Co-operative Societies

The following transcription, made by Mélissa Martin for the Weston History and Heritage website, was taken from Pioneering Days of the Coalfields, No.14, by Brian J. Andrews for the Coalfields Heritage Group,  Dec., 2000, pp.1-8.    

This is a general description of the development of of Co-operative Societies throughout the Coalfields.  Weston NSW Co-op opened its store in 1912 as a sub-branch of the Kurri Kurri Co-operative Society and is featured on a separate page:     See Weston Co-operative Society 

No. 53

CO-OPERATIVE SOCIETIES

The British mining communities, particularly those in the north of England, were among the earliest supporters of what was known as the Rochdale Co-Operative system.

For the miners, who had long been to the forefront of militant working class activities, co-operative principles had a strong appeal, with the Rochdale type of society fulfilling a practical need.

Rochdale, a small Lancashire cotton town, established its model co-operative society in 1884. This model followed the principle of buying the best quality goods at wholesale prices, and then selling them to members at the current retail price.

All profits were returned to members as a dividend, which was proportional to the amount of goods purchased by the member, and not on the value of the shareholding.

Shares were purchased by members, which they paid off by making weekly contributions. Interest was paid on these shares at a fixed rate, which was in addition to the dividends paid on goods purchased.

For the British miners and their families who came to the Hunter Valley during the second half of the 19th century, they found here the same old primitive, isolated mining villages, with growing hostility between the miners and the local mine owners.

This brought back bitter memories of their former harsh existence.

Thus, the solidarity, the militant trade unionism, and strong belief in co-operative institutions that had been so much of their life in England, continued in their Hunter Valley mining villages.

Frequent disputes between the miners and mine owners encouraged early trade unionism in the Hunter Valley and during the late 1880s the co-operative enterprises grew, which the men used as a valuable weapon in their struggles.

The first two co-operative ventures, a retail society and a colliery, emerged during the era when the miners achieved district-wide solidarity, through the formation of the Hunter River Miners' Association, in 1860.

GRETA CO-OPERATIVE

In August, 1887, a co-operative was formed at Greta. This became the first, of three co-operative societies in the town over the years, all of which had only brief careers.

However, the small, fixed population of Greta offered little scope for co-operative enterprises.

Although most of the Hunter Valley co-operative societies failed during the financial troubled 1890s or the early 1900s, the co operative traditions did not die out, nor did the miners give up their faith in co-operative principles.

They carried their beliefs with them into other parts of the Hunter Valley, to which most travelled, and thus a new generation of co-operative societies began to emerge in those areas.

The majority of miners and their families, who left the Newcastle area during this time, moved inland to the districts between Maitland and Cessnock, to work at the new collieries being established in the recently discovered South Maitland coalfield.

During the early 1900s the population of the Kurri Kurri to Cessnock area, or the Coalfields, as it became popularly known, increased by 12,000, and by 1925 it had doubled again, by which time the new coalfields were producing nearly 70% of the northern district's total coal output.

The first area to experience this mining boom was Kurri Kurri, and nearby Weston and Abermain, where five new collieries were established between 1900 and 1906.

Townships rapidly grew up around these mines, and by 1910 they contained over 9,000 residents.

Cessnock was somewhat slower to develop than Kurri Kurri. Cessnock, although already in existence at the turn of the century, contained only 150 people in 1900. It began to grow when work commenced at its first colliery. Aberdare, in 1904, which was followed by the establishment of many other mines by 1925.

The first co-operative society to be formed in the new Coalfield area began operations at Kurri Kurri in 1904.

At that time Kurri Kurri was still very much a raw frontier town, with many crude hessian and canvas dwellings, few formed streets, no school nor church, and not even a permanent post office.

By mid-1904 the Kurri Kurri Co-Operative Society was already established, with 61 members and a share capital of £161.

CESSNOCK CO-OPERATIVE

From a very humble beginning, the Cessnock Co-Operative Society, not without its ups and downs, was to make tremendous progress during its first 50 years' existence.

During its time the Store became a tremendous asset to Cessnock and to those who carefully and systematically assisted the Society throughout its bumpy progress, bringing a sense of great satisfaction to all those involved.

The business was started in a small shop in Vincent Street, with a capital of £83, and its success was due to five original shareholders, who despite the sceptics. decided to launch the venture.

Despite a lean period during the great depression, the Cessnock Society continued to grow and expand, eventually catering for every requirement for its loyal members.

An idea of the benefits derived from the Store may be gauged by the fact that from 1907 up till 1955 (48 years), nearly £1 million was paid out in dividends to members.

IN THE BEGINNING

When Dan Howard was licensee of the Cessnock Hotel, in 1907, a few men with some previous experience of the co-operative principles began thinking of the possibilities for the emerging town of Cessnock.

They compared Cessnock, as it was at that stage, of course minus a co-operative society, with the towns they had recently left behind in England, where strong and vigorous societies existed, and the comparison cast a shadow, to the detriment of Cessnock.

As a result of their discussions, a meeting of enthusiasts was called on February 2, 1907, in the front parlour of Dan Howard's Cessnock Hotel.

Only five attended, and these were later referred to as the 'Big Five' of the Co-Operative movement in Cessnock.

Those who attended were...

Messrs John Hill,

William Pollard,

A.Dunn,

C.Shea, and

Dan Howard.

Their aim was commence a society in Cessnock, and this they did.

Each man, with the exception of a somewhat sceptical Dan Howard, placed £3 into a starting fund, making a total of £12.

Dan Howard was then elected banker for the society.

So enthusiastic and earnest were those present for the success of the enterprise, and after a full and detailed explanation, they converted Howard, who then added another £5. This brought the society's capital up to £17.

Further contributions were sought from residents till the amount reached £83. Then on February 29, 1907, the following committee were elected...

Mr John Hill (president),

Mrs Charles Shea (secretary),

Mr J.H.Kirk (treasurer), and

a committee of eight...

T.Coaldrake,

A.Biggers,

C.Saunders,

R.Plain,

C.Dunne,

T.Jeffries,

W.Howie, and

W.Rennix.

A strong horse and cart were purchased and the store was opened on May 1, 1907, under the title of Cessnock and Aberdare Co-Operative Society.

The enthusiasm of the pioneers was infectious, and, although, when operations commenced there were only 34 members or share-holders, with a capital of £143, and just the one employee, the progress of the society was phenomenal.

FIRST SALE – A  SHOVEL

In its service to the coalmining community, to which the Cessnock Society owed its life, its first sale was of a miner's shovel, bought by Mr Arch Sneddon.

The first grocery order was delivered to Mrs Murdoch, snr.

The first store in Cessnock was a small shop with a residence attached, on the site of the present Northumberland Hotel.

Despite its critics, the society saw increasing numbers of people joining, thus assuring its success.

The need for larger premises compelled the purchase, in November, 1907, of a 66 feet block of land, at the corner of Mount Vincent road (now Vincent Street) and Cooper Street.

On June 27, 1908, the president, Mr John Hill, laid the foundation stone of the front portion of the building.

When the building was completed, the membership had risen to more than 300.

When shown over the extensive new building, sceptics still asked, “But what are we going to do with such as building? We will never fill it in ten years!”

But still those far-sighted pioneers carried on, and soon again their progress was hampered by the need for further larger premises.

In August, 1912, new premises were erected, including a grocery outlet, a cellar with a concrete floor, as well as a bulk store.

New butchery premises were opened in 1914, which were considered at the time to be the most up-to-date in all the South Maitland Coalfield. It consisted of a large shop, cool room, smallgoods room, and an extensive verandah.

Towards the end of 1915 the society's foundation president, Mr John Hill, handed in his resignation. In a reminiscent mood, he pointed out the excessive charges in 1907, of a private dealer, as well as the inadequate services then prevailing which drove the pioneers to commence the society.

Mr Hill remarked on the internal trouble caused by dissatisfied shareholders and recommended that all who had any doubts concerning the proper working of the Society, should put up their hands and make some effort to find a place on the Board of Management, which would certainly enlighten them and banish all doubts.

Because a good deal of dissatisfaction existed, the Society, in its wisdom, in August, 1915, appointed Mr James Hill, as Managing Secretary of the Society.

He held this position until December, 1921, when, on account of the rapid progress of the society's business, the shareholders saw fit to amend the rules, creating two positions in place of one.

In March, 1922, Mr A.W.Thompson, was appointed Secretary and the Managing Secretary's title was changed to that of General Manager.

BELLBIRD STORE OPENED

The claims of the shareholders living in the progressive village of Bellbird, were met by the opening of a branch store on July 4, 1917.

During November, 1916, a branch store was also opened in Kearsley, named in honour of Mr William Kearsley, one of the society's first auditors.

By following the Society's progressive society, an up-to-date branch was opened at Aberdare, on the corner of Northcote and Mulbring Streets, on May 20, 1919.

Realising the need for even further expansion, the Society, towards the end of 1921, purchased a large block of buildings at the corner of Cessnock's Vincent and Hall Streets. At the time the buildings were known as Lane and Quinn's Ltd.

These premises, which occupied three blocks of land, cost £8,000, and, after extensive alterations, cost nearly £10,000 altogether.

The building was 200 feet long and 65 feet wide, and consisted of a bulk store for produce and groceries, a grocery department, and a very large provisions counter, which shareholders considered to be the best equipped grocery and provision department in Australia at the time. In 1930, a large cellar was completed beneath the building, which provided a further additional storage area.

The march of progress, development and expansion continued in March, 1923, when arrangements were made to build a butcher's shop at Bellbird.

Then the managing committee decided that the Society should have its own bakery business. A sub-committee comprising...

Messrs T.Teggins,

J.Harle,

W.McBlane,

J.E.Gamble, and

J.J.Hill, General Manager,

were appointed to make arrangements to build a bakery fully equipped to cater for the members' requirements, and at the same time make provision for future extensions.

Inspection visits to bakeries at Maitland, Newcastle, Sydney and Lithgow, when valuable information was gained, enabling the building committee to come up with an excellent bakery for Cessnock.

The bread and pastry bakery consisted of a two-storey brick building, 94 feet by 70 feet. It was officially opened on November 15, 1924.

REMARKABLE PROGRESS

The Cessnock Co-Operative Society made tremendous progress in its first seventeen years, from 1907 to 1924.

In 1908, it had a membership of 108, with five employees, and sales totalling £5,201 per annum.

By 1924, membership had risen to 2,359, it had 132 employees, and sales totalling £336,446.

Sales had even reached as high as £337,184 on one occasion during the period, whilst the greatest amount paid out in dividends to member was £38,766 in 1924.

As a result of the great depression, sales gradually decreased and with it came a proportional decrease in the number of members and employees.

At the height of the Society's prosperity, its membership rose to 4,604, and sales reached £776,666 for the year.

CHALLENGING COMPETITION

During the 1960s, all of the various co operative societies were under growing pressure from increasing numbers of suburban shopping centres. as well as large specialty, grocery and electrical retail chains.

All co-operative societies increasingly lost the patronage of the younger, higher spending sections of the population to these rivals, but as business was still steady, they failed to recognise the seriousness of the problem until it was too late.

They had, after all, survived serious challenges from the 'Cash and Carry' stores of the 1920s and 30s, and there seemed to have been a somewhat complacent belief that they would also survive this latest challenge.

There were, however, factors in this new situation, quite apart from the growing apathy of members, that differed from those of earlier problems the society had faced and overcome.

As economic conditions changed and the long post-war boom gave way to recession, the societies frantically tried to make up for lost time.

Kurri Kurri, for example spent $100,000 on extensions to its main premises and closed down its uneconomical branches at Weston and Abermain.

In 1974, Cessnock began a huge programme of renovations and extensions, involving the introduction of a new cafeteria, plant nursery and a new grocery supermarket aimed, in its manager's words, at providing 'one stop shopping for Cessnock residents.

However, all this frantic activity not only came too late, but also failed to solve the co-operative society's real problem, the disinterest of consumers.

Of all the post-war societies still going, the Cessnock Society was the first to break down.

In late 1975 its shareholders agreed at an amalgamation with the Newcastle and Suburban Co-Operative Store, to come into effect during August, 1977.

In the meantime an interim Board was appointed to overhaul the Cessnock Society's operations in an effort to improve trade.

Finally, in 1980, the co-operative system of retail stores came to an end with the demise of the Newcastle 'Store'.

In their time the various co-operative stores throughout the Hunter region served their members well, sticking by them throughout bad times, and taking their dividends into consideration, provided them with a good discounted service.

However, failing to compete with progress and the big corporations, they can now only be looked back upon as an important phase of our rich heritage.

[Transcribed for the Weston History and Heritage website by Mélissa Martin]