On the working-out of these two principles depends the future of co-operation. The example of Scotland probably throws light on the problem. There co-operative production, amounting to some millions sterling, is nearly all carried on by federations of consumers' societies, including the Scottish Wholesale, which apply more or less successfully the co-partnership principle--i.e. their employees are admitted to share in profits, and may become members, whereby they are further admitted to share in capital and control. The type of organization hence resulting is very much the same as where a society of producers admits consumers' societies to membership, and sets aside a proportion of the profits to be returned to them as dividend upon their purchases. To this combined type, we have seen, English productive societies, started by producers, have come; and it would appear that those started by consumers must ultimately tend to it. However, in spite of honoured leaders of the early days, the consumers' party is at present greatly in the ascendant in English co-operation, and even in the Scottish federations it is almost strong enough to abolish co-partnership, and allow no one to share in capital, profit or control except in his capacity as a consumer.

An association of co-operative societies and individuals, called the Labour Co-partnership Association, exists to maintain the principle of co-partnership in co-operation, and also to promote its gradual adoption in ordinary businesses. Some progress in this latter direction is being made, there being a tendency to improve upon simple profit-sharing by capitalizing the workman's "bonus," whereby he becomes a shareholder, and the business is gradually modified in a co-operative direction. There are remarkable instances of such modification abroad, notably that of the great iron foundry and _Familistère_ at Guise in France. The most noteworthy, among several, in England is that of the South Metropolitan Gas Company, where after eighteen years of the system 5000 odd employees had in 1907 more than £320,000 invested in the company; they also elect three of themselves directors of the company, this being one-third of the board. Unfortunately this example is, or at least was, marred by a feud with the trade unions, whereas there is friendship between trade unionism and co-partnership, as indeed between trade unionism and co-operation generally.

Encyclopaedia Britannica, 11th Edition, Volume 7, Slice 3 — Part 102