UC-NRLF 
 
 -" 
 
 Fv - :, 
 
 
 fe! H 
 
LI BR AR Y 
 
 OF THE 
 
 UNIVERSITY OF CALIFORNIA 
 
 GIRT OK 
 
 Received 
 Accessions 
 
 Shelf No. 
 
 
SI 
 
 OF 
 
 DISTRIBUTIVE CO-OPERATION, 
 
 [PREPARED IN ACCORDANCE WITH THE PROVISIONS OF CHAP. 51, 
 or THE RESOLVES OF 1885.] 
 
 BY 
 CARROLL D. WRIGHT, 
 
 CHIEF OF THE BUREAU OF STATISTICS OF LABOR. 
 
 
 BOSTON : 
 
 WRIGHT & POTTER PRINTING CO., STATE PRINTERS, 
 
 18 POST OFFICE SQUARE. 
 
 1885. 
 
0f 
 
 ACTS AND RESOLVES. OF 1885, . 
 
 RESOLVES, CHAPTER 51. 
 
 RESOLVE PROVIDING FOR THE PUBLICATION BY THE 
 
 BUREAU OF STATISTICS OF LABOR OF INFORMA- 
 TION CONCERNING CO-OPERATIVE DISTRIBUTION 
 IN GREAT BRITAIN. 
 
 Resolved, That the chief of the bureau of statistics of labor be 
 and he is hereby instructed to prepare and publish for distribution a 
 pamphlet descriptive of the history, methods and present condition 
 of co-operative distribution in Great Britain ; and he may expend in 
 the preparation and publication of the same a sum not exceeding 
 eighteen hundred dollars. Approved May 12, 1885. 
 
 [The valuable services of Mr. Horace G. Wadlin, in the collection of ma- 
 terial for and preparation of the following manual, are gratefully acknowl- 
 edged.] 
 
A MANUAL 
 
 OP 
 
 DISTRIBUTIVE CO-OPERATION. 
 
 Upon an order introduced in the Massachusetts House of 
 Representatives, January 29, 1885, by Mr. Henry M. Cross 
 of Newburyport, a Resolve was reported by the Committee 
 on Labor, passed by both branches, and approved March 12, 
 1885, directing the Chief of the Bureau of Statistics of Laboi 
 "'to prepare and publish for distribution a pamphlet descriptive 
 of the history, methods, and present condition of co-operative 
 distribution in Great Britain." Under that Resolve the account 
 contained in the following pages has been prepared, and, besides 
 its publication in pamphlet form, is also presented as Part I. of 
 the Seventeenth Annual Report of the Bureau. 
 
 The publication directed by the Resolve relates to facts and 
 not argument, and it has been our aim to present these facts with 
 fulness. For that purpose we have not hesitated to reproduce 
 the statements of others, generally in their Own language, 
 whenever such statements were concise presentations of the 
 particular facts desired. 
 
 In regard to certain phases of the subject it has seemed best 
 to let co-operators speak for themselves rather than to embody 
 their ideas in our own words. In all such cases we have given 
 due credit in foot notes, and in further acknowledgment we 
 desire here to mention our indebtedness to the pamphlets and 
 other publications of the Central Co-operative Board, Man- 
 chester, England ; the annual reports of the Co-operative Con- 
 gresses of Great Britain ; the Annuals issued by the English 
 Co-operative Wholesale Society ; the works of George Jacob 
 Holyoake, and to the little manual, entitled "Working Men 
 
 5] 
 
6 A MANUAL OF 
 
 Co-operators", by Arthur H. Dyke Acland and Benjamin 
 Jones.* 
 
 The publications of the Central Co-operative Board, partic- 
 ularly those relating to practical details, are invaluable to any 
 one desiring to engage in co-operative distribution. Full lists 
 of these publications may be obtained upon application to the 
 Secretary, City Buildings, Corporation Street, Manchester, 
 England. The reports of the Congresses and the Co-operative 
 Annuals contain much valuable statistical matter. The works 
 of Holyoake, published by Triibner & Co., London, and to be 
 obtained through any bookseller, are exhaustive and authentic 
 as relates to the history of the co-operative movement in Great 
 Britain, while the manual by Acland and Jones is a brief and 
 inexpensive, yet exceedingly useful handbook covering the whole 
 subject. 
 
 WHAT IS CO-OPERATION? 
 
 At the outset it is proper to define exactly what the subject 
 is that we are to treat. The term co-operation as applied in 
 practice at the present day is not used in its strict etymological 
 meaning. Nor is co-operation as at present conducted what its 
 early advocates proposed. Etymologically" considered co-op- 
 eration means to labor together. It has an industrial significance. 
 On the contrary the co-operation of the present has won its 
 greatest success in commercial rather than industrial directions. 
 Its application to productive industry is still largely experi- 
 mental, and the experiments that have succeeded are, in most 
 instances, not purely co-operative. 
 
 Co-operation as proposed by its early advocates contemplated 
 a social transformation, introducing into the operations of in- 
 dustry and trade, that is, into the operations of production and 
 distribution, such principles as would overcome the evils that 
 attend competition. It aimed to reconstruct society upon the 
 communistic basis, its motto being each for all and all for each," 
 rather than the too common one of "every man for himself." 
 Individualism it deemed contrary to the general good, and it 
 sought to substitute for individualism some system of joint en- 
 deavor through which the laborer, the capitalist, and the con- 
 
 * Cassell & Co., Publishers, London, Paris, and New York, 1884. 
 
DISTRIBUTIVE CO-OPERATION. 7 
 
 sumer should be brought into relations of mutual help rather than 
 remain in their usual position of rivalry. Ideally, something like 
 this is still hoped for by ardent co-operators, but practically no 
 such social transformation has yet taken place. Competition still 
 flourishes, and the reconstruction of society upon the commu- 
 nistic basis is not to-day the chief end of co-operative endeavor. 
 The co-operation of the present that is highly successful, and 
 which we are mainly to consider here, relates to the distribution 
 of products rather than to production . It is co-operative trading, 
 not co-operative labor, if, indeed, the latter term is permissible. 
 We shall show hereafter how success in co-operative distribution 
 has, in some cases, paved the way to experiments more or less 
 complete and more or less successful in co-operative production, 
 but it is chiefly with distribution that we have to deal ; and it is 
 in this field that co-operation, in the sense of mutual effort, has 
 won its greatest triumphs. The benefits obtained by those who 
 have engaged in this form of co-operation are so great that its 
 history, methods, and present condition are well worth our study 
 and will amply reward our investigation. 
 
 One who by virtue of his experience, and his services to the 
 co-operative movement, is certainly entitled to formulate a defi- 
 nition has presented the following : 
 
 " Co-operation, in the social sense of the word, is a new power of 
 industry, constituted by the equitable combination of worker, cap- 
 italist, and consumer, and a new means of commercial morality, by 
 which honesty is rendered productive. 
 
 " It is the concert of many for compassing advantages impossible 
 to be reached by one, in order that the gain may be fairly shared by 
 all concerned in its attainment." * 
 
 This definition which is comprehensive, while no doubt em- 
 bodying the author's views, would not be accepted by all 
 co-operators, many of whom are unwilling to admit the claim 
 of the consumer, as a consumer, to a share of the profits arising 
 from productive effort. However this may be, all are agreed 
 that in co-operative distribution the consumer should share in 
 the profits derived from his trade. This feature is essential 
 in modern co-operative distributive associations and distin- 
 
 Holyoake. History of Co-operation, Vol. I., page 2. 
 
8 A MANUAL OF 
 
 guishes them from early attempts in this direction, and from 
 joint stock associations. 
 
 Joint stock associations divide profits by payment on capital, 
 that is, on shares. Co-operative distributive associations divide 
 profits on purchases, not on shares, and pay to shareholders a 
 fixed rate of interest on the capital invested. 
 
 Applying to the scheme of co-operative distribution the spirit 
 of the last clause of Mr. Holyoake's definition just quoted, we 
 may define it as *-^A union of many consumers for the pur- 
 pose of securing in the purchase of commodities advantages 
 impossible to be obtained by one, through an equitable division 
 of the profits derived from their purchases. -C^ 
 
 Such co-operative unions are upon the continent of Europe 
 termed " consumers' societies." As has been said by another, 
 " they have succeeded in making 20s. of earnings go as far as 
 22 or 23 in an ordinary shop. The true problem of co-opera- 
 tion lies deeper, that is, how to secure the original 20s. in 
 workshops under their own management." 
 
 Leaving for the present this deeper problem we shall describe 
 the manner in which the distributive societies of England have 
 grown up, their mode of operation, and what they have accom- 
 plished. Afterward we shall glance briefly at the other phases 
 of the co-operative movement. 
 
 HISTORY OF THE MOVEMENT. 
 
 At the beginning of the present century the condition of the 
 common people attracted the attention of certain social philoso- 
 phers who, seeing the misery that often existed among the 
 working classes, endeavored to devise some scheme for the 
 reconstruction of society upon more favorable conditions. 
 Among these social reformers Saint Simon and Fourier, in 
 France, and Robert Owen, in England, each in his own way, 
 hoped to re-create society upon an ideal basis by a sudden and 
 radical change from existing conditions. It is now seen that it 
 is only by gradual steps that society advances, and that num- 
 berless influences and the slow progress of years are necessary 
 to effect important social changes. Therefore it is not surpris- 
 ing that none of these schemes succeeded, although some of 
 them were, in their day, exceedingly attractive. 
 
 The influence of Robert Owen upon the co-operative move- 
 
DISTRIBUTIVE CO-OPERATION. 9 
 
 ment in England was immediate and important. He has, 
 indeed, been credited with the origin of the term co-operation 
 as applied to industry. "In no literature," says Holyoake, 
 " before the active days of this social devisor, does any 
 trace of this new industrial shibboleth, co-operation, appear." * 
 "The principles of co-operation were first put together and 
 clearly stated by Mr. Owen in his earliest writings." f 
 
 .But by co-operation, Owen meant a communistic organization 
 of society for the mutual benefit of all. Between 1820 and 
 1830 great enthusiasm was aroused in England in this direc- 
 tion, having its practical outcome in the establishment of com- 
 munities upon the co-operative plan. The first newspaper 
 organ devoted to the theories then in vogue was the Economist 
 in 1822, although Owen and others more or less inspired by 
 him had previously published pamphlets unfolding their plans 
 for social improvement. William Thompson, in 1827, pro- 
 duced a little work called "Labor Rewarded," in which he 
 aimed to set forth a scheme for a more just distribution to labor 
 of its share of product, and presented directions for the estab- 
 lishment of co-operative companies. Later the Combes and 
 Robert Dale Owen, among others, aided the movement with 
 their pens. 
 
 In 1824 the London Co-operative Society was formed. In 
 its rooms were held meetings for discussion, and it also under- 
 took the sale of goods made by provincial societies. In 1826 
 the Co-operative Magazine and Monthly Herald was established, 
 this being the second co-operative organ in England, and two 
 years later the Co-operator, a four-paged penny paper, was 
 published. The latter, however, failed in 1830. Meantime 
 other periodicals and a number of societies were established for 
 the discussion and advancement of co-operative views. 
 
 The first co-operative congress was held at Manchester in 
 May, 1830. Fifty-six societies were represented by delegates. 
 These societies comprised 3000 members, who had by co-oper- 
 ative trading and weekly contributions acquired within fifteen 
 months 6000 capital.^ Congresses continued to be held for 
 severa. years. 
 
 * History of Co-operation, Vol. I., page 53. 
 t Co-operative Miscellany, No. 2, 1830. 
 . J History of Co-operation, Vol. I., pages 150, 151. 
 
'10 A MANUAL OF 
 
 There were said to be nearly 300 societies in Great Britain 
 in 1830, their aggregate membership being about 20,000. 
 
 Most of the periodicals started before 1830 had ceased to 
 exist by that year. In 1832 Owen began the publication of a 
 new paper called the Crisis, and from time to time thereafter 
 others appeared in the British Provinces. 
 
 The early attempts at co-operation took various forms. It 
 seemed as if those interested, intoxicated with the hope of a 
 brighter world than that with which they were unhappily famil- 
 iar, were ready to accept any scheme, no matter how wild or 
 ill-digested, that had in it the promise of improvement. The 
 enthusiasm with which these schemes were embraced afforded 
 in most instances a striking contrast to the failure which finally 
 overtook them. But the discussion of the general subject in 
 congresses and through the medium of the press widely dis- 
 seminated co-operative views. Most of the enterprises sug- 
 gested were based upon the communistic plan. The central idea 
 around which clustered the co-operative experiments projected 
 by the leaders of the movement was in those days the re-casting 
 of society upon the basis of a community of united interests. 
 But, as Mr. Holyoake has pointed out, " these dreams were 
 postponed on the part of many, and were regarded as separate 
 objects by more, and not regarded at all by the majority of 
 co-operators, who had formed stores and established numer- 
 ous manufacturing societies for the mutual advantage of the 
 members." * 
 
 The following table shows existing registered co-operative 
 stores established before 1844, with the date of their estab- 
 lishment, and the date when the profits were first divided on 
 purchases.f 
 
 * History of Co-operation, Vol. I., page 188. 
 ' f Workingmen Co-operators, page 23. 
 

 
 DISTRIBUTIVE CO-OPERATION. 
 
 11 
 
 Existing Registered Co-operative Societies established before 1844. 
 
 Date 
 established. 
 
 NAME OP SOCIETY. 
 
 When profits were first divided 
 on purchases. 
 
 1777 
 
 
 1878 
 
 1795 
 
 1801 
 1801 
 
 Hull A. C. Mill, 
 HullS. C. Mill 
 Whitby Corn Mill, . . . 
 
 1855 
 Not known. 
 Not known. 
 
 1812 
 
 
 1813 
 
 1816 
 1817 
 
 Sheerness Economical, .... 
 
 1863 
 1818 
 
 1821 
 
 Larkhall, 
 
 Profits divided equally. 
 
 1827 
 
 
 1827 
 
 1828 
 
 Bridgeton, 
 
 1828 
 
 1829 
 
 
 1861 
 
 1829 
 
 Huddersfield W., 
 
 Not known. 
 
 1830 
 
 Bannockburn, ..... 
 
 1866 
 
 1830 
 
 Huddersfield B., 
 
 1834 
 
 1831 
 
 Forfar, West Town, .... 
 
 1863 
 
 1832 
 
 FoleshillL. L 
 
 1865 
 
 1832 
 
 Foleshill S. S. R., 
 
 1836 
 
 1832 
 
 
 1850 
 
 1832 
 1833 
 183 1 
 
 Stockport Great Moor, .... 
 Arbroath, 
 Forfar, West Port, 
 
 1832 
 1861 
 1863 
 
 1834 
 1836 
 
 Kirkheaton, ...... 
 Glasgow, St. Rollox, .... 
 
 1867 
 1836 
 
 1837 
 
 Devonport Coal, ..... 
 
 Profits divided equally. 
 
 1838 
 
 
 
 1838 
 
 Leslie Bread, ...... 
 
 1872 
 
 1839 
 1840 
 1840 
 
 Hawick, 
 Darvel, ....... 
 Hepworth, ...... 
 
 Shortly after starting. 
 1859 
 Not known. 
 
 1840 
 1840 
 
 Leslie, 
 Netherton, ...... 
 
 1864 
 Not known. 
 
 1840 
 
 Tillicoultry, . . . . . . 
 
 1864 
 
 1842 
 
 Freuchie, ...... 
 
 1862 
 
 1842 
 
 Galashiels, ...... 
 
 1847 
 
 1842 
 1843 
 
 Middleton-in-Teesdale, .... 
 Falkland, ' . 
 
 1874 
 1865 
 
 1843 
 
 Kettle, . . . 
 
 1863 
 
 Most_of_the early stores did not succeed. The reasons for 
 their failiirjQ.jyjsre various. The law did not afford co-operative 
 enterprises adequate protection, and through its technicalities 
 unprincipled men might easily embezzle the funds of the 
 society and escape punishment. Non-adherence to the cash 
 system was in many cases disastrous. But, besides these diffi- 
 culties under which co-operative stores labored, the great ob- 
 stacle to success was the defective plan upon which they were 
 
12 A MANUAL OF 
 
 based. Most were joint stock concerns dividing profits among 
 shareholders only, and no arrangement was provided for capi- 
 talizing profits upon the plan of allowing dividends to remain 
 undrawn as interest-bearing deposits. This "we shall hereafter 
 see was remedied in the Rochdale scheme of co-operative dis- 
 tribution which has become so successful. By reference to the 
 table just presented it will be noticed how few of the early 
 stores still remaining divided profits on sales until after the 
 year 1844 in which the Rochdale scheme was made public. 
 Many early stores failed, also, because after the first enthu- 
 siasm was exhausted members had no sufficient motive to con- 
 tinue their work. 
 
 After the social reformers whom we Jiave named Saint 
 Simon, Fourier, and Owen, came Leroux, Cabet, Proudhon, 
 and Greaves, and, finally, M. Louis Blanc, who, in 1840, pub- 
 lished " IS organization du Travail" a work which gave a 
 decided impetus to co-operative endeavor. 
 
 Blanc proposed to reorganize labor under government direc- 
 tion so as to regulate production and ultimately to prevent 
 competition. In brief, he contemplated the establishment 
 of social factories, under government patronage and control, 
 upon a plan at first circumscribed but adapted to indefinite ex- 
 pansion. The regulations governing these social factories were 
 to be made by legislative enactment and to have the force of 
 law. All workmen of good character were to be eligible to 
 admission to these factories, limited only to the number possi- 
 ble to be employed with a given amount of capital. Salaries 
 were to be equal. 
 
 Mutual interest in . the success of the factories was to be 
 secured by the mode of division of profits which were to be 
 apportioned in three parts, one to be distributed to all members 
 equally ; one set aside for support of the aged or incapacitated 
 and to alleviate the effect of industrial crises ; and the third 
 part to be used for the extension of the industry, the idea 
 being so to expand the business as to furnish employment to 
 all who might desire to join. 
 
 Upon the scheme proposed ' ' each social factory may be 
 composed of different businesses grouped round some great 
 industry, parts of the same whole, obeying the same laws, and 
 sharing in the same advantages." 
 
DISTRIBUTIVE CO-OPERATION. 13 
 
 M. Blanc contemplated the admission of capitalists to these 
 associations or factories upon the basis of a fixed interest on 
 capital invested, but not to share in profits except as laborers. 
 
 With respect to M. Blanc's influence upon the growth of the 
 co-operative idea, Mr. Thomas Hughes, after pointing out that 
 his scheme is characterized by the French tendency of reliance 
 upon government to do for the people what they despair of 
 doing for themselves, very justly says : 
 
 ' ' Nevertheless it marks a great epoch in the history of social 
 reform by the clearness with' which it pointed out three principles 
 ever since more or less distinctly felt to be the life blood of co- 
 operative efforts : first, the looking to the association of workers 
 carrying on their accustomed work in common as the true means of 
 raising their social condition thuough the use of the profits arising 
 from their work ; second, the restricting the payment of capital to a 
 fixed rate of interest, and giving the capitalist security for his cap- 
 ital in lieu of profit ; third, the elimination of the ruinous effects of 
 competition, and the substitution of a healthy emulation in its place, 
 by the union of different establishments carrying on the same in- 
 dustry by common centres by means of which diverse industries 
 may also be united. Thus, setting aside ths arbitrary rule of an 
 absolute equality of salaries, which experience has not justified 
 where the attempt to act upon it has been tried, and which seems 
 to err as much by sacrificing the individual to the body as the pres- 
 ent inequality of payment errs in sacrificing the body to the indi- 
 vidual, this organisation du travail may still be regarded as the 
 prolific egg out of which the ideas of co-operation sprang in France, 
 and which has had no inconsiderable influence on the ideas of co- 
 operators in England." 
 
 Our review has now brought us to the date of an important 
 event in the history of co-operation in England. The experi- 
 ments in communistic co-operation had practically failed. A 
 few stores, principally upon the joint stock plan, still remained, 
 but there was no cohesive force binding them together. There 
 
 O O 
 
 was, however, considerable co-operative sentiment existing in 
 the country, waiting a favorable moment to spring into activity. 
 Not entirely unfamiliar with the theory of co-operation were 
 the weavers of Rochdale, 28 of whom, massing their meagre 
 capital of 1 each, were to engage in a scheme of co-operative 
 distribution upon a plan so practical and with an energy so 
 
14 A MANUAL OF 
 
 determined as to carry the assurance of success. Under the 
 name of "The Rochdale Pioneers," these weavers secured 
 quarters in an old weavers' shop in Toad Lane, Rochdale, and, 
 with the limited stock of groceries purchasable with their united 
 capital of 28, began business in 1844. The insignificant char- 
 acter of their enterprise provoked the ridicule of the public. 
 
 ' ' When the day and hour for commencing business arrived the 
 little party assembled within to take part in the ceremony were 
 abashed at the largeness of the crowd assembled to witness it. 
 Some delay took place before any one could muster up courage to 
 take down the shutters, and when at last the ' store ' and its con- 
 tents were exposed to public view, all Toad Lane was in a roar. 
 Loud and long were the shouts of derision that rose from a host of 
 4 doffers,' a species of street boy peculiar to the clothing districts, 
 who, set on by persons who ought to have known better, stared 
 through the windows or blocked up the doorway, evincing their 
 characteristically precocious sense of the ridiculous by the nature 
 of their comments on the modest display of the ' owd weavers' 
 shop/"* 
 
 But success, instant and unmistakable, overcame ridicule. 
 Not long were these 28 weavers left unsupported in their 
 effort to supply themselves with groceries free from the adul- 
 terations and imperfections found in those furnished at the 
 ordinary shops, and, at the same time, divide among them- 
 selves the profits accruing from their sale. A scheme so 
 practical, conferring benefits so great, at once attracted new 
 members. The next year the association numbered 74, and 
 the joint capital rose to 181. The whole story of their 
 progress is most eloquently told by statistics, and we there- 
 fore present it in that form, availing ourselves of the follow- 
 ing table : f 
 
 * W. T. Thornton. On Labour, page 376. 
 
 f Reproduced from " On Labour," Thornton, page 377. 
 
DISTRIBUTIVE CO-OPERATION. 
 
 15 
 
 Statistics of the Rochdale Equitable Pioneers. 
 
 YEAR. 
 
 No. of 
 Members. 
 
 Funds. 
 
 Business 
 done. 
 
 Profits. 
 
 
 
 
 
 
 
 
 
 1844 
 
 
 
 
 
 28 
 
 28 
 
 - 
 
 - 
 
 1845 
 
 
 
 
 
 74 
 
 181 
 
 710 
 
 22 
 
 1846 
 
 
 
 
 
 80 
 
 252 
 
 1,146 
 
 80 
 
 1847 
 
 
 
 
 
 110 
 
 286 
 
 1,924 
 
 72 
 
 1848 
 
 
 
 
 
 140 
 
 397 
 
 2,276 
 
 117 
 
 1849 
 
 
 
 
 
 390 
 
 1,193 
 
 6,611 
 
 561 
 
 1850 
 
 
 
 
 
 600 
 
 2,299 
 
 13,179 
 
 880 
 
 1851 
 
 
 
 
 
 &30 
 
 2,785 
 
 17,638 
 
 990 
 
 1852 
 
 
 
 
 
 680 
 
 3,471 
 
 16,352 
 
 1,206 
 
 1853 
 
 
 
 
 
 720 
 
 5,848 
 
 22,760 
 
 1,674 
 
 1854 
 
 
 
 
 
 900 
 
 7,172 
 
 33,364 
 
 1,763 
 
 1855 
 
 
 
 
 
 1,400 
 
 11,032 
 
 44,902 
 
 3,106 
 
 1866 
 
 
 
 
 
 1,600 
 
 12,920 
 
 63,197 
 
 3,921 
 
 1857 
 
 
 
 
 
 1,850 
 
 15,142 
 
 79,788 
 
 5,470 
 
 1858 
 
 
 
 
 
 1,950 
 
 18,160 
 
 71,680 
 
 6,284 
 
 1859 
 
 
 
 
 
 2,703 
 
 27,060 
 
 104,012 
 
 10,739 
 
 1860 
 
 
 
 
 
 3,450 
 
 37,710 
 
 152,063 
 
 15,906 
 
 1861 
 
 
 
 
 
 3,900 
 
 42,925 
 
 176,206 
 
 18,020 
 
 1862 
 
 
 
 
 
 3,501 
 
 38,465 
 
 141,074 
 
 17,564 
 
 1863 
 
 
 
 
 
 4,013 
 
 49,361 
 
 158,632 
 
 19,671 
 
 1864 
 
 
 
 
 
 4,747 
 
 62,105 
 
 174,937 
 
 22,717 
 
 1865 
 
 
 
 
 
 5,326 
 
 78,778 
 
 196,234 
 
 25,156 
 
 1866 
 
 
 
 
 
 6,246 
 
 99,989 
 
 249,122 
 
 31,931 
 
 1867 
 
 
 
 
 
 6,823 
 
 128,435 
 
 284,910 
 
 41,619 
 
 Not only did the business expand financially but its scope 
 was broadened. The original stock in trade was confined to 
 the leading staple groceries, such as flour, oatmeal, sugar, and 
 butter. The following table shows the departments afterward 
 added and the date of opening each : 
 
 DEPARTMENTS. 
 
 Date of 
 opening. 
 
 Linen and woollen drapery, ..;.... 
 
 1847 
 1850 
 
 Shoe and clog making, ........ 
 Tailorino*, .......... 
 
 1852 
 1852 
 
 Coal dealing, .......... 
 Baking, ........... 
 
 1867 
 
 
 
 Ten or more branch stores are now carried on in the town of 
 
16 A MANUAL OF 
 
 Rochdale, and extensive premises owned by the association 
 have taken the place of the old weavers' shop of 1844. 
 
 From the first, part of the profits were set aside for educa- 
 tional purposes, and an extensive library and liberally equipped 
 reading room are now maintained. 
 
 The following statement exhibits the condition of the asso- 
 ciation in 1884, and when contrasted with its humble origin is 
 itself a striking justification of the principles upon which the 
 business has been managed : 
 
 Members. 
 Number of members, December 31, 1884, 11,161 
 
 Liabilities. 
 
 Share capital, December 31, 1884 329,470 
 
 Loan capital, December 31, 1884, 14,561 
 
 Reserve fund, December 31, 1884, 2,605 
 
 Assets. 
 
 Value of saleable stock, December 31, 1884, .... 28,593 
 Value of land and buildings and fixed stock, December 31, 
 
 1884, 53,442 
 
 Investments, December 31, 1884, 242,432 
 
 Trade and Profits. 
 
 Received for goods sold during 1884, .... . 262,270 
 
 Total net profit made during 1884, 36,992 
 
 Average dividend paid per , 2s. 9f d. 
 
 Applied to educational purposes during 1884, .... 920 
 
 Applied to charitable purposes during 1884, . . . . 118 
 
 Subscriptions to Central Board, 46 Os. lOd. 
 
 The Rochdale store was not the first to engage in co-opera- 
 tive trade, as we have already shown, nor was it the first to 
 divide profits on sales. But whether the time was more pro- 
 pitious or the character of its founders more favorable to suc- 
 cess, it became, unlike its predecessors, true to its name, the 
 pioneer of the distributive associations now numbered by hun- 
 dreds in Great Britain. Unlike the joint stock companies the 
 cardinal principles of co-operative distribution were observed 
 by them : All profits to be divided on purchases* and all pur- 
 chasing members to be made shareholders with a fixed interest 
 on the capital invested. The cash system to be strictly adhered 
 to. 
 
DISTRIBUTIVE CO-OPERATION. 17 
 
 A single paragraph by Holyoake gives a synopsis of the early 
 and later phases of co-operation in Great Britain, and shows 
 the trend of co-operative endeavor after the year 1844. He 
 says : 
 
 "The term co-operation was at first, as the reader sees, used in 
 the sense of communism, as denoting a general arrangement of 
 society for the mutual benefit of all concerned in sustaining it. 
 Later, the term co-operation came to be restricted to the humbler 
 occupations of buying and selling provisions."* 
 
 The germ planted at Rochdale was not long in developing. 
 
 u It was not, however, till the great revolutionary crisis of 1848-9 
 that any strong impulse was given to co-operation in England. 
 * * * Co-operation at this time took a start (in the north of 
 England) as noteworthy, and more permanent in its results, than 
 the famous Parisian movement, which, after surviving the barri- 
 cades, withered in the first year of the second empire. 
 
 " The stores in Lancashire and Yorkshire rose rapidly from units 
 to tens, from tens to hundreds. The need of some sort of federa- 
 tion began to be felt, and conferences of neighboring societies to be 
 held in different localities to consider questions of organization and 
 joint action. For, as the societies grew in number and importance, 
 and their trade began to extend beyond the supply of the simplest 
 necessities of life, the state of the law was found to press very 
 severely upon them. They were hampered at every turn, and found 
 themselves going into action, as it were, in the great struggle for 
 existence, not as men in proof armor, but as men in fetters." | 
 
 The remedy was at hand. Workingmen throughout Eng- 
 land were seeking through legislation to obtain wider oppor- 
 tunities and the freedom of action that had been denied them. 
 The years 1844, 1846, and 1847 witnessed the passage of im- 
 portant statutes affecting factory administration, the hours of 
 labor, and the formation of friendly and trade societies, and 
 saw, also, the repeal of the corn laws. The progress of the 
 working classes was once more under discussion and their con- 
 dition grew brighter day by day. And now Mr. Frederic 
 
 * History of Co-operation, Vol. I., page 68. 
 
 t Thomas Hughes. Lecture on the History and Objects of Co-operation (Co- 
 operative Board Pamphlets), page 7. 
 
18 A MANUAL OF 
 
 Maurice, with others attracted by his energy and enthusiasm, 
 came forward in aid of the co-operative movement. It was 
 fortunate that when the need of favorable legislation was most 
 pressing the influence of Maurice was enlisted. For he, from 
 his position as reader at Lincoln's Inn, was able to interest 
 many young and ardent lawyers, members of his congregation, 
 in the progress of the working classes, and to impart to them 
 his own firm conviction that co-operation was to be an impor- 
 tant element in that progress. 
 
 In 1850 a society for promoting workingmen's associations 
 was formed, Mr. Maurice being at its head. Co-operation it 
 declared to be " the practical application of Christianity to the 
 purposes of trade and industry." This society became an active 
 force in behalf of the co-operative movement in the practical di- 
 rection it had now taken. Attracting to itself many co-operators 
 of the Owen school and numbering among its members, besides 
 Maurice, such men as the late Canon Kingsley, J. M. Ludlow, 
 and E. V. Neale,* its attention was immediately devoted to 
 securing the needed reform in law so as properly to guard and 
 foster co-operative societies. 
 
 The first act affording an adequate legal basis for such societies 
 was passed in 1852, 15 Victoria, 31. The efforts put forth to 
 secure this legislation drew together those engaged in co-opera- 
 tion throughout Great Britain. It is estimated that at the time 
 of its passage about 140 co-operative stores were in existence. 
 The society under Maurice's administration became a sort of 
 working co-operative centre, and in its hall, July 26, 1852, was 
 held a conference of delegates from the provincial societies, at 
 which the new law was discussed, the establishment of a whole- 
 sale supply depot considered, the need of a newspaper organ 
 debated, and other important matters brought forward. The 
 first four years' work under the leadership of the London society 
 is thus summarized by Mr. Hughes : 
 
 " Co-operative societies had been legalized for all purposes, except 
 dealing with land and banking. The moral side of the movement 
 
 * Now Secretary to the Central Co-operative Board. Mr. Ludlow is now Registrar of 
 Friendly Societies. The members of this society were known as Christian Communists 
 or Christian Socialists. In Parliament, Messrs. Walter Morrison, Thomas Hughes, and 
 Messrs. Slaney, Henley, and others rendered material aid to the society in its efforts to 
 secure legislation. 
 
DISTRIBUTIVE CO-OPERATION. 19 
 
 had been brought into prominence, and principles had been accepted 
 as essential, and incorporated into the constitution and rules of the 
 societies, which have retained their hold, and are to this day appealed 
 to as fundamental. And lastly, the necessity for closer union between 
 the societies had been demonstrated and considerable advances made 
 towards its attainment." 
 
 In 1857, Mr. Holyoake published his " History of Co-opera- 
 tion in Rochdale," a work which was widely read, and thus ex- 
 erted an important educational influence in behalf of co-operative 
 progress. 
 
 In 1862 the number of societies in Great Britain was esti- 
 mated at 450 ; their estimated membership being 90,000 ; their 
 share and loan capital, 450,000; their annual sales, 2,350,- 
 000 ; and their profits, <166,000. In this year parliamentary 
 returns were first made to the Registrar, and thereafter annual 
 statistical statements were presented. 
 
 The Industrial and Provident Societies Act of 1862 gave co- 
 operative societies a corporate existence, and permitted one 
 society to hold shares in another. This gave the requisite legal 
 basis for the formation of co-operative wholesale societies, which 
 are federative associations, their capital being in shares held 
 by the societies composing the federation. Such an institution 
 had long been needed to render the independence of the retail 
 stores more complete, to allow them to disregard the jealousy 
 of rival traders who exerted their influence against them with 
 private wholesale dealers, to enable them to secure supplies of 
 undoubted purity, and, while utilizing the surplus capital accu- 
 mulating in their hands, to permit them to save to themselves 
 the profit arising in the wholesale trade. 
 
 After much discussion the English Co-operative Wholesale 
 was established in 1864, with a capital of ,999, which was soon 
 largely increased. Attempts at wholesale co-operative distribu- 
 tion had previously been made, but never upon the broad plan 
 now adopted. Such attempts had failed. The scheme now de- 
 vised was perfectly logical. It was in principle simply an 
 extension of the plan upon which the retail business had been 
 conducted. The relation of the retail societies to the whole- 
 sale is exactly analagous to the relation existing between indi- 
 vidual members and the retail, and will be more fully explained 
 hereafter. We are now dealing with the history rather than 
 
20 A MANUAL OF 
 
 the economics of the movement. The Scottish wholesale was 
 founded in 1868. The formation of these wholesale societies 
 marks an epoch in the progress of co-operation, and established 
 the commercial autonomy of the co-operative organization. 
 
 From time to time experiments in co-operative production 
 were made, which, in accordance with our plan, we shall here 
 disregard, presenting their salient points later, and for the 
 present confine ourselves to co-operative distribution. 
 
 In 1869 a central co-operative board was formed and annual 
 congresses composed of delegates from the societies represented 
 in the board have since been held. The Central Board at first 
 consisted of two sections, the London and the provincial, but 
 was afterwards organized as a Union composed of representa- 
 tives from six districts or sections, and sustained by annual 
 subscriptions from the societies. This Union, in conjunction 
 with the congresses, exerts a strong cohesive force upon the 
 societies, and also becomes an efficient agent in propagandism. 
 To operate especially in the latter direction the Southern Co- 
 operative Guild, having its headquarters in London, was formed 
 in 1877. 
 
 The unity of action secured among co-operators by the 
 organization described proved of the utmost value. The annual 
 discussion in the Congresses of matters of peculiar interest, 
 and the union of delegates from sections widely separated but 
 engaged in the same work and actuated by similar motives, 
 gave the movement a vitality it previously lacked and materially 
 aided its growth and prosperity. 
 
 Since 1860 a newspaper organ of co-operation has been main- 
 tained. This is now owned by the societies. 
 
 Before closing this historical review it is proper to notice a 
 distinct branch of co-operative distribution in Great Britain, 
 .that conducted by societies on the so-called civil service plan. 
 There are several of these, the largest in point of sales being 
 the Civil Service Supply Association, and the Army and Navy 
 Society, of London, the latter differing only in having been 
 founded by officers of the army and navy instead of by em- 
 ployes in the civil service. 
 
 In reality these societies are consumers' joint stock distribut- 
 ing agencies, dividing no profits on purchases, and selling, not 
 at the ruling market rates, as do the stores on the Rochdale 
 
DISTRIBUTIVE CO-OPERATION. 21 
 
 plan, but at the lowest prices consistent with the payment of 
 expenses arid a fair interest on capital invested. 
 
 The first association on this plan was formed in 1866, and 
 the movement, originated by government employes for their 
 mutual benefit, has made rapid progress. 
 
 The trade of' these associations is not confined to share- 
 holders, although profits are divided only on shares in the form 
 of interest on capital invested, nor do they attract the trade of 
 workingmen. They conduct a very extensive business at a low 
 expenditure for expenses, and are of great benefit to the classes 
 supporting them. The volume of their trade has been esti- 
 mated to bear a similar relation to their members' income that 
 the trade of the working class societies bears to their members' 
 income. Co-operation in London is confined to these societies, 
 except in a few outlying districts inhabited by workingmen. 
 
 The growth of the civil service societies was stimulated by 
 the success of the stores established on the Rochdale plan, and 
 while they have not adopted some of its vital features, and 
 have confined themselves to cheap buying and selling on the 
 joint stock rather than the co-operative basis, they still have 
 interests in common with the workingmen co-operators, and 
 three of these societies have joined the Co-operative Union. 
 The essential difference between them and the great body of 
 workingmen's societies will appear in our subsequent analysis. 
 As part of the general movement their work cannot be over- 
 looked in this review. 
 
 Speaking of the progress of co-operation since 1824 it has 
 been said : 
 
 " The record of these sixty years of co-operative work is a 
 record of work done under the influence of many different motives ; 
 but if it could be written out in full, it must contain the names of 
 many unselfish and earnest men, whose names were never knywn 
 beyond their own town, and even there may now have been for- 
 gotten. In the earlier days men were fettered by laws which pre- 
 vented their combined action, and there was little to protect them 
 against fraud. There were taxes on newspapers, few even decent 
 schools, no co-operative manuals or literature. Now all this is 
 changed." * 
 
 * Workingmen Co-operators, page 30. 
 
22 A MANUAL OF 
 
 To which it may be added that whereas in the early days the 
 theoretical or ideal side of co-operation was presented and the 
 practical insufficiently studied, it was only after co-operators 
 set themselves squarely at work upon the practical side of the 
 problem, availing themselves of the avenues easily open to 
 them, and gradually pushing out into wider fields of endeavor 
 as one obstacle after another was overcome, that success was 
 won. To-day while the ideal is not forgotten and leading co- 
 operators still look forward to heights yet unattained and to 
 the entire reorganization of all industry upon the co-operative 
 basis, still the effort appears to be to accomplish this through 
 the gradual expansion of the co-operative organization along 
 lines proved by experience to be safe, and not by any sudden 
 or radical change in the structure of society. The co-opera- 
 tion of the present, as represented in the discussions of the 
 congresses, is conservative as well as hopeful, practical rather 
 than ideal, and while full of faith in the future is inclined to 
 build upon sure foundations a structure whose stability is 
 definitely assured. 
 
 THE FOUNDATION IN LAW. 
 
 The legal basis of co-operation in the United Kingdom rests 
 at present upon the following statutes now in force : The In- 
 dustrial and Provident Societies Act of 1876 ; the Customs and 
 Inland Revenue Act of 1880 ; and the Provident Nominations 
 and Small Intestacies Act of 1883. 
 
 These Acts contain provisions for the formation of co-opera- 
 tive societies ; set forth the rights of such societies, and the 
 rights of their members ; and prescribe the duties to be per- 
 formed by the societies. 
 
 It is required that in the formation of a society application 
 shall be made to the registrar appointed by the government. 
 A separate registrar is provided for England and Wales, for 
 Scotland, and for Ireland. Blank forms of application are 
 furnished, specifying twenty distinct matters relating to the 
 conduct of the society's business, which must be incorporated 
 in its rules, two copies of which signed by seven persons and 
 the secretary, who are also to sign the application, must be 
 forwarded with the latter to the registrar. 
 
DISTRIBUTIVE CO-OPERATION. 23 
 
 After registration the society becomes a body corporate, may 
 sue and be sued, and may hold and deal with any kind of prop- 
 erty, including shares in other societies and companies and 
 real estate to any amount. 
 
 The rules of a society bind its members, notwithstanding 
 they may have signed no assent to them. The rules may be 
 amended in the manner originally provided for such amend- 
 ment, but any amended rule must be registered. Application 
 for such registration must be made upon a form supplied by the 
 registrar, and a fee of 10s. is charged. 
 
 A society may sue its members. It may make a contract, 
 and a contract made by it is binding as if similarly made by an 
 individual, and when made under its seal, or by a writing 
 executed by a person authorized to sign in its behalf, or 
 verbally by one duly authorized to speak for the society. 
 
 Any or all of its shares may be made withdrawable. It may 
 carry on any trade, except banking, including trade in real 
 estate. It may apply its profits in accordance with the pro- 
 visions contained in its rules. 
 
 It may, if the rules so provide, receive money on loan from 
 any one, to an amount limited by its rules, or it may accept 
 deposits, limited to 5s. in any payment, and to 20 for any 
 depositor, payable at not less than two days' notice. 
 
 It may also, if its share capital is not withdrawable, carry 
 on the business of banking. 
 
 It may make loans to members on real or personal security. 
 It may also invest on the security of other societies or com- 
 panies, save those only where liability is unlimited. 
 
 It is exempt from the payment of income tax on profits, 
 provided the number of its shares is not limited by its rules or 
 practice. 
 
 It may, by procedure duly set forth in the Act, unite with 
 any other society, or may acquire the business of any such 
 society, or may change its organization into that of a company. 
 
 It may provide the mode of settlement of disputes that may 
 arise between itself and its officers or members. 
 
 A society may dissolve itself by an instrument signed by 
 three-fourths of its members, or dissolution may be effected by 
 a three-fourths vote at a general meeting called for the special 
 purpose. If such dissolution be voluntary the resolution must 
 
24 A MANUAL OF 
 
 be confirmed at a second meeting, but if on account of debts, 
 the action of the first meeting is sufficient.^ 
 
 If the society is in dissolution on account of debt, hostile 
 proceedings to seize the property may be stayed. 
 
 Minors, if not under the age of 16, may become members, 
 and may act as if of full age, but cannot hold office. 
 
 Members are not liable individually for the society's debts, 
 and their liability in any event is limited to the amount remain- 
 ing unpaid on shares legally theirs, or which they have agreed 
 to take. They are not liable for debts contracted subsequent 
 to transfer or withdrawal of the shares held by them ; nor for 
 debts existing at date of such transfer or withdrawal, unless 
 the other assets are insufficient to meet the liabilities of the 
 society. 
 
 The number of shares permitted to be held by an individual 
 or company may be fixed by the rules but must not exceed in 
 the total the nominal value of 200. The number of shares 
 permitted to be held by a society is unlimited, and likewise 
 there is no limit to the amount which may be received as a 
 loan from an individual or company, except the limit, if any, 
 fixed by the rules. 
 
 A member may by instrument duly recorded nominate the 
 persons who shall take his investment in the society at his 
 death, provided at the latter event this investment in loans, 
 deposits, or shares does not exceed 100, and a nomination 
 may be varied or revoked. If no nomination subsists in the 
 event of a member dying intestate, the committee of manage- 
 ment become administrators of the fund. 
 
 Whenever upon the death of a member his investment exceeds 
 80 the Commissioners of Inland Revenue are to be notified. 
 
 Upon application to the registrar members may secure an 
 official investigation into the affairs of the society. 
 
 Every society must have a registered office with its name 
 conspicuously displayed outside. A change of location must 
 be at once reported to the registrar. It must have an en- 
 graved seal bearing its name, must have its accounts audited 
 at least annually, and a copy of its last balance sheet and 
 auditors' report must be constantly displayed in its office. An- 
 nual returns of its affairs must be. made to the registrar, and a 
 copy furnished, when applied for, to all interested parties. 
 
DISTRIBUTIVE CO-OPERATION. 25 
 
 Its books may at any time be inspected by any one interested 
 in its funds. 
 
 Special returns are required if the society conducts a bank- 
 ing business. 
 
 Copies of its rules must be supplied by every society to any 
 applicant, at a price not more than one shilling. 
 
 The duties set forth in the act must be performed by the 
 society under penalties. These penalties affect the society and 
 its officers and vary from 1 to 50, and are in some cases 
 cumulative during the time the neglect continues. 
 
 THE RETAIL STORE. 
 
 The unit of the co-eperative organization is the retail store. 
 In starting such a store in a new district in Great Britain it is 
 considered desirable to make use of the advice of the Co-opera- 
 tive Union. At the present day its work has become so sys- 
 tematized through experience that its help is of great benefit to 
 the unpracticed co-operator. It has prepared model rules for 
 the administration of co-operative societies which are in har- 
 mony with the requirements of the English law, and it is ready 
 at all times to aid every new enterprise by showing those in- 
 terested every thing essential to the successful establishment of 
 a store. 
 
 FIRST STEPS. 
 
 In the first place, after a few persons have become im- 
 pressed with the advantages of co-operative distribution, and 
 have determined to found a society, a meeting is usually held 
 to awaken public interest and to secure members. Speakers 
 may be obtained from the Co-operative Union or from the 
 Southern Co-operative Guild. The advantages of co-opera- 
 tion are explained and every effort made to stimulate interest 
 in the movement. An informal organization is effected, col- 
 lectors appointed, and the work of securing the required 
 capital begins. 
 
 CAPITAL. 
 
 The co-operative scheme rests on the basis of cash payments. 
 The outfit and goods are bought for cash and no sales on credit 
 ought to be allowed. Considerable capital, therefore, must be 
 paid in before the store opens. The amount to be raised and 
 
26 A MANUAL OF 
 
 the number of members to be secured before business is begun 
 will depend on circumstances. It is considered that 100 mem- 
 bers, with 130 capital, and a guaranteed trade of from 40 
 to 50 per week are required to ensure expenses and a divi- 
 dend if the store is to be constantly open. But the beginning 
 may be much more humble. The store may be open only at 
 certain times, for instance, evenings, or on particular days in 
 the week, thus reducing the expense of a storekeeper by em- 
 ploying only a portion of his time. A member who is other- 
 wise employed may, if capable, serve as storekeeper in the 
 evening, or a member's wife may be selected for the position. 
 It is deemed essential that, however established, the store 
 should depend for its prosperity on the support of actual mem- 
 bers, and not rely upon loans or gifts from those who may have 
 a sentimental interest in the scheme. The trade of some mem- 
 bers may at first be limited. If in debt to private traders they 
 cannot at once transfer their entire patronage to the co-opera- 
 tive store. Slowly they may by economy extinguish their 
 debt and increase their trade. An independent beginning of 
 the store, no matter how humble, and a gradual expansion as 
 business increases is always advised. 
 
 SHARES. 
 
 The number of shares held by each member may be not less 
 than one nor more than 200, the value of each share being 1. 
 A fixed rate of interest is paid on capital invested, usually five 
 per cent, and members are encouraged to leave undrawn the 
 dividends accruing on their purchases, such undrawn dividends 
 being added to the capital, thus permitting an increase of the 
 business. The store in this way performs the functions of a 
 savings bank of deposit, thrift on the part of members is stim- 
 ulated, and while on one hand the evils of debt are prevented 
 by adherence to the rule of cash payments, on the other mem- 
 bers form the habit of saving, by the inducement offered to 
 allow their dividends to go on deposit at a fair rate of interest. 
 
 NATURE OF SHARE CAPITAL. 
 
 To determine the nature of the share capital, that is, whether 
 it shall be withdrawable or only transferable, opens an import- 
 
DISTRIBUTIVE CO-OPEKATION. 27 
 
 ant question which the new society must meet and settle. Its 
 bearings are considered in the following : 
 
 " In the general rules three cases are provided for: first, 
 where all the shares are to be withdrawable ; second, where they 
 are all to be transferable ; third, where some are to be transferable 
 and some withdrawable. In the early days of co-operative societies 
 the law compelled them to make their shares withdrawable. The 
 early societies were accordingly all formed on this principle ; and 
 the large majority of those formed after the alteration of the law, 
 when shares were allowed to be made transferable in the case of 
 joint stock companies, followed the example of their predecessors. 
 Cases, however, have occurred where rumors have been spread as to 
 the solvency of such a society ; a run has taken place upon their 
 funds, the more selfish members seeking to secure themselves from 
 sharing in any loss, careless of the result to their fellow members ; 
 and the society, having almost all its capital locked up in buildings, 
 fixed stock and trading stock, has had to stop payment, though per- 
 fectly solvent, so as to gain time to realize its assets. Some of 
 the older societies, hampered by the fact of their members hav- 
 ing become accustomed to withdrawable shares, have met this dif- 
 ficulty by altering their rules, and making a portion of their capital 
 transferable. 
 
 It is, however, generally considered among co-operators that in 
 the case of new societies it is much the best plan to make all the 
 capital transferable. To meet the case of members leaving the 
 locality, or wishing to draw out a part of their capital in order to 
 provide for any given expenditure, as in the case of illness, you 
 should have a rule, such as is given in the model rules above-men- 
 tioned, enabling the committee to purchase the shares of members 
 at a price not exceeding their par value, i. e., the sum paid up on 
 them. In this manner the capital becomes in fact withdrawable, 
 except in the one case of a panic as to the financial position of the 
 society, in which case it is only fair that, if there be any ground for 
 alarm, all the members should share equally in any loss sustained. 
 You may also very well have a rule empowering the committee to 
 take money on loan from members, after they have contributed some 
 definite amount to the share capital, to be withdrawable on demand, 
 or after so many days' notice, according to the amount withdrawn." * 
 
 Many co-operators think that the matter is best settled by 
 
 * Walter Morrison, Esq. Village Co-operative Stores (Co-operative Board Pamph- 
 lets). 
 
28 A MANUAL OF 
 
 making every member have one non-withdrawable transferable 
 share of 1, and let his remaining shares, which he acquires 
 through undrawn dividends or by other investments, be with- 
 drawable. * 
 
 PAYMENT OF SUBSCRIBED CAPITAL. 
 
 Not all the money subscribed for shares need be paid up at 
 once. It is usual to make payments at the rate of 3d. per 
 week. In some societies subscribers do not acquire full mem- 
 bership until an entire share or even several shares have been 
 paid for in full. In general, however, after a shilling has been 
 paid in members are allowed to have full privileges. Con- 
 cerning this matter, Mr. Morrison, in the pamphlet already 
 quoted, says : 
 
 u Urge your members to pay up their shares in full if they can, 
 in order to simplify your accounts. It may be useful to this end to 
 provide a special rule that no interest will be allowed on any sum 
 under 1,| so as to induce a member who may have 1 18s. invested 
 to pay up the balance of two shillings at once. You should also 
 adopt the provision in the general rules that no. dividend on pur- 
 chases shall be paid to any member until he has some definite sum, 
 to be fixed by a special rule, invested in the share capital ; all such 
 dividends being credited to him until this amount is made up. You 
 will require an average capital of 10 per member. If you can rely 
 upon the richer members contributing more than this sum, you might 
 fix the minimum amount which each member must invest at perhaps 
 5." 
 
 KEGISTRATIOET. 
 
 Before beginning business the society must be registered at 
 the government registration office for industrial and provident 
 societies. No registration fee is charged. 
 
 THE EXECUTIVE COMMITTEE. 
 
 The selection of the executive committee is a matter of 
 scarcely less importance than that of raising the required capi- 
 tal. This committee appoints the storekeeper and other em- 
 ployes, controls the purchase of the stock in trade, overlooks the 
 finances of the society, and is, in fact, entrusted with the entire 
 supervision of its affairs. The nature of these duties suggests 
 
 * AVorkingmen Co-operators, page 36. 
 
 t Or, more explicitly, on any fractional part of a , thus supplying a motive to cause 
 subscribed capital to be fully paid up. 
 
fUKlVERSITY)) 
 
 DISTRIBUTIVE CO-OPERATION. 
 
 ^4JlPO]^ 
 
 the care that ought to be taken in selecting the men who are to 
 perform them. The success of the society will largely depend 
 on the efficiency and honesty of the committee. It may con- 
 sist of from seven to twelve members who are usually elected 
 at quarterly meetings, their terms of office being so arranged 
 that part of the committee goes out of office at each meeting, 
 or in some cases semi-annually or annually, although, as re- 
 spects this, many societies have no rule. Members of the 
 committee may or may not be eligible to re-election imme- 
 diately upon the expiration of their terms of office. Some- 
 times it is provided that a member after having served a certain 
 fixed time must retire for an interval before becoming eligible 
 again. Generally speaking, experience in the duties of the 
 office should count in favor of the retention of a committee- 
 man, and sweeping changes ought to be discountenanced. Of 
 course many things combine to determine the popularity of an 
 officer entrusted with the management of a society in which 
 many persons have a keen interest, and committees cannot 
 expect immunity from the adverse criticism which, however 
 undeserved, sometimes affects this popularity. On the other 
 hand, members who desire the welfare of the society ought to 
 be careful that grievances of r a purely personal or petty nature 
 do not blind them to the recognition of what is, on the whole, 
 a faithful and conservative management of its affairs. Helpful 
 criticism i-s always to be desired, and adds to the efficiency of 
 the committee and promotes the society's interests. , 
 
 The President of the society is sometimes elected by the 
 members and sometimes by the committee. The Secretary and 
 Treasurer by the latter. Many societies dispense with a trea- 
 surer. Members of the committee are usually paid a small fee 
 for attendance at the weekly business meetings. 
 
 "It is most desirable, in fixing the scale of payment, to avoid 
 the likelihood of men trying to get on to the committee simply for 
 the sake of the fees. This is a danger to be carefully watched in the 
 co-operative movement. The work of its managing men (not its 
 paid officials, to whom it is a profession) should be that of volun- 
 teers, who are repaid in moderation for their expense or trouble, 
 and who will withdraw or resign their position at once, without a 
 moment's hesitation, on the score of money, if that is being done 
 of which they so strongly disapprove that they believe this to be the 
 
30 A MANUAL OF 
 
 right course. Otherwise they are not independent, and may tend to 
 get into the hands of men more powerful than themselves, who are 
 well aware that they will not resign if they can possibly help it. 
 From 6d. to 2s. a time for weekly committee meetings, and nothing 
 for sub-committees or adjourned meetings, is a common rule in a 
 moderate sized society." * 
 
 The Secretary, and the Treasurer, if there be one, furnish 
 security to the society for the proper performance of their 
 duties, either by deposit or bond, and are usually paid a salary 
 proportioned to the labor devolving upon them. 
 
 BUSINESS PREMISES. 
 
 The first duties which demand the attention of the committee 
 will be the selection of premises in which to conduct the busi- 
 ness of the store and the engagement of a storekeeper. As to 
 premises, conditions of eligibility, rental, etc., will affect their 
 decision. The aim, of course, is to make the store as con- 
 venient as possible to the majority of members. If the begin- 
 ning is to be quite humble the dwelling house of a member 
 may be selected as headquarters, and more extensive, and con- 
 sequently more expensive quarters taken as business expands 
 and the success of the movement becomes assured. 
 
 THE STOREKEEPER. 
 
 The storekeeper should be a man of unquestioned integrity 
 and, if possible, not only a believer in co-operation but of some 
 experience in co-operative trading. Now that co-operative 
 stores have multiplied a man possessing the latter qualification 
 is not hard to find if the committee exercises proper care and 
 especially if the aid of the Co-operative Union is sought. It is 
 considered undesirable rather than otherwise that a storekeeper 
 has been trained as a private trader. The average salary of a 
 storekeeper in English towns is about 25s. or 30s. a week 
 besides rooms and gas ; in country villages, 18s. to 25s. suf- 
 fices. 
 
 STORE FITTINGS. 
 
 The fittings of the store are of the usual sort common to 
 private stores of the same grade. The Wholesale Co-opera- 
 
 * Workingmen Co-operators, page 49. 
 
DISTRIBUTIVE CO-OPERATION. 31 
 
 tives provide these if required at a lower rate than they can 
 be bought for elsewhere. 
 
 STOCK IN TRADE. 
 
 Premises and fittings having been secured and a storekeeper 
 engaged, a stock of goods must be purchased, and here again, 
 as well as in the future purchase of supplies, the judgment of 
 the committee will be put to the test. The maxim that goods 
 well bought are half sold applies to co-operative as well as to 
 ordinary stores. It is also well understood, and so generally 
 practiced as to become the rule, that no adulterated or inferior 
 goods are to be allowed upon co-operative counters. No credit, 
 it will be remembered, is to be given purchasers, and stock in 
 trade is to be bought for cash upon the best terms. 
 
 Experience and the growth of the co-operative organization 
 has in these days provided helps for inexperienced committees. 
 The wholesales provide lists of articles such as are proper to 
 provide in starting a store, with quantities and prices of each. 
 The Co-operative Union in this as in other matters of detail 
 is ready to give advice. The co-operative literature affords 
 pamphlets upon the subject of purchases. Thus the path of 
 the unpracticed co-operator is not entirely dark and he is en- 
 abled to profit by the wisdom gained by his predecessors in 
 their unaided efforts during the earlier years of the co-operative 
 movement. 
 
 A store in the beginning usually confines itself to the staple 
 articles of groceries, and increases the variety of its stock as 
 the demand of its patrons warrants. Thus to ordinary grocer- 
 ies, hardware, tinware, crockery, etc., may first be added. 
 Ready made boots and shoes, dry goods of the staple sorts, 
 clothing, hats, caps, etc., are eventually supplied. As to the 
 latter articles greater care and experience in buying are, of 
 course, demanded, so as to avoid loss by depreciation owing to 
 change of fashion. 
 
 In some instances a department for making boots to measure 
 and others for custom tailoring and millinery have been suc- 
 cessfully incorporated. 
 
 A bakery forms a favorite and generally profitable branch of 
 English co-operative stores. Many fully equipped co-opera- 
 tive bakeries exist as departments of these stores and do a 
 
32 A MANUAL OF 
 
 large business. Butchering, also, has been tried, and with 
 some profit, but, as this requires greater experience and 
 trained judgment on the part of the buyers, and as greater 
 difficulty has been found in procuring efficient department 
 superintendents in this line than in the others mentioned, it 
 has not as yet been found equally successful. 
 
 The sale of coal, on the contrary, is common and profitable. 
 
 As to the advisability of conducting several departments 
 under one management, the following is to the point, and the 
 statistics give a glimpse at what has been accomplished : 
 
 u Speaking generally, ' make one department a success at a time, 
 keep the accounts of the departments separately, and publish the 
 profits of each department in the balance sheet,' would be the advice 
 of many co-operators. The number of the chief departments car- 
 ried on by societies is as follows : 1185 societies do business in 
 groceries and provisions ; 772 in drapery ; 715 in boots and shoes ; 
 333 in coal; 211 in butchery; 188 in baking; 185 in furnishing; 
 137 in hardware ; 76 in tailoring." * 
 
 In making purchases the normal conditions of supply and 
 demand should be strictly considered and, as a rule, all specu- 
 lative purchases avoided. 
 
 " The amount of stocks should usually not exceed the amount of 
 sales for three or four weeks in groceries ; for ten to fourteen days 
 in provisions ; for one month in bakery ; for three or four days in 
 butchery ; for ten to thirteen weeks in drapery, boots and shoes, 
 and furnishing." f 
 
 In sales the ordinary prices of the locality are charged, no 
 attempt being made to undersell private traders. It is not in 
 reduced prices but in division of profits that the purchaser 
 reaps his reward. 
 
 THE CHECK SYSTEM. 
 
 As dividends are to be declared on purchases arrangements 
 must be made for registering the latter and enabling each cus- 
 tomer to prove quickly the amount of his purchases in order to 
 collect his share of profits. This is accomplished quite simply 
 
 * "Workingmen Co-operators, page 68. f Ibid, page 43. 
 
DISTRIBUTIVE CO-OPERATION. 33 
 
 by giving each customer a check or token either of metal or 
 paper representing in amount the amount of his purchase. 
 These are retained and presented at the end of the quarter to 
 secure payment of the dividend. Members are from time to 
 time during the quarter required to exchange tokens of small 
 nominal value for those of higher denomination, in order to 
 reduce the number of tokens of small denomination required in 
 circulation and to simplify matters generally. 
 
 In the use of these tokens fraud may occur, as, for instance, 
 employes have been known to purloin them and afterward 
 secure their presentation through an accomplice for exchange. 
 On the other hand, purchasers have held them back for pre- 
 sentation during a quarter subsequent to that in which they 
 were issued, and when the dividend happened to be larger, 
 thus unfairly sharing in a larger division of profits than was 
 justly their right, besides disarranging the accounts of the 
 society. 
 
 The paper checks may be so made as to guard against the 
 latter evil by changing the color in each quarter, but the paper 
 checks may have their nominal value increased by fraudulent 
 alteration of the amounts borne upon them. 
 
 Great care is needed to ensure against corrupt use of the 
 checks, and the ideal check system has yet to be devised. 
 
 Various methods are employed to check the operations of the 
 manager and to discover the amount of cash passing through his 
 hands. The system of dividend tokens just described affords a 
 partial check, but, for the reasons stated, fraudulent use of the 
 tokens may render this sort of checking nugatory, and, if relied 
 on, cause a perfectly honest manager to be unjustly suspected. 
 Among other plans one is "giving the customer a ticket, who 
 takes it to a boy, who gives metal checks in exchange and 
 registers each shopman's sales." This is of course applicable 
 to the larger stores only. No absolute check upon the mana- 
 ger's operations has yet been devised. The best safeguard is 
 the watchfulness of the committee. A dishonest manager can- 
 not long retain his place if the duty of the committee is well 
 performed. 
 
 DUTIES or MEMBEKS. 
 
 The matters of detail to which we have alluded having been 
 attended to, the store is now ready to open its doors for trade. 
 
34 A MANUAL OF 
 
 All, whether members of the society or not, are welcomed, and 
 non-members are permitted to share in the profits, but not to 
 the same extent as members, it being usual to allow them but 
 one-half the regular dividend. It is always desirable to induce 
 non-members to join the society, and sometimes a full dividend 
 is given them, one-half being paid in cash on demand, and the 
 balance credited to a share account in their name, thus in time 
 creating a deposit sufficient in amount to create them full mem- 
 bers. 
 
 The business of the society, now that the store is in active 
 operation, will depend upon the fidelity with which members 
 patronize it, refusing, as they should, to be drawn away by the 
 insidious solicitations of private tradesmen, who frequently 
 attempt to undermine co-operative stores by cutting prices, 
 offering liberal credit, running special lines of goods at cost 
 prices, and by other devices contrived to lure co-operative cus- 
 tomers into their shops. 
 
 These attempts are likely to be more effective in the infancy 
 of the co-operative store than later, for the participation in 
 profits soon teaches the thoughtful patron of co-operation that 
 his position as a partner is of more benefit to him in the end 
 than any temporary gain which he may appear for the moment 
 to reap by purchasing at under-rates elsewhere. 
 
 But if the store is to be thoroughly prosperous each member 
 must do more than merely give to it his trade. He must take 
 a deep interest in its affairs, must exercise a watchful supervi- 
 sion over its administration, attend the business meetings, par- 
 ticipate in the election of officers, carefully study the financial 
 reports, or balance sheets so-called, issued quarterly,* and 
 teach himself to criticise intelligently the policy pursued by 
 the committee who are his servants in immediate control of the 
 enterprise. 
 
 At the business meetings all members have equal voting 
 power, so that the society in its organization is thoroughly 
 democratic. Women, too, are usually eligible to membership 
 on the same terms as men, and in some cases have been given 
 places upon committees. 
 
 Besides the quarterly business meetings it is usual to hold 
 
 * Or semi-annually if dividends are thus declared. 
 
DISTRIBUTIVE CO-OPERATION. 35 
 
 monthly meetings at which it is customary to read the minutes 
 of the 'meetings held weekly by the committee, and discussion 
 is permitted thereon. Social gatherings of the members are 
 also held annually, or even more frequently, as a means of 
 welding together more' firmly the interests of all who are con- 
 nected with the movement. 
 
 STOCK-TAKING AND AUDITING. 
 
 Account of stock is to be taken quarterly or half-yearly and 
 profits divided, and this should be carefully and honestly done, 
 with no attempt at over-valuation or desire to increase the 
 dividends beyond the percentage fairly earned. Accurate 
 bookkeeping is essential to the pecuniary welfare of the society, 
 and a " Manual of Bookkeeping," giving full advice upon this 
 head, has been published by the Co-operative Union. 
 
 The Union has also published a " Manual of Auditing." 
 Great responsibility rests upon the auditors, who are to make 
 a complete examination of the society's affairs and who are to 
 assure themselves that the balance sheet is correct, and to vouch 
 for it by their signatures. They ought to be men familiar with 
 accounts and, if possible, of some financial experience. 
 
 u An inexperienced auditor will do well to act on the following 
 hints. Ascertain that stock has been carefully taken and checked. 
 See that everything is priced at the cost, or a less value, and that all 
 deteriorations of stock have been amply provided for. Count the 
 cash in hand. See that proper vouchers have been received for all 
 payments ; and if not sufficiently master of bookkeeping to adopt 
 short systems of check, by comparing the totals of different ac- 
 counts, check every individual item from its first entry until placed 
 in the balance sheet. Compare the members' pass books with the 
 ledgers. See that the total of the members' accounts agrees with 
 the amount placed in th# balance sheet. Ascertain that all goods 
 received and taken into stock are duly paid for, or else taken as a 
 liability, and also that all sums due by the society to merchants and 
 others are taken as liabilities. The best plan is to send a circular 
 note at stock-taking to all persons the society does business with, 
 asking them to advise the auditors what sums are due to them by 
 the society. Examine the committee's minute book, to see that all 
 
36 A MANUAL OF 
 
 expenditure has been duly authorized, and inspect the deeds and 
 other securities of the society."* 
 
 The auditors may be of such number as the society may 
 direct, usually two. Provision is made for the appointment 
 of a public auditor in lieu of auditors elected by the society. 
 No employe of the society is eligible to the office of auditor. 
 Auditors are paid such remuneration as may be voted them at 
 ordinary business meetings. 
 
 Any member or person in interest has an individual right of 
 inspection of the accounts of the society under proper regula- 
 tion, but is not permitted, without special authorization, to 
 inspect the loan or deposit account of any other member with- 
 out the latter's written consent. 
 
 In certain contingencies it is provided that the affairs of the 
 society shall be examined and reported upon by inspectors 
 appointed by the government registrar. The government 
 requires annual returns to be made from every society, con- 
 taining a general statement of its receipts, expenditures, funds, 
 
 and effects. 
 
 ALLOTMENT OF PROFITS. 
 
 The model rules provide for the following allotment of 
 profits : (1) Interest on loans, deposits, and preferred shares, 
 if any ; (2) Reduction of the value of fixed stock and plant 
 at such rate as the society may direct (subject to change by 
 the society at the annual rate of ten per cent on fixtures, and 
 of two and one-half per cent on buildings) ; (3) Reduction of 
 expenses, if any, incurred in forming the society ; (4) Divi- 
 dend on share capital ; (5) Reserve fund ; (6) Educational 
 fund; (7) Congress fund; (8) Social fund; (9) Dividend on 
 purchases and bonus to employe's. 
 
 The second item in the foregoing list relates to the amount 
 written off at each stock-taking to allow for the depreciation in 
 value of fixtures and buildings owing to wear and tear. There 
 is a temptation to neglect this as any amount so charged de- 
 creases the amount of net profits, and consequently reduces the 
 dividend. But prudent management requires this depreciation 
 to be conscientiously made in order that the assets of the so- 
 ciety may not be found over-rated if a financial panic should 
 overtake it. 
 
 * Workingmen Co-operators, page 60. 
 
DISTRIBUTIVE CO-OPERATION. 37 
 
 The third item is temporary only and confined to the early 
 years of the society. The fifth item provides for the establish- 
 ment of a reserve fund, the possession of which adds to the 
 financial stability of the society. Besides the allotment to such 
 a fund of a portion of the profits, usually ten per cent, all fines 
 are carried to it. The fund is applicable by resolution of the 
 society to the equalization of dividends, to meet contingencies 
 affecting the business of the society, or to any other purpose 
 which the general meetings may from time to time direct. The 
 income from the fund is used to increase dividends in the same 
 manner as other income of the society. 
 
 The application of a portion of the profits to educational, 
 social, and benevolent purposes, contemplated by the sixth and 
 eighth items, is always considered to be in harmony with the 
 underlying principles of co-operation. Many societies apply 
 two and one-half per cent of the profits to educational purposes, 
 such as technical classes, maintenance of library and reading 
 room, etc. Others neglect the matter altogether, although it is 
 always advised by leading co-operators. . 
 
 The Congress fund mentioned in the seventh item provides 
 for paying the annual subscription to the Co-operative Union 
 or to any official organ recognized by the Congress. 
 
 The practice of allowing employes to share in profits by 
 means of a bonus, provided for in the second clause of the 
 ninth item, would seem to be clearly in accord with co-opera- 
 tive principles, but, although some societies practice it, it is 
 not generally popular. When given it may be said to be 
 awarded on the ground that if employes share in this way they 
 will take a livelier interest in the society's welfare, and thus 
 the bonus will be money well expended in that it will in reality 
 tend to increase profits. Except in theory, the practice does not 
 seem to rest upon the abstract justice involved in the principle 
 of awarding to all who co-operate in producing a given result 
 a share in the benefits obtained. This principle would seem 
 to demand the admission of all employes to an interest in the 
 business, but it appears to be self-interest purely that induces 
 most of the societies that have adopted this plan to pursue it. 
 At present, profit sharing with employes, although nearly always 
 advocated as a matter of theory, is not extensively practiced 
 among co-operative trading societies. 
 
38 A MANUAL OF 
 
 THE BALANCE SHEET. 
 
 The balance sheet issued to members forms a complete 
 report of the financial status of the society. Members rely 
 upon it for their knowledge of the society's affairs. It should 
 show clearly, and in as simple a form as possible, so as to be 
 readily understood by the average man, the cash account of 
 the society, giving its cash assets and receipts upon one side, 
 and its liabilities and cash expenditures upon the other. The 
 trade account should also be shown, giving upon the debit side 
 the value of stock at beginning of quarter, amount of subse- 
 quent purchases, with expenses and outstanding liabilities, if 
 any, for purchases, and on the credit side the amount of sales 
 liabilities at beginning of quarter, value of stock at end of 
 quarter, etc., the balance of the account showing the net profit. 
 The expense account should be shown in detail, and a concise 
 summary of the capital account should appear, giving the assets 
 and liabilities in detail, followed by a detailed statement of the 
 disposal of profits. The balance sheet ought to be published 
 several days before the general meeting, so as to give members 
 an opportunity to study it and compare it with former issues, 
 that they may be able to criticise it, if need be, and to question 
 it intelligently at the meeting. 
 
 SUMMARY OF ESSENTIAL POINTS. 
 
 We have now given such a description of a retail distributive 
 society as will, we believe, enable the reader to understand how 
 such a society is formed and carried on. Besides the points we 
 have mentioned the model rules contain provisions for settling 
 by arbitration disputes arising between a member or any inter- 
 ested person and he society or an officer thereof; for expelling 
 any member who may be guilty of conduct detrimental to the 
 society and for the payment to such a member of the sums 
 paid in on shares held by him ; and the necessary provisions 
 for conduct of business, transfer of stock, change of name 
 of society, etc. 
 
 We now present the following summary of essential points 
 and causes of success and failure, for which we are indebted to 
 the manual entitled " Workingmen Co-operators." We find 
 them nowhere else so succinctly stated. 
 
DISTRIBUTIVE CO-OPERATION. 39 
 
 ^Essential Points, (a) The store is open to all; (b) charges 
 ordinary market prices ; (c) receives ready money only, and gives 
 no credit ; (d) gives dividend in proportion to purchases ; (e) every 
 , member must have a share or shares, and receives good interest on 
 them ; (/) all are equal in voting power, whether they have 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 an 
 active committee ; (i) the society insists on an efficient and intel- 
 ligent 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) com- 
 petent and painstaking officers ; (3) competent and trustworthy em- 
 ployes ; (4) proper security for the honesty and efficiency of the 
 principal employes ; (5) amicable and earnest working together ; 
 (6) promptitude and punctuality in business ; (7) impartiality, 
 civility, and pleasant manners in the members and in the staff ; 
 (8) generous treatment of the employes ; (9) judicious purchasing 
 and careful regulation of the stocks ; (10) ready money purchases 
 and ready money sales; (11) carefully regulated expenses; (12) 
 judicious investment of all surplus capital ; (13) ample deprecia- 
 tion of property ; (14) ample reserve funds ; (15) good bookkeep- 
 ing and auditing ; (16) officers giving full and free explanations to 
 the members' meetings ; (17) members having full confidence in the 
 officers. 
 
 Causes of Failure. (1) Allowing the storekeeper to do as he 
 likes ; (2) allowing credit to purchasers ; (3) bad bookkeeping and 
 auditing ; (4) bad rules ; (5) carrying repairs and renewals to prop- 
 erty account instead of expenses account ; (6) competing with all 
 the 'cutting' shops; (7) expenses too great for the business ; (8) 
 employment of incompetent persons ; (9) dishonesty ; (10) injudi- 
 cious purchasing; (11) injudicious and frequent changes of policy; 
 (12) members purchasing away from the store; (13) not taking 
 ample security from persons in a position to misapply the society's 
 effects ; (14) permitting the manager to buy away from the whole- 
 sale societies ; (15) inefficient officers ; (16) members being unreas- 
 onable and quarrelsome; (17) purchasing goods on credit; (18) 
 overbuilding; (19) starting branches or new departments before the 
 society is strong enough to bear the burden ; (20) waste behind the 
 counter from bad stock keeping or careless weighing." 
 
 THE WHOLESALE STORES. 
 
 The success and multiplication of retail stores suggested the 
 propriety of establishing a central purchasing agency or whole- 
 
40 A MAJSTUAL OF 
 
 sale depot. The benefits which it was expected would be 
 derived from such an institution, and which have been largely 
 realized, were, among others, the following : 
 
 " Stores will be enabled, through the agency, to purchase more 
 economically than heretofore, by reaching the best markets. 
 
 Small stores and new stores are at once put in good position, by 
 being placed directly (through the agency) in the best markets, thus 
 enabling them to sell as cheap as any first-class shopkeeper. 
 
 As all stores will have the benefit of the best markets by means of 
 the agency, it follows that dividends paid by stores must be more 
 equal than heretofore, and, by the same means, dividends will be 
 considerably augmented. 
 
 Stores, especially large ones, will be able to carry on their busi- 
 nesses with less capital. Large stores will not, as now, be necessitated, 
 in order to reach the minimum prices of the markets, to purchase 
 goods they do not require for the immediate supply of their mem- 
 bers. 
 
 Stores will be able to command the services of a good buyer, and 
 will thus save a large amount of labor and expense, by one pur- 
 chaser buying for some 150 stores, while the great amount of blun- 
 dering in purchasing at the commencement of a co-operative store 
 will be obviated." * 
 
 In our historical review we have mentioned the unsuccessful 
 experiments which preceded the establishment of the English 
 Co-operative Wholesale in 1864. It is not necessary to elabo- 
 rate these experiments. They failed, partly because the co- 
 operative movement had not become sufficiently strong to 
 sustain such an institution, and partly on account of defective 
 business principles embodied in their administration. The 
 great success of the existing English wholesale and of the 
 Scottish wholesale, established at a later date, is sufficient to 
 commend the plan upon which they are organized to those 
 desiring to found a similar enterprise elsewhere, and we there- 
 fore give a detailed description of its features. 
 
 In its organization the English wholesale is a federation to 
 which none but co-operative societies are admitted. Such an 
 organization presupposes the existence of retail associations 
 for whose benefit the wholesale society is formed. At first 
 
 * Co-operative Annual, 1885 ; page 70. 
 
DISTRIBUTIVE CO-OPERATION. 41 
 
 each retail society in joining the wholesale subscribed capital 
 in the proportion of one share to each of its members, the value 
 of each share being 5s., the same being transferable, one shil- 
 ling to be paid up on each share at time of subscription and 
 interest and dividends to remain undrawn until balance of capi- 
 tal subscribed is paid up. 
 
 In 1871 the value of shares was changed to 5, and the 
 number of 5s. shares decreased accordingly. Societies were 
 now required to take up one share to each twenty members, 
 and in the following year this provision was changed to one 
 share to ten members. 
 
 It was at first proposed to sell goods at cost, with a small 
 commission added to cover expenses. This was soon aban- 
 doned as impracticable, and a plan identical with that adopted 
 in the retail stores was substituted, goods being sold at a profit, 
 and all net profits divided among purchasers in proportion to 
 purchases. As in most of the retail stores, non-shareholding 
 purchasers are allowed one-half the dividend given to share- 
 holders. 
 
 Business was begun in 1864 at Manchester, where the cen- 
 tral offices are now located. The growth of business led to the 
 establishment of main selling branches at Newcastle, in 1871, 
 and at London, in 1874, and sub-branches at Leeds, in 1882, 
 and at Bristol, in 1884. 
 
 Buying branches, also, have been established at Tipperary, 
 Killmallock, Limerick, Armagh, Waterford, Tralee, and Cork, 
 in Ireland, for the purchase of Irish butter, an important sta- 
 ple, of which the wholesale society is the largest purchaser. A 
 purchasing branch, which is also a forwarding depot, is main- 
 tained at Liverpool, a buying agency for American produce at 
 New York, N. Y., and purchasing agencies at Calais, Rouen, 
 Copenhagen, Hamburg, and a special agency for the purchase 
 of tea and coffee at London. 
 
 The society also conducts a shipping business, which owes 
 its origin to its extensive importations of foreign produce, much 
 of which it was desirable to obtain directly from the producers 
 and to secure its careful packing and prompt despatch. Four 
 steamers are now owned by the society, running regularly 
 between Garstow and Rouen, Goole and Calais, and Goole and 
 Hamburg. 
 
42 A MANUAL OF 
 
 The society also sustains a banking department on the usual 
 plan of such institutions. The profits of the banking depart- 
 ment are apportioned as follows : 
 
 " First. The customer who has a credit balance with the bank 
 will share in the profits on the earnings in proportion to the amount, 
 varying from a quarter to one per cent over the interest the cus- 
 tomer would get from the usual terms allowed by the ordinary 
 banker. 
 
 Second. The debit customers share in the profit too in a sim- 
 ilar way to the credit customer, on the amount of interest which is 
 paid on the debit balances of their account. 
 
 Third. A customer may be a credit and debit customer in the 
 same quarter, and would receive profits both as borrower and 
 lender."* 
 
 Besides dealing largely in groceries and provisions the so- 
 ciety manufactures biscuits, sweets, dry and soft soap, and 
 boots and shoes; and supplies drapery, hardware, carpets, 
 crockery, fancy goods, and general furnishings. It is the 
 selling agency of several co-operative productive societies 
 manufacturing dry goods, dress goods, ready made and or- 
 dered clothing, miscellaneous textiles, furniture, watches, ma- 
 chinery, etc. 
 
 Just as the retail stores are administered by a committee 
 chosen by members, so the wholesale, conducting the widely 
 diversified business that we have outlined, is governed by a 
 committee elected by ballot by delegates from the societies 
 composing its membership, each society being entitled to one 
 delegate to every 500 members or fractional part thereof, every 
 delegate having one vote. 
 
 The manner of conducting the wholesale business is analo- 
 gous to that of the retail. The general committee at Manchester 
 has 16 members. The London and Newcastle branches are 
 conducted by branch committees of 8 members each, respon- 
 sible to the general committee, and in the deliberations of the 
 latter represented by one delegate from each branch. As to 
 stock-taking, which is done quarterly, auditing, etc., the de- 
 
 * Co-operative Annual, 1885 ; page 16. 
 
DISTRIBUTIVE CO-OPERATION. 43 
 
 rfcription which we have given of the retail stores applies 
 equally to the wholesale. Four auditors are employed who 
 are elected by the shareholders, and paid an annual salary of 
 40 each, besides the allowance of second class railway fares. 
 Full quarterly balance sheets are published. A strong reserve 
 fund is maintained. The value of the property is written 
 down, or depreciated, at each stock-taking, at the following 
 rates: land, at 2| per cent; buildings, at 5 per cent; fixed 
 stock, at 7|- per cent ; all depreciations being taken upon the 
 original cost. All shares are transferable without charge, and 
 the society has a lien on all shares. 
 
 When societies desire to open an account with the wholesale 
 they are required to furnish a copy of their last balance sheet 
 and registered rules. If a balance sheet has not been issued 
 they are directed to state the number of their members, amount 
 of paid-up share capital, whether credit is allowed, and, if so, 
 to what extent, and the amount of business done or probable 
 amount which will be done by them. If not registered at time 
 of application but in process of being so, cash is required with 
 each order. After registration cash must be forwarded with 
 the first order, and on subsequent orders payment must be 
 made within seven days from date of invoice. An application 
 for shares from any society or company must be made by reso- 
 lution of some general or committee meeting of such society or 
 company, contained in writing and attested by the signatures 
 of the secretary and three members. The number of shares 
 to be taken by each society, as before stated, must be not less 
 than one to every ten members, and this number must be 
 increased annually as the number of members increases. The 
 liability of each shareholding society is limited to the amount 
 of its shares. Share capital receives interest at the rate of five 
 per cent per annum. 
 
 The administration of the Scottish wholesale is substantially 
 the same as that of the English wholesale, except that shares 
 therein may only be transferred with the consent of the com- 
 mittee and two-thirds majority of a special meeting of share- 
 holders, and that employes share in dividends in proportion to 
 wages at double the rate per pound that is allowed on mem- 
 bers' purchases. Shareholders have one vote each, and one 
 
A MANUAL OF 
 
 additional vote to each 500 purchases. Shares are 10s. each, 
 one shilling to be paid in on application. Both the English 
 and Scottish wholesale societies are authorized to carry on any 
 business. 
 
 The following statistical statement exhibits the financial 
 relations existing between the retail societies and the English 
 wholesale, by districts, for the year ending December 31, 1883, 
 the latest available : * 
 
 DlSTKICTS. 
 
 Number of 
 Members, 
 December 
 31, 1883. 
 
 TOTAL CAPITAL, DECEM- 
 BER 31, 1883. 
 
 CAPITAL INVESTED WITH 
 WHOLESALE SOCIETY, 
 DECEMBER 31, 1883. 
 
 Total sales 
 during year 
 
 Share. 
 
 Loan. 
 
 Share. 
 
 Loan. 
 
 Manchester, . 
 
 399,108 
 
 
 4,954,667 
 
 
 445,966 
 
 
 138,021 
 
 358,331 
 
 
 11,352,437 
 
 Newcastle, . 
 
 95,994 
 
 700,248 
 
 43,850 
 
 26,461 
 
 51,377 
 
 3,359,763 
 
 London, . 
 Totals, . 
 
 61,891 
 
 375,429 
 
 49,931 
 
 19,385 
 
 13,579 
 
 1,366,729 
 
 556,993 
 
 6,030,344 
 
 539,747 
 
 183,867 
 
 423,287 
 
 16,078,929 
 
 DISTRICTS. 
 
 PURCHASES FROM WHOLESALE SOCIETY DURING THE YEAR. 
 
 Percentage 
 of purchases 
 from Whole- 
 sale Society 
 on the total 
 sales. 
 
 Groceries 
 and 
 l*rovisions. 
 
 Drapery. 
 
 Woollen 
 Cloth. 
 
 Boots 
 and 
 Shoes. 
 
 Furniture 
 and 
 Hardware. 
 
 Total 
 purchases. 
 
 Manchester, . 
 
 
 
 2,445,804 
 
 134,076 
 
 
 15,416 
 
 
 
 81,372 
 
 
 31,851 
 
 
 2,708,519 
 
 23.9 
 
 Newcastle, . 
 
 860,277 
 
 87,773 
 
 14,319 
 
 52,953 
 
 12,747 
 
 1,028,069 
 
 30.6 
 
 London, 
 Totals, . 
 
 323,449 
 
 19,025 
 
 1,867 
 
 18,142 
 
 3,608 
 
 366,091 
 
 26.7 
 
 3,629,530 
 
 240,874 
 
 31,602 
 
 152,467 
 
 48,206 
 
 4,102,679 
 
 25.5 
 
 The inspection of the preceding table develops a curious 
 fact. Although the co-operative wholesale society is a federa- 
 tion composed of the retail associations, its capital being evolved 
 from shares taken up by the latter, yet a comparatively small 
 part of the supplies of the retail stores are purchased by them 
 from the wholesale. The table shows that during 1883 the 
 purchases from the wholesale society were but 25.5 per cent of 
 the total sales made by the retails. That is to say, although 
 
 Co-operative Annual, 1885. See note on page 73, post. 
 
DISTRIBUTIVE CO-OPERATION. 45 
 
 the fundamental principle upon which co-operative distribution 
 rests is mutual trade in such manner that profits may be saved 
 and equitably divided among the traders, yet when the asso- 
 ciations themselves become buyers they have not adhered to 
 this principle so far as to confine their purchases to the whole- 
 sale society founded by themselves for the express purpose of 
 carrying out more completely the fundamental co-operative 
 idea. The English and Scottish wholesales at present supply 
 only about one-third of the goods required by the retail stores. 
 
 Undoubtedly a certain percentage of the balance of purchases 
 made by the retails is made from other co-operative sources 
 besides the wholesales, such, for instance, as co-operative corn 
 (flour) mills in their immediate neighborhood, of which there 
 are a number in England, but after this is conceded it must 
 still be true that a large part of their purchases are made from 
 private traders. 
 
 The reasons for this apparent neglect of what would seem to 
 be the legitimate source of supply for the retail associations are 
 no doubt various, and do not plainly appear. That the success 
 which has attended the wholesales has abundantly justified their 
 establishment is uncontested, and it must be admitted that the 
 quality of the supplies furnished by them, like that of all sup- 
 plies distributed upon the co-operative plan, is above criticism. 
 It is, therefore, a little strange that no greater proportion of the 
 wholesale trade of the stores falls into their hands. Especially 
 is it strange, because this trade is altogether controlled by the 
 leading co-operators of the kingdom, in that it rests entirely 
 with the committees of the retail associations, who contend that 
 co-operation rests upon a principle of mutual help as well as 
 mutual pecuniary profit. If these representative bodies are, as 
 may be supposed, imbued with the ideal upon which the move- 
 ment rests, ought it not to be expected that in practice this 
 ideal would be adhered to more closely? 
 
 This disposition to look elsewhere than to the wholesales for 
 the purchase of supplies has, now that a considerable amount 
 of co-operative capital is invested in the latter, in part con- 
 tributed to an interesting phase of the co-operative movement. 
 
 In the first place, the general purpose of the co-operative 
 societies, as stated by an authority fully competent to speak 
 
46 A MANUAL OF 
 
 for them, is "that the business and the work done shall be 
 done not in the interest of, nor in order to enrich, one indi- 
 vidual, or a few, but in the interest of the general body of 
 those who are concerned."* Now it is apparent that whenever 
 purchases are made outside the co-operative wholesales a profit 
 which otherwise would be saved is paid to private traders. To 
 this extent, therefore, the general purpose, as above stated, is 
 disregarded. 
 
 But other results follow. Capital accumulates with the 
 wholesales to a greater extent than can be used in the ordinary 
 trade proceeding from the retail stores. To discourage the 
 investment of the surplus capital of the latter would discour- 
 age the thrift which is one of the' best outgrowths of the co- 
 operative system, inasmuch as it would at once turn back upon 
 the retail societies the savings of profits left in their hands as 
 undrawn interest-bearing dividends by their members, and leave 
 them with a surplus which ofttimes could not otherwise be profit- 
 ably used. 
 
 Considerable amounts of capital have thus from time to time 
 accumulated with the English wholesale which might have been 
 made available in distributive trade had the entire wholesale 
 trade of the societies been given to it. This surplus if depos- 
 ited in bank would, indeed, draw the usual rate of interest on 
 deposits, but would, of course, be loaned by the bankers in the 
 ordinary course of business at a much higher rate. Here 
 again, therefore, a profit would fall into the pockets of individ- 
 uals which ought to be saved to the co-operative membership, 
 and in this instance, as well as in every case where supplies are 
 purchased outside the wholesales, co-operative capital would be 
 used to benefit competitive trade. 
 
 This condition of affairs, soon perceived by those interested 
 in the extension of the co-operative idea, was instrumental in 
 engrafting upon the wholesale society, which until then had 
 attempted nothing beyond co-operative distribution, a system 
 of production. An avenue of investment was needed for the 
 investment of surplus capital, and it was desirable that this 
 capital, if possible, should be directed into co-operative chan- 
 
 * Messrs. Ackland and Jones. Workingmen Co-operators, page 9. 
 
DISTRIBUTIVE CO-OPERATION. 47 
 
 nels. Certain staple articles were in constant demand by 
 the retail associations. If such articles were purchased by the 
 wholesale to be re-sold to the retail stores, or if they were pur- 
 chased by the retail stores directly from the producers, com- 
 petitive trade was directly benefited. It was also desirable to 
 keep travellers for private firms out of co-operative stores, and 
 as far as possible equip the wholesale store with everything 
 needed by the retails. What more natural, therefore, than 
 that the wholesale society should undertake the manufacture of 
 such articles, using for that purpose the surplus capital accu- 
 mulating in its hands ? 
 
 To employ this capital in productive enterprises involved a 
 new departure, which was not undertaken without full discus- 
 sion. This discussion has not yet entirely ceased. It was held 
 then, and is still held, that the wholesale society should confine 
 itself to distribution and leave production to other organiza- 
 tions. If the wholesale were to engage in manufacturing it 
 would become a powerful and injurious competitor with small 
 and struggling productive societies, whom it ought rather to 
 aid by liberal loans of capital. Finally, both plans were 
 adopted. Large advances were made to productive com- 
 panies, and experiments were cautiously begun in co-operative 
 manufacturing under the direct management of the wholesale 
 society. 
 
 The first productive department opened was the manufactory 
 of biscuits, confections, and soap at Crumpsall, near Manches- 
 ter. From these works none but registered co-operative so- 
 cieties are supplied. The establishment is equipped with the 
 best machinery ; in the baking department flour from co-opera- 
 tive mills is used, and goods free from adulteration are pro- 
 duced. 
 
 The Crumpsall works were started in 1873. During the 
 same year a boot and shoe manufactory at Leicester was 
 founded, confined to light goods, and, in 1880, a factory for 
 the production of heavy boots and shoes was put in operation 
 at Heckmondwike in Yorkshire. More than 800 styles of 
 men's, women's, children's, and infants' shoes are produced at 
 Leicester, and both establishments make goods to measure 
 upon special orders. Nothing but genuine goods are made, 
 
48 
 
 A MANUAL OF 
 
 and paper or composition as a substitute for leather have never 
 been used. 
 
 Since 1874 the society has also carried on the manufacture 
 of soap upon a limited scale at Durham. 
 
 The productive departments conducted by the wholesale 
 society have been generally successful, as will appear from 
 the following table showing the average percentage of profit 
 on capital employed for the year ending September 22, 1883, 
 and also from the commencement of each department.* 
 
 DEPARTMENTS. 
 
 Percentage of profit 
 for year ending 
 September 22, 1883. 
 
 Percentage of profit 
 from commence- 
 ment of work. 
 
 Crumpsall, 
 
 22 
 
 13* 
 
 Leicester, 
 Durham, ....... 
 
 51 
 3i 
 
 ?1 
 31 
 
 Heckmondwike, 
 
 5f 
 
 loss 1 
 
 "The result is certainly not much to boast of in the shape of 
 direct profits, but it must be remembered that, in addition to the 
 usual difficulties of a new establishment in each case, the private 
 manufacturers who were already selling to the stores had to be dis- 
 placed, and that this could only be accomplished by goods of ster- 
 ling quality at low prices ; so that if the stores have not received 
 large dividends directly from the wholesale, their members have 
 benefited by the low prices at which sterling quality goods have 
 been supplied to them. And it is not a small thing to be able to 
 say that in a series of years which have resembled a prolonged 
 panic, when individual traders and joint stock companies have been 
 falling into bankruptcy on every side, no failure has occurred in any 
 of the direct adventures of the Wholesale Society ."f 
 
 The investments made in outside companies have not been 
 so successful, a loss of 52,057 being reported up to the year 
 1884 upon loans of this sort. 
 
 * Co-operative Annual, 1884. 
 
 f Dr. John Watts. Co-operative Annual, 1884. 
 
DISTRIBUTIVE CO-OPERATION. 49 
 
 The shipping enterprises of the wholesale have not returned 
 a direct profit, but the advantages of being brought into close 
 communication with foreign producers, and of being indepen- 
 dent of private ship owners, are thought to more than offset the 
 lack of direct financial returns. As a rule, however, as in the 
 productive departments, the investments wholly controlled by 
 the society have proved more profitable than those in which 
 the society had a partial interest only. The vessels owned by 
 the society have many times gained a profit while those char- 
 tered for its use from private owners have been sailed at a loss. 
 This is graphically shown by the record of the steamship "Cam- 
 brian," on the Goole-Calais and Goole-Hainburg lines, which 
 was sailed 33 voyages on charter at a total loss of over 553, 
 and was then purchased by the society, her subsequent 104 
 voyages returning a profit of more than 1455. The exten- 
 .sion of the shipping business is contemplated and it would not 
 be surprising if further productive enterprises were under- 
 taken. For capital still continues to accumulate faster than 
 trade increases. 
 
 u It is plain that if the Co-operative Wholesale is to increase and 
 flourish in the future as it has done in the past, it must find more 
 employment for its capital. In 1864 it turned over its capital 
 twenty-one times in thirty weeks. In 1874 its capital was turned 
 over fifteen times. In 1883 its capital is being turned over at the 
 rate of seven times in the year. If, in the two or three years prior 
 to the panic, its capital had been as fully employed for its own pur- 
 poses as it was from 1864 to 1870, the companies which depleted it 
 of 58,000 would never have sought advances, or if they had sought 
 would not have obtained them, for the wholesale would have been in 
 a position to say, u No, gentlemen, what you ask is beyond our 
 power." Capital, to be kept safely, must be kept at work. The 
 Wholesale neglects one of the most important duties laid upon it if 
 it ceases to be the depository of the savings of the stores, for then 
 it encourages the consumption of the quarterly dividends and con- 
 tributes only to the present enjoyment instead of to the permanent 
 welfare of its members. If, however, it receives money it must get 
 leave to employ it, and the modes of employment at present in the 
 powef of the Wholesale are few."* 
 
 * Dr. John Watts. 
 
50 A MANUAL OF 
 
 From the foregoing it will be seen that whatever difficulties 
 surround the administration of the co-operative stores the lack 
 of capital is not one. As the stores perform the functions of 
 savings banks of deposit a glut of capital becomes itself a dif- 
 ficulty not easily overcome in the absence of avenues of in- 
 vestment at once safe, remunerative, and in harmony with 
 co-operative principles. Although the number of shares which 
 may be held by one person is limited to 200, it is part of the 
 policy of the societies to encourage the investment on the part 
 of members of whatever savings they may be able to make in 
 any way out of their wages as loan capital, and if it could be 
 profitably used the capital of the stores might be indefinitely 
 increased. No question is more frequently discussed than this 
 of making the surplus capital productive. 
 
 STATISTICAL ABSTKACT. 
 
 The growth and present condition of the co-operative move- 
 ment may be presented statistically in four tables, which follow. 
 
 These tables are based upon the returns made to the regis- 
 trar, corrected by data in the possession of the Central Co- 
 operative Board. For their compilation in all years, except the 
 last, we are indebted to the Statistical Annual issued by the 
 Co-operative Wholesale Society, Limited. For the year 1883 
 we have used the abstract of the Registrar's returns contained 
 in the Report of the Central Board to the Congress of 1885. 
 The statistics include a few productive societies, viz : 38 in 
 1883, and the societies on the civil service supply plan, but 
 the larger part of the societies are distributive societies on the 
 Rochdale plan. A few are distributive societies supplying 
 special articles, such as bread, flour, coal, furniture, coffee, etc. 
 No land or building societies are included 
 
 Of the societies on the civil service plan in the year 1883, 
 two are in England The Civil Service Supply Association, 
 London, and the Portsmouth Supply Association , and two in 
 Scotland. These are the only societies on that plan included 
 in the returns. The two English societies had a total member- 
 ship at the end of the year of 4,916 ; sales during the year, 
 1,676,883; stock at the end of the year, 333,139; trade 
 
DISTRIBUTIVE CO-OPERATION. 51 
 
 expenses, 157,746; share capital, 344,875; loan capital, 
 25,916; net profit for the year, 47,018. The two Scottish 
 societies' membership was 4,948 ; sales during the year, 
 161,634; stock at the end of the year, 29,335; trade ex- 
 penses, 13,404; share capital, 17,137 ; no loan capital; net 
 profit for the year, 6,744. 
 
 With these explanations the tables are presented. 
 
A MANUAL OF 
 
 Statistics of Co-operative Societies 
 
 
 NUMBER OF SOCIETIES. 
 
 
 CAPITAL AT END OF YEAR. 
 
 
 
 
 
 Number 
 
 
 
 YFAH 
 
 
 
 
 of 
 
 
 
 XEAR* 
 
 Registered 
 in the year. 
 
 Not making 
 Returns. 
 
 Making 
 Returns. 
 
 Members. 
 
 Share. 
 
 Loan. 
 
 1862 
 1863 
 
 a 454 
 51 
 
 68 
 73 
 
 332 
 381 
 
 90,341 
 111,163 
 
 428,376 
 579,902 
 
 54,499 
 76,738 
 
 1864 
 
 146 
 
 110 
 
 394 
 
 129,429 
 
 684,182 
 
 89,122 
 
 1865 
 
 101 
 
 182 
 
 403 
 
 124,659 
 
 819,367 
 
 107,263 
 
 1866 
 
 163 
 
 240 
 
 441 
 
 144,072 
 
 1,046,310 
 
 118,023 
 
 1867 
 
 137 
 
 192 
 
 577 
 
 171,897 
 
 1,475,199 
 
 136,734 
 
 1868 
 
 190 
 
 93 
 
 673 
 
 211,781 
 
 1,711,643 
 
 177,706 
 
 1869 
 
 65 
 
 133 
 
 754 
 
 229,861' 
 
 1,816,672 
 
 179,054 
 
 1870 
 
 67 
 
 153 
 
 748 
 
 248,108 
 
 2,035,626 
 
 197,029 
 
 187] 
 
 56 
 
 235 
 
 746 
 
 262,188 
 
 2,305,951 
 
 215,453 
 
 1872 
 
 141 
 
 113 
 
 935 
 
 330,550 
 
 2,969,573 
 
 371,541 
 
 1873 
 
 226 
 
 138 
 
 983 
 
 387,765 
 
 3,581,405 
 
 496,830 
 
 1874 
 
 130 
 
 232 
 
 1,031 
 
 412,733 
 
 3,905,093 
 
 587,342 
 
 1875 
 
 117 
 
 285 
 
 1,170 
 
 480,076 
 
 4,403,547 
 
 849,990 
 
 1870 
 
 82 
 
 177 
 
 1,167 
 
 508,067 
 
 5,141,390 
 
 919,772 
 
 1877 
 
 67 
 
 246 
 
 1,148 
 
 529,081 
 
 5,445,449 
 
 1,073,275 
 
 1878 
 
 52 
 
 121 
 
 1,185 
 
 560,993 
 
 5,647,443 
 
 1,145,717 
 
 1879 
 
 52 
 
 146 
 
 1,151 
 
 572,621 
 
 5,755,522 
 
 1,490,343 
 
 1880 
 
 69 
 
 100 
 
 1,183 
 
 604,063 
 
 6,232,093 
 
 1,341,290 
 
 1881 
 
 66 
 
 _ 
 
 1,240 
 
 643,617 
 
 6,940,173 
 
 1,483,583 
 
 1882 
 
 51 
 
 108 
 
 1,156 
 
 655,045 
 
 7,298,441 
 
 1,464,059 
 
 1883 
 
 42 
 
 151 
 
 1,153 
 
 680,165 
 
 7,467,849 
 
 1,524,341 
 
 Statistics of Co-operative Societies 
 
 1862 
 
 a 454 
 
 68 
 
 332 
 
 90,341 
 
 428,376 
 
 54,499 
 
 1863 
 
 - 51 
 
 73 
 
 381 
 
 111,163 
 
 579,902 
 
 76,738 
 
 1864 
 
 146 
 
 110 
 
 394 
 
 129,429 ' 
 
 684,182 
 
 89,122 
 
 1865 
 
 101 
 
 182 
 
 403 
 
 124,659 
 
 819,367 
 
 107,263 
 
 1866 
 
 163 
 
 240 
 
 441 
 
 144,072 
 
 1,046,310 
 
 118,023 
 
 1867 
 
 137 
 
 192 
 
 577 
 
 171,897 
 
 1,475,199 
 
 136,734 
 
 1868 
 
 190 
 
 93 
 
 673 
 
 211,781 
 
 1,711,643 
 
 177,706 
 
 1869 
 
 65 
 
 133 
 
 754 
 
 229,861 
 
 1,816,672 
 
 179,054 
 
 1870 
 
 67 
 
 153 
 
 748 
 
 248,108 
 
 2,035,626 
 
 197,029 
 
 1871 
 
 56 
 
 235 
 
 746 
 
 262,188 
 
 2,305,951 
 
 215,453 
 
 1872 
 
 138 
 
 104 
 
 927 
 
 339,986 
 
 2,968,758 
 
 371,531 
 
 1873 
 
 225 
 
 135 
 
 978 
 
 387,301 
 
 3,579,062 
 
 496,740 
 
 1874 . 
 
 128 
 
 227 
 
 1,026 
 
 412,252 
 
 3,903,608 
 
 586,972 
 
 1875 
 
 116 
 
 283 
 
 1,163 
 
 479,284 
 
 4,793,909 
 
 844,620 
 
 1876 
 
 82 
 
 170 
 
 1,165 
 
 507,857 
 
 5,140,219 
 
 919,762 
 
 1877 
 
 66 
 
 240 
 
 1,144 
 
 528,576 
 
 5,437,959 
 
 1,073,265 
 
 1878 
 
 52 
 
 119 
 
 1,181 
 
 560,703 
 
 5,645,883 
 
 1,145,707 
 
 1879 
 
 51 
 
 146 
 
 1,145 
 
 573,084 
 
 5,747,907 
 
 1,496,143 
 
 1880 
 
 67 
 
 100 
 
 1,177 
 
 603,541 
 
 6,224,271 
 
 1,341,190 
 
 188] 
 
 62 
 
 
 1,230 
 
 642,783 
 
 6,9-'<7,2S4 
 
 1,483,583 
 
 1882 
 
 51 
 
 108 
 
 1,145 
 
 654,038 
 
 7,289,359 
 
 1 ,463,950 
 
 1883 
 
 42 
 
 151 
 
 1,095 
 
 679,294 
 
 7,459,139 
 
 1,524,241 
 
 a The total number registered to December 31, 1862. 
 
 b Estimated on the basis of the returns made to the Central Co-operative Board for 1881. 
 
 c Includes joint stock companies. 
 
DISTRIBUTIVE CO-OPERATION. 
 
 53 
 
 in the United Kingdom 1862-1883. 
 
 
 
 
 
 CAPITAL INVESTED IN 
 
 
 
 Sales. 
 
 Net Profit. 
 
 Trade 
 Expenses. 
 
 Trade 
 Stock. 
 
 Industrial and 
 Provident 
 Societies, and 
 Sources other 
 
 Joint 
 Stock 
 Compa- 
 
 Profit de- 
 voted to 
 Education. 
 
 of 
 Reserve 
 Fund. 
 
 
 
 
 
 than Trade. 
 
 nies. 
 
 
 
 2,333,523 
 
 165,562 
 
 127,749 
 
 _ 
 
 _ 
 
 _ 
 
 _ 
 
 _ 
 
 2,073,778 
 
 216,005 
 
 167,620 
 
 - 
 
 - 
 
 - 
 
 - 
 
 - 
 
 2,836,606 
 
 224,460 
 
 163,147 
 
 
 
 - 
 
 
 
 
 
 
 
 3,373,847 
 
 279,226 
 
 181,766 
 
 - 
 
 - 
 
 - 
 
 - 
 
 - 
 
 4,462,676 
 6,001,153 
 
 372,307 
 398,578 
 
 219,746 
 255,923 
 
 583,539 
 
 c 494,429 
 
 ~ 
 
 3,203 
 
 32,629 
 
 7,122,360 
 
 424,420 
 
 294,451 
 
 671,165 
 
 137,397 
 
 166,398 
 
 3,636 
 
 33,109 
 
 7,353,363 
 
 438,101 
 
 280,116 
 
 784,847 
 
 117,586 
 
 178,367 
 
 3,814 
 
 38,630 
 
 8,201,685 
 
 553,435 
 
 311,910 
 
 912,102 
 
 126,736 
 
 204,876 
 
 4,275 
 
 52,990 
 
 9,463,771 
 
 666,399 
 
 346,415 
 
 1,029,446 
 
 145,004 
 
 262,594 
 
 5,097 
 
 66,631 
 
 13,012,120 
 
 936,715 
 
 479,130 
 
 1,383,063 
 
 318,477 
 
 382,846 
 
 6,96 
 
 93,601 
 
 15,639,714 
 
 1,110,658 
 
 556,540 
 
 1,627,402 
 
 370,402 
 
 449,039 
 
 7,107 
 
 102,722 
 
 16,374,053 
 
 1,228,038 
 
 594,455 
 
 1,781,053 
 
 418,301 
 
 522,081 
 
 7,949 
 
 116,829 
 
 18,499,901 
 
 1,429,090 
 
 686,178 
 
 2,095,675 
 
 667,825 
 
 553,454 
 
 10,879 
 
 241,930 
 
 19,921,054 
 
 1,743,980 
 
 1,279,856 
 
 2,664,042 
 
 - 
 
 - 
 
 - 
 
 - 
 
 21,390,447 
 
 1,924,551 
 
 1,381,961 
 
 2,648,282 
 
 - 
 
 - 
 
 - 
 
 - 
 
 21,402,219 
 
 1,837,660 
 
 1,494,607 
 
 2,609,729 
 
 
 
 
 
 
 
 - 
 
 20,382,772 
 
 1,857,790 
 
 1,537,138 
 
 2,857,214 
 
 _ 
 
 _ 
 
 - 
 
 - 
 
 23,248,314 
 
 b 1,868,599 
 
 1,429,160 
 
 2,880,076 
 
 d 3,429,940 
 
 17,407 
 
 13,910 
 
 - 
 
 24,945,063 
 
 1,981,109 
 
 _ 
 
 3,053,333 
 
 _ 
 
 
 
 13,825 
 
 
 
 26,598,295 
 
 2,108,498 
 
 1,625,170 
 
 3,279,374 
 
 4,085,871 
 
 _ 
 
 14,730 
 
 _ 
 
 28,089,310 
 
 2,318,932 
 
 1,727,875 
 
 3,196,460 
 
 4,395,786 
 
 - 
 
 15,754 
 
 - 
 
 in Great Britain 1862-1883. 
 
 2,333,523 
 
 165,562 
 
 127,749 
 
 
 
 
 
 
 2,673,778 
 
 216,005 
 
 167,620 
 
 - 
 
 - 
 
 - 
 
 - 
 
 - 
 
 2,836,606 
 
 224,460 
 
 163,147 
 
 _ 
 
 _ 
 
 _ 
 
 _ 
 
 _ 
 
 3,373,847 
 
 279,226 
 
 181,766 
 
 _ 
 
 _ 
 
 _ 
 
 _ 
 
 _ 
 
 4,462,676 
 
 372,307 
 
 219,746 
 
 _ 
 
 _ 
 
 _ 
 
 _ 
 
 _ 
 
 6,001,153 
 
 398,578 
 
 255,923 
 
 583,539 
 
 c 494,429 
 
 _ 
 
 3,203 
 
 32,629 
 
 7,122,360 
 
 424,420 
 
 294,451 
 
 671,165 
 
 137,397 
 
 166,398 
 
 3,636 
 
 33,109 
 
 7,353,363 
 
 438,101 
 
 280,116 
 
 784,847 
 
 117,586 
 
 178,367 
 
 3,814 
 
 38,630 
 
 8,201,685 
 
 553,435 
 
 311,910 
 
 912,102 
 
 126,736 
 
 204,876 
 
 4,275 
 
 52,990 
 
 9,463,771 
 
 666,399 
 
 346,415 
 
 1,029,446 
 
 145,004 
 
 262,594 
 
 5,097 
 
 66,631 
 
 12,992,345 
 
 935,551 
 
 477,846 
 
 1,383,063 
 
 318,477 
 
 382,846 
 
 6,696 
 
 93,601 
 
 15,623,553 
 
 1,109,795 
 
 555,766 
 
 1,627,402 
 
 370,402 
 
 449,039 
 
 7,107 
 
 102,722 
 
 16,358,278 
 
 1,227,226 
 
 593,548 
 
 1,781,053 
 
 418,301 
 
 522,081 
 
 7,949 
 
 116,829 
 
 18,484,382 
 
 1,427,365 
 
 685,118 
 
 2,094,325 
 
 667,825 
 
 553,454 
 
 10,879 
 
 241,930 
 
 19,909,699 
 
 1,742,501 
 
 1,279,392 
 
 2,664,042 
 
 _ 
 
 _ 
 
 _ 
 
 _ 
 
 21,374,013 
 
 1,922,361 
 
 1,381,285 
 
 2,647,309 
 
 _ 
 
 _ 
 
 _ 
 
 _ 
 
 21,385,646 
 
 1,836,371 
 
 1,493,842 
 
 2,609,729 
 
 - 
 
 . 
 
 _ 
 
 _ 
 
 20,365,602 
 
 1,856,308 
 
 1,536,282 
 
 2,857,214 
 
 _ 
 
 _ 
 
 _ 
 
 _ 
 
 23,231,677 
 
 b 1,866,839 
 
 1,428,303 
 
 2,878,832 
 
 d 3,429,935 
 
 17,407 
 
 13,910 
 
 _ 
 
 24,926,005 
 
 1,979,576 
 
 _ 
 
 3,051,665 
 
 _ 
 
 _ 
 
 13,822 
 
 _ 
 
 26,573,551 
 
 2,106,958 
 
 1,625,170 
 
 3,279,374 
 
 4,085,871 
 
 _ 
 
 14,730 
 
 _ 
 
 28,065,809 
 
 2,317,150 
 
 1,726,487 
 
 3,194,875 
 
 4,388,545 
 
 ~ 
 
 15,754 
 
 ~ 
 
 d The return states this sum to be investments other than in trade, which may mean invest- 
 ments in the wholesale societies, corn mills, joint stock companies, building departments, banks, 
 mortgages, loans, etc. 
 
54 
 
 A MANUAL OF 
 
 Statistics of Co-operative Societies 
 
 
 NUMBER OF SOCIETIES. 
 
 
 CAPITAL AT END OF YEAR. 
 
 
 
 
 
 Number 
 
 
 
 YEAR. 
 
 Registered 
 in the year. 
 
 Not making 
 Returns. 
 
 Making 
 Returns. 
 
 of 
 Members. 
 
 Share. 
 
 Loan. 
 
 1862 
 1863 
 
 a 454 
 51 
 
 68 
 73 
 
 332 
 381 
 
 90,341 
 111,163 
 
 428,376 
 579,902 
 
 54,499 
 76,738 
 
 1864 
 
 146 
 
 110 
 
 394 
 
 129,429 
 
 684,182 
 
 89,122 
 
 1865 
 
 101 
 
 182 
 
 403 
 
 124,659 
 
 819,367 
 
 107,26a 
 
 1866 
 
 163 
 
 240 
 
 441 
 
 144,072 
 
 1,046,310 
 
 118,023 
 
 1867 
 
 137 
 
 192 
 
 577 
 
 171,897 
 
 1,475,199 
 
 136,734 
 
 1868 
 
 190 
 
 93 
 
 673 
 
 211,781 
 
 1,711,643 
 
 177,706 
 
 1869 
 
 65 
 
 133 
 
 754 
 
 229,861 
 
 1,816,672 
 
 179,054 
 
 1870 
 
 67 
 
 153 
 
 748 
 
 248,108 
 
 2,035,626 
 
 197,029 
 
 1871 
 
 56 
 
 235 
 
 746 
 
 262,188 
 
 2,305,951 
 
 215,453 
 
 1872 
 
 113 
 
 66 
 
 749 
 
 301,157 
 
 2,786,965 
 
 344,509 
 
 1873 
 
 186 
 
 69 
 
 790 
 
 340,930 
 
 3,344,104 
 
 431,808 
 
 1874 
 
 113 
 
 177 
 
 810 
 
 357,821 
 
 3,653,582 
 
 498,052 
 
 1875 
 
 98 
 
 237 
 
 926 
 
 420,024 
 
 4,470,857 
 
 742,073 
 
 1876 
 
 72 
 
 113 
 
 937 
 
 444,547 
 
 4,825,642 
 
 774,809 
 
 1877 
 
 58 
 
 186 
 
 896 
 
 461,666 
 
 5,092,958 
 
 916,955 
 
 1878 
 
 48 
 
 65 
 
 963 
 
 490,584 
 
 5,264,855 
 
 965,499 
 
 1879 
 
 40 
 
 106 
 
 937 
 
 504,117 
 
 5,374,179 
 
 1,324,970 
 
 1880 
 
 53 
 
 62 
 
 953 
 
 526,686 
 
 5,806,545 
 
 1,124,795 
 
 1881 
 
 50 
 
 - 
 
 971 
 
 552,353 
 
 6,431,553 
 
 1,205,145 
 
 1882 
 
 51 
 
 71 
 
 900 
 
 566,338 
 
 6,794,624 
 
 1,150,006 
 
 1883 
 
 42 
 
 150 
 
 870 
 
 576,477 
 
 6,871,590 
 
 1,165,956 
 
 a The total number registered to December 31, 1862. 
 
 b Estimated on the basis of the returns made to the Central Co-operative Board for 1881. 
 
 c Includes joint stock companies. 
 
 Statistics of Co-operative- Societies 
 
 1872 
 
 25 
 
 38 
 
 178 
 
 38,829 
 
 181,793 
 
 27,022 
 
 1873 
 
 39 
 
 66 
 
 188 
 
 46,371 
 
 235,858 
 
 64,932 
 
 1874 
 
 15 
 
 50 
 
 216 
 
 54,431 
 
 250,026 
 
 88,920 
 
 1875 
 
 . 18 
 
 46 
 
 237 
 
 59,260 
 
 323,052 
 
 102,547 
 
 1876 
 
 10 
 
 57 
 
 228 
 
 63,310 
 
 314,577 
 
 144,953 
 
 1877 
 
 8 
 
 54 
 
 248 
 
 66,910 
 
 345,001 
 
 156,310 
 
 1878 
 
 4 
 
 54 
 
 218 
 
 70,119 
 
 381,028 
 
 180,208 
 
 1879 
 
 11 
 
 a 40 
 
 208 
 
 68,967 
 
 373,728 
 
 171,173 
 
 1880 
 
 14 
 
 38 
 
 224 
 
 76,855 
 
 417,726 
 
 216,395 
 
 1881 
 
 12 
 
 9 
 
 259 
 
 90,430 
 
 505,731 
 
 278,438 
 
 1882 
 
 _ 
 
 37 
 
 245 
 
 87,700 
 
 494,735 
 
 313,935 
 
 1883 
 
 
 
 1 
 
 275 
 
 102,817 
 
 587,549 
 
 358,285 
 
 a Estimated. 
 
 Statistics of Co-operative Societies 
 
 1872 
 
 3 
 
 9 
 
 8 
 
 564 
 
 1,815 
 
 10 
 
 1873 
 
 1 
 
 3 
 
 5 
 
 464 
 
 1,443 
 
 90 
 
 1874 
 
 2 
 
 5 
 
 5 
 
 481 
 
 1,485 
 
 370 
 
 1875 
 
 1 
 
 2 
 
 7 
 
 792 
 
 9,638 
 
 5,370 
 
 1876 
 
 _ 
 
 7 
 
 2 
 
 210 
 
 1,171 
 
 10 
 
 1877 
 
 1 
 
 6 
 
 4 
 
 505 
 
 7,490 
 
 10 
 
 1878 
 
 
 2 
 
 4 
 
 290 
 
 1,560 
 
 10 
 
 1879 
 
 1 
 
 
 6 
 
 537 
 
 7,615 
 
 200 
 
 1880 
 
 2 
 
 _ 
 
 6 
 
 522 
 
 7,822 
 
 100 
 
 1881 
 
 4 
 
 _ 
 
 10 
 
 834 
 
 2,889 
 
 _ 
 
 1882 
 
 
 _ 
 
 11 
 
 1,007 
 
 9,082 
 
 100 
 
 1883 
 
 *" 
 
 
 
 8 
 
 871 
 
 8,710 
 
 100 
 
DISTRIBUTIVE CO-OPERATION. 
 
 55 
 
 in England and Wales 1862-1883. 
 
 
 
 
 
 CAPITAL INVESTED IN 
 
 
 
 Sales. 
 
 Net Profit. 
 
 Trade 
 Expenses. 
 
 Trade 
 Stock. 
 
 Industrial and 
 Provident 
 Societies, and 
 
 Joint 
 Stock 
 
 Profit de- 
 voted to 
 Education. 
 
 Amount 
 of 
 Keserve 
 
 
 
 
 
 Sources other 
 
 Compa- 
 
 
 Fund. 
 
 
 
 
 
 than Trade. 
 
 nies. 
 
 
 
 2,333,523 
 
 165,562 
 
 127,749 
 
 _ 
 
 _ 
 
 _ 
 
 _ 
 
 _ 
 
 2,673,778 
 
 216,005 
 
 167,620 
 
 _ 
 
 
 
 _ 
 
 _ 
 
 
 
 2,836,606 
 
 224,460 
 
 163,147 
 
 _ 
 
 _ 
 
 _ 
 
 _ 
 
 _ 
 
 3,373,847 
 
 279,226 
 
 181,766 
 
 _ 
 
 _ 
 
 _ 
 
 - 
 
 - 
 
 4,462,676 
 
 372,307 
 
 219,746 
 
 _ 
 
 _ 
 
 _ 
 
 _ 
 
 _ 
 
 6,001,153 
 
 398,578 
 
 255,923 
 
 583,539 
 
 c 494,429 
 
 _ 
 
 3,203 
 
 32,629 
 
 7,122,360 
 
 424,420 
 
 294,451 
 
 671,165 
 
 137,397 
 
 168,398 
 
 3,636 
 
 33,109 
 
 7,353,363 
 
 438,101 
 
 280,116 
 
 784,847 
 
 117,586 
 
 178,367 
 
 3,814 
 
 38,630 
 
 8,201,685 
 
 553,435 
 
 311,910 
 
 912,102 
 
 126,736 
 
 204,876 
 
 4,275 
 
 52,990 
 
 9,463,771 
 
 666,399 
 
 346,415 
 
 1,029,446 
 
 145,004 
 
 262,594 
 
 5,097 
 
 66,631 
 
 11,397.225 
 
 809,237 
 
 419,567 
 
 1,219,092 
 
 300,712 
 
 380,043 
 
 6,461 
 
 79,292 
 
 13,651,127 
 
 959,493 
 
 488,464 
 
 1,439,137 
 
 337,811 
 
 443,724 
 
 6,864 
 
 83,149 
 
 14.295,762 
 
 1,072,139 
 
 517,445 
 
 1,572,264 
 
 386,640 
 
 510,057 
 
 7,486 
 
 98,732 
 
 16,206,570 
 
 1,250,570 
 
 598,080 
 
 1,852,437 
 
 630,400 
 
 538,140 
 
 10,454 
 
 220,011 
 
 17,619,247 
 
 1,541,384 
 
 1,137,053 
 
 2,377,380 
 
 _ 
 
 _ 
 
 _ 
 
 _ 
 
 18,697,788 
 
 1,680,370 
 
 1,222,664 
 
 2,310,041 
 
 _ 
 
 _ 
 
 _ 
 
 _ 
 
 18,719,081 
 
 1,583,925 
 
 1,315,364 
 
 2,286,795 
 
 _ 
 
 _ 
 
 _ 
 
 _ 
 
 17,816,037 
 
 1,598,156 
 
 1,353,832 
 
 2,486,704 
 
 _ 
 
 _ 
 
 _ 
 
 _ 
 
 20,129,217 
 
 b 1,600,000 
 
 1,285,875 
 
 2,512,039 
 
 d 3,226,370 
 
 _ 
 
 13,262 
 
 _ 
 
 21,276,850 
 
 1,657,564 
 
 _ 
 
 2,585,443 
 
 _ 
 
 _ 
 
 13,314 
 
 _. 
 
 22,839,728 
 
 1,784,454 
 
 1,442,585 
 
 2,818,950 
 
 3,729,675 
 
 _ 
 
 14,039 
 
 __ 
 
 23,583,503 
 
 1,926,488 
 
 1,516,800 
 
 2,727,146 
 
 4,012,083 
 
 - 
 
 14,869 
 
 -- 
 
 d The return states this sum to be investments other than in trade, which may mean invest- 
 ments in the wholesale societies, corn mills, joint stock companies, building departments, banks 
 mortgages, loans, etc. 
 
 in Scotland 1872-1883. 
 
 1,595,120 
 1,972,426 
 
 126,314 
 150,302 
 
 58,279 
 67,302 
 
 163,971 
 188,265 
 
 17,765 
 32,591 
 
 2,803 
 5,315 
 
 235 
 243 
 
 14,309 
 19,573 
 
 2,062,516 
 2,277,812 
 
 155,087 
 176,795 
 
 76,103 
 87,038 
 
 208,789 
 241,888 
 
 31,661 
 31,425 
 
 12.024 
 15^314 
 
 463 
 425 
 
 18,097 
 21,919 
 
 2,290,452 
 
 201,117 
 
 142,339 
 
 286,662 
 
 
 
 
 
 2,676,225 
 
 241,991 
 
 158,621 
 
 337,268 
 
 _ 
 
 _ 
 
 _ 
 
 _ 
 
 2,666,565 
 
 252,446 
 
 178,478 
 
 322,934 
 
 _ 
 
 _ 
 
 _ 
 
 
 2,549,565 
 
 258,152 
 
 182,450 
 
 370,510 
 
 _ 
 
 _ 
 
 
 
 
 3,102,460 
 
 266,839 
 
 142,428 
 
 366,793 
 
 203,565 
 
 17,407 
 
 648 
 
 
 3,649,155 
 
 322,012 
 
 _ 
 
 466,222 
 
 
 
 508 
 
 
 3,733,823 
 
 322,504 
 
 182,585 
 
 462,424 
 
 356,196 
 
 _ 
 
 691 
 
 _ 
 
 4,482,306 
 
 390,662 
 
 209,687 
 
 467,729 
 
 376,462 
 
 - 
 
 885 
 
 - 
 
 in Ireland 1872-1883. 
 
 19,775 
 
 1,164 
 
 1,284 
 
 
 
 
 
 
 16,161 
 
 863 
 
 774 
 
 _ 
 
 
 
 
 
 15,775 
 
 812 
 
 907 
 
 _ 
 
 
 
 
 
 15,519 
 11,355 
 
 1,725 
 1,479 
 
 1,060 
 464 
 
 1,350 
 
 - 
 
 ~ 
 
 - 
 
 - 
 
 67 
 
 16,434 
 
 2,190 
 
 676 
 
 973 
 
 
 
 ~ 
 
 
 16,573 
 
 1,289 
 
 765 
 
 
 _ 
 
 _ 
 
 
 15 
 
 17,170 
 16,637 
 
 1,482 
 1,760 
 
 856 
 
 857 
 
 1,244 
 
 5 
 
 - 
 
 45 
 
 71 
 
 19,058 
 
 1,533 
 
 1,039 
 
 1,668 
 
 8 
 
 
 3 
 
 
 24,744 
 
 1,540 
 
 1,758 
 
 1,812 
 
 
 
 
 
 23,501 
 
 1,782 
 
 1,388 
 
 1,585 
 
 7,241 
 
 - 
 
 - 
 
 - 
 
56 
 
 A MANUAL OF 
 
 The preceding tables show that in the United Kingdom since 
 1862 the number of societies, including those making and 
 those not making returns, has risen from 400 to 1304, an in- 
 crease of 226 per cent, while the membership based, upon the 
 returns has risen from 90,341 to 680,165, an increase of 
 652+ per cent. During this time the total sales amount to 
 303,326,024, and the totat net profit to 24,084,113; the 
 latter amount representing capital saved to the members by this 
 mode of trading, it being the sum divided among members 
 since 1862. 
 
 It will be seen that considerable amounts have been invested, 
 devoted to educational purposes, etc. 
 
 The tables show that the co-operative movement has not 
 made uniform progress in all parts of the Kingdom. England 
 and Wales contain the largest proportion of the societies ; 
 Scotland stands next, while in Ireland the movement is yet in 
 its infancy. Beginning with the year 1872 comparisons may 
 be made showing the progress in each division of the United 
 Kingdom, and for this purpose we present the following tables : 
 
 Co-operation in England and Wales 1872-1883. 
 
 CLASSIFICATION. 
 
 1872 
 
 1883 
 
 Percentage of 
 
 
 
 
 Increase. 
 
 Societies making returns, 
 
 749 
 
 870 
 
 16.2 
 
 Number of members, 
 
 301,157 
 
 576,477 
 
 91.4 
 
 Capital, share and loan, 
 
 3,131,474 
 
 8,037,546 
 
 156.6 
 
 Sales, ......... 
 
 11,397,225 
 
 23,583,503 
 
 106.9 
 
 Profits 
 
 809,237 
 
 1,926,488 
 
 138.0 
 
 Devoted to education, . ... 
 
 5,097 
 
 14,869 
 
 191.7 
 
 Co-operation in Scotland 1872-1883. 
 
 
 178 
 
 275 
 
 54.4 
 
 Number of members, 
 
 38,829 
 208,815 
 
 102,817 
 945,834 
 
 164.7 
 
 352.9 
 
 Sales 
 Profits, . '. 
 
 1,595,120 
 126,314 
 235 
 
 4,482,306 
 390,662 
 885 
 
 181.0 
 209.2 
 276.5 
 
 
 
 
 
 Co-operation in Ireland 1872-1883. 
 
 Societies making returns 
 
 8 
 564 
 
 8 
 871 
 
 54.4 
 
 
 1,825 
 
 8,810 
 
 382.7 
 
 
 19,775 
 
 23,501 
 
 18.8 
 
 
 1,164 
 
 1,782 
 
 53.0 
 
 Devoted to education, 
 
 
 
 
DISTRIBUTIVE CO-OPERATION. 57 
 
 These tables show in England and Wales, from 1872 to 
 1883, an increase of 16.2 per cent in number of societies and 
 91.4 per cent in membership. Capital increased 156.6 per 
 cent ; sales 106.9 per cent, and profits 138.0 per cent. The rate 
 of progress in Scotland, it appears, is greater than that in Eng- 
 land and Wales, the increase in societies in that country being 
 54.4 per cent; in membership 164.7 per cent; in capital, 
 352.9 per cent; in sales, 181.0 per cent; and in profits 209.2 
 per cent. The progress in Ireland is comparatively slight. 
 
 It has been estimated that the membership of the societies 
 must be quadrupled if we would arrive at the total population 
 connected with the movement. This would give a total of 
 2,720,660 for the year 1883. In the northwest of England, 
 especially, the movement has great strength, and it has been 
 stated that in this section at least one-fourth of the population 
 in the larger towns procure their supplies from co-operative 
 stores, and that this is true also of the entire counties of Dur- 
 ham and Northumberland. 
 
 It is interesting to note that the average amount of sales to 
 each member, which in 1862 was 25.83, has in 1883 become 
 41.31. The ratio of expenses to members has considerably 
 increased also, the average in 1862 being 1.41 to each mem- 
 ber, and in 1883, 2.54. The average net profit to each mem- 
 ber has nearly doubled, it being 1.83 in 1862 and 3.41 in 
 1883. The percentage of net profit upon share and loan capi- 
 tal was 34.2+ in 1862, and 25.7+ in 1883. 
 
 The following table, showing the sales of all general dis- 
 tributive societies on the Rochdale plan which during the 
 years -1866 to 1883 exceeded 200,000 a year, exhibits the 
 progress of the larger stores and the strength of the movement 
 in various localities : 
 
58 
 
 A MANUAL OF 
 
 Co-operative Societies with Sales: 
 
 
 NAMES OF SOCIETIES. 
 
 COUNTIES. 
 
 1866 
 
 1867 
 
 
 
 
 
 
 
 
 1 
 
 2 
 3 
 
 Rochdale Equitable Pioneers, 
 Co-operative Wholesale Society, . 
 Halifax Industrial, 
 
 Lancashire, 
 Lancashire, 
 Yorkshire, 
 
 249,122 
 
 283,942 
 331,744 
 
 4 
 
 Leeds Industrial and Corn Mill, . 
 
 Yorkshire, 
 
 _ 
 
 _ 
 
 5 
 
 Oldham Industrial, 
 
 Lancashire, 
 
 _ 
 
 _ 
 
 6 
 
 
 Lancashire, 
 
 
 
 
 
 
 
 
 
 Totals 
 
 
 249,122 
 
 615,686 
 
 
 
 
 
 
 
 NAMES OF SOCIETIES. 
 
 COUNTIES. 
 
 1875 
 
 1876 
 
 1 
 
 2 
 3 
 4 
 5 
 6 
 
 8 
 
 Rochdale Equitable Pioneers, 
 Co-operative Wholesale Society, . 
 Halifax Industrial, .... 
 Leeds Industrial and Corn Mill, . 
 Oldham Industrial, .... 
 Bury District, 
 Manchester Equitable, .... 
 Bolton, 
 
 Lancashire, . 
 Lancashire, 
 Yorkshire, 
 Yorkshire, 
 Lancashire, 
 Lancashire, 
 Lancashire, 
 Lancashire, 
 
 
 305,657 
 2,247,395 
 270,499 
 390,645 
 253,438 
 212,814 
 
 
 305,191 
 2,697,366 
 237,754 
 365,639* 
 284,977 
 231,692 
 
 9 
 10 
 11 
 T> 
 
 Gateshead, 
 Barnsley British, 
 Oldham Equitable 
 Huddersfield . 
 
 Durham, 
 Yorkshire, 
 Lancashire, 
 Yorkshire, 
 
 _ 
 
 _ 
 
 13 
 
 Newcastle-upon-Tyne 
 
 Northumberland , 
 
 - 
 
 - 
 
 
 Totals 
 
 
 3,680,448 
 
 4,122,619 
 
 There were also in the year 1883 twenty-two general dis- 
 tributive societies on the Eochdale plan whose sales were over 
 100,000 and under 200,000. Five of these were in Lan- 
 cashire, six in Yorkshire, five in Durham, and one each in the 
 counties of Northumberland, Cumberland, Chester, Leicester,. 
 Devon, and Derbyshire. 
 
DISTRIBUTIVE CO-OPERATION. 
 
 59 
 
 exceeding 200,000 yearly. 
 
 1868 
 
 1889 
 
 1870 
 
 1871 
 
 1872 
 
 1873 
 
 1874 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 290,540 . 
 
 236,439 
 
 222,138 
 
 246,674 
 
 267,572 
 
 287,212 
 
 298,889 
 
 1 
 
 412,240 
 
 507,217 
 
 677,734 
 
 758,764 
 
 1,153,132 
 
 1,636,950 
 
 1,964,829 
 
 2 
 
 _ 
 
 _ 
 
 _ 
 
 _ 
 
 235,730 
 
 264,137 
 
 273,186 
 
 a 
 
 _ 
 
 _ 
 
 _ 
 
 _ 
 
 - 
 
 312,308 
 
 380,536 
 
 4 
 
 _ 
 
 _ 
 
 _ 
 
 _ 
 
 _ 
 
 213,600 
 
 237,845 
 
 5 
 
 - 
 
 - 
 
 - 
 
 - 
 
 - 
 
 209,382 
 
 223,622 
 
 6 
 
 702,780 
 
 743,656 
 
 899,872 
 
 1,005,438 
 
 1,656,434 
 
 2,923,589 
 
 3,384,907 
 
 
 1877 
 
 1878 
 
 1879 
 
 1880 
 
 1881 
 
 1882 
 
 1883 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 311,715 
 
 299,039 
 
 270,070 
 
 283,655 
 
 272,141 
 
 274,627 
 
 276,457 
 
 1 
 
 2,827,052 
 
 2,705,625 
 
 2,645,331 
 
 3,339,681 
 
 3,574,095 
 
 4,038,238 
 
 4,546,891 
 
 2 
 
 237,447 
 
 209,571 
 
 _ 
 
 207,539 
 
 _ 
 
 _ 
 
 206,058 
 
 3 
 
 374,166 
 
 358,865 
 
 360,017 
 
 412,225 
 
 432,811 
 
 438,478 
 
 486,784 
 
 4 
 
 316,903 
 
 279,999 
 
 261,813 
 
 303,012 
 
 310,387 
 
 320,336 
 
 335,672 
 
 5 
 
 251,057 
 
 241,886 
 
 217,282 
 
 231,918 
 
 225,689 
 
 240,227 
 
 250,123 
 
 6 
 
 
 
 
 
 208,513 
 
 242,966 
 
 242,535 
 
 254,124 
 
 258,935 
 
 7 
 
 ' 
 
 - 
 
 - 
 
 - 
 
 219,657 
 
 254,414 
 
 295,437 
 
 8 
 
 - 
 
 - 
 
 _ 
 
 _ 
 
 200,261 
 
 225,202 
 
 248,364 
 
 9 
 
 - 
 
 - 
 
 - 
 
 - 
 
 - 
 
 215,421 
 
 253,512 
 
 10 
 
 - 
 
 - 
 
 - 
 
 
 
 _ 
 
 210,581 
 
 235,678 
 
 11 
 
 _ 
 
 _ 
 
 _ 
 
 _ 
 
 _ 
 
 201,718 
 
 208,710 
 
 12 
 
 . 
 
 - 
 
 - 
 
 - 
 
 - 
 
 - 
 
 239,877 
 
 13 
 
 4,318,340 
 
 4,094,985 
 
 3,963,026 
 
 5,020,996 
 
 5,477,576 
 
 6,673,366 
 
 7,842,498 
 
 
 We now present statistics showing the progress and present 
 condition of the great English Wholesale Society.* The follow- 
 ing table exhibits its progress from its commencement in March, 
 1864, to June, 1885 : 
 
 * Corporate name, Co-operative Wholesale Society, Limited. 
 
60 
 
 A MANUAL OF 
 
 Progress of the English Wholesale Society 
 
 
 
 
 No. of 
 
 CAPITAL. 
 
 YEAR ENDING 
 
 Departments and 
 Branches added. 
 
 5 
 shares 
 taken 
 up. 
 
 mem- 
 bers be- 
 longing 
 to share- 
 holders. 
 
 
 Shares. 
 
 Loans 
 and De- 
 posits. 
 
 Trade 
 and 
 Bank 
 Reserve 
 Fund. 
 
 October, 1864 (30 weeks) 
 
 _ _ 
 
 _ 
 
 18,337 
 
 
 2,455 
 
 
 
 
 
 October, 1865 . 
 
 - 
 
 - 
 
 24,005 
 
 7,182 
 
 1-3 1 
 
 _ 
 
 October, 1866 . 
 
 Tipperary. 
 
 - 
 
 31,030 
 
 10,968 
 
 1 
 
 82 
 
 January, 1868 (65 weeks) 
 
 - 
 
 - 
 
 59,349 
 
 11,276 
 
 14,355 
 
 682 
 
 January, 1869 . 
 
 Kilmallock. 
 
 - 
 
 74,737 
 
 14,888 
 
 16,059 
 
 1,115 
 
 January, 1870 . 
 
 Limerick. 
 
 - 
 
 79,245 
 
 16,556 
 
 22,822 
 
 1,280 
 
 January, 1871 (53 weeks) 
 
 - 
 
 - 
 
 89,880 
 
 19,015 
 
 22,323 
 
 2,826 
 
 January, 1872 . 
 
 Newcastle. 
 
 5,835 
 
 114,588 
 
 24,410 
 
 25,768 
 
 1,910 
 
 January, 1873 . 
 
 Manchester boot and 
 shoe; Crumpsall. 
 
 6,949 
 
 134,276 
 
 31,352 
 
 112,589 
 
 2,916 
 
 January, 1874 . 
 
 Armagh; Manchester 
 drapery; Leicester; 
 Cheshire; Water- 
 ford; Clonmel. 
 
 13,899 
 
 168,985 
 
 48,126 
 
 147,949 
 
 1,613 
 
 January, 1875 . 
 
 London ; Tralee ; Dur- 
 ham. 
 
 17,326 
 
 198,608 
 
 60,930 
 
 193,594 
 
 5,373 
 
 January, 1876 . 
 
 Liverpool. 
 
 22,254 
 
 249,516 
 
 78,249 
 
 286,614 
 
 8,910 
 
 January, 1877 (53 weeks) 
 
 New York ; Goole 
 furnishing; S. 8. 
 ' ' Plover ' ' purchas- 
 ed; Cork. 
 
 24,717 
 
 276,522 
 
 94,590 
 
 299,287 
 
 12,631 
 
 January, 1878 . 
 
 
 24,979 
 
 274,649 
 
 103,091 
 
 287,536 
 
 14,554 
 
 January, 1879 . 
 
 - 
 
 28,206 
 
 305,161 
 
 117,657 
 
 291,939 
 
 16,245 
 
 December, 1879 (50 weeks) 
 
 Launch of S. S. "Pio- 
 neer;" Rouen; 
 Goole forwarding 
 depot. 
 
 30,688 
 
 331,625 
 
 130,615 
 
 321,670 
 
 25,240 
 
 December, 1880 . 
 
 Heckmondwike. 
 
 33,663 
 
 361,523 
 
 146,061 
 
 361,805 
 
 38,422 
 
 December, 1881 . 
 
 Copenhagen; Pur- 
 chase of S.S. "Cam- 
 brian." 
 
 34,351 
 
 367,973 
 
 156,052 
 
 386,824 
 
 16,037 
 
 December, 1882 . 
 
 Tea and coffee depart- 
 ment, London. 
 
 38,643 
 
 404,006 
 
 171,940 
 
 416,832 
 
 20,757 
 
 December, 1883 . ... 
 
 Purchase of S. S. 
 "Marianne Briggs." 
 
 41,783 
 
 433,151 
 
 186,692 
 
 455,879 
 
 20,447 
 
 December, 1884 (53 weeks) 
 
 Hamburg; Bristol; 
 S. 8. "Progress." 
 
 45,099 
 
 459,734 
 
 207,080 
 
 494,840 
 
 25,126 
 
 June, 1885 (26 weeks) 
 
 - 
 
 49,393 
 
 491,000 
 
 225,822 
 
 510,529 
 
 28,268 
 
 See note on page 73, post. 
 
DISTRIBUTIVE CO-OPERATION. 
 
 61 
 
 from March, 1864, to June, 1885* 
 
 CAPITAL. Con. 
 
 Net Sales. 
 
 COMPARISON 
 
 WITH PREVIOUS 
 TEAR. 
 
 DISTRIBUTIVE 
 
 EXPENSES. 
 
 Net Profit. 
 
 Aver- 
 age divi- 
 dend 
 paid per 
 . 
 
 Trans- 
 ferred to 
 Reserve 
 and Insur- 
 ance 
 Funds. 
 
 Insur- 
 ance 
 Fund. 
 
 Reserv- 
 ed Ex- 
 penses. 
 
 Total. 
 
 Increase. 
 
 Per- 
 cent- 
 age. 
 
 Amount. 
 
 Hate 
 per 
 on 
 Sales. 
 
 
 
 
 
 2,455 
 
 
 51,857 
 
 
 
 _ 
 
 
 347 
 
 !% 
 
 267 
 
 d. 
 W* 
 
 
 
 - 
 
 - 
 
 7,182 
 
 120,754 
 
 - 
 
 - 
 
 906 
 
 IX, 
 
 1,858 
 
 zy* 
 
 - 
 
 - 
 
 - 
 
 11,050 
 
 175,489 
 
 54,735 
 
 45^ 
 
 1,615 
 
 2% 
 
 2,310 
 
 3 
 
 234 
 
 - 
 
 - 
 
 26,313 
 
 . 331,744 
 
 112,688 
 
 51% 
 
 3,135 
 
 2^ 
 
 4,411 
 
 3 
 
 450 
 
 - 
 
 - 
 
 32,062 
 
 412,240 
 
 124,063 
 
 43 
 
 3,338 
 
 1% 
 
 4,862 
 
 2% 
 
 416 
 
 - 
 
 - 
 
 40,658 
 
 507,217 
 
 94,977 
 
 23 
 
 4,644 
 
 2^ 
 
 4,248 
 
 UK 
 
 542 
 
 - 
 
 - 
 
 44,164 
 
 677,734 
 
 159,379 
 
 30^ 
 
 5,583 
 
 1% 
 
 7,626 
 
 2^ 
 
 1,620 
 
 - 
 
 - 
 
 52,088 
 
 758,764 
 
 86,559 
 
 12% 
 
 6,853 
 
 2X 
 
 7,867 
 
 2^ 
 
 1,036 
 
 - 
 
 - 
 
 146,857 
 
 1,153,132 
 
 394,368 
 
 51% 
 
 12,811 
 
 2^ 
 
 11,116 
 
 2^ 
 
 3,243 
 
 2,356 
 
 - 
 
 200,044 
 
 1,636,950 
 
 483,818 
 
 41% 
 
 21,147 
 
 3 
 
 14,233 
 
 2 
 
 922 
 
 3,385 
 
 - 
 
 263,282 
 
 1,964,829 
 
 327,879 
 
 20 
 
 28,436 
 
 3% 
 
 20,684 
 
 2 
 
 5,461 
 
 5,834 
 
 - 
 
 379,607 
 
 2,247,395 
 
 282,566 
 
 14% 
 
 31,555 
 
 3% 
 
 26,750 
 
 2% 
 
 7,826 
 
 10,843 
 
 634 
 
 417,985 
 
 2,697,366 
 
 401,095 
 
 17% 
 
 42,436 
 
 3& 
 
 36,979 
 
 2% 
 
 4,925 
 
 12,556 
 
 788 
 
 418,525 
 
 2,827,052 
 
 188,897 
 
 7% 
 
 43,169 
 
 3% 
 
 29,189 
 
 2 
 
 579 
 
 15,127 
 
 1,146 
 
 442,114 
 
 2,705,625 
 
 (121,427 
 
 t*# 
 
 43,093 
 
 3% 
 
 34,959 
 
 2^ 
 
 5,970 
 
 15,710 
 
 1,095 
 
 494,330 
 
 2,645,331 
 
 22,774 
 
 0% 
 
 41,309 
 
 3% 
 
 42,764 
 
 2^ 
 
 8,060 
 
 17,905 
 
 1,661 
 
 565,854 
 
 3,339,681 
 
 611,282 
 
 22% 
 
 47,153 
 
 3% 
 
 42,090 
 
 2% 
 
 10,651 
 
 18,644 
 
 2,489 
 
 580,046 
 
 3,574,095 
 
 234,414 
 
 7 
 
 51,306 
 
 3% 
 
 46,850 
 
 2% 
 
 7,672 
 
 19,729 
 
 2,945 
 
 632,203 
 
 4,038,238 
 
 464,143 
 
 12% 
 
 57,340 
 
 3% 
 
 49,658 
 
 2% 
 
 3,416 
 
 21,949 
 
 6,214 
 
 691,181 
 
 4,546,889 
 
 508,651 
 
 12% 
 
 66,057 
 
 3% 
 
 47,885 
 
 2^ 
 
 ' 3,176 
 
 24,324 
 
 9,988 
 
 761,358 
 
 4,675,371 
 
 41,042 
 
 0% 
 
 70,343 
 
 3K 
 
 54,491 
 
 2% 
 
 6,431 
 
 27,310 
 
 6,496 
 
 798,425 
 
 2,242,242 
 
 131,116 
 
 6% 
 
 36,846 
 
 3% 
 
 38,787 
 
 3% 
 
 7,527 
 
 t Decrease. 
 
62 A MANUAL OF 
 
 The total amount of sales shown in the foregoing table is 
 43,329,995, while the expenses reach the total of 619,422, 
 the rate of expenses per on total sales being 3| per cent. 
 The net profits amount to 529,884, affording an average divi- 
 dend per of 2|cL The total amount transferred to the 
 reserve and insurance funds is 80,157. The figures show 
 conclusively the financial prosperity of this society and indi- 
 cate so far as can be done by aggregates the volume of busi- 
 ness transacted. In certain staples the trade is very large. 
 For instance, the shipments of Irish butter for the year ending 
 June, 1885, amounted to 116,168 firkins, the total weight of 
 this article sold in the single quarter ending June 27, 1885, 
 being 15^577 cwts. ; and besides this 31,977 cwts. of other 
 foreign butter was disposed of. 
 
 The value of tea sold for the year ending June, 1885, was 
 249,228; and of coffee, 36,457. 
 
 The business of the society is still increasing. Comparing 
 the quarter ending June 27, 1885, with the corresponding 
 period in the previous year, and the net value of goods in- 
 creased 5| per cent; the total capital shares, loans, deposits, 
 reserves, and insurance, 9J per cent; the number of mem- 
 bers belonging to the shareholding societies, 10 per cent ; the 
 number of societies holding shares, 5| per cent ; and the num- 
 ber of societies supplied with goods, 5| per cent. On the 27th 
 of June, 1885, the nominal value of land held by the society 
 was about 83,624; of buildings, 109,692, and of steam- 
 ships, 30,070. 
 
 In October, 1884, the total number of employes in the ser- 
 vice of the society was 1,570, of whom about one-half, or 771, 
 were engaged in the Leicester shoe works. One hundred and 
 thirty-two were employed in the shoe works at Heckmond- 
 wike ; 258 in the Manchester departments ; 106 at Newcastle, 
 and the others at the various branches and upon the steam- 
 ships. 
 
 When we remember that this institution rests entirely upon 
 capital invested by workingmen, and largely upon capital 
 saved through co-operative trade, these statistics afford conclu- 
 sive evidence of the soundness of the principles upon which 
 co-operative distribution rests, and of the clear business insight 
 
DISTRIBUTIVE CO-OPERATION. 
 
 63 
 
 possessed by those who have controlled the affairs of the 
 society. 
 
 Although the Scottish Wholesale Society is a much smaller 
 institution, its record is also highly successful. We close our 
 statistical abstract with a table showing its growth to the close 
 of the year 1883 : 
 
 Progress of the Scottish Wholesale Society. 
 
 
 
 
 
 
 INCREASE OF SALES 
 
 
 
 
 
 
 OVER CORRESPOND- 
 
 
 Members in 
 
 Share and 
 
 Reserve 
 
 
 ING PERIOD OF PRE- 
 VIOUS YEAR. 
 
 TEARS. 
 
 Shareholding 
 
 Loan Capi- 
 
 Funds. 
 
 Sales. 
 
 
 
 Societies. 
 
 tal. 
 
 
 
 
 
 
 
 
 
 
 Amount. 
 
 Per- 
 centage. 
 
 
 
 
 
 
 
 
 
 
 
 
 1869 
 
 _ 
 
 4,246 
 
 90 
 
 64,484 
 
 
 - 
 
 1870 
 
 _ 
 
 11,221 
 
 398 
 
 104,929 
 
 40,445 
 
 62 
 
 1871 
 
 _ 
 
 16,177 
 
 932 
 
 135,872 
 
 30,943 
 
 29 
 
 1872 
 
 16,723 
 
 25,820 
 
 1,429 
 
 228,074 
 
 92,202 
 
 67 
 
 1873 
 
 20,496 
 
 46,862 
 
 1,792 
 
 361,856 
 
 133,782 
 
 58 
 
 1874 
 
 24,496 
 
 43,251 
 
 2,199 
 
 417,586 
 
 55,730 
 
 15 
 
 1875 
 
 27,029 
 
 54,388 
 
 2,375 
 
 412,010 
 
 *5,576 
 
 *1 
 
 1876 
 
 28,999 
 
 63,386 
 
 2,675 
 
 440,757 
 
 28,747 
 
 6 
 
 1877 
 
 30,538 
 
 68,117 
 
 3,217 
 
 554,890 
 
 114,133 
 
 25 
 
 1878 
 
 33,934 
 
 80,028 
 
 3,357 
 
 603,906 
 
 49,016 
 
 8 
 
 1879 
 
 35,768 
 
 85,554 
 
 3,983 
 
 611,626 
 
 7,720 
 
 1 
 
 1880 
 
 40,798 
 
 101,335 
 
 7,727 
 
 789,506 
 
 177,880 
 
 29 
 
 1881 
 
 48,097 
 
 122,864 
 
 10,407 
 
 937,828 
 
 148,322 
 
 18 
 
 1882 
 1883 
 
 52,610 
 57,252 
 
 153,575 
 174,413 
 
 11,370 
 13,678 
 
 1,080,658 
 1,202,998 
 
 142,830 
 122,340 
 
 15 
 11 
 
 * Decrease. 
 
 THE CO-OPERATIVE UNION. 
 
 The co-operative societies are bound together by the organi- 
 zation of the Co-operative Union. This organization affords 
 moral support to the societies, and through its executive, the 
 Central Co-operative Board, is an effective agency in pro- 
 moting their welfare, and an invaluable aid in disseminating 
 information respecting the movement and in promoting the ex- 
 tension of co-operative work. 
 
 By its constitution the Union declares its purpose to be ' the 
 promotion of the practice of truthfulness, justice, and economy 
 in production and exchange." It proposes to effect this pur- 
 pose : 
 
 " (1) By the abolition of false dealing, either a. Direct, by 
 representing any article produced or sold to be other than what it is 
 known to the producer or vendor to be ; or, b. Indirect, by con- 
 
64 A MANUAL OF 
 
 cealing from the purchaser any fact known to the vendor material 
 to be known by the purchaser, to enable him to judge of the value 
 of the article purchased. 
 
 (2) By conciliating the conflicting interests of the capitalist, the 
 worker, and the purchaser, through an equitable division among 
 them of the fund commonly known as profit. 
 
 (3) By preventing the waste of labor now caused by unregu- 
 lated competition." 
 
 This platform is broad and far reaching in its scope. It not 
 only comprehends all that has yet been accomplished by the 
 co-operative societies, but includes all that the ardent co-opera- 
 tor hopes to see realized in tbe future. It seeks a division of 
 profit not only among consumers, but among capitalists and 
 workers also, and aims, as co-operative advocates generally 
 do, at restricting competition. 
 
 The Union is open to all industrial and provident societies, 
 friendly or building societies, trade unions or associations, 
 joint stock companies or industrial partnerships, provided 
 always that such societies or associations accept the statement 
 of principles enunciated by the Union and agree to be guided 
 by tbem in business transactions, and agree : 
 
 " To contribute to the Congress fund an annual subscription, at the 
 rate of 2cZ. for each member, or, in the case of industrial partner- 
 ships, each employe, up to 500. Contributions on any larger num- 
 ber of members give the controlling body, for each additional 500 
 members, or fraction, for whom it pays at the rate above mentioned, 
 the right to send an additional delegate to the annual Congress, by 
 which the Union is governed." 
 
 The Central Board, as tbe executive of the Union, is pre- 
 pared to give legal and general advice to the societies in mat- 
 ters affecting their interests. It is also a statistical bureau 
 collecting and collating information for their benefit, and, 
 lastly, it is a propagandist agency aiming to disseminate co- 
 operative principles especially in tbe United Kingdom but 
 generally throughout the world. 
 
 In the co-operative organization the societies are grouped in 
 sections, of which there are six, viz : Midland, Northern, 
 North- Western, Scottish, Southern, and Western. Each of 
 
DISTEIBUTIVE CO-OPERATION. 65 
 
 these sections contains approximately the following number of 
 societies : 
 
 Midland, 196 ; Northern, 133 ; North- Western, 437 ; Scot- 
 tish, 295 ; Southern, 152 ; and Western, 66. These returns 
 include 36 productive societies, exclusive of the productive 
 departments of the wholesale society. The societies in Ireland 
 are attached to the North-Western section. The sections, with 
 the exception of the Western, are each sub-divided into con- 
 ference districts, the number of such districts in each section 
 being as follows : Midland, 9 ; Northern, 7 ; North-Western, 
 15 ; Scottish, 10 ; and Southern, 9. 
 
 Besides the general Congress of the Union, held annually, 
 and composed of delegates from the societies in fellowship, 
 local conferences are held in the various conference districts 
 for the discussion of subjects in interest. 
 
 The affairs of each section are managed by local councils 
 annually elected by ballot by the societies in the sections re- 
 spectively. These councils have the following number of 
 members: Midland, 9; Northern, 7; North-Western, 11; 
 Scottish, 10; Southern, 9; and Western, 7. These councils 
 united constitute the Central Board. 
 
 The executive committee of the Central Board is termed the 
 United Board, and consists of two representatives from each 
 local council, except the North-Western, which has three, and 
 the Western, which has one. 
 
 The Central Board in its entirety meets twice each year, 
 once just prior to the assembling of the Congress and once 
 immediately after the appointment of a new Board. The 
 United Board meets three times each year, at Manchester. 
 The executive of the United Board is termed an office com- 
 mittee, and its members are appointed from the general body 
 by the Central Board at its "first meeting in the year. Attached 
 to the United Board is a paid staff comprising a secretary, 
 assistant secretary, bookkeeper, and clerks. 
 
 The members of the several Boards and councils are paid 
 travelling and other necessary expenses incurred in the per- 
 formance of their duties. 
 
 The conference districts of the sections are variously organ- 
 ized ; some have a chairman, secretary, and committee ; others 
 
66 A MANUAL OF 
 
 have in addition a statistical secretary ; others have a secretary 
 only, while a few have no officers. 
 
 At the Congresses reports are presented upon the condition 
 of the societies in the various sections, papers are read upon 
 co-operative subjects, and the usual discussions ensue. The 
 Congresses are opened by an inaugural address by some person 
 of eminence, and it is customary to listen to a sermon from 
 some noted divine. The rules of the Congress provide for 
 meetings upon two days only, but it is now usual to prolong 
 the sessions to three days. 
 
 Among others, the following subjects have been discussed : 
 The law relating to co-operation ; associated homes ; co- 
 operative banking ; methods of voting and auditing in 
 co-operative societies, and the best methods of managing such 
 societies ; co-operative cottage building ; education in connec- 
 tion with co-operation ; credit ; land and agriculture ; bonus 
 or profit sharing ; prospects of co-operation ; policy of high 
 dividends ; propagation and organization in the co-operative 
 movement ; surplus capital ; trade unions ; transferable or 
 withdrawable shares ; workingmen's clubs ; co-operative jour- 
 nalism ; co-operative production ; a labor exchange ; industrial 
 partnerships, and wholesale distribution. 
 
 Addresses have been delivered by Thomas Hughes, Q. C. M.P. , 
 W. Morrison, M.P., Hon. Auberon Herbert, M.P., Joseph 
 Cowen, M.P., Sir Thomas Brassey, M.P., Prof. Thorold 
 Kogers, M.P., Prof. Hodgson, The Marquis of Ripon, Prof. 
 Stuart, The Lord Bishop of Durham, The Earl, of Derby, 
 Lord Reay, Eight Hon. W. Baxter, M.P., Sedley Taylor, 
 Esq., and Mr. Lloyd Jones. 
 
 The statistics of the Union are presented in the following 
 table : * 
 
 * Co-operative Annual, 1885. 
 
DISTRIBUTIVE CO-OPEKATION. 
 
 67 
 
 YEARS. 
 
 Subscrib- 
 ing 
 Societies. 
 
 No. of 
 members. 
 
 Subscriptions 
 and 
 Donations. 
 
 Places where Congress 
 met. 
 
 Societies 
 repre- 
 sented. 
 
 No. of 
 delegates. 
 
 
 
 
 8. d. 
 
 
 
 
 1869 
 
 55 
 
 _ 
 
 117 13 9 
 
 London, . 
 
 57 
 
 62 
 
 1870 
 
 
 _ 
 
 
 Manchester, 
 
 21 
 
 96 
 
 1871 
 
 183 
 
 86,139 
 
 220 11 10 
 
 Birmingham, 
 
 30 
 
 75 
 
 1872 
 
 202 
 
 _ 
 
 396 7 1 
 
 Bolton, . 
 
 65 
 
 130 
 
 1873 
 
 253 
 
 _ 
 
 922 8 8 
 
 Newcastle-on-Tyne, 
 
 92 
 
 194 
 
 1874 
 
 357 
 
 197,476 
 
 1,375 6 11 
 
 Halifax, . 
 
 94 
 
 189 
 
 1875 
 
 352 
 
 219,150 
 
 1,495 10 5 
 
 London, . 
 
 71 
 
 114 
 
 1876 
 
 397 
 
 219,748 
 
 1,556 3 8 
 
 Glasgow, 
 
 03 
 
 116 
 
 1877 
 
 430 
 
 249,228 
 
 1,764 2 8 
 
 Leicester, 
 
 109 
 
 170 
 
 1878 
 
 450 
 
 246,214 
 
 1,939 3 
 
 Manchester, 
 
 164 
 
 280 
 
 1879 
 1880 
 
 469 
 510 
 
 270,665 
 293,949 
 
 1,980 13 7 
 '2,190 5 3 
 
 Gloucester, 
 Newcastle-on-Tyne, 
 
 85 
 113 
 
 130 
 199 
 
 1881 
 
 494 
 
 290,623 
 
 2,120 10 9 
 
 Leeds, . 
 
 154 
 
 275 
 
 1882 
 
 496 
 
 339,474 
 
 2,115 13 4 
 
 Oxford, . 
 
 141 
 
 217 
 
 1883 
 
 553 
 
 343,923 
 
 2,660 9 2 
 
 Edinburgh, 
 
 246 
 
 397 
 
 1884 
 
 606 
 
 518,971 
 
 3,043 9 2 
 
 Derby, . 
 
 243 
 
 425 
 
 1885 
 
 631 
 
 554,156 
 
 3,356 6 3 
 
 Oldham, . 
 
 255 
 
 578 
 
 The proceedings of the Congresses are annually published. 
 The Central Board, in the exercise of its function as a propa- 
 gandist agency, also publishes and circulates, either by gift or 
 sale, many pamphlets and documents upon co-operative sub- 
 jects. 
 
 The Central Board has performed much work of a purely 
 utilitarian nature, relating to the pecuniary and legal interests 
 of the societies. Its labors of this kind may be understood 
 from the following: 
 
 "The appointment of the present General Secretary* has, since 
 1873, secured to the members of the Union legal advice free of 
 charge ; the publication in the same year of the model rules for land, 
 building, and mortgages, prepared by the present Chief Registrar ; 
 followed, in 1874, by the general rules for industrial and provident 
 societies, which have since been twice revised, and subsequently by 
 the manuals on bookkeeping, on auditing, and on the system of 
 checks ; the various Acts relating to industrial and provident socie- 
 ties passed before 1876 ; the consolidation of these Acts, with many 
 important amendments, in 1876 ; the extension of the power of nom- 
 ination, by the provident nominations and small intestacies Act, up 
 to the limit of 100; the explanations and forms relating to these 
 nominations ; the indexes and other documents of a general char- 
 acter, prepared and issued by the Central Office for the use of so- 
 cieties ; are all instances of this action. Not less important has 
 been the watchfulness of the central body against any attacks aimed 
 
 * Edward V. Neale, Esq. 
 
68 A MANUAL OF 
 
 at co-operation by its commercial opponents of which the ener- 
 getic action taken to prevent the interference with the liberty of the 
 Civil Servants of the Crown in the disposal of their own time, 
 threatened in 1881, is a startling instance." * 
 
 The extension of co-operation is further assisted by the work 
 of the Southern Guild of Co-operators, 31 Southampton Street, 
 Strand, London, W. C., which exerts itself in the formation of 
 new societies and in the education of the public in co-operative 
 principles by means of public meetings. 
 
 The attentive reader of this report must perceive that so- 
 called co-operative distribution, upon the plan formulated by 
 the Rochdale Pioneers, and as at present followed in the United 
 Kingdom, having for its unit the retail store ; possessing the 
 advantage of strong and energetic wholesale societies, composed 
 of and supported by the stores, and fostered by a Central Board 
 and Annual Congresses, has been in the highest degree success- 
 ful in what it has undertaken. 
 
 The organization, considered as a whole, is admirable, adapted 
 to hold together the members, and to advance their common in- 
 terests. Its success might have been predicted, for the whole 
 movement rests upon approved and well recognized business 
 principles. There seems to be no reason why similar enter- 
 prises might not be equally successful elsewhere if the same 
 plan is followed. 
 
 Every store before it opens has its support assured in the 
 trade of its members, If honest men are selected as officers ; 
 common prudence observed in the conduct of business ; reason- 
 able care exercised in the purchase of stock in trade, and the 
 cash system strictly adhered to, failure should be impossible. 
 
 The business may expand as membership increases, and ex- 
 penses may at all times be kept well in hand. 
 
 Of course, in the United States, the isolated store must 
 miss the valuable help which the English stores have in the 
 organization that has grown up as the movement in that 
 
 * This relates to an attempt on the part of certain private traders to prevent govern- 
 ment employe's assisting in the management of co-operative stores. Aimed ostensibly 
 at the London supply associations, it would, if successful, have affected the operation 
 of certain workingmen's associations elsewhere. It was defeated by the prompt action 
 of the Co-operative Union. 
 
DISTRIBUTIVE CO-OPERATI 
 
 country has gained strength; but, if stores were to multiply 
 in America the same organization would follow here, and, 
 meantime, the recorded experience of English effort, if availed 
 of among us, would prevent serious errors in the conduct of 
 business. 
 
 It becomes proper then to review just what this movement 
 has accomplished, and what, if anything, it has failed to achieve ; 
 and in entering upon this inquiry we desire to be perfectly fair, 
 while at the same time presenting the actual facts. For, in jus- 
 tice to those who in this country are interested in co-operative 
 effort, and may seek to establish such stores here, it is well 
 clearly to point out its limitations as well as its possibilities, 
 in order that no more may be expected than is likely to be 
 realized. 
 
 In the first place, how far is this movement co-operative? 
 The answer must be only so far as it rests upon the participa- 
 tion of all customers in the profits they produce by their trade. 
 This is the sole co-operative feature. We speak broadly, and 
 disregard for the moment the limited number of societies which 
 have gone one step farther and allowed a share in profits to 
 employes. 
 
 The division of profits upon the basis of purchases, and the 
 restricting of stockholders to a fixed rate of interest on their 
 capital stock, entitle these stores to the name co-operative, in 
 distinction from the Civil Service distributive societies and 
 other joint stock companies in which profits are divided upon 
 the basis of stock. In the latter only stockholders gain from 
 increase of trade. In co-operative stores all customers gain, 
 and the store is open to all who come. The stockholder re- 
 ceives only his stipulated interest, that being the remuneration 
 to which, as a capitalist, he is entitled. All who assist in mak- 
 ing the profit share in its division. The principle is modified 
 in its operation but not disregarded by the plan of allowing 
 members to share at double the rate of non-members ; for no 
 limitation exists as to membership, and non-members may by 
 a small payment become members at any time, and begin at 
 once to share at the members' rate. 
 
 The stores are justly open to the criticism that while calling 
 themselves co-operative, they are, except in the feature we have 
 mentioned, not really so. Perhaps, considering the sense in 
 
 
70 A MANUAL OF 
 
 which the term co-operation is used in economic discussion, 
 and the persistency and good faith with which it is urged by 
 many as a remedy for industrial evils, the name " Consumers' 
 Societies " would be more appropriate. For it is no detraction 
 from the solid benefits these societies have reaped to admit 
 that as yet they have done little to solve the vexed questions 
 affecting labor and capital, or to advance co-operative princi- 
 ples as they are generally understood. 
 
 This mode of distribution is organized, economized, and 
 made effective for consumers almost entirely, and producers, 
 as such, are not materially benefited. The societies as purchas- 
 ers keenly appreciate and follow the rule adopted by the pri- 
 vate trader, buying at the lowest possible competition prices, 
 and in their transactions with producers making use of the same 
 expedients as those employed in private trade to drive good 
 bargains, and thus swell profits for the benefit of their cus- 
 tomers. 
 
 The maxim that " goods well bought are half sold" is kept 
 constantly in view, and the importance of keen and shrewd 
 buying is so well understood that employes possessing the 
 requisite ability in this direction are highly prized and liberally 
 paid. To the producer, therefore, this system of distribution 
 offers no special advantages. 
 
 How does it affect the wage worker ? The English whole- 
 sale conducts with co-operative capital a considerable manufact- 
 uring business, and production under the management of the 
 societies is likely to increase. Supposing it to increase under 
 the policy already pursued, what benefit would accrue to the 
 employes other than those obtained from private employers? 
 None. Exactly the same principles appear to govern the co- 
 operative and the individual employer. The Co-operative 
 Wholesale pays competition wages and manufactures its goods 
 at the lowest possible labor cost. Its workmen have no share 
 in profits.* Its object is to divide the largest possible profits 
 among its customers. Its mode of operation is identical with 
 that of the private employer. 
 
 This has, indeed, provoked criticism. Says one observer : 
 
 * The Scottish Wholesale escapes this criticism. Its employes, as previously noted, 
 Bhare in dividends. 
 
DISTRIBUTIVE CO-OPERATION. 71 
 
 "The Co-operative Wholesale Society is a gigantic middleman; 
 in its workshops it pays the lowest of competition wages ; in the 
 language of one of the workers in one of the shoe factories, ' the 
 workmen have to work for what they can get, they know there is no 
 true co-operation/ In its transactions with other producers it pays 
 the lowest of competition prices ; the profits made out of the retail 
 prices are distributed amongst the members, labor is depressed. In 
 short, it is as far from displaying a single feature of real co-opera- 
 tion as any private trader is who uses the weapons of competition 
 and capitalism for his personal ends, regardless of the interests of 
 others. 
 
 "The Co-operative Labor Association, whose principal object is to 
 recognize the combined interests of capital and labor in productive 
 enterprise, is largely composed of members of the co-operative move- 
 ment. In a conference just held, a resolution was passed asking ' the 
 committee of the Labor Association to point out in a fraternal spirit 
 to the Wholesale Co-operative Society the grave injury they are doing 
 to the cause of co-operation by their failure to carry out co-operative 
 principles in their productive works, and to offer their services in 
 placing the wholesale workshops upon a true co-operative basis/ "* 
 
 So far then as relates to removing the evils which it is alleged 
 spring from competition, these societies have not yet conspicu- 
 ously succeeded. This does not indicate failure, for it does not 
 appear that in practice much has been attempted in this direc- 
 tion. Probably any other course than that puisued would 
 have diminished the profits which have been divided among the 
 members. It is shrewd business management that has helped 
 to amass these profits, and if the societies be judged solely by 
 their success in what they have attempted no fault can be 
 found. 
 
 It is only when this success is used to attest the efficacy of 
 co-operative theories, that the impartial critic must dissent. 
 As a rule, the co-operative societies have contented themselves 
 with financial success, leaving to the future the extension and 
 application of the theories, which, up to this time, although 
 seeming to disregard in practice, they have never ceased to dis- 
 cuss and advocate. 
 
 Whatever hope and future promise may rest in co-operation 
 
 * "Distribution Reform," by Thos. Illingworth, pages 90-91. Cassell & Co., Pub- 
 lishers. 
 
72 A MANUAL OF 
 
 it is not as a scheme for removing all the evils which many feel 
 to be inherent in the present industrial organization that this 
 plan of co-operative distribution is to be recommended. It 
 may be a help, however. As a method of capital-saving it 
 affords the groundwork of a system of co-operative produc- 
 tion, which might be made safe and remunerative so far as the 
 market for product could be assured by the demands of the 
 stores themselves. Such an assured market would materially 
 relieve the co-operative producers from the struggle which must 
 always be before them in any effort to secure a market in com- 
 petition with private manufacturers. Taken for what it is, it 
 has been of great benefit to the working classes in Great 
 Britain, and under similar social conditions might be equally 
 beneficial elsewhere. 
 
 It has brought to 680,165 members, 24,084,113 in profits, 
 and, incidentally, it has produced other results which no statis- 
 tics can adequately portray, results moral rather than material. 
 It has stimulated thrift, taught self-reliance, encouraged the 
 ownership of property, prevented debt by making cash pay- 
 ments obligatory, and placed in the hands of its patrons goods 
 practically free from adulteration. In the English manufactur- 
 ing towns it has promoted the social spirit by bringing members 
 together in reunions and in educational work. And despite all 
 criticism which may be made upon the slowness of these socie- 
 ties to advance farther upon the co-operative line, it must be 
 conceded that there is much truth in the following from the pen 
 of the able Secretary of the Central Board : 
 
 "The supporters of such a store have, as they ought to have, 
 ample reasons for supporting it in their own interest. Ancl^those 
 who join these institutions when they are successful too often have 
 no other motive than the notion of personal advantage. Still the 
 feeling that the store is an institution essentially unselfish, excluding 
 no one from its benefits, founded for the common good of all who 
 can be induced to take part in it * this feeling, derived from the 
 noble spirit of the original founders of these stores, has given a 
 characteristic tone both to their own action and to the public appre- 
 ciation of them. Their educational funds, their social parties, the 
 attendance at public meetings connected with them, the absence of 
 
 * In contradistinction to the joint stock- companies, where the stock is limited. 
 
DISTRIBUTIVE CO-OPERATION. 73 
 
 a disposition to ridicule their rejoicings at the founding of a new 
 store, are proofs of this. There is a general perception that the 
 co-operative society has in view an end beyond the private interest 
 of those who set it up, which gives to these trading establishments 
 a sort of consecration, even in the eyes of those who do not belong 
 to them."* 
 
 Much of what has been done abroad through these societies 
 is done in Massachusetts by the savings bank, the evening 
 school, the public library, free lectures, and other institu- 
 tions common here, and growing out of our conception of a 
 free State and republican institutions. Much of the need for 
 these stores is also met in our larger towns by enterprising 
 private concerns who put before the public the best goods at 
 low cash prices. But still there is no doubt that in many towns 
 the same financial benefits might accrue to any society formed 
 and conducted on the Rochdale plan, the work being modified 
 in some respects to meet local requirements, and to conform to 
 the needs of American communities.! The experiment is one 
 easily tried, not involving loss if carefully managed, and the 
 results, if successful, well worth the effort. 
 
 NOTE. It may be noticed that the statistics showing the condition of the English 
 wholesale society, December, 1883, contained in the table on pages 60 and 61, differ 
 somewhat from those contained in the table upon page 44. The excess of the totals in 
 the table on page 44 over those in the table on pages 60 and 61 is to be explained from 
 the fact that the table upon page 44 relates to relations existing between the wholesale 
 and all purchasing co-operative societies, many of which are not shareholders, while the 
 table upon pages 60 and 61 relates to the accounts between the wholesale and its share- 
 holding societies. Differences in the classification of certain loans and deposits create 
 differences in the capital account totals, and the excess of sales shown in the table, pages 
 60 and 61, over the amount returned as purchased from the wholesale by co-operative 
 societies in the table, page 44, is caused by the fact that the larger amount includes sales 
 to other than co-operative societies of goods which in the course of trade the wholesale 
 is obliged to buy, but cannot dispose of to its own customers, and is therefore obliged to 
 sell in the open market. 
 
 * Co-operative Board Pamphlets. 
 
 t See in this connection the account of the Arlington Co-operative Association, at 
 Lawrence, Mass., contained in the Appendix. 
 
APPENDIX. 
 
 The following pages present a condensed account of the posi- 
 tion of productive co-operation in Great Britain, and of pro- 
 ductive and distributive co-operation upon the European 
 continent and in Australia. 
 
 For the material from which the account of continental and 
 Australian co-operation was prepared, the Bureau is mainly 
 indebted to the report of a committee upon that subject to the 
 Seventeenth Annual Co-operative Congress, held at Oldham, 
 England, in May, 1885, the authorities upon which said report 
 was based being noted in connection with each country respect- 
 ively. The matter is of interest in considering the general 
 subject of co-operation, and is of sufficient importance to war- 
 rant its presentation here. 
 
 As the record of a successful American experiment in dis- 
 tributive co-operation, upon a plan similar to that instituted at 
 Rochdale, may be of value to others proposing to enter the 
 field, we have also included an account of the Arlington Co- 
 operative Association, at Lawrence, Massachusetts. 
 
 That form of co-operation known as "profit sharing" is 
 treated in detail in Part II. of the Seventeenth Annual Report 
 of this Bureau (in Part I. of which Report this chapter on dis- 
 tributive co-operation is included) , and is therefore not consid- 
 ered here. 
 
 CO-OPERATIVE PRODUCTION IN GREAT BRITAIN. 
 
 The second step in co-operation, according to the leaders of 
 the movement, is its application to production. The theorists, 
 who have devoted their lives to the advancement of co-opera- 
 tive principles, will never rest satisfied with its application 
 
 [75j 
 
76 A MANUAL OF 
 
 merely to the business of buying and selling commodities, how- 
 ever admirable the results may appear. To them the whole 
 structure of co-operative distribution is but the foundation of a 
 far nobler edifice. To utilize in production the capital saved 
 in co-operative stores so as gradually to remove competition in 
 industry is the end they hope finally to reach. Meantime their 
 efforts are devoted to arouse the workingmen who are attached 
 to the distributive societies to a deeper sense of the benefits of 
 a co-operative system which would include production as well 
 as distribution, and to overcome the indifference to other mo- 
 tives than those of immediate personal and pecuniary gain. 
 
 It is unfortunate that there seems to be no well-matured plan 
 commending itself to general acceptance upon which co-opera- 
 tive production can go forward. Two distinct schools exist : the 
 individualists and the federalists. The first hold that individual 
 bodies of workingmen should start for themselves in productive 
 enterprises, obtaining their capital either from their own sav- 
 ings or by loan. The business should then be conducted inde- 
 pendently of the distributive societies, and managed by the 
 workingmen immediately interested, who may, if necessary, go 
 into the open market and secure trade by superior energy or on 
 account of the high quality of their product. The federalists, 
 on the other hand, believe that the federated stores should pro- 
 vide the basis for productive effort; the capital saved in the 
 stores should be used ; the demand of the stores should supply 
 the necessary market, and the management should be by com- 
 mittee, precisely as the wholesale societies are managed. 
 Either individual societies might begin by manufacturing goods 
 to supply their local needs, or, as would seem more feasible, 
 the wholesale societies, possessing a wider market, and able by 
 their experience accurately to gauge production to demand, 
 might proceed upon the plan already adopted in the Leicester 
 Shoe Works. 
 
 The individualist would permit individual shareholders ; the 
 federalist would not, believing such permission dangerous as 
 tending to joint-stockism. Strict adherence to the federalist 
 system, as usually presented, would exclude the worker from 
 participation in profits, except in his function as consumer as a 
 member of some store having capital invested in the works, 
 and except as a bonus or gratuity might be given him for 
 
DISTRIBUTIVE CO-OPERATION. 77 
 
 superior work or extraordinary skill. In the works at present 
 conducted by the English wholesale society upon substantially 
 this plan, the workers, as workers, do not share in profits at 
 all. 
 
 The difficulties attending both systems, as well as their ad- 
 vantages, are apparent. If the workers provide their own 
 capital and divide the profits among themselves, not alone in 
 proportion to capital but also in proportion to work done, the 
 concern would be strictly co-operative, but its success would 
 largely depend upon the p _aelity and talent of the managers, 
 requisite qualities not easily procured, and upon the possibility 
 of securing a permanent and remunerative market. To obtain 
 the latter would involve keen competition with private concerns 
 already well established, or, if several co-operative societies 
 were seeking a market for the same product, keen competition 
 with each other. There is also the difficulty, by no means 
 small, of securing the required capital. The risk is very great, 
 and workingmen are poorly equipped to encounter it. 
 
 If, to overcome the difficulty as to capital, outside stock- 
 holders are admitted, the enterprise loses its strictly co-opera- 
 tive character, jealousy is likely to arise between workers and 
 shareholders (capitalists) , and the latter may at any time secure 
 control and the concern become a purely joint stock company. 
 
 If, on the other system, the federated societies provide, as 
 they may, both capital and market, the two great difficulties in 
 the way of co-operative production may be overcome ; over- 
 production may be guarded against ; more or less capital may 
 be utilized as occasion demands, and, practically, loss may be 
 prevented. 
 
 But if profits are to be divided among consumers only, that 
 is, if profits are to go to the stores which furnish the capital, 
 and are then disseminated in the form of dividends on pur- 
 chases to the patrons of the stores, the workers, as such, 
 acquire no benefit not obtainable in private employment. The 
 scheme is, after all, so far as the workers are concerned, not 
 co-operative. 
 
 Some federalists advocate a bonus or share in profits to labor. 
 In both schools many shades of individual opinion appear. 
 Mr. Holyoake, for instance, ably advocates the participation of 
 labor, capital, and custom (consumers) in profits ; remunerat- 
 
78 A MANUAL OF 
 
 ing capital by a fixed rate of interest, and dividing the remain- 
 der between laborers and consumers, always providing that labor 
 shall have an adequate self-protecting representation upon the 
 directory. Such a plan, he believes, can only be adjusted and 
 maintained by the system of federation, while, at the same 
 time, he is for individualism, in the sense of securing the local 
 capacity, the personal interest, and energy of the three parties, 
 laborer, capitalist, and consumer, who, it appears to him, make 
 up the force of co-operation. 
 
 Radically opposed to the theory of the consumer's right to 
 share in the profits of production, Mr. J. M. Ludlow, the 
 Registrar of Industrial and Friendly societies, an individualist, 
 would have production carried on by independent unions of 
 workers, for whom, primarily, the profits should be reserved. 
 
 Dr. John Watts, however, an eminent federalist, rejects any 
 plan of individual action, as tending to relapse into competition, 
 and would divide the profits arising in federated production 
 among the societies furnishing the capital in proportion to the 
 capital furnished by each, and afterward to their members as 
 dividends on purchases. This scheme, as pointed out by 
 Messrs. Hughes and Neale, must undoubtedly cause the largest 
 share of profits to go to the richer classes, they being the 
 largest buyers ; is essentially a division of profits on capital 
 (joint-stockism) ; and entirely overlooks the worker, as such. 
 " The notion of so carrying on work that the worker may get 
 the full benefit of his labor, after providing for the cost of capi- 
 tal, is replaced by that of so carrying it on that the consumers, 
 whether producers or not, should get the greatest possible 
 benefit out of it." * 
 
 Mr. Neale, while adhering to the federative scheme, as 
 diminishing the risk that must inevitably accompany individual 
 action, believes that in any system of co-operative production 
 the worker should acquire the profits, after the remuneration of 
 capital by payment of interest, and that the consumer ou:ht 
 not to share in the profits of production. He believes further, 
 
 u That it is quite practicable to carry on production in close con- 
 nection with a distributive centre, under conditions which will prevent 
 
 * Manual for Co-operators (published by the Central Co-operative Board), page 133. 
 
DISTRIBUTIVE CO-OPERATION. 79 
 
 any competitive conflict among the producers, without withdrawing 
 from the workers any of the advantages derivable from their work." * 
 
 He has also clearly shown, enforcing his argument by the sig- 
 nificant statistics of the extensive Leicester Shoe Works, and 
 of the spinning companies at Oldham, that 
 
 " Large as the total proceeds of any work may be vast as may 
 be the establishments where the production is carried on imposing 
 as the result may appear when the net profits of such great works 
 are concentrated in the hands of a few persons these profits when 
 divided among the host of workers engaged in producing them will 
 make but a small addition to the sum that those workers would earn. 
 Naturally, if they are to be further diluted by division among the 
 large body of persons who may have made purchases, the benefit 
 must be proportionately diminished.''! 
 
 And he goes on to suggest that the collective income, instead 
 of being frittered away in minute dividends to each worker, 
 might by agreement be employed in associated action to create 
 better conditions of life, such, for example, as private em- 
 ployers, like Sir Titus Salt, have attempted to confer upon their 
 workpeople, or such as have been secured through the associ- 
 ated homes projected by M. Godin, at Guise. 
 
 While these various theories prevail, little has actually been 
 done. Disregarding all such concerns as the spinning com- 
 panies at Oldham, which, though frequently termed co-opera- 
 tive, are absolutely joint stock companies dividing profits on 
 stock, held at present by workers chiefly, but liable at any 
 time to change ownership, and, in any event, no different in 
 principle or administration from the ordinary joint stock cor- 
 poration, there are a few productive societies in Great 
 Britain that permit workers, as workers, to share in profits 
 and are managed by the workers themselves. Many of these 
 have share capital also, to which part of the profits go, and 
 some admit customers to participation in the dividend. The 
 following table exhibits these societies at the beginning of 
 1884 : 
 
 * Manual for Co-operators, page 139. 
 
 t Seventeenth Annual Co-operative Congress ; preface to Report, page IV. 
 
80 
 
 A MANUAL OF 
 
 Co-operative Productive Societies. 
 
 NAME. 
 
 Date 
 estab- 
 lished. 
 
 BUSINESS. 
 
 Yearly 
 Sales. 
 
 Yearly 
 Profits. 
 
 METHOD OP DIVIDING 
 
 PROFITS. 
 
 
 
 
 
 
 
 
 
 Arnold Manufacturing, 
 
 1868 
 
 Hosiers. 
 
 200 
 
 
 Between shareholders 
 
 
 
 
 
 
 and workers. 
 
 Airedale Manufactur- 
 
 1872 
 
 Alpacas, cords, 
 
 5,799 
 
 427 
 
 Between shareholders, 
 
 ing. 
 
 
 etc. 
 
 
 
 customers, and work- 
 
 
 
 
 
 
 ers. 
 
 Cobden Mills, 
 
 1867 
 
 Calicoes. 
 
 52,264 
 
 _ 
 
 Between shareholders 
 
 
 
 
 
 
 and workers. 
 
 Coventry Watchmak- 
 
 1876 
 
 Watches. 
 
 2,623 
 
 278 
 
 Between shareholders, 
 
 ers, 
 
 
 
 
 
 customers, and work- 
 
 
 
 
 
 
 ers. 
 
 Co-operative Printers, . 
 
 1869 
 
 Printers and sta- 
 
 33,589 
 
 2,789 
 
 Between shareholders, 
 
 
 
 tioners. 
 
 
 
 customers, and work- 
 
 
 
 
 
 
 ers. 
 
 Dudley Nailmakers, . 
 
 1874 
 
 Nailmakers. 
 
 1,212 
 
 83 
 
 Between shareholders 
 
 
 
 
 
 
 and workers. 
 
 Dunfermline Manufact- 
 
 1872 
 
 Damask table linen. 
 
 1,672 
 
 67 
 
 No details. 
 
 uring, 
 
 
 
 
 
 
 Eccles Manufacturing, 
 
 1861 
 
 Quilts and toilet 
 
 9,767 
 
 1,058 
 
 Between shareholders 
 
 
 
 covers. 
 
 
 
 and workers. 
 
 Edinburgh Printers, . 
 
 1873 
 
 Printers and sta- 
 
 3,027 
 
 236 
 
 No details. 
 
 
 
 tioners. 
 
 
 
 
 Framemakers and 
 
 1858 
 
 Carvers, gilders, 
 
 6,389 
 
 _ 
 
 Between shareholders 
 
 Gilders, London, 
 
 
 and general deco- 
 
 
 
 and workers. 
 
 
 
 rators. 
 
 
 
 
 Hebden Bridge Manu- 
 
 1870 
 
 Fustian cutters, 
 
 22,103 
 
 1,980 
 
 Between shareholders, 
 
 facturing, 
 
 
 etc. 
 
 
 
 customers, and work- 
 
 
 
 
 
 
 ers. 
 
 Howley Park Quarry, . 
 
 1872 
 
 Stoneworkers. 
 
 3,624 
 
 500 
 
 No details. 
 
 Lancashire and York- 
 
 1873 
 
 Flannels. 
 
 16,396 
 
 43 
 
 Between shareholders 
 
 shire Productive, 
 
 
 
 
 
 and customers. 
 
 Leek Silk Twist Manu- 
 
 1874 
 
 Silk thread. 
 
 2,688 
 
 2 
 
 No details. 
 
 facturing, 
 
 
 
 
 
 
 Leicester Manufactur- 
 
 1876 
 
 Hosiers. 
 
 6,273 
 
 133 
 
 Between shareholders, 
 
 ing, 
 
 
 
 
 
 customers, and work- 
 
 
 
 
 
 
 ers. 
 
 Leicester Elastic Web, 
 
 1878 
 
 Web weavers. 
 
 4,493 
 
 129 
 
 No details. 
 
 Sheepshed Manufact- 
 
 1881 
 
 Hosiers. 
 
 92 
 
 _ 
 
 Between shareholders 
 
 uring, 
 
 
 
 
 
 and workers. 
 
 Sheffield Cutlery Manu- 
 
 1873 
 
 Knives and scis- 
 
 439 
 
 69 
 
 No details. 
 
 facturing, 
 
 
 sors. 
 
 
 
 
 Sheffield Haft and Scale 
 
 1876 
 
 Haft makers. 
 
 3,906 
 
 125 
 
 No details. 
 
 Cutting, 
 
 
 
 
 
 
 Paisley Manufacturing, 
 
 1861 
 
 Plaids, shawls, etc. 
 
 11,891 
 
 568 
 
 Between shareholders, 
 
 
 
 
 
 
 customers, and work- 
 
 
 
 
 
 
 ers. 
 
 Northamptonshire Pro- 
 
 1881 
 
 Bootmakers. 
 
 1,662 
 
 128 
 
 Between shareholders 
 
 ductive, 
 
 
 
 
 
 and workers. 
 
 Walsall Manufacturing, 
 
 1874 
 
 Lockmakers. 
 
 3,986 
 
 " 
 
 No details. 
 
 The above table is extracted from " Workingmen Co-opera- 
 tors," page 103. The same work is also our authority for the 
 statement, attributed to a leading co-operator, that 224 co- 
 operative productive societies registered under the Industrial 
 and Provident Societies Act have been dissolved. Of these, 
 156 were small joint stock companies with no co-operative 
 element in them ; 44 divided profits between capitalists and 
 customers ; and 24 between capitalists, customers, and 
 workers. 
 
DISTRIBUTIVE CO-OPERATION. 81 
 
 The Registrar's returns for the year ending December 3, 1883, 
 exhibit 34 so-called productive societies in England and Wales, 
 and 4 in Scotland. But of these, 14 were corn (flour) mills, 
 in which it is not usual to admit workers to share in profits, 
 and two were agricultural. 
 
 This brief record appears to be all that co-operative produc- 
 tion has at present to exhibit in Great Britain. 
 
 CO-OPERATION IN FRANCE.* 
 
 The social hopes fostered in France by the political revolu- 
 tion of 1848 were partly realized in the formation of large 
 numbers of co-operative societies. The enthusiasm of the 
 moment and the influence of government patronage stimulated 
 the movement, but few possessed sufficient vitality to long sur- 
 vive. The re-establishment of the empire in 1852 was an 
 event at first decidedly unfavorable to their progress, but in 
 1864 co-operation at Paris once more revived, and later was 
 assisted by favorable legislation. In 1870, 20 workingmen's 
 co-operative societies engaged in production existed at Paris 
 and at present there are more than 70 such societies. Outside 
 of Paris few such societies exist. 
 
 The following details are tabulated from statistics published 
 by the Bureau des Associations Professionelles : 
 
 * Authorities : M. Nicole, of the Consolidated Chamber of the Workingmen's Pro- 
 ductive Association of the Department of the Seine. Evidence before a Parliamentary 
 Commission. Report of the Bureau des Associations Professionelles. 
 
A MANUAL OF 
 
 The Co-operative 
 
 NAME OF THE ASSOCIATION. 
 
 French. 
 
 English. 
 
 Appareils a gaz (Ouvriers fabricants d'), 
 
 Argonnieurs ferreurs, 
 Bailment (Societe generale du), . 
 4 Bijoutiers en dore (Association des), . 
 Bijoutiers en double (Association des) , 
 6 Bijoutiers-joailliers (Association des) , 
 Chapeliers (Association generale ouyriers), 
 Charrons (Association collective des), 
 Charpentiers de la Seine v Association des) , 
 
 Dharpentiers de la Villette (Association des) , . 
 Cimentiers (Association generale dee ouvriers), 
 Cimentiers (Societe des ouvriers reunis), . 
 Cochers (La nouvelle association des), 
 tellers (L'Eeperance, Association des), . 
 
 14 
 
 15 Cochers (Association des), 
 
 Cochers (L'unipn des), 
 Cochers (L'Alliance, Association dec), 
 Dochers (La Parisienne, Association des), 
 tochers (La Moderne, Association des), 
 
 41 
 
 42 
 
 43 
 
 44 Menuisiers et bailments, 
 
 45 
 
 Lunetiers 
 Magons et ta 
 
 (Societe des), 
 tailleurs de Pi 
 
 erre (L'union des ouvriers) , 
 
 Menuisiers d'art et batiments, 
 46 Menuisiers en sieges, 
 
 Menuisiers en voitures, 
 
 48 Moniteur des Syndicate ouvriers, 
 
 49 Opticiens (Association general des ouvriers), 
 
 50 Orfevrerie Association ouvriere d'), . 
 
 Papetiers regleurs (Association des) 
 Parqueteurs (Societe co-operative des), 
 Parqueteurs (Association d'ouvriers), 
 
 54 Parqueteurs (Association Parisienne des) , 
 
 55 
 
 Passementiers (Association des ouvriers) , 
 
 56 Paveurs (Association generale d'ouvriers), 
 
 57 jPaveurs (Association de), . 
 
 58 Peintres en batiment (Travail des), . 
 
 59'Peintres en bailment (L'union des), . 
 
 eOJPeintres de Paris (La Securite de), . 
 
 61 (Restaurateurs (Societe co-operative des), . 
 
 62; Sacs de dames et de voyage, 
 
 63 Sculpteursde Paris (L'union des), . 
 
 64 1 Sculpture (Association co-operative de la), 
 
 65 Sellerie Parisienne (Association de la), 
 
 66'Serrurieurs en meubles 
 
 67 Tailleurs (Association generale des) , . 
 
 68 Tailleura de limes 
 
 Working gas apparatus makers, 
 Saddle bow binders, . 
 Builders, 
 
 | Different kinds of jewellers, 
 
 Working hat makers, 
 Wheelwrights, . 
 
 20 Cochers (La Montrougienne, Association des), . 
 
 21 Cochers (Le Progres, Association des), 
 Couvreurs, plombiers, zingueurs, .... 
 
 23 Ebenistes (L'Avenir, Association des), 
 
 24 Ebenisterie Parieienue (L'), 
 
 25 Ebenisterie (Association de 1'), 
 
 26 Ebenistes (Societe geuerale f rangaise d'ameublement), 
 
 27 Ebenisterie (Association syndic, des), 
 
 28 Facteurs d'anches, 
 
 29 Facteurs de pianos (Association des) , 
 
 30 Facteurs de pianos (L'Union, Association des), 
 
 31 Facteure d'instruments de musique, .... 
 
 32 Ferblantiers, lanternes, compteurs, , . . . 
 
 33 Ferblantiers-boitiers (Association des), 
 
 34 Formiets (Association des), 
 
 35 Horologers f Societe anonyme des) , 
 
 36 Imprimerie nouvelle (Association de 1') , . 
 
 37 Jardiniers (Association co-operative des), . 
 Joailliera bijouticrs a fagon, 
 
 39 Journal Officicl (Association co-operation du), . 
 
 40 Limes (Association des ouvriers en), . 
 Lithographes de Paris (Association des), . 
 
 Working carpenters, . 
 Working cement makers, . 
 
 Coachmen or cab drivers, . 
 
 Slaters, plumbers, and zinc workers, 
 
 Cabinet makers, . 
 
 Reedmakers, 
 
 > Pianoforte makers, .... 
 
 Musical instrument makers, 
 / Tinworkers, lantern, and meter ma- 
 i kers 
 
 Tin box makers, .... 
 
 Model makers, 
 
 Watchmakers, 
 
 Printers, . . . 
 
 Gardeners, . ... 
 
 Jewellers, . 
 
 Newspaper publishers, 
 
 Working file makers, 
 
 Parisian lithographers, 
 
 Spectacle makers, 
 
 Working masons and stone cutters, 
 
 Different kinds of joiners, 
 
 Trades Union newspaper, 
 Working opticians, .... 
 Working goldsmiths, 
 Ruled-paper makers 
 
 Inlaid floor makers, .... 
 
 Working lace makers, 
 | Working pavers, .... 
 
 > House painters, 
 
 Co-operative restaurant, . 
 Makers of ladies' and traveller's bags, 
 
 | Sculptors, 
 
 Saddlers, 
 
 Furniture locksmiths, 
 
 Tailors, 
 
 File cutters, 
 
DISTRIBUTIVE CO-OPERATION. 
 
 83 
 
 Societies of Paris. 
 
 Date of 
 Formation. 
 
 CAPITAL. 
 
 Number 
 of Asso- 
 ciates. 
 
 WHETHEB AUXILIARIES 
 SHARE IN PROFITS. 
 
 Value of Work 
 Done. 
 
 Subscribed. 
 
 Paid up. 
 
 No. 
 
 Yes. 
 
 
 *. 
 
 s. 
 
 
 
 
 8. 
 
 
 
 
 
 15 
 
 _ 
 
 _ 
 
 
 July 1, 1881 
 
 180 
 
 140 
 
 7 
 
 No 
 
 _ 
 
 3,400 
 
 Jan. 24, 1882 
 
 20,000 
 
 5,000 
 
 191 
 
 No 
 
 _ 
 
 8,000 
 
 Dec. 26, 1882 
 
 816 
 
 700 
 
 12 
 
 _ 
 
 Yes 
 
 4,480 
 
 January, 1882 
 
 1,000 
 
 1,000 
 
 160 
 
 No 
 
 - 
 
 1,440 
 
 July 27, 1882 
 
 1,800 
 
 840 
 
 26 
 
 No 
 
 _ 
 
 _ 
 
 Dec. 12, 1883 
 
 400 
 
 280 
 
 88 
 
 _ 
 
 Yes 
 
 640 
 
 Oct. 26, 1883 
 
 400 
 
 162 17 
 
 23 
 
 No 
 
 _ 
 
 1,626 16 
 
 Feb. 18, 1881 
 
 606 
 
 491 16 
 
 40 
 
 No 
 
 _ 
 
 24,000 
 
 Nov. 21, 1881 
 
 3,200 
 
 3,200 
 
 183 
 
 No 
 
 _ 
 
 40,000 
 
 Aug. 22, 1881 
 
 240 
 
 282 
 
 17 
 
 No 
 
 _ 
 
 16,280 
 
 Sept. 25, 1884 
 
 320 
 
 320 
 
 11 
 
 No 
 
 - 
 
 1,200 
 
 Mar. 21, 1883 
 
 1,760 
 
 1,080 
 
 73 
 
 No 
 
 _ 
 
 16,000 
 
 Feb. 9, 1884 
 
 3,280 
 
 2,765 19 
 
 41 
 
 _ 
 
 Yes 
 
 16,457 8 
 
 Dec. 9, 1&74 
 
 24,000 
 
 18,504 10 
 
 102 
 
 No 
 
 _ 
 
 120,000 
 
 Dec. 1, 1873 
 
 14,200 
 
 14,200 
 
 129 
 
 _ 
 
 Yes 
 
 _ 
 
 Feb. 12, 1882 
 
 6,080 
 
 10,000 
 
 105 
 
 No 
 
 _ 
 
 _ 
 
 Oct. 1, 1879 
 
 6,880 
 
 5,600 
 
 43 
 
 No 
 
 _ 
 
 _ 
 
 Oct. 1, 1881 
 
 8,640 
 
 7,800 
 
 54 
 
 No 
 
 _ 
 
 _ 
 
 Nov. 30, 1881 
 
 9,600 
 
 7,726 
 
 60 
 
 _ 
 
 Yes 
 
 
 Mar. 21, 1883 
 
 1,760 
 
 880 
 
 73 
 
 No 
 
 _ 
 
 
 Aug. 27, 1883 
 
 800 
 
 720 
 
 27 
 
 _ 
 
 Yes 
 
 6,000 
 
 Aug. 24, 1879 
 
 1,020 
 
 740 
 
 48 
 
 No 
 
 _ 
 
 20,000 
 
 Nov. 30, 1881 
 
 2,800 
 
 1,400 
 
 130 
 
 _ 
 
 _ 
 
 2,800 
 
 June 30, 1884 
 
 760 
 
 240 
 
 19 
 
 _ 
 
 Yes 
 
 
 April 14, 1884 
 
 320 
 
 180 
 
 10 
 
 _ 
 
 Yes 
 
 4,400 
 
 July 24, 1884 
 
 320 
 
 320 
 
 125 
 
 _ 
 
 
 7,000 
 
 Dec. 1, 1865 
 
 700 
 
 80 
 
 7 
 
 No 
 
 _ 
 
 40,000 
 
 1849 
 
 10,448 6 
 
 10,448 
 
 18 
 
 No 
 
 _ 
 
 240,000 
 
 April 15, 1882 
 
 540 
 
 625 11 
 
 6 
 
 _ 
 
 _ 
 
 6,400 
 
 1865 
 
 7,760 
 
 6,520 
 
 17 
 
 No 
 
 - 
 
 92,000 
 
 July, 1868 
 
 8,480 
 
 6,000 
 
 106 
 
 No 
 
 - 
 
 140,000 
 
 March, 1875 
 
 3,680 
 
 2,800 
 
 39 
 
 _ 
 
 _ 
 
 160,000 
 
 Nov. 17, 1849 
 
 2,320 
 
 1,545 14 
 
 12 
 
 No 
 
 _ 
 
 102,000 
 
 Aug. 8, 1882 
 
 640 
 
 393 12 
 
 20 
 
 No 
 
 _ 
 
 3,240 
 
 Nov. 12, 1869 
 
 8,000 
 
 8,000 
 
 1,348 
 
 No 
 
 _ 
 
 160,000 
 
 Mar. 16, 1881 
 
 600 
 
 312 
 
 30 
 
 - 
 
 Yes 
 
 548 
 
 Feb. 5, 1881 
 
 224 
 
 224 
 
 28 
 
 _ 
 
 Yes 
 
 88,000 
 
 Sept. 27, 1848 
 
 8,400 
 
 6,890 17 
 
 21 
 
 No 
 
 
 194,640 
 
 March, 1866 
 
 20,000 
 
 20,000 
 
 250 
 
 _ 
 
 _ 
 
 120,360 
 
 Aug. 6, 1849 
 
 89,600 
 
 53,262 10 
 
 112 
 
 No 
 
 _ 
 
 1,200,000 
 
 March, 1885 
 
 400 
 
 900 
 
 15 
 
 _ 
 
 Yes 
 
 
 Feb. 21, 1884 
 
 420 
 
 245 7 
 
 7 
 
 _ 
 
 Yes 
 
 1,235 10 
 
 Mar. 27, 1884 
 
 240 
 
 240 
 
 12 
 
 _ 
 
 Yes 
 
 2,640 
 
 Nov. 16, 1848 
 
 64 
 
 64 
 
 16 
 
 No 
 
 _ 
 
 306,911 4 
 
 
 
 _ 
 
 
 
 _ 
 
 _ 
 
 _ 
 
 
 Nov. 4, 1882 
 
 1,000 
 
 600 
 
 39 
 
 _ 
 
 _ 
 
 1,240 
 
 Dec. 25, 1864 
 
 4,800 
 
 2,860 
 
 5 
 
 No 
 
 _ 
 
 64,000 
 
 Sept. 21, 1881 
 
 2,000 
 
 1,060 
 
 116 
 
 No 
 
 _ 
 
 600 
 
 May 1, 1883 
 
 2,400 
 
 365 4 
 
 6 
 
 No 
 
 _ 
 
 1,600 
 
 Oct. 22, 1881 
 
 200 
 
 192 4 
 
 12 
 
 No 
 
 _ 
 
 13,374 6 
 
 Dec. 3, 1883T 
 
 120 
 
 67 9 
 
 6 
 
 
 Yes 
 
 4,000 
 
 Aug. 7, 1884 
 
 120 
 
 24 
 
 9 
 
 _ 
 
 
 7,000 
 
 Dec. 16, 1884 
 
 600 
 
 84 
 
 _ 
 
 _ 
 
 _ 
 
 200 
 
 Feb. 11, 1883 
 
 6,440 
 
 660 
 
 - 
 
 No 
 
 _ 
 
 15,200 
 
 Feb. 17, 1883 
 
 1,440 
 
 1,460 
 
 _ 
 
 No 
 
 _ 
 
 20,000 
 
 Dec. 27, 1882 
 
 800 
 
 536 
 
 _ 
 
 _ 
 
 Yes 
 
 11,200 
 
 May 7, 1883 
 
 816 
 
 579 16 
 
 13 
 
 _ 
 
 Yes 
 
 6,520 
 
 Feb. 10, 1885 
 
 280 
 
 28 
 
 7 
 
 _ 
 
 Yes 
 
 
 
 
 _ 
 
 _ 
 
 _ 
 
 _ 
 
 _ 
 
 
 - 
 
 980 
 
 440 
 
 10 
 
 - 
 
 Yes 
 
 10,000 
 
 
 
 
 
 
 
 
 
 _ 
 
 _ 
 
 
 _ 
 
 _ 
 
 
 
 _ 
 
 _ 
 
 
 
 
 Feb. 4, 1883 
 
 880 
 
 520 
 
 117 
 
 No 
 
 _ 
 
 8,000 
 
 Feb. 19, 1850 
 
 120 
 
 120 
 
 5 
 
 
 Yes 
 
 4,560 
 
 Oct. 15, 1863 
 
 4,000 
 
 3,820 
 
 180 
 
 No 
 
 
 200,000 
 
 Dec. 24, 1868 
 
 540 
 
 540 
 
 6 
 
 
 Yes 
 
 10,000 
 
 
84 A MANUAL OF 
 
 The Co-operative Societies 
 
 NAME OF THE ASSOCIATION. 
 
 French. 
 
 English. 
 
 69 Terrassiers de la Seine, 
 
 70|Tapis8iers (Association d'ouvriers), . 
 
 7liTypograpb.es (Association la co-operation des), 
 
 72 Vanniers (Association co-operation des ouvriers), . 
 
 Terrace makers, 
 Working nnholsterers, 
 T 
 
 Society co-operative immobiliere, .... 
 
 8ociet6 co-operative (Construction des maisons 
 
 ouvrieres), 
 
 Typographers, . 
 Working basketmake 
 
 Society for loans on realty, 
 Co-operative building society, 
 
 The total number of associates exhibited by the foregoing 
 table is 4,920. These, with the auxiliaries employed, of whom 
 the number does not appear, have done work amounting to 
 3,560,258 6-9. The total paid up capital shown by the 
 table is 223,315 18s. 
 
 These societies are usually administered by a council, acting 
 through an executive officer who is termed a delegate adminis- 
 trator, director, or gerant. As might be expected some diffi- 
 culty is experienced in finding capable, active, and devoted 
 managers, and earnest and prudent councilmen. Calmness, 
 moderation, and perseverance, qualities essential to success, are 
 often lacking among associates. But, nevertheless, the condi- 
 tion of the societies is in France considered promising and the 
 outlook is thought to be encouraging. 
 
 It will be noticed that in many cases auxiliaries do not share 
 in profits. In such instances the organization would seem to 
 be a form of co-operative partnership composed of workingmen, 
 who share with each other profits in part derived from the labor 
 of auxiliaries who do not share at all. When the profits are 
 thus divided solely on the basis of shares held by the associates, 
 the organization is merely that of a joint stock company, analo- 
 gous to the Oldham mills. When the associates also share as 
 workers an additional co-operative step is taken, and, finally, 
 when, as in some of the societies, auxiliary workers are per- 
 mitted to share in profits, the co-operative features become 
 more complete. 
 
 The auxiliaries of the Carpenters Association of La Villette 
 are locksmiths, sawyers of planks, and joiners. Instead of 
 
DISTRIBUTIVE CO-OPERATION. 
 
 of Paris Concluded. 
 
 85 
 
 Date of 
 Formation. 
 
 CAPITAL. 
 
 Number 
 of Asso- 
 
 WHETHER AUXILIABIES 
 SHARE IN PROFITS. 
 
 Value of Work 
 Done. 
 
 
 
 
 
 
 Subscribed. 
 
 Paid up. 
 
 ciates. 
 
 No. 
 
 Yes. 
 
 
 
 8. 
 
 s. 
 
 
 
 
 . 
 
 Jan. 1, 1885 
 
 80 
 
 8 
 
 6 
 
 _ 
 
 
 
 
 Feb. 27, 1884 
 
 294 
 
 202 12 
 
 96 
 
 _ 
 
 _ 
 
 1,600 
 
 Dec. 26, 1881 
 
 400 
 
 360 
 
 24 
 
 _ 
 
 _ 
 
 4,185 2 
 
 Mar. 1, 1882 
 
 80 
 
 64 
 
 18 
 
 No 
 
 - 
 
 1,080 
 
 Dec. 15, 1867 
 
 5,600 
 
 5,600 
 
 369 
 
 No 
 
 - 
 
 19,200 
 
 participating in profits they are paid a larger wage than that 
 allowed by private employers. Provision is also made for an 
 allowance to any auxiliary who is injured while at work, usu- 
 ally amounting to one-half the customary wage for the time the 
 disability continues. 
 
 The auxiliaries employed by the Association of Working File 
 Makers, although not allowed to share in profits, are admitted 
 as associates, without the payment of any fee, after six months' 
 employment by the society. In other societies, notably the 
 Association of Pianoforte Makers, a similar custom prevails. 
 
 Many societies have a fund for the care of superannuated 
 members, for insurance in case of accident or death, etc. Most 
 have certain conditions as prerequisites to membership, de- 
 signed to secure the moral, physical, and industrial fitness of 
 those who desire to join. Some require candidates to serve a 
 period of probation before admission. 
 
 The mode of allotment of profits varies. In some societies a 
 fixed rate of interest is paid to shareholders, and the balance, 
 after providing for the maintenance of reserves, insurance, and 
 similar funds, if any, is divided among associate workers, or 
 among associates and auxiliaries, as the case may be. Several 
 societies, which permit auxiliaries to share, restrict the amount 
 of profit out of which such share must be paid. For instance, 
 in the General Society of French Cabinet Makers, auxiliaries 
 participate in 25 per cent of the profits, and the Society of 
 Furniture Locksmiths permit auxiliaries to share in profits in 
 the proportion of 10 per cent on the proceeds of their work. 
 Some societies divide all profits on the basis of work performed. 
 
86 A MANUAL OF 
 
 The Association of File Cutters, in the division of profits, 
 awards to capital 20 per cent and to labor 80 per cent. 
 
 CO-OPERATION IN GERMANY.* 
 
 German co-operation has three modes of development, viz : 
 people's banks, consumers' societies, and trade societies. Of 
 these the people's banks a form of co-operative savings 
 bank, are the most numerous, the trade societies ranking 
 next. In 1883, the number of each class was as follows : peo- 
 ple's banks, 1,910; trade societies, 1,031 ; consumers' societies, 
 676. 
 
 The trade societies so-called include two classes, industrial 
 societies and agricultural societies. These may be more 
 minutely classified as follows : 
 
 Industrial Societies. 
 
 Raw material supply, 145 
 
 Magazines, .......... 59 
 
 Productive, . . . 149 
 
 Agricultural Societies. 
 
 Agricultural consumers' supply 305 
 
 Implement supply and stock raising, 171 
 
 Productive agriculture, . 198 
 
 Total industrial societies, 353 ; total agricultural societies, 674 ; 
 societies not included under the foregoing heads, 4 ; aggregate, 
 1,031. 
 
 The co-operative movement in Germany began with the raw 
 material supply associations founded by Schulze-Delitzsch, for 
 the purpose of enabling handicraftsmen in different trades to 
 purchase by wholesale the materials required in the prosecu- 
 tion of their industries so as to allow them to compete with 
 extensive manufacturers. The object of these societies was to 
 uphold hand labor against the encroachments of factory indus- 
 try, by thus obtaining for handworkers through association the 
 advantages possessed by capitalists, and to deliver them from, 
 middlemen who furnished inferior material at high prices. 
 
 "Where the raw material societies have organized themselves 
 * Authority : Dr. Schneider of Potsdam. 
 
DISTRIBUTIVE CO-OPERATION. 87 
 
 according to the advice of Schulze-Delitzsck, and avoided the errors 
 against which he over and over again warned them, they have accom- 
 plished this object to the benefit of the German handwork, and pre- 
 served to many German handicraftsmen their independent businesses. 
 If we consider that, according to the trade statistics of 1882, there 
 were in the shoemaking trade alone 245,118 independent handwork- 
 ers, who, in spite of the prophecies uttered more than 20 years since 
 by Ferdinand Lassalle and Karl Marx, still carry on the shoemaking 
 business on their own account and will not consent to be wage- 
 receivers, we cannot close our eyes to the fact that millions of 
 Germans have the most pressing interest in the preservation of 
 handicrafts. ********* 
 
 The raw material societies of the handworkers could have given 
 greater help in this contest if several of them had not ruined them- 
 selves by grave mistakes, because, unfortunately, the bad custom of 
 the handworker giving credit sometimes long credit to his cus- 
 tomers, without any compensation, is widely spread in Germany. 
 The workers often demanded of the raw material societies to sell to 
 them on credit at the same price as if they had paid ready money. 
 Many societies have given way to this unjustifiable claim, and sunk 
 under the consequent loss of capital and interest. Hence the num- 
 ber of raw material societies is not increasing." * 
 
 The 145 raw material societies included the following trades : 
 joiners and instrument makers, 21 ; spinners and weavers, 17 ; 
 meal and bread producers, 14 ; printers and lithographers, 11 ; 
 tailors, 10; brewers, 7; butchers, 7; carpenters and masons, 
 6 ; cigar makers, 6 ; clock and watch makers, distillers, metal 
 workers, and shoemakers, 5 each ; machinists, and sugar 
 makers, 4 each; gilders and potters, 3 each; brush and comb 
 makers, miners, personal services, and sewing machine makers, 
 2 each; bookbinders, glass makers, plumbers and lacquerers, 
 and starch makers, 1 eacb. 
 
 The industrial magazines are co-operative commission con- 
 cerns whose business it is to sell at a common magazine or 
 depot the goods produced by their members. The larger num- 
 ber are engaged in the sale of carpenters and joiners' products. 
 
 The industrial productive societies are mainly confined to 
 hand labor and to the smaller industries. A notable exception 
 is that of the largest German manufactory of chronometers, 
 
 * Dr. Schneider of Potsdam. 
 
88 A MANUAL OF 
 
 which is conducted on the co-operative plan. Co-operation 
 when applied to factory labor in Germany has not been very 
 successful. 
 
 "Productive societies formed for the purpose of selling their wares 
 to the consumers' societies, and supplied with capital by them exist 
 * * * only as exceptions. A society of this kind was the Berlin 
 Bakers' Society, which long since came to grief through bad manage- 
 ment. Most of the productive societies have been founded without 
 any reference to the wants of the consumers' societies, by small 
 groups of artisans or laborers who were all to be at once employers 
 and workers. The business of the society was their only source of 
 income. If anything went wrong with their business, all the mem- 
 bers came into difficulty. This may in many cases have bound all 
 the members together, and steeled their energies, but it tended also 
 to make them indisposed to the admission of new associates, which 
 naturally came into question only when the business was again going 
 on prosperously. The members who had fought through the time of 
 need alone, wished alone to reap the fruits of the good time. This 
 was not associative, and was vigorously opposed by Schulze- 
 Delitzsch, but it was natural, and explains the circumstance that in 
 many old and successful productive societies the number of members 
 is slowly diminishing. In some, though this is not publicly known, 
 the number of members has shrunk to such an extent that they are 
 no longer societies, but have become trading partnerships." * 
 
 The agricultural co-operative societies appear to be quite 
 successful and are increasing. 
 
 The agricultural consumers' supply societies afford their 
 members facilities for purchasing in common seeds, manures, 
 etc., and secure to them the advantage of subjecting to chemi- 
 cal analysis goods offered to them for purchase, so as to test 
 the genuineness of the articles. Others, existing among land- 
 owners, known as implement societies, provide agricultural 
 machines owned in common and loaned to members. Still 
 others have for their object the improvement of breeds of cattle, 
 and, finally, the productive agricultural societies are engaged in 
 dairying and wine making. 
 
 There exists in Germany a co-operative union founded by 
 Schulze-Delitzsch, and, since 1883, a union of the agricultural 
 
 * Dr. Schneider. 
 
DISTRIBUTIVE CO-OPERATION. 89 
 
 societies, having for its special object the advancement of this 
 form of co-operation. 
 
 Of the 676 consumers' societies only 172, having a total 
 membership of 110,433, made returns in 1883. These present 
 the following statement : 
 
 Number of societies making returns, 172 
 
 Number of members, .' 110,433 
 
 Total sales, 1,634,215 2s. 
 
 Average sales of each society, .... 9,501 5s. 
 
 Members' capital, . . . . . . 157,625 9s. 
 
 Reserves, 73,883 13s. 
 
 Loan capital, 150,517 9s. 
 
 Amount owing for goods, 20,494 9s. 
 
 Net profits, 123,114 14s. 
 
 Amount due from members (in 48 societies), . 6,112 5s. 
 
 Applied to educational purposes, . . . 1,250 9s. 
 
 The largest consumers' society is at Breslau. It had, in 
 1883, 22,775 members, and during that year its sales amounted 
 to 241,635 2s. ; the net profit being 25,357 18s. A large 
 steam bakery is conducted by the society. 
 
 Building societies have met with poor success in Germany, 
 and have been unable to compete with private enterprise. 
 
 Dr. Schneider has compiled the following statistics respect- 
 ing the membership of the people's banks and consumers' 
 societies, and concerning which he makes this statement : 
 
 "I add a tabular view of the composition of the members in the 
 people's banks and consumers' societies, classified according to their 
 occupations, whence the difference in the character of these two 
 classes of societies, notwithstanding the similarity of their objects, 
 appears. The members of the raw material and productive societies 
 belong, with few exceptions, to the corresponding trades, although, 
 so far back as 1868, the productive societies were urged, in order to 
 increase their power of bearing losses, to draw in non- workers as 
 members." 
 
 The table shows the percentages of membership of each class 
 in the people's banks and consumers' societies based upon the 
 returns for 1882 and 1883. Dr. Schneider is of the opinion 
 that had the statistics covered all the societies instead of those 
 
90 
 
 A MANUAL OF 
 
 making returns only, the result would not have been materially 
 different. 
 
 Classification of Membership in People's Banks and Consumers' 
 
 Societies. 
 
 
 PEOPLE'S BANKS. 
 
 CONSUMERS' SOCIETIES. 
 
 
 Percentages by years. 
 
 Percentages by years. 
 
 CLASSIFICATION OF MEMBERSHIP. 
 
 
 
 
 1883 
 
 1883 
 
 1883 
 
 1883 
 
 Independent land cultivators, gardeners, forest- 
 ers and fishers 
 
 25.4 
 
 25.4 
 
 3.7 
 
 3.7 
 
 Assistants and laborers of the foregoing, 
 
 3.0 
 
 3.1 
 
 3.9 
 
 3.87 
 
 Manufacturers, and persons engaged in mining 
 
 
 
 
 
 and building 
 
 3.65 
 
 3.6 
 
 1.6 
 
 1.7 
 
 Independent handworkers, 
 
 31.2 
 
 30.9 
 
 15.3 
 
 15.0 
 
 Workers in factories and mines, and assistants 
 
 
 
 
 
 of handworkers 
 
 4.7 
 
 4.8 
 
 40.4 
 
 41.2 
 
 Independent traders and dealers 
 
 9.6 
 
 9.6 
 
 4.0 
 
 4.0 
 
 Clerks and assistants to traders, .... 
 
 0.7 
 
 0.7 
 
 1.6 
 
 1.4 
 
 Carriers, shipowners, and innkeepers, . 
 Letter carriers, employes in railway, telegraph, 
 
 5.2 
 
 5.1 
 
 2.5 
 
 2.4 
 
 and post offices, laborers on railways, mariners, 
 
 
 
 
 
 and waiters, ........ 
 
 1.9 
 
 1.9 
 
 7.7 
 
 7.2 
 
 Male and female servants, 
 
 1.6 
 
 1.0 
 
 1.7 
 
 2.8 
 
 Physicians, apothecaries, teachers, artists, writ- 
 ers, officials of church, state, or municipal 
 
 
 
 
 
 bodies, 
 
 6.7 
 
 6.7 
 
 10.5 
 
 10.8 
 
 Persons of independent income, 
 
 7.4 
 
 7.6 
 
 7.1 
 
 6.5 
 
 Number of societies making returns, . 
 
 819 
 
 825 
 
 166 
 
 160 
 
 CO-OPERATION IN AUSTRIA.* 
 
 In Austria, the statute of November 26, 1852, permitted 
 the formation of co-operative societies with unlimited liability. 
 An important change was effected by the law of July 1, 1873, 
 which required all societies ' the number of whose members 
 is unlimited, which seek to benefit their members in their trade 
 or household economy by carrying on business in common " to 
 register at the government registration office. Such societies 
 may be organized ' ' either with or without limitation of liabil- 
 ity, as they determine, the measure of liability in the first case 
 being fixed by their rules." 
 
 Unregistered societies formed under the previous law must 
 register upon making any change in their rules and are gradu- 
 aly becoming extinguished. By a subsequent statute, Jan- 
 uary 1, 1880, societies which confine their dealings to their 
 own members are exempt from the traders' tax. Income tax 
 
 * Authority : Dr. H. Ziller, of the Austrian Co-operative Union. 
 
DISTRIBUTIVE CO-OPERATION. 91 
 
 is levied on their net profits, with exemptions and allowances 
 when the yearly income is less than 2,300 florins. 
 
 According to the report of Dr. Ziller, who is at the head of 
 the co-operative societies formed in the Austrian empire, the 
 total number of such societies within Austrian territory in 1881 
 was 1,515. Of these, 317 were unregistered and 1,198 regis- 
 tered. Five hundred and seventy-two registered societies were 
 with limited liability and 626 unlimited. One thousand one 
 hundred and twenty-nine, or 74.5 per cent of all the societies, 
 were people's banks ; two hundred and thirty-five, or 15.5 per 
 cent, were distributive societies ; and the balance were as fol- 
 lows : raw material supply, 6 ; agricultural material supply, 
 14 ; stores, 3 ; artisan productive, 41 ; agricultural productive, 
 61 ; building, 5 ; trading, 10 ; assurance, 2 ; various, 9. These 
 statistics include Lower and Upper Austria ; Lutzburg ; the 
 Tyrol ; Vorarlberg ; Styria ; Carinthia ; Krain ; the Coast Land ; 
 Bohemia ; Moravia ; Silesia ; Galicia ; Bukowina ; and Dal- 
 matia. 
 
 Co-operative distribution does not appear to be very flourish- 
 ing. It is stated that the number of such societies is scarcely 
 half that formerly existing. The reasons given for the failure 
 of those that have been dissolved are commercial depressions 
 affecting the earnings of those connected with them, heavy 
 taxes assessed on them as traders in certain districts, and bad 
 management of a large number which were formed for political 
 purposes. 
 
 Besides the societies which deal in the usual groceries in 
 common demand, a few grind corn, some hare bakeries at- 
 tached, and some sell butcher's meat ; but the latter has not 
 generally been found profitable. Most of the societies sell 
 beer and spirits. Drapery and shoes, crockery, hardware, 
 and wooden goods are supplied by some. The credit system 
 exists and the practice of giving credit appears to be increas- 
 ing. As a consequence the societies which made returns were 
 owing more than 33 per cent of the value of their stock in 
 trade. Less than half the societies made returns for the year 
 1881, and some of these returns were imperfect. Of those 
 that made returns the average membership was 630. The in- 
 formation as to application of profits was especially defective. 
 The following general statement is made : 
 
92 A MANUAL OF 
 
 " Many societies, which sell at the lowest practicable prices, make 
 no division of profits, but carry them wholly to reserve. Others, 
 which sell only to their own members, have introduced the practice 
 of distributing profits as dividend on purchases, with very favorable 
 results in their business, which are more favorable than tl\ose ob- 
 tained in the earlier method, adopted from the practice of the 
 people's banks, of dividing the profits in proportion to the paid-up 
 capital, which is preserved in the case of the profits from the sales 
 to non-members." 
 
 Of the artisans' productive societies many, it is stated, have 
 failed because formed to take control of private enterprises 
 that had not been successful. When formed independently by 
 workers possessing sufficient capital to enable them to avoid 
 debt they have succeeded when there was a fair opening for 
 business. Some have failed on account of internal dissensions. 
 Although 41 productive societies of the artisan class are in- 
 cluded in the statistics we have quoted, only 12 made returns 
 for the year, and the details are too meagre to afford much 
 light as to the general condition of all the societies. Taxation, 
 in the form of trading licenses, appears to seriously interfere 
 with the prosperity of these societies and, for local reasons, to 
 discriminate against them as compared with private concerns. 
 
 Most of the agricultural productive societies confine their 
 operations to dairying. Scarcely any details appear as to 
 these or the other societies enumerated, very few having made 
 returns. 
 
 CO-OPERATION IN DENMARK.* 
 
 Co-operation in this country appears to be confined to con- 
 sumers' distributive societies. About 150 such societies are 
 believed to exist. Seventy have been grouped in a wholesale 
 union. 
 
 The source of co-operative effort here seems to have been 
 the English societies, the success of which impressed the late 
 Pastor Sonne, who published a work entitled "Workmen's 
 Co-operative Societies in England," thus leading directly to the 
 formation of Danish societies. Since the year 1870, the move- 
 ment has grown in importance and appears likely to increase 
 
 * Authority : Mr. J. Andrew of the Co-operative Wholesale Society, Copenhagen. 
 
DISTRIBUTIVE CO-OPERATION. 93 
 
 still farther under the present organization. A monthly 
 periodical devoted to the interests of co-operators is now 
 issued by the wholesale society. 
 
 CO-OPERATION IN SPAIN.* 
 
 Co-operation has as yet made no progress in Spain. One or 
 two small associations exist, but not in a very flourishing con- 
 dition. A society established at Bilbao, and also one in Gijon, 
 soon failed on account of bad management. 
 
 CO-OPERATION IN HUNGARY.f 
 
 Distributive co-operation in Hungary, although instituted 
 some years ago, has made little progress. Of late slightly 
 more life has been apparent in the movement, but statistics 
 respecting it are very scanty. The statistical bureau of Hun- 
 gary has no data upon the subject. 
 
 Productive societies are not numerous, the chief examples 
 existing in Buda-Pesth. The chief avenue of co-operative effort 
 is the system of banking analogous to that of Germany. 
 
 Dr. Ziller, of the Austrian Co-operative Union, has presented 
 the following statistics for the societies in Hungary, Croatia, 
 and Slavonia, in the year 1883 : Total number of societies, 
 357 ; people's banks, 308 ; consumers' societies, 16 ; raw ma- 
 terial supply, 2; depots (for selling), 3; agricultural aid 
 societies, 2 ; artisans' productive societies, 6 ; agricultural pro- 
 ductive societies, 7 ; assurance societies, 8 ; miscellaneous, 5. 
 
 Five of the consumers' societies show collective sales amount- 
 ing to 234,468 florins; share capital, 33,231 florins; reserve 
 fund, 33,561 florins; loans, 1,822 florins; indebtedness for 
 goods, 6,222 florins; value of stock at end of year, 45,228 
 florins ; due from members for goods sold on credit, 17,288 
 florins. 
 
 The credit system universally prevails. The artisans' pro- 
 ductive societies represent the following trades : Clothmakers, 
 2 ; brewers, marble workers, iron workers, and lockmakers, 1 
 each. 
 
 * Authority : Mr. Robt. R. Evans, English Consul, Bilbao. 
 
 t Authorities : Dr. Stephen Bernat, of the Ministry of Agriculture, Buda-Pesth. Dr. 
 H. Ziller, of the Austrian Co-operative Union. 
 
94 A MANUAL OF 
 
 The agricultural productive societies represent dairying, 
 vine culture, and the production of silk. 
 
 CO-OPERATION IN ITALY.* 
 
 The co-operative movement in Italy began with the political 
 unification of the country, as part of the general progress of 
 the time. People's banks upon substantially the German model 
 were among the first, and are to-day leading examples of Italian 
 co-operative effort. They have increased from 4 in 1865 to 252 
 in 1883, the capital in the latter year being about 2,120,000. 
 They have been very successful, and of great benefit to certain 
 classes, chiefly the middle class traders and artisans, but have 
 not materially aided laborers, or the masses of the working 
 population. Other forms of co-operative credit and savings 
 institutions are in progress or contemplated, among others the 
 following : 
 
 U A certain number of small agriculturists, generally the very 
 smallest proprietors or farmers, unite themselves into a society with 
 unlimited liability. On this guarantee the society contracts loans at 
 the lowest attainable rate of interest, and out of the sum thus col- 
 lected makes advances to their members who apply for them, at a 
 somewhat higher rate. The bank is to act also as a savings bank. 
 These institutions are specially agricultural, and satisfy the need for 
 small advances, at long periods of repayment, keenly felt by a class of 
 agriculturists numerous in the Italian provinces, that of the small 
 proprietors who cultivate their own land, of the small farmers, and 
 also, in certain cases, of the agricultural laborers, who sometimes 
 cultivate a field on their own account."! 
 
 With these banks agricultural clubs are sometimes united. 
 
 Distributive co-operation is in Italy well known, but the 
 movement in this direction lacks organization. The mode of 
 administering such societies varies. Some are conducted on the 
 Rochdale plan. Others are workingmen's societies providing 
 various kinds of provisions for members exclusively. A still 
 different class are associations securing special rates for their 
 members upon purchases from private shopkeepers. About 
 
 * Authority : Dr. Ugo Rabbcno, Reggio Emilia, Italy. 
 
 t Rabbeno. Co-operation in Italy. Translated by E. V. Nealc. Co-operative Print- 
 ing Society, Manchester, England. 
 
DISTRIBUTIVE CO-OPERATION. 95 
 
 8,000 persons united in societies upon the latter basis in 1880. 
 There is still another class formed by railway employes, for the 
 purpose of obtaining provisions of good quality at low prices. 
 These are joint stock societies analogous to the civil service 
 supply societies of England. The first association of the sort 
 was founded at Turin, in 1873, with 53 members and a small 
 capital. In 1883 it had 2,307 members and more than 900 
 associates, its sales amounting to about 40,000 in that year. 
 Similar societies, all of which have made rapid progress, exist 
 at Milan, Florence, Naples, Sampler d' Arena, Genoa, Verona, 
 and elsewhere. In general, they sell at the lowest possible 
 prices, pay no interest on shares, confine their sales to their 
 own members, and carry the meagre proht upon sales to a 
 reserve fund. 
 
 The general consumers' societies were at first based on the 
 Rochdale plan, but owing to differences in national character- 
 istics this plan was not generally successful in Italy, and at 
 present the greater number do not attempt to pay to their cus- 
 tomers dividends on purchases as do the English societies, but 
 rather endeavor to sell *at lower than ordinary market prices, 
 carrying profits to a dividend on stock. The chief advantage 
 derived from such societies is considered to be their restraining 
 effect upon private retail shopkeepers, compelling the latter by 
 force of competition to sell their goods at fair prices. The 
 range of goods supplied is narrow, being principally confined 
 to bread, flour, grain, vegetables, macaroni, and vermicelli. 
 In some cases, meat and fish are added. 
 
 The number of consumers' societies in 1878 was ascertained 
 by government inquiry to be 58, and they are supposed to 
 have considerably increased in number since, but no definite 
 statistics exist. 
 
 Dr. Rabbeno, while taking a hopeful view of the progress of 
 distributive co-operation, after mentioning certain localities in 
 which from his personal knowledge such progress has been 
 marked, conservatively adds : 
 
 " With all this we must not delude ourselves, nor take refuge 
 in equivocal statements. Co-operation for consumption, as it is 
 practised in Italy, exercises a beneficial influence, especially by con- 
 tributing to keep down the prices of articles of first necessity. But 
 
96 A MANUAL OF 
 
 this influence is very limited. Besides, the greater part of the 
 Italian consumers' societies are not very flourishing. They lead a 
 rather straitened life. On the whole, co-operation for consumption 
 in Italy is not yet a success. We may hope that it will become 
 such."* 
 
 In commenting upon this, Mr. Neale, Secretary of the Eng- 
 lish Co-operative Union, remarks : 
 
 "The people's banks appear to me to form in Italy indirectly a 
 serious hindrance to the spread of co-operation for consumption. 
 By furnishing, through the credit given by them, a support to the 
 small traders, they make the triumph of co-operation, which is in 
 continual conflict with this class of traders, more difficult." 
 
 In the country districts of Lower Lombardy a system of co- 
 operative bakeries exists, founded by Rinaldo Anelli, a priest 
 of the^village of Bernate Ticino. The farmers and farm labor- 
 ers suffered from poor food owing to insufficient means for 
 individually drying and preserving the grain from mould, 
 especially during wet seasons, although it formed their chief 
 reliance for subsistence. To meet this peculiarly local need 
 Anelli said to the agriculturists : 
 
 " We will construct a bakehouse. You shall bring to this bake- 
 house your grain. Here we intend to get it well dried that it may 
 keep well. We will make a contract with the miller to grind it on 
 fair terms. We will make it into bread on the best system and in 
 the most economical manner ; and we will give you as many loaves 
 of bread as will correspond to the corn that you have brought." * 
 
 The instant success of the scheme, which has been elsewhere 
 copied, affords a marked instance of the advantages of mutual 
 effort under certain favorable conditions. 
 
 Productive co-operation is limited to a few societies, and, 
 although some success is to be noted, is still in the experi- 
 mental stage. The oldest and most important society is the 
 Artistic Glass Society of Altare, founded in 1856, and for a 
 time subjected to government opposition. Its original capital 
 was only 14,385 lire, about 463, but the members by carry- 
 
 * Co-operation in Italy. 
 
DISTKIBUTIVE CO-OPERATION. 97 
 
 ing to capital monthly instalments of their wages increased it 
 rapidly until, in 1883, it amounted to about 16,639. The 
 value of product in the latter year was about 21,196. 
 
 The Co-operative Labor Society at Ismola, manufacturing 
 earthenware and kitchen utensils, was founded in 1874 by 
 Guiseppe Bucci, who gave up to his workmen his own estab- 
 lishment, for which they paid him by instalments. It has been 
 reasonably successful. 
 
 In Bologna there are six productive societies engaged in 
 hemp dressing, shoemaking, building and woodworking, 
 leather cutting, glove making, and printing. They are all 
 small, but are said to be exerting a good influence. At Milan, 
 there is a co-operative society of marble workers, and one of 
 laundresses ; at Bandeno, one of weavers ; at Schio, one en- 
 gaged in railway and tramway construction, and at Turin, one 
 of working tailors, dressmakers and sempstresses. 
 
 The customary division of profits is between shareholders 
 and workers. At Altare and Ismola three per cent is first 
 paid to shareholders, and of the remaining profit 30 per cent 
 is carried to a reserve fund ; 25 per cent to a subsidy fund ; 30 
 per cent to shareholders, and 15 per cent to workers in propor- 
 tion to the number of days each has worked. Members must 
 become shareholders within four years or leave the society, a 
 requirement that eliminates the thriftless and undeserving. 
 
 Another form of productive co-operation in Italy should be 
 noticed, the co-operative associations of day laborers. These 
 arose among the agricultural workers of Rornagna, and they 
 had in view the emancipation of field laborers from the power 
 of contractors whose custom it was to control every extensive 
 operation in road making, earthwork, etc. ; farming out the 
 work to sub-contractors and reducing wages to the lowest point 
 so as to swell profits to themselves without regard to the rights 
 of the laborers dependent upon them. The work, it will be 
 seen, is very simple, requiring little capital and limited skill, 
 thus rendering it easy of performance upon the co-operative 
 plan. The meagre capital required was readily obtained by 
 savings from wages, the par value of shares being placed at a > 
 low figure. Almost the only outlay required was for pickaxes, 
 barrows, etc., and in many cases these were already possessed 
 by the workmen. The plan of operation was simple. Large 
 
98 A MANUAL OF 
 
 contracts are taken by the society at fixed rates, and sublet in 
 'sections to members, who work by the piece. By this plan 
 individual remuneration is in proportion to the work performed. 
 The workers become directly interested in the work and their 
 efficiency is proportionately increased. The middleman is 
 abolished, and the laborer is brought into immediate relations 
 with the proprietor who controls the undertaking. Under 
 these advantages men who previously earned from l\d. to 
 Is. 2^d. a day have increased their wages to 2s. 5d., and in 
 some cases to 3s. 2\d. or 4s. daily. The first association of 
 this sort, formed at Ravenna with 300 members, grew to a 
 membership of 3,000 within a year. Others upon the same 
 plan are working well. 
 
 CO-OPERATION IN SWEDEN.* 
 
 Co-operation in Sweden, as in Norway and Finland, is still 
 awaiting development, but owing principally to the efforts of 
 Lars Oscar Smith, a wealthy manufacturer of Stockholm, its 
 future is hopeful. Mr. Smith became interested in the subject 
 by the study of foreign experiments, and especially by wit- 
 nessing what had been accomplished in Great Britain. He first 
 formed in Stockholm the Sattskapet Arbetarnes Ring, or Work- 
 men's Ring Society, and inspired by this example, 80 similar 
 societies sprang up in the Swedish provinces. An important 
 object of these societies was emancipation from the "ring" 
 rule carried on by the combined proprietors of brandy shops 
 and public houses. 
 
 The original Workmen's Ring Society, after variations of 
 fortune, was incorporated during October, 1884, under the 
 name of the Aktiebolaget Arbetarnes Ring, or Workmen's 
 Ring Society, limited. In its corporate organization this soci- 
 ety consists of two sections, A and B ; the first a wholesale and 
 the last a retail department. To aid the society, in whose wel- 
 fare he was deeply interested, Mr. Smith supplied the capital 
 which the workmen lacked requisite to conduct the wholesale 
 department, viz., 100,000 Swedish crowns, representing 20,000 
 shares. The Section B, retail, is provided with capital upon 
 
 * Authority : Mr. A. W. Schulinan, of the Aktiebolaget Arbetarnes Ring, Stock- 
 holm. 
 
DISTRIBUTIVE CO-OPERATION. 99 
 
 the basis of five crown shares in groups of 500 shares each, 
 only one share to be held by each member. Mr. Smith's con- 
 nection is upon the following terms : six per cent is to be paid 
 him upon his investment; the balance of profits acquired in 
 both sections is to be carried to a reserve fund until the latter 
 becomes 100,000 crowns, whereupon the reserve is to be used 
 in taking up the shares held by Mr. Smith, who is to go out of 
 the concern. By this plan the shareholders of Section B will 
 ultimately acquire the wholesale business of Section A out of 
 the profits arising from their trade. 
 
 The sections are governed by committees. Whenever a 
 sufficient number of persons will subscribe to take up a group 
 or block of shares in Section B, and will pledge themselves to 
 support a store operated by the capital thus supplied, such a 
 store is to be opened, and becomes a department of the society. 
 The retail section therefore admits of indefinite extension, al- 
 though, as the organization is recent, few stores have yet been 
 started. In general features the organization is based upon 
 that of the English societies, that is, a wholesale department 
 intended ultimately to be owned and operated by a federation 
 composed of numerous retail associations. Unlike the English 
 stores which began with the retail departments and by natural 
 growth developed their present complete organization, the 
 Swedish societies, by the aid of the capital supplied by Mr. 
 Smith, have at once the advantages of a wholesale department, 
 with the possibility of acquiring its full ownership in the future. 
 
 The business of the Swedish Workmen's Ring is at present 
 confined to groceries and the products of butchering, together 
 with a co-operative steam kitchen for workingmen, originally 
 established by Mr. Smith but now operated as a department of 
 the society. 
 
 Mr. Smith is also the promoter of a co-operative banking 
 society, the Aktiebolaget Arbetareingens Bank, having a cap- 
 ital of more than 300,000 Swedish crowns, in shares of 25 
 crowns (1 8s.) each, one fifth held by Mr. Smith and the 
 balance held by about 8,500 workingmen. 
 
100 A MANUAL OF 
 
 CO-OPERATION IN SWITZERLAND.* 
 
 About 130 distributive societies are in operation in Switzer- 
 land, of which nine only existed prior to 1860. The larger 
 number are in the cantons of Zurich, Bern, Saint Gallen, Neu- 
 chatel, and Glarus, though some are found in every canton 
 except Schwytz, Uri, Unterwald, and Appenzell-Interieur. 
 
 The majority of the societies, according to their professions, 
 place chief stress upon securing supplies free from adulteration, 
 and the moral advantages of co-operation, rather than upon 
 low prices. These are mainly conducted by the German- 
 speaking population. On the other hand, the minority aim at 
 low prices chiefly, and of these three-fourths are French. 
 
 The capital invested in the societies is approximately as fol- 
 lows : 
 
 Share capital, 109 societies, .... 1,973,779 francs. 
 
 Keserve fund, 83 societies, . . . . . 722,528 francs. 
 
 Bond investments, 9 societies, .... 430,921 francs. 
 
 Total 3,127,228 francs. 
 
 Societies not represented in the above returns would, if in- 
 cluded, probably enlarge the total to 3,250,000 francs. The 
 total number of shareholding members has been estimated at 
 30,000, the total annual sales at 13,000,000 francs, and the 
 total annual profits at 1,500,000 francs. The moral results 
 attending co-operation in England also appear in Switzerland. 
 No Swiss co-operative union has yet been established. 
 
 CO-OPERATION IN THE NETHERLANDS, f 
 
 Co-operative societies in the Netherlands have a legal sanc- 
 tion in the statute of November 17, 1876, and, although a few 
 societies had been founded previously, the progress of the 
 movement rests upon this statute. 
 
 The General Dutch Workmen's Union (Het Algemeen Neder- 
 landsch Werkliedenverbond) and the Society for Self Help 
 (Vereeniging Eigen Hulp) are corporations founded for the 
 purpose of promoting co-operative societies and extending co- 
 
 * Authority : The Journal de Geneve, March 6, 1884. 
 f Authority: J. Th. Braun, of the Hague. 
 
DISTRIBUTIVE CO-OPERATION. 101 
 
 operative principles. The first has its headquarters at Amster- 
 dam, and the latter at the Hague. Both maintain newspaper 
 organs. 
 
 The following co-operative societies have been established 
 since 1876 : 
 
 Co-operative savings and advancing banks, .... 8 
 
 Consumers 1 societies, 23 
 
 Co-operative bakeries, 2 
 
 Co-operative butchering establishment, 1 
 
 Building societies, 13 
 
 Agricultural societies, 3 
 
 Society for managing funerals (undertakers), .... 1 
 
 Total 51 
 
 Divisions of the Workmen's Union exist in several towns and 
 have founded small associations administered under domestic 
 rules and not incorporated. The co-operative savings and 
 advancing banks are located at Amsterdam, The Hague, Leeu- 
 warden, Middleburg, Goes, Enschede, and Veendam. 
 
 Most of the consumers' societies are upon the limited liability 
 plan. The cash system is generally adhered to. Some sell 
 only to members at as low rates as possible.* Others sell to 
 every one and divide profits among members yearly in propor- 
 tion to consumption, allowing undrawn dividends to remain 
 on interest, f 
 
 The two co-operative bakeries enumerated are in successful 
 operation at the Hague and at Koog aan de Zaan (North Hol- 
 land) respectively. At the Hague, members upon joining pay 
 Is. Sd. In April, 1885, the society had 1,050 members. 
 Dividends are paid in bread during the year as demanded, 
 each member's dividend being in proportion to his consumption 
 during the previous year. At Koog, the yearly surplus is 
 divided among widows of deceased members, upon the basis of 
 the consumption of the recipient during the previous year. 
 
 The agricultural societies conduct the business of transport- 
 ing and selling farm produce for the common account of mem- 
 bers, in foreign and native markets ; besides which one society 
 has a productive character. 
 
 * Civil service plan. 
 
 f Somewhat similar to the Rochdale plan. 
 
102 A MANUAL OF 
 
 The co-operative associations that belong to the Society for 
 Self Help have a common agency for the purchase of supplies 
 in the Gezamelyke InJcoop van Eigen Hulp, at Eotterdam, 
 which, though loosely organized, is really the germ of a whole- 
 sale society. 
 
 A division of the Society for Self Help devotes itself to the 
 dissemination of supplies among army and navy officers, and is 
 similar to the army and navy supply societies in England, 
 although at present rather limited in its operations. 
 
 CO-OPERATION IN AUSTRALIA.* 
 
 The leading co-operative society in Australia is the Equitable 
 Co-operative Society, of Melbourne, administered on the Roch- 
 dale plan. Business was begun in 1882, and certain errors of 
 management due to inexperience having been remedied, the 
 society is now firmly established and progressing rapidly. 
 Early in the present year, 1885, the number of members was 
 1,990; paid up capital, 46,100; and deposits, 7,000, draw- 
 ing interest at five per cent. 
 
 The departments include groceries, hardware, wines and 
 spirits, crockery, boots and shoes, drugs and chemicals, sta- 
 tionery, drapery, millinery, carpets and upholstery, tailoring 
 and dressmaking. The number of employes in the distributive 
 service is about 90, one-third of whom are boys and girls. 
 About 56 productive employes are also engaged. A monthly 
 journal, called the Equitable Co-operator, is published by the 
 society in its interests and circulated free of charge. Goods 
 are delivered free to purchasers in Melbourne and suburbs. 
 An experienced buyer is employed in London, and about one- 
 half the stock in trade is imported. 
 
 Some other distributive societies exist in Australia, called 
 co-operative, but mostly upon the joint stock plan. Under the 
 influence of the Equitable Society co-operation in that country 
 will no doubt be further developed. 
 
 * Authority : Mr. William Nuttall, Secretary of the Equitable Co-operative Society, 
 Melbourne. 
 
DISTRIBUTIVE CO-OPERATION. 103 
 
 THE ARLINGTON CO-OPERATIVE ASSOCIATION, 
 AT LAWRENCE, MASS. 
 
 Distributive co-operation in the United States has been tried 
 upon various plans, notably under the patronage of the Sov- 
 ereigns of Industry, Patrons of Husbandry, Knights of Labor, 
 and similar organizations. Being in most instances incidental 
 only to the main purpose of such orders, the fate of these dis- 
 tributive stores has usually been determined by the success or 
 failure of the primary objects of the organization. 
 
 In Texas a co-operative wholesale society and about 150 
 retail stores are in existence in connection with the order of 
 Patrons of Husbandry.* Isolated experiments, not successful, 
 have been made in New York City and in Brooklyn. The 
 Arlington Co-operative Association, at Lawrence, Mass., how- 
 ever, furnishes an example of successful American distributive 
 co-operation on substantially the Rochdale plan. 
 
 The association is limited to employes of the Arlington mills. 
 In this feature of limitation the plan of the English stores is 
 not adhered to, as membership in the latter is not restricted. 
 Officers are elected annually, consisting of a secretary, treas- 
 urer, and ten directors, one of whom is chosen president by the 
 board, and regular quarterly meetings are held. Special meet- 
 ings may be called by the president with the consent of a 
 majority of the directors, and must be called upon the written 
 request of ten members. Auditors are chosen annually by the 
 stockholders by ballot. The manager of the store is selected 
 by the directors, and is at present a thoroughly competent per- 
 son trained in the principles of distributive co-operation in 
 England. 
 
 The administration of the society is similar to that of the 
 English societies which we have described. Three members of 
 the board of directors constitute an advisory committee whose 
 duty it is to consult with the manager as to purchases of stock, 
 and to approve all bills before the same are paid by the treas- 
 urer. The latter officer is placed under bonds. The manager 
 is held responsible for the correct accounting of stock in trade, 
 makes a daily report of sales and accounts to the treasurer, 
 
 * J. B. Long, Rusk, Texas. 
 
104 A MANUAL OF 
 
 and takes account of stock quarterly. He gives such bonds as 
 the directors require for the faithful performance of his duties. 
 
 Members may hold from one to two hundred shares. The 
 par value of shares is five dollars. Members upon joining pay 
 an initiation fee of 50 cents, all sums so received being carried 
 to the sinking fund, to which fund is also carried not less than 
 ten per cent of profits annually. Under the rules the sinking 
 fund is to be allowed to accumulate until it shall amount to 30 
 per cent in excess of the capital stock. Amounts carried to 
 the sinking fund, and other sums in excess of the business 
 needs of the association, are placed on deposit in the savings 
 bank until sufficient in the aggregate to purchase five shares of 
 Arlington mills stock, when the deposit, at the discretion of 
 the directors, may be withdrawn and invested in such stock 
 under such provisions as the treasurer of the corporation and 
 the State law may require. " On all certificates of stock thus 
 issued there shall be endorsed the provision that interest shall 
 be paid at the rate of 1 per cent less than the average dividend 
 declared by the Arlington corporation for the current year."* 
 This provision as to investments, taken together with the fact 
 that members must be employes of the Arlington corporation, 
 introduces indirectly a productive element. 
 
 The cash system is enforced. No intoxicating liquors are 
 sold. Sales are made at the average retail market price. Each 
 stockholder has one vote in business meetings. Shares are 
 withdrawable after thirty days' notice, or if, for any reason, 
 payment is delayed after thirty days upon shares which a mem- 
 ber has duly signified his intention to withdraw, such shares 
 may be transferred to any other member who has not already 
 the maximum number of shares to which he is entitled under the 
 rules ; but no transfer can be made to non-members, unless by 
 the consent of the directors, in writing, signed by the president 
 and secretary, and entered upon the records of the association. 
 
 After providing for the sinking fund, interest on capital 
 stock at the rate of five per cent annually, and the payment of 
 taxes, profits are divided quarterly in proportion to the pur- 
 chases of the recipients, non-members sharing at half the rate 
 allowed to members. After one dollar has been paid in on 
 
 * Bv-laws of the Association. 
 
DISTRIBUTIVE CO-OPERATION. 
 
 105 
 
 stock subscribed for, the subscriber is entitled to a full divi- 
 dend. Dividends and interest declared on stock may remain 
 on deposit. Interest on money paid in for shares commences 
 on the first of each month. No interest is paid on shares 
 withdrawn before the end of the quarter. When the undrawn 
 dividends and interest placed to the credit of any person 
 amount to the par value of one share, interest is declared on 
 the accumulation in the same manner as provided for money 
 paid in for shares, provided that such accumulation, together 
 with the original shares invested, shall not exceed the par value 
 of 200 shares. 
 
 The association was incorporated July 8, 1884. Business 
 was begun September 15, 1884, and the first fiscal year was 
 closed October 1, 1885. The average capital for the year, 
 $3,320, was turned over more than eleven times and thus 
 realized a return of nearly 74 per cent in less than 13 months. 
 The following statistical statement from the directors' report 
 exhibits the uniform progress of the association : 
 
 Progress of the Arlington Co-operative Association. 
 
 CLASSIFICATION. 
 
 Total 
 
 Sales. 
 
 Gross 
 Profits. 
 
 Salaries, 
 Expenses, 
 and 
 Interest. 
 
 Net 
 Profits. 
 
 First quarter, 15 weeks, 
 
 $10,828 89 
 
 $1,743 62 
 
 $1,024 93 
 
 $718 69 
 
 Second quarter, 13 weeks 
 Third quarter 13 weeks 
 
 8,783 92 
 8 615 01 
 
 1,479 52 
 1 087 15 
 
 954 98 
 830 46 
 
 524 54 
 256 69 
 
 Fourth quarter, 13 weeks, .... 
 
 9,967 12 
 
 1,809 75 
 
 1,036 61 
 
 773 14 
 
 Totals, 
 
 $38,194 94 
 
 $6,120 04 
 
 $3,846 98 
 
 $2,273 06 
 
 Progress of the Arlington Co-operative Association Concluded. 
 
 CLASSIFICATION. 
 
 Profits 
 divided. 
 
 Carried to 
 
 Sinking 
 Fund. 
 
 Interest on 
 Capital. 
 
 Total 
 Return on 
 Capital. 
 
 First quarter, 15 weeks, ..... 
 
 $544 54 
 
 $174 15 
 
 $51 13 
 
 $769 82 
 
 Second quarter, 13 weeks, .... 
 
 449 44 
 
 348 58 
 
 75 10 
 91 89* 
 
 40 48 
 40 89 
 
 565 02 
 297 58 
 
 
 607 42 
 
 165 72 
 
 40 74 
 
 813 88 
 
 
 
 
 
 
 Totals 
 
 $1,949 98 
 
 $323 08 
 
 $173 24 
 
 $2,446 30 
 
 * This amount deducted. 
 
106 A MANUAL OF DISTRIBUTIVE CO-OPERATION. 
 
 The totals of the foregoing table afford the basis for the fol- 
 lowing statement : The gross profit amounts to 16.02 per cent 
 on sales ; salaries and expenses 10.07 per cent on sales ; net 
 profits 5.95 per cent on sales ; the profits divided represent an 
 average on checks returned of 6.24 per cent for full dividend 
 and 3.12 per cent for half dividend; the sinking fund repre- 
 sents more than 14 per cent of net profits besides initiation 
 fees ; the interest is 5 per cent on capital, and the total return 
 on capital is 73.68 per cent. 
 
 At the close of the first year's business the share capital rep- 
 resented 664 shares ; merchandise in stock, including dry 
 goods and fuel, amounted to $2,554.27 ; fixtures, $767.28 ; 
 cash in bank, $1,249.26; and the association might well con- 
 gratulate itself on the results accomplished, and the prosperous 
 future apparently before it. 
 
INDEX TO SUBJECTS. 
 
 PAGE 
 
 INTRODUCTION, - 5, 6 
 
 Legislative action respecting a pamphlet on co-operation 5 
 
 Sources of information, 5, 6 
 
 WHAT is CO-OPERATION ? 6-8 
 
 Co-operation as first advocated, 6 
 
 Co-operation at present, 7 
 
 Co-operation as defined by Holyoake, 7 
 
 Co-operative, as distinguished from joint stock associations, .... 8 
 
 Distributive co-operation defined, 8 
 
 HISTORY OP THE MOVEMENT, 8-22 
 
 The early social reformers, 8 
 
 Robert Owen, and his influence, 8, 9 
 
 The first co-operative newspaper, 9 
 
 The London Co-operative Society, . 9 
 
 The first co-operative Congress, 9 
 
 Co-operative societies in 1830, 10 
 
 Character of early co-operative experiments . . 10 
 
 Table showing existing societies established before 1844, .... 11 
 
 Failure of early stores, and the cause, 11, 12 
 
 The plan of M. Louis Blanc, 12, 13 
 
 Thomas Hughes' opinion of Blanc's work 13 
 
 Organization of the Rochdale Pioneers, 13, 14 
 
 Statistics of the Rochdale Pioneers, 15, 16 
 
 Cardinal principles observed at Rochdale, 16 
 
 Progress of co-operation after 1844, 17 
 
 Frederic Maurice, and his work, 18 
 
 Legislation promoting co-operation, 18, 19 
 
 Holyoake's history published, and its influence, 19 
 
 Co-operation in 1862, 19 
 
 The establishment of the English wholesale society, 19 
 
 The establishment of the Scottish wholesale society, 20 
 
 The establishment of the Central Co-operative Board, 20 
 
 The establishment of a newspaper organ, 20 
 
 Co-operation on the civil service plan, 20, 21 
 
 Summary of co-operative progress since 1824, 21 
 
 Early and later efforts contrasted, 22 
 
 THE FOUNDATION IN LAW, 22-25 
 
 Statutes now in force, 22 
 
 Provisions respecting organization, 22 
 
 Corporate powers of societies, ... - 23 
 
 Rules, how amended, 23 
 
 [107] 
 
108 INDEX TO SUBJECTS. 
 
 THE FOUNDATION IN LAW Continued. PAGE 
 
 Power of societies to contract, 23 
 
 Provisions as to trading, 23 
 
 Power to make loans, 23 
 
 Tax exemption 23 
 
 Settlement of disputes, 23 
 
 Consolidation, and dissolution, 23, 24 
 
 Rights of minors in societies, 24 
 
 Members and their liability, 24 
 
 Shares, number permitted to be held, 24 
 
 Provisions respecting members dying intestate, 24 
 
 Official investigation, how secured, 24 
 
 Seals, offices, and returns, 24, 25 
 
 Penalties, 25 
 
 THE RETAIL STORE, 25-39 
 
 Introductory remarks, 25 
 
 FIRST STEPS, 25 
 
 CAPITAL, 25, 26 
 
 SHARES, 26 
 
 NATURE OF SHARE CAPITAL, 26-28 
 
 PAYMENT OP SUBSCRIBED CAPITAL 28 
 
 REGISTRATION, 28 
 
 THE EXECUTIVE COMMITTEE, 28-30 
 
 Duties of the committee, 28 
 
 Number of members, ' 29 
 
 Tenure of office, 29 
 
 President, how elected, 29 
 
 Secretary and Treasurer, 29 
 
 Fees of members, 29, 30 
 
 Bonds, 30 
 
 BUSINESS PREMISES, 30 
 
 THE STOREKEEPER, 30 
 
 STORE FITTINGS, * . . 30, 31 
 
 STOCK IN TRADE, 31, 32 
 
 Importance of careful purchases, 31 
 
 Range of articles to be kept in stock, 31, 32 
 
 Amount of stock, 32 
 
 Prices, 32 
 
 THE CHECK SYSTEM, . . . 32, 33 
 
 Checks to prove purchases, 33 
 
 Fraud in the use of checks, 33 
 
 Checks upon the manager, 33 
 
 DUTIES OF ME3IBERS, 33-35 
 
 STOCK-TAKING AND AUDITING, 35, 36 
 
 Fair stock-taking important, 35 
 
 Auditing, how conducted, 35, 36 
 
 ALLOTMENT OF PROFITS, 36, 37 
 
 Provisions of the model rules, 36 
 
 Depreciation of property, .......... 36 
 
 Reserve fund, 37 
 
 Educational, social, and benevolent fund, 37 
 
 Congress fund, 37 
 
 Bonus to employed, 37 
 
 THE BALANCE SHEET, 38 
 
 SUMMARY OF ESSENTIAL POINTS 38, 39 
 
INDEX TO SUBJECTS. 109 
 
 PAGE 
 
 THE WHOLESALE STORES, 39-50 
 
 Benefits of the wholesale stores 39, 40 
 
 Failure of early attempts, 40 
 
 Organization of the English society, 40 
 
 Value of shares, 41 
 
 Goods, how sold, 41 
 
 Profits, how divided, 41 
 
 Establishment of central and branch, departments, 41 
 
 The shipping business, 41 
 
 The banking department, 42 
 
 Administration of the society, 42, 43 
 
 Provisions governing business with retail societies, 43 
 
 The Scottish wholesale society, 43, 44 
 
 Statistical statement of relations existing between the retail .societies- -and 
 
 the English wholesale, 44 
 
 The amount of patronage furnished by the retails considered, . . .45, 46 
 
 Surplus capital and its effects, 46, 47 
 
 Productive enterprises of the English wholesale, 47, 48 
 
 The Crumpsall works, 47 
 
 The Leicester and Heckmondwike Shoe Works, 47, 48 
 
 The Durham works, 48 
 
 Tabular statement of profits of production, 48 
 
 Profits of the shipping enterprises, 49 
 
 Surplus capital further considered, 49, 50 
 
 STATISTICAL ABSTRACT, 50-63 
 
 Sources of information, 50, 51 
 
 Co-operative societies in the United Kingdom 1862-1883 52, 53 
 
 Co-operative societies in Great Britain 1862-1883, 52, 53 
 
 Co-operative societies in England and Wales 1862-1883, . . . . 54, 55 
 
 Co-operative societies in Scotland 1872-1883, 54,55 
 
 Co-operative societies in Ireland 1872-1883, 54, 55 
 
 Results shown by the tables, 56 
 
 Co-operation in England and Wales, 1872 and 1883 compared, ... 56 
 
 Co-operation in Scotland, 1872 and 1883 compared, 56 
 
 Co-operation in Ireland, 1872 and 1883 compared, 56 
 
 Results of the comparisons, 57 
 
 Total population connected with tlie movement, 57 
 
 Ratio of sales, expenses, and profits to members, 57 
 
 Statistics of societies with annual sales amounting to 200,000 or more, 
 
 1866-1883, 58,59 
 
 Statistics of the English wholesale society from March, 1864, to June, 
 
 1885, 60,61 
 
 Miscellaneous statistics of the English wholesale, 62 
 
 Statistics of the Scottish wholesale 1869-1883, 63 
 
 THE CO-OPERATIVE UNION, 63-68 
 
 Objects of the Union, 63, 64 
 
 Provisions respecting membership, 64 
 
 Organization of the Union, 64-66 
 
 Proceedings of the Congresses, 66 
 
 Subjects discussed at the Congresses, 66 
 
 Statistics of the Union 1869-1885, 67 
 
 The work of the Central Board, 67, 68 
 
 The Southern Guild, 68 
 
110 INDEX TO SUBJECTS. 
 
 PAGE 
 
 REVIEW or DISTRIBUTIVE CO-OPERATION IN GREAT BRITAIN, . . . 68-74 
 
 The advantages of organization, 68 
 
 Reasons for success, 68 
 
 How far the movement is co-operative, 69 
 
 Criticism to which the movement is open, 69, 70 
 
 How producers and wage workers are affected, 70, 71 
 
 Benefits of distributive co-operation, 72-74 
 
 APPENDIX, 75-106 
 
 Introductory remarks, 75 
 
 CO-OPERATIVE PRODUCTION IN GREAT BRITAIN, 75-81 
 
 Views of leaders of the movement, 75, 76 
 
 Two schools of productive co-operation, 76 
 
 Individualists and federalists, 76, 77 
 
 Difficulties and advantages of each system, 77 
 
 Theories of Holyoake and others, 77-79 
 
 What has actually been done, 79-81 
 
 Table showing co-operative productive societies, .... 80 
 
 CO-OPERATION IN FRANCE 81-86 
 
 Progress of the movement, 81 
 
 Statistics of co-operative societies of Paris, 82-85 
 
 Details of administration, 84-86 
 
 CO-OPERATION IN GERMANY, 86-90 
 
 Modes of development 85 
 
 Classification of German societies, 86 
 
 The raw material supply associations, 86, 87 
 
 The industrial magazines, 87 
 
 The industrial productive societies, 87, 88 
 
 The agricultural societies, 88 
 
 German co-operative unions, 88, 89 
 
 Consumers' societies, 89 
 
 Classification of members in people's banks and consumers' societies, . 89, 90 
 
 CO-OPERATION IN AUSTRIA, 90-92 
 
 Statute provisions, 90, 91 
 
 Statistics of Austrian societies, 91 
 
 Distributive societies, 91, 92 
 
 Productive societies, 92 
 
 CO-OPERATION IN DENMARK, 92, 93 
 
 CO-OPERATION IN SPAIN, 
 
 CO-OPERATION IN HUNGARY, 93, 94 
 
 CO-OPERATION IN ITALY, 94-98 
 
 Co-operative banks in Italy 
 
 Distributive societies, 94-96 
 
 Co-operative bakeries, 
 
 Productive co-operation, 96-9 
 
 Co-operative associations of day laborers, 97, 89 
 
INDEX TO SUBJECTS. Ill 
 
 APPENDIX Continued. PAGE 
 
 CO-OPERATION IN SWEDEN, . 98, 99 
 
 The "Workmen's Ring Society, 98, 99 
 
 Co-operative banking, 99 
 
 CO-OPERATION IN SWITZERLAND, 100 
 
 CO-OPERATION IN THE NETHERLANDS, 100-102 
 
 Statistics of societies, 101 
 
 Consumers' societies, 101 
 
 Co-operative bakeries, 101 
 
 The agricultural societies, 101 
 
 Wholesale agency of the Society for Self Help, 102 
 
 CO-OPERATION IN AUSTRALIA, 102 
 
 THE ARLINGTON CO-OPERATIVE ASSOCIATION, AT LAWRENCE, MASS., . 103-106 
 
 Distributive co-operation in the United States, 103 
 
 Plan of the Arlington Association, 103 
 
 Its officers, how chosen, 103 
 
 Mode of administration of the society, 103, 104 
 
 Provisions as to shares, 104 
 
 The sinking fund, 104 
 
 Profits, how divided, 104, 105 
 
 Statistics of the Association, . 105, 106 
 
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