The Portland daily press., 1867-05-15
The cooperative Society nt Rechdaie
England.
IFrom the New York Tribune.l

In the year 1874, a few weavers and cotton
| spipners in the town OF Rochdale, whose aver
| age earnings were under So per week eacE
| and who we may easily imagine, found IL yer
| hard work to make two ends meet, even wit
| the most rigid economy, determined, as mea
| sure promising them some relief, to establish
grocery store ON the cooperative principis
| They accordingly held meeting, resoiVe'
| themselves into Committee OF management
| and sending ont canyassers and collectors, On
rolled what members they could gam over y
| their project, gathering SUBSCRIPTIONS non
| them to the amount of 500. Win Lhls SINAI
| capital they commenced business. iney ren.
| ed small shop at $50 year, lifting IL up WIZ
u few plain, necessary fixtures; and with tht
remainder OF their capita, less than Sizo' tney
laid in, at wholesale prices, STOCK OF gooe
| groceries and provisions, purchasing only such
articles as they were sure OF selling, and being
| guided in their selection by their own domes-
| tic wants. They adopted as fundamental
| principle of business the cash system, both In
buying and selling, never themselves asking
for credit, and peremptoriy refusing to give 1t.
| AT first, while the members of the Society were
| few, the store was opened only in the evening,
after working hours and they thus managed
without hired help; but as sales were not con-
fined to the members their store soon became
| widely known for the good quality and the
cheapness of the articles supplied, and their
trade among the working classes of the town
increased to such an extent that it was found
necessary TO obtain the services of q paid at
tendant, to keep the place open all day. They
were now in position to enlarge their operu-
tions. As they bought more largely, they
found they could sell more cheaply, and they
sold at rate as close to wholesale prices u
they could do with safety, allowing only SUCH
margin OF profit as could suffice to pay expenses
with percentage over, which percentage was
to be ultimately divided among the members.
They had everything now in their favor. Their
expenses were small; their provisions were OF
prime quality, free from adulteration; and their
prices were low. The system, consequently.
extended itself rapidly. To the provision store
they added first a shoemaking and then a tai
loring department; and at length, after expe-
rience and success had given them confidence,
they went into wholesale dealing. The MEM
fbers at first numbered only %; but in
185O-sx wears after the society had
been at work - they had increased to 600;
in 1856 they amounted to 1000; and at the
close of 1866 they exceeded GAO. From the
last Quarterly Report of the Pioneers-ths
Equitable Pioneers is its designation-brng-
ing up the accounts of the society to the 18th
December, 1866, it appears that the affairs of
the association are in very prosperous con-
dition; that the number of members steadily
increases; that the total names on the roll at
the close of this quarter were GAG; that the
amount of cash received for goods during the
quarter was 268 216 Is l3 12 over $4,000 be ing
an increase on the corresponding quarter oI
the year 1866 of G13,042 8l01-2; that the profits
for the quarter were t9,281 1919 (equal to
$364O6 in gold; that after the usual deduc-
tions for educational and other purposes, there
would be left q balance allowing q dividend of
twelve per cent. on every $5 of purchases; and
that the gross profits for the year were Esq.,
934 3I9 IL, or $139670.
We now proceed to describe more particu-
larly the constitution of this society, and to
show the mode of doing business at the Roch-
dale store. Every member is proprietor to
the extent of his investment and the society
is therefore a joint stock company, with unlim-
tied liability, though, owing to tie cash prihci-
pie on which it is conducted, its liability is
only nominal. The original plan was to con-
stitute shares of FL $5) each, no more than
four shares to be held by one member. Each
member paid shilhng-sterling- entry,
and made small weekly payments after
wards until his shares were paid up.
Upon the completion of these payments the
owner of these shares received every three
months his interest and proportion of profits;
or, at his option, instead of receiving the cash,
he might add the amount to his account and
thus increase the number Of his shares but he
would not be allowed to accumulate stock in
the Society beyond the amount of 22OO. To
prevent the stock from becoming the subject
of speculation and jObbery, no member is al
lowed to sell his shares, and indeed the shares
are not transferable. Ifa member desires to
realize his stock he has but to declare his
wish to withdraw, then his account is made
out, and the amount to his credit paid over to
him. The Society also reserves to itself to
compel members to receive back portion of
hand than can be proftably invested u
member dies the Society pays to his represen-
tativS w.. balance due TO him. The Associa-
ton has the powe. Of enforcing all its regula-
Parliament. By this act the rules of all coop
erative societies, duly registered, are rendered
binding on the one hand, aid on the other,
members and their representatives are enabled
to enforce their claims, and guarded against
any fraudulent dissolution Of the Society to
which they belong. The common property Of
the members is vested in trustee or treasurer,
who may sue or be sued in his own name;
| frauds in respect to the Society's property are
| punishable by magistrates; and all members
| a re admitted as witnesses in legal proceedings
regarding the Society's property. 1t is not,
however, till the Rochdale Society had been In
existance for eight years, and when there were
many other fourishing cooperative associa-
tions in existence in different parts of England
| that this law was passad. The mode OF doing
business at the Rochdale st6ss IL very simple.
Every customer on purchasing an -. .aai. s Al
ways for cash) receives q tin ticket with the
goods, on which ticket is stamped the amount
| of his purchase, and which are vouchers for
| the receipt of the money. The buyer preserves
thcsS tickets until the expiration of the quar-
| ter, when he brings them to the store, and for
whatever amount of them he can produce he
| is entitled to prsportionate share of the prot
| its of the concern during the quarter.
| Thus, Ii we have expended during the quar-
1 ter, say $50, and the profits have been 10 per
cent, he gets back 50, which he might either
| receive in cash, or have the same transferred
to his account credit in his pass book, in which
case it would go to increase the deposits on
| which he receives interest. In the "Social Sci
ence Tracts" of Messrs Chambers of Edin-
burgh, it is, among other instances Of the kind,
recorded OF workingman with q vile and two
| children-who, in the year 1850 was possessed
| of ESQ in the Society, that he had by these
means recovered and paid into the increase OF
his original investments, no less than 494, 12s,
Il "a. kharr wkaIl te frsu nfo q
| workingman, who In 1854, had Just E6 in the
Society, and had paid In since only 91, yet who
has Withdrawn E92 16s 3D., and has still left
| to his credit 926, showing clear profit OF
ELL les. Cd. in six and half years.
But the principle OF association among work.
| ing men, for mu. .ual benefit, has been carried
out in another direction, with equally pleasing
results to those Immediately concerned. In
cooperative stores we have one application Of
the principle; in manufacturing assocauoni
we see another; and in the latter as well as in
the former, the Rochdale Pioneers led the way
About six years after the establishment OF the
| provision store, they resolved upon starting Q
fiour-mill. For the first year or two they did
not succeed according to their hopes, but they
persevered in their new enterprise, and did
| their business so thoroughly and well, tina
| their trade increased to such an extent that IL
| 1859 no fewer than 90 cooperative societies II
Lancashire and Yorkshire were buying thei
-four and meal Of tie Rochdale mill-owners
who were then grinding BY steam-powe
| at the rate of 400 sacks o week.
During that year they did business to the
amount Of $429225, realizing profit of $50,
575. Since that time the business has beeI
steadily increasing, the amount Of cash receN
ed for goods sold, for the year 1865 being Sa4a'
665, and the profits realized on the sales Siz,
$50. Emboldened by this new success, tnen
next undertaking was the establishments OF
| cotton factory Of their own, in when tneY
should receive wages from their own capitai
and intimately divide the profits OF their owl
labor. Accordingly, in 1854, they formed tn
cooperative Manufacturing society caPitS
eSO.6OO to be raised in 10000 shares OF 20 each
sncb shares to be paid at once or by install
m,nts of shilling week. They commenced
nnarat;ons in hired building; but as the!
flnpd a ready sale for their products, and thei
canitai steadily increased, they ware soon abl
| to build their own factory, and stock
| with all of the necessary machinery
In 1860 their capital had swelled TO f64 oOO
their members numbered 600; they had 80
looms at work, $4,000 mule and throstle spin
dies, and employed 20 hands. According 3
the last report recently published, their capita
is now about G91 600, and they received cas-
for goods during the year 1865 to the amour
of G133,8 ,895. The working of q co-operativ
principal in factory or any other industria
undertaking is but q modification of the pla
pursued in the stores and which We have q
ready described. just as the customers at tn
store receive profit proportoned 10 tner pun
chases, SO do the workmen at the factory ,e rs
ceive profit In proportion to the wages sny
earn. And lust as the success OF the nocnoai
store led to the establishment Oh Lunorou u.
places of business of similar cnarac.ei, ~ %
prosperity of the pioneers Nv nv the the formation
a;n,;ian ~ nssociation in other districts In rae
os tha nr;nciples OF cooperation became gehet
"a, .ne pnwn 70 the industrial classes, they wer