Henderson daily dispatch., 1937-11-05
Thinks Customers Should
. Own Stock in Big Stores
(ConIlnrou from rage One.)

They advertise goods at "threepence"
and "sixpence" (six and twelve cents
in our money!. When Woolworth
started in England, American invest
tors were fearful that they could not
compete with the great cooperative
stores of Great Britain.
| In fact, during recent years, along
with many others, have been afraid
| that the "co-ops" would become big
factor in the United States and Can
ada and perhaps bring about revolu-
tionary changes in our existing mer-
methods. That is one rea-
son why the stocks of American chain
store systems are now selling so low.
Since studying the English system,
however, I have changed my opinion
to some extent and readers will be
| interested in my reactions.
How The Scoops" Work
The cooperative stores started in a
/ very humble way at Rochdale, Eng
land, in 1874. Their growth has been
gradual but continuous. They now
operate over 100000 shops. They have
a tremendous wholesale business and
1853 factories, bakeries and diaries.
They even own foreign plantations.
! They have 100000 employees. Their
gross business is running much over
Sl,00C,OOC,0O0 per year. They have
nearly 100000 members, whose aver
age yearly purchase of goods is $780,
! They have share capital of about
| 500, 100000 and loan capital of about
| 5000, 100000. They are in fine finan-
/ cial condition
These English cooperative stores
| should be compared with department
stores in the United States and Can
| ada. The "co-ops' are not merely gro
Gerry and meat chains. They handle
all manner of goods. They are more
like our Sears-Roebuck type of store
! Yet, while these co-operatives have
been making such tremendous head
way, The chains and the independent
| stores of England have also been flour
ishing. Actually, the scoops" may not
have increased their proportion of the
total merchandise sold in Great Bri-
tain during the past ten years!
| Co-Operatives' Greed
The co-operatives work on the fol-
lowing principles:
( 1. Their prices are competitive. They
! sell to every one-to nor-members as
; well as to members
| 2. You join by buying one share of
! stock (par $500. Then you are en-
titled to a discount on your total pur-
| chases at the end of the year. This
discount varies from year-to-year &C
| cording to the net earnings of the So
ciety to which you belong. In prac-
| tice, it has averaged about percent.
If you spend $1,000 during the year,
| you get back dividend" of $50.
| 8. You are offered additional
| Shares from, SIS 90 to $1,000 as: time
goes on. The shares can be purchas-
| ed only by actual customers. Each
| shareholder has one vote irrespective
! of the amount of stock held. The
stock used to pay 5 per cent dividend
but now pays only 3-4 percent.
| 4. You are offered debentures up
to a small limited amount, but only
( in the society where you trade. These
| loans carry no vote and now pay 3 IL
I percent.
| 5. You are supposed to buy mer-
| chandise only for cash. However, if
you are a stakeholder, you can run up
a credit to the amount of your stock
6. The cooperative movement has
very good civic influence and car
ries almost religious appeal. To this
| extent, it is far better for commune
| ties than are our chain stores! The
| churches should endure the co-opera-
| tive movement.
BulliSh on American Chains
Despite the praise showered upon
cooperative societies, readers can see
| that they offer little to investors or
consumers which cannot be matched
| by existing privately-operated stores
| in North, America. Certainly, our
chain store shares give investors a
| better yield. The prices charged con
sumers by some of our chains should
average five percent less than the CO.
operative prices, thus offsetting the
/ discount given by the societies. AS a
matter of fact, after having heard so
much about the English co-operatives
! in the last few years, I was surprised
| 70 find so many independent stores
| over here. .
Certainly, if the co-operatives offer
consumers such tremendous advant-
ages, these independent merchants OF
England would not be SO numerous
\ and prosperous as they are today.
= IOul q COIlpoIlClVO P11SO oCoAAN POA1A''
| our independent stores and chains
| have nothing to fear from the CO. ope-
] rative movement. If, however, there
I is to be a differential as to taxes
| or other considerations, that is horse
| of another color If this connection,
| the co-operatives have an edge in pub
lie relations. They develop a strong
local sympathy and loyalty, while our
| chains have. in the past at least tend
| ed to develop local animosity and dis
| trust That is why believe some
| method of customer ownership would
help our chain and department store
merchants.
Tracing English History
Historians were interested in dis
/ coveries made during the excavating
| for this new Woolworth chain store
! here in Winchester. While digging
the cellar for this new building, the
! construction workers came in turn to
five separate and district periods in
English history. The first six feet
yielded English relics covering 700
| [Ouick