The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1891-11-20

CO-OPERATIoN.

Anels Aliiance in twenty-five states of the
Union has united with leading business
men OF New York city and formed a COM
pany similar in its plans of operation to
the celebrated Rochdale system in Eng
land and the Zion cooperative stores of
Utah.
The modern idea of cooperation dates
back to Robert Owen, great cotton spin
ner, who ut New Lanark, England, sue
cessfully conducted scheme Of profit
sharing and improvement for his labor.
Owen was business man of genius, and q
philanthropic socialist who proposed a
complete reorganization of society. He
succeeded in England, came to America,
where he founded socialistic commu-
nifty at New Harmony. Indiana. Owen
succeeded by his personal genius and
philanthropic force at New Lanark, but
his success was akin rather to the indus
trial success of the Pullman, ILL.,, expert
ment near Chicago.
The Rochdale experiment, which is the
model of the proposed Farmers Alliance
cooperative experiment, was founded in
1874; its fundamental principle is the
feeding of cooperation upon its profits
The Equitable Pioneer Cooperative store
was started at Rochdale, England, by a
few weayers with only one hundred and
forty dollars capital. Under this Roch-
dale system each person is limited to one
vote, electing directors by whom the bust
ness IL conducted. Only such goods as are
Of standard quality and in constant de-
mand by the members are bought and sold
to the members for cash at the ruling re-
tail prices. Cash payments are invariably
required and fair prices maintained. A
record 10 kept of purchases, and the profits
are divided quarterly. After setting aside
ncertain sums for interest, depreciation, re-
bsrye and education, the balance of the
profit Is paid as dividend on the amount
bfpurchases. The dividend thus received
~ each member Is placed to his credit
iagainst further shares of the capital stock
until the whole number of shares is made
up to which any one person is entitled.
After such shares have been paid up. the
dividend on purchases is paid in cash at
chs end Of the quarter, or may be left in
the treasury as loan or share capital. Thus
the savings effected are constantly in
vested In the business.
This feeding IL on profits gives co-opera-
zion capital and stability, while affording
. safe and profitable bank for the men,
bsrs' savings. and enables the society to
grow and increase its business and useful
ness. By this plan Of accumulation of
profits and applying them to the develop
ment of the business, the Rochdale Pion-
GERS grew in number. strength and useful
ness. Cooperative stores increased and
multiplied all over England. and the
poorest people were thus able to make and
save. The original Rochdale society es-
tablished the precedent of setting aside 215
per cent. of its net profits for an educa-
tional fund, plan that the most success
full cooperative societies have followed, so
that today they own valuable real estate,
buildings, stores, steamboats,, maintain
lecture courses. reading-rooms, extensive
libraries, classes, etc. Starting in 1874
with % members and $40 capital, the
Equitable Pioneers Society, of Roehdale,
1t the close of 1890 had Ii ,S52 members.
: capital of SSH, 100, and in that year
made profits OF $23s. $40 on total business
of 81. s52, el5. 1t has q branch stores be-
sides the central one. library of 1900
volumes, 10 newsrooms, and numerous
classes In the sciences and industrial arts.
During the last thirty years failures in
cooperative stores in England have been
le.s than in commercial enterprises as
usually conducted. In all there were /, 400
nf these distributiye societies or co-opera-
live stores for retailing family supplies in
,reat Britain at the end of 1850, exclusive
~ the numerous branch stores operated by
many of the societies. Their members
numbered 6s,a54; their share capital was
SIS. $50 sas; their total capital was $780,
esn. total assets, 500, sSs.061
These 400 distributive societies or CO.
orarative stores in 1889 sold goods 70 the
value Of sis5, 6i5.e6o. The operating ex-
,,snses were about 81 per cent. on the
Gales. while the total net profits amounted
70 sl7. 400. Five per cent interest on
total capital invested, education. charity
.na support of central board absorbed
60 or iaa. leaving si4, ie2, S6s as the amount
r,ia in dividends on purchases Of over
s,so 600 COO, or nearly IL per cent; that is
a. saw. the whole !, 400 cooperative stores
-s,u,nea 20 their patrons about IL
rsr cent for every loo cents expended
=, purchases at these stores. Had the
total net profits been applied to capital it
worla have earned over 30 per cent. The
English Wholesale Cooperative Society
"a. orranixed In 1868. It's capital is IN
.hare. of SIS, each local society takes in its
awr name one share for each ten MEM
ser.. paying IS cents on application and
suoving the profits on its purchases to
accumulate until the shares are paid up.
The English wholesale, besides its two
.u,,,nr nranehes at London and Neweas-
~. Ia. sub branches at Leeds and Bristol,
.rs huving branches in various branches
~ The United Kingdom and at New York,
Conenhsren and Hamburg. II conducts
extensive manufactures Of biscuit eoniee'
tionery. soap, boots and shoes Woo'Ien
mill. and tailoring establishments. A
London branch sells over s-,e00,oVo worth