The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-04-13

In It's best days TO an amount ranging from
S1,0OO,OO0 TO $2,00O,O 900 annually. But gradu.
ally this association foil into the same mis-.
takes which have been fatal TO 30 many ex.
periments in France. Outside funds were
borrowed at high rates Of interest; or a con-
trolling share OF the capital invested was
conceded to non-producers; or the MANAGE
ment was intrusted to incompetent persons
having nothing at stake in tho enterprise
or, worst Of all, n violation OF the rule to buy
and sell for cash was tolerated.
A better prospect OF permanent success
seemed for time TO be afforded by the
moro recent attempt at cooperation in New
England, controlled by the organization
known as the SOvereigns Of Industry. Be-
tween 1874, when this association started,
and the close OF 1876 the number ofbranches
or councils had risen from 80 TO 1G6, while
the membership had grown from $500 to
| 10000. Two years later, however, both tho
councils and the number OF members had
diminished by nearly fifty per cent and
| good many failures had occurred In the
union stores. Here the goods were not sold
at retail prices. the profits being divided at
the end of the year, as In tho Rochdale
scheme; but, as a rule the sales were made
| with small allowance above cost to meet
| expenses. or the cases reported however,
| some appear to have been notably SUCCESS
| full For instance, the union store at Natick,
| where all purchases and sales are strictly
for cash, paid thirty-nlne dollars in ten
years by way OF dividends on each ten
dollar share, besides the six per cent. re-
quired by law. Precisely analogous results
are reported from Ohio, according as the
associations vigorously adhered TO or
swerved from the Rochdale model.
Let us look now little closely at this
Rochdale precedent, and see what these
methods are whose scrupulous application
everywhere insures success. In the first
place, there was no admixture OF non-pro-
ducers in the membership, no reliance ON
borrowed capital. The society was COM
posed originally OF twenty-eght flannel
weavers, who set out TO become their own
purvoyors. One Of the fraternity was placed
In the position OF salesman and their scanty
stock was stored In room hired at yearly
rental of fifty dollars. So prompt and profit
able, however, was the sale OF this initial
stock for ready money, that the experiment
soon acquired large proportions, and the
number Of operatives belonging to the So
ciety rose to many thousands. 1t Is re-
markable fact that the profits earned on
capital in the second year, 1sI5. NeiA tsH,,;,,.t
per cent, and that they have never since
fallen below TWENTY-FIVE per cent. ranging
from that hsuie to forty-seven per cent. As
eaIIV as 1s47 there seemed TO he a necessity
for adding to the provisions sold, cotton and
woollen fabrics TO a moderate extent; and
In 1850 a butchers shop was appended, fol-
lowed by a bakery and a coal yard More
over, the cooperative principle was applied
TO production as well as distribution, shoe
making. tailoring, and other manufacturing
undertakings having been entered upon in
1852. Nor was 1t long before this working
mems association set apart two and a half
per cent Of the net proilts-which sum now
exceeds $1,000 ycar--for library purposes
At Rochdale, as well as in the almost
equally notable association at Halifax, the
management is wholly in the hands Of those
who had previously been wage laborcrs.
chosen by a central committee with refer
ence to their honesty and experiences
wise precaution is also taken to limit hold
ers OF shares In these stores to one hundred
OF s. each, and no individual is permitted to
represent on voting occasions more than the
maximum named Such a safeguard against
combinations TO centralize power has been
found Indispensable. Care has been taken,
too, TO hinder stockholders from being
transformed through excessive profits into
class Of non-working capitalists. Not
more than five per cent. per annum is al
lowed TO he paid as interest on the fixed
capital, aud after deduction on this score
as well as for library and other educational
purposes, all the rest Of the earnings are
distributed among the patrons Of the stores
This is effected by a very simple expedicnt
The goods are sold, rs we have said at ordi-
nary retail rates, but every buyer receives
tin ticket on which the amount Of his pur-
chases is stamped. The dividend accruing
TO each customer at the end Of quarter is
proportioned TO the aggregate sum repre-
seuted by these tickets.
1t is well known that the Rochdale enter
prise is not only financial success OF the
first order but has powerfully conduccd TO
the moral meloration OF the community
Nor is there any reason why an association
started by twenty-eight poor weavers, who
could only amass their small initial capital
by weekly installments OF few cents each,
should not be reproduced in the United States |
with equally striking and benellcent results. |
IL only needs that methods and principles |
whose utility has been SO signally demon |
strated should be thoroughly understood |
and faithfully followed