The New York Herald Newspaper, January 19, 1869, Page 8

YORK TERALD, TUESDAY, JANUARY 19, 1869.—TRIPLE SHEET. - - ‘ nstommers fraudulent diversions of the soctety’s funds wilt bat | will ca cre’ etlamoment of he pa} THE CO-OPERATIVE SYSTER. Beliner had rendered» the, See eat he ra re; bt | meagre eap tal as yot aod advancing slowly. Dat el Tis?hereatiaw ‘of tho, tettatde the Conre now The Great Labor Question Solved Shae] Sevetial us Selan Saeematee Seentetne fiver che apn of the our urchin an exact by Self-Zelp. 18 WORKINGMAN OWN CAPITALIST. Eastary of the Co-Operative Movement in England and on the Continent. What Is Being Done in This Country. Dr. Rossbach, in his work on the “History of Poll- tical Economy,” refers to the lamentable result which, with all its hamanizing benefits, the pro- gressing industrial development has wrought. It 1s, he says (on page'285), ‘a peculiarity of all highly civilized nations—a lamentable sediment of civiliza- tion itself—already complained of by Demosthenes and the prophets, which founa expression in the exactions of Roman proconsuis and in the outcry of the starving masses, as whoge patrons the Grac- chi appeared, which is there represented tn a Varro. and here tn a Catilina and which is found in the in- creasing wealth of the few and the impoverishment ofthe many. This impoverishment of the masses Is ‘the disease also of our day, the deepe-t soeial wound, Breying on the life of the future and threatening the peace of the present—a wound to neal which Eng- land now already spends £8,000,000 sterling in useless effort, and which eats deeper and deeper into the life organism of society.” And further on (page 399) the same author ob- serves:—“From all that the present affords us we observe two great evils attending our industrial de- Velopment—the one is insecurity of maintaining life, the other demoratization. The dependence of Wages on the will of the emplover, stoppage in the Course of trade and manufacture, a crisis, an inter- Tuption of the great intercourse of the world ex- pose the workingman to want and deprivatio his home and family life is destroyed, and moral degradation follows.” “Oapital, division of labor, factories, machinery, deprive the trades more and More of their independence and force the trades- Man into poverty. Seeing his trade mercilessly lost he leaves bis small worksnop to earn a precarious living in the great workshop of the factory as a Jaborer. And thus we naturally come to another great question of our times—the labor question.” Dr, Rossbach is undoubtedly right 1n calling this one of the great questions of our times, The cond!- tion of the workingman, his relation to his employer ‘48 well as to sociery, as being gradually wrought out by the centralizing tendencies of modern age, are a Sore spot on the industrial body politic. It is not, however a newly discovered disease. Only it is growing worse by the increasing development and ts more and more feit, Hence the need of a check to this disease has also increased from year to year. And many were the projects proposed, and some actually attempted in practice, to ameliorate the condition of the workingmen, and in some instances even to rebuild on new toundations the whole sys- tem of human society. However well meant, how- ever benevolent the spirit prompting these plans, mos’, if not all of them, were illusory, and therefore impracticable. Most of these had their origin in France and it is onty required to refer to “Fourier- ism,” “Cabetism,” “St. Simonism,” to show the Visionary means adopted to cure the evil, the eure itself being worse than the disease. Even the Z/ Union Ouvriére (proposed in 1844, intending by ‘the contribution of two francs annually by each man- wal laborer in France, estimated at five millions, and hence with a sum of ten million francs, or two million dollars annually, to establish and maintain @refage for worn out and infirm workingmen under the name of “Le Palais de L'Union Ouvriere”) failed, for it was considered a will scheme and de- rided; and by none more than by the workingmen themscives. While Louis Blanc was a member of the Provisional government of France nq carried bis pe- ealiar doctrines of the “droit du travad”—the right to work—and of the organization of labor into ex- ecation In the a/eliers nationauz, or national work- shops. But it did not last long, for the maintenauce of the workingman at the expense of the whole peo- Die, tarning the State into a great manufactoring agency, competing with and destroying private in- Gustry, soon became so o-ious that it died of its own mo ity. But it is not the Purpose of this articie to detai) the many plans and attemp's made thro ghout the world towards cle- ‘Yating the condition of the workingman, and which successively failed. These form part of the social history of mankind, and any one curious to study the gradual progress of development im this regard end the great number o: grievous mistakes which Weil intent.oned people o' make will find them — rded in the iy Oye iy political economy aad social science. present it is proposed to give @n extended notice of the aystem + al ” CO-OPERATIVE SOCIETIES, as those have come into vorue in Europe and here, showing its undemabie beneiits and tue dangers to Which it is Often exposed. This system has as yet found @ more extended development in Engiand and Germany. in France the Tigor of the dowesiic administration of the Second Empire has rather Proved a hindrance to the growth of these societies: and !taly and even Russia lave lately begun to cul- tivate them. Tis ROCHDALE socrery. “Co operation,’ says a writer on “Co-operative Societies” in Licekoood's Magazine for , 1367, “jor the purpose of offence or defence is as old aa cy » Wutle co-operat.on for the purposes of trade is almiost as old a4 civiitzation, Under the name of partnership the idea of co-operation has long been ‘amiitar.’? Not wishing to stop to criticise tis too much matter-of-fact definition ot the princtples of Co-uperative societies, it 18 but just to quote tne opin- fon of tuis high tory journal of England that the beginoing made by some workingmen im Rochdale “was destined to have grea’ resulta, not only on the fortunes of those who humbly and timidly inauzo. rated the movement, but on those of the working Classes generally throughout the most populous in- usir al districts of tne kingdom.” bm now generally conceded that this begianing in Rochdale was, in irath, the commencement of an eminently practical system for @evating the mental, moral, and physical condition of the not any outside workingm: b: aid or chartiavie ~ by the State or imdi- vi \uals or wealthy sucicties, but by cultivating in Aimeelf the habit of prudent self-reliance, w Lowi Quarteeriy Tor October, 1864, in of workingmen’s benefit societios, justly regar's as one of the principal needs of our time, aa “every intividual, however hambie bis social position may be, Is the better for knowing and feeling that his happiness necessarily depends in LW poe measyye upon his own industry, economy an ovudenc™.”” And tt is becanse these societies “are calculated to Cherish the habit of genuine self-reliance and sei!- respect” that they are “considered eminently ‘Worthy of public encouragement.” The id and, im ali truth, astonishing results following the re- markably small be ise at Rochdale only twenty- five years ago, and the evident benefits conferred by them upon the working classes wherever this sys- mas beea adopted fully justify tuts high com- smendation, 8 ‘rom the German work of Ragene Richter npon the history and development of co-operative stores @ full knowledge of the diMicuities and gradual rise ‘Of this first co-operative society may be gathered. It S@ppears that ta November, 1843, a uumber of Weavers occasionally met at Rochdale to consult to- ther as to the best means to better their condition. @ were for the usual resort of dissatisfied work- fugmen—thut is, etrikes, Bat this was discussed tn every aspect and finally id by the more senal- bie men, who succeeded in prevailing npon a num- ber of others to join with them and try whether they could net get higher wages, or make what they did eo ér, When this was agreed upon as the lerlying principle on which to proceed a paper ‘Was drawn up snd twelve men signed thetr names, @greeing cach to pay twenty pence per week into the eommon fant, They named themselves “The Rooh- dale Society of Equitable Pioneers.” “oon after the mine of this new society Was issued, substan. iy as followa:— ‘The object of this society is to devise euch exnettents ne hall it to tte members, and at the mame me resufito hetr cavantag ag incividdale und as members of the git Barauance Of thie objeot the society col. tects its members with which to carry out the following designs :-—First. the erection of Siaioss, groceries and clothing materials; eco: ing or & pumber of houses, ere may ‘find C3 at euch mem: ft more convenient 1 ve Aogecher ; third, the = as of wach tae ork In the course of @ year the society collectea from ineiabers the sum of twenty-eight pounds sterling, OF About $140, and with this siaall sum they coi- cod Work and opened their store in Toad lane, on the ist of December, 1644, Thirteen pid had been expended for rent, fixtures and re, leaving for the purcuase of stock fifteen pounds, or seventy-five dolinrs. With this slender capital they laid in, at wholesale prices, a stock of ane very bos’ groceries and provisions, and as they were goo jriges of the aricies to be procured, paid ready wouer for evervising, and promised, tf SF £97,819, ($497,445); and veoh renee ly. represent an astonishing do not give all, Connected with vision store these Rochdale in 1851, @ corn mull, which in 1805 was running fifteen stones, doing a business of £148,533 ($742,695), with a prot of £14,511 ($02,555), ‘They aso commenced the manufacture of clothing, to provide their members beg meat and other ar- ticles, in which again @ capital of £91,000 ($455,000), had been invested in 1865; the receipts ol there branches for the last three months of 1363 are re- ported as follows:—£#3,440 ($17,200) in the drapery department, £426 ($2,180), In the tailoring depart- ment, £037 ($2,685) mm the shoemaking cepartwent, £5,596 ($27,950). im the buichers’ devartment, and £2,103 ($10,515) in the pork butcher’s depariment. Besides, this society maintains g library, a reading room, schoolrooms for the young, and a certain per- centage of the annual proiits are set apart for the Educational fund. The rapid increase of capital in this society is own by a& tabular statement in the “social Science Traets” of Messrs. Chambers, where, from the books of the Pioneers it appears that one man, who became a member in November, 1850, by tle payment of one svilling and paying nothing additional, hud standing to his credit m December, 1840, over £95 (3490). ac- crued interest and dividends on his share, after hav- ing drawn out £6 ($30; in 1856, OTHER SOCIETIES, As soon asthe unexampled success of this Pio- neer society became known, during the first few years of tts existence, similar associations were Jormed in other places and soon al! over England, In 1858 tue “Rochdale Co-operative Manufacturing Society” was founded, declaring it to be their object “to iimprove the social and domescic condition of its members, and to encourage among them a spirit of honesty and fair dealing by raising from their voluntary subscriptions a fund * * * for carrying on in common the trades of cotton and woollea manufacturing.” The nominal capital was fixed at £50,000, or $250,000, in shares of £5, or $25 each; bat before this amount was subscribea they rented part of a cotton mill and began work, and in 1865 they soid of their own manufactured goods to the amount of £133,935 ($659,925), and their actual cash capital Was £64,000 ($320,000), owning @ mill ballt by them- selves, ‘the “Halifax Work! n’s Co-operative and Pro- videat Society,” founded in 1849, is aiso in a very flourishing condition, The building erected by them for their uses, at an expense of £15,000, or $75.000, contains @ butcher's, a provision, & boot and s! a Been eres, & groce:’s, a woollen — # taulor’s shop, a!l managed by the society, A paper read before the E i Association for the Promo- tion of Social science, in 1364, speaking of the store- cooms and magazines for ‘the storage of goods, of the coffee rooms for the male and female members of the society, the reading rooms, dining and smoking rooms and the ofces of the managing coin- mittees of the society, saya that everything is as dainty ‘as a committee room at the Re.orm Ciub, The secretary's offices are as convenient and substantial a3 a bauker’s; hot water pipes ran through every room in the building; ventilation ts everywhere pro- vided for, Througuout the whole edifice there 18 no sign of poverty or makeshift—notning ts mean or second hand. Hverything ts as stately, a3 compiete, as opulent as a railway or government oiice.” This fociely, moreover, rents a large farm, about a mile from town, worked and operated by the members for their common benefit, and here they congregate every summer, with their wives and children, about a souls, and hold their convivial gatherings and plenics, In 1563 an act of Parliament required all these co- operative associations to make a report of their rules and by-laws and of their yeariy business in detail to the Registrar of Friendiy Societies. who. reporta again to Parliament. For the year 1466 Mr. Tidd Pratt, the registrar, reported from the data thus furnished nim, that there were in existence in the United Kingdom, at the ciose of that year, 678 of these societies, of whica 240 had neglected to send in their report for the year. Of the 446 who complied with the law the following totals are made up:—Total number of members, 172,424; amount of share capital, £1,048,096 f 240,450); loan Capital, £118,023 ($590,115); trade hablitties, £334, 561 ($1,672,805); the amouni of goods soid for cash, £4,455, 546 ($24,277,980); the assets and property held by the societies at the end of the year Was £4,009, 249 ($20,043,245), and the cash on hand, £192,803 ($964,015). The whole expense of managing ain of trade was only £235,454 ($1,177,270). Since their report for 1866 it has been authoritatively stated that 264 additional co-operative societies have been formed in Englan: among them a Wholesale store association for the north of Eng.and, placed under the management of the Rochdale Pioneers, who furnisa the smaller Societies the merchandise they need at whole- sale and with @ siight advance on the original cost. This association furnishes to 166 societies on an average about £300,000 or $1,500,000 of goods, WiLh @ Successive increase of £50,000 or $250,000 per year. A still later account, not oilicial, however, was made public by Professor Wuber, a German, who traveled extensively in England, solely to inform hunself of tie condition of co-operative societies in that country for use in Germany, and be states the fber of societies at about 1,000, their members at ith @ cash working capital of £1,500,000 or and an annual trade of about $25,000,000. which can realize such marvellous ro- ourse of only twenty-four years, begin- zn ist of December, 1344, with a capital of tweaty-elgbt pounds or $140, must have all the ele- ments of success within it and proves itseif the best pracdcal method yet discovered for the benedit of woraingme OPERATIVE SOCIRTIA’ CY GERMANY. Outside of Engisnd the co-operative system has nowhere prospered to the same extent as it did in Germany, although in reality the co-operative prin- ciple has been transferred to another field, from Which it seems to be excladed in England by acts of Parliament. A report was made by Mr. Herman Schuiwe, delegate to the Social Science Congress den, xony, in 1863, stating that 1,200 co-operative socteties in actual work- in Germany, with 350,000 members and a nominal capital of 31,000,000 thaiers, or 3 ,, doing an anntal business of over ($59,500,000) and owning 59,000) Of private property. leties, with such vast capital are comparatively but few the bulk of them in England not over 160 of Uke 1,200 being at the time mentio (1863) consum, vereine, or Consumers’ unions, the bulk belng credit and labor associations, sowe- ‘ning in the navure of joint stock or deposit and savings banks, in which the depositors were alike the stockuolders and the recipients of loan accom. Inodations. Since then the number of these societies bas largely increased, 6o tha n the civil officers of the goverument at Vienna har formed & co-operative store society and maintain their grocery and provision stores in that city, hav. log done 4 business during the year 1465 of 000 thulera ($01,000), Which speaks pretty well for a'be- ginning. Since 166 similar socicies have been Springing Up in every cy and considerable village, and iu many ciiies there are several—in Berlin alone over twenty-flve—which together form a kind of branch of the great German Co-operative Union. In fact since the uster failure of the agitation began in Germ: by Ferdinand jasaile, in 1843, in favor phones tection to labor—soimewhat in the nature Of the utopian pianos of the French school of social. ista—the aystent of co-operation in every branch of indastry {8 making very rapid progress among the Germans, and at present there are in existence no less than 116 socleties for tae wholesale purchase of merchandive and tts distritgution to societies, IN PRANOR, ITALY AND RUSSIA, liar system of government which Nepo- Jeon iT. t broduced in la belle France and the ciose-fated Ughtness with which he maintains it prevent any lopment of the co-operative systern origmated, managed and maintained by working. men exclusively in that country. This ayatem quires for 11a growth freedorn from exceasive govern- mental restriction, from poltce espionage and sur- veillance. Mr. Casimir Perter, fn his tittie work on “|e8 Hoel de Uo-opfration,” published tn Pana In 1864, admits that much when he hints that the French workingmen have no auch fair chance as the English of obtaining the blessing of a competence by free industry, claiming at the same time that hie government must ameliorate the condi tions of French agriculture aod liberate in- daetry from all restrainta which plac position of inferiority. Based upon these adminsi: of Mr, Casimir Perier, the Ldinburg Quarteriy view for October, 1844, comes to the conclusion “af there are to be any pri there (in France) and any cinu! which other countries. detive z these many aod transactions, the store societies, ¢ m8 We. that tive spectadle artisans and laborers to m: affairs in their own way.” As thia has not as yet beeu done to any extent the founding of successful ©o-operaive societies was next to an impossibility. ‘The Association Alinentatre, or Rating House Asso- ciation, of Grenoble, which furnishes cheap meals to lis Members, ia the only one of apy consequence in France of witch any notice haw been had, and as 1% 18 merely an association to buy cheap food, cook eat it In cominon, it was aa yet bat litte impor- tauce for the great sulution of the problem to eevate their own advocating atl measures tton in Its most extended sense, pera ton hinaeat life as well as the winds of tue '@ Even Ki operative unions, tered he said, “in Russia; but the of the antry has entoreed the expediency of in- oaucin the compiete system, with all ita improve- It should be mentioned here that in Belgium co- operative societies found a better tleld and met with better suecess than in France, But there is one pe- culiarity in regard to the labor question in both these countries more devel than apywhere eise, the eroanromens of dwellings for laporers. The Cité ‘on, for instance, cost 700,000 francs and furnishes tations for 500 persens. and stock G pace eg formed to bulid houses for work people sell them at a moderate advance, with peyment by small weekly and monthly instaiments, are Dumerous, which companies are subsidized to the extent of about one-third of their capital out of the public treasury, Al this in Bogiaud is dono by Worklagmen tiemselves by means of self-help. IN THE UNITED STATES. If we look vuver ihe tieid in the United States, Where no obstacle or hindrance of any kind 1s placed in the way of the development of the co-operative system, 1 ls surprising to see it so little avalied of, and where by chance it is introduced it is so bun- gliugly done that it bears the seed of dissolution within it trom its very inception, Nowhere in the world has the principle of association been car- ried into alimost every branch of practical life as bere. Byery pubuc and bias enterprise, irom electing @ Senator or aa Alderman down to laying outa town road or building @ te foot cal vert over a creek, 1s sought to be m: d by a con- federated body of men; raiiroads, teiegranhs, steam- boats are projecte | and success{ully carried throuzh by companies, and even large commercial houses aid manufacturing establishments form corpora- tions, and thus increase and prosper, Why is it that the workinginen in this country ee so little by the lessons taught them in Europe? Why are they so slow to comprenead what power there is in association, in co-operation on a solind basis? Why do they not recognize as the working: men of Europe have done, at least in England and Germany, that through this system of association the laborer, however poor he be, may become his own employer and capitalist, earning pot only the wages of his trade, but partaking, in proportion to his share, of the profit» of the manufacture ¢ As an indieation of what might oe done in this direction let us take the financial condition of the savings banks. All the savings banks in this State, with hardiy an exception, are stock corporations, where the profits earned over and above the mterest paid to the depositors flow ito the pockets of the stockholders. These banks held of deposits in Feb- Tuary, 1867, in round numbers, $132,000,000 as de- posits, with an excess of about $10)000,000 belonging to the stockuolders, being the overplus of freed earned by tue money of the depositors. What is the natural province of a savings bank? It coliects, in the shape of deposits, for which it pays interest, the small earoings of petty traders and workingmen, which together make, a3 is scen apove, an immense amount of capital, and throws it in large volumes into channels of productive enterprise, for which it receives a higher interest than it pays itself. For this purpose and on a large scale the savings bank takes exactly the same place as the middie man ip commercial trausactions—as the huckster, for in- stance, between the farmer and the coasumer. The co-operative store societies in land strive to do away with the middleman, the huckster and retailer in the trade in necessaiies of le. The co-operative credit and labor associations in Germany try to get rid of the middlemen, the savings banks, and ve- come their own savings institutions, being the stock- ho-ders, depositors, and borrowers at the same time. It ts not too much too say that more than seventy- five percent of the money in the savings banks comes from our laboring population. The propor- tion to the whole amouni oa deposit in this State may be safely estimated at eigity millions, belong- ne to workiagmen and their families, aad if but half of that were invested in co-operative enter- prises the whole material aspect of the country would be changed for the better in a very short ime. The deposits in the savings banks of our own city foot up over eigity-six militon dollars. sixty of which undoabtediy come from workingmen. What iminense amount of good could be done with half of that mouey were it employed in co-operative asso- ciations, making the workingiian bis own capitalist, huis own savings bank, his owa emploret, own middleman between himself a3 a consuurer and the producing and trading world, and between himself as . producer aud the rest of the world ag consum- ers BE cera soy Mod ad pep one made on rare for ¢ purpose of introducing tie co-operative system. Of course, it ig not intended to inciude here the “Rappites” in Pennsylvania, the “Owenites” in Indiana, the Shaker communities in diferent parts in this and other States. Religious fi cism =pro- duced social incongruities, and though materialt; prospering, these secluded. settlements, with thet abnormal condition of society, stand only as tsolaved evideaces of man’s eccentricity. A much more do- termined and widespread attempt at introducing some sort of & co-o} ive a Was made avout 1848 or 1860 by a number of German societies, under the leadership of Wiliam Weltling. ‘I'he centra! or- ganization was In this , Where, as their organ, they published Die Repubiik der arbei‘er—The Re- ublic of the Workingmen+and were cal! to life ranch societies in every large in the couutry. They their society bakeries, society tailor shops, society blacksmith society and provision stores, and they hi ® farming settiement, the colony Communia, -in the State of lowa, some thirty-eight imiles west of Dubuque, Bnt they a!l uliimatcly failed, because the foundation on which they reared their structure was Specatielly wrong. It Was the principle of communism which underlay the whole, There was oo individual property, no interest of individual shareholders or pa clpanis, Each member joini disroved himself, so to say, of his individuality and became but a working tool for tae whoie of this orgaaized community without any {ndividaal interest im it tilmself. tis labor and its earnings belonged not to him, He could not count the ains of his industry nor the losses of iaziness. The jabor, the property, the Proat were owned andivid- edly by the “community” without any distinct indi- vidual shares or interest. This, of course, destroyed te havit of pradent self-reliance, the knowledge and feeling that one's happiness depends, in a great Measure, upoa one’s Own industry, economy and provideace. And very soon, after fou ing for a short time, the sev local organizations began to qoarrei, fell asunder and the end of the enterprise was at hand, aide ‘The next step attempted was that o! cegeniztog c0- bet building societies, Some at St, Louis, at Chicago and to other cities West and Bast thet. larly at Washington, in the District of Columpbtla, fourlsued for several years an’ provided many with ittie homes at easy terms of payment. But neither their nuraber nor the extent of their capital, formed of monthly contributions of the taerabers, was such as to merit any more than this snort reference, Co-operative stores have @iso been tried ia varions, Parts of the country, and, lamentable to say it, with very poor success, as likewise co-operative manutac- turing assoctations. The chief causes for their fail- ure were, first, anskilfal management, seconily, haste to start out ow le, and, thirdly, im- Proper use of the funds contributed. A& to the first cause mentioned it needs only a close study of the of these societies in Kng Jand and Germany to overcome it. To‘handle a new tool It is necessary to understand it. The “iochdale Pioneers” publish now an annual almanac, in which they give ti ‘uhlic from year to year the their own experience in managing thetr vaat co ration. La one of thei latest editions, under the tide fon" ” they modestly present their advice as joliows: 1. Procure the authority and protection of the law by enrol- eniiet iniesrit, tnteDigence and ablity be indiepeneable 5 E a 0 indtspensat choise of ofticers aad Ymanagers, and not S Le distinc. tion se regaras the amount of Wealth any member may coa- ote. 4. Let majorities rule tn all matters of ment. & Look welacer money matters ish frand, when é I odiate expalaion of the defrander. in the lowest markets; or it y * the a as nce oF your industry to well contrive If ned i io hae Po" Never depart from tne pelneiple of buying and selling for ready money. & re of long reckonings in societies’ accounts, Quar- teriy accounts are the best, and should be adopted when prac- obi. % For (he sake of security always have the accounted of the cet stock” at least one-fourth lees than tie OLAD'e value, |. Let members take eare that the accounts are ly audited by'men of tele owa choosing. sed 11. Let committess of management always brave the an- thority of merabers before taking any Important or expen- ive atep. vibe not court opposition or publicity nor fear it when it ora 13, Ghose th te leaders whom you can wnt en i en Pl aban 7" ome ‘These “Hinge? contala simple and plain rates, par tloalarly toe seventh never to sion the credit aya- tom. ‘Taking or giving credit has been the deati- biow to more tiga one society. Ia bogiand it has Veen generally found to work Hef, and societles which have succumbed or are kept in a languishing oundition attelbute the ease to the credit A general convention of German Riven enalene G to aband.n it, Stettin fn 1965, passed resolutions and advised afl who Naas With this is connected cl failure, as mentioned abo have boon originated In this 6 to commence Wishing to wait ull the furnish the required to less amou ready cash aud borrow the balance, either in money or goods, on time, Wherever this haa been fried It brow nt tonnes and disasters, if not entirorvin. The third cause—Improper use of the funds—is an incident to all naman enterprises now- adays, bul tt may be guarded against by following strictly the “Hints” of the Rochdale Pioneers given al it favoritiam be abetained from and men be chogen only on account of theit merits and ability, Tegardions of tie persoual distincien or wealth, tive Associa tons— with oo-opera- and tending to im- ‘and for- hysical elevation of the workingman, not only in fis city, but throughout the land; to render him in- dependent of the constant finciuations of what is called the ldbor market, independent of the mono- poly of capital—make him, in reality, what every man is in theory io a republic, his own boss, hisown master, SHIPWRECKS, The Collision in the Gulf of Smyrna—Loss of Over Two Hundred Lives. In the English papers of the 5th instant we find the following details of the reported collision In the Gulf of Smyrna, the announcement of which appear- ed in the HERALD of December 25:— Yesterday confirmatory intelligence was received in Liverpool of a terrible collision between two ‘Turk. ish vessels, and the loss of 220 lives, The news comes from Constantinople by way of Havre, and is dated from the latter port, December 31, The following are the main facts, so far as can at present be learned, of this catastrophe:—About midnight on the 1ith December, about forty-one miles from Smyrna, at a place called Carabournon, two steamers belone- ing to the Azizie Company, viz., the Galiioup and the Charkeich, came into colitston. The force of the contact was dreadful, and the Gallioup foundered almost immediately, only thirty passengers ont of 250 being saved. The Charkeich was so greatly dam- aged by the tolliston that she bad to be run ashore at Chesme, two miles from Smyrna, to prevent ner from sinking, The Gallioup had a verv valuable cargo and a large quantity of specie on board when she foundered. Loss of the Ship Southern Empire and All on Board. {From the London Daily News, Jan. 6.] Yesterday intelligence reached Liverpool of the foundering of the shiv Southern Empire, with every soul on . The Southern Empire, under com- mand of Captain J. Dunlop, left New Orleans for the Mersey on the 11th of November, with a very valua- ble cargo, among which were 3,699 bales of cotton, ‘The ship must have encountered very severe wea- ther, for on the 22d December, in latitude 44 north, longitude 25 west, she was sighted by the ship Aurora Australis in a crippled condition, and sink- ing fast. The weather was feartul at the time, the wind blowing very hard and the sea running high. The Aurora Australis lay to during the night, but at dayiight next Dees g nothing was to be seen of the Southern Empire, and it is believed that she found- ered in a norwester during the night, with all on board. The bark Miranda, which has just reached Liverpool, when in latitude 45 deg. north. longi- tude 22 deg. west, on the 25th of Decem- ber, passed several bales of cotton, evidently not ng in the water, and on the fol- lowing day the vessel also passed through a quantity of timber aud wreckage. The Southern Empire was @ comparatively new ship, having been built at uebec in 1863, for Messrs. D. Cannon & Sons, of ve! 1. | She was considered to be a very fine vessel, her tonnage 1,142, and she was classed Al at Lloyds. Nearly every ship which reaches the Mersey encountered fearful weather in the Atlantic. The Expounder, which has just arrived from New Orleans, left that port on the sth of De- cember, and from that date up to making the Mersey she encountered a succession of heavy gales. The Expounder was compelled to bring on the New Orleans pilot, as 1t was impossible to land him, the weather being so tempestuous, On the 3st Decem- ber, latitude 47 deg. north, longitude 18 deg. west, the wreck of a bark was passed; the decks were broken, the stern ont, only stumps of matn and imizzen masts standing. ‘The vessel had painted ports and the figurehead of a man with a crown on the top, She appeared to be a vessel of about 400 or 500 tons. The bark Kcho, Which has just arrived at Liverpool, from Cardenas on December 10, fell in with tho British brig Boca- bee disabled and the boats washed away. The crew entréated to be taken on board the Echo, but as the sea was. ran high 1t was impossible to launch the boats. The Echo lay to all night. On the 1ith the weather was still rough and stormy, with heavy squalls accompanied by hall and lightning. The boat was got over e side and after several attempts, the crew, ten in number, of the brig were it safely on board the Echo. The crew of the cabee were in a most exhausted condition when rescued. On the 12ty a tremendous sea led the Echo, disabling several of the crew, filling the cabin with water, shifting cargo, washing spars and tar- fue overboard, lifung hatches, breaking ring- its and winch from deck, stove in long boat, washed away the galley cooking uten- siis, harness cask with meat and three casks of water, There only then remained 160 gallons of water for nineteen men, and one quart tobe served out daily, Encountered heavy gales during the remainder of the voyage, but succeeded in catch- ing a cask of rain water, which, though brackish, was very acceptable, [A despatch by cable received here last night from London announces that the captain and crew of the ship Southern Empire had reached the land in safety.) UNITED STATES SUPREME COURT. Government Certificates of Indebtedness and Trensury Notes Exempt from State Tax~ ation—Decisions in the New York Bank Tax Cases. we WASHINGTON, Jan, 18, 1869, The People of the State of New York ex ret. The National Broadwah Bank vs, Donnelly et al. and three other casex,—These are appeals from judgments of the Court of Appeals of the State of New York. ‘The facts of the controversy are briefly as follows:— On the 30th of April, 1866, the Legislature of New York passed an act directing the Buard of Super- visors of the county of New York to refund to any bank such an amount of taxes paid in 1863 and 1864 as was imposed or levied in respect to any portion of capital stock invested in securities of the United States by law exempt from taxation, and for thi purpose to cause to be iasued county bonds for the amount of such claims, after they had been audited and allowed by the Board and approved by the Mayor and Corporation Counsel. The claims of such character were audited and allowed and approved, sa required; but subsequently the objection was raised that such portion of the capital stock of the banks taxed as was invested in certil- cates of indebtedness issued under the acts of March 1 and 19, 1862, or in Treasury notes of the govern- ment, were not exempt from State taxation, because such certificates of indebtedness and United States notes were not “securities of the United States.” This question was taken into the State courte and finally went to the Court of Appeals, where it was held that the certificates and notes in question were not exempt. From that decision appeal was taken to this court, Mr. Chief Justice Chaso now delivered the opinion of the court, reversing the judgment of the Court of Appeala, and holding itis clear that these notes and certificates are obligations of the United Saeed Lr] is no solid distinction between cer- ing money, are as the control and limitation the taxation as bonds or other tiona for loans of money. The principle of exemption ia that the States cannot control the national ment within the sphere of its con- stication power, for there it is supreme, not tax its obligations for payment of money jeod for purposes within that range of fach taxation witnit ‘he proveeuon ft tide pet oT ond ‘The public in of in history of the coun’ and ine hots of Co show that were inened to croditors for su) neces- sary to the rernen it in carrying on involved in the Ose of ane Bank of Nev ei omer say, they vind tne “aalonal faith, to'the holders ie Baruent my timate ine lode ail ‘national obugations, ‘whatever they thay assame, The conclusion ta that the notes are ¢ jem pt, and that in respect to both the woles and cortificaies J Judgment of the Court of Appeais must be re- erased. Decision in tho Girard Will Case. The Supreme Curt today «lao rendered a deri. sion in the case of W, A, Girard v8, the City of Philadelphia, This is the Dhiase Of the Girard - Ka Kluxes. 9 the Nashville Union (democratic), Jan. 15.) Senate y , bya vote of seventeen to four, passed on ite Teading the bill known as “The Ka Ktox bill,” which so amends the act of September 10, 1868, as to authorize the Governor to declare martial law in such counties and whenever he may chonge to do so. The bill now goes to the House, and there can scarcely be a doubt that it will be passed by that body. The recent distur. bances in several counties in Middle Tennessee are made the pretext ‘or the of this bill, It ts clearly the intention of ical leaders to have militia quartered uvon the citizens of several coun- we are to have enacted in this State the been transpiring in Arkansas. When the effort was made to incor- porate into the bill which: became a law on the 10th of September last, the features embraced in the bill passed by the Senate yesterlay it was seriously apprehended that the calling out of such a body of militia ander a declaratiqn of martial law in a number of counties would seriously impair tte credit of the State In New York, an when the par- ties there who were unholding that cretit pro- tested that if tre militia bill uien pending before the Legislature, the features of which were precisely the same as the bill passed by the Senate will make the act of Seotember 10, 1868, was passed and the miiitia cal'ed out, they could not sustain the credit of the State, we have reason to know that assnrances were given these New York capitalists that the militia would not be called ont, The authori'y to ti Governor to declare martial law was stricken ou of the bill, an1 in that shape it was passe, amply conferring upon the Governor the power he already possessed under the acis of February 1 and March 16. The New Yorkers were still afraid to trust Gov- ernor Brownlow with even this authority conferred upon him, an] it is scill fresh in the memory of the people of ‘Tennessee that the Governor had to Iseue a proclamation staring that the militia wontd not be called out, but urgjng the organization of companies and regiments and to hold themselves In readiness in the event they should be needed. It is well known that the Governor was forced into the issuing of this roclamation to satisfy the New York capitalists b> fore they would advance the money to pay the ans- pended July interest, then overdue severa! months. ‘The money was advanced and the interest paid early in October. The same narties only a few weeks ago advanced what was needed to cid the Comp- troller in paying the January interest, and the Comptroller had scarcely got home when tne State was startle! with reports of Ku Kinx outrages in various portions of Middle Tennessee. It is remark- able that these outrages have commenced just after the State has got over its January interest troubte, and {tis also remarkable that these outrages have not all been committed on “loyal citizens.’ No effort has been made by the civil authorities, so far as is known 69 the public, to arrest the parties who are committing these outrages, It 1s stroncly sus- pected that if these law breakers should be arrested Many of them would prove not to belong to the “disloyal classes,”” Remarkable Address from Ex-Governor Neill 8. Brown—He Protests Against Mob Vio- lence. ‘The Nashville Republican Banner of the 15th inst. publishes tne following remarkable letter from ex- Governor Neill S. Brown in regard to the Ku Klux troubles in Tennessee. It is addressed To ran Ku KLUX ORGANIZATION: — T have deemed it proper to appeal to you tn behalf ot the public peace and law and order. 1 have been sips led to do 80 because I was once Governor of he State, and because, when the final breach be- came manifest between the North and the South, I thought proper to take sides with the South—the land of my birth and which covered the ashes of my kindred. Iwas not in favor of that breach. My whole course in Mller for the twenty-five years preceding was against the policy of separation.” But ‘when events transpire’ which rendered disunion in- evitabie, as I thought, 1 was called upon to take sides, did so, in sadness and sorrow, but in good faith. Whether I acted wisely or other- wise, is not now a matter of any t ance to the public; and, at my time .of life, 18 not likely to be a matter of much tmyortance to myself. Certain I am that I have acted in rood faith, I know and was conscions at the time that T was making a sacrifice of any hopes I might have had as a poblic man; buat, under the circumstances, it was impossible fore me to turn my back upon a people among whom I was born and bred, and who ad hono me with their confidence merely because they were weak and I had disapproved of their course. Since the war ended I have been sincerely and earnestly anxious for the restoration of government, both State and national, and especially for the res- toration of real peace and harmony, To ths end I have endeavored to act with a'l the means in my power. Atalt events I have been paving athee the war the highest penaity that conid have been inflicted on me—the loss of my franchise—to say nothing about my right to hold office; and still, and in de- spite of that, I have been laboring from month to Month end from year to hod to bring abont a senti- ment of toleration, conciliation and harmony among our people. We must have peace and law an‘ ordr. Society would be a hell if every man were perm'tted to take the law Into his own hands. There would be no security for life, Mberty or property. 1 do not know the purposes of your organization, nor am I aware of your numbers. I never saw one of vour body to know him. | bave heard a thousand and one stories of your outrages, very many of which I believed to have been exaggerated. But whatever may have been your motives in the beeen, if you please, a — of Pegs tg fe and pi and a purpose to protec! , respectfully cutinte that the pertod tn which any such idea may have been cherished? has now ed away. Co rts have been establish d tn every conn- ty and are in full operation. If the law has not that full force which it had before the war it ts rapidly acquiring it, society is reraining its lost ground, and the whole machinety of government, s0 long als turbed, 1s regaining its wonted vigor and force. I beg. you to reflect that while I and thousands of otiers are struggling con- stantly to regain our lost privileges, we are thwarted at every step by continual reports of onti upon the law, attributed to your organization. No doubt many of these reports ‘are false or exaggerated; we cannot tell; but whether they are false or not no organization, by whatever name tt may be called, has a right to take the law into its own hands. To doso puts an end to all government and makes every nan the enemy of his neighbor, * If your views are political, let me say they are im- practicable and preposterous. No valuable success can be achieved in that way to yourseives or to your friends, And if, perchance, you bring to punish- ment some miscreant whom the law has spared you do it at the enormous cost of a large portion of ‘tie commanity, who are made to bear the responsibill- ty of your acts, and at the expense of law and order. in, you are interested in the panes of the State, that cannot be achieved while the rentt- ment 1s spread broadcast araung the other States that there is no security among us, Emigrants will not come here. Capital will not come here. Our landa, both itural and mineral, must vo unoc- ba until we can furmish assurance that will be protected. Every act of vio- lence attributed to you tells fearful force upon the of the State and the happi- ness of the re You may, for what | know, feei that wrong bas been done you, or to some of your aud that there is not inuch hope of political ress, Let me assure you that you . 528 2 32 ei 33 sae A i i iy 25 S55 i i E i 28 z z 2 H $ now upon tho Tull establiane iow upon the full esta aintenance of ii and = order, has been done imo: dur. troubles I forgive i and if t have inju cherish ed sept ate oF men Bar certainly ouvht by this tine to be Bul they are or not my duty is plam, f am - 4 e353 a This i may be distastefal to Be it #0. St kindly intended. Bat tho law most ‘ail ‘The venerable fatuers of many of you, who now sleep im their graves, would, if thoy Were here, ap- Word J have written, and you will, too, sooner oF lator, Yours, & NaSHVILLS, Jan), 198% XEULL Ss. BROWN. The Kentucky Demoerats Agninst the Ke KluxSage Advice from a Ka Kiex Jouronl. [From the Tonievijie Conrierctowrnot, Js 1 We joa with ir democratic aveny other. Ultimately reason and pose will settle the temper of atfa.re to a natu Violence never will. sad te NEW JERSEY. . . Siudson City. Taw Huvson Oounry ARTILLERY will partic to-day with the Fourth regiment New Jersey Be commanding, in 2 lone! Rozers Governor Xandolph at Trenton. T! wiil leave by special train. OER AND TEEMINER.—The spring term of Hudson county Court of Oyer and Terminer open to-day at ten o’clook, Judze Bedle: pi There are fifteon Piegncts awaiting trial. amo them Arniel the murder and Gustave Hansmann, charged wi of John Passelil at Hoboken, Taw Stapsine or Orricen K1ina.—tThe ti Paul Miller, who was charged with stabbing oMeg Kling, at Jersey City, 1ast November, catne off y day at the Court of Special Sessions, Tne prison watved a@ trial by jury, but applied, throu his counsel, for trial ‘before the ou of Quarter Sessions. Mr, J. Harvey Lyon: District Attorney, said that ths State wi ready to proceed with the trial, and accordingly prisoner was placed at the bar, The witnesses ff the prosecution were oMicers Kilng, MeCarne, Rel and Dr. Reeves. The prisoner was found guilty sentenced to.one year in the State Prison, announcement which surprised not only the sp tors, but the prisoner himself. considering the city of the act. OMicer Kine was so severely stablj in the abdomen that he remain. for two weeks precarions condition. The prisoner left the co apparently well satis‘led, Bound Brook. ACCIDENT ON THE CENTRAL RATLROAD.—The t which left New York at nine o'clock yesterday mq Ing on the Central Railroad ran off the Kk ab two mniles from Bound Brook, while rannmg at rate of twenty-five miles an hour, The engine three cars ran along fot som> distance, jumping the ties, and two of the cars were silghtly damag One of the passengers, named Caleb Johnson, a dent of Somerville, was thrown trom his seat sprained lis foot by failing between two seats, accident was caused by a misplaced switch. this accident occurred on an embankment the co quences would lave been frightful. Weehawken, Onase Arrer River Tirtves,—About tour o’¢ yesterday morning -the watchman at Kohler’a observed three men pulling towards the side of pier and he at once rafsed an alarm by whistlin shouting lustily. Qne of the men was in the climbing a pile to get on th dock, when he slip and fell into the boat, causing it to turn almost 0 and one of the two who remained im the boat. thrown into the water by the ud ness of the jerk. FRefore his compan could draw him oat the watchman fired a rev over the heads of the men, wherenpon one of uttered an oath, threatening to “do for him” sently, Aman named Edwarl Maden, who fas at night duty in the quarries had just eo he watchman’s assistance, and both arming selves with stones opened a volley unon th one of the stones striking the man who sat stern of the boat aad who cried ant, “On, Dag killed.” The boat was now pulled off about yards, when one of the crew fired a revolver but neither shot took eifect, By the tim affray had ended Frederick Krenss and Jat land were on the dock and the four men gavi ina boat, but the stranzera wore so far ane: they escaped, it 15 supposed, to the foot of Sixty street, New Yor Mr. Kohler states th: thieves from New York have freanentiv mad upon vessels lying aroun Gnttennere, It posed that they have partfea in collusion wil on the Jerseg shore, Aboat ten months ago Of these thieves were chased trom this dock of them was wounded by a pistol shot. Newark. AtrempTeD EScare OF PRISONERS.—A effort for freedom was mae yesterday by t oners awaiting trial in the prisoners’ room a tothe conrt. By cutting out the lock from thi work of the door they manasgol at outsid unluckity for them, the nstayles in atte perceived the latter portion of the manwu promptly secured the entire bateh. Tue “MEXxI00" Arrray.—Wiliam Kruz, th man barkeeper who stood charged with si one of the colored, men—a man named Brys the commencement of the Christmas eve ances in “Mexico.” was found guilty of ati assault, in the Court of Quarter Sessions, yest and let of with a (ne of thirty dollars and court. Hereafter, who will say tiat Jersey ju severe? ‘ SERIovs ACCIDENT TO A CARPRENTER.—Yes morning, about half-past seven o'clock, a cag residing tn State street named John Hamitl fe the roof of a new house being completed Charlies Young, on South Broad street, ne street, and sustained injuries equally serio shocking. In hia descent he first strnek ascad nd smashed his right knoe pan and broke hh Striking the ground, his face and head were ft cut and braised, One of the jaws were brot seems he had awept of the snow from the the French roof, atd had jnsi made the ctreull house when he slipped ant toppled overs fortunate man was first removed to the ad residence of Mr. Thos. B. Kinney, whea Dra.) and Young attended him, and then taken ho hope Is entertained of He ki aad two children, Paterson. Wrestiina Mator.—An exciting wrestling camo off at the Paterson Ri ourse yestes ternoon between Joe Tinker and Jack Turn sporting Englishmen residing in Paterso match was for fifty dollars a aule and condaq cording to the “Lancaster styic," best tn thr falls, avd was won by Joe Tinker, who ti opponent the first two roands successively. rt bets were even, but after the first round one on Joe. she whole affir lasted onl, twenty minutes, Passate County Covers.—The case of Of alleged receiver of stolon silk. was conch terday, and the accused was acquitted. Judd yesterday afternoon pronounce! the follow tences:—Francis Faure and Claude Tholomet six months each m the State Mrison fo from the Greppo Mill the aiik which 0 charged with receiving; Jobu Firth, for lar days in county jail; James Black, nine in State Prison for assaniting an of@ one day in county joi for larceny; Laroe, for larceny, ten days in cow James Smeliie fined seventy-five dollars and grand Jarcen, ges. was laloney was reconsidered! and susvended present, The sentences of Mary Donnell, fo and Eugene B same offence. were ref the Court of Sessions, ‘The sentences Doug huey, John Post, James Thoms and Odell, atl convicted of petit larceny, were ay for the present. Yesterday lod Jude term in Paterson. He presides at the Hudsd courts to-day. Trenton, THs CovRts.—The regular terms of t States District and Mercer county courts this morning at ten o'clock. y Proxrockrrs ON THe RAwrAgE.—Lasi Mayor Napton received a teiegram from berry street police station, New York, that thieves Would invade Trenton last nich! morning to ply their vocation among the ¢ are expec! to be present at tho ina to-day. Inavavration oF GovenNor RAaNpoLr sive arrangements have been effected for. ing and orderly display at the tnauguratio Yesterday afternoon the Veteran Zouaves beth, numbering about fity men, under sand of Captain Drake, arrived nore an ceived by the American Hose Company, they paraded through the city, after W entertained by Chief Engineer, Jona ton, In the evening the Veterans of the Arperioat jose Company, wW ball in. Bethel ie if ttt ‘escort will arrive this morning, vy haa been temporarily erected fi Pedal RD espe fers ant revie have Teo completed, THE PRIZE RING, A Sharp Prize Fight in Phite rize feht occurred about a Ft a rows! ween nd lasted throngh forty-o ocedpying an honrend fifty minutes, and won the ‘znt by a foal, Both men were tp. I y i badly cut and ‘comp y Was wevare| nd fwil bot