Vermont farmer. [volume] (Newport, Orleans County, Vt.) 1870-1877, 1875-10-15
The Rochdale Plan.

In many parts of the state, Patrons wish
to start trade stores and are asking us to give
them the details of the Rochdale system rs
applied to grange cooperation.
While we ARE willing to do this, we also
desire to say u few words OF caution. And
the first and most important IS, never to I'M
dertake to start trade store of any kind
until you first have exactly the right man TO
take the active management OF 1t. And If
you have no such man, just let it alone.
This man must not only be u good man and
n perfectly honest man, but he must have
iirst-rate common sense, be quick in his cal
culations, and must also have had some bust
ness experience; and you must not expect
to get such man for dollar u day. Any
man who will offer to do such business for u
small sum. will not do to trust in il, for il he
has the capacity to manage such u business.
he can get, perhaps, twice that much any
where.
Next, do not undertake to start with n
| small capital if you do, you hre certain To
make failure. Less than two thousand
dollars will not keep respectable assort-
ment and 1t ought to be much more than
| that
Next, never credit dollar. no odds how
| good the customer Is.
These premises being considered estab-
| lished, now for the plan.
The central idea of the Rochdale system is
that the net profits belong to the customers,
after II fair compensation to the capital
which we will say is $4,000. A sha re of
stock is made ten dollars, which any Patron
may subscribe and receive certificate
therefor, on which he shall receive ton per
| cent per nnnum out of the first profits made.
The goods are sold to all Outsiders included)
Mt profit of say about ten per cent over cost
and carriage, amounting TO perhaps twenty
| per cent on the cost. Each stockholder, or
Patron who has paid in Que dollar, receives
u certificate whenever he makes u purchase
to the amount of one dollar, and ut tho end
of the year he receives a dividend on the
amount of his purchases of all the profits
made. over and above paying expenses and
ten per cent on the capital; and tho Patron
who has paid in one dollar. receives "A Ger.
tiiicate of stock whenever his profits amount
to ten dollars. Those who are not members
of the grange receive no dividends
None but Patrons can take stock, anC
I they are allowed to sell the stock only 10
Patrons, The stockholders elect board o
directors to manage the store, who meet
elect business manager and put him undel
bonds, and keep n constant supervision owe
his books and general management, reEu
late the prices OF goods, and make dividend
at the end of the year. Don't forget TO b.
Incorporated at the start.
If il Is carried on just right, 1t may be
great blessing TO the communicable Is mis-
managed and business principles are ignores
IN conducting il, the result will be iAilur
and discredit to all connected with It.
/. you touch it, be cautious, prudent and wor
!, with will and energy 10 make it u success.
The above is taken from the circular Q
. the executive committee of Missouri stat
q grange, The Rochdale plan is in success
. full operation is Sedalia, California, an
0 many other places in Missouri. There ar
o several other equally successful plans i
J, operation among the Patrons and SovereignI
!, At Springfield, Worcester and Lawrenc,
!, Mass, the SOvereigns and Patrons hay
J. united their capital and started stores upo
f a somewhat different plan and are very SUI
!, cessful. We must warn our brethren, how
f ever, to be cautious in starting stores The
I. can only be made success when ample cal
,f ital is made up; when there is sufiCieI
trade 10 sell at least $4,000 worth