New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-07-28
COOPERATIVE SYSTEMS.
HOW THEY WORK IN BOSTON

| CAN IMPROVE THEIR CONDITION.
| lFRoM AN OCCASIONAL CORRESPONDENT TIKI TRIBUNE /
BosToN. July 23.-One of the monthly meetings
and auction sales of the Homestead Cooperative
! Saving Fund and Loan Association was held in
this city the other evening, when the sum of the
monthly instruments, brought in by depostors was
directly afterwards put up at auction to the CHEST
bidder. There were present about sixty well-tu-do
mechanics. An hour or more spent IN taking in
the money. which amounted in all TO $4,000. 1t
put up ID lots Of 81 900 and 81 600 the bidders
having the option to take the whole or any part of
| the proposed sum. The bidding was very spirited
and tbI whole loan was speedily taken at premiums
| of o, 10, IL and II per cent, in amounts ranging
from $50 TO So, 0O0 The president Mr. Joseph s.
| Ropes, well-kn0wn merchant Of this city, who
! acted as auctloneer, reminded those who had paid
thus high premium to watch their chance at the
ceeding monthly meetings and get their loans
changed to others at lower rate, for doing which.
he SAID, there were frequent opportunities.
There are two other similar institutions IN the
city called the Pioneer and the Workingmen's. the
latter Just started. The first two are in part under
the same management, and all are IL thriving con-
dition. The system upon which these associations
are conducted is similar 20 that OF the Philadelphia
Building Association the working oil which has
filled that city with those hundreds of handsome,
substantial homesteads, built and owned by the
working people. which 10 distin guish 1t from
all other cities in the world. The shares in these
loan associations are issued in quarterly, half
yearly or yearly SERIES and the ultimate value of
each is 5000 No individual is allowed to hold more
than Twenty-Five shares in either corporation. Upon
each share the stakeholder is required TO pay
monthly u" due" as 1t Is called, of 81, until such
share shall under the Of the act reach the
ultimate value of 5000 when the payments cease.
The system is somewhat intricate IN point OF minor
details, but the main idea is simple enough and has,
| believe, already been set forth in THE TRIBUNE.
The advantages. moreover, of the system
apparent. In the language OF one of the officers,
one may indeed. SEE his money begin to earn
something upon the date of its payments may
see who borrows it; may know how much ID paid
for il and in fact, may know all that IS desirable
to be known by any shareholder as to the business
and the method of conducting it," For every loan
taken ut the auctions, as above described, note,
secured by mortgage OF real estate. is given, ac-
com panied by transfer and pledge of the shares OF
the borrower These shares are held collateral
security for the loan and all subsequent payments
of dues" and all profits and gains accrulng after
ward from time to time which would otherwise 90
to the credit OF the borrower, are taken pay
ments on account of the loan until it is cancelled
by the ultimate value of the shares pledged or
otherwise, as the may be.
New series of shares, in the one case the fourth
and in the other the sixth, advertised by the
" Pioneer" and Homestead" Associations. which,
considering the short time they have been in opera
ton, sufficiently attests their popularity, while the
announcement made by the Secretary that the
shares have earned interest at the rate of per
cent during the past year and that the same has
passed to the credit OF the shareholders ought to
insure their success. Where else men ask them
selves can money be invested for such high rate
of interest upon anything like such security II
would seem "a ii the mere bringing of these facts
| home to clerks mechanics and working people in
| word, to all who, IN doubt what TO do with their
small surplnses. often end in squandering them.
I would be sufficient. IL seems az though general
! understanding of this system, its real simplicity
despite It's many details, and ITS absolute security
would insure its general adoption, and pave the
way to "a new era OF Thrift, prosperity and comfort
for a very large class OF hOme-lovlng, tenement
hating people.
Bar il was not so much Of these loan associations
thus steadily advancing IN public favor, and bound
IN time 10 WIN then way, that purpOsed to write,
a. o. a kindred institution with winch they are III
timateiy allied, VIZ, the BOstOu'Or as tits
| times called-the Quincy Cooperative Store
This a shop established for the sale of hrst-class
! groceries. !! owes its origin 70 tae Hon. Josiah
Quincy, who is still the president of the association
and one Of ITS me- 81 active supporters. he store
opened April 10, 1879. and has, therefore, been
operation a Itte more than year. The capital was
! fixed AZ $4,000 divided INTO loo shares OF ~
each. The bylaws provided that no person shall
| own than fifty shares at one time The en- ter-
PRISE based upon the English or ROchdale system
which has been so enormously successful In Eng
land. The Inducements presented to the public and
tue ad vantages Of the system thus briefly
densed FIRST goods sold at market prices
second, only goods of the best quality sold
third ull weight or measure is guaran teed; fourth
cIvliIty from the stOrekeeDers and statesmen fifth,
no losses from bad debts; aud sixth. an equitable
share In the quarterly distribution of profits.
The bylaws provide that quarterly adjustment of
interest and profit shall be made, and that each
periodic stock-taking IN case Of successful bust
ness all the shares shall be credited with interest
the rate OF per cent In case OF loss, OF course
the loss IS deblted TO the shares pro rata. After
such credit If II shall appear that there has
been net profit the contingent fund Is to be cred
lied with the percentage required by law, and the
balance distributed To the purchasers IN the shape
of dividends. Everyone making purchase, how
ever small. the store receives a dividend check
showing the amount of his purchase duplicate of
which kept by the store. AT tue end of the quar-
he brings In hls checks, they are exam ned and
If found To be correct, he receives his dividend IN
cash 10 should be added that dealings are not con-
iued 10 members. but sales are made TO the public
generally upon the condition that the non-membeT
receives only half dividend
On talking with the officers it is learned that
though tar from a failure and though all the tine
slowly gaming ground, the store has not met with
the expected success This may be largely
accounted for by its location, which at No.
Coruhiil-that is, down town among the places of
business and removed from the residences of It's
customers. In other words, it Is decidedly out of
the way. To be sure, as the circulars say, horse
cars TO a great many different points pass the door
| but experience shows that people will not buy
groceries in small parcels to for any distance.
and tnat not the frugal mechanic or the prOYi-
| dent working man Will GO far out of his way TO
make small saving upon pound of sugar or a
quart of moasses. Again, the public very slow in
taking up new idea of this sort 1t listens with
apathy and classes it, not unnaturaliy, OF the
| latest catchpenny lodges of trade.
| Happily the success OF the system does not de-
pend upon its slow or quick reception in Boston.
The history of the loan associations" shows what
a strong hold the principle of cooperation is taking
upon the interest and understanding Of our work
iro whI he almost nf
the results of It's longer operation III England put
its ultimate triumph beyond peradventure. The
marvellous story Of the Rochdale weavers and the
almost incredible fruits OF their timid humble be-
ginning should be printed and reprinted and
dinned into the of the respondent, discon-
tented improy aborng classes OF this country
till it takes hold their minds, till II avakens