Within the last few years the progress of the Civil Service Supply
Association in London has been so extraordinary that a few words
concerning it may not be uninteresting to our readers.
The object of the society is ‘to carry on the trade of general dealers,
so as to secure to members of the Civil Service and the friends of
members of the society the supply of articles of all kinds, both
for domestic consumption and general use, at the lowest possible
price,’ on the principle of dealing for ready-money. Co-operation on
the broadest scale of retail shop-keeping is brought into play. The
organisation consists of three classes of purchasers: the holders of
shares of the value of one pound each, and from whom the committee of
management is chosen; ordinary members, who being connected with the
Civil Service, pay two shillings and sixpence a year; and outsiders,
or mere supporters of the concern (who, however, must be friends of
members or shareholders), who pay the sum of five shillings annually.
All have the same advantages in the purchase of goods, but members of
the Civil Service have the privilege of having goods above a certain
amount delivered carriage free. As the thing stands, the number of
shareholders is limited to four thousand five hundred.
The constitution is a little complex, and to the non-initiated, perhaps
not very rational; let it, however, be remembered that it is not
so much a business concern, as what may aptly be termed a ‘benefit
society;’ and if the objects of the society when it was started in 1866
have in late years been deviated from, it is more from the excessive
growth of the institution than from any other cause. The Association
has from less to more assumed truly gigantic proportions, and now
takes rank as one of the wonders of the metropolis. The headquarters
of the Association consist of huge and handsome premises in Queen
Victoria Street, ‘City,’ the lease of which, subject to a ground-rent
of one thousand four hundred pounds, has been purchased, and which,
together with certain additions to the building, has cost no less a
sum than twenty-seven thousand pounds; but such is the increased value
of property in this locality that they have recently been valued at
thirty-two thousand pounds. On the ground-floor of this building,
groceries of all kinds, wines, spirits, provisions, cigars, and tobacco
are sold, forming three departments. On the first, all goods which come
under the terms of hosiery, drapery, or clothing, besides umbrellas and
sticks, are the articles of sale, forming two departments; and on the
second floor, commerce is strongly represented by stationery, books,
fancy goods, drugs, watches, and other miscellaneous goods, forming
three departments. The third floor is appropriated for the offices of
the clerks of the Association, who form a large staff, and for storage.
For the accommodation of West-end customers, an emporium in Long Acre
was until recently used; but that becoming too small for an increasing
trade, the Association has built commodious premises in Bedford Street,
Covent Garden, costing twenty-five thousand pounds, whither the Long
Acre business has been removed, and the arrangements of which are
the same as at Queen Victoria Street. Not content with these, the
Association has taken large premises at the back of Exeter Hall for
storage purposes, as well as for the sale of various new articles and
the carrying on of the tailoring department.
It is not a little astonishing to know that a society which originated
in a very humble way indeed, has developed its business so much within
little more than ten years that it requires more than six hundred
_employés_ for the furtherance of the concern. The secretary, who is
the chief of this staff, has several clerks under him; and besides
there are accountants, a treasurer, several storekeepers, clerks,
assistants, cashiers, &c.—a body which costs the Association nearly
fifty thousand pounds annually! The direction of the whole concern is
vested in the hands of the committee, which numbers fifteen; and the
shareholders participate in the management so far as they are the
constituents, so to speak, of the committee-men, the election taking
place once a year, when five of the body go out in rotation. It may be
added that there are likewise auditors, bankers, and other officials
requisite to a society of this kind; and that the necessary managerial
business is transacted at the ordinary meetings of the Association,
twice a year.
The Civil Service Supply Association is said to take rank now amongst
the largest buyers and sellers of this country, a circumstance we need
not be surprised at when it is stated that the sales from the first
year of the society’s establishment to August 1877 amounted to upwards
of six million pounds sterling; and the wonderfully rapid increase
of the business may be judged by the fact that the sales of the
Association, which in the first year (1867) amounted to L.21,322, in
the year ending August 1877 reached the large sum of L.1,041,294. These
figures are valuable in demonstrating the unprecedented success of this
extraordinary Association, a success mainly due to the large body of
members by which the Association is supported. Last year the number
of clients was twenty-five thousand, including the four thousand five
hundred shareholders already referred to. Last year each shareholder
had the privilege of nominating two persons for membership, by which
nine thousand outside members or subscribers will be added. We are
further told that there is always a mass of applicants for admission to
the Association, many of whom have been on the books of the society for
years, unable to procure tickets.
Cheap goods being the main object of co-operative associations, we
will now say a few words regarding the prices charged. At first the
benefit in this respect was very appreciable; but as the society has
increased, the benefit has, as a natural consequence of a corresponding
increase in working expenses, to a certain extent decreased, and it may
be added, is in many cases very variable. While on certain articles,
such as fancy goods, drugs, perfumes, and the like, the reduction is
considerable; on others again, such as tea, sugar, butter, and the
like, which are of more common use, there is but a trifling difference
between the Association’s prices and those of the retail trade. This
seems rather to defeat the true objects of co-operation, which are
expected to convey benefit more in respect of articles of general
consumption than of those much less necessary for common existence. The
variableness of reduction arises probably from the fact that goods sold
at little profit by shopkeepers are also not to be sold much cheaper
at the stores; while the goods on which most gain is made at shops are
those on which the Association can afford to make large reductions;
but by a strange fatality, they are, as a rule, the very articles less
required than any others by the members of the society.
In calculating prices the committee deem it necessary to act so as
to be on the safe side in case of any error that might arise. On an
average, the prices charged to members are at the rate of ten per cent.
above the wholesale prices, thus allowing a profit to defray working
expenses, which are about seven and a half per cent. This allowance
has always proved a generous one, for besides covering the annual
expenditure, there has always been an important surplus.
For some years this surplus was allowed to accumulate, it being thought
that it might probably prove useful as a reserve fund; but when it
reached the large sum of nearly one hundred thousand pounds, it was
plainly apparent that steps should be taken to dispose of it and all
future surpluses. As concerned the foregoing sum, the rules of the
society according to the act of parliament under which the Association
is incorporated, rendered appropriation of it in any way impossible; it
was therefore set apart as a reserve fund, invested in the buildings,
stock, &c. of the Association; but a new set of rules was formed by
which all profits accruing thereafter were to be divided amongst the
shareholding body, and placed annually to the credit of each, to be,
however, only withdrawable by their relicts after death, or when the
accumulations on any share shall amount to one hundred and seventy-five
pounds, when, in order to comply with the provisions of the Provident
Societies Act, which limits the funds any member may have in a society
enrolled under its provisions to two hundred pounds, the excess must be
withdrawn. This arrangement, which was duly legalised, and came into
force in March 1874, naturally gave the shares a far greater value
than they had hitherto possessed, as will be seen from the fact, that
from the date mentioned to August last there has accrued very nearly
one hundred thousand pounds. If the profits continue at this rate, the
shares will of course increase in value each year, and already—since
recent alterations in the rules have made them transferable and
saleable—shares have been disposed of for sums varying from twenty to
thirty pounds each; hardly a bad investment, comparatively speaking,
for the sellers, to whom they cost but ten shillings, the rate of
interest being eleven hundred per cent. per annum! This large profit
is, however, considered by many to be a really objectionable feature,
and at variance with the principles of the Association, namely, ‘to
supply articles at the lowest possible price.’ We believe this view is
entertained by the Committee of Management, who are about to take steps
to have the high rate of interest reduced.
Seeing that a large annual profit accrues to the Association, and
causes an embarrassment, the inquiry naturally arises—why not lower
the prices of articles so as to leave no profit whatever? There are
various reasons, as we understand, why prices cannot be lowered beyond
an assigned limit. The profit on small quantities of articles is, as
has already been stated, so infinitesimally meagre as to admit of no
sensible reduction. And in many cases it is important not to make such
reductions as would trench on the business of wholesale dealers; there
being, indeed, an apprehension that customers might purchase articles
not for their own use, but to sell at some advance to retailers and
others. After all, the profits arise more from the average gain than
from a charge on the respective articles.
It was to be anticipated that retail dealers would be bitterly
antagonistic to the Civil Service Supply Association; and so steady and
sturdy was their opposition, that in its first years the Association
experienced considerable difficulty in persuading wholesale houses to
deal with it. Indeed large orders were the only inducement by which
these houses could be got to supply the goods required, and even now
we believe some firms hang back. The transactions of the Association
have, however, operated upon members of the retail trade, who finding
their business affected, have in self-defence been forced to reduce
their prices to the general public. It thus becomes apparent that the
Civil Service and other kindred co-operative associations have directly
benefited the masses, by inducing a general lowering of the cost of
many articles of daily necessity.
As an instance of the difficulties and jealousies which have from time
to time beset this beneficent institution, the committee for a long
time found it difficult to get and retain good tailors, who as a rule
disappeared in a mysterious manner. These difficulties have, however,
with patience and perseverance, been overcome, and the tailoring branch
has become very successful.
It may here be mentioned that all goods purchased at the stores must
be described in the form of an order, which has to be examined and
checked, and payment always made to properly constituted cashiers
(never over the counter), before the receipt of the goods. Large orders
undergo a thorough and strict examination, to see that the goods are
for the legitimate use of the applicant member or shareholder, with the
view of defeating any improper interference from retail dealers.
In its present successful condition, to which the Civil Service
Association has so rapidly attained—the clear assets amounting in
August 1877 to one hundred and ninety thousand pounds, after all
liabilities had been paid—there are few things which cannot be obtained
at or through the medium of the stores. It were a futile task to
attempt even an approximate estimate of the goods that may be bought in
this manner; suffice it to say that each and all are duly chronicled
in the Association’s Price List. This list, which is issued once
every quarter, is no bad criterion of the success of the institution.
When it was first issued, the contents covered no more than a small
single sheet; now, however, it is a thick book of nearly three hundred
pages. It is not only a record of all goods sold at the stores, but
also contains the names and addresses of the various firms which have
entered into arrangements with the society for selling their goods to
members at a discount varying from five to twenty-five per cent.; and
besides, a large portion of the volume is occupied with advertisements,
which doubtless form no inconsiderable source of profit to the Civil
Service Supply Association.