New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1870-01-29

ana give Nttft 10 t,tClI '''tl 'i"'4'' '''''''
On this plan and under these circumstances with
acaptal never greater than 5000, the business OF
the first ycHr amounted 10 $3.50 20
BY the end of the first year Of operations great
error i'm the scheme discovered and abandoned.
The par value OF the shares had been fixed at SO
IL was too high and the effect to limit the num-
her of stockholders and the amount of capitalize
first rc0uisites TO success Few operatives had $50
to put into any enterprise and fewer stil TO invest
what litto they had in any enterprise of which they
knew nothing IL was decided TO lower the value
and increase the number Of shares. Many advocated
fixing the former at S and the latter at 1400 but
it was finally decided to put the figures at $40 per
share and 200 shares Instead Of The $50 shares pre-
viously issued G2 were now sold; and instead of 80
stockholders 40 now became personally and pecun-
ary Interested in the OF the store. The out
side trade was naturally increased through the IN
fuonce OF tine additional stockholders, and the busl
ness rapidly enlarged. do not know the amount OF
business done the second year, but the profits rs
officially reported, amounted 10 $3.50. sinking
fund OF $j4j established; $500 was invested III
real estate and zoe 81 was spent in fixed stock"
The various dividends on the second years business
were as follows:
10 per cent % profits for sinking fund.
10 per cent OF profits to stockholders on their stock
q per went stockholders the amount Of their
lpcr Cent vent to nonstockholders on the amount Of
their purchases.
81 per cent total dividend.
am assured from another source that these dyi-
bends were over and above another of 5 per cent
declared as interest the capital. making total of
about 80 per cent profit divided among the co0peIa-
tiyes. l do not know the result Of the past years
operations the official reports not yet being pub
lishcd; but have been told that 1t has been even
more marked than in preceding years.
TIE wOR ESTER STORE
The Worcester Store was organized in 1896, prin-
cpally by the operatives IN the Bay State Boot and
Shoe Factory. The capital fixed at 5000, in
1000 shares of : each. at the time it proposed
TO begin only 81 shares were taken by operatives,
giving a capital of only $50. The managers repre-
scented tie condition of affairs to Messrs Isaac Davis
and H. II. BIgelow, two large manufacturers of the
town, the latter of whom particularly interested
in cooperation in manufactures. These gentlemen
examined the project and subscribed for 100 shares
each, making the total shares to begin with 287 and
the capital Sl,lS5. The first misunderstanding from
an undue influence of one of the 100 shareholders,
Mr.. Bigclow, who naturally desired to know how his
money was TO be managcd-was the selection of a
Superintendent with experience in the trade and the
fixing of his salary at too high figure. Under his
management the business for the first six months was
complete failure. Numerous discussions arose, and
the personal unpopulariy Of Disappointment led
70 his removal. Mr.. Bigelow became nervous over
the chosen successor and decided 10 sell his stock.
The managers represented that TO purchase his stock
would, at that time swamp the concern Mr.,
Bigcow thinking that such was the inevitable fate
OF the establishment under the new management,
preferred to withdraw. The Managers then went to
Mr.. Lucus b. Pond, large capitalist and mauufac-
tUrer Of the town and represented their condition TO
him. lie carefully examined the books of the Store
saw the condition the business in and agreed to
take the stock. Handing a check to the spokesman
OF the Managers, be said:
"Hgre is $lO0O-all l can subscribe by law Take
il and use it, repay it if you can but if not well and
good. But if you need more TO set you your legs
lot me know. viii gladly give as much more to
have the factory operatives establish and demon
strate their ability to conduct cooperative at
Worcester"
Only 500 of Mr.. Ponds subscription was finally
accepted by the Board, and the stock Of the dis
satisfied member was bought in. The new Supern-
PENDENT was young man of experience and indus
Try, who materially reduced the expenses. In few
months the business began to pay and is now estab
lshed on paying basis. Five hundred and sixty OF
the 900 shares have been sold onl che Poid in ooI'
tai is $500. large percentage above the surplus
fund dividend was declared in January, 1869, and
stin larger one will be in January, 1870 The asset,
mt the last report, Nov g. 1858, exceeded the liab
ties by $500 A trade dividend Of per cent was
declared last year, on which non.stockholding GUS
toners realized all manner of SUMS from 2j cents to
go. When was in Worcester tho OtLer day, the
Superintendent was on the eve of moving into new
qnarers-One Of the haudsomcst stores in the town
This store is in the same town with the successful
rlub store of Samuel A. Pratt, esq. described in a
former letter. There is rivalry whatever between
The two; nor has tie Cooperative Store met with
opposition from other merchants.
NORTH BRDGEwATER STORE.
North Bridgewater has a Lodge of the Knights of
ST. Crispin the strongest Trades Union in the State.
which numbers $50 men. Several members of this
Lodge attempted. in 1868 TO get up a Cooperative
Association, but were able TO dispose of only 40
shares at s. each, thus raising 500. This was not
enough TO begin and the Lodge voted to take 100
shares, paving for them out of its fund.
The capital stock was thus increased to 81 POO.
and this sum the Co-opeIatives deter
mined TO begin. But unexpected difficulties
presented themselves. The merchants of North
Brdgewater fearing the effect OH THEIR trade of the
establishment of a store TO be conducted on plan
calculated to reduce and regulate prices and to mo-
nopOize IN time the retail trade of the town CON
suited together and succeeded in preventing the
operatives from securing a store-rOom. Weeks were
spent in fruess search until the cO-Operatiyes were
driven to purchase old stable or barn the edge
Of the town. This they fitted up as store-room at
cost of half their capital With the remaining 500
the agent went to Boston and bought all the goods
possible for the amount On the opening day of the
new store 500 worth Of supplies sold The
money was sent to Boston and turned into stock On
the second day 800 more of cash taken in, and
turned into stock, thus keeping up the supply. And
thus the capital was turned over and over at a rapid
rate and good profit.
tla