The Stourbridge Observer, Cradley Heath, Halesowen & District Chronicle.
Stourbridge, West Midlands, England, 1874-04-11 00:00:00

CO-OPERATIVE CONGRESS.

The annual COllgTeiSS of delegates from Co-operative
Societies in the United Kingdom was opened on Mon-
la v morning in the Mechanics'-hall, Halifax. About
'-'OO delegates were present. In the temporary absence
of Mr. T. Brassey, M.P. who had been announced to
oreaide, the proceedings began with a debate, opened
In% Rutherford, of Newcastle, on Co-operative
lital Mining, into which business, it was urged, co-
operators should embark. At the conclusion of this
debate, Mr. Brassey, :11.P., gave his inaugural address,
which wan on Co-opers.tive Production, and was to the
following effect :
" " •' • • -

'lt is scarcely necessary to insist on the vast development
of our co-operative organization. The umnber of co-opera-
tive societies in England mid Wales is 710 the number of
member. 300,587, of whom 00,000 were admitted, and
32,000 withdrew in 167.2 The share capital amounted at the
end of 1572 to f12,704,Vv0, arid the sums of £10,170,000 were
Paid, and v 111,379,000 reccived during the year in Lash for
goods. The disposable net profit realized from all sources
amounted to 0,07,7 la. The enormous sums I have enume-
flaw give proof that the principle of co-operation, in its ap-
plication to the distribution of rommoties among con-
sowers, is convenient and practicable, and effects a
considerable baring of expense. •
. .

I peas from co-operative distribution to co-operative pro-
duction. and I may here observe that to me this other branch
ithe movenieut Is far the most intezesting. The equitable
distribution of profits hetween labour, capital, and the In-
use faculty which ereates and the commercial and or-
,tiring faculty which tionducts a business is the moist im.
portitut, as it ia uutioubtedly one of the most difficult id the
owls! problems of our age socialism is the proteet of labour
agebut the unequal distribution of the profits of production
bit the system of absolute equality in against the law of
nature. Whatever poets, sentinientalists, and agitators slay
..ay, there cannot be equality in a seciety composed of in.
dickluels unequally endowed in knowledge, natural aptitude,
„,0 in physical and mental power But while there
cannot he equality, there must lie justice. I earnestly
mush success to the experiment of adapting the co-operative
principle to productive industry. In a co-operative mill,
er workshop. or farm, the producers unite the double func-
tion of capital and labour. The handicraftsman sits in
Judgment ou the claims of the capital provided by his own
thrift and past labours, slut while he is not likely to ap-
propriate all inadequate rate of interest to a fund obtained
from such a scarce, he cannot, at the SaDie time, app.,
ton too much to capital without doing an injustice to
himself in another capacity. If it be practically developed
on an extensive scale, co-operative production ought to
sive many disputes concerning the rates of wages. In the
tooperative establishments there cannot, in the nature of
tomes, he any contention between a body of workmen and
an individual whom they regard with unfriendly eyes as a
selfish monopolist. Nee will the benefits be confined to co-
operative establishments alone. They will ameliorate the
relations between employers and employed in cases where,
as it commonly happens, the andlicting interests of capital
and labour are represented by different individuals. gut the
difference between those interests will be more easily adjusted
when the capitalist hi enabled to refer the labourer to the
rates of wages pre, ailing in co-operative establiehments,
where they have been determitied, not by a single individual,
suspected of being without sympathy for the labourer, but
by thew very men who, in the rapacity lir workmen, become
the earners of wages, fixed and paid by themselves. The
desideratum in all labour disputes is a standard, set up bran
impartial tribunal, by which it may readily be decided what
constitutes a fair rate of wages When co-operative pro-
duction has been introduced into all branches of industry
successfully and on s sufficiently extensive scale, we shall
then have the universal gauge or measure of the workmaies
rightful claims,
•• It would not be well that capital should be favoured at
the expense of labour, nor yet would it be for the advantage
of the working class to thininish the motives to accumulate
that fund, which in truth is the only source whereby enter-
prise can be encouraged and employment created. The
ordinary Interest upon capital in England is lower than in
any other civilized country. The temptations to English
holders of capital to Invest elsewhere are already sufficiently
great. All the countries of Europe, atel, to a yet greater
extent, the United states, are constantly bidding for the
use of our capital_ Capital employed ill agriculture and
railway enterprise in the United States yields a return at
least one-third higher than the like investments in Eng.
land and I should accordingly view with considerable
anxiety any serious depreciation of our cunient rate of in-
terest. Ido not, however, deny that it might be a benefit
to society that capital should he distributed among a greater
number of individuals. and it is because co-operative pro-
duct''a would tend to promote that result that I sincerely
desire to see it extended. At the same time, while highly
commending the systeni in principle, it cannot be denied
that in its practical application there are crave difficulties
A ready means of applyum the principle of limited liability
to all descriptions of Yuen'ssa was created by the Joint Stock
Companies Act of 1802. That enactnient gave greater facili-
ties for the sale of their property- to Joint Stock Companies,
hi men at the head of tarp concerns, who were tired of bard
work, and anxious to hand down to their families an
inheritance, secured from the risks and fluctuations
of trade. And while there are many aeeking to exchange
the w-ear and tear of Imeiness for the comparatively eally
life of the country gentleman, there was a large body of
Inexperienced and eatanitie investors who had deluded
themselves with the ballet that it was possihle to conduct
the most intricate operations of industry successfully
without experience and without that constant 'lemma'
devotion to administrative details winch the individual
manufiicturen whom: property they hail purchased lout
found it essential to bestow. It is well known that in
numerous instances the purchasers have sustained a serious
lies. In some eases the prices paid have been excessive,
and the failure has resulted from the exaggeration of the
,ipital account. But the explanation is more commonly
1,, lie hand in the imperfect control exercised by a Beard
of 'Aragon, assisted by a salaried manager, as compared
ith the ailnilnistration of the individual employers.
Even in the choice of an agent, representative, or manager,
a private individual has advantages over a board. Take
the case of a railway contractor. The contracts for a hung
tine of railway are sub-divided, for the purposes of the
supervision of the work, into sections rarely exceeding
eight to ten miles in length. If the works are unusually
heavy, the sections are shorter in proportion. A sub-agent
is placed In charge of each section such all experienced agent
has the general direction over the whole contract. The
principal contractor for the undertaking, by paying frequent
Visits of inspection, has opportunities of I iecoming aainainted
with every sub-agent in Ins employ. Ile observee the pro-
gress niade on his section he cull test his capability of deal-
scsi itti every kind of practical engineering difficulty by
moving the sub-agent from railway to railway, and putting
lons iti eharge orwork in districts totally dissimilar in the r
physical character and resources. Gradually those employed
In a subordinate capacity have all opportunity of showing
their powers, and yet, while there is ample scope for
individual merit, the supervision of the agent having the
;emend charge will prevent the mistakes of a subordinate
lion poducing very serious conseipicuccs. Thu, with the
lapse of tinie and w itheut iOi grave risk of los-s the etude:elor
may fin-ma an opi Mon as to whei are hie most trustworthy sub-
ateets, and can select principal agenta from arming their
Moldier with confidence, because their powers will have been
il,,nitighly tested in a subordinate ism:lofty. Here it will be
onvious that long experience and continuity of management
ere essential. A board will make appointments upon the
loth ut testimonials. The private individual will trust to,
his personal observation.

'• Again, administrative success depends upon the know-
ledge and management of details The art of organizing
Jorge bodies of workmen will oidy be obtained by previous
szperience on a smaller scale. In the organivition of co-
operative production, it is essential to secure the services of
individuals competent to take the general management. I
sia contidint that the manual operations will he nkillfelly
end probably more diligently performed in a co-operative
witablblineut. The personal Interests of the workmen
will he so directly advanced by their application
and perseverance that they will naturally work hard.
But their best efforts will fail to ensure a satis-
factory result unless the general organization is perfect
tdso. This organizing faculty is a rare gift, and it
must he combined w ith long experience and excellent
liniment. or the commercial result cannot be satisfactory.
We have the most conclusive evidence that the administra-
tive powers of which I speak are as rare as they are essen-
tial in the high salaries which men possessing such qualifi-
cations often obtain. When shall we find co-operative
shareholders ready to give £5,000 a year for a competent
manager? And yet the sum I have named is sometimes
readily paid by private employers to an able lientenant
I would therefore earnestly advise those interewed in a co-
"

.4,-restive production to discourage attempts to commence
ii a large scale a business difficult to manage. The policy
stigeostedit more practicable as well as more prudent. A
moderate capital is easily obtained. Large funds are not
rapidly procured. Where only a few hands are engaged,
the governmeitt may be conducted im a puely democratic
basis. Where the energies of a multitude are to be combined
there mast be an enlightened despotism. It was rightly
panted out by Mr. Morrison, in the debates at the last con-
ference of Co-operative Societies, that without the concen-
tration of management among a limited number of persons it
would be impossible to preserve the unity of tradition and
administration which are essential to establish the repute.
tin of a factory or workshop, and to secure for the articles
therein produced the high prices which consumers are always
ready to pay for goods of undoubted quality.
After referring to the Onseburn Engine Works, the most
important experiment in co-operative production hitherto
attempted in this country, Mr. Braseey continued From
the valuable reports of her Majesty's Secretaries to Le-
gation I can quoto, for the encouragement of English co-
operators, ninny successful applications of the co-operalive
principle. It is stated by Mr. Ford that the Executive Cent-
mince of the Tailors' Croon in New York, on notifying the
reseation of a strike, In which the trade hall been engaged in
lean, declared that their policy would thenceforward be to
abandon the system a shaken, and to tight with a stronger
weapon—that of co-operation. The co-operative principle
has been adopted by those strange religions sects. the Mor-
mens, Shaken, Economists, mid Perfectionists ; and, however
we may differ from their creed, it must be admitted that they
have attained to great success in the organiration of labour.
The Sheratons at salt Lake City have transformed 'a wilder-
ness into a garden.' and t can speak front personal know-
kits ledge when I my that the Shakers are excellent farmers.
After referring to the en-operative foundries cdeblished in
N,w York and Massachusetts, and ether example. Mr.
peassey proceeded While the efforts to establish co-
ol...dice production In this country have not thus far been
Ito toted with a large measure of success, the importance
the principle at stake is so great that I should deprecate
moot unimestly the abandonment of further attempts in the
none direction The wiser course will be to avoid, as it has
been already . suggested, eommencing undertakings on a
large scale. When the imeinese is of a kind that Cllllllok
carried out advantageously en a moderate footing, the.
. . .

co.operative principle hiltaliol )plied to the execution of
Bel, ,ontracts for portions of the work, to the supply of a part
of a large order, or to 111•1 ulerlltiOß of a single process in R
complicated irnanufacture. Mr. Ria.sey then illustrated his
sulaect with a reference to the business with which his name
had been associated— the construction of railways, and the
•- • " - "

in which Contracts were sub-let. Ile said Tile
,y.ten.,,f sub-contract was carried so far that I have been
informed bi th.. iatne experienced person front whom I have
derived the faft,i already quoted, that the very scaffolding
valved for the purpose of putting together the ironworks of
the bridges of the Severn-valley Railway was mostly erected
fly sulocontract?rs. A carpenter would take a sub-contract
far the erection of such scaffolding, fixing his price by the
nide foot. . _ . . .

•• On theoretical grounds, I would advocate strongly the
adoption of the co-operative principle pure and simple lout
I would also commend t,l those interested in the cordial al-
Moire sit lalumeand capital the methods of payment, so sue-
sessfully applied by Messrs. Porig,,-s. and Fox. Mad, and to
e•.rthy of attentive examination, and as affording if only
it it Ain a much easier, solution Id the labour problem
nail that tin Tow! lip the advocates of It purely productive
,ylhlll. in the establishments to which I refer, and which
art- s well known to all who take an intaest ,O,c,perative
yr•olaction, the employers have ell.leaVelllrell lit give ti tile
w..lkmen a direst personal advantage from the success of
ti I.I,AiIIeSA. while retainiumin their own hustle the ithwohate

. ......-
. „. of (lir, etitig the general poliey ;And iliatingenielit
all the evil, ariNing fro,, divided resimil,i•
they to rr,,trt themselit, from the
" I • to if e,.rp.r4i • m;,iirtgenlent and yet to give to
fall share
...1.,: 1..y0ht% Prol!oal.'"
. . . .

6.,•,r -Will and diiger Wit, leenragioges-
betasellCW.,• I heal, enuay eMployers ow: he glad
t • nr, mune v.wwww Any plan by which
„.y to realise that they r. .w in the
should not he lightly
t aside. it is good policy to 'forego a i...7t1°11'?1 thY Proll
ta
of a prosperous year lii ,riior to avert the ca.:7altY
strike, with all its attendant evils of loss of protit and bitter-
ti ii arid strife betwern masters and Melt Capital PIP!
I:thenr are easentitlly necessary and Independent elements
"I production, and the man of I/este/we, not loss than the
philanthropist, must desire to see the representatives of
those two tereats closely allied.
.

...... _ -
" I remind this conference of the, find other efforts to
combine the principle of co-operation, with the undoubted
advantages of undivided responsibility ID the administration
or a large andel takhig, because lam ratidled that he eor
P.rAte system la not always applicalde For complicatel
undertakings co-operative orymnization will often prove in-
effectual. A council of war never fights, and no difficult task
In the field of peaceful labour can be brought to completion
without a trusted leader.
. .

Mr Brassey then passed on to consider other developments
Of the co-operative principle, second only in their import-
ance to co-operative production, and perhaps more practica-
ble in execution. He said "The co-operative societies
should exert themselves to bring into use among the work-
ing classes the very beat grate and cooking range that can be

contrived, and I believe that the merits of that Invented
by Captain Gaiton are well worthy of their attention. The
vosiperative associations should organize the means of Mi-
-1 parting a complete knowledge of culinary matters to the
! mass of the population. In all great towns workmen's res-
taurants might be established on a large scale. 1110
more extensive the arrangements the more easy It would be
to introduce the utmost possible economy.
Having touched on the application of the co-operative
principle to the higher amusements of the people, Mr.
;breast) coutMued—" I an, not hare to speak of politic.;
but for Sir. Gladstone and Mr. Forster, and for their sup-
porters in the last Parliament, I claim the merit they well
deserve fur a meaanre of infinite value to co-operation in
the passing of the Education Act. Whether this or that
pros Won be approved or disapproved, the substantial re-
sult must be to qualify all the working men of the rising
generation to embark their savings, with more confidence
than before, in a society for co-operative production. Frith
they have mastered the art of book-keeping, and have
acquired the habit of reading those trade reports affording
the only clue to their true position, the co-operative workmen
are too dependent on the opinions of others. At the same
time, I sincerely hope that the progress of education in
England may not be attended with the regrettable Conse-
quences that have followed from a wide diffusion of know-
ledge In other countries. By knowledge I only refer to
extremely elementary knowledge. In the United States
the result of universal education has been to make the
native-boa•n American averse from manual labour.
Having next referred to the peoples banks in Switzerland.
Mr. Braesey said The Committee of the Society of Artsare
of opinion that large powers for the compulsory purchase of
condemned property should be conferred on some suitable
authority—in the Metropolis a central municipal authority—
and that the land purchased should be offered for sale or
lease to private or associated building agencies. They
quote, as an instance of the conspicuous success of
such a policy, the action taken by the Municipality of
Glasgow under a Local Improvement Act palmed in
1860. Equal success has marked similar efforts in Edin.
burgh and Liverpm.l. The Artisane and Labourers' Dwelling
Act of latki, which the country owes to Mr. 11•Cullagh
Torrens, has already produced excellent results, and under
Ito provisions improvements in Liverpool have been carried
out. The Act originally conteniplated four purposes—com-
pulsory repair, removal, compeusa ' and building. The
powers of c penaation and reconstruction were removed by
the House of Lords. The Conimittee of the society of Arts
recommended that those powers should be restored.
After dwelling on the solidarity between the working
classes in different countries and on the duty of the rich to
the issir, Mr. Brassey thus concluded his address --"An
idea prevails in certain quarters abr ~ ail that there is no
sympathy between the alituent dames in England for the
masses of their less fortunate fellow-countrymen Much
more truly may it be aMrined thut in no other country is
the same deep interest felt in the welfare of the poor
There are philanthropic organisations innumerable for
giving aid to all who are in sorrow The almoners of
this generous country are among the lost and noblest in
the land. Shiny of their names are familiarly known ; but
there are a still greater number tllgngta in the same good
work, of whom the world never hears I have learnt by ex-
perience that it is often among those who are most exposed
to the temptations of ease and pleasure that the purest
charity will be found. It is btCalltlt this sympathy exists
that in England we have yet been spared the miseries of
social disunion ; and from this, the most dire calamity which I
can befall a nation, Heaven grant we may remain for ever '
ee ' "

A cordial vote of thanks was awarded to Mr.
Brassey for his address on the motion of Mr. T.
Hughes, seoonded by Mr. G. J. Holyoake.