ealing with the profits. Earlier
"Stores" had divided these according to the capital contributed by each
member, or else equally among the members: the Rochdale Pioneers
determined that, after paying 5% interest on the share capital, all
profit should be allotted to the purchasing members in proportion to
their purchases, and be capitalized in the name of the member entitled,
until his shares amounted to L5. Thus each member found it his interest
to purchase at the store and to introduce new purchasers. The ownership
of the store remained always with the purchasers, and each came under
the magic influence of a little capital saved.

Growth of co-operative stores.

Not only did Rochdale store grow amazingly, but its example spread far
and near. New stores were founded on the "Rochdale plan" and old stores
adopted it; soon they were numbered by hundreds. In spite of many
failures there were in 1906 more than fourteen hundred such stores in
the United Kingdom, with nearly two and a quarter million members, over
L33,000,000 capital, and sales exceeding L63,000,000 in the year. The
number of societies does not increase of late years, the tendency being
rather for established societies to open branches, but all the other
figures increase rapidly from year to year.

These workmen's Co-operative Stores, or Distributive Societies, flourish
chiefly in the north and midlands of England and in Scotland, but are
found more or less all over the country. They, and practically all other
British co-operative societies, are registered under the Industrial and
Provident Societies Act, which constitutes them corporate bodies, with
limited liability, and fixes L200 as the maximum that any member may
hold in the share capital. Their government is democratic, based on one
vote each, for man or woman; and their members or shareholders, and
their committee-men or directors, are almost exclusively the more
provident of the working classes, or belong to the class just above.
Store societies are of various sizes, from the small village shop to the
greatest of them all, the Leeds Society, with nearly 30,000 members,
sales exceeding a million and a half sterling, and an elaborate
organization of branches and manufacturing departments. Their method,
the "Rochdale system," is as follows, subject to occasional variations.
Membership is open to all who pay a shilling entrance fee and sign for a
L1 share, which can be paid up out of profit. For the