CO-OPERATION.

New Zealand Mail, Issue 13, 22 April 1871, Page 1

CO-OPERATION.

Although this may be styled the, era of co-operation, yet co-operation as a great social and economic reform is but in its infancy,, By some the very notion is coldly received, by others it is viewed with distrust and alarm. The time is not far distant, however, when the system will be more fully developed, and its advantages commensurately increased and understood. The rival interests of consumers and producers, dealers and customers, will be fused together, and the 'principle of competiuseful in the earlier stages of civilisation —will beseen to be unworthy of civilisation in its maturity. That system is costly,^ : requiring many establishments to do* work more economically and efficiently done by one, and full of social unbappiness, and fruitful in the bitter feelings of rivalry and jealousy, because each establishment seeks its gains at the expense of the others. We may not live to see the day when.towns will supply themselves with groceries as they now do with water; but there are indications on every side of an increasing recognition of a principle, which will revolutionise our system of industry, and accomplish results fraught with a vast increase of happiness and prosperity to the whole community. Our municipal corporations are but bodies of directors of cooperative societies embracing the whole taxpaying community in their membership? Does a town want water? There are two ways of meeting the want: the first is by waiting an indefinite number of years (Wellington has waited thirty) till some private capitalist for the, sake of personal profit undertakes the supply. Yet bold and enterprising as he is, the venture is too hazardous to be commenced, until he receives such powers from the Legislature, as almost to make the supply of the greatest necessary of life a monopoly. The other way is when a company is formed with a capital apportioned in very small shares, so that nearly every householder is a niember. In this way the company will ensure for itself the largest possible number of customers, and so there is only one interest in the matter. But co-operation reaches its highest development when the corporation itself undertakes the supply. Here not many, but all householders, are both shareholders and customers. The profits are received by the citizen shareholders either in the lessening what they pay as customers, asisthe case in Nelson, or they continue to pay the same specific rates, and invest the profits in some other great municipal scheme, as is the case in Manchester. The mayor and councillors have greater advantages than any private company. ' They have not to make successive calls to'raise the 03cessary capital. From the borrowing powers of the corporation the required capital can be raised at once by borrowing on the security of the rates. Thev do not require to get permission from " the legislature, or any body it has called into existence, to open up streets, alter levels, or do the thousand and one things which such, works constantly require. Thev do not require to appoint separate officers as a company must do—no special collector for instance being employed ; the customers' accounts, ie., the water rates, beingchargedwith the other taxes m the same bill and paid at the same time, The public have the further advantage of publicity, the books of the company being, the books of the rate-, payers, always open to their inspection, and through their representatives in the council, any irregularity can be at once enquired -into,! and defalcations or malpractices promptly detected. .Last but not least, if the supply isjnadequate, they, have the privilege of grumbling without havingtheir supply arbitrarily cut off,, and if there is any'foundation t vl! lr dlssatisfacti °n they can bring to ,» bear such pressure through the,

press, public meetings and the 1 ballotbox as will sooner or later coinpei the directors,—-i.e., the corporation—to repair what is amiss, or supply What is defective. Let us now consider the case of a town where ,the supply is left (as some antiquated people still advise) to private enterprise. A private company is formed, whose interest it. is to make as much out; of tlje concern as possible. They charge the highest rates allowed by law, and where no maximum rates have been laid jdo.wn, as much as they please. The citizens may complain, but they can do no more. It may be said that high rates or inefficient supply will induce another company to come into the field, ana;the competition ensuing will ensure a better and cheaper supply. To this we answer that the evil must exist a long time,and roust come to a great height indeed, before, another company could be induced to start. The difficulty and .expense of getting the necessary powers, deter for many years those who have money to invest, and in small communities it is no easy matter to ra ; .se two companies with the capital required. But granted that two companies were raised, as they have been in London and other large cities. This implies (where one with a little increase,is sufficient) double establishments of all sorts- — double sets of machinery and works, double sets of pipes, double staff* of officers, double capitals on which interest is to be paid, and consequently the profits to the shareholders of each, or, in other words, a large portion of the community, greatly reduced. But this is not all. Experience teaches us that the prices of a water or gas supply are never perma?ientli{ kept, down, by the competition of tnese companies. They may try by lowering the price to ruin a newly formed company, and if successful they have the, field to themselses, but if they find it is too strong they soon come to an arrangementj and charge again what rate they please. So clearly have the advantages of this form of co-operation been demonstrated that upwards of eighty corporations in England and Scotland have bought out existing companies, the Imperial Government have given about seven millions for the telegraphs, and before many years are over they will have purchased all the railways. When we think of the many millions uselessly thrown away in legal and parliamentary expenses, and the enormous waste of capital and land, which could all have been saved, had the/principle of co-operation instead of competition been adopted by municipalities and the Government, we may congratulate ourselves that in New Zealand our railways and telegraphs have been made by the Government, and that the great colonising works on which we have now entered will be carried out on this economical principle. It is gratifying also to note that our municipal authorities are becoming, every day more enamoured of it, and that many municipalities, who have hitherto ignored it, are now clamoring for its adoption.

When a public convenience requires 'to be supplied on such a large scale as to render the advantages of competition almost unattainable, it is a prodigal wasteof the public resources to keep up several costly establishments when one would be sufficient. It is better at once *for the authorities chosen by the people to consider such supply as falling within the range of the duties of the office to" which they have been elected, and to provide accordingly. Such a course procures a public convenience far sooner, and in away that, must ultimately prove to be far more efficient and far more economical.