Other People's Money, and How the Bankers Use ItBrandeis, Louis Dembitz
History
Other People's Money, and How the Bankers Use It
Brandeis, Louis Dembitz
Banks and banking -- United States; Finance -- United States
Now, how are the directors of this great business chosen? Not by
England’s leading bankers, or other notabilities, supposed to possess
unusual wisdom; but democratically, by all of the people interested in
the operations of the Society. And the number of such persons who have
directly or indirectly a voice in the selection of the directors of the
English Coöperative Wholesale Society is 2,750,000. For the directors
of the Wholesale Society are elected by vote of the delegates of the
1399 retail societies. And the delegates of the retail societies are,
in turn, selected by the members of the local societies;--that is,
by the consumers, on the principle of one man, one vote, regardless
of the amount of capital contributed. Note what kind of men these
industrial democrats select to exercise executive control of their vast
organization. Not all-wise bankers or their dummies, but men who have
risen from the ranks of coöperation; men who, by conspicuous service
in the local societies have won the respect and confidence of their
fellows. The directors are elected for one year only; but a director
is rarely unseated. J. T. W. Mitchell was president of the Society
continuously for 21 years. Thirty-two directors are selected in this
manner. Each gives to the business of the Society his whole time and
attention; and the aggregate salaries of the thirty-two is less than
that of many a single executive in American corporations; for these
directors of England’s big business serve each for a salary of about
$1500 a year.
The Coöperative Wholesale Society of England is the oldest and largest
of these institutions. But similar wholesale societies exist in 15
other countries. The Scotch Society (which William Maxwell has served
most efficiently as President for thirty years at a salary never
exceeding $38 a week) has a turn-over of more than $50,000,000 a year.
A REMEDY FOR TRUSTS
Albert Sonnichsen, General Secretary of the Coöperative League, tells
in the _American Review of Reviews_ for April, 1913, how the Swedish
Wholesale Society curbed the Sugar Trust; how it crushed the Margerine
Combine (compelling it to dissolve after having lost 2,300,000 crowns
in the struggle); and how in Switzerland the Wholesale Society forced
the dissolution of the Shoe Manufacturers Association. He tells also
this memorable incident:
“Six years ago, at an international congress in Cremona, Dr. Hans
Müller, a Swiss delegate, presented a resolution by which an
international wholesale society should be created. Luigi Luzzatti,
Italian Minister of State and an ardent member of the movement,
was in the chair. Those who were present say Luzzatti paused, his
eyes lighted up, then, dramatically raising his hand, he said: ‘Dr.
Müller proposes to the assembly a great idea--that of opposing
to the great trusts, the Rockefellers of the world, a world-wide
coöperative alliance which shall become so powerful as to crush the
trusts.’”
COÖPERATION IN AMERICA
Public-domain text, read in full here on John Shaqi.
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