New-York tribune., 1870-01-15

TAGES OF THE NEw-THE MASSACHUSETTS
COOPERATIVE LAW-AGGREGATE RESULTS
OF THE BUSINESS.
fFROM OUR own CORRESPONDENCE
BosToN, Mass. Dec. 23.-While cooperative facto-
ries in this State comparatively failures. Us
have endeavOred TO show III former letter, Massa-
chusetts cooperative stores have proved decided
success. There are not less than AZ of the latter in
active and successful operation in various manufac-
turing towns in the State; and the establishment Of
others is almost daily reported TO the State author-
lies and labor organizations here.
Though mono Of tho most successful OF these stores
have as yet reached the magnitude and wealth, or
extendei their aid and direction to so many branches
OF industry and trade as the famous store of the
Equitable Pioneers Of Rochdale pioneers also OF
Cooperation throughout the word-thcre is not one
of them but is ugon better and stronger financial
footing than the Pioneers at the same age The
Massachusetts, competitive stores at their present
age Of three years. are pIgmlcs compared to tho
Rochdale stores as they now exist after p years
operation; but they giants compared to the same
enterprises, when, like themselves at present only
three years old For the l2 poor weayers OF Koch
dale who founded the Equitable Store "-iascl-
mating title to poor English laborer each Oh these
= towns can point to ten times as many hewers III
wood, spinners of cotton, delivers in iron. and
workers in leather as their stockholders subscribing
dimes where the weayers gave pence. The kochdao
stockholders in the twenty-ffth year OF their en-
terprise, numbered about 1900; there are already
not less than 1000 stockholders in the Mas
sachnsetts stores to begin with, and many Of
these own numerous shares, whereas each Rochdale
subscriber could have but one. How many CO.
operative stores and stockholders there will be
twenty-five years hence can hardly be imagined.
ho
merous Massachusetts, stores havo begun With ten
times as much. and in two OF three instances with as
large an amount as 1000 or 5000 Of paidin capital
When these stores shall have been in operation as
many years-a quarter of century-as the lIochdale
stores perhaps they too will beabe to report as tho
"EGuitable Pioneers did last year tij that 1900
stockholders. with capital Of 100000 hays been
enabled to run clothing, dry goods, boot and SHOE
and grocery stores several butcher shops, farm,
cotton factory. a corn mill, maintained public IL
brary and reading building, life. and o
burial society and, after supplying stockholders ard
customers generally with all the necessarleS and
many of the luxures of life at less than the retail
prces, have divided among the stockholders profit
of 80 per cent on the capital stock.
How much of this may be done in the future re-
mains to be seen; it is to the purpose just now
to tell what has already been done.
LNExPLoDED SYSTEM OF COOPERATION.
system of cooperation was authorized by the
the Massachusetts, Legislature % years ago. 1t was
modelled in theory on the ROchdale plan, of which
much was heard and little understood at that time
but, practically. it was simply combination OF
hOusekeepers to purchase various commodities at
wholesale and divide it among themselves at cost
This was known as the Protective Union System
and numerous clubs or divisions. as they were
called. were organized in accordance with 1t. The
name Protective" was derived from the design Of
the union. which was in the plain English Of those
who have to buy but never SELL Protection from
the rapacity of dealers p Whereas" exclams
with something Of the manner and elOquence of tho
Tooley-st tailors, the preamble to the Constitution
of one Of the few surviving divisions of the Pro-
tectIve Union.
wbereas the Producing Glasses receive small m
eovaent for their toll that in most surplus
mains after the purchase OF the neccssaries o me- ana
whereas they with their small means, are subjected 10
disadyantage in making their purchases alone, which
union Of their little capital with that OK ther Dr0ter
aborers would overcome therefore in order TO establish
inst and economical method for the production. dis
tbntiOn consumption Of the fruits or human lbOus
try; 10 relieve society OF the burden Of sustaining useless
functonares In the several departments Of mercantile,
civil aud social lfe to establish such system OF eH-
change as shall protect and ennobe rather than spOate
and degrade Labor associate Producers into organ
i1aton fof their mutual benefit and improvement and
10 secure 10 each e strength OF all, we adopt ana estaO
lish the following articles OF agreement
Commcndabe as this purpose was, the system on
which il was based had three very radical defects.
First it confined the benefits to limited number of
persons secondly while it restricted the shares to
few il did not prevent one person from buying mp
and owning all the shares: and thirdly, 1t made no
provison for the increase of the necessary capital
Before these defects understood and corrected
many of the pioneer lodges had paid the natural
penalty of q defective Constitution and died. or
turned by the absorption of shares, into individual
enterprises Only few Of them have managed to
survive by adopting superior system Of general and
not restricted cooperation These are at South "ey
mouth. Lynn. Charleston. and Worcester have
inst returned from visit 10 Protective Union Dl-
vision No A. Worcester" where, by the kindness OF
its Manager Mr. Samuel A. Pratt, have learned ITS
history and manner of operation IL is the history
really of the old cooperative system OF this State
and as one may learn as well from the mistakes as
the successes of Others relate 1t briefly promising
that the success in this instance resulted from the
early discovery and renunciaton of the now evident
errors,
THE WORCESTER BRANCH
The Worcester Division Of the Protective Union
WINS Organized in ls4s. Seventy heads OF families
combined and subscribed each $40 to form capital
with which TO purchase their grocery supplies. Mr.
Pratt was made the agent or purchaser OF the con,
earn his business was TO bny supplies at the lowest
rates and sell them to the members for cash at the
cost price plus the freghage. salary rent and other
eypenses; and to other customers than members at
a fair proft-a small fixed percentage being agreed
unon. do not know what this percentage was Dut
II was little less than grocers usually expect to
realize; in other words the rates of charges OF the
Division were little lower than other stores to gen
ernl customers. aud great deal lower to members
The idea was that the profit from outside custom
vonld pay the entire expense Of the establishment
The results. practically, were that the ~ share
holders obtained their groceries at saving
-. ,,L;la tina non-sharehOldiug