River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1902-04-10
STORE RUN BY WORKMEN.
Success of n Cooperative business
Concern i'm a Pennsylvania
Mining Village.

An interesting experiment IN CO.
operative storekeeping has been car
ried on for some years at the little
mining town of Banksville, Pa. Fiji
teen years ago so miners who were
dissatisfied with the prices charged
at the company store, determined to
set up a cooperative store of their
own. Some of them were English
men acquainted with the Rochedale
system of cooperation, and 1T was
the success of that system that led
to the experiment at Banksyille, says
the New York Sun.
The par value of permanent stock
was fixed at ten dollars a share, OF
ordinary stock at five dollars
share. Each stockholer paid into the
| association ten dollars or more,
which was invested in ordinary mer-
chandise such as was sold at the
company store.
The stockholders elected from
their own number a store manager
and a clerk. There were presl-
dent, vice president and board
of eight directors of the associa-
ton. The manager of the store was
at all times subject to the instruc-
tions of the directors.
For three years the association
led struggling existence, an object
of dislike to the mine owners, who
owned also the company store. At
the end of that time the store quit
business.
In 1896 the cooperative association
was revived. Most of the old stock
meeting, and this meeting appoint
ed a committee to obtain new stock
holders.
New stockholders were easily OBJ
tanned and the store was reestab-
lished. At first the store was kept
in a rented house, but later the as
ISOLATION built a storehouse on it's
own lot, one of the best-situated for
business in the village. The associa-
ton also bought other lots and
houses, the latter for storage.
In making these changes the as
ISOLATION also determined to sell its
goods for cash. That is, credit was
no longer allowed on permanent
stock, though it was continued on
the ordinary stock.
This change was at first unpopular
in the community, long credit-hard
ened by the company store system,
and for time the trade dropped
off. This loss, however, was only
temporary, and the store was speed
lily more prosperous than ever.
Perhaps the best evidence of the
improvement wrought by the cash
system was the increase in dividends
brought about by it. The annual
dividends under the credit system
had been about five per cent, but
under the cash system they doubled
and reached even 12 per cent. on all
| goods purchased. The increased div
idends attracted back the deserters,
and brought trade from neighboring
communities.
The last quarterly report of the
association shows 211 stockholders.
For the past five years the store has
done a business of about $4,000 an
nually, and each month shows in
creased business. The last quarter
1y report showed business for the
quarter of more than $4,000.
The association now owns the best
business lots in the village. 1t has
large store room, besides stables
| and warehouse. For time the as
| ISOLATION did q general hauling bust
| ness, but the demands upon it's
teams for the delivery OF merchan-
Il - 10 <
necessary to discontinue this branch
of it's activities.
Many of the stockholders have
from $50 to 500 drawing interest in
the associations hands, and the asso-
citation actually has more money
than it can advantageously use in its
business. The surplus for the last
| quarter was nearly $1,000, and the
last annual dividend was IL per cent.
For money of the stockholders held
on deposit the association pays five
per cent.
One very important influence of
the association has been the lesson
| it has taught of the moral and finan-
cial value of cash buying. Wherever
| the company stores have existed the
crcdit-hardening process has reached
the greater part of the community,
with the result that many persons
are constantly in debt and few save
anything out OF their earnings.
Nearly all the people of Banks
vile who are not thoroughly credit
hardened deal with the cooperative
store, and it has many customers
from other communities near at
hand.