Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1870-06-02
A Cooperative Association.

The Pioneer Cooperative Association
Of Rutland has, we believe, been organ
lied. The object is to enable its members
to procure such supplies as are needed fol
family consumption and use at original OF
wholesale prices, with the addition of the
cost of distribution.
In retail stores, as commonly kept, the
purchaser pays, first, the wholesale price
second, the cost of storage and distribu
ton ii. O., store rent, clerk hire, gas, fuel
&c) and the profits on the capital invest
cd. III the business is conducted on the
credit basis, he pays in addition all the
bad debts of the concern. There are two
of these items which this association mean
to getlalong without. BY purchasing and
selling tor cash, they get rid of all bad
debts; by being themselves the capitalist
they have the profits upon the capital
iuure to the stakeholder.
There are several considerations which
render the prospects of such an associa-
tion fiattering in this place.
/. The assured good faith of the deal
ing. The association purchases for its
own use, and therefore all the articles are
of good quality, unless it intends to cheat
itself.
2. Its dealings must be fair, for it deals
with itself.
Sd. It purchases for cash. This always
implies liberal discount from credit
prices.
4th. II sells for cash absolutely. This
protects the association from loss, and the
members frosa ehe evil of anticipating
their incomes.
9th. The profits upon a members pur-
chases inures to the purchaser If, for
instance, he purchases a pound of pork at
20 cents, and the profit upon the sale is
five cents, after rent, ETC., are paid, that
five cents inures to him as profit to be
returned as dividend, or as accumulated
capital.
A single example will illustrate the
working of the association. There are,
say, one hundred members, who require
100 barrels of -four per month. Those
100 barrels, purchased at retail groceries
will cost, say, $40 per barrel. These are
purchased of the millers at 50 per barrel
at 80 or 60 days credit. For cash they
could have bought at 1915. Twenty-Five
cents barrel would pay the cost Of cart
age, etc. Thus it will be seen that The
association makes one hundred dollars pei
month, or twelve hundred dollars pei
year, and each member saves twelve dol.
lars annually in this article.
the success of cooperative association
is assured if they are conducted with pru
de, y /; if they keep clear of debt ; if they
sell nothing on credit, and if they car
bring together a considerable number o
families into the cooperation.
The larger the number the more assur
ed the success. 1t costs no more for stor
rent to distribute for an hundred famil
les than for ten, no more for fuel, gas O.
attendance. Besides, the larger the pur
chase the cheaper the purchase. A ca
load of flour is bought at cheaper rat,
pck UaILSl tuhu bWO DdTTelS. ne Ire1gu
is less also. SO whole carcass of beef il
bought cheaper than quarter; now
unless the number of purchasers is larg,
enough to consume the whole carcass tn,
purchase must be confined to the quarter
The experience of the past has pointed
out the occasions and causes of failure
These associations are now managed as L
make them almost uniformly successful
1t has been found that the benefits O
them have not been confined to artisan
and mechanics. Professional men and al
others of limited income have found thei
account in dealing with these co-operativ
stores.
We hope the Pioneer Association will
bear in mind that their success is not +
be accomplished without prudence an,
business knowledge on the part of it
managers, and further, without careful
attention to the details of business.