CO-OPERATION PROPOSALS.

Evening Post, Volume XCV, Issue 23, 26 January 1918, Page 11

CO-OPERATION PROPOSALS.

Recent advices from England have referred to the possibility of broadening the basis of the Labour Party by theinolusion of co-operative societies, both producing and distributing, since it is recognised that these are working along lines in accordance with Labour ideals. In New. Zealand we have a measure of co-operation in the farmers' societies, but the only true co-operation, as Labour interprets the term, is.in distribution, and that is not extensive. Therefore it is interesting to read tho proposals of the Cpunoil of New Zealand ■ State Servants (embodying railways, post and telegraph, teachers, and pubho service) for,a big cooperative venture. At the last meeting of the council the sub-epmmittoe dealing witfc this question reported tho receipt of information from the British Co-operative Union, andithe.adoption of the following definition of "co-operation" as applied to trading:—-'.'The ownership of the sources of supply and tho means of distribution of the goods required by shareholders and the return to tho shareholder purchaser (in proportion to his purchases) of tho difference between the expenses incurred and the" amount charged for the goods bought." The subcommittee further reported :—"(1) That the broad principles of co-operation as laid down by the co-operative societies in England and Scotland can be adopted as the basis for the co-operative society contemplated by this Grand Council with reasonable prospects of success. (2) That as a commencement the Grand Council proceed to set up co-operative stores in each of the four centres, such stores to commence business by handling groceries and dairy and other farm produce and to,,extend operations, as experience proves desirable. (3) .That the standard set of rules supplied by the Co-operative Union, Limited, Manchester, be. placed in the hands of a competent solicitor for revision and amendment to bring them into accord with the Companies Act a-nd other New Zealand laws."-

As a basis for discussion, the sub-com-mittee submitted cert&in remarks of which the following is a summary: — Capital to commence in each centre £50,000, divided into shares of . £2 each, payable in instalments, with a, minimum holding b£ two ajid o, maximum of ten; that trading be carried on. on current business lines and withcash purchase and sale, and'■ - reasonable profits be charged on all transactions; profits to be divided as follows: —Interest on shares at a rato not exceeding 5 per cent, per annum and a discount to shareholders on their purchases during the half-yeat; the interest and discount to bo applied as bonus duo on shares until all shares held by shareholders are fully paid; that the Tight to hold shaires bo not limited to State servants; that provision be made for the society entering into tho farming and manufacturing business Bccessary to supply the needs of its own stores; the store of each centre to bo a. 'separate identity for .allocation of pro6tsand the purpose of management, but to ally iteelf to the stores in other centres for the wholesale purchase of goods; that the movement be gradually extended to smaller centres; that when possible (keeping in view the necessity for regularity of supplies) the stores purchase direct from the manufacturer or the producer. The British Co-operative Union wrote:—-"Ac regards your desire to purchase goods from tho Wholesale Society, we have no doubt this could bo arranged -when your society is registered, but they would not entertain the question of trnding with you until you become a registered body." The council resolved: "That the rules of the Manchester .Co-operative Society bo submitted to a solicitor approved by the council in order that they may be brought into conformity with New Zealand laws; that on revision of tho Tules the Co-ope-rative Stores Sub-committee draw up a prospectus to be submitted to the council for. approval." .