El Paso herald. (El Paso, Tex.) 1901-1931, 1913-03-01
Cooperate To Sell Goods
Distribution OF Merchandise to Con-
sumner Costs Less on Co
operative Plan.
10y Frederic J. HRssSin-
AsHINGTON. y. d. March

AA4 W nile LuG cooperative SUITE
in which a certain number Of
consumers band themselves together
and conduct a retail business of theft
own, selling to themselves at actual
wholesale cost, plus the operating ex-
penSes, has not proved as successful IN
America as in Europe, there are many
OF the stores throughout the country
and in some of the states they are both
numerous and highly successful In
some sections there are so many that
the wholesaler cannot afford to ignore
them, and where they get the cOnces-
siOns that the ordinary retail merchant
enjoys they seem to succeed. and
what's more to the point, in q way
that makes their members feel that
they are saving enough money by the
operation to make the game well worth
the candle.
Right Relationship League
A very large proportion of these
stores have been organized under the
auspices Of the Right Relationship
league Of the United States, a league
OF apostles Of cooperation who are
preaching the gospel of the European
form OF cooperation. This league is 4
member Of the International CO-opera-
i've alliance, under whose banners
march the cooperative organizations
OF the world The league furnishes
speakers on cooperation, cOunseIlors
TO advise merchants and people how TO
proceed, and experienced solicitors and
organizers to assist in the organiza-
ton OF cooperative stores, creamerfes
and elevators. It has an auditing de-
partment which regularly audits me
accounts of those companies employing
IL The league has no capital stock,
but has some 1900 life members
The cooperative stores it has organ
lZed IN Minnesota, Wisconsin, the Da-
kotas and Washington are operated by
associations composed Of 1000 farm
erS, and they are ready to ship their
produce n ct in & 10
cities.
Expense Of CO-Operative store
Inc reports Of various cooperative
companies show something of the cost
OF conducting retail businesses if they
are run on sound principles. In a re-
port showing the relation between to-
TAI sales and salaries made by % CO.
operative stores for the month of OC-
toDer, 1872, the highest selling cost. so
lar as salaries was concerned, was
500 on each 800 worth Of goods sold.
The lowest was 50. and the average
about 50 per hundred II we were TO
take that as the basis of salary ex-
penSe IN the retailing Of the $4,000
100000 worth Of farm products which
the consumer annually buys. il will be
seen that the consumer must annually
pay $65O,OOO, 600 in salaries to the gro
Gerry clerks OF the country. And il is
probable that the salary expense Of the
cooperative store is approximately the
same as that Of the homeopathic
store
Plan Wholesale Cooperation
It is the plan of the people of Mime
sofa to get system of controlling the
prices OF commodities by organizing a
sort OF cooperation between the cOun-
try cooperative store and the one in
the city, as well to form a wholesale
link that viii give the cO-OperatOr all
the advantages of low manufacturing
prices a 100000 corporation 10 Jp-
crate cooperative store in Minneap-
n lie p . n n
St Paul has been organized, and one
with a capital Of $4,000 has been or
gained in Madison, Wis. \ wholesale
SroceH- store and a wholesale dry
goods and shoe store to be run CO.
operatively for the benefit Of retail CO.
operative stores are being planned.
WISCONSIN Recognizes Plan
The development of the cooperative
store has led the state OF Wisconsin to
pass law providing for proper rec
ognition of the cooperative plan, the
first law of its kind in America The
law provides for the Incorporation of
cooperative cncerns. limits the amount
Of stock any one person may hold in
such an association, gives each share
holders a single vote, regardless of
the number Of shares he may hold.
and distributes the profits on the basis
OF the purchases made or the products
sold. The Wisconsin legislature also
created a state board of public affairs,
and one Of the subjects the board is
directed to study is the problem OF
cooperation
Distribution Is Expensive.
The New York state food iuvestigat-
ing commission gives an interesting in
sight into the cost of food, and shows
where great savings may be effected
L places the annual food bill of New
York city at S64z, 900. coo, and says that
10 per cent OF this represents the cost
of distribution. 1t believes that at
least 20 per cent might be saved If
proper distribution methods were IN
vogue. OF the retail value of the food
sold it IS estimated that at least so
per cent represents the expenses and
profits Of the retailer alone It is
interesting to contrast with this the
expense Of selling goods in American
cooperative stores.
Going over long list of cooperative
store reports as to the actual costs of
retailing, one may select at random the
following examples: Alma Centre Co
operative Mercantile company, 1875 per
cent; Badger Cooperative company,
11.2 per cent; Clara City Cooperative
company, 70 per cent; FOsstOn Co
operative company. 1874 per cent A
margin Of about 10 per cent seems to
be about the average that must be
added for selling expenses, and il very
seldom goes about Is per cent. OF
course ii is not fair to the retailer in a
big city to assume that his selling eX-
penSes are no higher than those OF the I
average cooperative store in n small
country town. But even granting that
they are double, this still would indi-
cate a net profit Of 10 per cent on the |
goods sold.
Credit Cause Of Failures
There are many more failures among
cooperative stores in the United States
than there are among those in Europe.
Perhaps the greatest reason for this {
is that the cooperative store usually
runs on a cash basis and the buying I
public wants credit Here is an ac-
count of a failure Of a cooperative /!
store because its members refused to !
pay cash and went TO regular grocer
where they got the ordinary credit
There is an account of another failure i
because the store finally began to 4
carry slips as an evidence of debt. and I
then was forced TO go upon a. full
credit basis. under which il was not 4
able to survive.
Another difficulty that is experienced /
in making the cooperative store a sue
cess lies in the fact that the manager /
frequently is one Of the co-operators.
and has other irons in the fire which
demand the major portion of his at 4
tentiOn- OF course such management Z
is seriously handicapped when il comes /
into competition with a grocer who de- /
votes all his attention to his business !
and who assumes all the risks it in !
wolves. And then the hired manager IL !