted. 
 
 Express or mail charges must all be paid in advance, 
 and no articles are now registered on the books till this 
 is done. Every article sent in by consignors must have 
 on it a tag containing the name of article, number and 
 price, these prices being subject to approval by a compe- 
 tent committee. The consignor must also name the 
 lowest price she will take, this to be, in every case, 
 respected by the committee. The name, address and 
 list of articles sent must be written plainly and accom- 
 pany each consignment. 
 
 Payments are generally made twice a month. Arti- 
 cles remaining unsold at the end of a year must be 
 returned at owner's expense. Woolen goods are seldom 
 received on consignment between June and October, 
 though orders for them are taken at any time. Stamps 
 must always accompany letters of inquiry, and consign- 
 ors who wish articles returned by mail must take all risks. 
 
 These are the general rules covering consignments in 
 either the art or needlework departments of any exchange. 
 In the domestic departments experience has compelled 
 regulations no less minute. Consignors of preserves, 
 pickles, etc., must conform to regular sizes of jars, tum- 
 blers, bottles, etc., viz., quarts, pints, half pint and 
 quarter pint tumblers, quart and pint bottles. Metallic 
 covered jars are no longer received, glass tops being in
 
 W0ME2S'S EXCHANGES. 247 
 
 all cases required. Each box must contain an invoice 
 of contents, and a duplicate invoice must be sent by 
 mail. If fruit is discovered to be worked or spoiled, 
 notice is sent the consignor, after which time tho respon- 
 sibility of the Exchange ceases. 
 
 An understanding is required between the head of a 
 department and a consignor as to when cake and other 
 edibles are to be considered stale, after which time the 
 Exchange is not responsible. Ingredients of mixed 
 pickles and other articles must be given, in order to 
 make intelligent sales. These are the general rules gov- 
 erning all consignments, and are the result of long 
 experience as to the fairest methods of dealing with both 
 customers and consignors. 
 
 What W^ill Pay Best. For consigners themselves, 
 let it be understood in the beginning that art work of 
 any description, unless of most exceptional excellence, 
 will bring but poor return. It is perfect cake, preserves, 
 rolls, anything in the natui'e of food that is most likely 
 to mean a good income. One woman, who supplies the 
 New York Exchange with pies, has for several years 
 made over a thousand dollars income; but even she, 
 with a natural gift for the work, had to be taught the 
 necessity of making each batch alike. Women, unless 
 special training has been given, are apt to think that it 
 makes little difference if a batch of cookies are all une- 
 qual in size, even when to be sold by the dozen, and 
 they are equally indifferent to exact proportions of in- 
 gredients. Every Exchange becomes thus a training 
 school, and often has a list of consignors who are indig- 
 nant at criticism, and who accuse managers of favorit- 
 ism and partiality. Managers are human, and this may 
 in rare cases be true, though it is diflScult to see how, 
 since the one desire with all is to see the best work in 
 their cases. 
 
 Let the consignor then be certain that her product is 
 perfect as hands can make it; her loaves of bread or
 
 248 HOW TO co5pbratb. 
 
 cake always equal in size and weight, and her cookies or 
 small cakes no less so. If not near enough an Exchange 
 to visit it and find out details as to packing, it would be 
 well to remember that it is these finishing touches that 
 distinguish skilled work from unskilled. It is perfectly 
 possible for the home worker to learn them all, and thus 
 have the skilled confectioner's finish, with the flavor 
 which only home cooking knows. 
 
 When a business is made of it, there will be a full supply 
 of boxes, cotton-batting, "excelsior" and waxed paper. 
 A beginner who has not these, and wishes to send a loaf 
 of cake experimentally, must choose a box that has no 
 scent of former contents. The cake should have been 
 baked with thick paper under and at the sides, and this 
 is not to be removed, as it will help to keep all in shape. 
 Lay a sheet of white paper at the bottom of the box and 
 place the loaf upon it. Cover the top with another 
 sheet, and on this put a layer of cotton. Now pack the 
 box very carefully with bits of old newspapers first, and 
 then whole ones, till it is impossible for the cake to 
 move. A wooden box is always best. If of paper, it 
 would be well to put several newspaper layers at the bot- 
 tom before laying in the white paper. 
 
 If small frosted cakes are to be packed, follow much 
 the same directions. Lay them in carefully, cover with 
 waxed paper and then with cotton, treating each layer 
 in this way till all are in. Excelsior will fill all the 
 chinks better than newspaper, but these will answer if 
 the former is not to be had. Even with cookies it is 
 worth while to take almost the same pains, since a sale 
 often depends on their having unbroken edges and a 
 fresh appearance. 
 
 Specialities Most Profitable. If possible every 
 consignor to a Woman's Exchange should have some 
 specialty. The choicer forms of cake are always in 
 demand, yet most choose the plainer sorts through dis-
 
 women's exchanges. 249 
 
 trust of their power to make anything better. A few 
 failures are often the price of success, and what seems 
 waste really the tuition fee. To be carefully slow and 
 "fussy," as some of the processes seem, will mean 
 quicker success in the end. There are various books 
 which serve as aids, notably those of the late Catherine 
 Owen, who made a specialty of Exchange work. Each 
 locality has its own tastes, and a visit or a letter to the 
 nearest Exchange will show what is most required there. 
 Let the work, of whatever nature, be as nearly perfect 
 as can be compassed, and there need be small fear of not 
 receiving a fair return for all the labor expended. 
 
 Finally, let the consignor of preserves, etc., remember 
 that the matter of putting up is a most important one. 
 A carelessly filled jar with a label askew repels the buyer, 
 accustomed to the neat methods of the professional can- 
 ner or preserver. It is quite worth while, when well 
 launched, to have a special label, which must be gummed 
 on as carefully as the professional ones. Evenness of 
 quality, such as distinguishes English jams, pickles, etc., 
 is one of the first necessities, and every ingredient used 
 should be of the best. Miss Martin's work in these 
 directions is known by every first-class grocer in the 
 country, and it is perfectly possible for other women to 
 do equally well. 
 
 Two balance sheets of successful Exchanges are given ; 
 one an example of work in a large city ; the other show- 
 ing what may be done with small means.
 
 260 
 
 HOW TO COOPERATE. 
 
 ANNUAT BBPOBT OF THE PHILADELPHIA WOMEN'S EXCHANGE, 
 
 RECEIVED. 
 
 Cash balance, Feb. 28, '90. $370.10 
 
 Needlework 7,912.26 
 
 Art work 8,177,77 
 
 Domestic department 3,400.59 
 
 Bouillon, coffee, etc 139.08 
 
 Embroidery silks 66.47 
 
 Rentof rooms 1,600.80 
 
 Consignors' tickets 744.00 
 
 Life membership 60.00 
 
 Annual subscriptions 680.00 
 
 Club tickets 60.00 
 
 Donations 821.28 
 
 Entertainments 214.75 
 
 Training school classes. . . 189.54 
 
 Incidentals 45.75 
 
 Fines 13.50 
 
 Interest on deposits 24.62 
 
 Ml.!cellaneous 99.24 
 
 Registry bureau 1,590.50 
 
 Table Talk and House- 
 keeper's Weekly 34.68 
 
 $23,234.93 
 
 PAID OUT. 
 
 Consignors $14,562.14 
 
 Rent 3,500.00 
 
 Salaries 2.094.17 
 
 Furnishing and repairs. . . 448.87 
 Stationery and printing.. 547.46 
 Table Talk and House- 
 keeper's Weekly 34.36 
 
 Insurance 17.50 
 
 Miscellaneous 108.55 
 
 Advertising 36.20 
 
 Telegrams 18.00 
 
 Training school classes... 168.00 
 
 Coal and wood 94.81 
 
 Gas 175.20 
 
 Lunches of employes 286.30 
 
 Incidentals 207.99 
 
 License for registry bu- 
 reau 50.00 
 
 Extra to employes 65.50 
 
 Cash balance, Feb. 8, 1891. 819.88 
 
 $23,234.93 
 
 ANNUAL REPORT OF THE HARLEM (N. Y.) EXCHANGE. 
 
 RECEIVED. 
 
 Cash balance, April 1, '89. . . $96.90 
 
 Commissions 242.25 
 
 Subscribers and donors 870.00 
 
 Consignors' subscriptions.. 56.50 
 
 Gypsy festival 625.14 
 
 Donations 13.50 
 
 Library 8.00 
 
 Fines 7.55 
 
 Register 1.00 
 
 Interest on deposit 21.56 
 
 Entertainment at exchange. 110.00 
 
 $2,052.40 
 
 PAID OUT. 
 
 Rent $600.00 
 
 Salaries 791.56 
 
 Insurance 2.10 
 
 Fuel 22.50 
 
 Gas 16.61 
 
 Sundries 45.56 
 
 Printing, etc 28.30 
 
 Postage 7.61 
 
 Cash balance, April 1, 1890. . 538.13 
 
 $2,052.40 
 
 SUPERINTENDENT'S REPORT FROM SALESROOM. 
 
 May 1, 1888 to April 1, 1889. . 
 April 1, 1889 to April 1, 1890. 
 
 Receipts. 
 
 $2,075.87 
 2,407.16 
 
 Year. 
 
 Bread 
 and Cake. 
 
 $ 814.71 
 1,232.70' 
 
 Pre- 
 serves. 
 
 $254.56 
 338.59 
 
 Fancy 
 
 Articles. 
 
 $536.95" 
 
 555.40 
 
 Orders. 
 
 tl71.45 
 182.33 
 
 Miscella- 
 neous. 
 
 ""$298.20 
 108.14 
 
 Paid Con- 
 signors. 
 
 $1,867.92 
 
 To tal. 
 
 $2,075.87 
 2,407.16 
 
 THE SPRINGFIELD (ILL.) WOMEN'S EXCHANGES sales in 1890 WCrC 
 
 $9,698, of which $7,600 was returned to consignors. The balance went 
 for expenses, the largest items of which were $643 for employes and 
 $380 for rent. The edible department was the most successful, having 
 had passed over Its counters over $7,000 worth of goods, including 
 white bread, 3,252 loaves; brown bread, 2,456 loaves; cake, 2,860 loaves; 
 rolls, 6,128 dozen; cookies, 1,873; tea cakes, 2,073 dozen; doughnuts, 
 3,.')95 dozen; pies, 1,907; beans, 999 crocks; potato chips, 710^ pounds; 
 mincemeat. 590 pounds; plum puddings, 296; cottage cheese, 397 quarts. 
 In the lunch department, 4,537 meals were served at an expense of 
 41,020, leaving $92 net profit.
 
 women's exchanges. 251 
 
 The Proper Rules may be modeled on those of the 
 Harlem (N. Y.) Women's Exchange. It will be seen 
 that women in small places and out in the country can 
 get the advantages of such cooperation as well as those 
 in cities. The women members in cooperative societies 
 should have a branch of this nature established in con- 
 nection with it for their benefit. 
 
 RULES FOR A WOMAN'S EXCHANGE. 
 
 1. We receive work through a subscriber to the funds of the society 
 to an amount not less than five dollars for the current year. 
 
 2. Each subscriber of five dollars may enter the work of three (3) 
 persons for one year. Consignoi-s not using subscribers' ticket may 
 enter work for two dollars per year. 
 
 3. Our commission is ten per cent on the price received. 
 
 4. All work is received subject to the approval of the managers. 
 
 6. Wax and feather flowers, hair, leather, splatter and splinter, and 
 cardboard work are too perishable and unsalable to be accepted. 
 
 6. Articles will not be registered until express and mail charges 
 have been paid on them. Articles are registered between the hours of 
 11 and 4. Packages left at other hours must be marked by consignor, 
 with name, address and price. 
 
 7. Clonsignors must call or send for their articles at the expiration of 
 one year from the date of their entry. If not sent for within a month 
 after that time, the Society will not hold itself responsible for them. 
 No articles can be withdrawn between September 15th and 27th. Arti- 
 cles cannot be re-entered. Articles sent for by a consignor must be 
 described. 
 
 8. The Society does not hold itself responsible for losses, having 
 taken all reasonable precautions against flre and theft. 
 
 9. All letters containing information about articles sent to the Ex- 
 change should be addressed to the Society, with stamp inclosed for 
 reply. 
 
 10. Articles which ladies are obliged to part with are received only 
 upon the recommendation of an officer of the Society, and under the 
 rules which are applied to other consignors. 
 
 11. In the cake and preserve department there is a standard, and 
 none can enter cake or preserves without firet sending samples of their 
 work. Pickles, preserves and jellies are sampled every year. 
 
 12. No preserves are received before October 1st or after April 1st. 
 
 13. No worsted goods are received after June 1st until October 1st. 
 
 14. Consignors desiring articles returned by mall must take all risks, 
 and must give three days' notice for withdrawal of any article. 
 
 15. Work is not received from gentlewomen whose circumstances do 
 not make it necessary for them to dispose of their handiwork, except 
 where the proceeds are tx> be devoted to a charitable purpose. 
 
 16. Cash payments are made on Saturdays to consignors In the Cake 
 and Preserve Department, and on Wednesdays to all other consignors. 
 
 17. Consignors must put their own prices upon the articles they send.
 
 CHAPTER XL 
 
 THE FUTURE OF COOPEEATION". 
 
 The Immediate "Work for wage-earners and farm- 
 ers, producers and consumers, is to grasp the possibili- 
 ties of cooperation. They should educate themselves in 
 its principles, and then begin in a small way to carry 
 them out. A start of the right kind, under the hum- 
 blest auspices, is far better than more pretentious and 
 usually injudicious effort. 
 
 Put in practice in this way, past success and experience 
 will make the future of cooperation comparatively sure 
 for those who practice it in a genuine manner and with 
 proper management. But the future holds no induce- 
 ments for porely conducted or mismanaged cooperation. 
 
 A Cooperative Congress. The great step that 
 should now be taken is for cooperators to get together. 
 Weak efforts in this direction have already been made, but 
 a comprehensive union is needed that shall bind together 
 the distributive societies and enable them to assist each 
 other. With communication established between coope- 
 rators, not only distributive societies but the other forms 
 of cooperation described in this Manual, it will be 
 feasible to hold during the World's Fair at Chicago in 
 1893 the first cooperative congress in America. Such 
 a convention, with its different sections for special phases 
 of associated effort, and its mass meetings for the con- 
 sideration of topics of general interest, would immensely 
 stimulate the progress of true cooperation. 
 
 Nationalism and Socialism It is doubtless true 
 that the general success of cooperation must gradually 
 
 252
 
 women's exchanges. 863 
 
 precede much of the nationalistic and socialistic propo- 
 sitions of the day. Whether cooperators, having proved 
 the utility and independence of self help, will then 
 desire to put it on a state or national basis, as advocated 
 by the nationalists, time alone will reveal. 
 
 Certain it is that cooperation is destined to bring 
 producer and consumer comparatively close together. 
 It will enable farmers to carry out many long-cherished 
 schemes for marketing their produce and buying their 
 supplies. It will enable the wage-earner and all con- 
 sumers to save enormous sums with comparatively little 
 effort, which may be profitably used by wage-earners 
 becoming their own employers in productive industry. 
 Public sentiment in favor of cooperative thrift will take 
 the place of the present general tendency to extravagance 
 in small matters. By diverting the profits of industry 
 from the strong box of monopoly into the pockets of the 
 people, cooperatio will go far to solve the otherwise irre-n 
 pressible conflict between labor and capital. 
 
 With Past Experience in this country and England 
 combined with the superior energy and enterprise of the 
 American people, cooperation is destined to make far 
 greater progress on the American continent than it has in 
 other countries. This statement is predicated on the 
 idea that our people will be satisfied to undertake 
 cooperation in a small way instead of beginning at the 
 top, as has been the characteristic of the efEorts in this 
 direction heretofore. 
 
 Where Existing Laws are unfavorable for true 
 cooperation, proper legislation can be obtained. Certain- 
 ly the capital of most cooperative societies should be 
 exempt from taxation, as are the savings banks in 
 many of our States, for the society is a savings bank of 
 the most effective kind. Neither should ignorance or 
 modesty on the part of our people prevent their getting 
 what legislation is necessary. Some States already have
 
 364 HOW TO COOPERATE. 
 
 excellent laws (see Appendix) while the jnst and equi- 
 table principles of true cooperation commend themselves 
 to the most intelligent men, whose assistance in the 
 movement can generally be secured. 
 
 The Future of Cooperation is thus fraught only 
 with good to the individual and to the State. Its star is 
 in the ascendancy, and nothing can stay its course.
 
 APPENDIX. 
 
 1. "Working By-Laws and Model Riiles. 
 
 2. Descriptive Directory of all Classes of CoSperative Enterprises. 
 
 3. Laws Relative to Cooperation. 
 
 4. Blbllograpliy of Cooperation. 
 
 5. Advertisements. 
 
 255
 
 CONTENTS OF APPENDIX IN DETAIL, 
 
 1. MODEL RULES AND WORKING BY-LAWS OF THE Pages 
 
 Rochdale Equitable Pioneers 258-274 
 
 Allegan County Cooperative Association 274-277 
 
 Johnson County Cooperative Association 277-282 
 
 Lyons Cooperative Association 282-287 
 
 Texas Cooperative Association 287-200 
 
 Fruit Growers' Union, Hammonton, N. J 290-293 
 
 California Fruit Union 293-298 
 
 Kansas Alliance Exchange Company 298-301 
 
 Grangers' Bank of California 301-304 
 
 Farmers' Mutual Fire Insurance Company 304-310 
 
 2. Descriptive Directory of Cooperative Enterprises. 
 
 Detailed Accounts of Many Successful Stores and other con- 
 cerns (see Index) 311-325 
 
 Mutual Fire Insurance Companies, List of 325-328 
 
 Creameries, Cooperative Directory of 328-329 
 
 Cheese Factories, Associated, List of 329-330 
 
 Cooperative Banks, or Building and Loan Associations 330-332 
 
 Women's Exchanges, Directory of 332-a33 
 
 3. Laws Relative to Cooperation in the Respective States 
 
 and Territories (see Index) 334-342 
 
 4. Bibliography of Cooperation 343-346 
 
 6. Advertisements. 
 
 256
 
 [. MODEL RULES AND WORKING BY-LAWS. 
 
 THE EOCHDALE EQUITABLE PIONEERS' SOCIETY. 
 
 This society being the originator of the Eochdale sys- 
 tem of cooperation, it has always aimed to be a model. 
 We therefore publish in full its by-laws or rules, from 
 its ofBcial record printed, in 1889. They contain many 
 points that will be studied with interest and profit by 
 all cooperators. Some of their provisions are made to 
 comply with the requirements of the English law, and 
 therefore may not be adapted to American wants. The 
 Kochdale rules are also longer and more numerous than 
 our American societies employ. (The shilling is com- 
 puted at twenty-five cents and the pound at five dollars.) 
 
 Instructions to Members. 
 
 The candidate for menibersliip wiU require to come and sign the 
 declaration and pay a deposit on the shares of twenty-five cents or 
 more. 
 
 Pass-books mnst be brought to the office, with metallic purchase 
 tokens, in the first weeks of March, June, September and December of 
 each year. 
 
 None but five dollar and twenty-five dollar tokens taken at the office 
 The times for changing the smaller values can be ascertained by 
 inquiry at the shops. 
 
 Members desiring to make withdrawals will be required to come 
 themselves, or send a note by the person authorized to receive the 
 money, such note to bear the bona-fide signature of the member. No 
 member can withdraw liis or her share account below one dollar with- 
 out withdrawing altogether and forfeiting the sum of fifty cents from 
 the amount in the book, and in this case it will require the member to 
 attend at the office. 
 
 Interest is allowed on all contributions of even pounds from the 9th 
 of each month, but no Interest is allowed on sums withdrawn for the 
 quarter in which they are withdrawn. 
 
 The office is open every day for the receipt of contributions and the 
 payment of withdrawals, from 9 a. m. to half an hour before the tinjc 
 for closing the shops. 
 
 N. B. No contributions are received from the Tliursday before the 
 stocktaking until after the stocktaking day. The day for taking stock, 
 etc., may be found rT> xt^ferring to the Society's Almanac. 
 
 17
 
 Rules of the Rochdale Equitable Pioneers. 
 
 Nams, Object, and place of Office. 
 
 1. This society shall be called the "Rochdale Equitable Pio- 
 NEEKs' Society Limited." 
 
 2. The object of this society is to carry on the trades of general deal- 
 ers, manufacturers, and the buying and selling of land. 
 
 3. The registered office of this society shall be at the society's store, 
 in Toad-lane, Rochdale, in the county of Lancaster [England], where 
 all the books of accounts, securities, and documents of the society 
 shall be kept, other than such, if any, as are required for carrying on 
 business on account of the same elsewhere ; but the place of business 
 may be altered by the committee of management. 
 
 4. In the event of any change in the situation of the registered office, 
 notice of such change shall be sent within fourteen days thereafter to 
 the Registrar in manner and form provided by the Treasury Regulation 
 in that behalf. 
 
 Admission of Members. 
 
 6 (o) The society shall consist of the present members, and of all other 
 persons who sliall afterwards be admitted in the following manner: 
 
 (6) A person wishing to become a member must apply at the office 
 to the secretary or other officer appointed. He must state his name, 
 residence, and occupation, and be proposed and seconded by two mem- 
 bers of the society. He must also (at the time of application) sign a 
 declaration stating his willingness to abide by the rules, and take out 
 not less than five shares, and pay a deposit of not less than one shilling 
 on account of the said shares, together with an entrance fee of one 
 shilling, and threepence for a copy of these rules. Complete lists of 
 the names, residences, and occupations of all persons who have ap- 
 plied to become members in manner hereinbefore stated, shall be sub- 
 mitted to the next weekly meeting of the committee of management 
 for their approval ; and if any person whose name is on the said list 
 shall be objected to by the majority of the committee of management 
 then present, the name of the said person shall be erased from the list. 
 These lists, attested by the signatures of the president and secretary 
 for the time being, shall be hung up in the society's Central Newsroom, 
 for the inspection of the members three clear days at least prior to tlie 
 next monthly or quarterly meeting of members following their aji- 
 proval by the committee of management; and if at the said monthly 
 or quarterly meeting objection be taken by a majority of the members 
 present at such meeting to any of the persons named on any of tlie 
 said lists, such person or persons shall not be admitted as members of 
 the society; but all other persons named thereon shall be considered 
 
 258
 
 OF THE EOCHDALE EQUITABLE PIONEERS. 259 
 
 to be finally admitted. All persons objected to by either the commit- 
 tee of management or the members shall have the whole of the money 
 which they shall have paid into the society returned. 
 
 (c) No person shall continue to be a member of the society who 
 does not purchase from the society to the extent of at least twenty 
 dollars per annum. 
 
 (d) Any society or company registered under Act of Parliament with 
 limited liability may become a member of the society on application 
 to the committee of management, and subject to their approval, and 
 subsequent sanction of the members in manner herein provided for 
 individual members. 
 
 6. A list of names and residences of candidates for membership shall 
 be kept at the registered office of the society, and no person shall be 
 deemed a member unless, or until, his name appears on this list. And 
 the committee of management shall cause the names of all persons 
 who under these rules cease to be members to be erased therefrom. 
 
 Mode of Holding Meetings, Right of Voting, and of Making, 
 Altering and Rescinding of Rules. 
 
 7. That general meetings of the members be holden on the first Mon- 
 day in each month, at half-past seven o'clock in the evening, and that 
 the meetings on the first Mondays in January, April, July and October 
 be tlie quarterly meetings of the society, at which meetings the officers 
 shall make their reports, in which shall be specified the amount of 
 funds and value of stock possessed by the society. 
 
 8. That tlie ordinary general meetings of the members be, 1st, for 
 the approval or rejection of proposed new members; 2d, for the ap- 
 proval or otherwise of the minutes of the committee; 3d, for discuss- 
 ing the affairs of the society; 4th, for explaining the principles and 
 rules of the society; 6th, for making suggestions for the guidance of 
 the committee of management. 
 
 9. Tlie general meetings of the educational department shall be held 
 on the second Mondays in January, April, July and October, at lialf- 
 past seven o'clock in the evening,' for the purposes following: For 
 receiving the report of the committee; for empowering tlie committee 
 to make special arrangements for extending the sphere of this depart- 
 ment and for any other business connected therewith. The educa- 
 tional committee shall not be allowed to take any new premises with- 
 out the sanction of the committee ot management, or that of a quarterly 
 meeting of the society. 
 
 10. A special general meeting may be convened at any time in virtue 
 of a resolution of the committee, by a notice being posted In the meet- 
 ing room and the principal places of business of tlie society, specifying 
 the time and objects of the meeting six clear days at least before the 
 meeting; or by any fifty members, on giving in like manner six clear 
 days' notice thereof in writing, specifying the object, signed by them. 
 
 ^^No other business can be transacted at any such meeting than 
 the business specified In the notice convening it. 
 
 11 (a) All general meetings shall be held at the chief place of busi- 
 ness of the society, or at such other place; as any quarterly meeting 
 may determine; and no quarterly or special general meeting of the 
 ociety shall proceed to business tinless at least fifty members of tlie
 
 360 MODEL RULES AND WORKING BY-LAWS 
 
 society be present within one hour of tlie time of meeting, otherwise 
 such meeting, if It be tlie ordinary quarterly meeting of the society, or 
 a special general meeting, convened by the committee of management 
 shall stand adjourned to that day week ; but if it be convened by notice 
 from the members shall be absolutely dissolved. But any general 
 meeting may adjourn from time to time for any period not exceeding 
 fourteen clear days; and no meeting shall be rendered incapable of 
 transacting business by the want of a quorum after the chair has been 
 taken. 
 
 (6) No resolution of a quarterly meeting, of which one month's 
 notice shall have been given, before submitting the same for consid- 
 eration, shall be rescinded or amended except after a similar notice 
 shall have been given of the intention of proposing such rescission or 
 amendment. 
 
 12. At all meetings of the society, each member shall have one vote 
 only, except the president, who shall have a casting vote in addition 
 to his own as a member. 
 
 13. No new rule shall be made, nor any of the rules herein contained 
 or hereafter to be made shall be repealed or altered, except by the 
 vote of a majority of two-thirds of the members present and voting at 
 a special general meeting of the society, to be called in pursuance of a 
 requisition by fifty or more members, by fixing such requisition, and 
 setting forth the day of holding such meeting, in the place where the 
 business of the society is transacted, four weeks next before such gen- 
 eral meeting. No amendment of rules is valid until registered. 
 
 Appointment of Officers and Committee of Management, 
 Theib Respective Duties, and mode op 
 Conducting Business. 
 14 (a) The management of this society shall be vested in a commit- 
 tee, consisting of a president, treasurer, secretary, and eight commit- 
 tee-men. The first committee under this iiile shall be the committee 
 in office at the time of the registration of this rule. The president, 
 treasurer and secretary who shall be in office when this rule is regis- 
 tered, shall be the first president, treasurer and secretary under this 
 rule. Afterwards the president, treasurer and secretary shall be 
 elected at the general meeting to be held in the month of January, and 
 three committee-men shall be elected at each of the general meetings 
 to be held in the months of April and July; the remaining two com. 
 mittee-men shall be elected at the general meeting to be held in the 
 month of October in each year. Tlie committee in office when this rule 
 Is registered shall decide amongst themselves in what rotation they 
 retire; the retiring officers being eligible for re-election; but if through 
 death, resignation or otherwise, a vacancy should occur amongst the 
 officers of this society, a special meeting of the members may be called, 
 at which meeting another or others may be elected to fill such vacancy 
 or vacancies. Tliat no person be eligible for a member of the commit- 
 tee who has not been a member of the society twelve months, or eligi- 
 ble for president who has not been on the committee ; but any member 
 of the committee may stand his poll for the president without first 
 resigning his office as committee-man. Any committee-man or other 
 officer may be removed by a special general meeting called for the 
 purpose.
 
 OF THE ROCHDALE EQUITABLE PIONEERS. 261 
 
 (b) Candidates for the committee of management and for all other 
 offices of the society shall be nominated at the monthly meeting im- 
 mediately preceding the quarterly meeting at which they are proposed 
 for election. Should the number nominated not be sufftcient to fill 
 the vacancies, the quarterly meeting shall elect the required number 
 not so nominated. 
 
 15. The general management of the society shall, subject to the pro- 
 visions hereinafter contained, be in the committee of management, 
 wlio shall have the control of all business carried on by or on account 
 of tlie society, the determination of the persons to be employed therein, 
 and the rates "of payment to be made to such persons, the appointment 
 of salesmen or other servants necessary for conducting the same, and 
 may assign to any such servant such duties and salaries as they may 
 think fit. All members of the society shall, in respect of any work or 
 service which they may perform for or on behalf of the society, be paid 
 after such rate of payment as the committee may determine. 
 
 16 (a) All moneys received on account of contributions, donations, 
 admissions, fines, or otherwise, shall be paid to an account to be 
 opened with some bank, selected by the committee of management, in 
 the name of the society, unless the finances of the society are too small 
 to allow of such an account being kept; in which case they shall re- 
 main under the care of tlie treasurer, and all such moneys shall be 
 applied towards carrying out the objects of the society, according to 
 the rules thereof. And so much of tlie funds of tlie society as are not 
 wanted for immediate use, or to meet the usual accruing liabilities, 
 under the provisions aforesaid, shall, with the consent of tlie quarterly 
 meeting, or a special general meeting of the members, be invested by 
 the committee of management. The business of the society sliall be 
 conducted for ready money. 
 
 (6) Every year before the first of June, the committee of manage- 
 ment shall cause the secretary to send to the Registrar the annual 
 return, in the form prescribed by the Chief Registrar of Friendly Soci- 
 eties, required by the Industrial and Provident Societies Act, 1876, of 
 the receipts and expenditure, funds and effects of the society, and of 
 the number of members of the same up to the 31st December then last 
 Inclusively, as audited and laid before a general meeting, showing sep- 
 arately the expenditure in respect of the several objects of the society, 
 together with a copy of the auditors' report, if any. 
 
 (c) Such return shall state whether the audit has been conducted by 
 a public auditor appointed under tlie Industrial and Provident Socle- 
 ties Act 1876, and by whom ; and if such audit has been conducted by 
 any persons other than a public auditor, shall state the name, address, 
 and calling or profession of each of such persons, and the manner 
 in which, and the authority under which, they were respectively 
 appointed. 
 
 (</) It shall be the duty of the committee of management to provide 
 the secretary with a sufHcient number of copies of the annual return 
 for supplying jjratuitously every member or person Interested in the 
 funds of the society, on his application, with a copy of the last annual 
 return of the society for the time being; and it shall be the duty of the 
 secretary to supply such gratuitous copies on application accordingly. 
 
 (e) It shall be the duty of the committee of management to kocji a 
 copy of the last balance sheet of the society for the time being, to-
 
 262 MODEL RULES AND WORKING BY-LAWS 
 
 gether with the report of tlie auditors, If any, always hung up in a con- 
 spicuous place at the registeretl office of the society. 
 
 17. The committee of management sliall meet every Thursday even- 
 ing, at halt-past seven o'clock, and any six of the committee shall 
 form a quorum. It shall in all things act for and in the society's name, 
 and all acts and orders nnder tlie powers delegated to it shall have the 
 like force and effect as if they were the acts and orders of a majority 
 of the members of the society at a general meeting tliereof. Every 
 question at such meeting shall be decided by a majority of votes. Any 
 two of the committee may call a special meeting thereof, by giving one 
 clear day's notice in writing to the secretary; but at such special meet- 
 ing no other business than that specified in the notice shall be taken 
 into consideration. The committee shall convene all meetings of the 
 society on such requisitions as are herein mentioned, and shall also 
 cause the accounts of all business carried on on behalf of the society 
 to be regularly entered in proper books, and shall cause a statement of 
 the accounts of the society to be made out up to the first or second 
 Tuesday in the months of March, June, September and December in 
 each year, so as to give not less tlian twenty-seven days between the 
 time of taking stock and the following quarterly meeting; and also so 
 as to avoid having a quarter consisting of twelve weeks only. This 
 statement, together with all the necessary vouchers, shall be laid be- 
 fore the persons appointed to audit the same, not less than ten days 
 before the day appointed for the quarterly meeting of the society. All 
 other committees, whether educational or otherwise, which are or may 
 be formed in connection with this society, shall be subject to the 
 above committee. 
 
 18. The president shall act as chairman at all meetings of the soci- 
 ety, and should he not be present at any of the society's meetings, the 
 officers and members present shall elect one from amongst themselves 
 to act as chairman on that occasion. The president, or chairman act- 
 ing in his absence, shall sign all contracts, also the minutes of the 
 proceedings at each of the society's meetings, and shall have the cast- 
 ing vote, besides his own vote as a member. 
 
 19. Tlie secretary shall give his attendance at all meetings of the 
 society and of the committee of management; summon all special 
 meetings of the committee, and record correctly the names of the sai<l 
 committee there present, and the minutes of their proceedings, which 
 he shall transcribe into a book, to be authenticated by the signature 
 of the chairman as the proceedings of the meetings; he shall counter- 
 sign all contracts, and shall on all occasions in the execution of his 
 office, act under the superintendence, control and direction of the said 
 committee. An assistant secretary may at any time be appointed by 
 the committee of management. 
 
 20. The treasurer shall be responsible for such sums of money as 
 may from time to time be paid into his hands by the secretary, or by 
 any person on account of the society, and for the investment or appli- 
 cation of the same under the authority of the committee of manage- 
 ment, in such manner as they shall direct; he shall see that the cash 
 account is balanced weekly, and shall supply the committee with a 
 duplicate thereof when required. 
 
 21. Every person appointed to any office touching the receipt, man- 
 agement or expenditure of money for the purposes of the socletyt
 
 OF THE ROCHDALE EQUITABLE PIOKEERS. 263 
 
 shall, before entering upon the duties of his office, give such security 
 as is thought sufficient by the committee of management for the time 
 being. 
 
 22. At any quarterly meeting of the society, the majority of the 
 members present may assign to tlie committee, treasurer, secretary, 
 auditors, or any other officer of the society, such remuneration as seems 
 to them desirable. 
 
 23. No servant of this society shall serve any office in the committee 
 of management, nor be allowed to vote for any candidate for the com- 
 mittee of management, or be an auditor on any account whatever. 
 
 24. Any member of the committee of management shall be disquall. 
 fled from remaining on the committee if he holds any other office or 
 place of profit under the society, except such as may be assigned 
 according to Rule 22; if he becomes bankrupt, or if he is concerned in 
 or participates in the profits of any contract with the society. But the 
 above rule shall be subject to the following exceptions : That no mem- 
 ber of the committee shall vacate his office by reason of his being a 
 member of any company or society which has entered into contracts 
 with, or done any work for this society. Nevertheless, he shall not 
 vote in respect of such contract or work ; and if he does so vote, his 
 vote shall not be counted. 
 
 25. A separate and distinct account shall be kept of the allowance 
 for educational purposes. Tliis fund sliall be under the management 
 of a special committee, consisting of the president of the society for 
 the time being, and ten members, five of whom shall be appointed at 
 the quarterly meeting in April, and five at the quarterly meeting in 
 October, and retire alternately. The educational committee sliall be 
 held responsible to the quarterly meetings of the society for the proper 
 disposal of the fund placed under their care, and shall not be allowed 
 to vote away any portion thereof to be spent or disposed of by any 
 other party. They shall appoint a chairman from amongst themselves. 
 
 26. No president, secretary, treasurer, or other member of the com- 
 mittee, while in office, shall be allowed to nominate or second any 
 member to serve on the committee of management. 
 
 Limitation of Amount of Members' Share Investment. 
 
 27. No member, other than a registered society, shall, subject to 
 such restrl(!tions as shall from time to lime be determined by a quar- 
 terly meeting, be entitled to an interest in the shares or funds of the 
 society exceeding the sum of two hundred pounds. 
 
 Power to Accept Loans and Deposits. 
 
 28. Tlie committee of management may from time to time, for the 
 I)urposes of the society, obtain by way of loan from any person, sociely 
 or (u)nii)aiiy, whether or not a member of the society, on security of 
 bonds signed by three, at least, of the committee, and countersigned 
 by the secretary for the time being, or such other security as shall be 
 agreed ui)on between the committee of management and the lender. 
 They may also obtain advances from the society's bankers from time 
 to time, and give continuing security by mortgage (legal or equitable) 
 imder the seal of the society for the money which slwall be owing on 
 the account current of the society with the bankers. The total amount
 
 264 MODEL RULES AND WOEKiNG BY-LAWg 
 
 of the stun or sums so borrowed, and of deposits under Rule 29, shall 
 not exceed such sum or sums as shall have been approved by a major- 
 ity of the members present at a quarterly or special meeting, and shall 
 not at any time exceed two-thirds of the amount of the declared share 
 capital of the society. 
 
 They shall be empowered to give such rate of Interest not exceeding 
 six per cent per annum, and subject to such terms of repayment as 
 shall be agreed upon. 
 
 29. The committee of management may receive deposits of not more 
 than one dollar and twenty-flve cents in any one payment, nor more 
 than one hundred dollars from any one depositor, payable on not less 
 than two clear days' notice. They may agree to pay upon such deposit 
 such rate of interest not exceeding five per cent per annum, as may 
 from time to time seem to them desirable. No payment of withdrawa- 
 ble capital shall be made while a claim on account of a deposit is 
 unsatisfied. 
 
 Share Capital How Paid up. Notice for Withdrawal. 
 
 30. The capital of the society shall be raised in shares of five dollars 
 each, which shall not be transferable, except in the case mentioned in 
 Rule 39. Each member must hold at least five shares, and shall not 
 pay less than seventy-five cents until he has made up his five shares; 
 and on default shall be fined six cents per quarter, unless the default 
 is shown to have arisen from sickness, distress, or want of employ- 
 ment, or any other reason satisfactory to the committee of manage- 
 ment, in which case a written statement of the cause of default shall 
 be sent to the secretary at the time at which such payments ouglit to 
 be made, otherwise the fines shall be in force. Profits arising from 
 members' trade when not withdrawn may be considered as contribu- 
 tions to shares. Any member may pay the whole or any part of his 
 shares in advance. 
 
 31. All sums due from any member under the provisions of these 
 rules for contributions to shares or otherwise, shall be recoverable 
 from him, his executors or administrators, by legal process, as a debt 
 due to the society. 
 
 32. Should the committee of management have more funds on hand 
 than they can profitable invest, they shall have power in the first place 
 to repay all loans contracted under the 28th rule, and should they still 
 liave too much money, shall reduce the number of shares held by tlie 
 members, the highest being the first paid off. Members may allow 
 their surplus shares to remain in the funds of the society after the time 
 of notice has expired, but shall not receive interest thereon. 
 
 33. Members may withdraw any sum above twenty-flve dollars, 
 according to the following scale of notice, subject, however, to tlie dis- 
 cretion of the committee of management: 
 
 $10 on application. ^250 to $375 6 weeks. 
 
 37.5 to 500 7 weeks. 
 500 to 625 8 weeks. 
 625 to 750 9 weeks. 
 750 to 875 10 weeks. 
 875 to 1000 11 weeks. 
 
 Cases of Distress. 
 
 34. A member, being In distress, may withdraw any sum he may 
 Have m tne lunds of tne socletv .above one dollar and twenty-flve 
 
 10 to 
 
 $25 
 
 1 week. 
 
 25 to 
 
 50 
 
 2 weeks. 
 
 50 to 
 
 100 
 
 3 weeks. 
 
 100 to 
 
 150 
 
 4 weeks. 
 
 160 to 
 
 250 
 
 5 weeks.
 
 OF THE ROCHDALE EQUITABLE PIONEERS. 265 
 
 cents, at the discretion of the committee of management, such member 
 may, however, be called upon to repay such withdrawal in manner 
 provided by Rule 30, until his shares again amount to not less than 
 twenty-five dollars. 
 
 Members Provided with Copies of Rules. 
 
 35. It shall be the duty of the committee of management to provide 
 the secretary with a sufficient number of copies of tlie rules, to enable 
 him to deliver to any person on demand a copy of such rules on pay- 
 ment of a sum not exceeding twenty-five cents, and of the secretary 
 to deliver such copies accordingly. 
 
 Appointment of Auditors and Theib Duties. 
 
 36. The committee of management shall once' at least In every year 
 submit the accounts of the society, together with a general statement 
 of the same and all necessary vouchers up to the 31st December then 
 last, for audit, either to one of the public auditors appointed under the 
 Industrial and Provident Societies Act, 1876, or to two or more persons 
 appointed as auditors by the members at the meeting next before each 
 yearly meeting of the society, and shall lay before every such meeting 
 a balance sheet (which eitlier may or may not be identical with the 
 annual return, but must not be in contradiction to the same), showing 
 the receipts and expenditures, funds and effects of the society, together 
 with a statement of the affairs of tlie society since the last ordinary 
 meeting, and of their then condition. Such auditors shall have access 
 to all the books and accounts of the society, and shall examine eveiy 
 balance sheet and annual return of the receipts and expenditure, funds 
 and effects of the society, and shall verify the same with the accounts 
 and vouchers relating thereto, and shall either sign the same as found 
 by them to be correct, duly vouched, and in accordance with law, or 
 shall specially report to the meeting of the society, before which the 
 same is laid, in what respect they find it incorrect, unvouched, or not 
 in accordance with law. 
 
 Inspection of Books and Accounts. 
 
 37. The books and accounts of the society shall be open to the inspec- 
 tion of any member or person having an interest in the funds of the 
 society, at all reasonable times, at the registered office of the society, 
 or at any place where the same are kept, subject to such regulations 
 as to the time and manner of such inspection as may be made from 
 time to time by the general meetings, and it shall be the duty of the 
 secretary to produce them for inspection accordingly, provided that 
 no member, other than an officer of the society, shall bo entitled to 
 inspect the loan or deposit account of any member without his writ- 
 ten consent. 
 
 Withdrawal from the Society, and Payment of Deceased 
 Members' Shakes. 
 
 38. A member who has paid up all his contributions may withdraw 
 from the society; and any member may withdraw without paying up 
 all his contributions, with the consent of a majority of the committee
 
 266 MODEL BULES AND WORKING BY-LAWS 
 
 of management. Upon the withdrawal or exchision of any member, 
 he shall receive payment of the capital advanced by him, with all 
 arrears of interest and profits, if any, according to the provisions of 
 Rule 33, or within six months after such withdrawal or exclusion. 
 Any member having received any interest or participated in the profits, 
 shall, in case of withdrawal from the society, forfeit such sum (not 
 exceeding fifty cents) as the committee of management may think 
 proper; such forfeits to be applied to the reduction of the value of 
 fixed stock. 
 
 39. The secretary shall keep a book in which he shall register or 
 record all nominations made by members of the society of any person 
 or persons not being officers or servants of the society, unless any such 
 officer or servant is the husband, wife, father, mother, child, brother, 
 sister, nephew or niece of the nominator, to whom such nominator's 
 shares (the term shares including, for the purposes of this rule, loans 
 and deposits) shall be transferred at his decease, provided that the 
 amount credited to him in the books of the society does not exceed 
 five hundred dollars. 
 
 Tlie secretary shall in like manner record or register all revocations 
 or variations of such nominations by the nominator. 
 
 Tlie nominator shall pay six cents to the management fund for the 
 recording or registering of every such nomination, revocation, or 
 variation. 
 
 On receiving satisfactory proof of the dea(h of a nominator, the com- 
 mittee shall, at their option, either transfer the sliares in manner 
 directed in such nomination, or pay to any person entitled thereunder 
 the full value of his interest, unless the shares to be transferred to any 
 nominee would raise his interest in the society to an amount exceeding 
 one thoasand dollars, in which case they shall pay him the full value 
 of such shares, not exceeding the sum aforesaid. An entry of such 
 payment shall be made in the proper book, and thereupon the shares 
 so paid for shall be extinguished. If any member entitled to an inter- 
 est in the society not exceeding five hundred dollars dies intestate 
 and without having made any nomination which remains unrevoked 
 at his death, such interest shall be transferable or payable without 
 letters of administration to or among the persons who appear to a 
 majority of the committee, upon such evidence as they may deem sat- 
 isfactory, to be entitled by law to receive the same, subject to the pro- 
 visions of the Provident Nominations and Small Intestacies Act, 1883. 
 
 40. If any member, entitled to an interest in the society not exceed- 
 ing five hundred dollars, dies leaving a will, and without having made 
 any nomination which remains unrevoked at his death; or If any 
 momber entitled to an interest in the society exceeding five hundred 
 dollars dies, such Interest shall be transferable or payable only to his 
 executors or administrators, subject as aforesaid. 
 
 41. If any member becomes bankrupt his interest In the society shall 
 be transferable or payable to the trustee of his property. 
 
 42. Upon the death of any member, unless the person nominated as 
 aforesaid, or in the event of there being no such nominated person, the 
 legal personal representative of such deceased member shall, within 
 one month thereafter, give notice thereof, in writing, to the secretary, 
 stating the Christian and surname, place of abode, and profession or 
 business of such nominated person or legal personal representative,
 
 OF THE EOCHDALE EQUITABLE PIONEEES. 267 
 
 as the case may be; twenty-five cents shall be deducted from the sum 
 payable to him. No interest will be allowed on deceased members' 
 shares after the termination of the time such notice should have been 
 given, until legally transferred. 
 
 Application of Profits. 
 
 43. The net proceeds of all businesses carried on by the society after 
 paying or providing for the expenses of management and interest on 
 loans and deposits shall be appropriated as follows : 
 
 1st. To reduction of fixed stock, according to the following ratio on 
 the first cost. Fixtures and machinery at ten per cent per annum; 
 shop buildings, warehouses, workshops, offices and meeting rooms at 
 two and one-half per cent per annum ; and cottage buildings at one 
 per cent per annum. 
 
 2d. All entrance fees and forfeits on withdrawal, shall be applied to 
 reduction of such portion of fixed stock as the committee of manage- 
 ment shall from time to time determine. 
 
 3d. Interest not exceeding at the rate of five per cent per annum shall 
 be credited quarterly to the account of each member upon the share 
 capital standing to his credit in the books of the society. 
 
 4th. The excess, if any, of the interests and dividends received from 
 the investments of the society, including rents upon shops and other 
 fixed stocks in use by the society, and the balance of all rents re- 
 ceived from cottages and other property belonging to the society 
 over and above the interest allowed upon the loans, deposits, and 
 members' share capital, shall be carried to a fund to be called "The 
 Investment Reserve Fund," which sliall only be appropriated by 
 direction of a quarterly meeting. 
 
 Bth. Two and one-half per cent of the remainder, after the provision 
 for reduction of fixed stock and interest upon capital as aforesaid, 
 shall be carried to the account of the educational fund, besides the 
 cost of room, light and fuel. 
 
 6th. Tlie remainder shall be divided among the members of the society 
 in proportion to the amount of their purchases during the quarter. 
 
 7th. The profits upon goods supplied to non-members, together with 
 all fractional parts of a penny in the division of profits, shall be car- 
 ried to a fund to be called the reserve fund. This fund shall accumu- 
 late, and shall only be appropriated by direction of a quarterly 
 meeting, either to some provident purpose or to the reduetion of 
 some portion of the fixed stock; but no appropriation of the n^serve 
 fund shall be allowed unless one month's notice of the intention to 
 propose such appropriation shall have been given. 
 
 Complaints, Suggestions, and injurious Conduct. 
 
 44. If any member have any complaint to make relative to the qual- 
 ities or prices charged for goods supplied by the society, or respecting 
 the conduct of any of the servants or offlcci-s of the society, such com- 
 plaint shall be sent to the committee in writing, signed by the member 
 complaining or some otlier member on his or their behalf, and shall be 
 investigated and decided upon l)y tlie committee, such decision to be 
 enteretl In their minute book ; and If satisfaction be not given by tlielr 
 decision, the same may be brought before a general meeting of the
 
 268 MODEL BULES AND WORKING BT-LA.WS 
 
 members; and if not then settled to the satisfaction of the parties 
 complaining, shall be referred to a quarterly meeting. Any member 
 may likewise send to the committee, in writing, any suggestions for 
 carrying into better effect the objects of the society, which shall be 
 considered by the committee. 
 
 45. The name of the society shall be kept painted in letters easily 
 legible, and affixed on the outside of every office or place in which the 
 business of the society is carried on, in a conspicuous position, and 
 shall be engraven in legible characters on its seal, and shall be men- 
 tioned in legible characters in all notices, advertisements, and other 
 official publications of the society, and in all bills of exchange, prom- 
 issory notes, indorsements, cheques, and orders for money and goods 
 purjwrting to be signed by or on behalf of the society, and in all bills 
 of parcels, invoices, receipts and letters of credit of the society. 
 
 46. The committee of management may suspend any member who 
 persists in any conduct injurious to the society, until they submit the 
 same to a general meeting (of whicli the offender shall have three clear 
 days' notice), which shall have power to expel such member. No per- 
 son so expelled shall by the votes of a majority again be re-admitted, 
 except of the members present at a general meeting; nor unless notice 
 has been given at the last previous general meeting of the intention to 
 proi>ose his re-admission. 
 
 Seal of the Society. 
 
 47. The seal shall have for a device as follows : " a figure of a woman 
 with a pair of scales and a sword, treading on a serpent, and a man 
 with a pick on his shoulder, in the distance ; " it shall be in the custody 
 of the president, and it shall be used only when directed by resolution 
 of the committee of management, a muiute of which resolution shall 
 be duly recorded by the secretary. , 
 
 Investment of Capital. 
 
 48. The committee of management may invest any part of the capi- 
 tal of the society in or on the security of any other society registered 
 under the Industrial and Provident Societies Act, 1876, or under the 
 Building Societies Acts, or of any company registered under the Com- 
 panies Acts, or incorporated by Act of Parliament, or by charter, and 
 may make advances to members upon mortgage of freehold, copyhold 
 or leaseliold property, upon such terms as agreed upon, provided that 
 no such investment be made in the shares of any society or company 
 other than one with limited liability, and may make any such invest- 
 ment in the registered name of the society. And in the case of an in- 
 vestment on the security of any such society or company, at such rate 
 of interest, and on such terms as to repayment or otherwise, as may 
 be agreed on. And all such investments now existing, which would 
 have been valid if made under this rule, are hereby confirmed and 
 ratified as if they had been made hereunder. 
 
 BUILDING DEPARTMENT. 
 
 49. The committee of management may, subject only to such restric- 
 tions and limitations as shall from time to time be imposed by resolu- 
 tion of members at a quarterly or monthly meeting, purchase, or hold
 
 0^ THE ROCHDALE EQUITABLE PlONtlERS. ^69 
 
 upon lease or mortgage, any lands, together with the buildings thereon, 
 and may build or erect any houses, cottages, or other buildings, on any 
 lands from time to time held by the society, whether tor the purposes 
 of the society or not, and may alter, pull down, and again rebuild any 
 building, whether erected by the society or otherwise vested in it ; and 
 may manage, lay out, lease and sub-lease such lands either at rack 
 rent on buildings, mining, quarrying, or improving leases, or otherwise, 
 howsoever and either to members of the society or other persons; 
 and may dispose of, sell, mortgage, convey or reconvey, either to mem- 
 bers of the society or other persons, any lands or buildings, for the 
 time being held by the society; and may appropriate to the use of the 
 society any purchase moneys or other m.oneys received in respect of 
 rents of any lands or buildings. 
 
 50. The committee of management may, subject to the restrictions 
 and limitations hereinbefore mentioned, advance any moneys out of 
 tlie society's funds to members of the society on the security of lands 
 or buildings, subject to such scale of repayment and at such rate of 
 interest as is hereinafter mentioned, no such advance to exceed four- 
 flfths of the ascertained value of the said security; but no advance 
 sliall at any time be made upon the security of any property that shall 
 be subject to any previous mortgage. * 
 
 51. As soon as convenient after tlie registration of these rules, and 
 at the first committee meeting after the ninth day of January in each 
 year, the committee of management shall appoint two competent val- 
 uers to inspect all property offered as security to this society ; and any 
 member of this society desirous of applying for any advance of money 
 from this society to assist him in buying land, building any house, 
 houses, cottages or other buildings, or desirous of effecting a mortgage 
 Mp(m any land, houses, cottages, or other buildings already erected, 
 sliall give notice in writing to the committee of management, wliosliall 
 Instruct the valuers to inspect the said property, or in case of buildings 
 not erected shall examine tlie plans and specifications of the buildings 
 proposed to be erected, and the valuers shall furnish a written report 
 tliereon to the committee of management; upon forms provided for 
 tliat purpose, within six days, of all matters pertaining to such prop- 
 erty. Tiie said report shall contain the following particulars : 1st. The 
 name of the person or persons making tlie application. 2d. The situa- 
 ti(m of the property offered as security, giving number of house and 
 name of street wlien practicable. 3d. Tlie number of yards of land, 
 with a pen and ink plan of its shape, and particulars of the Iwundaries. 
 4tli. Whetlier the land is leasehold, oopyliold or freehohl, and wliat is 
 tlie term for which it is held ; and, if leasehold, what is the date of tlie 
 lease. 5th. What is the annual ground or chief rent, or other charge, 
 if any, upon the property, fith. What Is the value of the property, or, 
 in case of buildings not erected, what will be the value of the property 
 when the said buildings are completed. 
 
 52. When the committee of management shall be satisfied with tlie 
 lands or buildings so to be offered as aforesaid are <a sufficient security^ 
 and when the member to whom the said land and buildings b(>loiig 
 shall have executed a mortgaee or assurance of the said lands or build- 
 ings in such form as shall be deemed to be sufficient secTirlty by tlie 
 committee of management for the time being, under the advice of their 
 solicitor, they shall direct the president and secretary to pay to such
 
 270 MODEL KULES AND WORKING BY-LAWS 
 
 member the sum or sums of money he, or she, or they shall be entitled 
 to receive, and the president siiall take charge of the said deed, and 
 all other deeds relating thereto, and deposit the same in the society's 
 fire-proof safe, as a security to the society tliat the said advanced 
 moneys shall be repaid according to the conditions and regulations 
 hereinafter mentioned. 
 
 53. If any member of the society, before applying for an advance of 
 money, shall be desirous of ascertaining what sum of money the com- 
 mittee of management are willing to lend upon any property, notice 
 shall be given to thr valuers in manner beforementioned, and the val- 
 uers sliall inspect the said property, and make their report thereon to 
 tlie committee of management, and tlie committee shall make known 
 to the said person the sum tliey will advance thereon on tlie conditions 
 herein contained, and the person on whose behalf the inspection and 
 valuation has been made shall pay all the expenses thereof, whether a 
 loan is efifected or not. 
 
 54. Every member to whom an advance of money slsall have been 
 made on the security of any land or building which is subject to the 
 payment of any yearly or half-yearly ground or chief rent, or other 
 annual charge, shall, whenever required so to do, furnish to the secre- 
 tary of the society a statement containing the amount of such ground 
 or chief rent, or other payment, the times at which they are respect- 
 ively required to be paid, and the names and residences of the persons 
 entitled to receive the same, and shall from time to time, if, and when- 
 ever so required, produce to the secretary of the society for the time 
 being, a receipt or voucher showing that the said payments have been 
 duly made; and If the said receipt or voucher shall not have been 
 produced as required, the secretary shall ascertain from the person 
 entitled to receive the said ground or chief rent or other payments, 
 whether they have been duly received, and if not, then he, the secre- 
 tary, shall forthwith pay the same out of the society's funds, and the 
 amount thereof shall be debited to the account of the person to whom 
 the advance has been made, together with a fine of one dollar and 
 twenty-flve cents, and any other reasonable expenses to which the sec- 
 retary, in the payment thereof, shall have been subject, by reason 
 either of the non-production of the receipts or the non-payment of the 
 said rent or charges. 
 
 5.5. In the case of any member having made an agreement with the 
 committee of management as to the amount to be advanced on any 
 building about to be erected, or in course of erection, and having exe- 
 cuted such deed of mortgage or assurance as beforementioned, the said 
 member shall be entitled to receive a proportionate part of the advance 
 agreed tipon when the said buildings shall have been raised to the 
 height of the first floor, a proportionate part thereof when they shall 
 be covered in or fully slated, and the remaining portion when the said 
 buildings shall be completed according to the plans and specifications 
 thereof, subject nevertheless to the same Inspection and approval as 
 premises already built. 
 
 56. Should any member of this .society to whom an advance of money 
 has been made from the funds of this society, on the security of prop- 
 erty given as hereinbefore mentioned, leave any building upon which 
 the said money shall have been advanced, unfinished, or begin to pull 
 down, remove, damage, or carry away the same, or any part thereof,
 
 OF THE ROCHDALE EQUITABLE PIOifEERS. 271 
 
 or cause or procure the same or any part thereof to be pulled down, 
 removed, or carried away to the prejudice of tliis society, or tlie secur- 
 ity given, tlie committee of management sliall be at liberty forthwith 
 to take possession, and either to sell such premises at the cost of such 
 member or to employ such person or persons as they shall think fit to 
 finish and complete the same out of the funds of the society, and charge 
 the cost of completion to the debit of the member to whom the advance 
 has been made. 
 
 57. All property mortgaged to this society shall be regularly insured 
 against loss by fire by the committee of management, in the society's 
 name, with such company or office as they shall think fit, and for such 
 sum or sums as shall be agreed upon between the member and the said 
 committee, but not less than the full amount as shall from time to time 
 be owing upon the said mortgage. The mortgagor shall pay the costs 
 of the said insurance and of the annual renewals thereof, on or before 
 the ninth day of the month next ensuing after the same shall be due, 
 and in default thereof shall pay the same penalty as for arrears of 
 repayment and interest, as is hereinafter provided. The mortgagor 
 shall also give to the committee of management a written notice of 
 any and every trade or manufacturing process carried on in any of 
 the mortgaged premises, or of any stove, furnace, or other article 
 erected therein, which will in the least affect the validity of the policy 
 of insurance in force before the commencement of such trade, or before 
 the erection of such stove, furnace, article or thing, or, in default there- 
 of, shall be fined one dollar and twenty-five cents per week during the 
 time which such notice is withheld. Whenever any property mort- 
 gaged to this society has sustained damage by fire, the committee of 
 management shall receive the amount of the damage so sustained 
 from the Insurance office, or company, and shall give a receipt for the 
 same, signed by the president, and countersigned by the secretary for 
 the time being, which shall be a sufficient discharge to the insurance 
 office or company liable by virtue of any policy of insurance. The 
 money received for such damage shall be applied to the payment of 
 tlie amount secured by the mortgage deed of the damaged premises, or, 
 if the committee of management consider it expedient, they shall 
 expend such money In repairing such damage. 
 
 58. Every member to whom an advance of money has been made on 
 the security of lands or btilldings. In manner hereinbefore provided, 
 shall, on or before the ninth day of every calendar month, pay at the 
 registered office of the .society, to such person <>r persons as tlie com- 
 mittee of management shall from time to time appoint, no< /ess than 
 two dollars for every five hundred dollars of such advanced moneys, 
 together with interest not to exc'ced five per cent per annum, on su<li 
 portion of the said advance as shall have been unpaid on the ninth 
 day of January next preceding, reckoning all parts of pound.s as full 
 pounds in the calculation of such interest. And every borrower shall, 
 In addition to the beforementioned payments, pay, on the ninth day 
 of January in each year, a further sum not exceeding fifty cents for 
 every five hundred dollars of the original amount advanced to provide 
 for the expense of conducting this department. 
 
 59. Should any member neglect to pay on or before the ninth day 
 of each and every month, the repayment and interest due according 
 to the provisions of the foregoing rule, together with all arrears of
 
 272 MODEL RULES AND WORKING BY-LAWS 
 
 repayment and interest, and together with all charges, fines and pen- 
 alties to which he shall from time to time become liable, according to 
 these rules, such person shall be charged additional interest after the 
 rate of twopence per pound for every month [about one per cent] or 
 part of a month, during which such moneys shall be in arrear, such 
 additional interest to be calculated upon the sum of the several arrears. 
 And should any person neglect to pay any of such payments and inter- 
 est or any part or parts thereof respectively, it shall be lawful for the 
 committee of management, in their discretion and at any time after 
 such default, to enter into possession of the property which has been 
 given as security for the said payments, and shall cause such property 
 tp be sold, and the proceeds of such sale to be appropriated in liquida- 
 tion of the debt owing to the society on the said security, together 
 with the expense of the said sale, and pay the balance over to such 
 persons as shall be legally entitled to receive the same. 
 
 60. Any member to whom an advance of money shall have been 
 made on the security of any lands or buildings, desiring to dispose of 
 his interest in such lands or buildings, may transfer such interest, 
 with the consent of the committee of management for the time being, 
 to any other member of the society. All such transfers shall be of 
 such form and executed in such manner as the committee of manage- 
 ment for the time being shall deem necessary, under the advice of 
 their solicitor. But no transfer shall be made of any property held on 
 mortgage by this society unless or until all moneys and arrears due in 
 respect of the amount advanced upon the said mortgaged property 
 shall have been duly made. 
 
 61. Any member to whom an advance shall have been made in man- 
 ner hereinbefore provided, may, by and with the consent of tlie com- 
 mittee of management for the time being, substitute any other security 
 of equal value, in lands or buildings, in lieu of the security previously 
 given, on payment of all the necessary expense in respect to the trans- 
 fer of the said security or securities. 
 
 62. When any member to whom an advance of money shall have 
 been made out of the funds of this society, on the security of any mort- 
 gage or other assurance, shall have repaid the whole of such advanced 
 money, together with all an-ears of interest, fines, penalties or other 
 charges due thereon, according to these niles, the committee of man- 
 agement shall authorize a receipt to be given under the hands of two 
 members of the committee, countersigned by the secretary of the soci- 
 ety for the time being, such receipt to be in the form appended to 
 these rules, and shall be annexed to, or endorsed upon, siich mortgage 
 or assurance, and shall vacate the same and vest the estate of and in 
 the property therein comprised in the person entitled to the equity or 
 redemption of the said property. 
 
 63. Every member borrowing money from this society in accordance 
 with the foregoing rules shall pay the valuers' fee for each inspection 
 of the property offered as security. And the said person shall also pay 
 the cost of all deeds of mortgage and transfer required by these rules, 
 in addition to the payments hereinbefore mentioned. And all such 
 deeds shall be drafted and prepared by the solicitor appointed by the 
 committee of management for the time being. 
 
 64. The committee of management shall cause to be provided proper 
 books to record the proceedings of this department, and shall cause to
 
 OF THE ROCHDALE EQUITABLE PIONEEES. 273 
 
 be kept a separate account of all moneys received and paid on account 
 thereof, and the auditors of the society for the time being shall exam- 
 ine all accounts belonging thereto, and see that the receipts and pay- 
 ments are properly entered in the books; and the said books shall be 
 made up and balanced on the respective quarter days of the societyt 
 when all other accounts are so made up and balanced; and the result 
 thereof, so far as respects the total, shall be shown from quarter to 
 quarter in the society's balance sheet. 
 
 Construction of Rules. 
 
 65. In construelng these rules, words importing the masculine gen- 
 der shall be taken to apply to a female; words importing one person 
 or thing only, shall be taken to apply to more than one person or thing; 
 and words importing a class shall be taken to apply to the majority of 
 that class, unless there is something in the context to prevent such a 
 construction. 
 
 Application for Registrar's Inspection. 
 
 66. It shall be the right of one-flf th of the total number of members, 
 or if the number of members shall at any time amount to 1,000, and 
 shall not exceed 10,000, it shall be tlie right of 100 members, or if the 
 number shall at any time exceed 10,000, it shall be the right of 500 mem- 
 bers, by an application in writing to the Chief Registrar, signed by 
 them in the forms respectively provided by the Treasury Regulations 
 In that behalf 
 
 (a) To apply for the appointment of one or more inspectors to exam- 
 ine Into the affairs of the society and to report thereon. Industrial 
 and Provident Societies Act, 1876, s. 15. (1 a.) 
 
 (b) To apply for the calling of a special meeting of the society. In- 
 dustrial and Provident Societies Act, 1876, s. 15. (1 b.) 
 
 Either such application to be made upon such notice to the society, 
 and to be supported by such evidence for the purpose of showing tliat 
 the applicants have good rea-son for requiring such inspection to be 
 made, or meeting to be called, and that they are not actuated by mali- 
 cious motives in their application, as the Chief Registrar shall direct. 
 Industrial and Provident Societies Act, 1876, s. 15. (2.) 
 
 67. The society may at any time be dissolved by the consent of 
 three-fourths of the members, testified by llieir signatures to some 
 instrument of dissolution in the form provided by the Treasury RegTi- 
 lations in that behalf. Industrial and Provident Societies Act, 1876, 
 s. 17. (1.) 
 
 18
 
 By-Laws of Successful American Societies. 
 
 THE ALLEGAN COUNTY SOCIETY. 
 [See Pages 105-114.] 
 
 The Cooperative Association of the Patrons of Hus- 
 bandry of Allegan County, Mich., has a president, 
 vice-president, secretary and treasurer, who, according to 
 the articles of association, shall hold their offices for the 
 term of one year or until their successors shall be duly 
 elected and qualified. The same is true of the board of 
 not less than 10 or more than 20 directors, who shall 
 manage the affairs of the corporation. "The officers 
 and directors shall be elected in each and every year at 
 the annual meeting of the stockholders." Paragraph 12 
 of the articles of association is identical with the first 
 of the by-laws. The by-laws follow : 
 
 1. Members. Any person of good standing in the order of the Patrons 
 of Husbandry, may become a member of the association by purchasing 
 one or more shares of tlie stock thereof, and subscribing to the articles 
 of association, complying with the requirements of the same, and the 
 by-laws thereof. 
 
 2. Intoxicating liquors shall not be kept or sold at the store or place 
 of business of this association. 
 
 3. Powers of Directors. The board of directors of this association 
 shall, before commencing business, and from time to time thereafter, 
 whenever it may be deemed expedient, elect, appoint or employ a 
 purchasing or business agent, whose duty it shall be to make or attend 
 to making, all purchases and sales of goods, wares and merchandise, 
 for the use and benefit of the association, and who shall receive for 
 services, for himself and assistants, appointed with his approval, for 
 whose fidelity he shall be responsible, such compensation as may, from 
 time to time, be agreed upon by himself and board of directors. 
 
 4. Executive Committee. Tiiere shall be an executive committee of 
 three, elected annually by the directors from their number, whose 
 duty it shall be to have a special oversight of the business and affairs 
 of the association ; to advise with the agent and officers ; executing 
 the orders of the board of directors, and never acting in opposition to 
 
 274
 
 OF THE ALLEGAN COUNTY SOCIETY. 275 
 
 their expressed wishes. The board of directors and executive commit- 
 tee, and secretary, shall receive for services necessarily and faithfully 
 rendered, the sum of $1.50 per day, and actual and necessary expenses 
 while engaged in the service of the association. Their accounts shall be 
 audited by the board of directors. 
 
 5. The Purchasing Agent, before entering upon his duties, shall give 
 such bonds as may be required, and approved by the board of directors, 
 for the proper and faithful application and use for the purposes of 
 this association, of all moneys which may come into his hands as such 
 purchasing agent, which bonds shall be filed with the chairman of the 
 board of directors. 
 
 6. Inventory. Tlie executive committee and purchasing agent shall, 
 once a year, make an inventory of all the property and effects of the 
 association, beginning such inventory on or about the 20th day of 
 January in eacli year, and shall make a full statement of the amount 
 of purchases, sales, exchanges and profits, and all business transactions 
 of the association for the preceding year, which statement shall be 
 verified by the oath of the purchasing agent, and copies of the same 
 mailed to each director, and reported in full to the stockholders at 
 their annual meeting. 
 
 7. Reports. It shall be the duty of the agent of the association to 
 procure and exhibit to the executive committee at the time of taking 
 the inventory, bills of all articles purchased by him for this associa- 
 tion, also an account of all sales or exchanges made by him, with 
 account of daily sales to each purchaser, together with the name of 
 purchaser, which shall be entered in a book to be kept by him for that 
 purpose. 
 
 8. The purchasing agent shall, on the first Monday of each month, 
 mail to each director a report of the aggregate sale during the last 
 preceding month, profits on sales, together with a statement of all 
 expenses incurred in carrying on the business during that time. 
 
 9. The Secretary of the association shall keep a book containing the 
 names of all stockholders, alphabetically arranged, the number of 
 shares held by each person, together with a stock dividend account 
 Willi each of them, and shall perform such other clerical work as may 
 pertain to his position. 
 
 10. Certificates of Stock, signed by the president and secretary of th Is 
 association, shall be given to each stockholder, which shall state the 
 number of shares of capital stock owned by the person holding the 
 certificate. 
 
 11. Certificates of stock shall be deemed personal property, and may 
 be sold, transferred, and assigned by the owner thereof, and the pur- 
 chaser of a certificate, when the same shall be properly assigned and 
 transferred, shall be entitled to all iieneflts, and subject to all liabili- 
 ties as the original stockholder, provided, however, that no sale of 
 stock certificate shall be made to any person not a member of the 
 Order of the Patrons of Husbandry. 
 
 12. Prices of Goods. The executive committee and purchasing agent 
 shall determine, from time to time, the percentage above cost at which 
 goods shall be sold, which per cent shall be uniform on all articles, or 
 variable, as they may deem exjiedient, but such percentage shall, in 
 no case, be more than four per <!ent advance on cost. 
 
 13. Annual Statrment. At each annual meeting of the stockholders, 
 the directors of the preceding year shall exhibit, and make to them a
 
 276 MODEL BULES AND WORKING BY-LAWS 
 
 complete statement of the business transactions of this association for 
 sucli year, and shall instruct the secretary to give an order to each 
 stockholder for interest at five per cent, per annum on the amount of 
 his stock paid in, and if any surplus of profit still remain, it shall be 
 left in the hands of the treasurer as a sinking fund. 
 
 14. Cash Payments. AW purchases and sales of goods shall be for 
 cash, or ready pay, and if the agent shall sell goods belonging to this 
 association on credit, said agent shall be held responsible for payment 
 of the same. 
 
 15. In case of a neglect or failure to elect directors on the day 
 appointed for the annual meeting, the directors shall call another 
 meeting as soon as practicable for that purpose, of which at least two 
 weeks' public notice shall be given. 
 
 16. The vice-president shall be be ex-oflftcio chairman of the board 
 of directors. 
 
 17. Special Meetings of the directors or stockholders may be called 
 by the executive committee whenever in their judgment it may be 
 necessary, and the secretary of this association, when requested by tlie 
 executive committee, shall call such special meeting, mailing twenty 
 days' notice of the same to the secretary of each subordinate grange 
 represented in this association. 
 
 18. Grange Directors. Each subordinate grange holding certificates 
 of the capital stock of this association, among its members, to the 
 amount of two hundred dollars, or over, shall be entitled to one 
 director. 
 
 19. Place of Brisiness. The executive committee shall procure a place 
 in which to carry on the business of the association, and may effect 
 an insurance on the goods and property thereof in some good, reliable 
 insurance company. 
 
 20. Voting Powers. At all meetings of the stockholders, for the 
 election of officers, each stockholder shall be entitled to one vote for 
 the first share of stock held by him, and one vote for each additional 
 fifty shares owned by him in the capital stock of this association. 
 
 21. Withdrawal. Any member of this association may withdraw his 
 or her stock therefrom by giving to the secretary six months' notice of 
 his or her desire to make such withdrawal, provided, however, that 
 said stock shall have been in the association three years. 
 
 22. Upon the withdrawal, exclusion or removal of any member of 
 this association, such member, by surrendering the stock certificate, 
 shall be entitled to receive from the treasury the amount paid for such 
 certificate, with all arrears of interest, within six months after such 
 withdrawal, exclusion or removal. 
 
 23. Upon the decease of any member of this association, the legal 
 representatives of such deceased member, on their written request to 
 the secretary, and by the surrender, to the treasurer of the stock 
 certificate, shall be entitled to receive from the treasury of the associa. 
 tion the amount paid for such certificate, with all arrears of interest, 
 within six months after making such request as aforesaid. 
 
 24. Dissolution. This association may be dissolved at six months 
 notice, whenever the stockholders, at an annual or special meeting, 
 shall, by a majority of two-thirds of all the members, express a 
 desire for its dissolution.
 
 OF THE JOHNSOK COUNTY ASSOCIATION. 277 
 
 25. Regular Meetings of the board of directors shall be held on the 
 last Saturdays in January and July, in each year, commencing at ten 
 o'clock a. m. 
 
 26. Amendments. These by-laws may be added to, altered or 
 amended at any regular meeting of the board of directors, or any 
 special meeting called for that purpose, subject to the approval of the 
 stockholders. 
 
 RULES OF THE JOHNSON COUNTY ASSOCIATION. 
 
 [See Pages 114-121.] 
 
 I NAME. 
 
 This association shall be called the Johnson County Co-Operative 
 Association, No. 118, of the Order of Patrons of Husbandry at Olathe, in 
 the State of Kansas. 
 
 II. OBJECT. 
 
 The object of this association is to establish and maintain general 
 trade in merchandise, farm products and machinery, for the mutual 
 benefit of shareholders and customers. 
 
 III. OFFICE AND PLACE OF BUSINESS. 
 
 The office and place of business of this association shall be at such 
 places as this association shall designate. 
 
 IV. MEMBERS. 
 
 Any member of the Order of Patrons of Husbandry, in good stand- 
 ing, may become a member of this association by subscribing and 
 paying for at least one share therein, and by signing his name and 
 place of residence to these rules. But no Patron shall continue a mem- 
 ber unless he purchase goods from this association to the amount of 
 twenty dollars per year (subordinate granges and single men 
 excepted). 
 
 v. LIST OF MEMBERS. 
 
 A correct list of each member's name, pl.ace of residence, postofflce 
 address, and name of grange to which he belongs shall be kept at the 
 office of this association, signed by the secretary, and open to the 
 Inspection of any member; and no Patron shall be deemed a member 
 for the purpose of receiving any interest on his shares, or any dlvlden<l 
 of profits, or of voting, until his name appears on such list. 
 
 VI. CAPITAL. 
 
 The capital of this .association shall not exceed 8100,000, and sliali be 
 raised in shares of $5, which shall not be transferable except to mem- 
 bers of this association. 
 
 When a member assigns a share, the assignment shall be Indorsed 
 on the back of the certificate, and the same shall be surrendered to X\n: 
 directors before a new certificate can be issued to the assignee. 
 
 VII. NUMBER OF SHARES. 
 
 No member shall hold more than two hundred shares in the capital 
 of this association.
 
 MODEL RULES AND WORKING BT-LAWS 
 
 Vni. REDUCTION OF SHARES. 
 
 Should the directors have more money on hand than they can 
 profitably invest in the business of tlie association, tliey shall have 
 power to reduce the number of shares by purchasing such number of 
 shares as may be necessary, at the rate of Ave dollars per share, 
 together with interest thereon, at the established rate since the last 
 dividend of interest, the members having the greatest number of 
 shares being the first required to sell. 
 
 IX. NOTICE OF WITHDRAWAL. 
 
 Members may withdraw any sum over twenty-five dollars according 
 to the following scale, subject to the discretion of the directors; $25.00 
 to $50.00 on demand ; $50.00 to $100.00 in 30 days ; $100.00 to $200.00 in 60 
 days ; $200.00 to $500.00 in 90 days. 
 
 X. WITHDRAWAL OR EXCLUSION. 
 
 Any member may withdraw from this association, and any mem- 
 ber shall be excluded who ceases to be a member of the Order of 
 Patrons of Husbandry. 
 
 XI. CAPITAL RETURNED. 
 
 Upon the withdrawal or exclusion of any member, he shall receive 
 payment of the capital advanced by him, with all arrears of interest 
 and profife, If any, within six months after such withdrawal or 
 exclusion. 
 
 Xn. DISTRESS. 
 
 Any member being in distress may withdraw any sum he may have 
 in the funds of this association above five dollars, at the discretion of 
 the directors. 
 
 XIII. DECEASE OF MEMBERS. 
 
 Upon the decease of any member, the directors may repay to the 
 legal representatives of such deceased member all the capital owned 
 by such member at the time of his decease together with all arrears of 
 interest and dividends of profits, within six months after his decease. 
 
 XIV. REDUCTION OF STOCK. 
 
 The fixed stock shall be reduced as follows, viz: Ten per cent, per 
 annum on fixtures and two and a half per cent, on storehouses shall be 
 deducted quarterly from their value, as shown in the books of this 
 association. 
 
 XV. PROFITS. 
 
 The net profits of all business carried on by said association, after 
 paying the expenses of management, making the proper reduction in 
 value of fixed stock, and paying the interest on the capital thereof, as 
 aforesaid, shall from time to time be applied, by vote of the associa- 
 tion, at the quarterly meeting of tlie association, either to increase tiie 
 capital or business of the association, or for any educational or provi- 
 dent purposes authorized by the association, and the remainder shall 
 be divided among those who have purchased goods from the association 
 during the preceding quarter (to non-members one-half the proportion 
 of members), in proportion to the amount of purchases during the 
 quarter. 
 
 XVI. DIVISION OF PROFITS. 
 
 Each member shall receive out of the surplus profits of the associa- 
 tion, after providing for the expenses thereof, in each quarter, interest
 
 OF THE JOHNSON COUNTY ASSOCIATION. 279 
 
 not exceding ten per cent, per annum upon the capital standing to liis 
 credit in the books of the association as is declared at tlie quarterly 
 meetings of the association. 
 
 XVII. OFFICERS. 
 
 The officers of this association shall consist of a president, secretary, 
 treasurer, and eight directors, and two auditors. The president and 
 secretary shall be directors ex-offlcio. 
 
 XVIII. ELECTION OF OFFICERS. 
 
 The president, secretary, treasurer, one-half of the directors and 
 one of the auditors, shall be elected at the quarterly meeting in Janu- 
 ary, or at the next regular meeting thereafter, and the remainder at 
 the quarterly meeting in July, or at the next regular meeting there- 
 after, and shall hold their several offices for the term of one year, and 
 until others are elected. 
 
 XIX. ELIGIBILITY. 
 
 No member shall be eligible for the office of director (except at the 
 first and second elections after the organization) who has not been a 
 member six months; and no member shall be eligible for the office of 
 president (after the first election) who has not been a director in the 
 association. 
 
 XX. ELECTIONS. 
 
 All elections shall be by ballot. 
 
 XXI. VACANCIES. 
 
 All vacancies shall be filled temporarily by the directors until the 
 next regular meeting, when such vacancies shall be filled by the 
 association. '< 
 
 XXII. MANAGEMENT OF BUSINESS. 
 
 The directors shall have the general management and supervision 
 of the business of the association ; shall appoint the salesmen and 
 other employes, and shall assign to them such duties and compensation 
 as the directors may think fit. 
 
 XXIII. DIRECTORS. 
 
 The directors shall meet at such times and places as the association 
 may designate. 
 
 A majority of the directors shall constitute a quorum. 
 
 The directors shall in all things act for and in the name of the 
 association, and all acts and orders of the directors under the powers 
 delegated to them shall have like force and effect as if they were the 
 acts and orders of a majority of the members of the association at a 
 regular meeting thereof. 
 
 All questions at such directors' meeting shall be decided by a 
 majority of votes. 
 
 Any two of the directors may call a special meeting thereof by 
 giving three days' notice in writing to the secretary, but no business 
 shall be transacted at such special meeting except that specified in the 
 notice. 
 
 The directors shall convene the meetings of the association as is 
 herein mentioned, and shall cause the accounts of all ])iisiness carried 
 on in behalf of the association to be regularly entered In projx'r books, 
 and shall cause a statement of the accounts of the association, with all 
 necessary vouchers, up to the hist day of the previous quarter, or ten
 
 280 ItODBL EXILES AND WORKINO BY-LAWS 
 
 days before the quarterly meeting, to be made out and laid before the 
 auditors not less than ten days before the quarterly meeting of the 
 association. 
 
 All committees shall be subject to the directoi-s. 
 
 XXIV. MANNER OF CONDUCTING BUSINESS. 
 
 All money received on ac<!ount of shares, contributions or other- 
 wise, shall be paid to the treasurer, unless otherwise ordered by the 
 Association, and shall be withdrawn only on the written order of the 
 president, countersigned by the secretary, by a vote of the directors; 
 and so much of the funds of the association as are not wanted for 
 immediate use, or to meet the accruing liabilities, shall, with the 
 consent of the association at any regular meeting, be invested by the 
 directors. 
 
 The business of the association shall be conducted for cash. All 
 patrons trading with this association shall be furnished with checks 
 representing the amount of their purchases. 
 
 XXV. INVESTMENTS. 
 
 This association may invest such portions of its surplus capital in 
 any wholesale cooperative association as the association may determine, 
 notice of the same having been given in writing at a previous regular 
 meeting; and such investment shall be made under the supervision of 
 the directors. 
 
 XXVI. CHAIRMAN. 
 
 The president shall preside at all meetings of the association and of 
 the directors, and in his absence a chairman shall be elected pro-tem 
 from tj^e directors. 
 
 The chairman shall sign officially all contracts ; also the records of 
 proceedings of all meetings of the association and of the directors. 
 
 XXVII. SECRETARY. 
 
 The secretary shall attend all meetings of the association and of the 
 directors; summon all special meetings of the directors; keep a correct 
 record of the proceedings thereof; shall sign the same officially; shall 
 countersign all contracts ; and shall on all occasions, in the execution 
 of the duties of his office, act under the direction and control of the 
 directors. 
 
 An assistant secretary may at any time be appointed by the 
 directors. 
 
 XXVIII. TREASURER. 
 
 The treasurer shall be responsible for the money paid to him on 
 account of the association. He shall balance his cash account week- 
 ly, and furnish the secretary with a duplicate thereof, and shall, if 
 required, attend any meeting of the association, or of the directors. 
 
 XXIX. SECURITY. 
 
 BvBTy person appointed to any office requiring the receipt, man- 
 agement, or expenditure of money, shall, before entering ni)on the 
 duties of his office, give such security as may be deemed sufficient by 
 the directors. 
 
 XXX. SALARIES. 
 
 At any quarterly meeting of the association the majority of the 
 members present may assign to any officer of the association such 
 renumeration or salary as may be deemed proper.
 
 OF THE JOHNSON COUNTY ASSOCIATION. 281 
 
 XXXI. DISQTTALIFICATIOK. 
 
 Any director shall vacate his office if he holds any other office or 
 place of profit under the association, except such as may be assigned 
 to him by Rule 30, or if lie is interested or participates in the profits of 
 any contract witli the association. But no director shall vacate his 
 office on account of being a member of any company or association 
 which has entered into contracts witli or done any work for the associ- 
 ation of which he is a director: Provided, that such director shall 
 not vote in respect to such contract or work. 
 
 No salesman or other employe of this association shall serve, as a 
 director or auditor, or be allowed to vote for any officer of the 
 association. 
 
 XXXII. AUDITORS. 
 
 The auditors shall audit all accounts of the association, and see 
 that they are correctly kept ; and shall present, at each quarterly meet- 
 ing, a balance sheet of all the receipts and disbursements, and also of 
 the assets and liabilities of the association, signed by them, together 
 with a statement of the affairs of the association since the last quarter- 
 ly meeting, and of its condition then. They shall have authority to 
 call for and examine all records, vouchers, papers and documents 
 belonging to the association. 
 
 XXXIII. REGULAR MEETINGS. 
 
 Regular meetings shall be held on the second Tuesday in the 
 months of January, April, July and October, and at such other times 
 as the association may determine. 
 
 The first regular meetings in January, April, July and October shall 
 be called quarterly meetings. 
 
 XXXIV. SPECIAL MEETINGS. 
 
 Special meetings may be called by the directors, or by a majority 
 of the members, by publishing in the Kansas Patron at least ten days 
 before the time of meeting; and no business shall be transacted at 
 such special meeting except such as is specified in the notice for such 
 meeting. 
 
 XXXV. PLACE of meeting. 
 
 All regular meetings shall be held at such place as the association 
 shall determine ; or, in case of unforeseen emergency, at such place as 
 the directors may designate. 
 
 XXXVI. quorum. 
 
 One hundred members shall constitute a quorum. 
 
 XXXVII. EDUCATION FUND. 
 
 This association may appropriate two and one-half per cent of the 
 net profits of the business for educational purposes. 
 
 XXXVIII. COMPLAINTS. 
 
 All complaints shall be made to the directors in writing, signed by 
 some member of the association ; and the directors shall make such 
 Investigation and decision thereon as they shall deem proper, subject 
 to an appeal to the next regular meeting of tlie association, whose 
 decision shall be final; and all complaints and decisions shall be 
 entered In a book to be kept for that purpose, 
 XXXIX. SEAL. 
 
 This association shall have a seal.
 
 m 
 
 MODEL BULES AND WORKING BY-LAWS 
 
 XL. ORDER OF BU8INKS8. 
 
 1. Calling the meeting to order. 2. Reading and approving tlie 
 records of the previous meetings. 3. Reports of tlie officers. 4. Re- 
 ports of committees. 5. Unfinislied business. 6. New business. 
 7. Closing. 
 
 XLI. VOTING. 
 
 At all meetings of the association, or of the directors, each mem- 
 ber shall have one vote only. 
 
 XLII. AMENDMENTS. 
 
 These rules may be amended at any regular meeting, notice there- 
 of liavliig been given in writing, signed by some member, at a 
 previous regular meeting. 
 
 AMENDED RULES. 
 
 1. All dividend tickets must be presented for settlement with 
 vouchers of standing within sixty days after dividend is declared by 
 quarterly meeting, or otherwise void. 
 
 2. Tickets only given on goods bought at retail price for the use of 
 stockliolders or Patrons' families. 
 
 BY-LAWS OF THE LYONS COOPERATIVE ASSOCIATION. 
 
 L Officers. 
 
 Sec. 1. The officers of this company shall be a president, a secretary, 
 at treasurer, six directors, who shall constitute the board of managers, 
 and two auditors. 
 
 Sec. 2. The president shall preside at all meetings of the company 
 and of the board ; he shall sign all contracts ; also tlie minutes of the 
 proceedings of all the company's meetings. In the absence of tlie 
 president a chairman sliall be elected pro tern from the directors, who 
 shall perform all the duties of the president during his absence. 
 
 Sec. 3. The secretary shall attend all meetings of the company and 
 of the board of directors; summon all special meetings; and keep a 
 correct record of the proceedings thereof; he shall countersign all con- 
 tracts; receive proposals for admission, and keep the accounts and 
 papers of the company in such manner as the board of directors may 
 direct; he shall prepare all quarterly reports, receive all moneys due 
 the company, and at the close of every evening pay the same to the 
 treasurer. He shall be governed in the duties of his office by the 
 board of managers. 
 
 Sec. 4. The treasurer shall be responsible for all moneys paid to him 
 on account of the company; he shall pay the ordinary bills of the 
 company under the direction of the board of managers; balance his 
 accounts weekly, and furnish the secretary a duplicate thereof; and 
 attend all meetings of the company. 
 
 Sec. 6. The board of managers shall meet every Wednesday evening 
 at eight o'clock; any six members shall constitute a quorum. It shall 
 In all things act for and in the company's name, and acts and orders 
 under the powers delegated to it shall have the same force and effects 
 as if they were the acts and orders of a majority of the members of the
 
 OF THE LYONS COOPERATIVE ASSOCIATION. 283 
 
 company at a general meeting thereof. Every question at such meeting 
 shall be decided by a majority vote of the whole board of managers; 
 any two of the board may call a special meeting thereof by giving one 
 clear day's notice to the secretary. But at such special meeting no 
 other business but that specified in the notice shall be taken into con- 
 sideration. The board shall convene all meetings of the company on 
 such requisitions as are herein mentioned and shall cause accounts of 
 all business carried on in behalf of the company to be regularly enter- 
 ed in proper books, and shall cause a statement of the accounts of the 
 company, with all necessary vouchers up to the 21st day of July, 
 October, January and April in each year, to be made out and laid 
 before the persons appointed to audit the same not less than five days 
 before the day appointed for the quarterly meetings of the company ; 
 all committees which are or may be found in connection with this 
 company shall be subject to the board of managers, said board being 
 ex-offlcio members of all committees and they shall see that the laws 
 of the company are strictly adhered to. The auditors shall audit the 
 accounts of the company and see that they are correctly kept, and shall 
 lay before each quarterly meeting a balance sheet of all receipts and 
 disbursements and also of the assets and liabilities of the company 
 signed by them, together with a statement of the affairs of the company 
 since the last quarterly meeting and its then condition; they shall 
 have authority to call for and examine all records, vouchers, papers 
 and documents belonging to the company. 
 
 II. Members. 
 
 Sec. 1. The company shall consist of all members who shall have 
 subscribed to these by-laws and who have paid at least five dollars 
 into the capital stock of the association. 
 
 Sec. 2. Application for membership must be accompanied by the 
 recommendation of at least one member of the company and by the 
 membership fee, which is one dollar. The name, address and occupa- 
 tion of every applicant for membership must be posted in a con- 
 spicuous place in tlie company's store at least one week before being 
 voted upon by the board of managers, whose approval admits to mem- 
 bership; in case of rejection the membership fee shall be returned. 
 
 Sec. 3. In case of admission each applicant shall pay at least one 
 share before being entitled to the privilege of membership, and at least 
 fifty cent* per month thereafter until he shall own five shares, shall 
 sign these regulations, which signing shall constitute a contract 
 between the member and the company. 
 
 m. Election of Officers. 
 Sec. 1. The president, secretary, treasurer, three directors and one 
 auditor shall be elected at the annual meeting of the company, and 
 three directors and one auditor at the semi-annual meeting who sliall 
 hold their respective offices for the term of one year and until their 
 successors are elected and qualified except at the first election, when 
 all the officers shall be elected three of the directors and one auditor 
 to serve six months only. No member shall be eligible to otfice of 
 director (except at the first election) who has not been a member six 
 months and no member shall be eligible for the office of president 
 (except at the first election) who has not been a director or fli-st presi- 
 dent of the company. All elections shall be by ballot and a majority 
 vote of all the votes cast shall be necessary to elect.
 
 284 MODEL RULES AND WOBKIISTG BY-LAWS 
 
 rv. Meetings. 
 
 Sec. 1. The regular meetings of the company shall be held on the 
 second Wednesday after the first Saturday of the months of August, 
 November, February and May of each year. The meeting in August 
 shall be called the annual meeting; in February the semi-annual meet- 
 ing, and the meetings in November and May the quarterly meetings. 
 
 Sec. 2. Special meetings may be called by the board of managers, 
 or on petition of ten members, three days' notice to be given such calls 
 shall clearly set forth the object of the special meeting and no other 
 business shall be transacted thereat. 
 
 Sec. 3. Ten members shall constitute a quorum at any meeting; each 
 member shall have but one vote. Proxy votes shall not be allowed. 
 
 V. Shares. 
 
 Sec. 1. A share register shall be kept in which shall be entered the 
 Christian and surname, residence, occupation and date of entrance of 
 each member of the company, the number of shares held by each 
 member with the number and value of each share, the date when the 
 member became such with such other particulars as the board of man- 
 agers may deem necessary to afford a clear and accurate view of the 
 stock of the company. 
 
 Sec. 2. The transfer of all shares shall be registered In a similar 
 way. Any member not giving his proper address on entrance or 
 removal of residence to the secretary shall be fined twenty-five cents, 
 
 Sec. 3. No member shall be allowed to hold more than forty shares 
 in the funds of the company. No member shall be paid any dividends 
 in cash or trade until he own ten paid up shares (provided the shares 
 are not all taken by members) when he may receive either at his 
 pleasure. The secretary shall keep a book in which a member may 
 nominate in writing any person to whom his shares shall be transferred 
 at the time of his death. The board of managers may, if they think fit, 
 instead of making such transfer, pay to the person so nominated the 
 full pay-up value of the interest of the member at the time of his 
 death. 
 
 Sec. 4. Upon the death of a member of the company, his legal repre- 
 sentative shall, within fifteen days, notify the secretary in writing 
 stating the Christian and surname, residence and occupation of the 
 deceased, with satisfactory proofs of death, in order that the share or 
 shares of the deceased member may be registered in the name of such 
 legal representative. Members may assign and transfer shares sub- 
 ject to the approval of the board of managers. 
 
 Sec. 5. After paying the expenses of management, and if the profits 
 of the business shall warrant, interest will be paid on shares at the 
 rate of eight per cent per annum, payable quarterly; and if not, then 
 such lesser percentage as the business may permit and the board of 
 managers may determine. Interest shall not be computed on fractional 
 shares nor for a less period than one month. Shares accruing before 
 the twentieth of the month shall be reckoned as in for the full month. 
 
 VI. Profits. 
 After paying or providing for expenses of management, and for In- 
 terest on shares and setting aside at the rate of ten per cent per annum 
 to repair the deterioration on fixed stock, the net proceeds of all busi- 
 ness shall be divided quarterly among the members of the company In
 
 OF THE LYONS COOPERATIVE ASSOCIATION. 285 
 
 proportion to the amount of their purchases at the store during the 
 quarter, but the quarterly meeting shall determine what percentage 
 shall be paid to members and also to non-membere if they deem it 
 advisable. 
 
 "vn. Bonds. 
 
 Every person appointed to any office touching the receipt, manage- 
 ment and expenditures of money on account of the company shall 
 give such security as the board of managers may deem satisfactory 
 when so required of said board. 
 
 VIII. Management. 
 
 Sec. 1. The board of managers shall have the general management 
 and supervision of the company; shall appoint the manager, sales- 
 men and employes and shall assign to them such duties and compen- 
 sation as they may deem proper. 
 
 Sec. 2. The board of managers shall frame rules for the manage- 
 ment of the store or stores and any other branch of business in which 
 the company may engage; subject to the approval of the regular 
 meeting. These rules cannot be altered or amended except by a two- 
 thirds vote of the members present at a regular meeting fifteen days* 
 notice having been given by display in the store of the company. 
 IX. Penalties. 
 
 Sec. 1. Any member failing for three consecutive months to pay any 
 fines, debts, or other sums due the company may be suspended from 
 participation in the profits, and no dividends shall be declared on 
 purchases not paid in by end of quarter in which they were purchased. 
 
 Sec. 2. The board of managers shall have power to suspend any 
 member whose conduct has been injurious to the company and shall 
 report such action to the next regular meeting, when If a majority of 
 the members present sustain the board the person may be expelled. 
 The secretary shall give the accused five days' notice of such hearing. 
 
 Sec. 3. Expelled members shall not be eligible to join for one year. 
 
 X. Remuneration. 
 
 Sec. 1. At any regular meeting of the company the majority of the 
 members present may assign to the committees, auditors, or other 
 officers of the company such remuneration as seems to them advisable. 
 
 Sec. 2. No employe of the company shall be an auditor on any 
 account whatever. 
 
 Sec. 3. Any member of the board of managers shall vacate his office 
 if he is cariying on the same business as the company, if he becomes 
 bankrupt, if he be concerned in or participates in the profits of any 
 contracts with the company. But the above rules shall be subject to the 
 following exceptions : That no director or manager shall vacate his 
 office by reason of his being a member of any society or company which 
 has entered into contract with or done any work for the company of 
 which he is manager or director. Nevertheless he shall not vote in 
 respect to such work or contract; and if he does so his vote shall not 
 be counted. 
 
 Sec. 4. No director, president, secretary or treasurer while In office 
 shall be allowed to nominate or second the nomination of any member 
 to serve on the board of managers. 
 
 XI. Wording. 
 
 In construing these by-laws words importing the masculine gender 
 shall be taken to apply to females. Words Importing one person or
 
 286 MODEL RULES AND WORKING BY-LAWS 
 
 thing shall be taken to apply to more than one person or thing, and 
 words importing a class shall be taken to apply to the majority of that 
 class unless there is something in the context to prevent such 
 construction. 
 
 XII. Moneys. 
 
 All sums due from any member under the provisions of these by-laws 
 for subscription or otherwise shall be recoverable from him, his 
 executors, or administrators by legal process as debt due to the com- 
 pany ; and the secretary shall lay before the regular meeting a return 
 of all moneys due for any subscriptions or otlier debts due to the com- 
 pany; and of all moneys paid to every member under the provisions of 
 these by-laws since the last of such returns and a copy of each of such 
 returns shall be furnished to the board of managers, who, on the 
 resolution of any such meeting shall take such proceedings as they 
 deem advisable to enforce the payment of any sums so due. 
 
 XIII. Loans. 
 
 The board of managers may obtain by way of loan from any person 
 for the purpose of the company from time to time on the security of 
 bonds or promissory notes, signed by at least five of the board of 
 managers and countersigned by the secretary, such sum or sums of 
 money as any special or regular meeting of the members may sanction, 
 not exceeding two-flfths of the amount of the declared capital of the 
 company at such rate or interest and subject to such provisions for 
 repayment as are agreed upon on such advance. 
 XIV. Payments. 
 
 Should the board of managers have more cash on hand than they can 
 profitably invest, they shall have power to repay all loans contracted 
 under the thirteenth article. 
 
 XV. WITHDRAWAUI. 
 
 See. 1. Members may withdraw any sum of money over fifty dollars, 
 provided that in the opinion of the board of managers the funds of the 
 company will so allow. 
 
 Sec. 2. A member who has paid up all his shares may withdraw from 
 the company by giving notice of his Intention in writing to the secre- 
 tary, and any member may withdraw without paying up all his shares 
 with the consent of the board of directors. Upon the withdrawal or 
 exclusion of a member he shall receive a note of the company redeem- 
 able in six months bearing interest at the rate of eight percent per 
 annum for the amount of capital paid in by him with all the earnings 
 of said capital. 
 
 XVI. 
 
 Any member being in distress may withdraw any sum he may have 
 in the funds of tlie company above twenty dollars upon peiinission 
 being given by the board of directors. 
 
 XVII. Reserves. 
 
 For assuring each member the full value of his investment all undi- 
 vided balances or profits shall be paid into a reserve fund, the same to 
 be invested in the working capital of the company. 
 
 XVIII. Assessments. * 
 
 The board of managers shall have the power to levy assessments for 
 unpaid balances of subscribed stock, not to exceed twenty-five cents 
 per week for each member.
 
 OF THE LYONS COOPERATIVE ASSOCIATION. 287 
 
 XIX. Accounts. 
 
 Sec. 1. The books and accounts of the company shall be opened to 
 inspection of the members at all reasonable times. 
 
 Sec. 2. If any disputes arise betAveen any of the members under the 
 rules, or between members and tlie managers or salesmen in the store, 
 the same shall be settled by the board of directors or by arbitration, 
 and any member refusing to submit to arbitration shall be expelled. 
 
 Sec. 3. If any member has any complaint to make relative to the 
 qualities of or prices charged for goods tlie same should be presented 
 to the board of managers, who shall proceed to investigate them. 
 
 Sec. 4. Any member may likewise send to the board of managers 
 suggestions in writing for carrying into better effect the objects of the 
 company and it shall be the duty of the board to consider the same. 
 XX. Amendments. 
 
 These by-laws may be amemded at any regular meeting of the com- 
 pany by a majority of the members present and voting, provided 
 that a notice of the proposed amendment sliall be displayed in the 
 store fifteen days previous to such meeting. But no amendment shall 
 ever be entertained to allow any member more than one vote. 
 
 BY-LAWS OF THE TEXAS COOPERATIVE ASSOCIATION". 
 
 I. Membership. 
 
 Section 1. Any cooperative association of the Patrons of Husbandry, 
 or subordinate grange, may become a member of this association by 
 subscribing and paying for one or more shares of stock, and complying 
 with tlie charter and by-laws, and shall be entitled to one vote in the 
 meetings of the Texas Cooperative Association. 
 
 Sec. 2. Individual members of the Grange in good standing may 
 become members of this association by paying for one or more shares 
 of stock and by complying with the requirements of tlie charter and 
 by-laws, and will be entitled to but one vote in his own right; but may 
 cast as many as five votes by written proxies for other members of 
 the association. 
 
 Sec. 3. Liabilities. Incorporators and shareholders shall be liable 
 for debts contracted by the association only to the amount of shares 
 held by them. 
 
 IL Meetings. 
 
 Section 1. The Texas Cooperative Association, Patrons of Husbandry, 
 shall meet annually, by 10 o'clock a. m., on the second Wednesday in 
 January of each year, at such place as may be designated by a majority 
 vote of the board of directors. Special meetings of the association 
 may be called by the president with the consent of a majority of the 
 board of directors. No business shall be transacted at such special 
 meetings except that specified In the call. 
 
 Sec. 2. The annual meetings of the board of directors shall be held 
 on the day preceding the annual meetings of the association. 
 
 Sec. 3. Special meetings of the board of directors may be called by 
 the president at any time on twelve days' notice to each, which notice
 
 288 MODEL RULES AND WOEKING BT-LAWS 
 
 shall be sent by mail. No business shall be transacted at such special 
 meetings except that specified in the notice. 
 
 III. QUORUM. 
 
 Section 1. At all meetings of the association fifteen members shall 
 constitute a quorum, exclusive of individual proxies held; provided 
 that proxies (or delegates) from associations or granges shall be 
 counted in the number necessary for a quorum. 
 
 Sec. 2. At all meetings of the board of directors seven shall consti- 
 tute a quorum. 
 
 IV. Elections. 
 
 Section 1. There shall be elected at each annual meeting of the asso- 
 ciation a board of thirteen directors. It shall be the duty of the board 
 of directors to elect the general business manager, who sliall be a 
 patron of husbandry in good standing ; and no one shall be employed 
 in the business of the association without their advice and consent, 
 and they shall have power to discharge any and all persons employed 
 by them under their direction. All vacancies in the offices of the asso- 
 ciation shall be filled by the president until the next regular meeting 
 of the board of directors. All elections shall be by ballot. 
 
 Sec. 2. The board of directors shall elect from their number a presi- 
 dent, treasurer and secretary, who shall serve for one year and until 
 their successors are elected and qualified. 
 
 Sec. 3. The board of directors shall be chosen from the shareholders 
 of the Texas Cooperative Association, Patrons of Husbandry, and dele- 
 gates who may be sent by the cooperative associations or granges own- 
 ing stock in the association. 
 
 v. Duties of Officers. 
 
 Section 1. President. It shall be the duty of the president to preside 
 at all meetings of the association and board of directors, and liave 
 general supervision of the association, receive and carefully preserve 
 all bonds which may be executed to the association, and in his absence 
 the members shall elect a president pro tern. 
 
 Sec. 2. Treasurer. The treasurer shall be responsible for all money 
 paid him on account of the association, and shall only pay orders 
 drawn by the president, countersigned by the secretary, with the seal 
 attached. He shall balance his cash accounts weekly, and furnish 
 monthly reports to the president ; also make a report to the directors 
 at their annual meetings. 
 
 Sec. 3. Secretary. The secretary shall attend all the meetings of 
 the association and directors; summon all special meetings of the 
 board of directors, keep a correct record thereof; keep account of the 
 stock taken In the association, and deposit with the treasurer all 
 money received by him, at least once in every tliirty days, and perform 
 such other duties as may be assigned him by the board of directors. 
 
 Sec. 4. Board of Directors. Tlie board of directors shall in all things 
 act for and In the name of the association, and all acts and orders of 
 the directors, under the power delegated to them, shall have like force 
 and effect as the acts of the association at a regular meeting thereof. 
 All questions shall be decided by a majority of the votes present. 
 The directors shall designate the salaries or compensation to be 
 allowed the officers and employes, and report to the association at 
 each annual meeting the condition of the association.
 
 OF THE TEXAS COOPERATIVE ASSOCIATION. 289 
 
 Sec. 5. The general business manager sliall transact the business of 
 the association in the city of Galveston, or such other place or places 
 as may be selected by the directors. He shall appoint the clerks, with 
 the advice of the president and the approval of the board of directors. 
 He shall make monthly statements of the business to the president 
 and to the board of directors at their annual meeting, and at such 
 other times as they may require. 
 
 Sec. 6. It shall be the duty of the secretary, at the expiration of 
 sixty days after each annual report of the board of directors, to issue 
 certificates of stock for all uncalled for profits not otherwise provided 
 for, to the amount of even shares, in the name of the owner thereof, 
 and send the same to him ; also to issue drafts for all fractional parts 
 of shares remaining, when applied for. 
 
 VI. Bonds. 
 
 The secretary, treasurer and business manager shall give bonds in 
 such sums as may be required by tlie board of directors for the faith- 
 ful performance of tlieir several duties, and to secure the payment of 
 all money and other property coming into their hands; provided that 
 none of the aforesaid officers shall have a voice in determining the 
 amounts of their bonds, or the approval of the same. 
 
 VII. Books. 
 
 Section 1. Regular sets of books shall be kept under the supervision 
 of the general business manager, secretary and board of directors, in 
 which sliall be kept exact records of all business done with members 
 and customers, setting forth in detail tlie dividends due each share- 
 holder on stock, and of patrons, customers of this association. 
 
 Sec. 2. Clerk-books shall be furnished each member of this associa- 
 tion, in which shall be entered the number of shares in his name, the 
 amount of business transacted with the association, the interest and 
 accumulation on stock, the dividends on purchases, the rate of divi- 
 dends declared, and amount withdrawn; also the times of the meet- 
 ings of the association and board of directors- 
 
 VIII. Certificates of Stock. 
 
 Certificates of stock shall be issued to shareholders after the follow- 
 ing form : Incorporated the 5th day of July, A. D., 1878. Capital Stock, 
 one hundred thousand dollars (8100,000). Shares, five dollars ($5) each. 
 
 This certifies that of the County of and State of Texas, and 
 
 a member of Grange No. , is the owner of share No. in the 
 
 Texas Cooperative Association, Patrons of Husbandry, subject to the 
 rules of the association. In witness whereof, the seal of the associa- 
 tion and the signatures of the president and secretary are hereto 
 
 affixed, at the , this day oT 18. 
 
 , President. 
 
 , Secretary, 
 
 IX. Seals. 
 This association shall have a seal. 
 
 X. Capital Stock. 
 Section 1. The capital stock of this association shall be raised by the 
 sale of certificates of stock, in shares of five dollars or its multiples. 
 
 Sec. 2. The money raised from sale of certificates of stock shall be 
 employed by the board of directors in accordance with Article 2 of 
 Charter. 
 
 19
 
 290 MODEL RULES AN^D WORKING BY-LAWS 
 
 XI. Profits and Divisions of Profits. 
 
 Section 1. The profits of all the business transacted by the associa- 
 tion, after paying all expenses of the management, sliall be disposed 
 of in the following manner at the annual meeting of the board of 
 directors: First, shareholders shall be allowed ten per cent interest 
 per annum on paid up stock; secondly, a jwrtion may be set apart, at 
 the discretion of the board of directors and by consent of the associa- 
 tion, to increase the capital. 
 
 Sec. 2. After making provisions in the manner above stated, tlie 
 remaining net profits shall be divided pro rata among the stockholders 
 and patrons, based upon the profits derived from the business fur- 
 nished; shareholders receiving full dividends; patrons not sharehold- 
 ers, half dividends. 
 
 Sec. 3. The profits arising from the business furnished by non pa- 
 trons, and one-half of the profits on tliat of patrons of husbandry who 
 are not shareholders, shall constitute and be known as the accumula- 
 tive fund, and shall be divided annually pro rata among the stockhold- 
 ers, based upon the number of paid-up shares; and stock shall be 
 Issued for the same. 
 
 xn. Complaints. 
 
 All complaints shall be made to the general business manager, or to 
 any member of the board of directors, in writing, signed by some mem- 
 bers of the association. Tlie directors shall make such investigations 
 and decisions thereon as they may deem proper, subject to an appeal 
 to the next regular meeting of the association, whose decision shall be 
 final. All complaints and decisions sliall be entered in a book kept 
 for that purpose. 
 
 Xin. Amendments. 
 
 These by-laws may be altered or amended at any annual meeting of 
 the association by a majority vote of the stockholders present. 
 
 BY-LAWS OF THE FRUIT GROWERS* UNION, HAMMON- 
 TON, N. J. 
 
 Article I. 
 The name of this organization shall be "The Fruit Growers' Union 
 and Cooperative Society (Limited)." 
 
 Article n. 
 The officers of the society shall consist of a president and eight 
 directors, to be elected from the members annually by ballot; and at 
 the same time there shall be elected an auditing committee of three ; 
 a plurality of votes to constitute an election. All vacancies shall be 
 filled by the board of directors. 
 
 ARTICLE III. 
 Section 1. Annual meetings of the society for the election of officers 
 and the transaction of other business shall be held on the last Satur- 
 day in January, at two (2) o'clock in the afternoon. Place to be desig- 
 nated in the call.
 
 OF THE FRUIT GROWERS' TTIflON". 291 
 
 Sec. 2. Special meetings of the society shall be called by the presi- 
 dent wlienever a majority of the directors shall deem it expedient, or 
 wlienever ten or more members request the same in writing. The 
 notice of said meeting and the object in calling it shall be printed and 
 mailed to each member in due season. A quorum for the transaction 
 of any business at any regular or special meeting shall consist of not 
 less than twenty (20) members. 
 
 Sec. 3. The president may call meetings of the board of directors 
 from time to time for consultation, and shall call meetings when re- 
 quested by three directors. 
 
 Article IV. 
 Such real and personal estate as the purposes of the society require 
 may be acquired and held, but at no time shall the value of such estate 
 exceed the sum of twenty-five thousand dollars ($25,000); provided 
 that this limitation shall not apply to merchandise kept for sale. 
 
 Article V. 
 
 Shares may be transfeiTed on approval of the board of directors; 
 but where approval is not given, they shall purchase such shares at a 
 price not exceeding their par value, but no share shall be transferred 
 if the liolder is Indebted to the society. 
 
 Article VI. 
 
 Members may withdraw at any time by giving notice in writing to 
 the secretary, and paying all Indebtedness to the society. 
 Article VII. 
 
 Whenever in the opinion of the directors it is desirable to invest any 
 portion of the capital of the society in a wholesale cooperative store 
 they may report the same to a regular or special meeting of the society, 
 and the recommendation shall be determined by a majority vote of 
 the members present. 
 
 Article VIII. 
 
 The board of directors may determine from time to time what credit 
 may be given to the members, and a monthly report shall be made to 
 the board from the person in charge of the store showing the amount 
 of busines done, and the amount of indebtedness ; and under no cir- 
 cumstances shall credit be given to any member wlio is one year in 
 arrears to the society. The board shall use every effort to collect its 
 bills, and to Insure the safety of the society in the execution of this 
 part of its business. 
 
 Article IX. 
 
 The auditing committee shall examine all accounts of the society 
 and shall make a detailed report of its financial condition, prior to the 
 annual meeting, which shall be printed and mailed by the secretary 
 to the members; and they shall receive such compensation for sa'd 
 work as the directors may consider just. 
 Article X. 
 
 Section 1. The mercantile and shipping departments shall be sepa- 
 rate and distinct, and the expenses of each department shall be taken 
 from its own resources. 
 
 Sec. 2. Six per cent annually shall be paid on all shares of stock at 
 the beginning of each financial year. A sum equal to five per cent of 
 tlie net profits shall be annually set aside as a contingent fund until
 
 293 MODEL BULES AND WOEKINO BY-LAWS 
 
 the tuuount reaches thirty per cent of the said stock. The amount 
 thus xttquired shall be taken from the profits of the two departments 
 in such proportion as the directors may deem just. The remaining 
 profits, if any, sliall be divided as follows : 
 
 First, On shipments in proportion to gross sales, which shall be com- 
 puted from members' bills ; and for this purpose all bills must be filed 
 in the ofiftce of the secretary on or before December 1st. 
 
 Second, On merchandise, in proportion to amounts purchased, except 
 that non-members shall receive half the rates of members. 
 
 Sec. 3. Dividends shall be declared annually in both departments, 
 and profits from shipments may be paid In stock or in cash, and profits 
 from sales of merchandise may be paid in goods or in cash, as the 
 board of directors may determine ; but no part of any dividend shall 
 be paid to a person indebted to the society. 
 Article XI. 
 
 The society shall possess a seal of the same device as the one in use 
 prior to reorganization, which shall be in the custody of the secretary, 
 and shall be stamped upon such papers as are usually sealed or that 
 the law may require. 
 
 Akticle XII. 
 
 The board of directors shall elect one of their number treasurer, also 
 a secretary, agent, and such other employes as the society may need 
 for the transaction of its business, and shall fix the compensation of 
 all its employes. They shall also provide for the issue oi. certificates 
 of stock, which certificates shall be signed by president and treasurer. 
 Article XIII. 
 
 The treasurer shall receive the moneys of the society from the secre- 
 tary; shall disburse the same in accordance with the direction of the 
 board of directors, only upon orders signed by the president and coun- 
 tersigned by the secretary. He shall keep a shipping and trading 
 account, and an account of all receipts and disbursements, and make 
 a written report to the board of directors, when required by them, of 
 the financial condition of the society, and shall pay over to his suc- 
 cessor in ofiBce all moneys and deliver over all books and papers be- 
 longing to the society. 
 
 Article XIV. 
 
 Each member shall have but one vote, which must be cast in person. 
 Article XV. 
 
 Section 1. The society will assume the position of agent for the 
 various commission merchants with whom its members do business; 
 and for this service said merchants shall be required to pay into the 
 treasury of the society such commission as shall be fixed by the board 
 of directors on all sales made for its members. 
 
 Sec. 2. A book, to be known as the Merchants' Book, shall be opened 
 by the secretary of this society, in which shall be recorded the names 
 of all merchants complying with this requirement. Such list to be 
 lieaded by the name of the town or city in which they are located. 
 
 Sec. 3. Upon the oi>ening of a new market, careful inquiry shall be 
 made concerning the standing of the merchants of such locality, and 
 report the names of such as are reliable and subscribe to our condi- 
 tions, which names shall then be added to the mercliants' book; and a 
 list of such merchants shall be forwarded by the directors to every 
 member of the society on or before the first of May, annually.
 
 OF THE FRUIT GROWERS' UKION. 293 
 
 Article xvi. 
 
 At the request of members, new commission houses may be entered 
 on the merchants' book by order of the directors ; provided, said mem- 
 bers furnish satisfactory evidence of the financial standing of such 
 houses. 
 
 Article XVII. 
 
 Members shipping to commission liouses not entered our books, 
 except in cities where we do no business, sliall forfeit tlie sum of one 
 dollar for each offense, which amount shall be taken from such offend- 
 int( members' dividends. They shall also forfeit all claims on the soci- 
 ety to look after their losses for that year. 
 Article XVIII. 
 
 These by-laws may be altered or amended at any regiilar meeting, or 
 at any special meeting called for that purpose, by a two-thirds vote of 
 those present at such meeting. 
 
 BY-LAWS OF THE CALIFORNIA FRUIT UNION. 
 
 Trustees. 
 Section 1. The powers and authorities necessary for the full man- 
 agement and care of the affairs of tlie corporation shall be vested in a 
 board of trustees, nine in number, llnee of whom may be non-produc- 
 ers, engaged in buying and sliippiiig fruit, who shall be elected by the 
 stockholders annually, on the third Wednesday in January of each 
 year. No person shall be eligible for the office of trustee who shall not 
 hold, at the time of his election, five shares of the stock of the com- 
 pany. And the office of any trustee shall become vacant whenever he 
 shall cease to hold said minimum quantity of stock, associated with 
 equivalent producing acreage. At the first meeting after their elec- 
 tion, whlclj must be held within ten days thereof, the board of trustees 
 shall organize by the election of one of their number as president, and 
 a second as vice-president, for tholr term. Tliey sliall also elect a 
 treasurer, who may or may not be of their number, and may be a cor- 
 poration; and asecretarj', who need not necessarily be a stockholder 
 They sli.-rfl also appoint a general manager, who may or may not be 
 one of their number, to hold office rlnriiig the pleasure of the board, 
 and to perform such duties as tlie board may, by vote, prescribe. They 
 shall fix the salaries and amount of bonds of the president, vice-presi- 
 dent, secretary, treasurer, and general manager, and see to the jiroper 
 tiling of such bonds, and their maintenance In unimpaired suflicieiiey 
 of security. They may fix their own times and places of meeting, for 
 the transaction of the business of the corporathm, and may adopt such 
 rules and regulations for their government and for the managciiKMil of 
 the affairs of the cori>oratlon, as they may deem desirabh^. and not 
 inconsistent with the provisions of these laws. Trustees shall receive 
 no compensation for their services to the corporation as such, hut shrill 
 be paid their actual travelinc expenses In attendance upon any meet- 
 ing of the board of trustees.
 
 294 MODEL BULES AND WORKING BY-LAWS 
 
 The President. 
 
 Sec. 2. The president shall be the executive officer of the corpora- 
 tion, and shall preside at all meetings of the stockholders and of the 
 board of trustees; shall sign, witli the secretary, all certificates of 
 stock, deeds, contracts, leases ; and generally exercise all other authori- 
 ties and perform all other duties connected with the affairs of the cor- 
 poration, requisite and appropriate to such office. He shall receive 
 such compensation as may be fixed by the board of trustees, for his 
 services to the corporation as president, and shall be allowed actual 
 traveling expenses, in attendance upon any business appertaining to 
 the affairs of the corporation. 
 
 The Vice-President. 
 
 Sec. 3. The vice-president shall, in the absence or other incapacity 
 of the president, perform his duties and exercise his powers, being 
 subject to the same rules as to compensation and expenses, when act- 
 ing as such president. 
 
 Meetings. 
 
 Sec. 4. Special Meetings. THie president, or, in his absence, the vice- 
 president, shall call special meetings of the stockholders of the corpo- 
 ration, or the board of trustees, whenever, in his judgment, the inter- 
 ests of the corporation require, or at any time on the written request 
 of ten stockholders of the corporation; causing, in the case of the 
 stockholders, two weeks' notice of the meeting and its objects to be 
 published in some newspaper in the county in which the corporation's 
 principal business office is situated; and in the case of the board of 
 trustees, at least three days' notice to each member of the board, per- 
 sonally or in writing, addressed to his last known place of abode; pro- 
 vided, that when all the stockholders of the corporation, or all the 
 members of the board of trustees, shall be present at any meeting, 
 however convened, and shall sign a written consent thereto in the 
 minutes thereof, business of any nature may be transacted thereat, in 
 like manner and with like effect as if such meetings were formally 
 called. At each annual meeting of the stockholders, to be held as 
 before provided, on the third Wednesday of each year, the president 
 shall submit a report of the operations of the corporation for the year 
 preceding, accompanied by detailed reports from the general manager, 
 secretary and treasurer. 
 
 Stock. 
 
 Sec. 5. Subdivision 1. The capital stock of this corporation shall be 
 evidenced by certificates, duly signed by the president and secretary, 
 consisting of two hundred and fifty thousand (250,000) shares, of the par 
 value of one dollar (SI) per share ; and certificates may be issued prior 
 to the full payment of the par value, subject to the provisions of this 
 by-law. Each subscriber must, upon the issuance of his certificate, 
 pay to the secretary twenty-five per cent of the par value, and there- 
 after, on the call of the board of trustees, must pay twenty-five per 
 cent of such par value until the whole is fully paid. 
 
 Subdivision 2. No person shall be admitted as a stockholder in this 
 corporation, either by original subscription or by purchase, transfer or 
 otherwise, nor shall any certificate of stock be issued to any person, 
 unless such person is the owner of either one (1) acre of orchard, or one 
 (1) acre of vineyard or shipping grapes, or one (1) acre of small fruits
 
 OF THE CALIFORNIA FRUIT UNION. 295 
 
 or vegetables, suitable for shipping beyond the limits of the State of 
 California, for each share of stock which he claims to have issued or 
 transferred to liim. Any non-producer engaged in buying and shipping 
 fruit may become a member of the union by taking two hundred (200) 
 sliares. 
 
 Subdivision 3. The secretary may require from any person claiming 
 the issuance or transfer of a certificate of stock, an affidavit, showing 
 that lie is qualified to own the same under the provisions of Subdivis- 
 ion 2 hereof. 
 
 Subdivision 4. When any person to whom stock has been issued, in 
 accordance with the provisions of Subdivision 2 hereof, shall cease to 
 possess the qualifications required by said Subdivision 2, he shall, ipso 
 facto, to the extent to which he shall so have ceased to possess such 
 qualifications, cease to be or to have any rights as a stockholder of 
 this coi-poration, except that he may transfer his stock to any person 
 qualified to be admitted as a stockholder, or may surrender the same 
 to the corporation, in accordance with the provisions hereof: pro- 
 vided, however, that the representative of the estate of a deceased, 
 insolvent or bankrupt stockholder may exercise ownership of the 
 stock of such deceased, insolvent or bankrupt stockholder, so long as 
 his estate shall continua to own the orcliard, vineyard or vegetable 
 land necessary to qualify the original owner to hold such stock. 
 
 Subdivision 5. When any stockholder shall cease to be qualified as 
 such, he may deJiver up to the secretary his certificate of stock, which 
 shall thereupon be canceled, and he shall be repaid by the corporation 
 the amount he shall have paid thereon. 
 
 Subdivision 6. This by-law shall be printed in full on the back of 
 each certificate. 
 
 General, manager. 
 
 Sec. 6. The general manager shall, by authorization of the board of 
 trustees, take general supervision of the business of the corporation, 
 in preparing for the forwarding to markets of sale and the selling in 
 such markets, all the fruit and fruit products and other produce under 
 tlie control of the corporation. He shall, by and with the assistance of 
 tlie secretary, district the whole State into produce districts, grotiped 
 territorially with reference to the natural common shipping point; 
 sliall cause to be prepared reliable returns of the number and variety 
 of trees and vines in each said district, their estimated yield each 
 sliippiiip season, to the end that an approximately reliable calculation 
 may be made in advance of each season's shipping operations, of the 
 quantities and varieties for which markets must be found. He shall 
 collect, (litest and tabulate all this Information, so that it may be sea- 
 sonably an<l periodically placed before the trustees of this corporation. 
 In all arrangements for shipping and marketing, he shall be clothed 
 with suoli powers and authority by the board of trustees as shall be 
 b<!st calculated to make his dispositions effective, and result benefi- 
 cially to the Interests of the stockholders of this corporation. 
 Secretary. 
 
 Sec. 7. The secretary shall be the custodian of the records of the 
 corporation. He shall keep ftill minutes of the proceedings at all 
 meetings of the stockholders and of the board of tnistees. He shall* 
 jointly with the president, sign all certificates of stock, always strictly
 
 296 MODEL RULES AND WOBKING BY-LA.WS 
 
 In accordance with Section 6 hereof, regulating stock issue and tranp- 
 fers, keeping proper books of record thereof; shall make in due fonn, 
 In accordance also with Section 5 hereof, all transfers of stock, wlien- 
 ever required, carefully canceling all retired stock certificates; sliall 
 keep an accurate account of the stockholders of the corporation ; sliall 
 countersign all contracts, deeds and leases signed by the president 
 under the direction of the board of trustees, keeping an accurate 
 record of the same. He shall collect of the subscribers to stock in tliis 
 corporation the amount of their contribution to its capital, and pay 
 the same over to the treasurer of the corporation. He shall keep 
 accurate accounts of the receipts and expenditures of the corporation, 
 full and detailed books of account with the various individual sub- 
 scribers consigning produce to the corporation for sale, rendering 
 proper statements thereof ; also full and detailed accounts of all sliip- 
 ments by the corporation. He shall, in connection with the general 
 manager, as provided in Section 6 hereof, cause to be prepared and 
 periodically issued to the trustees, for the exclusive benefit of the cor- 
 poration, reports and estimates of tlie probable fruit yield of each sea- 
 son, and report on Eastern consumption markets; in fact, establishing 
 and maintaining, in the highest possible efficiency, a department of 
 statistics, where everything calculated to promote the interests of the 
 stockholders of this corporation may be carefully collected, digested, 
 and periodically published to the members of this corporation. He 
 shall Issue the proper notices of all meetings of the stockholders and 
 board of trustees. He shall, in all other respects, perform such other 
 duties as may be appropriate to the ofllce of secretary, and be required 
 by the board of trustees. 
 
 Treasubeb. 
 
 Sec. 8. The treasurer shall have charge of the finances of the corpo- 
 ration ; shall receive from the secretary, as hereinbefore provided \n 
 Section 7, all avails from disposal of stock and proceeds from assess- 
 ments of stock of the corporation, depositing the same in bank or de- 
 pository, to be selected by the board of trustees, to the credit of the 
 corporation, thence to be drawn only on the order of the president and 
 secretary. He shall collect and receive all moneys belonging to the 
 corporation, from whatsoever source derived. He shall furnish a good 
 and sufficient bond for the safe custody of the same on the call of, and 
 to the satisfaction of, the board of trustees. He shall keep proper 
 books of account, at all times open to the inspection of stockholders, 
 and at each annual meeting of the stockholders he shall submit a 
 report, accompanied by proper vouchers, of the corporation for the 
 preceding year. He shall also make such partial reports as may be 
 called for by the board of trustees at any meetings of the board, or of 
 stoi-kholders, other than the annual meetings. He shall make all nec- 
 essary disbursements for the current transaction of the affairs of the 
 corporation, in accordance with whatever system the board of trustees 
 may direct. 
 
 Quorum, votes. Proxies. 
 
 Sec. 9. Stockholders representing a majority of the outstanding 
 stock of the corporation, and a majority of the board of trustees, re- 
 spectively, shall constitute a quorum for the transaction of business at 
 all meetings of their several bodies. All questions at meetings of the
 
 OF THE CALIFORN^IA FRUIT UNIOK. 297 
 
 board of trustees shall be decided by the vote of a majority of the 
 members present; all questions before meetings of the stockholders 
 shall be decided by voting of shares, one vote to each share of stock 
 actually owned by an owner of an equivalent acreage of orchard, vege- 
 tables, small fruits or vineyard of grapes, and no stock shall be recog- 
 nized as entitled to a vote, unless so voted by an owner of such equiv- 
 alent acreage, as before mentioned. Voting by proxy shall only be 
 allowed when the proxy is of his own right an actual owner of stock 
 in the corporation, with an equivalent ownership of orchard and vine- 
 yard. The majority of votes cast in accordace with the foregoing 
 shall decide all questions at meetings of the stockholders. 
 Guarantee, Shipments, Sales. 
 Sec. 10. All stockholders shipping through the Union shall be re- 
 quired to file a good and sufficient guarantee with the secretary of the 
 Union, to indemnify the said Union against all losses from non-pay- 
 ment of freights, or for any sales of fruit or vegetables not covering 
 exi)enses on his or their shipments. No fruit or vegetables shall be 
 shipped through the Union, except the product of acreage duly repre- 
 sented by ownership of stock in the Union, upon which stock all calls 
 or assessments shall have been paid. The board of trustees are au- 
 thorized to sell fruit at auction, when in their judgment they think it 
 best to do so. 
 
 Division of Profits. 
 
 Sec. 11. In the division of the net profits of the Union there shall be 
 allotted to the stockholders of the Union dividends of not exceeding 
 six per cent per annum on their stock; next, there shall be allotted 
 two per cent to a reserve fund of the Union; and all the remaining 
 profits shall be divided among the stockholders of the Union, who con- 
 sign their produce through said Union, in proportion to the amount, in 
 selling value, of their produce so consigned by them ; the intent thereof 
 being to make the Union essentially a " cooperation " for the profit of 
 fruit-growers supporting it. 
 
 Local Corporations. 
 
 Sec. 12. Local corporations, associations, co8perative unions, or other 
 bodies, corporative or otherwise, which are already organized, or 
 which may be hereafter organized, which represent and which are 
 duly empowered to act for a community, or for the fruit producers of a 
 special locality or localities acting in unison, may subscribe to the 
 capital stock of this corporation as an organization, to the extent of a 
 number of shares equivalent to the acreage of the individual owners 
 or producers composing such organization, and such stock subscrip- 
 tions and the issue thereof shall be subject to all the rules and regula- 
 tions for stock issue, transfer, voting, etc., hereinbefore prescribed for 
 Individual stockholders. 
 
 Surrender of Stock. 
 
 Sec. 13. Any stockholder, while still qualified as such, may at any 
 time surrender and deliver to the secretary his certificate of stock for 
 cancellation, and the same shall thereupon be cancelled, provided it is 
 fully paid, or he then pays it up fully. From the time of such surren- 
 der of such stock he shall no longer be a stockholder In said corpora- 
 tion, and by such surrender he shall forfeit whatever be may have 
 paid on such stock.
 
 298 MODEL BULES AND WORKIKG BY-LAWS 
 
 Limitation of Debts. 
 Sec. 14. No debts shall be incurred for this Union, by Its officers, 
 exceeding the aggregate amount of ten thousand dollars (|;10,000) at 
 any one time, except for freights on produce handled by or through 
 the Union. 
 
 Amendment of By-Laws. 
 Sec. 15. These by-laws may be amended without notice, by a vote of 
 a majority of the subscribed stock, upon which at least twenty-five 
 per cent of the par value shall have been paid in, at the first annual 
 meeting of stockholders ; thereafter they may be amended by a vote 
 of two-thirds () of such subscribed stock, upon which all calls shall 
 have been paid in, at any regular or called meeting, provided that due 
 notice of such amendment shall have been given at a previous meet- 
 ing, or a notice through the mail, by the secretary, at least ten (10) 
 days prior to date of meeting, shall have been addressed to each stock- 
 holder of the corporation at his last known residence. 
 
 KANSAS ALLIANCE EXCHANGE COMPANY. 
 Constitution. 
 
 1. The name of this corporation shall be The Kansas Alliance 
 Exchange Company. 
 
 2. The purposes for which this corporation is organized are : To con- 
 duct a general mercantile business; to act as agent for the purchase 
 and sale of all kinds of farm and orchard products, and general for- 
 warding agents for all kinds of commodities; to erect, manage and 
 opeT&te warehouses, stock yards, grain elevators, packing establish- 
 ments, and all such other enterprises as may be found necessary or 
 advisable to profit or betterment. 
 
 3. This corporation shall have the power, by and under its corporate 
 name, to enjoy the following rights and privileges, to wit : It shall be 
 capable in law to purchase, receive and hold and enjoy lands, goods 
 and chattels, of any kind or effect whatsoever, the same to grant, sell 
 and dispose of, sue and be sued, plead and be impleaded, contract and 
 be contracted with, to make a common seal, to alter or break the same, 
 to establish and put into execution by-laws governing the corporation, 
 and to do a printing and publishing business. 
 
 4. The capital stock of this corporation shall be $500,000, divided into 
 100,000 shares of $5 each, and business shall be begun as soon as $10,000 
 shall be subscribed and paid in. 
 
 6. Subscriptions for shares of capital stock shall be made by sub- 
 alliances, and by individual members of the same, and shall be 
 accompanied by the full amount of the stock subscribed. 
 
 6. All male members shall subscribe at least $1 to the sub-alliance 
 or individual stock, to enable them to enjoy all the benefits of the 
 Exchange : Provided, That no alliance or individual shall own more 
 than fifty shares of stock.
 
 OF THE KAKSAS ALLIANCE EXCHANGE. 299 
 
 7. Receipts will be given for fractions equal to one-fifth of a share, 
 but representation shall only be allowed to full shares. 
 
 8. Stock shall be non-assessable and non-transferable, except to 
 members of the Fanners' Alliance. 
 
 9. Holders of fractional sliares shall be entitled tofullbeneflt'of mem- 
 bership in the association, except representation. 
 
 10. Each sub-alliance shall be entitled to one trustee stockholder, 
 who shall be elected at the regular election of ofilcers. He shall repre- 
 sent such sub-alliance in the meeting of the trustee stockholders, from 
 and for the sub-alliances in that county, and shall be entitled to as 
 many votes as he represents shares of stock. 
 
 11. Individual stockholders shall be entitled to one vote for each 
 share of stock by them owned, and may be represented in person or by 
 proxy at any meeting of the county convention of trustee stockholders. 
 
 12. The sub-alliance trustee stockholders shall at their regular annual 
 meeting elect from their number one delegate for all shares of stock 
 owned in the county, who shall be known as county trustee stockholder, 
 and shall be authorized to represent the stock held in that county in 
 the State meeting of trustee stockholders of the corporation, and shall 
 be entitled to as many votes as he represents shares of stock. Each 
 trustee stockholder shall be the representative of the Exchange in his 
 alliance, and shall give bond in the sum of $ for the faith- 
 ful performance of duty. 
 
 13. The regular annual meeting of the sub-alliance trustee stock- 
 holders shall be at the same time and place as the regular quarterly 
 meeting of the county alliance, in October of each year. 
 
 14. The regular annual meeting of the county trustee stockholders 
 shall be at the time and place of the annual meeting of the Farmers' 
 State Alliance of Kansas. 
 
 15. The county trustee stockholders shall elect annually a board of 
 seven directors from the stockholders, four of whom shall constitute a 
 quorum. 
 
 16. The board of directors shall elect from their number a president, 
 vice-president, secretary, treasurer and an executive committee of 
 three. They may employ or discharge such assistants as necessary, 
 taking sufficient bonds to cover all responsibility reposed. Tliey shall 
 enact suitable laws and regulations, subject to approval by the next 
 meeting of stockholders : Provided, All such by-laws and regulations 
 shall have the full force of law until the stockholders shall have 
 refused to concur therein. 
 
 17. Owing to the fact that the election of trustee stockholders can- 
 not concur until next June, it is recommended that the State Alliance 
 elect a board of directors, to serve until their successors are elected 
 and qualified. 
 
 By-Laws. 
 
 1- Tlie office and place or places of business of this corporation shall 
 be fixed by the board of directors. 
 
 2. The board of directors shall have entire control of the business 
 affairs of this corporation. 
 
 3. The officers of the board of directors shall consist of a president, 
 vice-president, secretary, treasurer and an executive committee of 
 three.
 
 300 MODEL HULES AND WORKING BY-LAWS 
 
 4. The president shall preside at all meetings of the board of 
 directors, at the annual meeting of the trustee stockholders, sign all 
 orders for the payment of money, and perform all other duties required 
 by the board of directors. In the absence or disability of the- president, 
 the vice-president shall perform the duties of the president. In the 
 absence of both president and vice-president, the board of directors 
 may elect a president pi-o tern. 
 
 6. The secretary shall keep an accurate record of all the meetings of 
 the board of directors. ...nd the annual meetings of tlie county trustee 
 stoclcholders. He shall keep a set of books, in wliich he shall make a 
 record of all the business transactions and accounts of the corporation. 
 He shall keep a list of stockholders, and the number of sliares held by 
 each; call all meetings ordered by the president of the board of 
 directors; receive all moneys paid into the corporation, receipt there- 
 for, and pay the same over to tlie treasurer and take his receipt there- 
 for. He shall conduct the correspondence relating to the business of 
 the corporation, make all reports required by the board of directors 
 and keep a true copy of the same, and make annual report at tlie close 
 of the business of each year, setting forth clearly the condition of the 
 business of the corporation as represented by the accounts and records 
 in his office, and do and perform such otlier duties as may be required 
 of him by the board of directors. He shall give bond in double the 
 amount of money likely to come into his hands, conditioned upon the 
 faithful discharge of tlie duties of his office. He shall turn over to 
 his successor all books, papers, money and all other property in his 
 possession belonging to the corporation. 
 
 6. The treasurer shall receive all moneys belonging to this corpora- 
 tion, and receipt for the same. He shall pay out money only on the 
 order of the president, countersigned by the secretary, with the seal of 
 the corporation affixed. He shall make a quarterly report to the board 
 of directors of all moneys received and disbursed during the quarter, 
 and at such other times as the board of directors may require. At the 
 annual meeting of the board of directors he shall make a full and 
 complete report of all moneys received and disbursed, setting forth 
 the financial condition of the corporation, for the information of (he 
 stockholders. He shall give a good and sufficient bond in sueli sum as the 
 board of directors may require, conditioned ujKm tlie faitliful discharge 
 of the duties of his office, and turn over to his successor all moneys, 
 books, papers and property in his hands belonging to the corporation. 
 
 7. The board of directors may employ an agent, or agents, who 
 shall conduct the business as directed by the board, and shall be sub- 
 ject to its control, .so far as the moneys and interests of the stock- 
 holders are concerned. But no contract shall be closed by the 
 business agent for goods to supply prospective orders until such con- 
 tract is ratified by the executive committee. He shall give bond in 
 such sum as the board of directors may require, conditioned upon the 
 faithful performance of the duties assigned to him. 
 
 8. The board of directors shall designate some good and reliable 
 bank or banks, at or near the business center of the Exchange, as banks 
 of deposit for its funds, and shall require a bond of said bank or 
 banks for the safe keeping of its funds, if deemed best. And all 
 moneys shall be deposited therein to the credit of the board, and shall 
 not be drawn therefrom except on the order of the president, counter- 
 signed by the secretary, with the seal affixed.
 
 OF THE KANSAS ALLIANCE EXCHANGE. 301 
 
 9. The regular meetings of the board of directors shall be on the first 
 Tuesday of each quarter, commencing October 1, 1889. Special meet- 
 ings of the board of directors may be held at any time, on the call of 
 the president, through the secretary. 
 
 10. The bond of the treasurer shall be $50,000, and the business agent's 
 bond shall be $20,000. These bonds may be increased at the discretion 
 of the board of directors. 
 
 11. The compensation of the officers shall be fixed by the board of 
 directors, and the directors shall not receive to exceed $2 per day and 
 actual traveling expenses, when engaged in the business of the corpo- 
 ration, which claim shall be audited by the executive committee. 
 
 12. The executive committee shall have a general supervision of the 
 work of the Exchange company, through its chairman ; shall confer 
 with the business agent of the Exchange on matters of business coming 
 before him of a difficult character; shall inquire into the responsibility 
 of all bondsmen of the several officers; shall audit all claims, and shall 
 pass upon the correctness of all official reports, and perform such 
 other duties, not provided for in the by-laws, which demand prompt 
 and efficient action. 
 
 13. These by-laws may be altered or amended at any session of the 
 board of directors by a vote of two-thirds of the members present. 
 
 BY-LAWS OF THE GBANGERS' BANK OF CALIFOENIA. 
 
 Article 1. The name of this corporation shall be " GSANGERS' Bank 
 OF California." 
 
 Art. 2. The principal place of business shall be in the city and 
 county of San Francisco, and State of California, 
 
 Art. 3. The bank shall have a capital stock of one million of dollars, 
 divided into ten thousand shares, of a par value of one hundred 
 dollars each. 
 
 Art. 4. None but Patrons of Husbandry or corporations composed 
 exclusively of Patrons of Husbandry, shall be permitted to subscribe 
 to the capital stock of the bank, and such persons or incorporations 
 shall not be permitted to subscribe in excess of five hundred shares. 
 
 Art. 5. Stockholders of this bank shall be such persons or corpora- 
 tions as may have executed or shall hereafter execute a subscription 
 to the capital stock in form such as the board of directors may pre- 
 scribe, and shall pay to the cashier ot the bank all called assessments, 
 or any person to whom said stock has been duly assigned. 
 
 Art. 6. The powers of the corporation shall be vested in a board of 
 eleven directors, who shall be elected by the stockholders at the 
 annual meeting, and shall hold their office for the term of one year, 
 and until their successors are elected and qualified. 
 
 Art. 7. The directors shall be stockholders of the corporation, and 
 Patrons of Husbandry, residents of the State of California, and citizens 
 of tlie United States, and shall hold at least five shares of the capital 
 sto<!k. 
 
 Art. 8. The majority of the whole number of directors shall consti- 
 tute a quorum for the transaction of lousiness, and every decision of a
 
 302 MODEL RULES AKD WOBKING BY-LAWS 
 
 majority of the persons duly assembled as a board (If not In conflict 
 with these by-laws) shall be valid as a corporate act. 
 
 Art. 9. Regular meetings of the board of directors shall be held at 
 the office of the corporation at least once in every two months, and at 
 such other times as the board of directors may direct; and special 
 meetings of the board of directors shall be held at the same place, 
 upon the call of the president; and it shall be the duty of the president, 
 vice-president, or cashier, to call special meetings upon request of five 
 directors, or upon request of stockholders representing one-quarter of 
 the stock issued. Ko notice need be given of the regular meetings, in 
 addition to that furnished by this article ; but of special meetings, the 
 president or cashier shall cause all directors residing outside of 
 San Francisco to be notified by mail or telegraph, mailing the same 
 seven days prior to such meeting, and all directors residing and being 
 in the city and county of San Francisco and any others to whom it is 
 practicable to give such personal notice, to be personally notified. 
 
 Art. 10. Whenever a vacancy shall occur in the office of any director, 
 by death, resignation, or other cause, the board of directors shall 
 appoint a successor for his unexpired term. Provided that if more 
 than one vacancy shall occur in the board in any year, a meeting of 
 the stockholders shall be called by the board of directors within 
 thirty days, giving at least twenty days' notice of such meeting, by 
 advertising the same in some newspaper published daily in the city of 
 San Francisco, for the pui-pose of filling such vacancy or vacancies. 
 
 Art. 11. Whenever a director shall cease to be a stockholder, his 
 office becomes ipso facto, vacant; such vacancy shall be filled as pro- 
 vided in Article 10. 
 
 Art. 12. The board of directors shall elect from their number a 
 president and vice-president of the corporation, who shall hold their 
 office for one year. 
 
 Art. 13. Tlie president or vice-president, or either of them, may be 
 removed from office at any time on the vote of seven directors in favor 
 of such removal. 
 
 Art. 14. The board of directors shall appoint a cashier, an attorney, 
 and such other officers, agents, clerks or servants as the business of the 
 bank shall require, define their powers and prescribe their duties, 
 subject to the by-laws, and shall fix the salaries or compensation to be 
 paid all officers, agents, clerks, or servants of the corporation. 
 
 Art. 15. The president, vice-president and cashier shall have charge 
 and custody of the funds, property, books, papers and other matters 
 of the corporation, under such rules, regulations and restrictions as the 
 board of directors shall prescribe in the by-laws, or by express resolu- 
 tion from time to time made or passed. 
 
 Art. 16. The president, vice-president and cashier shall have the 
 power to buy and sell bills of exchange, to make loans under such 
 regulations and restrictions as may be fixed by resolutions of tlie 
 board of directors, to keep the common seal, and each shall have the 
 power to affix the same to all papers, instruments, or documents, on 
 behalf of the corporation, requiring the seal; they shall each have the 
 power to collect all moneys due the corporation; to make, execute and 
 deliver all receipts, releases, acquittances, or other papers, writings, 
 documents or instruments on behalf of the corporation, proper 
 or necessary in the ordinary course of business of the bank; and
 
 OF THE GEAN^GEES' BANK OF CALIFOENIA. 303 
 
 generally to carry on the business of the corporation, subject to the 
 control of the board of directors, expressed through the by-laws, or 
 such express resolutions as may from time to time be passed; and they 
 shall each report to the board of directors, when required, each and 
 everytliing by them, or either of them, transacted. 
 
 Art. 17. The president and vice-president shall not both be absent 
 from the State at the same time, and in case of the absence of either 
 from the banlc, his duties and powers shall devolve upon and be per- 
 formed by the other; and each to be eligible to such office shall be a 
 stockholder to the amount of Ave shares. 
 
 Art. 18. It shall be the duty of the president, and in his absence ihe 
 vice-president, to preside at all meetings of the board of directors, and 
 at all meetings of the stockholders of the corporation. 
 
 Art. 19. It shall be the duty of the cashier to keep or cause to be 
 kept, such books as the business of the bank may require, under the 
 control and instructions of the board of directors. He shall attend 
 personally to the business of the bank at such hours as the board of 
 directors may determine. He shall also be required to give bonds for 
 the faithful performance of his duties, in an amount to be fixed by the 
 board of directors. 
 
 Art. 20. The board of directors shall appoint from their number a 
 finance committee of three, whose duties shall be defined by resolution 
 of the board of directors. 
 
 Art. 21. The board of directors shall appoint an auditing committee 
 of three from their number, whose duty it shall be to count the cash, 
 and examine the books, vouchers, documents, papers and other assets 
 of tlie bank; to report upon the same to the stockholders at their 
 annual meetings and to the board of directors from time to time, as 
 they may direct. 
 
 Art. 22. The annual meeting of the stockholders for the election of 
 directors shall be held at the office of the bank, on the second Tuesday 
 of January of each year, at one o'clock p. m. 
 
 Art. 23. The call for the annual meeting of stockholders, and for the 
 annual election of directors shall be signed by the president, vice- 
 president or cashier, and published at least once a week for four 
 consecutive weeks next preceding the day of meeting, in at least three 
 newspapers of general circulation throughout the State If from any 
 cause no quorum shall be present, the meeting may adjourn from time 
 to time without further notice. 
 
 Art. 24. Amended Oct. 10, 1876; annual meeting. Struck out entirely 
 January 8, 1884; annual meeting. 
 
 Art. 25. The board of directors shall have the power to regulate from 
 time to time, the rate of interest to be charged ujjon loans and 
 allowed upon deposits. 
 
 Art. 26. All transfers of stock shall be subject to all debts and 
 equities In favor of the corporation against the person or corporations 
 making such transfer, and existing or arising prior to the regular 
 transfer thereof upon the books of the corporation; and no transfer 
 of shares shall be made upon the books of the corporation until all 
 dues and demands then^on, due to the corporation from the party or 
 parties representing such shares, sliall hiive been paid. 
 
 Art. 27. All transfers of stock shall be made on the books of the 
 corporation, and no transfer shall be binding on the corporation until
 
 304 MODEL RULES AND WOBKING BY-LAWS 
 
 so entered, or until all assessments thereon have been paid. No stock 
 that has been transfeiTed on the books of the corporation within thirty 
 days next preceding any meeting of tlie stockliolders, shall be entitled 
 to representation at said meeting. 
 
 Art. 28. Certificates of stock shall be issued to the original stock- 
 holders of this bank to the number of shares by each subscribed in the 
 original articles of association, as evidence to each of the number of 
 shares by him owned in the capital stock, and the manner of trans- 
 ferring shares shall be by endorsement and delivery of the certificate 
 tliereof, such endorsement being by the signature of the proprietor, or 
 his or her attorney, or legal representative. No stock shall be trans- 
 ferred without the sunrender of the certificate, and upon such surren- 
 der the word "cancelled" shall be written across the face of the 
 certificate by the cashier, and the signature of the offtcers shall be 
 erased, and such certificate so cancelled shall be preserved by pastliig 
 the same to the stub from which it was torn in the certificate book. 
 The transfer books shall be closed for two days prior to the annual 
 meeting and the payment of dividends, and the dividends shall be paid 
 to the stockholders in whose name the stock shall stand when the 
 books are closed. 
 
 Art. 29. The officers of the bank are strictly prohibited from loaning 
 its funds on mining stocks. 
 
 Art. 30. The board of directors shall have power to dispose of the 
 stock of the bank at rates not less than the par vahie, and after the 
 first of October, 1874, may fix such premiums on the stock as in their 
 judgment may be deemed just. 
 
 Art. 31. All persons subscribing to the capital stock of the bank are 
 required to sign their names to the by-laws. 
 
 COOPERATIVE FIRE INSURANCE. 
 
 The following is a model charter (or constitution) 
 and by-laws for a cooperative fire insurance company 
 under the laws of Michigan, but may have to be varied 
 in other sections to conform to the State law. 
 
 Constitution. 
 We [here insert names of incorporators], and others, residents of 
 County, State of , have and do hereby associate togetlier 
 
 (as authorized by the laws of the State of Michigan) for the purpose of 
 forming an incorporated company, to be denominated and known as 
 
 the Farmers' Mutual Fire Insurance Company, of County, for tlie 
 
 transaction of mutual insurance upon dwelling houses, barns and all 
 kinds of out-buildings, household furniture, goods, wares and mer- 
 chandise, stock and grain contained in said buildings, or being upon 
 farms as farm property, or detached private risks belonging to its
 
 OF THE COOPEBATIVE FIEE INSUEANCE. 30a 
 
 members away from business centers ; and no other property, real or 
 personal, shall be insured in this company. 
 
 Name. 
 Section 2. This company shall be known and designated as "The 
 
 Farmers' Mutual Fire Insurance Company, of County," and its 
 
 principal office of business shall be in the Village of , in 
 
 County, . 
 
 Officers, Term, Quoritm and Removals. 
 
 Sec. 3. The officers of this company shall be a president, vice-presi- 
 dent, secretary, treasurer, and a board of not less than seven nor more 
 than nine directors who shall hold their respective offices, unless 
 removed by death or for cause, until the election or appointment and 
 qualification of their successors in office ; any three of said directors 
 shall constitute a quorum for the adjustment of losses and may fix and 
 approve bonds of treasurer and secretary ; and any officer of this com- 
 pany may be removed at a special meeting by a vote of two-thirds of 
 the members present. 
 
 Duties of Officers. 
 
 Sec. 4. The president, when present, shall preside at all meetings of 
 the company, sign all policies which may be done in blank, be ex- 
 officlo treasurer of the company, and shall execute a bond in its favor 
 with good and sufficient sureties to be approved by the board and 
 filed with the chairman thereof 
 
 He shall furnish a monthly exhibit to the secretary showing all 
 money received from him from all sources ; also all orders paid, and 
 the balance ; also a summary of the same to the board at their annual 
 meeting, and at such other times as they may require. 
 
 He shall pay all orders drawn by the direction of the board, and 
 signed by the chairman and secretary thereof, and shall receive for 
 services well and faithfully performed, such compensation as the 
 members at their annual meeting shall allow. 
 
 Sec. 5. In the absence of the president the vice-president shall pre- 
 side ; but if both be absent a president pro tempore shall be chosen 
 from the members present ; and by virtue of his office of vice-president 
 he shall be a member of the board of directors and chairman thereof. 
 
 Sec. 6. The secretary of the company shall be ex-officio secretary of 
 the board of directors. 
 
 He shall keep a book or books in which he shall enter in writing a 
 full, true and' perfect record of all doings of the company, and also of 
 flie board of directors, and record the appraisals of losses, and in case 
 of loss, notify the board and appoint place and time of meeting, which 
 sliall be within ten days after notice in writing of said loss shall have 
 Vieeii served upon the secretary and at or near where said property 
 was V>iirned or damaged. 
 
 He shall keep a cash acc<innt for the company, charging In all 
 moneys received for fees, premiums, interest or assessments, and 
 credK ing out all sums paid agents, officers, accounts audited by the 
 board and losses. 
 
 He shall keep an office open diiring business hours and advertise the 
 same, where all his records at all reiisonable hours shall be open to 
 inspection of all members of the company.
 
 306 MODEL RULES AND WORKING BY-LAWS 
 
 He shall provide all necessary blanks, books and office fixtures under 
 the direction of the board, issue all policies, levy and collect all assess- 
 ments, and on the last Saturday of each month pay over to the 
 treasurer all moneys of the couipany, from wliatever sourse received, 
 taking his receipt therefor. 
 
 He shall have the appointment and supervision of the company's 
 agents, who shall report in full to the secretary at least twice a month^ 
 and for whose acts he and his sureties shall be responsible. 
 
 He shall execute a bond in favor of tlie company, which shall be 
 approved by the board in such sum as tlie board shall direct, which 
 bond shall be filed witli the chairman thereof, conditioned for the 
 faithful and proper appropriation of all company money which may 
 come into his hands by virtue of his office of secretary. 
 
 He shall, upon the written request of twenty members, or by order of 
 the board of directors, publish llicir call for a special meeting in at 
 least one leading secular paper in each County, naming object, time 
 and place of such meeting, for two consecutive weeks previously. 
 
 He may in connection with any two members of the board adjudicate 
 all losses not exceeding $200. 
 
 He shall account to and settle with the board at their annual meet- 
 ings, and at such other times as tliey may require. 
 
 He shall make a report at each annual meeting, exhibiting a clear 
 and concise statement of tlie condition of the company, and publish 
 the same in some leading proper in each County the first week of each 
 fiscal year, and make the required report to the Commissioner of 
 Insurance all of wliich reports shall be under oath of the treasurer and 
 secretary. 
 
 He shall receive for services for self and agents such compensation 
 as the members at the annual meeting shall allow ; but all compensa- 
 tion for secretary's services shall be fixed by the members at the 
 annual meeting for the ensuing fiscal year previous to his election. 
 
 Sec. 7. The board of directors shall have the general fiduciary super- 
 vision of the affairs of the company; power to fill all vacancies that 
 may occur in its offices, which shall be for unexpired terms only, and 
 make and adopt all needed by-laws for the government of its officers 
 and members, and the conduct of its affairs, to inquire into and talce 
 necessary evidence under oath; adjudicate all losses sustained on the 
 property of its members herein mentioned; to audit all claims eqult- 
 al)le or legal against the company subject to appeal to arbitrators to 
 order all assessments; to issue all orders on the treasurer which shall 
 be signed by the chaii-man and countersigned by the secretary; and no 
 moneys of this company shall be paid other than by order of its board 
 of directors. 
 
 They shall have power to cancel in whole or in part any policy, 
 whenever in their judgment the safety or interests of the company 
 may so require by paying back to the assured stich a proportion of the 
 company's surplus if any, as his insurance bears to the whole amouiit 
 of insurance of the conipany. 
 
 They shall settle with the secretary and treasurer at least once a 
 year, and in all actions or suits at law in which this company may be a 
 party the chairman of the board of directors under their direction 
 shall act for and represent the intei-esls of this company. 
 
 They shall In their discretion diiecl the treasurer to loan all moneys 
 pf the company, not required for immediate losses or expenses.
 
 OF THE COOPERATIVE FIEE INSUEANCB. 307 
 
 They shall define the conditions on which policies shall be Issued. 
 
 Sec. 8. Fifteen members of this company shall be the mlnimuin 
 number necessary to constitute a quorum at all annual and special 
 meetings of the company. 
 
 AJTNxrAL Meetings. 
 
 Sec. 9. The annual meetings of this company shall be held on the 
 first Thursday after the second Monday of January, and the fiscal year 
 shall begin on that day. 
 
 Tlie annual meetings of directors shall be held on the first Tuesday 
 after the second Monday of January. 
 
 The annual meeting of members shall begin at ten o'clock A. M. in 
 the village of Allegan at such place as the board shall direct, notice of 
 which shall be conspicuously inserted in one leading paper of each 
 County for two consecutive weeks previously. 
 
 The annual meeting of the board shall be in the office of the com- 
 pany, notice of which shall be mailed each director in due season. 
 
 Any meeting of the members or directors may be adjourned from 
 time to time as may be necessary until the business of such meeting is 
 completed. 
 
 Sec. 10. The regular officers of this company shall be elected at the 
 annual meeting by a majority ballot the president, vice-president, 
 secretary and treasurer once in two years, and a board of directors 
 annually. 
 
 Before entering upon the discharge of the duties of their respective 
 offices, eacli of said officers shall signify in writing over his own signa- 
 ture his acceptance of such office, which acceptance shall be filed with 
 the secretary within fifteen days after such election. 
 
 Also the bond of the secretary and treasurer shall be filed within the 
 time aforesaid. 
 
 Vacancies. 
 
 Sec. 11. An office shall be deemed vacant whenever the incumbent 
 thereof shall die, become insane, be removed from office or resign. 
 Membership. 
 
 Sec. 12. Any person may become a member of this company whose 
 risk is in eitlier of the said Counties of Allegan and Ottawa and of such 
 a character as specified in the enumeration of risks Section 1 by sub- 
 scribing his or her name to such application therefor as the company 
 jirovlde and use In making insurance and paying to the secretary one 
 and fifty one-hundredths dollars membership fee and two-tenths of 
 one per cent on tlie amount of his or her insurance. 
 
 Any member may enlarge or diminish his or her insurance by notify- 
 ing tlie secretary of tlie company (and paying an office fee of fifty cents) 
 and in case of enlargement two-tenths of one per cent on such increase. 
 
 All moneys received shall constitute a contingent fund for the neces- 
 sary expenses of the company, and for the liquidation of its losses so 
 far as the same may apply. 
 
 Withdrawal and Suspension. 
 
 Sec. 13. Any member may at any time withdraw from this company 
 by returning his or her policy, and paying all claims if any, against the 
 same; and each member shall pay his or lier assessment respectively 
 to the secretary, or Ills receiver, within thirty days after due notice by 
 mail and In default thereof If payment be not made within thirty days
 
 30S MODEL KULES AND WORKING BY-LAWS 
 
 thereafter, said delinquent's insurance may be suspended by the secre. 
 tary or board ; and if payment is not made within ninety days after 
 due notice by mail, said insiirance shall stand suspended; thereafter 
 every such delinquent shall cease to have any right in or claim against 
 tills company by reason of any policy or agreement of insurance exe- 
 cuted by it, but such delinquent shall continue liable for all demands 
 due from him or her to this company. 
 
 Assessment. 
 
 Sec. 14. Assessment shall be made to pay losses that are greater than 
 the fund on hand. All members assessable are to be equitably assessed 
 as determined by the board from tlie date of insurance and the resourses 
 of the company, and no assessment shall be less than ten cents on each 
 one hundred dollars of insurance, and may provide as surplus 
 additional a sum not exceeding one-tenth of one per cent on the assets 
 of the company. 
 
 The order for assessment must be signed by the chairman of the 
 board and the secretary, and shall be when so made prima facie 
 evidence of the truth, justness and correctness of all the statements 
 therein contained in all suits and actions at law in equity. 
 
 Proportion of actual Loss Paid, Time, Etc. 
 
 Sec. 15. Tills company does not consent to an insurance exceeding 
 three-fourths cash value on the property of its members as set forth in 
 section one of this charter, and will not pay more than three-fourths of 
 the actual cash value on the same, but will pay full insurance up to 
 that amount ; and it shall be optional with tlie board to draw their 
 check at thirty or sixty days or hire the money and pay Immediately 
 when the company's surplus would render an assessment necessary. 
 Assignments. 
 
 Sec. 16. Policies may be assigned to purchasers of the property it 
 covers, provided the assignment of the property is duly reported to the 
 company, and provided the assignee pays one and fifty one-hundredths 
 dollars membership fee, unless already a member, in which case the 
 fifty cents office fee only. 
 
 What Invalidates this Policy. 
 
 Sec. 17. This entire policy, unless otherwise by agreement endorsed 
 hereon or added hereto, shall be void if the insured now has or shall 
 hereafter make or procure any other contract of insurance, wliether 
 void or not, on property covered in whole or in part by this policy; or 
 If the hazard be increased by any means within the control or knowl- 
 edge of the Insured; if mecjianies be employed in building, altering or 
 repairing the within described premises for more than fifteen days at 
 anyone time; or if the interest of the insured be other than uncon- 
 ditional and sole ownership; or if the subject of insurance be a build- 
 ing on ground not owned by the assured in fee simple; or if the object 
 of insurance be personal property and be or become encumbered by a 
 chattel mortgage; or if with the knowledge of the insured foreclosure 
 proceedings be commenced or notice given of the sale of any property 
 covered by this policy by virtue of any mortgage; or if this policy be 
 assigned before a loss; or if a building herein described whether 
 Intended for occupancy by owner or tenant, be or become vacant or 
 unoccupied and so remain for ninety days; or if fire is used in build-
 
 OF COOPEEATIVE FIEE INSURANCE. 309 
 
 tags unprovided with properly constructed chimneys ; or if the ashes 
 are not properly disposed of; or if open lights be used in barns; or if 
 smoking is practiced or allowed in barns. 
 By-Laws. 
 
 1. This company will not be liable for losses occasioned by stove 
 pipes passing through combustible floors, unless protected by sufficient 
 ventihvtor or tliinible, and entering a properly constructed chimney. 
 
 2. This company will not be liable for losses occasioned by placing 
 ashes in any combustible building, or vessel, or by storing taem less 
 tlian thirty feet from building, or by the burning of smoke houses. 
 
 3. An insurance effected by a member holds good to his or her legal 
 representatives for two years from the date of the decease, provided 
 all assessments are promptly paid ; it being permissible, however, dur- 
 hig the time aforesaid to surrender the policy, and have a new one 
 Lssued to the legal representatives, on payment of office fee of fifty 
 cents. 
 
 4. A member may have his or her policy made payable in case of 
 loss, to a mortgagee therein named as his or her interest may appear, 
 and as shown from said members application on file with the secretary. 
 
 5. In the appraisal of loss or damage of live stock, the following 
 rules shall control and limit the action of the board of directors: 1st, 
 on horses the intrinsic valuation for farm purposes shall be the basis 
 of their appraisal ; 2d, on cattle the intrinsic valuation for labor, 
 for the daii-y, and for slanghter shall be the basis of such appraisal; 
 3il. on sheep the intrinsic value for wool and for slaughter shall be 
 the basis for their appraisal except as values are increased by agree- 
 ment with this company. 
 
 6. All policies shall bear date and take effect at twelve o'clock noon 
 on the day the application shall be made to the secretary or his agent, If 
 the same shall be accepted by the secretary, unless the applicant 
 shall desire a subsequent day ; then on sucli day at twelve o'clock noon- 
 
 7. The application for insurance shall be signed by the applicant or 
 his legal representative which shall be construed as a part of the 
 contract of insurance, and shall be regarded as the warranty of the 
 truth of all facts stated tliereln, and shall be filed in the office of the 
 secretary. 
 
 8. When any member shall sustain a loss, he, his attorney or agent 
 shall, within ten days thereafter, deliver to the secretary a particular 
 statement in writing thereof; and at any meeting of the board for 
 a<)justment of the same the directors shall. In their discretion, exam, 
 ine or cause to be examined critically, all available evidence bearing 
 npon the loss in question and to require of the member who has sus- 
 tained such loss an estimate of the present cash value of property lost, 
 a statement of how and by whom occupied at the time, Iiow the fire 
 originated to the best of his knowledge and belief, and th.at the loss 
 occurred without fraud or evil practice on his part; also what Interest 
 he had In the property at the time; whether any other Insurance 
 existed thereon, and If so what amount. Any other matter of Inquiry 
 may be elicited and the whole under oath, if deemed necessary by the 
 committee of adjustment; and If there be any fraud or false swearing, 
 with fraudulent Intent, the claimant shall forfeit all claims by virtue 
 of any policy of this company for his Joss.
 
 810 MODEL EULES AND WORKING BT-LAWS 
 
 9. Upon the board of directors making an assessment upon Its mem- 
 bers, the secretai-y shall as soon thereafter as said board shall direct 
 mail notices to each member of their respectfve assessments. Ninety 
 (lays after such notices have been mailed by the secretary he shall 
 mail a second notice to all such members as have not at that date paid 
 tlieir assessment, adding thereto a penalty of ten per cent; thirty days 
 after said second notices have been mailed the secretary shall make a 
 list of all such members tlien delinquent and who have not paid their 
 assessment, and shall take Immediate steps for the collection thereof. 
 
 10. Whenever additional insurance is obtained by a member, his 
 application therefor shall fully set forth any and all material changes 
 which increase the hazard since the date of the original policy; includ- 
 ing any transferor incumbrances of said property, any and all changes 
 in the relation of the parties, which would alter the right of the par- 
 ties with regard to the original contract of insurance, and any failure 
 or neglect on the part of any member to clearly make known any such 
 increased hazard the secretary or his agent shall void the policy. 
 
 11. In case .of a partial loss on a joint insurance this company will 
 only pay such a proportion of the whole loss sustained as its insurance 
 bears to the whole amount insured. 
 
 12. Any insurance effected by this company on live stock and imple- 
 ments, shall be limited to the premises described in the application 
 and policy, with this exception: that any member being away from 
 his said premises, or in an adjoining County with any of said property 
 the insurance shall extend to and cover the same during such tempo- 
 rary absence, provided that this company will pay no loss from the 
 injury or destruction of any of such property (except in cases of light- 
 ning), if damages or loss occurs to the same in any building which by 
 the charter and by-laws is not insurable in this company if located in 
 Allegan or Ottawa County. 
 
 13. All insurance shall stand suspended when engines are used for 
 threshing that are known to be defective, or the engineer known to be 
 proverbially careless, or when wind blows directly or obliquely from 
 engine to barn or stack, or when less than twenty feet intervenes 
 between engine or building or stack, or when all due care and caution 
 is not observed by the member and policy-holder; provided, liowever> 
 that if a member shall be able to show to the satisfaction of the com- 
 pany that a loss did not occur through his failure to observe any of tlie 
 precautions above mentioned, or his using all due care and cautioTi, 
 then such failure shall not cause a forfeiture of his insurance; but in 
 no other case will the company be liable for a loss when such precau- 
 tions and care are not observed and taken. 
 
 14. Gasoline or kerosene may be used for cooking purposes on con- 
 dition that said gasoline shall not be stored on the premises in larger 
 quantities than five gallons, and shall not be stored in any building 
 where flre or lights are used; nor shall stoves or lights be refilled or 
 replenished while burning. 
 
 15. Detached private risks belonging to members referred to in the 
 charter shall be situated at least one hundred feet from any exposure. 
 
 16. All losses not exceeding 5,000 maybe paid by a loan of fiinrls 
 upon the credit of the company, unless in the judgnient of the board 
 of directors, or bv authority of this company, an assessment sliall be 
 made. And the directors are hereby authorized to make sucli loan or 
 any portion thereof, from time to time, as in their judgment may be 
 deemed necessary, the same to be refunded by an assessment when 
 the losses shall exceed that amount (or as their judgment may dictate, 
 as above specified).
 
 DIRECTORY OF COOPERATIVE ENTERPRISES. 
 
 If more information is wanted about the details of 
 any form of cooperative effort described in this book, a, 
 letter of inquiry (with stamps for return postage), speci- 
 fying the precise points wanted, if addressed to any of 
 the following list of enterprises of the class about which 
 more details are wanted, will probably bring the desired 
 reply. 
 
 Other Cooperative Stores, Mills, Etc. 
 
 [See also Pages 36-158.] 
 
 Worcester, Massachusetts, was long the headquarters of the Sover- 
 eigns of Industry, and the principles of cooperation taught by that 
 order took deep root in this city. Several cooperative stores still 
 thrive tliere. 
 
 The Sovereigrn's Co-operative Store, 9 Pleasant street; J. P. Cheney, 
 agent; Incorporated April 20, 1875, with $650 capital, which now 
 amounts to about $3,300. Its statement Jan. 1, 1891, showed merchan- 
 dise to the amount of $2,305, real estate $1,806, cash and other assets 
 $2,841, a total for assets of $6,952. The liabilities were, shares of 
 stock $2,965, mortgage on real estate $1,200, redemption fund $816, divi- 
 dends and Interest unpaid $433, bills for merchandise and all other lia- 
 bilities $1,231, a total of $6,647. Five per cent per annum was paid on 
 capital, ten per cent of the net profits credited to the redemption fund, 
 two and one-half per cent of the profits added to the contingent fund, 
 the balance going to dividend on purchasers, which lias varied from 
 four to seven percent. "We redeem shares at the option of holders, 
 and have almost always been able to do this without difflctilty. My 
 fifteen years' experience convinces me that faithful, careful and lion- 
 est management, together with loyally on the part of tlie members, 
 will secure success to a greater or less degree. Failure of cooperative 
 associations can be traced to lack of dne or all of these perquisites." 
 
 311
 
 312 
 
 HOW TO COOPEEATE. 
 
 Protective Union, Division No. 42, Instituted Dec. 18, 1847, is one of 
 the very few of tlie old Union stores tliat still exists. It publishes no 
 statement, but the by-laws limit membership to one hundred persons 
 " of good moral character, who do not use or vend intoxicating drinks 
 as a beverage," admitted by a two-thirds vote of all the members upon 
 payment of an admission fee equal to one share of the divisions' net 
 assets. Shares are not transferable, but seventy-five per cent is paid 
 back on withdrawal. No credit is allowed, and the net profits, above 
 reserves, are " divided equally among the members annually "equiv- 
 alent to dividend on capital only, since each member holds an equal 
 interest. 
 
 The Swedlsb Mercantile Co-operative Association, 9 Prospect 
 street, Arvid Johnson, Manager, incorporated October, 1884, with au- 
 thorized capital of $5,000, no one holding over twenty shares. The 
 original sixty-four members have increased to two hundred, but many 
 shares have been redeemed for members who left the city. The com- 
 pany has the first right to purchase shares " at a price fixed by a share- 
 holders' meeting," but one cannot withdraw until at least six months 
 a member, thirty days' notice of withdrawal being required. Ten per 
 cent of the net profits are by law required to be set aside for the sink- 
 ing fund, but most of the balance has been paid in interest on capital 
 only (although shareholders had but one vote), thus violating the first 
 principle of cooperation, which would divide profits in dividends on 
 cash purchases. Had this been done, the rebate would have been four 
 to six per cent. Goods were sold at tlie same prices to all, and the 
 society had a manager who possessed tlie confidence of the Swedes 
 and Germans, who principally comprised the membership. Annual 
 meetings of shareholders and monthly of directors are held, with an 
 annual taking of stock and auditing. The association's success appears 
 from these comparisons : 
 
 First year, 1885 
 
 Second year, 1886. 
 Third year, 1887... 
 Fourth year, 1888. 
 Fifth year, 1889 . . . 
 Sixth year, 1890... 
 
 Capital. 
 
 $1,400 
 1,935 
 3,955 
 6,445 
 8,000 
 
 10,000 
 
 Sales. 
 
 $15,000 
 19,356 
 20,100 
 38,363 
 43,701 
 47,189 
 
 Expenses 
 
 $3,210 
 4,115 
 5,186 
 5,690 
 6,445 
 
 Profits. I Divided. 
 
 $263 
 800 
 1,040 
 1,551 
 1,840 
 
 The First Swedlsb Co-operative Store Company of Worcester is 
 very successful. Expenses are kept down, and the two hundred mem- 
 bers give the store a steady trade for cash. On a capital stock of $3,000 
 and a sinking fund of $1,800, the sales of 1890 were $49,029. The gross 
 profits were $3,525, of which five per cent, or $166 was set aside for the 
 sinking fund and $300 for ten per cent interest on capital, leaving 
 $2,853 as net profits to be paid in dividend on purchases. For the four 
 years the store has been running members have been returned eight 
 per cent on purchases, and non-members three per cent. Prices are 
 kept on a level with prices in other stores. 
 
 The Lisbon Falls (Me.) Co-operative Association, for the six months 
 ended Feb. 6, '91, showed sales to members of $15,549, and to non-mem- 
 bers $4,428, a total of $19,977. Tlie profits were $1,419, of which $175 was 
 added to the permanent fund (making it $1,225), and $1,244 was used to 
 pay an eight per cent dividend on members' purchases. The receipts
 
 OTHEB COOPERATIVE STOEES. 
 
 313 
 
 during the six montlis were $20,213, of wliicli $755 was for new shares, 
 the balance being sales, cash and rents. The expenditures, (including 
 cash on hand) foot up a like sum, mostly for mercliandise, though $410 
 were shares brought in. Tlie expenses were only $1,235, exclusive of 
 $131.50 interest on taxes, or only a fraction over six per cent on the 
 business done, indicating very careful and economical management; 
 this is f urllier proven by the fret that expenses in the six years have 
 been within an average of one per cent. Tlie liabilities foot up $13,395, of 
 which $9,210 is capital, $263 interest on same, $1,453 bills payable, $1,050 
 permanent fund and $1,419 profit. The assets embrace stock in store 
 $5,651, real estate (a few two-story buildings, the rents from which make 
 the store's rent almost nothing, $6,900, fixtures $715, cash owing asso- 
 ciation $725 ( only three and one-fourth per cent on sales, showing liow 
 well cash payment is enforced) unexpended insurance and taxes $110, 
 cash $294. Tlie members have increased from twenty-nine, with $750 
 capital, to one hundred and seventy-five with $9,210 capital ; the aver- 
 age dividend on purchases has been nine per cent (a total of $12,139), 
 besides three per cent semi-annually on capital (total $2,576), making 
 total returns to members of $14,715, or thirty-two per cent per annum on 
 the average capital employed, exclusive of the reserve fund. The 
 details of this progress appear thus : 
 
 
 Capital. 
 Stock. 
 
 Net 
 Sales. 
 
 Interest. 
 % Amt. 
 3 $29.48 
 3 48.23 
 3 132.66 
 3 199.24 
 3 275.11 
 3 297.80 
 3 292.07 
 3 267.56 
 3 252.47 
 3 271.09 
 3 246.41 
 3 263.35 
 
 Dividends. 
 % Amt. 
 
 First six months 
 
 Second six months 
 
 Third six months 
 
 Fourth six months 
 
 Fifth six months 
 
 Sixth six months 
 
 Seventh six months... 
 
 Eighth six months 
 
 Ninth six months 
 
 Tenth six months 
 
 Eleventh six months .. 
 Twelfth to Feb. 6, '91.. 
 
 $1,115 
 1,725 
 6,425 
 8,685 
 9,650 
 
 10,155 
 9,405 
 9,095 
 9,024 
 9,340 
 8,856 
 9,210 
 
 $3,505 
 7,100 
 10,563 
 14,802 
 17,548 
 17,692 
 18,808 
 18,538 
 18,285 
 20,333 
 17,624 
 19,977 
 
 10 $317 
 12 666 
 15 1,275 
 9 1,103 
 10 1,623 
 5 748 
 5 799 
 8 1,249 
 
 7 1,042 
 
 8 1,246 
 7 928 
 7 1,244 
 
 Total (six years) 
 
 $7,724 
 
 t$184,675 
 
 3 t$2,675.47 
 
 9 tl2,139 
 
 Average. tTotal. 
 Fenton Haigh, the president, frankly admits the early mistake of 
 paying out all the earnings in dividends, but thinks it is rectified by 
 adding $175 semi-annually to the permanent fund. " This fund is most 
 essential, keeping the members together, as tliey can't withdraw it, 
 and should be Insisted upon at the start." Competent officers that the 
 members can rely upon are also employed, with few changes in man- 
 agement. Non-members get no dividend, in order to encourage all to 
 join, but if a family is too poor to join the dividend on tlieir purchases 
 is placed to their credit until it amounts to one share. "In this way 
 many a poor family has got a few dollars ahead." Goods are sold at 
 current retail prices ; one merchant tried to run out the " coiip," but 
 failed, and the "coops" bought his stock at assignees' sales; the store 
 has also bought out two other merchants. Tlie place Is a small one, 
 with one woolen mill and a saw mill, the employes of which (German, 
 English, Irish, Scotch, French and Hungarians), with some of the farm- 
 ers, make up the membership. Stock-faking Is done of an evening, 
 wltb the help of several members. Running accounts are kept with
 
 314 HOW TO COOPERATE. 
 
 the farmers who bring in produce, and the day boolc and ledger is done 
 away witli except for the farmers' trade. Tliere are two pass-boolcs 
 for each member, with the same number in eacli and a pigeonliole in 
 the store of the corresponding number. Here one of the books is kept, 
 the entry of sales being made on each, and the member keeps the other 
 
 The L,inn County, Kansas, Patrons Co-operatlTe Association, ac- 
 cording to Edward Blair, the manager, is verj' successful, the more so 
 since it is located at Codmus, a hamlet composed of the store, two 
 blacksmith's shops and a church six miles from the railroad. Mr. 
 iilair writes : " We began business in 1875, with about $50 capital. The 
 stock has been increased until we have over $7,000 invested in goods 
 and $2,500 in buildings. This business was begun npon a cash plan, 
 but gradually drifted into the credit system. In 1886 we became con- 
 vinced that the credit system would ruin us, and slmt down to spot 
 cash or no trade. It caused kicking, but we knew it was our only sal- 
 vation. The year before we had sold about $10,000 worth of goods. In 
 1886 we sold $11,000, increasing sales about $1,000 each year until this 
 year, in which our sales reach $17,000, all cash. We pay cash, and get 
 the benefit of cash discounts. Our clerks are willing to work for less 
 wages, as they are not obliged to "thrash" half the customers for 
 kicking at being dunned. 
 
 " Our building has been increased in size until we have 3,840 feet of 
 floor room. The capital stock is divided into shares of five dollars 
 each. Only Patrons of Husbandry are eligible to membership. Inter- 
 est at the rate of six per cent is paid upon the capital stock, which 
 amount is first taken out of the profits of the year's business. About 
 one-half the remainder is applied to a reserve fund ; balance divided 
 among members in proportion to their trade. We have a reserve fund 
 of about $3,000. Cooperative stores usually fail if credit is given or a 
 sinking fund is not provided." 
 
 The New Bedford (Mass.) Central Union is not cooperative but a 
 partnership, like a similar store at Worcester, Mass. It was organized 
 June 14, 1848, as the Workingmen's Protective Association, afterwards 
 changed to the New England Protective Association, No. 55, and in 1861 
 adopted the present name. The membership is three hundred and 
 fifty-two, but no new members have been^aken in for fifteen years, 
 during which earnings have been divided annually, amounting to 
 from $5 to $13 per year per member. The original members paid $10 
 for their certificates, but since the association stopped taking mem- 
 bers the shares have sold for $100 to $160, although the withdrawal 
 value or what might be called the par value is only $30 a share. Mem- 
 bers buy at a price about five per cent less than is charged outsiders, 
 each member having but one share. Tlie business is very successful, 
 the sales for the year ended March 1, 1891, being $106,919, expenses 
 (not including freight) $9,938, leaving profits for tlie year of $2,810, as 
 reported by Benjamin F. Brownell, treasurer. Cash payments are 
 insisted upon, but the constitution embraces the following important 
 proviso: 
 
 "It shall be the settled policy of this association not to accumulate 
 and hold in reserve any funds over the actual wants of the store for 
 business purposes, and such accumulations as may be made from year 
 to year beyond such actual wants, tlie directors shall distribute among 
 the members in dividends pro rata, at or near the time of each annual 
 meeting, or at shorter intervals if it shall seem to them expedient."
 
 OTHEE COOPERATIVE STORES. 315 
 
 Clarke County, Washington, has three cooperative stores, all under 
 gi'ange auspices, there being thirteen subordinate granges in the 
 county. The first was started in April, 1890, at Vancouver, capital $900, 
 shares f 5, held in small lots, the profits being divided among the cus- 
 tomers by an issue of shares, the money to remain in the business. 
 The next was at La Camas, $1,600 capital, mostly held by two or three 
 men, profits being divided among them by an issue of stock to increase 
 the capital. The one at Washougal started last, dividing net profits 
 between customers and stockholders. They are all prosperous, having 
 live, energetic, honest managers, and meet the approval of the com- 
 munity. " It was predicted that the La Camas cooperation would fail 
 in a short time. But one of the prophets failed six months later, and 
 the coops were strong enough to buy the bankrupt stock for $6000." 
 
 The Davison (Mich.) Co-operative Association was incorporated in 
 January, 1890; capital $5,000, shares $10, held by one hundred Patrons 
 of Industry in blocks of ten to fifty shares ; general merchandise and 
 agricultural implements. Cash dealings, first year at fifteen per cent 
 above cost, now twelve and one-half per cent. In eleven and one-half 
 months, to January, '91, earned twenty-three cents on the dollar, paid 
 ten per cent on capital, leaving three per cent in the business. " Tlie 
 business men's association tried to get wholesalers to boycott us at the 
 start, but we found that money would buy goods, and they are all 
 anxious to sell to us now." 
 
 At Kingston, Plymouth County, Mass., cooperation was inaugu- 
 rated In the village of Silver Lake, under the auspices of the Sover- 
 eigns of Industry, June 14, 1875, and was incorporated May 21, 1877, 
 under tlie name of the Cooperative Store Company. It was organized 
 at the start on the Rochdale plan, and has been so conducted ever 
 since. Beginning with $460 capital, this increased to $1,170 two years 
 later, and at the end of 1890 the capital was $1,805, with twenty-six 
 m<!mbers. The sales from 1877 to 1890 inclusive amounted to $144,118^ 
 the average exi)enses being about $920 a year, and the profits $400 to 
 $500. After providing for depreciation and contingent fund, the profits 
 were first divided in dividends on trade, amounting to from five to 
 seven per cent, besides which six per cent interest was paid on capital. 
 The reserve fund accumulated amounts to $1,087, or more than half 
 the capital stock. An abundance of competition has been met by fur- 
 nishing pure goods at fair market prices and keeping down expenses. 
 Prices have been the same to all, patrons keeping their accounts by 
 trade checks, and dividends being paid on checks returned. "When it 
 is remembered that Silver Lake is a small village, it will be seen that 
 cooperation is as well adapted to small as to large places. Henry B. 
 Maglathlan, president and manager, writes: "We have always made 
 a mistake wlien we have attempted to deviate from the Roclidale plan 
 of spot cash transactions. A strong point of our success has been in 
 securing a location on the platform of a railroad station, so as to avoid 
 expenses of handling our goods, while at the same time being where 
 the public can trade wltliout coming for that pnrpKJse alone." Tiie 
 above statements were made under date of March 12, 1891. A copy of 
 the semi-annual report for the six months ended April 1, 1890, was also 
 forwarded, which we print in full as giving a further Insight Into the 
 management of a small enterprise but a large success:
 
 316 HOW TO COOPEBATE. 
 
 The " hive of bees," a symbol of industry, economy and equity, has 
 been aptly chosen as the emblem of cooperation on the Rochdale plan. 
 Upon uas plan our store has continued to prosper, because its methods 
 were nore simple, just and economical than ordinary business. Not- 
 wiihstanding the low prices of certain staple articles, with no team 
 delivery or lilce device to influence trade, the sales of the store for the 
 six months ending March 31, 1890, have amounted to $5,154.19. Com- 
 pared with the corresponding six montlis of last year, this is a gain of 
 1872.65. The trade for the last year exceeds that of two years ago by 
 $1,379.42. The incidental expenses for the six months have been: 
 Salesman's wages, $216; freights, $49.94; expresses, $28.65; agency ex- 
 penses, $31.25; postage, $7.40 printing, $5; wrappers and twine, $12.50; 
 ice, $4.20; coal, $13; miscellaneous, 90 cents; or in all, $368.84. Add for 
 rent, $72, and for State tax, $26.50, and the total is $467.34. The net 
 profits have been distributed: To interest on the capital stock, at the 
 rate of six per cent per annum, $64; to dividend on trade checks, at 
 five per cent, $46.32, and to contingent fund, $60. Let us remember, by 
 saving from spendings, little by little, we can accumulate money, get 
 capital, and so save witliout depriving ourselves of a single article we 
 have tlie means of purchasing- This is the moral, social and salutary, 
 of cooperation. The balance sheet shows for assets: Merchandise, 
 $1,455; fixtures, $45; cash, 1,406; total assets, $2,906. Liabilities capi- 
 tal stock, $1,800; contingent fund, $640; educational fund, $105; un- 
 called for dividends, $100; allowance for depreciation, $101; balance 
 of profits, $160; total liabilities, $2,906. 
 
 What, a Maine Grange has Done. "Our grange at South Paris 
 bought phosphate, sugar, grass seed and other supplies together, be- 
 ginning in a small way until we would have at times $1,500 invested in 
 goods. We got only what was sure to sell, never kept dry-goods and but 
 a very small stock of boots and shoes. At first we kept open only half 
 a day in the week, but afterwards two afternoons. Goods were sold at 
 a slight advance on cost, as we did not care to make money but save 
 it, and by so doing could hold our members and be a strong regulator 
 on prices in the village. We have never been incorporated but have 
 controlled the trade in the grange, taking account of stock, and the 
 manager being under bonds." 
 
 Thus writes O. G. Curtis, the agent, who emphasizes the necessity of 
 an honest business manager. He adds that in this simple form of 
 cooperation he would not advise selling to non-members at the same 
 price, nor try to keep prices secret, as the latter cannot be done. " The 
 success in this farming town has been in keeping open store only a 
 short time in the week, doing lots of business when it was open, and 
 thus keeping down expenses and avoiding credits. Its management 
 speaks for itself in that the loss by bad bills has been only $2.70 in a 
 business of $40,000." What might have been done if the enterprise had 
 been run on true cooperative lines, profits saved and the affair con- 
 ducted on strict business principles ! 
 
 A Similar Flan has been adopted by the CoSperative Trade Associa- 
 tion of Norway, Me., which buys its goods in bulk through the grange 
 agent, C. E. Knight, 209 Commercial street, Portland, Me., dividing the 
 same as soon as delivered and paying for the goods within thirty days. 
 " We only trust those who have good backers. We have practiced this 
 system for twenty years and make quite a saving. We make no profit, 
 simply pay a man for looking after the buying, and the Patrons get the 
 rest." This is one of the simplest forms, which is better than nothing, 
 but which might well be extended according to the sound lines out- 
 lined in the first four chapters in tliis book.
 
 OTHER COOPERATIVE STORES. 81? 
 
 ^lood Work in a Small Way. The same plan was adopted at the 
 start by the Baskahegan Grange (Me.), then money was borrowed to 
 build a hall, dining room and store, and lay in a small stock of goods. 
 The profits of trade and the income from entertainments, grange dues, 
 etc., in time paid for the store, at wliich full retail prices were charged. 
 Mismanagement followed, Patrons got discouraged and offered to close 
 out at fifty cents on the dollar. Finally new management was put in, 
 farmers rallied, trade revived, profits increased, loans were paid up, 
 and the profits exceeded the expenses so that at the settlement made 
 May 1, 1890, the store had a balance of $2,359. Of this amount $432 
 was put into a cheese factory and the balance was invested in stock 
 and trade, the association owing no man a dollar, besides owning its 
 building, furniture, organ, scales, etc. In the year ended May 1, 1891, 
 tlie cash sales were $6,600, besides considerable charged. "This is our 
 weakest point." The society now has one hundred and twenty mem- 
 bers, but sells alike to all and makes prices as low as possible instead 
 of declaring dividends. The profits from non-members' trade about 
 pay operating expenses, while the profits of members' trade is invested 
 in the store. Thus non-members pay the profits out of their pockets 
 and members pay the profits into their pockets. The agent, Albion 
 (iates, is a practical farmer who runs a farm of one hundred and sixty 
 acres. He says, " This store stands a fortress between producers and 
 non-producers and prevents extortion by other merchants. Yet many 
 do not appreciate its value, fall to trade here and thus help those who 
 are not trying to help them." 
 
 The Bingrham County (Idaho) Farmers' Union, was incorporated 
 1891, "to carry on exchange markets for farm produce, general mer- 
 chandise, stock raising, building, manufacturing and banking." The 
 secretary, J. McLachlan (Box 116, Idaho Falls, Ida.), is an old hand in 
 cooperative distribution, having been librarian for years of the Man. 
 Chester Equitable society at Manchester, England (which society is one 
 of the oldest and most successftil in Great Britain, having 12,000 
 members). 
 
 The Foxcroft (Me.) Co-operative Trading: Company, H. G. Pratt, 
 agent, was started in the 'TO's by members of the grange; incorporated 
 in 1881, with $1,525 capital in five large .shares, lield by fifty or sixty 
 members. The sales average $14,000 per year, expenses $1,200, and 
 profits $700, which are divided In dividends on ca.sh trade. The com- 
 petition of regular stores has been met by offering good goods at fair 
 prices. A large outside trade has greatly helped, while long credits 
 have been the greatest mistake. 
 
 The Lewlston (Maine) Co-operative Society No. 1, Incorporated 
 1887, as an outgrowth of the previous work of the Sovereigns of Indus- 
 try (started In 1878), lives up to the Rochdale system of quarterly 
 meetings, stock-takings and division of profits in dividends on pur- 
 chases (above resjTve fund and six per cent per annum on capital). 
 The report for the (juarter ended Dec. 20, 1890, congratulates the mem- 
 bers, as "the profits of our business have been very good, and the 
 amount of trmle larger than ever before, and tlie goo<is in stock are 
 fresh, clean and in sulal>le condition." Tlie financial statement war- 
 rants a dividend of ciglit per cent on purchases. The a-ssets of $11,741 
 Include land and buildings $7,575, fixed stock $655, members' indebt-
 
 318 HOW TO COOPERATE. 
 
 edness $1,292, cash on hand $432, groceries $1,131, meats $72, boots 
 and shoes $535, due for rents $49. The total liabilities, $9,550, include 
 bills payable $1,398, share capital $5,954, borrowed money $2,000, 
 taxes and insurance $112, interest due $86. The difference makes a 
 net surplus of $2,191, or an increase of $545 as the quarter's surplus. 
 The members' trade for the quarter amounted to $6,279, non members' 
 $744, total $7,023, of which the grocery sales were $4,968, meat sales 
 $1,621, and boot and shoe sales $435. Six members withdrew and 
 eight were added, making the total nimiber one hundred and eight, 
 against only eight when the store was started. The expenses of the 
 quarter were $645 for wages $361, officials' salaries $21, auditing $5, 
 stock-taking $3, interest on capital $116, repairs $13, freights $39, hay 
 and grain $45, telephone rent $10, printing $5, water rent $8, ice $9, 
 rent of bam $10. The expenses were thus only nine per cent on the 
 business done. The first nine years the store was open only evenings, 
 and the sales have increased from $1,500 to $30,000 per year. The 
 introductory to the by-laws says : 
 
 "The principal object of this society is to place within the power of 
 the working classes the means to control their own labor, thereby 
 removing the cause of that antagonism between capital and labor 
 which so often proves injurious to our industrial interest. As a basis 
 or foundation for the future operations of this industrial society, we 
 have opened a grocery store. . . . We wish it distinctly understood 
 by traders and business men that it is not our intention to run down 
 prices by excessive competition, as that would be a violation of one of 
 the essential principles of the coiiperative system, because, if exces- 
 sive competition, by depreciating the price of labor products, is right 
 in theoi-js on the same principle it would be perfectly right to depre- 
 ciate labor's wages. 
 
 " We take our stand in the market with the intention of doing busi- 
 ness in competition with others, on fair and honorable terms, and shall 
 sell at the current rate: but if any dealers undertake to run us in 
 prices, they must not find fault if unpleasant consequences should re- 
 sult from their coming in competition with a powerful combination of 
 workingmen." 
 
 Joseph Crosly, the secretary, writes : " Thirty days' credit is given 
 only to the amount of four-fifths of the share capital held, and not even 
 as much credit as this is allowed to members who are large holders of 
 stock. We may have made many mistakes, but on the whole are well 
 satisfied. Our strong point has been no bad debts, no shop-worn goods, 
 freshness and cleanliness about the premises. We have had much 
 competition and met it by selling goods of the best quality for small 
 profits, turning over many times each year our working capital." 
 
 The Tvebanon (Ct.) Grange organized the Grange Hall Company 
 about 1886, and erected a large building with a fine hall above and a 
 store below. Goods were sold to all at the same price, but the credit 
 system was allowed, difficulty was found in getting a man who would 
 carry on the trade on business principles, goods were sold cheaper than 
 they could be afforded (for the sake of trade), and many members 
 cared nothing for it except to make money out of it. The sales the 
 first year amounted to $12,000, and $15,000 the second year, at the end 
 of which the store was sold out. The grange is now thrifty, with 
 money in its treasury, and purchases flour, grain, feed and fertilizers 
 in car-load lots, making quite a saving. 
 
 The Farmers' Union Store, of San Jose, California, was organized 
 by the Patrons of Husbandry in 1873, capital (150,000, shares $100
 
 OTHER COOPERATIVE STORES. 319 
 
 each, all owned by the managers. On a lot 240 by 250 feet a fine store 
 was put up and stocked with everything wanted on the farm and in 
 the home except dry and fancy goods. Cash payments, and the same 
 price to all, but at lower prices than others sold for, enabled the store 
 to do a large business, paying eight per cent dividends on capital eacli 
 January and four per cent more each July, or twelve per cent annually, 
 besides accumulating a reserve of $18,400 and surplus of $25,000. It 
 is therefore a joint-stock company rather than a cooperative society, 
 after the style of the Civil Service stores of London. One large store 
 150 by 60 feet is used for groceries, hardware, stoves and tin ware and 
 crockery. Another room 160 by 50 feet is full of wagons, carriages, har- 
 ness, farm implements and machinery. Still another room 24 by 30 
 feet is the paint and oil department. Then the mill and feed room is 
 about 60 by 30 feet ; two mills run by an engine grind feed for the 
 farms. A big cellar is stored full of various heavy products, and the 
 upper stories are used for storage. A large stable and yard in the rear 
 furnish ample accommodation for the country horses as they daily 
 come to town. "All in all, it is a wonderful success, but the secret of 
 it has been that the farmers put up their money to start with. Cash 
 has been the basis of it all. There has been good business manage- 
 ment, and above all the Patrons have stuck by one another. They 
 would not be led off by other dealers who for a time offered goods at 
 lower prices." The sales the first year were about $200,000, one-half 
 spot casli, the balance credit in thirty days. The sales have gradually 
 increased until now they are between $400,000 and $500,000 annually. 
 The ca.sh sales exceed the credit sales by from $50,000 to $60,000. 
 The real estate of the corporation is valued at $175,000, clear of all 
 incumbrances. The number of employes is thirty and the number of 
 stockholders one hundred and fifteen. Twelve horses are used in city 
 delivery. W. C. Andrews, the efficient manager, writes : 
 
 "Our business is conducted by business men on business principles. 
 Goods are bought and sold on the market. We buy for cash in the oest 
 markets, and allow no one to undersell us, quality considered. We 
 keep nothing but the best goods and avoid all job lots of trash. The 
 Institution has a good name for square dealing. Tlie principal reason 
 for our success where so many others have failed is tliat we were more 
 conservative and, moreover, had tlie capital. We had the cash in hand 
 with wlilch to carry on the business and did not overreadi as many do. 
 I advise every cooperative association to have its money in hand 
 before commencing and avoid long credits." 
 
 The Farmers' Milling: and Elevator Company, of Monte Vista, Rio 
 Grande County, was incorporated In 1890, with $45,000 capital, in 
 1,800 shares of $25, of which 177 farmers subscribed for 1,280 shares. 
 Only 80 of these shares were paid for, amounting to $2,000. The other 
 1,200 shares, amounting to $30,000, were paid for wltli tliree annual 
 notes of each subscriber, payable Jan. 1, 1891, '92, and '93, witli ten 
 per cent interest. The company gave $30,000 for the property, of 
 which $7,000 was a first mortgage, the other $23,000 being paid by 
 three notes of the corporation due March 1, 1891, '92 and '93. Money 
 was borrowed heavily to make improvements and to pay for wheat, as 
 farmers would not wait until the sales of flour furnished the money to 
 pay for their wheat. The high price of wheat this spring is helping 
 the mill out of its troubles, but if it weathers its trials it will be 
 fortunate.
 
 320 HOW TO COOPERATE. 
 
 A private mill, bought on credit, improved with borrowed money, 
 and that paid for its wheat with more borrowed money, could survive 
 only by the best management and fortunate turn of the market. No 
 cooperative society can hope or expect to succeed by thus violating 
 every principle of true cooperation. A correspondent at Monte Vista 
 wisely adds : 
 
 " I protest against the unfairness of compelling stockholders who are 
 able and willing to hold their grain on their own account of assuming 
 the responsibility and paying interest on large sums of borrowed 
 money wholly to assist those stockholders whose needs may require 
 cash in hand. To most farmers to realize at once on their grain and 
 still hold for reasonable price in the future, if they so desire, a ware- 
 house under reliable management in which to deposit the grain and 
 with the wareliouse receipt obtain such cash advances as may meet 
 necessities seems to be a sensible way of meeting demands of those 
 who cannot wait for slow sales of products." 
 
 The F. M. B. A. Mercantile Company, of Brazil, Ind., W. T. Shanks, 
 manager, was incoi-porated as a stock company with cooperative in- 
 stincts, March 31, 1891, began business May 1 with $25,000 capital in 
 $5 shares, $2,500 paid in. Shares are not transferable, but the invest- 
 ment of each accumulates for his benefit, though no one can hold over 
 ten shares or haA^e in more than $1,000 of undrawn dividends. "All 
 goods shall be bought and sold for cash, and semi-annual statements 
 shall be published. Each share of stock is entitled to one vote, but the 
 net profits (after setting aside five per cent for reserve and a like sum 
 for the contingent fund) shall be divided in dividends to stockholders, 
 but in such division the purchase checks of stockholders shall bear 
 the same rate of dividend as the capital stock ; thus patrons can get no 
 rebate or dividend on purchases unless they are stockholders. Six per 
 cent interest is allowed upon undrawn dividends, and members can 
 withdraw at the rate of five dollars per month. Membership is open 
 to all whose application is approved by the directors. 
 
 Eau Claire, Wisconsin, boasts of the Coc'peratlve Mercantile Asso- 
 ciation, incorporated Dec. 17, 1887, with $1,000 capital. The past two 
 years, with an average capital of $1,700, made $3,800 in profits, which 
 one hundred and twelve per cent per annum on the average capital 
 employed, or an average saving of ten per cent on the goods consumed. 
 H. Selover, the secretary, is a faithful worker for the true cooperative 
 system. The report for the quarter ended Aug. 31, 1890, shows capital 
 stock to the amount of $1,995, fees $4, reserve fund $424, educational 
 fund $22, Interest $58, dividend $277 ; expense account $157, treasur- 
 er's account $15, labor account $523, merchandise $1,021, fixed stock 
 and furniture $696, cash $357, total $2,780. The receipts during the 
 quarter were : for merchandise sold $6,021, shares sold $105, fees col- 
 lected $2, cash on hand $292, total $6,420. The disbursements dur- 
 ing the quarter were: for expenses $157, labor $524, merchandise 
 $4,859, Interest $31, dividend $408, fixed stock $74, cash on hand $368, 
 total $6,420. The net gain for the quarter is $501,36, disposed of as 
 follows: two percent to edncational fund, $10; five per cent per an- 
 num Interest on the capital stock, $25 ; ten per cent per annum for 
 depreciation on fixed stock, $17.40 ; seven per cent dividend on sales, 
 $425.50 ; unexpended balance $27.44. Secretary Selover adds : 
 
 "We made a mistake in not putting in our by-laws an ironclad rule 
 that no profits or dividends should oe paid or withdrawn [but they 
 must be declared and placed to members' credit to encourage them]
 
 OTHER COOPERATIVE STORES. 321 
 
 from the business till the association had accumulated enough capital 
 to carry a line of all the kinds of goods its members needed. All coop- 
 erative associations should adopt this rule and use all gain in trade to 
 build up and enlarge the business. In paying out our profits in divi- 
 dends to customers, we lost the golden opportunity to build up our 
 business, and have made ourselves much poorer by our foolishness." 
 
 In Cowley County, Kansas, the South Bend Cooperative Association 
 of the Order of Patrons of Husbandry organized Aug. 16, 1879, and 
 now located at Constant, has non-transferable shares of $5 each. It 
 started with $180 capital, which, at the end of the tenth year, had 
 increased to $5,739, of which only $1,080 had been paid in in cash. 
 The trade was small the first two years, but the sixth year amounted 
 to $5,287, the tenth year to $8,678, and this year (1891 the eleventh) 
 will reach nearly $12,000. The members have not materially in- 
 creased, being forty-four against thirty-five at the start, and expenses 
 have averaged $475 a year. Cash payments are insisted upon. Mis- 
 takes were made by paying too much of the profits back to the share- 
 holders, allowing salesmen too much liberty in the management, fail- 
 ing to enforce the directors' orders, and failure to keep a strict account 
 during the early years. The success has been due to doing business 
 within the limits of capital, all trade being done on a cash basis as 
 nearly as possible, treating all customers alike and paying them a 
 rebate according to the amount of purchases made. 
 
 Books are kept on the single entry system, two efficient employes 
 carrying on the business. Quarterly invoices and settlements were 
 made the first five years ; since then they have been semi-annual. The 
 auditor's statement for the six months ended March 31, 1891, show 
 cash on hand of $276, merchandise, $3,522, fixtures $224, buildings 
 $704, real estate $100, accounts receivable $903, total $5,729. The 
 liabilities include 341 shares, $1,735 ; fractional shares $24, bills paya- 
 ble 266, total $2,024. The resources over liabilities are thus $3,705, 
 of which $536 is the net gain for the six months. The profits are dj- 
 vided, giving fifty per cent to all customers alike under the ticket 
 system, twenty per cent to the employes pro rata as dividend on their 
 wages, and thirty per cent to reserve fund in lieu of interest to share- 
 holders. R. W. Anderson, the secretary, writes : 
 
 "Tills arrangement brings the just principles of profit-sharing to all 
 who come in contact with the business. The first is the essence of 
 cooperation, the second is a measure of justice and progress, and the 
 third is a reform with points of advantage, capital is not placed above 
 labor and the other elements which earn tlic profits. A fixed charge, 
 as interest, becomes at times a menace to otlier interests equally enti- 
 tled to protection. No element should be entitled to profits until after 
 the same are realized. A store paying fixed interest on capital is not 
 far different from a party doing business on borrowed capital. The 
 chief drawbacks to cooperation in a farming community like this is 
 the moving propensities of people, not one-fifth of tlie charter members 
 being with us now. There Is also an indifference to small savings and 
 an impatience with small beginnings." 
 
 Co-operation Amongr Florists.- A practical scheme is the organiza- 
 tion of florists in different cities whereby orders taken In one city for 
 flowers or arrangements to be delivered In other cities were filled on 
 telegraphic order by the member of the association doing business 
 tliere. For instance, if Mrs. Jones, in Chicago, wanted to send some 
 flowers to Mrs. Jones, in New York, she could leave her order with the 
 Chicago member of the association, he telegraphs the order to the 
 
 n
 
 322 HOW TO COOPEEATE. 
 
 New York member, and delivery Is at once made. The New York mem- 
 ber charges the same to the Chicago member, less a commission, and 
 the latter, of course, collects from the customer. This association, the 
 idea of wliich originated with Mr. C. B. Whitnall, of Milwaukee, now 
 has members in nearly all of the large cities, and a new feature has 
 recently been added in the form of a letter of credit, which members 
 may issue to customers who are going to travel. This is an order on 
 any of the members of the association, good for a stated length of time, 
 anything delivered on account of it to be charged to the one issuing it, 
 he to collect for same, and receive a commission on the sales. By this 
 means it is expected to secure to the association the trade of the cus- 
 tomers of each one while away from home. 
 
 The Farmers' Co-operative Union, of Bntte County, Cal., was in- 
 corporated April 28, 1884, with $25,000 authorized capital. The cost 
 of the buildings, land, etc., was $23,000. To meet this, $10,000 was 
 paid in on capital and $10,000 borrowed at ten per cent for two years 
 and then for eight and one-half per cent until the mortgage was can- 
 celed in July, 1890. The corporation is now out of debt and has paid 
 $1,760 in dividends. The original stockholders numbered about fifty, 
 mostly farmers. During the second year many farmers sold their stock 
 on account of an unfounded rumor that some capitalist was getting a 
 controlling interest and would freeze out the small shareholders. The 
 present number of shareholders is fourteen, half of whom are farmers. 
 The Union has done a warehouse storage business only, making loans 
 on the grain in its warehouse, getting the money for the purpose from 
 the Grangers' bank. C. M. Brown, of Riggs, is the superintendent and 
 secretary. 
 
 The Riverside Co-operative Association was incorporated Nov. 12, 
 1878, having been organized two years earlier with thirty-six members 
 and $105 capital, as an outgrowth of the local council of the Sover- 
 eigns of Industry at Maynard, Mass. The membership has increased 
 to 370, profits being paid in dividends on purchases after setting aside 
 one-tenth for the redemption fund. The number of $5 shares held by 
 one member is limited to fifty, and the profits on non-shareholders' 
 purchases are retained until they amount to a share. Some credit is 
 allowed to members that have an interest in the store, but the amoimt 
 trusted does not exceed $1,000. 
 
 One mistake was made in putting up a big building at a cost of $15,- 
 000, containing a public hall and dining-room, and stores underneath 
 to let, besides accommodations for the coop store, which does not pay 
 as an investment. Another mistake was in selling goods at cost at the 
 start, which caused other stores to drop accordingly. "After our build- 
 ing was up and our business increased, our expenses consequently 
 increased, and we had to crawl up in prices, and this left us but little 
 room for dividends. Big dividends always build up a big business, but 
 can only be paid by selling goods at the usual retail prices. 
 
 " It will be noted from the following statement of progress that the 
 sales increased $17,000 in 1883 over the previous year, owing to our 
 takbig on a meat business which we didn't understand. So we dropped 
 It, and consequently our sales fell off again, and still further in 1885, 
 caused by poor management and distrust of the same, which falling 
 off was repeated in 1889 for the same reasons. So you see how neces-
 
 OTHER COOPERATIVE STORES. 
 
 323 
 
 sary it is to have a good manager to cater to the public taste," writes 
 Micliael Toomey, the treasurer. His statement follows : 
 
 Year. 
 
 Sales. 
 
 Capital. 
 
 Expenses. 
 
 Net 
 
 
 Total. 1 % 
 
 Earnings. 
 
 1878 
 
 $10,674 
 
 $1,500 
 
 $462 
 
 4.3 
 
 $392 
 
 1879 
 
 21,111 
 
 1,500 
 
 1,802 
 
 8.5 
 
 492 
 
 1880 
 
 21,131 
 
 1,500 
 
 1,879 
 
 8.9 
 
 563 
 
 1881 
 
 24,176 
 
 1,500 
 
 1,873 
 
 7.8 
 
 808 
 
 1882 
 
 33,973 
 
 8,845 
 
 2,687 
 
 7.9 
 
 1,544 
 
 1883 
 
 50,760 
 
 20,453 
 
 4,551 
 
 8.9 
 
 2,995 
 
 1884 
 
 38,675 
 
 20,094 
 
 3,679 
 
 9.6 
 
 2,554 
 
 1885 
 
 31,671 
 
 18,920 
 
 3,143 
 
 9.9 
 
 2,137 
 
 1886 
 
 44,188 
 
 22,360 
 
 4,235 
 
 9.6 
 
 2,755 
 
 1887 
 
 57,569 
 
 23,803 
 
 5,156 
 
 8.9 
 
 5,288 
 
 1888 
 
 63,827 
 
 25,733 
 
 6,101 
 
 9.6 
 
 4,961 
 
 1889 
 
 53,816 
 
 25,631 
 
 6,221 
 
 11.5 
 
 3,804 
 
 1890 
 
 54,187 
 
 25,015 
 
 6,297 
 
 11.6 
 
 3,766 
 
 Thirteen 
 
 Tot. $595,658 
 
 
 Tot. $48,086 
 
 
 Tot. $32,058 
 Av. $2,462 
 
 years 
 
 Av. $45,819 
 
 Av. $15,088 
 
 Av. $3,699 
 
 Av. 9.1 
 
 To the Stockholders and Members: The twenty-fifth semi-annual 
 report of the Riverside Association is for the six months ended June 
 30, 1891. We liave reduced the values of the building and fixed stock 
 by $225, besides putting $64 to the redemption fund, making $289 
 whicli is to tlie benefit of the stockholders, and consequently have 
 declared only two per cent dividend on purchases. We would urge 
 the members to leave their dividends standing to their credit, as it is 
 tlie only means of saving something for a future exigency. It would 
 also help to build up a better business in the store, as the amount of 
 goods we caiTy in stock now leaves but a small amount of working 
 capital, and we cannot take tlie advantage of tlie markets that we 
 otherwise could. You will see by comparing tlie present report with 
 former ones tliat the liability of the Corporation to its members is less 
 tlian it has been for years, and yet there has been a greater amount of 
 business done with tlie money Invested. There is another item that 
 we would like to call your attention to : Why do you ask for credit in 
 your own store? The principle of cooperation is "pay as you go," and 
 if such was adliered to, it would help to simplify business very much. 
 There is no reason why you cannot pay cash on delivery, when pay 
 day comes once a week. The treasurer's report for this half year 
 follows : 
 
 CASH ACCOUNT. 
 
 BECEIPTS. 
 
 Jan. 1st, 
 
 Cash on liand 
 
 Sales, gro. dep't. $25,216 83 
 
 " dry goods " 4,786 63 
 
 Store rents $159 48 
 
 Hall rents 228 60 
 
 Insurance rebate 16 26 
 
 231 shares 
 
 Members' loan,,, 
 
 $820 41 
 
 $30,003 46 
 
 388 08 
 
 1,155 00 
 996 60 
 
 $33,378 86 
 
 DISBURSEMENTS. 
 
 Jan. 1st, 
 
 Bills payable 
 
 Purchases, gro- 
 cery departm't $19,521 
 
 Purchases, dry 
 goods dep't 4,270 
 
 811 41 
 
 Wages 2,066 
 
 Freight and Exp. 346 
 
 Repairs 89 
 
 Incidental exp'n 164 
 
 Horse expense... 
 
 Ga.solene 
 
 Bags, fixt'rs, fuel 
 
 Insurance 
 
 Int. and dlvld'd 
 Shares and loans 
 Cash balance .... 
 
 -$23,791 96 
 
 - 2,667 61 
 
 144 96 
 
 112 22 
 
 192 70 
 
 223 75 
 
 1,247 84 
 
 2,186 68 
 
 2,009 84 
 
 133,378 86
 
 324 
 
 HOW TO COOPERATE. 
 
 Sundry Expenses 
 
 Interest 
 
 Depreciation 
 
 Add to Redemp- 
 tion fund 64 58 
 
 Two % dividend 
 on $18,500 370 00 
 
 PROFIT AND LOSS. 
 
 3,290 16 
 661 71 
 225 00 
 
 434 58 
 
 $4,611 45 
 
 Gross profits. 
 
 $4,611 45 
 
 $4,611 46 
 
 LEDGER BALANCES. 
 
 ASSETS. 
 
 Real estate $13,662 38 
 
 Fixed stock 1,432 98 $15,095 36 
 
 Merchandise, 
 
 grocery dept.. 5,878 38 
 Mercliandise, 
 
 Dry goods " 6,578 00-12,456 38 
 
 Supplies 80 63 
 
 Casli 2,009 84 
 
 $29,642 21 
 
 LIABILITIES. 
 
 2,558 shares $12,790 00 
 
 Members' loan.. 5,798 69 $18,588 69 
 
 Note 6,000 00 
 
 Int. and divid'd 866 71 
 
 Redempt'n fund 2,942 23 
 
 Bills payable.. . . 1,244 58 
 
 $29,642 21 
 
 The Farmers' Alliance Exchanges. Some of these are organized 
 on a permanent basis, while others are very temporary affairs, or sim- 
 ply engagements for bulking the orders of the members of the alliance 
 who choose to patronize the exchange. The following is a nearly 
 complete list of these alliance exchanges or alliance State business 
 agents, on Sept. 15, 1891 : 
 
 The Dakota Farmers' Alliance Company (R. B. Bentley, secretary), 
 Huron, S. D. ; J. "W. DoUison, Rector, Clay County, Ark., State business 
 agent; D. M. Fulwilor, 155 Lake street, Chicago, 111.; G. A. Gowan, 
 Nashville, Tenn. ; Bexter & Ceylon, Jacksonville, Fla. ; W. A. Brough- 
 ton, 25 West Hunter street, Atlanta, Ga. ; A. E. Sprague, Reynoldsburg, 
 O. ; M. L. Donaldson, Greenville, S. C. ; Charles M. Rider, Sardinia, 
 N. Y.; Maj. A. R. Venable, Jr., Box 337, Richmond, Va. ; W. H. Worth, 
 Raleigh, N. C. ; George H. Johnson, Romney, W. Va. ; J. H. Brammeier, 
 Alamosa, Colo. ; T. N. Clayton, New Orleans, La. ; The Caltfomia F. A. 
 & I. U. Agency, 12-14 Front street, San Francisco, Cal. (J. M. Moore, 
 agent); Farmers' Alliance Exchange, of Kentucky (W. W. Holland), 
 336 West Main street, Louisville, Ky. ; The Wisconsin Alliance Pur- 
 chasing Agency, P. F. Newell, treasurer. Star Prairie, Wis. ; E. R. Duvall, 
 Mnlhall, Logan County, Okla T. ; B. G. West, 224 Fruit street, Memphis, 
 Tenn. ; H. C. Demming, Uarrisburg, Pa,
 
 Co-operative Fire Insurance. 
 
 [See also pages 159-177, 305-310.] 
 
 HELPFUL HINTS. 
 
 Pratt's system of classification of rislc s includes a full line of blanks 
 and instructions, also registry books for policies, etc., indispensable to 
 all who would start or operate a cooperative insurance company; 
 George L. Pratt, Ridgeway, N. Y, An excellent index to policy registers 
 is made by Brown, Smith & Co. of Kansas City, Mo. 
 
 The reports State Central Organization of Cooperative Insurance 
 Companies of New York, obtainable from the secretary, C. W. Gifford of 
 Jamestown, N. Y., will be very valuable. Also the special reports on 
 farm mutuals and the model laws governing tlie same published by 
 the State Insurance Department, Lansing, Mich., price 25c. 
 
 NAMES AND ADDRESSES OF MUTUAL FIRE INSURANCE COMPANIES. 
 
 Maine : Harrison Mutual of Harrison ; Dresden Mutual of Dresden ; 
 "Warren Mutual of Warren; Cumberland Mutual of Cumberland; 
 AVoolwich Mutual of "Woolwich; Harpswell Mutual of Harpswell; 
 Patrons' Androscoggin Mutual of East Auburn; Jay Mutual of Jay; 
 Piscataquis Mutual of Dover; Oxford County Patrons of Husbandry 
 Mutual of South Paris; Fayette Mutual of Fayette; North Yarmouth 
 Mutual of North Yarmouth. 
 
 New Jersey: American Mutual of Plainfleld; Bergen Co. Farmers' 
 Mutual of Spring Valley; Bound Brook Mutual of Bound Brook; 
 Burlington County of Medford; Cumberland Mutual of Bridgeton; 
 Elizabeth Mutual of Elizabeth; Essex County Mutual of Bloomfleld; 
 Farmers' Mutual of Readington ; Farmers* Mutual of Salem; Hacketts- 
 town Mutual of Hackettstown ; Hillsboro Mutual of Neshanic; Mercer 
 County Mutual of Pennington; Monmouth County Mutual of Freehold; 
 Morris County Mutual of Morristown ; Patrons' Mutual of Hamilton 
 Square; Salem County Mutual of Salem; Sussex County Mutual of 
 Newton. 
 
 OHIO: Allen County Mutual Relief of Lima; Ashland County Patrons' 
 Mutual of Ashland; Brady Township of West Unity; Brown Township 
 of Malvern; Clarke County Farmers' Mutual Protection and Aid of 
 Springfield; Crawford County Farmers' Mutual of Bucyrus; Edinburg 
 Farmers' Mutual Protection of E<linburg; Erie County Farmers' Mutual 
 of Sandusky; Farmers' Home Mutual of New Knoxville; Farmers' 
 Mutual Relief of Wyandot County, Upper Sandusky; Farmers' Mutual 
 of Dayton; Farmers' Mutual of Farmer Post-Offlce; Farmers' Mutual 
 Home of Medina; Farmers' Mutual Aid of Leslie; Farmers' Mutual 
 Relief of Fremont; Farmers' Mutual of New Berlin; Farmers' Mutual 
 Fire and Lightning of Whittlesey; Farmers' Mutual of Thompson; 
 Fulton County Farmers' Mutual and Aid of Wauseon; Miami Farmers' 
 of Troy; Minster Mutual of Minster. 
 
 MICHIGAN: Farmers' Mutual Fire Insurance Co. of Allcg.in and 
 Ottawa Counties, Allegan ; Farmers' Mutual of Barry and Eaton 
 
 325
 
 326 HOW TO COOPERATE. 
 
 Comities, Hastings; Farmers' Mutual of Kalkaska, Missaukee and 
 AVexfoi-ii Counties, South Boardman; Farmers' Mutual of Lenawee 
 County, Adrian; Citizens' Mutual of Callioun County, Marsliall; 
 Concordia Mutual, Frankenlust; Eastern Jackson Farmers' Mutual, 
 (irassLake; Farmers' Mutual of Berrien and Cass Counties, Buchanan ; 
 Farmers' Mutual of Branch County, Coldwater; Farmers' Mutual of 
 Callioun County, Marengo; Farmers' Mutual of Cass County, Dowagiac ; 
 Farmers' Mutual of Clinton County, St. Johns; Farmers' Mutual of 
 Grand Traverse, Antrim and Leelanaw Counties, Traverse City ; Farmers' 
 Mutual of Ingraham County, Mason; Farmers' Mutual of Ionia County, 
 Ionia; 
 
 PENNSYLVANIA: Cool Spring Valley Mutual of Cool Spring, Mercer 
 Co; Farmers' Mutual of Tuscarora, Schuylkill Co; Dauphin County 
 Mutual of Linglestown; Goschenlioppen Mutual of Pennsburg, Mont- 
 gomery Co; Farmers' Mutual of Lancaster; Cumberland Valley Farmers' 
 Mutual of Middle Spring; Farmers' Mutual, Harbor Creek, Erie Co; 
 Farmers" Union Mutual of Trexlertown, Lehigh Co; Centennial Mutual 
 of Sliippensburg, Cumberland Co; Mt. Joy Township Mutual of 
 Elizabethtown, Lancaster Co; Buffalo Valley Farmers' Mutual of 
 Lewisburg, Union Co; Farmers' and Mechanics' Mutual of Elliottsburg, 
 Perry Co; Danville Mutual of Danville, Montour Co; Farmers' Mutual 
 of York ; Farmers' Mutual of Kremis, Mercer Co ; Patrons' Mutual of 
 Indiana, Indiana Co; Farmers' Mutual of McCandless Township, 
 Perrysville, Allegheny Co. 
 
 New York; New Scotland Mutual Insurance Co. of New Salem; 
 Farmers' Cooperative Insurance Co. of Angelica; Broome County P. F. 
 R. A. of Binghamton; Canaan Mutual F. I. Co. of Canaan Center; 
 Chautauqua County P. F. R. A. of Jamestown; Cooperative Fanners' 
 F. R. A. of Randolph; Farmers' Reliance of Chemung, Schuyler and 
 Yates Counties, Penn Yan; Courtland County P. F. R. A. Hunt's 
 Comers; Venice Town Insurance Co. of Genoa; Farmers' Mutual of 
 Rliinebeck County, Rhinebeck; Delhi Insurance Co. of Delhi; Erie and 
 Niagara Farmers' Insurance Association of Swormville; Jefferson 
 County Mutual F. I. Co. of Watertown; Livingston County Mutual 
 F. I. Co. of Scottsburg; Farmers' Fire Insurance Co. of Danube Minden. 
 
 Iowa: Boone Valley Mutual of Webster City; Brown Townsliip 
 Mutual, SpringvilJe; Chickasaw County Farmers' Mutual of New Hamp- 
 ton; De Moines County Farmers' Mutual of Burlington; Farmers' 
 Mutual of Dundee ; Farmers' Mutual of Chariton ; Fanners' Mutual Aid 
 of Garwin; Farmers' Mutual of Kalo; Farmers' Mutual of Sweetland; 
 Farmers' Mutual Aid Association of Preston; German Mutual of 
 Denver; Norwegian Mutual Protection Association of Decorah; Prairie 
 Farmers' Mutual of Coal Creek; Scandinavian Mutual of Pilot Mound; 
 Swede Mutual of Madrid; Swedish Mutual of Des Moines; Walcott 
 Mutual of Walcott; Western Cherokee Mutual of Marcus; White Pigeon 
 of Wilton; Iowa Mutual Tornado, Cyclone and Wind of West Union; 
 Merchants' and Manufacturers' of Clinton. 
 
 AVISCONSIN : Alden and Black Brook Mutual Fire of Little Falls; 
 Albion Mutual Fire of Edgerton; Brighton Mutual Fire Insurance Co. 
 of Salem; Bohemian Mutual Farmers' of Keilnersville; Berlin F. M. F. 
 and Liglitning of Berlin; Burnett Mutual Insurance Co. of Beaver Dam; 
 Bloomfleld Insurance Co. of West Bloomfield; Columbus Mutual Fire 
 Insurance Co. of Fall River; Concord Fire Insurance Co. of Concord;
 
 COOPERATIVE FIRE INSURANCE. 327 
 
 Calumet Mutual Fire of New Holstein; Dupont F. 31. Insurance Co. 
 of Marlon; Ettrick Sean. Insurance Co. of Ettrick; Farmers' Mutual 
 Insurance Co. of Durand ; Farmers' Mutual Insurance Co. of Millard ; 
 Fond du Lac Empire and Friendship of Fond du Lac; Farmers' Mutual 
 Fire Insurance Co. of Monroe; Farmers' Mutual Fire Insurance Co. of 
 Waterford; Farmers' Mutual Fire Insurance Co. of Tomah; Henrietta 
 Greenwood Union of Yuba; Hustisford Farmers' Mutual Fire Insurance 
 Co. of Hustisford. 
 
 Illinois : Algonquin Mutual F. I. Co. of Algonquin; Millbum 
 Insurance Co. of Millbum; Mutual Township Insurance Co., Shumway, 
 Monmouth Farmers' I. N. S. Co. of Monmouth; Belleville Farmers' 
 Mutual F. I. Co. of Belleville; Farmers' Mutual Insurance Co. of Guil- 
 ford; Allen and Otter Creek Mutual Insurance Co. of Sunrise; Farmers' 
 Mutual Fire of Palmyra, Dixon ; German Mutual Fire, 45 Eugenie St., 
 Chicago; Clinton Mutual of Clinton; Delavan Mutual of Delavan; 
 Peoria County Grange of Alta; Appanoose and Sonora of Nauvoo; Belle 
 Prairie Farmers' of Fairbury ; BuffaloMutual of Polo ; Ellington Farmei-s' 
 of Quincy; Hanover and Wayne of Elgin; La Prairie of Camp Grove; 
 Mount Pleasant of Morrison. 
 
 Minnesota : Farmers' Mutual ot New Sweden, Norseland; Otisco 
 Farmers' Mutual Insurance Co. of Otisco; Farmers* Mutual of Harmony 
 Harmony ; Patrons' Cooperative F. I. Co. of Anoka, Ramsej , and 
 Hennepin Counties, Richfield; Shelby Farmers' Mutual of Amboy; 
 St. Joseph Mutual of the Towns of St. Joseph, St. Cloud, Le Sauk and 
 St. Wendel, St. Joseph ; Town of Sumter Fire Insurance Association, 
 of Biscay ; Wilmington Fire Insurance Co. of Wilmington ; Holden and 
 Wheeling Mutual Fire Insurance Co. of Nerstrand; Rochester Farmers' 
 Mutual Co. of Rochester; Austin Farmers' Fire and Storm Mutual of 
 Dexter; Beaver Creek Mutual of Beaver Creek; Austin Farmers' 
 Mutual of Austin; Sumter Mutual of Sumter; Wilmington Mutual of 
 Spring Grove. 
 
 Miscellaneous: The Husbandmen's Insurance Co. of Hardwick 
 Vt. The Mass. Patrons' Mutual of Medfield, Mass. Texas Mutual P. of 
 H. of Galveston, Texas. Farmers' Union of Plumb Creek, Neb. 
 Arkansas Valley of Wichita, Kan. Mennonite Mutual of Halstead, 
 Kan., while although Incorporated In 1880 is a direct offspring of the 
 Tlegenholl Fire Insurance Association of Prussia over 200 yeai-sold; 
 and we especially commend the experience of tliis thrifty Mennonite 
 Company to beginners. Patrons' Mutual of Meriden, Ct; Fanners' 
 Mutual of South Bend, Ind; P. of H. Mutual Insurance Co. of Greens- 
 burg, Ind. Lower Columbia Fire Relief Association of Washougal, 
 Washington. 
 
 LXVE STOCK INSURANCE COMPANIES. 
 
 The Central Nebraska Live Stock Insurance Co., Kearney, Neb. 
 American Horse Owners' Protective A8.soclatlon, Toledo, O. Cleveland 
 Mutual Live Stock Association, Cleveland, O. Berks County Live 
 Stock, Reading, Pa. Dauphin County Live Stock, Millersburgh Pa. 
 Farmers' and Breeders' Live Stock, Butler, Pa. Farmers' Live Stock, 
 Jackson Center, Pa. Globe Live Stock Sprlngtown, Pa. Harrlsburgh 
 Live Stock, Harriaburgh, Pa. Jefferson County Live Stock, Reynolds- 
 vUle, Pa, Lancaster County Live Stock, Columbia, Pa. National Live
 
 HOW TO COOPERATE. 
 
 Stock, Mount Union, Pa. Pennsburg Horse, Pennsburg, Pa. People's 
 Live Stock, Philadelphia, Pa. Trumbauersville Horse, Trunibaiiers- 
 ville. Pa. Tylersport Live Stock, Tylersport, Pa. Union County Live 
 Stock, Mlffliuburg, Pa. 
 
 Co-operative Dairying. 
 
 [See also Pages 143-158.] 
 Co-operative Creameries. 
 
 By addressing the " Cooperative Creamery Association " at each of 
 the postofflces named below, the reader will be put into communication 
 with many successful efforts of this kind : 
 
 Massachusetts ; Amherst, North Brookfleld, Northfleld, Ipswich, 
 South Egremont, Hinsdale, Phillipston, Rutland, Shelbume Falls, 
 Conway, West Dudley, Ashby, Northampton, West Millbury, Cumming- 
 ton, New Boston, Wellesley Hills, Easthampton, Monterey, Wilbraham, 
 Granby, Bridgewater, Belchertown, Ashfield, Uxbridge, Lee, Millbury. 
 
 Connecticut :Wapping, Canton Center, Simsbury, East Granby, 
 Lanesville, Northville, Plainville, (Pomfret Landing, Wethersfield, 
 West Hartford, Lebanon, Avon, Ellington, West Goshen, MeiTow, 
 Windsor, Glastonbury, Colchester, Chapinville, Andover, Wallingford, 
 Cromwell, Newton, Cheshire, Eastford, Brooklyn, Somers, Banksville, 
 Southington, Suffleld, New Canaan, Putnam, Rockville, Goodspeed's 
 Landing, Jewett City, Woodstock, Warehouse Point, Ridgefield, East 
 Hampton, Cornwall, Monroe, North Stonington, Riverton, Black Hall, 
 Berlin, Granby, Green's Farms, Farmington. 
 
 Vermont : Sudbury, West Brattleboro, Jacksonville, Wilmington, 
 Felchville, Westminster, Springfield, Glover, Barton Landing, Ben- 
 nington, Woodstock, Sharon. 
 
 Maine :Sebattu8, Winthrop, Turner Center, Skowhegan, Foxcroft, 
 West Paris, Acton, Button's Mills, Buckfleld, Fayette, Springvale. 
 Clinton, Rockland, Rumford, Poland, Garland, East Lebtiuon, Bangor. 
 
 New Hampshire : Franklin, Peterboro, Goshen, Henniker, East 
 Washington, Durham, Keene, Grantham, Littleton, New Boston, Clare- 
 mont, Freedom, Wolfboro Junction, Cornish, East Haverhill, Haverliill, 
 North Haverhill, Lebanon, Wakefield, Lyme, Piermont, Sandwich, 
 West Canaan, West Lebanon. 
 
 New York : Friendship, Moreland, Coldwater Creamery at Kennedy, 
 Davenport, A'alley Creamery at Smith's Basin, Poughkeepsie, Glens 
 Falls, Chatham, Putnam, Salt Point, Schuylerville, Shushan, Hopewell 
 Junction, Windham, Watkins, Cazenovia, Eagle Mills, Upper Red 
 Hook, Smjrma. 
 
 Rhode Island: Hope Valley, Wakefield, Moosup Valley, South 
 Foster, Newport. 
 
 Pennsylvania : Austinville. Lemont, Leraysville, Troy, Spring Mills 
 Cooperstown, Lower Windsor, Mercersburg, Meyersdale, Huntingdon) 
 South Gibson, Newfoundland, Somerset, Bodines Station, Williamson,
 
 COOPERATIVE DAIRTIKG. 329 
 
 Solebury (Albert Preston, Sec), Buckingham (T. Howard Atkinson, Sec.) 
 Buckmanville (J. D. Williams, Sec.) 
 
 Iowa : State Center, West Union, Republic, Columbia City, Farley. 
 
 Wisconsin : Berlin, Somers, Trempeleau, West Salem, Jonesvllle, 
 Sumpter of Prairie du Sac, Sauk City, Merrimack, Crystal Lake of 
 Lodi. 
 
 Nebraska : Lyons. 
 
 Michigan : The only cooperative creamery in this State is at Flint, 
 S. J. Wilson, Manager. 
 
 Minnesota : Oslo, Wall Lake, RovmdLake, Arcade Creamery Associ- 
 ation at St. Cloud. 
 
 Missouri : Martinsburg, Dawn. 
 
 Ohio : Sharion, Bellevue, Leetonia, West Salem, Gallon, Lexington, 
 (W. W. Coekley, Manager.) 
 
 Illinois : Naperville, Dakota, Hooppole, Aurora, Sparta. 
 
 Cheese Factobies. 
 
 Maine :Nicker8on cheese factory at Houlton; Winthrop creamery 
 at Winthrop; R. D. Leavitt, North Turner; Saugerville cheese factory, 
 Saugerville ; B. Turner, Leeds. 
 
 Vermont : Castleton cheese co. of Castleton ; Egal cheese factory of 
 Cavendish ; Chester cheese co. of North Chester ; R. R. Earle of Chester ; 
 N. M. Powers of Clarendon ; W. W. Jenks of North Clarendon ; Grafton 
 Cheese Co. of Grafton ; Valley cheese factory of Hinesburg ; George W. 
 Curtis of Ira; Manchester cheese factory association of Manchester 
 Center ; Henry Lord of Mount Holly ; A. W. Crawley of Mount Holly ; 
 William Hoskinson of Mount Holly ; M. Tarbell of Mount Holly ; Frank 
 Blakeley of Pawlet ; William Leach of Pawlet ; Carl Marks of Pawlet ; 
 East Poultney cheese factory co. of East Poultney; C. Hadwin of 
 Rockingham ; R. O. Hadwin of Rockingham ; Billings cheese factory of 
 Rutland ; Greene cheese factory of Rutland ; H. C. Gleason of Shrews- 
 bury ; L. A. Russell of Shrewsbury ; Gleason & Wilcox of Shrewsbury ; 
 Bates cheese factory of Cuttingsville ; W. E. Aldrich of Cuttingsville ; 
 Smith Town cheese factory of West Rutland. 
 
 New York : Old Manhelm cheese factory of Little Falls; Fairfield 
 dairy association of Little Falls ; Eatonville cheese factory of Little 
 Falls; Manhelm Turnpike association of Little Falls; Sneilsbush 
 factory of Little Falls ; Burt Grove factory of Little Falls ; Danube Cold 
 Spring factory of Little Falls ; Cross Roads cheesa factory of Johnstown ; 
 South Columbia factory of South Columbia; East Creek factory of East 
 Creek ; Flat Creek factory of Sprakers ; Fort Willett cheese factory of 
 St. Johnsville ; Ives & Eaton factory of Salisbury ; Johnstown cheese 
 factory of Johnstown; State Hill factory of Ephratah; St. Johnsville 
 factory of St. Johnsville; Spraker's cheese factory of Sprakers; Sneils- 
 bush cheese factory of East Creek ; Smith Creek factory of Fort Plain ; 
 Fairfield Dairy Central factory of Mlddleville. 
 
 Ohio: Tlie Lexington Butter and Cheese Manufacturing Co. of 
 Lexington. 
 
 MICHIGAN: Ann Arbor cheese factory of Ann Arbor; Clayton cheese 
 and butter company of Clayton ; Birch Run clieese company of Birch 
 Run ; Dowlngton cheese company of Dowlngton ; JuddvUle butter and 
 cheese company of JuddvUle; Lynn cheese manufacturing company 
 of Lynn; Cheese and butter association of RawsonvUle; RichvlUe
 
 330 HOW TO COOPERATE. 
 
 cheese company of Richville; Oneida cheese company of River Bend; 
 ast Huron cheese company of Sand Beach. 
 
 Missouri: Cooperative butter and cheese association of Lamonte, 
 New Haven, (J. M. Davis, Manager); Shell City, Bolivar, Prairie City, 
 (S. W. Sunderworth, Manager); Carthage, Tarkio, (J. H. Laughlin, 
 Manager) ; Verona, (August Smith, Manager.) 
 
 Co-operative Banks or Building Associations. 
 
 [See also Pages 178-206.] 
 
 Massachusetts Amesbury co; perative bank, Amesbury, George E. 
 Gale, secretary; Boston cooperative bank, Boston, Eugene M. Smith, 
 secretary ; Cambridge cooperative bank, Cambridge, John H. Pouce, 
 secretary; South Framingham cooperative bank. South Framingham, 
 H. L. Davenport, secretary ; Germania cooperative bank, Boston, An- 
 drew M. Dorr, secretary ; Franklin cocperative bank, Franklin, H. E. 
 Ruggles, secretary ; Fitchburg cooperative bank, Fitchburg, Joseph F. 
 Simonds, secretary; Gardner cooperative bank, Gardner, James A. 
 Stiles, secretary ; Fall River cooperative bank. Fall River, George E. 
 Lathrop, secretary; Equity cooperative bank, Worcester, T. J. Hastings, 
 secretary; Equitable cooperative bank, Lynn, Thomas CoUyer, Jr., 
 secretary. 
 
 New Jeksey Building and Loan Associations Bordentown, William 
 H. Wilson, secretary; Camden City, S. E. Fry, secretary; Franklin, E. 
 K. Tartiner, secretary; Cape May City, N. C. Price, secretary; Belle- 
 ville, R. P. Scaine, secretary ; Mutual building and loan association, 
 Newark, John Pardine, secretary; Clarksboro, J. H. Lamb, secretary; 
 People's B. & L. A., Harrison, J. A. Riordan, secretary ; Greenville B. & 
 L. A., Jersey City, R. Routh, secretary ; Mechanics' of Trenton, P. W. 
 Crozer, secretary ; Salem, D. W. Bullock, secretary ; Harmonia, of Eliza- 
 beth, R. Gerke, secretary; Phillipsburg No. 4, PhilJipsburg, S. C. Smith, 
 secretary. 
 
 Ohio In Cincinnati the following are a few of the most successful : 
 Tlie Cincinnati Turners' and Builders' Association, The Brighton Build 
 ers' Association, Tlie Great Western Builders' Association, the Big Four 
 Building and Savings Company, the Business Men's Building Association 
 and Loan Company, the City and Suburban Building Association and 
 Loan Company, the Consolidated Building and Savings Company, the 
 Elmont Building and Saving Company, the Emperor Building and Loan 
 Company, the Equality Building Association Company, the Excellent 
 Loan and Building Association Company, the Progress Loan and Build- 
 ing Company, the Fifth Ward Builders' Association, tlie Grand Cen- 
 tral Builders' Association, the Grand Union Builders' Association, the 
 Lafayette Builders' Association, the Landwehr Building and Saving 
 Company, the Mutual Home Building and Saving Company, the Na- 
 tional Building Association Company, the Queen City Building and 
 Loan Company, the Royal Building and Loan Company, the Seven- 
 teenth Ward Building and Loan Company, the New York Street Build-
 
 BANK OB BUILDING ASSOCIATIONS. 331 
 
 ing Company, the Young Men's Building and Loan Company, the West- 
 wood Avenue Building and Saving Company. Other business associa- 
 tions of Ohio are the Scioto Builders' Association, of Circleville; the 
 Cooperative Loan, Building and Savings Association, of Oxford ; the 
 Clinton Building and Loan Association, of Columbus; the Quincy 
 Building and Loan Association, of Quincy. 
 
 Minnesota Continental Savings, Loan and Building Company, of 
 St. Paul; Guaranty Building and Loan Association, of Minneapolis; 
 Home Savings and Loan Association, of Minneapolis ; Minnesota and 
 Dakota Building and Loan Association, of Minneapolis; Minnesota 
 Saving Fund and Investment Company, of Minneapolis; Northwestern 
 Loan and Building Association, of Minneapolis ; People's Building and 
 Loan Association, of Minneapolis; Railway Building and Loan Associa- 
 tion, of Minneapolis; Security Building and Loan Association, of 
 Minneapolis. 
 
 New York City American Savings and Loan Association, Assured 
 Building and Loan Association, Bank Clerks' Building and Loan Asso- 
 ciation, Citizens' Savings and Loan Association, Dry Goods Cooperative 
 Building and Loan Association, Daily News Building, Savings and 
 Loan Association, East Side Building and Loan Association, Eureka 
 Cooperative Savings and Loan Association, Equitable Cooperative 
 Building and Loan Association, Federal Cooperative Building and 
 Loan Association, Fordbam Cooperative Building and Loan Associa- 
 tion, Fraternity Cooperative Building and Loan Association, German- 
 American Building and Loan Association, Greenwich Building and 
 Loan Association, Home Mutual Building and Loan Association, Har- 
 em Cooperative Building and Loan Association, Herald Employes' 
 Cooperative Building and Loan Association, Industrial Cooperative 
 Building and Loan Associaton, Jewelers' Building and Loan Associa- 
 tion, Mount Morris Cooperative Building and Loan Association, Milli- 
 nery Building and Loan Association, Model Building and Loan Associa- 
 tion of Mott Haven, Metropolitan Cooperative Building and Loan Asso- 
 ciation, Mount St. "Vincent Building and Loan Association, Murray Hill 
 Cooperative Building and Loan Association, Manhattan Mutual Coop- 
 eration Savings and Loan Association, New York World Cooperative 
 Building and Loan Association, New York City Cooperative Savings 
 and Loan Association. 
 
 Pennsylvania In Philadelphia, a few of the most successful are : 
 Tlie City of Homes Building and Loan Association, Gurney Building 
 and Loan Association, Ben Franklin Building and Loan Association! 
 Royal Building and Loan Association, Ritner Building and Loan Asso- 
 ciation, Economy Building and Loan Association, Belrose Building 
 and Loan Association, Second Street Marks Building and Loan Asso- 
 ciation, Safeguard Building and Loan Association, Prospect Building 
 and lAtRn Association, Concord Building and Loan Association, f^>)lar 
 Hiiiltiing and rx)an Association, West Park Avenue Building and Loan 
 Association, Model Building and Loan Association. Ridley Building 
 and T,oan Association, Second (Jerman Soutlieastern Building Associa- 
 tion, Third German Central Building Association, Consolidation Build- 
 ing Association, Delaware Building Association, tlie Invincible Build- 
 ing and I>oan Association, the Atlas Building and I>oan Association, 
 the Northwest Building and Loan Association, the East Park Building 
 and Loan Association.
 
 332 HOW TO COOPEBATE. 
 
 Notes See Bibliography for list of newspapers, etc., on this depart- 
 ment of cooperation. Blanks, books and other supplies for cooperative 
 banks are a specialty with Thomas Galtney, 1414 South street, Spangler 
 & Davis, 629 Commerce street, Philadelphia, Pa. 
 
 Directory of Women's Exchange. 
 
 [See Pages 241-252.] 
 
 In this list, it is only necessary to address " The "Women's Exchange" 
 at each address given, though where the name of the exchange is 
 different from this title it is printed In full. 
 
 Arkansas, Little Rock, 121 Main street. California, Los Angeles, 
 Woman's Industrial Exchange, 125 East 4:th street ; San Diego, Woman's 
 Industrial Exchange, 939 Sixth street ; San Francisco, 116 Sutter street ; 
 Santa Barbara, Woman's Industrial Exchange, 729 State street. 
 Connecticut, Bridgeport Exchange for Woman's Work, 24 P. O. 
 Arcade ; Hartford, United Workers and Woman's Exchange, 49 Pearl 
 street; Stamford, Exchange for Woman's Work, 9 Atlantic street; 
 Waterbury, 149 Bank street. Washington, 609 13th street, N. W. 
 Georgia, Augusta, 309 Mcintosh street. Illinois, Chicago, Exchange for 
 Woman's Work, 209 Wabash avenue; Decatur, North Park street; 
 Jacksonville, 317 West State street ; Springfield, 227 South 5th street. 
 Kansas, Woman's Industrial Exchange, Corner Sixth street and Kansas 
 avenue; Topeka, Ladies' Exchance, 119 West Sixth avenue; Wichita, 
 243 North Main street. 
 
 Kentucky, Lexington, 42 North Upper street ;'Louisiana, New Orleans, 
 Christian Woman's Exchange, South and Camp streets. Maryland, 
 Baltimore, Woman's Industrial Exchange, 331 North Charles street. 
 Massachusetts, Amherst; Boston, Woman's Educational and Industrial 
 Union, 98 Boylston street; New Bedford, Depository of the Union for 
 Good Works, 6 Purchase street : Northampton, Exchange for Woman's 
 Work, 3 Main street; Worcester Woman's Employment Society, 5 
 Forest avenue. Michigan, Detroit, Exchange for Woman's Work, 
 12 Grand River avenue. Minnesota, Duluth, Woman's Work Exchange, 
 323 Superior street; St. Paul, Woman's Work Exchange, Endicott 
 Arcade. Missouri, St. Joseph, 513 Francis street; St. Louis, 617 Locust 
 street. 
 
 New Jersey, Elizabeth, 87 Broad street ; Englewood, Woman's Work 
 Exchange, Palisade avenue; Morristown, Woman's Work and Art 
 Exchange, South street; Newark, Exchange for Woman's Work, 544 
 Broad street ; New Brunswick, Woman's Depository and Exchange, 
 Neilson street; Plainfleld, 61 Park avenue. New York, Albany, 46 
 North Pearl street ; Brooklyn, Woman's Work Exchange and Decorative 
 Art Society, 122 Atlantic avenue : Buffalo, 298 Main street ; Mt. Vernon, 
 66 Fourth avenue; New York, Exchange for Woman's Work, 329 Fifth 
 avenue; New York, Harlem Exchange for Woman's Work, 40 West
 
 DIRECTORY OF WOMEN's EXCHANGES. 333 
 
 125tli street; New York, Madison Avenue Depository and Exchange 
 for Woman's Work, 628 Madison avenue, comer 59th street ; Rochester, 
 Rochester Art Exchange, 510-12-14 Powers' Building; Troy, 43 Fourth 
 street; Utica, 240 Genesee street. Ohio, Cincinnati, Comer Race and 
 Longworth streets ; Cleveland, 61 Kendal Building, 106 Euclid avenue; 
 Columbus, 17 High street. 
 
 Pennsylvania, Harrisburg, Art Exchange, 10 North Mark square; 
 Lancaster, 118y2 East King street; Philadelphia, Ladies' Depository 
 Association, 1108 Walnut street; Philadelphia, Exchange for Woman's 
 Work ; Pittsburgh and Allegheny, Woman's Industrial Exchange, 628 
 Pennsylvania avenue, Pittsburg. Rhode Island, Bristol, Exchange for 
 Woman's Work, Hope street; Neport, Woman's Exchange, 24 Washing- 
 ton square; Providence, R. I. Exchange for Woman's Work, 29-33 
 Market square. South Carolina, Charleston, Exchange for Woman's 
 Work, 217 King street. Tennessee, Memphis, Exchange for Woman's 
 Work, 32 North Court street. Texas, Houston, 120 Main street; San 
 Antonio, 7 Avenue D. 
 
 Virginia, Charlottesville, Exchange for Woman's Work, 124 Main 
 street ; Lynchburg, 811 Main street ; Norfolk, Woman's Work Exchange, 
 43 Granby street; Richmond, Exchange for Woman's Work, 327 East 
 Franklin street; Staunton, Main street. Washington, Tacoma, Tacoma 
 Exchange, 109 South 10th street. Wisconsin, Madison, 12 Carroll street; 
 Milwaukee, Woman's Industrial Exchange, 413 Milwaukee street; 
 Oshkosh, 22 Washington street. Dominion of Canada, Montreal, 
 Woman's Industrial Exchange, 2260 St. Catherine street.
 
 The Laws Relative to Co-operation. 
 
 BY EDMUND P. KENDRICK. 
 
 All abstract of the laws of the States and Territories concerning the 
 organization of cooperative associations, talcen from the best sources 
 obtainable, is given below. In many of the States there is no special 
 law for organization of work associations. In such cases the law 
 governing ordinary business corporations is given. Corporations 
 organized under general laws will often be as useful as if under a 
 special law for cooperative societies. Some States have special statutes 
 relative to cooperative fire insurance, banks and banking associations. 
 
 The abstracts given are generally only brief summaries of the law in 
 each State. It will generally be found advisable to employ some 
 attorney to assist in the drawing up of papers, and to see that all the 
 requirements of statutes are complied with. Sets of the blanks 
 required can in most cases be obtained by writing to the Secretary of 
 State at the State Capital. 
 
 Alabama No special law for co-operative enterprises. Two or more persons 
 can form themselves into a private corporation for the purpose of carrying on any 
 lawful business except certain kinds specifically provided for by law, by filing in 
 the probate court of the County where such company proposes to have its principal 
 place of business a written declaration signed by themselves setting forth the 
 names and residences of the petitioners, the name ol liie proposed corporation, 
 the place wliere It is to have its principal or only place of business, the nature of 
 the business to be done, the amount of capital stock. Fifty per cent of the pro- 
 posed capital stock must be subscribed, and twenty per cent paid in before tha 
 court will issue a certificate of incorporation and the company authorized to do 
 business. 
 
 Arizona Any number of persons may form a corporation for any lawful kind 
 of business. The corporators before commencing business must adopt articles 
 which must be signed and acknowledged same as deeds and recorded in the County 
 recorder's office. The articles nnist contain the name of the corporators and of the 
 corporation; the nature of the business to be transacted; amount of capital stock 
 and how and when to be paid in; time of commencement and expiration; what 
 officers the company is to have and when and how elected; the largest amount of 
 Indebtedness to be contracted; whether or not private property is to be exempt. 
 This last is Important as otherwise corporators are liable for debts. Articles must 
 be published six days in a newspaper published In the County. The company may 
 then commence doing business. Copy of newspaper must be filed in the office of 
 secretary of the territory with three months. For general purposes the existence 
 must be limited to twenty-five years, but may be renewed. 
 
 Arkansas- Any number of i)ersons, not less than three, may associate them- 
 selves under the general corporation law for any lawful purpose. The capital 
 stock must be divided into shares of twenty-five dollars each. The corporators at 
 the first meeting adopt articles of incorporation and elect directors. The directors 
 choose the other officers. Before commencing business a certificate stating names 
 
 334
 
 THE LAWS EELATIVE TO COOPEBATION. 335 
 
 of Incorporators, etc., copy of articles of Incorporation must be filed with the 
 Secretary of State and with the County Clerk. 
 
 Califoknia Organizations must be under general corporation law. Five or 
 more persons may associate themselves for any lawful purpose. They must adopt 
 articles of incorporation setting forth the name, place of business, purpose, term of 
 existence not to exceed fifty years, number and names of directors, amount of 
 capital stock and amount paid in. The articles must be signed, acknowledged and 
 filed with the Secretary of State and County Clerk. Ten per cent of the subscribed 
 capital must be paid In before articles are filed. In this State stockholders are 
 liable for such proportion of the debts of the company as their part of the capital 
 stock bears to the whole capital. The full text of the special law Insuring the 
 safety of loans stored In the local warehouses, as referred to in page 196, is as 
 follows : 
 
 Section 1. That no warehouseman, wharfinger, or other person, doing a storage 
 business, shall issue any receipt or voucher for any goods, wares, merchandise, 
 grain, or other produce or commodity, to any person or persons purporting to be 
 the owner or owners thereof, unless such goods, wares, merchandise, grain or other 
 produce or commodity, shall have been bona fide received into store by such 
 warehouseman, wharfinger, or other person, and shall be in store and under his 
 control at the time of issuing such receipt. 
 
 Sec. 2. That no warehouseman, wharfinger, or other person engaged In the 
 storage business, shall issue any receipt or other voucher upon any goods, wares, 
 merchandise, grain, or other produce or commodity, to any person or persons, as 
 security for any money loaned, or other Indebtedness, unless such goods, wares, 
 mercliandise, grain, or other produce or commodity sliall be, at the time of Issuing 
 such receipt, the property of such warehouseman, wharfinger, or other person, 
 shall be in store and under control at the time of issuing such receipt or voucher as 
 aforesaid. 
 
 Sec. 3. That no warehouseman, wharfinger, or other person as aforesaid, shall 
 issue any second receipt for any goods, wares, merchandise, gi'aln, or other procUue 
 or commodity, wliile any former receipt for any such goods or chattels as afore- 
 said, or any part thereof, shall be outstanding and uncancelled. 
 
 Sec. 4. That no warehouseman, wharfinger, or other person as aforesaid, shall 
 sell or encumber, ship, transfer, or in any manner remove beyond his innnedlate 
 control, any goods, wares, merchandise, grain, or other produce or commodity for 
 which a reei'li>t shall have been given as aforesaid, without the written assent of 
 the person or persons holding such receipt or receipts plaliUy indorsed thereon In 
 Ink. 
 
 Sec. 5. Warehouse receipts for property stored shall be of two classes: First, 
 transferable or negotiable: and second, rion-transferal)k' or non-negotiable. Under 
 the first of these classes, all property shall be transferable by the indorsement of 
 the party to whose order such receipt may be Issued, and sucli Indorsement of the 
 party shall be deemed a valid transfer of "the proi)erty represented by such receipt, 
 and may be In l)lank or to the or<Ier of another. All warehouse receipts for 
 property stored shall distinctly state on their face for what they are Issued, as, 
 also, the brands and <llstln)zui>liing marks; and In the case of grain, the number of 
 sacks and number of pounds, and kind of grain; also, the rate of storage per 
 month or season charged for storing the same. 
 
 Sec. 6. No warehouse man, or person or persons, giving or Issuing negotiable 
 re<;elpts for goods, grain or other in-opcrty on storaijo, shall di'llver sjild i)roperty, 
 or any part thereof, without liidor.sliig iii"in tin' back of saiil i ccclpt or receipts. In 
 Ink. the amount and date of the deliveries. Nor shall hi' en- tliey be allowed to 
 make any off-set, claim, or denianil other than as ('x|)resHed on the fact^ of the 
 recelnt or receipts ls.sued for the sajiie, when caUed upon to deliver sjild goods, 
 mercnamllse, grain, or other proi)erty. 
 
 Sec. 7. No waridiousemaii, or person or persons, doing a getieral storage buslnes, 
 giving or l.ssuliig non-negotiable or non-transf('rai)l<! receipts for goods, grain, or 
 other |)ro|)erty on storage, shall deliver said proi)erty, or any part thereof, excejtt 
 upon the written order of the person or i)ersons to whom the receipt or receipts 
 were Lssued. 
 
 Sec. 8. All receipts Issued by any warehouseman or other i)erson under this Act, 
 other than negotiable, shall have printed acro.ss their face, In bold distinct letters 
 In red Ink, the words non-negotiable. 
 
 Sec. 0. No warehouseman, personor persons, doing ageneral storage business, shall 
 be re.sponslble fur any loss or damage to pniiierty by fin- while In his or their 
 custody, provided reasonable care and vigilance be e.\erclsed to protect and 
 preserve the .same. 
 
 Sec. 10. Any warehou.seman, wharfinger, iwrson or persons.who shall violate an v 
 of the foregoing jtrovlslonsof thi.s Act, is gtiiltv of felony, shall be subject to Indict- 
 ment, and, upon conviction, sh;ill be fined in a siini not exceeding i?5,()0(i, or 
 Imprisonment In the Slate Prison not exeeedlie,' live years, or both. And all and 
 every person aggrieved liv the violation of aiiv of the |irovlslons of this Act, may 
 have and maintain an action against the (lerson or persons violating any of the 
 foregoing provisions of this Act, to recover all damages, immediate or consequent,
 
 330 HOW TO COOPEBATE. 
 
 which he or they may have sustained by reason of any such violation as aforesaid, 
 before any court of competent jurisdiction, whether such person shall have been 
 convicted under the Act or not. 
 
 Colorado Organizations to be under general corporation law. Three or more 
 persons may organize. They must adopt, sign and acknowledge a certificate of 
 incorporation, which shall contain the name of the company, business to be carried 
 on, amount of capital stock, term of proposed existence not exceeding twenty 
 years, number of sliares of slock, place where business is to be carried on. A copy 
 of the certificate is to be filed with the recorder of each County and in the office 
 of the Secretary of State. Shares of stock must not be less than one dollar nor 
 more than one hundred dollars each. 
 
 Connecticut Seven or more persons may associate themselves together and 
 form a co-operative association by articles of agreement signed by the members 
 and recorded in the Clerk's office of the town where the business is to be 
 transacted. The first meeting should be called by notice as provided by statute, 
 or this notice may be received in writing by all the signers to the agreement. A 
 copy of the by-laws must be recorded in the Town Clerk's office. The business of 
 the association is to be managed by a president, treasurer and a board of not less 
 than five directors. The capital stock cannot exceed g50,000. No person can 
 become a stockholder except by the consent of the managers. 
 
 Delaware The purposes for which a corporation or association may be formed 
 in this State are limited, but the process is simple. They are formed under the 
 general corporation Act, which provides for incorporation for the purposes of 
 carrj-ing on any manufacturing business, for preserving animal or vegetable f ood,f or 
 draining low lands, for business loan associations and for religious, charitable and 
 literary purposes. Three or more persons make articles in writing stating the 
 objects, conditions, capital, name, etc., and present them to the associate judge of 
 the supreme court of the County in which the principal business is to be transacted. 
 If after examination and publication no sufficient reason is shown to the contrary, 
 the signers are incorporated. It is probable that business can be obtained to 
 maintain co-operative stores, etc. 
 
 District of Columbia Must organize under general corporation law. The 
 process is in brief, by making and acknowledging a certificate, and recording the 
 same in the office of the Recorder of the District. 
 
 Florida Organizations to be under general corporation law. Notice must be 
 published in newspaper containing name, place and nature of business, amount of 
 stock, how paid in, time of commencement and termination, highest amount of 
 indebtedness, list of officers. Copies of articles are to be filed with Secretary of 
 State, and Clerk of Circuit Court. The corporation exists when the articles are filed. 
 
 Georgia Corporations under general laws are granted by the Supreme Court. 
 The persons desiring a charter file a petition in the clerk's office, stating the objects 
 of the association, name, amount of capital, etc. The court after notice by 
 publication can grant the charter. The charter is for twenty years with privilege 
 of renewal. 
 
 Idaho Five or more persons may file a certificate acknowledged by them in the 
 office of the Recorder where the principal place of business is to be located. The 
 certificate should state the name of the proposed company, place of buslnessi 
 amount of stock, number of shares, time of existence, not to exceed fifty yeai-s, 
 number and names of trustees. The trustees named shall hold their offices for 
 three months. Each stockholder is liable for his proportion of the debts of the 
 company. 
 
 Illinois May organize under the Act providing for the incorporation of 
 co-operative associations, or under general laws for forming corporations. Under 
 the first named Act not less than three nor more than seven persons who desire to 
 become incorporated as a co-operative association for the prosecution of any 
 branch of industry, may make a statement to that effect under their hands and 
 seals duly acknowledged, setting forth the name of proiwsed association, capital 
 stock, duration, location and the particular branch of industr>' which they intend to 
 prosecute. This statement is to be filed in the office of the Secretary of Stata.
 
 THE LAWS BELATIVE TO COOPERATION. 337 
 
 The secretary shall therefore Issue a license to such persons as commissioners to 
 open books for subscription. No person can take more or less than one share. 
 When tn or more shares are subscribed the commissioners call a meeting of the 
 subscribers for the purpose of organizing by electing directors, adopting by-laws, 
 etc. The commissioners make a report to the Secretary of State, who issues a 
 certificate of Incorporation, and when a copy of the certificate is recorded in the 
 office of the Recorder of Deeds of the County where the principal place of business Is 
 located the association is fully organized and ready for business. The shares of 
 stock under this law shall not be less than jjSSO nor more than g2,000 in value. 
 It is intended in associations organized under this Act that each shareholder shall 
 put in his own labor for the benefit of the association, or may, when necessary, 
 employ a competent substitute, the chief feature of the associations being the 
 co-operation of labor. 
 
 Corporations may be formed in a similar manner, under the general corporation 
 law, without this principle of co-operation of labor, the value of the shares being 
 from ten to two hundred dollars, no limit as to the number of shares to be taken 
 by each subscribed. 
 
 Indiana Companies may be Incorporated by three or more persons. Articles 
 c-' association are to be executed and filed In the oflice of the Secretary of State. 
 When the requirements of organization are compared with it, a statement Is to be 
 recorded in the office of the Clerk of the Circuit Court. 
 
 Indian Tkrkitoky Chkeokek Nation No associations of this character 
 are chartered within the limits of the Cherokee Nation, except for mining purposes. 
 A license to trade may and must be obtained from the National Council. A tax on 
 the value of goods offered for sale must be paid to the National Treasury. 
 
 IOWA By the general corporation law any number of persons may sign and 
 acknowledge articles of incorporation, which are to be recorded in the office of the 
 Recorder of Deeds in the County in which the principal place of business Is to be 
 located. A notice must be published for four weeks in a newpaper In the County. 
 The notice must contain the home of the company and its principal place of 
 business; the nature of the business; amount of capital stock authorized and 
 when it Is to be paid In; time of commencement and termination; names of 
 officers; highest amount of Indebtedness, and whether private property Is to be 
 exempt. The corporation exists as soon as the articles are filed with the Recorder. 
 
 Kansas Corporations are organized by five or more persons. If co-operative, 
 the number must be twenty or more. The method of organizing is by filing a 
 charter with the Secretary of State, giving the name of the company, object for 
 which It Is formed, place of business, number of directors, amount of capital stock, 
 number of shares, etc. 
 
 Kentucky Any number of persons may associate themselves for most any 
 kind of legal business. They must adopt articles of Uicorporatlon, which are to be 
 8lgne<l, acknowledged and recorded In the office of the County Clerk of the County 
 where the principal place of business Is to be located. The corporation Is then 
 ready for business. 
 
 Louisiana Three or more persons may organize under the general corporation 
 law, with a capital of not less than $6,000. The name of the company or associa- 
 tion must have the word " limited " as the last word of the name, otherwise all 
 the members are liable for the debts of the concern. The charter or statement of 
 association must contain certain facts as retiuired by statute. All charters must 
 be recorded In the mortgage office of the parish where the corporation is located. 
 
 Maine Three or more persons may associate themselves together for the pur- 
 pose of forming any lawful business, by written articles of agreement. The first 
 meeting is called by one of the subscribers, giving the others fourteen days notice, 
 or by publication. At this meeting they can organize as a corporation, adopt a 
 name, define the purposes, fix the amount of capital stock which shall not be less 
 than $1,000, elect officers and adopt by-laws. Before commencing business the 
 president, treasurer and a majority of the directors shall prepare a certificate 
 setting forth the required facts concerning the company, and shall sign and make 
 oath to it After the certificate has been examined by the Attorney General ana 
 
 22
 
 388 HOW TO COOPERATE. 
 
 certlfled by blm to be correct, it is recorded in tbe registry of deeds and a certified 
 copy filed in the office of the Secretary of State. The corporation exists from the 
 time of the filing in the office of the Secretary of State. 
 
 Maryland Corporations may be formed by five or more persons. Thy must 
 make, sign and acknowledge a certificate stating the name, which shall always 
 include the name of the City or County where it is formed; the names and 
 residence of the corporators, the kind of business to be transacted, the time of Its 
 proposed existence, not to exceed forty years; the articles and conditions under 
 which It is to be formed, amount of capital stock, place of business, number of 
 directors or trustees and the number of those who are to manage the business the 
 first year. This certificate is to be certified to by one of the Judges of County or 
 City where the corporation Is to be located and is then to be recorded. 
 
 Massachusetts Under the general law a corporation may be formed for the 
 purpose of co-operation In carrying on any trade or business, with a capital of not 
 less than one thousand nor more than one hundred thousand dollars. The word 
 " co-operative " shall be in the name. The association if formed by seven or more 
 persons associating themselves together by an agreement in writing, stating the 
 name, purpose, location, amount of capital stock, par value and number of shares. 
 The first meeting is called by one of the subscribers, notifying the others by a 
 written notice delivered or mailed to the others at least seven days before the 
 time of holding the meeting. At this meeting the corporation Is organized by the 
 election of clerk, adoption of by-laws and election of other officers as called for by 
 the by-laws. The directors choose the president The proceedings are certified 
 by the Commissioner of Corporations, but before the corporation can commence 
 doing business, the capital stock must be paid in in full, and a certificate of that 
 fact sworn to by the president, treasurer and a majority of the directors filed with 
 the Secretary of State. The capital can be Increased as required to the limit 
 named. The law provides that in co-operative associations no one person shall 
 hold shares more than one thousand dollars in amount at par value. No distribu- 
 tion of profits shall be made untU at least ten per cent of the net profits has been 
 appropriated for a contingent or sinking fund, untU there has accumulated a simi 
 equal to thirty per cent in excess of the capital stock. 
 
 Michigan Any seven or more persons may unite in a co-operative association 
 for the purpose of purchasing groceries, provisions and any other articles of 
 merchandise and selling the same to the stockholders and others at such reasonable 
 price over the cost thereof, as will enable the members to obtain such commodity 
 at the smallest practicable rate of cost, and also to manufacture articles and sell 
 them as aforesaid, for the purpose of raising produce and animals and for other 
 purposes. They may become incorporated by signing and acknowledging articles 
 of association stating the purpose for which it is formed, number of officers and 
 directors, names of those first agreed on, amount of capital stock and number of 
 shares, amount of capital paid in, names of the stockholders with residence and 
 number of shares taken by each; the name of the corporation, place where busi- 
 ness is to be transacted, the time and place of the annual meeting, etc. Before the 
 corporation can commence business the articles shall be filed in the office of the 
 Secretary of State and with the County Clerk. 
 
 M1NNE.SOTA Co-operative associations may be formed by seven or more persons. 
 The capital stock is limited to Ull.OOO. All that Is required by legal organization is 
 to make articles of association setting forth objects, place of business and amount 
 of capital stock. The by-laws are to be filed with the Clerk of the town where 
 located. 
 
 Mississippi- A proposed charter is to be drawn up and subscribed to the 
 Attorney General. If approved by him it is submitted to the Governor, and when 
 approved by him it is sealed with the State seal. The charter Is then recorded in 
 the office of the Secretary of State. 
 
 Missouri Articles of Incorporation are to be drawn up under the general 
 corporation law, setting forth the facts as to the proposed company. They must 
 be signed and acknowledged by the parties and recorded in the office of the 
 Secretary of State, who issues a certificate of incorporation. One-half of the
 
 THE LAWS BELATIVE TO COOPEBATIOK. S39 
 
 capital stock must be paid up before commencing. The corporation must be for 
 a definite number of years not exceeding fifty. 
 
 Montana Corporations may be formed by three or more persons. They must 
 make, sign and acknowledge a certificate setting forth the name, object, capital, 
 number of shares, term, not more than twenty years, place of business and the 
 names of the trustees first elected. This certificate is filed in the Kecorder's office, 
 and a duplicate recorded in the office of the Secretary of State. 
 
 Nkbraska Any number of persons may Incorporate. They adopt articles of 
 incorporation and have them recorded In the office of the County Clerk. Notice of 
 the Incorporation is to be published. The indebtedness of the company shall not 
 exceed two-thirds the amount of the capital stock. 
 
 Nevada Three or more persons may organize a corporation. They make, sign 
 and acknowledge a certificate irhicta shall state the name, object, amount of 
 capital stock, term of existence, not exceeding fifty years; number of shares, 
 number and names of trustees and principal place of business. The certificate is 
 to be filed in the office of the Coxmty Clerk. 
 
 New Hampshikk Corporations with a capital stock of from gll.OOO to f 10,000 by 
 five or more persons making written articles of agreement recorded in the Town 
 where the principal place of business Is to be transacted, and In the office of the 
 Secretary of State. 
 
 New Jersey Seven or more persons may form a Co-operative Company by 
 making and filing a certificate of their organization, stating name, amount of 
 capital stock, which shall not be less than gl.OOO nor more than g50,000: number 
 and par value of shares, names and residences of stockholders and niunber of shares 
 held by each, principal place of business, time of existence, which shall not be over 
 fifty years. The certificate is to be acknowledged and recorded in the office of 
 the County Clerk and a copy filed in the office of the Secretary of State. 
 
 New Mexico Substantially same as New Jersey, except that a copy of the 
 articles is to be filed with the Clerk of Probate Instead of County Clerk. 
 
 New York Any number of persons, not less than three, may form an Incorpora- 
 tion or company for the purpose of uniting their labor, capital or patronage on the 
 co-operative plan, by filing in the office of the Secretary of State a declaration 
 signed by the corporators, expressing their intentions to form such a company 
 together with a copy of the charter proposed to be acepted by them. Capital stock 
 must be at least gl.OOO; ten per cent must be paid In in cash. See Revised Statutes 
 of New York, page 1626. 
 
 Any number of persons, not less than three, may form a corporation for the 
 business of making butter, cheese, condensed milk or other products by the dairy, 
 and certain other purposes. They shall file in the office of the Clerk of the County 
 and a duplicate In the office of the Secretary of State, a certificate In which shall be 
 noted tlie name of the company, the business to be carried on and the amount of 
 capital stock, the time of existence of the company, not to exceed fifty; 
 iiaiiien of trustees, number of shares of stock, etc. The stock must be paid for 
 half within one year and the balance in two years. Revised Statutes of New York, 
 pak'R 1731. 
 
 North Caroi,jna Corporations may be formed by three or more persons 
 either with or without personal liability for debts, by filing and recording a plan 
 of lncon>oratlon in the office of the Clerk of Courts and of the Registrar of Deeds 
 for the County In which the principal place of business is to be transacted. 
 
 North Dakota Articles of Incorporation must be signed and acknowledged 
 by three or more persons and filed In the office of the Secretary of State. The 
 secretary must Issue to the corporation a certificate that the articles have been 80 
 filed and that they contain a statement of the necessary facts, which facts are 
 those usually reciulred In the State. 
 
 Ohio The following Is from the laws of Ohio: 
 
 An association lncon>orated for the puri)ose of purchasing, in quantity, grain 
 goods, groceries, fruit, vegetables, provisions, or any other articles of merchandise, 
 and distributing the same to consumers at the actual cost and expense of purchas- 
 ing, holding and distributing the same, may employ its capital and meanB In the
 
 340 HOW TO COOPERATE. 
 
 purchase of snch articles of merchandise as it deems best for the company, and 
 in the purcliase or lease of such real and personal estate, subject always to the 
 control of the stockholders, as may be necessary or convenient for purposes 
 connected with and pertaining to Its business, and may adopt such plan of 
 distribution of its purchases among the stockholders and others as it deems most 
 convenient, and best adapted to secure the ends proposed by the organization; and 
 any profits that may arise from the business of the company may be divided 
 among the stockholders from time to time, as It deems expedient. In proportion to 
 the several amounts of their respective purchases. 
 
 Such an association can be formed by five or more persons subscribing and 
 acknowledging articles of incorporation, and filing the same in the office of the 
 Secretary of State. 
 
 Oregon Tliree or more persons may organize a corporation by making and 
 acknowledging articles of association containing the usual statement of facts 
 concerning the proposed company. Three copies should be made, one to be filed 
 In the office of the Secretary of State, one with the County Clerk and one to be 
 retained by the company, 
 
 Pknnstlvaki A Corporations are incorporated by the governor. The Incorpora- 
 tors, not less than must sign and swear to a certificate containing the usual 
 
 facts concerning the corporation, before the Recorder of the County where the 
 principal place of business is to be located. The certificate is to be filed with the 
 Secretary of State and advertised for tliree weeks. 
 
 Khode Island Corporations must be chartered by the General Assembly on 
 petition to the Assembly. 
 
 South Carolina- Applicants for incorporation must file with the Secretary of 
 State a written petition, signed by themselves individually, which must set forth: 
 First: The names and residences of the petitioners; second, the name of the 
 proposed corporation, the place at which it proposes to have its principal or only 
 place of business, the general purpose of the corporation and the nature of the 
 business which it proposes to do; third the amount of capital stock, which must be 
 specifically stated and not put in tlie alternative, the number of shares into which 
 the capital stock is to be divided and the par value of each share ; fourth, any 
 other matter which it may be desirable to set forth in the organic law. 
 
 Upon the filing of such a petition, the Secretaryof State will issue to two or more 
 of the petitioners a commission constituting them a board of corporators, giving 
 them authority to open books of subscription to the capital stock of the proposed 
 company, and requiring them to give notice of the times and places of the opening 
 of the books of subscription. Before a charter can be granted fifty per cent of the 
 capital stock must be subscribed. When this is done the board of corporators must 
 call the subscribers together by electing a board of directors, etc. 
 
 South Dakota Same as North Dakota. 
 
 Tennessee Five or more persons may apply to be organized as a corporation. 
 The application is to be made in the form prescribed by the code, accompanied by 
 a charter. The papers are to be signed and acknowledged before the County 
 Court and recorded In the Register's office. All the papers are then to be registered 
 In the office of the Secretary of State, who certifies the fact under the seal of the 
 State. 
 
 Texas In this State a charter is to be drawn up showing the name, place 
 of business, object, number and names of directors, amount of capital stock, etc., of 
 the proposed corporation. The charter is to be signed and acknowledged by three 
 or more persons, and recorded in the office of the Secretary of State. A copy of 
 the charter under the seal of the State is evidence of the incorporation. 
 
 Utah Five or more persons may organize as a corporation under general laws. 
 The incorporators sign a written agreement which must be acknowledged by three 
 of them before the Judge of Probate, stating name, place and kind of business 
 amount of capital stock, value of each share, the limit of stock agreed upon, 
 number and kind of officers, with term of service and manner of election ; also 
 whether or not the stockholders are to be individually liable, with any other facts 
 desired In the charter. To this is added the oath of tliree or more of the corpor*-
 
 THE LAWS KELATIVE TO COOPERATION. 341 
 
 tors that It Is their intention to carry on said business and that the signers have 
 paid or will pay the amount of subscribed capital. The agreement Is to be filed in 
 the office of the Probate Clerk and there recorded. The elected officers will then 
 take their oath of office. The Probate Clerk then Issues a certificate of all the facts 
 and copies of all the papers whlcli Is to be filed in the office of the Secretary of 
 the Territory. A certificate of the Secretary, of the filing of the above papers 
 constitutes the organizers as a corporation. 
 
 Vermont A corporation can be organized by three or more persons uniting by 
 articles of association. The articles should be substantioUy as follows: 
 "We, the subscribers, hereby associate ourselves togeiher as a corporation 
 
 under the laws of the State of Vermont, to be known by the name of for 
 
 the purpose of at in the County of in said State, with a capital stock 
 
 of divided into shares of dollars each." The articles signed by the 
 
 corporators are to be transmitted to the Secretry of State. The Secretary is to 
 record the same and a certified copy of the record has the effect of a special 
 charter. Before the company commences business It shall publish the charter at 
 length in some newsi aper. 
 
 Virginia Corporations may be obtained for most any lawful purpose by 
 application to the Courts. The Judges have the power to issue charters either at 
 term time or in vacation. 
 
 Washington Two or more persons may organize a corporation by executing 
 three copies of articles of incorporation, stating the name, object, place of busi- 
 ness, cai>ital stock, manner of electing officers, etc. The articles are to be 
 acknowledged and filed, one hi the office of the Secretary of State, one In the 
 County Auditor's office and one to be kept by the corporation. 
 
 West Virginia Joint stock companies are organized by an agreement to form 
 a corporation executed and acknowledged by five or more persons. Affidavits of 
 two or more of the corjiorators must be made, stating tliat ten per cent of the 
 subscribed capital has l)een paid hi. The agreement with the acknowledgements 
 and affidavits is to be delivered to the Secretary of State, who will Issue a 
 certificate of Incorporation. 
 
 Wisconsin- Corporations are organized by three or more citizens of Wisconsin, 
 making and acknowledging a written declaration that they associate themselves 
 under the Statutes for the purpose. The declaration should contain a statement 
 of the tiame, location, object, number of shares, par value, duties of officers, number 
 of directors, and other provisions and by-laws not Inconsistent with law. The 
 articles are to be filed with the Secretary of State, and recorded In the registry of 
 deeds. 
 
 Wyoming Three persons or more may organize a corporation under the laws of 
 the Territory. The corporators make, sign and acknowledge duplicate certificates 
 stating name, place of business, capital stock, purpose of the corporation, aNo the 
 term of existence, not to exceed fifty years, names of first officers, etc. One of 
 the certificates Is to be filed In the office of the County Clerk and one In the office 
 of the Secretary of the Territory. 
 
 The English Law The Industrial and Provident society (Act of 1878, 39 and 
 40 Victoria, Chapter 45) Is a model law for the incorporation and management 
 of co-operative societies, at least under English conditions. It has been published 
 with notes by the Central Co-operative Board, Manchester, England, and maybe 
 olitained by those interested in securing better legislation for co-operators in this 
 country by sending 50c to the above a<Idres8. After certain definitions the law 
 provides that the Industrial and Provident, or co-operative societies may be 
 registered under its provisions for carrying on any labor, trade or handicraft, 
 whether wholesale or retail. Including the buying and selling of land. No member 
 other than a registered society shall hold an Interest exceeding fflOOO, and such 
 member shall have but one vote. No society can be registered unless It has at 
 least seven members and a name distinct from that of any existing society, 
 the word " limited " being the last word in the name of every society. If any 
 registrar refuse to register a society or its rules, appeal Is provided for. Tlic 
 society's rules must conform to the law, and any ameudinent must also tf
 
 342 HOW TO COOPEKATE. 
 
 reiilstered. Section 10 compels every society to have a registered office to which 
 all commuulcatlons and notices may be addressed; to have its name conspicuously 
 affixed to every place of Its business; to have Its accounts audited at lease once a 
 year, cither by a public auditor provided for In the law, or by one or more persons 
 appointed by the society; to send to the registrar an annual statement of the 
 receipts and expenditures, funds and effects, with auditor's certificate; to allow 
 members to Inspect the books, supplying each gratuitously with a copy of the 
 annual return, and post Its last balance sheet in a prominent place. Such societies 
 may take deposits of not less than gl.25 In any one payment, nor more than glOO 
 for any one depositor, payable on not less than two clear days' notice; but such 
 societies shall make no payment of withdrawable capital while any claim due on 
 accoimt of deposits is unsatisfied. As to banking operations on a larger scale, the 
 rules provide that no society which has any withdrawable share capital shall carry 
 on the business of banking, and every society which conducts such business shall 
 conspicuously post a semi-annual statement of its condition in a prescribed form. 
 It is an offense to violate any provisions of the law, for which every officer of the 
 society is held responsible, under heavy penalties. The re^'istry of societies is 
 equivalent to incorporation, and its documents must be recorded. Registry binds 
 the society and all its members to its rules as though each member had subscribed 
 his name and affixed his seal thereto. Money due from members is a debt recover- 
 able from them. The society is exempt from income tax. Payments of deceased 
 members' Interest are provided for, and the rights of minors as members are 
 guarded. The rules must provide for a register of members and shares, for the 
 carrying out of contracts, holding property, advancing money to members or 
 making Investments, the application of profits, discharge of mortgages, etc. Fraud 
 or misappropriation of a societj''s property or name is heavily punished, and officers 
 In receipt or charge ot money must give bonds and render accounts. Disputes 
 may be referred to justices. Members may appeal to registrars for an Inspection 
 of the society. The law also defines special resolutions of societies and the pro- 
 ceedings which may be taken thereon, also for the dissolution of societies. It also 
 regulates the proceedings or the duties of registrars under the act. 
 
 The rules of the Rochdale Society, printed In full In this Appendix, cover all the 
 points In the English law.
 
 The Bibliography of Co-operation. 
 
 A LIST OF BOOKS ON COOPERATION" AND ALLIED TOPICS, 
 INCLUDING PAMPHLETS AND LEAFLETS. 
 
 Any of the following marked with an asterisk (*) may be obtained from the 
 
 Orange Judd Co., 52 lafayette Place, New York, N. Y., postpaid on receipt of 
 
 price. The others are either out of print or may be had of the address given in the 
 
 notice. 
 
 THE HISTORY OF CO-OPERATION in England; Its literature and its advocates. 
 By George Jacob Holyoake. Vol. 1, 6x71/2 Inches, 420 pages, describing the 
 pioneer period from 1812 to 1844. Published by Trubner & Co., London, in 
 1875. Vol. 2, The Constructive Period, 1845 to 1878; 8x5 Inches, 502 pp; 
 Trubner & Co., 1878. These two volumes cover the whole ground of co-opera- 
 tive effort in Great Britain down to 1878. It Is Invaluable to any student of 
 the subject, and Is commended to all who would master the principles of 
 co-operation. The now venerable author is not only the accredited historian 
 of the movement In England but for 50 years its advocate and for much of 
 the time its chief writer. Price 85.00 
 
 WORKING MEN CO-OPERATORS: What they have done and what they are 
 doing. An account of the artisans' co-operative movement in Great Britain, 
 with information how to promote it. By Arthur H. Dyke Acland & Benjamin 
 Jones. Pp. 136, 4V2X6 Inches; London, 1884; Cassell & Co. This Is a short, 
 simple account of English co-operation, Its aims, its work, its principles the 
 best and most complete concise manual of English co-operation. 
 Price, Paper 25c, Cloth 50c. 
 
 THE HISTORY OF CO-OPERATION IN THE tTNITED STATES. This la 
 Volume 6 in the Johns Hopkins University studies In Historical and Political 
 Science. Herbert B. Adams, Editor. It comprises six parts Co-operation In 
 New England, by Edward W. Berals; Co-operation in the Middle States, by 
 Edward W. Bemis; Co-operation in the Northwest, by Albert Shaw; Three 
 Phases of Co-operation in the West, by Amos G. Warner; Co-operation on 
 the Pacific Coast, by Charles Howard Shlnn; Co-operation in Maryland and 
 the South, by Daniel R. RandaU. Pp. 540, 58/4x9Vi: hiches; Baltimore, 1888, 
 N. Muriay. Price *SS.60 
 
 TOE, HISTORY OF CO-OPERATION IN ROCHDALE. Part 1, from 1844 to 
 1857; Part 2, 1857 to 1877. In this book George Jacob Holyoake gives a 
 clear though rambling account of the humble beginnings, early struggles and 
 marvellous developments of the Rochdale Equitable Pioneers, the originators 
 of the Rochdale system of co-operation. In one volume, 6x7 V2 Inches In size, 
 pp. 168. London, Trubner & Co. 1867 to 1878. Price, 'f 1.60 
 
 PROFIT SHARING BETWEEN EMPLOYER AND EMPLOYE. By N. P. Oilman. 
 With an introduction on the Industrial Problem. This book treats first on 
 product sharing and the wages system In Its various forms, then Introduces 
 the father of profit sharing (Leclaire), describes the growth of his house to 
 date, the spread of profit sharing in various industries, then in agricultural 
 transportation and distribution, industrial partnerNhlps and profit sharing in 
 England and America, history and analysis of experience in profit sharing, 
 winding up with an argument in favor of the system. Pp. 460, 6x8 Inches. 
 Boston and New York, Houghton, Mifflin & Co. Price J1.76 
 
 A MANUAL OF CO-OPERATIVE DISTRIBUTION in Great BrlUln. Prepared 
 in accordance with a resolution of Massachusetts Legislature In 1886, by 
 Carroll D. Wright, Chief of the Massachusetts Bureau of Statistics of Labor, 
 published by the Bureau of Labor, Boston; 110 pp., 6%x9 Inches. This can 
 be obtained free by sending a few postage stamps to the above address. 
 
 A TREATISE ON CO-OPERATIVE SAVINGS AND LOAN ASSOCIATIONS, 
 
 343
 
 344 HOW TO COdPBBATB. 
 
 incladlnft building and loan associations, mutual savings and loan associations, 
 accuinulatiiig fund associations, co-operative banks, etc., with Appendix 
 containing laws, precedents and forms, by Seymour Dexter. New York, 
 D. Appleton & Co., 1889, pp. 300, 5x714 inches This is the most complete 
 practical manual on this special branch of co-operative effort, and we heartily 
 commend it. Price gl.25 
 
 A MANUAL FOR CO-OPERATORS. Edited by Thomas Hughes andK V. Neale, 
 general secretary of the Co-operative Union. Published for the Central 
 Co-operative Board, City Buildings, Corporation street, Manchester; 1888; 
 Pp. 266. This manual prepared at the request of the Co-operative Congress 
 held at Gloucester, England, in 1878, and revised in 1888, is a standard 
 authority in England. It treats of the moral basis of co-operation and its 
 relations to religious faith, other philanthropical movements, socialism, 
 communism and polito-social effort. It then treats of the economical basis 
 of co-operation and its relations to competition, current economic theories and 
 the State. The practice of co-operation in distribution, production, social 
 life and as respects the law is considered, also the helps and hindrances to 
 co-operation and the dangers to be guarded against. 
 
 A MANUAL FOR BUILDING AND LOAN ASSOCIATIONS. By Henry 8. 
 Rosenthal. This manual embraces the origin and history of co-operative 
 societies, objects and benefits of building associations, plans and methods of 
 organizing and conducting them, legislation, constitution and by-laws, forms 
 and descriptions of books, blanks and papers, interest and dividend tables, and 
 a comprehensive variety of practical and useful information and suggestions. 
 Pp. 256, 7x9 inches. Cincinnati, S. Rosenthal & Co., 1888. This edition is 
 exhausted. The second edition, of 1891, will treat in addition to the fore- 
 going the subjects of auditing, serial plan and national plan. Price *i?1.60 
 
 THE CO-OPERATIVE MOVEMENT OF TO-DAY. The object of this book is to 
 explain the nature, growth and extent of co-operation in England to outsiders. 
 By George Jacob Holyoake, 1891. Methuen & Co., Publishers, 18 Bury 
 street, London, W. C. 5x71/4, pp. 198. Price *gll.00 
 
 THE CO-OPERATIVE MOVEMENT IN GREAT BRITAIN. By Beatrice Potter. 
 London ; Swan Sonnenschien & Co., 1891. Price, 2s. 6d. 
 
 CO-OPERATION AS A BUSINESS. By Charles Barnard. New York, G. P. 
 Putnam's Sons, 27 and 29 West 23d street. 1881. 7x5 Inches; 234 pp. A 
 useful little book, but unfortunately out of print and will not be reprinted. 
 
 THE ANNUAL OF CO-OPERATIVE WHOLESALE SOCIETIES, 1891, gives a 
 splendid insight into the enormous business done by the English Wholesale 
 and also by the Scottish Wholesale (see Page 30). Pp. 546, 5l/2x83^ inches. 
 It is published annually by the Co-operative Wholesale Society, Limited, of 
 Manchester, England. The edition is small and the price 2s 6d per copy, with 
 lOd added for postage, making it cost 3s 4d postpaid, or about 80c. The 
 duty payable at the sender's local postoffice in this country will be about 20c. 
 
 THE REPORTS OF THE CO-OPERATIVE CONGRESS cover in detail the 
 proceedings at the Annual Co-operative Congresses of England, Scotland, 
 Ireland and Wales. They give not only the papers and discussions in full but 
 also the official returns from each of the co-operative societies in these 
 countries for the preceding year, and are full of very valuable Information, 
 even to co-operators in this country. These reports are published by the 
 Co-operative Union Limited, 14 City Buildings, Corporation street, Man- 
 chester, England. The edition is limited each year, but a copy could 
 probably be obtained from the above address for 4s postpaid, $1. 
 
 THE PEOPLE'S BANKS OF GERMANY are quite fully described in Richard T. 
 Ely's article in the Atlantic Monthly for Februarj-, 1881. More exact and 
 definite rules and regulations are published in the German language by the 
 originator of the system, Schulze-Delltzsch. His book and the annual reports 
 of the central association of these banks are sold for a reasonable price and
 
 THE BIBLIOGRAPHY OF COOPERATION". 345 
 
 can be obtained from any German bookseller, among others Mayer & MuUer, 
 61 Franzosische street, Berlin, Germany. 
 
 AGRICULTURAL CREDIT IN GERMANY. By Emmanuel Le Barbler, is a very 
 fuU treatise on the various systems of co-operative banking in vogue among 
 German farmers. It is printed only in French, with the title "Le Credit 
 Agricole en Allemagne," and was published by Berger, Leverault & Company, 
 No. 5 Rue des Beaux- Arts, Paris, in 1890. Fortunately, however, the por- 
 tions of the work of most practical interest in America are intelligently 
 summarized in Reports No. 83, No. 86 and No. 87 of the Statistics of the 
 United States Department of Agriculture at Washington, for April, July 
 and August respectively. No. 83 describes Rural Co-operative Banks; No. 
 86, The People's Banks of Germany; No. 87, The Raiffeisen Loan Associations 
 of Germany, a form of agricultural banks. As long as the supply lasts, 
 Interested citizens can obtain these reports free by applying to Secretary of 
 Agriculture, Washington, D. 0. 
 
 PAPERS AND TRACTS. " The Sociologic and Co-operative News " is the rather 
 nnlnviting title of a eight-page sheet published at York Harbor, Me., by Mrs. 
 I. C. Fales, secretary of the Sociologic Society ; price 50c a year. Mrs. Fales 
 also furnishes the English Co-operative News at ;5!2.25 per year, together with 
 the following English pamphlets or tracts: A manual on systems of checks, 
 compiled for co-operative societies, by the Central (English) co-operative 
 board, 25c; What Is meant by Co-operation, by Benjamin Jones, 5c; The 
 Growth of Co-operation In England, by G. J. Holyoake, 10c; Co-operative 
 Production In Great Britain, by J. C. Gray, 5c; Outline of Lessons on Co-oper- 
 ation, 10c; A Co-operative Village and How to Conduct it, 5c ; Association 
 Farming, 6c; The Story of the Form&tion of the Hlbden Bridge Fustian 
 Manufacturing Society, 5c; The Organization of Labor (from Holyoake's 
 History of Co-operation), 10c; Equitable Co-operative Principles (The 
 Religion of the Future), 25c. Secretary Fales also furnishes the following 
 tracts of the American Sociological Society at 3c each, or 25c per dozen: 
 Sociologic Principles, The New Civilization, Social Evolution, The Industrial 
 Condition of the United States, The Lower and Higher Laws of Nature, The 
 Philosophy of Co-operation, Religious and Social Changes, The Birth and 
 Growth of the Rochdale System of Co-operation, Five Reasons Why I Am a 
 Co-operator, The Lower Law of Competition and the Higher Law of Co-oper- 
 ation, The Relation of Competition to Co-operation, How to Form a Co-opera- 
 tive Society, The Principle of Co-operation, Model Rules for Forming a 
 Co-operative Society, Oiir Position as Sociologists Defined, What to Do Now, 
 Dividend What it Is and How it Is Made, Political Co-operation, Studies for 
 Beginners in Co-operation (Part 1 The Store, Part 2 How to Create Capital), 
 The Sociologic Society Its History, Principles and Work. 
 
 THE BUILDING AND LOAN ASSOCIATIONS have several journals devoted to 
 this form of co-operative banking. These Include : " Building Association 
 and Home Journal," Philadelphia, Pa.; Michael J. Brown, 629 Commercial 
 street; established 1869; gl.OO. Ita special quadruple number In December, 
 1889, is a complete manual of the practical work of building associations, 
 which we most highly commend. "Building and Loan News," New York 
 City; Monthly, 16 pp., Sl.OO, established 1886; B. & L. News Co., 54 Beek- 
 man street. "National Building and Loan Herald," MinneaiKtlis, Minn; 
 Monthly, 18 pp., i?1.00, established 1889; B. <fc L. Publishing Co. We regard 
 the "Nationals" as something to be avoided. "Our Homes," New York 
 City; Monthly, 12 pp., 50c; established 1888; Wm. H. Randall, 28 Center 
 street. "Worker and Shareholder," Palmyra, N. Y; Monthly, 4 pp., 50c, 
 established 1889; F. G. Crandall. "Co-operative News," Cincinnati, O; 
 Monthly, 12 pp., gll.OO, established 1890; S. Rosenthal & Co., 203 Vine 
 Street. Also publish books, blanks, etc., used by corporative l)anks. " Co-op- 
 erative Building and Loan Association Bulletin," San Francisco, Cal; 
 Monthly, 8 pp., Jl.OO, established 1889; John O. Leibert, 410 Sansomo 
 Street. " American Building A.ssorlation News," Chicago, 111; Monthly, iii) 
 pp., ifl.OO, established 1883; A. Coddington, 156 Washington street
 
 INDEX, 
 
 [The Abbreviation C stands for Co-operation or Co-operative.] 
 
 Adaptation of C, tlie generallO, 35, 36. 
 
 AdvantaKes of C, 20, 21, 22. 
 
 Advertisements, end of book. 
 
 ARencv, the C, 7. 
 
 Allecran, Mich., C. Store, the 105-114, 
 274-277 : A. Stegeinan, 105, 109, 112, 
 A stift' back bone needed, 110; a sub- 
 stantial success, 105 ; by-laws of, 274- 
 277; comparison with the Rochdale 
 plan, 113; its weakness, 114: just how 
 the store is managed, 110; lessons of 
 its success, 109 ; light expenses ex- 
 plained, 107; money on deposit, 100; 
 not the Rochdale system, 106; one 
 useful lesson, 112; profits, 106; rec- 
 ords summarized, 107; some strong 
 pointsof success, 111; tried by fire, 107. 
 
 American Live Stock Commission Com- 
 pany, 222-227 : by-laws, 223 ; commis- 
 sions, 224; details of shipments, 223; 
 divisions as to membership, 225: ex- 
 pelled from the Chicago live stock ex- 
 change, 224; its headquarters and 
 branches, 223; its unparallelec' suc- 
 cess, 226; men who make this success, 
 226; opposition to, 224; progress, bus- 
 
 Author's note to reader, 4. 
 
 Bank, how to start a C, 184. 
 
 Banking, C, 10, 178-206, 330-332: ad- 
 dresses of C. banks, 330-332 ; a strong 
 point in favor of, 183; avowed pur- 
 pose of these associations, 180; con- 
 trasted with the savings bank, 180, 
 181; Dr. Schulze-Delitsch, 201, 202, 
 204; economy of, 181; Ely, Prof. Rich- 
 ard T., 200; extent of system in Ger- 
 many, 201 ; German C. credit ruinous, 
 200. 201, 202, 204; Grangers' bank of 
 California, 192-198; how the new sys- 
 tem operates, 180 ; how to start a bank, 
 184; its management by depositors, 
 180; model by-laws of the Berean B. 
 & L. A. of PhUadelphia, 185-192; na- 
 tional association not hidor^ed, 182; 
 Patrons' C. bank of Olathe, Kan., 198; 
 people's banks or credit imions, 198- 
 206; possibilities of C. savings, 179; 
 some noteworthy examples, 178; suc- 
 cess of, 178; vs. pawn shops and pri- 
 vat brokers, 201; warehouse system 
 in Russia, 196; workers benefited by 
 their savings, 184. 
 
 iiiess and profltJ, 224; shares and prof- i Banking features of a 0. society, the, 
 
 its 222. 
 
 Angell, Thomas H., 86, 88, 96, 100. 
 
 Appendix, 254. 
 
 Arlington C. store, the, 37-78: allow- 
 ance for depreciation, 47; announce- 
 ments, 70; auditing the accounts, 65; 
 a useful hint, 126; banking features, 
 52: blank application for member- 
 ship, 59; blank form of receipt, Gl; 
 by-laws, 40-46; cash registering ma- 
 chine, 60; Charles Watnwrlght, Sii; 
 clerk's statement, 72; comment on 
 clerk's statement, 73; directors mcet^ 
 ings, 62; educational ffid, 48; fre- 
 quency of meetings, 51; general regu- 
 lations, 52; George Dewhirst, 74, 78; 
 George Hartley, 65 ; growth of the as- 
 sociation, 55; how it started, 37-40; 
 how the Arlington has grown, 76; how 
 the store is run, 57; how to become 
 a member, 58-70; its motto, 9; James 
 A. Coghlln, 57; officers, 49; other 
 points, 49; President Speed, 62, 70; 
 quarterly meeting, 76; quarterly state- 
 ment, 68; records of a<lvisory commits 
 tee, 63; sinking fund, 46: summary 
 book, 66; taking stock, 64: trading 
 with other stores, 75; value of by-laws, 
 54; weakest n<)lnt in the Arlington, 76; 
 William D. Hartshorue, 38; William 
 Whitman, 38 ; work of the directors,50. 
 
 Auditing accounts, 65. 
 
 Author's acknowledgment, 6. 
 
 52, 181. 
 
 Beet sugar factories, 128. 
 
 Benefits of C. open to all, the 18. 
 
 Bibliography, 343-346. 
 
 Brook farm, 32. 
 
 Building and loan associations, 178-192. 
 
 Business and profit of C. societies, 27. 
 
 By-laws, the value of, 54. 
 
 By-laws for a C. bank, 185-192; cheese 
 factory,. 155; creamery, 160; factory, 
 234; productive association, 139; soci- 
 ety (modeled after the Rochdale Pio- 
 neers), 257-273; of successful Ameri- 
 can societies, 2 > 4-305. 
 
 California Fruit Union, the, 215-221, 
 293-298: agents' commissions, 219; 
 benefits of a contract, 219; bj'-laws, 
 293-298 ; collection of claims for losses 
 against railroads, 219; copy of con- 
 tract between union and selling agen- 
 cies, 217 ; division of profits, 220; great 
 success of the effort, 220; how bene- 
 fits are paid for, 219 ; how the business 
 is conducted. 217 ; how the shares 
 were subscribed for, 215; main thing 
 to regret, 221; manager's salary and 
 expenses, how met, 215; organization 
 of Dranch unions, 215; securing a bet- 
 ter system f marketing, 215; state- 
 ment for 1890, 221. 
 
 Cash, Eneas, 89, 96. 
 
 Cash registering machine, the, 60. 
 
 346
 
 INDEX. 
 
 347 
 
 Cattle marketini?, C, 221-227: how to 
 beat the packers' combine, 221; the 
 American live stock commission com- 
 pany, 222-227. 
 Centi-alizatlon of capital, how prevent- 
 ed, 49. 
 
 Cheese factory, the C, 153-156: extent 
 of the system, 153; regulations for a 
 cheese factory, 155; two general sys- 
 tems, 153 ; where run under contract, 
 154; wherein like the C. creamery, 
 155. 
 
 Chicago milk shippers' association, the, 
 168. 
 
 Clerk of the C. store, the, 49. 
 
 Commercial morality, a new means of, 
 16. 
 
 Common idea, the, 23, 
 
 Competition vs. C, 8, 11. 
 
 Congress, a C, 252. 
 
 Conrad, Prof. 199. 
 
 Corporation, the C, 19. 
 
 Contents, table of, 5. 
 
 Creamery, the associated, 145-153: a 
 great saving effected, 145; a practical 
 success, 146; benefits, 145; C. cream- 
 eries in N. K, 146; creameries in tlie 
 South and West, 147; creamery vs. 
 dairy butter, 146; how it is managed, 
 147: its practicability, 146; Michigan 
 method, 148; model by-laws and rules, 
 150; reasons for failure, 147. 
 
 Credit, the perils of, 16, 17. 
 
 Credit, the proper use of, 198. 
 
 Credit unions (see People's banks). 
 
 Dairyhig. C, 143-158, 328-330: address- 
 es of C. creameries, 328-330; ad- 
 journed meethiK, 144 ; appointing com- 
 mittees, 144; best way to proceed, 
 144; just what it is, 143: legal perfec- 
 tion eiii|ihasizcd, 144; location, how 
 di'cMid, 144; profits of, 143; spread 
 of tlK? <-r<-amery system, 143; the as- 
 sociated creauierv, 145-153; the first 
 neces.slty, 143 ; what to avoid, 145. 
 
 Delaware fruit exchange, the, 211-215, 
 a<lvantages, 213; how It is operated, 
 213 ; liow its defects could liave been 
 guarded against, 214; principal reason 
 for its lack of progi-ess, 214; weak 
 points, 214; why organized, 211. 
 
 Destiny of C, the, 253. 
 
 Dewhirst, George, 74, 78. 
 
 Directors, inisiness of, 60. 
 
 Directory of C. enterprises, 311-333. 
 
 Distribution, C, 10, 32-126. 
 
 Dividends on purchases, 25, 77. 
 
 Early period, the, 23. 
 
 Economy of well used credit, 200. 
 
 Education of ('., 10,14. 
 
 Education required, 13. 
 
 Educational fund, 48. 
 
 Essential points In C, 80. 
 
 Exrliange, C. 14. 
 
 Exchanges, farmers' (see Farmers' and 
 People's exchanges). 
 
 Failure, an Instructive, 78. 
 
 Failure, causes of, 81, 132, 137, 147, 170. 
 
 Failures, C, 18, 23, 32, 34, 50, 78, 81, 
 147, 170. 
 
 Failures, productive, 137. 
 
 "Fake" enterprl.ses, 19. 
 
 Farm atui town mutual Insurance com- 
 panies, 160-177 : average cost for each 
 ll.OOO insurance, 163, 165; careful In- 
 spection necessary. 169 ; cr)st and sav- 
 ings in the Michigan mutuals, 166; 
 general principle of all these nmtuals, 
 
 161; how to organize, 174; life insur- 
 ance, 177; live stock insurance, 177; 
 Michigan farm nmtuals, 165; Michi- 
 gan model code of laws, 161; mistakes 
 of co-operators, 169; necessity of con- 
 fidence, 175; object, 160; officers and 
 meetings, 176; Pennsylvania the first 
 State to adopt the plan, 160; perils of 
 C. insurance, 167 ; progress of the sys- 
 tem, 163, 164; savings of C. insurance, 
 166; soiiie conspicuous facts, 167; suc- 
 cess in Massachusetts and Connecticut, 
 161; successful and unsuccessful ex- 
 periences, 170-174; system In other 
 States, 160; system practiced by com- 
 munity sects, 161; unbusinesslike 
 management, 170; where the system 
 is unlawful or unknown, 160-161. 
 
 Farmers' Alliance exchanges, 324. 
 
 Farmers' Alliance exchange of Texas, 
 the, 34, 207. 
 
 Farmers* Alliance, the, 18, 34, 207. 
 
 Farmers' and People's Exchanges, 207- 
 240: California Fruit Union, 215-221; 
 C. cattle marketing, 221-227: Dela- 
 ware Fi-uit Exchange, 211-215; good 
 accomplished Ijy the old grange sys- 
 tem, 207; Hamnionton (N. J.) Fruit 
 Growers' Union, 227-240; Kansas Alli- 
 ance exchange, 208-211; system adopt- 
 ed by Farmers' alliance exchanges, 
 207; the people's exchange, 240; their 
 purpose and success, 207. 
 
 Farmers' movement, the, 8. 
 
 Farmers' organizations, 7. 
 
 Farming, C, 127. 
 
 Fire Insurance, C, 159-177,304-310,325- 
 328 : constitution and by-laws, 304-310; 
 contrasted with old line stock compa- 
 nies, 159; farm an<l town mutual in- 
 surance companies, 160-177; helpful 
 hints, 325; names and addres.so,s of 
 mutual fire Insurance companies, 325- 
 328 
 
 Florists, C. among, 321. 
 
 Frauds, C, 19. 
 
 Furniture workers co-operators,l33-lJ,7. 
 
 Future of C, the, 252-254: advisability 
 of a right start, 252; Immediate work, 
 252; its star In the ascendancy, 254; 
 nationalism and socialism, 2.''i2; ob- 
 taining of proper legislation, 253; pro- 
 IK)sed C. congress, 252. 
 
 Grangers' bank of California, the, 192- 
 198,301-304: by-laws, 301-304; direct 
 loan to farnurs, 193; extent of the 
 bu.slness, 197; government aid vs. self- 
 help, 195; how It has i)rogrcssed, 192; 
 how the business is done, 196; jirincl- 
 pal business, 194; trifling lo8.ses In- 
 curred, 194. 
 
 Hamnionton, N. .T., Fruit Growers' Un- 
 ion, the, 227-240, 290, 292: a compar- 
 ative statement, 232; annuul state- 
 ment, 233; a typical farmers' ex- 
 change, 227; bookkeeper and cashier, 
 236; buildings and e<|uipment, 230; 
 certificate of association, 229; credit 
 sales, 232; flally bulletin, 237, 238; 
 evolutlcm of this society, 227; explan- 
 atory notes, 232; good iiolnt-.-. 240; 
 how the ('. store was started, 227; lis 
 growth, 230, 231; lessons of It all. 239; 
 men at the hea<l of the enterprise, 239; 
 new arrangement with commission 
 merchants, 227; opimslflon t<i, 236; 
 other weak points, 240; profits aiio 
 dividends, 230; rules and by-laws, 290-
 
 348 
 
 HOW TO COOPERATE 
 
 292; satisfaction of members, 237; 
 shareholders and capital, 229; shli)- 
 plng department, 237 ; store and ship- 
 ping accounts, 232, 233; store man- 
 aitement, 234; the first union In 1867, 
 227 ; the new store, 231 ; trial balance 
 book, 236; weakest point in the whole 
 affaU-, 240. 
 
 Harlem (N. Y.), women's exchange, the, 
 250, 251. 
 
 Hartley, George, 65. 
 
 History of C, the, 23-36. 
 
 Honesty required In C. effort, 16. 
 
 How to start a C. store, 125. 
 
 Illustrations, list of, 6. 
 
 Individuality of belief, how maintained, 
 15. 
 
 " Industry, the Peace of," 22. 
 
 Insurance, C, 10, 163-177: careful in- 
 spection necessary, 169; how to organ- 
 ize, 174-177 ; mistakes of co-operators, 
 169; j)erlls, 167; progress, 163; sav- 
 ings, 163 ; successful and unsuccessful 
 experiences, 170-174; unbusinesslike 
 management, 170. 
 
 Insurance, comparative cost of C. and 
 stock, 163, 165. 
 
 Inventory, the taking of an, 64. 
 
 Johnson County C. store at Olathe, Kan., 
 114-120, 277-282: a notable success, 
 114; branch stores, 116; by-laws and 
 rules, 277-282; building and trade, 
 116; dividends paid to purchasers, 
 118; employes, 120; H. C. Llvermore, 
 114, 120; how the farmers have pros- 
 pered, 118; Increasing the wealth of 
 the State, 118; profits, 117; progress 
 of the concern, 115; Rochdale plan 
 followed. 115; summary of reports, 
 117 W. H. Toothaker, 114. 
 
 Joint stock vs. C, 12, 52. 
 
 Kansas Alliance Exchange company, 
 the, 208-211, 298-301 : business run by 
 the farmers, 210; capital and member- 
 ship, 208: cash advances on grain, 210; 
 constitution and by-laws, 298-301 ; di- 
 rectors of the exchange, 210; division 
 of profits, 208; how the business is 
 managed, 209; how the trading is 
 done, 208; improved freight rates, 
 how secured, 210; line of goods car- 
 ried, 209; other sales (than binding 
 twine) made on commission, 209; pros- 
 
 Eectlve enlargement, 209; sales of 
 inding twine in 1891, 209; storing 
 grain in elevators, 210; strong point 
 made of economy, 209; warehouse re- 
 ceipt and advances thereon, 210. 
 
 Knights of Labor, 18. 
 
 Lat)or associations, 7. 
 
 Labor the foundation of C. success, 16. 
 
 Laws regarding C. organization, the, 18, 
 20, 46, 334-342. 
 
 Life insurance, 177. 
 
 Lisbon Falls (Me.) C. store, 312-314. 
 
 Llvermore, H. C, 114, 120. 
 
 Live stock Insurance, 177. 
 
 Loans and their i)rlvilege8, 204. 
 
 Lyons C. store, the, 83-97, 282-287: addl- 
 tions made, 87 ; building purchased,86; 
 by-laws, 282-287; cash payments, 88; 
 Charles H. Henle, 97; Eneas Cash, 89, 
 96, 139; further Insight, 03; Henry 
 Maass, 97; how It started, 84; Its his- 
 tory, 83 ; J. G. Lolllck, 96 ; kind of men, 
 96; opposition provoked, 86; 8. A. 
 Sleight, 96; secretary's report, 89; 
 shareholder's certificate, 136; strong 
 
 points of Its success, 88: Thomas H. 
 Angell, 86, 88, 96, 100; trade and cred- 
 its, 87. 
 
 Meetings, frequency of, 51. 
 
 Michigan farm mutuals, 165, 166. 
 
 Milk comi)anIes, C, 156-158: the distri- 
 bution of milk, 156; the Onondaga 
 (N.Y.) association, 157-158; the Spring- 
 field (Mass.) asso., 158. 
 
 Mismanagement, results of, 18, 23. 
 
 Mistakes of co-operators, the, 169. 
 
 Monopoly vs. C, 11. 
 
 Mutual nre insurance companies (see 
 Farm and Town Mutual insurance 
 companies). 
 
 Mutual insurance, the general principle 
 of, 161. 
 
 Nationalism and socialism, 252. 
 
 Nature of C, 7. 
 
 New England milk producers' union, the 
 158. 
 
 Objection to C. trading answered, an, 12. 
 
 Object of C, the great, 17. 
 
 Onondaga Milk Association, the, 157, 
 158: amount of milk handled, 158: 
 how originally formed, 157: Its great 
 success, 157; limits of peddlers, 157; 
 requirements of members, 157. 
 
 Organization, the required, 18. 
 
 Over-valuation of farm insurance, 169. 
 
 Owen, Robert, 23. 
 
 Patrons' 0. bank of Olathe, Kan. the, 198. 
 
 Patrons of Husbandry, the, 18, 32, 105, 
 121. 
 
 People's banks, the 198-206 : capital vs. 
 Interest returns, 200; cash dealings 
 insisted on, 199; cash dealings vs. use 
 of credit, 198 ; extent of, 200, 201 ; how 
 the banks are operated, 202; how to 
 start, 184, 205 ; loans and their privi- 
 leges, 204; losses and profits, how di- 
 vided, 204; members and manage- 
 ment, 203; members' authority over 
 the managing board, 203; necessity of 
 a substantial share capital, 204; proper 
 use of credit, 198; some usual banking 
 features adopted, 204; usefulness of 
 the reserve fund, 204; well used credit 
 econouiv, 200. 
 
 People's Exchanges (see Farmers' and 
 People's Exchanges). 
 
 PliUaaelphla Industrial 0. society, the, 
 78. 
 
 Philadelphia women's exchange,the,250. 
 
 Politics vs. C, 14. 
 
 Principle, the true, 24. 
 
 Private trading vs. C, 12. 
 
 Production, C, 10, 29, 31, 127-158: ap- 
 plication to Eastern farmers, 130; beet 
 sugar fa<;torIes, 128; C. cheese factory, 
 158-156; C. dairying, 143-158; C. fac- 
 tories, 133-142; C. farming, 127; C. 
 milk companies, 156-158; danger to 
 be guarded against, 128; Dr. Gilman's 
 book, 138; homcsteadhig a township, 
 128; how the new settler can obtain 
 its benefits, 128; its complication, 127; 
 model by-laws, 138; other productive 
 enterprises, 138; productive failures, 
 137; profit sharing, 138; Rochdale 
 idea in, 127; success in Germany, 128: 
 use of a stock corporation, 130; what 
 Nebraska farmers are doing, 130; 
 working men C. producers, 131. 
 
 Productive efliort, failure in, 132. 
 
 Productive enterprises, other, 138. 
 
 Productive failures, examples of, 137. 
 
 Profit sharing, 138, 204.
 
 IKDEX. 
 
 349 
 
 Profits how divided, 13. 
 Proifress of C. In England, 25, 27-31 ; 
 Scotland, 30; United States, 32-36. 
 
 Province of C, 9-22. 
 
 Quarterly statement, the, 68. 
 
 KeU^ion vs. C, 14. 
 
 Kochdale system, the,17, 25, 35, 257-273. 
 
 Rogers, J. S., 124. 
 
 St. Louis Furniture Workers' Associa- 
 tion, 133-137: by-laws, 134; dividends 
 and wages, 133; factory rules, 136; 
 how shares of stock are taken up, 133; 
 Its humble start, 133; members and 
 their homes, 133 ; sharing In the losses 
 and profits, 134. 
 
 Science of C, the, 10. 
 
 Socialism, Christian, 9. 
 
 Sovereigns of Industry, the, 33. 
 
 Si)riugfleld (111.) women's exchange, the, 
 250. 
 
 Springfield (Mass.) C. MUk Association, 
 the, 158: amount of milk handled: 
 average returns to farmers; compared 
 with Boston and New Tork prices; 
 saving to farmers. 
 
 Spirit, the true C, 9. 
 
 Starting a C. store, 18, 125. 
 
 Stegenian, A., 105, 109, 112. 
 
 Stores and societies, C. : Allegan, Mich., 
 105-114; Arlington, at Lawrence, 
 Mass., 37-78; Bingham county. Idaho, 
 317; brazil, Ind., 320; Bristol, Eng., 
 29; Butte county, Cal., 322; Clark 
 county, Wa.sh., 315; Cowley county, 
 Kan., 321; Davison, Mich., 315; Eau 
 Claire, Wis., 320; English Wholesale, 
 28; Foxcroft, Me., 317; Johnson 
 county, Kan., 74, 114-121: Kingston, 
 Mass., 315; Lebanon, Ct., 318; Leeds, 
 Eng.,29; Lewistou, Me., 33,317; Linn 
 county, Kan., 314; Lisbon Falls, Me., 
 33, 312; Lyons, la., 83-97; Monte 
 Vista, Cal., 319, 320; New Bedford, 
 Mas.s., 314; Norwav, Me., 316; River- 
 side of Maynard, 322, 323 ; Rochdale, 
 24-20; San .lose, Cal., 318; Scottish 
 Wholesale, .30; South Paris, Me., 316; 
 Texas at Galveston, 121-125; Trenton, 
 N. J., 97-105; Worcester, Mass., 311, 
 312. 
 
 Store, tlie C. a grand success, 77. 
 
 Success In C, causes of, 80, 82. 
 
 Systems of C, two, 13. 
 
 Terms employed, the, 19. 
 
 Texas Alliance Exchange, the, 34. 
 
 Trade discounts, 33. 35. 
 
 Texas C. store, the, 121-124, 287-290: by- 
 laws, 121 ; compai ativc statement,123 : 
 dividends, how Ulvldfd, 121; general 
 remarks, 123; how owned ana opera- 
 
 ted, 121; how the business is done, 
 122; its building, 121; its conspicuous 
 success, 121; J. S. Rogers, 124; mutu- 
 al fli'e insurance company, 124; Presi- 
 dent A. J. Rose, 122; progress and 
 profits, 122 : rules and by-laws, 287-290. 
 
 Toothaker, W. H., 114. 
 
 Trade unions, 7. 
 
 Trenton (N. J.) C. store, the 97-103: a 
 big dividend payer, 97; annual com- 
 
 Sarison, 103; annual statement, 103; 
 ;enjamin Holland, 99, 102 ; by.laws 
 how they differ from Arlington's, 98; 
 coal and wood profits, 100; dividends, 
 102, 103; Frank Glenn, 99; how It 
 grew, 99; how it surpasses Arlington, 
 
 98; members, 99, 101; opposition 
 
 proi 
 reserve fund, 102; sharing profits with 
 
 met with, 99; property owned 
 
 ; oppos 
 ^ned by. 
 
 101; 
 
 shareholders, 98. 
 
 True system, progress of the, 35. 
 
 Trust vs. C, n. 
 
 Universal application of C, 7. 
 
 Union milk companies, 158. 
 
 Useful hint, a, 126. 
 
 What C. is and is not, 9-22. 
 
 Wholesale Society's Annual, the, 30. 
 
 Women's exchanges, 241-251, 332-334: 
 address of women's exchanges, 332- 
 334; advantages in country as well as 
 city, 251; articles remaining unsold, 
 246; attractive room desired, 243; be- 
 ginning of a small exchange, 245 ; bal- 
 ance sheet of successful exchanges, 
 250; business manager, 243; consign- 
 ors' risks, 246; duties of the adjudi- 
 cating committee, 245; entrance fee, 
 242; express and mall charges, 246; 
 Helen Campbell, 241; history of, 242; 
 how to pack cake, 248 ; how to start, 
 242; how to start goods, 246; invoice 
 of contents, 247; lunch room or res- 
 taurant, 243, 244; model rules, 251, 
 252; nece.sslty of a uniform (luallty, 
 247 : New York exchange, 242 ; organ- 
 ization and officers, 244; organizers vs. 
 consignors, 242; specialties most prof- 
 itable, 248; percentage on sales, 245: 
 proi)er rules, 251; i)rovi8ions called 
 for, 241: rules covering consignments, 
 246, 247; two sets of duties, 242; un- 
 salable articles, 246; use of a special 
 label, 249; what articles will pay best, 
 247. 
 
 Working men C, producers, 131. 
 
 Worklngmen's Protective Union, the,32. 
 
 Worcester (Mass.) C. stores, 311, 312: 
 protective union, 312; Sovereigns', 
 311; Swedish Mercantile, 812.
 
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 THE STANDARD AUTHORITY in all matters pertaining to 
 Agriculture, Horticulture, and Rural Arts, and the oldest and most 
 ably edited periodical of its class in the world. 
 
 Sest Rural Periodical in The World. 
 
 CnhcPPlT^fiftn TormC $1-^^ ** y**'^"*' postage included 
 OUUoOlipUUll ICilUO. sample copies 15 cents each. 
 
 TRY IT A YEAR ! 
 
 AMERICAN AGRICULTURIST, ^^ nJii^rN^'r^oBK.
 
 A YainaWe Per cdical for eYeryDo^y in City, Village, M Conntry. 
 
 The flmefican ft gi'icultim'ig i 
 
 (ESTABLISHED 1842.) 
 
 FHE LEADING INTERNATIONAL PUBLICATION 
 
 FOR THE 
 
 FARM, GARDEN, AND HOUSEHOLD. 
 
 A MONTHLY MAGAZINE of from 48 to 64 pages in each number, 
 containing in each volume upward of 700 pages and over 1000 original engravings 
 of typical and prize-winniiic; Horses, Cattle, Sheep, Swine, and Fowls; New 
 Fruits, Vegetables, and Flowers ; House and Barn Plans ; New Implements and 
 Labor-saving Contrivances ; and many pleasing and instructive pictures for young 
 and old. 
 
 THE STANDARD AUTHORITY in all matters pertaining to 
 At?ricultiire, Horticulture, and Rural Arts, and the oldest and most ably edited 
 periodical of its class in the world. 
 
 BEST RURAL PERIODICAL IN THE WORLD. 
 
 The thousands of hints and suggestions given in every volume are prepared by 
 practical, intelligent farmers, who know what they write about. 
 
 The Household Departmentis valuable to every housekeeper, afford, 
 ine very many useful hints and directions calculated to lighten ana facilitate 
 indoor work. 
 
 The Department for Children and Youth is prepared with 
 
 special care, to furnish not only amusement, but also to inculcate knowledge 
 and sound moral principles. 
 
 Sntsoriptln Terms : $1.50 a year, pottagt iceladel ; lample eopltt, 15o, tMh. 
 in? -A. ic:eiaji\. i 
 
 Address, 
 
 AMERICAN AGRICULTURIST, 
 
 52 & 54 Lafayette Place, New York.
 
 ORANGE JUDD COMPANY'S CATALOGUE. 
 
 LIST OF BOOKS 
 
 Pertaining to Rural Life. 
 
 ORANGE JUDD COMPANY, Publishers, 
 
 52 & 54 Lafayette Place, New York. 
 
 Our 112-page full descriptive catalogue mailed to any 
 
 address on application. 
 [Any of these books will be forwarded by mall, postpaid, on receipt of price.] 
 
 FARM AND GARDEN. 
 
 ABC of Agrlcnltnre. Weld ; $o 50 
 
 Alien, R. li. and L. F. New American Farm Book 2 50 
 
 Bamford, C. E. Silk Culture. Paper 30 
 
 Barnes and Robinaon. Asparagus Culture 50 
 
 Beal. Grasses of North America 2 50 
 
 Be n n e tt . Farm Law 75 
 
 Billings, E. R. Tobacco 8 00 
 
 BoclioTe. Kalamazoo Celery 50 
 
 Bommer. Method of Making Manures 25 
 
 Brill. Farm-Gardening and Seed-Growing 1 00 
 
 Cauliflowers 20 
 
 Brisbin. Trees and Tree Planting , 1 50 
 
 Broom-Corn and Brooms 50 
 
 Collier. Sorghum ; Its Culture and Manufacture 00 
 
 Cook. Maple Sugar and the Sugar Bush 40 
 
 Curtis. Wheat Culture. Paper tC 
 
 DeCandolle. Origin of Cultivated Plants 2 OQ^^ 
 
 Kmerson and Flint. Manual of Agriculture 1 sAj^ 
 
 Falconer, Wm. MushroomB : How to Grow Them 1 50^*^ 
 
 Farm Appliances 1 00 . 
 
 Farm Conveniences 1 50 '^ 
 
 Farming for Boys 1 25 --^ 
 
 Farming for Profit 3 75 p 
 
 FItz. Sweet Potato Culture 60 '" 
 
 Flax Culture. Paper 30 ^ 
 
 Flint. Grasses and Forage Plants 2 00
 
 
 ^ 
 
 
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 DATE DUE 
 
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