The modern movement first took practical and permanent form with the formation of the Rochdale Society of Equitable Pioneers in 1844. The founders were 28 Lancashire weavers, nearly all Socialists of the Owen school and Chartists. The original capital was $140, slowly collected by subscription of two pence, and afterward three pence, a week. With this cap ital they opened a store for supplying them selves with provisions; but at first they had only flour, butter, sugar and oatmeal to sell. They limited the interest on shares to 5 per cent, and divided the profits among members in propor tion to their purchases. When it was proposed to take out a license for the sale of tea and coffee the members did not pledge or subscribe amounts, but *promised to find* small amounts ranging from two pence to one pound, and the latter sum was actually the largest offered. A motion was made that members who would not trade with the store be paid off, but those who desired to see co-operation advance under the principle of freedom opposed the motion, and it was withdmwn. At the end of 13 years they had a membership of 1,850, a capital of $75,000 and their annual sales amc,unted to $400,000. This successful society with its organization and methods of conducting business became a model which was followed in many parts of England and abroad. In 1864 a wholesale society with annual sales atnounting to over $200,000,000, with a membership of 1,512,399 and a capital of nearly $330,000,000 was established at Man chester, and in 1869 a second at Glasgow. They work in harmony and are practically one institu tion. The wholesale society is a federation of retail societies for the supply of goods to the various societies composing it, with purchasing and forwarding depots in England, the United States and on the Continent. It owns eigla steamships. It has extensive productive works, boot and shoe factories, woolen cloth works, corn mills, etc. There is also a co-operative fire and life insurance society. Since the incep tion of the co-operative stores in Great Britain a business of $4,500,000,000 has been transacted and $360,000,000 in dividends paid to their mem bers. The Woolwich Society is an organization of 10,000 men and women. They own six stores, the finest bakery in London, farms, stables, tailor shops, boot and shoe works, etc. One of the most notable examples of that kind of co-operation that includes profit-sharing is the South Metropolitan Gas Company, whose receipts are shared with 3,000 employees. The Leeds Co-operative Store is perhaps the most famous single experiment. It is evident that probably 1,000/000 families, or a sixth of the whole population of England, have their wants in whole or in part supplied by co-operative stores.
Building and loan associations (q.v.) are purely co-operative organizations, and existed in form in England as early as the latter part of the 18th century. The date generally as signed for their beginnings in that country is 1836, for in that year Parliarnent adopted an act for their regulation. The Friendly societies are co-operative in reality, though not in name. In 1827 the first English paper for the propaganda of co-operation was established, entitled the Brighton Co-operator. In 1871 the Co-operative News was established as the organ of the societies. Since 1869 annual congresses of co operative societies have been held throughout England. The Congress of 1902 had 1,100 dele gates, with reports for 1901 from 1,604 societies, ring a membership of 1,919,555; a gain of 7,291,000 in shares, $2,574,474 in profits and 614,124 in investments. Nearly $45,000,000 was distributed to members during the year as cash dividends. The number of societies in
1912 was 1,557, with a membership of 2,661,799; the aggregate trade transacted $557,913,895, with profits of $60,122,405. In the Australian colo nies co-operation has made a marked advance. There are many Friendly societies there. In 1873 the Co-operative Union was consolidated, with a regular constitution. It is governed by a board of 12 members, representing the six sections into which the union is divided. There were 48 additional societies not reporting. The movement for co-operation in Ireland has lately shown a decided progress. There are in the island 232 co-operative dairy or creamery so cieties, 101 agricultural societies, 52 co-operative banks and 39 other organizations; total mem bership 40,000. Although in Great Britain co operation has succeeded best in the form of distribution, that is, in co-operative stores for supplying the domestic wants of the workinan's family, in continental Europe other phases of the movement have been more prominent.
In France co-operation began with the Revo lution, and that nation is one of the few in which the state has stepped in to aid associative ventures of this kind. Building contracts have been awarded co-operative industries by the g.overnment, and M. Waldeck-Rousseau's lcnown friendliness to the principle has awalcened en couragement among the members of the various societies. Co-operation in different modes of agriculture has achieved some success in France. In 1900 there were 2,500 co-operative societies, 1,489 being devoted to distribution. Two hun dred and fifty workshops are operated according to this principle. Paris has a very large and successful society. In Germany and Italy the co-operative idea has led to the formation of many people's banks, furnishing mutual credit to worlanen and also small tradesmen. The People's Banks in Germany were founded by Schulze-Delitzsch, the probable date being 1851, Schulze-Delitzsch traveling through Germany, addressing large audiences and explaining his plan. He encountered the most determined opposition. Bismarck obstructed the move ment. Yet these credit loan institutions spread, and Germany to-day possesses thou sands of them. Schulze-Delitzsch himself organized 3,000. There are many through out Europe. These banks charged in the beginning a high rate of interest — 12 to 14 per cent — though it has since become much lower, and only short-time loans are permitted. The members of most of these credit loan insti tutions hold but one share, the price of whidi is placed high, and this is paid in small instal tnents, the object being to encourage the inclina tion to save. While these banks or loan associa tions put the lender's interest foremost, Raiffeisen, another German, organized a co operative bank in 1849 which placed the bor rower's interest as the keystone of his system. The total menibership of co-operative societies in Germany is about 2,000,000. Productive so cieties to the number of 255 are engaged in a large variety of industries. There are 1,527 societies engaged in distribution. The spread of the co-operative idea has been especially remarkable in Switzerland and Denmark. In Switzerland in 1897 there were 2,Z1.3 co-opera tive societies, 838 of which were co-operative dairies. These had grown in 1900 to 3,400 societies, 1,400 being dairies. There were 370 organizations for distribution. One-sixth of the population are co-operators. In Denmark there are 837 distributing societies and 1,052 co-opera tive dairies producing an annual output of butter worth $34,000,000.