Full resolution (JPEG) - On this page / på denna sida - V. Social Movements - 1. Labour Questions and Social politics - Cooperative Societies. By G. H. von Koch
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cooperative societies.
697
These societies are, as a rule, registered under the Economic Societies Act
of 1895, which was amended and superseded by an Act of 1911. Prior to the
Act of 1895, the members were jointly liable for the engagements of the society,
which was a great handicap in its operations. Under the law now in force
these societies may be formed either without personal liability or with personal
liability limited to a certain fixed amount. The former mode of constitution
has been that almost universally adopted. The number of members, as well as
the amount of capital they are entitled to invest is usually unlimited: a
minimum investment of 50 kronor is nowadays the rule, whereas formerly a share
of from 10 to 25 kronor was the common thing. Each member has a vote.
New members may be admitted and may withdraw at any time, although the
societies may determine that a member shall not withdraw before two years
have elapsed from his admission. The administration of the society is in the
hands of a board of from 5 to 7 members, and business operations are managed
by a director with assistants. Members’ meetings are held from one to four
times a year.
Owing to the obscure formulation of the Act of 1895, it long remained a
moot point whether members were entitled to trade with non-members, and this
matter gave rise to numerous difficulties. By the construction the law received
in 1911 the societies are entitled to deal with others than members, though in
that case all transactions must be in cash.
The cooperative societies are as a rule constituted in accordance with the
Rochdale system. Thus the prices of goods are the same as those current in the locality,
and any surplus that accrues is distributed among members at the termination
of the year — as a rule after 5 % has been appropriated to interest on the shares,
and after certain amounts, determined by the statutes, have been written off
and funded — in proportion to the purchases made by members. In all
properly conducted cooperative concerns transactions are in cash; frequent
exceptions, however, still occur.
When the cooperative stores first started their operations, they committed
plenty of blunders in economic matters, and it was not in the least surprising
that a large number of the societies were eventually dissolved (from 1897 to
1911 no less than 259, that is, 218 % of those registered, to which there fall
to be added 170 that failed to give notice of their dissolution). A good many
of the societies that were dissolved had been in the Bankruptcy Court. Some
of the causes of the failures were, for instance, an extensive credit system, too
small a share capital (which renders it practically impossible to purchase goods on
favourable terms), bad management, and so on. However, the number of societies
dissolved per year has been steadily diminishing, which is due in a great
measure to the efforts of Kooperativa Förbundet (the Cooperative Union), which
has been doing its best to induce the various cooperative societies in the country
to conduct their business on sound commercial principles.
It is worth noting that several of these enterprises that are now on the top
rung of the ladder began in very modest fashion. It was by no means an
uncommon thing that the members of the board themselves at first took in
hand the practical management of the business. An example in point is the
Gävle Workmen’s Cooperative Store, which was formed in 1899 with only 34
members, with little more than 1 000 kronor by way of capital, and with
a turnover of only 36 722 kronor to show as the result of the first year of its
existence. Since that time the Society has been steadily and persistently
developing, and at present it is the owner of 10 grocers stores, 2 meat stores,
1 boot store, 1 milkshop, a tinned meat factory, a small-beer brewery, and a
dairy.
The Society, which now only deals with its own members, had at the close
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