Evening star. [volume] (Washington, D.C.) 1854-1972, 1890-07-12
A CONSUMERS UNION.
A COOPERATIVE Society That Comprises
the Whole City OF Breslau.


Consul Dunlap in a report 70 the State De-
partment on the Breslau Consumer Union
says: This is an association founded upon the
cooperative plan, and has been in operation
in the city of Bresau, Germany, for twenty
four years. Ii first started with only forty
members, who, being convinced that the true
way TO make money is to save it, entered into
an agreement to purchase all their supplies for
family use, so far as possible. at one place,
which should virtually be under their control
and the profits, il any, inure to themselves. A
small room rented, a man employed TO
take charge. and the union at once entered
upon a successful career. This organization
took place in ls66, and without capital stock.
except that each member paid as a member
ship fee the sum of 50 pfennigs (l2 cents) and
a further sum Of 40 pfennigs 90 cents) to pay
the cost OF his pass book, and which latter sum
is returned to him in case he desires to with
draw.
From this small beginning the number OF
stores has increased TO orty-three. in different
parts Of the city, and il is the intention of the
management to increase this number SO soon
as an increased membership demands rt.
The business of the union is conducted by u
board OF forty-three directors. elected by the
members, and these latter choose an executive
committee of five members. who have control
OF the actual business. The former ~ called
the board of direction and the latter the board
OF management During the wear 1859 the
former board held twelve meetings, the latter
one hundred and four.
WHAT THE UNION DOES.
The business of the union consists in furnish
ing. at the usual market price, all kinds of
groceries. -four, coal aud bread. and Gt need
hardly be said beer and wine also. which are
here included among the necessaries Of life.
The goods sold are all Of good quality, and
being uIchased IN large quantities. are some
times sold lower than the same are sold by
other merchants, though this is sought to DO
avoided IN order not TO create an Antagonsm,
or rather not TO extend that already existing.
No goods are sold 10 persons not members, aud
members are not bound TO purchase exc lusively
OF the union, though when they do they must
invariably pay cash. IL Is 10 this fact that
much of the success Of the union may be at
tributed.
During the year 1888 the sales OF the union
amounted TO Sl,499. 529.s4; in 1859 to Sl.763-
92O.OS, the profit on which. after paying all ex-
penses, amounted TO slSs247.76 In 1883 there
was a membership of 2s,059; in 1889 of 81. 5ss
This in city OF $4,000 inhabitants would in
dictate that very large majority OF the heads
OF families patronlZed the cooperative store
A coal depot is located at a central point in the
city and orders may be left for coal at any one
of the stores, but no dividend is given the pur-
chaser Of coal. The union owns and operates
one of the largest. if not the largest steam
bakery in the German empire. il having daily
capacity OF $1,000 pounds of bread which Is
now to be increased 10 $4,000 pounds daily.
Ordinarily no one in Germany bakes bread;
hence the demand for that article which, in the
case OF this union, is made Of rye, baked ia
round loaves of pounds each, having the i'm
print of the union on each loaf, and is sold for
the uniform price Of As pfennigs Ola cents).
This bakery gives employment TO ] superin-
tendent, 4 chief baker, 80 bakers, 2 machine
heaters, 80 drivers and stable men, female
workers, Waterman and % horses. When not
engaged in delivering bread the drivers and
teams haul supplies to the bakery aud 10 the
stores.
The other operating force Of the union con-
sists Of IL superintendents (who are also pur-
chasing agents., treasurers. Al chief male
statesmen directors of the stores, 8 women
chief saleswomen. % male clerks ana IS female
clerks. The wives OF the chief statesmen assist
at the store whenever IL rs necessary.
PRICES AND PROFITS.
The prices and profits for the year 1889 both
show decline, the latter being two-thirds Of
per cent less than in 1883; but at the same time
the cost of maintenance shows the same decline
and customers have had the advantage Of de-
cline in prices on goods The expense of con-
Quoting the business during the year 1859 was
$50, 5s279; permanent investment and interest
on purchases, sl0. 3O7.62; pay of directors and
managers, S5.S7952; dividend checks, SI73-
SSO.7s. The profit during the year was l5.l7
per cent, expenses, 500 per cent; net proht
1913 per cent. The average amount bought by
each member was S62 40.
The system regarding dividends 10 as follows:
IL is assumed that the average profits will be
10 per cent, and each purchaser OF a marks GA
cents) worth of goods il entitled 20 q ticket Of
10 per cent, which he must demand at the time
the purchase is made. This ticket he can use
IN the payment Of more goods or lac can retain
the same and at the end OF the financial year
receive pay for them in cash. There is Of
course. OuIte A eavel In tls un hx
pie not calling for checks or where the pur-
chase Is too small TO entitle the buyer 90 one
though the frugal habits of the German seldom
permit him TO overlook even q small sum thas
may be his due. The union owns Q number Of
it's stores and puts by sum in the sinking fund
each year to guard against any possible loss
ana also to provide for the purchase Of more
buildings.