ELECTRIC POWER FOR COUNTRY DISTRICTS 



Since the date of the above return, the number ot electric under- 

 takings of co-operative character has increased considerably; and there has 

 especially been a large increase among the societies for the local distrib- 

 ution of electric power. In fact, in recent years, there have been founded 

 700 new co-operative electric societies, principally for distribution : very 

 many have been founded for this latter object, above all in the Provinces 

 of Pomerania, Silesia and Brandenburg. So also there nave been started 

 in recent years, under the legal form of co-operative societies, various 

 imdertakings for small local districts, producing electric power directly 

 for their own account. 



It would, therefore, appear that the foimdation of large central so- 

 cieties of co-operative form has now come to a stop. Certainly, agricultural 

 circles are disposed to choose the popular legal form of co-operative 

 societies, for the organization of these central societies, but it cannot be 

 overlooked that the idea meets with difficulties of various kinds in its 

 application. The expense of inst allation for the large electric work-shops 

 for the central societies is very high : these undertakings usually require 

 millions. The co-operative societ3^ which is a community of individuals, 

 is Httle suited for enterprises requiring immense amounts of capital. The 

 legal equahty of the votes of aU members, independently of the degree 

 to which they have contributed to the formation of the capital, leads to 

 the result that even those members, who might on their own account 

 provide large funds, are not to be induced to contribute largely to the 

 constitution of the capital. These shareholders would wish to have 

 more considerable rights, in proportion to their larger contributions and 

 the greater risks they run; but the society may not grant them such rights. 

 Thus, those who are most concerned, if they are v/ealthy, for example, 

 large manufacturers, communes and districts, for the above reasons, 

 usually abstain from participation in central societies to be founded un- 

 der the legal from of co-operative societies. 



There is a further disadvantage in the ease with which members 

 may leave a co-operative society and, even if it be objected that for prac- 

 tical reasons a member will never leave an electric power society, the 

 mere possibiht}'' of withdrawal is a disturbing element, while in reahty 

 differences of a personal character or in relation to matters of fact, or the 

 appearance of rival undertakings may always lead to resignations of the 

 members en masse. 



Owing to these considerations, the idea ma^^ be shov.-n to be prevalent 

 in rural co-operative circles that the legal form of the co-operative society 

 is not to be recommended for large central electric power societies. In 

 view of the capitalistic character of such undertakings the form of Hniited 

 liability societies or societies limited by shares is, in general, rather to 

 be advised, and, in connection with these, the communal organizations 

 and the consumers of electric power should form co-operative societies 

 for the distribution of power. In accordance with the above observations, 

 the legal form of the co-operative society has only been adopted in a few 

 isolated instances for the foundation of central electric societies, above 



