Perth Amboy evening news., 1918-04-06
MANUFACTURERS ORGANIZE A
COOPERATIVE STORES ASSN


the various industries in this vicinity
the benefit of the lowest possible
prices in food products and at the
same time be fair to the merchants
of the city, there has just been organ
lied here Merchants and Manufac-
turers Cooperative Stores Association
The object of this association is TO
establish maximum prices on the
principle food staples and to make il
possible for the employe to get the
advantage of five per cent. discount
which company stores usually allow
their own employees, and which is
also granted for cash.
The idea is the manufacturers who
belong to this association will issue
coupons to their employees and these
coupons will be accepted as cash al
stores that are members of the asSo-
citation. The merchants will redeem
the coupons through the Board OF
Trade under whose auspices the aSSo-
citation has been formed.
The organization was formed as q
result of Il movement started by one
of the large Industries in establishing
store for its own employees. While
merchandise IS also sold to the gener-
al public at this store, five per cent.
discount is allowed to employees of
the company. The reason given for
the starting of this store was that
certain small merchants selling prin-
cipally on credit overcharged the en-
ployes of this industry.
At the time this store was estab-
lishcd the employees of some Of the
other large industries petitioned their
employers TO have similar stores
started The directors OF the Perth
Amboy Board Of Trade, realizing that
q movement of this kind carried out
by q number of local manufacturers
1t.-ls t-y1t 81 l.
ness interests of Perth Amboy, ap-
pointed committee to see what steps
could be taken to prevent further de-
Yelopment OF the company store plan,
and at the same time do justice to
the employc.
An investigation was made of prices
charged by local merchants more es-
pecially in the grocery and meat bust
ness and It was found that generally
speaking. the prices were lower In
Perth Amboy than in other Industrial
cities, but that many Of the smaller
stores were selling on the credit plan
with attendant losses and the neces-
sity of charging higher prices fol-
goods; also that in isolated cases
small merchants were oNercharSlnI
their customers,
The committee had in mind from
the first, so far as possible, to elimi-
nate the necessity for buying on credit
and the delivery of goods by mer-
chants. The manufacturers were
asked to delay any plans that they
might have for starting other com
pany stores until such time as the
Committee could work out a substi-
tute plan that would be fair to both
the merchants and the factory men.
After numerous conferences, be-
tween the Board of Trade committee
with the manufacturers and grocers
and butchers, plan was evolved
whereby certain manufacturers and
merchants would form a cooperative
association; the manufacturers to Is
sue to their employees coupons to be
used In lieu of cash at the stores OF
merchant NJ enbers of the association
employees to purchase said coupons at
a five per cent discount from face
value, the cost of said coupon books
to be deducted from the pay OF EN-
ployes. The merchants in turn, IS To
cash In their coupons with the man
ufacturers through the Board of
Trade, less five per cent.
An arbitration committee Is to be
appointed consisting of one represen-
tative of the merchants. one manufac-
turer and an Independent party. 1t
will be the duty of this committee to
fix maximum prices for approxim ate
ly ten food staples, said prices to be
fixed once q week and posted on bull
letin boards in the different factories
Of members. This committee will also
have power to fine or expel mem mbers
not observing the constitution and by
laws of the association.
Merchant members are allowed to
make a special charge for delivery OF
goods purchased under the proposed
scale of prices, and il is understood
that the prices fixed must carry a rea-
sonable profit for the merchant mem
ber conducting his store in an efficient
manner.
1t is hoped that the Issuing OF
will eliminate any necessity for buy
ing on credit.
The following are the constitution
and bylaws of the association:
BYLAWS.
Article I.
Section I. Issuance of coupons
This association shall issue through
the Perth Amboy Board of Trade cash
coupons in denominations of five
cents (5c), ten cents C0c) and TWEEN
ty-fve cents (25c). Said coupons to
be bound in books of two sizes one
containing five dollars ($5.000) worth
the other containing ten dollars
($10.o0) worth.
lection 2. Said coupon books shall
be sold to the manufacturers FOR
cash at ninety-five per cent (95 pei
cent) of their face value in any guam
titty ard at any time during the pc
Rod In which these regulations are in
effect
Section 8. The manufacturers, ir
considera ton of the acceptance OF
said coupons by Merchants as cash
agree to sell said coupons to thoil
employees at ninety five per cent (9t
per cent) of their face value at or ir
advance of the time when their wages
Are due and to deduct this amoun
from the wages when paid.
Section a. The merchants agree t,
hccept these coupons for merchan
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