New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-09-13
COOPERATIVE STORES.
HOW THEY ARE ORGANIZED.

HOW THEY ARE ORGANIZED.
William A. Hovey Editor OF The Boston Transcript,
read a striking paper on Cooperative Stores IL
Tueland and America
Tnero have been many schemes. many attempts and
man, failures. the latter Arising ci'n nom one o. Two
causes. aud many IN measure rom o9'l VIZ in1ei
ue forms of celebration have attained greater pro
,ri,s and greater success this country than any
i.hc- onr swings bauk system is cooperation IN rs
,iut.k..t form. Much of our life. Ire aud maiihe
Insurance l. conducted the purely mutual"
~ "a The cooperative basis. The pay OF our
ii-hcrmen has generally been III piopofu0n to the
,,s the largest possible catch In the shortest possible
truc. This l. cooperation IN the rough in Insilld
whore coOpsrGtiOn Is largely iaclie an YER genera
understood. very snpc methods nave Dcch lstuei IA
the dear school {" ApVi'ShCe, a'u H. - iS NJ
fct In It's provisions for securing mi equity Tor al III
f.rsrd Ia order understand tins ~ stem II Is nee
e.ary to the fundamental principles upon which
AZ 3. BASED Ibcee are
holder entitled 10 one vote ana no noie 10 matter
how many fhares hc may mold . .
ceves h due IN pfo?O.uoa to The number Of shares
il holds. bat ia proportion - N %n.ohu "noI "y ns
Tce two points require explanation and elucl-
H. almost all stock conpauis each share IS entitled
4 vote. Il J. the SHARE, lbat N.'' ho th'
holder The coo cTat've system regards the
poor mans one share az just rs much anu
I'm twenty thiIy shares are 10 bin and con-
fdcrs jnst much interested as the oihe There
IRE every shareholder Is allowed ono VOC 1.u e
only and hat vote must ne cast IN peisen In ms way
il on OF NJ hands OF the lew, ana ~ II
ns much interest al the small stOckhodcr To at
tend al meetings and keep himself iuforned concein
III fis the company It's business, G"G The GOngs
OF its officers, a. for the liige sf0ckholder
q Ins second fundamental principle j. th8t
lie profits shall be divided, not according to
me amount invested. but In proportion 10
10 amount that the purchasers contribute TO
fuch profits Here. too. tic plan differs radically from
The ordinary jOut-stock corporations, IN which tie
rror- are divided among the several ne nbeis or share
holders according 10 their proportion or oWrfshp OF
ine captal stock. A cooperative company looks upon
tlc money invested by IL members ~ saates Ia D1r-
IoW ed CAPITAL Interest toe capital stock Is an *
pensc and charged 10 account as much A. is
Inc rent uf the stui the salaries OF clerks aud other
smploy g. and The "pror" Is what remains eter ths
ana all other expenses have been paid Capital J. pad
ior al fair Of Ald has further interest
Ivhe profits. These belong 70 tie coOperators not ~
lolucrS but purchasers, and In part TO pur-
CuaseTs hot shareholders
now THE system WORKS.
In order 20 make cleaI and to how prin-
eipes LAID down work in actual practice. let suppose
4 narrative store Aiartcd tie ROchGa!e plan with
ca, u SO 600 divided into 500 shares at 81 each.
take thess figures because they represent tie actual
fact IN the o. Icraiiye asOciauon Jus oi med
in Boston, witch has recently opened for the sale
If groceries aud other aToes Let suppose that tie
ard sDares five hundred different PERSONS lots OF
from three shares, ana the remaining 300 shares
a. soue one person, who - wiling to "CaTIy" tbs
uon femroraTy receiving his interest Ike the 9th,
chafcl5l IN proportion to ais 81, OK, Tut having
amer nGyant age ownership. The tt.T T.
,nse ana the coo make ih'r purchases there
paying cash down for every purchase aud pay ns