or in part. This divides co-operation into three kinds—co-operation where the workers merely have a share in the profits; co-operation where the workers share in the control and the profits and losses, and co-operation where capital merely concedes certain incidental advantages to labor. Co-operation is also divided into kinds—distributive co-operation, and productive co-operation. The first concerns itself with the distribution of goods of various kinds, in such a way as to bring the dealer and purchaser into close business co-operation, and includes co-operative purchasing companies, and co-operative stores, mills, and retail shops of all kinds. Productive co-operation implies the union of laborer and capitalist in some manufacture or productive pursuit. Working a farm and garden on shares is an instance of complete co-operation. The land owner contributes his land, which is his capital, and the worker contributes his skill, and the labor of his horses and his hands, and the use of his tools, and both share in the resulting harvest.
Another instance may be found in the equipping and manning of vessels in Great Britain and elsewhere, and particularly in our Eastern States. A number of people, farmers, sailors, mechanics, women, contribute their savings, build, launch, and equip the schooner, and each receives a certificate of stock in the craft. Some of them ship as officers or men, and offer places to others, for the voyage. Fishermen and sailors are taken on shares, and the crew is made up. The schooner sails and makes a trip to the Grand Banks. On returning, the catch is sold for so much cash. The expenses are taken out, and the balance is divided pro rata among crew and owners according to agreement. This is real co-operation. Capital contributes the boat, lines, stores, and bait. Labor contributes its labor and skill. No wages are paid, but each earns his share. In fact, it often happens that all the workers are also owners. In case the voyage results in loss, the sailors lose their labor, the owners lose the interest on the money invested. If boat and crew are lost, the widows draw their life insurance, the owners have their marine insurance.
Participation in the profits that result from any manufacture in which labor and capital are employed together, that is, the giving the laborer a share in the profits, with or without wages, and with no share in the control of the business, and no liability in case of loss, is the most simple kind of co-operation, and has been tried with success in every branch of business. Stores that give their salesmen a percentage of the profits, mills and foundries that divide a portion of their earnings among the workers employed in the business, illustrate this useful and readily understood co-operation.
Capitalists who of their own accord have given to the labor they employed certain advantages in the way of houses, rents, educational, social and domestic facilities, have shown what can be done in this interesting department of co-operation. Instances may be found in nearly every branch of business, and in every instance of any magnitude we believe it has been proved to be a mutual benefit to both capital and labor.
It is the purpose of this paper, and perhaps of others, to examine these various kinds of co-operation, and to see how far each may be of value in solving the capital and labor question. It is proposed to examine a number of actual experiments in the various phases of co-operation, to consider the causes of their success or failure, and to discover, as far as possible, the best methods of procedure in each. It may be incidentally mentioned here, that there has been a very great variety of experiments in this field. Some of these have been visionary and absurd, some have been badly conceived and improperly conducted. Others have been eminently just and wise, and have failed through distrust, a want of patience, or a lack of common honesty among the members. Others have endured for years, have survived panics and dull times, and have been sources of great profit to their members, be they capitalists or laborers. Some have been of great moral as well as material benefit to both parties, teaching the one justice and the other patience. From each experiment some lesson may be learned.
The most radical form of industrial co-operation is that in which the workers are the capitalists, the men or women who perform the labor having contributed the money whereby their labor is paid or made productive. Many experiments have been made in this direction, both here and in Europe. The great majority of these experiments have been failures. To discover the reason of this involves the examination of many questions in social life, business, and education, which may be eventually considered. At first it may be better to examine the actual working plans and methods of a few really practical and successful co-operative
