CO-OPERATION - VOLUME VIII - JANUARY - DECEMBER 1922
CO-OPERATION - VOLUME VIII - JANUARY - DECEMBER 1922
CO-OPERATION - VOLUME VIII - JANUARY - DECEMBER 1922
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i <strong>CO</strong>-<strong>OPERATION</strong><br />
Formerly "XKe Co-operative Consumer<br />
PUBLISHED MONTHLY<br />
BY<br />
Tne Co-operative League or U. S. A.<br />
<strong>VOLUME</strong> <strong>VIII</strong><br />
January—December<br />
<strong>1922</strong><br />
<strong>CO</strong>-OPERATIVE LEAGUE OF U. S. A.<br />
167 West 12tK Street, New York City<br />
<strong>1922</strong>
INDEX<br />
A PAGE<br />
Accessory Co-operation ...................................-...-•••••••••••••• 40<br />
Adviser for Groton, N. Y., An................................................ 213<br />
Alanne, S. ...........--•••••••-•••••••••••••-•••••••••••••••••••••••••••••• 8 5<br />
American Labor Party's Endorsement........................................ 173<br />
Arnold, Mary £......................-••••••••••••••••••••••••••••••••••••• 97<br />
Artists' Co-operative, An. ................................................... 14<br />
Ashland Society, The........................................................ 212<br />
Associated Grange Warehouse, Seattle, Wash.. ................................ 168<br />
Australian Co-operation.................................................. 142, 188<br />
Austria, The Co-operative Movement in................................... 142, 169<br />
B<br />
Babson's Advice to Throttle Co-operation ..................................... 13<br />
Backward British Step...................................................... 176<br />
Bakeries, Conference of Massachusetts........................................ 107<br />
Bakeries, Observations of Co-operative........................................ 209<br />
Bakery at Paterson, N. J..................................................... 80<br />
Baltimore Co-operative Society Helps Miners.................................. 105<br />
Bank of Philadelphia, Labor. ................................................ 52<br />
Banking .....................................................56, 92, 130, 159, 167<br />
Basel, Switzerland ......................................................... 23<br />
Be a Corporation ........................................................... 182<br />
Beauty, The Need of......................................................... 147<br />
Belgian Congress ........................................................... 179<br />
Belgian Co-operators and War Invaders...................................... 77<br />
Belgian Co-operators Purchase Fishing Boats. ................................ 16<br />
Berlin Co-operative Theatre................................................. 176<br />
Blazowska, Margaret ....................................................... 8<br />
Bloomington, Illinois ....................................................... 87<br />
Bolton, England ............................................................ 149<br />
Book Review, Co-operative Anthology—Totomiantz............................. 18<br />
Book Review, Consumers' Co-operative Movement—Webb. ...................... 36<br />
Boston Co-operative Bank ................................................... 72<br />
Boycott Co-operatives ....................................................... 16<br />
British Co-operation in 1921.................................................. 160<br />
British Co-operative Congress at Brighton..................................... 140<br />
British Co-operative Societies ................................................ 113<br />
British Co-operative Union. .................................................. 141<br />
. British Honors to Co-operators............................................... 147<br />
Brooton, Minnesota ........................................................ 175<br />
Building Guild, The Fate of a. ............................................... 77<br />
Buying Club for "Middle Class" Co-operators.................................. 25<br />
Buyers' Strike, A........................................................... 20<br />
C<br />
Call to Co-operative Congress, Chicago, Illinois................................. 112<br />
Canada, Encouragement From .............................................. 216<br />
Canadian Co-operative Congress.............................................. 178<br />
Canadian Co-operative Progress.............................................. 125<br />
Can Co-operation Defeat Monopolies?......................................... 182<br />
Carlsbad Congress .......................................................... 77<br />
Catholics and the Co-operative Movement..................................... 44
Census Returns on Co-operation.............................................. 15<br />
Central States Co-operative Society Feeds Miners............................ 1, 12<br />
Cheapness Not the Aim..................................................... 93<br />
Chicago Congress, The ...................................................... 199<br />
China, Co-operation in....................................................... 105<br />
Clarinda, Iowa............................................................. 174<br />
Cleveland Co-operative Dairy ............................12, 30, 126, 138, 174, 194<br />
Cleveland District League.................................................71, 139<br />
Cleveland, Workingmen's Co-operative of...................................... 51<br />
Closser, W. H. ............................................................. 7<br />
Coal, A Story in ............................................................ 78<br />
Coal, Cheap ................................................................ 161<br />
Coal, How to Run........................................................... 145<br />
Coal, Plan for.............................................................. 189<br />
Coal Strike, The............................................................ 73<br />
Coeur D'Alene, Idaho ....................................................... 175<br />
Colleges Teach Co-operation ................................................. 15<br />
Committees and Program for Third Co-operative Congress..................... 153<br />
Conference of Co-operative Managers in Minnesota............................. 103<br />
Congresses..........................77, 112, 140, 153, 178, 179, 199, 202, 205, 213<br />
Convention of Northern States............................................52, 214<br />
Convention of Ohio District League........................................... 157<br />
Co-operation Dawns Again in Ireland......................................... S2<br />
Co-operation's Duty to Trade Unionists....................................... 40<br />
Co-operation in England and Wales........................................... 41<br />
Co-operation, the One Hope in Europe......................................... 108<br />
Co-operation Saves Strikes .................................................. 195<br />
Co-operative Bakeries, Observations of........................................ 209<br />
Co-operative Bakeries Feed Strikers.......................................... 85<br />
Co-operative Coal Mine in England........................................... 148<br />
Co-operative Congress, Program and Committees............................... 153<br />
Co-operative League House Warming......................................... 100<br />
"Co-operative" League of Pennsylvania (Non-Co-operative) ..................... 69<br />
Co-operative Society of America.............................................. 69<br />
Co-operatives and the Business Depression.................................... 86<br />
Co-operatives and Russian Relief............................................. 88<br />
Co-operatives Cut the Price of Bread.......................................... 16<br />
Co-operatives Launch Fishing Flotilla......................................... 16<br />
Co-operators Do Not Make Sales............................................. 191<br />
Co-operators Elected to U. S. Senate.......................................... 215<br />
Co-operators to Rehabilitate France ................................ .......... 215<br />
^Correspondence. .......................17, 35, 54, 72, 90, 107, 126, 143, 162, 180, 196<br />
Course on Co-operation...................................................... 121<br />
Course on Co-operation in French College ..................................... 84<br />
Credit Union Bank in Boston................................................. 15<br />
Credit Unions. ...........................................................82, 89<br />
Crestline, Ohio ............................................................. 35<br />
Cutting Expenses .......................................................... 15<br />
Czecho-Slovakia ........................................................123, 191<br />
D<br />
Dangers of the Big Society................................................... 131<br />
Davies, M. L.—Inaugural Address............................................ 144<br />
Dedication of The League House............................................. 100<br />
Democratic Control and Strikes.............................................. 124<br />
Denmark ..............................................................106, 124<br />
INDEX<br />
PAGE<br />
Desbofough, E"ng., Shoe Factory.....................,.-...-.,.,,..,,.,,........ 94<br />
Despite Mistakes. ............................................................ Ill<br />
Difference Between Co-operation and "Business"............................... 109<br />
Dillonvale, Ohio ....................-•.-•...'..••-••......-.............•.... 194<br />
Donnelly, Thos. J., Pres. Ohio District League, Address of...................... 158<br />
Dcn't Ask Too Much of the Store............................................. 3<br />
Dunleavy, F. J. . ............. ^. ••••• ^-•••-••.••.-.... ^-...^................ 188<br />
Duties of Co-operators............................ ^... ^...... f............ f.. 3<br />
E<br />
Economics of the "Manage X"............ ...................................... 15t<br />
Education at Scranton, Pa................................................... 107<br />
Education of British Co-operative Union...................................... 14l<br />
Educational Work.................................................63, 65, 76, 99<br />
Efficiency, Not Class........................................................ 128<br />
Electricity in Switzerland and Russia, Co-operative............................ 53<br />
Elimination of Waste in the Restaurant...................................... 97<br />
Encouragement From Canada .............................................. 216<br />
Engineers' Bank Pays Savings Returns....................................... 159<br />
England and Wales, Co-operation in.......................................... 41<br />
English Survey, An......................................................... 178<br />
Erwin, Tenn. ............................................................... 194<br />
European Impressions ..............................................5, 23, 41, 58<br />
F<br />
Fairhope, Ala. ............................................................. 126<br />
Fake Co-operation .......................................................... 56<br />
Fake Co-operatives in Los Angeles .......................................... 160<br />
Farmers Buy Together ..................................................... 160<br />
Farmers, The .............................................................. 21<br />
Farmers, The Plight of the .................................................. 164<br />
Farmers' Union Co-operative Insurance ...................................... 30<br />
Farmers' Union Stores in Nebraska .......................................... 35<br />
Farmers' Union Teaches Labor .............................................. 92<br />
Farmers' Union, The ....................................................... 175<br />
Farmington, Illinois, Store Thrives........................................... 31<br />
Fascist! Destroy Co-operatives ............................................... 191<br />
Federal Reserve Bank ...................................................92, 130<br />
Finland Keeps on the Move ................................................. 53<br />
Fire Insurance at Wocdridge, N. Y. .......................................... 71<br />
Fishing Flotilla Launched................................................... 16<br />
Fogelson, B. ............................................................... 118<br />
Food For Thought and Use ................................................. 75<br />
France, Co-operators to Rehabilitate.......................................... 215<br />
Franklin Co-operative Creamery, Minneapolis ........................... 14, 88, 173<br />
French Co-operative Bank .................................................. 177<br />
French "Co-operative Day", A ............................................... 34<br />
French Distrust Government ................................................ 176<br />
French Miners' Plan for Coal ............................................... 189<br />
French Wedding Gift ...................................................... 161<br />
Freundlich, Emmy ......................................................... 169<br />
Fun in the Co-operative Movement ........................................... 183<br />
G<br />
Gabardo, G., "A True Story of French Life" .................................. 151<br />
Genoa, Straight From ...................................................... 129
INDEX<br />
PAGE<br />
German Consumers Take Over Government Works ............................. 175<br />
German Co-operative Congress .............................................. 178<br />
German Pish Industry ........................••••••••••........••••..-•••• 193<br />
German Share Capital ...................................................... 191<br />
Germany, Co-operation in ................................................... 5<br />
Get-Together Club Lectures ................................................. 87<br />
Gide, Chas., "Consumers' Co-operative Societies" ............................. 178<br />
Glasgow, Scotland .......................................................... 58<br />
Glasgow Co-operative Bakers Reduce Bread ................................... 16<br />
Goedhart, G. J. D. C., Letter from ............................................ 198<br />
Government Loans to Co-operatives ......................................... 37<br />
Groton, N. Y., An Adviser for ............................................... 213<br />
H<br />
Hamburg Co-operative Union School for State Officials ......................... 4<br />
Health Protection in Madrid ................................................ 161<br />
Henryetta, Oklahoma, Co-operative Society ................................... 18<br />
Hoan, Daniel W., Mayor of Milwaukee ........................................ 114<br />
Honors Thrust Upon Us .................•••••••••••••••••••••••••••••••••••• 147<br />
Hospital, Co-operative, in Hungary .......................................... 34<br />
Hospitals in Spain ......................................................... 161<br />
Housing in Europe ......................................................... 29<br />
Housing in Milwaukee ...................................................... 116<br />
Housing Policy in Russia ................................................... 16<br />
How Co-operation Can Win ................................................. 55<br />
How to Know the Wild Co-ops ............................................... 2<br />
Hucknall, England, Interests the Children ..................................... 72<br />
Hungarian Doctors Co-operate ............................................... 33<br />
I<br />
Incorporate, Co-operative Societies Should .................................... 93<br />
Incorporation of The Co-operative League .................................... 62<br />
Insurance, Co-operative, in New York......................................... 118<br />
Insurance in Great Britain .................................................. 89<br />
Insurance, Life ............................................................ 200<br />
Insurance of Farmers' Union ............................................... 30<br />
Intercollegiate Co-operative Society .......................................... 60<br />
International Alliance Central Committee .................................... 105<br />
International Co-operative Alliance Report on Russia .......................... 125<br />
International Co-operative Summer School .................................... 124<br />
International Congress, The Next ........................................... 213<br />
Ireland, Co-operation in .................................................... 32<br />
Ireland, The Future of ...................................................... 89<br />
Italian Co-operatives ....................................................... 54<br />
Italian Government Aids Co-operation ....................................... 33<br />
It Pays to Stick ............................................................ 26<br />
J<br />
Japan, Co-operative Movement in ............................................ 190<br />
Jewish Societies Affiliate with League ........................................ 137<br />
Jewish Societies, Conference of .............................................. 64<br />
Job Cursed the Day He Was Born ........................................... 166<br />
K<br />
Kalamazoo, Michigan, Progressing ........................................... 126<br />
Kansas Strikers Fed by C. S. C. S. .......................................... 12<br />
INDEX<br />
PAGE<br />
Kaufmaun, Heinrich ................ ....................................... 142<br />
Keen, George, Letter from ........... ....................................... 196<br />
King, Dr. Wm. and the "Co-operator"- -Book Review .......................... 144<br />
Kittering, England .................. .....................................77, 94<br />
Labor Council of Nashville, Tennessee, Endorses League ........................ 172<br />
Labor Federations Endorse Co-operation ..................................... 102<br />
Labor Leader Visits Italian Co-operatives ..................................... 54<br />
Laundry at Little Rock a Success ............................................. 17<br />
Laundry, The Co-operative, of Lynn .......................................... 134<br />
Laundry, The Greenwich Village............................................. 104<br />
Law, Model ................................................................ 29<br />
League Helps Co-operative Cigar-makers ..................................... 195<br />
League House, The ........................................................ 62<br />
League Needs for <strong>1922</strong> ...................................................... 10<br />
Lehighton, Pennsylvania, Co-operative Association............................. 78<br />
Let's Work Together ........................................................ 207<br />
Lewiston Association Doubles Business ....................................... 139<br />
Life Insurance Saves Life ................................................... 200<br />
Light Ahead .............................................................. 201<br />
Llano Colony, The ................................................. 128, 132, 196<br />
Loans to Co-operatives ...................................................... 37<br />
Locked Out Rush Run Miners Send Money .................................... 215<br />
London Co-operatives ....................................................... 41<br />
Long, Cedric ....................................................25, 78, 150, 209<br />
M<br />
McGowan, R. A. ........................................................... 44<br />
Maintenance of Way Brotherhood .......................................... 84, 105<br />
Making the Pictures ........................................................ 76<br />
Manager, The Honest ....................................................... Ill<br />
Marquette University Chapter, I. C. S. ...................................... 60<br />
Maynard, A Town in New England .......................................... 133<br />
Medical Co-operation ..................................................... 34, 161<br />
Milk and Health, Co-operative ............................................... 122<br />
Milk Distribution ....................................................... 160, 194<br />
Milk Strikers Organize a Co-operative Creamery ............................... 12<br />
Milwaukee, The Co-operative Movement in .................................... 114<br />
Minneapolis Labor Studies Co-operation ..................................... 14<br />
Mistakes of Corona, L. I. ................................................... 121<br />
Model Co-operative Law ..................................................29, 100<br />
Model Educational Letter ...............................................'....' 65<br />
Monopolies, Can Co-operation Defeat ........................................ 182<br />
Mount Olive Co-operative Society ..........................................86, 160<br />
Moving Picture Theatre, Co-operative ...................................... .' 30<br />
N<br />
Nash, Marion L. ............................. 99<br />
National Co-operative Association .......................................... 68<br />
Nebraska Co-operative Stores ............................. ... "' 35<br />
Nebraska, Farmers' Union of ..........'.'.'.'.'.'.'.'.'.".'.""""""""""""" 50<br />
Nebraska, Report from ........................ 1.."".'.'.".'.".".".". ^ " ^ "'"' 205<br />
Nebraska Survey .................. . .......................<br />
News and Comment ...............'.'.'.'.'.'.'.'.'.'.".".".'.'.".'12,' 30,' 49,'66,' 85,' 157,' 171, 194
INDEX<br />
FAGU<br />
New Year Greetings ... .,..-,..• * .
INDEX<br />
PAGE<br />
Theatre Collapses, A ....................................................... 39<br />
Theatre, Co-operative Moving Picture ................................. ...... 30<br />
Theatre, Berlin Co-operative ................................................. 176<br />
Third Co-operative Congress, Chicago ........................... 109, 136, 171, 202<br />
Thompson, Dorothy ........................................................ 108<br />
Three Reasons ............................................................. 14?.<br />
Throttling Co-operation .................................................... 13<br />
Totomiantz, Prof. V., "Co-operative Anthology" .............................. 18<br />
Trade Unionists, Co-operation's Duty to .................................... 40<br />
Tade Unions Burn Money .................................................. 128<br />
Training for the Service of the Workers ...................................... 1<br />
Transactions of the Third Co-operative Congress ............................. 205<br />
Trust Busting .............................................................. 181<br />
Tucumcari, New Mexico, Society............................................. 77<br />
U<br />
Ukrainian Co-operation ................................................... 8, 142<br />
Unemployed, The ........................................................... 135<br />
United Brotherhood of Maintenance of Way Employees......................84, 105<br />
U. S. Senate, Oo-operators Elected to ........................................ 215<br />
Utica, N. Y. Co-operative Society ......................................... 17, 85<br />
V<br />
Vacations for Co-operators ................................................. 117<br />
Vatican, At the ............................................................ 53<br />
Villa Grove, A 50 Per Cent. Co-operative Town ............................... 13<br />
Vital Issues .............................1, 19, 37, 55, 73, 91, 109, 127, 145, 163, 181<br />
W<br />
Wages Before Dividends ................................................... 199<br />
Warbasse, J. P. ................. 1, 5, 19, 23, 37, 41, 55, 58, 73, 77, 91, 109, 113, 127,<br />
145, 163. 182, 184, 199, 211<br />
Warning Concerning the Co-operative League of America, of Pennsylvania (Non-<br />
Co-operative) .......................................................... 69<br />
Warning from Missouri .................................................... 31<br />
Waukegan, Illinois Opens New Dairy ..................................... 86, 160<br />
We Are Onto Genoa ........................................................ 74<br />
Webb, S. and B., "Consumers' Co-operative Movement" ........................ 36<br />
What We Owe the Poor ..................................................... 130<br />
When Will the Revolution Come? ............................................ 91<br />
Wilbrandt, Prof. Robert "Konsum-Genossenschaften" .......................... 144<br />
Wisdom from Germany .................................................... 33<br />
Womens' Guild ............................................................ 29<br />
Woodcock, Leslie E. ......................................................... 207<br />
Woolwich, England, Co-operative Society...................................26, 41<br />
Word and Symbol Contest .................:............................. .11, 205<br />
- Workers Need Training .................................................... 166<br />
Workers, Training for the Service of the ..................................... 1<br />
Workers Unite at Their Peril ............................................... 146<br />
Y<br />
Yardley, Washington, Co-operative Store...................................... 35<br />
Y. W. C. A. Co-operative Store in Cleveland ................................. 31
A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in vol<br />
untary organization, produce and distribute for their own use the things they need<br />
Published monthly by the Co-operative League of America, 2 West 13th Street, New York<br />
City. J. P. .Warbasse, Editor. Price, $1.00 a year. Entered as second class matter, December<br />
19, 1917, at the Post office at New York, N. Y., under the Act of March 3, 1879.<br />
Vol. <strong>VIII</strong>, No. 1 <strong>JANUARY</strong>, <strong>1922</strong> 10 Cents<br />
TRAINING FOR THE SERVICE<br />
OF THE WORKERS<br />
VITAL ISSUES<br />
The news comes that the Central<br />
States Co-operative Society has sent<br />
a train of ten carloads of food to<br />
the striking miners in Kansas—<br />
$64,000 worth of food—and that<br />
altogether this makes $200,000<br />
worth of food that it has sent to<br />
them—forty carloads in all. Let us<br />
look into this business a little. Some<br />
body must be doing this. It is the<br />
sort of thing that does not do itself<br />
—this business that is done by the<br />
workers for the workers.<br />
There are people who say that all<br />
that is needed is for the workers to<br />
capture the government, take over<br />
the industries, and then tell the su<br />
perintendent of what was formerly<br />
a capitalistic wholesale grocery con<br />
cern to send food to the striking<br />
miners. It sounds easy. It is the<br />
soap-box method. But history shows<br />
that people who have got their<br />
training by administering business<br />
for the profit-making interests do<br />
not readily change their psychol<br />
ogy. The Russian Soviet Republic<br />
tried the political revolutionary<br />
method, and executives of capital<br />
istic training sabotaged the workers<br />
all along the line. The workers<br />
who study history are learning that<br />
the best people to direct and or<br />
ganize industry in the interest of<br />
the workers are people who are<br />
trained and experienced in doing<br />
just that thing. And the Co-opera<br />
tive Consumers' Movement is the<br />
only organization of the workers<br />
that is steadily growing and success<br />
fully producing and distributing for<br />
use, and that is training people from<br />
the ranks of labor to serve the<br />
workers in administering industries.<br />
Aside from the men who had the<br />
imagination and vision to conceive<br />
of it, somebody had to do it. Who<br />
directed this job for the, Kansas<br />
miners? Who got the food togeth<br />
er, saw that it was put on the right<br />
cars and saw that the cars went to<br />
the right place, to feed the families<br />
of the miners? Not the superintend<br />
ent of a capitalistic grocery concern.<br />
I would not like to trust him with<br />
the job. He and his concern might<br />
do it, but they would have to have<br />
their rakeoff; and their heart is not<br />
in the undertaking. But the work<br />
ers in the United States are raising<br />
up men and giving them the train<br />
ing to do this sort of thing. The<br />
man who did this job is Bob<br />
McKechan, manager of the Central<br />
States Co-operative Wholesale of<br />
East St. Louis, 111. Others of the<br />
staff Ofiythat organization contrib<br />
uted their services; they also are<br />
working men trained to serve the
<strong>CO</strong>-<strong>OPERATION</strong><br />
workers. How did McKechan learn<br />
how to do this sort of thing; it is<br />
in the realm of big business? When<br />
he was a coal miner he joined the<br />
Gillespie Co-operative Society; then<br />
he became manager of its little<br />
store; and then he became manager<br />
of the Central States Co-operative<br />
Wholesale. He began at the bot<br />
tom, and as he got experience he<br />
moved on up. That is the kind of<br />
training that fits a man to adminis<br />
ter industries for the people. He<br />
is a friend of the workers; he<br />
knows the workers; and he has<br />
practical training in administering<br />
industry for them.<br />
These miners of Kansas, unfor<br />
tunately, are not organized as con<br />
sumers. They had to turn to the<br />
nearest group that was. The Cen<br />
tral States Wholesale performed all<br />
of the service free of charge and<br />
sold goods to them at cost. They<br />
gave them the advantage of saving<br />
both the wholesalers' and retailers'<br />
profits, and the advantage of get<br />
ting pure food, and not having any<br />
thing put over on them. And they<br />
got the food they needed. This<br />
sort of schooling, that McKechan<br />
and his associates are getting, will<br />
some day put the workers in con<br />
trol of the situation. Thousands<br />
and thousands of workers through<br />
out the world are now getting this<br />
training in the Co-operative Move<br />
ment. The method is slow and<br />
arduous. It cannot be gotten out<br />
of books or lectures. It requires<br />
pains, and work and patience. But<br />
there is no other way. And with<br />
out it victory at the polls or revolu<br />
tion will fail. Victory without the<br />
people behind it—people who can<br />
control industries, who know how<br />
to run industries—will cost more<br />
than it is worth. The captured in<br />
dustries cannot be held unless they<br />
can deliver the goods to the people.<br />
And if the people are sufficiently<br />
trained to run their industries they<br />
will find that they have captured<br />
them without a victory at the polls<br />
and without revolution.<br />
HOW TO KNOW THE WILD<br />
<strong>CO</strong>-OPS<br />
There is a little book called<br />
"How to Know the Wild Flowers."<br />
It tells their names and peculiari<br />
ties. Among other things it tells<br />
how to distinguish mushrooms from<br />
toadstools. It gives much useful in<br />
formation. The people of the Unit<br />
ed States need such a book to guide<br />
them in the fields of Co-operation.<br />
"How to Know the Wild Co-ops"<br />
would be a good name for it. Every<br />
trade union should have several<br />
copies, and for initiation each mem<br />
ber might learn it by heart.<br />
There are simple tests which may<br />
be applied to things that claim to be<br />
co-operative that will determine<br />
whether they are really flowers or<br />
weeds; whether they are safe or<br />
poisonous.<br />
A smart fellow, called an "organ<br />
izer," comes to town and talks about<br />
his old college chums, the Rochdale<br />
pioneers. He tells the working peo<br />
ple that the workers are just as<br />
smart today as those old fellows in<br />
Rochdale were, and closes by ex<br />
claiming: "Let us have a society<br />
right here and now." He then pro<br />
ceeds to tell how easy it is, and that<br />
all the people need to do is to buy<br />
a share in the great society that he<br />
represents, and a store will be<br />
opened for them the first of next<br />
week that will put the private mer<br />
chants out of business and return<br />
dividends that will cut the high cost<br />
of living all to pieces. He tells of<br />
the wonders of the "Corobberating<br />
Society of America," or the great<br />
"National Solesale," or the "Spe<br />
cific Leak," or the "Roachvale Sores<br />
Incopperated." All that the simple<br />
people have to do is to pay in their<br />
money, patronize the store, and<br />
every night the money from the<br />
cash register will be sent to the<br />
great and good and self-sacrificing<br />
men at the central office, and there<br />
you have a Co-operative Movement!<br />
Here is where the key to "How<br />
to Know the Wild Things" comes in.<br />
Here are a few acid tests:<br />
<strong>CO</strong>-<strong>OPERATION</strong><br />
(1) Ask to see the by-laws of the<br />
wonderful society. Is it co-opera<br />
tive? Has each member one vote<br />
and no more? Does capital receive<br />
not more than a fixed interest rate?<br />
What is done with the surplus sav<br />
ings? Do the members get them in<br />
proportion to their patronage?<br />
(2) Ask to see the "organizer's"<br />
credentials from some labor body.<br />
It is a good thing to know just what<br />
labor leaders, if any, are behind the<br />
scheme. Some of the fakers now in<br />
jail carried good labor credentials.<br />
(3) Under what state law is the<br />
society incorporated? Is it incor<br />
porated as a co-operative society?<br />
Look out here for the "deed of<br />
trust" game that puts the control of<br />
the whole business in the hands of<br />
three trustees, who can take out of<br />
it all they want and the members<br />
have no say.<br />
(4) How are the officers elected,<br />
or are they appointed? Who ap<br />
points them?<br />
(5) How much is the organizer<br />
paid for selling stock or getting<br />
members, and who pays him? Is<br />
he paid a commission on sale of<br />
stock?<br />
(6) How much control of this<br />
store and its funds will the members<br />
have after it is started ?<br />
(7) What are the members going<br />
to get for the money they put in?<br />
How much goods will be put on the<br />
shelves ?<br />
There are smart organizers who<br />
actually give what are apparently<br />
satisfactory answers to all of these<br />
questions. On the Pacific coast one<br />
of these carried a different set of<br />
by-laws in his pocket from the by<br />
laws of his organization. But these<br />
fellows get fussed when the hard<br />
questions are asked. Just keep<br />
poking the questions at them and<br />
see if they respond to the test of<br />
genuine Co-operation. Some of<br />
these things are not even toadstools.<br />
Some are like the Congressman and<br />
his seeds: his. arguments won't go<br />
down and his seeds won't come up.<br />
And one more point: Be sure<br />
that you know the right answer<br />
yourself when you ask the question.<br />
These chaps have much skill in<br />
making people think the wrong an<br />
swer is the right answer.<br />
DON'T ASK TOO MUCH OF THE<br />
STORE<br />
We have a letter from a society in<br />
Missouri which says:<br />
"Our store is doing well, but unable to<br />
make a net earning sufficient to satisfy all<br />
members. They feel that they should re<br />
ceive not less than 10 per cent savings<br />
returns every six months. The 'cash-and-<br />
carry' stores owned by the A. & P. Co.,<br />
and located all over town, seem to give us<br />
the most trouble. Our members want their<br />
store to compete with this chain of stores,<br />
while we maintain a good delivery system<br />
which is demanded by our stockholders."<br />
This is hardly fair. Still, we have<br />
heard of a society where some of<br />
the members made purchases at the<br />
A. & P. "cash-and-carry" store and<br />
brought their packages around to<br />
the co-operative store and asked<br />
the manager to send them home in<br />
the Co-op, delivery truck!<br />
Any member of a co-operative<br />
society who is going into a private<br />
profit store to buy something that he<br />
could get at his own store should<br />
stop and ask himself a few ques<br />
tions: Is it fair to the other mem<br />
bers? Have not they the same right<br />
to be disloyal to our store that I<br />
have? If they should all do the<br />
thing that I am thinking of doing<br />
how long would we have a co-oper<br />
ative store? Do I want the co<br />
operative store to fail or succeed?<br />
If it fails who will be responsible<br />
and how much better off or worse<br />
off will the people of this town be?<br />
Am I playing the game fair? These<br />
are some of the questions he should<br />
ask himself.<br />
But there are other questions that<br />
a still bigger man will ask himself:<br />
Suppose that I do save a few cents<br />
in this A. & P. store; do I never
spend any money for a good cause?<br />
I can afford to go to the movies once<br />
in a while; I smoke, I buy a drink<br />
occasionally, I buy a capitalist pa<br />
per every day that lies to me about<br />
my job and my store; I would be<br />
better off to save that money and<br />
spend it on something that is good,<br />
on something that is building a bet<br />
ter world, not only for me, but for<br />
my children? Suppose it does cost<br />
me a little more in my co-operative<br />
store; if I stand by it and make it<br />
increase, then it will save me money<br />
in the end. We started this store of<br />
ours in good faith; the fellows who<br />
want to make profits out of us have<br />
tried to destroy it; will I be one to<br />
help them? How are the working<br />
people ever going to learn to run<br />
business for themselves unless we<br />
stick by our own undertakings? If<br />
this private profit store sells cheap<br />
er than my store does, why don't I<br />
help our board find out the reason<br />
why, and then turn in and make our<br />
store do as well? There is a reason<br />
for everything; am I the sort of fel<br />
low who just gives up and acknowl<br />
edges that he is licked and can't<br />
make a success of Co-operation, or<br />
did I mean business when I joined<br />
the co-operative society? Am I a<br />
Co-operator or a piker?<br />
But suppose that the co-operative<br />
store does sell as cheap, or cheaper,<br />
than the private store. Usually, the<br />
co-operative store, in the long run,<br />
is cheapest. Then, what is the mem<br />
ber to do? The short weight, the<br />
adulterations, the—I don't like to<br />
mention all of the things that the<br />
profit business has learned to put<br />
over on the innocent consumer, but<br />
if any Co-operator will ask himself<br />
one more simple question, he will be<br />
thinking about something that may<br />
help him much: Where am I apt to<br />
fare best, at the hands of the man<br />
who is dealing with me for the one<br />
and only purpose of making as<br />
much money out of me as he can, or<br />
<strong>CO</strong>-<strong>OPERATION</strong> <strong>CO</strong>-<strong>OPERATION</strong><br />
at my own hands, in my own store,<br />
in which I have as much of a voice<br />
as anybody, and which is run not to<br />
make money out of me, but to serve<br />
me?<br />
Don't ask too much of the store;<br />
but remember that the store has an<br />
equal right to ask something of the<br />
member.<br />
THE STATE GOES TO THE <strong>CO</strong><br />
OPERATIVE SCHOOL<br />
The Minister of the Interior, Dom-<br />
inicus, before the Prussian Landtag<br />
on the 14th of October, according to<br />
"Le Co-operateur Suisse," of Novem<br />
ber 2, 1921, said that in the se<br />
lection and in the advancement of<br />
high officials, it was necessary from<br />
now on to pay particular attention<br />
to the development of the modern<br />
social spirit of the candidates. One<br />
of the best means for encouraging<br />
this spirit is, in his opinion, to send<br />
these candidates to work for a pe<br />
riod of several months in the service<br />
of the great co-operatives, or in the<br />
"maisons du peuple," in order to<br />
find out a little what is the life of<br />
the worker and the real point of<br />
view of the worker, and also to<br />
learn from them the methods of<br />
economic administration.<br />
In another declaration on the 18th<br />
of October, this same Minister an<br />
nounced that the Co-operative<br />
Union of Hamburg is readily dis<br />
posed to lend itself to this purpose.<br />
Thus we see that the State is com<br />
ing to school to the Co-operative<br />
Movement. This is only the begin<br />
ning of the educational work which<br />
the world will yet witness. Today<br />
in Europe the co-operative societies<br />
are carrying on economic affairs<br />
more efficiently than either the gov<br />
ernments or capitalistic business.<br />
The Co-operative Movement must<br />
be the teacher and leader.<br />
J. P. W.<br />
L<br />
EUROPEAN IMPRESSIONS<br />
<strong>CO</strong>-<strong>OPERATION</strong> IN GERMANY<br />
Every day for a month we had<br />
visited co-operative societies by pre-<br />
arrangement and introduction. We<br />
had seen the great institutions in the<br />
great centers. Now we determined<br />
to go to some small city of which we<br />
knew nothing. It might have a co<br />
operative society or it might not; we<br />
would take a chance. Niirnberg<br />
would do—half way between Carls<br />
bad and Basel. We did not know a<br />
soul there nor the name of a hotel.<br />
Just for variety's sake we hoped for<br />
something small, struggling and in<br />
significant, or new, or nothing at all—<br />
something that might make us think<br />
of home. We refrained from speak<br />
ing the word until we sat down to<br />
dinner in the hotel; then, with tim<br />
orous misgivings, I asked the waiter<br />
if there were a co-operative society<br />
in Niirnberg. His face beamed with<br />
interest. Of course! He was a mem<br />
ber. How many members? He did<br />
not know, but the membership must<br />
be about 50,000. How many fami<br />
lies in Niirnberg? About 100,000<br />
(400,000 population). The telephone<br />
book revealed nearly a page of num<br />
bers given to the society. We went<br />
to its central office next morning<br />
unannounced and sent in our cards<br />
to the directors. We were invited in<br />
and saw spread on the table of the<br />
president of the board a copy of a<br />
co-operative journal containing my<br />
Hamburg speech which they had the<br />
goodness to say they had read with<br />
interest. Then the same arrange<br />
ments were made for our entertain<br />
ment as we had experienced every<br />
where in Germany. An automobile<br />
was ordered for us, guides to take<br />
us to the various plants and a pro<br />
gram of co-operative sight-seing laid<br />
out.<br />
The enthusiastic waiter was wrong;<br />
the Niirnberg society has only<br />
40,000 members, but that means that<br />
nearly one-half of the families in that<br />
wonderfully clean and quaint old<br />
By J. P. WARBASSE<br />
(Concluded)<br />
town are connected with the society.<br />
And its growth is steady and sure.<br />
The society has 30 stores, a large<br />
banking business, a warehouse, a<br />
bakery, and a number of dwellings<br />
for the members. The bakery has 23<br />
double ovens—that means 46 ovens.<br />
The largest private bakery in Niirn<br />
berg has 4 double ovens. The bakery<br />
of this society is capable of baking all<br />
of the bread that is consumed in the<br />
city. Besides the model dwellings<br />
that the society rents to its members,<br />
there is a co-operative building soci<br />
ety, which has created a garden city<br />
in the suburbs which far surpasses<br />
anything that the English garden<br />
cities have attained. This society to<br />
day, despite the high cost of building,<br />
is going on with extensive house con<br />
struction. In America the working<br />
man pays one-fourth of his income<br />
for the rent of a thing he calls home.<br />
In Niirnberg the workingman Co-<br />
operator pays one-fifteenth of his in<br />
come for the rent and up-keep of a<br />
whole house which his society owns—<br />
and it is a house which he takes pride<br />
in calling "home." It is well built—<br />
brick, covered with gray stucco; a<br />
red tiled roof; a garden of vegetables,<br />
fruit trees and grapes in the rear;<br />
rose trees in the front yard;,' and<br />
climbing vines over the front of the<br />
house. I take for example the house<br />
of a railroad worker which I inspected<br />
from cellar to attic; his salary is<br />
15,000 marks a year, and he pays 595<br />
marks yearly rental. This rental will<br />
shortly be increased to 900 marks;<br />
but even at that it is less than one-<br />
fifteenth of his salary.<br />
These brief glimpses of German<br />
Co-operation may be regarded as typi<br />
cal of what is going on all over Ger<br />
man-speaking Europe. Co-operation<br />
has been seized upon by the people<br />
as the most practical means to win<br />
democracy. The German Socialists<br />
now realize that they have been mis<br />
led by Lassalle and Marx into exag-
<strong>CO</strong>-<strong>OPERATION</strong><br />
gerating the possibilities of political<br />
action. A Socialist leader and mem<br />
ber of the Bavarian Parliament told<br />
me that the teachings of Lassalle had<br />
done great harm. As a result of a<br />
newer understanding, the German<br />
working people, while still retaining<br />
an interest in political action, are giv<br />
ing their real serious attention to Co<br />
operation as offering the greatest<br />
hope. They have learned by bitter<br />
experience that political regimes may<br />
come and go, but Co-operation is con<br />
stant. In no other field of action do<br />
they have such good prospects of<br />
holding what they gain.<br />
I went to Germany expecting to<br />
find the Co-operators poor, hungry<br />
and distressed. Germany is poor,<br />
hungry and distressed; but these con<br />
ditions do not apply to the Co-opera<br />
tive Movement; the distress is of po<br />
litical origin. The Co-operative Move<br />
ment is independent and self-reliant<br />
and comparatively prosperous. I have<br />
studied Co-operation in ten of the<br />
leading countries of the world; and<br />
I can say that the German Movement<br />
possesses qualities which will tend to<br />
make it supreme. Germany leads the<br />
world in science and technical effi<br />
ciency. Co-operation is taking advan<br />
tage of these qualities. It is em<br />
ploying experts. This democratic or<br />
ganization of the people is hiring sa<br />
vants to do the things which the plain<br />
people cannot do.<br />
The plan is succeeding. Every<br />
where is efficiency—the most marvel-<br />
ous efficiency. In the administration<br />
of financial matters are experts—the<br />
sort of men who in our country be<br />
come the masters of finance; in Ger<br />
many the Co-operative Movement is<br />
getting them. At the head of the<br />
factories are directors who embody<br />
the genius for organization and ad<br />
ministration. Under them are tech<br />
nical experts—engineers, chemists,<br />
technicians. The chemical laboratory<br />
is found in every great factory and<br />
industry, not only making tests of<br />
products but inventing new methods<br />
and synthetic substances. Even in<br />
the warehouses, the chemical labora<br />
tory tests commodities bought and<br />
sold. The value of this use of science<br />
is beyond calculation.<br />
Compared with other countries, the<br />
German Movement is also character<br />
ized by cleanliness and by lack of<br />
waste. I think the two are related.<br />
I have visited soap factories and pre<br />
serve factories in several countries.<br />
In some the floors were slippery with<br />
soap or sticky with preserves. But<br />
in the German factories the floors and<br />
side walls were of tile, and always<br />
spotlessly clean. Perfect machines<br />
were doing the work better than the<br />
unsteady human hand. Labor saving<br />
devices are much employed. I recall<br />
a great nine-story building with an<br />
enormous output; and think of my<br />
wonderment at the silence and the<br />
small number of people—a beautiful<br />
building, artistic in every detail, stair<br />
ways of soft colored glazed porcelain,<br />
hand-carved wood-work, paintings,<br />
vases, stained glass windows,, and<br />
scrupulous cleanliness to the utmost<br />
corner. Here was order, quiet, and<br />
a great silently moving current from<br />
the intake of raw materials to the<br />
out-go of finished product. Here<br />
were silently moving passenger ele<br />
vators without an attendant; bub<br />
bling founts of water on each floor;<br />
a spittoon at each stair landing,<br />
through which fresh water constantly<br />
flowed; a dining room on the top floor<br />
for the employees, where one's order<br />
was waiting for him already served<br />
and paid for and warm st his place<br />
the minute he walked in the room;<br />
a heating system for winter, which<br />
could use either coal, coke or crude<br />
oil. All of the machinery of this<br />
great plant was run by an engine.<br />
I have been in many engine rooms;<br />
they are greasy, dirty and hot, and<br />
so are the engineers. This was the<br />
latter part of July. The door opened<br />
and I walked into the engine room<br />
of this co-operative plant; a single<br />
great square room of lofty height;<br />
the floor was of tile; the side-walls<br />
were glazed green art-tile. There was<br />
no spot or stain. The room sug<br />
gested an enormous Roman bath<br />
chamber, but for the fact that in<br />
the center stood two Diesel engines.<br />
The only motion to be seen were the<br />
two huge fly wheels, silently revolv<br />
ing, creating and storing power. No<br />
human being was in the room. These<br />
engines, luxuriantly housed, were<br />
quietly doing the work of thousands<br />
of hands while no eye watched. I<br />
did not see him, but it is possible<br />
that the engineer sat reading in his<br />
study, twenty yards away, inter<br />
rupted only by the indicator which<br />
informed him that visitors had en<br />
tered the engine room.<br />
Already the membership of the<br />
German Co-operative Movement has<br />
surpassed that of the British Move<br />
ment. I am persuaded that we shall<br />
find Germany taking the lead of the<br />
world in this field unless the German<br />
people are still further suppressed<br />
and crushed by that greatest modern<br />
atrocity which sprang from the loins<br />
of Wilson, George and Clemenceau<br />
and was spawned in the womb of<br />
Versailles. There is something in the<br />
German genius that makes for Co-<br />
<strong>CO</strong>-<strong>OPERATION</strong><br />
opeiation. Along the French border<br />
one sees the change. The French<br />
towns are poor in Co-operation; the<br />
German towns are rich. In Switzer<br />
land, the German population have pro<br />
duced a Co-operative Movement<br />
which in many respects is the best<br />
the world has to offer; in French and<br />
Italian Switzerland the Movement<br />
has about one-half the potency. In<br />
dismembered Austria it is the Ger<br />
man population that is taking the<br />
lead.<br />
This Movement in Germany had<br />
attained to its highest development<br />
just before the war. It was ready<br />
for a great forward swing when the<br />
war burst upon Europe and shattered<br />
its hopes. But that impetus is still<br />
operative. The hope is that the pol<br />
itical governments will be satisfied<br />
with the damage they have wrought<br />
and will leave the people unmolested<br />
to work out their problems for the<br />
saving of humanity.<br />
ROCHDALE SUCCESS AT SAULT STE. MARIE<br />
The Soo Co-operative Mercantile<br />
Association of Sault Ste. Marie,<br />
Michigan, was organized in 1913,<br />
with a capitalization of $3,000, a<br />
very small beginning. But this as<br />
sociation was founded by men who<br />
saw in true Rochdale Co-operation<br />
the very principles, which, if fol<br />
lowed, would bring success; and al<br />
though they met with many an ob<br />
stacle during the first few years of<br />
their existence, they clung tena<br />
ciously to the above principles, with<br />
the result that their record of<br />
growth has shown what can be ac<br />
complished.<br />
During the first three years after<br />
organizing, this association was<br />
very unfortunate in securing two<br />
different managers who were not<br />
business men; but what was a more<br />
serious drawback these managers<br />
were not real Co-operators. This<br />
resulted as might be expected. The<br />
turning of the keys by the sheriff<br />
By W. H. CLOSSER<br />
was looked for daily. At this point<br />
came the real constructive ability of<br />
the board of directors, and they<br />
took hold with the determination to<br />
make the business go. A new young<br />
manager was decided upon. He<br />
was taken from the force of clerks;<br />
and this young man certainly<br />
worked. He not only worked, but<br />
listened to advice of the board. To<br />
make a long story short, there has<br />
been true Co-operation ever since.<br />
This association is very frank in<br />
their praise of the help derived<br />
from The Co-operative League of<br />
America, through Dr. J. P. War-<br />
basse, who visited them a year ago.<br />
One of the members of this Soo As<br />
sociation was elected last year at<br />
the convention at Cincinnati, as a<br />
member of the Board of Directors<br />
of The League.<br />
The following comparative state<br />
ment shows the business done since<br />
1918. The 1921 prices from good
8 <strong>CO</strong>-<strong>OPERATION</strong><br />
authority decreased about 30 per<br />
cent from the prices obtained dur<br />
ing the year 1920:<br />
1918<br />
January ........ $3,511.88<br />
February ....... 3,347.35<br />
March .......... 4,207.21<br />
April ........... 3,188.06<br />
May ............ 4,983.86<br />
June ............ 5,777.50<br />
July ............ 6,260.54<br />
August .......... 5,450.59<br />
September ....... 6,110.13<br />
October ......... 6,581.65<br />
November ....... 5,342.41<br />
December ........ 5,236.45<br />
1920<br />
January ........ $15,625.40<br />
February ..... 14,407.40<br />
March .......... 19,288.38<br />
April .......... 19,480.09<br />
May ........... 22,930.36<br />
June ........... 22,681.54<br />
July ........... 24,445.68<br />
August ......... 24,300.72<br />
September ...... 22,416.87<br />
October ........ 25,653.04<br />
November ...... 22,888.41<br />
December ...... 21,415.52<br />
1919<br />
$6,830.98<br />
8,307.92<br />
7,951.41<br />
10,879.07<br />
12,916.52<br />
13,734.87<br />
15,824.55<br />
16,627.51<br />
15,479.27<br />
16,855.57<br />
17,372.01<br />
22,585.98<br />
1921<br />
$25,800.36<br />
22,756.59<br />
27,671.59<br />
25,188.91<br />
24,713.16<br />
24,031.48<br />
26,510.32<br />
27,950.95<br />
27,692.77<br />
26,197.06<br />
24,408.95<br />
This association installed a very<br />
modern electric bakery two years<br />
ago, with a daily capacity of 1,500<br />
loaves, besides all its pastry baking.<br />
This plant is now far too small to<br />
take care of the increasing demand,<br />
and the association plans to build<br />
an addition to its large building,<br />
and will erect a modern oven amply<br />
large for this increased business.<br />
This association is not content sim<br />
ply to maintain their present status,<br />
but they plan in the near future to<br />
completely stock the second floor of<br />
their building with dry goods, boots<br />
and shoes, having in view the final<br />
establishment of a department store.<br />
The Soo Association was one of<br />
the first to lead out for the estab<br />
lishment of a Co-operative League<br />
in Upper Michigan at the time the<br />
war broke out. But on account of<br />
the following depression a district<br />
League was not formed. They are,<br />
however, buying in a wholesale way<br />
many of the staple groceries, and<br />
by so doing are cutting out the<br />
profits of at least one middleman.<br />
This Soo organization own their<br />
own three-story stone building,<br />
which they term the Main Store,<br />
and are operating a bakery, two<br />
meat markets, and a chain of four<br />
additional grocery stores. We pre<br />
dict a continued growth as long as<br />
they stand by and maintain the true<br />
Rochdale principles.<br />
THE TERRORIZATION OF UKRAINIAN<br />
<strong>CO</strong>-<strong>OPERATION</strong><br />
There is no people among whom<br />
Co-operation has a more national<br />
character than in Ukrainia. In the<br />
Ukraine Co-operation and polit<br />
ical action for national independ<br />
ence are identical. During the time<br />
of the Czar Ukrainian Co-operation<br />
was regarded by the Russian ruling<br />
class as a poorly disguised form of<br />
the Ukrainian nationalization move<br />
ment; and only the mischance of<br />
war compelled the Russian govern<br />
ment to permit the development of<br />
initiative and freedom to the least<br />
degree. However, up to the time of<br />
the revolution, the Ukrainian Co<br />
operation Movement had existed un<br />
By MARGARET BLAZOWSKA<br />
of Vienna<br />
der the pressure of the government.<br />
During the period of national re<br />
construction (1917-20) the Ukrai<br />
nian Co-operative movement was<br />
brought to full development.<br />
This movement is completely<br />
unified with the life of the peo<br />
ple, and has been the fountain-<br />
source of the political power of<br />
the Ukraine. Many people upon<br />
the political stage have come out of<br />
this movement. Therefore, it is<br />
easy to explain that the Ukranian<br />
Co-operative Movement is always<br />
brought to the fore in political af<br />
fairs and the intolerance within the<br />
movement brought out. People who<br />
were neutral in the nationalization<br />
movement and who worked in the<br />
purely co-operative field in the Co<br />
operative Movement are pointed out<br />
as suspicious.<br />
Finally, the nationalization move<br />
ment in Ukrainia has been given<br />
the character of a purely political<br />
party of "evil nature." The people<br />
want to be free from Russia.<br />
In view of the above facts, it was<br />
but natural that the Ukrainian Co<br />
operation Movement was oppressed<br />
and the terrorism of the Bolsheviki<br />
was instituted as a result of the oc<br />
cupation of Ukrainia by the Bolshe<br />
viki. Unfortunately, certain irre<br />
sponsible Co-operators, who contin<br />
uously change their political opin<br />
ions as a chameleon its color, for<br />
want of a Soviet organization in the<br />
Ukrainia, use the political situation<br />
to exterminate the "unpolitical peo<br />
ple" who seem to be dangerous for<br />
the above reasons.<br />
During the month of July of the<br />
past year, the Extraordinary Com<br />
mission, in Odessa, arrested all active<br />
managers of the Central Ukrainian<br />
societies, officials, members who came<br />
in from the country, and also the<br />
janitors of the co-operative union.<br />
The most dastardly crime was the<br />
killing of the Ukrainian Co-<br />
operators. The following were<br />
murdered: Members of the board<br />
of directors of the Consumers'<br />
Union of Odessa and the members<br />
of the board of directors of a<br />
branch of the Dniprossojus in Odes<br />
sa (engineer Boris Blazowsky), su<br />
pervisory board member of the Con<br />
sumers' Union in Odessa (Tit Klim-<br />
iwitsch), directoress of the educa<br />
tional department of the Dniprosso<br />
jus in Odessa (Katerin Kamarets-<br />
ka), and the secretary of the Odes<br />
sa branch of the Ukrainian Agricul<br />
tural Co-operative Union (John<br />
Sirenko).<br />
These innocent people had en<br />
gaged in no political activities. They<br />
had gone about their co-operative<br />
business, and remained true Co-<br />
operators at their posts to the last<br />
<strong>CO</strong>-<strong>OPERATION</strong><br />
moment, in the conviction of the jus<br />
tice of the government and their<br />
own innocence. On the other hand,<br />
others fled to the villages and<br />
sought to hide themselves upon the<br />
outbreak of the terror.<br />
From the above it is evident what<br />
difficulties co-operative workers<br />
had to contend against. The sad<br />
dest fact is that, on account of the<br />
political conditions, no opportunity<br />
is allowed to care for the poor fam<br />
ilies of the murdered Co-operators.<br />
It should be the first duty of Co-<br />
operators to care for the poor,<br />
bereft children of the murdered<br />
comrades, but this is made difficult<br />
or impossible.<br />
THE SEASON'S GREETINGS!<br />
With those who work for the cause<br />
of Co-operation, who give of them<br />
selves and of their substance, we join<br />
heart and hand in high hopes and<br />
renewed allegiance. May the New<br />
Year bring us nearer to the realiza<br />
tion of our fond ideals.<br />
As we look across the year that<br />
has passed we see the gains made,<br />
the positions held, and the new foun<br />
dations laid. Clouds have cleared<br />
away. Steadily the structure in this<br />
land of ours is building. It does not<br />
rear itself; it is the work of human<br />
hands. For those who have given<br />
help, we are thankful. For those who<br />
have obstructed, we have only the<br />
hope that their feet may yet find the<br />
path.<br />
May we consecrate ourselves anew<br />
to the Cause which brings upon its<br />
wings peace, justice, and good-will<br />
among men. May the strength of<br />
those whose hands hold aloft the<br />
light increase, and may their number<br />
multiply.<br />
Greetings, good wishes, and success<br />
to all! We go forward together, to<br />
ward the sunny slopes of the Land of<br />
Cooperation.<br />
The Executive Board<br />
of<br />
The Co-operative League.
10 <strong>CO</strong>-<strong>OPERATION</strong><br />
POLICIES—PRACTICAL AND PRESSING<br />
FINANCING PROGRESS<br />
Who believes strongly enough in<br />
the civilizing power of the Co-oper<br />
ative Movement to be willing to<br />
help finance it? We are going to<br />
have a great Movement in the<br />
United States some day. But when?<br />
That depends on the amount of<br />
foundation work we can do now.<br />
Maybe we shall have a great Move-<br />
mentment here in twenty years<br />
from now; maybe in ten; maybe in<br />
five years. Those who are striving<br />
for it know the obstacles that must<br />
be overcome; and they know that<br />
the educational and guiding work<br />
of The League is necessary to give<br />
the substantial results.<br />
Already far-seeing people have<br />
written in their wills bequests for<br />
carrying on the work of The League.<br />
But the work must be pushed for<br />
ward today. We want the well-<br />
wishers of the Co-operative Move<br />
ment to live long; we want them<br />
to see great results in their own life<br />
time. Who will add immediate help<br />
for this cause?<br />
The Executive Board of The<br />
League are carrying too great a bur<br />
den. Each is doing the work of<br />
two. Our offices in New York are<br />
now located in four different places.<br />
We need a building of our own,<br />
where we can concentrate our ad<br />
ministrative work. Who will give<br />
The League a building? We have<br />
to have it; why delay?<br />
Ten district advisers are needed<br />
to cover the United States. We<br />
know just the work these advisers<br />
should do; who will finance them?<br />
A district adviser for New England,<br />
one for the Pacific States, and one<br />
for the eight other districts could<br />
save to the Co-operative Movement<br />
and to the people ten times their<br />
cost. Who will give The League the<br />
money to finance an adviser in one<br />
district? Where are the ten peo<br />
ple to finance the whole field?<br />
The executive office work of The<br />
League is not met by the dues paid<br />
by the member societies. Still more<br />
help is needed; where is it coming<br />
from?<br />
The Labor movement has sunk<br />
millions of dollars in fake co-opera<br />
tives and spurious ventures during<br />
the past twelve months; enough to<br />
finance for fifty years the most<br />
splendid co-operative educational<br />
program that our fondest dreams<br />
could conceive of.<br />
And The League has earnestly ad<br />
vised the working people and<br />
begged them not to put money into<br />
these very enterprises; but the<br />
workers in the United States are<br />
not yet ready to lead the way. They<br />
still must be shown and educated<br />
by those who have the understand<br />
ing. In the course of time the pow<br />
er as well as the leadership will be<br />
theirs; but these are the pioneer<br />
days. The call today is for pio<br />
neers.<br />
Now we are laying the founda<br />
tions for a better civilization. We<br />
need help. Who will finance the<br />
following needs:<br />
(1) A building for the League,<br />
so that Co-operation in the United<br />
States may have a central home of its<br />
own, and a fund to endow it, $100,000.<br />
(2) A house for The League with<br />
out endowment, $50,000.<br />
(3) Ten district advisers, one for<br />
each of the ten districts in the Unit<br />
ed States, at $3,000 a year each,<br />
$30,000.<br />
(4) A school with 20 scholar<br />
ships for training district advisers,<br />
store managers, co-operative execu<br />
tives and teachers in the Movement,<br />
for a year, $20,000.<br />
(5) Four Secretaries to do the<br />
essential work of the central office<br />
at $2,500 a year each, $10,000.<br />
(6) A national traveling advis<br />
er, to visit societies in every part of<br />
the country and advise them in mat"<br />
ters of education and administra<br />
tion, and all expenses, $5,000.<br />
(7) One much needed district<br />
adviser at once in a district greatly<br />
suffering for want of expert advice<br />
and guidance, $2,500.<br />
(8) The yearly deficit on the<br />
printing of educational literature,<br />
$1,000.<br />
(9) A new typewriter, $100.<br />
(10) Individual, non-voting mem<br />
bership in the League, $1.<br />
All of these things are going to<br />
come. We are going to have a<br />
great Co-operative Movement in the<br />
United States. But when? Much<br />
depends upon the response of those<br />
who are willing to finance perma<br />
nent progress.<br />
TECHNICAL ADVICE TO THE<br />
LEAGUE'S MEMBERS<br />
The League has issued a bulletin<br />
to its affiliated member societies for<br />
the month of December on the In<br />
come Tax, giving legal advice on the<br />
items which are not subject to taxa<br />
tion, etc.<br />
Monthly bulletins are sent regu<br />
larly to all affiliated societies. Dur<br />
ing the past year these bulletins<br />
have covered the following sub<br />
jects :<br />
Advertising, suggestions for co<br />
operative posters.<br />
Labor costs and labor efficiency.<br />
Practical instructions to clerks.<br />
Co-operative education and the<br />
employees.<br />
Bookkeeping advise and hints on<br />
overhead.<br />
Women's guilds.<br />
How to give credit.<br />
Advice on share capital.<br />
A model report form for financial<br />
statements.<br />
Advice on marketing conditions<br />
and buying.<br />
Societies affiliated with The<br />
League get these bulletins every<br />
month free of charge.<br />
<strong>CO</strong>-<strong>OPERATION</strong> 11<br />
WORD AND SYMBOL FOR THE<br />
LEAGUE<br />
The contest for a word and sym<br />
bol for The League, announced in<br />
<strong>CO</strong>-<strong>OPERATION</strong> December, 1920,<br />
and March, 1921, has closed with<br />
over a hundred competitors making<br />
contributions. Many of the sym<br />
bols submitted are beautiful and ex<br />
pressive works of art. Some show<br />
real genius. The encouraging fact<br />
is that they display a large grasp<br />
of the significance of Co-operation.<br />
Many represent fine allegorical con<br />
ceptions and co-operative symbol<br />
ism. Unfortunately, none of the<br />
better pictures were simple enough<br />
to make reproduction easy, nor<br />
could they be grasped quickly and<br />
readily carried by the eye. The<br />
Executive Board has reluctantly de<br />
cided not to accept any symbol that<br />
has yet been presented. It further<br />
more announces that no word that<br />
has been submitted has been found<br />
acceptable. Contestants desiring to<br />
have their drawings returned may<br />
communicate with The League.<br />
HOW TO BOOST THE MEETINGS<br />
The Tucumcari Co-operative Mer<br />
cantile Company, of Tucumcari,<br />
New Mexico, has a clever plan for<br />
making all the members turn out for<br />
the monthly business meeting.<br />
Every man, woman and child as he<br />
enters the meeting is given a num<br />
bered ticket. At the close of the<br />
meeting two of these tickets are<br />
drawn. The person holding the first<br />
number receives a fine 12-pound<br />
ham, and the second lucky person<br />
gets a 48-pound sack of flour. Need<br />
less to say, the attendance is large<br />
at such meetings.<br />
INDEX TO <strong>CO</strong>-<strong>OPERATION</strong><br />
VOL. VII., 1921<br />
Subscribers to <strong>CO</strong>-<strong>OPERATION</strong><br />
wishing the index to Vol. VII., 1921,<br />
may have the same sent free of<br />
charge by sending a two-cent stamp<br />
to The Co-operative League, 2 West<br />
13th St., New York, N. Y.
12 <strong>CO</strong>-<strong>OPERATION</strong> <strong>CO</strong>-<strong>OPERATION</strong> 13<br />
MILK STRIKERS ORGANIZE A<br />
<strong>CO</strong>NSUMERS' <strong>CO</strong>-OPERA<br />
TIVE CREAMERY IN<br />
CLEVELAND<br />
The dairy workers of Cleveland,<br />
Ohio, who are on strike to resist the<br />
attempt to cut their wages $6.50<br />
per week, have followed the ex<br />
ample of their fellow-workers in<br />
Minneapolis, and have organized a<br />
Consumers' Co-operative Creamery.<br />
It will be remembered that the<br />
Franklin Co-operative Creamery<br />
Association, now doing a business<br />
of more than $100,000 a month,<br />
grew out of a lockout of the milk<br />
drivers about two years ago. At<br />
the invitation of the milk workers<br />
of Cleveland, some active members<br />
of the Minneapolis Co-operative<br />
Creamery got busy in Cleveland,<br />
showing the milk drivers how to or<br />
ganize. A committee of the strikers<br />
then went on to Minneapolis to<br />
study the organization methods at<br />
first hand.<br />
The new Cleveland Creamery is<br />
to be called The City Co-operative<br />
Dairy Company. The society is in<br />
corporating, with a capital stock of<br />
$20,000, which is to be increased as<br />
more capital is required. The ma<br />
chinery for the plant is being or<br />
dered, and a lease has been signed<br />
for premises. Farmers in the vicin<br />
ity are giving their heartiest sup<br />
port to this new co-operative dairy,<br />
which will enable them to get a fair<br />
price for their products. In the<br />
meantime, collectors are out for sub<br />
scriptions to the stock of the co<br />
operative, not only among the con<br />
suming public, but among the dairy<br />
workers as well. Shares sell for $10<br />
each, and no member may own<br />
more than $1,000 worth. No mem<br />
ber has more than one vote, and<br />
proxy voting is not allowed. A rea<br />
sonable rate of interest will be paid<br />
on shares, and it is planned to set<br />
aside reserve and educational funds,<br />
NEWS AND <strong>CO</strong>MMENT<br />
after which savings-returns will be<br />
paid out of the balance.<br />
The City Co-operative Dairy will<br />
be a consumers' co-operative, and it<br />
is designed to deal justly with the<br />
milk producer, the workers and the<br />
consumers. The producer is as<br />
sured of a fair price, the worker of<br />
living wages, and the consumer will<br />
get pure products on the co-opera<br />
tive basis. During eight months of<br />
operation, the Franklin Co-opera<br />
tive Creamery in Mineapolis made a<br />
net profit of $31,689.00, which will<br />
be distributed among the consum<br />
ers. What is more, they have<br />
forced down the price of milk 3<br />
cents a quart, since they began<br />
business, and have furnished milk<br />
free from adulterants. What has<br />
been done in Minneapolis can be<br />
done in Cleveland and elsewhere.<br />
When the strike broke out in<br />
Cleveland, the city government at<br />
tempted to take over one of the<br />
large milk depots and distribute<br />
milk to the consumers by means of<br />
the city trucks. An injunction is<br />
sued by a Judge did away with this<br />
effort. Now the strikers and the<br />
consumers are taking the situation<br />
in hand themselves. What the city<br />
government cannot do, because of<br />
its limited powers, or because of the<br />
prohibitions of the courts, the Co-<br />
operators are doing today.<br />
"CENTRAL STATES <strong>CO</strong>-OP"<br />
FEEDS KANSAS STRIKERS<br />
The miners in Kansas who have<br />
been out on strike for many months<br />
as a protest against their enslave<br />
ment by the Kansas Industrial Court<br />
Law, will have received $200,000<br />
worth of foodstuffs from the Cen<br />
tral States Co-operative Wholesale<br />
Society by the time this magazine<br />
is printed. Forty carloads of flour,<br />
beans, bacon and other foodstuffs<br />
have been shipped to the striking<br />
miners, and more are on their way.<br />
At the November, 1921, conven<br />
tion of the United Mine Workers of<br />
District 12, in Illinois, the miners<br />
voted to assess themselves $1 per<br />
month per member, for the purpose<br />
of providing food free of charge for<br />
the Kansas coal miners. There are<br />
90,000 miners in Illinois contribut<br />
ing to this fund. The money thus<br />
collected is discharged through the<br />
Central States Co-operative Whole<br />
sale for food supplies. The Co-oper<br />
ative does not make a penny's profit<br />
on the transaction, the goods being<br />
charged against the strikers' fund<br />
at the wholesale cost. It should be<br />
remembered that the Illinois miners<br />
who are now supporting the Kansas<br />
miners are the backbone of the Co<br />
operative Movement in Illinois,<br />
which is now acting as the commis<br />
sary department of the labor move<br />
ment.<br />
The latest report to the Board of<br />
Directors of the Central States Co<br />
operative Wholesale Society is a<br />
good one. Manager Robert McKe-<br />
chan reported that in the three<br />
months ending October 15, the<br />
wholesale had sold $746,052 worth<br />
of goods, or about $3,000,000 a<br />
year. The overhead expenses of the<br />
wholesale were surprisingly low—<br />
1.1 per cent, and the overhead of<br />
the retail "union" stores affiliated<br />
with the society amounted to 10.3<br />
per cent, which is a low overhead<br />
for retail stores. The society is<br />
$60,000 richer than it was three<br />
months ago.<br />
Educational work is going for<br />
ward energetically. The Educa<br />
tional Director, E. D. MacDougall,<br />
is sending out study courses to local<br />
societies, literature is being distrib<br />
uted broadcast, and Mrs. Mabel W.<br />
Cheel, of The League, is being<br />
toured by the Educational Depart<br />
ment of the "Central States," giving<br />
illustrated lectures among the so<br />
cieties.<br />
A 50 PER CENT <strong>CO</strong>-OPERATIVE<br />
TOWN<br />
The "Villa Grove Co-operator,"<br />
commenting on an article published<br />
in last month's issue of <strong>CO</strong>-OPER<br />
ATION, informs us that over 50 per<br />
cent of the families of Villa Grove,<br />
Illinois, are Co-operators. We re<br />
print their figures, in the hope that<br />
some other societies can make claim<br />
to as good a record as the follow<br />
ing:<br />
In an article in the November number of<br />
"Co-operation," a statement is made that<br />
25 per cent of the people of Waukegan,<br />
Illinois, are buying their groceries, meat<br />
and milk from the co-operative store. Now,<br />
we claim a much better record here, and<br />
we think our figures will prove it. Qur 175<br />
members bought $22,661 worth of goods in<br />
the last quarter. We sold to non-members<br />
$14,760.43 worth, equal to about 115<br />
members, so we are supplying approxi<br />
mately 290 families. That is over half the<br />
total number of families in Villa Grove, so<br />
that we now claim that in proportion to<br />
the population of our city, we have more<br />
members than any city in Illinois. We also<br />
claim that our business with non-members<br />
is greater to the total business than any<br />
society in this state. If we are wrong we<br />
want to be shown.<br />
The Villa Grove Co-operative<br />
Society has a clever means for pop<br />
ularizing Co-operation in the homes.<br />
Prizes of $5.00, $3.00 and $2.00 are<br />
offered for the best three essays on<br />
Consumers' Co-operation written by<br />
high school pupils. The pupils<br />
whose parents are officers in the<br />
society are not eligible for the com<br />
petition.<br />
THROTTLING <strong>CO</strong>-<strong>OPERATION</strong><br />
In one of Roger Babson's finan<br />
cial bulletins to his wealthy clients<br />
some months ago, he said:<br />
"We have the schools. We have<br />
the pulpit. The employing class<br />
owns the press. There is practically<br />
no important newspaper in the<br />
United States but is theirs."<br />
This, of course, was not news to<br />
most of us. But it has not been an<br />
easy task to trace the control which<br />
advertisers and financial interests<br />
exercise over the press. The "Okla<br />
homa Leader," a fearless organ of
II' ' •]<br />
14 <strong>CO</strong>-<strong>OPERATION</strong> <strong>CO</strong>-<strong>OPERATION</strong> 15<br />
the farmers and workers of Oklaho<br />
ma, in its issue of December 10,<br />
has an editorial which exposes a<br />
specific instance of an attempt to<br />
throttle its advocacy of Co-opera<br />
tion, through pressure brought to<br />
bear by advertising concerns repre<br />
senting private commercial inter<br />
ests. We reprint the editorial in<br />
part:<br />
Co-operation not only saves us money,<br />
it not only adds to our well-being mate<br />
rially, but it cultivates that happy relation<br />
ship with each other which is so necessary<br />
to the accomplishment of larger things.<br />
Not only that, but it develops and demon<br />
strates our social power, and proves indis<br />
putably that the workers can do things<br />
when they try.<br />
Representatives of certain big advertis<br />
ing concerns in Oklahoma City called on<br />
the "Leader" recently. One of the com<br />
mittee observed that the "Leader" was an<br />
insistent advocate of co-operative buying<br />
and selling by the farmers and wage-<br />
earners, to which we pleaded guilty. "Why<br />
should we—how can you expect us to—<br />
advertise in the "Leader" when it is trying<br />
to develop a plan and system which will<br />
eventually put us out of business? Why<br />
should we patronize your paper and give<br />
you money which you are using to prepare<br />
a club to knock us in the head with?"<br />
The inference is plain. If the "Leader"<br />
would quit talking co-operation, if it would<br />
suspend or abandon its campaign of educa<br />
tion in behalf of co-operation, if it would<br />
quit telling the farmers and wage-earners<br />
how to escape successfully the plunder<br />
machine which is robbing them, then the<br />
"Leader" could have a ten-page paper, of<br />
which eight pages would be advertising,<br />
and it would be a money-making institu<br />
tion, independent of a question of circula<br />
tion. In other words, a newspaper that<br />
tells the truth, one that tells the farmers<br />
and wage-earners what is best for them,<br />
cannot live with the consent of the big<br />
advertisers.<br />
AN ARTISTS' <strong>CO</strong>-OPERATIVE<br />
Two hundred and fifty of the<br />
most prominent artists in New York<br />
City have launched a co-operative<br />
store, which will distribute artists'<br />
materials on which dealers have<br />
hitherto been making huge profits.<br />
A staff of experts has been selected,<br />
consisting of artists and chemists,<br />
to examine all materials offered for<br />
sale to artists and to pass on them as<br />
to their technical qualities. This is<br />
good news for the artists who have<br />
paid enormous prices for their<br />
paints, oils, canvases, modeling clay<br />
and other materials, only to receive<br />
inferior materials. Many an artist<br />
has painted a picture with paints<br />
supposed to be permanent, but<br />
which was ruined as soon as it was<br />
exposed to the light. A co-opera<br />
tive society has been hit upon as<br />
the remedy. And, as a matter of<br />
fact, Co-operation is the only rem<br />
edy.<br />
The artists are subscribing the<br />
capital with which to start their<br />
store. The society has also engaged<br />
an attorney to constantly look after<br />
the rights of artists in their rela<br />
tions with dealers. In addition to<br />
this, the artists are to publish their<br />
own magazine devoted to technical<br />
phases of their work.<br />
The organizers of this new de<br />
parture in co-operative effort in<br />
clude such well-known men as Rob<br />
ert Henri, George Bellows, Hayley<br />
Lever, William Auerbach Levy and<br />
other leaders among the painters<br />
and sculptors. Its first headquar<br />
ters is the National Arts Club,<br />
Grammercy Park.<br />
Any class of consumers who set<br />
their minds to it can do this same<br />
thing.<br />
MINNEAPOLIS LABOR STUDIES<br />
<strong>CO</strong>-<strong>OPERATION</strong><br />
A course in Co-operation is being<br />
given at the Workers' College at<br />
Minneapolis. The Franklin Co<br />
operative Creamery Association was<br />
responsible for the inauguration of<br />
this course. The idea was sug<br />
gested by members of the Co-oper<br />
ative to the teachers of the Work<br />
ers' College, and what is more, the<br />
Franklin Creamery is contributing<br />
$400 to subsidize this course. Quan<br />
tities of literature are being order<br />
ed from The League for the stu<br />
dents.<br />
I<br />
I<br />
WORKERS' <strong>CO</strong>LLEGES TEACH<br />
<strong>CO</strong>-<strong>OPERATION</strong><br />
Co-operation is now being taught<br />
in at least seven of the workers'<br />
colleges run in conjunction with<br />
the labor movement. Courses on<br />
the history, philosophy and tech<br />
nique of the Co-operative Move<br />
ment are being given in the follow<br />
ing colleges:<br />
Denver Labor College.<br />
Minneapolis Workers' College.<br />
Seattle Workers' College.<br />
Passaic Trade Union College.<br />
Workers' University of New<br />
York.<br />
Washington (D. C.) Trade Union<br />
College.<br />
San Francisco Labor College.<br />
In the near future, more colleges<br />
will undertake such courses. A syl<br />
labus has been prepared by The<br />
League to aid teachers in carrying<br />
on a Co-operative course. This out<br />
line of Co-operation, together with<br />
a bibliography prepared by The<br />
League, is to be put at the disposal<br />
of all the labor colleges in the coun<br />
try, through the Workers' Educa<br />
tion Bureau. It can also be ob<br />
tained! from The Co-operative<br />
League for study groups of any<br />
kind.<br />
CENSUS RETURNS ON <strong>CO</strong><br />
<strong>OPERATION</strong><br />
The U. S. Bureau of the Census has<br />
issued figures on the extent of co-operative<br />
marketing and purchasing by farmers. In<br />
the 1920 census, figures were taken of the<br />
business done by farmers' co-operatives dur<br />
ing the preceding year. These returns show<br />
that 329,449 farms secured their farm sup<br />
plies, such as fertilizer, feed, twine, coal,<br />
and even household necessities through<br />
co-operative purchasing associations. Co<br />
operative purchases by farmers amounted<br />
to $84,615,669 in 1919. These purchases<br />
were made by 5.1 per cent of the farmers<br />
of this country.<br />
The figures for co-operative marketing<br />
during 1919 are even more impressive.<br />
There were 511,383 farms selling their<br />
produce through co-operative marketing<br />
associations, or 7.9 per cent of all the farms<br />
in this country. They sold $721,983,639<br />
worth of farm produce in 1919, or an aver<br />
age of $1,412 for each farm.<br />
The Co-operative Consumers' Movement<br />
among the farmers is strongest in Kansas,<br />
Nebraska, Iowa, Minnesota and California.<br />
ANOTHER BOSTON BANK<br />
A new credit union has just opened<br />
for business in Boston, Mass. Com<br />
pare these features of the credit<br />
union with the business methods of<br />
your bank:<br />
One may become a member, by pay<br />
ing $5 for a share. This need not all<br />
be paid at once. Shares can be paid<br />
for, by weekly instalments of as low<br />
as 20 cents.<br />
Deposits as low as 25 cents are ac<br />
cepted.<br />
Loans are made to members only,<br />
at a reasonable interest rate. Repay<br />
ment may be made within one year,<br />
in weekly or monthly instalments.<br />
All officers and members of com<br />
mittees of the credit union serve<br />
without pay. They are sworn to the<br />
faithful performance of their duties.<br />
The credit union is under supervision<br />
of the State Banking Commissioner.<br />
The treasurer is under bond. Finan<br />
cial statements are rendered every<br />
month.<br />
This credit union is called the<br />
Union Workers' Credit Union, and is<br />
located at Room 634, Little Building,<br />
Boston. For the convenience of the<br />
members, the office is open Tuesday<br />
evenings from 7.30 to 10 P. M.<br />
CUTTING EXPENSES<br />
All the way from New Zealand<br />
comes a report of the efficient serv<br />
ice of the manager of a co-operative<br />
society in that far-off country.<br />
When this enterprising manager<br />
took charge of his store in Decem<br />
ber, 1918, the percentage of ex<br />
penses on turnover amounted to<br />
13.3 per cent. For the period end<br />
ing June, 1919, the expenses were<br />
11.18 per cent; six months later,<br />
December, 1919,11.08 per cent; for<br />
the year ending June, 1920, down<br />
to 10.2 per cent. By the end of the<br />
last half year expenses had been cut<br />
to 9.5 per cent. This shows two
16<br />
years' overhead cut down 4 per<br />
cent, while costs of labor were going<br />
up. And the percentages of surplus-<br />
savings went up, while the ex<br />
penses were going down.<br />
NEW RUSSIAN SOVIET HOUSING<br />
POLICY<br />
A significant bit of news came in<br />
a recent dispatch from Kussia.<br />
Leon Kamenev, Chairman of the<br />
Soviet Department of Moscow, is<br />
quoted as follows:<br />
"The new municipal policy brings with<br />
it a radical change in the housing question.<br />
The section for housing only has the right<br />
of administration of the so-called fund of<br />
available houses. This fund consists of<br />
10 per cent of all housing accommodation<br />
which is handed over to the newly-formed<br />
housing co-operatives. These co-operatives<br />
undertake the maintenance and repair of<br />
the houses. There are today about 200<br />
such co-operatives, which also undertake<br />
the restoration of destroyed houses or<br />
houses which require thorough repair and<br />
renovation."<br />
BOY<strong>CO</strong>TT <strong>CO</strong>-OPERATIVES<br />
The other day the "Journal of<br />
Patronal Associations" stated that,<br />
although the manufacturers of cer<br />
tain branches (especially textiles)<br />
had lowered their prices 50 to 60<br />
per cent, the retail merchants had<br />
not lowered theirs more than 20<br />
per cent. Also the Secretary of the<br />
Swiss Industrial Associations for<br />
mally accused the retail merchants<br />
of having an understanding amongst<br />
themselves to resist the lowering of<br />
prices demanded by the manufac<br />
turers.<br />
We have, on our part, on many<br />
occasions, cited cases where the Co-<br />
operators were threatened with the<br />
blacklist by these associations of<br />
retail merchants, if they continued<br />
to cut prices, which proves the truth<br />
of the allegations of the "Schweiz.<br />
Arbeitgeberzeitung." In further<br />
proof of this the Co-operative Union<br />
of LaChaux-de-Fonds has just added<br />
a bit of news. Here is a letter which<br />
the society has received from the<br />
stationery trust:<br />
Our members who deal in stationery in<br />
La Chaux-de-Fonds complain that the Co<br />
<strong>CO</strong>-OPEKATION<br />
operative Union of your city sells mer<br />
chandise below the prices (of others) and<br />
carries on unfair competition.<br />
We are therefore asking if you will con<br />
tinue to refuse to sell at the same prices<br />
charged by other stationers of your city.<br />
If we cannot agree on this we shall be<br />
obliged to boycott you in order to help our<br />
members. We shall regret to be forced<br />
by you to take this measure, but present<br />
conditions cannot continue.<br />
<strong>CO</strong>-OPERATIVES CUT THE PRICE<br />
OF BREAD<br />
The bakers of Glasgow, Scotland, made<br />
an announcement a few weeks ago that<br />
was welcomed by all the workers of that<br />
city. The price of the standard four-pound<br />
loaf was to be cut to a shilling. This ac<br />
tion on the part of the bakers did not<br />
spring solely from the generous feelings of<br />
the bread profiteers. It was forced upon<br />
them by the United Co-operative Bakery,<br />
which announced that it would reduce the<br />
price of its bread to one shilling.<br />
Previous to this the price of Canadian<br />
flour had been cut, so that the bakers could<br />
afford to reduce materially the price of<br />
bread. But they continued to retain for<br />
themselves the benefit of the reduction in<br />
the price of flour. Then the co-operative<br />
bakery got busy and set the pace. It stated<br />
publicly that it saw no reason why bread<br />
should not be sold at a reduction of two<br />
cents a loaf, and announced that it would<br />
cut the price of its bread. The private<br />
bakers grudgingly had to follow suit.<br />
<strong>CO</strong>-OPERATIVES LAUNCH FISH<br />
ING FLOTILLA<br />
In the launching of two stalwart ships,<br />
the other day, Edouard Anseele, the vet<br />
eran leader of Co-operation in Belgium,<br />
realized another of his dreams. Since 1886<br />
he had been raising his voice against the<br />
exploitation of the fishermen. Now the<br />
co-operatives in Belgium have taken a step<br />
which is destined to wipe out the unjust<br />
system by which the fishermen were vic<br />
timized.<br />
Two steam trawlers were purchased from<br />
the English Admiralty by the Belgian Co-<br />
operators for $35,000 each. They had been<br />
at sea only a year, and are substantial. The<br />
ships bear the names of two prominent Co-<br />
operators: Edmond van Beveren, the foun<br />
der of Co-operation in Flanders, and Theo-<br />
phile Massart, the father of a great co<br />
operative bakery.<br />
The inauguration of this new enterprise<br />
was celebrated for several days at Ostend,<br />
which is to be the harbor of the North Sea<br />
co-operative fishing steamers. The capital<br />
of this venture was subscribed by Vooruit,<br />
the great consumers' society of Ghent, the<br />
socialist fishermen of Ostend, trade union<br />
organizations, and various co-operative so<br />
cieties.<br />
TUCUMCARI BUSY<br />
"Have been very busy with our<br />
Co-operative store here," writes N.<br />
S. Bell, of Tucumcari, New Mexico.<br />
"We got into financial difficulties<br />
and had to change managers. We<br />
have with us for manager now Mr.<br />
A. W. Warinner, of Missouri. He is<br />
pulling us out of the hole in good<br />
shape. We sold about $3,000 worth<br />
of new stock and are going uphill<br />
again. A great number of members<br />
are paying their grocery bills in ad<br />
vance and have taken new interest<br />
in the movement.<br />
"There is nothing can stop the<br />
bunch we have here now. They<br />
have got the co-op, bug bad. Mr.<br />
Warinner is a real live wire. He has<br />
done more to put the idea over since<br />
he has been here than we could in a<br />
whole year. Now that the crisis<br />
has passed I will have the time and<br />
will gladly get out and see what I<br />
can do towards getting subscriptions<br />
for the magazine Co-OPEEATlON."<br />
(We happen to know that Mr. Bell, who is<br />
a locomotiye engineer, loaned the society<br />
$1,000 to tide it over.)<br />
<strong>CO</strong>MING THEIR WAY<br />
As President of the Utica Co-operative<br />
Society I have just received an invitation<br />
to address the New Century Club, a<br />
woman's organization of considerable in<br />
fluence in this city. I consider this a fine<br />
opportunity to plead for their co-operation.<br />
You no doubt agree with me that what<br />
ever we can do to interest the women is of<br />
inestimable value.<br />
I may mention that we have secured the<br />
support of the local branch of the Con<br />
sumers' League, who last week became a<br />
member of the Utica Co-operative Society<br />
as such, and one of its most influential mem<br />
bers joined us individually, with an initial<br />
subscription of $250 in shares.<br />
The Utica Trades' Assembly whose sup<br />
port we have solicited and who had a<br />
committee meet with us to investigate our<br />
methods has likewise reported that we de<br />
serve the trades union support.<br />
OTTO L. ENDEES, President,<br />
The Utica Co-operative Society,<br />
Utica, N. Y.<br />
<strong>CO</strong>-OPEKATION 17<br />
<strong>CO</strong>RRESPONDENCE<br />
<strong>CO</strong>NAWAY ALIVE<br />
No doubt but that you have given up<br />
hearing from us, thinking, perhaps, that<br />
we had gone the way of the has-beens or<br />
those who have tried and failed. But we<br />
have cut out the words "fail," "can't,"<br />
'if," "don't have time," "afraid," "too<br />
busy," and such. All we know is "go."<br />
Therefore, you will please find enclosed a<br />
check for membership in The League and<br />
for subscription to <strong>CO</strong>-OPEKATION; also<br />
enough to cover cost of printed matter you<br />
kindly mailed us. Please send us another<br />
supply as soon as you get this letter, as<br />
we want to keep the co-operative idea be<br />
fore the people and let them understand<br />
that we are alive.<br />
THOMAS A. FEEGUSON,<br />
Conaway Co-operative League, Toppenish,<br />
Washington.<br />
LITTLE ROCK LAUNDRY<br />
"We are still alive and in the field,"<br />
writes L. W. Lowry, manager of the Cit<br />
izens' Co-operative Laundry Co., in Little<br />
Bock Ark., "showing a small gain each week<br />
in spite of hard times and tough competi<br />
tion. The Co-operative flag is nailed to<br />
the mast, and the thought of failure never<br />
enters our heads. Yet—<br />
"We have our careless members and our<br />
knockers! 'Tis easy to dispose of the<br />
knocker from the outside, we know what<br />
to do with this fellow if he won't listen to<br />
reason—but the guy that should be a<br />
booster, he is a thorn in the flesh. He can<br />
not be convinced, he will not listen to<br />
reason, he won't even listen. At his union<br />
meetings he will repeat some false story,<br />
magnify it, and when told that it is not<br />
true, he leaves and spreads it broadcast.<br />
Against that kind of poison, the writer<br />
does not know what to use-<br />
"In spite of this, perhaps because of this,<br />
we are getting ahead. While other laun<br />
dries have laid off employees and cut wages,<br />
we have kept all of ours busy, and made a<br />
slight gain each week. A <strong>CO</strong>-OPEEATIVE<br />
LAUNDEY CAN BE MADE A SUCCESS<br />
—WE HAVE ONE HEEE."<br />
EDUCATION AT<br />
MAHONINGTOWN<br />
We worked for eighteen months to get<br />
started—had about $3,300 collected—but we<br />
were afraid of the times, lots of articles<br />
coming down. We thought we had better<br />
wait until times were more settled. Every<br />
member received his money back and aU<br />
but two are ready to try it again, just as<br />
soon as times are more satisfactory. We<br />
think in about eight months to a year con<br />
ditions will be more settled. We appreciate<br />
the fact that The Co-operative League of<br />
America has helped us in many ways to
18 <strong>CO</strong>-<strong>OPERATION</strong> <strong>CO</strong>-<strong>OPERATION</strong> 19<br />
get started in the right way. We are not<br />
going to give up, but still work for the good<br />
we know there is in it for us. Our board<br />
of directors is acting as an educational<br />
committee.<br />
Mahoningtown, Pa. C. M. HILL,<br />
HENRYETTA HAS GOOD POLICE<br />
The Henryetta District Co-operative So<br />
ciety of Henryetta, Okla., was organized<br />
during November, 1919. Twelve of us<br />
met and put up $10 each to defray expense<br />
of legal advice, charter fee, and incorpora<br />
tion expense. We were accorded the priv<br />
ilege of meeting in the police chief's office<br />
during our organization period. We se<br />
cured enough stockholders and money to<br />
buy out an old stock of goods, though we<br />
were sorry later for buying old goods. We<br />
launched into' business on February 1,<br />
1920. We had a hard struggle our first<br />
year on account of incompetent managers.<br />
The second year we have done fairly<br />
well under another manager. We have<br />
bought and paid for a business lot, and<br />
hope to build in the near future. We have<br />
built a corrugated iron garage on our lot<br />
to house our two auto trucks, which saves<br />
us $30 per month rent. We are paying on<br />
a contract for a loan of $15,000 in a loan<br />
company, which we expect to use in erect<br />
ing our own store building.<br />
At present we have 224 members. We<br />
do about $10,000 business a month. We<br />
handle groceries, dry goods, shoes, and a<br />
small line of hardware. Goods are sold at<br />
current retail prices. We are at present in<br />
a very trying time, but we know we will<br />
surmount all obstacles. GEORGE McKAY,<br />
Treasurer Henryetta District Co-operative<br />
Society, Henryetta, Okla.<br />
(During the last quarter this society<br />
paid a savings-return of 6 per cent to all<br />
its members on their purchases).<br />
HANNIBAL EDUCATES<br />
We think the Associated Magazine to be<br />
a great scheme to educate members and<br />
can be used very effectively by mailing a<br />
few copies to active trade unionists and<br />
others inclined to be open on this subject.<br />
Experience teaches us that nothing is so<br />
essential to the success of a co-operative<br />
store as is education. Send us 500 copies<br />
at your earliest convenience.<br />
A. S. BREWER,<br />
Manager Hannibal Co-operative Society.<br />
CALENDARS FOR <strong>1922</strong><br />
A very attractive calendar has been<br />
issued by the Co-operative Central Ex<br />
change of Superior, Wisconsin, for the<br />
year <strong>1922</strong>. The calendar has a striking<br />
reproduction of a four-colored oil painting<br />
made especially for this purpose. The pic<br />
ture teaches a Co-operative lesson, and<br />
makes the calendar suitable for advertising<br />
and educational purposes.<br />
Last year the Co-operative Central Ex<br />
change supplied 25,000 calendars to local<br />
societies. It intends to do even better<br />
this time. A substantial reduction has been<br />
made in the price of the calendars, which<br />
sell for 14 cents each in lots of 1000 or<br />
more, 15 cents each in lots of 500 and less<br />
than 1000, and 16 cents each in lots less<br />
than 500. Many societies are ordering cal<br />
endars for their members and customers.<br />
BOOK REVIEW<br />
Co-operative Anthology. Theoretical and<br />
Practical Guide to Consumers, Producers<br />
and Agricultural Credit Co-operatives, by<br />
V. Th. Totomiantz, former professor of the<br />
University of Moscow. Published 1921 by<br />
J. Povolozky & Co., 13 Rue Bonaparte,<br />
Paris, France.<br />
Professor Totomiantz has rendered a val<br />
uable service in compiling this anthology.<br />
It is a collection of the opinions, philoso<br />
phies and principles of various prominent<br />
European Co-operators. Most of the ex<br />
tracts are brief and give a fitting view of<br />
the thoughts of the authors. We find col<br />
lected here quotations from the pioneer<br />
advocates of the Co-operative Movement,<br />
such as Holyoake, Owen, Maxwell and H.<br />
Wolff, of England; Schultze-Delitzch, F.<br />
Studinger, H. Mueller and H. Kauffman,<br />
of Germany; Charles Gide, Fourier, Pois-<br />
son and Daudet-Bancel, of France; L. Luz-<br />
zatti, Mazzini and L. Barbieri, of Italy; and<br />
H. Pronier, of Switzerland, etc.<br />
We in the United States will regret not<br />
only that this valuable anthology is pub<br />
lished only in the French language, but<br />
that its author has not included in it ex<br />
tracts from the American writers on the<br />
Co-operative Move_ment. Nevertheless, we<br />
may look forward in the future revised edi<br />
tion for the inclusion of extracts from<br />
those who are helping to guide the<br />
Co-operative Movement in this country, as<br />
well as for an English translation of the<br />
stimulating hopes and ideals of our Euro<br />
pean fellow Co-operators.<br />
<strong>CO</strong>-<strong>OPERATION</strong>, VOL. VII, 1921<br />
Bound volumes of this magazine, with<br />
index, for 1921, may now be had by writing<br />
to The League.<br />
Our readers may be interested to know<br />
that the volumes of the recent past years<br />
are nearly exhausted. This publication is<br />
an historic record which is now preserved<br />
by libraries and by individuals as the most<br />
authentic record of co-operative progress<br />
in the United States.<br />
46.<br />
11.<br />
12.<br />
34.<br />
43.<br />
45.<br />
PUBLICATIONS<br />
OF THE<br />
Co-operative League of America<br />
HISTORICAL Per Copy Per 10Q<br />
Story of Co-operation .................................................$ .10<br />
British Co-operative Movement ........................................ .10<br />
A Baker and What He Baked (Belgian Movement)...................... .05<br />
Co-operative Consumers' Movement in the United States............... .05<br />
16.00<br />
6.00<br />
4.00<br />
TECHNICAL<br />
How to Start and Run a Rochdale Co-operative Society.................. .10 4.00<br />
System of Store Records and Accounts................................ .50<br />
A Model Constitution and By-Laws for a Co-operative Society........... .05 2.60<br />
Co-operative Education. Duties of Educational Committee Defined..... .10<br />
How to Start a Co-operative Wholesale................................ .10<br />
Why Co-operative Stores Fail .............. .......................... .02 1.00<br />
MISCELLANEOUS<br />
Producers' Co-operative Industries ................................... .10<br />
Control of Industry by the People Through the Co-operative Movement... .10<br />
Credit Union and Co-operative Store.................................. .05 1.76<br />
Co-operative Movement (Yiddish) .................................... .02 1.25<br />
Co-operative Housing ................................................. .10<br />
Harmonizing Co-operative Producers and Consumers.................... .03<br />
ONE-PAGE LEAFLETS<br />
(One cent each; 60 cents per 100; $2.50 per 600; $4 per 1,000)<br />
(1) Principles and Aims of the Co-operative League of America; (17) Do You Know Why You<br />
Should Be a Co-operator; (20) Why Loyalty Is Necessary; (21) Cost and Crime of<br />
Credit; (22) A Real Co-operator; (26) Resolutions Adopted by A. F. of L.; (26) Factory<br />
Workers, Co-operate!; (28) Do You Know About Co-operation in Europe?; (40) Have<br />
You a Committee on Education and Recreation?; (44) What Is the Co-operative<br />
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MONTHLY PUBLICATIONS<br />
<strong>CO</strong>-<strong>OPERATION</strong>—(In bundle lots, $7.60 per hundred). Subscription, per year......... .$1.00<br />
HOME <strong>CO</strong>-OPERATOR, 4 pages ................................................ $1 per 100<br />
INTERNATIONAL <strong>CO</strong>-OPERATIVE BULLETIN (Pub. by The I. C. A.).......per year, $1.50<br />
BOOKS<br />
The following books are recommended as containing the best discussions of the modern<br />
Co-operative Movement. They made be ordered through The League:<br />
Bubnoff, J. B.: The Co-operative Movement in Russia, 1917.......................... .$1.26<br />
Faber, Harald: Co-operation in Danish Agriculture, 1918.............................. 2.75<br />
Flanagan, J. A.: Wholesale Co-operation in Scotland, 1920............................ 2.00<br />
Gebhard, Hannes: Co-operation in Finland, 1916..................................... 2.00<br />
Gide, C.: Consumers' Co-operative Societies, 1921...................................... 2.50<br />
Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, $2.00; paper<br />
bound ........................................................................... .60<br />
History of Co-operation in the United States. Vol VI, John Hopkins University Studies,<br />
1888 ...............................................................................4.00<br />
Holyoake, George Jacob: The History of Co-operation, 1908............................ 2.00<br />
Holyoake, George Jacob: The History of the Rochdale Pioneers........................ 2.00<br />
Howe, Fred C.: Denmark, a Co-operative Commonwealth, 1921.......................... 2.60<br />
Maxwell, Wm.: History of Co-operation in Scotland, 1910.............................. 2.00<br />
Nicholson, Isa: Our Story ............................................................ .26<br />
Powell, G. Harold: Co-operation in Agriculture. Macmillan ........................... 1.60<br />
Redfern, Percy: The Story of the C. W. S............................................. 2.00<br />
Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918....................... 2.60<br />
Smith-Gordon: Co-operation in Many Lands, 1920...................................... 2.60<br />
Sonnichsen, Albert: Consumers' Co-operation, 1919. Cloth bound, $1.76; paper bound... .76<br />
Stolinsky, A.: The Co-operative Movement. In Yiddish................................ 1.00<br />
Webb, B. and S.: The Consumers' Co-operative Movement, 1921....................... 2.00<br />
Webb, Catherine: Industrial Co-operation, 1917 ...................................... 1.60<br />
Woolf, Leonard: Co-operation and the Future of Industry............................. 2.00<br />
Woolf, L.: Socialism and Co-operation................................................ 2.00<br />
"The Co-operative Consumer" and "Co-operation," Vols. I (1914-16), II (1916), III (1917),<br />
IV (1918), V (1919), VI (1920), VII (1921)........................................ 1.25<br />
Transactions of Second American Co-operative Convention, 1920....................... 1.00<br />
(Ten cents postage should be added for books which cost more than $2.00, and five cents<br />
for the smaller books.)
THE <strong>CO</strong>-OPERATIVE LEAGUE OF AMERICA<br />
(Member of The International Co-operative Allinace)<br />
Executive Office: 2 West 13th Street, New York<br />
An educational organization for teaching the history, principles, methods and aims of the<br />
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Join the League and thus help promote the education work of the Co-opera<br />
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Co-operation in Scotland<br />
In no part of the world is Co-operaiion further<br />
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tive affairs, and problems of the<br />
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Post free 4 sh. 6d. a year.<br />
The Trade and Technical Orean of British<br />
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CASH REGISTER FOR SALE<br />
The Consumers' Co-operative Company,<br />
of Dayton, Ohio, has a cash register which<br />
it wishes to sell. The register was bought<br />
for $750 only one year ago, and is now for<br />
sale for $500, which we are assured is a<br />
bargain price. The register was especially<br />
built for use by co-operative societies. It<br />
prints a record of each transaction in dupli<br />
cate, so that the store and the customers<br />
may figure up the amount of purchases<br />
upon which dividends are to be paid. Com<br />
munications should be addressed to M. E.<br />
Dooley, Treasurer, 21 South Terry Street.<br />
Dayton, Ohio.<br />
A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in vol<br />
untary organization, produce and distribute for their own use the things they need<br />
Published monthly by the Co-operative League of America, 2 West 13th Street, New York<br />
City. J. P. Warbasse, Editor. Price, $1.00 a year. Entered as second class matter, December<br />
19, 1917, at the Post office at New York, N. Y., under the Act of March 3, 1879.<br />
Vol. <strong>VIII</strong>, No. 2 FEBRUARY, <strong>1922</strong> 10 Cents<br />
THE FARMERS<br />
The time was when the United<br />
States was an agricultural country.<br />
Most of the farmers worked on their<br />
own farms. The ambition of the fa<br />
ther was to leave a farm to each of<br />
his children. The culture, the sta<br />
bility and the wealth of the country<br />
were among the farmers. Up to sev<br />
enty-five and fifty years ago, the<br />
United States was breeding a race of<br />
sturdy farming people. The farmers<br />
lived well, did their own thinking and<br />
fostered a fine spirit of friendliness<br />
and neighborly sympathy. Each fam<br />
ily produced in those days most of the<br />
things they consumed. Their indus<br />
try had a large social motive. The<br />
agricultural period held the best days<br />
in the history of the United States<br />
from the standpoint of the making of<br />
men.<br />
Then came the steady encroach<br />
ments of trade, manufacturing and<br />
intensive industry for profits. A new<br />
race of people became dominant—a<br />
race of traders, speculators, and pro<br />
ducers for profit. Gradually it came<br />
about that money could be made<br />
easier in exchanging and gambling in<br />
the products of the land than in actu<br />
ally producing things. Laws were<br />
made to promote and protect gam<br />
bling-. (It was called "trade" or<br />
"business.") The products of the<br />
farms presently became objects of in<br />
VITAL ISSUES<br />
terest and importance because of<br />
their gambling possibilities. The<br />
most influential citizens ceased to be<br />
of the farmers and became the cham<br />
bers of commerce, produce exchanges,<br />
stock exchanges, merchants associa<br />
tions, and boards of trade. Buying<br />
at the lowest price and selling at the<br />
highest price became the great na<br />
tional occupation.<br />
Steadily now, for the past thirty<br />
years the number of farmers who<br />
work on their own farm has dimin<br />
ished. The number of mortgaged<br />
farms has increased. The number of<br />
farms owned by absentee landlords<br />
and worked by tenant farmers has<br />
multiplied. The average farm worker<br />
has made a bare living from his in<br />
dustry. Out of sheer economic pres<br />
sure, the boys and girls have left the<br />
farms and gone to the cities to take<br />
jobs in factories and to engage in the<br />
game of selling their labor at the<br />
highest price and buying at the low<br />
est price.<br />
The year 1921 saw a great change<br />
in the United States. For the first<br />
time in its history, the town popula<br />
tion became greater than the coun<br />
try population. The majority of the<br />
people are no longer occupied in agri<br />
culture. The United States has ceased<br />
to be an agricultural country.<br />
How fares it with the farmer now?<br />
In the Fall of 1921, a hearing be-
20 <strong>CO</strong>-<strong>OPERATION</strong><br />
fore the Agricultural Commission in<br />
Washington brought out the fact that<br />
the farmer in this country receives<br />
but thirty cents out of every dollar<br />
that the consumers pay for farm pro<br />
ducts. In Denmark, the farmer re<br />
ceives ninety cents of the consumers'<br />
dollar.<br />
The greatest economic power in the<br />
United States today is represented in<br />
those forces that take this seventy<br />
cents tribute out of every consumers'<br />
dollar and hand the farmer thirty<br />
cents. This force is organized; it<br />
controls the press and the schools,<br />
and its representatives and agents<br />
constitute the great majority in every<br />
state legislature, in congress, in the<br />
cabinet and in the courts. This is a<br />
serious problem; but it is not only<br />
a farmers problem; it is the problem<br />
of every one of us. No civilization<br />
can endure that subjugates the pro<br />
ducers of necessary things to the will<br />
and Gemination of traders in those<br />
things.<br />
To meet this situation, there is one<br />
first step. The farmer must organ<br />
ize. Industrial labor lifted itself out<br />
of a state worse than slavery by or<br />
ganizing. The farmer is headed, for<br />
peonage; and nothing but organiza<br />
tion can save him. His first duty is<br />
to organize as a producer—as a<br />
worker—to get adequate pay for his<br />
labor. That means adequate prices<br />
for what he produces. The consum<br />
ers who are not farmers can not<br />
justly raise a voice against this. The<br />
farmer must organize for the same<br />
reason that the industrial worker<br />
must organize. In the present eco<br />
nomic system, without organization,<br />
slavery is their destiny. The man<br />
who is opposed to the trade-union<br />
principle for every worker, indus<br />
trial or agricultural, is an enemy of<br />
civilization to just that degree.<br />
But the farmer, as well as the in<br />
dustrial worker, cannot solve his<br />
problem by merely organizing and se<br />
curing better reward for his labor.<br />
When he comes to spend the wages<br />
he has gotten for his toil, he is still<br />
at the mercy of the same forces that<br />
control his selling power. Inasmuch<br />
as he spends as much as he receives,<br />
he is a consumer as much as he is a<br />
producer. It is for this reason that<br />
he must organize his spending power<br />
as well as his selling power. These<br />
two forms of organization are neces<br />
sary and should go hand-in-hand.<br />
The organizations that are doing<br />
the most for the farmers in the<br />
United States are those that are giv<br />
ing attention to both ends of the<br />
farmers' problem. Several are sin<br />
cerely interested in having the farm<br />
ers organize as consumers. Their<br />
stores and purchasing organizations<br />
are beacons of hope. They have es<br />
tablished some of the best consumers'<br />
societies in the Middle West. Their<br />
great need is the intensive promotion<br />
of education so that the farmers shall<br />
understand the need and the correct<br />
methods of organization.<br />
The Co-operative League desires to<br />
render every possible assistance in<br />
this direction. There is every reason<br />
why the organization of the people<br />
as producers and as consumers should<br />
go forward together. The hope of<br />
the United States rests upon the pro<br />
gress of the Co-operative ,Movement<br />
and not upon the fictitious wealth, the<br />
product of exploitation, which high<br />
finance holds up as the test of our<br />
greatness.<br />
A BUYERS' STRIKE<br />
The Attorney General of the United<br />
States has suggested, as a remedy for<br />
profiteering and high prices, that the<br />
buyers should boycott all shops where<br />
they think prices are unreasonably<br />
high.<br />
There is one thing that strikes the<br />
thoughtful citizen in these trying<br />
times: that is the utter poverty of<br />
politicians in constructive ideas. The<br />
whole country is beset with profiteer<br />
ing, unemployment, suffering and<br />
crime rampant. Boards of aldermen<br />
and city councils fail utterly to touch<br />
the problem. One American city has<br />
been advertised with screaming head<br />
lines as having a solution for its crime<br />
problem; and what do we find is its<br />
solution? It is building two new<br />
criminal court buildings and has in<br />
creased its criminal prosecuting staff!<br />
If one would be especially im<br />
pressed with the utter futility of our<br />
political system, let him go to Wash<br />
ington and see the whole outfit of<br />
politicians, busy chieflly in avoiding<br />
doing something fundamentally use<br />
ful.<br />
Dear reader, did you ever walk the<br />
fields and turn over a big flat stone<br />
and see the commotion among the<br />
bugs underneath? Such a scurrying<br />
and rushing hither and hither! Do<br />
you realize what all the excitement<br />
and fuss is about? The bugs are<br />
afraid of the light. They live and<br />
work in darkness. That is Washing<br />
ton. The big flat stone is the present<br />
benighted economic profit-system. A<br />
new idea, born of suffering and dis<br />
content, comes along and tips it up a<br />
bit. A little light creeps in around<br />
the edges, and there is danger that<br />
the thing may upset. The bugs scur<br />
ry as far from the light as possible,<br />
loudly proclaiming to each other the<br />
virtues of the stone and asserting that<br />
the light cannot get in very far and<br />
disturb things.<br />
The solution offered by the Govern<br />
ment will not upset the stone—never<br />
fear!<br />
It proposes a nation-wide buyers'<br />
strike! If the workers proposed a<br />
nation-wide strike of workers because<br />
wages were too low, hell would be to<br />
pay. But high prices is exactly the<br />
same thing as low wages. The pre<br />
cious Attorney General knows that<br />
the buyers are not organized and<br />
there is no such a thing as an unor<br />
ganized strike. A strike is a nega<br />
tive force any way. The Attorney<br />
General advocates a consumers' strike<br />
not only because of dearth of ideas,<br />
but because of its impracticability.<br />
The government's job is to suggest<br />
something that will not worry the<br />
supporters of the present system or<br />
upset the structure under which they<br />
work.<br />
Suppose we had a government of<br />
constructive statesmen. I admit the<br />
impracticability of the supposition.<br />
<strong>CO</strong>-<strong>OPERATION</strong> 21<br />
But suppose we had. And suppose<br />
the government taught the people<br />
about organizing the consumers, not<br />
to strike, but for constructive pur<br />
poses. Suppose it used its machinery<br />
of education, propaganda and pub<br />
licity, not for negative purposes, but<br />
to teach them how to organize co<br />
operatively as consumers to supply<br />
themselves with the things they<br />
want. Suppose it fostered laws for<br />
the protection and the promotion of<br />
such organizations of the people. Sup<br />
pose the Government should do what<br />
The Co-operative Leage is attempting<br />
to do. The United States would be<br />
converted into a Utopia. The possi<br />
bilities of bringing happines, self-re<br />
liance and justice to the people are so<br />
great as to be beyond human calcula<br />
tion. Privilege and poverty would<br />
disappear along with the train of<br />
crime and sin that follows them.<br />
That the Government will do such<br />
a thing is unthinkable! If the people<br />
want privilege and poverty abolished<br />
they will have to do it for themselves.<br />
Not a buyers' strike, but a buyers' co<br />
operative organization for construc<br />
tive purposes is what this country of<br />
ours needs.<br />
A SOCIALIST ERROR<br />
Socialists in the United States are<br />
teaching that the people need to vote<br />
for Socialism and secure a majority<br />
at election; and, lo! and behold! in the<br />
twinkling of an eye, all will be<br />
changed!<br />
The New York Call, January 5,<br />
<strong>1922</strong>, in an editorial said:<br />
"H. G. Wells is right. It is not war that<br />
is the most terrible thing, horrible as it is.<br />
It is the stupidity of the people who, having<br />
it within their power to change the present<br />
hellish conditions between the rising and<br />
setting of the sun, refuse to do it."<br />
The editor who wrote this is the<br />
best informed on economics of any<br />
editor of any New York daily news<br />
paper. He did not mean just what<br />
the editorial reads. He meant that<br />
the people have the power, in a day,<br />
to take the first step toward a change.<br />
But many people take the statement
22 <strong>CO</strong>-<strong>OPERATION</strong> <strong>CO</strong>-<strong>OPERATION</strong> 23<br />
literally. The teaching among so<br />
cialists is very prevalent that when<br />
they have a majority at the polls the<br />
change is as good as accomplished.<br />
Soap box orators are fond of giving<br />
this impression. As a matter of fact<br />
it is far from the truth. If in any<br />
industrial country, the socialists<br />
should win a victory at the polls and<br />
should attempt to change the present<br />
hellish conditions between the rising<br />
and setting sun, by a socialization of<br />
industry, that country would be<br />
thrown into a state of hellishness that<br />
would be worse than the present con<br />
ditions. If the captured government<br />
should proceed to take over the indus<br />
tries, chaos would be turned loose.<br />
There would be unemployment, sup<br />
pression of civil liberties, suppression<br />
of freedom of speech, force without<br />
stint, wholesale arrests, bloodshed,<br />
poverty and crime—all multiplied be<br />
yond what they are today. Before<br />
the upset had lasted long the majority<br />
of people would be praying for the<br />
good old times back again, some arch<br />
reactionary would be elected presi<br />
dent, the "radicals" would be stood in<br />
rows in front of a wall, and mowed<br />
down with machine guns, and the<br />
same old game would be on again.<br />
If there is any particular class of<br />
people in the United States today who<br />
are not radical it is the people who<br />
call themselves "real radicals"—the<br />
so-called extreme left wingers. Radi<br />
cals are at the root; these left wingers<br />
are up in the branches—and a good<br />
thunderstorm would shake them out<br />
and bring them tumbling to the<br />
ground.<br />
What the people want is bread and<br />
potatoes, and plenty of them. Any<br />
reorganization of society—that does<br />
not at once give them at least as much<br />
as they have been having—poor as it<br />
is—will not last very long. The prom<br />
ise that "we are working put a better<br />
state of society for our children" does<br />
not satisfy hungry people. No change<br />
from the present system will succeed<br />
unless it is an economic change. Poli<br />
tics can change little. The politics,<br />
the government, is but the echo of<br />
the voice of the owners of the prop<br />
erty. Sudden revolutions, both poli<br />
tical and economic, fail because the<br />
present owners of the property are<br />
opposed to sudden change. And they<br />
are the forces which hold the surplus<br />
wealth, the surplus food, the guns and<br />
the powers of coersion. Finland<br />
came up against this thing. It elected<br />
103 socialists in a parliament of 200.<br />
Then the trouble began. It is not a<br />
question of what is right or what is<br />
wrong; it is a question of facts, a<br />
question of the action of forces which<br />
cannot be changed overnight.<br />
I do not say politics is futile. But<br />
I do say it is a secondary field; and<br />
any movement that hopes to change<br />
the present "hellish system" by politi<br />
cal action alone is futile. It is an idle<br />
dream.<br />
The only way to make the world a<br />
better place to live in is to go to work<br />
day by day and make it a better place<br />
to live in. That means work; and<br />
there are a lot of people who want it<br />
done without work. They think vot<br />
ing is easier.<br />
If production and distribution for<br />
profit is a source of evil, then the<br />
remedy is to distribute and produce<br />
things for use. If people do not want<br />
to be dependent upon profit-making<br />
capitalists for the necessities of life,<br />
then the thing to do is to learn how<br />
to supply themselves with the things<br />
they want, independently of the cap<br />
italists. There is no easy way to do<br />
this. It can not be done by electing<br />
some other fellow—to go to a capital<br />
city—to instruct the thing called the<br />
government—to do it. The people<br />
must do it themselves. The capital<br />
ists are now supplying us with most<br />
of the things we use. They have<br />
learned how to do it. But if we want<br />
a change we have got to train our<br />
selves to do things ourselves. If we<br />
are not willing to remake the world<br />
ourselves with our own hands, per<br />
sistently and constructively, then<br />
other non-creative and destructive<br />
forces will remake it; and for the<br />
worse.<br />
J. P. W.<br />
EUROPEAN IMPRESSIONS<br />
There is a story told of a wealthy<br />
traveller whose life was saved by<br />
some Swiss peasants in the moun<br />
tains and who, out of gratitude, sent<br />
a sum of money to the Swiss Govern<br />
ment to be given to the poor. In due<br />
time he received a letter of thanks<br />
from the "little republic of the moun<br />
tains" ; but the letter returned to him<br />
his money and informed him that the<br />
government could not use it as there<br />
were no poor in Switzerland. I like<br />
this story because it shows the self-<br />
respect and independence of the peo<br />
ple. Of course there are poor people<br />
in Switzerland — every country that<br />
has the conspicuously rich has the<br />
poor—but they are few; they will not<br />
accept alms—and the Government<br />
knows it.<br />
As governments go, the Swiss have<br />
a very decent one. Switzerland owns<br />
no colonies, has no imperialistic pol<br />
icy, supports no navy and accordingly<br />
can maintain a pretty high type of<br />
political regime—at least a vastly<br />
higher type than any government can<br />
which possesses these incumbrances.<br />
The Swiss Government is one of the<br />
few governments that is not un<br />
friendly to Co-operation. Its attitude<br />
is nothing worse than that of cheer<br />
ful neutrality. The Swiss press dares<br />
not attack Co-operation. The pulpit<br />
utters no word against it. The<br />
schools teach Co-operation. And the<br />
universities have chairs devoted to its<br />
propagation. All of this comes about<br />
not because Co-operation is a good<br />
thing, but because one half of the<br />
population of Switzerland are in the<br />
Co-operative Movement, and because<br />
the state, the press, the pulpit and the<br />
schools are not leaders of the public<br />
but only reflections of the public will<br />
and intelligence.<br />
I spent two happy weeks in Basel.<br />
Here is the central office of the Union<br />
of Swiss Co-operative Consumers' So<br />
cieties (Verband Schweiz. Konsum-<br />
vereine—V. S. K.), Several of the<br />
<strong>CO</strong>-<strong>OPERATION</strong> IN SWITZERLAND<br />
By J. P. WARBASSE<br />
factories of the wholesale are located<br />
here. Among these, none is more<br />
noteworthy than the shoe factory.<br />
This splendid plant kept running dur<br />
ing the war and has never laid off a<br />
hand during the slack times that fol<br />
lowed. When capitalistic shoe fac<br />
tories in Switzerland were closed or<br />
were working half time or had laid off<br />
half of their employees, this factory<br />
continued to produce shoes at its full<br />
capacity. I said to the manager,<br />
"What do the consumers' societies<br />
say to this production of shoes beyond<br />
their needs? You are making more<br />
shoes than they can buy." He re<br />
plied, "This is not a profit-making<br />
business; it is a social enterprise. We<br />
can afford to do so as long as the fi<br />
nances of the whole society do not<br />
suffer." The consumers who own this<br />
factory are willing to produce shoes<br />
and store them in their warehouses<br />
in order that the employees shall not<br />
be dismissed. Capitalistic business<br />
is not prone to do this sort of thing.<br />
One of the possessions of the Swiss<br />
Union is the ownership of the major<br />
ity of the stock of Bell & Company,<br />
the beef trust of Switzerland. This<br />
illustrates the co-operative method of<br />
socialization. It is done neither by<br />
confiscation nor by compulsory sale,<br />
but by the simple and ordinary<br />
method of business in the free and<br />
open competitive world of economics.<br />
The result is that the Co-operators of<br />
Switzerland now control the meat<br />
monopoly, and have the benefit of the<br />
experience and administrative ability<br />
which that great trust had developed.<br />
This they are able to do and at the<br />
same time have the benefit of 49 per<br />
cent of capitalist capital in the busi<br />
ness. So close is the connection that<br />
the Co-operators have built one of<br />
their own wholesale warehouses im<br />
mediately opposite the packing house<br />
premises.<br />
The Swiss Union acquired the larg<br />
est flour mill in the country by the
24 <strong>CO</strong>-<strong>OPERATION</strong> <strong>CO</strong>-<strong>OPERATION</strong> 25<br />
same means as it acquired the meat<br />
packing business. The millers had<br />
been required to boycott the co-opera<br />
tive bakeries because they sold bread<br />
cheaper than the private bakeries.<br />
The Co-operators solved the problem<br />
by buying the big mill in Zurich.<br />
The beautiful holiday house in the<br />
Rigi Mountains is the Co-operators'<br />
vacation and recreation resort.<br />
Co-operative housing, insurance<br />
and banking are also well advanced<br />
in Switzerland. The educational<br />
printing and the publications issued<br />
by the Union are the best examples<br />
of educational co-operative press work<br />
in Europe. Their printing plant is a<br />
model.<br />
Switzeiiand has 374 co-operative<br />
electric societies which produce elec<br />
tricity for the members. Many of<br />
these get their power from the moun<br />
tain streams and use this falling wa<br />
ter from the melting snow to light<br />
their houses and run their sewing ma<br />
chines.<br />
Let us look at the local co-operative<br />
society of Basel. This city has 135,-<br />
000 population. The society (Der<br />
Allgemeine Consumverein—A. C. V.)<br />
has 41,000 members. Its yearly busi<br />
ness is 60,000,000 francs. There are<br />
more members than there are fam<br />
ilies in the city. The society has a<br />
bakery with 18 ovens, turning out<br />
10,000 loaves of bread daily and many<br />
other products. Sixteen wagons de<br />
liver the bread to the stores. There<br />
are 160 stores, one of which is the<br />
largest retail department store in the<br />
city. The creamery distributes 60,-<br />
000 liters of milk daily. It supplies<br />
more than half of the families in<br />
Basel with milk and is one of the<br />
largest and finest industrial buildings<br />
in the city. Milk is received from<br />
the farm lands of the society just out<br />
side of the city and also from dairy<br />
productive societies. This plant<br />
handles butter and cheese and manu<br />
factures fermented milk products.<br />
With its laboratory, refrigerating ma<br />
chinery and modern apparatus, it is<br />
a standing confirmation of the prin<br />
ciple that the people can carry on<br />
their own business better than private<br />
interests can carry it on for them.<br />
The plant looks like a university<br />
building.<br />
The shoe repairing shop of the<br />
Basel society employs thirty shoe<br />
makers and repairs 1200 pairs of<br />
shoes a week. This society has a<br />
building department and at present<br />
owns 300 dwellings. Independent of<br />
the A. C. V. are several co-operative<br />
building societies developing homes<br />
for the people. The most important<br />
of these is Freidorf, with 180 houses.<br />
The money for this latter enterprise<br />
was largely supplied by the Swiss<br />
Union. The Freidorf society is now<br />
erecting a central building which will<br />
contain stores, an assembly hall, a<br />
gymnasium, restaurant, school and<br />
library.<br />
The Basel society has also a large<br />
savings banking department. Its<br />
bottling department is the largest<br />
wine business in the city. Its own<br />
fire department is so efficient that<br />
the reduction of fire insurance prem<br />
iums nearly pays for its maintenance.<br />
Among the other activities of this so<br />
ciety are a coffee-roastery; petroleum,<br />
coal and wood business; beer, mineral<br />
water and soft drinks bottling; repair<br />
shops; blacksmithing and painting.<br />
This Basel society is the largest,<br />
the most influential and the most<br />
beneficent organization in the city.<br />
Basel is a beautiful and enlightened<br />
community; the co-operative society<br />
is doing more than any other agency<br />
to make it more beautiful and more<br />
enlightened. I doubt if there are<br />
any large societies in the world whose<br />
members in proportion have a better<br />
understanding of Co-operation than<br />
is to be found in Basel.<br />
One can traverse the length of<br />
Switzerland in a few hours. In every<br />
town is a good society. Let me say<br />
a word about the Zurich society. It<br />
is much like that of Basel. Its cen<br />
tral building is the largest and finest<br />
commercial building in the city. The<br />
building occupies a city block. The<br />
retail grocery store on the ground<br />
floor is the most beautiful grocery<br />
store I have ever seen. I am familiar<br />
with the high-toned grocery stores in<br />
New York and other American cities.<br />
None of these compare with the coiperative<br />
store in the little city of<br />
•ich. The interior is of rich golden<br />
xown glazed porcelain tile. Not only<br />
the side walls of this material<br />
but the columns and railings of the<br />
staircase. Porcelain electric chande<br />
liers, fountains and other ornaments<br />
make this interior seem like a palace<br />
hall. The meat and fish department,<br />
with aquariums of living fish, pre<br />
sents more the appearance of a na<br />
tural history museum than a com<br />
mercial business. The two sub-cel<br />
lars with artificial refrigeration, are<br />
packed with perishable foods direct<br />
from the land. As one steps from the<br />
elevator at the top floor, his vision,<br />
through the window, is arrested by a<br />
great snow-capped mountain which<br />
comes down to the very edge of this<br />
beautiful city and adds its charm to<br />
an idyllic scene.<br />
Switzerland is making a contribu<br />
tion toward the solution of the social-<br />
economic question which the Co-oper<br />
ators of all the world may study with<br />
profit. The Swiss Co-operators are<br />
leading the people of that little re<br />
public toward civilization. It was in<br />
deed fitting that the Tenth Interna<br />
tional Co-operative Congress was held<br />
in that land of co-operative promise<br />
and fulfillment for every delegate car<br />
ried back to his own country inspira<br />
tion and ideals which northern Switz<br />
erland best could supply.<br />
THE BUYING CLUB FOR "MIDDLE-CLASS"<br />
<strong>CO</strong>-OPERATORS<br />
How can a successful co-operative<br />
society be organized among middle-<br />
class residents of a city or town—men<br />
and women in business or professional<br />
life?<br />
One answer is, "It can't be done.<br />
Why try?" But that is dodging the<br />
question.<br />
These people are consumers. And<br />
every week many of them are chal<br />
lenging the office of The Co-operative<br />
League to show them the way to or<br />
ganize a consumers' society.<br />
Here is how one group attempts it:<br />
1. The leaders recognize the limi<br />
tations of the majority of the people.<br />
These people are not united by a class-<br />
consciousness such as the organized<br />
workers or farmers have. They have<br />
no common interest. Most of them<br />
are sheer bargain hunters and have<br />
no inkling of the meaning of co-opera<br />
tive solidarity.<br />
2. Confessing these limitations, the<br />
leaders have determined to unite such<br />
people on a straight promise to get<br />
them bargains.<br />
3. Share capital necessary is $25<br />
per member, payable in instalments;<br />
interest on capital is limited. One<br />
By CEDRIC LONG<br />
member has one vote only. No proxy<br />
voting permitted. The society handles<br />
drygoods, stationery, furniture, gro<br />
ceries in large quantities,—all the<br />
common necessities of the home.<br />
4. Goods are sold at cost plus 20<br />
per cent; 10 per cent of this surplus<br />
goes to expenses of operation; the<br />
remaining 10 per cent is returned at<br />
the first of every month in the form<br />
of savings returns.<br />
5. There is no store. A manager<br />
and clerk are employed. They have<br />
their headquarters in a large office<br />
building, displaying a few samples<br />
and wholesale catalogues. Members<br />
place orders in advance and goods are<br />
delivered to homes at wholesale cost<br />
plus 20 per cent, plus delivery ex<br />
pense.<br />
The president of the society justi<br />
fies this form of co-operative buy<br />
ing organization on the following<br />
grounds:<br />
A. We don't want a store. If we attempt<br />
to run a store, we are doing just what<br />
private business does, and we can not com<br />
pete. Why do what everybody else is doing<br />
and lose money? We owe our members<br />
something better.<br />
B. To compete with commercial stores we<br />
must offer our bargain-hunting members
26 <strong>CO</strong>-<strong>OPERATION</strong><br />
lower prices and a rebate. Therefore we<br />
undercut the department store prices on<br />
nearly everything, and in addition we guar<br />
antee a monthly dividend of 10 per cent.<br />
C. We not only save the overhead expense<br />
of running a store, but we eliminate the<br />
expenses of depreciation on a whole lot of<br />
damageable goods. Our member who wants<br />
a new phonograph or suit of clothes, goes<br />
and overhauls the goods that are being<br />
knocked around the department stores by a<br />
thousand people, decides what he wants,<br />
comes to us, and we get it for him in brand<br />
new, perfect condition from the wholesaler.<br />
Wanamaker, Gimbel, or Marshal Field is<br />
our sample room where our people paw<br />
over shop-worn material until they find the<br />
goods that they want their own Co-opera<br />
tive to buy for them.<br />
D. We do not meet the requirements of<br />
the hand-to-mouth purchaser who never<br />
knows what he wants until he needs it.<br />
And we don't want to. Let the chain stores<br />
do it. We are teaching men and women<br />
to plan their purchases a few days ahead<br />
of their needs. And we are demonstrating<br />
to them that it pays to look ahead.<br />
E. As for Ideals and Principles.—Our<br />
members are not yet Co-operators and we<br />
don't try to fool ourselves into believing<br />
that they are. But ultimately they are to<br />
become a part of the Co-operative Com<br />
[This communication is from a pioneer<br />
British Co-operator, now, for many years,<br />
a citizen of the United States. It should<br />
be of interest to all Co-operators in this<br />
young land of co-operative effort. Recently<br />
delegates from the League visited the<br />
Royal Arsenal Society, at Woolwich, Lon<br />
don, England, which is described by Mr.<br />
Rose, who was one of its originators and<br />
its first secretary, in 1850. Today this so<br />
ciety has 70,000 members, a capital of<br />
$5,000,000, an annual turnover of $10,-<br />
000,000. It has 134 branch stores, and<br />
operates its own tea warehouse, its own<br />
preserve factory, bakery, drygoods, house<br />
furnishings, fish and green grocery depots,<br />
and butcher shops; and employs 1,700 per<br />
sons. All this has grown from the early<br />
beginnings which Mr. Rose, who is now a<br />
great grandfather, so picturesquely de<br />
scribes.]<br />
I will give the early experience of<br />
the Royal Arsenal Co-op; but first of<br />
all I will tell of the condition of Co<br />
operation in that district, the factory<br />
end of Woolwich. When I was an in<br />
fant, a Co-op, was started by some<br />
IT PAYS TO STICK<br />
By WILLIAM ROSE<br />
of Trenton, Michigan<br />
monwealth of the future. How get them<br />
ready for that time? We mus_t first ap<br />
peal to their selfish individualistic inter<br />
ests and get them to buy through the same<br />
society. Gradually the monthly dividend<br />
and the quarterly meeting and the visiting<br />
committee will begin to have an effect on<br />
them. They will realize that it is their<br />
society, run by their collective effort, giving<br />
them common advantages. They will begin<br />
to see the difference between such an or<br />
ganization and the ordinary profit-making<br />
institution. They will look around for other<br />
Co-operators. They will learn that they<br />
have something in common with the work<br />
ers co-operative societies.<br />
Is this an ideal co-operative ? Is it<br />
practical as a business proposition?<br />
Is it contributing to the building of a<br />
new social order founded on co-opera<br />
tive principles, or is it only cheapen<br />
ing the cost of living for a group of<br />
middle-class men and women, and<br />
thereby perpetuating the profit-mak<br />
ing system?<br />
Can our middle-class men and wo<br />
men learn to become Co-operators?<br />
And if so, with what form of organi<br />
zation is it best for them to begin?<br />
boiler makers. It ran for 30 years,<br />
but never got out of a two story<br />
house. It was run on the old style;<br />
those that had the most stock had the<br />
most to say for the management.<br />
Then there was the Woolwich bread<br />
society. My father before me helped<br />
to start that on the same principle.<br />
These two, to my own personal knowl<br />
edge, wound up, paying in only a few<br />
shillings on the pound. Then there<br />
was another in the Plumstead dis<br />
trict that started and only lasted a<br />
year. That was the field that I had<br />
to break into, but I was an enthus<br />
iast and I wanted to do something<br />
to leave the world better than I<br />
found it, and after studying with it<br />
on my brain for about three months,<br />
piling up statistics, and having only a<br />
slim education, but some courage, I<br />
finally carried along until I brought<br />
the subject up before a mechanics'<br />
union. About 25 of us met to organ<br />
ize a co-operative society: 18 agreed<br />
to take one pound shares. After de<br />
clining the chairmanship, I did not<br />
wish any office, as being its promoter,<br />
I had to take the first secretary's of<br />
fice.<br />
Three pounds was subscribed the<br />
first night, and a committee of five<br />
elected. The committee met at my<br />
home to formulate a system of work<br />
ing and to propose rules of manage<br />
ment. We wanted the best, so I wrote<br />
to Rochdale for a copy of their rules.<br />
I never got an answer, as their first<br />
secretary, I think his name was Cow-<br />
per, was on his deathbed, but Mr.<br />
McLeoud, our chairman, wrote to the<br />
manager of the Civil Service Co-op,<br />
then running in London. He told us<br />
they started with four members and<br />
advised us to begin without any rules;<br />
to make them as we saw the neces<br />
sity for same. We took their advice<br />
with honest determination. The sec<br />
ond meeting of the directors was in<br />
my home, 11 Elinor Road, Woolwich.<br />
We made two rules: first that our<br />
capital should start with one pound<br />
per member, to raise it as we went<br />
along in installments. I next pro<br />
posed the rule which proved the sheet<br />
anchor of our society; that no man<br />
should have more than one vote, no<br />
matter how many shares he should<br />
hold. At the time we started we<br />
knew nothing of the Rochdale rules.<br />
The next thing was when and where<br />
to start. To rent a store was out of<br />
the question. McLeoud said as soon<br />
as we could buy a few things we<br />
should start. I said they could have<br />
my spare room. After looking it<br />
over that was agreed—and in three<br />
weeks I collected eight pounds, and<br />
with a committee bought a chest of<br />
tea of 90 pounds, 100 pounds of sugar<br />
and two crocks of butter. With those<br />
three articles we started what has<br />
proved to be one of the strongest Co<br />
ops in the British Isles. We had no<br />
overhead expenses. I charged noth<br />
ing for the room. It was only open<br />
two hours—from eight to ten of a<br />
Saturday evening. Two of the com<br />
<strong>CO</strong>-<strong>OPERATION</strong> 27<br />
mittee attended to the sales, in turn.<br />
Understand, it was on a cash basis.<br />
What we took in the first week, with<br />
a few more dollars on shares, enabled<br />
us to add a whole side of sugar cured<br />
bacon, 200 Ibs. more of sugar, 25<br />
pounds of coffee, 3 crocks of butter<br />
and quite a number of spices. And<br />
so it kept accumulating until, at the<br />
end of three months, the little room<br />
was so full we had to get out. The<br />
only expense had been for scoops for<br />
sugar and tea, and scales. Our mem<br />
bership had risen to 30. We had<br />
added drygoods for sale on a Wed<br />
nesday. The grocery goods had to<br />
be moved and the counter prepared<br />
for drygoods, and then moved back<br />
again for the groceries Saturday<br />
night. Now for all this time and for<br />
two years no wages were paid. The<br />
last year we paid for the rent of half<br />
of a house.<br />
The Co-op went slow for three<br />
years, but the directors had grit. At<br />
this time a little trouble started that<br />
was a test for the principle of one<br />
vote for each member. I will state<br />
that on my visit to the office of the<br />
Wholesale in London, Mr. McGinnis,<br />
in commenting upon our start to the<br />
rest of the staff whacked me on the<br />
shoulder and said, "If it had not been<br />
for that little clause you put into the<br />
first rule of one man, one vote, the<br />
Royal Arsenal would have collapsed."<br />
In the fourth year there were 77<br />
members. The next year it jumped<br />
to 232. It rose to 1234 and has kept<br />
climbing until now it has passed the<br />
hundred thousand mark, has over 60<br />
branch stores, 3 big buildings, and<br />
also owns 1100 dwelling houses with<br />
enough room on the estate for 5000<br />
more, and owns also a pretty country<br />
place, Shorenells, where our mem<br />
bers can go for their vacation.<br />
Well I think I have given you<br />
enough experience of how we started.<br />
I am now too far advanced in years<br />
to puzzle my brain any further, but<br />
I am glad to know that I have done<br />
one thing that is a success and a bene<br />
fit to my fellow-men.'
28 <strong>CO</strong>-OPEKATION <strong>CO</strong>-OPEKATION 29<br />
PRACTICAL WORK OF THE LEAGUE<br />
REPORT OF THE ACTIVITIES OF<br />
THE <strong>CO</strong>-OPERATIVE LEAGUE<br />
FOR 1921<br />
During the past year The League:<br />
1—Sent out, in response to re<br />
quests, 131,732 pieces of literature<br />
and 1500 books.<br />
2—Published two monthly maga<br />
zines, averaging 12,000 copies per<br />
month.<br />
3—Issued a monthly practical bul<br />
letin to affiliating societies, and sent<br />
out a news service to 129 papers of<br />
the labor press.<br />
4—Received and answered 3500 let<br />
ters asking for advice and informa<br />
tion ; and sent out 10,300 circular let<br />
ters on routine work of the Co-opera<br />
tive Movement.<br />
5—Conducted two courses in Co<br />
operation over a period of three<br />
months; embracing Store Manage<br />
ment, Accounting, and Educational<br />
subjects.<br />
6—Published a syllabus for the<br />
study of Co-operation in schools, col<br />
leges and study groups.<br />
7—Sent speakers to 162 meetings<br />
in 35 states from coast to coast.<br />
8—Sent two delegates to the Inter<br />
national Co-operative Congress in<br />
Switzerland, who visited over 200 co<br />
operative institutions in 10 countries,<br />
addressed audiences in Denmark, Ger<br />
many, Czecho-slovakia and Switzer<br />
land, and lectured at the International<br />
Summer School at Basel.<br />
9—Interviewed 500 visitors in the<br />
offices of The League from the U. S.<br />
and 12 foreign countries.<br />
10—Circulated illustrated lectures<br />
and moving picture films on Co-opera<br />
tion.<br />
11—Wrote 50 special articles for<br />
magazines and newspapers.<br />
12—Organized Women's Guilds,<br />
and sent suggestions for socials, en<br />
tertainments and members' meetings<br />
to 400 societies.<br />
13—Gave legal advice on incorpora<br />
tion, charters, taxation, litigations,<br />
etc.<br />
14—Drafted a model co-operative<br />
law for introduction in all states.<br />
15—Investigated and lodged formal<br />
complaints with State authorities<br />
against fake co-operatives, and<br />
warned societies of fraudulent and<br />
unsound enterprises.<br />
16—Published advice and warnings<br />
on the falling market, overbuying, in<br />
come tax, and other practical business<br />
policies.<br />
17—Gave written advice on prob<br />
lems of store management, sent out<br />
technical advisers, and supplied .ac<br />
countants and managers where they<br />
were needed.<br />
18—Established one District Ad<br />
viser in Kansas, and New Mexico.<br />
19—Revised and brought up to date<br />
"The Story of Co-operation," "The<br />
British Co-operative Movement" and<br />
other leaflets on Co-operation.<br />
20—Through news clipping agen<br />
cies and papers coming into the office<br />
from all the states, The League has<br />
been able to keep a card catalogued<br />
record of the co-operative enterprises<br />
starting and failing. It sends out let<br />
ters and literature to all these so<br />
cieties, offering advice and help.<br />
"HOME <strong>CO</strong>-OPERATOR"<br />
LAUNCHED<br />
One of the most interesting things<br />
to be observed by the co-operative<br />
travelers in Europe is the preva<br />
lence of popular little monthly maga<br />
zines circulated among the members<br />
of the co-operative societies. In<br />
every country where Co-operation is<br />
booming, these little home magazines<br />
are found. They are simple in<br />
style, and usually contained a good,<br />
snappy editorial on some phase of Co<br />
operation, and news of the Movement.<br />
It was found that these little home<br />
magazines were one of the most effec<br />
tive means of keeping the interest of<br />
the members at white heat.<br />
"Why cannot the Co-operatives in<br />
this country use this powerful and<br />
simple educational medium ?" was the<br />
II<br />
thought that came to our minds. Ac<br />
cordingly, we have launched a new<br />
magazine—the "Home Co-operator."<br />
It is a four-page monthly paper which<br />
keeps the individual members of local<br />
societies in close touch with the big<br />
events in the Movement, and edu<br />
cates them constantly in the co-opera<br />
tive idea. It pushes the co-operative<br />
idea in such a way that the people<br />
will read it.<br />
To place a copy of this magazine in<br />
the hands of each and every member<br />
of a society will cost you only twelve<br />
cents a year. If a society has three<br />
hundred members, it will cost ?3 a<br />
month to keep them interested and in<br />
formed about the Movement. Is it a<br />
good investment? The condition of<br />
the Movement in Germany, France,<br />
Switzerland and other countries,<br />
where this educational work is being<br />
used, is the best answer.<br />
If further details or sample copies<br />
are desired, write to Albert Sonnich-<br />
sen, the Editor of the "Home Co-oper<br />
ator," Willimantic, Connecticut.<br />
A MODEL <strong>CO</strong>-OPERATIVE LAW<br />
A Model Co-operative Law for<br />
adoption by the various State Legis<br />
latures has been drafted after more<br />
than a year of study by the Commit<br />
tee on Legislation of The League.<br />
The Model Law fills a real need.<br />
There are few States having even<br />
passable laws governing Co-opera<br />
tive societies. Some States do not<br />
permit Co-operatives to follow the<br />
Rochdale principle of "one vote for<br />
every membmer;" some allow proxy<br />
voting. Very few States have drawn<br />
a clear distinction between Roch<br />
dale Co-operation and the fake ar<br />
ticle. The Model Law was drawn<br />
up with a view to these and many<br />
other factors.<br />
If adopted universally, the Model<br />
Law will undoubtedly stimulate the<br />
development of the Movement,<br />
while at the same time stamping out<br />
the fakers. Co-operative societies<br />
should prevail on the State repre<br />
sentatives in their districts to intro<br />
duce the Model Co-operative Law<br />
into their legislatures at the ear<br />
liest possible moment. Copies of the<br />
Model Law will be sent on request.<br />
HOUSING IN EUROPE<br />
Our readers will be interested in an<br />
article appearing in the February<br />
number of the Review of Reviews,<br />
entitled, "Co-operative Homes for<br />
Europe's Homeless," by Agnes Dyer<br />
Warbasse. It is an article of 7,000<br />
words with sixteen illustrations, de<br />
scribing at length her studies of co<br />
operative housing in nine European<br />
countries during last summer. The<br />
manner in which the housing crisis is<br />
being handled by our fellow Co-oper<br />
ators abroad is most encouraging and<br />
stimulating.<br />
WOMEN'S GUILD ORGANIZED IN<br />
A <strong>CO</strong>URT-ROOM<br />
The Court Room at Pratt, Kansas,<br />
was used for an unusual purpose last<br />
month by the Co-operators of that<br />
city. Permission was secured for the<br />
use of the Court Room by the Co-op<br />
erative Society which held an educa<br />
tional meeting at which Mrs. Mabel<br />
W. Cheel, of The League, spoke. Be<br />
fore the meeting had been finally ar<br />
ranged for, Mrs. Cheel insisted on<br />
having women at the meeting. One<br />
hundred and fifty women turned out,<br />
interested and keen for an afternoon<br />
in court. An enthusiastic meeting<br />
was held, which was followed by the<br />
formation of a Woman's Guild.<br />
It was a sight good for the eyes of<br />
Co-operators. In the rotunda of the<br />
Court House, tables were set up from<br />
which refreshments were served to<br />
the audience after the meeting. Law<br />
yers and clerks who had occasion to<br />
visit the Court House to file papers<br />
rubbed their eyes in astonishment to<br />
see the place in the hands of the co<br />
operative society.<br />
Since this meeting, many women<br />
have joined the society, and the or<br />
ganization of the Women's Guild<br />
promises to be of substantial help in<br />
promoting loyalty and enthusiasm<br />
among the members.
I 1<br />
30 <strong>CO</strong>-<strong>OPERATION</strong> <strong>CO</strong>-<strong>OPERATION</strong> 31<br />
<strong>CO</strong>-OPERATIVE MOVING PIC<br />
TURE THEATRE<br />
It is possible for the audience to<br />
run the show. A fine-looking theatre<br />
building was erected and is owned by<br />
the people of New Athens, 111., on a<br />
co-operative basis. Mr. Wuess, the<br />
manager of the local co-operative<br />
store, took the initiative and put the<br />
proposition up to the members of his<br />
society and the rest of the citizens<br />
of the little town. There was not a<br />
decent show house in the community,<br />
and he proposed that the citizens who<br />
liked shows should put up the money<br />
themselves and build one. Immedi<br />
ately $15,000 was raised in cash, a<br />
mortgage loan of a similar amount<br />
was secured from the local bank, and<br />
the theatre became a fact. Four<br />
nights a week the society runs a mov<br />
ing picture show, charging only ten<br />
cents admission. The profits now go<br />
to paying up the mortgage. On the<br />
other two nights of the week the<br />
theatre is rented to outsiders, some<br />
times to regular theatrical road<br />
shows, which hitherto had never been<br />
able to visit the town. The interior<br />
is beautifully fitted up and seats 700<br />
people. Similar co-operative theatres<br />
may be found in Beuld and Staunton,<br />
111., and in Newmanstown, Pa.<br />
<strong>CO</strong>-OPERATIVE BANK AT<br />
HAMMOND, IND.<br />
On October 20th the Brotherhood<br />
of Locomotive Engineers bought 51<br />
per cent of the stock of the People's<br />
State Bank of Hammond, Ind., which<br />
is now known as the People's Co-oper<br />
ative State Bank of Hammond, Ind.<br />
This bank is being operated along<br />
the same lines as the Brotherhood of<br />
Locomotive Engineers' Co-operative<br />
National Bank and some of the gen<br />
eral officers of the B. of L. E. are on<br />
its board of directors. Since the re<br />
organization of the Hammond Bank<br />
its deposits have grown over $60,000.<br />
Hammond and vicinity is a highly in<br />
dustrial section, and this bank gives<br />
NEWS AND <strong>CO</strong>MMENT<br />
the workers a fine opportunity to in<br />
vest their efforts and their money<br />
in the great work of democratizing<br />
finance.<br />
HOW THE FARMERS' UNION IN<br />
SURES THE <strong>CO</strong>-OPERATORS<br />
The Farmers' Union Co-operative<br />
Insurance Company began work in<br />
October, 1918, and by August, 1921,<br />
had eleven and a half millions of dol<br />
lars of insurance in force. The farm<br />
ers are insured against loss by fire,<br />
lightning, windstorm, and tornado.<br />
The cost has proved to be about $7.50<br />
per $1,000 for three years, whereas<br />
the same insurance in the old-line<br />
companies would be about $17.50.<br />
Therefore the cost of co-operative in<br />
surance to these farmers is less than<br />
half of what it once was when they<br />
were at the mercy of profit-making<br />
insurance companies.<br />
In three years these Co-operators<br />
have saved themselves more than<br />
half a million dollars. They have<br />
also learned to run the complicated in<br />
surance business. And now they are<br />
preparing to go in for hail insurance<br />
and other activities beyond that. The<br />
workers of our cities can learn some<br />
thing from these agricultural Union<br />
ists and Co-operators.<br />
THE CLEVELAND DAIRY<br />
PROGRESSES<br />
The Consumers' Milk Distributing<br />
Society of Cleveland, Ohio, which was<br />
started about the first of December,<br />
had collected and had in hand over<br />
$8,000 in the first month. Over<br />
$20,000 had been subscribed.<br />
The private milk dealers at first<br />
told the people of Cleveland that they<br />
were making only a quarter of a cent<br />
a quart on milk. But since the co<br />
operative creamery has started to or<br />
ganise, the private dpalers have put<br />
down the price of milk two cents.<br />
The co-operative cloud on the horizon<br />
seems to be accomplishing something.<br />
The dealers, according to their own<br />
statements, now feel so sorry for the<br />
I<br />
people that they are willing to lose<br />
one and three quarters of a cent a<br />
quart. Thus the co-op creamery is<br />
already saving the people over $1,000<br />
a day on their milk bills. When the<br />
creamery starts operations and there<br />
is a drop of a cent or two more,<br />
there may be a saving of $100,000 a<br />
month to the people. In other words,<br />
the co-op is indirectly declaring divi<br />
dends to consumers equivalent to 10<br />
per cent on over $3,500,000 of sales a<br />
year. ______<br />
ILLINOIS STORES THRIVE<br />
The news coming in from the local<br />
societies in Illinois is encouraging.<br />
The Farmington Co-operative Society<br />
returned savings to its members, of<br />
8 per cent, amounting to $2,733. This<br />
society did a business during the last<br />
quarter of $43,074. About a year<br />
ago its business was in the neighbor<br />
hood of $20,000 a quarter, so that the<br />
society has made a gain of more than<br />
100 per cent in business. This co-op<br />
is one of the Rochdale societies, affili<br />
ated with the Central States Co-op<br />
erative Wholesale Society.<br />
The Pana Co-operative Society, de<br />
spite its slender resources, which<br />
amounted only to $3,920, paid a 5<br />
per cent savings-return during its last<br />
quarter, in addition to interest on<br />
share and loan capital.<br />
"OUR CAFETERIA"—NEW YORK<br />
CITY<br />
The last balance sheet of Our Cafe<br />
teria, organized in 1920, for the last<br />
half-year shows that the current as<br />
sets are more than eighteen times the<br />
current liabilities. For the six months<br />
$82,000 worth of business was done.<br />
After deducting all administrative<br />
and operating expenses and after set<br />
ting aside $1,874 for depreciation and<br />
taxes, there remained a surplus of<br />
$5,529 for the half year. An 8 per<br />
cent savings-return was paid. This<br />
co-operative restaurant now uses two<br />
whole buildings in New York City—<br />
52 East 25th Street and 54 Irving<br />
Place. It has recently opened a new<br />
downtown branch at 32 Thames<br />
Street, near the Curb Market. Real<br />
co-operation is penetrating into the<br />
district of "big business."<br />
A MINIATURE <strong>CO</strong>-OPERATIVE IN<br />
CLEVELAND<br />
The co-operative idea is spreading<br />
in Cleveland, Ohio. The girls of the<br />
Industrial Club of the Y. W. C. A.<br />
have started a co-operative store. It<br />
is said to be the smallest department<br />
store in the city. Its stock occupies<br />
a space about as big as a couple of<br />
writing desks, and consists of most<br />
everything that young women want,<br />
from hairpins to hand bags. Many<br />
hand-made articles are carried. Home<br />
made candy is among the goods sold.<br />
Shares are $1 each. A savings-re<br />
turn of 4 per cent was paid at Christ<br />
mas time. Smaller beginnings than<br />
these have led to great economic<br />
structures in Europe.<br />
WARNING FROM MISSOURI<br />
The Co-operative Association of<br />
America is formed under the com<br />
mon law of Missouri as a trust estate,<br />
and the records of the Recorder's<br />
Office show the names of Clifton C.<br />
Fitzpatrick, Oscar H. Damon and<br />
Arthur Lesser as Trustees of all<br />
funds, property and estates, to hold<br />
same in trust during their life time.<br />
They have put a large number of<br />
stock salesmen in the field and have<br />
been successful in floating quite a<br />
large amount of this stock. So far<br />
their activities have been confined<br />
principally to the city of St. Louis.<br />
They guarantee the shareholders 5<br />
per cent, discount on his merchandise<br />
purchases, and 6 per cent, on their in<br />
vestment to be paid out of the sur<br />
plus of the Association. In addition,<br />
the Association is to retain 3 per<br />
cent, of the turnover of the stores.<br />
They tell the people that as soon as<br />
300 members have been secured in<br />
their neighborhood that a store will<br />
be started. So far they have only<br />
one store started.<br />
The next we heard of them was<br />
when two of their stock salesmen
32 <strong>CO</strong>-<strong>OPERATION</strong> <strong>CO</strong>-<strong>OPERATION</strong><br />
appeared at Moberly, Mo., and tried<br />
to induce the railroadmen who were<br />
trying to organize a co-operative so<br />
ciety there to turn the organization<br />
over to them. They took the matter<br />
up with The Co-operative League of<br />
Missouri and we advised them to re<br />
port these gentlemen to the Prose<br />
cuting Attorney immediately. We<br />
have heard nothing more from<br />
them. We will see that every labor<br />
group in the State is advised of the<br />
fact that they are in no sense a co<br />
operative organization.—The Co<br />
operative League of Missouri.<br />
STRIKE INSURANCE<br />
The masters of industry now<br />
realize that, in assuming the "open<br />
shop," wage cutting task, they "bit<br />
off more than they could chew." Face<br />
to face with the fight of their lives,<br />
yet eager to protect their own inter<br />
ests and safeguard profits, employers<br />
in various sections of the country<br />
have taken strike insurance.. This<br />
precautionary measure assures the<br />
employer a certain income, even<br />
though his business is completely<br />
tied up by a strike against wage re<br />
duction, or a strike for any other<br />
reason.<br />
By investing a small amount of<br />
money with his fellow-workers, the<br />
wage-earner can also have a most<br />
practical form of strike insurance;<br />
he can hold a policy in the most re<br />
liable company in all the world. Be<br />
tween five and six hundred working<br />
people in Bloomginton, 111., alone are<br />
carrying this model strike insurance,<br />
and the number is increasing. Poli<br />
cies are written by the Bloomington<br />
Co-operative Society, and they are<br />
known as membership certificates;<br />
they simply signify that the holder<br />
owns five shares of stock in the Co-op.<br />
Very simple, is it not?<br />
Membership in the Co-operative<br />
Movement is the greatest, most re<br />
liable protection against hardships<br />
and inconveniences usually attending<br />
protracted strikes and lockouts. A<br />
workingman, with an investment in<br />
a Co-operative Store, is well provided<br />
with strike or lockout insurance, be<br />
cause he is guaranteed a specific<br />
amount of credit; he knows that he<br />
will not suffer hunger, even though<br />
he is forced on strike or is locked<br />
out. Commercial boycotts and star<br />
vation schemes have no terrors for<br />
the holder of a membership certificate<br />
in a co-operative store.<br />
Just how well any local union is<br />
prepared to win a strike or a lock<br />
out depends largely upon how many<br />
members of that organization have<br />
provided themselves with practical<br />
insurance by identifying themselves<br />
with the co-operative movement.<br />
Those of us who believe in this won<br />
derful movement and work for it<br />
must redouble our efforts as insur<br />
ance agents, because the trade union<br />
movement is going to face a fight<br />
for its life, and organized labor must<br />
be placed in a state of preparedness.<br />
—Martin A. Dillman, in The Bloom<br />
ington Searchlight.<br />
<strong>CO</strong>-<strong>OPERATION</strong> DAWNS AGAIN<br />
IN IRELAND<br />
In looking back over our Irish<br />
Movement during the terrible period<br />
now happily drawing to a close, it is<br />
consoling to find that notwithstand<br />
ing all the hardships and untoward<br />
circumstances under which it has la<br />
bored, a certain amount of real pro<br />
gress has been made. Many of our<br />
creamery societies have adopted the<br />
general store idea with much more<br />
far-reaching results than the ma<br />
terial convenience of such expansions.<br />
Members or milk suppliers of these<br />
societies whose interest in the concern<br />
did not extend beyond the price they<br />
received for their milk, and whose<br />
knowledge of the Movement was a<br />
blank page, have been transformed<br />
into earnest, enthusiastic Co-opera<br />
tors. The Irish Co-operative Women's<br />
Guild Movement has struck its roots<br />
deeply into the working of societies,<br />
and it is destined to grow into a pow<br />
erful influence for co-operative pro<br />
gress. Manufacturing of our famous<br />
Irish homespuns has been taken in<br />
hand, on co-operative lines, and the<br />
manufacture of clothing is already<br />
one of our chief Co-operative develop<br />
ments. In various other directions<br />
the co-operative idea is being en<br />
grafted on industry.<br />
There are other industries lending<br />
themselves in a particular manner to<br />
co-operative enterprise. What is now<br />
to prevent our engaging in them?<br />
What about our once famous tan-<br />
naries ? How much longer are our in<br />
numerable mills to remain as solitary<br />
ruins along the banks of our noble<br />
rivers? When and by whom shall<br />
our silver, lead, copper and iron mines<br />
be re-opened? What about the un<br />
told wealth of our fisheries, our tex<br />
tiles, our foundries ? Shall we await<br />
the advent of syndicates of capital<br />
ists to exploit our country, enrich<br />
themselves at the expense of our la<br />
bor, and substitute an economic for a<br />
political slavery on our race? Or<br />
shall we, as men, as Co-operators,<br />
look squarely at the facts presented,<br />
and recognizing in their true perspec<br />
tive the potentialities of our country,<br />
determine, by combined effort, to re<br />
store her industrial life, to develop<br />
her bounteous and varied resources,<br />
and to make her what she was in<br />
tended by God and Nature to be, a<br />
queen amongst the nations of the<br />
earth?—From the Irish Agricultural<br />
Wholesale Society Bulletin.<br />
WISDOM FROM GERMANY<br />
During the session of the Reichs<br />
tag, November 17th, the Minister of<br />
Public Economy, Herr Schmidt, re<br />
sponding to the complaints against<br />
those who were exploiting the misery<br />
of the public, made the following re<br />
marks concerning the co-operatives:<br />
"The consumer has within his grasp<br />
a weapon which is very powerful, with<br />
which to defend himself against the<br />
exactions of business; it is the co<br />
operative organization. Let him make<br />
use of it. He can be sure that the<br />
little that he gives to the co-opera<br />
tives will not go toward the payment<br />
of tithes to commercial speculation.<br />
"I see the position of the consumers<br />
reinforced by means of the consum<br />
ers' co-operatives and the network of<br />
their organization. I wish to call at<br />
tention to the co-operatives, which,<br />
through their development, are com<br />
peting against the commercial inter<br />
ests in cutting down high prices.<br />
This practice of self-help, this educa<br />
tion of the consumer is, in my opinion,<br />
worth infinitely more than all the<br />
laws and all the penal decrees."<br />
ITALIAN GOVERNMENT AIDS<br />
<strong>CO</strong>-<strong>OPERATION</strong><br />
The Italian Parliament recently<br />
passed a law which increases by 200,-<br />
000,0000 lire, the amount granted by<br />
the State to the National Credit In<br />
stitute for Co-operation. This Insti<br />
tute which has headquarters in Rome<br />
and about twenty branches in the<br />
chief provincial towns was consti<br />
tuted by Royal decree in 1913, in or<br />
der to place at the disposal of co<br />
operative societies of all kinds the 'ne<br />
cessary credit for the development of<br />
their activities.<br />
The Institute at Rome is the most<br />
important financial establishment of<br />
Italian Co-operation. At the end of<br />
1919 it had relations with 5,370 co<br />
operative societies, comprising 3,621<br />
distributive societies, 1,227 produc<br />
tive and labor societies, 349 agricul<br />
tural societies, 22 agrarian universi<br />
ties, and 151 miscellaneous societies.<br />
During 1920 it granted loans to the<br />
total amount of 885,000,0000 lire<br />
(against 310,000,000 in 1919). Dur<br />
ing 1920 loans to the amount of 142,-<br />
000,000 lire were granted to 380 pro<br />
ductive and labor societies, in order<br />
to enable them to execute works to<br />
the value of 218,000,000 lire. The<br />
agricultural societies received consid<br />
erable support from the Institute, and<br />
were thus enabled to more than treble<br />
the amount of land under their culti<br />
vation. ______<br />
HUNGARIAN DOCTORS <strong>CO</strong><br />
OPERATE<br />
The National Union of Hungarian<br />
Doctors organized a co-operative so<br />
ciety for the manufacture of surgical<br />
instruments and orthopedic appli-
34 <strong>CO</strong>-<strong>OPERATION</strong> <strong>CO</strong>-<strong>OPERATION</strong> 35<br />
ances. Organization proceeded slowly<br />
until the "Hangya" Union gave its<br />
support to the new society. Work<br />
shops have now been opened in which<br />
from 30 to 40 skilled workmen are<br />
employed, manufacturing the most<br />
delicate surgical instruments. Or<br />
thopedic appliances, hospital furni<br />
ture, laboratory requisites, operating<br />
tables, etc., are also being manufac<br />
tured. The Board of Directors of the<br />
society consists of doctors and of ex<br />
perienced Co-operators.<br />
Two large co-operative unions in<br />
Hungary, the "Hangya" and the Cen<br />
tral Co-operative Credit Institute,<br />
have established a first-class hospital<br />
with 60 beds. This hospital is avail<br />
able for employees of the co-operative<br />
societies.<br />
A FRENCH "<strong>CO</strong>-OPERATIVE<br />
DAY"<br />
The Co-operators of France made a<br />
national drive for increased member<br />
ship on December 4th. The day had<br />
been prepared for as an important<br />
gala day for French Co-operators.<br />
The French Union was busy for weeks<br />
preparing posters, and literature, or<br />
ganizing meetings in various cities,<br />
all culminating in a great appeal to<br />
non-members to come into the Co<br />
operative Movement. The fourth of<br />
December fell on a Sunday, and the<br />
day was celebrated throughout the<br />
whole country. A special edition of<br />
"L'Action Co-operative," the official<br />
journal of the French Movement, was<br />
distributed.<br />
Most of the local societies partici<br />
pating in the drive had very gratify<br />
ing results. The Co-operative Union<br />
at Paris led in the number of new<br />
members recruited, and the capital<br />
collected. In one little town in the<br />
region of the Marne, it was found that<br />
all the inhabitants were Co-operators,<br />
with the exception of seven men.<br />
The usual mass meeting was held in<br />
this town on "Co-operative Day," and<br />
then the whole mass meeting went in<br />
a body to the homes of the seven non-<br />
members. Needless to say, the seven<br />
joined! The town is now 100 per<br />
cent co-operative.<br />
At San Quentin, 123 new members<br />
were signed up and the capital was<br />
increased by 102,000 francs, the day<br />
of the big drive. At Gueret, 150 new<br />
members and 30,000 francs were col<br />
lected in one day. The reports are<br />
not as yet all in for entire France, but<br />
all indications prove that the national<br />
campaign during "Co-operative Day"<br />
was a huge success.<br />
Up to the 1st of January, 222 so<br />
cieties reported gains of 14,597 new<br />
members. In the banks, the capital<br />
was increased 1,606,389 francs and de<br />
posits were increased 100,000 francs.<br />
<strong>CO</strong>URSE ON <strong>CO</strong>-<strong>OPERATION</strong> IN<br />
THE <strong>CO</strong>LLEGE OF FRANCE<br />
Charles Gide, the eminent Co-<br />
operator, author and economist, has<br />
been appointed to the new chair of<br />
Co-operation at the College of<br />
France, Paris.<br />
This is considered by our French<br />
fellow Co-operators to be an event<br />
of extreme importance. They see<br />
in it a recognition of the value and<br />
the position that the Co-operative<br />
Movement occupies in the national<br />
life.<br />
Although seventy-four years old<br />
and weighed down with the numer<br />
ous and important positions that he<br />
has continuously occupied in the<br />
educational and economic world,<br />
Monsieur Gide assumes his new du<br />
ties with enthusiasm, for he is dedi<br />
cated to the promotion of the knowl<br />
edge of what he believes to be "the<br />
greatest of all causes—the Consum<br />
ers' Co-operative Movement."<br />
A dinner was tendered to him on<br />
the eve of the opening of the course<br />
at which glowing tributes to the<br />
years of service were made to<br />
"France's foremost Co-operator, the<br />
kind friend, the wise teacher, the<br />
illustrious leader of the Co-opera<br />
tors of all lands."—Extract from<br />
communication from A. Daudet-<br />
Bancel, December 21; Union of<br />
French Consumers' Societies.<br />
THE <strong>CO</strong>NDITION OF CHAIN<br />
STORES IN NEBRASKA<br />
Our Farmers' Union State Exchange is<br />
operating eight branch stores. The first<br />
of these was opened in March, 1920, and<br />
five others were opened in that year. Two<br />
have been put in since last spring. You<br />
understand how these are organized. The<br />
local people take stock in the State Ex<br />
change, and the Exchange owns and oper<br />
ates the stores. Of course, the branch<br />
store business is quite incidental to the<br />
larger business of the Exchange in supply<br />
ing independent co-operative associations<br />
and groups of Farmers' Union members<br />
throughout the state.<br />
Up to last March the branch stores were<br />
not very satisfactory to anybody, either<br />
the local people or the Exchange manage<br />
ment. In March, the Exchange employed<br />
a chain store expert, a man formerly with<br />
the "A. & P." system, to put the branches<br />
on a satisfactory basis, and to extend the<br />
system. He has succeeded in making the<br />
branch stores satisfactory to the local<br />
people, but they are still financially un<br />
profitable. That is why only two stores<br />
have been added to the system since the<br />
expert came. No others are contemplated.<br />
<strong>CO</strong>RRESPONDENCE<br />
One of these branch stores, one of the<br />
two started last summer, is here in Omaha.<br />
It differs from the others in that its pat<br />
rons subscribe to no stock in the State<br />
Exchange. The reason for putting it in<br />
was to afford an outlet for produce coming<br />
to the Exchange from stores out in the<br />
state. I understand that the Exchange has<br />
offered to turn this store over to the labor<br />
ing people here whenever they organize an<br />
association to handle it. If the labor peo<br />
ple of Omaha are ever going to do anything<br />
co-operatively they should do it for them<br />
selves, and not be spoon-fed.<br />
Just now the Board of Directors of the<br />
Farmers' Union State Exchange is consid<br />
ering a form of contract with independent<br />
co-operative stores throughout the state<br />
to supply them with all of their goods.<br />
This would give all of the advantages of<br />
the chain-store system, without the very<br />
serious disadvantages. Our big problem<br />
has been to get the local Farmers' Union<br />
Co-operative stores to mobilize their buying<br />
through the State Exchange. This diffi<br />
culty is made the greater by the fact that<br />
the stock of the Exchange is owned by in<br />
dividuals, instead of the local associations,<br />
as it should be.<br />
L. S. HERRON.<br />
FROM CRESTLINE, OHIO<br />
The Crestline Co-operative has opened a<br />
second store in the downtown part of our<br />
village, which is operated entirely cash and<br />
carry. The first store retains the credit<br />
and delivery system. We opened about<br />
eight weeks ago, and have had good suc<br />
cess so far.<br />
On November 29 we had a stockholders'<br />
meeting, attended by over 250 members<br />
and families and friends. Roy Shanks was<br />
speaker of the evening and gave us a fine<br />
interesting talk. He also helped in getting<br />
the new store started. We remembered<br />
your advice and had the meeting largely<br />
social—music, speaking, and lunch, with our<br />
best coffee, real cream, cream doughnuts<br />
and sandwiches served to all present, and<br />
dancing afterwards. Everybody was en<br />
thusiastic and had a good time.<br />
R. G. DONALDSON,<br />
Vice-Pres. Crestline Co-operative Co.<br />
MAKING <strong>CO</strong>-OPERATORS IN<br />
WIS<strong>CO</strong>NSIN<br />
Enclosed please find one check, covering<br />
$20, and another one, covering $5. The<br />
Co-operative Central Exchange decided to<br />
donate one year's subscription of "Co<br />
operation" to twenty of the students at<br />
tending our last Co-operative course. The<br />
25 names are appended. The other five<br />
subs have been solicited by the under<br />
signed.<br />
Wishing you a happy and .prosperous<br />
New Year, I am<br />
Yours for Co-operation.<br />
SEVERI ALANNE.<br />
YARDLEY HAS DIFFICULTIES<br />
AND HOPE<br />
The manager we had previous to July 10,<br />
1921, ran us behind $700 in five months,<br />
and the stockholders at their meeting last<br />
June were ready to quit; but we succeeded<br />
in changing by-laws and changing our<br />
shares from $100 to $25 a share. The<br />
newly-elected Board took hold and fired<br />
the manager and hired another, who, in<br />
turn, fired a clerk and hired another. In<br />
voice at end of first quarter showed over<br />
$200 on the right side for the quarter; but<br />
this present quarter is not going to be so<br />
good, as business has fallen off. However,<br />
beginning the first of the year, the em<br />
ployees have cut their salaries the sum<br />
total of $22 per month, so you see we are<br />
having to fight for our bare existence. We<br />
are handicapped for want of cash to buy<br />
with, as we pay cash for all goods bought,<br />
and sell on credit to members. We have<br />
several loyal Co-operators, but we can't say<br />
much for a number of our members.
36 <strong>CO</strong>-<strong>OPERATION</strong><br />
I do believe we are going to be able to<br />
live through it. We don't get the support<br />
of the community we should have by far;<br />
yet we give better service, better goods,<br />
and, I honestly believe, better prices.<br />
Yours, etc.,<br />
H. H. PERKINS,<br />
Secretary Consumers' Co-operative Society.<br />
Yardley, Wash., December 21, 1921.<br />
HAPPINESS IN WORKING<br />
TOGETHER<br />
There is no happiness greater than that<br />
obtained from the association of kindred<br />
spirits, searching toward a goal which<br />
means the good of all mankind. I am<br />
happy to be associated with you.<br />
MARY RAOUL MILLIS,<br />
Atlanta, Ga., Co-operative Society.<br />
THE ONE-VOTE PRINCIPLE<br />
To my mind, when the fundamental prin<br />
ciple of one vote to one member is broken<br />
the whole foundation of Co-operation is<br />
broken. H. HASKELL,<br />
Union Workers' Credit Union.<br />
Boston, Mass.<br />
BOOK REVIEW<br />
"The Consumers' Co-operative Movement."<br />
The book with the above title, by Sidney<br />
and Beatrice Webb, published by Long<br />
mans, Green & Co., is not a history of the<br />
Co-operative Movement, but a technical dis<br />
cussion of its methods and its relation to<br />
other movements making for democracy.<br />
It is based especially upon the British<br />
Movement. The authors frankly take the<br />
ground that Co-operation need no longer be<br />
discussed as a means for helping the poor<br />
to save a little or as a scheme for reducing<br />
the cost of living, but that the Consumers'<br />
Co-operative Movement is capable of sup<br />
planting in a large measure the capitalist<br />
system.<br />
Six full chapters contain not only a vast<br />
amount of information, but present a phil<br />
osophy to which the Movement itself has<br />
given rise. The first chapter describes the<br />
distributive store and the practical work<br />
ing of the society. The deficiencies of<br />
educational work is deplored. When socie<br />
ties progress enough to employ a full-time<br />
educational secretary they are found pay<br />
ing him less than one-half what they pay<br />
•the store manager. They note the same<br />
disregard for the value of the intellectual<br />
teacher, compared with the employee who<br />
has to do with money and goods, that is<br />
found in capitalistic business.<br />
The chapters on federal institutions deals<br />
with national organizations such as the<br />
C. W. S., the Union and the Women's<br />
Guild.<br />
A chapter on co-operative employees<br />
give_s the essential information on this<br />
subject from the British standpoint. The<br />
chapter on the effects upon the Co-opera<br />
tive Movement of the great war sets forth<br />
the facts which reveal the prostitution of<br />
the British government to the privileged<br />
profit-making interests and the reasons<br />
why the Co-operators were impelled to en<br />
ter politics.<br />
The Co-operative Movement has reached<br />
a point at which criticism of its defects<br />
must not be withheld. The Webbs have<br />
realized this, and have written a chapter<br />
on some remediable defects and shortcom<br />
ings of the Movement in Great Britain.<br />
This is a most opportune contribution. It<br />
is fair and impartial and should prompt<br />
British Co-operators to give it their serious<br />
consideration—and the Webbs their thanks.<br />
The future of Consumers' Co-operation<br />
is discussed in the most illuminating man<br />
ner. Conclusions are based on facts. The<br />
authors visualize the continuous growth of<br />
Co-operation, but do not consider it as a<br />
substitute for the state, nor do they ex<br />
press a belief that it may supplant the<br />
state. They see a place in the future for<br />
both voluntary and compulsory association<br />
of the people. They say:<br />
"The Consumers' Co-operative Move<br />
ment in Great Britain was for the first<br />
half century of its development from the<br />
Toad Lane Store ignored by the news<br />
papers, unsuspected by Parliament, barely<br />
noticed by the .professors of political econ<br />
omy, unmentioned in the contemporary me<br />
moirs and diaries of the leaders of society,<br />
and not even alluded to in the biographies<br />
of such political personages as Cobden and<br />
Bright, Gladstone and Disraeli, or in the<br />
speeches of Salisbury and Chamberlain. A<br />
hundred years hence, we venture to pre<br />
dict, school text books and learned trea<br />
tises will give more space to consumers'<br />
Co-operation, its constitution and ramifi<br />
cations, than to the rise and fall of political<br />
parties or the personalities of successive<br />
Prime Ministers."<br />
The Webbs are not to be classified among<br />
the British students of social problems who<br />
are still confused as to "the place in co<br />
operation" of the syndicalist producers<br />
groups and the "self-governing workshop."<br />
They distinctly assert that by the Co-oper<br />
ative Movement they mean "exclusively the<br />
association of consumers for the purpose<br />
of superseding the capitalist profitmaker<br />
in the conduct of industries and services."<br />
British Co-operators need to get this idea<br />
well established, because some are still<br />
under the spell of confusion which came<br />
down from Owen, Neale, Holyoake and<br />
Williams. Such work as the W_ebbs' and<br />
that of Leonard Woolf cannot fail to make<br />
their impression upon British thought.<br />
J. P. W.<br />
<strong>CO</strong>-<strong>OPERATION</strong><br />
PUBLICATIONS<br />
OF THE<br />
Co-operative League of America<br />
HISTORICAL p«* C°PV Pe* 10(><br />
3. Story of Co-operation .................................................$ .10 $6.00<br />
7. British Co-operative Movement ........................................ .10 6.00<br />
10. A Baker and What He Baked (Belgian Movement)...................... .05<br />
38. Co-operative Consumers' Movement in the United States............... .05 4.00<br />
TECHNICAL<br />
4. Hew to Start and Run a. Rochdale Co-operative Society.................. .10 4.00<br />
5. System of Store Records and Accounts................................ .50<br />
6. A Model Constitution and By-Laws for a Co-operative Society........... .05 2.60<br />
8. Co-operative Education. Duties of Educational Committee Defined..... .10<br />
9. How to Start a. Co-operative Wholesale................................ .10<br />
27. Why Co-operative Stores Fail .............. .......................... .02 1.00<br />
2. Co-operative Store Management ...................................... .10<br />
14. How to Start and Run a Women's Guild................................ .05<br />
MISCELLANEOUS<br />
46. Producers' Co-operative Industries ................................... .10<br />
11. Control of Industry by the People Through the Co-operative Movement... .10<br />
12. Credit Union and Co-operative Store.................................. .05 1.76<br />
34. Co-operative Movement (Yiddish) .................................... .02 1.25<br />
43. Co-operative Housing ................................................. .10<br />
45. Harmonizing Co-operative Producers and Consumers.................... .03<br />
ONE-PAGE LEAFLETS<br />
(One cent each; 50 cents per 100; $2.50 per 500; $4 per 1,000)<br />
(1) Principles and Aims of the Co-operative League of America; (17) Do You Know Why You<br />
Should Be a. Co-operator; (20) Why Loyalty Is Necessary; (21) Cost and Crime of<br />
Credit; (22) A Real Co-operator; (25) Resolutions Adopted by A. F. of L.; (26) Factory<br />
Workers, Co-operatel; (28) Do You Know About Co-operation in Europe?; (40) Have<br />
You a Committee on Education and Recreation?; (44) What Is the Co-operative<br />
Movement? Miscellaneous Educational Leaflets.<br />
MONTHLY PUBLICATIONS<br />
<strong>CO</strong>-<strong>OPERATION</strong>—(In bundle lots, $7.50 per hundred). Subscription, per year......... .$1.00<br />
HOME <strong>CO</strong>-OPERATOR, 4 pages ................................................ $1 per 100<br />
INTERNATIONAL <strong>CO</strong>-OPERATIVE BULLETIN (Pub. by The I. C. A.)...... .per year, $1.50<br />
BOOKS<br />
The following books are recommended as containing the best discussions of the modern<br />
Co-operative Movement. They made be ordered through The League:<br />
Bubnoff, J. B.: The Co-operative Movement in Russia, 1917.......................... .$1.25<br />
Faber, Harald: Co-operation in Danish Agriculture, 1918.............................. 2.75<br />
Flanagan, J. A.: Wholesale Co-operation in Scotland, 1920............................ 2.00<br />
Gebhard, Hannes: Co-operation in Finland, 1916...................................... 2.00<br />
Gide, C.: Consumers' Co-operative Societies, 1921...................................... 2.50<br />
Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, $2.00; paper<br />
bound ........................................................................... .60<br />
History of Co-operation in the United States. Vol VI, John Hopkins University Studies,<br />
1888 ...............................................................................4.00<br />
Holyoake, George Jacob: The History of Co-operation, 1908............................ 2.00<br />
Holyoake, George Jacob: The History of the Rochdale Pioneers........................ 2.00<br />
Howe, Fred C.: Denmark, a Co-operative Commonwealth, 1921.......................... 2.50<br />
Maxwell, Wm.: History of Co-operation in Scotland, 1910.............................. 2.00<br />
Nicholson, Isa: Our Story ............................................................ .25<br />
Powell, G. Harold: Co-operation in Agriculture. Macmillan ........................... 1.50<br />
Redfern, Percy: The Story of the C. W. S............................................. 2.00<br />
Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918....................... 2.50<br />
Smith-Gordon: Co-operation in Many Lands, 1920...................................... 2.50<br />
Sonnichsen, Albert: Consumers' Co-operation, 1919. Cloth bound, $1.75; paper bound... .75<br />
Stolinsky, A.: The Co-operative Movement. In Yiddish................................ 1.00<br />
Webb, B. and S.: The Consumers' Co-operative Movement, 1921....................... 2.00<br />
Webb, Catherine: Industrial Co-operation, 1917 ...................................... 1.50<br />
Woolf, Leonard: Co-operation and the Future of Industry............................. 2.00<br />
Woolf, L.: Socialism and Co-operation................................................ 2.00<br />
"The Co-operative Consumer" and "Co-operation," Vols. I (1914-15), II (1916), III (1917),<br />
IV (1918), V (1919), VI (1920), VII (1921)........................................ 1.25<br />
Transactions of Second American Co-operative Convention, 1920....................... 1.00<br />
(Ten cents postage should be added for books which cost more than $2.00, and five cents<br />
for the smaller books.)
TOE <strong>CO</strong>-OPERATIVE LEAGUE OF AMERICA<br />
(Member of The International Co-operative Allinace)<br />
Executive Office: 2 West 13th Street, New York<br />
An educational organization for teaching the history, principles, methods and aims of the<br />
Co-operative Movement and for the promotion of Co-operation in the United States.<br />
Join the League and thus help promote the education work of the Co-opera<br />
tive Movement. Individual Membership, 1.00 a year.<br />
Subscribe for <strong>CO</strong>-<strong>OPERATION</strong><br />
Formerly the "Co-operative Consumer." The Monthly Magazine of The League.<br />
This Journal is Not Published for Front<br />
Keep in touch with the Movement, $1.00 a year.<br />
Co-operative Central Exchange<br />
Wholesale Grocers and Jobbers,<br />
Bakers<br />
We supply goods to Co-operative Societies ONLY<br />
We are owned and controlled by Co-operative<br />
Societies.<br />
We are organized to enable Co-operative Societies<br />
to do collectively what they cannot do indi<br />
vidually.<br />
Co-operative Central Exchange<br />
Offices, Warehouses and Plant:<br />
Winter Street and Ogden Ave.,<br />
SUPERIOR, WIS.<br />
Co-operators' Ltd. Mutual Fire Insurance Co.<br />
Is now writing Insurance in State of Wisconsin.<br />
The Canadian Co-operator<br />
Brantford, Ontario,<br />
Canada<br />
The organ of the Canadian Co-opera<br />
tive Movement* owned by and con<br />
ducted under the auspices of The<br />
Co-operative Union of Canada.<br />
Published monthly; 75c per annum<br />
MOVING PICTURES<br />
and<br />
Stereopticon Lectures<br />
may be rented from<br />
<strong>CO</strong>-OPERATIVE LEAGUE OF ABIERICA<br />
2 West 13th St., New York City<br />
1. "Some Examples of English Co-operation."<br />
Moving pictures of factory processes (two<br />
reels) ............................... .$5.00<br />
2. "Coperation in the United States."<br />
With 63 Stereopticon views ........... .$3.00<br />
3. "The Co-operative Momevent in Russia."<br />
With 36 colored Stereopticon views... .$3.00<br />
Co-operation in Scotland<br />
In no part of the world is Co-operation further<br />
developed, or more successfully practised than in<br />
Scotland. If you wish to keep in touch, read<br />
"The Scottish Co-operator"<br />
(Published Weekly)<br />
Subscription: Year 12 sh.; half-year, 6 sh.<br />
Address, U S Paisely Road,<br />
Glasgow, Scotland<br />
THE PRODUCER<br />
Issued Monthly Price 3d.<br />
If you want to keep in touch with<br />
business, organization, administra<br />
tive affairs, and problems of the<br />
British Co-operative Movement,<br />
read THE PRODUCER.<br />
Published by<br />
Co-operative Wholesale Society, Inc.<br />
1 Balloon Street, Manchester.<br />
Post free 4 sh. 6d. a year.<br />
The Trade and Technical Organ of British<br />
Co-operation.<br />
THE HOME <strong>CO</strong>-OPERATOR<br />
A four-page magazine for<br />
use in co-operative societies.<br />
Issued monthly, in bundles, $1 per hundred.<br />
Published by<br />
The Co-operative League<br />
Write to the Managing Editor, Albert Son-<br />
nichsen, Willimatic, Conn.<br />
A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in vol<br />
untary organization, produce and distribute for their own use the things they need<br />
Published monthly by the Co-operative League, 2 West Thirteenth Street, New York City.<br />
J. P. Warbasse, Editor. Price, $1.00 a year. Entered as second class matter, December 19,<br />
1917, at the Post Office at New York, N. Y., under ,the Act of March 3, 1879.<br />
Vol. <strong>VIII</strong>, No. 3 MARCH, 1822 10 Cents<br />
GOVERNMENT LOANS TO <strong>CO</strong><br />
OPERATIVES<br />
The chief concern of Governments<br />
these days is to keep themselves alive.<br />
The people are growing restless un<br />
der the profiteering which they feel<br />
government in some way protects.<br />
The discontent of the masses is not<br />
to be treated lightly. England deals<br />
with it by paying full unemployment<br />
benefits. France treats the problem<br />
by maintaining the biggest army in<br />
the world. Germany pays unemploy<br />
ment benefits, but does most by pro<br />
viding employment; loans are made<br />
t o co-operative societies i n large<br />
amounts; and unemployment is much<br />
less than in the allied countries.<br />
In German towns and cities the<br />
housing shortage is met by building<br />
houses. In the United States it is<br />
met by talk on the part of politicians<br />
and profiteering on the part of land<br />
lords and builders. German co-opera<br />
tive societies are granted loans by the<br />
government, the district and the mun<br />
icipality up to 60 or 80 per cent of<br />
the value of the property. These loans<br />
are made for twenty years without<br />
interest, provided that the property<br />
is occupied by the owners and not<br />
rented or sold for profit. The only<br />
people who can comply with these re<br />
quirements are the Co-operators, so<br />
they are doing the building.<br />
VITAL ISSUES<br />
The British government in India<br />
made loans to small co-operative<br />
banks.<br />
The Italian government -and the<br />
French government from time to<br />
time have made loans to co-opera<br />
tive consumers' distributive societies<br />
when public distress has been espe<br />
cially bad. The time has come when<br />
we should be thinking about these<br />
things in the United States. We have<br />
unemployment, growing discontent, a<br />
lack of houses, and big finance in con<br />
trol of the money and credit of the<br />
country. Why wait longer? The<br />
government is subsidizing the rail<br />
roads in cold cash to the tune of $600,-<br />
000,000. Not many years ago the<br />
Government gave the railroadis an<br />
area of land equal in size to New Eng<br />
land. Most of them now are on the<br />
verge of bankruptcy and loaded to<br />
the gunnels with watered stock. All<br />
;his is just a temporary present to<br />
-he stockholders. The roads will run<br />
down again and the Government will<br />
take them over again, just as sure as<br />
cars are run for profits. Now if these<br />
stockholders are such pets of the<br />
government, why would it not be just<br />
as good to subsidize the plain people<br />
a little?<br />
We have the Federal Loan Act.. It<br />
was supposed to be for the people.<br />
But it is hog-tied, downed, and brand<br />
ed with the seal and sign of Wall<br />
1
38 <strong>CO</strong>-<strong>OPERATION</strong><br />
Street. The farmers, of course, can<br />
get something out of it; but when we<br />
think of what such a measure might<br />
do, it is pathetic to witness the pov<br />
erty of service it renders the people.<br />
This Federal Loan Act should be am<br />
plified so as to provide credit to co<br />
operative societies.<br />
Such loans to co-operative societies<br />
should be protected by supervision<br />
and guarantees that the societies are<br />
not run for profit. That means that<br />
they must be bona fide co-operatives.<br />
And just there is the difficulty. We<br />
have to explain and teach—patiently<br />
and with long-suffering—just what<br />
Co-operation means, and that it is pos<br />
sible for people to do things for them<br />
selves without the purpose of making<br />
profit out of somebody else. Legisla<br />
tors can be made to understand, if one<br />
but have the patience of a teacher.<br />
Along with such provisions should<br />
go acts providing respectively for the<br />
organization of national co-operative<br />
banks, distributive societies, and<br />
building societies. Government, state<br />
and municipal loans to such organ<br />
izations would give more relief than<br />
subsidies to enterprises that are first<br />
and last money-making schemes, the<br />
.social value of which is secondary to<br />
profits.<br />
PROFITS, SALES AND TAXES<br />
In Europe the hard-up govern<br />
ments are attempting to tax the co<br />
operative societies the same as they<br />
tax the profiteers. In this country<br />
we must prepare for the same thing.<br />
The words "profits" and "dividends"<br />
should be excluded from our co-opera<br />
tive language as far as possible. They<br />
are proving to be very expensive for<br />
the European Co-operators. W e<br />
should say "surplus-savings" and<br />
"savings-returns" instead.<br />
Now we speak also of sales. Sales<br />
will be taxed in the United States be<br />
fore many years have passed. The<br />
Government will soon be resorting to<br />
every expedient of taxation possible.<br />
"Sales" is a dangerous word. Co<br />
operative societies buy goods for<br />
their members, but they do not sell to<br />
their members. The Co-operators put<br />
their money together in order to buy<br />
together at wholesale a larger quan<br />
tity of goods than any one of them<br />
alone could buy. Sometimes they<br />
stop with just one purchase, like a<br />
house. Sometimes a group of people<br />
make only one purchase of something<br />
like sewing machines or coal or a car<br />
load of potatoes or groceries. They<br />
distribute among themselves what<br />
they have bought and the transaction<br />
is closed. If each puts in twenty-five<br />
dollars and a group of people buy<br />
$5,000 worth of coal, and they divide<br />
the coal equally among themselves<br />
they should talk only of buying and<br />
distributing coal and not of selling<br />
coal. That is the co-operative prin<br />
ciple. When a family buys potatoes<br />
and every member of the family is<br />
a wage earner and contributes equally<br />
with the others toward the purchase<br />
of the potatoes, they do not sell the<br />
potatoes when they come on the table.<br />
They buy, distribute and consume.<br />
But we have become so steeped<br />
with money-making psychology and<br />
lingo, that we shall find the 200 peo<br />
ple who bought the coal boasting<br />
about town that, "We sold $5,000<br />
worth of coal right among our own<br />
members." This same habit of<br />
thought .should prompt them to say<br />
at the table, "We were all very hun<br />
gry and our sales of potatoes at din<br />
ner today ran up to two potatoes<br />
apiece." When the husband at the<br />
table, instead of saying, "Please pass<br />
me the bread," says, "I want to buy<br />
another slice of bread," the victory<br />
of the profit psychology is won and<br />
the end of the human race is in sight.<br />
In our ordinary co-operative .so<br />
ciety, running a store, the people put<br />
in their money and buy a stock of<br />
goods for themselves. But they do<br />
not propose to stop with distributing<br />
just these goods. They propose to re<br />
peat the process. As the goods are<br />
distributed among the people who<br />
own them they aim to replenish the<br />
stock and keep on buying and distri<br />
buting to themselves indefinitely. In<br />
order to do this they must constantly<br />
be putting in money into their com<br />
mon fund. This is done in the fol<br />
lowing manner: Each member has a<br />
credit at the store in his share capi<br />
tal ; he has already bought the goods;<br />
but when he goes to the store and<br />
takes out a package of goods he puts<br />
back into the common fund enough<br />
money to pay for another package<br />
similar to that package and a little<br />
more in addition. The money he<br />
hands to the manager is his share of<br />
the next pool, to go towards buying<br />
more goods in common with the<br />
money of all the other members. His<br />
society does not sell goods to him; it<br />
buys goods for him. The co-operative<br />
store is not a selling business; it is a<br />
buying and distributing business.<br />
Confusion arises about this, be<br />
cause we Co-operators use the same<br />
methods and machinery and employ<br />
the same language as the traders do.<br />
We make our store look the same as<br />
theirs, and our clerks talk the same.<br />
We also introduce the complication of<br />
selling to the non-member. We do<br />
actually sell to him, and we do actu<br />
ally make profit from him. For this<br />
reason our business with non-mem<br />
bers should be kept separately and<br />
accounted for in our bookkeeping as<br />
something quite apart from our co<br />
operative buying and distributing<br />
among our members.<br />
We should not put down the word<br />
"sales" on the report excepting sales<br />
to non-members. "Goods distribut<br />
ed to members," "goods distributed,"<br />
"paid in by members," "paid in for<br />
goods," "received for goods" or "turn<br />
over account," are all correct terms.<br />
"Turnover" is not so good. It would<br />
be wise to invent a word to meet this<br />
need such as, "distributions" or "quit<br />
tances" in place of "sales."<br />
The United States Government, like<br />
the European governments, is stead<br />
ily moving on toward bankruptcy.<br />
We complain of the burden of taxa<br />
tion; but the burden will increase as<br />
the years go by. There will be no<br />
turnip that will not be squeezed to<br />
get blood out of it. It behooves us<br />
to think of the future and build care<br />
fully now.<br />
<strong>CO</strong>-<strong>OPERATION</strong> 39<br />
THEATRE <strong>CO</strong>LLAPSES<br />
Over 2,000 people have been killed<br />
in theatre collapses in the United<br />
States in the past ten years according<br />
to a statement in the New York<br />
Times of Jan. 30th. The Knickerbock<br />
er Theatre in Washington fell last<br />
month and killed 100 people.<br />
It fell in because it was not built<br />
for the purposes for which it was<br />
supposed to be used. One thinks of<br />
a theatre as being built for purposes<br />
of entertainment and recreation. But<br />
this theatre like most theatres in the<br />
United States was not built for those<br />
purposes. The people go on persis<br />
tently nursing the fiction that it<br />
was. The fact is, it was built and run<br />
for the purpose of making profits.<br />
Entertainment and recreation are ab<br />
solutely secondary matters. There<br />
was every reason for putting in cheap<br />
material, shoddy material and bribing<br />
inspectors to get by with it. To do<br />
otherwise would not be good business.<br />
After such an accident, there comes<br />
a good deal of pious gush and a good<br />
deal of impractical resentment. The<br />
first is exemplified by the President<br />
of the United States issuing a .state<br />
ment to the effect that, "The terrible<br />
tragedy has deeply depressed all of<br />
us and left us wondering about the<br />
revolving fates." Fates, but not a<br />
word about the cause of the tragedy<br />
or a word suggesting its prevention<br />
comes from the officials who pre<br />
side over the lives of the people<br />
under assumption that they are the<br />
"best minds." Investigation — oh,<br />
"thorough and radical investigations"<br />
have been made. More rigid in<br />
spection of buildings and punish<br />
ments for offenders will be insisted<br />
upon. This means that the cost of<br />
fixing up the next matter with the<br />
building inspector will become a lit<br />
tle more expensive. But not a step<br />
will be taken by the Washington poli<br />
ticians to prevent such occurrences by<br />
removing the cause.<br />
There are theatres and other com<br />
munity buildings that were built for<br />
service by the people who use them
40 <strong>CO</strong>-<strong>OPERATION</strong><br />
and not for profit. The President, his<br />
cabinet, the congress, and all the of<br />
ficials of Washington should make a<br />
pilgrimage to one of these shrines,<br />
that teach the religion of the coming<br />
day, and stand before it with bared<br />
heads bowed in awe and in reverence<br />
to do penance for their blindness and<br />
sloth.<br />
<strong>CO</strong>-<strong>OPERATION</strong>'S DUTY TO<br />
TRADE UNIONISTS<br />
There is much talk about the duty<br />
that the Co-operators owe to trade<br />
unionism. It is all very good. Co<br />
operative societies should, and do,<br />
prefer to hire union labor. In fact,<br />
societies stipulate that their em<br />
ployees shall be compelled to be<br />
long to the union of their particular<br />
trade.<br />
That is all right; but there is<br />
another side to the same question.<br />
The Co-operators with equal justice<br />
should remember that, where there<br />
is a co-operative store, the trade<br />
unionists should not buy at the pri<br />
vate-profit store. If co-operative<br />
employees must join the union, then<br />
unionists must join the co-operative<br />
society. Let us play the game on<br />
the level.<br />
The first National Congress of the<br />
Workingmen's Co-operative Society<br />
of Spain has just been held at Ma<br />
drid. The Spaniards are thinking<br />
about these matters, too. This con<br />
gress agreed that co-operative so<br />
cieties should employ none but<br />
trade unionists, but they reserve the<br />
right to withdraw the advantages<br />
granted to their employees if their<br />
unions do not exact the same ad<br />
vantages from private employees.<br />
This means that trade union labor<br />
shall not demand from the co-oper<br />
ative society what it cannot get<br />
from the private-profit making em<br />
ployer. This is just plain common<br />
sense. They also agreed that strikes<br />
shall not affect co-operative socie<br />
ties, but that all differences must<br />
be submitted to arbitration com<br />
mittees, whose decisions are bind<br />
ing.<br />
This mutual arrangement will<br />
have the effect of insuring that the<br />
workers in the co-operatives shall<br />
enjoy as good conditions as are pre<br />
vailing anywhere else, while at the<br />
same time it guarantees the co<br />
operatives against demands which<br />
the general conditions of the indus<br />
tries make it impossible to meet.<br />
ACCESSORY <strong>CO</strong>-<strong>OPERATION</strong><br />
Our American co-operative socie<br />
ties have been proven to stick to a<br />
standard line of business. There are<br />
a few exceptions. At the First Co<br />
operative Congress in Springfield in<br />
1918, the Danville, Illinois, society<br />
reported contracts with some ten dif<br />
ferent industries to give a discount<br />
to the members of the society of from<br />
ten to fifteen per cent. This arrange<br />
ment included, the dentist, florist, un<br />
dertaker, furniture dealer, laundry,<br />
and tailor.<br />
But beyond this sort of accessory<br />
business we find that societies may<br />
undertake the rental of utensils which<br />
are so rarely needed that most fam<br />
ilies can not afford to own them.<br />
Some of the British societies keep<br />
on hand nursing accessories which<br />
are rented to members at a very low<br />
price. These include such articles as<br />
bed pans, fountain syringes, invalids'<br />
chairs, crutches, hot water bottles,<br />
ice bags, and thermometers. We have<br />
found a number of English societies<br />
that have on hand, for rental to mem<br />
bers, telescopes, microscopes, and<br />
opera glasses.<br />
This is a field of co-operation which<br />
our societies should keep in mind.<br />
Members' meetings should discuss the<br />
things the society may thus carry in<br />
the interest of unsupplied needs.<br />
J. P. W.<br />
<strong>CO</strong>-<strong>OPERATION</strong> 41<br />
EUROPEAN IMPRESSIONS<br />
<strong>CO</strong>-<strong>OPERATION</strong> IN ENGLAND AND WALES<br />
The Co-operative Movement really<br />
did begin in Great Britain. Nobody<br />
knows when. Everybody knows that<br />
that was a good place for it to be<br />
gin. The people had suffered from<br />
the tyranny of the nobility for cen<br />
turies—a tyranny that destroyed in<br />
fants, the aged and the infirm with<br />
the same ruthless brutality as it de<br />
stroyed the strong men and women.<br />
It was not many years ago that the<br />
nobles had their own private gal<br />
lowses and prisons for unruly work<br />
ers. Then came the industrial era,<br />
and the people who owned nothing<br />
but their labor-power came under the<br />
domination of an equally cruel system<br />
at the hands of the owners of the ma<br />
chinery of production. But there is<br />
something in the human heart that<br />
prompts men to struggle on, to hun<br />
ger for justice, to want better life<br />
and life in greater abundance. Serf<br />
dom is not natural. Back through all<br />
the ages men have struggled for lib<br />
erty. They did it in Great Britain,<br />
and the Co-operative Movement is a<br />
result of this struggle.<br />
The suffering people of Great Brit<br />
ain meditated day and night over the<br />
problem: how to procure the bare es<br />
sentials of life when the largest<br />
wages that could be earned by the<br />
most arduous toil were not sufficient<br />
to provide these essentials. In the<br />
early part of the last century it was<br />
a crime, punishable by deportation,<br />
to combine to try to get more wages.<br />
But when the workers got more<br />
wages they found that they were pay<br />
ing it themselves in the increase in<br />
the cost of living. These stubborn<br />
facts gave rise to the Co-operative<br />
Movement. We know that the Fen-<br />
wick Weavers Society existed in 1769<br />
and the Govan Victualling Society<br />
was established in 1777. Then came<br />
the Bridgeton Victualling Society in<br />
1800 which is still in existence. In<br />
1812 the Lennoxtown Friendly Vic<br />
By J. P. WARBASSE<br />
tualling Society was formed and still<br />
exists. All of these societies were<br />
near Glasgow, Scotland. In that same<br />
district between 1800 and 1815 a<br />
number of co-operative bakeries were<br />
organized. Following these, sporadic<br />
societies began to spring up in other<br />
industrial centers. The Larkhill Vic<br />
tualling Society, Scotland, organized<br />
in 1821 and still flourishing, was one<br />
of these.<br />
In the course of time, the weavers<br />
of Rochdale, England, knowing of the<br />
success of co-operative societies in<br />
Scotland, started their society in<br />
1844. They took the good principles<br />
which time had proved and formu<br />
lated the methods which best made<br />
for success. They did not originate<br />
the Movement but they standardized<br />
it, and as a result of their standard<br />
ization it has gone on to spread out<br />
over the world. But if we seek a<br />
Garden of Eden from which sprang<br />
the race of Co-operators, history<br />
must turn back to the Glasgow dis<br />
trict of Scotland.<br />
London is now the business center<br />
of the world; and in London one finds<br />
the headquarters of the Internation<br />
al Co-operative Alliance. The Brit-<br />
tish Co-operative Union also has an<br />
office in London. The British Co<br />
operative Wholesale Society has<br />
there one of its great centers of busi<br />
ness and production. The offices and<br />
warehouses on Leman Street, the<br />
flour mill, soap factory, preserve and<br />
other productive works at Silverton<br />
seem like old and permanently fixed<br />
enterprises. These are the huge ex<br />
pressions of Co-operation.<br />
London has several distributive so<br />
cieties. The total membership of the<br />
three big consumers societies is close<br />
to 300,000. It is no longer true that<br />
Co-operation can not thrive in a big<br />
city. Information concerning the<br />
Royal Arsenal Society of Woolwich<br />
was published in the February num-
42 <strong>CO</strong>-<strong>OPERATION</strong><br />
ber of <strong>CO</strong>-<strong>OPERATION</strong> by its first Sec<br />
retary, W. Rose, now living in the<br />
United States. In September last, in<br />
company with two of the directors,<br />
we drove around in the society's auto<br />
mobile and visited its various prem<br />
ises. It is in the poorest section of<br />
London, surely the most unbeautiful,<br />
but it is showing the people the way<br />
to economic independence. Its stores<br />
are clean and attractive. Among its<br />
industries are a bakery, jam and pre<br />
serve factory and a creamery which<br />
distributes milk to the members. It<br />
does a large banking business. It<br />
sells practically everything its mem<br />
bers use. It owns many dwelling<br />
houses, a twenty acre recreation park<br />
and a country house with twenty<br />
more acres of land about it. This lat<br />
ter very beautiful estate is used as a<br />
vacation place for the members.<br />
This society has a paid full-time edu<br />
cational director and appropriates<br />
$20,000 a year to co-operative educa<br />
tion. When we were in Holland we<br />
met fifty of their members making a<br />
study tour of that country. Next<br />
summer a party of their members<br />
are going to Germany. As the two<br />
directors, who had gone about with<br />
us, drove away in the limousine<br />
owned by the society, it was most<br />
comforting to know that these men<br />
from the ranks of labor now were in<br />
a position to enjoy the comforts of<br />
the rich by virtue of having given<br />
the best of their lives to their co<br />
operative society.<br />
We visited Letchworth village and<br />
Welwyn. These are building enter<br />
prises of large possibilities but not<br />
purely co-operative as are the build<br />
ing societies in Germany. England<br />
is backward in the field of real co<br />
operative housing.<br />
In order to see a smaller co-opera<br />
tive comunity we went to Desborough,<br />
a town of 4,000 population (about<br />
1,000 families). The membership of<br />
the co-operative society is 2,200.<br />
About 900 of the members are em<br />
ployed in the co-operative industries.<br />
The society has stores; a bakery; milk<br />
distribution; coal distribution; a farm<br />
of 4,000 acres which produces vegeta<br />
bles, poultry, fruit, wood, eggs, butter<br />
and meat. It owns also an iron mine,<br />
employing 120 of its members. It has<br />
developed housing until practically<br />
every member lives in his own house.<br />
Its meeting hall is the common meet<br />
ing room of the town. Desborough<br />
has also a corset factory of the Co<br />
operative Wholesale Society and a<br />
producers' -shoe factory. The vast<br />
majority of people work, spend and<br />
live in a co-operative society. In 1914<br />
the society bought outright-the neigh<br />
boring village of Harrington—'lands,<br />
houses, everything, including the<br />
church and living and the right to<br />
dictate the particular theology that<br />
should be preached. Private business<br />
in Desborough plays a small role.<br />
Then we went to Kittering which<br />
has 30,000 population (7,000 fam<br />
ilies), and a co-operative society<br />
with 12,500 members. The reason for<br />
the large membership of this society<br />
is that some families have several<br />
members. The law in Great Britain<br />
permits a member to have not more<br />
than $1,000 (200 pounds) in a co<br />
operative society. The members like<br />
to leave their dividends in the society;<br />
when a member's dividends bring his<br />
capital up to $1,000, he has his wife<br />
join; and when she has $1,000 to her<br />
credit, then they begin to have the<br />
children join. Still this does not ab<br />
sorb all of the money at Kittering so<br />
they started a "Penny Bank." The<br />
law permits children or any one to<br />
deposit in this up to $100 (20<br />
pounds. Some families have every<br />
member of the family in this bank.<br />
Some are made members the day they<br />
are born. This bank has 10,000 de<br />
positors. When they get to be six<br />
teen years old they may join the so<br />
ciety and put in $1,000. Thus the<br />
bank supplies the society with funds<br />
and the society members have a place<br />
to deposit their surplus in the names<br />
of their children. The bank pays 4<br />
per cent interest; but many people<br />
draw their money out of the com<br />
mercial savings bank which pays 5<br />
per cent to put it in the co-operative<br />
bank.<br />
This Kittering society does a yearly<br />
business of $5,000,000 and has paid a<br />
10 per cent dividend regularly for 30<br />
years. Its share capital amounts to<br />
$2,000,000. It has $1,000,000 invest<br />
ed in the C. W. S. In 1901 the society<br />
paid $50,000 for a tract of land and<br />
built 180 houses. Since that, it has<br />
continued to maintain a building de<br />
partment and has in constant employ<br />
70 building workers. These men are<br />
required for repair work, remodelling<br />
and new construction among its<br />
many buildings. New members are<br />
joining at the rate of 1,000 a year. It<br />
owns a farm of 78 acres. It kills its<br />
own meat in its own slaughter house.<br />
Its educational committee has some<br />
educational function every two weeks.<br />
Its bakery produces most of the bread<br />
in the town. So substantial is the<br />
surplus of the society that the officers<br />
rejoice in the fact that the members<br />
have drawn out $500,000 in cash dur<br />
ing the past year on account of hard<br />
times and unemployment without<br />
jeopardizing the society. It shows<br />
that the members have put in money<br />
against a rainy day and when the<br />
rainy day comes the money is there to<br />
serve them.<br />
I have cited these last two societies<br />
because they show what is going on<br />
in Great Britain—the steady en<br />
croachment of Co-operation upon the<br />
field of private business and the<br />
steady increase in co-operative activi<br />
ties in the lives of the people. Long<br />
Buckby and many other societies re<br />
present the major portion of the pop<br />
ulation of their communitieiS. In some<br />
parts of Belgium they speak of the<br />
point of "co-operative saturation" as<br />
having been reached, but this point<br />
has not yet been reached in any part<br />
of Great Britain.<br />
Leaving Kittering, we went to Man<br />
chester, "the cradle of Co-operation."<br />
The British Co-operative Wholesale<br />
Society is the biggest thing in Man<br />
chester. As a matter of fact, it is the<br />
most important business in the Brit<br />
ish Empire. It is the greatest thing<br />
Co-operation has produced. Its<br />
blocks of buildings in the Balloon St.<br />
district are at least imposing. The to<br />
<strong>CO</strong>-<strong>OPERATION</strong> 43<br />
bacco works in Manchester, the flour<br />
mills on the ship canal, the .soap<br />
works and factory at Irlam, the bis<br />
cuit and confectionery factories at<br />
Crumpsall, the preserve works at<br />
Middleton, which we visited, all tes<br />
tify to the ability of the British Co-<br />
operators to do things on a big scale.<br />
Britain is dotted with the factories<br />
and warehouses of the C. W. S. which<br />
produce most everything from candy<br />
to automobiles. But one criticism can<br />
be offered: it needs younger blood.<br />
Younger men would be prone to visit<br />
other factories in other countries and<br />
discover and adopt new and up-to-<br />
date methods. The C. W. S. is suffer<br />
ing from the disadvantage of having<br />
attained to a success which satisfies<br />
the majority of its directors. Yet<br />
any criticism of this institution must<br />
yield to the fact that it is the most<br />
important and the most successful<br />
commercial enterprise in the world.<br />
It is the organization around which<br />
revolves the best hopes of the work<br />
ing millions of Great Britain.<br />
We visited also the works of the<br />
Co-operative Printing Society, the C.<br />
W. S. printing house, and the offices<br />
of the National Union of Distributive<br />
and Allied Workers.<br />
Near the Balloon Street center is<br />
Holyoke House, the educational cen<br />
ter of Great Britain. Here is a beau<br />
tiful building which stands apart like<br />
a shining star in the darkness. Man<br />
chester is dirty, gloomy and unbeau<br />
tiful. The people live mostly in the<br />
presence of architectural ugliness.<br />
Poverty and squalor are conspicuous.<br />
The wonder is that so many men and<br />
women of high ideals and love of<br />
beauty grow up in such an atmo<br />
sphere. It is a testimony to the ster<br />
ling and inherent virtue of the Brit<br />
ish character. Here stands Holyoke<br />
House, the headquarters of the Brit<br />
ish Co-operative Union, like a rich<br />
diadem shedding its radiance abroad<br />
not only throughout Britain but to<br />
every corner of the world. Here are<br />
the headquarters of the educational<br />
department, the co-operative school<br />
movement, the library and the publi<br />
cations. Would that The Co-operative
44 <strong>CO</strong>-<strong>OPERATION</strong><br />
League in the United States might<br />
have such a home as this. Some day<br />
we shall. Education is worthy of it.<br />
Across the desolate waste, known<br />
as the Lancashire mill district, we<br />
motored in a C. W. S. automobile to<br />
Rochdale. The original Toadlane<br />
store of the Pioneers is occupied by<br />
a bird merchant who sells canary<br />
birds and other captive creatures. He<br />
told me that the spirit of the pioneers<br />
was gone and had been supplanted by<br />
the "dividend hunters." However,<br />
the old society still thrives. It has<br />
26,000 members and is the biggest<br />
business in Rochdale—$5,000,000 a<br />
year. Another society has 15,000.<br />
These two societies should be united<br />
in one; that would give a membership<br />
of 33,000, a larger number than Roch<br />
dale has families. The society should<br />
buy the old Toad Lane building; if it<br />
does not, then the British Union or<br />
the Wholesale should. The bird deal<br />
er is a profanity of a sacred temple.<br />
The Cardiff Co-operative Society<br />
which we visited is the same sound<br />
organization as is to be found in other<br />
British cities. The best and biggest<br />
stores, good goods, and a steadily in<br />
creasing membership are the char<br />
acteristics. This society is under the<br />
wing of the C. W. S. which has in<br />
Cardiff a great warehouse and office<br />
building which is by far the finest<br />
commercial building in Wales. It was<br />
built too big, in order to provide for<br />
future expansion; but now it is too<br />
crowded, and the C. W. S. is planning<br />
an addition on its adjacent grounds.<br />
At the British Trade Union Congress<br />
which we attended in Cardiff, Co<br />
operation occupied a considerable part<br />
of the agenda. I talked with some of<br />
the labor leaders, all of whom are<br />
keenly interested in our American<br />
problems. Robert Smilie showed a<br />
remarkable and sympathetic knowl<br />
edge and interest in our Co-opera<br />
tive Movement among the mine<br />
workers.<br />
At Southampton, we visited the<br />
Southampton Society. It has good<br />
stores and a live educational com<br />
mittee. This was the second time in<br />
ten years that American Co-operators<br />
had called at the office of the society.<br />
Some years ago two Americans had<br />
called who were organizing "co-opera<br />
tive" stores in the United States, un<br />
der a plan whereby the profits of the<br />
business went to the two organizers.<br />
This is the far famed "American me<br />
thod."<br />
It was most gratifying to find that<br />
in England the work of The Co-opera<br />
tive League had made the British<br />
Co-operators acquainted with the<br />
American Movement. The British<br />
leaders have a pretty clear idea of our<br />
problems, our accomplishments and<br />
our deficiencies; and they stand ready<br />
to give us every assistance in their<br />
power.<br />
CATHOLICS AND THE <strong>CO</strong>-OPERATIVE<br />
MOVEMENT<br />
By R. A. McGOWAN<br />
National Catholic Welfare Council, Washington, D. C.<br />
The Co-operative Movement is di<br />
vided in continental Europe, and the<br />
chief division is between Catholic and<br />
non-Catholic associations and federa<br />
tions. This is true also of labor un<br />
ions and even of political parties. Re<br />
gardless of opinions about the reasons<br />
offered for such a division abroad, it<br />
is agreed on all sides in the United<br />
States that it would be a calamity for<br />
any such situation to arise here. Nei<br />
ther the Co-operative Movement nor<br />
the labor union movement is divided<br />
on religious grounds and it is to be<br />
hoped that no such division becomes<br />
necessary. The place of the Catholic<br />
Co-operator in the United States is in<br />
the existing organizations, working<br />
as best he can to make them success<br />
ful, and trying as best he can to get<br />
others to join the Movement.<br />
It would be a mistake, however, to<br />
think that there are not good reasons<br />
for the establishment of separate<br />
<strong>CO</strong>-<strong>OPERATION</strong><br />
Catholic co-operative societies and sumers' Co-operative Movement, he<br />
federations in continental Europe. favors other sorts of Co-operation too.<br />
Thus far from the scene it is hard for Where the Movement is burdened<br />
us to grasp the reasons and equally with Socialist propaganda, it is<br />
hard, at times, to see their import normal to expect Catholics to form<br />
ance. But the reasons stand and are their own co-operative societies and<br />
of such weight as to compel adher federations, even though they favor<br />
ence among Catholics in several of the basic principles of such existing<br />
the continental countries.<br />
organizations as the Rochdale con<br />
One reason of grave importance is<br />
sumers' societies.<br />
that many of the co-operative socie There is another reason which nonties<br />
of Europe have been started or Catholics sometimes find hard to un<br />
are used as adjuncts of the socialist derstand. This is the importance of<br />
parties, and are employed for social religious motives, and religious prin<br />
ist propaganda. Since Catholics are ciples of justice and brotherly love.<br />
opposed to Socialism, they have been The economics of the Middle Ages are<br />
compelled to start co-operative socie a case in point. The guild system was<br />
ties of their own if they wished to permeated with religion—not merely<br />
join at all in the Co-operative Move with religious observances, but with<br />
ment. The same influence has af religious principles of buying and<br />
fected the labor union movement, and selling and working. Interest-taking<br />
has brought about the establishment was forbidden on grounds of re<br />
of Catholic labor unions.<br />
ligion. The idea of the "just price"<br />
was a religious teaching. And the<br />
There is another reason which "just price" was based on the further<br />
brings us farther afield. A large<br />
number of European Co-operators<br />
religious right of a workingman to a<br />
living wage. There are religious<br />
hold Co-operation to be strictly a con teachings about economic relations<br />
sumers' movement. They either be today. The Pastoral Letter of the<br />
lieve solely in the consumers' Co-op American Hierarchy to Catholics in<br />
erative Movement or, as Socialists this country has a section on indus<br />
with the Socialist desire for common trial relations. The Bishops' Pro<br />
ownership, they favor a subsidiary gram of Social Reconstruction is an<br />
consumers' Co-operative Movement. attempt to apply principles and rules<br />
Socialist believers in consumers' co of justice and brotherly love to in<br />
operative societies are opposed to dustrial life. It therefore becomes<br />
much of an extension of co-operative natural for Catholics to start their<br />
producers' societies and are certainly own co-operative organizations and<br />
opposed to any emphasis being laid federations, especially when they are<br />
upon co-operative production. The urged on by other reasons.<br />
Catholic Co-operator does not limit<br />
Co-operation. He favors consumers' Recognizing all this, it still is true<br />
Co-operation. He favors labor Co-op that in the United States the only<br />
eration. He has even developed in thing for Catholic Co-operators to do<br />
great detail a method of establish is to join whole-heartedly with the<br />
ing co-operative production in place existing Co-operative Movement. The<br />
of capitalist production in the fac American Movement is not an ad<br />
tories. When he finds government junct of Socialism, nor are American<br />
ownership necessary, he searches for co-operative societies' propaganda<br />
methods of applying democratic man branches for the Socialist common<br />
agement and a partial division of the wealth. The Bishop's Program of<br />
returns of the government-owned Social Reconstruction specifically rec<br />
concern among those at work in it. ommends co-operative societies. Just<br />
As a Co-operator he is an eclectic. The as Catholics join the labor unions, so<br />
guilds of the Middle Ages keep haunt too they join the existing co-operative<br />
ing him.<br />
societies.<br />
And so, while he favors the con- A Catholic ought to make a good<br />
45
46 <strong>CO</strong>-<strong>OPERATION</strong><br />
Co-operator. He is of course subject<br />
to the vagaries of the times just as<br />
others, and some Catholics have an<br />
additional heritage of political and<br />
social persecution which sometimes<br />
makes co-operative action among<br />
them quite difficult. The Co-operative<br />
Movements stresses brotherhood and<br />
yet retains the strength of the indi<br />
vidual as the means of obtaining jus<br />
tice and a sound economic life. Co<br />
operative societies correspond more<br />
closely to Catholic principles than any<br />
other economic system. In joining<br />
the Co-operative Movement and in<br />
working for its success, a Catholic is<br />
working to help build up an economic<br />
system in which justice and charity<br />
will have a better chance to express<br />
themselves.<br />
THE SITUATION IN RUSSIA<br />
All reports that are available on<br />
the present condition of Co-operatives<br />
in Russia would indicate that the<br />
State has ceased to directly control<br />
or interfere with the affairs of the<br />
Co-operatives.<br />
According to Mr. A. M. Lejava, a<br />
member of the Board of "Centro-<br />
soyus" at Moscow, "Under the new<br />
economic policy freedom has been<br />
restored to the Co-operatives, and<br />
they have been entrusted by the State<br />
with the exchange of commodities be<br />
tween town and country and between<br />
the various parts of Russia. The Gov<br />
ernment at the same time decided to<br />
invite their active participation in the<br />
foreign trade of the country. Every<br />
individual at present is free to become<br />
or not to become a member of a co<br />
operative society. The conditions of<br />
membership, shareholding, etc., are<br />
fixed by the societies autonomously.<br />
The fact is, however, that practically<br />
all those who were brought into the<br />
societies under the compulsory decree<br />
now prefer to remain in the societies."<br />
The State Decree of April 7, 1921,<br />
authorized the Co-operatives to freely<br />
exchange goods, to buy up agricultur<br />
al and manufactured products for<br />
purposes of exchange. In that decree<br />
the State expressly reserved the right<br />
to appoint its own representatives on<br />
the board of consumers' societies,<br />
such representatives to have rights<br />
equal to those of the members elected<br />
by the societies. Mr. Lejava states,<br />
that: "In practice, however, the Gov<br />
ernment is not availing itself even of<br />
this limited right. There are no Gov<br />
ernment nominees on the Board of<br />
Centrosoyus, the whole of which is<br />
freely elected."<br />
The industries and enterprises<br />
formerly controlled by the Co-opera<br />
tives have been returned to them by<br />
the Government, which has also<br />
leased many enterprises formerly<br />
privately owned, to the Co-operatives.<br />
The Government prefers to grant con<br />
cessions or leases to the Co-opera<br />
tives, rather than to private firms.<br />
Co-operatives are permitted the un<br />
restricted use of their own funds, and<br />
of those granted them by the Gov<br />
ernment. State subsidies have been<br />
given to needy societies. The only<br />
restriction is that they are obliged to<br />
report the expenditure of the funds.<br />
Co-operatives are free to finance<br />
themselves through the sale of<br />
shares.<br />
It is estimated that Centrosoyus<br />
distributed amongst the population<br />
during 1921 goods to the value of<br />
$150,960,000, at the present rate of<br />
exchange.<br />
The greatest amount of freedom is<br />
enjoyed by the "Kustars," or Russian<br />
peasant co-operative industries.<br />
In short, the Government has<br />
abandoned its policy of national own<br />
ership and rigid control of the in<br />
dustries, and is now relying upon the<br />
voluntary efforts of consumers,<br />
through their co-operative societies,<br />
to conduct the industries and to<br />
carry on domestic and foreign ex<br />
change.<br />
ADVICE ,ON STORE MANAGE<br />
MENT<br />
The Successful Manager<br />
A good store manager must be able<br />
to do any part of the necessary store<br />
work. He should be agreeable to<br />
others and a good salesman. He must<br />
be honest, energetic, sincere and ef<br />
ficient. A knowledge of the business<br />
from the ground up is needed for<br />
best results. It is often found, how<br />
ever, that an earnest Co-operator pos<br />
sessing all other needed qualities soon<br />
acquires experience by hard work and<br />
study, under a competent, successful<br />
co-operative store manager which fits<br />
him for a position in charge of a<br />
store.<br />
An efficient manager should do the<br />
following:<br />
1. Systematize his work, and see<br />
that it is fairly divided among the<br />
employees, and that all are kept busy,<br />
but not rushed.<br />
2. Buy sparingly and turn stock<br />
often. If he finds he has an over<br />
stock, he must lose no time in putting<br />
on special sales.<br />
3. Know the quality of the goods,<br />
and not hesitate when asked to recom<br />
mend an article; but he should be hon<br />
est in his replies.<br />
4. Not do routine work during rush<br />
hours. He should be where the cus<br />
tomers can see him.<br />
5. Watch unceasingly for leaks.<br />
What a Manager should be:<br />
Prompt, cautious, bold, enthusi<br />
astic, determined.<br />
He should take orders from the di<br />
rectors at the Board meeting. In the<br />
store, the manager should be the boss,<br />
and officers of the society should not<br />
dictate to him or to the clerks. This<br />
should be understood from the be<br />
ginning.<br />
The Kind of Clerks that Help Co-operation<br />
It is unwise to have too many clerks.<br />
If there is not enough work to keep<br />
them busy they are apt to lose inter<br />
est. On the other hand clerks are<br />
human and should not be expected to<br />
<strong>CO</strong>-<strong>OPERATION</strong> 47<br />
PRACTICAL PROBLEMS<br />
work on a tension, or when they are<br />
ill. In starting a new clerk at work,<br />
give him average work, not the hard<br />
est, disagreeable jobs; and help him<br />
all you can. Cheap help is in the long<br />
run expensive. Do not show favorit<br />
ism, but have a general policy for all.<br />
Do not hire relatives. Be cautious<br />
about hiring relatives of officers of<br />
the society.<br />
Praise your clerks for all they do<br />
well. Pass easily over faults, for<br />
while criticism is necessary, habitual<br />
fault-finding makes a manager a nag,<br />
and good work can never be expected.<br />
Do not eternally watch or show sus<br />
picion. It is better to be frank. Be<br />
sensible in giving instruction. Give<br />
concrete examples of what a clerk is<br />
expected to do.<br />
Do not treat clerks as private busi<br />
ness treats them. Give them respon<br />
sibility. Put one in charge of fruit<br />
and vegetable department, one in<br />
complete charge of store-room, etc.,<br />
and let them make this work effective.<br />
Insist on neatness. One slovenly<br />
clerk can wreck a store.<br />
See that clerks utilize slack hours<br />
of the day by filling and straightening<br />
shelves, doing up loose sugar, tea,<br />
flour, etc., in packages, tidying up the<br />
store, etc.<br />
Pay wages fully as high as private<br />
stores pay. Do not exceed legal<br />
limitation on number of hours per<br />
week for women workers. One good,<br />
efficient woman in a co-operative<br />
store is an asset. Train her to be<br />
friendly to the women, and to attend<br />
the meetings of the Women's Guild.<br />
Do not hire a new clerk until you<br />
know his past record.<br />
There should be formed an employ<br />
ees' association. Clerks should be<br />
urged to join the union. They should<br />
know the conditions and aims of the<br />
store, and be expected to understand<br />
the co-operative principles thor<br />
oughly. They should be required to<br />
read certain co-operative literature,<br />
and attend educational meetings of<br />
the society.
48 <strong>CO</strong>-<strong>OPERATION</strong><br />
OVERSTOCKING<br />
The following excellent advice on<br />
"overstocking" is from the Nebraska<br />
Union Farmer, of January 22:<br />
Overstocking with goods has been one of<br />
the factors in causing many of our co<br />
operative stores, and elevator companies<br />
engaged in merchandising, to be short of<br />
operating capital. The other day a mem<br />
ber of the Farmers Union told us of the<br />
financial difficulties of the farmers' co-op<br />
erative store in their little village of a<br />
few score souls. A recent inventory showed<br />
a grocery stock amounting to $18,000!<br />
This farmer said he was curious to know<br />
what size of stock a grocery store should<br />
carry. Having occasion to visit the capital<br />
city, he inquired of a Lincoln grocer who<br />
does a business of about $100,000 a year<br />
what his average inventory was. The gro<br />
cer replied that he did not allow his stock<br />
to go above $8,000. Our friend was as<br />
tounded to learn that their co-operative<br />
store was carrying a stock of groceries<br />
more than twice as large as a city grocery<br />
serving several times as many patrons.<br />
A few days afterward we asked the<br />
manager of what is perhaps the most pros<br />
perous Farmers' Union store in Nebraska<br />
what size of grocery stock they carried, and<br />
he replied that they kept it down to $5,000<br />
and had everything they needed. Our<br />
Farmers Union auditors tell us that some<br />
of our stores hold their grocery stock down<br />
to $3,000.<br />
Of course, overstocking is not the only<br />
cause of capital shortage. Some of our<br />
associations did not have sufficient capital<br />
to begin with, or invested too much in<br />
buildings and equipment. Not a few have<br />
extended too much credit. But in many<br />
cases shortage of capital is due to loading<br />
up too heavily with goods.<br />
THE FATE OF READERS OF<br />
"<strong>CO</strong>-<strong>OPERATION</strong>"<br />
As representatives of the The<br />
League go about over the country<br />
there is one fact that they discover<br />
everywhere. The people who rise to<br />
the important positions in the Co-op-<br />
perative Movement are the readers of<br />
the magazine <strong>CO</strong>-<strong>OPERATION</strong>. When a<br />
person goes into a town and looks<br />
about, he finds that certain people<br />
regularly read this magazine. In the<br />
course of time if one visits the same<br />
town again he will find that the people<br />
who are guiding and furnishing the<br />
inspiration and sound leadership for<br />
the co-operative society are the read<br />
ers of <strong>CO</strong>-<strong>OPERATION</strong>, and these same<br />
people are the ones who make the<br />
best material for directors and man<br />
agers. We are calling attention to<br />
this because we have recently had<br />
brought to our attention several in<br />
stances in which the best and most<br />
successful store managers were found<br />
among men with this cultural co-op<br />
erative background.<br />
TRAINING MANAGERS<br />
The Executive Board of the League<br />
insists that the League's System of<br />
Store Accounting be used in every co<br />
operative store. We discover that it<br />
not only protects the members and<br />
the manager but it trains a Control<br />
Committee in store management. We<br />
have on record multiplying instances<br />
in which members of the Control<br />
Committee have been able to step in<br />
on a moment's notice and take the<br />
place of the manager when something<br />
happened to him. The latest testi<br />
mony to this value of the Accounting<br />
System is from Tucumcari, Texas:<br />
The Board decided to allow me to train<br />
a member of the Control Committee to<br />
take my place as manager. He has been<br />
on this committee since my arrival here<br />
last August, and the experience gained in<br />
that work has been so valuable to him that<br />
the rest is in a measure easy.<br />
A. W. WARINNER,<br />
Manager.<br />
Tucumacari Merc. Co-op. Co.<br />
Mr. Warinner has become an en<br />
thusiastic advocate of the Accounting<br />
System. He saved the Tucumari So<br />
ciety store with its aid, and now it<br />
provides a manager.<br />
SEEDS FOR RUSSIA<br />
A member of The League, Mrs.<br />
Mary Mardfin, is now in Russia for<br />
the purpose of distributing seeds in<br />
the farming districts that are suffer<br />
ing not only from a lack of food, but<br />
from the want of seeds to plant for<br />
the next harvest. Those of our read<br />
ers who are in a position to help are<br />
urged to forward free seeds for dis<br />
tribution by Mrs. Mardfin. Seeds<br />
and communications should be ad<br />
dressed to her at Sergei Victorovitch,<br />
Terskoy, Ryazan District, Russia; or<br />
to The League. I<br />
CREAMERY SETS STANDARDS<br />
The Franklin Co-operative Cream<br />
ery Association of Minneapolis has<br />
just issued a Year Book containing a<br />
remarkable financial report. Though<br />
the co-operative creamery began busi<br />
ness late in March, 1921, their gross<br />
sales of milk, butter, cream and other<br />
dairy products for nine months<br />
amounted to $844,063. The monthly<br />
sales are now $110,000.<br />
The net surplus-saving for the nine<br />
months of operation was $37,539. It<br />
should be remembered that hundreds<br />
of thousands of dollars in addition<br />
were saved to the consumers of Min<br />
neapolis, for the co-operative dairy is<br />
setting a severe pace for the private<br />
dealers, who have been forced to re<br />
duce the price of milk three cents a<br />
quart. A cent on every quart of<br />
milk has amounted, during the year,<br />
to over half a million dollars for the<br />
consumers of that city.<br />
Since the co-operative began doing<br />
business the quality of dairy products<br />
sold in Minneapolis has improved con<br />
siderably. Here is the milk report<br />
of the Minneapolis Health Depart<br />
ment:<br />
Average bacteria Jan.-June, 1920,<br />
56,674.<br />
Average bacteria Jan.-June, 1921,<br />
21,560<br />
Average per cent butter fat Jan.-<br />
June, 1920, 3.58.<br />
Average per cent butter fat Jan.-<br />
June, 1921, 3.69.<br />
This means less water, more nour<br />
ishment, and less dirt. The import<br />
ance to the people of this gain is in<br />
calculable. It means less sickness.<br />
The building of the co-operative is<br />
completely paid for; small balances<br />
remain unpaid on the machinery and<br />
equipment. Seventy routes are now<br />
operated, as against eighteen when<br />
the dairy was opened for business. In<br />
spite of the general wage cuts in the<br />
private dairies in Minneapolis, no re<br />
duction has been made in the pay of<br />
the workers in the co-operative, and<br />
none is contemplated.<br />
<strong>CO</strong>-<strong>OPERATION</strong> 49 1<br />
NEWS AND <strong>CO</strong>MMENT<br />
Enthusiastic and constant educa<br />
tional work is carried on by the mem<br />
bers. This is not a producer's enter<br />
prise run for the profit of the milk<br />
distributors; but it is a consumers'<br />
dairy run not for profit but for the<br />
service of all the citizens who choose<br />
to become members.<br />
RE-ORGANIZATION OF UNITED<br />
<strong>CO</strong>-OPERATIVE SOCIETY<br />
In the fall of 1919 a group of inde<br />
pendent Finnish societies, stores,<br />
bakeries and consumers milk distri<br />
buting societies in Eastern Massa<br />
chusetts amalgamated into a central<br />
organization—The United Co-opera<br />
tive Society. Each society lost its<br />
identity and became a branch of the<br />
centralized plan. A few new branches<br />
were established. They pooled their<br />
capital and their management. All<br />
the buying of goods, the bookkeeping<br />
and the financing was done by the<br />
central office at Boston. It also em<br />
ployed the managers, bought and sold<br />
property and equipment as well as<br />
carried on the education and propa<br />
ganda connected with all the societies.<br />
After two years, however, in the<br />
spring of 1921, at the annual meet<br />
ing the society voted to reorganize.<br />
The centralized plan of chain stores<br />
was given up and each society again<br />
became independent.<br />
This change of program was not<br />
due to any financial difficulties of the<br />
organization. The amount of capital<br />
originally subscribed by the societies<br />
was $56,720. At the time of reor<br />
ganization the capitalization was $84,-<br />
256. Its assets were $247,275. Its<br />
liabilities were $163,018. So it can<br />
be seen clearly that reorganization<br />
was not necessitated because of in<br />
efficiency. The members simply vot<br />
ed to return to the former method of<br />
local autonomy and independent man<br />
agement because they felt that by so<br />
doing the members could and would<br />
more fully and democratically take<br />
their part in each society's affairs.<br />
The separate societies agreed to<br />
buy goods together in the future until
50 <strong>CO</strong>-<strong>OPERATION</strong><br />
a real New England Wholesale feder<br />
ation should be formed.<br />
The method of distribution of the<br />
centralized capital was to return to<br />
each local society the amount of capi<br />
tal subscribed by the members of that<br />
locality, as new capital for their in<br />
dependent store. The new society is<br />
sued certificates to their members in<br />
place of the original certificates of<br />
share capital subscribed to the United<br />
Co-operative Society. $1,800 sub<br />
scribed as capital by members of<br />
those localities in which societies no<br />
longer exist still remains in the<br />
treasury undistributed.<br />
Thus ends another chapter in the<br />
attempt to organize and operate co<br />
operative chain stores.<br />
In the United States this experi<br />
ment of chain store co-operatives<br />
both fictitious and bona fide has now<br />
been given a pretty thorough trial.<br />
If any group could have succeeded<br />
with the method of centralization it<br />
would have been the Finnish Co-<br />
operators. They had a competent<br />
manager and an honest organization.<br />
Except for political differences they<br />
are united and harmonious.<br />
Adolph Wirkiela, who was in<br />
charge of the technical administra<br />
tion of the United Co-operative So<br />
ciety, the accounting and bookkeep<br />
ing, in commenting on the situation<br />
states that:<br />
"At the meeting of the Society it<br />
was not consciously realized by all the<br />
members that reorganization was<br />
necessary because of the need of local<br />
autonomy, but they did understand<br />
that separation was necessary. Dis<br />
satisfaction in the running of the So<br />
ciety was the chief cause for such<br />
a thought. The logical consequence<br />
of trying to realize an impossibility<br />
was not theoretically understood. It<br />
was a fact that under centralization<br />
the members of the branches were<br />
less interested in the Movement than<br />
they were as members of local so<br />
cieties, and the stores suffered to an<br />
extent to which centralized efficiency<br />
could not compensate. Nevertheless<br />
certain factors did not want to re<br />
cognize this fact."<br />
Waldemar Niemela the manager<br />
comments as follows:<br />
"As machinery for distribution of<br />
food supplies the chain stores plan,<br />
operating in a limited district, is<br />
much more efficient than the inde<br />
pendent stores, if it is well organized,<br />
financed and supported."<br />
<strong>CO</strong>NVENTION OF THE FARMERS'<br />
UNION OF NEBRASKA<br />
Over 600 delegates met at Omaha<br />
on January 10th, llth and 12th, <strong>1922</strong>,<br />
at the Ninth Annual Convention of<br />
the Farmers' Union. The crowded<br />
sessions were filled with spirited dis<br />
cussions and sharp conflict of opinion<br />
at times. However, the general out<br />
come was most satisfactory and car<br />
ried with it a final feeling of good<br />
will and a pledge for further loyal<br />
Co-operation in the future.<br />
Most of the resolutions naturally<br />
had to do with the conduct of the<br />
Farmers' Union marketing associa<br />
tions. The election of officers was a<br />
feature of the program. C. J. Osborn<br />
was elected president. The important<br />
resolution were those authorizing the<br />
organization of a Farmers' Union loan<br />
company, a Farmers' Union hail in<br />
surance company, and additional<br />
Farmers' Union creameries.<br />
Of particular interest to Co-opera<br />
tors was the discussion centering<br />
around the year's operation of The<br />
Farmers' Union State Exchange at<br />
Omaha. Frank Meyers, its manager,<br />
reported that the State Exchange had<br />
been organized by the Union on No<br />
vember 28th, 1918. In 1919 it sold<br />
$400,000 worth of stock under the<br />
jurisdiction of the State Union Board.<br />
Mr. Meyers reported that the Ex<br />
change had been operated with the<br />
best interest of the Farmers' Union<br />
membership in mind. In 1918 and<br />
1919 the Exchange had made money.<br />
Farmers' products were sold at peak<br />
prices and profits were skimmed off<br />
without difficulty. In 1920, however,<br />
when the slump began, the Exchange<br />
closed a year with with a loss of<br />
$109,000. In December, 1921, the<br />
loss for that year was $182,053.<br />
Farmers were not buying; and, de<br />
spite all efforts to reduce stock and<br />
overhead, the best /fealepmen could<br />
not, without loss, dispose of the large<br />
stock which the Exchange had on<br />
hand. The report showed that the<br />
present worth of the Exchange is<br />
$400,000. A vote was taken which<br />
placed the further administration of<br />
the financial difficulties in the hands<br />
of a committee composed of the<br />
boards of the State Exchange and the<br />
State Union, with power to act. The<br />
State Union occupies a building, the<br />
lease of which costs $3,000 a month.<br />
The closing sessions expressed the<br />
feeling that if the members through<br />
out the state gave their loyal patron<br />
age, the officers had full faith in the<br />
satisfactory outcome of the present<br />
crisis.<br />
The Farmers' Union is carrying on<br />
for the farmers the same educational<br />
work that The Co-operative League<br />
is performing for the consumers in<br />
general. In Nebraska, as in some<br />
twenty other states, the Farmers'<br />
Union is the best hope of Co-operation<br />
among the rural population.<br />
SOME ILLINOIS REPORTS<br />
The past year was the most suc<br />
cessful period in the history of the<br />
Bloomington Co-operative Society.<br />
Even though Bloomington was hit<br />
hard by the industrial depression, and<br />
though many promoters of the fake<br />
"Co-operative Society of America"<br />
tried to muddy the clear waters of Co<br />
operation, the energetic Co-operators<br />
made steady progress. A business of<br />
$161,000 was done during 1921,<br />
which is larger than ever before. It<br />
was decided by the membership to<br />
distribute 4 per cent savings-returns<br />
and a considerable sum remains to be<br />
placed in the reserve fund. The<br />
Bloomington Co-operative Society is<br />
affiliated with The League and with<br />
the Central States Co-operative<br />
Wholesale Society.<br />
The Villa Grove Co-operative So<br />
ciety held its thirteenth quarterly<br />
<strong>CO</strong>-<strong>OPERATION</strong> 51<br />
meeting of stockholders January 18,"<br />
1921. There were 374 tickets given<br />
out at the door to men, women and<br />
children. Every one entering being<br />
given a ticket. Ninety memberships<br />
were represented at this meeting.<br />
Certain tickets draw prizes. The hold<br />
ers of the winning tickets drew prizes<br />
as follows: a ham, 25 Ib. sugar, 25<br />
Ib. flour, quart bottle grape juice, %<br />
gallon bottle of cider, 2 cans pork and<br />
beans, % Ib. tin of tobacco and a pipe.<br />
The last four prizes were given by of<br />
ficers of the Society.<br />
Officers were elected. Dr. J. H.<br />
Greene gave an interesting address on<br />
the control of industry by the work<br />
ers. An, orchestra furnished music.<br />
A program of vocal and instrumental<br />
music and selected reading was pro<br />
vided. After the meeting and enter<br />
tainment a lunch was served consist<br />
ing of baked ham, roast pork, roast<br />
beef, boiled ham, pickles, doughnuts,<br />
cakes and coffee.<br />
THE WORKINGMAN'S <strong>CO</strong>MPANY<br />
OF CLEVELAND<br />
The Workingmen's Co-operative<br />
Company of Cleveland, Ohio, which<br />
operates six stores, has a fine record<br />
to point to for 1921. The sales for<br />
the year amounted to almost a<br />
quarter of a million dollars—to be ex<br />
act, $234,620. Of this sum, the<br />
net surplus-savings came to $6,383,<br />
which was distributed to the member<br />
ship in the form of savings-returns<br />
of 3J/2 per cent, on purchases, and<br />
3 per cent, interest on share capital.<br />
The society has a good reserve fund.<br />
The membership of one thousand,<br />
consists of Czecho-Slovak workers.<br />
The educational side of Co-operation<br />
is not neglected. On January 29th<br />
a general meeting was held at which<br />
five hundred people were present.<br />
Lantern slides were shown, and there<br />
were talks on the Co-operative Move<br />
ment.
52 <strong>CO</strong>-<strong>OPERATION</strong><br />
THE PRODUCERS' AND <strong>CO</strong>NSUM<br />
ERS' BANK OF PHILADELPHIA<br />
The Producers' and Consumers'<br />
Bank of Philadelphia opened its doors<br />
for business on the first of February,<br />
organized under a deed of trust.<br />
It is called "a co-operative bank";<br />
but to call any deed of trust "co-oper<br />
ative" is misleading, for a deed of<br />
trust violates fundamental co-opera<br />
tive principles. In the first place,<br />
shares vote instead of men. One vote<br />
for each member, irrespective of the<br />
number of shares held, is the only<br />
co-operative method. Secondly, it al<br />
lows proxy voting, which is not al<br />
lowed in the administration of truly<br />
co-operative societies. Thirdly, there<br />
is no specific use of the surplus indi<br />
cated in the by-laws. Co-operative<br />
by-laws, as well as state banking laws,<br />
definitely state the use that must be<br />
made of the surplus. Fourthly, un<br />
der the deed of trust all power is<br />
placed in the hands of the trustees.<br />
This is neither democratic, sound, nor<br />
co-operative. The deed of trust has<br />
been made use of by spurious co<br />
operative organization, such as the<br />
"Co-operative Society of America"<br />
but it has never been used by a true<br />
co-operative organization.<br />
For over a year, The Co-operative<br />
League has advised the trustees<br />
against the deed of trust method and<br />
has suggested safer forms of organi<br />
zation. Dr. Walter McCaleb, of the<br />
Engineers' Bank of Cleveland, and Dr.<br />
Frederic C. Howe have taken the<br />
same interest, and have advised<br />
against the deed of trust. These two<br />
experts and The League advised that<br />
the bank be incorporated as a state<br />
bank or trust company under the<br />
banking laws.<br />
On February 8th, The League<br />
learned the good news that the Sec<br />
retary of the Commonwealth of Penn<br />
sylvania had received the application<br />
for the incorporation of the Producers<br />
and Consumers Bank as a trust com<br />
pany. This is a well tested method<br />
of organization and puts the bank<br />
under the supervision of the state<br />
banking laws. Although the bank,<br />
even under the Pennsylvania banking<br />
laws, can not be fully co-operative,<br />
it may become a Labor Bank, serving<br />
the working people and controlled by<br />
them.<br />
We earnestly hope that the reor<br />
ganization from a deed of trust to a<br />
trust company bank will be speedily<br />
accomplished and that the working<br />
people will realize their responsibility,<br />
will exercise their control over this<br />
bank, will employ proper banking ex<br />
perts to run it efficiently, and will<br />
make this Labor, Bank a great suc<br />
cess.<br />
<strong>CO</strong>NVENTION OF NORTHERN<br />
STATES<br />
A call has been sent out by the<br />
Co-operative Central Exchange of<br />
Superior, Wisconsin, and the Union<br />
Consumers' Society of Duluth, Min<br />
nesota, to all of the societies of north<br />
ern Minnesota, Wisconsin and Michi<br />
gan to send delegates to a conference<br />
of co-operative societies to be held in<br />
the Co-operative Central Exchange<br />
Building, at Superior, on March 18,<br />
at 10 A. M. The object of the con<br />
ference is to consider:<br />
(1) The formation of a district<br />
league.<br />
(2) The best methods of spreading<br />
knowledge of Co-operation and carry<br />
ing on education within the district.<br />
(3) The question of introducing a<br />
uniform system of accounting among<br />
the societies of the district.<br />
(4) The question of training em<br />
ployees for co-operative stores.<br />
(5) The possibilities of joint buy<br />
ing among the societies of the pro<br />
posed district.<br />
It is requested that societies send<br />
ing delegates to the conference should<br />
notify Mr. John Schottes, Secretary,<br />
Union Consumers' Co-operative So<br />
ciety, 1911 W. Superior St., Duluth,<br />
Minnesota.<br />
The Co-operative League advises<br />
the societies to be represented at this<br />
conference. A large attendance and<br />
a successful meeting should be ex<br />
pected.<br />
OUR CAFETERIA INVADES<br />
WALL STREET<br />
The Wall Street financial district<br />
was invaded at the beginning of the<br />
new year by the third branch of "Our<br />
Co-operative Cafeteria," which op<br />
ened at Greenwich and Thames<br />
streets, New York City. Judging by<br />
the fact that the new branch now<br />
serves about 600 people at lunch<br />
every day, and about 75 every eve<br />
ning, the success of this invasion of<br />
the sacred precincts of capital is as<br />
sured. The following figures show<br />
the receipts by weeks since this<br />
branch was opened:<br />
First week ........ .$ 832<br />
Second week ....... 1,577<br />
Third week ........ 2,178<br />
Fourth week ....... 2,702<br />
Fifth week ........ 3,221<br />
Though there has been no con<br />
certed drive for membership thirty-<br />
one applications have been received.<br />
A considerable quantity of literature<br />
on Co-operation is given out at the<br />
cashier's desk every day.<br />
<strong>CO</strong>-OPERATIVE ELECTRICITY IN<br />
SWITZERLAND AND RUSSIA<br />
Switzerland has a number of co<br />
operative societies which supply their<br />
members with electricity. They put<br />
a wheel in a stream that comes plung<br />
ing down from the mountains. The<br />
wheel runs a dynamo. Lines are car<br />
ried to the members' houses. In this<br />
way, at a very small expense, the<br />
melting snows of the Alps are con<br />
verted by co-operative societies into<br />
light and power to run the sewing<br />
machine and the churn, but best of<br />
all, they are teaching people how to<br />
co-operate. Some of these villages<br />
have jumped from the candle to elec<br />
tric light without passing through the<br />
stage of kerosene lamp and the gas<br />
light.<br />
Now comes the word from Russia<br />
that the Barovich-Valdai Co-opera<br />
tive Society, which covers a large dis<br />
trict, is installing electric light in 250<br />
villages out of 480 villages in the dis<br />
trict. The people can do things for<br />
themselves.<br />
<strong>CO</strong>-<strong>OPERATION</strong> 53<br />
AT THE VATICAN<br />
In Italy, a unique co-operative so<br />
ciety is the one that has recently<br />
been organized in the Vatican in<br />
Rome, by the dignitaries of the Cath<br />
olic Church and the Vatican officials.<br />
It has generally been believed that<br />
the Cardinals and other dignitaries<br />
that constitute the administration of<br />
the Catholic Church in Rome enjoyed<br />
salaries that put them beyond the<br />
danger line separating them from<br />
want. But the depreciation of the<br />
currency and the high prices seri<br />
ously effect everybody's purchasing<br />
power. To meet this condition, the<br />
Church executives and their staffs<br />
there have formed a co-operative<br />
consumers' society through which<br />
provisions and other necessities are<br />
purchased at a considerable saving.<br />
FINLAND KEEPS ON THE MOVE<br />
The annual report made by the Finnish<br />
Co-operative Wholesale Society, (S. O. K.)<br />
for 1920 shows progress in spite of the<br />
split in the Finnish Movement and the<br />
difficulties laid in the way of Co-operative<br />
activity by the Government.<br />
The S. O. K. is the wholesale federation<br />
of the "neutral" co-operative societies.<br />
There are now 500 societies connected<br />
with the S. O. K., representing 1,640 stores<br />
and a membership of 181,200. During<br />
1920 the number of stores operated had in<br />
creased by 212, and 8,200 members had<br />
been won to the neutral co-operatives.<br />
The sales of the S. K. O. in 1920<br />
amounted to 324,000,000 Finnish marks,<br />
which represented an increase o_f 57 per<br />
cent over the business of the previous year.<br />
Owing to the inability to procure sufficient<br />
goods to meet the wants of the local stores,<br />
the wholesale was able to furnish only 31<br />
per cent of the goods sold by affiliated co<br />
operatives.<br />
Almost every imaginable variety of in<br />
dustrial activity is carried on by the S. O.<br />
K. It operates a factory for making over<br />
alls and underclothing, a fruit and spice<br />
packing house, a coffee roasting plant and<br />
chicory factory, a shop where bicycles,<br />
motorcycles, automobiles and typewriters<br />
are assembled and repaired, a hosiery fac<br />
tory, biscuit bakery, macaroni factory,<br />
brushworks, berry conserving works, berry<br />
gardens, match factory, flour mill, bag and<br />
envelope mill, confectionery factory, saw<br />
mill, brickworks, and other industrial estab<br />
lishments. It owns its own fleet of vessels.<br />
Recently the S. K. O. branched out into<br />
a savings bank business, which is making<br />
headway. It also maintains an infant<br />
school and supports a fire department.
54 <strong>CO</strong>-<strong>OPERATION</strong><br />
AMERICAN LABOR LEADER<br />
VISITS ITALIAN <strong>CO</strong>-OPERA<br />
TIVES<br />
I was powerfully impressed by the co<br />
operatives in Italy. I came to Reggio Emi<br />
lia to witness the Congress of the Right<br />
Wing of the Socialist Party held at the city<br />
hall of the town, Reggio Emilia having a<br />
socialist administration. The red flag was<br />
conspicious on the outside of the building<br />
and on the platform in the assembly hall.<br />
Among the delegates to that conference<br />
was Signora Argentina Altobelli, the leader<br />
of the Socialist Argicultural Co-operatives<br />
in Italy. To one familiar with the back<br />
wardness of the Italian women, the fact<br />
of an old lady being the leader of nearly<br />
a million socialist peasant Co-operators was<br />
very striking. Madame Altobelli is a re<br />
markable personality. A woman probably<br />
in the sixties, of medium height, with a<br />
very vivid and sympathetic face. She fol<br />
lowed the proceedings with keen interest<br />
and had definite opinions on all subjects<br />
that came before the congress. She was<br />
against an immediate revolution in Italy,<br />
basing her opposition principally upon the<br />
fact that the socialist peasant co-operative<br />
organization had no mroe than over 800,-<br />
000 members.<br />
On the day after the conference Eman-<br />
uelo Modigliani, at that time chairman of<br />
the socialist delegation in the Italian Par<br />
liament, Gino Baldesi, one of the secre<br />
taries of the General Confederation of La<br />
bor, and a few local comrades, took me to<br />
a socialist peasant co-operative in the<br />
neighborhood. I was told that there were<br />
quite a number of them, but that was only<br />
one of its kind that I had an opportunity<br />
to see. There are 600 peasants attached<br />
to that co-operative. A number of years<br />
ago they bought the estate from a noble<br />
man for whom they were working. By this<br />
time the estate is all or neraly all paid up.<br />
Each member of the co-operative brings all<br />
of his products into the general storehouse.<br />
The goods then become the property of<br />
the co-operative, which markets them. The<br />
co-operative also does all th ebuying for<br />
its members so that all the necessaries of<br />
life are bought at the lowest wholesale<br />
price. The members are charged on the<br />
books of the co-operative with everything<br />
furnished them by the co-operative and<br />
credited with everything furnished by them<br />
to the co-operative. Out of the proceeds<br />
all the expenses are covered, improvements<br />
made, and contributions to various labor<br />
movement activities. A part also goes to<br />
the members.<br />
I saw a number of American tractors<br />
bought by the co-operative, which the<br />
members, if left to themselves, would never<br />
have been able to buy. The Government<br />
<strong>CO</strong>RRESPONDENCE<br />
has entrusted that particular co-operative<br />
with the care of a number of war orphans,<br />
paying the institution a certain amount of<br />
money for each child.<br />
The managers of the institution showed<br />
me the bulky books containing records of<br />
the business done. The amounts ran very<br />
high. I have not the figures with me but<br />
I remember that they impressed me very<br />
strongly. I left the institution full of en<br />
thusiasm for the work done by the Italian<br />
socialist peasant -co-operatives in Italy,<br />
like the enthusiasm I felt for the work of<br />
the Italian labor movement generally.<br />
JOSEPH SCHLOSSBERG.<br />
A HARD QUESTION FOR<br />
DES MOINES<br />
The Parker bunch of Chicago ("Co-op<br />
erative Society of America") have sold in<br />
this city close to $50,000 worth of their<br />
stock in a worthless institution. The<br />
thought naturally occurs to us, if the people<br />
will put this amount of money in a thing<br />
that is bound to fail why will they not put<br />
money in our society which has a record<br />
of four and a half years of successful op<br />
eration in the interest of the people. Our<br />
board are honest men who have the Co<br />
operative Movement at heart. We know<br />
that if we could sell $50,000 worth of stock<br />
we could show results with the money.<br />
A. R. MORRIS.<br />
Des Moines, Iowa.<br />
WILDROSE, NORTH DAKOTA<br />
FARMERS' STORE<br />
Since our store has been re-organized<br />
and run eight months it has sold $30,000<br />
worth of goods, and our inventory shows<br />
a trifle better than 20 per cent, profit. The<br />
manager's salary, rent, and one extra clerk<br />
amounting to about $2,000 must be de<br />
ducted from the profit. We have four<br />
towns on this branch railroad having farm<br />
ers' stores.<br />
W. S. BECKER.<br />
Wildrose, N. Dak.<br />
"<strong>CO</strong>-<strong>OPERATION</strong>" A REAL BOON<br />
Every new number of "Co-operation" is<br />
a real boon. I look at all the Co-operative<br />
periodicals now and find none which so<br />
interestingly relates the Co-operative Move<br />
ment to other movements in the economic<br />
field as does "Co-operation." As the rea<br />
soning is simple so the information is def<br />
inite.<br />
JOHN <strong>CO</strong>LLIER.<br />
Mill Valley, California.<br />
<strong>CO</strong>-<strong>OPERATION</strong><br />
PUBLICATIONS<br />
OF THE<br />
Co-operative League of America<br />
HISTORICAL Per Copy Per 100<br />
Story of Co-operation . ................................................^ .10 $6.00<br />
British Co-operative Movement ........................................ .10 6.00<br />
A Baker and What He Baked (Belgian Movement)...................... .05<br />
Co-operative Consumers' Movement in the United States............... .05 4.00<br />
TECHNICAL<br />
How to Start and Run a Rochdale Co-operative Society.................. .10 4.00<br />
System of Store Records and Accounts.. j............................. .50<br />
A Model Constitution and By-Laws for a Co-operative Society........... .05 2.50<br />
Co-operative Education. Duties of Educational Committee Defined..... .10<br />
How to Start a Co-operative Wholesale................................ .10<br />
Why Co-operative Stores Fail .............. .......................... .02 1.00<br />
Co-operative Store Management ...................................... .10<br />
How to Start and Run a Women's Guild................................ .05<br />
MISCELLANEOUS<br />
Producers' Co-operative Industries ................................... .10<br />
Control of Industry by the People Through the Co-operative Movement... .10<br />
Credit Union and Co-operative Store.................................. .05 1.75<br />
Co-operative Movement (Yiddish) ..................................... .02 1.25<br />
Co-operative Housing ................................................. .10<br />
Harmonizing Co-operative Producers and Consumers.................... .03<br />
ONE-PAGE LEAFLETS<br />
(One cent each; 50 cents per 100; $2.50 per 500; $4 per 1,000)<br />
(1) Principles and Aims of the Co-operative League of America; (17) Do You Know Why You<br />
Should Be a Co-operator; (20) Why Loyalty Is Necessary; (21) Cost and Crime of<br />
Credit; (22) A Real Co-operator; (25) Resolutions Adopted by A. F. of L.; (26) Factory<br />
Workers, Co-operate!; (28) Do You Know About Co-operation in Europe?; (40) Hava<br />
You a Committee on Education and Recreation?; (44) What Is the Co-operativ«<br />
Movement? Miscellaneous Educational Leaflets.<br />
MONTHLY PUBLICATIONS<br />
<strong>CO</strong>-<strong>OPERATION</strong>—(In bundle lots, $7.50 per hundred). Subscription, per year......... .$1.00<br />
HOME <strong>CO</strong>-OPERATOR, 4 pages ................................................ $1 per 100<br />
INTERNATIONAL <strong>CO</strong>-OPERATIVE BULLETIN (Pub. by The I. C. A.)...... .per year, $1.50<br />
BOOKS<br />
The following books are recommended as containing the best discussions of the modern<br />
Co-operative Movement. They made be ordered through The League:<br />
Bubnoff, J. B.: The Co-operative Movement in Russia, 1917.......................... .$1.25<br />
Faber, Harald: Co-operation in Danish Agriculture, 1918.............................. 2.75<br />
Flanagan, J. A.: Wholesale Co-operation in Scotland, 1920............................ 2.00<br />
Gebhard, Hannes: Co-operation in Finland, 1916...................................... 2.00<br />
Gide, C.: Consumers' Co-operative Societies, 1921...................................... 2.50<br />
Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, $2.00; paper<br />
bound ........................................................................... .60<br />
History of Co-operation in the United States. Vol VI, John Hopkins University Studies,<br />
1888 ...............................................................................4.00<br />
Holyoake, George Jacob: The History of Co-operation, 1908............................ 2.00<br />
Holyoake, George Jacob: The History of the Rochdale Pioneers........................ 2.00<br />
Howe, Fred C.: Denmark, a Co-operative Commonwealth, 1921.......................... 2.50<br />
Maxwell, Wm.: History of Co-operation in Scotland, 1910.............................. 2.00<br />
Nicholson, Isa: Our Story ............................................................ .25<br />
Powell, G. Harold: Co-operation in Agriculture. Macmillan ........................... 1.50<br />
Redfern, Percy: The Story of the C. W. S............................................. 2.00<br />
Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918....................... 2.50<br />
Smith-Gordon: Co-operation in Many Lands, 1920...................................... 2.50<br />
Sonnichsen, Albert: Consumers' Co-operation, 1919. Cloth bound, $1.75; paper bound... .75<br />
Stolinsky, A.: The Co-operative Movement. In Yiddish................................ 1.00<br />
Webb, B. and S.: The Consumers' Co-operative Movement, 1921........................ 5.00<br />
Webb, Catherine: Industrial Co-operation, 1917 ...................................... 1.50<br />
Woolf, Leonard: Co-operation and the Future of Industry............................. 2.00<br />
Woolf, L.: Socialism and Co-operation................................................ 2.00<br />
"The Co-operative Consumer" and "Co-operation," III (1917), VI (1920), VII (1921).... 1.75<br />
Transactions of Second American Co-operative Convention, 1920....................... 1.00<br />
(Ten cents postage should be added for books which cost more than $2.00, and five cents<br />
for the smaller books.)
THE <strong>CO</strong>-OPERATIVE LEAGUE OF AMERICA<br />
(Member of The International Co-operative Allinace)<br />
Executive Office: 2 West 13th Street, New York<br />
An educational organization for teaching the history, principles, methods and aims of the<br />
Co-operative Movement and for the promotion of Co-operation in the United States.<br />
Join The League and thus help promote the educational work of the Co-opera<br />
tive Movement. Individual Membership, 1.00 a year.<br />
Subscribe for <strong>CO</strong>-<strong>OPERATION</strong><br />
Formerly the "Co-operative Consumer." The Monthly Magazine of The league.<br />
Keep in touch with the Movement, $1.00 a year.<br />
This Journal Is Not Published for Profit<br />
Co-operative Central Exchange<br />
Wholesale Grocers and Jobbers,<br />
Bakers<br />
We supply goods to Co-operative Societies ONLY<br />
We are owned and controlled by Co-operative<br />
Societies.<br />
We are organized to enable Co-operative Societies<br />
to do collectively what they cannot do indi<br />
vidually.<br />
Co-operative Central Exchange<br />
Offices, Warehouses and Plant:<br />
Winter Street and Ogden Ave.,<br />
SUPERIOR, WIS.<br />
Co-operators' Ltd. Mutual Fire Insurance Co.<br />
is now writing insurance in State of Wisconsin.<br />
The Canadian Co-operator<br />
Brantford, Ontario,<br />
Canada<br />
The organ of the Canadian Co-opera<br />
tive Movement, owned by and con<br />
ducted under the auspices of The<br />
Co-operative Union of Canada.<br />
Published monthly; 75c per annum<br />
MOVING PICTURES<br />
and<br />
Stereopticon Lectures<br />
may be rented from<br />
<strong>CO</strong>-OPERATIVE LEAGUE OV AMERICA<br />
2 West 13th St., New York City<br />
1. "Soiie Examples of English Co-operation."<br />
Moving pictures of factory processes (two<br />
reels) ................................$5.00<br />
S. 'Co-operation in the United States."<br />
With E3 Stereopticon views ........... .$3.00<br />
3. "The Co-operative Movement in Russsia."<br />
With 36 colored Stereopticon views... .$3.00<br />
Co-operation in Scotland<br />
In no part of the world is Co-operation further<br />
developed, or more successfully practised than in<br />
Scotland. If you wish to keep in touch, read<br />
"The Scottish Co-operator"<br />
(Published Weekly)<br />
Subscription: Tear 12 sh.: half-year, 6 sh.<br />
Address, 119 Paisley Road,<br />
Glasgow, Scotland<br />
THE PRODUCER<br />
Issued Monthly Price 3d.<br />
If you want to keep in touch with<br />
business, organization, administra<br />
tive affairs, and problems of the<br />
British Co-operative Movement,<br />
read THE PRODUCER.<br />
Published by<br />
Co-operative Wholesale Society, Inc.<br />
1 Balloon Street, Manchester.<br />
Post free 4 sh. 6d. a year.<br />
The Trade and Technical Organ of British<br />
Co-operation.<br />
STORE EQUIPMENT FOR SALE<br />
The Co-'operative League is in<br />
touch with several societies which de<br />
sire to dispose of surplus equipment,<br />
including cash registers, computing<br />
scales, adding machine, National ac<br />
count file, and mimeograph. Any<br />
store needing such material may be<br />
able to secure a bargain. The League<br />
will be glad to forward any commu<br />
nications to the owners of this equip<br />
ment.<br />
A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in vol<br />
untary organization, produce and distribute for their own use the things they need<br />
Published monthly by the Co-operative League, 2 West Thirteenth Street, New York City.<br />
J. P, Warbasse, Editor. Price, $1.00 a year. Entered as second class matter, December 19,<br />
1917, at the Post Office at New York, N. Y., under ,the Act of-March 3, 1879.<br />
Vol. <strong>VIII</strong>, No. 4 APRIL, <strong>1922</strong> 10 Cents<br />
HOW <strong>CO</strong>-<strong>OPERATION</strong> CAN WIN<br />
Five million of the population of<br />
Great Britain possess eleven billion<br />
pounds of the capital of the coun<br />
try. This represents all of the na<br />
tional wealth, except about 640,-<br />
000,000 pounds, possessed by the<br />
rest of the people, who number 38,-<br />
000,000. The latter are the work<br />
ers, the former are from the so-<br />
called upper and middle classes.<br />
The annual income of the 5,000,000<br />
capitalists is given as 830,000,000<br />
pounds. If the total income were<br />
from investments it would mean a<br />
yield of 8 per cent annually. Enough<br />
of this income of the wealthy and<br />
middle classes is earned by their<br />
own labor to reduce the income<br />
from investments to 6 per cent. This<br />
result is arrived at by assuming that<br />
2,000,000 of the 5,000,000 well-to-<br />
do are at work, and that their earn<br />
ings amount to 100 pounds a year.<br />
If it were assumed that their<br />
earned income were 150 pounds, the<br />
income from investments would be<br />
5 per cent. If they earn 200 pounds<br />
a year they would have 4 per cent<br />
income from property. These fig<br />
ures are from Honey's "Riches and<br />
Poverty." The low salaries earned<br />
by people of the upper and middle<br />
classes is corroborated by Mr. E. O.<br />
Greening. It is a well-known fact<br />
that before the war only a minority<br />
VITAL ISSUES<br />
of the joint stock companies in Bri<br />
tain paid dividends of 5 per cent or<br />
over. The average income from in<br />
vestments was around 4 per cent.<br />
The year 1920 was a period of<br />
bad times, but during that year the<br />
1,379 consumers' societies of the<br />
British Union did a business of 254,-<br />
000,000 pounds, and used share and<br />
loan capital of 86,553,168 pounds.<br />
The net surplus, after paying inter<br />
est on loans, salaries and all other<br />
expenses, was 25,450,000 pounds.<br />
This is a net return of 30 per cent<br />
on the capital invested. The return<br />
varies from 30 to 40 per cent. We<br />
have societies in the United States,<br />
and there are undoubtedly British<br />
societies which show 50 to 100 per<br />
cent returns on the invested capital.<br />
This means that having made his<br />
investment, the member of the co<br />
operative society has only to pat<br />
ronize his society, where he buys at<br />
fully as good an advantage as in<br />
private business, and his capital<br />
earns this large return.<br />
The Co-operative Movement thus<br />
has the power to do for labor six<br />
times more than what capitalistic<br />
investment can do for the capitalist.<br />
Let us now turn to the 640,000,000<br />
pounds of capital owned by the<br />
working class. If all the working<br />
people invested this co-operatively,<br />
on the same basis of return as their<br />
present investment of 786,000,000
56 <strong>CO</strong>-<strong>OPERATION</strong><br />
pounds, in five years every working<br />
class family would be in the same<br />
position of competence as the mid<br />
dle and upper classes. In other<br />
words, each of the working class<br />
families would have the same<br />
amount of wealth as each of the<br />
capitalist families.<br />
This, of course, is wholly a theo<br />
retical calculation, for there are<br />
many intercurrent possibilities.<br />
And, moreover, it takes a long time<br />
to educate the rest of the working<br />
people as to what is their best in<br />
terest. These figures are presented<br />
to show the possibilities of Co-oper<br />
ation from the simple investment<br />
standpoint.<br />
In the United States all the money<br />
in the country passes through the<br />
hands of the workers three times a<br />
year; they earn it and spend it all<br />
every four months. It is the spend<br />
ing of this money with profit-mak<br />
ing business that produces the cap<br />
ital that makes it possible for the<br />
non-workers to live without per<br />
forming service. It is to gain this<br />
profit from the consumers that most<br />
of the business of the world is run.<br />
Should the consumers carry on their<br />
own business and keep the profit for<br />
themselves, they could accumulate<br />
the profit for expansion of industry<br />
which now goes to the capitalist.<br />
All they need to do is to organize<br />
the co-operative sluiceway which<br />
shunts off the golden current from<br />
the pockets of private traders into<br />
their own pockets. The consumer<br />
occupies the strategic position, and<br />
he can win when he organizes his<br />
spending power.<br />
NOTHING FAILS LIKE SUCCESS<br />
We publish this month some final<br />
information on some organizations<br />
that have been called "co-opera<br />
tive." This is necessary, because<br />
many people thought they were co<br />
operative. And, because people<br />
have held this delusion, it is neces<br />
sary to give information concerning<br />
them in a co-operative magazine.<br />
Many thousands of people have sub<br />
scribed to these things in good faith.<br />
The working people have lost some<br />
$18,000,000 by them in the past<br />
three years. These facts cannot be<br />
ignored. We 'have to publish them,<br />
as much as we dislike to use our<br />
space for this purpose.<br />
It is not pleasant to harp upon<br />
this subject, but it must be done.<br />
The failure of these enterprises<br />
was inevitable, as we have always<br />
shown. Had they kept on, and con<br />
tinued to take money from the peo<br />
ple, such "success" would have in<br />
flicted continuous harm upon the<br />
Co-operative Movement, although<br />
the failure of each, one by one, has<br />
been a hard blow to the working<br />
people who trustingly invested their<br />
savings. Co-operation in the United<br />
States continues to succeed and to<br />
win its victories. The final failure<br />
of these false co-operatives is<br />
among the successes of real Co<br />
operation.<br />
BANKS LEND CREDIT<br />
Lending the people's credit is what<br />
the banking system does with the<br />
people's money. The high financiers<br />
talk much of the risks of the banking<br />
business; they assert that the stock<br />
holders, the people who finance the<br />
bank, should get the profits. There<br />
is no doubt that they do get the pro<br />
fits, but is all of this talk abut the<br />
stockholders financing the banks cor<br />
rect? At the present time in the<br />
banks of the United States for every<br />
$1.00 that the stockholders have in<br />
vested in our banks the depositors<br />
have invested $15.00. The share<br />
holders have invested in our 31,618<br />
banks a total in round figures of $2,-<br />
500,000,000; but the depositors have<br />
in these same banks $36,700,000,000.<br />
Now, the money these banks do<br />
business on and out of which they<br />
make their profits is $15.00 of the<br />
people's money to every $1.00 of the<br />
stockholders' money, yet the stock<br />
holders are the fortunate ones who<br />
get the profits. The many lenders of<br />
this vast sum of money and the many<br />
borrowers of it make possible the vast<br />
business which pours a river of pro<br />
fits into the laps of the few stockhold<br />
ers. The depositors furnish the<br />
credit, the stockholders loan it, and<br />
take the profit for themselves.<br />
The co-operative system of bank<br />
ing provides that the borrowers and<br />
the lenders are the chief factors con<br />
cerned. The figures show that they<br />
are fifteen times more of a factor<br />
than the stockholders. The co-opera<br />
tive method is simple, but above<br />
all it is just. Precisely the same prin<br />
ciple applies in banking as applies in<br />
any other business. It is possible<br />
for the people, who have credit to<br />
lend, to organize with the people who<br />
want to borrow it. They can cut out<br />
the middleman. The people can be<br />
their own bankers as well as they<br />
can be their own merchants. All that<br />
is required is the will to know how,<br />
and then to do it.<br />
RELATIVES OF DIRECTORS<br />
Co-operation can have no favor<br />
ites. Every sound society sees to it<br />
that the members are safeguarded<br />
against personal favoritism or priv<br />
ilege in any form. Many societies<br />
provide in their by-laws that the<br />
society shall not purchase gooda<br />
from a director, nor shall any di<br />
rector occupy a position in the so<br />
ciety commanding a salary.<br />
There are naturally circum<br />
stances under which exceptions<br />
must be made to this rule; but in<br />
general it is sound. The same per<br />
son cannot well be employer and<br />
employee.<br />
Employing members of the family<br />
of a director is discovered to have<br />
serious disadvantages. There have<br />
been many societies ruined because<br />
influential members of the board<br />
of directors insisted in putting their<br />
family and relatives on the pay roll.<br />
Some of these employee-relatives<br />
<strong>CO</strong>-<strong>OPERATION</strong> 57<br />
have been highly incompetent. In<br />
one society three incompetent clerks<br />
were members of the family of the<br />
president of the board. No society<br />
can survive this sort of administra<br />
tion. Some plain speaking in the<br />
board and then before the whole so<br />
ciety is essential in such cases. It<br />
should be done in a friendly and<br />
kindly way, but it should be done.<br />
Some societies are willing now to<br />
go so far as to put a section in their<br />
by-laws forbidding the employment<br />
of members of the families of di<br />
rectors. It may now and then pre<br />
vent the employment of a desirable<br />
worker, but on the whole it would<br />
go a long way toward preventing a<br />
serious abuse.<br />
Of course the remedy is to have<br />
the members of a society so well<br />
educated and so deeply interested<br />
that they will only elect directors<br />
who will be animated by the best<br />
good of the society. Directors who<br />
permit personal favoritism to influ<br />
ence them in making appointments<br />
of employees are not fit for the<br />
office and should be recalled as soon<br />
as possible. A director should have<br />
but one single standard of conduct<br />
—only the thing that is for the best<br />
good of the whole society.<br />
A GROWING HOST<br />
The 30,000,000 heads of families,<br />
who are organized in the Co-opera<br />
tive Movement in twenty-six coun<br />
tries, represent more than 120,000,-<br />
000 people. This is a great and grow<br />
ing host. It brings to the suffering<br />
world the light of a new civilization.<br />
Those who give themselves to this<br />
Movement are building upon the<br />
foundations of eternity.<br />
J. P. W.
58 <strong>CO</strong>-<strong>OPERATION</strong> <strong>CO</strong>-<strong>OPERATION</strong> 59<br />
EUROPEAN IMPRESSIONS<br />
The British Co-operative Move<br />
ment began in Scotland. The Glas<br />
gow district is the cradle of Co-op<br />
eration. For seventy-five years be<br />
fore the Rochdale Pioneers opened<br />
their store, co-operative societies had<br />
been developing in the land of oat<br />
cakes. If one will look at the sturdy<br />
faces of the Scotch Co-operators he<br />
will see determination written large.<br />
A people who are descended from an<br />
cestors who made a living out of the<br />
unfertile soil of Scotland, who sur<br />
vived its harsh climate, and who<br />
threw off the yoke of as relentless a<br />
class of nobles as ever starved their<br />
subjects, must win success. The Scots<br />
who were not made of sturdy stuff<br />
all perished long ago. I realize that<br />
one of the most hopeful things about<br />
our American movement is that we<br />
have a lot of Scotch in it.<br />
The first impressive thing that we<br />
saw in Scotland was the Scottish<br />
Co-operative Wholesale Society. It<br />
has the most imposing business build<br />
ings in the city of Glasgow. Glas<br />
gow strikes one as really more of a<br />
co-operative center than any of the<br />
big British cities. It not only has a<br />
great wholesale but big and thriving<br />
distribution societies. The show<br />
rooms of the wholesale are most<br />
attractive. The quality of the wares<br />
is good. Robert Stewart, Pres<br />
ident of the S. C. W. S. since 1908,<br />
accompanied us through the build<br />
ings in the Morrison Street section<br />
and through the factories at Shield-<br />
hall. Shieldhall is a section of Glas<br />
gow, on the Clyde, bought by the<br />
S. C. W. S. in 1887, where the whole<br />
sale has now about thirty different<br />
industries. This is the most varied<br />
complex of industrial plants to be<br />
found anywhere in the world. More<br />
than 5,000 employees are occupied in<br />
factories producing shirts, hosiery,<br />
underwear, tobacco, brushes, food,<br />
shoes, clothing, furniture, packing<br />
<strong>CO</strong>-<strong>OPERATION</strong> IN S<strong>CO</strong>TLAND<br />
By J. P. WARBASSE<br />
cases, tin boxes, and bags. A large<br />
printing and publishing plant, chem<br />
ical department, fire department, am<br />
bulance, dining room and kitchen are<br />
among the equipment.<br />
Flour mills, woolen mills, farms<br />
and other factories of great variety<br />
are to be found in many other parts<br />
of Scotland. The carting department<br />
of this organization has 200 horses<br />
and 75 automobile trucks. In 1910<br />
it did 6 per cent of its own cartage;<br />
in 1921 it did 52 per cent. It is eman<br />
cipating itself from express compan<br />
ies and railroads. Organized in 1868,<br />
its business has steadily increased,<br />
till now it amounts to $150,000,000<br />
a year. This can be said of the S. C.<br />
W. C.: it is the great wholesaling<br />
business in Scotland; in addition to<br />
volume of trade, its products are of<br />
a high grade; its factories are clean;<br />
and though its directors do not aver<br />
age young in years, the Scottish<br />
wholesale is progressive and alert.<br />
We went out to Calderwood, an es<br />
tate and farm of 1,125 acres owned<br />
by the S. C. W. S., to a Saturday<br />
afternoon picnic. On the same day<br />
we attended the children's outing of<br />
the United Co-operative Baking So<br />
ciety, as guests of the president,<br />
Alexander Buchanan. The children<br />
train all winter in their choral so<br />
cieties for the annual big concert,<br />
and as a reward for their hard work,<br />
every summer they are given a party<br />
with contests, games and prizes. This<br />
society has two brass bands and gives<br />
much attention to recreations. These<br />
organizations all keep up educational<br />
work.<br />
On Sunday we went to Paisley and<br />
found a society over sixty years old.<br />
It too has beautiful buildings, as well<br />
as enough stores to supply the town,<br />
a bakery, several dairies and a mem<br />
bership nearly as big as the total<br />
number of families in the city. It<br />
was a joyful experience to enter the<br />
central office building of this society,<br />
the largest office building in the city,<br />
and see etched in the glass of one of<br />
the office doors, the words, "Educa<br />
tional Committee." This committee<br />
carries on some education function at<br />
least once a month. In Paisley, as<br />
in many others of the Scottish socie<br />
ties, children's singing and play<br />
classes are a successful part of the<br />
educational work.<br />
I have visited many baking socie<br />
ties but none which has the unique<br />
record of The United Co-operative<br />
Baking Society. Next to the Vienna<br />
Co-operative Bakery, this is probably<br />
the largest bakery in the world. It<br />
has 120 ovens with the most modern<br />
machinery. It celebrated its half cen<br />
tury jubilee in 1919 and issued a<br />
handsome history. Briefly it is a<br />
federation of 212 Scottish co-opera<br />
tive societies with $2,500,000 share<br />
capital. It sells $8,000,000 worth of<br />
bread and cakes and makes an an<br />
nual surplus-saving of $300,000. It<br />
devotes $7,000 a year to co-operative<br />
education, carries $250,000 worth of<br />
goods in stock and has $1,500,000<br />
reserves. It uses 30,000 tons of flour<br />
a year and puts out 800 tons of<br />
breadstuffs a week. It has branch<br />
bakeries in Scotland and in Ireland.<br />
As I went through this huge estab<br />
lishment, I was impressed with the<br />
fact that Co-operation does best to<br />
begin with supplying the most simple<br />
and primitive needs, and bread is one<br />
of these; and from that point it may<br />
go on indefinitely. Bakeries have been<br />
the beginnings of many societies for<br />
more than a hundred years; they<br />
have been more universally success<br />
ful than any other co-operative en<br />
terprise; they are especially adapted<br />
to Co-operation; and accordingly it<br />
is natural that two of the greatest<br />
bread bakeries in the world are<br />
owned by the people who consume the<br />
bread.<br />
We visited also stores of several of<br />
the other Glasgow societies.<br />
The Kinning Park Society has 30,-<br />
000 members and 75 stores. The St.<br />
George Society is nearly as large.<br />
Then Glasgow has the St. Rollox, the<br />
Progress, Cowlairs, and London-Road<br />
societies.<br />
It is a great satisfaction to look<br />
down a main business thoroughfare<br />
in Glasgow and see a big sign painted<br />
on the side of a building, "Join the<br />
co-operative society nearest your<br />
home." In America such an advan<br />
tageous advertising space would be<br />
occupied by a cigarette sign.<br />
The big society of Edinburgh is<br />
St. Cuthbert's Co-operative Associa<br />
tion with some 60,000 members, with<br />
150 different establishments, carry<br />
ing on every sort of business. It<br />
dates back to 1859, and shows a<br />
steady growth.<br />
Scotland is building a wonderfully<br />
substantial movement. The Scotch<br />
are slow to act and stubborn. But<br />
they are proving that Co-operation<br />
is the way out. The only thing that<br />
holds them back is respect for estab<br />
lished privilege. The King and no<br />
bles are all beloved of the Scotch.<br />
Dear old William Maxwell, the form<br />
er President of the Scotch Whole<br />
sale, was fond of proposing toasts<br />
"to our beloved Queen." The Scotch<br />
still "dearly love a laird."<br />
Scotland does not produce enough<br />
food-stuff to feed the people; yet one-<br />
fifth of its area is used for hunting-<br />
lands for the British nobility. Think<br />
of it! Scotch Co-operators, like their<br />
English brothers, are fed from the<br />
cradle up, on the glory of the British<br />
Empire, and but vaguely realize that<br />
the things they are working for have<br />
as their natural opponent the whole<br />
British state with all of its trappings<br />
and appurtenances.<br />
When the International Co-opera<br />
tive Movement knits more closely to<br />
gether the countries of the world,<br />
these slow and steady Scots and<br />
Britons will catch the scientific meth<br />
ods and efficiency of the Germans,<br />
and the result will be victory for the<br />
people.<br />
For two months we had studied co<br />
operative societies in ten countries in<br />
Europe. Every day, all day and well<br />
into the night, for six days a week<br />
of that time we had visited societies<br />
or their members. Such an experi-
60 <strong>CO</strong>-<strong>OPERATION</strong><br />
ence inspires one with positive con-<br />
clusiveness that Co-operation can<br />
win, that it is winning, against all<br />
the forces of reaction, stupidity and<br />
chauvinism—even despite its own<br />
blunders or inefficiency. It is win<br />
ning because it is the natural and<br />
scientific method. If it does not win,<br />
the world is lost, and we may as well<br />
go back to our caves and our war<br />
fares. Co-operation must prevail.<br />
Utopians have dreamed of a so<br />
ciety in which the people produce and<br />
distribute for themselves, without<br />
the profit motive, in which business<br />
is carried on for service. The So<br />
cialists pray for it and vote for it<br />
and hope that at some remote day it<br />
may be realized. But it is here. It<br />
is a dream come true. I have beheld<br />
it and lived in it. I have seen the<br />
people in their own co-operative<br />
homes, served by their own stores<br />
and factories, protected, entertained,<br />
and educated by agencies all their<br />
own.<br />
It is said that no man can go into<br />
the future and come back and relate<br />
what he has seen. I have done it.<br />
And coming back to earth again was<br />
a great jar. But the experience has<br />
taught me that Heaven is not a myth.<br />
The Utopia is not far away. It is<br />
just up the road a bit on the sunny<br />
slopes of the Future. The path is<br />
straight and broad enough for all.<br />
We must beware of the byways that<br />
would lead us astray. We can not go<br />
alone. But if we all join hands, we<br />
can go; and we shall find the journey<br />
sweet.<br />
THE INTER<strong>CO</strong>LLEGIATE <strong>CO</strong>-OPERATIVE<br />
SOCIETY:<br />
FIRST CHAPTER AT MARQUETTE UNIVERSITY<br />
By ALBERT P. SCHIMBERG<br />
President Marquette University Chapter Intercollegiate Co-operative Society<br />
The youthful ardor of the college<br />
student has been enlisted for Co<br />
operation. A group of earnest col<br />
legians have rallied to the banner of<br />
"All for Each, Each for All," and<br />
have sent out a call to their fellow-<br />
students to join them in the move<br />
ment which they believe is at once<br />
the most ideal and the most prac<br />
tical of all the movements dealing<br />
with our social-economic problems.<br />
In Marquette University, Milwau<br />
kee, Wisconsin, in the great Middle<br />
West, "The Valley of Democracy,"<br />
Booth Tarkington calls it, there has<br />
been organized the first chapter of<br />
the Intercollegiate Co-operative So<br />
ciety. This chapter has sent out a<br />
statement of its purposes, together<br />
with an invitation to students in all<br />
American and Canadian universi<br />
ties and colleges to form chapters.<br />
It sent also suggestions, including a<br />
copy of its constitution, in the hope<br />
that its experience may be of assist<br />
ance to other collegians.<br />
Marquette University Chapter<br />
owes its inception to the resolution<br />
adopted at the Second National<br />
Convention of The Co-operative<br />
League, held at Cincinnati in No<br />
vember, 1920. Professor Joseph<br />
Reiner, author of the resolution,<br />
was made Chairman of the commit<br />
tee, and charged with carrying its<br />
provisions into effect. This he pro<br />
ceeded to do, when, in the fall of<br />
1921, he became a member of the<br />
faculty of Marquette University. He<br />
gathered a group of students inter<br />
ested in social study and explained<br />
to them the philosophy, the history,<br />
the methods and the potentialities<br />
of the Co-operative Movement. Soon<br />
afterwards the pioneer chapter of<br />
the Intercollegiate Co-operative So<br />
ciety was formed, and weekly meet<br />
ings have been held.<br />
After the chapter members had<br />
familiarized themselves somewhat<br />
more with the movement, they be<br />
came enthusiastically eager to<br />
spread the gospel of Co-operation<br />
among their fellow-students in all<br />
parts of the United States and Can<br />
ada. Nor is their ardor for Co<br />
operation bounded by the borders of<br />
their own land and the Dominion.<br />
They hope that soon their Latin-<br />
American brothers will be enlisted<br />
in collegiate Co-operation activity,<br />
and that eventually there will be a<br />
world-wide collegiate co-operative<br />
society, potent not only for the<br />
cause of Co-operation, but also, be<br />
cause the movement inculcates good<br />
will, a mighty force for peace on<br />
earth and friendliness among all<br />
peoples.<br />
The resolution adopted by the<br />
Cincinnati Convention of The Co<br />
operative League declared that "It<br />
is of great importance to the Co<br />
operative Movement that students<br />
in our colleges and universities be<br />
come acquainted with its history,<br />
principles and methods, and that<br />
they identify themselves with the<br />
Movement."<br />
Marquette University Chapter<br />
members believe that Co-operation<br />
deserves students' allegiance, be<br />
cause, as they declare in their state<br />
ment, it is "a practical ideal of the<br />
highest social and economic signifi<br />
cance," and "the most important<br />
element in the solution of our vexing<br />
social problems." They are con<br />
vinced that once acquainted with<br />
Co-operation, the earnest, social-<br />
minded students of all lands will<br />
gladly give the Movement practical<br />
interest no less than theoretical<br />
study while in college, and upon<br />
graduation will continue their ac<br />
tive interest in genuine co-operative<br />
projects. They see particular need<br />
for this in America. In Europe Co<br />
operation is widespread, and rests<br />
on firm foundations of successful<br />
years. In the New World it is still<br />
in the making, and it deserves and<br />
desires what the college man can<br />
<strong>CO</strong>-<strong>OPERATION</strong> 61<br />
give it: leadership, youthful ideal<br />
ism and ardor to supplement the<br />
wise counsel of older men, eager<br />
ness to make the benefits of Co-op<br />
eration available to many, practical<br />
knowledge with which to give as<br />
sistance and point out the wheat of<br />
genuine Co-operation from the chaff<br />
of selfish schemes.<br />
The pioneer collegiate chapter<br />
emphasizes the desirability of act<br />
ual contact with the Co-operative<br />
Movement on the part of its mem<br />
bers. It wants to carry out the<br />
provision of the Cincinnati resolu<br />
tion, which desired that college men<br />
"identify themselves with the Move<br />
ment." They want to keep close to<br />
the Movement. At their meetings<br />
they read not only excerpts from the<br />
magazine "Co-operation," the organ<br />
of The Co-operative League, and<br />
other co-operative literature, but<br />
papers resulting from personal in<br />
vestigation of groceries, bakeries,<br />
cigar factories and other co-opera<br />
tive enterprises. In no better way<br />
could they get first-hand informa<br />
tion and a clear insight into the<br />
practical methods of this ideal sys<br />
tem.<br />
A significant instance of the Mar<br />
quette University Chapter's empha<br />
sis on practicability and on keeping<br />
in close touch with the Movement,<br />
was the address before the chapter<br />
by the manager of a co-operative<br />
cigar factory. The chapter plans to<br />
invite other leading Co-operators to<br />
tell its members how they organized<br />
and how they are conducting their<br />
enterprises.<br />
The students who established the<br />
first Intercollegiate Co-operative<br />
Chapter believe that its two-fold<br />
appeal, idealism and practicability,<br />
will find a hearty response in Amer<br />
ican and Canadian and later in oth<br />
er collegiate institutions. They be<br />
lieve Co-operation will help to build<br />
a better world for the peoples of the<br />
earth, and in rearing this noble<br />
structure they wish to see all college<br />
men have a part.
62 <strong>CO</strong>-<strong>OPERATION</strong><br />
A HOME FOR THE LEAGUE AT<br />
LAST!<br />
The League is about to move into<br />
its own building! At last we have<br />
a home of pur own. If the contract<br />
ors do their duty the work will be<br />
completed and the offices of The<br />
League will be transferred to our<br />
own premises on May first.<br />
We have kept rather quiet about<br />
this. But, now, as we see the work<br />
nearing completion, we are so bub<br />
bling over with joy that we have to<br />
tell about it before we move. It is a<br />
reality. The building is a fact.<br />
For eight years the executive of<br />
fices of The League have been at 2<br />
West 13th Street, New York, in the<br />
Educational Building. Four times<br />
during that period we have had to<br />
shift our offices from one part of the<br />
building to another in order to get<br />
more room. At present The League<br />
has offices on two different floors in<br />
that building, its literature bureau<br />
and shipping department in another<br />
building four miles away and the<br />
literary editor in Connecticut. Now<br />
we shall unite our work under our<br />
own roof and no longer be at the<br />
mercy of landlords.<br />
The new building is, 167 West 12th<br />
Street, New York City. That is easy<br />
to remember. One and six make<br />
seven; the light of the sun moves<br />
toward the West; and the twelve<br />
apostles are known to all.<br />
When it was finally resolved that<br />
The League must have its own build<br />
ing, the Executive Board set about<br />
it to find one. After much search,<br />
a modest four-story private house<br />
was found, and bought. The whole<br />
house is being remodeled, and the ar<br />
chitecture completely changed. On<br />
one side of our house is the Model<br />
School which is nearly co-operative<br />
in character; on the other side is a<br />
co-operative apartment house now in<br />
process of construction. The League<br />
is a shareholder of this building so<br />
ciety, and it will become a member<br />
of The League. Across the street is<br />
OUR MOVEMENT<br />
St. Vincent's Hospital. Our house is<br />
a few steps from the 12th Street en<br />
trance of the 14th Street express sta<br />
tion of the Seventh Avenue subway.<br />
It is located between Union Square<br />
and the Greenwich Village districts<br />
on a restricted street, quiet, and very<br />
accessible.<br />
The British Union headquarters<br />
are Holyoak House, Manchester.<br />
Facing the Place Edwarde Anseele<br />
in Gent, Belgium, is "Ous Huis"<br />
(Our House). This is the head<br />
quarters of Belgian inspiration.<br />
"Our House" in New York is the<br />
center of the Co-operative Movement<br />
of the United States. To this center<br />
will gravitate the information con<br />
cerning our Movement, and from this<br />
center will radiate the information to<br />
make our Movement sound and clean.<br />
We have a long way to go. We<br />
must work patiently and fundament<br />
ally. Building a structure that will<br />
endure is the task for Our House.<br />
IN<strong>CO</strong>RPORATION OF THE <strong>CO</strong><br />
OPERATIVE LEAGUE<br />
Ever since the organization of<br />
The Co-operative League it has en<br />
deavored to become incorporated.<br />
But no state in the Union had a co<br />
operative law or a corporation law<br />
under which incorporation could be<br />
secured. This was because (1) The<br />
League is composed of societies and<br />
not of individuals; (2), it has no<br />
shares or capital; and, (3), it is<br />
an interstate organization, having<br />
members in every state, and direct<br />
ors distributed from the Atlantic to<br />
the Pacific. These are only a few<br />
of the peculiarities of The League<br />
which were not compatible with<br />
corporation laws. The law which<br />
was most nearly applicable was<br />
found in New York State.. The Ex<br />
ecutive Board went to work on this<br />
law, and after three years of labor,<br />
succeeded in obtaining amendments<br />
which made incorporation possible.<br />
The League is now incorporated.<br />
But in order to accomplish this it<br />
was necessary to make some con<br />
cessions to the law.<br />
First, The League has had to alter<br />
slightly its name. It will be called<br />
The Co-operative League, but the<br />
full legal name is The Co-operative<br />
League of the United States of<br />
America (Association Incorporat- •<br />
ed). We shall not use all of this<br />
name. The first three words suf<br />
fice.<br />
Second, It has been necessary to<br />
modify slightly the constitution of<br />
The Co-operative League of Amer<br />
ica to adapt it to the corporation<br />
law. The final amending of the<br />
constitution will take place at the<br />
Third Congress of The League, to<br />
be held in the fall of this year.<br />
In the meantime, the Board of<br />
Directors have approved it and<br />
voted that The League shall operate<br />
under the new name. Incorporation<br />
has been secured in order that the<br />
members of The League should be<br />
protected and not have to carry the<br />
hazard of individual responsibility.<br />
THE <strong>CO</strong>-OPERATIVE LEAGUE'S<br />
SCHOOL<br />
The Co-operative League will<br />
open its school with a course of ten<br />
lectures, at The League's House,<br />
167 West 12th Street, New York<br />
City, May 2, <strong>1922</strong>. The class will<br />
meet evenings at 8 o'clock.<br />
May 2<br />
1. "The Need of an Understand<br />
ing of the Co-operative Movement.<br />
Current Errors in Economic Think<br />
ing. The Multitude of Economic<br />
Programs. Principles of Co-opera<br />
tion," J. P. Warbasse.<br />
May 5<br />
2. Part 1: "Economic Conditions<br />
in the Early Nineteenth Century,<br />
Robert Owen; Rochdale; Eighty<br />
Years of Co-operation in Great Bri<br />
tain," Albert Sonnichsen. Part 2:<br />
"The British Movement Today"<br />
(with stereopticon views), Julia N.<br />
Perkins.<br />
May 9<br />
3. "Social Uses of Co-operation in<br />
Belgium; Holland; Scandinavia;<br />
<strong>CO</strong>-<strong>OPERATION</strong> 63<br />
Switzerland; Co-operative Hous<br />
ing," Agnes D. Warbasse.<br />
May 12<br />
4. "Germany, the New Leader<br />
of Co-operation in Europe; the Cra<br />
dle of Co-operative Banking; the<br />
Highly Developed Technical Effi<br />
ciency; the Race Between Co-opera<br />
tion and Starvation in Austria; Vi<br />
enna's the Largest Society in the<br />
World; the Various Expressions of<br />
Co-operation," J. P. Warbasse.<br />
May 16<br />
5. "Denmark, a Country 80 Per<br />
Cent Co-operative; the Movement<br />
in Finland; the Slow Awakening in<br />
France and Italy; the 30,000,000<br />
Russian Co-operators Who Passed<br />
Through the Revolutionary Period;<br />
the Co-operatives and the Soviet;<br />
the Movement in India and the Far<br />
East; Agriculture," Agnes D. War<br />
basse. May 19<br />
6. "The United States, Land of<br />
Experiment and Opportunity; the<br />
Various Racial Groups; Farmers as<br />
Co-operators; Organized Labor and<br />
Co-operation; the Variety of Co-op<br />
erative Activities in This Country;<br />
Federations and Wholesales" (with<br />
stereopticon views), Mabel W.<br />
Cheel. May 23<br />
7. "Practical Methods: Part 1,<br />
Organization and Administration;<br />
the Reconciliation of Democratic<br />
Control and Technical Efficiency; a<br />
Study in Co-operative Failures,"<br />
Cedric Long; Part 2, "The Place<br />
of Education in the Development of<br />
the Society; the Co-operative vs.<br />
the Private Store as Regards Serv<br />
ice; Relation to Employees and<br />
Patrons; Women in the Movement,"<br />
Mabel W. Cheel.<br />
May 26<br />
8. "Legal Problems: Incorpora<br />
tion Under Adverse Laws; the Ene<br />
mies: Unsound Schemes, Privileged<br />
Interests, Profit-Making Business,<br />
and Impatient Reformers; the<br />
Home of Frauds and Faddists," H.<br />
Rappaport. May 31<br />
9. "The Relation of Co-operative
64 <strong>CO</strong>-<strong>OPERATION</strong> <strong>CO</strong>-<strong>OPERATION</strong> 65<br />
to Other Movements; the Attitude<br />
of Co-operation Toward the State;<br />
Internationalism; Racial Problems;<br />
Unemployment; War; Producers'<br />
and Consumers' Co-operation," Ced-<br />
ric Long.<br />
Jmne 2<br />
10. "Philosophy and Ethics of<br />
Co-operation; the Co-operative<br />
Goal; Voluntary vs. Compulsory As<br />
sociation; Production for Use vs.<br />
Production for Profit and Wages;<br />
the Universal Human Denominator,<br />
the Consumer; Co-operation as an<br />
End in Social Reorganization," J. P.<br />
Warbasse.<br />
This course will be followed by a<br />
course on Technical Problems.<br />
<strong>CO</strong>NFERENCE OF JEWISH<br />
SOCIETIES<br />
The Federation of Jewish Co<br />
operatives of America has proposed<br />
that The Co-operative League take<br />
over its functions. The League lhas<br />
agreed to establish a Jewish Depart<br />
ment, with a Jewish Secretary. A<br />
conference to discuss this project<br />
will be held at the new building of<br />
The Co-operative League, 167 West<br />
12th Street, New York, on Sunday<br />
morning and afternoon, May 7.<br />
All Jewish Co-operative societies<br />
are invited to send delegates to this<br />
conference to discuss ways and<br />
means for such an amalgamation,<br />
and for promoting co-operative edu<br />
cation among the Jewish societies.<br />
PRACTICAL ADVICE<br />
The following letter received from<br />
a co-operative society, and our reply,<br />
speak for themselves. We are pub<br />
lishing these two letters for the<br />
benefit of other societies.<br />
THE LETTER<br />
I am submitting for your kind criticism<br />
a statement of this Association, which to<br />
my mind does not work out as well as ought<br />
for the turnover made. We are only one<br />
year old and hope for improvement. On the<br />
matter of overhead expenses and methods<br />
for keeping accounts, we would be thankful<br />
for information. We have a McCaskney<br />
System and do a large amount of credit<br />
business, carrying the patrons 15 days gen<br />
erally, and allowing credit to the extent of<br />
75 per cent, of members' stock. We have<br />
one delivery truck. We butcher our own<br />
meat. Meat, groceries and fruit are the<br />
principal items sold.<br />
THE REPLY<br />
We have analyzed your report, and think<br />
in some respects it shows progress and<br />
safety, while in the matter of turnover it<br />
is not so good. You will see that you are<br />
working on a 15 per cent, overhead. The<br />
rent should hereafter be figured separately<br />
fom other fixed charges. It is low in pro<br />
portion to other items, but salaries are<br />
rather high for the amount of business done.<br />
They amount to 10 per cent, of the sales.<br />
We figure that they should be nearer 5 per<br />
cent. The only way to get around this is<br />
to increase your sales by getting new mem<br />
bers, and obtaining more loyalty.<br />
The turnover on the capital stock is not<br />
enough. You are doing a business of less<br />
than $8,000 a month on $9,306 capital, not<br />
counting the notes payable. You should aim<br />
to do $10,000 a month. See page 12 of<br />
"How to Start and Run a Co-operative<br />
Store," and go over these figures with the<br />
Board of Directors and manager.<br />
We regret that you have not been able<br />
to get away from the credit system. The<br />
McCaskney system of keeping track of cred<br />
its is good, but why give credit? If you<br />
could start the coupon system instead, issu<br />
ing a book for $10 or more, even at a small<br />
discount, you would have the money in ad<br />
vance, and the members would simply have<br />
to bring their books or send them with the<br />
order until the amount had been used up.<br />
The giving of credit to the extent of 75 per<br />
cent, is apt to ruin your society at any mo<br />
ment. We heard this week o fa good so<br />
ciety going under because almost everybody<br />
started a run on the store to the extent of<br />
the credit allowed. Begin now to educate<br />
against the credit system, and show people<br />
that it is to their mutual advantage to pay<br />
cash.<br />
We recommend the use of the control<br />
system published by The League. This<br />
system is a guide and an index of the busi<br />
ness. It puts the full responsibility for<br />
every bit of goods on the manager, at retail<br />
value, and the checking up of his records by<br />
a control committee teaches business meth<br />
ods to a number of people.<br />
It is very important to insist upon care<br />
ful accounting, and believe a monthly re<br />
port should be made to the members of the<br />
exact conditions. A semi-annual reckoning<br />
is not sufficient, especially in these trying<br />
days of depression. Anything may happen<br />
in six months, and it is quite important to<br />
check up the little leakages and exert every<br />
possible means to reduce expenses and save<br />
the pennies.<br />
THE <strong>CO</strong>-OPERATIVE LEAGUE or AMERICA.<br />
GOOD EDUCATIONAL LETTER<br />
The Educational Committee and<br />
the Efficiency Committee of the Utica,<br />
N. Y., Co-operative Society are com<br />
posed of women. These two com<br />
mittees sent out a circular letter to<br />
the members of the society. This<br />
letter is a model which other societies<br />
might wisely follow:<br />
The undersigned, having been selected at<br />
the last meeting as Efficiency and Educa<br />
tional Committee, are anxious to be of real<br />
help in putting more Co-operation into the<br />
Union Co-operative Society. Our first<br />
thought in this connection is to address our<br />
selves particularly to the women, because<br />
unless they thoroughly understand the mean<br />
ing of co-operation they cannot be expected<br />
to be enthusiastic in the cause and thereby<br />
interest themselves in the more rapid<br />
growth of our organization.<br />
We feel certain that if the women once<br />
grasp the real meaning of this grand princi<br />
ple of co-operation, they will immediately<br />
become better customers of their own busi<br />
ness enterprise and not be so ready to fall<br />
for the tricky methods with which ordinary<br />
business is ever striving the breakdown the<br />
loyalty of co-operators.<br />
In the first place, we will endeavor to con<br />
vince you that it is very much to your own<br />
interest to purchase absolutely nothing from<br />
those who are constantly offering alleged<br />
bargains, their purpose being simply to get<br />
you to buy other goods. It must be plain<br />
to you that no firm can sell goods at cost.<br />
Every business enterprise has more or less<br />
of overhead expense, such as rent, light,<br />
heat, paper, string, and innumerable other<br />
items which enter into the cost of doing<br />
business. In addition there is delivery ex<br />
pense, wages for hired help, interest on<br />
money invested, as well as a profit for the<br />
proprietor. These expenses are very much<br />
alike in every business of a like nature.<br />
Then, too, every business except ours (or,<br />
rather, yours) has another item, namely,<br />
bad debts; and this usually amounts to a<br />
considerable sum in the course of the year.<br />
Now, when you buy from others who sell<br />
exactly the same sort of goods that you can<br />
buy in your own store, you are not only<br />
aiding them in meeting their overhead ex<br />
penses and providing a profit for them, but<br />
you are depriving yourself of the benefit to<br />
be derived by decreasing your own over<br />
head expenses. Let us see if we can't prove<br />
this to you by way of figures:<br />
Last year the Utica Co-operative Society<br />
did a business of about $114,000. We have<br />
invested in buildings, machinery, fixtures,<br />
merchandise, etc., $67,000. The interest on<br />
investment and other overhead expenses are<br />
practically fixed items, and would not be<br />
increased one cent if we did a volume of<br />
business approximating $200,000, or prac<br />
tically twice what we did in 1920. So that<br />
we doubled our business this year, as we<br />
certainly should, the fixed expense of doing<br />
business will be distributed in such a man<br />
ner that on each dollar's worth of business<br />
pur expenses will be just one-half of what<br />
it was last year.<br />
This saving from better co-operation will<br />
benefit you and every other member in ex<br />
actly the proportion of your purchases, be<br />
cause whatever is saved from the cost of<br />
doing business will be added to the "Sav<br />
ings-returns" which are distributed to the<br />
members at the close of the year. This is<br />
the material benefit you derive by giving<br />
your business to your own store. Is it not<br />
worth while? If you learn this lesson and<br />
live up to it, you will at once make a firm<br />
resolution to increase your own business,<br />
buying only from your own store, boost for<br />
the continued growth of our membership.<br />
In a word, set your mind upon helping those<br />
who help you.<br />
Let us, therefore, all pull together to<br />
make our society the tremendous success it<br />
can and should be made. While we may<br />
not be endowed with the keenest intellect,<br />
we should learn to become equally inter<br />
ested in promoting the welfare of our own<br />
organization, for we are the ones that benefit<br />
in the end. Every new member secured and<br />
every additional dollar's worth of business<br />
done in our store benefits all the members<br />
alike, provided their investments in the so<br />
ciety and their purchases are alike. Even<br />
those who have never secured a new mem<br />
ber and perhaps never intend to get one,<br />
are benefited by the labors of the others in<br />
increasing our membership. But the latter<br />
class should at least endeavor to help them<br />
selves and make their investment more<br />
valuable to themselves by making their pur<br />
chases at their own store.<br />
To enable our committee to give further<br />
aidto the cause, we earnestly urge that each<br />
member fill out at once the "Questionnaire"<br />
enclosed, and drop it into the Suggestion<br />
Box just inside the entrance of our store.<br />
Or, if you prefer, hand it to one of our<br />
drivers or mail it direct to the Utica Co<br />
operative Society, 914 Court Street. The<br />
work we are planning is along the line of<br />
better co-operation, and you can aid us ma<br />
terially in this way. Furthermore, if you<br />
have any complaint to make or any sugges<br />
tion to offer, do not hesitate to make use of<br />
this Suggestion Box. You may be sure that<br />
your complaints or suggestions will have<br />
the most careful attention, to the end that<br />
all of us will be benefited.<br />
Fraternally yours,<br />
Educational Com.<br />
Mrs. R. Henschke,<br />
Mrs. D. Eichenhofer,<br />
Mrs. A. Fahrman.<br />
Efficiency Com.<br />
Mrs. H. Brucker,<br />
Mrs. F. Buttenschoen,<br />
Mrs. J. Seaman.
66 <strong>CO</strong>-<strong>OPERATION</strong><br />
NEWS AND <strong>CO</strong>MMENT<br />
PACIFIC <strong>CO</strong>-OPERATIVE LEAGUE<br />
IN RECEIVER'S HANDS<br />
Three years ago The Co-operative<br />
League began a study of the Pacific<br />
Co-operative League. During this<br />
period The League has had a number<br />
of its representatives visit the Pacific<br />
coast to get first hand information.<br />
These representatives have included<br />
its president in 1919 and its financial<br />
secretary in 1921. During the past<br />
two years particularly, a large<br />
amount of correspondence, reports<br />
and telegrams have come to the of<br />
fice of The League and many Co-<br />
operators from the Pacific coast have<br />
brought information. The executive<br />
board of The League for a long time<br />
has been better informed concerning<br />
what was going on the Pacific coast<br />
than most members of the Pacific<br />
League. In fact the indifference of<br />
these members and of the Western<br />
Labor Movement to the dangers of<br />
the situation could be explained only<br />
on the ground of ignorance.<br />
As is the practice of The League,<br />
we first gave the officers of the Pa<br />
cific League the benefit of our ex<br />
perience and judgment and tried to<br />
work with them. Even though it was<br />
evident that the Pacific League was<br />
pursuing a course that was bound<br />
to prove disastrous, we still hoped<br />
that they could be induced to adopt<br />
sound co-operaitve principles. We<br />
had showed the Co-operators of the<br />
whole country that the National Co<br />
operative Association was using<br />
methods that were bound to bring<br />
failure and we made it perfectly clear<br />
that the Pacific League was using<br />
precisely the same methods. We had<br />
the facts. We published the cold<br />
figures and warned both these organ<br />
izations that they were taking the<br />
money of the working people with<br />
no prospect of success.<br />
In the face of this repeated ad<br />
vice, the Pacific League supported<br />
the National Association. This was<br />
not the worst. Its officers united<br />
with the officers of the National in<br />
a campaign of false statements con<br />
cerning the Co-operative Movement<br />
such as this country had never seen.<br />
We have already published in this<br />
magazine how the employees and of<br />
ficers of these two organizations<br />
came to the Second American Co<br />
operative Congress at Cincinnati in<br />
1920 and attempted to destroy The<br />
Co-operative League by methods<br />
which were as unscrupulous as they<br />
were unsuccessful. They stood on<br />
the floor of the convention and de<br />
fended practices which no decent<br />
bunco man would have countenanced.<br />
The pitiful story can be read in the<br />
Transactions of the Second Congress<br />
and in this magazine during the past<br />
three years.<br />
Still hoping that the Pacific League<br />
might be saved, the executive officers<br />
of The Co-operative League were in<br />
strumental in having resolutions of<br />
the Second Congress, which con<br />
demned it, not given publicity. When<br />
the credentials of the directors of the<br />
National were withdrawn by the<br />
Congress, exception was made of the<br />
president of the Pacific League. He<br />
remained and attended every one of<br />
the nine sessions of the Congress.<br />
But every consideration failed to in<br />
terest these officials in sound Co-op<br />
eration.<br />
It has been evident for two years<br />
that the Pacific League was abso<br />
lutely in the grip of a small bureauc<br />
racy of utterly impractical men.<br />
They may once have had interest in<br />
Co-operation but that interest has<br />
left them. If they ever had a knowl<br />
edge of co-operative principles they<br />
have renounced them. The wildest<br />
tyros could not hit upon more utterly<br />
hopeless schemes for organizing co<br />
operative societies. American Co<br />
operation has some dark pages but<br />
none so written over with ignorance<br />
and shamelessness. The one thing<br />
they resented was the advice of ex<br />
perts whose business it is to know<br />
the technic of co-operative methods.<br />
In the spring of 1921, The Co-op<br />
erative League worked out for<br />
the Pacific League a critical anal-<br />
ysis of its defects and a plan of re<br />
organization. It was never acted<br />
upon. The group of officials who con<br />
trolled the organization had made it<br />
practically impossible for outside in<br />
formation or requests for informa<br />
tion to reach the branches. The Cen<br />
tral Office appoints the local store<br />
managers and these managers act as<br />
the agents for the San Francisco of<br />
fice. Communications sent from The<br />
Co-operative League to a branch of<br />
the Pacific League, no matter to<br />
whom addressed, were destroyed or<br />
sent to the San Francisco office. It<br />
was not only impossible for The Co<br />
operative League to advise these<br />
people but the separate societies<br />
could not communicate with one an<br />
other. They were isolated from the<br />
Co-operative Movement, and to this<br />
day many of them do not know what<br />
is actually happening. The system<br />
of espionage and suppression has<br />
been effective in keeping these people<br />
in quiet subjection. Conventions of<br />
the Pacific League were largely con<br />
ventions of the employers of the or<br />
ganization branches. Had it been<br />
possible to let in among the member<br />
ship rays of light concerning the true<br />
nature of the situation, the member<br />
ship would have risen up long ago<br />
and cast out the dangers that were<br />
preying upon them, and organized a<br />
true Co-operative Movement.<br />
Repeated "reorganizations" of<br />
the Pacific League have been re<br />
ported and analyzed from time to<br />
time in this magazine. "The Pacific<br />
Wholesale" was never much more<br />
than a fiction, for advertising pur<br />
poses. "The Co-operative Finance<br />
Company," the "Universal Co-opera<br />
tive Brotherhood," and the "Pacific<br />
Co-operative League Stores, Incor<br />
porated," have all been launched one<br />
after another, to save a bad situa<br />
tion. Neither fancy stories, misrep<br />
resentation nor bombast have suc<br />
ceeded in promoting these enter<br />
prises.<br />
And now the latest news from the<br />
Pacific coast is that the Pacific Co<br />
operative League and the Pacific<br />
League Stores, Incorporated, are in<br />
<strong>CO</strong>-<strong>OPERATION</strong> 67<br />
the hands of a Federal receiver. How<br />
much on the dollar the disillusioned<br />
people will get is doubtful.<br />
Their officials tell them that the<br />
organization is perfectly solvent, but<br />
the solvency is based on high finan<br />
cial sleight-of-hand. When a group<br />
of people have paid in $7,000 cash,<br />
and have a store opened with $2,500<br />
worth of goods, and the balance of<br />
the money is charged up to the ex<br />
penses of organization, administra<br />
tion and education, the concern is<br />
solvent in terms of that kind of fi<br />
nance, if it is any comfort to the<br />
people to call it solvency.<br />
It has been difficult to develop a<br />
Co-operative Movement in California<br />
under such conditions, with this out<br />
rageous thing in the way. Fortun<br />
ately there are good societies that<br />
refused to be involved. Within the<br />
Pacific League are many earnest and<br />
honest people, eager for a Co-opera<br />
tive Movement. There are many<br />
sound Co-operators in California and<br />
the neighboring states. These can<br />
now come forward. The people whose<br />
longing for true Co-operation has<br />
been suppressed and discouraged can<br />
now unite.<br />
Co-operation in California has won<br />
a victory. With the removal of this<br />
burden on real Co-operation, the Pa<br />
cific coast can now enter into a new<br />
and clean co-operative life.<br />
Let us hope that this is the last<br />
we shall have to publish of this af<br />
fair. Here are extracts from the last<br />
four communications from the Pa<br />
cific Coast; we could publish hun<br />
dreds of such statements:<br />
SELIGMAN ARIZONA HIT<br />
I do not think we can do much with The<br />
Co-operative Leagues' little paper, "The<br />
Home Co-operator," now, because our<br />
members are all sore about the whole sub<br />
ject of Co-operation on account of the<br />
treatment they have had at the hands of<br />
Ames and his crew in San Francisco.<br />
It is said that The Pacific League has<br />
gone into the hands of a receiver. That<br />
will hurt the movement all over the West.<br />
A failure now will be very bad for the<br />
cause. But Ames has brought this on by<br />
his raw dealing with the stores; that is, if
68 <strong>CO</strong>-<strong>OPERATION</strong><br />
he treated the others as he did us. This<br />
store has made money all the time, and has<br />
a good trade now; but Ames has so used<br />
up the cash that we have had but little to<br />
go on; and he has always had a "claim"<br />
against us in the home office.<br />
Seligman, Arizona. T. W. BECKWITH.<br />
PRACTICES AT PHOENIX<br />
The Pacific League failed, not because it<br />
was co-operative, but because it was not<br />
co-operative. It consisted of a machine<br />
which collected $10 a head from would-be<br />
Co-operators, who were called upon to do<br />
nothing but look pleasant while it kept<br />
them in darkness, and now and then slipped<br />
them a bit of taffy. In the branch to which<br />
I belonged (Phoenix, Arizona), we never<br />
once were told anything about a conven<br />
tion till it was over, till we were told that<br />
Mr. So-and-So had attended from Phoenix;<br />
and he was the man who was running us.<br />
The last occasion we heard of the delegates<br />
were most of them managers of the dif<br />
ferent stores who owed their appointment<br />
to the San Francisco office. Such people do<br />
not criticize. We found that any attempt<br />
to exchange any information or ideas be<br />
tween branches was denounced furiously<br />
and prevented by every possible means.<br />
Los Angeles, Cal. THOMAS H. BELL.<br />
ADVICE FROM SAN DIEGO<br />
(Telegram)<br />
Sheriff closed our stores February 17.<br />
Attachment by San Francisco wholesalers<br />
for thousands owed by Pacific League.<br />
Apparently scheme of League to destroy<br />
all bona fide co-operatives refusing to turn<br />
over stores to corporation controlled by<br />
Ames, Todd and Dobbs. San Diego with<br />
drew from League November 17. We do<br />
not owe San Francisco wholesalers nor Pa<br />
cific League one cent. Now suing Ames<br />
and League for accounting and return of<br />
several thousand dollars due us. Other<br />
Co-operatives being closed by League and<br />
big1 business. Workers will lose thousands.<br />
These fakirs must be exposed. Can you<br />
circularize coast unions, Co-operatives and<br />
newspapers warning, against this outfit?<br />
SAN DIEGO <strong>CO</strong>-OPERATIVE ASS'N.<br />
CHARLES J. EASON, Pres.<br />
STANLEY McGUE, Sec.<br />
METHODS EXPOSED<br />
(Telegram)<br />
California Corporation Commissioner re<br />
voked Pacific League Corporation permit<br />
to do business in California February 17,<br />
ten days before Ames asked receivership.<br />
Following demand of Federated Trades<br />
Council, State Commissioner has ordered<br />
special investigation of Ames outfit. Car<br />
penters' Union here has commenced legal<br />
proceedings against Ames' crowd. These<br />
facts should be given publicity.<br />
SAN DIEGO <strong>CO</strong>-OPERATIVE ASSOC.<br />
March 24, <strong>1922</strong>.<br />
ONE CENT ON THE DOLLAR<br />
"The National Co-operative Asso<br />
ciation" went into the receiver's<br />
hands last year and its Hoboken,<br />
Chicago and Seattle warehouses were<br />
sold out. It owed The Co-operative<br />
League for literature $44. The ac<br />
counts have been settled and The<br />
League has just received a check for<br />
44 cents. The working people who<br />
put in their money will get one cent<br />
on the dollar. The lawyers get<br />
$6,350.<br />
A letter just received from the ref<br />
eree in bankruptcy of the district<br />
court of the United States states as<br />
follows: "In my entire experience<br />
as referee which covers a period of<br />
ten years, I do not recall a case where<br />
the funds were so badly dissipated as<br />
they were in this matter. It is a<br />
source of great regret that so small<br />
an amount could be recovered, as<br />
many poor persons were creditors of<br />
this bankrupt who could ill afford to<br />
lose the money. As I have observed<br />
the wreck of this company I am<br />
wondering whether there are any co<br />
operative organizations that are<br />
properly handled and are a finan<br />
cial success."<br />
Contrast the above facts with the<br />
following statements of E. O. F.<br />
Ames, president of the Pacific Coast<br />
Co-operative League and director of<br />
the National Co-operative Associa<br />
tion, made on the floor of the Cin<br />
cinnati Convention a few weeks be-<br />
for the National failed:<br />
"I can not understand the slightest<br />
grounds for the criticism which Dr.<br />
Warbasse is giving to the National<br />
Co-operative Association. I highly<br />
honor the men at its head and the<br />
splendid work they are doing"; and<br />
"If the National should fail it will be<br />
due to this criticism."<br />
These are the sort of people who<br />
would say that they do not see the<br />
slightest grounds for the surgeon<br />
telling the patient that his leg is<br />
broken; and if he don't get up and go<br />
to work it is the surgeon's fault.<br />
They would criticize a man for giv<br />
ing the alarm when a house is on<br />
fire.<br />
WARNING <strong>CO</strong>NCERNING THE<br />
"<strong>CO</strong>-OPERATIVE LEAGUE OF<br />
AMERICA" OF PENNSYL<br />
VANIA<br />
The name of The Co-operative<br />
League is sometimes confused with<br />
that of an organization calling itself<br />
the "Co-operative League of America"<br />
w'hich has been doing business in<br />
several states. It represents itself to<br />
be co-operative. It is not incorpo<br />
rated in any state, but it has its<br />
head office in Pittsburgh. It is a<br />
"deed of trust" organization. The<br />
ill-famed "Co-operative Society of<br />
America," before it went into receiv<br />
ership, recommended this organiza<br />
tion very highly. We have already<br />
described the nature of the deed of<br />
trust. It is to provide trustees for<br />
incompetents, infants and imbeciles;<br />
and it places all control absolutely in<br />
the hands of the few organizing<br />
trustees. No honest business calling<br />
itself "co-operative" should be at<br />
tempted under this law.<br />
This "Co-operative League of<br />
America," of Pennsylvania, went into<br />
New York state last year but was<br />
forbidden to do business in that state.<br />
It then went into Ohio and the west<br />
ern states. It conducts a banking<br />
business called "co-operative," and<br />
makes loans to members for build<br />
ing purposes at 3 per cent per year.<br />
It recently attempted to open offices<br />
in Illinois, but the attorney general<br />
and the secretary of state prohibited<br />
its doing so. Attorney General<br />
Brundage of Illinois, in a letter to<br />
the secretary of state, says: "It<br />
appears that the said League is or<br />
ganized as a common law trust, and<br />
it has been repeatedly held by this<br />
department that such organization,<br />
when formed for business purposes,<br />
is aganist the public policy of this<br />
<strong>CO</strong>-<strong>OPERATION</strong> 69<br />
state. The sale of its loan and home<br />
purchasing contracts should not be<br />
permitted by your department."<br />
This concern has recently made ap<br />
plication to the Ontario government<br />
for the privilege of doing business in<br />
Canada.<br />
Because The Co-operative League<br />
has often been confused with this<br />
non-co-operative business enterprise,<br />
we desire to warn our readers and all<br />
Co-operators that we have nothing in<br />
common. It was organized after The<br />
League and is infringing upon The<br />
League's priority in using the name.<br />
It will not be permitted to do busi<br />
ness in states which have an attorney<br />
general and secretary of state who<br />
are capable of protecting the citizens<br />
from such organizations.<br />
LAST WORD ON "<strong>CO</strong>-OPERA<br />
TIVE SOCIETY OF AMERICA"<br />
Harrison Parker's "Co-operative<br />
Society of America" went into the<br />
hands of a receiver last fall. How<br />
much money the working people lost<br />
by this non^co-operative scheme is<br />
not definitely known, but some $11,-<br />
500,000 was invested in it by inno<br />
cent people who thought they were<br />
joining a co-operative society.<br />
We advise Co-operators that this<br />
"deed of trust" concern has started<br />
business again with two new trustees.<br />
It claims that it has "reorganized";<br />
but it is no more co-operative than 'it<br />
ever was. It will not be permitted to<br />
do business in states which have a co<br />
operative law prohibiting such enter<br />
prises.<br />
<strong>CO</strong>-<strong>OPERATION</strong> SUCCEEDS<br />
The above horrible examples are ex<br />
ternal to the field of Co-operation.<br />
The Co-operative Movement in the<br />
United States is moving forward with<br />
steady progress. The substantial so<br />
cieties are joining The Co-operative<br />
League. Among the members of The<br />
League, failure is rare. Fundamen<br />
tal work is bringing success.
70 <strong>CO</strong>-<strong>OPERATION</strong><br />
THE NORTHERN STATES LEAGUE<br />
ORGANIZED<br />
The following telegram has just<br />
been received by The League:<br />
Our convention a great success. Sixteen<br />
societies represented, with a total member<br />
ship of 10,500. Northern States Co-opera<br />
tive League organized with headquarters in<br />
Superior. Decided to hold next convention<br />
in September at Minneapolis. Accept our<br />
hearty thanks for your greetings to the<br />
Convention. S. ALENNE, Sec'y.<br />
Superior, Wisconsin.<br />
Thus the steady and quiet work of<br />
building a Co-operative Movement in<br />
the United States goes on.<br />
NEW YORK <strong>CO</strong>-OPS DO BUSINESS<br />
OF $1,600,000<br />
The Co-operative Associations in<br />
New York City did a business of<br />
$1,600,000 during 1921, according<br />
to Louis Blachly, Director of the Co<br />
operative Division of the State De<br />
partment of Farms and Markets.<br />
This figure does not include the<br />
business done by the co-operative<br />
housing societies.<br />
While some weak organizations<br />
went to the wall, the well-organized<br />
groups continued to grow and pros<br />
per. Two of the Co-operatives<br />
which paid no dividends in 1920<br />
made 8 per cent returns to their<br />
members last year. The large Co<br />
operatives showed a steady increase<br />
in the number of members and the<br />
amount of business done.<br />
The largest Co-operative in New<br />
York is the Finnish Co-operative<br />
Trading Association. During 1921<br />
its business was $269,000, including<br />
receipts of $135,000 from its bak<br />
ery, $58,000 from a meat market,<br />
and $11,500 from a pool room. This<br />
society has a membership of 1,800,<br />
a gain of 300 for the year. A Co<br />
operative restaurant is run by an<br />
other association in the same build<br />
ing. This restaurant did a business<br />
of $70,000 last year. The members<br />
of the Finnish Trading Association<br />
also conduct several large apart<br />
ment houses co-operatively.<br />
A Co-operative bakery in Brook<br />
lyn has a membership of 2,000, and<br />
did a business of $175,000 for the<br />
year. The Workmen's Circle oper<br />
ates a bakery in the Bronx, the sales<br />
during 1921 amounting to $206,000.<br />
Six butcher shops are conducted by<br />
the People's Co-operative Society, a<br />
Jewish group. The business to<br />
talled $225,000 in 1921, meat being<br />
furnished below current prices.<br />
<strong>CO</strong>URSE ON <strong>CO</strong>-<strong>OPERATION</strong><br />
The Scranton Co-operative Asso<br />
ciation, of Scranton, Pennsylvania,<br />
is now conducting a study course on<br />
Co-operation as a part of its educa<br />
tional work. Martin Weber, the<br />
manager of the store, is the instruc<br />
tor. Thirty-one students are en<br />
rolled and the average attendance is<br />
twenty-five. The students consist<br />
mostly of the Board of Directors of<br />
the society, members of the Wom<br />
an's Guild, and of the Educational<br />
Committee.<br />
The class meets every Friday<br />
night in the store. The Syllabus for<br />
a study course, prepared by The<br />
League, is used as an outline. Son-<br />
nichsen's "Consumers' Co-opera<br />
tion," and Harris' "Co-operation,<br />
the Hope of the Consumer," are<br />
used as text-books.<br />
SOCIETY DISTRIBUTES $12,000<br />
Checks for more than $12,000 in<br />
the form of savings-returns were<br />
given out by the Soo (Michigan) Co<br />
operative Mercantile Association in<br />
amounts from $1.25 to more than<br />
$360, at the ninth annual meeting of<br />
the association.<br />
More than 500 stockholders and<br />
others interested attended the meet<br />
ing. At the election of officers there<br />
were 341 votes cast. The society has<br />
398 members. This is close to 100<br />
per cent, attendance.<br />
The stockholders received five per<br />
cent, savings-returns on the goods<br />
they purchased during the year and<br />
the non-stockholders received 2J/2 per<br />
cent, on the amounts of their pur-<br />
chases, the amount being paid to them<br />
either in merchandise or in credit<br />
toward the purchase of shares. The<br />
stockholders also receive checks for<br />
6 per cent, on their stock.<br />
T. M. Ross, the president, told the<br />
stockholders the need of expansion of<br />
the organization, "Our bake shop is<br />
inadequate, we need larger quarters,"<br />
he declared. He suggested building<br />
a new bakery on the rear of their<br />
main store property and using the<br />
space now occupied by the bakery to<br />
enlarge the grocery lines. The work<br />
ing capital of about $19,000 was<br />
turned over 15 times during the past<br />
year.<br />
In 1921 the society did a business<br />
of $309,000. In 1920 the income was<br />
$365,000 on account of the higher<br />
since then, the society did a bigger<br />
have fallen at least thirty per cent,<br />
prices existing at that time. As prices<br />
business in 1921 than the previous<br />
years, though the receipts fell. It is<br />
operated strictly on the Rochdale<br />
basis, is a member of The League,<br />
and handles groceries, meat, coal, and<br />
bakery products.<br />
At the close of the meeting refresh<br />
ments were served and dancing was<br />
enjoyed for the remainder of the<br />
evening.<br />
FIRE INSURANCE AT WOOD-<br />
RIDGE<br />
It cost the farmers of Woodridge,<br />
New York, last year less than one<br />
cent for every hundred dollars of in<br />
surance written on their property by<br />
the Co-operative Fire Insurance Co.<br />
of Sullivan and adjoining counties.<br />
Compare this cost with your fire in<br />
surance premium!<br />
With $4,330,660 worth of fire in<br />
surance in force at the end of Sep<br />
tember, 1921, the expenses incurred<br />
amounted to only $38,000, which in<br />
cluded $27,000 in losses and only $11,-<br />
000 for administrative and operating<br />
expenses. Thirty-nine members re<br />
ceived sums ranging from $5 to $4,-<br />
850 for damages to their property<br />
from fire or lightning. Since the co<br />
operative insurance company com<br />
menced business in 1913, fire and<br />
<strong>CO</strong>-<strong>OPERATION</strong> 71<br />
lightning losses of $114,721 have been<br />
paid to members.<br />
By the end of 1921 the co-operative<br />
had $6,500,000 worth of insurance in<br />
effect. Members are charged pre<br />
miums based on the losses and op<br />
erating expenses of the previous year.<br />
It is estimated that the saving to the<br />
Co-operators during 1921 amounted<br />
to more than $79,000. There are now<br />
1,900 policies in effect, and 1,015<br />
members enrolled in the society.<br />
Woodridge, New York, is the cen<br />
ter for half a dozen prosperous Co<br />
operatives, including two fire insur<br />
ance companies, one auto insurance<br />
company, and a credit union.<br />
CLEVELAND DISTRICT LEAGUE<br />
ORGANIZED<br />
The seven co-operative enterprises<br />
in Cleveland, Ohio, have formed a<br />
District League in that city. The<br />
following outline of work to be under<br />
taken by the League is suggested:<br />
1. Members are to be kept in close<br />
touch with the state and national or<br />
ganizations.<br />
2. Uniform propaganda for co-op<br />
erative societies is to be published<br />
and distributed.<br />
3. A more extensive city-wide ed<br />
ucational program is to be planned<br />
and carried out by the League.<br />
4. The buying power of the vari<br />
ous societies may be concentrated,<br />
and a lower wholesale rate secured.<br />
5. Promises of large returns on<br />
money invested can be minimized and<br />
the value of Co-operation emphasized.<br />
The first immediate task under<br />
taken was the sale of shares in the<br />
City Co-operative Dairy, capitalized<br />
at $100,000. The Cleveland District<br />
League will aid in organizing the<br />
new co-operative dairy, which is the<br />
outgrowth of the recent milk strike<br />
in that city. The District League<br />
recommended to the City Co-opera<br />
tive Dairy that no interest, or as low<br />
a rate as possible, be paid on stock<br />
issued by the dairy. Joseph C. Robb<br />
of the B. L. E. Co-operative National<br />
Bank was elected temporary Chair<br />
man, and Edith Gwinn, temporary<br />
Secretary.
72 <strong>CO</strong>-<strong>OPERATION</strong><br />
HUCKNALL, ENGLAND, INTER<br />
ESTS THE CHILDREN<br />
You will observe by the heading of our<br />
letter that this Society was established in<br />
1864, and, although by no means the<br />
largest society in the Midlands, it is with<br />
out doubt one of the most successful, and<br />
has had a wonderful career.<br />
We celebrated our Jubilee in 1914, with<br />
a very big program, including a most suc<br />
cessful Sunday service, for it was on that<br />
particular date when the Society was estab<br />
lished fifty years before The event was<br />
most impressive and unique in every re<br />
spect. Concerts and a special exhibition of<br />
salable goods were held. All the day school<br />
children in the district served by the So<br />
ciety were right royally entertained, and a<br />
special Jubilee dividend was paid to our<br />
members at a rate of about 25 per cent in<br />
advance of our usual quarterly dividend.<br />
Before our program was fully completed<br />
the great war broke put, and this before<br />
the whole of the Jubilee money was dis<br />
posed of. These celebrations gave us a<br />
huge advertisement, and since then ours<br />
has been a continuous line of success. We<br />
may mention that when peace was cele<br />
brated we entertained all the day school<br />
children again on similar lines, the after<br />
noon alone costing us about 450 pounds<br />
($1,800), and with this we had another big<br />
advertisement.<br />
We would like to particularly point out<br />
that we are one of the few Societies that<br />
has made farming a success. We consider<br />
that we have got one of the "show farms"<br />
of the Midlands.<br />
Yours, etc., J. C. HAWITT,<br />
Gen. Sec. and Manager Hucknall Torkard<br />
Industrial Provident Society, Ltd.<br />
HOW BOSTON <strong>CO</strong>-OPERATIVE<br />
BANK HELPS MEMBERS<br />
Here are a few samples of what we do in<br />
our Credit Union in Boston. One $50 loan<br />
was made for a member to buy groceries<br />
and household necessities in quantity at low<br />
price and pay back to Credit Union not less<br />
than $2 per week. A $50 loan was made<br />
to a member whose wife was to have a<br />
baby. When the doctor arrived he had the<br />
money to pay on the spot. He is paying<br />
back $2 each week. A $50 loan was made<br />
to a member to buy winter clothing for<br />
himself and mother, He is paying back $3<br />
each week. A loan of $50 was made to en<br />
able a girl member to have her teeth at<br />
tended to and pay cash. She pays back<br />
$2 per week. A $75 loan was made to a<br />
member so he could pay back-rent for his<br />
married sister whose husband had been out<br />
of work three months and had been or<br />
<strong>CO</strong>RRESPONDENCE<br />
dered out. He pays back $4 each week.<br />
All our borrowers are paying up promptly.<br />
We loan no money for buying luxuries.<br />
Every borrower furnishes two endorsers,<br />
and rf the loan is over $50 security is re<br />
quired^ such as insurance policy, etc.<br />
I wish space would give me a chance to<br />
give you more cases. We are out to help<br />
worthy members to get ahead, but do not<br />
listen to any application for loans on sure<br />
thing gambles in stocks, nor for a joy rid<br />
ing auto. We have plenty of worthy cases<br />
and could help more if we had more funds.<br />
Our expenses since April 20, 1921, have<br />
been only $23.20.<br />
HARRY L. HASKELL,<br />
Treasurer.<br />
Union Workers Credit Union,<br />
Boston, Mass.<br />
NINE HUNDRED PER CENT<br />
GROWTH IN ERIE<br />
Our store business here has grown from<br />
less than $300 per week a year ago to over<br />
$2,700 per week now. During the year<br />
1921 we showed a net profit of 30 per<br />
cent, on our investment. There is no groc<br />
ery in the city of Erie doing the volume<br />
of business that our store is. Neither is<br />
there any store whose business is so valued<br />
and sought after by the jobbers.<br />
H. O. HIRT, Manager.<br />
Lake Erie Co-operative Association,<br />
Erie, Pa.<br />
(This society is a member of The League,<br />
and it keeps the members loyal and in<br />
formed on Co-operation by distributing the<br />
"Home Co-operator.")<br />
EN<strong>CO</strong>URAGEMENT FOR<br />
MANAGERS<br />
This is taken from a letter writ<br />
ten to The League by the manager<br />
of the Annfield Plain Industrial Co<br />
operative Society, Ltd., England:<br />
I may say if I'm spared until March I<br />
shall commence my fiftieth year as man<br />
ager. I commenced with a boy and myself<br />
and we have now some 350 or more em<br />
ployees, our turnover for 1920 being over<br />
a million pounds ($4,000,000.)<br />
Yours sincerely,<br />
A. BROWN.<br />
NOTICE<br />
Persons having books on Co-opera<br />
tion are requested to donate them to<br />
The League.<br />
<strong>CO</strong>-<strong>OPERATION</strong><br />
PUBLICATIONS<br />
OF THE <strong>CO</strong>-OPERATIVE LEAGUE<br />
HISTORICAL Per Copy Per 100<br />
3. Story of Co-operation . ................................................9 .10 $6.00<br />
7. British Co-operative Movement ........................................ .10 6.00<br />
10. A Baker and What He Baked (Belgian Movement)...................... .05<br />
38. Co-operative Consumers' Movement in the United States............... .05 4.00<br />
TECHNICAL<br />
4. Hew to Start and Run a Rochdale Co-operative Society.................. .10 4.00<br />
5. System of Store Records and Accounts................................ .50<br />
6. A Model Constitution and By-Laws for a Co-operative Society........... .05 2.60<br />
8. Co-operative Education. Duties of Educational Committee Defined..... .10<br />
9. How to Start a Co-operative Wholesale................................ .10<br />
27. Why Co-operative Stores Fail .............. .......................... .02 1.00<br />
2. Co-operative Store Management ...................................... .10<br />
14. How to Start and Run a. Women's Guild................................ .05<br />
MISCELLANEOUS<br />
46. Producers' Co-operative Industries ................................... .10<br />
11. Control of Industry by the People Through the Co-operative Movement... .10<br />
12. Credit Union and Co-operative Store.................................. .05 1.75<br />
34. Co-operative Movement (Yiddish) .................................... .02 IM<br />
43. Co-operative Housing ................................................. .10<br />
ONE-PAGE LEAFLETS<br />
(One cent each; 50 cents per 100; $2.50 oer BOO; $4 per 1,000)<br />
(1) Principles and Aims of the Co-operative League of America; (17) Do You Know Why You<br />
Should Be a Co-operator; (20) Why Loyalty Is Necessary; (21) Cost and Crime of<br />
Credit; (22) A Real Co-operator; (2E) Resolutions Adopted by A. F. of L.; (26) Factory<br />
Workers, Co-operate!; (28) Do You Know About Co-operation in Europe?; (40) Have<br />
You a Committee on Education and Recreation?; (44) What Is the Co-operative<br />
Movement? Miscellaneous Educational Leaflets.<br />
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BOOKS<br />
The following books are recommended as containing the best discussions of the modern<br />
Co-operative Movement. They made be ordered through The League:<br />
Bubnoff, J. B.: The Co-operative Movement in Russia, 1917.......................... .$1.25<br />
Faber, Harald: Co-operation in Danish Agriculture, 1918.............................. 2.7B<br />
Flanagan, J. A.: Wholesale Co-operation in Scotland, 1920............................ 2.00<br />
Gebhard, Hannes: Co-operation in Finland, 1916...................................... 2.00<br />
Gide, C.: Consumers' Co-operative Societies, 1921...................................... 2.50<br />
Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, $2.00; paper<br />
bound ........................................................................... -60<br />
History of Co-operation in the United States. Vol. IV, Johns Hopklns University<br />
Studies, 1888 ................................................................... 4.00<br />
Holyoake, George Jacob: The History of the Rochdale Pioneers........................ 2.00<br />
Howe, Fred C.: Denmark, a Co-operative Commonwealth, 1921.......................... 2.50<br />
Maxwell, Wm.: History of Co-operation in Scotland, 1910.............................. 2.00<br />
Nicholson, Isa: Our Story ............................................................ -SB<br />
Powell, G. Harold: Co-operation in Agriculture. Macmillan ........................... 1.50<br />
Redfern, Percy: The Story of the C. W. S............................................. 2.00<br />
Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918....................... 2.50<br />
Smith-Gordon: Co-operation in Many Lands, 1920...................................... 2.50<br />
Sonnichsen, Albert: Consumers' Co-operation, 1919. Cloth bound, $1.75; paper bound... .75<br />
Stolinsky, A.: The Co-operative Movement. In Yiddish................................ 1.00<br />
Webb, B. and S.: The Consumers' Co-operative Movement, 1921........................ 6.00<br />
Webb, Catherine: Industrial Co-operaticn, 1917 ...................................... 1.50<br />
Woolf, Leonard: Co-operation and the Future of Industry............................. 2.00<br />
Woolf, L.: Socialism and Co-operation................................................ 2.00<br />
"The Co-operative Consumer" and "Co-operation," III (1917), VI (1920), VII (1921).... 1.25<br />
Transactions of Second American Co-operative Convention, 1920....................... 1.00<br />
The People's Year Book, <strong>1922</strong>...................................................... .75<br />
(Ten cents postage should be added for books which cost more than $2.00, and five cents<br />
for the smaller books.)
THE <strong>CO</strong>-OPERATIVE LEAGUE OF AMERICA<br />
(Member of The International Co-operative Allinace)<br />
Executive Office: 2 West 13th Street, New York<br />
An educational organization for teaching the history, principles, methods and aims of the<br />
Co-orerative Movement and for the promotion of Co-operation in the United States.<br />
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Co-operative Central Exchange<br />
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We supply goods to Co-operative Societies OX<br />
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vidually.<br />
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Co-operation in Scotland<br />
In no part of the world is Co-operaiion further<br />
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THE PRODUCER<br />
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tive affairs, and problems of the<br />
British Co-operative Movement,<br />
read THE PRODUCER.<br />
Published by<br />
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Post free 4 sh. 6d. a year.<br />
The Trade and Technical Orean of British<br />
Co-operation.<br />
THE HOME <strong>CO</strong>-OPERATOR<br />
A four-page magazine for<br />
use in co-operative societies.<br />
Issued monthly, in bundles, $1 per hundred.<br />
Published by<br />
The Co-operative League<br />
Write to the Managing Editor, Albert Son-<br />
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(OOFCRATION<br />
A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in vol<br />
untary association, produce and distribute for their own use the things they need<br />
Published monthly by The Co-operative League, 167 West Twelfth Street, 'New York City,<br />
J. P. Warbasse, Editor. Price, $1.00 a year. Entered as second class matter, December 19,<br />
1917, at the Post Office at New York, N. Y., under (the Act of March 3, 1879.<br />
Vol. <strong>VIII</strong>, No. 5 MAY, <strong>1922</strong> 1O Cents<br />
THE <strong>CO</strong>AL STRIKE<br />
In 1919 the bituminous coal min<br />
ers struck and the whole force of the<br />
United States Government was used<br />
against them. As to the states, in<br />
every state where miners were on<br />
strike the state government used<br />
its power to defeat them. Cos<br />
sacks rode them down, police clubbed<br />
them, leaders were put in jail, courts<br />
issued injunctions. The miners were<br />
protesting against reductions of<br />
wages. The public said that they<br />
were wrong and should have gone on<br />
working, content with their lot. If<br />
that attitude could have been held in<br />
the strike of 1919 by some, it cannot<br />
be held by any in this present strike.<br />
In this present situation the mine<br />
owners have openly broken their con<br />
tract of March 30, 1920. They have<br />
refused to confer with the miners on<br />
a new wage scale. By repudiating<br />
their agreement they have defied the<br />
miners and the consumers, and have<br />
made the strike inevitable.<br />
Now comes the interesting revela<br />
tion. In 1919, when the government<br />
could find some shadow of an excuse<br />
to assume that the miners were in<br />
the wrong, it was openly against<br />
them and for the mine owners. But<br />
now, when the miners are absolutely<br />
in the right and the mine owners have<br />
violated every precept of decency,<br />
where does the U. S. Government<br />
VITAL ISSUES<br />
stand ? It goes as far as to administer<br />
a mild verbal expression of disapprov<br />
al to the mine owners, which costs no<br />
body any money, and then maintains<br />
a strict hands-off policy. If the work<br />
ers had been guilty of such flagrant<br />
dishonesty and breaking of contracts<br />
as the mine owners have, the United<br />
States Government would 'have treat<br />
ed them like cattle; and everybody<br />
knows it. But here is a case so fla<br />
grant that even the press, which is<br />
usually against the1 workers, is pretty<br />
generally on the workers' side. The<br />
government is not for the workers;<br />
it is against them.<br />
Undoubtedly public opinion in this<br />
strike will be .strong enough to com<br />
pel the government to take notice1,<br />
and we may expect "hearings," "in<br />
vestigations," and even demands of<br />
settlement imposed upon the mine<br />
owners.<br />
This brings us to a fundamental<br />
fact which every working man should<br />
understand. Government has two<br />
main functions. The first is to keep<br />
itself alive—to perpetuate itself.<br />
The second function is to protect the<br />
privileges of the property-owning<br />
minority. The government will al<br />
ways be found favoring the interests<br />
of property when they come in con<br />
flict with human beings and human<br />
life. The government is the cham<br />
pion of property against labor; and
74 <strong>CO</strong>-<strong>OPERATION</strong><br />
it can pretty generally be expected to<br />
play true to its obligations. The<br />
sooner the working people under<br />
stand these simple facts the sooner<br />
they will proceed to solve this prob<br />
lem, and the less seriously will they<br />
take the antics of the gentry at<br />
Washington.<br />
Now talk is turning to government<br />
ownership of the coal mines. There<br />
is delusion in this proposition. It<br />
may be better than the present sys<br />
tem of ownership and exploitation by<br />
the coal barons (nothing could be<br />
worse); but it does not solve the<br />
problem. What the government owns,<br />
the people do not own. Let us make<br />
no mistaks about this. Under gov<br />
ernment ownership, coal would not<br />
be mined in the interest of the peo<br />
ple, but in the interest of the govern<br />
ment. The people and the govern<br />
ment are two different things. They<br />
always have been been; they always<br />
will be.<br />
The mining and distribution of coal<br />
will not be upon a just and scientific<br />
basis until the consumers own the<br />
mines. And when the consumers<br />
own the mines coal will be mined and<br />
distributed for use—for the service<br />
of the people who are the owners.<br />
The less the government has to do<br />
with it the better it will be for the<br />
people.<br />
WE ARE ONTO GENOA<br />
The conference of Versailles in<br />
1919 assembled the victors of the<br />
War for Democracy. George, Wilson<br />
and Clemenceau had the greatest op<br />
portunity three men ever had to give<br />
the world peace, prosperity and hap<br />
piness. They did just what this mag<br />
azine said they would do. The three<br />
of them acted in perfect accord to<br />
keep alive the hostilities of the world.<br />
There was never a moment of dis<br />
agreement on the main point. They<br />
all insisted on preserving the1 eco<br />
nomic system that makes war neces<br />
sary. Had their avowed purpose<br />
been to perpetuate human injustice<br />
and suffering they could not have hit<br />
upon plans more fitted to that end.<br />
When the generation of childlike and<br />
deluded victims of these three men<br />
has passed away, history will write<br />
them down as betrayers of the simple<br />
and confiding humanity that once<br />
trusted them with its life and honor.<br />
Before we realized the depth of<br />
perfidy to which these men would<br />
sink, this magazine advocated that<br />
Co-operators of all of the countries of<br />
the world should sit at the Versailles<br />
conference. That having been de<br />
nied, we advocated a non-political<br />
world congress of representatives of<br />
the consumers. Finally such a co<br />
operative congress was held at Basel<br />
in 1921. But it was too late to affect<br />
the "peace settlement"; the damage<br />
had been done.<br />
Later came the "Arms Confer<br />
ence" of the victorious Powers, at<br />
Washington. Conditions in Europe<br />
were so bad that something had to<br />
be done to make a showing of getting<br />
the nations together. War and the<br />
costs of the preparations for war had<br />
become so expensive that the bank<br />
ruptcy of all the great militaristic<br />
nations was threatened. The Wash<br />
ington conference of diplomats and<br />
militarists did the best it could. But<br />
thoughtful people did not take it<br />
seriously. This gathering of war-<br />
makers could not be in the interest<br />
of peace. Any treaties that came<br />
out of it could have no power for<br />
peace. But this Washington confer<br />
ence did have one significant result:<br />
It made war cheaper by scrapping<br />
some hundred and twenty floating<br />
relics of barbarous antiquity. Mak<br />
ing war cheaper, however, does not<br />
prevent war; it makes war more pos<br />
sible. The Washington conference<br />
did not take any concern to .scrap the<br />
poison gas outfits. Such an act would<br />
really have interfered with war.<br />
The second thing it did was to<br />
create the "five-power treaty," which<br />
carried with it the right of five for<br />
eign nations to loot the Far East by<br />
agreement.<br />
On the whole, war was brought<br />
nearer by the Washington confer<br />
ence.<br />
The pathetic side of this whole<br />
business is that European Co-opera<br />
tors keep on taking these conferences<br />
seriously. Our esteemed contem<br />
porary, The Co-operative News, was<br />
full of hope for Versailles; and with<br />
childlike credulity ,saw in Washing<br />
ton the hope of the great blessings<br />
that Versailles failed to deliver. Now<br />
it is discussing the international con<br />
ference at Genoa with the same old<br />
British .seriousness, as though the<br />
editor had not an Irish name!<br />
Let Co-operators bear in mind that<br />
the same gentry will go to Genoa as<br />
went to the two other conferences.<br />
They will tolerate the representatives<br />
from Russia because they must.<br />
They may take action looking to the<br />
establishment of better trading re<br />
lations with Russia and Germany for<br />
the sake of saving themselves; but<br />
their 'hands are absolutely tied<br />
against any action that will establish<br />
fundamental economic justice in the<br />
world. The old crew are scuttling<br />
the ship, and they will go down with<br />
it. Co-operators may be invited to par<br />
ticipate in these conferences. But<br />
when they call upon Co-operators it<br />
will be too late to save them. We will<br />
come only to bid them "good-bye."<br />
A new light will be shning in the<br />
heavens.<br />
Simple souls now cry, "On to Ge<br />
noa." Once the refrain was "On to<br />
Versailles," "On to Washington."<br />
Co-operators above all people in the<br />
world should be wise to the great<br />
world tragedy now being played at<br />
these conferences. Co-operators at<br />
least should be onto Genoa!<br />
FOOD FOR THOUGHT AND USE<br />
One of the largest co-operative so<br />
cieties in England was started by<br />
working people who were constantly<br />
made sick by the food they were buy<br />
ing at the private groceries. Finally<br />
when they found that a grocer was<br />
putting plaster of Paris in the flour<br />
and that an old lady nearly died from<br />
eating it, they thought the time had<br />
<strong>CO</strong>-<strong>OPERATION</strong> 75<br />
come to act. From the day they<br />
started their society, the people of<br />
that community have enjoyed better<br />
health.<br />
The co-operative bakeries in Ger<br />
many have a special apparatus for<br />
taking the impurities out of the flour.<br />
The private bakeries do not use this<br />
process at all. What becomes of the<br />
impurities? The co-operative bak<br />
eries cart it away by the truck load;<br />
the customers of the private bakeries<br />
eat it.<br />
Mr. Alfred W. McCann has written<br />
an instructive book entitled, "Starv<br />
ing America." It is pretty hard read<br />
ing for any American citizen who<br />
pays taxes and eats three meals a<br />
day. It either makes him mad or<br />
sick at the .stomach to learn what is<br />
put over on him in this land of free<br />
dom. It makes him sick to read of<br />
the poison the consumer gets for the<br />
glorious sake of profits. One does<br />
not have to think very hard to realize<br />
that he takes his life in his hands<br />
every time he sits down at the table.<br />
Mr. McCann estimated that 3,000,000<br />
people are made ill in this country<br />
every year with adulterated food.<br />
Surprising and unexpected sickness<br />
is always turning up. We are always<br />
hearing of the mysterious cases of<br />
"ptomaine poisoning," "died of acute<br />
indigestion," "intestinal colic," "bo<br />
tulism," "dysentery," "dyspepsia" and<br />
"chronic headache." Emerson knew<br />
it fifty years ago when he said: "It<br />
is only necessary to ask a few ques<br />
tions as to the progress of the arti<br />
cles of commerce from the fields<br />
where they grow, to our houses, to<br />
become aware that we eat and drink<br />
and wear perjury and fraud in a<br />
hundred commodities."<br />
It is the same today. In Money's<br />
book on "Riches and Poverty," he<br />
says: "Sham, shoddy and make-be<br />
lieve—these are erected in the form<br />
of houses, sewed up in the form of<br />
suits, packed in tins to mock child<br />
ren as food, made the sole occupation<br />
of millions of quite honest people."<br />
Dr. Lewis B. Allyn asserts that be<br />
tween eight and fifteen per cent of
76 <strong>CO</strong>-<strong>OPERATION</strong><br />
the food sold is debased. Mr. Gaston<br />
G. Nettes, president of the Interna<br />
tional Pure Food Association, asserts<br />
that 40 per cent of the food entering<br />
New York should be thrown away.<br />
It is humorously related that the<br />
investigation of ten articles in a gro<br />
cery store conducted by the health<br />
authorities, discovered poison in nine<br />
of them: the only one that did not<br />
contain poison was "Radam's Rat<br />
Powder." Be this as it may, there is<br />
every reason to adulterate and de<br />
fraud so long as the motive in .sell<br />
ing to the consumer is to make pro<br />
fits from him. Outside of the con<br />
science of the trader and the busi<br />
ness advantages in selling good foods,<br />
the only thing that stands between<br />
the consumer and slow starvation or<br />
slow poisoning is the law with its in<br />
spectors, fines and prisons. This is<br />
not civilization. A state of society<br />
fit to be called civilization would not<br />
require these utterly unnecessary<br />
things.<br />
That the whole of society, the con<br />
suming public, is at the mercy of pro<br />
fit-making business in the very sub<br />
stances of life, is an unspeakable<br />
tragedy. The great forces of society<br />
that are fighting to maintain these<br />
conditions are the agencies of dark<br />
ness; the light of a better day is in<br />
the hands of those who are striving<br />
to institute the production and distri<br />
bution of food for use.<br />
THE EDUCATED SECRETARY<br />
When the .secretary of a co-opera<br />
tive society, immediately upon his<br />
election, proceeds to educate himself<br />
in Co-operation so that he may un<br />
derstand the subject better, the Move<br />
ment may take heart. On another<br />
page in this magazine is a letter from<br />
the secretary of a society in Rhode<br />
Island in which he expresses this pur<br />
pose, "in order that I may render to<br />
my fellow Co-operators a more effici<br />
ent service." This is fine. Would<br />
that all officers of our societies might<br />
feel this responsibility and move to<br />
grasp the opportunities for larger ser<br />
vice to their fellow men and to them<br />
selves !<br />
Faithful and conscientious officers<br />
are necessary to success. But above<br />
all, they must understand Co-opera<br />
tion. Not only has our Movement a<br />
philosophy and a glorious history,<br />
but it has a technic which must be<br />
understood and mastered in order to<br />
win success. Success can be guaran<br />
teed by education. It is .such men as<br />
this secretary who are winning the<br />
success for Co-operation in the United<br />
States.<br />
MAKING THE PICTURES<br />
The job of The Co-operative League<br />
in the United States is to make Co<br />
operation succeed. The first import<br />
ant thing is that the people shall<br />
know what Co-operation looks like<br />
when they see it.<br />
Once upon a time a little girl was<br />
drawing a picture. Her mother asked<br />
her what she was drawing. "God,"<br />
replied the child. "But," said the<br />
mother, "you can not make a picture<br />
of God; nobody knows how God<br />
looks." "Well," replied the child,<br />
they will when I get this picture fin<br />
ished."<br />
The people in this country may not<br />
have seen Co-operation. They may<br />
not know how it looks or how it should<br />
look. But The League is going to<br />
keep at its task of making a picture<br />
and visualizing true Co-operation un<br />
til all shall know it when they see it.<br />
THE LEAGUE'S SCHOOL<br />
In the April number of this maga<br />
zine was published the schedule of<br />
the first course of lectures to be giv<br />
en in the Co-operative League House,<br />
beginning May 2d. All of the ar<br />
rangements are completed. The open<br />
ing of the new building with this<br />
course of lectures is another indica<br />
tion of the progress of co-operative<br />
education in the United States.<br />
Steadily, without haste, but without<br />
ceasing, the fundamental work is be<br />
ing done.<br />
<strong>CO</strong>-<strong>OPERATION</strong> 77<br />
SEEN HERE AND THERE<br />
The Fate of a Building Guild<br />
In Kittering, England, was a guild<br />
of builders. It took contracts to<br />
build houses. When the town built<br />
a library about twenty years ago the<br />
guild got the contract. But it lost<br />
so much money on the job that it<br />
had to go out of business. To save<br />
it, the Kittering Consumers' Co<br />
operative Society "took it over."<br />
The society created a building de<br />
partment in order to give these men<br />
employment. In 1901 it bought a<br />
farm estate adjoining the town for<br />
$50,000, and set its builders to<br />
work building houses. The society<br />
put up 180 houses and sold them to<br />
its members at cost. It retained a<br />
few to rent to members. These are<br />
rented for $2.50 a week net.<br />
This building department 'has<br />
been in operation ever since. The<br />
Superintendent is paid $2,000 a<br />
year. There are seventy artisans,<br />
representing all of the building<br />
trades. The society keeps them<br />
busy.<br />
This society is practically the<br />
whole town. When anybody wants<br />
a carpenter, mason, or plumbing<br />
work done he employs the society<br />
to do it. The municipal political<br />
government and profit business are<br />
fading out. The Co-operative So<br />
ciety is taking their place.<br />
Savings-Return or No<br />
I heard the question of paying a<br />
savings - return discussed at the<br />
Carlsbad Congress of German<br />
Czecho - Slovak Co - operative Socie<br />
ties in August, 1921. Some dele<br />
gates were in favor of paying a<br />
good dividend. They said that if<br />
the members can buy cheaper from<br />
private stores they do so and leave<br />
the society; but a savings-return<br />
would hold them. On the other<br />
hand, it was shown that, although<br />
in 1919 the societies paid a savings-<br />
return of 4 per cent, when in 1920<br />
they paid only 2 per cent, in that<br />
year they not only did not lose mem<br />
By J. P. W.<br />
bers, but they gained members. The<br />
members know the co-operative<br />
goods are better, and therefore<br />
cheaper. Being guaranteed good<br />
goods, and knowing that they are<br />
connected with a great Movement<br />
for human betterment amounted to<br />
more than a little dividend.<br />
During the war these societies<br />
acquired an enormous membership,<br />
"who are in no sense of the word Co-<br />
operators," said the speaker. "They<br />
joined because the societies could<br />
serve them better than anybody<br />
else. They will go out if we do not<br />
continue to serve them better—or<br />
unless we can convert them into Co-<br />
operators."<br />
It is interesting to note how all<br />
questions in Co-operation finally<br />
come back to the big question of the<br />
need of education in the real mean<br />
ing and objects of Co-operation.<br />
The Belgian Co-operators and the Was-<br />
The Belgian Co-operators had<br />
some interesting experiences with<br />
the invaders of Belgium during the<br />
war. When the Germans came into<br />
Ghent the German General Staff<br />
looked around for the best building<br />
for their headquarters, and picked<br />
the Co-operative Festal Palace. It<br />
is a beautiful new building, opened<br />
in 1914, with two large auditoriums,<br />
restaurant and meeting halls. The<br />
Ghent Society had to move out of it.<br />
They organized their moving picture<br />
show in another building nearby.<br />
The German officers used to stroll<br />
down to the show every night, and<br />
the Co-operators always gave them<br />
some good, shocking propaganda.<br />
There has been a lot of publicity<br />
given to the deportation of Belgians,<br />
but there is one side of the matter<br />
that most people do not know about.<br />
The deportees were largely people<br />
who were being penalized for hav<br />
ing a social conscience. The Bel<br />
gians who were deported were<br />
mostly Socialist Co-operators. The<br />
deportations were made largely
78 <strong>CO</strong>-<strong>OPERATION</strong><br />
from that district that had 90 per<br />
cent Socialist votes. These people<br />
were the most dangerous to leave in<br />
Belgium. They were the people<br />
who were most capable of influenc<br />
ing the German soldiers not to fight.<br />
They were sent to Germany really<br />
for the purpose of getting them out<br />
of Belgium and out of contact with<br />
the German soldiers. In Germany<br />
they suffered severely. For their<br />
refusal to work they were badly<br />
treated; and now they are still bit<br />
ter against the Germans, while the<br />
Belgian farmers, who made money<br />
selling their produce at big prices to<br />
the German army, are prone to<br />
speak in more approving terms of<br />
their old enemy.<br />
When the German army evacu<br />
ated Belgium the Co-operative So<br />
ciety of Brussels celebrated by<br />
hanging out forty red flags on its big<br />
building and one Belgian flag. This<br />
made the patriotic Belgian 100<br />
per centers mad, and they have not<br />
forgiven the Co-operators yet.<br />
As a result of the excitement of<br />
the war, Anselle, the "Father of Bel<br />
gian Co-operation," got elected to<br />
Parliament. He knew that there<br />
was not much to be done in the po<br />
litical field, but he used his position<br />
very efficiently for co-operative<br />
propaganda. As he said to me: "I<br />
Lehighton, Pennsylvania, is a<br />
small railroad town in the Lehigh<br />
Valley, between Wilkes-Barre and<br />
Allentown. The Lehighton Co<br />
operative Association, a society 95<br />
per cent railroad men, was hitched<br />
up with the ill-fated "National Co<br />
operative Association" that went<br />
bankrupt in 1920. Early in 1921<br />
the little association in Lehighton<br />
found itself stripped of the $11,000<br />
capital with whic'h it had started<br />
business; the stock of goods in the<br />
store was worth only $2,600, the<br />
receivers for the Hoboken fiasco<br />
A STORY IN <strong>CO</strong>AL<br />
By CEDRIC LONG<br />
make speeches out of the window;"<br />
that is, he talked to the people of<br />
Belgium instead of to the Parlia<br />
ment.<br />
Whatever the war did to Belgium,<br />
it ended with a bigger and stronger<br />
Co-operative Movement than had<br />
existed before.<br />
Another effect of the war was on<br />
trade unionism. In 1914 the trades<br />
unions had 160,000 members; in<br />
1921 the membership was 730,000.<br />
In 1914 the Catholic unions had<br />
80,000 members; in 1921 they had<br />
140,000 members.<br />
War, if it does bring the exploit<br />
ers of the people to the top, at least<br />
exposes the wiles of the exploit<br />
ing system, and prompts the people<br />
to know that they must get together<br />
to protect themselves.<br />
No Credit<br />
The chairman of the board of<br />
directors of an English co-operative<br />
society said to me: "We will not<br />
give credit; we would sooner give<br />
the member the money outright<br />
than to give credit." As a result of<br />
this policy the society has so much<br />
money in its treasury that when un<br />
employment comes it is glad to have<br />
members draw out some of it. They<br />
spend it with the store, and so in<br />
crease the turnover.<br />
were suing them for the debts of<br />
the wholesale, and the majority of<br />
their members had lost confidence<br />
in the Co-op, and were trying to<br />
find a method of getting back some<br />
of the money they had invested.<br />
Co-operation in Lehighton looked<br />
like a 100 per cent lost cause.<br />
But there were two assets that<br />
these 385 shareholders and the rest<br />
of the town had not figured on. The<br />
store had a live young manager who<br />
not only knew the grocery business<br />
from several years of experience in<br />
the chain stores, but who likewise<br />
was a thorough Co-operator at<br />
heart. And the directors of the as<br />
sociation, under the leadership of<br />
W. D. Hontz, Wm. Begal, Wm. Smo-<br />
yer and the other officers, were men<br />
who refused to acknowledge that a<br />
discouraged membership, the loss<br />
of their capital, and a lawsuit meant<br />
bankruptcy. Therefore, business<br />
went on as usual.<br />
But "business as usual" did not<br />
satisfy such men very long. A bold<br />
step forward was necessary if Co<br />
operation in Lehighton was to win<br />
back its lost prestige. And here<br />
begins the story in coal.<br />
There are three or four coal deal<br />
ers in this town. They all waxed fat<br />
off the coal business. Therefore the<br />
directors of the co-operative began<br />
to investigate, and they found that<br />
the coal consumers were being<br />
robbed.<br />
The Lehigh Valley Coal Com<br />
pany and other large companies re<br />
fused to sell them coal. The men<br />
from Lehighton tanked up their<br />
Fords with more gas, began a sys<br />
tematic tour of the coal fields, and<br />
finally came upon a little independ<br />
ently owned colliery, where the di<br />
rectors were already assembled to<br />
decide whether they had not better<br />
shut down for lack of business. The<br />
two directorates, one looking for a<br />
customer, the other looking for coal,<br />
talked business, and soon came to<br />
an agreement.<br />
How do you start in the coal busi<br />
ness without capital? These men<br />
did not bother with such abstract<br />
questions; they met in turn each<br />
difficulty as it came along. Having<br />
ordered one car of coal, a few of the<br />
Co-operators signed personal notes<br />
at the bank and paid for the car.<br />
Having no place to put their coal,<br />
they went to a fellow townsman<br />
who owned a plot of land near a<br />
railroad siding, and bought the land<br />
for a promise of future payment.<br />
Then, with cement and sand and<br />
stone, and all the volunteer labor<br />
they could use (railroad men get<br />
long vacations and have much leis<br />
<strong>CO</strong>-<strong>OPERATION</strong> 79<br />
ure time these days) they built four<br />
large, open bins near the siding. A<br />
portable elevator which would carry<br />
the coal from the car into the bins<br />
and from the bins into a truck, was<br />
procured, just as the coal had been,<br />
by a small note and easy payments.<br />
Meanwhile the freight question<br />
came up. Lehighton is a Lehigh<br />
Valley town. Yet all the coal sold<br />
there was being brought in over the<br />
N. J. Central. The Co-operators<br />
went to the freight agent of the<br />
Lehigh Valley. "We're workers on<br />
the L. V. R. R. We are buying coal<br />
and we want to bring it in over our<br />
own road. What can you do for<br />
us?" The agent gave them a low<br />
freight rate, and a few days later<br />
the same railroad company sent<br />
around a man who offered them coal<br />
scales at cost, to be paid for as soon<br />
as the money was available.<br />
And so started the Co-operative<br />
coal business April, 1921. The pri<br />
vate dealers had been selling 2,000<br />
pounds to the ton. The new dealers<br />
sold 2,200 pounds to the ton. The<br />
private dealers had been making<br />
more than $4 a ton profit. The Co-<br />
operators lowered the price be<br />
tween $2 and $3, gave the custom<br />
ers the extra 200 pounds, to which<br />
they were entitled, sold the highest<br />
quality coal instead of the mixture<br />
of slate, dirt and coal that others<br />
sold, and altogether saved the con<br />
sumer about $4 on every ton of coal<br />
bought.<br />
By the end of the year the Co<br />
operative Association had sold 97<br />
carloads (4,200 tons) of coal, they<br />
had paid for the elevator, owed<br />
nothing to the bank, owned their<br />
own land, their own bins, and had<br />
paid off one-third of the value of<br />
their new coal truck. The inde<br />
pendent coal company up country<br />
had given up all thought of closing<br />
their colliery, and many of the other<br />
coal companies in the same district<br />
had come around trying to sell coal<br />
to the Co-operators they once de<br />
spised. Two men are employed reg<br />
ularly getting coal to the customers,
80 <strong>CO</strong>-<strong>OPERATION</strong> <strong>CO</strong>-<strong>OPERATION</strong> 81<br />
and the Co-operative Association is<br />
doing the largest coal business in<br />
town (more than 10 cars a week on<br />
the average). The Association has<br />
saved the people of Lehighton over<br />
$14,000 by reducing the price and<br />
giving the long ton.<br />
So begins the story. But Co-oper<br />
ation never stops at one commodity.<br />
A few weeks ago these same Co-<br />
operators decided that milk at 14<br />
cents was much too expensive for<br />
their town. They called a meeting<br />
and talked about starting in to dis<br />
tribute milk. Next day the private<br />
milk dealers, seeing the Co-opera<br />
tive coal truck rushing about town,<br />
decided to take the warning, and<br />
milk dropped to 12 cents.<br />
A few weeks later the Co-opera<br />
tors decided that they wouldn't<br />
charge 13 cents for bread which<br />
cost them only 10 cents. They sold<br />
at 11 cents. The baker threatened<br />
to deprive them of bread altogeth<br />
er; and he was the only baker deliv<br />
ering in Lehighton. But the Co-<br />
operators refused to heed the threat,<br />
kept the price at 11 cents, and when<br />
this baker stopped his delivery to<br />
them they imported bread from Al-<br />
lentown—and still sold at 11 cents.<br />
Furthermore, they promise that if<br />
the old baker ever comes back, he<br />
will not be able to get into the store!<br />
When the representative of The<br />
Co-operative League stopped at Le-<br />
highton and went to the store he<br />
found many of the directors and<br />
several of the other members busy<br />
out beside the garage. They were<br />
just nailing the last boards up<br />
against some fifty tons of ice. Last<br />
year the private ice dealers charged<br />
the store $300 for ice; this year the<br />
members hauled and stored their<br />
own ice, and the total expense was<br />
less than $70.<br />
Meanwhile, the store is holding<br />
its own, despite hard times, and al<br />
though unemployment has played<br />
havoc with its business, there is a<br />
slight saving each quarter. The<br />
surplus-saving from the first nine<br />
months of the coal business amount<br />
ed to $4,347.26.<br />
None of the banks in Lehighton<br />
is paying more than 3% or 4 per<br />
cent interest this last year, and the<br />
First National paid no interest what<br />
ever. The Lehighton Co-operative<br />
Association, meanwhile, paid 6 per<br />
cent. For, although their $11,000<br />
original capital was all lost (except<br />
a scant $2,600), their membership<br />
was quite disgusted with the whole<br />
co-operative business, and such<br />
other liabilities as lawsuits, united<br />
opposition of other merchants and<br />
chain stores, etc., had reduced their<br />
workingmen's organization to a<br />
laughing - stock about town, yet<br />
there still remained the solid foun<br />
dation stones upon which true Co<br />
operation is always builded, and<br />
which make failure impossible; effi<br />
cient and devoted management on<br />
the business side, and determined,<br />
wise, self-sacrificing leadership on<br />
the part of the directors. Financial<br />
liabilities never interfere with the<br />
growth of a Co-operative organiza<br />
tion which has these two assets.<br />
THE PURITY OF PATERSON<br />
Paterson, New Jersey, has 136,000<br />
population. It is the home of one of<br />
the most successful Co-operatives in<br />
the East. In the city which has been<br />
the battleground of many spectacular<br />
industrial struggles between the silk<br />
mill owners and the workers, where<br />
labor has been beaten time and again<br />
in the attempt to better its conditions<br />
at the point of production, a remark<br />
able organization of consumers has<br />
been perfected, which has won much<br />
ground in its steady fight against the<br />
profit system. Two thousand con<br />
sumers are members and owners of a<br />
Co-operative society that is supplying<br />
$250,000 worth of bread and $100,000<br />
worth of meat yearly, to the consum<br />
ers of Paterson and vcinity. The<br />
three auto trucks of the Purity Co<br />
operative Society daily deliver bread<br />
to towns within a radius of many<br />
miles of Paterson, while two wagons tiling. Sanitary chicken coops are<br />
make deliveries in the city. Hun bult into the building, as the tem<br />
dreds of miles are daily covered by porary abode of the many live chick<br />
the vehicles of the society.<br />
ens kept on hand to be slaughtered<br />
A visit to this co-operative society for the kosher trade.<br />
stuns one with the size of the un The conditions of labor are import<br />
dertaking. The bakery of the Purity ant. Forty-two butchers and bakers<br />
Co-operative Society is a large, up-to- are employed at the union scale of<br />
date three-story plant, equipped with wages. The weekly wage bill amounts<br />
the latest machinery. The Co-opera to $1,600. The bakery is run In<br />
tive is the next to the largest bakery shifts, but no one works more than<br />
in Paterson; its property and equip eight hours a day. Though bakeries<br />
ment are worth $150,000. The great are usually sweat-shops, the co-opera<br />
double ovens daily bake 5,000 loaves tive bakery is sanitary and an ideal<br />
of bread, and 24,000 rolls. Gigantic workshop. A shower bath is provid<br />
machines automatically weigh, sieve ed for the workers' use at the end of<br />
and mix 500 pounds of flour at a their shift.<br />
time. The ovens are located on the Since current prices are charged in<br />
first floor, the mixing machinery on most departments, a large surplusthe<br />
second floor, and the third floor saving is on hand at the end of each<br />
is used as the storeroom for flour. year. It is interesting to note what<br />
When a representative of The use has been made of this. When the<br />
League visited the plant there were society was organized in 1905, it sold<br />
thousands of bags of flour piled up in goods at cost price, plus a slight over<br />
orderly fashion all over the huge head charge. Whatever remained<br />
storeroom. There were a dozen car was set aside for the growth of the<br />
loads of flour on hand), valued at enterprise. By this means, the co<br />
$22,000. The co-operative bakery operative's resources have grown, un<br />
consumes a carload of flour every til they are now worth $175,000,<br />
week. Flour is secured direct from though it has only $8,000 subscribed<br />
the mills, and the co-op, gets the bene in capital stock. During the war, the<br />
fit of all discounts by paying cash. Federal Food Control Board compelled<br />
The bakery distributes its product the co-operative bakery to sell at the<br />
direct to consumers by means of prices charged by the profiteering<br />
house to house deliveries, and through bakers. This compelled the co-opera<br />
sales at its bakery. A branch store tive to adopt the Rochdale system, in<br />
is maintained, where bread and gro order to return the difference be<br />
ceries are sold. The bulk of the tween cost and selling price to its con<br />
trade, however, is through sales to sumers. Coupons were printed on the<br />
retail stores, both private and co bread wrappers, and these coupons<br />
operative, in Paterson and outlying were redeemable at the end of the<br />
towns. Profiteering by stores is pre year.<br />
vented by the bakery, which fixes the The members of the society were<br />
selling price of bread. True to its not long content with this arrange<br />
name, the co-operative turns out the ment. They felt that the money<br />
purest of products.<br />
saved through their co-operative en<br />
In addition to its model bakery, the terprise should be used for the social<br />
Purity Co-operative Society operates good, instead of being distributed<br />
the cleanest, and perhaps the largest back to the consumers as savings-re<br />
butcher shop in town. The turnover turns. Knowing of the social and ed<br />
of the butcher shop last year was ucational activities carried on by the<br />
$90,000; and this year it is doing bakeries in Belgium, they resolved to<br />
business at the rate of $100,000. A put the earnings of the society to<br />
glance at the shop reveals a scrupul work for the good of all the members.<br />
ously clean store, lined with spotless Accordingly they abolished the "divi-
82 <strong>CO</strong>-<strong>OPERATION</strong> <strong>CO</strong>-<strong>OPERATION</strong> 83<br />
dend system" at the end of 1921, and<br />
they now plan to invest the earnings<br />
in a large vacation farm where the<br />
children of the members may enjoy<br />
a vacation of two weeks, with good<br />
food, air and sunlight, free of charge.<br />
The enormous bakeries of Belgium,<br />
with their educational, recreational<br />
and insurance activities radiating<br />
from them, are thus being used as a<br />
model by the Paterson Co-operators.<br />
The story of this society is not<br />
complete without some mention of its<br />
educational activities. Last year $1,-<br />
000 was contributed towards educa<br />
tional work. On April 7th, of this<br />
year, the first public mass meeting<br />
of a series of several scheduled, was<br />
held by the society in the auditorium<br />
of one of the high schools. Over 800<br />
people were present. Cedric Long,<br />
of The Co-operative League, William<br />
Kraus of the Bergenfield, N. J., co<br />
operative society, and Abraham Ship-<br />
lacoff, President of the Brownsville<br />
Co-operative Bakery, of New York,<br />
spoke before an enthusiatic audience<br />
on the meaning of Co-operation.<br />
The co-operative society is the nuc<br />
leus of all the forward-looking groups<br />
in Paterson. There has not been a<br />
strike in Paterson since 1905 that<br />
has not been supported whole-heart<br />
edly by the co-operative bakery. Only<br />
last month, three tons of flour were<br />
donated by the Purity Co-operative<br />
Society to the mill strikers of Rhode<br />
Island.<br />
"What is everybody's business is<br />
nobody's business," says the cynic<br />
who is opposed to collectivism in any<br />
form. But the two thousand mem<br />
bers of this co-operative society are<br />
the driving and directing force be<br />
hind this vast enterprise. They elect<br />
their officers, and at their quarterly<br />
meetings, they fix the policies that<br />
govern their business. Two Boards<br />
of Directors are elected by the mem<br />
bership; one for the management of<br />
the bakery, and the other for the<br />
butcher shop. The efficient and loyal<br />
manager, Simon Rothman, is a valu<br />
able servant of the society. Group<br />
solidarity and the technique of indus<br />
trial democracy are being developed<br />
by means of this co-operative enter<br />
prise, which is slowly but surely dis<br />
placing private business in Paterson.<br />
N. Y. CREDIT UNIONS UNITE<br />
The New York State Association of<br />
Credit Unions was formed in 1921, in<br />
recognition of a need of a representa<br />
tive body which would act as a clear<br />
ing house for the discussion of prob<br />
lems aggravated by the steady in<br />
crease in the growth of credit unions<br />
in New York City. Its object is (1)<br />
to spread the doctrines of the credit<br />
union movement more generally a-<br />
mong the public, (2) to furnish a<br />
forum for discussion of problems of<br />
mutual interest to its members, (3)<br />
to study proposed and to prepare<br />
needed legislation affecting the credit<br />
union movement, (4) to bring the or<br />
ganizations in the State of New York<br />
into closer relations with each other,<br />
(5) to foster measures looking to the<br />
organization of a central credit union,<br />
and (6) to do any and all things which<br />
may be of benefit to credit unions.<br />
The union is beginning to function<br />
actively through its especially ap<br />
pointed committees. The Legislative<br />
Committee will, at the next general<br />
meeting, submit a report on suggest<br />
ed amendments to the New York<br />
State Credit Union Law. The Pub<br />
licity Committee, with a view to<br />
spreading the growth of credit<br />
unions, is canvassing various groups<br />
in New York City where the organi<br />
zation of credit unions is considered<br />
feasible. If the results warrant it<br />
there will be a systematic effort to<br />
follow up the correspondence by per<br />
sonal contacts. The Advisory Com<br />
mittee is compiling an accounting sys<br />
tem and interest tables for which<br />
there is an urgent need.<br />
PRACTICAL ADVICE<br />
ARRANGEMENT OF THE STORE<br />
Make the entrance easy. Keep<br />
the windows clean and attractive,<br />
and display goods in an uncrowded<br />
manner. Change the display each<br />
week. Limit the display to six<br />
lines, three large and three small.<br />
A bold center is attractive. Use<br />
price tags and smart descriptive<br />
signs. Do not dress too close to<br />
window glass. If the window is<br />
high, fix a sign below it outside or<br />
a bulletin board on which you can<br />
advertise daily any specials you<br />
may have. Fix a ringed curtain<br />
of bright material on a rod four<br />
or five feet from the door of the<br />
window, if there is one. In the case<br />
of a high window a strong shelf<br />
might be fixed above the curtain rod<br />
for a display. Do not keep out the<br />
light from the store by high stacks<br />
of things in the window.<br />
No set rules can be laid down for<br />
the arrangement of goods, but usu<br />
ally the goods that are wanted by<br />
the largest number of customers are<br />
placed on shelves near the front.<br />
Cereals should be on top shelves,<br />
soaps, etc., on bottom. Salt, sugar,<br />
etc., should be \y2 feet above the<br />
floor. Canned goods and bottled<br />
goods may be on the middle shelves.<br />
Keep fruits, vegetables, soups and<br />
other canned goods together. Dairy<br />
goods should always be in a sepa<br />
rate department. Fancy and staple<br />
articles may be near the front or on<br />
special tables near the front for dis<br />
play. Put slow movers on a special<br />
table in the center, and change fre<br />
quently. Systematic arrangement<br />
prevents confusion and untidiness.<br />
Aim to make the store the most at<br />
tractive in town. Goods s'hpuld be<br />
plainly priced. Sectional price tags<br />
are useful.<br />
The shelving should be no more<br />
than 6 feet high to make it easy to<br />
reach goods. If possible have the<br />
shelves deep enough to take a whole<br />
case of goods. Fixtures should be<br />
simple, but good, serviceable and<br />
kept clean. The scales and cash<br />
register are best near the center of<br />
the store. Bulk goods should be<br />
kept under the shelves or counters<br />
near the scales. Some stores use<br />
racks in the center, made of several<br />
shelves, if crowded for space. If<br />
house furnishings are kept they<br />
should be in one part by themselves.<br />
The store room must be well or<br />
ganized. If possible make similar<br />
arrangements of goods as in store<br />
itself. Do not leave broken cases<br />
around in store room.<br />
If you have any extra space use it<br />
for advertising purposes for co<br />
operative mottoes, and do not waste<br />
a bit of space. Have a bulletin<br />
board in a conspicuous place for<br />
special notices and news items. A<br />
table for literature and a few chairs<br />
are desirable.<br />
SOUND ADVICE FROM THE<br />
CANADIAN UNION<br />
I note that many isolated societies<br />
in your country have been failing<br />
during the last six or eight months.<br />
Many years' experience of co-oper<br />
ative activities in this country has<br />
taught me that if societies do not<br />
associate for mutual counsel and<br />
profit by the experienc'e of their<br />
predecessors, it is hopeless to ex<br />
pect satisfactory development. Our<br />
great trouble is in bringing home<br />
this fact to people responsible for<br />
the administration of co-operative<br />
societies. This remark applies not<br />
only to those outside the organized<br />
movement, but even to some inside.<br />
In some cases boards of directors<br />
persist in blundering on, but make<br />
a practice of approaching us when<br />
they are in trouble, when we are<br />
then expected to work miracles.<br />
Doubtless you have noticed that<br />
at the Congress of the Canadian so<br />
cieties last year the delegates were<br />
determined upon satisfactory busi<br />
ness policies being followed, and<br />
that central supervision should be<br />
exercised. Now, the Union is ask-
84<br />
ing for monthly reports which are<br />
being summarized and circulated<br />
the following month, with informa<br />
tion, which may be contributed by<br />
any society, of general advantage.<br />
We are hoping that to become ac<br />
quainted with weak spots as they<br />
arise and make representations<br />
thereon before losses accumulate.<br />
My feeling is that one of the<br />
greatest stumbling blocks to co<br />
operative solidarity is the non-co<br />
operative manager who seeks to<br />
dominate his board and is jealous of<br />
influence being exercised by the<br />
Union upon his directors; and yet<br />
it is in such cases that independent<br />
guidance, advice and information is<br />
most needed if the society is perma<br />
nently to remain in the field.<br />
In the early days in the Move<br />
ment in Europe many serious mis<br />
takes were made, but Co-operators<br />
had the common sense to profit by<br />
their experience and endeavor to<br />
avoid them in the future. There<br />
would seem to be a serious defi<br />
ciency of this policy in North<br />
America. It seems very necessary<br />
on this continent to impress upon<br />
would-be Co-operators in the early<br />
days how little they know and how<br />
much they have to learn in applying<br />
the principles to which they are be<br />
coming attached.—George Keen,<br />
General Secretary the Co-operative<br />
Union of Canada.<br />
A BADLY ADVISED RAIL<br />
BROTHERHOOD<br />
The United Brotherhood of Main<br />
tenance of Way Employees and Rail<br />
way Workers, with headquarters in<br />
Detroit, was put in the hands of a re<br />
ceiver by order of the Federal Court<br />
according to advices recently receiv<br />
ed. An order restraining the Broth<br />
erhood from withdrawing its bank<br />
deposits has been issued. The re<br />
ceiver has been ordered by the Court<br />
to take possession of all property of<br />
the Brotherhood including the money<br />
on deposit in the Brotherhood of Lo<br />
comotive Engineers' Bank at Cleve<br />
<strong>CO</strong>-<strong>OPERATION</strong><br />
land. This is a part of the sad story<br />
of one of the railroad unions that<br />
went into what it called "co-opera<br />
tive" production. This magazine has<br />
already reported the failure of its<br />
various factories for the manufacture<br />
of gloves, underwear and hosiery.<br />
Liberal magazines and socialist publi<br />
cations found great satisfaction in<br />
these ventures into manufacturing<br />
and gave them much approval and<br />
publicity as great "co-operative un<br />
dertakings." The Brotherhood had<br />
an exhibition of its products at the<br />
"Farmer Labor Co-operative Con<br />
gress" in Chicago in 1920, and their<br />
representatives were among the cen<br />
tres of interest.<br />
The one and only voice that ad<br />
vised this Brotherhood of its mistakes<br />
was the Executive Board of The Co<br />
operative League. It went so far as<br />
to have a representative of the Board<br />
secure an interview with the promo<br />
ting officials of the Brotherhood at<br />
Chicago and again at Syracuse, N. Y.,<br />
to explain to them that the venture,<br />
which they were calling "co-opera<br />
tive," was not co-operative, to warn<br />
them of its defects and to show them<br />
how they might make it succeed. But<br />
since all of the labor, socialist and re<br />
form papers, and organizations were<br />
boosting their plan, they turned a<br />
deaf ear to The Co-operative League.<br />
The losses to this one union amount<br />
to something around $1,500,000, an<br />
other "co-operative failure" was reg<br />
istered, and now as a result, the whole<br />
organization suffers the humiliation<br />
of having its tangible assets attached<br />
by a court order.<br />
We still continue of the opinion<br />
that, as there is an organization of<br />
experts such as The League provides,<br />
whose business it is to know about<br />
the technic of co-operative adminis<br />
tration, their advice should be sought.<br />
But when in the interest of the work<br />
ers we are compelled to force our ad<br />
vice upon an enterprise, calling itself<br />
"co-operative," that enterprize will<br />
do wisely to give most serious consi<br />
deration to that advice.<br />
<strong>CO</strong>-OPERATIVE BAKERIES FEED<br />
STRIKERS<br />
The co-operative bakeries of<br />
Massachusetts have made provisions<br />
for supplying bread free of charge<br />
to the striking textile workers of<br />
Pawtucket Valley, Rhode Island, to<br />
carry on their struggle against star<br />
vation as long as their fight lasts.<br />
Three months ago the absentee<br />
owners of the cotton mills of Rhode<br />
Island decreed a 54-hour week and<br />
a 20 per cent reduction in wages, on<br />
top of a previous reduction of 22 V&<br />
per cent. There seems no alterna-<br />
ive for the workers but to leave<br />
their looms as a protest against<br />
starvation wages.<br />
At once the co-operative bakeries<br />
in Massachusetts got busy. Two<br />
thousand loaves of bread were do<br />
nated by The Labor League Co<br />
operative Bakery of New Bedford,<br />
Mass. Then the Conference of<br />
Massachusetts Co-operative Baker<br />
ies swung into action. The confer<br />
ence is a working federation of<br />
seven prosperous co-operative bak<br />
eries, organized principally among<br />
the Jewish consumers of Massachu<br />
setts, though they are open for all<br />
consumers to join.<br />
Provisions were made by the Con<br />
ference for a contribution to the<br />
strikers of a steady supply of bread<br />
baked in the bakeries of the co<br />
operatives. The New Bedford Co<br />
operative Bakery is supplying 2,000<br />
loaves each week, the Brockton<br />
bakery 1,000, the Worcester bak<br />
ery has already sent 500 loaves, and<br />
will send more, the Providence bak<br />
ers sent 1,000 loaves, and the co<br />
operative bakeries of Lynn, Haver-<br />
hill and Lawrence are all giving<br />
their share. Contributions secured<br />
among the Jewish consumers in<br />
Providence, Boston and New Bed<br />
ford, in order to enable the co-oper<br />
ative bakeries to turn out sufficient<br />
bread for the strikers.<br />
From Paterson, N. J., came 500<br />
bags (three tons) of flour, as a do<br />
<strong>CO</strong>-<strong>OPERATION</strong> 85<br />
NEWS AND <strong>CO</strong>MMENT<br />
nation from the Purity Co-operative<br />
Bakery. This baitery has also sup<br />
plied twelve cases of canned soup.<br />
Besides the thousands of mill<br />
strikers in New England who are<br />
now being supplied bread free of<br />
charge by the co-operative bakeries<br />
of the workers, the Conference of<br />
Co-operative Bakeries of New Eng<br />
land is also sending a carload of<br />
flour for famine relief in Russia.<br />
A vigorous program of co-opera<br />
tive education is going forward.<br />
Educational meetings are held bi<br />
monthly. Arrangements are being<br />
made for literature, speakers, and<br />
movies to be supplied by The<br />
League.<br />
Newspapers in Massachusetts<br />
have given much publicity to the<br />
relief work of the co-operatives.<br />
Photographs of the many truck<br />
loads of bread sent to the strikers<br />
by the co-operatives have appeared<br />
in the metropolitan press. Through<br />
the relief work carried on by the<br />
co-operative bakeries, many con<br />
sumers are learning the value of Co<br />
operation, both as a commissary<br />
during strikes, and as a means of<br />
eliminating profit in the supply of<br />
the necessities of life.<br />
UTICA BAKERY GROWS<br />
The Utica Co-operative Society, of<br />
Utica, New York, made progress dur<br />
ing the past year, though it felt the<br />
pinch of hard times. The sales for<br />
1921 were $105,597, or a decrease of<br />
$12,000 over the sales of the previous<br />
year. But retail prices fell at least<br />
30 per cent during 1921, so that even<br />
though the value of sales fell off, the<br />
amount of business done was larger.<br />
There was a surplus-saving of $2,021<br />
for the year's operations, which was<br />
distributed to the 375 members as in<br />
terest on shares. A reserve and edu<br />
cational fund were also put aside.<br />
The most encouraging thing about<br />
the Utica Society is the steady<br />
growth of its bakery business. In<br />
January, 1921, its bakery sold 13,281
86 <strong>CO</strong>-<strong>OPERATION</strong><br />
loaves of bread. The demand for Co<br />
op. Bread grew steadily, until in June<br />
they were selling 25,319 loaves. By<br />
the end of the year, the monthly sales<br />
were 28,774 loaves. In all, 156,643<br />
loaves of Co-op Bread were distri<br />
buted in 1921.<br />
The society owns $41,540 worth of<br />
real estate; owns machinery and fix<br />
tures valued at more than $7,000, and<br />
has $15,000 worth of goods in stock.<br />
<strong>CO</strong>-OPERATIVES AND THE BUSI<br />
NESS DEPRESSION<br />
Reports coming in from all over<br />
the country indicate that co-opera<br />
tives are weathering the financial<br />
storm that has brought bankruptcy<br />
for many private businesses. While<br />
general business bankruptcies, ac<br />
cording to R. G. Dun & Co., in<br />
creased 141 per cent during the first<br />
half of 1921, as compared with the<br />
same period of 1920, there does not<br />
seem to be any sign that co-opera<br />
tives are as hard hit as profit-mak<br />
ing business.<br />
Here are three bits of news reach<br />
ing the office of The League the<br />
same day, from three different sec<br />
tions of the country, showing how<br />
Co-operation is holding its own.<br />
From L. S. Herron, of the Farmers'<br />
Educational and Co-operative Union<br />
of Nebraska, comes this comment:<br />
Our Farmers' Union stores are mostly<br />
pulling through all right, though many of<br />
them are burdened with debt. There have<br />
been only two or three outright failures<br />
in the whole state among the 125 stores.<br />
Some of the stores have gone right through<br />
the depression without losing a dollar, and<br />
even making good surplus-savings all the<br />
time. Loyal patronage and good manage<br />
ment will turn the trick anywhere.<br />
At the same time David Diggory,<br />
Secretary of the Society in Pueblo,<br />
Colorado, which is doing good edu<br />
cational work among its member<br />
ship, writes us as follows:<br />
We are doing as fine as can be expected.<br />
We are holding our regular weekly meet<br />
ings and they are productive of good re<br />
sults. We feel sure of the ultimate end.<br />
From Little Rock, Arkansas, we<br />
learn from L. W. Lowry, the Man<br />
ager of the Co-operative Laundry:<br />
We are doing better than the other fel<br />
lows. We are adding new customers each<br />
week and keeping our old ones. Although*<br />
all classes of business have felt the general<br />
depression, yet we have held our own. We<br />
feel every confidence in our continued suc<br />
cess this summer.<br />
WAUKEGAN EXPANDS<br />
The Co-operative Trading Company<br />
of Waukegan, Illinois, which supplies<br />
one-fourth of the community with<br />
groceries, meats, milk, etc., issued a<br />
good report on last year's business.<br />
The total business done in the dairy,<br />
grocery and meat departments,<br />
amounted to $157,559 during 1921.<br />
On this amount there was a surplus<br />
saving for the membership of $5,594.<br />
It is interesting to note how this was<br />
distributed. The Reserve Fund re<br />
ceived $550; the Educational Fund<br />
$500, and a contribution of $150 was<br />
made to Russian Famine Relief.<br />
There remained a balance of $4,344,<br />
which was distributed to the mem<br />
bers as a patronage savings-return.<br />
Eight per cent savings were paid on<br />
milk purchases. The dairy is taxed<br />
to its fullest capacity, to meet the<br />
demand for service. It is planned to<br />
erect a new dairy building.<br />
The Waukegan society is one of<br />
the best in Illinois. It is affiliated<br />
with The Co-operative League and<br />
with the Co-operative Central Ex<br />
change, of Superior, Wisconsin.<br />
MOUNT OLIVE'S RE<strong>CO</strong>RD<br />
Mount Olive, Illinois, also has a fine<br />
record. The report for the last six<br />
months of business of the Mt. Olive<br />
Co-operative Society is now at hand,<br />
showing gross sales during that per<br />
iod of $39,104, an increase of $6,080<br />
over the previous half year. The<br />
average sales per month of this so<br />
ciety amount to $6,517. Its surplus-<br />
savings during the last six months<br />
totalled $1,808. A 3 per cent savings-<br />
return was paid to members in addi<br />
tion to 3 per cent interest on capital;<br />
$830 remains as undivided savings.<br />
This society issues a lively bulletin<br />
to its members every month, and is<br />
doing good educational work.<br />
BLOOMINGTON BUYS BUILDING<br />
One year ago the Blpomington, Il<br />
linois, Co-operative Society moved in<br />
to a building it had purchased. Mak<br />
ing allowances for the gradual ex<br />
pansion of the business, it was be<br />
lieved that the space would be ample<br />
to accommodate the store for many<br />
years. Within a year, the business<br />
had increased 60 per cent, and it was<br />
imperative to find larger quarters.<br />
The society has now bought the<br />
property next door for $38,000, and<br />
with the new establishment it will be<br />
one of the largest retail stores in<br />
town. The annual business of the<br />
society in 1921 was $161,000. The<br />
store handles groceries, fresh and<br />
cured meats, men's clothing and furn<br />
ishings, shoes, kitchen utensils, and<br />
coal.<br />
Since the society was organized,<br />
four years ago, it has returned to its<br />
members in savings-returns the en<br />
tire amount of their investment, and<br />
18 per cent in addition. The society<br />
has paid an average .savings-return<br />
each year amounting to 28^' per cent<br />
of the invested capital, in addition to<br />
4 per cent interest. The Rochdale<br />
principles are strictly adhered to.<br />
The Bloomington Co-operative So<br />
ciety has the support of organized la<br />
bor but like all consumers' co-opera<br />
tives, it is open for all consumers to<br />
join. It has a membership of 500.<br />
Though thousands of dollars were lost<br />
in Bloomington by dupes who sub<br />
scribed to fake co-operatives, this<br />
genuine co-operative society, affili<br />
ated with The Co-operative League,<br />
warned its members and saved their<br />
money. The society has carried on<br />
constant educational work to spread<br />
the message of Co-operation to all<br />
consumers.<br />
GALESBURG NEVER PASSED A<br />
DIVIDEND<br />
The Galesburg, Illinois, Society is<br />
one of the oldest co-operatives in Il<br />
linois, organized in 1910 and incorpo<br />
rated in 1911 under Illinois laws. It<br />
organized in Chicago, before Illinois<br />
<strong>CO</strong>-<strong>OPERATION</strong> 87<br />
had a law providing for co-operative<br />
societies, so it incorporated under the<br />
regular Corporation Act, and chang<br />
ed to the Co-operative Act as soon as<br />
it became a law. It had stores in Ke-<br />
wanee, Quincy, Chicago, and Staun-<br />
ton, Illinois, and local organizations<br />
from Florida to Nebraska.<br />
At a stockholders' meeting held<br />
some ,six or seven years ago, the na<br />
tional organization was dissolved and<br />
the Galesburg store retained the cor<br />
porate name, Consumers Alliance Na<br />
tional.<br />
During the whole period the so<br />
ciety has never passed a dividend,<br />
and it has lost very few members.<br />
August 14, 1919, the Galesburg So<br />
ciety opened her second store, and on<br />
April 15, 1920 it opened their third<br />
store. Last year the Knox County<br />
Co-operative Society was formed for<br />
the purpose of selling fuel, but the<br />
stockholders felt that even though<br />
not competitive, there was no need of<br />
two distinct co-operatives in the city.<br />
An amalgamation was therefore<br />
formed, and the name of the com<br />
bined organization was changed to<br />
The Galesburg Co-operative Society.<br />
LECTURES ON REBUILDING<br />
THE WORLD<br />
The Get-Together Club of the Com<br />
munity Church of New York has held<br />
a series of lectures on "Rebuilding<br />
the World" in which Co-operation<br />
played a large part. The lectures<br />
were held at the Community Church,<br />
Park Avenue and 34th Street, as fol<br />
lows:<br />
January 10, "Meaning and Objects<br />
of Consumers' Co-operation," Cedric<br />
Long;<br />
February 14, "European Co-opera<br />
tion as I Saw It," Agnes D. Warbasse;<br />
March 14, "Snap-shots of Co-opera<br />
tors at Work in the United States,"<br />
(Illus. Lecture), Mabel W. Cheel;<br />
April 11, "Co-operation as the Road<br />
towards Real Internationalism," Jas.<br />
P. Warbasse;<br />
May 9, "How to apply Co-operative<br />
Effort to Community Church Activ<br />
ities," Cedric Long.
88 <strong>CO</strong>-<strong>OPERATION</strong><br />
NEW PLANT FOR FRANKLIN<br />
CREAMERY<br />
The Franklin Co-operative Cream<br />
ery Association, of Minneapolis has<br />
outgrown its present quarters in less<br />
than one year. When the association<br />
began business March 25, 1921, no<br />
one thought that they would need a<br />
larger plant for a long time. But the<br />
success of the co-operative creamery<br />
far exceeded the expectations of the<br />
Co-operators. Whereas the output<br />
of the plant amounted to eighteen<br />
wagon-loads in the beginning, it now<br />
takes seventy-four wagons and<br />
trucks, loaded to capacity, to supply<br />
the customers. The capacity of the<br />
plant is twice as large as it was last<br />
year, but is not sufficient to meet the<br />
growing demand. It now has 22,000<br />
customers and shareholders.<br />
A new plant is about to be erected<br />
on the North Side of the city. The<br />
new building will be 122 by 145, and<br />
will be two stories high. It will be<br />
twice the size of the present crowded<br />
quarters. The construction work will<br />
be carried on by the Union Construc<br />
tion Company, reorganized by the<br />
building trades of Minneapolis.<br />
OKLAHOMA FARMERS SAVE<br />
Co-operation is the great help in<br />
times of adversity. Hard times on the<br />
farm has done more to promote Co<br />
operation than all the talking in the<br />
country. Farmers who used to "get<br />
along well enough" by themselves are<br />
now anxious to co-operate with their<br />
neighbors. The farmers of Oklahoma<br />
have found that Co-operation pays.<br />
They saved $30,000 last year on pur<br />
chasing a million pounds of binding<br />
twine through the Farmers' Ex<br />
change. They bought co-operatively<br />
over 400 cars of coal at a saving of $3<br />
a ton. The 15,000 bushels of seed po<br />
tatoes they needed cost them $22,500<br />
less than the best price from private<br />
dealers, and a further saving of $16,-<br />
125 was made on 43 cars of eating po<br />
tatoes purchased this fall. The farm<br />
er should be a Co-operator if, for no<br />
other reason than that he spends all<br />
he earns.<br />
<strong>CO</strong>-OPS AID RUSSIAN RELIEF<br />
Co-operatives all over the country<br />
are contributing money or goods to<br />
the relief of famine in Russia.<br />
The Co-operative Central Ex<br />
change, of Superior, Wisconsin, at its<br />
recent annual meeting voted to con<br />
tribute $600 from its treasury, for<br />
Russian relief work.<br />
From far away Idaho comes word<br />
that the Co-operatives are ready to do<br />
their part toward stemming the tide<br />
of death and suffering in famine-<br />
stricken Russia. All profits on sales<br />
throughout the entire month of Feb<br />
ruary were pledged for purposes of<br />
Russian relief by the Consumers'<br />
Store of Boise, Idaho.<br />
Several societies have voted to de<br />
vote all their surplus-savings to Rus<br />
sian relief, instead of distributing<br />
them as savings-returns.<br />
A NINETY-YEAR-OLD <strong>CO</strong>-OPERA<br />
TIVE<br />
The Lockhurst Lane Co-operative<br />
Society of Coventry, England was<br />
founded in 1832, and claims to be the<br />
oldest co-operative now in existence.<br />
The society came into existence with<br />
nine members, who finally invested<br />
five pounds each by paying in from<br />
two to six pence weekly. Member<br />
ship was to be limited to forty per<br />
sons and profits were to be divided<br />
equally, irrespective of the amount<br />
of each member's patronage. The an<br />
nual trade for 1832 amounted to $3,-<br />
500.<br />
For many years it ran on principles<br />
different from the Rochdale societies,<br />
which came into existence much later.<br />
As it was expected by the secretary<br />
of the society, the society "was as<br />
much like a co-operative society of<br />
today as chalk is like cheese." In<br />
1865 it was decided to change the pol<br />
icy to conform with Rochdale 1 Co<br />
operation, and it has been conducted<br />
as a Rochdale co-operative since.<br />
Little progress was shown until the<br />
society completely changed its tac<br />
tics and adopted the Rochdale prin<br />
ciples. Since then it has experi<br />
enced a remarkable growth. By 1900<br />
it had a membership of 670, a capital<br />
of $70,000, and an annual trade of<br />
$82,500, on which there was a return<br />
to members of about $15,000.<br />
Within ten years more progress<br />
was shown. By 1910 there were 1,524<br />
members, $130,000 in capital, an an<br />
nual trade of $215,000, on which there<br />
was a saving for members of $40,500.<br />
In 1920 the society had a membership<br />
of 4,116, $220,000 in capital, its trade<br />
for the year amounted to $850,000,<br />
and returns were made to members<br />
of $65,000 for the year.<br />
The society owns six grocery shops,<br />
a coal wharf, its own stables for its<br />
vehicles, a shoe shop, clothing shop,<br />
three dry goods shops, a vegetable<br />
store, a farm, and a bakery. In 1920<br />
the bakery turned out a quarter of a<br />
million 4-pound loaves of bread, or a<br />
million pounds of bread. The land<br />
and buildings of the society are val<br />
ued at $85,000. The society main<br />
tains a bank for its members and has<br />
cottages for rent.<br />
For ninety years this co-operative<br />
has been serving the consumers, and<br />
each decade finds its membership<br />
larger, its resources stronger, and its<br />
business activities increased, while<br />
private business in contrary is shrink<br />
ing in volume every year.<br />
THE FUTURE OF IRELAND<br />
George Russell, the intellectual<br />
leader of the Irish Co-operative Move<br />
ment, has recently made this signifi<br />
cant statement: "I should prefer the<br />
stability of national life to be main<br />
tained by the existence of such bal<br />
ancing forces in society rather than<br />
by the artificial methods of senates<br />
and venerable ancients to offset the<br />
vehement radicals elected to move<br />
democratic assemblies. No govern<br />
ment in the world has hitherto trust<br />
ed the people it governs. I am suffici<br />
ent of an anarchist to have a dread of<br />
the state which is rarely a fountain<br />
of lovable or desirable life. I hope to<br />
see in Ireland, some thousands of self-<br />
governing economic communities,<br />
minute nations in fact, leaving but<br />
little for central government to do<br />
for them."<br />
<strong>CO</strong>-<strong>OPERATION</strong> 89<br />
INSURANCE IN GREAT BRITAIN<br />
The Co-operative Insurance Society<br />
of Great Britain, the joint Insurance<br />
Department of the English and Scot<br />
tish C. W. S. is steadily crowding out<br />
the private insurance companies. In<br />
1921 the C. I. S. took in 19 per cent<br />
more in premiums than in the pre<br />
vious year. The total assets of the<br />
business amount to $10,000,000. Al<br />
most every conceivable variety of in<br />
surance is written by the society.<br />
The industrial life department alone'<br />
issues 10,000 policies every week.<br />
The steady growth of the co-opera<br />
tive insurance business has alarmed<br />
the profiteering insurance companies.<br />
Agents of the latter companies go<br />
out of their way in slandering the<br />
Co-operative Insurance Society. Anon<br />
ymous leaflets have been discovered,<br />
which misrepresent and belittle the<br />
C. I. S. But "every knock is a boost,"<br />
and more and more of the insurance<br />
business of Great Britain is being<br />
•swallowed up by the C. I. S.<br />
FRENCH DRINK WINE<br />
The French Co-operative Whole<br />
sale Society (M. D. G.) has 200 tank<br />
railroad cars for bringing wine from<br />
the vineyards into their wine vaults<br />
in Paris. Last year they spent 32,-<br />
000,000 francs on wine, and con<br />
sumed 8,000,000 gallons.<br />
BERKS, PENN., SAVES MONEY<br />
Twenty-two thousand dollars were the<br />
savings gained by Berks County, Pa. Co-<br />
operators during the year 1921. This in<br />
cludes 12 enterprizes. That Bag of Corn<br />
Meal has grown some, as reports show.<br />
The new year adds another enterprize to<br />
the list, the Workers' Credit Union of<br />
Berks County. It started with $70.00 cap<br />
ital and by the end of the first six weeks<br />
had $1,050 capital paid in. It had out<br />
loans amounting to $860, used to pay off<br />
loan sharks, save an increase in price of<br />
land to a member by prompt payment on<br />
it, buy 50 barrels of flour for a co-opera<br />
tive bakery at a substantial saving, etc.<br />
In spite of the industrial depression, pro<br />
gress was made during the year, to be<br />
an example for other workers to follow.<br />
Reading, Pa. FRED M. MERKEL.
90<br />
<strong>CO</strong>RRESPONDENCE<br />
JACKSON, TENN., PROSPERS<br />
We have a co-operative society here that<br />
I feel very proud of. March 1, <strong>1922</strong> was<br />
the end of our second year's business. Our<br />
first year's business was $115,000, and<br />
our second year was $114,500. (With the<br />
fall in prices during that time, this repre<br />
sents a gain in business done.) We find a<br />
great deal of good information in the mag<br />
azine <strong>CO</strong>-<strong>OPERATION</strong>.<br />
The society has sent out checks repre<br />
senting a savings-return of 2 per cent on<br />
purchases from July 1, 1921 to December<br />
31, 1921, and interest at 3 per cent on<br />
capital stock of the Society. We are pay<br />
ing to the shareholders about $1,200 in<br />
savings-returns and interest. Our pros<br />
pects are bright for the future if we only<br />
remain loyal to the cause. It will only be<br />
a short time until our lodge room will pay<br />
over half of our rent bill, and of course<br />
that will be that much more to go into our<br />
surplus-savings. The only reason our busi<br />
ness is not twice or three times as large as<br />
it is, is because the producers and consum<br />
ers are not loyal to their own interests.<br />
There are other individuals that they pre<br />
fer giving their money to, rather than<br />
keeping it themselves.<br />
Now for the sake of those that toil, let<br />
us get together, stay together, and pull to<br />
gether for the cause of Co-operation, for it<br />
is the quickest and surest way for us to<br />
reap the full benefits of our labor.<br />
Jackson, Tenn.<br />
E. S. MANLEY,<br />
President,<br />
Madison Co-operative Society.<br />
THE EDUCATED SECRETARY OF<br />
THE NEWPORT SOCIETY<br />
Having been elected Secretary of the<br />
Union Co-operative Association, and desir<br />
ing a better knowledge of the Movement<br />
than I now possess, in order that I may<br />
render to my fellow Co-operators a more<br />
efficient service, I am taking this oppor<br />
tunity to ask of The Co-operative League<br />
such assistance as you may be able to fur<br />
nish me along the lines of educational lit<br />
erature to myself and suggestions for the<br />
betering of Co-operation in this city.<br />
We are considering the issuing of a bi<br />
monthly mimeographed letter to all of our<br />
members, which should be in the nature of<br />
an educational course. Any suggestions<br />
you may advance will be gratefully re<br />
ceived. TIMOTHY J. McCAFFREY.<br />
Newport, R. I.<br />
<strong>CO</strong>-<strong>OPERATION</strong><br />
HELP A FRIEND<br />
Make real Co-operators by getting sub<br />
scriptions to this magazine. People who<br />
understand Co-operation are the hope of the<br />
world.<br />
STATEMENT OF THE OWNERSHIP, MANAGE<br />
MENT, CIRCULATION, ETC., REQUIRED BY<br />
THE ACT OF <strong>CO</strong>NGRESS OF AUGUST<br />
24, 1912<br />
Of <strong>CO</strong>-<strong>OPERATION</strong> published monthly at New York,<br />
N. T. for April 1. <strong>1922</strong>.<br />
State of New Tork<br />
County of New Tork, ss.<br />
Before me, a notary public In and for th» State<br />
and county aforesaid, personally appeared J. N.<br />
Perklns, "who, having been duly sworn according<br />
to law, deposes and says that he Is the busi<br />
ness manager of the <strong>CO</strong>-<strong>OPERATION</strong> and that the<br />
following is, to the best of his knoweldge and be<br />
lief, a true statement of the ownership, manage<br />
ment (and if a dally paper, the circulation), etc.,<br />
of the aforesaid publication for the date shown in<br />
the above caption, required! by the Act of August<br />
24, 1912, embodied In section 443, Postal Laws and<br />
Regulations, printed on the reverse of this form,<br />
to wit:<br />
1. That the names and addresses of the publisher,<br />
editor, managing editor, and businsss managers<br />
are:<br />
Publisher, The Co-operative League of America,<br />
2 West 13th Street, New Tork City<br />
Editor, James P. Warbasse,<br />
2 West 13th Street, New Tork City<br />
Managing Editor, Albert Sonnlchsen,<br />
2 West 13th Street, New Tork City<br />
Business Manager, J. N. Perkina,<br />
2 West 13th Street, New Tork City<br />
2. That the owners are: (Give names and addresses<br />
of individual owners, or, if a corporation, give Its<br />
name and the names and addresses of stockholders<br />
owning or holding 1 per cent or more of the total<br />
amount of stock.)<br />
The Co-operative League of America,<br />
2 West 13th Street. New Tork City<br />
James P. Warbasse, President,<br />
2 West 13th Street, New Tork City<br />
A. P. Bower, Vice-Presldent<br />
2 West 13th Street, New Tork City<br />
Waldemar Niemela, Treasurer,<br />
2 West 13th Street, New Tork City<br />
(Organization members, 1,000.)<br />
3. 7*hat the known bondholders, mortgagees, and<br />
other security holders owning or holding 1 per cent<br />
or more of total amount of bonds, mortgages, or<br />
other securities are: (If there are none, so state.)<br />
None.<br />
4. That the two paragraphs next above, giving the<br />
names of the owners, stockholders, and security hold<br />
ers, if any, contain not only the list of stockholders<br />
and security holders as they appear upon the books<br />
of the company but also. In cases where the stock<br />
holder or security holder appears upon the books of<br />
the company as trustee or in any other fiduciary re<br />
lation, the name of the person or corporation for<br />
•whom such trustee is acting, is given; also that the<br />
said two paragraphs contain statements embracing<br />
affiant's full knowledge and belief as to the circum<br />
stances and conditions under which stockholders and<br />
security holders who do not appear upon the books<br />
of the company as trustees, hold stock and secur<br />
ities in a capacity other than that of a bona fide<br />
owner: and this affiant has no reason to believe that<br />
any other person, association, or corporation has<br />
any interest direct or Indirect In the said stock,<br />
bonds, or other securities than as so stated by him.<br />
5. That the average number of copies of each is<br />
sue of this publication sold! or distributed, through<br />
the mails or otherwise, to paid subscribers during<br />
the six months preceding the date shown above is<br />
.......... (This information Is required from dally<br />
publications only.)<br />
J. N. PERKINS,<br />
Business Manager.<br />
Sworn to and subscribed before me this 27th day of<br />
March, <strong>1922</strong>.<br />
WALTER C. CAMPBELL,<br />
(Seal) (My commission expires,<br />
March SQth, <strong>1922</strong>.)<br />
<strong>CO</strong>-<strong>OPERATION</strong><br />
PUBLICATIONS<br />
OF THE <strong>CO</strong>-OPERATIVE LEAGUE<br />
HISTORICAL Per Copy Per 100<br />
3. Story of Co-operation .................................................j .10 $6.00<br />
7. British Co-operative Movement ........................................ .10 600<br />
10. A Baker and What He Baked (Belgian Movement)...................... '.05<br />
38. Co-operative Consumers' Movement in the United States............... .OB 4.00<br />
TECHNICAL<br />
4. How to Start and Run a Rochdale Co-operative Society.................. .10 4.00<br />
6. System of Store Records and Accounts................................ .50<br />
6. A Model Constitution and By-Laws for a Co-operative Society........... .05 2.60<br />
8. Co-operative Education. Duties of Educational Committee Defined..... .10<br />
9. How to Start a Co-operative Wholesale................................ .10<br />
27. Why Co-operative Stores Fail ......................................... .02 1.00<br />
2. Co-operative Store Management ...................................... .10<br />
14. How to Start and Run a Women's Guild................................ .05<br />
MISCELLANEOUS<br />
46. Producers' Co-operative Industries ................................... .10<br />
11. Control of Industry by the People Through the Co-operative Movement... .10<br />
12. Credit Union and Co-operative Store.................................. .05 1.7B<br />
34. Co-operative Movement (Yiddish) .................................... .02 1.26<br />
43. Co-operative Housing ................................................. .10<br />
ONE-PAGE LEAFLETS<br />
(One cent each; 50 cents per 100; $2.50 per 500; $4 per 1,000)<br />
(1) Principles and Aims of the Co-operative League of America; (17) Do You Know Why You<br />
Should Be a Co-operator; (20) Why Loyalty Is Necessary; (21) Cost and Crime of<br />
Credit; (22) A Real Co-operator; (25) Resolutions Adopted by A. F. of L.; (26) Factory<br />
Workers, Co-operate!; (28) Do You Know About Co-operation in Europe?; (40) Have<br />
You a Committee on Education and Recreation?; (44) What Is the Co-operative<br />
Movement? Miscellaneous Educational Leaflets.<br />
MONTHLY PUBLICATIONS<br />
<strong>CO</strong>-<strong>OPERATION</strong>—(In bundle lots, $7.50 per hundred). Subscription, per year......... .$1.00<br />
HOME <strong>CO</strong>-OPERATOR, 4 pages ................................................ $1 per 100<br />
INTERNATIONAL <strong>CO</strong>-OPERATIVE BULLETIN (Pub. by The I. C. A.)...... .per year, $1.50<br />
BOOKS<br />
The following books are recommended as containing the best discussions of the modern<br />
Co-operative Movement. They made be ordered through The League:<br />
Bubnoff, J. B.: The Co-operative Movement in Russia, 1917.......................... .$1.2B<br />
Faber, Harald: Co-operation in Danish Agriculture, 1918.............................. 2.7B<br />
Flanagan, J. A.: Wholesale Co-operation in Scotland, 1920............................ 2.00<br />
Gebhard, Hannes: Co-operation in Finland, 1916...................................... 2.00<br />
Gide, C.: Consumers' Co-operative Societies, 1921...................................... 2.60<br />
Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, £2.00; paper<br />
bound ........................................................................... .60<br />
Holyoake, George Jacob: The History of the Rochdale Pioneers........................ 2.00<br />
Howe, Fred C.: Denmark, a Co-operative Commonwealth, 1921.......................... 2.50<br />
Maxwell, Wm.: History of Co-operation in Scotland, 1910.............................. 2.00<br />
Nicholson, Isa: Our Story ............................................................ .26<br />
Powell, G. Harold: Co-operation in Agriculture. Macmillan ........................... 1.50<br />
Redfern, Percy: The Story of the C. W. S............................................. 2.00<br />
Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918....................... 2.BO<br />
Smith-Gordon: Co-operation in Many Lands, 1920...................................... 2.50<br />
Sonnichsen, Albert: Consumers' Co-operation, 1919. Cloth bound, $1.76; paper bound... .76<br />
Stolinsky, A.: The Co-operative Movement. In Yiddish.............................,.. 1.00<br />
Webb, B. and S.: The Consumers' Co-operative Movement, 1921........................ 6.06<br />
Webb, Catherine: Industrial Co-operation, 1917 ...................................... 1.50<br />
Woolf, Leonard: Co-operation and the Future of Industry............................. 2.00<br />
Woolf, L.: Socialism and Co-operation................................................ 2.00<br />
"The Co-operative Consumer" and "Co-operation," III (1917), VI (1920), VII (1921).... 1.25<br />
Transactions of Second American Co-operative Convention, 1920................... . 1 00<br />
The People's Year Book, <strong>1922</strong>...................................................... .75<br />
(Ten cents postage should be added for books which coat more than $2.00, and five cent*<br />
for the smaller books.)
THE <strong>CO</strong>-OPERATIVE LEAGUE<br />
(Member of The International Co-operative Allinace)<br />
167 West 12th Street, New York<br />
An educational organization for teaching the history, principles, methods and aims of the<br />
Co-operative Movement and for the promotion of Co-operation in the United States.<br />
Join The League and thus help promote the educational work of the Co-opera<br />
tive Movement. Individual Membership, 1.00 a year.<br />
Subscribe for <strong>CO</strong>-<strong>OPERATION</strong><br />
The Monthly Magazine of The League<br />
Keep in touch with the Movement, $1.00 a year.<br />
This Journal Is Not Published for Profit<br />
Co-operative Central Exchange<br />
Wholesale Grocers and Jobbers,<br />
Bakers<br />
We supply goods to Co-operative Societies ONLY<br />
We are owned and controlled by Co-operative<br />
Societies.<br />
We are organized to enable Co-operative Societies<br />
to do collectively what they cannot do indi<br />
vidually.<br />
Co-operative Central Exchange<br />
Offices, Warehouses and Plant:<br />
Winter Street and Ogden Ave.,<br />
SUPERIOR, WIS.<br />
Co-operators' Ltd. Mutual Fire Insurance Co.<br />
is now writing insurance in State of Wisconsin.<br />
The Canadian Co-operator<br />
Brantford, Ontario,<br />
Canada<br />
The organ of the Canadian Co-opera<br />
tive Movement, owned by and con<br />
ducted under the auspices of The<br />
Co-operative Union of Canada.<br />
Published monthly; 75c per annum<br />
MOVING PICTURES<br />
and<br />
Stereopticon Lectures<br />
may be rented from<br />
<strong>CO</strong>-OPERATIVE LEAGUE OF AMERICA<br />
167 West 12th St., New York City<br />
1. "Soii« Examples of English Co-operation."<br />
Moving pictures of factory processes (two<br />
reels) ................................$5.00<br />
2. "Co-operation in the United States."<br />
With 68 Stereopticon views ........... .$3.00<br />
3. "The Co-operative Movement in Russsla."<br />
With 86 colored Stereopticon views... .$3.00<br />
Co-operation in Scotland<br />
In no part of the world is Co-operation further<br />
developed, or more successfully practised than in<br />
Scotland. If you wish to keep in touch, read<br />
"The Scottish Co-operator"<br />
(Published Weekly)<br />
Subscription: Year 12 eh.: half-year, 6 sh.<br />
Address, 119 Paisley Road,<br />
Glasgow, Scotland<br />
THE PRODUCER<br />
Issued Monthly Price 3d.<br />
If you want to keep in touch with<br />
business, organization, administra<br />
tive affairs, and problems of the<br />
British Co-operative Movement,<br />
read THE PRODUCER.<br />
Published by<br />
Co-operative Wholesale Society, Inc.<br />
1 Balloon Street, Manchester.<br />
Post free 4 sh. 6d. a year.<br />
The Trade and Technical Organ of British<br />
Co-operation.<br />
THE HOME <strong>CO</strong>-OPERATOR<br />
A four-page magazine for<br />
use in co-operative societies.<br />
Issued monthly, in bundles, $1 per hundred.<br />
Published by<br />
The Co-operative League<br />
Publishing Office, Willimantic, Conn. Al<br />
bert Sonnichsen, Managing Eitor.<br />
I<br />
(WRMION<br />
A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in vol<br />
untary association, produce and distribute for their own use the things they need<br />
Published monthly by The Co-operative League, 167 West Twelfth Street, New York City,<br />
J. P. Warbasse, Editor. Price, $1.00 a year. Entered as second class matter, December 19,<br />
1917, at the Post Office at New York, N. Y., under ,the Act of March 3, 1879.<br />
Vol. <strong>VIII</strong>, No. 6 JUNE, <strong>1922</strong> 10 Cents<br />
VITAL ISSUES<br />
WHEN WILL THE REVOLUTION<br />
<strong>CO</strong>ME?<br />
Some people who call themselves<br />
"radicals" are working for the revo<br />
lution. But they can save them<br />
selves the trouble, the capitalists are<br />
doing it for them. And it is coming<br />
as suiely as this country is ruled by<br />
the powers of finance. The danger<br />
is that the working people will have<br />
no adequate economic system ready<br />
to take its place when the present<br />
system goes to smash.<br />
If the people really want things<br />
changed, there is a way to change<br />
things. It is by patiently going to<br />
work and educating themselves to un<br />
derstand economics and collective<br />
mass action, and how to carry on the<br />
affairs of the world in a different way.<br />
The trouble with the labor move<br />
ment in the United States is that it<br />
really approves of the present profit-<br />
making economic system. It believes<br />
in the doctrine of master and servant.<br />
Yet it proceeds to be a bad servant by<br />
asking always for more wages. More<br />
wages means higher prices, and<br />
higher prices demand more wages.<br />
This means periods of high prices<br />
and high wages, and periods of low<br />
prices and low wages. But the in<br />
crease of wages is given after prices<br />
go up; while wages start down before<br />
prices go down. So the wages get<br />
away from Labor as fast as they are<br />
made. Between times, enough un<br />
employment is thrown in to keep<br />
Labor docile. When prices are low<br />
Labor has not enough money to buy<br />
much of anything. When wages are<br />
high the workers put some money in<br />
the bank, and it is borrowed by the<br />
capitalists to speculate with and<br />
make prices 'high.<br />
Labor needs to get a new view of<br />
things. It needs to get a vision of<br />
something beyond wages. It needs to<br />
take a stand for a reorganization of<br />
the whole economic system upon a<br />
different basis, and then deliberately<br />
go at the job and reorganize it.<br />
When the workers get education in<br />
the fundamentals of economics and<br />
the significant events in history, they<br />
will then be found starting labor<br />
banks, credit unions, co-operative so<br />
cieties, housing societies, workers'<br />
schools, and people's houses. And out<br />
of the training that they will get in<br />
running these things will come the<br />
men and women who can carry on in<br />
dustries for the people.<br />
This is a long program. It means<br />
a long pull and a long look ahead. But<br />
it is the winning program. The old<br />
system is strongly rooted in in<br />
dustry, in the government, in the<br />
homes, in the schools, and in the very<br />
minds of the people. It will not be<br />
destroyed by men; it will destroy<br />
itself. Then should come co-opera<br />
tive reconstruction.<br />
1
92 <strong>CO</strong>-<strong>OPERATION</strong><br />
THE FARMERS' UNION TEACHES<br />
LABOR<br />
There are in the United States two<br />
national co-operative educational or<br />
ganizations, which are sound and<br />
well-established, and which have a<br />
history of accomplishments. These<br />
two organizations are The Co-opera-"<br />
tive League and the Farmers' Educa<br />
tional and Co-operative Union.<br />
All sorts of fanciful co-operative<br />
organizations have set themselves up<br />
from time to time for national recog<br />
nition. They have now all passed<br />
into limbo—or into a receiver's hands<br />
—and the field is left at last exclu<br />
sively to two true co-operative organ<br />
izations. The responsibility which<br />
rests upon them is very great.<br />
The Farmers' Union dates back to<br />
1892. It has members in thirty<br />
states. It is a special organization<br />
devoted to the special industry of<br />
agricultural workers; but since that<br />
industry exists in every state, the<br />
Farmers' Union .should be found in<br />
every state. The important fact con<br />
cerning the Union, is that it is not a<br />
producers' organization, aiming ex<br />
clusively at getting higher prices or<br />
larger compensation for its members;<br />
but it devotes attention to educating<br />
the farmers to organize as consum<br />
ers as well as producers. It teaches<br />
them how to unite their bargaining<br />
power, not only in marketing the<br />
products of their labor, but also in<br />
purchasing their personal, farm and<br />
household supplies. This fact con<br />
nects the Farmers' Union with the<br />
great Co-operative Movement of the<br />
world. It is succeeding. It goes on<br />
while other farmers' organizations<br />
appear and disappear. It represents<br />
a sound application of fundamental<br />
principles.<br />
Other crafts of workers in the<br />
United States could learn a lesson<br />
from this organization. The great<br />
trade unions, which are giving atten<br />
tion exclusively to getting better pay<br />
and better conditions for their mem<br />
bers, should at the same time be<br />
carrying on education to teach these<br />
same members how to protect the<br />
purchasing power of their pay after<br />
they get it. Every trade union or<br />
ganization should be carrying on co<br />
operative education.<br />
Fake co-operative schemes have<br />
met with a cold reception whenever<br />
they have approached the Farmers'<br />
Union or Co-operative League so<br />
cieties; but they have had little trou<br />
ble in selling their gold bricks to<br />
trade unions—to the tune of fifteen<br />
or twenty million dollars in the last<br />
three years. The trade unions need<br />
to take a page from the Farmers'<br />
Union book and learn Co-operation.<br />
When every trade union has a com<br />
mittee on Co-operation and gives real<br />
attention to this subject, trade un<br />
ionism will place itself upon a much<br />
stronger basis than that upon which<br />
it now rests.<br />
THE FEDERAL RESERVE BANK<br />
About one-third of all the banking<br />
business of the United States is in<br />
New York State, and the New York<br />
Federal Reserve Bank conducts about<br />
one-third of the business of the en<br />
tire Federal Reserve System. The<br />
report of the New York Federal Re<br />
serve Bank is, therefore, a pretty<br />
fair index of the rest of the country.<br />
It has been generally assumed the<br />
federal banking system would elim<br />
inate the profiteers of the old bank<br />
ing systems, but as a matter of fact,<br />
it has not. The report for the year<br />
1921 for the New York District<br />
shows that the net profit earned on<br />
the capital was 97 per cent. This<br />
may seem to be a good profit; but in<br />
1920 the profit was 215 per cent.<br />
It is instructive to observe that<br />
the "profit on capital, surplus and de<br />
posits" was 3.4 per cent. Modern<br />
banking claims that the profits are<br />
made on the money put in by stock<br />
holders, but not on the money of de<br />
positors. The earnings for the year<br />
were $35,000,000; and the current ex<br />
penses for earing this amount were<br />
$7,000,000. It is in this matter of<br />
overhead that co-operative banking is<br />
able to show a great economy. This<br />
is an added reason why the banking<br />
business of the European co-opera<br />
tives is forging steadily ahead. It not<br />
only gives the surplus savings to the<br />
patrons instead of to the investors,<br />
but it is conducted more economic<br />
ally.<br />
The striking fact about the Fed<br />
eral Reserve Bank is that it makes<br />
huge profits out of the depositors'<br />
money and gives the profits to invest<br />
ors. This is neither fair nor good<br />
business. It is not fair, because it<br />
is the method that creates a privi<br />
leged non-serving class; it is not good<br />
business, because it is the method<br />
that is upsetting the world, and if it<br />
goes on the whole structure of mod<br />
ern civilization is threatened.<br />
<strong>CO</strong>-OPERATIVE SOCIETIES<br />
SHOULD IN<strong>CO</strong>RPORATE<br />
We have frequently emphasized<br />
the importance of incorporating co<br />
operative societies. Some members<br />
are inclined to view the matter of<br />
incorporation as legalistic red-tape.<br />
They are mistaken. Incorporation<br />
of a co-operative society organized<br />
for business purposes protects each<br />
and every member against the pos<br />
sibility of being individually liable<br />
for the full amount of the debts of<br />
the association.<br />
A recent case in California (Web<br />
ster vs. San Joaquin Fruit and Veg<br />
etable Growers' Protective Associa<br />
tion, an unincorporated marketing<br />
association), illustrates the law on<br />
this subject. A suit was brought by<br />
a creditor of the association against<br />
the company and against the indi<br />
vidual members of the association.<br />
The creditor recovered an individ<br />
ual judgment against certain of the<br />
members. They appealed on the<br />
ground that they were not person<br />
ally liable for the debts of the co<br />
operative association. The case<br />
went to the California Court of Ap<br />
peals, which affirmed the judgment<br />
of the lower court, stating the law<br />
as follows:<br />
"While as between the members<br />
of an unincorporated association,<br />
each is bound to pay only his numer<br />
<strong>CO</strong>-<strong>OPERATION</strong> 93<br />
ical proportion of the indebtedness<br />
of the concern, yet as against the<br />
creditors, each member is individu<br />
ally liable for the entire debt, pro<br />
vided, of course, the debt is of such<br />
nature and has been so contracted<br />
as to be binding on the association<br />
as a whole. . . . An unincorporat<br />
ed association organized for busi<br />
ness or profit is in legal effect a mere<br />
partnership so far as liability of its<br />
members to third persons is con<br />
cerned ; and accordingly each mem<br />
ber is individually liable as a part<br />
ner for a debt contracted by the as<br />
sociation."<br />
The ruling that members of unin<br />
corporated co-operatives are liable<br />
as partners applies not only to Cali<br />
fornia, but to every state where the<br />
common law has not been modified<br />
by special legislation. In effect, it<br />
means that if a co-operative is rot<br />
incorporated, every member) may<br />
become liable to the full extent of<br />
the debts legally contracted by the<br />
association.<br />
CHEAPNESS NOT THE AIM<br />
It is gratifying to receive informa<br />
tion from co-operative societies that<br />
are wrestling with the pressing<br />
problems of the day, that cheapness<br />
is not their aim. The co-operative<br />
store that deals honestly in honest<br />
goods will always find it difficult to<br />
compete with the "cheap store." A<br />
society that merely runs a "cheap<br />
store" is injuring the Co-operative<br />
Movement.<br />
The important fact to get into the<br />
minds of the members is that the<br />
purpose of Co-operation is to distrib<br />
ute good goods, to give honest weight<br />
at fair prices.<br />
The private store that sells inferi<br />
or goods and takes advantage of the<br />
customer in the little matters wher<br />
ever it has a chance, may be able to<br />
undersell the co-operative store, but<br />
the customer in the end will pay<br />
more. We must get the people to<br />
understand this. The purpose of the<br />
co-operative store is not low price,<br />
but the best value for the money.
94 <strong>CO</strong>-<strong>OPERATION</strong><br />
SEEN HERE AND THERE<br />
<strong>CO</strong>-OPERATIVE PRODUCERS' FACTORIES IN ENGLAND<br />
Producers' profit-sharing work<br />
shops, often called "co-operative<br />
productive societies," were started<br />
long before the consumers' move<br />
ment was established. Robert Owen<br />
and the old school of Co-operators<br />
of the early part of the last century<br />
were devoted to the theory that the<br />
workers as producers should com<br />
pletely get control of the shops. At<br />
the present time there are 105 of<br />
these productive societies in Eng<br />
land. In 1913 there were 108. The<br />
important factor is the number of<br />
employees. In 1913 the workers<br />
numbered 10,500; in 1920 there<br />
were 11,500.<br />
How nearly these shops are con<br />
trolled by the workers may be seen<br />
from the fact that in 1913 the total<br />
number of shareholders of the so<br />
cieties was 35,000, and in 1920 it<br />
was 43,000. In other words, there<br />
are more than three times as many<br />
shareholders as workers. The work<br />
ers have not been able to finance<br />
these undertakings, and consequent<br />
ly three-fourths of the membership<br />
is outside of the shops. This major<br />
ity of shareholders who are not<br />
workers in the industry do not at<br />
tend the meetings, the managers<br />
have told me. They do not partici<br />
pate in the government. They put<br />
in their money either for investment<br />
or philanthropy. I will cite two of<br />
the best examples in England.<br />
The Desborough shoe factory is<br />
one of the best of these shops. In<br />
this case about one-third of the<br />
stock is owned by the workers, one-<br />
third by consumers' societies, and<br />
one-third by philanthropists and<br />
other organizations. There is noth<br />
ing about this shoe factory that im<br />
presses one as setting any especial<br />
example. It is crowded, noisy, stren<br />
uous, dirty and possesses not a sug<br />
gestion of beauty or attention to<br />
anything but intensive production.<br />
ByJ. P. W.<br />
Many of the workers are young boys<br />
with the peculiar pallor that one<br />
constantly sees in other profit-mak<br />
ing shoe factories. I was sadly im<br />
pressed by this effort of the workers<br />
to get control of their factory by way<br />
of the producers' approach. The<br />
wages earned by these workers are<br />
on the whole slightly better than in<br />
capitalistic shoe factories; but the<br />
struggle is a desperate one. I could<br />
not help recalling the spacious, airy,<br />
clean and beautiful shoe factory of<br />
the Swiss consumers' societies in<br />
Basel, or the big, airy factory of the<br />
Danish Wholesale at Copenhagen<br />
or the great shoe works of the<br />
English wholesale at Leceister.<br />
These three are consumers' facto<br />
ries. In comparison with them the<br />
efforts of producers seem like very<br />
precarious undertakings. As a<br />
plant the Desborough shoe factory<br />
compares very unfavorably with the<br />
corset factory of the C. W. S. in the<br />
same town.<br />
Another of the best examples of<br />
a productive society is the Kittering<br />
clothing works. In this case also the<br />
workers own only about one-third of<br />
the stock. Most of the employees<br />
are girls. As is the case in all in<br />
dustries, they are there only until<br />
they can get married or find a better<br />
job; but this fact prevents them<br />
from developing a permanent inter<br />
est in the shop. On the other hand,<br />
marriage or a better job does not in<br />
terfere with the consumers' relation<br />
to his society, except to improve it.<br />
This Kittering clothing factory is an<br />
old society of producers. I asked the<br />
manager what he saw ahead for it,<br />
what was to be its ultimate desti<br />
ny? He frankly replied that it would<br />
probably end by being taken over<br />
by the Co-operative Wholesale So<br />
ciety.<br />
This latter has been the fate of<br />
many of the producers' plants that<br />
have not gone down in failure. Rel<br />
atively few have lasted long. For<br />
fifty years the English C. W. S. has<br />
been taking over factories that were<br />
started by the workers in the inter<br />
est of the employees. It is interest<br />
ing history to see these producers'<br />
shops, one by one, being taken over<br />
by the organized consumers' move<br />
ment.<br />
These producers seem to under<br />
stand the difficulties under which<br />
they labor better than the theorists<br />
who still harbor the fallacy that<br />
workers' control can be won by be<br />
ginning at the productive plant.<br />
They are coming to understand that<br />
these productive shops are not pro<br />
ducing goods for use, but for profit.<br />
If their enterprise succeeds it means<br />
profits for the workers, and if the<br />
profits become large the natural ten<br />
dency is to restrict the number of<br />
people who can have them. By so<br />
doing the profits are made still lar<br />
ger. As a result, the "successful"<br />
producers' factory tends to convert<br />
itself into a busines of capitalists<br />
and the social spirit disappears.<br />
Success means failure!<br />
In England these producers' so<br />
<strong>CO</strong>-<strong>OPERATION</strong> 95<br />
cieties in the last eight years have<br />
increased their membership 23 per<br />
cent, but the total number of em<br />
ployees has been increased only<br />
14 per cent. On the other hand,<br />
the consumers' societies in the same<br />
period increased their membership<br />
from 2,878,648 to 4,504,852, an in<br />
crease of nearly 100 per cent. The<br />
total employees of the consumers'<br />
societies of Great Britain is 186,000.<br />
One reason for this difference in<br />
size and growth between producers'<br />
and consumers' societies is that the<br />
increase of membership is of advan<br />
tage to the consumers; but if the<br />
producers increase the number of<br />
workers the profits must be divided<br />
among more people, and if they in<br />
crease the number of members who<br />
do not work, democracy is carried<br />
just so much farther away. The<br />
producers' profit-sharing work-shop<br />
may be useful as an adjunct to the<br />
trade union movement, but neither<br />
it nor the trade union movement<br />
alone can solve the workers' prob<br />
lem. The British working people<br />
are arriving at the understanding<br />
that the control of industry by the<br />
people can be attained only by<br />
organizing as consumers.<br />
THE NORTHERN STATES <strong>CO</strong>-OPERATIVE<br />
LEAGUE<br />
A brief report of the organization<br />
of the Northern States League has<br />
been published in the April issue of<br />
this magazine. The new district<br />
league is organized under the con<br />
stitution of The Co-operative League.<br />
The convention was held in the Co<br />
operative Central Exchange Build<br />
ing, on March 18. Fourteen co-op<br />
erative societies sent 24 delegates to<br />
this convention.<br />
Among the fourteen societies rep<br />
resented there was one central<br />
(wholesale) organization—the Co<br />
operative Central Exchange of Su<br />
perior, Wis.—and two co-operative<br />
(consumers') creameries; the rest<br />
were distributive societies (co-oper<br />
By SEVERI ALANNE<br />
ative stores). The aggregate mem<br />
bership of these 14 societies ex<br />
ceeded 10,000, and the total sales of<br />
these societies during the year 1921<br />
was more than $1,500,000. The fol<br />
lowing is a complete list of the so<br />
cieties represented at this conven<br />
tion :<br />
Milwaukee Consumers' Co-opera<br />
tive Association, Milwaukee, Wis.;<br />
delegates, Edw. Murray and Harry<br />
J. Toal.<br />
Co-operative Central Exchange,<br />
Superior, Wis.; delegates, John<br />
Nummivuori, Severi Alanne, Matt<br />
Tenhunen, K. Lindenwall and H. V.<br />
Nurmi.<br />
Franklin Co-operative Creamery
96 <strong>CO</strong>-<strong>OPERATION</strong> <strong>CO</strong>-<strong>OPERATION</strong> 97<br />
Association, Minneapolis, Minn.;<br />
delegate, Mrs. Edw. Solem.<br />
Union Consumers' Co-operative<br />
Society, Duluth, Minn.; delegates,<br />
P. F. DeMore, John Crew and H. L.<br />
Morin.<br />
Workers' and Farmers' Co-opera<br />
tive Company, Two Harbors, Minn.;<br />
delegate, Aug. Omtvedt.<br />
Glenwood City Equity Company,<br />
Glenwood City, Wis.; delegates,<br />
Wm. Rutzen and David Zillsdorf.<br />
Spooner Co-operative Association,<br />
Spooner, Wis.; delegate, Wm. D.<br />
Campaigne.<br />
Producers' Co-operative Associa<br />
tion, Ashland, Wis.; delegate, C. L.<br />
Rydmark.<br />
Central Co-operative Creamery<br />
Association, Superior, Wis.; cBele-<br />
gates, Harry Bourquin and Arvid<br />
Nelson.<br />
Farmers' Co-operative Company,<br />
Wright, Minn.; delegate, Victor<br />
Lahti.<br />
Farmers' Co-operative Company,<br />
Cromwell, Minn.; delegate, Sam<br />
Sahlman.<br />
Wentworth Farmers' Co-operative<br />
Association, Wentworth, Wis.; dele<br />
gates, Frank Berggren and Anton<br />
Christensen.<br />
Brantwood Supply Company,<br />
Brantwood, Wis.; delegate, A. E.<br />
Lindros.<br />
Pilsen Co-operative Association,<br />
Moquah, Wis.; delegates, John Me-<br />
lisko and M. J. Bizub.<br />
Nine of the societies represented<br />
are in Wisconsin, while six are in<br />
Minnesota. Several societies from<br />
the state of Michigan had been in<br />
vited to send delegates to the con<br />
vention, but only one—the Crystal<br />
Falls Co-operative Society—had<br />
sent delegates. By a misunder<br />
standing, however, these delegates<br />
had arrived in Superior for the 17th,<br />
on which date a co-operative man<br />
agers' conference was held, and on<br />
account of arrangements they had<br />
made at home, had to return on the<br />
night of the 17th, and thus were<br />
unable to take part in the delibera<br />
tions of the convention. But, as the<br />
Co-operative Central Exchange com<br />
prises also societies from Michigan<br />
it can be said that Michigan, too,<br />
was represented at the convention.<br />
Delegate Edw. Murray, of Mil<br />
waukee, was elected chairman; Del<br />
egate P. F. DeMore, of Duluth, vice-<br />
chairman; and Delegate S. Alanne,<br />
of Superior, secretary for the con<br />
vention. John Scholtes, secretary<br />
of the Union Consumers' Society of<br />
Duluth, Mlinn., acted as assistant<br />
secretary for the meeting.<br />
The secretary read a communica<br />
tion from The Co-operative League,<br />
conveying the best wishes of the na<br />
tional organization to the conven<br />
tion. There was also a communica<br />
tion from J. H. Walker, secretary of<br />
the Bureau of Co-operative Societies<br />
of the American Federation of La<br />
bor, as well as a telegram of greet<br />
ing from the Marquette University<br />
Chapter, Intercollegiate Co-opera<br />
tive Society of Milwaukee, Wis.<br />
While waiting for the report of<br />
the credentials committee, an oppor<br />
tunity was given to one delegate<br />
from each society to say a few words<br />
about the history and activities of<br />
their respective societies. This was<br />
done also with a view of giving the<br />
delegates an opportunity to get ac<br />
quainted with each other.<br />
The committee on permanent or<br />
ganization took up the model consti<br />
tution for district leagues as drafted<br />
at the second national convention of<br />
The Co-operative League, held in<br />
Cincinnati, Ohio, in November, 1920.<br />
This constitution was adopted by<br />
the convention with the slight<br />
changes necessary. It was agreed<br />
that each affiliated society pay 15<br />
cents per member dues annually, so<br />
that the annual dues of a society,<br />
f. L, with 200 members would be<br />
$30 a year. One-fourth of this goes<br />
to The Co-operative League.<br />
Other subjects discussed by the<br />
convention were:<br />
The best methods for spreading<br />
co-operative literature and knowl<br />
edge of the Co-operative Movement<br />
within the district.<br />
A uniform system of accounting<br />
among the co-operative stores in the<br />
district. Delegate H. V. Nurmi, of<br />
the auditing department of the Co<br />
operative Central Exchange, read a<br />
paper on this subject.<br />
Samples of literature published<br />
by The Co-operative League were<br />
distributed.<br />
The following were elected di<br />
rectors for the newly-created<br />
league: S. Alanne, of Superior,<br />
Wis.; Mrs. Edw. Solem, of Mineap-<br />
olis, Minn.; Harry J. Toal, of Mil<br />
waukee, Wis.; John Nummivuori, of<br />
Superior, Wis.; P. F. DeMore and<br />
John Scholtes, of Duluth, Minn.; H.<br />
V. Nurmi, of Virginia, Minn. The<br />
following were elected as alter<br />
nates: C. L. Rydmark, of Ashland,<br />
Wis.; Wm. Rutzen, of Glenwood<br />
City, Wis.; Wm. D. Campaigne, of<br />
Spooner, Wis.; and M. J. Bizub, of<br />
Moquah, Wis.<br />
The convention decided that the<br />
next convention of the league be<br />
held in Minneapolis, Minn., in Sep<br />
tember, in the new hall of the<br />
Franklin Co-operative Creamery<br />
Association.<br />
Mr. Clark H. Getts, representing<br />
the Federated Press, acted as toast-<br />
master at the banquet which had<br />
been arranged by a committee on<br />
arrangements, elected jointly by the<br />
Union Consumers' Co-operative So<br />
ciety of Duluth and the Co-operative<br />
Central Exchange. Besides the<br />
"eats," the delegates and visitors<br />
were treated with some orchestra<br />
selections furnished by the workers'<br />
orchestra of Superior, violin and vo<br />
cal solos, dancing by children, etc.<br />
The banqueters were photographed<br />
and one of these photographs will<br />
be on exhibition in the offices of The<br />
Co-operative League.<br />
After a session lasting practically<br />
all day and broken only by short re<br />
cesses for lunch as well as the three-<br />
hour banquet, the first convention of<br />
the Northern States Co-operative<br />
League adjourned at about mid<br />
night on the 18th of March, which<br />
day will go into history as one of<br />
the milestones in the American Co<br />
operative Movement.<br />
ELIMINATION OF WASTE IN THE RESTAURANT<br />
By MARY ARNOLD<br />
Manager, "Our Co-operative Cafeteria," New York City<br />
Abstract of Lecture at The Co-operative League School<br />
There are three kinds of waste<br />
which we should consider: Prod<br />
ucts, time, and, most important of<br />
all, the workers' spiritual force.<br />
The first and second may be<br />
thought of in terms of money waste.<br />
When it comes to simple buying, it<br />
is pretty easy to determine whether<br />
you are getting a thing for 10, 12<br />
or 15 cents, or whether you are pay<br />
ing more than you should for prod<br />
ucts. Buying is so largely an indi<br />
vidual problem that we will not dis<br />
cuss it in detail. In a cafeteria it<br />
is important to buy the exact article<br />
you want. The demand is the im<br />
portant factor, and it is here that<br />
the most waste is apt to occur, be<br />
cause it is not so obvious as in the<br />
cost of products.<br />
One of our jobs is to know ex<br />
actly what people want. It is nec<br />
essary to study the custom. Before<br />
opening a place we make up ou»<br />
minds what class we are going to<br />
hit for. We find that men and wom<br />
en like entirely different things;<br />
young and old women and young<br />
and old men like different things.<br />
If we are going to buy successfully<br />
without waste we must know ex<br />
actly what our group wants. Young<br />
women between 15 and 25 i.ll like a<br />
lot of sugar in their desserts, but<br />
every year the desire for sugar<br />
grows less intense, so that for peo<br />
ple of 50 you would cut your sugar<br />
in half. College boys are different<br />
in their tastes from young women,<br />
and prefer volume to quality.
98 <strong>CO</strong>-<strong>OPERATION</strong><br />
Waste is not a question of what is<br />
left over, for there should be no left<br />
overs if the quality is right. It is a<br />
question of making the article hit<br />
the demand.<br />
It is essential to know the inten<br />
sity of demand. In establishing a<br />
restaurant you must know the num<br />
ber of people to be fed, the number<br />
compared with the acreage, and the<br />
number of other similar places. Also<br />
the character of demand. What kind<br />
of groups, the tastes, the sex, age,<br />
etc. Your facts should be so col<br />
lected and well calculated that your<br />
turnover will be immediate and the<br />
maximum number of people served.<br />
In a cafeteria these careful<br />
studies determine the difference be<br />
tween profit and loss. In the first<br />
place, we find that one of our big<br />
gest problems is the exact measure<br />
ment of the thing that is to be sold<br />
at a given price. In the beginning<br />
we discovered the first month that<br />
we were §80. short according to our<br />
books. By carefully shaving ever<br />
so slightly the portions of meat, less<br />
sugar in desserts, etc., we found<br />
when the second report was read<br />
that we were §120 to the good.<br />
Nothing should ever come back to<br />
the kitchen from the plates in large<br />
quantities. If the same thing comes<br />
in on two plates it is the manager's<br />
job to fly to the kitchen and find out<br />
what is the matter with that article.<br />
Before serving, everything must be<br />
tasted by the manager or assistant<br />
manager.<br />
In cooking calculate short on<br />
things that cannot be used later, as<br />
for instance, certain desserts. Such<br />
things as meat, potatoes and some<br />
vegetables can be provided in large<br />
quantities and used if left over.<br />
Watch the first half hour for replac<br />
ing articles that move fast. Some<br />
things have to be replaced twice.<br />
The manager's job keeps her going<br />
back from the dining room to the<br />
kitchen with reports.<br />
Our wages are running almost as<br />
high in percentage as our food costs.<br />
Waste in labor is quite as expensive<br />
as waste in food. It is necessary<br />
that while people are working they<br />
should earnestly work. Their work<br />
should be so arranged that they can<br />
utilize their time to the best advan<br />
tage. It is also important to have<br />
the right person for the job. There<br />
is often much waste because people<br />
are not fitted to the job. This is a<br />
loss for the management and a loss<br />
for the employee. One of the things<br />
to be developed in the future is this<br />
fitting of the person to the job.<br />
The manager's duty is to do every<br />
job in the place: wash the dishes,<br />
clean the coffee urn, serve the food,<br />
etc., timing herself on each partic<br />
ular job until the exact knowledge<br />
is attained. For instance, of the<br />
length of time needed to cut the<br />
bread and the number of slices to<br />
the loaf, etc., may be taken as a test.<br />
This must be done without speeding<br />
up or soldiering.<br />
Cost accounting in labor is one of<br />
our biggest concerns. Schedules<br />
should show that the workers are<br />
using the time to the best advantage.<br />
The third factor in waste is the<br />
biggest element. This is the waste<br />
of spirit applied to the work itself.<br />
It is a problem to fit people to the<br />
job in which they are primarily in<br />
terested. We all have to be taught<br />
the technique of the job first. How<br />
to do it in the best way. Then the<br />
thing to remember is that it is the<br />
result that should be asked of us.<br />
There is room for endless self-ex<br />
pression in a cafeteria if every op<br />
portunity is given to bring it out.<br />
The jobs in a cafeteria range<br />
themselves; first, dishwashing; sec<br />
ond, salad making; third, serving at<br />
counter. Once the technique is<br />
learned, there are many ways of<br />
carrying on the work, just as well<br />
as in any executive work. Self-<br />
expression is possible in making sal<br />
ads, for instance. There is a great<br />
difference in a day of drudgery and<br />
a day that is full of self-expression.<br />
We care a great deal about this.<br />
The hours and wages are vital, but<br />
the opportunity for initiative is the<br />
thing that our workers care most<br />
about. The happy work of each in-<br />
dividual worker is the thing that<br />
makes our cafeteria a success.<br />
Every worker is supposed to show<br />
certain definite results. If the man<br />
ager thinks the job can be done in<br />
a better way, she must make the<br />
test and prove her point. Our work<br />
ers are much interested in tests. The<br />
cafeteria is a place where the op<br />
portunity of self-expression in work<br />
is one of the biggest things we as<br />
Co-operators have to face.<br />
Each worker is allowed 80 cents<br />
worth of food for each meal. All<br />
the workers practically become<br />
members and share in the savings-<br />
returns on the same basis as every<br />
other member.<br />
(In Answer to Questions)<br />
We do not keep our cafeteria<br />
open on Sundays because of the<br />
workers' need for rest.<br />
It is better to sell many articles at<br />
<strong>CO</strong>-<strong>OPERATION</strong> 99<br />
low prices than few articles at high<br />
prices.<br />
The question of obviating the<br />
long waiting lines is very difficult to<br />
answer. Our people are very pa<br />
tient, and seem to prefer to come<br />
where they get home-made good<br />
food at a cafeteria than to pay more<br />
and be served quicker at restaurants.<br />
There are always certain groups<br />
who do not like the cafeteria, but it<br />
pays much better than the restan-<br />
rant or tea room. Most of our mem<br />
bers are office workers and do not<br />
mind standing in line.<br />
The ugliness of the tray service<br />
we wish we could overcome some<br />
way.<br />
Ten per cent is the maximum sav<br />
ings-return that we expect to make.<br />
To do this we must have a crowded<br />
place. If the crowd is a minimum<br />
it would amount only to 6 per cent.<br />
EDUCATIONAL WORK AT "OUR CAFETERIA"<br />
By MARION L. NASH<br />
(Discussion Continued)<br />
"Our Cafeteria" was started in<br />
1920 by four people with a capital<br />
of §4,400. After it had been run<br />
ning for five months and showed a<br />
profit, a campaign was started to get<br />
members at $10 per share, with a<br />
limit of individual share-owning of<br />
$200. Posters such as the following<br />
were placed on the wall:<br />
"Do you want to share in the<br />
profits of the Cafeteria?"<br />
"Don't you want to catch the high<br />
cost of living by the tail ? " This was<br />
in the shape of a fish being pulled<br />
up on a line.<br />
Meetings were held and leaflets<br />
distributed. The empty sugar<br />
bowls were used for literature.<br />
There was a membership commit<br />
tee appointed, composed of twelve<br />
people. A green line was drawn to<br />
a room where every day two mem<br />
bers of the committee sat to answer<br />
questions and give out literature<br />
and take in membership money.<br />
Such leaflets as "Our Cafeteria;<br />
How it Works. " "Our Cafeteria;<br />
(See Report, page 103)<br />
How it Grew," were printed and<br />
distributed with small cards with<br />
the address on.<br />
In the first two weeks 112 mem<br />
bers joined. It is better to have<br />
an intensive campaign for one week<br />
only.<br />
Other committees appointed<br />
were: The library, to purchase and<br />
distribute books and pamphlets on<br />
Co-operation; the educational, to<br />
arrange lectures and meetings; the<br />
house, including inspection and dec<br />
oration; and the bulletin committee<br />
to post clippings, reports and no<br />
tices each day on the bulletin board.<br />
Business meetings are held<br />
monthly. About 60 people attend.<br />
The monthly reports and financial<br />
statement are sent to each member<br />
by mail. The society publishes its<br />
own paper, "The Co-operative<br />
Crier."<br />
The future plan is to keep on<br />
starting branches as soon as each<br />
one is self-supporting and firmly<br />
established.
100 <strong>CO</strong>-<strong>OPERATION</strong> <strong>CO</strong>-<strong>OPERATION</strong> 101<br />
THE <strong>CO</strong>-OPERATIVE LEAGUE<br />
DEDICATION OF THE LEAGUE<br />
HOUSE<br />
On Saturday, May 13, <strong>1922</strong>, the<br />
opening of The Co-operative League<br />
House in New York City was cele<br />
brated. Friends of Co-operation<br />
crowded the building. Some came<br />
from out of town from New York<br />
State, from Pennsylvania, New Jer<br />
sey and Connecticut. Letters and<br />
telegrams of greeting and good<br />
THE <strong>CO</strong>-OPERATIVE LEAGUE HOUSE<br />
167 WEST 12th STREET, NEW YORK CITY<br />
wishes were read from members of<br />
the Board of Directors and other<br />
workers in the field from all parts<br />
of the United States. Music was<br />
furnished by an orchestra under the<br />
direction of a member of The<br />
League.<br />
Addresses were made by Albert<br />
Sonnichsen, Emerson P. Harris, Pe<br />
ter Hamilton, Andrew P. Bower and<br />
Agnes D. Warbasse. J. P. War-<br />
Basse presided. Many prominent<br />
workers in the Co-operative Move<br />
ment and well-known leaders in the<br />
field of labor education were pres<br />
ent. Refreshments were served. A<br />
general spirit of happiness and ex<br />
hilaration, inspired by the progress<br />
of The League and the evidences of<br />
its steady development, prevailed.<br />
All of the speeches and the con<br />
versations of the guests rang with<br />
enthusiasm for The Co-operative<br />
League House. It was realized that<br />
after seven years of solid, patient<br />
work and growth, The League was<br />
entitled to a home of its own. The<br />
offices in which the Executive Board<br />
now do their work are comfortable,<br />
beautiful and commodious. Thus<br />
step, by step, year by year, The<br />
League advances.<br />
One of the speakers expressed his<br />
gratification that the Co-operatvie<br />
Movement in the United States was<br />
growing not fast, but slowly. It<br />
must grow slowly, because a sound<br />
Co-operative Movement can grow<br />
no faster than it can educate and<br />
train people to guide it. It is the<br />
steady work of The League that is<br />
building the foundation upon which<br />
a great co-operative structure may<br />
be reared.<br />
PUSH THE MODEL LAW<br />
The model state co-operative law<br />
drafted by the committee on legis<br />
lation of The League, has met with<br />
a gratifying response. Influential<br />
people in Wisconsin, Ohio, Illinois,<br />
New York, and other states, are<br />
bringing the model law to the at<br />
tention of legislators. Mr. J. P.<br />
Busker, secretary of the educational<br />
committee of the Roseland Co-oper<br />
ative Association of Chicago, in<br />
forms us that the Roseland Society<br />
has seen the state representative of<br />
its district about the co-operative<br />
law. This is the right spirit, and<br />
other societies should follow this ex<br />
ample.<br />
In fighting some of the most dan<br />
gerous fakes during the past few<br />
years, The League has learned to its<br />
cost that there is not a single state<br />
with laws which are adequate to<br />
deal with the clever fakers. The<br />
model co-operative law drafted by<br />
The League is especially designed<br />
to cope with this situation. Copies<br />
of the law will be sent on request.<br />
Get behind the model law in your<br />
state, and have it enacted, for the<br />
protection of the public and of co<br />
operative societies.<br />
TABLE OF GROCERY BUSINESS<br />
PROFITS<br />
A very valuable report of a survey<br />
made of the retail grocery stores in<br />
New York City has been issued by<br />
the New York State Department of<br />
Farms and Markets. The report<br />
contains tables giving the percent<br />
ages of gross profit on various com<br />
modities, and other useful informa<br />
tion. An especially valuable study<br />
is made of the operating expenses<br />
and profits of "cash-and-carry"<br />
stores, as compared to "credit-and-<br />
delivery" stores. The report is writ<br />
ten in popular style, and the points<br />
are made clear by means of graphic<br />
illustrations.<br />
The board of directors of each<br />
society should study this report care<br />
fully. Copies may be had on appli<br />
cation to Herschel Jones, Director of<br />
the Department of Farms and Mar<br />
kets, 90 West Broadway, New York<br />
City.<br />
ADVICE TO STORE MANAGERS<br />
Buying<br />
It is absolutely necessary to keep<br />
the stock down and to turn it over<br />
as many times a year as possible.<br />
A loose-leaf book or The League's<br />
order blanks should be used. Some<br />
managers like the card system, and<br />
keep an index near the cash register,<br />
and each sale is entered at the time<br />
on the correct card. These cards<br />
show stock on hand when inventory<br />
was last taken, new stock added,<br />
and stock sold. This plan gives a<br />
perpetual inventory. It entails much<br />
work when many lines are carried,<br />
and can rarely be carried out in co<br />
operative grocery store, if there is.,<br />
lack of help. S**^-<br />
In buying a new line of goo/fs "the<br />
price and terms should be favorable.<br />
Take no chances; buy in small quan<br />
tities when the price is not higher<br />
than in large quantities. There is<br />
much time saved by ordering by<br />
mail. You order when you need<br />
what you need in half the time con<br />
sumed in seeing salesmen. It is wise<br />
to go to market frequently and to<br />
keep in touch with wholesale prices<br />
through a trade journal. Avoid<br />
buying on consignment or on com<br />
mission. Get a carbon copy of ev<br />
ery order you give a salesman, and<br />
keep a copy of orders sent by mail.<br />
You can get order blanks and en<br />
velopes from all wholesalers. Dis<br />
count your bills. Pay as soon as<br />
invoices come in; this makes less<br />
bookkeeping. Enter on the check<br />
the date of the bill and check pays.<br />
If the turnover is not large it will<br />
be found hard to buy in the right<br />
quantities and at right wholesale<br />
prices. Case lots from the jobber is<br />
not a good plan. Twenty-five case<br />
lots from the wholesaler direct is<br />
much better when the business is<br />
big enough. Haul your goods if pos<br />
sible. This saves a great deal.<br />
Judge what people want by what<br />
they have bought before. In .open<br />
ing a store be conservative. Do not<br />
put in a large line of specialties.<br />
Visit neighboring stores to find out<br />
the special needs of the vicinity.<br />
Be courteous to salesmen, but let<br />
them know that you are too busy to<br />
give them more time than necessary.<br />
It is wise to compare prices before<br />
giving your orders. Tell them you<br />
will mail your order later, and then<br />
find out how much others are quot<br />
ing. Be not afraid to say "no" to a<br />
salesman. Remember, you are<br />
spending other people's money ev<br />
ery time you give an order. Spend<br />
it with the same care you would<br />
your own. The directors should al<br />
ways be consulted before any un<br />
usual order is given.<br />
Fruit and Vegetable Department<br />
' The manager must pay particular<br />
attention to the purchase of fruits,
102 <strong>CO</strong>-<strong>OPERATION</strong><br />
vegetables and other perishables.<br />
Some competent person will do well<br />
to visit the early morning farmers'<br />
market (if there is one) two or three<br />
times a week and buy on the same<br />
terms as the jobbers. If the man<br />
ager buys from peddlers he should<br />
examine every box or basket of<br />
goods carefully. He should ask over<br />
the phone what the jobbers are get<br />
ting for green goods before he pays<br />
the peddler's prices. He must buy<br />
conservatively. Better to run short<br />
before night than to have goods<br />
spoil over night. Customers should<br />
not be allowed to handle the ber<br />
ries, tomatoes, melons, etc., and pick<br />
out the best ones. Either put them<br />
under cover where they cannot be<br />
touched, or establish a rule to this<br />
effect. Every lot of such goods<br />
should be quickly graded and put<br />
into different boxes, so that best<br />
goods should bring high enough<br />
prices to make up for slight losses<br />
on the poorest grades. Sometimes<br />
five or six grades can be found in<br />
one shipment of cucumbers, toma<br />
toes, pears, etc. This reduces tempta<br />
tion for customers to try to grab the<br />
best. It is fairer to all. Quote the<br />
different prices over the phone when<br />
taking delivery orders; and there<br />
will be no necessity for palming off<br />
the cheapest goods to delivery cus<br />
tomers. Immediately such an order<br />
is taken lay aside the goods desired,<br />
so that they will not be sold by oth<br />
er clerks. Do not put vegetables<br />
and fruit on the floor of the store.<br />
Meat Department<br />
The manager should see to it that<br />
a competent meat cutter is put in<br />
charge of the meat department. All<br />
the expenses and sales should be<br />
kept separate from the rest of the<br />
accounts. Some stores in country<br />
towns buy native stock and employ<br />
a meat cutter by the day according<br />
to the need. There is a saving in<br />
making lard and sausage meat at<br />
the store. See that the ice box is<br />
kept clean.<br />
<strong>CO</strong>-<strong>OPERATION</strong> ENDORSED BY<br />
LABOR FEDERATIONS<br />
At the Pennsylvania Federa<br />
tion of Labor Convention at Scran-<br />
ton the address of fraternal greet<br />
ings in behalf of The Co-operative<br />
League, by Andrew P. Bower, was<br />
enthusiastically received. Mr. Bow<br />
er, who, in addition to being vice-<br />
president of The League, was elect<br />
ed third vice-president of the Penn<br />
sylvania Federation of Labor, was<br />
instructed "to go the limit" in car<br />
rying on educational work among<br />
the co-operatives in Pennsylvania.<br />
The Labor Federation will pay his<br />
expenses. Mr. Bower reports that<br />
he had never experienced so gratify<br />
ing a reception in advocating Co<br />
operation before the federation con<br />
vention as he had this year. As an<br />
evidence of the need for co-opera<br />
tive education, it was reported at<br />
the convention that the disastrous<br />
experience of the Tri-State Whole<br />
sale, which cost organized labor in<br />
Pennsylvania $213,000, would nev<br />
er have occurred if the warnings is<br />
sued by The Co-operative League<br />
had been heeded. The Tennessee<br />
Federation of Labor also took a very<br />
favorable attitude towards Co-oper<br />
ation. Mr. W. F. Seigenthaler, a<br />
loyal Co-operator, at a great per<br />
sonal sacrifice, attended the con<br />
vention at Memphis and delivered<br />
the greetings of The League. The<br />
convention adopted a resolution en<br />
dorsing and approving the work of<br />
The Co-operative League, and in<br />
structing the officers of the Federa<br />
tion to take up the study of Con<br />
sumers' Co-operation and to further<br />
its development as far as they can.<br />
Mr. Seigenthaler reports that an<br />
amusing incident occurred in the<br />
committee on resolutions. The only<br />
person in the committee familiar<br />
with Rochdale Co-operation was a<br />
woman school teacher. Men who<br />
had been in the labor movement<br />
many years had never heard of<br />
Rochdale Co-operation, and heard<br />
of it for the first time from the lips<br />
of a woman.<br />
A <strong>CO</strong>NFERENCE OF <strong>CO</strong>-OPERA<br />
TIVE MANAGERS IN<br />
MINNESOTA<br />
<strong>CO</strong>-<strong>OPERATION</strong><br />
NEWS AND <strong>CO</strong>MMENT<br />
A realization that united action<br />
for their own benefit would be<br />
helpful has come to several co-oper<br />
ative societies in Minnesota, which<br />
hitherto have held aloof from all<br />
central organizations. As an indi<br />
cation of this new spirit, a confer<br />
ence of co-operative store managers<br />
in the state of Minnesota was held<br />
at the Ryan Hotel in St. Paul, April<br />
27. Eleven societies werei repre<br />
sented by their managers, one soci<br />
ety having sent a board member<br />
along with the manager to the con<br />
ference.<br />
The following co-operative stores<br />
were represented at the conference:<br />
Rothsay Co-operative Association,<br />
Rothsay; People's Co-operative Mer<br />
cantile Company, Dillworth; Farm<br />
ers' Co-operative Mercantile Com<br />
pany, Hoffman; Minnesota Lake<br />
Farmers' Co-operative Mercantile<br />
Company, Minnesota Lake; New<br />
Richland Farmers' Co-operative<br />
Company, New Richland; Young<br />
America Co-operative Store Com<br />
pany, Young America; Greenland<br />
Farmers' Equity Exchange, Elysian;<br />
Farmers' Mercantile Company, Star-<br />
buck; Staples Co-operative Compa<br />
ny, Staples; Farmers' Co-operative<br />
Company, Lamberton; Bethel Co<br />
operative Store Company, Bethel.<br />
The chief topic discussed was the<br />
question of permanent organization.<br />
It was agreed that another confer<br />
ence should be held, as the attend<br />
ance at this conference was consid<br />
ered too small to start any kind<br />
of permanent organization. The<br />
planned new conference will be<br />
held some time in June and a com<br />
mittee of three was elected to make<br />
arrangements for the same.<br />
Mr. S. Alanne, head of the edu<br />
cational department of the Co-op<br />
erative Central Exchange of Supe<br />
rior, Wis., was also present at the<br />
103<br />
conference. He explained that<br />
about thirty of the fifty-eight co<br />
operative societies affiliated with<br />
the Co-operative Central Exchange<br />
are located in Minnesota, about half<br />
of these being regular co-operative<br />
stores and the other half co-opera<br />
tive buying clubs.<br />
The conference was an outcome<br />
of circulars which had been sent<br />
out by Mr. J. L. Anderson, manager<br />
of the Rothsay Co-operation Asso<br />
ciation. Mr. Anderson acted as<br />
chairman at the conference.<br />
"OUR CAFETERIA"<br />
The annual report of "Our Co<br />
operative Cafeteria," of New York<br />
City, shows a total income from<br />
meals during the year ending March<br />
31, <strong>1922</strong>, of $190,247.93. This<br />
takes into account the yearly busi<br />
ness of two cafeterias, and only<br />
three months' operation of the new<br />
cafeteria in the financial district.<br />
With three cafeterias in operation,<br />
the report for next year will prob<br />
ably show a business of about<br />
$250,000.<br />
The net surplus-savings for the<br />
past year amounted to $20,829, of<br />
which $1,886 was spent on co-oper<br />
ative education. Large quantities<br />
of the literature of The League are<br />
distributed at the cafeterias as a<br />
part of the steady educational work<br />
of the society. Members of the so<br />
ciety received $2,754 in savings-<br />
returns on their meals, in addition<br />
to interest on their shares. Thou<br />
sands of dollares were set aside to<br />
cover depreciation of fixtures and<br />
equipment, and amortization.<br />
The greater part of the net earn<br />
ings of the society was put aside<br />
as a surplus fund. About $13,000<br />
is available as a reserve.<br />
The reports of "The Co-operative<br />
Cafeteria" are remarkably clear and<br />
detailed. Members receive fre<br />
quent reports on the condition of the<br />
business. The books of the society
104 <strong>CO</strong>-<strong>OPERATION</strong> <strong>CO</strong>-<strong>OPERATION</strong> 105<br />
are inspected monthly by a firm of<br />
public accountants, and a certified<br />
statement has been issued semi-<br />
annually, consisting of the balance<br />
sheet and six months' income ac<br />
count. Such statements in the fu<br />
ture will be issued every three<br />
months.<br />
The society has over 750 mem<br />
bers. Its restaurants are at 52 East<br />
25th Street, 54 Irving Place, and 22<br />
Thames Street. "^<br />
THE GREENWICH VILLAGE<br />
LAUNDRY<br />
The Greenwich Village Co-opera<br />
tive Laundry in New York City con<br />
tinues to make progress.<br />
Several times in the last six<br />
months it has had to put in more<br />
washing machines and enlarge its<br />
force. The laundry is owned by<br />
the Greenwich Village Co-operative<br />
Society, which is composed mostly<br />
of artists, writers and other pro<br />
fessional people.<br />
This is a laundry in which no de<br />
structive chemicals and no bleaches<br />
are used. Clothes are washed with<br />
the same personal care as at home,<br />
regardless of the expense. The<br />
prices charged are no higher than<br />
other hand laundries; but, unlike<br />
the so-called "hand laundries," that<br />
are really just receiving stations for<br />
big steam laundries, this one actu<br />
ally does hand work. This laundry<br />
aims to wash the clothes of its mem<br />
bers better and more safely than<br />
they can be washed elsewhere.<br />
Strenuous opposition from private<br />
laundrymen in the vicinity has been<br />
aroused by the success of the co<br />
operative laundry. The profit-mak<br />
ing laundries have resorted to every<br />
trick possible to destroy this com<br />
petitor. Its delivery boys were in<br />
duced to lose packages. When this<br />
failed, the boys themselves disap<br />
peared, several of them in succes<br />
sion. Packages were stolen, aeid<br />
was maliciously thrown on clothes<br />
after they were washed. By this<br />
means holes were burned in the<br />
wash. Employees have been offered<br />
higher wages and other inducements<br />
to get them away from the laundry.<br />
Still the business is three times lar<br />
ger than it was six months ago.<br />
The laundry begun in a small way<br />
and expands gradually. It now has<br />
three power washers, a mangle, a<br />
dry room and employs nine persons,<br />
with every indication of continuous<br />
growth.<br />
ROSELAND <strong>CO</strong>-OPERATORS<br />
SAVE 110 PER CENT<br />
The Roseland Co-operative Asso<br />
ciation, of Chicago, affiliated with<br />
The Co-operative League,. makes a<br />
savings-return to its members and<br />
non-members equal to about 90 per<br />
cent of the invested capital. It<br />
has a grocery and meat market, a<br />
branch store, a restaurant, club<br />
rooms and a library.<br />
During the same period hundreds<br />
of thousands of dollars were being<br />
lost by a gigantic Chicago fake "co<br />
operative."<br />
The Roseland Society had a turn<br />
over of $195,605 in 1921, a decrease<br />
of $12,000 as compared with the<br />
previous year. In view of the steady<br />
decline of prices during the year,<br />
these figures really represent a gain<br />
in the volume of business. The net<br />
surplus-saving amounted to ,$6,332.-<br />
76. The society paid $359.50 in in<br />
terest on capital and loans, it spent<br />
$363.56 for educational purposes,<br />
and paid savings-returns amounting<br />
to $5,024. As the subscribed capi<br />
tal stock of the society is only $5,-<br />
720, the savings-returns represent a<br />
return of about 90 per cent of the<br />
invested capital. In addition to<br />
these savings, the sum of $485.70<br />
was retained for reserves, after pay<br />
ing all expenses, interest and re<br />
turns.<br />
The net surplus-saving of $6,-<br />
332.76 is what profit-making busi<br />
ness would call profits. On an in<br />
vestment of $5,720 this represents<br />
a return (or "profit") of 110 per<br />
cent. That is about twenty times<br />
I<br />
more return on investment than the<br />
average capitalist gets. We insist<br />
that if the people will but organize<br />
and conduct true co-operative en<br />
terprises, they can beat the capital<br />
ist at his" own game.<br />
BALTIMORE SOCIETY HELPS<br />
MINERS<br />
In spite of the fact that it has<br />
not yet been in a position to make<br />
savings for its members, the Organ<br />
ized Labor Co-operative Society of<br />
Baltimore, Md., has rendered a<br />
great service. During the past few<br />
months, the sum of $15,000 was dis<br />
pensed through the co-operative<br />
store for the relief of the striking<br />
miners of West Virginia and West<br />
ern Maryland. Every dollar spent<br />
in the co-operative society for food<br />
for the strikers bought more goods<br />
than could be gotten through pri<br />
vate firms. Six carloads of flour,<br />
bacon and other staples have so far<br />
been supplied through the co-op.<br />
This society has a membership of<br />
more than a thousand workers. It<br />
has an active women's guild, which<br />
is developing plans for a co-opera<br />
tive camp to be conducted this<br />
summer at the Patapsco forest re<br />
serve. At a small cost, camping<br />
facilities will be provided for the<br />
families of the Co-operators.<br />
The store operated by this soci<br />
ety is showing a steadily growing<br />
business. Overhead costs have been<br />
materially reduced. The Rochdale<br />
plan is followed, and the society<br />
does not hesitate to seek the assist<br />
ance of The League, with which it<br />
is affiliated.<br />
<strong>CO</strong>-<strong>OPERATION</strong> IN SHANGHAI<br />
A co-operative society has just<br />
been organized at the Fuh-Tan Uni<br />
versity, in Shanghai, China. The<br />
name of the society is The Ping<br />
Ming Co-operative Association. We<br />
are assured that this is the first co<br />
operative to be organized in China.<br />
This pioneer group is in touch with<br />
The League, and is profiting by<br />
American education and experience.<br />
<strong>CO</strong>NCERNING MAINTENANCE<br />
OF WAY BROTHERHOOD<br />
In the May number of <strong>CO</strong>-OPERA<br />
TION we were in error m the mat<br />
ter published under the caption, "A<br />
Badly Advised Rail Brotherhood."<br />
The United Brotherhood of Main<br />
tenance of Way Employees and<br />
Railway Shop Laborers is not and<br />
never has been in the hands of a<br />
receiver by order of any court. The<br />
only order restraining the Brother<br />
hood from withdrawing its bank de<br />
posits was one issued in the state of<br />
Ohio. We are advised by the Grand<br />
President of the Brotherhood that,<br />
thougli the organization has suf<br />
fered financial loss through the wild<br />
and frenzied orgie of spending in<br />
dulged in by former officers in in<br />
dustrial enterprises, the total loss<br />
to date, as disclosed by the certi<br />
fied audit, will not approach one-<br />
sixth of the amount mentioned in<br />
our May article.<br />
It is most gratifying to learn that<br />
the losses suffered by this Brother<br />
hood are not so great as had been<br />
supposed. But what is more grati<br />
fying is the fact that this organiza<br />
tion now has as officers men who are<br />
truly interested in real Co-operation,<br />
and who can be relied upon to pro<br />
tect the members against the wild<br />
schemes into which labor bodies<br />
now seem so prone to enter.<br />
CENTRAL <strong>CO</strong>MMITTEE OF THE<br />
I. C. A. MEETS<br />
The Central Committee of the In<br />
ternational Alliance met at Milan,<br />
Italy, April 10 and 11. It received<br />
the report of its committee of inves<br />
tigation, which had just returned<br />
from Russia. The report showed<br />
that the distributive societies had<br />
been given their full freedom, and<br />
are no longer dominated by the<br />
government; in fact, they have a<br />
larger degree of freedom than have<br />
the societies in many other coun<br />
tries. The next meeting of the Cen<br />
tral Committee will be held in Ham<br />
burg in the spring of 1923.<br />
.
106<br />
MARGARINE IN DENMARK<br />
We drove in an automobile from<br />
Ringsted to Haslev, in Denmark,<br />
last summer. Along the road we<br />
stopped at a co-operative store, in<br />
the remote country. In front of the<br />
store stood a wagon which had<br />
stopped to deliver margarine. Here<br />
in the rich dairy country of Den<br />
mark, that makes the best butter in<br />
the world, the co-operative store<br />
was selling margarine to the farm<br />
ers. Why is it? Because the farm<br />
ers get such good prices for the but<br />
ter they export, and they can buy<br />
margarine so cheaply they have not<br />
the heart to eat butter. Strange as<br />
it may seem, the Danish co-opera<br />
tive wholesale has no creamery or<br />
butter factory, but it has a marga<br />
rine factory. This is one of the<br />
strange results of economic deter<br />
minism which directly affects the<br />
Co-operative Movement. J. P. W.<br />
EVERY MEMBER PRESENT AT<br />
ANNUAL MEETING AT<br />
PINE BLUFF<br />
The Pine Bluff Co-operative Asso<br />
ciation, Arkansas, runs a general<br />
store. At the last meeting of the<br />
stockholders a savings-return, to the<br />
amount of $2,800 was distributed<br />
back to the stockholders. The Asso<br />
ciation paid to all stockholders the<br />
interest on their capital stock, which<br />
totaled approximately $500. The sum<br />
of $1,000 was left in the undivided<br />
surplus-savings column to be dis<br />
tributed later as the stockholders see<br />
fit. To those of the laboring classes<br />
who have never attempted the co<br />
operative idea, please do not do so<br />
unless you are absolutely sure you<br />
know what you are doing. Unless<br />
you are loyal to the core, unless you<br />
can keep your head when the entire<br />
world goes to pieces, and you see<br />
crashing to earth all the cherished<br />
idealized dreams of Co-operation, and<br />
unless you have a strong heart and<br />
can withstand shocks of any descrip<br />
tion and intensity, you had better<br />
<strong>CO</strong>-<strong>OPERATION</strong><br />
think twice before taking the leap<br />
into the turbulent sea of Co-opera<br />
tion. Pandora's box, with all its<br />
troubles, was a piker compared to<br />
what trying to operate a co-operative<br />
store in Pine Bluff has demonstrated.<br />
As an illustration: One of the mem<br />
bers of the board began his duties as<br />
a director with a high heart that<br />
dared fate to come out and do its<br />
worst. The snow is now beginning<br />
to show in his raven locks. The box<br />
of trouble opened when we unlocked<br />
the co-operative store. You who<br />
read this and contemplate a voy<br />
age of Co-operation will do well<br />
to consider many things. First, is<br />
this: generally speaking, all men are<br />
liars by the clock; they'll become all<br />
"het" up about an idea, ready to go<br />
through fire for it at the time; then<br />
in a few days they have forgotten it.<br />
Remember that the sting has never<br />
been taken out of human nature. All<br />
the meanness and cussedness that<br />
ever possessed a group of people will<br />
come out when you begin your co<br />
operative store. The crop of sleep<br />
less night and tales of calumny that<br />
are visited upon you as a director will<br />
be countless.<br />
And now again I will say that if<br />
you contemplate suicide, forget it,<br />
and try operating a co-operative<br />
store, and you'll find life just one<br />
sweet nightmare after another; and<br />
then you'll get mad and want to live<br />
in order to see each one of the knock<br />
ers of your cherished dream die a<br />
hard death.<br />
But the lane ends, and opening be<br />
fore us here, in Pine Bluff, we be<br />
lieve is the turning point. Out of<br />
desperation and despair; out of all<br />
the mean things that could be said<br />
about the store, it still stands, after<br />
two years of operation, as a monu<br />
ment to organized labor. It is still<br />
in its infancy, but with virtually ev<br />
ery one of the two hundred and fifty<br />
stockholders present at the meeting<br />
never before were they so impressed<br />
with the magnitude and soundness of<br />
the business.<br />
The Union Labor Bulletin.<br />
W. S. BUSICK.<br />
<strong>CO</strong>-<strong>OPERATION</strong> 107<br />
WORD FROM THE FIELD OF ACTION<br />
<strong>CO</strong>NFERENCE OF MASSACHUSETTS<br />
BAKERIES<br />
The "Conference of Massachusetts Co<br />
operative Bakeries" is a league which be<br />
gan with a conference and which contin<br />
ues to hold conferences.<br />
It was formed more than a year ago, and<br />
now meets bi-monthly, each time in a dif<br />
ferent member city. The conference idea<br />
originated in New Bedford with the presi<br />
dent of the local bakery, Mr. J. Goldberg.<br />
Before there were six bakeries in Massa<br />
chusetts, each going its separate path, in<br />
management, in buying, in educational<br />
methods (or lack of educational methods).<br />
The conference 'brought them together.<br />
They are now in close communication with<br />
each other. They have taken lessons in<br />
store management, in proper sanitation, in<br />
types of machinery required. They passed<br />
on their experience to a new co-operative<br />
bakery opened last summer in Springfield,<br />
now the largest co-operative bakery in the<br />
state. Small savings in bakery materials<br />
were effected by a sort of collective con<br />
tract. A (plan for the future is the pur<br />
chase of flour through one office, in lots<br />
of five and ten cars. With a more stable<br />
market this may yet come.<br />
Another matter of collective buying<br />
among the bakeries is the purchase of coal<br />
in large quantity for the shareholders. I<br />
am now writing to a Pennsylvania mine for<br />
information on a purchase of 100 cars of<br />
coal for distribution in our eight cities.<br />
Springfield sold coal to its shareholders<br />
last winter at a saving of $1 per ton, and<br />
used eight cars, starting late in the year.<br />
I have left for the end, and purposely,<br />
the educational work of the conference. In<br />
the past this part of co-operative work has<br />
been much neglected; we are just begin<br />
ning to realize the need of more publicity,<br />
more training in the need and aspirations<br />
of Co-operation. We have now under con<br />
sideration the use of your four-page Asso<br />
ciated Magazine, the fourth page to be<br />
printed in Yiddish. Through the confer<br />
ence we were able to arrange a number of<br />
mass meetings and lectures in all of our<br />
cities. With the Associated Magazine we<br />
expect to reach every shareholder in the<br />
state. In addition, we are planning to<br />
translate into Yiddish some of the leaflets<br />
you have sent up, and use them in this<br />
way. We would like to get something novel<br />
into our meetings by the use of motion<br />
picture reels or slides on phases of the<br />
Co-operative Movement.<br />
MEYER GOLDBERG,<br />
Conference of Massachusetts Co-operative<br />
Bakeries.<br />
HILLMAN NOW ON RIGHT TRACK<br />
Your letter of recent date was read at<br />
our last stockholders' meeting, and they<br />
decided to join The League. We have had<br />
lots of experience with the Co-operative<br />
Movement in Seattle of recent years. We<br />
were part of the old Consumers' Co-oper<br />
ative, organized by Messrs. Ames, Clarke<br />
and Lund. We organized a few make<br />
shifts after the failure of the consumers.<br />
Finally, we have got on the right path.<br />
In a small locality with seven competit<br />
ors, we held our overhead down to the<br />
lowest figure. Our surplus-saving was di<br />
vided as follows: Members, 6 per cent;<br />
non-members, 3 per cent. The first few<br />
months of our experience from August to<br />
December was a hard battle to fight, owing<br />
to the big slump in the shipbuilding in<br />
Seattle; also to the fake co-operatives and<br />
other labor wildcat schemes that grew out<br />
of the boom here during the war.<br />
Our organization is small, but if we only<br />
had 100 more like us in the state of Wash<br />
ington they could not say Co-operation is a<br />
failure in the Pacific Northwest.<br />
President, Hillman Independent Co-opera<br />
tive.<br />
R. BUCHANAN,<br />
Seattle, Wash.<br />
EDUCATION AT SCRANTON<br />
The Co-operative Society in Scranton,<br />
Pa., has organized a study class in Co-oper<br />
ation, using the course arranged by The<br />
League. We have twenty-five students en<br />
rolled and quite an interest worked up.<br />
Expect to continue the work until the<br />
warm weather comes, and then start in<br />
next fall again.<br />
The Central Labor Union has endorsed<br />
our plan and has given $50 toward the<br />
work. Expect to double the membership.<br />
Since January the business has increased<br />
just about 100 per cent in our co-operative<br />
store, and new members are enrolling. I<br />
think our class work has helped us to make<br />
a new start. The trouble was these people<br />
wanted to do big things, but as yet they<br />
have not learned to do the little ones. A<br />
clear understanding, simplified and ex<br />
plained in working-class language, will<br />
save the co-operative organization.<br />
Scranton, Penn.<br />
MARTIN WEBER.
108 <strong>CO</strong>-<strong>OPERATION</strong> <strong>CO</strong>-<strong>OPERATION</strong><br />
CLEVELAND DAIRY MACHINERY<br />
We are making progress, not only in<br />
getting the Co-operative undertaking be<br />
fore the workers of Cleveland, but also in<br />
our preparation for operation. Yesterday<br />
a carload of machinery and equipment was<br />
unloaded and this was all done by the be>ys<br />
who have 'been working hard to bring the<br />
project to the point where it now is. In<br />
this way we are making numerous sav<br />
ings to the Co-op, thus keeping the share<br />
capital as intact as we can.<br />
O. J, ARNESS.<br />
Cleveland, Ohio.<br />
NEW YORK MILLS SMALL BUT<br />
STRONG<br />
We are glad to be able to say that the<br />
business done by our store during 1921<br />
was most satisfactory. Our gross sales<br />
were over $45,000, and our net surplus<br />
savings over $4,200. We paid interest of<br />
6 per cent on our outstanding capital<br />
stock and placed 10 per cent of our sur<br />
plus savings in our general reserve fund,<br />
2 per cent in our educational reserve fund,<br />
and paid savings returns to customers as<br />
follows:<br />
8 per cent to members on cash and carry<br />
sales.<br />
5 per cent to members on house delivery<br />
sales.<br />
4 per cent to non-members on cash and<br />
carry sales.<br />
2% per cent to non-members on house<br />
delivery sales.<br />
Also 8 per cent on employees' salaries.<br />
There are about 125 shareholders, who<br />
thus far have given the store loyal support.<br />
W. S. H. BAKER, Secretary,<br />
The Co-operative Store Association.<br />
New York Mills, N. Y.<br />
(The practice adopted by this associa<br />
tion of deducting 3 per cent from the re<br />
bate of members who insist on house deliv<br />
eries is a good one. Members who receive<br />
house delivery service should pay for it.)<br />
THE NEW BEDFORD BAKERY<br />
This bakery is in existence over three<br />
years, and doing a business of over $50,-<br />
000 annually. It is primarily a Jewish<br />
business, as all the shareholders are Jews.<br />
We have bought a lot and are planning to<br />
build a modern bakery the coming summer.<br />
We would like very much to interest<br />
the American public in our co-operative,<br />
so that when we build our bakery we could<br />
put in an oven for American bread also.<br />
Inasmuch as all efforts to unionize the<br />
American bakeries have failed, and all<br />
strikes among them have been lost, we<br />
could be of great help to the union bakers.<br />
B. LEVINE, Manager,<br />
Labor League Co-operatic.<br />
New Bedford, Mass.<br />
FROM THE LEAGUE'S EURO<br />
PEAN <strong>CO</strong>RRESPONDENT<br />
<strong>CO</strong>-OPERATIVES THE ONE HOPE IN<br />
EUROPE<br />
My most serious interest in the Co-op<br />
erative Movement has developed during<br />
the last year, in which time I have been in<br />
England, Ireland, France, Germany, Aus<br />
tria, Hungary and Italy, studying the social,<br />
economic, and political situations in these<br />
countries, first as an independent student<br />
and later as a correspondent. Certain<br />
things stand out glaringly in all these<br />
countries. One is the complete collapse<br />
of the social democratic idea and ideal. I<br />
have not been in Russia, but living here<br />
in Vienna, where scores of refugees pour<br />
through daily, and reading Karl Radeck's<br />
own very frank confessions in the "Red<br />
Flag," talking with Russians in the immi<br />
gration houses in London, and comparing<br />
the evidence with the boishevik experiment<br />
in Hungary, it all tells one story of the<br />
utter hopelessness of the social democratic,<br />
Marxian, bolshevik idea.<br />
The tragedy of the socialist failure in<br />
Austria, Hungary, Russia, and Italy, is that<br />
the masses of the people are left with<br />
nothing to take its place. A very large<br />
number of the idealists were actually or<br />
nominally in the socilaist camp. Now, those<br />
among them who have even a degree of<br />
intellectual honesty realize that they have<br />
been following false gods; but where else<br />
to look? The result is an appalling cyni<br />
cism. I cannot help but feel that we are<br />
entering the "Twilight of the Gods."<br />
I don't see any rifts in the present reac<br />
tion. Instead it is deepening everywhere.<br />
So that out of all this welter of hate<br />
and blindness there seems to be very little<br />
to which one can cling. But what little<br />
there is in human association that seems to<br />
stand up under the test is invariably the<br />
free, spontaneous, decentralized Move<br />
ment, and springing out of everyday, hu<br />
man needs. So in Bavaria the co-opera<br />
tives have come blithely through every<br />
thing, and are stronger than ever. In Ire<br />
land, where I spent two weeks last August,<br />
the co-operatives were the only associa<br />
tions able to keep their heads above the<br />
political storm—although the English at<br />
tacks on the creameries, waged for God<br />
knows what reason, brought even them into<br />
the maelstrom. Still it was inherent in<br />
their quality that they managed to keep<br />
out as long as they did. In Italy, where I<br />
spent six weeks during and after the metal<br />
workers' fight last autumn, it was a joy to<br />
go to San Vittorio and see there a real ex<br />
ample of actual communism, the result of<br />
twenty years' co-operative activity.<br />
DOROTHY THOMPSON.<br />
Switzerland.<br />
PUBLICATIONS<br />
OF THE <strong>CO</strong>-OPERATIVE LEAGUE<br />
HISTORICAL. Per Copy<br />
3. Story of Co-operation •••-.............................................$ .10<br />
7. British Co-operative Movement ...................................... I . .10<br />
10. A Baker and What He Baked (Belgian Movement) ...................... .05<br />
38. Co-operative Consumers' Movement in the United States. .............. .05<br />
' -<br />
. . .............<br />
39. Conanmers' Co-operative Societies in N. Y. State, {Published by Con<br />
sumers' League) .10<br />
TECHNICAL<br />
4. How to Start and Run a Rochdale Co-operative Society.................. .10<br />
5. System of Store Records and Accounts................................ .50<br />
6. A Model Constitution and By-Laws for a Co-operative Society........... .05<br />
8. Co-operative Education. Duties of Educational Committee Defined..... .10<br />
9.<br />
27.<br />
2.<br />
14.<br />
2.<br />
46.<br />
11.<br />
12.<br />
S4.<br />
43.<br />
How to Start a Co-operative Wholesale................................ .10<br />
Why Co-operative Stores Fail .............. .......................... .02<br />
Co-operative Store Management ...................................... .10<br />
How to Start and Run & Women's Guild................................ .05<br />
How to Organize a District Co-operative League........................ .10<br />
MISCELLANEOUS<br />
Producers' Co-operative Industries ................................... .10<br />
Control of Industry by the People Through the Co-operative Movement... .10<br />
Credit Union and Co-operative Store.................................. .05<br />
Co-operative Movement (Yiddish) .................................... .02<br />
Co-operative Housing ................................................. .10<br />
Per 100<br />
$6.00<br />
6.00<br />
ONE-PAGE LEAFLETS<br />
(One cent each; 50 cents per 100; $2.50 per 500; $4 per 1,000)<br />
(1) Principles and Aims of the Co-operative League of America; (17) Do You Know Why You<br />
Should Be a Co-operator; (20) Why Loyalty Is Necessary; (21) Cost and Crime of<br />
Credit; (22) A Real Co-operator; (25) Resolutions Adopted by A. F. of L.; (26) Factory<br />
Workers, Co-operate!; (28) Do You Know About Co-operation in Europe?; (40) Have<br />
You a Committee on Education and Recreation?; (44) What Is the Co-operative<br />
Movement 1? (45) Schools and Stores; (47) A Man's Right to a Job; (48) Tips to<br />
Co-operators; (49) Think It Over.<br />
MONTHLY PUBLICATIONS<br />
<strong>CO</strong>-<strong>OPERATION</strong> — (In bundle lots, $7.50 per hundred). Subscription, per year. ........ .$1 00<br />
HOME <strong>CO</strong>-OPERATOR, 4 pages ................................................ $1 per 100<br />
INTERNATIONAL <strong>CO</strong>-OPERATIVE BULLETIN (Pub. by The I. C. A.). . . . . . .per year, $1.50<br />
BOOKS<br />
The following books are recommended as containing the best discussions of the modern<br />
Co-operative Movement. They may be ordered through The League:<br />
Bubnoff, J. B.: The Co-operative Movement in Russia, 1917. ......................... .$1.25<br />
Faber, Harald: Co-operation in Danish Agriculture, 1918. ............................. 2.75<br />
Flanagan, J. A.: Wholesale Co-operation in Scotland, 1920. ........................... 2.00<br />
Gebhard, Hannes : Co-operation in Finland, 1916. ..................................... 2.00<br />
Gide, C.: Consumers' Co-operative Societies, 1921 ...................................... 2.50<br />
Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, $2.00; paper<br />
bound ........................................................................... .60<br />
Howe, Fred C.: Denmark, a Co-operative Commonwealth, 1921. ......................... 2.50<br />
Maxwell, Wm.: History of Co-operation in Scotland, 1910. ............................. 2.00<br />
Nicholson, Isa: Our Story ............................................................ .25<br />
Powell, G. Harold: Co-operation in Agriculture. Macmillan ....................... ... 1 50<br />
Redfern, Percy: The Story of the C. W. S.. ........................................... 2.00<br />
Smith-Gordon & Staples : Rural Reconstruction in Ireland, 1918 ....................... 2.50<br />
Smith-Gordon : Co-operation in Many Lands, 1920 ...................................... 2.50<br />
Sonnichsen, Albert: Consumers' Co-operation, 1919. Cloth bound, $1.75; paper bound... .75<br />
Stolinsky, A. : The Co-operative Movement. In Yiddish ................................ 1.00<br />
Webb, B. and S.: The Consumers' Co-operative Movement, 1921. . ...................... 5.00<br />
Webb, Catherine : Industrial Co-operation, 1917 ...................................... 1.50<br />
Woolf, Leonard: Co-operation and the Future of Industry. ............................ 2.00<br />
Woolf, L.: Socialism and Co-operation ................................. .............. 2.00<br />
"The Co-operative Consumer" and "Co-operation," III (1917), VI (1920), VII (1921).... 1.25<br />
Transactions of Second American Co-operative Convention, 1920. ......'................ 1 00<br />
The People's Year Book, <strong>1922</strong>. ..................................................... .75<br />
(Ten cents postage should be added for books which cost more than $2.00, and five cents<br />
for the smaller books.)<br />
4.00<br />
4.00<br />
2.50<br />
1.00<br />
1.76<br />
1.25
THE <strong>CO</strong>-OPERATIVE LEAGUE<br />
(Member of The International Co-operative Allinace)<br />
167 West 12th Street, New York<br />
An educational organization for teaching the history, principles, methods and aims of the<br />
Co-operative Movement and for the promotion of Co-operation In the United States.<br />
Join The League and thus help promote the educational work of the Co-operative<br />
Movement. Individual Membership, $1.00 a year. Subscribe for <strong>CO</strong>-<strong>OPERATION</strong>,<br />
the Monthly Magazine of The League, and keep in touch with the Movement.<br />
Subscription for <strong>CO</strong>-<strong>OPERATION</strong>, $1.00.<br />
Enclosed find $.<br />
Membership in The LEAGUE, $1.00.<br />
Name...<br />
Address.<br />
Date. ...<br />
Co-operative Central Exchange<br />
Wholesale Grocers and Jobbers,<br />
Bakers<br />
We supply Boods to Co-operative Societies ONMf<br />
We are owned and controlled by Co-operative<br />
Societies.<br />
We ore organized to enable Co-operative Societtes<br />
to do collectively what they cannot do indi<br />
vidually.<br />
Co-operative Central Exchange<br />
Offices, Warehouses and Plant:<br />
Winter Street and Ogden Are.,<br />
SUPERIOR, WIS.<br />
Co-operators' 1M. Mutual Fire Insurance Co.<br />
Is now writing Insurance In State of Wisconsin.<br />
The Canadian Co-operator<br />
Brantford, Ontario,<br />
Canada<br />
The organ of the Canadian Co-opera-<br />
tlve Movement, owned by and con<br />
ducted nnder the auspices of The<br />
Co-operative Union of Canada.<br />
Published monthly;<br />
75c per annum<br />
MOVING PICTURES<br />
and<br />
Stereopticon Lectures<br />
may be rented from<br />
<strong>CO</strong>-OPKBATTVB LEAGUE OF AMERICA<br />
167 West 12th St., New York City<br />
1. "SoiLe Examples of English Co-operation."<br />
Moving pictures of factory processes (two<br />
reels) ...............................-S5.00<br />
2. "Co-operation In the United States."<br />
With 63 Stereopticon vlewe ............53.00<br />
3. "The Co-operative Movement In Bnsssia."<br />
With 36 colored Stereopticon views.. ..$3.00<br />
Co-operation in Scotland<br />
In no part of the world Is Co-operation further<br />
developed, or more successfully practised than in<br />
Scotland. If you wish to keep in touch, read<br />
"The Scottish Co-operator"<br />
(Published Weekly)<br />
Subscription: Year 12 sh.; half-year. 6 sh.<br />
Address, 119 Paisley Road,<br />
Glasgow, Scotland<br />
THE PRODUCER<br />
Issued Monthly Price 3d.<br />
If you want to keep in touch with<br />
business, organization, administra<br />
tive affairs, and problems of the<br />
British Co-operative Movement,<br />
read THE PRODUCER.<br />
Published by<br />
Co-operative Wholesale Society, Inc.<br />
I Balloon Street, Manchester.<br />
Post free 4 sh. 6d. a year.<br />
The Trade and Technical Organ of British<br />
Co-operation.<br />
THE HOME <strong>CO</strong>-OPERATOR<br />
A four-page magazine for<br />
use in co-operative societies.<br />
Issued monthly, in bundles, $1 per hundred.<br />
Published by<br />
The Co-operative League<br />
Publishing Office, Willimantic, Conn. Al<br />
bert Sonnichsen, Managing Eitor.<br />
I<br />
A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in vol<br />
untary association, produce and distribute for their own use the things they need<br />
Published monthly by The Co-operative League, 167 West Twelfth Street, 'New York City,<br />
J. P. Warbasse, Editor. Price, $1.00 a year. Entered as second class matter, December 19,<br />
1917, at the Post Office at New York, N. Y., under the Act of March 3, 1879.<br />
Vol. <strong>VIII</strong>, No. 7 JULY, <strong>1922</strong> 10 Cents<br />
VITAL ISSUES<br />
THE THIRD <strong>CO</strong>-OPERATIVE<br />
<strong>CO</strong>NGRESS<br />
The Third Congress of The 69-<br />
operative League will be held in<br />
Chicago October 26, 27 and 28,<br />
<strong>1922</strong>. The First Congress was in<br />
Springfield, 111., in 1918; the second<br />
was in Cincinnati, Ohio, in 1920.<br />
This Third Congress will differ from<br />
the others in that it will be a repre<br />
sentative congress of the newly-<br />
constituted League. The other con<br />
gresses accepted delegates from all<br />
true co-operative societies. At this<br />
Third Congress only delegates from<br />
societies which are members of The<br />
Co-operative League will have the<br />
right to vote. The call to the Con<br />
gress is printed on another page of<br />
this magazine.<br />
The time has come when the na<br />
tional union of co-operative societies<br />
must take its place as the authorita<br />
tive body in the United States. The<br />
test of a true co-operative society<br />
should be its membership in The<br />
League. There must be some means<br />
to distinguish true societies from<br />
the false. The former should be<br />
members of The League; the latter<br />
cannot be.<br />
The League is the only organiza<br />
tion in the United States which is a<br />
member of the International Co<br />
operative Alliance. It is recognized<br />
by the Alliance as the union of con<br />
sumers' societies of this country. It<br />
is through The League only that<br />
societies in the United States can<br />
become a part of the great world<br />
Movement. The League is now tak<br />
ing the position which the similar<br />
national unions in the other coun<br />
tries take. Its congresses hereafter<br />
will be congresses of its constituent<br />
societies. All true co-operative con<br />
sumers' societies in the United States<br />
are eligible to membership in The<br />
League. For over six years now<br />
they have been receiving the invita<br />
tion to join it. If they remain longer<br />
outside of the national family of<br />
societies they may suffer the suspi<br />
cion that they are not eligible to<br />
membership.<br />
The Third Congress should be an<br />
occasion of great importance to the<br />
Movement in this country. It should<br />
be of historic significance, for it is<br />
another step forward in the develop<br />
ment of an organization of the peo<br />
ple which, before many more years<br />
have passed, will become the hope<br />
of a disordered society.<br />
THE DIFFERENCE BETWEEN <strong>CO</strong><br />
<strong>OPERATION</strong> AND "BUSINESS"<br />
While politicians and business<br />
men are running the world into a<br />
hole, there remains one method that<br />
can save it. That is the method of<br />
production and distribution for use<br />
instead of for profit. And that can be<br />
attained by the application in the
110 <strong>CO</strong>-<strong>OPERATION</strong><br />
economic life of the three funda<br />
mental principles of Co-operation.<br />
Some day our professors of eco<br />
nomics will wake up to the signifi<br />
cance of these principles.<br />
The first is: One member, one<br />
vote. It means that human beings<br />
vote. In the prevalent profit cor<br />
poration each share of stock votes.<br />
That means that money rules. The<br />
god of dollars sits on the throne of<br />
profit business—civilization cannot<br />
exist in a monarchy of money.<br />
The second principle is: Surplus-<br />
savings ("profits"), the difference<br />
between net cost and selling price,<br />
shall be used for the common good<br />
or shall be returned to members in<br />
proportion to their patronage. The<br />
ordinary profit-making corporation<br />
returns this money to the stockhold<br />
ers in proportion to the amount of<br />
stock which each owns, after paying<br />
big salaries to the officials who ma<br />
nipulate the business. The co-oper<br />
ative society in not giving it to stock<br />
holders in proportion to their stock<br />
holdings, but to patrons in propor<br />
tion to their patronage, thus has no<br />
profit.<br />
The member of the co-operative<br />
society puts in some original capital<br />
to buy a supply of goods. He goes<br />
to the store and gets goods for<br />
which he has already invested. In<br />
order that the society may have cap<br />
ital to replenish the supply, every<br />
time he takes goods away he de<br />
posits with the society money<br />
enough to purchase that amount of<br />
goods again, and in addition he de<br />
posits enough more to make up a<br />
sum equal to the prevalent retail<br />
price. These deposits accumulate<br />
in the treasury. Goods are replen<br />
ished. At the end of the quarter<br />
the deposits are returned to the<br />
members less the amount necessary<br />
to pay for the goods the member has<br />
taken and for the overhead costs. It<br />
is a mutual banking, joint buying<br />
and distributing business, but not a<br />
profit business. There are savings,<br />
but not profits. Profits are made<br />
only where sales are made to non-<br />
members. For convenience, the<br />
lingo of profit business is used and<br />
sales are spoken of. Properly speak<br />
ing, the co-operative society makes<br />
purchases for its members who con<br />
sume the commodities purchased;<br />
but the society does not sell to its<br />
members. It distributes to and for<br />
them.<br />
The third principle is: If interest<br />
on capital is paid, it shall be prede<br />
termined and fixed at the minimum<br />
current interest rate. This means<br />
that, no matter how large the sur<br />
plus-savings (or "profits") may be,<br />
invested capital has no claim upon<br />
them excepting to receive its fixed<br />
interest rate. What remains, after<br />
paying this interest, is used as de<br />
scribed above under the second<br />
principle. This again limits the re<br />
wards which capital receives to the<br />
simple wages of capital. In Co-op<br />
eration capital is paid as a servant;<br />
in profit-business capital rules, and<br />
gets all.<br />
In the course of time, when com<br />
petition with profit-business shall be<br />
no longer a pressing problem, the<br />
last of these methods will be abol<br />
ished and the second will be re<br />
duced to a vanishing point. Today<br />
interest must be paid because the<br />
consumer can get interest on his<br />
capital in the profit-making bank.<br />
Co-operation should not deprive him<br />
of this. When profit-making is no<br />
longer the dominant business sys<br />
tem, the costs of goods will be lower<br />
and the need to pay a current retail<br />
market price will no longer exist.<br />
In other words, prices to the con<br />
sumer will be cost prices, plus a<br />
small amount for social purposes<br />
and administration.<br />
It is important to keep these three<br />
principles before the people. They<br />
must be adopted sooner or later. The<br />
more people who know about them<br />
the sooner the world can be gotten<br />
out of the hole into which the profit-<br />
system of business is rushing it.<br />
DESPITE MISTAKES<br />
Abraham Lincoln said, "God must<br />
have loved the common people, He<br />
made so many of them." Their power<br />
to survive and perpetuate themselves<br />
has been very great. What they have<br />
suffered and come through is graphi<br />
cally described in the series of books<br />
by Eugene Sue, entitled "The History<br />
of a Proletarian Family." Still here<br />
they are, these common people, strug<br />
gling along to find a way up and out<br />
toward the light.<br />
Now we see them attempting to<br />
solve their problems by means of<br />
Co-operation. There seems to be<br />
something about this Movement that<br />
fits it to the common people. Despite<br />
every sort of obstacle and every sort<br />
of mistake, it goes on succeeding and<br />
moving toward the light. There seems<br />
to be some sort of natural protection<br />
always saving it, always casting about<br />
it a spell of life.<br />
As one studies the histories of the<br />
British societies that date back more<br />
than half a century, he finds the hor<br />
rible trials through which they have<br />
survived. The substantial society in<br />
many an English town succeeded<br />
after many others had failed. The<br />
incompetent manager, the dishonest<br />
treasurer, the indifferent and disloyal<br />
members, the ignorant and stupid di<br />
rectors and the scheming, profit-<br />
business men of the town, all made<br />
success difficult. But often after re<br />
peated failures, after being knocked<br />
down and battered and bruised, Co<br />
operation has gotten up and made<br />
good. There is no business mistake<br />
in the whole catalog of human errors<br />
that co-operative societies have not<br />
seized upon and cherished as though<br />
it were a virtue. They have fumbled<br />
and groped, and gone on. Co-opera<br />
tion has succeeded in spite of every<br />
kind of stupidity.<br />
And yet the failures of co-operative<br />
societies are not so numerous as those<br />
in profit-business. These plain work<br />
ing people, unschooled in the affairs<br />
of business, have been seen less often<br />
in the courts of bankruptcy than the<br />
<strong>CO</strong>-<strong>OPERATION</strong> 111<br />
educated and once rich men from the<br />
world of business. There is an eter<br />
nal principle in Co-operation that<br />
makes for success.<br />
Now the time has come when ex<br />
perimenting is no longer necessary.<br />
The test by trial and error need not<br />
be applied. In almost every country<br />
of the world there is a national educa<br />
tional organization which stands<br />
ready with information on all prob<br />
lems of Co-operation. Standardized<br />
advice and guidance are available.<br />
The day has passed when working<br />
people must make the long journey<br />
afoot to Rochdale. Rochdale and the<br />
lessons of a thousand failures and<br />
ten thousand successes are now with<br />
in the easy reach of all. The great<br />
and inexcusable mistake now is to<br />
make any mistakes at all.<br />
THE HONEST MANAGER<br />
Once upon a time an honest man<br />
appeared at the gates of heaven and<br />
asked admittance. Peter opened the<br />
door, looked him over, heard his plea<br />
and asked him his name and address.<br />
Peter then disappeared to look him<br />
up in the heavenly address book.<br />
After a long time Peter returned,<br />
shrugged his shoulders and informed<br />
the man that no such name was to<br />
be found. But as the man, standing<br />
before the door of heaven, looked so<br />
honest, Peter asked him what had<br />
been his occupation on earth. There<br />
upon the man replied that he was the<br />
manager of a co-operative society.<br />
The earnest features of Peter sudden<br />
ly became illuminated. "By the Arch<br />
angel Gabriel," Peter exclaimed,<br />
"that explains it; I looked in the<br />
wrong place; the co-operative society<br />
managers are in the Book of Mar<br />
tyrs!"<br />
The manager who is faithful to the<br />
ideals of Co-operation must be long-<br />
suffering and patient. But in the<br />
end his reward should be the satis<br />
faction of seeing a successful society.<br />
And no single individual can contrib<br />
ute more to that success than he.
112 <strong>CO</strong>-<strong>OPERATION</strong><br />
THIRD <strong>CO</strong>-OPERATIVE <strong>CO</strong>NGRESS<br />
The Co-operative League calls upon its constituent societies to send<br />
delegates to the Third Co-operative Congress, to be held at<br />
CHICAGO, ILLINOIS,<br />
OCTOBER 26, 27 and 28, <strong>1922</strong><br />
This Congress is of the utmost importance. Every society which is<br />
a member of The League should make an effort to be represented. Only<br />
delegates of constituent societies may vote.<br />
All consumers' societies — distributive stores, banks, wholesales,<br />
restaurants, laundries, bakeries, housing, recreational, and educational<br />
societies, etc., which are members of The Co-operative League, are en<br />
titled to one voting delegate, and an additional voting delegate for every<br />
500 members above the first 500 or a majority fraction thereof. Dele<br />
gates and alternates should be elected at the earliest possible member<br />
ship or board meeting. Societies are urged to send as many other non-<br />
voting delegates as possible.<br />
All co-operative societies in the United States which are not mem<br />
bers of The League are entitled to be represented by fraternal delegates,<br />
provided that they comply with the following requirements:<br />
(1) One vote for each member; no proxy voting. (2) If capital is paid interest<br />
it shall be not more than legal current rate. (3) If there is surplus-saving ("profit")<br />
it shall be reserved for expansion, used for the general social good, employed for<br />
the common benefit of the members, or paid back as cash savings-returns ("dividends")<br />
in proportion to patronage or service. (4) Democratic control.<br />
In addition to the above: Producers' copartnership societies and<br />
agricultural marketing and service societies, which comply with the<br />
above requirements, are invited to send fraternal delegates.<br />
Trade unions, educational societies, and other organizations, not<br />
co-operative in form, but favorably interested in the promotion of the<br />
Co-operative Movement, are invited to send fraternal delegates.<br />
The courtesy of discussion may be extended to Fraternal Delegates.<br />
Members of co-operative societies, trade unionists and individuals<br />
who are interested in the promotion of the Co-operative Movement are<br />
invited to attend the Congress.<br />
Among the subjects which will be presented and discussed are<br />
the following: District Wholesales; Model Co-operative Laws; Ac<br />
counting; Banking; How to Meet Chain Store Competition; How to<br />
Avoid Credit Trading; How to Promote Education; Co-operation and<br />
the Labor Movement; the Problem of Income Tax; Store Managers'<br />
Problems; Laundries; Restaurants; Housing, etc.<br />
The names and addresses of Delegates, Fraternal Delegates and<br />
alternates should be sent to the Executive Board of The League before<br />
the first of October.<br />
The place of meeting will be published in the magazine<br />
<strong>CO</strong>-<strong>OPERATION</strong>, and the information will be sent to Delegates upon the<br />
receipt of their names and addresses.<br />
THE <strong>CO</strong>-OPERATIVE LEAGUE,<br />
THE BOARD OF DIRECTORS.<br />
J. P. Warbasse, President.<br />
John F. McNamee, Secretary.<br />
<strong>CO</strong>-<strong>OPERATION</strong> 113<br />
SEEN HERE AND THERE<br />
PLYMOUTH SOCIETY HAS BAD AND GOOD FORTUNE<br />
The Plymouth Co-operative Soci<br />
ety, like most British societies, had<br />
its ups and downs. It was started by<br />
eighteen people who used to meet in<br />
Charles Godanew's shoemaker's shop<br />
and read aloud Holyoake's "History<br />
of the Rochdale Pioneers." They got<br />
so much enthusiasm that they had a<br />
meeting of organization and raised<br />
among themselves $4.50. When this<br />
sum had been increased to $15 they<br />
rented a room for thirty cents a week,<br />
borrowed a pair of scales, purchased<br />
$12.50 worth of goods and started<br />
business. That was in 1860.<br />
And they have kept .hammering<br />
away ever since. But they had trou<br />
bles, and just the kind of troubles<br />
that send many an American society<br />
to smash.<br />
The sixth year of the society was<br />
especially troublesome. There were<br />
many discouragements. "Then the<br />
cash box disappeared and there was<br />
suspicion, discharge and subsequent<br />
court proceedings, the whole lasting<br />
nearly a half year. For that period<br />
there was no dividend paid, neither<br />
could interest be paid on share capital<br />
and in addition the little reserve<br />
fund which had been accumulated<br />
was absorbed. By the end of the<br />
year confidence was not yet restored<br />
for the year following showed re<br />
duced membership and smaller<br />
trade." Thus the records say.<br />
At the end of forty years, however,<br />
their membership had reached 25,000.<br />
They owned Several blocks fof the<br />
best buildings in the city, together<br />
with their own farms in the suburbs.<br />
Then private profit-business decided<br />
to make a final effort to destroy the<br />
Society. The private traders saw<br />
their occupation going and entered<br />
upon a campaign of slanderous pub<br />
lications concerning the Society.<br />
They even held an anti-co-operative<br />
demonstration in the Guildhall. The<br />
Educational Committee of the society<br />
took up the challenge and so effect<br />
By J. P. W.<br />
ively posted and pamphleted the town<br />
with facts and figures relating to the<br />
society as to bring 550 new members<br />
into it in one month. Not yet con<br />
tent, the Traders' Defense Associa<br />
tion of Plymouth published in the<br />
Traders' Journal scurrilous and un<br />
true statements about the Society.<br />
The authors were promptly prose<br />
cuted in the courts for libel with a<br />
victorious result for the society.<br />
Things went along .smoothly until<br />
the war. The society bought a vessel<br />
for $130,000 to carry its coal from<br />
Blyth to Plymouth. Soon, however,<br />
the British Admiralty discovered the<br />
vessel and the Government took it<br />
over to carry supplies to the North<br />
Sea. One stormy morning she struck<br />
a mine and was sunk. Because of the<br />
splendid arrangements ship owners<br />
had effected with the Government for<br />
vessels taken over, the society came<br />
in as a ship owner and was awarded<br />
$230,000 for the boat—a clear profit<br />
of $100,000—thanks to the profiteers<br />
who were running the war.<br />
The Society continued to prosper.<br />
It now has 67,000 members. The<br />
share capital amounts to $5,000,000<br />
and the loan capital to $250,000. The<br />
annual sales are $12,000,000. The<br />
annual surplus-savings ("profits")<br />
are $1,400,000. Its farms and fac<br />
tories produce $2,400,000 worth of<br />
goods yearly.<br />
It has 37 grocery stores, 25 meat<br />
stores, 20 dairy products stores, 12<br />
bakery and confectionary stores, 7<br />
shoe stores, 23 green grocery stores,<br />
and .several stores for house furnish<br />
ings, dry goods, clothing, china and<br />
glassware. It has coal and wood<br />
yards, fish stores, laundries, boot re<br />
pairing shops, carpet cleaning and<br />
dyeing works, leather and saddlery<br />
goods, window cleaning business, to<br />
bacco stores and drug .stores. It has<br />
a slaughter-house, a sausage factory,<br />
a milk pasteurizing plant, a jam fac<br />
tory, a bakery, 8 shoe-making shops,
114 <strong>CO</strong>-<strong>OPERATION</strong><br />
a furniture factory, a clothing fac<br />
tory and 9 farms of a total of 3,000<br />
acres. It distributes over 50,000 tons<br />
of coal a year among its members, in<br />
which service it uses its own three-<br />
masted schooner, motor barges and<br />
railroad coal cars.<br />
The society has 2,500 employees.<br />
It owns 215 horses, 140 vans, 7 steam<br />
wagons, 35 motor trucks, 100 railroad<br />
cars, 17 sight-seeing automobile om<br />
nibuses, 7 touring cars, 9 milk trucks,<br />
113 milk wagons. On its farms it<br />
has 215 milk cows, 336 bullocks, 850<br />
sheep, 1,200 head of poultry and 264<br />
pigs. Its daily milk output is 4,000<br />
gallons and it uses 1,000 sacks of<br />
flour weekly. Its beautiful "holiday<br />
house" in the country is in constant<br />
use. It makes an appropriation of<br />
$15,000 a year for the use of its Edu<br />
cational Committee, which conducts<br />
classes, lectures and many other edu<br />
cational activities. The society's<br />
library contains over 12,000 volumes.<br />
The members borrow 2,500 books<br />
weekly. A monthly magazine is pub<br />
lished. Five district branches of the<br />
Women's Guild each hold weekly<br />
meetings.<br />
What this Society has done for the<br />
people of Plymouth is beyond calcula<br />
tion. Since it was started, it has dis<br />
tributed to its members $115,000,000<br />
worth of goods, in which they have<br />
been guaranteed freedom from adul<br />
teration and every form of cheating.<br />
In doing this it has made a surplus-<br />
saving for these people of $17,000,-<br />
000. Plymouth has many poor fami<br />
lies that have been put on a self-<br />
supporting and .self-respecting basis<br />
through this society. Its educational<br />
influence has permeated every home<br />
in the city.<br />
But above all, its important service<br />
has been in training simple people to<br />
administer industry. This is the con<br />
tribution made by co-operative soci<br />
eties which will have a profound<br />
significance in the reorganization of<br />
the world.<br />
THE <strong>CO</strong>-OPERATIVE MOVEMENT IN<br />
MILWAUKEE<br />
The first co-operative venture to<br />
succeed here was a savings bank.<br />
In 1912 twenty-five Co-operators, of<br />
whom I had the honor of being one,<br />
signed an application for a charter<br />
from the State of Wisconsin. The<br />
feature of our charter is that each<br />
member has one vote, the law re<br />
quires the sale of no stock, and all<br />
of the profits of the enterprise go in<br />
interest and dividends to those who<br />
deposit their funds in the bank.<br />
The charter being granted, a lit<br />
tle room was rented in the down<br />
town district on the second floor of<br />
an old structure which looked more<br />
like the office of a country doctor<br />
than of a bank. Neverthelss, the<br />
workers began to place their sav<br />
ings in this bank. To keep down<br />
expenses, the President, Mr. Charles<br />
By DANIEL W. HOAN<br />
Mayor of Milwaukee<br />
Whitnall, donated his .services to the<br />
institution for several years. The<br />
money taken in was securely invest<br />
ed, principally to interested persons<br />
desiring to build homes, while the<br />
surplus was invested in municipal<br />
bonds. In this way the entire sav<br />
ings of the institution were used to<br />
encourage municipal enterprise and<br />
home building. The deposits of this<br />
little institution have grown with<br />
each year until today they are<br />
$600,000. With this growing ac<br />
tivity, a splendid new location was<br />
rented on the first floor of one of the<br />
principal streets in the city. The<br />
bank bears the title, "Common<br />
wealth Mutual Savings Bank." It<br />
has never charged to exceed 5 per<br />
cent on any of the loans which it has<br />
made to help struggling workers,<br />
nor has it ever charged more than<br />
a nominal fee to cover the expense<br />
of making the loan. In spite of this,<br />
the bank has been able to pay to its<br />
depositors during the greater part<br />
of its existence a larger rate of in<br />
terest than any other savings bank<br />
in the city. It is now regularly pay<br />
ing 2>Vz Per cent, which is ^ per<br />
cent higher than other banks are<br />
paying to depositors; and during the<br />
last year was able to declare an<br />
extra dividend to these users of the<br />
bank.<br />
We are very proud of this enter<br />
prise in Milwaukee and its increas<br />
ing usefulness. We trust in the near<br />
future that the Board of Directors<br />
will add a cheeking account feature<br />
and otherwise enlarge its activities.<br />
The next co-operative venture to<br />
succeed was the Milwaukee Con<br />
sumers' Co-operative Association.<br />
Out of the experience of the Wom<br />
en's Auxiliary of the Railway Broth<br />
erhoods in securing orders and sell<br />
ing carloads of canned goods to the<br />
railroad men, the sentiment was cre<br />
ated for a real co-operative enter<br />
prise to take care of this work.<br />
In the fall of 1920 the interested<br />
workers met and applied for a char<br />
ter. I had the good fortune to be<br />
elected to the board of directors at<br />
the first meeting. When the sum of<br />
$16,000 had been paid in in Febru<br />
ary, 1921, we purchased our first<br />
store. The business and member<br />
ship grew so rapidly that we were<br />
able to establish three more retail<br />
stores before the expiration of one<br />
year. By January 1, <strong>1922</strong>, these<br />
stores had done a business in the<br />
eleven months of their existence of<br />
$156,000 and were able to declare<br />
a savings-return payable on July 1<br />
of this year of 3 per cent. The<br />
membership is now over 1,300, and<br />
the business is increasing with satis<br />
factory strides. A splendid system<br />
of accounting has been inaugurated<br />
at the beginning of this year, which<br />
gives the directors a monthly state<br />
ment of the receipts and disburse<br />
ments of each store. When supple<br />
mented by regular inventories we<br />
<strong>CO</strong>-<strong>OPERATION</strong> 115<br />
have a complete check which in<br />
sures the success of this institution.<br />
We are already able to buy some of<br />
our articles in carload lots, and we<br />
are making a drive to increase our<br />
capital to make as many purchases<br />
as possible along this line. During<br />
the first year we were able to sell<br />
our goods as low and lower than<br />
most of the stores in the City of Mil<br />
waukee.<br />
At regular intervals we have held<br />
dances and picnics, at which times<br />
the message of Co-operation was<br />
brought home to the enthusiastic<br />
stockholders.<br />
In October, 1920, while the cigar-<br />
makers were on strike, a cigar man<br />
ufacturing business was organized.<br />
The stock was entirely subscribed<br />
for by the men and women on strike,<br />
one-third of the subscribers being<br />
women. Its membership has in<br />
creased until now there are 164<br />
members. The business was started<br />
at once and at the expiration of the<br />
first year over 300,000 cigars were<br />
manufactured and sold. These ci<br />
gars are made by union workers,<br />
who draw the union scale of wages.<br />
While this enterprise was launched<br />
during the financial depression, it is<br />
on a growing and sound financial<br />
basis.<br />
In February, 1921, during the<br />
general lockout of tailors, forty or<br />
more of the strikers decided to in<br />
vest their savings in a tailoring en<br />
terprise. This business was started<br />
and conducted during the worst<br />
of the depression; nevertheless,<br />
through the efforts of its members,<br />
the enterprise is 100 per cent intact;<br />
its membership has been increased,<br />
and its business is growing.<br />
Last, but not least, there has been<br />
launched in Milwaukee one of the<br />
most interesting Co-operatives of<br />
the United States, namely: home<br />
building for working men.<br />
During the war I had the pleasure<br />
of naming a committee fairly repre<br />
sentative of all the elements of the1<br />
community, to answer two questions.<br />
First—Is there a housing shortage<br />
in the City of Milwaukee?
116 <strong>CO</strong>-<strong>OPERATION</strong><br />
Second—If so, what, if anything,<br />
shall be done by the municipality?<br />
The Commission reported that<br />
there was a serious housing problem<br />
and that a special co-operative law<br />
should be adopted by the legislature<br />
to permit the incorporation of the<br />
Co-operative Housing Company.<br />
This was done and the enterprise<br />
launched. The company is a Roch<br />
dale co-operative in every feature<br />
except two.<br />
First—Like some English co-oper<br />
atives, the city and county can sub<br />
scribe to the capital stock.<br />
Second—Instead of having one<br />
vote for each stockholder, votes are<br />
allowed in proportion to the number<br />
of shares. This departure was ne<br />
cessitated, since at that time it was<br />
not believed that the $250,000 re<br />
quired could be secured without it.<br />
An appeal to the business men to<br />
purchase the stock would have to be<br />
made, and it was thought impossible<br />
to sell them a 100 per cent Rochdale<br />
plan of house building. However,<br />
this one deviation can be remedied<br />
later on when the investing business<br />
men are gradually paid off by the<br />
occupants of the homes. The com<br />
pany was organized for $500,000.<br />
Half of this was preferred stock,<br />
guaranteeing a return of 5 per cent.<br />
This was the stock that was sold.<br />
The city and county each took $50,-<br />
000; and the remainder was sold to<br />
business men. Twenty-eight acres<br />
were then acquired in a beautiful<br />
location within a block of street car<br />
service. The land was platted with<br />
out charge by the very best city<br />
planning experts. These lots are<br />
40x100 feet, affording ample sun<br />
light and air as well as space for a<br />
garden. In the center of the plot a<br />
playground 204x466 feet is pro<br />
vided, which will furnish play space<br />
for the children. Twenty-five houses<br />
are now under roof; six others will<br />
be under roof in two weeks.<br />
Plans are being carried out to put<br />
on a drive to supply the necessary<br />
funds to build at least one house a<br />
day during the present summer and<br />
fall. We have sufficient information<br />
from the cost sheet already worked<br />
out to state that these homes will be<br />
turned over to the occupants for<br />
from $1,000 to $1,500 less than they<br />
could be secured under the old plan.<br />
This is possible—<br />
First—Because of the donation of<br />
many services.<br />
Second—The elimination of real<br />
estate men, contractors and other<br />
useless extravagance.<br />
Third—In the purchase of the<br />
material for the houses at wholesale.<br />
The union scale and hours of em<br />
ployment have prevailed through<br />
out. There has been a remarkable<br />
demonstration of the efficiency of<br />
the organized crafts here.<br />
The occupant of a home does not<br />
obtain a deed. He subscribes for<br />
common stock equivalent to the<br />
value of the cost of his home and lot,<br />
which will be around $4,000 for a<br />
6-room house. They will pay down<br />
10 per cent of the cost of their stock,<br />
which money will be used to retire<br />
or pay off that much of the pre<br />
ferred stock. On the unpaid bal<br />
ance they will pay interest. All<br />
other expenses, like taxes, water, re<br />
pairs, etc., will be paid to the co<br />
operative company in monthly in<br />
stallments. While figures are not<br />
yet available, I predict that the ren<br />
tals ordinarily paid by workmen for<br />
similar houses will not only pay all<br />
the expenses of the houses, but will<br />
pay for the stock. The payments<br />
will cover both fire and life insur<br />
ance so that in the event of disaster<br />
the members of the family are pro<br />
tected. While the occupant does not<br />
secure a deed, he is given a contract<br />
which is much more than a lease.<br />
It will guarantee to him permanent<br />
tenure to himself and heirs while he<br />
obeys the rules of the co-operative<br />
company.<br />
Another advantage of this method<br />
of home owning for the workers is<br />
that in case of severe illness or ne<br />
cessity of leaving the city, the com<br />
pany agrees to purchase back the<br />
occupant's paid-up stock at the par<br />
value.<br />
I<br />
As rapidly as the occupants of the<br />
homes pay for their common stock<br />
the preferred stockholders will be<br />
paid off and the occupants will be<br />
come the sole managers of the enter<br />
prise. Its popularity is assured by<br />
the fact that there are already more<br />
than 900 applicants for the seventy-<br />
five or more houses, finances for<br />
which are assured.<br />
We have no hesitation in saying<br />
<strong>CO</strong>-<strong>OPERATION</strong> 117<br />
that the co-operative offers the best<br />
solution of the housing problem<br />
which has yet been devised. Even<br />
the socialists of Europe have aban<br />
doned their position for municipal<br />
houses in favor of the co-operative<br />
idea.<br />
In closing, let me say again that<br />
Co-operation has taken a firm hold<br />
in the City of Milwaukee.<br />
VACATIONS FOR <strong>CO</strong>-OPERATORS<br />
In the dog days of summer one's<br />
thoughts naturally turn to the sub<br />
ject of vacations. While only a hand<br />
ful of co-operatives in this country<br />
have considered establishing vacation<br />
camps for their members, it is a com<br />
mon practice abroad to provide such<br />
facilities. For example, the Union<br />
Des Cooperateurs of Paris, the Fed<br />
eration of all co-operatives in Paris,<br />
has established five vacation colonies<br />
for the exclusive use of its members<br />
and the members of societies affiliated<br />
with the National Federation of Con<br />
sumers' Co-operative Societies. Four<br />
of these summer camps are on the<br />
seacoast and one is in the mountains.<br />
Co-operators who present a certificate<br />
from their society, certifying that<br />
they are members, are entitled, at a<br />
moderate rate, to avail themselves of<br />
the co-operative camps. There is no<br />
charge for children under three years<br />
of age; children from 3 to 9 years of<br />
age are charged half-rates.<br />
At Limoges and at Nancy, the local<br />
co-operative societies in conjunction<br />
with their municipalities, have estab<br />
lished a colony where several hundred<br />
children may spend their vacations.<br />
The Federation in Paris is considering<br />
the establishment of summer camps<br />
for the children of their members.<br />
They state that they are "preparing<br />
for the day when there will no longer<br />
be a single child playing on the un-<br />
healthf ul and hot streets of Paris dur<br />
ing vacation time." It is proposed to<br />
have the Committee on Education of<br />
the Parisian co-operatives issue sav<br />
ings-stamps which would assist Co-<br />
operators to save for vacations for<br />
their children.<br />
In England, the Co-operative Union<br />
has arranged a holiday tour for adult<br />
Co-operators. The party will visit<br />
some of the most beautiful touring<br />
centers of Scotland. For the junior<br />
Co-operators, .summer schools will be<br />
conducted at vacation camps owned<br />
by the Royal Arsenal Co-operative So<br />
ciety of Woolwich and the Nelson Co<br />
operative Society. A group of sev<br />
enty-five members of The Woolwich<br />
Society will make a tour of the co<br />
operative societies of Germany under<br />
one guidance of the German Union.<br />
The summer schools combine pleasure<br />
with education. In addition to co<br />
operative courses suitable for boys<br />
and girls between the ages of 14 to<br />
20, hikes and other outdoor activi<br />
ties are arranged.<br />
All these good tidings offer little<br />
personal consolation to Co-operators<br />
in the United States. But it should<br />
be only a question of a few years be<br />
fore the movement in this country<br />
will be able to make provisions for<br />
the recreation of their members. It<br />
is, after all, up to the co-operators<br />
themselves to support their enter<br />
prises loyally, so that they will be in<br />
a position to branch out into recrea<br />
tive activities.
118 <strong>CO</strong>-<strong>OPERATION</strong> <strong>CO</strong>-<strong>OPERATION</strong> 119<br />
<strong>CO</strong>-OPERATIVE INSURANCE IN NEW YORK<br />
By BORIS FOGELSON<br />
Secretary, Co-operative Fire Insurance Company of Woodridge, New York<br />
Three-quarters of a billion dol<br />
lars' worth of fire insurance is<br />
in force among the co-operative<br />
fire insurance companies in New<br />
York State, according to the ad<br />
vance report for <strong>1922</strong> issued by the<br />
Insurance Department of the State<br />
of New York. A study of the offi<br />
cial figures reveals the fact that co<br />
operative insurance is more wide<br />
spread than the general public im<br />
agines.<br />
In the State of New York alone<br />
there are 166 co-operative fire insur<br />
ance companies of various kinds, in<br />
cluding advance payment, and<br />
county and town assessment com<br />
panies. The combined fire insur<br />
ance in force among all these com<br />
panies at the end of 1921 was $743,-<br />
386,682, a gain for the year of $41,-<br />
673,848 in the amount of insurance<br />
written. The fire losses in New<br />
York covered by co-operative insur<br />
ance during 1921 amounted to $1,-<br />
988,004.19.<br />
The 31 advance premium compa<br />
nies furnished insurance at a cost of<br />
$5.60 per $1,000; the 68 county as<br />
sessment companies at a cost of<br />
$3,70 per $1,000; and the 67 town<br />
assessment companies at a cost of<br />
$2.70 per $1,000, an average cost<br />
of $4.00 per $1,000 of insurance.<br />
The total income of all the New<br />
York co-operative insurance compa<br />
nies in 1921 was $3,302,358.35. The<br />
assets of these companies in excess<br />
of liabilities during 1921 amounted<br />
to $1,370,610.<br />
The foregoing figures apply only<br />
to the state of New York. The fig<br />
ures for farmers' mutual fire insur<br />
ance all over the country are even<br />
more surprising and encouraging.<br />
The first farmers' mutual fire insur<br />
ance company came into existence<br />
about 1825. By 1850 there were<br />
only about fifty companies in exist<br />
ence. The year 1916, however, saw<br />
1,950 such companies in existence.<br />
The Department of Agriculture is<br />
authority for the statement that on<br />
January 1, 1915, there were 1,947<br />
farmers' mutual fire insurance com<br />
panies, carrying $5,264,119,000 of<br />
insurance. At the end of 1918 there<br />
were 2,000 companies with $6,400,-<br />
000,000 of fire insurance in force.<br />
At the present time there are prob<br />
ably between six and one-half and<br />
seven billions of fire insurance writ<br />
ten by farmers' mutual insurance<br />
companies. These co-operative as<br />
sociations in 1916 carried about<br />
42.5 per cent of all insurable<br />
farm property in the United States.<br />
At the present time about half the<br />
insurable farm property is protected<br />
by the farmers' co-operative insur<br />
ance companies.<br />
The New York co-operative insur<br />
ance societies are federated through<br />
the New York State Central Organ<br />
ization of Co-operative Fire Insur<br />
ance. This organization has been<br />
in existence for forty years. It has<br />
for its objects the fostering and pro<br />
tection of the interests and general<br />
welfare of the co-operative fire in<br />
surance companies, by enabling<br />
them to secure greater conformity<br />
in their business. It also endeav<br />
ors to secure legislation for the<br />
protection of legitimate co-opera<br />
tive insurance societies.<br />
The April number of <strong>CO</strong>-OPER<br />
ATION was in error in stating that<br />
the cost of every hundred dollars'<br />
worth of insurance written by the<br />
Co-operative Fire Insurance Compy-<br />
an of Woodridge, N. Y., was less<br />
than 1 per cent. The correct fig<br />
ures are much higher—$9.06 per<br />
$1,000. The cost varies from $2.60<br />
to $13.00 per $1,000, depending<br />
upon the number of rooms in the<br />
buildings insured. The error in cal<br />
culations was caused by failure to<br />
notice two important little decimals.<br />
Because of the limitations placed<br />
upon co-operative insuranee compa<br />
nies by the law of New York, no<br />
more than $7,000 in insurance may<br />
be written against one risk by a<br />
single company. It was therefore<br />
found necessary by the Co-operators<br />
of Woodridge to organize a subsidi<br />
ary fire insurance company, to write<br />
additional insurance on the proper<br />
ty of the members. The demand<br />
for insurance has been so great that<br />
a third company is now in process<br />
of organization at Woodridge.<br />
The total insurance in force in<br />
both of the co-operative fire insur<br />
ance companies now operating at<br />
Woodridge was $7,251,510 on April<br />
1. This amount covers 2,054 pol<br />
icies.<br />
SPURIOUS <strong>CO</strong>-<strong>OPERATION</strong> IN<br />
SCRANTON<br />
Press reports indicate that one<br />
Ignatz Stapinski is to be tried in<br />
Scranton for selling stock in a "co<br />
operative" association, under the<br />
charge of "obtaining money under<br />
false pretenses." Stapinski's de<br />
fense is that purchasers of the stock<br />
take a chance the same as in any co<br />
operative venture.<br />
The interesting fact is that this<br />
maji sold over $13,000 worth of<br />
stock in a scheme that was in no<br />
sense co-operative. It could not<br />
have succeeded had it ever been<br />
started. Still, working people put<br />
$13,000 into this thing when they<br />
are not willing to properly finance a<br />
really true co-operative society in<br />
Scranton, which is struggling along<br />
for want of adequate funds. Some<br />
day the workers will wake up and<br />
finance co-operative education. Un<br />
til they do they will continue to<br />
poke their money into co-operative<br />
rat holes.<br />
ADVICE TO STORE MANAGERS<br />
Store Policies<br />
"Good service and best quality of<br />
goods" should be your motto. Do<br />
not cut prices, but do not let your<br />
people think the store stands for<br />
high prices. Occasional "specials"<br />
are good to interest non-members<br />
so that you have an opportunity to<br />
get acquainted, and make more<br />
members for the store. The mem<br />
bers should be trained, however, not<br />
to expect "specials." The "tricks of<br />
the trade" whereby private stores<br />
make up on other prices for what<br />
they lose on "specials" should be<br />
shown. Emphasize the fact that the<br />
co-operative store always gives ex<br />
act, honest weight. When compet<br />
itors do not do so, attention may be<br />
called to that fact. Also, attention<br />
may be called to sizes of packages<br />
and cans of competitors which often<br />
deceive the public.<br />
Polite, courteous salesmen mean<br />
much for success. Learn the names<br />
of the customers, and greet them by<br />
name cheerfully. Be especially kind<br />
and careful in serving children.<br />
Never palm off poor stuff on a child.<br />
Let it be known that mothers may<br />
safely send their children to the co<br />
operative store, and do not keep a<br />
child waiting in order to wait upon<br />
an older person.<br />
If goods are not satisfactory, wil<br />
lingly exchange same, or refund the<br />
money. In the case of goods that<br />
cannot be exchanged always so state<br />
when the goods are bought.<br />
Telephone orders should be re<br />
ceived by a person with a pleasant,<br />
courteous manner. This is highly<br />
important. Telephone orders should<br />
be received up to a certain hour for<br />
early delivery. Customers should<br />
understand that late orders cannot<br />
be delivered until afternoon or next<br />
day. If membership is widely scat<br />
tered the districts should be zoned,<br />
and regular hours kept for delivery<br />
in each district. Watch the cost of<br />
delivery. It is often too high for<br />
the amount of business done.<br />
A store policy should be outlined<br />
in regard to routine work, manage<br />
ment, advertising and treatment of<br />
help; and it should be lived up to<br />
by manager and all employees. Em<br />
ployees should not be allowed to<br />
wait upon themselves. Neither
120 <strong>CO</strong>-<strong>OPERATION</strong> <strong>CO</strong>-<strong>OPERATION</strong> 121<br />
should members or directors be al<br />
lowed behind the counter, unless<br />
the manager signifies his need on<br />
rush days. A strict rule should be<br />
made against eating and sampling<br />
goods, and the manager and direct<br />
ors must not set a bad example in<br />
this respect. Employees should be<br />
taken into the confidence of the<br />
manager in many things. A weekly<br />
employees' meeting should be held<br />
to discuss ways of bettering the<br />
store, to learn better methods of<br />
making sales, to discuss store prob<br />
lems, to settle grievances, and to<br />
study Co-operation in order to talk<br />
intelligently to members and cus<br />
tomers.<br />
Selling<br />
Do not lose any time in pushing<br />
goods over the counter. Give peo<br />
ple what they want, but increase<br />
sales by good display and store ad<br />
vertising. Put posters on window<br />
and send out weekly bulletins con<br />
taining store news and co-operative<br />
education. Use "The Home Co-<br />
operator" and insert a price bulletin.<br />
Sell at same price as your com<br />
petitors, but give better service and<br />
quality. Your methods must be as<br />
efficient as theirs. Price-fixing is a<br />
most important factor in successful<br />
store-keeping.<br />
Average sales of chain stores are<br />
about $800 a week per man. Most<br />
of them are on a 9 per cent over<br />
head. Watch the average percent<br />
age of overhead to sales constantly.<br />
If employees are not 100 per cent<br />
useful they should not be retained.<br />
Goods should be sold at the reg<br />
ular prices charged by private<br />
tradesmen. It is fatal to cut prices.<br />
It is a confession of weakness, and<br />
the co-operative store cannot keep<br />
it up as long as the chain store. Be<br />
fore the store starts, the members<br />
should be given education on store<br />
competition and the possibility of<br />
not always meeting the chain store<br />
prices.<br />
Self-service co-operative stores<br />
may be able to compete with the<br />
chain store. It is worth trying. The<br />
chain stores today work their men<br />
very hard. They must keep each<br />
one busy every minute. There are<br />
no slack moments. But in our co<br />
operative stores it is quite different,<br />
and much time is often wasted. This<br />
must be watched.<br />
Chain stores try to get the cus<br />
tomer to buy as much as possible<br />
and to be served too quickly. They<br />
force sales. This should not be done<br />
in a co-operative store. You should<br />
only try to sell what the customer<br />
really needs. The co-operative<br />
manager does not need to be clever,<br />
but he should try to sell all the cus<br />
tomer needs, and keep her from go<br />
ing to any other store. Keep goods<br />
well in sight so the customer will not<br />
forget her wants.<br />
Special Sales<br />
Special sales may be indulged in<br />
if bona-fide. Get rid of slow-mov<br />
ing goods in this way, and advertise<br />
a few specials weekly. Do not<br />
adopt the policy of price-cutting,<br />
but show the value of goods you<br />
want to move. Suggest ways of us<br />
ing certain goods you want to dis<br />
pose of by demonstrations. The<br />
Women's Guild should show cooked<br />
articles in the store and give the<br />
recipes for using such goods.<br />
SUBSCRIPTION <strong>CO</strong>NTEST<br />
The League offers a prize of a<br />
copy of "The Consumers' Co-opera<br />
tive Movement," by Sidney and Be<br />
atrice Webb, to the person who will<br />
send in the most subscriptions to<br />
<strong>CO</strong>-<strong>OPERATION</strong> during the period<br />
July 1 to October 1. The contest<br />
is open to all. Sample copies of the<br />
magazine and subscription blanks<br />
will be sent on request to those de<br />
siring to enter the contest.<br />
<strong>CO</strong>-<strong>OPERATION</strong> is the only<br />
monthly magazine published in this<br />
country devoted to the Consumers'<br />
Co-operative Movement. It has no<br />
rivals, and it should not be a diffi<br />
cult matter to interest labor and<br />
farmer groups in the only magazine<br />
which serves their interests as con<br />
sumers. Co-operative societies, as<br />
well as individuals, are eligible to<br />
enter the contest.<br />
<strong>CO</strong>-OPERATIVE <strong>CO</strong>URSE<br />
On June 2 the course of ten lec<br />
tures on the Co-operative Move<br />
ment, given by members of The<br />
League staff, came to an end. This<br />
has been a highly successful course.<br />
While the average attendance was<br />
only twenty (previous classes have<br />
been much larger) the students<br />
made up for the lack of numbers by<br />
their earnestness and intelligent in<br />
terest. The discussions following<br />
the lectures were evidence of keen<br />
and unflagging attention by the<br />
students.<br />
The course covered a discussion<br />
of the philosophy, aims and ideals of<br />
Co-operation, the history and extent<br />
of the Movement abroad and in the<br />
United States, the consideration of<br />
practical problems of co-operatives,<br />
and many other aspects of Co-oper-<br />
tion. Stereopticon pictures were<br />
used in connection with some of the<br />
lectures.<br />
The last lecture of the course, on<br />
the Ethics of Co-operation, was giv<br />
en at the co-operative cafeteria.<br />
All the other lectures were given at<br />
the new League House. During the<br />
next few weeks the students will<br />
visit some of the co-operative so<br />
cieties in New York, to study Co<br />
operation in practice. There is<br />
much demand that an additional<br />
course be given. Arrangements will<br />
be made for an extensive course to<br />
be given early in the fall.<br />
THE MISTAKES OF <strong>CO</strong>RONA<br />
It seems cruel to stick a pin through<br />
a society that has failed, and hold it<br />
up for public examination, as one<br />
would with a new species of beetle.<br />
One feels almost sacrilegious in criti<br />
cizing an effort that called forth loy<br />
alty, devotion, and that entailed sacri<br />
fice. But a true regard for the wel<br />
fare of other societies makes it neces<br />
sary to critically examine failures, in<br />
order that lessons and experience may<br />
be gained from others' troubles. Let<br />
us therefore consider the series of<br />
mistakes that led to the failure of the<br />
Corona Co-operative Society, of Cor<br />
ona, Long Island, N. Y.<br />
Mistake No. 1 consisted in tieing up<br />
with the Community Wholesale Pur<br />
chasing Corporation, a spurious co<br />
operative.<br />
Mistake No. 2 consisted in permit<br />
ting the manager appointed by the<br />
co-operative fakers to keep his job.<br />
Before the members were aware of it,<br />
there were several serious leaks. A<br />
new manager was hired after all the<br />
damage had been done.<br />
Mistake No. 3 was the old, familiar<br />
blunder of starting with insufficient<br />
capital. While the society was cap<br />
italized at $10,000, only about $1,400<br />
was ever collected. As a consequence,<br />
it was impossible to open an attrac<br />
tive store, or to buy groceries in large<br />
enough lots to get good prices.<br />
Mistake No. 4 was the final and the<br />
fatal one, and we would call particu<br />
lar attention to it. A creditor whose<br />
bill had not been paid because the<br />
store insisted on deducting for bad<br />
goods delivered, brought a suit for<br />
his money. Of course the store had<br />
a good counter-claim against the cred<br />
itor, for the butter and eggs that had<br />
been sold were unfit for consumption.<br />
Feeling that the court would, by some<br />
miracle, know all these facts, the so<br />
ciety put in no defense, and did not<br />
even appear in court. The inevitable<br />
result was that the creditor got a<br />
judgment against the store by de<br />
fault, and while the members were<br />
peacefully resting upon their moral<br />
right not to pay for damaged goods,<br />
the creditor swooped down upon the<br />
store, and, with the aid of a marshall,<br />
carried off the cash register and hun<br />
dreds of dollars worth of goods. That<br />
was the end. Other creditors swarmed<br />
into the store for their money, and<br />
the business was closed down.<br />
Readers of <strong>CO</strong>-<strong>OPERATION</strong> have<br />
had their attention called to Mistakes<br />
No. 1, 2 and 3. We would now par<br />
ticularly emphasize the importance of<br />
never permitting a judgment to be<br />
taken against your societies by de<br />
fault. If your creditors are rightfully<br />
entitled to payment for their goods,<br />
pay them if you have the money. If<br />
they are not, interpose a defense in<br />
court.
n<br />
122 <strong>CO</strong>-<strong>OPERATION</strong> <strong>CO</strong>-<strong>OPERATION</strong> 123<br />
<strong>CO</strong>-OPERATIVE MILK AND<br />
HEALTH<br />
Since the organization of the<br />
Franklin Co-operative Creamery As<br />
sociation by the citizens of Minneap<br />
olis there has been a marked de<br />
crease in the rate of infant mortality<br />
and deaths from typhoid fever, due<br />
to the improvement in the quality<br />
of milk sold by the "Co-op." Com<br />
menting on the remarkable improve<br />
ment in the quality of the milk, Dr.<br />
Harrington, Commissioner of Public<br />
Welfare of Minneapolis, reported:<br />
"One of the happy results of the<br />
bettered milk supply is that the rate<br />
of typhoid fever deaths, 76 per 100,-<br />
000 population in 1921, is the lowest<br />
recorded in Minneapolis, and one of<br />
the lowest in the United States. It<br />
represents three deaths for the year<br />
1921. Another pleasing result noted<br />
was a lowering of the infant mor<br />
tality rate from 65 in 1920 to 55 per<br />
thousand births in 1921. Still another<br />
result is that more milk is being<br />
sold."<br />
This improvement can be traced<br />
directly to the fact that the Franklin<br />
Co-operative Creamery is now the<br />
largest milk distributor in Minneap<br />
olis; §130,000 worth of dairy prod<br />
ucts are now being supplied monthly<br />
by the Co-operative, at a lower cost,<br />
and for a better product, than have<br />
ever been supplied by dairy compa<br />
nies organized for profit. This con<br />
sumers' co-operative is saving the<br />
lives of many babes and adults, by<br />
eliminating the contaminated milk<br />
formerly supplied by private deal<br />
ers. Co-operation and health go<br />
hand in hand.<br />
NEWS AND <strong>CO</strong>MMENT<br />
A NON-<strong>CO</strong>-OPERATIVE<br />
DEFEATED<br />
Co-operators will be gratified to<br />
know that the "Co-operative League<br />
of America," a non-co-operative or<br />
ganization of Pittsburgh, which has<br />
been making an effort to secure le<br />
gal sanction to operate in Iowa and<br />
in the Province of Ontario, Canada,<br />
has suffered a double defeat. In<br />
Iowa the State Executive Council,<br />
for the second time within three<br />
months, refused it permission to op<br />
erate in that state. The matter was<br />
referred to the Attorney General of<br />
the state for his attention.<br />
In Ontario, Canada, the "league"<br />
attempted to secure special per<br />
mission to operate in that province,<br />
by means of a private bill introduc<br />
ed in the Ontario legislature. The<br />
Co-operative League advised the Co<br />
operative Union of Canada of the<br />
real nature of this organization. The<br />
Canadian Union, realizing the me<br />
nace to genuine co-operatives, cam<br />
paigned against the bill, and called<br />
the attention of members of the leg<br />
islature to the fact that the Pitts<br />
burgh organization was not under<br />
the Canadian law entitled to use the<br />
name "Co-operative." The Minister<br />
of Agriculture oposed the bill. He<br />
said: "I am in favor of anything<br />
that will encourage thrift and sav<br />
ing, but there are certain dangerous<br />
features in this proposal. The use<br />
of the word 'co-operative' should be<br />
very carefully safeguarded." The<br />
bill was killed in committee early in<br />
June.<br />
The Pittsburgh "Co-operative<br />
League" is a declaration of trust so<br />
ciety in which the members have no<br />
control. It is not co-operative and<br />
is guilty of gross misrepresentation<br />
in claiming that it is.<br />
THE STUFF THAT SUCCESS IS<br />
MADE OF<br />
The Goodhue, County, Minn., So<br />
ciety has a big department store at<br />
Red Wing and stores in four other<br />
towns. AnauthoritativereporttoThe<br />
League gives information concern<br />
ing some of the officers and princi<br />
pal members of the society. A co<br />
operative society with such men of<br />
vision, loyalty and intellgence is bound<br />
to prosper, if they have the right<br />
sort of co-operative education. They<br />
are the stuff that co-operative suc<br />
cess is made of:<br />
L. W. Hempftling: President of the<br />
company, and without question one of the<br />
'best Co-operators in the state. He preaches<br />
and practices it.<br />
Fred A. Scherf: Editor of "The Organ<br />
ized Farmer," and Secretary of the com<br />
pany.<br />
Vie H. Carlson: Treasurer of the com<br />
pany, and a well-read farmer, who is al<br />
ways voicing his opinion regardless of op<br />
position.<br />
O. G. Harlis: Vice President, and a<br />
booster.<br />
Joe Reinbold: One of the first members,<br />
a fireman. Always has advanced his per<br />
sonal funds to company when things looked<br />
the blackest. One of the best men.<br />
J. C. Swanson, a well-read booster, who<br />
has put in more capital to make the com<br />
pany succeed than any other man. He al<br />
ways backs up his beliefs with his money.<br />
Regardless of conditions and other nearby<br />
failures, he is sure of his faith in the Co<br />
operative Movement. He has studied the<br />
history of the Movement in many countries.<br />
Get these men interested in anything and<br />
they will put it over. Every one is a<br />
worker.<br />
THE RUSH RUN SOCIETY A 100<br />
PER CENT INVESTMENT<br />
The Rush Run Co-operative So<br />
ciety of Rayland, Ohio, gave a dem<br />
onstration of their social solidarity<br />
by the manner in which they dis<br />
posed of their surplus-savings for<br />
the year 1921. This little society,<br />
composed for the most part of for<br />
eign-born miners, donated $1,500 to<br />
the needy non-members at Rush<br />
Run, Ohio. A donation of $150 was<br />
made for the relief of famine suf<br />
ferers in Russia, and $50 was donat<br />
ed to the labor press. In spite of<br />
these liberal gifts, the society was<br />
able to pay 5 per cent interest on<br />
capital and a savings-return of 4 per<br />
cent, amounting to $1,138. A small<br />
sum was also assigned to the reserve<br />
fund. Inasmuch as the capital of<br />
this society is only $927, the return<br />
to members in the year 1921 was<br />
considerably in excess of 100 per<br />
cent of the capital invested. This<br />
society is affiliated with The Co-op<br />
erative League.<br />
RUSSIA<br />
The Central Union of Russian Co<br />
operative Societies (Centrosoyus) is<br />
busy buying up and collecting all<br />
kinds of raw materials at various<br />
ports. Preparations are being made<br />
by Centrosoyus for carrying on an<br />
extensive export and import trade.<br />
The goods collected by the society by<br />
April 1 for export amounted in value<br />
to $1,290,000, of which $500,000<br />
worth had been delivered to foreign<br />
ports. The total value of goods pur<br />
chased by Centrosoyus for delivery<br />
to ports by May 15 amounted to $3,-<br />
256,000. The goods destined for ex<br />
port consist of flax, hemp, tow, sheep<br />
and camel wool, bristles, furs, goat,<br />
sheep, calf and colt skins. Centro<br />
soyus accepts raw materials for ex<br />
port on a commission basis. The co<br />
operative societies of Russia now oc<br />
cupy a favored position, as compared<br />
with private business. Co-operatives<br />
are free to carry on exporting and<br />
importing, without being hampered<br />
by the many restrictions on private<br />
business imposed by the Government.<br />
CZECHOSLOVAKIA<br />
In the coal basin of Moravian Os-<br />
trau, the consumers' co-operative<br />
sociery Budoucnost (The Future) is<br />
rendering profit business in many<br />
towns a thing of the past. At the<br />
close of 1921 the society had 65,000<br />
members and served 320,000 consum<br />
ers. The society came into existence<br />
through the merging of fourteen inde<br />
pendent societies at the end of the<br />
war. In spite of desperate efforts on<br />
the part of private traders to injure<br />
the co-operatives, they have been<br />
growing until now they have cap<br />
tured the entire business of many<br />
districts. At the close of the year,<br />
the Budoucnost society had 187<br />
stores, nine of which had dry goods<br />
departments. Arrangements are be<br />
ing made for opening other stores,<br />
and it is expected that the society<br />
will have 200 stores during <strong>1922</strong>. The<br />
turnover last year amounted to 250,-<br />
000,000 crowns. A powerful whole<br />
sale society exists which has ex-
124<br />
panded so rapidly that it is now<br />
necessary to open four branch depots.<br />
A co-operative bakery and flour mill<br />
are also being opened. The society<br />
employs 800 workers. Despite the<br />
bitter political fights going on in this<br />
new republic, the co-operatives are<br />
strictly non-political; members of all<br />
parties sink their differences and<br />
unite in supporting the co-opera<br />
tives. The Czech parliament in<br />
January passed a law granting cred<br />
its to the co-operative agricultural<br />
societies, the societies of artisans,<br />
and labor societies. The societies of<br />
consumers received no loans.<br />
ROUMANIA<br />
The number of co-operative socie<br />
ties in Roumania has quadrupled<br />
since 1919. In 1919 there were 360<br />
societies in agricultural communities,<br />
for the joint purpose of sale and<br />
distribution. These societies had a<br />
membership of 18,087, and a paid up<br />
capital of 2,174,460 Lei ($435,000 in<br />
normal currency). By March, 1921,<br />
the number of societies had grown<br />
to 1,428, the membership was 79,660,<br />
and paid up capital 10,655,634 Lei<br />
($2,131,000 normal currency). The<br />
societies have a two-fold function:<br />
they dispose of the agricultural pro<br />
ducts raised by their members, and<br />
they supply the members with sta<br />
ples, agricultural machinery, manu<br />
factured goods, etc. Members in the<br />
mountainous parts of the country dis<br />
pose of their timber through the sales<br />
societies, and receive in return the<br />
cereals and other products of the Co-<br />
operators in the agricultural section<br />
of the country. Not only is the do<br />
mestic trade carried on through the<br />
co-operatives, but arrangements are<br />
being made for organizing the im<br />
portation of a considerable quantity<br />
of agricultural machinery and imple<br />
ments, manufactured goods, etc.,<br />
through the co-operatives.<br />
DENMARK<br />
The Danish Co-operative Bank con<br />
tinued to grow during 1921. Two pri<br />
vate banks were bought out by the<br />
<strong>CO</strong>-<strong>OPERATION</strong><br />
co-operative during last year, and<br />
control was secured in three others.<br />
The central bank in Copenhagen now<br />
has 46 branches, which in turn have<br />
45 sub-sections. During 1921 the<br />
turnover of the bank increased from<br />
10,500,000,000 crowns to 11,500,000,-<br />
000 crowns; the net profits during<br />
the year amounted to 2,309,870<br />
crowns. Of this amount, a million<br />
crowns were placed in the reserve,<br />
which now amounts to 18,000,000<br />
crowns. ———————<br />
INTERNATIONAL C O - O P E R A-<br />
TIVE SUMMER SCHOOL<br />
Brussels has been selected as the<br />
city where the Second International<br />
Co-operative Summer School will hold<br />
its sessions. The school opens July<br />
22d and ends August 5th. It was<br />
organized under the joint auspices of<br />
the British Co-operative Union, the<br />
Belgian Co-operative Union, the Peo<br />
ple's House at Brussels, the Belgian<br />
Labor College and the International<br />
Co-operative Alliance. Well known<br />
co-operative teachers will lecture in<br />
English, French and German on Co<br />
operation and allied topics. Lectures<br />
will be held in the mornings, the<br />
afternoons being devoted to visits to<br />
co-operative establishments.<br />
DEMOCRATIC <strong>CO</strong>NTROL AND<br />
STRIKES<br />
A recent Monthly Circular of the<br />
Labor Research Department (of<br />
which G. D. H. Cole is Honorary<br />
Secretary) has just come to us from<br />
London. In it is the story of the<br />
strike of the 200 employees of the<br />
Bishop Aukland Co-operative So<br />
ciety, from which we quote:<br />
When the National Union of Distributive<br />
Workers called out their members, a new<br />
staff was engaged to take the place of the<br />
strikers. Both sides have appealed to the<br />
members of the Co-operative Society, the<br />
Union claiming that it is fighting for the<br />
right of collective bargaining and against<br />
the employment of blackleg labor. The<br />
directors took a ballot of the members and<br />
secured a majority of four to one in favor<br />
of their policy. Later, at a special mem<br />
bers' meeting, which was called by requi<br />
sition, a resolution demanding a renewal<br />
of negotiations and complete reinstatement<br />
of the employees was carried by 495 votes<br />
to 2. The half-yearly meeting of the so<br />
ciety, which was held subsequently, was<br />
conducted amid considerable uproar. The<br />
committee's report was rejected, and the<br />
committee finally left the platform. The<br />
Chairman of the local Trade Union Com<br />
mittee took charge of the meeting, and a<br />
resolution was passed calling on the com<br />
mittee to reopen negotiations or resign.<br />
Does that read like an open shop<br />
fight conducted by American capi<br />
talists? Can you see the sharehold<br />
ers of the U. S. Steel Corporation<br />
unseating Judge Gary from the<br />
platform at a stockholders' meeting,<br />
putting the Chairman of the Amal<br />
gamated Labor Organizations of the<br />
Steel Industry in his place, and call<br />
ing by a vote of 250 to 1 for the dis<br />
charge of all scab labor in the steel<br />
towns of Pennsylvania, and the in<br />
stallation of union help—and call<br />
ing for Mr. Gary's resignation if he<br />
doesn't comply? Co-operation is a<br />
workers' movement, and not the<br />
cruel, death-dealing standards of<br />
capitalism, but the equitable stan<br />
dards of humanity prevail within it.<br />
CANADIAN <strong>CO</strong>-OPERATIVES<br />
PROGRESS<br />
The co-operative societies in Can<br />
ada, faced with the same economic<br />
depression that prevails in the United<br />
States, are still continuing to serve<br />
the consumers. Here are some prom<br />
ising examples of Co-operation in<br />
Canada.<br />
The British Canadian Co-operative<br />
Society of Cape Breton, in existence<br />
sixteen years, had a turnover during<br />
the last half year of $622,674. The<br />
net surplus saving during that period<br />
was $73,351. As the share capi<br />
tal amounts to $134,564, this sur<br />
plus represents a 54.5 per cent re<br />
turn to the members on the capital<br />
investment or 109 per cent per an<br />
num. These savings were returned<br />
to the members in the form of cash<br />
at the rate of 11 per cent on pur<br />
chases. The society has a member<br />
ship of 2,286. There are five branches<br />
connected with the society which sup<br />
ply the membership with groceries,<br />
meats, men's wear, dry goods and<br />
<strong>CO</strong>-<strong>OPERATION</strong> 125<br />
clothing. This society is to be con<br />
gratulated on the creditable showing<br />
at this time.<br />
The Guelph Co-operative Associa<br />
tion during the past half year had<br />
sales of $122,995. Though this repre<br />
sented a loss in trade, due to hard<br />
times, the society was able to make<br />
a netsurplus-saving of $3,173, which<br />
was distributed to the members as<br />
a 3 per cent savings return. This<br />
was equal to a return of 50 per cent<br />
on the capital investment.<br />
The Industrial co-operative Society<br />
of Valleyfield, which has been in ex<br />
istence since 1903, and the oldest so<br />
ciety to be affiliated with the Ca<br />
nadian Union, paid a five per cent<br />
savings-return to members.<br />
I. C. A. REPORT ON RUSSIA<br />
The special committee appointed by<br />
the International Co-operative Alli<br />
ance to investigate the condition of<br />
the co-operatives in Russia completed<br />
its mission and submitted a prelimi<br />
nary report to the Central Committee<br />
of the I. C. A. The Committee con<br />
sisted of the following members:<br />
Thomas Alien, A. W. Golightly, J.<br />
Hawkins, Joseph English and Henry<br />
J. May, of Great Britain; Victor<br />
Serwy, of Belgium, and Ernest Pois-<br />
son of France. The delegation spent<br />
a strenuous month visiting co-opera<br />
tive societies in Russia. Their report<br />
states that the Co-operative Move<br />
ment in Russia occupies a unique po<br />
sition in influence, power and the ex<br />
tent of its operations; and that the<br />
evidences they saw convinced them<br />
that a complete internal transforma<br />
tion of the Movement is being accom<br />
plished in the direction of uniformity<br />
in principle with the Movements of<br />
other countries.<br />
They recommended that the eco<br />
nomic resources of Russia make it<br />
imperative and mutually advantag<br />
eous that economic relations with<br />
other countries should be established,<br />
preferably through an International<br />
Co-operative Wholesale Society and<br />
an International Co-operative Bank.
126<br />
<strong>CO</strong>-<strong>OPERATION</strong><br />
WORD FROM THE FIELD OF ACTION<br />
KALAMAZOO HAS ABLE MANAGE<br />
MENT<br />
You will be glad to know the Kalamazoo<br />
Society is making some progress, and that<br />
we are hopeful of the future and the ulti<br />
mate success of our society under the man<br />
agement of Mr. Boekeloo, who was our<br />
original manager.<br />
Dr. Warbasse will remember coming out<br />
here and giving us a talk at a meeting<br />
called to hear him, and that at the time<br />
he was here we were having considerable<br />
difficulty both financial and personal. I am<br />
sure he will be glad to learn that the fullest<br />
harmony now prevails and has prevailed for<br />
more than two years, and that we are<br />
slowly but apparently surely coming out of<br />
our difficulties.<br />
We are doing a retail grocery and bakery<br />
business combined, of approximately one<br />
hundred thousand dollars a year, and are<br />
taking in something more than we are pay<br />
ing out, but the margins that prevail in<br />
Kalamazoo make it very difficult to show<br />
substantial earnings. However, the mem<br />
bership as now constituted is not expecting<br />
"dividends" nor unusual profits, and all are<br />
harmoniously co-sperating with their trade<br />
at least, and we are confident we will suc<br />
ceed in establishing a co-operative unit that<br />
will last and grow into an important factor<br />
in the community.<br />
WILLIAM SHAKESPEARE, JR.<br />
Kalamazoo Co-operative Union, Kalamazoo,<br />
Mich.<br />
Our society is composed of 137 families<br />
and did a business in 1921 of $99,535.38.<br />
We did not make a great deal of money.<br />
However, we were able to pay 6 per cent<br />
on capital stock and 7 per cent on loan<br />
capital, and had a small surplus. The first<br />
three months of <strong>1922</strong> we made a trade gain<br />
of 22 per cent. The future looks very<br />
good to us.<br />
J. A. BOEKELOO,<br />
Manager the Kalamazoo Co-operative<br />
Union.<br />
(The report of this society for the first<br />
three months of the year shows that they<br />
are doing a business at the rate of $120,000<br />
a year. During that time their bakery<br />
baked and sold 21,410 loaves of bread.)<br />
PROGRESS AT FAIRHOPE, ALA.<br />
Prices were high in Fairhope, and<br />
became scandalously so during the war.<br />
The workers finally got together and decid<br />
ed to start a store. They rented a shack<br />
for a few dollars in February, 1921, and<br />
three months later were doing so well even<br />
at underselling, thus bringing down prices<br />
in general, that they were able to rent a<br />
store for $65 a month. The membership<br />
up to date is only 90, with a patronage of<br />
75 per cent who are almost entirely farm<br />
ers. The membership fee is $25. There<br />
was a small nucleus of Co-operators in<br />
Fairhope who had had experience in Mobile<br />
and elsewhere.<br />
Then the society decided to move to a<br />
better location, but there were no stores to<br />
be had, and the idea of building was con<br />
ceived. A loan association to finance the<br />
new building was easily formed and has<br />
many advantages. Shares of $100 were<br />
issued to members of the Co-operative only,<br />
interest at 7 per cent; money will be re<br />
deemed in ten years. The store has now<br />
moved into its new quarters—a two-story<br />
red brick building. The store supplies gen<br />
eral merchandise, dry goods, hardware,<br />
groceries, feed, fertilizer, smoked and dried<br />
meats, and baked goods. During the past<br />
year feed and fertilizer comprised one-<br />
third of the business done. In the new<br />
quarters space has also been provided for a<br />
bank and a bakery. Enough money has<br />
already been promised to have this bank<br />
develop into the largest one in Baldwin<br />
County. The society is also in a position<br />
to buy in carload lots. The monthly turn<br />
over amounts to $6,000.<br />
ANNA B. ZELLMAN.<br />
Fairhope, Ala.<br />
QUICK RESULTS WANTED AT<br />
CLEVELAND<br />
Money is coming in somewhat slowly, in<br />
subscriptions to the stock of the City Co<br />
operative Dairy Company, although consid<br />
ering the very stringent times and the great<br />
unemployment, it is not so bad, after all.<br />
The_ trouble is that most of us are too im<br />
patient. We want a big thing like this to<br />
develop over night, when, as a matter of<br />
fact, it should be preceded by an intensive<br />
campaign of education covering a consider<br />
able period. People cannot receive and<br />
assimilate new ideas very quickly. The<br />
growth of ideas takes time. There is no<br />
use trying to jump across this part of the<br />
co-operative work. If we do we find our<br />
selves in hot water a good share of the<br />
time. We are doing some educational work,<br />
and we are shortly going to be able to have<br />
the business going.<br />
0. J. ARNESS,<br />
City Co-operative Dairy Company.<br />
Cleveland, Ohio.<br />
(This Consumers' Co-operative Dairy has<br />
already raised about $30,000 through the<br />
sale of stock. A plant is being installed.<br />
This dairy is controlled by the consumers<br />
of Cleveland, and is to be operated along<br />
the lines which were followed by the Frank<br />
lin Co-operative Creamery of Minneapolis.)<br />
<strong>CO</strong>-<strong>OPERATION</strong><br />
PUBLICATIONS<br />
OF THE <strong>CO</strong>-OPERATIVE LEAGUE<br />
HISTORICAL Per Copy Per 100<br />
3. Story of Co-operation .................................................$ .10 $6.00<br />
7. British Co-operative Movement ........................................ .10 6.00<br />
10. A Baker and What He Baked (Belgian Movement)...................... .05<br />
38. Co-operative Consumers' Movement in the United States............... .06 4.00<br />
39. Consumers' Co-operative Societies in N. Y. State, (Published
THE <strong>CO</strong>-OPERATIVE LEAGUE<br />
(Member of The International Co-operative Allinace)<br />
167 West 12th Street, New York<br />
An educational organization for teaching the history, principles, methods and aims of the<br />
Co-operative Movement and for the promotion of Co-operation in the United States.<br />
Join The League and thus help promote the educational work of the Co-operative<br />
Movement. Individual Membership, $1.00 a year. Subscribe for <strong>CO</strong>-<strong>OPERATION</strong>,<br />
the Monthly Magazine of The League, and keep in touch with the Movement.<br />
Enclosed find $ for Subscription for <strong>CO</strong>-<strong>OPERATION</strong>, $1.00.<br />
£,nciosea nna *........... ior Memberghip in The LEAGUE, $1.00.<br />
Name.. .<br />
Adda-ess.<br />
Date....<br />
Co-operative Central Exchange<br />
Wholesale Grocers and Jobbers,<br />
Bakers<br />
We supply goods to Co-operative Societies ONLY<br />
We are owned and controlled by Co-ooeiatlve<br />
Societies.<br />
We are organized to enable Co-operative Societies<br />
to do collectively what they cannot do indi<br />
vidually.<br />
Co-operative Central Exchange<br />
Offices, Warehouses and Plant:<br />
Winter Street and Ogden Are.,<br />
SUPERIOR, WIS.<br />
Co-operators* L.td. Mutual Fire Insurance Co.<br />
is now writing Insurance in State of Wisconsin.<br />
The Canadian Co-operator<br />
Brantford, Ontario,<br />
Canada<br />
The organ of the Canadian Co-opera<br />
tive Movement, owned by and con<br />
ducted nnder the auspices of The<br />
Co-operative Union of Canada.<br />
Published monthly;<br />
7Sc per annum<br />
MOVING PICTURES<br />
and<br />
Stereopticon Lectures<br />
may be rented from<br />
THE <strong>CO</strong>-OPERATIVE LEAGUE<br />
167 West 12th St., New York City<br />
1. "Soit« Examples of English Co-operation."<br />
Moving pictures ot factory processes (two<br />
reels) . ...............................85.00<br />
H. "Co-operation in the United States."<br />
With 63 Stereopticon views ........... .$3.00<br />
3. "Tile Co-operative Movement in Bnsssla."<br />
With 36 colored Stereopticon views... .$3.00<br />
Co-operation in Scotland<br />
In no part of the world is Co-operation further<br />
developed, or more successfully practised than in<br />
Scotland. If you wish to keep in touch, read<br />
"The Scottish Co-operator"<br />
(Published Weekly)<br />
Subscription: Tear 12 sh.; half-year, 6 sh.<br />
Address, 119 Paisley Road,<br />
Glasgow, Scotland<br />
THE PRODUCER<br />
Issued Monthly Price 3d.<br />
If you want to keep in touch with<br />
business, organization, administra<br />
tive affairs, and problems of the<br />
British Co-operative Movement,<br />
read THE PRODUCER.<br />
Published by<br />
Co-operative Wholesale Society, Inc.<br />
1 Balloon Street, Manchester.<br />
Post free 4 sh. 6d. a year.<br />
The Trade and Technical Organ of British<br />
Co-operation.<br />
THE HOME <strong>CO</strong>-OPERATOR<br />
A four-page magazine for<br />
use in co-operative societies.<br />
Issued monthly, in bundles, $1 per hundred.<br />
Published by<br />
The Co-operative League<br />
Publishing Office, Willimantic, Conn. Al<br />
bert Sonniehsen, Managing Eitor.<br />
(CHFOTON<br />
A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in vol<br />
untary association, produce and distribute for their own use the things they need<br />
Published monthly by The Co-operative League, 167 West Twelfth Street, New York City,<br />
J. P. Warbasse, Editor. Price, ?1.00 a year. Entered as second class matter, December 19,<br />
1917, at the Post Office at New York, N. Y., under (the Act of March 3, 1879.<br />
Vol. <strong>VIII</strong>, No. 8 AUGUST, <strong>1922</strong> 10 Cents<br />
EFFICIENCY, NOT CLASS<br />
A circular issued by the Commu<br />
nist Party of America to the railroad<br />
workers urges a general strike. The<br />
idea is that the workers shall throw<br />
off their chains and take possession<br />
of business and run it for the work<br />
ers. The idealism expressed by com<br />
munists, syndicalists and others who<br />
would suddenly change the economic<br />
system is admirable. Their agitation<br />
is most useful. Their protests against<br />
the rottenness of present conditions<br />
are of incalculable value. But they<br />
neglect one fundamental fact. Things<br />
are most apt to be done, not by the<br />
people whom they want to do them,<br />
but by the people who know how.<br />
Most probably when the present<br />
disorganized world recovers from its<br />
insanity and settles down to business,<br />
the people who will be found running<br />
things will not be from any particular<br />
class. They will not be the capitalists,<br />
as now, nor the communists, as<br />
dreamed of. They will be the efficient.<br />
The people who know how to do<br />
things best will be the ones doing the<br />
jobs. And these efficient people will<br />
come from all classes.<br />
When the capitalists start an in<br />
dustry they appoint at the head a<br />
manager who runs the job in the<br />
interest of the stockholders, who is<br />
able to make profits out of the people<br />
who work and the people who con<br />
VITAL ISSUES<br />
sume. That is the test. The com<br />
munists and similar political reform<br />
ers would ask of the manager first<br />
that he be loyal to his class or party.<br />
That is the test. Neither of these<br />
represent the substantial principle.<br />
Not class, but efficiency, should be<br />
the test. Does he understand the<br />
industry, has he the ability to pro<br />
duce in the interest of all the con<br />
sumers and the workers? This must<br />
be the question.<br />
We are learning this lesson every<br />
day. The co-operative societies that<br />
are succeeding show at least one pe<br />
culiarity: They have efficient manage<br />
ment. The development of efficient<br />
managers is the keystone of success.<br />
In this, Co-operation differs from all<br />
other movements that are striving<br />
for a better world. It does not stop<br />
with theorizing; it learns how to do<br />
the business that the capitalist is do<br />
ing. And it has to have efficient ex<br />
ecutives and do the business better<br />
than the capitalist, or it can not suc<br />
ceed.<br />
The virtue of the Co-operative<br />
Movement is that it is not a class or<br />
party movement. Its success depends<br />
upon capacity to serve the people in<br />
each specific job.<br />
As the consumers are everybody,<br />
efficiency in their interest rests upon<br />
a democratic foundation.
128 <strong>CO</strong>-<strong>OPERATION</strong> <strong>CO</strong>-<strong>OPERATION</strong> 129<br />
TRADE UNIONS BURN MONEY<br />
There is a serious matter for the<br />
trade unionists to think about. Every<br />
one of the big and pretentious hum<br />
bugs in the field of co-operative<br />
quackery in the United States that<br />
has taken the money of the working<br />
people during the past two years has<br />
had the backing of labor leaders.<br />
With the credentials which trade<br />
unionism has given to their "organ<br />
izers" these "organizers" have gone<br />
out over the country and taken mil<br />
lions of dollars from men and women<br />
who could illy afford to lose it.<br />
Fortunately, in the working ranks<br />
of labor are men in every state in<br />
the Union who can and do give labor<br />
sound advice.<br />
But there have also been leaders<br />
who insisted on doing the wrong<br />
thing. It would have been infinitely<br />
better had the leaders advised the<br />
workers to put their money in a pile,<br />
pour kerosene on it, and burn it up.<br />
That method would have the merit at<br />
least that it would not damage the Co<br />
operative Movement and it would be<br />
lost no quicker.<br />
Trade unionism is guilty of inex<br />
cusable looseness in its relation to<br />
this whole matter. Not only is there<br />
looseness of thinking, but of action<br />
also. And it will continue until the<br />
right remedy is applied. Every union<br />
should have a committee on Co-opera<br />
tion. The job of that committee<br />
should be first to educate itself so<br />
that it knows what Co-operation is,<br />
what it looks like. They should learn<br />
how to know it when they see it. Af<br />
ter they have found out about the<br />
facts, the history and accomplish<br />
ments of Co-operation, then they<br />
should find out how it works. They<br />
should get information on the right<br />
ways and the wrong ways of organ<br />
izing and running co-operative enter<br />
prises. They should learn about the<br />
fads, fancies and frauds. Presently<br />
they should become experts and every<br />
co-operative proposition that comes<br />
within the field of that union should<br />
have to be analyzed in the laboratory<br />
of the committee on Co-operation.<br />
THE LLANO <strong>CO</strong>LONY<br />
We publish in this number a short<br />
article on the Llano Colony, of Lees-<br />
ville (or New Llano), Louisiana. This<br />
article is important because it is writ<br />
ten by a man who has invested most<br />
of his savings in the colony.<br />
It is also important because cer<br />
tain labor leaders and their publi<br />
cations are endorsing this enter<br />
prise.<br />
For several years we have been col<br />
lecting information on this colony.<br />
Members of The League have visited<br />
it and sent in their reports. We have<br />
much information from members of<br />
the colony. This article which we<br />
are publishing is the mildest and least<br />
condemnatory in our possession. Most<br />
reports are very bitter.<br />
Readers must realize that the peo<br />
ple who have put their money into<br />
this enterprise naturally want it to<br />
succeed. They want to protect their<br />
investment. Notwithstanding this<br />
fact, a surprising number of people<br />
have been willing to make a frank<br />
statement to The League concerning<br />
the colony in order, as they say, to<br />
prevent others from being taken in<br />
as they have been.<br />
The Llano Colony in Louisiana is<br />
neither co-operative nor democratic,<br />
and it misrepresents in pretending<br />
that it is. People who put in their<br />
money are given the privilege of go<br />
ing there and working hard for a poor<br />
living. The investment is a very ex<br />
pensive one. Reports show that the<br />
management is autocratic, domineer<br />
ing and unjust. The literature and<br />
statements are highly exaggerated.<br />
Well-meaning people are deluded<br />
by a notion that such a colony can<br />
become the beginning of a co-opera<br />
tive commonwealth. There is not the<br />
ghost of a chance of success. Such<br />
an experiment, if it does not ulti<br />
mately fail, can only become a capi<br />
talistic business. A hundred years<br />
of experimenting with these colonies<br />
in the United States has never devel<br />
oped a single co-operative success.<br />
They attempt to set aside the sim<br />
ple principles of social economics.<br />
Whether we like it or not, these prin<br />
ciples can not be defied; they are in<br />
exorable.<br />
The people in such a colony either<br />
produce more or less than they con<br />
sume. If they produce less than they<br />
consume they will fail financially. If<br />
they produce more than they consume<br />
they will sell their surplus product<br />
to the world of consumers for profit.<br />
The more profit they can make by<br />
exploitation of the consurrers, the<br />
greater is their success. But such<br />
success is capitalistic success. If they<br />
once get a taste of it, the inevitable<br />
result is that they make their group<br />
restricted and circumscribed. The<br />
fewer actual members, the greater<br />
the profit.<br />
The ideal situation, in which the<br />
colonists produce all they use and<br />
need and no more, is impossible in<br />
the present capitalistic society. To<br />
reach that point they have to pass<br />
through the gateway of capitalist<br />
success, and that gate leads to their<br />
co-operative destruction.<br />
A co-operative commonwealth com<br />
ing out of such a thing is impossible.<br />
Such enterprises rest either upon<br />
the dreams of uninformed visionaries<br />
or the machinations of fraudulent ex<br />
ploiters.<br />
This New Llano Colony is giving a<br />
kind of education. The workers are<br />
purchasing this simple information at<br />
$1,000 per person. We think that is<br />
a very high price. But if that is the<br />
only way they are willing to get it,<br />
then perhaps that is the necessary<br />
way.<br />
The colony will continue to live so<br />
long as people keep on putting in<br />
their $1,000 apiece. When this in<br />
flow of money stops then the bubble<br />
will burst. We only beg the victims<br />
not to exclaim: "Another co-operative<br />
failure!" We hope that the lesson<br />
they have bought and paid for will<br />
be truly educational.<br />
The important thing to make clear<br />
is that such schemes as this colony<br />
are not a part of the Co-operative<br />
Movement, nor are they in any sense<br />
a contribution toward the solution of<br />
the great social question.<br />
STRAIGHT FROM GENOA<br />
In the May number of this maga<br />
zine we said that the Genoa Confer<br />
ence was a meeting called by an ag<br />
gregation of tottering governments<br />
to try to keep alive a collapsing eco<br />
nomic system, and that nothing con<br />
structive could come out of it. We<br />
were right. Here is a sample of its<br />
work:<br />
The Central Committee of the In<br />
ternational Co-operative Alliance was<br />
meeting at the same time at Milan.<br />
It was doing constructive things. To<br />
give the Genoa Conference something<br />
really worth while to consider, the<br />
Central Committee sent it the follow<br />
ing resolution:<br />
"In order to facilitate exchange of com<br />
modities between nations; especially in the<br />
case of foodstuffs, and in order to develop<br />
the spirit of solidarity and mutual aid, it is<br />
recommended that the services of the co<br />
operative organizations should be utilized."<br />
Here is a proposal of merit. It is<br />
practical. It would work. And these<br />
are the three reasons why the gentle<br />
men of Genoa acted as they did upon<br />
this resolution.<br />
According to the "International<br />
Labor Bulletin" (Genoa):<br />
"Various criticisms of this text were ad<br />
vanced. Sir Phillip Uloyd Graeme, the<br />
British representative, stated that he con<br />
sidered this article particularly unfortunate<br />
and likely to sow discord between the vari<br />
ous organized classes. He thought that co<br />
operation did not need special encourage<br />
ment and that such encouragement might<br />
be dangerous. The article was rejected by<br />
six votes to four."<br />
So Sir Phillip and the other higher<br />
intellects of the Genoa Conference<br />
think that Co-operation is apt to sow<br />
discord between the various classes!<br />
They think that encouraging Co<br />
operation is dangerous! These are<br />
the "best minds," that are now in<br />
control of the affairs of the world.<br />
These are the sort of minds that<br />
hurled twenty million people at one<br />
another's throats and for four years<br />
watered the soil of Europe with bloodi<br />
and manured it with corpses.
130 <strong>CO</strong>-OPEKATION <strong>CO</strong>-OPEKATION 131<br />
The only organized class, among<br />
whom Co-operation will sow discord,<br />
is that class that makes profits by<br />
the exploitation of the people and<br />
whose profit making is the greatest<br />
cause of the world's discords today,<br />
and humanity's greatest burden.<br />
As to the encouragement of Co<br />
operation being dangerous, it is. It<br />
is dangerous to those interests that<br />
have to have conferences at Ver<br />
sailles, Washington, Genoa and The<br />
Hague. It is so dangerous that the<br />
type of diplomats and politicians who<br />
sit at these conferences will lose their<br />
jobs and their power when the people<br />
have learned a little better how to<br />
protect themselves by Co-operation.<br />
When Co-operation comes in, war,<br />
strife and diplomats go out.<br />
THE FEDERAL RESERVE BANK<br />
In the June number of this maga<br />
zine, in an article on The Federal Ke-<br />
serve Bank, we implied that the large<br />
profits of these banks went to the<br />
investors rather than to the patrons.<br />
This is not correct. Neither of these<br />
gets the huge profits. All profits above<br />
6 per cent theoretically go to the<br />
U. S. government.<br />
In order to get accurate informa<br />
tion on this subject we wrote to a<br />
banker, formerly connected with the<br />
system, who knows. He replied: "As<br />
a matter of fact I think the United<br />
States Treasury has not received any<br />
of the profits so far. The directors<br />
have been too busy squandering this<br />
money, in a sense, in extravagant<br />
buildings and, in some cases, extrava<br />
gant salaries, all, of course, permitted<br />
by the Federal Reserve Board."<br />
If the U. S. Treasury does not get<br />
the 97 to 215 per cent profits, some<br />
body does. It goes somewhere. It is<br />
too good to be at large alone.<br />
WHAT WE OWE THE POOR<br />
It is related that at the annual ban<br />
quet of the Arizona Bankers' Associa<br />
tion, after everybody had eaten all<br />
that he could, and all of the speeches<br />
had been made and toasts offered,<br />
there was a general lull in the proceed<br />
ings and an especially sleek and pious-<br />
looking banqueter arose and spoke as<br />
follows:<br />
"Mr. Chairman, we have enjoyed<br />
a lovely repast and our minds have<br />
been carried among higher things on<br />
this occasion. We have been made<br />
aware of the blessings and fortunes<br />
which a kind Providence has visited<br />
upon us. It seems to me that it would<br />
be fitting on this occasion to give<br />
some thought to those unfortunates<br />
whom fate has provided we must<br />
always have with us. I ask: Can we<br />
not do something for the poor?"<br />
A death-like silence fell upon the<br />
scene. Then arose the man of action.<br />
"I move, Mr. Chairman, that we give<br />
the poor," he said, "three cheers!"<br />
This was carried with a will, and the<br />
banquet closed.<br />
And why not give three cheers for<br />
the poor? Society owes them much.<br />
Had it not been for the poor men of<br />
Kochdale we should have waited till<br />
some other place developed enough<br />
poverty to create a hunger to find a<br />
way out. Will it ever be the rich who<br />
will want to change the present sys<br />
tem and demand something better?<br />
No; they are satisfied.<br />
Every bad economic system creates<br />
an antitoxin of its own. Poverty, in<br />
the presence of riches, creates discon<br />
tent, and discontent is the natural<br />
remedy that cures the social disease.<br />
When the masses of people become<br />
poor enough, and can see their pov<br />
erty contrasted with the wealth of<br />
the few, they will find a way out.<br />
When the gaunt form of poverty has<br />
visited yet a few more millions of our<br />
people; when the dividends fail to<br />
come in and those who now live with<br />
out work join the ranks of the poor;<br />
when the cry of the hungry sweeps<br />
across the land like the hot breath<br />
of the sorocco—then the people will<br />
find a way to live in peace and justice.<br />
Through the gates of poverty the<br />
world will march to freedom.<br />
SEEN HERE AND THERE<br />
By J. P. W.<br />
We are not threatened with any<br />
societies in the United States that are<br />
too big—yet. Some day we may be.<br />
So we had better be thinking about it.<br />
In Europe they are a serious problem.<br />
My attention was drawn to this mat<br />
ter by Kobert Stewart of the Scottish<br />
Wholesale. When he joined the Kin-<br />
ning Park Society in Glasgow, he<br />
said, it had 8,000 members. About<br />
400 members used to attend the mem<br />
bers' meetings. They were alert and<br />
interested. Now the Kinning Park<br />
Society has 30,000, and the members'<br />
meetings are attended by 100 or 200<br />
people. In a big, successful society<br />
the members get used to seeing<br />
things go along smoothly in the hands<br />
of the efficient directors.<br />
I remember my surprise in finding<br />
that the Koyal Arsenal Society at<br />
Woolwich, London, had a preserve<br />
and jam factory of its own. It got<br />
fruit from its own farms. "We can<br />
make jam cheaper than we can buy it<br />
from the C. W. S.," they said. The<br />
Woolwich Society has 100,000 mem<br />
bers. Its stores extend over an area<br />
more than fifteen miles wide.<br />
The result is that these big socie<br />
ties go into production and leave the<br />
little societies to support the Whole<br />
sale. The existence of the Wholesale<br />
depends upon the support of the mem<br />
ber societies. The Wholesale helps<br />
the societies while they are small, and<br />
it seems wrong that these societies<br />
should compete with it when it has<br />
helped them to a position of strength.<br />
The Woolwich Society has salaried,<br />
full-time directors. They have gotten<br />
the busines of running their stores<br />
down to a system. There is not much<br />
left for the members to do. The busi<br />
ness runs along like that of a great<br />
corporation. Many of these people<br />
remember the time when they used<br />
to have their meetings in William<br />
Rose's house, when they had one<br />
store and were struggling with many<br />
DANGERS OF THE BIG SOCIETY<br />
problems. Now the problems go into<br />
the mill and are solved by machinery.<br />
Something must be done to keep<br />
the members acquainted and working<br />
and thinking together. I like the way<br />
the Berlin society is doing it. This<br />
society has 125,000 members and 150<br />
stores. Each member belongs to a<br />
certain district which has a store, and<br />
each store district holds its own meet<br />
ings. Thus there are virtually 150<br />
societies of about 800 members each.<br />
Each has local autonomy. The store<br />
districts are united into groups made<br />
up of from seven to ten store districts.<br />
These hold monthly meetings begin<br />
ning at 7 or 7:30 p. m. Then there<br />
is the central meeting of the dele<br />
gates from all of the districts. At<br />
the members' meetings of the store<br />
districts neighbors meet neighbors,<br />
and they really exercise a control over<br />
the affairs of this big society. This<br />
gets the people back to the old "town<br />
hall meeting" idea.<br />
We must get this idea clearly in<br />
mind. The efficiency of profit busi<br />
ness rests upon centralized admin<br />
istration and centralized control.<br />
The real essence of efficiency is in<br />
the former. Democracy demands not<br />
administration but control by the<br />
people. And that is the unique con<br />
tribution of Co-operation to indus<br />
try.<br />
Large societies will do well to make<br />
every effort to preserve the neighbor-<br />
liness that exists in the small society.<br />
This is possible only by keeping it<br />
divided into neighborhood groups.<br />
Decentralized interest and control<br />
and centralized administration should<br />
be the aim. As to conflict with the<br />
co-operative wholesale, that should<br />
never occur. The work of the whole<br />
sale and its constituent societies<br />
should be organized so that each has<br />
its functions and confines itself to its<br />
own job.
132<br />
<strong>CO</strong>-<strong>OPERATION</strong><br />
LLANO <strong>CO</strong>LONY EXPOSED<br />
By A RECENT <strong>CO</strong>LONIST<br />
The Llano Colony is run at pres<br />
ent by a few fanatics who got con<br />
trol of it almost since it was estab<br />
lished here some four and one-half<br />
years ago. They moved here from<br />
California because of failure. There<br />
were too many air castles. Here we<br />
have the same trouble: a few ex<br />
tremists who only consider the psy<br />
chological side of a question and<br />
give no thought to the materialistic<br />
side of the same question.<br />
Their papers are published for<br />
consumption and the truth is very<br />
much exaggerated. The only rea<br />
son they are published is to have an<br />
income from installment member<br />
ships from Which the colony is sup<br />
ported. The colony is far from self-<br />
supporting. They really do not<br />
want to be; they feel that the out<br />
side world should support us, to<br />
build the first city in the future co<br />
operative commonwealth. And they<br />
have been collecting thousands and<br />
thousands of dollars, and have been<br />
wasting millions of working hours of<br />
the members who, coming here after<br />
large expense, cannot readily go<br />
away, but must submit to their bu<br />
reaucratic control and dictatorship.<br />
As to democratic control, there is no<br />
sign of it. Nor is the manager re<br />
quired to make any report! I do<br />
not believe there is another place<br />
where a man has more freedom and<br />
power to spend other people's<br />
money without any accounting to<br />
the members than here. And the<br />
manager who has this power, Mr.<br />
Pickett, is the person who advo<br />
cates more than anybody else that<br />
members should abolish all suspi<br />
cions !<br />
About the ownership. The colony<br />
is incorporated as the Llano Del Rio<br />
Co. of Nevada. The manager has<br />
full power to transfer, sell, bargain,<br />
buy, mortgage, etc., any piece of<br />
land the colony owns. The mem<br />
bers don't know and have no right<br />
to say anything in any transaction<br />
that is going on. The old-timers are<br />
most of them on the board of di<br />
rectors, and have their invested<br />
money secured by land titles and<br />
mortgage deeds. One outstanding<br />
fact is that the former manager, I<br />
know, just before he left here,<br />
deeded to himself a tract of timber-<br />
land which was bought at that time<br />
from a new member's money.<br />
This matter came up about two<br />
months ago at a meeting where Mrs.<br />
Thurnage's ousting was discussed,<br />
and the present manager gave the<br />
flimsiest reason for the transfer of<br />
that particular piece of land to<br />
the manager's name. He has it yet.<br />
Criticism is absolutely not al<br />
lowed. Unless a man falls in line<br />
everything he says is branded "de<br />
structive."<br />
I consider the colony not as a co<br />
operative, but a communist experi<br />
ment under the pretense of being a<br />
co-operative. By the very nature of<br />
it, it becomes a rule of bureaucrats,<br />
whose undemocratic rule becomes<br />
repulsive to every man who has re<br />
spect for personal liberty, who<br />
wants to have rights and say in an<br />
enterprise where his labor power is<br />
expended. For this reason, there<br />
are many more people who have left<br />
the colony after a short stay than<br />
those who stay here. Among those<br />
who stay are many who would go<br />
away if they had the money to do so.<br />
The colony life here is a comfort to<br />
old men, of whom there are quite a<br />
few, as they are relieved of eco<br />
nomic worries as long as the colony<br />
is in existence. They are working<br />
eig*ht hours as best they can, and are<br />
taken care of. Their needs are very<br />
primitively satisfied. The member<br />
ship fee which they pay is $1,000;<br />
of course they are harmless to the<br />
management.<br />
Unless a person is an absolute com<br />
munist and knows what it means to<br />
slave for that ideal without any<br />
question, under very adverse condi<br />
tions as long as he lives, and under<br />
centralized autocratic dictatorship,<br />
he doesn't belong here. He cannot<br />
find here free Co-operation.<br />
To the credit of the colonists, I<br />
must say that many are very earnest<br />
in their experiment and belief in<br />
the future communist co-operative<br />
commonwealth, and many of the<br />
people here are working very hard.<br />
That is the only thing I can say for<br />
them just now. Should they be able<br />
<strong>CO</strong>-<strong>OPERATION</strong> 133<br />
to get in production engineers, they<br />
might probably grow; but the in<br />
herent defects still will be here.<br />
I believe they are committing an<br />
injustice to the Co-operative Move<br />
ment by collecting money under<br />
that name. If they would collect it<br />
as a communist experiment, well<br />
and good — contributors would be<br />
prepared to lose it. As it is, it<br />
causes very much dissatisfaction.<br />
MAYNARD, A TOWN IN NEW ENGLAND<br />
The story of Co-operation in May-<br />
nard, Mass., has been written many<br />
times, and does not need re-writing.<br />
But occasionally a correspondent or<br />
a visitor inquires of The Co-opera<br />
tive League as to whether the Fin<br />
nish people of the Bay State are con<br />
tinuing their fine work. The League<br />
returns an emphatic affirmative to<br />
such questioners. A few figures<br />
from one of these co-operative towns<br />
give added emphasis to our asser<br />
tion.<br />
Maynard has a population of only<br />
7,000; yet it supports four co-opera<br />
tive societies (too many, of course,<br />
but let that point drop for the pres<br />
ent). The International Co-opera<br />
tive Association, made up of Polish,<br />
Russian and Lithuanian, has about<br />
100 members and does a grocery<br />
and bakery business of $1,000 a<br />
week. The First National Co-opera<br />
tive Association, of about the same<br />
number of members, handles gro<br />
ceries, meats, milk, general mer<br />
chandise, and runs its own bakery.<br />
Each week it does nearly $2,000 of<br />
business. The Riverside Co-opera<br />
tive Society, now 44 years old and<br />
planning to observe its 50th jubilee<br />
before the decade is out, handles<br />
groceries, meats, hardware, dry<br />
goods, candies, etc., for the English-<br />
speaking population; at present it<br />
turns over $1,000 a week. The<br />
United Co-operative Society (Fin<br />
nish) has nearly 500 members, does<br />
a business of $4,000 a week, and in<br />
addition to groceries, meats, general<br />
By C. L.<br />
merchandise, etc., also sells furni<br />
ture, operates a large bakery, res<br />
taurant and milk business.<br />
So we find in the little town of<br />
Maynard four grocery stores, three<br />
bakeries, two butcher shops, a flour<br />
ishing restaurant, and the sale of<br />
hardware, furniture and dry goods,<br />
all under co-operative auspices. Co<br />
operation here employs fifty men<br />
and women to handle an annual<br />
business of almost $400,000. Three<br />
of the societies own their own spa<br />
cious quarters, and one owns consid<br />
erable land which it is not yet using,<br />
two tenement houses, and other<br />
property.<br />
A glance at one or two of these<br />
co-operative activities is interesting.<br />
In the restaurant 150 people eat reg<br />
ularly, paying $6 a week for such<br />
good, substantial meals as are writ<br />
ten about by novelists or described<br />
by food experts, but which are never<br />
found in any commercial restaurant<br />
or hotel. The United Society had a<br />
surplus of $1,400 in the last four<br />
months, from the operation of this<br />
restaurant. The manager of such<br />
an institution run under private con<br />
trol would expect to lose twice that<br />
amount on such meals at such a<br />
price.<br />
The same society delivers 1,000<br />
quarts of milk each day, at 9 cents<br />
a quart. They pay the farmers 7<br />
cents, and the 2 cents difference<br />
pays for bottling and delivery. They<br />
do not save any money for the so<br />
ciety on this department of the busi-
134<br />
ness, but they save a great deal for<br />
the residents of Maynard; every<br />
other milk dealer in town has had<br />
to come down to 10 cents. In fact,<br />
the Dairymen's Association in that<br />
district a year ago tried to put the<br />
co-operative milk dealers out of<br />
business by bringing in their own<br />
milk and selling it below 9 cents,<br />
but they retired within a few weeks<br />
with a deficit of $4,000 and a<br />
healthy respect for the efficient<br />
methods of the Co-operators they<br />
were fighting.<br />
A couple of blocks away are the<br />
large buildings of the Riverside Co<br />
operative Association. Many of the<br />
men who organized this society in<br />
1878 are now dead and their chil<br />
dren are carrying on the work.<br />
These Co-operators may not be do<br />
ing such a large and successful busi<br />
ness as their younger Finnish<br />
friends, but they are the people who<br />
link us up directly with the days of<br />
actual pioneering in America. And<br />
<strong>CO</strong>-<strong>OPERATION</strong><br />
the 6 per cent savings-returns to<br />
members at the end of 1921 is an<br />
indication of robust health such as<br />
very many of our younger societies<br />
might well envy.<br />
There should be' more Co-opera<br />
tion between all these Co-operators;<br />
that goes without saying. There is<br />
no room for two milk companies and<br />
three bakeries in such a small com<br />
munity. Nevertheless, such centers<br />
as Maynard, Fitchburg and one or<br />
two other places in Massachusetts<br />
are deserving of more attention from<br />
Co-operators outside New England.<br />
There should be more pilgrimages<br />
eastward. No footweary travelers<br />
to the famous shrines of bygone cen<br />
turies ever found greater inspira<br />
tion than is available at the present<br />
day to the co-operatiye enthusiasts<br />
who care to take a dip into one of<br />
these pools to renew once more their<br />
faith in the possibilities of the Con<br />
sumers' Co-operative Movement.<br />
THE <strong>CO</strong>-OPERATIVE LAUNDRY OF LYNN<br />
Co-operative soapsuds, ironing<br />
boards and clotheslines have not<br />
been developed in this country as<br />
they should be. But we have our<br />
pioneers, and successful laundries<br />
are being operated in eight or ten<br />
cities and towns of the United<br />
States.<br />
Lynn, Massachusetts, is one of<br />
these cities. Last August, after<br />
months of organizing and educating,<br />
the little group of pioneers rented a<br />
basement, installed some machinery,<br />
and sent out a wagon after business.<br />
The customary mistakes were made.<br />
The members insisted on going into<br />
business with only $3,300, whereas<br />
they should have had at least<br />
$5,000. They did not have time to<br />
do all the educational work neces<br />
sary, and as a result they have been<br />
getting the greater part of their ed<br />
ucation since August, and at the ex<br />
pense of more than $2,000 of the<br />
shareholders' money. The price of<br />
shares was too low ($5). Some of<br />
the labor unions invested in the en<br />
terprise on the understanding that<br />
the unions as such were to have<br />
complete control of the activities of<br />
the association; and when they<br />
found otherwise, a few of the less<br />
intelligent labor men stirred up<br />
trouble.<br />
But these mistakes have occurred<br />
before to other societies. The lead<br />
ers of the laundry swallowed the<br />
bitter doses and continued the work.<br />
When all the local dealers in laun<br />
dry machinery refused to sell them<br />
the necessary equipment, they went<br />
out and hunted until they found<br />
some second-hand machinery that<br />
the Laundrymen's Association knew<br />
nothing about. When the local<br />
agencies for laundry supplies, soaps,<br />
chemicals, etc., refused to sell to<br />
them, they combed the city of Bos<br />
ton until they found one little con<br />
cern that would take their good<br />
money. When the shoemaker whom<br />
they put in as manager proved to be<br />
a doubtful investment as manager<br />
of a laundry, they got rid of him<br />
and installed a skilled man from the<br />
Laundry Workers' Union, who cut<br />
down most of the excess overhead<br />
expenses. And when, during the<br />
first month of operation, the em<br />
ployees had a disagreement with the<br />
shoemaker manager and all went<br />
out on strike, the directors held<br />
emergency meetings, met with the<br />
employes, and finally, after the loss<br />
of two or three days out of the<br />
busiest part of the week, effected an<br />
agreement satisfactory to everyone.<br />
From August until well along into<br />
January, the Citizens' Co-operative<br />
Union Laundry lost money. Since<br />
that time they have been doing a<br />
little better than break even. De<br />
livery expenses will be cut still lower;<br />
and the directors are trying their<br />
best to cut down on costs of rentals<br />
and power and live steam. Six<br />
Poland was'hers and two extractors<br />
are in operation. The work is almost<br />
entirely wet-wash and rough-dry,<br />
with a very little finished work. Two<br />
wagons and a truck are busy the<br />
larger part of the week; twelve peo<br />
ple are on the pay roll.<br />
These Co-operators in Lynn are<br />
under special disadvantages, due to<br />
the fact that the strike of the laun<br />
dry workers of the city last year was<br />
defeated, and at the present time all<br />
the laundries are open shop except<br />
the co-operative laundry, which<br />
not only observes union conditions<br />
I never saw a sadder thing,<br />
Beneath God's vaulted blue,<br />
Than that grim line of starving men<br />
Who had no task to do.<br />
They came before the frozen stars<br />
Had faded from the sky,<br />
And all day long the wealthy folks<br />
Rolled curiously by.<br />
They did not ask for lordly things,<br />
For temples or for lands,<br />
They only asked for right to use<br />
The glory of their hands.<br />
<strong>CO</strong>-<strong>OPERATION</strong> 135<br />
THE UNEMPLOYED<br />
inside the plant, but has members of<br />
the Teamsters' Union for delivery<br />
work. Their competitors all get<br />
along with a much smaller labor<br />
cost. And to make the situation<br />
still harder, the organized labor<br />
movement in the city fails to appre<br />
ciate as it should this service being<br />
rendered by the co-operative laun<br />
dry, and the majority of the union<br />
workers patronize private laundries<br />
because they are fooled by clever<br />
advertisements and cleverer solicit<br />
ors into believing that these profit-<br />
making laundries are cheaper!<br />
Excellent administrative and edu<br />
cational work is being done by J. G.<br />
Campbell, Mrs. Agnes Andrews and<br />
a few other far-sighted and untiring<br />
Co-operators. Without them the<br />
laundry would have died in earliest<br />
infancy, to the delight of all the<br />
other laundry owners in town. Last<br />
spring a meeting was held under the<br />
joint auspices of the Citizens' Co<br />
operative Union Laundry and the<br />
Workingmen's Co-operative Bakery<br />
(Jewish) at which a secretary of<br />
The Co-operative League spoke.<br />
Other educational meetings have<br />
been held at intervals of about a<br />
month, and in the future more of<br />
these joint meetings of the bakery<br />
members and the laundry members<br />
promise additional strength to both<br />
societies and the rapid spread of co<br />
operative understanding throughout<br />
the city of Lynn.<br />
And all day long the waiting line<br />
Stood shaking in the street,<br />
And, oh, their willing, idle hands,<br />
And, oh, their aching feet I<br />
I never saw a sadder thing<br />
In all the city's strife,<br />
Than that worn host of ragged men<br />
Who waited there for life.<br />
They did not ask for alms of gold,<br />
Nor things of lordly worth;<br />
They only asked the right to share<br />
The labor of the earth.<br />
DANA BURNETT.
136 <strong>CO</strong>-<strong>OPERATION</strong><br />
FROM THE LEAGUE HEADQUARTERS<br />
THE THIRD <strong>CO</strong>-OPERATIVE <strong>CO</strong>N<br />
GRESS<br />
The arrangements for the Third<br />
Co-operative Congress, to be held in<br />
Chicago in October, the call to which<br />
was published in the June number<br />
of this magazine, are progressing. The<br />
Board of Directors of The League,<br />
through the Executive Board, have<br />
appointed certain committees to deal<br />
with special subjects. There are<br />
about twenty-five of these subjects,<br />
and twenty-five committees to handle<br />
them. The members of each commit<br />
tee are the people believed to be most<br />
competent to deal with the subject.<br />
The chairman will collect information<br />
and formulate a report. A copy of<br />
this will be sent to each member of<br />
the committee for his criticism,<br />
amendments and additions. The re<br />
ports will then be sent back to the<br />
chairmen of the committees, who will<br />
put them into shape for presentation<br />
to the Congress.<br />
This plan provides that the matter<br />
that will come before the Congress<br />
will have been carefully collected, will<br />
be properly digested, and represent<br />
deliberate thought. The Co-operative<br />
Movement in the United States is be<br />
ing promoted by thoughtful study, by<br />
work and by education. It can not<br />
be done by talk.<br />
The local committee of arrange<br />
ments will shortly have selected the<br />
meeting place of the Congress. It<br />
will be announced in due time.<br />
ADVICE TO STORE MANAGERS<br />
Leakage<br />
The manager should watch con<br />
stantly for leaks. Little leaks re<br />
duce profit and are dangerous be<br />
cause they are not easily noticed.<br />
A few are suggested:<br />
1. Throwing away waste paper,<br />
bottles, barrels and boxes. They<br />
should be sold.<br />
2. Forgetting to save old price<br />
tags, twine, bags and paper.<br />
3. Overweight (which is as bad<br />
as underweight).<br />
4. Failure to keep account of goods<br />
sold on credit.<br />
5. Forgetting to charge goods sold<br />
on credit.<br />
6. Wrong pricing.<br />
7. Over-buying, which causes<br />
dead stock to accumulate.<br />
8. Carelessness in figuring stock<br />
needed.<br />
9. Careless arrangement of stock.<br />
10. Use of stock by employees, or<br />
loaned outside.<br />
11. Bad advertising.<br />
12. Failure to take cash dis<br />
counts.<br />
13. Depreciation of fixtures<br />
through carelessness.<br />
14. Lack of store system causing<br />
unnecessary steps.<br />
15. Waste in lights.<br />
16. Waste in window dressing,<br />
and leaving awning down at night.<br />
17. Waste in time.<br />
18. Using a No. 2 bag when a<br />
No. 1 or wrapping paper will do.<br />
19. Carrying too much bulk ce<br />
real in which worms develop.<br />
20. Carelessness in emptying<br />
bags of coffee, rice, etc. See that<br />
nothing is left in the bag.<br />
21. Leaving stock on the floor<br />
where dampness and dirt spoil it.<br />
22. Allowing moist goods to be<br />
come dry and leaving covers open.<br />
23. Keeping clerks on who are<br />
not efficient or who create a bad at<br />
mosphere in the store, which af<br />
fects the rest, and lessens efficiency.<br />
Do not be penny wise and pound<br />
foolish, however. Too many man<br />
agers who are paying wages to<br />
clerks they do not need, are worry<br />
ing themselves to death over the<br />
waste of twine, paper, etc.<br />
Finance, Accounting, Auditing<br />
If the manager makes out checks<br />
they should be countersigned. All<br />
c'hecks should be made out in ink.<br />
Insist on the directors installing a<br />
good bookkeeping system, and a<br />
stock control, which is your safe-<br />
guard. The manager should know<br />
(1) his percentage expense; (2)<br />
gross surplus-saving ("profit"); (3)<br />
net surplus-saving (earnings); (4)<br />
what principal lines produce sur<br />
plus-saving (profits). Surplus-sav<br />
ing cannot be figured until every<br />
expense has been paid. The per<br />
centage figures must be figured on<br />
the selling price. The expense per<br />
centage is found by multiplying the<br />
total expense by 100 and dividing by<br />
the gross receipts. There should be a<br />
difference between the expense and<br />
gross surplus-saving per cent of at<br />
least 10 per cent. To find the net<br />
surplus-saving, subtract the total ex<br />
pense from the gross surplus-sav<br />
ings. If the inventory shows an in<br />
crease over the previous year's<br />
stock, add this to the gross and net<br />
surplus-saving. If a decrease, sub<br />
tract. This gives you, the year's<br />
business. Do not estimate anything.<br />
You must know that every figure is<br />
correct.<br />
If the society owns the building,<br />
you should charge the business<br />
whatever rent you would have to<br />
pay for it.<br />
To find out what you are saving<br />
on any particular article, subtract<br />
the expense per cent of that selling<br />
price from the selling price, and the<br />
net cost from the remainder.<br />
When the expense for the year<br />
has been determined in percentage<br />
it should be the basis for future<br />
marking of goods. In trying to raise<br />
the percentage of "mark-up" it is<br />
wise to go over the lines upon which<br />
there is least competition and mark<br />
up what you safely can to allow for<br />
the many items upon which little<br />
saving can be made.<br />
In trying to reduce expenses,<br />
watch the delivery and see if its ex<br />
pense is out of proportion; perhaps<br />
you can get along without delivery.<br />
Cut down on lights and advertising.<br />
Watch your overhead expense con<br />
stantly, and reduce it to the safety<br />
point. For percentage of overhead<br />
costs see "How to Start and Run a<br />
Co-operative Store."<br />
<strong>CO</strong>-<strong>OPERATION</strong> 137<br />
JEWISH SOCIETIES AFFILIATE<br />
WITH THE LEAGUE<br />
At a special convention held in<br />
Paterson, N. J., June llth, the Jewish<br />
Co-operative Federation voted to af<br />
filiate with The Co-operative League.<br />
For the past few years, the necessary<br />
educational work of the Jewish co<br />
operative societies had been per<br />
formed by the Jewish Co-operative<br />
Federation, which comprised about<br />
thirty societies. These societies for<br />
the most part conduct bakeries and<br />
butcher shops in the eastern states.<br />
The following resolution was passed:<br />
The special convention resolves that the<br />
Jewish co-operatives be affiliated with The<br />
Co-operative League, and be under its juris<br />
diction. Taking in consideration the fact<br />
that the Jewish co-operatives have certain<br />
particular interests be it therefore resolved<br />
to have a special Jewish department in<br />
The League which should devote itself to<br />
everything concerning the Jewish Co-opera<br />
tive Movement. It should be named "The<br />
Jewish Co-operative Federation—affiliated<br />
with The Co-operative League."<br />
The Jewish Federation appointed<br />
an executive committee of nine mem<br />
bers, who are to make recommenda<br />
tions for the conduct of Jewish edu<br />
cational work by The Co-operative<br />
League. The executive committee,<br />
with the approval of The League,<br />
elected Aaron Stolinsky to act as<br />
Jewish secretary. Mr. Stolinsky will<br />
carry on special educational work for<br />
Jewish co-operative societies, under<br />
the supervision of The Co-operative<br />
League.<br />
All Jewish co-operative societies<br />
are urged to participate in the activi<br />
ties of their federation, which is now<br />
a part of the national Co-operative<br />
Movement.<br />
STUDY <strong>CO</strong>URSE<br />
Trade unions, colleges and study<br />
groups are advised to send for the<br />
League's Syllabus of a Course of<br />
Study on Co-operation. Now is the<br />
time to build a foundation.
138 <strong>CO</strong>-<strong>OPERATION</strong> <strong>CO</strong>-<strong>OPERATION</strong> 139<br />
CLEVELAND <strong>CO</strong>-OPERATIVE<br />
DAIRY OPENED<br />
On the morning of June 28th, eight<br />
wagons of the City Co-operative<br />
Dairy started out to deliver milk.<br />
This marked the opening of the co<br />
operative dairy which is the answer<br />
of the consumers and workers of<br />
Cleveland to the arrogant milk dealers<br />
who locked out their employees last<br />
fall. The dairy was organized with<br />
the assistance of prominent Co-opera<br />
tors and labor officials of Cleveland.<br />
The Franklin Co-operative Creamery<br />
Association of Minneapolis gave much<br />
practical advice.<br />
Twelve hundred consumers, fifteen<br />
labor unions and three co-operative<br />
societies subscribed about $30,000 to<br />
the capital stock of the dairy. Months<br />
were taken to organize the business<br />
on a sound basis. The dairy is con<br />
trolled by consumers, who are mostly<br />
unionists. No member has more than<br />
one vote. Dairy products will be sold<br />
at current prices, and surplus-savings<br />
will be rebated to consumers.<br />
Though operations of the dairy be<br />
gan during the last days of June, the<br />
"Opening Day" was celebrated on<br />
July 9th. Many members and sympa<br />
thizers turned put to see the dairy<br />
"with its working clothes on." An<br />
entertainment committee showed vis<br />
itors around, explaining the use of<br />
the different machines. Milk was<br />
served to visitors.<br />
The sound technique of Co-opera<br />
tion is followed consistently by this<br />
new dairy co-operative. An educa<br />
tional committee and a women's guild<br />
have been appointed to develop the<br />
co-operative spirit of the society.<br />
PACIFIC <strong>CO</strong>-OPERATORS WIN<br />
VICTORY<br />
The Co-operators of San Diego, Cal.,<br />
came off victorious in one' of the final<br />
stages of their fight against the spu<br />
rious Pacific Co-operative League and<br />
Pacific Co-operative Stores, Inc.,<br />
which went into bankruptcy some<br />
NEWS AND <strong>CO</strong>MMENT<br />
months ago. A complete victory now<br />
seems assured.<br />
The San Diego Co-operators have<br />
brought legal action for the control<br />
of the three stores they had financed.<br />
The case is being fought by the re<br />
ceiver of the P. C. L., who contends<br />
that the San Diego stores are the<br />
property of the bankrupt company<br />
and should be sold to satisfy the debts<br />
of the creditors. The local Co-opera<br />
tors have put up a plucky fight and<br />
have so far won all the legal skir<br />
mishes for possession of their prop<br />
erty.<br />
The' latest victory was the favorable<br />
report of the Special Master in Chan<br />
cery who recommended to the U. S.<br />
Circuit Court that the three stores be<br />
delivered up to the local Co-operators.<br />
The report states that the P. C. L.<br />
sold the three San Diego stores with<br />
out the knowledge and consent of<br />
their rightful owner, the San Diego<br />
Co-operative Association, and recom<br />
mends that the local co-operative as<br />
sociation, which furnished the capital<br />
for the stores, should have possession<br />
of them. If the San Diego Co-opera<br />
tors are' upheld in this decision, thou<br />
sands of dollars contributed by the<br />
workers, and three stores, will be<br />
rescued from the P. C. L. and a prece<br />
dent will be established whereby other<br />
stores may be rescued from the Pa<br />
cific League entanglements.<br />
<strong>CO</strong>-OPERATIVE PICNIC AT<br />
BLOOMINGTON<br />
The Co-operators of Bloomington,<br />
111., have demonstrated that they have<br />
team-work in play as well as in busi<br />
ness matters. They arranged a co<br />
operative picnic for a Saturday after<br />
noon in July that was the talk of the<br />
town. Nearly 2,000 people attended.<br />
Large delegations of Co-operators and<br />
unionists came from nearby towns to<br />
share in the fun. The picnic was held<br />
in Miller Park, in Bloomington.<br />
During the afternoon all sorts of<br />
sports were indulged in. The girls<br />
had a potato race and foot race, the<br />
boys ran races, had a shoe and oxford<br />
scramble, and the grown-up women<br />
folks had a nail-driving contest. Not<br />
to be outdone, the men staged a<br />
clothes-hanging contest.<br />
After the fun, a basket lunch was<br />
served, and coffee, ice cream and lem<br />
onade were shared. In addition to<br />
the fun, the occasion was made a<br />
profitable one, through speeches by<br />
Mrs. Halas and Victor Olander.<br />
RAILROAD BROTHERHOOD EN<br />
DORSES <strong>CO</strong>-<strong>OPERATION</strong><br />
The Brotherhood of Locomotive<br />
Firemen and Enginemen, at their<br />
Twenty-ninth Convention, held re<br />
cently, endorsed the' Consumers' Co<br />
operative Movement. The Rochdale<br />
plan was particularly commended by<br />
the Convention, which instructed<br />
John F. McNamee, the editor of the'<br />
official journal of the Brotherhood,<br />
to furnish detailed information and<br />
copies of model by-laws to the mem<br />
bers of the organization, which would<br />
assist them in establishing co-opera<br />
tive stores. Mr. McNamee, who is<br />
the secretary of The League, was<br />
praised for the valuable assistance he<br />
had rendered the Co-operative Move<br />
ment during the past year. It was<br />
recommended that the Brotherhood's<br />
State Legislative Boards "be instruct<br />
ed to use every effort towards the<br />
enactment of such legislation as will<br />
further the co-operative cause and<br />
prohibit the activities of impostors<br />
and scheme promoters."<br />
LEWISTON ASSOCIATION DOU<br />
BLES ITS BUSINESS<br />
The Lewiston Co-operative Associa<br />
tion, of Lewiston, Idaho, is in a better<br />
condition than ever before. The store<br />
sells groceries, feed, paints, varnishes,<br />
roofing material, hardware, clothing,<br />
etc. Within a year the sales increased<br />
from $3,500 a month to about $6,000<br />
a month. The report for the past<br />
year shows a net surplus-saving on<br />
sales of almost 4 per cent. A 2 per<br />
cent savings-return to members and<br />
a 1 per cent return to non-members<br />
were distributed.<br />
The Lewiston! Co-operative made<br />
the mistake early in its history of<br />
affiliating with the Pacific Co-opera<br />
tive League. They realized their<br />
mistake in time to break off their con<br />
nections before becoming involved in<br />
the swindle of the P. C. L. The soci<br />
ety, knowing the value' of educational<br />
work, has organized a Women's<br />
Guild. It issues a monthly bulletin to<br />
the members. The Lewiston Co-op<br />
erative Association is affiliated with<br />
The Co-operative' League.<br />
SEATTLE GRANGE WAREHOUSE<br />
TAKES OVER FOOD PROD<br />
UCTS ASSOCIATION<br />
The Grange Warehouse, the co-oj>-<br />
erative wholesale of Seattle, has tak<br />
en over the Co-operative Food Prod<br />
ucts Association. The' latter was<br />
organized by the unions of Seattle<br />
during the big strike five years ago.<br />
It had a paid up capital of $50,000 and<br />
was doing a business of half a million<br />
dollars a year at one time. The de<br />
pression incident to unemployment<br />
and the' discouragement caused iby<br />
the failure of the false co-operatives<br />
which took much of the workers'<br />
money during the past two years<br />
prompted the Food Products to turn<br />
over its business to the Grange.<br />
<strong>CO</strong>-OPERATIVE PLAY GIVEN<br />
The Cleveland District Co-opera<br />
tive League recently gave a success<br />
ful entertainment, in which a three-<br />
act play, "The Spirit of Co-opera<br />
tion," delighted the audience. About<br />
350 Co-operators turned out to see<br />
the play and hear the songs and talks<br />
on Co-operation. Addresses were<br />
delivered by Roy Shanks, John F.<br />
McNamee, Albert Coyle, H. W. Bone<br />
and O. J. Arness. Music and vaude<br />
ville acts completed the program.<br />
This successful entertainment of<br />
the Cleveland District League should<br />
inspire other groups to arrange such
140 <strong>CO</strong>-<strong>OPERATION</strong> <strong>CO</strong>-<strong>OPERATION</strong> 141<br />
programs during the summer months<br />
—preferably out of doors.<br />
THE BRITISH <strong>CO</strong>NGRESS<br />
Brighton, England, during the first<br />
week of June, was the scene of the<br />
54th annual congress of the Co-opera<br />
tive Union, the national educational<br />
federation of British co-operative so<br />
cieties. The sixteen hundred dele<br />
gates present represented a member<br />
ship of 4,526,475 Co-operators. Prec<br />
edents were shattered by the appoint<br />
ment for the first time of a woman<br />
to preside over the congress. The<br />
new President, Margaret Llewelyn<br />
Davies, delivered a noteworthy in<br />
augural address, emphasizing the<br />
fundamental character of the Co<br />
operative Movement.<br />
"We are working for no patch<br />
work modifications, for no 'reconcilia<br />
tion of capital and labor,' for no 'in<br />
fusion of a better spirit' into old in<br />
dustrial forms," she said. "We are<br />
laying the foundations of a new in<br />
dustrial civilization. The rallying cry<br />
for the whole labor world is the re<br />
placement of capitalism by an indus<br />
trial democracy producing for use. It<br />
is such a non-capitalist society that<br />
Co-operators are actually creating.<br />
Our program transfers the power of<br />
capitalism into the hands of the peo<br />
ple organized democratically as con<br />
sumers ; makes capital the servant of<br />
labor; allows for a partnership with<br />
the workers; abolishes profit, social<br />
izes rent, and will ultimately get rid<br />
of the present wages system. It<br />
opens the great portals of interna<br />
tional trade in such a way that all<br />
nations may pass through it frater<br />
nally together. It gives real power<br />
to our political democracy by the cre<br />
ation of an economic democracy."<br />
The congress went on record in<br />
favor of the establishment of an inde<br />
pendent co-operative daily newspa<br />
per, in order to combat the persistent<br />
campaign of misrepresentation to<br />
which co-operatives had been sub<br />
jected during the past year. The po<br />
litical policies of the Movement were<br />
discussed, and demands were made<br />
upon the government to cease dis<br />
criminating against co-operative en<br />
terprises. The establishment of a<br />
co-operative college, the attitude of<br />
co-operative societies towards their<br />
employees, and other important is<br />
sues were debated.<br />
It was announced at the congress<br />
that the Co-operators of Great Bri<br />
tain had subscribed £74,190,375 to<br />
the capital stock of their enterprises;<br />
that the land and buildings owned by<br />
their societies were valued at over<br />
£28,000,000, while the goods on hand<br />
in their establishments were worth<br />
£25,000,000. The sales in these socie<br />
ties in 1920 amounted to £219,000,-<br />
000, on which a surplus-saving of<br />
£18,000,000 was created for distribu<br />
tion among the members in propor<br />
tion to their purchases.<br />
One of the most inspiring moments<br />
in the congress was the international<br />
meeting, which was addressed by<br />
German,, French, Belgian, Swedish,<br />
Finnish, Russian, Georgian and In<br />
dian delegates. The foreign dele<br />
gates reported on the condition of<br />
their co-operative societies and<br />
pledged themselves to work towards<br />
the international solidarity of all co<br />
operative societies.<br />
$3,000,000 IN STRIKE AID<br />
The Co-operative Union of England<br />
has just issued a report on the assist<br />
ance rendered by the co-operative so<br />
cieties of Great Britain during the<br />
coal strike last year. "Societies have<br />
no cause to regret their action at the<br />
time of the dispute," says the report.<br />
"But for their assistance and gener<br />
ous support, the sufferings of the<br />
miners would have been greater, and<br />
the value of the service rendered by<br />
societies to the Miners' Unions will<br />
not soon be forgotten by the organ<br />
ized workers. The extent of this<br />
service was indeed remarkable. To<br />
gether, the amount of money loans<br />
granted to miners' organizations and<br />
of credit given to members of<br />
the various miners' organizations<br />
reached no less a sum than £605,719.<br />
A large portion of this amount has<br />
since been repaid to the societies, and<br />
repayment of the remaining portion<br />
is proceeding satisfactorily."<br />
This sum does not include the out<br />
right donations of meals and relief<br />
work made by many co-operative so<br />
cieties. One society provided a meal<br />
daily for 350 children of the strikers<br />
all during the strike. Many others<br />
permitted the miners to use their<br />
halls free of charge, and supplied<br />
bread and other goods at cost price.<br />
In addition, thousands of pounds were<br />
contributed outright to the strike<br />
funds by co-operative societies.<br />
In this fashion, the workers by<br />
uniting as consumers, were able to<br />
secure substantial assistance from<br />
the co-operative enterprises they had<br />
built up themselves.<br />
THE BRITISH EDUCATIONAL<br />
UNION<br />
The Co-operative Union, the edu<br />
cational federation of British co<br />
operative societies, now comprises<br />
practically all co-operatives in the ter<br />
ritory covered by the Union. At the<br />
end of 1921 there were 1,334 societies<br />
affiliated with the Union. There re<br />
main only 163 societies outside the<br />
Union. The subscriptions of affiliated<br />
societies to the Union amounted to<br />
$175,000 for the year. This money<br />
was disbursed for educational work.<br />
Congresses were held, courses ar<br />
ranged, lecturers toured, and other<br />
educational work performed. The<br />
affiliated societies contributed $13,000<br />
to the Russian Relief Fund and sub<br />
stantial contributions were made for<br />
the relief of the striking miners.<br />
The Co-operative League in the<br />
United States is organized along the<br />
lines of the British Co-operative<br />
Union. It is the only national fede<br />
ration of the Movement in this coun<br />
try. It aims to unite as large a pro<br />
portion of the co-operatives as does<br />
the British Union. Its opportunities<br />
for service depend upon the support<br />
of the local co-operatives.<br />
THE GREAT RUSSIAN FAIR<br />
The famous Nijni-Novgorod Fair<br />
is opened on August 1, after being<br />
closed for several years. It will be<br />
held under the auspices of the Rus<br />
sian government and the Russian<br />
co-operatives, especially the Central<br />
Union of Consumers' Societies ("Cen-<br />
trosoyus").<br />
The Nijni-Novgorad Fair is the<br />
greatest in the world. It was orig<br />
inally held in Kazan, the Tartar cap<br />
ital, but was transferred in the six<br />
teenth century to Makarieff, and<br />
thence, in consequence of a fire, to<br />
Nijni-Novgorod, on the Volga. This<br />
is the center of an extensive system<br />
of inland navigation which connects<br />
it with all parts of Russia. At times<br />
as many as 400,000 people have gath<br />
ered for the forty days during the<br />
fair.<br />
The volume and variety of mer<br />
chandise dealt in at the fair are very<br />
great: Textiles, furs, skins, horse<br />
and camel hair, precious stones,<br />
metal gods, agricultural machinery,<br />
tools, utensils of all kinds, Persian<br />
carpets, etc.<br />
The fair is the great meeting place<br />
for interchange of commodities be<br />
tween East and West. The co-oper<br />
ative organizations, from the incep<br />
tion of the Co-operative Movement,<br />
have taken an active part in the fair.<br />
In 1896 there was a conference of<br />
delegates of co-operative organiza<br />
tions at Nijni-Novgorod, and it was<br />
at that conference that it was decided<br />
to unite these organizations into the<br />
Ail-Russian Central Union of Con<br />
sumers' Societies "Centrospyus,"<br />
which commenced its activities in<br />
1898 with only 18 affiliated co-opera<br />
tive societies, and it now embraces<br />
practically the whole population of<br />
Russia.<br />
Before the war Centrosoyus ac<br />
tively participated in the fair. It had<br />
its own warehouses, office and hotel<br />
for accommodating representatives<br />
of consumers' and other types of co<br />
operatives, and brought to the fair<br />
all kinds of goods and raw materials<br />
I
142 <strong>CO</strong>-<strong>OPERATION</strong> <strong>CO</strong>-<strong>OPERATION</strong> 143<br />
of home production, as well as cer<br />
tain produce from abroad.<br />
No tariff, imposts or hindrances of<br />
any kind are placed upon the import<br />
of goods, nor on the export of pur<br />
chases made at the fair.<br />
<strong>CO</strong>-OPERATIVES FEED STARV<br />
ING AUSTRIA<br />
Thoughtful students of social con<br />
ditions in Austria are agreed that the<br />
Co-operative Movement is the only<br />
sound organization now existing in<br />
that sorely beset land. The Co-opera<br />
tive Society in Vienna alone conducts<br />
144 distributive stores, which supply<br />
the wants of half the people of that<br />
city. During the year 1920-1921, the<br />
membership of the society rose from<br />
140,541 to 152,513, while the turn<br />
over increased tremendously, due not<br />
only to the decline in the value of<br />
the Austrian crown, but also to the<br />
increase in business. The savings<br />
bank deposits of the society increased<br />
enormously. The society owns 172<br />
houses, which are rented to members.<br />
While the government and private<br />
business in Austria are bankrupt,<br />
morally and economically, the Co<br />
operative Movement is every day<br />
growing in power.<br />
AUSTRALIAN MOVEMENT<br />
GROWS<br />
The first census of the1 co-opera<br />
tives of Australia discloses the exist<br />
ence of more than one hundred Roch<br />
dale co-operatives, which have an ag<br />
gregate annual turnover of 4,500,000<br />
pounds. Nine of these societies do an<br />
annual business in excess of 200,000<br />
pounds. The Co-operative Society of<br />
Adelaide, South Australia, has a mem<br />
bership of 162,000. The total num<br />
ber of Co-operators in Australia is in<br />
excess of 200,000.<br />
New South Wales has a co-opera<br />
tive wholesale that had a turnover<br />
last year of 425,000 pounds. The<br />
capital of the wholesale amounts to<br />
23,928 pounds.<br />
Most of t h e co-operatives listed<br />
have paid substantial savings-returns<br />
to members.<br />
FISHING IN UKRAINIA<br />
From "Isvestia," we learn that the<br />
Peoples Commissariat of Supplies has<br />
granted a lease of the fishing rights<br />
in the Black Sea to the All-Ukrainian<br />
Central Co-operative Union. These<br />
rights extend to the estuaries of all<br />
Ukrainian rivers flowing into the<br />
Black Sea and allow the opening of<br />
fish-curing factories and of all enter<br />
prises directly or indirectly connected<br />
with the fishing industry. The All-<br />
Ukrainian Central Co-operative Union<br />
may sub-lease the fishing-rights, pre<br />
ferably to Red Army men, and, with<br />
the consent of the Commissariat of<br />
Supplies in each case, at reduced<br />
rents, when the original rent paid by<br />
the Union will be reduced accord<br />
ingly.<br />
S<strong>CO</strong>TCH HELP RUSSIA<br />
On April 17th the Scottish Co-oper<br />
ative Wholesale Society (S. C. W. S.)<br />
despatched via Riga £1,000 worth of<br />
commodities, as agreed at the last<br />
quarterly meeting. The consignment<br />
included drapery goods to the value<br />
of £275 and the following foodstuffs:<br />
250 bags of flour; 166 bags haricot<br />
beans; 115 bags rice; 22 cwts. of fat;<br />
and 360 dozen quarter-pound tins of<br />
cocoa.<br />
The goods are being sent through<br />
the Friends' Relief Committee.<br />
THE INTERNATIONAL SPIRIT OF<br />
I FELLOWSHIP<br />
* To the Co-operative i^eague,<br />
Dear Comrades:<br />
For your cordial good wishes to our Co<br />
operative Congress L* Eisenach, we wish<br />
to thank you sincerely. We regret exceed-<br />
in .rlv that it is not possible for you to par<br />
ticipate in this occasion.<br />
The German Consumers' Co-operative<br />
Movement, because of the depreciation in<br />
•the value of the currency, has at the pres<br />
ent time great difficulties to overcome. We<br />
hope, however, that with good fortune, we<br />
will be in a position to accomplish all that<br />
our high ideal demands of us. In the<br />
knowledge that this ideal is the same as that<br />
towards which the co-operatives of all lands<br />
aspire, we clasp your hand in comrade<br />
ship.<br />
With comradely greetings,<br />
Zentralverband deutscher Konsumvereine,<br />
HBINRICH KAUFMANN.<br />
WORD FROM THE FIELD OF ACTION<br />
BACK TO EDUCATION<br />
We have many, many problems in the Co-<br />
opeative Movement, but every one which we<br />
undertake to straighten out leads us back<br />
to the same one general problem—the lack<br />
of education. This cannot be emphasized too<br />
strongly.<br />
Seattle, Wash.<br />
A. S. GOSS,<br />
Manager, Associated<br />
Grange Warehouse Co.<br />
VILLA GROVE EXPANDING<br />
I wish to congratulate the League on its<br />
new home and commend <strong>CO</strong>-<strong>OPERATION</strong><br />
for its instructive and constructive articles.<br />
Our society is gradually expanding, having<br />
added the ice business this spring, and we<br />
are now working on a large deal for another<br />
line to add to the groeries, meats, coal and<br />
ice. Villa Grave, 111.<br />
GEORGE L. KENNEDY, President.<br />
Villa Grove Co-operative Society.<br />
ARE WE BREEDING BRASS MONKEYS?<br />
I want to write you a few lines in ap<br />
preciation of your good work. I am a sub<br />
scriber to <strong>CO</strong>-<strong>OPERATION</strong> and several<br />
foreign co-operative papers, but there is no<br />
paper that I delight in reading as that of<br />
<strong>CO</strong>-<strong>OPERATION</strong>. It is so plain and offers<br />
such sensible advice, and I have often<br />
thought that if Co-operators would only<br />
take the advice of this little magazine, what<br />
a great forward mo-e Co-operation would<br />
make. But talking to them seems like talk<br />
ing to a brass monkey.<br />
Miami, Fla.<br />
LAWRENCE A. YEATMAN.<br />
SAN BERNARDINO TAKES OVER A<br />
BANK<br />
The 'big thing »n the Pacific Coast just<br />
now is the co-operative banking proposition<br />
started in San Bernardino, but soon coming<br />
to Los Angeles.<br />
The San Bernardino Movement is one of<br />
the healthiest I have seen for a long time.<br />
They have a fine store in the main street,<br />
right in the business section, and two small<br />
er ones. They are up-to-date in their me<br />
thods and are run by intelligent and com<br />
petent men who know their business and<br />
who appear genuinely interested in the<br />
movement. A steam laundry, the capital<br />
for which was raised in union labor circles<br />
in the midst of a laundry workers strike,<br />
has been very successful. And finally the<br />
co-operators of San Bernardino are taking<br />
over control of a local bank, helped by the<br />
Cleveland Engineers Bank and acting on the<br />
advice of Dr. McCaleb.<br />
It is hardly necessary to tell you that the<br />
movement is a genuinely democratic work<br />
ing-class one. San Bernardino is fortunate<br />
from our standpoint in being the location of<br />
big railroad shops, and having a fine class of<br />
citizens.<br />
Arrangements have now progressed so far<br />
that it is practically certain that a big cam<br />
paign will be started very soon in Los<br />
Angeles in regard to the co-operative bank.<br />
The San Bernardino bank capital will be<br />
raised from $100,000 to $500,000; and of the<br />
latter amount, it is expected that with the<br />
aid of the Cleveland Engineers Bank, $300,-<br />
000 will be the share of Los Angeles. Union<br />
Labor has definitely endorsed the proposi<br />
tion. The bank will be made a state-wide<br />
one, under the California laws which permit<br />
a bank to have branches; and I anticipate a<br />
big development. It will be in Southern<br />
California first, but propaganda is being'<br />
pushed as far as San Francisco already.<br />
Los Angeles, Cal. THOMAS H. BELL.<br />
SAULT STE. MARIE ENLARGES<br />
BUILDING<br />
Our business is still growing, and of<br />
course when business is increasing you are<br />
compelled to enlarge your quarters. This<br />
is the way with us at the present time. The<br />
building that we bought three years ago is<br />
now too small, so we are compelled to build<br />
an addition.<br />
Our bakery has surely made very fine<br />
progress. Co-operative bread is at the pres<br />
ent time sold in ninety per cent of the stores<br />
of the Sault and Chippewa County. You<br />
no doubt realize that it is a hard proposi<br />
tion for us to induce independent stores to<br />
sell bread with a very attractive co-opera<br />
tive wrapper on every loaf. We first put<br />
quality in it and then we asked our members<br />
to talk co-operative bread to their friends<br />
and in this way the independent stores be<br />
gan to ask us to sell them our bread, and of<br />
course we were glad to do so, for in the<br />
bakery game volume is what counts.<br />
We also had to install a new oven, as<br />
the old one was too small. So you can see<br />
that we are growing in at least the grocery<br />
and bakery business.<br />
Our meat market is also showing a nice<br />
increase. At the present time it is doing<br />
an average of $25,000 per month, which I<br />
think is encouraging, considering condi<br />
tions.<br />
Saulte Ste. Marie, Mich.<br />
LEO LE LIEVRE, Manager,<br />
Soo Co-operative Mercantile Assn.
••!<br />
144 <strong>CO</strong>-<strong>OPERATION</strong> <strong>CO</strong>-<strong>OPERATION</strong><br />
NEW BOOKS<br />
"DR. WILLIAM KING AND THE <strong>CO</strong>-<br />
OPERATOR"<br />
This book, published by the Co-operative<br />
Union, contains an opening chapter by<br />
T. W. Mercer on the life and teaching of<br />
Dr. King. Most of the volume is a republi-<br />
cation of that rare periodical "The Co-opera<br />
tor" which was published from 1828 to 1830<br />
at Brighton by Dr. King. The twenty-eight<br />
numbers are faithfully reproduced and thus<br />
made accessible in the literature of Co<br />
operation. The reader will at once realize<br />
that Dr. William King was the father of<br />
the British Co-operative Movement; he was<br />
the first to give it a philosophy. The volume<br />
is enriched by a number of letters written<br />
by Dr. King to other early Co-operators.<br />
"The Co-operator" was started by Dr.<br />
King in 1828 to instruct the people in the<br />
principles of Co-operation. He saw how<br />
confused the people were on this subject.<br />
His magazine not only explained the prin<br />
ciples but he gave advice on the business of<br />
conducting co-operative stores and other en<br />
terprises. He was an educator and an ideal<br />
ist. He emphasized the importance of co<br />
operative education not only for members<br />
but for their children. Still this pioneer<br />
teacher was attacked and reviled by those<br />
who misunderstood. In 1830 he discon<br />
tinued the publication of "The Co-operator,"<br />
but into its pages he had written the best<br />
thought that had ever been given to the sub<br />
ject.<br />
If he had never written anything else, the<br />
following sentence should be given a place<br />
of distinction: "Co-operation is a voluntary<br />
act, and all the power in the world can not<br />
make it compulsory; nor is it desirable that<br />
it should depend upon any power but its<br />
own."<br />
[ "KONSUM-GENOSSENSCHAFTEN"<br />
This book, by Professor Robert Wilbrandt,<br />
is a part of the series on "Gemeinschafts-<br />
kultur" published in Stuttgart, <strong>1922</strong>, by the<br />
Moritz Press. It gives an idea of the phil<br />
osophy and methods of Co-operation and<br />
analyses its possibilities as a social agency.<br />
Professor Wilbrandt looks upon Co-operation<br />
as a Movement capable of playing a large<br />
part in the reorganization of society upon<br />
a just basis but he does not see in it a com<br />
pleted social and economic system. It is en<br />
couraging to find quotations from the<br />
American magazine <strong>CO</strong>-<strong>OPERATION</strong> cited<br />
to elucidate the philosophy which is grow<br />
ing out of this great Movement.<br />
NEW BRITISH UNION PAMPHLETS<br />
"The Inaugural Address," by M. Llewelyn<br />
Davies at the Fifty-Fourth British Congress,<br />
is brought out by The Co-operative Union<br />
in pamphlet form with an excellent picture<br />
of Miss Davies. The only criticism of this<br />
excellent address is of the tendency to<br />
segregate the work of women from that of<br />
men in the Co-operative Movement. It is<br />
a fine document by a fine woman.<br />
"Co-operation and the Social Conscience,"<br />
by Norman Angell, is an address given at<br />
the Brighton Congress. It deals with the<br />
social conscience but not with Co-operation.<br />
As such it is a thoughtful and suggestive<br />
treatise, as is the case with all of the writ<br />
ings of Mr. Angell. It is most useful in call<br />
ing attention to the loose thinking, or the<br />
lack of thinking, which characterizes the<br />
minds of such as Mr. Harding's "leaders of<br />
thought" in these days.<br />
"Educational Policy," by A. V. Alexander,<br />
shows how the war destroyed interest in edu<br />
cation. While the British Movement was<br />
cutting down on educational standards and<br />
appropriations, it was blithely voting hun<br />
dreds of millions of dollars for making war<br />
on Russia. Yet, so long as the people- are<br />
saddled by -a thing like the British Govern<br />
ment, they must expect war and the sup<br />
pression of education that goes with it; at<br />
least when the money is needed to promote<br />
the interests of profit business and privilege.<br />
What is the government for, if not for that?<br />
"Mutual Aid in Education," by S. Fair-<br />
brother, is a thoughtful contribution to this<br />
subject. This address reminds us that the<br />
pionees in the Co-operative Movement did<br />
not have much education. But they wanted<br />
it and believed in it. The state did not<br />
supply it. They did not ask the state to<br />
do so. They organized education within the<br />
Movement. The early societies not only<br />
carried on co-operative education, but they<br />
conducted classes in literature, science, his<br />
tory and art. This educational work has<br />
continued. It has great possibilities, for the<br />
people in their voluntary societies, found<br />
ed upon the principles of mutual aid, can<br />
educate themselves better than the state<br />
can.<br />
"The Financial Position of the Co-opera<br />
tive Movement in Relation to New Forms<br />
of Administration in the Retail Trade," by<br />
George Riddle, is another of the valuable<br />
addresses at the Brighton Congress of the<br />
Union. The business statistics of the Brit-<br />
ih societies are give_n. These show that the<br />
Movement is financially sound and growing.<br />
The menaces to the Co-operative Movement<br />
are the combines, trade associations and<br />
price rings that foreshadow the coming con<br />
solidations of profit business. To meet this,<br />
Co-operation must have an unlimited supply<br />
of capital, efficiency and attention to every<br />
thing that makes for the well-being of its<br />
members, and perfect co-operation among<br />
all its organizations and units. Mr. Riddle<br />
advises "a, capital redemption fund" in<br />
every society, which should be a reserve<br />
to obviate the necessity of borrowing mony,<br />
which should save interest charges, make<br />
lower prices possible, and guarantee the<br />
stability of the society."<br />
PUBLICATIONS<br />
OF THE <strong>CO</strong>-OPERATIVE LEAGUE<br />
HISTORICAL Per Copy Per 100<br />
S. Story of Co-operation . ................................................f .10 $6.00<br />
7. British Co-operative Movement ........................................ .10 6.00<br />
10. A Baker and What He Baked (Belgian Movement)...................... .05<br />
38. Co-operative Consumers' Movement in the United States............... .05 4.00<br />
39. Consumers' Co-operative Societies in N. Y. State, (Published toy Con<br />
sumers' League) .................................................. .10<br />
TECHNICAL<br />
4. How to Start and Run a Rochdale Co-operative Society.................. .10 4.00<br />
6. System of Store Records and Accounts................................ .50<br />
6. A Model Constitution and By-Laws for a Co-operative Society........... .05 2.50<br />
8. Co-operative Education. Duties of Educational Committee Defined..... .10<br />
9. How to Start a Co-operative Wholesale................................ .10<br />
27. Why Co-operative Stores Fail ......................................... .02 1.00<br />
2. Co-operative Store Management ...................................... .10<br />
14. How to Start and Run a Women's Guild................................ .06<br />
15. How to Organize a District Co-operative League ........................ .10<br />
MISCELLANEOUS<br />
16. Model Co-op State Law ............................................... .10<br />
17. Syllabus for Course ~of Lectures, with References and Bibliography.... 35<br />
46. Producers' Co-operative Industries ................................... .10<br />
11. Control of Industry by the People Through the Co-operative Movement... .10<br />
12. Credit Union and Co-operative Store.................................. .05 1.75<br />
34. Co-operative Movement (Yiddish) .................................... .02 136<br />
43. Co-operative Housing ................................................. .10<br />
42. Co-op Homes for Europe's Homeless ................................. .10<br />
ONE-PAGE LEAFLETS<br />
(One cent each; 50 cents per 100; $2.50 cer 500; $4 per 1,000)<br />
(1) Principles and Aims of The Co-operative League; (17) Do You Know why You Should Be a<br />
Co-operator; (20) Why Loyalty Is Necessary; (21) Cost and Crime of Credit; (22) A Real<br />
Co-operator; (25) Resolutions Adopted by A.F. of L.; (26) Factory Workers Co-operate!;<br />
(28) Do You Know About Co-operation in Europe?; (40) Have You a Committee on Educa<br />
tion and Recreation?; (44) What Is the Co-operative Movement?; (45) Schools and<br />
Stores; (47) A Man's 'Right to a Jab; (48) Tips to Co-operators; (49) Think It Over.<br />
MONTHLY PUBLICATIONS<br />
<strong>CO</strong>-<strong>OPERATION</strong>—(In bundle lots, $7.50 per hundred). Subscription, per year......... .$1.00<br />
HOME <strong>CO</strong>-OPERATOR, 4 pages ................................................ $1 per 100<br />
INTERNATIONAL <strong>CO</strong>-OPERATIVE BULLETIN (Pub. by The I. C. A.).......per year, $1.60<br />
BOOKS<br />
The following books are recommended as containing the best discussions of the modern<br />
Co-operative Movement. They may be ordered through The League:<br />
Bubnoff, J. B.: The Co-operative Movement in Russia, 1917................ ...........$156<br />
Faber, Harald: Co-operation in Danish Agriculture, 1918.............................. 2.75<br />
Flanagan, J. A.: Wholesale Co-operation in Scotland, 1920............................ 2.00<br />
Gebhard, Hannes: Co-operation in Finland, 1916...................................... 2.00<br />
Gide, C.: Consumers' Co-operative Societies, 1921...................................... 2.50<br />
Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, $2.00; paper<br />
bound ........................................................................... .60<br />
Howe, Fred C.: Denmark, a Co-operative Commonwealth, 1921......................... 2.00<br />
Maxwell, Wm.: History of Co-operation in Scotland, 1910.............................. 2.00<br />
Nicholson, Isa: Our Story ............................................................ 35<br />
Powell, G. Harold: Co-operation in Agriculture. Macmillan ........................... 1.50<br />
Redfern, Percy: The Story of the C. W. S............................................. 2.00<br />
Redfern, Percy: The Consumers' Place in Society, 1920............................... 1.00<br />
Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918...................... 1.50<br />
Smith-Gordon: Co-operation in Many Lands, 1920..................................... 1.50<br />
Sonnichsen, Albert: Consumers' Co-operation, 1919. Cloth bound, $1.75; paper bound... .75<br />
Stolinsky, A.: The Co-operative Movement. In Yiddish................................ 1.00<br />
Webb, B. and S.: The Consumers' Co-operative Movement, 1921........................ 5.09<br />
Webb, Catherine: Industrial Co-operation, 1917 ...................................... 1.50<br />
Woolf, Leonard: Co-operation and the Future of Industry ........................... 1.50<br />
Woolf, L.: Socialism and Co-ioperation ............................................... 1.50<br />
"The Co-operative Consumer" and "Co-operation," HI (1917), VI (1920), VII (1921).... 1.25<br />
Transactions of Second American Co-operative Convention, 1920....................... 1.00<br />
The People's Year Book, <strong>1922</strong>...................................................... .75<br />
(Ten cents postage should be added for books which cost more than $2.00, and five cents<br />
for the smaller books.)
THE <strong>CO</strong>-OPERATIVE LEAGUE<br />
(Member of The International Co-operative Alliance)<br />
167 West 12th Street, New York<br />
An educational organization for teaching the history, principles, methods and aims of toe<br />
Co-operative Movement and for the promotion of Co-operation In the United States.<br />
Join The League and thus help promote the educational work of the Co-operative<br />
Movement. Individual Membership, $1.00 a year. Subscribe for <strong>CO</strong>-OPEKATION,<br />
the Monthly Magazine of The League, and keep in touch with the Movement.<br />
Name.<br />
Address.<br />
Date....<br />
imd find $. $<br />
Co-operative Central Exchange<br />
Wholesale Grocers and Jobbers,<br />
Bekers<br />
We supply goods to Co-operative Societies ONLY<br />
We are owned and controlled by Co-operative<br />
Societies.<br />
We are organized to enable Co-operative Societies<br />
to do collectively what they cannot do Indi<br />
vidually.<br />
Co-operative Central Exchange<br />
Office*, Warehouses and Plant:<br />
Winter Street and Ogden Ave.,<br />
SUPERIOR, WIS.<br />
Co-operators' Ltd. Mutual Fire Insurance Co.<br />
Is now writing Insurance In state of Wisconsin.<br />
The Canadian Co-operator<br />
Brantford, Ontario,<br />
Canada<br />
The organ of the Canadian Co-opera<br />
tive Movement, owned by and con<br />
ducted under the auspice* of The<br />
Co-operative Union of Canada.<br />
Published monthly; 7Sc per annum<br />
MOVING PICTURES<br />
and<br />
Stereopticon Lectures<br />
may be rented from<br />
THE <strong>CO</strong>-OPERATIVE LEAGUE<br />
167 West 12th St., New York City<br />
1. "Son.* Examples of English Co-operation."<br />
Moving pictures of factory processes (two<br />
reels) ................................35.00<br />
2. "Co-operation in the United States."<br />
With 63 Stereopticon views ............83.00<br />
S. "The Co-operative Movement in Knsssla."<br />
With 36 colored Stereopticon views. ...$3.00<br />
fnr Subscription for <strong>CO</strong>-<strong>OPERATION</strong>, $1.00.<br />
lor MembersWp in The LEAGUE>' $ 1.00.<br />
Co-operation in Scotland<br />
In no part of the world Is Co-operation further<br />
developed, or more successfully practised than In<br />
Scotland. If you wish to keep In touch, read<br />
"The Scottish Co-operator"<br />
(Published Weekly)<br />
Subscription: Tear 12 ah.: half-year, 6 ah.<br />
Address, 119 Paisley Road,<br />
Glasgow, Scotland<br />
THE PRODUCER<br />
Issued Monthly Price 3d.<br />
If you -want to keep in touch with<br />
business, organization, administra<br />
tive affairs, and problems of the<br />
British Co-operative Movement,<br />
read THE PRODUCER.<br />
Publiahed hy<br />
Co-operative Wholesale Society, Inc.<br />
1 Balloon Street, Manchester.<br />
Post free 4 sh. «d. a year.<br />
The Trade and Technical Orean of British<br />
Co-operation.<br />
THE HOME <strong>CO</strong>-OPERATOR<br />
A four-page magazine for<br />
use in co-operative societies.<br />
Issued monthly, in bundles, $1 per hundred.<br />
Published by<br />
The Co-operative League<br />
Publishing Office, Willimantic, Conn. Al<br />
bert Sonnichsen, Managing Eitor.<br />
A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in vol<br />
untary association, produce and distribute for their own use the things they need<br />
Published monthly by The Co-operative League, 167 West Twelfth Street, New York City,<br />
J. P. Warbasse, Editor. Price, $1.00 a year. Entered as second class matter, December 19,<br />
1917, at the Post Office at New York, N. Y., under Abe Act of March 3, 1879.<br />
Vol. <strong>VIII</strong>, No. 9. SEPTEMBER, <strong>1922</strong> 10 Cents<br />
HOW TO RUN <strong>CO</strong>AL<br />
The coal in the United States is not<br />
mined for use; it is mined to make<br />
profits. There is a superstition without<br />
the slightest basis of fact, that coal<br />
is mined to be burned. As a result,<br />
the coal business is disorganized and<br />
frightfully inefficient. Here is a public<br />
need, and underlying the whole en<br />
terprise, from the mine to the stove,<br />
is the one question: How much can be<br />
gotten out of the consumer? The<br />
best statistics show that during the<br />
four years of the war one billion dol<br />
lars in profits were taken in this com<br />
modity from the people in the United<br />
States.<br />
There are essentially four plans<br />
by which the coal business can be<br />
run.<br />
The first is the present method for<br />
profit. This method absolutely laughs<br />
in our faces every time we call our<br />
selves a civilized people.<br />
The second method is by the po<br />
litical plan. This is also called gov<br />
ernment ownership and public owner<br />
ship. It is offered in many forms.<br />
The plan of the United Mine Workers<br />
called "nationalization" gives the ma<br />
jority control to the government,<br />
which makes it a political plan. Gov<br />
ernment ownership and control mean<br />
politics. What the government owns<br />
and controls the people do not own<br />
and control. The people should not<br />
VITAL ISSUES<br />
be confused with the government;<br />
they are two entirely different things.<br />
The third plan is the control of the<br />
mines by the workers. This is the<br />
syndicalist, industrial unionist, or<br />
profit-sharing producers' plan. It is<br />
not a radical plan because it will not<br />
work. And if it should work, it would<br />
in the end turn out to be the same as<br />
the present capitalistic scheme.<br />
There are all sorts of combinations<br />
of these four plans.<br />
If one would really sit down and<br />
think seriously about the matter he<br />
would have to come to the conclusion,<br />
that, if coal is to be mined and dis<br />
tributed for use, it must be run by<br />
the people who use it—the consum<br />
ers. And the problem will not be solved<br />
until the consumers do just this<br />
thing.<br />
The consumers, both commercial<br />
and domestic, should form local con<br />
sumers' associations. These should<br />
be upon the simple Rochdale basis.<br />
In cities, the organizations should be<br />
by wards or districts, in the country<br />
by counties. The local associations<br />
should be federated into state asso<br />
ciations, and the forty-eight state as<br />
sociations should be federated into a<br />
national organization.<br />
The distribution of coal by the lo<br />
cal associations should be begun by<br />
making contracts with local distribut<br />
ing agencies on a percentage of cost<br />
basis. Thus the local coal dealer
146 <strong>CO</strong>-OPEEATION<br />
would be employed to deliver coal.<br />
If satisfactory arrangements of this<br />
sort could not be made, capital would<br />
be raised by the Rochdale method to<br />
establish a coal yard of their own.<br />
Coal would be distributed at the cur<br />
rent retail price. Half of the sur<br />
plus-savings could be returned in<br />
cash to reduce the immediate cost to<br />
the consumer and half could be re<br />
turned in coal bonds. The funds re<br />
presented by the coal bonds would<br />
accumulate for the purpose of buy<br />
ing mines.<br />
The basis of this plan is that the<br />
consumers would ultimately run the<br />
coal industry. And they are the only<br />
people who want coal run for use.<br />
This plan would begin by taking the<br />
retailers' profit. Then would come<br />
the profit of the string of middle<br />
men ; and finally the mine owner's pro<br />
fit. This plan provides for erecting a<br />
sluice-way which turns the golden<br />
stream of profits from the pockets of<br />
dealers, traders, gamblers, and mono<br />
polists into the treasury of the con<br />
sumers. When once started out<br />
among the consumers, its natural<br />
tendency is to work toward the own<br />
ership of the mines as capital accum<br />
ulates. There is no limit to its pos<br />
sibilities. It is the practical and sen<br />
sible way to run coal.<br />
WORKERS UNITE AT THEIR PERIL<br />
Judge Rogers of Philadelphia is<br />
sued on August 1st an injunction<br />
against the Amalgamated Clothing<br />
Workers of America restraining them<br />
from speaking to non-union strike<br />
breakers. The judge stated in court<br />
that he intended to break up the or<br />
ganization because it creates strife<br />
in factories where the employees are<br />
contented. "It should be driven out<br />
of all existence as a menace to the<br />
nation," the New York Times, Au<br />
gust 2nd, reports the judge exclaim<br />
ing. One of the reactions following the<br />
war is the movement to destroy trade<br />
unions and deny working people the<br />
right to unite for their mutual pro<br />
tection. We shall see that it will go<br />
on, from bad to worse. The destruc<br />
tion of the trade unions has only just<br />
begun. Everybody is to be per<br />
mitted to organize but the workers.<br />
They are dangerous.<br />
Back before the civil war, when<br />
Kansas was controlled by slave-own<br />
ers, the legislature of that state<br />
passed a law providing imprisonment<br />
for not less than two years for any<br />
one who denied, by .spoken or written<br />
word, "the right of persons to hold<br />
slaves in this territory." The crim<br />
inals then were the people with moral<br />
courage enough to break the law. It<br />
matters little whether the economic<br />
interests that control a state derive<br />
their power from ownership of the<br />
bodies of human beings or of the re<br />
sources by which human beings keep<br />
their bodies alive, privilege will be<br />
found enacting laws that compel the<br />
people to be docile dupes or criminals<br />
—one or the other.<br />
One hundred years ago, labor in<br />
England was in a state of bestial slav<br />
ery. The law forbade workers to<br />
unite. Trade unionism was a crime.<br />
The British government sent thous<br />
ands of men to prison and to the pen<br />
al colonies for attempting to organize<br />
trade unions to better the conditions<br />
of the working people. Australia and<br />
New Zealand were founded by such<br />
criminals. When enough people had<br />
broken the law it was repealed, and<br />
trade unions became legalized. That<br />
is the natural course of events—pro<br />
gress by negation. If everybody<br />
obeyed every foolish law there would<br />
soon be a new race of sheep.<br />
Another court has recently grasped<br />
civilization by the throat and hurled<br />
it one hundred years back through<br />
the spaces of time. On July 22, at<br />
Charleston, West Virginia, three coal<br />
miners were sentencd to six months<br />
each in prison for violating an injunc<br />
tion by Federal Judge McClintic. The<br />
charge against them, made by the<br />
Loup Creek Coal Company, was that<br />
they were trying to organize the non<br />
union miners. Organizing a union<br />
was the crime.<br />
The owners of coal mines may or<br />
ganize to their hearts' content, and<br />
they may charge the public any price<br />
they wish for the coal that old Mother<br />
Nature put into the ground a hundred<br />
million years before there was a man<br />
on the face of the earth. But the men<br />
who go down into the dark caverns<br />
of the earth, and in the face of death,<br />
bring out this precious commodity,<br />
are denied by order of a United States<br />
judge from uniting as brothers to help<br />
one another protect themselves from<br />
some of the richest and most ruth<br />
less exploiters in the world. Now the<br />
government takes away from these<br />
poor miners this right which they se<br />
cured a hundred years ago, and which<br />
no civilization since that day has de<br />
nied them.<br />
We should be concerned for the min<br />
ers, their wives and children; but we<br />
should be concerned more for the rest<br />
of us. We should be concerned for<br />
the fact that a society that can take<br />
such a step is moving into a position<br />
in which it is in danger of breeding<br />
law-breakers. Such restraints of the<br />
common liberties mean that law<br />
breakers will inevitably arise, because<br />
enforcement of the law means slav<br />
ery as the fate of the working people.<br />
That is the extremity to which the<br />
rulers of things are driving the work<br />
ers in this year <strong>1922</strong>. They are cre<br />
ating a situation in which the work<br />
ing people are apt to develop sym<br />
pathy for the criminal and disrespect<br />
for the law.<br />
This tendency is one of the many<br />
Very obvious evidences of the decay<br />
of the present economic system. It<br />
behooves us to be busy building a<br />
better system to take its place, and<br />
to learn how to carry on our own af<br />
fairs in a free society without the aid<br />
of governments.<br />
"HONORS" THRUST UPON US<br />
An examination of the attitude<br />
of the British government toward<br />
the Co-operative Movement since<br />
1914 shows some striking facts.<br />
The Co-operative Movement dur<br />
ing the war was the one agency<br />
that stabilized prices and prevent<br />
ed profit business from being ab<br />
solute and undisputed master of<br />
the situation. As soon as it was re<br />
<strong>CO</strong>-OPEKATION 147<br />
vealed that the Co-operators stood<br />
between the people and the profi<br />
teers and prevented the latter from<br />
enjoying the full benefits of their<br />
war, the British government be<br />
came openly hostile to the Co-opera<br />
tors. It is naturally surprising to<br />
us on this side of the ocean to see<br />
the interest taken by our British co<br />
operative friends in the "honors" of<br />
knighthood which that same gov<br />
ernment now is wont to bestow.<br />
The other day Mr. Clynes, the<br />
leader of the Labor Party, in the<br />
course of debate on "honors," in<br />
the House of Commons, bewailed<br />
the fact that the Co-operators "never<br />
had received the same state recog<br />
nition that was given to others."<br />
It would seem that the Co-opera<br />
tors actually covet the chains that<br />
would bind them to the decaying<br />
institution which the Co-operative<br />
Movement would supplant. This is<br />
really the great British mystery.<br />
We have every respect for the<br />
British Co-operators. They have<br />
made the greatest contribution to<br />
the cause of social justice of any<br />
people in the world. We look to<br />
them as our teachers. This royalty<br />
business is simply a matter that we<br />
can not understand.<br />
It really seems to us that some<br />
day British Co-operators will come<br />
to the realization that the interests<br />
of Co-operation and the interests<br />
of the British government are ut<br />
terly opposed. The British Isles are<br />
not big enough to hold both. So<br />
long as the government is controlled<br />
by the profit system of business, it<br />
must be hostile to Co-operation. And<br />
when the profit system of business<br />
ceases to dominate the economic<br />
life of the British people there will<br />
be no "royal honors." But what is<br />
more important, when the co-opera<br />
tive societies become the dominant<br />
economic force, there will be no<br />
further need for a British govern<br />
ment.<br />
THE NEED OF BEAUTY<br />
Co-operators should create beau<br />
ty wherever they can. The people
148 <strong>CO</strong>-<strong>OPERATION</strong><br />
need beauty and have been de<br />
prived of it all too long. Unaes-<br />
thetic, dirty, inharmonious sur<br />
roundings are degrading. The<br />
places of beauty have been de<br />
bauched. The modern industrial<br />
center is commonly a scene without<br />
art. Show and cheapness are its<br />
aim. Beauty is introduced when it<br />
pays dividends.<br />
It is most encouraging to see the<br />
co-operative societies of Europe tak<br />
ing the lead in making their factories<br />
and places of business attractive. The<br />
Belgians set an example when the<br />
Society of Ghent employed the great<br />
Flemish artist von Boesbroeck on<br />
full time, established him in a studio<br />
on their premises and instructed him<br />
to create works of art, statuary and<br />
mural paintings for the enjoyment<br />
of the people.<br />
The splendid and airy factories of<br />
the German Wholesale are models of<br />
beauty in industrial plants. The<br />
flower boxes in the window's of<br />
the Scottish Wholesale's factories at<br />
Shieldhall give joy to all of the<br />
workers. Spacious grounds and ten<br />
nis courts about the C. W. S. biscuit<br />
factory at Crumpsall lighten the toil<br />
of the workers. The beautiful build<br />
ings of the Swiss Union give satisfac<br />
tion and encouragement to all Co-<br />
operators.<br />
It is a striking fact that when the<br />
people—what have been called "the<br />
dull and stupid mass" — take things<br />
in their own hands they display a<br />
satisfaction in having the beautiful<br />
things of which they had previously<br />
been deprived.<br />
We need in our American move<br />
ment to see the expression of the<br />
aesthetic. The co-operative building<br />
can have flower-boxes at the win<br />
dows. It can be at least clean and<br />
neat. And the co-operative hall can<br />
be made artistic. Beauty is one of<br />
the things that leads people onward<br />
and upward. It is in response to a<br />
natural desire which Co-operation<br />
can fulfill.<br />
THE <strong>CO</strong>AL MINE<br />
When the miners in England went<br />
on strike last year, they were called<br />
out of every mine in Great Britain<br />
except the Chilbottle mine, owned<br />
by the Co-operative Wholesale So-<br />
city. During the present coal crisis,<br />
the miners in the Chilbottle mine have<br />
had steady work with union condi<br />
tions and union wages. Now, while<br />
the other coal miners are resentful<br />
ly at work or are unemployed, we<br />
learn that the Chilbottle coal mine<br />
has given its workers two weeks' va<br />
cation with pay. Here is a coal<br />
mine owned by the coal consumers<br />
of England which is successfully<br />
operated, and in which the conflict<br />
between mine owners and workers<br />
does not exist. It should be enough<br />
to set people thinking.<br />
THREE REASONS<br />
There are three reasons for almost<br />
everything. If a man wants to do<br />
something bad he can scare up three<br />
reasons to justify it. And all good<br />
deeds have at least three good rea<br />
sons behind them. A Scotchman<br />
walking along the road was hailed by<br />
a neighbor standing at his gate. The<br />
neighbor asked him' to come over<br />
very close; and when he got very<br />
close, he asked him if he would not<br />
come in and have a "wee drop." "No,<br />
thank you, I must decline," said the<br />
first Scot. And in response to the<br />
expression of astonishment upon the<br />
face of the second, he proceeded:<br />
"For three reasons. First, I am on<br />
my way to attend a meeting of the<br />
Board at the Kirk. Second, I am a<br />
member of the Sons of Temperance.<br />
And third, I have just had a drink."<br />
There are three reasons why every<br />
body should be a Co-operator. First,<br />
it brings people together in brother<br />
hood irrespective of creed. Second,<br />
it gives them membership in the<br />
greatest voluntary fraternity in the<br />
world that aims toward justice, har<br />
mony, and education—and that means<br />
temperance. And third, it promotes<br />
plenty by enlarging the access to all<br />
of the good things of life. J. P. W.<br />
<strong>CO</strong>-<strong>OPERATION</strong><br />
SEEN HERE AND THERE<br />
By J. P. W.<br />
Bolton, England, is not one of the<br />
big cities, but its co-operative society<br />
has 50,000 members, representing<br />
more than half of the families in the<br />
city. It has steadily grown since<br />
1859, when it was founded. Long be<br />
fore that time efforts had been made<br />
to start .societies, but they had failed.<br />
Then the society that was to succeed<br />
got started; that seems to be the<br />
general history.<br />
There must have been something<br />
portentious about this society for it<br />
inspired confidence. One of the old<br />
pioneers is quoted in the History of<br />
the Society, as follows:<br />
"I remember the present Derby<br />
Street shop being opened, and the<br />
consternation it caused among<br />
the private shopkeepers. One<br />
old lady who kept a shop not far<br />
away, was made ill when she<br />
went to the door and saw the<br />
lights, and all the people<br />
streaming in."<br />
A continuous line of prosperity has<br />
been the lot of this society. Its busi<br />
ness in 1921 amounted to over $10,-<br />
000,000. Its business buildings are<br />
the finest in the city. Among these<br />
are a big central department store, 60<br />
grocery and provision stores, 30 meat<br />
shops and 12 boot and .shoe stores.<br />
The tailoring and clothing business is<br />
the largest in the city. There are<br />
also furniture, jewelry and: confec<br />
tionery stores, restaurants, a coal<br />
business, laundry, bakery, and cream<br />
ery.<br />
The bakery bakes 2,000,000 two-<br />
pound loaves of bread a year. The<br />
shoe department repairs 2,000 pairs<br />
of shoes a week. The milk depart<br />
ment began in 1886 with one wagon;<br />
now 30 wagons deliver 10,000 quarts<br />
daily.<br />
The Society owns three farms. It<br />
employs over 1,200 people. Some 110<br />
trucks and wagons are required in<br />
its delivery business. It owns 80<br />
railroad coal cars to carry coal from<br />
THE BOLTON SOCIETY<br />
149<br />
the mines to its coal sidings at Bol<br />
ton. It supplies its members with<br />
100,000 tons of coal a year. Over 40<br />
trucks are delivering coal all day.<br />
This department started with one de<br />
livery truck in 1892.<br />
The Society manufactures its own<br />
electricity at its own central power<br />
station. Last year it distributed<br />
$1,000,000 in cash savings-returns to<br />
its members. It has a $1,500,000 re<br />
serve fund invested in gilt-edged se<br />
curities.<br />
No wonder the profit-making<br />
tradesmen of Bolton have always<br />
been concerned about this society. In<br />
1895 a meeting to retail grocers of<br />
Bolton was held to establish an or<br />
ganization "to fight the co-operative<br />
stores." The chairman of the gro<br />
cers' meeting said: "This Co-opera<br />
tive Movement is taking away the<br />
prosperous business of grocers and<br />
provision dealers and leaving them<br />
mere skeletons of what they were.<br />
There is no use denying that the co<br />
operative .society does the largest<br />
business in Bolton. It does three-<br />
fourths of the trade in the town."<br />
A year later, at a meeting of The<br />
Bolton Grocers' Association the presi<br />
dent lamented that the grocery busi<br />
ness in Bolton was bad and they knew<br />
the reason why. "The reason was<br />
that they had to contend with a great<br />
monopoly which took most of the<br />
trade. It seemed to him that the<br />
town was under the cloud of this co<br />
operative society, and he thought it<br />
was a reflection upon th city govern<br />
ment that the co-operative society<br />
should have the credit of having a<br />
better library than the city itself.<br />
They often heard of people joining<br />
the co-operative society because of<br />
the great facilities for obtaining<br />
books, and he did not see why the<br />
city should come second to a trading<br />
society." Altogether, the grocers<br />
thought that Co-operation is a bad<br />
thing.
150 <strong>CO</strong>-<strong>OPERATION</strong><br />
The educational building of the<br />
Society is one of the most beautiful<br />
buildings in Bolton. The fire-proof<br />
library has 30,000 volumes. It has<br />
a reading room with desks for 130<br />
readers. It receives 140 papers and<br />
magazines and lends out 2,500 books<br />
a week.<br />
The Educational Department con<br />
ducts evening clasess and lectures, or<br />
ganizes picnics and excursions, main<br />
taining scholarships, carries on a<br />
men's guild and a women's guild, has<br />
a choral society, and spends an an<br />
nual appropriation of $15,000.<br />
The Society started its building de<br />
partment in 1868. The plan was to<br />
enable members to acquire their own<br />
homes. It lends money to members<br />
at 4 per cent interest in amounts up<br />
to 90 per cent of the value of the<br />
property. The interest rate was at<br />
first 6*4 per cent. This was found<br />
too high, and it was reduced to 5 per<br />
cent, and later to 4 per cent. The<br />
loans are to be paid back at the rate<br />
of two cents a month for every $5.00<br />
borrowed, thus giving the borrower<br />
twenty years to pay off the loan. This<br />
long term has not been necessary, as<br />
in nineteen cases out of twenty, the<br />
loan has been paid off in a quarter of<br />
that time.<br />
The system adopted by the Society<br />
has many advantages. Up until 1909,<br />
5,630 members of the Society had bor<br />
rowed money for acquiring homes and<br />
of these 3,182 had paid off their mort<br />
gages, the total advances amounting<br />
to $7,000,000. The Society began by<br />
purchasing cottages. Then vacant<br />
land was bought and houses built by<br />
the Society.<br />
Members were permitted to select<br />
their own plans and have the sort of<br />
house built that they wanted. They<br />
could buy a house already construct<br />
ed, or they could rent a house from<br />
the Society for any period of years<br />
up to 99 years. Property was pur<br />
chased in various sections of the<br />
town so that members would have a<br />
choice of location. The cottages<br />
built by the Society were in every re<br />
spect .superior to the general class of<br />
working men's houses.<br />
After the enterprise had been got<br />
ten under way, and plans and stand<br />
ards created it was found that build<br />
ing could be left to the owners them<br />
selves, and the House Building De<br />
partment soon developed into a House<br />
Purchase and Mortgage Department.<br />
This housing enterprise has had a<br />
pronounced effect upon the building<br />
trades. Houses are now built to suit<br />
the requirements of intended pur<br />
chasers, whereas formerly they were<br />
built in monotonous routine for rent<br />
ing purposes. The result is that fully<br />
one-fourth of the new residential<br />
house properties of Bolton is mort<br />
gaged to the co-operative society,<br />
and it has become the most important<br />
factor in the community in the de<br />
velopment of houses for the people.<br />
The important fact about this<br />
housing scheme is that most of the<br />
6,000 people who have gotten houses<br />
through The Bolton Society have used<br />
the "dividends" from the store to<br />
make the payments. Many a work<br />
ing man's family in Bolton have ac<br />
tually "eaten themselves into house<br />
and home."<br />
<strong>CO</strong>-<strong>OPERATION</strong> IN STAFFORD SPRINGS<br />
By C. L.<br />
Stafford Springs is a little Con<br />
necticut jtown of textile workers,<br />
mostly Italian. The Workmen's Co<br />
operative Union was organized by<br />
the local members of the Amalga<br />
mated Textile Workers in July,<br />
1920.<br />
At the begining the customary<br />
mistakes were made. An excessive<br />
price was paid for store, stock and<br />
fixtures; a poor manager was in<br />
stalled. The co-operative rapidly<br />
lost money.<br />
But these shrewd textile workers<br />
did not make the common mistake<br />
of muddling along for two or three<br />
years under poor management, un<br />
til three-fourths of their capital had<br />
been lost. Within four months they<br />
realized their mistakes, discharged<br />
the manager, affiliated with The Co<br />
operative League, put in The League<br />
control system and placed in charge<br />
of the store one Carl Campo, a tex<br />
tile operator, who had been a care<br />
ful and successful worker for the<br />
union. The store was cleaned up,<br />
the new accounting system put into<br />
practice, and two other valiant fight<br />
ers for the union were taken on as<br />
clerks in the co-operative.<br />
Today they are taking in nearly<br />
$1,000 a week. Two trucks are<br />
busy constantly covering the coun<br />
try within a five-mile radius of the<br />
little town. Of the 135 members<br />
more than 100 are Italian. They<br />
are still $300 short of the original<br />
$4,000 capital invested, but are rap<br />
idly making up for initial losses.<br />
Two per cent savings-returns are<br />
now being paid back regularly each<br />
quarter to purchasing members. But<br />
because these stalwart fighters for<br />
<strong>CO</strong>-<strong>OPERATION</strong> 151<br />
the co-operative commonwealth do<br />
not believe in giving capital any re<br />
ward whatever, no interest is given<br />
on the members' original invest<br />
ment.<br />
The little store in Stafford Springs<br />
is a model of cleanliness and neat<br />
ness. Thanks to the control system,<br />
any director can tell you at a glance<br />
precisely how the business stands.<br />
But more important than either is<br />
the quality of the leadership. The<br />
officers and directors are experi<br />
enced warriors in behalf of the tex<br />
tile workers of the district, fighters<br />
who have outgrown the habits of<br />
mere revolutionary soap-box orato<br />
ry, and are now down on the ground<br />
hard at work setting one of the cor<br />
nerstones of the Co-operative Com<br />
monwealth. After talking for a few<br />
moments with these men, it is easy<br />
to understand the neatness of the<br />
store and the precision in the keep<br />
ing of records. Thoroughgoing rad<br />
icalism of ideas and clean-cut effi<br />
ciency of method naturally belong<br />
together.<br />
THE E<strong>CO</strong>NOMICS OF THE "MANAGE X"<br />
A True Story of French Life<br />
In the smoking room of a cafe,<br />
where one afternoon in May I was<br />
rambling on discussing Co-operation,<br />
I noticed a familiar face of one whose<br />
name I could not remember. When<br />
I finished talking I started to go out<br />
of the room to enjoy a bit of sunshine<br />
when a man slapped me on the<br />
shoulder.<br />
"You do not remember me?"<br />
I hesitated a minute. But the box<br />
of memory opening, I replied, "Sure<br />
ly, X."<br />
We had been brought up together<br />
in the same village on the banks of<br />
the Seine, and we had been good com<br />
rades in school.<br />
"Are you a Co-operator, or do you<br />
eyer expect to become one," I asked<br />
him.<br />
By G. GABARDO<br />
Translated from "L'Action Co-opera tif"<br />
"No, I have simply dropped in to<br />
see you. I saw your name on the bill<br />
board."<br />
I thanked him, and said, "I am<br />
happy to see you, but I would be much<br />
happier if you would join the co<br />
operative."<br />
"We will ,see later," he said, "Will<br />
you give me the pleasure of drinking<br />
a cup of coffee with me at my home?<br />
I live but a few steps from here.<br />
At his home I found a neat but poor<br />
interior. We talked with his wife<br />
who was a hard worker. She was a<br />
candy-worker who earned about a<br />
franc and a half a day, in spite of<br />
the fact that she had five children at<br />
home. We talked about the co-opera<br />
tive in the village. They both said
152 <strong>CO</strong>-<strong>OPERATION</strong><br />
they would like to join but they had<br />
little money.<br />
"We have to buy on credit at the<br />
grocery and at the bakery. With five<br />
children and a father and mother to<br />
feed, we never can get enough ahead<br />
to save for a share. We know the ad<br />
vantages of Co-operation but what<br />
can we do? The co-operative does<br />
not give credit!"<br />
It was just at this time that on<br />
my return to Paris I had put the<br />
proposition up to our Central Com<br />
mittee to put aside some funds to loan<br />
to families who might use them to<br />
wrench themselves from the credit<br />
merchants. The funds were voted.<br />
My friend owed fifty francs to mer<br />
chants. This sum seemed enormous<br />
to him who only earned with his wife<br />
about five francs a day; but now he<br />
could borrow from the Central Co<br />
operative organization. He paid off<br />
this little debt with a loan which we<br />
made him. He borrowed 25 francs<br />
more and bought a share in the co<br />
operative society.<br />
The Central Committee had saved<br />
his household from the credit evil; the<br />
parasite of the poor.<br />
About two years later on a day<br />
when the co-operative society was<br />
distributing its savings to its mem<br />
bers I saw the wife of my friend come<br />
up to the office.<br />
"I have come," she .said, "to re<br />
turn what I owe. "Two years ago<br />
when I first met you, I had never<br />
saved a sou. My husband and I were<br />
always in debt. Today all is changed.<br />
See!"<br />
Then she showed me a paper which<br />
cancelled her debt to the Central Com<br />
mittee.<br />
"Not only," she said, "have we re<br />
SUBSCRIPTION <strong>CO</strong>NTEST<br />
The League offers a prize of a copy<br />
of "The Consumers' Co-operative<br />
Movement," by Sidney and Beatrice<br />
Webb, to the person who will send in<br />
the most subscriptions to <strong>CO</strong>-OPERA<br />
turned all we owe the society. But<br />
here is some real money, the first we<br />
have ever possessed. It is all due to<br />
you. How I thank you!"<br />
I replied, "It is due to Co-operation<br />
—not to me."<br />
This is a real story, not a fairy tale.<br />
The fairy Co-operation brought still<br />
further joys to this little household.<br />
I learned from my friend that they<br />
wisely allowed their savings to ac<br />
cumulate in their co-operative. This<br />
important reserve meant all to them<br />
for a possible "rainy day."<br />
Several years passed. One day I<br />
felt like having a look at my friend's<br />
account. His deposits were more<br />
than 300 francs.<br />
"Capitalist," I called him, the first<br />
time I met him face to face.<br />
"Yes," he replied, without a smile.<br />
"You cannot believe how this reserve<br />
fund has added to our happiness. Be<br />
fore I joined the co-operative I lived<br />
and worked from day to day with the<br />
continual fear of having to lose my<br />
job, of getting sick. I .said to myself,<br />
what may become of my wife and<br />
children. My life was truly poisoned<br />
with fear. Not only have I the com<br />
fort of my savings but I can enjoy<br />
daily many other things. And then<br />
my wife! She has many good qual<br />
ities, but she used to have, I must<br />
confess, one little fault. When she<br />
bought on credit, she did not count<br />
the cost. Now when she must pay<br />
cash, she gives much attention to the<br />
cost of things, and this is all good for<br />
pur household. And then, the sav<br />
ings that we have put aside have<br />
given her an ambitious feeling. She<br />
wants to economize and one day she<br />
says she even hopes that we shall own<br />
a home. When we do we will call it<br />
'The Villa Co-operative'."<br />
TION during the period July 1 to<br />
October 1. The contest is open to all.<br />
Sample copies of the magazine and<br />
subscription blanks will be sent on<br />
request to those desiring to enter the<br />
contest.<br />
<strong>CO</strong>-<strong>OPERATION</strong> 153<br />
FROM THE LEAGUE HEADQUARTERS<br />
<strong>CO</strong>-OPERATIVE <strong>CO</strong>NGRESS<br />
HEADQUARTERS<br />
The Third Congress of The League<br />
will be held in the auditorium of the<br />
Lexington Hotel, Michigan Boulevard<br />
at 22nd Street, Chicago, October<br />
26th, 27th and 28th. Arrangements<br />
have been made with the hotel<br />
for special convention rates, Hvhich<br />
will enable delegates to live at the<br />
hotel where the Congress takes place.<br />
The special rates for delegates are<br />
as follows:<br />
Two in room, without bath, $1.50<br />
per day each.<br />
Two in room, with bath, $2.50<br />
per day each.<br />
One in room, without bath, $2.00<br />
and $2.50 per day.<br />
One in room, with bath, $3.00,<br />
$3.50 and $4.00 per day.<br />
Delegates should send in their res<br />
ervations to the Lexington Hotel as<br />
early as possible, stating that they<br />
are attending the Congress of The<br />
League, in order to obtain special<br />
convention rates.<br />
<strong>CO</strong>MMITTEES AND TENTATIVE<br />
PROGRAM THIRD <strong>CO</strong>NGRESS<br />
The following committees have<br />
been appointed by the Executive<br />
Board, authorized by the Board of<br />
Directors, to prepare and present<br />
to the Congress formulated Reports:<br />
Accounting — A. W. Warinner<br />
(Kansas City, Mo.), Chairman; M.<br />
W. Cheel (New York City), A. S.<br />
Brewer (Hannibal, Mo.), F. L.<br />
Kerzie (Seattle, Wash.), D. E. Baird<br />
(East St. Louis, 111.), Martin Weber<br />
(Scranton, Pa.), H. E. Gaskill (Mid-<br />
dleport, Ohio), H. V. Nurni (Vir<br />
ginia, Minn.).<br />
Banking—(Co-operative and Labor<br />
Banks) — Walter F. McCaleb<br />
(Cleveland, Ohio), Chairman; F. C.<br />
Howe (Washington, D. C.), Caro D.<br />
Coombs (New York City), R. F.<br />
Bergengren (Boston, Mass.), R. B.<br />
Mclntyre (New York City), Ger<br />
trude M. Shelby (New York City),<br />
W. H. Johnston (Washington, D. C.).<br />
Competition— (How to Meet the<br />
Chain Stores and other Competi<br />
tors)—Ernest Aim (Chicago, 111.),<br />
Chairman; J. W. Snider (Villa<br />
Grove, 111.), O. Hirt (Erie, Pa.), Roy<br />
Shanks (Cleveland, O.), H. J. Toal<br />
(Milwaukee, Wis.)<br />
Credit Trading — (How to Avoid<br />
Credit Trading)—T. D. Stiles (Cres-<br />
son, Pa.), Chairman; W. D. Hontz<br />
(Lehighton, Pa.), L. LeLievre (Sault<br />
Ste Marie, Mich.), W. Niemela<br />
(Maynard, Mass.), A. W. Wariner<br />
(Kansas City, Mo.).<br />
Taxation of Co-operative Societies<br />
—(How to Handle the Matter of<br />
Taxes on Profit, Incomes and Sales)<br />
—H. Rappaport (New York City),<br />
Chairman; K. E. Grandahl (Fitch-<br />
burg, Mass.), O. L. Endres (Utica,<br />
N. Y.), Ernest Reynolds (Fargo,<br />
N. D.).<br />
Education—(How Best to Promote<br />
Co-operative Education; How to<br />
Organize Publicity; Newspapers,<br />
Labor, Farmer, etc.)—S. Alanne<br />
(Superior, Wis.), Chairman; J. L.<br />
Afros (Brooklyn, N. Y.), A. P.<br />
Bower (Reading, Pa.), J. P. Doyle<br />
(Mt. Vernon, 111.), W. C. Lansdon<br />
(Salina, Kans.), Cedric Long (New<br />
York), E. L. Harrison (Lexington,<br />
Ky.), Dr. G. L. Kennedy (Villa<br />
Grove, 111.), A. S. Coyle (Cleveland,<br />
Ohio).<br />
Spurious Co-operative Schemes —<br />
(How to Help Labor Avoid Spuri<br />
ous Co-operative Schemes)—A. P.<br />
Bower (Reading, Pa.), Chairman;<br />
J. A. Duncan (Seattle, Wash.),<br />
Stanley M. Gue (SariDiego, Calif.),<br />
J. Pilgrim (Binghamton, N. Y.), H.<br />
Rappaport (New York City), Thom<br />
as Bell (Los Angeles, Calif.), W.<br />
H. Stober (Clarkeston, Wash.),<br />
John H. Walker (Springfield, HI.),<br />
N. S. Bell (Tucumcari, N. M.), L. H.<br />
Collett (Riverbank, Calif.).<br />
Promotion of Co-operation by Trade<br />
Unions — John H. Walker (Spring<br />
field, 111.), Chairman, T. H. Bell<br />
(Los Angeles, Calif.), A. P. Bower<br />
(Reading, Pa.), J. W. Catley (Kansas<br />
City, Kans.), T. J. Donnelly (Colum-<br />
1
154<br />
<strong>CO</strong>-<strong>OPERATION</strong><br />
bus, Ohio), J. A. Duncan (Seattle,<br />
Wash.), Allan Haywood (Taylorville,<br />
111.), Wm. H. Johnston (Washington,<br />
D. C.), W. Robson (Detroit, Mich.),<br />
J. Schlossberg (New York City, N.<br />
Y.), G. W. Patterson (St. Louis, Mo.),<br />
R. H. Salter (Lewiston, Idaho).<br />
Legislative — Herschel H. Jones<br />
(New York City), Chairman, R. A.<br />
McGowan (Washington, D. C.), W. F.<br />
Seigenthaler (Nashville, Tenn.), Louis<br />
B. Blachly (New York City), Arthur<br />
LeSueur (St. Paul, Minn.), H. Rappa-<br />
port (New York City), W. G. Morse<br />
(New York City), E. P. Harris<br />
(Montclair, N. J.). This committee<br />
was created by the Second Co-oper<br />
ative Congress at Cincinnati and<br />
will report to the Third Congress<br />
at Chicago.<br />
Women's Guilds— (How to Interest<br />
and Organize the Women)—Mrs.<br />
Isabella Wilson (Perth Amboy, N. J.),<br />
Chairman, Mrs. D. R. Hooker<br />
(Baltimore, Md.), Mrs. M. W. Cheel<br />
(New York City), Miss Ernestine<br />
Friedmann (Bryn Mawr, Pa.), Mrs.<br />
Arthur LeSueur (St. Paul, Minn.),<br />
Mrs. Ed. Solem (Minneapolis,<br />
Minn.), Mrs. M. J. Radka (Bloom-<br />
ington, 111.), Mrs. J. N. Perkins<br />
(New York City).<br />
Agricultural Co-operators — (How<br />
may Farmers best be Organized as<br />
Consumers as well as Producers; How<br />
may the Work of the Farmers' Or<br />
ganizations best be Assisted by The<br />
League; How may the Farmer's Or<br />
ganizations Assist The League) —<br />
W. C. Lansdon (Salina, Kans.), Chair<br />
man, C. S. Barrett (Union City, Ga.),<br />
L. E. De Voss, (Kansas City, Kans.),<br />
J. P. Doyle (Mt. Vernon, 111.), A. S.<br />
Goss (Seattle, Wash.), E. L. Harri-<br />
son (Lexington, Ky.), L. S. Herron<br />
(Omaha, Neb.), A. E. Cotterill (Leon,<br />
Iowa).<br />
District Leagues—(How to Organ<br />
ize District Leagues; How may The<br />
Co-operative League best Work with<br />
and Serve the District Leagues; The<br />
Status of District Leagues) —L. H.<br />
Woodcock, New York City, N. Y.),<br />
Chairman, G. W. Patterson (St. Louis,<br />
Mo.), T. J. Donnelly (Columbus, O.),<br />
S. Alanne (Superior, Wis.), Kather-<br />
ine Bickley (Cleveland, 0.), W. Nie-<br />
mela (Maynard, Mass.), J. E. Robb<br />
(Cleveland, 0.), Henry W. Shelton<br />
(Winwood, Pa.), Geo. Savage (Ohio),<br />
Roy Shanks (Cleveland, 0.), H. J.<br />
Toal (Milwaukee, Wis.).<br />
Store Management — (Problems of<br />
Store Management) — Richard Hen-<br />
schke (Utica, N. Y.), Chairman, Er<br />
nest Aim (Chicago, 111.), Chas. Burt<br />
(Ishpeming, Mich.), J. Anderson<br />
(Rothsay, Minn.), K. E. Grandahl<br />
(Fitchburg, Mass.), L. LeLievre<br />
(Saulte Ste Marie, Mich), Wm. Lorenz<br />
(Mt. Olive, 111.), Peter Moerth (Staun-<br />
ton, 111.), C. C. Rakow (Bloomington,<br />
111.).<br />
Intercollegiate Co-operative Society<br />
—Rev. Joseph Reiner (Milwaukee,<br />
Wis.), Chairman, LeRoy Bowman<br />
(New York City, N. Y.), Calvin<br />
Bridges (Leonia, N. J.), August<br />
Brockland (St. Louis, Mo.), Gertrude<br />
Coit (New York City, N. Y.), Wm.<br />
Heilman (Flint, Mich.), G. N. Lauman<br />
(Ithaca, N. Y.), Catherine Lillie (Chi<br />
cago, 111.), Cedric Long (New York<br />
City, N. Y.), Guido Marx (Palo Alto,<br />
Cal.), Rev. R. A. McGowan (Wash<br />
ington, D. C.).<br />
Bakeries—A. Shiplacoff (Brooklyn,<br />
N. Y.), Chairman, Otto Arlund<br />
(Brooklyn, N. Y.), O. Endres (Utica,<br />
N. Y.), B. Levine (New Bedford,<br />
Mass.), J. Goldberg (Lynn, Mass.), S.<br />
Roffman (Paterson, N. J.).<br />
Milk Distribution—Ed. Solem (Min<br />
neapolis, Minn.), Chairman, 0. J. Ar-<br />
ness (Cleveland, 0.), K. E. Grandahl<br />
(Fitchburg, Mass.), W. Niemala<br />
(Maynard, Mass.), J. Liukku (Wauke-<br />
gan, Dl.).<br />
Restaurants — Miss Mary Arnold,<br />
Chairman (New York City, N. Y.),<br />
Otto Arlund (Brooklyn, N. Y.), B.<br />
Nelson (Chicago, 111.).<br />
Laundries—Louis B. Blachly (New<br />
York City, N. Y.), Chairman, J. G.<br />
Campbell (Lynn, Mass.), L. W. Lowry<br />
(Little Rock, Ark.), Chester Leighty<br />
(New York City, N. Y.), Cedric Long<br />
(New York City, N. Y.), M. A. Griffin<br />
(Seattle, Wash.).<br />
Coal Distribution — G. L. Kennedy<br />
(Villa Grove, 111.), Chairman, P.<br />
Moerth (Staunton, 111.), W. D. Hontz<br />
(Lehighton, Pa.), S. Goldberg (Wood-<br />
ridge, N. Y.).<br />
Housing — Daniel Hoan (Milwau<br />
kee, Wis.), Chairman, Ethel Arms<br />
(New York City, N. Y.), H. P. Vaughn<br />
(New York City, N. Y.), A. D. War-<br />
basse (Brooklyn, N. Y.), Edith R.<br />
May (Brookline, Mass.), C. E. Thar-<br />
aldsen (Evanston, DL), Grace Drake<br />
(New York City, N. Y.), Mrs. R. G.<br />
Stone (New York City, N. Y.), C. S.<br />
Stein (New York City, N. Y.).<br />
Insurance—(Co-operative Life, Fire<br />
and Liability Insurance) — Boris Fo-<br />
gelson (Woodridge, N. Y.), Chair<br />
man, G. B. L. Arner (New York City,<br />
N. Y.), Daniel Hoan (Milwaukee,<br />
Wis.), Ben L. Peters (Omaha, Neb.)<br />
Wholesaling—(Problems of Whole<br />
saling and Possibilities of Federation<br />
of District Wholesales)—John Num-<br />
mivuori (Superior, Wis.), Chairman,<br />
L. E. De Voss (Kansas City, Kans.),<br />
A. S. Goss (Seattle, Wash.), W. Nie-<br />
mela (Maynard, Mass.), T. D. Stiles<br />
(Cresson, Pa.), Robt. McKechan (East<br />
St. Louis, 111.), C. McCarthy (Oma<br />
ha, Neb.)<br />
Constitution of The League—Agnes<br />
D. Warbasse (Brooklyn, N. Y.),<br />
Chairman, S. Alanne (Superior, Wis.),<br />
John F. McNamee (Cleveland, 0.),<br />
C. F. Duncan (Erwin, Tenn.), W. H.<br />
Closser (Saulte Ste. Marie, Mich.),<br />
L. S. Herron (Omaha, Neb.).<br />
Local Arrangements — John Ash-<br />
croft (Chicago, Dl.), Chairman, J.<br />
Doornheim, Mrs. Anna K. Hulburd,<br />
Peter Kramer, M. E. Shaver, A. V.<br />
Vesely, Mrs. Dora Nordboe, H. G.<br />
Schmidt. ______<br />
ADVICE TO STORE MANAGERS<br />
Inventory Taking<br />
A semi-annual audit is not suffi<br />
cient. It should be at least quarter<br />
ly; and with a new manager, once a<br />
month.<br />
Inventory taking is very impor<br />
tant. Do not estimate anything.<br />
Never figure on prices of a pre<br />
vious date, but at the present<br />
market rate. Use loose leaf sheets,<br />
which can be bound later. A<br />
proper arrangement of goods plain<br />
ly tagged is necessary. Do not buncli<br />
goods and place a lump value on<br />
<strong>CO</strong>-<strong>OPERATION</strong> 155<br />
them. The manager should not do<br />
the work alone. Several of the di<br />
rectors can do it quicker by working<br />
in pairs on a holiday when the store<br />
is closed. If bins are known to con<br />
tain a certain amount of bulk goods<br />
when full, the amount at inventory<br />
taking may be arrived at by meas<br />
urement. (See The League's spe<br />
cial sheets for taking inventory at<br />
selling price). Wholesalers furnish<br />
printed inventory sheets alphabetic<br />
ally arranged, which are useful for<br />
taking inventory at wholesale prices.<br />
Control of Stock<br />
Remember, a cash register does<br />
not control the business in the least.<br />
It simply keeps a record of the<br />
money received and is a safer re<br />
pository during the day than a<br />
drawer under the counter. Each<br />
night the cash should be deposited<br />
in the bank, and the cash register<br />
totalizer read by the treasurer or<br />
secretary in the presence of the<br />
manager, before setting it again.<br />
The control of stock can only be<br />
ascertained by using record sheets<br />
daily for all goods received, return<br />
ed, sold, shortaged, destroyed; and<br />
The League's "Control System" is<br />
recommended for this purpose.<br />
It is necessary to keep careful<br />
records and have them signed by<br />
the manager, turned over to the<br />
Control Committee, who check them<br />
up with the invoices and enter the<br />
week's summary on separate loose<br />
leaf sheets provided for that pur<br />
pose.<br />
Keep buying and management ex<br />
penses always separate. It is neces<br />
sary to show percentages of various<br />
overhead expenses. The manager<br />
should be required to furnish the<br />
information which will enable the<br />
directors to make an understand<br />
able report to the members each<br />
month. (See "Model Report.")<br />
In a small store which pays its<br />
bills promptly each week, a simple<br />
columnar cash book like "The<br />
Greenwood Record Book," may be<br />
used for book-keeping purposes. In<br />
a store where credit is given and re-
156<br />
ceived a double entry system is ab<br />
solutely essential. The Lague has<br />
several systems to suggest.<br />
The manager ordinarily should<br />
not be required to keep books. It<br />
is not his job, but in many small<br />
stores he is often the only one capa<br />
ble of doing so. When this is the<br />
case, a monthly audit by a commit<br />
tee of three should be demanded by<br />
the membership. Once a year an<br />
expert accountant should be re<br />
quired to audit the books also. Most<br />
managers are honest, but the direc<br />
tors should control them neverthe<br />
less; and the honest manager will<br />
prefer to be checked up regularly.<br />
Once a month the directors may ask<br />
for a statement from the whole<br />
salers to be sure no bills have been<br />
mislaid or kept back. This is some<br />
times done, waiting for a more pros<br />
perous time to present the bills, but<br />
it is dangerous and misleading.<br />
In checking up a manager's ac<br />
counts, if a shortage is discovered<br />
and the manager cannot explain, it<br />
is better for him to resign or be dis<br />
missed than to go on from month<br />
to month until the difference be<br />
comes large. Never try to cover<br />
operating expenses or losses by<br />
using capital. Compare average<br />
operating expenses constantly with<br />
sales. If the operating expense is<br />
10 per cent then you must add 10<br />
per cent plus the surplus-saving<br />
(profit) per cent to the wholesale<br />
price.<br />
Credit<br />
A man who owns his own busi<br />
ness can decide to whom to give<br />
credit, but in a co-operative store it<br />
is hard to discriminate, therefore<br />
the better policy is STRICTLY<br />
CASH, even though you lose some<br />
customers thereby. In no case<br />
should the co-operative store extend<br />
credit to non-members, and only in<br />
cases of great need, should credit<br />
be allowed up to one-half of the<br />
amount of share capital paid in by<br />
a member. Where credit is estab<br />
lished as a custom in a town, and<br />
the co-operative store has been do<br />
ing a credit business too, a cam<br />
<strong>CO</strong>-<strong>OPERATION</strong><br />
paign of education should be started<br />
to change the system. Coupon<br />
books are sometimes used, where<br />
the members pay in advance for ten<br />
or twenty dollars worth of goods,<br />
and the coupons are exchanged for<br />
the goods either at the store or when<br />
the deliveries are made. Account<br />
books may be used instead of cou<br />
pon books, and indelible notations<br />
made to be subtracted from the ori<br />
ginal amount paid in, until the<br />
total is exhausted. This obviates<br />
the necessity of paying cash to de<br />
livery clerks, and also has the added<br />
advantage of supplying the store<br />
with more advance working capi<br />
tal. Most people can arrange to de<br />
posit ten or twenty dollars in ad<br />
vance if they try. (See "How to<br />
Start and Run a Co-operative<br />
Store.") ______<br />
MATERIAL FOR POSTERS<br />
M. E. Shaver sends in the follow<br />
ing suggestions for store posters:<br />
"The co-operative ideal is pro<br />
duction and distribution for USE in<br />
stead of for PROFIT."<br />
"The Co-operative Movement is<br />
the only democratic movement with<br />
economic power."<br />
"Join the Co-operators and save<br />
the unearned profit."<br />
"Why work so hard and give part<br />
of your pay to others in the form of<br />
unearned profits. Join the1 co-oper<br />
ative and save it."<br />
"The Co-operative Movement is<br />
of the people, by the the people and<br />
for the people, while private busi<br />
ness is of the capitalist, by the capi<br />
talist and for the capitalist."<br />
"Join the Union of Consumers,<br />
and free yourselves from the profit<br />
system and the profiteers that go<br />
with it."<br />
In the center of the busy section<br />
of the city of Glasgow, one is sud<br />
denly confronted by the following<br />
words .painted in huge letters on the<br />
side of a building:<br />
"Co-operation helps you and<br />
yours. Join the store nearest your<br />
door."<br />
f f<br />
<strong>CO</strong>-<strong>OPERATION</strong> 157<br />
NEWS AND <strong>CO</strong>MMENT<br />
<strong>CO</strong>NVENTION OHIO DISTRICT<br />
<strong>CO</strong>-OPERATIVE LEAGUE<br />
The second annual convention of<br />
the Ohio District League was held<br />
at Columbus on June 24, <strong>1922</strong>.<br />
There was a just appraisal of Co<br />
operation, its present status, and its<br />
possibilities. Each delegate spoke<br />
and acted with understanding. Cold<br />
business problems were met and<br />
dealt with, while at the same time<br />
the ideals and faith in the Move<br />
ment was revealed in every action.<br />
The spirit of the meeting was that,<br />
"Co-operation is right and must<br />
go forward." Delegates counselled to<br />
build substantially. It was pointed<br />
out that the British were three years<br />
getting their buying agency estab<br />
lished. It was shown that the ground<br />
should be carefully broken and fer<br />
tilized with co-operative education<br />
before the sprouts of business enter<br />
prises could be expected to survive.<br />
Labor delegates representing<br />
trade unions were unanimous in<br />
their opinion that Co-operation was<br />
a part of the labor movement, that<br />
it had come to stay, and was the in<br />
telligent method of fighting the in<br />
justices imposed upon the laboring<br />
masses. They maintained that the<br />
trades union movement, by its very<br />
nature, was a defensive organiza<br />
tion and at the present time was be<br />
ing forced to retreat and retrench,<br />
while Co-operation showed the way<br />
to a forward movement.<br />
President Thos. J. Donnelly<br />
opened the convention with an ad<br />
dress, dealing with the need for Co<br />
operation. Vice-president, G. W. Sav<br />
age stated that the policy of the<br />
Ohio miners was for Co-operation<br />
and that as soon as their strike was<br />
settled they would be in a position<br />
to lend more aid to the movement,<br />
Secretary-treasurer John F. McNa-<br />
mee reported that letters and bulle<br />
tins had been sent to all trade<br />
unions and co-operatives, soliciting<br />
support to the Ohio district, he re<br />
ported funds in the treasury.<br />
The convention endorsed the ef<br />
forts of the officers to raise funds<br />
for the purpose of placing an audi<br />
tor and advisor in the district and<br />
instructed them to continue the ap<br />
peals to the co-operatives, and the<br />
State Federation of Labor, and also<br />
to establish a central buying agency<br />
as soon as practical. The officers<br />
were instructed to arrange for the<br />
introduction of The Co-operative<br />
League's Model Co-operative Law<br />
in the Ohio Assembly and to work<br />
for its passage. The Secretary-<br />
treasurer was instructed to issue an<br />
educational bulletin monthly to the<br />
co-operatives and others in sympa<br />
thy with the Movement.<br />
Delegate from the Cleveland Fed<br />
eration of Labor, Henry W. Raisse,<br />
advised the convention of a plan<br />
that was being worked out in his<br />
city. The federation had selected<br />
a committee to meet with a like<br />
committee from the1 Cleveland Dis<br />
trict Co-operative League to handle<br />
and present Co-operation to the la<br />
bor movement of Cleveland. A let<br />
ter of greetings was read from The<br />
Co-operative League of the United<br />
States of America, and representation<br />
of the Ohio District at the Third Na<br />
tional Congress was left in the hands<br />
of the officers. The board of direc<br />
tors were re-elected and the vacan<br />
cy of Brother E. Corrigan, deceased,<br />
was left to be filled by the officers<br />
selecting a representative from the<br />
Brotherhood of Locomotive Engi<br />
neers Co-operative National Bank.<br />
The time and place of the next con<br />
vention was referred to the incom<br />
ing board of directors. The offi<br />
cers for the ensuing year are:<br />
President, Thos. J. Donnelly,<br />
Ferris Building, Columbus, Ohio;<br />
Vice-president, G. W. Savage, Rug-<br />
gery Building, Columbus, Ohio; Sec<br />
retary-treasurer, John F. McNamee,<br />
2112 East 46th Street, Columbus,<br />
Ohio; Members: E. L. Kitchens,<br />
3918 Regent Avenue, Cincinnati Ohio;<br />
R. G. Donaldson, Crestline, Ohio; F.<br />
H. Disbennett, 503 West Church
158<br />
Street, Orrville, Ohio; F. H. Johnston,<br />
Middleport, Ohio; J. F. Huron, Dillon-<br />
vale, Ohio. Vacancy to be filled by<br />
Board.<br />
The Ohio District Co-operative<br />
League is affiliated with The Co<br />
operative League.<br />
PRESIDENT'S OPENING ADDRESS<br />
By THOS. J. DONNELLY<br />
Fellow Co-operators, Ladies and<br />
Gentlemen: I am pleased to greet<br />
you as delegates and visitors to the<br />
Second Annual Convention of the<br />
Ohio District Co-operative League.<br />
We are meeting in Columbus this<br />
year to review the progress made<br />
and to counsel together over prob<br />
lems confronting the Co-operative<br />
Movement. May our convention be<br />
a success from both a business and<br />
fraternal standpoint.<br />
The Co-operative Movement and<br />
the labor movement should go hand<br />
in hand. Labor organizes upon the<br />
economic field into the trade union<br />
for the purpose of collective bar<br />
gaining as to production on the part<br />
of labor. The Co-operative Move<br />
ment is an effort to bring about col<br />
lective action first as to consump<br />
tion and later as to production. Ev<br />
ery union man should be a Co-oper<br />
ator and every Co-operator should<br />
endeavor to build up his union.<br />
There are two processes by which<br />
the worker is victimized. One—<br />
when the worker takes a job he sub<br />
mits to work for the price and un<br />
der the conditions agreed upon by<br />
his employer. The wage that he<br />
receives determines his standard of<br />
living. The last half century has<br />
meant some remarkable progress<br />
for the workers as a result of his<br />
collective bargaining.<br />
Nevertheless, the employer still<br />
controls the job and says whether<br />
the worker shall work or not work,<br />
and by the virtue of such control,<br />
determines the kind of a living the<br />
worker s'hall have, the kind of a<br />
roof that shall be over his head, and<br />
the kind of clothes he shall wear;<br />
yes, even, the kind of an education,<br />
if any, that the children of the<br />
<strong>CO</strong>-<strong>OPERATION</strong><br />
worker shall have. Thus the work<br />
er is economically dependent upon<br />
the owner of the job.<br />
In this process he has neither<br />
voice nor vote, he is without repre<br />
sentation whatsoever upon the in<br />
dustrial boards that control indus<br />
try and the jobs therein. His only<br />
hope of self preservation, in this<br />
respect, is through the recogniza-<br />
tion gained by his trade union.<br />
The worker is victimized in just<br />
the proportion that he is dependent.<br />
If his union is strong and he is well<br />
organized 'he gains more concessions<br />
than if he is poorly organized; he is<br />
forced to work for as small a wage<br />
as possible, and that wage must rep<br />
resent a profit to his employer or<br />
he does not work.<br />
Now the other process. Wages<br />
mean just what they will buy, no<br />
more, no less. After the struggle of<br />
the trade union for nr-.ora v/ages,<br />
sometimes bitter and fierce, the work<br />
er finds that the increase in income<br />
does not compare favorably with the<br />
increase in the cost of the things that<br />
he must buy to live. And, in this<br />
phase he has neither voice nor vote,<br />
he must pay the price that is asked.<br />
He is taxed without representation.<br />
Our forefathers declared against this<br />
and gave birth to our nation. It re<br />
mains to be seen whether we shall<br />
maintain the traditions of our fore<br />
fathers or submit to a business des<br />
potism, ruled by commercial and in<br />
dustrial kings and barons.<br />
Of course, it is important that we<br />
vote right. It is better to have our<br />
friends in the political places than<br />
our avowed enemies, but behind all<br />
political oppression stands the throne<br />
of the business oligarchy, and as long<br />
as the throne remains powerful the<br />
oppressions will continue. (Weaken<br />
the throne and you smite political<br />
corruption. Workers all over the<br />
world have grasped this situation, and<br />
in many places are dealing some very<br />
effective blows. In Great Britain the<br />
workers have a voice and a vote in<br />
better than one-third of the business<br />
transacted in that country. We should<br />
do even better here.<br />
There are in Ohio .some seventy<br />
Rochdale co-operative societies which<br />
have as their goal the placing of busi<br />
ness in the hands of the people on a<br />
democratic basis, and the success of<br />
which will mean death to the business<br />
oligarchy. Co-operation simply means<br />
the people getting together and run<br />
ning their own business. The prin<br />
ciple is right and is sure to succeed.<br />
The call to this Convention :em-<br />
bodies some of our immediate im<br />
portant steps, and if we arrange to<br />
carry out all of these we shall not<br />
have met in vain. However, it is al<br />
ways good for us to get together and<br />
exchange experiences. Your officers<br />
have endeavored in every way to pro<br />
mote your movement and to bring<br />
it more forcibly to the attention of<br />
labor.<br />
Your Secretary-treasurer, Brother<br />
McNamee, will have a report to sub<br />
mit to you and with it will be some<br />
of the recommendations of your of<br />
ficers. It is hoped that you will be<br />
able to act upon the recommendations<br />
in such a manner that your officers<br />
may be able to advance the Co<br />
operative Movement in Ohio. In<br />
closing, permit me again to extend<br />
greetings to you upon behalf of the<br />
officers of the Ohio District Co-opera<br />
tive League and wish you a pleasant<br />
and instructive day in Columbus.<br />
NEBRASKA SURVEY<br />
From the "Nebraska Union Farm<br />
er," we learn the result of the third<br />
annual survey of co-operative socie<br />
ties in Nebraska which has just been<br />
published as Bulletin No. 118 by the<br />
Nebraska State Department of Agri<br />
culture. In gathering and compiling<br />
the data, the Department of Agricul<br />
ture was assisted by the College of<br />
Business Administration of the Uni<br />
versity of Nebraska. The data were<br />
obtained by means of questionnaires<br />
sent out by mail.<br />
Of 281 returns received, 230 were<br />
considered complete enough to use.<br />
The survey, therefore, is incomplete.<br />
The records of the Secretary of State<br />
show that there are in the state 645<br />
<strong>CO</strong>-<strong>OPERATION</strong> 159<br />
co-operative associations with capi<br />
tal stock, which, of course does not<br />
include shipping associations without<br />
capital stock and farmers' straight<br />
stock corporations.<br />
The sales of 221 companies that<br />
reported on this item totaled $39,-<br />
882,512.00 in 1921. This figure has<br />
been published by newspapers as re<br />
presenting the sales of Nebraska co<br />
operatives last year. 'Considering<br />
that the survey covered only about<br />
one-third of the co-operative associa<br />
tions of the state, it will be seen that<br />
this figure is way below the real total.<br />
ENGINEERS' BANK PAYS SAVINGS<br />
RETURNS<br />
The Brotherhood of Locomotive<br />
Engineers Co-operative National Bank<br />
of Cleveland has mailed out "savings<br />
dividend" checks to 9,000 depositors.<br />
This is in addition to the regular 4<br />
per cent interest, compounded every<br />
quarter from date of deposit, a fur<br />
ther dividend of one-half of one per<br />
cent for the past six months, or at<br />
the rate of 1 per cent a year. The<br />
total return to depositors is in excess<br />
of 5 per cent, because of the pro<br />
vision for compound quarterly inter<br />
est. Shareholders are receiving 6<br />
per cent on their investment.<br />
The Brotherhood o f Locomotive<br />
Engineers Co-operative National Bank<br />
was the first national bank in the<br />
United States to share its earnings<br />
with depositors. The resources of<br />
the bank have increased in the 19<br />
months of its existence from $653,-<br />
000 to $15,000,000, and are growing.<br />
NORTHERN STATES <strong>CO</strong>-OPERA<br />
TIVE LEAGUE<br />
The Executive Board of the North<br />
ern States League has held regular<br />
monthly meetings at Superior, Wis<br />
consin. Plans were made for a cam<br />
paign of education to be conducted<br />
by speakers visiting the various so<br />
cieties, by means of summer schools<br />
and by sending out literature. A cen<br />
tralized auditing service is being ar<br />
ranged for, and the publication of a
160<br />
year-book is under consideration.<br />
Mrs. Solem of Minneapolis has spoken<br />
at two meetings under the auspices<br />
of the League, Mr. Sondergaard of<br />
Minneapolis has spoken once, and Mr.<br />
Alanne has spoken at several meet<br />
ings. The annual convention will be<br />
held at Minneapolis in October.<br />
WAUKEGAN OPENS NEW DAIRY<br />
The Co-operative Trading Com<br />
pany, of Waukegan, Illinois, has open<br />
ed up a new dairy plant, in response<br />
4o the growing demand of its dairy<br />
business. It took five months to com<br />
plete the new home of the co-opera<br />
tive dairy, which is patronized by one-<br />
fourth of the people of Waukegan.<br />
This co-operative has a membership<br />
Of nearly 700 consumers. Savings-re<br />
turns of 8 per cent have been paid<br />
on milk and cream purchasers, though<br />
the prices charged by the co-opera<br />
tive dairy are two cents a quart lower<br />
than they are in Chicago.<br />
In addition to the thriving milk<br />
business, this society also supplies<br />
its patrons with groceries and meats.<br />
The turn-over, according to the latest<br />
report last year, was in excess of<br />
$150,000 a year.<br />
The Co-operative Trading Com<br />
pany is operated on the Rochdale<br />
plan. It makes liberal allotments to<br />
the educational fund, distributes the<br />
Associated Magazine and is affiliated<br />
with The League.<br />
MT. OLIVE SOCIETY<br />
The mine strike has had no ap<br />
parent effect upon the Mt. Olive Co<br />
operative Society, of Mt. Olive, Illi<br />
nois, even though this society is situ<br />
ated in the coal-mining district and<br />
has a membership of miners. The"<br />
last semi-annual report shows that<br />
pavings of $925 were made on the<br />
sales of $37,000. The surplus-sav<br />
ings were distributed as a 2 per cent<br />
return pn purchases, and 3 per cent<br />
was paid for loan and share capital.<br />
The savings made by this .society,<br />
even in the present critical times,<br />
amounted to 11 per cent of the share<br />
<strong>CO</strong>-<strong>OPERATION</strong><br />
and loan capital invested. This does<br />
not take into account the savings<br />
made by members who received trad<br />
ing stamps, which are redeemable at<br />
2 per cent cash, or about 2^ per cent<br />
in trade. The Mt. Olive Society has<br />
a membership of 200. There has been<br />
no loss in membership in spite of the<br />
strike.<br />
FAKE "<strong>CO</strong>-OPERATIVES" IN LOS<br />
ANGELES<br />
The working people of Los Angeles<br />
have been swindled by a scheme for<br />
organizing "co-operative industries,"<br />
according to William Steineck, deputy<br />
commissioner in charge of the Bur<br />
eau of Labor Statistics of California.<br />
The State Bureau has discovered<br />
that twenty-five firms in Los Angeles<br />
participate in these schemes to de<br />
fraud the wage earners. One of the<br />
cases now being prosecuted is against<br />
the United Cafeteria. The charge<br />
against this concern, which recently<br />
started activities as a "co-operative<br />
cafeteria operated by employes," is<br />
that the heads of the concern sold<br />
169 jobs for an average of between<br />
$300 and $500 each, and employed<br />
only sixty of the job purchasers.<br />
FARMERS BUY TOGETHER<br />
The number of farms in the United<br />
States reporting co-operative pur<br />
chasing of farm supplies through<br />
farmers' organizations was 329,449,<br />
or 5.1 per cent of all farms. In six<br />
states, co-operative purchasing of<br />
farm supplies was reported by over<br />
20,000 farms, as follows: Iowa, 32,-<br />
530; Kansas, 32,321; Minnesota, 29,-<br />
611; Nebraska, 27,335; Wisconsin,<br />
21,792, and Ohio, 21,250. Important<br />
items purchased co-operatively were<br />
fertilizer, feed, binder twine, spray<br />
ing materials, coal crates, boxes, etc.<br />
BRITISH PROGRESS<br />
The progress of the Co-operative<br />
Movement during 1921 was reported<br />
to the Brighton congress by the Sta<br />
tistical Department of the Co-opera-<br />
tive Union. The report is a summary<br />
of the position reached by the Co<br />
operative Movement at the end of<br />
1921. On that date it is estimated<br />
that there were 4,526,475 members<br />
of co-operative societies in the United<br />
Kingdom or 21,623 more than there<br />
were at the end of 1920. Thus, des<br />
pite unemployment and bad trade,<br />
the membership of co-operative so<br />
cieties continued to grow throughout<br />
the past year, and there are more<br />
Co-operators today than ever before.<br />
At the end of 1921, these Co-opera<br />
tors possessed share capital amount<br />
ing to £74,190,375, while the reserve<br />
funds of their societies amounted to<br />
£5,238,080. They owned land and<br />
buildings valued at over £28,000,000,<br />
and trade stocks worth more than<br />
£25,000,000. Upwards of 130,000<br />
persons were employed by the retail<br />
.societies, and these persons received<br />
wages in 1921 amounting in the ag<br />
gregate to £21,000,000. The sales of<br />
retail co-operative societies in 1921,<br />
amount to £219,000,000, and on this<br />
trade a surplus-saving of nearly £18,-<br />
000,000 was realized. Of this sur<br />
plus-saving nearly £180,000 was spent<br />
on education, while more than £136,-<br />
000 was devoted to charitable pur<br />
poses. These figures speak of<br />
strength, stability, thrift and fore<br />
sight, and demonstrate what can be<br />
done by co-operative industry.<br />
CHEAP <strong>CO</strong>AL<br />
The approach to the solution of<br />
the coal problem is being made by<br />
the Co-operative Society. Already<br />
a number of societies in this coun<br />
try are distributing coal to their<br />
members. Some have developed the<br />
largest coal business in their re<br />
spective towns. In Europe this is<br />
becoming the general practice. One<br />
result is that the price of coal is<br />
reduced. Take for example the<br />
Progress Society in Scotland, which<br />
created a disturbance a short time<br />
ago by selling the cheapest loaf of<br />
bread in Scotland. It is a "non-<br />
dividend" society. Now it has put<br />
down the price of coal and all of<br />
<strong>CO</strong>-<strong>OPERATION</strong> 161<br />
the coal dealers in Glasgow are up<br />
in arms at such an atrocity. How<br />
ever, there are societies which sell<br />
coal at nearly as low a price and<br />
then make for their members a sav<br />
ings return which brings the cost<br />
even lower.<br />
HEALTH PROTECTION IN<br />
MADRID<br />
Since 1904, the workers of Ma<br />
drid, Spain, have maintained a<br />
health department in the co-opera<br />
tive .society (La Mutualidad Obre-<br />
ra). This provides complete medi<br />
cal service for eight dollars a year<br />
for each member. There are<br />
seven clinic-hospitals in different<br />
parts of the city, each equipped<br />
with about ten beds, an up-to-date<br />
operating room, a dental clinic, con<br />
sulting rooms, an immaculate tiled<br />
kitchen, and a garden for convales<br />
cents. Each has a staff of physi<br />
cians, surgeons and nurses. The<br />
drug store connected with each hos<br />
pital furnishes medicines free of<br />
charge to the members, and sells to<br />
non-members at the current price.<br />
The co-operative society supplies the<br />
hospitals with provisions. Each<br />
member pays 66 cents a month to<br />
the society. For this, besides the<br />
benefits of membership, he receives<br />
free medical service, major opera<br />
tions, consultation and advice at any<br />
A FRENCH WEDDING GIFT<br />
The Co-operative Union at Amiens<br />
has an insurance department which<br />
serves its members by alloting dif<br />
ferent forms of (indemnities—for<br />
deaths, sickness, accidents and for<br />
births. In addition, quite out of the<br />
ordinary, it now has set aside a fund<br />
for all married couples. It awards<br />
to the bride and groom of its co<br />
operative members a share of 25<br />
francs. This wedding present from<br />
the Union is not only a welcome gift<br />
to the young menage but it calls at<br />
tention to the youthful couple that<br />
they should interest themselves, as<br />
have their parents, in their co-opera<br />
tive society.
162 <strong>CO</strong>-<strong>OPERATION</strong><br />
SOCIETIES SHOULD FEDERATE<br />
You will perhaps have noted in a recent<br />
issue of our magazine that both the pro<br />
vincial farmers' organizations in Canada<br />
conducting chain stores made very heavy<br />
losses last year. In both cases there is<br />
a strong inside agitation for decentraliza<br />
tion and as to which this union has been<br />
consulted, but we do not wish to become<br />
involved in any domestic disputes, although<br />
anxious to be of service if decentralization<br />
is decided upon.<br />
Our localized societies, however, estab<br />
lished in Ontario, have been going through<br />
a serious crisis, and some have gone under.<br />
In nearly every case, however, it is due to<br />
failure to keep this union informed as to<br />
their difficulties and progress and to put us<br />
in a position to give counsel, information<br />
and advice based upon thirteen years of<br />
continent-wide experience. The inexperi<br />
enced local directors and managers, even<br />
though federated with the union, go blun<br />
dering on in a spirit of isolation and ob<br />
stinate self-confidence, and do not ask for<br />
assistance in the solution of their problems<br />
until they have run themselves into what<br />
may be called an economic cul-de-sac.<br />
We are now trying to get monthly re<br />
ports of operations and it is the intention<br />
to exclude societies which persist in unbusi<br />
nesslike conduct violating the good name of<br />
the Movement. Our progress has been from<br />
the commencement considerably retarded<br />
through lack of funds for educational,<br />
propaganda and advisory purposes. We<br />
have hundreds of institutions throughout<br />
the country conducted without any vision<br />
of Co-operation, but in imitation of Roch<br />
dale principles, and if we can only get a<br />
substantial proportion of them into line I<br />
feel that they could without too much sacri<br />
fice adequately finance the Movement and<br />
increase the ratio of success, as well as<br />
promote the permanency of the 'Societies.<br />
GEORGE KEEN,<br />
General Secretary.<br />
The Co-operative Union of Canada.<br />
LEAGUE HELPS AUSTRALIA<br />
High Commissioner's Office,<br />
Australia House,<br />
London, England.<br />
To The Co-operative League:<br />
As chairman of the Board of Directors<br />
of the Civil Service Co-operative Society<br />
of Sydney, and as one greatly interested in<br />
the success of the Co-operative Movement<br />
in Australia, I have heard of the work done<br />
by your League by means of tracts and<br />
other propaganda, and publicity, and I<br />
would esteem it a very great favor if you<br />
could furnish me with copies of the same.<br />
I believe good work can be done in Aus<br />
LETTERS<br />
tralia, and your publications give good<br />
ideas and directions for our efforts.<br />
D. A. W. LACHLAN.<br />
FROM THE INTERNATIONAL LABOR<br />
OFFICE<br />
Societe des Nationa<br />
League of Nations<br />
Bureau International du Travail<br />
International Labour Office<br />
Geneva, Switzerland.<br />
To The Co-operative League,<br />
167 West 12th St., New York.<br />
We have been very grateful to you for<br />
sending the copy of the "Model Co-operative<br />
State Law," which represents a very great<br />
work indeed. When it becomes enacted it<br />
will be, in my oponion, one of the most<br />
complete and adequate co-operative laws,<br />
embodying the best experience of the Co<br />
operative Movement throughout the world.<br />
Prom the study on "Co-operative Hous<br />
ing," which you kindly sent me at the same<br />
time, I recognize that your representatives<br />
have taken full advantage of the oppor<br />
tunities of study and observation which<br />
their journey in Europe afforded them.<br />
This will assuage to some extent the re<br />
grets which I expressed in my last letter<br />
for not having had a better opportunity of<br />
meeting them at Basle. D. Y. PAUQUET.<br />
EDUCATION GIVES HELP<br />
It seems to me that every locality when<br />
conditions are not ripe for carrying on a<br />
distributive enterprise, may be found suffi<br />
cient advocates of Co-operation to form a<br />
social and educational club, which would<br />
sooner or later change from the abstract<br />
to the concrete. Such local circles might<br />
maintain a library, reading and meeting<br />
rooms, and conduct meetings, discussions,<br />
lectures, socials, entertainments, etc., to<br />
further the propagation of Rochdale prin<br />
ciples.<br />
The Glynn System (non-co-operative<br />
scheme) has taken about $200 out of Ithaca<br />
workmen. Thanks to The Co-operative<br />
League, they got no more. J. G. ROTH.<br />
Ithaca. N. Y._________________<br />
THIRD <strong>CO</strong>-OPERATIVE<br />
<strong>CO</strong>NGRESS<br />
Place: — Auditorium of Lexington<br />
Hotel, Michigan Boulevard and<br />
22nd Street, Chicago, Illinois.<br />
Date: — October 26th, 27th and 28th,<br />
<strong>1922</strong>.<br />
Time of Opening: — 10 A. M., Thurs<br />
day, October 26th.<br />
<strong>CO</strong>-<strong>OPERATION</strong><br />
PUBLICATIONS<br />
OF THE <strong>CO</strong>-OPERATIVE LEAGUE<br />
HISTORICAL Per Copy Per 100<br />
3. Story of Co-operation . ................................................^ .10 $6.00<br />
7. British Co-operative Movement ........................................ .10 6.00<br />
10. A Baker and What He Baked (Belgian Movement)...................... .05<br />
38. Co-cperative Consumers' Movement in the United States............... .05 4.00<br />
39. Consumers' Co-operative Societies in N. Y. State, (Published by Con<br />
sumers' League) .................................................. .10<br />
TECHNICAL<br />
4. How to Start and Run a Rochdale Co-operative Society.................. .10 4.00<br />
6. System of Store Records and Accounts................................ .50<br />
6. A Model Constitution and By-Laws for a Co-operative Society........... .06 2.60<br />
8. Co-operative Education. Duties of Educational Committee Defined..... .10<br />
9. How to Start a Co-operative Wholesale................................ .10<br />
27. Why Co-operative Stores Fail . ...... .^................................ .02 1.00<br />
2. Co-operative Store Management ...................................... .10<br />
14. How to Start and Run a Women's Guild................................ .05<br />
15. How to Organize a District Co-operative League ........................ .10<br />
MISCELLANEOUS<br />
16. Model Co-op State Law ............................................... .10<br />
17. Syllabus for Course wf Lectures, with References and Bibliography.... .25<br />
46. Producers' Co-operative Industries ................................... .10<br />
11. Control of Industry by the People Through the Co-operative Movement... .10<br />
12. Credit Union and Co-operative Store.................................. .05 1.75<br />
34. Co-operative Movement (Yiddish) .................................... .02 1.25<br />
43. Co-operative Housing ................................................. .10<br />
42. Co-op Homes for Europe's Homeless ................................. .10<br />
ONE-PAGE LEAFLETS<br />
(One cent each; 50 cents per 100; $2.50 Der 500; $4 per 1,000)<br />
(1) Principles and Aims of The Co-operative League; (17) Do You Know why You Should Be a<br />
Co-operator; (20) Why Loyalty Is Necessary; (21) Cost and Crime of Credit; (22) A Real<br />
Co-operator; (25) Resolutions Adopted by A. F. of L.; (26) Factory Workers Co-operate!;<br />
(28) Do You Know About Co-operation in Europe?; (40) Have You a Committee on Educa<br />
tion and Recreation?; (44) What Is the Co-operative Movement?; (45) Schools and<br />
Stores; (47) A Man's Right to a Job; (48) Tips to Co-operators; (49) Think It Over.<br />
MONTHLY PUBLICATIONS<br />
<strong>CO</strong>-<strong>OPERATION</strong>—(In bundle lots, $7.60 per hundred). Subscription, per year......... .$1.00<br />
HOME <strong>CO</strong>-OPEEATOR, 4 pages ................................................ $1 per 100<br />
INTERNATIONAL <strong>CO</strong>-OPERATIVE BULLETIN (Pub. by The I. C. A.)...... .per year, $1.50<br />
BOOKS<br />
The following booka are recommended as containing the best discussions of the modern<br />
Co-operative Movement. They may be ordered through The League:<br />
Bubnoff, J. B.: The Co-operative Movement in Russia, 1917......................... ..$1.25<br />
Faber, Harald: Co-operation in Danish Agriculture, 1918.............................. 2.75<br />
Flanagan, J. A.: Wholesale Co-operation in Scotland, 1920............................ 2.00<br />
Gebhard, Hannes: Co-operation in Finland, 1916...................................... 2.00<br />
Gide, C.: Consumers' Co-operative Societies, 1921...................................... 2.50<br />
Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, $2.00; paper<br />
bound ........................................................................... .60<br />
Howe, Fred C.: Denmark, a Co-operative Commonwealth, 1921......................... 2.00<br />
Maxwell, Wm.: History of Co-operation in Scotland, 1910.............................. 2.00<br />
Nieholson, Isa: Our Story ............................................................. .25<br />
Powell, G. Harold: Co-operation in Agriculture. Macmillan ........................... 1.50<br />
Redfern, Percy: The Story of the C. W. S............................................. 2.00<br />
Redfern, Percy: The Consumers' Place in Society, 1920............................... 1.00<br />
Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918...................... 1.50<br />
Smith-Gordon: Co-operation in Many Lands, 1920..................................... 1.50<br />
Sonnichsen, Albert: Consumers' Co-operation, 1919. Cloth bound, $1.75; paper bound... .75<br />
Stolinsky, A.: The Co-operative Movement. In Yiddish................................ 1.00<br />
Webb, B. and S.: The Consumers' Co-operative Movement, 1921........................ 5.00<br />
Webb, Catherine: Industrial Co-operation, 1917 ...................................... 1.50<br />
Woolf, Leonard: Co-operation and the Future of Industry ........................... 1.50<br />
Woolf, L.: Socialism and Cooperation ............................................... 1.50<br />
"The Co-operative Consumer" and "Co-operation," III (1917), VI (1920), VII (1921).... 1.25<br />
Transactions of Second American Co-operative Convention, 1920....................... 100<br />
The People's Year Book, <strong>1922</strong>...................................................... .75<br />
(Ten cents postage should be added for books which cost more than $2.00, and five cents<br />
for the smaller books.)
THE <strong>CO</strong>-OPERATIVE LEAGUE<br />
(Member of The International Co-operative Alliance)<br />
167 West 12th Street, New York<br />
An educational organization for teaching the history, principles, methods and aims of the<br />
Co-operative Movement and for the promotion of Co-operation in the United States.<br />
Join The League and thus help promote the educational work of the Co-operative<br />
Movement. Individual Membership, $1.00 a year. Subscribe for <strong>CO</strong>-<strong>OPERATION</strong>,<br />
the Monthly Magazine of The League, and keep in touch with the Movement.<br />
TTnr>ln
164<br />
This commission should be a pre<br />
liminary body. It should be created<br />
by Congress and authorized and<br />
empowered temporarily to control<br />
and operate the railroads for serv<br />
ice. It should be regarded as an<br />
emergency body to meet the rail<br />
road crisis.<br />
Transportation and shipping rates<br />
should be at a price sufficiently<br />
above cost to provide interest on<br />
true indebtedness, reserve for re<br />
placement and repairs, gradual<br />
amortization of indebtedness, and<br />
a surplus-saving.<br />
At the end of a period of opera<br />
tion under the Railroad Commission,<br />
the people should elect a Board of<br />
Directors to take the place of the<br />
Commission. The last function of<br />
the commission before retiring<br />
should be transferring the rail<br />
roads to a new ownership basis and<br />
turning them over to the directors<br />
of the new owners. The new owners<br />
should be the people of the United<br />
States, incorporated into an organi<br />
zation which may have a different<br />
name if public sentiment and busi<br />
ness expediency demand it.<br />
The users of the railroads should<br />
proceed to develop the capital to<br />
pay off the old debt to the present<br />
security holders on the basis of a<br />
just valuation. A duplicate of each<br />
railroad ticket and of each bill of<br />
lading would constitute a certificate<br />
indicating payment for services.<br />
The citizens, precisely as they do<br />
politically, would vote upon matters<br />
pertaining to railroad control. The<br />
old town meeting (the "members'<br />
meeting") should be instituted for<br />
the discussion of transportation<br />
problems. Elected representatives<br />
would have not political but eco<br />
nomic responsibilities.<br />
A certain percentage of the sur<br />
plus-saving would be given back to<br />
travelers and shippers as a savings-<br />
return to reduce immediately the<br />
cost of transportation to the users.<br />
Certificates of payment for trans<br />
portation or freight would be ex<br />
changeable for railroad bonds.<br />
<strong>CO</strong>-<strong>OPERATION</strong><br />
Thus, the present owners would re<br />
ceive money until paid for their<br />
ownership; the travelers and ship<br />
pers would get reduced rates and<br />
ownership bonds.<br />
With the principle of one vote<br />
only for each citizen and no proxy<br />
voting, with surplus-savings re<br />
turned to the users, the railroads<br />
would become instruments of serv<br />
ice for the people.<br />
This plan is more practical than<br />
the political plan. But the people<br />
are fed on politics by politicians.<br />
They are taught to turn to the Gov<br />
ernment rather than to themselves<br />
to solve their problems, and conse<br />
quently administration of the rail<br />
roads in the interest of the people<br />
seems then like a strange theory.<br />
But it must eventually come. Not<br />
the government but the people<br />
should own the railroads.<br />
THE PLIGHT OF THE FARMERS<br />
The great mass of people in the<br />
United States who earn their living<br />
by performing useful services are in<br />
a bad plight. The miner, the rail<br />
roader, the factory worker live on<br />
the brink of starvation. Their em<br />
ployment is always doubtful; and<br />
getting a living wage out of their<br />
employer is a constant struggle.<br />
The people in this country who have<br />
abundance, and who enjoy all the<br />
protection of the law and the pres<br />
tige of position are the gamblers—<br />
the people who buy the products of<br />
labor at the lowest possible price for<br />
the purpose of selling at the highest<br />
price. The laws, the courts and<br />
most of the machinery of govern<br />
ment are all shaped up to protect<br />
and promote gambling—commonly<br />
called "business."<br />
In this decay of industry the<br />
farmer suffers along with the rest<br />
He performs useful service. That is<br />
the cause of his plight. W. C. Lans-<br />
don, of the Farmers' Union, in the<br />
educational lectures which he has<br />
been delivering before farmers<br />
groups in Nebraska, has brought out<br />
some startling facts to show what<br />
has happened to the farmer in the<br />
United States. He said: "They say<br />
I am a pessimist. But the man who<br />
sees a house afire and turns in the<br />
alarm is not a pessimist. He is only<br />
taking a common sense precaution<br />
to stop damage and destruction.<br />
The fact is that agriculture was<br />
never in such desperate straits."<br />
From the Nebraska Union Farm,<br />
we learn that Mr. Lansdon has<br />
pointed out that when Nebraska was<br />
admitted to statehood every farmer<br />
in the state owned his land, and it<br />
was not mortgaged. Now 40 per<br />
cent of the farms of the state are<br />
operated by tenants, and the farms<br />
are mortgaged for $300,000,000.<br />
The same condition exists in every<br />
state in the union. In the United<br />
States as a whole, about 40 per cent<br />
of the farms are operated by ten<br />
ants, and these farms are covered<br />
with mortgages aggregating seven<br />
billion dollars. The last census<br />
showed an increase in this mort<br />
gage indebtedness of 150 per cent.<br />
In addition to the mortgages on<br />
their farms, the farmers of this<br />
country have about three billions of<br />
other debts, making an indebtedness<br />
of ten billions in all. This means<br />
that the farmers, who owned their<br />
farms sixty years ago, have now<br />
lost title to 40 per cent of their land<br />
and have "gone in the hole" ten<br />
billion dollars. That is what their<br />
toil has earned for them.<br />
Into whose hands has this great<br />
wealth gravitated? Into the hands<br />
of gamblers. The bankers, the "in<br />
vestors," the insurance companies<br />
and the corporations are slowly but<br />
steadily getting the farms away<br />
from the farmers. The biggest<br />
profit in owning land is not to farm<br />
it, but to hold it for speculation, and<br />
let some one else farm it. As the<br />
shoe-maker now works with some<br />
body else's machine so will the<br />
farmer soon be tilling somebody<br />
else's farm. The decay of an eco<br />
nomic system is associated always<br />
with this exploitation of the worker.<br />
The important thing for the farm<br />
er to learn is that he can not save the<br />
situation by waxing patriotic, "back<br />
<strong>CO</strong>-<strong>OPERATION</strong> 165<br />
ing up Unele Sam," raising soldiers<br />
for the next war, electing "good men"<br />
to office, or by doing anything else<br />
that compromises with the present<br />
profit system and the government<br />
that is controlled by it. It is all<br />
a losing game—unless he too means<br />
to go into gambling.<br />
But something can be done. Be<br />
sides producing food, the farmer is<br />
in the strategic position to perform<br />
the great social service. He can<br />
realize that the profit-system is going<br />
to pieces—is coming to an end—be<br />
cause it does not work. And having<br />
seen this, he can turn his face toward<br />
the future and occupy himself in<br />
building a new economic system<br />
based on the motive of service in<br />
stead of profits. When he does this<br />
he will lead the world. And here and<br />
there are encouraging evidences that<br />
he is catching the vision.<br />
"POTATOES DON'T GROW BY<br />
THE POT"<br />
There is an old adage to this ef<br />
fect: When you want to cook a pot<br />
of potatoes you have to go out and<br />
get them.<br />
Karl Marx and his disciples have<br />
taught that the capitalist system<br />
would go to smash of its own in<br />
herent inefficiency. They were right.<br />
It is going to pieces. European<br />
capitalists know it, but the Ameri<br />
cans have not yet found it out. Then<br />
Marx and his followers have always<br />
said that the workers would step in<br />
and take charge of things and run<br />
them. And that is where they were<br />
wrong.<br />
Some people have had the idea<br />
that as soon as things go to pot ev<br />
erything is then ready for the<br />
workers to start the brew boiling,<br />
and the new regime is here.<br />
Well, I have an idea that if the<br />
capitalist system in the United<br />
States should go to smash, and we<br />
should have a revolution, the work<br />
ers might attempt to run things, but<br />
before they had gone very far, about<br />
the same people who are now run<br />
ning things would be found in
166 <strong>CO</strong>-<strong>OPERATION</strong> <strong>CO</strong>-<strong>OPERATION</strong> 167<br />
charge and we should have capital<br />
ism again.<br />
Potatoes do not grow by the pot.<br />
If the workers in the United States<br />
are ever going to play a large part<br />
in running the affairs of this coun<br />
try they will have to go out and<br />
learn how. If they are going to boil<br />
potatoes they will have to go out<br />
and gather them. Merely being by<br />
the pot when the fire blazes up and<br />
the water begins to boil is not<br />
enough.<br />
If the working people are going<br />
to run the affairs of any country<br />
they must not only get experience<br />
and training in management, admin<br />
istration and what is called "busi<br />
ness," but they must develop people<br />
who can organize large affairs and<br />
who have capacity and ability for<br />
social statesmanship. Things are<br />
now being administered—after a<br />
fashion—but they are being done.<br />
Food is produced, clothing is made<br />
and trains run; and it is all under<br />
capitalistic administration. When<br />
the workers 'have learned to do it<br />
better, that will be time enough for<br />
them to try it. And when they have<br />
learned to do it better, they will<br />
naturally find themselves doing it;<br />
and the Marxists will be wrong, for<br />
nothing need go to smash.<br />
But the workers will have to hur<br />
ry up with their training, or there<br />
will be trouble before they are<br />
ready.<br />
JOB CURSED THE DAY HE WAS<br />
BORN<br />
The most discouraging fact about<br />
Co-operation in the United States is<br />
that big business is not worried about<br />
it. Over in Europe the profiteers<br />
have been cursing Co-operation for<br />
forty years; here they pay little at<br />
tention to us. We will never get any<br />
where until profiteering business gets<br />
excited and starts to blackguard us.<br />
Then we will go forward.<br />
Once upon a time an old clergyman<br />
who had labored faithfully in one<br />
church for forty years was given a<br />
vacation, and a fund was raised to<br />
pay for a trip to Europe with his<br />
good wife. They set sail. A great<br />
storm arose. The wind blew and the<br />
billows rolled. The ship was tossed<br />
and beaten by the waves. With tre<br />
pidation the pious man sought the<br />
captain and said, "Do you think there<br />
is any danger of our being lost,<br />
captain?" The captain replied, "Do<br />
you .see those sailors forward there?<br />
Listen; hear 'em swear ? Well, when<br />
they stop swearing and begin to pray,<br />
there is danger; but so long as they<br />
keep on cursing you are safe."<br />
All through the stormy night the<br />
two pious souls remained awake.<br />
Now and then the parson's wife would<br />
say, "Father dear, do you think the<br />
vessel is sinking?" And the old<br />
gentleman would open the cabin door<br />
and eagerly Jiisten to the voices for<br />
ward. Then he would softly close<br />
the door and with a sigh of relief ex<br />
claim, "Thank God, they are still<br />
cursing."<br />
That is what we need. We need<br />
to get the Co-operative Movement<br />
into such shape that we can open the<br />
store door and listen to the voices of<br />
the tradesmen up the street and ex<br />
claim, like the good parson, "Thank<br />
God, they are cursing at last."<br />
J. P. W.<br />
THE <strong>CO</strong>NGRESS<br />
All persons interested in the pro<br />
motion of the Co-operative Move<br />
ment in the United States are invited<br />
to attend the Third Co-operative<br />
Congress at Chicago, October 26, 27<br />
and 28. Societies which are mem<br />
bers of The Co-operative League<br />
will send delegates. Other organi<br />
zations have been invited to send<br />
fraternal delegates.<br />
The keynote of this Congress will<br />
be: How to unite all of the Co<br />
operative Movement in this country<br />
into a solid body for united action<br />
and mutual protection. This is a<br />
task well worth undertaking for it<br />
means not only the advancement of<br />
Co-operation but the protection of<br />
the working people as well.<br />
SEEN HERE AND THERE<br />
RURAL CREDITS—<strong>CO</strong>-OPERATIVE BANKING AND THE U. S.<br />
GOVERNMENT<br />
It is often asked why the govern<br />
ment of the United States does not<br />
encourage co-operative banking to<br />
help the poor farmers as have the<br />
governments of Germany, Denmark<br />
and India. There is some history on<br />
this subject which is illuminating.<br />
At the First American Co-operative<br />
Congress in Springfield, Illinois, in<br />
1918, Charles O. Boring reported the<br />
experience of a committee on Co<br />
operation in attempting to get a hear<br />
ing before Congress in 1911. "Why<br />
did we not succeed? Simply because<br />
the trusts were there in force; they<br />
had moved upon the House and the<br />
Senate, and they prevailed."<br />
Some illuminating information is<br />
to be found in two old documents re<br />
posing among the musty archives in<br />
Washington. They are "Compilations<br />
on Agricultural Credit Banks," Gov<br />
ernment Printing Office, Washington,<br />
1912; and a Majority Report," sixty-<br />
third Senate, Document No. 261,<br />
Part I.<br />
In 1921, Joel Henry Greene publish<br />
ed in "The Freeman" (March 16th)<br />
the gist of the incidents relating to<br />
the government's motions on behalf<br />
of co-operative banking as revealed<br />
by these documents. It is interest<br />
ing history.<br />
David Lubin gave the best years<br />
of his life to promoting co-operative<br />
organization among the farmers. He<br />
labored in the United States until he<br />
became disheartened and then went<br />
to Europe and established his head<br />
quarters in Rome. For many years<br />
David Lubin tried earnestly to get<br />
the truth about the necessity for co<br />
operative rural credit before the<br />
American people and their Congress.<br />
He accurately predicted our present<br />
unfortunate situation if such rural<br />
credit was denied. When Mr. Lubin's<br />
repeated appeals could be shelved no<br />
longer, President Taft sent his Ameri<br />
can Commission, appointed through<br />
the governors of the States to Eu<br />
rope to study the problem. In his<br />
letter accompanying the findings of<br />
this commission addressed to the gov<br />
ernors of the States Mr. Taft said:<br />
"A study of these reports and the recom<br />
mendations of Ambassador Herrick which<br />
I am sending you, convinces me of the adap<br />
tability to American conditions of the co<br />
operative credit-plan as set forth in the<br />
organization of the Raiffeisen banks in Ger<br />
many . . . We must establish a credit-<br />
system of, for and by the farmers, of the<br />
United States. It were better, otherwise,<br />
not to consider the matter at all ... Their<br />
establishment is generally a matter for<br />
State legislation and encouragement, their<br />
organization and management are wonder<br />
fully simple, and the experience of the Eu<br />
ropean countries shows that their success is<br />
practically inevitable where the environ<br />
ment is congenial to their growth and where<br />
proper laws are passed for their conduct."<br />
Then the American Bankers' As<br />
sociation immediately got busy and<br />
sent their own commission to Europe,<br />
in advance of Mr. Taft's, to head off<br />
the adoption of any scheme of co<br />
operative rural credit. The bankers<br />
met Ambassador Herrick and Mr. Lu<br />
bin in Paris in a conference which<br />
lasted nearly a whole week. Their<br />
discussions make interesting reading<br />
just now. The bankers wanted<br />
"mortgage credit-banks" to be set up<br />
by bankers. Mr. Lubin strenuously<br />
opposed this demand and called at<br />
tention to the fact that "the move<br />
ment in the early 'eighties for mort<br />
gage-banks by bankers, led to dis<br />
astrous results." He quoted from<br />
Mr. Edward F. Adams' "Sound Cur<br />
rency" that: "loans were largely spec<br />
ulative and methods deceptive and at<br />
times fraudulent." The bankers had<br />
depended on assistance from Ambas<br />
sador Herrick, inasmuch as he had<br />
been president of the American Bank<br />
ers' Association, also Governor of<br />
Ohio, and was himself possessed of<br />
large banking-interests. "Governor<br />
Herrick," it is recorded, "listened at<br />
tentively to both sidesof the question.
168 <strong>CO</strong>-<strong>OPERATION</strong> <strong>CO</strong>-<strong>OPERATION</strong> 169<br />
On being asked for his opinion, he<br />
said he preferred to defer it for his<br />
Report to the Administration, which<br />
he was about to draw up; neverthe<br />
less, he unhesitatingly expressed him<br />
self strongly in favor of the proposed<br />
investigation by the Select Committee<br />
in the European countries."<br />
Conservative bankers have been<br />
knocking Mr. Herrick ever since for<br />
not playing the game on that occa<br />
sion in true banker's style. In spite<br />
of the great number of able, interest<br />
ed financiers who accompanied Mr.<br />
Taft's commission in order to ham<br />
string it, only six of the sixty-one<br />
commissioners made a minority-re<br />
port against the Raiffeisen system of<br />
rural credit. The grounds for their<br />
opposition are evident when their oc<br />
cupations, such as banker, cotton-<br />
manufacturer, lawyer-farmer, etc.,<br />
are known. A great newspaper<br />
"drive" was promptly ordered by the'<br />
bankers, assisted by Boards of Trade<br />
and similar financial interests, and the<br />
report of the commission was smoth<br />
The Associated Grange Ware<br />
house is the Co-operative Wholesale<br />
of the State of Washington. It sup<br />
plies some ninety stores. Until re<br />
cently it 'had been buying soap from<br />
a concern in Portland, Oregon, and<br />
was doing a pretty big trade in soap<br />
—about a hundred cases a week.<br />
The orders kept increasing, and<br />
the private stores began to see a<br />
menace in this growing Co-opera<br />
tive Movement. Some of them com<br />
plained to the soap manufacturers<br />
in Portland; and suddenly, without<br />
warning, the orders of the co-opera<br />
tive Grange Warehouse were can<br />
celled. The manager took a hasty<br />
trip to Portland and thought he had<br />
adjusted the matter, when again the<br />
orders were cancelled. This time<br />
he called on the president of the pri<br />
vate soap factory, who informed<br />
him that the Buyers' Association of<br />
Portland had threatened to stop all<br />
purchases if the soap company con<br />
A STORY IN SOAP<br />
ered and its effect killed. Mr. Taft,<br />
after that, whenever he had a chance<br />
gave the farmers a slap so that there<br />
should be no question as to his atti<br />
tude.<br />
That was the end of the U. S. gov<br />
ernments' interest i n co-operative'<br />
banking. It will probably be re<br />
vived again when the farmers' plight<br />
becomes so desperate that they are<br />
not producing "enough material to<br />
keep the wheels of speculation run<br />
ning full speed." Then something<br />
will have to be done. Some loud-<br />
voiced pompous politician will thun<br />
der forth his demands that "measures<br />
must be taken to revive our declining<br />
husbandry." This will happen when<br />
the area of untilled land has still<br />
more increased and the rural popula<br />
tion has still more decreased and the<br />
peasant farmers have become hungry<br />
and ugly. Then we .shall get legisla<br />
tion authorizing co-operative bank<br />
ing. When things get bad enough,<br />
good results will arrive.<br />
tinued to do business with the Co<br />
operative Wholesale. The Grange<br />
Warehouse found itself effectively<br />
boycotted; it could not buy soap.<br />
Years ago the C. W. S. of England<br />
was forced to manufacture their<br />
own soap through the "Sunlight<br />
Soap" boycott. Now in America,<br />
the same condition has arisen.<br />
The capital of the Grange Whole<br />
sale was very limited. They could<br />
not buy or build a factory, but they<br />
could engage a chemist to analyze<br />
the soaps on the market and pro<br />
duce a better soap. This they did.<br />
They then found a small soap manu<br />
facturer who agreed to make soap<br />
exclusively for the co-operative<br />
wholesale. Thus the "bleauer<br />
White" brand was put on the mar<br />
ket. The manager and a couple of<br />
directors went about telling the<br />
story of the boycott, and of their<br />
venture in production for them<br />
selves, to the members of the<br />
Grange co-operative stores. Loyal<br />
ty was urged. The people were<br />
called upon to buy only their own<br />
soap, and to buy lots of it, because<br />
a contract for three hundred cases<br />
a week to start with had to be made.<br />
They responded so well that in a<br />
few months the output of the fac<br />
tory was increased to five hundred<br />
cases per week.<br />
Then the Portland private soap<br />
factory woke up. They realized<br />
they were losing some good orders,<br />
and called at the co-operative office<br />
in Seattle and offered all kinds of<br />
inducements to get back the trade.<br />
Mr. Goss, the co-operative manager<br />
answered, "No, indeed, we like our<br />
own soap better and can sell it<br />
cheaper than yours."<br />
The next thing that happened was<br />
this: A few of the co-operative<br />
stores had managers who were not<br />
entirely converted to the co-opera<br />
tive principle, and when the Port<br />
land salesman came around offering<br />
the old soap at 75 cents a case less,<br />
they naturally bought the "bar<br />
gain," and offered it to the Co-<br />
operators.<br />
Again the' educators had to go the<br />
rounds beseeching the members to<br />
remain loyal, to buy their own soap<br />
even if the other was given away.<br />
At last they saw the point. They<br />
still see it, and refuse to buy any<br />
thing but the "Gleaner White" brand,<br />
and the unfaithful managers now<br />
have on their hands dozens of<br />
cases of "scab" soap which they<br />
cannot even give away.<br />
THE <strong>CO</strong>-OPERATIVE MOVEMENT IN AUSTRIA<br />
By EMMY FREUNDLICH<br />
Member of the Central Committee of the International Co-operative Alliance,<br />
Member of the Austrian Parliament.<br />
In a country, where we have every<br />
day a changing value of exchange,<br />
the progress of an economic organi<br />
zation meets with serious obstacles.<br />
It is not possible, for example, to keep<br />
count of expenses. The value of in<br />
come and outgo changes every day.<br />
Nobody, who has real money in his<br />
hands, can imagine the difficulty of<br />
having money that is bad. In Aus<br />
tria we' find that all that we have in<br />
our economic life is changing and all<br />
is every day altered in value. Every<br />
month all that we need for living is<br />
noted by a state department, and<br />
when the figures of cost of living go<br />
up, then all wages are raised in the<br />
same percentage. Not only the wages<br />
are changing from month to month,<br />
also our cast of freights, our taxes<br />
and all that is necessary for the work<br />
of an economic organization changes<br />
from week to week, often from day<br />
to day. For all the value of our<br />
capital is changing with the value of<br />
the krone.<br />
In any other country the co-opera<br />
tive societies can go to their mem<br />
bership and ask for more capital. If<br />
we would do that in this way we<br />
would never have capital enough, be<br />
cause, when the capital came into our<br />
treasury, the' kronen would have only<br />
the half of their value.<br />
We must ask that our membership<br />
spend all the time more money at<br />
their co-operative stores, because all<br />
that we have is growing higher in<br />
price and all the necessary money can<br />
not come from our membership. That<br />
our capital is of small value, is not<br />
the fault of our Movement. That<br />
came out of the bad circumstances<br />
in which our state is put by the peace<br />
treaty. Why, we ask, must the Co<br />
operative Movement spend its power<br />
and lose its money for this reason?<br />
It is necessary that we shall be able<br />
to buy for our members, because<br />
without our distribution the consum<br />
ers in Austria have not enough to<br />
eat. What we have is not money, it is<br />
only paper. We can not buy from<br />
other countries. Now one pound of<br />
bread costs 5,670 kronen and a pound
170 <strong>CO</strong>-<strong>OPERATION</strong> <strong>CO</strong>-<strong>OPERATION</strong> 171<br />
of beef costs 15,000 kronen. A meal<br />
in the restaurant of our wholesale<br />
costs 5,000 kronen. It is inconceiv<br />
able that the men who made the<br />
"peace treaty" know what misery<br />
they have brought upon the world.<br />
In a short time we shall have a new<br />
collapse and another revolution and<br />
thousands of people will lose their<br />
lives, if the situation is not changed.<br />
There are many other difficulties<br />
behind the evolution of our Move<br />
ment. We have worked with all our<br />
forces and we have had also the last<br />
year good results. The figures in our<br />
report are very high, and a foreign<br />
The number of members has in<br />
creased 14 per cent and the numjber<br />
of stores 20 per cent during the year.<br />
All the figures are higher than be<br />
fore, but all that we note in Austrian<br />
kronen does not represent the true<br />
picture of our evolution. We do also<br />
what all our private traders are do<br />
ing, we have noted the figures also<br />
in gold kronen. This shows a better<br />
picture of the situation. But all that<br />
can never show the correct picture,<br />
because all is changing from day to<br />
day.<br />
It can be seen by these figures how<br />
our economic situation works against<br />
our normal evolution. All that we are<br />
building and producing is torn down<br />
by the enormous devaluation. We<br />
can do what we like but we have not<br />
the satisfaction of seeing that we<br />
come forward. Our real economic<br />
values are lost, and we must struggle<br />
in all manners of ways only for life.<br />
We must have more energy than other<br />
people to save ourselves from starv<br />
ing. We are living on the verge of<br />
reader will find that the Austrian Co-<br />
operators may seem rich, but nobody<br />
must forget that all the figures are<br />
only Austrian kronen.<br />
All the co-operative societies that<br />
are members of our entral Union<br />
have had good results. But we have<br />
not so many societies as we had be<br />
fore, because we have united more<br />
and more small societies to big ones.<br />
We have only 97 co-operative so<br />
cieties in our union and 52 societies<br />
which are productive societies and<br />
societies for house building and<br />
credit. Their evolution is shown by<br />
the following figures:<br />
1914. 1920. 1921.<br />
Number of co-operative societies which<br />
reported .......................<br />
96<br />
103<br />
97<br />
Number of local stores..............<br />
584<br />
704<br />
Shares of the members..............Kr, -. 3,105,065 16,532,365 107,213,836<br />
Reserve funds ..................... 1,703,065 16,417,871 85,879,491<br />
Net surplus-savings ................ 6,722,356 55,075,750 483,411,017<br />
Turnover of goods.................. 43,068,851 1,821,130,750 10,388,278,304<br />
Total profit and surplus-savings..... 6,722,356 44,035,573 986,121,877<br />
Profit and savings-returns for the<br />
members ....................... 1,379,698 36,727,433 153,300,562<br />
Number of members................ 105,065<br />
503,622<br />
574,116<br />
collapse that will destroy what we<br />
have built. But from day to day<br />
some of our power and some of our<br />
economical reserve is lost; and we<br />
fear that we will not have enough en<br />
ergy to continue this struggle against<br />
a fate which we do not deserve and<br />
which we have had imposed upon us<br />
by the war. The labor people get<br />
nothing from our misery; but the<br />
foreign capitalists get our shares of<br />
stock and our factories for a cheap<br />
price. All our shipbuilding and our<br />
railway companies are in the hands<br />
of English capitalists. The English<br />
people themselves have unemploy<br />
ment and suffering. That is the work<br />
of capitalists in the whole world.<br />
But we Co-operators can say that<br />
we have done what we could do. De<br />
spite all the misery, our Movement<br />
comes forward. We are happy to<br />
say that one of the strongest and<br />
most substantial organizations in<br />
Austria is our Co-operative Move<br />
ment.<br />
I<br />
THIRD <strong>CO</strong>-OPERATIVE <strong>CO</strong>NGRESS<br />
The arrangements for the Chicago<br />
Congress are going steadily forward.<br />
The committees have about completed<br />
their reports, which will furnish a<br />
large amount of carefully digested<br />
material for discussion. This will<br />
be a working Congress, devoted to<br />
solving the problems that confront<br />
our American Movement.<br />
Beginning with the July issue of<br />
this magazine, we have published in<br />
formation concerning the Chicago<br />
Congress. The call to the Congress,<br />
the program, the names of members<br />
of committees, the place of meeting,<br />
and general information have been<br />
published.<br />
No effort has been made to have<br />
a large attendance, but every effort<br />
has been made to have a full attend<br />
ance of the earnest workers in the<br />
field of Co-operation in this country.<br />
The results of this Congress promise<br />
to be far reaching for the good of<br />
our Movement.<br />
Organizations sending delegates<br />
should send the names of their dele<br />
gates to the Executive Board of The<br />
League, 167 West 12th Street, New<br />
York City. The Congress will con<br />
vene at 10 a. m.<br />
THE PLACE OF THE <strong>CO</strong>NGRESS<br />
The Third Congress of The League<br />
will be held in the auditorium of the<br />
Lexington Hotel, Michigan Boulevard<br />
at 22nd Street, Chicago, October 26th,<br />
27th and 28th. Arrangements have<br />
been made with the hotel for special<br />
convention rates, which will enable<br />
delegates to live at the hotel where<br />
the Congress takes place.<br />
The special rates for delegates are<br />
as follows:<br />
Two in room, without bath, $1.50<br />
per day each.<br />
Two in room, with bath, $2.50 per<br />
day each.<br />
One in room, without bath, 2.00<br />
and $2.50 per day.<br />
NEWS AND <strong>CO</strong>MMENT<br />
One in room, with bath. $3.00,<br />
$3.50 and $4.00 per day.<br />
Delegates should send in their res<br />
ervations to the Lexington Hotel as<br />
early as possible, stating that they<br />
are attending the Congress of The<br />
League, in order to obtain special<br />
rates.<br />
RUSSIAN CENTRAL UNION SEND<br />
ING DELEGATE<br />
The Russian Co-operators have<br />
elected a delegate to represent them<br />
at the Third American Co-operative<br />
Congress. A cablegram has been re<br />
ceived by The Co-operative League<br />
from Moscow which translated reads<br />
as follows:<br />
Russian Consumers' Co-operatives elected<br />
Janson delegate to the Congress of the Co<br />
operative League, 26 October.<br />
(Signed) PRIGARIN,<br />
for the Board of Directors,<br />
of Centrosoyus.<br />
We understand that Mr. Janson is<br />
now on his way from Chita, Siberia.<br />
NORTHERN STATES <strong>CO</strong>-OPERA<br />
TIVE LEAGUE<br />
The Northern States Co-operative<br />
League, the District League of Min<br />
nesota, Michigan and Wisconsin, an<br />
nounces a gratifying increase in its<br />
membership. At the last meeting of<br />
the Executive Board, five co-opera<br />
tive societies made application to join<br />
the federation. The membership of<br />
the district league comprises 44 indi<br />
vidual members, in addition to the<br />
eleven co-operatives affiliated. Se-<br />
veri Alanne, the Secretary of the<br />
Northern States League, has been<br />
making a tour of the territory cov<br />
ered by the League. It is planned<br />
to tour Cedric Long, Technical Ad<br />
viser of The Co-operative League,<br />
through the district in October, for<br />
three weeks.<br />
The Northern States League re<br />
cently became affiliated with The Co<br />
operative League, and will have re<br />
presentatives at the Chicago Con<br />
gress.
172<br />
The following call has been sent<br />
out for its convention:<br />
CALL<br />
TO THE SE<strong>CO</strong>ND <strong>CO</strong>NVENTION OF<br />
THE NORTHERN STATES-<strong>CO</strong>-OPERA<br />
TIVE LEAGUE,<br />
All co-operative societies affiliat<br />
ed with the Northern States' Co-op<br />
erative League are notified that<br />
the second convention of the League<br />
will be held in the new building of<br />
the Franklin Co-operative Creamery<br />
Association, 2108 Washington Ave<br />
nue, N., Minneapolis, Minn., on the<br />
22nd and 23d days of October.<br />
Each constituent society shall be en<br />
titled to -be represented by at least<br />
one delegate and shall be entitled to<br />
send one additional delegate for each<br />
300 members above the first SOO or<br />
major fraction thereof.<br />
The invitation to send delegates<br />
to the convention has been extended<br />
to the Wisconsin, Michigan and Il<br />
linois States Federations of Labor,<br />
as well as to the Trades' and Labor<br />
Assemblies of St. Paul and Minne<br />
apolis. The Minnesota State Feder<br />
ation of Labor has already applied<br />
for membership in the League and<br />
will send delegates.<br />
There is every indication that the<br />
convention will be well attended and<br />
that business of great importance<br />
for the Co-operative Movement in<br />
the United States will be transacted.<br />
Dr. Warbasse, president of The<br />
Co-operative League (the national<br />
organization) will be present.<br />
Already eleven societies, with an<br />
aggregate membership of over 10,-<br />
000, have affiliated with the League<br />
and several more societies are ex<br />
pected to join it before the conven<br />
tion, and send delegates.<br />
All delegates should be in Min<br />
neapolis early enough to present<br />
their credentials at 9 o'clock in the<br />
morning on Sunday, October 22, as<br />
the convention will be formally<br />
opened at 10 o'clock.<br />
THE NORTHERN STATES <strong>CO</strong>-OPERA<br />
TIVE LEAGUE.<br />
S. ALANNE, Secretary.<br />
Box 147, Superior, Wis.<br />
<strong>CO</strong>-<strong>OPERATION</strong><br />
THE LEAGUE ENDORSED BY<br />
LABOR<br />
The following resolution, presented<br />
by David Hanly of the Trades and<br />
Labor Council of Nashville, Tennes<br />
see, was adopted at the Twenty-Sixth<br />
Annual Convention of the Tennessee<br />
Federation of Labor, endorsing the<br />
work of The Co-operative League:<br />
"Whereas, We realize that organiz<br />
ing our capital and purchasing power<br />
as consumers through the Co-opera<br />
tive Movement, as we have organized<br />
our earning power through the Labor<br />
Movement, is the only means where<br />
by Labor can ever hope to break that<br />
vicious circle whereby capital absorbs<br />
every material advantage gained by<br />
Labor by advancing the cost of living<br />
as fast as our earning power in<br />
creases ; and<br />
"Whereas, We realize one of the<br />
greatest needs of the workers today<br />
in their conflict with economic injus<br />
tice is education in the Co-operative<br />
Movement; and<br />
"Whereas, There has been formed<br />
an organization known as The Co<br />
operative League of America for that<br />
purpose, whose object is to promote<br />
the cause of Co-operation whereby<br />
mutual aid shall be developed among<br />
men in place of antagonism, to spread<br />
the knowledge of the history, princi<br />
ples and methods through co-opera<br />
tive education of the masses, to en<br />
courage the formation of co-oprative<br />
enterprises along lines proven by<br />
years of experience in this country<br />
and abroad, and to further and de<br />
velop the union of all true co-opera<br />
tive societies for the purpose of dis<br />
trict, national and international fed<br />
eration; and<br />
"Whereas, After earful investiga<br />
tion we find that The Co-operative<br />
League of America is endeavoring to<br />
fulfill these objects in every possible<br />
way and without ulterior motives of<br />
any kind, has no connection with or<br />
interest in any commercial enterprise,<br />
co-operative or otherwise, but is con<br />
ducted solely for the purpose of teach<br />
ing the principles and practices of<br />
Rochdale Co-operation; and<br />
ft<br />
"Whereas, We believe that an or<br />
ganization of this character and for<br />
this purpose fills a real need in this<br />
country and will be instrumental in<br />
saving many thousands of dollars of<br />
the working people's money annually<br />
by teaching the true principles and<br />
sound practices to managers, officers<br />
and members of societies and the<br />
workers in general, the lack of which<br />
has been with the resulting loss of.<br />
untold thousands of dollars of labor's<br />
hard-earned money; therefore, be it<br />
"Resolved, That the Tennessee Fed<br />
eration of Labor does hereby recog<br />
nize and approve of the work of The<br />
Co-operative League o f America,<br />
which is endeavoring to bring about<br />
co-operative unity, information and<br />
education in this country, and fur<br />
ther recommends that all groups of<br />
workers contemplating the organiza<br />
tion of co-operative enterprises are<br />
investing their money in any enter<br />
prise purporting to be co-operative<br />
in form or principle, consult with the<br />
officers of The Co-operative League of<br />
America before doing ,so; and be it<br />
further<br />
"Resolved, That the officrs of the<br />
Tennessee State Federation of Labor<br />
be hereby instructed to take up the<br />
study of consumers' Co-operation and<br />
lend their aid and assistance in fur<br />
thering its development Wherever<br />
and whenever possible to do so."<br />
AMERICAN LABOR PARTY'S<br />
ENDORSEMENT<br />
The joint convention for independ<br />
ent political action by labor, which<br />
took place in New York City, July<br />
16th, and which resulted in the for<br />
mation of the American Labor Party,<br />
passed a resolution giving its hearty<br />
endorsement to the Co-operative<br />
Movement. The resolution is as fol<br />
lows :<br />
"Whereas, The workers of America<br />
have created powerful trade unions<br />
to protect their interests as producers,<br />
and "Whereas, The real wages are de<br />
termined by purchasing power which<br />
vitally affects the interests of the<br />
<strong>CO</strong>-<strong>OPERATION</strong> 173<br />
workers in their capacity as consum<br />
ers, and<br />
"Whereas, speculators, middlemen,<br />
and all handlers who render no useful<br />
service, tend to depress the purchas<br />
ing power of wages by exploiting the<br />
workers at the point of consumption,<br />
and "Resolved, That this convention<br />
gives its hearty endorsement to the<br />
Co-operative Movement and urges<br />
our members and supporters to af<br />
filiate with this important arm of the<br />
Labor Movement."<br />
FRANKLIN CREAMERY GROWS<br />
The sales of dairy products to the<br />
thirty thousand members and pa<br />
trons of the Franklin Co-operative<br />
Creamery Association of Minneapo<br />
lis, during the period January to<br />
August, <strong>1922</strong>, amounted to $1,041,-<br />
274. Although the co-operative<br />
creamery has cut the price of milk<br />
down to almost cost, a 7 per cent<br />
savings return was made for the<br />
consumers, most of which will be re<br />
turned to them.<br />
The co-operative creamery now<br />
has more than five thousand share<br />
holders, representing all classes and<br />
creeds. It serves twenty-five thou<br />
sand families which are not mem<br />
bers of the association. The plant<br />
of the creamery is taxed to the limit<br />
to supply the needs of the co-opera<br />
tive patrons. Eighty-five wagons and<br />
trucks are employed, as against<br />
eighteen used during the first<br />
month's business, in March, 1921.<br />
A huge plant is now in process of<br />
construction, with a capacity that<br />
will double that of the present plant.<br />
As soon as the building is ready, the<br />
co-operative creamery will be able<br />
to supply all sections of Minneapo<br />
lis. The success of the Franklin Co<br />
operative Creamery is in large meas<br />
ure due to its systematic educational<br />
work. A monthly magazine, "The<br />
Minneapolis Co-operator," is pub<br />
lished by the association. Bundle<br />
lots of <strong>CO</strong>-<strong>OPERATION</strong> are distributed<br />
every month. Recently, the Labor<br />
Day parade in Minneapolis had an
174 <strong>CO</strong>-<strong>OPERATION</strong><br />
impressive co-operative section, con<br />
sisting of members and employees<br />
of the co-operative. Edward Solem,<br />
the manager of the association, de<br />
livered an address on Co-operation,<br />
at the Labor Day meeting. The<br />
Franklin Creamery strictly adheres<br />
to the Rochdale Plan, and is affiliat<br />
ed with the Co-operative League.<br />
<strong>CO</strong>-OPERATIVES <strong>CO</strong>-OPERATE<br />
WITH CLEVELAND DAIRY<br />
The City Co-operative Dairy of<br />
Cleveland, Ohio, continues to expand.<br />
It now has 1,300 members. At a re<br />
cent meeting, one of the speakers<br />
was Edward Solem of the Franklin<br />
Co-operative Dairy of Minneapolis.<br />
The manager's report to the mem<br />
bers showed that Mr. Solem had<br />
brought with him $6,000 from the<br />
Franklin Creamery as a loan to the<br />
Cleveland organization. This demon<br />
strates the splendid spirit of the<br />
Minneapolis society as well as its<br />
sound financial condition.<br />
It will be interesting to recall that<br />
when the Cleveland workers decided<br />
to organize a co-operative dairy they<br />
wired The League. The League wired<br />
Mr. Arness, of the Franklin Dairy to<br />
go to Cleveland and help them or<br />
ganize. The Franklin Dairy spared<br />
both their manager, Mr. Solem, and<br />
Mr. Arness to go to Cleveland and<br />
help in that city. Mr. Arness is<br />
working hard to make the dairy a<br />
success.<br />
It is a noteworthy sign of progress<br />
that the Co-operative Movement has<br />
reached a point in this country at<br />
which aid is extended from one co<br />
operative .society to another, and that<br />
a central national organization serves<br />
at the intermediary through which<br />
mutual aid, intercourse and under<br />
stand among societies are made pos<br />
sible. Instances of this co-operation<br />
among co-operatives are multiplying.<br />
They are signs that we are moving<br />
on.<br />
SOUND METHODS SAVE<br />
CLARINDA<br />
The co-operative store operated by<br />
the Farmers' Union at Clarinda, Iowa,<br />
had made some bad mistakes—poor<br />
management, over-buying, credit. It<br />
had a deficit of $3,000 in 1919. The<br />
business of 1920 and 1921 increased<br />
the indebtedness $5,500. At the be<br />
ginning of 1920 it owed the local bank<br />
about $3,500 and wholesale houses<br />
$2,500. Then they decided to do it<br />
right. Good management was es<br />
tablished. The members were made<br />
loyal. Buying was improved so that<br />
the turnover in the grocery stock was<br />
fourteen times during 1921. The pol<br />
icy of small stock of quickly salable<br />
goods was adopted. A strictly cash<br />
business was established. Now the<br />
society has all its debts paid, has no<br />
accounts receivable, and has a surplus<br />
of $2,500 in the bank. This shows<br />
that the way to save a failing society<br />
is to adopt sound methods.<br />
TAYLOR SPRINGS MINERS'<br />
<strong>CO</strong>-<strong>OPERATION</strong> GROWS<br />
BECAUSE OF STRIKE<br />
The co-operative society at Taylor<br />
Springs, Illinois, reports a remark<br />
able increase in membership, due to<br />
the miners' strike. Taylor Springs<br />
is a typical little mining town, with<br />
a population consisting of Slavs,<br />
Italians, Irish and other foreign na<br />
tionalities. The co-operative had a<br />
very poor start. A bad manager,<br />
credit business, lack of educational<br />
and social activities brought the so<br />
ciety to a standstill. It seemed that<br />
it would be imposible to get another<br />
member to join, or to get the share<br />
holders to patronize their store.<br />
A new, live manager was secured<br />
w'ho rectified the mistakes of the old<br />
manager. An effort was made to do<br />
something in an educational way by<br />
having a speaker of The League ad<br />
dress a meeting. But the meeting<br />
was poorly attended, and no apparent<br />
progress was made.<br />
Then came the coal strike and prac<br />
tically everybody in Taylor Springs<br />
was out of employment. One would<br />
expect that the society would be hard<br />
hit by this condition. Instead, the<br />
membership took an immediate jump.<br />
Whereas there had been only 66 mem<br />
bers in a town with 200 families, the<br />
strike resulted in 60 new members<br />
joining the society. Apparently, the<br />
striking miners had time on their<br />
hands to do some thinking, "and the<br />
result was a stream of applications<br />
for membership, each applicant sub<br />
scribing $25.00 for share capital. So<br />
many applications were received that<br />
it became necessary to apply to the<br />
Secretary of State for permission to<br />
increase the capital stock of the so<br />
ciety.<br />
FIFTY PER CENT SAVINGS AT<br />
ROSEDALE<br />
On the outskirts of Reading, Penn<br />
sylvania, there is a little co-operative<br />
society known as the Rosedale Co<br />
operative Association that has been<br />
rendering a great service to its mem<br />
bership. With a capital stock of only<br />
$2,273, the co-operative store was<br />
able to do a business of $13,529 dur<br />
ing the months of April, May and<br />
June, <strong>1922</strong>, on which a substantial<br />
saving of $1,164 was made. This<br />
saving represents a return of over<br />
50 per cent on the capital subscribed.<br />
From the time of its inception, in<br />
1919, the co-operative has saved<br />
over $8,000 for its membership, or<br />
between .three and four times the<br />
amount of capital invested in the en<br />
terprise.<br />
This society owns its own building.<br />
Its store is well patronized in the vil<br />
lage of Temple, where it is located.<br />
Members of the society are to be<br />
found in the forefront of every move<br />
ment for the elimination of profit.<br />
Through the efforts of the Co-opera<br />
tors, a Labor Lyceum was organized.<br />
This group is affiliated with The Co<br />
operative League.<br />
THE BROOTEN <strong>CO</strong>-OPERATOR<br />
Brooton is a small town in a farm<br />
ing community in Minnesota. The<br />
Farmers' Co-operative l Mercantile<br />
Company has a store there. It .sells<br />
groceries, hardware, dry goods, clo<br />
thing, shoes, crockery, floor cover<br />
ings, and most every thing else. The<br />
society publishes a monthly paper,<br />
"The Brooten Co-operator," which<br />
shows that they have a good co-opera<br />
tive spirit at Brooten. This paper is<br />
interesting; it contains live local<br />
<strong>CO</strong>-<strong>OPERATION</strong> 175<br />
news; and it encourages interest and<br />
loyalty to the store. The editor, Frede<br />
Westergaard, is the manager of the<br />
store. Every society should have<br />
a monthly paper. We commend "The<br />
Brooten Co-operator" as a model.<br />
<strong>CO</strong>EUR D'ALENE KNOWS CAUSE<br />
OF SUCCESS<br />
The Co-operative Society at Coeur<br />
d'Alene, Idaho, made savings of al<br />
most 50 per cent of the capital invest<br />
ed last year. The turnover of this<br />
grocery store was $70,000, on which<br />
savings-returns of more than $2,000<br />
were made for members. This so<br />
ciety has a surplus of $6,000, and car<br />
ries a stock valued at $10,000.<br />
The report of this society asks the<br />
question "Why is this co-operative<br />
store a success while so many fail?"<br />
and answers its question as follows:<br />
"Because the .stockholders are real<br />
co-operatives. Co-operation is the<br />
next step in human endeavor, in civil<br />
ization. It is not necessarily a means<br />
to greater financial gains, though<br />
that naturally follows. It is and must<br />
be the future basis of all exchange<br />
between man and man."<br />
THE FARMERS UNION<br />
It is interesting to learn from<br />
President Barrett of that organiza<br />
tion that the Farmers' Union is<br />
handling more live stock than any<br />
other concern in the country. At<br />
Salina, Kansas, is the finest office<br />
building between Kansas City and<br />
Denver. It is the building of the<br />
Kansas Farmers' Union Fire Insur<br />
ance Company. The yearly turn<br />
over of the Farmers' Union, includ<br />
ing that of the insurance and bank<br />
ing departments, is over a billion<br />
dollars.<br />
GERMAN <strong>CO</strong>NSUMERS TAKE<br />
OVER GOVERNMENT WORKS<br />
A rather unique combination of<br />
interests has been created in the<br />
clothing industry in Germany in the<br />
formation of the Saxon Clothing<br />
Works. This enterprise is started<br />
with a capital of 10,000,000 marks.<br />
Of this, 8,000,000 marks has been
,<br />
176 <strong>CO</strong>-<strong>OPERATION</strong><br />
put in by the Wholesale of the Ger<br />
man Consumers Societies. The<br />
tailors' union has put in 1,000,000<br />
marks, and the state bank of Sax<br />
ony 1,000,000 marks. This enterprise<br />
will take over the state clothing fac<br />
tory which used to supply clothing,<br />
uniforms and shoes for the Saxon<br />
department of the ^ermany army.<br />
The plant is a large one and well<br />
equipped. A lease for thirty years<br />
has been taken on the buildings;<br />
the tools, machinery and adminis<br />
trative apparatus have been bought<br />
outright. This adds another in<br />
stance of the organized consumers<br />
taking over the factories of a politi<br />
cal government.<br />
BACKWARD BRITISH STEP<br />
The Co-operators of Germany<br />
are moving forward to take from the<br />
hands of government as many func<br />
tions as they can master. A sad<br />
contrast to this is the opposite ten<br />
dency in Great Britain. It is a dis<br />
couraging spectacle for Co-opera<br />
tors to see English societies praying<br />
the political government to take<br />
over the enterprises already in the<br />
consumers' hands. With much re<br />
gret Co-operators should witness,<br />
for example, the directors of the so<br />
ciety of Colne, England, making an<br />
effort to induce the town authori<br />
ties to take over their department of<br />
medical supplies. "We believe this<br />
obligation belongs more to the town<br />
council than to our committee, and<br />
we are making an effort to get the<br />
council to accept our stock, and to<br />
apply a scheme for the loan of these<br />
very useful articles to the public."<br />
"The Producer," which is an influ<br />
ential British co-operative maga<br />
zine, approves of this course. It<br />
says: "In the old days co-operative<br />
societies provided evening classes,<br />
libraries, and many of the things<br />
now recognized as the work of mu<br />
nicipal education." It expresses<br />
the belief that this course will be<br />
followed by other societies.<br />
Many British societies have these<br />
sick - room appliances (fountain<br />
syringes, ice bags, bed pans, ther<br />
mometers, wheel chairs, crutches,<br />
etc.) which they loan to their mem<br />
bers at a very small charge. Now<br />
they would give over this function<br />
to the political authorities. There is<br />
a strong movement also advocating<br />
that milk distribution and the coal<br />
supply follow the same course.<br />
This is one of the most discourag<br />
ing manifestations to be seen in the<br />
British Movement. It is very sig<br />
nificant.<br />
The time has come, in the midst<br />
of the decay of the profit-system<br />
and in the presence of the sterility<br />
of political government, for Co-oper<br />
ators frankly and boldly to take the<br />
position that the system of social or<br />
ganization which they represent can<br />
perform all of the functions both<br />
of profit-business and of political<br />
government. No tincture of politi<br />
cal stateism should dissuade us<br />
from this course. We weaken our<br />
force for righteousness when we di<br />
gress from the straight path, and<br />
especially when we yield what we<br />
have created. The great task is the<br />
building of a Co-operative Society<br />
to take the place of the old society.<br />
Co-operation is not a reform move<br />
ment; it is a radical reorganization<br />
of society.<br />
THE FRENCH DISTRUST GOV<br />
ERNMENT<br />
At the last Congress of the French<br />
Federation of Distributive Societies,<br />
resolutions were passed calling for<br />
the establishment, wherever pos<br />
sible, of co-operative societies for<br />
the supply of gas, electricity, water,<br />
etc. This indicates that the French<br />
Co-operators are getting away from<br />
the idea of the socialists that the<br />
political government must be called<br />
upon to do these things.<br />
THE <strong>CO</strong>-OPERATIVE THEATER<br />
OF BERLIN<br />
Berlin has a co-operative theater<br />
organization known as Die Volks-<br />
biihne, with a membership of 260,-<br />
000. This artistic group, supported<br />
and controlled by the theater-goers<br />
themselves, has been meeting with<br />
so much success that they find their<br />
theater accommodating an audience<br />
of 2,500 inadequate to meet their<br />
requirements. Accordingly, they<br />
have acquired another of the large<br />
theaters of Berlin, and are remodel<br />
ling it for performances in the fall.<br />
In order to seat the large audiences<br />
at special performances, it has been<br />
necessary to engage the famous<br />
Reinhard Theater, which holds<br />
5,000 people at a time.<br />
Barely twenty years ago, this co<br />
operative organization started with<br />
a membership of less than 300. The<br />
object of the group was to give a<br />
hearing to plays that were con<br />
sidered too "radical" for the con<br />
ventional stage. They had no thea<br />
ter in the beginning, but rented any<br />
show (house they could find for the<br />
weekly performances they gave.<br />
Some of the most preeminent the<br />
atrical directors, artists and actors<br />
threw themselves into the endeavor<br />
to give expression to the best plays.<br />
The People's Theater grew, until<br />
nightly performances were given.<br />
It was not long before the theater<br />
ran afoul of the censor, who before<br />
the revolution was on the lookout<br />
for "unpatriotic" plays. In spite of<br />
the attempt at suppression, the Peo<br />
ple's Theater grew until it could af<br />
ford to build its own playhouse, one<br />
of the finest in Berlin. And now it<br />
has outgrown this house, and is<br />
forced to acquire a second theater.<br />
Two-thirds of the theater is re<br />
served for members who have sea<br />
son tickets, and one-third of the<br />
seats may be bought by the general<br />
public. Subscribing members re<br />
ceive tickets at lower rates than the<br />
general public. An unusual feature<br />
of this People's Theater is that the<br />
Co-operators elect the Board of Di<br />
rectors from their own membership,<br />
and see to it that they have some of<br />
the best dramatic critics and play<br />
producers in Berlin. The technical<br />
committees on repertory, etc., are<br />
appointed by the directors who care<br />
fully select the best experts. In this<br />
manner, a quarter of a million thea-<br />
<strong>CO</strong>-OPEKATION 177<br />
ter-goejs of Berlin finance and con<br />
trol their own artistic theater, in<br />
the administration of which they<br />
have some of the best artists in<br />
Europe.<br />
FRENCH <strong>CO</strong>-OPERATIVE BANK<br />
OPENED<br />
The marked financial growth of<br />
the French co-operative consumers'<br />
societies during the past few years<br />
has resulted recently in the creation<br />
of an independent co-operative bank<br />
with members among the con<br />
sumers' co-operatives. Previous to<br />
that time, the bank was conducted<br />
by a department of the French Co<br />
operative Wholesale Society. The<br />
growth of the business made it<br />
necessary to create an independent<br />
organization, which, however, is<br />
controlled by the various local co<br />
operative societies. Not only will<br />
the new bank take care of the funds<br />
of the wholesale society, and of the<br />
local co-operatives, but it will give<br />
financial assistance to needy co<br />
operatives.<br />
When the bank was first opened<br />
as a part of the C. W. S., thirty-nine<br />
local societies had organized 139<br />
subsidiary deposit funds in which<br />
1,807,000 francs were accumulated<br />
for deposit in the central bank.<br />
At the end of 1921, the number of<br />
subsidiary funds of the local socie<br />
ties had grown to 385, and the capi<br />
tal to 16,287,000 francs. By April<br />
30, <strong>1922</strong>, there were 27,000 ac<br />
counts in the Co-operative Bank, in<br />
cluding the Wholesale's deposits, re<br />
tail society deposits, and individual<br />
banking accounts. Deposits of 61,-<br />
184,000 francs were on hand. The<br />
turnover of the bank during the fi<br />
nancial year 1921 amounted to over<br />
one billion francs.<br />
The independent co-operative<br />
bank was created in May, <strong>1922</strong>,<br />
shares being owned by the whole<br />
sale and retail societies. The capi<br />
tal of the bank is to be used for<br />
granting credits to the wholesale<br />
society and retail co-operatives af<br />
filiated with the national federation,<br />
for discounting bills drawn by co-
178 <strong>CO</strong>-<strong>OPERATION</strong> <strong>CO</strong>-<strong>OPERATION</strong> 179<br />
operative societies, and for granting<br />
loans on securities and advances on<br />
commodities.<br />
The by-laws of the new bank pro<br />
vide for the payment of 6 per cent<br />
interest on paid up capital. The<br />
remainder of the profits are divided<br />
into two parts. One will go into a<br />
reserve fund. The other will be<br />
distributed among the member so<br />
cieties in proportion to the interest<br />
they have had to pay on credits pro<br />
vided by the bank; in other words,<br />
to the borrowers or consumers of<br />
the funds.<br />
<strong>CO</strong>NGRESS OF CANADIAN <strong>CO</strong><br />
OPERATIVE UNION<br />
The Co-operative Union of Cana<br />
da held it annual congress at Woodstock,<br />
Ontario, September 19 and<br />
20. At the close of the Canadian<br />
Co-operative Congress, the annual<br />
Conference of the Ontario Societies<br />
took place.<br />
Co-operative societies, labor<br />
unions and interested individuals<br />
were represented at the Canadian<br />
congress. The Co-operative Union<br />
of Canada corresponds to The Co<br />
operative League of the U. S. A.<br />
publisher or through The Co-opera<br />
tive League.<br />
AN ENGLISH SURVEY<br />
A thoughtful and observing Brit<br />
ish journalist of the "Daily News"<br />
staff, Mr. George A. Greenwood,<br />
has written a book entitled "Eng<br />
land To-day." He says the com<br />
munist movement has little to offer<br />
but the letting off of steam. The<br />
revolution does not come. He re<br />
gards the Co-operative Movement<br />
as the most hopeful creation of the<br />
working people. "Their leaders,"<br />
he says, "quiet, painstaking, able,<br />
though in many cases self-educated,<br />
are engaged in laying the founda<br />
tions—and laying them soundly—<br />
of a Co-operative Commonwealth.<br />
Voluntary Co-operation in England<br />
is going down to the economic foun<br />
dation, and on the basis of its ex<br />
tension during the past five years<br />
it will, in 1931, have enrolled the<br />
head of every household in the coun<br />
try." The Millgate Monthly quotes<br />
the author as saying, "Because of<br />
all these things the sensible Eng<br />
lishmen will decline to drink the cup<br />
of despair."<br />
NEW BOOK ON <strong>CO</strong>-<strong>OPERATION</strong> <strong>CO</strong>NGRESS OF GERMAN UNION<br />
The American edition of Profes<br />
sor Charles Gide's book, "Con<br />
sumers' Co-operative Societies" will<br />
be off the press October 20. This<br />
valuable book has Ihitherto been<br />
available in only the original<br />
French, and a British edition. The<br />
American edition was prepared by<br />
Cedric Long, with all figures brought<br />
up to <strong>1922</strong>. American examples are<br />
cited throughout, and the book con<br />
tains a chapter on the Co-operative<br />
Movement in the United States.<br />
The author, Charles Gide, is Pro<br />
fessor of Political Economy in the<br />
Faculty of Laws, University of Paris,<br />
and is one of the most prominent<br />
figures in the French Co-operative<br />
Movement.<br />
Tihe American edition is published<br />
by Alfred A. Knopf, New York,<br />
contains 304 pages, and sells for<br />
$3.00. It may be obtained from the<br />
The 19th Congress of the Central<br />
Federation of German Distributive<br />
Co-operative Societies (Zentral-Ver-<br />
band deutscher Konsumvereine) and<br />
the 28th General Meeting of its<br />
Wholesale Society (Grosseinkauf s-<br />
gesellschaft deutscher Konsumver<br />
eine) were iheld at Eisenach from<br />
19 to 22 June.<br />
The annual report for the year <strong>1922</strong><br />
shows the development of the Cen<br />
tral Federation and the Wholesale So<br />
ciety from the year 1903, when the<br />
Central Federation was founded, to<br />
31 December, 1921. The number of<br />
.societies affiliated to the Federation<br />
rose during that period from 666,<br />
with 573,085 members, to 1,337, with<br />
2,834,043 members. Their turnover<br />
rose from 131,786,107 marks or an<br />
average of 230 marks per member to<br />
5,182,748,988 marks or 1,829 marks<br />
per member, their own production<br />
from 12,708,668 marks or 22 marks<br />
per member to 737,131,449 marks or<br />
260 marks per member. During the<br />
same period the staff employed by<br />
the societies increased more than five<br />
fold, from 6,440 to 37,545.<br />
The growth of the Wholesale So<br />
ciety from 1903 to 1921 is shown by<br />
the increase of the number of work<br />
ers employed from 197 to 3,139. The<br />
number of societies affiliated to the<br />
Wholesale Society increased from<br />
305 to 1,026. The value of their trans<br />
actions with the Wholesale increased<br />
from 26,445,889 marks to 2,406,982,-<br />
699 marks. The average patronage<br />
per society increased from 86,708<br />
marks to 228,835.<br />
Of the total value of transactions<br />
for 1921, 234,784,773 marks, or 228,-<br />
835 marks per society, represents the<br />
value of the society's own production.<br />
The Publishing Society of German<br />
Distributive Co-operative Societies,<br />
which employed 8 persons in 1903,<br />
employed 665 on 1 January, <strong>1922</strong>, and<br />
has become one of the largest publish<br />
ing businesses in Germany. It has<br />
677 affiliated societies and its turn<br />
over has risen from 186,309 marks<br />
in 1903 to 41,955,899 marks in 1921.<br />
The congress was strongly in favor<br />
of preserving the independence of the<br />
Co-operative Movement and drawing<br />
only upon the resources of the or<br />
ganized consumer. It refused to ap<br />
prove to any resort to accepting fi<br />
nancial assistance from the state or<br />
municipalities. All that the congress<br />
was willing to ask from the state was<br />
the repealing of old laws and the en<br />
actment of new laws that would give<br />
the Co-operators only an equal chance<br />
with profit business. Finally the con<br />
gress demanded that the government<br />
should enact legislation for the pro<br />
tection of the consumer against the<br />
influence exercised by certain large<br />
industrial combinations on prices and<br />
their boycott of the wholesale so<br />
ciety. The "Tarifamt" is a joint<br />
committee, consisting of five repre<br />
sentatives of the central federation<br />
of consumers' societies and five re<br />
presentatives of the trade organiza<br />
tions of the workers, whose duty it<br />
is to secure the observance of labor<br />
contracts and settle differences aris<br />
ing out of them. After hearing its re<br />
port the congress asserted that it<br />
should be the duty and desire of co<br />
operative organizations to serve as<br />
models to other employers in the reg<br />
ulation of wages and working con<br />
ditions. On the other hand it drew<br />
the attention of trade unions both to<br />
the goodwill, of which evidence had<br />
been so frequently given by the co<br />
operative societies, and to the com<br />
pulsion upon them to compete with<br />
private undertakings, and therefore<br />
requested them to refrain under pres<br />
ent economic conditions from de<br />
mands involving too heavy sacrifices,<br />
and to try to obtain for workers in<br />
private undertakings the benefits in<br />
regard to health and safety condi<br />
tions, holidays, pensions, etc., already<br />
enjoyed by the employees of co-opera<br />
tive undertakings.<br />
BELGIAN <strong>CO</strong>NGRESS<br />
In the Belgian Annual Convention<br />
held at Liege, three questions of<br />
importance were discussed. These<br />
were of much interest to the Move<br />
ment. The congress recommended<br />
the establishment of branches in<br />
the country for the sale of special<br />
products necessary for the farmer.<br />
It considered the establishment of<br />
an intensive program of propagan<br />
da and education among the wom<br />
en.<br />
The most exciting question was<br />
that in which was debated the ques<br />
tion of centralization versus decen<br />
tralization—whether a single na<br />
tional co-operative society with<br />
branches was desirable or whether<br />
the present system of federation<br />
with independent local societies<br />
should be maintained. The con<br />
gress decided to appoint a commis<br />
sion which should discuss this ques<br />
tion thoroughly and make a later re<br />
port.
1 'ill<br />
180 <strong>CO</strong>-<strong>OPERATION</strong><br />
VILLA GROVE OWES MUCH TO<br />
ASSOCIATED MAGAZINE<br />
We find the Associated Magazine service<br />
of the League is a great benefit to our<br />
society for the reason that the general in<br />
formation contained in it relating to the<br />
doings of other societies puts "pep" in our<br />
membership and makes them ambitious to<br />
do as well or better.<br />
I could not say just how long we have<br />
had to wait for results but we have had a<br />
great gain in membership since January,<br />
1921, when we started to use this service.<br />
In regard to our plan of handling this serv<br />
ice, I will say that there are about 500<br />
families in this town. We get 600 copies<br />
and make house to house delivery by car<br />
rier, which saves four-fifths of the cost of<br />
postage, and also saves the labor of ad<br />
dressing copies. What copies are left are<br />
mailed to farmers near here, except about<br />
25 copies which are mailed to labor publica<br />
tions and other societies.<br />
Speaking for myself, I am strong for the<br />
League's Associated Magazine service.<br />
J. W. SNIDER, Secretary,<br />
Villa Grove Co-operative Society.<br />
Villa Grove, 111.<br />
LIVINGSTON WANTS EDUCATION<br />
The railway strike has been hard on us,<br />
but we have played safe and will weather<br />
the storm. However, one thing has demon<br />
strated itself and that is we must do stren<br />
uous educational work if we are to make<br />
any kind of progress.<br />
Will you please send me full particulars<br />
concerning the Associated Magazine you is<br />
sue? What have you got in educational<br />
moving pictures?<br />
JAMES D. GRAHAM, Pres.,<br />
Yellowstone Co-operative Association.<br />
Livingston, Mont.<br />
ROCKFORD GAINING<br />
Our society has voted to affiliate with The<br />
Co-operative League and take our place<br />
among the co-operatives of the United<br />
States. So I am enclosing application and<br />
check for membership fee, and also copy of<br />
our by-laws. We cannot say that we are<br />
as yet established beyond any doubt, as we<br />
have to fight very hard for any ground we<br />
can gain. However, we are hopeful that<br />
we will ultimately come out on top.<br />
We have a Ladies' Auxiliary which was<br />
organized eighteen months ago, which is<br />
doing good work. We will make an effort<br />
to have a delegate at the congress in Chi<br />
cago in October.<br />
R. H. YOUNGBERG, Sec'y,<br />
Rockford Co-operatives.<br />
Rockford, 111.<br />
LETTERS<br />
A SOCIETY THAT QUIT<br />
Your letter at hand as to our closing.<br />
There are many obstacles in getting the<br />
people to co-operate, especially now while<br />
times are so tight; our greatest was that<br />
we were unable to get our members to co<br />
operate with the store as they should. . . .<br />
Some were able to pay cash and refused to<br />
do so because other merchants told them<br />
untruths about our store and they never<br />
investigated anything they heard—just<br />
talked it to everybody instead of coming to<br />
us to find out.<br />
We had a few loyal members that did all<br />
they could to help the store, but not<br />
enough.<br />
Our Board of Directors decided, after<br />
looking through the matter, that it was bet<br />
ter to close and give the money to stock<br />
holders. We started four years ago with<br />
thirteen hundred dollars, have already paid<br />
out sixteen hundred in dividends, and will<br />
have near on to two thousand dollars when<br />
I get through selling out, so we are not in<br />
a bad fix, after all, though we lost about<br />
eight hundred dollars last year.<br />
CAYCE <strong>CO</strong>-OPERATIVE STORE,<br />
Cayce, S. C.<br />
There is a reason for every failure. Why<br />
did this society quit business?<br />
Here is a pathetic case. A society started<br />
four years ago with $1,600 and is now<br />
selling out for $4,000, all for lack of edu<br />
cation.<br />
CHINESE GIVE THANKS FOR<br />
BLESSINGS<br />
Many thanks for your early reply and<br />
kindness in sending us so many copies of<br />
pamphlets and a list of books, some of which<br />
we already have, and the others we are<br />
going to order from you. Nww we send<br />
herewith a money order for $1.00 in gold<br />
to you for the subscription for <strong>CO</strong>-OPERA<br />
TION.<br />
Being so much grateful for your good<br />
advice, which it seems to us may be surely<br />
regarded as a guiding force like that of the<br />
North star, we are going to adopt that prin<br />
ciple as advised. But we are fain to inform<br />
you that our society is as yet in a youth<br />
stage and that we are now but applying<br />
ourselves to the close of the work of propa<br />
ganda, having not reached to the practical<br />
field yet.<br />
Hoping to get golden counsels and helps<br />
from you very often, we are, etc.<br />
The Ping Ming Co-operative Association.<br />
Kiang-Wan, Shanghai, China.<br />
T<br />
<strong>CO</strong>-<strong>OPERATION</strong><br />
PUBLICATIONS<br />
OF THE <strong>CO</strong>-OPERATIVE LEAGUE<br />
HISTORICAL p«* Copy Per 100<br />
3. Story of Co-operation . ................................................^ .10 $6.00<br />
7. British Co-operative Movement ........................................ .10 6.00<br />
10. A Baker and What He Baked (Belgian Movement)...................... .05<br />
38. Co-operative Consumers' Movement in the United States............... .05 4.00<br />
39. Consumers' Co-operative Societies in N. Y. State, (Published by Con<br />
sumers' League) .................................................. .10<br />
TECHNICAL<br />
4. Hew to Start and Run a Rochdale Co-operative Society.................. .10 4.00<br />
5. System of Store Records and Accounts................................ .50<br />
6. A Model Constitution and By-Laws for a Co-operative Society........... .05 2.50<br />
8. Co-operative Education. Duties of Educational Committee Defined..... .10<br />
9. How to Start a Co-operative Wholesale................................ .10<br />
27. Why Co-operative Stores Fail .............. .......................... .02 1.00<br />
2. Co-operative Store Management ...................................... .10<br />
14. How to Start and Run a Women's Guild................................ .05<br />
16. How to Organize a District Co-operative League ........................ .10<br />
MISCELLANEOUS<br />
16. Model Co-op State Law ............................................... .10<br />
17. Syllabus for Course of Lectures, with References and Bibliography.... .25<br />
46. Producers' Co-operative Industries ................................... .10<br />
11. Control of Industry by the People Through the Co-operative Movement... .10<br />
12. Credit Union and Co-operative Store.................................. .05 1.75<br />
34. Co-operative Movement (Yiddish) .................................... .02 1.25<br />
43. Co-operative Housing ................................................. .10<br />
42. Co-op Homes for Europe's Homeless ................................. .10<br />
ONE-PAGE LEAFLETS<br />
(One cent each; 50 cents per 100; $2.50 per 600; $4 per 1,000)<br />
(1) Principles and Aims of The Co-operative League; (17) Do You Know why You Should Be a<br />
Co-operator; (20) Why Loyalty Is Necessary; (21) Cost and Crime «f Credit; (22) A Real<br />
Co-operator; (25) Resolutions Adopted by A. F. of L.; (26) Factory Workers Cc-cperate!;<br />
(28) Do You Know About Co-operation in Europe?; (40) Have You a Committee on Educa<br />
tion and Recreation?; (44) What Is the Co-operative Movement?; (45) Schools and<br />
Stores; (47) A Man's Right to a Job; (48) Tips to Co-operators; (49) Think It Over.<br />
MONTHLY PUBLICATIONS<br />
<strong>CO</strong>-<strong>OPERATION</strong>—(In bundle lots, $7.50 per hundred). Subscription, per year......... .$1.00<br />
HOME <strong>CO</strong>-OPERATOR, 4 pages ................................................ $1 per 100<br />
INTERNATIONAL <strong>CO</strong>-OPERATIVE BULLETIN (Pub. by The I. C. A.)...... .per year, $1.50<br />
BOOKS<br />
The following books are recommended as containing the best discussions of the modern<br />
Co-operative Movement. They may be ordered through The League:<br />
Bubnoff, J. B.: The Co-operative Movement in Russia, 1917.......................... .$1.26<br />
Faber, Harald: Co-operation in Danish Agriculture, 1918.............................. 2.76<br />
Flanagan, J. A.: Wholesale Co-operation in Scotland, 1920............................ 2.00<br />
Gebhard, Hannes: Co-operation in Finland, 1916...................................... 2.00<br />
Gide, C.: Consumers' Co-operative Societies, 1921...................................... 2.50<br />
Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, $2.00; paper<br />
bound ........................................................................... .60<br />
Howe, Fred C.: Denmark, a Co-operative Commonwealth, 1921......................... 2.00<br />
Maxwell, Wm.: History of Co-operation in Scotland, 1910.............................. 2.00<br />
Nicholson, Isa: Our Story ............................................................ .26<br />
Powell, G. Harold: Co-operation in Agriculture. Macmillan ........................... 1.50<br />
Redfern, Percy: The Story of the C. W. S............................................. 2.00<br />
Redfern, Percy: The Consumers' Place in Society, 1920............................... 1.00<br />
Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918...................... 1.50<br />
Smith-Gordon: Co-operation in Many Lands, 1920..................................... 1.50<br />
Sonnichsen, Albert: Consumers' Co-operation, 1919. Cloth bound, $1.75; paper bound... .76<br />
Stolinsky, A.: The Co-operative Movement. In Yiddish................................ 1.00<br />
Webb, B. and S.: The Consumers' Co-operative Movement, 1921........................ 5.00<br />
Webb, Catherine: Industrial Co-operation, 1917 ...................................... 1.50<br />
Woclf, Leonard: Co-operation and the Future of Industry ........................... 1.50<br />
Woolf, L.: Socialism and Co-operation ............................................... 1.50<br />
"The Co-operative Consumer" and "Co-operation," III (1917), VI (1920), VII (1921).... 1.25<br />
Transactions of Second American Co-operative Convention, 1920....................... 1.00<br />
The People's Year Bock, <strong>1922</strong>...................................................... .76<br />
(Ten cents postage should be added for books which cost more than $2.00, and five cents<br />
for the smaller books.)
THE <strong>CO</strong>-OPERATIVE LEAGUE<br />
(MeMber of The International Co-operative Alliance)<br />
167 West 12th Street, New York<br />
An educational organization (or teaching the history, principles, methods and aims of the<br />
Co-operative Movement and for the promotion of Co-operation in the United States.<br />
Join The League and thus help promote the educational work of the Co-operative<br />
Movement. Individual Membership, $1.00 a year. Subscribe for <strong>CO</strong>-<strong>OPERATION</strong>,<br />
the Monthly Magazine of The League, and keep in touch with the Movement.<br />
•&^ ninr,nA B_ j » fnr. Subscription for <strong>CO</strong>-<strong>OPERATION</strong>, $1.00.<br />
Enclosed find $........... lor Membe?sWp in The LEAGUE, $1.00.<br />
Name...<br />
Address.<br />
Date....<br />
Co-operative Central Exchange<br />
Wholesale Grocers and Jobbers,<br />
Bakers<br />
We supply goods to Co-operattve Societies ONLY<br />
We are owned and controlled by Co-operative<br />
Societies.<br />
We are organized to enable Co-operative Societies<br />
to do collectively what they cannot do Indi<br />
vidually.<br />
Co-operative Central Exchange<br />
Offices, Warehouses and Plant:<br />
Winter Street and Ogden Ave.,<br />
SUPERIOR, WIS.<br />
Co-operators' ltd. Mutual Fire Insurance Co.<br />
Is now writing Insurance In State of Wisconsin.<br />
The Canadian Co-operator<br />
Brantford, Ontario,<br />
Canada<br />
The ergan of the Canadian Co-opera<br />
tive Movement, owned by and con<br />
ducted tinder the auspices of The<br />
Co-operative Union of Canada.<br />
Published monthly;<br />
7Sc per annum<br />
MOVING PICTURES<br />
and<br />
Stereopticon Lectures<br />
may be rented from<br />
THE <strong>CO</strong>-OPERATIVE LEAGUE<br />
167 West 12th St., New York City<br />
1. "Soite Examples of English Co-operation."<br />
Moving pictures of factory processes (two<br />
reels) . ..............................-S5.00<br />
S. "Co-operation In the United States."<br />
With 63 Stereopticon views . .......... .(3.00<br />
S. "The Co-operative Movement In Rnsssla."<br />
With 36 colored Stereopticon views. ...$3.00<br />
Co-operation in Scotland<br />
In no part of the world la Co-operation further<br />
developed, or more successfully practised than In<br />
Scotland. If you wish to keep In touch, read<br />
"The Scottish Co-operator"<br />
(Published Weekly)<br />
Subscription: Year 12 sh.; half-year, 6 sh.<br />
Address, 119 Paisley Road,<br />
Glasgow, Scotland<br />
THE PRODUCER<br />
Issued Monthly Price 3d.<br />
If yon want to keep in touch with<br />
business, organization, administra<br />
tive affairs, and problems of the<br />
British Co-operative Movement,<br />
read THE PRODUCER.<br />
Published by<br />
Co-operative Wholesale Society, Inc.<br />
1 Balloon Street, Manchester.<br />
Post free 4 sh. 6d. a year.<br />
The Trade and Technical Organ of British<br />
Co-operation.<br />
THE HOME <strong>CO</strong>-OPERATOR<br />
A four-page magazine for<br />
use in co-operative societies.<br />
Issued monthly, in bundles, $1 per hundred.<br />
Published by<br />
The Co-operative League<br />
Publishing Office, Willimantic, Conn. Al<br />
bert Sonnichsen, Managing Eitor.<br />
^^••^0**T*JB<br />
(MOTION<br />
A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in vol<br />
untary association, produce and distribute for their own use the things they need<br />
Published monthly by The Co-operative League, 167 West Twelfth Street, New York City,<br />
J. P. Warbasse, Editor. Price, $1.00 a year. Ent«red as second class matter, December 19,<br />
1917, at the Post Office at New York, N. Y., under the Act of March 3, 1879.<br />
Vol. <strong>VIII</strong>, No. 11 NOVEMBER, <strong>1922</strong> 10 Cento<br />
"TRUST BUSTING"<br />
AN EXPLODED CURE-ALL<br />
How many of us remember the<br />
rejoicing that went up from the<br />
camp of the "progressives" and "lib<br />
erals" in 1911 when the United States<br />
Supreme Court sternly ordered the<br />
Standard Oil Company to dissolve?<br />
The Supreme Court, after profound<br />
deliberation, decided that the Stan<br />
dard Oil was a monopoly in restraint<br />
of trade. It decreed that this indus<br />
trial octopus should sever its various<br />
tentacles and set them each up in<br />
business for themselves. This decree<br />
of the Supreme Court was hailed as<br />
the panacea that would save the coun<br />
try from the perils of monopoly. The<br />
public was told that an energetic De<br />
partment of Justice would sweep<br />
them out of court dissolved into<br />
harmless fragments. "Right think<br />
ing people" exulted. The millennium<br />
seemed to be at hand.<br />
And now let the historian record<br />
the facts which have followed in the<br />
wake of the famous decision of the<br />
Supreme Court. The Standard Oil<br />
Company dissolved itself into almost<br />
as many fragments as there are<br />
states. Each company had its set<br />
of high-salaried officers and its over<br />
head expenses for maintaining offices.<br />
But lo and behold, the several tenta<br />
cles, obedient to some common urge,<br />
refused to compete with each other.<br />
The price of gasoline and other oil<br />
VITAL ISSUES<br />
products continued to rise. And now,<br />
eleven years since the famous disso<br />
lution, it is announced that the<br />
"Standard Oil Group" has paid over<br />
one billion dollars, $1,010,703,594, to<br />
its lucky stockholders in cash divi<br />
dends, since the potent decree of the<br />
Supreme Court was issued.<br />
This colossal figure does not by any<br />
means represent all the toll extracted<br />
from the public by the dissolved com<br />
pany. For one of these struggling<br />
little fragments, the Standard Oil<br />
Company of New Jersey, not only<br />
paid more than a quarter of a billion<br />
dollars in cash dividends since 1911,<br />
but it was able to pile up undistrib<br />
uted profits of $592,021,632, "earned"<br />
on a capital stock of $100,000,000.<br />
The treasury of the company became<br />
so swollen that it was decided in<br />
October, <strong>1922</strong>, to declare a 400 per<br />
cent stock dividend to the sharehold<br />
ers. This followed a stock dividend<br />
of 2,900 per cent to the shareholders<br />
of the S. O. Company of Indiana; a<br />
2,625 per cent stock dividend of the<br />
Waters Pierce Company, a 900 per<br />
cent stock dividend of the Continen<br />
tal, both Standard Oil subsidiaries;<br />
a 400 per cent stock dividend of the<br />
S. O. Company of New York, and va<br />
rious other paltry dividends of three<br />
or four hundred per cent to the stock<br />
holders of other Standard Oil com<br />
panies.<br />
The United States is more in the<br />
grip of this gigantic monopoly than
182 <strong>CO</strong>-<strong>OPERATION</strong><br />
ever before. Not a single one of the<br />
hosts of those who once advocated<br />
"trust busting" is on hand to observe<br />
the phenomenal prosperity enjoyed<br />
by this "dissolved" business. Trust<br />
busting has turned out to be a boom<br />
erang that apparently had no other<br />
effect than hitting the public in the<br />
neck.<br />
May we urge upon the valiant re<br />
formers who once advocated the use<br />
of the "big stick" against monopolies,<br />
that ownership and control by the<br />
consumers of those industries essen<br />
tial to the welfare of the consumers<br />
is a surer hope of freeing the people<br />
from the evils of monopoly? H. R.<br />
CAN <strong>CO</strong>-<strong>OPERATION</strong> DEFEAT<br />
MONOPOLIES?<br />
At the last British Co-operative<br />
Congress, Mr. G. Riddle submitted an<br />
important paper, in which he exam<br />
ined "The Financial Position of the<br />
Co-operative Movement in Relation<br />
to New Forms of Administration in<br />
Retail Trade." In this paper Mr.<br />
Riddle proved that the Co-operative<br />
Movement in Great Britain is<br />
stronger today than it was before the<br />
war. He threw new light on the<br />
way in which business is being mon<br />
opolized by capitalistic trade com<br />
panies. Not only is the business of<br />
retail shop-keeping passing rapidly<br />
into the hands of a few chain store<br />
companies but great productive and<br />
transport undertakings are also<br />
owned and controlled by a few big<br />
trusts and combines.<br />
Can the Co-operative Movement<br />
meet and defeat organized capital<br />
ism? To this question Mr. Riddle an<br />
swers, "Yes; Co-operation can over<br />
come the powers opposed to it if its<br />
members are wise enough to adopt a<br />
sound financial policy." He proposes<br />
that every society shall increase its<br />
reserves, and so create a great fund<br />
of collectively-owned capital upon<br />
which no interest will be payable, and<br />
which could be used to develop co<br />
operative manufacture and agricul<br />
ture, and thus enable Co-operators<br />
to produce all they need themselves,<br />
and so become wholly independent of<br />
the whole capitalist world. Already<br />
some European co-operatives are rec<br />
ognizing these facts. They are pre<br />
paring for the time when government<br />
currency has come to naught and they<br />
must produce everything for them<br />
selves.<br />
BE A <strong>CO</strong>RPORATION<br />
A plain, ordinary, two-legged man<br />
pays tax on his total income. Out of<br />
that income he has to feed, clothe and<br />
house himself and keep himself fi<br />
nanced and fit. After he has paid<br />
his expenses and tax he usually has<br />
nothing left. That is: there is no<br />
profit. But the corporation does not<br />
pay income tax. It earns all the in<br />
come it can. Then it feeds, clothes<br />
and houses itself, pays all kinds of<br />
salaries to its officials, puts away a<br />
good, big sum for depreciation, re<br />
pairs, etc., and if there is anything<br />
left, that remainder is taxed by the<br />
government. In the case of a man,<br />
the income is taxed. In the case of a<br />
corporation, the income, minus all<br />
possible expenses is taxed.<br />
Basil M. Manley has called atten<br />
tion to this fact and suggested that<br />
each citizen should incorporate him<br />
self! At least one thing is evident:<br />
we have a government for corpora<br />
tions rather than for human beings.<br />
Just here is where Co-operators<br />
can take advantage of a game that<br />
was never intended for them. The<br />
more of our capital we have in the<br />
co-operative society and the more of<br />
the business of life we carry on<br />
through the society the more capital<br />
do we keep out of the class which is<br />
taxable as individual income. For<br />
example, the savings-returns from<br />
the co-operative society are not tax<br />
able as income. But dividends from<br />
any other corporation are taxable.<br />
Pass this word along even to the rich<br />
and advise them also to put their<br />
money in the co-operatives!<br />
ON HAVING FUN<br />
Life is a serious business. Nobody<br />
ever gets out of it alive. We should<br />
have as much fun as we can while we<br />
are at it.<br />
An ancient notion has it that work<br />
is the main business of life. It is no<br />
such thing. Men work in order to get<br />
the means to purchase happiness.<br />
Twice happy is he who finds joy in<br />
his work, for he earns his living while<br />
at play. These souls are rare. But<br />
all work should be of this nature; and<br />
some day, when the world becomes<br />
civilized, it will be.<br />
In the mean time, while work is<br />
drudgery, we can be having some fun<br />
outside of working hours. The Eng<br />
lish C. W. S. has a stodgy old motto:<br />
"Work and wait." That is about the<br />
same as saying, "Work and go to<br />
sleep." It makes a negative use of<br />
the leisure time. The spirit of the<br />
Co-operative Movement would be bet<br />
ter expressed in saying, "Work and<br />
enjoy." The work should win some<br />
thing. It should guarantee some<br />
thing. The old work-and-pray busi<br />
ness does not satisfy.<br />
The Trade Union Movement takes<br />
care of the man at work. The Co<br />
operative Movement shows him how<br />
to spend his earnings, and in doing<br />
that it also shows him that man does<br />
not live by bread alone. Trade union<br />
ism helps the man to buy more leis<br />
ure with his labor; Co-operation<br />
shows him what to do with his leis<br />
ure after he gets it. The "houses of<br />
the people" and the recreation places<br />
owned by co-operative societies,<br />
where the members go to seek pure<br />
joy, are beacons of great light. The<br />
picnics, parties, dramatic clubs, sing<br />
ing societies, orchestras and debat<br />
ing societies are all in the legitimate<br />
field of Co-operation.<br />
The Co-operators in the mining dis<br />
tricts of Wales are going in for lawn<br />
tennis. Here is a game that has been<br />
cultivated especially by the leisure<br />
class. It is a great satisfaction to<br />
see the young Welsh miner come<br />
home from the pit at 4 o'clock, wash<br />
up, put on a clean soft shirt and flan<br />
nel trousers, take a little light re<br />
freshment and sally out to the tennis<br />
courts on the artistic and well-kept<br />
<strong>CO</strong>-<strong>OPERATION</strong> 183<br />
grounds of the co-operative society.<br />
Tennis is one of the best games we<br />
have. Why should it be regarded as<br />
the especial privilege, of the few?<br />
The miners were at first prejudiced<br />
against the game. Now they are de<br />
veloping some good players, and the<br />
women and girls of the mining dis<br />
tricts play too.<br />
Our co-operative societies should<br />
be devoting thought to joyful, health<br />
ful use of leisure time.<br />
REPUBLICANS AND<br />
DEMOCRATS<br />
"Dishonest, incompetent to govern,<br />
without vision at home or abroad,<br />
without any domestic program what<br />
soever, and without men of any<br />
moral or political stature—this sums<br />
up Democrats as well as Republicans.<br />
The only question of importance is<br />
how much longer the American peo<br />
ple are going to be stupid enough<br />
sheep to stand it."<br />
This is not the utterance of a so<br />
cialist soap-boxer. It is not an ex<br />
tract from an anarchist's essay. It<br />
is a quotation from a leading editorial<br />
article in "The Nation," a substantial<br />
old weekly publication founded in<br />
1865 and for fifty-seven years occu<br />
pied in trying to patch up and make<br />
workable the present economic sys<br />
tem. Now, like everybody else, the<br />
editors are waking up to the fact that<br />
the profit motive as the purpose of<br />
the industrial life of a people does<br />
not work. It fails, it is going to<br />
pieces. And men who are occupied<br />
in trying to make it work, and who<br />
can not see that it is an unsound<br />
system, are either deficient morally<br />
or intellectually.<br />
An economic system based on ser<br />
vice rather than profit will some day<br />
take the place of the thing we now<br />
have. It is waiting to be born. Then<br />
men will wonder why the people of<br />
the nineteenth century were so do<br />
cile and tolerant of conditions that<br />
were both unreasonable and degrad<br />
ing.
184 <strong>CO</strong>-<strong>OPERATION</strong><br />
CHAIRMAN'S ADDRESS<br />
By J. P. WARBASSE<br />
At the Opening of the Third Congress of the Co-operative League, at<br />
Chicago, Illinois, October 26, <strong>1922</strong><br />
Delegates, Fellow Co-operators<br />
and Friends:<br />
We are assembled here at this<br />
Third Co-operative Congress in a<br />
time of stress. An economic system,<br />
which has existed since the feudal<br />
period, is breaking down. On every<br />
side are the signs of its decay. A<br />
war which was to end war and pro<br />
mote democracy has promoted war<br />
and demoted democracy. The old<br />
rulers of the world, the diplomats,<br />
financiers and politicians, seem sterile<br />
of constructive ideas and ideals. Our<br />
own country was once the land of<br />
liberty and the haven of refuge of the<br />
oppressed of the world. It has now<br />
fallen in the grip of forces with such<br />
hunger for profits that they would<br />
even destroy the very right of work<br />
ing men to unite with their fellow<br />
workers to better their lot. The<br />
farmers of the United States once<br />
owned their farms. Today the land<br />
is slipping from their hands and leav<br />
ing them bereft and deeply in debt to<br />
the bankers. No country—not the<br />
Eoman Empire nor the Kingdom of<br />
France, nor the Empire of Eussia—<br />
ever moved more surely to its eco<br />
nomic doom than these United States.<br />
The suffering people of the world<br />
turn their faces in vain toward their<br />
seats of government, the mad rush<br />
toward chaos goes on; while we as<br />
semble here for a little while to lay<br />
some stones in the foundation of a<br />
new and better civilization.<br />
I tell you, my friends and fellow<br />
workers, this modest assemblage here<br />
means more for the solution of the<br />
world's distressing problems—offers<br />
more for the cause of human liberty<br />
and justice and peace—than do all<br />
the assemblages of emblazoned rulers<br />
that ever sat in the marble halls of<br />
Versailles, Washington, Genoa, or<br />
The Hague; and I call upon posterity<br />
to bear witness to the assertion.<br />
No country of the world, however,<br />
has ever entered upon the road of<br />
great progress in Co-operation until<br />
its scattered co-operative elements<br />
were united into a sound national or<br />
ganization. The great forward im<br />
petus in every country has never<br />
come until its societies federated to<br />
create a central union for mutual pro<br />
tection and education. This Congress<br />
is in response to an awakening un<br />
derstanding of this need on the part<br />
of the more successful and socially<br />
conscious societies of the United<br />
States. These naturally are the so<br />
cieties which best understand the im<br />
portance of co-operative education.<br />
One thing we know: for nearly a<br />
century people in this country have<br />
been attempting to create co-opera<br />
tive societies. The hunger for Co<br />
operation is strong. Success has<br />
crowned much of this earnest effort.<br />
But on the other hand, failure has<br />
often been the fate of many. In no<br />
country in the world, perhaps, have<br />
so many well meant attempts, backed<br />
by enthusiasm and high ideals, gone<br />
down. A study of these attempts<br />
shows that society after society has<br />
failed to succeed because of exactly<br />
the same mistakes, unconscious of<br />
the fate of the others. This condi<br />
tion continues today. All over the<br />
United States, honest and earnest<br />
groups of people are attempting to<br />
conduct co-operative societies by<br />
methods which spell failure. In their<br />
isolation they are destined to suffer<br />
alone the same fate that has visited<br />
countless others, chiefly because they<br />
have not placed their common prob<br />
lems in a co-operative pool with the<br />
other societies of the country.<br />
Two great needs confront the<br />
Movement in the United States: the<br />
need of unity and the need of edu<br />
cation.<br />
In all parts of the country are so-<br />
cieties, affiliated with The Co-opera<br />
tive League, which have sturdily<br />
weathered the storm of economic de<br />
pression and are valiantly moving on<br />
toward greater success. Among them<br />
are such societies as Roseland and the<br />
Bohemian Societies of Chicago;<br />
Sault Ste. Marie, Michigan; the<br />
Franklin of Minneapolis, Waukegan,<br />
Bloomington, Villa Grove, and Staun-<br />
ton of Illinois; Maynard and Fitch-<br />
burg of Massachusetts; the Keystone<br />
of Reading, the Penn Central of Dis<br />
trict No. 2, and Sunbury, of Pennsyl<br />
vania ; the Finnish Trading of Brook<br />
lyn; Our Cafeteria and the Utica So<br />
ciety of New York; the Central Ex<br />
change of Superior, and its affiliated<br />
societies; the Bohemian societies of<br />
Dillonvale, Ohio; the Milwaukee<br />
housing and distributive societies;<br />
and a host of others which constitute<br />
the vanguard of co-operative pro<br />
gress. There has never been a mo<br />
ment when these members of The<br />
League were threatened with failure.<br />
Sound co-operative methods—educa<br />
tion coupled with efficiency—speli<br />
su.cess.<br />
The Co-operative Movement in the<br />
United States has come to a critical<br />
point. The interest in Co-operation<br />
is everywhere aroused. The working<br />
people from one end of the country to<br />
the other feel the need of forming<br />
co-operative societies. Shall they<br />
grope blindly? Shall they duplicate<br />
the errors which others have made?<br />
Shall they, with self confidence, fol<br />
low leaders with fanciful notions that<br />
can lead only to disaster? Shall they<br />
fall victims to the cupidity of self-<br />
seeking schemers who offer great al<br />
lurements ? Or shall they have within<br />
easy reach the instructions and guid<br />
ance that make for success? These<br />
are the pressing questions.<br />
The failure of a co-operative society<br />
is unnecessary. The methods and the<br />
technique for organization and ad<br />
ministration have all been compiled<br />
and standardized. Three-fourths of<br />
a century of information, the product<br />
of experience, is all available. The<br />
great tack is to get this information<br />
to the places where it is needed. The<br />
<strong>CO</strong>-<strong>OPERATION</strong> 185<br />
need is for people who are trained,<br />
with knowledge and experience, to<br />
guide this Movement.<br />
The Co-operative League has col<br />
lected the standardized information<br />
and made it available. If brought to<br />
societies and applied, this standard<br />
ized information spells success. How<br />
to bring together these forces and<br />
set them working for humanity is<br />
the challenge of the day.<br />
I take this occasion to offer a pro<br />
gram of action.<br />
Already there exists a splendid ar<br />
ray of men and women, who are<br />
trained and experienced in Co-opera<br />
tion. These should be taken out of<br />
their limited fields where they are<br />
acting as store managers, organizers,<br />
buyers, auditors and directors, and<br />
made district advisers.<br />
The country should be divided into<br />
districts. In each of these districts<br />
today are men who are capable of<br />
serving as district advisers. They<br />
are already trained and tried. Men<br />
who can be district advisers are ex<br />
perienced Co-operators. They are<br />
able to instruct store managers in<br />
these matters, and to discuss before<br />
societies and boards of directors the<br />
general problems of administration.<br />
Such men should be established in<br />
each district, with salary and trav<br />
elling expenses adequate to his needs.<br />
Part or all of his expenses may be paid<br />
by the local societies receiving his<br />
services, but it should be guaranteed<br />
by the central organization, either<br />
district or national.<br />
For the training of new workers,<br />
educational courses should be pro<br />
vided. After six months of prelimin<br />
ary study of history, economics, busi<br />
ness methods, and the principles of<br />
Co-operation, students should go to<br />
the centers in the districts in which<br />
are societies where practical training<br />
can be given. There they should be<br />
under the local district adviser. A<br />
number of societies in different parts<br />
of the country have already expressed<br />
their willingness to take such student<br />
apprentices. Out of these would come<br />
the trained experts to carry on the
186 <strong>CO</strong>-<strong>OPERATION</strong><br />
administrative and educational work<br />
of the Co-operative Movement.<br />
The cost of carrying out such a<br />
program would be a very small frac<br />
tion of the money that it would save<br />
to the people of this country from<br />
the very beginning. We shall learn<br />
before this Congress is over that the<br />
people of America are daily pouring<br />
a steady stream of money into hope<br />
less or fraudulent enterprises sup<br />
posed to be co-operative. A small<br />
fraction of this money that is for<br />
ever lost would save the rest.<br />
If this program could be put in op<br />
eration it would produce fundamental<br />
and lasting good. The people are<br />
ready, the need is great; all that is<br />
wanting is the money to secure these<br />
substantial results. This is one of<br />
the major problems that confronts<br />
this Congress—how to unite our<br />
forces, to secure the financial support<br />
and united power to bring about fun<br />
damental co-operative education.<br />
Here is a program which would con<br />
stitute the best investment the people<br />
of this country could make at the<br />
present time.<br />
In this, the land of business, where<br />
the laws and customs are dedicated<br />
to the interest of profit-getting, our<br />
task is to build a different kind of<br />
business. We must have people who<br />
are willing to think, and work and<br />
consecrate themselves to this task.<br />
Our co-operative enterprises can suc<br />
ceed only as we develop workers with<br />
understanding of its fundamental<br />
principles and methods. Education<br />
will give us understanding; educa<br />
tion will help us to success. A Co<br />
operative Movement can develop<br />
soundly only as it educates leaders,<br />
teachers, and executives to carry on<br />
its affairs. Only by education can<br />
we guarantee the success of our en<br />
terprises.<br />
Now some thirty countries of the<br />
world have national co-operative<br />
bodies into which the single societies<br />
are united; and these thirty national<br />
organizations are joined into the In<br />
ternational Alliance, with a total of<br />
30,000,000 members.<br />
The Co-operative Movement is the<br />
one great international force, oper<br />
ating in the economic field and in the<br />
lives of the people, which is making<br />
for human brotherhood and for the<br />
emancipation of mankind from the<br />
thraldom of privilege. We, in this<br />
Congress are the builders of the bet<br />
ter society of the future. I believe<br />
that we shall succeed.<br />
"HOW ONE VOTE ONE MEM-<br />
BER" BEGAN<br />
By H. RAPPAPORT<br />
It is generally believed among Co-<br />
operators that the Rochdale Pioneers<br />
were responsible for two revolution<br />
ary innovations which ensure demo<br />
cracy in a co-operative society: viz.,<br />
each member being entitled and lim<br />
ited to one vote; and the requirement<br />
that all votes shall be cast in person,<br />
rather than by proxy. As a matter<br />
of fact, the founders of the Rochdale<br />
society do not deserve credit for any<br />
radical departure from old establish<br />
ed forms of corporate government, in<br />
adopting these two vital principles.<br />
Without desiring to detract from any<br />
of the glory of our co-operative<br />
"founding fathers" (to adopt a Hard-<br />
ingism), it should be stated that the<br />
foregoing democratic provisions are<br />
a part of the basic law of corpora<br />
tions, and had their origin in anti<br />
quity.<br />
Hundreds of years before powerful<br />
profit-making corporations came into<br />
existence, it was the universal prac<br />
tice among corporations in England<br />
to permit each member to have only<br />
one vote, and to count that vote only<br />
if cast in person. These two demo<br />
cratic features which have been re<br />
garded as a revolutionary develop<br />
ment of the co-operative, were in fact<br />
laid down for all corporations, muni<br />
cipal or private, by the common law,<br />
which is the basis of the laws of<br />
Great Britain and the United States.<br />
The leading American case involv<br />
ing the question of the democratic<br />
control of a corporation, is Taylor vs.<br />
Griswold (14 N. J. Law, 222, 27 Am.<br />
Dec 33). Space prevents us from<br />
quoting more than a part of the bril<br />
liant opinion by Hornblower, C. J.:<br />
"The first inquiry, then, is, wheth<br />
er, upon general and common law<br />
principles, the members of any cor<br />
poration have a right, as a matter<br />
of course, to be represented and to<br />
vote by proxy? This question must<br />
be answered in the negative. It is<br />
clear, that when the charter is silent,<br />
and no by-laws have yet been passed<br />
regulating the mode of election and<br />
of voting upon other questions that<br />
may arise in conducting the ordinary<br />
and appropriate business of the cor<br />
poration, the corporators, when law<br />
fully assembled, must be governed by<br />
the rule and privileges that prevail<br />
in all primary assemblies."<br />
A man with one share is as much<br />
a member as a man with fifty.<br />
The decision in the case of Taylor<br />
vs. Griswold clearly held that the<br />
powers of a vote for every share,<br />
and of voting by proxy, are confer-<br />
rable only by legislature and are not<br />
common law powers. Even as far<br />
back as the days of Henry IV, legal<br />
precedents existed holding that the<br />
basic law of corporations gave each<br />
member of a corporation only one<br />
vote, which must be cast in person.<br />
(See 11 Hen. IV, pi. 64.) The first<br />
historical instance of proxy voting<br />
was in the case of the peers of Eng<br />
land, who were permitted to dele<br />
gate to other peers the right to vote<br />
for them in their absence from the<br />
House of Lords. Even this exception<br />
to the general rule did not exist un<br />
til it was sanctioned by the king by<br />
special license.<br />
In the beginning, even such large<br />
profit-making corporations as the<br />
East India Company were governed<br />
according to the basic common law<br />
rules. Later, when these corpora<br />
tions accumulated huge profits from<br />
their exploitation of foreign markets,<br />
large blocks of stock came to be own<br />
ed by a few individuals, who natural<br />
ly desired to control the corporations<br />
themselves. Various expedients were<br />
resorted to by wealthy stockholders,<br />
such as fictitious transfers of stock<br />
to relatives or dummies, who there<br />
by acquired votes which were cast in<br />
<strong>CO</strong>-<strong>OPERATION</strong> 187<br />
accordance with the wishes of the<br />
real owners of the stock.<br />
Corporations began to provide in<br />
their by-laws for one vote for every<br />
share, and for proxy voting. At<br />
first, the courts refused to uphold<br />
these provisions in by-laws, as being<br />
contrary to the basic law of the land.<br />
Especially did the courts frown upon<br />
such by-laws in the case of utility<br />
and other public service corporations.<br />
With the continued growth of large<br />
profit-making associations, corpora<br />
tion laws were enacted legalizing the<br />
undemocratic practices generally in<br />
vogue in private corporations today,<br />
Which permit money instead of men<br />
to control, by providing for a vote<br />
for every share, and for voting by<br />
proxy. The attitude of the courts be<br />
came more sympathetic to the view<br />
of the moneyed interests in corpora<br />
tions, and in the beginning of the<br />
nineteenth century, decisions were<br />
rendered upholding the right of cor<br />
porations to provide in the by-laws<br />
for these practices. But.the basic,<br />
common-law rule of corporations still<br />
requires each member to have one<br />
vote in person, and only where spe<br />
cific authority to the contrary exists<br />
may the old democratic form be cast<br />
aside.<br />
It is not only gratifying to Co-oper<br />
ators to know that the co-operative<br />
features of democratic control are<br />
sanctioned by the common law, but<br />
it is of practical value as well. Groups<br />
which desire to organize co-operative<br />
societies will find in many .states co<br />
operative laws on the statute books<br />
enacting the old common law rules for<br />
the democratic government of cor<br />
porations. Where co-operative laws<br />
do not exist, co-operative corporations<br />
are governed by the ordinary corpora<br />
tion statutes. Unless these statutes<br />
clearly and specifically require each<br />
share to have one vote, and unless<br />
they permit proxy voting, without<br />
giving corporations discretion in these<br />
matters, the basic common law rules<br />
hold, and the corporation may be gov<br />
erned by the democratic principles of<br />
"One vote for every member," and<br />
"No proxy voting."
188 <strong>CO</strong>-<strong>OPERATION</strong><br />
SEEN HERE AND THERE<br />
<strong>CO</strong>-<strong>OPERATION</strong> AND TRADES UNIONS IN AUSTRALIA<br />
By F. J. DUNLEAVY<br />
The struggle for the organization<br />
and integration of the co-operative<br />
consumers' societies in Australia is<br />
but the ebb and flow of the economic<br />
tide and co-operative thought and<br />
education in all countries.<br />
In an effort to obtain reliable infor<br />
mation on co-operative societies in<br />
that country, I wrote to over 100 co<br />
operative consumers' and producers'<br />
societies, sending them a question<br />
naire. Of the co-operative consum<br />
ers' societies that replied, not more<br />
than three of them made the claim<br />
that they were full Rochdale plan co<br />
operative societies, and none of these<br />
expended the two and a half per cent<br />
of their profits for educational co<br />
operative propaganda which is the<br />
recognized minimum i n t h e full<br />
Rochdale plan. The one that did<br />
claim to spend this amount did so in<br />
advertising its wares!<br />
There is one lone co-operative<br />
Credit Bank, in Melbourne. It was<br />
organized in 1905, has an authorized<br />
capital of 5,000 pounds and 2,065<br />
pounds of this capital paid up. Share<br />
holders number 1,369. The dividend<br />
rate is 5 per cent. Total amount<br />
loaned to 1921 was 42,189 pounds;<br />
reserve fund 218 pounds; net profit<br />
for half year, 23 pounds.<br />
The oldest co-operative consumers'<br />
society still operating was organized<br />
in 1864 in Adelaide. The New South<br />
Wales Co-operative Wholesale Society<br />
has a membership of 26 societies.<br />
The capital is 31,781 pounds; reserve<br />
1,473 pounds, and turnover in 1919<br />
was 317,612 pounds. The Balmain<br />
Co-operative Society of New South<br />
Wales is the largest consumers' co<br />
operative society in Australia. It has<br />
a membership of 14,000, a capital of<br />
84,000 pounds, reserve of 4,560<br />
pounds, and a turnover of 425,000<br />
pounds.<br />
In the State of South Australia,<br />
there was a small eight-page co-op<br />
erative newspaper called "The Wheat-<br />
sheaf" run by a small co-operative<br />
consumers' society. This was the<br />
only co-operative consumers' news<br />
paper in the whole of Australia, ex<br />
cept "The Farm," run by the South<br />
Australian Farmers' Union. Further<br />
more, of the four libraries in Sydney,<br />
a city with nearly a million popula<br />
tion, there was not a single co-opera<br />
tive journal of any country on their<br />
list or in the Public Library, The<br />
School of Arts, or the Mitchell Li<br />
brary.<br />
Of the other small co-operative<br />
consumers' societies reporting, 14 in<br />
all, they had a total membership of<br />
18,569, a capital of 45,927 pounds, re<br />
serves of 9,214 pounds, and turnover<br />
of 288,547 pounds.<br />
The Australian co-operative con<br />
sumers' societies give little attention<br />
to ideals, but talk much of dividends<br />
and bonus payments amounting to<br />
from five to fifteen per cent. The<br />
trades unions are actually opposed to<br />
co-operative societies. Out of 726,000<br />
members of trades unions, in a popu<br />
lation of little over five million souls,<br />
there is not a single union which car<br />
ries on a Rochdale plan co-operative<br />
society, and only one, the Railway<br />
Employees of New South Wales, that<br />
claim to run a co-operative society for<br />
its members. A member of this union<br />
co-operative stated he paid two shill<br />
ings and sixpence a month to the so<br />
ciety (about fifty cents) and the so<br />
ciety purchased goods and sold them<br />
to the subscribers at cost with over<br />
head charges of rent and service, etc.,<br />
added, leaving no profit. Crude as<br />
the idea is, it deserves credit for be<br />
ing the first union to take up the<br />
co-operative idea of buying and sell<br />
ing.<br />
There are two reasons why the<br />
Australian natives in the Australian<br />
trades unions are against Co-opera<br />
tion. One is that this generation,<br />
like the Americans, are too near the<br />
pioneer spirit which developed indi-<br />
vidualism which chafes at restraint<br />
and discipline. The other reason is<br />
that the unions, in the past, thought<br />
they could achieve an economic<br />
change by political pressure from the<br />
labor party. The labor party has<br />
been operating in the Australian par<br />
liaments for twenty-five years. At<br />
times they have had a full labor party<br />
cabinet in the state and federal par<br />
liaments. Notwithstanding this po<br />
litical representation the chairman of<br />
the wage commission appointed by<br />
the federal government, after exhaus<br />
tive investigations, stated that one-<br />
third of the workers of Australia<br />
were on the bread-line and another<br />
third were near the bread-line. Trades<br />
unionists must recognize in the face<br />
of their past failures that trades<br />
unions and political parties are neces<br />
sary, but they are only auxiliaries to<br />
Co-operation to rectify the present<br />
economic conditions. All three are<br />
necessary, each in their own line, but<br />
working together. The trades unions<br />
are a fighting machine—the advance<br />
guard that march out and take the<br />
advance posts. The political labor<br />
party are the reserves that follow up<br />
and hold the territory captured, while<br />
the unions are reconnoitering ahead<br />
for a further advance. The co-opera<br />
tive societies are the supply depots<br />
for maintaining both the unions and<br />
the political labor party in their work.<br />
The agricultural co-operative so<br />
cieties in Australia are run on busi<br />
ness lines and are well up to date.<br />
There are several of these and they<br />
are the largest and most powerful ex<br />
pressions of Co-operation. The South<br />
Australian Farmers' Union Limited<br />
was organized in 1888 with a mem<br />
bership of 103 and a capital of 800<br />
pounds. The present membership is<br />
14,300, paid-up capital 424,000 pounds<br />
and estimated turnover 10,000,000<br />
pounds. The basis of membership is<br />
a minimum ten shares and a maxi<br />
mum of 1000.<br />
The Australian Producers' Whole<br />
sale Co-operative Federation, Lim<br />
ited was registered in 1920. This is<br />
a federation of eleven co-operative<br />
producers' societies whose annual<br />
<strong>CO</strong>-<strong>OPERATION</strong> 189<br />
turnover is 30,000,000 pounds. The<br />
object of the Federation is collective<br />
purchasing, on behalf of all the so<br />
cieties, the commodities and merchan<br />
dise required and used by the pri<br />
mary producers, and the establish<br />
ment of a large center in London,<br />
for the more direct distribution of<br />
all primary products such as wool,<br />
meats, wheat, dairy produce, fruits.<br />
The Co-operative Insurance Com- -<br />
pany of Australia, Limited, was or<br />
ganized two years ago.<br />
This insurance company has al<br />
ready 330 agencies in three of the<br />
Australian states, which are also co<br />
operative agencies for the six com<br />
panies. It insures the product<br />
from the producers to the consumers<br />
in Australia and Europe, thus reduc<br />
ing insurance charges to the possible<br />
minimum for the grower and the<br />
consumer.<br />
The extent of the Co-operative<br />
Movement in Australia warrants the<br />
creation of a statistical bureau to<br />
make a thorough survey and gather<br />
accurate information of the Co-op<br />
erative Movement and its progress<br />
so that this information could be ex<br />
changed with like bodies in Europe<br />
and America and other countries.<br />
This would enable the co-operative<br />
consumers and producers of the<br />
world to keep posted, so that these<br />
societies would be recognized as the<br />
international business and economic<br />
agencies of the producers and con<br />
sumers in all countries, and by their<br />
organized economic constructive<br />
power for good, prevent a recur<br />
rence of the destructive madness<br />
and losses to both consumers and<br />
producers in all countries such as<br />
occurred since the year 1914.<br />
THE FRENCH MINERS' PLAN<br />
FOR <strong>CO</strong>AL<br />
At the National Congress of the<br />
Belgian Miners, recently held in Brus<br />
sels, the delegate who is secretary<br />
of the French Miners' Federation<br />
explained the sort of nationalization<br />
the French miners are demanding.
190 <strong>CO</strong>-<strong>OPERATION</strong><br />
He said: "We wish for neither state<br />
ownership nor 'the mines for the<br />
miners.' Both the state socialistic sys<br />
tem and the syndicalistic system have<br />
proved sufficiently defective to be<br />
thrown aside. We wish to place the<br />
management of the mines and mine<br />
output in the hands of a National<br />
Committee: this committee to be<br />
composed of representatives of man<br />
ual and non-manual workers' organi<br />
zations and representatives of organ<br />
ized consumers and the government."<br />
Slowly but surely the world is wak<br />
ing up to the fact that the consum<br />
ers are an important factor in the<br />
economic life.<br />
PROGRESS IN POLAND<br />
The Union of Polish Consumers'<br />
Societies reports the continued<br />
growth of Consumers' Co-operation<br />
during 1921. The membership of<br />
consumers' co-operative societies at<br />
the end of 1921 was 348,500, a slight<br />
increase over the previous year. The<br />
number of co-operative societies was<br />
1049. In order to promote efficient<br />
operation, many co-operative societies<br />
in the same territory are amalgamat<br />
ing. The society of Warsaw has a<br />
membership of 11,236 persons, it has<br />
its own bakery and 24 branch stores,<br />
and employs 74 persons.<br />
A novel venture of the Union was<br />
the leasing, early this year, of a 500<br />
acre farm from the Government.<br />
This is the first consumers' co-opera<br />
tive farm in Poland. It is destined<br />
to carry on poultry breeding and egg<br />
production, for the benefit of con<br />
sumers' stores.<br />
Educational work is by no means<br />
neglected by the Polish Union. Three<br />
co-operative periodicals are issued,<br />
and many thousands of pamphlets are<br />
distributed. An especially interesting<br />
phase of the Polish educational work<br />
is the posters issued by the Union.<br />
Highly artistic colored posters, con<br />
taining striking co-operative car<br />
toons, are issued by the thousands<br />
every year.<br />
<strong>CO</strong>-<strong>OPERATION</strong> IN NORWAY<br />
The Union of Norwegian Distribu<br />
tive Societies (Norges Kooperative<br />
Landsforening, or as it is commonly<br />
called, the N. K. L.) reports that the<br />
consumers' co-operatives of Norway<br />
have grown rapidly. The N. K. L.,<br />
an educational and wholesale union,<br />
started in 1907. It had 23 societies<br />
affiliated with it. By 1921 it had 404<br />
society members. The individual<br />
membership comprised by these so<br />
cieties amounts to 94,000. Though<br />
the turnover of most private firms<br />
decreased during the period of 1920-<br />
1921, that of the co-operative whole<br />
sale increased from 18,000,000 to<br />
21,000,000 cfowns (about $5,000,000<br />
normal). The wholesale operates a<br />
tobacco factory, a coffee roasting es<br />
tablishment, and a butter factory.<br />
The latter turned out in 1921, 2,500,-<br />
000 pounds of butter. A bank is<br />
maintained by the Union, in which<br />
there were 3,000,000 crowns on de<br />
posit in 1921. The depositors include<br />
9,698 individuals and 420 associa<br />
tions. In January, <strong>1922</strong>, a co-opera<br />
tive insurance company was started,<br />
to deal in fire, marine, burglary, and<br />
liability insurance.<br />
The local co-operatives affiliated<br />
with the N. K. L. are prospering.<br />
The turnover during 1921 of the 308<br />
societies reporting was 115,099,500<br />
crowns ($24,000,000 normal), or an<br />
increase of 3,000,000 crowns during<br />
the year. The societies employed<br />
1,587 workers. Local co-operatives<br />
operated 71 productive establish<br />
ments: viz., 52 bakeries, 6 shoe fac<br />
tories, 8 sausage factories and<br />
slaughter-houses, 2 tailors' work<br />
shops, 1 flour mill, 1 butter factory,<br />
and 1 knitting factory.<br />
THE <strong>CO</strong>-OPERATIVE MOVEMENT<br />
IN JAPAN<br />
According to an investigation<br />
made by the Japanese Department<br />
of Agriculture and Commerce, and<br />
published by the "International La<br />
bor Review," Vol. 1, No. 2, at the<br />
end of 1921 there were 13,770 co<br />
operative societies in Japan, classi<br />
fied as follows:<br />
Credit societies ................. 2,535<br />
Sales societies .................. 251<br />
Purchase societies .............. 436<br />
Productive societies ............. 107<br />
Sales and purchase .............. 380<br />
Sales and production ............ 175<br />
Purchase and production ......... 38<br />
Sales, purchase and production.... 194<br />
Credit and sales ................ 232<br />
Credit and purchase ............. 3,059<br />
Credit and production ........... 67<br />
Credit, sales and purchase ........ 4,150<br />
Credit, sales and production ...... 155<br />
Credit, purchase and production ... 99<br />
Credit, sales, purchase an production. 1,892<br />
Total ............... ........ 13,770<br />
The total membership of these so<br />
cieties is 2,850,000. They are<br />
grouped in 178 federations.<br />
The 18th Congress of Co-opera<br />
tive Societies (President, Viscount<br />
Hirata; Vice-president, Mr. Shimu-<br />
ra), was held on 21 and 22 April<br />
at Tokyo. About 12,000 represent<br />
atives from all parts of the country<br />
were present.<br />
The Minister of Agriculture and<br />
Commerce, Baron Yamamoto, ex<br />
pressed his gratification at the in<br />
crease in the number of co-opera<br />
tive societies, and at the important<br />
part they play in the national eco<br />
nomic development.<br />
With regard to the attitude to be<br />
adopted by co-operative societies in<br />
the present economic situation the<br />
following resolution was passed:<br />
The congress considers it urgently neces<br />
sary, in view of the situation at home and<br />
abroad, that the co-operative societies in<br />
Japan shall make every endeavor to de<br />
crease the cost of production, effect im<br />
provements in the methods of distribution<br />
of commodities, and maintain harmonious<br />
relations between the different classes of<br />
society.<br />
The congress also passed a reso<br />
lution declaring that the establish<br />
ment of a central credit institution<br />
was absolutely necessary for the de<br />
velopment of co-operative societies<br />
in Japan, and decided that the gov<br />
ernment should be asked to bring<br />
in a bill in the course of the next<br />
session of parliament for the estab<br />
lishment of such an institution.<br />
It is seen from the above that the<br />
Japanese Movement is mostly credit<br />
societies, and that it embraces all<br />
forms of Co-operation. The most<br />
significant fact is that the govern<br />
ment is playing a large part in the<br />
Movement.<br />
<strong>CO</strong>-<strong>OPERATION</strong> 191<br />
<strong>CO</strong>-OPERATORS DO NOT MAKE<br />
SALES<br />
The court at Gelsenkirchen, Ger<br />
many, has handed down a decision<br />
which states that the exchange of<br />
merchandise by the co-operative<br />
store with its members is not an act<br />
of commerce, is not a sale in the<br />
eyes of the law, but is a re division<br />
or reassignment of the members'<br />
rights amongst themselves; that it<br />
does not come under the ruling of<br />
those laws which are applicable to<br />
commerce.<br />
GERMAN SHARE CAPITAL<br />
The co-operatives in Germany and<br />
Austria have reached a point where<br />
they fix the amount of share capital<br />
that each member must put in. The<br />
share capital of each member must<br />
be equal to one weeks wage of the<br />
better paid class of workman. As<br />
wages increase the amount of share<br />
capital must increase. Unless the so<br />
cieties did this they would soon run<br />
out of capital to carry on business be<br />
cause of the steady decline of the<br />
purchasing power of money.<br />
PRODUCTION IN CZECHO<br />
SLOVAKIA<br />
The Wholesale in Czecho-Slpvakia<br />
has recently established factories for<br />
the production of coffee, malt and<br />
flour at Ostrawa, Pilsen and Brunn.<br />
FASCISTI DESTROY <strong>CO</strong>-OPERA<br />
TIVES<br />
The Fascist! in Italy represent the<br />
young men who want to see the old<br />
dying profit system of privilege kept<br />
alive. They actually believe that<br />
by fighting the things that are go<br />
ing to take its place when it is gone<br />
they can prevent its death. This is<br />
the mistake always made by the<br />
mob when it sees the thing it likes<br />
slipping away to be replaced by<br />
something else. For this reason the<br />
Fascist! are now destroying the co<br />
operatives. At Parma they have re-
192 <strong>CO</strong>-<strong>OPERATION</strong><br />
cently attacked and destroyed the<br />
offices of the district co-operative<br />
organization. This includes the<br />
headquarters of the co-operative<br />
bank. A number of the rural co<br />
operative banks in other sections<br />
have been destroyed. A sum of<br />
120,000 lire was taken from one of<br />
these banks. This sort of thing is<br />
going on in many parts of Italy un<br />
checked by the government. At<br />
Kavenna the central premises of the<br />
Co-operative Federation were razed<br />
to the ground; nothing remains but<br />
a mass of brick and stone.<br />
The present economic system is<br />
going to pieces. But the beneficia<br />
ries of that system are not willing<br />
to recognize the fact. They are re<br />
sentful and opposed to any organ<br />
ized movement that would build a<br />
substitute for the old decaying sys<br />
tem.<br />
The Co-operative Movement is<br />
necessary because the old profit<br />
motive does not work well; it<br />
does not give good results—there<br />
fore Co-operation thrives. As the<br />
decay goes on and the evidences of<br />
the defects of the profit system are<br />
seen more and more, the people who<br />
want that system not to die grow<br />
frantic. They try to destroy trade<br />
unions; they put so-called radicals<br />
in jail; they do many other foolish<br />
things which of course hasten rather<br />
than retard the on moving current<br />
of events. We may see this sort of<br />
thing grow in the United States.<br />
The American Legion and the Klu<br />
Klux are destined to play an im<br />
portant role in giving voice and kick<br />
to a dying system.<br />
RUSSIAN <strong>CO</strong>-OPERATIVE TRADE<br />
POLICY<br />
A definite and uniform plan of ac<br />
tion is essential for the co-opera<br />
tives in every country. The Rus<br />
sians are uniting to that end.<br />
At the numerous congresses of<br />
provincial co-operative unions now<br />
taking place in different parts of<br />
Russia, great attention is being paid<br />
to the question of the trade policy of<br />
the co-operatives, and a series of<br />
resolutions on this subject adopted<br />
at the Co-operative Congress of the<br />
Government of Nijni-Novgorod indi<br />
cate the aspirations of the co-opera<br />
tives throughout Russia. These<br />
resolutions recommend the follow<br />
ing policy:<br />
1) To develop quick sales and returns<br />
by concentrating on large-scale operations<br />
and diminishing the variety of goods of<br />
fered for sale;<br />
2) To dispose immediately of all goods<br />
not answering the needs of the local popu<br />
lation ;<br />
3) To buy at the centres of production<br />
and in central markets, thus avoiding deal<br />
ings with middlemen;<br />
4) To undersell the market wherever<br />
and whenever possible;<br />
5) To draw up a joint plan of supply<br />
with the provincial workers' co-operative<br />
union;<br />
6) To establish a grain reserve to be<br />
used in exchange for manufactured articles<br />
needed by the agricultural population.<br />
The conditions in America are<br />
very different from Russia, but we<br />
should be working toward definite<br />
and well thought out plans of ac<br />
tion.<br />
PROGRESS IN SWEDEN<br />
Swedish co-operative societies flour<br />
ished last year as they have never<br />
done before. In the same period<br />
Swedish profit business, commerce<br />
and industry suffered heavy losses or<br />
at the best showed small profits. The<br />
New York Journal of Commerce says:<br />
"Whether the co-operatives succeed<br />
ed in spite of the worldwide depres<br />
sion or because of it is hard to say,<br />
but the fact remains that the dismal<br />
year of 1921 was for them a banner<br />
year."<br />
Sweden at present has about 1,000<br />
co-operative stores, besides many va<br />
rieties of other ventures, such as co<br />
operative dwelling and building asso<br />
ciations, purchasing societies, co-op<br />
erative dairies and farmers' societies.<br />
Last year's report of the Swedish<br />
Union shows that a net surplus of<br />
about $125,000 has been made by<br />
these societies, while the cash on hand<br />
has increased from $1,250,000 to $1,-<br />
850,000.<br />
Deposits with different branches of<br />
co-operative unions, which conduct<br />
limit savings bank activities, increas<br />
ed to the equivalent of $3,350,000, re<br />
presenting small savings of co-opera<br />
tive society members.<br />
The Central Union has started its<br />
own producing plants in several<br />
places. The report states that mem<br />
bers of the co-opera'tive societies are<br />
enabled to purchase practically all ne<br />
cessities at the lowest prices obtain<br />
able, as well as sell their products on<br />
most favorable terms through their<br />
own joint organizations. The great<br />
est number of co-operative enter<br />
prises, the report shows, are to be<br />
found in the big industrial centers,<br />
where the bulk of membership is<br />
drawn from the ranks of workmen<br />
and their families.<br />
THE GERMAN FISH INDUSTRY<br />
The German people are much in<br />
need of nourishing foods which can<br />
be brought within their very limited<br />
purchasing power. No organiza<br />
tion has done so much to help the<br />
people in this direction as the co<br />
operative societies. Recently they<br />
have gone into the fishing industry<br />
to take from the sea an abundant<br />
and highly nourishing food which<br />
can be had free for the taking. The<br />
sea yields 100,000,000 tons of fish<br />
annually for the nourishment of<br />
mankind without the necessity of any<br />
planting, feeding or cultivation. To<br />
take advantage of this field the Ger<br />
man Co-operative Wholesale Socie<br />
ty 'has gone into the fish industry.<br />
A receiving depot has been estab<br />
lished at Geestemuende, the fishing<br />
port, where the fish are brought in.<br />
The fresh fish are transported to Al-<br />
tona where the society has estab<br />
lished a fish packing, curing and<br />
shipping plant. In the course of<br />
the year a curing and packing fac<br />
tory will be built at Geestemuende.<br />
At Altona a big fish industry build<br />
ing has been bought, remodeled and<br />
put in order for a growing enter<br />
prise. Other large buildings have<br />
been purchased for storehouses<br />
<strong>CO</strong>-<strong>OPERATION</strong><br />
193<br />
which have a capacity for several<br />
hundred tons of salted fish. At<br />
present over 100 employees are en<br />
gaged by the society in this indus<br />
try. WINNER OF <strong>CO</strong>NTEST<br />
Mr. Alanne is educational direc<br />
tor of the Central Exchange, Supe<br />
rior, Wis., and an ardent and en<br />
thusiastic Co-operator.<br />
NEW SUBSCRIPTION <strong>CO</strong>NTEST<br />
The League will again offer a prize<br />
of a copy of any book listed among<br />
the publications of The League or<br />
bibliography, to the person who will<br />
send in the most subscriptions to<br />
<strong>CO</strong>-<strong>OPERATION</strong> during the period<br />
November 1st to February 1st. The<br />
contest is open to all. Sample copies<br />
of the magazine and subscription<br />
blanks will be sent on request to those<br />
desiring to enter the contest.<br />
CASH REGISTER FOR SALE<br />
Co-operative societies are given an<br />
opportunity to buy a cash register<br />
which was formerly the property of<br />
the Schenectady Co-operative So<br />
ciety, which has been forced to li<br />
quidate. It is a National Cash Reg<br />
ister, a new electric model, class 1700.<br />
We are assured that it is in first-<br />
class condition. The original cost<br />
was $475. The machine was used<br />
only a short time, and, we are in<br />
formed, is well worth at least $300.<br />
It is offered for sale to co-operative<br />
societies for $250. Those desiring<br />
further information should write to<br />
the person offering the machine for<br />
.sale — Campbell MacMillan, 150<br />
Brandywine Ave., Schenectady, New<br />
York.<br />
HAVE THE WORKERS LEARNED THE<br />
LESSON?<br />
"The growing realization by the workers<br />
of America of the value and importance<br />
of the Co-operative Movement has during<br />
the last two years especially been com<br />
mercialized for the advantage of a dozen<br />
different centralized machines. These or<br />
ganizations preached the doctrine that all<br />
that the workers had to do was to entrust<br />
their money to the "experts" who would<br />
run Co-operation for them. The money lost<br />
in them amounts to many millions, but, in<br />
my opinion, the workers can well afford it<br />
if only they have learned the lesson."<br />
THOMAS H. BELL.
1;<br />
194 <strong>CO</strong>-<strong>OPERATION</strong><br />
110 PER CENT SAVINGS<br />
The Co-operative Association, at<br />
Dillonvale, Ohio, reports a saving of<br />
$27,856 on its turnover of $328,714<br />
last year. This amounts to a saving<br />
of 8 per cent when figured on the<br />
turnover, and 110 per cent on the<br />
capital stock, which amounts to<br />
$25,000. Savings of 6 per cent were<br />
returned to members on the basis of<br />
their purchases. The "dividend"<br />
amounted to $16,827, while $11,029<br />
was set aside in the reserve fund.<br />
This Association is composed<br />
largely of Bohemians. It has a mem<br />
bership of 370, and conducts seven<br />
branches in addition to the central<br />
store at Dillonvale. Organized in<br />
1908, it has saved thousands of dol<br />
lars to the consumers of Ohio, and is<br />
increasing in usefulness. This so<br />
ciety is affiliated with The Co-opera<br />
tive League.<br />
A RAILROAD SHOPMEN'S<br />
<strong>CO</strong>-OPEr.ATIVE<br />
In Erwin, Tennessee, The Consum<br />
ers' Co-operative League, which is<br />
composed very largely of railroad<br />
shopmen, is rendering a great service<br />
to the .striking shopmen and to the<br />
general public as well. Although<br />
hard hit by the strike, the society is<br />
sound and prosperous. From July,<br />
1921, to July, <strong>1922</strong>, it supplied<br />
$176,950 worth of goods to its mem<br />
bership. The store deals in dry-<br />
goods, notions, shoes, millinery, gro<br />
ceries and meats.<br />
The 343 members of the co-opera<br />
tive received substantial rebates. For<br />
the first six months of the year, sav<br />
ings-returns of 8 per cent were paid;<br />
and 5 per cent were returned for the<br />
second half of the year. Since it was<br />
organized, a little over two years ago,<br />
this co-operative has returned to its<br />
members in rebates more than was<br />
the subscribed capital stock. This is<br />
one of the finest societies of 'The1<br />
League's constituent societies in the<br />
South.<br />
NEWS AND <strong>CO</strong>MMENT<br />
A FLOURISHING FARMERS'<br />
STORE<br />
The Farmers' Co-operative Store<br />
of Princeton, Missouri, is >a 'lusty,<br />
two-year old. Starting business in<br />
1920, its sales the first year amounted<br />
to $102,257. The second year's sales<br />
increased to $123,339. The store sup<br />
plied its membership with 4,731 sacks<br />
of flour, 2 carloads of potatoes, 5<br />
carloads of salt, and 14 carloads of<br />
flour and feed.<br />
The savings-returns for the year<br />
amounted to $4,001, or the equiva<br />
lent of 45 per cent of the capital<br />
stock. The savings were distributed<br />
among members as a 6*4 per cent re<br />
bate on purchases, in addition to 8<br />
per cent interest on capital stock.<br />
The co-operative has $4,603 in the<br />
bank, and total assets of $14,962.<br />
These figures tell the story of the<br />
prosperity of this young society.<br />
<strong>CO</strong>-OPERATIVE MILK PUREST<br />
IN CLEVELAND<br />
A Department of Health inspection<br />
of all the dairies in Cleveland, Ohio,<br />
a few weeks ago revealed the fact<br />
that the City Co-operative Dairy sup<br />
plies the purest product in the city.<br />
The co-operative was given a rating<br />
of 94, which was the highest score<br />
for purity and cleanliness. The cus<br />
tomers of the co-operative are de<br />
lighted with the quality of the milk,<br />
butter and cottage cheese.<br />
The dairy is now on safe ground.<br />
When the co-operative opened for<br />
business a few months ago, they were<br />
met with the bitter opposition of the<br />
large private dairies, which spread<br />
malicious reports that the co-opera<br />
tive was bankrupt. Farmers were<br />
approached by the private dealers<br />
and were threatened with the with<br />
drawal of their trade, if they would<br />
supply milk to the co-operative. JL<br />
real peril to the existence of the so<br />
ciety was the lack of capital with<br />
which to finance the dairy plant.<br />
Then came the encouraging news<br />
that the Brotherhood Bank would<br />
finance the plant. In addition thou<br />
sands of dollars were raised among<br />
unions and consumers for the purpose<br />
of putting out more wagons to supply<br />
the demand for co-operative dairy<br />
products. Now the enterprise is be<br />
ginning to show a profit, which will<br />
be returned to consumers as patron<br />
age rebates.<br />
A very striking method of stimu<br />
lating interest in the dairy was em<br />
ployed a few weeks ago. A Wiener<br />
Roast was held at the plant, and<br />
about 600 people turned up to have a<br />
good time. As a result many new<br />
customers were made. The co-opera<br />
tive uses much of the literature of<br />
The Co-operative League with which<br />
it is affiliated.<br />
LEAGUE HELPS CHICAGO<br />
The Co-operative Cigar Makers,<br />
Inc., of Chicago, a producers' enter<br />
prise, organized by the Cigar Makers'<br />
Union, reports that it was "saved just<br />
at the time when the great trade<br />
slump hit the nation", through the<br />
help of The Co-operative League. In<br />
1919 a general strike of the cigar<br />
makers occurred in Chicago. The is<br />
sue was bitterly fought. Scores of<br />
strikers were jailed for terms of from<br />
30 days to 6 months, and were heavily<br />
fined, for picketing. To combat the<br />
employers, the workers organized<br />
their own cigar business, and they<br />
now supply co-operatives with their<br />
own brand of cigars.<br />
Just at the time the workers' fac<br />
tory was launched, the financial de<br />
pression began. Trade was hard to<br />
get. The concern appealed to The<br />
Co-operative League for a list of all<br />
the co-operatives of the country, and<br />
by means of the list, a mail order<br />
business was built up which enabled<br />
the workers' enterprise to pull<br />
through the depression. This society<br />
is a fraternal member of The League.<br />
<strong>CO</strong>-<strong>OPERATION</strong> SAVES STRIKES<br />
From all over the country come re<br />
ports that co-operative societies are<br />
giving invaluable assistance to strik<br />
ing railroad shopmen, textile work<br />
<strong>CO</strong>-<strong>OPERATION</strong> 195<br />
ers, and miners. The Union Consum<br />
ers' Co-operative, of Duluth, Minn.,<br />
which is affiliated with the Co-opera<br />
tive Central Exchange and with The<br />
Co-operative League, is giving credit<br />
to striking railroad shopmen. Sav<br />
ings are effected for the strikers be<br />
cause the prices charged by the co<br />
operative are lower than elsewhere.<br />
In Two Harbors, Minn., the co-opera<br />
tive store is giving credit and assist<br />
ance to strikers.<br />
During the general strike of the<br />
miners, which was recently won, hun<br />
dreds of co-operatives gave aid to the<br />
utmost. The textile workers of Paw-<br />
tuxet Valley, and of Lawrence, Mass.,<br />
were able to stay out for six months,<br />
until they succeeded in going back<br />
without the drastic reduction in<br />
wages against which they had been<br />
striking. During these weary months<br />
the co-operative bakeries in Massa<br />
chusetts donated sufficient bread to<br />
supply all the families of the textile<br />
strikers, while other co-operatives in<br />
the vicinity donated thousands of<br />
dollars, and strained their credit to<br />
the limit to feed the strikers.<br />
Co-operation is good strike insur<br />
ance.<br />
RINGING UP A QUORUM<br />
There is a large and successful<br />
co-operative society in New York<br />
City which does not trust to the<br />
mails alone to bring together the di<br />
rectors for their monthly meetings.<br />
Every director is rung up on the<br />
telephone, reminded of the meet<br />
ing, and the assurance gotten from<br />
him that he will be present—or he<br />
has to give a good excuse for ab<br />
sence. This plan works well.<br />
It is sometimes difficult for socie<br />
ties to get a quorum at the quarterly<br />
meetings. Some British sooieties<br />
have resorted to an old fashioned<br />
method to bring the members to<br />
gether. The East Cleveland Society<br />
employs the town bellman who goes<br />
through the streets ringing 'his bell<br />
and calling out the members to the<br />
meeting. This is a delightful sur<br />
vival of the old-time custom.
196 <strong>CO</strong>-<strong>OPERATION</strong><br />
LLANO <strong>CO</strong>LONY<br />
The following are excerpts from<br />
a letter received from George T. Pick-<br />
ett, Manager of the Llano Colony, in<br />
answer to the article on the colony<br />
written by "A Recent Colonist" in<br />
the August issue of <strong>CO</strong>-<strong>OPERATION</strong>.<br />
The letter unfortunately is too<br />
lengthy to be published in full, as it<br />
is about 2,000 words long. In the<br />
interest of fairness, we are publish<br />
ing the salient parts of Mr. Pickett's<br />
letter.<br />
"I have read in the August <strong>CO</strong>-OPERA<br />
TION an article by 'A Recent Colonist' con<br />
demning the Colony and its management,<br />
also your editorial comment on it I am<br />
mildly surpi'-sed that you have taken this<br />
action without full information. ... I<br />
now ask you to print this letter in <strong>CO</strong><br />
<strong>OPERATION</strong>.<br />
"This Colony is not now fully self-sup<br />
porting, if we use that expression in the<br />
sense that it is able at this time to keep<br />
up promptly its payments on the land it<br />
has under option; to buy at once necessary<br />
equipment for its agricultural and indus<br />
trial developments; to bring its land at once<br />
to full productive capacity; and to meet<br />
from earnings all the expenses necessarily<br />
incurred during this period of initial pur<br />
chase, improvement and development. If<br />
we wished to stop buying land and restrict<br />
our membership to a small number, we<br />
could be at once fully self-supporting. We<br />
realize that the proceeds of sales of capital<br />
stock (or membership fees) should ordi<br />
narily be applied to such initial costs only<br />
as purchasing land, clearing and fencing<br />
it, and initial stocking and equipment, and<br />
we are in good faith striving, and striving<br />
hard, to reach that goal. We certainly do<br />
not want the outside world to support us,<br />
but we do want friends of Co-operation<br />
everywhere to assist us in putting this<br />
institution on a solid footing, and this at<br />
the earliest practicable date. If you could<br />
read the many letters that I receive from<br />
persons wrecked and cast aside by capi<br />
talism, in which they ask to be allowed to<br />
come here though they have no money to<br />
pay, I am sure you would feel the urgent<br />
need of all reasonable speed in putting this<br />
Colony in such condition that it could per<br />
mit such persons to come without regard to<br />
whether they had the price or not.<br />
"The Colony is organized as a corpora<br />
tion under the name of Llano del Rio Com<br />
pany of Nevada. Neither I nor any other<br />
manager has or ever has had the right to<br />
dispose of the Colony's land as your in<br />
formant states. Yes, forty acres of the<br />
Colony land was conveyed to a former man<br />
ager of the Colony for the purpose of ena<br />
LETTERS<br />
bling him to meet certain legal requirements<br />
of interest to the Colony. It still stands in<br />
his name, although he long ago asked me<br />
to send him a form of deed for re-convey<br />
ance, because I was crowded with some<br />
urgent work. This deed was made in ac<br />
cordance with a resolution of the Board<br />
of Directors and with the knowledge of<br />
many of the colonists. No attempt at con<br />
cealment was ever made. It should be re-<br />
conveyed and will be soon.<br />
"Full and free criticism of the Colony's<br />
officers and policies is allowed, but not<br />
criticism of the settled basic principles such<br />
as would endanger the very existence of the<br />
Colony. We value our morale as highly as<br />
our tangible assets, and we certainly do<br />
'land on' the knocker who knocks to be<br />
knocking. Criticism is welcome, especially<br />
if the critic is of a constructive turn of<br />
mind.<br />
"The Colony is as socialistic as any<br />
small-scale enterprise can be. It has at<br />
least a large measure of communism. It is<br />
certainly co-operative in the fullest sense<br />
of the word. We are striving for the<br />
proper balance between the ideal and the<br />
real; between the theoretical and the prac<br />
tical; between industrial democracy and in<br />
dustrial efficiency. Experience is our<br />
teacher; results are our test. . . .<br />
"There are more ro_ads than one lead<br />
ing to the Co-operative Commonwealth.<br />
Among these are the radical political<br />
parties and movements, producers' co<br />
operatives, consumers' co-operatives and<br />
co-operative colonies. Travelers -on any<br />
one of these roads should not quarrel with<br />
or hinder those on any of the other roads.<br />
Should they not rather encourage and assist<br />
one another? Do not we who are preaching<br />
and trying to practice doctrines in advance<br />
of our time have enough discouragements<br />
and drawbacks at best, without having more<br />
added by our own people? Must our friends<br />
be our worst enemies? Should we not rather<br />
encourage and assist one another? By doing<br />
so we shall speed the day of final success<br />
for us all.<br />
"GEORGE T. FICKETT,<br />
"General Manager.<br />
"Llano Co-operative Colony."<br />
As a contrast to the generalities<br />
of Mr. Pickett we would call the at<br />
tention of our readers to the follow<br />
ing excerpts from a letter written to<br />
Mr. Pickett by George Keen, general<br />
secretary of the Co-operative Union<br />
of Canada. We are willing to rest the<br />
case here:<br />
"I am obliged to you for writing so fully,<br />
but I have to remind you that the informa<br />
tion given is not to the point.<br />
"All bona-fide co-operative organizations<br />
give the fullest information as to their<br />
financial position, verified by the certificate<br />
of competent authorities. When trustees<br />
are handling the assets of the people in a<br />
co-operative or communistic undertaking it<br />
is more necessary that they should have a<br />
proper accounting than in capitalistic un<br />
dertakings, where the element of specula<br />
tion and uncertainty is recognized to exist;<br />
the investor accepting unearned profits as<br />
a consideration for the risk undertaken. I<br />
challenge your statement that 'I can think<br />
of no better authority than the comrades<br />
who are here in our community1 in vouching<br />
for the financial integrity of your under<br />
taking. If your comrades are prepared to<br />
operate the community without periodically<br />
having an adequate accounting it will be<br />
a very unwise procedure, but, if no other<br />
interests are involved, will be a subject<br />
within their absolute discretion. You over<br />
look the fact, however, that those comrades<br />
are the present owners_ of the undertaking<br />
and that they are asking working men to<br />
invest their slender savings without having<br />
any data put before them as to whether or<br />
not they will receive in assets an adequate<br />
consideration for the payment. When capi<br />
talists float joint stock companies on such<br />
a basis they are properly subject to strong<br />
condemnation, and in my judgment a co<br />
operative organization following such meth<br />
ods violates the fundamental moral princi<br />
ples of the Movement.<br />
•'You are advertising very widely solicit<br />
ing membership to your colony. Tha people<br />
you approach, before they part with their<br />
money, on the one hand have a right to<br />
know how much capital has been invested<br />
in the undertaking, and on the other what<br />
was_ paid thereout for each particular asset,<br />
subject to such fair and legitimate deprecia<br />
tion as subsequent events may suggest to<br />
be necessary. Then these working people<br />
of small means would be able to see whether<br />
or not they would have a hundred cents in<br />
assets for every dollar they invest in the<br />
community. It is not communism but a<br />
wicked exploitation of a sound moral prin<br />
ciple if people living a community life ab<br />
sorb the savings of people outside and use<br />
them to satisfy their current needs. . . .<br />
"I hope that even now, instead of dealing<br />
in generalities and appearing to exploit the<br />
sentiment of well-meaning people devoted<br />
to the idea of a better social order, you will<br />
put your proposition before them in plain<br />
terms and give them satisfactory evidence<br />
as to the quality of the security you are<br />
offering them for their savings. Doubtless<br />
people of small means and family responsi<br />
bilities contemplate risking everything they<br />
have in this world in your venture. I can<br />
only repeat that until this is done, I, for<br />
one, cannot assume the responsibility of<br />
giving currency to the proposition now<br />
presented.<br />
"GEORGE KEEN,<br />
"General Secretary.<br />
"The Co-operative Union of Canada."<br />
<strong>CO</strong>-<strong>OPERATION</strong> 197<br />
<strong>CO</strong>-OPS "CARRY-ON" IN<br />
NEW MEXI<strong>CO</strong><br />
"What looks good to me is the indomitable<br />
spirit of Co-operation that is shown here<br />
to carry on under all difficulties, till we<br />
put it over. We are what you would call<br />
'bitter-enders'. Will not burden you with<br />
details of our troubles. We wouldn't know<br />
what to do if we didn't have a good stiff<br />
fight on our hands."<br />
N. S. BELL,<br />
Tucumcari Co-operative Society.<br />
Tucumcari, N. M.<br />
FARMINGTON MINERS' STORE<br />
"Your Call to the Third Co-operative<br />
Congress was read before the board of<br />
directors. I am proud to say that all were<br />
in favor of the Congress and hope it will<br />
be a success, but owing to the prolonged<br />
coal strike, we have lots of money out. We<br />
therefore deem it advisable to save the ex<br />
pense of a delegate at the present time.<br />
Also we have one of the chain-stores opened<br />
right next door to us, but we hope to battle<br />
it to a finish."<br />
Yours for Co-operation,<br />
N. THOMPSON, Secretary,<br />
Farmington Co-operative Society.<br />
Farmington, 111.<br />
PINE BLUFF RAILROAD <strong>CO</strong>-OP<br />
"We are indeed sorry that we were unable<br />
to take advantage of this opportunity to<br />
meet Co-operators from other parts of the<br />
country, for we are sure that we could have<br />
received information that would be bene<br />
ficial to our society. However, due to the<br />
conditions that exist as a result of the rail<br />
road strike, the directors could not see their<br />
way clear to send a delegate to this Con<br />
gress.<br />
"We are giving you a report of last year's<br />
business. The merchandise sales were<br />
$119,126, on which the gross profits were<br />
$21,788. The operating expenses being<br />
$17,651, the net profits were $4,136. We<br />
paid a purchaser's dividend of 3 per cent<br />
on the first of this year. We now have 175<br />
stockholders. Since a majority of our<br />
members are railroad men, we have been<br />
considerably affected by the strike and have<br />
lost quite a few. However, we are expect<br />
ing to pull through and expect a greater<br />
business than ever when conditions become<br />
normal once more."<br />
GEORGE WALTON, Sec'y-Treas.,<br />
Pine Bluff Co-operative Association.<br />
Pine Bluff, Ark.<br />
INTERNATIONAL GREETINGS<br />
"Your paper always gives me a new im<br />
petus because I see in it an ever-increasing
198 <strong>CO</strong>-<strong>OPERATION</strong><br />
faith in the final victory of Co-operation.<br />
"We here in old Europe are as yet in<br />
very difficult circumstances, because of the<br />
low valuta and the bad economic position<br />
which is the consequence thereof.<br />
"May statesmen and parliaments become<br />
wise!"<br />
G. J. D. C. GOEDHART, President.<br />
International Co-operative Alliance.<br />
KENTUCKY LOYALTY<br />
"We have been in business two years. We<br />
have had a hard pull to get through. Have<br />
been knocked from the inside as wall as<br />
the outside. Big business gave us six months<br />
to exist, as by that time they would put<br />
us out on the street; but we are_ still hold<br />
ing on, with money to our credit in the bank<br />
above all indebtedness. We will not be able<br />
to pay our stockholders anything this year.<br />
If we can pull through this strike crisis, we<br />
will be on top.<br />
"We have now about 150 loyal members.<br />
Originally we had 300. One-half stuck.<br />
"So far I am proud to say we are hold<br />
up our own by curtailing in every way.<br />
This trial has proved to my associates the<br />
need of a national association. I am fully<br />
satisfied after receiving your reply to this<br />
letter, you w_ill receive our application for<br />
membership in The League."<br />
JOE F. RANDALL, President.<br />
McCracken County Co-operative Ass'n.<br />
Paducah, Ky.<br />
PENN CENTRAL IS HOPEFUL<br />
"I am optimistic concerning the future<br />
of Co-operation, and feel that this coming<br />
convention will do much to further its in<br />
terests. The movement has been pretty well<br />
sifted. This will make possible a national<br />
organization of a cohesive nature. I hope<br />
that we will be able to find a common<br />
ground for federation along constructive<br />
educational lines." T. D. STILES, Pres.,<br />
Penn Central Co-operative Association.<br />
Cresson, Pa.<br />
FROM THE MAINE WOODS<br />
"While I was in Maine this summer, I<br />
came across a most interesting and suc<br />
cessful co-operative store in Greenville. It<br />
is a little town of about 1,800 people, is at<br />
the foot of Moosehead Lake, and for the<br />
past eight or ten years they have had a<br />
really live Co-operative Movement there.<br />
They do a weekly business of from $500 to<br />
$1,000, have a most able manager, Jack<br />
Hanson, and pay about 6 per cent per an<br />
num on purchases to the members.<br />
"Rev. Harry C. Vrooman, a clergyman<br />
of wide and varied experience, who is now<br />
in Greenville, is really the leading spirit in<br />
the enterprise."<br />
Baltimore, Md. EDITH H. HOOKER.<br />
Proceedings of The Third Co<br />
operative Congress, October 26-28,<br />
<strong>1922</strong>, may now be ordered from<br />
The Co-operative League.<br />
STATEMENT OF THE OWNERSHIP, MANAGE<br />
MENT, CIRCULATION, ETC., REQUIRED BY<br />
THE ACT OF <strong>CO</strong>NGRESS OF AUGUST<br />
24, 1912<br />
Of <strong>CO</strong>-<strong>OPERATION</strong> published monthly at New York.<br />
N. Y. for April 1. <strong>1922</strong>.<br />
State of New York<br />
County of New York, an.<br />
Before me, a notary public In and for the State<br />
and county aforesaid, personally appeared J. N.<br />
Perklns, who, having been duly sworn according<br />
to law, deposes and says that she Is the busi<br />
ness manager of the <strong>CO</strong>-<strong>OPERATION</strong> and that the<br />
following Is, to the best of her knowledge and be<br />
lief, a true statement of the ownership, manage<br />
ment (and If a dally paper, the circulation), etc..<br />
of the aforesaid publication for the date shown In<br />
the above caption, required by the Act of August<br />
24, 1912, embodied in section 443. Postal Laws and<br />
Regulations, printed on the reverse of this form,<br />
to wit:<br />
1. That the nameg and addresses of the publisher,<br />
editor, managing editor, and business managers<br />
are:<br />
Publisher, The Co-operative League of America.<br />
167 West 12th Street. New York City<br />
Editor, James P. Warbasse,<br />
167 West 12th Street, New York City<br />
Managing Editor, Albert Sonnichsen,<br />
167 West 12th Street, New York City<br />
Business Manager. J. N. Perkins.<br />
167 West 12th Street, New York City<br />
2. That the owners are: (Give names and addresses<br />
of Individual owners, or. If a corporation, give Its<br />
name and the names and addresses of stockholders<br />
owning or holding 1 per cent or more of the total<br />
amount of stock.)<br />
The Co-operative League of America,<br />
167 West 12th Street, New York City<br />
James P. Warbasse, President.<br />
167 West 12th Street, New York City<br />
A. P. Bower, VIce-President<br />
167 West 12th Street, New York City<br />
Waldfimar Niemela, Treasurer,<br />
167 West 12th Street, New York City<br />
(Organization members. 1,000.)<br />
3. That the known bondholders, mortgagees, and<br />
other security holders owning or holding 1 per cent<br />
or more of total amount of bonds, mortgages, or<br />
other securities are: (If there are none, so state.)<br />
None.<br />
4. That the two paragraphs next above, giving the<br />
names of the owners, stockholders, and security hold<br />
ers. If any, contain not only the list of stockholders<br />
and security holders as they appear upon the books<br />
of the company but also. In cases where the stock<br />
holder or security holder appears upon the books of<br />
the company as trustee or in any other fiduciary re<br />
lation, the name of the person or corporation for<br />
whom such trustee is acting. Is given; also that the<br />
said two paragraphs contain statements embracing<br />
affiant's full knowledge and belief as to the circum<br />
stances and conditions under which stockholders and<br />
security holders who do not appear upon the books<br />
of the company as trustees, hold stock and secur<br />
ities in a capacity other than that of a bona fide<br />
owner; and this affiant has no reason to believe that<br />
any other person, association, or corporation has<br />
any interest direct or Indirect In the said stock,<br />
bonds, or other securities than as so stated by him.<br />
5. That the average number of copies of each is<br />
sue of this publication sold or distributed, through<br />
the mails or otherwise, to paid subscribers during<br />
the six months preceding the date shown above is<br />
.......... (This Information Is required from dally<br />
publications only.)<br />
J. N. PERKINS.<br />
Business Manager.<br />
Sworn to and subscribed before me this 22nd day of<br />
September, <strong>1922</strong>.<br />
WALTER C. CAMPBELL,<br />
(Seal) (My commission expires.<br />
March 30th, 1924.)<br />
<strong>CO</strong>-<strong>OPERATION</strong><br />
PUBLICATIONS<br />
OF THE <strong>CO</strong>-OPERATIVE LEAGUE<br />
HISTORICAL Per Copy Per 100<br />
3. Story of Co-operation .................................................$ .10 $6.00<br />
7. British Co-operative Movement ........................................ .10 6.00<br />
10. A Baker and What He Baked (Belgian Movement)...................... .05<br />
38. Co-operative Consumers' Movement in the United States............... .05 4.00<br />
39. Consumers' Co-operative Societies in N. Y. State, (Published by Con<br />
sumers' League) .................................................. .10<br />
TECHNICAL<br />
4. How to Start and Run a Rochdale Co-operative Society.................. .10 4.00<br />
5. System of Store Records and Accounts................................ .50<br />
6. A Model Constitution and By-Laws for a Co-operative Society........... .05 2.50<br />
8. Co-operative Education. Duties of Educational Committee Defined..... .10<br />
9. How to Start a Co-operative Wholesale................................ .10<br />
27. Why Co-operative Stores Fail ......................................... .02 1.00<br />
2. Co-operative Store Management ...................................... .10<br />
14. How to Start and Run a Women's Guild................................ .05<br />
15. How to Organize a District Co-operative League ........................ .10<br />
MISCELLANEOUS<br />
16. Model Co-op State Law ............................................... .10<br />
17. Syllabus for Course 'of Lectures, with References and Bibliography.... .25<br />
46. Producers' Co-operative Industries ................................... .10<br />
11. Control of Industry by the People Through the Co-operative Movement... .10<br />
12. Credit Union and Co-operative Store.................................. .05 1.76<br />
34. Co-operative Movement (Yiddish) .................................... .02 1.26<br />
43. Co-operative Housing ................................................. .10<br />
42. Co-op Homes for Europe's Homeless ................................. .10<br />
ONE-PAGE LEAFLETS<br />
(One cent each; 50 cents per 100; $2.50 per 500; $4 per 1,000)<br />
(1) Principles and Aims of The Co-operative League; (17) Do You Know why You Should Be a<br />
Co-operator; (20) Why Loyalty Is Necessary; (21) Cost and Crime of Credit; (22) A Real<br />
Co-operator; (25) Resolutions Adopted by A. F. of L.; (26) Factory Workers Co-operate!;<br />
(28) Do You Know About Co-operation in Europe?; (40) Have You a Committee on Educa<br />
tion and Recreation?; (44) What Is the Co-operative Movement?; (45) Schools and<br />
Stores; (47) A Man's Right to a Job; (48) Tips to Co-operators; (49) Think It Over.<br />
MONTHLY PUBLICATIONS<br />
<strong>CO</strong>-<strong>OPERATION</strong>—(In bundle lots, $7.50 per hundred). Subscription, per year......... .$1.00<br />
HOME <strong>CO</strong>-OPERATOR, 4 pages ................................................ $1 per 100<br />
INTERNATIONAL <strong>CO</strong>-OPERATIVE BULLETIN (Pub. by The I. C. A.)...... .per year, $1.50<br />
BOOKS<br />
The following books are recommended as containing the best discussions of the modern<br />
Co-operative Movement. They may be ordered through The League:<br />
Bubnoff, J. B.: The Co-operative Movement in Russia, 1917.......................... .$1.25<br />
Faber, Harald: Co-operation in Danish Agriculture, 1918.............................. 2.75<br />
Flanagan, J. A.: Wholesale Co-operation in Scotland, 1920............................ 2.00<br />
Gebhard, Hannes: Co-operation in Finland, 1916...................................... 2.00<br />
Gide, C.: Consumers' Co-operative Societies, 1921...................................... 2.50<br />
Gide, C.: Consumers' Co-operative Societies, American edition and notes, <strong>1922</strong>......... 3.00<br />
Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, $2.00; paper<br />
bound ........................................................................... .60<br />
Howe, Fred C.: Denmark, a Co-operative Commonwealth, 1921......................... 2.00<br />
Maxwell, Wm.: History of Co-operation in Scotland, 1910.............................. 2.00<br />
Nicholson, Isa: Our Story ............................................................ .25<br />
Powell, G. Harold: Co-operation in Agriculture. Macmillan ........................... 1.50<br />
Redfern, Percy: The Story of the C. W. S............................................. 2.00<br />
Redfern, Percy: The Consumers' Place in Society, 1920............................... 1.00<br />
Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918...................... 1.50<br />
Smith-Gordon: Co-operation in Many Lands, 1920..................................... 1.50<br />
Sonnichsen, Albert: Consumers' Co-operation, 1919. Cloth bound, $1.75; paper bound... .75<br />
Stolinsky, A.: The Co-operative Movement. In Yiddish................................ 1.00<br />
Webb, B. and S.: The Consumers' Co-operative Movement, 1921........................ 6.00<br />
Webb, Catherine: Industrial Co-operation, 1917 ...................................... 1.50<br />
Woolf, Leonard: Co-operation and the Future of Industry ........................... 1.50<br />
Woolf, L.: Socialism and Co-operation ............................................... 1.50<br />
"The Co-operative Consumer" and "Co-operation," III (1917), VI (1920), VII (1921).... 1.25<br />
Transactions of Second American Co-operative Convention, 1920....................... 1.00<br />
The People's Year Book, <strong>1922</strong>...................................................... .76<br />
(Ten cents postage should be added for books which cost more than $2.00, and five cents<br />
for the smaller books.)<br />
J
THE <strong>CO</strong>-OPERATIVE LEAGUE<br />
(Member of The International Co-operative Alliance)<br />
167 West 12th Street, New York<br />
An educational organization for teaching the history, principles, methods ana alma of the<br />
Co-operative Movement and for the promotion of Co-operation In the United States.<br />
Join The League and thus help promote the educational work of the Co-operative<br />
Movement. Individual Membership, $1.00 a year. Subscribe for <strong>CO</strong>-<strong>OPERATION</strong>,<br />
the Monthly Magazine of The League, and keep in touch with the Movement.<br />
Fnnlnoo/1 fillj * for Subscription for <strong>CO</strong>-<strong>OPERATION</strong>, $1.00.<br />
unciosea nna ^........... AUI Memberihip in The LEAGUE> $ 1>0o.<br />
Name .................................................................<br />
Address.<br />
Date....<br />
Co-operative Central Exchange<br />
Wholesale Grocers and Jobbers,<br />
Bakers<br />
We supply goods to Co-operative Societies ONMT<br />
We are owned and controlled by Co-operativo<br />
Societies.<br />
We are organized to enable Co-operative Societies<br />
to do collectively what they cannot do Indi<br />
vidually.<br />
Co-operative Central Exchange<br />
Offices, Warehouses and Plant:<br />
Winter Street and Ogden Ave.,<br />
SUPERIOR, WIS.<br />
Co-operators' ttd. Mntnal Vtre Insurance Co.<br />
is now writing insurance In State of Wisconsin.<br />
The Canadian Co-operator<br />
Brantford, Ontario,<br />
Canada<br />
The organ of tbe Canadian Co-opera<br />
tive Movement, owned by and con<br />
ducted nnder the auspices of The<br />
Co-operative Union of Canada.<br />
Published monthly;<br />
75c per annum<br />
MOVING PICTURES<br />
and<br />
Stereopticon Lectures<br />
may be rented from<br />
THE <strong>CO</strong>-OPERATIVE LEAGUE<br />
167 West 12th St., New York City<br />
1. "Soit* Examples of English Co-operation."<br />
Moving pictures of factory processes (two<br />
reels) ................................85.00<br />
H. "Co-operation In tbe United State*."<br />
With 63 Stereopticon views ............73.00<br />
S. "Tbe Co-operative Movement in Rngssla."<br />
With 36 colored Stereopticon views... .73.00<br />
Co-operation in Scotland<br />
In no part of the world ia Co-operation further<br />
developed, or more successfully practised than In<br />
Scotland. If you wish to keep In touch, read<br />
"The Scottish Co-operator"<br />
(Published Weekly)<br />
Subscription: Tsar 12 ah.; half-year. 6 »h.<br />
Address, 119 Paisley Road,<br />
Glasgow, Scotland<br />
THE PRODUCER<br />
Issued Monthly Price 3d.<br />
If you want to keep in touch with<br />
business, organization, administra<br />
tive affairs, and problems of the<br />
British Co-operative Movement,<br />
read THE PRODUCER.<br />
Published by<br />
Co-operative Wholesale Society, Inc.<br />
1 Balloon Street, Manchester.<br />
Post free 4 sh. 6(1. a year.<br />
The Trade and Technical Organ of British<br />
Co-operation.<br />
THE HOME <strong>CO</strong>-OPERATOR<br />
A four-page magazine for<br />
use in co-operative societies.<br />
Issued monthly, in bundles, $1 per hundred.<br />
Published by<br />
The Co-operative League<br />
Publishing Office, Willimantic, Conn. Al<br />
bert Sonnichsen, Managing Eitor.<br />
(MOTION<br />
A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in vol<br />
untary association, produce and distribute for their own use the things they need<br />
Published monthly by The Co-operative League, 167 West Twelfth Street, New York City,<br />
J. P. Warbasse, Editor. Price, $1.00 a year. Entered as second class matter, December 19,<br />
1917, at the Post Office at New York, N. Y., under the Act of March 3, 1879.<br />
Vol. <strong>VIII</strong>, No. 12 <strong>DECEMBER</strong>, <strong>1922</strong> 10 Cent*<br />
THE CHICAGO <strong>CO</strong>NGRESS<br />
The three congresses which The<br />
Co-operative League has held have<br />
each been mile-stones marking pro<br />
gress in this country. The Springfield<br />
congress, in 1918, brought together<br />
people who were interested in the pro<br />
motion of Co-operation. The Cincin<br />
nati congress, in 1920, brought to<br />
gether delegates from the most pro<br />
gressive co-operative societies. The<br />
Chicago congress, in <strong>1922</strong>, was a con<br />
gress of delegates of societies which<br />
have united to form The Co-operative<br />
League. From this time on the num<br />
ber of societies that compose The<br />
League should steadily increase until<br />
it embraces all true co-operative con<br />
sumers' societies in the United States.<br />
This union of societies has been<br />
growing steadily now for six years.<br />
The Co-operative Movement in the<br />
United States is going forward quiet<br />
ly and without ostentation. The edu<br />
cational foundation which is being<br />
built is the best guarantee of success.<br />
The brag and bluster that is intro<br />
duced from time to time by inexperi<br />
enced and untaught enthusiasts, in<br />
flicts its harm, and then passes away.<br />
The steady plodding on of the edu<br />
cational work, the training of ex<br />
perts, and the assembling of accu<br />
rate information, are making their<br />
constant impression.<br />
The future was never so bright. Ee-<br />
sults that have the character of per<br />
VITAL ISSUES<br />
manence are now being secured. All<br />
of this rests upon the fact that we<br />
are developing in this country an in<br />
creasing number of people who under<br />
stand the principles and nature of Co<br />
operation-<br />
A few years ago there were very<br />
few people in the United States who<br />
could be said to understand Co-opera<br />
tion. Today this number has multi<br />
plied until well-informed Co-opera<br />
tors can be found in every part of<br />
the country. The defect of the Move<br />
ment heretofore has been that it<br />
has been promoted by people who were<br />
enthusiasts, but not informed Co-<br />
operators. The hope of the Move<br />
ment is that people who are learned<br />
in Co-operation, are multiplying.<br />
The third congress brought out<br />
this fact. We may rejoice and be ex<br />
ceedingly confident that education is<br />
bringing results.<br />
WAGES BEFORE DIVIDENDS<br />
One difference between a profit-<br />
making corporation and a co-opera<br />
tive corporation is that the former is<br />
all for dividends. Wages will be cut<br />
when the prevalent rate does not give<br />
the stock-holders a dividend. This<br />
can be seen as an argument used be<br />
fore wage boards every day when<br />
corporations are about to cut wages.<br />
If the earnings are so great that a<br />
surplus of profits is produced, that is<br />
covered up by increasing capitaliza<br />
tion and issuing more stock. There
200 <strong>CO</strong>-<strong>OPERATION</strong> <strong>CO</strong>-<strong>OPERATION</strong> 201<br />
are many ways to have no profits left<br />
to increase the wages of labor.<br />
But the co-operative starts out<br />
with the purpose to pay its employees<br />
at least the standard rate of union<br />
wages. Upon this basis, after deal<br />
ing justly with labor, if there are<br />
any net surplus-savings the patrons<br />
may have them. But not the stock<br />
holders. They can have only the le<br />
gal interest on their capital, and they<br />
can not have that until labor has been<br />
paid. The Co-operative Society puts<br />
wages before dividends. The profit<br />
corporation is interested in labor only<br />
for the purpose of making out of it as<br />
much dividend as passible for the<br />
stockholders.<br />
LIFE INSURANCE SAVES LIFE<br />
Few people realize the huge re<br />
sources that are being built up out<br />
of the profits of the life insurance<br />
companies. One use that is made of<br />
these resources is to induce banks to<br />
act as agents to get more insurance.<br />
It is customary for insurance com<br />
panies to deposit from $25,000 to $50,-<br />
000 with a bank under condition that<br />
the bank will get them a certain<br />
amount of new insurance business.<br />
Many of our readers may have won<br />
dered why the president or cashier of<br />
a bank went out of his way to sug<br />
gest to them in a private and friendly<br />
way to buy insurance in a company<br />
that he knew from inside information<br />
was offering "something especially<br />
good in life insurance." The banker<br />
does it because he is getting the use<br />
of $50,000 for 3 per cent interest and<br />
getting a return on it of 20 per cent<br />
or more. His profit is $8,500; and a<br />
banker can afford to give a good deal<br />
of advice for that.<br />
Life insurance companies are<br />
charging from $24.00 to $46.00 or<br />
more a year premiums on $1,000 in<br />
surance that costs from $9.60 to<br />
$15.00 a year to carry. They take<br />
the huge resources that develop and<br />
buy new business. Premium payers<br />
are putting up from $8.00 to $20.00 a<br />
year per $1,000 in excess of its value<br />
to induce more people1 to come in and<br />
be profiteered upon.<br />
These facts would never be known<br />
by the public except for the co<br />
operative insurance societies. They<br />
are growing up all over the country,<br />
but especially among the farmers of<br />
the middle west. A young man who<br />
is about to take out $1,000 insurance,<br />
on which the premium is $31.00, will<br />
be told by the "legal reserve" agent<br />
that the company will pay him a divi<br />
dend of 80 cents after the third year,<br />
90 cents after the fourth year, etc.<br />
But he could get this same amount of<br />
insurance with a co-operative com<br />
pany for $9.60 a year. That is the<br />
cost of the insurance. If it is divi<br />
dends he wants, the co-operative com<br />
pany could charge him the $31.00 a<br />
year and then pay him an annual divi<br />
dend of $21.40. Or the young man<br />
can take another $9.60 of it and buy<br />
another $1,000 worth of insurance<br />
and still have $11.80 left over. Or he<br />
can make his insurance $3,000 and<br />
save $2.20 a year. In other words, the<br />
co-operative insurance companies are<br />
making it possible for a man to buy<br />
$3,000 worth of insurance and have<br />
$2.20 a year dividend with the same<br />
money for which the old line com<br />
panies would give him $1,000 worth<br />
of insurance and 80 cents dividend.<br />
A co-operative insurance company<br />
is run without expensive offices, high<br />
salaried officials, big commission to<br />
agents, and the creation of great re<br />
serves. It is simply insurance in the<br />
interest of the insured. That makes<br />
it cheap and uncomplicated. Unfor<br />
tunately it gets no advertising. It is<br />
not boomed by the press, by bankers,<br />
and an army of agents. It must<br />
make headway purely on its merits.<br />
But that is the story of the whole<br />
Co-operative Movement. It goes on<br />
growing slowly and steadily. The<br />
wise, the thrifty and socially minded<br />
come in; the gullible and those who<br />
are easily led by pretense and loud<br />
noise stay out. Slowly and surely the<br />
advantages of the co-operative meth<br />
od will make their impression upon<br />
society. A great biological prin<br />
ciple is at work. The survival of the<br />
fittest means the success of Co<br />
operation.<br />
LIGHT AHEAD<br />
The decay of the profit system is<br />
now far advanced. But the comple<br />
tion of the decay will take many<br />
years more. History is long. The<br />
life of the individual is short. Still<br />
the past ten years has brought a<br />
great change. Less than ten years<br />
ago the German mark was as sub<br />
stantial as any currency in the world.<br />
In 1913, when the German mark was<br />
worth about twenty-five cents, if any<br />
economist had said that the mark of<br />
that great country in less than ten<br />
years would be of so little value that<br />
seventy-five could be bought for a<br />
cent, he would have been laughed at.<br />
A greater depreciation has taken<br />
place with the money of Russia which<br />
was one of the allied nations. Let<br />
not the people of the "favored na<br />
tions" vaunt themselves; their gov<br />
ernments are infected with the same<br />
disease. The purchasing power of<br />
money throughout the whole world is<br />
depressed.<br />
The weakness of the economic sys<br />
tem, which caused the war and which<br />
is responsible for the great changes<br />
now going on, rests in the fact that<br />
its purpose is creating privilege. The<br />
quest for profits to secure capital,<br />
which may be invested, to provide in<br />
come, is the vicious circle.<br />
Increasing taxes and an increasing<br />
number of people who do not work,<br />
but who must be supported by labor,<br />
will presently make the burden un<br />
bearable.<br />
After more governments have col<br />
lapsed and more discontent has arisen,<br />
something radical will have to be<br />
done. The State will step in and per<br />
form this function of regulating pro<br />
fits. This will diminish the disorder<br />
arising from profit-taking; but it will<br />
not cure it.<br />
Just as in the first century, when<br />
the Roman Empire was disturbed by<br />
business failures, strikes and panics,<br />
things were stabilized for a while by<br />
the abolishing of all interest on capi<br />
tal for a period of three years. It<br />
was the brutal and corrupt Emperor<br />
Tiberius who took this action in the<br />
year 33 in the interest of perpetuat<br />
ing the power of the privileged class.<br />
While expedients such as these<br />
might prevent the collapse of the<br />
present system, it is doubtful if the<br />
leaders of big business and finance<br />
will be capable of concerted action<br />
to that end. It is also doubtful if they<br />
would take such action in time to be<br />
. effective. The natural tendency has<br />
always been to enjoy profit-getting<br />
to the full and to cherish a blind sense<br />
of security in the strength of their<br />
own position until the causes of its<br />
downfall are too far advanced for<br />
repairs.<br />
The modern investor, seeking an<br />
outlet for the enormous capital which<br />
labor has created, has produced im<br />
perialism which is both ruthless and<br />
insane in its hunger for returns.<br />
The prostration of central Europe,<br />
and the progressive involvement of<br />
England, France, Japan and the<br />
United States in imperialistic rivalry,<br />
are the results thus far. Once the big<br />
financiers made their investments at<br />
their own risk; now the governments<br />
have become their tools. Wars, ship<br />
ping subsidies, protective tariffs and<br />
a multitude of privileges are now ex<br />
acted of governments by the great<br />
investing combines.<br />
As the people view the holocaust<br />
of these attacks upon the resources<br />
of the public, they must realize that<br />
if this continues there is nothing but<br />
darkness and chaos ahead.<br />
But some see a brighter future.<br />
Through the murk they discern a<br />
light shining, held aloft by the wise.<br />
That light shows 30,000,000 people<br />
working in the co-operative societies<br />
eliminating the profit motive from<br />
the affairs of man. This points the<br />
way; this furnishes the means; this<br />
is the saving remedy. It remains to<br />
be seen whether the suffering peo<br />
ples will follow this light, or go<br />
blindly on with the old profit-mak<br />
ing procession into still darker val<br />
leys.<br />
1
202 <strong>CO</strong>-<strong>OPERATION</strong><br />
THE THIRD <strong>CO</strong>-OPERATIVE <strong>CO</strong>NGRESS<br />
The Third National Congress of<br />
The Co-operative League at Chicago,<br />
111., October 26, 27 and 28, brought<br />
together seventy delegates of con<br />
stituent societies, from sixteen dif<br />
ferent states, and thirty fraternal<br />
delegates, besides a large number of<br />
individuals interested in Co-operation,<br />
and representatives from labor bodies.<br />
The program of the congress was so<br />
complete that interest could hardly<br />
lag for a moment. One thoughtful<br />
report followed another, each on dif<br />
ferent phases of Co-operation. Not<br />
only was valuable information ex<br />
changed by co-operative managers<br />
and experts, but the congress voted<br />
for action on many important ques<br />
tions.<br />
Dr. J. P. Warbasse called the con<br />
gress to order Thursday, October 26,<br />
at 10 a. m. After the appointment<br />
of committees, Agnes Nestor, repre<br />
senting the Chicago District League,<br />
and Alice Henry, on behalf of the<br />
Women's Trade Union League, greet<br />
ed the congress. Greetings were re<br />
ceived from the International Co-op<br />
erative Alliance, from foreign co<br />
operative bodies all over the world<br />
(one coming from New Zealand),<br />
from American societies which could<br />
not have representatives present, and<br />
from individuals. A letter from Eu<br />
gene V. Debs expressing his warmest<br />
approval of the work of The League<br />
evoked great applause.<br />
The president delivered the keynote<br />
address of the congress in the after<br />
noon session of the first day's pro<br />
gram. S. Alanne, Educational Direc<br />
tor of the Co-operative Central Ex<br />
change of Superior, Wisconsin, then<br />
reported for the Committee on Co<br />
operative Education. Many concrete<br />
proposals for furthering education in<br />
co-operative principles were adopted.<br />
The Committee on Co-operative Leg<br />
islation submitted for approval the<br />
Model State Co-operative Law, draft<br />
ed by the committee. The congress<br />
unanimously approved the model law,<br />
and recommended that the procedure<br />
outlined by the Committee on Legis<br />
lation, for promoting the model law,<br />
be followed.<br />
In the evening session, with Mr. L.<br />
S. Herron presiding, W. C. Lansdon,<br />
National Organizer of the Farmers'<br />
Co-operative and Educational Union<br />
of America, told the fascinating story<br />
of the development of producers' and<br />
consumers' Co-operation among the<br />
farmers of the country. The farmers<br />
are now marketing five billion dollars'<br />
worth of their products through their<br />
own organizations, eliminating the<br />
"men in No-Man's Land"—the mid<br />
dlemen. In addition to co-operative<br />
marketing, the farmers are supplying<br />
themselves with far in excess of<br />
$100,000,000 worth of farm machin<br />
ery, clothing and other necessities.<br />
Annie S. Bromley, who had repre<br />
sented The League at the Congress<br />
of Women's Guilds in England early<br />
this year, reported on the Women's<br />
Guilds in America.<br />
The Friday morning session of the<br />
congress was presided over by War<br />
ren S. Stone, Grand Chief of the<br />
Brotherhood jof Locomotive Engi<br />
neers. Mr. Stone made the significant<br />
announcement that within ninety<br />
days a co-operative bank would be<br />
established for the first time in New<br />
York City. "We are going down<br />
among the powers that be, and we are<br />
going to play the game with them,"<br />
said Mr. Stone. He further advocated<br />
the control of credit by workers and<br />
farmers, through the organization of<br />
co-operative banks, which would ena<br />
ble the people to finance and ultimate<br />
ly secure control of the basic indus<br />
tries of the country.<br />
Walter F. McCaleb, former manager<br />
of the Brotherhood Co-operative Bank<br />
and an authority on co-operative bank<br />
ing, presented a report on the progress<br />
made towards the organization of<br />
labor banks since the last co-operative<br />
congress. The locomotive engineers<br />
had secured a national banking char<br />
ter, and had opened their bank No<br />
vember, 1920, with resources of $650,-<br />
000. Within two years the resources<br />
grew to $19,000,000. This bank, it<br />
was reported, pays a higher interest<br />
rate to depositors than any other of<br />
the banks of Cleveland. It limits the<br />
profit of shareholders to 10 per cent,<br />
the balance being returned to depos<br />
itors. "We have had great joy," said<br />
Dr. McCaleb, "in telling many employ<br />
ers who were fighting for the open<br />
shop, when they came to us begging<br />
for credit, that when they came back<br />
and made peace with their men, they<br />
could get credit, and not before. And<br />
some of us were glad to see that<br />
some of these employers have had<br />
to close up their doors." The Brother<br />
hood Bank has secured control of a<br />
bank in Hammond, Indiana, and has<br />
also aided in the organization of half<br />
a dozen other banks. Inquiries have<br />
been received from labor bodies in al<br />
most every state in the union, which<br />
are prepared to start co-operative<br />
banks within a short time.<br />
The report of the Committee on Co<br />
operative Banking was supplemented<br />
by Miss Caro D. Coombs, a member<br />
of the committee, who reported on the<br />
Development of Credit Unions. The<br />
need for distinguishing between labor<br />
banks and credit unions was empha<br />
sized. It was reported that there are<br />
now eighty-six credit unions in New<br />
York, which in 1921 had total re<br />
sources amounting to $4,445,297, mak<br />
ing loans of $3,904,583 during the<br />
year. In Massachusetts, where at the<br />
end of 1921 there were eighty-two<br />
credit unions in operation, the total<br />
resources amounted to $4,047,172 and<br />
the total loans to members to over<br />
$3,003,765.<br />
Other sessions of the second day of<br />
the congress were occupied with re<br />
ports on technical phases of Co-opera<br />
tion.<br />
Experts delivered instructive talks<br />
on various kinds of co-operative enter<br />
prises—stores, restaurants, housing,<br />
dairies, etc. Mary E. Arnold, man<br />
ager of "Our Co-operative Cafeteria,"<br />
reported that this cafeteria, with a<br />
membership of 1,000, mostly women,<br />
is conducting three branches in New<br />
York City, one in the heart of the<br />
<strong>CO</strong>-<strong>OPERATION</strong> 203<br />
financial district, with a turnover of<br />
$300,000 a year. Ed. Solem, manager<br />
of the Franklin Co-operative Cream<br />
ery of Minneapolis, told the thrilling<br />
story of how the locked-out milk driv<br />
ers of Minneapolis had helped to or<br />
ganize a co-operative dairy now owned<br />
and controlled by 6,000 consumers.<br />
Within a year and a half, this dairy<br />
had grown to a business supplying<br />
$1,500,000 worth of dairy products<br />
annually. The price of milk was cut<br />
from 13 to 10 cents a quart, and the<br />
quality of milk was improved to such<br />
an extent that, according to the<br />
Health Commissioner of Minneapolis,<br />
deaths from typhoid were practically<br />
wiped out, and infant mortality con<br />
siderably lowered. The surplus-sav<br />
ings of the co-operative dairy are<br />
given back as savings-returns to the<br />
patrons. Two plants, worth $700,-<br />
000, are already owned by this<br />
co-operative. The committee's report<br />
showed that other cities have organ<br />
ized dairies owned and managed by<br />
consumers. Waukegan, Illinois, has<br />
a model co-operative dairy, and Cleve<br />
land, Ohio, recently saw the opening<br />
of a dairy which was organized<br />
through the aid of The Co-operative<br />
League and the Franklin Creamery.<br />
John H. Walker, President of the<br />
Illinois Federation of Labor, present<br />
ed the report on the relationship be<br />
tween the Labor and Co-operative<br />
Movements. The report advocated<br />
that every central labor body have a<br />
co-operative adviser. Recommenda<br />
tions were made for the appointment<br />
of a member of The Co-operative<br />
League to the Committee on Co-opera<br />
tion of the American Federation of<br />
Labor.<br />
The report of the Committee on Co<br />
operative Housing was presented by<br />
its chairman, Mayor Daniel W. Hoan,<br />
of Milwaukee, Wis. The information<br />
on the co-operative housing society<br />
of Milwaukee aroused great interest.<br />
This is the first large-scale attempt<br />
in an American municipality to meet<br />
the housing crisis on a strictly co<br />
operative basis. Twenty-eight acres<br />
of land were purchased, on which<br />
ninety homes were built. Nine hun-
204 <strong>CO</strong>-<strong>OPERATION</strong><br />
dred applications were received from<br />
prospective co-operative tenants for<br />
the first homes to be built. It is hoped<br />
to have a thousand homes built with<br />
in a short time. The enterprise was<br />
financed by loans obtained from the<br />
city, the county, and individuals.<br />
Tenant members buy stock in the as<br />
sociation, equivalent to the value of<br />
the property they are to occupy. They<br />
obtain a perpetual lease but do not<br />
have title to the property. The rent<br />
paid is used to defray the actual op<br />
erating costs, and to retire the pre<br />
ferred stock now held by those who<br />
furnished the capital for the housing<br />
society.<br />
Otto Endres, President of the Utica<br />
Co-operative Society, presented the<br />
report of the Committee on Store<br />
Management Problems. Ernest Aim,<br />
Manager of the Roseland Co-operative<br />
Society, of Chicago, reported for the<br />
Committee on How to Meet Competi<br />
tion. Dr. G. L. Kennedy, President<br />
of the Villa Grove Society, presented<br />
the report on Co-operative Distribu<br />
tion of Coal. Reports were also re<br />
ceived from T. D. Stiles on Credit<br />
Trading, from Louis B. Blachley on<br />
Co-operative Laundries, and from<br />
John Nummivuori on Co-operartive<br />
Wholesaling, these gentlemen being<br />
the chairmen of their respective com<br />
mittees.<br />
The Saturday morning session was<br />
an executive session of The League.<br />
A full discussion was held on the re<br />
lation of District Leagues to The Co<br />
operative League and on the functions<br />
to be performed by The League, stim<br />
ulated by the report of Leslie E.<br />
Woodcock, President of the New York<br />
City Co-operative Federation. It was<br />
the consensus of opinion among the<br />
delegates that the support given by<br />
the constituent members of The<br />
League should be increased.<br />
The congress elected by acclama<br />
tion the following as Directors of The<br />
Co-operative League: James P. War-<br />
basse, A. P. Bower, W. Niemela, L. S.<br />
Herron, J. Nummivuori, W. C. Lans-<br />
don, A. Sonnichsen, S. Alanne, John<br />
H. Walker, Thos. J. Donnelly, Daniel<br />
W. Hoan, J. F. McNamee, R. H. Salter,<br />
R. A. McGowan, Jos. Schlossberg,<br />
Emerson P. Harris, and Warren S.<br />
Stone.<br />
Alternate Directors elected were<br />
the following: W. F. McCaleb, James<br />
Maurer, Mary E. Arnold, W. H. Clos-<br />
ser, Thomas Bell, Frederic C. Howe,<br />
L. J. Salch, A. W. Warinner, Ed.<br />
Solem, and Leslie Woodcock.<br />
The congress passed resolutions<br />
demanding the release of political<br />
prisoners, advocating that preference<br />
be given by co-operatives to union<br />
label goods, creating a committee to<br />
raise $50,000 among unionists and<br />
farmers for the promotion of Co<br />
operation, recommending the creation<br />
of co-operative schools throughout<br />
the country, appointing a joint com<br />
mittee to work in harmony with the<br />
Workers' Educational Bureau, and<br />
recommending to state federations of<br />
labor the appointment of authorized<br />
co-operative advisers whose qualifica<br />
tions are passed upon by The Co-op<br />
erative League.<br />
A significant step was the decision<br />
of the congress to bring about a work<br />
ing agreement between The Co-opera<br />
tive League, the All-American Co-op<br />
erative Commission, and the Bureau<br />
on Co-operation of the American Fed-<br />
era*ion of Labor<br />
Following the executive session of<br />
The League, the report on Co-opera<br />
tive Taxation was made by the chair<br />
man of the committee, H. Rappaport.<br />
The organization of co-operative<br />
study groups was reported upon for<br />
the Committee on Intercollegiate Co<br />
operative Society by Rev. Joseph<br />
Reiner.<br />
Andrew P. Bower, chairman of the<br />
Committee on Spurious Co-operatives,<br />
reported on the tragic effects of these<br />
organizations which have preyed upon<br />
the people. His report showed how<br />
most of them have now been driven<br />
out of existence since the second co<br />
operative congress. The report esti<br />
mated that at least $15,000,000 have<br />
been lost to workers during the past<br />
three years through the operations of<br />
fake co-operatives, which were in re<br />
ality nothing but wild-cat stock-sell-<br />
ing schemes. A resolution was pass<br />
ed condemning the "Co-operative"<br />
Society of America, with headquar<br />
ters in Chicago, as a menace to the<br />
genuine co-operatives of the coun<br />
try. A keen observer of conventions<br />
summed up the Co-operative Congress<br />
in these words: "Here was a group<br />
who are buckling down to do the<br />
things the world needed to have done;<br />
simple deeds—baking loaves of bread,<br />
distributing milk, serving pure food<br />
from behind the counter, building<br />
homes for the workers, supplying<br />
credit on easy terms to needy workers<br />
and farmers—yet behind the doing<br />
was the biggest idealism any of us are<br />
capable of. In this age when all of<br />
us are groping for the way out, most<br />
of us take it out in talking. But you<br />
couldn't sit in that congress of The<br />
Co-operative League and not realize<br />
that the daily lives of these men and<br />
women were the translation into ac<br />
tion here and now of their highest<br />
ideals."<br />
REPORT FROM NEBRASKA<br />
One of the best reports of the Chi<br />
cago congress is found in the "Ne<br />
braska Union Farmer." The congress<br />
was reported by its editor, L. S. Her<br />
ron. The report says that:<br />
"Co-operation in all its phases was<br />
covered in the program. The League is<br />
a federation of consumers* co-opera<br />
tive societies, hence the program was<br />
concerned mainly with consumers' Co<br />
operation; however our own W. C.<br />
Lansdon, national lecturer of. the<br />
Farmers' Union, occupied most of one<br />
evening session telling of the progress<br />
and problems of the farmers' co-op<br />
erative organizations—and he made a<br />
decided hit. 'Perfectly fascinating,'<br />
was the verdict of President War-<br />
basse of The League.<br />
"Now please do not get the notion<br />
that outside of Mr. Lansdon's address<br />
what happened at this congress was<br />
of no interest to farmer Co-operators.<br />
Read on and see. Our farmers' Co<br />
operative Movement is double-bar<br />
relled ; we co-operate in buying as well<br />
as selling. All of the discussions of<br />
Co-operation from the consumers'<br />
<strong>CO</strong>-<strong>OPERATION</strong> 205<br />
standpoint were applicable to our co<br />
operative buying undertakings. More<br />
over, the problems of education, loy<br />
alty, financing, and business manage<br />
ment are much the same in either<br />
type of Co-operation. The farmer<br />
representatives in the congress, of<br />
which there were several, felt very<br />
much at home."<br />
The entire proceedings of the con<br />
gress are summarized by the Editor.<br />
He states that Mr. Lansdon showed<br />
how farmers have also developed their<br />
own insurance companies to insure<br />
their property and crops. Through<br />
their live stock shipping associations<br />
they send their stock to their own co<br />
operative live stock commission<br />
agencies. The chain of three com<br />
mission houses operated by the Ne<br />
braska Farmers' Union is the larg<br />
est single co-operative business in<br />
the world.<br />
Mr. Lansdon's address brought out<br />
many questions. One of these was in<br />
regard to the effect of the commodity<br />
marketing organizations in boosting<br />
prices to consumers. Mr. Lansdon ex<br />
plained that the gains made by farm<br />
ers in this way came at the expense<br />
of speculators and middlemen. The<br />
idea was to distribute products evenly<br />
throughout the year, instead of try<br />
ing to make consumers take a year's<br />
supply in a few months.<br />
TRANSACTIONS OF THE THIRD<br />
<strong>CO</strong>-OPERATIVE <strong>CO</strong>NGRESS<br />
The complete report of the Third<br />
Co-operative Congress will be ready<br />
in a few days.<br />
Those who want a birds-eye view<br />
of Co-operation in the United States<br />
will find it in these transactions. The,<br />
national congress is the only occasion<br />
on which all Co-operators from all<br />
parts of the country come together<br />
for reports and discussion.<br />
A SYMBOL AND A WORD<br />
In December, 1920, The Co-opera<br />
tive League offered a prize for a sym<br />
bol and a word that could be copy<br />
righted and used exclusively to desig<br />
nate true co-operative societies. More<br />
than a hundred symbols and words<br />
were submitted. Some came from as
Ji'P<br />
206 <strong>CO</strong>-<strong>OPERATION</strong> <strong>CO</strong>-<strong>OPERATION</strong> 207<br />
far as Switzerland. Many of these<br />
were very meritorious. Some repre<br />
sented a high degree of artistic talent.<br />
Many presented symbolism which dis<br />
played a large grasp of the meaning<br />
of Co-operation. But the committee<br />
was not able to agree upon any one.<br />
The symbols that were artistic were<br />
too complicated and difficult of re<br />
production. Those that were simple<br />
and symbolic lacked symmetry and<br />
artistic quality. No word that was<br />
submitted was found acceptable.<br />
After repeating the announcement<br />
in this magazine three times during<br />
the past two years, and still not re<br />
ceiving a symbol and word that could<br />
be adopted, the Executive Board set<br />
to work to create the symbol and<br />
word. After several weeks of trial<br />
with many designs, the following seal<br />
was adopted.<br />
The pine tree is the ancient symbol<br />
of endurance, fecundity, and immor<br />
tality. Those are the qualities that<br />
we see in Co-operation. In the old<br />
Egyptian, Persian and Indian myth<br />
ology, the pine tree and its symbol,<br />
the pine cone are found typifying life<br />
and the perpetuation of life. The<br />
hardy pine symbolizes the enduring<br />
quality of Co-operation. More than<br />
one pine is used to represent the mu<br />
tual co-operation necessary. The<br />
trunks of the pine trees are continued<br />
into the roots which form a circle.<br />
The circle is another ancient symbol<br />
of eternal life. It typifies that which<br />
has no end. The circle in this picture<br />
represents also the world, the all-em<br />
bracing cosmos, of which Co-opera<br />
tion is a part and which depends for<br />
its existence upon Co-operation.<br />
The colors of the two pines and the<br />
circle are dark green; this is the color<br />
of chlorophyl which is the life prin<br />
ciple in nature. The background<br />
within the circle is golden yellow, typ<br />
ifying the sun, the giver of light and<br />
life.<br />
C L U S A<br />
It is composed of the first letter of<br />
each major word of The Co-operative<br />
League of the United States of<br />
America.<br />
It may be represented as follows:<br />
Both the seal and the; word have<br />
been copyrighted and patented by<br />
The League. Their use without the<br />
consent of The League is illegal and<br />
will be prosecuted.<br />
Co-operative societies which are<br />
members of The League in good<br />
standing may make application for<br />
the use of the symbol and the word,<br />
and will be granted the privilege of<br />
displaying either or both on their<br />
goods, publications, signs, vehicles,<br />
and stationery. The word may be<br />
used in combination with the symbol<br />
as shown below.<br />
When the word and symbol are re<br />
produced together in colors the word<br />
C L U S A should be in red.<br />
In the course of time the display<br />
of this seal will come to distinguish<br />
bonafide co-operative consumers' so<br />
cieties. The purpose of the seal has<br />
been to make it possible for true so<br />
cieties to be easily identified in a<br />
country where such identification is<br />
sorely needed. "Clusa" products<br />
should become the standard of purity<br />
and excellence.<br />
LET'S WORK TOGETHER<br />
Extracts from Report Presented to the Third Co-operative Congress<br />
By LESLIE E. WOOD<strong>CO</strong>CK<br />
"Our Cafeteria," New York<br />
We are met in our Third National<br />
Congress. What is its significance<br />
for the future?<br />
Unity, Solidarity, Organization;<br />
these are the things that we felt<br />
there. But the inspiration gained is<br />
of no value if it does not result in<br />
definite action.<br />
For exactly the; same reason that<br />
individuals must unite in a local soci<br />
ety to carry on business by joint<br />
strength, societies must join together<br />
if they hope to carry on business on<br />
a larger scale. As societies, we<br />
"must hang together or we will hang<br />
separately."<br />
In my mind's eye I see over the<br />
door of The Co-operative League<br />
House in New York this legend:<br />
"This League is established by<br />
the Consumers' Co-operative<br />
Societies of the United States<br />
to accomplish by mutual aid<br />
the following purposes:<br />
"1. To spread a knowledge of<br />
the history, aims, principles, and<br />
methods of the Consumers' Co<br />
operative Movement.<br />
"2. To give technical expert<br />
advice and assistance to one an<br />
other."<br />
It is upon the second of these two<br />
purposes that I would have societies<br />
now concentrate their effort. We<br />
already have the business and legal<br />
experts whom we need. We have<br />
our expert managers, members of<br />
our boards of directors, our ac<br />
countants, and the loyal members of<br />
our societies who would gladly give<br />
time and service.<br />
Expert Service Through District<br />
Leagues<br />
1. A District League should have<br />
an executive committee of managers<br />
or business men who would keep in<br />
touch with the business reports of<br />
all societies and would be in a posi<br />
tion to make a thorough investiga<br />
tion of any society which requested<br />
it. Such an investigation made by<br />
fellow Co-operators, who would un<br />
derstand the situation and who were<br />
themselves business men, would be<br />
of the greatest assistance.<br />
2. Its officers should keep in touch<br />
with half a dozen lawyers in the dis<br />
trict who are sympathetic to Co<br />
operation, and keep those men fully<br />
informed as to the growth and sig<br />
nificance of the Co-operative Move<br />
ment, so that they may be called upon<br />
for up-to-date advice at any time.<br />
3. Its officers should have a list of<br />
the accountants working for co-opera<br />
tive societies, who know how to ad<br />
vise for good business organization<br />
and who are also friendly to Co-opera<br />
tion. We have several such account<br />
ants in New York whose advice would<br />
be worth everything to a society just<br />
getting on its feet or one which is in<br />
financial difficulty.<br />
4. It should take steps to see that<br />
every genuine co-operative society in<br />
the district is brought into the Dis<br />
trict League and is given a chance t-j<br />
contribute to the work of the district.<br />
5. It should assist the national or<br />
ganization in every way in the promo<br />
tion of co-operative education.<br />
6. It should keep the national<br />
League informed of all happenings in<br />
the district, and call upon it for ad<br />
vice and aid when it is needed.<br />
7. Most important, as a means to<br />
the rest, its executive committee<br />
should have at least one full time<br />
paid worker whom we would call the<br />
District Adviser, who would spend<br />
his whole time carrying out the di<br />
rections of that committee. He would,<br />
in fact, be the person to draw up re<br />
ports, to make investigations of false<br />
co-operatives, to interview the law<br />
yers when advice is required, and in<br />
general do all the things that a paid<br />
worker can do when a committee<br />
itself is giving only part time in addi<br />
tion to their own jobs.<br />
In the beginning I would have the<br />
district organization somewhat in<br />
formal, letting the appeal of mutual
208 <strong>CO</strong>-<strong>OPERATION</strong><br />
help bind us together. As we become<br />
better and better acquainted we are<br />
going to conduct joint buying, then<br />
we are going to run wholesales; we<br />
must get together any way that we<br />
can at first. Beginning as a small<br />
fellowship, we must plan to work out<br />
great things.<br />
Service by the National Office<br />
Now, how about the national of<br />
fice of The League itself? How can<br />
it help us?<br />
I would have its work divided into<br />
two departments, one of which would<br />
promote co-operative education, pro<br />
vide lecturers, publish pamphlets and<br />
literature, and interpret to us contin<br />
ually the spiritual side of Co-opera<br />
tion.<br />
The other department I would call<br />
the Service Department, and it is to<br />
this that we workers in District<br />
Leagues would turn for help and ad<br />
vice. Large legal questions of all<br />
kinds, income tax problems, index<br />
numbers, and operating costs for all<br />
kinds of business would be worked<br />
out in that department.<br />
There should not be a large staff<br />
I 'iere, but an efficient one. As a min<br />
imum, I should say the national Serv<br />
ice Department should have someone<br />
who has had legal training, someone<br />
who has had experience in co-opera<br />
tive business management, and then<br />
in addition a first-class accountant,<br />
whose job would not be merely to<br />
check figures, but to tell us when we<br />
are running on too low reserves,<br />
when our money is badly invested,<br />
how to make better and simpler re<br />
ports to our members, etc.<br />
These experts would be available to<br />
us at all times. They would come to<br />
our District on request to give what<br />
ever advice we wanted at the time.<br />
The accountant ought to make reg<br />
ular trips over the country to advise<br />
directly with our local auditors, and<br />
then ought to make independent re<br />
ports directly to us as to the char<br />
acter of auditing service we are get<br />
ting. Books are very technical things,<br />
and we need an accountant who is an<br />
expert in interpreting those technical<br />
things from a co-operative point of<br />
view and who can bring the co-opera<br />
tive experience of the whole country<br />
to bear upon local problems.<br />
Let's Pay for It<br />
The report of The Co-operative<br />
League for the last two years shows:<br />
1. Nearly $40,000 spent;<br />
2. Less than $650 duefe paid by<br />
Co-operative Societies.<br />
Think of it! A little over $300 a<br />
year from societies representing more<br />
than half a million Co-operators!<br />
The simple fact is that we cannot<br />
be a "league" of co-operative soci<br />
eties until we pay the bills of our<br />
organization. It is a wonderful thing<br />
that individuals of broad vision and<br />
human understanding should con<br />
tribute their time and their money<br />
for a great social movement. They<br />
are the salt of the earth.<br />
But my plea is for a League of<br />
Societies that will "accomplish by<br />
mutual aid"; a really autonomous<br />
union of self-respecting organizations<br />
which will justify and requite the de<br />
votion that has been given so gen<br />
erously. How Pay for It?<br />
We will have to pay dues. I would<br />
suggest a choice of two kinds of dues:<br />
1. Twenty-five cents per member<br />
(ten for the national League, fifteen<br />
for the District League), or<br />
2. One-tenth of one per cent of the<br />
gross turnover of business (two-<br />
fifths to the national League, three-<br />
fifths to the District League).<br />
There are different ways of raising<br />
this money—from the treasury, from<br />
socials, dances or from special contri<br />
butions of members.<br />
Two Questions<br />
I would like to suggest these two<br />
questions for answer:<br />
1. Would a business service given<br />
by successful co-operatives, on ac<br />
counting, legal and business manage<br />
ment problems, be a desirable means<br />
of helping new societies get started<br />
or old ones to get over difficult places ?<br />
2. Would you be willing to pay for<br />
such service rendered?<br />
Will you write your answer to The<br />
Co-operative League?<br />
<strong>CO</strong>-<strong>OPERATION</strong><br />
OBSERVATIONS OF <strong>CO</strong>-OPERATIVE BAKERIES<br />
Abstract of report delivered to<br />
Third Co-operative Congress:<br />
This is not an expert's paper on<br />
bakeries. It is not by a bakery man<br />
ager nor even by member of a co<br />
operative bakery. Therefore the dis<br />
cussion is necessarily limited in its<br />
scope and in its value. The chairman<br />
of the committee on bakeries failed<br />
to make his report and this is a sub<br />
stitute; a brief summary of informa<br />
tion gathered from seven or eight<br />
bakeries in the East in the Spring of<br />
<strong>1922</strong>.<br />
Status of Co-operative Bakeries<br />
There are probably no more than<br />
seventy-five co-operative bakeries in<br />
the United States at the present time.<br />
Fifteen of these are Jewish, three or<br />
four Italian, ten or fifteen Finnish or<br />
Swedish, the rest American or mixed.<br />
Two or three of the bakeries have a<br />
membership of more than 2,000—<br />
most of them are much smaller; mem<br />
bership ranging from 60 to 600. The<br />
greater number of co-operative baker<br />
ies are in the East—Massachusetts,<br />
New York, New Jersey. In many<br />
respects the bread requirements of<br />
the Jewish people differ from those<br />
of the American, those of the Italian<br />
from those of the Swedish; and there<br />
fore the problems vary somewhat.<br />
Organization<br />
The problem of organization is a<br />
co-operative problem rather than a<br />
bakery problem, and therefore re<br />
quires no extensive discussion here.<br />
However, competition in the bakery<br />
business is now about as sharp, the<br />
methods as unscrupulous as in the<br />
grocery or restaurant business. In<br />
experienced Co-operators, talking<br />
glibly about the huge profits in bread<br />
and other food stuffs are not the peo<br />
ple to start any kind of co-operative<br />
business.<br />
No new bakery should be plan<br />
ned until a careful survey of the<br />
community has been made; of the<br />
bread needs of the community, of<br />
the possible number of supporters<br />
for a bakery, the number of com<br />
By CEDRIC LONG<br />
209<br />
petitors already in the field, their<br />
way of doing business, their prices,<br />
their advertising methods, their<br />
weakness, their profits (if such fig<br />
ures can by any hook or crook be<br />
obtained). Co-operators must adopt<br />
modern practices: the survey is one<br />
of them; it must be made by com<br />
petent people and the recommenda<br />
tions scrupulously followed. Are<br />
workingmen Co-operators ready for<br />
such painstaking preparation as<br />
this? Manager<br />
A preliminary search should also<br />
be made for a man competent to<br />
manage a co-operative bakery, and<br />
for a suitable site for a building or<br />
old building which may be rented.<br />
The manager of a bakery must be<br />
a Co-operator.<br />
I do not think it essential that<br />
the manager be an experienced<br />
baker, acquainted with all the tech<br />
nique of mixing and baking bread.<br />
He can get a good master baker to<br />
take charge of all that work. The<br />
manager will have all he can do if<br />
he adequately handles the problems<br />
of buying, selling, organization of<br />
delivery, with a general supervision<br />
of the workers and working condi<br />
tions and discipline.<br />
Capital<br />
The question of capital necessary<br />
for beginning operations varies.<br />
Generally, managers recommend a<br />
minimum of $3,000 to $5,000. Money<br />
must also be reserved for contingen<br />
cies, for almost all bakeries operate<br />
at a loss for from six months to three<br />
years. Directors<br />
The directors should not be the<br />
most affable and most talkative men<br />
in the society: the kind who always<br />
get themselves elected to office in<br />
every organization from the Men's<br />
Bible Class to the local Association<br />
for the repeal of the 18th Amend<br />
ment; but the best men available.<br />
Labor Problem<br />
No co-operative association about<br />
to go into baking of bread should
'<br />
210 <strong>CO</strong>-<strong>OPERATION</strong> <strong>CO</strong>-<strong>OPERATION</strong> 211<br />
fail to establish from the very be<br />
ginning friendly relations with the<br />
local bakers' union. An early con<br />
sultation with union officials may<br />
forestall some very serious misun<br />
derstandings later-<br />
Starting the Business<br />
A few societies have been able to<br />
rent not only the building, but ovens<br />
and sifter and mixer as well. This<br />
makes it possible to begin with small<br />
capitalization, but high rentals eat<br />
up any possible profits. Rental for<br />
building alone usually seems to run<br />
from 11-3 per cent to 3 per cent of<br />
month's sales; 3 per cent is too high.<br />
Distribution<br />
Wrapping and Handling.<br />
Most of the bakeries in the larger<br />
cities, especially those that bake for<br />
American trade, find they have to<br />
wrap their bread. The large cor<br />
porations do it and force others to<br />
follow suit.<br />
I find most managers are satisfied<br />
to get from the bread baker a mere<br />
statement of amount of flour used<br />
each day, and from that figure a de<br />
duction as to 'how many loaves<br />
there must be. Loaves actually baked<br />
should be counted. If any control sys<br />
tem were in effect with perpetual in<br />
ventory, of course the manager would<br />
have to keep these figures.<br />
Selling<br />
I find some bakeries are selling<br />
loaves retail at wholesale prices to<br />
purchasers who come to buy direct<br />
ly from the bakery;—a practice un<br />
fair to some of the members. Whole<br />
sale prices seem to range all the way<br />
from 15 per cent to 25 per cent be<br />
low retail depending on the local<br />
market. Most managers report that<br />
they make no profit whatever from<br />
wholesale sales. In bakeries like<br />
that at Lynn, Mass., where 95 per<br />
cent of the sales are retail, this<br />
makes little difference, but few man<br />
agers can boast of such a high per<br />
cent of retail business.<br />
Delivery<br />
Profits on retail delivery are usu<br />
ally zero or worse. The most suc<br />
cessful bakeries are those that don't<br />
have to or refuse to meet this kind<br />
of competition. One manager re<br />
ports that only one per cent of his<br />
profits are from delivery sales,<br />
another 3 per cent, a third 2 per<br />
cent, another a loss.<br />
Delivery expenses are a vexing<br />
question. A few bakeries evade the<br />
difficulty by hiring their delivery<br />
done for them. The Jewish baker<br />
ies in Lynn and in Lawrence, Mass.,<br />
both do this, selling the bread to<br />
this delivery man at wholesale<br />
prices, letting him assume all re<br />
sponsibility for garage rents, up<br />
keep and bad debts. These two<br />
bakeries get off with a two per cent<br />
delivery expense. The Finnish<br />
bakery in Brooklyn pays a straight<br />
commission to drivers, and delivery<br />
overhead comes to 26 per cent.<br />
Maynard and Fitchburg, Mass., pay<br />
straight wages; the former has a 22<br />
per cent overhead. Utica pays<br />
wages plus commission. A small<br />
Jewish bakery in Massachusetts<br />
finds its two trucks running 30 and<br />
39 per cent respectively for over-<br />
'head; they pay straight wages.<br />
Records<br />
Book accounts with bread custom<br />
ers should be absolutely tabooed.<br />
There are a few final figures<br />
which have interest, although they<br />
are gathered from too small a num<br />
ber of bakeries to have much signifi<br />
cance. At Maynard in 1920, 45 per<br />
cent of total manufacturing cost<br />
went to materials, 20% per cent to<br />
labor, 8 1-3 per cent to overhead.<br />
Lynn pays 20 per cent to labor,<br />
while Lawrence pays 45^ per cent.<br />
Education and Publicity<br />
Bread wrappers are used widely<br />
for publicity and education. Utica<br />
distributes to its customers co-oper<br />
ative window cards which they<br />
place in the window when they want<br />
the baker to stop; this advertises<br />
co-operative bread widely. In Sault<br />
Ste. Marie the private grocers are<br />
being pushed to the wall by the five<br />
co-operative stores, but they have<br />
to sell co-operative bread just the<br />
same because of the demand.<br />
SEEN HERE AND THERE<br />
THE SUPERIOR FINNS<br />
Around about Superior, Wisconsin,<br />
are settlements of Finns. Their in<br />
tellectual headquarters were once at<br />
Hancock, northern Michigan, but the<br />
copper and lumber barons becoming<br />
incensed at the service the Finns per<br />
formed for the exploited workers of<br />
that region, destroyed their head<br />
quarters, and threw the leaders into<br />
prison. The Calumet massacre was<br />
one of the incidents of that period.<br />
Then seven years ago the Finns<br />
moved their educational headquarters<br />
to Superior, Wisconsin. Let us see<br />
what they have done for Superior and<br />
what their influence in the com<br />
munity has been.<br />
First they bought a brick building<br />
on a prominent street corner for<br />
$20,000 where they established their<br />
printing plant. This building had<br />
previously been a center of social de<br />
moralization. It had contained a<br />
saloon and a drinking hall. Now one<br />
sees printed there their daily paper<br />
"Tyomies," with a circulation of<br />
12,000. The printing establishment<br />
also turns out books, pamphlets, and<br />
magazines. There is a bookbinding<br />
establishment connected with the<br />
printing house. The building also<br />
houses the Workers' Mutual Savings<br />
Bank, which now has deposits of over<br />
$100,000. There is also a book store<br />
which is the only place in the city<br />
where up-to-date and enlightened<br />
works on modern economics and soci<br />
ology are to be found. Everywhere<br />
in this building are seen the signs of<br />
culture and education. This is what<br />
the Finns did with a pest spot in Su<br />
perior.<br />
Five years ago they had so many<br />
co-operative societies scattered all<br />
through the surrounding country<br />
that these united to form the Co<br />
operative Central Exchange at Su<br />
perior. This is a wholesale consist<br />
ing of about sixty societies. They<br />
bought a building of the Odd Fellows<br />
for $22,000. The wholesale now owns<br />
this building, worth $30,000, machin<br />
ery and equipment worth $15,000,<br />
By J. P. WARBASSE<br />
goods on hand worth $10,000, and a<br />
steadily growing business. This has<br />
all been done with only $7,000 paid-in<br />
capital. The turnover now amounts<br />
to over $300,000 a year. They began<br />
in a small way and are moving for<br />
ward carefully and cautiously. This<br />
wholesale is as sound as a rock. The<br />
Central Exchange conducts a co-op<br />
erative training school where already<br />
over 100 young men and women have<br />
been given full-time technical courses<br />
in co-operative business administra<br />
tion, theory, and history. This is<br />
the recognized co-operative intel<br />
lectual and executive headquarters<br />
of the northern states. It was the<br />
Central Exchange that took the initi<br />
ative in carrying out the program of<br />
The Co-operative League to establish<br />
a district league in the northern<br />
states.<br />
Three years ago the unmarried<br />
Finns organized the Co-operative<br />
Boarding House, "Tarmo" (meaning<br />
"energy"), to provide better homes<br />
for themselves than the hotels and<br />
boarding houses of Superior fur<br />
nished. They bought a hotel which<br />
for years had been the principal<br />
brothel of Superior. They took this<br />
pest house, cleaned it up and made it<br />
sweet and habitable. Now it is a fine<br />
boarding house with fifty-six rooms,<br />
accommodating about seventy-five<br />
members of the society. The large<br />
dining room furnishes good food; the<br />
kitchen is clean; the rooms are light<br />
and wholesome. The groceries come<br />
from the Co-operative Store, the milk<br />
from the Co-operative Creamery. The<br />
members have pure, clean food and<br />
are protected by Co-operation against<br />
the disease-breeding and demoraliza<br />
tion of the poor profit-making board<br />
ing houses. A dark spot in Superior<br />
has been made a center of light.<br />
Two years ago they bought a build<br />
ing on another corner bearing a large<br />
gilt sign across its front reading<br />
"Ideal Beer Saloon." It cost $32,000.<br />
The Workers' Bank loaned $15,000 on<br />
the building. The place had been an
212 <strong>CO</strong>-<strong>OPERATION</strong><br />
evil resort inhabited largely by<br />
drunks, bums, and politicians. The<br />
Finns established there a co-operative<br />
store. They converted several rooms<br />
into one and took out an entire floor<br />
to make an auditorium with a ceiling<br />
two stories high. This room seats<br />
600 people. There is a stage with an<br />
abundant equipment of .scenery and<br />
stage apparatus. Here a drama is<br />
given twice a week. The actors are<br />
the members of the dramatic society.<br />
This building contains class rooms<br />
where study courses are given. It<br />
contains a large dining hall. An or<br />
chestra, a brass band, and a Turn-<br />
verein also meet here. Every night<br />
this building is a scene of business—<br />
wholesome and enlightening recrea<br />
tion and instruction. The Young<br />
People's League brings together the<br />
healthiest looking group of young<br />
people in the city, occupied in whole<br />
some recreations and activities which<br />
express high ideals. This is the trans<br />
formation the Finns have wrought in<br />
the premises of that ancient Ameri<br />
can institution, "The Ideal Beer<br />
Saloon."<br />
Three years ago the Co-operative<br />
Creamery also was established. This<br />
supplies the people with good milk<br />
which is distributed for food pur<br />
poses. It is the only milk distributed<br />
in Superior with that object.<br />
Two years ago they organized the<br />
Co-operative Mutual Fire Insurance<br />
Company. Although limited by re<br />
strictive laws to the State of Wiscon<br />
sin, it already has over 500 members<br />
who are policy holders, and is in good<br />
financial condition, furnishing insur<br />
ance at cost.<br />
These slow-going, methodical, sim<br />
ple-hearted people from the frozen<br />
north constitute the most enlightened<br />
single large element in Superior. Most<br />
of their thinkers and leaders are the<br />
children of peasants. They are pre<br />
eminently the cultured element of the<br />
city. The population of Superior as a<br />
whole is quite unconscious of the<br />
blessings these people have bestowed<br />
upon it. In fact the "respectable"<br />
population of the city is prejudiced<br />
against these Finns because they fail<br />
to understand them. They live in a<br />
different world.<br />
Most of these activities of the Finns<br />
are carried on by the young people.<br />
On the other hand, the young men<br />
who are the descendants of the old<br />
American families are aimlessly loll<br />
ing on the .street corners, smoking<br />
cigarettes, and killing time at the<br />
movies. Neither the municipality,<br />
the church, the school, nor society<br />
provides adequate enlightenment for<br />
them. But the "Americanization"<br />
movement beats its tom-toms in vain<br />
in the Finnish streets of Superior.<br />
If I were asked what is the best thing<br />
that has come to this city, I should<br />
say "Finnization."<br />
The fact that most of the Finns,<br />
who are doing this telling social work,<br />
call themselves socialists, is not espe<br />
cially significant, even though it may<br />
seem dreadful to the great mass of<br />
complacent old-family Americans.<br />
But even if these Finns voted for the<br />
democratic or republican politicians<br />
—or the prohibitionists for that mat<br />
ter—I should still think well of them<br />
—provided that they keep on with<br />
their co-operative work, which has<br />
nothing at all to do with politics. That<br />
is the most significant thing they<br />
are doing; and it is, indeed, the most<br />
significant thing that any group of<br />
people is doing in Superior or any<br />
where else just at this particular<br />
period of the world's history.<br />
THE ASHLAND SOCIETY<br />
At Ashland, Wisconsin, during the<br />
past fifteen years the workers have<br />
been stung by five different "produc<br />
ers' co-operatives." There have been<br />
two boat-building societies, one flour<br />
mill, one coal dock and one knitting<br />
mill. The workers lost their money<br />
in all of these.<br />
Then they decided to organize a<br />
consumers' co-operative .society. This<br />
really succeeded. They now have a<br />
society with nearly 500 members,<br />
with a turnover of $400,000 a year.<br />
They have a general store, a grocery,<br />
and one of the finest meat markets<br />
in that part of the state. They sent<br />
two delegates to the Chicago congress.<br />
<strong>CO</strong>-<strong>OPERATION</strong><br />
A POOR REASON FOR A <strong>CO</strong>-OP<br />
ERATIVE STORE<br />
The miners in Illinois want co-op<br />
erative stores in their towns. They<br />
have learned by experience that the<br />
co-operative store is a good thing.<br />
They do not seem keen to make the<br />
store succeed nor to make Co-opera<br />
tors of themselves; they just want a<br />
store. The reason is that they think<br />
the co-operative store keeps down the<br />
prices among the other tradesmen.<br />
There is a co-operative store in Illi<br />
nois that is run with an overhead ex<br />
pense of 35 per cent on the gross busi<br />
ness. The fact that it is run at a loss<br />
does not seem to bother the members.<br />
Most of them do not patronize it at<br />
all. They do their buying at the pri<br />
vate stores. They just want the co<br />
operative store to keep its doors open<br />
and go through the motions of doing<br />
business to serve as a check upon the<br />
private stores. So long as the co<br />
operative is there, the merchants are<br />
careful not to put up prices. If the<br />
co-operative should close, up would go<br />
the cost of living.<br />
The fact is that Illinois has many<br />
stores kept alive by this peculiar mo<br />
tive. The people are not Co-operators,<br />
but they do know that a co-operative<br />
store is a good thing. Some day when<br />
these people are educated to be Co-<br />
operators they will get a sound reason<br />
for wanting co-operative stores; and<br />
then they will have a great Co-opera<br />
tive Movement. Self-interest is a<br />
strong motive. It can be of much<br />
service in building the co-operative<br />
structure.<br />
AN ADVISER FOR GROTON, N. Y.<br />
The Co-operative Association at<br />
Groton, New York, has been running<br />
for nearly two years, but for some<br />
reasons not clear to the Co-operators<br />
themselves, the business kept run<br />
ning behind. There is no other co<br />
operative within scores of miles of<br />
Groton; the leaders there had not had<br />
experience in co-operative enterprises.<br />
In November they finally wrote to<br />
The League for someone to come and<br />
make a detailed analysis and give<br />
them advice.<br />
213<br />
Mr. Long was sent to Groton, and<br />
remained one week. He found a good<br />
store, well located, loyally supported<br />
by the majority of the membership.<br />
The business has been averaging<br />
$1,000 a week from the beginning.<br />
The manager is a good Co-operator<br />
and is well liked by everyone in town.<br />
The trouble was two-fold: lack of<br />
educational work among the members;<br />
and the attempt to apply, in the man<br />
agement of the business, principles<br />
which had been successful a decade<br />
ago but which were quite incapable of<br />
successful application in the face of<br />
chain store competition. For the chain<br />
.store has revolutionized the grocery<br />
business; and grocerymen, whether<br />
they be co-operative or private, are<br />
headed for bankruptcy unless they<br />
realize this fact and adapt themselves<br />
to it.<br />
In accordance with the findings and<br />
advice of The League adviser, Groton<br />
has now cut down the payroll, reor<br />
ganized the delivery service, curtailed<br />
the credit privileges of the members,<br />
made substantial changes in the ar<br />
rangement and appearance of the<br />
store, and inaugurated an educational<br />
policy. The co-operative work in Gro<br />
ton should prosper from this time on<br />
ward if present indications mean any<br />
thing at all.<br />
THE NEXT INTERNATIONAL<br />
<strong>CO</strong>NGRESS<br />
The executive committee of the In<br />
ternational Co-operative Alliance at<br />
its last meeting at Essen, Germany,<br />
in October last, voted to recommend<br />
to the central committee of the Alli<br />
ance that the next congress be held<br />
at Ghent, Belgium, the first week of<br />
September, 1924. The next meeting<br />
of the central committee of the Al<br />
liance, to act upon this recommenda<br />
tion will be held in Hamburg, in April,<br />
1923. The indications are that the<br />
recommendation to hold the congress<br />
in Ghent will be approved by the cen<br />
tral committee. The American mem<br />
ber of the central committee, Dr. War-<br />
basse, will attend the meeting of the<br />
committee in Hamburg in April.
214 <strong>CO</strong>-<strong>OPERATION</strong><br />
<strong>CO</strong>NVENTION OF NORTHERN<br />
STATES <strong>CO</strong>-OPERATIVE<br />
LEAGUE<br />
The First Annual Convention of<br />
the Northern States Co-operative<br />
League brought together a group of<br />
co-operative experts who had a<br />
wealth of ideas on how to promote<br />
the Movement, and, what is more,<br />
have the capacity for successfully<br />
carrying them out. Many construc<br />
tive proposals were adopted in the<br />
Convention, which was held Octo<br />
ber 22nd and 23rd at Minneapolis,<br />
Minn.<br />
The sessions were presided over<br />
by John Scholtes, President of the<br />
Northern States Co-operative League,<br />
which is a district federation of<br />
co-operatives in Wisconsin and Min<br />
nesota. There were 27 regular dele<br />
gates and 14 fraternal delegates<br />
present. Dr. J. P. Warbasse at<br />
tended the Convention on behalf of<br />
The Co-operative League of the U.<br />
S. A.<br />
One of the most significant things<br />
accomplished by the Convention was<br />
the adoption of a plan for conduct<br />
ing a co-operative school for train<br />
ing co-operative managers, book<br />
keepers, etc. Secretary Alanne pre<br />
sented a general plan .for the estab<br />
lishment of such a school, which<br />
after a thorough discussion was<br />
adopted.<br />
A plan was submitted for conduct<br />
ing a five-week day school to be held<br />
in Minneapolis in the early part of<br />
1923. The school will be financed<br />
by the Northern States League out<br />
of dues from constituent societies<br />
and from tuition fees, students be<br />
ing charged $20 for their courses.<br />
Anyone ambitious to educate him<br />
self so as to more efficiently serve<br />
the Co-operative or the Labor Move<br />
ment and who has the recommen<br />
dation of a bona fide co-operative<br />
or labor organization, is eligible for<br />
admission to the school.<br />
The advisability of setting aside<br />
a co-operative campaign and educa<br />
tional week, during which new sub<br />
scriptions should be solicited for the<br />
publication of The Co-operative<br />
League, membership drives organ<br />
ized, etc., was suggested by presi<br />
dent Scholtes. The convention<br />
adopted this plan for a co-operative<br />
week, and instructed the Executive<br />
Board to put it into effect.<br />
S. Alanne presented the question<br />
of publishing a co-operative year<br />
book in conjunction with other Dis<br />
trict Leagues. After considerable<br />
discussion the Executive Board was<br />
given full powers to act, and was in<br />
structed to take the matter up at the<br />
national congress of The Co-opera<br />
tive League in Chicago.<br />
The necessity of regulating the<br />
relations of the District Leagues to<br />
the national league was suggested<br />
by Secretary Alanne, and a commit<br />
tee was appointed to submit recom<br />
mendations on this subject.<br />
H. V. Nurmi read a paper on a<br />
uniform accounting system for co<br />
operative stores. The plan present<br />
ed by Mr. Nurmi was endorsed, and<br />
it was decided to present the plan<br />
to the national congress.<br />
Eskel Ronn of the Co-operative<br />
Central Exchange discussed the sub<br />
ject of co-operative banking, and<br />
particularly the Workers' Mutual<br />
Savings Bank of Superior, Wis. The<br />
convention went on record as fav<br />
oring co-operative banking and urg<br />
ing Co-operators to patronize exist<br />
ing co-operative banks or credit<br />
institutions. The convention con<br />
sidered the matter of co-operative<br />
jobbing and wholesaling, and urged<br />
co-operatives to support the Co-op<br />
erative Central Exchange of Supe<br />
rior, Wis. The establishment of an<br />
Auditing Department was discussed<br />
and a committee was appointed to<br />
develop a plan.<br />
Delegate Nordby, representing<br />
the Franklin Creamery, spoke on the<br />
growing importance of consumers'<br />
co-operative creameries and an<br />
nounced that his organization now<br />
has a committee to assist in the or<br />
ganization of new co-operative<br />
creameries. The convention voted<br />
to accept the services of the cream<br />
ery committee.<br />
Steps were taken to protect co-<br />
operatives against private concerns<br />
discriminating against them. Com<br />
mittees were appointed on Legisla<br />
tion, Housing, and Coal Distribution.<br />
The report of the committee on<br />
constitution was adopted. The fol<br />
lowing were elected directors of the<br />
Northern States League: F. Burant,<br />
S. Alanne, H. V. Nurmi, J. Scholtes,<br />
P. F. DeMore, Mrs. Ed. Solem, and<br />
Maynard Peterson; while 0. A.<br />
Weeklund, F. Bergreen, P. Kokko-<br />
nen, and K. A. Nurmi were elected<br />
alternate directors. It was decided<br />
to meet at Superior, Wis., at the<br />
next convention.<br />
<strong>CO</strong>-OPERATOR ELECTED TO U. S.<br />
SENATE<br />
In the elections which took place<br />
November 7th, Co-operators, workers<br />
and farmers of Iowa swept into of<br />
fice by a huge vote Smith W. Brook-<br />
hart. Colonel Brookhart was elected<br />
United States Senator after a spirited<br />
campaign based on three main issues,<br />
viz: (1) the repeal of the iniquitous<br />
Esch-Cummins Transportation Law;<br />
(2) condemnation of the Federal Re<br />
serve Banking system, which was<br />
used to deflate the farmers; and (3)<br />
advocacy of laws encouraging co-op<br />
erative control of production, credit,<br />
marketing, and buying.<br />
According to an article in "The<br />
Nation" of November 1st, by Austin<br />
Haines, of Des Moines, Iowa, Senator-<br />
elect Brookhart "argues for the elim<br />
ination of unnecessary middlemen and<br />
the reduction of the cost of distribu<br />
tion by the adoption of the Rochdale<br />
co-operative system as practiced in<br />
England. In this way he foresees a<br />
Utopian condition in which agricul<br />
tural and industrial labor will each<br />
receive more for its products while<br />
paying less for the products of the<br />
other."<br />
In Pennsylvania a prominent co-<br />
operator, W. D. Hontz, of Lehighton,<br />
was elected to the State Assembly.<br />
Mr. Hontz is a member of the Lehigh<br />
ton Co-operative Association, and was<br />
active in combating the spurious co<br />
operatives which cost the workers of<br />
Pennsylvania hundreds of thousands<br />
of dollars.<br />
<strong>CO</strong>-<strong>OPERATION</strong> 215<br />
<strong>CO</strong>-OPERATORS TO REHABILI<br />
TATE FRANCE<br />
The Germans offered to rebuild the<br />
devastated part of France. They of<br />
fered to work out their indemnity by<br />
actually repairing the damages. But<br />
the French government refused, be<br />
cause the French contractors wanted<br />
to do the building in order to make<br />
their profit. A deadlock developed.<br />
Now we have word that a plan for<br />
the reconstruction work has been<br />
made. But it is not between the two<br />
governments. It is announced that<br />
arrangements have been made be<br />
tween Hugo Stinnes, the German in<br />
dustrial magnate, and a French co<br />
operative society, organized by the<br />
inhabitants in the devastated district,<br />
for the delivery of building materials.<br />
This society is composed of 130,000<br />
members. They hold claims for in<br />
demnity amounting to more than a<br />
billion dollars. Under what is called<br />
the Wiesbaden agreement the bills<br />
for contracts will be paid by the Ger<br />
man government, the government<br />
paying the German contractors in<br />
German curerncy.<br />
German business men and French<br />
Co-operators have been able to do<br />
what the governments and states<br />
men failed in.<br />
LOCKED-OUT RUSH RUN MINERS<br />
SEND MONEY<br />
The Rush Run Co-operative Society con<br />
sists of a small group of migratory coal-<br />
miners of different nationalities, with dif<br />
ferent political and religious status, but<br />
we are all for Co-operation in the economic<br />
field, with the banner 'All for each and<br />
each for all'. On October 25th, we held a<br />
special meeting to review the rich-vein of<br />
program to come before the third congress.<br />
While we are members of the League, we<br />
felt that we could not send a delegate at<br />
this time. The Rush Run coal-mines were<br />
shut September, 1921. Then the great<br />
coal strike came, and we were idle nearly<br />
a whole year. Therefore we were finan<br />
cially crippled.<br />
However, we pledge ourselves to do our<br />
part for the Co-operative Movement, and<br />
will support the League in the future.<br />
Meanwhile we are donating $5 to The Co<br />
operative League's fund.<br />
The Rush Run Society takes the liberty
216 <strong>CO</strong>-<strong>OPERATION</strong><br />
to present resolutions for adoption by the<br />
Congress.<br />
Ryland, Ohio.<br />
MIKE KOTORA, President.<br />
Rush Run Co-operative Society.<br />
(The resolutions presented by the Rush<br />
Run Society demanded the immediate re<br />
lease of political prisoners. The resolu<br />
tions were unanimously adopted by the<br />
Congress.)<br />
EN<strong>CO</strong>URAGEMENT FROM CAN<br />
ADA<br />
As a member of the Co-operative League,<br />
I am delighted with Co-operation, because<br />
of the enlightenment I get from its pages.<br />
It helps me to push forward the Movement.<br />
It took us three years to get the Calgary<br />
Co-operative Society going. I was a Co-<br />
operator in England before I came to this<br />
country, and according to my views of con-<br />
dithms on this American continent, Co-op<br />
eration is the only salvation for the masses<br />
to combat the privileged classes.<br />
North Lethbridge, Canada.<br />
A. J. INGRAM.<br />
WINNER OF <strong>CO</strong>NTEST<br />
Mr. S. Alanne, educational director of<br />
the Central Exchange, Superior, Wis., and<br />
secretary of the Northern States Co-opera<br />
tive League, won the subscription contest<br />
which closed a few months ago. He sent<br />
in 47 full subscriptions and 135 six-month<br />
subscriptions.<br />
NEW SUBSCRIPTION <strong>CO</strong>NTEST<br />
The Co-operative League is again offer<br />
ing a prize for the largest number of sub<br />
scriptions to "Co-operation" sent in by any<br />
one person between the first of November<br />
and the first of February, 1923. Any one<br />
can compete for the prize, which is a copy<br />
of any book on Co-operatio_n which the<br />
winner may choose from the list of publica<br />
tions of The League or its bibliography.<br />
THE SPIRIT OF CHRISTMAS<br />
The original significance and purpose of<br />
Christmas has become almost completely<br />
obscured by the commercial spirit of our<br />
age. For millions of people today, Christ<br />
mas is little more than a season of the<br />
year when all profit-seeking and exploiting<br />
merchants dress up their stores with red<br />
and green, and shrewd hucksters put on<br />
the dress of Santa Claus so as to wheedle<br />
away from children their precious pennies.<br />
The Co-operative Movement will ulti<br />
mately put the true spirit of Christmas into<br />
our everyday business life. It is already<br />
making a good start.<br />
Why don't you let some of your friends<br />
in on this Good News. Send them "Co<br />
operation" for one year.<br />
THE INDEX FOR <strong>1922</strong><br />
To prevent unnecessary expense, The<br />
League is having the INDEX for Volume<br />
<strong>VIII</strong> of "Co-operation" printed separately.<br />
Anyone desiring a copy of this index can<br />
get it by writing The League office.<br />
STATEMENT OF THE OWNERSHIP, MANAGEMENT,<br />
CIRCULATION, ETC.. REQUIRED BY THE<br />
ACT or <strong>CO</strong>NGRESS OF AUGUST 24,1912<br />
Of <strong>CO</strong>-<strong>OPERATION</strong>, published monthly at New York,<br />
N. Y.. for October 1. <strong>1922</strong>.<br />
State of New York,<br />
County of New York, ss.<br />
Before me, a notary public In and for the State<br />
and county aforesaid, personally appeared J. N.<br />
Perkins. who, having been duly fiworn according to<br />
law, deposes and says that she is the business man<br />
ager of the <strong>CO</strong>-OPERAION and that the following is.<br />
to the best of her knowledge and belief, a true<br />
statement of the ownership, management (and if a<br />
daily paper, the circulation), etc., of the aforesaid<br />
publication for the date shown in the above caption,<br />
required by the Act of August 24, 1912, embodied in<br />
section 443, Postal Laws and Regulations, printed<br />
on the reverse of this form, to wit:<br />
1. That the names and addresses of the publisher,<br />
editor, managing editor, and business managers are:<br />
Publisher, The Co-operative League of America,<br />
167 West 12th Street. New York City.<br />
Editor, Jamea P. Warbasse,<br />
167 West 12th Street, New York City.<br />
Managing Editor, Albert Sonnichsen,<br />
167 West 12th Street. New York City.<br />
Business Manager, J. N. Perkins,<br />
167 West 12th Street, New York City.<br />
2. That the owners are: (Give names and addresses<br />
of individual owners, or, if a corporation, give its<br />
name and the names and addresses of stockholders<br />
owning or holding 1 per cent or more of the total<br />
amount of stock.)<br />
The Co-operative League of America,<br />
167 West 12th Street, New Vork City<br />
James P. Warbasse, President,<br />
167 West 12th Street, New York City.<br />
A. P. Bower, Vice-President,<br />
167 West 12th Street. New York City<br />
Waldemar Niemela, Treasurer,<br />
167 West 12th Street, New York City<br />
(Organization members, 1,000.)<br />
3. That the known bondholders, mortgagees, and<br />
other security holders owning or holding 1 per cent<br />
or more of total amount of bonds, mortgages, or<br />
other securities are: (If there are none, fio state.)<br />
None.<br />
4. That the two paragraphs next above, giving the<br />
names of the owners, stockholders, and security hold<br />
ers, if any, contain not only the list of stockholders<br />
and security holders as they appear upon the books of<br />
the company but also, in cases where the stockholder<br />
or security holder appears upon the books of the<br />
company as trustee or in any other fiduciary relation,<br />
the name of the person or corporation for whom such<br />
trustee is acting, is given; also that the said two<br />
paragraphs contain statements embracing affiant's<br />
full knowledge and belief as to the circumstances and<br />
conditions under which stockholders and security<br />
holders who do not appear upon the books of the<br />
company as trustees, hold stock and securities in a<br />
capacity other than that of a bona fide owner; and<br />
this affiant has no reason to believe that any other<br />
person, association, or corporation has any interest<br />
direct or indirect in the said stock, bonds, or other<br />
securities than as so stated by him.<br />
5. That the average number of copies of each is<br />
sue of this publication sold or distributed, through<br />
the mails or otherwise, to paid subscribers during<br />
the six months preceding the date shown above is<br />
...... ....(This information is required from daily<br />
publications only.)<br />
J. N. PERKINS. Business Manager.<br />
Sworn to and subscribed before me this 22nd day of<br />
September. <strong>1922</strong>.<br />
(Seal) WALTER C. CAMPBELL.<br />
(My commission expires March 30th. 1924.)<br />
3.<br />
7.<br />
38.<br />
39.<br />
4.<br />
6.<br />
6.<br />
8.<br />
9.<br />
27.<br />
2.<br />
14.<br />
16.<br />
16.<br />
17.<br />
16.<br />
11.<br />
12.<br />
34.<br />
48.<br />
42.<br />
<strong>CO</strong>-<strong>OPERATION</strong><br />
PUBLICATIONS<br />
of THE <strong>CO</strong>-OPERATIVE LEAGUE<br />
HISTORICAL<br />
Story of Co-operation ...................................,.............$ .10<br />
British Co-operative Movement ........................................ .10<br />
Co'cperative Consumers' Movement in the United States............... .06<br />
Consumers' Co-operative Societies in IN. Y. State, (Published toy Con<br />
sumers' League) .................................................. .10<br />
TECHNICAL<br />
Per Copy Per 100<br />
$6.00<br />
6.00<br />
4.00<br />
How to Start and Run a Rochdale Co-operative Society.................. .10 4.00<br />
System of Store Records and Accounts................................ .50<br />
A Model Constitution and By-Laws for a Co-operative Society........... .06 2.60<br />
Co-operative Education. Duties of Educational Committee Denned...... .10<br />
How to Start a Co-operative Wholesale................................ .10<br />
Why Co-operative Stores Fail ......................................... .02 1.00<br />
Co-operative Store Management ...................................... .10<br />
How to Start and Run a Women's Guild................................ .06<br />
How to Organize a District Co-operative League ........................ .10<br />
MISCELLANEOUS<br />
Model Co-op State Law ............................................... .10<br />
Syllabus for Course 'of Lectures, with References and Bibliography.... 26<br />
Producers' Co-operative Industries ................................... .10<br />
Control of Industry by the People Through the Co-operative Movement... .10<br />
Credit Union and Co-operative Store................................... .06 1.76<br />
Co-operative Movement (Yiddish) .................................... .02 1.26<br />
Co-operative Housing ................................................. .10<br />
Co-op Homes for Europe's Homeless ................................. .10<br />
ONE-PAGE LEAFLETS<br />
(One cent each; 60 cents per 100; $2.60 per 600; $4 per 1,000)<br />
(1) Principles and Aims of The Co-operative League; (17) Do You Know why You Should Be a<br />
Co-operator; (20) Why Loyalty Is Necessary; (21) Cost and Crime ef Credit; (22) A Real<br />
Co-operator; (25) Resolutions Adopted by A. F. of L.; (26) Factory Workers Co-operate!;<br />
(28) Do You Know About Co-operation in Europe?; (40) Have You a Committee on Educa<br />
tion and Recreation?; (44) What Is the Co-operative Movement?; (45) Schools and<br />
Stores; (47) A Man's Right to a Job; (48) Tips to Co-operators; (49) Think It Over.<br />
MONTHLY PUBLICATIONS<br />
<strong>CO</strong>-OPEEATION—(In bundle lots, $7.60 per hundred). Subscription, per year......... .$1.00<br />
HOME <strong>CO</strong>-OPERATOR, 4 pages ................................................ $1 per 100<br />
INTERNATIONAL <strong>CO</strong>-OPERATIVE BULLETIN (Pub. by The I. C. A.).......per year, fl.50<br />
BOOKS<br />
The following books are recommended as containing the best discussions of the modern<br />
Co-operative Movement. They may be ordered through The League:<br />
Bubnoff, J. B.: The Co-operative Movement in Russia, 1917...........................$1.26<br />
Faber, Harald: Co-operation in Danish Agriculture, 1918.............................. 2.76<br />
Flanagan, J. A.: Wholesale Co-operation in Scotland, 1920............................ 2.00<br />
Gebhard, Hannes: Co-operation in Finland, 1916...................................... 2.00<br />
Gide, C.: Consumers' Co-operative Societies, 1921...................................... 2.60<br />
Gide, C.: Consumers' Co-operative Societies, American edition and 'notes, <strong>1922</strong>......... 3.00<br />
Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, $2.00; paper<br />
bound ........................................................................... .60<br />
Howe, Fred C.: Denmark, a Co-operative Commonwealth, 1921......................... 2.00<br />
Maxwell, Wm.: History of Co-operation in Scotland, 1910............................... 2.00<br />
Nicholson, Isa: Our Story ............................................................ .26<br />
Powell, G. Harold: Co-operation in Agriculture. Macmillan ........................... 1.60<br />
Redfern, Percy: The Story of the C. W. S............................................. 2.00<br />
Redfern, Percy: The Consumers' Place in Society, 1920............................... 1.00<br />
Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918...................... 1.60<br />
Smith-Gordon: Co-operation in Many Lands, 1920..................................... 1.50<br />
Sonnichsen, Albert: Consumere' Co-operation, 1919. Cloth bound, $1.76; paper bound... .76<br />
Stolinsky, A.: The Co-operative Movement. In Yiddish................................ 1.00<br />
Webb, B. and S.: The Consumers' Co-operative Movement, 1921........................ E.OO<br />
Webb, Catherine: Industrial Co-operation, 1917 ...................................... 1.60<br />
Woolf, Leonard: Co-operation and the Future of Industry ........................... 1.60<br />
Woolf, L.: Socialism and Co-operation ............................................... 1.60<br />
"The Co-operative Consumer" and "Co-operation," III (1917), VI (1920), VII (1921),<br />
VIH (<strong>1922</strong>) ..................................................................... L26<br />
Transactions of Second American Co-operative Congress, 1920........................... 1.00<br />
Transactions of Third American Co-operative Congress, <strong>1922</strong>..........................<br />
The People's Year Book, <strong>1922</strong>...................................................... .76<br />
(Ten cents postage should be added for books which cost more than $2.00, and five cents<br />
for the smaller books.)
THE <strong>CO</strong>-OPERATIVE LEAGUE<br />
(Member of The International Co-operative Alliance)<br />
167 West 12th Street, New -York *<br />
An educational organization for teaching the history, principles, methods and aims of the<br />
Co-operative Movement and for the promotion of Co-operation In the United States.<br />
Join The League and thus help promote the educational work of the Co-operative<br />
Movement. Individual Membership, $1.00 a year. Subscribe for <strong>CO</strong>-<strong>OPERATION</strong>,<br />
the Monthly Magazine of The League, and keep in touch with the Movement.<br />
FrirlnQPrl find S! for Subscription for <strong>CO</strong>-<strong>OPERATION</strong>, $1.00.<br />
juiciosea nna $........... ior Meinber8h;p £n The LEAGUE> $ 1 .00.<br />
Name.................................................................<br />
Address.<br />
Date....<br />
Co-operative Central Exchange<br />
Wholesale Grocers and Jobbers,<br />
Bakers<br />
We supply (roods to Co-operative Societies ONLY<br />
We are owned and controlled by Co-operative<br />
Societies.<br />
We are organized to enable Co-operative Societies<br />
to do collectively what tbey cannot do Indi<br />
vidually.<br />
Co-operative Central Exchange<br />
Offices, Warehouses and Plant:<br />
Winter Street and Ogden Ave.,<br />
SUPERIOR, WIS.<br />
Co-operators' Ltd. Mutual Fire Insurance Co.<br />
Is now writing Insurance In State of Wisconsin.<br />
The Canadian Co-operator<br />
Brantford, Ontario,<br />
Canada<br />
The organ ef the Canadian Co-opera<br />
tive Movement, owned by and con<br />
ducted under tbe auspices of The<br />
Co-operative Union at Canada.<br />
Published monthly; 7Sc per annum<br />
MOVING PICTURES<br />
and<br />
Stereopticon Lectures<br />
may be rented from<br />
THE <strong>CO</strong>-OPERATIVE LEAGUE<br />
167 West 12th St., New York City<br />
1. "Sotte Examples of English Co-operation."<br />
Moving pictures of factory processes (two<br />
reels) ................................35.00<br />
2. "Co-operatisn In the United States."<br />
With 63 stereoptloon views ........... .(3.00<br />
3. "The Co-operative Movement In Bnsssia."<br />
With 3D colored Stereopticon views....93.00<br />
Co-operation in Scotland<br />
In no part of the world la Co-operation further<br />
developed, or more successfully practised than In<br />
Scotland. If you wish to keep in touch, read<br />
"The Scottish Co-operator"<br />
(Published Weekly)<br />
Subscription: Tear 12 sh.; half-year, 6 oh.<br />
Address, 119 Paisley Road,<br />
Glasgow, Scotland<br />
THE PRODUCER<br />
Issued Monthly Price 3d.<br />
If you want to keep in tonch with<br />
business, organization, administra<br />
tive affairs, and problems of the<br />
British Co-operative Movement,<br />
read THE PRODUCER.<br />
Published by<br />
Co-operative Wholesale Society, Inc.<br />
1 Balloon Street, Manchester.<br />
Post free 4 sh. 6d. a year.<br />
The Trade and Technical Organ ef British<br />
Co-operation.<br />
THE HOME <strong>CO</strong>-OPERATOR<br />
A four-page magazine for<br />
use in co-operative societies.<br />
Issued monthly, in bundles, $1 per hundred.<br />
Published by<br />
The Co-operative League<br />
Publishing Office, Willimantic, Conn. Al<br />
bert Sonnichsen, Managing Editor.<br />
I