ROCHDALE AND RIWAKA

Evening Post, Volume CXXV, Issue 69, 23 March 1938, Page 5

ROCHDALE AND RIWAKA

EARLY CO-OPERATION IN N.Z

It is. generally known that the system of co-operative distribution' (consumers' co-operation), which has attained great scope in Britain and elsewhere, began in the Lancashire town of Bochdalc in 1844. It is not so well known that in the very same year an experiment in co-operative trade was tried out in the pioneer settlement of Riwaka, in the Motueka district. The story is told by Hugh Patterson in the latest issue of the "Ne,w Zealand Cooperator."

| In 1844 the New Zealand Company was einploying some of its first settlers on road construction in the Motueka Valley, and their maintenance was a problem on account of the uncertainty of the trips of the boat from Nelson which constituted the only means of communication and source of food supply. The company's Nelson agent, Mr. Fox, afterwards Sir William Fox, suggested to the settlers the advantages to be derived from the establishment of a co-operative store, which would make them independent, to a certain extent, of the precarious visits of the Nelson boat and also enable them to buy at wholesale prices and thus reduce the cost to themselves. Mr. Fox offered to advance to each man employed an amount equal to two months' wages by way of capital to stock the store, I which, he stipulated, must be run on I co-operative lines. The offer was duly 'accepted. By combined labour of the settlers a suitable weatherboard building was quickly erected and stocked with staple articles of consumption. The most likely member of the community was elected manager, and his allotment of roadwork was distributed among his mates so that he could continue to draw his pay and yet devote his time to the running of the store, Thus no direct cost for management was incurred in cash, while Mr. Fox further helped the infant co-operative venture by dispatching the goods across the Bay from Nelson free of charge. Thus the enterprise made an auspicious start.

In a little old book entitled "Colonial Experiences," by "Old Colonist," one of the original shareholders tells what happened to the venture. All apparently went well until the end of the second quarter, when the balance-sheet submitted by the storekeeper-manager showed a deficiency of about £20, for which he could not account. "Old Colonist" was called in to check the accounts and went through all the items, but could find nothing to explain the mysterious discrepancy. A public meeting was called, and some present, says the narrator, in very plain terms impugned the honesty of the storekeeper. A resolution was passed removing him from office and demanding the surrender of the books. Smarting under what he regarded as undeserved suspicions he refused to give up the books unless some independent auditor was appointed. So another resolution was passed appointing a deputation to go to Nelson and inform Mr. Fox of the whole proceedings. The storekeeper decided to make sure of a fair deal and set off, with "Qld Colonist" as mate, to walk overland to Nelson with the books, and, if possible, beat the boat, which was to sail with the deputation next day, but would take some time to get to Nelson under canvas, as this was before the days of steam. The distance overland to Nelson was forty miles, through country only partially explored and with several, rivers to be crossed. The time was July, the season mid-winter, and the journey was accomplished only with great hardship. The. keeper of the precious books and his mate reached Nelson an hour after the boat from Riwaka had berthed. The deputation had already seen Mr. Fox and reported the state of affairs and the refusal of the storekeeper to- hand over the books. Then, to the vast astonishment of the party, the storekeeper, whose departure from Riwaka had been kept secret, arrived on the scene. He delivered the books direct to Mr. Fox with the request that the company's accountant should examine them. To this Mr. Fox agreed. The discrepancy on examination was found to be due, according to the explanation, to an extra charge of 5 per cent, commission imposed by a Nelson merchant on goods supplied. This commission, which had not been taken into account in making up the balance-sheet, was found to cover the deficiency exactly. Mr. Fox was quite satisfied, but not so the deputation, which could not believe in so simple a solution of what appeared to indicate a grave scandal. They believed Mr. Fox had intervened in the interests of peace. In any event the cooperative enterprise was doomed, f&r in September, 1844, news arrived of a suspension of the New Zealand Company's activities, including roading operations. The store was wound up by a general distribution of the stock among the settler-shareholders.