CO-OPERATION - VOLUME VIII - JANUARY - DECEMBER 1922

i CO-OPERATION
Formerly "XKe Co-operative Consumer
PUBLISHED MONTHLY
BY
Tne Co-operative League or U. S. A.
VOLUME VIII
January—December
1922
CO-OPERATIVE LEAGUE OF U. S. A.
167 West 12tK Street, New York City
1922

INDEX
A PAGE
Accessory Co-operation ...................................-...-•••••••••••••• 40
Adviser for Groton, N. Y., An................................................ 213
Alanne, S. ...........--•••••••-•••••••••••••-•••••••••••••••••••••••••••••• 8 5
American Labor Party's Endorsement........................................ 173
Arnold, Mary £......................-••••••••••••••••••••••••••••••••••••• 97
Artists' Co-operative, An. ................................................... 14
Ashland Society, The........................................................ 212
Associated Grange Warehouse, Seattle, Wash.. ................................ 168
Australian Co-operation.................................................. 142, 188
Austria, The Co-operative Movement in................................... 142, 169
B
Babson's Advice to Throttle Co-operation ..................................... 13
Backward British Step...................................................... 176
Bakeries, Conference of Massachusetts........................................ 107
Bakeries, Observations of Co-operative........................................ 209
Bakery at Paterson, N. J..................................................... 80
Baltimore Co-operative Society Helps Miners.................................. 105
Bank of Philadelphia, Labor. ................................................ 52
Banking .....................................................56, 92, 130, 159, 167
Basel, Switzerland ......................................................... 23
Be a Corporation ........................................................... 182
Beauty, The Need of......................................................... 147
Belgian Congress ........................................................... 179
Belgian Co-operators and War Invaders...................................... 77
Belgian Co-operators Purchase Fishing Boats. ................................ 16
Berlin Co-operative Theatre................................................. 176
Blazowska, Margaret ....................................................... 8
Bloomington, Illinois ....................................................... 87
Bolton, England ............................................................ 149
Book Review, Co-operative Anthology—Totomiantz............................. 18
Book Review, Consumers' Co-operative Movement—Webb. ...................... 36
Boston Co-operative Bank ................................................... 72
Boycott Co-operatives ....................................................... 16
British Co-operation in 1921.................................................. 160
British Co-operative Congress at Brighton..................................... 140
British Co-operative Societies ................................................ 113
British Co-operative Union. .................................................. 141
. British Honors to Co-operators............................................... 147
Brooton, Minnesota ........................................................ 175
Building Guild, The Fate of a. ............................................... 77
Buying Club for "Middle Class" Co-operators.................................. 25
Buyers' Strike, A........................................................... 20
C
Call to Co-operative Congress, Chicago, Illinois................................. 112
Canada, Encouragement From .............................................. 216
Canadian Co-operative Congress.............................................. 178
Canadian Co-operative Progress.............................................. 125
Can Co-operation Defeat Monopolies?......................................... 182
Carlsbad Congress .......................................................... 77
Catholics and the Co-operative Movement..................................... 44

Census Returns on Co-operation.............................................. 15
Central States Co-operative Society Feeds Miners............................ 1, 12
Cheapness Not the Aim..................................................... 93
Chicago Congress, The ...................................................... 199
China, Co-operation in....................................................... 105
Clarinda, Iowa............................................................. 174
Cleveland Co-operative Dairy ............................12, 30, 126, 138, 174, 194
Cleveland District League.................................................71, 139
Cleveland, Workingmen's Co-operative of...................................... 51
Closser, W. H. ............................................................. 7
Coal, A Story in ............................................................ 78
Coal, Cheap ................................................................ 161
Coal, How to Run........................................................... 145
Coal, Plan for.............................................................. 189
Coal Strike, The............................................................ 73
Coeur D'Alene, Idaho ....................................................... 175
Colleges Teach Co-operation ................................................. 15
Committees and Program for Third Co-operative Congress..................... 153
Conference of Co-operative Managers in Minnesota............................. 103
Congresses..........................77, 112, 140, 153, 178, 179, 199, 202, 205, 213
Convention of Northern States............................................52, 214
Convention of Ohio District League........................................... 157
Co-operation Dawns Again in Ireland......................................... S2
Co-operation's Duty to Trade Unionists....................................... 40
Co-operation in England and Wales........................................... 41
Co-operation, the One Hope in Europe......................................... 108
Co-operation Saves Strikes .................................................. 195
Co-operative Bakeries, Observations of........................................ 209
Co-operative Bakeries Feed Strikers.......................................... 85
Co-operative Coal Mine in England........................................... 148
Co-operative Congress, Program and Committees............................... 153
Co-operative League House Warming......................................... 100
"Co-operative" League of Pennsylvania (Non-Co-operative) ..................... 69
Co-operative Society of America.............................................. 69
Co-operatives and the Business Depression.................................... 86
Co-operatives and Russian Relief............................................. 88
Co-operatives Cut the Price of Bread.......................................... 16
Co-operatives Launch Fishing Flotilla......................................... 16
Co-operators Do Not Make Sales............................................. 191
Co-operators Elected to U. S. Senate.......................................... 215
Co-operators to Rehabilitate France ................................ .......... 215
^Correspondence. .......................17, 35, 54, 72, 90, 107, 126, 143, 162, 180, 196
Course on Co-operation...................................................... 121
Course on Co-operation in French College ..................................... 84
Credit Union Bank in Boston................................................. 15
Credit Unions. ...........................................................82, 89
Crestline, Ohio ............................................................. 35
Cutting Expenses .......................................................... 15
Czecho-Slovakia ........................................................123, 191
D
Dangers of the Big Society................................................... 131
Davies, M. L.—Inaugural Address............................................ 144
Dedication of The League House............................................. 100
Democratic Control and Strikes.............................................. 124
Denmark ..............................................................106, 124
INDEX
PAGE
Desbofough, E"ng., Shoe Factory.....................,.-...-.,.,,..,,.,,........ 94
Despite Mistakes. ............................................................ Ill
Difference Between Co-operation and "Business"............................... 109
Dillonvale, Ohio ....................-•.-•...'..••-••......-.............•.... 194
Donnelly, Thos. J., Pres. Ohio District League, Address of...................... 158
Dcn't Ask Too Much of the Store............................................. 3
Dunleavy, F. J. . ............. ^. ••••• ^-•••-••.••.-.... ^-...^................ 188
Duties of Co-operators............................ ^... ^...... f............ f.. 3
E
Economics of the "Manage X"............ ...................................... 15t
Education at Scranton, Pa................................................... 107
Education of British Co-operative Union...................................... 14l
Educational Work.................................................63, 65, 76, 99
Efficiency, Not Class........................................................ 128
Electricity in Switzerland and Russia, Co-operative............................ 53
Elimination of Waste in the Restaurant...................................... 97
Encouragement From Canada .............................................. 216
Engineers' Bank Pays Savings Returns....................................... 159
England and Wales, Co-operation in.......................................... 41
English Survey, An......................................................... 178
Erwin, Tenn. ............................................................... 194
European Impressions ..............................................5, 23, 41, 58
F
Fairhope, Ala. ............................................................. 126
Fake Co-operation .......................................................... 56
Fake Co-operatives in Los Angeles .......................................... 160
Farmers Buy Together ..................................................... 160
Farmers, The .............................................................. 21
Farmers, The Plight of the .................................................. 164
Farmers' Union Co-operative Insurance ...................................... 30
Farmers' Union Stores in Nebraska .......................................... 35
Farmers' Union Teaches Labor .............................................. 92
Farmers' Union, The ....................................................... 175
Farmington, Illinois, Store Thrives........................................... 31
Fascist! Destroy Co-operatives ............................................... 191
Federal Reserve Bank ...................................................92, 130
Finland Keeps on the Move ................................................. 53
Fire Insurance at Wocdridge, N. Y. .......................................... 71
Fishing Flotilla Launched................................................... 16
Fogelson, B. ............................................................... 118
Food For Thought and Use ................................................. 75
France, Co-operators to Rehabilitate.......................................... 215
Franklin Co-operative Creamery, Minneapolis ........................... 14, 88, 173
French Co-operative Bank .................................................. 177
French "Co-operative Day", A ............................................... 34
French Distrust Government ................................................ 176
French Miners' Plan for Coal ............................................... 189
French Wedding Gift ...................................................... 161
Freundlich, Emmy ......................................................... 169
Fun in the Co-operative Movement ........................................... 183
G
Gabardo, G., "A True Story of French Life" .................................. 151
Genoa, Straight From ...................................................... 129

INDEX
PAGE
German Consumers Take Over Government Works ............................. 175
German Co-operative Congress .............................................. 178
German Pish Industry ........................••••••••••........••••..-•••• 193
German Share Capital ...................................................... 191
Germany, Co-operation in ................................................... 5
Get-Together Club Lectures ................................................. 87
Gide, Chas., "Consumers' Co-operative Societies" ............................. 178
Glasgow, Scotland .......................................................... 58
Glasgow Co-operative Bakers Reduce Bread ................................... 16
Goedhart, G. J. D. C., Letter from ............................................ 198
Government Loans to Co-operatives ......................................... 37
Groton, N. Y., An Adviser for ............................................... 213
H
Hamburg Co-operative Union School for State Officials ......................... 4
Health Protection in Madrid ................................................ 161
Henryetta, Oklahoma, Co-operative Society ................................... 18
Hoan, Daniel W., Mayor of Milwaukee ........................................ 114
Honors Thrust Upon Us .................•••••••••••••••••••••••••••••••••••• 147
Hospital, Co-operative, in Hungary .......................................... 34
Hospitals in Spain ......................................................... 161
Housing in Europe ......................................................... 29
Housing in Milwaukee ...................................................... 116
Housing Policy in Russia ................................................... 16
How Co-operation Can Win ................................................. 55
How to Know the Wild Co-ops ............................................... 2
Hucknall, England, Interests the Children ..................................... 72
Hungarian Doctors Co-operate ............................................... 33
I
Incorporate, Co-operative Societies Should .................................... 93
Incorporation of The Co-operative League .................................... 62
Insurance, Co-operative, in New York......................................... 118
Insurance in Great Britain .................................................. 89
Insurance, Life ............................................................ 200
Insurance of Farmers' Union ............................................... 30
Intercollegiate Co-operative Society .......................................... 60
International Alliance Central Committee .................................... 105
International Co-operative Alliance Report on Russia .......................... 125
International Co-operative Summer School .................................... 124
International Congress, The Next ........................................... 213
Ireland, Co-operation in .................................................... 32
Ireland, The Future of ...................................................... 89
Italian Co-operatives ....................................................... 54
Italian Government Aids Co-operation ....................................... 33
It Pays to Stick ............................................................ 26
J
Japan, Co-operative Movement in ............................................ 190
Jewish Societies Affiliate with League ........................................ 137
Jewish Societies, Conference of .............................................. 64
Job Cursed the Day He Was Born ........................................... 166
K
Kalamazoo, Michigan, Progressing ........................................... 126
Kansas Strikers Fed by C. S. C. S. .......................................... 12
INDEX
PAGE
Kaufmaun, Heinrich ................ ....................................... 142
Keen, George, Letter from ........... ....................................... 196
King, Dr. Wm. and the "Co-operator"- -Book Review .......................... 144
Kittering, England .................. .....................................77, 94
Labor Council of Nashville, Tennessee, Endorses League ........................ 172
Labor Federations Endorse Co-operation ..................................... 102
Labor Leader Visits Italian Co-operatives ..................................... 54
Laundry at Little Rock a Success ............................................. 17
Laundry, The Co-operative, of Lynn .......................................... 134
Laundry, The Greenwich Village............................................. 104
Law, Model ................................................................ 29
League Helps Co-operative Cigar-makers ..................................... 195
League House, The ........................................................ 62
League Needs for 1922 ...................................................... 10
Lehighton, Pennsylvania, Co-operative Association............................. 78
Let's Work Together ........................................................ 207
Lewiston Association Doubles Business ....................................... 139
Life Insurance Saves Life ................................................... 200
Light Ahead .............................................................. 201
Llano Colony, The ................................................. 128, 132, 196
Loans to Co-operatives ...................................................... 37
Locked Out Rush Run Miners Send Money .................................... 215
London Co-operatives ....................................................... 41
Long, Cedric ....................................................25, 78, 150, 209
M
McGowan, R. A. ........................................................... 44
Maintenance of Way Brotherhood .......................................... 84, 105
Making the Pictures ........................................................ 76
Manager, The Honest ....................................................... Ill
Marquette University Chapter, I. C. S. ...................................... 60
Maynard, A Town in New England .......................................... 133
Medical Co-operation ..................................................... 34, 161
Milk and Health, Co-operative ............................................... 122
Milk Distribution ....................................................... 160, 194
Milk Strikers Organize a Co-operative Creamery ............................... 12
Milwaukee, The Co-operative Movement in .................................... 114
Minneapolis Labor Studies Co-operation ..................................... 14
Mistakes of Corona, L. I. ................................................... 121
Model Co-operative Law ..................................................29, 100
Model Educational Letter ...............................................'....' 65
Monopolies, Can Co-operation Defeat ........................................ 182
Mount Olive Co-operative Society ..........................................86, 160
Moving Picture Theatre, Co-operative ...................................... .' 30
N
Nash, Marion L. ............................. 99
National Co-operative Association .......................................... 68
Nebraska Co-operative Stores ............................. ... "' 35
Nebraska, Farmers' Union of ..........'.'.'.'.'.'.'.'.'.".'.""""""""""""" 50
Nebraska, Report from ........................ 1.."".'.'.".'.".".".". ^ " ^ "'"' 205
Nebraska Survey .................. . .......................
News and Comment ...............'.'.'.'.'.'.'.'.'.'.".".".'.'.".'12,' 30,' 49,'66,' 85,' 157,' 171, 194

INDEX
FAGU
New Year Greetings ... .,..-,..• * .

INDEX
PAGE
Theatre Collapses, A ....................................................... 39
Theatre, Co-operative Moving Picture ................................. ...... 30
Theatre, Berlin Co-operative ................................................. 176
Third Co-operative Congress, Chicago ........................... 109, 136, 171, 202
Thompson, Dorothy ........................................................ 108
Three Reasons ............................................................. 14?.
Throttling Co-operation .................................................... 13
Totomiantz, Prof. V., "Co-operative Anthology" .............................. 18
Trade Unionists, Co-operation's Duty to .................................... 40
Tade Unions Burn Money .................................................. 128
Training for the Service of the Workers ...................................... 1
Transactions of the Third Co-operative Congress ............................. 205
Trust Busting .............................................................. 181
Tucumcari, New Mexico, Society............................................. 77
U
Ukrainian Co-operation ................................................... 8, 142
Unemployed, The ........................................................... 135
United Brotherhood of Maintenance of Way Employees......................84, 105
U. S. Senate, Oo-operators Elected to ........................................ 215
Utica, N. Y. Co-operative Society ......................................... 17, 85
V
Vacations for Co-operators ................................................. 117
Vatican, At the ............................................................ 53
Villa Grove, A 50 Per Cent. Co-operative Town ............................... 13
Vital Issues .............................1, 19, 37, 55, 73, 91, 109, 127, 145, 163, 181
W
Wages Before Dividends ................................................... 199
Warbasse, J. P. ................. 1, 5, 19, 23, 37, 41, 55, 58, 73, 77, 91, 109, 113, 127,
145, 163. 182, 184, 199, 211
Warning Concerning the Co-operative League of America, of Pennsylvania (Non-
Co-operative) .......................................................... 69
Warning from Missouri .................................................... 31
Waukegan, Illinois Opens New Dairy ..................................... 86, 160
We Are Onto Genoa ........................................................ 74
Webb, S. and B., "Consumers' Co-operative Movement" ........................ 36
What We Owe the Poor ..................................................... 130
When Will the Revolution Come? ............................................ 91
Wilbrandt, Prof. Robert "Konsum-Genossenschaften" .......................... 144
Wisdom from Germany .................................................... 33
Womens' Guild ............................................................ 29
Woodcock, Leslie E. ......................................................... 207
Woolwich, England, Co-operative Society...................................26, 41
Word and Symbol Contest .................:............................. .11, 205
- Workers Need Training .................................................... 166
Workers, Training for the Service of the ..................................... 1
Workers Unite at Their Peril ............................................... 146
Y
Yardley, Washington, Co-operative Store...................................... 35
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
untary organization, produce and distribute for their own use the things they need
Published monthly by the Co-operative League of America, 2 West 13th Street, New York
City. J. P. .Warbasse, Editor. Price, $1.00 a year. Entered as second class matter, December
19, 1917, at the Post office at New York, N. Y., under the Act of March 3, 1879.
Vol. VIII, No. 1 JANUARY, 1922 10 Cents
TRAINING FOR THE SERVICE
OF THE WORKERS
VITAL ISSUES
The news comes that the Central
States Co-operative Society has sent
a train of ten carloads of food to
the striking miners in Kansas—
$64,000 worth of food—and that
altogether this makes $200,000
worth of food that it has sent to
them—forty carloads in all. Let us
look into this business a little. Some
body must be doing this. It is the
sort of thing that does not do itself
—this business that is done by the
workers for the workers.
There are people who say that all
that is needed is for the workers to
capture the government, take over
the industries, and then tell the su
perintendent of what was formerly
a capitalistic wholesale grocery con
cern to send food to the striking
miners. It sounds easy. It is the
soap-box method. But history shows
that people who have got their
training by administering business
for the profit-making interests do
not readily change their psychol
ogy. The Russian Soviet Republic
tried the political revolutionary
method, and executives of capital
istic training sabotaged the workers
all along the line. The workers
who study history are learning that
the best people to direct and or
ganize industry in the interest of
the workers are people who are
trained and experienced in doing
just that thing. And the Co-opera
tive Consumers' Movement is the
only organization of the workers
that is steadily growing and success
fully producing and distributing for
use, and that is training people from
the ranks of labor to serve the
workers in administering industries.
Aside from the men who had the
imagination and vision to conceive
of it, somebody had to do it. Who
directed this job for the, Kansas
miners? Who got the food togeth
er, saw that it was put on the right
cars and saw that the cars went to
the right place, to feed the families
of the miners? Not the superintend
ent of a capitalistic grocery concern.
I would not like to trust him with
the job. He and his concern might
do it, but they would have to have
their rakeoff; and their heart is not
in the undertaking. But the work
ers in the United States are raising
up men and giving them the train
ing to do this sort of thing. The
man who did this job is Bob
McKechan, manager of the Central
States Co-operative Wholesale of
East St. Louis, 111. Others of the
staff Ofiythat organization contrib
uted their services; they also are
working men trained to serve the

CO-OPERATION
workers. How did McKechan learn
how to do this sort of thing; it is
in the realm of big business? When
he was a coal miner he joined the
Gillespie Co-operative Society; then
he became manager of its little
store; and then he became manager
of the Central States Co-operative
Wholesale. He began at the bot
tom, and as he got experience he
moved on up. That is the kind of
training that fits a man to adminis
ter industries for the people. He
is a friend of the workers; he
knows the workers; and he has
practical training in administering
industry for them.
These miners of Kansas, unfor
tunately, are not organized as con
sumers. They had to turn to the
nearest group that was. The Cen
tral States Wholesale performed all
of the service free of charge and
sold goods to them at cost. They
gave them the advantage of saving
both the wholesalers' and retailers'
profits, and the advantage of get
ting pure food, and not having any
thing put over on them. And they
got the food they needed. This
sort of schooling, that McKechan
and his associates are getting, will
some day put the workers in con
trol of the situation. Thousands
and thousands of workers through
out the world are now getting this
training in the Co-operative Move
ment. The method is slow and
arduous. It cannot be gotten out
of books or lectures. It requires
pains, and work and patience. But
there is no other way. And with
out it victory at the polls or revolu
tion will fail. Victory without the
people behind it—people who can
control industries, who know how
to run industries—will cost more
than it is worth. The captured in
dustries cannot be held unless they
can deliver the goods to the people.
And if the people are sufficiently
trained to run their industries they
will find that they have captured
them without a victory at the polls
and without revolution.
HOW TO KNOW THE WILD
CO-OPS
There is a little book called
"How to Know the Wild Flowers."
It tells their names and peculiari
ties. Among other things it tells
how to distinguish mushrooms from
toadstools. It gives much useful in
formation. The people of the Unit
ed States need such a book to guide
them in the fields of Co-operation.
"How to Know the Wild Co-ops"
would be a good name for it. Every
trade union should have several
copies, and for initiation each mem
ber might learn it by heart.
There are simple tests which may
be applied to things that claim to be
co-operative that will determine
whether they are really flowers or
weeds; whether they are safe or
poisonous.
A smart fellow, called an "organ
izer," comes to town and talks about
his old college chums, the Rochdale
pioneers. He tells the working peo
ple that the workers are just as
smart today as those old fellows in
Rochdale were, and closes by ex
claiming: "Let us have a society
right here and now." He then pro
ceeds to tell how easy it is, and that
all the people need to do is to buy
a share in the great society that he
represents, and a store will be
opened for them the first of next
week that will put the private mer
chants out of business and return
dividends that will cut the high cost
of living all to pieces. He tells of
the wonders of the "Corobberating
Society of America," or the great
"National Solesale," or the "Spe
cific Leak," or the "Roachvale Sores
Incopperated." All that the simple
people have to do is to pay in their
money, patronize the store, and
every night the money from the
cash register will be sent to the
great and good and self-sacrificing
men at the central office, and there
you have a Co-operative Movement!
Here is where the key to "How
to Know the Wild Things" comes in.
Here are a few acid tests:
CO-OPERATION
(1) Ask to see the by-laws of the
wonderful society. Is it co-opera
tive? Has each member one vote
and no more? Does capital receive
not more than a fixed interest rate?
What is done with the surplus sav
ings? Do the members get them in
proportion to their patronage?
(2) Ask to see the "organizer's"
credentials from some labor body.
It is a good thing to know just what
labor leaders, if any, are behind the
scheme. Some of the fakers now in
jail carried good labor credentials.
(3) Under what state law is the
society incorporated? Is it incor
porated as a co-operative society?
Look out here for the "deed of
trust" game that puts the control of
the whole business in the hands of
three trustees, who can take out of
it all they want and the members
have no say.
(4) How are the officers elected,
or are they appointed? Who ap
points them?
(5) How much is the organizer
paid for selling stock or getting
members, and who pays him? Is
he paid a commission on sale of
stock?
(6) How much control of this
store and its funds will the members
have after it is started ?
(7) What are the members going
to get for the money they put in?
How much goods will be put on the
shelves ?
There are smart organizers who
actually give what are apparently
satisfactory answers to all of these
questions. On the Pacific coast one
of these carried a different set of
by-laws in his pocket from the by
laws of his organization. But these
fellows get fussed when the hard
questions are asked. Just keep
poking the questions at them and
see if they respond to the test of
genuine Co-operation. Some of
these things are not even toadstools.
Some are like the Congressman and
his seeds: his. arguments won't go
down and his seeds won't come up.
And one more point: Be sure
that you know the right answer
yourself when you ask the question.
These chaps have much skill in
making people think the wrong an
swer is the right answer.
DON'T ASK TOO MUCH OF THE
STORE
We have a letter from a society in
Missouri which says:
"Our store is doing well, but unable to
make a net earning sufficient to satisfy all
members. They feel that they should re
ceive not less than 10 per cent savings
returns every six months. The 'cash-and-
carry' stores owned by the A. & P. Co.,
and located all over town, seem to give us
the most trouble. Our members want their
store to compete with this chain of stores,
while we maintain a good delivery system
which is demanded by our stockholders."
This is hardly fair. Still, we have
heard of a society where some of
the members made purchases at the
A. & P. "cash-and-carry" store and
brought their packages around to
the co-operative store and asked
the manager to send them home in
the Co-op, delivery truck!
Any member of a co-operative
society who is going into a private
profit store to buy something that he
could get at his own store should
stop and ask himself a few ques
tions: Is it fair to the other mem
bers? Have not they the same right
to be disloyal to our store that I
have? If they should all do the
thing that I am thinking of doing
how long would we have a co-oper
ative store? Do I want the co
operative store to fail or succeed?
If it fails who will be responsible
and how much better off or worse
off will the people of this town be?
Am I playing the game fair? These
are some of the questions he should
ask himself.
But there are other questions that
a still bigger man will ask himself:
Suppose that I do save a few cents
in this A. & P. store; do I never

spend any money for a good cause?
I can afford to go to the movies once
in a while; I smoke, I buy a drink
occasionally, I buy a capitalist pa
per every day that lies to me about
my job and my store; I would be
better off to save that money and
spend it on something that is good,
on something that is building a bet
ter world, not only for me, but for
my children? Suppose it does cost
me a little more in my co-operative
store; if I stand by it and make it
increase, then it will save me money
in the end. We started this store of
ours in good faith; the fellows who
want to make profits out of us have
tried to destroy it; will I be one to
help them? How are the working
people ever going to learn to run
business for themselves unless we
stick by our own undertakings? If
this private profit store sells cheap
er than my store does, why don't I
help our board find out the reason
why, and then turn in and make our
store do as well? There is a reason
for everything; am I the sort of fel
low who just gives up and acknowl
edges that he is licked and can't
make a success of Co-operation, or
did I mean business when I joined
the co-operative society? Am I a
Co-operator or a piker?
But suppose that the co-operative
store does sell as cheap, or cheaper,
than the private store. Usually, the
co-operative store, in the long run,
is cheapest. Then, what is the mem
ber to do? The short weight, the
adulterations, the—I don't like to
mention all of the things that the
profit business has learned to put
over on the innocent consumer, but
if any Co-operator will ask himself
one more simple question, he will be
thinking about something that may
help him much: Where am I apt to
fare best, at the hands of the man
who is dealing with me for the one
and only purpose of making as
much money out of me as he can, or
CO-OPERATION CO-OPERATION
at my own hands, in my own store,
in which I have as much of a voice
as anybody, and which is run not to
make money out of me, but to serve
me?
Don't ask too much of the store;
but remember that the store has an
equal right to ask something of the
member.
THE STATE GOES TO THE CO
OPERATIVE SCHOOL
The Minister of the Interior, Dom-
inicus, before the Prussian Landtag
on the 14th of October, according to
"Le Co-operateur Suisse," of Novem
ber 2, 1921, said that in the se
lection and in the advancement of
high officials, it was necessary from
now on to pay particular attention
to the development of the modern
social spirit of the candidates. One
of the best means for encouraging
this spirit is, in his opinion, to send
these candidates to work for a pe
riod of several months in the service
of the great co-operatives, or in the
"maisons du peuple," in order to
find out a little what is the life of
the worker and the real point of
view of the worker, and also to
learn from them the methods of
economic administration.
In another declaration on the 18th
of October, this same Minister an
nounced that the Co-operative
Union of Hamburg is readily dis
posed to lend itself to this purpose.
Thus we see that the State is com
ing to school to the Co-operative
Movement. This is only the begin
ning of the educational work which
the world will yet witness. Today
in Europe the co-operative societies
are carrying on economic affairs
more efficiently than either the gov
ernments or capitalistic business.
The Co-operative Movement must
be the teacher and leader.
J. P. W.
L
EUROPEAN IMPRESSIONS
CO-OPERATION IN GERMANY
Every day for a month we had
visited co-operative societies by pre-
arrangement and introduction. We
had seen the great institutions in the
great centers. Now we determined
to go to some small city of which we
knew nothing. It might have a co
operative society or it might not; we
would take a chance. Niirnberg
would do—half way between Carls
bad and Basel. We did not know a
soul there nor the name of a hotel.
Just for variety's sake we hoped for
something small, struggling and in
significant, or new, or nothing at all—
something that might make us think
of home. We refrained from speak
ing the word until we sat down to
dinner in the hotel; then, with tim
orous misgivings, I asked the waiter
if there were a co-operative society
in Niirnberg. His face beamed with
interest. Of course! He was a mem
ber. How many members? He did
not know, but the membership must
be about 50,000. How many fami
lies in Niirnberg? About 100,000
(400,000 population). The telephone
book revealed nearly a page of num
bers given to the society. We went
to its central office next morning
unannounced and sent in our cards
to the directors. We were invited in
and saw spread on the table of the
president of the board a copy of a
co-operative journal containing my
Hamburg speech which they had the
goodness to say they had read with
interest. Then the same arrange
ments were made for our entertain
ment as we had experienced every
where in Germany. An automobile
was ordered for us, guides to take
us to the various plants and a pro
gram of co-operative sight-seing laid
out.
The enthusiastic waiter was wrong;
the Niirnberg society has only
40,000 members, but that means that
nearly one-half of the families in that
wonderfully clean and quaint old
By J. P. WARBASSE
(Concluded)
town are connected with the society.
And its growth is steady and sure.
The society has 30 stores, a large
banking business, a warehouse, a
bakery, and a number of dwellings
for the members. The bakery has 23
double ovens—that means 46 ovens.
The largest private bakery in Niirn
berg has 4 double ovens. The bakery
of this society is capable of baking all
of the bread that is consumed in the
city. Besides the model dwellings
that the society rents to its members,
there is a co-operative building soci
ety, which has created a garden city
in the suburbs which far surpasses
anything that the English garden
cities have attained. This society to
day, despite the high cost of building,
is going on with extensive house con
struction. In America the working
man pays one-fourth of his income
for the rent of a thing he calls home.
In Niirnberg the workingman Co-
operator pays one-fifteenth of his in
come for the rent and up-keep of a
whole house which his society owns—
and it is a house which he takes pride
in calling "home." It is well built—
brick, covered with gray stucco; a
red tiled roof; a garden of vegetables,
fruit trees and grapes in the rear;
rose trees in the front yard;,' and
climbing vines over the front of the
house. I take for example the house
of a railroad worker which I inspected
from cellar to attic; his salary is
15,000 marks a year, and he pays 595
marks yearly rental. This rental will
shortly be increased to 900 marks;
but even at that it is less than one-
fifteenth of his salary.
These brief glimpses of German
Co-operation may be regarded as typi
cal of what is going on all over Ger
man-speaking Europe. Co-operation
has been seized upon by the people
as the most practical means to win
democracy. The German Socialists
now realize that they have been mis
led by Lassalle and Marx into exag-

CO-OPERATION
gerating the possibilities of political
action. A Socialist leader and mem
ber of the Bavarian Parliament told
me that the teachings of Lassalle had
done great harm. As a result of a
newer understanding, the German
working people, while still retaining
an interest in political action, are giv
ing their real serious attention to Co
operation as offering the greatest
hope. They have learned by bitter
experience that political regimes may
come and go, but Co-operation is con
stant. In no other field of action do
they have such good prospects of
holding what they gain.
I went to Germany expecting to
find the Co-operators poor, hungry
and distressed. Germany is poor,
hungry and distressed; but these con
ditions do not apply to the Co-opera
tive Movement; the distress is of po
litical origin. The Co-operative Move
ment is independent and self-reliant
and comparatively prosperous. I have
studied Co-operation in ten of the
leading countries of the world; and
I can say that the German Movement
possesses qualities which will tend to
make it supreme. Germany leads the
world in science and technical effi
ciency. Co-operation is taking advan
tage of these qualities. It is em
ploying experts. This democratic or
ganization of the people is hiring sa
vants to do the things which the plain
people cannot do.
The plan is succeeding. Every
where is efficiency—the most marvel-
ous efficiency. In the administration
of financial matters are experts—the
sort of men who in our country be
come the masters of finance; in Ger
many the Co-operative Movement is
getting them. At the head of the
factories are directors who embody
the genius for organization and ad
ministration. Under them are tech
nical experts—engineers, chemists,
technicians. The chemical laboratory
is found in every great factory and
industry, not only making tests of
products but inventing new methods
and synthetic substances. Even in
the warehouses, the chemical labora
tory tests commodities bought and
sold. The value of this use of science
is beyond calculation.
Compared with other countries, the
German Movement is also character
ized by cleanliness and by lack of
waste. I think the two are related.
I have visited soap factories and pre
serve factories in several countries.
In some the floors were slippery with
soap or sticky with preserves. But
in the German factories the floors and
side walls were of tile, and always
spotlessly clean. Perfect machines
were doing the work better than the
unsteady human hand. Labor saving
devices are much employed. I recall
a great nine-story building with an
enormous output; and think of my
wonderment at the silence and the
small number of people—a beautiful
building, artistic in every detail, stair
ways of soft colored glazed porcelain,
hand-carved wood-work, paintings,
vases, stained glass windows,, and
scrupulous cleanliness to the utmost
corner. Here was order, quiet, and
a great silently moving current from
the intake of raw materials to the
out-go of finished product. Here
were silently moving passenger ele
vators without an attendant; bub
bling founts of water on each floor;
a spittoon at each stair landing,
through which fresh water constantly
flowed; a dining room on the top floor
for the employees, where one's order
was waiting for him already served
and paid for and warm st his place
the minute he walked in the room;
a heating system for winter, which
could use either coal, coke or crude
oil. All of the machinery of this
great plant was run by an engine.
I have been in many engine rooms;
they are greasy, dirty and hot, and
so are the engineers. This was the
latter part of July. The door opened
and I walked into the engine room
of this co-operative plant; a single
great square room of lofty height;
the floor was of tile; the side-walls
were glazed green art-tile. There was
no spot or stain. The room sug
gested an enormous Roman bath
chamber, but for the fact that in
the center stood two Diesel engines.
The only motion to be seen were the
two huge fly wheels, silently revolv
ing, creating and storing power. No
human being was in the room. These
engines, luxuriantly housed, were
quietly doing the work of thousands
of hands while no eye watched. I
did not see him, but it is possible
that the engineer sat reading in his
study, twenty yards away, inter
rupted only by the indicator which
informed him that visitors had en
tered the engine room.
Already the membership of the
German Co-operative Movement has
surpassed that of the British Move
ment. I am persuaded that we shall
find Germany taking the lead of the
world in this field unless the German
people are still further suppressed
and crushed by that greatest modern
atrocity which sprang from the loins
of Wilson, George and Clemenceau
and was spawned in the womb of
Versailles. There is something in the
German genius that makes for Co-
CO-OPERATION
opeiation. Along the French border
one sees the change. The French
towns are poor in Co-operation; the
German towns are rich. In Switzer
land, the German population have pro
duced a Co-operative Movement
which in many respects is the best
the world has to offer; in French and
Italian Switzerland the Movement
has about one-half the potency. In
dismembered Austria it is the Ger
man population that is taking the
lead.
This Movement in Germany had
attained to its highest development
just before the war. It was ready
for a great forward swing when the
war burst upon Europe and shattered
its hopes. But that impetus is still
operative. The hope is that the pol
itical governments will be satisfied
with the damage they have wrought
and will leave the people unmolested
to work out their problems for the
saving of humanity.
ROCHDALE SUCCESS AT SAULT STE. MARIE
The Soo Co-operative Mercantile
Association of Sault Ste. Marie,
Michigan, was organized in 1913,
with a capitalization of $3,000, a
very small beginning. But this as
sociation was founded by men who
saw in true Rochdale Co-operation
the very principles, which, if fol
lowed, would bring success; and al
though they met with many an ob
stacle during the first few years of
their existence, they clung tena
ciously to the above principles, with
the result that their record of
growth has shown what can be ac
complished.
During the first three years after
organizing, this association was
very unfortunate in securing two
different managers who were not
business men; but what was a more
serious drawback these managers
were not real Co-operators. This
resulted as might be expected. The
turning of the keys by the sheriff
By W. H. CLOSSER
was looked for daily. At this point
came the real constructive ability of
the board of directors, and they
took hold with the determination to
make the business go. A new young
manager was decided upon. He
was taken from the force of clerks;
and this young man certainly
worked. He not only worked, but
listened to advice of the board. To
make a long story short, there has
been true Co-operation ever since.
This association is very frank in
their praise of the help derived
from The Co-operative League of
America, through Dr. J. P. War-
basse, who visited them a year ago.
One of the members of this Soo As
sociation was elected last year at
the convention at Cincinnati, as a
member of the Board of Directors
of The League.
The following comparative state
ment shows the business done since
1918. The 1921 prices from good

8 CO-OPERATION
authority decreased about 30 per
cent from the prices obtained dur
ing the year 1920:
1918
January ........ $3,511.88
February ....... 3,347.35
March .......... 4,207.21
April ........... 3,188.06
May ............ 4,983.86
June ............ 5,777.50
July ............ 6,260.54
August .......... 5,450.59
September ....... 6,110.13
October ......... 6,581.65
November ....... 5,342.41
December ........ 5,236.45
1920
January ........ $15,625.40
February ..... 14,407.40
March .......... 19,288.38
April .......... 19,480.09
May ........... 22,930.36
June ........... 22,681.54
July ........... 24,445.68
August ......... 24,300.72
September ...... 22,416.87
October ........ 25,653.04
November ...... 22,888.41
December ...... 21,415.52
1919
$6,830.98
8,307.92
7,951.41
10,879.07
12,916.52
13,734.87
15,824.55
16,627.51
15,479.27
16,855.57
17,372.01
22,585.98
1921
$25,800.36
22,756.59
27,671.59
25,188.91
24,713.16
24,031.48
26,510.32
27,950.95
27,692.77
26,197.06
24,408.95
This association installed a very
modern electric bakery two years
ago, with a daily capacity of 1,500
loaves, besides all its pastry baking.
This plant is now far too small to
take care of the increasing demand,
and the association plans to build
an addition to its large building,
and will erect a modern oven amply
large for this increased business.
This association is not content sim
ply to maintain their present status,
but they plan in the near future to
completely stock the second floor of
their building with dry goods, boots
and shoes, having in view the final
establishment of a department store.
The Soo Association was one of
the first to lead out for the estab
lishment of a Co-operative League
in Upper Michigan at the time the
war broke out. But on account of
the following depression a district
League was not formed. They are,
however, buying in a wholesale way
many of the staple groceries, and
by so doing are cutting out the
profits of at least one middleman.
This Soo organization own their
own three-story stone building,
which they term the Main Store,
and are operating a bakery, two
meat markets, and a chain of four
additional grocery stores. We pre
dict a continued growth as long as
they stand by and maintain the true
Rochdale principles.
THE TERRORIZATION OF UKRAINIAN
CO-OPERATION
There is no people among whom
Co-operation has a more national
character than in Ukrainia. In the
Ukraine Co-operation and polit
ical action for national independ
ence are identical. During the time
of the Czar Ukrainian Co-operation
was regarded by the Russian ruling
class as a poorly disguised form of
the Ukrainian nationalization move
ment; and only the mischance of
war compelled the Russian govern
ment to permit the development of
initiative and freedom to the least
degree. However, up to the time of
the revolution, the Ukrainian Co
operation Movement had existed un
By MARGARET BLAZOWSKA
of Vienna
der the pressure of the government.
During the period of national re
construction (1917-20) the Ukrai
nian Co-operative movement was
brought to full development.
This movement is completely
unified with the life of the peo
ple, and has been the fountain-
source of the political power of
the Ukraine. Many people upon
the political stage have come out of
this movement. Therefore, it is
easy to explain that the Ukranian
Co-operative Movement is always
brought to the fore in political af
fairs and the intolerance within the
movement brought out. People who
were neutral in the nationalization
movement and who worked in the
purely co-operative field in the Co
operative Movement are pointed out
as suspicious.
Finally, the nationalization move
ment in Ukrainia has been given
the character of a purely political
party of "evil nature." The people
want to be free from Russia.
In view of the above facts, it was
but natural that the Ukrainian Co
operation Movement was oppressed
and the terrorism of the Bolsheviki
was instituted as a result of the oc
cupation of Ukrainia by the Bolshe
viki. Unfortunately, certain irre
sponsible Co-operators, who contin
uously change their political opin
ions as a chameleon its color, for
want of a Soviet organization in the
Ukrainia, use the political situation
to exterminate the "unpolitical peo
ple" who seem to be dangerous for
the above reasons.
During the month of July of the
past year, the Extraordinary Com
mission, in Odessa, arrested all active
managers of the Central Ukrainian
societies, officials, members who came
in from the country, and also the
janitors of the co-operative union.
The most dastardly crime was the
killing of the Ukrainian Co-
operators. The following were
murdered: Members of the board
of directors of the Consumers'
Union of Odessa and the members
of the board of directors of a
branch of the Dniprossojus in Odes
sa (engineer Boris Blazowsky), su
pervisory board member of the Con
sumers' Union in Odessa (Tit Klim-
iwitsch), directoress of the educa
tional department of the Dniprosso
jus in Odessa (Katerin Kamarets-
ka), and the secretary of the Odes
sa branch of the Ukrainian Agricul
tural Co-operative Union (John
Sirenko).
These innocent people had en
gaged in no political activities. They
had gone about their co-operative
business, and remained true Co-
operators at their posts to the last
CO-OPERATION
moment, in the conviction of the jus
tice of the government and their
own innocence. On the other hand,
others fled to the villages and
sought to hide themselves upon the
outbreak of the terror.
From the above it is evident what
difficulties co-operative workers
had to contend against. The sad
dest fact is that, on account of the
political conditions, no opportunity
is allowed to care for the poor fam
ilies of the murdered Co-operators.
It should be the first duty of Co-
operators to care for the poor,
bereft children of the murdered
comrades, but this is made difficult
or impossible.
THE SEASON'S GREETINGS!
With those who work for the cause
of Co-operation, who give of them
selves and of their substance, we join
heart and hand in high hopes and
renewed allegiance. May the New
Year bring us nearer to the realiza
tion of our fond ideals.
As we look across the year that
has passed we see the gains made,
the positions held, and the new foun
dations laid. Clouds have cleared
away. Steadily the structure in this
land of ours is building. It does not
rear itself; it is the work of human
hands. For those who have given
help, we are thankful. For those who
have obstructed, we have only the
hope that their feet may yet find the
path.
May we consecrate ourselves anew
to the Cause which brings upon its
wings peace, justice, and good-will
among men. May the strength of
those whose hands hold aloft the
light increase, and may their number
multiply.
Greetings, good wishes, and success
to all! We go forward together, to
ward the sunny slopes of the Land of
Cooperation.
The Executive Board
of
The Co-operative League.

10 CO-OPERATION
POLICIES—PRACTICAL AND PRESSING
FINANCING PROGRESS
Who believes strongly enough in
the civilizing power of the Co-oper
ative Movement to be willing to
help finance it? We are going to
have a great Movement in the
United States some day. But when?
That depends on the amount of
foundation work we can do now.
Maybe we shall have a great Move-
mentment here in twenty years
from now; maybe in ten; maybe in
five years. Those who are striving
for it know the obstacles that must
be overcome; and they know that
the educational and guiding work
of The League is necessary to give
the substantial results.
Already far-seeing people have
written in their wills bequests for
carrying on the work of The League.
But the work must be pushed for
ward today. We want the well-
wishers of the Co-operative Move
ment to live long; we want them
to see great results in their own life
time. Who will add immediate help
for this cause?
The Executive Board of The
League are carrying too great a bur
den. Each is doing the work of
two. Our offices in New York are
now located in four different places.
We need a building of our own,
where we can concentrate our ad
ministrative work. Who will give
The League a building? We have
to have it; why delay?
Ten district advisers are needed
to cover the United States. We
know just the work these advisers
should do; who will finance them?
A district adviser for New England,
one for the Pacific States, and one
for the eight other districts could
save to the Co-operative Movement
and to the people ten times their
cost. Who will give The League the
money to finance an adviser in one
district? Where are the ten peo
ple to finance the whole field?
The executive office work of The
League is not met by the dues paid
by the member societies. Still more
help is needed; where is it coming
from?
The Labor movement has sunk
millions of dollars in fake co-opera
tives and spurious ventures during
the past twelve months; enough to
finance for fifty years the most
splendid co-operative educational
program that our fondest dreams
could conceive of.
And The League has earnestly ad
vised the working people and
begged them not to put money into
these very enterprises; but the
workers in the United States are
not yet ready to lead the way. They
still must be shown and educated
by those who have the understand
ing. In the course of time the pow
er as well as the leadership will be
theirs; but these are the pioneer
days. The call today is for pio
neers.
Now we are laying the founda
tions for a better civilization. We
need help. Who will finance the
following needs:
(1) A building for the League,
so that Co-operation in the United
States may have a central home of its
own, and a fund to endow it, $100,000.
(2) A house for The League with
out endowment, $50,000.
(3) Ten district advisers, one for
each of the ten districts in the Unit
ed States, at $3,000 a year each,
$30,000.
(4) A school with 20 scholar
ships for training district advisers,
store managers, co-operative execu
tives and teachers in the Movement,
for a year, $20,000.
(5) Four Secretaries to do the
essential work of the central office
at $2,500 a year each, $10,000.
(6) A national traveling advis
er, to visit societies in every part of
the country and advise them in mat"
ters of education and administra
tion, and all expenses, $5,000.
(7) One much needed district
adviser at once in a district greatly
suffering for want of expert advice
and guidance, $2,500.
(8) The yearly deficit on the
printing of educational literature,
$1,000.
(9) A new typewriter, $100.
(10) Individual, non-voting mem
bership in the League, $1.
All of these things are going to
come. We are going to have a
great Co-operative Movement in the
United States. But when? Much
depends upon the response of those
who are willing to finance perma
nent progress.
TECHNICAL ADVICE TO THE
LEAGUE'S MEMBERS
The League has issued a bulletin
to its affiliated member societies for
the month of December on the In
come Tax, giving legal advice on the
items which are not subject to taxa
tion, etc.
Monthly bulletins are sent regu
larly to all affiliated societies. Dur
ing the past year these bulletins
have covered the following sub
jects :
Advertising, suggestions for co
operative posters.
Labor costs and labor efficiency.
Practical instructions to clerks.
Co-operative education and the
employees.
Bookkeeping advise and hints on
overhead.
Women's guilds.
How to give credit.
Advice on share capital.
A model report form for financial
statements.
Advice on marketing conditions
and buying.
Societies affiliated with The
League get these bulletins every
month free of charge.
CO-OPERATION 11
WORD AND SYMBOL FOR THE
LEAGUE
The contest for a word and sym
bol for The League, announced in
CO-OPERATION December, 1920,
and March, 1921, has closed with
over a hundred competitors making
contributions. Many of the sym
bols submitted are beautiful and ex
pressive works of art. Some show
real genius. The encouraging fact
is that they display a large grasp
of the significance of Co-operation.
Many represent fine allegorical con
ceptions and co-operative symbol
ism. Unfortunately, none of the
better pictures were simple enough
to make reproduction easy, nor
could they be grasped quickly and
readily carried by the eye. The
Executive Board has reluctantly de
cided not to accept any symbol that
has yet been presented. It further
more announces that no word that
has been submitted has been found
acceptable. Contestants desiring to
have their drawings returned may
communicate with The League.
HOW TO BOOST THE MEETINGS
The Tucumcari Co-operative Mer
cantile Company, of Tucumcari,
New Mexico, has a clever plan for
making all the members turn out for
the monthly business meeting.
Every man, woman and child as he
enters the meeting is given a num
bered ticket. At the close of the
meeting two of these tickets are
drawn. The person holding the first
number receives a fine 12-pound
ham, and the second lucky person
gets a 48-pound sack of flour. Need
less to say, the attendance is large
at such meetings.
INDEX TO CO-OPERATION
VOL. VII., 1921
Subscribers to CO-OPERATION
wishing the index to Vol. VII., 1921,
may have the same sent free of
charge by sending a two-cent stamp
to The Co-operative League, 2 West
13th St., New York, N. Y.

12 CO-OPERATION CO-OPERATION 13
MILK STRIKERS ORGANIZE A
CONSUMERS' CO-OPERA
TIVE CREAMERY IN
CLEVELAND
The dairy workers of Cleveland,
Ohio, who are on strike to resist the
attempt to cut their wages $6.50
per week, have followed the ex
ample of their fellow-workers in
Minneapolis, and have organized a
Consumers' Co-operative Creamery.
It will be remembered that the
Franklin Co-operative Creamery
Association, now doing a business
of more than $100,000 a month,
grew out of a lockout of the milk
drivers about two years ago. At
the invitation of the milk workers
of Cleveland, some active members
of the Minneapolis Co-operative
Creamery got busy in Cleveland,
showing the milk drivers how to or
ganize. A committee of the strikers
then went on to Minneapolis to
study the organization methods at
first hand.
The new Cleveland Creamery is
to be called The City Co-operative
Dairy Company. The society is in
corporating, with a capital stock of
$20,000, which is to be increased as
more capital is required. The ma
chinery for the plant is being or
dered, and a lease has been signed
for premises. Farmers in the vicin
ity are giving their heartiest sup
port to this new co-operative dairy,
which will enable them to get a fair
price for their products. In the
meantime, collectors are out for sub
scriptions to the stock of the co
operative, not only among the con
suming public, but among the dairy
workers as well. Shares sell for $10
each, and no member may own
more than $1,000 worth. No mem
ber has more than one vote, and
proxy voting is not allowed. A rea
sonable rate of interest will be paid
on shares, and it is planned to set
aside reserve and educational funds,
NEWS AND COMMENT
after which savings-returns will be
paid out of the balance.
The City Co-operative Dairy will
be a consumers' co-operative, and it
is designed to deal justly with the
milk producer, the workers and the
consumers. The producer is as
sured of a fair price, the worker of
living wages, and the consumer will
get pure products on the co-opera
tive basis. During eight months of
operation, the Franklin Co-opera
tive Creamery in Mineapolis made a
net profit of $31,689.00, which will
be distributed among the consum
ers. What is more, they have
forced down the price of milk 3
cents a quart, since they began
business, and have furnished milk
free from adulterants. What has
been done in Minneapolis can be
done in Cleveland and elsewhere.
When the strike broke out in
Cleveland, the city government at
tempted to take over one of the
large milk depots and distribute
milk to the consumers by means of
the city trucks. An injunction is
sued by a Judge did away with this
effort. Now the strikers and the
consumers are taking the situation
in hand themselves. What the city
government cannot do, because of
its limited powers, or because of the
prohibitions of the courts, the Co-
operators are doing today.
"CENTRAL STATES CO-OP"
FEEDS KANSAS STRIKERS
The miners in Kansas who have
been out on strike for many months
as a protest against their enslave
ment by the Kansas Industrial Court
Law, will have received $200,000
worth of foodstuffs from the Cen
tral States Co-operative Wholesale
Society by the time this magazine
is printed. Forty carloads of flour,
beans, bacon and other foodstuffs
have been shipped to the striking
miners, and more are on their way.
At the November, 1921, conven
tion of the United Mine Workers of
District 12, in Illinois, the miners
voted to assess themselves $1 per
month per member, for the purpose
of providing food free of charge for
the Kansas coal miners. There are
90,000 miners in Illinois contribut
ing to this fund. The money thus
collected is discharged through the
Central States Co-operative Whole
sale for food supplies. The Co-oper
ative does not make a penny's profit
on the transaction, the goods being
charged against the strikers' fund
at the wholesale cost. It should be
remembered that the Illinois miners
who are now supporting the Kansas
miners are the backbone of the Co
operative Movement in Illinois,
which is now acting as the commis
sary department of the labor move
ment.
The latest report to the Board of
Directors of the Central States Co
operative Wholesale Society is a
good one. Manager Robert McKe-
chan reported that in the three
months ending October 15, the
wholesale had sold $746,052 worth
of goods, or about $3,000,000 a
year. The overhead expenses of the
wholesale were surprisingly low—
1.1 per cent, and the overhead of
the retail "union" stores affiliated
with the society amounted to 10.3
per cent, which is a low overhead
for retail stores. The society is
$60,000 richer than it was three
months ago.
Educational work is going for
ward energetically. The Educa
tional Director, E. D. MacDougall,
is sending out study courses to local
societies, literature is being distrib
uted broadcast, and Mrs. Mabel W.
Cheel, of The League, is being
toured by the Educational Depart
ment of the "Central States," giving
illustrated lectures among the so
cieties.
A 50 PER CENT CO-OPERATIVE
TOWN
The "Villa Grove Co-operator,"
commenting on an article published
in last month's issue of CO-OPER
ATION, informs us that over 50 per
cent of the families of Villa Grove,
Illinois, are Co-operators. We re
print their figures, in the hope that
some other societies can make claim
to as good a record as the follow
ing:
In an article in the November number of
"Co-operation," a statement is made that
25 per cent of the people of Waukegan,
Illinois, are buying their groceries, meat
and milk from the co-operative store. Now,
we claim a much better record here, and
we think our figures will prove it. Qur 175
members bought $22,661 worth of goods in
the last quarter. We sold to non-members
$14,760.43 worth, equal to about 115
members, so we are supplying approxi
mately 290 families. That is over half the
total number of families in Villa Grove, so
that we now claim that in proportion to
the population of our city, we have more
members than any city in Illinois. We also
claim that our business with non-members
is greater to the total business than any
society in this state. If we are wrong we
want to be shown.
The Villa Grove Co-operative
Society has a clever means for pop
ularizing Co-operation in the homes.
Prizes of $5.00, $3.00 and $2.00 are
offered for the best three essays on
Consumers' Co-operation written by
high school pupils. The pupils
whose parents are officers in the
society are not eligible for the com
petition.
THROTTLING CO-OPERATION
In one of Roger Babson's finan
cial bulletins to his wealthy clients
some months ago, he said:
"We have the schools. We have
the pulpit. The employing class
owns the press. There is practically
no important newspaper in the
United States but is theirs."
This, of course, was not news to
most of us. But it has not been an
easy task to trace the control which
advertisers and financial interests
exercise over the press. The "Okla
homa Leader," a fearless organ of

II' ' •]
14 CO-OPERATION CO-OPERATION 15
the farmers and workers of Oklaho
ma, in its issue of December 10,
has an editorial which exposes a
specific instance of an attempt to
throttle its advocacy of Co-opera
tion, through pressure brought to
bear by advertising concerns repre
senting private commercial inter
ests. We reprint the editorial in
part:
Co-operation not only saves us money,
it not only adds to our well-being mate
rially, but it cultivates that happy relation
ship with each other which is so necessary
to the accomplishment of larger things.
Not only that, but it develops and demon
strates our social power, and proves indis
putably that the workers can do things
when they try.
Representatives of certain big advertis
ing concerns in Oklahoma City called on
the "Leader" recently. One of the com
mittee observed that the "Leader" was an
insistent advocate of co-operative buying
and selling by the farmers and wage-
earners, to which we pleaded guilty. "Why
should we—how can you expect us to—
advertise in the "Leader" when it is trying
to develop a plan and system which will
eventually put us out of business? Why
should we patronize your paper and give
you money which you are using to prepare
a club to knock us in the head with?"
The inference is plain. If the "Leader"
would quit talking co-operation, if it would
suspend or abandon its campaign of educa
tion in behalf of co-operation, if it would
quit telling the farmers and wage-earners
how to escape successfully the plunder
machine which is robbing them, then the
"Leader" could have a ten-page paper, of
which eight pages would be advertising,
and it would be a money-making institu
tion, independent of a question of circula
tion. In other words, a newspaper that
tells the truth, one that tells the farmers
and wage-earners what is best for them,
cannot live with the consent of the big
advertisers.
AN ARTISTS' CO-OPERATIVE
Two hundred and fifty of the
most prominent artists in New York
City have launched a co-operative
store, which will distribute artists'
materials on which dealers have
hitherto been making huge profits.
A staff of experts has been selected,
consisting of artists and chemists,
to examine all materials offered for
sale to artists and to pass on them as
to their technical qualities. This is
good news for the artists who have
paid enormous prices for their
paints, oils, canvases, modeling clay
and other materials, only to receive
inferior materials. Many an artist
has painted a picture with paints
supposed to be permanent, but
which was ruined as soon as it was
exposed to the light. A co-opera
tive society has been hit upon as
the remedy. And, as a matter of
fact, Co-operation is the only rem
edy.
The artists are subscribing the
capital with which to start their
store. The society has also engaged
an attorney to constantly look after
the rights of artists in their rela
tions with dealers. In addition to
this, the artists are to publish their
own magazine devoted to technical
phases of their work.
The organizers of this new de
parture in co-operative effort in
clude such well-known men as Rob
ert Henri, George Bellows, Hayley
Lever, William Auerbach Levy and
other leaders among the painters
and sculptors. Its first headquar
ters is the National Arts Club,
Grammercy Park.
Any class of consumers who set
their minds to it can do this same
thing.
MINNEAPOLIS LABOR STUDIES
CO-OPERATION
A course in Co-operation is being
given at the Workers' College at
Minneapolis. The Franklin Co
operative Creamery Association was
responsible for the inauguration of
this course. The idea was sug
gested by members of the Co-oper
ative to the teachers of the Work
ers' College, and what is more, the
Franklin Creamery is contributing
$400 to subsidize this course. Quan
tities of literature are being order
ed from The League for the stu
dents.
I
I
WORKERS' COLLEGES TEACH
CO-OPERATION
Co-operation is now being taught
in at least seven of the workers'
colleges run in conjunction with
the labor movement. Courses on
the history, philosophy and tech
nique of the Co-operative Move
ment are being given in the follow
ing colleges:
Denver Labor College.
Minneapolis Workers' College.
Seattle Workers' College.
Passaic Trade Union College.
Workers' University of New
York.
Washington (D. C.) Trade Union
College.
San Francisco Labor College.
In the near future, more colleges
will undertake such courses. A syl
labus has been prepared by The
League to aid teachers in carrying
on a Co-operative course. This out
line of Co-operation, together with
a bibliography prepared by The
League, is to be put at the disposal
of all the labor colleges in the coun
try, through the Workers' Educa
tion Bureau. It can also be ob
tained! from The Co-operative
League for study groups of any
kind.
CENSUS RETURNS ON CO
OPERATION
The U. S. Bureau of the Census has
issued figures on the extent of co-operative
marketing and purchasing by farmers. In
the 1920 census, figures were taken of the
business done by farmers' co-operatives dur
ing the preceding year. These returns show
that 329,449 farms secured their farm sup
plies, such as fertilizer, feed, twine, coal,
and even household necessities through
co-operative purchasing associations. Co
operative purchases by farmers amounted
to $84,615,669 in 1919. These purchases
were made by 5.1 per cent of the farmers
of this country.
The figures for co-operative marketing
during 1919 are even more impressive.
There were 511,383 farms selling their
produce through co-operative marketing
associations, or 7.9 per cent of all the farms
in this country. They sold $721,983,639
worth of farm produce in 1919, or an aver
age of $1,412 for each farm.
The Co-operative Consumers' Movement
among the farmers is strongest in Kansas,
Nebraska, Iowa, Minnesota and California.
ANOTHER BOSTON BANK
A new credit union has just opened
for business in Boston, Mass. Com
pare these features of the credit
union with the business methods of
your bank:
One may become a member, by pay
ing $5 for a share. This need not all
be paid at once. Shares can be paid
for, by weekly instalments of as low
as 20 cents.
Deposits as low as 25 cents are ac
cepted.
Loans are made to members only,
at a reasonable interest rate. Repay
ment may be made within one year,
in weekly or monthly instalments.
All officers and members of com
mittees of the credit union serve
without pay. They are sworn to the
faithful performance of their duties.
The credit union is under supervision
of the State Banking Commissioner.
The treasurer is under bond. Finan
cial statements are rendered every
month.
This credit union is called the
Union Workers' Credit Union, and is
located at Room 634, Little Building,
Boston. For the convenience of the
members, the office is open Tuesday
evenings from 7.30 to 10 P. M.
CUTTING EXPENSES
All the way from New Zealand
comes a report of the efficient serv
ice of the manager of a co-operative
society in that far-off country.
When this enterprising manager
took charge of his store in Decem
ber, 1918, the percentage of ex
penses on turnover amounted to
13.3 per cent. For the period end
ing June, 1919, the expenses were
11.18 per cent; six months later,
December, 1919,11.08 per cent; for
the year ending June, 1920, down
to 10.2 per cent. By the end of the
last half year expenses had been cut
to 9.5 per cent. This shows two

16
years' overhead cut down 4 per
cent, while costs of labor were going
up. And the percentages of surplus-
savings went up, while the ex
penses were going down.
NEW RUSSIAN SOVIET HOUSING
POLICY
A significant bit of news came in
a recent dispatch from Kussia.
Leon Kamenev, Chairman of the
Soviet Department of Moscow, is
quoted as follows:
"The new municipal policy brings with
it a radical change in the housing question.
The section for housing only has the right
of administration of the so-called fund of
available houses. This fund consists of
10 per cent of all housing accommodation
which is handed over to the newly-formed
housing co-operatives. These co-operatives
undertake the maintenance and repair of
the houses. There are today about 200
such co-operatives, which also undertake
the restoration of destroyed houses or
houses which require thorough repair and
renovation."
BOYCOTT CO-OPERATIVES
The other day the "Journal of
Patronal Associations" stated that,
although the manufacturers of cer
tain branches (especially textiles)
had lowered their prices 50 to 60
per cent, the retail merchants had
not lowered theirs more than 20
per cent. Also the Secretary of the
Swiss Industrial Associations for
mally accused the retail merchants
of having an understanding amongst
themselves to resist the lowering of
prices demanded by the manufac
turers.
We have, on our part, on many
occasions, cited cases where the Co-
operators were threatened with the
blacklist by these associations of
retail merchants, if they continued
to cut prices, which proves the truth
of the allegations of the "Schweiz.
Arbeitgeberzeitung." In further
proof of this the Co-operative Union
of LaChaux-de-Fonds has just added
a bit of news. Here is a letter which
the society has received from the
stationery trust:
Our members who deal in stationery in
La Chaux-de-Fonds complain that the Co
CO-OPEKATION
operative Union of your city sells mer
chandise below the prices (of others) and
carries on unfair competition.
We are therefore asking if you will con
tinue to refuse to sell at the same prices
charged by other stationers of your city.
If we cannot agree on this we shall be
obliged to boycott you in order to help our
members. We shall regret to be forced
by you to take this measure, but present
conditions cannot continue.
CO-OPERATIVES CUT THE PRICE
OF BREAD
The bakers of Glasgow, Scotland, made
an announcement a few weeks ago that
was welcomed by all the workers of that
city. The price of the standard four-pound
loaf was to be cut to a shilling. This ac
tion on the part of the bakers did not
spring solely from the generous feelings of
the bread profiteers. It was forced upon
them by the United Co-operative Bakery,
which announced that it would reduce the
price of its bread to one shilling.
Previous to this the price of Canadian
flour had been cut, so that the bakers could
afford to reduce materially the price of
bread. But they continued to retain for
themselves the benefit of the reduction in
the price of flour. Then the co-operative
bakery got busy and set the pace. It stated
publicly that it saw no reason why bread
should not be sold at a reduction of two
cents a loaf, and announced that it would
cut the price of its bread. The private
bakers grudgingly had to follow suit.
CO-OPERATIVES LAUNCH FISH
ING FLOTILLA
In the launching of two stalwart ships,
the other day, Edouard Anseele, the vet
eran leader of Co-operation in Belgium,
realized another of his dreams. Since 1886
he had been raising his voice against the
exploitation of the fishermen. Now the
co-operatives in Belgium have taken a step
which is destined to wipe out the unjust
system by which the fishermen were vic
timized.
Two steam trawlers were purchased from
the English Admiralty by the Belgian Co-
operators for $35,000 each. They had been
at sea only a year, and are substantial. The
ships bear the names of two prominent Co-
operators: Edmond van Beveren, the foun
der of Co-operation in Flanders, and Theo-
phile Massart, the father of a great co
operative bakery.
The inauguration of this new enterprise
was celebrated for several days at Ostend,
which is to be the harbor of the North Sea
co-operative fishing steamers. The capital
of this venture was subscribed by Vooruit,
the great consumers' society of Ghent, the
socialist fishermen of Ostend, trade union
organizations, and various co-operative so
cieties.
TUCUMCARI BUSY
"Have been very busy with our
Co-operative store here," writes N.
S. Bell, of Tucumcari, New Mexico.
"We got into financial difficulties
and had to change managers. We
have with us for manager now Mr.
A. W. Warinner, of Missouri. He is
pulling us out of the hole in good
shape. We sold about $3,000 worth
of new stock and are going uphill
again. A great number of members
are paying their grocery bills in ad
vance and have taken new interest
in the movement.
"There is nothing can stop the
bunch we have here now. They
have got the co-op, bug bad. Mr.
Warinner is a real live wire. He has
done more to put the idea over since
he has been here than we could in a
whole year. Now that the crisis
has passed I will have the time and
will gladly get out and see what I
can do towards getting subscriptions
for the magazine Co-OPEEATlON."
(We happen to know that Mr. Bell, who is
a locomotiye engineer, loaned the society
$1,000 to tide it over.)
COMING THEIR WAY
As President of the Utica Co-operative
Society I have just received an invitation
to address the New Century Club, a
woman's organization of considerable in
fluence in this city. I consider this a fine
opportunity to plead for their co-operation.
You no doubt agree with me that what
ever we can do to interest the women is of
inestimable value.
I may mention that we have secured the
support of the local branch of the Con
sumers' League, who last week became a
member of the Utica Co-operative Society
as such, and one of its most influential mem
bers joined us individually, with an initial
subscription of $250 in shares.
The Utica Trades' Assembly whose sup
port we have solicited and who had a
committee meet with us to investigate our
methods has likewise reported that we de
serve the trades union support.
OTTO L. ENDEES, President,
The Utica Co-operative Society,
Utica, N. Y.
CO-OPEKATION 17
CORRESPONDENCE
CONAWAY ALIVE
No doubt but that you have given up
hearing from us, thinking, perhaps, that
we had gone the way of the has-beens or
those who have tried and failed. But we
have cut out the words "fail," "can't,"
'if," "don't have time," "afraid," "too
busy," and such. All we know is "go."
Therefore, you will please find enclosed a
check for membership in The League and
for subscription to CO-OPEKATION; also
enough to cover cost of printed matter you
kindly mailed us. Please send us another
supply as soon as you get this letter, as
we want to keep the co-operative idea be
fore the people and let them understand
that we are alive.
THOMAS A. FEEGUSON,
Conaway Co-operative League, Toppenish,
Washington.
LITTLE ROCK LAUNDRY
"We are still alive and in the field,"
writes L. W. Lowry, manager of the Cit
izens' Co-operative Laundry Co., in Little
Bock Ark., "showing a small gain each week
in spite of hard times and tough competi
tion. The Co-operative flag is nailed to
the mast, and the thought of failure never
enters our heads. Yet—
"We have our careless members and our
knockers! 'Tis easy to dispose of the
knocker from the outside, we know what
to do with this fellow if he won't listen to
reason—but the guy that should be a
booster, he is a thorn in the flesh. He can
not be convinced, he will not listen to
reason, he won't even listen. At his union
meetings he will repeat some false story,
magnify it, and when told that it is not
true, he leaves and spreads it broadcast.
Against that kind of poison, the writer
does not know what to use-
"In spite of this, perhaps because of this,
we are getting ahead. While other laun
dries have laid off employees and cut wages,
we have kept all of ours busy, and made a
slight gain each week. A CO-OPEEATIVE
LAUNDEY CAN BE MADE A SUCCESS
—WE HAVE ONE HEEE."
EDUCATION AT
MAHONINGTOWN
We worked for eighteen months to get
started—had about $3,300 collected—but we
were afraid of the times, lots of articles
coming down. We thought we had better
wait until times were more settled. Every
member received his money back and aU
but two are ready to try it again, just as
soon as times are more satisfactory. We
think in about eight months to a year con
ditions will be more settled. We appreciate
the fact that The Co-operative League of
America has helped us in many ways to

18 CO-OPERATION CO-OPERATION 19
get started in the right way. We are not
going to give up, but still work for the good
we know there is in it for us. Our board
of directors is acting as an educational
committee.
Mahoningtown, Pa. C. M. HILL,
HENRYETTA HAS GOOD POLICE
The Henryetta District Co-operative So
ciety of Henryetta, Okla., was organized
during November, 1919. Twelve of us
met and put up $10 each to defray expense
of legal advice, charter fee, and incorpora
tion expense. We were accorded the priv
ilege of meeting in the police chief's office
during our organization period. We se
cured enough stockholders and money to
buy out an old stock of goods, though we
were sorry later for buying old goods. We
launched into' business on February 1,
1920. We had a hard struggle our first
year on account of incompetent managers.
The second year we have done fairly
well under another manager. We have
bought and paid for a business lot, and
hope to build in the near future. We have
built a corrugated iron garage on our lot
to house our two auto trucks, which saves
us $30 per month rent. We are paying on
a contract for a loan of $15,000 in a loan
company, which we expect to use in erect
ing our own store building.
At present we have 224 members. We
do about $10,000 business a month. We
handle groceries, dry goods, shoes, and a
small line of hardware. Goods are sold at
current retail prices. We are at present in
a very trying time, but we know we will
surmount all obstacles. GEORGE McKAY,
Treasurer Henryetta District Co-operative
Society, Henryetta, Okla.
(During the last quarter this society
paid a savings-return of 6 per cent to all
its members on their purchases).
HANNIBAL EDUCATES
We think the Associated Magazine to be
a great scheme to educate members and
can be used very effectively by mailing a
few copies to active trade unionists and
others inclined to be open on this subject.
Experience teaches us that nothing is so
essential to the success of a co-operative
store as is education. Send us 500 copies
at your earliest convenience.
A. S. BREWER,
Manager Hannibal Co-operative Society.
CALENDARS FOR 1922
A very attractive calendar has been
issued by the Co-operative Central Ex
change of Superior, Wisconsin, for the
year 1922. The calendar has a striking
reproduction of a four-colored oil painting
made especially for this purpose. The pic
ture teaches a Co-operative lesson, and
makes the calendar suitable for advertising
and educational purposes.
Last year the Co-operative Central Ex
change supplied 25,000 calendars to local
societies. It intends to do even better
this time. A substantial reduction has been
made in the price of the calendars, which
sell for 14 cents each in lots of 1000 or
more, 15 cents each in lots of 500 and less
than 1000, and 16 cents each in lots less
than 500. Many societies are ordering cal
endars for their members and customers.
BOOK REVIEW
Co-operative Anthology. Theoretical and
Practical Guide to Consumers, Producers
and Agricultural Credit Co-operatives, by
V. Th. Totomiantz, former professor of the
University of Moscow. Published 1921 by
J. Povolozky & Co., 13 Rue Bonaparte,
Paris, France.
Professor Totomiantz has rendered a val
uable service in compiling this anthology.
It is a collection of the opinions, philoso
phies and principles of various prominent
European Co-operators. Most of the ex
tracts are brief and give a fitting view of
the thoughts of the authors. We find col
lected here quotations from the pioneer
advocates of the Co-operative Movement,
such as Holyoake, Owen, Maxwell and H.
Wolff, of England; Schultze-Delitzch, F.
Studinger, H. Mueller and H. Kauffman,
of Germany; Charles Gide, Fourier, Pois-
son and Daudet-Bancel, of France; L. Luz-
zatti, Mazzini and L. Barbieri, of Italy; and
H. Pronier, of Switzerland, etc.
We in the United States will regret not
only that this valuable anthology is pub
lished only in the French language, but
that its author has not included in it ex
tracts from the American writers on the
Co-operative Move_ment. Nevertheless, we
may look forward in the future revised edi
tion for the inclusion of extracts from
those who are helping to guide the
Co-operative Movement in this country, as
well as for an English translation of the
stimulating hopes and ideals of our Euro
pean fellow Co-operators.
CO-OPERATION, VOL. VII, 1921
Bound volumes of this magazine, with
index, for 1921, may now be had by writing
to The League.
Our readers may be interested to know
that the volumes of the recent past years
are nearly exhausted. This publication is
an historic record which is now preserved
by libraries and by individuals as the most
authentic record of co-operative progress
in the United States.
46.
11.
12.
34.
43.
45.
PUBLICATIONS
OF THE
Co-operative League of America
HISTORICAL Per Copy Per 10Q
Story of Co-operation .................................................$ .10
British Co-operative Movement ........................................ .10
A Baker and What He Baked (Belgian Movement)...................... .05
Co-operative Consumers' Movement in the United States............... .05
16.00
6.00
4.00
TECHNICAL
How to Start and Run a Rochdale Co-operative Society.................. .10 4.00
System of Store Records and Accounts................................ .50
A Model Constitution and By-Laws for a Co-operative Society........... .05 2.60
Co-operative Education. Duties of Educational Committee Defined..... .10
How to Start a Co-operative Wholesale................................ .10
Why Co-operative Stores Fail .............. .......................... .02 1.00
MISCELLANEOUS
Producers' Co-operative Industries ................................... .10
Control of Industry by the People Through the Co-operative Movement... .10
Credit Union and Co-operative Store.................................. .05 1.76
Co-operative Movement (Yiddish) .................................... .02 1.25
Co-operative Housing ................................................. .10
Harmonizing Co-operative Producers and Consumers.................... .03
ONE-PAGE LEAFLETS
(One cent each; 60 cents per 100; $2.50 per 600; $4 per 1,000)
(1) Principles and Aims of the Co-operative League of America; (17) Do You Know Why You
Should Be a Co-operator; (20) Why Loyalty Is Necessary; (21) Cost and Crime of
Credit; (22) A Real Co-operator; (26) Resolutions Adopted by A. F. of L.; (26) Factory
Workers, Co-operate!; (28) Do You Know About Co-operation in Europe?; (40) Have
You a Committee on Education and Recreation?; (44) What Is the Co-operative
Movement ?
MONTHLY PUBLICATIONS
CO-OPERATION—(In bundle lots, $7.60 per hundred). Subscription, per year......... .$1.00
HOME CO-OPERATOR, 4 pages ................................................ $1 per 100
INTERNATIONAL CO-OPERATIVE BULLETIN (Pub. by The I. C. A.).......per year, $1.50
BOOKS
The following books are recommended as containing the best discussions of the modern
Co-operative Movement. They made be ordered through The League:
Bubnoff, J. B.: The Co-operative Movement in Russia, 1917.......................... .$1.26
Faber, Harald: Co-operation in Danish Agriculture, 1918.............................. 2.75
Flanagan, J. A.: Wholesale Co-operation in Scotland, 1920............................ 2.00
Gebhard, Hannes: Co-operation in Finland, 1916..................................... 2.00
Gide, C.: Consumers' Co-operative Societies, 1921...................................... 2.50
Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, $2.00; paper
bound ........................................................................... .60
History of Co-operation in the United States. Vol VI, John Hopkins University Studies,
1888 ...............................................................................4.00
Holyoake, George Jacob: The History of Co-operation, 1908............................ 2.00
Holyoake, George Jacob: The History of the Rochdale Pioneers........................ 2.00
Howe, Fred C.: Denmark, a Co-operative Commonwealth, 1921.......................... 2.60
Maxwell, Wm.: History of Co-operation in Scotland, 1910.............................. 2.00
Nicholson, Isa: Our Story ............................................................ .26
Powell, G. Harold: Co-operation in Agriculture. Macmillan ........................... 1.60
Redfern, Percy: The Story of the C. W. S............................................. 2.00
Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918....................... 2.60
Smith-Gordon: Co-operation in Many Lands, 1920...................................... 2.60
Sonnichsen, Albert: Consumers' Co-operation, 1919. Cloth bound, $1.76; paper bound... .76
Stolinsky, A.: The Co-operative Movement. In Yiddish................................ 1.00
Webb, B. and S.: The Consumers' Co-operative Movement, 1921....................... 2.00
Webb, Catherine: Industrial Co-operation, 1917 ...................................... 1.60
Woolf, Leonard: Co-operation and the Future of Industry............................. 2.00
Woolf, L.: Socialism and Co-operation................................................ 2.00
"The Co-operative Consumer" and "Co-operation," Vols. I (1914-16), II (1916), III (1917),
IV (1918), V (1919), VI (1920), VII (1921)........................................ 1.25
Transactions of Second American Co-operative Convention, 1920....................... 1.00
(Ten cents postage should be added for books which cost more than $2.00, and five cents
for the smaller books.)

THE CO-OPERATIVE LEAGUE OF AMERICA
(Member of The International Co-operative Allinace)
Executive Office: 2 West 13th Street, New York
An educational organization for teaching the history, principles, methods and aims of the
Co-operative Movement and for the promotion of Co-operation in the United States.
Join the League and thus help promote the education work of the Co-opera
tive Movement. Individual Membership, 1.00 a year.
Subscribe for CO-OPERATION
Formerly the ''Co-operative Consumer." The Monthly Magazine of The
Keep in touch with the Movement, $1.00 a year.
This Journal is Not Published for Profit
Ce-operative Central Exchange
Wholesale Grocers and Jobbers,
Bakers
We supply goods to Co-operative Societies ONLY
We are owned and controlled by Co-operative
Societies.
We are organized to enable Co-operative Societies
to do collectively what they cannot do indi
vidually.
Co-operative Central Exchange
Offices, Warehouses and Plant:
Winter Street and Ogden Ave.,
SUPERIOR, WIS.
Co-operators' Ltd. Mutual lire Insurance Co.
Is now writing insurance in State of Wisconsin.
The Canadian Co-operator
Brantford, Ontario,
Canada
The organ of the Canadian Co-opera
tive Movement* owned by and con
ducted under the auspices of The
Co-operative Union of Canada.
Published monthly; 75c per annum
MOVING PICTURES
and
Stereopticon Lectures
may foe rented from
CO-OPEBATTVE LEAGUE OF AMERICA
» West 13th St., New York City
1. "Some Examples of English Co-operation."
Moving pictures of factory processes (two
reels) ................................SB.OO
8. "Coperation in the United States."
With 63 stereopticon views ........... .$3.00
3.
'The Co-operative Momevent in Russia."
With 36 colored stereopticon views. .. .$3.00
Co-operation in Scotland
In no part of the world is Co-operaiion further
developed, or more successfully practised than in
Scotland. If you wish to keep in touch, read
"The Scottish Co-operator"
(Published Weekly)
Subscription: Year 12 sh.; half-year. 6 sh.
Address, 119 Paisely Road,
Glasgow, Scotland
THE PRODUCER
Issued Monthly Price 3d.
If you want to keep in touch with
business, organization, administra
tive affairs, and problems of the
British Co-operative Movement,
read THE PRODUCER.
Published by
Co-operative Wholesale Society, Inc.
1 Balloon Street, Manchester.
Post free 4 sh. 6d. a year.
The Trade and Technical Orean of British
Co-operation.
CASH REGISTER FOR SALE
The Consumers' Co-operative Company,
of Dayton, Ohio, has a cash register which
it wishes to sell. The register was bought
for $750 only one year ago, and is now for
sale for $500, which we are assured is a
bargain price. The register was especially
built for use by co-operative societies. It
prints a record of each transaction in dupli
cate, so that the store and the customers
may figure up the amount of purchases
upon which dividends are to be paid. Com
munications should be addressed to M. E.
Dooley, Treasurer, 21 South Terry Street.
Dayton, Ohio.
A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in vol
untary organization, produce and distribute for their own use the things they need
Published monthly by the Co-operative League of America, 2 West 13th Street, New York
City. J. P. Warbasse, Editor. Price, $1.00 a year. Entered as second class matter, December
19, 1917, at the Post office at New York, N. Y., under the Act of March 3, 1879.
Vol. VIII, No. 2 FEBRUARY, 1922 10 Cents
THE FARMERS
The time was when the United
States was an agricultural country.
Most of the farmers worked on their
own farms. The ambition of the fa
ther was to leave a farm to each of
his children. The culture, the sta
bility and the wealth of the country
were among the farmers. Up to sev
enty-five and fifty years ago, the
United States was breeding a race of
sturdy farming people. The farmers
lived well, did their own thinking and
fostered a fine spirit of friendliness
and neighborly sympathy. Each fam
ily produced in those days most of the
things they consumed. Their indus
try had a large social motive. The
agricultural period held the best days
in the history of the United States
from the standpoint of the making of
men.
Then came the steady encroach
ments of trade, manufacturing and
intensive industry for profits. A new
race of people became dominant—a
race of traders, speculators, and pro
ducers for profit. Gradually it came
about that money could be made
easier in exchanging and gambling in
the products of the land than in actu
ally producing things. Laws were
made to promote and protect gam
bling-. (It was called "trade" or
"business.") The products of the
farms presently became objects of in
VITAL ISSUES
terest and importance because of
their gambling possibilities. The
most influential citizens ceased to be
of the farmers and became the cham
bers of commerce, produce exchanges,
stock exchanges, merchants associa
tions, and boards of trade. Buying
at the lowest price and selling at the
highest price became the great na
tional occupation.
Steadily now, for the past thirty
years the number of farmers who
work on their own farm has dimin
ished. The number of mortgaged
farms has increased. The number of
farms owned by absentee landlords
and worked by tenant farmers has
multiplied. The average farm worker
has made a bare living from his in
dustry. Out of sheer economic pres
sure, the boys and girls have left the
farms and gone to the cities to take
jobs in factories and to engage in the
game of selling their labor at the
highest price and buying at the low
est price.
The year 1921 saw a great change
in the United States. For the first
time in its history, the town popula
tion became greater than the coun
try population. The majority of the
people are no longer occupied in agri
culture. The United States has ceased
to be an agricultural country.
How fares it with the farmer now?
In the Fall of 1921, a hearing be-

20 CO-OPERATION
fore the Agricultural Commission in
Washington brought out the fact that
the farmer in this country receives
but thirty cents out of every dollar
that the consumers pay for farm pro
ducts. In Denmark, the farmer re
ceives ninety cents of the consumers'
dollar.
The greatest economic power in the
United States today is represented in
those forces that take this seventy
cents tribute out of every consumers'
dollar and hand the farmer thirty
cents. This force is organized; it
controls the press and the schools,
and its representatives and agents
constitute the great majority in every
state legislature, in congress, in the
cabinet and in the courts. This is a
serious problem; but it is not only
a farmers problem; it is the problem
of every one of us. No civilization
can endure that subjugates the pro
ducers of necessary things to the will
and Gemination of traders in those
things.
To meet this situation, there is one
first step. The farmer must organ
ize. Industrial labor lifted itself out
of a state worse than slavery by or
ganizing. The farmer is headed, for
peonage; and nothing but organiza
tion can save him. His first duty is
to organize as a producer—as a
worker—to get adequate pay for his
labor. That means adequate prices
for what he produces. The consum
ers who are not farmers can not
justly raise a voice against this. The
farmer must organize for the same
reason that the industrial worker
must organize. In the present eco
nomic system, without organization,
slavery is their destiny. The man
who is opposed to the trade-union
principle for every worker, indus
trial or agricultural, is an enemy of
civilization to just that degree.
But the farmer, as well as the in
dustrial worker, cannot solve his
problem by merely organizing and se
curing better reward for his labor.
When he comes to spend the wages
he has gotten for his toil, he is still
at the mercy of the same forces that
control his selling power. Inasmuch
as he spends as much as he receives,
he is a consumer as much as he is a
producer. It is for this reason that
he must organize his spending power
as well as his selling power. These
two forms of organization are neces
sary and should go hand-in-hand.
The organizations that are doing
the most for the farmers in the
United States are those that are giv
ing attention to both ends of the
farmers' problem. Several are sin
cerely interested in having the farm
ers organize as consumers. Their
stores and purchasing organizations
are beacons of hope. They have es
tablished some of the best consumers'
societies in the Middle West. Their
great need is the intensive promotion
of education so that the farmers shall
understand the need and the correct
methods of organization.
The Co-operative League desires to
render every possible assistance in
this direction. There is every reason
why the organization of the people
as producers and as consumers should
go forward together. The hope of
the United States rests upon the pro
gress of the Co-operative ,Movement
and not upon the fictitious wealth, the
product of exploitation, which high
finance holds up as the test of our
greatness.
A BUYERS' STRIKE
The Attorney General of the United
States has suggested, as a remedy for
profiteering and high prices, that the
buyers should boycott all shops where
they think prices are unreasonably
high.
There is one thing that strikes the
thoughtful citizen in these trying
times: that is the utter poverty of
politicians in constructive ideas. The
whole country is beset with profiteer
ing, unemployment, suffering and
crime rampant. Boards of aldermen
and city councils fail utterly to touch
the problem. One American city has
been advertised with screaming head
lines as having a solution for its crime
problem; and what do we find is its
solution? It is building two new
criminal court buildings and has in
creased its criminal prosecuting staff!
If one would be especially im
pressed with the utter futility of our
political system, let him go to Wash
ington and see the whole outfit of
politicians, busy chieflly in avoiding
doing something fundamentally use
ful.
Dear reader, did you ever walk the
fields and turn over a big flat stone
and see the commotion among the
bugs underneath? Such a scurrying
and rushing hither and hither! Do
you realize what all the excitement
and fuss is about? The bugs are
afraid of the light. They live and
work in darkness. That is Washing
ton. The big flat stone is the present
benighted economic profit-system. A
new idea, born of suffering and dis
content, comes along and tips it up a
bit. A little light creeps in around
the edges, and there is danger that
the thing may upset. The bugs scur
ry as far from the light as possible,
loudly proclaiming to each other the
virtues of the stone and asserting that
the light cannot get in very far and
disturb things.
The solution offered by the Govern
ment will not upset the stone—never
fear!
It proposes a nation-wide buyers'
strike! If the workers proposed a
nation-wide strike of workers because
wages were too low, hell would be to
pay. But high prices is exactly the
same thing as low wages. The pre
cious Attorney General knows that
the buyers are not organized and
there is no such a thing as an unor
ganized strike. A strike is a nega
tive force any way. The Attorney
General advocates a consumers' strike
not only because of dearth of ideas,
but because of its impracticability.
The government's job is to suggest
something that will not worry the
supporters of the present system or
upset the structure under which they
work.
Suppose we had a government of
constructive statesmen. I admit the
impracticability of the supposition.
CO-OPERATION 21
But suppose we had. And suppose
the government taught the people
about organizing the consumers, not
to strike, but for constructive pur
poses. Suppose it used its machinery
of education, propaganda and pub
licity, not for negative purposes, but
to teach them how to organize co
operatively as consumers to supply
themselves with the things they
want. Suppose it fostered laws for
the protection and the promotion of
such organizations of the people. Sup
pose the Government should do what
The Co-operative Leage is attempting
to do. The United States would be
converted into a Utopia. The possi
bilities of bringing happines, self-re
liance and justice to the people are so
great as to be beyond human calcula
tion. Privilege and poverty would
disappear along with the train of
crime and sin that follows them.
That the Government will do such
a thing is unthinkable! If the people
want privilege and poverty abolished
they will have to do it for themselves.
Not a buyers' strike, but a buyers' co
operative organization for construc
tive purposes is what this country of
ours needs.
A SOCIALIST ERROR
Socialists in the United States are
teaching that the people need to vote
for Socialism and secure a majority
at election; and, lo! and behold! in the
twinkling of an eye, all will be
changed!
The New York Call, January 5,
1922, in an editorial said:
"H. G. Wells is right. It is not war that
is the most terrible thing, horrible as it is.
It is the stupidity of the people who, having
it within their power to change the present
hellish conditions between the rising and
setting of the sun, refuse to do it."
The editor who wrote this is the
best informed on economics of any
editor of any New York daily news
paper. He did not mean just what
the editorial reads. He meant that
the people have the power, in a day,
to take the first step toward a change.
But many people take the statement

22 CO-OPERATION CO-OPERATION 23
literally. The teaching among so
cialists is very prevalent that when
they have a majority at the polls the
change is as good as accomplished.
Soap box orators are fond of giving
this impression. As a matter of fact
it is far from the truth. If in any
industrial country, the socialists
should win a victory at the polls and
should attempt to change the present
hellish conditions between the rising
and setting sun, by a socialization of
industry, that country would be
thrown into a state of hellishness that
would be worse than the present con
ditions. If the captured government
should proceed to take over the indus
tries, chaos would be turned loose.
There would be unemployment, sup
pression of civil liberties, suppression
of freedom of speech, force without
stint, wholesale arrests, bloodshed,
poverty and crime—all multiplied be
yond what they are today. Before
the upset had lasted long the majority
of people would be praying for the
good old times back again, some arch
reactionary would be elected presi
dent, the "radicals" would be stood in
rows in front of a wall, and mowed
down with machine guns, and the
same old game would be on again.
If there is any particular class of
people in the United States today who
are not radical it is the people who
call themselves "real radicals"—the
so-called extreme left wingers. Radi
cals are at the root; these left wingers
are up in the branches—and a good
thunderstorm would shake them out
and bring them tumbling to the
ground.
What the people want is bread and
potatoes, and plenty of them. Any
reorganization of society—that does
not at once give them at least as much
as they have been having—poor as it
is—will not last very long. The prom
ise that "we are working put a better
state of society for our children" does
not satisfy hungry people. No change
from the present system will succeed
unless it is an economic change. Poli
tics can change little. The politics,
the government, is but the echo of
the voice of the owners of the prop
erty. Sudden revolutions, both poli
tical and economic, fail because the
present owners of the property are
opposed to sudden change. And they
are the forces which hold the surplus
wealth, the surplus food, the guns and
the powers of coersion. Finland
came up against this thing. It elected
103 socialists in a parliament of 200.
Then the trouble began. It is not a
question of what is right or what is
wrong; it is a question of facts, a
question of the action of forces which
cannot be changed overnight.
I do not say politics is futile. But
I do say it is a secondary field; and
any movement that hopes to change
the present "hellish system" by politi
cal action alone is futile. It is an idle
dream.
The only way to make the world a
better place to live in is to go to work
day by day and make it a better place
to live in. That means work; and
there are a lot of people who want it
done without work. They think vot
ing is easier.
If production and distribution for
profit is a source of evil, then the
remedy is to distribute and produce
things for use. If people do not want
to be dependent upon profit-making
capitalists for the necessities of life,
then the thing to do is to learn how
to supply themselves with the things
they want, independently of the cap
italists. There is no easy way to do
this. It can not be done by electing
some other fellow—to go to a capital
city—to instruct the thing called the
government—to do it. The people
must do it themselves. The capital
ists are now supplying us with most
of the things we use. They have
learned how to do it. But if we want
a change we have got to train our
selves to do things ourselves. If we
are not willing to remake the world
ourselves with our own hands, per
sistently and constructively, then
other non-creative and destructive
forces will remake it; and for the
worse.
J. P. W.
EUROPEAN IMPRESSIONS
There is a story told of a wealthy
traveller whose life was saved by
some Swiss peasants in the moun
tains and who, out of gratitude, sent
a sum of money to the Swiss Govern
ment to be given to the poor. In due
time he received a letter of thanks
from the "little republic of the moun
tains" ; but the letter returned to him
his money and informed him that the
government could not use it as there
were no poor in Switzerland. I like
this story because it shows the self-
respect and independence of the peo
ple. Of course there are poor people
in Switzerland — every country that
has the conspicuously rich has the
poor—but they are few; they will not
accept alms—and the Government
knows it.
As governments go, the Swiss have
a very decent one. Switzerland owns
no colonies, has no imperialistic pol
icy, supports no navy and accordingly
can maintain a pretty high type of
political regime—at least a vastly
higher type than any government can
which possesses these incumbrances.
The Swiss Government is one of the
few governments that is not un
friendly to Co-operation. Its attitude
is nothing worse than that of cheer
ful neutrality. The Swiss press dares
not attack Co-operation. The pulpit
utters no word against it. The
schools teach Co-operation. And the
universities have chairs devoted to its
propagation. All of this comes about
not because Co-operation is a good
thing, but because one half of the
population of Switzerland are in the
Co-operative Movement, and because
the state, the press, the pulpit and the
schools are not leaders of the public
but only reflections of the public will
and intelligence.
I spent two happy weeks in Basel.
Here is the central office of the Union
of Swiss Co-operative Consumers' So
cieties (Verband Schweiz. Konsum-
vereine—V. S. K.), Several of the
CO-OPERATION IN SWITZERLAND
By J. P. WARBASSE
factories of the wholesale are located
here. Among these, none is more
noteworthy than the shoe factory.
This splendid plant kept running dur
ing the war and has never laid off a
hand during the slack times that fol
lowed. When capitalistic shoe fac
tories in Switzerland were closed or
were working half time or had laid off
half of their employees, this factory
continued to produce shoes at its full
capacity. I said to the manager,
"What do the consumers' societies
say to this production of shoes beyond
their needs? You are making more
shoes than they can buy." He re
plied, "This is not a profit-making
business; it is a social enterprise. We
can afford to do so as long as the fi
nances of the whole society do not
suffer." The consumers who own this
factory are willing to produce shoes
and store them in their warehouses
in order that the employees shall not
be dismissed. Capitalistic business
is not prone to do this sort of thing.
One of the possessions of the Swiss
Union is the ownership of the major
ity of the stock of Bell & Company,
the beef trust of Switzerland. This
illustrates the co-operative method of
socialization. It is done neither by
confiscation nor by compulsory sale,
but by the simple and ordinary
method of business in the free and
open competitive world of economics.
The result is that the Co-operators of
Switzerland now control the meat
monopoly, and have the benefit of the
experience and administrative ability
which that great trust had developed.
This they are able to do and at the
same time have the benefit of 49 per
cent of capitalist capital in the busi
ness. So close is the connection that
the Co-operators have built one of
their own wholesale warehouses im
mediately opposite the packing house
premises.
The Swiss Union acquired the larg
est flour mill in the country by the

24 CO-OPERATION CO-OPERATION 25
same means as it acquired the meat
packing business. The millers had
been required to boycott the co-opera
tive bakeries because they sold bread
cheaper than the private bakeries.
The Co-operators solved the problem
by buying the big mill in Zurich.
The beautiful holiday house in the
Rigi Mountains is the Co-operators'
vacation and recreation resort.
Co-operative housing, insurance
and banking are also well advanced
in Switzerland. The educational
printing and the publications issued
by the Union are the best examples
of educational co-operative press work
in Europe. Their printing plant is a
model.
Switzeiiand has 374 co-operative
electric societies which produce elec
tricity for the members. Many of
these get their power from the moun
tain streams and use this falling wa
ter from the melting snow to light
their houses and run their sewing ma
chines.
Let us look at the local co-operative
society of Basel. This city has 135,-
000 population. The society (Der
Allgemeine Consumverein—A. C. V.)
has 41,000 members. Its yearly busi
ness is 60,000,000 francs. There are
more members than there are fam
ilies in the city. The society has a
bakery with 18 ovens, turning out
10,000 loaves of bread daily and many
other products. Sixteen wagons de
liver the bread to the stores. There
are 160 stores, one of which is the
largest retail department store in the
city. The creamery distributes 60,-
000 liters of milk daily. It supplies
more than half of the families in
Basel with milk and is one of the
largest and finest industrial buildings
in the city. Milk is received from
the farm lands of the society just out
side of the city and also from dairy
productive societies. This plant
handles butter and cheese and manu
factures fermented milk products.
With its laboratory, refrigerating ma
chinery and modern apparatus, it is
a standing confirmation of the prin
ciple that the people can carry on
their own business better than private
interests can carry it on for them.
The plant looks like a university
building.
The shoe repairing shop of the
Basel society employs thirty shoe
makers and repairs 1200 pairs of
shoes a week. This society has a
building department and at present
owns 300 dwellings. Independent of
the A. C. V. are several co-operative
building societies developing homes
for the people. The most important
of these is Freidorf, with 180 houses.
The money for this latter enterprise
was largely supplied by the Swiss
Union. The Freidorf society is now
erecting a central building which will
contain stores, an assembly hall, a
gymnasium, restaurant, school and
library.
The Basel society has also a large
savings banking department. Its
bottling department is the largest
wine business in the city. Its own
fire department is so efficient that
the reduction of fire insurance prem
iums nearly pays for its maintenance.
Among the other activities of this so
ciety are a coffee-roastery; petroleum,
coal and wood business; beer, mineral
water and soft drinks bottling; repair
shops; blacksmithing and painting.
This Basel society is the largest,
the most influential and the most
beneficent organization in the city.
Basel is a beautiful and enlightened
community; the co-operative society
is doing more than any other agency
to make it more beautiful and more
enlightened. I doubt if there are
any large societies in the world whose
members in proportion have a better
understanding of Co-operation than
is to be found in Basel.
One can traverse the length of
Switzerland in a few hours. In every
town is a good society. Let me say
a word about the Zurich society. It
is much like that of Basel. Its cen
tral building is the largest and finest
commercial building in the city. The
building occupies a city block. The
retail grocery store on the ground
floor is the most beautiful grocery
store I have ever seen. I am familiar
with the high-toned grocery stores in
New York and other American cities.
None of these compare with the coiperative
store in the little city of
•ich. The interior is of rich golden
xown glazed porcelain tile. Not only
the side walls of this material
but the columns and railings of the
staircase. Porcelain electric chande
liers, fountains and other ornaments
make this interior seem like a palace
hall. The meat and fish department,
with aquariums of living fish, pre
sents more the appearance of a na
tural history museum than a com
mercial business. The two sub-cel
lars with artificial refrigeration, are
packed with perishable foods direct
from the land. As one steps from the
elevator at the top floor, his vision,
through the window, is arrested by a
great snow-capped mountain which
comes down to the very edge of this
beautiful city and adds its charm to
an idyllic scene.
Switzerland is making a contribu
tion toward the solution of the social-
economic question which the Co-oper
ators of all the world may study with
profit. The Swiss Co-operators are
leading the people of that little re
public toward civilization. It was in
deed fitting that the Tenth Interna
tional Co-operative Congress was held
in that land of co-operative promise
and fulfillment for every delegate car
ried back to his own country inspira
tion and ideals which northern Switz
erland best could supply.
THE BUYING CLUB FOR "MIDDLE-CLASS"
CO-OPERATORS
How can a successful co-operative
society be organized among middle-
class residents of a city or town—men
and women in business or professional
life?
One answer is, "It can't be done.
Why try?" But that is dodging the
question.
These people are consumers. And
every week many of them are chal
lenging the office of The Co-operative
League to show them the way to or
ganize a consumers' society.
Here is how one group attempts it:
1. The leaders recognize the limi
tations of the majority of the people.
These people are not united by a class-
consciousness such as the organized
workers or farmers have. They have
no common interest. Most of them
are sheer bargain hunters and have
no inkling of the meaning of co-opera
tive solidarity.
2. Confessing these limitations, the
leaders have determined to unite such
people on a straight promise to get
them bargains.
3. Share capital necessary is $25
per member, payable in instalments;
interest on capital is limited. One
By CEDRIC LONG
member has one vote only. No proxy
voting permitted. The society handles
drygoods, stationery, furniture, gro
ceries in large quantities,—all the
common necessities of the home.
4. Goods are sold at cost plus 20
per cent; 10 per cent of this surplus
goes to expenses of operation; the
remaining 10 per cent is returned at
the first of every month in the form
of savings returns.
5. There is no store. A manager
and clerk are employed. They have
their headquarters in a large office
building, displaying a few samples
and wholesale catalogues. Members
place orders in advance and goods are
delivered to homes at wholesale cost
plus 20 per cent, plus delivery ex
pense.
The president of the society justi
fies this form of co-operative buy
ing organization on the following
grounds:
A. We don't want a store. If we attempt
to run a store, we are doing just what
private business does, and we can not com
pete. Why do what everybody else is doing
and lose money? We owe our members
something better.
B. To compete with commercial stores we
must offer our bargain-hunting members

26 CO-OPERATION
lower prices and a rebate. Therefore we
undercut the department store prices on
nearly everything, and in addition we guar
antee a monthly dividend of 10 per cent.
C. We not only save the overhead expense
of running a store, but we eliminate the
expenses of depreciation on a whole lot of
damageable goods. Our member who wants
a new phonograph or suit of clothes, goes
and overhauls the goods that are being
knocked around the department stores by a
thousand people, decides what he wants,
comes to us, and we get it for him in brand
new, perfect condition from the wholesaler.
Wanamaker, Gimbel, or Marshal Field is
our sample room where our people paw
over shop-worn material until they find the
goods that they want their own Co-opera
tive to buy for them.
D. We do not meet the requirements of
the hand-to-mouth purchaser who never
knows what he wants until he needs it.
And we don't want to. Let the chain stores
do it. We are teaching men and women
to plan their purchases a few days ahead
of their needs. And we are demonstrating
to them that it pays to look ahead.
E. As for Ideals and Principles.—Our
members are not yet Co-operators and we
don't try to fool ourselves into believing
that they are. But ultimately they are to
become a part of the Co-operative Com
[This communication is from a pioneer
British Co-operator, now, for many years,
a citizen of the United States. It should
be of interest to all Co-operators in this
young land of co-operative effort. Recently
delegates from the League visited the
Royal Arsenal Society, at Woolwich, Lon
don, England, which is described by Mr.
Rose, who was one of its originators and
its first secretary, in 1850. Today this so
ciety has 70,000 members, a capital of
$5,000,000, an annual turnover of $10,-
000,000. It has 134 branch stores, and
operates its own tea warehouse, its own
preserve factory, bakery, drygoods, house
furnishings, fish and green grocery depots,
and butcher shops; and employs 1,700 per
sons. All this has grown from the early
beginnings which Mr. Rose, who is now a
great grandfather, so picturesquely de
scribes.]
I will give the early experience of
the Royal Arsenal Co-op; but first of
all I will tell of the condition of Co
operation in that district, the factory
end of Woolwich. When I was an in
fant, a Co-op, was started by some
IT PAYS TO STICK
By WILLIAM ROSE
of Trenton, Michigan
monwealth of the future. How get them
ready for that time? We mus_t first ap
peal to their selfish individualistic inter
ests and get them to buy through the same
society. Gradually the monthly dividend
and the quarterly meeting and the visiting
committee will begin to have an effect on
them. They will realize that it is their
society, run by their collective effort, giving
them common advantages. They will begin
to see the difference between such an or
ganization and the ordinary profit-making
institution. They will look around for other
Co-operators. They will learn that they
have something in common with the work
ers co-operative societies.
Is this an ideal co-operative ? Is it
practical as a business proposition?
Is it contributing to the building of a
new social order founded on co-opera
tive principles, or is it only cheapen
ing the cost of living for a group of
middle-class men and women, and
thereby perpetuating the profit-mak
ing system?
Can our middle-class men and wo
men learn to become Co-operators?
And if so, with what form of organi
zation is it best for them to begin?
boiler makers. It ran for 30 years,
but never got out of a two story
house. It was run on the old style;
those that had the most stock had the
most to say for the management.
Then there was the Woolwich bread
society. My father before me helped
to start that on the same principle.
These two, to my own personal knowl
edge, wound up, paying in only a few
shillings on the pound. Then there
was another in the Plumstead dis
trict that started and only lasted a
year. That was the field that I had
to break into, but I was an enthus
iast and I wanted to do something
to leave the world better than I
found it, and after studying with it
on my brain for about three months,
piling up statistics, and having only a
slim education, but some courage, I
finally carried along until I brought
the subject up before a mechanics'
union. About 25 of us met to organ
ize a co-operative society: 18 agreed
to take one pound shares. After de
clining the chairmanship, I did not
wish any office, as being its promoter,
I had to take the first secretary's of
fice.
Three pounds was subscribed the
first night, and a committee of five
elected. The committee met at my
home to formulate a system of work
ing and to propose rules of manage
ment. We wanted the best, so I wrote
to Rochdale for a copy of their rules.
I never got an answer, as their first
secretary, I think his name was Cow-
per, was on his deathbed, but Mr.
McLeoud, our chairman, wrote to the
manager of the Civil Service Co-op,
then running in London. He told us
they started with four members and
advised us to begin without any rules;
to make them as we saw the neces
sity for same. We took their advice
with honest determination. The sec
ond meeting of the directors was in
my home, 11 Elinor Road, Woolwich.
We made two rules: first that our
capital should start with one pound
per member, to raise it as we went
along in installments. I next pro
posed the rule which proved the sheet
anchor of our society; that no man
should have more than one vote, no
matter how many shares he should
hold. At the time we started we
knew nothing of the Rochdale rules.
The next thing was when and where
to start. To rent a store was out of
the question. McLeoud said as soon
as we could buy a few things we
should start. I said they could have
my spare room. After looking it
over that was agreed—and in three
weeks I collected eight pounds, and
with a committee bought a chest of
tea of 90 pounds, 100 pounds of sugar
and two crocks of butter. With those
three articles we started what has
proved to be one of the strongest Co
ops in the British Isles. We had no
overhead expenses. I charged noth
ing for the room. It was only open
two hours—from eight to ten of a
Saturday evening. Two of the com
CO-OPERATION 27
mittee attended to the sales, in turn.
Understand, it was on a cash basis.
What we took in the first week, with
a few more dollars on shares, enabled
us to add a whole side of sugar cured
bacon, 200 Ibs. more of sugar, 25
pounds of coffee, 3 crocks of butter
and quite a number of spices. And
so it kept accumulating until, at the
end of three months, the little room
was so full we had to get out. The
only expense had been for scoops for
sugar and tea, and scales. Our mem
bership had risen to 30. We had
added drygoods for sale on a Wed
nesday. The grocery goods had to
be moved and the counter prepared
for drygoods, and then moved back
again for the groceries Saturday
night. Now for all this time and for
two years no wages were paid. The
last year we paid for the rent of half
of a house.
The Co-op went slow for three
years, but the directors had grit. At
this time a little trouble started that
was a test for the principle of one
vote for each member. I will state
that on my visit to the office of the
Wholesale in London, Mr. McGinnis,
in commenting upon our start to the
rest of the staff whacked me on the
shoulder and said, "If it had not been
for that little clause you put into the
first rule of one man, one vote, the
Royal Arsenal would have collapsed."
In the fourth year there were 77
members. The next year it jumped
to 232. It rose to 1234 and has kept
climbing until now it has passed the
hundred thousand mark, has over 60
branch stores, 3 big buildings, and
also owns 1100 dwelling houses with
enough room on the estate for 5000
more, and owns also a pretty country
place, Shorenells, where our mem
bers can go for their vacation.
Well I think I have given you
enough experience of how we started.
I am now too far advanced in years
to puzzle my brain any further, but
I am glad to know that I have done
one thing that is a success and a bene
fit to my fellow-men.'

28 CO-OPEKATION CO-OPEKATION 29
PRACTICAL WORK OF THE LEAGUE
REPORT OF THE ACTIVITIES OF
THE CO-OPERATIVE LEAGUE
FOR 1921
During the past year The League:
1—Sent out, in response to re
quests, 131,732 pieces of literature
and 1500 books.
2—Published two monthly maga
zines, averaging 12,000 copies per
month.
3—Issued a monthly practical bul
letin to affiliating societies, and sent
out a news service to 129 papers of
the labor press.
4—Received and answered 3500 let
ters asking for advice and informa
tion ; and sent out 10,300 circular let
ters on routine work of the Co-opera
tive Movement.
5—Conducted two courses in Co
operation over a period of three
months; embracing Store Manage
ment, Accounting, and Educational
subjects.
6—Published a syllabus for the
study of Co-operation in schools, col
leges and study groups.
7—Sent speakers to 162 meetings
in 35 states from coast to coast.
8—Sent two delegates to the Inter
national Co-operative Congress in
Switzerland, who visited over 200 co
operative institutions in 10 countries,
addressed audiences in Denmark, Ger
many, Czecho-slovakia and Switzer
land, and lectured at the International
Summer School at Basel.
9—Interviewed 500 visitors in the
offices of The League from the U. S.
and 12 foreign countries.
10—Circulated illustrated lectures
and moving picture films on Co-opera
tion.
11—Wrote 50 special articles for
magazines and newspapers.
12—Organized Women's Guilds,
and sent suggestions for socials, en
tertainments and members' meetings
to 400 societies.
13—Gave legal advice on incorpora
tion, charters, taxation, litigations,
etc.
14—Drafted a model co-operative
law for introduction in all states.
15—Investigated and lodged formal
complaints with State authorities
against fake co-operatives, and
warned societies of fraudulent and
unsound enterprises.
16—Published advice and warnings
on the falling market, overbuying, in
come tax, and other practical business
policies.
17—Gave written advice on prob
lems of store management, sent out
technical advisers, and supplied .ac
countants and managers where they
were needed.
18—Established one District Ad
viser in Kansas, and New Mexico.
19—Revised and brought up to date
"The Story of Co-operation," "The
British Co-operative Movement" and
other leaflets on Co-operation.
20—Through news clipping agen
cies and papers coming into the office
from all the states, The League has
been able to keep a card catalogued
record of the co-operative enterprises
starting and failing. It sends out let
ters and literature to all these so
cieties, offering advice and help.
"HOME CO-OPERATOR"
LAUNCHED
One of the most interesting things
to be observed by the co-operative
travelers in Europe is the preva
lence of popular little monthly maga
zines circulated among the members
of the co-operative societies. In
every country where Co-operation is
booming, these little home magazines
are found. They are simple in
style, and usually contained a good,
snappy editorial on some phase of Co
operation, and news of the Movement.
It was found that these little home
magazines were one of the most effec
tive means of keeping the interest of
the members at white heat.
"Why cannot the Co-operatives in
this country use this powerful and
simple educational medium ?" was the
II
thought that came to our minds. Ac
cordingly, we have launched a new
magazine—the "Home Co-operator."
It is a four-page monthly paper which
keeps the individual members of local
societies in close touch with the big
events in the Movement, and edu
cates them constantly in the co-opera
tive idea. It pushes the co-operative
idea in such a way that the people
will read it.
To place a copy of this magazine in
the hands of each and every member
of a society will cost you only twelve
cents a year. If a society has three
hundred members, it will cost ?3 a
month to keep them interested and in
formed about the Movement. Is it a
good investment? The condition of
the Movement in Germany, France,
Switzerland and other countries,
where this educational work is being
used, is the best answer.
If further details or sample copies
are desired, write to Albert Sonnich-
sen, the Editor of the "Home Co-oper
ator," Willimantic, Connecticut.
A MODEL CO-OPERATIVE LAW
A Model Co-operative Law for
adoption by the various State Legis
latures has been drafted after more
than a year of study by the Commit
tee on Legislation of The League.
The Model Law fills a real need.
There are few States having even
passable laws governing Co-opera
tive societies. Some States do not
permit Co-operatives to follow the
Rochdale principle of "one vote for
every membmer;" some allow proxy
voting. Very few States have drawn
a clear distinction between Roch
dale Co-operation and the fake ar
ticle. The Model Law was drawn
up with a view to these and many
other factors.
If adopted universally, the Model
Law will undoubtedly stimulate the
development of the Movement,
while at the same time stamping out
the fakers. Co-operative societies
should prevail on the State repre
sentatives in their districts to intro
duce the Model Co-operative Law
into their legislatures at the ear
liest possible moment. Copies of the
Model Law will be sent on request.
HOUSING IN EUROPE
Our readers will be interested in an
article appearing in the February
number of the Review of Reviews,
entitled, "Co-operative Homes for
Europe's Homeless," by Agnes Dyer
Warbasse. It is an article of 7,000
words with sixteen illustrations, de
scribing at length her studies of co
operative housing in nine European
countries during last summer. The
manner in which the housing crisis is
being handled by our fellow Co-oper
ators abroad is most encouraging and
stimulating.
WOMEN'S GUILD ORGANIZED IN
A COURT-ROOM
The Court Room at Pratt, Kansas,
was used for an unusual purpose last
month by the Co-operators of that
city. Permission was secured for the
use of the Court Room by the Co-op
erative Society which held an educa
tional meeting at which Mrs. Mabel
W. Cheel, of The League, spoke. Be
fore the meeting had been finally ar
ranged for, Mrs. Cheel insisted on
having women at the meeting. One
hundred and fifty women turned out,
interested and keen for an afternoon
in court. An enthusiastic meeting
was held, which was followed by the
formation of a Woman's Guild.
It was a sight good for the eyes of
Co-operators. In the rotunda of the
Court House, tables were set up from
which refreshments were served to
the audience after the meeting. Law
yers and clerks who had occasion to
visit the Court House to file papers
rubbed their eyes in astonishment to
see the place in the hands of the co
operative society.
Since this meeting, many women
have joined the society, and the or
ganization of the Women's Guild
promises to be of substantial help in
promoting loyalty and enthusiasm
among the members.

I 1
30 CO-OPERATION CO-OPERATION 31
CO-OPERATIVE MOVING PIC
TURE THEATRE
It is possible for the audience to
run the show. A fine-looking theatre
building was erected and is owned by
the people of New Athens, 111., on a
co-operative basis. Mr. Wuess, the
manager of the local co-operative
store, took the initiative and put the
proposition up to the members of his
society and the rest of the citizens
of the little town. There was not a
decent show house in the community,
and he proposed that the citizens who
liked shows should put up the money
themselves and build one. Immedi
ately $15,000 was raised in cash, a
mortgage loan of a similar amount
was secured from the local bank, and
the theatre became a fact. Four
nights a week the society runs a mov
ing picture show, charging only ten
cents admission. The profits now go
to paying up the mortgage. On the
other two nights of the week the
theatre is rented to outsiders, some
times to regular theatrical road
shows, which hitherto had never been
able to visit the town. The interior
is beautifully fitted up and seats 700
people. Similar co-operative theatres
may be found in Beuld and Staunton,
111., and in Newmanstown, Pa.
CO-OPERATIVE BANK AT
HAMMOND, IND.
On October 20th the Brotherhood
of Locomotive Engineers bought 51
per cent of the stock of the People's
State Bank of Hammond, Ind., which
is now known as the People's Co-oper
ative State Bank of Hammond, Ind.
This bank is being operated along
the same lines as the Brotherhood of
Locomotive Engineers' Co-operative
National Bank and some of the gen
eral officers of the B. of L. E. are on
its board of directors. Since the re
organization of the Hammond Bank
its deposits have grown over $60,000.
Hammond and vicinity is a highly in
dustrial section, and this bank gives
NEWS AND COMMENT
the workers a fine opportunity to in
vest their efforts and their money
in the great work of democratizing
finance.
HOW THE FARMERS' UNION IN
SURES THE CO-OPERATORS
The Farmers' Union Co-operative
Insurance Company began work in
October, 1918, and by August, 1921,
had eleven and a half millions of dol
lars of insurance in force. The farm
ers are insured against loss by fire,
lightning, windstorm, and tornado.
The cost has proved to be about $7.50
per $1,000 for three years, whereas
the same insurance in the old-line
companies would be about $17.50.
Therefore the cost of co-operative in
surance to these farmers is less than
half of what it once was when they
were at the mercy of profit-making
insurance companies.
In three years these Co-operators
have saved themselves more than
half a million dollars. They have
also learned to run the complicated in
surance business. And now they are
preparing to go in for hail insurance
and other activities beyond that. The
workers of our cities can learn some
thing from these agricultural Union
ists and Co-operators.
THE CLEVELAND DAIRY
PROGRESSES
The Consumers' Milk Distributing
Society of Cleveland, Ohio, which was
started about the first of December,
had collected and had in hand over
$8,000 in the first month. Over
$20,000 had been subscribed.
The private milk dealers at first
told the people of Cleveland that they
were making only a quarter of a cent
a quart on milk. But since the co
operative creamery has started to or
ganise, the private dpalers have put
down the price of milk two cents.
The co-operative cloud on the horizon
seems to be accomplishing something.
The dealers, according to their own
statements, now feel so sorry for the
I
people that they are willing to lose
one and three quarters of a cent a
quart. Thus the co-op creamery is
already saving the people over $1,000
a day on their milk bills. When the
creamery starts operations and there
is a drop of a cent or two more,
there may be a saving of $100,000 a
month to the people. In other words,
the co-op is indirectly declaring divi
dends to consumers equivalent to 10
per cent on over $3,500,000 of sales a
year. ______
ILLINOIS STORES THRIVE
The news coming in from the local
societies in Illinois is encouraging.
The Farmington Co-operative Society
returned savings to its members, of
8 per cent, amounting to $2,733. This
society did a business during the last
quarter of $43,074. About a year
ago its business was in the neighbor
hood of $20,000 a quarter, so that the
society has made a gain of more than
100 per cent in business. This co-op
is one of the Rochdale societies, affili
ated with the Central States Co-op
erative Wholesale Society.
The Pana Co-operative Society, de
spite its slender resources, which
amounted only to $3,920, paid a 5
per cent savings-return during its last
quarter, in addition to interest on
share and loan capital.
"OUR CAFETERIA"—NEW YORK
CITY
The last balance sheet of Our Cafe
teria, organized in 1920, for the last
half-year shows that the current as
sets are more than eighteen times the
current liabilities. For the six months
$82,000 worth of business was done.
After deducting all administrative
and operating expenses and after set
ting aside $1,874 for depreciation and
taxes, there remained a surplus of
$5,529 for the half year. An 8 per
cent savings-return was paid. This
co-operative restaurant now uses two
whole buildings in New York City—
52 East 25th Street and 54 Irving
Place. It has recently opened a new
downtown branch at 32 Thames
Street, near the Curb Market. Real
co-operation is penetrating into the
district of "big business."
A MINIATURE CO-OPERATIVE IN
CLEVELAND
The co-operative idea is spreading
in Cleveland, Ohio. The girls of the
Industrial Club of the Y. W. C. A.
have started a co-operative store. It
is said to be the smallest department
store in the city. Its stock occupies
a space about as big as a couple of
writing desks, and consists of most
everything that young women want,
from hairpins to hand bags. Many
hand-made articles are carried. Home
made candy is among the goods sold.
Shares are $1 each. A savings-re
turn of 4 per cent was paid at Christ
mas time. Smaller beginnings than
these have led to great economic
structures in Europe.
WARNING FROM MISSOURI
The Co-operative Association of
America is formed under the com
mon law of Missouri as a trust estate,
and the records of the Recorder's
Office show the names of Clifton C.
Fitzpatrick, Oscar H. Damon and
Arthur Lesser as Trustees of all
funds, property and estates, to hold
same in trust during their life time.
They have put a large number of
stock salesmen in the field and have
been successful in floating quite a
large amount of this stock. So far
their activities have been confined
principally to the city of St. Louis.
They guarantee the shareholders 5
per cent, discount on his merchandise
purchases, and 6 per cent, on their in
vestment to be paid out of the sur
plus of the Association. In addition,
the Association is to retain 3 per
cent, of the turnover of the stores.
They tell the people that as soon as
300 members have been secured in
their neighborhood that a store will
be started. So far they have only
one store started.
The next we heard of them was
when two of their stock salesmen

32 CO-OPERATION CO-OPERATION
appeared at Moberly, Mo., and tried
to induce the railroadmen who were
trying to organize a co-operative so
ciety there to turn the organization
over to them. They took the matter
up with The Co-operative League of
Missouri and we advised them to re
port these gentlemen to the Prose
cuting Attorney immediately. We
have heard nothing more from
them. We will see that every labor
group in the State is advised of the
fact that they are in no sense a co
operative organization.—The Co
operative League of Missouri.
STRIKE INSURANCE
The masters of industry now
realize that, in assuming the "open
shop," wage cutting task, they "bit
off more than they could chew." Face
to face with the fight of their lives,
yet eager to protect their own inter
ests and safeguard profits, employers
in various sections of the country
have taken strike insurance.. This
precautionary measure assures the
employer a certain income, even
though his business is completely
tied up by a strike against wage re
duction, or a strike for any other
reason.
By investing a small amount of
money with his fellow-workers, the
wage-earner can also have a most
practical form of strike insurance;
he can hold a policy in the most re
liable company in all the world. Be
tween five and six hundred working
people in Bloomginton, 111., alone are
carrying this model strike insurance,
and the number is increasing. Poli
cies are written by the Bloomington
Co-operative Society, and they are
known as membership certificates;
they simply signify that the holder
owns five shares of stock in the Co-op.
Very simple, is it not?
Membership in the Co-operative
Movement is the greatest, most re
liable protection against hardships
and inconveniences usually attending
protracted strikes and lockouts. A
workingman, with an investment in
a Co-operative Store, is well provided
with strike or lockout insurance, be
cause he is guaranteed a specific
amount of credit; he knows that he
will not suffer hunger, even though
he is forced on strike or is locked
out. Commercial boycotts and star
vation schemes have no terrors for
the holder of a membership certificate
in a co-operative store.
Just how well any local union is
prepared to win a strike or a lock
out depends largely upon how many
members of that organization have
provided themselves with practical
insurance by identifying themselves
with the co-operative movement.
Those of us who believe in this won
derful movement and work for it
must redouble our efforts as insur
ance agents, because the trade union
movement is going to face a fight
for its life, and organized labor must
be placed in a state of preparedness.
—Martin A. Dillman, in The Bloom
ington Searchlight.
CO-OPERATION DAWNS AGAIN
IN IRELAND
In looking back over our Irish
Movement during the terrible period
now happily drawing to a close, it is
consoling to find that notwithstand
ing all the hardships and untoward
circumstances under which it has la
bored, a certain amount of real pro
gress has been made. Many of our
creamery societies have adopted the
general store idea with much more
far-reaching results than the ma
terial convenience of such expansions.
Members or milk suppliers of these
societies whose interest in the concern
did not extend beyond the price they
received for their milk, and whose
knowledge of the Movement was a
blank page, have been transformed
into earnest, enthusiastic Co-opera
tors. The Irish Co-operative Women's
Guild Movement has struck its roots
deeply into the working of societies,
and it is destined to grow into a pow
erful influence for co-operative pro
gress. Manufacturing of our famous
Irish homespuns has been taken in
hand, on co-operative lines, and the
manufacture of clothing is already
one of our chief Co-operative develop
ments. In various other directions
the co-operative idea is being en
grafted on industry.
There are other industries lending
themselves in a particular manner to
co-operative enterprise. What is now
to prevent our engaging in them?
What about our once famous tan-
naries ? How much longer are our in
numerable mills to remain as solitary
ruins along the banks of our noble
rivers? When and by whom shall
our silver, lead, copper and iron mines
be re-opened? What about the un
told wealth of our fisheries, our tex
tiles, our foundries ? Shall we await
the advent of syndicates of capital
ists to exploit our country, enrich
themselves at the expense of our la
bor, and substitute an economic for a
political slavery on our race? Or
shall we, as men, as Co-operators,
look squarely at the facts presented,
and recognizing in their true perspec
tive the potentialities of our country,
determine, by combined effort, to re
store her industrial life, to develop
her bounteous and varied resources,
and to make her what she was in
tended by God and Nature to be, a
queen amongst the nations of the
earth?—From the Irish Agricultural
Wholesale Society Bulletin.
WISDOM FROM GERMANY
During the session of the Reichs
tag, November 17th, the Minister of
Public Economy, Herr Schmidt, re
sponding to the complaints against
those who were exploiting the misery
of the public, made the following re
marks concerning the co-operatives:
"The consumer has within his grasp
a weapon which is very powerful, with
which to defend himself against the
exactions of business; it is the co
operative organization. Let him make
use of it. He can be sure that the
little that he gives to the co-opera
tives will not go toward the payment
of tithes to commercial speculation.
"I see the position of the consumers
reinforced by means of the consum
ers' co-operatives and the network of
their organization. I wish to call at
tention to the co-operatives, which,
through their development, are com
peting against the commercial inter
ests in cutting down high prices.
This practice of self-help, this educa
tion of the consumer is, in my opinion,
worth infinitely more than all the
laws and all the penal decrees."
ITALIAN GOVERNMENT AIDS
CO-OPERATION
The Italian Parliament recently
passed a law which increases by 200,-
000,0000 lire, the amount granted by
the State to the National Credit In
stitute for Co-operation. This Insti
tute which has headquarters in Rome
and about twenty branches in the
chief provincial towns was consti
tuted by Royal decree in 1913, in or
der to place at the disposal of co
operative societies of all kinds the 'ne
cessary credit for the development of
their activities.
The Institute at Rome is the most
important financial establishment of
Italian Co-operation. At the end of
1919 it had relations with 5,370 co
operative societies, comprising 3,621
distributive societies, 1,227 produc
tive and labor societies, 349 agricul
tural societies, 22 agrarian universi
ties, and 151 miscellaneous societies.
During 1920 it granted loans to the
total amount of 885,000,0000 lire
(against 310,000,000 in 1919). Dur
ing 1920 loans to the amount of 142,-
000,000 lire were granted to 380 pro
ductive and labor societies, in order
to enable them to execute works to
the value of 218,000,000 lire. The
agricultural societies received consid
erable support from the Institute, and
were thus enabled to more than treble
the amount of land under their culti
vation. ______
HUNGARIAN DOCTORS CO
OPERATE
The National Union of Hungarian
Doctors organized a co-operative so
ciety for the manufacture of surgical
instruments and orthopedic appli-

34 CO-OPERATION CO-OPERATION 35
ances. Organization proceeded slowly
until the "Hangya" Union gave its
support to the new society. Work
shops have now been opened in which
from 30 to 40 skilled workmen are
employed, manufacturing the most
delicate surgical instruments. Or
thopedic appliances, hospital furni
ture, laboratory requisites, operating
tables, etc., are also being manufac
tured. The Board of Directors of the
society consists of doctors and of ex
perienced Co-operators.
Two large co-operative unions in
Hungary, the "Hangya" and the Cen
tral Co-operative Credit Institute,
have established a first-class hospital
with 60 beds. This hospital is avail
able for employees of the co-operative
societies.
A FRENCH "CO-OPERATIVE
DAY"
The Co-operators of France made a
national drive for increased member
ship on December 4th. The day had
been prepared for as an important
gala day for French Co-operators.
The French Union was busy for weeks
preparing posters, and literature, or
ganizing meetings in various cities,
all culminating in a great appeal to
non-members to come into the Co
operative Movement. The fourth of
December fell on a Sunday, and the
day was celebrated throughout the
whole country. A special edition of
"L'Action Co-operative," the official
journal of the French Movement, was
distributed.
Most of the local societies partici
pating in the drive had very gratify
ing results. The Co-operative Union
at Paris led in the number of new
members recruited, and the capital
collected. In one little town in the
region of the Marne, it was found that
all the inhabitants were Co-operators,
with the exception of seven men.
The usual mass meeting was held in
this town on "Co-operative Day," and
then the whole mass meeting went in
a body to the homes of the seven non-
members. Needless to say, the seven
joined! The town is now 100 per
cent co-operative.
At San Quentin, 123 new members
were signed up and the capital was
increased by 102,000 francs, the day
of the big drive. At Gueret, 150 new
members and 30,000 francs were col
lected in one day. The reports are
not as yet all in for entire France, but
all indications prove that the national
campaign during "Co-operative Day"
was a huge success.
Up to the 1st of January, 222 so
cieties reported gains of 14,597 new
members. In the banks, the capital
was increased 1,606,389 francs and de
posits were increased 100,000 francs.
COURSE ON CO-OPERATION IN
THE COLLEGE OF FRANCE
Charles Gide, the eminent Co-
operator, author and economist, has
been appointed to the new chair of
Co-operation at the College of
France, Paris.
This is considered by our French
fellow Co-operators to be an event
of extreme importance. They see
in it a recognition of the value and
the position that the Co-operative
Movement occupies in the national
life.
Although seventy-four years old
and weighed down with the numer
ous and important positions that he
has continuously occupied in the
educational and economic world,
Monsieur Gide assumes his new du
ties with enthusiasm, for he is dedi
cated to the promotion of the knowl
edge of what he believes to be "the
greatest of all causes—the Consum
ers' Co-operative Movement."
A dinner was tendered to him on
the eve of the opening of the course
at which glowing tributes to the
years of service were made to
"France's foremost Co-operator, the
kind friend, the wise teacher, the
illustrious leader of the Co-opera
tors of all lands."—Extract from
communication from A. Daudet-
Bancel, December 21; Union of
French Consumers' Societies.
THE CONDITION OF CHAIN
STORES IN NEBRASKA
Our Farmers' Union State Exchange is
operating eight branch stores. The first
of these was opened in March, 1920, and
five others were opened in that year. Two
have been put in since last spring. You
understand how these are organized. The
local people take stock in the State Ex
change, and the Exchange owns and oper
ates the stores. Of course, the branch
store business is quite incidental to the
larger business of the Exchange in supply
ing independent co-operative associations
and groups of Farmers' Union members
throughout the state.
Up to last March the branch stores were
not very satisfactory to anybody, either
the local people or the Exchange manage
ment. In March, the Exchange employed
a chain store expert, a man formerly with
the "A. & P." system, to put the branches
on a satisfactory basis, and to extend the
system. He has succeeded in making the
branch stores satisfactory to the local
people, but they are still financially un
profitable. That is why only two stores
have been added to the system since the
expert came. No others are contemplated.
CORRESPONDENCE
One of these branch stores, one of the
two started last summer, is here in Omaha.
It differs from the others in that its pat
rons subscribe to no stock in the State
Exchange. The reason for putting it in
was to afford an outlet for produce coming
to the Exchange from stores out in the
state. I understand that the Exchange has
offered to turn this store over to the labor
ing people here whenever they organize an
association to handle it. If the labor peo
ple of Omaha are ever going to do anything
co-operatively they should do it for them
selves, and not be spoon-fed.
Just now the Board of Directors of the
Farmers' Union State Exchange is consid
ering a form of contract with independent
co-operative stores throughout the state
to supply them with all of their goods.
This would give all of the advantages of
the chain-store system, without the very
serious disadvantages. Our big problem
has been to get the local Farmers' Union
Co-operative stores to mobilize their buying
through the State Exchange. This diffi
culty is made the greater by the fact that
the stock of the Exchange is owned by in
dividuals, instead of the local associations,
as it should be.
L. S. HERRON.
FROM CRESTLINE, OHIO
The Crestline Co-operative has opened a
second store in the downtown part of our
village, which is operated entirely cash and
carry. The first store retains the credit
and delivery system. We opened about
eight weeks ago, and have had good suc
cess so far.
On November 29 we had a stockholders'
meeting, attended by over 250 members
and families and friends. Roy Shanks was
speaker of the evening and gave us a fine
interesting talk. He also helped in getting
the new store started. We remembered
your advice and had the meeting largely
social—music, speaking, and lunch, with our
best coffee, real cream, cream doughnuts
and sandwiches served to all present, and
dancing afterwards. Everybody was en
thusiastic and had a good time.
R. G. DONALDSON,
Vice-Pres. Crestline Co-operative Co.
MAKING CO-OPERATORS IN
WISCONSIN
Enclosed please find one check, covering
$20, and another one, covering $5. The
Co-operative Central Exchange decided to
donate one year's subscription of "Co
operation" to twenty of the students at
tending our last Co-operative course. The
25 names are appended. The other five
subs have been solicited by the under
signed.
Wishing you a happy and .prosperous
New Year, I am
Yours for Co-operation.
SEVERI ALANNE.
YARDLEY HAS DIFFICULTIES
AND HOPE
The manager we had previous to July 10,
1921, ran us behind $700 in five months,
and the stockholders at their meeting last
June were ready to quit; but we succeeded
in changing by-laws and changing our
shares from $100 to $25 a share. The
newly-elected Board took hold and fired
the manager and hired another, who, in
turn, fired a clerk and hired another. In
voice at end of first quarter showed over
$200 on the right side for the quarter; but
this present quarter is not going to be so
good, as business has fallen off. However,
beginning the first of the year, the em
ployees have cut their salaries the sum
total of $22 per month, so you see we are
having to fight for our bare existence. We
are handicapped for want of cash to buy
with, as we pay cash for all goods bought,
and sell on credit to members. We have
several loyal Co-operators, but we can't say
much for a number of our members.

36 CO-OPERATION
I do believe we are going to be able to
live through it. We don't get the support
of the community we should have by far;
yet we give better service, better goods,
and, I honestly believe, better prices.
Yours, etc.,
H. H. PERKINS,
Secretary Consumers' Co-operative Society.
Yardley, Wash., December 21, 1921.
HAPPINESS IN WORKING
TOGETHER
There is no happiness greater than that
obtained from the association of kindred
spirits, searching toward a goal which
means the good of all mankind. I am
happy to be associated with you.
MARY RAOUL MILLIS,
Atlanta, Ga., Co-operative Society.
THE ONE-VOTE PRINCIPLE
To my mind, when the fundamental prin
ciple of one vote to one member is broken
the whole foundation of Co-operation is
broken. H. HASKELL,
Union Workers' Credit Union.
Boston, Mass.
BOOK REVIEW
"The Consumers' Co-operative Movement."
The book with the above title, by Sidney
and Beatrice Webb, published by Long
mans, Green & Co., is not a history of the
Co-operative Movement, but a technical dis
cussion of its methods and its relation to
other movements making for democracy.
It is based especially upon the British
Movement. The authors frankly take the
ground that Co-operation need no longer be
discussed as a means for helping the poor
to save a little or as a scheme for reducing
the cost of living, but that the Consumers'
Co-operative Movement is capable of sup
planting in a large measure the capitalist
system.
Six full chapters contain not only a vast
amount of information, but present a phil
osophy to which the Movement itself has
given rise. The first chapter describes the
distributive store and the practical work
ing of the society. The deficiencies of
educational work is deplored. When socie
ties progress enough to employ a full-time
educational secretary they are found pay
ing him less than one-half what they pay
•the store manager. They note the same
disregard for the value of the intellectual
teacher, compared with the employee who
has to do with money and goods, that is
found in capitalistic business.
The chapters on federal institutions deals
with national organizations such as the
C. W. S., the Union and the Women's
Guild.
A chapter on co-operative employees
give_s the essential information on this
subject from the British standpoint. The
chapter on the effects upon the Co-opera
tive Movement of the great war sets forth
the facts which reveal the prostitution of
the British government to the privileged
profit-making interests and the reasons
why the Co-operators were impelled to en
ter politics.
The Co-operative Movement has reached
a point at which criticism of its defects
must not be withheld. The Webbs have
realized this, and have written a chapter
on some remediable defects and shortcom
ings of the Movement in Great Britain.
This is a most opportune contribution. It
is fair and impartial and should prompt
British Co-operators to give it their serious
consideration—and the Webbs their thanks.
The future of Consumers' Co-operation
is discussed in the most illuminating man
ner. Conclusions are based on facts. The
authors visualize the continuous growth of
Co-operation, but do not consider it as a
substitute for the state, nor do they ex
press a belief that it may supplant the
state. They see a place in the future for
both voluntary and compulsory association
of the people. They say:
"The Consumers' Co-operative Move
ment in Great Britain was for the first
half century of its development from the
Toad Lane Store ignored by the news
papers, unsuspected by Parliament, barely
noticed by the .professors of political econ
omy, unmentioned in the contemporary me
moirs and diaries of the leaders of society,
and not even alluded to in the biographies
of such political personages as Cobden and
Bright, Gladstone and Disraeli, or in the
speeches of Salisbury and Chamberlain. A
hundred years hence, we venture to pre
dict, school text books and learned trea
tises will give more space to consumers'
Co-operation, its constitution and ramifi
cations, than to the rise and fall of political
parties or the personalities of successive
Prime Ministers."
The Webbs are not to be classified among
the British students of social problems who
are still confused as to "the place in co
operation" of the syndicalist producers
groups and the "self-governing workshop."
They distinctly assert that by the Co-oper
ative Movement they mean "exclusively the
association of consumers for the purpose
of superseding the capitalist profitmaker
in the conduct of industries and services."
British Co-operators need to get this idea
well established, because some are still
under the spell of confusion which came
down from Owen, Neale, Holyoake and
Williams. Such work as the W_ebbs' and
that of Leonard Woolf cannot fail to make
their impression upon British thought.
J. P. W.
CO-OPERATION
PUBLICATIONS
OF THE
Co-operative League of America
HISTORICAL p«* C°PV Pe* 10(>
3. Story of Co-operation .................................................$ .10 $6.00
7. British Co-operative Movement ........................................ .10 6.00
10. A Baker and What He Baked (Belgian Movement)...................... .05
38. Co-operative Consumers' Movement in the United States............... .05 4.00
TECHNICAL
4. Hew to Start and Run a. Rochdale Co-operative Society.................. .10 4.00
5. System of Store Records and Accounts................................ .50
6. A Model Constitution and By-Laws for a Co-operative Society........... .05 2.60
8. Co-operative Education. Duties of Educational Committee Defined..... .10
9. How to Start a. Co-operative Wholesale................................ .10
27. Why Co-operative Stores Fail .............. .......................... .02 1.00
2. Co-operative Store Management ...................................... .10
14. How to Start and Run a Women's Guild................................ .05
MISCELLANEOUS
46. Producers' Co-operative Industries ................................... .10
11. Control of Industry by the People Through the Co-operative Movement... .10
12. Credit Union and Co-operative Store.................................. .05 1.76
34. Co-operative Movement (Yiddish) .................................... .02 1.25
43. Co-operative Housing ................................................. .10
45. Harmonizing Co-operative Producers and Consumers.................... .03
ONE-PAGE LEAFLETS
(One cent each; 50 cents per 100; $2.50 per 500; $4 per 1,000)
(1) Principles and Aims of the Co-operative League of America; (17) Do You Know Why You
Should Be a. Co-operator; (20) Why Loyalty Is Necessary; (21) Cost and Crime of
Credit; (22) A Real Co-operator; (25) Resolutions Adopted by A. F. of L.; (26) Factory
Workers, Co-operatel; (28) Do You Know About Co-operation in Europe?; (40) Have
You a Committee on Education and Recreation?; (44) What Is the Co-operative
Movement? Miscellaneous Educational Leaflets.
MONTHLY PUBLICATIONS
CO-OPERATION—(In bundle lots, $7.50 per hundred). Subscription, per year......... .$1.00
HOME CO-OPERATOR, 4 pages ................................................ $1 per 100
INTERNATIONAL CO-OPERATIVE BULLETIN (Pub. by The I. C. A.)...... .per year, $1.50
BOOKS
The following books are recommended as containing the best discussions of the modern
Co-operative Movement. They made be ordered through The League:
Bubnoff, J. B.: The Co-operative Movement in Russia, 1917.......................... .$1.25
Faber, Harald: Co-operation in Danish Agriculture, 1918.............................. 2.75
Flanagan, J. A.: Wholesale Co-operation in Scotland, 1920............................ 2.00
Gebhard, Hannes: Co-operation in Finland, 1916...................................... 2.00
Gide, C.: Consumers' Co-operative Societies, 1921...................................... 2.50
Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, $2.00; paper
bound ........................................................................... .60
History of Co-operation in the United States. Vol VI, John Hopkins University Studies,
1888 ...............................................................................4.00
Holyoake, George Jacob: The History of Co-operation, 1908............................ 2.00
Holyoake, George Jacob: The History of the Rochdale Pioneers........................ 2.00
Howe, Fred C.: Denmark, a Co-operative Commonwealth, 1921.......................... 2.50
Maxwell, Wm.: History of Co-operation in Scotland, 1910.............................. 2.00
Nicholson, Isa: Our Story ............................................................ .25
Powell, G. Harold: Co-operation in Agriculture. Macmillan ........................... 1.50
Redfern, Percy: The Story of the C. W. S............................................. 2.00
Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918....................... 2.50
Smith-Gordon: Co-operation in Many Lands, 1920...................................... 2.50
Sonnichsen, Albert: Consumers' Co-operation, 1919. Cloth bound, $1.75; paper bound... .75
Stolinsky, A.: The Co-operative Movement. In Yiddish................................ 1.00
Webb, B. and S.: The Consumers' Co-operative Movement, 1921....................... 2.00
Webb, Catherine: Industrial Co-operation, 1917 ...................................... 1.50
Woolf, Leonard: Co-operation and the Future of Industry............................. 2.00
Woolf, L.: Socialism and Co-operation................................................ 2.00
"The Co-operative Consumer" and "Co-operation," Vols. I (1914-15), II (1916), III (1917),
IV (1918), V (1919), VI (1920), VII (1921)........................................ 1.25
Transactions of Second American Co-operative Convention, 1920....................... 1.00
(Ten cents postage should be added for books which cost more than $2.00, and five cents
for the smaller books.)

TOE CO-OPERATIVE LEAGUE OF AMERICA
(Member of The International Co-operative Allinace)
Executive Office: 2 West 13th Street, New York
An educational organization for teaching the history, principles, methods and aims of the
Co-operative Movement and for the promotion of Co-operation in the United States.
Join the League and thus help promote the education work of the Co-opera
tive Movement. Individual Membership, 1.00 a year.
Subscribe for CO-OPERATION
Formerly the "Co-operative Consumer." The Monthly Magazine of The League.
This Journal is Not Published for Front
Keep in touch with the Movement, $1.00 a year.
Co-operative Central Exchange
Wholesale Grocers and Jobbers,
Bakers
We supply goods to Co-operative Societies ONLY
We are owned and controlled by Co-operative
Societies.
We are organized to enable Co-operative Societies
to do collectively what they cannot do indi
vidually.
Co-operative Central Exchange
Offices, Warehouses and Plant:
Winter Street and Ogden Ave.,
SUPERIOR, WIS.
Co-operators' Ltd. Mutual Fire Insurance Co.
Is now writing Insurance in State of Wisconsin.
The Canadian Co-operator
Brantford, Ontario,
Canada
The organ of the Canadian Co-opera
tive Movement* owned by and con
ducted under the auspices of The
Co-operative Union of Canada.
Published monthly; 75c per annum
MOVING PICTURES
and
Stereopticon Lectures
may be rented from
CO-OPERATIVE LEAGUE OF ABIERICA
2 West 13th St., New York City
1. "Some Examples of English Co-operation."
Moving pictures of factory processes (two
reels) ............................... .$5.00
2. "Coperation in the United States."
With 63 Stereopticon views ........... .$3.00
3. "The Co-operative Momevent in Russia."
With 36 colored Stereopticon views... .$3.00
Co-operation in Scotland
In no part of the world is Co-operation further
developed, or more successfully practised than in
Scotland. If you wish to keep in touch, read
"The Scottish Co-operator"
(Published Weekly)
Subscription: Year 12 sh.; half-year, 6 sh.
Address, U S Paisely Road,
Glasgow, Scotland
THE PRODUCER
Issued Monthly Price 3d.
If you want to keep in touch with
business, organization, administra
tive affairs, and problems of the
British Co-operative Movement,
read THE PRODUCER.
Published by
Co-operative Wholesale Society, Inc.
1 Balloon Street, Manchester.
Post free 4 sh. 6d. a year.
The Trade and Technical Organ of British
Co-operation.
THE HOME CO-OPERATOR
A four-page magazine for
use in co-operative societies.
Issued monthly, in bundles, $1 per hundred.
Published by
The Co-operative League
Write to the Managing Editor, Albert Son-
nichsen, Willimatic, Conn.
A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in vol
untary organization, produce and distribute for their own use the things they need
Published monthly by the Co-operative League, 2 West Thirteenth Street, New York City.
J. P. Warbasse, Editor. Price, $1.00 a year. Entered as second class matter, December 19,
1917, at the Post Office at New York, N. Y., under ,the Act of March 3, 1879.
Vol. VIII, No. 3 MARCH, 1822 10 Cents
GOVERNMENT LOANS TO CO
OPERATIVES
The chief concern of Governments
these days is to keep themselves alive.
The people are growing restless un
der the profiteering which they feel
government in some way protects.
The discontent of the masses is not
to be treated lightly. England deals
with it by paying full unemployment
benefits. France treats the problem
by maintaining the biggest army in
the world. Germany pays unemploy
ment benefits, but does most by pro
viding employment; loans are made
t o co-operative societies i n large
amounts; and unemployment is much
less than in the allied countries.
In German towns and cities the
housing shortage is met by building
houses. In the United States it is
met by talk on the part of politicians
and profiteering on the part of land
lords and builders. German co-opera
tive societies are granted loans by the
government, the district and the mun
icipality up to 60 or 80 per cent of
the value of the property. These loans
are made for twenty years without
interest, provided that the property
is occupied by the owners and not
rented or sold for profit. The only
people who can comply with these re
quirements are the Co-operators, so
they are doing the building.
VITAL ISSUES
The British government in India
made loans to small co-operative
banks.
The Italian government -and the
French government from time to
time have made loans to co-opera
tive consumers' distributive societies
when public distress has been espe
cially bad. The time has come when
we should be thinking about these
things in the United States. We have
unemployment, growing discontent, a
lack of houses, and big finance in con
trol of the money and credit of the
country. Why wait longer? The
government is subsidizing the rail
roads in cold cash to the tune of $600,-
000,000. Not many years ago the
Government gave the railroadis an
area of land equal in size to New Eng
land. Most of them now are on the
verge of bankruptcy and loaded to
the gunnels with watered stock. All
;his is just a temporary present to
-he stockholders. The roads will run
down again and the Government will
take them over again, just as sure as
cars are run for profits. Now if these
stockholders are such pets of the
government, why would it not be just
as good to subsidize the plain people
a little?
We have the Federal Loan Act.. It
was supposed to be for the people.
But it is hog-tied, downed, and brand
ed with the seal and sign of Wall
1

38 CO-OPERATION
Street. The farmers, of course, can
get something out of it; but when we
think of what such a measure might
do, it is pathetic to witness the pov
erty of service it renders the people.
This Federal Loan Act should be am
plified so as to provide credit to co
operative societies.
Such loans to co-operative societies
should be protected by supervision
and guarantees that the societies are
not run for profit. That means that
they must be bona fide co-operatives.
And just there is the difficulty. We
have to explain and teach—patiently
and with long-suffering—just what
Co-operation means, and that it is pos
sible for people to do things for them
selves without the purpose of making
profit out of somebody else. Legisla
tors can be made to understand, if one
but have the patience of a teacher.
Along with such provisions should
go acts providing respectively for the
organization of national co-operative
banks, distributive societies, and
building societies. Government, state
and municipal loans to such organ
izations would give more relief than
subsidies to enterprises that are first
and last money-making schemes, the
.social value of which is secondary to
profits.
PROFITS, SALES AND TAXES
In Europe the hard-up govern
ments are attempting to tax the co
operative societies the same as they
tax the profiteers. In this country
we must prepare for the same thing.
The words "profits" and "dividends"
should be excluded from our co-opera
tive language as far as possible. They
are proving to be very expensive for
the European Co-operators. W e
should say "surplus-savings" and
"savings-returns" instead.
Now we speak also of sales. Sales
will be taxed in the United States be
fore many years have passed. The
Government will soon be resorting to
every expedient of taxation possible.
"Sales" is a dangerous word. Co
operative societies buy goods for
their members, but they do not sell to
their members. The Co-operators put
their money together in order to buy
together at wholesale a larger quan
tity of goods than any one of them
alone could buy. Sometimes they
stop with just one purchase, like a
house. Sometimes a group of people
make only one purchase of something
like sewing machines or coal or a car
load of potatoes or groceries. They
distribute among themselves what
they have bought and the transaction
is closed. If each puts in twenty-five
dollars and a group of people buy
$5,000 worth of coal, and they divide
the coal equally among themselves
they should talk only of buying and
distributing coal and not of selling
coal. That is the co-operative prin
ciple. When a family buys potatoes
and every member of the family is
a wage earner and contributes equally
with the others toward the purchase
of the potatoes, they do not sell the
potatoes when they come on the table.
They buy, distribute and consume.
But we have become so steeped
with money-making psychology and
lingo, that we shall find the 200 peo
ple who bought the coal boasting
about town that, "We sold $5,000
worth of coal right among our own
members." This same habit of
thought .should prompt them to say
at the table, "We were all very hun
gry and our sales of potatoes at din
ner today ran up to two potatoes
apiece." When the husband at the
table, instead of saying, "Please pass
me the bread," says, "I want to buy
another slice of bread," the victory
of the profit psychology is won and
the end of the human race is in sight.
In our ordinary co-operative .so
ciety, running a store, the people put
in their money and buy a stock of
goods for themselves. But they do
not propose to stop with distributing
just these goods. They propose to re
peat the process. As the goods are
distributed among the people who
own them they aim to replenish the
stock and keep on buying and distri
buting to themselves indefinitely. In
order to do this they must constantly
be putting in money into their com
mon fund. This is done in the fol
lowing manner: Each member has a
credit at the store in his share capi
tal ; he has already bought the goods;
but when he goes to the store and
takes out a package of goods he puts
back into the common fund enough
money to pay for another package
similar to that package and a little
more in addition. The money he
hands to the manager is his share of
the next pool, to go towards buying
more goods in common with the
money of all the other members. His
society does not sell goods to him; it
buys goods for him. The co-operative
store is not a selling business; it is a
buying and distributing business.
Confusion arises about this, be
cause we Co-operators use the same
methods and machinery and employ
the same language as the traders do.
We make our store look the same as
theirs, and our clerks talk the same.
We also introduce the complication of
selling to the non-member. We do
actually sell to him, and we do actu
ally make profit from him. For this
reason our business with non-mem
bers should be kept separately and
accounted for in our bookkeeping as
something quite apart from our co
operative buying and distributing
among our members.
We should not put down the word
"sales" on the report excepting sales
to non-members. "Goods distribut
ed to members," "goods distributed,"
"paid in by members," "paid in for
goods," "received for goods" or "turn
over account," are all correct terms.
"Turnover" is not so good. It would
be wise to invent a word to meet this
need such as, "distributions" or "quit
tances" in place of "sales."
The United States Government, like
the European governments, is stead
ily moving on toward bankruptcy.
We complain of the burden of taxa
tion; but the burden will increase as
the years go by. There will be no
turnip that will not be squeezed to
get blood out of it. It behooves us
to think of the future and build care
fully now.
CO-OPERATION 39
THEATRE COLLAPSES
Over 2,000 people have been killed
in theatre collapses in the United
States in the past ten years according
to a statement in the New York
Times of Jan. 30th. The Knickerbock
er Theatre in Washington fell last
month and killed 100 people.
It fell in because it was not built
for the purposes for which it was
supposed to be used. One thinks of
a theatre as being built for purposes
of entertainment and recreation. But
this theatre like most theatres in the
United States was not built for those
purposes. The people go on persis
tently nursing the fiction that it
was. The fact is, it was built and run
for the purpose of making profits.
Entertainment and recreation are ab
solutely secondary matters. There
was every reason for putting in cheap
material, shoddy material and bribing
inspectors to get by with it. To do
otherwise would not be good business.
After such an accident, there comes
a good deal of pious gush and a good
deal of impractical resentment. The
first is exemplified by the President
of the United States issuing a .state
ment to the effect that, "The terrible
tragedy has deeply depressed all of
us and left us wondering about the
revolving fates." Fates, but not a
word about the cause of the tragedy
or a word suggesting its prevention
comes from the officials who pre
side over the lives of the people
under assumption that they are the
"best minds." Investigation — oh,
"thorough and radical investigations"
have been made. More rigid in
spection of buildings and punish
ments for offenders will be insisted
upon. This means that the cost of
fixing up the next matter with the
building inspector will become a lit
tle more expensive. But not a step
will be taken by the Washington poli
ticians to prevent such occurrences by
removing the cause.
There are theatres and other com
munity buildings that were built for
service by the people who use them

40 CO-OPERATION
and not for profit. The President, his
cabinet, the congress, and all the of
ficials of Washington should make a
pilgrimage to one of these shrines,
that teach the religion of the coming
day, and stand before it with bared
heads bowed in awe and in reverence
to do penance for their blindness and
sloth.
CO-OPERATION'S DUTY TO
TRADE UNIONISTS
There is much talk about the duty
that the Co-operators owe to trade
unionism. It is all very good. Co
operative societies should, and do,
prefer to hire union labor. In fact,
societies stipulate that their em
ployees shall be compelled to be
long to the union of their particular
trade.
That is all right; but there is
another side to the same question.
The Co-operators with equal justice
should remember that, where there
is a co-operative store, the trade
unionists should not buy at the pri
vate-profit store. If co-operative
employees must join the union, then
unionists must join the co-operative
society. Let us play the game on
the level.
The first National Congress of the
Workingmen's Co-operative Society
of Spain has just been held at Ma
drid. The Spaniards are thinking
about these matters, too. This con
gress agreed that co-operative so
cieties should employ none but
trade unionists, but they reserve the
right to withdraw the advantages
granted to their employees if their
unions do not exact the same ad
vantages from private employees.
This means that trade union labor
shall not demand from the co-oper
ative society what it cannot get
from the private-profit making em
ployer. This is just plain common
sense. They also agreed that strikes
shall not affect co-operative socie
ties, but that all differences must
be submitted to arbitration com
mittees, whose decisions are bind
ing.
This mutual arrangement will
have the effect of insuring that the
workers in the co-operatives shall
enjoy as good conditions as are pre
vailing anywhere else, while at the
same time it guarantees the co
operatives against demands which
the general conditions of the indus
tries make it impossible to meet.
ACCESSORY CO-OPERATION
Our American co-operative socie
ties have been proven to stick to a
standard line of business. There are
a few exceptions. At the First Co
operative Congress in Springfield in
1918, the Danville, Illinois, society
reported contracts with some ten dif
ferent industries to give a discount
to the members of the society of from
ten to fifteen per cent. This arrange
ment included, the dentist, florist, un
dertaker, furniture dealer, laundry,
and tailor.
But beyond this sort of accessory
business we find that societies may
undertake the rental of utensils which
are so rarely needed that most fam
ilies can not afford to own them.
Some of the British societies keep
on hand nursing accessories which
are rented to members at a very low
price. These include such articles as
bed pans, fountain syringes, invalids'
chairs, crutches, hot water bottles,
ice bags, and thermometers. We have
found a number of English societies
that have on hand, for rental to mem
bers, telescopes, microscopes, and
opera glasses.
This is a field of co-operation which
our societies should keep in mind.
Members' meetings should discuss the
things the society may thus carry in
the interest of unsupplied needs.
J. P. W.
CO-OPERATION 41
EUROPEAN IMPRESSIONS
CO-OPERATION IN ENGLAND AND WALES
The Co-operative Movement really
did begin in Great Britain. Nobody
knows when. Everybody knows that
that was a good place for it to be
gin. The people had suffered from
the tyranny of the nobility for cen
turies—a tyranny that destroyed in
fants, the aged and the infirm with
the same ruthless brutality as it de
stroyed the strong men and women.
It was not many years ago that the
nobles had their own private gal
lowses and prisons for unruly work
ers. Then came the industrial era,
and the people who owned nothing
but their labor-power came under the
domination of an equally cruel system
at the hands of the owners of the ma
chinery of production. But there is
something in the human heart that
prompts men to struggle on, to hun
ger for justice, to want better life
and life in greater abundance. Serf
dom is not natural. Back through all
the ages men have struggled for lib
erty. They did it in Great Britain,
and the Co-operative Movement is a
result of this struggle.
The suffering people of Great Brit
ain meditated day and night over the
problem: how to procure the bare es
sentials of life when the largest
wages that could be earned by the
most arduous toil were not sufficient
to provide these essentials. In the
early part of the last century it was
a crime, punishable by deportation,
to combine to try to get more wages.
But when the workers got more
wages they found that they were pay
ing it themselves in the increase in
the cost of living. These stubborn
facts gave rise to the Co-operative
Movement. We know that the Fen-
wick Weavers Society existed in 1769
and the Govan Victualling Society
was established in 1777. Then came
the Bridgeton Victualling Society in
1800 which is still in existence. In
1812 the Lennoxtown Friendly Vic
By J. P. WARBASSE
tualling Society was formed and still
exists. All of these societies were
near Glasgow, Scotland. In that same
district between 1800 and 1815 a
number of co-operative bakeries were
organized. Following these, sporadic
societies began to spring up in other
industrial centers. The Larkhill Vic
tualling Society, Scotland, organized
in 1821 and still flourishing, was one
of these.
In the course of time, the weavers
of Rochdale, England, knowing of the
success of co-operative societies in
Scotland, started their society in
1844. They took the good principles
which time had proved and formu
lated the methods which best made
for success. They did not originate
the Movement but they standardized
it, and as a result of their standard
ization it has gone on to spread out
over the world. But if we seek a
Garden of Eden from which sprang
the race of Co-operators, history
must turn back to the Glasgow dis
trict of Scotland.
London is now the business center
of the world; and in London one finds
the headquarters of the Internation
al Co-operative Alliance. The Brit-
tish Co-operative Union also has an
office in London. The British Co
operative Wholesale Society has
there one of its great centers of busi
ness and production. The offices and
warehouses on Leman Street, the
flour mill, soap factory, preserve and
other productive works at Silverton
seem like old and permanently fixed
enterprises. These are the huge ex
pressions of Co-operation.
London has several distributive so
cieties. The total membership of the
three big consumers societies is close
to 300,000. It is no longer true that
Co-operation can not thrive in a big
city. Information concerning the
Royal Arsenal Society of Woolwich
was published in the February num-

42 CO-OPERATION
ber of CO-OPERATION by its first Sec
retary, W. Rose, now living in the
United States. In September last, in
company with two of the directors,
we drove around in the society's auto
mobile and visited its various prem
ises. It is in the poorest section of
London, surely the most unbeautiful,
but it is showing the people the way
to economic independence. Its stores
are clean and attractive. Among its
industries are a bakery, jam and pre
serve factory and a creamery which
distributes milk to the members. It
does a large banking business. It
sells practically everything its mem
bers use. It owns many dwelling
houses, a twenty acre recreation park
and a country house with twenty
more acres of land about it. This lat
ter very beautiful estate is used as a
vacation place for the members.
This society has a paid full-time edu
cational director and appropriates
$20,000 a year to co-operative educa
tion. When we were in Holland we
met fifty of their members making a
study tour of that country. Next
summer a party of their members
are going to Germany. As the two
directors, who had gone about with
us, drove away in the limousine
owned by the society, it was most
comforting to know that these men
from the ranks of labor now were in
a position to enjoy the comforts of
the rich by virtue of having given
the best of their lives to their co
operative society.
We visited Letchworth village and
Welwyn. These are building enter
prises of large possibilities but not
purely co-operative as are the build
ing societies in Germany. England
is backward in the field of real co
operative housing.
In order to see a smaller co-opera
tive comunity we went to Desborough,
a town of 4,000 population (about
1,000 families). The membership of
the co-operative society is 2,200.
About 900 of the members are em
ployed in the co-operative industries.
The society has stores; a bakery; milk
distribution; coal distribution; a farm
of 4,000 acres which produces vegeta
bles, poultry, fruit, wood, eggs, butter
and meat. It owns also an iron mine,
employing 120 of its members. It has
developed housing until practically
every member lives in his own house.
Its meeting hall is the common meet
ing room of the town. Desborough
has also a corset factory of the Co
operative Wholesale Society and a
producers' -shoe factory. The vast
majority of people work, spend and
live in a co-operative society. In 1914
the society bought outright-the neigh
boring village of Harrington—'lands,
houses, everything, including the
church and living and the right to
dictate the particular theology that
should be preached. Private business
in Desborough plays a small role.
Then we went to Kittering which
has 30,000 population (7,000 fam
ilies), and a co-operative society
with 12,500 members. The reason for
the large membership of this society
is that some families have several
members. The law in Great Britain
permits a member to have not more
than $1,000 (200 pounds) in a co
operative society. The members like
to leave their dividends in the society;
when a member's dividends bring his
capital up to $1,000, he has his wife
join; and when she has $1,000 to her
credit, then they begin to have the
children join. Still this does not ab
sorb all of the money at Kittering so
they started a "Penny Bank." The
law permits children or any one to
deposit in this up to $100 (20
pounds. Some families have every
member of the family in this bank.
Some are made members the day they
are born. This bank has 10,000 de
positors. When they get to be six
teen years old they may join the so
ciety and put in $1,000. Thus the
bank supplies the society with funds
and the society members have a place
to deposit their surplus in the names
of their children. The bank pays 4
per cent interest; but many people
draw their money out of the com
mercial savings bank which pays 5
per cent to put it in the co-operative
bank.
This Kittering society does a yearly
business of $5,000,000 and has paid a
10 per cent dividend regularly for 30
years. Its share capital amounts to
$2,000,000. It has $1,000,000 invest
ed in the C. W. S. In 1901 the society
paid $50,000 for a tract of land and
built 180 houses. Since that, it has
continued to maintain a building de
partment and has in constant employ
70 building workers. These men are
required for repair work, remodelling
and new construction among its
many buildings. New members are
joining at the rate of 1,000 a year. It
owns a farm of 78 acres. It kills its
own meat in its own slaughter house.
Its educational committee has some
educational function every two weeks.
Its bakery produces most of the bread
in the town. So substantial is the
surplus of the society that the officers
rejoice in the fact that the members
have drawn out $500,000 in cash dur
ing the past year on account of hard
times and unemployment without
jeopardizing the society. It shows
that the members have put in money
against a rainy day and when the
rainy day comes the money is there to
serve them.
I have cited these last two societies
because they show what is going on
in Great Britain—the steady en
croachment of Co-operation upon the
field of private business and the
steady increase in co-operative activi
ties in the lives of the people. Long
Buckby and many other societies re
present the major portion of the pop
ulation of their communitieiS. In some
parts of Belgium they speak of the
point of "co-operative saturation" as
having been reached, but this point
has not yet been reached in any part
of Great Britain.
Leaving Kittering, we went to Man
chester, "the cradle of Co-operation."
The British Co-operative Wholesale
Society is the biggest thing in Man
chester. As a matter of fact, it is the
most important business in the Brit
ish Empire. It is the greatest thing
Co-operation has produced. Its
blocks of buildings in the Balloon St.
district are at least imposing. The to
CO-OPERATION 43
bacco works in Manchester, the flour
mills on the ship canal, the .soap
works and factory at Irlam, the bis
cuit and confectionery factories at
Crumpsall, the preserve works at
Middleton, which we visited, all tes
tify to the ability of the British Co-
operators to do things on a big scale.
Britain is dotted with the factories
and warehouses of the C. W. S. which
produce most everything from candy
to automobiles. But one criticism can
be offered: it needs younger blood.
Younger men would be prone to visit
other factories in other countries and
discover and adopt new and up-to-
date methods. The C. W. S. is suffer
ing from the disadvantage of having
attained to a success which satisfies
the majority of its directors. Yet
any criticism of this institution must
yield to the fact that it is the most
important and the most successful
commercial enterprise in the world.
It is the organization around which
revolves the best hopes of the work
ing millions of Great Britain.
We visited also the works of the
Co-operative Printing Society, the C.
W. S. printing house, and the offices
of the National Union of Distributive
and Allied Workers.
Near the Balloon Street center is
Holyoke House, the educational cen
ter of Great Britain. Here is a beau
tiful building which stands apart like
a shining star in the darkness. Man
chester is dirty, gloomy and unbeau
tiful. The people live mostly in the
presence of architectural ugliness.
Poverty and squalor are conspicuous.
The wonder is that so many men and
women of high ideals and love of
beauty grow up in such an atmo
sphere. It is a testimony to the ster
ling and inherent virtue of the Brit
ish character. Here stands Holyoke
House, the headquarters of the Brit
ish Co-operative Union, like a rich
diadem shedding its radiance abroad
not only throughout Britain but to
every corner of the world. Here are
the headquarters of the educational
department, the co-operative school
movement, the library and the publi
cations. Would that The Co-operative

44 CO-OPERATION
League in the United States might
have such a home as this. Some day
we shall. Education is worthy of it.
Across the desolate waste, known
as the Lancashire mill district, we
motored in a C. W. S. automobile to
Rochdale. The original Toadlane
store of the Pioneers is occupied by
a bird merchant who sells canary
birds and other captive creatures. He
told me that the spirit of the pioneers
was gone and had been supplanted by
the "dividend hunters." However,
the old society still thrives. It has
26,000 members and is the biggest
business in Rochdale—$5,000,000 a
year. Another society has 15,000.
These two societies should be united
in one; that would give a membership
of 33,000, a larger number than Roch
dale has families. The society should
buy the old Toad Lane building; if it
does not, then the British Union or
the Wholesale should. The bird deal
er is a profanity of a sacred temple.
The Cardiff Co-operative Society
which we visited is the same sound
organization as is to be found in other
British cities. The best and biggest
stores, good goods, and a steadily in
creasing membership are the char
acteristics. This society is under the
wing of the C. W. S. which has in
Cardiff a great warehouse and office
building which is by far the finest
commercial building in Wales. It was
built too big, in order to provide for
future expansion; but now it is too
crowded, and the C. W. S. is planning
an addition on its adjacent grounds.
At the British Trade Union Congress
which we attended in Cardiff, Co
operation occupied a considerable part
of the agenda. I talked with some of
the labor leaders, all of whom are
keenly interested in our American
problems. Robert Smilie showed a
remarkable and sympathetic knowl
edge and interest in our Co-opera
tive Movement among the mine
workers.
At Southampton, we visited the
Southampton Society. It has good
stores and a live educational com
mittee. This was the second time in
ten years that American Co-operators
had called at the office of the society.
Some years ago two Americans had
called who were organizing "co-opera
tive" stores in the United States, un
der a plan whereby the profits of the
business went to the two organizers.
This is the far famed "American me
thod."
It was most gratifying to find that
in England the work of The Co-opera
tive League had made the British
Co-operators acquainted with the
American Movement. The British
leaders have a pretty clear idea of our
problems, our accomplishments and
our deficiencies; and they stand ready
to give us every assistance in their
power.
CATHOLICS AND THE CO-OPERATIVE
MOVEMENT
By R. A. McGOWAN
National Catholic Welfare Council, Washington, D. C.
The Co-operative Movement is di
vided in continental Europe, and the
chief division is between Catholic and
non-Catholic associations and federa
tions. This is true also of labor un
ions and even of political parties. Re
gardless of opinions about the reasons
offered for such a division abroad, it
is agreed on all sides in the United
States that it would be a calamity for
any such situation to arise here. Nei
ther the Co-operative Movement nor
the labor union movement is divided
on religious grounds and it is to be
hoped that no such division becomes
necessary. The place of the Catholic
Co-operator in the United States is in
the existing organizations, working
as best he can to make them success
ful, and trying as best he can to get
others to join the Movement.
It would be a mistake, however, to
think that there are not good reasons
for the establishment of separate
CO-OPERATION
Catholic co-operative societies and sumers' Co-operative Movement, he
federations in continental Europe. favors other sorts of Co-operation too.
Thus far from the scene it is hard for Where the Movement is burdened
us to grasp the reasons and equally with Socialist propaganda, it is
hard, at times, to see their import normal to expect Catholics to form
ance. But the reasons stand and are their own co-operative societies and
of such weight as to compel adher federations, even though they favor
ence among Catholics in several of the basic principles of such existing
the continental countries.
organizations as the Rochdale con
One reason of grave importance is
sumers' societies.
that many of the co-operative socie There is another reason which nonties
of Europe have been started or Catholics sometimes find hard to un
are used as adjuncts of the socialist derstand. This is the importance of
parties, and are employed for social religious motives, and religious prin
ist propaganda. Since Catholics are ciples of justice and brotherly love.
opposed to Socialism, they have been The economics of the Middle Ages are
compelled to start co-operative socie a case in point. The guild system was
ties of their own if they wished to permeated with religion—not merely
join at all in the Co-operative Move with religious observances, but with
ment. The same influence has af religious principles of buying and
fected the labor union movement, and selling and working. Interest-taking
has brought about the establishment was forbidden on grounds of re
of Catholic labor unions.
ligion. The idea of the "just price"
was a religious teaching. And the
There is another reason which "just price" was based on the further
brings us farther afield. A large
number of European Co-operators
religious right of a workingman to a
living wage. There are religious
hold Co-operation to be strictly a con teachings about economic relations
sumers' movement. They either be today. The Pastoral Letter of the
lieve solely in the consumers' Co-op American Hierarchy to Catholics in
erative Movement or, as Socialists this country has a section on indus
with the Socialist desire for common trial relations. The Bishops' Pro
ownership, they favor a subsidiary gram of Social Reconstruction is an
consumers' Co-operative Movement. attempt to apply principles and rules
Socialist believers in consumers' co of justice and brotherly love to in
operative societies are opposed to dustrial life. It therefore becomes
much of an extension of co-operative natural for Catholics to start their
producers' societies and are certainly own co-operative organizations and
opposed to any emphasis being laid federations, especially when they are
upon co-operative production. The urged on by other reasons.
Catholic Co-operator does not limit
Co-operation. He favors consumers' Recognizing all this, it still is true
Co-operation. He favors labor Co-op that in the United States the only
eration. He has even developed in thing for Catholic Co-operators to do
great detail a method of establish is to join whole-heartedly with the
ing co-operative production in place existing Co-operative Movement. The
of capitalist production in the fac American Movement is not an ad
tories. When he finds government junct of Socialism, nor are American
ownership necessary, he searches for co-operative societies' propaganda
methods of applying democratic man branches for the Socialist common
agement and a partial division of the wealth. The Bishop's Program of
returns of the government-owned Social Reconstruction specifically rec
concern among those at work in it. ommends co-operative societies. Just
As a Co-operator he is an eclectic. The as Catholics join the labor unions, so
guilds of the Middle Ages keep haunt too they join the existing co-operative
ing him.
societies.
And so, while he favors the con- A Catholic ought to make a good
45

46 CO-OPERATION
Co-operator. He is of course subject
to the vagaries of the times just as
others, and some Catholics have an
additional heritage of political and
social persecution which sometimes
makes co-operative action among
them quite difficult. The Co-operative
Movements stresses brotherhood and
yet retains the strength of the indi
vidual as the means of obtaining jus
tice and a sound economic life. Co
operative societies correspond more
closely to Catholic principles than any
other economic system. In joining
the Co-operative Movement and in
working for its success, a Catholic is
working to help build up an economic
system in which justice and charity
will have a better chance to express
themselves.
THE SITUATION IN RUSSIA
All reports that are available on
the present condition of Co-operatives
in Russia would indicate that the
State has ceased to directly control
or interfere with the affairs of the
Co-operatives.
According to Mr. A. M. Lejava, a
member of the Board of "Centro-
soyus" at Moscow, "Under the new
economic policy freedom has been
restored to the Co-operatives, and
they have been entrusted by the State
with the exchange of commodities be
tween town and country and between
the various parts of Russia. The Gov
ernment at the same time decided to
invite their active participation in the
foreign trade of the country. Every
individual at present is free to become
or not to become a member of a co
operative society. The conditions of
membership, shareholding, etc., are
fixed by the societies autonomously.
The fact is, however, that practically
all those who were brought into the
societies under the compulsory decree
now prefer to remain in the societies."
The State Decree of April 7, 1921,
authorized the Co-operatives to freely
exchange goods, to buy up agricultur
al and manufactured products for
purposes of exchange. In that decree
the State expressly reserved the right
to appoint its own representatives on
the board of consumers' societies,
such representatives to have rights
equal to those of the members elected
by the societies. Mr. Lejava states,
that: "In practice, however, the Gov
ernment is not availing itself even of
this limited right. There are no Gov
ernment nominees on the Board of
Centrosoyus, the whole of which is
freely elected."
The industries and enterprises
formerly controlled by the Co-opera
tives have been returned to them by
the Government, which has also
leased many enterprises formerly
privately owned, to the Co-operatives.
The Government prefers to grant con
cessions or leases to the Co-opera
tives, rather than to private firms.
Co-operatives are permitted the un
restricted use of their own funds, and
of those granted them by the Gov
ernment. State subsidies have been
given to needy societies. The only
restriction is that they are obliged to
report the expenditure of the funds.
Co-operatives are free to finance
themselves through the sale of
shares.
It is estimated that Centrosoyus
distributed amongst the population
during 1921 goods to the value of
$150,960,000, at the present rate of
exchange.
The greatest amount of freedom is
enjoyed by the "Kustars," or Russian
peasant co-operative industries.
In short, the Government has
abandoned its policy of national own
ership and rigid control of the in
dustries, and is now relying upon the
voluntary efforts of consumers,
through their co-operative societies,
to conduct the industries and to
carry on domestic and foreign ex
change.
ADVICE ,ON STORE MANAGE
MENT
The Successful Manager
A good store manager must be able
to do any part of the necessary store
work. He should be agreeable to
others and a good salesman. He must
be honest, energetic, sincere and ef
ficient. A knowledge of the business
from the ground up is needed for
best results. It is often found, how
ever, that an earnest Co-operator pos
sessing all other needed qualities soon
acquires experience by hard work and
study, under a competent, successful
co-operative store manager which fits
him for a position in charge of a
store.
An efficient manager should do the
following:
1. Systematize his work, and see
that it is fairly divided among the
employees, and that all are kept busy,
but not rushed.
2. Buy sparingly and turn stock
often. If he finds he has an over
stock, he must lose no time in putting
on special sales.
3. Know the quality of the goods,
and not hesitate when asked to recom
mend an article; but he should be hon
est in his replies.
4. Not do routine work during rush
hours. He should be where the cus
tomers can see him.
5. Watch unceasingly for leaks.
What a Manager should be:
Prompt, cautious, bold, enthusi
astic, determined.
He should take orders from the di
rectors at the Board meeting. In the
store, the manager should be the boss,
and officers of the society should not
dictate to him or to the clerks. This
should be understood from the be
ginning.
The Kind of Clerks that Help Co-operation
It is unwise to have too many clerks.
If there is not enough work to keep
them busy they are apt to lose inter
est. On the other hand clerks are
human and should not be expected to
CO-OPERATION 47
PRACTICAL PROBLEMS
work on a tension, or when they are
ill. In starting a new clerk at work,
give him average work, not the hard
est, disagreeable jobs; and help him
all you can. Cheap help is in the long
run expensive. Do not show favorit
ism, but have a general policy for all.
Do not hire relatives. Be cautious
about hiring relatives of officers of
the society.
Praise your clerks for all they do
well. Pass easily over faults, for
while criticism is necessary, habitual
fault-finding makes a manager a nag,
and good work can never be expected.
Do not eternally watch or show sus
picion. It is better to be frank. Be
sensible in giving instruction. Give
concrete examples of what a clerk is
expected to do.
Do not treat clerks as private busi
ness treats them. Give them respon
sibility. Put one in charge of fruit
and vegetable department, one in
complete charge of store-room, etc.,
and let them make this work effective.
Insist on neatness. One slovenly
clerk can wreck a store.
See that clerks utilize slack hours
of the day by filling and straightening
shelves, doing up loose sugar, tea,
flour, etc., in packages, tidying up the
store, etc.
Pay wages fully as high as private
stores pay. Do not exceed legal
limitation on number of hours per
week for women workers. One good,
efficient woman in a co-operative
store is an asset. Train her to be
friendly to the women, and to attend
the meetings of the Women's Guild.
Do not hire a new clerk until you
know his past record.
There should be formed an employ
ees' association. Clerks should be
urged to join the union. They should
know the conditions and aims of the
store, and be expected to understand
the co-operative principles thor
oughly. They should be required to
read certain co-operative literature,
and attend educational meetings of
the society.

48 CO-OPERATION
OVERSTOCKING
The following excellent advice on
"overstocking" is from the Nebraska
Union Farmer, of January 22:
Overstocking with goods has been one of
the factors in causing many of our co
operative stores, and elevator companies
engaged in merchandising, to be short of
operating capital. The other day a mem
ber of the Farmers Union told us of the
financial difficulties of the farmers' co-op
erative store in their little village of a
few score souls. A recent inventory showed
a grocery stock amounting to $18,000!
This farmer said he was curious to know
what size of stock a grocery store should
carry. Having occasion to visit the capital
city, he inquired of a Lincoln grocer who
does a business of about $100,000 a year
what his average inventory was. The gro
cer replied that he did not allow his stock
to go above $8,000. Our friend was as
tounded to learn that their co-operative
store was carrying a stock of groceries
more than twice as large as a city grocery
serving several times as many patrons.
A few days afterward we asked the
manager of what is perhaps the most pros
perous Farmers' Union store in Nebraska
what size of grocery stock they carried, and
he replied that they kept it down to $5,000
and had everything they needed. Our
Farmers Union auditors tell us that some
of our stores hold their grocery stock down
to $3,000.
Of course, overstocking is not the only
cause of capital shortage. Some of our
associations did not have sufficient capital
to begin with, or invested too much in
buildings and equipment. Not a few have
extended too much credit. But in many
cases shortage of capital is due to loading
up too heavily with goods.
THE FATE OF READERS OF
"CO-OPERATION"
As representatives of the The
League go about over the country
there is one fact that they discover
everywhere. The people who rise to
the important positions in the Co-op-
perative Movement are the readers of
the magazine CO-OPERATION. When a
person goes into a town and looks
about, he finds that certain people
regularly read this magazine. In the
course of time if one visits the same
town again he will find that the people
who are guiding and furnishing the
inspiration and sound leadership for
the co-operative society are the read
ers of CO-OPERATION, and these same
people are the ones who make the
best material for directors and man
agers. We are calling attention to
this because we have recently had
brought to our attention several in
stances in which the best and most
successful store managers were found
among men with this cultural co-op
erative background.
TRAINING MANAGERS
The Executive Board of the League
insists that the League's System of
Store Accounting be used in every co
operative store. We discover that it
not only protects the members and
the manager but it trains a Control
Committee in store management. We
have on record multiplying instances
in which members of the Control
Committee have been able to step in
on a moment's notice and take the
place of the manager when something
happened to him. The latest testi
mony to this value of the Accounting
System is from Tucumcari, Texas:
The Board decided to allow me to train
a member of the Control Committee to
take my place as manager. He has been
on this committee since my arrival here
last August, and the experience gained in
that work has been so valuable to him that
the rest is in a measure easy.
A. W. WARINNER,
Manager.
Tucumacari Merc. Co-op. Co.
Mr. Warinner has become an en
thusiastic advocate of the Accounting
System. He saved the Tucumari So
ciety store with its aid, and now it
provides a manager.
SEEDS FOR RUSSIA
A member of The League, Mrs.
Mary Mardfin, is now in Russia for
the purpose of distributing seeds in
the farming districts that are suffer
ing not only from a lack of food, but
from the want of seeds to plant for
the next harvest. Those of our read
ers who are in a position to help are
urged to forward free seeds for dis
tribution by Mrs. Mardfin. Seeds
and communications should be ad
dressed to her at Sergei Victorovitch,
Terskoy, Ryazan District, Russia; or
to The League. I
CREAMERY SETS STANDARDS
The Franklin Co-operative Cream
ery Association of Minneapolis has
just issued a Year Book containing a
remarkable financial report. Though
the co-operative creamery began busi
ness late in March, 1921, their gross
sales of milk, butter, cream and other
dairy products for nine months
amounted to $844,063. The monthly
sales are now $110,000.
The net surplus-saving for the nine
months of operation was $37,539. It
should be remembered that hundreds
of thousands of dollars in addition
were saved to the consumers of Min
neapolis, for the co-operative dairy is
setting a severe pace for the private
dealers, who have been forced to re
duce the price of milk three cents a
quart. A cent on every quart of
milk has amounted, during the year,
to over half a million dollars for the
consumers of that city.
Since the co-operative began doing
business the quality of dairy products
sold in Minneapolis has improved con
siderably. Here is the milk report
of the Minneapolis Health Depart
ment:
Average bacteria Jan.-June, 1920,
56,674.
Average bacteria Jan.-June, 1921,
21,560
Average per cent butter fat Jan.-
June, 1920, 3.58.
Average per cent butter fat Jan.-
June, 1921, 3.69.
This means less water, more nour
ishment, and less dirt. The import
ance to the people of this gain is in
calculable. It means less sickness.
The building of the co-operative is
completely paid for; small balances
remain unpaid on the machinery and
equipment. Seventy routes are now
operated, as against eighteen when
the dairy was opened for business. In
spite of the general wage cuts in the
private dairies in Minneapolis, no re
duction has been made in the pay of
the workers in the co-operative, and
none is contemplated.
CO-OPERATION 49 1
NEWS AND COMMENT
Enthusiastic and constant educa
tional work is carried on by the mem
bers. This is not a producer's enter
prise run for the profit of the milk
distributors; but it is a consumers'
dairy run not for profit but for the
service of all the citizens who choose
to become members.
RE-ORGANIZATION OF UNITED
CO-OPERATIVE SOCIETY
In the fall of 1919 a group of inde
pendent Finnish societies, stores,
bakeries and consumers milk distri
buting societies in Eastern Massa
chusetts amalgamated into a central
organization—The United Co-opera
tive Society. Each society lost its
identity and became a branch of the
centralized plan. A few new branches
were established. They pooled their
capital and their management. All
the buying of goods, the bookkeeping
and the financing was done by the
central office at Boston. It also em
ployed the managers, bought and sold
property and equipment as well as
carried on the education and propa
ganda connected with all the societies.
After two years, however, in the
spring of 1921, at the annual meet
ing the society voted to reorganize.
The centralized plan of chain stores
was given up and each society again
became independent.
This change of program was not
due to any financial difficulties of the
organization. The amount of capital
originally subscribed by the societies
was $56,720. At the time of reor
ganization the capitalization was $84,-
256. Its assets were $247,275. Its
liabilities were $163,018. So it can
be seen clearly that reorganization
was not necessitated because of in
efficiency. The members simply vot
ed to return to the former method of
local autonomy and independent man
agement because they felt that by so
doing the members could and would
more fully and democratically take
their part in each society's affairs.
The separate societies agreed to
buy goods together in the future until

50 CO-OPERATION
a real New England Wholesale feder
ation should be formed.
The method of distribution of the
centralized capital was to return to
each local society the amount of capi
tal subscribed by the members of that
locality, as new capital for their in
dependent store. The new society is
sued certificates to their members in
place of the original certificates of
share capital subscribed to the United
Co-operative Society. $1,800 sub
scribed as capital by members of
those localities in which societies no
longer exist still remains in the
treasury undistributed.
Thus ends another chapter in the
attempt to organize and operate co
operative chain stores.
In the United States this experi
ment of chain store co-operatives
both fictitious and bona fide has now
been given a pretty thorough trial.
If any group could have succeeded
with the method of centralization it
would have been the Finnish Co-
operators. They had a competent
manager and an honest organization.
Except for political differences they
are united and harmonious.
Adolph Wirkiela, who was in
charge of the technical administra
tion of the United Co-operative So
ciety, the accounting and bookkeep
ing, in commenting on the situation
states that:
"At the meeting of the Society it
was not consciously realized by all the
members that reorganization was
necessary because of the need of local
autonomy, but they did understand
that separation was necessary. Dis
satisfaction in the running of the So
ciety was the chief cause for such
a thought. The logical consequence
of trying to realize an impossibility
was not theoretically understood. It
was a fact that under centralization
the members of the branches were
less interested in the Movement than
they were as members of local so
cieties, and the stores suffered to an
extent to which centralized efficiency
could not compensate. Nevertheless
certain factors did not want to re
cognize this fact."
Waldemar Niemela the manager
comments as follows:
"As machinery for distribution of
food supplies the chain stores plan,
operating in a limited district, is
much more efficient than the inde
pendent stores, if it is well organized,
financed and supported."
CONVENTION OF THE FARMERS'
UNION OF NEBRASKA
Over 600 delegates met at Omaha
on January 10th, llth and 12th, 1922,
at the Ninth Annual Convention of
the Farmers' Union. The crowded
sessions were filled with spirited dis
cussions and sharp conflict of opinion
at times. However, the general out
come was most satisfactory and car
ried with it a final feeling of good
will and a pledge for further loyal
Co-operation in the future.
Most of the resolutions naturally
had to do with the conduct of the
Farmers' Union marketing associa
tions. The election of officers was a
feature of the program. C. J. Osborn
was elected president. The important
resolution were those authorizing the
organization of a Farmers' Union loan
company, a Farmers' Union hail in
surance company, and additional
Farmers' Union creameries.
Of particular interest to Co-opera
tors was the discussion centering
around the year's operation of The
Farmers' Union State Exchange at
Omaha. Frank Meyers, its manager,
reported that the State Exchange had
been organized by the Union on No
vember 28th, 1918. In 1919 it sold
$400,000 worth of stock under the
jurisdiction of the State Union Board.
Mr. Meyers reported that the Ex
change had been operated with the
best interest of the Farmers' Union
membership in mind. In 1918 and
1919 the Exchange had made money.
Farmers' products were sold at peak
prices and profits were skimmed off
without difficulty. In 1920, however,
when the slump began, the Exchange
closed a year with with a loss of
$109,000. In December, 1921, the
loss for that year was $182,053.
Farmers were not buying; and, de
spite all efforts to reduce stock and
overhead, the best /fealepmen could
not, without loss, dispose of the large
stock which the Exchange had on
hand. The report showed that the
present worth of the Exchange is
$400,000. A vote was taken which
placed the further administration of
the financial difficulties in the hands
of a committee composed of the
boards of the State Exchange and the
State Union, with power to act. The
State Union occupies a building, the
lease of which costs $3,000 a month.
The closing sessions expressed the
feeling that if the members through
out the state gave their loyal patron
age, the officers had full faith in the
satisfactory outcome of the present
crisis.
The Farmers' Union is carrying on
for the farmers the same educational
work that The Co-operative League
is performing for the consumers in
general. In Nebraska, as in some
twenty other states, the Farmers'
Union is the best hope of Co-operation
among the rural population.
SOME ILLINOIS REPORTS
The past year was the most suc
cessful period in the history of the
Bloomington Co-operative Society.
Even though Bloomington was hit
hard by the industrial depression, and
though many promoters of the fake
"Co-operative Society of America"
tried to muddy the clear waters of Co
operation, the energetic Co-operators
made steady progress. A business of
$161,000 was done during 1921,
which is larger than ever before. It
was decided by the membership to
distribute 4 per cent savings-returns
and a considerable sum remains to be
placed in the reserve fund. The
Bloomington Co-operative Society is
affiliated with The League and with
the Central States Co-operative
Wholesale Society.
The Villa Grove Co-operative So
ciety held its thirteenth quarterly
CO-OPERATION 51
meeting of stockholders January 18,"
1921. There were 374 tickets given
out at the door to men, women and
children. Every one entering being
given a ticket. Ninety memberships
were represented at this meeting.
Certain tickets draw prizes. The hold
ers of the winning tickets drew prizes
as follows: a ham, 25 Ib. sugar, 25
Ib. flour, quart bottle grape juice, %
gallon bottle of cider, 2 cans pork and
beans, % Ib. tin of tobacco and a pipe.
The last four prizes were given by of
ficers of the Society.
Officers were elected. Dr. J. H.
Greene gave an interesting address on
the control of industry by the work
ers. An, orchestra furnished music.
A program of vocal and instrumental
music and selected reading was pro
vided. After the meeting and enter
tainment a lunch was served consist
ing of baked ham, roast pork, roast
beef, boiled ham, pickles, doughnuts,
cakes and coffee.
THE WORKINGMAN'S COMPANY
OF CLEVELAND
The Workingmen's Co-operative
Company of Cleveland, Ohio, which
operates six stores, has a fine record
to point to for 1921. The sales for
the year amounted to almost a
quarter of a million dollars—to be ex
act, $234,620. Of this sum, the
net surplus-savings came to $6,383,
which was distributed to the member
ship in the form of savings-returns
of 3J/2 per cent, on purchases, and
3 per cent, interest on share capital.
The society has a good reserve fund.
The membership of one thousand,
consists of Czecho-Slovak workers.
The educational side of Co-operation
is not neglected. On January 29th
a general meeting was held at which
five hundred people were present.
Lantern slides were shown, and there
were talks on the Co-operative Move
ment.

52 CO-OPERATION
THE PRODUCERS' AND CONSUM
ERS' BANK OF PHILADELPHIA
The Producers' and Consumers'
Bank of Philadelphia opened its doors
for business on the first of February,
organized under a deed of trust.
It is called "a co-operative bank";
but to call any deed of trust "co-oper
ative" is misleading, for a deed of
trust violates fundamental co-opera
tive principles. In the first place,
shares vote instead of men. One vote
for each member, irrespective of the
number of shares held, is the only
co-operative method. Secondly, it al
lows proxy voting, which is not al
lowed in the administration of truly
co-operative societies. Thirdly, there
is no specific use of the surplus indi
cated in the by-laws. Co-operative
by-laws, as well as state banking laws,
definitely state the use that must be
made of the surplus. Fourthly, un
der the deed of trust all power is
placed in the hands of the trustees.
This is neither democratic, sound, nor
co-operative. The deed of trust has
been made use of by spurious co
operative organization, such as the
"Co-operative Society of America"
but it has never been used by a true
co-operative organization.
For over a year, The Co-operative
League has advised the trustees
against the deed of trust method and
has suggested safer forms of organi
zation. Dr. Walter McCaleb, of the
Engineers' Bank of Cleveland, and Dr.
Frederic C. Howe have taken the
same interest, and have advised
against the deed of trust. These two
experts and The League advised that
the bank be incorporated as a state
bank or trust company under the
banking laws.
On February 8th, The League
learned the good news that the Sec
retary of the Commonwealth of Penn
sylvania had received the application
for the incorporation of the Producers
and Consumers Bank as a trust com
pany. This is a well tested method
of organization and puts the bank
under the supervision of the state
banking laws. Although the bank,
even under the Pennsylvania banking
laws, can not be fully co-operative,
it may become a Labor Bank, serving
the working people and controlled by
them.
We earnestly hope that the reor
ganization from a deed of trust to a
trust company bank will be speedily
accomplished and that the working
people will realize their responsibility,
will exercise their control over this
bank, will employ proper banking ex
perts to run it efficiently, and will
make this Labor, Bank a great suc
cess.
CONVENTION OF NORTHERN
STATES
A call has been sent out by the
Co-operative Central Exchange of
Superior, Wisconsin, and the Union
Consumers' Society of Duluth, Min
nesota, to all of the societies of north
ern Minnesota, Wisconsin and Michi
gan to send delegates to a conference
of co-operative societies to be held in
the Co-operative Central Exchange
Building, at Superior, on March 18,
at 10 A. M. The object of the con
ference is to consider:
(1) The formation of a district
league.
(2) The best methods of spreading
knowledge of Co-operation and carry
ing on education within the district.
(3) The question of introducing a
uniform system of accounting among
the societies of the district.
(4) The question of training em
ployees for co-operative stores.
(5) The possibilities of joint buy
ing among the societies of the pro
posed district.
It is requested that societies send
ing delegates to the conference should
notify Mr. John Schottes, Secretary,
Union Consumers' Co-operative So
ciety, 1911 W. Superior St., Duluth,
Minnesota.
The Co-operative League advises
the societies to be represented at this
conference. A large attendance and
a successful meeting should be ex
pected.
OUR CAFETERIA INVADES
WALL STREET
The Wall Street financial district
was invaded at the beginning of the
new year by the third branch of "Our
Co-operative Cafeteria," which op
ened at Greenwich and Thames
streets, New York City. Judging by
the fact that the new branch now
serves about 600 people at lunch
every day, and about 75 every eve
ning, the success of this invasion of
the sacred precincts of capital is as
sured. The following figures show
the receipts by weeks since this
branch was opened:
First week ........ .$ 832
Second week ....... 1,577
Third week ........ 2,178
Fourth week ....... 2,702
Fifth week ........ 3,221
Though there has been no con
certed drive for membership thirty-
one applications have been received.
A considerable quantity of literature
on Co-operation is given out at the
cashier's desk every day.
CO-OPERATIVE ELECTRICITY IN
SWITZERLAND AND RUSSIA
Switzerland has a number of co
operative societies which supply their
members with electricity. They put
a wheel in a stream that comes plung
ing down from the mountains. The
wheel runs a dynamo. Lines are car
ried to the members' houses. In this
way, at a very small expense, the
melting snows of the Alps are con
verted by co-operative societies into
light and power to run the sewing
machine and the churn, but best of
all, they are teaching people how to
co-operate. Some of these villages
have jumped from the candle to elec
tric light without passing through the
stage of kerosene lamp and the gas
light.
Now comes the word from Russia
that the Barovich-Valdai Co-opera
tive Society, which covers a large dis
trict, is installing electric light in 250
villages out of 480 villages in the dis
trict. The people can do things for
themselves.
CO-OPERATION 53
AT THE VATICAN
In Italy, a unique co-operative so
ciety is the one that has recently
been organized in the Vatican in
Rome, by the dignitaries of the Cath
olic Church and the Vatican officials.
It has generally been believed that
the Cardinals and other dignitaries
that constitute the administration of
the Catholic Church in Rome enjoyed
salaries that put them beyond the
danger line separating them from
want. But the depreciation of the
currency and the high prices seri
ously effect everybody's purchasing
power. To meet this condition, the
Church executives and their staffs
there have formed a co-operative
consumers' society through which
provisions and other necessities are
purchased at a considerable saving.
FINLAND KEEPS ON THE MOVE
The annual report made by the Finnish
Co-operative Wholesale Society, (S. O. K.)
for 1920 shows progress in spite of the
split in the Finnish Movement and the
difficulties laid in the way of Co-operative
activity by the Government.
The S. O. K. is the wholesale federation
of the "neutral" co-operative societies.
There are now 500 societies connected
with the S. O. K., representing 1,640 stores
and a membership of 181,200. During
1920 the number of stores operated had in
creased by 212, and 8,200 members had
been won to the neutral co-operatives.
The sales of the S. K. O. in 1920
amounted to 324,000,000 Finnish marks,
which represented an increase o_f 57 per
cent over the business of the previous year.
Owing to the inability to procure sufficient
goods to meet the wants of the local stores,
the wholesale was able to furnish only 31
per cent of the goods sold by affiliated co
operatives.
Almost every imaginable variety of in
dustrial activity is carried on by the S. O.
K. It operates a factory for making over
alls and underclothing, a fruit and spice
packing house, a coffee roasting plant and
chicory factory, a shop where bicycles,
motorcycles, automobiles and typewriters
are assembled and repaired, a hosiery fac
tory, biscuit bakery, macaroni factory,
brushworks, berry conserving works, berry
gardens, match factory, flour mill, bag and
envelope mill, confectionery factory, saw
mill, brickworks, and other industrial estab
lishments. It owns its own fleet of vessels.
Recently the S. K. O. branched out into
a savings bank business, which is making
headway. It also maintains an infant
school and supports a fire department.

54 CO-OPERATION
AMERICAN LABOR LEADER
VISITS ITALIAN CO-OPERA
TIVES
I was powerfully impressed by the co
operatives in Italy. I came to Reggio Emi
lia to witness the Congress of the Right
Wing of the Socialist Party held at the city
hall of the town, Reggio Emilia having a
socialist administration. The red flag was
conspicious on the outside of the building
and on the platform in the assembly hall.
Among the delegates to that conference
was Signora Argentina Altobelli, the leader
of the Socialist Argicultural Co-operatives
in Italy. To one familiar with the back
wardness of the Italian women, the fact
of an old lady being the leader of nearly
a million socialist peasant Co-operators was
very striking. Madame Altobelli is a re
markable personality. A woman probably
in the sixties, of medium height, with a
very vivid and sympathetic face. She fol
lowed the proceedings with keen interest
and had definite opinions on all subjects
that came before the congress. She was
against an immediate revolution in Italy,
basing her opposition principally upon the
fact that the socialist peasant co-operative
organization had no mroe than over 800,-
000 members.
On the day after the conference Eman-
uelo Modigliani, at that time chairman of
the socialist delegation in the Italian Par
liament, Gino Baldesi, one of the secre
taries of the General Confederation of La
bor, and a few local comrades, took me to
a socialist peasant co-operative in the
neighborhood. I was told that there were
quite a number of them, but that was only
one of its kind that I had an opportunity
to see. There are 600 peasants attached
to that co-operative. A number of years
ago they bought the estate from a noble
man for whom they were working. By this
time the estate is all or neraly all paid up.
Each member of the co-operative brings all
of his products into the general storehouse.
The goods then become the property of
the co-operative, which markets them. The
co-operative also does all th ebuying for
its members so that all the necessaries of
life are bought at the lowest wholesale
price. The members are charged on the
books of the co-operative with everything
furnished them by the co-operative and
credited with everything furnished by them
to the co-operative. Out of the proceeds
all the expenses are covered, improvements
made, and contributions to various labor
movement activities. A part also goes to
the members.
I saw a number of American tractors
bought by the co-operative, which the
members, if left to themselves, would never
have been able to buy. The Government
CORRESPONDENCE
has entrusted that particular co-operative
with the care of a number of war orphans,
paying the institution a certain amount of
money for each child.
The managers of the institution showed
me the bulky books containing records of
the business done. The amounts ran very
high. I have not the figures with me but
I remember that they impressed me very
strongly. I left the institution full of en
thusiasm for the work done by the Italian
socialist peasant -co-operatives in Italy,
like the enthusiasm I felt for the work of
the Italian labor movement generally.
JOSEPH SCHLOSSBERG.
A HARD QUESTION FOR
DES MOINES
The Parker bunch of Chicago ("Co-op
erative Society of America") have sold in
this city close to $50,000 worth of their
stock in a worthless institution. The
thought naturally occurs to us, if the people
will put this amount of money in a thing
that is bound to fail why will they not put
money in our society which has a record
of four and a half years of successful op
eration in the interest of the people. Our
board are honest men who have the Co
operative Movement at heart. We know
that if we could sell $50,000 worth of stock
we could show results with the money.
A. R. MORRIS.
Des Moines, Iowa.
WILDROSE, NORTH DAKOTA
FARMERS' STORE
Since our store has been re-organized
and run eight months it has sold $30,000
worth of goods, and our inventory shows
a trifle better than 20 per cent, profit. The
manager's salary, rent, and one extra clerk
amounting to about $2,000 must be de
ducted from the profit. We have four
towns on this branch railroad having farm
ers' stores.
W. S. BECKER.
Wildrose, N. Dak.
"CO-OPERATION" A REAL BOON
Every new number of "Co-operation" is
a real boon. I look at all the Co-operative
periodicals now and find none which so
interestingly relates the Co-operative Move
ment to other movements in the economic
field as does "Co-operation." As the rea
soning is simple so the information is def
inite.
JOHN COLLIER.
Mill Valley, California.
CO-OPERATION
PUBLICATIONS
OF THE
Co-operative League of America
HISTORICAL Per Copy Per 100
Story of Co-operation . ................................................^ .10 $6.00
British Co-operative Movement ........................................ .10 6.00
A Baker and What He Baked (Belgian Movement)...................... .05
Co-operative Consumers' Movement in the United States............... .05 4.00
TECHNICAL
How to Start and Run a Rochdale Co-operative Society.................. .10 4.00
System of Store Records and Accounts.. j............................. .50
A Model Constitution and By-Laws for a Co-operative Society........... .05 2.50
Co-operative Education. Duties of Educational Committee Defined..... .10
How to Start a Co-operative Wholesale................................ .10
Why Co-operative Stores Fail .............. .......................... .02 1.00
Co-operative Store Management ...................................... .10
How to Start and Run a Women's Guild................................ .05
MISCELLANEOUS
Producers' Co-operative Industries ................................... .10
Control of Industry by the People Through the Co-operative Movement... .10
Credit Union and Co-operative Store.................................. .05 1.75
Co-operative Movement (Yiddish) ..................................... .02 1.25
Co-operative Housing ................................................. .10
Harmonizing Co-operative Producers and Consumers.................... .03
ONE-PAGE LEAFLETS
(One cent each; 50 cents per 100; $2.50 per 500; $4 per 1,000)
(1) Principles and Aims of the Co-operative League of America; (17) Do You Know Why You
Should Be a Co-operator; (20) Why Loyalty Is Necessary; (21) Cost and Crime of
Credit; (22) A Real Co-operator; (25) Resolutions Adopted by A. F. of L.; (26) Factory
Workers, Co-operate!; (28) Do You Know About Co-operation in Europe?; (40) Hava
You a Committee on Education and Recreation?; (44) What Is the Co-operativ«
Movement? Miscellaneous Educational Leaflets.
MONTHLY PUBLICATIONS
CO-OPERATION—(In bundle lots, $7.50 per hundred). Subscription, per year......... .$1.00
HOME CO-OPERATOR, 4 pages ................................................ $1 per 100
INTERNATIONAL CO-OPERATIVE BULLETIN (Pub. by The I. C. A.)...... .per year, $1.50
BOOKS
The following books are recommended as containing the best discussions of the modern
Co-operative Movement. They made be ordered through The League:
Bubnoff, J. B.: The Co-operative Movement in Russia, 1917.......................... .$1.25
Faber, Harald: Co-operation in Danish Agriculture, 1918.............................. 2.75
Flanagan, J. A.: Wholesale Co-operation in Scotland, 1920............................ 2.00
Gebhard, Hannes: Co-operation in Finland, 1916...................................... 2.00
Gide, C.: Consumers' Co-operative Societies, 1921...................................... 2.50
Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, $2.00; paper
bound ........................................................................... .60
History of Co-operation in the United States. Vol VI, John Hopkins University Studies,
1888 ...............................................................................4.00
Holyoake, George Jacob: The History of Co-operation, 1908............................ 2.00
Holyoake, George Jacob: The History of the Rochdale Pioneers........................ 2.00
Howe, Fred C.: Denmark, a Co-operative Commonwealth, 1921.......................... 2.50
Maxwell, Wm.: History of Co-operation in Scotland, 1910.............................. 2.00
Nicholson, Isa: Our Story ............................................................ .25
Powell, G. Harold: Co-operation in Agriculture. Macmillan ........................... 1.50
Redfern, Percy: The Story of the C. W. S............................................. 2.00
Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918....................... 2.50
Smith-Gordon: Co-operation in Many Lands, 1920...................................... 2.50
Sonnichsen, Albert: Consumers' Co-operation, 1919. Cloth bound, $1.75; paper bound... .75
Stolinsky, A.: The Co-operative Movement. In Yiddish................................ 1.00
Webb, B. and S.: The Consumers' Co-operative Movement, 1921........................ 5.00
Webb, Catherine: Industrial Co-operation, 1917 ...................................... 1.50
Woolf, Leonard: Co-operation and the Future of Industry............................. 2.00
Woolf, L.: Socialism and Co-operation................................................ 2.00
"The Co-operative Consumer" and "Co-operation," III (1917), VI (1920), VII (1921).... 1.75
Transactions of Second American Co-operative Convention, 1920....................... 1.00
(Ten cents postage should be added for books which cost more than $2.00, and five cents
for the smaller books.)

THE CO-OPERATIVE LEAGUE OF AMERICA
(Member of The International Co-operative Allinace)
Executive Office: 2 West 13th Street, New York
An educational organization for teaching the history, principles, methods and aims of the
Co-operative Movement and for the promotion of Co-operation in the United States.
Join The League and thus help promote the educational work of the Co-opera
tive Movement. Individual Membership, 1.00 a year.
Subscribe for CO-OPERATION
Formerly the "Co-operative Consumer." The Monthly Magazine of The league.
Keep in touch with the Movement, $1.00 a year.
This Journal Is Not Published for Profit
Co-operative Central Exchange
Wholesale Grocers and Jobbers,
Bakers
We supply goods to Co-operative Societies ONLY
We are owned and controlled by Co-operative
Societies.
We are organized to enable Co-operative Societies
to do collectively what they cannot do indi
vidually.
Co-operative Central Exchange
Offices, Warehouses and Plant:
Winter Street and Ogden Ave.,
SUPERIOR, WIS.
Co-operators' Ltd. Mutual Fire Insurance Co.
is now writing insurance in State of Wisconsin.
The Canadian Co-operator
Brantford, Ontario,
Canada
The organ of the Canadian Co-opera
tive Movement, owned by and con
ducted under the auspices of The
Co-operative Union of Canada.
Published monthly; 75c per annum
MOVING PICTURES
and
Stereopticon Lectures
may be rented from
CO-OPERATIVE LEAGUE OV AMERICA
2 West 13th St., New York City
1. "Soiie Examples of English Co-operation."
Moving pictures of factory processes (two
reels) ................................$5.00
S. 'Co-operation in the United States."
With E3 Stereopticon views ........... .$3.00
3. "The Co-operative Movement in Russsia."
With 36 colored Stereopticon views... .$3.00
Co-operation in Scotland
In no part of the world is Co-operation further
developed, or more successfully practised than in
Scotland. If you wish to keep in touch, read
"The Scottish Co-operator"
(Published Weekly)
Subscription: Tear 12 sh.: half-year, 6 sh.
Address, 119 Paisley Road,
Glasgow, Scotland
THE PRODUCER
Issued Monthly Price 3d.
If you want to keep in touch with
business, organization, administra
tive affairs, and problems of the
British Co-operative Movement,
read THE PRODUCER.
Published by
Co-operative Wholesale Society, Inc.
1 Balloon Street, Manchester.
Post free 4 sh. 6d. a year.
The Trade and Technical Organ of British
Co-operation.
STORE EQUIPMENT FOR SALE
The Co-'operative League is in
touch with several societies which de
sire to dispose of surplus equipment,
including cash registers, computing
scales, adding machine, National ac
count file, and mimeograph. Any
store needing such material may be
able to secure a bargain. The League
will be glad to forward any commu
nications to the owners of this equip
ment.
A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in vol
untary organization, produce and distribute for their own use the things they need
Published monthly by the Co-operative League, 2 West Thirteenth Street, New York City.
J. P, Warbasse, Editor. Price, $1.00 a year. Entered as second class matter, December 19,
1917, at the Post Office at New York, N. Y., under ,the Act of-March 3, 1879.
Vol. VIII, No. 4 APRIL, 1922 10 Cents
HOW CO-OPERATION CAN WIN
Five million of the population of
Great Britain possess eleven billion
pounds of the capital of the coun
try. This represents all of the na
tional wealth, except about 640,-
000,000 pounds, possessed by the
rest of the people, who number 38,-
000,000. The latter are the work
ers, the former are from the so-
called upper and middle classes.
The annual income of the 5,000,000
capitalists is given as 830,000,000
pounds. If the total income were
from investments it would mean a
yield of 8 per cent annually. Enough
of this income of the wealthy and
middle classes is earned by their
own labor to reduce the income
from investments to 6 per cent. This
result is arrived at by assuming that
2,000,000 of the 5,000,000 well-to-
do are at work, and that their earn
ings amount to 100 pounds a year.
If it were assumed that their
earned income were 150 pounds, the
income from investments would be
5 per cent. If they earn 200 pounds
a year they would have 4 per cent
income from property. These fig
ures are from Honey's "Riches and
Poverty." The low salaries earned
by people of the upper and middle
classes is corroborated by Mr. E. O.
Greening. It is a well-known fact
that before the war only a minority
VITAL ISSUES
of the joint stock companies in Bri
tain paid dividends of 5 per cent or
over. The average income from in
vestments was around 4 per cent.
The year 1920 was a period of
bad times, but during that year the
1,379 consumers' societies of the
British Union did a business of 254,-
000,000 pounds, and used share and
loan capital of 86,553,168 pounds.
The net surplus, after paying inter
est on loans, salaries and all other
expenses, was 25,450,000 pounds.
This is a net return of 30 per cent
on the capital invested. The return
varies from 30 to 40 per cent. We
have societies in the United States,
and there are undoubtedly British
societies which show 50 to 100 per
cent returns on the invested capital.
This means that having made his
investment, the member of the co
operative society has only to pat
ronize his society, where he buys at
fully as good an advantage as in
private business, and his capital
earns this large return.
The Co-operative Movement thus
has the power to do for labor six
times more than what capitalistic
investment can do for the capitalist.
Let us now turn to the 640,000,000
pounds of capital owned by the
working class. If all the working
people invested this co-operatively,
on the same basis of return as their
present investment of 786,000,000

56 CO-OPERATION
pounds, in five years every working
class family would be in the same
position of competence as the mid
dle and upper classes. In other
words, each of the working class
families would have the same
amount of wealth as each of the
capitalist families.
This, of course, is wholly a theo
retical calculation, for there are
many intercurrent possibilities.
And, moreover, it takes a long time
to educate the rest of the working
people as to what is their best in
terest. These figures are presented
to show the possibilities of Co-oper
ation from the simple investment
standpoint.
In the United States all the money
in the country passes through the
hands of the workers three times a
year; they earn it and spend it all
every four months. It is the spend
ing of this money with profit-mak
ing business that produces the cap
ital that makes it possible for the
non-workers to live without per
forming service. It is to gain this
profit from the consumers that most
of the business of the world is run.
Should the consumers carry on their
own business and keep the profit for
themselves, they could accumulate
the profit for expansion of industry
which now goes to the capitalist.
All they need to do is to organize
the co-operative sluiceway which
shunts off the golden current from
the pockets of private traders into
their own pockets. The consumer
occupies the strategic position, and
he can win when he organizes his
spending power.
NOTHING FAILS LIKE SUCCESS
We publish this month some final
information on some organizations
that have been called "co-opera
tive." This is necessary, because
many people thought they were co
operative. And, because people
have held this delusion, it is neces
sary to give information concerning
them in a co-operative magazine.
Many thousands of people have sub
scribed to these things in good faith.
The working people have lost some
$18,000,000 by them in the past
three years. These facts cannot be
ignored. We 'have to publish them,
as much as we dislike to use our
space for this purpose.
It is not pleasant to harp upon
this subject, but it must be done.
The failure of these enterprises
was inevitable, as we have always
shown. Had they kept on, and con
tinued to take money from the peo
ple, such "success" would have in
flicted continuous harm upon the
Co-operative Movement, although
the failure of each, one by one, has
been a hard blow to the working
people who trustingly invested their
savings. Co-operation in the United
States continues to succeed and to
win its victories. The final failure
of these false co-operatives is
among the successes of real Co
operation.
BANKS LEND CREDIT
Lending the people's credit is what
the banking system does with the
people's money. The high financiers
talk much of the risks of the banking
business; they assert that the stock
holders, the people who finance the
bank, should get the profits. There
is no doubt that they do get the pro
fits, but is all of this talk abut the
stockholders financing the banks cor
rect? At the present time in the
banks of the United States for every
$1.00 that the stockholders have in
vested in our banks the depositors
have invested $15.00. The share
holders have invested in our 31,618
banks a total in round figures of $2,-
500,000,000; but the depositors have
in these same banks $36,700,000,000.
Now, the money these banks do
business on and out of which they
make their profits is $15.00 of the
people's money to every $1.00 of the
stockholders' money, yet the stock
holders are the fortunate ones who
get the profits. The many lenders of
this vast sum of money and the many
borrowers of it make possible the vast
business which pours a river of pro
fits into the laps of the few stockhold
ers. The depositors furnish the
credit, the stockholders loan it, and
take the profit for themselves.
The co-operative system of bank
ing provides that the borrowers and
the lenders are the chief factors con
cerned. The figures show that they
are fifteen times more of a factor
than the stockholders. The co-opera
tive method is simple, but above
all it is just. Precisely the same prin
ciple applies in banking as applies in
any other business. It is possible
for the people, who have credit to
lend, to organize with the people who
want to borrow it. They can cut out
the middleman. The people can be
their own bankers as well as they
can be their own merchants. All that
is required is the will to know how,
and then to do it.
RELATIVES OF DIRECTORS
Co-operation can have no favor
ites. Every sound society sees to it
that the members are safeguarded
against personal favoritism or priv
ilege in any form. Many societies
provide in their by-laws that the
society shall not purchase gooda
from a director, nor shall any di
rector occupy a position in the so
ciety commanding a salary.
There are naturally circum
stances under which exceptions
must be made to this rule; but in
general it is sound. The same per
son cannot well be employer and
employee.
Employing members of the family
of a director is discovered to have
serious disadvantages. There have
been many societies ruined because
influential members of the board
of directors insisted in putting their
family and relatives on the pay roll.
Some of these employee-relatives
CO-OPERATION 57
have been highly incompetent. In
one society three incompetent clerks
were members of the family of the
president of the board. No society
can survive this sort of administra
tion. Some plain speaking in the
board and then before the whole so
ciety is essential in such cases. It
should be done in a friendly and
kindly way, but it should be done.
Some societies are willing now to
go so far as to put a section in their
by-laws forbidding the employment
of members of the families of di
rectors. It may now and then pre
vent the employment of a desirable
worker, but on the whole it would
go a long way toward preventing a
serious abuse.
Of course the remedy is to have
the members of a society so well
educated and so deeply interested
that they will only elect directors
who will be animated by the best
good of the society. Directors who
permit personal favoritism to influ
ence them in making appointments
of employees are not fit for the
office and should be recalled as soon
as possible. A director should have
but one single standard of conduct
—only the thing that is for the best
good of the whole society.
A GROWING HOST
The 30,000,000 heads of families,
who are organized in the Co-opera
tive Movement in twenty-six coun
tries, represent more than 120,000,-
000 people. This is a great and grow
ing host. It brings to the suffering
world the light of a new civilization.
Those who give themselves to this
Movement are building upon the
foundations of eternity.
J. P. W.

58 CO-OPERATION CO-OPERATION 59
EUROPEAN IMPRESSIONS
The British Co-operative Move
ment began in Scotland. The Glas
gow district is the cradle of Co-op
eration. For seventy-five years be
fore the Rochdale Pioneers opened
their store, co-operative societies had
been developing in the land of oat
cakes. If one will look at the sturdy
faces of the Scotch Co-operators he
will see determination written large.
A people who are descended from an
cestors who made a living out of the
unfertile soil of Scotland, who sur
vived its harsh climate, and who
threw off the yoke of as relentless a
class of nobles as ever starved their
subjects, must win success. The Scots
who were not made of sturdy stuff
all perished long ago. I realize that
one of the most hopeful things about
our American movement is that we
have a lot of Scotch in it.
The first impressive thing that we
saw in Scotland was the Scottish
Co-operative Wholesale Society. It
has the most imposing business build
ings in the city of Glasgow. Glas
gow strikes one as really more of a
co-operative center than any of the
big British cities. It not only has a
great wholesale but big and thriving
distribution societies. The show
rooms of the wholesale are most
attractive. The quality of the wares
is good. Robert Stewart, Pres
ident of the S. C. W. S. since 1908,
accompanied us through the build
ings in the Morrison Street section
and through the factories at Shield-
hall. Shieldhall is a section of Glas
gow, on the Clyde, bought by the
S. C. W. S. in 1887, where the whole
sale has now about thirty different
industries. This is the most varied
complex of industrial plants to be
found anywhere in the world. More
than 5,000 employees are occupied in
factories producing shirts, hosiery,
underwear, tobacco, brushes, food,
shoes, clothing, furniture, packing
CO-OPERATION IN SCOTLAND
By J. P. WARBASSE
cases, tin boxes, and bags. A large
printing and publishing plant, chem
ical department, fire department, am
bulance, dining room and kitchen are
among the equipment.
Flour mills, woolen mills, farms
and other factories of great variety
are to be found in many other parts
of Scotland. The carting department
of this organization has 200 horses
and 75 automobile trucks. In 1910
it did 6 per cent of its own cartage;
in 1921 it did 52 per cent. It is eman
cipating itself from express compan
ies and railroads. Organized in 1868,
its business has steadily increased,
till now it amounts to $150,000,000
a year. This can be said of the S. C.
W. C.: it is the great wholesaling
business in Scotland; in addition to
volume of trade, its products are of
a high grade; its factories are clean;
and though its directors do not aver
age young in years, the Scottish
wholesale is progressive and alert.
We went out to Calderwood, an es
tate and farm of 1,125 acres owned
by the S. C. W. S., to a Saturday
afternoon picnic. On the same day
we attended the children's outing of
the United Co-operative Baking So
ciety, as guests of the president,
Alexander Buchanan. The children
train all winter in their choral so
cieties for the annual big concert,
and as a reward for their hard work,
every summer they are given a party
with contests, games and prizes. This
society has two brass bands and gives
much attention to recreations. These
organizations all keep up educational
work.
On Sunday we went to Paisley and
found a society over sixty years old.
It too has beautiful buildings, as well
as enough stores to supply the town,
a bakery, several dairies and a mem
bership nearly as big as the total
number of families in the city. It
was a joyful experience to enter the
central office building of this society,
the largest office building in the city,
and see etched in the glass of one of
the office doors, the words, "Educa
tional Committee." This committee
carries on some education function at
least once a month. In Paisley, as
in many others of the Scottish socie
ties, children's singing and play
classes are a successful part of the
educational work.
I have visited many baking socie
ties but none which has the unique
record of The United Co-operative
Baking Society. Next to the Vienna
Co-operative Bakery, this is probably
the largest bakery in the world. It
has 120 ovens with the most modern
machinery. It celebrated its half cen
tury jubilee in 1919 and issued a
handsome history. Briefly it is a
federation of 212 Scottish co-opera
tive societies with $2,500,000 share
capital. It sells $8,000,000 worth of
bread and cakes and makes an an
nual surplus-saving of $300,000. It
devotes $7,000 a year to co-operative
education, carries $250,000 worth of
goods in stock and has $1,500,000
reserves. It uses 30,000 tons of flour
a year and puts out 800 tons of
breadstuffs a week. It has branch
bakeries in Scotland and in Ireland.
As I went through this huge estab
lishment, I was impressed with the
fact that Co-operation does best to
begin with supplying the most simple
and primitive needs, and bread is one
of these; and from that point it may
go on indefinitely. Bakeries have been
the beginnings of many societies for
more than a hundred years; they
have been more universally success
ful than any other co-operative en
terprise; they are especially adapted
to Co-operation; and accordingly it
is natural that two of the greatest
bread bakeries in the world are
owned by the people who consume the
bread.
We visited also stores of several of
the other Glasgow societies.
The Kinning Park Society has 30,-
000 members and 75 stores. The St.
George Society is nearly as large.
Then Glasgow has the St. Rollox, the
Progress, Cowlairs, and London-Road
societies.
It is a great satisfaction to look
down a main business thoroughfare
in Glasgow and see a big sign painted
on the side of a building, "Join the
co-operative society nearest your
home." In America such an advan
tageous advertising space would be
occupied by a cigarette sign.
The big society of Edinburgh is
St. Cuthbert's Co-operative Associa
tion with some 60,000 members, with
150 different establishments, carry
ing on every sort of business. It
dates back to 1859, and shows a
steady growth.
Scotland is building a wonderfully
substantial movement. The Scotch
are slow to act and stubborn. But
they are proving that Co-operation
is the way out. The only thing that
holds them back is respect for estab
lished privilege. The King and no
bles are all beloved of the Scotch.
Dear old William Maxwell, the form
er President of the Scotch Whole
sale, was fond of proposing toasts
"to our beloved Queen." The Scotch
still "dearly love a laird."
Scotland does not produce enough
food-stuff to feed the people; yet one-
fifth of its area is used for hunting-
lands for the British nobility. Think
of it! Scotch Co-operators, like their
English brothers, are fed from the
cradle up, on the glory of the British
Empire, and but vaguely realize that
the things they are working for have
as their natural opponent the whole
British state with all of its trappings
and appurtenances.
When the International Co-opera
tive Movement knits more closely to
gether the countries of the world,
these slow and steady Scots and
Britons will catch the scientific meth
ods and efficiency of the Germans,
and the result will be victory for the
people.
For two months we had studied co
operative societies in ten countries in
Europe. Every day, all day and well
into the night, for six days a week
of that time we had visited societies
or their members. Such an experi-

60 CO-OPERATION
ence inspires one with positive con-
clusiveness that Co-operation can
win, that it is winning, against all
the forces of reaction, stupidity and
chauvinism—even despite its own
blunders or inefficiency. It is win
ning because it is the natural and
scientific method. If it does not win,
the world is lost, and we may as well
go back to our caves and our war
fares. Co-operation must prevail.
Utopians have dreamed of a so
ciety in which the people produce and
distribute for themselves, without
the profit motive, in which business
is carried on for service. The So
cialists pray for it and vote for it
and hope that at some remote day it
may be realized. But it is here. It
is a dream come true. I have beheld
it and lived in it. I have seen the
people in their own co-operative
homes, served by their own stores
and factories, protected, entertained,
and educated by agencies all their
own.
It is said that no man can go into
the future and come back and relate
what he has seen. I have done it.
And coming back to earth again was
a great jar. But the experience has
taught me that Heaven is not a myth.
The Utopia is not far away. It is
just up the road a bit on the sunny
slopes of the Future. The path is
straight and broad enough for all.
We must beware of the byways that
would lead us astray. We can not go
alone. But if we all join hands, we
can go; and we shall find the journey
sweet.
THE INTERCOLLEGIATE CO-OPERATIVE
SOCIETY:
FIRST CHAPTER AT MARQUETTE UNIVERSITY
By ALBERT P. SCHIMBERG
President Marquette University Chapter Intercollegiate Co-operative Society
The youthful ardor of the college
student has been enlisted for Co
operation. A group of earnest col
legians have rallied to the banner of
"All for Each, Each for All," and
have sent out a call to their fellow-
students to join them in the move
ment which they believe is at once
the most ideal and the most prac
tical of all the movements dealing
with our social-economic problems.
In Marquette University, Milwau
kee, Wisconsin, in the great Middle
West, "The Valley of Democracy,"
Booth Tarkington calls it, there has
been organized the first chapter of
the Intercollegiate Co-operative So
ciety. This chapter has sent out a
statement of its purposes, together
with an invitation to students in all
American and Canadian universi
ties and colleges to form chapters.
It sent also suggestions, including a
copy of its constitution, in the hope
that its experience may be of assist
ance to other collegians.
Marquette University Chapter
owes its inception to the resolution
adopted at the Second National
Convention of The Co-operative
League, held at Cincinnati in No
vember, 1920. Professor Joseph
Reiner, author of the resolution,
was made Chairman of the commit
tee, and charged with carrying its
provisions into effect. This he pro
ceeded to do, when, in the fall of
1921, he became a member of the
faculty of Marquette University. He
gathered a group of students inter
ested in social study and explained
to them the philosophy, the history,
the methods and the potentialities
of the Co-operative Movement. Soon
afterwards the pioneer chapter of
the Intercollegiate Co-operative So
ciety was formed, and weekly meet
ings have been held.
After the chapter members had
familiarized themselves somewhat
more with the movement, they be
came enthusiastically eager to
spread the gospel of Co-operation
among their fellow-students in all
parts of the United States and Can
ada. Nor is their ardor for Co
operation bounded by the borders of
their own land and the Dominion.
They hope that soon their Latin-
American brothers will be enlisted
in collegiate Co-operation activity,
and that eventually there will be a
world-wide collegiate co-operative
society, potent not only for the
cause of Co-operation, but also, be
cause the movement inculcates good
will, a mighty force for peace on
earth and friendliness among all
peoples.
The resolution adopted by the
Cincinnati Convention of The Co
operative League declared that "It
is of great importance to the Co
operative Movement that students
in our colleges and universities be
come acquainted with its history,
principles and methods, and that
they identify themselves with the
Movement."
Marquette University Chapter
members believe that Co-operation
deserves students' allegiance, be
cause, as they declare in their state
ment, it is "a practical ideal of the
highest social and economic signifi
cance," and "the most important
element in the solution of our vexing
social problems." They are con
vinced that once acquainted with
Co-operation, the earnest, social-
minded students of all lands will
gladly give the Movement practical
interest no less than theoretical
study while in college, and upon
graduation will continue their ac
tive interest in genuine co-operative
projects. They see particular need
for this in America. In Europe Co
operation is widespread, and rests
on firm foundations of successful
years. In the New World it is still
in the making, and it deserves and
desires what the college man can
CO-OPERATION 61
give it: leadership, youthful ideal
ism and ardor to supplement the
wise counsel of older men, eager
ness to make the benefits of Co-op
eration available to many, practical
knowledge with which to give as
sistance and point out the wheat of
genuine Co-operation from the chaff
of selfish schemes.
The pioneer collegiate chapter
emphasizes the desirability of act
ual contact with the Co-operative
Movement on the part of its mem
bers. It wants to carry out the
provision of the Cincinnati resolu
tion, which desired that college men
"identify themselves with the Move
ment." They want to keep close to
the Movement. At their meetings
they read not only excerpts from the
magazine "Co-operation," the organ
of The Co-operative League, and
other co-operative literature, but
papers resulting from personal in
vestigation of groceries, bakeries,
cigar factories and other co-opera
tive enterprises. In no better way
could they get first-hand informa
tion and a clear insight into the
practical methods of this ideal sys
tem.
A significant instance of the Mar
quette University Chapter's empha
sis on practicability and on keeping
in close touch with the Movement,
was the address before the chapter
by the manager of a co-operative
cigar factory. The chapter plans to
invite other leading Co-operators to
tell its members how they organized
and how they are conducting their
enterprises.
The students who established the
first Intercollegiate Co-operative
Chapter believe that its two-fold
appeal, idealism and practicability,
will find a hearty response in Amer
ican and Canadian and later in oth
er collegiate institutions. They be
lieve Co-operation will help to build
a better world for the peoples of the
earth, and in rearing this noble
structure they wish to see all college
men have a part.

62 CO-OPERATION
A HOME FOR THE LEAGUE AT
LAST!
The League is about to move into
its own building! At last we have
a home of pur own. If the contract
ors do their duty the work will be
completed and the offices of The
League will be transferred to our
own premises on May first.
We have kept rather quiet about
this. But, now, as we see the work
nearing completion, we are so bub
bling over with joy that we have to
tell about it before we move. It is a
reality. The building is a fact.
For eight years the executive of
fices of The League have been at 2
West 13th Street, New York, in the
Educational Building. Four times
during that period we have had to
shift our offices from one part of the
building to another in order to get
more room. At present The League
has offices on two different floors in
that building, its literature bureau
and shipping department in another
building four miles away and the
literary editor in Connecticut. Now
we shall unite our work under our
own roof and no longer be at the
mercy of landlords.
The new building is, 167 West 12th
Street, New York City. That is easy
to remember. One and six make
seven; the light of the sun moves
toward the West; and the twelve
apostles are known to all.
When it was finally resolved that
The League must have its own build
ing, the Executive Board set about
it to find one. After much search,
a modest four-story private house
was found, and bought. The whole
house is being remodeled, and the ar
chitecture completely changed. On
one side of our house is the Model
School which is nearly co-operative
in character; on the other side is a
co-operative apartment house now in
process of construction. The League
is a shareholder of this building so
ciety, and it will become a member
of The League. Across the street is
OUR MOVEMENT
St. Vincent's Hospital. Our house is
a few steps from the 12th Street en
trance of the 14th Street express sta
tion of the Seventh Avenue subway.
It is located between Union Square
and the Greenwich Village districts
on a restricted street, quiet, and very
accessible.
The British Union headquarters
are Holyoak House, Manchester.
Facing the Place Edwarde Anseele
in Gent, Belgium, is "Ous Huis"
(Our House). This is the head
quarters of Belgian inspiration.
"Our House" in New York is the
center of the Co-operative Movement
of the United States. To this center
will gravitate the information con
cerning our Movement, and from this
center will radiate the information to
make our Movement sound and clean.
We have a long way to go. We
must work patiently and fundament
ally. Building a structure that will
endure is the task for Our House.
INCORPORATION OF THE CO
OPERATIVE LEAGUE
Ever since the organization of
The Co-operative League it has en
deavored to become incorporated.
But no state in the Union had a co
operative law or a corporation law
under which incorporation could be
secured. This was because (1) The
League is composed of societies and
not of individuals; (2), it has no
shares or capital; and, (3), it is
an interstate organization, having
members in every state, and direct
ors distributed from the Atlantic to
the Pacific. These are only a few
of the peculiarities of The League
which were not compatible with
corporation laws. The law which
was most nearly applicable was
found in New York State.. The Ex
ecutive Board went to work on this
law, and after three years of labor,
succeeded in obtaining amendments
which made incorporation possible.
The League is now incorporated.
But in order to accomplish this it
was necessary to make some con
cessions to the law.
First, The League has had to alter
slightly its name. It will be called
The Co-operative League, but the
full legal name is The Co-operative
League of the United States of
America (Association Incorporat- •
ed). We shall not use all of this
name. The first three words suf
fice.
Second, It has been necessary to
modify slightly the constitution of
The Co-operative League of Amer
ica to adapt it to the corporation
law. The final amending of the
constitution will take place at the
Third Congress of The League, to
be held in the fall of this year.
In the meantime, the Board of
Directors have approved it and
voted that The League shall operate
under the new name. Incorporation
has been secured in order that the
members of The League should be
protected and not have to carry the
hazard of individual responsibility.
THE CO-OPERATIVE LEAGUE'S
SCHOOL
The Co-operative League will
open its school with a course of ten
lectures, at The League's House,
167 West 12th Street, New York
City, May 2, 1922. The class will
meet evenings at 8 o'clock.
May 2
1. "The Need of an Understand
ing of the Co-operative Movement.
Current Errors in Economic Think
ing. The Multitude of Economic
Programs. Principles of Co-opera
tion," J. P. Warbasse.
May 5
2. Part 1: "Economic Conditions
in the Early Nineteenth Century,
Robert Owen; Rochdale; Eighty
Years of Co-operation in Great Bri
tain," Albert Sonnichsen. Part 2:
"The British Movement Today"
(with stereopticon views), Julia N.
Perkins.
May 9
3. "Social Uses of Co-operation in
Belgium; Holland; Scandinavia;
CO-OPERATION 63
Switzerland; Co-operative Hous
ing," Agnes D. Warbasse.
May 12
4. "Germany, the New Leader
of Co-operation in Europe; the Cra
dle of Co-operative Banking; the
Highly Developed Technical Effi
ciency; the Race Between Co-opera
tion and Starvation in Austria; Vi
enna's the Largest Society in the
World; the Various Expressions of
Co-operation," J. P. Warbasse.
May 16
5. "Denmark, a Country 80 Per
Cent Co-operative; the Movement
in Finland; the Slow Awakening in
France and Italy; the 30,000,000
Russian Co-operators Who Passed
Through the Revolutionary Period;
the Co-operatives and the Soviet;
the Movement in India and the Far
East; Agriculture," Agnes D. War
basse. May 19
6. "The United States, Land of
Experiment and Opportunity; the
Various Racial Groups; Farmers as
Co-operators; Organized Labor and
Co-operation; the Variety of Co-op
erative Activities in This Country;
Federations and Wholesales" (with
stereopticon views), Mabel W.
Cheel. May 23
7. "Practical Methods: Part 1,
Organization and Administration;
the Reconciliation of Democratic
Control and Technical Efficiency; a
Study in Co-operative Failures,"
Cedric Long; Part 2, "The Place
of Education in the Development of
the Society; the Co-operative vs.
the Private Store as Regards Serv
ice; Relation to Employees and
Patrons; Women in the Movement,"
Mabel W. Cheel.
May 26
8. "Legal Problems: Incorpora
tion Under Adverse Laws; the Ene
mies: Unsound Schemes, Privileged
Interests, Profit-Making Business,
and Impatient Reformers; the
Home of Frauds and Faddists," H.
Rappaport. May 31
9. "The Relation of Co-operative

64 CO-OPERATION CO-OPERATION 65
to Other Movements; the Attitude
of Co-operation Toward the State;
Internationalism; Racial Problems;
Unemployment; War; Producers'
and Consumers' Co-operation," Ced-
ric Long.
Jmne 2
10. "Philosophy and Ethics of
Co-operation; the Co-operative
Goal; Voluntary vs. Compulsory As
sociation; Production for Use vs.
Production for Profit and Wages;
the Universal Human Denominator,
the Consumer; Co-operation as an
End in Social Reorganization," J. P.
Warbasse.
This course will be followed by a
course on Technical Problems.
CONFERENCE OF JEWISH
SOCIETIES
The Federation of Jewish Co
operatives of America has proposed
that The Co-operative League take
over its functions. The League lhas
agreed to establish a Jewish Depart
ment, with a Jewish Secretary. A
conference to discuss this project
will be held at the new building of
The Co-operative League, 167 West
12th Street, New York, on Sunday
morning and afternoon, May 7.
All Jewish Co-operative societies
are invited to send delegates to this
conference to discuss ways and
means for such an amalgamation,
and for promoting co-operative edu
cation among the Jewish societies.
PRACTICAL ADVICE
The following letter received from
a co-operative society, and our reply,
speak for themselves. We are pub
lishing these two letters for the
benefit of other societies.
THE LETTER
I am submitting for your kind criticism
a statement of this Association, which to
my mind does not work out as well as ought
for the turnover made. We are only one
year old and hope for improvement. On the
matter of overhead expenses and methods
for keeping accounts, we would be thankful
for information. We have a McCaskney
System and do a large amount of credit
business, carrying the patrons 15 days gen
erally, and allowing credit to the extent of
75 per cent, of members' stock. We have
one delivery truck. We butcher our own
meat. Meat, groceries and fruit are the
principal items sold.
THE REPLY
We have analyzed your report, and think
in some respects it shows progress and
safety, while in the matter of turnover it
is not so good. You will see that you are
working on a 15 per cent, overhead. The
rent should hereafter be figured separately
fom other fixed charges. It is low in pro
portion to other items, but salaries are
rather high for the amount of business done.
They amount to 10 per cent, of the sales.
We figure that they should be nearer 5 per
cent. The only way to get around this is
to increase your sales by getting new mem
bers, and obtaining more loyalty.
The turnover on the capital stock is not
enough. You are doing a business of less
than $8,000 a month on $9,306 capital, not
counting the notes payable. You should aim
to do $10,000 a month. See page 12 of
"How to Start and Run a Co-operative
Store," and go over these figures with the
Board of Directors and manager.
We regret that you have not been able
to get away from the credit system. The
McCaskney system of keeping track of cred
its is good, but why give credit? If you
could start the coupon system instead, issu
ing a book for $10 or more, even at a small
discount, you would have the money in ad
vance, and the members would simply have
to bring their books or send them with the
order until the amount had been used up.
The giving of credit to the extent of 75 per
cent, is apt to ruin your society at any mo
ment. We heard this week o fa good so
ciety going under because almost everybody
started a run on the store to the extent of
the credit allowed. Begin now to educate
against the credit system, and show people
that it is to their mutual advantage to pay
cash.
We recommend the use of the control
system published by The League. This
system is a guide and an index of the busi
ness. It puts the full responsibility for
every bit of goods on the manager, at retail
value, and the checking up of his records by
a control committee teaches business meth
ods to a number of people.
It is very important to insist upon care
ful accounting, and believe a monthly re
port should be made to the members of the
exact conditions. A semi-annual reckoning
is not sufficient, especially in these trying
days of depression. Anything may happen
in six months, and it is quite important to
check up the little leakages and exert every
possible means to reduce expenses and save
the pennies.
THE CO-OPERATIVE LEAGUE or AMERICA.
GOOD EDUCATIONAL LETTER
The Educational Committee and
the Efficiency Committee of the Utica,
N. Y., Co-operative Society are com
posed of women. These two com
mittees sent out a circular letter to
the members of the society. This
letter is a model which other societies
might wisely follow:
The undersigned, having been selected at
the last meeting as Efficiency and Educa
tional Committee, are anxious to be of real
help in putting more Co-operation into the
Union Co-operative Society. Our first
thought in this connection is to address our
selves particularly to the women, because
unless they thoroughly understand the mean
ing of co-operation they cannot be expected
to be enthusiastic in the cause and thereby
interest themselves in the more rapid
growth of our organization.
We feel certain that if the women once
grasp the real meaning of this grand princi
ple of co-operation, they will immediately
become better customers of their own busi
ness enterprise and not be so ready to fall
for the tricky methods with which ordinary
business is ever striving the breakdown the
loyalty of co-operators.
In the first place, we will endeavor to con
vince you that it is very much to your own
interest to purchase absolutely nothing from
those who are constantly offering alleged
bargains, their purpose being simply to get
you to buy other goods. It must be plain
to you that no firm can sell goods at cost.
Every business enterprise has more or less
of overhead expense, such as rent, light,
heat, paper, string, and innumerable other
items which enter into the cost of doing
business. In addition there is delivery ex
pense, wages for hired help, interest on
money invested, as well as a profit for the
proprietor. These expenses are very much
alike in every business of a like nature.
Then, too, every business except ours (or,
rather, yours) has another item, namely,
bad debts; and this usually amounts to a
considerable sum in the course of the year.
Now, when you buy from others who sell
exactly the same sort of goods that you can
buy in your own store, you are not only
aiding them in meeting their overhead ex
penses and providing a profit for them, but
you are depriving yourself of the benefit to
be derived by decreasing your own over
head expenses. Let us see if we can't prove
this to you by way of figures:
Last year the Utica Co-operative Society
did a business of about $114,000. We have
invested in buildings, machinery, fixtures,
merchandise, etc., $67,000. The interest on
investment and other overhead expenses are
practically fixed items, and would not be
increased one cent if we did a volume of
business approximating $200,000, or prac
tically twice what we did in 1920. So that
we doubled our business this year, as we
certainly should, the fixed expense of doing
business will be distributed in such a man
ner that on each dollar's worth of business
pur expenses will be just one-half of what
it was last year.
This saving from better co-operation will
benefit you and every other member in ex
actly the proportion of your purchases, be
cause whatever is saved from the cost of
doing business will be added to the "Sav
ings-returns" which are distributed to the
members at the close of the year. This is
the material benefit you derive by giving
your business to your own store. Is it not
worth while? If you learn this lesson and
live up to it, you will at once make a firm
resolution to increase your own business,
buying only from your own store, boost for
the continued growth of our membership.
In a word, set your mind upon helping those
who help you.
Let us, therefore, all pull together to
make our society the tremendous success it
can and should be made. While we may
not be endowed with the keenest intellect,
we should learn to become equally inter
ested in promoting the welfare of our own
organization, for we are the ones that benefit
in the end. Every new member secured and
every additional dollar's worth of business
done in our store benefits all the members
alike, provided their investments in the so
ciety and their purchases are alike. Even
those who have never secured a new mem
ber and perhaps never intend to get one,
are benefited by the labors of the others in
increasing our membership. But the latter
class should at least endeavor to help them
selves and make their investment more
valuable to themselves by making their pur
chases at their own store.
To enable our committee to give further
aidto the cause, we earnestly urge that each
member fill out at once the "Questionnaire"
enclosed, and drop it into the Suggestion
Box just inside the entrance of our store.
Or, if you prefer, hand it to one of our
drivers or mail it direct to the Utica Co
operative Society, 914 Court Street. The
work we are planning is along the line of
better co-operation, and you can aid us ma
terially in this way. Furthermore, if you
have any complaint to make or any sugges
tion to offer, do not hesitate to make use of
this Suggestion Box. You may be sure that
your complaints or suggestions will have
the most careful attention, to the end that
all of us will be benefited.
Fraternally yours,
Educational Com.
Mrs. R. Henschke,
Mrs. D. Eichenhofer,
Mrs. A. Fahrman.
Efficiency Com.
Mrs. H. Brucker,
Mrs. F. Buttenschoen,
Mrs. J. Seaman.

66 CO-OPERATION
NEWS AND COMMENT
PACIFIC CO-OPERATIVE LEAGUE
IN RECEIVER'S HANDS
Three years ago The Co-operative
League began a study of the Pacific
Co-operative League. During this
period The League has had a number
of its representatives visit the Pacific
coast to get first hand information.
These representatives have included
its president in 1919 and its financial
secretary in 1921. During the past
two years particularly, a large
amount of correspondence, reports
and telegrams have come to the of
fice of The League and many Co-
operators from the Pacific coast have
brought information. The executive
board of The League for a long time
has been better informed concerning
what was going on the Pacific coast
than most members of the Pacific
League. In fact the indifference of
these members and of the Western
Labor Movement to the dangers of
the situation could be explained only
on the ground of ignorance.
As is the practice of The League,
we first gave the officers of the Pa
cific League the benefit of our ex
perience and judgment and tried to
work with them. Even though it was
evident that the Pacific League was
pursuing a course that was bound
to prove disastrous, we still hoped
that they could be induced to adopt
sound co-operaitve principles. We
had showed the Co-operators of the
whole country that the National Co
operative Association was using
methods that were bound to bring
failure and we made it perfectly clear
that the Pacific League was using
precisely the same methods. We had
the facts. We published the cold
figures and warned both these organ
izations that they were taking the
money of the working people with
no prospect of success.
In the face of this repeated ad
vice, the Pacific League supported
the National Association. This was
not the worst. Its officers united
with the officers of the National in
a campaign of false statements con
cerning the Co-operative Movement
such as this country had never seen.
We have already published in this
magazine how the employees and of
ficers of these two organizations
came to the Second American Co
operative Congress at Cincinnati in
1920 and attempted to destroy The
Co-operative League by methods
which were as unscrupulous as they
were unsuccessful. They stood on
the floor of the convention and de
fended practices which no decent
bunco man would have countenanced.
The pitiful story can be read in the
Transactions of the Second Congress
and in this magazine during the past
three years.
Still hoping that the Pacific League
might be saved, the executive officers
of The Co-operative League were in
strumental in having resolutions of
the Second Congress, which con
demned it, not given publicity. When
the credentials of the directors of the
National were withdrawn by the
Congress, exception was made of the
president of the Pacific League. He
remained and attended every one of
the nine sessions of the Congress.
But every consideration failed to in
terest these officials in sound Co-op
eration.
It has been evident for two years
that the Pacific League was abso
lutely in the grip of a small bureauc
racy of utterly impractical men.
They may once have had interest in
Co-operation but that interest has
left them. If they ever had a knowl
edge of co-operative principles they
have renounced them. The wildest
tyros could not hit upon more utterly
hopeless schemes for organizing co
operative societies. American Co
operation has some dark pages but
none so written over with ignorance
and shamelessness. The one thing
they resented was the advice of ex
perts whose business it is to know
the technic of co-operative methods.
In the spring of 1921, The Co-op
erative League worked out for
the Pacific League a critical anal-
ysis of its defects and a plan of re
organization. It was never acted
upon. The group of officials who con
trolled the organization had made it
practically impossible for outside in
formation or requests for informa
tion to reach the branches. The Cen
tral Office appoints the local store
managers and these managers act as
the agents for the San Francisco of
fice. Communications sent from The
Co-operative League to a branch of
the Pacific League, no matter to
whom addressed, were destroyed or
sent to the San Francisco office. It
was not only impossible for The Co
operative League to advise these
people but the separate societies
could not communicate with one an
other. They were isolated from the
Co-operative Movement, and to this
day many of them do not know what
is actually happening. The system
of espionage and suppression has
been effective in keeping these people
in quiet subjection. Conventions of
the Pacific League were largely con
ventions of the employers of the or
ganization branches. Had it been
possible to let in among the member
ship rays of light concerning the true
nature of the situation, the member
ship would have risen up long ago
and cast out the dangers that were
preying upon them, and organized a
true Co-operative Movement.
Repeated "reorganizations" of
the Pacific League have been re
ported and analyzed from time to
time in this magazine. "The Pacific
Wholesale" was never much more
than a fiction, for advertising pur
poses. "The Co-operative Finance
Company," the "Universal Co-opera
tive Brotherhood," and the "Pacific
Co-operative League Stores, Incor
porated," have all been launched one
after another, to save a bad situa
tion. Neither fancy stories, misrep
resentation nor bombast have suc
ceeded in promoting these enter
prises.
And now the latest news from the
Pacific coast is that the Pacific Co
operative League and the Pacific
League Stores, Incorporated, are in
CO-OPERATION 67
the hands of a Federal receiver. How
much on the dollar the disillusioned
people will get is doubtful.
Their officials tell them that the
organization is perfectly solvent, but
the solvency is based on high finan
cial sleight-of-hand. When a group
of people have paid in $7,000 cash,
and have a store opened with $2,500
worth of goods, and the balance of
the money is charged up to the ex
penses of organization, administra
tion and education, the concern is
solvent in terms of that kind of fi
nance, if it is any comfort to the
people to call it solvency.
It has been difficult to develop a
Co-operative Movement in California
under such conditions, with this out
rageous thing in the way. Fortun
ately there are good societies that
refused to be involved. Within the
Pacific League are many earnest and
honest people, eager for a Co-opera
tive Movement. There are many
sound Co-operators in California and
the neighboring states. These can
now come forward. The people whose
longing for true Co-operation has
been suppressed and discouraged can
now unite.
Co-operation in California has won
a victory. With the removal of this
burden on real Co-operation, the Pa
cific coast can now enter into a new
and clean co-operative life.
Let us hope that this is the last
we shall have to publish of this af
fair. Here are extracts from the last
four communications from the Pa
cific Coast; we could publish hun
dreds of such statements:
SELIGMAN ARIZONA HIT
I do not think we can do much with The
Co-operative Leagues' little paper, "The
Home Co-operator," now, because our
members are all sore about the whole sub
ject of Co-operation on account of the
treatment they have had at the hands of
Ames and his crew in San Francisco.
It is said that The Pacific League has
gone into the hands of a receiver. That
will hurt the movement all over the West.
A failure now will be very bad for the
cause. But Ames has brought this on by
his raw dealing with the stores; that is, if

68 CO-OPERATION
he treated the others as he did us. This
store has made money all the time, and has
a good trade now; but Ames has so used
up the cash that we have had but little to
go on; and he has always had a "claim"
against us in the home office.
Seligman, Arizona. T. W. BECKWITH.
PRACTICES AT PHOENIX
The Pacific League failed, not because it
was co-operative, but because it was not
co-operative. It consisted of a machine
which collected $10 a head from would-be
Co-operators, who were called upon to do
nothing but look pleasant while it kept
them in darkness, and now and then slipped
them a bit of taffy. In the branch to which
I belonged (Phoenix, Arizona), we never
once were told anything about a conven
tion till it was over, till we were told that
Mr. So-and-So had attended from Phoenix;
and he was the man who was running us.
The last occasion we heard of the delegates
were most of them managers of the dif
ferent stores who owed their appointment
to the San Francisco office. Such people do
not criticize. We found that any attempt
to exchange any information or ideas be
tween branches was denounced furiously
and prevented by every possible means.
Los Angeles, Cal. THOMAS H. BELL.
ADVICE FROM SAN DIEGO
(Telegram)
Sheriff closed our stores February 17.
Attachment by San Francisco wholesalers
for thousands owed by Pacific League.
Apparently scheme of League to destroy
all bona fide co-operatives refusing to turn
over stores to corporation controlled by
Ames, Todd and Dobbs. San Diego with
drew from League November 17. We do
not owe San Francisco wholesalers nor Pa
cific League one cent. Now suing Ames
and League for accounting and return of
several thousand dollars due us. Other
Co-operatives being closed by League and
big1 business. Workers will lose thousands.
These fakirs must be exposed. Can you
circularize coast unions, Co-operatives and
newspapers warning, against this outfit?
SAN DIEGO CO-OPERATIVE ASS'N.
CHARLES J. EASON, Pres.
STANLEY McGUE, Sec.
METHODS EXPOSED
(Telegram)
California Corporation Commissioner re
voked Pacific League Corporation permit
to do business in California February 17,
ten days before Ames asked receivership.
Following demand of Federated Trades
Council, State Commissioner has ordered
special investigation of Ames outfit. Car
penters' Union here has commenced legal
proceedings against Ames' crowd. These
facts should be given publicity.
SAN DIEGO CO-OPERATIVE ASSOC.
March 24, 1922.
ONE CENT ON THE DOLLAR
"The National Co-operative Asso
ciation" went into the receiver's
hands last year and its Hoboken,
Chicago and Seattle warehouses were
sold out. It owed The Co-operative
League for literature $44. The ac
counts have been settled and The
League has just received a check for
44 cents. The working people who
put in their money will get one cent
on the dollar. The lawyers get
$6,350.
A letter just received from the ref
eree in bankruptcy of the district
court of the United States states as
follows: "In my entire experience
as referee which covers a period of
ten years, I do not recall a case where
the funds were so badly dissipated as
they were in this matter. It is a
source of great regret that so small
an amount could be recovered, as
many poor persons were creditors of
this bankrupt who could ill afford to
lose the money. As I have observed
the wreck of this company I am
wondering whether there are any co
operative organizations that are
properly handled and are a finan
cial success."
Contrast the above facts with the
following statements of E. O. F.
Ames, president of the Pacific Coast
Co-operative League and director of
the National Co-operative Associa
tion, made on the floor of the Cin
cinnati Convention a few weeks be-
for the National failed:
"I can not understand the slightest
grounds for the criticism which Dr.
Warbasse is giving to the National
Co-operative Association. I highly
honor the men at its head and the
splendid work they are doing"; and
"If the National should fail it will be
due to this criticism."
These are the sort of people who
would say that they do not see the
slightest grounds for the surgeon
telling the patient that his leg is
broken; and if he don't get up and go
to work it is the surgeon's fault.
They would criticize a man for giv
ing the alarm when a house is on
fire.
WARNING CONCERNING THE
"CO-OPERATIVE LEAGUE OF
AMERICA" OF PENNSYL
VANIA
The name of The Co-operative
League is sometimes confused with
that of an organization calling itself
the "Co-operative League of America"
w'hich has been doing business in
several states. It represents itself to
be co-operative. It is not incorpo
rated in any state, but it has its
head office in Pittsburgh. It is a
"deed of trust" organization. The
ill-famed "Co-operative Society of
America," before it went into receiv
ership, recommended this organiza
tion very highly. We have already
described the nature of the deed of
trust. It is to provide trustees for
incompetents, infants and imbeciles;
and it places all control absolutely in
the hands of the few organizing
trustees. No honest business calling
itself "co-operative" should be at
tempted under this law.
This "Co-operative League of
America," of Pennsylvania, went into
New York state last year but was
forbidden to do business in that state.
It then went into Ohio and the west
ern states. It conducts a banking
business called "co-operative," and
makes loans to members for build
ing purposes at 3 per cent per year.
It recently attempted to open offices
in Illinois, but the attorney general
and the secretary of state prohibited
its doing so. Attorney General
Brundage of Illinois, in a letter to
the secretary of state, says: "It
appears that the said League is or
ganized as a common law trust, and
it has been repeatedly held by this
department that such organization,
when formed for business purposes,
is aganist the public policy of this
CO-OPERATION 69
state. The sale of its loan and home
purchasing contracts should not be
permitted by your department."
This concern has recently made ap
plication to the Ontario government
for the privilege of doing business in
Canada.
Because The Co-operative League
has often been confused with this
non-co-operative business enterprise,
we desire to warn our readers and all
Co-operators that we have nothing in
common. It was organized after The
League and is infringing upon The
League's priority in using the name.
It will not be permitted to do busi
ness in states which have an attorney
general and secretary of state who
are capable of protecting the citizens
from such organizations.
LAST WORD ON "CO-OPERA
TIVE SOCIETY OF AMERICA"
Harrison Parker's "Co-operative
Society of America" went into the
hands of a receiver last fall. How
much money the working people lost
by this non^co-operative scheme is
not definitely known, but some $11,-
500,000 was invested in it by inno
cent people who thought they were
joining a co-operative society.
We advise Co-operators that this
"deed of trust" concern has started
business again with two new trustees.
It claims that it has "reorganized";
but it is no more co-operative than 'it
ever was. It will not be permitted to
do business in states which have a co
operative law prohibiting such enter
prises.
CO-OPERATION SUCCEEDS
The above horrible examples are ex
ternal to the field of Co-operation.
The Co-operative Movement in the
United States is moving forward with
steady progress. The substantial so
cieties are joining The Co-operative
League. Among the members of The
League, failure is rare. Fundamen
tal work is bringing success.

70 CO-OPERATION
THE NORTHERN STATES LEAGUE
ORGANIZED
The following telegram has just
been received by The League:
Our convention a great success. Sixteen
societies represented, with a total member
ship of 10,500. Northern States Co-opera
tive League organized with headquarters in
Superior. Decided to hold next convention
in September at Minneapolis. Accept our
hearty thanks for your greetings to the
Convention. S. ALENNE, Sec'y.
Superior, Wisconsin.
Thus the steady and quiet work of
building a Co-operative Movement in
the United States goes on.
NEW YORK CO-OPS DO BUSINESS
OF $1,600,000
The Co-operative Associations in
New York City did a business of
$1,600,000 during 1921, according
to Louis Blachly, Director of the Co
operative Division of the State De
partment of Farms and Markets.
This figure does not include the
business done by the co-operative
housing societies.
While some weak organizations
went to the wall, the well-organized
groups continued to grow and pros
per. Two of the Co-operatives
which paid no dividends in 1920
made 8 per cent returns to their
members last year. The large Co
operatives showed a steady increase
in the number of members and the
amount of business done.
The largest Co-operative in New
York is the Finnish Co-operative
Trading Association. During 1921
its business was $269,000, including
receipts of $135,000 from its bak
ery, $58,000 from a meat market,
and $11,500 from a pool room. This
society has a membership of 1,800,
a gain of 300 for the year. A Co
operative restaurant is run by an
other association in the same build
ing. This restaurant did a business
of $70,000 last year. The members
of the Finnish Trading Association
also conduct several large apart
ment houses co-operatively.
A Co-operative bakery in Brook
lyn has a membership of 2,000, and
did a business of $175,000 for the
year. The Workmen's Circle oper
ates a bakery in the Bronx, the sales
during 1921 amounting to $206,000.
Six butcher shops are conducted by
the People's Co-operative Society, a
Jewish group. The business to
talled $225,000 in 1921, meat being
furnished below current prices.
COURSE ON CO-OPERATION
The Scranton Co-operative Asso
ciation, of Scranton, Pennsylvania,
is now conducting a study course on
Co-operation as a part of its educa
tional work. Martin Weber, the
manager of the store, is the instruc
tor. Thirty-one students are en
rolled and the average attendance is
twenty-five. The students consist
mostly of the Board of Directors of
the society, members of the Wom
an's Guild, and of the Educational
Committee.
The class meets every Friday
night in the store. The Syllabus for
a study course, prepared by The
League, is used as an outline. Son-
nichsen's "Consumers' Co-opera
tion," and Harris' "Co-operation,
the Hope of the Consumer," are
used as text-books.
SOCIETY DISTRIBUTES $12,000
Checks for more than $12,000 in
the form of savings-returns were
given out by the Soo (Michigan) Co
operative Mercantile Association in
amounts from $1.25 to more than
$360, at the ninth annual meeting of
the association.
More than 500 stockholders and
others interested attended the meet
ing. At the election of officers there
were 341 votes cast. The society has
398 members. This is close to 100
per cent, attendance.
The stockholders received five per
cent, savings-returns on the goods
they purchased during the year and
the non-stockholders received 2J/2 per
cent, on the amounts of their pur-
chases, the amount being paid to them
either in merchandise or in credit
toward the purchase of shares. The
stockholders also receive checks for
6 per cent, on their stock.
T. M. Ross, the president, told the
stockholders the need of expansion of
the organization, "Our bake shop is
inadequate, we need larger quarters,"
he declared. He suggested building
a new bakery on the rear of their
main store property and using the
space now occupied by the bakery to
enlarge the grocery lines. The work
ing capital of about $19,000 was
turned over 15 times during the past
year.
In 1921 the society did a business
of $309,000. In 1920 the income was
$365,000 on account of the higher
since then, the society did a bigger
have fallen at least thirty per cent,
prices existing at that time. As prices
business in 1921 than the previous
years, though the receipts fell. It is
operated strictly on the Rochdale
basis, is a member of The League,
and handles groceries, meat, coal, and
bakery products.
At the close of the meeting refresh
ments were served and dancing was
enjoyed for the remainder of the
evening.
FIRE INSURANCE AT WOOD-
RIDGE
It cost the farmers of Woodridge,
New York, last year less than one
cent for every hundred dollars of in
surance written on their property by
the Co-operative Fire Insurance Co.
of Sullivan and adjoining counties.
Compare this cost with your fire in
surance premium!
With $4,330,660 worth of fire in
surance in force at the end of Sep
tember, 1921, the expenses incurred
amounted to only $38,000, which in
cluded $27,000 in losses and only $11,-
000 for administrative and operating
expenses. Thirty-nine members re
ceived sums ranging from $5 to $4,-
850 for damages to their property
from fire or lightning. Since the co
operative insurance company com
menced business in 1913, fire and
CO-OPERATION 71
lightning losses of $114,721 have been
paid to members.
By the end of 1921 the co-operative
had $6,500,000 worth of insurance in
effect. Members are charged pre
miums based on the losses and op
erating expenses of the previous year.
It is estimated that the saving to the
Co-operators during 1921 amounted
to more than $79,000. There are now
1,900 policies in effect, and 1,015
members enrolled in the society.
Woodridge, New York, is the cen
ter for half a dozen prosperous Co
operatives, including two fire insur
ance companies, one auto insurance
company, and a credit union.
CLEVELAND DISTRICT LEAGUE
ORGANIZED
The seven co-operative enterprises
in Cleveland, Ohio, have formed a
District League in that city. The
following outline of work to be under
taken by the League is suggested:
1. Members are to be kept in close
touch with the state and national or
ganizations.
2. Uniform propaganda for co-op
erative societies is to be published
and distributed.
3. A more extensive city-wide ed
ucational program is to be planned
and carried out by the League.
4. The buying power of the vari
ous societies may be concentrated,
and a lower wholesale rate secured.
5. Promises of large returns on
money invested can be minimized and
the value of Co-operation emphasized.
The first immediate task under
taken was the sale of shares in the
City Co-operative Dairy, capitalized
at $100,000. The Cleveland District
League will aid in organizing the
new co-operative dairy, which is the
outgrowth of the recent milk strike
in that city. The District League
recommended to the City Co-opera
tive Dairy that no interest, or as low
a rate as possible, be paid on stock
issued by the dairy. Joseph C. Robb
of the B. L. E. Co-operative National
Bank was elected temporary Chair
man, and Edith Gwinn, temporary
Secretary.

72 CO-OPERATION
HUCKNALL, ENGLAND, INTER
ESTS THE CHILDREN
You will observe by the heading of our
letter that this Society was established in
1864, and, although by no means the
largest society in the Midlands, it is with
out doubt one of the most successful, and
has had a wonderful career.
We celebrated our Jubilee in 1914, with
a very big program, including a most suc
cessful Sunday service, for it was on that
particular date when the Society was estab
lished fifty years before The event was
most impressive and unique in every re
spect. Concerts and a special exhibition of
salable goods were held. All the day school
children in the district served by the So
ciety were right royally entertained, and a
special Jubilee dividend was paid to our
members at a rate of about 25 per cent in
advance of our usual quarterly dividend.
Before our program was fully completed
the great war broke put, and this before
the whole of the Jubilee money was dis
posed of. These celebrations gave us a
huge advertisement, and since then ours
has been a continuous line of success. We
may mention that when peace was cele
brated we entertained all the day school
children again on similar lines, the after
noon alone costing us about 450 pounds
($1,800), and with this we had another big
advertisement.
We would like to particularly point out
that we are one of the few Societies that
has made farming a success. We consider
that we have got one of the "show farms"
of the Midlands.
Yours, etc., J. C. HAWITT,
Gen. Sec. and Manager Hucknall Torkard
Industrial Provident Society, Ltd.
HOW BOSTON CO-OPERATIVE
BANK HELPS MEMBERS
Here are a few samples of what we do in
our Credit Union in Boston. One $50 loan
was made for a member to buy groceries
and household necessities in quantity at low
price and pay back to Credit Union not less
than $2 per week. A $50 loan was made
to a member whose wife was to have a
baby. When the doctor arrived he had the
money to pay on the spot. He is paying
back $2 each week. A $50 loan was made
to a member to buy winter clothing for
himself and mother, He is paying back $3
each week. A loan of $50 was made to en
able a girl member to have her teeth at
tended to and pay cash. She pays back
$2 per week. A $75 loan was made to a
member so he could pay back-rent for his
married sister whose husband had been out
of work three months and had been or
CORRESPONDENCE
dered out. He pays back $4 each week.
All our borrowers are paying up promptly.
We loan no money for buying luxuries.
Every borrower furnishes two endorsers,
and rf the loan is over $50 security is re
quired^ such as insurance policy, etc.
I wish space would give me a chance to
give you more cases. We are out to help
worthy members to get ahead, but do not
listen to any application for loans on sure
thing gambles in stocks, nor for a joy rid
ing auto. We have plenty of worthy cases
and could help more if we had more funds.
Our expenses since April 20, 1921, have
been only $23.20.
HARRY L. HASKELL,
Treasurer.
Union Workers Credit Union,
Boston, Mass.
NINE HUNDRED PER CENT
GROWTH IN ERIE
Our store business here has grown from
less than $300 per week a year ago to over
$2,700 per week now. During the year
1921 we showed a net profit of 30 per
cent, on our investment. There is no groc
ery in the city of Erie doing the volume
of business that our store is. Neither is
there any store whose business is so valued
and sought after by the jobbers.
H. O. HIRT, Manager.
Lake Erie Co-operative Association,
Erie, Pa.
(This society is a member of The League,
and it keeps the members loyal and in
formed on Co-operation by distributing the
"Home Co-operator.")
ENCOURAGEMENT FOR
MANAGERS
This is taken from a letter writ
ten to The League by the manager
of the Annfield Plain Industrial Co
operative Society, Ltd., England:
I may say if I'm spared until March I
shall commence my fiftieth year as man
ager. I commenced with a boy and myself
and we have now some 350 or more em
ployees, our turnover for 1920 being over
a million pounds ($4,000,000.)
Yours sincerely,
A. BROWN.
NOTICE
Persons having books on Co-opera
tion are requested to donate them to
The League.
CO-OPERATION
PUBLICATIONS
OF THE CO-OPERATIVE LEAGUE
HISTORICAL Per Copy Per 100
3. Story of Co-operation . ................................................9 .10 $6.00
7. British Co-operative Movement ........................................ .10 6.00
10. A Baker and What He Baked (Belgian Movement)...................... .05
38. Co-operative Consumers' Movement in the United States............... .05 4.00
TECHNICAL
4. Hew to Start and Run a Rochdale Co-operative Society.................. .10 4.00
5. System of Store Records and Accounts................................ .50
6. A Model Constitution and By-Laws for a Co-operative Society........... .05 2.60
8. Co-operative Education. Duties of Educational Committee Defined..... .10
9. How to Start a Co-operative Wholesale................................ .10
27. Why Co-operative Stores Fail .............. .......................... .02 1.00
2. Co-operative Store Management ...................................... .10
14. How to Start and Run a. Women's Guild................................ .05
MISCELLANEOUS
46. Producers' Co-operative Industries ................................... .10
11. Control of Industry by the People Through the Co-operative Movement... .10
12. Credit Union and Co-operative Store.................................. .05 1.75
34. Co-operative Movement (Yiddish) .................................... .02 IM
43. Co-operative Housing ................................................. .10
ONE-PAGE LEAFLETS
(One cent each; 50 cents per 100; $2.50 oer BOO; $4 per 1,000)
(1) Principles and Aims of the Co-operative League of America; (17) Do You Know Why You
Should Be a Co-operator; (20) Why Loyalty Is Necessary; (21) Cost and Crime of
Credit; (22) A Real Co-operator; (2E) Resolutions Adopted by A. F. of L.; (26) Factory
Workers, Co-operate!; (28) Do You Know About Co-operation in Europe?; (40) Have
You a Committee on Education and Recreation?; (44) What Is the Co-operative
Movement? Miscellaneous Educational Leaflets.
MONTHLY PUBLICATIONS
CO-OPERATION—(In bundle lots, $7.50 per hundred). Subscription, per year......... .$1.00
HOME CO-OPERATOR, 4 pages ................................................ $1 per 100
INTERNATIONAL CO-OPERATIVE BULLETIN (Pub. by The I. C. A.)...... .per year, $1.50
BOOKS
The following books are recommended as containing the best discussions of the modern
Co-operative Movement. They made be ordered through The League:
Bubnoff, J. B.: The Co-operative Movement in Russia, 1917.......................... .$1.25
Faber, Harald: Co-operation in Danish Agriculture, 1918.............................. 2.7B
Flanagan, J. A.: Wholesale Co-operation in Scotland, 1920............................ 2.00
Gebhard, Hannes: Co-operation in Finland, 1916...................................... 2.00
Gide, C.: Consumers' Co-operative Societies, 1921...................................... 2.50
Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, $2.00; paper
bound ........................................................................... -60
History of Co-operation in the United States. Vol. IV, Johns Hopklns University
Studies, 1888 ................................................................... 4.00
Holyoake, George Jacob: The History of the Rochdale Pioneers........................ 2.00
Howe, Fred C.: Denmark, a Co-operative Commonwealth, 1921.......................... 2.50
Maxwell, Wm.: History of Co-operation in Scotland, 1910.............................. 2.00
Nicholson, Isa: Our Story ............................................................ -SB
Powell, G. Harold: Co-operation in Agriculture. Macmillan ........................... 1.50
Redfern, Percy: The Story of the C. W. S............................................. 2.00
Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918....................... 2.50
Smith-Gordon: Co-operation in Many Lands, 1920...................................... 2.50
Sonnichsen, Albert: Consumers' Co-operation, 1919. Cloth bound, $1.75; paper bound... .75
Stolinsky, A.: The Co-operative Movement. In Yiddish................................ 1.00
Webb, B. and S.: The Consumers' Co-operative Movement, 1921........................ 6.00
Webb, Catherine: Industrial Co-operaticn, 1917 ...................................... 1.50
Woolf, Leonard: Co-operation and the Future of Industry............................. 2.00
Woolf, L.: Socialism and Co-operation................................................ 2.00
"The Co-operative Consumer" and "Co-operation," III (1917), VI (1920), VII (1921).... 1.25
Transactions of Second American Co-operative Convention, 1920....................... 1.00
The People's Year Book, 1922...................................................... .75
(Ten cents postage should be added for books which cost more than $2.00, and five cents
for the smaller books.)

THE CO-OPERATIVE LEAGUE OF AMERICA
(Member of The International Co-operative Allinace)
Executive Office: 2 West 13th Street, New York
An educational organization for teaching the history, principles, methods and aims of the
Co-orerative Movement and for the promotion of Co-operation in the United States.
Join The League and thus help promote the educational work of the Co-opera
tive Movement. Individual Membership, 1.00 a year.
Subscribe for CO-OPERATION
Formerly the "Co-operative Consumer." The Monthly Magazine of The League.
This Journal Is Not Published for Profit
Keep in touch with the Movement, §1.00 a year.
Co-operative Central Exchange
Wholesale Grocers and Jobbers,
Bakers
We supply goods to Co-operative Societies OX
We are owned and controlled by Co-operative
Societies.
We are organized to enable Co-operative Societies
to do collectively what they cannot do indi
vidually.
Co-operative Central Exchange
Offices, Warehouses and Plant:
Winter Street and Ogden Ave.,
SUPERIOR, WIS.
Co-operators* Ltd. Mutual Fire Insurance Co.
is now writing insurance in State of Wisconsin.
The Canadian Co-operator
Brantford, Ontario,
Canada
The organ of the Canadian Co-opera
tive Movement, owned by and con
ducted under the auspices of The
Co-operative Union of Canada.
Published monthly; 75c per annum
MOVING PICTURES
and
Stereopticon Lectures
may be rented from
CO-OPERATIVE I.EAGTJE OF AMERICA
S West 13th St., New York City
1. "Sort.* Examples of English Co-operation."
Moving pictures of factory processes (two
reels) ................................$5.00
2. "Co-operation in the United States."
With 53 Stereopticon views ........... .$3.00
3. "The Co-operative Movement in Rnsssia."
With 36 colored Stereopticon views. .. .$3.00
Co-operation in Scotland
In no part of the world is Co-operaiion further
developed, or more successfully practised than In
Scotland. If you wish to keep in touch, read
"The Scottish Co-operator"
(Published Weekly)
Subscription: Tear 12 sh.: half-year. 6 sh.
Address, 119 Paisley Road,
Glasgow, Scotland
THE PRODUCER
Issued Monthly Price 3d.
If you want to keep in touch with
business, organization, administra
tive affairs, and problems of the
British Co-operative Movement,
read THE PRODUCER.
Published by
Co-operative Wholesale Society, Inc.
1 Balloon Street, Manchester.
Post free 4 sh. 6d. a year.
The Trade and Technical Orean of British
Co-operation.
THE HOME CO-OPERATOR
A four-page magazine for
use in co-operative societies.
Issued monthly, in bundles, $1 per hundred.
Published by
The Co-operative League
Write to the Managing Editor, Albert Son-
nichsen, Willimatic, Conn.
(OOFCRATION
A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in vol
untary association, produce and distribute for their own use the things they need
Published monthly by The Co-operative League, 167 West Twelfth Street, 'New York City,
J. P. Warbasse, Editor. Price, $1.00 a year. Entered as second class matter, December 19,
1917, at the Post Office at New York, N. Y., under (the Act of March 3, 1879.
Vol. VIII, No. 5 MAY, 1922 1O Cents
THE COAL STRIKE
In 1919 the bituminous coal min
ers struck and the whole force of the
United States Government was used
against them. As to the states, in
every state where miners were on
strike the state government used
its power to defeat them. Cos
sacks rode them down, police clubbed
them, leaders were put in jail, courts
issued injunctions. The miners were
protesting against reductions of
wages. The public said that they
were wrong and should have gone on
working, content with their lot. If
that attitude could have been held in
the strike of 1919 by some, it cannot
be held by any in this present strike.
In this present situation the mine
owners have openly broken their con
tract of March 30, 1920. They have
refused to confer with the miners on
a new wage scale. By repudiating
their agreement they have defied the
miners and the consumers, and have
made the strike inevitable.
Now comes the interesting revela
tion. In 1919, when the government
could find some shadow of an excuse
to assume that the miners were in
the wrong, it was openly against
them and for the mine owners. But
now, when the miners are absolutely
in the right and the mine owners have
violated every precept of decency,
where does the U. S. Government
VITAL ISSUES
stand ? It goes as far as to administer
a mild verbal expression of disapprov
al to the mine owners, which costs no
body any money, and then maintains
a strict hands-off policy. If the work
ers had been guilty of such flagrant
dishonesty and breaking of contracts
as the mine owners have, the United
States Government would 'have treat
ed them like cattle; and everybody
knows it. But here is a case so fla
grant that even the press, which is
usually against the1 workers, is pretty
generally on the workers' side. The
government is not for the workers;
it is against them.
Undoubtedly public opinion in this
strike will be .strong enough to com
pel the government to take notice1,
and we may expect "hearings," "in
vestigations," and even demands of
settlement imposed upon the mine
owners.
This brings us to a fundamental
fact which every working man should
understand. Government has two
main functions. The first is to keep
itself alive—to perpetuate itself.
The second function is to protect the
privileges of the property-owning
minority. The government will al
ways be found favoring the interests
of property when they come in con
flict with human beings and human
life. The government is the cham
pion of property against labor; and

74 CO-OPERATION
it can pretty generally be expected to
play true to its obligations. The
sooner the working people under
stand these simple facts the sooner
they will proceed to solve this prob
lem, and the less seriously will they
take the antics of the gentry at
Washington.
Now talk is turning to government
ownership of the coal mines. There
is delusion in this proposition. It
may be better than the present sys
tem of ownership and exploitation by
the coal barons (nothing could be
worse); but it does not solve the
problem. What the government owns,
the people do not own. Let us make
no mistaks about this. Under gov
ernment ownership, coal would not
be mined in the interest of the peo
ple, but in the interest of the govern
ment. The people and the govern
ment are two different things. They
always have been been; they always
will be.
The mining and distribution of coal
will not be upon a just and scientific
basis until the consumers own the
mines. And when the consumers
own the mines coal will be mined and
distributed for use—for the service
of the people who are the owners.
The less the government has to do
with it the better it will be for the
people.
WE ARE ONTO GENOA
The conference of Versailles in
1919 assembled the victors of the
War for Democracy. George, Wilson
and Clemenceau had the greatest op
portunity three men ever had to give
the world peace, prosperity and hap
piness. They did just what this mag
azine said they would do. The three
of them acted in perfect accord to
keep alive the hostilities of the world.
There was never a moment of dis
agreement on the main point. They
all insisted on preserving the1 eco
nomic system that makes war neces
sary. Had their avowed purpose
been to perpetuate human injustice
and suffering they could not have hit
upon plans more fitted to that end.
When the generation of childlike and
deluded victims of these three men
has passed away, history will write
them down as betrayers of the simple
and confiding humanity that once
trusted them with its life and honor.
Before we realized the depth of
perfidy to which these men would
sink, this magazine advocated that
Co-operators of all of the countries of
the world should sit at the Versailles
conference. That having been de
nied, we advocated a non-political
world congress of representatives of
the consumers. Finally such a co
operative congress was held at Basel
in 1921. But it was too late to affect
the "peace settlement"; the damage
had been done.
Later came the "Arms Confer
ence" of the victorious Powers, at
Washington. Conditions in Europe
were so bad that something had to
be done to make a showing of getting
the nations together. War and the
costs of the preparations for war had
become so expensive that the bank
ruptcy of all the great militaristic
nations was threatened. The Wash
ington conference of diplomats and
militarists did the best it could. But
thoughtful people did not take it
seriously. This gathering of war-
makers could not be in the interest
of peace. Any treaties that came
out of it could have no power for
peace. But this Washington confer
ence did have one significant result:
It made war cheaper by scrapping
some hundred and twenty floating
relics of barbarous antiquity. Mak
ing war cheaper, however, does not
prevent war; it makes war more pos
sible. The Washington conference
did not take any concern to .scrap the
poison gas outfits. Such an act would
really have interfered with war.
The second thing it did was to
create the "five-power treaty," which
carried with it the right of five for
eign nations to loot the Far East by
agreement.
On the whole, war was brought
nearer by the Washington confer
ence.
The pathetic side of this whole
business is that European Co-opera
tors keep on taking these conferences
seriously. Our esteemed contem
porary, The Co-operative News, was
full of hope for Versailles; and with
childlike credulity ,saw in Washing
ton the hope of the great blessings
that Versailles failed to deliver. Now
it is discussing the international con
ference at Genoa with the same old
British .seriousness, as though the
editor had not an Irish name!
Let Co-operators bear in mind that
the same gentry will go to Genoa as
went to the two other conferences.
They will tolerate the representatives
from Russia because they must.
They may take action looking to the
establishment of better trading re
lations with Russia and Germany for
the sake of saving themselves; but
their 'hands are absolutely tied
against any action that will establish
fundamental economic justice in the
world. The old crew are scuttling
the ship, and they will go down with
it. Co-operators may be invited to par
ticipate in these conferences. But
when they call upon Co-operators it
will be too late to save them. We will
come only to bid them "good-bye."
A new light will be shning in the
heavens.
Simple souls now cry, "On to Ge
noa." Once the refrain was "On to
Versailles," "On to Washington."
Co-operators above all people in the
world should be wise to the great
world tragedy now being played at
these conferences. Co-operators at
least should be onto Genoa!
FOOD FOR THOUGHT AND USE
One of the largest co-operative so
cieties in England was started by
working people who were constantly
made sick by the food they were buy
ing at the private groceries. Finally
when they found that a grocer was
putting plaster of Paris in the flour
and that an old lady nearly died from
eating it, they thought the time had
CO-OPERATION 75
come to act. From the day they
started their society, the people of
that community have enjoyed better
health.
The co-operative bakeries in Ger
many have a special apparatus for
taking the impurities out of the flour.
The private bakeries do not use this
process at all. What becomes of the
impurities? The co-operative bak
eries cart it away by the truck load;
the customers of the private bakeries
eat it.
Mr. Alfred W. McCann has written
an instructive book entitled, "Starv
ing America." It is pretty hard read
ing for any American citizen who
pays taxes and eats three meals a
day. It either makes him mad or
sick at the .stomach to learn what is
put over on him in this land of free
dom. It makes him sick to read of
the poison the consumer gets for the
glorious sake of profits. One does
not have to think very hard to realize
that he takes his life in his hands
every time he sits down at the table.
Mr. McCann estimated that 3,000,000
people are made ill in this country
every year with adulterated food.
Surprising and unexpected sickness
is always turning up. We are always
hearing of the mysterious cases of
"ptomaine poisoning," "died of acute
indigestion," "intestinal colic," "bo
tulism," "dysentery," "dyspepsia" and
"chronic headache." Emerson knew
it fifty years ago when he said: "It
is only necessary to ask a few ques
tions as to the progress of the arti
cles of commerce from the fields
where they grow, to our houses, to
become aware that we eat and drink
and wear perjury and fraud in a
hundred commodities."
It is the same today. In Money's
book on "Riches and Poverty," he
says: "Sham, shoddy and make-be
lieve—these are erected in the form
of houses, sewed up in the form of
suits, packed in tins to mock child
ren as food, made the sole occupation
of millions of quite honest people."
Dr. Lewis B. Allyn asserts that be
tween eight and fifteen per cent of

76 CO-OPERATION
the food sold is debased. Mr. Gaston
G. Nettes, president of the Interna
tional Pure Food Association, asserts
that 40 per cent of the food entering
New York should be thrown away.
It is humorously related that the
investigation of ten articles in a gro
cery store conducted by the health
authorities, discovered poison in nine
of them: the only one that did not
contain poison was "Radam's Rat
Powder." Be this as it may, there is
every reason to adulterate and de
fraud so long as the motive in .sell
ing to the consumer is to make pro
fits from him. Outside of the con
science of the trader and the busi
ness advantages in selling good foods,
the only thing that stands between
the consumer and slow starvation or
slow poisoning is the law with its in
spectors, fines and prisons. This is
not civilization. A state of society
fit to be called civilization would not
require these utterly unnecessary
things.
That the whole of society, the con
suming public, is at the mercy of pro
fit-making business in the very sub
stances of life, is an unspeakable
tragedy. The great forces of society
that are fighting to maintain these
conditions are the agencies of dark
ness; the light of a better day is in
the hands of those who are striving
to institute the production and distri
bution of food for use.
THE EDUCATED SECRETARY
When the .secretary of a co-opera
tive society, immediately upon his
election, proceeds to educate himself
in Co-operation so that he may un
derstand the subject better, the Move
ment may take heart. On another
page in this magazine is a letter from
the secretary of a society in Rhode
Island in which he expresses this pur
pose, "in order that I may render to
my fellow Co-operators a more effici
ent service." This is fine. Would
that all officers of our societies might
feel this responsibility and move to
grasp the opportunities for larger ser
vice to their fellow men and to them
selves !
Faithful and conscientious officers
are necessary to success. But above
all, they must understand Co-opera
tion. Not only has our Movement a
philosophy and a glorious history,
but it has a technic which must be
understood and mastered in order to
win success. Success can be guaran
teed by education. It is .such men as
this secretary who are winning the
success for Co-operation in the United
States.
MAKING THE PICTURES
The job of The Co-operative League
in the United States is to make Co
operation succeed. The first import
ant thing is that the people shall
know what Co-operation looks like
when they see it.
Once upon a time a little girl was
drawing a picture. Her mother asked
her what she was drawing. "God,"
replied the child. "But," said the
mother, "you can not make a picture
of God; nobody knows how God
looks." "Well," replied the child,
they will when I get this picture fin
ished."
The people in this country may not
have seen Co-operation. They may
not know how it looks or how it should
look. But The League is going to
keep at its task of making a picture
and visualizing true Co-operation un
til all shall know it when they see it.
THE LEAGUE'S SCHOOL
In the April number of this maga
zine was published the schedule of
the first course of lectures to be giv
en in the Co-operative League House,
beginning May 2d. All of the ar
rangements are completed. The open
ing of the new building with this
course of lectures is another indica
tion of the progress of co-operative
education in the United States.
Steadily, without haste, but without
ceasing, the fundamental work is be
ing done.
CO-OPERATION 77
SEEN HERE AND THERE
The Fate of a Building Guild
In Kittering, England, was a guild
of builders. It took contracts to
build houses. When the town built
a library about twenty years ago the
guild got the contract. But it lost
so much money on the job that it
had to go out of business. To save
it, the Kittering Consumers' Co
operative Society "took it over."
The society created a building de
partment in order to give these men
employment. In 1901 it bought a
farm estate adjoining the town for
$50,000, and set its builders to
work building houses. The society
put up 180 houses and sold them to
its members at cost. It retained a
few to rent to members. These are
rented for $2.50 a week net.
This building department 'has
been in operation ever since. The
Superintendent is paid $2,000 a
year. There are seventy artisans,
representing all of the building
trades. The society keeps them
busy.
This society is practically the
whole town. When anybody wants
a carpenter, mason, or plumbing
work done he employs the society
to do it. The municipal political
government and profit business are
fading out. The Co-operative So
ciety is taking their place.
Savings-Return or No
I heard the question of paying a
savings - return discussed at the
Carlsbad Congress of German
Czecho - Slovak Co - operative Socie
ties in August, 1921. Some dele
gates were in favor of paying a
good dividend. They said that if
the members can buy cheaper from
private stores they do so and leave
the society; but a savings-return
would hold them. On the other
hand, it was shown that, although
in 1919 the societies paid a savings-
return of 4 per cent, when in 1920
they paid only 2 per cent, in that
year they not only did not lose mem
By J. P. W.
bers, but they gained members. The
members know the co-operative
goods are better, and therefore
cheaper. Being guaranteed good
goods, and knowing that they are
connected with a great Movement
for human betterment amounted to
more than a little dividend.
During the war these societies
acquired an enormous membership,
"who are in no sense of the word Co-
operators," said the speaker. "They
joined because the societies could
serve them better than anybody
else. They will go out if we do not
continue to serve them better—or
unless we can convert them into Co-
operators."
It is interesting to note how all
questions in Co-operation finally
come back to the big question of the
need of education in the real mean
ing and objects of Co-operation.
The Belgian Co-operators and the Was-
The Belgian Co-operators had
some interesting experiences with
the invaders of Belgium during the
war. When the Germans came into
Ghent the German General Staff
looked around for the best building
for their headquarters, and picked
the Co-operative Festal Palace. It
is a beautiful new building, opened
in 1914, with two large auditoriums,
restaurant and meeting halls. The
Ghent Society had to move out of it.
They organized their moving picture
show in another building nearby.
The German officers used to stroll
down to the show every night, and
the Co-operators always gave them
some good, shocking propaganda.
There has been a lot of publicity
given to the deportation of Belgians,
but there is one side of the matter
that most people do not know about.
The deportees were largely people
who were being penalized for hav
ing a social conscience. The Bel
gians who were deported were
mostly Socialist Co-operators. The
deportations were made largely

78 CO-OPERATION
from that district that had 90 per
cent Socialist votes. These people
were the most dangerous to leave in
Belgium. They were the people
who were most capable of influenc
ing the German soldiers not to fight.
They were sent to Germany really
for the purpose of getting them out
of Belgium and out of contact with
the German soldiers. In Germany
they suffered severely. For their
refusal to work they were badly
treated; and now they are still bit
ter against the Germans, while the
Belgian farmers, who made money
selling their produce at big prices to
the German army, are prone to
speak in more approving terms of
their old enemy.
When the German army evacu
ated Belgium the Co-operative So
ciety of Brussels celebrated by
hanging out forty red flags on its big
building and one Belgian flag. This
made the patriotic Belgian 100
per centers mad, and they have not
forgiven the Co-operators yet.
As a result of the excitement of
the war, Anselle, the "Father of Bel
gian Co-operation," got elected to
Parliament. He knew that there
was not much to be done in the po
litical field, but he used his position
very efficiently for co-operative
propaganda. As he said to me: "I
Lehighton, Pennsylvania, is a
small railroad town in the Lehigh
Valley, between Wilkes-Barre and
Allentown. The Lehighton Co
operative Association, a society 95
per cent railroad men, was hitched
up with the ill-fated "National Co
operative Association" that went
bankrupt in 1920. Early in 1921
the little association in Lehighton
found itself stripped of the $11,000
capital with whic'h it had started
business; the stock of goods in the
store was worth only $2,600, the
receivers for the Hoboken fiasco
A STORY IN COAL
By CEDRIC LONG
make speeches out of the window;"
that is, he talked to the people of
Belgium instead of to the Parlia
ment.
Whatever the war did to Belgium,
it ended with a bigger and stronger
Co-operative Movement than had
existed before.
Another effect of the war was on
trade unionism. In 1914 the trades
unions had 160,000 members; in
1921 the membership was 730,000.
In 1914 the Catholic unions had
80,000 members; in 1921 they had
140,000 members.
War, if it does bring the exploit
ers of the people to the top, at least
exposes the wiles of the exploit
ing system, and prompts the people
to know that they must get together
to protect themselves.
No Credit
The chairman of the board of
directors of an English co-operative
society said to me: "We will not
give credit; we would sooner give
the member the money outright
than to give credit." As a result of
this policy the society has so much
money in its treasury that when un
employment comes it is glad to have
members draw out some of it. They
spend it with the store, and so in
crease the turnover.
were suing them for the debts of
the wholesale, and the majority of
their members had lost confidence
in the Co-op, and were trying to
find a method of getting back some
of the money they had invested.
Co-operation in Lehighton looked
like a 100 per cent lost cause.
But there were two assets that
these 385 shareholders and the rest
of the town had not figured on. The
store had a live young manager who
not only knew the grocery business
from several years of experience in
the chain stores, but who likewise
was a thorough Co-operator at
heart. And the directors of the as
sociation, under the leadership of
W. D. Hontz, Wm. Begal, Wm. Smo-
yer and the other officers, were men
who refused to acknowledge that a
discouraged membership, the loss
of their capital, and a lawsuit meant
bankruptcy. Therefore, business
went on as usual.
But "business as usual" did not
satisfy such men very long. A bold
step forward was necessary if Co
operation in Lehighton was to win
back its lost prestige. And here
begins the story in coal.
There are three or four coal deal
ers in this town. They all waxed fat
off the coal business. Therefore the
directors of the co-operative began
to investigate, and they found that
the coal consumers were being
robbed.
The Lehigh Valley Coal Com
pany and other large companies re
fused to sell them coal. The men
from Lehighton tanked up their
Fords with more gas, began a sys
tematic tour of the coal fields, and
finally came upon a little independ
ently owned colliery, where the di
rectors were already assembled to
decide whether they had not better
shut down for lack of business. The
two directorates, one looking for a
customer, the other looking for coal,
talked business, and soon came to
an agreement.
How do you start in the coal busi
ness without capital? These men
did not bother with such abstract
questions; they met in turn each
difficulty as it came along. Having
ordered one car of coal, a few of the
Co-operators signed personal notes
at the bank and paid for the car.
Having no place to put their coal,
they went to a fellow townsman
who owned a plot of land near a
railroad siding, and bought the land
for a promise of future payment.
Then, with cement and sand and
stone, and all the volunteer labor
they could use (railroad men get
long vacations and have much leis
CO-OPERATION 79
ure time these days) they built four
large, open bins near the siding. A
portable elevator which would carry
the coal from the car into the bins
and from the bins into a truck, was
procured, just as the coal had been,
by a small note and easy payments.
Meanwhile the freight question
came up. Lehighton is a Lehigh
Valley town. Yet all the coal sold
there was being brought in over the
N. J. Central. The Co-operators
went to the freight agent of the
Lehigh Valley. "We're workers on
the L. V. R. R. We are buying coal
and we want to bring it in over our
own road. What can you do for
us?" The agent gave them a low
freight rate, and a few days later
the same railroad company sent
around a man who offered them coal
scales at cost, to be paid for as soon
as the money was available.
And so started the Co-operative
coal business April, 1921. The pri
vate dealers had been selling 2,000
pounds to the ton. The new dealers
sold 2,200 pounds to the ton. The
private dealers had been making
more than $4 a ton profit. The Co-
operators lowered the price be
tween $2 and $3, gave the custom
ers the extra 200 pounds, to which
they were entitled, sold the highest
quality coal instead of the mixture
of slate, dirt and coal that others
sold, and altogether saved the con
sumer about $4 on every ton of coal
bought.
By the end of the year the Co
operative Association had sold 97
carloads (4,200 tons) of coal, they
had paid for the elevator, owed
nothing to the bank, owned their
own land, their own bins, and had
paid off one-third of the value of
their new coal truck. The inde
pendent coal company up country
had given up all thought of closing
their colliery, and many of the other
coal companies in the same district
had come around trying to sell coal
to the Co-operators they once de
spised. Two men are employed reg
ularly getting coal to the customers,

80 CO-OPERATION CO-OPERATION 81
and the Co-operative Association is
doing the largest coal business in
town (more than 10 cars a week on
the average). The Association has
saved the people of Lehighton over
$14,000 by reducing the price and
giving the long ton.
So begins the story. But Co-oper
ation never stops at one commodity.
A few weeks ago these same Co-
operators decided that milk at 14
cents was much too expensive for
their town. They called a meeting
and talked about starting in to dis
tribute milk. Next day the private
milk dealers, seeing the Co-opera
tive coal truck rushing about town,
decided to take the warning, and
milk dropped to 12 cents.
A few weeks later the Co-opera
tors decided that they wouldn't
charge 13 cents for bread which
cost them only 10 cents. They sold
at 11 cents. The baker threatened
to deprive them of bread altogeth
er; and he was the only baker deliv
ering in Lehighton. But the Co-
operators refused to heed the threat,
kept the price at 11 cents, and when
this baker stopped his delivery to
them they imported bread from Al-
lentown—and still sold at 11 cents.
Furthermore, they promise that if
the old baker ever comes back, he
will not be able to get into the store!
When the representative of The
Co-operative League stopped at Le-
highton and went to the store he
found many of the directors and
several of the other members busy
out beside the garage. They were
just nailing the last boards up
against some fifty tons of ice. Last
year the private ice dealers charged
the store $300 for ice; this year the
members hauled and stored their
own ice, and the total expense was
less than $70.
Meanwhile, the store is holding
its own, despite hard times, and al
though unemployment has played
havoc with its business, there is a
slight saving each quarter. The
surplus-saving from the first nine
months of the coal business amount
ed to $4,347.26.
None of the banks in Lehighton
is paying more than 3% or 4 per
cent interest this last year, and the
First National paid no interest what
ever. The Lehighton Co-operative
Association, meanwhile, paid 6 per
cent. For, although their $11,000
original capital was all lost (except
a scant $2,600), their membership
was quite disgusted with the whole
co-operative business, and such
other liabilities as lawsuits, united
opposition of other merchants and
chain stores, etc., had reduced their
workingmen's organization to a
laughing - stock about town, yet
there still remained the solid foun
dation stones upon which true Co
operation is always builded, and
which make failure impossible; effi
cient and devoted management on
the business side, and determined,
wise, self-sacrificing leadership on
the part of the directors. Financial
liabilities never interfere with the
growth of a Co-operative organiza
tion which has these two assets.
THE PURITY OF PATERSON
Paterson, New Jersey, has 136,000
population. It is the home of one of
the most successful Co-operatives in
the East. In the city which has been
the battleground of many spectacular
industrial struggles between the silk
mill owners and the workers, where
labor has been beaten time and again
in the attempt to better its conditions
at the point of production, a remark
able organization of consumers has
been perfected, which has won much
ground in its steady fight against the
profit system. Two thousand con
sumers are members and owners of a
Co-operative society that is supplying
$250,000 worth of bread and $100,000
worth of meat yearly, to the consum
ers of Paterson and vcinity. The
three auto trucks of the Purity Co
operative Society daily deliver bread
to towns within a radius of many
miles of Paterson, while two wagons tiling. Sanitary chicken coops are
make deliveries in the city. Hun bult into the building, as the tem
dreds of miles are daily covered by porary abode of the many live chick
the vehicles of the society.
ens kept on hand to be slaughtered
A visit to this co-operative society for the kosher trade.
stuns one with the size of the un The conditions of labor are import
dertaking. The bakery of the Purity ant. Forty-two butchers and bakers
Co-operative Society is a large, up-to- are employed at the union scale of
date three-story plant, equipped with wages. The weekly wage bill amounts
the latest machinery. The Co-opera to $1,600. The bakery is run In
tive is the next to the largest bakery shifts, but no one works more than
in Paterson; its property and equip eight hours a day. Though bakeries
ment are worth $150,000. The great are usually sweat-shops, the co-opera
double ovens daily bake 5,000 loaves tive bakery is sanitary and an ideal
of bread, and 24,000 rolls. Gigantic workshop. A shower bath is provid
machines automatically weigh, sieve ed for the workers' use at the end of
and mix 500 pounds of flour at a their shift.
time. The ovens are located on the Since current prices are charged in
first floor, the mixing machinery on most departments, a large surplusthe
second floor, and the third floor saving is on hand at the end of each
is used as the storeroom for flour. year. It is interesting to note what
When a representative of The use has been made of this. When the
League visited the plant there were society was organized in 1905, it sold
thousands of bags of flour piled up in goods at cost price, plus a slight over
orderly fashion all over the huge head charge. Whatever remained
storeroom. There were a dozen car was set aside for the growth of the
loads of flour on hand), valued at enterprise. By this means, the co
$22,000. The co-operative bakery operative's resources have grown, un
consumes a carload of flour every til they are now worth $175,000,
week. Flour is secured direct from though it has only $8,000 subscribed
the mills, and the co-op, gets the bene in capital stock. During the war, the
fit of all discounts by paying cash. Federal Food Control Board compelled
The bakery distributes its product the co-operative bakery to sell at the
direct to consumers by means of prices charged by the profiteering
house to house deliveries, and through bakers. This compelled the co-opera
sales at its bakery. A branch store tive to adopt the Rochdale system, in
is maintained, where bread and gro order to return the difference be
ceries are sold. The bulk of the tween cost and selling price to its con
trade, however, is through sales to sumers. Coupons were printed on the
retail stores, both private and co bread wrappers, and these coupons
operative, in Paterson and outlying were redeemable at the end of the
towns. Profiteering by stores is pre year.
vented by the bakery, which fixes the The members of the society were
selling price of bread. True to its not long content with this arrange
name, the co-operative turns out the ment. They felt that the money
purest of products.
saved through their co-operative en
In addition to its model bakery, the terprise should be used for the social
Purity Co-operative Society operates good, instead of being distributed
the cleanest, and perhaps the largest back to the consumers as savings-re
butcher shop in town. The turnover turns. Knowing of the social and ed
of the butcher shop last year was ucational activities carried on by the
$90,000; and this year it is doing bakeries in Belgium, they resolved to
business at the rate of $100,000. A put the earnings of the society to
glance at the shop reveals a scrupul work for the good of all the members.
ously clean store, lined with spotless Accordingly they abolished the "divi-

82 CO-OPERATION CO-OPERATION 83
dend system" at the end of 1921, and
they now plan to invest the earnings
in a large vacation farm where the
children of the members may enjoy
a vacation of two weeks, with good
food, air and sunlight, free of charge.
The enormous bakeries of Belgium,
with their educational, recreational
and insurance activities radiating
from them, are thus being used as a
model by the Paterson Co-operators.
The story of this society is not
complete without some mention of its
educational activities. Last year $1,-
000 was contributed towards educa
tional work. On April 7th, of this
year, the first public mass meeting
of a series of several scheduled, was
held by the society in the auditorium
of one of the high schools. Over 800
people were present. Cedric Long,
of The Co-operative League, William
Kraus of the Bergenfield, N. J., co
operative society, and Abraham Ship-
lacoff, President of the Brownsville
Co-operative Bakery, of New York,
spoke before an enthusiatic audience
on the meaning of Co-operation.
The co-operative society is the nuc
leus of all the forward-looking groups
in Paterson. There has not been a
strike in Paterson since 1905 that
has not been supported whole-heart
edly by the co-operative bakery. Only
last month, three tons of flour were
donated by the Purity Co-operative
Society to the mill strikers of Rhode
Island.
"What is everybody's business is
nobody's business," says the cynic
who is opposed to collectivism in any
form. But the two thousand mem
bers of this co-operative society are
the driving and directing force be
hind this vast enterprise. They elect
their officers, and at their quarterly
meetings, they fix the policies that
govern their business. Two Boards
of Directors are elected by the mem
bership; one for the management of
the bakery, and the other for the
butcher shop. The efficient and loyal
manager, Simon Rothman, is a valu
able servant of the society. Group
solidarity and the technique of indus
trial democracy are being developed
by means of this co-operative enter
prise, which is slowly but surely dis
placing private business in Paterson.
N. Y. CREDIT UNIONS UNITE
The New York State Association of
Credit Unions was formed in 1921, in
recognition of a need of a representa
tive body which would act as a clear
ing house for the discussion of prob
lems aggravated by the steady in
crease in the growth of credit unions
in New York City. Its object is (1)
to spread the doctrines of the credit
union movement more generally a-
mong the public, (2) to furnish a
forum for discussion of problems of
mutual interest to its members, (3)
to study proposed and to prepare
needed legislation affecting the credit
union movement, (4) to bring the or
ganizations in the State of New York
into closer relations with each other,
(5) to foster measures looking to the
organization of a central credit union,
and (6) to do any and all things which
may be of benefit to credit unions.
The union is beginning to function
actively through its especially ap
pointed committees. The Legislative
Committee will, at the next general
meeting, submit a report on suggest
ed amendments to the New York
State Credit Union Law. The Pub
licity Committee, with a view to
spreading the growth of credit
unions, is canvassing various groups
in New York City where the organi
zation of credit unions is considered
feasible. If the results warrant it
there will be a systematic effort to
follow up the correspondence by per
sonal contacts. The Advisory Com
mittee is compiling an accounting sys
tem and interest tables for which
there is an urgent need.
PRACTICAL ADVICE
ARRANGEMENT OF THE STORE
Make the entrance easy. Keep
the windows clean and attractive,
and display goods in an uncrowded
manner. Change the display each
week. Limit the display to six
lines, three large and three small.
A bold center is attractive. Use
price tags and smart descriptive
signs. Do not dress too close to
window glass. If the window is
high, fix a sign below it outside or
a bulletin board on which you can
advertise daily any specials you
may have. Fix a ringed curtain
of bright material on a rod four
or five feet from the door of the
window, if there is one. In the case
of a high window a strong shelf
might be fixed above the curtain rod
for a display. Do not keep out the
light from the store by high stacks
of things in the window.
No set rules can be laid down for
the arrangement of goods, but usu
ally the goods that are wanted by
the largest number of customers are
placed on shelves near the front.
Cereals should be on top shelves,
soaps, etc., on bottom. Salt, sugar,
etc., should be \y2 feet above the
floor. Canned goods and bottled
goods may be on the middle shelves.
Keep fruits, vegetables, soups and
other canned goods together. Dairy
goods should always be in a sepa
rate department. Fancy and staple
articles may be near the front or on
special tables near the front for dis
play. Put slow movers on a special
table in the center, and change fre
quently. Systematic arrangement
prevents confusion and untidiness.
Aim to make the store the most at
tractive in town. Goods s'hpuld be
plainly priced. Sectional price tags
are useful.
The shelving should be no more
than 6 feet high to make it easy to
reach goods. If possible have the
shelves deep enough to take a whole
case of goods. Fixtures should be
simple, but good, serviceable and
kept clean. The scales and cash
register are best near the center of
the store. Bulk goods should be
kept under the shelves or counters
near the scales. Some stores use
racks in the center, made of several
shelves, if crowded for space. If
house furnishings are kept they
should be in one part by themselves.
The store room must be well or
ganized. If possible make similar
arrangements of goods as in store
itself. Do not leave broken cases
around in store room.
If you have any extra space use it
for advertising purposes for co
operative mottoes, and do not waste
a bit of space. Have a bulletin
board in a conspicuous place for
special notices and news items. A
table for literature and a few chairs
are desirable.
SOUND ADVICE FROM THE
CANADIAN UNION
I note that many isolated societies
in your country have been failing
during the last six or eight months.
Many years' experience of co-oper
ative activities in this country has
taught me that if societies do not
associate for mutual counsel and
profit by the experienc'e of their
predecessors, it is hopeless to ex
pect satisfactory development. Our
great trouble is in bringing home
this fact to people responsible for
the administration of co-operative
societies. This remark applies not
only to those outside the organized
movement, but even to some inside.
In some cases boards of directors
persist in blundering on, but make
a practice of approaching us when
they are in trouble, when we are
then expected to work miracles.
Doubtless you have noticed that
at the Congress of the Canadian so
cieties last year the delegates were
determined upon satisfactory busi
ness policies being followed, and
that central supervision should be
exercised. Now, the Union is ask-

84
ing for monthly reports which are
being summarized and circulated
the following month, with informa
tion, which may be contributed by
any society, of general advantage.
We are hoping that to become ac
quainted with weak spots as they
arise and make representations
thereon before losses accumulate.
My feeling is that one of the
greatest stumbling blocks to co
operative solidarity is the non-co
operative manager who seeks to
dominate his board and is jealous of
influence being exercised by the
Union upon his directors; and yet
it is in such cases that independent
guidance, advice and information is
most needed if the society is perma
nently to remain in the field.
In the early days in the Move
ment in Europe many serious mis
takes were made, but Co-operators
had the common sense to profit by
their experience and endeavor to
avoid them in the future. There
would seem to be a serious defi
ciency of this policy in North
America. It seems very necessary
on this continent to impress upon
would-be Co-operators in the early
days how little they know and how
much they have to learn in applying
the principles to which they are be
coming attached.—George Keen,
General Secretary the Co-operative
Union of Canada.
A BADLY ADVISED RAIL
BROTHERHOOD
The United Brotherhood of Main
tenance of Way Employees and Rail
way Workers, with headquarters in
Detroit, was put in the hands of a re
ceiver by order of the Federal Court
according to advices recently receiv
ed. An order restraining the Broth
erhood from withdrawing its bank
deposits has been issued. The re
ceiver has been ordered by the Court
to take possession of all property of
the Brotherhood including the money
on deposit in the Brotherhood of Lo
comotive Engineers' Bank at Cleve
CO-OPERATION
land. This is a part of the sad story
of one of the railroad unions that
went into what it called "co-opera
tive" production. This magazine has
already reported the failure of its
various factories for the manufacture
of gloves, underwear and hosiery.
Liberal magazines and socialist publi
cations found great satisfaction in
these ventures into manufacturing
and gave them much approval and
publicity as great "co-operative un
dertakings." The Brotherhood had
an exhibition of its products at the
"Farmer Labor Co-operative Con
gress" in Chicago in 1920, and their
representatives were among the cen
tres of interest.
The one and only voice that ad
vised this Brotherhood of its mistakes
was the Executive Board of The Co
operative League. It went so far as
to have a representative of the Board
secure an interview with the promo
ting officials of the Brotherhood at
Chicago and again at Syracuse, N. Y.,
to explain to them that the venture,
which they were calling "co-opera
tive," was not co-operative, to warn
them of its defects and to show them
how they might make it succeed. But
since all of the labor, socialist and re
form papers, and organizations were
boosting their plan, they turned a
deaf ear to The Co-operative League.
The losses to this one union amount
to something around $1,500,000, an
other "co-operative failure" was reg
istered, and now as a result, the whole
organization suffers the humiliation
of having its tangible assets attached
by a court order.
We still continue of the opinion
that, as there is an organization of
experts such as The League provides,
whose business it is to know about
the technic of co-operative adminis
tration, their advice should be sought.
But when in the interest of the work
ers we are compelled to force our ad
vice upon an enterprise, calling itself
"co-operative," that enterprize will
do wisely to give most serious consi
deration to that advice.
CO-OPERATIVE BAKERIES FEED
STRIKERS
The co-operative bakeries of
Massachusetts have made provisions
for supplying bread free of charge
to the striking textile workers of
Pawtucket Valley, Rhode Island, to
carry on their struggle against star
vation as long as their fight lasts.
Three months ago the absentee
owners of the cotton mills of Rhode
Island decreed a 54-hour week and
a 20 per cent reduction in wages, on
top of a previous reduction of 22 V&
per cent. There seems no alterna-
ive for the workers but to leave
their looms as a protest against
starvation wages.
At once the co-operative bakeries
in Massachusetts got busy. Two
thousand loaves of bread were do
nated by The Labor League Co
operative Bakery of New Bedford,
Mass. Then the Conference of
Massachusetts Co-operative Baker
ies swung into action. The confer
ence is a working federation of
seven prosperous co-operative bak
eries, organized principally among
the Jewish consumers of Massachu
setts, though they are open for all
consumers to join.
Provisions were made by the Con
ference for a contribution to the
strikers of a steady supply of bread
baked in the bakeries of the co
operatives. The New Bedford Co
operative Bakery is supplying 2,000
loaves each week, the Brockton
bakery 1,000, the Worcester bak
ery has already sent 500 loaves, and
will send more, the Providence bak
ers sent 1,000 loaves, and the co
operative bakeries of Lynn, Haver-
hill and Lawrence are all giving
their share. Contributions secured
among the Jewish consumers in
Providence, Boston and New Bed
ford, in order to enable the co-oper
ative bakeries to turn out sufficient
bread for the strikers.
From Paterson, N. J., came 500
bags (three tons) of flour, as a do
CO-OPERATION 85
NEWS AND COMMENT
nation from the Purity Co-operative
Bakery. This baitery has also sup
plied twelve cases of canned soup.
Besides the thousands of mill
strikers in New England who are
now being supplied bread free of
charge by the co-operative bakeries
of the workers, the Conference of
Co-operative Bakeries of New Eng
land is also sending a carload of
flour for famine relief in Russia.
A vigorous program of co-opera
tive education is going forward.
Educational meetings are held bi
monthly. Arrangements are being
made for literature, speakers, and
movies to be supplied by The
League.
Newspapers in Massachusetts
have given much publicity to the
relief work of the co-operatives.
Photographs of the many truck
loads of bread sent to the strikers
by the co-operatives have appeared
in the metropolitan press. Through
the relief work carried on by the
co-operative bakeries, many con
sumers are learning the value of Co
operation, both as a commissary
during strikes, and as a means of
eliminating profit in the supply of
the necessities of life.
UTICA BAKERY GROWS
The Utica Co-operative Society, of
Utica, New York, made progress dur
ing the past year, though it felt the
pinch of hard times. The sales for
1921 were $105,597, or a decrease of
$12,000 over the sales of the previous
year. But retail prices fell at least
30 per cent during 1921, so that even
though the value of sales fell off, the
amount of business done was larger.
There was a surplus-saving of $2,021
for the year's operations, which was
distributed to the 375 members as in
terest on shares. A reserve and edu
cational fund were also put aside.
The most encouraging thing about
the Utica Society is the steady
growth of its bakery business. In
January, 1921, its bakery sold 13,281

86 CO-OPERATION
loaves of bread. The demand for Co
op. Bread grew steadily, until in June
they were selling 25,319 loaves. By
the end of the year, the monthly sales
were 28,774 loaves. In all, 156,643
loaves of Co-op Bread were distri
buted in 1921.
The society owns $41,540 worth of
real estate; owns machinery and fix
tures valued at more than $7,000, and
has $15,000 worth of goods in stock.
CO-OPERATIVES AND THE BUSI
NESS DEPRESSION
Reports coming in from all over
the country indicate that co-opera
tives are weathering the financial
storm that has brought bankruptcy
for many private businesses. While
general business bankruptcies, ac
cording to R. G. Dun & Co., in
creased 141 per cent during the first
half of 1921, as compared with the
same period of 1920, there does not
seem to be any sign that co-opera
tives are as hard hit as profit-mak
ing business.
Here are three bits of news reach
ing the office of The League the
same day, from three different sec
tions of the country, showing how
Co-operation is holding its own.
From L. S. Herron, of the Farmers'
Educational and Co-operative Union
of Nebraska, comes this comment:
Our Farmers' Union stores are mostly
pulling through all right, though many of
them are burdened with debt. There have
been only two or three outright failures
in the whole state among the 125 stores.
Some of the stores have gone right through
the depression without losing a dollar, and
even making good surplus-savings all the
time. Loyal patronage and good manage
ment will turn the trick anywhere.
At the same time David Diggory,
Secretary of the Society in Pueblo,
Colorado, which is doing good edu
cational work among its member
ship, writes us as follows:
We are doing as fine as can be expected.
We are holding our regular weekly meet
ings and they are productive of good re
sults. We feel sure of the ultimate end.
From Little Rock, Arkansas, we
learn from L. W. Lowry, the Man
ager of the Co-operative Laundry:
We are doing better than the other fel
lows. We are adding new customers each
week and keeping our old ones. Although*
all classes of business have felt the general
depression, yet we have held our own. We
feel every confidence in our continued suc
cess this summer.
WAUKEGAN EXPANDS
The Co-operative Trading Company
of Waukegan, Illinois, which supplies
one-fourth of the community with
groceries, meats, milk, etc., issued a
good report on last year's business.
The total business done in the dairy,
grocery and meat departments,
amounted to $157,559 during 1921.
On this amount there was a surplus
saving for the membership of $5,594.
It is interesting to note how this was
distributed. The Reserve Fund re
ceived $550; the Educational Fund
$500, and a contribution of $150 was
made to Russian Famine Relief.
There remained a balance of $4,344,
which was distributed to the mem
bers as a patronage savings-return.
Eight per cent savings were paid on
milk purchases. The dairy is taxed
to its fullest capacity, to meet the
demand for service. It is planned to
erect a new dairy building.
The Waukegan society is one of
the best in Illinois. It is affiliated
with The Co-operative League and
with the Co-operative Central Ex
change, of Superior, Wisconsin.
MOUNT OLIVE'S RECORD
Mount Olive, Illinois, also has a fine
record. The report for the last six
months of business of the Mt. Olive
Co-operative Society is now at hand,
showing gross sales during that per
iod of $39,104, an increase of $6,080
over the previous half year. The
average sales per month of this so
ciety amount to $6,517. Its surplus-
savings during the last six months
totalled $1,808. A 3 per cent savings-
return was paid to members in addi
tion to 3 per cent interest on capital;
$830 remains as undivided savings.
This society issues a lively bulletin
to its members every month, and is
doing good educational work.
BLOOMINGTON BUYS BUILDING
One year ago the Blpomington, Il
linois, Co-operative Society moved in
to a building it had purchased. Mak
ing allowances for the gradual ex
pansion of the business, it was be
lieved that the space would be ample
to accommodate the store for many
years. Within a year, the business
had increased 60 per cent, and it was
imperative to find larger quarters.
The society has now bought the
property next door for $38,000, and
with the new establishment it will be
one of the largest retail stores in
town. The annual business of the
society in 1921 was $161,000. The
store handles groceries, fresh and
cured meats, men's clothing and furn
ishings, shoes, kitchen utensils, and
coal.
Since the society was organized,
four years ago, it has returned to its
members in savings-returns the en
tire amount of their investment, and
18 per cent in addition. The society
has paid an average .savings-return
each year amounting to 28^' per cent
of the invested capital, in addition to
4 per cent interest. The Rochdale
principles are strictly adhered to.
The Bloomington Co-operative So
ciety has the support of organized la
bor but like all consumers' co-opera
tives, it is open for all consumers to
join. It has a membership of 500.
Though thousands of dollars were lost
in Bloomington by dupes who sub
scribed to fake co-operatives, this
genuine co-operative society, affili
ated with The Co-operative League,
warned its members and saved their
money. The society has carried on
constant educational work to spread
the message of Co-operation to all
consumers.
GALESBURG NEVER PASSED A
DIVIDEND
The Galesburg, Illinois, Society is
one of the oldest co-operatives in Il
linois, organized in 1910 and incorpo
rated in 1911 under Illinois laws. It
organized in Chicago, before Illinois
CO-OPERATION 87
had a law providing for co-operative
societies, so it incorporated under the
regular Corporation Act, and chang
ed to the Co-operative Act as soon as
it became a law. It had stores in Ke-
wanee, Quincy, Chicago, and Staun-
ton, Illinois, and local organizations
from Florida to Nebraska.
At a stockholders' meeting held
some ,six or seven years ago, the na
tional organization was dissolved and
the Galesburg store retained the cor
porate name, Consumers Alliance Na
tional.
During the whole period the so
ciety has never passed a dividend,
and it has lost very few members.
August 14, 1919, the Galesburg So
ciety opened her second store, and on
April 15, 1920 it opened their third
store. Last year the Knox County
Co-operative Society was formed for
the purpose of selling fuel, but the
stockholders felt that even though
not competitive, there was no need of
two distinct co-operatives in the city.
An amalgamation was therefore
formed, and the name of the com
bined organization was changed to
The Galesburg Co-operative Society.
LECTURES ON REBUILDING
THE WORLD
The Get-Together Club of the Com
munity Church of New York has held
a series of lectures on "Rebuilding
the World" in which Co-operation
played a large part. The lectures
were held at the Community Church,
Park Avenue and 34th Street, as fol
lows:
January 10, "Meaning and Objects
of Consumers' Co-operation," Cedric
Long;
February 14, "European Co-opera
tion as I Saw It," Agnes D. Warbasse;
March 14, "Snap-shots of Co-opera
tors at Work in the United States,"
(Illus. Lecture), Mabel W. Cheel;
April 11, "Co-operation as the Road
towards Real Internationalism," Jas.
P. Warbasse;
May 9, "How to apply Co-operative
Effort to Community Church Activ
ities," Cedric Long.

88 CO-OPERATION
NEW PLANT FOR FRANKLIN
CREAMERY
The Franklin Co-operative Cream
ery Association, of Minneapolis has
outgrown its present quarters in less
than one year. When the association
began business March 25, 1921, no
one thought that they would need a
larger plant for a long time. But the
success of the co-operative creamery
far exceeded the expectations of the
Co-operators. Whereas the output
of the plant amounted to eighteen
wagon-loads in the beginning, it now
takes seventy-four wagons and
trucks, loaded to capacity, to supply
the customers. The capacity of the
plant is twice as large as it was last
year, but is not sufficient to meet the
growing demand. It now has 22,000
customers and shareholders.
A new plant is about to be erected
on the North Side of the city. The
new building will be 122 by 145, and
will be two stories high. It will be
twice the size of the present crowded
quarters. The construction work will
be carried on by the Union Construc
tion Company, reorganized by the
building trades of Minneapolis.
OKLAHOMA FARMERS SAVE
Co-operation is the great help in
times of adversity. Hard times on the
farm has done more to promote Co
operation than all the talking in the
country. Farmers who used to "get
along well enough" by themselves are
now anxious to co-operate with their
neighbors. The farmers of Oklahoma
have found that Co-operation pays.
They saved $30,000 last year on pur
chasing a million pounds of binding
twine through the Farmers' Ex
change. They bought co-operatively
over 400 cars of coal at a saving of $3
a ton. The 15,000 bushels of seed po
tatoes they needed cost them $22,500
less than the best price from private
dealers, and a further saving of $16,-
125 was made on 43 cars of eating po
tatoes purchased this fall. The farm
er should be a Co-operator if, for no
other reason than that he spends all
he earns.
CO-OPS AID RUSSIAN RELIEF
Co-operatives all over the country
are contributing money or goods to
the relief of famine in Russia.
The Co-operative Central Ex
change, of Superior, Wisconsin, at its
recent annual meeting voted to con
tribute $600 from its treasury, for
Russian relief work.
From far away Idaho comes word
that the Co-operatives are ready to do
their part toward stemming the tide
of death and suffering in famine-
stricken Russia. All profits on sales
throughout the entire month of Feb
ruary were pledged for purposes of
Russian relief by the Consumers'
Store of Boise, Idaho.
Several societies have voted to de
vote all their surplus-savings to Rus
sian relief, instead of distributing
them as savings-returns.
A NINETY-YEAR-OLD CO-OPERA
TIVE
The Lockhurst Lane Co-operative
Society of Coventry, England was
founded in 1832, and claims to be the
oldest co-operative now in existence.
The society came into existence with
nine members, who finally invested
five pounds each by paying in from
two to six pence weekly. Member
ship was to be limited to forty per
sons and profits were to be divided
equally, irrespective of the amount
of each member's patronage. The an
nual trade for 1832 amounted to $3,-
500.
For many years it ran on principles
different from the Rochdale societies,
which came into existence much later.
As it was expected by the secretary
of the society, the society "was as
much like a co-operative society of
today as chalk is like cheese." In
1865 it was decided to change the pol
icy to conform with Rochdale 1 Co
operation, and it has been conducted
as a Rochdale co-operative since.
Little progress was shown until the
society completely changed its tac
tics and adopted the Rochdale prin
ciples. Since then it has experi
enced a remarkable growth. By 1900
it had a membership of 670, a capital
of $70,000, and an annual trade of
$82,500, on which there was a return
to members of about $15,000.
Within ten years more progress
was shown. By 1910 there were 1,524
members, $130,000 in capital, an an
nual trade of $215,000, on which there
was a saving for members of $40,500.
In 1920 the society had a membership
of 4,116, $220,000 in capital, its trade
for the year amounted to $850,000,
and returns were made to members
of $65,000 for the year.
The society owns six grocery shops,
a coal wharf, its own stables for its
vehicles, a shoe shop, clothing shop,
three dry goods shops, a vegetable
store, a farm, and a bakery. In 1920
the bakery turned out a quarter of a
million 4-pound loaves of bread, or a
million pounds of bread. The land
and buildings of the society are val
ued at $85,000. The society main
tains a bank for its members and has
cottages for rent.
For ninety years this co-operative
has been serving the consumers, and
each decade finds its membership
larger, its resources stronger, and its
business activities increased, while
private business in contrary is shrink
ing in volume every year.
THE FUTURE OF IRELAND
George Russell, the intellectual
leader of the Irish Co-operative Move
ment, has recently made this signifi
cant statement: "I should prefer the
stability of national life to be main
tained by the existence of such bal
ancing forces in society rather than
by the artificial methods of senates
and venerable ancients to offset the
vehement radicals elected to move
democratic assemblies. No govern
ment in the world has hitherto trust
ed the people it governs. I am suffici
ent of an anarchist to have a dread of
the state which is rarely a fountain
of lovable or desirable life. I hope to
see in Ireland, some thousands of self-
governing economic communities,
minute nations in fact, leaving but
little for central government to do
for them."
CO-OPERATION 89
INSURANCE IN GREAT BRITAIN
The Co-operative Insurance Society
of Great Britain, the joint Insurance
Department of the English and Scot
tish C. W. S. is steadily crowding out
the private insurance companies. In
1921 the C. I. S. took in 19 per cent
more in premiums than in the pre
vious year. The total assets of the
business amount to $10,000,000. Al
most every conceivable variety of in
surance is written by the society.
The industrial life department alone'
issues 10,000 policies every week.
The steady growth of the co-opera
tive insurance business has alarmed
the profiteering insurance companies.
Agents of the latter companies go
out of their way in slandering the
Co-operative Insurance Society. Anon
ymous leaflets have been discovered,
which misrepresent and belittle the
C. I. S. But "every knock is a boost,"
and more and more of the insurance
business of Great Britain is being
•swallowed up by the C. I. S.
FRENCH DRINK WINE
The French Co-operative Whole
sale Society (M. D. G.) has 200 tank
railroad cars for bringing wine from
the vineyards into their wine vaults
in Paris. Last year they spent 32,-
000,000 francs on wine, and con
sumed 8,000,000 gallons.
BERKS, PENN., SAVES MONEY
Twenty-two thousand dollars were the
savings gained by Berks County, Pa. Co-
operators during the year 1921. This in
cludes 12 enterprizes. That Bag of Corn
Meal has grown some, as reports show.
The new year adds another enterprize to
the list, the Workers' Credit Union of
Berks County. It started with $70.00 cap
ital and by the end of the first six weeks
had $1,050 capital paid in. It had out
loans amounting to $860, used to pay off
loan sharks, save an increase in price of
land to a member by prompt payment on
it, buy 50 barrels of flour for a co-opera
tive bakery at a substantial saving, etc.
In spite of the industrial depression, pro
gress was made during the year, to be
an example for other workers to follow.
Reading, Pa. FRED M. MERKEL.

90
CORRESPONDENCE
JACKSON, TENN., PROSPERS
We have a co-operative society here that
I feel very proud of. March 1, 1922 was
the end of our second year's business. Our
first year's business was $115,000, and
our second year was $114,500. (With the
fall in prices during that time, this repre
sents a gain in business done.) We find a
great deal of good information in the mag
azine CO-OPERATION.
The society has sent out checks repre
senting a savings-return of 2 per cent on
purchases from July 1, 1921 to December
31, 1921, and interest at 3 per cent on
capital stock of the Society. We are pay
ing to the shareholders about $1,200 in
savings-returns and interest. Our pros
pects are bright for the future if we only
remain loyal to the cause. It will only be
a short time until our lodge room will pay
over half of our rent bill, and of course
that will be that much more to go into our
surplus-savings. The only reason our busi
ness is not twice or three times as large as
it is, is because the producers and consum
ers are not loyal to their own interests.
There are other individuals that they pre
fer giving their money to, rather than
keeping it themselves.
Now for the sake of those that toil, let
us get together, stay together, and pull to
gether for the cause of Co-operation, for it
is the quickest and surest way for us to
reap the full benefits of our labor.
Jackson, Tenn.
E. S. MANLEY,
President,
Madison Co-operative Society.
THE EDUCATED SECRETARY OF
THE NEWPORT SOCIETY
Having been elected Secretary of the
Union Co-operative Association, and desir
ing a better knowledge of the Movement
than I now possess, in order that I may
render to my fellow Co-operators a more
efficient service, I am taking this oppor
tunity to ask of The Co-operative League
such assistance as you may be able to fur
nish me along the lines of educational lit
erature to myself and suggestions for the
betering of Co-operation in this city.
We are considering the issuing of a bi
monthly mimeographed letter to all of our
members, which should be in the nature of
an educational course. Any suggestions
you may advance will be gratefully re
ceived. TIMOTHY J. McCAFFREY.
Newport, R. I.
CO-OPERATION
HELP A FRIEND
Make real Co-operators by getting sub
scriptions to this magazine. People who
understand Co-operation are the hope of the
world.
STATEMENT OF THE OWNERSHIP, MANAGE
MENT, CIRCULATION, ETC., REQUIRED BY
THE ACT OF CONGRESS OF AUGUST
24, 1912
Of CO-OPERATION published monthly at New York,
N. T. for April 1. 1922.
State of New Tork
County of New Tork, ss.
Before me, a notary public In and for th» State
and county aforesaid, personally appeared J. N.
Perklns, "who, having been duly sworn according
to law, deposes and says that he Is the busi
ness manager of the CO-OPERATION and that the
following is, to the best of his knoweldge and be
lief, a true statement of the ownership, manage
ment (and if a dally paper, the circulation), etc.,
of the aforesaid publication for the date shown in
the above caption, required! by the Act of August
24, 1912, embodied In section 443, Postal Laws and
Regulations, printed on the reverse of this form,
to wit:
1. That the names and addresses of the publisher,
editor, managing editor, and businsss managers
are:
Publisher, The Co-operative League of America,
2 West 13th Street, New Tork City
Editor, James P. Warbasse,
2 West 13th Street, New Tork City
Managing Editor, Albert Sonnlchsen,
2 West 13th Street, New Tork City
Business Manager, J. N. Perkina,
2 West 13th Street, New Tork City
2. That the owners are: (Give names and addresses
of individual owners, or, if a corporation, give Its
name and the names and addresses of stockholders
owning or holding 1 per cent or more of the total
amount of stock.)
The Co-operative League of America,
2 West 13th Street. New Tork City
James P. Warbasse, President,
2 West 13th Street, New Tork City
A. P. Bower, Vice-Presldent
2 West 13th Street, New Tork City
Waldemar Niemela, Treasurer,
2 West 13th Street, New Tork City
(Organization members, 1,000.)
3. 7*hat the known bondholders, mortgagees, and
other security holders owning or holding 1 per cent
or more of total amount of bonds, mortgages, or
other securities are: (If there are none, so state.)
None.
4. That the two paragraphs next above, giving the
names of the owners, stockholders, and security hold
ers, if any, contain not only the list of stockholders
and security holders as they appear upon the books
of the company but also. In cases where the stock
holder or security holder appears upon the books of
the company as trustee or in any other fiduciary re
lation, the name of the person or corporation for
•whom such trustee is acting, is given; also that the
said two paragraphs contain statements embracing
affiant's full knowledge and belief as to the circum
stances and conditions under which stockholders and
security holders who do not appear upon the books
of the company as trustees, hold stock and secur
ities in a capacity other than that of a bona fide
owner: and this affiant has no reason to believe that
any other person, association, or corporation has
any interest direct or Indirect In the said stock,
bonds, or other securities than as so stated by him.
5. That the average number of copies of each is
sue of this publication sold! or distributed, through
the mails or otherwise, to paid subscribers during
the six months preceding the date shown above is
.......... (This information Is required from dally
publications only.)
J. N. PERKINS,
Business Manager.
Sworn to and subscribed before me this 27th day of
March, 1922.
WALTER C. CAMPBELL,
(Seal) (My commission expires,
March SQth, 1922.)
CO-OPERATION
PUBLICATIONS
OF THE CO-OPERATIVE LEAGUE
HISTORICAL Per Copy Per 100
3. Story of Co-operation .................................................j .10 $6.00
7. British Co-operative Movement ........................................ .10 600
10. A Baker and What He Baked (Belgian Movement)...................... '.05
38. Co-operative Consumers' Movement in the United States............... .OB 4.00
TECHNICAL
4. How to Start and Run a Rochdale Co-operative Society.................. .10 4.00
6. System of Store Records and Accounts................................ .50
6. A Model Constitution and By-Laws for a Co-operative Society........... .05 2.60
8. Co-operative Education. Duties of Educational Committee Defined..... .10
9. How to Start a Co-operative Wholesale................................ .10
27. Why Co-operative Stores Fail ......................................... .02 1.00
2. Co-operative Store Management ...................................... .10
14. How to Start and Run a Women's Guild................................ .05
MISCELLANEOUS
46. Producers' Co-operative Industries ................................... .10
11. Control of Industry by the People Through the Co-operative Movement... .10
12. Credit Union and Co-operative Store.................................. .05 1.7B
34. Co-operative Movement (Yiddish) .................................... .02 1.26
43. Co-operative Housing ................................................. .10
ONE-PAGE LEAFLETS
(One cent each; 50 cents per 100; $2.50 per 500; $4 per 1,000)
(1) Principles and Aims of the Co-operative League of America; (17) Do You Know Why You
Should Be a Co-operator; (20) Why Loyalty Is Necessary; (21) Cost and Crime of
Credit; (22) A Real Co-operator; (25) Resolutions Adopted by A. F. of L.; (26) Factory
Workers, Co-operate!; (28) Do You Know About Co-operation in Europe?; (40) Have
You a Committee on Education and Recreation?; (44) What Is the Co-operative
Movement? Miscellaneous Educational Leaflets.
MONTHLY PUBLICATIONS
CO-OPERATION—(In bundle lots, $7.50 per hundred). Subscription, per year......... .$1.00
HOME CO-OPERATOR, 4 pages ................................................ $1 per 100
INTERNATIONAL CO-OPERATIVE BULLETIN (Pub. by The I. C. A.)...... .per year, $1.50
BOOKS
The following books are recommended as containing the best discussions of the modern
Co-operative Movement. They made be ordered through The League:
Bubnoff, J. B.: The Co-operative Movement in Russia, 1917.......................... .$1.2B
Faber, Harald: Co-operation in Danish Agriculture, 1918.............................. 2.7B
Flanagan, J. A.: Wholesale Co-operation in Scotland, 1920............................ 2.00
Gebhard, Hannes: Co-operation in Finland, 1916...................................... 2.00
Gide, C.: Consumers' Co-operative Societies, 1921...................................... 2.60
Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, £2.00; paper
bound ........................................................................... .60
Holyoake, George Jacob: The History of the Rochdale Pioneers........................ 2.00
Howe, Fred C.: Denmark, a Co-operative Commonwealth, 1921.......................... 2.50
Maxwell, Wm.: History of Co-operation in Scotland, 1910.............................. 2.00
Nicholson, Isa: Our Story ............................................................ .26
Powell, G. Harold: Co-operation in Agriculture. Macmillan ........................... 1.50
Redfern, Percy: The Story of the C. W. S............................................. 2.00
Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918....................... 2.BO
Smith-Gordon: Co-operation in Many Lands, 1920...................................... 2.50
Sonnichsen, Albert: Consumers' Co-operation, 1919. Cloth bound, $1.76; paper bound... .76
Stolinsky, A.: The Co-operative Movement. In Yiddish.............................,.. 1.00
Webb, B. and S.: The Consumers' Co-operative Movement, 1921........................ 6.06
Webb, Catherine: Industrial Co-operation, 1917 ...................................... 1.50
Woolf, Leonard: Co-operation and the Future of Industry............................. 2.00
Woolf, L.: Socialism and Co-operation................................................ 2.00
"The Co-operative Consumer" and "Co-operation," III (1917), VI (1920), VII (1921).... 1.25
Transactions of Second American Co-operative Convention, 1920................... . 1 00
The People's Year Book, 1922...................................................... .75
(Ten cents postage should be added for books which coat more than $2.00, and five cent*
for the smaller books.)

THE CO-OPERATIVE LEAGUE
(Member of The International Co-operative Allinace)
167 West 12th Street, New York
An educational organization for teaching the history, principles, methods and aims of the
Co-operative Movement and for the promotion of Co-operation in the United States.
Join The League and thus help promote the educational work of the Co-opera
tive Movement. Individual Membership, 1.00 a year.
Subscribe for CO-OPERATION
The Monthly Magazine of The League
Keep in touch with the Movement, $1.00 a year.
This Journal Is Not Published for Profit
Co-operative Central Exchange
Wholesale Grocers and Jobbers,
Bakers
We supply goods to Co-operative Societies ONLY
We are owned and controlled by Co-operative
Societies.
We are organized to enable Co-operative Societies
to do collectively what they cannot do indi
vidually.
Co-operative Central Exchange
Offices, Warehouses and Plant:
Winter Street and Ogden Ave.,
SUPERIOR, WIS.
Co-operators' Ltd. Mutual Fire Insurance Co.
is now writing insurance in State of Wisconsin.
The Canadian Co-operator
Brantford, Ontario,
Canada
The organ of the Canadian Co-opera
tive Movement, owned by and con
ducted under the auspices of The
Co-operative Union of Canada.
Published monthly; 75c per annum
MOVING PICTURES
and
Stereopticon Lectures
may be rented from
CO-OPERATIVE LEAGUE OF AMERICA
167 West 12th St., New York City
1. "Soii« Examples of English Co-operation."
Moving pictures of factory processes (two
reels) ................................$5.00
2. "Co-operation in the United States."
With 68 Stereopticon views ........... .$3.00
3. "The Co-operative Movement in Russsla."
With 86 colored Stereopticon views... .$3.00
Co-operation in Scotland
In no part of the world is Co-operation further
developed, or more successfully practised than in
Scotland. If you wish to keep in touch, read
"The Scottish Co-operator"
(Published Weekly)
Subscription: Year 12 eh.: half-year, 6 sh.
Address, 119 Paisley Road,
Glasgow, Scotland
THE PRODUCER
Issued Monthly Price 3d.
If you want to keep in touch with
business, organization, administra
tive affairs, and problems of the
British Co-operative Movement,
read THE PRODUCER.
Published by
Co-operative Wholesale Society, Inc.
1 Balloon Street, Manchester.
Post free 4 sh. 6d. a year.
The Trade and Technical Organ of British
Co-operation.
THE HOME CO-OPERATOR
A four-page magazine for
use in co-operative societies.
Issued monthly, in bundles, $1 per hundred.
Published by
The Co-operative League
Publishing Office, Willimantic, Conn. Al
bert Sonnichsen, Managing Eitor.
I
(WRMION
A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in vol
untary association, produce and distribute for their own use the things they need
Published monthly by The Co-operative League, 167 West Twelfth Street, New York City,
J. P. Warbasse, Editor. Price, $1.00 a year. Entered as second class matter, December 19,
1917, at the Post Office at New York, N. Y., under ,the Act of March 3, 1879.
Vol. VIII, No. 6 JUNE, 1922 10 Cents
VITAL ISSUES
WHEN WILL THE REVOLUTION
COME?
Some people who call themselves
"radicals" are working for the revo
lution. But they can save them
selves the trouble, the capitalists are
doing it for them. And it is coming
as suiely as this country is ruled by
the powers of finance. The danger
is that the working people will have
no adequate economic system ready
to take its place when the present
system goes to smash.
If the people really want things
changed, there is a way to change
things. It is by patiently going to
work and educating themselves to un
derstand economics and collective
mass action, and how to carry on the
affairs of the world in a different way.
The trouble with the labor move
ment in the United States is that it
really approves of the present profit-
making economic system. It believes
in the doctrine of master and servant.
Yet it proceeds to be a bad servant by
asking always for more wages. More
wages means higher prices, and
higher prices demand more wages.
This means periods of high prices
and high wages, and periods of low
prices and low wages. But the in
crease of wages is given after prices
go up; while wages start down before
prices go down. So the wages get
away from Labor as fast as they are
made. Between times, enough un
employment is thrown in to keep
Labor docile. When prices are low
Labor has not enough money to buy
much of anything. When wages are
high the workers put some money in
the bank, and it is borrowed by the
capitalists to speculate with and
make prices 'high.
Labor needs to get a new view of
things. It needs to get a vision of
something beyond wages. It needs to
take a stand for a reorganization of
the whole economic system upon a
different basis, and then deliberately
go at the job and reorganize it.
When the workers get education in
the fundamentals of economics and
the significant events in history, they
will then be found starting labor
banks, credit unions, co-operative so
cieties, housing societies, workers'
schools, and people's houses. And out
of the training that they will get in
running these things will come the
men and women who can carry on in
dustries for the people.
This is a long program. It means
a long pull and a long look ahead. But
it is the winning program. The old
system is strongly rooted in in
dustry, in the government, in the
homes, in the schools, and in the very
minds of the people. It will not be
destroyed by men; it will destroy
itself. Then should come co-opera
tive reconstruction.
1

92 CO-OPERATION
THE FARMERS' UNION TEACHES
LABOR
There are in the United States two
national co-operative educational or
ganizations, which are sound and
well-established, and which have a
history of accomplishments. These
two organizations are The Co-opera-"
tive League and the Farmers' Educa
tional and Co-operative Union.
All sorts of fanciful co-operative
organizations have set themselves up
from time to time for national recog
nition. They have now all passed
into limbo—or into a receiver's hands
—and the field is left at last exclu
sively to two true co-operative organ
izations. The responsibility which
rests upon them is very great.
The Farmers' Union dates back to
1892. It has members in thirty
states. It is a special organization
devoted to the special industry of
agricultural workers; but since that
industry exists in every state, the
Farmers' Union .should be found in
every state. The important fact con
cerning the Union, is that it is not a
producers' organization, aiming ex
clusively at getting higher prices or
larger compensation for its members;
but it devotes attention to educating
the farmers to organize as consum
ers as well as producers. It teaches
them how to unite their bargaining
power, not only in marketing the
products of their labor, but also in
purchasing their personal, farm and
household supplies. This fact con
nects the Farmers' Union with the
great Co-operative Movement of the
world. It is succeeding. It goes on
while other farmers' organizations
appear and disappear. It represents
a sound application of fundamental
principles.
Other crafts of workers in the
United States could learn a lesson
from this organization. The great
trade unions, which are giving atten
tion exclusively to getting better pay
and better conditions for their mem
bers, should at the same time be
carrying on education to teach these
same members how to protect the
purchasing power of their pay after
they get it. Every trade union or
ganization should be carrying on co
operative education.
Fake co-operative schemes have
met with a cold reception whenever
they have approached the Farmers'
Union or Co-operative League so
cieties; but they have had little trou
ble in selling their gold bricks to
trade unions—to the tune of fifteen
or twenty million dollars in the last
three years. The trade unions need
to take a page from the Farmers'
Union book and learn Co-operation.
When every trade union has a com
mittee on Co-operation and gives real
attention to this subject, trade un
ionism will place itself upon a much
stronger basis than that upon which
it now rests.
THE FEDERAL RESERVE BANK
About one-third of all the banking
business of the United States is in
New York State, and the New York
Federal Reserve Bank conducts about
one-third of the business of the en
tire Federal Reserve System. The
report of the New York Federal Re
serve Bank is, therefore, a pretty
fair index of the rest of the country.
It has been generally assumed the
federal banking system would elim
inate the profiteers of the old bank
ing systems, but as a matter of fact,
it has not. The report for the year
1921 for the New York District
shows that the net profit earned on
the capital was 97 per cent. This
may seem to be a good profit; but in
1920 the profit was 215 per cent.
It is instructive to observe that
the "profit on capital, surplus and de
posits" was 3.4 per cent. Modern
banking claims that the profits are
made on the money put in by stock
holders, but not on the money of de
positors. The earnings for the year
were $35,000,000; and the current ex
penses for earing this amount were
$7,000,000. It is in this matter of
overhead that co-operative banking is
able to show a great economy. This
is an added reason why the banking
business of the European co-opera
tives is forging steadily ahead. It not
only gives the surplus savings to the
patrons instead of to the investors,
but it is conducted more economic
ally.
The striking fact about the Fed
eral Reserve Bank is that it makes
huge profits out of the depositors'
money and gives the profits to invest
ors. This is neither fair nor good
business. It is not fair, because it
is the method that creates a privi
leged non-serving class; it is not good
business, because it is the method
that is upsetting the world, and if it
goes on the whole structure of mod
ern civilization is threatened.
CO-OPERATIVE SOCIETIES
SHOULD INCORPORATE
We have frequently emphasized
the importance of incorporating co
operative societies. Some members
are inclined to view the matter of
incorporation as legalistic red-tape.
They are mistaken. Incorporation
of a co-operative society organized
for business purposes protects each
and every member against the pos
sibility of being individually liable
for the full amount of the debts of
the association.
A recent case in California (Web
ster vs. San Joaquin Fruit and Veg
etable Growers' Protective Associa
tion, an unincorporated marketing
association), illustrates the law on
this subject. A suit was brought by
a creditor of the association against
the company and against the indi
vidual members of the association.
The creditor recovered an individ
ual judgment against certain of the
members. They appealed on the
ground that they were not person
ally liable for the debts of the co
operative association. The case
went to the California Court of Ap
peals, which affirmed the judgment
of the lower court, stating the law
as follows:
"While as between the members
of an unincorporated association,
each is bound to pay only his numer
CO-OPERATION 93
ical proportion of the indebtedness
of the concern, yet as against the
creditors, each member is individu
ally liable for the entire debt, pro
vided, of course, the debt is of such
nature and has been so contracted
as to be binding on the association
as a whole. . . . An unincorporat
ed association organized for busi
ness or profit is in legal effect a mere
partnership so far as liability of its
members to third persons is con
cerned ; and accordingly each mem
ber is individually liable as a part
ner for a debt contracted by the as
sociation."
The ruling that members of unin
corporated co-operatives are liable
as partners applies not only to Cali
fornia, but to every state where the
common law has not been modified
by special legislation. In effect, it
means that if a co-operative is rot
incorporated, every member) may
become liable to the full extent of
the debts legally contracted by the
association.
CHEAPNESS NOT THE AIM
It is gratifying to receive informa
tion from co-operative societies that
are wrestling with the pressing
problems of the day, that cheapness
is not their aim. The co-operative
store that deals honestly in honest
goods will always find it difficult to
compete with the "cheap store." A
society that merely runs a "cheap
store" is injuring the Co-operative
Movement.
The important fact to get into the
minds of the members is that the
purpose of Co-operation is to distrib
ute good goods, to give honest weight
at fair prices.
The private store that sells inferi
or goods and takes advantage of the
customer in the little matters wher
ever it has a chance, may be able to
undersell the co-operative store, but
the customer in the end will pay
more. We must get the people to
understand this. The purpose of the
co-operative store is not low price,
but the best value for the money.

94 CO-OPERATION
SEEN HERE AND THERE
CO-OPERATIVE PRODUCERS' FACTORIES IN ENGLAND
Producers' profit-sharing work
shops, often called "co-operative
productive societies," were started
long before the consumers' move
ment was established. Robert Owen
and the old school of Co-operators
of the early part of the last century
were devoted to the theory that the
workers as producers should com
pletely get control of the shops. At
the present time there are 105 of
these productive societies in Eng
land. In 1913 there were 108. The
important factor is the number of
employees. In 1913 the workers
numbered 10,500; in 1920 there
were 11,500.
How nearly these shops are con
trolled by the workers may be seen
from the fact that in 1913 the total
number of shareholders of the so
cieties was 35,000, and in 1920 it
was 43,000. In other words, there
are more than three times as many
shareholders as workers. The work
ers have not been able to finance
these undertakings, and consequent
ly three-fourths of the membership
is outside of the shops. This major
ity of shareholders who are not
workers in the industry do not at
tend the meetings, the managers
have told me. They do not partici
pate in the government. They put
in their money either for investment
or philanthropy. I will cite two of
the best examples in England.
The Desborough shoe factory is
one of the best of these shops. In
this case about one-third of the
stock is owned by the workers, one-
third by consumers' societies, and
one-third by philanthropists and
other organizations. There is noth
ing about this shoe factory that im
presses one as setting any especial
example. It is crowded, noisy, stren
uous, dirty and possesses not a sug
gestion of beauty or attention to
anything but intensive production.
ByJ. P. W.
Many of the workers are young boys
with the peculiar pallor that one
constantly sees in other profit-mak
ing shoe factories. I was sadly im
pressed by this effort of the workers
to get control of their factory by way
of the producers' approach. The
wages earned by these workers are
on the whole slightly better than in
capitalistic shoe factories; but the
struggle is a desperate one. I could
not help recalling the spacious, airy,
clean and beautiful shoe factory of
the Swiss consumers' societies in
Basel, or the big, airy factory of the
Danish Wholesale at Copenhagen
or the great shoe works of the
English wholesale at Leceister.
These three are consumers' facto
ries. In comparison with them the
efforts of producers seem like very
precarious undertakings. As a
plant the Desborough shoe factory
compares very unfavorably with the
corset factory of the C. W. S. in the
same town.
Another of the best examples of
a productive society is the Kittering
clothing works. In this case also the
workers own only about one-third of
the stock. Most of the employees
are girls. As is the case in all in
dustries, they are there only until
they can get married or find a better
job; but this fact prevents them
from developing a permanent inter
est in the shop. On the other hand,
marriage or a better job does not in
terfere with the consumers' relation
to his society, except to improve it.
This Kittering clothing factory is an
old society of producers. I asked the
manager what he saw ahead for it,
what was to be its ultimate desti
ny? He frankly replied that it would
probably end by being taken over
by the Co-operative Wholesale So
ciety.
This latter has been the fate of
many of the producers' plants that
have not gone down in failure. Rel
atively few have lasted long. For
fifty years the English C. W. S. has
been taking over factories that were
started by the workers in the inter
est of the employees. It is interest
ing history to see these producers'
shops, one by one, being taken over
by the organized consumers' move
ment.
These producers seem to under
stand the difficulties under which
they labor better than the theorists
who still harbor the fallacy that
workers' control can be won by be
ginning at the productive plant.
They are coming to understand that
these productive shops are not pro
ducing goods for use, but for profit.
If their enterprise succeeds it means
profits for the workers, and if the
profits become large the natural ten
dency is to restrict the number of
people who can have them. By so
doing the profits are made still lar
ger. As a result, the "successful"
producers' factory tends to convert
itself into a busines of capitalists
and the social spirit disappears.
Success means failure!
In England these producers' so
CO-OPERATION 95
cieties in the last eight years have
increased their membership 23 per
cent, but the total number of em
ployees has been increased only
14 per cent. On the other hand,
the consumers' societies in the same
period increased their membership
from 2,878,648 to 4,504,852, an in
crease of nearly 100 per cent. The
total employees of the consumers'
societies of Great Britain is 186,000.
One reason for this difference in
size and growth between producers'
and consumers' societies is that the
increase of membership is of advan
tage to the consumers; but if the
producers increase the number of
workers the profits must be divided
among more people, and if they in
crease the number of members who
do not work, democracy is carried
just so much farther away. The
producers' profit-sharing work-shop
may be useful as an adjunct to the
trade union movement, but neither
it nor the trade union movement
alone can solve the workers' prob
lem. The British working people
are arriving at the understanding
that the control of industry by the
people can be attained only by
organizing as consumers.
THE NORTHERN STATES CO-OPERATIVE
LEAGUE
A brief report of the organization
of the Northern States League has
been published in the April issue of
this magazine. The new district
league is organized under the con
stitution of The Co-operative League.
The convention was held in the Co
operative Central Exchange Build
ing, on March 18. Fourteen co-op
erative societies sent 24 delegates to
this convention.
Among the fourteen societies rep
resented there was one central
(wholesale) organization—the Co
operative Central Exchange of Su
perior, Wis.—and two co-operative
(consumers') creameries; the rest
were distributive societies (co-oper
By SEVERI ALANNE
ative stores). The aggregate mem
bership of these 14 societies ex
ceeded 10,000, and the total sales of
these societies during the year 1921
was more than $1,500,000. The fol
lowing is a complete list of the so
cieties represented at this conven
tion :
Milwaukee Consumers' Co-opera
tive Association, Milwaukee, Wis.;
delegates, Edw. Murray and Harry
J. Toal.
Co-operative Central Exchange,
Superior, Wis.; delegates, John
Nummivuori, Severi Alanne, Matt
Tenhunen, K. Lindenwall and H. V.
Nurmi.
Franklin Co-operative Creamery

96 CO-OPERATION CO-OPERATION 97
Association, Minneapolis, Minn.;
delegate, Mrs. Edw. Solem.
Union Consumers' Co-operative
Society, Duluth, Minn.; delegates,
P. F. DeMore, John Crew and H. L.
Morin.
Workers' and Farmers' Co-opera
tive Company, Two Harbors, Minn.;
delegate, Aug. Omtvedt.
Glenwood City Equity Company,
Glenwood City, Wis.; delegates,
Wm. Rutzen and David Zillsdorf.
Spooner Co-operative Association,
Spooner, Wis.; delegate, Wm. D.
Campaigne.
Producers' Co-operative Associa
tion, Ashland, Wis.; delegate, C. L.
Rydmark.
Central Co-operative Creamery
Association, Superior, Wis.; cBele-
gates, Harry Bourquin and Arvid
Nelson.
Farmers' Co-operative Company,
Wright, Minn.; delegate, Victor
Lahti.
Farmers' Co-operative Company,
Cromwell, Minn.; delegate, Sam
Sahlman.
Wentworth Farmers' Co-operative
Association, Wentworth, Wis.; dele
gates, Frank Berggren and Anton
Christensen.
Brantwood Supply Company,
Brantwood, Wis.; delegate, A. E.
Lindros.
Pilsen Co-operative Association,
Moquah, Wis.; delegates, John Me-
lisko and M. J. Bizub.
Nine of the societies represented
are in Wisconsin, while six are in
Minnesota. Several societies from
the state of Michigan had been in
vited to send delegates to the con
vention, but only one—the Crystal
Falls Co-operative Society—had
sent delegates. By a misunder
standing, however, these delegates
had arrived in Superior for the 17th,
on which date a co-operative man
agers' conference was held, and on
account of arrangements they had
made at home, had to return on the
night of the 17th, and thus were
unable to take part in the delibera
tions of the convention. But, as the
Co-operative Central Exchange com
prises also societies from Michigan
it can be said that Michigan, too,
was represented at the convention.
Delegate Edw. Murray, of Mil
waukee, was elected chairman; Del
egate P. F. DeMore, of Duluth, vice-
chairman; and Delegate S. Alanne,
of Superior, secretary for the con
vention. John Scholtes, secretary
of the Union Consumers' Society of
Duluth, Mlinn., acted as assistant
secretary for the meeting.
The secretary read a communica
tion from The Co-operative League,
conveying the best wishes of the na
tional organization to the conven
tion. There was also a communica
tion from J. H. Walker, secretary of
the Bureau of Co-operative Societies
of the American Federation of La
bor, as well as a telegram of greet
ing from the Marquette University
Chapter, Intercollegiate Co-opera
tive Society of Milwaukee, Wis.
While waiting for the report of
the credentials committee, an oppor
tunity was given to one delegate
from each society to say a few words
about the history and activities of
their respective societies. This was
done also with a view of giving the
delegates an opportunity to get ac
quainted with each other.
The committee on permanent or
ganization took up the model consti
tution for district leagues as drafted
at the second national convention of
The Co-operative League, held in
Cincinnati, Ohio, in November, 1920.
This constitution was adopted by
the convention with the slight
changes necessary. It was agreed
that each affiliated society pay 15
cents per member dues annually, so
that the annual dues of a society,
f. L, with 200 members would be
$30 a year. One-fourth of this goes
to The Co-operative League.
Other subjects discussed by the
convention were:
The best methods for spreading
co-operative literature and knowl
edge of the Co-operative Movement
within the district.
A uniform system of accounting
among the co-operative stores in the
district. Delegate H. V. Nurmi, of
the auditing department of the Co
operative Central Exchange, read a
paper on this subject.
Samples of literature published
by The Co-operative League were
distributed.
The following were elected di
rectors for the newly-created
league: S. Alanne, of Superior,
Wis.; Mrs. Edw. Solem, of Mineap-
olis, Minn.; Harry J. Toal, of Mil
waukee, Wis.; John Nummivuori, of
Superior, Wis.; P. F. DeMore and
John Scholtes, of Duluth, Minn.; H.
V. Nurmi, of Virginia, Minn. The
following were elected as alter
nates: C. L. Rydmark, of Ashland,
Wis.; Wm. Rutzen, of Glenwood
City, Wis.; Wm. D. Campaigne, of
Spooner, Wis.; and M. J. Bizub, of
Moquah, Wis.
The convention decided that the
next convention of the league be
held in Minneapolis, Minn., in Sep
tember, in the new hall of the
Franklin Co-operative Creamery
Association.
Mr. Clark H. Getts, representing
the Federated Press, acted as toast-
master at the banquet which had
been arranged by a committee on
arrangements, elected jointly by the
Union Consumers' Co-operative So
ciety of Duluth and the Co-operative
Central Exchange. Besides the
"eats," the delegates and visitors
were treated with some orchestra
selections furnished by the workers'
orchestra of Superior, violin and vo
cal solos, dancing by children, etc.
The banqueters were photographed
and one of these photographs will
be on exhibition in the offices of The
Co-operative League.
After a session lasting practically
all day and broken only by short re
cesses for lunch as well as the three-
hour banquet, the first convention of
the Northern States Co-operative
League adjourned at about mid
night on the 18th of March, which
day will go into history as one of
the milestones in the American Co
operative Movement.
ELIMINATION OF WASTE IN THE RESTAURANT
By MARY ARNOLD
Manager, "Our Co-operative Cafeteria," New York City
Abstract of Lecture at The Co-operative League School
There are three kinds of waste
which we should consider: Prod
ucts, time, and, most important of
all, the workers' spiritual force.
The first and second may be
thought of in terms of money waste.
When it comes to simple buying, it
is pretty easy to determine whether
you are getting a thing for 10, 12
or 15 cents, or whether you are pay
ing more than you should for prod
ucts. Buying is so largely an indi
vidual problem that we will not dis
cuss it in detail. In a cafeteria it
is important to buy the exact article
you want. The demand is the im
portant factor, and it is here that
the most waste is apt to occur, be
cause it is not so obvious as in the
cost of products.
One of our jobs is to know ex
actly what people want. It is nec
essary to study the custom. Before
opening a place we make up ou»
minds what class we are going to
hit for. We find that men and wom
en like entirely different things;
young and old women and young
and old men like different things.
If we are going to buy successfully
without waste we must know ex
actly what our group wants. Young
women between 15 and 25 i.ll like a
lot of sugar in their desserts, but
every year the desire for sugar
grows less intense, so that for peo
ple of 50 you would cut your sugar
in half. College boys are different
in their tastes from young women,
and prefer volume to quality.

98 CO-OPERATION
Waste is not a question of what is
left over, for there should be no left
overs if the quality is right. It is a
question of making the article hit
the demand.
It is essential to know the inten
sity of demand. In establishing a
restaurant you must know the num
ber of people to be fed, the number
compared with the acreage, and the
number of other similar places. Also
the character of demand. What kind
of groups, the tastes, the sex, age,
etc. Your facts should be so col
lected and well calculated that your
turnover will be immediate and the
maximum number of people served.
In a cafeteria these careful
studies determine the difference be
tween profit and loss. In the first
place, we find that one of our big
gest problems is the exact measure
ment of the thing that is to be sold
at a given price. In the beginning
we discovered the first month that
we were §80. short according to our
books. By carefully shaving ever
so slightly the portions of meat, less
sugar in desserts, etc., we found
when the second report was read
that we were §120 to the good.
Nothing should ever come back to
the kitchen from the plates in large
quantities. If the same thing comes
in on two plates it is the manager's
job to fly to the kitchen and find out
what is the matter with that article.
Before serving, everything must be
tasted by the manager or assistant
manager.
In cooking calculate short on
things that cannot be used later, as
for instance, certain desserts. Such
things as meat, potatoes and some
vegetables can be provided in large
quantities and used if left over.
Watch the first half hour for replac
ing articles that move fast. Some
things have to be replaced twice.
The manager's job keeps her going
back from the dining room to the
kitchen with reports.
Our wages are running almost as
high in percentage as our food costs.
Waste in labor is quite as expensive
as waste in food. It is necessary
that while people are working they
should earnestly work. Their work
should be so arranged that they can
utilize their time to the best advan
tage. It is also important to have
the right person for the job. There
is often much waste because people
are not fitted to the job. This is a
loss for the management and a loss
for the employee. One of the things
to be developed in the future is this
fitting of the person to the job.
The manager's duty is to do every
job in the place: wash the dishes,
clean the coffee urn, serve the food,
etc., timing herself on each partic
ular job until the exact knowledge
is attained. For instance, of the
length of time needed to cut the
bread and the number of slices to
the loaf, etc., may be taken as a test.
This must be done without speeding
up or soldiering.
Cost accounting in labor is one of
our biggest concerns. Schedules
should show that the workers are
using the time to the best advantage.
The third factor in waste is the
biggest element. This is the waste
of spirit applied to the work itself.
It is a problem to fit people to the
job in which they are primarily in
terested. We all have to be taught
the technique of the job first. How
to do it in the best way. Then the
thing to remember is that it is the
result that should be asked of us.
There is room for endless self-ex
pression in a cafeteria if every op
portunity is given to bring it out.
The jobs in a cafeteria range
themselves; first, dishwashing; sec
ond, salad making; third, serving at
counter. Once the technique is
learned, there are many ways of
carrying on the work, just as well
as in any executive work. Self-
expression is possible in making sal
ads, for instance. There is a great
difference in a day of drudgery and
a day that is full of self-expression.
We care a great deal about this.
The hours and wages are vital, but
the opportunity for initiative is the
thing that our workers care most
about. The happy work of each in-
dividual worker is the thing that
makes our cafeteria a success.
Every worker is supposed to show
certain definite results. If the man
ager thinks the job can be done in
a better way, she must make the
test and prove her point. Our work
ers are much interested in tests. The
cafeteria is a place where the op
portunity of self-expression in work
is one of the biggest things we as
Co-operators have to face.
Each worker is allowed 80 cents
worth of food for each meal. All
the workers practically become
members and share in the savings-
returns on the same basis as every
other member.
(In Answer to Questions)
We do not keep our cafeteria
open on Sundays because of the
workers' need for rest.
It is better to sell many articles at
CO-OPERATION 99
low prices than few articles at high
prices.
The question of obviating the
long waiting lines is very difficult to
answer. Our people are very pa
tient, and seem to prefer to come
where they get home-made good
food at a cafeteria than to pay more
and be served quicker at restaurants.
There are always certain groups
who do not like the cafeteria, but it
pays much better than the restan-
rant or tea room. Most of our mem
bers are office workers and do not
mind standing in line.
The ugliness of the tray service
we wish we could overcome some
way.
Ten per cent is the maximum sav
ings-return that we expect to make.
To do this we must have a crowded
place. If the crowd is a minimum
it would amount only to 6 per cent.
EDUCATIONAL WORK AT "OUR CAFETERIA"
By MARION L. NASH
(Discussion Continued)
"Our Cafeteria" was started in
1920 by four people with a capital
of §4,400. After it had been run
ning for five months and showed a
profit, a campaign was started to get
members at $10 per share, with a
limit of individual share-owning of
$200. Posters such as the following
were placed on the wall:
"Do you want to share in the
profits of the Cafeteria?"
"Don't you want to catch the high
cost of living by the tail ? " This was
in the shape of a fish being pulled
up on a line.
Meetings were held and leaflets
distributed. The empty sugar
bowls were used for literature.
There was a membership commit
tee appointed, composed of twelve
people. A green line was drawn to
a room where every day two mem
bers of the committee sat to answer
questions and give out literature
and take in membership money.
Such leaflets as "Our Cafeteria;
How it Works. " "Our Cafeteria;
(See Report, page 103)
How it Grew," were printed and
distributed with small cards with
the address on.
In the first two weeks 112 mem
bers joined. It is better to have
an intensive campaign for one week
only.
Other committees appointed
were: The library, to purchase and
distribute books and pamphlets on
Co-operation; the educational, to
arrange lectures and meetings; the
house, including inspection and dec
oration; and the bulletin committee
to post clippings, reports and no
tices each day on the bulletin board.
Business meetings are held
monthly. About 60 people attend.
The monthly reports and financial
statement are sent to each member
by mail. The society publishes its
own paper, "The Co-operative
Crier."
The future plan is to keep on
starting branches as soon as each
one is self-supporting and firmly
established.

100 CO-OPERATION CO-OPERATION 101
THE CO-OPERATIVE LEAGUE
DEDICATION OF THE LEAGUE
HOUSE
On Saturday, May 13, 1922, the
opening of The Co-operative League
House in New York City was cele
brated. Friends of Co-operation
crowded the building. Some came
from out of town from New York
State, from Pennsylvania, New Jer
sey and Connecticut. Letters and
telegrams of greeting and good
THE CO-OPERATIVE LEAGUE HOUSE
167 WEST 12th STREET, NEW YORK CITY
wishes were read from members of
the Board of Directors and other
workers in the field from all parts
of the United States. Music was
furnished by an orchestra under the
direction of a member of The
League.
Addresses were made by Albert
Sonnichsen, Emerson P. Harris, Pe
ter Hamilton, Andrew P. Bower and
Agnes D. Warbasse. J. P. War-
Basse presided. Many prominent
workers in the Co-operative Move
ment and well-known leaders in the
field of labor education were pres
ent. Refreshments were served. A
general spirit of happiness and ex
hilaration, inspired by the progress
of The League and the evidences of
its steady development, prevailed.
All of the speeches and the con
versations of the guests rang with
enthusiasm for The Co-operative
League House. It was realized that
after seven years of solid, patient
work and growth, The League was
entitled to a home of its own. The
offices in which the Executive Board
now do their work are comfortable,
beautiful and commodious. Thus
step, by step, year by year, The
League advances.
One of the speakers expressed his
gratification that the Co-operatvie
Movement in the United States was
growing not fast, but slowly. It
must grow slowly, because a sound
Co-operative Movement can grow
no faster than it can educate and
train people to guide it. It is the
steady work of The League that is
building the foundation upon which
a great co-operative structure may
be reared.
PUSH THE MODEL LAW
The model state co-operative law
drafted by the committee on legis
lation of The League, has met with
a gratifying response. Influential
people in Wisconsin, Ohio, Illinois,
New York, and other states, are
bringing the model law to the at
tention of legislators. Mr. J. P.
Busker, secretary of the educational
committee of the Roseland Co-oper
ative Association of Chicago, in
forms us that the Roseland Society
has seen the state representative of
its district about the co-operative
law. This is the right spirit, and
other societies should follow this ex
ample.
In fighting some of the most dan
gerous fakes during the past few
years, The League has learned to its
cost that there is not a single state
with laws which are adequate to
deal with the clever fakers. The
model co-operative law drafted by
The League is especially designed
to cope with this situation. Copies
of the law will be sent on request.
Get behind the model law in your
state, and have it enacted, for the
protection of the public and of co
operative societies.
TABLE OF GROCERY BUSINESS
PROFITS
A very valuable report of a survey
made of the retail grocery stores in
New York City has been issued by
the New York State Department of
Farms and Markets. The report
contains tables giving the percent
ages of gross profit on various com
modities, and other useful informa
tion. An especially valuable study
is made of the operating expenses
and profits of "cash-and-carry"
stores, as compared to "credit-and-
delivery" stores. The report is writ
ten in popular style, and the points
are made clear by means of graphic
illustrations.
The board of directors of each
society should study this report care
fully. Copies may be had on appli
cation to Herschel Jones, Director of
the Department of Farms and Mar
kets, 90 West Broadway, New York
City.
ADVICE TO STORE MANAGERS
Buying
It is absolutely necessary to keep
the stock down and to turn it over
as many times a year as possible.
A loose-leaf book or The League's
order blanks should be used. Some
managers like the card system, and
keep an index near the cash register,
and each sale is entered at the time
on the correct card. These cards
show stock on hand when inventory
was last taken, new stock added,
and stock sold. This plan gives a
perpetual inventory. It entails much
work when many lines are carried,
and can rarely be carried out in co
operative grocery store, if there is.,
lack of help. S**^-
In buying a new line of goo/fs "the
price and terms should be favorable.
Take no chances; buy in small quan
tities when the price is not higher
than in large quantities. There is
much time saved by ordering by
mail. You order when you need
what you need in half the time con
sumed in seeing salesmen. It is wise
to go to market frequently and to
keep in touch with wholesale prices
through a trade journal. Avoid
buying on consignment or on com
mission. Get a carbon copy of ev
ery order you give a salesman, and
keep a copy of orders sent by mail.
You can get order blanks and en
velopes from all wholesalers. Dis
count your bills. Pay as soon as
invoices come in; this makes less
bookkeeping. Enter on the check
the date of the bill and check pays.
If the turnover is not large it will
be found hard to buy in the right
quantities and at right wholesale
prices. Case lots from the jobber is
not a good plan. Twenty-five case
lots from the wholesaler direct is
much better when the business is
big enough. Haul your goods if pos
sible. This saves a great deal.
Judge what people want by what
they have bought before. In .open
ing a store be conservative. Do not
put in a large line of specialties.
Visit neighboring stores to find out
the special needs of the vicinity.
Be courteous to salesmen, but let
them know that you are too busy to
give them more time than necessary.
It is wise to compare prices before
giving your orders. Tell them you
will mail your order later, and then
find out how much others are quot
ing. Be not afraid to say "no" to a
salesman. Remember, you are
spending other people's money ev
ery time you give an order. Spend
it with the same care you would
your own. The directors should al
ways be consulted before any un
usual order is given.
Fruit and Vegetable Department
' The manager must pay particular
attention to the purchase of fruits,

102 CO-OPERATION
vegetables and other perishables.
Some competent person will do well
to visit the early morning farmers'
market (if there is one) two or three
times a week and buy on the same
terms as the jobbers. If the man
ager buys from peddlers he should
examine every box or basket of
goods carefully. He should ask over
the phone what the jobbers are get
ting for green goods before he pays
the peddler's prices. He must buy
conservatively. Better to run short
before night than to have goods
spoil over night. Customers should
not be allowed to handle the ber
ries, tomatoes, melons, etc., and pick
out the best ones. Either put them
under cover where they cannot be
touched, or establish a rule to this
effect. Every lot of such goods
should be quickly graded and put
into different boxes, so that best
goods should bring high enough
prices to make up for slight losses
on the poorest grades. Sometimes
five or six grades can be found in
one shipment of cucumbers, toma
toes, pears, etc. This reduces tempta
tion for customers to try to grab the
best. It is fairer to all. Quote the
different prices over the phone when
taking delivery orders; and there
will be no necessity for palming off
the cheapest goods to delivery cus
tomers. Immediately such an order
is taken lay aside the goods desired,
so that they will not be sold by oth
er clerks. Do not put vegetables
and fruit on the floor of the store.
Meat Department
The manager should see to it that
a competent meat cutter is put in
charge of the meat department. All
the expenses and sales should be
kept separate from the rest of the
accounts. Some stores in country
towns buy native stock and employ
a meat cutter by the day according
to the need. There is a saving in
making lard and sausage meat at
the store. See that the ice box is
kept clean.
CO-OPERATION ENDORSED BY
LABOR FEDERATIONS
At the Pennsylvania Federa
tion of Labor Convention at Scran-
ton the address of fraternal greet
ings in behalf of The Co-operative
League, by Andrew P. Bower, was
enthusiastically received. Mr. Bow
er, who, in addition to being vice-
president of The League, was elect
ed third vice-president of the Penn
sylvania Federation of Labor, was
instructed "to go the limit" in car
rying on educational work among
the co-operatives in Pennsylvania.
The Labor Federation will pay his
expenses. Mr. Bower reports that
he had never experienced so gratify
ing a reception in advocating Co
operation before the federation con
vention as he had this year. As an
evidence of the need for co-opera
tive education, it was reported at
the convention that the disastrous
experience of the Tri-State Whole
sale, which cost organized labor in
Pennsylvania $213,000, would nev
er have occurred if the warnings is
sued by The Co-operative League
had been heeded. The Tennessee
Federation of Labor also took a very
favorable attitude towards Co-oper
ation. Mr. W. F. Seigenthaler, a
loyal Co-operator, at a great per
sonal sacrifice, attended the con
vention at Memphis and delivered
the greetings of The League. The
convention adopted a resolution en
dorsing and approving the work of
The Co-operative League, and in
structing the officers of the Federa
tion to take up the study of Con
sumers' Co-operation and to further
its development as far as they can.
Mr. Seigenthaler reports that an
amusing incident occurred in the
committee on resolutions. The only
person in the committee familiar
with Rochdale Co-operation was a
woman school teacher. Men who
had been in the labor movement
many years had never heard of
Rochdale Co-operation, and heard
of it for the first time from the lips
of a woman.
A CONFERENCE OF CO-OPERA
TIVE MANAGERS IN
MINNESOTA
CO-OPERATION
NEWS AND COMMENT
A realization that united action
for their own benefit would be
helpful has come to several co-oper
ative societies in Minnesota, which
hitherto have held aloof from all
central organizations. As an indi
cation of this new spirit, a confer
ence of co-operative store managers
in the state of Minnesota was held
at the Ryan Hotel in St. Paul, April
27. Eleven societies werei repre
sented by their managers, one soci
ety having sent a board member
along with the manager to the con
ference.
The following co-operative stores
were represented at the conference:
Rothsay Co-operative Association,
Rothsay; People's Co-operative Mer
cantile Company, Dillworth; Farm
ers' Co-operative Mercantile Com
pany, Hoffman; Minnesota Lake
Farmers' Co-operative Mercantile
Company, Minnesota Lake; New
Richland Farmers' Co-operative
Company, New Richland; Young
America Co-operative Store Com
pany, Young America; Greenland
Farmers' Equity Exchange, Elysian;
Farmers' Mercantile Company, Star-
buck; Staples Co-operative Compa
ny, Staples; Farmers' Co-operative
Company, Lamberton; Bethel Co
operative Store Company, Bethel.
The chief topic discussed was the
question of permanent organization.
It was agreed that another confer
ence should be held, as the attend
ance at this conference was consid
ered too small to start any kind
of permanent organization. The
planned new conference will be
held some time in June and a com
mittee of three was elected to make
arrangements for the same.
Mr. S. Alanne, head of the edu
cational department of the Co-op
erative Central Exchange of Supe
rior, Wis., was also present at the
103
conference. He explained that
about thirty of the fifty-eight co
operative societies affiliated with
the Co-operative Central Exchange
are located in Minnesota, about half
of these being regular co-operative
stores and the other half co-opera
tive buying clubs.
The conference was an outcome
of circulars which had been sent
out by Mr. J. L. Anderson, manager
of the Rothsay Co-operation Asso
ciation. Mr. Anderson acted as
chairman at the conference.
"OUR CAFETERIA"
The annual report of "Our Co
operative Cafeteria," of New York
City, shows a total income from
meals during the year ending March
31, 1922, of $190,247.93. This
takes into account the yearly busi
ness of two cafeterias, and only
three months' operation of the new
cafeteria in the financial district.
With three cafeterias in operation,
the report for next year will prob
ably show a business of about
$250,000.
The net surplus-savings for the
past year amounted to $20,829, of
which $1,886 was spent on co-oper
ative education. Large quantities
of the literature of The League are
distributed at the cafeterias as a
part of the steady educational work
of the society. Members of the so
ciety received $2,754 in savings-
returns on their meals, in addition
to interest on their shares. Thou
sands of dollares were set aside to
cover depreciation of fixtures and
equipment, and amortization.
The greater part of the net earn
ings of the society was put aside
as a surplus fund. About $13,000
is available as a reserve.
The reports of "The Co-operative
Cafeteria" are remarkably clear and
detailed. Members receive fre
quent reports on the condition of the
business. The books of the society

104 CO-OPERATION CO-OPERATION 105
are inspected monthly by a firm of
public accountants, and a certified
statement has been issued semi-
annually, consisting of the balance
sheet and six months' income ac
count. Such statements in the fu
ture will be issued every three
months.
The society has over 750 mem
bers. Its restaurants are at 52 East
25th Street, 54 Irving Place, and 22
Thames Street. "^
THE GREENWICH VILLAGE
LAUNDRY
The Greenwich Village Co-opera
tive Laundry in New York City con
tinues to make progress.
Several times in the last six
months it has had to put in more
washing machines and enlarge its
force. The laundry is owned by
the Greenwich Village Co-operative
Society, which is composed mostly
of artists, writers and other pro
fessional people.
This is a laundry in which no de
structive chemicals and no bleaches
are used. Clothes are washed with
the same personal care as at home,
regardless of the expense. The
prices charged are no higher than
other hand laundries; but, unlike
the so-called "hand laundries," that
are really just receiving stations for
big steam laundries, this one actu
ally does hand work. This laundry
aims to wash the clothes of its mem
bers better and more safely than
they can be washed elsewhere.
Strenuous opposition from private
laundrymen in the vicinity has been
aroused by the success of the co
operative laundry. The profit-mak
ing laundries have resorted to every
trick possible to destroy this com
petitor. Its delivery boys were in
duced to lose packages. When this
failed, the boys themselves disap
peared, several of them in succes
sion. Packages were stolen, aeid
was maliciously thrown on clothes
after they were washed. By this
means holes were burned in the
wash. Employees have been offered
higher wages and other inducements
to get them away from the laundry.
Still the business is three times lar
ger than it was six months ago.
The laundry begun in a small way
and expands gradually. It now has
three power washers, a mangle, a
dry room and employs nine persons,
with every indication of continuous
growth.
ROSELAND CO-OPERATORS
SAVE 110 PER CENT
The Roseland Co-operative Asso
ciation, of Chicago, affiliated with
The Co-operative League,. makes a
savings-return to its members and
non-members equal to about 90 per
cent of the invested capital. It
has a grocery and meat market, a
branch store, a restaurant, club
rooms and a library.
During the same period hundreds
of thousands of dollars were being
lost by a gigantic Chicago fake "co
operative."
The Roseland Society had a turn
over of $195,605 in 1921, a decrease
of $12,000 as compared with the
previous year. In view of the steady
decline of prices during the year,
these figures really represent a gain
in the volume of business. The net
surplus-saving amounted to ,$6,332.-
76. The society paid $359.50 in in
terest on capital and loans, it spent
$363.56 for educational purposes,
and paid savings-returns amounting
to $5,024. As the subscribed capi
tal stock of the society is only $5,-
720, the savings-returns represent a
return of about 90 per cent of the
invested capital. In addition to
these savings, the sum of $485.70
was retained for reserves, after pay
ing all expenses, interest and re
turns.
The net surplus-saving of $6,-
332.76 is what profit-making busi
ness would call profits. On an in
vestment of $5,720 this represents
a return (or "profit") of 110 per
cent. That is about twenty times
I
more return on investment than the
average capitalist gets. We insist
that if the people will but organize
and conduct true co-operative en
terprises, they can beat the capital
ist at his" own game.
BALTIMORE SOCIETY HELPS
MINERS
In spite of the fact that it has
not yet been in a position to make
savings for its members, the Organ
ized Labor Co-operative Society of
Baltimore, Md., has rendered a
great service. During the past few
months, the sum of $15,000 was dis
pensed through the co-operative
store for the relief of the striking
miners of West Virginia and West
ern Maryland. Every dollar spent
in the co-operative society for food
for the strikers bought more goods
than could be gotten through pri
vate firms. Six carloads of flour,
bacon and other staples have so far
been supplied through the co-op.
This society has a membership of
more than a thousand workers. It
has an active women's guild, which
is developing plans for a co-opera
tive camp to be conducted this
summer at the Patapsco forest re
serve. At a small cost, camping
facilities will be provided for the
families of the Co-operators.
The store operated by this soci
ety is showing a steadily growing
business. Overhead costs have been
materially reduced. The Rochdale
plan is followed, and the society
does not hesitate to seek the assist
ance of The League, with which it
is affiliated.
CO-OPERATION IN SHANGHAI
A co-operative society has just
been organized at the Fuh-Tan Uni
versity, in Shanghai, China. The
name of the society is The Ping
Ming Co-operative Association. We
are assured that this is the first co
operative to be organized in China.
This pioneer group is in touch with
The League, and is profiting by
American education and experience.
CONCERNING MAINTENANCE
OF WAY BROTHERHOOD
In the May number of CO-OPERA
TION we were in error m the mat
ter published under the caption, "A
Badly Advised Rail Brotherhood."
The United Brotherhood of Main
tenance of Way Employees and
Railway Shop Laborers is not and
never has been in the hands of a
receiver by order of any court. The
only order restraining the Brother
hood from withdrawing its bank de
posits was one issued in the state of
Ohio. We are advised by the Grand
President of the Brotherhood that,
thougli the organization has suf
fered financial loss through the wild
and frenzied orgie of spending in
dulged in by former officers in in
dustrial enterprises, the total loss
to date, as disclosed by the certi
fied audit, will not approach one-
sixth of the amount mentioned in
our May article.
It is most gratifying to learn that
the losses suffered by this Brother
hood are not so great as had been
supposed. But what is more grati
fying is the fact that this organiza
tion now has as officers men who are
truly interested in real Co-operation,
and who can be relied upon to pro
tect the members against the wild
schemes into which labor bodies
now seem so prone to enter.
CENTRAL COMMITTEE OF THE
I. C. A. MEETS
The Central Committee of the In
ternational Alliance met at Milan,
Italy, April 10 and 11. It received
the report of its committee of inves
tigation, which had just returned
from Russia. The report showed
that the distributive societies had
been given their full freedom, and
are no longer dominated by the
government; in fact, they have a
larger degree of freedom than have
the societies in many other coun
tries. The next meeting of the Cen
tral Committee will be held in Ham
burg in the spring of 1923.
.

106
MARGARINE IN DENMARK
We drove in an automobile from
Ringsted to Haslev, in Denmark,
last summer. Along the road we
stopped at a co-operative store, in
the remote country. In front of the
store stood a wagon which had
stopped to deliver margarine. Here
in the rich dairy country of Den
mark, that makes the best butter in
the world, the co-operative store
was selling margarine to the farm
ers. Why is it? Because the farm
ers get such good prices for the but
ter they export, and they can buy
margarine so cheaply they have not
the heart to eat butter. Strange as
it may seem, the Danish co-opera
tive wholesale has no creamery or
butter factory, but it has a marga
rine factory. This is one of the
strange results of economic deter
minism which directly affects the
Co-operative Movement. J. P. W.
EVERY MEMBER PRESENT AT
ANNUAL MEETING AT
PINE BLUFF
The Pine Bluff Co-operative Asso
ciation, Arkansas, runs a general
store. At the last meeting of the
stockholders a savings-return, to the
amount of $2,800 was distributed
back to the stockholders. The Asso
ciation paid to all stockholders the
interest on their capital stock, which
totaled approximately $500. The sum
of $1,000 was left in the undivided
surplus-savings column to be dis
tributed later as the stockholders see
fit. To those of the laboring classes
who have never attempted the co
operative idea, please do not do so
unless you are absolutely sure you
know what you are doing. Unless
you are loyal to the core, unless you
can keep your head when the entire
world goes to pieces, and you see
crashing to earth all the cherished
idealized dreams of Co-operation, and
unless you have a strong heart and
can withstand shocks of any descrip
tion and intensity, you had better
CO-OPERATION
think twice before taking the leap
into the turbulent sea of Co-opera
tion. Pandora's box, with all its
troubles, was a piker compared to
what trying to operate a co-operative
store in Pine Bluff has demonstrated.
As an illustration: One of the mem
bers of the board began his duties as
a director with a high heart that
dared fate to come out and do its
worst. The snow is now beginning
to show in his raven locks. The box
of trouble opened when we unlocked
the co-operative store. You who
read this and contemplate a voy
age of Co-operation will do well
to consider many things. First, is
this: generally speaking, all men are
liars by the clock; they'll become all
"het" up about an idea, ready to go
through fire for it at the time; then
in a few days they have forgotten it.
Remember that the sting has never
been taken out of human nature. All
the meanness and cussedness that
ever possessed a group of people will
come out when you begin your co
operative store. The crop of sleep
less night and tales of calumny that
are visited upon you as a director will
be countless.
And now again I will say that if
you contemplate suicide, forget it,
and try operating a co-operative
store, and you'll find life just one
sweet nightmare after another; and
then you'll get mad and want to live
in order to see each one of the knock
ers of your cherished dream die a
hard death.
But the lane ends, and opening be
fore us here, in Pine Bluff, we be
lieve is the turning point. Out of
desperation and despair; out of all
the mean things that could be said
about the store, it still stands, after
two years of operation, as a monu
ment to organized labor. It is still
in its infancy, but with virtually ev
ery one of the two hundred and fifty
stockholders present at the meeting
never before were they so impressed
with the magnitude and soundness of
the business.
The Union Labor Bulletin.
W. S. BUSICK.
CO-OPERATION 107
WORD FROM THE FIELD OF ACTION
CONFERENCE OF MASSACHUSETTS
BAKERIES
The "Conference of Massachusetts Co
operative Bakeries" is a league which be
gan with a conference and which contin
ues to hold conferences.
It was formed more than a year ago, and
now meets bi-monthly, each time in a dif
ferent member city. The conference idea
originated in New Bedford with the presi
dent of the local bakery, Mr. J. Goldberg.
Before there were six bakeries in Massa
chusetts, each going its separate path, in
management, in buying, in educational
methods (or lack of educational methods).
The conference 'brought them together.
They are now in close communication with
each other. They have taken lessons in
store management, in proper sanitation, in
types of machinery required. They passed
on their experience to a new co-operative
bakery opened last summer in Springfield,
now the largest co-operative bakery in the
state. Small savings in bakery materials
were effected by a sort of collective con
tract. A (plan for the future is the pur
chase of flour through one office, in lots
of five and ten cars. With a more stable
market this may yet come.
Another matter of collective buying
among the bakeries is the purchase of coal
in large quantity for the shareholders. I
am now writing to a Pennsylvania mine for
information on a purchase of 100 cars of
coal for distribution in our eight cities.
Springfield sold coal to its shareholders
last winter at a saving of $1 per ton, and
used eight cars, starting late in the year.
I have left for the end, and purposely,
the educational work of the conference. In
the past this part of co-operative work has
been much neglected; we are just begin
ning to realize the need of more publicity,
more training in the need and aspirations
of Co-operation. We have now under con
sideration the use of your four-page Asso
ciated Magazine, the fourth page to be
printed in Yiddish. Through the confer
ence we were able to arrange a number of
mass meetings and lectures in all of our
cities. With the Associated Magazine we
expect to reach every shareholder in the
state. In addition, we are planning to
translate into Yiddish some of the leaflets
you have sent up, and use them in this
way. We would like to get something novel
into our meetings by the use of motion
picture reels or slides on phases of the
Co-operative Movement.
MEYER GOLDBERG,
Conference of Massachusetts Co-operative
Bakeries.
HILLMAN NOW ON RIGHT TRACK
Your letter of recent date was read at
our last stockholders' meeting, and they
decided to join The League. We have had
lots of experience with the Co-operative
Movement in Seattle of recent years. We
were part of the old Consumers' Co-oper
ative, organized by Messrs. Ames, Clarke
and Lund. We organized a few make
shifts after the failure of the consumers.
Finally, we have got on the right path.
In a small locality with seven competit
ors, we held our overhead down to the
lowest figure. Our surplus-saving was di
vided as follows: Members, 6 per cent;
non-members, 3 per cent. The first few
months of our experience from August to
December was a hard battle to fight, owing
to the big slump in the shipbuilding in
Seattle; also to the fake co-operatives and
other labor wildcat schemes that grew out
of the boom here during the war.
Our organization is small, but if we only
had 100 more like us in the state of Wash
ington they could not say Co-operation is a
failure in the Pacific Northwest.
President, Hillman Independent Co-opera
tive.
R. BUCHANAN,
Seattle, Wash.
EDUCATION AT SCRANTON
The Co-operative Society in Scranton,
Pa., has organized a study class in Co-oper
ation, using the course arranged by The
League. We have twenty-five students en
rolled and quite an interest worked up.
Expect to continue the work until the
warm weather comes, and then start in
next fall again.
The Central Labor Union has endorsed
our plan and has given $50 toward the
work. Expect to double the membership.
Since January the business has increased
just about 100 per cent in our co-operative
store, and new members are enrolling. I
think our class work has helped us to make
a new start. The trouble was these people
wanted to do big things, but as yet they
have not learned to do the little ones. A
clear understanding, simplified and ex
plained in working-class language, will
save the co-operative organization.
Scranton, Penn.
MARTIN WEBER.

108 CO-OPERATION CO-OPERATION
CLEVELAND DAIRY MACHINERY
We are making progress, not only in
getting the Co-operative undertaking be
fore the workers of Cleveland, but also in
our preparation for operation. Yesterday
a carload of machinery and equipment was
unloaded and this was all done by the be>ys
who have 'been working hard to bring the
project to the point where it now is. In
this way we are making numerous sav
ings to the Co-op, thus keeping the share
capital as intact as we can.
O. J, ARNESS.
Cleveland, Ohio.
NEW YORK MILLS SMALL BUT
STRONG
We are glad to be able to say that the
business done by our store during 1921
was most satisfactory. Our gross sales
were over $45,000, and our net surplus
savings over $4,200. We paid interest of
6 per cent on our outstanding capital
stock and placed 10 per cent of our sur
plus savings in our general reserve fund,
2 per cent in our educational reserve fund,
and paid savings returns to customers as
follows:
8 per cent to members on cash and carry
sales.
5 per cent to members on house delivery
sales.
4 per cent to non-members on cash and
carry sales.
2% per cent to non-members on house
delivery sales.
Also 8 per cent on employees' salaries.
There are about 125 shareholders, who
thus far have given the store loyal support.
W. S. H. BAKER, Secretary,
The Co-operative Store Association.
New York Mills, N. Y.
(The practice adopted by this associa
tion of deducting 3 per cent from the re
bate of members who insist on house deliv
eries is a good one. Members who receive
house delivery service should pay for it.)
THE NEW BEDFORD BAKERY
This bakery is in existence over three
years, and doing a business of over $50,-
000 annually. It is primarily a Jewish
business, as all the shareholders are Jews.
We have bought a lot and are planning to
build a modern bakery the coming summer.
We would like very much to interest
the American public in our co-operative,
so that when we build our bakery we could
put in an oven for American bread also.
Inasmuch as all efforts to unionize the
American bakeries have failed, and all
strikes among them have been lost, we
could be of great help to the union bakers.
B. LEVINE, Manager,
Labor League Co-operatic.
New Bedford, Mass.
FROM THE LEAGUE'S EURO
PEAN CORRESPONDENT
CO-OPERATIVES THE ONE HOPE IN
EUROPE
My most serious interest in the Co-op
erative Movement has developed during
the last year, in which time I have been in
England, Ireland, France, Germany, Aus
tria, Hungary and Italy, studying the social,
economic, and political situations in these
countries, first as an independent student
and later as a correspondent. Certain
things stand out glaringly in all these
countries. One is the complete collapse
of the social democratic idea and ideal. I
have not been in Russia, but living here
in Vienna, where scores of refugees pour
through daily, and reading Karl Radeck's
own very frank confessions in the "Red
Flag," talking with Russians in the immi
gration houses in London, and comparing
the evidence with the boishevik experiment
in Hungary, it all tells one story of the
utter hopelessness of the social democratic,
Marxian, bolshevik idea.
The tragedy of the socialist failure in
Austria, Hungary, Russia, and Italy, is that
the masses of the people are left with
nothing to take its place. A very large
number of the idealists were actually or
nominally in the socilaist camp. Now, those
among them who have even a degree of
intellectual honesty realize that they have
been following false gods; but where else
to look? The result is an appalling cyni
cism. I cannot help but feel that we are
entering the "Twilight of the Gods."
I don't see any rifts in the present reac
tion. Instead it is deepening everywhere.
So that out of all this welter of hate
and blindness there seems to be very little
to which one can cling. But what little
there is in human association that seems to
stand up under the test is invariably the
free, spontaneous, decentralized Move
ment, and springing out of everyday, hu
man needs. So in Bavaria the co-opera
tives have come blithely through every
thing, and are stronger than ever. In Ire
land, where I spent two weeks last August,
the co-operatives were the only associa
tions able to keep their heads above the
political storm—although the English at
tacks on the creameries, waged for God
knows what reason, brought even them into
the maelstrom. Still it was inherent in
their quality that they managed to keep
out as long as they did. In Italy, where I
spent six weeks during and after the metal
workers' fight last autumn, it was a joy to
go to San Vittorio and see there a real ex
ample of actual communism, the result of
twenty years' co-operative activity.
DOROTHY THOMPSON.
Switzerland.
PUBLICATIONS
OF THE CO-OPERATIVE LEAGUE
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3. Story of Co-operation •••-.............................................$ .10
7. British Co-operative Movement ...................................... I . .10
10. A Baker and What He Baked (Belgian Movement) ...................... .05
38. Co-operative Consumers' Movement in the United States. .............. .05
' -
. . .............
39. Conanmers' Co-operative Societies in N. Y. State, {Published by Con
sumers' League) .10
TECHNICAL
4. How to Start and Run a Rochdale Co-operative Society.................. .10
5. System of Store Records and Accounts................................ .50
6. A Model Constitution and By-Laws for a Co-operative Society........... .05
8. Co-operative Education. Duties of Educational Committee Defined..... .10
9.
27.
2.
14.
2.
46.
11.
12.
S4.
43.
How to Start a Co-operative Wholesale................................ .10
Why Co-operative Stores Fail .............. .......................... .02
Co-operative Store Management ...................................... .10
How to Start and Run & Women's Guild................................ .05
How to Organize a District Co-operative League........................ .10
MISCELLANEOUS
Producers' Co-operative Industries ................................... .10
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Co-operative Movement (Yiddish) .................................... .02
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Credit; (22) A Real Co-operator; (25) Resolutions Adopted by A. F. of L.; (26) Factory
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BOOKS
The following books are recommended as containing the best discussions of the modern
Co-operative Movement. They may be ordered through The League:
Bubnoff, J. B.: The Co-operative Movement in Russia, 1917. ......................... .$1.25
Faber, Harald: Co-operation in Danish Agriculture, 1918. ............................. 2.75
Flanagan, J. A.: Wholesale Co-operation in Scotland, 1920. ........................... 2.00
Gebhard, Hannes : Co-operation in Finland, 1916. ..................................... 2.00
Gide, C.: Consumers' Co-operative Societies, 1921 ...................................... 2.50
Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, $2.00; paper
bound ........................................................................... .60
Howe, Fred C.: Denmark, a Co-operative Commonwealth, 1921. ......................... 2.50
Maxwell, Wm.: History of Co-operation in Scotland, 1910. ............................. 2.00
Nicholson, Isa: Our Story ............................................................ .25
Powell, G. Harold: Co-operation in Agriculture. Macmillan ....................... ... 1 50
Redfern, Percy: The Story of the C. W. S.. ........................................... 2.00
Smith-Gordon & Staples : Rural Reconstruction in Ireland, 1918 ....................... 2.50
Smith-Gordon : Co-operation in Many Lands, 1920 ...................................... 2.50
Sonnichsen, Albert: Consumers' Co-operation, 1919. Cloth bound, $1.75; paper bound... .75
Stolinsky, A. : The Co-operative Movement. In Yiddish ................................ 1.00
Webb, B. and S.: The Consumers' Co-operative Movement, 1921. . ...................... 5.00
Webb, Catherine : Industrial Co-operation, 1917 ...................................... 1.50
Woolf, Leonard: Co-operation and the Future of Industry. ............................ 2.00
Woolf, L.: Socialism and Co-operation ................................. .............. 2.00
"The Co-operative Consumer" and "Co-operation," III (1917), VI (1920), VII (1921).... 1.25
Transactions of Second American Co-operative Convention, 1920. ......'................ 1 00
The People's Year Book, 1922. ..................................................... .75
(Ten cents postage should be added for books which cost more than $2.00, and five cents
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1.25

THE CO-OPERATIVE LEAGUE
(Member of The International Co-operative Allinace)
167 West 12th Street, New York
An educational organization for teaching the history, principles, methods and aims of the
Co-operative Movement and for the promotion of Co-operation In the United States.
Join The League and thus help promote the educational work of the Co-operative
Movement. Individual Membership, $1.00 a year. Subscribe for CO-OPERATION,
the Monthly Magazine of The League, and keep in touch with the Movement.
Subscription for CO-OPERATION, $1.00.
Enclosed find $.
Membership in The LEAGUE, $1.00.
Name...
Address.
Date. ...
Co-operative Central Exchange
Wholesale Grocers and Jobbers,
Bakers
We supply Boods to Co-operative Societies ONMf
We are owned and controlled by Co-operative
Societies.
We ore organized to enable Co-operative Societtes
to do collectively what they cannot do indi
vidually.
Co-operative Central Exchange
Offices, Warehouses and Plant:
Winter Street and Ogden Are.,
SUPERIOR, WIS.
Co-operators' 1M. Mutual Fire Insurance Co.
Is now writing Insurance In State of Wisconsin.
The Canadian Co-operator
Brantford, Ontario,
Canada
The organ of the Canadian Co-opera-
tlve Movement, owned by and con
ducted nnder the auspices of The
Co-operative Union of Canada.
Published monthly;
75c per annum
MOVING PICTURES
and
Stereopticon Lectures
may be rented from
CO-OPKBATTVB LEAGUE OF AMERICA
167 West 12th St., New York City
1. "SoiLe Examples of English Co-operation."
Moving pictures of factory processes (two
reels) ...............................-S5.00
2. "Co-operation In the United States."
With 63 Stereopticon vlewe ............53.00
3. "The Co-operative Movement In Bnsssia."
With 36 colored Stereopticon views.. ..$3.00
Co-operation in Scotland
In no part of the world Is Co-operation further
developed, or more successfully practised than in
Scotland. If you wish to keep in touch, read
"The Scottish Co-operator"
(Published Weekly)
Subscription: Year 12 sh.; half-year. 6 sh.
Address, 119 Paisley Road,
Glasgow, Scotland
THE PRODUCER
Issued Monthly Price 3d.
If you want to keep in touch with
business, organization, administra
tive affairs, and problems of the
British Co-operative Movement,
read THE PRODUCER.
Published by
Co-operative Wholesale Society, Inc.
I Balloon Street, Manchester.
Post free 4 sh. 6d. a year.
The Trade and Technical Organ of British
Co-operation.
THE HOME CO-OPERATOR
A four-page magazine for
use in co-operative societies.
Issued monthly, in bundles, $1 per hundred.
Published by
The Co-operative League
Publishing Office, Willimantic, Conn. Al
bert Sonnichsen, Managing Eitor.
I
A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in vol
untary association, produce and distribute for their own use the things they need
Published monthly by The Co-operative League, 167 West Twelfth Street, 'New York City,
J. P. Warbasse, Editor. Price, $1.00 a year. Entered as second class matter, December 19,
1917, at the Post Office at New York, N. Y., under the Act of March 3, 1879.
Vol. VIII, No. 7 JULY, 1922 10 Cents
VITAL ISSUES
THE THIRD CO-OPERATIVE
CONGRESS
The Third Congress of The 69-
operative League will be held in
Chicago October 26, 27 and 28,
1922. The First Congress was in
Springfield, 111., in 1918; the second
was in Cincinnati, Ohio, in 1920.
This Third Congress will differ from
the others in that it will be a repre
sentative congress of the newly-
constituted League. The other con
gresses accepted delegates from all
true co-operative societies. At this
Third Congress only delegates from
societies which are members of The
Co-operative League will have the
right to vote. The call to the Con
gress is printed on another page of
this magazine.
The time has come when the na
tional union of co-operative societies
must take its place as the authorita
tive body in the United States. The
test of a true co-operative society
should be its membership in The
League. There must be some means
to distinguish true societies from
the false. The former should be
members of The League; the latter
cannot be.
The League is the only organiza
tion in the United States which is a
member of the International Co
operative Alliance. It is recognized
by the Alliance as the union of con
sumers' societies of this country. It
is through The League only that
societies in the United States can
become a part of the great world
Movement. The League is now tak
ing the position which the similar
national unions in the other coun
tries take. Its congresses hereafter
will be congresses of its constituent
societies. All true co-operative con
sumers' societies in the United States
are eligible to membership in The
League. For over six years now
they have been receiving the invita
tion to join it. If they remain longer
outside of the national family of
societies they may suffer the suspi
cion that they are not eligible to
membership.
The Third Congress should be an
occasion of great importance to the
Movement in this country. It should
be of historic significance, for it is
another step forward in the develop
ment of an organization of the peo
ple which, before many more years
have passed, will become the hope
of a disordered society.
THE DIFFERENCE BETWEEN CO
OPERATION AND "BUSINESS"
While politicians and business
men are running the world into a
hole, there remains one method that
can save it. That is the method of
production and distribution for use
instead of for profit. And that can be
attained by the application in the

110 CO-OPERATION
economic life of the three funda
mental principles of Co-operation.
Some day our professors of eco
nomics will wake up to the signifi
cance of these principles.
The first is: One member, one
vote. It means that human beings
vote. In the prevalent profit cor
poration each share of stock votes.
That means that money rules. The
god of dollars sits on the throne of
profit business—civilization cannot
exist in a monarchy of money.
The second principle is: Surplus-
savings ("profits"), the difference
between net cost and selling price,
shall be used for the common good
or shall be returned to members in
proportion to their patronage. The
ordinary profit-making corporation
returns this money to the stockhold
ers in proportion to the amount of
stock which each owns, after paying
big salaries to the officials who ma
nipulate the business. The co-oper
ative society in not giving it to stock
holders in proportion to their stock
holdings, but to patrons in propor
tion to their patronage, thus has no
profit.
The member of the co-operative
society puts in some original capital
to buy a supply of goods. He goes
to the store and gets goods for
which he has already invested. In
order that the society may have cap
ital to replenish the supply, every
time he takes goods away he de
posits with the society money
enough to purchase that amount of
goods again, and in addition he de
posits enough more to make up a
sum equal to the prevalent retail
price. These deposits accumulate
in the treasury. Goods are replen
ished. At the end of the quarter
the deposits are returned to the
members less the amount necessary
to pay for the goods the member has
taken and for the overhead costs. It
is a mutual banking, joint buying
and distributing business, but not a
profit business. There are savings,
but not profits. Profits are made
only where sales are made to non-
members. For convenience, the
lingo of profit business is used and
sales are spoken of. Properly speak
ing, the co-operative society makes
purchases for its members who con
sume the commodities purchased;
but the society does not sell to its
members. It distributes to and for
them.
The third principle is: If interest
on capital is paid, it shall be prede
termined and fixed at the minimum
current interest rate. This means
that, no matter how large the sur
plus-savings (or "profits") may be,
invested capital has no claim upon
them excepting to receive its fixed
interest rate. What remains, after
paying this interest, is used as de
scribed above under the second
principle. This again limits the re
wards which capital receives to the
simple wages of capital. In Co-op
eration capital is paid as a servant;
in profit-business capital rules, and
gets all.
In the course of time, when com
petition with profit-business shall be
no longer a pressing problem, the
last of these methods will be abol
ished and the second will be re
duced to a vanishing point. Today
interest must be paid because the
consumer can get interest on his
capital in the profit-making bank.
Co-operation should not deprive him
of this. When profit-making is no
longer the dominant business sys
tem, the costs of goods will be lower
and the need to pay a current retail
market price will no longer exist.
In other words, prices to the con
sumer will be cost prices, plus a
small amount for social purposes
and administration.
It is important to keep these three
principles before the people. They
must be adopted sooner or later. The
more people who know about them
the sooner the world can be gotten
out of the hole into which the profit-
system of business is rushing it.
DESPITE MISTAKES
Abraham Lincoln said, "God must
have loved the common people, He
made so many of them." Their power
to survive and perpetuate themselves
has been very great. What they have
suffered and come through is graphi
cally described in the series of books
by Eugene Sue, entitled "The History
of a Proletarian Family." Still here
they are, these common people, strug
gling along to find a way up and out
toward the light.
Now we see them attempting to
solve their problems by means of
Co-operation. There seems to be
something about this Movement that
fits it to the common people. Despite
every sort of obstacle and every sort
of mistake, it goes on succeeding and
moving toward the light. There seems
to be some sort of natural protection
always saving it, always casting about
it a spell of life.
As one studies the histories of the
British societies that date back more
than half a century, he finds the hor
rible trials through which they have
survived. The substantial society in
many an English town succeeded
after many others had failed. The
incompetent manager, the dishonest
treasurer, the indifferent and disloyal
members, the ignorant and stupid di
rectors and the scheming, profit-
business men of the town, all made
success difficult. But often after re
peated failures, after being knocked
down and battered and bruised, Co
operation has gotten up and made
good. There is no business mistake
in the whole catalog of human errors
that co-operative societies have not
seized upon and cherished as though
it were a virtue. They have fumbled
and groped, and gone on. Co-opera
tion has succeeded in spite of every
kind of stupidity.
And yet the failures of co-operative
societies are not so numerous as those
in profit-business. These plain work
ing people, unschooled in the affairs
of business, have been seen less often
in the courts of bankruptcy than the
CO-OPERATION 111
educated and once rich men from the
world of business. There is an eter
nal principle in Co-operation that
makes for success.
Now the time has come when ex
perimenting is no longer necessary.
The test by trial and error need not
be applied. In almost every country
of the world there is a national educa
tional organization which stands
ready with information on all prob
lems of Co-operation. Standardized
advice and guidance are available.
The day has passed when working
people must make the long journey
afoot to Rochdale. Rochdale and the
lessons of a thousand failures and
ten thousand successes are now with
in the easy reach of all. The great
and inexcusable mistake now is to
make any mistakes at all.
THE HONEST MANAGER
Once upon a time an honest man
appeared at the gates of heaven and
asked admittance. Peter opened the
door, looked him over, heard his plea
and asked him his name and address.
Peter then disappeared to look him
up in the heavenly address book.
After a long time Peter returned,
shrugged his shoulders and informed
the man that no such name was to
be found. But as the man, standing
before the door of heaven, looked so
honest, Peter asked him what had
been his occupation on earth. There
upon the man replied that he was the
manager of a co-operative society.
The earnest features of Peter sudden
ly became illuminated. "By the Arch
angel Gabriel," Peter exclaimed,
"that explains it; I looked in the
wrong place; the co-operative society
managers are in the Book of Mar
tyrs!"
The manager who is faithful to the
ideals of Co-operation must be long-
suffering and patient. But in the
end his reward should be the satis
faction of seeing a successful society.
And no single individual can contrib
ute more to that success than he.

112 CO-OPERATION
THIRD CO-OPERATIVE CONGRESS
The Co-operative League calls upon its constituent societies to send
delegates to the Third Co-operative Congress, to be held at
CHICAGO, ILLINOIS,
OCTOBER 26, 27 and 28, 1922
This Congress is of the utmost importance. Every society which is
a member of The League should make an effort to be represented. Only
delegates of constituent societies may vote.
All consumers' societies — distributive stores, banks, wholesales,
restaurants, laundries, bakeries, housing, recreational, and educational
societies, etc., which are members of The Co-operative League, are en
titled to one voting delegate, and an additional voting delegate for every
500 members above the first 500 or a majority fraction thereof. Dele
gates and alternates should be elected at the earliest possible member
ship or board meeting. Societies are urged to send as many other non-
voting delegates as possible.
All co-operative societies in the United States which are not mem
bers of The League are entitled to be represented by fraternal delegates,
provided that they comply with the following requirements:
(1) One vote for each member; no proxy voting. (2) If capital is paid interest
it shall be not more than legal current rate. (3) If there is surplus-saving ("profit")
it shall be reserved for expansion, used for the general social good, employed for
the common benefit of the members, or paid back as cash savings-returns ("dividends")
in proportion to patronage or service. (4) Democratic control.
In addition to the above: Producers' copartnership societies and
agricultural marketing and service societies, which comply with the
above requirements, are invited to send fraternal delegates.
Trade unions, educational societies, and other organizations, not
co-operative in form, but favorably interested in the promotion of the
Co-operative Movement, are invited to send fraternal delegates.
The courtesy of discussion may be extended to Fraternal Delegates.
Members of co-operative societies, trade unionists and individuals
who are interested in the promotion of the Co-operative Movement are
invited to attend the Congress.
Among the subjects which will be presented and discussed are
the following: District Wholesales; Model Co-operative Laws; Ac
counting; Banking; How to Meet Chain Store Competition; How to
Avoid Credit Trading; How to Promote Education; Co-operation and
the Labor Movement; the Problem of Income Tax; Store Managers'
Problems; Laundries; Restaurants; Housing, etc.
The names and addresses of Delegates, Fraternal Delegates and
alternates should be sent to the Executive Board of The League before
the first of October.
The place of meeting will be published in the magazine
CO-OPERATION, and the information will be sent to Delegates upon the
receipt of their names and addresses.
THE CO-OPERATIVE LEAGUE,
THE BOARD OF DIRECTORS.
J. P. Warbasse, President.
John F. McNamee, Secretary.
CO-OPERATION 113
SEEN HERE AND THERE
PLYMOUTH SOCIETY HAS BAD AND GOOD FORTUNE
The Plymouth Co-operative Soci
ety, like most British societies, had
its ups and downs. It was started by
eighteen people who used to meet in
Charles Godanew's shoemaker's shop
and read aloud Holyoake's "History
of the Rochdale Pioneers." They got
so much enthusiasm that they had a
meeting of organization and raised
among themselves $4.50. When this
sum had been increased to $15 they
rented a room for thirty cents a week,
borrowed a pair of scales, purchased
$12.50 worth of goods and started
business. That was in 1860.
And they have kept .hammering
away ever since. But they had trou
bles, and just the kind of troubles
that send many an American society
to smash.
The sixth year of the society was
especially troublesome. There were
many discouragements. "Then the
cash box disappeared and there was
suspicion, discharge and subsequent
court proceedings, the whole lasting
nearly a half year. For that period
there was no dividend paid, neither
could interest be paid on share capital
and in addition the little reserve
fund which had been accumulated
was absorbed. By the end of the
year confidence was not yet restored
for the year following showed re
duced membership and smaller
trade." Thus the records say.
At the end of forty years, however,
their membership had reached 25,000.
They owned Several blocks fof the
best buildings in the city, together
with their own farms in the suburbs.
Then private profit-business decided
to make a final effort to destroy the
Society. The private traders saw
their occupation going and entered
upon a campaign of slanderous pub
lications concerning the Society.
They even held an anti-co-operative
demonstration in the Guildhall. The
Educational Committee of the society
took up the challenge and so effect
By J. P. W.
ively posted and pamphleted the town
with facts and figures relating to the
society as to bring 550 new members
into it in one month. Not yet con
tent, the Traders' Defense Associa
tion of Plymouth published in the
Traders' Journal scurrilous and un
true statements about the Society.
The authors were promptly prose
cuted in the courts for libel with a
victorious result for the society.
Things went along .smoothly until
the war. The society bought a vessel
for $130,000 to carry its coal from
Blyth to Plymouth. Soon, however,
the British Admiralty discovered the
vessel and the Government took it
over to carry supplies to the North
Sea. One stormy morning she struck
a mine and was sunk. Because of the
splendid arrangements ship owners
had effected with the Government for
vessels taken over, the society came
in as a ship owner and was awarded
$230,000 for the boat—a clear profit
of $100,000—thanks to the profiteers
who were running the war.
The Society continued to prosper.
It now has 67,000 members. The
share capital amounts to $5,000,000
and the loan capital to $250,000. The
annual sales are $12,000,000. The
annual surplus-savings ("profits")
are $1,400,000. Its farms and fac
tories produce $2,400,000 worth of
goods yearly.
It has 37 grocery stores, 25 meat
stores, 20 dairy products stores, 12
bakery and confectionary stores, 7
shoe stores, 23 green grocery stores,
and .several stores for house furnish
ings, dry goods, clothing, china and
glassware. It has coal and wood
yards, fish stores, laundries, boot re
pairing shops, carpet cleaning and
dyeing works, leather and saddlery
goods, window cleaning business, to
bacco stores and drug .stores. It has
a slaughter-house, a sausage factory,
a milk pasteurizing plant, a jam fac
tory, a bakery, 8 shoe-making shops,

114 CO-OPERATION
a furniture factory, a clothing fac
tory and 9 farms of a total of 3,000
acres. It distributes over 50,000 tons
of coal a year among its members, in
which service it uses its own three-
masted schooner, motor barges and
railroad coal cars.
The society has 2,500 employees.
It owns 215 horses, 140 vans, 7 steam
wagons, 35 motor trucks, 100 railroad
cars, 17 sight-seeing automobile om
nibuses, 7 touring cars, 9 milk trucks,
113 milk wagons. On its farms it
has 215 milk cows, 336 bullocks, 850
sheep, 1,200 head of poultry and 264
pigs. Its daily milk output is 4,000
gallons and it uses 1,000 sacks of
flour weekly. Its beautiful "holiday
house" in the country is in constant
use. It makes an appropriation of
$15,000 a year for the use of its Edu
cational Committee, which conducts
classes, lectures and many other edu
cational activities. The society's
library contains over 12,000 volumes.
The members borrow 2,500 books
weekly. A monthly magazine is pub
lished. Five district branches of the
Women's Guild each hold weekly
meetings.
What this Society has done for the
people of Plymouth is beyond calcula
tion. Since it was started, it has dis
tributed to its members $115,000,000
worth of goods, in which they have
been guaranteed freedom from adul
teration and every form of cheating.
In doing this it has made a surplus-
saving for these people of $17,000,-
000. Plymouth has many poor fami
lies that have been put on a self-
supporting and .self-respecting basis
through this society. Its educational
influence has permeated every home
in the city.
But above all, its important service
has been in training simple people to
administer industry. This is the con
tribution made by co-operative soci
eties which will have a profound
significance in the reorganization of
the world.
THE CO-OPERATIVE MOVEMENT IN
MILWAUKEE
The first co-operative venture to
succeed here was a savings bank.
In 1912 twenty-five Co-operators, of
whom I had the honor of being one,
signed an application for a charter
from the State of Wisconsin. The
feature of our charter is that each
member has one vote, the law re
quires the sale of no stock, and all
of the profits of the enterprise go in
interest and dividends to those who
deposit their funds in the bank.
The charter being granted, a lit
tle room was rented in the down
town district on the second floor of
an old structure which looked more
like the office of a country doctor
than of a bank. Neverthelss, the
workers began to place their sav
ings in this bank. To keep down
expenses, the President, Mr. Charles
By DANIEL W. HOAN
Mayor of Milwaukee
Whitnall, donated his .services to the
institution for several years. The
money taken in was securely invest
ed, principally to interested persons
desiring to build homes, while the
surplus was invested in municipal
bonds. In this way the entire sav
ings of the institution were used to
encourage municipal enterprise and
home building. The deposits of this
little institution have grown with
each year until today they are
$600,000. With this growing ac
tivity, a splendid new location was
rented on the first floor of one of the
principal streets in the city. The
bank bears the title, "Common
wealth Mutual Savings Bank." It
has never charged to exceed 5 per
cent on any of the loans which it has
made to help struggling workers,
nor has it ever charged more than
a nominal fee to cover the expense
of making the loan. In spite of this,
the bank has been able to pay to its
depositors during the greater part
of its existence a larger rate of in
terest than any other savings bank
in the city. It is now regularly pay
ing 2>Vz Per cent, which is ^ per
cent higher than other banks are
paying to depositors; and during the
last year was able to declare an
extra dividend to these users of the
bank.
We are very proud of this enter
prise in Milwaukee and its increas
ing usefulness. We trust in the near
future that the Board of Directors
will add a cheeking account feature
and otherwise enlarge its activities.
The next co-operative venture to
succeed was the Milwaukee Con
sumers' Co-operative Association.
Out of the experience of the Wom
en's Auxiliary of the Railway Broth
erhoods in securing orders and sell
ing carloads of canned goods to the
railroad men, the sentiment was cre
ated for a real co-operative enter
prise to take care of this work.
In the fall of 1920 the interested
workers met and applied for a char
ter. I had the good fortune to be
elected to the board of directors at
the first meeting. When the sum of
$16,000 had been paid in in Febru
ary, 1921, we purchased our first
store. The business and member
ship grew so rapidly that we were
able to establish three more retail
stores before the expiration of one
year. By January 1, 1922, these
stores had done a business in the
eleven months of their existence of
$156,000 and were able to declare
a savings-return payable on July 1
of this year of 3 per cent. The
membership is now over 1,300, and
the business is increasing with satis
factory strides. A splendid system
of accounting has been inaugurated
at the beginning of this year, which
gives the directors a monthly state
ment of the receipts and disburse
ments of each store. When supple
mented by regular inventories we
CO-OPERATION 115
have a complete check which in
sures the success of this institution.
We are already able to buy some of
our articles in carload lots, and we
are making a drive to increase our
capital to make as many purchases
as possible along this line. During
the first year we were able to sell
our goods as low and lower than
most of the stores in the City of Mil
waukee.
At regular intervals we have held
dances and picnics, at which times
the message of Co-operation was
brought home to the enthusiastic
stockholders.
In October, 1920, while the cigar-
makers were on strike, a cigar man
ufacturing business was organized.
The stock was entirely subscribed
for by the men and women on strike,
one-third of the subscribers being
women. Its membership has in
creased until now there are 164
members. The business was started
at once and at the expiration of the
first year over 300,000 cigars were
manufactured and sold. These ci
gars are made by union workers,
who draw the union scale of wages.
While this enterprise was launched
during the financial depression, it is
on a growing and sound financial
basis.
In February, 1921, during the
general lockout of tailors, forty or
more of the strikers decided to in
vest their savings in a tailoring en
terprise. This business was started
and conducted during the worst
of the depression; nevertheless,
through the efforts of its members,
the enterprise is 100 per cent intact;
its membership has been increased,
and its business is growing.
Last, but not least, there has been
launched in Milwaukee one of the
most interesting Co-operatives of
the United States, namely: home
building for working men.
During the war I had the pleasure
of naming a committee fairly repre
sentative of all the elements of the1
community, to answer two questions.
First—Is there a housing shortage
in the City of Milwaukee?

116 CO-OPERATION
Second—If so, what, if anything,
shall be done by the municipality?
The Commission reported that
there was a serious housing problem
and that a special co-operative law
should be adopted by the legislature
to permit the incorporation of the
Co-operative Housing Company.
This was done and the enterprise
launched. The company is a Roch
dale co-operative in every feature
except two.
First—Like some English co-oper
atives, the city and county can sub
scribe to the capital stock.
Second—Instead of having one
vote for each stockholder, votes are
allowed in proportion to the number
of shares. This departure was ne
cessitated, since at that time it was
not believed that the $250,000 re
quired could be secured without it.
An appeal to the business men to
purchase the stock would have to be
made, and it was thought impossible
to sell them a 100 per cent Rochdale
plan of house building. However,
this one deviation can be remedied
later on when the investing business
men are gradually paid off by the
occupants of the homes. The com
pany was organized for $500,000.
Half of this was preferred stock,
guaranteeing a return of 5 per cent.
This was the stock that was sold.
The city and county each took $50,-
000; and the remainder was sold to
business men. Twenty-eight acres
were then acquired in a beautiful
location within a block of street car
service. The land was platted with
out charge by the very best city
planning experts. These lots are
40x100 feet, affording ample sun
light and air as well as space for a
garden. In the center of the plot a
playground 204x466 feet is pro
vided, which will furnish play space
for the children. Twenty-five houses
are now under roof; six others will
be under roof in two weeks.
Plans are being carried out to put
on a drive to supply the necessary
funds to build at least one house a
day during the present summer and
fall. We have sufficient information
from the cost sheet already worked
out to state that these homes will be
turned over to the occupants for
from $1,000 to $1,500 less than they
could be secured under the old plan.
This is possible—
First—Because of the donation of
many services.
Second—The elimination of real
estate men, contractors and other
useless extravagance.
Third—In the purchase of the
material for the houses at wholesale.
The union scale and hours of em
ployment have prevailed through
out. There has been a remarkable
demonstration of the efficiency of
the organized crafts here.
The occupant of a home does not
obtain a deed. He subscribes for
common stock equivalent to the
value of the cost of his home and lot,
which will be around $4,000 for a
6-room house. They will pay down
10 per cent of the cost of their stock,
which money will be used to retire
or pay off that much of the pre
ferred stock. On the unpaid bal
ance they will pay interest. All
other expenses, like taxes, water, re
pairs, etc., will be paid to the co
operative company in monthly in
stallments. While figures are not
yet available, I predict that the ren
tals ordinarily paid by workmen for
similar houses will not only pay all
the expenses of the houses, but will
pay for the stock. The payments
will cover both fire and life insur
ance so that in the event of disaster
the members of the family are pro
tected. While the occupant does not
secure a deed, he is given a contract
which is much more than a lease.
It will guarantee to him permanent
tenure to himself and heirs while he
obeys the rules of the co-operative
company.
Another advantage of this method
of home owning for the workers is
that in case of severe illness or ne
cessity of leaving the city, the com
pany agrees to purchase back the
occupant's paid-up stock at the par
value.
I
As rapidly as the occupants of the
homes pay for their common stock
the preferred stockholders will be
paid off and the occupants will be
come the sole managers of the enter
prise. Its popularity is assured by
the fact that there are already more
than 900 applicants for the seventy-
five or more houses, finances for
which are assured.
We have no hesitation in saying
CO-OPERATION 117
that the co-operative offers the best
solution of the housing problem
which has yet been devised. Even
the socialists of Europe have aban
doned their position for municipal
houses in favor of the co-operative
idea.
In closing, let me say again that
Co-operation has taken a firm hold
in the City of Milwaukee.
VACATIONS FOR CO-OPERATORS
In the dog days of summer one's
thoughts naturally turn to the sub
ject of vacations. While only a hand
ful of co-operatives in this country
have considered establishing vacation
camps for their members, it is a com
mon practice abroad to provide such
facilities. For example, the Union
Des Cooperateurs of Paris, the Fed
eration of all co-operatives in Paris,
has established five vacation colonies
for the exclusive use of its members
and the members of societies affiliated
with the National Federation of Con
sumers' Co-operative Societies. Four
of these summer camps are on the
seacoast and one is in the mountains.
Co-operators who present a certificate
from their society, certifying that
they are members, are entitled, at a
moderate rate, to avail themselves of
the co-operative camps. There is no
charge for children under three years
of age; children from 3 to 9 years of
age are charged half-rates.
At Limoges and at Nancy, the local
co-operative societies in conjunction
with their municipalities, have estab
lished a colony where several hundred
children may spend their vacations.
The Federation in Paris is considering
the establishment of summer camps
for the children of their members.
They state that they are "preparing
for the day when there will no longer
be a single child playing on the un-
healthf ul and hot streets of Paris dur
ing vacation time." It is proposed to
have the Committee on Education of
the Parisian co-operatives issue sav
ings-stamps which would assist Co-
operators to save for vacations for
their children.
In England, the Co-operative Union
has arranged a holiday tour for adult
Co-operators. The party will visit
some of the most beautiful touring
centers of Scotland. For the junior
Co-operators, .summer schools will be
conducted at vacation camps owned
by the Royal Arsenal Co-operative So
ciety of Woolwich and the Nelson Co
operative Society. A group of sev
enty-five members of The Woolwich
Society will make a tour of the co
operative societies of Germany under
one guidance of the German Union.
The summer schools combine pleasure
with education. In addition to co
operative courses suitable for boys
and girls between the ages of 14 to
20, hikes and other outdoor activi
ties are arranged.
All these good tidings offer little
personal consolation to Co-operators
in the United States. But it should
be only a question of a few years be
fore the movement in this country
will be able to make provisions for
the recreation of their members. It
is, after all, up to the co-operators
themselves to support their enter
prises loyally, so that they will be in
a position to branch out into recrea
tive activities.

118 CO-OPERATION CO-OPERATION 119
CO-OPERATIVE INSURANCE IN NEW YORK
By BORIS FOGELSON
Secretary, Co-operative Fire Insurance Company of Woodridge, New York
Three-quarters of a billion dol
lars' worth of fire insurance is
in force among the co-operative
fire insurance companies in New
York State, according to the ad
vance report for 1922 issued by the
Insurance Department of the State
of New York. A study of the offi
cial figures reveals the fact that co
operative insurance is more wide
spread than the general public im
agines.
In the State of New York alone
there are 166 co-operative fire insur
ance companies of various kinds, in
cluding advance payment, and
county and town assessment com
panies. The combined fire insur
ance in force among all these com
panies at the end of 1921 was $743,-
386,682, a gain for the year of $41,-
673,848 in the amount of insurance
written. The fire losses in New
York covered by co-operative insur
ance during 1921 amounted to $1,-
988,004.19.
The 31 advance premium compa
nies furnished insurance at a cost of
$5.60 per $1,000; the 68 county as
sessment companies at a cost of
$3,70 per $1,000; and the 67 town
assessment companies at a cost of
$2.70 per $1,000, an average cost
of $4.00 per $1,000 of insurance.
The total income of all the New
York co-operative insurance compa
nies in 1921 was $3,302,358.35. The
assets of these companies in excess
of liabilities during 1921 amounted
to $1,370,610.
The foregoing figures apply only
to the state of New York. The fig
ures for farmers' mutual fire insur
ance all over the country are even
more surprising and encouraging.
The first farmers' mutual fire insur
ance company came into existence
about 1825. By 1850 there were
only about fifty companies in exist
ence. The year 1916, however, saw
1,950 such companies in existence.
The Department of Agriculture is
authority for the statement that on
January 1, 1915, there were 1,947
farmers' mutual fire insurance com
panies, carrying $5,264,119,000 of
insurance. At the end of 1918 there
were 2,000 companies with $6,400,-
000,000 of fire insurance in force.
At the present time there are prob
ably between six and one-half and
seven billions of fire insurance writ
ten by farmers' mutual insurance
companies. These co-operative as
sociations in 1916 carried about
42.5 per cent of all insurable
farm property in the United States.
At the present time about half the
insurable farm property is protected
by the farmers' co-operative insur
ance companies.
The New York co-operative insur
ance societies are federated through
the New York State Central Organ
ization of Co-operative Fire Insur
ance. This organization has been
in existence for forty years. It has
for its objects the fostering and pro
tection of the interests and general
welfare of the co-operative fire in
surance companies, by enabling
them to secure greater conformity
in their business. It also endeav
ors to secure legislation for the
protection of legitimate co-opera
tive insurance societies.
The April number of CO-OPER
ATION was in error in stating that
the cost of every hundred dollars'
worth of insurance written by the
Co-operative Fire Insurance Compy-
an of Woodridge, N. Y., was less
than 1 per cent. The correct fig
ures are much higher—$9.06 per
$1,000. The cost varies from $2.60
to $13.00 per $1,000, depending
upon the number of rooms in the
buildings insured. The error in cal
culations was caused by failure to
notice two important little decimals.
Because of the limitations placed
upon co-operative insuranee compa
nies by the law of New York, no
more than $7,000 in insurance may
be written against one risk by a
single company. It was therefore
found necessary by the Co-operators
of Woodridge to organize a subsidi
ary fire insurance company, to write
additional insurance on the proper
ty of the members. The demand
for insurance has been so great that
a third company is now in process
of organization at Woodridge.
The total insurance in force in
both of the co-operative fire insur
ance companies now operating at
Woodridge was $7,251,510 on April
1. This amount covers 2,054 pol
icies.
SPURIOUS CO-OPERATION IN
SCRANTON
Press reports indicate that one
Ignatz Stapinski is to be tried in
Scranton for selling stock in a "co
operative" association, under the
charge of "obtaining money under
false pretenses." Stapinski's de
fense is that purchasers of the stock
take a chance the same as in any co
operative venture.
The interesting fact is that this
maji sold over $13,000 worth of
stock in a scheme that was in no
sense co-operative. It could not
have succeeded had it ever been
started. Still, working people put
$13,000 into this thing when they
are not willing to properly finance a
really true co-operative society in
Scranton, which is struggling along
for want of adequate funds. Some
day the workers will wake up and
finance co-operative education. Un
til they do they will continue to
poke their money into co-operative
rat holes.
ADVICE TO STORE MANAGERS
Store Policies
"Good service and best quality of
goods" should be your motto. Do
not cut prices, but do not let your
people think the store stands for
high prices. Occasional "specials"
are good to interest non-members
so that you have an opportunity to
get acquainted, and make more
members for the store. The mem
bers should be trained, however, not
to expect "specials." The "tricks of
the trade" whereby private stores
make up on other prices for what
they lose on "specials" should be
shown. Emphasize the fact that the
co-operative store always gives ex
act, honest weight. When compet
itors do not do so, attention may be
called to that fact. Also, attention
may be called to sizes of packages
and cans of competitors which often
deceive the public.
Polite, courteous salesmen mean
much for success. Learn the names
of the customers, and greet them by
name cheerfully. Be especially kind
and careful in serving children.
Never palm off poor stuff on a child.
Let it be known that mothers may
safely send their children to the co
operative store, and do not keep a
child waiting in order to wait upon
an older person.
If goods are not satisfactory, wil
lingly exchange same, or refund the
money. In the case of goods that
cannot be exchanged always so state
when the goods are bought.
Telephone orders should be re
ceived by a person with a pleasant,
courteous manner. This is highly
important. Telephone orders should
be received up to a certain hour for
early delivery. Customers should
understand that late orders cannot
be delivered until afternoon or next
day. If membership is widely scat
tered the districts should be zoned,
and regular hours kept for delivery
in each district. Watch the cost of
delivery. It is often too high for
the amount of business done.
A store policy should be outlined
in regard to routine work, manage
ment, advertising and treatment of
help; and it should be lived up to
by manager and all employees. Em
ployees should not be allowed to
wait upon themselves. Neither

120 CO-OPERATION CO-OPERATION 121
should members or directors be al
lowed behind the counter, unless
the manager signifies his need on
rush days. A strict rule should be
made against eating and sampling
goods, and the manager and direct
ors must not set a bad example in
this respect. Employees should be
taken into the confidence of the
manager in many things. A weekly
employees' meeting should be held
to discuss ways of bettering the
store, to learn better methods of
making sales, to discuss store prob
lems, to settle grievances, and to
study Co-operation in order to talk
intelligently to members and cus
tomers.
Selling
Do not lose any time in pushing
goods over the counter. Give peo
ple what they want, but increase
sales by good display and store ad
vertising. Put posters on window
and send out weekly bulletins con
taining store news and co-operative
education. Use "The Home Co-
operator" and insert a price bulletin.
Sell at same price as your com
petitors, but give better service and
quality. Your methods must be as
efficient as theirs. Price-fixing is a
most important factor in successful
store-keeping.
Average sales of chain stores are
about $800 a week per man. Most
of them are on a 9 per cent over
head. Watch the average percent
age of overhead to sales constantly.
If employees are not 100 per cent
useful they should not be retained.
Goods should be sold at the reg
ular prices charged by private
tradesmen. It is fatal to cut prices.
It is a confession of weakness, and
the co-operative store cannot keep
it up as long as the chain store. Be
fore the store starts, the members
should be given education on store
competition and the possibility of
not always meeting the chain store
prices.
Self-service co-operative stores
may be able to compete with the
chain store. It is worth trying. The
chain stores today work their men
very hard. They must keep each
one busy every minute. There are
no slack moments. But in our co
operative stores it is quite different,
and much time is often wasted. This
must be watched.
Chain stores try to get the cus
tomer to buy as much as possible
and to be served too quickly. They
force sales. This should not be done
in a co-operative store. You should
only try to sell what the customer
really needs. The co-operative
manager does not need to be clever,
but he should try to sell all the cus
tomer needs, and keep her from go
ing to any other store. Keep goods
well in sight so the customer will not
forget her wants.
Special Sales
Special sales may be indulged in
if bona-fide. Get rid of slow-mov
ing goods in this way, and advertise
a few specials weekly. Do not
adopt the policy of price-cutting,
but show the value of goods you
want to move. Suggest ways of us
ing certain goods you want to dis
pose of by demonstrations. The
Women's Guild should show cooked
articles in the store and give the
recipes for using such goods.
SUBSCRIPTION CONTEST
The League offers a prize of a
copy of "The Consumers' Co-opera
tive Movement," by Sidney and Be
atrice Webb, to the person who will
send in the most subscriptions to
CO-OPERATION during the period
July 1 to October 1. The contest
is open to all. Sample copies of the
magazine and subscription blanks
will be sent on request to those de
siring to enter the contest.
CO-OPERATION is the only
monthly magazine published in this
country devoted to the Consumers'
Co-operative Movement. It has no
rivals, and it should not be a diffi
cult matter to interest labor and
farmer groups in the only magazine
which serves their interests as con
sumers. Co-operative societies, as
well as individuals, are eligible to
enter the contest.
CO-OPERATIVE COURSE
On June 2 the course of ten lec
tures on the Co-operative Move
ment, given by members of The
League staff, came to an end. This
has been a highly successful course.
While the average attendance was
only twenty (previous classes have
been much larger) the students
made up for the lack of numbers by
their earnestness and intelligent in
terest. The discussions following
the lectures were evidence of keen
and unflagging attention by the
students.
The course covered a discussion
of the philosophy, aims and ideals of
Co-operation, the history and extent
of the Movement abroad and in the
United States, the consideration of
practical problems of co-operatives,
and many other aspects of Co-oper-
tion. Stereopticon pictures were
used in connection with some of the
lectures.
The last lecture of the course, on
the Ethics of Co-operation, was giv
en at the co-operative cafeteria.
All the other lectures were given at
the new League House. During the
next few weeks the students will
visit some of the co-operative so
cieties in New York, to study Co
operation in practice. There is
much demand that an additional
course be given. Arrangements will
be made for an extensive course to
be given early in the fall.
THE MISTAKES OF CORONA
It seems cruel to stick a pin through
a society that has failed, and hold it
up for public examination, as one
would with a new species of beetle.
One feels almost sacrilegious in criti
cizing an effort that called forth loy
alty, devotion, and that entailed sacri
fice. But a true regard for the wel
fare of other societies makes it neces
sary to critically examine failures, in
order that lessons and experience may
be gained from others' troubles. Let
us therefore consider the series of
mistakes that led to the failure of the
Corona Co-operative Society, of Cor
ona, Long Island, N. Y.
Mistake No. 1 consisted in tieing up
with the Community Wholesale Pur
chasing Corporation, a spurious co
operative.
Mistake No. 2 consisted in permit
ting the manager appointed by the
co-operative fakers to keep his job.
Before the members were aware of it,
there were several serious leaks. A
new manager was hired after all the
damage had been done.
Mistake No. 3 was the old, familiar
blunder of starting with insufficient
capital. While the society was cap
italized at $10,000, only about $1,400
was ever collected. As a consequence,
it was impossible to open an attrac
tive store, or to buy groceries in large
enough lots to get good prices.
Mistake No. 4 was the final and the
fatal one, and we would call particu
lar attention to it. A creditor whose
bill had not been paid because the
store insisted on deducting for bad
goods delivered, brought a suit for
his money. Of course the store had
a good counter-claim against the cred
itor, for the butter and eggs that had
been sold were unfit for consumption.
Feeling that the court would, by some
miracle, know all these facts, the so
ciety put in no defense, and did not
even appear in court. The inevitable
result was that the creditor got a
judgment against the store by de
fault, and while the members were
peacefully resting upon their moral
right not to pay for damaged goods,
the creditor swooped down upon the
store, and, with the aid of a marshall,
carried off the cash register and hun
dreds of dollars worth of goods. That
was the end. Other creditors swarmed
into the store for their money, and
the business was closed down.
Readers of CO-OPERATION have
had their attention called to Mistakes
No. 1, 2 and 3. We would now par
ticularly emphasize the importance of
never permitting a judgment to be
taken against your societies by de
fault. If your creditors are rightfully
entitled to payment for their goods,
pay them if you have the money. If
they are not, interpose a defense in
court.

n
122 CO-OPERATION CO-OPERATION 123
CO-OPERATIVE MILK AND
HEALTH
Since the organization of the
Franklin Co-operative Creamery As
sociation by the citizens of Minneap
olis there has been a marked de
crease in the rate of infant mortality
and deaths from typhoid fever, due
to the improvement in the quality
of milk sold by the "Co-op." Com
menting on the remarkable improve
ment in the quality of the milk, Dr.
Harrington, Commissioner of Public
Welfare of Minneapolis, reported:
"One of the happy results of the
bettered milk supply is that the rate
of typhoid fever deaths, 76 per 100,-
000 population in 1921, is the lowest
recorded in Minneapolis, and one of
the lowest in the United States. It
represents three deaths for the year
1921. Another pleasing result noted
was a lowering of the infant mor
tality rate from 65 in 1920 to 55 per
thousand births in 1921. Still another
result is that more milk is being
sold."
This improvement can be traced
directly to the fact that the Franklin
Co-operative Creamery is now the
largest milk distributor in Minneap
olis; §130,000 worth of dairy prod
ucts are now being supplied monthly
by the Co-operative, at a lower cost,
and for a better product, than have
ever been supplied by dairy compa
nies organized for profit. This con
sumers' co-operative is saving the
lives of many babes and adults, by
eliminating the contaminated milk
formerly supplied by private deal
ers. Co-operation and health go
hand in hand.
NEWS AND COMMENT
A NON-CO-OPERATIVE
DEFEATED
Co-operators will be gratified to
know that the "Co-operative League
of America," a non-co-operative or
ganization of Pittsburgh, which has
been making an effort to secure le
gal sanction to operate in Iowa and
in the Province of Ontario, Canada,
has suffered a double defeat. In
Iowa the State Executive Council,
for the second time within three
months, refused it permission to op
erate in that state. The matter was
referred to the Attorney General of
the state for his attention.
In Ontario, Canada, the "league"
attempted to secure special per
mission to operate in that province,
by means of a private bill introduc
ed in the Ontario legislature. The
Co-operative League advised the Co
operative Union of Canada of the
real nature of this organization. The
Canadian Union, realizing the me
nace to genuine co-operatives, cam
paigned against the bill, and called
the attention of members of the leg
islature to the fact that the Pitts
burgh organization was not under
the Canadian law entitled to use the
name "Co-operative." The Minister
of Agriculture oposed the bill. He
said: "I am in favor of anything
that will encourage thrift and sav
ing, but there are certain dangerous
features in this proposal. The use
of the word 'co-operative' should be
very carefully safeguarded." The
bill was killed in committee early in
June.
The Pittsburgh "Co-operative
League" is a declaration of trust so
ciety in which the members have no
control. It is not co-operative and
is guilty of gross misrepresentation
in claiming that it is.
THE STUFF THAT SUCCESS IS
MADE OF
The Goodhue, County, Minn., So
ciety has a big department store at
Red Wing and stores in four other
towns. AnauthoritativereporttoThe
League gives information concern
ing some of the officers and princi
pal members of the society. A co
operative society with such men of
vision, loyalty and intellgence is bound
to prosper, if they have the right
sort of co-operative education. They
are the stuff that co-operative suc
cess is made of:
L. W. Hempftling: President of the
company, and without question one of the
'best Co-operators in the state. He preaches
and practices it.
Fred A. Scherf: Editor of "The Organ
ized Farmer," and Secretary of the com
pany.
Vie H. Carlson: Treasurer of the com
pany, and a well-read farmer, who is al
ways voicing his opinion regardless of op
position.
O. G. Harlis: Vice President, and a
booster.
Joe Reinbold: One of the first members,
a fireman. Always has advanced his per
sonal funds to company when things looked
the blackest. One of the best men.
J. C. Swanson, a well-read booster, who
has put in more capital to make the com
pany succeed than any other man. He al
ways backs up his beliefs with his money.
Regardless of conditions and other nearby
failures, he is sure of his faith in the Co
operative Movement. He has studied the
history of the Movement in many countries.
Get these men interested in anything and
they will put it over. Every one is a
worker.
THE RUSH RUN SOCIETY A 100
PER CENT INVESTMENT
The Rush Run Co-operative So
ciety of Rayland, Ohio, gave a dem
onstration of their social solidarity
by the manner in which they dis
posed of their surplus-savings for
the year 1921. This little society,
composed for the most part of for
eign-born miners, donated $1,500 to
the needy non-members at Rush
Run, Ohio. A donation of $150 was
made for the relief of famine suf
ferers in Russia, and $50 was donat
ed to the labor press. In spite of
these liberal gifts, the society was
able to pay 5 per cent interest on
capital and a savings-return of 4 per
cent, amounting to $1,138. A small
sum was also assigned to the reserve
fund. Inasmuch as the capital of
this society is only $927, the return
to members in the year 1921 was
considerably in excess of 100 per
cent of the capital invested. This
society is affiliated with The Co-op
erative League.
RUSSIA
The Central Union of Russian Co
operative Societies (Centrosoyus) is
busy buying up and collecting all
kinds of raw materials at various
ports. Preparations are being made
by Centrosoyus for carrying on an
extensive export and import trade.
The goods collected by the society by
April 1 for export amounted in value
to $1,290,000, of which $500,000
worth had been delivered to foreign
ports. The total value of goods pur
chased by Centrosoyus for delivery
to ports by May 15 amounted to $3,-
256,000. The goods destined for ex
port consist of flax, hemp, tow, sheep
and camel wool, bristles, furs, goat,
sheep, calf and colt skins. Centro
soyus accepts raw materials for ex
port on a commission basis. The co
operative societies of Russia now oc
cupy a favored position, as compared
with private business. Co-operatives
are free to carry on exporting and
importing, without being hampered
by the many restrictions on private
business imposed by the Government.
CZECHOSLOVAKIA
In the coal basin of Moravian Os-
trau, the consumers' co-operative
sociery Budoucnost (The Future) is
rendering profit business in many
towns a thing of the past. At the
close of 1921 the society had 65,000
members and served 320,000 consum
ers. The society came into existence
through the merging of fourteen inde
pendent societies at the end of the
war. In spite of desperate efforts on
the part of private traders to injure
the co-operatives, they have been
growing until now they have cap
tured the entire business of many
districts. At the close of the year,
the Budoucnost society had 187
stores, nine of which had dry goods
departments. Arrangements are be
ing made for opening other stores,
and it is expected that the society
will have 200 stores during 1922. The
turnover last year amounted to 250,-
000,000 crowns. A powerful whole
sale society exists which has ex-

124
panded so rapidly that it is now
necessary to open four branch depots.
A co-operative bakery and flour mill
are also being opened. The society
employs 800 workers. Despite the
bitter political fights going on in this
new republic, the co-operatives are
strictly non-political; members of all
parties sink their differences and
unite in supporting the co-opera
tives. The Czech parliament in
January passed a law granting cred
its to the co-operative agricultural
societies, the societies of artisans,
and labor societies. The societies of
consumers received no loans.
ROUMANIA
The number of co-operative socie
ties in Roumania has quadrupled
since 1919. In 1919 there were 360
societies in agricultural communities,
for the joint purpose of sale and
distribution. These societies had a
membership of 18,087, and a paid up
capital of 2,174,460 Lei ($435,000 in
normal currency). By March, 1921,
the number of societies had grown
to 1,428, the membership was 79,660,
and paid up capital 10,655,634 Lei
($2,131,000 normal currency). The
societies have a two-fold function:
they dispose of the agricultural pro
ducts raised by their members, and
they supply the members with sta
ples, agricultural machinery, manu
factured goods, etc. Members in the
mountainous parts of the country dis
pose of their timber through the sales
societies, and receive in return the
cereals and other products of the Co-
operators in the agricultural section
of the country. Not only is the do
mestic trade carried on through the
co-operatives, but arrangements are
being made for organizing the im
portation of a considerable quantity
of agricultural machinery and imple
ments, manufactured goods, etc.,
through the co-operatives.
DENMARK
The Danish Co-operative Bank con
tinued to grow during 1921. Two pri
vate banks were bought out by the
CO-OPERATION
co-operative during last year, and
control was secured in three others.
The central bank in Copenhagen now
has 46 branches, which in turn have
45 sub-sections. During 1921 the
turnover of the bank increased from
10,500,000,000 crowns to 11,500,000,-
000 crowns; the net profits during
the year amounted to 2,309,870
crowns. Of this amount, a million
crowns were placed in the reserve,
which now amounts to 18,000,000
crowns. ———————
INTERNATIONAL C O - O P E R A-
TIVE SUMMER SCHOOL
Brussels has been selected as the
city where the Second International
Co-operative Summer School will hold
its sessions. The school opens July
22d and ends August 5th. It was
organized under the joint auspices of
the British Co-operative Union, the
Belgian Co-operative Union, the Peo
ple's House at Brussels, the Belgian
Labor College and the International
Co-operative Alliance. Well known
co-operative teachers will lecture in
English, French and German on Co
operation and allied topics. Lectures
will be held in the mornings, the
afternoons being devoted to visits to
co-operative establishments.
DEMOCRATIC CONTROL AND
STRIKES
A recent Monthly Circular of the
Labor Research Department (of
which G. D. H. Cole is Honorary
Secretary) has just come to us from
London. In it is the story of the
strike of the 200 employees of the
Bishop Aukland Co-operative So
ciety, from which we quote:
When the National Union of Distributive
Workers called out their members, a new
staff was engaged to take the place of the
strikers. Both sides have appealed to the
members of the Co-operative Society, the
Union claiming that it is fighting for the
right of collective bargaining and against
the employment of blackleg labor. The
directors took a ballot of the members and
secured a majority of four to one in favor
of their policy. Later, at a special mem
bers' meeting, which was called by requi
sition, a resolution demanding a renewal
of negotiations and complete reinstatement
of the employees was carried by 495 votes
to 2. The half-yearly meeting of the so
ciety, which was held subsequently, was
conducted amid considerable uproar. The
committee's report was rejected, and the
committee finally left the platform. The
Chairman of the local Trade Union Com
mittee took charge of the meeting, and a
resolution was passed calling on the com
mittee to reopen negotiations or resign.
Does that read like an open shop
fight conducted by American capi
talists? Can you see the sharehold
ers of the U. S. Steel Corporation
unseating Judge Gary from the
platform at a stockholders' meeting,
putting the Chairman of the Amal
gamated Labor Organizations of the
Steel Industry in his place, and call
ing by a vote of 250 to 1 for the dis
charge of all scab labor in the steel
towns of Pennsylvania, and the in
stallation of union help—and call
ing for Mr. Gary's resignation if he
doesn't comply? Co-operation is a
workers' movement, and not the
cruel, death-dealing standards of
capitalism, but the equitable stan
dards of humanity prevail within it.
CANADIAN CO-OPERATIVES
PROGRESS
The co-operative societies in Can
ada, faced with the same economic
depression that prevails in the United
States, are still continuing to serve
the consumers. Here are some prom
ising examples of Co-operation in
Canada.
The British Canadian Co-operative
Society of Cape Breton, in existence
sixteen years, had a turnover during
the last half year of $622,674. The
net surplus saving during that period
was $73,351. As the share capi
tal amounts to $134,564, this sur
plus represents a 54.5 per cent re
turn to the members on the capital
investment or 109 per cent per an
num. These savings were returned
to the members in the form of cash
at the rate of 11 per cent on pur
chases. The society has a member
ship of 2,286. There are five branches
connected with the society which sup
ply the membership with groceries,
meats, men's wear, dry goods and
CO-OPERATION 125
clothing. This society is to be con
gratulated on the creditable showing
at this time.
The Guelph Co-operative Associa
tion during the past half year had
sales of $122,995. Though this repre
sented a loss in trade, due to hard
times, the society was able to make
a netsurplus-saving of $3,173, which
was distributed to the members as
a 3 per cent savings return. This
was equal to a return of 50 per cent
on the capital investment.
The Industrial co-operative Society
of Valleyfield, which has been in ex
istence since 1903, and the oldest so
ciety to be affiliated with the Ca
nadian Union, paid a five per cent
savings-return to members.
I. C. A. REPORT ON RUSSIA
The special committee appointed by
the International Co-operative Alli
ance to investigate the condition of
the co-operatives in Russia completed
its mission and submitted a prelimi
nary report to the Central Committee
of the I. C. A. The Committee con
sisted of the following members:
Thomas Alien, A. W. Golightly, J.
Hawkins, Joseph English and Henry
J. May, of Great Britain; Victor
Serwy, of Belgium, and Ernest Pois-
son of France. The delegation spent
a strenuous month visiting co-opera
tive societies in Russia. Their report
states that the Co-operative Move
ment in Russia occupies a unique po
sition in influence, power and the ex
tent of its operations; and that the
evidences they saw convinced them
that a complete internal transforma
tion of the Movement is being accom
plished in the direction of uniformity
in principle with the Movements of
other countries.
They recommended that the eco
nomic resources of Russia make it
imperative and mutually advantag
eous that economic relations with
other countries should be established,
preferably through an International
Co-operative Wholesale Society and
an International Co-operative Bank.

126
CO-OPERATION
WORD FROM THE FIELD OF ACTION
KALAMAZOO HAS ABLE MANAGE
MENT
You will be glad to know the Kalamazoo
Society is making some progress, and that
we are hopeful of the future and the ulti
mate success of our society under the man
agement of Mr. Boekeloo, who was our
original manager.
Dr. Warbasse will remember coming out
here and giving us a talk at a meeting
called to hear him, and that at the time
he was here we were having considerable
difficulty both financial and personal. I am
sure he will be glad to learn that the fullest
harmony now prevails and has prevailed for
more than two years, and that we are
slowly but apparently surely coming out of
our difficulties.
We are doing a retail grocery and bakery
business combined, of approximately one
hundred thousand dollars a year, and are
taking in something more than we are pay
ing out, but the margins that prevail in
Kalamazoo make it very difficult to show
substantial earnings. However, the mem
bership as now constituted is not expecting
"dividends" nor unusual profits, and all are
harmoniously co-sperating with their trade
at least, and we are confident we will suc
ceed in establishing a co-operative unit that
will last and grow into an important factor
in the community.
WILLIAM SHAKESPEARE, JR.
Kalamazoo Co-operative Union, Kalamazoo,
Mich.
Our society is composed of 137 families
and did a business in 1921 of $99,535.38.
We did not make a great deal of money.
However, we were able to pay 6 per cent
on capital stock and 7 per cent on loan
capital, and had a small surplus. The first
three months of 1922 we made a trade gain
of 22 per cent. The future looks very
good to us.
J. A. BOEKELOO,
Manager the Kalamazoo Co-operative
Union.
(The report of this society for the first
three months of the year shows that they
are doing a business at the rate of $120,000
a year. During that time their bakery
baked and sold 21,410 loaves of bread.)
PROGRESS AT FAIRHOPE, ALA.
Prices were high in Fairhope, and
became scandalously so during the war.
The workers finally got together and decid
ed to start a store. They rented a shack
for a few dollars in February, 1921, and
three months later were doing so well even
at underselling, thus bringing down prices
in general, that they were able to rent a
store for $65 a month. The membership
up to date is only 90, with a patronage of
75 per cent who are almost entirely farm
ers. The membership fee is $25. There
was a small nucleus of Co-operators in
Fairhope who had had experience in Mobile
and elsewhere.
Then the society decided to move to a
better location, but there were no stores to
be had, and the idea of building was con
ceived. A loan association to finance the
new building was easily formed and has
many advantages. Shares of $100 were
issued to members of the Co-operative only,
interest at 7 per cent; money will be re
deemed in ten years. The store has now
moved into its new quarters—a two-story
red brick building. The store supplies gen
eral merchandise, dry goods, hardware,
groceries, feed, fertilizer, smoked and dried
meats, and baked goods. During the past
year feed and fertilizer comprised one-
third of the business done. In the new
quarters space has also been provided for a
bank and a bakery. Enough money has
already been promised to have this bank
develop into the largest one in Baldwin
County. The society is also in a position
to buy in carload lots. The monthly turn
over amounts to $6,000.
ANNA B. ZELLMAN.
Fairhope, Ala.
QUICK RESULTS WANTED AT
CLEVELAND
Money is coming in somewhat slowly, in
subscriptions to the stock of the City Co
operative Dairy Company, although consid
ering the very stringent times and the great
unemployment, it is not so bad, after all.
The_ trouble is that most of us are too im
patient. We want a big thing like this to
develop over night, when, as a matter of
fact, it should be preceded by an intensive
campaign of education covering a consider
able period. People cannot receive and
assimilate new ideas very quickly. The
growth of ideas takes time. There is no
use trying to jump across this part of the
co-operative work. If we do we find our
selves in hot water a good share of the
time. We are doing some educational work,
and we are shortly going to be able to have
the business going.
0. J. ARNESS,
City Co-operative Dairy Company.
Cleveland, Ohio.
(This Consumers' Co-operative Dairy has
already raised about $30,000 through the
sale of stock. A plant is being installed.
This dairy is controlled by the consumers
of Cleveland, and is to be operated along
the lines which were followed by the Frank
lin Co-operative Creamery of Minneapolis.)
CO-OPERATION
PUBLICATIONS
OF THE CO-OPERATIVE LEAGUE
HISTORICAL Per Copy Per 100
3. Story of Co-operation .................................................$ .10 $6.00
7. British Co-operative Movement ........................................ .10 6.00
10. A Baker and What He Baked (Belgian Movement)...................... .05
38. Co-operative Consumers' Movement in the United States............... .06 4.00
39. Consumers' Co-operative Societies in N. Y. State, (Published

THE CO-OPERATIVE LEAGUE
(Member of The International Co-operative Allinace)
167 West 12th Street, New York
An educational organization for teaching the history, principles, methods and aims of the
Co-operative Movement and for the promotion of Co-operation in the United States.
Join The League and thus help promote the educational work of the Co-operative
Movement. Individual Membership, $1.00 a year. Subscribe for CO-OPERATION,
the Monthly Magazine of The League, and keep in touch with the Movement.
Enclosed find $ for Subscription for CO-OPERATION, $1.00.
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Name.. .
Adda-ess.
Date....
Co-operative Central Exchange
Wholesale Grocers and Jobbers,
Bakers
We supply goods to Co-operative Societies ONLY
We are owned and controlled by Co-ooeiatlve
Societies.
We are organized to enable Co-operative Societies
to do collectively what they cannot do indi
vidually.
Co-operative Central Exchange
Offices, Warehouses and Plant:
Winter Street and Ogden Are.,
SUPERIOR, WIS.
Co-operators* L.td. Mutual Fire Insurance Co.
is now writing Insurance in State of Wisconsin.
The Canadian Co-operator
Brantford, Ontario,
Canada
The organ of the Canadian Co-opera
tive Movement, owned by and con
ducted nnder the auspices of The
Co-operative Union of Canada.
Published monthly;
7Sc per annum
MOVING PICTURES
and
Stereopticon Lectures
may be rented from
THE CO-OPERATIVE LEAGUE
167 West 12th St., New York City
1. "Soit« Examples of English Co-operation."
Moving pictures ot factory processes (two
reels) . ...............................85.00
H. "Co-operation in the United States."
With 63 Stereopticon views ........... .$3.00
3. "Tile Co-operative Movement in Bnsssla."
With 36 colored Stereopticon views... .$3.00
Co-operation in Scotland
In no part of the world is Co-operation further
developed, or more successfully practised than in
Scotland. If you wish to keep in touch, read
"The Scottish Co-operator"
(Published Weekly)
Subscription: Tear 12 sh.; half-year, 6 sh.
Address, 119 Paisley Road,
Glasgow, Scotland
THE PRODUCER
Issued Monthly Price 3d.
If you want to keep in touch with
business, organization, administra
tive affairs, and problems of the
British Co-operative Movement,
read THE PRODUCER.
Published by
Co-operative Wholesale Society, Inc.
1 Balloon Street, Manchester.
Post free 4 sh. 6d. a year.
The Trade and Technical Organ of British
Co-operation.
THE HOME CO-OPERATOR
A four-page magazine for
use in co-operative societies.
Issued monthly, in bundles, $1 per hundred.
Published by
The Co-operative League
Publishing Office, Willimantic, Conn. Al
bert Sonniehsen, Managing Eitor.
(CHFOTON
A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in vol
untary association, produce and distribute for their own use the things they need
Published monthly by The Co-operative League, 167 West Twelfth Street, New York City,
J. P. Warbasse, Editor. Price, ?1.00 a year. Entered as second class matter, December 19,
1917, at the Post Office at New York, N. Y., under (the Act of March 3, 1879.
Vol. VIII, No. 8 AUGUST, 1922 10 Cents
EFFICIENCY, NOT CLASS
A circular issued by the Commu
nist Party of America to the railroad
workers urges a general strike. The
idea is that the workers shall throw
off their chains and take possession
of business and run it for the work
ers. The idealism expressed by com
munists, syndicalists and others who
would suddenly change the economic
system is admirable. Their agitation
is most useful. Their protests against
the rottenness of present conditions
are of incalculable value. But they
neglect one fundamental fact. Things
are most apt to be done, not by the
people whom they want to do them,
but by the people who know how.
Most probably when the present
disorganized world recovers from its
insanity and settles down to business,
the people who will be found running
things will not be from any particular
class. They will not be the capitalists,
as now, nor the communists, as
dreamed of. They will be the efficient.
The people who know how to do
things best will be the ones doing the
jobs. And these efficient people will
come from all classes.
When the capitalists start an in
dustry they appoint at the head a
manager who runs the job in the
interest of the stockholders, who is
able to make profits out of the people
who work and the people who con
VITAL ISSUES
sume. That is the test. The com
munists and similar political reform
ers would ask of the manager first
that he be loyal to his class or party.
That is the test. Neither of these
represent the substantial principle.
Not class, but efficiency, should be
the test. Does he understand the
industry, has he the ability to pro
duce in the interest of all the con
sumers and the workers? This must
be the question.
We are learning this lesson every
day. The co-operative societies that
are succeeding show at least one pe
culiarity: They have efficient manage
ment. The development of efficient
managers is the keystone of success.
In this, Co-operation differs from all
other movements that are striving
for a better world. It does not stop
with theorizing; it learns how to do
the business that the capitalist is do
ing. And it has to have efficient ex
ecutives and do the business better
than the capitalist, or it can not suc
ceed.
The virtue of the Co-operative
Movement is that it is not a class or
party movement. Its success depends
upon capacity to serve the people in
each specific job.
As the consumers are everybody,
efficiency in their interest rests upon
a democratic foundation.

128 CO-OPERATION CO-OPERATION 129
TRADE UNIONS BURN MONEY
There is a serious matter for the
trade unionists to think about. Every
one of the big and pretentious hum
bugs in the field of co-operative
quackery in the United States that
has taken the money of the working
people during the past two years has
had the backing of labor leaders.
With the credentials which trade
unionism has given to their "organ
izers" these "organizers" have gone
out over the country and taken mil
lions of dollars from men and women
who could illy afford to lose it.
Fortunately, in the working ranks
of labor are men in every state in
the Union who can and do give labor
sound advice.
But there have also been leaders
who insisted on doing the wrong
thing. It would have been infinitely
better had the leaders advised the
workers to put their money in a pile,
pour kerosene on it, and burn it up.
That method would have the merit at
least that it would not damage the Co
operative Movement and it would be
lost no quicker.
Trade unionism is guilty of inex
cusable looseness in its relation to
this whole matter. Not only is there
looseness of thinking, but of action
also. And it will continue until the
right remedy is applied. Every union
should have a committee on Co-opera
tion. The job of that committee
should be first to educate itself so
that it knows what Co-operation is,
what it looks like. They should learn
how to know it when they see it. Af
ter they have found out about the
facts, the history and accomplish
ments of Co-operation, then they
should find out how it works. They
should get information on the right
ways and the wrong ways of organ
izing and running co-operative enter
prises. They should learn about the
fads, fancies and frauds. Presently
they should become experts and every
co-operative proposition that comes
within the field of that union should
have to be analyzed in the laboratory
of the committee on Co-operation.
THE LLANO COLONY
We publish in this number a short
article on the Llano Colony, of Lees-
ville (or New Llano), Louisiana. This
article is important because it is writ
ten by a man who has invested most
of his savings in the colony.
It is also important because cer
tain labor leaders and their publi
cations are endorsing this enter
prise.
For several years we have been col
lecting information on this colony.
Members of The League have visited
it and sent in their reports. We have
much information from members of
the colony. This article which we
are publishing is the mildest and least
condemnatory in our possession. Most
reports are very bitter.
Readers must realize that the peo
ple who have put their money into
this enterprise naturally want it to
succeed. They want to protect their
investment. Notwithstanding this
fact, a surprising number of people
have been willing to make a frank
statement to The League concerning
the colony in order, as they say, to
prevent others from being taken in
as they have been.
The Llano Colony in Louisiana is
neither co-operative nor democratic,
and it misrepresents in pretending
that it is. People who put in their
money are given the privilege of go
ing there and working hard for a poor
living. The investment is a very ex
pensive one. Reports show that the
management is autocratic, domineer
ing and unjust. The literature and
statements are highly exaggerated.
Well-meaning people are deluded
by a notion that such a colony can
become the beginning of a co-opera
tive commonwealth. There is not the
ghost of a chance of success. Such
an experiment, if it does not ulti
mately fail, can only become a capi
talistic business. A hundred years
of experimenting with these colonies
in the United States has never devel
oped a single co-operative success.
They attempt to set aside the sim
ple principles of social economics.
Whether we like it or not, these prin
ciples can not be defied; they are in
exorable.
The people in such a colony either
produce more or less than they con
sume. If they produce less than they
consume they will fail financially. If
they produce more than they consume
they will sell their surplus product
to the world of consumers for profit.
The more profit they can make by
exploitation of the consurrers, the
greater is their success. But such
success is capitalistic success. If they
once get a taste of it, the inevitable
result is that they make their group
restricted and circumscribed. The
fewer actual members, the greater
the profit.
The ideal situation, in which the
colonists produce all they use and
need and no more, is impossible in
the present capitalistic society. To
reach that point they have to pass
through the gateway of capitalist
success, and that gate leads to their
co-operative destruction.
A co-operative commonwealth com
ing out of such a thing is impossible.
Such enterprises rest either upon
the dreams of uninformed visionaries
or the machinations of fraudulent ex
ploiters.
This New Llano Colony is giving a
kind of education. The workers are
purchasing this simple information at
$1,000 per person. We think that is
a very high price. But if that is the
only way they are willing to get it,
then perhaps that is the necessary
way.
The colony will continue to live so
long as people keep on putting in
their $1,000 apiece. When this in
flow of money stops then the bubble
will burst. We only beg the victims
not to exclaim: "Another co-operative
failure!" We hope that the lesson
they have bought and paid for will
be truly educational.
The important thing to make clear
is that such schemes as this colony
are not a part of the Co-operative
Movement, nor are they in any sense
a contribution toward the solution of
the great social question.
STRAIGHT FROM GENOA
In the May number of this maga
zine we said that the Genoa Confer
ence was a meeting called by an ag
gregation of tottering governments
to try to keep alive a collapsing eco
nomic system, and that nothing con
structive could come out of it. We
were right. Here is a sample of its
work:
The Central Committee of the In
ternational Co-operative Alliance was
meeting at the same time at Milan.
It was doing constructive things. To
give the Genoa Conference something
really worth while to consider, the
Central Committee sent it the follow
ing resolution:
"In order to facilitate exchange of com
modities between nations; especially in the
case of foodstuffs, and in order to develop
the spirit of solidarity and mutual aid, it is
recommended that the services of the co
operative organizations should be utilized."
Here is a proposal of merit. It is
practical. It would work. And these
are the three reasons why the gentle
men of Genoa acted as they did upon
this resolution.
According to the "International
Labor Bulletin" (Genoa):
"Various criticisms of this text were ad
vanced. Sir Phillip Uloyd Graeme, the
British representative, stated that he con
sidered this article particularly unfortunate
and likely to sow discord between the vari
ous organized classes. He thought that co
operation did not need special encourage
ment and that such encouragement might
be dangerous. The article was rejected by
six votes to four."
So Sir Phillip and the other higher
intellects of the Genoa Conference
think that Co-operation is apt to sow
discord between the various classes!
They think that encouraging Co
operation is dangerous! These are
the "best minds," that are now in
control of the affairs of the world.
These are the sort of minds that
hurled twenty million people at one
another's throats and for four years
watered the soil of Europe with bloodi
and manured it with corpses.

130 CO-OPEKATION CO-OPEKATION 131
The only organized class, among
whom Co-operation will sow discord,
is that class that makes profits by
the exploitation of the people and
whose profit making is the greatest
cause of the world's discords today,
and humanity's greatest burden.
As to the encouragement of Co
operation being dangerous, it is. It
is dangerous to those interests that
have to have conferences at Ver
sailles, Washington, Genoa and The
Hague. It is so dangerous that the
type of diplomats and politicians who
sit at these conferences will lose their
jobs and their power when the people
have learned a little better how to
protect themselves by Co-operation.
When Co-operation comes in, war,
strife and diplomats go out.
THE FEDERAL RESERVE BANK
In the June number of this maga
zine, in an article on The Federal Ke-
serve Bank, we implied that the large
profits of these banks went to the
investors rather than to the patrons.
This is not correct. Neither of these
gets the huge profits. All profits above
6 per cent theoretically go to the
U. S. government.
In order to get accurate informa
tion on this subject we wrote to a
banker, formerly connected with the
system, who knows. He replied: "As
a matter of fact I think the United
States Treasury has not received any
of the profits so far. The directors
have been too busy squandering this
money, in a sense, in extravagant
buildings and, in some cases, extrava
gant salaries, all, of course, permitted
by the Federal Reserve Board."
If the U. S. Treasury does not get
the 97 to 215 per cent profits, some
body does. It goes somewhere. It is
too good to be at large alone.
WHAT WE OWE THE POOR
It is related that at the annual ban
quet of the Arizona Bankers' Associa
tion, after everybody had eaten all
that he could, and all of the speeches
had been made and toasts offered,
there was a general lull in the proceed
ings and an especially sleek and pious-
looking banqueter arose and spoke as
follows:
"Mr. Chairman, we have enjoyed
a lovely repast and our minds have
been carried among higher things on
this occasion. We have been made
aware of the blessings and fortunes
which a kind Providence has visited
upon us. It seems to me that it would
be fitting on this occasion to give
some thought to those unfortunates
whom fate has provided we must
always have with us. I ask: Can we
not do something for the poor?"
A death-like silence fell upon the
scene. Then arose the man of action.
"I move, Mr. Chairman, that we give
the poor," he said, "three cheers!"
This was carried with a will, and the
banquet closed.
And why not give three cheers for
the poor? Society owes them much.
Had it not been for the poor men of
Kochdale we should have waited till
some other place developed enough
poverty to create a hunger to find a
way out. Will it ever be the rich who
will want to change the present sys
tem and demand something better?
No; they are satisfied.
Every bad economic system creates
an antitoxin of its own. Poverty, in
the presence of riches, creates discon
tent, and discontent is the natural
remedy that cures the social disease.
When the masses of people become
poor enough, and can see their pov
erty contrasted with the wealth of
the few, they will find a way out.
When the gaunt form of poverty has
visited yet a few more millions of our
people; when the dividends fail to
come in and those who now live with
out work join the ranks of the poor;
when the cry of the hungry sweeps
across the land like the hot breath
of the sorocco—then the people will
find a way to live in peace and justice.
Through the gates of poverty the
world will march to freedom.
SEEN HERE AND THERE
By J. P. W.
We are not threatened with any
societies in the United States that are
too big—yet. Some day we may be.
So we had better be thinking about it.
In Europe they are a serious problem.
My attention was drawn to this mat
ter by Kobert Stewart of the Scottish
Wholesale. When he joined the Kin-
ning Park Society in Glasgow, he
said, it had 8,000 members. About
400 members used to attend the mem
bers' meetings. They were alert and
interested. Now the Kinning Park
Society has 30,000, and the members'
meetings are attended by 100 or 200
people. In a big, successful society
the members get used to seeing
things go along smoothly in the hands
of the efficient directors.
I remember my surprise in finding
that the Koyal Arsenal Society at
Woolwich, London, had a preserve
and jam factory of its own. It got
fruit from its own farms. "We can
make jam cheaper than we can buy it
from the C. W. S.," they said. The
Woolwich Society has 100,000 mem
bers. Its stores extend over an area
more than fifteen miles wide.
The result is that these big socie
ties go into production and leave the
little societies to support the Whole
sale. The existence of the Wholesale
depends upon the support of the mem
ber societies. The Wholesale helps
the societies while they are small, and
it seems wrong that these societies
should compete with it when it has
helped them to a position of strength.
The Woolwich Society has salaried,
full-time directors. They have gotten
the busines of running their stores
down to a system. There is not much
left for the members to do. The busi
ness runs along like that of a great
corporation. Many of these people
remember the time when they used
to have their meetings in William
Rose's house, when they had one
store and were struggling with many
DANGERS OF THE BIG SOCIETY
problems. Now the problems go into
the mill and are solved by machinery.
Something must be done to keep
the members acquainted and working
and thinking together. I like the way
the Berlin society is doing it. This
society has 125,000 members and 150
stores. Each member belongs to a
certain district which has a store, and
each store district holds its own meet
ings. Thus there are virtually 150
societies of about 800 members each.
Each has local autonomy. The store
districts are united into groups made
up of from seven to ten store districts.
These hold monthly meetings begin
ning at 7 or 7:30 p. m. Then there
is the central meeting of the dele
gates from all of the districts. At
the members' meetings of the store
districts neighbors meet neighbors,
and they really exercise a control over
the affairs of this big society. This
gets the people back to the old "town
hall meeting" idea.
We must get this idea clearly in
mind. The efficiency of profit busi
ness rests upon centralized admin
istration and centralized control.
The real essence of efficiency is in
the former. Democracy demands not
administration but control by the
people. And that is the unique con
tribution of Co-operation to indus
try.
Large societies will do well to make
every effort to preserve the neighbor-
liness that exists in the small society.
This is possible only by keeping it
divided into neighborhood groups.
Decentralized interest and control
and centralized administration should
be the aim. As to conflict with the
co-operative wholesale, that should
never occur. The work of the whole
sale and its constituent societies
should be organized so that each has
its functions and confines itself to its
own job.

132
CO-OPERATION
LLANO COLONY EXPOSED
By A RECENT COLONIST
The Llano Colony is run at pres
ent by a few fanatics who got con
trol of it almost since it was estab
lished here some four and one-half
years ago. They moved here from
California because of failure. There
were too many air castles. Here we
have the same trouble: a few ex
tremists who only consider the psy
chological side of a question and
give no thought to the materialistic
side of the same question.
Their papers are published for
consumption and the truth is very
much exaggerated. The only rea
son they are published is to have an
income from installment member
ships from Which the colony is sup
ported. The colony is far from self-
supporting. They really do not
want to be; they feel that the out
side world should support us, to
build the first city in the future co
operative commonwealth. And they
have been collecting thousands and
thousands of dollars, and have been
wasting millions of working hours of
the members who, coming here after
large expense, cannot readily go
away, but must submit to their bu
reaucratic control and dictatorship.
As to democratic control, there is no
sign of it. Nor is the manager re
quired to make any report! I do
not believe there is another place
where a man has more freedom and
power to spend other people's
money without any accounting to
the members than here. And the
manager who has this power, Mr.
Pickett, is the person who advo
cates more than anybody else that
members should abolish all suspi
cions !
About the ownership. The colony
is incorporated as the Llano Del Rio
Co. of Nevada. The manager has
full power to transfer, sell, bargain,
buy, mortgage, etc., any piece of
land the colony owns. The mem
bers don't know and have no right
to say anything in any transaction
that is going on. The old-timers are
most of them on the board of di
rectors, and have their invested
money secured by land titles and
mortgage deeds. One outstanding
fact is that the former manager, I
know, just before he left here,
deeded to himself a tract of timber-
land which was bought at that time
from a new member's money.
This matter came up about two
months ago at a meeting where Mrs.
Thurnage's ousting was discussed,
and the present manager gave the
flimsiest reason for the transfer of
that particular piece of land to
the manager's name. He has it yet.
Criticism is absolutely not al
lowed. Unless a man falls in line
everything he says is branded "de
structive."
I consider the colony not as a co
operative, but a communist experi
ment under the pretense of being a
co-operative. By the very nature of
it, it becomes a rule of bureaucrats,
whose undemocratic rule becomes
repulsive to every man who has re
spect for personal liberty, who
wants to have rights and say in an
enterprise where his labor power is
expended. For this reason, there
are many more people who have left
the colony after a short stay than
those who stay here. Among those
who stay are many who would go
away if they had the money to do so.
The colony life here is a comfort to
old men, of whom there are quite a
few, as they are relieved of eco
nomic worries as long as the colony
is in existence. They are working
eig*ht hours as best they can, and are
taken care of. Their needs are very
primitively satisfied. The member
ship fee which they pay is $1,000;
of course they are harmless to the
management.
Unless a person is an absolute com
munist and knows what it means to
slave for that ideal without any
question, under very adverse condi
tions as long as he lives, and under
centralized autocratic dictatorship,
he doesn't belong here. He cannot
find here free Co-operation.
To the credit of the colonists, I
must say that many are very earnest
in their experiment and belief in
the future communist co-operative
commonwealth, and many of the
people here are working very hard.
That is the only thing I can say for
them just now. Should they be able
CO-OPERATION 133
to get in production engineers, they
might probably grow; but the in
herent defects still will be here.
I believe they are committing an
injustice to the Co-operative Move
ment by collecting money under
that name. If they would collect it
as a communist experiment, well
and good — contributors would be
prepared to lose it. As it is, it
causes very much dissatisfaction.
MAYNARD, A TOWN IN NEW ENGLAND
The story of Co-operation in May-
nard, Mass., has been written many
times, and does not need re-writing.
But occasionally a correspondent or
a visitor inquires of The Co-opera
tive League as to whether the Fin
nish people of the Bay State are con
tinuing their fine work. The League
returns an emphatic affirmative to
such questioners. A few figures
from one of these co-operative towns
give added emphasis to our asser
tion.
Maynard has a population of only
7,000; yet it supports four co-opera
tive societies (too many, of course,
but let that point drop for the pres
ent). The International Co-opera
tive Association, made up of Polish,
Russian and Lithuanian, has about
100 members and does a grocery
and bakery business of $1,000 a
week. The First National Co-opera
tive Association, of about the same
number of members, handles gro
ceries, meats, milk, general mer
chandise, and runs its own bakery.
Each week it does nearly $2,000 of
business. The Riverside Co-opera
tive Society, now 44 years old and
planning to observe its 50th jubilee
before the decade is out, handles
groceries, meats, hardware, dry
goods, candies, etc., for the English-
speaking population; at present it
turns over $1,000 a week. The
United Co-operative Society (Fin
nish) has nearly 500 members, does
a business of $4,000 a week, and in
addition to groceries, meats, general
By C. L.
merchandise, etc., also sells furni
ture, operates a large bakery, res
taurant and milk business.
So we find in the little town of
Maynard four grocery stores, three
bakeries, two butcher shops, a flour
ishing restaurant, and the sale of
hardware, furniture and dry goods,
all under co-operative auspices. Co
operation here employs fifty men
and women to handle an annual
business of almost $400,000. Three
of the societies own their own spa
cious quarters, and one owns consid
erable land which it is not yet using,
two tenement houses, and other
property.
A glance at one or two of these
co-operative activities is interesting.
In the restaurant 150 people eat reg
ularly, paying $6 a week for such
good, substantial meals as are writ
ten about by novelists or described
by food experts, but which are never
found in any commercial restaurant
or hotel. The United Society had a
surplus of $1,400 in the last four
months, from the operation of this
restaurant. The manager of such
an institution run under private con
trol would expect to lose twice that
amount on such meals at such a
price.
The same society delivers 1,000
quarts of milk each day, at 9 cents
a quart. They pay the farmers 7
cents, and the 2 cents difference
pays for bottling and delivery. They
do not save any money for the so
ciety on this department of the busi-

134
ness, but they save a great deal for
the residents of Maynard; every
other milk dealer in town has had
to come down to 10 cents. In fact,
the Dairymen's Association in that
district a year ago tried to put the
co-operative milk dealers out of
business by bringing in their own
milk and selling it below 9 cents,
but they retired within a few weeks
with a deficit of $4,000 and a
healthy respect for the efficient
methods of the Co-operators they
were fighting.
A couple of blocks away are the
large buildings of the Riverside Co
operative Association. Many of the
men who organized this society in
1878 are now dead and their chil
dren are carrying on the work.
These Co-operators may not be do
ing such a large and successful busi
ness as their younger Finnish
friends, but they are the people who
link us up directly with the days of
actual pioneering in America. And
CO-OPERATION
the 6 per cent savings-returns to
members at the end of 1921 is an
indication of robust health such as
very many of our younger societies
might well envy.
There should be' more Co-opera
tion between all these Co-operators;
that goes without saying. There is
no room for two milk companies and
three bakeries in such a small com
munity. Nevertheless, such centers
as Maynard, Fitchburg and one or
two other places in Massachusetts
are deserving of more attention from
Co-operators outside New England.
There should be more pilgrimages
eastward. No footweary travelers
to the famous shrines of bygone cen
turies ever found greater inspira
tion than is available at the present
day to the co-operatiye enthusiasts
who care to take a dip into one of
these pools to renew once more their
faith in the possibilities of the Con
sumers' Co-operative Movement.
THE CO-OPERATIVE LAUNDRY OF LYNN
Co-operative soapsuds, ironing
boards and clotheslines have not
been developed in this country as
they should be. But we have our
pioneers, and successful laundries
are being operated in eight or ten
cities and towns of the United
States.
Lynn, Massachusetts, is one of
these cities. Last August, after
months of organizing and educating,
the little group of pioneers rented a
basement, installed some machinery,
and sent out a wagon after business.
The customary mistakes were made.
The members insisted on going into
business with only $3,300, whereas
they should have had at least
$5,000. They did not have time to
do all the educational work neces
sary, and as a result they have been
getting the greater part of their ed
ucation since August, and at the ex
pense of more than $2,000 of the
shareholders' money. The price of
shares was too low ($5). Some of
the labor unions invested in the en
terprise on the understanding that
the unions as such were to have
complete control of the activities of
the association; and when they
found otherwise, a few of the less
intelligent labor men stirred up
trouble.
But these mistakes have occurred
before to other societies. The lead
ers of the laundry swallowed the
bitter doses and continued the work.
When all the local dealers in laun
dry machinery refused to sell them
the necessary equipment, they went
out and hunted until they found
some second-hand machinery that
the Laundrymen's Association knew
nothing about. When the local
agencies for laundry supplies, soaps,
chemicals, etc., refused to sell to
them, they combed the city of Bos
ton until they found one little con
cern that would take their good
money. When the shoemaker whom
they put in as manager proved to be
a doubtful investment as manager
of a laundry, they got rid of him
and installed a skilled man from the
Laundry Workers' Union, who cut
down most of the excess overhead
expenses. And when, during the
first month of operation, the em
ployees had a disagreement with the
shoemaker manager and all went
out on strike, the directors held
emergency meetings, met with the
employes, and finally, after the loss
of two or three days out of the
busiest part of the week, effected an
agreement satisfactory to everyone.
From August until well along into
January, the Citizens' Co-operative
Union Laundry lost money. Since
that time they have been doing a
little better than break even. De
livery expenses will be cut still lower;
and the directors are trying their
best to cut down on costs of rentals
and power and live steam. Six
Poland was'hers and two extractors
are in operation. The work is almost
entirely wet-wash and rough-dry,
with a very little finished work. Two
wagons and a truck are busy the
larger part of the week; twelve peo
ple are on the pay roll.
These Co-operators in Lynn are
under special disadvantages, due to
the fact that the strike of the laun
dry workers of the city last year was
defeated, and at the present time all
the laundries are open shop except
the co-operative laundry, which
not only observes union conditions
I never saw a sadder thing,
Beneath God's vaulted blue,
Than that grim line of starving men
Who had no task to do.
They came before the frozen stars
Had faded from the sky,
And all day long the wealthy folks
Rolled curiously by.
They did not ask for lordly things,
For temples or for lands,
They only asked for right to use
The glory of their hands.
CO-OPERATION 135
THE UNEMPLOYED
inside the plant, but has members of
the Teamsters' Union for delivery
work. Their competitors all get
along with a much smaller labor
cost. And to make the situation
still harder, the organized labor
movement in the city fails to appre
ciate as it should this service being
rendered by the co-operative laun
dry, and the majority of the union
workers patronize private laundries
because they are fooled by clever
advertisements and cleverer solicit
ors into believing that these profit-
making laundries are cheaper!
Excellent administrative and edu
cational work is being done by J. G.
Campbell, Mrs. Agnes Andrews and
a few other far-sighted and untiring
Co-operators. Without them the
laundry would have died in earliest
infancy, to the delight of all the
other laundry owners in town. Last
spring a meeting was held under the
joint auspices of the Citizens' Co
operative Union Laundry and the
Workingmen's Co-operative Bakery
(Jewish) at which a secretary of
The Co-operative League spoke.
Other educational meetings have
been held at intervals of about a
month, and in the future more of
these joint meetings of the bakery
members and the laundry members
promise additional strength to both
societies and the rapid spread of co
operative understanding throughout
the city of Lynn.
And all day long the waiting line
Stood shaking in the street,
And, oh, their willing, idle hands,
And, oh, their aching feet I
I never saw a sadder thing
In all the city's strife,
Than that worn host of ragged men
Who waited there for life.
They did not ask for alms of gold,
Nor things of lordly worth;
They only asked the right to share
The labor of the earth.
DANA BURNETT.

136 CO-OPERATION
FROM THE LEAGUE HEADQUARTERS
THE THIRD CO-OPERATIVE CON
GRESS
The arrangements for the Third
Co-operative Congress, to be held in
Chicago in October, the call to which
was published in the June number
of this magazine, are progressing. The
Board of Directors of The League,
through the Executive Board, have
appointed certain committees to deal
with special subjects. There are
about twenty-five of these subjects,
and twenty-five committees to handle
them. The members of each commit
tee are the people believed to be most
competent to deal with the subject.
The chairman will collect information
and formulate a report. A copy of
this will be sent to each member of
the committee for his criticism,
amendments and additions. The re
ports will then be sent back to the
chairmen of the committees, who will
put them into shape for presentation
to the Congress.
This plan provides that the matter
that will come before the Congress
will have been carefully collected, will
be properly digested, and represent
deliberate thought. The Co-operative
Movement in the United States is be
ing promoted by thoughtful study, by
work and by education. It can not
be done by talk.
The local committee of arrange
ments will shortly have selected the
meeting place of the Congress. It
will be announced in due time.
ADVICE TO STORE MANAGERS
Leakage
The manager should watch con
stantly for leaks. Little leaks re
duce profit and are dangerous be
cause they are not easily noticed.
A few are suggested:
1. Throwing away waste paper,
bottles, barrels and boxes. They
should be sold.
2. Forgetting to save old price
tags, twine, bags and paper.
3. Overweight (which is as bad
as underweight).
4. Failure to keep account of goods
sold on credit.
5. Forgetting to charge goods sold
on credit.
6. Wrong pricing.
7. Over-buying, which causes
dead stock to accumulate.
8. Carelessness in figuring stock
needed.
9. Careless arrangement of stock.
10. Use of stock by employees, or
loaned outside.
11. Bad advertising.
12. Failure to take cash dis
counts.
13. Depreciation of fixtures
through carelessness.
14. Lack of store system causing
unnecessary steps.
15. Waste in lights.
16. Waste in window dressing,
and leaving awning down at night.
17. Waste in time.
18. Using a No. 2 bag when a
No. 1 or wrapping paper will do.
19. Carrying too much bulk ce
real in which worms develop.
20. Carelessness in emptying
bags of coffee, rice, etc. See that
nothing is left in the bag.
21. Leaving stock on the floor
where dampness and dirt spoil it.
22. Allowing moist goods to be
come dry and leaving covers open.
23. Keeping clerks on who are
not efficient or who create a bad at
mosphere in the store, which af
fects the rest, and lessens efficiency.
Do not be penny wise and pound
foolish, however. Too many man
agers who are paying wages to
clerks they do not need, are worry
ing themselves to death over the
waste of twine, paper, etc.
Finance, Accounting, Auditing
If the manager makes out checks
they should be countersigned. All
c'hecks should be made out in ink.
Insist on the directors installing a
good bookkeeping system, and a
stock control, which is your safe-
guard. The manager should know
(1) his percentage expense; (2)
gross surplus-saving ("profit"); (3)
net surplus-saving (earnings); (4)
what principal lines produce sur
plus-saving (profits). Surplus-sav
ing cannot be figured until every
expense has been paid. The per
centage figures must be figured on
the selling price. The expense per
centage is found by multiplying the
total expense by 100 and dividing by
the gross receipts. There should be a
difference between the expense and
gross surplus-saving per cent of at
least 10 per cent. To find the net
surplus-saving, subtract the total ex
pense from the gross surplus-sav
ings. If the inventory shows an in
crease over the previous year's
stock, add this to the gross and net
surplus-saving. If a decrease, sub
tract. This gives you, the year's
business. Do not estimate anything.
You must know that every figure is
correct.
If the society owns the building,
you should charge the business
whatever rent you would have to
pay for it.
To find out what you are saving
on any particular article, subtract
the expense per cent of that selling
price from the selling price, and the
net cost from the remainder.
When the expense for the year
has been determined in percentage
it should be the basis for future
marking of goods. In trying to raise
the percentage of "mark-up" it is
wise to go over the lines upon which
there is least competition and mark
up what you safely can to allow for
the many items upon which little
saving can be made.
In trying to reduce expenses,
watch the delivery and see if its ex
pense is out of proportion; perhaps
you can get along without delivery.
Cut down on lights and advertising.
Watch your overhead expense con
stantly, and reduce it to the safety
point. For percentage of overhead
costs see "How to Start and Run a
Co-operative Store."
CO-OPERATION 137
JEWISH SOCIETIES AFFILIATE
WITH THE LEAGUE
At a special convention held in
Paterson, N. J., June llth, the Jewish
Co-operative Federation voted to af
filiate with The Co-operative League.
For the past few years, the necessary
educational work of the Jewish co
operative societies had been per
formed by the Jewish Co-operative
Federation, which comprised about
thirty societies. These societies for
the most part conduct bakeries and
butcher shops in the eastern states.
The following resolution was passed:
The special convention resolves that the
Jewish co-operatives be affiliated with The
Co-operative League, and be under its juris
diction. Taking in consideration the fact
that the Jewish co-operatives have certain
particular interests be it therefore resolved
to have a special Jewish department in
The League which should devote itself to
everything concerning the Jewish Co-opera
tive Movement. It should be named "The
Jewish Co-operative Federation—affiliated
with The Co-operative League."
The Jewish Federation appointed
an executive committee of nine mem
bers, who are to make recommenda
tions for the conduct of Jewish edu
cational work by The Co-operative
League. The executive committee,
with the approval of The League,
elected Aaron Stolinsky to act as
Jewish secretary. Mr. Stolinsky will
carry on special educational work for
Jewish co-operative societies, under
the supervision of The Co-operative
League.
All Jewish co-operative societies
are urged to participate in the activi
ties of their federation, which is now
a part of the national Co-operative
Movement.
STUDY COURSE
Trade unions, colleges and study
groups are advised to send for the
League's Syllabus of a Course of
Study on Co-operation. Now is the
time to build a foundation.

138 CO-OPERATION CO-OPERATION 139
CLEVELAND CO-OPERATIVE
DAIRY OPENED
On the morning of June 28th, eight
wagons of the City Co-operative
Dairy started out to deliver milk.
This marked the opening of the co
operative dairy which is the answer
of the consumers and workers of
Cleveland to the arrogant milk dealers
who locked out their employees last
fall. The dairy was organized with
the assistance of prominent Co-opera
tors and labor officials of Cleveland.
The Franklin Co-operative Creamery
Association of Minneapolis gave much
practical advice.
Twelve hundred consumers, fifteen
labor unions and three co-operative
societies subscribed about $30,000 to
the capital stock of the dairy. Months
were taken to organize the business
on a sound basis. The dairy is con
trolled by consumers, who are mostly
unionists. No member has more than
one vote. Dairy products will be sold
at current prices, and surplus-savings
will be rebated to consumers.
Though operations of the dairy be
gan during the last days of June, the
"Opening Day" was celebrated on
July 9th. Many members and sympa
thizers turned put to see the dairy
"with its working clothes on." An
entertainment committee showed vis
itors around, explaining the use of
the different machines. Milk was
served to visitors.
The sound technique of Co-opera
tion is followed consistently by this
new dairy co-operative. An educa
tional committee and a women's guild
have been appointed to develop the
co-operative spirit of the society.
PACIFIC CO-OPERATORS WIN
VICTORY
The Co-operators of San Diego, Cal.,
came off victorious in one' of the final
stages of their fight against the spu
rious Pacific Co-operative League and
Pacific Co-operative Stores, Inc.,
which went into bankruptcy some
NEWS AND COMMENT
months ago. A complete victory now
seems assured.
The San Diego Co-operators have
brought legal action for the control
of the three stores they had financed.
The case is being fought by the re
ceiver of the P. C. L., who contends
that the San Diego stores are the
property of the bankrupt company
and should be sold to satisfy the debts
of the creditors. The local Co-opera
tors have put up a plucky fight and
have so far won all the legal skir
mishes for possession of their prop
erty.
The' latest victory was the favorable
report of the Special Master in Chan
cery who recommended to the U. S.
Circuit Court that the three stores be
delivered up to the local Co-operators.
The report states that the P. C. L.
sold the three San Diego stores with
out the knowledge and consent of
their rightful owner, the San Diego
Co-operative Association, and recom
mends that the local co-operative as
sociation, which furnished the capital
for the stores, should have possession
of them. If the San Diego Co-opera
tors are' upheld in this decision, thou
sands of dollars contributed by the
workers, and three stores, will be
rescued from the P. C. L. and a prece
dent will be established whereby other
stores may be rescued from the Pa
cific League entanglements.
CO-OPERATIVE PICNIC AT
BLOOMINGTON
The Co-operators of Bloomington,
111., have demonstrated that they have
team-work in play as well as in busi
ness matters. They arranged a co
operative picnic for a Saturday after
noon in July that was the talk of the
town. Nearly 2,000 people attended.
Large delegations of Co-operators and
unionists came from nearby towns to
share in the fun. The picnic was held
in Miller Park, in Bloomington.
During the afternoon all sorts of
sports were indulged in. The girls
had a potato race and foot race, the
boys ran races, had a shoe and oxford
scramble, and the grown-up women
folks had a nail-driving contest. Not
to be outdone, the men staged a
clothes-hanging contest.
After the fun, a basket lunch was
served, and coffee, ice cream and lem
onade were shared. In addition to
the fun, the occasion was made a
profitable one, through speeches by
Mrs. Halas and Victor Olander.
RAILROAD BROTHERHOOD EN
DORSES CO-OPERATION
The Brotherhood of Locomotive
Firemen and Enginemen, at their
Twenty-ninth Convention, held re
cently, endorsed the' Consumers' Co
operative Movement. The Rochdale
plan was particularly commended by
the Convention, which instructed
John F. McNamee, the editor of the'
official journal of the Brotherhood,
to furnish detailed information and
copies of model by-laws to the mem
bers of the organization, which would
assist them in establishing co-opera
tive stores. Mr. McNamee, who is
the secretary of The League, was
praised for the valuable assistance he
had rendered the Co-operative Move
ment during the past year. It was
recommended that the Brotherhood's
State Legislative Boards "be instruct
ed to use every effort towards the
enactment of such legislation as will
further the co-operative cause and
prohibit the activities of impostors
and scheme promoters."
LEWISTON ASSOCIATION DOU
BLES ITS BUSINESS
The Lewiston Co-operative Associa
tion, of Lewiston, Idaho, is in a better
condition than ever before. The store
sells groceries, feed, paints, varnishes,
roofing material, hardware, clothing,
etc. Within a year the sales increased
from $3,500 a month to about $6,000
a month. The report for the past
year shows a net surplus-saving on
sales of almost 4 per cent. A 2 per
cent savings-return to members and
a 1 per cent return to non-members
were distributed.
The Lewiston! Co-operative made
the mistake early in its history of
affiliating with the Pacific Co-opera
tive League. They realized their
mistake in time to break off their con
nections before becoming involved in
the swindle of the P. C. L. The soci
ety, knowing the value' of educational
work, has organized a Women's
Guild. It issues a monthly bulletin to
the members. The Lewiston Co-op
erative Association is affiliated with
The Co-operative' League.
SEATTLE GRANGE WAREHOUSE
TAKES OVER FOOD PROD
UCTS ASSOCIATION
The Grange Warehouse, the co-oj>-
erative wholesale of Seattle, has tak
en over the Co-operative Food Prod
ucts Association. The' latter was
organized by the unions of Seattle
during the big strike five years ago.
It had a paid up capital of $50,000 and
was doing a business of half a million
dollars a year at one time. The de
pression incident to unemployment
and the' discouragement caused iby
the failure of the false co-operatives
which took much of the workers'
money during the past two years
prompted the Food Products to turn
over its business to the Grange.
CO-OPERATIVE PLAY GIVEN
The Cleveland District Co-opera
tive League recently gave a success
ful entertainment, in which a three-
act play, "The Spirit of Co-opera
tion," delighted the audience. About
350 Co-operators turned out to see
the play and hear the songs and talks
on Co-operation. Addresses were
delivered by Roy Shanks, John F.
McNamee, Albert Coyle, H. W. Bone
and O. J. Arness. Music and vaude
ville acts completed the program.
This successful entertainment of
the Cleveland District League should
inspire other groups to arrange such

140 CO-OPERATION CO-OPERATION 141
programs during the summer months
—preferably out of doors.
THE BRITISH CONGRESS
Brighton, England, during the first
week of June, was the scene of the
54th annual congress of the Co-opera
tive Union, the national educational
federation of British co-operative so
cieties. The sixteen hundred dele
gates present represented a member
ship of 4,526,475 Co-operators. Prec
edents were shattered by the appoint
ment for the first time of a woman
to preside over the congress. The
new President, Margaret Llewelyn
Davies, delivered a noteworthy in
augural address, emphasizing the
fundamental character of the Co
operative Movement.
"We are working for no patch
work modifications, for no 'reconcilia
tion of capital and labor,' for no 'in
fusion of a better spirit' into old in
dustrial forms," she said. "We are
laying the foundations of a new in
dustrial civilization. The rallying cry
for the whole labor world is the re
placement of capitalism by an indus
trial democracy producing for use. It
is such a non-capitalist society that
Co-operators are actually creating.
Our program transfers the power of
capitalism into the hands of the peo
ple organized democratically as con
sumers ; makes capital the servant of
labor; allows for a partnership with
the workers; abolishes profit, social
izes rent, and will ultimately get rid
of the present wages system. It
opens the great portals of interna
tional trade in such a way that all
nations may pass through it frater
nally together. It gives real power
to our political democracy by the cre
ation of an economic democracy."
The congress went on record in
favor of the establishment of an inde
pendent co-operative daily newspa
per, in order to combat the persistent
campaign of misrepresentation to
which co-operatives had been sub
jected during the past year. The po
litical policies of the Movement were
discussed, and demands were made
upon the government to cease dis
criminating against co-operative en
terprises. The establishment of a
co-operative college, the attitude of
co-operative societies towards their
employees, and other important is
sues were debated.
It was announced at the congress
that the Co-operators of Great Bri
tain had subscribed £74,190,375 to
the capital stock of their enterprises;
that the land and buildings owned by
their societies were valued at over
£28,000,000, while the goods on hand
in their establishments were worth
£25,000,000. The sales in these socie
ties in 1920 amounted to £219,000,-
000, on which a surplus-saving of
£18,000,000 was created for distribu
tion among the members in propor
tion to their purchases.
One of the most inspiring moments
in the congress was the international
meeting, which was addressed by
German,, French, Belgian, Swedish,
Finnish, Russian, Georgian and In
dian delegates. The foreign dele
gates reported on the condition of
their co-operative societies and
pledged themselves to work towards
the international solidarity of all co
operative societies.
$3,000,000 IN STRIKE AID
The Co-operative Union of England
has just issued a report on the assist
ance rendered by the co-operative so
cieties of Great Britain during the
coal strike last year. "Societies have
no cause to regret their action at the
time of the dispute," says the report.
"But for their assistance and gener
ous support, the sufferings of the
miners would have been greater, and
the value of the service rendered by
societies to the Miners' Unions will
not soon be forgotten by the organ
ized workers. The extent of this
service was indeed remarkable. To
gether, the amount of money loans
granted to miners' organizations and
of credit given to members of
the various miners' organizations
reached no less a sum than £605,719.
A large portion of this amount has
since been repaid to the societies, and
repayment of the remaining portion
is proceeding satisfactorily."
This sum does not include the out
right donations of meals and relief
work made by many co-operative so
cieties. One society provided a meal
daily for 350 children of the strikers
all during the strike. Many others
permitted the miners to use their
halls free of charge, and supplied
bread and other goods at cost price.
In addition, thousands of pounds were
contributed outright to the strike
funds by co-operative societies.
In this fashion, the workers by
uniting as consumers, were able to
secure substantial assistance from
the co-operative enterprises they had
built up themselves.
THE BRITISH EDUCATIONAL
UNION
The Co-operative Union, the edu
cational federation of British co
operative societies, now comprises
practically all co-operatives in the ter
ritory covered by the Union. At the
end of 1921 there were 1,334 societies
affiliated with the Union. There re
main only 163 societies outside the
Union. The subscriptions of affiliated
societies to the Union amounted to
$175,000 for the year. This money
was disbursed for educational work.
Congresses were held, courses ar
ranged, lecturers toured, and other
educational work performed. The
affiliated societies contributed $13,000
to the Russian Relief Fund and sub
stantial contributions were made for
the relief of the striking miners.
The Co-operative League in the
United States is organized along the
lines of the British Co-operative
Union. It is the only national fede
ration of the Movement in this coun
try. It aims to unite as large a pro
portion of the co-operatives as does
the British Union. Its opportunities
for service depend upon the support
of the local co-operatives.
THE GREAT RUSSIAN FAIR
The famous Nijni-Novgorod Fair
is opened on August 1, after being
closed for several years. It will be
held under the auspices of the Rus
sian government and the Russian
co-operatives, especially the Central
Union of Consumers' Societies ("Cen-
trosoyus").
The Nijni-Novgorad Fair is the
greatest in the world. It was orig
inally held in Kazan, the Tartar cap
ital, but was transferred in the six
teenth century to Makarieff, and
thence, in consequence of a fire, to
Nijni-Novgorod, on the Volga. This
is the center of an extensive system
of inland navigation which connects
it with all parts of Russia. At times
as many as 400,000 people have gath
ered for the forty days during the
fair.
The volume and variety of mer
chandise dealt in at the fair are very
great: Textiles, furs, skins, horse
and camel hair, precious stones,
metal gods, agricultural machinery,
tools, utensils of all kinds, Persian
carpets, etc.
The fair is the great meeting place
for interchange of commodities be
tween East and West. The co-oper
ative organizations, from the incep
tion of the Co-operative Movement,
have taken an active part in the fair.
In 1896 there was a conference of
delegates of co-operative organiza
tions at Nijni-Novgorod, and it was
at that conference that it was decided
to unite these organizations into the
Ail-Russian Central Union of Con
sumers' Societies "Centrospyus,"
which commenced its activities in
1898 with only 18 affiliated co-opera
tive societies, and it now embraces
practically the whole population of
Russia.
Before the war Centrosoyus ac
tively participated in the fair. It had
its own warehouses, office and hotel
for accommodating representatives
of consumers' and other types of co
operatives, and brought to the fair
all kinds of goods and raw materials
I

142 CO-OPERATION CO-OPERATION 143
of home production, as well as cer
tain produce from abroad.
No tariff, imposts or hindrances of
any kind are placed upon the import
of goods, nor on the export of pur
chases made at the fair.
CO-OPERATIVES FEED STARV
ING AUSTRIA
Thoughtful students of social con
ditions in Austria are agreed that the
Co-operative Movement is the only
sound organization now existing in
that sorely beset land. The Co-opera
tive Society in Vienna alone conducts
144 distributive stores, which supply
the wants of half the people of that
city. During the year 1920-1921, the
membership of the society rose from
140,541 to 152,513, while the turn
over increased tremendously, due not
only to the decline in the value of
the Austrian crown, but also to the
increase in business. The savings
bank deposits of the society increased
enormously. The society owns 172
houses, which are rented to members.
While the government and private
business in Austria are bankrupt,
morally and economically, the Co
operative Movement is every day
growing in power.
AUSTRALIAN MOVEMENT
GROWS
The first census of the1 co-opera
tives of Australia discloses the exist
ence of more than one hundred Roch
dale co-operatives, which have an ag
gregate annual turnover of 4,500,000
pounds. Nine of these societies do an
annual business in excess of 200,000
pounds. The Co-operative Society of
Adelaide, South Australia, has a mem
bership of 162,000. The total num
ber of Co-operators in Australia is in
excess of 200,000.
New South Wales has a co-opera
tive wholesale that had a turnover
last year of 425,000 pounds. The
capital of the wholesale amounts to
23,928 pounds.
Most of t h e co-operatives listed
have paid substantial savings-returns
to members.
FISHING IN UKRAINIA
From "Isvestia," we learn that the
Peoples Commissariat of Supplies has
granted a lease of the fishing rights
in the Black Sea to the All-Ukrainian
Central Co-operative Union. These
rights extend to the estuaries of all
Ukrainian rivers flowing into the
Black Sea and allow the opening of
fish-curing factories and of all enter
prises directly or indirectly connected
with the fishing industry. The All-
Ukrainian Central Co-operative Union
may sub-lease the fishing-rights, pre
ferably to Red Army men, and, with
the consent of the Commissariat of
Supplies in each case, at reduced
rents, when the original rent paid by
the Union will be reduced accord
ingly.
SCOTCH HELP RUSSIA
On April 17th the Scottish Co-oper
ative Wholesale Society (S. C. W. S.)
despatched via Riga £1,000 worth of
commodities, as agreed at the last
quarterly meeting. The consignment
included drapery goods to the value
of £275 and the following foodstuffs:
250 bags of flour; 166 bags haricot
beans; 115 bags rice; 22 cwts. of fat;
and 360 dozen quarter-pound tins of
cocoa.
The goods are being sent through
the Friends' Relief Committee.
THE INTERNATIONAL SPIRIT OF
I FELLOWSHIP
* To the Co-operative i^eague,
Dear Comrades:
For your cordial good wishes to our Co
operative Congress L* Eisenach, we wish
to thank you sincerely. We regret exceed-
in .rlv that it is not possible for you to par
ticipate in this occasion.
The German Consumers' Co-operative
Movement, because of the depreciation in
•the value of the currency, has at the pres
ent time great difficulties to overcome. We
hope, however, that with good fortune, we
will be in a position to accomplish all that
our high ideal demands of us. In the
knowledge that this ideal is the same as that
towards which the co-operatives of all lands
aspire, we clasp your hand in comrade
ship.
With comradely greetings,
Zentralverband deutscher Konsumvereine,
HBINRICH KAUFMANN.
WORD FROM THE FIELD OF ACTION
BACK TO EDUCATION
We have many, many problems in the Co-
opeative Movement, but every one which we
undertake to straighten out leads us back
to the same one general problem—the lack
of education. This cannot be emphasized too
strongly.
Seattle, Wash.
A. S. GOSS,
Manager, Associated
Grange Warehouse Co.
VILLA GROVE EXPANDING
I wish to congratulate the League on its
new home and commend CO-OPERATION
for its instructive and constructive articles.
Our society is gradually expanding, having
added the ice business this spring, and we
are now working on a large deal for another
line to add to the groeries, meats, coal and
ice. Villa Grave, 111.
GEORGE L. KENNEDY, President.
Villa Grove Co-operative Society.
ARE WE BREEDING BRASS MONKEYS?
I want to write you a few lines in ap
preciation of your good work. I am a sub
scriber to CO-OPERATION and several
foreign co-operative papers, but there is no
paper that I delight in reading as that of
CO-OPERATION. It is so plain and offers
such sensible advice, and I have often
thought that if Co-operators would only
take the advice of this little magazine, what
a great forward mo-e Co-operation would
make. But talking to them seems like talk
ing to a brass monkey.
Miami, Fla.
LAWRENCE A. YEATMAN.
SAN BERNARDINO TAKES OVER A
BANK
The 'big thing »n the Pacific Coast just
now is the co-operative banking proposition
started in San Bernardino, but soon coming
to Los Angeles.
The San Bernardino Movement is one of
the healthiest I have seen for a long time.
They have a fine store in the main street,
right in the business section, and two small
er ones. They are up-to-date in their me
thods and are run by intelligent and com
petent men who know their business and
who appear genuinely interested in the
movement. A steam laundry, the capital
for which was raised in union labor circles
in the midst of a laundry workers strike,
has been very successful. And finally the
co-operators of San Bernardino are taking
over control of a local bank, helped by the
Cleveland Engineers Bank and acting on the
advice of Dr. McCaleb.
It is hardly necessary to tell you that the
movement is a genuinely democratic work
ing-class one. San Bernardino is fortunate
from our standpoint in being the location of
big railroad shops, and having a fine class of
citizens.
Arrangements have now progressed so far
that it is practically certain that a big cam
paign will be started very soon in Los
Angeles in regard to the co-operative bank.
The San Bernardino bank capital will be
raised from $100,000 to $500,000; and of the
latter amount, it is expected that with the
aid of the Cleveland Engineers Bank, $300,-
000 will be the share of Los Angeles. Union
Labor has definitely endorsed the proposi
tion. The bank will be made a state-wide
one, under the California laws which permit
a bank to have branches; and I anticipate a
big development. It will be in Southern
California first, but propaganda is being'
pushed as far as San Francisco already.
Los Angeles, Cal. THOMAS H. BELL.
SAULT STE. MARIE ENLARGES
BUILDING
Our business is still growing, and of
course when business is increasing you are
compelled to enlarge your quarters. This
is the way with us at the present time. The
building that we bought three years ago is
now too small, so we are compelled to build
an addition.
Our bakery has surely made very fine
progress. Co-operative bread is at the pres
ent time sold in ninety per cent of the stores
of the Sault and Chippewa County. You
no doubt realize that it is a hard proposi
tion for us to induce independent stores to
sell bread with a very attractive co-opera
tive wrapper on every loaf. We first put
quality in it and then we asked our members
to talk co-operative bread to their friends
and in this way the independent stores be
gan to ask us to sell them our bread, and of
course we were glad to do so, for in the
bakery game volume is what counts.
We also had to install a new oven, as
the old one was too small. So you can see
that we are growing in at least the grocery
and bakery business.
Our meat market is also showing a nice
increase. At the present time it is doing
an average of $25,000 per month, which I
think is encouraging, considering condi
tions.
Saulte Ste. Marie, Mich.
LEO LE LIEVRE, Manager,
Soo Co-operative Mercantile Assn.

••!
144 CO-OPERATION CO-OPERATION
NEW BOOKS
"DR. WILLIAM KING AND THE CO-
OPERATOR"
This book, published by the Co-operative
Union, contains an opening chapter by
T. W. Mercer on the life and teaching of
Dr. King. Most of the volume is a republi-
cation of that rare periodical "The Co-opera
tor" which was published from 1828 to 1830
at Brighton by Dr. King. The twenty-eight
numbers are faithfully reproduced and thus
made accessible in the literature of Co
operation. The reader will at once realize
that Dr. William King was the father of
the British Co-operative Movement; he was
the first to give it a philosophy. The volume
is enriched by a number of letters written
by Dr. King to other early Co-operators.
"The Co-operator" was started by Dr.
King in 1828 to instruct the people in the
principles of Co-operation. He saw how
confused the people were on this subject.
His magazine not only explained the prin
ciples but he gave advice on the business of
conducting co-operative stores and other en
terprises. He was an educator and an ideal
ist. He emphasized the importance of co
operative education not only for members
but for their children. Still this pioneer
teacher was attacked and reviled by those
who misunderstood. In 1830 he discon
tinued the publication of "The Co-operator,"
but into its pages he had written the best
thought that had ever been given to the sub
ject.
If he had never written anything else, the
following sentence should be given a place
of distinction: "Co-operation is a voluntary
act, and all the power in the world can not
make it compulsory; nor is it desirable that
it should depend upon any power but its
own."
[ "KONSUM-GENOSSENSCHAFTEN"
This book, by Professor Robert Wilbrandt,
is a part of the series on "Gemeinschafts-
kultur" published in Stuttgart, 1922, by the
Moritz Press. It gives an idea of the phil
osophy and methods of Co-operation and
analyses its possibilities as a social agency.
Professor Wilbrandt looks upon Co-operation
as a Movement capable of playing a large
part in the reorganization of society upon
a just basis but he does not see in it a com
pleted social and economic system. It is en
couraging to find quotations from the
American magazine CO-OPERATION cited
to elucidate the philosophy which is grow
ing out of this great Movement.
NEW BRITISH UNION PAMPHLETS
"The Inaugural Address," by M. Llewelyn
Davies at the Fifty-Fourth British Congress,
is brought out by The Co-operative Union
in pamphlet form with an excellent picture
of Miss Davies. The only criticism of this
excellent address is of the tendency to
segregate the work of women from that of
men in the Co-operative Movement. It is
a fine document by a fine woman.
"Co-operation and the Social Conscience,"
by Norman Angell, is an address given at
the Brighton Congress. It deals with the
social conscience but not with Co-operation.
As such it is a thoughtful and suggestive
treatise, as is the case with all of the writ
ings of Mr. Angell. It is most useful in call
ing attention to the loose thinking, or the
lack of thinking, which characterizes the
minds of such as Mr. Harding's "leaders of
thought" in these days.
"Educational Policy," by A. V. Alexander,
shows how the war destroyed interest in edu
cation. While the British Movement was
cutting down on educational standards and
appropriations, it was blithely voting hun
dreds of millions of dollars for making war
on Russia. Yet, so long as the people- are
saddled by -a thing like the British Govern
ment, they must expect war and the sup
pression of education that goes with it; at
least when the money is needed to promote
the interests of profit business and privilege.
What is the government for, if not for that?
"Mutual Aid in Education," by S. Fair-
brother, is a thoughtful contribution to this
subject. This address reminds us that the
pionees in the Co-operative Movement did
not have much education. But they wanted
it and believed in it. The state did not
supply it. They did not ask the state to
do so. They organized education within the
Movement. The early societies not only
carried on co-operative education, but they
conducted classes in literature, science, his
tory and art. This educational work has
continued. It has great possibilities, for the
people in their voluntary societies, found
ed upon the principles of mutual aid, can
educate themselves better than the state
can.
"The Financial Position of the Co-opera
tive Movement in Relation to New Forms
of Administration in the Retail Trade," by
George Riddle, is another of the valuable
addresses at the Brighton Congress of the
Union. The business statistics of the Brit-
ih societies are give_n. These show that the
Movement is financially sound and growing.
The menaces to the Co-operative Movement
are the combines, trade associations and
price rings that foreshadow the coming con
solidations of profit business. To meet this,
Co-operation must have an unlimited supply
of capital, efficiency and attention to every
thing that makes for the well-being of its
members, and perfect co-operation among
all its organizations and units. Mr. Riddle
advises "a, capital redemption fund" in
every society, which should be a reserve
to obviate the necessity of borrowing mony,
which should save interest charges, make
lower prices possible, and guarantee the
stability of the society."
PUBLICATIONS
OF THE CO-OPERATIVE LEAGUE
HISTORICAL Per Copy Per 100
S. Story of Co-operation . ................................................f .10 $6.00
7. British Co-operative Movement ........................................ .10 6.00
10. A Baker and What He Baked (Belgian Movement)...................... .05
38. Co-operative Consumers' Movement in the United States............... .05 4.00
39. Consumers' Co-operative Societies in N. Y. State, (Published toy Con
sumers' League) .................................................. .10
TECHNICAL
4. How to Start and Run a Rochdale Co-operative Society.................. .10 4.00
6. System of Store Records and Accounts................................ .50
6. A Model Constitution and By-Laws for a Co-operative Society........... .05 2.50
8. Co-operative Education. Duties of Educational Committee Defined..... .10
9. How to Start a Co-operative Wholesale................................ .10
27. Why Co-operative Stores Fail ......................................... .02 1.00
2. Co-operative Store Management ...................................... .10
14. How to Start and Run a Women's Guild................................ .06
15. How to Organize a District Co-operative League ........................ .10
MISCELLANEOUS
16. Model Co-op State Law ............................................... .10
17. Syllabus for Course ~of Lectures, with References and Bibliography.... 35
46. Producers' Co-operative Industries ................................... .10
11. Control of Industry by the People Through the Co-operative Movement... .10
12. Credit Union and Co-operative Store.................................. .05 1.75
34. Co-operative Movement (Yiddish) .................................... .02 136
43. Co-operative Housing ................................................. .10
42. Co-op Homes for Europe's Homeless ................................. .10
ONE-PAGE LEAFLETS
(One cent each; 50 cents per 100; $2.50 cer 500; $4 per 1,000)
(1) Principles and Aims of The Co-operative League; (17) Do You Know why You Should Be a
Co-operator; (20) Why Loyalty Is Necessary; (21) Cost and Crime of Credit; (22) A Real
Co-operator; (25) Resolutions Adopted by A.F. of L.; (26) Factory Workers Co-operate!;
(28) Do You Know About Co-operation in Europe?; (40) Have You a Committee on Educa
tion and Recreation?; (44) What Is the Co-operative Movement?; (45) Schools and
Stores; (47) A Man's 'Right to a Jab; (48) Tips to Co-operators; (49) Think It Over.
MONTHLY PUBLICATIONS
CO-OPERATION—(In bundle lots, $7.50 per hundred). Subscription, per year......... .$1.00
HOME CO-OPERATOR, 4 pages ................................................ $1 per 100
INTERNATIONAL CO-OPERATIVE BULLETIN (Pub. by The I. C. A.).......per year, $1.60
BOOKS
The following books are recommended as containing the best discussions of the modern
Co-operative Movement. They may be ordered through The League:
Bubnoff, J. B.: The Co-operative Movement in Russia, 1917................ ...........$156
Faber, Harald: Co-operation in Danish Agriculture, 1918.............................. 2.75
Flanagan, J. A.: Wholesale Co-operation in Scotland, 1920............................ 2.00
Gebhard, Hannes: Co-operation in Finland, 1916...................................... 2.00
Gide, C.: Consumers' Co-operative Societies, 1921...................................... 2.50
Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, $2.00; paper
bound ........................................................................... .60
Howe, Fred C.: Denmark, a Co-operative Commonwealth, 1921......................... 2.00
Maxwell, Wm.: History of Co-operation in Scotland, 1910.............................. 2.00
Nicholson, Isa: Our Story ............................................................ 35
Powell, G. Harold: Co-operation in Agriculture. Macmillan ........................... 1.50
Redfern, Percy: The Story of the C. W. S............................................. 2.00
Redfern, Percy: The Consumers' Place in Society, 1920............................... 1.00
Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918...................... 1.50
Smith-Gordon: Co-operation in Many Lands, 1920..................................... 1.50
Sonnichsen, Albert: Consumers' Co-operation, 1919. Cloth bound, $1.75; paper bound... .75
Stolinsky, A.: The Co-operative Movement. In Yiddish................................ 1.00
Webb, B. and S.: The Consumers' Co-operative Movement, 1921........................ 5.09
Webb, Catherine: Industrial Co-operation, 1917 ...................................... 1.50
Woolf, Leonard: Co-operation and the Future of Industry ........................... 1.50
Woolf, L.: Socialism and Co-ioperation ............................................... 1.50
"The Co-operative Consumer" and "Co-operation," HI (1917), VI (1920), VII (1921).... 1.25
Transactions of Second American Co-operative Convention, 1920....................... 1.00
The People's Year Book, 1922...................................................... .75
(Ten cents postage should be added for books which cost more than $2.00, and five cents
for the smaller books.)

THE CO-OPERATIVE LEAGUE
(Member of The International Co-operative Alliance)
167 West 12th Street, New York
An educational organization for teaching the history, principles, methods and aims of toe
Co-operative Movement and for the promotion of Co-operation In the United States.
Join The League and thus help promote the educational work of the Co-operative
Movement. Individual Membership, $1.00 a year. Subscribe for CO-OPEKATION,
the Monthly Magazine of The League, and keep in touch with the Movement.
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Address.
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imd find $. $
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Wholesale Grocers and Jobbers,
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We supply goods to Co-operative Societies ONLY
We are owned and controlled by Co-operative
Societies.
We are organized to enable Co-operative Societies
to do collectively what they cannot do Indi
vidually.
Co-operative Central Exchange
Office*, Warehouses and Plant:
Winter Street and Ogden Ave.,
SUPERIOR, WIS.
Co-operators' Ltd. Mutual Fire Insurance Co.
Is now writing Insurance In state of Wisconsin.
The Canadian Co-operator
Brantford, Ontario,
Canada
The organ of the Canadian Co-opera
tive Movement, owned by and con
ducted under the auspice* of The
Co-operative Union of Canada.
Published monthly; 7Sc per annum
MOVING PICTURES
and
Stereopticon Lectures
may be rented from
THE CO-OPERATIVE LEAGUE
167 West 12th St., New York City
1. "Son.* Examples of English Co-operation."
Moving pictures of factory processes (two
reels) ................................35.00
2. "Co-operation in the United States."
With 63 Stereopticon views ............83.00
S. "The Co-operative Movement in Knsssla."
With 36 colored Stereopticon views. ...$3.00
fnr Subscription for CO-OPERATION, $1.00.
lor MembersWp in The LEAGUE>' $ 1.00.
Co-operation in Scotland
In no part of the world Is Co-operation further
developed, or more successfully practised than In
Scotland. If you wish to keep In touch, read
"The Scottish Co-operator"
(Published Weekly)
Subscription: Tear 12 ah.: half-year, 6 ah.
Address, 119 Paisley Road,
Glasgow, Scotland
THE PRODUCER
Issued Monthly Price 3d.
If you -want to keep in touch with
business, organization, administra
tive affairs, and problems of the
British Co-operative Movement,
read THE PRODUCER.
Publiahed hy
Co-operative Wholesale Society, Inc.
1 Balloon Street, Manchester.
Post free 4 sh. «d. a year.
The Trade and Technical Orean of British
Co-operation.
THE HOME CO-OPERATOR
A four-page magazine for
use in co-operative societies.
Issued monthly, in bundles, $1 per hundred.
Published by
The Co-operative League
Publishing Office, Willimantic, Conn. Al
bert Sonnichsen, Managing Eitor.
A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in vol
untary association, produce and distribute for their own use the things they need
Published monthly by The Co-operative League, 167 West Twelfth Street, New York City,
J. P. Warbasse, Editor. Price, $1.00 a year. Entered as second class matter, December 19,
1917, at the Post Office at New York, N. Y., under Abe Act of March 3, 1879.
Vol. VIII, No. 9. SEPTEMBER, 1922 10 Cents
HOW TO RUN COAL
The coal in the United States is not
mined for use; it is mined to make
profits. There is a superstition without
the slightest basis of fact, that coal
is mined to be burned. As a result,
the coal business is disorganized and
frightfully inefficient. Here is a public
need, and underlying the whole en
terprise, from the mine to the stove,
is the one question: How much can be
gotten out of the consumer? The
best statistics show that during the
four years of the war one billion dol
lars in profits were taken in this com
modity from the people in the United
States.
There are essentially four plans
by which the coal business can be
run.
The first is the present method for
profit. This method absolutely laughs
in our faces every time we call our
selves a civilized people.
The second method is by the po
litical plan. This is also called gov
ernment ownership and public owner
ship. It is offered in many forms.
The plan of the United Mine Workers
called "nationalization" gives the ma
jority control to the government,
which makes it a political plan. Gov
ernment ownership and control mean
politics. What the government owns
and controls the people do not own
and control. The people should not
VITAL ISSUES
be confused with the government;
they are two entirely different things.
The third plan is the control of the
mines by the workers. This is the
syndicalist, industrial unionist, or
profit-sharing producers' plan. It is
not a radical plan because it will not
work. And if it should work, it would
in the end turn out to be the same as
the present capitalistic scheme.
There are all sorts of combinations
of these four plans.
If one would really sit down and
think seriously about the matter he
would have to come to the conclusion,
that, if coal is to be mined and dis
tributed for use, it must be run by
the people who use it—the consum
ers. And the problem will not be solved
until the consumers do just this
thing.
The consumers, both commercial
and domestic, should form local con
sumers' associations. These should
be upon the simple Rochdale basis.
In cities, the organizations should be
by wards or districts, in the country
by counties. The local associations
should be federated into state asso
ciations, and the forty-eight state as
sociations should be federated into a
national organization.
The distribution of coal by the lo
cal associations should be begun by
making contracts with local distribut
ing agencies on a percentage of cost
basis. Thus the local coal dealer

146 CO-OPEEATION
would be employed to deliver coal.
If satisfactory arrangements of this
sort could not be made, capital would
be raised by the Rochdale method to
establish a coal yard of their own.
Coal would be distributed at the cur
rent retail price. Half of the sur
plus-savings could be returned in
cash to reduce the immediate cost to
the consumer and half could be re
turned in coal bonds. The funds re
presented by the coal bonds would
accumulate for the purpose of buy
ing mines.
The basis of this plan is that the
consumers would ultimately run the
coal industry. And they are the only
people who want coal run for use.
This plan would begin by taking the
retailers' profit. Then would come
the profit of the string of middle
men ; and finally the mine owner's pro
fit. This plan provides for erecting a
sluice-way which turns the golden
stream of profits from the pockets of
dealers, traders, gamblers, and mono
polists into the treasury of the con
sumers. When once started out
among the consumers, its natural
tendency is to work toward the own
ership of the mines as capital accum
ulates. There is no limit to its pos
sibilities. It is the practical and sen
sible way to run coal.
WORKERS UNITE AT THEIR PERIL
Judge Rogers of Philadelphia is
sued on August 1st an injunction
against the Amalgamated Clothing
Workers of America restraining them
from speaking to non-union strike
breakers. The judge stated in court
that he intended to break up the or
ganization because it creates strife
in factories where the employees are
contented. "It should be driven out
of all existence as a menace to the
nation," the New York Times, Au
gust 2nd, reports the judge exclaim
ing. One of the reactions following the
war is the movement to destroy trade
unions and deny working people the
right to unite for their mutual pro
tection. We shall see that it will go
on, from bad to worse. The destruc
tion of the trade unions has only just
begun. Everybody is to be per
mitted to organize but the workers.
They are dangerous.
Back before the civil war, when
Kansas was controlled by slave-own
ers, the legislature of that state
passed a law providing imprisonment
for not less than two years for any
one who denied, by .spoken or written
word, "the right of persons to hold
slaves in this territory." The crim
inals then were the people with moral
courage enough to break the law. It
matters little whether the economic
interests that control a state derive
their power from ownership of the
bodies of human beings or of the re
sources by which human beings keep
their bodies alive, privilege will be
found enacting laws that compel the
people to be docile dupes or criminals
—one or the other.
One hundred years ago, labor in
England was in a state of bestial slav
ery. The law forbade workers to
unite. Trade unionism was a crime.
The British government sent thous
ands of men to prison and to the pen
al colonies for attempting to organize
trade unions to better the conditions
of the working people. Australia and
New Zealand were founded by such
criminals. When enough people had
broken the law it was repealed, and
trade unions became legalized. That
is the natural course of events—pro
gress by negation. If everybody
obeyed every foolish law there would
soon be a new race of sheep.
Another court has recently grasped
civilization by the throat and hurled
it one hundred years back through
the spaces of time. On July 22, at
Charleston, West Virginia, three coal
miners were sentencd to six months
each in prison for violating an injunc
tion by Federal Judge McClintic. The
charge against them, made by the
Loup Creek Coal Company, was that
they were trying to organize the non
union miners. Organizing a union
was the crime.
The owners of coal mines may or
ganize to their hearts' content, and
they may charge the public any price
they wish for the coal that old Mother
Nature put into the ground a hundred
million years before there was a man
on the face of the earth. But the men
who go down into the dark caverns
of the earth, and in the face of death,
bring out this precious commodity,
are denied by order of a United States
judge from uniting as brothers to help
one another protect themselves from
some of the richest and most ruth
less exploiters in the world. Now the
government takes away from these
poor miners this right which they se
cured a hundred years ago, and which
no civilization since that day has de
nied them.
We should be concerned for the min
ers, their wives and children; but we
should be concerned more for the rest
of us. We should be concerned for
the fact that a society that can take
such a step is moving into a position
in which it is in danger of breeding
law-breakers. Such restraints of the
common liberties mean that law
breakers will inevitably arise, because
enforcement of the law means slav
ery as the fate of the working people.
That is the extremity to which the
rulers of things are driving the work
ers in this year 1922. They are cre
ating a situation in which the work
ing people are apt to develop sym
pathy for the criminal and disrespect
for the law.
This tendency is one of the many
Very obvious evidences of the decay
of the present economic system. It
behooves us to be busy building a
better system to take its place, and
to learn how to carry on our own af
fairs in a free society without the aid
of governments.
"HONORS" THRUST UPON US
An examination of the attitude
of the British government toward
the Co-operative Movement since
1914 shows some striking facts.
The Co-operative Movement dur
ing the war was the one agency
that stabilized prices and prevent
ed profit business from being ab
solute and undisputed master of
the situation. As soon as it was re
CO-OPEKATION 147
vealed that the Co-operators stood
between the people and the profi
teers and prevented the latter from
enjoying the full benefits of their
war, the British government be
came openly hostile to the Co-opera
tors. It is naturally surprising to
us on this side of the ocean to see
the interest taken by our British co
operative friends in the "honors" of
knighthood which that same gov
ernment now is wont to bestow.
The other day Mr. Clynes, the
leader of the Labor Party, in the
course of debate on "honors," in
the House of Commons, bewailed
the fact that the Co-operators "never
had received the same state recog
nition that was given to others."
It would seem that the Co-opera
tors actually covet the chains that
would bind them to the decaying
institution which the Co-operative
Movement would supplant. This is
really the great British mystery.
We have every respect for the
British Co-operators. They have
made the greatest contribution to
the cause of social justice of any
people in the world. We look to
them as our teachers. This royalty
business is simply a matter that we
can not understand.
It really seems to us that some
day British Co-operators will come
to the realization that the interests
of Co-operation and the interests
of the British government are ut
terly opposed. The British Isles are
not big enough to hold both. So
long as the government is controlled
by the profit system of business, it
must be hostile to Co-operation. And
when the profit system of business
ceases to dominate the economic
life of the British people there will
be no "royal honors." But what is
more important, when the co-opera
tive societies become the dominant
economic force, there will be no
further need for a British govern
ment.
THE NEED OF BEAUTY
Co-operators should create beau
ty wherever they can. The people

148 CO-OPERATION
need beauty and have been de
prived of it all too long. Unaes-
thetic, dirty, inharmonious sur
roundings are degrading. The
places of beauty have been de
bauched. The modern industrial
center is commonly a scene without
art. Show and cheapness are its
aim. Beauty is introduced when it
pays dividends.
It is most encouraging to see the
co-operative societies of Europe tak
ing the lead in making their factories
and places of business attractive. The
Belgians set an example when the
Society of Ghent employed the great
Flemish artist von Boesbroeck on
full time, established him in a studio
on their premises and instructed him
to create works of art, statuary and
mural paintings for the enjoyment
of the people.
The splendid and airy factories of
the German Wholesale are models of
beauty in industrial plants. The
flower boxes in the window's of
the Scottish Wholesale's factories at
Shieldhall give joy to all of the
workers. Spacious grounds and ten
nis courts about the C. W. S. biscuit
factory at Crumpsall lighten the toil
of the workers. The beautiful build
ings of the Swiss Union give satisfac
tion and encouragement to all Co-
operators.
It is a striking fact that when the
people—what have been called "the
dull and stupid mass" — take things
in their own hands they display a
satisfaction in having the beautiful
things of which they had previously
been deprived.
We need in our American move
ment to see the expression of the
aesthetic. The co-operative building
can have flower-boxes at the win
dows. It can be at least clean and
neat. And the co-operative hall can
be made artistic. Beauty is one of
the things that leads people onward
and upward. It is in response to a
natural desire which Co-operation
can fulfill.
THE COAL MINE
When the miners in England went
on strike last year, they were called
out of every mine in Great Britain
except the Chilbottle mine, owned
by the Co-operative Wholesale So-
city. During the present coal crisis,
the miners in the Chilbottle mine have
had steady work with union condi
tions and union wages. Now, while
the other coal miners are resentful
ly at work or are unemployed, we
learn that the Chilbottle coal mine
has given its workers two weeks' va
cation with pay. Here is a coal
mine owned by the coal consumers
of England which is successfully
operated, and in which the conflict
between mine owners and workers
does not exist. It should be enough
to set people thinking.
THREE REASONS
There are three reasons for almost
everything. If a man wants to do
something bad he can scare up three
reasons to justify it. And all good
deeds have at least three good rea
sons behind them. A Scotchman
walking along the road was hailed by
a neighbor standing at his gate. The
neighbor asked him' to come over
very close; and when he got very
close, he asked him if he would not
come in and have a "wee drop." "No,
thank you, I must decline," said the
first Scot. And in response to the
expression of astonishment upon the
face of the second, he proceeded:
"For three reasons. First, I am on
my way to attend a meeting of the
Board at the Kirk. Second, I am a
member of the Sons of Temperance.
And third, I have just had a drink."
There are three reasons why every
body should be a Co-operator. First,
it brings people together in brother
hood irrespective of creed. Second,
it gives them membership in the
greatest voluntary fraternity in the
world that aims toward justice, har
mony, and education—and that means
temperance. And third, it promotes
plenty by enlarging the access to all
of the good things of life. J. P. W.
CO-OPERATION
SEEN HERE AND THERE
By J. P. W.
Bolton, England, is not one of the
big cities, but its co-operative society
has 50,000 members, representing
more than half of the families in the
city. It has steadily grown since
1859, when it was founded. Long be
fore that time efforts had been made
to start .societies, but they had failed.
Then the society that was to succeed
got started; that seems to be the
general history.
There must have been something
portentious about this society for it
inspired confidence. One of the old
pioneers is quoted in the History of
the Society, as follows:
"I remember the present Derby
Street shop being opened, and the
consternation it caused among
the private shopkeepers. One
old lady who kept a shop not far
away, was made ill when she
went to the door and saw the
lights, and all the people
streaming in."
A continuous line of prosperity has
been the lot of this society. Its busi
ness in 1921 amounted to over $10,-
000,000. Its business buildings are
the finest in the city. Among these
are a big central department store, 60
grocery and provision stores, 30 meat
shops and 12 boot and .shoe stores.
The tailoring and clothing business is
the largest in the city. There are
also furniture, jewelry and: confec
tionery stores, restaurants, a coal
business, laundry, bakery, and cream
ery.
The bakery bakes 2,000,000 two-
pound loaves of bread a year. The
shoe department repairs 2,000 pairs
of shoes a week. The milk depart
ment began in 1886 with one wagon;
now 30 wagons deliver 10,000 quarts
daily.
The Society owns three farms. It
employs over 1,200 people. Some 110
trucks and wagons are required in
its delivery business. It owns 80
railroad coal cars to carry coal from
THE BOLTON SOCIETY
149
the mines to its coal sidings at Bol
ton. It supplies its members with
100,000 tons of coal a year. Over 40
trucks are delivering coal all day.
This department started with one de
livery truck in 1892.
The Society manufactures its own
electricity at its own central power
station. Last year it distributed
$1,000,000 in cash savings-returns to
its members. It has a $1,500,000 re
serve fund invested in gilt-edged se
curities.
No wonder the profit-making
tradesmen of Bolton have always
been concerned about this society. In
1895 a meeting to retail grocers of
Bolton was held to establish an or
ganization "to fight the co-operative
stores." The chairman of the gro
cers' meeting said: "This Co-opera
tive Movement is taking away the
prosperous business of grocers and
provision dealers and leaving them
mere skeletons of what they were.
There is no use denying that the co
operative .society does the largest
business in Bolton. It does three-
fourths of the trade in the town."
A year later, at a meeting of The
Bolton Grocers' Association the presi
dent lamented that the grocery busi
ness in Bolton was bad and they knew
the reason why. "The reason was
that they had to contend with a great
monopoly which took most of the
trade. It seemed to him that the
town was under the cloud of this co
operative society, and he thought it
was a reflection upon th city govern
ment that the co-operative society
should have the credit of having a
better library than the city itself.
They often heard of people joining
the co-operative society because of
the great facilities for obtaining
books, and he did not see why the
city should come second to a trading
society." Altogether, the grocers
thought that Co-operation is a bad
thing.

150 CO-OPERATION
The educational building of the
Society is one of the most beautiful
buildings in Bolton. The fire-proof
library has 30,000 volumes. It has
a reading room with desks for 130
readers. It receives 140 papers and
magazines and lends out 2,500 books
a week.
The Educational Department con
ducts evening clasess and lectures, or
ganizes picnics and excursions, main
taining scholarships, carries on a
men's guild and a women's guild, has
a choral society, and spends an an
nual appropriation of $15,000.
The Society started its building de
partment in 1868. The plan was to
enable members to acquire their own
homes. It lends money to members
at 4 per cent interest in amounts up
to 90 per cent of the value of the
property. The interest rate was at
first 6*4 per cent. This was found
too high, and it was reduced to 5 per
cent, and later to 4 per cent. The
loans are to be paid back at the rate
of two cents a month for every $5.00
borrowed, thus giving the borrower
twenty years to pay off the loan. This
long term has not been necessary, as
in nineteen cases out of twenty, the
loan has been paid off in a quarter of
that time.
The system adopted by the Society
has many advantages. Up until 1909,
5,630 members of the Society had bor
rowed money for acquiring homes and
of these 3,182 had paid off their mort
gages, the total advances amounting
to $7,000,000. The Society began by
purchasing cottages. Then vacant
land was bought and houses built by
the Society.
Members were permitted to select
their own plans and have the sort of
house built that they wanted. They
could buy a house already construct
ed, or they could rent a house from
the Society for any period of years
up to 99 years. Property was pur
chased in various sections of the
town so that members would have a
choice of location. The cottages
built by the Society were in every re
spect .superior to the general class of
working men's houses.
After the enterprise had been got
ten under way, and plans and stand
ards created it was found that build
ing could be left to the owners them
selves, and the House Building De
partment soon developed into a House
Purchase and Mortgage Department.
This housing enterprise has had a
pronounced effect upon the building
trades. Houses are now built to suit
the requirements of intended pur
chasers, whereas formerly they were
built in monotonous routine for rent
ing purposes. The result is that fully
one-fourth of the new residential
house properties of Bolton is mort
gaged to the co-operative society,
and it has become the most important
factor in the community in the de
velopment of houses for the people.
The important fact about this
housing scheme is that most of the
6,000 people who have gotten houses
through The Bolton Society have used
the "dividends" from the store to
make the payments. Many a work
ing man's family in Bolton have ac
tually "eaten themselves into house
and home."
CO-OPERATION IN STAFFORD SPRINGS
By C. L.
Stafford Springs is a little Con
necticut jtown of textile workers,
mostly Italian. The Workmen's Co
operative Union was organized by
the local members of the Amalga
mated Textile Workers in July,
1920.
At the begining the customary
mistakes were made. An excessive
price was paid for store, stock and
fixtures; a poor manager was in
stalled. The co-operative rapidly
lost money.
But these shrewd textile workers
did not make the common mistake
of muddling along for two or three
years under poor management, un
til three-fourths of their capital had
been lost. Within four months they
realized their mistakes, discharged
the manager, affiliated with The Co
operative League, put in The League
control system and placed in charge
of the store one Carl Campo, a tex
tile operator, who had been a care
ful and successful worker for the
union. The store was cleaned up,
the new accounting system put into
practice, and two other valiant fight
ers for the union were taken on as
clerks in the co-operative.
Today they are taking in nearly
$1,000 a week. Two trucks are
busy constantly covering the coun
try within a five-mile radius of the
little town. Of the 135 members
more than 100 are Italian. They
are still $300 short of the original
$4,000 capital invested, but are rap
idly making up for initial losses.
Two per cent savings-returns are
now being paid back regularly each
quarter to purchasing members. But
because these stalwart fighters for
CO-OPERATION 151
the co-operative commonwealth do
not believe in giving capital any re
ward whatever, no interest is given
on the members' original invest
ment.
The little store in Stafford Springs
is a model of cleanliness and neat
ness. Thanks to the control system,
any director can tell you at a glance
precisely how the business stands.
But more important than either is
the quality of the leadership. The
officers and directors are experi
enced warriors in behalf of the tex
tile workers of the district, fighters
who have outgrown the habits of
mere revolutionary soap-box orato
ry, and are now down on the ground
hard at work setting one of the cor
nerstones of the Co-operative Com
monwealth. After talking for a few
moments with these men, it is easy
to understand the neatness of the
store and the precision in the keep
ing of records. Thoroughgoing rad
icalism of ideas and clean-cut effi
ciency of method naturally belong
together.
THE ECONOMICS OF THE "MANAGE X"
A True Story of French Life
In the smoking room of a cafe,
where one afternoon in May I was
rambling on discussing Co-operation,
I noticed a familiar face of one whose
name I could not remember. When
I finished talking I started to go out
of the room to enjoy a bit of sunshine
when a man slapped me on the
shoulder.
"You do not remember me?"
I hesitated a minute. But the box
of memory opening, I replied, "Sure
ly, X."
We had been brought up together
in the same village on the banks of
the Seine, and we had been good com
rades in school.
"Are you a Co-operator, or do you
eyer expect to become one," I asked
him.
By G. GABARDO
Translated from "L'Action Co-opera tif"
"No, I have simply dropped in to
see you. I saw your name on the bill
board."
I thanked him, and said, "I am
happy to see you, but I would be much
happier if you would join the co
operative."
"We will ,see later," he said, "Will
you give me the pleasure of drinking
a cup of coffee with me at my home?
I live but a few steps from here.
At his home I found a neat but poor
interior. We talked with his wife
who was a hard worker. She was a
candy-worker who earned about a
franc and a half a day, in spite of
the fact that she had five children at
home. We talked about the co-opera
tive in the village. They both said

152 CO-OPERATION
they would like to join but they had
little money.
"We have to buy on credit at the
grocery and at the bakery. With five
children and a father and mother to
feed, we never can get enough ahead
to save for a share. We know the ad
vantages of Co-operation but what
can we do? The co-operative does
not give credit!"
It was just at this time that on
my return to Paris I had put the
proposition up to our Central Com
mittee to put aside some funds to loan
to families who might use them to
wrench themselves from the credit
merchants. The funds were voted.
My friend owed fifty francs to mer
chants. This sum seemed enormous
to him who only earned with his wife
about five francs a day; but now he
could borrow from the Central Co
operative organization. He paid off
this little debt with a loan which we
made him. He borrowed 25 francs
more and bought a share in the co
operative society.
The Central Committee had saved
his household from the credit evil; the
parasite of the poor.
About two years later on a day
when the co-operative society was
distributing its savings to its mem
bers I saw the wife of my friend come
up to the office.
"I have come," she .said, "to re
turn what I owe. "Two years ago
when I first met you, I had never
saved a sou. My husband and I were
always in debt. Today all is changed.
See!"
Then she showed me a paper which
cancelled her debt to the Central Com
mittee.
"Not only," she said, "have we re
SUBSCRIPTION CONTEST
The League offers a prize of a copy
of "The Consumers' Co-operative
Movement," by Sidney and Beatrice
Webb, to the person who will send in
the most subscriptions to CO-OPERA
turned all we owe the society. But
here is some real money, the first we
have ever possessed. It is all due to
you. How I thank you!"
I replied, "It is due to Co-operation
—not to me."
This is a real story, not a fairy tale.
The fairy Co-operation brought still
further joys to this little household.
I learned from my friend that they
wisely allowed their savings to ac
cumulate in their co-operative. This
important reserve meant all to them
for a possible "rainy day."
Several years passed. One day I
felt like having a look at my friend's
account. His deposits were more
than 300 francs.
"Capitalist," I called him, the first
time I met him face to face.
"Yes," he replied, without a smile.
"You cannot believe how this reserve
fund has added to our happiness. Be
fore I joined the co-operative I lived
and worked from day to day with the
continual fear of having to lose my
job, of getting sick. I .said to myself,
what may become of my wife and
children. My life was truly poisoned
with fear. Not only have I the com
fort of my savings but I can enjoy
daily many other things. And then
my wife! She has many good qual
ities, but she used to have, I must
confess, one little fault. When she
bought on credit, she did not count
the cost. Now when she must pay
cash, she gives much attention to the
cost of things, and this is all good for
pur household. And then, the sav
ings that we have put aside have
given her an ambitious feeling. She
wants to economize and one day she
says she even hopes that we shall own
a home. When we do we will call it
'The Villa Co-operative'."
TION during the period July 1 to
October 1. The contest is open to all.
Sample copies of the magazine and
subscription blanks will be sent on
request to those desiring to enter the
contest.
CO-OPERATION 153
FROM THE LEAGUE HEADQUARTERS
CO-OPERATIVE CONGRESS
HEADQUARTERS
The Third Congress of The League
will be held in the auditorium of the
Lexington Hotel, Michigan Boulevard
at 22nd Street, Chicago, October
26th, 27th and 28th. Arrangements
have been made with the hotel
for special convention rates, Hvhich
will enable delegates to live at the
hotel where the Congress takes place.
The special rates for delegates are
as follows:
Two in room, without bath, $1.50
per day each.
Two in room, with bath, $2.50
per day each.
One in room, without bath, $2.00
and $2.50 per day.
One in room, with bath, $3.00,
$3.50 and $4.00 per day.
Delegates should send in their res
ervations to the Lexington Hotel as
early as possible, stating that they
are attending the Congress of The
League, in order to obtain special
convention rates.
COMMITTEES AND TENTATIVE
PROGRAM THIRD CONGRESS
The following committees have
been appointed by the Executive
Board, authorized by the Board of
Directors, to prepare and present
to the Congress formulated Reports:
Accounting — A. W. Warinner
(Kansas City, Mo.), Chairman; M.
W. Cheel (New York City), A. S.
Brewer (Hannibal, Mo.), F. L.
Kerzie (Seattle, Wash.), D. E. Baird
(East St. Louis, 111.), Martin Weber
(Scranton, Pa.), H. E. Gaskill (Mid-
dleport, Ohio), H. V. Nurni (Vir
ginia, Minn.).
Banking—(Co-operative and Labor
Banks) — Walter F. McCaleb
(Cleveland, Ohio), Chairman; F. C.
Howe (Washington, D. C.), Caro D.
Coombs (New York City), R. F.
Bergengren (Boston, Mass.), R. B.
Mclntyre (New York City), Ger
trude M. Shelby (New York City),
W. H. Johnston (Washington, D. C.).
Competition— (How to Meet the
Chain Stores and other Competi
tors)—Ernest Aim (Chicago, 111.),
Chairman; J. W. Snider (Villa
Grove, 111.), O. Hirt (Erie, Pa.), Roy
Shanks (Cleveland, O.), H. J. Toal
(Milwaukee, Wis.)
Credit Trading — (How to Avoid
Credit Trading)—T. D. Stiles (Cres-
son, Pa.), Chairman; W. D. Hontz
(Lehighton, Pa.), L. LeLievre (Sault
Ste Marie, Mich.), W. Niemela
(Maynard, Mass.), A. W. Wariner
(Kansas City, Mo.).
Taxation of Co-operative Societies
—(How to Handle the Matter of
Taxes on Profit, Incomes and Sales)
—H. Rappaport (New York City),
Chairman; K. E. Grandahl (Fitch-
burg, Mass.), O. L. Endres (Utica,
N. Y.), Ernest Reynolds (Fargo,
N. D.).
Education—(How Best to Promote
Co-operative Education; How to
Organize Publicity; Newspapers,
Labor, Farmer, etc.)—S. Alanne
(Superior, Wis.), Chairman; J. L.
Afros (Brooklyn, N. Y.), A. P.
Bower (Reading, Pa.), J. P. Doyle
(Mt. Vernon, 111.), W. C. Lansdon
(Salina, Kans.), Cedric Long (New
York), E. L. Harrison (Lexington,
Ky.), Dr. G. L. Kennedy (Villa
Grove, 111.), A. S. Coyle (Cleveland,
Ohio).
Spurious Co-operative Schemes —
(How to Help Labor Avoid Spuri
ous Co-operative Schemes)—A. P.
Bower (Reading, Pa.), Chairman;
J. A. Duncan (Seattle, Wash.),
Stanley M. Gue (SariDiego, Calif.),
J. Pilgrim (Binghamton, N. Y.), H.
Rappaport (New York City), Thom
as Bell (Los Angeles, Calif.), W.
H. Stober (Clarkeston, Wash.),
John H. Walker (Springfield, HI.),
N. S. Bell (Tucumcari, N. M.), L. H.
Collett (Riverbank, Calif.).
Promotion of Co-operation by Trade
Unions — John H. Walker (Spring
field, 111.), Chairman, T. H. Bell
(Los Angeles, Calif.), A. P. Bower
(Reading, Pa.), J. W. Catley (Kansas
City, Kans.), T. J. Donnelly (Colum-
1

154
CO-OPERATION
bus, Ohio), J. A. Duncan (Seattle,
Wash.), Allan Haywood (Taylorville,
111.), Wm. H. Johnston (Washington,
D. C.), W. Robson (Detroit, Mich.),
J. Schlossberg (New York City, N.
Y.), G. W. Patterson (St. Louis, Mo.),
R. H. Salter (Lewiston, Idaho).
Legislative — Herschel H. Jones
(New York City), Chairman, R. A.
McGowan (Washington, D. C.), W. F.
Seigenthaler (Nashville, Tenn.), Louis
B. Blachly (New York City), Arthur
LeSueur (St. Paul, Minn.), H. Rappa-
port (New York City), W. G. Morse
(New York City), E. P. Harris
(Montclair, N. J.). This committee
was created by the Second Co-oper
ative Congress at Cincinnati and
will report to the Third Congress
at Chicago.
Women's Guilds— (How to Interest
and Organize the Women)—Mrs.
Isabella Wilson (Perth Amboy, N. J.),
Chairman, Mrs. D. R. Hooker
(Baltimore, Md.), Mrs. M. W. Cheel
(New York City), Miss Ernestine
Friedmann (Bryn Mawr, Pa.), Mrs.
Arthur LeSueur (St. Paul, Minn.),
Mrs. Ed. Solem (Minneapolis,
Minn.), Mrs. M. J. Radka (Bloom-
ington, 111.), Mrs. J. N. Perkins
(New York City).
Agricultural Co-operators — (How
may Farmers best be Organized as
Consumers as well as Producers; How
may the Work of the Farmers' Or
ganizations best be Assisted by The
League; How may the Farmer's Or
ganizations Assist The League) —
W. C. Lansdon (Salina, Kans.), Chair
man, C. S. Barrett (Union City, Ga.),
L. E. De Voss, (Kansas City, Kans.),
J. P. Doyle (Mt. Vernon, 111.), A. S.
Goss (Seattle, Wash.), E. L. Harri-
son (Lexington, Ky.), L. S. Herron
(Omaha, Neb.), A. E. Cotterill (Leon,
Iowa).
District Leagues—(How to Organ
ize District Leagues; How may The
Co-operative League best Work with
and Serve the District Leagues; The
Status of District Leagues) —L. H.
Woodcock, New York City, N. Y.),
Chairman, G. W. Patterson (St. Louis,
Mo.), T. J. Donnelly (Columbus, O.),
S. Alanne (Superior, Wis.), Kather-
ine Bickley (Cleveland, 0.), W. Nie-
mela (Maynard, Mass.), J. E. Robb
(Cleveland, 0.), Henry W. Shelton
(Winwood, Pa.), Geo. Savage (Ohio),
Roy Shanks (Cleveland, 0.), H. J.
Toal (Milwaukee, Wis.).
Store Management — (Problems of
Store Management) — Richard Hen-
schke (Utica, N. Y.), Chairman, Er
nest Aim (Chicago, 111.), Chas. Burt
(Ishpeming, Mich.), J. Anderson
(Rothsay, Minn.), K. E. Grandahl
(Fitchburg, Mass.), L. LeLievre
(Saulte Ste Marie, Mich), Wm. Lorenz
(Mt. Olive, 111.), Peter Moerth (Staun-
ton, 111.), C. C. Rakow (Bloomington,
111.).
Intercollegiate Co-operative Society
—Rev. Joseph Reiner (Milwaukee,
Wis.), Chairman, LeRoy Bowman
(New York City, N. Y.), Calvin
Bridges (Leonia, N. J.), August
Brockland (St. Louis, Mo.), Gertrude
Coit (New York City, N. Y.), Wm.
Heilman (Flint, Mich.), G. N. Lauman
(Ithaca, N. Y.), Catherine Lillie (Chi
cago, 111.), Cedric Long (New York
City, N. Y.), Guido Marx (Palo Alto,
Cal.), Rev. R. A. McGowan (Wash
ington, D. C.).
Bakeries—A. Shiplacoff (Brooklyn,
N. Y.), Chairman, Otto Arlund
(Brooklyn, N. Y.), O. Endres (Utica,
N. Y.), B. Levine (New Bedford,
Mass.), J. Goldberg (Lynn, Mass.), S.
Roffman (Paterson, N. J.).
Milk Distribution—Ed. Solem (Min
neapolis, Minn.), Chairman, 0. J. Ar-
ness (Cleveland, 0.), K. E. Grandahl
(Fitchburg, Mass.), W. Niemala
(Maynard, Mass.), J. Liukku (Wauke-
gan, Dl.).
Restaurants — Miss Mary Arnold,
Chairman (New York City, N. Y.),
Otto Arlund (Brooklyn, N. Y.), B.
Nelson (Chicago, 111.).
Laundries—Louis B. Blachly (New
York City, N. Y.), Chairman, J. G.
Campbell (Lynn, Mass.), L. W. Lowry
(Little Rock, Ark.), Chester Leighty
(New York City, N. Y.), Cedric Long
(New York City, N. Y.), M. A. Griffin
(Seattle, Wash.).
Coal Distribution — G. L. Kennedy
(Villa Grove, 111.), Chairman, P.
Moerth (Staunton, 111.), W. D. Hontz
(Lehighton, Pa.), S. Goldberg (Wood-
ridge, N. Y.).
Housing — Daniel Hoan (Milwau
kee, Wis.), Chairman, Ethel Arms
(New York City, N. Y.), H. P. Vaughn
(New York City, N. Y.), A. D. War-
basse (Brooklyn, N. Y.), Edith R.
May (Brookline, Mass.), C. E. Thar-
aldsen (Evanston, DL), Grace Drake
(New York City, N. Y.), Mrs. R. G.
Stone (New York City, N. Y.), C. S.
Stein (New York City, N. Y.).
Insurance—(Co-operative Life, Fire
and Liability Insurance) — Boris Fo-
gelson (Woodridge, N. Y.), Chair
man, G. B. L. Arner (New York City,
N. Y.), Daniel Hoan (Milwaukee,
Wis.), Ben L. Peters (Omaha, Neb.)
Wholesaling—(Problems of Whole
saling and Possibilities of Federation
of District Wholesales)—John Num-
mivuori (Superior, Wis.), Chairman,
L. E. De Voss (Kansas City, Kans.),
A. S. Goss (Seattle, Wash.), W. Nie-
mela (Maynard, Mass.), T. D. Stiles
(Cresson, Pa.), Robt. McKechan (East
St. Louis, 111.), C. McCarthy (Oma
ha, Neb.)
Constitution of The League—Agnes
D. Warbasse (Brooklyn, N. Y.),
Chairman, S. Alanne (Superior, Wis.),
John F. McNamee (Cleveland, 0.),
C. F. Duncan (Erwin, Tenn.), W. H.
Closser (Saulte Ste. Marie, Mich.),
L. S. Herron (Omaha, Neb.).
Local Arrangements — John Ash-
croft (Chicago, Dl.), Chairman, J.
Doornheim, Mrs. Anna K. Hulburd,
Peter Kramer, M. E. Shaver, A. V.
Vesely, Mrs. Dora Nordboe, H. G.
Schmidt. ______
ADVICE TO STORE MANAGERS
Inventory Taking
A semi-annual audit is not suffi
cient. It should be at least quarter
ly; and with a new manager, once a
month.
Inventory taking is very impor
tant. Do not estimate anything.
Never figure on prices of a pre
vious date, but at the present
market rate. Use loose leaf sheets,
which can be bound later. A
proper arrangement of goods plain
ly tagged is necessary. Do not buncli
goods and place a lump value on
CO-OPERATION 155
them. The manager should not do
the work alone. Several of the di
rectors can do it quicker by working
in pairs on a holiday when the store
is closed. If bins are known to con
tain a certain amount of bulk goods
when full, the amount at inventory
taking may be arrived at by meas
urement. (See The League's spe
cial sheets for taking inventory at
selling price). Wholesalers furnish
printed inventory sheets alphabetic
ally arranged, which are useful for
taking inventory at wholesale prices.
Control of Stock
Remember, a cash register does
not control the business in the least.
It simply keeps a record of the
money received and is a safer re
pository during the day than a
drawer under the counter. Each
night the cash should be deposited
in the bank, and the cash register
totalizer read by the treasurer or
secretary in the presence of the
manager, before setting it again.
The control of stock can only be
ascertained by using record sheets
daily for all goods received, return
ed, sold, shortaged, destroyed; and
The League's "Control System" is
recommended for this purpose.
It is necessary to keep careful
records and have them signed by
the manager, turned over to the
Control Committee, who check them
up with the invoices and enter the
week's summary on separate loose
leaf sheets provided for that pur
pose.
Keep buying and management ex
penses always separate. It is neces
sary to show percentages of various
overhead expenses. The manager
should be required to furnish the
information which will enable the
directors to make an understand
able report to the members each
month. (See "Model Report.")
In a small store which pays its
bills promptly each week, a simple
columnar cash book like "The
Greenwood Record Book," may be
used for book-keeping purposes. In
a store where credit is given and re-

156
ceived a double entry system is ab
solutely essential. The Lague has
several systems to suggest.
The manager ordinarily should
not be required to keep books. It
is not his job, but in many small
stores he is often the only one capa
ble of doing so. When this is the
case, a monthly audit by a commit
tee of three should be demanded by
the membership. Once a year an
expert accountant should be re
quired to audit the books also. Most
managers are honest, but the direc
tors should control them neverthe
less; and the honest manager will
prefer to be checked up regularly.
Once a month the directors may ask
for a statement from the whole
salers to be sure no bills have been
mislaid or kept back. This is some
times done, waiting for a more pros
perous time to present the bills, but
it is dangerous and misleading.
In checking up a manager's ac
counts, if a shortage is discovered
and the manager cannot explain, it
is better for him to resign or be dis
missed than to go on from month
to month until the difference be
comes large. Never try to cover
operating expenses or losses by
using capital. Compare average
operating expenses constantly with
sales. If the operating expense is
10 per cent then you must add 10
per cent plus the surplus-saving
(profit) per cent to the wholesale
price.
Credit
A man who owns his own busi
ness can decide to whom to give
credit, but in a co-operative store it
is hard to discriminate, therefore
the better policy is STRICTLY
CASH, even though you lose some
customers thereby. In no case
should the co-operative store extend
credit to non-members, and only in
cases of great need, should credit
be allowed up to one-half of the
amount of share capital paid in by
a member. Where credit is estab
lished as a custom in a town, and
the co-operative store has been do
ing a credit business too, a cam
CO-OPERATION
paign of education should be started
to change the system. Coupon
books are sometimes used, where
the members pay in advance for ten
or twenty dollars worth of goods,
and the coupons are exchanged for
the goods either at the store or when
the deliveries are made. Account
books may be used instead of cou
pon books, and indelible notations
made to be subtracted from the ori
ginal amount paid in, until the
total is exhausted. This obviates
the necessity of paying cash to de
livery clerks, and also has the added
advantage of supplying the store
with more advance working capi
tal. Most people can arrange to de
posit ten or twenty dollars in ad
vance if they try. (See "How to
Start and Run a Co-operative
Store.") ______
MATERIAL FOR POSTERS
M. E. Shaver sends in the follow
ing suggestions for store posters:
"The co-operative ideal is pro
duction and distribution for USE in
stead of for PROFIT."
"The Co-operative Movement is
the only democratic movement with
economic power."
"Join the Co-operators and save
the unearned profit."
"Why work so hard and give part
of your pay to others in the form of
unearned profits. Join the1 co-oper
ative and save it."
"The Co-operative Movement is
of the people, by the the people and
for the people, while private busi
ness is of the capitalist, by the capi
talist and for the capitalist."
"Join the Union of Consumers,
and free yourselves from the profit
system and the profiteers that go
with it."
In the center of the busy section
of the city of Glasgow, one is sud
denly confronted by the following
words .painted in huge letters on the
side of a building:
"Co-operation helps you and
yours. Join the store nearest your
door."
f f
CO-OPERATION 157
NEWS AND COMMENT
CONVENTION OHIO DISTRICT
CO-OPERATIVE LEAGUE
The second annual convention of
the Ohio District League was held
at Columbus on June 24, 1922.
There was a just appraisal of Co
operation, its present status, and its
possibilities. Each delegate spoke
and acted with understanding. Cold
business problems were met and
dealt with, while at the same time
the ideals and faith in the Move
ment was revealed in every action.
The spirit of the meeting was that,
"Co-operation is right and must
go forward." Delegates counselled to
build substantially. It was pointed
out that the British were three years
getting their buying agency estab
lished. It was shown that the ground
should be carefully broken and fer
tilized with co-operative education
before the sprouts of business enter
prises could be expected to survive.
Labor delegates representing
trade unions were unanimous in
their opinion that Co-operation was
a part of the labor movement, that
it had come to stay, and was the in
telligent method of fighting the in
justices imposed upon the laboring
masses. They maintained that the
trades union movement, by its very
nature, was a defensive organiza
tion and at the present time was be
ing forced to retreat and retrench,
while Co-operation showed the way
to a forward movement.
President Thos. J. Donnelly
opened the convention with an ad
dress, dealing with the need for Co
operation. Vice-president, G. W. Sav
age stated that the policy of the
Ohio miners was for Co-operation
and that as soon as their strike was
settled they would be in a position
to lend more aid to the movement,
Secretary-treasurer John F. McNa-
mee reported that letters and bulle
tins had been sent to all trade
unions and co-operatives, soliciting
support to the Ohio district, he re
ported funds in the treasury.
The convention endorsed the ef
forts of the officers to raise funds
for the purpose of placing an audi
tor and advisor in the district and
instructed them to continue the ap
peals to the co-operatives, and the
State Federation of Labor, and also
to establish a central buying agency
as soon as practical. The officers
were instructed to arrange for the
introduction of The Co-operative
League's Model Co-operative Law
in the Ohio Assembly and to work
for its passage. The Secretary-
treasurer was instructed to issue an
educational bulletin monthly to the
co-operatives and others in sympa
thy with the Movement.
Delegate from the Cleveland Fed
eration of Labor, Henry W. Raisse,
advised the convention of a plan
that was being worked out in his
city. The federation had selected
a committee to meet with a like
committee from the1 Cleveland Dis
trict Co-operative League to handle
and present Co-operation to the la
bor movement of Cleveland. A let
ter of greetings was read from The
Co-operative League of the United
States of America, and representation
of the Ohio District at the Third Na
tional Congress was left in the hands
of the officers. The board of direc
tors were re-elected and the vacan
cy of Brother E. Corrigan, deceased,
was left to be filled by the officers
selecting a representative from the
Brotherhood of Locomotive Engi
neers Co-operative National Bank.
The time and place of the next con
vention was referred to the incom
ing board of directors. The offi
cers for the ensuing year are:
President, Thos. J. Donnelly,
Ferris Building, Columbus, Ohio;
Vice-president, G. W. Savage, Rug-
gery Building, Columbus, Ohio; Sec
retary-treasurer, John F. McNamee,
2112 East 46th Street, Columbus,
Ohio; Members: E. L. Kitchens,
3918 Regent Avenue, Cincinnati Ohio;
R. G. Donaldson, Crestline, Ohio; F.
H. Disbennett, 503 West Church

158
Street, Orrville, Ohio; F. H. Johnston,
Middleport, Ohio; J. F. Huron, Dillon-
vale, Ohio. Vacancy to be filled by
Board.
The Ohio District Co-operative
League is affiliated with The Co
operative League.
PRESIDENT'S OPENING ADDRESS
By THOS. J. DONNELLY
Fellow Co-operators, Ladies and
Gentlemen: I am pleased to greet
you as delegates and visitors to the
Second Annual Convention of the
Ohio District Co-operative League.
We are meeting in Columbus this
year to review the progress made
and to counsel together over prob
lems confronting the Co-operative
Movement. May our convention be
a success from both a business and
fraternal standpoint.
The Co-operative Movement and
the labor movement should go hand
in hand. Labor organizes upon the
economic field into the trade union
for the purpose of collective bar
gaining as to production on the part
of labor. The Co-operative Move
ment is an effort to bring about col
lective action first as to consump
tion and later as to production. Ev
ery union man should be a Co-oper
ator and every Co-operator should
endeavor to build up his union.
There are two processes by which
the worker is victimized. One—
when the worker takes a job he sub
mits to work for the price and un
der the conditions agreed upon by
his employer. The wage that he
receives determines his standard of
living. The last half century has
meant some remarkable progress
for the workers as a result of his
collective bargaining.
Nevertheless, the employer still
controls the job and says whether
the worker shall work or not work,
and by the virtue of such control,
determines the kind of a living the
worker s'hall have, the kind of a
roof that shall be over his head, and
the kind of clothes he shall wear;
yes, even, the kind of an education,
if any, that the children of the
CO-OPERATION
worker shall have. Thus the work
er is economically dependent upon
the owner of the job.
In this process he has neither
voice nor vote, he is without repre
sentation whatsoever upon the in
dustrial boards that control indus
try and the jobs therein. His only
hope of self preservation, in this
respect, is through the recogniza-
tion gained by his trade union.
The worker is victimized in just
the proportion that he is dependent.
If his union is strong and he is well
organized 'he gains more concessions
than if he is poorly organized; he is
forced to work for as small a wage
as possible, and that wage must rep
resent a profit to his employer or
he does not work.
Now the other process. Wages
mean just what they will buy, no
more, no less. After the struggle of
the trade union for nr-.ora v/ages,
sometimes bitter and fierce, the work
er finds that the increase in income
does not compare favorably with the
increase in the cost of the things that
he must buy to live. And, in this
phase he has neither voice nor vote,
he must pay the price that is asked.
He is taxed without representation.
Our forefathers declared against this
and gave birth to our nation. It re
mains to be seen whether we shall
maintain the traditions of our fore
fathers or submit to a business des
potism, ruled by commercial and in
dustrial kings and barons.
Of course, it is important that we
vote right. It is better to have our
friends in the political places than
our avowed enemies, but behind all
political oppression stands the throne
of the business oligarchy, and as long
as the throne remains powerful the
oppressions will continue. (Weaken
the throne and you smite political
corruption. Workers all over the
world have grasped this situation, and
in many places are dealing some very
effective blows. In Great Britain the
workers have a voice and a vote in
better than one-third of the business
transacted in that country. We should
do even better here.
There are in Ohio .some seventy
Rochdale co-operative societies which
have as their goal the placing of busi
ness in the hands of the people on a
democratic basis, and the success of
which will mean death to the business
oligarchy. Co-operation simply means
the people getting together and run
ning their own business. The prin
ciple is right and is sure to succeed.
The call to this Convention :em-
bodies some of our immediate im
portant steps, and if we arrange to
carry out all of these we shall not
have met in vain. However, it is al
ways good for us to get together and
exchange experiences. Your officers
have endeavored in every way to pro
mote your movement and to bring
it more forcibly to the attention of
labor.
Your Secretary-treasurer, Brother
McNamee, will have a report to sub
mit to you and with it will be some
of the recommendations of your of
ficers. It is hoped that you will be
able to act upon the recommendations
in such a manner that your officers
may be able to advance the Co
operative Movement in Ohio. In
closing, permit me again to extend
greetings to you upon behalf of the
officers of the Ohio District Co-opera
tive League and wish you a pleasant
and instructive day in Columbus.
NEBRASKA SURVEY
From the "Nebraska Union Farm
er," we learn the result of the third
annual survey of co-operative socie
ties in Nebraska which has just been
published as Bulletin No. 118 by the
Nebraska State Department of Agri
culture. In gathering and compiling
the data, the Department of Agricul
ture was assisted by the College of
Business Administration of the Uni
versity of Nebraska. The data were
obtained by means of questionnaires
sent out by mail.
Of 281 returns received, 230 were
considered complete enough to use.
The survey, therefore, is incomplete.
The records of the Secretary of State
show that there are in the state 645
CO-OPERATION 159
co-operative associations with capi
tal stock, which, of course does not
include shipping associations without
capital stock and farmers' straight
stock corporations.
The sales of 221 companies that
reported on this item totaled $39,-
882,512.00 in 1921. This figure has
been published by newspapers as re
presenting the sales of Nebraska co
operatives last year. 'Considering
that the survey covered only about
one-third of the co-operative associa
tions of the state, it will be seen that
this figure is way below the real total.
ENGINEERS' BANK PAYS SAVINGS
RETURNS
The Brotherhood of Locomotive
Engineers Co-operative National Bank
of Cleveland has mailed out "savings
dividend" checks to 9,000 depositors.
This is in addition to the regular 4
per cent interest, compounded every
quarter from date of deposit, a fur
ther dividend of one-half of one per
cent for the past six months, or at
the rate of 1 per cent a year. The
total return to depositors is in excess
of 5 per cent, because of the pro
vision for compound quarterly inter
est. Shareholders are receiving 6
per cent on their investment.
The Brotherhood o f Locomotive
Engineers Co-operative National Bank
was the first national bank in the
United States to share its earnings
with depositors. The resources of
the bank have increased in the 19
months of its existence from $653,-
000 to $15,000,000, and are growing.
NORTHERN STATES CO-OPERA
TIVE LEAGUE
The Executive Board of the North
ern States League has held regular
monthly meetings at Superior, Wis
consin. Plans were made for a cam
paign of education to be conducted
by speakers visiting the various so
cieties, by means of summer schools
and by sending out literature. A cen
tralized auditing service is being ar
ranged for, and the publication of a

160
year-book is under consideration.
Mrs. Solem of Minneapolis has spoken
at two meetings under the auspices
of the League, Mr. Sondergaard of
Minneapolis has spoken once, and Mr.
Alanne has spoken at several meet
ings. The annual convention will be
held at Minneapolis in October.
WAUKEGAN OPENS NEW DAIRY
The Co-operative Trading Com
pany, of Waukegan, Illinois, has open
ed up a new dairy plant, in response
4o the growing demand of its dairy
business. It took five months to com
plete the new home of the co-opera
tive dairy, which is patronized by one-
fourth of the people of Waukegan.
This co-operative has a membership
Of nearly 700 consumers. Savings-re
turns of 8 per cent have been paid
on milk and cream purchasers, though
the prices charged by the co-opera
tive dairy are two cents a quart lower
than they are in Chicago.
In addition to the thriving milk
business, this society also supplies
its patrons with groceries and meats.
The turn-over, according to the latest
report last year, was in excess of
$150,000 a year.
The Co-operative Trading Com
pany is operated on the Rochdale
plan. It makes liberal allotments to
the educational fund, distributes the
Associated Magazine and is affiliated
with The League.
MT. OLIVE SOCIETY
The mine strike has had no ap
parent effect upon the Mt. Olive Co
operative Society, of Mt. Olive, Illi
nois, even though this society is situ
ated in the coal-mining district and
has a membership of miners. The"
last semi-annual report shows that
pavings of $925 were made on the
sales of $37,000. The surplus-sav
ings were distributed as a 2 per cent
return pn purchases, and 3 per cent
was paid for loan and share capital.
The savings made by this .society,
even in the present critical times,
amounted to 11 per cent of the share
CO-OPERATION
and loan capital invested. This does
not take into account the savings
made by members who received trad
ing stamps, which are redeemable at
2 per cent cash, or about 2^ per cent
in trade. The Mt. Olive Society has
a membership of 200. There has been
no loss in membership in spite of the
strike.
FAKE "CO-OPERATIVES" IN LOS
ANGELES
The working people of Los Angeles
have been swindled by a scheme for
organizing "co-operative industries,"
according to William Steineck, deputy
commissioner in charge of the Bur
eau of Labor Statistics of California.
The State Bureau has discovered
that twenty-five firms in Los Angeles
participate in these schemes to de
fraud the wage earners. One of the
cases now being prosecuted is against
the United Cafeteria. The charge
against this concern, which recently
started activities as a "co-operative
cafeteria operated by employes," is
that the heads of the concern sold
169 jobs for an average of between
$300 and $500 each, and employed
only sixty of the job purchasers.
FARMERS BUY TOGETHER
The number of farms in the United
States reporting co-operative pur
chasing of farm supplies through
farmers' organizations was 329,449,
or 5.1 per cent of all farms. In six
states, co-operative purchasing of
farm supplies was reported by over
20,000 farms, as follows: Iowa, 32,-
530; Kansas, 32,321; Minnesota, 29,-
611; Nebraska, 27,335; Wisconsin,
21,792, and Ohio, 21,250. Important
items purchased co-operatively were
fertilizer, feed, binder twine, spray
ing materials, coal crates, boxes, etc.
BRITISH PROGRESS
The progress of the Co-operative
Movement during 1921 was reported
to the Brighton congress by the Sta
tistical Department of the Co-opera-
tive Union. The report is a summary
of the position reached by the Co
operative Movement at the end of
1921. On that date it is estimated
that there were 4,526,475 members
of co-operative societies in the United
Kingdom or 21,623 more than there
were at the end of 1920. Thus, des
pite unemployment and bad trade,
the membership of co-operative so
cieties continued to grow throughout
the past year, and there are more
Co-operators today than ever before.
At the end of 1921, these Co-opera
tors possessed share capital amount
ing to £74,190,375, while the reserve
funds of their societies amounted to
£5,238,080. They owned land and
buildings valued at over £28,000,000,
and trade stocks worth more than
£25,000,000. Upwards of 130,000
persons were employed by the retail
.societies, and these persons received
wages in 1921 amounting in the ag
gregate to £21,000,000. The sales of
retail co-operative societies in 1921,
amount to £219,000,000, and on this
trade a surplus-saving of nearly £18,-
000,000 was realized. Of this sur
plus-saving nearly £180,000 was spent
on education, while more than £136,-
000 was devoted to charitable pur
poses. These figures speak of
strength, stability, thrift and fore
sight, and demonstrate what can be
done by co-operative industry.
CHEAP COAL
The approach to the solution of
the coal problem is being made by
the Co-operative Society. Already
a number of societies in this coun
try are distributing coal to their
members. Some have developed the
largest coal business in their re
spective towns. In Europe this is
becoming the general practice. One
result is that the price of coal is
reduced. Take for example the
Progress Society in Scotland, which
created a disturbance a short time
ago by selling the cheapest loaf of
bread in Scotland. It is a "non-
dividend" society. Now it has put
down the price of coal and all of
CO-OPERATION 161
the coal dealers in Glasgow are up
in arms at such an atrocity. How
ever, there are societies which sell
coal at nearly as low a price and
then make for their members a sav
ings return which brings the cost
even lower.
HEALTH PROTECTION IN
MADRID
Since 1904, the workers of Ma
drid, Spain, have maintained a
health department in the co-opera
tive .society (La Mutualidad Obre-
ra). This provides complete medi
cal service for eight dollars a year
for each member. There are
seven clinic-hospitals in different
parts of the city, each equipped
with about ten beds, an up-to-date
operating room, a dental clinic, con
sulting rooms, an immaculate tiled
kitchen, and a garden for convales
cents. Each has a staff of physi
cians, surgeons and nurses. The
drug store connected with each hos
pital furnishes medicines free of
charge to the members, and sells to
non-members at the current price.
The co-operative society supplies the
hospitals with provisions. Each
member pays 66 cents a month to
the society. For this, besides the
benefits of membership, he receives
free medical service, major opera
tions, consultation and advice at any
A FRENCH WEDDING GIFT
The Co-operative Union at Amiens
has an insurance department which
serves its members by alloting dif
ferent forms of (indemnities—for
deaths, sickness, accidents and for
births. In addition, quite out of the
ordinary, it now has set aside a fund
for all married couples. It awards
to the bride and groom of its co
operative members a share of 25
francs. This wedding present from
the Union is not only a welcome gift
to the young menage but it calls at
tention to the youthful couple that
they should interest themselves, as
have their parents, in their co-opera
tive society.

162 CO-OPERATION
SOCIETIES SHOULD FEDERATE
You will perhaps have noted in a recent
issue of our magazine that both the pro
vincial farmers' organizations in Canada
conducting chain stores made very heavy
losses last year. In both cases there is
a strong inside agitation for decentraliza
tion and as to which this union has been
consulted, but we do not wish to become
involved in any domestic disputes, although
anxious to be of service if decentralization
is decided upon.
Our localized societies, however, estab
lished in Ontario, have been going through
a serious crisis, and some have gone under.
In nearly every case, however, it is due to
failure to keep this union informed as to
their difficulties and progress and to put us
in a position to give counsel, information
and advice based upon thirteen years of
continent-wide experience. The inexperi
enced local directors and managers, even
though federated with the union, go blun
dering on in a spirit of isolation and ob
stinate self-confidence, and do not ask for
assistance in the solution of their problems
until they have run themselves into what
may be called an economic cul-de-sac.
We are now trying to get monthly re
ports of operations and it is the intention
to exclude societies which persist in unbusi
nesslike conduct violating the good name of
the Movement. Our progress has been from
the commencement considerably retarded
through lack of funds for educational,
propaganda and advisory purposes. We
have hundreds of institutions throughout
the country conducted without any vision
of Co-operation, but in imitation of Roch
dale principles, and if we can only get a
substantial proportion of them into line I
feel that they could without too much sacri
fice adequately finance the Movement and
increase the ratio of success, as well as
promote the permanency of the 'Societies.
GEORGE KEEN,
General Secretary.
The Co-operative Union of Canada.
LEAGUE HELPS AUSTRALIA
High Commissioner's Office,
Australia House,
London, England.
To The Co-operative League:
As chairman of the Board of Directors
of the Civil Service Co-operative Society
of Sydney, and as one greatly interested in
the success of the Co-operative Movement
in Australia, I have heard of the work done
by your League by means of tracts and
other propaganda, and publicity, and I
would esteem it a very great favor if you
could furnish me with copies of the same.
I believe good work can be done in Aus
LETTERS
tralia, and your publications give good
ideas and directions for our efforts.
D. A. W. LACHLAN.
FROM THE INTERNATIONAL LABOR
OFFICE
Societe des Nationa
League of Nations
Bureau International du Travail
International Labour Office
Geneva, Switzerland.
To The Co-operative League,
167 West 12th St., New York.
We have been very grateful to you for
sending the copy of the "Model Co-operative
State Law," which represents a very great
work indeed. When it becomes enacted it
will be, in my oponion, one of the most
complete and adequate co-operative laws,
embodying the best experience of the Co
operative Movement throughout the world.
Prom the study on "Co-operative Hous
ing," which you kindly sent me at the same
time, I recognize that your representatives
have taken full advantage of the oppor
tunities of study and observation which
their journey in Europe afforded them.
This will assuage to some extent the re
grets which I expressed in my last letter
for not having had a better opportunity of
meeting them at Basle. D. Y. PAUQUET.
EDUCATION GIVES HELP
It seems to me that every locality when
conditions are not ripe for carrying on a
distributive enterprise, may be found suffi
cient advocates of Co-operation to form a
social and educational club, which would
sooner or later change from the abstract
to the concrete. Such local circles might
maintain a library, reading and meeting
rooms, and conduct meetings, discussions,
lectures, socials, entertainments, etc., to
further the propagation of Rochdale prin
ciples.
The Glynn System (non-co-operative
scheme) has taken about $200 out of Ithaca
workmen. Thanks to The Co-operative
League, they got no more. J. G. ROTH.
Ithaca. N. Y._________________
THIRD CO-OPERATIVE
CONGRESS
Place: — Auditorium of Lexington
Hotel, Michigan Boulevard and
22nd Street, Chicago, Illinois.
Date: — October 26th, 27th and 28th,
1922.
Time of Opening: — 10 A. M., Thurs
day, October 26th.
CO-OPERATION
PUBLICATIONS
OF THE CO-OPERATIVE LEAGUE
HISTORICAL Per Copy Per 100
3. Story of Co-operation . ................................................^ .10 $6.00
7. British Co-operative Movement ........................................ .10 6.00
10. A Baker and What He Baked (Belgian Movement)...................... .05
38. Co-cperative Consumers' Movement in the United States............... .05 4.00
39. Consumers' Co-operative Societies in N. Y. State, (Published by Con
sumers' League) .................................................. .10
TECHNICAL
4. How to Start and Run a Rochdale Co-operative Society.................. .10 4.00
6. System of Store Records and Accounts................................ .50
6. A Model Constitution and By-Laws for a Co-operative Society........... .06 2.60
8. Co-operative Education. Duties of Educational Committee Defined..... .10
9. How to Start a Co-operative Wholesale................................ .10
27. Why Co-operative Stores Fail . ...... .^................................ .02 1.00
2. Co-operative Store Management ...................................... .10
14. How to Start and Run a Women's Guild................................ .05
15. How to Organize a District Co-operative League ........................ .10
MISCELLANEOUS
16. Model Co-op State Law ............................................... .10
17. Syllabus for Course wf Lectures, with References and Bibliography.... .25
46. Producers' Co-operative Industries ................................... .10
11. Control of Industry by the People Through the Co-operative Movement... .10
12. Credit Union and Co-operative Store.................................. .05 1.75
34. Co-operative Movement (Yiddish) .................................... .02 1.25
43. Co-operative Housing ................................................. .10
42. Co-op Homes for Europe's Homeless ................................. .10
ONE-PAGE LEAFLETS
(One cent each; 50 cents per 100; $2.50 Der 500; $4 per 1,000)
(1) Principles and Aims of The Co-operative League; (17) Do You Know why You Should Be a
Co-operator; (20) Why Loyalty Is Necessary; (21) Cost and Crime of Credit; (22) A Real
Co-operator; (25) Resolutions Adopted by A. F. of L.; (26) Factory Workers Co-operate!;
(28) Do You Know About Co-operation in Europe?; (40) Have You a Committee on Educa
tion and Recreation?; (44) What Is the Co-operative Movement?; (45) Schools and
Stores; (47) A Man's Right to a Job; (48) Tips to Co-operators; (49) Think It Over.
MONTHLY PUBLICATIONS
CO-OPERATION—(In bundle lots, $7.60 per hundred). Subscription, per year......... .$1.00
HOME CO-OPEEATOR, 4 pages ................................................ $1 per 100
INTERNATIONAL CO-OPERATIVE BULLETIN (Pub. by The I. C. A.)...... .per year, $1.50
BOOKS
The following booka are recommended as containing the best discussions of the modern
Co-operative Movement. They may be ordered through The League:
Bubnoff, J. B.: The Co-operative Movement in Russia, 1917......................... ..$1.25
Faber, Harald: Co-operation in Danish Agriculture, 1918.............................. 2.75
Flanagan, J. A.: Wholesale Co-operation in Scotland, 1920............................ 2.00
Gebhard, Hannes: Co-operation in Finland, 1916...................................... 2.00
Gide, C.: Consumers' Co-operative Societies, 1921...................................... 2.50
Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, $2.00; paper
bound ........................................................................... .60
Howe, Fred C.: Denmark, a Co-operative Commonwealth, 1921......................... 2.00
Maxwell, Wm.: History of Co-operation in Scotland, 1910.............................. 2.00
Nieholson, Isa: Our Story ............................................................. .25
Powell, G. Harold: Co-operation in Agriculture. Macmillan ........................... 1.50
Redfern, Percy: The Story of the C. W. S............................................. 2.00
Redfern, Percy: The Consumers' Place in Society, 1920............................... 1.00
Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918...................... 1.50
Smith-Gordon: Co-operation in Many Lands, 1920..................................... 1.50
Sonnichsen, Albert: Consumers' Co-operation, 1919. Cloth bound, $1.75; paper bound... .75
Stolinsky, A.: The Co-operative Movement. In Yiddish................................ 1.00
Webb, B. and S.: The Consumers' Co-operative Movement, 1921........................ 5.00
Webb, Catherine: Industrial Co-operation, 1917 ...................................... 1.50
Woolf, Leonard: Co-operation and the Future of Industry ........................... 1.50
Woolf, L.: Socialism and Cooperation ............................................... 1.50
"The Co-operative Consumer" and "Co-operation," III (1917), VI (1920), VII (1921).... 1.25
Transactions of Second American Co-operative Convention, 1920....................... 100
The People's Year Book, 1922...................................................... .75
(Ten cents postage should be added for books which cost more than $2.00, and five cents
for the smaller books.)

THE CO-OPERATIVE LEAGUE
(Member of The International Co-operative Alliance)
167 West 12th Street, New York
An educational organization for teaching the history, principles, methods and aims of the
Co-operative Movement and for the promotion of Co-operation in the United States.
Join The League and thus help promote the educational work of the Co-operative
Movement. Individual Membership, $1.00 a year. Subscribe for CO-OPERATION,
the Monthly Magazine of The League, and keep in touch with the Movement.
TTnr>ln

164
This commission should be a pre
liminary body. It should be created
by Congress and authorized and
empowered temporarily to control
and operate the railroads for serv
ice. It should be regarded as an
emergency body to meet the rail
road crisis.
Transportation and shipping rates
should be at a price sufficiently
above cost to provide interest on
true indebtedness, reserve for re
placement and repairs, gradual
amortization of indebtedness, and
a surplus-saving.
At the end of a period of opera
tion under the Railroad Commission,
the people should elect a Board of
Directors to take the place of the
Commission. The last function of
the commission before retiring
should be transferring the rail
roads to a new ownership basis and
turning them over to the directors
of the new owners. The new owners
should be the people of the United
States, incorporated into an organi
zation which may have a different
name if public sentiment and busi
ness expediency demand it.
The users of the railroads should
proceed to develop the capital to
pay off the old debt to the present
security holders on the basis of a
just valuation. A duplicate of each
railroad ticket and of each bill of
lading would constitute a certificate
indicating payment for services.
The citizens, precisely as they do
politically, would vote upon matters
pertaining to railroad control. The
old town meeting (the "members'
meeting") should be instituted for
the discussion of transportation
problems. Elected representatives
would have not political but eco
nomic responsibilities.
A certain percentage of the sur
plus-saving would be given back to
travelers and shippers as a savings-
return to reduce immediately the
cost of transportation to the users.
Certificates of payment for trans
portation or freight would be ex
changeable for railroad bonds.
CO-OPERATION
Thus, the present owners would re
ceive money until paid for their
ownership; the travelers and ship
pers would get reduced rates and
ownership bonds.
With the principle of one vote
only for each citizen and no proxy
voting, with surplus-savings re
turned to the users, the railroads
would become instruments of serv
ice for the people.
This plan is more practical than
the political plan. But the people
are fed on politics by politicians.
They are taught to turn to the Gov
ernment rather than to themselves
to solve their problems, and conse
quently administration of the rail
roads in the interest of the people
seems then like a strange theory.
But it must eventually come. Not
the government but the people
should own the railroads.
THE PLIGHT OF THE FARMERS
The great mass of people in the
United States who earn their living
by performing useful services are in
a bad plight. The miner, the rail
roader, the factory worker live on
the brink of starvation. Their em
ployment is always doubtful; and
getting a living wage out of their
employer is a constant struggle.
The people in this country who have
abundance, and who enjoy all the
protection of the law and the pres
tige of position are the gamblers—
the people who buy the products of
labor at the lowest possible price for
the purpose of selling at the highest
price. The laws, the courts and
most of the machinery of govern
ment are all shaped up to protect
and promote gambling—commonly
called "business."
In this decay of industry the
farmer suffers along with the rest
He performs useful service. That is
the cause of his plight. W. C. Lans-
don, of the Farmers' Union, in the
educational lectures which he has
been delivering before farmers
groups in Nebraska, has brought out
some startling facts to show what
has happened to the farmer in the
United States. He said: "They say
I am a pessimist. But the man who
sees a house afire and turns in the
alarm is not a pessimist. He is only
taking a common sense precaution
to stop damage and destruction.
The fact is that agriculture was
never in such desperate straits."
From the Nebraska Union Farm,
we learn that Mr. Lansdon has
pointed out that when Nebraska was
admitted to statehood every farmer
in the state owned his land, and it
was not mortgaged. Now 40 per
cent of the farms of the state are
operated by tenants, and the farms
are mortgaged for $300,000,000.
The same condition exists in every
state in the union. In the United
States as a whole, about 40 per cent
of the farms are operated by ten
ants, and these farms are covered
with mortgages aggregating seven
billion dollars. The last census
showed an increase in this mort
gage indebtedness of 150 per cent.
In addition to the mortgages on
their farms, the farmers of this
country have about three billions of
other debts, making an indebtedness
of ten billions in all. This means
that the farmers, who owned their
farms sixty years ago, have now
lost title to 40 per cent of their land
and have "gone in the hole" ten
billion dollars. That is what their
toil has earned for them.
Into whose hands has this great
wealth gravitated? Into the hands
of gamblers. The bankers, the "in
vestors," the insurance companies
and the corporations are slowly but
steadily getting the farms away
from the farmers. The biggest
profit in owning land is not to farm
it, but to hold it for speculation, and
let some one else farm it. As the
shoe-maker now works with some
body else's machine so will the
farmer soon be tilling somebody
else's farm. The decay of an eco
nomic system is associated always
with this exploitation of the worker.
The important thing for the farm
er to learn is that he can not save the
situation by waxing patriotic, "back
CO-OPERATION 165
ing up Unele Sam," raising soldiers
for the next war, electing "good men"
to office, or by doing anything else
that compromises with the present
profit system and the government
that is controlled by it. It is all
a losing game—unless he too means
to go into gambling.
But something can be done. Be
sides producing food, the farmer is
in the strategic position to perform
the great social service. He can
realize that the profit-system is going
to pieces—is coming to an end—be
cause it does not work. And having
seen this, he can turn his face toward
the future and occupy himself in
building a new economic system
based on the motive of service in
stead of profits. When he does this
he will lead the world. And here and
there are encouraging evidences that
he is catching the vision.
"POTATOES DON'T GROW BY
THE POT"
There is an old adage to this ef
fect: When you want to cook a pot
of potatoes you have to go out and
get them.
Karl Marx and his disciples have
taught that the capitalist system
would go to smash of its own in
herent inefficiency. They were right.
It is going to pieces. European
capitalists know it, but the Ameri
cans have not yet found it out. Then
Marx and his followers have always
said that the workers would step in
and take charge of things and run
them. And that is where they were
wrong.
Some people have had the idea
that as soon as things go to pot ev
erything is then ready for the
workers to start the brew boiling,
and the new regime is here.
Well, I have an idea that if the
capitalist system in the United
States should go to smash, and we
should have a revolution, the work
ers might attempt to run things, but
before they had gone very far, about
the same people who are now run
ning things would be found in

166 CO-OPERATION CO-OPERATION 167
charge and we should have capital
ism again.
Potatoes do not grow by the pot.
If the workers in the United States
are ever going to play a large part
in running the affairs of this coun
try they will have to go out and
learn how. If they are going to boil
potatoes they will have to go out
and gather them. Merely being by
the pot when the fire blazes up and
the water begins to boil is not
enough.
If the working people are going
to run the affairs of any country
they must not only get experience
and training in management, admin
istration and what is called "busi
ness," but they must develop people
who can organize large affairs and
who have capacity and ability for
social statesmanship. Things are
now being administered—after a
fashion—but they are being done.
Food is produced, clothing is made
and trains run; and it is all under
capitalistic administration. When
the workers 'have learned to do it
better, that will be time enough for
them to try it. And when they have
learned to do it better, they will
naturally find themselves doing it;
and the Marxists will be wrong, for
nothing need go to smash.
But the workers will have to hur
ry up with their training, or there
will be trouble before they are
ready.
JOB CURSED THE DAY HE WAS
BORN
The most discouraging fact about
Co-operation in the United States is
that big business is not worried about
it. Over in Europe the profiteers
have been cursing Co-operation for
forty years; here they pay little at
tention to us. We will never get any
where until profiteering business gets
excited and starts to blackguard us.
Then we will go forward.
Once upon a time an old clergyman
who had labored faithfully in one
church for forty years was given a
vacation, and a fund was raised to
pay for a trip to Europe with his
good wife. They set sail. A great
storm arose. The wind blew and the
billows rolled. The ship was tossed
and beaten by the waves. With tre
pidation the pious man sought the
captain and said, "Do you think there
is any danger of our being lost,
captain?" The captain replied, "Do
you .see those sailors forward there?
Listen; hear 'em swear ? Well, when
they stop swearing and begin to pray,
there is danger; but so long as they
keep on cursing you are safe."
All through the stormy night the
two pious souls remained awake.
Now and then the parson's wife would
say, "Father dear, do you think the
vessel is sinking?" And the old
gentleman would open the cabin door
and eagerly Jiisten to the voices for
ward. Then he would softly close
the door and with a sigh of relief ex
claim, "Thank God, they are still
cursing."
That is what we need. We need
to get the Co-operative Movement
into such shape that we can open the
store door and listen to the voices of
the tradesmen up the street and ex
claim, like the good parson, "Thank
God, they are cursing at last."
J. P. W.
THE CONGRESS
All persons interested in the pro
motion of the Co-operative Move
ment in the United States are invited
to attend the Third Co-operative
Congress at Chicago, October 26, 27
and 28. Societies which are mem
bers of The Co-operative League
will send delegates. Other organi
zations have been invited to send
fraternal delegates.
The keynote of this Congress will
be: How to unite all of the Co
operative Movement in this country
into a solid body for united action
and mutual protection. This is a
task well worth undertaking for it
means not only the advancement of
Co-operation but the protection of
the working people as well.
SEEN HERE AND THERE
RURAL CREDITS—CO-OPERATIVE BANKING AND THE U. S.
GOVERNMENT
It is often asked why the govern
ment of the United States does not
encourage co-operative banking to
help the poor farmers as have the
governments of Germany, Denmark
and India. There is some history on
this subject which is illuminating.
At the First American Co-operative
Congress in Springfield, Illinois, in
1918, Charles O. Boring reported the
experience of a committee on Co
operation in attempting to get a hear
ing before Congress in 1911. "Why
did we not succeed? Simply because
the trusts were there in force; they
had moved upon the House and the
Senate, and they prevailed."
Some illuminating information is
to be found in two old documents re
posing among the musty archives in
Washington. They are "Compilations
on Agricultural Credit Banks," Gov
ernment Printing Office, Washington,
1912; and a Majority Report," sixty-
third Senate, Document No. 261,
Part I.
In 1921, Joel Henry Greene publish
ed in "The Freeman" (March 16th)
the gist of the incidents relating to
the government's motions on behalf
of co-operative banking as revealed
by these documents. It is interest
ing history.
David Lubin gave the best years
of his life to promoting co-operative
organization among the farmers. He
labored in the United States until he
became disheartened and then went
to Europe and established his head
quarters in Rome. For many years
David Lubin tried earnestly to get
the truth about the necessity for co
operative rural credit before the
American people and their Congress.
He accurately predicted our present
unfortunate situation if such rural
credit was denied. When Mr. Lubin's
repeated appeals could be shelved no
longer, President Taft sent his Ameri
can Commission, appointed through
the governors of the States to Eu
rope to study the problem. In his
letter accompanying the findings of
this commission addressed to the gov
ernors of the States Mr. Taft said:
"A study of these reports and the recom
mendations of Ambassador Herrick which
I am sending you, convinces me of the adap
tability to American conditions of the co
operative credit-plan as set forth in the
organization of the Raiffeisen banks in Ger
many . . . We must establish a credit-
system of, for and by the farmers, of the
United States. It were better, otherwise,
not to consider the matter at all ... Their
establishment is generally a matter for
State legislation and encouragement, their
organization and management are wonder
fully simple, and the experience of the Eu
ropean countries shows that their success is
practically inevitable where the environ
ment is congenial to their growth and where
proper laws are passed for their conduct."
Then the American Bankers' As
sociation immediately got busy and
sent their own commission to Europe,
in advance of Mr. Taft's, to head off
the adoption of any scheme of co
operative rural credit. The bankers
met Ambassador Herrick and Mr. Lu
bin in Paris in a conference which
lasted nearly a whole week. Their
discussions make interesting reading
just now. The bankers wanted
"mortgage credit-banks" to be set up
by bankers. Mr. Lubin strenuously
opposed this demand and called at
tention to the fact that "the move
ment in the early 'eighties for mort
gage-banks by bankers, led to dis
astrous results." He quoted from
Mr. Edward F. Adams' "Sound Cur
rency" that: "loans were largely spec
ulative and methods deceptive and at
times fraudulent." The bankers had
depended on assistance from Ambas
sador Herrick, inasmuch as he had
been president of the American Bank
ers' Association, also Governor of
Ohio, and was himself possessed of
large banking-interests. "Governor
Herrick," it is recorded, "listened at
tentively to both sidesof the question.

168 CO-OPERATION CO-OPERATION 169
On being asked for his opinion, he
said he preferred to defer it for his
Report to the Administration, which
he was about to draw up; neverthe
less, he unhesitatingly expressed him
self strongly in favor of the proposed
investigation by the Select Committee
in the European countries."
Conservative bankers have been
knocking Mr. Herrick ever since for
not playing the game on that occa
sion in true banker's style. In spite
of the great number of able, interest
ed financiers who accompanied Mr.
Taft's commission in order to ham
string it, only six of the sixty-one
commissioners made a minority-re
port against the Raiffeisen system of
rural credit. The grounds for their
opposition are evident when their oc
cupations, such as banker, cotton-
manufacturer, lawyer-farmer, etc.,
are known. A great newspaper
"drive" was promptly ordered by the'
bankers, assisted by Boards of Trade
and similar financial interests, and the
report of the commission was smoth
The Associated Grange Ware
house is the Co-operative Wholesale
of the State of Washington. It sup
plies some ninety stores. Until re
cently it 'had been buying soap from
a concern in Portland, Oregon, and
was doing a pretty big trade in soap
—about a hundred cases a week.
The orders kept increasing, and
the private stores began to see a
menace in this growing Co-opera
tive Movement. Some of them com
plained to the soap manufacturers
in Portland; and suddenly, without
warning, the orders of the co-opera
tive Grange Warehouse were can
celled. The manager took a hasty
trip to Portland and thought he had
adjusted the matter, when again the
orders were cancelled. This time
he called on the president of the pri
vate soap factory, who informed
him that the Buyers' Association of
Portland had threatened to stop all
purchases if the soap company con
A STORY IN SOAP
ered and its effect killed. Mr. Taft,
after that, whenever he had a chance
gave the farmers a slap so that there
should be no question as to his atti
tude.
That was the end of the U. S. gov
ernments' interest i n co-operative'
banking. It will probably be re
vived again when the farmers' plight
becomes so desperate that they are
not producing "enough material to
keep the wheels of speculation run
ning full speed." Then something
will have to be done. Some loud-
voiced pompous politician will thun
der forth his demands that "measures
must be taken to revive our declining
husbandry." This will happen when
the area of untilled land has still
more increased and the rural popula
tion has still more decreased and the
peasant farmers have become hungry
and ugly. Then we .shall get legisla
tion authorizing co-operative bank
ing. When things get bad enough,
good results will arrive.
tinued to do business with the Co
operative Wholesale. The Grange
Warehouse found itself effectively
boycotted; it could not buy soap.
Years ago the C. W. S. of England
was forced to manufacture their
own soap through the "Sunlight
Soap" boycott. Now in America,
the same condition has arisen.
The capital of the Grange Whole
sale was very limited. They could
not buy or build a factory, but they
could engage a chemist to analyze
the soaps on the market and pro
duce a better soap. This they did.
They then found a small soap manu
facturer who agreed to make soap
exclusively for the co-operative
wholesale. Thus the "bleauer
White" brand was put on the mar
ket. The manager and a couple of
directors went about telling the
story of the boycott, and of their
venture in production for them
selves, to the members of the
Grange co-operative stores. Loyal
ty was urged. The people were
called upon to buy only their own
soap, and to buy lots of it, because
a contract for three hundred cases
a week to start with had to be made.
They responded so well that in a
few months the output of the fac
tory was increased to five hundred
cases per week.
Then the Portland private soap
factory woke up. They realized
they were losing some good orders,
and called at the co-operative office
in Seattle and offered all kinds of
inducements to get back the trade.
Mr. Goss, the co-operative manager
answered, "No, indeed, we like our
own soap better and can sell it
cheaper than yours."
The next thing that happened was
this: A few of the co-operative
stores had managers who were not
entirely converted to the co-opera
tive principle, and when the Port
land salesman came around offering
the old soap at 75 cents a case less,
they naturally bought the "bar
gain," and offered it to the Co-
operators.
Again the' educators had to go the
rounds beseeching the members to
remain loyal, to buy their own soap
even if the other was given away.
At last they saw the point. They
still see it, and refuse to buy any
thing but the "Gleaner White" brand,
and the unfaithful managers now
have on their hands dozens of
cases of "scab" soap which they
cannot even give away.
THE CO-OPERATIVE MOVEMENT IN AUSTRIA
By EMMY FREUNDLICH
Member of the Central Committee of the International Co-operative Alliance,
Member of the Austrian Parliament.
In a country, where we have every
day a changing value of exchange,
the progress of an economic organi
zation meets with serious obstacles.
It is not possible, for example, to keep
count of expenses. The value of in
come and outgo changes every day.
Nobody, who has real money in his
hands, can imagine the difficulty of
having money that is bad. In Aus
tria we' find that all that we have in
our economic life is changing and all
is every day altered in value. Every
month all that we need for living is
noted by a state department, and
when the figures of cost of living go
up, then all wages are raised in the
same percentage. Not only the wages
are changing from month to month,
also our cast of freights, our taxes
and all that is necessary for the work
of an economic organization changes
from week to week, often from day
to day. For all the value of our
capital is changing with the value of
the krone.
In any other country the co-opera
tive societies can go to their mem
bership and ask for more capital. If
we would do that in this way we
would never have capital enough, be
cause, when the capital came into our
treasury, the' kronen would have only
the half of their value.
We must ask that our membership
spend all the time more money at
their co-operative stores, because all
that we have is growing higher in
price and all the necessary money can
not come from our membership. That
our capital is of small value, is not
the fault of our Movement. That
came out of the bad circumstances
in which our state is put by the peace
treaty. Why, we ask, must the Co
operative Movement spend its power
and lose its money for this reason?
It is necessary that we shall be able
to buy for our members, because
without our distribution the consum
ers in Austria have not enough to
eat. What we have is not money, it is
only paper. We can not buy from
other countries. Now one pound of
bread costs 5,670 kronen and a pound

170 CO-OPERATION CO-OPERATION 171
of beef costs 15,000 kronen. A meal
in the restaurant of our wholesale
costs 5,000 kronen. It is inconceiv
able that the men who made the
"peace treaty" know what misery
they have brought upon the world.
In a short time we shall have a new
collapse and another revolution and
thousands of people will lose their
lives, if the situation is not changed.
There are many other difficulties
behind the evolution of our Move
ment. We have worked with all our
forces and we have had also the last
year good results. The figures in our
report are very high, and a foreign
The number of members has in
creased 14 per cent and the numjber
of stores 20 per cent during the year.
All the figures are higher than be
fore, but all that we note in Austrian
kronen does not represent the true
picture of our evolution. We do also
what all our private traders are do
ing, we have noted the figures also
in gold kronen. This shows a better
picture of the situation. But all that
can never show the correct picture,
because all is changing from day to
day.
It can be seen by these figures how
our economic situation works against
our normal evolution. All that we are
building and producing is torn down
by the enormous devaluation. We
can do what we like but we have not
the satisfaction of seeing that we
come forward. Our real economic
values are lost, and we must struggle
in all manners of ways only for life.
We must have more energy than other
people to save ourselves from starv
ing. We are living on the verge of
reader will find that the Austrian Co-
operators may seem rich, but nobody
must forget that all the figures are
only Austrian kronen.
All the co-operative societies that
are members of our entral Union
have had good results. But we have
not so many societies as we had be
fore, because we have united more
and more small societies to big ones.
We have only 97 co-operative so
cieties in our union and 52 societies
which are productive societies and
societies for house building and
credit. Their evolution is shown by
the following figures:
1914. 1920. 1921.
Number of co-operative societies which
reported .......................
96
103
97
Number of local stores..............
584
704
Shares of the members..............Kr, -. 3,105,065 16,532,365 107,213,836
Reserve funds ..................... 1,703,065 16,417,871 85,879,491
Net surplus-savings ................ 6,722,356 55,075,750 483,411,017
Turnover of goods.................. 43,068,851 1,821,130,750 10,388,278,304
Total profit and surplus-savings..... 6,722,356 44,035,573 986,121,877
Profit and savings-returns for the
members ....................... 1,379,698 36,727,433 153,300,562
Number of members................ 105,065
503,622
574,116
collapse that will destroy what we
have built. But from day to day
some of our power and some of our
economical reserve is lost; and we
fear that we will not have enough en
ergy to continue this struggle against
a fate which we do not deserve and
which we have had imposed upon us
by the war. The labor people get
nothing from our misery; but the
foreign capitalists get our shares of
stock and our factories for a cheap
price. All our shipbuilding and our
railway companies are in the hands
of English capitalists. The English
people themselves have unemploy
ment and suffering. That is the work
of capitalists in the whole world.
But we Co-operators can say that
we have done what we could do. De
spite all the misery, our Movement
comes forward. We are happy to
say that one of the strongest and
most substantial organizations in
Austria is our Co-operative Move
ment.
I
THIRD CO-OPERATIVE CONGRESS
The arrangements for the Chicago
Congress are going steadily forward.
The committees have about completed
their reports, which will furnish a
large amount of carefully digested
material for discussion. This will
be a working Congress, devoted to
solving the problems that confront
our American Movement.
Beginning with the July issue of
this magazine, we have published in
formation concerning the Chicago
Congress. The call to the Congress,
the program, the names of members
of committees, the place of meeting,
and general information have been
published.
No effort has been made to have
a large attendance, but every effort
has been made to have a full attend
ance of the earnest workers in the
field of Co-operation in this country.
The results of this Congress promise
to be far reaching for the good of
our Movement.
Organizations sending delegates
should send the names of their dele
gates to the Executive Board of The
League, 167 West 12th Street, New
York City. The Congress will con
vene at 10 a. m.
THE PLACE OF THE CONGRESS
The Third Congress of The League
will be held in the auditorium of the
Lexington Hotel, Michigan Boulevard
at 22nd Street, Chicago, October 26th,
27th and 28th. Arrangements have
been made with the hotel for special
convention rates, which will enable
delegates to live at the hotel where
the Congress takes place.
The special rates for delegates are
as follows:
Two in room, without bath, $1.50
per day each.
Two in room, with bath, $2.50 per
day each.
One in room, without bath, 2.00
and $2.50 per day.
NEWS AND COMMENT
One in room, with bath. $3.00,
$3.50 and $4.00 per day.
Delegates should send in their res
ervations to the Lexington Hotel as
early as possible, stating that they
are attending the Congress of The
League, in order to obtain special
rates.
RUSSIAN CENTRAL UNION SEND
ING DELEGATE
The Russian Co-operators have
elected a delegate to represent them
at the Third American Co-operative
Congress. A cablegram has been re
ceived by The Co-operative League
from Moscow which translated reads
as follows:
Russian Consumers' Co-operatives elected
Janson delegate to the Congress of the Co
operative League, 26 October.
(Signed) PRIGARIN,
for the Board of Directors,
of Centrosoyus.
We understand that Mr. Janson is
now on his way from Chita, Siberia.
NORTHERN STATES CO-OPERA
TIVE LEAGUE
The Northern States Co-operative
League, the District League of Min
nesota, Michigan and Wisconsin, an
nounces a gratifying increase in its
membership. At the last meeting of
the Executive Board, five co-opera
tive societies made application to join
the federation. The membership of
the district league comprises 44 indi
vidual members, in addition to the
eleven co-operatives affiliated. Se-
veri Alanne, the Secretary of the
Northern States League, has been
making a tour of the territory cov
ered by the League. It is planned
to tour Cedric Long, Technical Ad
viser of The Co-operative League,
through the district in October, for
three weeks.
The Northern States League re
cently became affiliated with The Co
operative League, and will have re
presentatives at the Chicago Con
gress.

172
The following call has been sent
out for its convention:
CALL
TO THE SECOND CONVENTION OF
THE NORTHERN STATES-CO-OPERA
TIVE LEAGUE,
All co-operative societies affiliat
ed with the Northern States' Co-op
erative League are notified that
the second convention of the League
will be held in the new building of
the Franklin Co-operative Creamery
Association, 2108 Washington Ave
nue, N., Minneapolis, Minn., on the
22nd and 23d days of October.
Each constituent society shall be en
titled to -be represented by at least
one delegate and shall be entitled to
send one additional delegate for each
300 members above the first SOO or
major fraction thereof.
The invitation to send delegates
to the convention has been extended
to the Wisconsin, Michigan and Il
linois States Federations of Labor,
as well as to the Trades' and Labor
Assemblies of St. Paul and Minne
apolis. The Minnesota State Feder
ation of Labor has already applied
for membership in the League and
will send delegates.
There is every indication that the
convention will be well attended and
that business of great importance
for the Co-operative Movement in
the United States will be transacted.
Dr. Warbasse, president of The
Co-operative League (the national
organization) will be present.
Already eleven societies, with an
aggregate membership of over 10,-
000, have affiliated with the League
and several more societies are ex
pected to join it before the conven
tion, and send delegates.
All delegates should be in Min
neapolis early enough to present
their credentials at 9 o'clock in the
morning on Sunday, October 22, as
the convention will be formally
opened at 10 o'clock.
THE NORTHERN STATES CO-OPERA
TIVE LEAGUE.
S. ALANNE, Secretary.
Box 147, Superior, Wis.
CO-OPERATION
THE LEAGUE ENDORSED BY
LABOR
The following resolution, presented
by David Hanly of the Trades and
Labor Council of Nashville, Tennes
see, was adopted at the Twenty-Sixth
Annual Convention of the Tennessee
Federation of Labor, endorsing the
work of The Co-operative League:
"Whereas, We realize that organiz
ing our capital and purchasing power
as consumers through the Co-opera
tive Movement, as we have organized
our earning power through the Labor
Movement, is the only means where
by Labor can ever hope to break that
vicious circle whereby capital absorbs
every material advantage gained by
Labor by advancing the cost of living
as fast as our earning power in
creases ; and
"Whereas, We realize one of the
greatest needs of the workers today
in their conflict with economic injus
tice is education in the Co-operative
Movement; and
"Whereas, There has been formed
an organization known as The Co
operative League of America for that
purpose, whose object is to promote
the cause of Co-operation whereby
mutual aid shall be developed among
men in place of antagonism, to spread
the knowledge of the history, princi
ples and methods through co-opera
tive education of the masses, to en
courage the formation of co-oprative
enterprises along lines proven by
years of experience in this country
and abroad, and to further and de
velop the union of all true co-opera
tive societies for the purpose of dis
trict, national and international fed
eration; and
"Whereas, After earful investiga
tion we find that The Co-operative
League of America is endeavoring to
fulfill these objects in every possible
way and without ulterior motives of
any kind, has no connection with or
interest in any commercial enterprise,
co-operative or otherwise, but is con
ducted solely for the purpose of teach
ing the principles and practices of
Rochdale Co-operation; and
ft
"Whereas, We believe that an or
ganization of this character and for
this purpose fills a real need in this
country and will be instrumental in
saving many thousands of dollars of
the working people's money annually
by teaching the true principles and
sound practices to managers, officers
and members of societies and the
workers in general, the lack of which
has been with the resulting loss of.
untold thousands of dollars of labor's
hard-earned money; therefore, be it
"Resolved, That the Tennessee Fed
eration of Labor does hereby recog
nize and approve of the work of The
Co-operative League o f America,
which is endeavoring to bring about
co-operative unity, information and
education in this country, and fur
ther recommends that all groups of
workers contemplating the organiza
tion of co-operative enterprises are
investing their money in any enter
prise purporting to be co-operative
in form or principle, consult with the
officers of The Co-operative League of
America before doing ,so; and be it
further
"Resolved, That the officrs of the
Tennessee State Federation of Labor
be hereby instructed to take up the
study of consumers' Co-operation and
lend their aid and assistance in fur
thering its development Wherever
and whenever possible to do so."
AMERICAN LABOR PARTY'S
ENDORSEMENT
The joint convention for independ
ent political action by labor, which
took place in New York City, July
16th, and which resulted in the for
mation of the American Labor Party,
passed a resolution giving its hearty
endorsement to the Co-operative
Movement. The resolution is as fol
lows :
"Whereas, The workers of America
have created powerful trade unions
to protect their interests as producers,
and "Whereas, The real wages are de
termined by purchasing power which
vitally affects the interests of the
CO-OPERATION 173
workers in their capacity as consum
ers, and
"Whereas, speculators, middlemen,
and all handlers who render no useful
service, tend to depress the purchas
ing power of wages by exploiting the
workers at the point of consumption,
and "Resolved, That this convention
gives its hearty endorsement to the
Co-operative Movement and urges
our members and supporters to af
filiate with this important arm of the
Labor Movement."
FRANKLIN CREAMERY GROWS
The sales of dairy products to the
thirty thousand members and pa
trons of the Franklin Co-operative
Creamery Association of Minneapo
lis, during the period January to
August, 1922, amounted to $1,041,-
274. Although the co-operative
creamery has cut the price of milk
down to almost cost, a 7 per cent
savings return was made for the
consumers, most of which will be re
turned to them.
The co-operative creamery now
has more than five thousand share
holders, representing all classes and
creeds. It serves twenty-five thou
sand families which are not mem
bers of the association. The plant
of the creamery is taxed to the limit
to supply the needs of the co-opera
tive patrons. Eighty-five wagons and
trucks are employed, as against
eighteen used during the first
month's business, in March, 1921.
A huge plant is now in process of
construction, with a capacity that
will double that of the present plant.
As soon as the building is ready, the
co-operative creamery will be able
to supply all sections of Minneapo
lis. The success of the Franklin Co
operative Creamery is in large meas
ure due to its systematic educational
work. A monthly magazine, "The
Minneapolis Co-operator," is pub
lished by the association. Bundle
lots of CO-OPERATION are distributed
every month. Recently, the Labor
Day parade in Minneapolis had an

174 CO-OPERATION
impressive co-operative section, con
sisting of members and employees
of the co-operative. Edward Solem,
the manager of the association, de
livered an address on Co-operation,
at the Labor Day meeting. The
Franklin Creamery strictly adheres
to the Rochdale Plan, and is affiliat
ed with the Co-operative League.
CO-OPERATIVES CO-OPERATE
WITH CLEVELAND DAIRY
The City Co-operative Dairy of
Cleveland, Ohio, continues to expand.
It now has 1,300 members. At a re
cent meeting, one of the speakers
was Edward Solem of the Franklin
Co-operative Dairy of Minneapolis.
The manager's report to the mem
bers showed that Mr. Solem had
brought with him $6,000 from the
Franklin Creamery as a loan to the
Cleveland organization. This demon
strates the splendid spirit of the
Minneapolis society as well as its
sound financial condition.
It will be interesting to recall that
when the Cleveland workers decided
to organize a co-operative dairy they
wired The League. The League wired
Mr. Arness, of the Franklin Dairy to
go to Cleveland and help them or
ganize. The Franklin Dairy spared
both their manager, Mr. Solem, and
Mr. Arness to go to Cleveland and
help in that city. Mr. Arness is
working hard to make the dairy a
success.
It is a noteworthy sign of progress
that the Co-operative Movement has
reached a point in this country at
which aid is extended from one co
operative .society to another, and that
a central national organization serves
at the intermediary through which
mutual aid, intercourse and under
stand among societies are made pos
sible. Instances of this co-operation
among co-operatives are multiplying.
They are signs that we are moving
on.
SOUND METHODS SAVE
CLARINDA
The co-operative store operated by
the Farmers' Union at Clarinda, Iowa,
had made some bad mistakes—poor
management, over-buying, credit. It
had a deficit of $3,000 in 1919. The
business of 1920 and 1921 increased
the indebtedness $5,500. At the be
ginning of 1920 it owed the local bank
about $3,500 and wholesale houses
$2,500. Then they decided to do it
right. Good management was es
tablished. The members were made
loyal. Buying was improved so that
the turnover in the grocery stock was
fourteen times during 1921. The pol
icy of small stock of quickly salable
goods was adopted. A strictly cash
business was established. Now the
society has all its debts paid, has no
accounts receivable, and has a surplus
of $2,500 in the bank. This shows
that the way to save a failing society
is to adopt sound methods.
TAYLOR SPRINGS MINERS'
CO-OPERATION GROWS
BECAUSE OF STRIKE
The co-operative society at Taylor
Springs, Illinois, reports a remark
able increase in membership, due to
the miners' strike. Taylor Springs
is a typical little mining town, with
a population consisting of Slavs,
Italians, Irish and other foreign na
tionalities. The co-operative had a
very poor start. A bad manager,
credit business, lack of educational
and social activities brought the so
ciety to a standstill. It seemed that
it would be imposible to get another
member to join, or to get the share
holders to patronize their store.
A new, live manager was secured
w'ho rectified the mistakes of the old
manager. An effort was made to do
something in an educational way by
having a speaker of The League ad
dress a meeting. But the meeting
was poorly attended, and no apparent
progress was made.
Then came the coal strike and prac
tically everybody in Taylor Springs
was out of employment. One would
expect that the society would be hard
hit by this condition. Instead, the
membership took an immediate jump.
Whereas there had been only 66 mem
bers in a town with 200 families, the
strike resulted in 60 new members
joining the society. Apparently, the
striking miners had time on their
hands to do some thinking, "and the
result was a stream of applications
for membership, each applicant sub
scribing $25.00 for share capital. So
many applications were received that
it became necessary to apply to the
Secretary of State for permission to
increase the capital stock of the so
ciety.
FIFTY PER CENT SAVINGS AT
ROSEDALE
On the outskirts of Reading, Penn
sylvania, there is a little co-operative
society known as the Rosedale Co
operative Association that has been
rendering a great service to its mem
bership. With a capital stock of only
$2,273, the co-operative store was
able to do a business of $13,529 dur
ing the months of April, May and
June, 1922, on which a substantial
saving of $1,164 was made. This
saving represents a return of over
50 per cent on the capital subscribed.
From the time of its inception, in
1919, the co-operative has saved
over $8,000 for its membership, or
between .three and four times the
amount of capital invested in the en
terprise.
This society owns its own building.
Its store is well patronized in the vil
lage of Temple, where it is located.
Members of the society are to be
found in the forefront of every move
ment for the elimination of profit.
Through the efforts of the Co-opera
tors, a Labor Lyceum was organized.
This group is affiliated with The Co
operative League.
THE BROOTEN CO-OPERATOR
Brooton is a small town in a farm
ing community in Minnesota. The
Farmers' Co-operative l Mercantile
Company has a store there. It .sells
groceries, hardware, dry goods, clo
thing, shoes, crockery, floor cover
ings, and most every thing else. The
society publishes a monthly paper,
"The Brooten Co-operator," which
shows that they have a good co-opera
tive spirit at Brooten. This paper is
interesting; it contains live local
CO-OPERATION 175
news; and it encourages interest and
loyalty to the store. The editor, Frede
Westergaard, is the manager of the
store. Every society should have
a monthly paper. We commend "The
Brooten Co-operator" as a model.
COEUR D'ALENE KNOWS CAUSE
OF SUCCESS
The Co-operative Society at Coeur
d'Alene, Idaho, made savings of al
most 50 per cent of the capital invest
ed last year. The turnover of this
grocery store was $70,000, on which
savings-returns of more than $2,000
were made for members. This so
ciety has a surplus of $6,000, and car
ries a stock valued at $10,000.
The report of this society asks the
question "Why is this co-operative
store a success while so many fail?"
and answers its question as follows:
"Because the .stockholders are real
co-operatives. Co-operation is the
next step in human endeavor, in civil
ization. It is not necessarily a means
to greater financial gains, though
that naturally follows. It is and must
be the future basis of all exchange
between man and man."
THE FARMERS UNION
It is interesting to learn from
President Barrett of that organiza
tion that the Farmers' Union is
handling more live stock than any
other concern in the country. At
Salina, Kansas, is the finest office
building between Kansas City and
Denver. It is the building of the
Kansas Farmers' Union Fire Insur
ance Company. The yearly turn
over of the Farmers' Union, includ
ing that of the insurance and bank
ing departments, is over a billion
dollars.
GERMAN CONSUMERS TAKE
OVER GOVERNMENT WORKS
A rather unique combination of
interests has been created in the
clothing industry in Germany in the
formation of the Saxon Clothing
Works. This enterprise is started
with a capital of 10,000,000 marks.
Of this, 8,000,000 marks has been

,
176 CO-OPERATION
put in by the Wholesale of the Ger
man Consumers Societies. The
tailors' union has put in 1,000,000
marks, and the state bank of Sax
ony 1,000,000 marks. This enterprise
will take over the state clothing fac
tory which used to supply clothing,
uniforms and shoes for the Saxon
department of the ^ermany army.
The plant is a large one and well
equipped. A lease for thirty years
has been taken on the buildings;
the tools, machinery and adminis
trative apparatus have been bought
outright. This adds another in
stance of the organized consumers
taking over the factories of a politi
cal government.
BACKWARD BRITISH STEP
The Co-operators of Germany
are moving forward to take from the
hands of government as many func
tions as they can master. A sad
contrast to this is the opposite ten
dency in Great Britain. It is a dis
couraging spectacle for Co-opera
tors to see English societies praying
the political government to take
over the enterprises already in the
consumers' hands. With much re
gret Co-operators should witness,
for example, the directors of the so
ciety of Colne, England, making an
effort to induce the town authori
ties to take over their department of
medical supplies. "We believe this
obligation belongs more to the town
council than to our committee, and
we are making an effort to get the
council to accept our stock, and to
apply a scheme for the loan of these
very useful articles to the public."
"The Producer," which is an influ
ential British co-operative maga
zine, approves of this course. It
says: "In the old days co-operative
societies provided evening classes,
libraries, and many of the things
now recognized as the work of mu
nicipal education." It expresses
the belief that this course will be
followed by other societies.
Many British societies have these
sick - room appliances (fountain
syringes, ice bags, bed pans, ther
mometers, wheel chairs, crutches,
etc.) which they loan to their mem
bers at a very small charge. Now
they would give over this function
to the political authorities. There is
a strong movement also advocating
that milk distribution and the coal
supply follow the same course.
This is one of the most discourag
ing manifestations to be seen in the
British Movement. It is very sig
nificant.
The time has come, in the midst
of the decay of the profit-system
and in the presence of the sterility
of political government, for Co-oper
ators frankly and boldly to take the
position that the system of social or
ganization which they represent can
perform all of the functions both
of profit-business and of political
government. No tincture of politi
cal stateism should dissuade us
from this course. We weaken our
force for righteousness when we di
gress from the straight path, and
especially when we yield what we
have created. The great task is the
building of a Co-operative Society
to take the place of the old society.
Co-operation is not a reform move
ment; it is a radical reorganization
of society.
THE FRENCH DISTRUST GOV
ERNMENT
At the last Congress of the French
Federation of Distributive Societies,
resolutions were passed calling for
the establishment, wherever pos
sible, of co-operative societies for
the supply of gas, electricity, water,
etc. This indicates that the French
Co-operators are getting away from
the idea of the socialists that the
political government must be called
upon to do these things.
THE CO-OPERATIVE THEATER
OF BERLIN
Berlin has a co-operative theater
organization known as Die Volks-
biihne, with a membership of 260,-
000. This artistic group, supported
and controlled by the theater-goers
themselves, has been meeting with
so much success that they find their
theater accommodating an audience
of 2,500 inadequate to meet their
requirements. Accordingly, they
have acquired another of the large
theaters of Berlin, and are remodel
ling it for performances in the fall.
In order to seat the large audiences
at special performances, it has been
necessary to engage the famous
Reinhard Theater, which holds
5,000 people at a time.
Barely twenty years ago, this co
operative organization started with
a membership of less than 300. The
object of the group was to give a
hearing to plays that were con
sidered too "radical" for the con
ventional stage. They had no thea
ter in the beginning, but rented any
show (house they could find for the
weekly performances they gave.
Some of the most preeminent the
atrical directors, artists and actors
threw themselves into the endeavor
to give expression to the best plays.
The People's Theater grew, until
nightly performances were given.
It was not long before the theater
ran afoul of the censor, who before
the revolution was on the lookout
for "unpatriotic" plays. In spite of
the attempt at suppression, the Peo
ple's Theater grew until it could af
ford to build its own playhouse, one
of the finest in Berlin. And now it
has outgrown this house, and is
forced to acquire a second theater.
Two-thirds of the theater is re
served for members who have sea
son tickets, and one-third of the
seats may be bought by the general
public. Subscribing members re
ceive tickets at lower rates than the
general public. An unusual feature
of this People's Theater is that the
Co-operators elect the Board of Di
rectors from their own membership,
and see to it that they have some of
the best dramatic critics and play
producers in Berlin. The technical
committees on repertory, etc., are
appointed by the directors who care
fully select the best experts. In this
manner, a quarter of a million thea-
CO-OPEKATION 177
ter-goejs of Berlin finance and con
trol their own artistic theater, in
the administration of which they
have some of the best artists in
Europe.
FRENCH CO-OPERATIVE BANK
OPENED
The marked financial growth of
the French co-operative consumers'
societies during the past few years
has resulted recently in the creation
of an independent co-operative bank
with members among the con
sumers' co-operatives. Previous to
that time, the bank was conducted
by a department of the French Co
operative Wholesale Society. The
growth of the business made it
necessary to create an independent
organization, which, however, is
controlled by the various local co
operative societies. Not only will
the new bank take care of the funds
of the wholesale society, and of the
local co-operatives, but it will give
financial assistance to needy co
operatives.
When the bank was first opened
as a part of the C. W. S., thirty-nine
local societies had organized 139
subsidiary deposit funds in which
1,807,000 francs were accumulated
for deposit in the central bank.
At the end of 1921, the number of
subsidiary funds of the local socie
ties had grown to 385, and the capi
tal to 16,287,000 francs. By April
30, 1922, there were 27,000 ac
counts in the Co-operative Bank, in
cluding the Wholesale's deposits, re
tail society deposits, and individual
banking accounts. Deposits of 61,-
184,000 francs were on hand. The
turnover of the bank during the fi
nancial year 1921 amounted to over
one billion francs.
The independent co-operative
bank was created in May, 1922,
shares being owned by the whole
sale and retail societies. The capi
tal of the bank is to be used for
granting credits to the wholesale
society and retail co-operatives af
filiated with the national federation,
for discounting bills drawn by co-

178 CO-OPERATION CO-OPERATION 179
operative societies, and for granting
loans on securities and advances on
commodities.
The by-laws of the new bank pro
vide for the payment of 6 per cent
interest on paid up capital. The
remainder of the profits are divided
into two parts. One will go into a
reserve fund. The other will be
distributed among the member so
cieties in proportion to the interest
they have had to pay on credits pro
vided by the bank; in other words,
to the borrowers or consumers of
the funds.
CONGRESS OF CANADIAN CO
OPERATIVE UNION
The Co-operative Union of Cana
da held it annual congress at Woodstock,
Ontario, September 19 and
20. At the close of the Canadian
Co-operative Congress, the annual
Conference of the Ontario Societies
took place.
Co-operative societies, labor
unions and interested individuals
were represented at the Canadian
congress. The Co-operative Union
of Canada corresponds to The Co
operative League of the U. S. A.
publisher or through The Co-opera
tive League.
AN ENGLISH SURVEY
A thoughtful and observing Brit
ish journalist of the "Daily News"
staff, Mr. George A. Greenwood,
has written a book entitled "Eng
land To-day." He says the com
munist movement has little to offer
but the letting off of steam. The
revolution does not come. He re
gards the Co-operative Movement
as the most hopeful creation of the
working people. "Their leaders,"
he says, "quiet, painstaking, able,
though in many cases self-educated,
are engaged in laying the founda
tions—and laying them soundly—
of a Co-operative Commonwealth.
Voluntary Co-operation in England
is going down to the economic foun
dation, and on the basis of its ex
tension during the past five years
it will, in 1931, have enrolled the
head of every household in the coun
try." The Millgate Monthly quotes
the author as saying, "Because of
all these things the sensible Eng
lishmen will decline to drink the cup
of despair."
NEW BOOK ON CO-OPERATION CONGRESS OF GERMAN UNION
The American edition of Profes
sor Charles Gide's book, "Con
sumers' Co-operative Societies" will
be off the press October 20. This
valuable book has Ihitherto been
available in only the original
French, and a British edition. The
American edition was prepared by
Cedric Long, with all figures brought
up to 1922. American examples are
cited throughout, and the book con
tains a chapter on the Co-operative
Movement in the United States.
The author, Charles Gide, is Pro
fessor of Political Economy in the
Faculty of Laws, University of Paris,
and is one of the most prominent
figures in the French Co-operative
Movement.
Tihe American edition is published
by Alfred A. Knopf, New York,
contains 304 pages, and sells for
$3.00. It may be obtained from the
The 19th Congress of the Central
Federation of German Distributive
Co-operative Societies (Zentral-Ver-
band deutscher Konsumvereine) and
the 28th General Meeting of its
Wholesale Society (Grosseinkauf s-
gesellschaft deutscher Konsumver
eine) were iheld at Eisenach from
19 to 22 June.
The annual report for the year 1922
shows the development of the Cen
tral Federation and the Wholesale So
ciety from the year 1903, when the
Central Federation was founded, to
31 December, 1921. The number of
.societies affiliated to the Federation
rose during that period from 666,
with 573,085 members, to 1,337, with
2,834,043 members. Their turnover
rose from 131,786,107 marks or an
average of 230 marks per member to
5,182,748,988 marks or 1,829 marks
per member, their own production
from 12,708,668 marks or 22 marks
per member to 737,131,449 marks or
260 marks per member. During the
same period the staff employed by
the societies increased more than five
fold, from 6,440 to 37,545.
The growth of the Wholesale So
ciety from 1903 to 1921 is shown by
the increase of the number of work
ers employed from 197 to 3,139. The
number of societies affiliated to the
Wholesale Society increased from
305 to 1,026. The value of their trans
actions with the Wholesale increased
from 26,445,889 marks to 2,406,982,-
699 marks. The average patronage
per society increased from 86,708
marks to 228,835.
Of the total value of transactions
for 1921, 234,784,773 marks, or 228,-
835 marks per society, represents the
value of the society's own production.
The Publishing Society of German
Distributive Co-operative Societies,
which employed 8 persons in 1903,
employed 665 on 1 January, 1922, and
has become one of the largest publish
ing businesses in Germany. It has
677 affiliated societies and its turn
over has risen from 186,309 marks
in 1903 to 41,955,899 marks in 1921.
The congress was strongly in favor
of preserving the independence of the
Co-operative Movement and drawing
only upon the resources of the or
ganized consumer. It refused to ap
prove to any resort to accepting fi
nancial assistance from the state or
municipalities. All that the congress
was willing to ask from the state was
the repealing of old laws and the en
actment of new laws that would give
the Co-operators only an equal chance
with profit business. Finally the con
gress demanded that the government
should enact legislation for the pro
tection of the consumer against the
influence exercised by certain large
industrial combinations on prices and
their boycott of the wholesale so
ciety. The "Tarifamt" is a joint
committee, consisting of five repre
sentatives of the central federation
of consumers' societies and five re
presentatives of the trade organiza
tions of the workers, whose duty it
is to secure the observance of labor
contracts and settle differences aris
ing out of them. After hearing its re
port the congress asserted that it
should be the duty and desire of co
operative organizations to serve as
models to other employers in the reg
ulation of wages and working con
ditions. On the other hand it drew
the attention of trade unions both to
the goodwill, of which evidence had
been so frequently given by the co
operative societies, and to the com
pulsion upon them to compete with
private undertakings, and therefore
requested them to refrain under pres
ent economic conditions from de
mands involving too heavy sacrifices,
and to try to obtain for workers in
private undertakings the benefits in
regard to health and safety condi
tions, holidays, pensions, etc., already
enjoyed by the employees of co-opera
tive undertakings.
BELGIAN CONGRESS
In the Belgian Annual Convention
held at Liege, three questions of
importance were discussed. These
were of much interest to the Move
ment. The congress recommended
the establishment of branches in
the country for the sale of special
products necessary for the farmer.
It considered the establishment of
an intensive program of propagan
da and education among the wom
en.
The most exciting question was
that in which was debated the ques
tion of centralization versus decen
tralization—whether a single na
tional co-operative society with
branches was desirable or whether
the present system of federation
with independent local societies
should be maintained. The con
gress decided to appoint a commis
sion which should discuss this ques
tion thoroughly and make a later re
port.

1 'ill
180 CO-OPERATION
VILLA GROVE OWES MUCH TO
ASSOCIATED MAGAZINE
We find the Associated Magazine service
of the League is a great benefit to our
society for the reason that the general in
formation contained in it relating to the
doings of other societies puts "pep" in our
membership and makes them ambitious to
do as well or better.
I could not say just how long we have
had to wait for results but we have had a
great gain in membership since January,
1921, when we started to use this service.
In regard to our plan of handling this serv
ice, I will say that there are about 500
families in this town. We get 600 copies
and make house to house delivery by car
rier, which saves four-fifths of the cost of
postage, and also saves the labor of ad
dressing copies. What copies are left are
mailed to farmers near here, except about
25 copies which are mailed to labor publica
tions and other societies.
Speaking for myself, I am strong for the
League's Associated Magazine service.
J. W. SNIDER, Secretary,
Villa Grove Co-operative Society.
Villa Grove, 111.
LIVINGSTON WANTS EDUCATION
The railway strike has been hard on us,
but we have played safe and will weather
the storm. However, one thing has demon
strated itself and that is we must do stren
uous educational work if we are to make
any kind of progress.
Will you please send me full particulars
concerning the Associated Magazine you is
sue? What have you got in educational
moving pictures?
JAMES D. GRAHAM, Pres.,
Yellowstone Co-operative Association.
Livingston, Mont.
ROCKFORD GAINING
Our society has voted to affiliate with The
Co-operative League and take our place
among the co-operatives of the United
States. So I am enclosing application and
check for membership fee, and also copy of
our by-laws. We cannot say that we are
as yet established beyond any doubt, as we
have to fight very hard for any ground we
can gain. However, we are hopeful that
we will ultimately come out on top.
We have a Ladies' Auxiliary which was
organized eighteen months ago, which is
doing good work. We will make an effort
to have a delegate at the congress in Chi
cago in October.
R. H. YOUNGBERG, Sec'y,
Rockford Co-operatives.
Rockford, 111.
LETTERS
A SOCIETY THAT QUIT
Your letter at hand as to our closing.
There are many obstacles in getting the
people to co-operate, especially now while
times are so tight; our greatest was that
we were unable to get our members to co
operate with the store as they should. . . .
Some were able to pay cash and refused to
do so because other merchants told them
untruths about our store and they never
investigated anything they heard—just
talked it to everybody instead of coming to
us to find out.
We had a few loyal members that did all
they could to help the store, but not
enough.
Our Board of Directors decided, after
looking through the matter, that it was bet
ter to close and give the money to stock
holders. We started four years ago with
thirteen hundred dollars, have already paid
out sixteen hundred in dividends, and will
have near on to two thousand dollars when
I get through selling out, so we are not in
a bad fix, after all, though we lost about
eight hundred dollars last year.
CAYCE CO-OPERATIVE STORE,
Cayce, S. C.
There is a reason for every failure. Why
did this society quit business?
Here is a pathetic case. A society started
four years ago with $1,600 and is now
selling out for $4,000, all for lack of edu
cation.
CHINESE GIVE THANKS FOR
BLESSINGS
Many thanks for your early reply and
kindness in sending us so many copies of
pamphlets and a list of books, some of which
we already have, and the others we are
going to order from you. Nww we send
herewith a money order for $1.00 in gold
to you for the subscription for CO-OPERA
TION.
Being so much grateful for your good
advice, which it seems to us may be surely
regarded as a guiding force like that of the
North star, we are going to adopt that prin
ciple as advised. But we are fain to inform
you that our society is as yet in a youth
stage and that we are now but applying
ourselves to the close of the work of propa
ganda, having not reached to the practical
field yet.
Hoping to get golden counsels and helps
from you very often, we are, etc.
The Ping Ming Co-operative Association.
Kiang-Wan, Shanghai, China.
T
CO-OPERATION
PUBLICATIONS
OF THE CO-OPERATIVE LEAGUE
HISTORICAL p«* Copy Per 100
3. Story of Co-operation . ................................................^ .10 $6.00
7. British Co-operative Movement ........................................ .10 6.00
10. A Baker and What He Baked (Belgian Movement)...................... .05
38. Co-operative Consumers' Movement in the United States............... .05 4.00
39. Consumers' Co-operative Societies in N. Y. State, (Published by Con
sumers' League) .................................................. .10
TECHNICAL
4. Hew to Start and Run a Rochdale Co-operative Society.................. .10 4.00
5. System of Store Records and Accounts................................ .50
6. A Model Constitution and By-Laws for a Co-operative Society........... .05 2.50
8. Co-operative Education. Duties of Educational Committee Defined..... .10
9. How to Start a Co-operative Wholesale................................ .10
27. Why Co-operative Stores Fail .............. .......................... .02 1.00
2. Co-operative Store Management ...................................... .10
14. How to Start and Run a Women's Guild................................ .05
16. How to Organize a District Co-operative League ........................ .10
MISCELLANEOUS
16. Model Co-op State Law ............................................... .10
17. Syllabus for Course of Lectures, with References and Bibliography.... .25
46. Producers' Co-operative Industries ................................... .10
11. Control of Industry by the People Through the Co-operative Movement... .10
12. Credit Union and Co-operative Store.................................. .05 1.75
34. Co-operative Movement (Yiddish) .................................... .02 1.25
43. Co-operative Housing ................................................. .10
42. Co-op Homes for Europe's Homeless ................................. .10
ONE-PAGE LEAFLETS
(One cent each; 50 cents per 100; $2.50 per 600; $4 per 1,000)
(1) Principles and Aims of The Co-operative League; (17) Do You Know why You Should Be a
Co-operator; (20) Why Loyalty Is Necessary; (21) Cost and Crime «f Credit; (22) A Real
Co-operator; (25) Resolutions Adopted by A. F. of L.; (26) Factory Workers Cc-cperate!;
(28) Do You Know About Co-operation in Europe?; (40) Have You a Committee on Educa
tion and Recreation?; (44) What Is the Co-operative Movement?; (45) Schools and
Stores; (47) A Man's Right to a Job; (48) Tips to Co-operators; (49) Think It Over.
MONTHLY PUBLICATIONS
CO-OPERATION—(In bundle lots, $7.50 per hundred). Subscription, per year......... .$1.00
HOME CO-OPERATOR, 4 pages ................................................ $1 per 100
INTERNATIONAL CO-OPERATIVE BULLETIN (Pub. by The I. C. A.)...... .per year, $1.50
BOOKS
The following books are recommended as containing the best discussions of the modern
Co-operative Movement. They may be ordered through The League:
Bubnoff, J. B.: The Co-operative Movement in Russia, 1917.......................... .$1.26
Faber, Harald: Co-operation in Danish Agriculture, 1918.............................. 2.76
Flanagan, J. A.: Wholesale Co-operation in Scotland, 1920............................ 2.00
Gebhard, Hannes: Co-operation in Finland, 1916...................................... 2.00
Gide, C.: Consumers' Co-operative Societies, 1921...................................... 2.50
Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, $2.00; paper
bound ........................................................................... .60
Howe, Fred C.: Denmark, a Co-operative Commonwealth, 1921......................... 2.00
Maxwell, Wm.: History of Co-operation in Scotland, 1910.............................. 2.00
Nicholson, Isa: Our Story ............................................................ .26
Powell, G. Harold: Co-operation in Agriculture. Macmillan ........................... 1.50
Redfern, Percy: The Story of the C. W. S............................................. 2.00
Redfern, Percy: The Consumers' Place in Society, 1920............................... 1.00
Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918...................... 1.50
Smith-Gordon: Co-operation in Many Lands, 1920..................................... 1.50
Sonnichsen, Albert: Consumers' Co-operation, 1919. Cloth bound, $1.75; paper bound... .76
Stolinsky, A.: The Co-operative Movement. In Yiddish................................ 1.00
Webb, B. and S.: The Consumers' Co-operative Movement, 1921........................ 5.00
Webb, Catherine: Industrial Co-operation, 1917 ...................................... 1.50
Woclf, Leonard: Co-operation and the Future of Industry ........................... 1.50
Woolf, L.: Socialism and Co-operation ............................................... 1.50
"The Co-operative Consumer" and "Co-operation," III (1917), VI (1920), VII (1921).... 1.25
Transactions of Second American Co-operative Convention, 1920....................... 1.00
The People's Year Bock, 1922...................................................... .76
(Ten cents postage should be added for books which cost more than $2.00, and five cents
for the smaller books.)

THE CO-OPERATIVE LEAGUE
(MeMber of The International Co-operative Alliance)
167 West 12th Street, New York
An educational organization (or teaching the history, principles, methods and aims of the
Co-operative Movement and for the promotion of Co-operation in the United States.
Join The League and thus help promote the educational work of the Co-operative
Movement. Individual Membership, $1.00 a year. Subscribe for CO-OPERATION,
the Monthly Magazine of The League, and keep in touch with the Movement.
•&^ ninr,nA B_ j » fnr. Subscription for CO-OPERATION, $1.00.
Enclosed find $........... lor Membe?sWp in The LEAGUE, $1.00.
Name...
Address.
Date....
Co-operative Central Exchange
Wholesale Grocers and Jobbers,
Bakers
We supply goods to Co-operattve Societies ONLY
We are owned and controlled by Co-operative
Societies.
We are organized to enable Co-operative Societies
to do collectively what they cannot do Indi
vidually.
Co-operative Central Exchange
Offices, Warehouses and Plant:
Winter Street and Ogden Ave.,
SUPERIOR, WIS.
Co-operators' ltd. Mutual Fire Insurance Co.
Is now writing Insurance In State of Wisconsin.
The Canadian Co-operator
Brantford, Ontario,
Canada
The ergan of the Canadian Co-opera
tive Movement, owned by and con
ducted tinder the auspices of The
Co-operative Union of Canada.
Published monthly;
7Sc per annum
MOVING PICTURES
and
Stereopticon Lectures
may be rented from
THE CO-OPERATIVE LEAGUE
167 West 12th St., New York City
1. "Soite Examples of English Co-operation."
Moving pictures of factory processes (two
reels) . ..............................-S5.00
S. "Co-operation In the United States."
With 63 Stereopticon views . .......... .(3.00
S. "The Co-operative Movement In Rnsssla."
With 36 colored Stereopticon views. ...$3.00
Co-operation in Scotland
In no part of the world la Co-operation further
developed, or more successfully practised than In
Scotland. If you wish to keep In touch, read
"The Scottish Co-operator"
(Published Weekly)
Subscription: Year 12 sh.; half-year, 6 sh.
Address, 119 Paisley Road,
Glasgow, Scotland
THE PRODUCER
Issued Monthly Price 3d.
If yon want to keep in touch with
business, organization, administra
tive affairs, and problems of the
British Co-operative Movement,
read THE PRODUCER.
Published by
Co-operative Wholesale Society, Inc.
1 Balloon Street, Manchester.
Post free 4 sh. 6d. a year.
The Trade and Technical Organ of British
Co-operation.
THE HOME CO-OPERATOR
A four-page magazine for
use in co-operative societies.
Issued monthly, in bundles, $1 per hundred.
Published by
The Co-operative League
Publishing Office, Willimantic, Conn. Al
bert Sonnichsen, Managing Eitor.
^^••^0**T*JB
(MOTION
A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in vol
untary association, produce and distribute for their own use the things they need
Published monthly by The Co-operative League, 167 West Twelfth Street, New York City,
J. P. Warbasse, Editor. Price, $1.00 a year. Ent«red as second class matter, December 19,
1917, at the Post Office at New York, N. Y., under the Act of March 3, 1879.
Vol. VIII, No. 11 NOVEMBER, 1922 10 Cento
"TRUST BUSTING"
AN EXPLODED CURE-ALL
How many of us remember the
rejoicing that went up from the
camp of the "progressives" and "lib
erals" in 1911 when the United States
Supreme Court sternly ordered the
Standard Oil Company to dissolve?
The Supreme Court, after profound
deliberation, decided that the Stan
dard Oil was a monopoly in restraint
of trade. It decreed that this indus
trial octopus should sever its various
tentacles and set them each up in
business for themselves. This decree
of the Supreme Court was hailed as
the panacea that would save the coun
try from the perils of monopoly. The
public was told that an energetic De
partment of Justice would sweep
them out of court dissolved into
harmless fragments. "Right think
ing people" exulted. The millennium
seemed to be at hand.
And now let the historian record
the facts which have followed in the
wake of the famous decision of the
Supreme Court. The Standard Oil
Company dissolved itself into almost
as many fragments as there are
states. Each company had its set
of high-salaried officers and its over
head expenses for maintaining offices.
But lo and behold, the several tenta
cles, obedient to some common urge,
refused to compete with each other.
The price of gasoline and other oil
VITAL ISSUES
products continued to rise. And now,
eleven years since the famous disso
lution, it is announced that the
"Standard Oil Group" has paid over
one billion dollars, $1,010,703,594, to
its lucky stockholders in cash divi
dends, since the potent decree of the
Supreme Court was issued.
This colossal figure does not by any
means represent all the toll extracted
from the public by the dissolved com
pany. For one of these struggling
little fragments, the Standard Oil
Company of New Jersey, not only
paid more than a quarter of a billion
dollars in cash dividends since 1911,
but it was able to pile up undistrib
uted profits of $592,021,632, "earned"
on a capital stock of $100,000,000.
The treasury of the company became
so swollen that it was decided in
October, 1922, to declare a 400 per
cent stock dividend to the sharehold
ers. This followed a stock dividend
of 2,900 per cent to the shareholders
of the S. O. Company of Indiana; a
2,625 per cent stock dividend of the
Waters Pierce Company, a 900 per
cent stock dividend of the Continen
tal, both Standard Oil subsidiaries;
a 400 per cent stock dividend of the
S. O. Company of New York, and va
rious other paltry dividends of three
or four hundred per cent to the stock
holders of other Standard Oil com
panies.
The United States is more in the
grip of this gigantic monopoly than

182 CO-OPERATION
ever before. Not a single one of the
hosts of those who once advocated
"trust busting" is on hand to observe
the phenomenal prosperity enjoyed
by this "dissolved" business. Trust
busting has turned out to be a boom
erang that apparently had no other
effect than hitting the public in the
neck.
May we urge upon the valiant re
formers who once advocated the use
of the "big stick" against monopolies,
that ownership and control by the
consumers of those industries essen
tial to the welfare of the consumers
is a surer hope of freeing the people
from the evils of monopoly? H. R.
CAN CO-OPERATION DEFEAT
MONOPOLIES?
At the last British Co-operative
Congress, Mr. G. Riddle submitted an
important paper, in which he exam
ined "The Financial Position of the
Co-operative Movement in Relation
to New Forms of Administration in
Retail Trade." In this paper Mr.
Riddle proved that the Co-operative
Movement in Great Britain is
stronger today than it was before the
war. He threw new light on the
way in which business is being mon
opolized by capitalistic trade com
panies. Not only is the business of
retail shop-keeping passing rapidly
into the hands of a few chain store
companies but great productive and
transport undertakings are also
owned and controlled by a few big
trusts and combines.
Can the Co-operative Movement
meet and defeat organized capital
ism? To this question Mr. Riddle an
swers, "Yes; Co-operation can over
come the powers opposed to it if its
members are wise enough to adopt a
sound financial policy." He proposes
that every society shall increase its
reserves, and so create a great fund
of collectively-owned capital upon
which no interest will be payable, and
which could be used to develop co
operative manufacture and agricul
ture, and thus enable Co-operators
to produce all they need themselves,
and so become wholly independent of
the whole capitalist world. Already
some European co-operatives are rec
ognizing these facts. They are pre
paring for the time when government
currency has come to naught and they
must produce everything for them
selves.
BE A CORPORATION
A plain, ordinary, two-legged man
pays tax on his total income. Out of
that income he has to feed, clothe and
house himself and keep himself fi
nanced and fit. After he has paid
his expenses and tax he usually has
nothing left. That is: there is no
profit. But the corporation does not
pay income tax. It earns all the in
come it can. Then it feeds, clothes
and houses itself, pays all kinds of
salaries to its officials, puts away a
good, big sum for depreciation, re
pairs, etc., and if there is anything
left, that remainder is taxed by the
government. In the case of a man,
the income is taxed. In the case of a
corporation, the income, minus all
possible expenses is taxed.
Basil M. Manley has called atten
tion to this fact and suggested that
each citizen should incorporate him
self! At least one thing is evident:
we have a government for corpora
tions rather than for human beings.
Just here is where Co-operators
can take advantage of a game that
was never intended for them. The
more of our capital we have in the
co-operative society and the more of
the business of life we carry on
through the society the more capital
do we keep out of the class which is
taxable as individual income. For
example, the savings-returns from
the co-operative society are not tax
able as income. But dividends from
any other corporation are taxable.
Pass this word along even to the rich
and advise them also to put their
money in the co-operatives!
ON HAVING FUN
Life is a serious business. Nobody
ever gets out of it alive. We should
have as much fun as we can while we
are at it.
An ancient notion has it that work
is the main business of life. It is no
such thing. Men work in order to get
the means to purchase happiness.
Twice happy is he who finds joy in
his work, for he earns his living while
at play. These souls are rare. But
all work should be of this nature; and
some day, when the world becomes
civilized, it will be.
In the mean time, while work is
drudgery, we can be having some fun
outside of working hours. The Eng
lish C. W. S. has a stodgy old motto:
"Work and wait." That is about the
same as saying, "Work and go to
sleep." It makes a negative use of
the leisure time. The spirit of the
Co-operative Movement would be bet
ter expressed in saying, "Work and
enjoy." The work should win some
thing. It should guarantee some
thing. The old work-and-pray busi
ness does not satisfy.
The Trade Union Movement takes
care of the man at work. The Co
operative Movement shows him how
to spend his earnings, and in doing
that it also shows him that man does
not live by bread alone. Trade union
ism helps the man to buy more leis
ure with his labor; Co-operation
shows him what to do with his leis
ure after he gets it. The "houses of
the people" and the recreation places
owned by co-operative societies,
where the members go to seek pure
joy, are beacons of great light. The
picnics, parties, dramatic clubs, sing
ing societies, orchestras and debat
ing societies are all in the legitimate
field of Co-operation.
The Co-operators in the mining dis
tricts of Wales are going in for lawn
tennis. Here is a game that has been
cultivated especially by the leisure
class. It is a great satisfaction to
see the young Welsh miner come
home from the pit at 4 o'clock, wash
up, put on a clean soft shirt and flan
nel trousers, take a little light re
freshment and sally out to the tennis
courts on the artistic and well-kept
CO-OPERATION 183
grounds of the co-operative society.
Tennis is one of the best games we
have. Why should it be regarded as
the especial privilege, of the few?
The miners were at first prejudiced
against the game. Now they are de
veloping some good players, and the
women and girls of the mining dis
tricts play too.
Our co-operative societies should
be devoting thought to joyful, health
ful use of leisure time.
REPUBLICANS AND
DEMOCRATS
"Dishonest, incompetent to govern,
without vision at home or abroad,
without any domestic program what
soever, and without men of any
moral or political stature—this sums
up Democrats as well as Republicans.
The only question of importance is
how much longer the American peo
ple are going to be stupid enough
sheep to stand it."
This is not the utterance of a so
cialist soap-boxer. It is not an ex
tract from an anarchist's essay. It
is a quotation from a leading editorial
article in "The Nation," a substantial
old weekly publication founded in
1865 and for fifty-seven years occu
pied in trying to patch up and make
workable the present economic sys
tem. Now, like everybody else, the
editors are waking up to the fact that
the profit motive as the purpose of
the industrial life of a people does
not work. It fails, it is going to
pieces. And men who are occupied
in trying to make it work, and who
can not see that it is an unsound
system, are either deficient morally
or intellectually.
An economic system based on ser
vice rather than profit will some day
take the place of the thing we now
have. It is waiting to be born. Then
men will wonder why the people of
the nineteenth century were so do
cile and tolerant of conditions that
were both unreasonable and degrad
ing.

184 CO-OPERATION
CHAIRMAN'S ADDRESS
By J. P. WARBASSE
At the Opening of the Third Congress of the Co-operative League, at
Chicago, Illinois, October 26, 1922
Delegates, Fellow Co-operators
and Friends:
We are assembled here at this
Third Co-operative Congress in a
time of stress. An economic system,
which has existed since the feudal
period, is breaking down. On every
side are the signs of its decay. A
war which was to end war and pro
mote democracy has promoted war
and demoted democracy. The old
rulers of the world, the diplomats,
financiers and politicians, seem sterile
of constructive ideas and ideals. Our
own country was once the land of
liberty and the haven of refuge of the
oppressed of the world. It has now
fallen in the grip of forces with such
hunger for profits that they would
even destroy the very right of work
ing men to unite with their fellow
workers to better their lot. The
farmers of the United States once
owned their farms. Today the land
is slipping from their hands and leav
ing them bereft and deeply in debt to
the bankers. No country—not the
Eoman Empire nor the Kingdom of
France, nor the Empire of Eussia—
ever moved more surely to its eco
nomic doom than these United States.
The suffering people of the world
turn their faces in vain toward their
seats of government, the mad rush
toward chaos goes on; while we as
semble here for a little while to lay
some stones in the foundation of a
new and better civilization.
I tell you, my friends and fellow
workers, this modest assemblage here
means more for the solution of the
world's distressing problems—offers
more for the cause of human liberty
and justice and peace—than do all
the assemblages of emblazoned rulers
that ever sat in the marble halls of
Versailles, Washington, Genoa, or
The Hague; and I call upon posterity
to bear witness to the assertion.
No country of the world, however,
has ever entered upon the road of
great progress in Co-operation until
its scattered co-operative elements
were united into a sound national or
ganization. The great forward im
petus in every country has never
come until its societies federated to
create a central union for mutual pro
tection and education. This Congress
is in response to an awakening un
derstanding of this need on the part
of the more successful and socially
conscious societies of the United
States. These naturally are the so
cieties which best understand the im
portance of co-operative education.
One thing we know: for nearly a
century people in this country have
been attempting to create co-opera
tive societies. The hunger for Co
operation is strong. Success has
crowned much of this earnest effort.
But on the other hand, failure has
often been the fate of many. In no
country in the world, perhaps, have
so many well meant attempts, backed
by enthusiasm and high ideals, gone
down. A study of these attempts
shows that society after society has
failed to succeed because of exactly
the same mistakes, unconscious of
the fate of the others. This condi
tion continues today. All over the
United States, honest and earnest
groups of people are attempting to
conduct co-operative societies by
methods which spell failure. In their
isolation they are destined to suffer
alone the same fate that has visited
countless others, chiefly because they
have not placed their common prob
lems in a co-operative pool with the
other societies of the country.
Two great needs confront the
Movement in the United States: the
need of unity and the need of edu
cation.
In all parts of the country are so-
cieties, affiliated with The Co-opera
tive League, which have sturdily
weathered the storm of economic de
pression and are valiantly moving on
toward greater success. Among them
are such societies as Roseland and the
Bohemian Societies of Chicago;
Sault Ste. Marie, Michigan; the
Franklin of Minneapolis, Waukegan,
Bloomington, Villa Grove, and Staun-
ton of Illinois; Maynard and Fitch-
burg of Massachusetts; the Keystone
of Reading, the Penn Central of Dis
trict No. 2, and Sunbury, of Pennsyl
vania ; the Finnish Trading of Brook
lyn; Our Cafeteria and the Utica So
ciety of New York; the Central Ex
change of Superior, and its affiliated
societies; the Bohemian societies of
Dillonvale, Ohio; the Milwaukee
housing and distributive societies;
and a host of others which constitute
the vanguard of co-operative pro
gress. There has never been a mo
ment when these members of The
League were threatened with failure.
Sound co-operative methods—educa
tion coupled with efficiency—speli
su.cess.
The Co-operative Movement in the
United States has come to a critical
point. The interest in Co-operation
is everywhere aroused. The working
people from one end of the country to
the other feel the need of forming
co-operative societies. Shall they
grope blindly? Shall they duplicate
the errors which others have made?
Shall they, with self confidence, fol
low leaders with fanciful notions that
can lead only to disaster? Shall they
fall victims to the cupidity of self-
seeking schemers who offer great al
lurements ? Or shall they have within
easy reach the instructions and guid
ance that make for success? These
are the pressing questions.
The failure of a co-operative society
is unnecessary. The methods and the
technique for organization and ad
ministration have all been compiled
and standardized. Three-fourths of
a century of information, the product
of experience, is all available. The
great tack is to get this information
to the places where it is needed. The
CO-OPERATION 185
need is for people who are trained,
with knowledge and experience, to
guide this Movement.
The Co-operative League has col
lected the standardized information
and made it available. If brought to
societies and applied, this standard
ized information spells success. How
to bring together these forces and
set them working for humanity is
the challenge of the day.
I take this occasion to offer a pro
gram of action.
Already there exists a splendid ar
ray of men and women, who are
trained and experienced in Co-opera
tion. These should be taken out of
their limited fields where they are
acting as store managers, organizers,
buyers, auditors and directors, and
made district advisers.
The country should be divided into
districts. In each of these districts
today are men who are capable of
serving as district advisers. They
are already trained and tried. Men
who can be district advisers are ex
perienced Co-operators. They are
able to instruct store managers in
these matters, and to discuss before
societies and boards of directors the
general problems of administration.
Such men should be established in
each district, with salary and trav
elling expenses adequate to his needs.
Part or all of his expenses may be paid
by the local societies receiving his
services, but it should be guaranteed
by the central organization, either
district or national.
For the training of new workers,
educational courses should be pro
vided. After six months of prelimin
ary study of history, economics, busi
ness methods, and the principles of
Co-operation, students should go to
the centers in the districts in which
are societies where practical training
can be given. There they should be
under the local district adviser. A
number of societies in different parts
of the country have already expressed
their willingness to take such student
apprentices. Out of these would come
the trained experts to carry on the

186 CO-OPERATION
administrative and educational work
of the Co-operative Movement.
The cost of carrying out such a
program would be a very small frac
tion of the money that it would save
to the people of this country from
the very beginning. We shall learn
before this Congress is over that the
people of America are daily pouring
a steady stream of money into hope
less or fraudulent enterprises sup
posed to be co-operative. A small
fraction of this money that is for
ever lost would save the rest.
If this program could be put in op
eration it would produce fundamental
and lasting good. The people are
ready, the need is great; all that is
wanting is the money to secure these
substantial results. This is one of
the major problems that confronts
this Congress—how to unite our
forces, to secure the financial support
and united power to bring about fun
damental co-operative education.
Here is a program which would con
stitute the best investment the people
of this country could make at the
present time.
In this, the land of business, where
the laws and customs are dedicated
to the interest of profit-getting, our
task is to build a different kind of
business. We must have people who
are willing to think, and work and
consecrate themselves to this task.
Our co-operative enterprises can suc
ceed only as we develop workers with
understanding of its fundamental
principles and methods. Education
will give us understanding; educa
tion will help us to success. A Co
operative Movement can develop
soundly only as it educates leaders,
teachers, and executives to carry on
its affairs. Only by education can
we guarantee the success of our en
terprises.
Now some thirty countries of the
world have national co-operative
bodies into which the single societies
are united; and these thirty national
organizations are joined into the In
ternational Alliance, with a total of
30,000,000 members.
The Co-operative Movement is the
one great international force, oper
ating in the economic field and in the
lives of the people, which is making
for human brotherhood and for the
emancipation of mankind from the
thraldom of privilege. We, in this
Congress are the builders of the bet
ter society of the future. I believe
that we shall succeed.
"HOW ONE VOTE ONE MEM-
BER" BEGAN
By H. RAPPAPORT
It is generally believed among Co-
operators that the Rochdale Pioneers
were responsible for two revolution
ary innovations which ensure demo
cracy in a co-operative society: viz.,
each member being entitled and lim
ited to one vote; and the requirement
that all votes shall be cast in person,
rather than by proxy. As a matter
of fact, the founders of the Rochdale
society do not deserve credit for any
radical departure from old establish
ed forms of corporate government, in
adopting these two vital principles.
Without desiring to detract from any
of the glory of our co-operative
"founding fathers" (to adopt a Hard-
ingism), it should be stated that the
foregoing democratic provisions are
a part of the basic law of corpora
tions, and had their origin in anti
quity.
Hundreds of years before powerful
profit-making corporations came into
existence, it was the universal prac
tice among corporations in England
to permit each member to have only
one vote, and to count that vote only
if cast in person. These two demo
cratic features which have been re
garded as a revolutionary develop
ment of the co-operative, were in fact
laid down for all corporations, muni
cipal or private, by the common law,
which is the basis of the laws of
Great Britain and the United States.
The leading American case involv
ing the question of the democratic
control of a corporation, is Taylor vs.
Griswold (14 N. J. Law, 222, 27 Am.
Dec 33). Space prevents us from
quoting more than a part of the bril
liant opinion by Hornblower, C. J.:
"The first inquiry, then, is, wheth
er, upon general and common law
principles, the members of any cor
poration have a right, as a matter
of course, to be represented and to
vote by proxy? This question must
be answered in the negative. It is
clear, that when the charter is silent,
and no by-laws have yet been passed
regulating the mode of election and
of voting upon other questions that
may arise in conducting the ordinary
and appropriate business of the cor
poration, the corporators, when law
fully assembled, must be governed by
the rule and privileges that prevail
in all primary assemblies."
A man with one share is as much
a member as a man with fifty.
The decision in the case of Taylor
vs. Griswold clearly held that the
powers of a vote for every share,
and of voting by proxy, are confer-
rable only by legislature and are not
common law powers. Even as far
back as the days of Henry IV, legal
precedents existed holding that the
basic law of corporations gave each
member of a corporation only one
vote, which must be cast in person.
(See 11 Hen. IV, pi. 64.) The first
historical instance of proxy voting
was in the case of the peers of Eng
land, who were permitted to dele
gate to other peers the right to vote
for them in their absence from the
House of Lords. Even this exception
to the general rule did not exist un
til it was sanctioned by the king by
special license.
In the beginning, even such large
profit-making corporations as the
East India Company were governed
according to the basic common law
rules. Later, when these corpora
tions accumulated huge profits from
their exploitation of foreign markets,
large blocks of stock came to be own
ed by a few individuals, who natural
ly desired to control the corporations
themselves. Various expedients were
resorted to by wealthy stockholders,
such as fictitious transfers of stock
to relatives or dummies, who there
by acquired votes which were cast in
CO-OPERATION 187
accordance with the wishes of the
real owners of the stock.
Corporations began to provide in
their by-laws for one vote for every
share, and for proxy voting. At
first, the courts refused to uphold
these provisions in by-laws, as being
contrary to the basic law of the land.
Especially did the courts frown upon
such by-laws in the case of utility
and other public service corporations.
With the continued growth of large
profit-making associations, corpora
tion laws were enacted legalizing the
undemocratic practices generally in
vogue in private corporations today,
Which permit money instead of men
to control, by providing for a vote
for every share, and for voting by
proxy. The attitude of the courts be
came more sympathetic to the view
of the moneyed interests in corpora
tions, and in the beginning of the
nineteenth century, decisions were
rendered upholding the right of cor
porations to provide in the by-laws
for these practices. But.the basic,
common-law rule of corporations still
requires each member to have one
vote in person, and only where spe
cific authority to the contrary exists
may the old democratic form be cast
aside.
It is not only gratifying to Co-oper
ators to know that the co-operative
features of democratic control are
sanctioned by the common law, but
it is of practical value as well. Groups
which desire to organize co-operative
societies will find in many .states co
operative laws on the statute books
enacting the old common law rules for
the democratic government of cor
porations. Where co-operative laws
do not exist, co-operative corporations
are governed by the ordinary corpora
tion statutes. Unless these statutes
clearly and specifically require each
share to have one vote, and unless
they permit proxy voting, without
giving corporations discretion in these
matters, the basic common law rules
hold, and the corporation may be gov
erned by the democratic principles of
"One vote for every member," and
"No proxy voting."

188 CO-OPERATION
SEEN HERE AND THERE
CO-OPERATION AND TRADES UNIONS IN AUSTRALIA
By F. J. DUNLEAVY
The struggle for the organization
and integration of the co-operative
consumers' societies in Australia is
but the ebb and flow of the economic
tide and co-operative thought and
education in all countries.
In an effort to obtain reliable infor
mation on co-operative societies in
that country, I wrote to over 100 co
operative consumers' and producers'
societies, sending them a question
naire. Of the co-operative consum
ers' societies that replied, not more
than three of them made the claim
that they were full Rochdale plan co
operative societies, and none of these
expended the two and a half per cent
of their profits for educational co
operative propaganda which is the
recognized minimum i n t h e full
Rochdale plan. The one that did
claim to spend this amount did so in
advertising its wares!
There is one lone co-operative
Credit Bank, in Melbourne. It was
organized in 1905, has an authorized
capital of 5,000 pounds and 2,065
pounds of this capital paid up. Share
holders number 1,369. The dividend
rate is 5 per cent. Total amount
loaned to 1921 was 42,189 pounds;
reserve fund 218 pounds; net profit
for half year, 23 pounds.
The oldest co-operative consumers'
society still operating was organized
in 1864 in Adelaide. The New South
Wales Co-operative Wholesale Society
has a membership of 26 societies.
The capital is 31,781 pounds; reserve
1,473 pounds, and turnover in 1919
was 317,612 pounds. The Balmain
Co-operative Society of New South
Wales is the largest consumers' co
operative society in Australia. It has
a membership of 14,000, a capital of
84,000 pounds, reserve of 4,560
pounds, and a turnover of 425,000
pounds.
In the State of South Australia,
there was a small eight-page co-op
erative newspaper called "The Wheat-
sheaf" run by a small co-operative
consumers' society. This was the
only co-operative consumers' news
paper in the whole of Australia, ex
cept "The Farm," run by the South
Australian Farmers' Union. Further
more, of the four libraries in Sydney,
a city with nearly a million popula
tion, there was not a single co-opera
tive journal of any country on their
list or in the Public Library, The
School of Arts, or the Mitchell Li
brary.
Of the other small co-operative
consumers' societies reporting, 14 in
all, they had a total membership of
18,569, a capital of 45,927 pounds, re
serves of 9,214 pounds, and turnover
of 288,547 pounds.
The Australian co-operative con
sumers' societies give little attention
to ideals, but talk much of dividends
and bonus payments amounting to
from five to fifteen per cent. The
trades unions are actually opposed to
co-operative societies. Out of 726,000
members of trades unions, in a popu
lation of little over five million souls,
there is not a single union which car
ries on a Rochdale plan co-operative
society, and only one, the Railway
Employees of New South Wales, that
claim to run a co-operative society for
its members. A member of this union
co-operative stated he paid two shill
ings and sixpence a month to the so
ciety (about fifty cents) and the so
ciety purchased goods and sold them
to the subscribers at cost with over
head charges of rent and service, etc.,
added, leaving no profit. Crude as
the idea is, it deserves credit for be
ing the first union to take up the
co-operative idea of buying and sell
ing.
There are two reasons why the
Australian natives in the Australian
trades unions are against Co-opera
tion. One is that this generation,
like the Americans, are too near the
pioneer spirit which developed indi-
vidualism which chafes at restraint
and discipline. The other reason is
that the unions, in the past, thought
they could achieve an economic
change by political pressure from the
labor party. The labor party has
been operating in the Australian par
liaments for twenty-five years. At
times they have had a full labor party
cabinet in the state and federal par
liaments. Notwithstanding this po
litical representation the chairman of
the wage commission appointed by
the federal government, after exhaus
tive investigations, stated that one-
third of the workers of Australia
were on the bread-line and another
third were near the bread-line. Trades
unionists must recognize in the face
of their past failures that trades
unions and political parties are neces
sary, but they are only auxiliaries to
Co-operation to rectify the present
economic conditions. All three are
necessary, each in their own line, but
working together. The trades unions
are a fighting machine—the advance
guard that march out and take the
advance posts. The political labor
party are the reserves that follow up
and hold the territory captured, while
the unions are reconnoitering ahead
for a further advance. The co-opera
tive societies are the supply depots
for maintaining both the unions and
the political labor party in their work.
The agricultural co-operative so
cieties in Australia are run on busi
ness lines and are well up to date.
There are several of these and they
are the largest and most powerful ex
pressions of Co-operation. The South
Australian Farmers' Union Limited
was organized in 1888 with a mem
bership of 103 and a capital of 800
pounds. The present membership is
14,300, paid-up capital 424,000 pounds
and estimated turnover 10,000,000
pounds. The basis of membership is
a minimum ten shares and a maxi
mum of 1000.
The Australian Producers' Whole
sale Co-operative Federation, Lim
ited was registered in 1920. This is
a federation of eleven co-operative
producers' societies whose annual
CO-OPERATION 189
turnover is 30,000,000 pounds. The
object of the Federation is collective
purchasing, on behalf of all the so
cieties, the commodities and merchan
dise required and used by the pri
mary producers, and the establish
ment of a large center in London,
for the more direct distribution of
all primary products such as wool,
meats, wheat, dairy produce, fruits.
The Co-operative Insurance Com- -
pany of Australia, Limited, was or
ganized two years ago.
This insurance company has al
ready 330 agencies in three of the
Australian states, which are also co
operative agencies for the six com
panies. It insures the product
from the producers to the consumers
in Australia and Europe, thus reduc
ing insurance charges to the possible
minimum for the grower and the
consumer.
The extent of the Co-operative
Movement in Australia warrants the
creation of a statistical bureau to
make a thorough survey and gather
accurate information of the Co-op
erative Movement and its progress
so that this information could be ex
changed with like bodies in Europe
and America and other countries.
This would enable the co-operative
consumers and producers of the
world to keep posted, so that these
societies would be recognized as the
international business and economic
agencies of the producers and con
sumers in all countries, and by their
organized economic constructive
power for good, prevent a recur
rence of the destructive madness
and losses to both consumers and
producers in all countries such as
occurred since the year 1914.
THE FRENCH MINERS' PLAN
FOR COAL
At the National Congress of the
Belgian Miners, recently held in Brus
sels, the delegate who is secretary
of the French Miners' Federation
explained the sort of nationalization
the French miners are demanding.

190 CO-OPERATION
He said: "We wish for neither state
ownership nor 'the mines for the
miners.' Both the state socialistic sys
tem and the syndicalistic system have
proved sufficiently defective to be
thrown aside. We wish to place the
management of the mines and mine
output in the hands of a National
Committee: this committee to be
composed of representatives of man
ual and non-manual workers' organi
zations and representatives of organ
ized consumers and the government."
Slowly but surely the world is wak
ing up to the fact that the consum
ers are an important factor in the
economic life.
PROGRESS IN POLAND
The Union of Polish Consumers'
Societies reports the continued
growth of Consumers' Co-operation
during 1921. The membership of
consumers' co-operative societies at
the end of 1921 was 348,500, a slight
increase over the previous year. The
number of co-operative societies was
1049. In order to promote efficient
operation, many co-operative societies
in the same territory are amalgamat
ing. The society of Warsaw has a
membership of 11,236 persons, it has
its own bakery and 24 branch stores,
and employs 74 persons.
A novel venture of the Union was
the leasing, early this year, of a 500
acre farm from the Government.
This is the first consumers' co-opera
tive farm in Poland. It is destined
to carry on poultry breeding and egg
production, for the benefit of con
sumers' stores.
Educational work is by no means
neglected by the Polish Union. Three
co-operative periodicals are issued,
and many thousands of pamphlets are
distributed. An especially interesting
phase of the Polish educational work
is the posters issued by the Union.
Highly artistic colored posters, con
taining striking co-operative car
toons, are issued by the thousands
every year.
CO-OPERATION IN NORWAY
The Union of Norwegian Distribu
tive Societies (Norges Kooperative
Landsforening, or as it is commonly
called, the N. K. L.) reports that the
consumers' co-operatives of Norway
have grown rapidly. The N. K. L.,
an educational and wholesale union,
started in 1907. It had 23 societies
affiliated with it. By 1921 it had 404
society members. The individual
membership comprised by these so
cieties amounts to 94,000. Though
the turnover of most private firms
decreased during the period of 1920-
1921, that of the co-operative whole
sale increased from 18,000,000 to
21,000,000 cfowns (about $5,000,000
normal). The wholesale operates a
tobacco factory, a coffee roasting es
tablishment, and a butter factory.
The latter turned out in 1921, 2,500,-
000 pounds of butter. A bank is
maintained by the Union, in which
there were 3,000,000 crowns on de
posit in 1921. The depositors include
9,698 individuals and 420 associa
tions. In January, 1922, a co-opera
tive insurance company was started,
to deal in fire, marine, burglary, and
liability insurance.
The local co-operatives affiliated
with the N. K. L. are prospering.
The turnover during 1921 of the 308
societies reporting was 115,099,500
crowns ($24,000,000 normal), or an
increase of 3,000,000 crowns during
the year. The societies employed
1,587 workers. Local co-operatives
operated 71 productive establish
ments: viz., 52 bakeries, 6 shoe fac
tories, 8 sausage factories and
slaughter-houses, 2 tailors' work
shops, 1 flour mill, 1 butter factory,
and 1 knitting factory.
THE CO-OPERATIVE MOVEMENT
IN JAPAN
According to an investigation
made by the Japanese Department
of Agriculture and Commerce, and
published by the "International La
bor Review," Vol. 1, No. 2, at the
end of 1921 there were 13,770 co
operative societies in Japan, classi
fied as follows:
Credit societies ................. 2,535
Sales societies .................. 251
Purchase societies .............. 436
Productive societies ............. 107
Sales and purchase .............. 380
Sales and production ............ 175
Purchase and production ......... 38
Sales, purchase and production.... 194
Credit and sales ................ 232
Credit and purchase ............. 3,059
Credit and production ........... 67
Credit, sales and purchase ........ 4,150
Credit, sales and production ...... 155
Credit, purchase and production ... 99
Credit, sales, purchase an production. 1,892
Total ............... ........ 13,770
The total membership of these so
cieties is 2,850,000. They are
grouped in 178 federations.
The 18th Congress of Co-opera
tive Societies (President, Viscount
Hirata; Vice-president, Mr. Shimu-
ra), was held on 21 and 22 April
at Tokyo. About 12,000 represent
atives from all parts of the country
were present.
The Minister of Agriculture and
Commerce, Baron Yamamoto, ex
pressed his gratification at the in
crease in the number of co-opera
tive societies, and at the important
part they play in the national eco
nomic development.
With regard to the attitude to be
adopted by co-operative societies in
the present economic situation the
following resolution was passed:
The congress considers it urgently neces
sary, in view of the situation at home and
abroad, that the co-operative societies in
Japan shall make every endeavor to de
crease the cost of production, effect im
provements in the methods of distribution
of commodities, and maintain harmonious
relations between the different classes of
society.
The congress also passed a reso
lution declaring that the establish
ment of a central credit institution
was absolutely necessary for the de
velopment of co-operative societies
in Japan, and decided that the gov
ernment should be asked to bring
in a bill in the course of the next
session of parliament for the estab
lishment of such an institution.
It is seen from the above that the
Japanese Movement is mostly credit
societies, and that it embraces all
forms of Co-operation. The most
significant fact is that the govern
ment is playing a large part in the
Movement.
CO-OPERATION 191
CO-OPERATORS DO NOT MAKE
SALES
The court at Gelsenkirchen, Ger
many, has handed down a decision
which states that the exchange of
merchandise by the co-operative
store with its members is not an act
of commerce, is not a sale in the
eyes of the law, but is a re division
or reassignment of the members'
rights amongst themselves; that it
does not come under the ruling of
those laws which are applicable to
commerce.
GERMAN SHARE CAPITAL
The co-operatives in Germany and
Austria have reached a point where
they fix the amount of share capital
that each member must put in. The
share capital of each member must
be equal to one weeks wage of the
better paid class of workman. As
wages increase the amount of share
capital must increase. Unless the so
cieties did this they would soon run
out of capital to carry on business be
cause of the steady decline of the
purchasing power of money.
PRODUCTION IN CZECHO
SLOVAKIA
The Wholesale in Czecho-Slpvakia
has recently established factories for
the production of coffee, malt and
flour at Ostrawa, Pilsen and Brunn.
FASCISTI DESTROY CO-OPERA
TIVES
The Fascist! in Italy represent the
young men who want to see the old
dying profit system of privilege kept
alive. They actually believe that
by fighting the things that are go
ing to take its place when it is gone
they can prevent its death. This is
the mistake always made by the
mob when it sees the thing it likes
slipping away to be replaced by
something else. For this reason the
Fascist! are now destroying the co
operatives. At Parma they have re-

192 CO-OPERATION
cently attacked and destroyed the
offices of the district co-operative
organization. This includes the
headquarters of the co-operative
bank. A number of the rural co
operative banks in other sections
have been destroyed. A sum of
120,000 lire was taken from one of
these banks. This sort of thing is
going on in many parts of Italy un
checked by the government. At
Kavenna the central premises of the
Co-operative Federation were razed
to the ground; nothing remains but
a mass of brick and stone.
The present economic system is
going to pieces. But the beneficia
ries of that system are not willing
to recognize the fact. They are re
sentful and opposed to any organ
ized movement that would build a
substitute for the old decaying sys
tem.
The Co-operative Movement is
necessary because the old profit
motive does not work well; it
does not give good results—there
fore Co-operation thrives. As the
decay goes on and the evidences of
the defects of the profit system are
seen more and more, the people who
want that system not to die grow
frantic. They try to destroy trade
unions; they put so-called radicals
in jail; they do many other foolish
things which of course hasten rather
than retard the on moving current
of events. We may see this sort of
thing grow in the United States.
The American Legion and the Klu
Klux are destined to play an im
portant role in giving voice and kick
to a dying system.
RUSSIAN CO-OPERATIVE TRADE
POLICY
A definite and uniform plan of ac
tion is essential for the co-opera
tives in every country. The Rus
sians are uniting to that end.
At the numerous congresses of
provincial co-operative unions now
taking place in different parts of
Russia, great attention is being paid
to the question of the trade policy of
the co-operatives, and a series of
resolutions on this subject adopted
at the Co-operative Congress of the
Government of Nijni-Novgorod indi
cate the aspirations of the co-opera
tives throughout Russia. These
resolutions recommend the follow
ing policy:
1) To develop quick sales and returns
by concentrating on large-scale operations
and diminishing the variety of goods of
fered for sale;
2) To dispose immediately of all goods
not answering the needs of the local popu
lation ;
3) To buy at the centres of production
and in central markets, thus avoiding deal
ings with middlemen;
4) To undersell the market wherever
and whenever possible;
5) To draw up a joint plan of supply
with the provincial workers' co-operative
union;
6) To establish a grain reserve to be
used in exchange for manufactured articles
needed by the agricultural population.
The conditions in America are
very different from Russia, but we
should be working toward definite
and well thought out plans of ac
tion.
PROGRESS IN SWEDEN
Swedish co-operative societies flour
ished last year as they have never
done before. In the same period
Swedish profit business, commerce
and industry suffered heavy losses or
at the best showed small profits. The
New York Journal of Commerce says:
"Whether the co-operatives succeed
ed in spite of the worldwide depres
sion or because of it is hard to say,
but the fact remains that the dismal
year of 1921 was for them a banner
year."
Sweden at present has about 1,000
co-operative stores, besides many va
rieties of other ventures, such as co
operative dwelling and building asso
ciations, purchasing societies, co-op
erative dairies and farmers' societies.
Last year's report of the Swedish
Union shows that a net surplus of
about $125,000 has been made by
these societies, while the cash on hand
has increased from $1,250,000 to $1,-
850,000.
Deposits with different branches of
co-operative unions, which conduct
limit savings bank activities, increas
ed to the equivalent of $3,350,000, re
presenting small savings of co-opera
tive society members.
The Central Union has started its
own producing plants in several
places. The report states that mem
bers of the co-opera'tive societies are
enabled to purchase practically all ne
cessities at the lowest prices obtain
able, as well as sell their products on
most favorable terms through their
own joint organizations. The great
est number of co-operative enter
prises, the report shows, are to be
found in the big industrial centers,
where the bulk of membership is
drawn from the ranks of workmen
and their families.
THE GERMAN FISH INDUSTRY
The German people are much in
need of nourishing foods which can
be brought within their very limited
purchasing power. No organiza
tion has done so much to help the
people in this direction as the co
operative societies. Recently they
have gone into the fishing industry
to take from the sea an abundant
and highly nourishing food which
can be had free for the taking. The
sea yields 100,000,000 tons of fish
annually for the nourishment of
mankind without the necessity of any
planting, feeding or cultivation. To
take advantage of this field the Ger
man Co-operative Wholesale Socie
ty 'has gone into the fish industry.
A receiving depot has been estab
lished at Geestemuende, the fishing
port, where the fish are brought in.
The fresh fish are transported to Al-
tona where the society has estab
lished a fish packing, curing and
shipping plant. In the course of
the year a curing and packing fac
tory will be built at Geestemuende.
At Altona a big fish industry build
ing has been bought, remodeled and
put in order for a growing enter
prise. Other large buildings have
been purchased for storehouses
CO-OPERATION
193
which have a capacity for several
hundred tons of salted fish. At
present over 100 employees are en
gaged by the society in this indus
try. WINNER OF CONTEST
Mr. Alanne is educational direc
tor of the Central Exchange, Supe
rior, Wis., and an ardent and en
thusiastic Co-operator.
NEW SUBSCRIPTION CONTEST
The League will again offer a prize
of a copy of any book listed among
the publications of The League or
bibliography, to the person who will
send in the most subscriptions to
CO-OPERATION during the period
November 1st to February 1st. The
contest is open to all. Sample copies
of the magazine and subscription
blanks will be sent on request to those
desiring to enter the contest.
CASH REGISTER FOR SALE
Co-operative societies are given an
opportunity to buy a cash register
which was formerly the property of
the Schenectady Co-operative So
ciety, which has been forced to li
quidate. It is a National Cash Reg
ister, a new electric model, class 1700.
We are assured that it is in first-
class condition. The original cost
was $475. The machine was used
only a short time, and, we are in
formed, is well worth at least $300.
It is offered for sale to co-operative
societies for $250. Those desiring
further information should write to
the person offering the machine for
.sale — Campbell MacMillan, 150
Brandywine Ave., Schenectady, New
York.
HAVE THE WORKERS LEARNED THE
LESSON?
"The growing realization by the workers
of America of the value and importance
of the Co-operative Movement has during
the last two years especially been com
mercialized for the advantage of a dozen
different centralized machines. These or
ganizations preached the doctrine that all
that the workers had to do was to entrust
their money to the "experts" who would
run Co-operation for them. The money lost
in them amounts to many millions, but, in
my opinion, the workers can well afford it
if only they have learned the lesson."
THOMAS H. BELL.

1;
194 CO-OPERATION
110 PER CENT SAVINGS
The Co-operative Association, at
Dillonvale, Ohio, reports a saving of
$27,856 on its turnover of $328,714
last year. This amounts to a saving
of 8 per cent when figured on the
turnover, and 110 per cent on the
capital stock, which amounts to
$25,000. Savings of 6 per cent were
returned to members on the basis of
their purchases. The "dividend"
amounted to $16,827, while $11,029
was set aside in the reserve fund.
This Association is composed
largely of Bohemians. It has a mem
bership of 370, and conducts seven
branches in addition to the central
store at Dillonvale. Organized in
1908, it has saved thousands of dol
lars to the consumers of Ohio, and is
increasing in usefulness. This so
ciety is affiliated with The Co-opera
tive League.
A RAILROAD SHOPMEN'S
CO-OPEr.ATIVE
In Erwin, Tennessee, The Consum
ers' Co-operative League, which is
composed very largely of railroad
shopmen, is rendering a great service
to the .striking shopmen and to the
general public as well. Although
hard hit by the strike, the society is
sound and prosperous. From July,
1921, to July, 1922, it supplied
$176,950 worth of goods to its mem
bership. The store deals in dry-
goods, notions, shoes, millinery, gro
ceries and meats.
The 343 members of the co-opera
tive received substantial rebates. For
the first six months of the year, sav
ings-returns of 8 per cent were paid;
and 5 per cent were returned for the
second half of the year. Since it was
organized, a little over two years ago,
this co-operative has returned to its
members in rebates more than was
the subscribed capital stock. This is
one of the finest societies of 'The1
League's constituent societies in the
South.
NEWS AND COMMENT
A FLOURISHING FARMERS'
STORE
The Farmers' Co-operative Store
of Princeton, Missouri, is >a 'lusty,
two-year old. Starting business in
1920, its sales the first year amounted
to $102,257. The second year's sales
increased to $123,339. The store sup
plied its membership with 4,731 sacks
of flour, 2 carloads of potatoes, 5
carloads of salt, and 14 carloads of
flour and feed.
The savings-returns for the year
amounted to $4,001, or the equiva
lent of 45 per cent of the capital
stock. The savings were distributed
among members as a 6*4 per cent re
bate on purchases, in addition to 8
per cent interest on capital stock.
The co-operative has $4,603 in the
bank, and total assets of $14,962.
These figures tell the story of the
prosperity of this young society.
CO-OPERATIVE MILK PUREST
IN CLEVELAND
A Department of Health inspection
of all the dairies in Cleveland, Ohio,
a few weeks ago revealed the fact
that the City Co-operative Dairy sup
plies the purest product in the city.
The co-operative was given a rating
of 94, which was the highest score
for purity and cleanliness. The cus
tomers of the co-operative are de
lighted with the quality of the milk,
butter and cottage cheese.
The dairy is now on safe ground.
When the co-operative opened for
business a few months ago, they were
met with the bitter opposition of the
large private dairies, which spread
malicious reports that the co-opera
tive was bankrupt. Farmers were
approached by the private dealers
and were threatened with the with
drawal of their trade, if they would
supply milk to the co-operative. JL
real peril to the existence of the so
ciety was the lack of capital with
which to finance the dairy plant.
Then came the encouraging news
that the Brotherhood Bank would
finance the plant. In addition thou
sands of dollars were raised among
unions and consumers for the purpose
of putting out more wagons to supply
the demand for co-operative dairy
products. Now the enterprise is be
ginning to show a profit, which will
be returned to consumers as patron
age rebates.
A very striking method of stimu
lating interest in the dairy was em
ployed a few weeks ago. A Wiener
Roast was held at the plant, and
about 600 people turned up to have a
good time. As a result many new
customers were made. The co-opera
tive uses much of the literature of
The Co-operative League with which
it is affiliated.
LEAGUE HELPS CHICAGO
The Co-operative Cigar Makers,
Inc., of Chicago, a producers' enter
prise, organized by the Cigar Makers'
Union, reports that it was "saved just
at the time when the great trade
slump hit the nation", through the
help of The Co-operative League. In
1919 a general strike of the cigar
makers occurred in Chicago. The is
sue was bitterly fought. Scores of
strikers were jailed for terms of from
30 days to 6 months, and were heavily
fined, for picketing. To combat the
employers, the workers organized
their own cigar business, and they
now supply co-operatives with their
own brand of cigars.
Just at the time the workers' fac
tory was launched, the financial de
pression began. Trade was hard to
get. The concern appealed to The
Co-operative League for a list of all
the co-operatives of the country, and
by means of the list, a mail order
business was built up which enabled
the workers' enterprise to pull
through the depression. This society
is a fraternal member of The League.
CO-OPERATION SAVES STRIKES
From all over the country come re
ports that co-operative societies are
giving invaluable assistance to strik
ing railroad shopmen, textile work
CO-OPERATION 195
ers, and miners. The Union Consum
ers' Co-operative, of Duluth, Minn.,
which is affiliated with the Co-opera
tive Central Exchange and with The
Co-operative League, is giving credit
to striking railroad shopmen. Sav
ings are effected for the strikers be
cause the prices charged by the co
operative are lower than elsewhere.
In Two Harbors, Minn., the co-opera
tive store is giving credit and assist
ance to strikers.
During the general strike of the
miners, which was recently won, hun
dreds of co-operatives gave aid to the
utmost. The textile workers of Paw-
tuxet Valley, and of Lawrence, Mass.,
were able to stay out for six months,
until they succeeded in going back
without the drastic reduction in
wages against which they had been
striking. During these weary months
the co-operative bakeries in Massa
chusetts donated sufficient bread to
supply all the families of the textile
strikers, while other co-operatives in
the vicinity donated thousands of
dollars, and strained their credit to
the limit to feed the strikers.
Co-operation is good strike insur
ance.
RINGING UP A QUORUM
There is a large and successful
co-operative society in New York
City which does not trust to the
mails alone to bring together the di
rectors for their monthly meetings.
Every director is rung up on the
telephone, reminded of the meet
ing, and the assurance gotten from
him that he will be present—or he
has to give a good excuse for ab
sence. This plan works well.
It is sometimes difficult for socie
ties to get a quorum at the quarterly
meetings. Some British sooieties
have resorted to an old fashioned
method to bring the members to
gether. The East Cleveland Society
employs the town bellman who goes
through the streets ringing 'his bell
and calling out the members to the
meeting. This is a delightful sur
vival of the old-time custom.

196 CO-OPERATION
LLANO COLONY
The following are excerpts from
a letter received from George T. Pick-
ett, Manager of the Llano Colony, in
answer to the article on the colony
written by "A Recent Colonist" in
the August issue of CO-OPERATION.
The letter unfortunately is too
lengthy to be published in full, as it
is about 2,000 words long. In the
interest of fairness, we are publish
ing the salient parts of Mr. Pickett's
letter.
"I have read in the August CO-OPERA
TION an article by 'A Recent Colonist' con
demning the Colony and its management,
also your editorial comment on it I am
mildly surpi'-sed that you have taken this
action without full information. ... I
now ask you to print this letter in CO
OPERATION.
"This Colony is not now fully self-sup
porting, if we use that expression in the
sense that it is able at this time to keep
up promptly its payments on the land it
has under option; to buy at once necessary
equipment for its agricultural and indus
trial developments; to bring its land at once
to full productive capacity; and to meet
from earnings all the expenses necessarily
incurred during this period of initial pur
chase, improvement and development. If
we wished to stop buying land and restrict
our membership to a small number, we
could be at once fully self-supporting. We
realize that the proceeds of sales of capital
stock (or membership fees) should ordi
narily be applied to such initial costs only
as purchasing land, clearing and fencing
it, and initial stocking and equipment, and
we are in good faith striving, and striving
hard, to reach that goal. We certainly do
not want the outside world to support us,
but we do want friends of Co-operation
everywhere to assist us in putting this
institution on a solid footing, and this at
the earliest practicable date. If you could
read the many letters that I receive from
persons wrecked and cast aside by capi
talism, in which they ask to be allowed to
come here though they have no money to
pay, I am sure you would feel the urgent
need of all reasonable speed in putting this
Colony in such condition that it could per
mit such persons to come without regard to
whether they had the price or not.
"The Colony is organized as a corpora
tion under the name of Llano del Rio Com
pany of Nevada. Neither I nor any other
manager has or ever has had the right to
dispose of the Colony's land as your in
formant states. Yes, forty acres of the
Colony land was conveyed to a former man
ager of the Colony for the purpose of ena
LETTERS
bling him to meet certain legal requirements
of interest to the Colony. It still stands in
his name, although he long ago asked me
to send him a form of deed for re-convey
ance, because I was crowded with some
urgent work. This deed was made in ac
cordance with a resolution of the Board
of Directors and with the knowledge of
many of the colonists. No attempt at con
cealment was ever made. It should be re-
conveyed and will be soon.
"Full and free criticism of the Colony's
officers and policies is allowed, but not
criticism of the settled basic principles such
as would endanger the very existence of the
Colony. We value our morale as highly as
our tangible assets, and we certainly do
'land on' the knocker who knocks to be
knocking. Criticism is welcome, especially
if the critic is of a constructive turn of
mind.
"The Colony is as socialistic as any
small-scale enterprise can be. It has at
least a large measure of communism. It is
certainly co-operative in the fullest sense
of the word. We are striving for the
proper balance between the ideal and the
real; between the theoretical and the prac
tical; between industrial democracy and in
dustrial efficiency. Experience is our
teacher; results are our test. . . .
"There are more ro_ads than one lead
ing to the Co-operative Commonwealth.
Among these are the radical political
parties and movements, producers' co
operatives, consumers' co-operatives and
co-operative colonies. Travelers -on any
one of these roads should not quarrel with
or hinder those on any of the other roads.
Should they not rather encourage and assist
one another? Do not we who are preaching
and trying to practice doctrines in advance
of our time have enough discouragements
and drawbacks at best, without having more
added by our own people? Must our friends
be our worst enemies? Should we not rather
encourage and assist one another? By doing
so we shall speed the day of final success
for us all.
"GEORGE T. FICKETT,
"General Manager.
"Llano Co-operative Colony."
As a contrast to the generalities
of Mr. Pickett we would call the at
tention of our readers to the follow
ing excerpts from a letter written to
Mr. Pickett by George Keen, general
secretary of the Co-operative Union
of Canada. We are willing to rest the
case here:
"I am obliged to you for writing so fully,
but I have to remind you that the informa
tion given is not to the point.
"All bona-fide co-operative organizations
give the fullest information as to their
financial position, verified by the certificate
of competent authorities. When trustees
are handling the assets of the people in a
co-operative or communistic undertaking it
is more necessary that they should have a
proper accounting than in capitalistic un
dertakings, where the element of specula
tion and uncertainty is recognized to exist;
the investor accepting unearned profits as
a consideration for the risk undertaken. I
challenge your statement that 'I can think
of no better authority than the comrades
who are here in our community1 in vouching
for the financial integrity of your under
taking. If your comrades are prepared to
operate the community without periodically
having an adequate accounting it will be
a very unwise procedure, but, if no other
interests are involved, will be a subject
within their absolute discretion. You over
look the fact, however, that those comrades
are the present owners_ of the undertaking
and that they are asking working men to
invest their slender savings without having
any data put before them as to whether or
not they will receive in assets an adequate
consideration for the payment. When capi
talists float joint stock companies on such
a basis they are properly subject to strong
condemnation, and in my judgment a co
operative organization following such meth
ods violates the fundamental moral princi
ples of the Movement.
•'You are advertising very widely solicit
ing membership to your colony. Tha people
you approach, before they part with their
money, on the one hand have a right to
know how much capital has been invested
in the undertaking, and on the other what
was_ paid thereout for each particular asset,
subject to such fair and legitimate deprecia
tion as subsequent events may suggest to
be necessary. Then these working people
of small means would be able to see whether
or not they would have a hundred cents in
assets for every dollar they invest in the
community. It is not communism but a
wicked exploitation of a sound moral prin
ciple if people living a community life ab
sorb the savings of people outside and use
them to satisfy their current needs. . . .
"I hope that even now, instead of dealing
in generalities and appearing to exploit the
sentiment of well-meaning people devoted
to the idea of a better social order, you will
put your proposition before them in plain
terms and give them satisfactory evidence
as to the quality of the security you are
offering them for their savings. Doubtless
people of small means and family responsi
bilities contemplate risking everything they
have in this world in your venture. I can
only repeat that until this is done, I, for
one, cannot assume the responsibility of
giving currency to the proposition now
presented.
"GEORGE KEEN,
"General Secretary.
"The Co-operative Union of Canada."
CO-OPERATION 197
CO-OPS "CARRY-ON" IN
NEW MEXICO
"What looks good to me is the indomitable
spirit of Co-operation that is shown here
to carry on under all difficulties, till we
put it over. We are what you would call
'bitter-enders'. Will not burden you with
details of our troubles. We wouldn't know
what to do if we didn't have a good stiff
fight on our hands."
N. S. BELL,
Tucumcari Co-operative Society.
Tucumcari, N. M.
FARMINGTON MINERS' STORE
"Your Call to the Third Co-operative
Congress was read before the board of
directors. I am proud to say that all were
in favor of the Congress and hope it will
be a success, but owing to the prolonged
coal strike, we have lots of money out. We
therefore deem it advisable to save the ex
pense of a delegate at the present time.
Also we have one of the chain-stores opened
right next door to us, but we hope to battle
it to a finish."
Yours for Co-operation,
N. THOMPSON, Secretary,
Farmington Co-operative Society.
Farmington, 111.
PINE BLUFF RAILROAD CO-OP
"We are indeed sorry that we were unable
to take advantage of this opportunity to
meet Co-operators from other parts of the
country, for we are sure that we could have
received information that would be bene
ficial to our society. However, due to the
conditions that exist as a result of the rail
road strike, the directors could not see their
way clear to send a delegate to this Con
gress.
"We are giving you a report of last year's
business. The merchandise sales were
$119,126, on which the gross profits were
$21,788. The operating expenses being
$17,651, the net profits were $4,136. We
paid a purchaser's dividend of 3 per cent
on the first of this year. We now have 175
stockholders. Since a majority of our
members are railroad men, we have been
considerably affected by the strike and have
lost quite a few. However, we are expect
ing to pull through and expect a greater
business than ever when conditions become
normal once more."
GEORGE WALTON, Sec'y-Treas.,
Pine Bluff Co-operative Association.
Pine Bluff, Ark.
INTERNATIONAL GREETINGS
"Your paper always gives me a new im
petus because I see in it an ever-increasing

198 CO-OPERATION
faith in the final victory of Co-operation.
"We here in old Europe are as yet in
very difficult circumstances, because of the
low valuta and the bad economic position
which is the consequence thereof.
"May statesmen and parliaments become
wise!"
G. J. D. C. GOEDHART, President.
International Co-operative Alliance.
KENTUCKY LOYALTY
"We have been in business two years. We
have had a hard pull to get through. Have
been knocked from the inside as wall as
the outside. Big business gave us six months
to exist, as by that time they would put
us out on the street; but we are_ still hold
ing on, with money to our credit in the bank
above all indebtedness. We will not be able
to pay our stockholders anything this year.
If we can pull through this strike crisis, we
will be on top.
"We have now about 150 loyal members.
Originally we had 300. One-half stuck.
"So far I am proud to say we are hold
up our own by curtailing in every way.
This trial has proved to my associates the
need of a national association. I am fully
satisfied after receiving your reply to this
letter, you w_ill receive our application for
membership in The League."
JOE F. RANDALL, President.
McCracken County Co-operative Ass'n.
Paducah, Ky.
PENN CENTRAL IS HOPEFUL
"I am optimistic concerning the future
of Co-operation, and feel that this coming
convention will do much to further its in
terests. The movement has been pretty well
sifted. This will make possible a national
organization of a cohesive nature. I hope
that we will be able to find a common
ground for federation along constructive
educational lines." T. D. STILES, Pres.,
Penn Central Co-operative Association.
Cresson, Pa.
FROM THE MAINE WOODS
"While I was in Maine this summer, I
came across a most interesting and suc
cessful co-operative store in Greenville. It
is a little town of about 1,800 people, is at
the foot of Moosehead Lake, and for the
past eight or ten years they have had a
really live Co-operative Movement there.
They do a weekly business of from $500 to
$1,000, have a most able manager, Jack
Hanson, and pay about 6 per cent per an
num on purchases to the members.
"Rev. Harry C. Vrooman, a clergyman
of wide and varied experience, who is now
in Greenville, is really the leading spirit in
the enterprise."
Baltimore, Md. EDITH H. HOOKER.
Proceedings of The Third Co
operative Congress, October 26-28,
1922, may now be ordered from
The Co-operative League.
STATEMENT OF THE OWNERSHIP, MANAGE
MENT, CIRCULATION, ETC., REQUIRED BY
THE ACT OF CONGRESS OF AUGUST
24, 1912
Of CO-OPERATION published monthly at New York.
N. Y. for April 1. 1922.
State of New York
County of New York, an.
Before me, a notary public In and for the State
and county aforesaid, personally appeared J. N.
Perklns, who, having been duly sworn according
to law, deposes and says that she Is the busi
ness manager of the CO-OPERATION and that the
following Is, to the best of her knowledge and be
lief, a true statement of the ownership, manage
ment (and If a dally paper, the circulation), etc..
of the aforesaid publication for the date shown In
the above caption, required by the Act of August
24, 1912, embodied in section 443. Postal Laws and
Regulations, printed on the reverse of this form,
to wit:
1. That the nameg and addresses of the publisher,
editor, managing editor, and business managers
are:
Publisher, The Co-operative League of America.
167 West 12th Street. New York City
Editor, James P. Warbasse,
167 West 12th Street, New York City
Managing Editor, Albert Sonnichsen,
167 West 12th Street, New York City
Business Manager. J. N. Perkins.
167 West 12th Street, New York City
2. That the owners are: (Give names and addresses
of Individual owners, or. If a corporation, give Its
name and the names and addresses of stockholders
owning or holding 1 per cent or more of the total
amount of stock.)
The Co-operative League of America,
167 West 12th Street, New York City
James P. Warbasse, President.
167 West 12th Street, New York City
A. P. Bower, VIce-President
167 West 12th Street, New York City
Waldfimar Niemela, Treasurer,
167 West 12th Street, New York City
(Organization members. 1,000.)
3. That the known bondholders, mortgagees, and
other security holders owning or holding 1 per cent
or more of total amount of bonds, mortgages, or
other securities are: (If there are none, so state.)
None.
4. That the two paragraphs next above, giving the
names of the owners, stockholders, and security hold
ers. If any, contain not only the list of stockholders
and security holders as they appear upon the books
of the company but also. In cases where the stock
holder or security holder appears upon the books of
the company as trustee or in any other fiduciary re
lation, the name of the person or corporation for
whom such trustee is acting. Is given; also that the
said two paragraphs contain statements embracing
affiant's full knowledge and belief as to the circum
stances and conditions under which stockholders and
security holders who do not appear upon the books
of the company as trustees, hold stock and secur
ities in a capacity other than that of a bona fide
owner; and this affiant has no reason to believe that
any other person, association, or corporation has
any interest direct or Indirect In the said stock,
bonds, or other securities than as so stated by him.
5. That the average number of copies of each is
sue of this publication sold or distributed, through
the mails or otherwise, to paid subscribers during
the six months preceding the date shown above is
.......... (This Information Is required from dally
publications only.)
J. N. PERKINS.
Business Manager.
Sworn to and subscribed before me this 22nd day of
September, 1922.
WALTER C. CAMPBELL,
(Seal) (My commission expires.
March 30th, 1924.)
CO-OPERATION
PUBLICATIONS
OF THE CO-OPERATIVE LEAGUE
HISTORICAL Per Copy Per 100
3. Story of Co-operation .................................................$ .10 $6.00
7. British Co-operative Movement ........................................ .10 6.00
10. A Baker and What He Baked (Belgian Movement)...................... .05
38. Co-operative Consumers' Movement in the United States............... .05 4.00
39. Consumers' Co-operative Societies in N. Y. State, (Published by Con
sumers' League) .................................................. .10
TECHNICAL
4. How to Start and Run a Rochdale Co-operative Society.................. .10 4.00
5. System of Store Records and Accounts................................ .50
6. A Model Constitution and By-Laws for a Co-operative Society........... .05 2.50
8. Co-operative Education. Duties of Educational Committee Defined..... .10
9. How to Start a Co-operative Wholesale................................ .10
27. Why Co-operative Stores Fail ......................................... .02 1.00
2. Co-operative Store Management ...................................... .10
14. How to Start and Run a Women's Guild................................ .05
15. How to Organize a District Co-operative League ........................ .10
MISCELLANEOUS
16. Model Co-op State Law ............................................... .10
17. Syllabus for Course 'of Lectures, with References and Bibliography.... .25
46. Producers' Co-operative Industries ................................... .10
11. Control of Industry by the People Through the Co-operative Movement... .10
12. Credit Union and Co-operative Store.................................. .05 1.76
34. Co-operative Movement (Yiddish) .................................... .02 1.26
43. Co-operative Housing ................................................. .10
42. Co-op Homes for Europe's Homeless ................................. .10
ONE-PAGE LEAFLETS
(One cent each; 50 cents per 100; $2.50 per 500; $4 per 1,000)
(1) Principles and Aims of The Co-operative League; (17) Do You Know why You Should Be a
Co-operator; (20) Why Loyalty Is Necessary; (21) Cost and Crime of Credit; (22) A Real
Co-operator; (25) Resolutions Adopted by A. F. of L.; (26) Factory Workers Co-operate!;
(28) Do You Know About Co-operation in Europe?; (40) Have You a Committee on Educa
tion and Recreation?; (44) What Is the Co-operative Movement?; (45) Schools and
Stores; (47) A Man's Right to a Job; (48) Tips to Co-operators; (49) Think It Over.
MONTHLY PUBLICATIONS
CO-OPERATION—(In bundle lots, $7.50 per hundred). Subscription, per year......... .$1.00
HOME CO-OPERATOR, 4 pages ................................................ $1 per 100
INTERNATIONAL CO-OPERATIVE BULLETIN (Pub. by The I. C. A.)...... .per year, $1.50
BOOKS
The following books are recommended as containing the best discussions of the modern
Co-operative Movement. They may be ordered through The League:
Bubnoff, J. B.: The Co-operative Movement in Russia, 1917.......................... .$1.25
Faber, Harald: Co-operation in Danish Agriculture, 1918.............................. 2.75
Flanagan, J. A.: Wholesale Co-operation in Scotland, 1920............................ 2.00
Gebhard, Hannes: Co-operation in Finland, 1916...................................... 2.00
Gide, C.: Consumers' Co-operative Societies, 1921...................................... 2.50
Gide, C.: Consumers' Co-operative Societies, American edition and notes, 1922......... 3.00
Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, $2.00; paper
bound ........................................................................... .60
Howe, Fred C.: Denmark, a Co-operative Commonwealth, 1921......................... 2.00
Maxwell, Wm.: History of Co-operation in Scotland, 1910.............................. 2.00
Nicholson, Isa: Our Story ............................................................ .25
Powell, G. Harold: Co-operation in Agriculture. Macmillan ........................... 1.50
Redfern, Percy: The Story of the C. W. S............................................. 2.00
Redfern, Percy: The Consumers' Place in Society, 1920............................... 1.00
Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918...................... 1.50
Smith-Gordon: Co-operation in Many Lands, 1920..................................... 1.50
Sonnichsen, Albert: Consumers' Co-operation, 1919. Cloth bound, $1.75; paper bound... .75
Stolinsky, A.: The Co-operative Movement. In Yiddish................................ 1.00
Webb, B. and S.: The Consumers' Co-operative Movement, 1921........................ 6.00
Webb, Catherine: Industrial Co-operation, 1917 ...................................... 1.50
Woolf, Leonard: Co-operation and the Future of Industry ........................... 1.50
Woolf, L.: Socialism and Co-operation ............................................... 1.50
"The Co-operative Consumer" and "Co-operation," III (1917), VI (1920), VII (1921).... 1.25
Transactions of Second American Co-operative Convention, 1920....................... 1.00
The People's Year Book, 1922...................................................... .76
(Ten cents postage should be added for books which cost more than $2.00, and five cents
for the smaller books.)
J

THE CO-OPERATIVE LEAGUE
(Member of The International Co-operative Alliance)
167 West 12th Street, New York
An educational organization for teaching the history, principles, methods ana alma of the
Co-operative Movement and for the promotion of Co-operation In the United States.
Join The League and thus help promote the educational work of the Co-operative
Movement. Individual Membership, $1.00 a year. Subscribe for CO-OPERATION,
the Monthly Magazine of The League, and keep in touch with the Movement.
Fnnlnoo/1 fillj * for Subscription for CO-OPERATION, $1.00.
unciosea nna ^........... AUI Memberihip in The LEAGUE> $ 1>0o.
Name .................................................................
Address.
Date....
Co-operative Central Exchange
Wholesale Grocers and Jobbers,
Bakers
We supply goods to Co-operative Societies ONMT
We are owned and controlled by Co-operativo
Societies.
We are organized to enable Co-operative Societies
to do collectively what they cannot do Indi
vidually.
Co-operative Central Exchange
Offices, Warehouses and Plant:
Winter Street and Ogden Ave.,
SUPERIOR, WIS.
Co-operators' ttd. Mntnal Vtre Insurance Co.
is now writing insurance In State of Wisconsin.
The Canadian Co-operator
Brantford, Ontario,
Canada
The organ of tbe Canadian Co-opera
tive Movement, owned by and con
ducted nnder the auspices of The
Co-operative Union of Canada.
Published monthly;
75c per annum
MOVING PICTURES
and
Stereopticon Lectures
may be rented from
THE CO-OPERATIVE LEAGUE
167 West 12th St., New York City
1. "Soit* Examples of English Co-operation."
Moving pictures of factory processes (two
reels) ................................85.00
H. "Co-operation In tbe United State*."
With 63 Stereopticon views ............73.00
S. "Tbe Co-operative Movement in Rngssla."
With 36 colored Stereopticon views... .73.00
Co-operation in Scotland
In no part of the world ia Co-operation further
developed, or more successfully practised than In
Scotland. If you wish to keep In touch, read
"The Scottish Co-operator"
(Published Weekly)
Subscription: Tsar 12 ah.; half-year. 6 »h.
Address, 119 Paisley Road,
Glasgow, Scotland
THE PRODUCER
Issued Monthly Price 3d.
If you want to keep in touch with
business, organization, administra
tive affairs, and problems of the
British Co-operative Movement,
read THE PRODUCER.
Published by
Co-operative Wholesale Society, Inc.
1 Balloon Street, Manchester.
Post free 4 sh. 6(1. a year.
The Trade and Technical Organ of British
Co-operation.
THE HOME CO-OPERATOR
A four-page magazine for
use in co-operative societies.
Issued monthly, in bundles, $1 per hundred.
Published by
The Co-operative League
Publishing Office, Willimantic, Conn. Al
bert Sonnichsen, Managing Eitor.
(MOTION
A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in vol
untary association, produce and distribute for their own use the things they need
Published monthly by The Co-operative League, 167 West Twelfth Street, New York City,
J. P. Warbasse, Editor. Price, $1.00 a year. Entered as second class matter, December 19,
1917, at the Post Office at New York, N. Y., under the Act of March 3, 1879.
Vol. VIII, No. 12 DECEMBER, 1922 10 Cent*
THE CHICAGO CONGRESS
The three congresses which The
Co-operative League has held have
each been mile-stones marking pro
gress in this country. The Springfield
congress, in 1918, brought together
people who were interested in the pro
motion of Co-operation. The Cincin
nati congress, in 1920, brought to
gether delegates from the most pro
gressive co-operative societies. The
Chicago congress, in 1922, was a con
gress of delegates of societies which
have united to form The Co-operative
League. From this time on the num
ber of societies that compose The
League should steadily increase until
it embraces all true co-operative con
sumers' societies in the United States.
This union of societies has been
growing steadily now for six years.
The Co-operative Movement in the
United States is going forward quiet
ly and without ostentation. The edu
cational foundation which is being
built is the best guarantee of success.
The brag and bluster that is intro
duced from time to time by inexperi
enced and untaught enthusiasts, in
flicts its harm, and then passes away.
The steady plodding on of the edu
cational work, the training of ex
perts, and the assembling of accu
rate information, are making their
constant impression.
The future was never so bright. Ee-
sults that have the character of per
VITAL ISSUES
manence are now being secured. All
of this rests upon the fact that we
are developing in this country an in
creasing number of people who under
stand the principles and nature of Co
operation-
A few years ago there were very
few people in the United States who
could be said to understand Co-opera
tion. Today this number has multi
plied until well-informed Co-opera
tors can be found in every part of
the country. The defect of the Move
ment heretofore has been that it
has been promoted by people who were
enthusiasts, but not informed Co-
operators. The hope of the Move
ment is that people who are learned
in Co-operation, are multiplying.
The third congress brought out
this fact. We may rejoice and be ex
ceedingly confident that education is
bringing results.
WAGES BEFORE DIVIDENDS
One difference between a profit-
making corporation and a co-opera
tive corporation is that the former is
all for dividends. Wages will be cut
when the prevalent rate does not give
the stock-holders a dividend. This
can be seen as an argument used be
fore wage boards every day when
corporations are about to cut wages.
If the earnings are so great that a
surplus of profits is produced, that is
covered up by increasing capitaliza
tion and issuing more stock. There

200 CO-OPERATION CO-OPERATION 201
are many ways to have no profits left
to increase the wages of labor.
But the co-operative starts out
with the purpose to pay its employees
at least the standard rate of union
wages. Upon this basis, after deal
ing justly with labor, if there are
any net surplus-savings the patrons
may have them. But not the stock
holders. They can have only the le
gal interest on their capital, and they
can not have that until labor has been
paid. The Co-operative Society puts
wages before dividends. The profit
corporation is interested in labor only
for the purpose of making out of it as
much dividend as passible for the
stockholders.
LIFE INSURANCE SAVES LIFE
Few people realize the huge re
sources that are being built up out
of the profits of the life insurance
companies. One use that is made of
these resources is to induce banks to
act as agents to get more insurance.
It is customary for insurance com
panies to deposit from $25,000 to $50,-
000 with a bank under condition that
the bank will get them a certain
amount of new insurance business.
Many of our readers may have won
dered why the president or cashier of
a bank went out of his way to sug
gest to them in a private and friendly
way to buy insurance in a company
that he knew from inside information
was offering "something especially
good in life insurance." The banker
does it because he is getting the use
of $50,000 for 3 per cent interest and
getting a return on it of 20 per cent
or more. His profit is $8,500; and a
banker can afford to give a good deal
of advice for that.
Life insurance companies are
charging from $24.00 to $46.00 or
more a year premiums on $1,000 in
surance that costs from $9.60 to
$15.00 a year to carry. They take
the huge resources that develop and
buy new business. Premium payers
are putting up from $8.00 to $20.00 a
year per $1,000 in excess of its value
to induce more people1 to come in and
be profiteered upon.
These facts would never be known
by the public except for the co
operative insurance societies. They
are growing up all over the country,
but especially among the farmers of
the middle west. A young man who
is about to take out $1,000 insurance,
on which the premium is $31.00, will
be told by the "legal reserve" agent
that the company will pay him a divi
dend of 80 cents after the third year,
90 cents after the fourth year, etc.
But he could get this same amount of
insurance with a co-operative com
pany for $9.60 a year. That is the
cost of the insurance. If it is divi
dends he wants, the co-operative com
pany could charge him the $31.00 a
year and then pay him an annual divi
dend of $21.40. Or the young man
can take another $9.60 of it and buy
another $1,000 worth of insurance
and still have $11.80 left over. Or he
can make his insurance $3,000 and
save $2.20 a year. In other words, the
co-operative insurance companies are
making it possible for a man to buy
$3,000 worth of insurance and have
$2.20 a year dividend with the same
money for which the old line com
panies would give him $1,000 worth
of insurance and 80 cents dividend.
A co-operative insurance company
is run without expensive offices, high
salaried officials, big commission to
agents, and the creation of great re
serves. It is simply insurance in the
interest of the insured. That makes
it cheap and uncomplicated. Unfor
tunately it gets no advertising. It is
not boomed by the press, by bankers,
and an army of agents. It must
make headway purely on its merits.
But that is the story of the whole
Co-operative Movement. It goes on
growing slowly and steadily. The
wise, the thrifty and socially minded
come in; the gullible and those who
are easily led by pretense and loud
noise stay out. Slowly and surely the
advantages of the co-operative meth
od will make their impression upon
society. A great biological prin
ciple is at work. The survival of the
fittest means the success of Co
operation.
LIGHT AHEAD
The decay of the profit system is
now far advanced. But the comple
tion of the decay will take many
years more. History is long. The
life of the individual is short. Still
the past ten years has brought a
great change. Less than ten years
ago the German mark was as sub
stantial as any currency in the world.
In 1913, when the German mark was
worth about twenty-five cents, if any
economist had said that the mark of
that great country in less than ten
years would be of so little value that
seventy-five could be bought for a
cent, he would have been laughed at.
A greater depreciation has taken
place with the money of Russia which
was one of the allied nations. Let
not the people of the "favored na
tions" vaunt themselves; their gov
ernments are infected with the same
disease. The purchasing power of
money throughout the whole world is
depressed.
The weakness of the economic sys
tem, which caused the war and which
is responsible for the great changes
now going on, rests in the fact that
its purpose is creating privilege. The
quest for profits to secure capital,
which may be invested, to provide in
come, is the vicious circle.
Increasing taxes and an increasing
number of people who do not work,
but who must be supported by labor,
will presently make the burden un
bearable.
After more governments have col
lapsed and more discontent has arisen,
something radical will have to be
done. The State will step in and per
form this function of regulating pro
fits. This will diminish the disorder
arising from profit-taking; but it will
not cure it.
Just as in the first century, when
the Roman Empire was disturbed by
business failures, strikes and panics,
things were stabilized for a while by
the abolishing of all interest on capi
tal for a period of three years. It
was the brutal and corrupt Emperor
Tiberius who took this action in the
year 33 in the interest of perpetuat
ing the power of the privileged class.
While expedients such as these
might prevent the collapse of the
present system, it is doubtful if the
leaders of big business and finance
will be capable of concerted action
to that end. It is also doubtful if they
would take such action in time to be
. effective. The natural tendency has
always been to enjoy profit-getting
to the full and to cherish a blind sense
of security in the strength of their
own position until the causes of its
downfall are too far advanced for
repairs.
The modern investor, seeking an
outlet for the enormous capital which
labor has created, has produced im
perialism which is both ruthless and
insane in its hunger for returns.
The prostration of central Europe,
and the progressive involvement of
England, France, Japan and the
United States in imperialistic rivalry,
are the results thus far. Once the big
financiers made their investments at
their own risk; now the governments
have become their tools. Wars, ship
ping subsidies, protective tariffs and
a multitude of privileges are now ex
acted of governments by the great
investing combines.
As the people view the holocaust
of these attacks upon the resources
of the public, they must realize that
if this continues there is nothing but
darkness and chaos ahead.
But some see a brighter future.
Through the murk they discern a
light shining, held aloft by the wise.
That light shows 30,000,000 people
working in the co-operative societies
eliminating the profit motive from
the affairs of man. This points the
way; this furnishes the means; this
is the saving remedy. It remains to
be seen whether the suffering peo
ples will follow this light, or go
blindly on with the old profit-mak
ing procession into still darker val
leys.
1

202 CO-OPERATION
THE THIRD CO-OPERATIVE CONGRESS
The Third National Congress of
The Co-operative League at Chicago,
111., October 26, 27 and 28, brought
together seventy delegates of con
stituent societies, from sixteen dif
ferent states, and thirty fraternal
delegates, besides a large number of
individuals interested in Co-operation,
and representatives from labor bodies.
The program of the congress was so
complete that interest could hardly
lag for a moment. One thoughtful
report followed another, each on dif
ferent phases of Co-operation. Not
only was valuable information ex
changed by co-operative managers
and experts, but the congress voted
for action on many important ques
tions.
Dr. J. P. Warbasse called the con
gress to order Thursday, October 26,
at 10 a. m. After the appointment
of committees, Agnes Nestor, repre
senting the Chicago District League,
and Alice Henry, on behalf of the
Women's Trade Union League, greet
ed the congress. Greetings were re
ceived from the International Co-op
erative Alliance, from foreign co
operative bodies all over the world
(one coming from New Zealand),
from American societies which could
not have representatives present, and
from individuals. A letter from Eu
gene V. Debs expressing his warmest
approval of the work of The League
evoked great applause.
The president delivered the keynote
address of the congress in the after
noon session of the first day's pro
gram. S. Alanne, Educational Direc
tor of the Co-operative Central Ex
change of Superior, Wisconsin, then
reported for the Committee on Co
operative Education. Many concrete
proposals for furthering education in
co-operative principles were adopted.
The Committee on Co-operative Leg
islation submitted for approval the
Model State Co-operative Law, draft
ed by the committee. The congress
unanimously approved the model law,
and recommended that the procedure
outlined by the Committee on Legis
lation, for promoting the model law,
be followed.
In the evening session, with Mr. L.
S. Herron presiding, W. C. Lansdon,
National Organizer of the Farmers'
Co-operative and Educational Union
of America, told the fascinating story
of the development of producers' and
consumers' Co-operation among the
farmers of the country. The farmers
are now marketing five billion dollars'
worth of their products through their
own organizations, eliminating the
"men in No-Man's Land"—the mid
dlemen. In addition to co-operative
marketing, the farmers are supplying
themselves with far in excess of
$100,000,000 worth of farm machin
ery, clothing and other necessities.
Annie S. Bromley, who had repre
sented The League at the Congress
of Women's Guilds in England early
this year, reported on the Women's
Guilds in America.
The Friday morning session of the
congress was presided over by War
ren S. Stone, Grand Chief of the
Brotherhood jof Locomotive Engi
neers. Mr. Stone made the significant
announcement that within ninety
days a co-operative bank would be
established for the first time in New
York City. "We are going down
among the powers that be, and we are
going to play the game with them,"
said Mr. Stone. He further advocated
the control of credit by workers and
farmers, through the organization of
co-operative banks, which would ena
ble the people to finance and ultimate
ly secure control of the basic indus
tries of the country.
Walter F. McCaleb, former manager
of the Brotherhood Co-operative Bank
and an authority on co-operative bank
ing, presented a report on the progress
made towards the organization of
labor banks since the last co-operative
congress. The locomotive engineers
had secured a national banking char
ter, and had opened their bank No
vember, 1920, with resources of $650,-
000. Within two years the resources
grew to $19,000,000. This bank, it
was reported, pays a higher interest
rate to depositors than any other of
the banks of Cleveland. It limits the
profit of shareholders to 10 per cent,
the balance being returned to depos
itors. "We have had great joy," said
Dr. McCaleb, "in telling many employ
ers who were fighting for the open
shop, when they came to us begging
for credit, that when they came back
and made peace with their men, they
could get credit, and not before. And
some of us were glad to see that
some of these employers have had
to close up their doors." The Brother
hood Bank has secured control of a
bank in Hammond, Indiana, and has
also aided in the organization of half
a dozen other banks. Inquiries have
been received from labor bodies in al
most every state in the union, which
are prepared to start co-operative
banks within a short time.
The report of the Committee on Co
operative Banking was supplemented
by Miss Caro D. Coombs, a member
of the committee, who reported on the
Development of Credit Unions. The
need for distinguishing between labor
banks and credit unions was empha
sized. It was reported that there are
now eighty-six credit unions in New
York, which in 1921 had total re
sources amounting to $4,445,297, mak
ing loans of $3,904,583 during the
year. In Massachusetts, where at the
end of 1921 there were eighty-two
credit unions in operation, the total
resources amounted to $4,047,172 and
the total loans to members to over
$3,003,765.
Other sessions of the second day of
the congress were occupied with re
ports on technical phases of Co-opera
tion.
Experts delivered instructive talks
on various kinds of co-operative enter
prises—stores, restaurants, housing,
dairies, etc. Mary E. Arnold, man
ager of "Our Co-operative Cafeteria,"
reported that this cafeteria, with a
membership of 1,000, mostly women,
is conducting three branches in New
York City, one in the heart of the
CO-OPERATION 203
financial district, with a turnover of
$300,000 a year. Ed. Solem, manager
of the Franklin Co-operative Cream
ery of Minneapolis, told the thrilling
story of how the locked-out milk driv
ers of Minneapolis had helped to or
ganize a co-operative dairy now owned
and controlled by 6,000 consumers.
Within a year and a half, this dairy
had grown to a business supplying
$1,500,000 worth of dairy products
annually. The price of milk was cut
from 13 to 10 cents a quart, and the
quality of milk was improved to such
an extent that, according to the
Health Commissioner of Minneapolis,
deaths from typhoid were practically
wiped out, and infant mortality con
siderably lowered. The surplus-sav
ings of the co-operative dairy are
given back as savings-returns to the
patrons. Two plants, worth $700,-
000, are already owned by this
co-operative. The committee's report
showed that other cities have organ
ized dairies owned and managed by
consumers. Waukegan, Illinois, has
a model co-operative dairy, and Cleve
land, Ohio, recently saw the opening
of a dairy which was organized
through the aid of The Co-operative
League and the Franklin Creamery.
John H. Walker, President of the
Illinois Federation of Labor, present
ed the report on the relationship be
tween the Labor and Co-operative
Movements. The report advocated
that every central labor body have a
co-operative adviser. Recommenda
tions were made for the appointment
of a member of The Co-operative
League to the Committee on Co-opera
tion of the American Federation of
Labor.
The report of the Committee on Co
operative Housing was presented by
its chairman, Mayor Daniel W. Hoan,
of Milwaukee, Wis. The information
on the co-operative housing society
of Milwaukee aroused great interest.
This is the first large-scale attempt
in an American municipality to meet
the housing crisis on a strictly co
operative basis. Twenty-eight acres
of land were purchased, on which
ninety homes were built. Nine hun-

204 CO-OPERATION
dred applications were received from
prospective co-operative tenants for
the first homes to be built. It is hoped
to have a thousand homes built with
in a short time. The enterprise was
financed by loans obtained from the
city, the county, and individuals.
Tenant members buy stock in the as
sociation, equivalent to the value of
the property they are to occupy. They
obtain a perpetual lease but do not
have title to the property. The rent
paid is used to defray the actual op
erating costs, and to retire the pre
ferred stock now held by those who
furnished the capital for the housing
society.
Otto Endres, President of the Utica
Co-operative Society, presented the
report of the Committee on Store
Management Problems. Ernest Aim,
Manager of the Roseland Co-operative
Society, of Chicago, reported for the
Committee on How to Meet Competi
tion. Dr. G. L. Kennedy, President
of the Villa Grove Society, presented
the report on Co-operative Distribu
tion of Coal. Reports were also re
ceived from T. D. Stiles on Credit
Trading, from Louis B. Blachley on
Co-operative Laundries, and from
John Nummivuori on Co-operartive
Wholesaling, these gentlemen being
the chairmen of their respective com
mittees.
The Saturday morning session was
an executive session of The League.
A full discussion was held on the re
lation of District Leagues to The Co
operative League and on the functions
to be performed by The League, stim
ulated by the report of Leslie E.
Woodcock, President of the New York
City Co-operative Federation. It was
the consensus of opinion among the
delegates that the support given by
the constituent members of The
League should be increased.
The congress elected by acclama
tion the following as Directors of The
Co-operative League: James P. War-
basse, A. P. Bower, W. Niemela, L. S.
Herron, J. Nummivuori, W. C. Lans-
don, A. Sonnichsen, S. Alanne, John
H. Walker, Thos. J. Donnelly, Daniel
W. Hoan, J. F. McNamee, R. H. Salter,
R. A. McGowan, Jos. Schlossberg,
Emerson P. Harris, and Warren S.
Stone.
Alternate Directors elected were
the following: W. F. McCaleb, James
Maurer, Mary E. Arnold, W. H. Clos-
ser, Thomas Bell, Frederic C. Howe,
L. J. Salch, A. W. Warinner, Ed.
Solem, and Leslie Woodcock.
The congress passed resolutions
demanding the release of political
prisoners, advocating that preference
be given by co-operatives to union
label goods, creating a committee to
raise $50,000 among unionists and
farmers for the promotion of Co
operation, recommending the creation
of co-operative schools throughout
the country, appointing a joint com
mittee to work in harmony with the
Workers' Educational Bureau, and
recommending to state federations of
labor the appointment of authorized
co-operative advisers whose qualifica
tions are passed upon by The Co-op
erative League.
A significant step was the decision
of the congress to bring about a work
ing agreement between The Co-opera
tive League, the All-American Co-op
erative Commission, and the Bureau
on Co-operation of the American Fed-
era*ion of Labor
Following the executive session of
The League, the report on Co-opera
tive Taxation was made by the chair
man of the committee, H. Rappaport.
The organization of co-operative
study groups was reported upon for
the Committee on Intercollegiate Co
operative Society by Rev. Joseph
Reiner.
Andrew P. Bower, chairman of the
Committee on Spurious Co-operatives,
reported on the tragic effects of these
organizations which have preyed upon
the people. His report showed how
most of them have now been driven
out of existence since the second co
operative congress. The report esti
mated that at least $15,000,000 have
been lost to workers during the past
three years through the operations of
fake co-operatives, which were in re
ality nothing but wild-cat stock-sell-
ing schemes. A resolution was pass
ed condemning the "Co-operative"
Society of America, with headquar
ters in Chicago, as a menace to the
genuine co-operatives of the coun
try. A keen observer of conventions
summed up the Co-operative Congress
in these words: "Here was a group
who are buckling down to do the
things the world needed to have done;
simple deeds—baking loaves of bread,
distributing milk, serving pure food
from behind the counter, building
homes for the workers, supplying
credit on easy terms to needy workers
and farmers—yet behind the doing
was the biggest idealism any of us are
capable of. In this age when all of
us are groping for the way out, most
of us take it out in talking. But you
couldn't sit in that congress of The
Co-operative League and not realize
that the daily lives of these men and
women were the translation into ac
tion here and now of their highest
ideals."
REPORT FROM NEBRASKA
One of the best reports of the Chi
cago congress is found in the "Ne
braska Union Farmer." The congress
was reported by its editor, L. S. Her
ron. The report says that:
"Co-operation in all its phases was
covered in the program. The League is
a federation of consumers* co-opera
tive societies, hence the program was
concerned mainly with consumers' Co
operation; however our own W. C.
Lansdon, national lecturer of. the
Farmers' Union, occupied most of one
evening session telling of the progress
and problems of the farmers' co-op
erative organizations—and he made a
decided hit. 'Perfectly fascinating,'
was the verdict of President War-
basse of The League.
"Now please do not get the notion
that outside of Mr. Lansdon's address
what happened at this congress was
of no interest to farmer Co-operators.
Read on and see. Our farmers' Co
operative Movement is double-bar
relled ; we co-operate in buying as well
as selling. All of the discussions of
Co-operation from the consumers'
CO-OPERATION 205
standpoint were applicable to our co
operative buying undertakings. More
over, the problems of education, loy
alty, financing, and business manage
ment are much the same in either
type of Co-operation. The farmer
representatives in the congress, of
which there were several, felt very
much at home."
The entire proceedings of the con
gress are summarized by the Editor.
He states that Mr. Lansdon showed
how farmers have also developed their
own insurance companies to insure
their property and crops. Through
their live stock shipping associations
they send their stock to their own co
operative live stock commission
agencies. The chain of three com
mission houses operated by the Ne
braska Farmers' Union is the larg
est single co-operative business in
the world.
Mr. Lansdon's address brought out
many questions. One of these was in
regard to the effect of the commodity
marketing organizations in boosting
prices to consumers. Mr. Lansdon ex
plained that the gains made by farm
ers in this way came at the expense
of speculators and middlemen. The
idea was to distribute products evenly
throughout the year, instead of try
ing to make consumers take a year's
supply in a few months.
TRANSACTIONS OF THE THIRD
CO-OPERATIVE CONGRESS
The complete report of the Third
Co-operative Congress will be ready
in a few days.
Those who want a birds-eye view
of Co-operation in the United States
will find it in these transactions. The,
national congress is the only occasion
on which all Co-operators from all
parts of the country come together
for reports and discussion.
A SYMBOL AND A WORD
In December, 1920, The Co-opera
tive League offered a prize for a sym
bol and a word that could be copy
righted and used exclusively to desig
nate true co-operative societies. More
than a hundred symbols and words
were submitted. Some came from as

Ji'P
206 CO-OPERATION CO-OPERATION 207
far as Switzerland. Many of these
were very meritorious. Some repre
sented a high degree of artistic talent.
Many presented symbolism which dis
played a large grasp of the meaning
of Co-operation. But the committee
was not able to agree upon any one.
The symbols that were artistic were
too complicated and difficult of re
production. Those that were simple
and symbolic lacked symmetry and
artistic quality. No word that was
submitted was found acceptable.
After repeating the announcement
in this magazine three times during
the past two years, and still not re
ceiving a symbol and word that could
be adopted, the Executive Board set
to work to create the symbol and
word. After several weeks of trial
with many designs, the following seal
was adopted.
The pine tree is the ancient symbol
of endurance, fecundity, and immor
tality. Those are the qualities that
we see in Co-operation. In the old
Egyptian, Persian and Indian myth
ology, the pine tree and its symbol,
the pine cone are found typifying life
and the perpetuation of life. The
hardy pine symbolizes the enduring
quality of Co-operation. More than
one pine is used to represent the mu
tual co-operation necessary. The
trunks of the pine trees are continued
into the roots which form a circle.
The circle is another ancient symbol
of eternal life. It typifies that which
has no end. The circle in this picture
represents also the world, the all-em
bracing cosmos, of which Co-opera
tion is a part and which depends for
its existence upon Co-operation.
The colors of the two pines and the
circle are dark green; this is the color
of chlorophyl which is the life prin
ciple in nature. The background
within the circle is golden yellow, typ
ifying the sun, the giver of light and
life.
C L U S A
It is composed of the first letter of
each major word of The Co-operative
League of the United States of
America.
It may be represented as follows:
Both the seal and the; word have
been copyrighted and patented by
The League. Their use without the
consent of The League is illegal and
will be prosecuted.
Co-operative societies which are
members of The League in good
standing may make application for
the use of the symbol and the word,
and will be granted the privilege of
displaying either or both on their
goods, publications, signs, vehicles,
and stationery. The word may be
used in combination with the symbol
as shown below.
When the word and symbol are re
produced together in colors the word
C L U S A should be in red.
In the course of time the display
of this seal will come to distinguish
bonafide co-operative consumers' so
cieties. The purpose of the seal has
been to make it possible for true so
cieties to be easily identified in a
country where such identification is
sorely needed. "Clusa" products
should become the standard of purity
and excellence.
LET'S WORK TOGETHER
Extracts from Report Presented to the Third Co-operative Congress
By LESLIE E. WOODCOCK
"Our Cafeteria," New York
We are met in our Third National
Congress. What is its significance
for the future?
Unity, Solidarity, Organization;
these are the things that we felt
there. But the inspiration gained is
of no value if it does not result in
definite action.
For exactly the; same reason that
individuals must unite in a local soci
ety to carry on business by joint
strength, societies must join together
if they hope to carry on business on
a larger scale. As societies, we
"must hang together or we will hang
separately."
In my mind's eye I see over the
door of The Co-operative League
House in New York this legend:
"This League is established by
the Consumers' Co-operative
Societies of the United States
to accomplish by mutual aid
the following purposes:
"1. To spread a knowledge of
the history, aims, principles, and
methods of the Consumers' Co
operative Movement.
"2. To give technical expert
advice and assistance to one an
other."
It is upon the second of these two
purposes that I would have societies
now concentrate their effort. We
already have the business and legal
experts whom we need. We have
our expert managers, members of
our boards of directors, our ac
countants, and the loyal members of
our societies who would gladly give
time and service.
Expert Service Through District
Leagues
1. A District League should have
an executive committee of managers
or business men who would keep in
touch with the business reports of
all societies and would be in a posi
tion to make a thorough investiga
tion of any society which requested
it. Such an investigation made by
fellow Co-operators, who would un
derstand the situation and who were
themselves business men, would be
of the greatest assistance.
2. Its officers should keep in touch
with half a dozen lawyers in the dis
trict who are sympathetic to Co
operation, and keep those men fully
informed as to the growth and sig
nificance of the Co-operative Move
ment, so that they may be called upon
for up-to-date advice at any time.
3. Its officers should have a list of
the accountants working for co-opera
tive societies, who know how to ad
vise for good business organization
and who are also friendly to Co-opera
tion. We have several such account
ants in New York whose advice would
be worth everything to a society just
getting on its feet or one which is in
financial difficulty.
4. It should take steps to see that
every genuine co-operative society in
the district is brought into the Dis
trict League and is given a chance t-j
contribute to the work of the district.
5. It should assist the national or
ganization in every way in the promo
tion of co-operative education.
6. It should keep the national
League informed of all happenings in
the district, and call upon it for ad
vice and aid when it is needed.
7. Most important, as a means to
the rest, its executive committee
should have at least one full time
paid worker whom we would call the
District Adviser, who would spend
his whole time carrying out the di
rections of that committee. He would,
in fact, be the person to draw up re
ports, to make investigations of false
co-operatives, to interview the law
yers when advice is required, and in
general do all the things that a paid
worker can do when a committee
itself is giving only part time in addi
tion to their own jobs.
In the beginning I would have the
district organization somewhat in
formal, letting the appeal of mutual

208 CO-OPERATION
help bind us together. As we become
better and better acquainted we are
going to conduct joint buying, then
we are going to run wholesales; we
must get together any way that we
can at first. Beginning as a small
fellowship, we must plan to work out
great things.
Service by the National Office
Now, how about the national of
fice of The League itself? How can
it help us?
I would have its work divided into
two departments, one of which would
promote co-operative education, pro
vide lecturers, publish pamphlets and
literature, and interpret to us contin
ually the spiritual side of Co-opera
tion.
The other department I would call
the Service Department, and it is to
this that we workers in District
Leagues would turn for help and ad
vice. Large legal questions of all
kinds, income tax problems, index
numbers, and operating costs for all
kinds of business would be worked
out in that department.
There should not be a large staff
I 'iere, but an efficient one. As a min
imum, I should say the national Serv
ice Department should have someone
who has had legal training, someone
who has had experience in co-opera
tive business management, and then
in addition a first-class accountant,
whose job would not be merely to
check figures, but to tell us when we
are running on too low reserves,
when our money is badly invested,
how to make better and simpler re
ports to our members, etc.
These experts would be available to
us at all times. They would come to
our District on request to give what
ever advice we wanted at the time.
The accountant ought to make reg
ular trips over the country to advise
directly with our local auditors, and
then ought to make independent re
ports directly to us as to the char
acter of auditing service we are get
ting. Books are very technical things,
and we need an accountant who is an
expert in interpreting those technical
things from a co-operative point of
view and who can bring the co-opera
tive experience of the whole country
to bear upon local problems.
Let's Pay for It
The report of The Co-operative
League for the last two years shows:
1. Nearly $40,000 spent;
2. Less than $650 duefe paid by
Co-operative Societies.
Think of it! A little over $300 a
year from societies representing more
than half a million Co-operators!
The simple fact is that we cannot
be a "league" of co-operative soci
eties until we pay the bills of our
organization. It is a wonderful thing
that individuals of broad vision and
human understanding should con
tribute their time and their money
for a great social movement. They
are the salt of the earth.
But my plea is for a League of
Societies that will "accomplish by
mutual aid"; a really autonomous
union of self-respecting organizations
which will justify and requite the de
votion that has been given so gen
erously. How Pay for It?
We will have to pay dues. I would
suggest a choice of two kinds of dues:
1. Twenty-five cents per member
(ten for the national League, fifteen
for the District League), or
2. One-tenth of one per cent of the
gross turnover of business (two-
fifths to the national League, three-
fifths to the District League).
There are different ways of raising
this money—from the treasury, from
socials, dances or from special contri
butions of members.
Two Questions
I would like to suggest these two
questions for answer:
1. Would a business service given
by successful co-operatives, on ac
counting, legal and business manage
ment problems, be a desirable means
of helping new societies get started
or old ones to get over difficult places ?
2. Would you be willing to pay for
such service rendered?
Will you write your answer to The
Co-operative League?
CO-OPERATION
OBSERVATIONS OF CO-OPERATIVE BAKERIES
Abstract of report delivered to
Third Co-operative Congress:
This is not an expert's paper on
bakeries. It is not by a bakery man
ager nor even by member of a co
operative bakery. Therefore the dis
cussion is necessarily limited in its
scope and in its value. The chairman
of the committee on bakeries failed
to make his report and this is a sub
stitute; a brief summary of informa
tion gathered from seven or eight
bakeries in the East in the Spring of
1922.
Status of Co-operative Bakeries
There are probably no more than
seventy-five co-operative bakeries in
the United States at the present time.
Fifteen of these are Jewish, three or
four Italian, ten or fifteen Finnish or
Swedish, the rest American or mixed.
Two or three of the bakeries have a
membership of more than 2,000—
most of them are much smaller; mem
bership ranging from 60 to 600. The
greater number of co-operative baker
ies are in the East—Massachusetts,
New York, New Jersey. In many
respects the bread requirements of
the Jewish people differ from those
of the American, those of the Italian
from those of the Swedish; and there
fore the problems vary somewhat.
Organization
The problem of organization is a
co-operative problem rather than a
bakery problem, and therefore re
quires no extensive discussion here.
However, competition in the bakery
business is now about as sharp, the
methods as unscrupulous as in the
grocery or restaurant business. In
experienced Co-operators, talking
glibly about the huge profits in bread
and other food stuffs are not the peo
ple to start any kind of co-operative
business.
No new bakery should be plan
ned until a careful survey of the
community has been made; of the
bread needs of the community, of
the possible number of supporters
for a bakery, the number of com
By CEDRIC LONG
209
petitors already in the field, their
way of doing business, their prices,
their advertising methods, their
weakness, their profits (if such fig
ures can by any hook or crook be
obtained). Co-operators must adopt
modern practices: the survey is one
of them; it must be made by com
petent people and the recommenda
tions scrupulously followed. Are
workingmen Co-operators ready for
such painstaking preparation as
this? Manager
A preliminary search should also
be made for a man competent to
manage a co-operative bakery, and
for a suitable site for a building or
old building which may be rented.
The manager of a bakery must be
a Co-operator.
I do not think it essential that
the manager be an experienced
baker, acquainted with all the tech
nique of mixing and baking bread.
He can get a good master baker to
take charge of all that work. The
manager will have all he can do if
he adequately handles the problems
of buying, selling, organization of
delivery, with a general supervision
of the workers and working condi
tions and discipline.
Capital
The question of capital necessary
for beginning operations varies.
Generally, managers recommend a
minimum of $3,000 to $5,000. Money
must also be reserved for contingen
cies, for almost all bakeries operate
at a loss for from six months to three
years. Directors
The directors should not be the
most affable and most talkative men
in the society: the kind who always
get themselves elected to office in
every organization from the Men's
Bible Class to the local Association
for the repeal of the 18th Amend
ment; but the best men available.
Labor Problem
No co-operative association about
to go into baking of bread should

'
210 CO-OPERATION CO-OPERATION 211
fail to establish from the very be
ginning friendly relations with the
local bakers' union. An early con
sultation with union officials may
forestall some very serious misun
derstandings later-
Starting the Business
A few societies have been able to
rent not only the building, but ovens
and sifter and mixer as well. This
makes it possible to begin with small
capitalization, but high rentals eat
up any possible profits. Rental for
building alone usually seems to run
from 11-3 per cent to 3 per cent of
month's sales; 3 per cent is too high.
Distribution
Wrapping and Handling.
Most of the bakeries in the larger
cities, especially those that bake for
American trade, find they have to
wrap their bread. The large cor
porations do it and force others to
follow suit.
I find most managers are satisfied
to get from the bread baker a mere
statement of amount of flour used
each day, and from that figure a de
duction as to 'how many loaves
there must be. Loaves actually baked
should be counted. If any control sys
tem were in effect with perpetual in
ventory, of course the manager would
have to keep these figures.
Selling
I find some bakeries are selling
loaves retail at wholesale prices to
purchasers who come to buy direct
ly from the bakery;—a practice un
fair to some of the members. Whole
sale prices seem to range all the way
from 15 per cent to 25 per cent be
low retail depending on the local
market. Most managers report that
they make no profit whatever from
wholesale sales. In bakeries like
that at Lynn, Mass., where 95 per
cent of the sales are retail, this
makes little difference, but few man
agers can boast of such a high per
cent of retail business.
Delivery
Profits on retail delivery are usu
ally zero or worse. The most suc
cessful bakeries are those that don't
have to or refuse to meet this kind
of competition. One manager re
ports that only one per cent of his
profits are from delivery sales,
another 3 per cent, a third 2 per
cent, another a loss.
Delivery expenses are a vexing
question. A few bakeries evade the
difficulty by hiring their delivery
done for them. The Jewish baker
ies in Lynn and in Lawrence, Mass.,
both do this, selling the bread to
this delivery man at wholesale
prices, letting him assume all re
sponsibility for garage rents, up
keep and bad debts. These two
bakeries get off with a two per cent
delivery expense. The Finnish
bakery in Brooklyn pays a straight
commission to drivers, and delivery
overhead comes to 26 per cent.
Maynard and Fitchburg, Mass., pay
straight wages; the former has a 22
per cent overhead. Utica pays
wages plus commission. A small
Jewish bakery in Massachusetts
finds its two trucks running 30 and
39 per cent respectively for over-
'head; they pay straight wages.
Records
Book accounts with bread custom
ers should be absolutely tabooed.
There are a few final figures
which have interest, although they
are gathered from too small a num
ber of bakeries to have much signifi
cance. At Maynard in 1920, 45 per
cent of total manufacturing cost
went to materials, 20% per cent to
labor, 8 1-3 per cent to overhead.
Lynn pays 20 per cent to labor,
while Lawrence pays 45^ per cent.
Education and Publicity
Bread wrappers are used widely
for publicity and education. Utica
distributes to its customers co-oper
ative window cards which they
place in the window when they want
the baker to stop; this advertises
co-operative bread widely. In Sault
Ste. Marie the private grocers are
being pushed to the wall by the five
co-operative stores, but they have
to sell co-operative bread just the
same because of the demand.
SEEN HERE AND THERE
THE SUPERIOR FINNS
Around about Superior, Wisconsin,
are settlements of Finns. Their in
tellectual headquarters were once at
Hancock, northern Michigan, but the
copper and lumber barons becoming
incensed at the service the Finns per
formed for the exploited workers of
that region, destroyed their head
quarters, and threw the leaders into
prison. The Calumet massacre was
one of the incidents of that period.
Then seven years ago the Finns
moved their educational headquarters
to Superior, Wisconsin. Let us see
what they have done for Superior and
what their influence in the com
munity has been.
First they bought a brick building
on a prominent street corner for
$20,000 where they established their
printing plant. This building had
previously been a center of social de
moralization. It had contained a
saloon and a drinking hall. Now one
sees printed there their daily paper
"Tyomies," with a circulation of
12,000. The printing establishment
also turns out books, pamphlets, and
magazines. There is a bookbinding
establishment connected with the
printing house. The building also
houses the Workers' Mutual Savings
Bank, which now has deposits of over
$100,000. There is also a book store
which is the only place in the city
where up-to-date and enlightened
works on modern economics and soci
ology are to be found. Everywhere
in this building are seen the signs of
culture and education. This is what
the Finns did with a pest spot in Su
perior.
Five years ago they had so many
co-operative societies scattered all
through the surrounding country
that these united to form the Co
operative Central Exchange at Su
perior. This is a wholesale consist
ing of about sixty societies. They
bought a building of the Odd Fellows
for $22,000. The wholesale now owns
this building, worth $30,000, machin
ery and equipment worth $15,000,
By J. P. WARBASSE
goods on hand worth $10,000, and a
steadily growing business. This has
all been done with only $7,000 paid-in
capital. The turnover now amounts
to over $300,000 a year. They began
in a small way and are moving for
ward carefully and cautiously. This
wholesale is as sound as a rock. The
Central Exchange conducts a co-op
erative training school where already
over 100 young men and women have
been given full-time technical courses
in co-operative business administra
tion, theory, and history. This is
the recognized co-operative intel
lectual and executive headquarters
of the northern states. It was the
Central Exchange that took the initi
ative in carrying out the program of
The Co-operative League to establish
a district league in the northern
states.
Three years ago the unmarried
Finns organized the Co-operative
Boarding House, "Tarmo" (meaning
"energy"), to provide better homes
for themselves than the hotels and
boarding houses of Superior fur
nished. They bought a hotel which
for years had been the principal
brothel of Superior. They took this
pest house, cleaned it up and made it
sweet and habitable. Now it is a fine
boarding house with fifty-six rooms,
accommodating about seventy-five
members of the society. The large
dining room furnishes good food; the
kitchen is clean; the rooms are light
and wholesome. The groceries come
from the Co-operative Store, the milk
from the Co-operative Creamery. The
members have pure, clean food and
are protected by Co-operation against
the disease-breeding and demoraliza
tion of the poor profit-making board
ing houses. A dark spot in Superior
has been made a center of light.
Two years ago they bought a build
ing on another corner bearing a large
gilt sign across its front reading
"Ideal Beer Saloon." It cost $32,000.
The Workers' Bank loaned $15,000 on
the building. The place had been an

212 CO-OPERATION
evil resort inhabited largely by
drunks, bums, and politicians. The
Finns established there a co-operative
store. They converted several rooms
into one and took out an entire floor
to make an auditorium with a ceiling
two stories high. This room seats
600 people. There is a stage with an
abundant equipment of .scenery and
stage apparatus. Here a drama is
given twice a week. The actors are
the members of the dramatic society.
This building contains class rooms
where study courses are given. It
contains a large dining hall. An or
chestra, a brass band, and a Turn-
verein also meet here. Every night
this building is a scene of business—
wholesome and enlightening recrea
tion and instruction. The Young
People's League brings together the
healthiest looking group of young
people in the city, occupied in whole
some recreations and activities which
express high ideals. This is the trans
formation the Finns have wrought in
the premises of that ancient Ameri
can institution, "The Ideal Beer
Saloon."
Three years ago the Co-operative
Creamery also was established. This
supplies the people with good milk
which is distributed for food pur
poses. It is the only milk distributed
in Superior with that object.
Two years ago they organized the
Co-operative Mutual Fire Insurance
Company. Although limited by re
strictive laws to the State of Wiscon
sin, it already has over 500 members
who are policy holders, and is in good
financial condition, furnishing insur
ance at cost.
These slow-going, methodical, sim
ple-hearted people from the frozen
north constitute the most enlightened
single large element in Superior. Most
of their thinkers and leaders are the
children of peasants. They are pre
eminently the cultured element of the
city. The population of Superior as a
whole is quite unconscious of the
blessings these people have bestowed
upon it. In fact the "respectable"
population of the city is prejudiced
against these Finns because they fail
to understand them. They live in a
different world.
Most of these activities of the Finns
are carried on by the young people.
On the other hand, the young men
who are the descendants of the old
American families are aimlessly loll
ing on the .street corners, smoking
cigarettes, and killing time at the
movies. Neither the municipality,
the church, the school, nor society
provides adequate enlightenment for
them. But the "Americanization"
movement beats its tom-toms in vain
in the Finnish streets of Superior.
If I were asked what is the best thing
that has come to this city, I should
say "Finnization."
The fact that most of the Finns,
who are doing this telling social work,
call themselves socialists, is not espe
cially significant, even though it may
seem dreadful to the great mass of
complacent old-family Americans.
But even if these Finns voted for the
democratic or republican politicians
—or the prohibitionists for that mat
ter—I should still think well of them
—provided that they keep on with
their co-operative work, which has
nothing at all to do with politics. That
is the most significant thing they
are doing; and it is, indeed, the most
significant thing that any group of
people is doing in Superior or any
where else just at this particular
period of the world's history.
THE ASHLAND SOCIETY
At Ashland, Wisconsin, during the
past fifteen years the workers have
been stung by five different "produc
ers' co-operatives." There have been
two boat-building societies, one flour
mill, one coal dock and one knitting
mill. The workers lost their money
in all of these.
Then they decided to organize a
consumers' co-operative .society. This
really succeeded. They now have a
society with nearly 500 members,
with a turnover of $400,000 a year.
They have a general store, a grocery,
and one of the finest meat markets
in that part of the state. They sent
two delegates to the Chicago congress.
CO-OPERATION
A POOR REASON FOR A CO-OP
ERATIVE STORE
The miners in Illinois want co-op
erative stores in their towns. They
have learned by experience that the
co-operative store is a good thing.
They do not seem keen to make the
store succeed nor to make Co-opera
tors of themselves; they just want a
store. The reason is that they think
the co-operative store keeps down the
prices among the other tradesmen.
There is a co-operative store in Illi
nois that is run with an overhead ex
pense of 35 per cent on the gross busi
ness. The fact that it is run at a loss
does not seem to bother the members.
Most of them do not patronize it at
all. They do their buying at the pri
vate stores. They just want the co
operative store to keep its doors open
and go through the motions of doing
business to serve as a check upon the
private stores. So long as the co
operative is there, the merchants are
careful not to put up prices. If the
co-operative should close, up would go
the cost of living.
The fact is that Illinois has many
stores kept alive by this peculiar mo
tive. The people are not Co-operators,
but they do know that a co-operative
store is a good thing. Some day when
these people are educated to be Co-
operators they will get a sound reason
for wanting co-operative stores; and
then they will have a great Co-opera
tive Movement. Self-interest is a
strong motive. It can be of much
service in building the co-operative
structure.
AN ADVISER FOR GROTON, N. Y.
The Co-operative Association at
Groton, New York, has been running
for nearly two years, but for some
reasons not clear to the Co-operators
themselves, the business kept run
ning behind. There is no other co
operative within scores of miles of
Groton; the leaders there had not had
experience in co-operative enterprises.
In November they finally wrote to
The League for someone to come and
make a detailed analysis and give
them advice.
213
Mr. Long was sent to Groton, and
remained one week. He found a good
store, well located, loyally supported
by the majority of the membership.
The business has been averaging
$1,000 a week from the beginning.
The manager is a good Co-operator
and is well liked by everyone in town.
The trouble was two-fold: lack of
educational work among the members;
and the attempt to apply, in the man
agement of the business, principles
which had been successful a decade
ago but which were quite incapable of
successful application in the face of
chain store competition. For the chain
.store has revolutionized the grocery
business; and grocerymen, whether
they be co-operative or private, are
headed for bankruptcy unless they
realize this fact and adapt themselves
to it.
In accordance with the findings and
advice of The League adviser, Groton
has now cut down the payroll, reor
ganized the delivery service, curtailed
the credit privileges of the members,
made substantial changes in the ar
rangement and appearance of the
store, and inaugurated an educational
policy. The co-operative work in Gro
ton should prosper from this time on
ward if present indications mean any
thing at all.
THE NEXT INTERNATIONAL
CONGRESS
The executive committee of the In
ternational Co-operative Alliance at
its last meeting at Essen, Germany,
in October last, voted to recommend
to the central committee of the Alli
ance that the next congress be held
at Ghent, Belgium, the first week of
September, 1924. The next meeting
of the central committee of the Al
liance, to act upon this recommenda
tion will be held in Hamburg, in April,
1923. The indications are that the
recommendation to hold the congress
in Ghent will be approved by the cen
tral committee. The American mem
ber of the central committee, Dr. War-
basse, will attend the meeting of the
committee in Hamburg in April.

214 CO-OPERATION
CONVENTION OF NORTHERN
STATES CO-OPERATIVE
LEAGUE
The First Annual Convention of
the Northern States Co-operative
League brought together a group of
co-operative experts who had a
wealth of ideas on how to promote
the Movement, and, what is more,
have the capacity for successfully
carrying them out. Many construc
tive proposals were adopted in the
Convention, which was held Octo
ber 22nd and 23rd at Minneapolis,
Minn.
The sessions were presided over
by John Scholtes, President of the
Northern States Co-operative League,
which is a district federation of
co-operatives in Wisconsin and Min
nesota. There were 27 regular dele
gates and 14 fraternal delegates
present. Dr. J. P. Warbasse at
tended the Convention on behalf of
The Co-operative League of the U.
S. A.
One of the most significant things
accomplished by the Convention was
the adoption of a plan for conduct
ing a co-operative school for train
ing co-operative managers, book
keepers, etc. Secretary Alanne pre
sented a general plan .for the estab
lishment of such a school, which
after a thorough discussion was
adopted.
A plan was submitted for conduct
ing a five-week day school to be held
in Minneapolis in the early part of
1923. The school will be financed
by the Northern States League out
of dues from constituent societies
and from tuition fees, students be
ing charged $20 for their courses.
Anyone ambitious to educate him
self so as to more efficiently serve
the Co-operative or the Labor Move
ment and who has the recommen
dation of a bona fide co-operative
or labor organization, is eligible for
admission to the school.
The advisability of setting aside
a co-operative campaign and educa
tional week, during which new sub
scriptions should be solicited for the
publication of The Co-operative
League, membership drives organ
ized, etc., was suggested by presi
dent Scholtes. The convention
adopted this plan for a co-operative
week, and instructed the Executive
Board to put it into effect.
S. Alanne presented the question
of publishing a co-operative year
book in conjunction with other Dis
trict Leagues. After considerable
discussion the Executive Board was
given full powers to act, and was in
structed to take the matter up at the
national congress of The Co-opera
tive League in Chicago.
The necessity of regulating the
relations of the District Leagues to
the national league was suggested
by Secretary Alanne, and a commit
tee was appointed to submit recom
mendations on this subject.
H. V. Nurmi read a paper on a
uniform accounting system for co
operative stores. The plan present
ed by Mr. Nurmi was endorsed, and
it was decided to present the plan
to the national congress.
Eskel Ronn of the Co-operative
Central Exchange discussed the sub
ject of co-operative banking, and
particularly the Workers' Mutual
Savings Bank of Superior, Wis. The
convention went on record as fav
oring co-operative banking and urg
ing Co-operators to patronize exist
ing co-operative banks or credit
institutions. The convention con
sidered the matter of co-operative
jobbing and wholesaling, and urged
co-operatives to support the Co-op
erative Central Exchange of Supe
rior, Wis. The establishment of an
Auditing Department was discussed
and a committee was appointed to
develop a plan.
Delegate Nordby, representing
the Franklin Creamery, spoke on the
growing importance of consumers'
co-operative creameries and an
nounced that his organization now
has a committee to assist in the or
ganization of new co-operative
creameries. The convention voted
to accept the services of the cream
ery committee.
Steps were taken to protect co-
operatives against private concerns
discriminating against them. Com
mittees were appointed on Legisla
tion, Housing, and Coal Distribution.
The report of the committee on
constitution was adopted. The fol
lowing were elected directors of the
Northern States League: F. Burant,
S. Alanne, H. V. Nurmi, J. Scholtes,
P. F. DeMore, Mrs. Ed. Solem, and
Maynard Peterson; while 0. A.
Weeklund, F. Bergreen, P. Kokko-
nen, and K. A. Nurmi were elected
alternate directors. It was decided
to meet at Superior, Wis., at the
next convention.
CO-OPERATOR ELECTED TO U. S.
SENATE
In the elections which took place
November 7th, Co-operators, workers
and farmers of Iowa swept into of
fice by a huge vote Smith W. Brook-
hart. Colonel Brookhart was elected
United States Senator after a spirited
campaign based on three main issues,
viz: (1) the repeal of the iniquitous
Esch-Cummins Transportation Law;
(2) condemnation of the Federal Re
serve Banking system, which was
used to deflate the farmers; and (3)
advocacy of laws encouraging co-op
erative control of production, credit,
marketing, and buying.
According to an article in "The
Nation" of November 1st, by Austin
Haines, of Des Moines, Iowa, Senator-
elect Brookhart "argues for the elim
ination of unnecessary middlemen and
the reduction of the cost of distribu
tion by the adoption of the Rochdale
co-operative system as practiced in
England. In this way he foresees a
Utopian condition in which agricul
tural and industrial labor will each
receive more for its products while
paying less for the products of the
other."
In Pennsylvania a prominent co-
operator, W. D. Hontz, of Lehighton,
was elected to the State Assembly.
Mr. Hontz is a member of the Lehigh
ton Co-operative Association, and was
active in combating the spurious co
operatives which cost the workers of
Pennsylvania hundreds of thousands
of dollars.
CO-OPERATION 215
CO-OPERATORS TO REHABILI
TATE FRANCE
The Germans offered to rebuild the
devastated part of France. They of
fered to work out their indemnity by
actually repairing the damages. But
the French government refused, be
cause the French contractors wanted
to do the building in order to make
their profit. A deadlock developed.
Now we have word that a plan for
the reconstruction work has been
made. But it is not between the two
governments. It is announced that
arrangements have been made be
tween Hugo Stinnes, the German in
dustrial magnate, and a French co
operative society, organized by the
inhabitants in the devastated district,
for the delivery of building materials.
This society is composed of 130,000
members. They hold claims for in
demnity amounting to more than a
billion dollars. Under what is called
the Wiesbaden agreement the bills
for contracts will be paid by the Ger
man government, the government
paying the German contractors in
German curerncy.
German business men and French
Co-operators have been able to do
what the governments and states
men failed in.
LOCKED-OUT RUSH RUN MINERS
SEND MONEY
The Rush Run Co-operative Society con
sists of a small group of migratory coal-
miners of different nationalities, with dif
ferent political and religious status, but
we are all for Co-operation in the economic
field, with the banner 'All for each and
each for all'. On October 25th, we held a
special meeting to review the rich-vein of
program to come before the third congress.
While we are members of the League, we
felt that we could not send a delegate at
this time. The Rush Run coal-mines were
shut September, 1921. Then the great
coal strike came, and we were idle nearly
a whole year. Therefore we were finan
cially crippled.
However, we pledge ourselves to do our
part for the Co-operative Movement, and
will support the League in the future.
Meanwhile we are donating $5 to The Co
operative League's fund.
The Rush Run Society takes the liberty

216 CO-OPERATION
to present resolutions for adoption by the
Congress.
Ryland, Ohio.
MIKE KOTORA, President.
Rush Run Co-operative Society.
(The resolutions presented by the Rush
Run Society demanded the immediate re
lease of political prisoners. The resolu
tions were unanimously adopted by the
Congress.)
ENCOURAGEMENT FROM CAN
ADA
As a member of the Co-operative League,
I am delighted with Co-operation, because
of the enlightenment I get from its pages.
It helps me to push forward the Movement.
It took us three years to get the Calgary
Co-operative Society going. I was a Co-
operator in England before I came to this
country, and according to my views of con-
dithms on this American continent, Co-op
eration is the only salvation for the masses
to combat the privileged classes.
North Lethbridge, Canada.
A. J. INGRAM.
WINNER OF CONTEST
Mr. S. Alanne, educational director of
the Central Exchange, Superior, Wis., and
secretary of the Northern States Co-opera
tive League, won the subscription contest
which closed a few months ago. He sent
in 47 full subscriptions and 135 six-month
subscriptions.
NEW SUBSCRIPTION CONTEST
The Co-operative League is again offer
ing a prize for the largest number of sub
scriptions to "Co-operation" sent in by any
one person between the first of November
and the first of February, 1923. Any one
can compete for the prize, which is a copy
of any book on Co-operatio_n which the
winner may choose from the list of publica
tions of The League or its bibliography.
THE SPIRIT OF CHRISTMAS
The original significance and purpose of
Christmas has become almost completely
obscured by the commercial spirit of our
age. For millions of people today, Christ
mas is little more than a season of the
year when all profit-seeking and exploiting
merchants dress up their stores with red
and green, and shrewd hucksters put on
the dress of Santa Claus so as to wheedle
away from children their precious pennies.
The Co-operative Movement will ulti
mately put the true spirit of Christmas into
our everyday business life. It is already
making a good start.
Why don't you let some of your friends
in on this Good News. Send them "Co
operation" for one year.
THE INDEX FOR 1922
To prevent unnecessary expense, The
League is having the INDEX for Volume
VIII of "Co-operation" printed separately.
Anyone desiring a copy of this index can
get it by writing The League office.
STATEMENT OF THE OWNERSHIP, MANAGEMENT,
CIRCULATION, ETC.. REQUIRED BY THE
ACT or CONGRESS OF AUGUST 24,1912
Of CO-OPERATION, published monthly at New York,
N. Y.. for October 1. 1922.
State of New York,
County of New York, ss.
Before me, a notary public In and for the State
and county aforesaid, personally appeared J. N.
Perkins. who, having been duly fiworn according to
law, deposes and says that she is the business man
ager of the CO-OPERAION and that the following is.
to the best of her knowledge and belief, a true
statement of the ownership, management (and if a
daily paper, the circulation), etc., of the aforesaid
publication for the date shown in the above caption,
required by the Act of August 24, 1912, embodied in
section 443, Postal Laws and Regulations, printed
on the reverse of this form, to wit:
1. That the names and addresses of the publisher,
editor, managing editor, and business managers are:
Publisher, The Co-operative League of America,
167 West 12th Street. New York City.
Editor, Jamea P. Warbasse,
167 West 12th Street, New York City.
Managing Editor, Albert Sonnichsen,
167 West 12th Street. New York City.
Business Manager, J. N. Perkins,
167 West 12th Street, New York City.
2. That the owners are: (Give names and addresses
of individual owners, or, if a corporation, give its
name and the names and addresses of stockholders
owning or holding 1 per cent or more of the total
amount of stock.)
The Co-operative League of America,
167 West 12th Street, New Vork City
James P. Warbasse, President,
167 West 12th Street, New York City.
A. P. Bower, Vice-President,
167 West 12th Street. New York City
Waldemar Niemela, Treasurer,
167 West 12th Street, New York City
(Organization members, 1,000.)
3. That the known bondholders, mortgagees, and
other security holders owning or holding 1 per cent
or more of total amount of bonds, mortgages, or
other securities are: (If there are none, fio state.)
None.
4. That the two paragraphs next above, giving the
names of the owners, stockholders, and security hold
ers, if any, contain not only the list of stockholders
and security holders as they appear upon the books of
the company but also, in cases where the stockholder
or security holder appears upon the books of the
company as trustee or in any other fiduciary relation,
the name of the person or corporation for whom such
trustee is acting, is given; also that the said two
paragraphs contain statements embracing affiant's
full knowledge and belief as to the circumstances and
conditions under which stockholders and security
holders who do not appear upon the books of the
company as trustees, hold stock and securities in a
capacity other than that of a bona fide owner; and
this affiant has no reason to believe that any other
person, association, or corporation has any interest
direct or indirect in the said stock, bonds, or other
securities than as so stated by him.
5. That the average number of copies of each is
sue of this publication sold or distributed, through
the mails or otherwise, to paid subscribers during
the six months preceding the date shown above is
...... ....(This information is required from daily
publications only.)
J. N. PERKINS. Business Manager.
Sworn to and subscribed before me this 22nd day of
September. 1922.
(Seal) WALTER C. CAMPBELL.
(My commission expires March 30th. 1924.)
3.
7.
38.
39.
4.
6.
6.
8.
9.
27.
2.
14.
16.
16.
17.
16.
11.
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34.
48.
42.
CO-OPERATION
PUBLICATIONS
of THE CO-OPERATIVE LEAGUE
HISTORICAL
Story of Co-operation ...................................,.............$ .10
British Co-operative Movement ........................................ .10
Co'cperative Consumers' Movement in the United States............... .06
Consumers' Co-operative Societies in IN. Y. State, (Published toy Con
sumers' League) .................................................. .10
TECHNICAL
Per Copy Per 100
$6.00
6.00
4.00
How to Start and Run a Rochdale Co-operative Society.................. .10 4.00
System of Store Records and Accounts................................ .50
A Model Constitution and By-Laws for a Co-operative Society........... .06 2.60
Co-operative Education. Duties of Educational Committee Denned...... .10
How to Start a Co-operative Wholesale................................ .10
Why Co-operative Stores Fail ......................................... .02 1.00
Co-operative Store Management ...................................... .10
How to Start and Run a Women's Guild................................ .06
How to Organize a District Co-operative League ........................ .10
MISCELLANEOUS
Model Co-op State Law ............................................... .10
Syllabus for Course 'of Lectures, with References and Bibliography.... 26
Producers' Co-operative Industries ................................... .10
Control of Industry by the People Through the Co-operative Movement... .10
Credit Union and Co-operative Store................................... .06 1.76
Co-operative Movement (Yiddish) .................................... .02 1.26
Co-operative Housing ................................................. .10
Co-op Homes for Europe's Homeless ................................. .10
ONE-PAGE LEAFLETS
(One cent each; 60 cents per 100; $2.60 per 600; $4 per 1,000)
(1) Principles and Aims of The Co-operative League; (17) Do You Know why You Should Be a
Co-operator; (20) Why Loyalty Is Necessary; (21) Cost and Crime ef Credit; (22) A Real
Co-operator; (25) Resolutions Adopted by A. F. of L.; (26) Factory Workers Co-operate!;
(28) Do You Know About Co-operation in Europe?; (40) Have You a Committee on Educa
tion and Recreation?; (44) What Is the Co-operative Movement?; (45) Schools and
Stores; (47) A Man's Right to a Job; (48) Tips to Co-operators; (49) Think It Over.
MONTHLY PUBLICATIONS
CO-OPEEATION—(In bundle lots, $7.60 per hundred). Subscription, per year......... .$1.00
HOME CO-OPERATOR, 4 pages ................................................ $1 per 100
INTERNATIONAL CO-OPERATIVE BULLETIN (Pub. by The I. C. A.).......per year, fl.50
BOOKS
The following books are recommended as containing the best discussions of the modern
Co-operative Movement. They may be ordered through The League:
Bubnoff, J. B.: The Co-operative Movement in Russia, 1917...........................$1.26
Faber, Harald: Co-operation in Danish Agriculture, 1918.............................. 2.76
Flanagan, J. A.: Wholesale Co-operation in Scotland, 1920............................ 2.00
Gebhard, Hannes: Co-operation in Finland, 1916...................................... 2.00
Gide, C.: Consumers' Co-operative Societies, 1921...................................... 2.60
Gide, C.: Consumers' Co-operative Societies, American edition and 'notes, 1922......... 3.00
Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, $2.00; paper
bound ........................................................................... .60
Howe, Fred C.: Denmark, a Co-operative Commonwealth, 1921......................... 2.00
Maxwell, Wm.: History of Co-operation in Scotland, 1910............................... 2.00
Nicholson, Isa: Our Story ............................................................ .26
Powell, G. Harold: Co-operation in Agriculture. Macmillan ........................... 1.60
Redfern, Percy: The Story of the C. W. S............................................. 2.00
Redfern, Percy: The Consumers' Place in Society, 1920............................... 1.00
Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918...................... 1.60
Smith-Gordon: Co-operation in Many Lands, 1920..................................... 1.50
Sonnichsen, Albert: Consumere' Co-operation, 1919. Cloth bound, $1.76; paper bound... .76
Stolinsky, A.: The Co-operative Movement. In Yiddish................................ 1.00
Webb, B. and S.: The Consumers' Co-operative Movement, 1921........................ E.OO
Webb, Catherine: Industrial Co-operation, 1917 ...................................... 1.60
Woolf, Leonard: Co-operation and the Future of Industry ........................... 1.60
Woolf, L.: Socialism and Co-operation ............................................... 1.60
"The Co-operative Consumer" and "Co-operation," III (1917), VI (1920), VII (1921),
VIH (1922) ..................................................................... L26
Transactions of Second American Co-operative Congress, 1920........................... 1.00
Transactions of Third American Co-operative Congress, 1922..........................
The People's Year Book, 1922...................................................... .76
(Ten cents postage should be added for books which cost more than $2.00, and five cents
for the smaller books.)

THE CO-OPERATIVE LEAGUE
(Member of The International Co-operative Alliance)
167 West 12th Street, New -York *
An educational organization for teaching the history, principles, methods and aims of the
Co-operative Movement and for the promotion of Co-operation In the United States.
Join The League and thus help promote the educational work of the Co-operative
Movement. Individual Membership, $1.00 a year. Subscribe for CO-OPERATION,
the Monthly Magazine of The League, and keep in touch with the Movement.
FrirlnQPrl find S! for Subscription for CO-OPERATION, $1.00.
juiciosea nna $........... ior Meinber8h;p £n The LEAGUE> $ 1 .00.
Name.................................................................
Address.
Date....
Co-operative Central Exchange
Wholesale Grocers and Jobbers,
Bakers
We supply (roods to Co-operative Societies ONLY
We are owned and controlled by Co-operative
Societies.
We are organized to enable Co-operative Societies
to do collectively what tbey cannot do Indi
vidually.
Co-operative Central Exchange
Offices, Warehouses and Plant:
Winter Street and Ogden Ave.,
SUPERIOR, WIS.
Co-operators' Ltd. Mutual Fire Insurance Co.
Is now writing Insurance In State of Wisconsin.
The Canadian Co-operator
Brantford, Ontario,
Canada
The organ ef the Canadian Co-opera
tive Movement, owned by and con
ducted under tbe auspices of The
Co-operative Union at Canada.
Published monthly; 7Sc per annum
MOVING PICTURES
and
Stereopticon Lectures
may be rented from
THE CO-OPERATIVE LEAGUE
167 West 12th St., New York City
1. "Sotte Examples of English Co-operation."
Moving pictures of factory processes (two
reels) ................................35.00
2. "Co-operatisn In the United States."
With 63 stereoptloon views ........... .(3.00
3. "The Co-operative Movement In Bnsssia."
With 3D colored Stereopticon views....93.00
Co-operation in Scotland
In no part of the world la Co-operation further
developed, or more successfully practised than In
Scotland. If you wish to keep in touch, read
"The Scottish Co-operator"
(Published Weekly)
Subscription: Tear 12 sh.; half-year, 6 oh.
Address, 119 Paisley Road,
Glasgow, Scotland
THE PRODUCER
Issued Monthly Price 3d.
If you want to keep in tonch with
business, organization, administra
tive affairs, and problems of the
British Co-operative Movement,
read THE PRODUCER.
Published by
Co-operative Wholesale Society, Inc.
1 Balloon Street, Manchester.
Post free 4 sh. 6d. a year.
The Trade and Technical Organ ef British
Co-operation.
THE HOME CO-OPERATOR
A four-page magazine for
use in co-operative societies.
Issued monthly, in bundles, $1 per hundred.
Published by
The Co-operative League
Publishing Office, Willimantic, Conn. Al
bert Sonnichsen, Managing Editor.
I