It is significant to note that not a single industrial coöperative society in Great Britain has been launched with any of the advantages possessed by private concerns. They have been organized, financed, and managed by workingmen. Their organizations are not distinguished by any remarkable systems or novel methods, and it would be difficult to find the more modern appliances in use in many of them, yet they grow into huge, profitmaking enterprises, often in competition with well-organized, efficiently managed private concerns possessing ample capital.

Situated on the eastern borders of Greater London is the town of Woolwich; its prosperity is dependent on the great arsenal situated there, which employs from eight to sixteen thousand men, according to whether the British army is on a peace or a war footing.

Early in November, 1868, a meeting was held at Woolwich, the outcome of workshop discussions by cooperative enthusiasts, which twenty-seven workingmen attended. They decided to form a coöperative society on the lines of the pioneer society at Rochdale, and organized the Royal Arsenal Supply Association, now the Royal Arsenal Coöperative Society. The amount of each member's share was limited to $5. Twenty members paid subscriptions which totaled less than $25. Further subscriptions were received during the following week which brought this small capital up to nearly $40, and on this a start was made. The first purchase was a chest of tea, and was followed by purchases of butter and sugar. A small workshop in the house of the secretary was the first store. The bench, covered with American cloth, served as a counter, and the bed of the lathe as a desk for the secretary and treasurer. All services were given gratuitously, and the members of the committee acted both as

buyers and salesmen. The "store" opened for business on Saturday evenings only.

At the end of the first quarter the capital had increased to $100, the number of members to forty-seven, and the total trade for the term had been slightly over $300. The "store" was then transferred to two small rooms, and by the end of the third quarter the society had accumulated profits to the extent of nearly seventy dollars.

Four years later the first store was opened for the sale of groceries and dry goods. For the first half-year it was opened only on four evenings a week and on Saturday afternoons; but the increase of business made it imperative that it should be opened daily.

As a consequence a regular salesman was engaged, his appointment dating from July 15, 1873, four and a half years after the society's organization. From such small beginnings has grown a business which at the end of the year 1907 had a total membership of 26,935, a capital of $1,500,000, and sales amounting to over $2,500,000.

Not until 1878, in which year the sales of the society reached the total of $125,000, were any salaries paid to officials; up to this time the whole of the secretarial work had been performed by one of the members, who was an employee at the Arsenal, and who occupied his evenings with the work of the society. At this time, however, he was persuaded to devote his whole time to the society's work. As the business grew, new departments were added: in 1876 a bakery was opened; two years later the sum of $500 was voted for the establishment of a library and reading room for the use of members; tailoring and shoemaking departments were added in 1879; a butchery department in 1884; a furnishing department in 1885; a farm and coal department in 1886; milk, fruit, and vegetables departments in 1887; a confectionery de

partment in 1893; and a works department, which has since erected all the society's houses and new stores, in 1896.

As showing the progressive character of the Woolwich Society there have been fitted up in one of their large branches two magnificent barber shops of the most modern type. One of these is for women and the other for men, and in both cases they are far in advance of anything provided by private enterprise in the district. The society also has its own bakery, which, in addition to making an average of eighty-six thousand loaves a week, also makes cakes and pastry for sale in the society's stores.

During the last decade the society has entered on a large scale into the real estate and lending business. In 1886 a farm of fifty acres was purchased, and ten years later 150 more acres were added to this. Modern residences have been erected on this land-680 up to the present time, all of which have been sold. The houses are sold to members on easy payments. The society itself made the advances at first, but now more and more it urges its members to deal with outside building societies. The houses are sold on the basis of a 90 to 99 year ground rent lease. The unsold houses are let on weekly tenancies, while the unoccupied land is leased on six months' tenancies.

How the society reached out for new duties is well typified in the fact that with the commencement of building on the estate it assumed powers to engage in the business of insurers. A covenant is inserted in all the leases that the fire insurance connected with each house shall be lodged with the society, and it also insures the residences and furniture of members.

The land and mortgage advance departments of the society form a very important section of its business, for

they have done much, not only to consolidate the members by widening their interests in the society, but as landlords have given the society a standing which it could not have obtained in any other way.

The organization of the retail society is much like that of a corporation. The ultimate control is lodged in the members. These members elect a managing committee of nine directors, which, like the board of directors of a corporation, is in control of the activities of the society. Four subcommittees have direct control over the business, each over a certain department. Each committee consists of four directors and a chairman; the chairman of the directors, elected semiannually, is also chairman of each committee. These subcommittees the grocery committee, the drapery committee, the estate committee, and the finance committee cover every possible activity of the society. All important matters come up to them and pass their decision before going up to the committee of nine or being put into effect.

Next in power is the general manager, who controls the entire business, as far as the trading departments are concerned, under the direction of the directors. Each department is in charge of a manager and buyer combined. He has the duties of the head of any department in a large retail establishment: he buys the goods and is in charge of all stocks of his department; he has nominal control over the sales and employees of his department. But he is distinct from the store managers: goods and salaries are under the buyers, general management is under the store managers.

All financial matters and transactions with members aside from their purchases are in charge of the secretary. He handles all money and the purely corporate affairs of the society. He has, in addition, charge of the estate

department, mortgage department, and insurance department since these relate primarily to finance.

The sales methods and the accommodations provided by the coöperative societies differ as good business dictates, depending entirely upon the competition they have to meet. The advertising and the sales end of the business is handled much like that of any other retail store. The stores realize that they must do a big business in order to have the advantage of large-scale economies; they realize that in order to do a big business they must offer inducements, must give as good prices to their customers as any other source of supply open to them. But they also realize that, inasmuch as their customers get the benefit of their profits, it is not necessary to put their prices too far under the market.

For instance, in the manufacturing districts of the north of England members of the "Coop," as it is familiarly called, are usually content to go to the store, make their purchases, and take them away with them. In many of these districts the distribution of goods is confined to the hire of a heavy truck for the Saturday afternoon delivery of heavy parcels and bulky goods. In the London area, however, coöperative societies are necessarily in very active competition with the huge dry-goods stores, and with trading concerns having a large number of distributing branches throughout the London area. As a consequence, not only have the lowest possible retail prices to be maintained by the coöperative stores, but distribution facilities, equal in character to those of their competitors, have to be provided. The Woolwich Society has fully realized this, and it is in no way behind any competing firm.

In addition, particular attention has been paid in the erection of business premises to make them as attractive