That this is not an impracticable scheme, is capable of being easily proved. The practice of co-operation has long been adopted by workpeople throughout England. A large proportion of the fishery industry has been conducted on that principle for hundreds of years. Fishermen join in building, rigging, and manning a boat; the proceeds of the fish they catch at sea is divided amongst them—so much to the boat, so much to the fishermen. The company of oyster-dredgers of Whitstable "has existed time out of mind,"[2] though it was only in 1793 that they were incorporated by Act of Parliament. The tin-miners of Cornwall have also acted on the same principle. They have mined, washed, and sold the tin, dividing the proceeds among themselves in certain proportions,—most probably from the time that the Phoenicians carried away the produce to their ports in the Mediterranean.
[Footnote 2: Reports on the Paris Universal Exhibition, 1867, vol. vi., p. 252.]
In our own time, co-operation has been practised to a considerable extent. In 1795, the Hull Anti-Mill Industrial Society was founded. The reasons for its association are explained in the petition addressed to the Mayor and Aldermen of Hull by the first members of the society. The petition begins thus: "We, the poor inhabitants of the said town, have lately experienced much trouble and sorrow in ourselves and families, on the occasion of the exorbitant price of flour; and though the price is much reduced at present, yet we judge it needful to take every precaution to preserve ourselves from the invasions of covetous and merciless men in future." They accordingly entered into a subscription to build a mill, in order to supply themselves with flour. The corporation granted their petition, and supported them by liberal donations. The mill was built, and exists to this day. It now consists of more than four thousand members, each holding a share of twenty-five shillings. The members belong principally to the labouring classes. The millers endeavoured by action at law to put down the society, but the attempt was successfully resisted. The society manufactures flour, and sells it to the members at market price, dividing the profits annually amongst the shareholders, according to the quantity consumed in each member's family. The society has proved eminently remunerative.
Many years passed before the example of the "poor inhabitants" of Hull was followed. It was only in 1847 that the co-operators of Leeds purchased a flour-mill, and in 1850 that those of Rochdale did the same; since which time they have manufactured flour for the benefit of their members. The corn-millers of Leeds attempted to undersell the Leeds Industrial Society. They soon failed, and the price of flour was permanently reduced. The Leeds mill does business amounting to more than a hundred thousand pounds yearly; its capital amounts to twenty-two thousand pounds; and it paid more than eight thousand pounds of profits and bonuses to its three thousand six hundred members in 1866, besides supplying them with flour of the best quality. The Rochdale District Co-operative Corn-mill Society has also been eminently successful. It supplies flour to consumers residing within a radius of about fifteen miles round Rochdale[1]. It also supplies flour to sixty-two co-operative societies, numbering over twelve thousand members. Its business in 1866 amounted to two hundred and twenty-four thousand pounds, and its profits to over eighteen thousand pounds.
[Footnote 1: Its history is given in the Reports above referred to, p. 269.]
The Rochdale Corn-mill grew out of the Rochdale Equitable Pioneers Society, which formed an epoch in the history of industrial co-operative institutions. The Equitable Pioneers Society was established in the year 1844, at a time when trade was in a very bad condition, and working people generally were heartless and hopeless as to their future state. Some twenty-eight or thirty men, mostly flannel weavers, met and formed themselves into a society for the purpose of economizing their hard-won earnings. It is pretty well known that working-men generally pay at least ten per cent. more for the articles they consume, than they need to do under a sounder system. Professor Fawcett estimates their loss at nearer twenty per cent. than ten per cent. At all events, these working-men wished to save this amount of profit, which before went into the pockets of the distributers of the necessaries,—in other words, into the pockets of the shopkeepers.
The weekly subscription was twopence each; and when about fifty-two calls of twopence each had been made, they found that they were able to buy a sack of oatmeal, which they distributed at cost-price amongst the members of the society. The number of members grew, and the subscriptions so increased, that the society was enabled to buy tea, sugar, and other articles, and distribute them amongst the members at cost-price. They superseded the shopkeepers, and became their own tradesmen. They insisted from the first on payments in cash. No credit was given.
The society grew. It established a store for the sale of food, firing, clothes, and other necessaries. In a few years the members set on foot the Co-operative Corn-mill. They increased the capital by the issue of one-pound shares, and began to make and sell clothes and shoes. They also sold drapery. But the principal trade consisted in the purchase and sale of provisions—butchers' meat, groceries, flour, and such-like. Notwithstanding the great distress during the period of the cotton famine, the society continued to prosper. From the first, it set apart a portion of its funds for educational purposes, and established a news-room, and a library, which now contains over six thousand volumes.
The society continued to increase until it possessed eleven branches for the sale of goods and stores in or near Rochdale, besides the original office in Toad Lane. At the end of 1866, it had 6,246 members, and a capital of £99,908. Its income for goods sold and cash received during the year was £249,122; and the gross profit £31,931.
But this was not all. Two and a half per cent. was appropriated from the net profits to support the news-rooms and library; and there are now eleven news and reading rooms at different places in or near the town where the society carries on its business; the sum devoted to this object amounting to over seven hundred pounds per annum. The members play at chess and draughts, and use the stereoscopic views, microscopes, and telescopes placed in the libraries. No special arrangements have been made to promote temperance; but the news-rooms and library exercise a powerful and beneficial influence in promoting sobriety. It has been said that the society has done more to remove drunkenness from Rochdale than all that the advocates of temperance have been able to effect.