VAEIOUS CO-OPEBATIVE UNDEETAKINGS 153 



which was formed in Copenhagen in 1912 for the purpose of 

 applying co-operative principles to the production and utilisa- 

 tion of dwellings. The co-operators become part-owners of 

 the dwellings, which, according to the prevailing custom, are 

 tenement houses with many small flats. Membership is open 

 to individual persons, institutions and societies. Each member 

 pays two guineas to the administration and reserve fund, and, 

 if the member takes a flat, he pays a further contribution of 

 £14 to £25 according to the size and amenities of the flat. On 

 these contributions the society pays interest at 4 per cent, per 

 annum. Each building unit -or tenement house forms an in- 

 dependent branch of the society, and is managed independently. 

 The rent is fixed so as to cover rates and taxes, repairs, and 

 interest on loan, with a moderate addition to meet extra 

 expenses. As the loan, which is generally raised through a 

 credit association, is gradually repaid, and the annual expendi- 

 ture of the branch thereby reduced, the rent paid by the 

 members is gradually reduced. In former co-operative 

 building societies a different system was followed, viz. to let 

 the tenants gradually acquire the freehold of their houses 

 (or jointly that of a tenement house) by paying full rent until 

 the purchase sum had been paid. This had the undesirable 

 result that members, who had become owners, in many cases 

 succumbed to the temptation of selling to speculators, who 

 then raised the rent, drove out the artisan families, and re- 

 introduced all the evils which it was the object of the society 

 to do away with. Therefore the Workmen's Co-operative 

 Building Society does not let the property pass to members ; 

 these get their benefit in the shape of reduced rent, and only 

 as long as they remain members of the society. If a member 

 moves away from the society's building or withdraws from the 

 society, the society refunds him his share in the property, but 

 he cannot sublet his flat to a third party. The society disposes 

 of the flat, which is let to a new member, who pays to the 

 society a sum equal to that which the society has had to pay 

 to the withdrawing member. In this way all chance of 

 speculation in the flats is removed. The model dwelling-houses 

 are very good and convenient, and the rent is considerably 

 cheaper than that of equally good flats in other similar buildings. 



