as some form of
co-partnership.

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 _Familistere_ 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 L320,000 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.