CO-OPERATIVE TOWN

Otago Daily Times, Issue 23707, 14 January 1939, Page 4

CO-OPERATIVE TOWN

NOVELTY IN AMERICA REMARKABLE FEATURES A town to accommodate nearly 1000 families has been built, under the New Deal, to be run on a co-operative basis, at Greenbelt, Maryland US. Work was started in October, 1935. to absorb thousands of unemployed in Baltimore and the district of Columbia. It was completed in September. 1937. at a cost of 14,000,000 dollars. The Government rents the homes and apartments to families whose income is between 1000 and 2000 dollars, and who have not more than. four children. A period of 60 years is allowed for repayment. The record of the first year of occupancy shows the remarkable progress of an idea. The residents have control of stores, business, theatres—everything is co-operatively owned, in the first experiment of the kind in American history.

Acquiring Ownership of Stores

The first stores were opened, in buildings built by the Administration and operated by the Consumer Distribution Corporation, which advanced the necessary funds from a bequest of 1.000,000 dollars by the late Mr Edward Filene. Boston merchant and philanthropist, who founded the organisation. For its services during the first year, the corporation took no profit. The town’s enterprises are now being turned over to the citizens. Ownership of the stores will be acquired through the sale of stock in one co-operative unit, which will manage all Greenbelt’s enterprises. Each share of stock will cost ten dollars, and. although one family may buy as many shares as it likes, each family will be limited to one vote. The stockholders will receive a maximum of 4 per cent, on their investment; all the remaining profits will then be divided among the consumers, strictly in proportion to their purchases. Before full ownership of the stores can be obtained, half the families must invest in the co-operative, to make it effective, under the lease granted to the town. Profits Divided by Children

Housewives meet regularly to study the marketing of meat and vegetables A co-operative health association has been set up. Children buy candy and school supplies in their own co-opera-tive in the school, in which the shares cost 10 cents each. They, too, distribute profits among themselves, in proportion to their purchases. Each family is provided with a 50ft garden plot for its exclusive use. Safety for children is assured by under-passes, below the main street. There is sewerage and garbage disposal, modern plumbing and electricity, including electric cookers, in every home. There are two well-built, modern schools. The system is not without its critics Opponents of co-operative merchandising contend that it stifles independent enterprise, and that unrestricted competition affords lower prices than a co-operative group could set. Other critics wonder if it was worth so much of the country’s money even to build Greenbelt and three similar projects To this the citizens retort that “two Greenbelts could be built for the cosl of one battleship.”