*86. Cooeperation in Production.*--But the greatest problems in the relations of modern industrial classes to one another are not connected with buying and selling, but with employment and wages. The competition between employer and employee is more intense than that between buyer and seller and has more influence on the constitution of society. This opposition of employer and employee is especially prominent in manufacturing, and the form of cooeperation which is based on a combination or union of these two classes is therefore commonly called "cooeperation in production," as distinguished from cooeperation in distribution. Societies have been formed on a cooeperative basis to produce one or another kind of goods from the earliest years of the century, but their real development dates from a period somewhat later than that of the cooeperative stores, that is, from about 1850. In this year there were in existence in England bodies of workmen who were carrying on, with more or less outside advice, assistance, or control, a cooeperative tailoring establishment, a bakery, a printing shop, two building establishments, a piano factory, a shoe factory, and several flour mills. These companies were all formed on the same general plan. The workmen were generally the members of the company. They paid themselves the prevailing rate of wages, then divided among themselves either equally or in proportion to their wages the net profits of the business, when there were any, having first reserved a sufficient amount to pay interest on capital. As a matter of fact, the capital and much of the direction was contributed from outside by persons philanthropically interested in the plans, but the ideal recognized and desired was that capital should be subscribed, interest received, and all administration carried on by the workmen-cooeperators themselves. In this way, in a cooeperative productive establishment, there would not be two classes, employer and employee. The same individuals would be acting in both capacities, either themselves or through their elected managers. All of these early companies failed or dissolved, sooner or later, but in the meantime others had been established. By 1862 some 113 productive societies had been formed, including 28 textile manufacturing companies, 8 boot and shoe factories, 7 societies of iron workers, 4 of brush makers, and organizations in various other trades. Among the most conspicuous of these were three which were much discussed during their period of prosperity. They were the Liverpool Working Tailors' Association, which lasted from 1850 to 1860, the Manchester Working Tailors' Association, which flourished from 1850 to 1872, and the Manchester Working Hatters' Association, 1851-1873. These companies had at different times from 6 to 30 members each. After the great strike of the Amalgamated Society of Engineers, in 1852, a series of iron workers' cooeperative associations were formed. In the next twenty