FABIAN TRACT N 0. 202 THE Constitutional Problems of a Co-operative Society BY SIDNEY WEBB PuBLISHED AND SoLD BY THE FABIAN SOCIETY By arrangement zvith the Trustees of the Sara Hall Trust, in commemoration of the life and work of Robert Owen PRICE TWOPENCE LONDON: THE FABIAN SociETY, 25, ToTHILL STREET, WESTMINSTER, S.W. 1. jANUARY, 1923. THE FABIAN S OCIETY. 25, TOTHILL STREET, WESTMINSTER, LON DON, S.W.l. Those willing to join the Labour ~arty, or desirous of obtaining informa about its Programme and Principles, are invited to communicate with the Secretaryof the Fabian Society. The Fabian Society has been, from the outset, a constituent body of the Labour Party ; and membership of the Society carries with it full membership of the Labour Party ; eligibility for nomination to all Conferences and Offices, and qualification for Labour Party, candidatures for Parliament and Local Authorities, without obligation to belong to any other organisation. The Society welcomes as members any persons, men or women, wherever resident, who subscribe to its Basis (set forth below), and who will co-operate in its work according to their opportunities. BASIS OF THE FABIAN SOCIETY. To BE SIGNED BY ALL MEMBERS. Adopted JI!Jay 23rd, 1919. The Fabian Society consists of Socialists. It therefore aims at the reorganisation of Society by the emancipation of Land and Industrial Capital from indi vidual ownership, and the vesting of them in the community for the general benefit. In this way only can the natural and acquiredadvantages of the country be equitably shared by the whole people. The Society accordingly works for the extinction of private property in land, with equitable consideration of established expectations, and due provision as to the tenure of the home and the homestead; for the transfer to the c.ommunity, by constitutional methods, of all such industries as can be conducted socially; and for the establishment, as the governing consideration in the regulation of production, distribution and service, of the common good instead of private profit. The Society is a constituent of the Labour Party and of the Tnternational Socialist Congress; but it takes part freely in all constitutional movements, social, economic and political, which can be guided towards its own objects. Tts direct business is (a) the propaganda of Socialism in its application to current problems ; (b) investigation and discovery in social, industrial, political and economic relations; (c) the working out of Socialist principles in legislation and administrative reconstruction ; (d) the publication of the results of its investigations and their practical lessons. The Society, believing in equal citizenship of men and women in the fullest s~nse, is open to persons irrespective of sex, race or creed, who commit themselves to its aims and purposes as stated above, and undertake to promote its work. The Society includes : 1. Members, who must sign the Basis and be elected by the Committee. Their Subscriptions are not fixed ; each is expected to subscribe annually according to his means. They control the Society through the Executive Committee (elected annually by ballot through :t postal vote), and at its annual and other business meetings. II. Associates, who sign a form expressing only general sympathy with the objects of the Societyand pay not less than 10s. a year. They can attend all except the exclusively members' meetings, but have no control over the Society and its policy. IlL Subsr;~~~~~~swho must pay at least 5s. a year, and who can attend the Society's Ordinary The monthly paper, Fabian News, and the Tracts from time to time published in the well-known Fabian Series, are posted "to all these classes. There are con venient Common Rooms, where light refreshments can be obtained, with an extensive library for the free use of members only. Among the Society's activities (in which it places its services unreservedly at the disposal of the Labour Party and the Local Labour Parties all over the country, the Trade Unions and Trades Councils, and all other Labour and Socialist organi sations). may be mentioned: (L) Free lectures by its members and officers · (ii.) The well-known Fabian each cbntaining about three dozen of the best books on rr•uut~m.s. which can be obtained by any organisation of 5~0..\'~it~=fr:;r,;~~ an exchange of books every three months ; 't "'~"'''"''" fl ancl others on legal, technical or The Constitutional Problems of a C o-operative Society. Bv SmNEY WEBB. I I N the early years of a Co-operative Society, as in tHe infancyof the Co-operative Movement itself, we find little thoughtof constitution-making. The little band of members come together in general meetings, which are not too numerously attended to be able to get through the business Without elaborate standingorders or formalities. It is easy to designate one member to act as Secretary and another as Treasurer. Presently a committee is elected with equal simplicity, which continues to lay before the members' meeting, quarter by quarter, a plain tale of the society'shumble experiences. Nowadays a new co-operative society finds ready to hand the carefully thought-out Model Rules of the Co-operative Union, into which an immense amount of labour has been put. The adoption of this well-devised constitution avoids all perplexities and makes easy the necessary task of getting the sanction of the Chief Registrarof Friendly Societies for the rules. Hundreds of co-operative societies have in this way grown to prosperity, and even to some magnitude, without encountering any constitutional problems. " Let Sleeping Dogs Lie." Now, where there is no problem, and no grievance or difficulty, it is in the highest degree unwise to meddle with the society'sconstitution. It is not a mark of wisdom or of discretion when a committee, or an individual member, proposes an alteration of the society's rules 'merely in order to give them a more elegantexpression, or to incorporate some fad of current interest, or to graft upon them some innovation of theoretical advantage. A perpetual tinkering with the constitution is, in some Democracies, actually a disease; and one from which the Co-operative Movement of Great Britain has been honourably free. Nothing could well be more undesirable than to have motion after motion brought forward, one year after another, either in the members' meetings of individual societies, or at the congresses, conferences or delegate meetings of federal institutions, seekingto change the rules or alter the constitution. The public opinion of the Movement should concern itself with the work done and to be done; and with the spirit by which it is inspired, rather than with the constitutional machinery. 4 An Experienced Executive. Nevertheless, as each society grows in magnitude, some changes in its machinery will be necessary. The clothes of the infant become unsuitable for the growing child, and the adolescent requires, at each stage of growth, a new suit. One of the changes required,(1) as the society's business increases in magnitude, is a strengthening of the executive body, to which the members entrust the management. In the early days it was customary for the members to take turns to serve on the Committee of Management. In some few cases (as in the great St. Cuthbert's Society at Edinburgh) the rules actually provided for service in rotation as the names stood on the list of members, anyone objecting to take his turn being subject to a fine. Nowadays the members always elect the Committee; but many societies cling to the idea of rotation, and require each member to stand aside after the expiration of a fixed term. Experience has taught co-operators, like other people, that any such rule or practice is detrimental to efficiency of administration. However convenient it may be to be able to get a change without hurting anybody's feelings, this convenience is dearly bought at the expense of regularly displacing the committee-men who have learnt their work. " If we desire to make our societies more efficient," declared Alderman F. Hayward, JP., in his inaugural address at the Co-operative Union Congress in r9r9, " we must abolish all time-limits for committees and abandon the method by which appointments are made in accordance with a rota system. . . . . A rule compelling persons to retire after a short period of service is equivalent to having committees permanently in the stage of apprenticeship." Let the Committee Choose its own Chairman. Most societies start with a President elected by the members; and the President (who ought to be the most active member of the Committee, making himself personally responsible for continuous oversight of the society's affairs) does not always find himself serving with a sympathetic committee. Itseems to be a better plan, and one now sometimes being adopted, for the committee to choose its own chairman, and for him to lead in the administration ; the office of President being, so long as the society can get along with "part time" direction, simply discontinued.(2) ( 1} Further examples and additional information with regard to all the points raised in this pamphlet will be found in The Consumers' Co-operativeMovement, by S. and B. Webb, 192I. {2) It may be borne in mind that the rules of co-operative societies, unlike the statutory constitution of Local Authorities, provide for the removal of any member of the committee of management at any time by two-thirds of the members present and voting at a special general meeting, which maythereupon proceed to fill up his place by a majority of the members presentand voting. 5 Representation of the Employees. Much more important than the election of the President or Chairman is, however, the hotly-debated question of the representation, upon the Committee of Management, of the society's own employees. The change of opinion during the past" decade has certainly been remarkable. Originally, as is well-known, the employees were invariably debarred from election to the Committee <>f Management; generally disqualified even from voting at its election ; and, in some cases, absolutely excluded from membershipin the society. They are now everywhere allowed, encouraged and even pressed to become members. Many societies have abrogatedthe long-standing explicit disqualification of employees to vote as members in the election of the committee of management : an enfranchisement sometimes restricted to adult employees, not married and not living with their parents, who are members. It looks now as if the Co-operative Movement would frankly accept (1) the view that there is no more justification for disfranchising a member merely because he happens to be also an employee of the society than for the denial of the Parliamentary vote to the citizen who is a postman or a policeman. The eligibility of employees for election to the committee of management by vote of the members is less widely accepted, and may be more open to question. (2) ( 1) The Co-operative Union has, however, not yet omitted the disfranchis1~ clause from its Model Rules (edition of rgzo). ( 2) The report of the General Co-operative Survey Committee in rgr ggives a very hesitating opinion with regard to employees participating ill the management and control of the-Society by which they are employed. "Vl'e are of opinion," they state, "that there is not yet sufficient experience to justify a recommendation that employees, as such, should have representation on management committees ; but we believe 1t would be in the interests of the Moverrent if one or more soc1eties were to make the experiment. There are one of two societies, upon the management committee of which employees may sit as employee-s, but as the employees on the committee have usuallybeen officials these cases do not provide the experience which we consider is required, for the present-day demand is for representation of th~;; rank and file employees. W'hilst we do not recommend anything more than an experimentin the way of official representation on committees of employees as such, we are strongly of opinion that employees of a societv who are members of a society should not be by rule rendered ineligible for election to the committee because they are employees.... Whilst thus desirous of giving to employeestheir full rights as members of their societies, we are of the opinion that much of the work of management committees does not aflect employees as such, and that provision for the employees to participate in the determination of the conditions of the1r employment can be provided by some form of workshop committee or joint council representative of the management committee and employees,the appointment of which we recommend. We are of the op1nionthat the formation of such workshop committees or ioint councils would meet the vital needs of the employees, and probably render unnecessary any specialrepresentation on the management committee. The subject of workshop{;omrnittees is further discussed in a later part of our report de<1ling with welfare work" (Rep01·t of the General Co-op~rative Survey Committee, rgrg, p. 194)B 6 A few societies (like the Crewe Co-operative Friendly Society Limited} have never had any disqualifying rule, though members who were also employees were not often nominated. They are now beginning to be nominated and elected-the Crewe Society had its first employee member in tg18 and its second in 1920. The York Co-operative Society, in 1922, haQ four employees sitting on its committee of management, one of them being the secretary of the local branch of the employees' Union. Where there was an express disqualification, this has sometimes r:>een simply abrogated (as in the Ann- field Plain Industrial Co-operative Society Limited). In other cases express provision is being macle in the rules that not more than one (1) or two employees shall be eligible for election, or not more than one-sixth of the total number of the committee. The Sunderland Equitable Industrial Society has for twenty-one years allowed the election of one employee. during which time the same person has alwavs been re-elected. The new rules now being adopted in other societies (as in Manchester and Salford and the Warrington Equitable Co-operative Society Limited) usually allow of" the election of not more than two employees upon the committee o[ management." A Welsh society now allows four such members. Some other societies put no limit on the nnmber of employees who may be chosen by the members.(2) Altogether several dozen societies. (out of 1,300) have definitely removed the disqualification of employees. As an outcome of the movement of thought and of tl!e alterations in the rules, employees are being nominated for election in an increasing number of societies, occasionally as many as four at a time for seven places, though they are not always elected. In a score or so of societies at least, an employee, and sometimes two or three, may now (1922) be found on the committee. The great Liverpool Co-operative Society has three. There are, however, already signs of a reaction, especially where candidatures of employees have been more numerous than has been liked by the members. ( 1) "No membershall be disqualified from serving on the Board of Directors by reason of his being employed by this Society, but not more than one person employed by the Society shall be a Director at the same time " (newrule of 1920 of the Hucknall Torkard Industrial Provident Society Limited). ( 8)" Any servant of the society ccmplying with the foregoing shall be eligible for nomination to a seat on the board of management" (Rules of the Newbiggin District Industrial and Provident Society Limited, 1920). "Employment by the society shall not disqualify a member from being an officer other than P ublic Auditor" (Rules of the Coventry and District Co-operative Society Limited, 1920). Under this rule one employee was promptly elected a committee-man. 7 There are, indeed, some objections to the election, at the members' meeting, of employees to be committee-men; (1) and there can be in this way no assurance that the person chosen represents the views or feelings of the staff. Accordingly a few societies have taken another line The rules of the Hendon Industrial Co-operative Society provide for a special "Employees' Representative" being elected annually to the committee by the Employees themselves, quite apart from the election of the other members at the quarterly meeting. The Bishop Auckland Industrial Co-operative Flour and Provision Society, by the rules revised in 1915, has specifically laid it down that " the employees of the society mayappoint one of their own number, who is a member of the society, and eligible according to rules 79 and 89, to be a member of the committee. He shall share in the duties and responsibilities of the committee, and be paid for his services at the same rate as the other members of the committee except (a) he shall not be an officer of the society [meaning not president, secretary, or treasurerj, (b) he shall not be paid for attendance at meetings or for services performed during hours tor which he receives wages from the society."(2) Among the South Wales societies this practice is spreading. In the Dowlais Society (3,160 members in 1919, with sales of £186,069) one employee is elected by the employees themselves to the committee of management, and two others to the education committee. The Nantymoel Society (2,284 members in 1919, with £232,442 trade) had, in 1922, no fewer than four employees elected to the committee of management by the employees, these constituting one-fifth of the entire body. But there is yet another line along which provision has been made for the participation of the employees in the conduct of the co-operative societies' activities. The separately elected education committee, which exists in every important society, and sometimes exercises considerable influence-managing the hall, the library, the lectures, and the social entertainments-usually accepts ( 1) Canvassing for votes has been found an evil. Some societies have penalised the practice. Thus, in the Bolton Co-operative Society's rules it is stated that " Any person seeking election on the Committee of Management and on the Educational Committee found to have been soliciting votes by the circulation of canvassing matter, or to have induced other persons to solicit votes for him in that manner (either before or dfter nomination) or to have canvassea the servants of the society, sha!l be disqualified and shall not be again eligible for a period of t wo years." " Any member of the societyfound to have issued canvassing matter on behalf of any candidate, or found canvassing within roo yards from the entrance of any of the society's pollingstations on the day of election, shall render himself liable to expulsion from the society" (jubilee History of the Bofton Co-operative Society Li11:ited, 1909, p. ,;r8). ( 2) Rules of the Bishop Auckland Industria{ Co-operati<•e Flour .1nd Pro1' ision Sariet\' L·h::itd, 1915. 8 employees as eligible for election, and they sometimes take an active part in the work. In some of the larger societies there have been established shop or works committees of employees only, entitled to confer with the committee of management about all matters affecting the staff; and even something like "WhitleyCouncils," composed of representatives of the management and of the various sections of employees exclusive of the management, in equal numbers, for the consideration of all such questions. Thus, the Warrington Society, which, as we have seen, allows two employees to be elected by the members to the committee of management, also provided in 1919 for the appointment of a very elaborate "Joint Advisory Committee" composed of equal numbers representing the committee of management on the one hand and of the employees of the society on the other, for the following amongstother purposes, namely : " To consider the general welfare of the employees, and to make recommendations to the committee of management from time to time ; to consider the education and training of the employees from a Co-operative standpoint, and to make recommendations thereon ; to consider all such matters as may be referred to it from time to time by the committee of management, and to endeavour to cultivate and maintain a co-operative spirit and understanding between the management and the employees on all matters affecting their common interests and that of the industry which they mutually serve." It is further specifically provided that " the following are, amongst others, the questions which shall be referred to the AdvisoryCommittee for consideration: I. Hours of labour and business. 2. Minimum rates of wages and working conditions. 3· Sickness benefit and its application. 4· Annual and other holidays of the staff. 5· Check-book surplus and deficiencies. 6. Incompetence, dishonesty, or indifference of any members of the staff. 7· Disputes arising between Trade Unions and the society. 8. Suggestions for improving methods, extensions of branches, and new lines of business. 9· None of the above clauses shall in any way interfere with recognised Trade Union functions." This important and influential committee in a highly successful society, having some 20,000 members, a quarter of a million poundsof capital, and an annual turnover approaching a million sterling, consists of fourteen members, seven (of whom two must be women) elected by the committee of management and seven by the employees, q the latter being chosen each December by all the employees over twenty years of age for the time being, voting in five sections, namely, Office Staff (one) ; Branch Managers (one) ; Grocery (one male and one female) ; Drapery, Boots, Clothing, and Furnishing (one male and one female) ; and Bakery, Vanmen, and Carters (one). It meets when it likes, but outside working hours, in a room provided by the society, and chooses its own chairman and secretary, the latter being paid by the society. (1) The Coventry and District Co-operative Societv (established r86g, in rgzo 26,245 members) has formed a "Labour AdvisoryCouncil" of similar nature. It consists of six members appointedby the committee of management, and ix elected by ballot by the employees for one year. The employees in the Works, Dairy, Garage, Coal, and Stable departments choose one; those in the Farm department, with the carters, choose one; those in the Outfitting, Furnishing, Tailcring, Boots, Drapery, and Millinery departments choose one; those in the Bakery, Grocery, and Confectionery departments choose one ; the Clerical Staff chooses one; and (a characteristic of Coventry industrial organisation) one is chosen from and by the " shop stewards." The Council appoints its own chairman, who must be neither 2.11 employee nor an official of the society. It meets once a month to interpret the rules as to conditions of service. and to consider matters referred to it by the committee of management, the shop stewards, or the employees themselves ; and it reports. not only to the committee of management, but also to the general meeting of members.(2) The extent to which the zo,ooo members of the \VarringtonSociety and the z6,ooo of the Coventry Society have recognisedthe claim of their four to seven hundred employees to participatein the management of what concerns their working lives, and the apparently well-devised constitutional machinery devised for this purpose, represent, I think, a high-water mark of democracy in the Co-operative Movement. A Full-Time Salaried Executive. Latterly there has been introduced the revolutionary conception of a paid and "full-time" executive, which sometimes takes the form (as in the Barnsley Society) of a salaried president an.d two salaried vice-pre idents, supplemented by " ordinary" directors. In such a case the salaried president and vice-presidentsare elected by the whole membership, like the" ordinary" directors, but for a longer term of years (for insta_nce, for five instead of ( 1) Constitution and Rules of the \\"arrington Co-operative Society's Toint Advisory Committee, r9r9. ( 1) H.ules of Coventry and District Co-operative Society. IO three years).(1) A further step has been taken by the Royal Arsenal Co-operative Society, established r87o, and in rgrg selling goods to the value of £2,633,941 per annum to a membership of 68,509, extending from Erith to New Maiden. This society now entrusts its entire manag<:!ment to seven directors, who give their whole time to the Society's service for a salary of £400 a year. They have been elected by the entire membership, voting by ballot papers, on the system of the single transferable vote, it being believed that this would prove a better way of securing a certain degree of "district representation" than if the electorate were divided into geographicaldistricts. One of them, it is to be noted, was an employee, who naturally had to cease to be one of the staff when he became one of the dire-ctors. The outcome of this experiment will be watched with interest by the co-operative world. Other large societies, notably those of Leeds and Bolton, are already considering the revision of their constitutions in the same direction. This transformation of the executive, in a few of the largestsocieties, from a committee paid only by fees to a small number of full-time salaried officers is, perhaps, the most momentous of the changes that are now taking place in the constitutions of the cooperative societies. When we realise the inevitable limitations of the committees of men engaged during the clay in earning their own livelihood in m:~.nual or clerical labour, able to meet only in the evening, at the end of exhausting toil, and unaccustomed in their daily lives to any but a narrow range of dealings in small sums, we can only be amazed at the capacity and success with which these co-operators have coped with business running literally into millions of pounds annually. And it is not failure which is leading to the supersession of the unpaid committee-men, for it is exactly .in the largest and most successful societies that the idea is being adopted, but the sheer inability of getting through the ever-growing volume of business by evening meetings, even if held six nights a week.(2) But if co-operators find it necessary to secure the full-time services of committee-men or directors, they must make up their minds to pay proper salaries. Every experienced co-operator knows this, often after painful past experiences, when it is a question of managers, or heads of technical departments, or accountants. (1) The salaries at present (r 92 1) fixed in the Barnsley Society are £t•oo for the president and { 550 for each ,·ice-pr('sident. free of Income Tax. The " ordinary" directors now receive £roo a year each, instead of the usual fee for each attendance. ( 2) It may be observed that it is usual in all the larger co-operative societies of Germany for the" Vorstand." or executive committee of the three principalofficers, to give their whole t ime in return for salaries. So in Belgium, the well-know "Voruit" of Ghent, and " Maison du Peuple " of Brussels, are governed by three salaried officers, the functions of the elected committee, or conseil d'administration, being rather of a supervi ory and ratifyingcharacter, except as regards new departuJes of policy. II No co-operator to-day would seek to justify taking on carmen or .engineers, joiners or bakers at less than the accepted Standard Rate for their particular crafts. Many people, however, fail to realise that administration or direction-which is the craft for which a committee-man or director should be chosen-is itself a -skilled occupation, one requiring knowledge and training, as well as character and ability ; and one commanding a price in the market. Fancy thinking to hire management at £8 per week! Co-operativesocieties have often been well-served, in different capacities, by men who have given their whole lives to the Movement for a mere pittance, and sometimes entirely gratuitously. Such self-sacrifice does them 110nour. It is not quite so honourable of the Movement to go on, year after year, complacently accepting the sacrifice. It is not very creditable to the members of a society that they sh.ould see its premises steadily increase in value, and its reserves grow, whilst its dividend is steadily maintained__:when all the time this prosperity is very largely the result of the faithful, zealous services of men and women, whether as members of the committee or members of the staff, who are not being adequately paid for their work. There is such a thing as "sweating" the brainworkers, and "exploiting" devotion to the Movement, as well as "sweating" the wage earners. There is nothing specially democratic in accepting gratuitousservice, or in paying for it below the market-rate. On the contrary, it is, in a sense, highly undemocratic to take this course, because it involves the exclusion from office of all those whose family or -other circumstances do not allow them to make such a sacrifice. \Ve do not get too much first-class ability in our co-operativesocieties ! We ought to open up all the important positions in the Movement to the ablest of our members, even if they are poor. This is what we refuse to do so long as we take advantage of the devotion of those who are able and willing to serve us at salaries below the market rate. It must be borne in mind that, valuable and even necessary as may be the adoption of a full-time salaried Committee of Management or Board of Directors, this very change inevitably separatesthe committee-men or directors still further from the mass of the members. It may increase among the members the apathy that is complained of. It may tend to intensify the already greatdisinclination to make complaints, or utter any criticism, of the management ; and, on the other hand, to make the salaried and almost permanent management callous and contemptuous with regard to the members' grievances. It may well be that those societies that change their constitutions in order to get greaterefficiency in their executives, require also to make changes in order to ensure at least an equal increase in active co-operatiYe citizenship among the members at large. IZ The Educational Committee. Most of the co-operative societies in Great Britain seem to have relied largely on their Educational Committees for bringing the members into touch with each other. I do not propose to deal here with the manifold useful activities of Educational Committees ; but even the most active of them can hardly claim to secure the active participation of more than a tiny percentage of the membership of its society. They do not, because they cannot, organisethe membership as a whole. Useful as their function is, whether in education or in propaganda, it does not solve the constitutional problem presented by the apathy and indifference of the members. at large, who no more actively desire to be educated than to be troubled with attendance at business meetings. Ur'lfortunately, as I thitJ.k, there seems to be, in many societies, a certain estrangement between the Educational Committee on the one hand, and the Committee of Management and the principal officers of the society on the other. Indeed, in something like one-third of the societies there appears now to be no Educational Committee at all ; whilst in others the grant for this committee has been cut down. Now, I happen to believe very strongly in both the educational and the propagandist functions of the Co-operative Movement. I believe that they are not (as is often assumed) one and the same ; but that they could both be considerably developed with advantage. That, however, will be dealt with elsewhere. What here concerns. us is the constitution of the co-operative society ; and on this pointI venture to submit a suggestion to my fellow members. I think that the Educational Committee, in nearly all societies, suffers. from its isolation, from its complete separation from the Committee of Management, and, usually also, frcm its divorce from the attention of the principal officers of the Society. It is looked upon by them too much as a "side show," if not even as a useless "fad," yielding no pecuniary profit to the society's balance sheet. With the adoption of a full-time salaried executive this isolation and subordination of the Educational Committee is likely to increase. Some critics have suggested the abolition of the Educational Committee, with an express instruction to the elected Committee of Management that the work is to be continued under its own direct administration. This, it is feared, might mean less educational activity instead of more! Several societies have provided, by rule, that two or more members of the Committee of Management shall be deputed to sit on the Educational Committee, so that the two bodies may be kept in touch. This device does not seem to have much improved matters. If any revision of the constitution is decided on, I think the most promising hint is to be taken from the Local Education Authority of our County Boroughs and County Councils under the I3 Education Acts of rgoz-3. I would make both the educational and the propagandist functions of the society as much part of the responsibility of the Committee of Management as the buyingand selling of commodities. But I would require the Committee of Management to appoint a distinct Educational Sub-Committee. consisting of several of its own members, and for the rest, of members. selected by the Committee of Management to serve for a year, after publicly inviting nominations from the Guilds, from anyeducational classes that have been going on, from the staff, and from the members at large. The Educational Sub-Committee shotild be empowered to manage the current business, after getting its financial budget approved, and subject to reporting for sanction any new departures. I believe that this annual eo-option of members particularly qualified for or specially interested in educational work, to sit with those popnlarly elected by the society as a whole, affords the most effective wav of" joining up" the educational work ,,·ith that of the Committee of Management. The work of propaganda (which co-operators make a mistake in mixing with education) ought to be combined with advertising; and needs, perhaps, to be dealt with by a special officer, and, in large societies, by a special department, under the direct control of the Committee of :\lanagement. But just as there will be no effective educational work without a well-constructed committee, so there will be none-at least not for any length of time, or continuously-without an officer specially appointed to " run " it. In all but the smallest societies he must give his whole time and thought to the work. (He might, in smaller societies, give a few lectures ; supervise the library ; or even teach a class, as part of his work.) But his main work must be that of an organiser and an administrator ; and for this, if efficiency is to be obtained, a proper salary must be paid. Yet a large society, which has learnt to pay its general manager £8oo or £r,ooo a year, will long make shift with an Honorary Secretary of the Educational Committee; and, when it comes to appoint a salaried officer, will think £F, a week munificent for the administration and organisation of all its educational work ! How to Overcome the Apathy of the Members. But co-operative history reveals, it may be suggested, other shortcomings than the failure of Committees of Management and Educational Committees to rise to the height of their great task. Co-operators themselves complain more of the apathy of a large (and, as some say, an increasing) proportion of the members. In too many cases, the members, old or new, think of the co-operative store simply as an advantageous retail shop. Many of them remain ignorant of the fact that it is their own enterprise, dependent for its fullest success on their personal interest and active participation in its administration. Even if they continue their purchasesthey do not share in the co-operative life. They remain often unaware of new developments in their own society. They do not attend the quarterly meetings. They are often very far from being conscious citizens of the Co-operative State. This apathy among the members is, of course, their own fault. But it is a drawback, not to themselves alone, but also to the Movement; and it may easily become a danger to any society. To overcome tlus apathy co-operators have tried many devices. Sol1ile of these necessitate changes in the society's constitution. District Meetings. One way of combating the members' apathy is to make it easier for them to attend the quarterly meetings. \Vhen a societ:-· has grown so as to include more than a few thousand members: or whenever its membership has spread into several towns or villages or over any considerable area, it has been found useful (as it has been in the C.W.S.) to hold the members' meetings in separate parts, in different meeting places, at closely connected dates.(1) These District Meetings are an invention of the Co-operative Movement, and are, I believe, not kn-own outside it. For they are, legally and formally, not separate meetings but merely portions of one members' ( 1) In the Haswell Co-operative Society, established 18IA>, which had in 1919 ),481 members, it is provided in the r920 rules that "the membershipresiding at the various places where business is done by the society shall be divided into districts, and district quarterly meetings shall be held at which lhe same business paper as will be submitted to the generai quarterly meetingshall be considered and voted upon. A member may attend and speak at any meeting, general or district, but shall only be entitled to vote at one 0f such meetings." The 6,726 members of the Chester-le-Street Co-operativeand Industrial Society (established 1862), who shop at then central premisesand nine branch stores, are, for the purpose of voting, elaborately divided accordmg to the1r places of residence into twelve electoral districts : and they may vote only in their respective districts. The poll is open for three weeks preceding each quarterly meeting. The great Plymouth Society has a more elaborate rule . "On all matters of unusual interest, in order to obtain the votes of members from all parts of the.district covered by the society on a specific question or questions, the committee shall have power to convene district meetings. These meetings shall be held in suitable halls, and shall be as far as possible held simultaneously, but in each case the hst meeting must be held not later than fourteen days after the date of the first meetings. yhe agenda for each meeting must be the same, and any deviation therefrom 1n any one or more of the meetings shall make the decisions of that meetingvoid and of no account. No member shall attend more than one meeting. Admission to these meetings shall be by production of the member's share pass book, and his attendance thereat shall be registered by the stampingof the vouchers therein contained and printed for that purpose. Specialdistrict meetings may also be called . .. . not less than 50 members in earh and every district" (Rules of the Plymouth Co-operative Society Limited, 1916, p. 31). IS meeting, identical resolutions being put to the vote at all of them, and the decision being found by adding together the votes for and against that have been cast at all the District Meetings. Some, at least, of the Officers and Committee-men are in attendance at each meeting, in order to conduct the business and answer questions. The institution of such District Meetings has been found useful in making it easier for members to attend; in maintaining interest among members living at a distance from the Central Store ; and sometimes in securing the election to the Committee of members belonging to different parts of the area covered by the society. It seems to secure the attendance, in the aggregate, of a largernumber of members than the former single meeting; but by no means an adequate proportion of the total membership. Some of the District Meetings get very poor attendances. Making the Business Meetings more Social. But co-operative man does not live by business alone ; and it is worth consideration whether the Members' Meeting, even if sum moned only to hear the report and declare the dividend, might not, with advantage, be made more of a social gathering than it is at present. It may be too expensive for the society and not altogether desirable, to bribe the members to attend by providing a free meal. But it would cost little, and would be unobjectionable, to offer merely a cup of tea or coffee-even a cigarette-at the beginning or end of the meeting ; to allot at some stages of the proceedings half-an-hour for friendly gossip ; and to give the Committee-men and Officers of the society an opportunity of conversing with old friends in the membership, as well as of making personal acquaint ance with new members. Somehow or other, if any genuine co operative life is to be maintained, it must be possible to arrange that new members should find an opportunity of making acquaint ances among the older members; and that officers and committee. men should hold out the hand of welcome to recruits. Organising the Whole Membership. Even apart from good-fellowship and friendly intercourse, for which some co-operative societies seem to make no provision at all, we are apt, as it seems to me, in all societies to leave the individual member too much to himself ; to rely on his frequenting the store and reading the notices and posters displayed there ; and to trust to him spontaneously to make known his wishes, to complain of any shortcomings, and to communicate to the management any grievance of which he is conscious. In some of the verysuccessful German co-operative societies (which have, in various ways, gone ahead of our own), the constitution provides for a systematic organisation of the whole membership. Each group of neighbours, to the number of a hundred or so-sometimes those who r6 live in the same street, or group of adjacent streets; sometimes. those who live in a particular village or hamlet-are placed in charge of one of their number, who volunteers to serve for a term as the connecting link between them and the management. He is appointed by the Committee of Management, and his first and principal duty is to deliver promptly to each of the members on his list any notices that he receives for this purpose. In this way the Committee of Management is able, without the heavy expense of postage, to put into the hands of every household, even where the- member does not trouble to visit the store, a series of. invitations to, or notices of, meetings or lectures or entertainments: a series of advertisements of specially attractive goods that are on sale; and even a series of requests for individual orders for particular commodities that can be bulked for transmission to the Wholesale Society. At the same time the Group Agent hears any grievances or receives written complaints, which he communicates to the management. Periodically the whole of the Group Agents are invited to meet the Committee and Officers; when a free discussion takes place about possible business improvements and new developments, concluding with a festive meal and an entertainment. In a society of ro,ooo members, divided in this way into groups of roo each, the hundred Group Agents for the time being would constitute a valuable link between management and membership. Those who have not tried the experiment of thus organisingthe whole membership sometimes declare that it cannot be done ; that volunteers as Group Agents could not be found, even for such a short term of service as six months ; that the members would not like it ; that the management would be overwhelmed with foolish complaints, and so on. The answer is that the" Production " of Hamburg, and other great co-operative societies in Germanyactually do it, and find it extremely successful. Merely as a device for business advertisement it is invaluable. Any capitalist trader would jump at the chance of such an organisation. I cannot believe that British co-operators are incapable of it. Branch Committees. In some co-operative societies there have been established Branch Committees, each representing the members habituallydealing at a particular Branch Store, and charged to exercise a general supervision over its operations. This was suggested in a former edition of the Model Rules by the Co-operative Union as a way of attempting to organise the whole membership. It was hoped that by instituting Branch Committees a larger number of members might he induced to take an active interest in the society's affairs ; and that the officers and general committee-men would get the assistance of local criticisms and suggestions. It cannot be said, I think, that such Branch Committees have usuallyproved very ucces ful. 17 In some cases they have been given up, sometimes because of their inanition, and sometimes because it was felt that particularlyenergetic local committees got special advantages for their own branches not enjoyed by branches unprovided with a local committee, or with a committee that did not function. In the extensive Lincoln Society, which had, in 1919, 19,245 members and altogether 25 branch stores, with sales amounting to £912,663, local committees of not more than nine members are elected annually for each of eight outlying branches. But I gather that ail but one of these local committees confine their activities to meetingabout every six weeks, and the eighth meets only monthly, in spite