CO-OPERA'TION is the term applied to a system of united effort for commercial or industrial purposes. It refers simply to a joint-stock copartnery on ordinary commer cial principles, with limited liability of members; but by the interposition of the legislature for protecting individual interests, and encouraging self-denial and thrift, it possesses some distinct features. Usually, a co-operative society consists of a body, several hundreds in number, belonging to the manual laboring classes, clerks, shop assistants, etc.; the object being the distribution of articles of daily consumption among the members. A store is established under a manager and assistants; goods of the best quality are purchased on favorable terms, and retailed to members at such an advance on cost price as will pay expenses and leave a small profit over. All the sales whatso ever are for ready money; no credit is given. Soundness in the articles bought and comparative cheapness are alone aimed at; and such results are attained by care in the management, and by adhering to the ready-money system. There is little trouble in book-keeping, no loss from giving credit. In point of fact, the customers of the con cern arc their own shop-keepers. carry out any such principle of co-operation with advantage, there must be a large intelligent population, along with mutual trust, and a considerable similarity of tastes.
Membership is constituted by payment of shares. Ordinarily, the share is one pound sterling, to be paid up at once, or by small weekly installments. By 18 and 19 Viet. c. 63, a member can own shares to the amount of £200. The shares are not transferable. unless the rules of the society make them so in whole or part, but in general non-trans ferability is adopted, with power of withdrawal; this constitutes the chief difference between C. and the common joint-stock system of business. The peculiarity of making the shares personal to the holder is most valuable; for by it all stock-jobbing or gambling in shares is prevented. When a member dies, his shares are accounted for to his repre sentatives. If more money is paid in by members than is wanted, the directors can order the overplus to be taken back. The first shilling paid in, and the last shilling at the credit of a member, on drawing out, are carried to a fund called redemption-money, which is designed to make good the deterioration of property. In this and some other
respects, however, societies differ, accerding to the rules established. In some societies, shareholders or members are alone entitled to purchase goods at the stores; in others, the privilege is extended to "friends of members" approved by the association.
By prudent management, numerous co-operative societies in England have reached an extraordinary degree of success. One of the more remarkable is the Rochdale. Equitable Pioneers' 'Society. Beginning in 1844, with a capital of only £28, its affairs, at the end of 1877 stood thus: Number of members, 9,722; amount of funds, £2S0,275; business done in 1877, £311,754; profits in 1877, £51,648. In the proceedings of this society is offered a surprising example of what may be done by C. when properly con ducted. One material cause of the prosperous extension of this undertaking consists in the fact, that members allow their dividends and profits to accumulate to their credit. instead of drawing them out as they accrue, and spending them. Another feature of this society consists in setting aside a part of the profits for the support of an educational department, in which are comprehended a lending library, a reference library, news rooms, and collections of globes, maps, and scientific instruments. Out of the successes of this society sprang several gigantic concerns at Rochdale and elsewhere. The most notable of the London societies is the Civil Service Supply Association, designed for the benefit of others than the poorer classes of the community. It has 4,500 shareholders, and many thousands of members. The wages paid amount to nearly £50,000 a year. The premises which form the headquarters of the association are valued at £32,000. In the first year, 1867, the sales of the association represented a value of £21,322; in the year ending Aug., 1877, the value of the sales reached the large sum of £1,041,294. On an average the prices charged to members and clients are at the rate of 10 per cent above wholesale prices, thus allowing a profit to defray working expenses, which amount to about 7/ per cent. The allowance has proved more than sufficient; between Mar.. 1874, and Aug., 1877, the surplus profit accumulated to the amount of very nearly £100,000. As the aim of the association is " to supply articles at the lowest possible prices," it is proposed to reduce the present high rate of interest.