88 IV.—CONVERSION OF ORDINARY BUSINESSES INTO
CO-OPERATIVE SOCIETIES.
(2.) For every sum by which such profits are 2\ per cent,
more than such 5 per cent., an additional sum equal to
1 per cent, of such wages; but so that the total amount
thus applied shall not exceed 5 per cent, of the wages
paid during such period.
The remaining net profits are to be divided into two equal parts,
one half to go to the employees of the Society as a bonus on
wages and the other half to the customers of the Society as
dividend on purchases.* The share thus allotted to the employees
is to be paid, not in cash, but in shares or payments on account
of shares in the Society.
By the rules Mr. Thomson was appointed to be general manager
of the Society during his life, but subject to removal by the vote
of five-sixths of all the members of the association and five-sixths
of all the votes capable of being given at a special general
meeting; and it is declared that he shall, as manager, “ control
all business carried on by the Society, and engage, remove, or
discharge all assistant managers, salesmen, or employees of every
description required to conduct such business, and fix their duties,
salaries, or other remuneration at such rates, and require them to
give security in any form approved by the Committee, as he may
determine, subject to the duty of regularly reporting all such acts
to the Committee.” It is also provided that Mr. Thomson, in the
event of his death while he continues manager, or his resignation,
may, by his will, or any instrument under his hand, appoint
such person as he may select to succeed him as general manager,
subject to confirmation by a special general meeting.
The Committee of the Society, whose functions, under the
circumstances, are mainly consultative, consists at present of
Mr. Thomson (ex-officio president), two employees of the Society
(a designer and a weaver), three representatives of Co-operative
Societies which hold shares in William Thomson & Sons, Limited,
one representative of the Huddersfield Trade Council, and the
secretary of the Weavers’ Association. This Committee meets
monthly; but those of its members who are employed in the mills
act as a sub-committee, meeting as required, and dealing with
questions of an urgent nature, such as a breakdown of machinery.
The share capital of the Society at the end of 1911 amounted
to £12,309, the loan capital to £11,931, the reserve fund to
£2,402, and the Assurance and Pension Fund to £582. ThG
number of employees was 121.
Out of the total (£12,309) of share capital, £3,950 belonged to
other Societies, viz. £3,850 to 44 working-class Co-operative
Societies, mainly retail distributive (Store) Societies, and £100
to Trade Union organisations and Friendly Societies; while
employees of the Society held £2,600: all but one of the
121 employees held shares, Mr. Thomson himself, as manager,
* Tbis dividend on purchases is paid only to the two Co-operative Wholesale
Societies, not to general traders, who prefer the usual terms of credit, &c. On
account of the arrangements which have been made as to co-operative purchases,
the exact equality between the share of the employees in the “ remaining net
profits ” prescribed by the rules is subject to certain variations.
