In calculating prices the committee deem it necessary to act so as to be on the safe side in case of any error that might arise. On an average, the prices charged to members are at the rate of ten per cent. above the wholesale prices, thus allowing a profit to defray working expenses, which are about seven and a half per cent. This allowance has always proved a generous one, for besides covering the annual expenditure, there has always been an important surplus.
For some years this surplus was allowed to accumulate, it being thought that it might probably prove useful as a reserve fund; but when it reached the large sum of nearly one hundred thousand pounds, it was plainly apparent that steps should be taken to dispose of it and all future surpluses. As concerned the foregoing sum, the rules of the society according to the act of parliament under which the Association is incorporated, rendered appropriation of it in any way impossible; it was therefore set apart as a reserve fund, invested in the buildings, stock, &c. of the Association; but a new set of rules was formed by which all profits accruing thereafter were to be divided amongst the shareholding body, and placed annually to the credit of each, to be, however, only withdrawable by their relicts after death, or when the accumulations on any share shall amount to one hundred and seventy-five pounds, when, in order to comply with the provisions of the Provident Societies Act, which limits the funds any member may have in a society enrolled under its provisions to two hundred pounds, the excess must be withdrawn. This arrangement, which was duly legalised, and came into force in March 1874, naturally gave the shares a far greater value than they had hitherto possessed, as will be seen from the fact, that from the date mentioned to August last there has accrued very nearly one hundred thousand pounds. If the profits continue at this rate, the shares will of course increase in value each year, and already—since recent alterations in the rules have made them transferable and saleable—shares have been disposed of for sums varying from twenty to thirty pounds each; hardly a bad investment, comparatively speaking, for the sellers, to whom they cost but ten shillings, the rate of interest being eleven hundred per cent. per annum! This large profit is, however, considered by many to be a really objectionable feature, and at variance with the principles of the Association, namely, ‘to supply articles at the lowest possible price.’ We believe this view is entertained by the Committee of Management, who are about to take steps to have the high rate of interest reduced.
Seeing that a large annual profit accrues to the Association, and causes an embarrassment, the inquiry naturally arises—why not lower the prices of articles so as to leave no profit whatever? There are various reasons, as we understand, why prices cannot be lowered beyond an assigned limit. The profit on small quantities of articles is, as has already been stated, so infinitesimally meagre as to admit of no sensible reduction. And in many cases it is important not to make such reductions as would trench on the business of wholesale dealers; there being, indeed, an apprehension that customers might purchase articles not for their own use, but to sell at some advance to retailers and others. After all, the profits arise more from the average gain than from a charge on the respective articles.
It was to be anticipated that retail dealers would be bitterly antagonistic to the Civil Service Supply Association; and so steady and sturdy was their opposition, that in its first years the Association experienced considerable difficulty in persuading wholesale houses to deal with it. Indeed large orders were the only inducement by which these houses could be got to supply the goods required, and even now we believe some firms hang back. The transactions of the Association have, however, operated upon members of the retail trade, who finding their business affected, have in self-defence been forced to reduce their prices to the general public. It thus becomes apparent that the Civil Service and other kindred co-operative associations have directly benefited the masses, by inducing a general lowering of the cost of many articles of daily necessity.
As an instance of the difficulties and jealousies which have from time to time beset this beneficent institution, the committee for a long time found it difficult to get and retain good tailors, who as a rule disappeared in a mysterious manner. These difficulties have, however, with patience and perseverance, been overcome, and the tailoring branch has become very successful.
It may here be mentioned that all goods purchased at the stores must be described in the form of an order, which has to be examined and checked, and payment always made to properly constituted cashiers (never over the counter), before the receipt of the goods. Large orders undergo a thorough and strict examination, to see that the goods are for the legitimate use of the applicant member or shareholder, with the view of defeating any improper interference from retail dealers.
In its present successful condition, to which the Civil Service Association has so rapidly attained—the clear assets amounting in August 1877 to one hundred and ninety thousand pounds, after all liabilities had been paid—there are few things which cannot be obtained at or through the medium of the stores. It were a futile task to attempt even an approximate estimate of the goods that may be bought in this manner; suffice it to say that each and all are duly chronicled in the Association’s Price List. This list, which is issued once every quarter, is no bad criterion of the success of the institution. When it was first issued, the contents covered no more than a small single sheet; now, however, it is a thick book of nearly three hundred pages. It is not only a record of all goods sold at the stores, but also contains the names and addresses of the various firms which have entered into arrangements with the society for selling their goods to members at a discount varying from five to twenty-five per cent.; and besides, a large portion of the volume is occupied with advertisements, which doubtless form no inconsiderable source of profit to the Civil Service Supply Association.