"The Association drew up and prepared a charter or act of incorporation upon which they agreed, and applied to the Legislature for its passage; which was granted; and thus they became a body corporate and politic, known in the land as the 'Wisconsin Phalanx.' All the business was done in accordance with and under this charter, until the property was divided and the whole affair closed up. One clause in the charter prohibited the sale of the land. This was subsequently altered at the society's request, in an amendatory act in the session of 1849-50, for the purpose of allowing them to divide their property.
"In the spring of 1845, after their organization under the charter, they had considerable accession to their numbers, and might have had greater; but were very careful about admitting new members, and erred very much in making a property qualification. About this time (1845) a question of policy arose among the members, the decision of which is supposed by many good judges to have been the principal cause of the ultimate division and dissolution; it was, whether the dwellings should be built in unitary blocks adapted to a common boarding-house, or in isolated style, adapted to the separate family and single living. It was decided by a small majority to pursue the unitary plan, and this policy was persisted in until there was a division of property. Whether this was the cause of failure or not, it induced many of the best members to leave; and although it might have been the true policy under other circumstances and for other persons, in this case it was evidently wrong, for the members were not socially developed sufficiently to maintain such close relations. Notwithstanding this, they continued to increase slowly, rejecting many more applicants than they admitted; and often rejecting the better and admitting the worse, because the worse had the property qualifications. In this way they increased to the maximum of thirty-three families. They had no pecuniary difficulties, for they kept mostly out of debt.
"It was a great reading Community; often averaging as many as five or six regular newspapers to a family, and these constantly exchanging with each other. They were not religious, but mostly rather skeptical, except a few elderly orthodox persons. [This hardly agrees with the statement and protest on the 436th page.]
"They were very industrious, and had many discussions and warm arguments about work, manners, progress, etc.; but still they continued to work and scold, and scold and work, with much energy, and to much effect. They raised one season ten thousand bushels of wheat, and much other grain; had about seven hundred acres under cultivation; but committed a great error in cultivating four hundred acres on the school lands adjoining their own, because it lay a little better for a large field. They had subsequently to remove their fences and leave that land, for they did not wish to buy it.
"Their charter elections were annual, and were often warmly contested, and turned mainly on the question of unitary or isolated households; but they never went beyond words in their contentions.
"They were all temperance men and women: no ardent spirits were kept or sold for the first four years in the township, and never on the domain, while it was held as joint-stock.
"Their system of labor and pay was somewhat complicated, and never could be satisfactorily arranged. The farmers and mechanics were always jealous of each other, and could not be brought to feel near enough to work on and divide the profits at the end of the year; but as they ever hoped to get over this difficulty, they said but very little about it. In their system of labor they formed groups for each kind of work; each group, when consisting of three or more, choosing its own foreman, who kept the account of the time worked by each member, and reported weekly to a meeting of all the members, which regulated the average; and then the Secretary copied it; and at the end of the fiscal year each person drew, on his labor account, his proportion of the three-fourths of the increase and products which was allotted to labor, and on his stock shares, his proportion of the one-fourth that was divided to stock. The amount so divided was ascertained by an annual appraisal of all the property, thus ascertaining the rise or increase in value, as well as the product of labor. The dividend to capital was, however, usually considered too large and disproportionate.
"The books and accounts were accurately kept by the Secretary, and most of the individual transactions passed through this form, thus leaving all accounts in the hands of a disinterested person, open to inspection at all times, and bringing about an annual settlement which avoided many difficulties incident to civilization.
"The table of the Community, when kept as a public boarding-house, where the families and visitors or travelers were mostly seated, was set with plain but substantial food, much like the tables of farmers in newly settled agricultural States; but it often incurred the ridicule of loafers and epicures, who travel much and fare better with strangers than at home.
"They had among their number a few men of leading intellect who always doubted the success of the experiment, and hence determined to accumulate property individually by any and every means called fair in competitive society. These would occasionally gain some important positions in the society, and representing it in part at home and abroad, caused much trouble. By some they were accounted the principal cause of the final failure.