The Co-operative news. [volume] (Everett, Wash.) 1917-1918, 1917-10-25
DIFFER
FROM PRIVATE
ENTERPRISES

How are these thousands of retail
cooperative stores run? In what
way do they differ from capitalistic
enterprises? These are questions Of
vital interest and importance.
Any member of either sex can, at
any time, join cooperative by pur-
chasing, in most societies, $5
share of it's stock. AS a general
rule membership begins just as soon
as the first twenty-five cents of the
SIS is RENTED. The remainder of
the share is usually paid for out of
the dividends which would naturally
accrue to the member from purchases
at the store. The prices charged
to the members for goods purchased
are approximately the same as those
of private merchants. A special eff
fort is made, however, at all times
to sell pure, unadultered goods and
to give full measure. Practically
no credit is extended to the men,
bers of the store-cash transactions
are well nigh universal
At the end of the quarter the sur
plus earned by the society is divided
among the members in proportion to
their purchases. The sums distribut-
ed range for different stores and
periods from $.37 to 1862 on every
SIS worth of goods purchased, or be-
tween per cent and IL per cent
This amount is called the dividend"
This term, however, is somewhat Of
misnomer, and has led to the
constant accusation that the coop
erative differs not at all from a
private venture. But the distinc-
ton is marked. The dividend in
the private firm is paid to an in
active stakeholder on capital loaned
and increases in proportion to the
prosperity of the enterprise. The
dividend" of the cooperative is
paid to a member-purchase in pro-
portion to purchases made. 1t bears
no relation to the amount of shares
owned. In fact the return to share
holders on capital invested is likely
to become less in cooperative stores
in proportion to their increasing
prosperity.
Members may also purchase shares
to the extent of 200 from most of
the co-operatives. An average of
per cent is paid on these shares.
All members are privileged to at
tend the quarterly meetings of the
society and to vote on all issues.
Each member has one vote and one
vote only, irrespective of the num-
Der of shares owned. The member
ship elects the committee of store
management, generally 8 in num-
Der. In most societies employees are
excluded from holding office. Of
ficers must possess certain mini
mum of shares. This democratical-
ly elected committee on management
appoints the store manager and has
charge of the affairs of the society.
The members of the cooperative
stores are overwhelmingly working
class in their character - miners,
weavers, artisans-and the manage
ment committees are also very large
ly composed Of the manual working
class. In many of the suburbs the
professional and clerical groups ex-
ert, however, considerable influ-
ence.
Two devices adopted at the forma-
ton of the cooperative movement,
universally adhered to, have been re-
sponsible, to no small degree, in
keeping the British cooperative
movement a truly democratic re-
public of consumers. The first
device has been the distribution of
dividends according to purchases, not
according to capital invested The
second has been that of one man
one vote.
In private concern, or even in
self-governing workshop, where
surplus is divided according to capt.
tai invested, the inevitable tendency
is to restrict the number of shares
after minimum of capital is OBJ
tained-in order to augment the re-
turn to each shareholder. The
greater the number of shares OBJ
tanned by one individual, moreover,
the greater the control of that in
dividual over the industry, because
the greater is his voting capacity.
In the British co-operatives, how
ever, this condition does not obtain.
The larger the number of members,
the larger the amount of goods pur-
chased and the less the average cost
of distribution. The inevitable re-
suit is the larger dividend to each
Notwithstanding, of course, the
prices remain stationary. This in
creased dividend gives to each mem
Der an inventive to increase the num-
Der of members of the society and to