CO-OPERATION The source of this uncorrected OCR text may be viewed as a digital facsimile at: http://fax.libs.uga.edu/ PUBLISHED MONTHLY BY The Co-operative League of U. S. A. VOLUME XII January—December 1926 •f CO-OPERATIVE LEAGUE OF U. S. A. 167 West 12th Street, New York City 1926 INDEX A Accounting, Cost ................................................................ 56 Adams, Mass. .......................-...........••••••••••-•••••••••••••••..•.•• 122 Agricultural Societies in France................................................... 29 Alanne, V. S. ................................................................203, 228 Alberta Co-operative League ...................................................... 192 Alien, Thomas ................................................................... 213 Amalgamated Credit Union .....................................................73, 175 American Consumers' Alliance ..................................................... 156 American Institute of Co-operation................................................ 171 Annual Financial Eeport of Co-operative League.................................... 217 Auditing Bureau .............................................................. 44, 76 Auditing Dept., Kansas Farmers' Union............................................ 94 Auditing Not Enough ............................................................ 26 B Bakery, Co-operative .......................................................... 13, 61 Banks, Co-operative ...........................................................63, 74 Banks, Labor .............................................................27, 49, 188 Bankers and Christians .......................................................... 45 Bankers Unfriendly to Co-operative Banks........................................... 53 Bearcreek, Montana .............................................................. 194 Belmont, Mass. .................................................................. 122 Benld, Illinois ................................................................... 110 Bergengren, Eoy F. ..........................................................205, 229 Berlin Co-operative Theatre ....................................................... 191 Blaha, Joseph ................................................................... 3 Bjorkman, C. E. ................................................................. 139 Blackwell, A. S. ................................................................. 139 Blauvelt, A. LaT. ................................................................ 69 Bohemian Co-operators in U. S..................................................... 3 Book Eeviews ..........................................15, 116, 126, 136, 177, 195, 224 Book-shop, Co-operative .......................................................... 157 Books for Christmas Sale......................................................... 216 Brady, Peter J. ................................................................. 27 Branch, E. E. .....................:............................................. 229 Bread Consumers' Dollar ......................................................... 209 Bread Trust ..................................................................... 13 Breth, J. A. ..................................................................... 118 Bristol, Ct. ...................................................................... 124 British Congress Eesolution Against War........................................... 132 British Co-operative Problems .................................................... 25 British Co-operatives . . ........................................................ 34, 192 British Co-operatives Help Towns.................................................. 105 British Co-operative Employment .................................................. 71 British Labor Leader on Co-operation.............................................. 50 British Strikes . . . ............................................................... 131 Brookhart, Smith W. ............................................................. 205 Brooklyn Workers Home .......................................................... 76 Brownsville Bakery .............................................................. 62 Building Loan Association ........................................................ 177 Burandt, F. F. ............................................................... 206, 230 Business Methods, Sound ......................................................... 44 INDEX Page Camp, A Co-operative ........................................................ 173, 223 Cambridge, Mass. ..................................................-••••••••••••• 122 Canadian Co-operative Union ................................................... 26, 192 Capital, Co-operative, Helps Private Business........................................ 109 Cartoon Contest ..............................................................-18, 158 Central States Co-operative League........................................ 135, 158, 198 Chain Store Profits .............................................................. 112 Cheel, M. W. ...............................................................-147, 162 Cherry Valley, Pa., E. E. & E. C. Association......................................... 76 Christopher, HI., Co-op. Undertaking Assn........................................... 157 Churches on Co-operation ......................................................... Ill Classes in Co-operative Societies, All............................................... 144 Cleveland, O., Czecho-Slovak Co-operatives........................................... 74 Clifton, N. J. .................................................................... 124 Clinton, Mass. ...............................................................110, 123 Cloquet, Minn. ................................................................... 141 Coal, British: How About Co-operation............................................. 169 Coal, Cost of .................................................................... 126 Coal, How Co-operatives Save on ............. 1..................................... 50 Coal Mine, Shilbottle ............................................................. 10 Colleges, A Trip Among N. E...................................................... 160 Combinations, Large ............................................................. 84 Commercialism in Co-operative Movement........................................... 106 Compagnie Nationale du Ehone .................................................... 108 Competitors, Co-operate with Your ................................................. 84 Compulsory Co-operation ......................................................... 26 Conference of Eastern Societies..................................................... 97 Congress, Fifth ...............................91, 133, 161, 167, 185, 202, 207, 226, 228 Consumers' Co-op. Credit Union ................................................... 76 Contests Among School Children.................................................... 86 Contrasts, Co-operative ........................................................... 147 Co-operation and the Labor Movement.............................................. 229 Co-operation in the U. S. ..................................................... .226, 227 Co-operation Pays for Minnesota Highways......................................... 129 Co-operative Central Exchange .............................................. 33, 55, 113 Co-operative Home Builders in N. Y................................................ 22 Co-operative Housing De Luxe .................................................... 222 Co-operative Educational Association .............................................. 31 Co-operative League . . .......................................................... 226 Co-operative League Officers ................................................... 230, 231 Co-operative Marketing, Principles and Practices of.......................... 94, 210, 224 Co-operative Theatre . . ...................................................... 106, 191 Co-operative Beview, The ......................................................... 193 Co-operative Union of Great Britain............................................... 109 Corporation Versus Co-operation in Cost of Coal..................................... 126 Correspondence File ............................ 17, 18, 38, 58, 79, 99, 118, 138, 199, 239 Cost Accounting System .......................................................... 56 Cotterill, A. E. .................................................................. 229 Course of Development of Socialism (Book Eeview)................................. 116 Creamery, Co-operative (Waukegan) ............................................... 82 Creamery, Franklin Co-operative (Minneapolis)...........32, 55, 72, 95, 106, 148, 182, 228 Credit Union, National, Extension Bureau .......................................... 229 Credit Unions ..............................................12, 53, 73, 76, 95, 175, 229 Critcliley, Joseph ................................................................ 225 Curing Ills with Bills. ............................................................ 44 C. W. S. Jubilee in New York...................................................... Ill Czecho-Slovak Co-operatives in Cleveland, O. ........................................ 74 INDEX D Danish Co-operative Bank ......................................................... 50 Davies, John E., Speaks on Co-operation............................................. 4 Debs, Eugene ................................................................... 225 Dillonvale, O. .................................................................... 1 Directors' Page ................................................. .14, 34, 159, 179, 218 Disarmament, The Need for Total.................................................. 153 Discipline Among Co-operative Workers ............................................. 125 District Leagues .................................35, 55, 75, 95, 113, 158, 178, 197, 228 Dollar Distribution ............................................................... 176 Eastern States Co-operatives .................................. .55, 75, 97, 114, 121, 197 Economics, Co-operative .......................................................... 89 Educational Campaign at Waukegan............................................... 215 Educational Work at Minneapolis............................................... 72, 95 Electric Light and Power, Co-operative. ............................................ 93 Electric Transmission, Farmers' .................................................. 13 Emme, J. F. ..................................................................... 119 Employment in Non-Profit Business................................................ 71 Endowment Fund, League ........................................................ 117 Epstein, Abraham ............................................................... 175 Failures Among Co-operatives.................................................. 110, 112 Fairhope, Ala. ................................................................... 75 Fake Co-operative League ...................................................... 94, 157 Farmer-Labor Summer School ..................................................... 156 Farmer, Living Wages for......................................................... 155 Farmer Viewpoint on Co-operation................................................. 87 Farmers As Co-operators ......................................................... 7 Farmers, Co-operative, in Oklahoma................................................. 174. Farmers' Co-operative Wholesale in Nebraska....................................... 52 Farmers In Eevolt ............................................................... 214 Farmers' Mutual Telephone, Washington........................................... 41 Farmers of Alberta .............................................................. 187 Farmers' Organizations .......................................................... Ill Farmers Union Mutual Life Insurance Co........................................... 92 Farmers Win Fight for Bank ..................................................... 176 Fascist Government, Protest to .................................................... 74 Fascist Persecution, Eesolution on ................................................. 52 Fascisti, Does Mexico Have Its..................................................... 109 Fat and Lean Years in Co-operative Movement....................................... 105 Financing Co-operative Housing ................................................... 223 Finland, Co-operators in .......................................................... 108 Finnish Co-operative Courses ...................................................... 113 Finnish Co-operative Trading Assn. ................................................ 13 First Co-operative Convention, 1914................................................ 210 Fitchburg, Mass. ...................................................... 32, 68, 102, 123 Foreign News ........................................9, 50, 70, 108, 131, 162, 191, 212 Fraley, Edgar S. ................................................................. 79 Franklin Co-operative Creamery ........................ 32, 55, 72, 95, 106, 148, 182, 228 Franklin Women's Guild ...................................:..................... 176 French Co-operative Societies ...................................................... 29 Fundamentals, Getting Close to the................................................. 224 INDEX Page INDEX K Page Gardner, Mass., United Co-operative Society......................................... 77 Gasoline, Co-operative ............................................................ 112 German Cities Join Co-operative Societies........................................... 125 German Industrial Productive Societies............................................. 1-54 Germany, Consumers' Co-op. Movement in........................................... 137 Get-Eich-Quick Co-operators ....................................................... 95 Giant Power Under Co-operative Control............................................ 108 Gide, Charles ................................................................133, 209 Goss, Albert S. ...............................................................203, 231 Governed, It Costs Us a Lot to Be.................................................. 86 Government and Co-operative Control .............................................. 108 Government to Supply Pood ....................................................... 45 Graham, James D. ............................................................... 214 Grange Exchange, N". Y........................................................... 72 Grange, Washington ...........:......................-........................ 148, 162 Greenhead, England .............................................................. 193 Grocers, Lots of ................................................................. 208 H Halonen, George .............................................................204, 229 Halten, Olaf ..................................................................... 206 Harrisville, E. I. ................................................................. 123 Herron, L. S. ..................................................................58, 87 Highways, Minnesota ............................................................ 129 Hillsboro Co-operative Association, Illinois.........................:................ 193 History, Making ................................................................. 210 Holmes, Emil .................................................................... 18 Housing Bill ..................................................................64, 73 Housing, Co-operative (N. Y.) ...........................................21, 23, 78, 222 Huddersfield, England ............................................................ 192 Hull, J. T. ...................................................................... 230 Ideal Co-operative Society ......................................................... 213 Illinois Miners . . ............................................................... 193 Illinois Societies . . .......................................................... 149, 157 Income Tax ..................................................................... 53 Industrial Arts Co-operative ...................................................... 69 Installment Business ............................................................. 16G Institute of Co-operation .......................................................... 171 Insurance . . ........................................... .............54, 92, 154, 229 International Co-operative Congress ............................................ 230, 234 International Co-operative School ................................................. 92 International Co-operative Women's Guild.......................................... 152 International Co-operators' Day ............................................... 103, 130 Iowa Farmers' Union ......................................................... 149, 174 Italy, Co-operative Movement In.................................................. 4, 125 Jaeggi, Bernhard ................................................................ 70 Jardine, W. M. .................................................................. 187 Johnson, Geo. J. ................................................................. 113 Journalism, Good ................................................................ 32 Kansas Farmers Union ........................................................... 94 Keen, Geo. ...........................................................-26, 44, 228,232 Keeney, Pres., Neb. Farmers Union................................................ 225 Labor and Capital Co-operate ..................................................... 194 Labor and Co-operative Movement ................................... <............. 229 Labor Bank on Wrong Side....................................................... 188 Labor Becoming Less Militant, Is................................................. 175 Labor Leader on Producers' and Consumers' C. M................................ 127, 146 Labor Party On Co-operation ..................................................... 10 Landauer, Walter ..................'.............................................. 58 Lavergne, Bernard ............................................................... 29 Laws ....................................................................11, 26, 31 Leaders, Why Have We Lost Those................................................. 165 Lectures, At Co-operative Educational Assn., Bklyn. ................................. 64 Lecturing, I Go A................................................................ 150 Leomiuster, Mass. ............................................................... 123 Les Co-operatives de Consommation en France........................................ 29 Liberty . . ...................................................................... 24 Life Insurance ........................................................54, 92, 154, 229 Life, Not Wages ................................................................ 65 Lindeman, E. C. ................................................................. 6 Literature, Sale of Co-operative.................................................... 209 Litho Credit Union .............................................................. 77 Loan Association, Building ........................................................ 177 Long, C. .............4, 5, 26, 46, 65, 86, 106, 126, 145., 165, 188, 202, 208, 210, 225, 230 M McNary-Haugen Bill ............................................................. 44 Maiden, Mass., Progressive Workmen's Credit Union................................. 95 Management, Store ................................................ 14, 34, 44, 179, 218 Managers' Conference ............................................................ 186 Malmgren, Carl ................................................................. 118 Manitoba Co-operative Wheat Producers.........................................214, 230 Marketing, Co-operative ................................................... 94, 196, 229 Maspeth, N. Y. .................................................................. 124 Maynard, Mass., United Co-op. Society............................................. 77 Meddling, Some More Official...................................................... 50 Mercer, T. W. ................................................................ 10, 138 Mexico, In ...................................................................... 51, 109 Middleman, The ........................................ .^ ...................... 13, 187 Milk, Co-operative ...........'................................................. 106, 182 Milk, Uncomplicated ............................................................ 104 Milk Wagon Drivers' Union....................................................... 65 Mill, Co-operative ................................................................ 162 Mine Disaster ................................................................... 234 Minnesota and Its Many Co-operatives.............................................. 182 Moore, U. G. ..................................................................46, 118 Morann, Pa., Co-operative Association.............................................. 76 Morrow, Should We Take Thought of the.......................................... 25 Movies .....................................................................223, 231 Mussolini . . .................................................................. 9 Muste, A. J. ..................................................................... 66 INDEX N Page Nearing, Scott ................................................................... 38 Nebraska Farmers Union State Exchange........................................... 52 New Co-operative Co. ............................................................. 2 New England Co-operatives ....................................................... 122 New Era Association ..........................................................54, 229 New Haven, Ct. ................................................................. 124 New York Co-operatives .......................................................... 31 • Niemela, W. ...................................................................3, 199 Nitgedaiget, Camp ............................................................... 173 Nordby, H. I. ................................................................203, 228 Northern States Co-operative League..................35, 75, 114, 135, 158, 178, 1&5-, 198 Norwood, Mass., United Co-op. Society.............................................. 78 Nova Scotia Miners Flock to Co-operation.......................................... 51 Nurmi, H. V. .................................................................... 228 0 Oberoutcheff, C. M. .............................................................. 17 Oerne, Anders ................................................................... 51 Official, The Co-operative ......................................................... 25 Ohio Co-operative Banks Among the First.......................................... 1, 2 Oklahoma . ..................................................................... 174 Pascoag, R. I. ................................................................... ... Passaic Strikers Aided ........................................................... 174 Paterson, N. J. .................................................................. 124 Patronage Dividends . . .......................................................... 155 Patronage Voting . . ............................................................. 188 Penetrating Co-operative Jungle .................................................. 122 Pittsfield, Mass. ................................................................. 122 Place of Producers' and Consumers' Movement...................................... 6 Poisson, Ernest .................................................................. 116 Poland . . ....................................................................... 71 Political Neutrality .............................................................. 93 President's Address .............................................................. 226 Prices, Reducing ................................................................. 212 Producers' and Consumers' Co-operative Movement...... 5, 6, 27, 46, 66, 87, 106, 127, 146, 189, 232 Producers' Co-operative Industries in U. S. ......................................... 215 "Produktion" . . ............................................................... 154 Profitable Industry .............................................................. 224 Progressive Workmen's Credit Union............................................... 95 Prosperity, Is the Auto an Index of................................................ 224 Punishing Our Bad Co-operators................................................... 145 Questions on Co-operative Movement................................................ 9 R Kansom, F. W. .................................................................. 230 Eecreation . . . .................................................................. 159 Eecreation, with Co-op. Housing. ................................................... 223 Eegli, W. E. ................................................................ -228, 235 Eeno, Milo ...................................................................... 229 Resolutions ...............................................................52, 93, 230 INDEX Eestaurants . . .....................-••••••..•••••-•••.••••••••••..••..•..•.•..••. 12 Retail Stores Fail ................................................................ 112 Eoanoke, Illinois ................................................................ 193 Bonn, Eskel .................................................................204, 229 Russia ..............................................................38, 94, 172, 213 Sagamore, Mass. ................................................................. 123 Sales, Increase of ................................................................ 24 Saylesville, R. I. ................................................................. 123 School, A Consumers' Co-operative..............................................31, 113 School, International Co-operative .................................................. 92 School, Summer .................................................................. 156 Seattle, Wash. ................................................................... 162 Seward, Gertrude C. .............................................................. 169 Shilbottle, Eng., Coal Mine........................................................ 10 Shortening Working Hours ....................................................... 11 Siegler, A. A. ................................................................... 229 Single Tax ..................... ............................................... 75 Socialism, Development of ........................................................ 116 Soo Society Passes Half Million Mark.............................................. 93 So. Framingham, Mass. .......................................................... 123 Sparta, 111. ...................................................................... 157 Stafford Springs, Ct., Workers' Co-op. Union........................................ 77 Statement of Co-operative League.......:.......................................... 57 Statistics . . .......................................................... 94, 95, 110, 135 Stockholders' Control ............................................................ 208 Stoike, Carl ..................................................................... 15 Students' Beading List .......................................................... 213 Subscription Contest Winner ...................................................... 33 Success Turned to Failure......................................................... 144 Summer School .................................................................. 156 Surplus in 1925 ................................................................. 105 Sweden Has a, Co-operative Postmaster General...................................... 51 Swiss Co-operative Societies ...................................................... 70 Tax Collector on the Escutcheon................................................... 85 Taxes Saved for Miners' Co-operative.............................................. 53 Telephones, Co-operative ....................................................... 42, 52 Tenhunen, Matti ................................................................. 204 Terryville, Ct. ................................................................... 123 Theatre, Co-operative ........................................................ .106, 191 Toksvig, P. K. .................................................................. 79 Tombstone Inscription ........................................................... 71 Town, Co-operators Help the. ...................................................... 10-5 Trade Unionists Become Capitalists................................................ 65 Trade Unionists, Duty of......................................................... 50 Turnover of Merchandise ............................................... .... 179 238 Twenty-weeks Clubs ............................................................. 34 U Undertakers . . .................................................. 157 United Co-operatives .................................................. .. ... - 75 United Workers' Co-op. Assn. (N. Y. C.) ......................................... 222 Utica, N. Y., Co-operative Society.................................................. 78 INDEX Page V Voting . . ....................................................................... 188 W Wage System ................................................................... 133 Wages and Dividends on the N. Y. Times........................................... 216 Walker, John H. ............................................................. 127, 146 Wall Street Paper on Capitalism.................................................. 85 War, Eesolution Against ......................................................... 132 Warbasse, A. D. ................................................................. 29 Warbasse, J. P. ........25, 26, 45, 6S, 85, 105, 125, 144, 150, 166, 187, 202, 209, 224, 226 Ward, Gordon H. .........................................................38, 106, 171 Warinner, A. W. ..................................................2, 189, 203, 228, 239 Warning, Timely ................................................................ 210 Water Power .................................................................... 108 Waukegan, Illinois ........................................................ 32, 82, 215 What Cheer, Iowa ............................................................... 194 What it Means for Telephone Users to Co-operate.................................... 42 Wheat . . ....................................................................... 235 Wholesales, Co-operative ...................................33, 52, 54, 75, 111, 162, 174 Wildbrandt, E. .................................................................. 116 Winchendon, Mass. ............................................................... 123 Women Keal Co-operators in Bussia................................................. 172 Women's Guild .......................................................... 152, 172, 176 Woodland, Wash. ................................................................ 148 Workers' Co-op. Union, Stafford Springs, Ct......................................... 77 Y Year Book ....................................................................18, 230 Young, Owen D. ................................................................. 224 CHJIOTION A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in voluntary association, produce and distribute for their own use the things they need. Published Monthly by THE CO-OPERATIVE LEAGUE 167 West 12th Street, New York City J. P. WARBASSE, Editor Entered as Second Class matter, December 19, 1917, at the Post Office at New York, N. Y., under the Act of VOL. XII, No. 1 JANUARY, 1926 10 CENTS .1' The largest 'business block in Dillonvale, Ohio, a mining town of about 1500 people, is one of the pieces of real estate owned by the New Co-operatwe Company. At the right of the picture is tJie space occupied by the railroad company, which rents its ticket office, waiting room and baggage room from the Co-operators. At the extreme left, barely discernible in thte photograph, is the headquarters of The First National Sank of Dillonvale, which also pays rent to the Co-operative Company. Between the banh and the railroad, office are the entrances to the three centra^ilW Kii Uf—Ji^Co-operative: the grocery store,' the butcher shop, and tlie general storj^fofc sa^'df^f^^ods, shoes, clothing and house The second story over tlf'se stores is also used og the last-named department. LIBRARY CO-OPERATION An Ohio Co-operative Ranks Among the First in the Country "P\ID you ever hear of Dillonvale, Ohio? Perhaps some of you can vaguely recall having heard it briefly mentioned in some co-operative publication or meeting in the past but most of you never heard of it before. And it is the home of one of the strongest and most successful co-operative store societies in America. . Dillonvale is a little mining town tucked away among the hills of Eastern Ohio. Here a group of some four hundred Bohemian miners have attained a degree of success in the development arid operation of their own co-operative business enterprises that entitles this little town to be designated as one of the most important points on the co-operative map of this country. They have been content, however, to spend their time and talents entirely in quietly and diligently building up and firmly establishing their movement rather than shouting their success from the house-tops. They have gone about this task in such a matter of fact way and with so little bluster or ostentation that they have attracted very little attention from the outside world, co-operative or otherwise, and. they have not sought the meager publicity their efforts have received in the past. The store was started in 1908 when thirty Bohemian miners got together and decided they were going to have a co-operative store regardless of how small it might be and in spite of difficulties that confronted them. They each contributed $10 to the original capital after which they proceeded to gather, from whatever source they could, the material with which to erect a store building. By having each member donating his time arid labor on Sundays and days when the mines were idle, they soon had a small building constructed. In fact, it was a very small building and could in no way lay claim to architectural beauty or grandeur but it was their own and that fact compensated for many other deficiencies. While the building was under construction they were gradually adding to their membership and capital and by the time it was completed they were able to purchase the few' essential items of equipment which they could not build with their own hands, and a small stock of groceries. The first year's sales amounted to $4,000. To-day, their sales far exceed that amount every week in the year, their monthly average for this year being approximately $25,000. The Company owns five pieces of business property comprising four store buildings and a large warehouse. One of these is the largest and most valuable business property in the town. It is a two-story brick structure covering an entire block on the main business street. In this building is housed one of their four grocery stores, meat market, dry goods, shoes, clothing, and house furnish- ings departments, while the balance of the building is occupied by the town's only bank, the railroad station and waiting rooms and a pool hall. This is perhaps the one spot on earth where the bank and the railroad are tenants of, and pay tribute to the co-operative society. In addition to this grocery store, they operate another one in Dillonvale, one at Piney Pork and one at Bradley, both of which are near-by mining camps. They also operate a hardware store and own their own hall arid club rooms. The hall can also be used as a theater as it is equipped with stage and scenery. This is used for the company's social, educational and business meetings and func tions and also as a meeting place for practically all the labor unions, radical political organizations and foreign secret societies. CO-OPERATION The butcher shop operated by the Co-operative is by far the neatest and best in the town, and the prices and quality of goods handled far more attractive than those of private competitors. The stores handle groceries, meats, dry goods, clothing, shoes, ladies' ready- to-wear, millinery, furniture, draperies, floor coverings, shelf and heavy hard ware, automobile accessories including gasoline and oils, lumber, roofing, lime, cement, hay, grain and feeds of all kinds. They purchase hay, grain, feed, cement, roofing, lumber, flour and sugar in car-load lots, their turnover in these commodities for this year amovinting to approximately sixty cars. In their sixteen years of painstaking effort they have built up a working capital of $95,000 and a surplus reserve of $78,000. Their capital consists of $22,000 share and $73,000 loan capital. The capital and surplus is invested in business property, equipment and merchandise, their physical inventory on June 30th of this year showing merchandise on hand to the value of $96,000. While attaining this enviable financial condition they have regularly returned from 6 per cent to 9 per cent purchase rebates to their members every half year and have paid a 2 per cent purchase rebate to non-members. The New Co-operative Company has always been a member of The League and one of its strongest supporters. Joseph Blaha, who has been with the Com pany as manager since the beginning, shares the distinction with W. Niemela of Maynard, Mass., of being the only managers in the country who have attended every congress of The League. We hear much about the Finns who co-operate in America. We hear about the Jewish co-operators, and those of other foreign language groups. The Bohemians who succeed with co-operative stores are by no means all in Dillonvale. Chicago Bohemians have a society which has had as many as five stores at one time, though lately two of these have been eliminated and the work concentrated. Cleveland co-operators from the same country, in the Workingmen's Co-operative Company, operate six grocery and meat stores and are most successful. Other smaller groups of these people are contributing their share to the pioneering efforts of co-operators of all nationalities who strive to build a strong movement in America. In the future, when you hear of Dillonvale, let it bring to your mind a picture of outstanding co-operative store success in America. There is little doubt but that this Co-operative Company will continue to stand as one among the best of our living refutations of the oft repeated statement that co-operative stores cannot thrive in the atmosphere of our highly developed super-individual ism. They have proved beyond a doubt, as many other groups are doing, that by intelligent and dilligent application to the task before them and by backing this up with the highest type of loyalty and fraternalism, success equal to that attained in any European country is possible in America. A. W. WAEINNEE. CO-OPERATION CO-OPERATION Vital Issues CO-OPERATION BEING CRUSHED IN ITALY npHE LEGA NAZIONALE DELLE CO-OPEKA- 1 TIVE of Italy, the Educational Union of that country, had a membership of 8,000 societies before the Fascisti came into power. By the beginning of 1924 the number had been reduced to 4,600. In the autumn of 1925 the number had shrunk to 1,000. And now is announced the entire destruction of the League by the Fascisti. When the Fascisti first began their reign of terror, the co-operatives were subjected to the same attacks as the labor headquarters and Socialist and Com munist buildings. Many of the stores were burned, officials were beaten, many killed, others exiled. And this persecu tion continued unabated for months. Meanwhile the Government began the organization of its own Fascist Co operative Union, and many of the co operatives were forced to join this. In November of 1925 came the news that the offices of the Lega Nazionale had been seized by the Police Prefect of Milan. Immediately telegrams and cablegrams of protest were sent from the offices of the International Co-opera tive Alliance, and many of the Co-opera tive Unions of the various countries. The cablegram of The Co-operative League of the U. S. A. was as follows: "Italian Prime Minister, Home, Italy: The Co-operative League of United States of America asks you to protect Lega Nazionale delle Cooperative. Warbasse, President." Meanwhile the President of the Lega Nazionale, Antonio Vergnanini, sends a message of greetings to the co-operatives of other countries, closing with these words: "Let us remain united and wait with con fidence. The great struggle between the two opposing forces of speculation and the con sumers becomes every day more extended and more formidable. . . . The latest exploita tions of the dominant minorities, if they can still find defenders for their possessions, must submit to the law of progress, which wills the aontinuous increase of the benefits of civiliza tion to all human forces. . . . "Fellow Co-operators, the Lega Nazionale delle Cooperative is dissolved. Long live the Lega Nazionale deUe Cooperative." Almost at the same time as this dis quieting news comes by way of the International Co-operative Alliance and the British Union, other sources of in formation reveal the fact that the same kind of persecution is being carried on by the Fascisti against the Co-operative Credit Unions, a very large number of which are Catholic. The Fascist organi zation threatens to take control of the People's Banks and Rural Credit Unions into Fascist bodies. The High Commis sioner of the Grand Fascist Council has been directed to take such control. And a vigorous note of protest is voiced in the Osservatore Romano, semi-official Catholic daily paper in Eome. C. L. MR. DAVIES SPEAKS ON CO-OPERATION E. EHYS JOHN DAVIES, Under Secretary of State for Home Af fairs in the MacDonald Ministry, now a Labor Member of Parliament, and "a man of long experience in executive po sitions in the British Consumers' Co operative Movement," spoke at a dinner arranged by the Educational Council of The Co-operative League, at the Twenty- fifth Street Consumers' Co-operative Services Eestaurant, on November 18. A good audience of interested co-opera tors was present. Mr. Davies gave a picture of some of the important facts of the British move ment. He showed how the societies control prices, how successfully they compete with profit business and how much they mean to the working people. The audience was surprised that Mr. Davies regarded the "Producers' Co operative Industries" as the most ra tional form of co-operative production, especially in the face of the fact that, as he stated, "it is doubtful if they can compete with the consumers' Co-opera tive Wholesale Society." Milk distribution, Mr. Davies said, could be carried on better by the munic ipalities than by the co-operative socie ties. In fact, in response to several pressing questions, the speaker asserted that the political municipalities were better qualified to carry on such dis tributive business as they attempted than were the co-operatives. "The most honest, most efficient, and the most re liable bodies that I know of are our municipal governing bodies. They are less corruptible and more efficient than the co-operative societies, than the friendly societies, or than the trade unions.'' Mr. Davies frankly gave his hearers to understand that he was for political action in preference to voluntary co operative action, that he was for Social ism rather than for Co-operation. It was obvious that he believed the Co-operative Movement could help the cause of Socialism. Co-operators natur ally asked themselves: How much could British Socialism help the cause of Co operation ? It appears that British Labor Party statesmen regard Co-operation as a help to the promotion of state Socialism; and that when the Labor Party has gotten fully into power, the political govern ment will take away from the co-opera tive societies their functions of distribu tion and turn them over to the political bodies. This of course may be done by placing the Co-operatives under political con trol, or by making all of the Co-opera tive officials political officials, or by the simple expedient of "taking over" as was unsuccessfully attempted by the Eussian Soviet Government. Mr. Davies did not mention any of these matters; they are simply the ideas that naturally eome to the minds of Co-operators present. One thing is obvious: the future holds in its cabinet of uncertainties the con flict between the voluntary principle of Co-operation and the coercive principle •f State Socialism. Most British people are politically minded. They do not recognize a con flict of forces. To them the political government should be the natural agent of the people. They would make Co operation the tail of their political kite. But in every continental European country this conflict is clear and press ing. In every continental country in which Co-operation is making great progress the Co-operative Movement takes a firm and positive stand against political alliances of any kind, against conceding to the political state any of the functions or prerogatives of the co operative societies. Mr. Davies is a Socialist first and a Co-operator second. He is a fluent speaker, a sincere and honest man and an ornament to the British Parliament. J. P. W. SERIES OF ARTICLES ON PRODUCERS AND CONSUMERS IN THE CO-OPERATIVE MOVEMENT Beginning with this number we are starting a new series of special articles on the general topic "Producers and Consumers in the Co-operative Move ment." The series which we ran last year under the title "Why Co-operation is not Enough," interested a large num ber of people and inspired them to send us numerous comments, one of which appears in our correspondence columns this month. Mr. E. C. Lindeman, who contributes the opening article in this new series, is a trained student of social science, a teacher, an editor of the New Republic, author of several books. Among other contributors to the series are Peter Brady, President, Federation (Labor) Bank, New York; Smith W. Brookhart, U. S. Senator from Iowa; L. S. Herron, Editor, Nebraska Union Farmer; Frank E. Lowden, former Governor of Illinois; Oscar McGill, Secretary, Co-operative Lumber Exchange, Seattle; A. J. Muste, Secretary, Brookwood Labor College; Norman Thomas, Director, League for Industrial Democracy. C. L. CORRECTING SOME ERRORS In the December number of CO OPERATION the leading article on the Northern States Co-operative League contained several mistakes due to over sight or lack of complete information. The Board of Directors named was 6 CO-OPERATION CO-OPERATION the board whose term expired early in the year. The present board of the N. S. League is Harold Nordby, Franklin Creamery, president; Paul F. DeMore, Union Consumers' Association, Duluth, vice-president; V. S. Alanne, Franklin Creamery, secretary; E. H. Anderson, Franklin Creamery, treasurer; F. F. Burandt, Franklin Creamery; Mrs. C. E. Nelson, Franklin Women's Guild; H. V. Nurmi, Co-operative Central Ex change, Superior; Eskel Bonn, Co-op erative Central Exchange, Superior; Frank Yetka, Cloquet Co-operative Society, Cloquet. Contrary to our statement, the "Honor Boll" buttons are not for gen eral distribution to the membership of the N. S. League, but are given to in dividuals who have rendered unique service to the League. The special lec turers reported to have been engaged for the Training School did not give the lectures reported in the article, as the regular work crowded the schedule to capacity. The Place of Producers and Consumers in a Co-operative Program FEOM THE VIEWPOINT OF A SOCIAL SCIENTIST By E. C. LINDBMAN "What profound spiritual life can there be when the social order almost forces men to battle with each other for the means of existence?" A. E. both conflict and co-operation are essen tial features. Is it not possible also that many enthusiastic supporters of the consumers' co-operative movement have over-emphasized the consumption phase of the bio-economic process? Has not this placing of presumed opposites created an intellectual problem which stands in the way of progress? Producing and consuming are con tinuous and inter-dependent activities within the bio-economic system. One cannot exist without the other and both vary directly with respect to each other. Discrepancies between the two functions create our economic problems. Every living human being is a consumer. In a rationally-organized society every in dividual would also be a producer of essential services if not of consumable goods. For the great bulk of our popu lation, it is still true moreover that pro ducing and consuming are both com bined in each person. Because a few people have succeeded in manipulating the economic system by means of pro duction and credit control, difficulties arise. In modern industrialized society goods are produced primarily for profit and not to meet needs. It is not sur prising therefore to note that those pro ducers who supply our primary needs, of the simplest fallacies in rea- soning results from placing things in opposition. Thus we argue at great length over heredity versus environ ment, assuming that these two processes are somehow antagonistic; obviously there can be no heredity, i.e., growing, reproducing organisms, without an en vironment. Likewise we speak of individual versus social, conflict versus co-operation, means versus ends, et cetera, indicating that our mental pic tures of these objects or processes present them to us as antithetical, incon sistent opposites. We therefore think that we are discussing important prob lems whereas the difficulties arise out of our naive thought procedures; and of course problems do exist if we think they do. These easy delusions often result from a partial view of a total process. Thus when we speak of either conflict or co operation, we are seeing only one portion of total adjustment. Some idealists tend to develop blind-spots for the conflict phase of adjustment; they dislike struggle and therefore wish to do away with it. But there can be no life without conflict. Living is in fact a continuing adjustment between an organism and its environment in which farmers, are obliged to operate their business with restricted credits and for the most part without profits. They created through intermittent savings the original funds of capital which were promptly utilized by the bankers for promoting quick-profit industries other than agriculture. Farming is still a marginal capitalist enterprise but it travels continuously in the direction of bankruptcy. Our complex industrial organization may collapse but life will still go on if farmers continue to function. If food- production as an economic process de generates, however, no amount of con sumer-co-operation will suffice to prevent a general decline of the standard of liv ing. Many observers, aware of this situation, urge consumers to enter the field of agricultural production. This seems unwise counsel. It means either that people who know nothing about farming will nevertheless be induced to become farmers or that farmers will be exploited by groups of organized con sumers. ' It amounts to throwing the baby out with the bath-water—and the wrong baby at that! The farmer as a bona fide producer is not the consumer's enemy. Moreover, no group of consum ers acting merely as consumers is justi fied in using its savings, its economic power, to dispossess another producing group. Farmers, on the other hand, are likely to prolong the unnecessary conflict be tween producing and consuming func tions by over-emphasizing aspects of capitalistic methods. They are now or ganizing gigantic co-operative associa tions for the purpose of maintaining a higher price level for their products. This they aim to do by eliminating cer tain middlemen and by increasing con sumption through advertising. In so far as they are permitted to secure modified monopolistic control of specific commodi ties, this program may succeed. It is certainly justified as a means of sub tracting the speculative profits of dealers from consumers' prices. Thus far the program has not, however, resulted in lightening the consumer's burden. The price of raw cotton and tobacco, for example, has been partially stabilized, but the consumer has not benefited. Intermediate consumers, those who buy raw products for refinement, are still able to pass the increase on to the ulti mate consumer. In addition, the farm ers' co-operative movement flourishes only where it receives the sanction of powerful governmental or private credit agencies. So long as it remains safe for the bankers, it is encouraged and blessed by the high priests of capitalism. Thus although the farmer as a legitimate pro ducer ought not to be at odds with his customers, the consumers, he virtually assumes this role by playing the capital ist's profit-seeking game. If the present tendency continues, the result will be increased tension between producers and consumers. So long as urban consumers acting on behalf of their consuming function oppose rural producers, or vice versa, the two functions and their rep resentative groups will continue a use less and wasteful warfare. If, as this essay indicates, the conflict between consuming and producing func tions is unnecessary and wasteful, how may the problems involved be ap proached with realistic attitudes ? Ideal ists whose counsel of perfection amounts to pessimism insist that nothing can be done until the entire economic system is altered. They tend to forget that the system is a reflection of our. habits of behavior and that these habits are tena cious. Habit-changing and system- changing must go hand in hand if we are to have orderly progress. Systems and their controlling power-groups may become so case-hardened as to be un amenable to change save by means of revolution, but revolution is justified only when change via the route of science and experiment has failed. Habit- changing as a process subsequent to revolution may turn out to be a costly and painful method. In any case, the true idealist is also an experimentalist. His faith is sustained by the slow gains resulting from the application of scien tific method to human problems. He does not attempt to change parts by changing the whole but rather envisages the changing whole in terms of minute changes in the manageable parts. The above constitutes an argument for the 8 CO-OPERATION CO-OPERATION introduction of rational scientific prin ciples to the problems involved in the relations between consuming and pro ducing functions. In which direction does science point? If producing and consuming are co ordinate processes, two sides of the same shield, two equally essential functions of the on-going life, is it not apparent that creative results may be expected when they integrate? By the same token, is it not rational to suppose that these two functions will negative each other, i.e., produce non-creative results when they are allowed to remain in juxtaposition? How then may the producing and con suming functions be integrated? The scientific answer is: by experiments which look toward integration. If for example consumers behaving as if their consuming function were primary, or ganize consumers' co-operative societies and leave their producing functions un organized, non-co-operative, the two proc esses cannot integrate. If on the other hand they view themselves as total per sonalities in which both consuming and producing are considered to be vital aspects of life, they will also make some effort to bring their producing function within the co-operative program. Again, farmers who organize selling co-opera tives but continue to buy as individuals may never be helpful in changing our present economic system. If, however, they also apply co-operative principles to buying, credits et cetera, they will soon become a powerful stimulus for fundamental change. This process of integration must necessarily begin on modest levels of experiment. It will probably succeed best when applied to commodities of universal need. Milk may be used as an illustration. With respect to this com modity, farmers will naturally view themselves as producers and urban dwellers will assume the role of con sumers. An efficient distributing or ganization is needed for purposes of insuring quality, purity, prompt de livery and other standards. Hitherto this intermediate agency has bought and sold milk at a profit. If milk-producers organized and demanded higher prices they merely shifted the increase to the consumer. When the price reached a certain level, numerous marginal dairy farmers increased their herds and their production until the middleman was able to "beat down" the price to the producer in general. No one gained by this irra tional procedure save the intermediate buyer and distributor. Milk consumers might also attempt to make certain sav ings through collective buying and dis tributing. Their aim, naturally, would be to secure milk at the lowest possible price and they could succeed only by maintaining a continuous battle with the farmers. Obviously what is needed in this case is a strong producers' co operative association, a strong consum ers' co-operative association, and a joint distributing agency composed of the two groups essential to each other. The integrating process would then follow within the area of joint activities. Pro ducers would be compelled to learn something about the incomes of con sumers and likewise consumers would come to learn something of the cost of milk-production. The ultimate and just price of milk would constitute a ratio between income on the one side and cost on the other. Farmers would then come to have a stake in the industrial workers' welfare and the urban consumer of milk would come to view farming as a process integral to his life. If the joint co operative agency were properly organ ized and efficiently managed, it would create capital through savings. This capital could then be utilized for pur poses of producing a commodity needed by both groups. Why for example, should not farmers and industrial labor ers manufacture the shoes which they jointly need? Why should anyone profit by the credits which are periodi cally necessary to both groups? The theory underlying the above proposal includes five premises: (1) the producing function of one group inevitably intersects the consuming func tion of another; creative possibilities lie at this point of intersection; (2) since consuming and producing are equally- essential functions of life, they should be viewed as mutually-dependent vari ables and not as opposites; (3) co-opera tive techniques applied to one aspect of economic activity (consuming, e.g.,) implies that other phases (producing, e.g. ) will also be brought within the area of co-operative experimentation; otherwise we learn co-operative habits on one level only to negative them on another; thus farmers who limit their co-operation to the one process of selling may actually build an organization which inhibits co-operative activities in other spheres; (4) a co-operative program which aims to integrate consuming and producing functions can effect radical changes in the economic system; co operation confined to either one or the other probably does no more than in crease the efficiency of capitalism and the selfishness of co-operators; (5) achievement in the direction of the above proposals does not await general or sweeping changes in the political or economic system; rather it depends upon an accumulation of small experiments. These are obviously simple principles derived from the known facts of human behavior. But their simplicity adds to the weight of the challenge involved. Dogmatists who base their hopes not upon the realistic facts of existence but upon some abstracted and idealized wish will discount these premises. They are interested in conversions not experi ments; they are evangelists not scien tists. This sketchy outline leaves many queries unanswered. A co-operative program based upon the assumption that economic control should ultimately be confined to the consumers who pro duce must take into account such factors as political and legalistic sanctions, the role of the expert, the function of trade unionism, adult education et cetera, et cetera. Its protagonists must also be aware of insidious defenses of capital ism. Profit-sharing, for example, is sure poison to the co-operative move ment; it merely accentuates and dis tributes bad habits. Many of these ques tions and innumerable others implicit in the co-operative ideal will take on new meaning and resolve themselves into positive equations once we begin to see that consuming and producing are not antagonistic functions. QUESTIONS FOR DISCUSSION* 1. Assuming that all living human be ings are consumers, what proportion of the population may be consideeed as legitimate producers? a. In your community? b. In your county? c. In your state? d. In the nation? 2. Why must some producers produce more than they consume? 3. What groups of producers are affected by your consumption? 4. What groups of consumers are affected by your production? 5. Have any experiments in consumer- producer co-operation been con ducted? What are the results? 6. Is an artist a producer? A teacher? An advertising specialist? A house wife? 7. Is the farmer a capitalist or a laborer? 8. Is a farmer-labor political party feasible? Under what conditions? 9. Are farmers' commodity co-opera tive marketing associations organized to function as non-capital societies really co-operative? 10. Is capital necessary for all economic systems? 11. Why should the earnings of capital be limited? 12. What causes over-production? Un- der-consumption ? *As Headings for Discussion Groups, in ad dition to the books included on our lists, Mr. Lindeman suggests: Foundations: A Study in the Ethics and Economics of the Co-operative Movement, W. Clayton and A. Stoddart; A Theory of Social Economy, G. Cassel. Foreign TO SIGNOR MUSSOLINI r\OST feel secure, 0 Duce! in thy high "It is right that Mussolini should place, know what British co-operators think Among thy Black Shirts, strong in law- about him."—THE CO-OPERATIVE NEWS. less power, 10 CO-OPERATION CO-OPERATION 11 Who now the wealth of humble men devour, While theft and murder multiply apace ? Didst think thou long couldst chain a noble race, Or that within thine own appointed hour Thou couldst make all men low before thee cower, All dreams of freedom from their souls efface ? Men in whose veins the blood of Dante runs, _ Whose fathers were by Garibaldi led, Whose own free minds were by Mazzini fed, Will not endure thy lordship many suns: A tyrant is by all true men abhorred,— Who rules by terror has his fit reward. T. W. MEECEE. British Co-operative Union, Novem ber 30, 1925. THE CO-OPERATIVE COAL MINE AT SHILBOTTLE Would the co-operative societies of the country give their support to a con sumer-owned coal mine if we had one? An indication of the correct answer to that puzzling question is perhaps to be found in the experience of the Co-opera tive Wholesale of England. Shilbottle Colliery and the new col liery village is property of the co-opera tives of England, and the coal mine there is co-operatively owned coal. What happens to it? Tom Myers, an ex-Member of Parlia ment, makes several charges, the most serious of which is as follows: "The men who produce the coal say that it is very doubtful if more than 10 per cent of the coal produced finds its way into co-operative channels. The coal goes to the Shetland Islands, to Banff in the North of Scotland, into boats from the little coal ports close at hand, to make up the shortage in the supplies from private collieries. The co-operative supply used as an accom modation for the collieries of a big combine. Hundreds of thousands of co- operators buying coal, and the co-opera tive pit standing nine days in a period of three weeks recently for lack of trade, and co-operative employees on the dole, while the manager was scouring Scotland seeking orders from private enterprise for co-operative coal." These are serious charges. The reply of the Co-operative Wholesale is to the following effect: That considerably more than 10 per cent of the coal mined goes into co operative channels, but that many of the societies which are closer to private ly-owned collieries continue to use non- co-operative coal, as freight rates are lower. That sales to private firms are at a price above that paid by the co operatives. That the management of the Shilbottle Colliery is most anxious to sell only to co-operatives, but that if they will not buy, certainly the surplus coal cannot be dumped into the sea; better sell it to private firms than shut the mines down entirely. That there is no use establishing new selling agencies for coal among the co-operatives, for there already are coal departments at four points which handle Shilbottle coal. THE LABOR PARTY ON CO-OPERATION Mr. Lang, newly elected Premier of New South Wales on the Labor Party ticket, has had his advisors draw up a resolution setting .forth the attitude of the Labor Party toward the Co-opera tive Movement. Here is the resolution: "As the main objective of the Labor Party in New South Wales is the social ization of the means of production, dis tribution and exchange, it therefore stands squarely behind the Consumers' Co-operative Movement, which is al ready securing ownership of industry for the people, control by the people and is equitably distributing its trading surpluses to the people, and not to the owners of capital. The Labor Party recognizes that the Co-operative Move ment is democratic in every respect. "As the Labor Party has been re turned to power by a majority of elec tors for the purpose of putting its platform into effect, it must therefore extend to the Co-operative Movement every assistance necessary to provide for its unhampered development. That all facilities for Co-operative education be granted and vested interests be re strained where it can be shown they are discriminating against Co-operative organizations.'' CO-OPERATIVES FIGHT PRIVATE FIRMS WITH BOOKS. Germany has some remarkable "book societies," which are co-operative in character. Eeaders pay an annual mem bership fee in these societies and receive four or even six books well printed and bound from their own co-operative publishers every year. The oldest of these, according to a writer in the New York Times, is the Peo ple's Club of Book Lovers, with nearly one hundred thousand members; it is also the largest. The German Book Associa tion is almost as large; and there are many that are smaller. And the private publishers are becoming seriously con cerned, for their sales are falling off. In fact, they made a public announce ment not long ago that any writer who had these co-operatives publish his works would not be sold in the private book stores of Germany. Immediately both the co-operatives and the various Writers Associations rallied to the defense of the novelists, essayists and poets, and in a few months the boycott was lifted and the private publishers and booksellers acknowledged defeat. Again the co operative principle stands vindicated as being more sound economically, much wiser as a social program, and on a higher ethical plane. CO-OPERATIVE NAMES FOR STREETS In England co-operators may see on the corners of their avenues and streets names to memorialize the great work done by the Rochdale Pioneers. In Kettering there is Kingsley Ave nue, Neal Avenue, Blandford Avenue, Holyoake Street, Mitchell Street, Hughes Street. In Enderby there are Federation Street, Co-operation Street, Holyoake Street, Equity Road, Mitchell Road, Maxwell Road, Shillito Road. In New Normanton may be found Derby Street, Industrial Street, Provi dent Street, Co-operative Street, Society Street—the five words that go to identify the society that has established a branch in this town. There is also a Holyoake Terrace and a Merchant Avenue named by the co-operators. MORE COMPULSORY CO-OPERATION In CO-OPEEATION for October, 1925, appeared an editorial on the new law enacted in Queensland, Australia, which provided that when 75 per cent of the growers of any one commodity agreed to market through a co-operative associ ation, the other growers should be com pelled by law to market through this organization also. The editorial pointed out that this is the first attempt at compulsory co-operative marketing. The International Labor Office now tells of a similar law in South Africa, with a similar provision that 75 per cent membership may compel the other 25 per cent of the growers to join the original 75 per cent. There was vigor ous opposition to the bill, but it finally prevailed. The opposition was of two kinds. Some opposed the very principle of compulsory co-operation itself; others thought that 75 per cent was too low a figure. On the other hand, there were many who approved entirely of the measure and wanted even a lower figure than 75 per cent. SHORTENING THE WORKING HOURS Of course, after all is said about the glory of work, everybody wants to be free to do as little as he can. The Co operative Movement is helping toward this end. As an employer of labor co operative societies have taken the lead in shortening hours of work and raising wages. In Europe every co-operative society has abolished the ten-hour day among clerks, although it is still com mon among private employers. In Great Britain the eight-hour day is practically universal among co-opera tives. Now about half of the societies have established the 40-hour week among clerks, which means that they work five days a week. In England in 1913 there were 23 societies working 48 hours or less; in 1914, there were 96; in 1917, there were 134; and in 1924, the number was 779. 12 CO-OPERATION CO-OPERATION 13 News and Comment CO-OPERATIVE CAFE IN CHICAGO HpWELVE years ago a group of •*• Swedish people organized the Co operative Temperance Cafe Idrott. Emphasis was placed upon good food, low prices, good working conditions to the employees. The only restrictions upon membership at the beginning were those forbidding membership to users of intoxicating liquors. The association was organized without capital stock. From the beginning the organization was so successful that new members be gan to swarm in. Believing that too rapid a growth was dangerous, an amendment was drawn to the by-laws which limited the number of new mem bers to ten each year. The society now has 200 members. Surplus has been regularly turned back into the business, so that they now oc- eupy an entire building on Wilton Avenue and operate a branch cafe in another location. In the main building they not only run a large cafe with dining rooms and club rooms for mem bers, but also a bakery and a meat de partment. There is also a good library, game room, room-renting service, and mail distribution service. The new building was erected two years ago. The society is not incorporated; each member has only one share; directors and manager are elected annually. CREDIT UNIONS IN NEW YORK At the beginning of 1925 there were 115 credit unions in New York State, a gain of eight during the previous year There are thirteen new unions; five have dissolved. Total resources increased by $2,000,000 in the year to $10,550,- 000. About a score of these institutions realize their identity with the Co-opera tive Movement and have an interest in it; the rest are maintained by com mercial interests as easier means of securing credits. UNION WORKERS CREDIT UNION, BOSTON This little Credit Union, organized among some of the leading trade union ists of Boston, only a few years ago, now has 157 members, 58 of whom are borrowers, and only 17 of whom are depositors. The share capital has in creased from $2,500 to $3,330 during twelve months, and the loans from $2,327 to $3,579. Total assets are $4,396. Harry Haskell, clerk and treasurer, reports an excellent condition, attested to by the fact that the Bank Examiner O.K.'d every page of the books and all notes and securities. Not a single cent has been lost from the beginning of business. There are 21 officers, all of them serving without pay. Prom the very start 5 per cent has been paid on deposits and 6 per cent on shares. THE COST OF HANDLING The spread of costs between the pro ducer and the consumer should be kept before the people until they decide to do something about it. A crate of celery has been followed from Norfolk, Vir ginia, to the consumers' home in New York City, and this is what happened: The producer sold the crate for 40 cents. Commission man No. 1 sold it for 60 cents; No. 2 sold it for 75 cents; No. 3 sold it for 90 cents; No. 4 sold it for $1.05; No. 5 sold it for $1.15; No. 6 sold it for $1.25 to a buyer for grocery stores; the buyer sold it to a retail grocery store for $1.35; the grocer sold it to his cus tomers for $2.60. This study was made by Franklin D. Eoosevelt, former Secretary of the Navy. B. F. Yoakum in a recent investiga tion found that the farmer received an average of $16.40 a ton for cabbage for which the consumer paid from $60 to $75 a ton; the farmer received an aver age of $31.79 per ton for tomatoes for which the consumer paid $100 per ton; that the farmer received &/% cents for a watermelon for which the consumer paid 50 cents to $1.50. CAN CO-OPERATORS COMPETE WITH THE BREAD TRUST? It is an old story that over in Eng land, the co-operators are undercutting the private bakers much of the time, and still making a surplus. But how about America? We have been deluged recently with stories of the great bread mergers, with a new national bakery corporation having a capital of $400,000,000, etc., etc. One of these huge concerns is the Ward Baking Company. In New York they are selling a twelve ounce loaf of white bread, made by non-union bakers at 8 cents a loaf. The large Finnish Co-operative Trad ing Association of Brooklyn sells a 16- ounce loaf of white bread for the same price—8 cents. Three pounds of bread from the Co-operative costs 24 cents, but if you buy the same amount of bread from Ward, you pay 32 cents. And at the co-operative a higher quality flour and other materials are being used, and full union conditions prevail. This scare that the American workers are giving themselves about bread mo nopoly is only about one-third justified. The other two-thirds is pretty largely the traditional lack of enterprise and initiative of American workers. Ninety- nine per cent of our industrial workers and farmers wail to High Heaven that the Bread Trust is robbing them. But the other 1 per cent quietly go about the job of baking better and cheaper bread for themselves in their own co-operative plants. This Co-operative Bakery did a busi ness of nearly $215,000 in 1925, and there is now such a demand for its products, that it has outgrown its large Brooklyn plant and is planning a new and much larger building in the Bronx. The hand some building in Brooklyn, erected by the co-operators only five years ago, will become a branch to feed the Brooklyn and Long Island, trade, while the new plant will handle the much larger busi ness in Manhattan, Harlem, the Bronx and Northern New Jersey. THE FARMERS' CO-OPERATIVE ELEC TRIC TRANSMISSION LINE. Can the farmer's wife substitute elec tric lights for the kerosene lamp, and at the same time enjoy the use of a washing machine, electric coffee perco lator, toaster, vacuum cleaner, curling iron, even the electric stove and sewing machine and refrigeration? And can her man use "white coal" for pumping his water to the barn and fields, for cutting his wood and ensilage, for run ning the milking machine, cream sepa rator, shop motor, hay baler, clipper, grain cleaner, churn and elevator! More important yet, can the farmers organize to get their electric current co-operatively ? In many parts of the Central and Far West the farmers have organized their own co-operatives for getting electric current without paying the huge profit toll exacted by the private companies. One example of such a Co-operative is the Berwick Transmission Line Company of Nemaha County, Kansas, organized in 1919 with $25,000 capital and seventy- eight customers scattered along its thirty miles of line. The co-operators each took one share of stock at $250, elected a Board of Directors, and decided to purchase their current at wholesale rates from the City of Sabetha. The company supplies the poles, wire, insulators and hardware to convey the current along the public high way and the user supplies all equipment between the highway and his house. Current is metered out at a rate of nine cents per kilowatt hour for lighting and seven cents for power, with extra charges for incidentals. Among the users of this co-operative brand of electricity are 69 farmers, five schools, one church, one township hall, one store and one commercial garage. The output of current is increasing each year. How long will it be before the Co-operative is large enough to produce its own current, as so many of the Co operative electric societies of Europe are doing? 14 CO-OPERATION CO-OPERATION 15 Directors' Page TO ALL GROCERY STORE MANAGERS job has its duties and re- sponsibilities. These are the most essential requirements of our store managers. You are responsible to the Co-operative Society for the success of the store assigned to you. The Executive Staff of The League stands ready to help you, but the responsibilities which you assume, you must either carry out or let the other fellow do it. In your relations with your store clerks at all times conduct yourself so that you have their respect. Be cheer ful but avoid familiarity. Be firm, but remember kindly advice goes lots fur ther than harsh words with most per sons. The big job is to study your men and know how you can bring out the best that is in them for the mutual bene fit of the Co-operative Movement and themselves. Increased Volume of Business Many points come into play to ac complish a steady, permanent, increased volume of business. Clerks must be taught to put as much effort in selling their own personality to their trade as they do their merchandise. Everyone likes to make friends, and it is the surest way for a manager and a clerk to build up sales. With some men, this comes naturally, with others it requires con siderable effort, but the habit can be acquired. Continue to build the con fidence with customers by never ex aggerating the goods you are selling. Give the customers the actual facts and don't be afraid to tell the price. En courage the clerks to acquaint themselves as much as possible with the origin of the merchandise they sell, by reading trade papers, the monthly magazine CO-OPERATION, etc. It is always easier for a man to sell an article that he is thoroughly familiar with. Proper dis play of mei'chandise in windows and inside of the store is also helpful. Increased volume however, can only be accomplished by clerks getting and holding new customers. Selling Profitable Merchandise See that clerks are pushing profitable merchandise, and not spending all their effort on Specials. Specials, on the whole, attract only the transient trade, which however should be used to advan tage in an endeavor to develop new customers. Merchandise on Hand Stores must not have too much stock but they must have sufficient to satis factorily take care of their business. Store managers should look over whole sale orders and advise their clerks how to order, and avoid over-ordering. Especially in the case of perishable mer chandise, see that clerks do not over- order and that all perishables are sold out quickly to prevent spoilage. Stock Turnover The matter of stock turnover, or carrying too large an inventory for the amount of sales is also a big factor in chain store business. The clerk should be told that eveiy dollar's worth of mer chandise carried on stock costs the Co operative Society ...... per cent per annum which must be charged against the profits and is detrimental to the store showing. Quick turnover increases profits. Stock Shortage Another problem which the store manager must guard against is stock shortages. Impress upon the clerk's mind the importance of a good stock showing at the end of the month. A store may have a poor showing for a month, due to stock shortage but if the manager does not show improvement, he will be replaced. He may really be innocent as far as his honesty is con cerned—merely careless, but the record may keep him from getting another good job. Clerks must check all merchandise carefully and not sign for anything which they have not received, and watch out for spoilage of perishables. Have scales tested frequently as they soon become out of balance, and very often against the Company. Show the clerks the large amount of revenue that can be made at their stores by using extreme care in opening their containers. Espe cially so with sugar bags as sugar bags with linings in perfect condition wil^ bring a salvage of approximately eight cents while the same bags if linings are torn would have to be sold for probably three and a half cents. Good Clerks In order to accomplish the foregoing it is necessary for store managers to have good clerks in charge of the store; a good clerk is reliable, efficient and loyal to the Co-operative Society. Store managers must at all times have an effi cient man or men available to take the place of a chief-clerk in an emergency, or if a clerk should resign, or be dis charged and see that all clerks are able to intelligently wait on customers. Cleanliness Stores must be kept immaculately clean; store managers must see that proper care is taken of fixtures and machinery, that cellars are kept clean and orderly and above all see that clerks are clean and tidy personally. Rules See that clerks are thoroughly familiar with the rules. See that health and labor laws are thoroughly understood and obeyed by all clerks. Deposits and Care of Money Last, but by no means least, see that a deposit is made from the store once every 48 hours. Instruct your chief clerk that if, for any reason, you are not able to call at the store, he must see that the money gets to the bank. Also im press upon the clerks the importance of handling all their own cash in justice to themselves and the clerks working with them. This should be done wherever possible. Let us all be instilled with courage to bring about a bigger and better co operative organization year after year. CAEL STOIKE, Formerly with Co-operative Union of Germany. Book Review "AS OTHERS SEE US" Co-OPEKATION IN THE UNITED STATES. Published by Grain Dealers' Na tional Association. 126 pages. THE first impulse of a real co-operator, on picking up this little book, is toward ridicule. Who expects a fair treatment of the subject from those who have most to lose from the Co-operative Move ment? But let us hold our merriment in check. One of the common faults of co-operative leaders has been too much complacency. We are content to seek advice and criticism too exclusively from men within our own movement. There may be some very healthful in formation in the criticism of leaders of private business, provided it is carefully thought out. And in this book, the com ments are the result of careful study and mature deliberation. _The book opens with a survey of the history and development of Co-opera tion in America: co-operative insurance, credit, telephones, stores, packing houses, canneries, marketing. We are told that the store movement is a 99 per cent failure, that insurance is the best field for co-operation, with credit second in favor; that packing houses and canneries are universally a bad bet; and that marketing is still in the ex perimental stages with no assurance of permanency. An excellent analysis is made of the co-operative laws in the various states and at Washington. It is easy to pick many flaws in this treatise. For instance, in writing about the store movement, the author uses ex amples only of the groups of stores that have failed: the Granger stores, the Sovereigns of Industry, the Eight Re lationship League. He does not men tion the Finnish stores, the farmers' stores united with the Farmers' Union, the Grange stores in Washington. And he insists that farmers generally had 16 CO-OPERATION CO-OPERATION 17 better get into other lines of co-operative business than groceries and household supplies. There are many other glaring defects of this kind in the book. But there is also much to learn from these studies. A great deal of attention is given to the subject of failures among marketing associations and the reasons therefor. After analyzing the large centralized associations and their trou bles, the writer states his opinion that "the fundamentals (of co-operative marketing) are voluntary co-operation and a broad co-operative spirit which looks beyond immediate personal ad vantages to long-time results." He con demns in unmeasured terms the co operative organized without provision for building up a surplus; the high pres sure promotion campaigns of the Amer ican Farm Bureau and other central organizations and enterprising individu als and state bureaux; the effort of many marketing groups to defeat the law of increased production following higher prices; high prices and fees to execu tives and attorneys ($52,794 for Mr. Sapiro from the Prune Growers in 1921 alone); over-legislation and dependence upon legalistic rather than economic aids to co-operative development; tend ency to "drift away from the local co operative to the large-scale showy kind." Of course these people are strong for the principle of "individualism." They make much of their pet hobby that "if a man can run business efficiently, he will be in business for himself; if he can't, he will manage a co-operative." Their final conclusion at the' end of the book is that though co-operation can effect some petty economies for the farmers, their real salvation is in better methods of production. "And now abideth these three problems in Co operative Marketing: Price, Distribu tion, Quality; and the greatest of these is Quality." C. L. The Correspondence File "WHY CO-OPERATION IS NOT ENOUGH " Editor of Co-operation: Under this title I have read several articles published in your magazine, CO-OPEKATION. I personally realize that co-operation is not the only remedy for the present economic order which permits oppression 'by those in possession of economic means. I write this only to disclose some misunderstandings about co operation and its aims on the part of the contributors to this subject. The Anarchist says, "Idealism must domi nate economic interest." It is true. But is co-operation against idealism? Co-operation has as its aim the production and distribution of goods not for the interest of some indi viduals or social groups, but for the interest of all people. It is based upon a real demo cratic principle—all members are equal; for everybody there is a place in any co-operative organization. He further states: "My own social theory is that known as Anarchist Com munism: Free Communism as opposed to State Communism. It is a society based upon indi vidual freedom with communistic methods of production and distribution. This movement, like all social movements has an economic foundation; but the vitalizing force lies in the ideal of a society of free individuals, each living his life to its highest possibility and recognizing an equal right for others." The writer cannot fail to recognize that co-opera tion is the form of organization entirely sup porting his point of view and why he fails to endorse the co-operative movement is diffi cult to understand. But let us turn to the Socialist mayor who recognizes that '' True co-operation is based on ideals of 'justice, brotherhood and service.' If a civilization can be built on such ideals it will not only survive but be imperishable." Such an interpretation of aims and basis of co-operation gives to the author a right to endorse the co-operative movement as a move ment supporting the principles of the Socialist party to which he conforms and which sup ports "The collective ownership and demo cratic management of all monopolistically owned and controlled means of productive dis tribution." Answering the question "Why Co-operation is not Enough?" the Socialist mayor rightly concludes that only the joint common action of the three movements—so cialism, trade unionism and co-operation—could help in building up a new society based upon mutual help and not upon competition. As a Marxian Socialist he forgot that besides the working class there are many social groups which should also work to overcome individual selfishness. Co-operation, not being a class organization, gives an opportunity, not only to the working classes but to all other groups to achieve this end. The next article criticizes co-operation from the Communist point of view. It seems to me that this writer calls himself a Communist through a misunderstanding. Upon reading his article I find that he is a Bolshevik and not a Communist. The difference between Com munists and Bolsheviks, who claim to be Com munists, is that Communism is a theory of the reconstruction of society upon new bases while Bolshevism is exclusively a theory of struggle and destruction. He says, "The co-operative movement can be used to the advantage of the workers in their struggle provided it is organized and led on the basis of the fundamental class struggle. Co-operation between the workers— struggle between the workers and the bour geoisie; this is the formula for a successful co-operative movement." This is a denial of the very principles of co-operation. Co-opera tion does not care about this or that class. It is concerned in the improvement of condi tions for all classes and all groups of people and in the building up of a society by peaceful means upon new bases such as are so well out lined by the Milwaukee mayor. A man having recourse to struggle and destruction has no right to appeal to co-operators because the very aim of co-operation is reconstruction. The next article examines the co-operative movement from the point of view of the Social Evolutionist. He says, "The economic de mocracy which now impends, as the next great step forward in social evolution is plainly going to be something akin to socialism, it is truey- something akin to communism, something akin to co-operation. But it will be none of these. It will be something foreseen by no prophet now before the people." And further he takes the position of one who believes that there are "inexorable forces, which, under whatever name, history reveals as propelling and guiding the course of events along an orbit which man never controls, never approves, and never even foresees." On the strength of this he con- dudes, "CONSTRUCTIVE social evolution, on the one hand, lies wholly outside the domain of human mentality. The mind of man pos sesses no power over it. Its progress depends not at all upon man's mentality." If this were so, co-operation certainly could do no constructive work. But is it so? And then we come to the subject treated from the standpoint of the Single Taxer. The author speculates with the contradiction of con sumers' and producers' co-operation in which the consumer's object is to purchase goods at the cheapest price possible while the producer aims to sell them at the highest price possible. As this is not the only aim of co-operation and as joint price-fixing easily takes care of this problem, this can be no objection to co-opera tion. He is right in his conclusion that low taxes, and no taxes on livestock, buildings, improvements, implements and personal effects, will be of great benefit to consumers' co-opera tion as it is now benefiting the farmers of Canada. The evolutionist is followed by a professor of economics who discusses the ques tion from the capitalist point of view. It is interesting to note the opening lines of his article: "For certain classes of enterprises the co-operative form of organization is best." A little further he goes on to say, "In a situa tion where the main difficulty is not to get enough capital but to hold the loyalty of patrons, the co-operative form is better" (than the capitalist). Such remarks made by a professor of eco nomics in discussing the question of co-opera tion from the capitalistic point of view is very significant. It is a recognition of the form itself, and that means a great deal. He talks of the Oneida community which for thirty years existed as a communistic group but which finally changed into a New York State joint stock corporation with a capital of $600,000— thus justifying his arguments. As a defender of the capitalist system he praises the selling of shares to workers who thus become members of a corporation. Attacking Co-operation and praising ownership of shares by workers, he comes to this conclusion: "This diffusion of ownership is giving the working men, to a large extent, the ownership of the tools with which they work. There is no reason why it should not be carried further. The joint stock form of organization fits in perfectly with that idea, and it is being acted upon by millions of workers. It comes more nearly being genuinely co-operative than any plan now in operation." And finally the last issue, at the time of writing this, treats Co-operation from the point of view of the Syndicalist. Here the writer restrains himself by saying that "The Consumers' co-operative movement is not enough to insure the transition to a society controlled by the workers because it has in it no dynamic force." Such a restriction gives Mr. Baldwin the right to exclaim in conclusion, "No, consumers' co-operation is not enough for revolutionists!" But here we see again, as in the article of the Communist, that the chief purpose o_f humanity, and of workers in particular, is "to fight." If this is true, then Mr. Baldwin is right, especially if he thinks that "the co-operatives play a purely passive role." But is it true that an organization which is trying to reconstruct the methods of production and distribution for the benefit of all people is playing a purely passive r61e? Giving some credit to consumers' co-opera tion which "is all to the good on the way to a workers' society," Mr. Baldwin concludes: "But it is not the main line toward revolu tionary change, nor is it the essential factor in the actual reorganization of society by the workers." Certainly not! Co-operation means constructive work for the whole population and not for any favored group, whether they be workers or others. The commonwealth must be rebuilt for the people, by the people them selves and not by any special group. I think that it was not necessary to discuss the question: "Why Co-operation is not Enough," for I do not know any Co-operator who thinks that only through Co-operation can the world be saved from all the injustices of capitalist selfishness. But all the contributors to the subject failed to realize that Co-opera tion is not only interested in the reduction of prices but that it has as its aim the recon struction of society upon a new basis—on the basis of mutual help for all and not for the interest of some special group, whatever name this group may have. And working in this direction, Co-operation is doing a very im portant piece of work. Co-operation has its ideal but this ideal was forgotten by nearly all the contributors. New York City. C. 18 CO-OPERATION CO-OPERATION 19 A VETERAN OF WARS, ECONOMIC, POLITICAL AND INTERNATIONAL Sditor of Co-operation: During the last election in this State, I was the Farmer-Labor candidate for Lieutenant Governor. While I received for that office 345,000 votes, was several thousand short of victory. Had I won, most of my program would have remained on the shelf as I would not have had a Senate favorable to me. Pre vious to this I organized the World War Veterans and worked with the Non-Partisan League, both organizations now being nearly a thing of the past. Eeaction struck and it crumbled everything before it. If we had put our money and energy into the Co-operative movement we would have had an economic background and would now be doing real things in the reconstruction of the economic system. By this experience I however intend to profit; it is better late than never, and the Co-operative movement is our only hope of survival in this economic situation in which we now find ourselves. I speak from a Worker's and Farmer's standpoint. EMIL HOLMES, President World War Veterans. Hopkius, Minn. From The League Office PRIZE CONTEST FOR CARTOONISTS. A PEIZE of $50 is offered by The Co operative League to the cartoonist, ama teur or otherwise, who presents the most acceptable sketch of the co-operative and the non-co-operative character in car toon. These two characters, engaged in dialogue, will be used regularly in publi cations of The League and in other publications of the labor, farmer, and co-operative press. We suggest two characters: one to represent the intelligent and active mem ber of the co-operative society; the other to represent the ignoramus, "bonehead," "boob," "poor fish." With each ap pearance of these characters in public will appear a new dialogue skit, in which the second character shows by his ques tion or comment his utter inability to grasp the most elementary co-operative idea; he gets cheated; while the first character shows his understanding of Co-operation, its significance and ulti mate purpose; he always wins out. Appropriate names for the two charac ters should be submitted also. Beyond these requirements, there are no limitations placed upon the imagina tion of the contesting cartoonist. The characters may both be men, both women, or they may be a man and a woman. A few names for these characters have already been suggested—"Wiz and Biz," "Coop and Snoop," "Imp and Simp," "Eazz and Jazz," "Eazz and Berry." The person submitting the most suit able pair of characters in sketch will then be requested to supply five sketches of these characters in various poses or posi tions, and upon receipt of these five sketches, the Executive Office of The Co-operative League will send a check for $50 to this winner of the contest. The idea will be copyrighted by The Co-operative League and the initials or name of the successful artist will be carried in every picture. Sketches for the contest should be sent to The Co operative League, 167 West 12th Street, New York City. They must be submitted before March 1, 1926. Winner of the contest will be announced in the April number of Co-operation. Contestants may not expect sketches submitted to The League to be returned, unless self-addressed stamped envelope is enclosed. YEAR BOOK OF NORTHERN STATES CO-OPERATIVE LEAGUE THE Year Book of the Northern States League is the first attempt to embody co-operative statistics in a Year Book in the United States. The book is paper- covered, has 128 pages, and many in teresting articles in addition to photo graphs, tables of statistics and other valuable information. Price is 20 cents. BOUND VOLUME AND INDEX OF CO-OPERATION INDEX of Volume XI of CO-OPERATION may be procured free from the office of The Co-operative League by anyone who wants a copy. Bound volume of the magazine for 1925 will also be ready in a couple of weeks. PUBLICATIONS — OF — THE CO-OPERATIVE LEAGUE .50 .10 .02 .10 4.00 4.00 2.50 1.00 HISTORICAL Per Copy Per 100 •j Story of Co-operation .............$ .10 $6.00 7' British Co-operative Movement..... .10 6.00 V) Consumers' Co-operative Societies in N. Y. State (Published by Con sumers' League ................ .10 59 Co-operative Movement in liurope.. .05 64 Progress of Co-operation in United States . .....".....".".'......... -05 TECHNICAL 4 How to Start and Run a Rochdale Co-operative Society ............ .10 5. System of Store Records and Accounts . . . . . . ............. 6 A Model Constitution and By-Laws for a Co-operative Society....... .05 8. Co-operative Education. Duties of Educational Committee Defined... .10 9. How to Start a Co-operative Whole sale . . . . . . • ................. 27 Why Co-operative Stores Fail...... 2 Co-operative Store Management..... 14 How to Start and Run a Women's ' Guild. ....................... .05 15. How to Organize a District Co-opera tive League ................... -10 29. Credit Union Primer (By Ham and Robinson). . . . . . . ............ .50 32. Application Blanks for Membership in a Co-op Society. ............. 43. Co-operative Housing ............. .10 50. A B C of Co-operative Housing.... .10 51. Model Lease for Co-operative Apart ment House ................... .10 MISCELLANEOUS 16. Model Co-op State Law. ........... .10 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 33. Credit Union and Co-operative Bank .05 13. The Place of Co-operation Among Other Movements .............. .25 34. Co-operative Movement (Yiddish).. .02 30. " When the Whistle Blew " (Story, by Bruce Calvert) .............. .06 41. Social Aspects of Farmers' Co-opera tive Marketing (By Benson Y. Landis). .................... .25 42. Co-op Homes for Europe's Homeless .10 53. Real First Aid for the Farmers.... .05 54. Credit at Cost for the People. ...... .05 55. A Better World to Live In. ....... .05 56. Government That Begins at Home. . .05 57. How a Consumers' Co-operative Dif fers from Ordinary Business. . . . .02 60. The " Moral Equivalent " of Jazz. . . .02 62. Buttons (League Emblem in 3 colors) 34 inch diameter. ....... 63. Sign or Transparency of League Em ble .65 1.75 1.25 3.00 lem. Green and gold, 8 in. diam. . .25 15.00 ONE-PAGE LEAFLETS (One Cent each; 50 Cents per 100; $2.50 per 500; $4.00 per 1,000.) (1) Principles and Aims of The Co-operative League; (18) 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; (36) 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 Move ment?; (45) Schools and Stores; (47) A Man's Right to a Job; (48) Tips to Co-operators; (49) The Way Out; (58) Making Co-operation Succeed in America; (61) Co-operation Brings Disarmament. MONTHLY PUBLICATIONS CO-OPERATION—(In bundle lots, $7.50 per hun dred). Subscription, per year..............$1'.00 HOME CO-OPERATOR, 4 pages...... .$1.00 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 Move ment. They may be ordered through The League: Bergengren, Roy F.: Co-operative Banking, A Credit Union Book ..................... $3.00 Blanc, Elsie T.: Co-operative Movement in Russia . . . . . . . ....................... 2.50 Brightwill, L. R.: Animal " Co-op " Book—For Children............................ .15 Faber, Harald: Co-operation in Danish Agricul ture, 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. Cloth, $3.00; paper bound...................... .90 Hall, Prof. Fred: Handbook for Members of Co operative Committees ................... 2.00 Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, $2.00; paper bound . . . . . . . ....................... .60 Holyoake: Rochdale Pioneers ................ 1.00 Howe, Fred C.: Denmark, a Co-operative Com monwealth, 1921 ....................... 2.00 Jessness, O. B.: Co-operative Marketing of Farm Products ......................... 2.50 Madams, J. P.: The Story Retold............ .50 Nicholson, Isa: Our Story................... .25 Potter, B.: Co-operative Movement in Great Britain . . . . . . . ....................... 1.00 Redfern, Percy: The Story of the C. W. S..... 2.00 Redfern, Percy: The Consumers' Place in So ciety, 1920 ............................. 1.00 Smith-Gordon & Staples: Rural Reconstruction in Ireland, 19.18 ........................ 1.00 Smith-Gordon and O'Brien: Co-operation in Denmark........................... 1.00 Smith-Gordon and O'Brien: Co-operation in Many Lands, 1920 ..................... 1.50 Sonnichsen, Albert: Consumers' Co-operation, 1919. Paper bound .................... .75 Steen, H.: Co-operative Marketing............ 1.00 Stolinsky, A.: The Co-operative Movement. (In Yiddish). . . . . . . ...................... 1.00 Warbasse, James P.: Co-operative Democracy.. 2.50 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 . . . . . . . ..................... 1.00 Woolf, L.: Socialism and Co-operation........ 1.50 Co-operation in Great Britain and Ireland, paper .25 CO-OFERATION, Bound Volumes, 1915 to 1925 inclusive, each ......................... 1.25 Transactions of Second American Co-operative Congress, 1920 ......................... 1.00 Transactions of Third American Co-operative Congress, 1922 ......................... 1.00 Transactions of Fourth American Co-operative Congress, 1924 ......................... 1.00 Northern States Year Book, 1925. Paper..... .20 The People's Year Book, 1925. Cloth, $1.00; paper bound ........................... .60 (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 alms 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. Subscribe fo» the Monthly Magazine and keep in touch with the Movement. D Subscription for CO-OPERATION, $1.00. Q Membership in The LEAGUE, $1.00. find * nna $. for lor Name... Address. Co-operative Central Exchange Wholesale Grocers and Jobbers, Bakers We supply goods to Co-operative Societies ONLY. We arc owned and controlled by Co operative Societies. We are organized to enable Co-operative Societies to do collectively what they cannot do individually. Co-operative Central Exchange Offices, Warehouses and Plant: Winter Street and Ogden Ave., SUPERIOR, WIS. Co-operators* Ltd. Mutual Fire Insurance Co. is noiv writing insurance in State of Wisconsin THE PRODUCER Issued Monthly Price 3d. If you want to keep in touch with business, organization, administrative affairs, and problems of the British Co-operative Movement, read THE PRODUCER. Published hy Co-operative Wholesale Society, Inc., I Balloon Street, Manchester Post free 4 sh. Cd. a year. The Trade and Technical Organ of British Co-operation. TEE NEW SECRETARY'S LEDGER Published by the Educational Department Central States Co-operative Wholesale So'ciety (208 Converse Ave., E. St. Louis, 111.) is the form for keeping the Membership Ledger of a Co-operative Society which provides ample and proper space for all transactions with a maximum of effi ciency and a minimum of time, worry and errors. Send for Samples and Prices Co-operafion in Scotland In no part of the world is Co-operation fur ther developed, or more successfully practiced than in Scotland. If you wish to keep in formed, read "The Scottish Co-operator" (Published Weekly) Subscription: Year 12 sh.; half-year, 6 sh. Address, 119 Paisley Road, Glasgow, _ Scotland The Madras Monthly Bulletin of Co-operation ROYAPETTAH, MADRAS, INDIA The premier monthly ou Co-operation in India. Special articles on Rural, Con sumers', Agricultural, Credit and Indus trial Co-operation; and Co-operation Abroad. Subscription Rs. 4/12 per annum. The Canadian Co-operator Brantford, Ontario, Canada The organ of the Canadian Co-or*cra- tive Movement, owned by and con ducted under tlie auspices of The Co-operative Union of Canada. Published monthly 75c per annum 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 OKJPER™ A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in voluntary association, produce and distribute for their own use the things they need. Published Monthly by THE CO-OPERATIVE LEAGUE 167 West 12th Street, New York City J. P. WARBASSE, Editor Entered as Second Class matter, December 19, 1917, at tlie Post Office at New York, N. Y., under the Act of March 3, 1879. Price $1.00 a year. VOL. XII, No. 2 FEBRUARY, 1926 10 CENTS ONE OF NEW YORK'S CO-OPERATIVE HOUSES. Co-operative Bouses are loth large and small; ornate and plain; "high-priced and low-priced; for organized workers, professional and business people. This house, on Belmont Ave., Bronx, is one of the smaller. Built to house eight families, it was purchased two years ago l>y a Co-operative Association for $41000. Monthly charges ("Bents") range from $60 to $65 for six rooms and l>ath 22 CO-OPE RAT ION Co-operative Home Builders in New York '"PHE workers and professional people of Greater New York have begun to _-M;ake hold of co-operative housing in real earnest during the past few years. Jewish groups in the Bronx, Finnish groups in Brooklyn, miscellaneous groups in Manhattan and Queens—each borough of the great city has co-operative homeseekers driving by different roads toward the same goal: low-priced housing without profit, security of tenure, democratic control by the tenant members themselves. Here you see sixty single people in co-operative control of a lodging house which also provides two meals a day for its members. . There you find a colony of many co-operative apartment houses with two co-operative restaurants situated in the same neighborhood for the convenience of their occupants. A third group experiments with co-operative buying of a few lines of groceries. A fourth specializes in a large playground with tennis courts for the adults and sand boxes, wading pool, etc., for the children. Properties vary in value from $16,000 to $1,400,000. They vary in number of apartments from 8 to 340. They vary as to monthly "rental" charges between $5 per room and $20 per room. Average cost per building is about $175,000; average number of tenant-members, around 28; average rental per room, approximately $12. The most interesting feature of this new movement is its diversity. Among the 35 or 40 housing groups there have been nearly a score of different kinds of experimentation in matters of financing, incorporation, control, management. A rapid sight-seeing trip among these groups would show us some of the fol lowing variations: There are language differences. In the Bronx Borough there are several groups of Jewish workers, a few of Finnish workers. In Manhattan there are one or two Jewish groups, two or three associations.of professional and business people. In Queens we come across several small societies made up of workers or small business men of native birth. In Brooklyn there are more than twenty associations, the majority of them Finnish in nationality, but some Swedish, some mixed, some entirely American born; all of them are predominantly groups of workers. There are differences in form of organization. Many societies are incorpo rated under the joint-stock law, and the co-operative features have to be written into the by-laws. Some are organized as membership corporations without capital stock, and monthly rental charges constitute membership dues. The others are under the co-operative stock corporation law. There are variations in business and financial practice. A few have their members pay in at the very beginning a certain percentage of the total value of the apartment, and this constitutes their financial interest in the association for all time. All payments on mortgages are credited to the association, but no individual has any claim upon them. Other associations have their members subscribe for the complete value of the apartment, part of the payment being made on taking possession, the balance being paid in monthly installments with the rent over a period of several years. The member is given additional stock each year for the amortization payments he has made during that year. A small number of the associations conduct their business with most scrupulous regard to the strictest accounting practice, setting aside adequate reserves for depreciation of the building; amortizing temporary repairs and improvements (such as painting, etc.) over short periods; paying interest on stock owned by members, etc. The majority of the associations do not regard such practices necessary; they neglect such matters as depreciation of the property; make no allowance for interest on members' shares. Some of the societies set a flat initial CO-OPERATION 23 payment and a flat monthly charge for all the apartments in the building, regard less of the fact that some are much more desirable than others; and the early comers get the best locations at the low cost. Most of the societies try to fix initial payments and monthly charges in proportion to the relative value as living quarters of each apartment. There are many ways of handling management. One or two groups rotate membership on the management committee alphabetically among all the mem bers. Others elect boards of directors for one, two or three year terms. In some of the smaller houses the entire membership constitutes the board of directors. A few have a board which appoints one of the resident members to act as manager; others have a board which farms out the management and bookkeeping to commercial real estate agents. There is considerable divergence as to prohibiting members from selling or subletting at a profit. On the extreme left is the group which permits only organized workers to live in the house and evicts any member who sets up in private business. This group rigidly forbids any selling of stock or subletting of apartments on the part of the members at a profit. On the extreme right are the associations where, in spite of original intentions that no speculative practices shall creep in, individual members sometimes hold lease to two or more apartments and sublet at a profit; or they sell their stock at a higher price than they paid for it. In between these two extremes are many variations of the co-operative effort to prevent speculation and exploitation of the public. Some associations permit subletting of furnished apartments at a slight increase over the base price; others feel that control of price is impossible, so they put restrictions upon the period of time that a member may sublet. One association says that members may not sell at an advance in price "except at an advance equivalent to the increase in the assessed valuation of the property." Such are some of the different interpretations put upon the term '' Co-opera tive Housing" by two thousand of the residents of New York. They differ as to definition of co-operation when applied to this field of economic endeavor; they differ as to the best methods of administering such a difficult type of business. From such wide experimentation should come some valuable lessons. Early in January The Co-operative League called a conference of co-opera tive housing associations. Eighteen groups sent delegates; and at the meeting a committee of seven was appointed to make an intensive study of the various co-operative housing practices and to work out a proposal for the formation of a permanent co-operative housing federation of these groups. That committee is now holding meetings. Until a cleancut dividing line can be established between the "true" and the "false" co-operative housing associations, no adequate list of all of these enterprises in New York can be compiled with any accuracy. The list that follows does not pretend to be complete, but it is pretty comprehensive. Co-operative Housing Societies in Greater New York Manhattan Unity House, 135 Lexington Avenue. Workmen's Mutual Aim Association, 1786 Lexington Avenue. Rational Workmen's Co-operative Society, 1815 Madison Avenue. United Workers Co-operative Association, 1 Union Square. 105-117 East 102d Street Apartment Houses. Beekman Hill Co-operative Association, 343-349 East 50th Street. Consumers Co-operative Housing Association, 68 Barrow Street. Ethical Culture Co-operative Society, 579 West 65th Street. 167 West 136th Street Co-operative Corporation. Varma Co-operative Homes, Inc., 2056 Fifth Avenue. Suoja, 1 West 127th Street. 24 CO-OPERATION CO-OPERATION 25 Bronx Consumerized Homes, 1884 Belinont Avenue. Yiddishe Co-operative Heim Geselschaft, 406 East 149th Street. Long Island Smmyside First Co-operative Housing Association, Inc., Queens Boulevard and Carolyn Street, Long Island City, L. I. * Sunnyside Second Co-operative Housing Association, Inc., Long Island City, L.I. Brooklyn 517 49th Street Club, Inc. Berkshire Court, Inc., 7th Avenue and 40th Street. Florence Homes Association, 540 40th Street. Park Hill Home Association, Inc., 759 42d Street. Advance Homes Association, Inc., 870 43d Street. Baltic Homes Association, Inc., 4113 7th Avenue. Victory Homes Company, 671 46th Street. "Alku" Co-operative Apartments, 814-816 43d Street. 682 Lexington Avenue Co-operative Tenants Union, Inc. 684 Lexington Avenue Co-operative Tenants Union, Inc. 466 49th Street Club, Inc. Riverview Co-operative Association, 41st Street and 7th Avenue. Sunset Court Association, 4002-4012 7th Avenue. Bay View Association, Inc., 671 47th Street. Sunset Homes Association, Inc., 705 41st Street. Sunset View Association, Inc., 605 41st Street. Corner View Association, Inc., 4401 4th Avenue. Hillside Association, Inc., 566 44th Street. Parkslope Association, Inc., 570 44th Street. Pleasant View Association, Inc., 574 44th Street. Hilltop View Association, Inc., 4404 6th Avenue. Broadview Association, Inc., 4313 9th Avenue. Topview Association, Inc., 807 44th Street. Linden Heights Association, Inc., 702 45th Street. Sun Garden Home, 655 41st Street. Eight Family Home Association, 546 40th Street. Vital Issues LIBERTY A/TOST people do not want liberty. ^^ If they had it they would not know what to do with it. Whenever they are threatened with liberty they dodge it and try to escape. They are so suc cessful that there is not much liberty for anybody. There is a natural human apathy and indifference which prompts people to want to avoid responsibility. "Let George do it" is our national motto. We put it on our coins, but give it a high sound: "In God we trust." Political bosses provide the voters with candidates and tell them how to vote. Pedagogues tell people what to study. The great ethical and religious questions are taken care of. The deci sions as to what is right and what is wrong are all ready made. The fashions relieve people from the responsibility of making decisions about their clothes. In industry the boss tells them what to do. Workers' control of industry which im plies real responsibility of financing and administration, is a fatuous dream. The workers do not want control of industry. They just want more wages. Capitalistic business supplies the wants of the people. If capitalistic business fails to do it, the natural ten dency is to turn to the State. State socialism is the natural successor of capitalism, among people who do not want liberty. Let the State do it. Let the politicians do it. Let George do it. Let somebody else do it for me—and to me. And so more and more the people are directed, driven, told what to do, shoved, pulled, fed, paid, and sent home. The whistle blows, the clock strikes. Sit down, get up, open book, take off hat— it is all thought out and ordered before hand by somebody else. This method prevails because people prefer it. To have a Co-operative Movement re quires that people shall want the liberty to think for themselves; that they shall actually have the audacity to break away from the prevalent method of doing busi ness; that they shall have the boldness to defy disapproving opinions; and that they shall claim the liberty to assume responsibilities for the sake of making themselves masters of their fate. J. P. W. SHOULD WE TAKE THOUGHT FOE THE MOREOW? 'pHAT excellent little monthly, "The •*• Co-operative Official," raises a most important question in its leading edi torial for December, 1925. It is to the following effect. More than eighty years ago, under economic and social conditions which were markedly different from those that prevail to-day, the Rochdale co-operative society was organized. Since that time, right down to this age of giant power, billion dollar capitalist monopolies, in ternational combines of finance, world federations of labor unions, of co-opera tive societies, and of capitalist govern ments, the British societies calmly roll along with this same form of organiza tion, apparently feeling secure in the belief that the solution of the consumers' problems in 1844 was divinely ordained to stand as the solution for all future time and for all future conditions. As a result the leaders of the entire British movement are concerning them selves with minor problems entirely: Shall we sell at market price or cost- plus price: Should dividends be high or low? Shall we give employees a bonus? Fifty years ago these were the most vital problems besetting the move ment. To-day there are vastly greater problems demanding attention, and getting none. The co-operatives of many continental countries are experimenting with the problem of securing business efficiency without sacrificing democratic rule. A few of them are trying to find out just what share of the control and the earn ings of the society's business should be given to employees if the movement as a whole is to be most effective. What should be the relation between pro ducers' and consumers' co-operatives? How can we permeate the largest capi talist corporations and prevent these mammoth institutions from overpower ing the co-operatives? What should be the attitude of co-operatives toward state and municipal control of food or coal distribution; toward state ownership of public utilities? The editors of this valuable paper believe that the British Co-operative Movement needs an advanced body of thinkers who will do for it what the Fabian Society has done for the British Labor Movement. We in America have an advantage over our co-operative cousins. Any drastic changes to be made in England and Scotland must wait upon the conversion of a vast mass of thousands of powerful societies, hun dreds of thousands of officials too busy to stop and think, millions of consumers so steeped in the traditions of their co operative ancestors that any suggestion of drastic innovations may be anathema to them. The co-operatives of the United States are still comparatively few, still in the stages of early experimentation, still open minded and ready for sug gestions. The editors of CO-OPERATION are frequently blamed for discussing co-operative theory too much, and co-op erative practice too little. The latter part of the charge may be well founded. But we can't have too much questioning about these larger and more ultimate 26 CO-OPERATION CO-OPERATION 27 matters, for upon them depends in a very large measure the future ability of our movement to withstand the compe tition of the prevailing capitalist system. Co-operation demands not only the well- oiled machinery that keeps it going to day and to-morrow. It also needs a far-seeing philosophy that seeks out the very fundamentals of social and eco nomic science and seeks to apply them at once to the practical work of the moment. MOEE COMPULSOEY CO-OPERATION? In a recent number of CO-OPERATION we have reported the legislation in Queensland which compels a minority of farmers producing a particular com modity to market through the associa tion formed by the majority of such producers; and we later called atten tion to a similar law being enacted in South Africa. By way of the International Labor Office the news now comes to us that the Ministry of Justice of Czechoslovakia is considering the formulation of a law which would compel all members of con sumers' societies in that country to pur chase their supplies exclusively from their own associations, provided, of course, that these societies have such goods in stock or can supply them within a reasonable time. Members failing to obey this rule would be liable for any losses incurred by the society. What are we coming to? What does it all mean? Is this kind of meddling due entirely to the-office-holder's passion for legislating uniformity of conduct? If the co-operators of other lands are going to permit that kind of thing, they are going to see their co-operative move ment go into a swift decline. In fact, it may be that some of the enemies of our movement, shrewder than their fel lows, know that compulsion and co operation do not mix, and therefore adopt this method of chloroforming it. C. L. AUDITING IS NOT ENOUGH '"THE Bureau of Accounting of The Co-operative League is one of the steps forward in our American Move ment. This Bureau is now auditing the accounts of the member societies of The League. Mr. George Keen, secretary of the Canadian Co-operative Union, throws a much needed light on this subject when he says: " At the best, however, an audit tells a society it has lost money after the event." The Canadian Union, he says, calls for monthly statistics showing gross profits, as well as wage, delivery, and general expense percentages. When a society is seen from its reports to be losing money, the Union gets after the society, advising it how to adjust the expenses to its revenue. In a letter to us, Mr. Keen cites an example. On compiling the statistics last summer, he found a certain society was losing money. He took up the mat ter with the directors. When the figures for the next month came in a loss was again evident. Again the board of the society was advised. When the report for the third month came in the loss of 3.6 cents for every dollar of sales had been converted into a saving of 1.41 per cent by a reduction of the expense ratio from 20.6 per cent to 14.59 per cent. "The drift toward disaster had been arrested," Mr. Keen concludes. Experience, the world over, is showing that sound co-operation demands an expert accounting bureau which is con stantly familiar with the finances of each society. This is the practice in European countries. Where a weekly or even daily report is made to the central bureau, societies do not fail. Any trend toward failure is known before failure takes place. Then the necessary steps are taken to change the trend. Under these circumstances a society would fail only because it wanted to fail; and no society wishes for this disaster. Out of the Accounting Bureau of The League must grow an expansion into the field of supervision. Societies must place their figures before the Bureau, and it must be in a position from day to day to know just how they stand. Our movement will come to this in the course of time. Then we will have our feet planted on the solid rock of permanence. J. P. W. Producers and Consumers in the Co-operative Movement* FEOM THE VIEWPOINT OF THE LABOE BANKEE By PETER J. BEADY President, Federation Bank of New York AMEEICAN labor banks are still in their formative stage but they already have served to bring hundreds of thousands of workers into touch with the ideals of co-operation. As they grow into power they will help mould that future democratic credit structure which is the keystone of a higher national and industrial life. Because it has a practical purpose and because the American workers are ready to grasp anything that will bring finan cial security to them, our bank has ob tained remarkable support. Because of their constructive aims, other labor banks have merited and received public support and widespread commendation. There is always considerable specula tion on just what labor banks can and will do. One of the most absurd is that they will be used as an economic club. Another is that they will slacken the striving of the workers for a higher life. Labor banks are auxiliaries in the work ers' advance. They must remain prac tical banking institutions, existing pri marily to safeguard and make produc tive the resources entrusted to them by their depositors, now over $100,000,000. In addition they must continue to give special services. Only when the total wealth responsive to these institutions amounts to billions, by no means a far distant goal, will it be possible for labor bankers to wield the power to remove those defects that make for the imperfect functioning of our banking and credit system. The great emphasis must now be laid upon making our labor financial institu- * This is the second in a series of articles under this general title. The first was by E. C. Liudeman, from the viewpoint of a Social Scientist. tions powerful for they are still in their infancy and only a few of the larger ones have reached the stage where they can be considered substantial. Only in the degree to which they achieve financial power will they be able to assist the co operative or any other large scale move ment of producers. Labor banks have already served effectively in extending to large groups banking facilities that they did not utilize before; they are performing an educational work of immense value; they have aided in bringing added financial security to thousands of workers' fam ilies and have served useful industry by stimulating fruitful investment. It is laudable and necessary to have ideals but a labor bank that has merely ideals is like a union that by its charter vows to conquer the world but in prac tice adds nothing to its members' pay envelopes. Labor banks must be sub stantial before they can function effect ively and to make them function is our practical purpose now. Labor banks are helpful whenever possible to co-operative enterprises, but all loans must be made on a strictly credit basis. A genuine co-operator would be the last to seek a labor bank loan on the basis of sentiment. Labor bankers should be too conscious of their responsibility to the movement to permit such commitments. There must be effi cient management if profits are to be made for the stockholders, whose prac tical idealism has made the labor bank possible and for the depositors, who sus tain the institution and make it grow. We have the nearest approach to a popular and democratic financial insti tution in the labor bank that is re sponsive to organized labor and in par- 28 CO-OPERATION CO-OPERATION 29 ticular in the bank whose control is vested in a large number of organiza tions and as wide a spread of stock holders as possible. The Federation Bank of New York with international unions, local unions and union members as stockholders, of over one hundred and twenty-five different crafts, comes as close to being such a representative or ganization as any in existence. I cannot insist too strongly that the immediate object of all labor banks should be to justify their formation by achieving a substantial, profit-making basis. That accomplished, we must build up our resources until the pooled capital of labor gives us a position of respect and power in the world of finance. I am of the belief that as we become more powerful, more efficient and more effect ive, our great service to the producers will be to become their investment spokesmen. An instinctive realization of this as the future function of labor finance is the influence which has led to the re markable acclaim and popular support that has been given our banks. The big investment banker is the master of in dustry to-day. Industry is being cen tralized into fewer hands every hour of the day. Mergers of baking companies, milk distributors and other interests are of daily occurrence. We have had ample evidence in the past of the great power wielded by Wall Street, because it is the center of the world's finance, and now, more than ever, is the dominating in fluence over our economic life. With the centralization of industry there is going on constantly a diffusion of wealth and we find that the producers are beginning to hold bonds and stocks in industrial concerns in increasing volume. The advance of the American wage earner through the efforts of the labor union, so that he has an investment margin in his wages, has made the acquiring of security ownership possible and we know there is already a large oc- cumulation of such investments in the hands of the producers. Labor is eager for workers to acquire savings and to make these savings pro ductive by investment in useful indus try. Labor is keen to co-operate to make industry profitable alike for investors and workers. No labor union will lose, it can only gain in strength and respon sibility, when it can class its members as small investors and property holders. But American labor realizes that the diffusion of wealth now going on, even in non-union industries, will not bring representation or control until the work ers who hold these securities become part of the labor banking system and will deposit their proxies with a labor banker to represent them in the decisions that confront their particular industry. The evolutionary process of wealth distribution in conjunction with the rise of people's banks and labor banks will, with the years, transform our dominant financial structure and make it more representative and equal to the strain of modern production and consumption. All this lies in the future for the labor banker who is but the instrument of the mass power behind him. He is limited by that support. Co-operators, accus tomed and experienced in business affairs can be of great aid in solidifying the existing labor banks and by helpful counsel can be of valuable assistance to the labor banks in their localities. Much remains to be done to entrench such in stitutions, to co-ordinate them and to develop their service. Our great need now is to develop power. Slowly, gradually, conserva tively labor banks will grow. As they become the depositories of the workers' surplus cash, of their investments, in the degree that they represent the financial resources of the great majority, they will be able to transform our present finan cial structure. Labor banks merit all the enthusiasm they have received for they can become the entering wedge for workers' partici pation in management of industry. The vital need at present is to make every labor bank a substantial, efficient, well- managed institution, meriting support by the sound conduct of its affairs. We must develop its power to serve. As you sow, so shall you reap. Labor banks have a great mission. It is a fas cinating aspect of the co-operative move ment, quite new to America. Les Cooperatives de Consommation en France ("THE CONSUMERS' COOPERATIVES OP FRANCE" by BERNARD LAVERGNE, Professor in the University of Nancy. Published in 1923.) M. Lavergne has written a most inter esting book. It has such value to stu dents of Co-operation that I wish to give it fuller consideration, than an ordinary book review. Therefore I quote liberally from significant chapters. To Mr. Lavergne the Consumers' co operative societies are the only ones that merit the term "co-operative." The so-called "co-operative societies," organ ized by industrial producers, do not use their profits for the social good of an unlimited number of members, but con centrate their profits among the owners. History shows that they have a tend ency to close their associations to new members so as to have more profits to divide among their own limited group, and that they employ workers at a wage, rather than include them as partners. These methods prevent any hope of their expansion. Although the state by its loans and subsidies has many times saved the majority of these organiza tions from failing in the different crises which have menaced them during the last thirty years, nevertheless even in France, the country of their origin, these workers' associations appear to have no future! A few recent French figures concern ing the agricultural societies for the pur chase of supplies, for credit, and for in surance may be interesting. There are about 6,500 of these agricultural pur chase societies. There are 15,000 eo-operative insurance societies for pro tection against accident, fire, and hail. There are 7,500 co-operative credit banks. These have 300,000 farmer-mem bers and more than 200,000,000 francs in actual outstanding loans. Five thousand of these rural banks in 1922 had re ceived loans amounting to 365,000,000 francs from the state, without interest. Two thousand five hundred Raiffeissen banks are independent of any state loans. There are only 40 or 50 "banques popu- laire" or credit unions among the urban workers in France. They are relatively unorganized as to the control of co operative credit. The Agricultural Co-operative Socie ties for Production and Sale are formed among agricultural producers for the purpose of disposing of their product. The distribution of their profit among the majority of societies is in proportion to the amount of the agricultural prod ucts turned into the society. There were about two to three thousand milk pro ducers' societies, 1,600 cheese and fruit producers in the Jura mountain region, and 300 miscellaneous agricultural so cieties in France in 1921. It will be interesting to all students of Co-operation to learn of the condi tions oj: membership which are required by the French Federation. In the first place the three fundamental Rochdale principles are accepted as fundamental. In addition the Federation excludes from its membership any societies which 1. Limit their number of shareholders; 2. Which allow dividends on share capital; 3. Which allow votes in proportion to share-holding; 4. Which pay more than a limited in terest on capitalization; 5. Which do not give to all members equal voice in the conduct of their asso ciation through an annual general as sembly. So insistent on the pure doctrine of co-operation is the Federation that all societies in France which do not follow the Rochdale practices are called by the Federation "False Co-operatives." It is interesting to understand the relation of the administration of experts of the Regional Union to the societies. In the general' assemblies the members elect an unpaid Council of Administra tion for each society composed of about ten or twelve members. The council employs an Administrative Chief. He is responsible for the conduct of all the L . 30 CO-OPERATION CO-OPERATION 31 enterprises. He appoints three heads of departments: an expert in distribution, an expert in accounting, and an expert in purchasing of commodities. Each one of these experts is personally respon sible for his department. He appoints and removes his assistants. The Gen eral Administrator has to do with the larger policies of finance and the prog ress of the society. He reports to the Council of Administration of the local societies; the Council of Administration reports to the members. Within the co-operative organization the commercial activities are strictly separated from the social activities. The general result of this policy is to central ize the financial and economic aspect of Co-operation in the hands of experts, and to decentralize the social and educa tional work, among the members. In this way both are strongly built on foundations, different, but equally sound. The National Federation has an an nual budget of about 350,000 francs; in addition it receives about 300,000 francs annually in subscriptions for its weekly bulletin, "L'Action Cooperative." The budget of the Federation comes from dues from the membership societies, on a basis of 5 per cent of their turnover; 3 per cent of this 5 per cent is appor tioned to the National Federation; 2 per cent of it to the regional departments of the Federation. The National Fed eration has twenty-three regional de partments, four of which are in Algeria and Morocco. The National Federation employs three permanent secretaries, be sides many other experienced assistants. The author gives in a most interesting manner his opinions on the place of the wage worker in the economic order and the contrast between the syndicalist philosophy and the co-operative philoso phy. The workers in a complete co operative regime will come to see that high wages are not as important as low cost of living; the progress of the whole community is more important than the profits for the few. They will see that it is nonsense for the workers to demand special consideration. Under the com plete Co-operative Democracy a demand for higher wages would be an offense, not against the few employers, but an offense against all the people. The only demand for an increase in wages that ever could be justified would be when it was accom panied by such an improvement in the technique of the industry that there would be a lowering of the cost of pro duction and of distribution. He finds the following benefits accruing to the workers under co-operative industry: "As consumers, the workers partici pate in the distribution of the earnings of industry. As shareholders, the work ers participate in the administration of an industry. "As members of the society they have knowledge of its conduct, finances, earn ings and investments, and have confi dence in the honesty and sincerity of its reports. '' The workers are assured of equitable working conditions and wages such as are now safeguarded only by trade union organization. "Wages will be used as a necessary technique in order to assure the worker a regular revenue. '' As the workers become owners of the industry, as consumer members, the class struggle between owner and employee will cease." The author constantly emphasizes that the major social problem which confronts the world is the equalization of wealth: the just distribution of wealth. But he sagely remarks: "What good would be the equalization of wealth if the amount of wealth were diminished, as a result of a new economic organization? Why let go the prize of to-day for the spirit of to-morrow?" Therefore, the problem of co-operators is how to maintain co operative production and distribution at the same high level of prosperity and efficiency as "Big Business." The criterion by which any economic system must be judged is, "Is it productive?" He asks: "Is Capitalism productive?" Yes, but it is full of costly waste and troublesome problems. It is necessary to conserve the technical efficiency of capitalist industry and yet eliminate its evils. The gradual control of giant in dustry is the big economic problem that faces Co-operation. What is the future of the Co-operative Eegime as seen by M. Lavergne? He believes that state socialism is only a brief stage that must be passed on the road of economic progress, and that to morrow state socialism will give place to a Co-operative Democracy—more effi cient, because it is more flexible in its methods—and more desirable, because it is more respectful of the liberty of the individual. The Co-operative Ee gime, in his opinion, will be a "capital ism without capitalists." The merit of the Co-operative Eegime is, in his eyes, as great politically as it is economically. The great virtue of Co operation will be to set us free from the tragic dilemma which faces us to-day (under capitalism); which is either to become solely efficient as a producer (for profits or for wages) and cease to be a good citizen, or to become a citizen of the Socialized State and a supporter and beneficiary of its enterprises, thereby be coming day by day a less efficient pro ducer. To combine the necessary technical efficiency in the administration of Big Business with democratic control and social approval of the masses is the great problem of modern time. It is to the honor of the Co-operative Movement that day by day it brings us nearer toward a harmonious solution of these apparent antagonisms. A. D. WAEBASSE. News and Comment CO-OPERATIVES IN THE STATE OF NEW YORK Co-operative organizations of all kinds chartered in New York State reported a total volume of business exceeding $92,- 000,000 for the 1924 crop year, according to a summary made by Commissioner Berne A. Pyrke of the Department of Farms and Markets. Of 1,384 co-opera tives incorporated since 1917, the state ment shows 1,056 reported being ac tively engaged in business during the current year. Activities of the 1,056 active organ izations ranged from the marketing of thirty odd farm products to the carrying on of co-operative restaurants and build ing co-operative apartments. Educa tional work and co-operative consumer purchasing are also included. All of this growth has taken place mainly within the last seven years, the record shows. The first co-operative law was enacted in New York State in 1914, but it was four years later that development of co operative activities was stimulated by new legislation. At the beginning of 1918 there were but 17 active co-opera tives in touch with the Department of Farms and Markets, but since that time more than 1,350 charters have been granted to groups of producers and con sumers for nearly every purpose per mitted under the law. A considerable part of the total volume of business was done by co-operatives in the dairying industry. Consumers have also built up extensive units, one of which is now operating four large cafeterias and a laundry in New York City. THE EFFICIENCY OF A CONSUMERS' CO-OPERATIVE SCHOOI The last issue of The Co-operative Student, organ of the Co-operative Edu cational Institute, a genuine Eochdale co-operative, contains the following ex planation of how such an institution goes about selecting its curriculum: "The Educational Committee has been conducting individual and group consultations with our students. This activity of the committee is of tremen dous importance that should not be over looked. "Plans are being made for the ap proaching Spring term. A curriculum is to be adopted and a teaching staff is to be engaged—perfectly normal plans. How does our Educational Committee go about it? "Thus: It starts with the classical co-operative theory that it is the con sumers who create the need for the com modity—an economically sound theory. In our case the consumers are the stu dents and the commodities are the vari ous subjects. "The task of the committee is to de- 32 CO-OPERATION termine the demand of the students for the various subjects. The committee does not resort to miracles or to guess ing, but applies the simple method of consulting the students—the consumers. "In this simple method lies a deep and profound significance, the very fundamentals of co-operation. Our com mittee does not resort to the 'hit and miss' system of determining demand as private enterprises do, and frequently guess wrong, notwithstanding their huge advertising campaigns—an enormous waste for which unfortunately the con sumers pay. "The Educational Committee first finds out how many students will attend our school during next term and subse quently consults these students as to what subjects they have to study. Their replies form the basis of the schedule of subjects for the ensuing term. Since these students are representative of most other students, their choice of subjects is equally representative of the choice other students may select. Subjects that are not in demand are eliminated. Sub jects that are in demand are retained and new ones introduced. "This method determines the success of individual classes without an iota of risk. Sometimes there arise technical difficulties, but generally this method has proved successful since its inception and is meeting with greater success as the committee continues to improve its technique. "There are many other features in these student conferences that are of distinct service to the students individ ually and to the school as a whole. The chief aim is to render service and to avoid waste. In a very large measure the Educational Committee has attained its aim and it is to be congratulated for formulating unique plans for a unique activity.'' DOINGS AT FRANKLIN CREAMERY On January 7th the educational even ing courses began in the auditorium of the Northside building. Mr. Holman of St. Paul is giving a course in "Machin ery and Progress," which consists of 12 lectures. Mr. Louis J. Duncan is giving a course of 24 periods in the study of English. In the middle of February a course of 12 periods in "History of In dustry and Co-operation" will be started by V. S. Alanne. The Educational De partment of the Franklin Co-operative Creamery Association is in charge of the courses. The third series of questions in the Co-operative Study Contest conducted by the Franklin Educational Committee appears in the January number of the Minneapolis Co-operator. Three cash prizes are offered for the best answers to all the questions submitted. Each series of questions contains ten questions regarding the nature, work, form of or ganization, etc., of the Franklin Cream ery Association or of other co-operative organizations. "Come and Hear Your Milkman Sing" is the appeal made in the pub licity conducted by the Concert Com mittee of Franklin when advertising the Annual Concert given by the Franklin Co-operative Male Chorus at the Ly ceum Theatre on January 26th. Neither the Chorus as a body nor any individual members thereof receive any of the pro ceeds of the Concert. This is the second affair of this kind in Minneapolis, and the Chorus is now known throughout the city. GOOD JOURNALISM —CO-OPERATIVE KIND A few, only a very few Co-operative papers published by local Co-operative societies in the United States, really merit much attention or praise. But of those few, there are not many that excel the Waukegan Co-operative Call, a four- page paper published every month by the Co-operative Trading Company of Waukegan, Illinois. These folks not only know what kind of news is interesting and educational, they know how to get it down on paper in a readable fashion. Furthermore, they know that pictures are valuable, so they carry several of them in the same isue often. The December number of this live little Co-operative journal not only car ries two good pictures, but tells some interesting facts about the progress of of the society. They have within the CO-OPERATION 33 past year opened up a branch store in another part of town, and the sales here have increased several hundred dollars each month since the beginning. During 1925 more than 200 new members have been added to the membership role. The big dairy department is growing by leaps and bounds and milk is now being delivered in Lake Forest, an adjoining town. The total busines for the year in the two stores and from the dairy was almost $500,000. GLAD NEWS OUT OF FITCHBURG Several years ago, in the days when the first split occurred within the ranks of the Finnish co-operators of Massachu setts, the worst damage was done to the cause of the co-operative movement in Fitchburg. There the strong United Co operative Society, with its several gro cery stores, bakery, men's furnishings department and milk routes was cleanly divided between the Rights and the Lefts, and the latter finally withdrew their support from the society and opened a competing store owned and controlled by the Workers' Party. During 1925 a conference of all the Finnish co-operators of Massachusetts was held, and the two political groups among them tried to arrive at a com promise which would not limit the inde pendence of either political party so far as political work was concerned, but which would withdraw political matters from the arena of co-operative action. The Lefts there and then promised to close up the opposition store in Fitch- burg. Early in January the word comes that as a result of this conference and two subsequent conferences held in Fitch- burg, the store owned by the Workers' Party has been closed and the members of that party have come back into the United Co-operative Society. So closes one more chapter in the in teresting story of political differences within the co-operative movement. For tunately this chapter has a happier end ing than many. The Workers' Party store was a paying proposition and brought considerable revenue to the treasury. Which is all the more cause for congratulations to the membership of that Party on their move in the direc tion of establishing neutrality within the co-operative movement. CAN CO-OPERATIVE WHOLESALES SUCCEED IN THE U. S.? The Bureau of Business Research of Harvard University has compiled a study of operating expenses in wholesale grocery houses. The study includes the average margins for wholesales doing a business of between $500,000 and $1,000,000 annually. The Co-operative Central Exchange is a Co-operative Wholesale. Here are the figures of the Exchange as compared with those of the average private whole sale house listed by the Harvard Bureau. Private Central Wholesales Exchange 1924 1925 Gross margin ... 11.5 6.28 5.97 Operat'g expense. 11.0 5.64 4.84 Net profit ...... .5 .64 1.13 WINNER OF SUBSCRIPTION CONTEST During the autumn The League office offered a plaster replica of the Sarteel Statue to the co-operative society send ing in the largest number of new sub scribers before January 1, 1926. Lauri Kajandi, an employee of the Finnish Co-operative Trading Associa tion, Brooklyn, N. Y., won this prize for his society by sending to The League office 20 new subscriptions during the three months. Though new subscrip tions came from many other societies, no one of them quite equaled this figure. 34 CO-OPEEATION CO-OPERATION 35 Directors' Page HOW TO INCREASE THE SALES OF CLOTHING, FURNITURE, SHOES, ETC. Hundreds of co-operative stores are carrying these and other such slow-mov ing commodities as laundry appliances, farm machinery, mining tools, or coal and wood. They move slowly in the best of times, and when times are bad they may not move at all. Several of the British co-operatives have found a method of increasing the sales of these goods 50 or 100 per cent. The best ex ample is that of the London Society. The manager of this society found that the members were buying many of the higher priced goods from the instal ment houses and cheap private stores in the neighborhood. Instalment purchase may be a bad habit to encourage, but it offers genuine service to workers who never have more than a few dollars ahead, for it enables them to distribute the cost of a high priced article over several weeks or months. Why shouldn 't the co-operative offer the same kind of service in a less vicious form ? "Twenty-weeks Clubs" were started. Bach member joining a club subscribed for $5 (or some multiple of that amount) and paid in each week 25 cents. After he has made a definite number of pay ments (perhaps two or six or ten) he is entitled to exchange his certificate of membership in the club for goods at the store. He pays for the goods by instal ments, but some of the instalments are paid in advance. The store has to ex tend some of the credit; the member has to extend the rest of the credit. It is fairer to both sides. Usually the clubs are small, and are organized by well-known and reliable members of the society. A woman starts out and signs up her friends in such a club. She goes the rounds every week making the collections of instalments due, and receives a small commission for her services. As she is in a much better position to talk to her neighbors than is the clerk at the store, she brings in much business that would otherwise pass the co-operative. The chief precautionary measure necessary on the manager's part is that of making sure of the absolute honesty of the organizer and collector about whose personality the club is or ganized, for if such authority as this is given to a person of doubtful integrity or one who lacks a normal amount of tact, the store may lose friends instead of making them. Experience has shown that such clubs as these, organized within the co-opera tive, help the members to organize their expenditures, for the weekly payment is put aside every pay day just as the por tion of the rent is laid away for the landlord. The family systematizes and makes easier the spending of the income, and both parents and children are prob ably better clothed and better cared for Here are some of the interesting re sults of the experiment made by the London Society: For the year just preceding the or ganization of the first club (spring of 1923) the sales in the drygoods depart ment were 211,000 pounds. For the second year after the starting of the Club System the sales of this department were 488,000 pounds—an increase of 131 per cent. The business brought in exclusively by the clubs was 24,500 pounds during the first half year; 142,000 pounds the next year, and 245,500 last year. Nor did the cash trade suffer. In 1925 an in crease of 23,500 is shown over the cash trade of 1923. The number of customers served in 1924 was 79.5 per cent greater than in the last year before the clubs were started. The average purchase per mem ber has doubled during the two years. During these two years the turnover of goods has increased from two to three times, enabling the manager to carry a more varied and up-to-date line of goods, with less depreciation and smaller charges for interest on invested capital. Total expense per dollar of sales, after deducting the full expense of organizing and operating the clubs, are slightly more than 50 per cent of sales expense before the clubs were organized. A loss sustained by the departments prior to the starting of the clubs has been converted into a net profit of 40,000 pounds for 1924. Many of the co-operators feared that such an extension of credit trading as this would result in considerable losses. As a matter of fact, losses per $1,000 of sales have amounted to one-tenth the amount saved in interest charges as a result of the more rapid turnover of goods. The average purchase by a club mem ber in the drygoods department is nearly three times the average purchase of an ordinary member in the same depart ment. The average instalment system of pur chase conducted by a private store penalizes the consumer by levying an additional charge upon the goods of 5 per cent or upward. The "Twenty- weeks Club" protects the co-operative consumer from such exploitation. District Leagues EXTRACTS FROM ANNUAL REPORT OF THE SECRETARY OF THE NORTHERN STATES' CO-OPERATIVE LEAGUE The year 1925 marks great progress in the history of the Northern States' Co operative League. It is becoming a real factor in the development of the consumers' co-operative movement in the United States. . . . Most of the time of the Franklin edu cational director during the year has been consumed in his work for the North ern States' Co-operative League. The question of whether or not the Frank lin Co-operative Creamery Association should allow their educational director to spend so much time in his work for the League has been discussed during the year at two or three meetings of the Franklin Board of Directors. Always a decided majority of the board has taken the stand that work done for the North ern States' League is at the same time work done for the Franklin Co-operative Creamery Association. Membership Campaigns A great deal of attention has been paid during the year to membership cam paigns, particularly during the first part of the year. . . . While during 1924 only 71 persons paid $1.00 each, as indi vidual membership dues, toward financ ing the League's activities, at the end of this year our individual membership rolls show not less than 338 individual members paid up for 1925. . . . Constituent Membership While a great deal of attention has been paid during the year to obtaining individual members for the League, it has also been the object of the League to obtain new constituent members. . . . At the end of the year the following so cieties make the constituent membership of the Northern States' Co-operative League: Franklin Co-operative Creamery Ass'n, Minneapolis, Minn., with 5,269 share holding members. Co-operative Central Exchange, Su perior, Wis., a wholesale organization of co-operative store societies (mostly Finnish), with a membership of 36 regular incorporated societies and 24 buying clubs at the end of year 1924, and with a reported individual mem bership in these affiliated societies of 9,399 shareholding members. Cloquet Co-operative Society, Cloquet, Minn., with 679 shareholding mem bers. The Associated Textiles, Minneapolis, Minn., with 403 shareholding members. Union Consumers' Co-operative Society, Duluth, Minn., with 277 members. Farmers' Co-operative Co., Wright, Minn., with 116 members. Wentworth Farmers Co-operative Asso ciation, Wentworth, Wis., 90 members. Farmers' & Consumers' Co-operative Association, Brule, Wis., 83 members. Spooner Co-operative Association, Spooner, Wis., 66 members. 36 CO-OPERATION Workers' Mutual Savings Bank, Su perior, Wis., 34 members. . . . Thus the total dues-paying constituent membership of the Northern States' Co operative League at the end of the year consists of: Nine local consumers' Co-operatives with a total individual membership of 6,995, and one co-operative wholesale group paying dues to the League for 6,353 individual members. This makes the total individual membership of the affiliated constituent societies of the League, for which they have paid dues this year, 13,348. . . . Fraternal Members There have been several additions to the fraternal membership of our League during the year 1925. The Central Labor Union of Minneapolis had voted to affiliate with our League before the Cloquet convention at which they were represented. The Co-operative Cigar Company of Minneapolis also joined the League as a fraternal mem ber during the first part of the year. During the latter part of the year two other organizations have become affili ated witJh our League as fraternal mem bers. These are the Milk Wagon Driv ers' & Dairy Employees' Union No. 271 and the Franklin Good Fellowship Club. This makes the total of organizations in fraternal membership with our League 11, as against 7 at the end of last year. . . . The Cloquet Convention The fourth annual convention of the Northern States' Co-operative League was held this year considerably earlier than the annual conventions held previ ously. It was held at Cloquet, Minn., on the 28th and 29th days of June. . . . There were several changes in the composition of the Board of Directors of the League effected at the Cloquet convention. Of the old board members the following were re-elected: P. F. De More, H. I. Nordby, V. S. Alanne, H. V. Nurmi, and Bskel Ronn. The following new members were elcted: F. F. Burandt of Minneapolis, who served on the board also in 1923; Mrs. C. E. Nelson of Min neapolis; B. H. Anderson, also of Min neapolis, and Frank Yetka of Cloquet. The new board elected as its officers the following: H. I. Nordby, President; P. F. DeMore, Vice-President; V. S. Alanne, Executive Secretary; E. H. Anderson, Treasurer. The Third Co-operative Training School In accordance with the authorization of the Cloquet convention, the third co operative training school was held in Minneapolis from October 5th to Novem ber 28th, inclusive. This school was at tended by 25 students, of whom 14 stayed for 8 weeks, 1 for 7 weeks, 7 for 6 weeks, and 3 for 4 weeks. . . . It is interesting to note regarding this year's training school that less than one- third of the students were attached to co-operative stores or other co-operatives before coming to the school, while almost two-thirds of them had never had any practical experience at the co-operatives. In other countries, where the consumers' co-operative movement is stronger, all of the students at the training schools con ducted by co-operative central organiza tions are drafted from among the em ployees of the co-operatives. Tear Book Undoubtedly the greatest single piece of work attempted by the League during this year has been the first Year Book of the League. . . . While it may be said that the Year Book, as far as its technical make-up is concerned, does not come up to first-class standard and is not what it was planned to be, there is no doubt that it represents an important step forward in the consumers' co-opera tive movement of this country. . . . It is interesting in this connection to note that 40 per cent of the expense con nected with the publishing of the Year Book has been covered by commercial advertising obtained by three of the con stituent and one of the fraternal societies of the League. . . . The "Northern States' Co-operator" The need of a printed organ for the Northern States' Co-operative League has been keenly felt since our League became really active. The Cloquet con vention authorized the Executive Board CO-OPERATION 37 of the League to issue a paper every two months. The Board of Directors of the Frank lin Co-operative Creamery took a very favorable attitude in regard to this mat ter. They decided to cut down the size of their own local publication, The Min neapolis Co-operator, every other month, to four pages, to pay $50 for the five thousand and odd copies of the Northern States' Co-operator which every other month was to be mailed to all Franklin shareholders together with a four-page Minneapolis Co-operator. . . . Correspondence School The Cloquet convention also author ized the Executive Board of the League to offer certain correspondence courses in co-operative and technical subjects. In the beginning of August plans were sufficiently ready to enable the League to offer a two months' correspondence course to those who wanted to prepare for the League's third training school which was to be opened October 5th. There were 25 students enrolled for ihis correspondence course, and of these 12 attended the League's day school. Ihe plans are to take up this correspond ence work again from the beginning of 1926. . . . Field Work During the early part of the year the Executive Board routed two field repre sentatives to visit co-operative stores in the southern, western and central parts of the state. Mrs. Edward Solem was out on a short trip, but became ill and had to give up her work. Mr. 0. J. Arness, however, continued working for the League for several weeks, visiting altogether some 65 co-operative stores and gathering rather comprehensive sta tistical information regarding these stores. . . . Conference of Co-operative Stores Through the field work which our League was conducting during April and May, the idea of holding a confer ence of the co-operative stores of Min nesota naturally suggested itself to your secretary, and after getting proper au thorization from the Executive Board, he began to circularize the Minnesota co-operative stores, urging them to send delegates to the conference at which the problems of the co-operative stores could be discussed and at which an attempt could be made to form a co-operative joint buying organization. The date for this conference was fixed at June 21st and 22d. . . . There were altogether 25 accredited delegates at this conference; 16 of these were representing 9 different co-opera tive store organizations which were not affiliated with any central organization. The conference decided to take steps to form a joint buying organization and elected a temporary Board of Directors for this purpose. . . . Co-operative Propaganda Work A good deal of effort has been made by your secretary during the year to se cure subscriptions for CO-OPERATION, the magazine published by The Co-operative League. . . . Practically all of the 94 yearly subscriptions which during the year have been obtained through this office have been obtained in connection with the individual membership cam paign. Several copies of Dr. Warbasse's book, "Co-operative Democracy"; Professor Gide's book, "Consumers' Co-operative Societies"; Albert Sonnichsen's book, "Consumers' Co-operation," and Pro fessor Fred Hall's book, "Elements of Commercial History,'' have been sold by the League during the year. In speaking of spreading co-operative literature, the League's own Year Book and the Northern States' Co-operator, of which three issues have so far been published, must not be forgotten. . . . Conclusion In conclusion I wish to say that I strongly realize the far-reaching impor tance of the work which our League is trying to do. ... Let us resolve that we shall see to it that at the end of 1926 we shall have still bigger things to re port to our constituents and to those interested in the success of the Co-opera tive Movement. Fraternally submitted, (Signed) V. S. ALANNE, Secretary. Minneapolis, Minn., Dec. 31, 1925. 38 CO-OPERATION The Correspondence File RURAL LIFE VERSUS CITY LIFE Editor, Co-operation: There may still be a steady flux of people to the city from the farms, and yet the rewards of farming not only not tend to decrease, but actually increase. The figures show an increasing productivity of farm labor^ and at the same time an absolute increase in' population on the farms, though not as great as in the cities. The general interpretation among agricultural economists is that the pro ductive capacity of the farms of this country has increased faster than the purchasing power of the mass of the population. This being the case, each farmer will receive a larger income if the number is reduced to those needed to supply what the consumers can consume. During the war we expanded our wheat production beyond what we needed to supply the consumers in this country. When the European demand declined after the war we were producing too much wheat. The income of the wheat farmers this year will be greater than their income in 1923 because there are fewer farmers producing wheat. As to the character of the people leaving the farms for the city, it varies in different sec tions of the country. In the regions where land is poor and cannot compete with the better land, it has undoubtedly been the better elass who have moved out to other farming regions and to the city. In the other regions where farming has been paying over a series of years, the best farmers have, as a rule, been the ones to hold on to the farms. It has been the men with other abilities and likings that have left the farms. They have made better mechanics, lawyers, doctors, and other useful producers, than they would have farmers. I will admit that having fewer people in a given community for a time made it more difficult to carry on a satisfactory community life. But with the development of good roads, reliable automobiles, the extension of the telephone and rural relivery, the perfection of the radio, and the development of consolidated schools and eommunity churches, rural life for the country as a whole, has, in my opinion, started on a permanent uphill path. To me the outlook is optimistic rather than pessimistic. The main danger we have to fear is one common to all the people as a whole, the increasing centralization of the control of the capital wealth of this country. The bankers are taking an increasing toll from our whole production for their service of supplying the necessary capital, owned by other people. Pro fessor Bipley has ably described it in a recent issue of the Nation. Genuine co-operative banking is the solution for the problem. If we can organize our own supply of capital, we can win the fight against privilege. Here is a common ground where producers and con sumers can start to work together. St. Paul, Minnesota. GORDON H. WARD. FROM RUSSIA Editor, Co-operation: I had a very good interview with the Secre tary of the AU-Kussian Co-operatives. They have an immense suite of offices and seem to be very prosperous. I thought you might be interested to see this thing. I am not very intelligent on co-operation, but the Secretary with whom I talked was loaded with figures and gave me a lot of stuff. Everywhere I went in the TJ. S. S. E. I ran across co-operatives—mostly consumers. The big towns are full of them. Usually they are the big stores. The "N. E. P." has a hard life. Maybe the Co-ops will have a slump, but they are sure on the up-grade now. "Co-operatives gain in Workers' Republic . . . At the present time the co-operatives make up about 40 per cent of all the bread consumed in the republic. In Moscow they bake 75 per cent of the bread used. The 77 leading co-operative societies bake more than 80 million pounds of bread per month. Half of all the textiles sold are handled by the co-operatives. They also handle 80 per cent of the petrol. The Secretary of the All Eussian Co-operatives estimates that at the present time 60 per cent of all Eussian workers and 22 per cent of all peasants belong to the co-operatives and that the co-operative societies get from 50 per cent to 55 per cent of the monthly salary paid to the workers of the Soviet Eepublic. If these figures are even approximately cor rect, they give an idea of the immense role that the co-operators are playing in the life of the Soviet Eepublic. While it is still true that the co-operative movement has gained most of its support among the city workers, the peas ants are taking a greater interest in co-opera tion. On June 1, 1925 there were 4,343,000 town dwellers who were members of the co-operatives and 4,838,000 peasants. There were 19,000 co-operative societies in Eussia on Oct. 1, 1923. They had 25,500 shops and 5,896,000 members. Two years later, June 1, 1925, there were 25,500 societies, 49,000 shops and 9,183,000 members. During the eight months ending June 1, 1925, the member ship of the co-operatives increased by almost exactly two millions. Co-operation is no longer a theory in the Soviet Eepublic. It is the method by which workers, and to an increasing extent, the peasants, provide for the distribution of goods on a non-profit basis. SCOTT NEABING. Eussia, December 11, 1925. CO-OPERATION 39 PUBLICATIONS -OF THE CO-OPERATIVE LEAGUE HISTORICAL Per Copy Per 100 3. Story of Co-operation ............. $ .10 7. British Co-operative Movement..... .10 39. Consumers' Co-operative Societies in N. Y. State (Published by Con sumers' League ................ .10 59. Co-operative Movement in Europe.. .05 64. Progress of Co-operation in United States ...................... .05 27. 2. 14. 15. 29. 32. 43. 50. 51. 16. 46. 11. 12. 33. 13. 34. 30. 41. 42. 53. 54. 55. 56. 57. 60. 62. 63. TECHNICAL How to Start and Run a Rochdale Co-operative Society ............ System of Store Records and Accounts . . . . . . ............. A Model Constitution and By-Laws for a Co-operative Society....... Co-operative Education. Duties of Educational Committee Defined. .. How to Start a Co-operative Whole sale . . . . . . . ................. Why Co-operative Stores Fail...... Co-operative Store Management..... How to Start and Run a Women's Guild ....................... How to Organize a District Co-opera tive League ................... Credit Union Primer (By Ham and Robinson). . . . . . . ............ Application Blanks for Membership in a Co-op Society.............. Co-operative Housing ............. A B C of Co-operative Housing.... Model Lease for Co-operative Apart ment House ................... MISCELLANEOUS Model Co-op State Law............ Producers' Co-operative Industries.. Control of Industry by the People through the Co-operative Movement Credit Union and Co-operative Store Credit Union and Co-operative Bank The Place of Co-operation Among Other Movements .............. Co-operative Movement (Yiddish). . " When the Whistle Blew " (Story, by Bruce Calvert).............. Social Aspects of Farmers' Co-opera tive Marketing (By Benson Y. Landis). . . . . . . .............. Co op Homes for Europe's Homeless Real First Aid for the Farmers.... Credit at Cost for the People....... A Better World to Live In,....... Government That Begins at Home. . How a Consumers' Co-operative Dif fers from Ordinary Business.... The " Moral Equivalent " of Jaz£... Buttons (League Emblem in 3 colors) 34 inch diameter........ Sien or Transparency of League Em blem. Green and gold, 8 in. diam.. .10 .50 .05 .10 .10 .02 .10 .05 .10 .50 .10 .10 .10 .10 .10 .10 .05 .05 .25 .02 .06 .25 .10 .05 .05 .05 .05 .02 .02 $6.00 6.00 4.00 . 4.00 2.50 1.00 .65 1.75 1.25 3.00 .25 15.00 ONE-PAGE LEAFLETS (One Cent each; SO Cents per 100; $2.50 per 500; $4.00 per 1,000.) (1) Principles and Aims of The Co-operative League; (18) 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 Move ment?; (45) Schools and Stores; (47) A Man's Right to a Job; (48) Tips to Co-operators; (49) The Way Out; (58) Making Co-operation Succeed in America; (611 Co-operation Brings Disarmament. MONTHLY PUBLICATIONS CO-OPERATION—(In bundle lots, $7.50 per hun dred). Subscription, per year............. .$1.00 HOME CO-OPERATOR, 4 pages...... .$1.00 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 Move ment. They may be ordered through The League: Bergengren, Roy F.: Co-operative Banking, A Credit Union Book ..................... $3.00 Blanc, Elsie T.: Co-operative Movement in Russia . . . . . . . ....................... 2.50 Brightwill, L. R.: Animal "Co-op" Book—For Children............................ .15 Faber, Harald: Co-operation in Danish Agricul ture, 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 American edition and notes, 1922. Cloth, $2.00; paper bound ..................... .90 Hall, Prof. Fred: Handbook for Members of Co- . operative Committees ................... 2.00 Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, $2.00; paper bound . . . . . . . ....................... .60 Holyoake: Rochdale Pioneers ................ 1.00 Howe, Fred C.: Denmark, a Co-operative Com monwealth, 1921 ....................... 2.00 Jessness, O. B.: Co-operative Marketing of Farm Products ......................... 2.50 Madams, J. P.: The Story Retold............ .50 Nicholson, Isa: Our Story................... .25 Owen, Robert: Autobiography .............. .50 Potter, B.: Co-operative Movement in Great Britain.............................. 1.00 Redfem, Percy: The Story of the C. W. S..... 2.00 Redfern, Percy: The Consumers' Place in So ciety, 1920 ............................. 1.00 Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918 ........................ 1.00 Smith-Gordon and O'Brien: Co-operation in Denmark........................... 1.00 Smith-Gordon and O'Brien: Co-operation in Many Lands, 1920 ..................... 1.50 Sonnichsen, Albert: Consumers' - Co-operation, 1919. Clotb, $1.50; paper bound......... .75 Steen, H.: Co-operative Marketing............ 1.00 Stolinsky. A.: The Co-operative Movement. (In Yiddish). ............................ 1.00 Wai-basse, James P.; Co-operative Democracy.. 2.50 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 . . . . . . . ..................... 1.00 Woolf, L.: Socialism and Co-operation........ 1.50 Co-operation in Great Britain and Ireland, paper .25 CO-OPERATION, Bound Volumes, 1915 to 1925 inclusive, each ......................... 1.25 Transactions of Second American Co-operative Congress, 1920 ......................... 1.00 Transactions of Third American Co-operative Congress, 1922 ......................... 1.00 Transactions of Fourth American Co-operative Congress, 1924 ......................... 1.00 Northern States Year Book, 1925. Paper..... .20 The People's Year Book, 1926. Cloth, $1.00; paper bound ........................... .60 (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 tbe United States. Join The League and thus help promote the educational work of the Co-operative Movement. Subscribe foi the Monthly Magazine and keep in touch with the Movement. Enclosed find $......... for D Subscription for CO-OPERATION, $1.00. D Membership in The LEAGUE, $1.00. Name. Address. Co-operative Central Exchange Wholesale Grocers and Jobbers, Bakers We supply goods to Co-operative Societies ONL.Y. We are owned and controlled by Co operative Societies. We are organized to enable Co-operative Societies to ila collectively what they cannot do Individually. Co-operative Central Exchange Offices, Warehouses and Plant: Winter Street and Ogdeu Ave., SUPERIOR, WIS. Co-operators" Ltd. Mutual Fire Insurance Co. is now writing insurance in State of Wisconsin THE PRODUCER Issued Monthly Price 3d. If you want to keep in touch with business, organization, administrative affairs, and problems of the British Co-operative Movement, read THE PRODUCER. Published hy Co-operative Wholesale Society, Inc0 1 Balloon Street, Manchester Post free 4 sh. Cd. a year. The Trade and Technical Organ of British Co-operation. THE NEW SECRETARY'S LEDGER Published by the Educational Department Central States Co-operative Wholesale Society (SOS Converse Ave., E. St. Louis, 111.) is the form for keeping the Membership Ledger of a Co-operative Society which provides ample and proper space for all transactions with a maximum of effi ciency and a minimum of time, worry and errors. Send for Samples and Prices Co-operation in Scotland In no .part of the world is Co-operation fur ther developed, or more successfully practiced than in Scotland. If you wish to keep in formed, read "The Scottish Co-operator" (Published Weekly) Subscription: Year 12 sh.; half-year, 6 sh. Address, 119 Paisley Road, Glasgow, Scotland The Madras Monthly Bulletin of Co-operation ROYAPETTAH, MADRAS, INDIA The premier monthly on Co-operation in India. Special articles on Rural, Con sumers', Agricultural, Credit and Indus trial Co-operation; and Co-operation Abroad. Subscription Rs. 4/12 per annum. The Canadian Co-operator Brantford, Ontario, Canada The organ of the Canadian Co-o"era- tive Movement, owned by and con ducted under the auspices of The Co-operative Union ot Canada. Published monthly 75c per annum 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 (MOTION A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in voluntary association, produce and distribute for their own use the things they need. Published Monthly by THE CO-OPERATIVE LEAGUE 167 West 12th Street, New York City J. P. WARBASSE, Editor Entered as Second Class matter, December 19, 1917, at the Post Office at New York, N. Y., under the Act of March 3 1879. Price $1.00 a year. VOL. XII, No. 3 MARCH, 1926 10 CENTS THE HEAD OFFICE of one of the largest and lest Co-operative Telephone Companies in the country: The Farmers' Mutual Telephone Company, Whatcom County, Washington. These farmers have their poles and wvres strung between the towns and villages of the whole county, a>n.d there ave eight other ExcJia-nges, most of them in buildings own-ed by the Co-operative. Connections can lie made through all these centrals with the Pacific Telephone Company, and from two of them can be made with the British Columbia Telephone Co. These farmer co- operators reach the outside world by wire, as well as by their co-operative marketing associa tions, which handle their dairy products and eggs. ill , 42 CO-OPERATION What it Means for Telephone Users to Co-operate* A N excellent example of the benefits derived from co-operation may be found •"• in the history of the Farmers Mutual Telephone Company in Whatcom County, Washington, started a little over 20 years ago, when a large percentage of the fine farms now existing in that section were undeveloped. There were many poor roads and these were often narrow and obstructed by trees and brush, making it hard to build good telephone lines. But this company has pushed ahead until it is now the largest Mutual Telephone Company in the west. The start of the company was due to the need of communication in the county, so in 1902 and 1903 some people purchased their own phones and built party lines. These lines were first run so as to take in the.principal farms, and the shingle and saw mills. Small switchboards were placed in the homes of families in each place. In the early summer of 1905, these various groups had a meeting at Belling- ham and decided to form a mutual company to cover the entire county outside the city of Bellingham. They secured a fifty-year county franchise, recorded the articles of incorporation. The by-laws provided for 2,000 shares of stock at $15 a share. It was so arranged that each person who had furnished and set nine poles and contributed $1.75 toward the purchase of wire and help on the switchboard was considered to have given the value of one share of common stock, or he could pay the cash for his shares of stock. Bach subscriber also had to furnish his own phone and batteries. Now the batteries are all furnished by the company. The common stock was easily sold all over the county, wherever lines were expected to be built, many purchasing stock who never secured a phone, but wished to help the enterprise. By 1909 about 1,000 shares had been sold. In the beginning the company had only single lines that were heavily loaded, except some people living near the centrals who furnished their own equipment and had double, or metallic lines. The switchboards were of little value and were usually placed in the home of the single operator. The operators were necessarily paid a low wage. The lines were often repaired by the subscribers or the local director himself. As the organization grew, the lines extending toward other centrals were joined, thus giving connection between the towns. These lines were gradually replaced by metallic trunk circuits. The subscribers' lines were slowly divided up and metallicized until at present fully 95 per cent of all the lines are metallic circuits. Some of these lines are long and if the county were served by a regular old line stock company many non-paying lines would never have been built. Properties have been purchased at every one of the nine centrals except at Blaine which is leased. The company owns good concrete or wooden buildings to provide for the exchanges. In 1911 to 1914 the phones were classified, and rates were filed for the different classes of residence and business phones and distinction made between party and main line. A surplus began to show from this time on, and all profits were applied to paying the indebtedness or extending the system. By 1915 the company was able to secure any funds that might be needed without much effort. Slight increases in rentals have been made as needed to keep the company on a paying basis. No dividends have ever been declared to the stockholders. The directors are elected annually, one man from each Central district and one director at large. They meet monthly and canvass all expenditures. The local director is especially valuable to the organization. He can * Information supplied by L. A. Jones, secretary of the company since 1915. CO-OPERATION 43 adjust grievances at once. He knows best what is needed in his district. Subscribers can see him almost any time. This gives prominence to the local ownership, for each nominates its own candidate for director. Bach shareholder has but one vote. No proxy voting is allowed. The greatest number of shares held by one person is four; a share of stock is of little value, unless one has a phone to make use of it. The original invest ment of each shareholder was a little less than $45. During these 20 years, there is a plant value back of each share of stock to the amount of $125. The company is managed from the general office at Lynden. Here the president has charge of the work crew which does all the construction and repair work; supervises the service men at all the centrals; purchases all the poles; plans all new work and re construction, and reports to the Board all work needed to be done. By the fall of 1917 the poles and lines were in very bad condition, and when a heavy sleet storm destroyed most of the equipment, the stockhold ers raised $35,000 among themselves and rebuilding was begun with heavier poles and much cable line. This company was the first co-operative organization in this county. Later the dairymen and egg men were organized. Hundreds of people are members of two or more of these organizations to-day. There are few changes among the employees. The majority of them have been in the service of the company for several years. They own their own homes where they are employed and take a part in the various community activities. One of the chief sports of the Bell system is buying up these farmers' mutual companies at a figure slightly above what the shareholders have paid, and then raising the rates to recoup on the investment. And this method of killing off the co-operatives has been remarkably successful. In view of this fact it is refreshing to learn of the fine fight and the strong stand taken by the Farmers' Mutual Company of Whatcom County. These people have planned their work so carefully and well, and their association is now so strong financially that there is little danger of their being swallowed by the Bell system. Some figures on the activities of this company are interesting: ED. BROWN Of Ouster, was the first President of the Company and one of the most active pioneers. He is now a State Senator and Chairman of the Board of County Commissioners. Average number of phones................. Average number of calls per phone month. Miles of pole line.......................... Miles of wire............................. Number of shareholders.................. Operating revenue ....................... Net operating income.................... Value of plant—net...................... Paid-in capital stock..................... Surplus reserves ........................ 1921 2,545 212 583 2,987 961 169,336 9,765 82,599 15,330 31,974 1922 2,497 220 686 3,111 964 170,107 11,447 83,086 15,375 53,186 1923 2,532 205 590 3,225 849 171,360 11,281 85,298 15,390 64,467 1924 2,608 210 617 "860 172,791 9,768 98,337 15,435 74,230 ,1 „ .'illi,! 44 CO-OPERATION CO-OPERATION 45 Vital Issues CURING HIS WITH BILLS 'TPHE Indians were driven out and the •*• farmers now have possession of the land. But they are having more trouble with it than the Indians had. The Indian medicine men beat torn toms when things were not going well, and usually things got better. The farmers' medicine men introduce bills in Con gress—and things get worse. Now all the talk is about the McNary-- Haugen bill and the Hoover-Jardine bill. The first aims to create a domestic short age of food stuffs by encouraging ex ports of farm products. The second aims to cause a domestic shortage by reducing production. The end result of either of these plans is increase of prices of foods to the consumer. And some way or other in this hocus pocus the farmer is supposed to be benefited. The United States is composed mostly of land—and some water. The land is supposed to be used to raise food. Now it is used to raise prices. Land is more and more employed for speculation. But to speculate, one does not need to live nine miles from a movie screen, so now most of the folks have gone to town, and left nobody but the hired man on the farm. Once an agricultural country, the U. S. A. is now a commercial country. The majority of the population is in the towns. And the majority of people are more interested in low prices for food than they are in high prices for farm products. In other words, the balance of power in Congress, where these bills for farmers' ills reside, is in the hands of the representatives who want the votes of the consuming people, most of whom live in towns. L. S. Herron, editor of the Nebraska Union Farmer, is one of the few men who keeps busy trying to set the farm ers straight on these matters. But it is difficult for a wise and discerning ob server of economic events, such as Mr. Herron, to compete with the medicine men who claim to be the farmers' friends and protectors and who have a trail leading from the farms to the District of Columbia—well trodden, but slippery. SOUND BUSINESS METHODS We realize more and more that the day has passed when a co-operative so ciety can thrive on sentiment, ideals, and good will. Good business is also an es sential. We are learning this from the experience with the League's Accounting Bureau. The day must come when socie ties, in order to qualify for membership in The League, must not only be carried on under true co-operative principles, but they must keep books that show where they stand financially. They must account accurately for the trust of funds which the members have placed with them. They must submit to periodical auditing. And all of this information must be in the hands of the Accounting Bureau of The League. The Bureau is learning things about societies, and giv ing them advice that is vital for their existence. This experience is similar in every country. A society in Canada has re cently closed up for lack of proper ac counting and sound business methods. Mr. George Keen, the Secretary of the Canadian Co-operative Union, has an appreciation of good business methods because he has seen the havoc played by their neglect. In this conviction he writes: "I feel that the most urgent need, both in the United States and Canada, is national unity and co-ordination, with the view to the mobilization of the judg ment and experience of each organization for the benefit of the whole movement; and the provision of machinery whereby the weak may be guided until they be come strong. I am of opinion that the national co-operative union should be something more than educational to meet our conditions. While it is im perative there should be complete local autonomy, we ought to function commer cially with something of the authority of the executive of a big chain store cor poration, and have at our service good business men of sound judgment, and having the necessary initiative and resource to foster satisfactory develop ment. We should not dictate to the local retail society, but such men having behind them the moral influence of a united movement should, in some re spects, be almost as effective, and, indeed in one respect, more effective than the autocratic controller -of chain stores." Profit business is all business and no sentiment. Co-operative societies may have as much sentiment as they will and ideals they must have; but they will fail unless their books balance; and failure is about the worst thing that can happen to a society. Failure has only one merit: it stops a bad society from doing any more harm. But every failure leaves a scar upon the body of Co-operation. GOVERNMENT TO SUPPLY FOOD TO PEOPLE It is reported that the British Govern ment has under consideration purchas ing the staple foods in large quantities and selling them to the people at cost, thus cutting out profit from food stuffs. Premier Baldwin suggested this step in Parliament some time ago. Now it is reported that British agents are in the United States studying sources of sup ply preparatory to rendering a report. The situation in Great Britain is stead ily moving from bad to worse, and the political leaders know that something extraordinary must be done. The question naturally arises, why should the Government go into the new business of distributing food when a third of the people are already organ ized into co-operative societies which have seventy-five years of experience behind them and which already consti tute the largest distributors of food in the country. They are the only organi zations with the machinery and the trained people who know how to dis tribute food at cost. It will probably come ultimately to the co-operators, but the politicians first have to try their hand. J. P. W. BANKERS AND CHRISTIANS IN DEBATE '"PHE bankers and the leaders of the Christian Church are in disagree ment again. Which may surprise the hardened sinner who cannot see that there is any distinction between them. This is how it happened. President Coolidge told the country that reduction of taxes on large incomes would benefit the whole people, for it would encourage investment of more capital in productive industry. Immediately the Department of So cial Action of the National Catholic Welfare Conference vehemently protests that whether Mr. Coolidge is right or not is beside the point. We do not need nor want more capital in business; there is too much of it there already. It will do better service if used in some form of public work or in the payment of salaries to government employees. The Federal Council of Churches (Protes tant) heartily endorses this view. And then comes the counter-attack from the spokesman for the National City Bank of New York, to this effect: The churchmen do not know what capi tal is. It is not money, but wealth in productive form. And there can never be too much wealth in the form of raw supplies. Railroads are inefficient be cause they lack proper capital. The people suffer from a housing shortage because there is not enough capital in the form of materials to provide cheap houses. Higher wages, shorter hours, a higher standard of living for the masses all depend upon increased productivity, and increased productivity all waits upon new capital in the form of equipment. When bankers and churchmen fall out, we Co-operators hesitate to mix into the row, for such spectacles are not to be enjoyed every day in the year, nor in every country of the globe. But in this instance our conscience force us to raise a feeble cry of protest to all three expressions of opinion. 46 CO-OPERATION CO-OPERATION 47 Our good President, Honest Cal, is no economist anyhow,—and is probably repeating the lesson someone else set for him, so let's not waste time here. Our brethren of the churches seem to be sparring at windmills. Does it make so much difference whether more or less capital goes into industry, so long as industry is controlled as it now is, and directed primarily to the making of money rather than to the satisfaction of the needs of men and women and chil dren? It is not too much capital from which our industries suffer, but too much gambling with capital and with the industries themselves. And the respected bankers make their colossal mistake in their cheeky assump tion that the chief purpose of railroads is to provide transportation to the pub lic; that the realtor and building con tractor is animated first and foremost by a craving to see folks well housed; that the capitalist generally wants busi ness to nourish solely that the masses of workers may have better living condi tions. Perhaps even more important, is their quiet assumption that all capital freed from taxation naturally flows into productive industry. We just wonder, by what kind of reasoning can they list real estate speculation, munition manu facture, the making of hundreds of mil lions worth of cosmetics, narcotics, ex travagant clothing and other personal adornment; the billions that go into sales promotion, the loans to foreign governments for military expansion, and countless other doubtful investments as productive in the best sense of the word ? We have an interest in the question of how income taxes shall be appor tioned, but it is a mild interest only. Our greatest concern is with the sources of income themselves—the industrial and commercial institutions of the country and how they shall be controlled and to what end directed. C. L. Producers and Consumers in the Co-operative Movement* FROM THE VIEWPOINT OP AN URBAN CO-OPERATOR By U. G. MOORE E do not spend our entire lives as producers, nor even the major part, and our present struggle is to lessen still further the place of production in our lives. We come into the world as non-productive consumers and continue as such for several years. As age dark ens the pathway, we again reach a non productive milepost. If we accept as true, the figures used from time to time relative to the dependency of old age, this is the lot of the overwhelming ma jority of mankind. We cannot but admit that for a considerable portion of our lives we are just consumers, not pro ducers at all. Prom the hour of our birth to the time the last rites are spoken over our stilled forms, we are consumers. Whether we work, or play, or sleep, we consume. Consumption is the constant thing in our lives; production but a means to that end. Even the slogan of some protesting groups, "To the worker the full fruits of his toil," is not a cry for more production but a cry for more consumption. Most of us are agreed that the con sumer should, as far as possible, produce * This is the third in the Series of Articles under the title. The two previous ones were from the viewpoint of the Social Scientist and the Labor Banker, and were written by E. C. Lindemann and Peter J. Brady. what he consumes. We are also agreed that the producer should consume all he produces, using these terms in a mass or social sense, since this is a day of mass production, but always keeping in mind that the sick, the infirm and help less comprise a group of consumers un able to produce. When the time arrives that all consumers are producers and all producers are consumers, i.e., when industrial relations are so adjusted that the two are one and inseparable, then this period of disputations will have passed, and all such distinctions. In the meantime, we must keep clearly in mind the inevitable antagonisms that grow out of organizations based solely on production. The consumer co-operator believes that producers' co-operatives are an improve ment upon individual capitalistic indus try inasmuch as the individualistic viewpoint has been diluted slightly by a group viewpoint—the individual pro ducer has become aware of a common interest with another producer of the same commodity and has to some extent discarded money as the measure of man's personality. However, he is still antag onistic to producers of other groups. For example: if he is a producer of citrus fruits in California, he tries to outsell the apple grower. He is even in competition with the citrus producer of Florida, of Japan, of Spain. Some time the gap between these far-separated citrus growers may be bridged, but there is still the gap between them and the apple grower, and the fig grower, and the prune, peach, pineapple, berry and other growers ad inf initum, no group of which consumes what it produces, and so all find themselves in a turmoil of com petition ; engulfed in a constant rise and fall of uncertainty, as to the loyalty of their membership, as to the prices and sale probabilities of their products. Con sumers co-operation has been able to minimize selling uncertainty and in crease both knowledge and funds. Of the hundreds of Producers' Indus trial Societies organized from Owen's time to the present, exceedingly few have survived. A few have been taken over by the Consumer Societies; a few have continued separately by hanging their existence upon the friendly pur chases of Consumers' Societies; a few have degenerated into the usual profit- taking establishment; but the vast ma jority have passed into vapor. There is a type of Producers' Society, such as creameries, in which producers of raw milk band themselves together to produce another commodity from this raw material, but this process is pri marily one for profit since the milk pro ducer must find some one to buy his creamery product—he cannot use it him self. These have met with reasonable success, but what will they do when the consolidation process gets under way in this field? Unless there are good, strong Consumers' Societies to take their products, will they not go under ? There is still another form of Pro ducers' Co-operatives which would be better termed, Marketing Co-operatives —the Wheat Pools, California Fruit Growers Ass'n, Washington Co-operative Egg and Poultry Ass'n, etc. Here, there is co-operation in marketing, but produc tion for profit is still the main factor. It has been demonstrated that the first form cannot exist in any appreciable degree without the help of Consumers' Co-operatives. It seems quite likely that this is soon to be demonstrated with the second form. If the third form can hold together the majority of farm pro ducers in any given line and maintain its monopoly, it seems likely that many storms will be weathered. But if it suc ceeds in this respect, its outlook being production for profit, it will, in all prob ability, follow the path of all monopolies unless checked by consumer organiza tion. It is possible, and quite probable, that Consumers' Co-operatives in the U. S. will find it necessary, and desirable, to deal with the Marketing Co-operatives. It may be that this contact will lead to a cumulative change in the mental atti tude of the latter that will bring them into the consumer fold by mutual con sent, but from past experience one is led to the conclusion that the Consumers' 48 CO-OPERATION Societies will be forced into farm production as a consequence of unsatis factory relations with the other co-opera tives or gravitate into farm production as a natural result of consumer psy chology—most likely because of both conditions. The future society, it seems certain, will be determined by the ability of any form of organization to furnish to the consumer in satisfactory quantities and qualities and at satisfactory costs the things he desires to consume. The con sumer will eventually change or sweep aside the organizations that do not func tion to his satisfaction, and set up his own organizations over which he can exercise direct control. So far, we have been dealing with or ganizations of producers. What now, is the place of the individual producer in the consumer organizations? There are two phases, both largely time elements—transition and consum mation. As long as most of us are tarred from the black pot of individualism and have but a faint social sense; as long as the producer attitude exists; as long as there are so many poor receiving sets above the neck; as long as there is lack of under standing as to industrial and distribu tive processes and economics and mathematics and accounting, there will be disagreement and conflict between the Consumer Society and its employees, with the fault now on one side and now on the other. It is the work of Educa tional Committees within the Consumer Societies to cure these mental astigma tisms and myopias, and hypermetropias if you please, for as I see it, co-operation is but a channel through which human beings may function with the least fric tion. It does not immediately remove frictions but it does stimulate a will to understanding and provide a means by which an understanding may be reached. This is the transition process. While Consumers' Co-operation is but a fractional part of society, there must be machinery for securing speedy ad justments of real or fancied injuries. Such machinery does exist in varied but imperfect forms. It is not possible within the limits of this article to go into detail. This may be obtained by referring to Co-operative Democracy by Dr. Warbasse; Consumers' Co-operative Societies by Professor Gide; People's Year Book for 1924. Theoretically, the fact that the em ployee is a society member ought to re duce friction to a minimum, and usually does, but for reasons given in a preced ing paragraph, some of the member employees and many of the non-member employees have the producer attitude and want their own way regardless of anything else. Disputes that cannot be settled by con ference between co-operative managers and employees are, in England and Scot land, referred to a committee from the Co-operative Wholesale Society and the Trade Union Congress, and usually have been settled promptly and satisfactorily. In Germany, after much controversy, a satisfactory working agreement was reached between the Trade Unions and the Co-operatives, but with the break down following the war, trouble arose, wild strikes were indulged in, and much confusion has dogged the path of the German co-operatives in their attempts to deal with their employees. Finally a national agreement was reached with two of the unions and while this has not brought the much hoped for peace, it has been of help, and coupled with the Labor Code passed by the govern ment, settlement of these difficulties seems to be progressing as rapidly and favorably as could be expected. There was much demoralization also in Austria, but the co-operatives seem to have found it easier to reach an un derstanding with their employees al though the results have not been all that the co-operatives had a right to expect. Belgium appears to have had fewer open breaks than most other continental countries, due in part to the fact that the trade union movement is largely co operative, i.e., it has developed under the wing of the co-operatives. Besides, the arrangement of boards or committees for the settling of disputes is of a char CO-OPERATION 49 acter to make satisfactory settlement possible. The People's Houses, or co operative centers, which have grown up in many of the Belgian cities, have aided in developing this condition, since they have brought the various groups into frequent and intimate contact with each other and given them an oppor tunity to "have it out" openly and so cially outside of committee. The story in Holland, Sweden, Nor way, Poland, Russia, Switzerland, is much the same. Everywhere, a willing ness to meet employees even more than half way, to do everything possible and still preserve the co-operative organiza tion, in spite of unreasonable and im possible demands, no doubt instigated in many instances by capitalist business. The workers in British Co-operatives on the whole have better hours, better pay, better working conditions than those in privately owned establishments. This is true practically everywhere, par ticularly when the consumer society be gins to make headway and develop resources. The following quotation from a report made by Vogt Fiser, Secretary of the Czecho-Slovak Co-operative Society of Prague, represents the attitude of prac tically all consumer co-operatives toward their employees. "I do not wish to say, and I must not say, that it is all honey with the staffs of our workers' co-operative en terprises, but it is true that all the co-operative societies and the co-opera tive undertakings together as a rule 100 PER CENT CO-OPERATORS One of the members of the Milford Co operative Society, Milford, N. H., last year bought from his co-op, store goods to the value of $618. He had a large family to feed, and he fed them entirely out of the co-op. The Milford Society paid a 10 per cent rebate that year, so this member was well rewarded for his loyalty. We should like to hear from other Co operatives which can quote a figure to match the purchases of this 100 per cent Co-operator. But of course we are inter ested oinly in the head of a family; not in the proprietor of a restaurant, hotel or boarding house. grant their employees better payment than private employers do, and that the functionaries and heads of co-operative societies regard their employees as fellowmen and comrades and not as workers placed beneath them." In the last report of the Consumers' Co-operative Services, Inc., a New York City organization, occurs the following: "In a Co-operative, no question in volves both policy and practical admin istration more vitally than does labor. A distinct sentiment exists among our members that we should pay as good wages and give as good conditions as a going business will permit. The Board of Directors heartily endorses that senti ment." Regarding the final stage, I again quote Dr. Warbasse: "When more than half of the con sumers are employees in the co-operative industry, it is evident that the voice of the workers becomes the majority voice. By this evolutionary method, what be gins as consumers' control moves slowly on until it becomes workers' control of industry"; theoretical oneness of inter est being realized in the actual merging of consumer and producer into one com mon and individual interest. Thus, does our theory that consumer organization provides for the producer a larger place within its folds than he can find elsewhere, and offers the surest and quickest plan for reaching indus trial democracy in comparative peace, find abundant justification in the ac tualities of co-operative practice. ARE LABOR BANKS CO OPERATIVE? A member of the largest Labor Bank in New York informs us that at the last annual meeting of the stockholders of the bank, it was voted that the 10 per cent limit upon earnings to stockholders be abolished. Fear was expressed that the depositors might get something that be longed to the stockholders! This is a confirmation of the fears expressed many times by co-operators the country over: that the labor banks, now only semi-co operative, would gravitate toward capital ism rather than toward co-operation. 50 CO-OPERATION Foreign SOME MORE OFFICIAL MEDDLING The Co-operative News, of England, relates the following incident: Mrs. Margaret J. Dodson was granted 300 pounds compensation when her hus band was killed in the Beckermet mines recently, and she applied to the County Court to procure her money immedi ately. The man who represented her stated that she wanted the funds to in vest in her co-operative society. His Honor, Judge Taylor, advised her to invest in the War Loan fund, where she could get 5 per cent. Her repre sentative insisted that she could get 5 per cent in the Co-operative, and urged that the co-operative society was as strong as the Bank of England. Also, it was nearer her home; she could get the money out on short notice, which would not be the case with the War Loan investment. "They say there is no fool like an old fool," replied the Judge. "I think there is better security in the investment I have mentioned." "The officials of the court could tell us something about getting money out of the War Loan," insisted her spokes man. "If the money is invested there it may be tied up for years." "I order it to be invested in War Loan," said the Judge. "I think the widow ought to have a say in the matter," was the answer. "She has not. The matter rests solely with me by Act of Parliament." HOW CO-OPERATORS SAVE ON COAL There has been another Koyal Com mission sitting in England, and this time it is to study the prices of coal. One of the findings of this Commission is that the co-operative societies handle coal more economically than the private deal ers, and thus bring fuel to the consumers at a lower net price. In 1924 the Ministry of Mines showed that the average cost for managerial overhead of the private firms was four shillings, one penny per ton; while for the co-operatives it was one shilling, eight pence, barely two-fifths as much. This is all gain for the co-operators who own the business and get the benefits of any economies. ANOTHER BRITISH LABOR LEADER SPEAKS Mr. A. J. Cook is to-day more in the public eye of Great Britain than any of the other well known radical laborites of that Empire. He is General Secretary of the Miners' Federation of Great Britain which forced the Conservative Government to grant a subsidy to the mining industry a couple of months ago. Mr. Cook's advice on Co-operation is as follows: "I believe in scientific fighting, to hit the other fellow out and not punch my self. That is why they don't like me; they don't mind you because many of you have not yet realized the value of real co-operation. Many of you are out side the Co-operative movement, and it is the first duty of a trade unionist to join the Co-operative movement. When every trade unionist realizes the value of the movement in a struggle then our scientific organization will be on the way to realization. Link up with the Co operative; and until you have done so don't blame the private traders for doing what they consider is best for themselves.'' THE FAILURE OF A GREAT CO OPERATIVE BANK On June 2, 1925, the world-famous Danish Co-operative Bank closed its doors to its depositors and members. For months since then the question in the minds of thousands of co-operators has been, "Why?" "How could such a powerful institution fail?" The answer appears in the Co-operative Of ficial for December. The bank was opened in 1914 and in corporated as a joint stock company in which votes were allotted in proportion to shares owned. From the very begin ning the bank engaged in all phases of the banking business as well as in financ ing co-operative institutions and the CO-OPERATION 51 agricultural industry. The progress was so rapid, especially during the boom days of the war period, that the directors failed to exercise the necessary caution. Branches were established in all parts of the country and loans extended most freely. Finally, after the farmers had tried many devices for increasing the market for their dairy products, they decided to promote the export business, and a loan of twelve and one-half million kronen was procured from the bank to finance the new effort. Though all the dairy so cieties were to profit from new markets abroad, only one-quarter of them as sumed liability for this loan. When the post-war depression wrecked the attempt to form an export trade the bank had to stand the loss. At the last moment a new Board of Directors and new managers were ap pointed, and these men tried to raise twenty millions of additional capital. The Danish State Bank, the Co-opera tive Wholesale Society, the Co-operative Cement Society, and the Co-operative Foodstuffs Society all contributed their quota, amounting in all to eight millions, but the dairy and bacon societies refused to contribute to new capital. Apparently there was a very marked lack of confidence in the management of the bank on the part of the farmers. The great powers vested in the directors and managers proved to be the weak spot in the whole organization and the cause of the failure of the farming element to support the institution at the critical time. These same farmers at the very end decided it would be no more expen sive to form a new bank than it would to rebuild the old one; and in view of the anti-co-operative features of the old bank a new one would be better anyway. Already there is a movement afoot to establish a new bank, and several local groups of farmers have purchased branches of the old institution for the purpose of organizing local banking so cieties. Meanwhile a large part of the work formerly done by the Danish Co operative Bank will be undertaken by the Workers' Co-operative Bank, whose membership is chiefly industrial workers and their societies, whereas the Danish Co-operative Bank was essentially an agricultural bank. NOVA SCOTIA MINERS FLOCK TO THE CO-OPERATIVE The miners of Nova Scotia have been through a devastating strike for many months in the early part of 1925. Now that the strike is over, their British Canadian Co-operative Society shows an increase of 372 in its membership. This society is the largest on the American continent, and rendered val iant service to the strikers during their time of need. The sales for the first three months since the strike ended have been $332,938, on which the di rectors have declared a patronage rebate of 7 per cent. All of which goes to show that the right kind of a Co-operative society flourishes on adversity. SWEDEN HAS A CO-OP POSTMASTER GENERAL Mr. Anders Oerne, secretary of the Co-operative Union of Sweden, has recently been appointed postmaster gen eral of Sweden for a period of six years. Long active in various political offices as well as a leader in the labor and co operative movements of his country, Mr. Oerne is now recognized in all coun tries as one of the best known authorities on labor and co-operative economics in any of the European countries. He is also a member of the Executive and Central Committees of the International Co-operative Alliance. THE MOVEMENT IN MEXICO Last year when the President of the Republic of Mexico was in Europe, he spent much of his time studying Co operative societies, especially in Ger many and France. He has had pub lished by the Mexican Government several works on the subject. The Mexican Federation of Labor is giving more attention to Co-operation than ever before. _______ There are now 779 Co-operative socie ties in England which set 48 hours or less as the maximum working week for its employees. That means more than half of the Co-operatives of the island. Can private business boast as good a record ? 52 CO-OPERATION CO-OPERATION 53 News and Comment THE PROSPERITY OF A FARMER'S CO-OP WHOLESALE The Farmers Union State Exchange, co-operative wholesale for the stores of Nebraska, jumped its total business in 1925 to a total of $1,521,311, an increase of more than 12^ per cent over that of the year previous. The net profit of $36,633 is an increase of more than 100 per cent over that of 1924. One of the problems of these farmers is the opposition of the salt combine, which now has become so hostile to the Co-oper ative that it refuses to allow them a jobber's commission on salt sales, and tries by means of special concessions to the local stores to win the salt business •away from the Exchange. That is the reason for a recent meeting of co-oper ators at Kansas City where exchanges and farmers' buying agencies from seven of the central agricultural states dis cussed combined action to procure direct connection with the sources of salt supply. The Exchange is not only selling to local co-operative stores and to groups of farmers throughout the state; it is also operating a few stores directly under the control of the Exchange itself. The headquarters store did a business last year of $99,000. In contrast with the shaky financial condition of the business four years ago, when notes payable totalled $216,000, the current liabilities are now reduced to a figure which is only one-eighth of the current assets. There are few co operatives in the country that can show as sound a financial condition as that. CO-OPERATIVE PHONES VERSUS THE BELL SYSTEM Some of the farmers out in Nebraska are losing patience with the continual rise in the costs of telephone service. The following resolution, adopted by the Farmers' Union of Merrick County at its quarterly meeting in September, is symptomatic of the sentiment of thou sands of farmers: "Whereas, The Bell Telephone Com pany has received permision from the courts to raise the rates, and has done so when the same seemed to patrons of said telephone company to be as high as should reasonably be asked; therefore, be it "Eesolved, That we, the members of the Farmers' Union of Merrick County, Nebraska, at this our quarterly meeting held September 14, 1925, do instruct our legislative committeemen from Merrick County to advocate a rural county tele phone system, and bring the same before the state convention proper, to be dis cussed in the open. '' Frank N. King, J. G. Engel, "John Wegert, EmilBecker, Committee." Meanwhile, there are scores of Co operative telephone lines already being operated in other parts of Nebraska and adjoining states. The Bell interests do not have everything their own way in the rural districts as they have in the cities. RESOLUTION ON FASCIST PERSECUTION The following resolution has been re ceived by the office of The Co-operative League from various societies: "Whereas, the present Fascist Gov ernment of Italy has destroyed the co operative societies of Italy and forcibly occupied the offices of the Lega Nazion- ale: "We, the members of the Co-operative Association, of , , in our annual membership meeting assembled, join in the protest of the International Co-operative Alliance, and extend our sympathies to the perse cuted Italian co-operators. "Further, we heartily endorse the proposal made by the Red International Labor Union that the International Co operative Alliance take the initiative to call a conference of the Amsterdam International of Trade Unions, the Red International Labor Union and the In ternational Co-operative Alliance to formulate measures to fight Fascism. Signed this day of , 1926. Chairman. Secretary." Copies of this resolution, as passed by their membership meetings, have been received from the following co-opera tives: Co-operative Trading Company, Quincy, Mass.; International Work People's Co-operative Association, Gil bert, Minn; Marengo Farmers' Co operative Merc. Association, Marengo, Wis.; Brookston Farmers Co-operative Trading Co., Brookston, Minn.; Finnish Co-operative Hotel and Boarding House, Cleveland, Ohio; People's Co-operative Society, Superior, Wis.; Cloquet Co operative Society, Cloquet, Minn.; Northern Farmers' Co-operative Society, Angora, Minn.; Elanto Company, Nashwauk, Minn.; National Co-opera tive Co., Ironwood, Mich.; Rock Co operative Co., Rock, Mich.; New York Mills Co-operative Co., New York Mills, Minn.; Consumers' Co-operative Co., Hibbing, Minn. CONFISCATORY INCOME TAX The Co-operative League has heard of a great number of cases of income tax levied against co-operatives on a misunderstanding of what a co-operative is legally liable for. In fact, the Ac counting Bureau of the League is now fighting a case at Washington which in volves a tax of $6,000 that should never have been assessed. But the ruling of the Internal Rev enue Department to the effect that the Nebraska Farmers' Union Exchange owes taxes and interest for 1917 and 1918 to the amount of $53,000, is a new one. Most co-operatives, even some of our wholesales, do not have that much capital. At this writing we do not know what patronage rebates were paid members of the Exchange during those two years, so it is impossible to even guess at the amount for which the co-operators are really liable. TAXES SAVED FOR MINERS' CO-OP. The State of Pennsylvania has been taxing the little miners' co-operative at Cherry Valley (West of Pittsburg) on a capital stock valuation of $12,500. The Directors let this go for a good while and did not make any serious objection, for they had no local legal advice that could help them without charging them extortionate fees. Fin ally they put the matter in the hands of The League. After repeated exchange of letters between The League office, the Assessors of Washington county, Pa., and the State House at Harrisburg, the valua tion of the capital stock of this little society was reduced by the Auditor General's office from $12,500 to $9,000. Which means a reduction in the tax for 1924 and 1925. UNFRIENDLY BANKERS In the State of Washington the State Bankers Association is afraid that the co-operative banks may encroach upon the privileges of its members. A bill, drawn by the secretary of the association, would prohibit savings and loan societies from paying more than 5 per cent. The bankers also demand that only members can do business with these societies and that depositors be not permitted to draw out money that has once been invested in the societies. These are restrictive measures intended to hamper the growth of co-operative banks. Five years ago these societies in Washington had $20,000,000 assets. Their present assets are around $75,000,000. A GENUINE WORKERS' (CO-OPERA TIVE) BANK One of the great misfortunes of the American labor banking movement is the fact that all the labor banks are in corporated as capitalist banks. The Headgear Workers' Credit Union, owned and controlled by the 850 members of the Cloth, Hat, Cap and Millinery Work ers' Union, a credit organization 100 per cent co-operative and democratic in structure, presents a vivid contrast to these labor banks. During their eighteen months of existence they have raised a capital of $125,000 and have proved to be the fastest growing credit union in New York State. 1 54 CO-OPERATION NEW ERA LIFE INSURANCE IS GOOD INSURANCE At the close of business December 31, 1925, the New Era Association, of Michigan, counted a benefit membership of 33,902 men and women who are pro tected by insurance to the total of $40,256,000. Since its organization more than twenty-five years ago, $4,614,- 305 has been paid out for death claims. This association is as purely co-opera tive in form as any that has yet come to the attention of The League. An average of 35 or 40 death claims are ordered paid each month now, and the membership continues to grow steadily. Expenses of management run from $20,000 to $25,000 per month, which is an indication of the size of the business. Total assets are $235,785. The officials of New Era are in close touch with the Northern States Co-op erative League; in fact, they have been considering the matter of affiliating with either the National League or the North ern States League for nearly two years. FARMERS' BUYING FORCES GET TOGETHER Recent reports from the Farmers' Union of Nebraska tell of a conference in Kansas City on January 29, at which representatives from the farmers' ex changes and wholesales from Missouri, Oklahoma, Kansas, Iowa and Nebraska were present. A purchasing committee of one from each state was elected. Mill representatives were present to confer with these co-operators and show what savings might be effected by combined purchase. One agreement was reached whereby fifty cents per ton brokerage is saved on one commodity, and tentative agreements were reached on others. The joint purchasing committee is composed of the following members: H. A. Cowden, Missouri Farmers' Asso ciation; L. E. DeVoss, Kansas Farmers^ Union Jobbing Association; Z. H. Law- ter, Oklahoma Farmers' Union; Wm. G. Ashline, Iowa Farmers' Union Serv ice Association; C. McCarthy, Nebraska Farmers' Union State Exchange. Course of Lectures at the Co-operative Educational Association CO-OPERATION—ITS HISTORY, PHILOSOPHY AND PRACTICE By MEMBERS OF THE STAFF OF THE CO-OPERATIVE LEAGUE OF THE U. S. A. Sundays—6:30 P.M.—At 400 Stone Avenue, Brooklyn, N. Y. February 14—Economic Conditions of Early 19th Century in England; Rochdale and the Pioneers. British Labor and Co-operation During Eighty Years. —J. P. War'basse. February 21—Co-operation Goes to the Continent. The Belgian Plan. The Unique Contributions of France, Switzerland, Italy, Germany and Austria. —Cedric Long. February 28—The Movement in Den mark, Finland, the Scandinavian Countries, Poland and Russia. Co operation in Its Relation to Farm ers. How Organized Producers Become Organized Consumers. —Cedric Long. March 7—The Rise and Development of Co-operative Banking Throughout Europe and Its Migration Into Asia and America. —Edward A. Norman. March 14—Co-operative Health, Hous ing, Experiments and Accomplish ments at Home and Abroad. Social, Educational and Recreational Pro grams. Co-operation for Women, Children and the Home. —Agnes D. War'basse. March 21—The Beginnings of the Move ment in America, Its Early Dis eases and Its Development Through Infancy and Adolescence. The Enemies and Barriers that Hinder Progress. —Cedric Long. CO-OPERATION 55 March 28—The Present Status of Co operation in the United States Among the Farmers, Miners, Rail road Men, Textile Workers, Middle Class Groups. The Foreign Lan guage Groups. —Cedric Long. April 4—The Many and Various Types of Co-operative Business. Distribu tion of (1) Commodities, (2) Serv ice, (3) Ideas. The Wholesales, Educational Leagues, Technical Service and Advice.—Cedric Long. April 11—The Relation of Co-operation to Politics and the State. Can the Dictator Conquer Co-operation ? Co-operation versus the State. —Cedric Long. April 18—The Philosophy and Ethics of Co-operation. An Agency for Inter national and Industrial Peace. Co-operation as an End in Social Reorganization. P. War'basse. District Leagues ANNUAL MEETING OF THE FRANK LIN CREAMERY ASSOCIATION The annual meeting of the largest con sumers' co-operative in the United States, situated at Minneapolis, went smoothly and well, in spite of some of the prophecies to the effect that a society which has grown as rapidly as this one will inevitably run into factionalism and other disrupting affairs. The entire board of directors was re- elected. The treasurer reports total business for the year as being $3,533,175, an increase of $231,699 over that of the year before. The net surplus for the twelve months was $102,033. The members voted at the meeting to pay 7 per cent interest on capital stock, and to set aside $2,000 for the work of the Educational Committee. Seven out of the eleven members of the Educational Committee were re-elected. The meet ing also voted unanimously to extend an invitation to the Co-operative League to hold its next Congress at Minneapolis. More detailed reports of the year's work at Franklin will appear in a later number of CO-OPERATION. THE BEST YEAR AT CENTRAL EXCHANGE The Co-operative Central Exchange, of Wisconsin, did a business of $835,532 in 1925, on which the net gain was $8,869. This is the best record these co-operative wholesalers have ever made; and they hope to raise the figures in 1926 to an even $1,000,000 of sales. The following is the record since organization: MEM- CUS- YBAE 1917 1918 1919 1920 1921 1922 1923 1924 1925 BERS 15 25 40 48 56 56 56 60 65 TOMERS 15 i 50 83 100 103 112 108 99 93 SALES $ 25,573 132,423 313,664 409,591 312,346 337,567 504,177 613,214 835.532 GAINS $ 268 2,063 7,330 6,798 3,399 1,183 5,181 5,973 8,869 CAP. STOCK $ 480 4,020 6,940 10,890 15,389 16,292 17,993 21,501 27,279 One of the interesting features of this table is the indication that the trade is increasingly becoming concentrated with the member stores, and the scattered sales to nonmembers is being cut down each year. This shows a healthy appre ciation of service to member-societies as the first job of the co-op wholesale. Total assets at the close of 1925 are $176,243, of which $122,793 are current. Current liabilities are $85,691. The surplus reserve is $8,869. FINANCIAL STATEMENT OF EASTERN STATES CO-OPERATIVE LEAGUE DECEMBER 31, 1925 RECEIPTS Initiation fees paid at Spring field Conference, Feb., 1925. $70.00 Proportion of dues paid into The Co-operative League... 258.42 Total Receipts .......... $328.42 DISBURSEMENTS None. 56 CO-OPERATION CO-OPERATION 57 From The League Office A SPEAKER AVAILABLE FROM THE LEAGUE Early in the summer Mabel W. Cheel, district adviser on the staff of the League, will be traveling between the Pacific Coast and New York, and will visit many of the co-operatives along the way. She will probably go from Central California up to Washington, and then travel east across the North Central States to Chicago, Indiana, Ohio, and through either Pennsylvania or New York. Societies desiring to have Mrs. Cheel stop and meet with directors or to attend a membership meeting and speak on Co-operation should communicate with The League at the earliest possible moment, so that the trip can be planned in advance. Mrs. Cheel will leave California about the middle of May and will be in the Chicago territory about the 1st of June. The cost of having her stop off for such a meeting will be only nominal. THE ORGANIZATION OF A COST ACCOUNTING SYSTEM FOR THE LEAGUE One of the first tasks of the League auditor has been to plan an accounting system, the chief object of which is to show the expense of running the League in relation to the membership dues re ceived at the present and to those ulti mately needed to make the League an organization wholly supported by its members. Two main classifications of League activities are used for this pur pose : the Self-Supporting Activities and the General League Activities. It is hoped that the self-supporting activities, in time, will pay for them selves. The income thereof is derived chiefly from sales and service charges. The purchase of books, pamphlets and other articles that are sold are deducted from this income. A time distribution system has been installed, by means of which every worker at the League office keeps a record of that part of his time which he devotes to the various self- supporting activities. The share of the League expenses that pertain to the self- supporting activities is charged to this account. There is still a large deficit here, but it is hoped that, by a careful accounting system, a way to eliminate this loss will be found. First and most important of the re ceipts of the general League activities are the membership dues; then come donations made to meet the present deficit. Eent, one of the expenses which should ultimately be met by member ship dues, is now listed as a donation. This amount has been arbitrarily set at $100 a month and has been charged pro portionately both to the self-supporting activities and to the general activities. The time of volunteers has been recorded and listed as a donation so that it can be charged to the activity served. The rent collected from apartments let in the League house about covers the house expenses and is a part of this report only in that it goes through the books of the League. Under expenses of the general League activities come salaries and the overhead expense which take care of educational work and of routine matters. A full report, showing the cost of maintaining the League office will be published annually. This quarterly report serves to introduce the new ac counting system and to make clear any reference to running expense that may appear from time to time in CO-OPERA TION. WERNEB E. EEGLI, Accountant. JjCO (M g.Sco (M 'S'Pcs &'£ ^JH d-S1-1 jr1-^ ^ w o in in ?D -ctl O O CO O O in t-o o co ?o co t~ t- m «> O CO C5 CO •cti in • CXJ CO ' CO o in CSrfl s&§ be ^ P " K _ g -c P< o l o» (M O^ CO CO CO O i> in S o EH CO CO l> to ° O O i-l O C5 O «o co o CO CO B

QJ &3 o EH O •* O O C5 O in co o f the banks associated with them. But insurance for the service of the people can be carried on. The European coun tries have it developed to a high degree -of efficiency. In this country we have a good number of co-operative insurance «ompanies. One of these is the Farmers' Union Mutual Life Insurance Company, of Iowa. This company was not organized ex clusively for the purpose of providing life insurance but for the purpose also of acting as a financial institution to loan money for the assistance of agri culture. Last year the assets of the com pany more than doubled during the year. So also did the surplus. In June, 1924, the company had $3,153,750 insurance in force; a year later it had $4,551,750; to-day it has over $6,000,000. It not only pays death claims promptly but it pays interest on capital invested by its mem bers. It pays higher interest to its members for money and furnishes in surance at a lower rate than profit- making companies. But over and above these it lends money to the farmers on first farm mortgages at reasonable rates. In June, 1924, it had $44,000 loaned on farm mortgages; in June, 1925, it had $110,650; and to-day it has over $200,000. This money is loaned to farm ers at 5 per cent interest. It is loaned without charges for commissions and other extra expenses, and means a great saving to farmers who have been paying from 8 to 15 per cent interest for similar loans from profit-making insurance com panies and banks. The Equitable Life Assurance Society of the United States had at one time $100,000 of capital stock remaining un sold. G. J. Gould and E. H. Harriman offered $7,000,000 for this $100,000 of stock in order to get control of the com pany to use its assets to finance their railroads. E. E. Kinsinger, the secretary of the Farmers' Union Insurance Com pany says: "If Gould and Harriman could afford to pay $7,000,000 for an in surance company to finance their rail road operations, what can the farmers of Iowa and other agricultural states afford to pay for a company pledged to the financial support of agriculture?" AN INTERNATIONAL CO-OPERATIVE SCHOOL Co-operators who are visiting Europe this summer will be interested to know about the Sixth International Co-opera tive Summer School, to be held at Man chester, England for two weeks from July 17th to 31st. The five previous schools of this char acter have been conducted and financed by the British Co-operative Union. This year, for the first time, the International Co-operative Alliance has taken charge of the schools and in the future they will be under the direction of the Interna tional. Two series of lectures will be given by leaders of the British Co-operative Movement, on "Co-operative Institutions in Britain," and "Co-operative Prob lems." Special lectures will be given by H. J. May, Secretary of the Interna tional Co-operative Alliance; M. Ernest Poisson, the French leader, and others. Each afternoon will be devoted to special excursions to such places as Eochdale, the London Society, the Wholesale and Productive Works, societies in the Lake Country, etc., etc. Both Wednesdays are set aside for all-day excursions. An effort will be made to have all the stu dents from countries outside England housed in the Hotel of the Co-operative College, so that they may get acquainted. Already one co-operator in New York has indicated his intention to attend these sessions. The charge for the lec- CO-OPERATION 93 tures, classes, excursions, accommoda tions and meals come to four pounds per week per student. Application for admission should be made before the 1st of June. POLITICAL NEUTRALITY IN THE CO-OPERATIVE MOVEMENT At the Conference of Eastern States Co-operative Societies in Worcester, Mass., on the 18th of April, consider able attention was given to the political factionalism which has agitated many of the co-operative communities during the past few years. The societies which have suffered most are some of the strong Finnish and Jewish co-opera tives. A resolution was finally pre sented to the conference and adopted unanimously. The resolution is as follows: Whereas, it appears from the reports of many co-operative societies present at this conference that the progress of the co-operative movement is impaired in certain societies be cause of the division of the members into hostile political groups; and Whereas, it appears that there is a lack of true co-operative educational work; be it therefore Eesolved, that this Eastern States Confer ence, assembled in Worcester, Mass., April 18, 1926, expresses its regret that political differ ences are introduced into co-operative Societies to become a cause of discord among co-opera tors; and be it further Eesolved, that strong and intensive co-opera tive educational work be started among the members and consumers, with specific reference to the young people of the co-operative societies throughout this district by arranging lectures, speeches and courses for training the employees and managers, as well as directors of the movement; by publishing leaflets, articles in various papers, and by any other means pos sible. And -be it further Resolved, that this Conference of Co-opera tive Societies of the Eastern States recognizes the Co-operative Movement as a movement which aims to embrace all consumers, and must therefore be neutral in politics and all other matters external to Co-operation. CO-OPERATIVE ELECTRIC LIGHT AND POWER The Pennsylvania Department of Agriculture has published a bulletin en titled "How Farmers Can Secure Elec tric Service by Co-operative Effort." One of the interesting stories it contains is that of the Pioneer Electric Light Company, of Lancaster County, Pa. This company was organized in 1920 by a group of farmers, and now serves 117 consumers' meters, of which six are for power and the others for lighting and small motors. There are 86 stock holders, more than 80 of whom are con sumers. The largest stockholder owns ten shares. No member may vote more than ten shares at meeting. Twenty- eight miles of 2,300 volt, three wire line are being used. It is the farmers' experience that it costs $1,200 per mile to build main line extensions, together with transformers, meters and services under 100 feet in length. The poles are locally grown chestnut 30 feet high. The farmers have given the right of way for the lines without charge. This company has paid no dividends during the five years of operation, and has laid aside $3,000 of surplus. The energy is being purchased from the plant of the Pennsylvania Water and Power Company at Holtwood, Pa. SOO PASSES THE HALF-MILLION MARK The Soo Co-operative Mercantile As sociation of Sault Ste. Marie, Michigan, in 1924 did a business just short of a half a million by $470. In 1925 the sales were $551,367, definitely setting this society pretty near the top of our store societies in the United States as far as volume of business goes. The capital stock increased during the year from $34,470 to $40,090. The net gain for the year was $30,542. From this sum will be paid interest on capital, rebates to purchasers and employees, and in come taxes. The thirteenth annual meeting was held on February 10th, and the chief speaker was Mr. E. E. Branch, secretary of the New Era Life Insurance Associa tion of Grand Eapids. The members voted to increase the authorized capitali zation of the association from $50,000 to $100,000. There are now seven stores and a bakery operated by these co-operators. The bakery is the largest and most up- to-date in that part of the state. CO-OPERATION DO OUR FARMER READERS AGREE WITH THIS? In the course of a recent summary of the development of the co-operative mar keting movement in the United States, the Department of Research and Educa tion of the Federal Council of Churches comes to the following explanation for the more rapid expansion of the co operative marketing movement than of the co-operative consumers' movement: "A further fact that needs to be un derstood in appraising co-operative mar keting in the United States is the wide divergence between the philosophy held by a large majority of the leaders of the farmers' associations and that which characterized the historic movement of consumers' co-operation. The farmers propose no such a widespread reorgan ization of capitalism as is contemplated in the elaborate scheme of consumers' eo-operation. The co-operative market ing movement has offered a method of dealing with certain distribution prob lems; it has not proposed an extended plan for the social control of wealth. The leaders of the marketing movement have thus won a degree of approval among conservative financiers which has not been accorded the protagonists of consumers' co-operation in this eountry." AUDITING FOR THE FARMERS In 1918 the Kansas Farmers' Union Auditing Association was incorporated and started doing audit work for the farmers' marketing associations and in stalling and standardizing record sys tems. Membership is limited to Farm ers' Union Organizations, but audits are conducted for other organizations, usu ally at an increased price. Nearly 500 audits have been made in 1925. All auditors are experienced in this kind of work and are under bond. Lately a new line of service has been given societies in the form of bonding managers and officers of local Co-opera tives. In the near future the association expects to open an employment agency. ANOTHER CO-OP FAKIR MEETS HIS JUST REWARD For many years there has been a finance company with headquarters in Pittsburg, Pa., which sailed under the name "Co-operative League of Amer ica." The prime mover in the business was one Hawkins, formerly the head of the Hawkins Mortgage Company of Indiana, another concern of the same kind. The Pittsburg company had branch offices in New York and many other cities and did a very large busi ness. The Co-operative League of the U. S. A. made repeated efforts to get them to discontinue the use of the name, but to no avail. As a result, many people confused the two organizations, and genuine Co-operative League in New York was often visited by men and women who wanted to borrow money. RUSSIAN CO-OPERATORS STUDY AMERICAN BAKERIES Three delegates from the Leningrad Co-operative Societies of Russia have been in the United States making a spe cial study of the most modern automatic methods of baking bread. Their names are given as L. Rubinstein, P. J. Vevers, and S. Monass. Eighteen of the Leningrad Co-opera tive Societies manufacture in ten plants about 600 tons of bread per day, or 70 per cent of all the bread consumed in the city. This is the 100 per cent rye bread, known as "Russian black bread." As the consumption of bread in Russia constitutes a larger proportion of the food eaten than in America, there are large forces of employees at work in the Russian bakeries. The installation of the most modern machinery will free most of these peo ple for other kinds of labor. WHEN WE COUNT UP ALL KINDS OF CO-OPS The United States Department of Agriculture now has listed 10,803 co operative societies in the country. It is estimated that there are probably 12,000 societies in all. The figures do not include co-operative banks, credit associations, nor insurance companies. Fifty-four of these are marketing federations with local units; 49 are sales agencies operating in central markets; 35 are bargaining associations; 98 are large-scale organizations of the central- CO-OPERATION 95 ized type. One-third of the total num ber listed are primarily interested in marketing grain, and one-fifth of them in handling dairy products. Over 70 per cent of all these associa tions are in the twelve North Central States; while about 6 per cent are in the three Pacific States and less than 3 per cent in New England. Minnesota re ports more than any other one state, with 1,383. Iowa has 1094, Wisconsin 1,092, Illinois 822. ONE OF THE OUTSTANDING CREDIT UNIONS OF MASSACHUSETTS The Progressive Workmen's Credit Union of Maiden, Mass., renders its members an excellent Fourteenth An nual Report at the close of 1925. Share capital has now passed the quarter- million mark, reaching $226,773. De posits are just short of $41,000. The guarantee fund is nearly $20,000. Total resources are $308,274. During 1925 the income from interest earnings were $30,346. As expenses were low, there is a substantial sum left for an interest payment of 6 per cent on deposits and 8 per cent on shares. GET-RICH-ftUICK CO-OPERATORS The more cautious farmers of the coun try have long watched with considerable misgivings the splurging of some of the huge banker-befriended associations of growers of tobacco and other commodi ties, especially when these concerns are promoted by high salaried lawyers and stock salesmen of the flashy type. A recent investigation of the Tri-State Tobacco Growers Co-operative Associa tion of Virginia, North Carolina and South Carolina confirms some of the worst misgivings. Twenty-seven officials were found to be deriving large profits from the sale of co-operative products to concerns in which they had an interest. The general manager and the head of the warehouse department of the co-oper ative, already receiving $30,000 and $7,000 respectively for their services, made an extra profit in one year of $82,000 which they split between them. Similar profits were made other years. In fact, nearly half of the crop for three successive years was dried in plants in which these and other officials had a financial interest. These farmers better go slow and watch their step. BIG AND LITTLE CORPORATIONS There are more than 9,360 corpora tions that deal with agricultural products in the United States. Just one of these 9,000 made $38,735,391 profits in 1923. The other 9,359 had only $92,201,000 all together. There are about 400,000 corpora tions of all kinds. One thousand of these took almost exactly four billions in profits in that year. Which shows that whether your stocks and bonds bring you much in come depends entirely on the kind of corporation that issued them. There are big corporations and little ones, big profits and small profits. District Leagues THE EXCELLENT EDUCATIONAL WORK AT MINNEAPOLIS The reports of the Educational Com mittee of the Franklin Creamery Associ ation and the Educational Department of the same association, as presented to the annual meeting in January, makes an excellent impression upon the reader of these documents as they appear in eight closely typewritten pages. The recommendations of the Educational Director regarding the work that might be undertaken by the Educational Committee in 1926 is equally interesting. We can here quote only the most significant items from the three documents. 96 CO-OPERATION Educational Committee. "In February, 1925, classes in public speaking were arranged under the auspices of the Educational Committee . . . which were held for ten consecu tive weeks with an average attendance of about twenty. . . . "In March, Mr. Smaltz, Friends Service Committee, gave a travelogue on Russia, illustrated with slides. . . . "A number of books on co-operation were ordered for the Franklin library, making the library fairly complete so far as standard books on co-operation are concerned. . . . "Between April 20th and June 12th, a series of 15 house or neighborhood meetings were arranged in different parts of the city, and the campaign wound up with a general program meet ing in the Franklin auditorium. The average attendance at house meetings was 20. The meeting in the auditorium drew about 150. Several of the Frank lin employees appeared as speakers at these house meetings. . . . "At a meeting in May a motion was carried to purchase a moving picture machine to be used at the program meetings of the committee. This machine has been of good service. . . . "International Co-operative Day was celebrated in the Franklin auditorium on July 2d under the joint auspices of the Franklin Educational Committee and the Northern States Co-operative League. . . . "In July the Committee voted five scholarships of $50 each to members or employees who would attend the Training School. Four of these were granted. . . . "The Committee had full charge of the stockholders' picnic at Riverside Park in August. . . . "In September the Committee pur chased the statuette 'International Co operation' to present to the Franklin Association, through its Board. "In October and November plans were made by joint action of the Com mittee and a similar committee from the Minneapolis Central Labor Union for educational evening courses to be held during the winter. Twenty-three stu dents were enrolled and three instructors have been meeting with them regu larly. . . . "At the close of the Training School November 28th, a banquet was provided for the students, instructors and friends of the school. . . . "During the autumn and winter large propaganda meetings have been held in various parts of the city, with an aver age attendance of 200. The program has usually consisted of two short speeches on the Franklin Creamery and on Co operation, two or three moving picture films, and one or two musical numbers. Ice cream has been served free. "A class in chemistry has been or ganized, and attendance is from 12 to 15. ... "During the winter the Educational Committee has met two or three times with the Board of Directors of the Franklin Creamery. . . . "Durnig the year Mr. Edberg, of the Committee, has disposed of 98 copies of CO-OPEEATION, selling them at 10 cents apiece at meetings." Other items in the report concern finances, personnel of the committee, other minor meetings and activities put through during the year, etc. Educational Department. "The work has been divided into four main kinds: " (a) Conducting classes, either di rectly or through correspondence, for the benefit of the employees and stock holders of the creamery. " (b) Contributing to the Minneapolis Co-operator and writing articles on Co operation. " (c) Working together with the Edu cational Committee, in an advisory ca pacity, and at times managing its cam paigns and other activities. " (d) Miscellaneous minor activities, such as correspondence, acting as guide, taking visitors through the creamery, etc. "A correspondence course in Co-oper ation has been worked out. This course comprises 40 single-spaced mimeo graphed sheets, containing 7 lessons, 70 questions, and correct answers to these. . . . "Contributions to the Minneapolis CO-OPERATION 9? Co-operator to the extent that space has permitted. Also edited the International Co-operative News section in the Minne apolis Co-operator." Many of the other activities of the Educational Director have been carried on under the time and name of the Educational Committee or of the Secre tary of the Northern States Co-operative League (Mr. Alanne is both Educational Director of the Creamery Association and General Secretary for the N. S. League). Mr. Alanne makes some very pertinent recommendations regarding the position of Educational Director. "(a) That regardless of who may oc cupy the position, or how much the ex pense of the Department may reduce the net profit of the Creamery business, the work should be carried on and gradually enlarged. " (b) That the evening classes be con tinued and strengthened. "(c) That a study be made of the best methods for making the administra tion of the Association truly democratic, without losing anything of the business efficiency." Recommendations to the Educational Committee1. Mr. Alanne makes 15 recommenda tions to the Educational Committee of the Franklin Creamery. The most sig nificant of these are: "1. That the Educational Committee work in closer conjunction with the Ad vertising Department of the Cream ery. . . . "3. That program meetings be con tinued and that the distribution of co operative literature be made a rule of the meetings. The Minneapolis Co- operator as well as bundle orders of CO-OPERATION and pamphlets published by The Co-operative League to be used. "6. That the committee continue its efforts to establish regular library hours and to get the Franklin employees and stockholders to use it. "7. That the committee consider it one of its important duties to help the Northern States Co-operative League to get individual members and subscrip tions for CO-OPERATION. "8. That elaborate preparations be- made this year to celebrate the Interna-, tional Co-operators' Day on July 4th,, and that the first week in July be made a special propaganda and campaign week. "10. That the members of the com mittee seriously undertake during the year to inform themselves on the Co operative Movement, its principles and methods; and that toward this end, the committee either devote half of the time of each meeting to co-operative study and discussions, or arrange special study meetings every other week for this purpose. "11. That the present committee vote, to order the magazine CO-OPERATION for, all members of last year's committee who attended at least 15 meetings of- the committee during the year, and pay for their individual memberships in the. Northern States Co-operative League." CONFERENCE OF EASTERN STATES.. SOCIETIES On Sunday, April 18th, at Worcester, Mass., the Eastern States Co-operative. League held its Second Annual Con vention; and on Monday, the 19th, a Managers' Conference was conducted under the same auspices. The E. S. League Convention Twenty-seven delegates were present- from the following societies: United Co-operative Society, Worcester, Mass.; United Co-operative Society, Maynard," Mass.; United Co-operative Society, Fitchburg, Mass.; United Co-operative Society, Norwood, Mass.; United Co operative Society, Gardner, Mass.; Co operative Bakery of Brownsville, Brooklyn, N. Y.; Finnish Co-op Trad ing Ass'n, Brooklyn, N. Y.; Consumers'^ Co-operative Services, New York City; Utica Co-operative Society, Utica, N. Y.; Workmen's Circle Co-op Bakery, Worcester, Mass.; Jewish Workers'- Co-op Bakery, Springfield, Mass.; Hebrew Co-op Bakery, Brockton, Mass.; Hudson Guild Co-op Store, New York City; Consumers' Co-op Housing Ass'n, New York City. 98 CO-OPERATION The business enterprises represented by these delegates included nine grocery or meat stores, nine bakeries, five restaurant departments, two dry goods departments, three dairy departments, one laundry, one shoe store, one billiard parlor, one coal yard, one furniture de partment, one co-operative house. The treasurer reported more than $1,250 in the treasury and no bills out standing. Nine of the societies have already paid dues for 1926. A long discussion took place upon the subject of political factionalism within the co-operatives. Leaders of both Socialist and Communist groups among the Finns participated in the discussion, as well as some of the active members of these political parties. There was a general agreement that the co-opera tive movement could best be served by maintaining absolute neutrality within the co-operatives, and the resolution on the subject, presented by W. Marttila, was by common consent referred to the Eesolutions Committee and reported in the form presented in another article in this number of CO-OPEEATION. A chicken dinner was served the dele gates at noon and in the afternoon busi ness was resumed. The report of A. Wirkkula on joint buying aroused considerable discussion, and a special committee was appointed to consider the advisability of establishing a job bing association with a manager in charge. Three hundred dollars was appropriated for the work of this com mittee. Mr. Eegli presented the situ- tion as regards auditing and accounting among the Eastern societies, and Mr. Woodcock outlined the scheme for com pilation of figures of societies in the East and publication of a directory. The directors were also authorized to proceed with the publication of an Eastern States League paper. The following directors were elected: Otto Endres, Utica; K. E. Grandahl, Fitchburg; Cedric Long, New York; W. Niemela, Maynard; M. Bubinson, Brooklyn; A. Wirkkula, Brooklyn; L. E. Woodcock, New York. At a meeting of these directors later, Mr. Endres was made president, Mr. Woodcock, secretary, and Mr. Niemela, treasurer. The convention authorized the finan cing of one delegate to the National Congress at Minneapolis in November. Other details were referred to the direc tors for action. Meeting of Board of Directors Most important actions taken by the board were: 1. Authorization of publication of an "Eastern States Co-operator" monthly, using one page of the League associate magazine, at least 100 copies to be sent every member society. 2. Appointment of a committee to take complete charge of gathering in formation and publishing an Eastern States Directory of Co-operative Socie ties. 3. Finnish societies at Maynard and Fitchburg authorized to roast coffee for member societies of the League until the coffee business becomes strong enough to warrant the establishing of a special plant. Managers' Conference The chief discussion on Monday among the thirteen managers present centered about joint purchase of flour and joint roasting of coffee. Mr. Niem ela presented figures which indicated that a saving to the societies of five cents per pound might be effected by joint coffee roasting. Mr. Niemela and Mr. Grandahl volunteered to undertake temporarily the roasting of coffee up to 3,000 pounds per week for the com mittee at bare overhead expense, in the roasting plants at Maynard and Fitch burg. Mr. Eegli presented the subject of Uniform Record and Accounts in Co operative Business and a valuable dis cussion ensued. A still more lengthy discussion centered about the subject "Bakery Sales to Private Grocers—Is This Practice Co-operative?" Almost every individual present, including several of the visitors, took an active part in the debate. The managers present represented societies having a combined member ship of 8,800 shareholders and a com bined annual turnover of $2,431,000. CO-OPERATION 99 The Correspondence File THIS MANAGER HAS HIS DOUBTS Editor, Co-operation: It is supposed that a co-operative has a manager who understands merchandising, who is supposed to make a success of the business, to treat them all absolutely on the square, and to do a legitimate business. Then he has a bunch of directors to contend with, who do not know any more about running a, business than a bunch of hungry wolves do. Then you say, 'The manager should take orders from the directors'. You find some directors who have some good common sense, but the most of them cannot suggest anything that would lead a manager to some good points. But they can open their mouths big in the hope of catching some stray fiy in the form of a coin. Do not think that I want to be smart, kicking on a high horse and such sort of play; but the case is just in plain words. Now, Gentlemen, I like to hear from you again. F. CO-OP MERCANTILE Co., —————————, Manager. Co-operative Central Exchange Wholesale Grocers and Jobbers, Bakers We supply goods to Co-operative Societies ONI-Y. We are owned and controlled by Co operative Societies. We are organized to enable Co-operative Societies to do collectively what they cannot do individually. Co-operative Central Exchange Offices, Warehouses and Plant: Winter Street and Ogden Ave., SUPERIOR, WIS. Co-operators* r.tcl. 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-cura tive Movement, owned by and con ducted under the auspices of The Co-operative Union of Canada. Published monthly 75c per annum Statement of the Ownership, Management, Cir culation, etc.. Required by the Act of Con gress of August 24, 1812. Of Co-operation, published monthly at New York, N. Y., for April 1, 1026. 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 sworn according to law, deposes and says that she is the business manager of Co-operation, and that the following is, to the best of her knowledge and belief, a true statement of the ownership, management, etc., of the aforesaid publication for the date shown in the above caption, re quired by the Act of August 24, 1912, embodied in section 411, Postal Laws and Regulations, printed on the reverse of this form, to wit: 1. That the names and addresses of the pub lisher, editor, managing editor, and business managers are: Publisher, The Co-operative League, 167 West 12th St., N. Y. C.; Editor J. P. Warbasse, 167 West 12th St., N. Y. C.; Man aging Editor, Cedric Long, 167 West 12th St., N. Y. C.; Business Manager, J. N. Perkins, 167 West 12th St., N. Y. C. 2. That the owner is: The Co-operative League, 167 West 12th St., N. Y. C. (1,000 organization members); J. P. Warbasse, President; Albert Sonnichsen, Vice-President; Cedric Long, Secre tary; A. Wirkkula, Treasurer. 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: None. J. N. PERKINS. Bus. Mgr. Sworn to and subscribed before me this 25th day of March. 1026. (Seal) SIDNEY BENJAMIN. (My commission expires March 30, 1926.) The Madras Monthly Bulletin of Co-operation ROYAPETTAH, MADRAS, INDIA The premier monthly on Co-operation in India. Special articles on Rural, Con sumers', Agricultural, Credit and Indus trial Co-operation; and Co-operation Abroad. Subscription Rs. 4/12 per annum. THE HOME CO-OPERATOR A four-page magazine for use in co-operative societies. Issued monthly, in bundles, $1 per hundred. Published by The Co-operative League 100 CO-OPERATION PUBLICATIONS —OF— THE CO-OPERATIVE LEAGUE HISTORICAL Per Copy Per 100 3. Story of Co-operation .............$ 7. British Co-operative Movement..... 39. Consumers' Co-operative Societies in N. Y. State (Published by Con sumers' League ................ 59. Co-operative Movement in Europe.. 64. Progress of Co-operation in United States. ..................... .10 .10 .10 .05 .05 TECHNICAL 8. 9. 27. 2. 14. 15. 29. 32. 43. 50. 51. 16. 46. 11. 12. 33. 13. 34. 30. 41. 42. 53. 55. 57. 60. 62. 63. .10 .10 .02 .10 .05 How to Start and Run a Rochdale Co-operative Society ............ .10 System of Store Records and Accounts . . . . . . ............. .50 A Model Constitution and By-Laws for a Co-operative Society....... Co-operative Education. Duties of Educational Committee Defined... How to Start a Co-operative Whole sale . . . . . . . ................. Why Co-operative Stores Fail...... Co-operative Store Management..... How to Start and Run a Women's Guild ....................... How to Organize a District Co-opera tive League ................... .10 Credit Union Primer (By Ham and Robinson). .................. .50 Application Blanks for Membership in a Co-op Society.............. Co-operative Housing ............. .10 A B C of Co-operative Housing.... .10 Model Lease for Co-operative Apart ment House ................... .10 MISCELLANEOUS Model Co-op State Law............ .10 Producers' Co-operative Industries.. .10 Control of Industry by the People through the Co-operative Movement Credit Union and Co-operative Store Credit Union and Co-operative Bank The Place of Co-operation Among Other Movements .............. Co-operative Movement (Yiddish).. " When the Whistle Blew " (Story, by Bruce Calvert) .............. .06 Social Aspects of Farmers' Co-opera tive Marketing (By Benson Y. Landis). . . . . . . .............. Co-op Homes for Europe's Homeless Real First Aid for the Farmers.... A Better World to Live In........ How a Consumers' Co-operative Dif fers from Ordinary Business.... The " Moral Equivalent " of Jazz... Buttons (League Emblem in 3 colors) 54 inch diameter........ Sign or Transparency of League Em blem. Green and gold, 8 in. diam.. ONE-PAGE LEAFLETS $6.00 6.00 4.00 4.00 .05 2.50 .10 .05 .05 .25 .02 .25 .10 .05 .05 .02 .02 .25 1.00 .65 1.75 1.25 3.00 15.00 (One Cent each; 50 Cents per 100; $2.50 per 500; $4.00 per 1,000.) (1) Principles and Aims of The Co-operative League; (18) D'o 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 I; (28) Do You Know About Co-operation in Europe?; (40) Have You a Committee on Education and Recreation?; (44) What Is the Co-operative Move ment?; (45) Schools and Stores; (47) A Man's Right to a Job; (48) Tips to Co-operators; (49) The Way Out; (58) Making Co-operation Succeed in America; (611 Co-operation Brings Disarmament. MONTHLY PUBLICATIONS CO-OPERATION—(In bundle lots, $7.50 per hun dred). Subscription, per year............. .$1.00 HOME CO-OPERATOR, 4 pages...... .$1.00 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 Move ment. They may be ordered through The League: Bergengren, Roy F.: Co-operative Banking, A Credit Union Book ..................... $3.00 Blanc, Elsie T.: Co-operative Movement in Russia . . . . . . . ....................... 2.50 Brightwill, L. R.: Animal "Co-op" Book—For Children . . . . . . . ..................... .15 2.75 Faber, Harald: Co-operation in Danish Agricul ture, 1918 ............................. 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 American edition and notes, 1922. Cloth, $2.00; paper bound ..................... .90 Hall, Prof. Fred: Handbook for Members of Co operative Committees ................... 2.00 Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, $2.00; paper bound . . . . . . . ....................... .60 Holyoake: Rochdale Pioneers ................ 1.00 Howe, Fred C.: Denmark, a Co-operative Com monwealth, 1921 ....................... 2.00 Jessness, O. B.: Co-operative Marketing of Farm Products ......................... 2.50 Madams, J. P.: The Story Retold............ .50 Nicholson, Isa: Our Story................... .25 Owen, Robert: Autobiography .............. .50 Potter, B.: Co-operative Movement in Great Britain .............................. 1.00 Redfern, Percy: The Story of the C. W. S..... 2.00 Redfern, Percy: The Consumers' Place in So ciety, 1920 ............................. 1.00 Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918 ........................ 1.00 Smith-Gordon and O'Brien: Co-operation in Denmark. . . . . . ..................... 1.00 Smith-Gordon and O'Brien: Co-operation in Many Lands, 1920 ..................... 1.50 Steen, H.: Co-operative Marketing............ 1.00 Stolinsky, A.: The Co-operative Movement. (In Yiddish) Warbasse, James P.: Co-operative Democracy.. 1.00 2.50 Webb, B. and S.: The Consumers' Co-operative Movement, 1921. Board, $2.00; cloth..... 5.00 Webb, Catherine: Industrial Co-operation, 1917. 1.50 Woolf, Leonard: Co-operation and the Future of Industry. . . . . . . ..................... 1.00 Woolf, L.: Socialism and Co-operation........ 1.50 Co-operation in Great Britain and Ireland, paper .25 Co-orEEATioN, Bound Volumes, 1915 to 1925 inclusive, each ......................... 1.25 Transactions of Second American Co-operative Congress, 1920 ......................... 1.00 Transactions of Third American Co-operative Congress, 1922 ......................... 1.00 Transactions of Fourth American Co-operative Congress, 1924 ......................... 1.00 Northern States Year Book, 1925. Paper..... .20 The People's Year Book, 1926. Cloth, $1.00; paper bound ........................... .60 (Ten cents postage should be added for books which cost more than $2.00, and five cents for the smaller books.) A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in voluntary association, produce and distribute for their own use the things they need. Published Monthly by THE CO-OPERATIVE LEAGUE 167 West 12th Street, New York City J. P. WARBASSE, Editor Entered as Second Class matter, December 19, 1917, at the Post OfKce at New York, N. Y., under the Act of March 3, 1879. Price $1.00 a year. VOL. XII, No. 6 JUNE, 1926 10 CENTS HEEE IS A CORNER OF the main grocery store of the United Co-operative Society of Fitchbwg. More than $147,000 worth of goods were sold from this one store alone last year. There are three branch stores,j^f£jFff88S£ser 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 Move ment. They may be ordered through The League: Bergengren, Roy F.: Co-operative Banking, A Credit Union Book ..................... $3.00 Blanc, Elsie T.: Co-operative Movement in Russia . . . . . . . ....................... 2.50 Brightwill, L. R.: Animal "Co-op" Book—For Children............................ .15 Faber, Harald: Co-operation in Danish Agricul ture, 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 American edition and notes, 1922. Cloth, $2.00: paper bound ..................... .90 Hall, Prof. Fred: Handbook for Members of Co operative Committees ................... 2.00 Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, $2.00; paper bound . . . . . . ........................ .60 Holyoake: Rochdale Pioneers ................ 1.00 Howe, Fred C.: Denmark, a Co-operative Com monwealth, 1921 ....................... 2.00 Jessness, O. B.: Co-operative Marketing of Farm Products ......................... 2.50 Madams, J. P.: The Story Retold............ .50 Nicholson, Isa: Our Story................... .25 Owen, Robert: Autobiography .............. .50 Potter, B.: Co-operative Movement in Great Britain. . . . . . . ....................... 1.00 Redfern, Percy: The Story of the C. W. S..... 2.00 Redfern, Percy: The Consumers' Place in So ciety, 1920 ............................. 1.00 Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918 ........................ 1.00 Smith-Gordon and O'Brien: Co-operation in Denmark. . . . . . . .................... 1.00 Smith-Gordon and O'Brien: Co-operation in Many Lands, 1920 ..................... 1.50 Stolinsky, A.: The Co-operative Movement. (In Yiddish). ............................ 1.00 Warbasse, James P.: Co-operative Democracy.. 2.50 Webb, B. and S.: The Consumers' Co-operative Movement, 1921. Board, $2.00; cloth..... 5.00 Webb, Catherine: Industrial Co-operation, 1917. 1.50 Woolf, Leonard: Co-operation and the Future of Industry ............................ 1.00 Woolf, L.: Socialism and Co-operation........ 1.50 Co-operation in Great Britain and Ireland, paper .25 CO-OPEKATION, Bound Volumes, 1915 to 1925 inclusive, each ......................... 1.25 Transactions of Second American Co-operative Congress, 1920 ......................... 1.00 Transactions of Third American Co-operative Congress, 1922 ......................... 1.00 Transactions of Fourth American Co-operative Congress, 1924 ......................... 1.00 Northern States Year Book, 1925. Paper..... .20 The People's Year Book, 1926. Cloth, $1.00; paper bound ........................... .60 (.Ten cents postage should be added for books which cost more than $2.00, and five cents for the smaller books.) A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in voluntary association, produce and distribute for their own use the things they need. Published Monthly by THE CO-OPERATIVE LEAGUE 167 West 12th Street, New York City J. P. WARBASSE, Editor Entered as Second Class matter, December 19, 1917, at the Post Office at New York, N. Y., under the Act of March 3, 1879. Price $1.00 a year. VOL. XII, No. 7 JULY, 1926 10 CENTS THE CO-OPERATIVES IN THE EASTERN STATES. There are (exclusive of credit unions and housing societies and mutual insurance companies) about 140 co-operatives in these eight states. Only 26 of them are yet affiliated with the Eastern States Co-operative League or The Co-operative League of the U. S. A. Most of the remaining 114 are isolated societies, without any central affiliations, groups of people satisfied'with their own efforts, complaceiitly indifferent as to what may be the fate of fellow co-operators in other sections, even indifferent as to the sources of help which they themselves will need when the day of misfortune arrives. The Pages immediately following tell something about a few of these co-operatives. (No, there are no co-operatives out in New York Harbor. But there was not room for four dots on Manhattan Island, so they were taken out for a ride on the ferries!) 122 CO-OPERATION Penetrating the Co-operative Jungle are approximately 140 consumers' co-operatives in New England, - New York and New Jersey. Barely 40 of these are well known to the Co-operative League or any other central organization. During the past two months two members of the staff of the League have been hounding down some of these unknown co-ops, taking them out of their hiding places and getting them up into the light of day. Some of these societies are so interesting they are worth writing about. Massachusetts has dozens of these unexplored co-operatives. The Belmont Co-operative Society, although quite unknown to the rest of us, is one of the largest in the state. Last year they did a business of $300,000. Among the respectable and conservative commuter population of the Boston suburbs, they have two classes of members : 135 are stockholders owning shares of stock at $25 each. There are in addition 700 non-stockholders who pay annual dues of $1 which entitles them to the rebate at the end of the year. The only advantage in being a stockholder is the 6 per cent interest on investment. In Cambridge, within a few blocks of each other, there are two Lithuanian co-operative societies. One of them owns two stores and does a small and not too profitable business among the church-going members of that nationality. The other is a much more prosperous institution, organized among the socialists and other radicals. These 150 shareholders have built up a reserve fund enabling them to own their corner building and also two tenement houses. The society pays neither interest on capital stock nor rebates on purchases but retains everything for expansion of their grocery and meat business. High in the Berkshires in the town of Adams, there is a Polish co-operative grocery and meat store, a Polish co-operative bakery, and a co-operative coal and wood company organized among the German, English and American people. The last is the oldest of the three and is doing a business of approximately $40,000 annually, in fuel. Incidentally, the directors have adopted the policy of putting no more stock on the market. Sales to non-members prove to be rather profitable when the profits from them are distributed to the members along with the surplus on their own purchases. The Polish store and bakery, although run by two separate societies, are supported by the same people. The selection of the manager for the bakery, this year, illustrates what peculiar ideas co-operators sometimes have. They took the owner of a retail store, which is running almost directly across the street from the co-operative store, and made him manager of the co-operative bakery. At Pittsfield is perhaps the most prosperous co-operative coal company in the country, doing a business of nearly $300,000 a year in coal only. Here again the mistake is made of refusing to take in new members. The theory behind the policy here at Pittsfield, as in Adams, is that the members are entitled to the profits of sales from non-members and if a large number of new shareholders were admitted, the purchase rebate would drop below the customary 5 per cent. John L. McLaughlin, the manager, has been in charge here many years and is a suc cessful administrator. CO-OPERATION 123 Fitchburg, Mass., boasts of a Finnish co-operative and a Finnish credit union, both of which are a great credit to the Co-operative Movement. There is in the town another co-operative which nobody boasts about. It is a little co operative society whose manager says that neither he nor the directors are inter ested in any other co-operatives and have no information to give to The Co operative League. The Producers and Consumers Co-operative Association of South Framing- ham, maintains an excellent store for the sale of groceries, meat, and fish, under very competent management. Entire lack of education and too large a plant for the $66,000 worth of business annually, is the reason for failure to more than break even. The members are farmers, workers and ordinary middle-class Americans. At Leominster, the Italians have a little store doing less than $40,000 worth of business. As is customary, in so many Italian stores, the business is run by a clerk and the manager holds an outside job giving attention to the business only during the evenings and on Sundays. At Sagamore 60 Italians maintain a general store. They pay 5 per cent on capital and serve their fellow-Italians to the tune of about $27,000 of merchandise a year. In the nearby town of Plymouth another group of 325 Italians operating under" the popular name, "Christopher Columbus Consumers' Co-operative So ciety" do a slightly larger business. In the same town, the old, well established, Plymouth Co-operative Association, organized among the American and English workers and having 500 shareholders, is doing a business of about $75,000 a year under strictly Rochdale principles. In Clinton it is the German mill workers, ably supported by English and Scotch people, who have built up an annual business of $101,000. For the past four years they have returned a purchase rebate of 10 per cent. We didn 't even get to the little town of Winchendon but some good friends advised us to write to the Co-operativa Italiana. Almost by return mail we got a fine little protograph of their store and members, and their reports show that 50 shareholders are loyally supporting a grocery, meat, dry goods, and shoe business amounting to $32,000 a year in sales. One answer in their report which we ques tion is a statement that they paid a 20 per cent purchase dividend last year. So much for Massachusetts. Rhode Island does not boast so many co-opera tives. At Saylesville 100 employees of the large mill in the town organized a co-operative which is being directored very much by officials in the mill. The present manager seems to be making an effort to buy up most of the stock. Ap parently he considers the business successful! At Pascoag, 164 textile workers and farmers have been running a co-opera tive store since 1890. The sales are only $46,000 a year. In Harrisville a group of American and English co-operators have a business of $100,000, handling all kinds of food stuffs, dry goods, hardware and general merchandise. Connecticut boasts of many groups of foreign co-operatives. In Terryville there is both a Ukrainian co-operative and a Polish co-operative. The manager of neither was very communicative when questioned. The former apparently is run like an ordinary joint stock company with all profits returned to the 70 share holders. The business is scarcely more than $25,000. At the Polish store the business is $35,000 and a regular 1 per cent rebate is returned to members and 124 CO-OPERATION non-members alike and 7 per cent is returned on stock. Both groups own their buildings. At Bristol 57 Polish people have a small grocery business but apparently are not able to pay either interest or rebates and the manager knows very little about the inside workings of the association. New Haven boasts of having what is one of the few living co-operative laundries in the country. Six years ago eighteen women rented a barn, installed a couple of washing machines and started a co-operative laundry service to sup plant the individual laundry maintained in their various homes. To-day there are twenty-two members and eight additional patrons of the laundry. Two wash ing machines and a mangle constitute the only expensive equipment. Drying is all done on the old fashioned clothes line in the back yard. The weekly income is about $240 and for the past few years the Co-operative Laundry Company was operated at a slight gain each year. The success of this institution is due in no small measure to the compact and intimate membership and to the fact that these people would rather pay a little more for good service than go to the commercial laundries. New Haven also has an interesting Italian society, known as the Co-operative Society Marchegiana, organized last October. The store handles groceries and meats and sells nothing for cash. There are only 80 members and no goods are sold to transients or non-members. Every member invests in a credit book. These books are issued in dimensions of $1, $5, $10 and $20. For every purchase at the store a corresponding amount is registered in the credit book. Thus the only cash handled by the manager or his assistant is cash taken in on the issuance of a new book. Business averages about $2,500 a month. To date no adequate tour has been made of any part of New York State. Maspeth, L. I., a suburb of Brooklyn, has both a Russian and a Polish co-opera tive store, the former with a membership of 75 and the latter with 103. The manager of neither store seems to be very clear on co-operative principles and recent reports from the Russian co-operators of Brownsville indicate that the Maspeth store is having financial difficulties and some of its Lithuanian members wish to withdraw their investments. The consumers' co-operatives in New Jersey are situated almost entirely in the suburbs of New York. In addition to the well known Purity Bakery and the Co-operative Butcher Shop at Paterson, there is also a little Italian co-operative store organized fifteen years ago and having a membership of 220, no one of whom is allowed to own more than one $10 share of stock. Sales in 1925 were $62,000 and the man in charge is one of those unusual Italian managers who knows what he is doing. Last year they made about $1,200 profit. In the neighboring town of Clifton another group of Italians are running one of the most prosperous co-operatives to be found in the United States, under the name of the Italian-American Family Association, organized seventeen years ago. They operate a grocery and meat store, pool room, assembly hall and re freshment bar. There are 550 members each of whom contributed a five dollar membership fee. There is no capital stock. In 1925 the sales were $145,000 and the profit about $11,000, most of which was made on the assembly hall, pool room and bar. The grocery and meat business is run on a cost plus basis. Organized entirely without capital stock, the association now has, from its members, a loan capital fund of $56,830 and in addition a reserve fund of $66,389 made out of accrued profits. One hundred fifty of the Passaic strikers are being given relief regularly through this store. It would be possible to extend indefinitely these examples of isolated socie ties. Our movement should have at least one man in the field constantly visiting these people, advising them where possible, and establishing confidence in the idea of a central co-operative federation such as the Eastern States League is trying to build up. CO-OPERATION 125 Vital Issues GERMAN CITIES JOIN CO-OPERATIVE SOCIETIES For some years a strange movement has been going on in Germany. Cities have been joining the local co-operative society. At the present time more than seventy-five municipalities have become members of the distributive society. This means that the municipality as a whole, the political organization which elects a mayor, city council, and other govern ing officials, votes to join the co-opera tive society as a body. This indirectly connects every citizen with the co-opera tive society. We have piiblished in this magazine the names of some small towns in North ern Germany which have taken this step. More recently larger cities are doing the same. Such cities as Cassel, Diisseldorf, Essen, Heilbronn, "Rostock, and Weimar have become members of the local co operative consumers' society. The advantage which the city enjoys in connecting itself with the society is that it is able to make its purchases on better terms. These cities maintain hos pitals, welfare institutions of every sort, and many of their departments are large c.onsumers. Many of them see the ad vantages of coal and milk being distrib uted by the co-operative method. By joining the co-operative society, they solve the problem of responsibility of distribution in many fields; all in the interest of their citizens. In countries such as England, Bel gium, and Austria, where the idea of political socialism is strong, the trend is in the opposite direction. In those countries one actually finds members of co-operative societies voting to have the political municipality take over more and more of their distributive business. This idea is especially strong with refer ence to coal at the present time. But the New Germany is pretty well cured of its old political ideas. It is turning more and more to voluntary or ganization of the people to solve their consumers' problems. Even politicians are growing sympathetic to the co-opera tive idea. At the recent celebration of the twenty-fifth anniversary of the Co-opera tive Society of Cassel, the mayor of the city sent a congratulatory letter in which he recalled the occasions when the so ciety had come to the help of the municipality in times of need. "These services," he said, "rendered in periods of extreme difficulty, will never be for gotten. May the society continue to be a blessing to the people of the city." This slow and constructive movement in which the people do things for them selves, goes steadily forward. It is releasing the people from the complica tions, the red tape and the indifference of the political machinery. It is making new demonstrations of its efficiency and practicability. The fundamental sound ness of the co-operative idea is the reason for its progress. J. P. W. DISCIPLINE AMONG CO-OPERATIVE WORKERS One of the oldest criticisms levelled against the co-operative movement by its enemies is that a business owned and administered by workers cannot procure that efficiency which is essential for suc cessful competition with private busi ness; the workers will demand excessive wages, soldier on the job, talk back to the manager. The charge is made too often and is usually exaggerated. But, unfortunately, there is some truth in it. In fact, we know of one co-operative where it recently became necessary to install a timeclock in order to cure the employees of cutting short their working hours. Much of the European experience seems to indicate that this is a more serious menace to the producers' co operatives than to the consumers' co operatives. In the former the employees, permeated as they often are with the old trade union psychology which has taught them that the first interest as union mem bers is to seek a higher scale of wages and shorter hours, carry over into the co-operative factory this same attitude, 126 CO-OPERATION CO-OPERATION 127 and having the power to hire or fire their own managers, they can too easily wreck the whole enterprise. A statement which comes to our attention in E. A. Lloyd's new book, "Co-operative Movement in Italy,'' shows us how serious this danger is. Signer Belilli, one of the Italian co operative leaders has this to say about the situation,—"There are too many co operative societies in Italy and too many people who call themselves co-operators. If the Trade Unions to increase their efficiency require quantity, Co-operation demands quality—moral and technical quality. . . . We are reproved, and sometimes justly, because work executed by Co-operative (producers') societies costs more. Is it not time to see whether this occurs through lack of discipline in the workshops or whether even, through not taking individual values into ac count, we have allowed the simple idea of equality of wages to become rooted in the masses? We have many workers who fulfil their duty diligently, but there are others who, indeed, in General Meet ings shout for the 'eight-hour working- day, increases of wages,' etc., but then go to work five minutes late, work with out will, spend their time reading the newspapers and will not submit to any discipline. We must tell such workers in the clearest terms that they have not the right to exploit the co-operative movement and their fellow workers. We must establish the rule that each work man must be regarded as worth what he produces.'' And Signer Quaglino, one of the fore most leaders of the Builders' Guild movement, has this to say,—"If our workers have one defect it is that under the lash and the threats of the capitalist speculator they produce more, whilst under the fraternal treatment of co-op eration they produce less." Though the situation is not nearly bad enough in our consumers' co-opera tive movement to cause alarm, still we can learn much from these comments of two of the leaders in the field of co partnership. In our societies where this kind of difficulty is causing trouble, we must push among the employees Educa tion, Education, and more Education. COEPOEATION VERSUS CO-OPERA TION IN COST OF COAL Secretary George Keen of the Co-oper ative Union of Canada has made an in teresting comparison of the capital charges against the coal mines at Sydney Mines, Nova Scotia, belonging to a huge British corporation, and similar charges against the coal mine operated by the Co-operative Wholesale Society of Eng land. Total capitalization, minus reserves, of the British corporation amount to $129,000,000, a sum vastly in excess of any actual assets the company may own. There are 12,500 miners working in these coal pits, and working only part time and at low wages. This means that each miner carries the load of $14,320 of capital charges. Supposing that an aver age dividend of 6 per cent were to be levied against this capital (which is cer tainly much less than most owners of coal properties have expected in the past), each producer in the mine would be carrying an annual interest charge of $619.20. The C. W. S. mine at Shilbottle is capitalized at the very low figure of $129,175 (no watered stock included!). There are 447 men employed in the mines. In other words, the investment per man-power is only $288.98. As only 4.23 per cent was paid on capital in 1924, the interest charge per worker was $12.21. More than half of the net profits for 1924 were returned to the consumer members of the C. W. S. There you have it. Capitalism charges each worker with a tax of $619.20, while Co-operation charges him only the $12.21 which it requires for the pur chase of credit. Here is the reason for the failure of the mining industry to function efficiently in Great Britain and America. When are the co-operators in this country going to learn to apply the same efficient economic principles to the mining of coal that they now apply to the administration of hundreds of co operative stores, bakeries, restaurants and credit unions? C. L. What is the Relation of Producers and Con sumers in the Co-operative Movement* By JOHN H. WALKER President Illinois State Federation of Labor As a practical matter, the question could be answered in a number of ways. First, from the point of view of an ideal co-operative movement in which prac tically all of both production and con sumption was handled through one co operative organization. Or, it could be answered as applied to co-operative pro ducers organizations as such, with no connection between them and the con sumers co-operative institutions, except that they would sell to the latter their products just as they would to any private corporation. Or, as applied to consumers organizations having no con nection with producers organizations, except as they bought from them. It could be made to apply to the co-oper ative situation as it exists in our own country at this time, where there is per haps less of a co-operative movement than in any civilized country in the world. Or, as applied to any one of the different operating productive and consumers co operative institutions now existing in Australia, New Zealand, France, Russia, Austria, Hungary, Poland, Czechoslo vakia, Holland, Switzerland, Belgium, Germany, Great Britain, Norway, Sweden, and Denmark. To attempt to deal with all the dif ferent situations would take up more space than an article of this kind should cover, and to deal with only one of them, would be of little value. I will deal with the general subject in a way that I think will be most helpful. The most serious obstacle in the way of establishing and building up in the United States a real consumers and pro ducers co-operative movement which would include the finances and proper * This is the seventh in a series of articles under this title. The others have been from the viewpoint of the Social Scientist, the Labor Banker, the Urban Co-operator, the Labor Educator, the Farmer, and the Student of Agriculture. financial machinery for caring for it, etc., is the complete lack of knowledge' about the movement and the benefits that (both immediately and ultimately) can be derived from it, also the prejudice- that obtains against a co-operative move ment in the minds of the workers, due to that complete lack of co-operative knowledge about it. In addition to that, in our country, the interests which co-operation will sup plant seem to be better informed than the workers as to what a real co-opera tive movement would mean. These enemies of the co-operative movement have studied it and its effects on private traders in other countries, and they are organized in our country to prevent its establishment and upbuilding, perhaps better than the enemies of that move ment ever were in any other country in the world. They have apparently greater resources with which to fight it and under our laws and customs and conditions, seem to have greater latitude in the methods they use in opposing its establishment or in destroying it where it has been established. These things should be clear in the minds of those who are starting such an institution or who have one organized and operating. Unless they are, the co-oper atives are likely to meet with disaster. The lack of information is a natural consequence of our not having a co-op erative movement here and the trade union movement not being in close touch with the co-operative movements in other countries. The prejudice is largely a consequence of the activity of the private merchants and private interests within our nation, who are intelligently and ceaselessly working to prevent its estab lishment. For instance, in a town in which an attempt is being made to establish a con sumers co-operative society and operate stores, it seems that every merchant is 128 CO-OPERATION not only opposed to it, but is able to influence his employees to oppose the in stitution; and as the average worker in the community is employed by a private merchant or manufacturer, practically all the workers are against Co-operation. As the bankers and newspapers are almost entirely dependent on the local mercantile and manufacturing establish ments, they too are influenced to oppose a co-operative movement; and as they in turn influence the railroads, whole salers and jobbers, we find that prac tically every institution and influence in existence is antagonistic and opposed to the creation and upbuilding of a move ment, which, in the judgment of the private corporations, is intended ulti mately to supplant their institutions and put them out of business. These conditions I think are mainly responsible for most of the co-operative failures that have taken place in our country. They can be overcome only by an educational campaign, and (at least in the beginning) by the selection of men and women as members and officers, managers, etc., of the co-operative in stitution whose interests are not likely to be antagonized by the upbuilding of such an institution, and who have such a knowledge of it and are so committed to it that nothing will change them from their love for it, their loyalty to it and their determination to establish, upbuild, and extend it. A producers' co-operative institution so called, where it is not connected with a consumers' co-operative either directly, through being part of it, or indirectly by agreeing to sell to it, is practically the same thing as the ordinary corpora tion operated for private profit, except that (1) there are perhaps more stock holders in it, (2) sometimes more of the stockholders work in it than in the ordinary corporation, and (3) the stock is usually held in lesser quantities than in the ordinary private corporation. The consumers' co-operative institution which is operated purely for the purpose of reducing the cost of living, is little different from the ordinary mercantile corporation operated for private profit, except that there are a great many more stockholders in it, holding a lesser amount of stock than ordinarily. Per haps more of the members of that cor poration or of the members' families are working for it, than work for the ordi nary private corporation. However, if in either of these institutions the pur pose is to develop a real co-operative movement which has for its goal the reduction of the cost of living, the im provement of conditions of the workers, the education of the people, and the exercise of its power and influence in the interest of humanity generally, then that institution can be classed as a rea] part of the co-operative movement. The farmers' producers' co-operative societies serve in the same capacity for them that the trade unions do for the wage earner, except that their organiza tion markets the products of their labor, whereas the trade union markets the labor of its members directly. Although the farmers who are organ ized co-operatively may feel that their interests and that of other workers, wage earners (who constitute the farmers greatest market) are in a sense, recip rocal, ordinarily, these farmers seek to serve their own immediate personal interests first, regardless of how those wage earners may be affected. They try to get the highest price possible for their own products and try to get their products for the lowest price (perhaps these products are non-union or even prison made). The wage earner in the trade union movement who must buy the farmers' products in order to live, wants them as cheaply as he possibly can get them. At the same time he gets as much as he can for his labor. And so a feeling that is not altogether friendly obtains between them most of the time. Both the intelli gent trade unionist and the intelligent farmer can see beyond these situations created by conditions that they do not yet control, and they act in a friendly way towards each other wherever they can. These wise trade unionists know that the farmers' interests and their own are mutual, and that the farmer is their largest single market. When the farmer has good prices, the industrial worker has a good market; when the farmers have poor prices, they cannot buy the CO-OPERATION 129 products of industry, so industry shuts down and the trade unionist is out of work. The intelligent farmer is beginning to understand that when the wage earner has good wages and steady employment, he has a good market, and gets good prices for his products. The intelligent merchant and professional man is also beginning to understand that when the wage earners in the modern industries are receiving good wages and continuous employment and the farmers are getting good prices for their products, that then they get their fair share of business— that, in other words, there is prosperity for all. They, too, are beginning to understand that when the farmer has poor prices for his crops and the wage earners in the industries have low wages and are largely or partly out of employ ment that they then do not get the busi ness nor the kind of prices for their services that they should receive. When this knowledge and this senti ment becomes general, then, in my judg ment, will it be easy to start consumers co-operative societies. The wage earners will start their own wholesale institu tions for the same reason that they started their consumers' co-operative retail stores. The farmers will have not only their producers' co-operative socie ties, but they will use this machinery (the organization and equipment of their producers' co-operative society) to buy for themselves the things that they do not raise and must have in order to live. The wage earners in the other indus tries, in order to avoid paying for ex cessive profits to private manufacturers and excessive costs for unnecessary and high-priced offices and salesmen, and in order to maize it easier for themselves to get what they are entitled to as workers and to maize their position more secure and less onerous, will start their own factories for the production of these articles. These consumers' co-operative societies will then be owning their own wholesale and their own factories, producing things that the farmers need and perhaps buy ing raw products from the farmers them selves, processing them and then selling them back to the farmers. In the fixing of prices for those things which they buy from the farmers and those things which the farmers buy from them, they will be brought face to face with the problem of the exchange of products; and the conditions which each group of producers (and consumers) asks for themselves they will, of necessity, be willing or compelled to grant to the other fellows. It is my judgment that when earnest, capable men in responsible positions, working for a great cause begin to act as arbiters between the producers in agriculture, and the producers in indus tries, employing themselves and large numbers of men in widely different capacities, determining the question of what wages men are entitled to, the number of hours they should work, the conditions under which they should work and the respect, consideration and treat ment they should accord one another— then these problems will become very well understood. The basis for their* solution will be so clearly understood that there will be little possibility of their getting into disputes with each other. A serious dispute would result in their starving themselves by a cessation of work on which they were mutually dependant. (To lie continued next month] Co-operation Pays for Minnesota Highways By GORDON H. WARD Consumers Co-operative Oil Com- pany of Clarkfield, Minnesota, de clared a patronage rebate on its business for 1925 of two cents per gallon of gasoline. Since the state trunk highways are partly financed by a gasoline tax of two cents per gallon, these co-operators earned their tax to pay for the highways by doing business together. They also paid a patronage rebate of two cents a gallon on kerosene and five cents a gal lon on oil. And after paying these r 130 CO-OPERATION CO-OPERATION 131 patronage rebates they had a net surplus of $4,978 to put into the reserve. The company paid $58,000 for the goods and sold them at current market prices for $86,948,' making a net gain of $19,000 after paying $6,050 for operating ex penses and $4,026 for salaries and wages. They have $10,865 invested in plant and equipment, though the paid up stock amounts to only $6,530. A private con cern could have declared 200 per cent dividends on its capital stock. The Marshall Co-operative Oil Com pany has capital stock amounting to $14,000 and had profits available to pay rebates of $18,209 on the 1925 business. They could have paid 150 per cent divi dends on stock. But instead they paid only 7 per cent, the going rate of inter est, on the stock and paid $7,447 patron age refund to members and $1,953 patronage refund to non-members. This company handled 57 cars of gasoline, 17 cars of kerosene to light the farmers' houses and run their tractors, and 10 cars of distillate as well as several cars of oil and over two tons of grease! The Farmers Co-operative Oil Asso ciation, at Hayfield, Minnesota, bought merchandise for $17,279 and sold it for $35,421, with a net gain of $3,197. They paid $2,052 in salaries and wages and paid the balance of $1,307 they owed on the station. These farmers bought a piece of ground and put up a plant worth $6,413 with equipment worth $3,000. They still owe the bank $5,554 and the former owner of the real estate $1,527, but they are accumulating their gains and will be able to pay these debts when due. The Martin Oil Company made a net gain of $10,028 on its first year's sales of $98,201. These farmers took stock at $25 a share sufficient to put up a plant and equip it to the value of $20,600. Another association saved its members $5,128 and created a reserve of $1,392 by purchasing for them 30 cars of gasoline, 14 cars of kerosene, and 4 cars of oil. These are but typical instances of the success the farmers of Minnesota are having in co-operating as consumers. They have long realized the advantage of working1 together in marketing their products and are now gaining an under standing of the benefits of group pur chasing of consumers' goods. There are at least eighteen of these co-operative oil stations throughout the state making very encouraging progress. Most of them were started in 1924 and have been operating for nearly two years, many of them with increasing success. The larger stations require an investment of about $20,000, though several of the most successful have only $10,000 in plant and equipment. It only takes about 100 people sufficiently inter ested to subscribe $100 each to start one of these stations. The International Co-operative Day TO THE CO-OPERATORS OF THE WORLD The FOUBTH CELEBBATION of the INTERNATIONAL CO-OPEEATIVE DAY will fall this year upon SATURDAY, 3rd JULY. The INTERNATIONAL CO-OPERATIVE ALLIANCE now groups 34 States and more than 50,000,000 Co-operators. The inter national idea makes steady progress in permeating the minds of men and women of good will everywhere. The necessity of assuring the fundamentals of our Movement—the substitution of the spirit of asso ciation and common benefits for the gospel of individualism, "laissez faire," and private profit; the democratic control of industry and commerce; the elimination of profit; and the social uplifting of the common people—takes hold more and more upon the imagination of those who seek to establish, for themselves and for posterity, a happier and juster social order. The INTERNATIONAL CO-OPERATIVE DAY will afford an opportunity of manifesting once again the solidarity of the Co-opera tors of the world; their unquenchable determination to make their economic principles prevail, and the right of association maintained in order that the Co-operative Commonwealth may be realized. CO-OPEEATOES OF THE WORLD! DEMONSTRATE IN YOUR MILLIONS FOR THE SOLIDARITY OF THE MASSES OF MANKIND AND THEIR EMANCIPATION FROM INDIVIDU ALISM. On behalf of the INTERNATIONAL CO-OPERATIVE ALLIANCE, G. J. D. C. GOEDHAET, H. J. MAY, President. General Secretary. Foreign CO-OPERATIVES IN THE BRITISH STRIKE News from the co-operators regarding the Great Strike in England comes to the U. S. very slowly. But certain facts are evident. At the annual Congress of the Co-operative Societies of England, Scotland and Wales, held in Belfast, the following resolution of support and aid for the striking coal miners was passed: "That this Congress regrets the pres ent difficulties in the industrial world owing to the mining crisis, and expresses its strong belief that the miners' stan dard of life should not be reduced, and urges the Government to implement the Eoyal Commission report with regard to the re-organization of the industry. "It further resolves that as a practi cal means of giving assistance to the workers involved in the dispute, the Co operative Union should organize within the movement a central fund for the pur pose of helping societies and their mem bers to meet the demands made upon them in consequence of the dispute." A previous resolution calling upon the Central Co-operative Union to make a grant of $25,000 to the Miners' Union was ruled out due to the fact that the constitution of the Union does not per mit appropriation of funds for such pur poses. The substitute resolution calls upon all the co-operatives of Great Britain to contribute to a general fund. The Union of Co-operative Officials was first to respond with a gift of $2,500. The British Co-operative Union is made up of 1,445 societies having a total individual membership of about 5,000,- 000 co-operators who have an investment of $430,000,000 in their societies and do an annual business of $950,000,000. The strike of the printers so tied up the Printing Workers of the C. W. S. that the May 8th issue of The Co-opera tive News was not published at all, and the May 15th issue was only one quarter its regular size. This curtailment was made necessary because the printers in the C. W. S. plant were giving all their attention to getting out the "British Worker" official title of the strike organ of the Trade Union Congress. The Scot tish Co-operator was forced to suspend for two weeks. All of the local societies and the Wholesales in particular, suffered much because of the shutting down of so many factories from which they were accus tomed to get their goods, and because of the stoppage of the railroads. However, many co-operative stores were able to give better service to their customers than private stores, for the C. W. S. gave better service to the Co- 132 CO-OPERATION operatives than any private wholesaler could possibly give to private grocers. On the other hand, the co-operatives from which clerks and other employees were called out suffered much more than private stores. The co-operatives make membership in trade unions compulsory for their employees, whereas less than 10 per cent of the workers in private stores are union members. Therefore, the loyalty of the co-operatives to the trade union movement actually hurt the co-operatives and the co-operative mem bership (which is made up of trade unionists in large measure) more than it helped them in this particular crisis. A solution for this situation must be worked out before another general strike comes to England. The C. W. S. Bank prepared for emer gencies by carrying $35,000,000 on call and an additional $100,000,000 of gilt edged securities upon which it could re alize cash at short notice. The one trou ble experienced was in getting money transported quickly to societies calling for it in an emergency (caused by the demands of some of the unions for large amounts of ready cash). The transport department of the C. W. S., in the absence of the customary transport facilities sent out eighteen motor trucks which brought back 700 casks of butter and 230 bales of bacon. Many of the productive departments of the Scottish Wholesale had to suspend large forces of their staffs, and the boot and printing factories closed down en tirely. The tobacco factory was also closed down the first week, but was per mitted to open on Monday of the second week. A peculiar situation developed when the Trade Union Congress withdrew transport permits from the Scottish C. W. S., seriously handicapping its work. For soon afterward the National Union of Railwaymen failed to raise money to pay its men on strike and had to apply to the Scottish C. W. S. for a loan! At the Wallsend Co-operative Laundry the transport workers quit work, thus enabling the non-union private laundry companies to corner all the laundry business. The co-operative officials have protested vigorously to the trade union leaders against this action. The same thing happened at Bolton, where the Co-operative Society, though it had three weeks' supply of coal on hand, was absolutely unable to deliver it to the members, although the trucks of private competitors were carrying coal through the streets every day. There were several other instances where the hasty action of strike leaders caused more injury to the co-operative forces of labor than to the hostile forces of capitalism. At Shettleston Society (Scotland) many of the windows of the co-operative stores were broken (perhaps by stones meant for scab drivers of the buses and trucks) and thieves took shoes and other goods to the value of $500. The Direc tors are suing the Town Council for damages. BRITISH CO-OPERATORS OFFER ORGANIZED RESISTANCE TO WAR At the Annual Congress of the co operative societies of Great Britain held in Belfast in May, the following resolu tion was passed by the delegates present. This Co-operative Congress, realizing that war is the negation of the ideal of an International Co-operative Common wealth, desires to place on record its ab horrence of war and violence. It recog nizes that wars are mainly due to eco nomic rivalries and injustices between nations, and that these must give way to co-operation and service before war is ultimately abolished; but, believing that the final decision between war and peace lies in the hands of the general commu nity, it urges co-operators everywhere to determine upon a policy of complete war resistance in the event of a war emer gency, so making it known to the Govern ment that co-operators will not hold themselves responsible either for the present unjust economic system or for the evils of war arising from it. This Congress is the annual gathering of delegates from 1,445 societies with an individual membership of almost 5,000,- 000 workers and farmers of England, Scotland, and Ireland. CO-OPERATION 133 DISCUSSION OF THE WAGE SYSTEM M. Charles Gide, the foremost spokes man of the co-operative movement in Prance, in a series of lectures given at the College de France in February and March, 1924, now published under the title Le Programme Co-operatiste et le Salariat, discusses the wage earning sys tem and its relation to co-operation. De fining the wage-earner as one who has an employer but no client in contradistinc tion to the independent worker who has clients but no employer or master, he denies the contention of many that the wage-earning system is an outgrowth of serfdom, itself an outgrowth of slavery, and points out that there have been wage earners down through the centuries, even from Biblical times. He enumerates the benefits of the system from the point of view of the economist as well as the ob jections put forth by its opponents. The crucial problem is to find a satisfactory system to take its place, a problem that is particularly difficult of solution in the industrial world. In agriculture it has been partially solved by the expropria tion in many European countries of large estates, their breaking up into small holdings given over to the small farmer or peasant who thus becomes his own master, economically dependent upon what he himself produces. That is one solution of the problem. The only other possible one is that the worker be in the service of a society or a nation, in which case, whatever name he may be called by, he is still in reality a salaried worker. Hence the demand for the abolition of the wages system is being replaced by a demand for abolition of profits, which is, in the end, the same thing. That is what the consumers' co-operative societies stand for. The employee knows that he is not working for an individual or a class but for the good of society of which he is a part. The question of the wages system is psychological rather than eco nomical. The worker will cease to be a wage earner on the day when he no longer thinks he is one. News and Comment PLANS FOR THE FIFTH CONGRESS The Fifth Congress of The Co-opera tive League, which takes place in Minne apolis from November 4th to November 6th, is approaching. Plans are slowly l)eing worked over and put into final form. In response to the Tentative Pro gram of the Congress, sent out to the Board of Directors for approval, many new suggestions have come back, as well as comments or approval of program items. A final referendum is now in the hands of Directors, asking their choice of subjects to be presented. Among the more important topics which have been suggested are the following: Uniformity in Co-operative Ac counting Co-operative Insurance and Our Distributive Movement Co-operative Banking and Our Distributive Movement Educational Work Inside the Store The Colored Poster in the Educa tional Work Relation of the Consumers' Move ment to Co-operative Marketing Relation of the Consumers' Move ment to the Labor Movement Celebration of International Co.- operative Week The Fight Against Fascism Co-operative Delegation to Russia Co-operative Year Book Co-operative Training Schools Obviously, some of these subjects must be eliminated, for lack of time, and this the Board is now doing. Local entertainment and hospitality is being planned by the Franklin Co-opera tive Creamery Association and the Northern States Co-operative League. Meanwhile, in response to the Call to the Congress, mailed out to 2,500 societies throughout the country, many replies are already coming in with the news that delegates are being appointed. Mabel W. Cheel has been visiting so cieties between California and New York during the latter part of May and most of June, speaking before good audiences and talking Congress plans. International Unions, State Federa tions of Labor and Local Unions in the 134 CO-OPERATION CO-OPERATION 135 North Central territory will receive dur ing the next few weeks invitations to send fraternal delegates. CREDIT UNIONS IN MASSACHUSETTS The Massachusetts Credit Union Law has just been revised. The actual revi sion was done by a committee of active credit union leaders appointed by the banking commissioner and the legisla ture finally adopted the new law a few weeks ago. The most interesting new features of the law are as follows: 1. Credit union banking can now be done only by genuinely chartered credit unions and all informal organizations doing a credit union business will have to incorporate. 2. Membership in a credit union may now be held by fraternal organizations, voluntary associations, partnerships and corporations which are composed prin cipally of members who themselves are eligible to credit union membership; and these new members may borrow from the credit union. Thus co-operative associa tions may now hold membership in a credit union. 3. Members of credit unions may have an investment of as much as $4,000 in their credit union in combined shares, deposits and earnings. If the credit union does not take deposits, the mem ber may hold $4,000 worth of shares. 4. Under the new law, the board of directors must have at least eleven members and the credit committee and auditing committee are both chosen from among the board members. 5. Not more than 6 per cent interest may be paid on deposits and the dividend on shares is limited to 8 per cent up to such time as the guarantee fund equals 15 per cent of the assets. 6. Credit union investments (except loans to members) are limited to any bonds or bankers' acceptances which are legal investment-for savings banks in the state and also to shares of co-operative banks. 7. Loans are of two kinds (a) per sonal loans, (b) loans secured by mort gages. All personal loans must be paid or renewed within a year. Careful pro vision is made specifying just how per sonal loans must be figured. 8. Credit unions having assets of less than $75,000 may make mortgage loans not to exceed 50 per cent of their com bined shares, deposits and guarantee fund. Credit unions having assets of more than $75,000 may make mortgage loans to a total of not more than 70 per cent of their shares, deposits and guar antee fund. No single mortgage loan whether first, second or other mortgage may exceed $8,000. A loan secured by a first mortgage must not exceed 60 per cent of the value of the property. 9. Credit unions are given five years in which to adjust themselves to any of these new laws. There is an important provision authorizing credit unions to reinvest mortgage loans quite regardless of the percentage limitation. There are other minor changes. The Massachusetts law now easily ranks as the most liberal credit union law in the country. STUDENT CO-OP ATTACKED A recent issue of the Minnesota Daily, paper published at the University of Minnesota, and reputed to be the largest college daily in the world, carries a full- page headline announcing that the book store which the students propose to open next fall, is meeting the organized oppo sition of the merchants of St. Paul and Minneapolis. A recent poll taken of the students showed 1,975 in favor of such a co-opera tive and only 56 opposed. As a result of this vote plans are already under way for the opening of the students' co-opera tive early in the fall of 1926. At the beginning, books and stationery only will be sold, but later the business will be ex panded to include other articles pur chased by the students. Other college stores of this nature, such as that at Har vard, Syracuse, Cornell, California, etc. have now grown to the size of complete department stores, selling absolutely everything a student needs,—whether furniture, clothing, food or class room supplies. One of the merchants leading the at tack states that "Co-operative organiza tions tend to teach communistic methods to students and cause them to destroy the modern economic system of retail trade." Another merchant opposes the plan on the score that the co-operative store would be tax-exempt and would thus have an advantage over private mer chants. The third enemy of the co-opera tive says that although he has the welfare of the University at heart he must look out first for his own job which depends upon the patronage of the students. Lester Swanberg, president of the All- University Council, appointed a commit tee to investigate the co-operative pro ject which has culminated in the present decision to open a store to be owned and controlled by the students themselves. Apparently the students at the Univer sity of Minnesota are to learn about Co operation by practicing it as well as by reading books about it. FARMOTGTON, ILLINOIS The Farmington Co-operative Society, one of the largest and most successful in the state, reports total income from sales for the first quarter of 1926, $25,445 and a net gain of $3,072. The interesting feature of this report is the fact that the gross profit is 23.6 per cent of sales and the total expenditure is only 11.6 per cent of sales while the profit was 12.7 per cent of sales. In other words all the expenses together amount to less than the profit for the period. The share capital outstanding is $14,- 757 and the loan capital $7,260. The reserve fund now amounts to $20,329. GLEN CARBON, ILLINOIS The co-operative society of coal miners at Glen Carbon, in spite of the acute de pression in the bituminous industry are keeping up the good work. Financial re port for the end of the first quarter of 1926 shows an income of $6,745 for the three months on which a net gain of $265.50 was realized. There are not many co-operatives in the country doing a business of only $500 a week which can show such a good profit. The paid in share capital is now $4,560 and the members' loan capital is $3,210. A reserve fund of $1,670 testifies to con tinued good management over the course of several years. District Leagues ARGUMENTS TOR CO-OPERATIVE FEDERATION The Secretary of the Northern States Co-operative League has made an inter esting analysis of 66 co-operative stores in the state of Minnesota during 1925. Sales for these stores in 1924 were $4,748,777. In 1925 they were $5,117,- 535, showing 7.7 per cent increase. In 1925 eleven of these stores had sales of more than $100,000 each and 37 of them each had sales between $50,000 and $100,000. The statistics of the 11 stores affiliated with the Co-operative Central Exchange increased their business in 1925 by 15 per cent over that of the previous year while the 55 non-affiliated societies in creased their business only 5.8 per cent. Thus the sales of the federated group in creased almost three times as rapidly as those of the isolated stores. This can be explained partly by the fact of the mer chandising help extended by the whole sale and perhaps even more by the ex cellent educational work done by the Central Exchange for its local managers, directors, and members. The membership of the Central Ex change stores increased by 15.8 per cent while the membership of the isolated stores increased only seven-tenths of 1 per cent. The five largest stores making returns are those at Cloquet, Virginia, West- brook, Willmar, and Hibbing. The Clo quet Co-operative Society had sales in 1925 of $427,931. THE NEW CENTRAL STATES CO-OPERATIVE LEAGUE May 1st was the official date for the coming into being of the Central States Co-operative League, which supersedes the old Educational Department of the Central States Co-operative Wholesale Society. The office of the new League is at 705 West Mulberry St., Bloomington, 111. 136 CO-OPERATION At the beginning there are 13 affili ated organizations and 22 individual members. A. W. Warinner, Educational Director, is still spending a large part of his time settling up the affairs of the old C. S. C. W. S. The Mutual Aid Guild is one of the most active members of the Central States League and boasts a larger membership than ever before. The officers of the new League are: Dr. G. L. Kennedy, Villa Grove, Pres. J. C. Alien, Bloomington, Vice-Pres. E. B. Zombro, Bloomington, Sec.- Treas. A. W. Warinner, Educational Director Other Directors are: J. Liukku, Wauke- gan; T. P. Testa, Taylor Springs; J. W. Shelton, Maryville; John Jay, Sparta - M. P. Murray, Riverton; Fred Wenschof, Mt. Olive. Book Reviews CO-OPERATIVE MOVEMENT IN ITALY, by E. A. Lloyd, International Publish ers, N. Y. 136 pages, price $1.75. Mr. Lloyd has written this book chiefly to show the work done by three types of co-operative societies in Italy, viz. socie ties of manual laborers, who organized their labor power only; societies of in dustrial workers who mobilized not only their labor power but who also owned and administered huge factories and mills and attempted to market their product in the open competitive field; and societies of agricultural workers who lease or own outright great tracts of farm land and work them collectively. He devotes no attention to the consumers' movement or the credit movement which are not dissimilar in Italy from the con sumers' or credit movement in other parts of Europe. By far the most unusual work has been done by these co-operative societies of manual workers who have undertaken the building of bridges, laying out of railroads, construction of municipal buildings and the making of great na tional highways entirely under the con trol of co-operative organizations demo cratically administered by the workers themselves. Almost equally interesting is the story of the reclamation of tens of thousands of acres of waste land by the co-opera tive associations of agricultural workers. These latter associations are of two types: In the North of Italy the trade unionists undertook the development of rural co-operation as a means of finding work for the unemployed city workers. In the Sotith of Italy, particularly in Sicily, the agricultural co-operative farming societies were developed by the peasants in their efforts to free them selves from the exploitation of powerful absentee landlords. As each of these two types of agricultural co-operatives be came powerful they inevitably came to blows and the warfare between them be came a political issue between the Re publican Party and the Socialist Party. The story of the precise manner in which these agricultural workers organized, the kind of work they do, is most inter esting. Mr. Lloyd's last chapter is devoted to the rise of the Fascisti and the conse quent havoc and disintegration which came to the co-operative movement. To-day, the old National League, which was politically socialistic, is completely disbanded, while the federation of Cath olic co-operatives and the federation of Ex-Service Men's co-operatives are greatly weakened. Incidentally, Mr. Lloyd gives a most interesting story of the excellent educational work done by some of the socialist co-operatives. Among the best known of these are the People's Theatre in Milan, the Popular Libraries, the Popular University, the social center, known as "Umanitaria" Society. The most interesting of all of these is "Gioiosa," a recreation center CO-OPERATION 137 outside of the city of Milan, devoted en tirely to the recreation and education of the children of co-operators. This recreation center takes care of from 300 to 400 boys and girls every Sunday throughout the summer; gives them medical attention, the best of food, instruction in various arts and crafts, as well as in swimming and other physi cal accomplishments, singing and excur sions into the mountains. It maintains a great deal of equipment: library, class rooms, swimming pools, tennis courts, equipment for studying astronomy, com plete fire brigade, and other interesting paraphernalia too numerous to mention. The same Milan federation also main tains a free tiniversity for adult workers. It is unfortunate that we find so little in this book about Rochdale co-operation; the title is misleading. There is little to be found here except trade unionism, co-partnership and syndicalism. C. L. UMKISSE EINEK GENOSSENSCHAFTLICHEN IDEENGESCHICHTE ("Historic Sketches of the Co-operative Idea"), by Dr. Henry Fancherre. Verband schweiz. Konsumvereine (V. S. K.) Basel, Switzerland, 1925. This little book of 128 pages is Part One of a series of co-operative sketches based on lectures given by Dr. Fancherre at Freidorf. The British pioneers and their ideas are here presented. The book also covers the development of the co operative idea in France, Belgium, Italy, Denmark, and Germany. These are pic tures of Dr. King, the Rochdale pioneers, Neale, Buchez, Mazzini, Raiffeisen, and V. A. Huber. It is good to find this ex cellent appreciation of Huber, who was indeed, the continental co-operative pio neer. THE CONSUMERS' CO-OPEKATIVE MOVE MENT IN GERMANY, by Dr. Theodor Cassau, Manchester, England. The Co-operative Union Limited, 1925. Price 6 shillings. This is an important book. It gives a clear picture of the German movement which is rapidly becoming the most sig nificant economic force in Germany. It deals not only with the history but also with the philosophy of the movement. The Co-operative Movement in Ger many seems to have had more thought and plan to guide it than is found in other countries where it has been largely a matter of chance. The Germans have applied their minds to the problem. Perhaps this is one reason why the Ger man movement steadily moves away from political entanglements and political methods while in many other countries the movement is more and more dragged into politics and confused with the machinations of parliamentary govern ment. It is obvious from this book that this writer is doing better thinking than is found in most countries. Their goal seems to be a democratic organization of society based upon economic, rather than political methods, and having as one of its main purposes the development of efficiency and expert services. Dr. Cassau is particularly well quali fied to write such a book because of his long connection with the Central Union as its editor and because of his studies of all phases of co-operation and its social connections. The historic intro duction is illuminating. The method of organizing and connecting societies in Germany is graphic. The relations of trade tinions and the consumers' socie ties are clearly discussed. Here we find the utter failure of Marx and Lassalle and the other early socialists to under stand co-operation which means their failure to understand the fundamentals of economics. At first there was igno rance and hostility, through confusion in their minds and compromise, through half-hearted recognition of co-operation, and finally we see the separation of the co-operators from the Socialists all go ing their respective ways. Even yet it is obvious that a Marxian Socialist does not understand co-operation. A valuable chapter is that on public opinion and consumers' co-operative so cieties. One realizes that the voice of the people is not always the voice of God. A significant statement is the last sentence in the book, which shows that the author realizes the position of leader ship which the movement has attained. "Despite its youth, the German move- 138 CO-OPERATION CO-OPERATION 139 ment is called to take the lead in the in ternational struggle for the future of the consumers' co-operative movement." TASCHEN-KALENDEE 1926 (Pocket Cal endar) Verband schweiz. Konsum- vereine (V. S. K.) Basel. This little book, which is issued yearly by the Swiss Co-operative Union, con tains statistics of the Swiss movement, and much other useful information. An article prepared by Bernhard Jaeggi gives instructions in the principles of the business of society management. This is the eighteenth year these little al manacs have appeared. DIE BNTWICKI-UNGSMNIE DBS SOCIAL- ISMUS (The Course of Development of Socialism) Von Dr. E. Wilbrandt, 1925. Verlag von Quelle u. Meyer, Leipzig. Dr. Wilbrandt is professor of national economy in the University of Tubingen and well known for his scholarly inter est in co-operation. He deals with so cialism in the broad meaning of the term. The idea of common property and com munal economic interests are discussed. "Co-operative socialism" may seem an inconsistency to Americans, but in Eu rope almost anything that people do to gether for the common good is socialism. SOME PAMPHLETS OF THE CO-OPEEATIVE UNION "The1 Collective Use of Co-operative Trading Surpluses," by T. W. Mercer, is based on notes prepared for the use of lecturers for the Men's Guilds. It discusses surplus-savings before the co operative era, and the new use of "pro fits" which the Rochdale Movement in troduced. This pamphlet is instructive and suggestive. Mr. Mercer offers some new ways in which surplus funds may be employed by co-operative societies. "The Income Tax As It Affects Co operative Societies," by E. A. Palmer, is an examination of the various sched ules under which the tax is levied in England. This is of especial British in terest, but much of the lessons of British experience and practice can be trans lated into American use. "The Men's Guild On Trial," by T. W. Mercer, is a somewhat facetious dis cussion of the usefulness or uselessness of the Men's Guild. The conclusion is that it is a good thing. "The Work of a District Organizer and Propagandist," by G. E. Griffiths, discusses this subject from the stand point of the organizer and the societies which he would advise. American co- operators will find this pamphlet rich with suggestions and help for our district advisers. "Memories of Robert Owen and the Co-operative Pioneers," by E. 0. Green ing, is a delightful series of reminis- censes of pioneers and pioneer days by a man who himself was a pioneer. There is no hint that Owen was a co-operative pioneer, for the good and sufficient rea son that he was not. J. P. W. The Correspondence File PAGE ME. FEALEY! Editor, Co-operation : In the April issue of CO-OPERATION, Mr. Edgar S. Eraley says: "If Stuart Chase or Scott Nearing or Bertrand Russell or Sidney Webb . . . have ever shown much interest in the subject (of Co-operation) I have failed to fmd it." I know little about the first three of the publicists Mr. Eraley names, but Mr. Sidney Webb has ever been a prominent and consistent advocate of Co-operation. He has addressed many important gatherings of British co-opera tors, including the Annual Congress of the Co-operative Union, and in many articles, pamphlets, and books lie has urged the claims of Co-operation upon public attention. Only three or four years ago, in collaboration with his wife, Mr. Webb published a remarkably informative work on "The Consumers' Co-op erative Movement," which states quite defi nitely that Consumers' Co-operation now offers an alternative to the present capitalist system of industry and finance. If Mr. Fraley will read this book he will, I think, be satisfied that Co-operation is not wholly neglected by "intel ligent radicals." T. W. MEECEB Co-operative Union, Manchester, England. WHEN WE ALL WAKE UP—OH! BOY! Editor, Co-operati-on: As you are aware, the large merchandising establishments in this country are depending to a large degree upon the sale of pet items for their profits. When, gradually, the public begins to realize how their money is being wasted, I believe they will appreciate more the value of establishing their own stores. The association, then, if it is in competent hands, and the members have been taught the correct principles of co-operation, will develop at a rate unprecedented in American history. C. B. BJORKMAN. Valparaiso, Indiana. SIX POINTS FOE CO-OPEEATOES Editor, Co-operation: Here are some criteria for a "first steps" co-operative organization: 1. Make it safe (that is, the kind that has usually succeeded). The following are some of the particulars of these "safe" co-operatives: 2. Simple (approximately fool-proof: do not depend on rare wisdom of the manage ment). 3. Large Savings (not fiercely competitive: the more monopolistic the better). 4. Serve a Whole County (not too local). We must act politically (though limiting ac tion to industrial matters). 5. Eequire Little Capital Per Member (to start). 6. Eequire not over 1,000 families to start. Now a store violates all these conditions. Co-operative Central Exchange Wholesale Grocers and Jobbers, Bakers We supply goods to Co-operative Societies OXXTf. AVe are owned and controlled by Co operative Societies. We are organized to enable Co-operative Societies to do collectively what they cannot do individually. Offices & Warehouses Winter Street and Ogden Avenue Bakery Plant North Fifth Street & Grand Ave. SUPERIOR, WISCONSIN THE HOME CO-OPERATOR A four-page magazine for use in co-operative societies. Issued morithly, in bundles, $1 per hundred. Published by The Co-operative League Eire insurance complies with all. Very simple. Ordinary savings are about 200 per cent in this state. Can serve a whole state. Eequires no capital at all. There should be 1000 to 5000 members, easily secured. Undertaking parlors are about the same: $2.50 for each person; 1000 families (5000 per sons) makes $12,500 capital. Can allow 500 per cent dividend. Bakeries, building and loan, credit unions, drug stores, are each vastly better than general stores. . . . W. H. KATJFMAN, BeUingham, Wash. A THANK YOU NOTE To the Co-operative League: We, the Litho Credit Union of N. Y. in whose behalf you have extended your hand of help in our trouble with the Banking De partment of New York, deeply appreciate your aid and extend you our vote of thanks. THE LITHO CREDIT UNION, E. Hanken, Sec. New York City. FEOM ONE OF THE WOMEN SUFFEAGE PIONEEES Editor CO-OPERATION: Enclosed find check for $1 to renew my subscription to CO-OPERATION. I would not be without it. ALICE STONE BLACKWELL. Boston, Mass. The Madras Monthly Bulletin of Co-operation ROYAPETTAH, MADRAS, INDIA The premier monthly on Co-operation in India. Special articles on Rural, Con sumers', Agricultural, Credit and Indus trial Co-operation; and Co-operation Abroad. Subscriptiori Rs. 4/12 per annum. The Canadian Co-operator Brantford, Ontario, Canada The organ of the Canadian Co-o^era- tive Movement, owned by and eor - ducted under the auspices of The Co-operative Union of Canada. Published monthly 75c per annum 140 CO-OPERATION PUBLICATIONS —OF— THE CO-OPERATIVE LEAGUE HISTORICAL Per Copy Per 100 $ .10 $6.00 3. Story of Co-operation ........ 7. British Co-operative Movement..... .10 3 8. Consumers' Co-operative Movement in U. S., 1926..."............... 39. Consumers* Co-operative Societies in N. Y. State (Published by Con sumers1 League ................ .10 59. Co-operative Movement in Europe.. .05 64. Progress of Co-operation in United States. ..................... .05 TECHNICAL How to Start and Run a Rochdale Co-operative Society ............ .10 System of Store Records and Accounts . . . . . . . ............ .50 A Model Constitution and By-Laws for a Co-operative Society....... ,05 Co-operative Education. Duties of Educational Committee Defined... .10 How to Start a Co-operative Whole sale . ....................... .10 Why Co-operative Stores Fail...... .02 Co-operative Store Management..... * .10 How to Start and Run a Women's Guild. ...................... .05 How to Organize a District Co-opera tive League ................... .10 Credit Union Primer (By Ham and Robinson). .................. .50 Co-operative Housing ............. ,10 A B C of Co-operative Housing.... ,10 Model Lease for Co-operative Apart ment House ................... .10 MISCELLANEOUS Model Co-op State Law............ .10 Producers' Co-operative Industries.. .10 27. 2. 14. 15. 29. 43. 50. 51. 16. 46. 11. 12. 33. 13. 34. 30. 41. 42. 53. 55. 57. 60. 62. 63. Sign or Transparency of League Em- Control of Industry by the People through the Co-operative Movement Credit Union and Co-operative Store Credit Union and Co-operative Bank The Place of Co-operation Among Other Movements .............. Co-operative Movement (Yiddish) .. " When the Whistle Blew " (Story, by Bruce Calvert) .............. Social Aspects of Farmers' Co-opera tive Marketing (By Benson Y. Landis). . . . . . . .............. Co-op Homes for Europe's Homeless Real First Aid for the Farmers.... A Better World to Live In........ .05 How a Consumers' Co-operative Dif fers from Ordinary Business.... .02 The " Moral Equivalent " of Jazz... Buttons (League Emblem in 3 colors^ 54 inch diameter .10 .05 .05 .25 .02 .06 .25 .10 .05 .02 6.00 4.00 4.00 2.50 1.00 1.75 1.25 3.00 ign or Transparency ot League lj,m- blem. Green and gold, 8 in. diam.. .25 15.00 ONE-PAGE LEAFLETS (One Cent each; 50 Cents per 100; $2.50 per 500; $4.00 per 1,000.) (1) Principles and Aims of The Co-operative League; (18) 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 Move ment?; (45) Schools and Stores; (47) A Man's Right to a Job; (48) Tips to Co-operators; (49) The Way Out; (61) Co-operation Brings Disarmament. MONTHLY PUBLICATIONS CO-OPERATION—(In bundle lots, $7.50 per hun dred). Subscription, per year............. .$1.00 HOME CO-OPERATOR, 4 pages...... .$1.00 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 Move ment. They may be ordered through The League: Bergengren, Roy F.: Co-operative Banking, A Credit Union Book ..................... $3.00 Blanc, Elsie T.: Co-operative Movement in Russia . . . . . . . ....................... 2.50 Brightwill, L. R.: Animal "Co-op" Book—For Children............................ .15 Faber, Harald: Co-operation in Danish Agricul ture, 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 American edition and notes, 1922. Cloth, $2.00; paper bound ..................... .90 Hall, Prof. Fred: Handbook for Members of Co operative Committees ................... 2.00 Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Paper bound........ .60 Holyoake: Rochdale Pioneers ................ 1.00 Howe, Fred C.: Denmark, a Co-operative Com monwealth, 1921 ....................... 2.00 Jessness, O. B.: Co-operative Marketing of Farm Products ......................... 2.50 Madams, J. P.: The Story Retold............ .50 Nicholson, Isa: Our Story................... .25 Owen, Robert: Autobiography .............. .50 Potter, B.: Co-operative Movement in Great Britain . . . . . . . ....................... 1.00 Redfern, Percy: The Story of the C. W. S..... 2.00 Redfern, Percy: The Consumers' Place in So ciety, 1920 ............................. 1.00 Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918 ........................ 1.00 Smith-Gordon and O'Brien: Co-operation in Denmark. . . . . . . .................... 1.00 Smith-Gordon and O'Brien: Co-operation in Many Lands, 1920 ..................... 1.50 Stolinsky, A.: The Co-operative Movement. (In Yiddish). . . . . . . ...................... 1.00 Warbasse, James P.: Co-operative Democracy.. 2.50 Webb, B. and S.: The Consumers' Co-operative Movement, 1921. Board, $2.00; cloth..... 5.00 Webb, Catherine: Industrial Co-operation, 1917. 1.50 Woolf, Leonard: Co-operation and the Future of Industry ............................ 1.00 Woolf, L.: Socialism and Co-operation........ 1.50 Co-operation in Great Britain and Ireland, paper .25 CO-OPERATION, Bound Volumes, 1915 to 1925 inclusive, each ......................... 1.25 Transactions of Second American Co-operative Congress, 1920 ......................... 1.00 Transactions of Third American Co-operative Congress, 1922 ...1..................... 1.00 Transactions of Fourth American Co-operative Congress, 1924 ......................... 1.00 Northern States Year Book, 1925. Paper..... .20 The People's Year Book, 1926. Cloth, $1.00; paper bound ........................... .60 (Ten cents postage should be added for books which cost more than $2.00, and five cents for the smaller books.) L A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in voluntary association, produce and distribute for their own use the things they need. Published Monthly by THE CO-OPERATIVE LEAGUE 167 West 12th Street, New York City J. P. WARBASSE, Editor Entered as Second Class matter, December 19, 1917, at the Post Office at New York, N. Y., under the Act of March 3, 1879. Price $1.00 a year. VOL. XII, No. 8 AUGUST, 1926 10 CENTS \ MAIN STOEE BUILDING OF THE CLOQUET CO-OPEEATIVE—This is a pretty large co-operative building for a town of only 8,000 souls. And it doesn't tell the whole story, either, for there is a branch store at the other side of the town. The main industries of Cloguet are sawmills, a tootlipiflc factory, a box factory, and a very large paper mill. Outside the city there are many small farmers. About 10 pe? cent of the population is Finnish, and it is these folks who started this co-operative 16 years ago. After they had carried the heavy organization work and done the pioneering, people of other nationality groups came in to get some of the benefits of tlie successful business. 142 CO-OPERATION CO-OPERATION 143 ; 1,000 Co-operators at Cloquet Cloquet (pronounced Klokay), Minnesota, has the largest co-operative store society in the North Central States. The history of its development is very much the history of the development of most of the successful co-operatives of that part of the country. Until 1910 there was no co-operative in this little city, though the farmers had a store organized on a joint-stock basis which was far from successful. In 1910, 121 of the Finnish workers got together and raised $1,992. The farmers of the neighborhood had had enough of what they called "co-operation" and would not come in. Most of the townspeople were equally pessimistic, and it was 1915 before the first non-Finnish resident became a member of the society. In 1918 one of the devastating forest fires, so common to that part of the country, swept down upon the city and wiped out all the buildings, including that of the co-operative, with most of the books belonging to the society. It took genuine courage to rebuild and to start in business again after everything had been lost. But this time there was more confidence in co-operation, and from the beginning the workers of other nationalities joined with the Finns. In 1921 the original Cloquet Stock Mercantile Company reorganized as the Cloquet Co-operative Society and raised its authorized capitalization from $10,000 to $75,000. Meanwhile there had been persistent agitation on the part of a few members of the society and a few members of the Knife Falls Co-opera tive Association, situated only a mile away, for amalgamation. By 1923 there was sufficient support for the proposition in both societies to carry it through. At this time the larger Cloquet Co-operative Society had a membership of 560 and an annual income from sales of $265,750, while the Knife Falls Association had only 178 members and an annual income of $115,000. The chief credit for carrying the proposal must go to the 50 or more members of the Knife Falls store who were at the same time members of the larger society. Thirty-eight members of the former vigorously opposed the union and demanded their money back when the motion was finally carried. Thus the Cloquet Society gained 110 new members through the amalgamation. Co-operators elsewhere who have become discouraged because they find it difficult to unite co-operative stores may find consolation in the fact that it took six years to accomplish this apparently simple feat at Cloquet. To-day there are almost 1,000 members of the Cloquet Co-operative Society, representing all nationalities and all walks of life. Thirty-four per cent of the membership is American or other non-Finnish people; 66 per cent is Finnish; and the same proportion exists for the relation of farmers to wage earners, the latter being in the majority. The business has grown by leaps and bounds until, in 1926, goods are being sold at the rate of $37,000 per month. The attached table shows how this hill-climb took place from year to year. Year 1915 1916 1917 1918 1919 1920 1921 1922 1923 1924 1925 June, 1926 Members 169 177 194 250 255 275 350 428 559 679 819 961 Share Capital $2,500 2,885 491 3,570 3,810 4,850 8,866 17,310 31,270 39,000 Undivided Surplus $1.60 3,196 1,042 2,900 4,534 7,191 17,114 27,457 25,901 33,560 Net Sales $34,916 41,173 73,479 126,935 198,233 183,115 169,198 211,472 265,757 366,064 429,931 222,052 Net Gain $78 828 1,837 1,042 2,285 1,713 3,782 6,670 9,864 12,862 16,207 Rebated $1,042 4,630 1,848 3,130 9,269 9,305 10,652 15,389 r .-fc I- !- &-»«.r INTEBIOB OF THE MAIN STOEE—These are the co-operative workers in the main store of the Cloquet Society. But the goods they handle are not just plain groceries. A very large part of them are goods purchased, from the Co-operative Wholesale at Superior. In fact, in 1925 this society purchased from its own wholesale more than twice as much as its1 nearest competitor, or a total of almost $86,000 of goods. The Cloquet Society is one of the few societies which holds direct affiliation both with the Northern States Co-operative League and also with the Co-operative Central Exchange (wholesale). It is one of the heaviest supporters of the Wholesale, as the following schedule of purchases from the C. C. E. proves: Purchases by the Cloquet Society from the Exchange 1919................................. $22,419 1920................................. 16,807 1921................................. 19,491 1922................................. 22,293 1923................................. $29,146 1924................................. 55,352 1025................................. 85,969 As for the educational work carried on by these co-operators, we can best let the efficient manager, Peter Kokkonen, speak. This man has been in charge of the business since 1919 and should know what he is talking about .- '' Educational work among the members of the Cloquet Co-operative Society has been carried on very effectively right from the beginning. Men and women have many times discussed the problems of their own store and have tried to make it more successful. The members have furthermore followed very closely the methods of the most successful co-operative stores of this country and Finland. Co-operative bulletins and monthly magazines, both in Finnish and in English, have been subscribed to by the members. Educational entertainments are held for the members about twice a year. There are many ways of carrying on educa tional work in the co-operative arena. Our members realize that the co-operative store cannot live and succeed if its ideas are reduced only to the thought of 'store.' The labor and co-operative movements should go hand in hand and then both will be successful." 144 CO-OPERATION CO-OPERATION 145 Vital Issues k SUCCESS TURNED TO FAILURE The Co-operative Movement in the United States is confronted by a pecu liar danger. This danger was first ob served in California many years ago. A number of consumers' societies became so successful that their assets had in creased several times over their original capital. The members saw from their annual reports that their stock was really worth several times what they had paid for it. They voted to sell out and put the money in their pockets. This is happening to-day in co-opera tive housing. The people in a housing society find that their building has greatly increased in value since they started. They yield to the temptation to sell out and pocket the profits; or they sublet apartments to non-members at a profit and live somewhere else. We know of one individual now who has a clear profit of $1,500 a year from sub- Jetting apartments that were once started as co-operative housing enterprises. We know of another individual who has just refused an offer of $11,000 for his shares and lease which cost him $2,100, less than five years ago. This sort of thing is playing havoc with co-operative housing. Its success is its weakness. The farmers' co-operative telephone societies in the West are proving highly successful. A society organizes, gets going, and proves economical and satis factory. Along comes the American Bell Telephone Company and offers them $2 for every $1 of shares they have. The matter comes up in a members' meeting. The burden of organization and carry ing on the work has fallen upon a few men; at the meeting the people who are strong for selling out are those who have not done the work and made the society a success, but they are the indifferent members who have done nothing but join and put in a little money. Now it appears that these drones of investors are in the majority. A representative of the Bell system is present and tells them all the wonderful things the Bell Company will do for them. A motion is made, the vote is called for, and the co operative sells out. Its prosperity killed it. An exceptional case occurred last year in Washington, when the Farmers' Mu tual Telephone Company of Whatcom County actually succeeded in resisting the efforts of the Bell system to buy it out. This is a noteworthy case because the society is very prosperous, the Bell offer (and pressure) was high, and, had they sold out each member would have put a nice profit in his pocket. But these farmers knew that co-operation not only pays but continues to pay, and that if it was a good thing for them in the past it can be made to continue a good thing in the future. That is what they are doing. They knew also that if they sold out the prices of telephone service would be jumped up. They had the in formation from other places where it had been doubled and then gradually increased several times. They stood firm and refused the bait. The solution is not that co-operative societies shall strive to avoid success, but that gaining success, they shall keep it. J. P. W. ! ALL CLASSES ARE IN CO-OPERATIVE SOCIETIES The Co-operative Movement was once thought of as a class movement. Now after nearly a hundred years of develop ment it demonstrates more than ever that it reaches out after all people who are consumers irrespective of class. The International Labor Office has published statistics showing the occupa tions of members of co-operative socie ties. This is made possible by the fact that many societies compile statistics of this sort. In most countries the largest per centage of membership by far is among farmers. It is curious that in Bulgaria the next largest group is officials and political employees, then come handi craftsmen and manufacturers, then- tradesmen, and then work people. II Finland shows 49 per cent farmers, 32 per cent industrial workers, and 12 per cent government employees and business men. Latvia has 36 per cent farmers, 27 per cent intellectual workers, and 10 per cent industrial workers. In Sweden, the number of farmers who are members of consumers' societies has increased sixfold during the past twelve years. The membership of socie ties shows 17 per cent farmers, 9 per cent officials,' and 58 per cent industrial workers. The membership of consumers' socie ties connected with the German Central Union is made up of 78 per cent indus trial wage earners, 8 per cent no occupa tion (pensioners and unemployed and bourgeoisie), 6 per cent manufacturers, 4 per cent farmers and 4 per cent pro fessions and government employees. The German farmers are mostly in other co-operative organizations. In the countries with a well developed co-operative movement, the wage-work ing class seem to be almost completely absorbed in the movement. In Germany, for example, practically all of the work ing people who are available have joined the co-operative societies. As the move ment grows, its further expansion must be more and more in the circles of the middle class and finally among the well- to-do and leisure class. This latter con dition is now to be seen in Stockholm, Sweden, where the local society has taken into its membership all of the available wage-working people, and is now going for members among the well-to-do citi zens. Beginning with stores in the poorer section of the city, the society has grown to 30,000 members with stores in every place where working people live, and now it is seen establishing its new stores in the "high-toned" neighbor hoods and even in the suburbs where the bourgeoisie live. Co-operation, beginning with the work ers, seems to expand indefinitely without regard to classes. It is the one move ment that can unite all classes into a society of mutual interests. J. P, W. PUNISHING THE BAD CO-OPERATORS Lately we see the farmers' marketing associations resorting to various devices to strengthen their hold upon their mem bership and upon the market. In other countries they have begun to experiment with the idea of forcing the non-co-operator to sell through the marketing association, if 75 per cent of all the producers of the one commodity support the association. They accom plish this enforcement decree by legisla tion. Then we are reminded of the fruit growers in California who formed raid ing parties, dragged some of their fellow growers down to the nearest pond and treated them to a real ducking as an inducement to signing the agreement to sell only through the Association. More recently we learn that the Sun Maid Eaisin Growers are refusing to take in new members except on the endorse ment of three old members. Down in Texas the Cotton Association is quietly skipping some of the "less desirable" farmers, and signing up only the "good and loyal" fellows. And another large commodity organization punishes the member who drops out before expiration of his contract, by refusing to sign him up again or market his produce until two years have elapsed. All this kind of "persuasion" is an old and familiar story to Americans. "If your neighbor doesn't do what you want him to do, teach him with a club." "If the Mexican doesn't obey the Yankee, eddicate him with a rifle and a bayonet." But these methods are far afield from the old and tried and true co-operative methods. Education of the mind and heart is the only road to co-operative progress. Before we resort to the weap ons of the militarist, the lynching party, and the bully, we had better give up Co-operation entirely. Intimidation and violence makes neither co-operators nor a co-operative movement. C. L. 146 CO-OPERATION What is the Relation of Producers and Con sumers in the Co-operative Movement* PEOM THE VIEWPOINT OF THE LABOE LEADER By JOHN H. WALKER President, Illinois State Federation of Labor (Continued from July number') (1) Can the worker get all the eco nomic advantages he needs through union activity? Not as at present understood. (2) Can he get all that he needs through membership in a consumers' co operative alone? With a little change in the phraseol ogy, the answer to the first question would answer the second question as well. (3) Can the labor unions themselves administer 'co-operative societies or should the workers, as consumers, main tain absolute independence for their co operative organizations? Under present circumstances, in my opinion (and that opinion has been formed as a result of some experience in dealing with this question) the trade unionist will make the best co-operator. I believe that a worker who is eligible to join a trade union movement and who within reason could belong to it and does not, is either not well informed, or not very intelligent, or both. At the same time, there are many men in the unions who don't understand co-operation and who therefore feel no direct interest in it. Situated as we are, a co-operative society should be controlled by its own members. At the same time, it should work in the friendliest sort of co-opera tion with the trade union movement in every way possible and vice versa. I believe the trade union movement should * This is the second, installment of Mr. Walker's article. Other articles on the same general subject have been from the viewpoint of the Social Scientist, the Labor Banker, the Urban Co-operator, the Labor Educator, the Farmer, and the Student of Agriculture. be controlled by its own members—the co-operative movement should keep out, except to act in the most friendly way, supporting them in what they are striv ing to do. (4) How much practical aid can co operatives give to the strengthening of the position of organized industries and union-made goods? and (5) Conversely, what aid can the unions extend to the support of co-oper ative institutions? Substantial and practical aid can be given by co-operatives to the trade union movement, and to the greater sale, and consequent production of union-made goods. Whatever of saving the co-opera tives make for them, enables the trade unionists to have that much greater op portunities in life to supply themselves with the material things, as well as with education. The greater knowledge he acquires as a result of becoming an in formed co-operator enables the trade unionist to avoid making mistakes that he might otherwise make, and to use his influence in a more intelligent and effec tive manner. The saving that is made in the co-operative societies strengthens the trade unionist in the event he is forced into a dispute with his employer. His connections with banking, merchan dising, etc., give him greater influence with which to aid the unions, when the co-operative movement has developed far enough. If necessary it can perhaps supplant the private corporation with whom the trade unionists are in dispute by a co-operative industry. Trade unionists can be of immense benefit to co-operative institutions. They can furnish them with men and women, trained in the struggle of humanity CO-OPERATION 147 which is perhaps the greatest asset of a real co-operative movement. They can use their trade unions for publicity and legislative purposes, and the individual members can assist financially. Some times the trade unions themselves can safely assist financially. (6) What is our answer to the type of radical who frowns upon the workers' co-operative because he considers it a type of petty capitalism which makes workers employ petty tosses over other workers? The type of radical (impossibilist) referred to, is either uninformed, or so limited mentally, that he is hopeless, or he is a stool pigeon for labor's enemies. The former should be reached with the facts. The second we must put up with and do the best we can for him; but the co-operative movement and the trade unions are better off with him outside, and I know the evil of having him out side. The last type we must fight intel ligently all the time. (7) How much can the co-operative raise the standards of living for em ployes in their own store? And how much can it do to promote the organiza tion of their employees? The co-operative can raise the stan dards of living for the employees in its own store by granting a little better wages, hours, conditions and treatment; but a co-operative movement should not be expected when it is in a struggle for its life in a practical situation, to deal with its employees on an ideal basis—it should do what can be done within rea son, and ordinarily that is much better than a similar private institution with which it is in competition will do. Later when it is thoroughly established and is safe financially, it will be able to deal with its employees on practically an ideal basis. A co-operative society should let its employees know that it is not opposed to their organizing into a trade union. If the employees do not then organize, I think that ought to be proof enough to the co-operative society that they are unintelligent and therefore incompetent, and that they should in all reason be discontinued as employees of such an institution. (8) Should the workers go into pro duction directly with producers' fac tories, or should they work by way of the Rochdale method—organizing the consumers first and working back to ward wholesale and industries owned by wholesales? The workers in modern industries, should, in my judgment, organize a con sumers' movement first; then when they have enough retail stores to make a wholesale store successful, start their wholesale under an agreement that would require each retail to do its full duty towards its own wholesale; then when there is enough of a movement built up to create a guaranteed demand for a sufficient amount of any product, to make a success of the operation of a factory supplying it, they should go into manufacturing. They should not start a factory or wholesale until they have sufficient need for its services guaran teed, to assure its success financially. Co-operative Contrasts By M. W. CHEBL (A month's transcontinental trip, in which the writer visits City and Rural Co-operatwe Stores, Creameries, A Grange Convention, and Women's Auxiliaries of the Farmers' Co-operatwe Union.') "What is the best kind of a con sumers' co-operative society in the United States ?'' was the question asked me many times on this, my seventh trip across the country. The answer I gave was always, "There is no choice. It depends entirely on the local need." But I have come to the conclusion that co-operative grocery stores in cities without some productive activity such as a co-operative bakery, dairy, cream ery, restaurant, or credit union, etc., 148 CO-OPERATION have very little chance to survive. Com paring the co-operative stores, East, West and North, the same holds true: wherever the small society which started out with a grocery store has been able soon to enlarge its capital so as to equip a plant for baking bread as at Sault Ste Marie, Midi., or for a dairy as at Wauke- gan, 111., or for a coal and ice plant as at Villa Grove, 111., there we find the grocery stores also prospering. Starting from California northward, my first stop was at Woodland, Wash ington. Five years ago I found in this country town two co-operative stores, both rather weak and struggling. Now there is one very prosperous general store whose members are both American and Finnish farmers called Farmers' Co-operative Trading Co. It has for president a Russian co-operator and for manager a Finnish student from the Co-operative Training School of Supe rior, Wis. A few years ago some hostility existed between the nationalities. To-day that has disappeared. A co-operative cream ery managed by the president of the co-op store, with a dozen very fine young men as employees teaches the farmers the value of pooling their products, and their co-operative store which supplies every possible need ought to make them all 100 per cent co-operators. As a harmonizer the co-operative movement in Woodland is of utmost importance because the farmers are beginning to realize that their economic interests are the same, and differences of religion, customs, and politics are taking their secondary place in the united effort necessary to make their economic posi tion secure. If only this understanding could prevail everywhere and the foolish misunderstandings and jealousies be tween individuals could be swept away, the co-operative movement would ad vance so much more rapidly. The Grange Convention At Kennewick, Wash., over a thousand delegates from the state gathered in an all week meeting. Tents and hotels were crowded, some groups brought their own cooking equipment and their bands kept the air ringing from 7 A.M. till night. Meetings were held in church, on the street, in the co-op store, in the fields under the trees, and everybody was gay. The first day was given over entirely to the co-operative movement. Problems of the stores, the wholesale, the insur ance department, were thoroughly dis cussed. Sixty stores are scattered throughout the state, mostly in the western part. The two largest are at Kent and Issaquah. Another typical smaller, but very progressive store, is located at Redmond. (These will be told of in detail in the September num ber of CO-OPERATION, with a description of the activities of the Wholesale at Seattle.) At an after-meeting a group of women remained to learn how to in terest the women in the co-operative stores. From this little group we hope some guilds may be organized, for every body agreed that until the women are more interested and loyal the stores will not grow much, since women do most of the buying. i ! At Minneapolis, Minn. The Franklin Co-operative Creamery continues to expand, and now has nearly 6,000 stockholders and 176 autos and wagons distributing milk to all parts of the city. The facts and figures have been given many times in our pages so it is not necessary to repeat. One of the latest developments is the Health Clinic. A nurse at full time, and a doctor two days a week are employed to examine and care for the children of the members, and users of Franklin products. Com munity meetings are held two or three times a month, when the motion pictures of the workings of the Creamery are shown, an address on Co-operation is made and ice cream cones are distributed gratis. This sort of ad vertising and educational propaganda all over the city in churches, lodges, in the parks, etc., cannot be over-estimated. The Women's Guild held a delightful luncheon in honor of the Fifth Birthday Anniversary of the Guild, at which I was asked to cut the cake. The member ship is now 150. The Guild has held bazaars, parties, and many educational meetings during the past five years. CO-OPERATION 149 This fall it is planned to make a study of some Co-operative Book. Then there is the wonderful Franklin Male Chorus, and Franklin Band, often called upon for concert work not only in the city but throughout the state. This, the largest and most talked-of Co-operative Associa tion in the country, is inspiring to visit. The President, Board of Directors and employees will show you with great pride and courtesy their fine plants, the audi torium, clinics, restaurant and offices. Minneapolis has several other smaller co-operatives. A newly organized res taurant of 65 members is just starting. The Associated Textiles, an organization selling workingmen's clothing, sends out 100 salesmen to take orders, and sells to the public from a large loft in one of the office buildings in the city. Last year $32,000 was rebated to consumers in the form of merchandise checks, and the prices on the goods are lower than the average. i In Iowa In the state of Iowa, the Farmers' Union conducts a Co-operative Service Dept. from Des Moines, which in the past six months has sold $250,000 worth of goods to farmers, saving on binder twine alone more than $20,000. They handle flour, feed, coal, salt, oil, farm machinery, etc. Membership fees are $5, and patronage dividends are paid. I met a number of women interested in organizing auxiliaries for the study of Co-operation and to buy from this De partment. The present organizer is a very capable woman who is called upon often to address meetings and organize the women. The Union will be greatly helped by this work, for the women must understand the problems of the Union, and be interested in working with and not against the Co-operative Movement. Meetings were held at Ottumwa and Sigourney, and the women present dis played a keen interest and intelligence in the work before them. Illinois Waukegan and Rockford, two medium sized cities in the northern part of Illi nois, have co-operative grocery stores supported by the labor groups. Rock- ford was organized in 1920, and Wauke gan in 1911. The former remains prac tically the same since 1922, with about 200 members and a business around $50,000. The Waukegan society has opened a branch store, has a thousand members to-day, and does a business of half a million. But the difference lies in the fact that a Dairy was started, first in a small way, distributing milk right in store itself from cans. Soon they had an up-to-date pasteurizing plant, butter and cream department in their own new buildings, and from that time the grocery and meat business grew rapidly. These societies visit each other once a year and hold picnics together, educa tional programs are planned often, and a great deal of Co-operative literature is distributed. The Rockford society has a good Women's Guild, which the directors claim, has been the main sup port of the store. Ohio Ohio has been noted for its Railroad Co-operatives. At Dennison I found one that was started four years ago, man aged by the same English Co-operator, with the same Board of Directors, all quite happy and proud of the slow but steady improvement they had made, in spite of keen chain store competition, and only about half the support of the women folks. They have a nice delivery wagon with the League's emblem "The Two Pine-trees" and the motto "Each for All and All for Each" gaily painted on it. One of their problems is giving more credit than is good for the store. A little real education along this line and a renewal of interest and help from the women would make this a 100 per cent little Co-op, that could easily start some other activity and expand as well as Waukegan has done. With the exception of the Franklin Creamery, these societies are quite typi cal of the many hundreds to be found in the Middle West, North and West. In each group there are progressive leaders, with plenty of faith in the Co operative idea, undiscouraged, and work ing to the best of their ability to keep the Co-operative Movement growing. 150 CO-OPERATION I Go a Lecturing By J. P. W. Everybody gets lectured more or less, but next to children with parents who have bestowed upon their offspring a deficient heritage of good conduct, no body suffers more lecturing than college students. For them there is no escape, because they must submit to periodic examinations to prove that they have kept awake and heard what was said. Having been lectured within an inch of my life, in the dim past, as a student, and having gained experience as pa rental lecturer and story-teller (which amounts to pretty much the same thing), in my own domestic university, I have felt myself equipped to sally forth, on occasions, to the academic shades of our American colleges, with the glad tidings of an enlightening interpretation of eco nomic life. I am not a very good lecturer. I have the feeling that I have presented the subject inadequately and that I have failed to make it sufficiently graphic and vital. And then I always have the feel ing that I am the one who is getting the education. This gives me a sense of cheating the students. Of course the professor tells me that the students get a lot out of it—"fine," "just what we needed," and all that sort of thing—but no prof, ever told me the downright, honor-bright truth about what he thought of one of my lectures. I do not mean by that that he is afraid to speak the truth; his reticence arises from the fact that he is a gentleman as well as a scholar. I returned home from a tour of New England colleges about the first of May. Now, in the quiet of my study, I reflect upon my adventures. The size of this country and the vari ety of climate always impress one who travels. I left the daffodils gaily bloom ing in the balmy spring air of my garden in New York and the next day travelled a hundred miles to reach Orono, Maine, through a country still blanketed in the snow of the past winter. Prof. Taylor of the chair of Philosophy, at the Uni versity of Maine, explained his slight limp by informing me that he got it by a miss-turn skiing the day before. This on April 20. I arrived at 4:25 p. m. and found my audience waiting and ready at 4:30. A hall full of young, eager, questioning students. The best of the qualities that I discover in the American college student is his skepti cism. I think the bunko games of the war helped most to give him this quality. The President, the profs, and the par sons all fooled him. He does not want to be fooled again. He is on his guard. The evil spirits of the war have had their heyday and their riot; the virtues will yet reap the harvest. The dinner at the fraternity house with Prof. Ashworth and his advanced students in economics was the best. We got down to business and discussed fundamentals to the profit of all of us. Bowdoin College is not as well known as it should be. It is an admirable old institution, rich with the traditions of the student days of Longfellow, Haw thorne, and many men eminent in politics and scholarship. Its library is superb. Among the magazines on file in the read ing room are The Nation and Mer cury. In the department of economics one sees the significant books on Co operation and the complete files of the magazine CO-OPERATION, all used and studied. Prof. Catlin of Bowdoin has just finished writing a book on "Labor Problems.'' I have had the privilege of reading the manuscript of his chapter on Co-operation. It is by far the best chap ter on this subject written by any Amer ican professor of economics. His understanding of co-operation is extraor dinary for a man whose field is academic research. I lectured to his class in economics and had a session with a spe cial group. Prof. Catlin is giving these students teaching that goes a long way toward building their culture. Lunch eon at the home of Prof, and Mrs. Gush ing, with the president, the dean, and their wives, Catlin and myself, was a lovely party. CO-OPERATION 151 At Mount Holyoke we had an evening session—Prof. Hewes and her students of labor problems. Mount Holyoke is good to its guests. In the morning I expressed my appreciation by writing in the guest book which records names lost in the misty past "to which the mem ory of man runneth not." To speak formally in chapel was interesting for variety's sake. Smith College, at Northampton, is an old and conservative institution. That the world moves is illustrated by the fact that its two professors of history—Fay and Barnes—are freely writing and teaching that, the facts show that Ger many did not start the Great War, but that France and old Czarist Eussia were the chief instigators of that dreadful crime. Prof. Orton, of the chair of economics at Smith, has a live and interested class. He came to Smith from the Workers' Educational Association of England. He held office in the Labor Government of Ramsay McDonald. Another class before which I spoke proved to be Bible students; their interest in Co-operation seemed to be emotional rather than sci entific. It was good to meet Prof. Har- low with his unbounded zeal for social justice. A quarter after eight o'clock in the morning is the way they begin working lecturers at Amherst. Prof. Taylor, in economics, succeeds in having an audi torium full of students at that hour. In the evening a meeting with the Liberal Club was so exclusive that members of the faculty are not admitted. Here was a group of fellows who want to come to grips with fundamental facts. When I asked them if they realized that a Lib eral Club was always in danger of be coming a radical club, they said, "Let it come." I have had considerable experience presenting Co-operation to religious groups. On the whole, they are the least worth while of any. I had this feeling when I went to Boston University Theo logical School. This is the largest Meth odist divinity school in the world. I was prepared to find that the students wanted emotion, sentiment, and ethical gush. I had feared they would not be interested, because I had never gone to jail for the sake of Co-operation or because I did not tell them how it feeds the shrunken faces of hungry little children. But to my astonishment they wanted economic facts and their scientific interpretation. And what is more, they understood them. It is gratifying to find theology getting its feet on the ground. Perhaps it will not get so many people thinking they are started for heaven, but there will be more who will want to find out where it is. Prof. Vaughan is the successor of Harry Ward. Both of them are among the college teachers who understand Co operation. The lecture at Harvard in the Depart ment of Social Ethics was attended by an interested lot of students; and an hour afterwards spent with Prof. Ham was most profitable. At the luncheon meeting at the Harvard Liberal Club we went to the root of things,—thoughtful students. One fellow working for his Ph.D. in the history of labor, knew his subject from early slave times down to the most progressive trade unionism. It is interesting to meet a man who knows how little trade unionism alone really can do for the workers and who knows that some of the most cultured and the wealthiest men in ancient Greece were chattel slaves. Simmons College has practical minded girls. They are after a useful education and seem willing to work for it. The lec ture hall was crowded. A session after wards with a group of advanced stu dents, who had been inspired by Pro fessor Stites with a special interest in economics, showed keen and eager minds. Wellesley is an institution which is doing great work. The grounds, the equipment, and the fine spirit among the students and teachers is inspiring. Prof. Mussey and Prof. Donnan, with their several associates in economics, are grr- ing the students a broad culture. Here radical doctrines are actually taught in an impartial way, avoiding both unwar ranted criticism and propaganda. Not one of the girls in that lecture room failed to be interested. This indicates background. If Co-operation is pre sented to students who are without un derstanding of the fundamentals of 152 CO-OPERATION economics a certain percentage are list less and distracted. Here were two hundred students all keenly following the idea. At Yale, Prof. Furniss had a class room filled with two or three hundred young men who were eager for informa tion, and interested. As one stands in their presence, he is bound to be im pressed by their potency and by the realization of the important parts in the life of this country .they are destined to take. In all of these lectures, excepting when at chapel, from fifteen minutes to an hour was reserved for questions. In this period one gets the best idea of the un derstanding of the group. Here the pulse of the students is felt. This discus sion period is apt to be more profitable and provocative of thought than the lecture. The questions were always intelligent, often searching. I can say that in this series of lectures not one foolish ques tion was asked; and that is more than I can say of the questions following lec tures I have given in public forums, churches, business men's clubs, or trade unions. There is a tradition that students are not in college for purposes of education and culture. I am persuaded more and more that the opportunities for educa tion in the colleges are very great, that the proportion of students who are in college for that purpose is large, and that our colleges are graduating many men and women who are destined to become the leaders in both thought and action in the changing drama of eco nomic life in the United States. The leaders in the field of radical ism, as well as conservatism, are being trained in the colleges. Any radical doctrine that would make headway in this country must be taught and studied in the colleges, and it must find accept ance among the students as a rational as well as practical program. Foreign INTERNATIONAL CO-OPERATIVE WOMEN'S GUILD Character of the International Co operative Women's Guild The International Co-operative Wo men's Guild stands for the organized women of the International Co-operative Movement. Founded four and a half years ago it now embraces ten national organizations in Austria, Belgium, France, England, Holland, Ireland, Norway, Scotland, Sweden, Switzerland; it has consultative members in Germany, Czechoslovakia, the U. S. S. R., the U. S. A. and Japan; it is in contact with the co-operative women of Canada, Austra lia, New Zealand and South Africa, and has connections also with several other countries. It is at present the only in ternational organization of working women. .The many millions of women com prised in the co-operative movement of the world are almost all married work ing women, and the International Guild therefore represents not wage-earning women, but women in the home, who con stitute so large a section of every com munity and are a growing political force in almost every nation. The common in terests of the wage-spender and the com mon bond of motherhood have drawn these women together nationally and in ternationally for the expression of their common needs. On no question is the strength of this common feeling more striking than on that of world peace and disarmament. Coming as a fresh force into the political world the mothers for whom we speak bring to this problem a directness of vision almost impossible to those ham pered by diplomatic and military tradi tion. They see the young life they have given to the world, they see the vast ma chine built up for its destruction, they CO-OPEEATION 153 see the degradation that war entails and the futility of its sacrifices, and they are determined that the madness of organ ized murder can and must be ended. The Need for Total Disarmament We wish therefore to say at the outset that in our view the time has gone by for treating the question of disarma ments as a matter of diplomacy, of poli tical expediency or of the balancing of military considerations. It is a question to-day of life or death for humanity. Statesmen and soldiers alike admit as individuals that if mankind cannot abol ish war—and abolish it quickly—war will destroy mankind. We believe it to be impossible to abolish war while arma ments remain. To argue that there can be no disarmament without security is an inversion of the facts. There can be no security except in disarmament. Our reasons for this view are: 1. That Armaments Have Ceased to be a Protection and Have Become a Dan ger.—Far from affording security to the nations, armaments are in themselves a potent factor in international insecurity. The outbreak of the Great War in 1914 in a world more fully armed than at any time in its history is itself a proof that armaments give no security. With the development of weapons of offense against which defensive measures are practically impossible, there is no longer any such thing as defensive war fare and the only method of conducting a defensive war is to be first in taking the offensive. . . . 2. Psychologically it is Impossible to Obtain Security in a World of Armed Nations.—Armaments are an expression of fear and distrust and they keep ever present to the minds of Governments, and through them to the public mind, the idea of war. . . . 3. The Gvoiuth of Scientific Invention Has Rendered Partial Disarmament Fu tile.—The Great War lasted four years and cost in lives lost in battle 13,000,000 besides a further 13,000,000 civilians who died as a result of war conditions. The next war may take this toll of life in a few days, not only on the battlefield, but among the non-combatant women and children. . . . We would therefore beg of you to di rect your attention not to the reduction of armies here and navies there, to the limitation of air forces, and the further regulation of chemical war, but to the steps which can be taken by all nations in common to free the world altogether from the curse of armaments in the short est possible time. The Transition Period and Immediate Problems . . . The Convention already adopted for the Control of the Traffic in Arms is an important step, but far larger meas ures are necessary. We would, therefore, urge that the Conference should direct its attention to securing common action by all participating nations on the fol lowing lines:— 1. The Simultaneous Reduction of Armaments by all Participating Nations at Such a Rate as Will Bring About Complete Disarmament at the End of Ten Years, the rate for all nations being the same percentage of their present to tal armed strength, as far as possible, equally distributed over its different branches. ... 2. The Prohibition in the Meantime of the Private Manufacture of Arms and the taking over of all armament produc tion by the Governments. . . . 3. The Prevention of Economic Dis location and Unemployment.—These measures would have to be carefully worked out in connection with the eco nomic circumstances of each country and to take account of the alternative advan tages of remission of taxation as against Government expenditure in the indus tries concerned. . . . 4. A Simultaneous Educational Cam paign by All Participating Nations to Bring Before the Public the Necessity of Disarmament. Hitherto the whole educational and publicity machine of the various nations has been used conscious ly or unconsciously to uphold war and military institutions. When the Great War of 1914 broke out every means that could be used for propaganda purposes was seized upon by governments to in fluence the public imagination in favor of the war. It is not difficult for a Gov- 154 CO-OPERATION CO-OPERATION 155 eminent to educate the public opinion of its people. What can be done for war can be done for peace, and at the present time done much more easily, for the people want peace. . . . 5. The Creation in Each Country of a Peace Ministry. . . . The Great Opportunity We believe that the Disarmament Con ference will have before it an unique opportunity. It will include almost every civilized nation. All over the world people are longing for peace as never be fore. They look not for a timid bargain over submarines and armies and aero planes, but for something larger and courageous, something that all can rec ognize as a great measure of peace. . . . We are sure that there are many who will feel the truth of the view we have tried to put before you. But some may hesitate to take the apparent risk in volved. If disarmament is a risk, arma ments are worse than a risk. ... In the name of the mothers who have done their part for the future of humanity we appeal to you to have the courage to take the risk which alone can bring the hu man race the assurance of any future at all. GERMAN INDUSTRIAL PRODUCTIVE SOCIETIES It was rather amusing when an Amer ican advocate of profit-sharing produc tive societies cited the German society "Produktion" as an example of this particular sort of experiment, when even the children in Hamburg know that "Produktion" is a consumers' society. Still his comfort for this fancy is to be found in the latest report of the Ger man Central Co-operative Union which says: "The Industrial Productive so cieties form only a small and insignifi cant part of the membership. At the end of the year there were 19 such societies. Since 1912 no societies of this kind have been admitted to the Union, and their number decreases from year to year. News and Comment I LIFE INSURANCE AGAIN Nobody has a chance to die but once, and he should want to make the most of it. The Seattle meeting of the American Federation of Labor just before the war, appointed a committee to investigate the costs of insurance. The investiga tion showed that union labor is paying more than $100,000,000 a year as pre miums for life insurance. More than 90 per cent of the insurance carried is the "industrial" type, the premiums on which are collected weekly. This insur ance, the committee found, costs the workers from two to four times more than it is worth. Out of this investiga tion has grown the Union Labor Life Insurance Company, a limited dividend corporation doing business for service. This is a step forward. In the United States group insurance is being practiced by big corporations. The Armour Company, the General Elec tric, and the Atlantic and Pacific Tea Co. insure their employees at a low rate. The last company provides insurance based on the wages and the length of time of service. From the lowest paid and shortest employed to the highest paid and longest employed, this insur ance ranges from $300 to $5,000. Dis ability insurance is also provided. Besides this insurance supplied by the company this concern offers additional protection through arrangements made with the regular insurance companies. A charge of sixty cents a month is made for each additional $1,000 worth of in surance carried. The General Electric carries this extra insurance with the Metropolitan Insurance Company. Of course the best kind of insurance is for the individual to insure himself. But few people can afford to do that. It is difficult for the wage-earner to save up enough surplus capital to protect his family from want in case of his death. Insurance is necessary. Co-operative insurance provides pro tection at cost. But something even more than that can be done. Insurance can be so conducted as to eliminate not only the profit but all the expensive examinations and accounting. Group insurance has been practiced for a long time in the English co-opera tive societies. The Insurance Depart ment of the Co-operative Wholesale Society insures all the members of a society at a very low rate, because the insurance is not for profit, and no medi cal examination, agents' fees, or elabo rate bookkeeping are required. Beyond this, something more can be done. Insurance can be made social. It can be lifted out of the field of business and impersonal investment and given a humane and personal character. This the co-operative societies are best pre pared to do. Insurance is live and inti mate when it is provided by an organization of which the insured is a democratic member; when the organiza tion provides his family with the neces sities of life as well as insurance; when in its banking department it is the cus todian of his surplus wealth; and when it also has a medical department to take care of his health. This is what the Co operative Movement aims to do in its consumers' societies with their various departments. Here is something that has the power to rise above cold business transactions. This is the best hope of insurance for the future. In the meantime, while people are getting ready for ideal insurance, co operative societies can begin providing insurance for their employees as the big corporations are doing. Then they can take the next step and insure the mem bers. Or a co-operative insurance society can begin directly with insurance of the members. Already we have some such organiza tions in the United States. We are be ginning. We have much to learn. But there is every indication that experience will continue to teach the advantage of doing things the co-operative way. WISE WORDS FROM WISE PEOPLE Patronage Dividends "Co-operatives the world over have urged the patronage dividend as a means of attracting and holding patronage. It is the outstanding feature that distin guishes a successful co-operative from a capitalistic business. It is so eminently fair that its merit appeals to all fair- minded men. . . . '' Some of our co-operative associations as they grow prosperous are developing a tendency to restrict the number of shareholders and pay the earnings as share dividends, instead of patronage dividends. They are no longer co-opera tive, but are aligning themselves with the apostles of selfishness to rob the very people they were organized to serve and defend. "Unfortunately the claims of capital are so firmly fixed in the minds of some of our members that they are unable to grasp the true meaning of co-operation. Loyal co-operators must be on guard at all times to protect themselves against this boring from the inside. Make your local association co-operative and keep it so. The essential features of a co operative business are: One vote for each shareholder; Limited rate of interest on capital; Patronage dividend. "These principles mark the dividing line between selfish greed and human brotherhood in business. ..." C. MCCARTHY, Manager, Farmers Union State Exchange, Omaha, Nebraska. Living Wages far the Farmer "The farm value of the things fur nished by the farm toward the family living averaged $578.59 a year per farm on 38 farms in Scioto County, Ohio, from which data were secured by the Ohio Experiment Station. These things furnished by the farm included dairy and poultry products, meats, flour, vege tables, fruits, fuel, and house rent. If purchased in the city, the investigation showed, these same things would cost $1203.97. "This is a new angle on the value of the things furnished by the farm toward the family living. The farm value of these things has been .ascertained in many surveys, but we do not recall ever having seen before any figures to show what their value would be at city prices. The figures are very significant, and put 156 CO-OPERATION farming in a somewhat more favorable light. '' City salaries and wages look mighty big compared with the net cash income of farmers. In many cases, of course, there is real disparity, especially when farmers' incomes are compared with some of the big salaries. But when we consider that city wage earners must pay over $1200 a year for the things that are furnished by the farm toward the living of the farmer and his family, city wages do not look so alluring." —Nebraska Union Farmer. Take Tour Choice "Just received notification of the de feat of the Haugen bill by the Senate, although we believe that the Corn Belt Committee has done everything human ly possible to get an agricultural relief measure through Congress before ad journment. It does not mean that we are defeated and are going to quit. In stead, we are more determined than ever. The contest will begin at the polls to strengthen our forces in those states that have supported the relief measure in a half-hearted way. ..." A. E. Cotterill, Sec'y-Treas., Farmers' Union of Iowa. Or this "Co-operators the country over feel greatly relieved that Congress has ad journed without enacting any legisla tion to put co-operative marketing associations under the meddling domina tion of a governmental board or commis sion. The Senate did a good job in the final week of the session in slaying the administration farm relief bill to estab lish a marketing commission, which, through the handling of a huge loan fund, would have had large power to direct the activities of the co-operatives. . . . We would be very happy to feel that this settles the question of the atti tude of the government toward the co operative movement, and that the co-operatives would not again be men aced by the threat of bureaucratic regu lation and control." L. S. Herron, Editor, Nebraska Union Farmer. FARMER-LABOR SUMMER SCHOOL From June 27th to July 5th the fourth summer session of the Farmer Labor School was held in Idaho Springs, Colo rado. Several of the sessions were de voted exclusively to Co-operation, the chief speakers on the subject being Col- ston E. Warne, a Director of The Co operative League, L. S. Herron, formerly a Director of The League, William E. Zeuch, President of Commonwealth Col lege, Thomas Howard, President of the Colorado Farmers' Union. Co-operation, public speaking, history of the labor movement, literature, eco nomics, were the chief subjects presented by an able group of leaders. Several interesting trips were made, among them being a ride to St. Mary's Glacier, a perpetual snowbank which was a novelty for some of the people who had never made snowballs in July before. One of the sessions of the school was held in a small schoolhouse high in these moun tains, where the altitude of 10,000 feet made walking and talking a bit difficult. Other well-known leaders at the school were Kate Eichards 0 'Hare, Eev. A. A. Heist, pastor of Grace Church, Denver, Harry W. Fox, President of Wyoming States Federation of Labor, Frank L. Palmer, Editor of the Colo rado Labor Advocate, etc. LOOK OUT FOR THIS " CO-OPERATIVE " The workers of the United States have been fleeced of many millions of dollars by various corporations masking as co operative. There is now being organized in New York City a company calling itself the American Consumers' Alliance, which, while not actually adopting the co-operative name, cites examples of the Rochdale co-operative movement in Eng land, Scotland and other countries to show what it intends to do, and in its literature claims that it is a part of the co-operative movement. It is absolutely non-co-operative in character, and the consumers should be warned of this fact at the beginning. The members have no control over the officers. The concern is organized as a deed of trust in which the trustees are absolute dictators. CO-OPERATION 157 And not only is the enterprise entirely non-co-operative. It is unsound as a business institution—if its literature is any criterion. The advertising leaflet indicates that the members may expect a 40 per cent surplus from operations each year, one-half of which, or 20 per cent on purchases, will be returned as divi dends to the members. Any business man who makes that kind of a promise is offering something that we should all grab quick:—if we believe he can make good! The offices of The Co-operative League advise the workers of Greater New York to be on their guard against the Amer ican Consumers' Alliance. A NEW CO-OPERATIVE BOOK SHOP The Co-operative Book Shop of Den ver, Colorado is a new arrival in the field of Co-operation. For several years the workers of Denver had a co-opera tive store, but this venture failed about three years ago. Ever since then a small group has been holding on to the idea of starting another co-operative, and this Book Shop is the result. The headquarters of the new enter prise is in the building of Grace Church, scene of so much of the leadership of labor and liberal activity in Denver. The Book Shop has been aiding the Farmer- Labor Summer School, and next fall ex pects to be a powerful ally of the Labor College and the Sunday afternoon Forum meetings held at Grace Church. Co-operators in other parts of the coun try will wish these good folks all the success that they deserve, which is a great deal. MORE CO-OPERATIVE UNDERTAKERS The Christopher Co-operative Under taking Association, Christopher, 111., for the first quarter of 1926 had an income of $4,341.50 on which the net gain for the quarter was $880. The capital stock, all of which is held by local unions, amounts to $4,383 and the reserve fund to $17,409. The latter figure shows what tremendous profits there are in the pri vate undertaking business, for in spite of the fact of reduced rates offered by this miners' co-operative company, a very large reserve has been accumulated. THE FAKE " CO-OPERATIVE LEAGUE OF AMERICA" From time to time during the past five years we have published informa tion about a fraudulent co-operative organization which called itself the '' Co operative League of America." Despite publicity, it was able to keep going and to use a name which was quite the same as that of The Co-operative League. The spurious concern has now closed up. It went into bankruptcy. Only about $700,000, out of the millions that it collected, will be salvaged. The Hawkins Mortgage Co., of Portland, Ind., controlled it. Hawkins, the presi dent, and thirteen officers of the concern have been convicted in the Federal Court of Indianapolis of using the mails for fraudulent purposes. We are rid of this particular fake to which the working people so freely paid their money, while refusing to support genuine co-operatives. It is gone. But others will spring up to take its place. The workers demand fakes of this kind through which they can lose their money and thus remain workers. Class con sciousness and class solidarity are thus maintained. SPARTA CO-OPERATIVE SOCIETY Sparta, 111., is another mining town which boasts a very good co-operative. Income from shares for the first quarter of 1926 was $4,211. Because of the un employment this marks a decline in turn over and consequently a loss of $275.50 was incurred for the three months. The paid in share capital now amounts to $1,695 and the loan capital to almost exactly the same amount. The reserve fund is $1,272. ARE YOU A DEPOSITOR OR A BANKER? There is a great difference. De posits in the banks of the United States, other than national banks, in 1924 were 34% billions; while capital stock amounted only to 1% billions. Deposits were 16 times capital stock. Did you get sixteen times as much on your deposits as the downtown banker got on his stock ? 158 CO-OPERATION CO-OPERATION 159 "Hi District Leagues GAINS FOR THE NORTHERN STATES LEAGUE The New Era Association, a fraternal life insurance society already known to the readers of CO-OPERATION, affiliated with the Northern States Co-operative League in June, and thus becomes united with the national movement. Organized nearly 30 years ago in Michigan, the Association now has more than 34,000 members. This addition to the member ship roll of the N. S. League brings the membership of the latter up to 52,000. So far the New Era Association can operate only in Michigan and Illinois, but soon hopes to operate in Minnesota also. The Association has total cash and in vestments of $224,467. Its Benefit Fund is $144,573, and its Investment and Life Legal Eeserve $73,461. A monthly bul letin is published under the name NEW ERA EECORD. Late in June and early in July Mr. Carl Lunn made a trip into Central Minnesota and induced four or five of the store societies to affiliate with the League, and two or three others have promised to give the matter serious con sideration. On May 20th, 21st, 22nd and 23rd the Franklin Co-operative Male Chorus, made up of employees of the Creamery, took a bus trip up to Duluth, Cloquet, Hibbing and Superior and gave four concerts under the auspices of the N. S. League. At the last stop in Superior a banquet was prepared and the co-opera tors of Minneapolis had an excellent opportunity to get well acquainted with those who live and work in Duluth and Superior. CENTRAL STATES CO-OPERATIVE LEAGUE GETS UNDER WAY The Central States League is now set tled in its new home at 705 West Mul berry St., Bloomington, Illinois. Orders for multigraph printing are being taken from several of the societies. A new drive for members is being made by the Consumers' Mutual Aid Guild, with a view to bringing the mem bership up to the 1000 mark. Two or three of the societies have promised to put on special campaigns. At the organization meeting of this League all the delegates present became individual members. With this start of 22, the League is striving to increase its individual membership to the high mark attained by the Northern States League in its early years. The Bloomington Society and several others are holding picnics during July and August, at which the Educational Secretary, A. W. Warinner will speak. From The League Office CO-OPERATIVE CARTOON CONTEST During the winter of 1925-26 The Co-operative League offered a prize of $50 for the best pair of cartoon char acters submitted. These two characters were to represent the co-operator and the non-co-operator engaged in dialogue. They will be used in the publications of The Co-operative League, including THE HOME CO-OPERATOE, and also in other co operative or labor or farmer publica tions. The committee went over the various cartoon characters submitted by the con testants and have agreed to award the prize to John M. Baer, the well-known cartoonist for many of the farm papers of the West during the past several years. Mr. Baer is now authorized to go ahead and prepare cartoons contain ing these two winning characters for use by co-operative papers. By autumn, perhaps sooner, they will begin to appear regularly. NEW LEAGUE LEAFLET "How Co-operation Differs from Ordinary Business" is the title of a pamphlet just reissued by The Co-opera tive League in conjunction with Con sumers' Co-operative Services and the Northern States League. It is a four-page educational leaflet which sells for 2 cents per copy or $1 per hundred. Directors5 Page ARRANGING THE PICNIC OR ENTERTAINMENT Now is the time to arrange Picnics, Visits t« other Co-ops, Week-end Camp ing Parties, etc. September is a good month for enjoying the out-of-doors, and the regular membership meeting might well be held in this way. How to Plan for a Successful Picnic Set to work a month in advance pre paring for this important affair, by appointing a large committee of men and women, sub-divided into the follow ing committees: Arrangements: Place, time, convey ances. Program: Music: Band or amateur musicians—chorus or community sing ing. (Write to League for suggestive songs, familiar music.) Games: Contests such as races of various kinds, with suitable inexpensive prizes: for children and adults. Have a member disguised and masked going about with a basket of groceries, select some prearranged sentence which Co-operative Central Exchange Wholesale Grocers and Jotters, Bakers We supply goods to Co-operative Societies ONL.Y. We are owned and controlled liy Co operative Societies. We are organized to enable Co-operative Societies to do collectively what tliey cannot do individually. Offices & Warehouses Winter Street and Ogden Avenue Bakery Plant North Fifth Street & Grand Ave. SUPERIOR, WISCONSIN THE HOME CO-OPERATOR A four-page magazine fur use in co-operative societies. Issued monthly, in bundles, $1 per hundred. Published by The Co-operative League the people try to guess. For instance the correct answer might be "How do you do Mr. ........ are you the jolly co-operator who is giving away that bas ket of food ?'' And the first person who comes nearest to making this remark and guessing the identity of the disguised man would be given the basket. Speaker: If possible procure a well known co-operator to come and address the crowd, or have ten-minute talks by two or three of your own local members. Educational: Have a booth with co operative literature, and pictures. See that several people are always on hand to talk about the advantages of the asso ciation and try to gain new members and friends. (Write to the League for suggestions.) Eefreshments: In addition to the basket lunches, have on sale coffee, ice cream, fruit, etc., from the co-op store- Be sure to advertise well the fact that the co-op supplies these things at popu lar prices, and possibly some ladies might be induced to bake cakes from co-op flour to auction off. The Madras Monthly Bulletin of Co-operation ROYAPETTAH, MADRAS, INDIA The premier monthly on Co-operation in India. Special articles on Rural, Con sumers', Agricultural, Credit and Indus trial Co-operation; and Co-operation Abroad. Subscription Rs. 4/12 per annum. The Canadian Co-operator Brantford, Ontario, Canada The organ of the Canadian Co-onera- tive Movement, owned Iby and con ducted under the auspices of Xhe Co-operative Union of Canada. Published monthly 75c per annum 160 CO-OPERATION PUBLICATIONS —OF— THE CO-OPERATIVE LEAGUE HISTORICAL Per Copy Per 100 3. Story of Co-operation .............$ .10 $6.00 7. British Co-operative Movement..... .10 6.00 38. Consumers' Co-operative Movement in U. S., 1926................. .10 6.00 39. Consumers' Co-operative Societies in N. Y. State (Published by Con sumers' League ................ .10 59. Co-operative Movement in Europe.. .05 4.00 64. Progress of Co-operation in United States...................... .05 4.00 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 Whole sale ........................ .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-opera tive League ................... .10 29. Credit Union Primer (By Ham and Robinson). .................. .50 43. Co-operative Housing ............. .10 50. A B C of Co-operative Housing.... .10 51. Model Lease for Co-operative Apart ment House ................... .10 MISCELLANEOUS 16. Model Co-op State Law............ .10 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 33. Credit Union and Co-operative Bank .05 13. The Place of Co-operation Among Other Movements .............. .25 34. Co-operative Movement (Yiddish) .. .02 1.25 30. " When the Whistle Blew " (Story, by Bruce Calvert) .............. .06 41. Social Aspects of Farmers' Co-opera tive Marketing (By Benson Y. Landis). .................... .25 42. Co-op Homes for Europe's Homeless .10 53. Real First Aid for the Farmers.... .05 55. A Better World to Live In........ .05 57. How a Consumers' Co-operative Dif fers from Ordinary Business.... .02 1.00 •60. The " Moral Equivalent " of Jazz... .02 •62. Buttons (League Emblem in 3 colors) % inch diameter........ 3.00 63. Sign or Transparency of League Em blem. Green and gold, 8 in. diam.. .25 15.00 ONE-PAGE LEAFLETS (One Cent each; 50 Cents per 100; $2.50 per 500; $4.00 per 1,000.) (1) Principles and Aims of The Co-operative League; (18) 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 Move ment?; (45) Schools and Stores; (47) A Man's Right to a Job; (48) Tips to Co-operators; (49) The Way Out; (61) Co-operation Brings Disarmament. MONTHLY PUBLICATIONS CO-OPERATION—(In bundle lots, $7.50 per hun dred). Subscription, per year............. .$1 00 HOME CO-OPERATOR, 4 pages...... .$1.00 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 Move ment. They may be ordered through The League: Bergengren, Roy F.: Co-operative Banking, A Credit Union Book ..................... $3.00 Blanc, Elsie T.: Co-operative Movement in Russia . . . . . . . ....................... 2.50 Brightwill, L. R.: Animal "Co-op" Book—For Children............................ .15 Faber, Harald: Co-operation in Danish Agricul ture, 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 American edition and notes, 1922. Cloth, $2.00; paper bound ..................... .90 Hall, Prof. Fred: Handbook for Members of Co operative Committees ................... 2.00 Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Paper bound........ .60 Holyoake: Rochdale Pioneers ................ 1.00 Howe, Fred C.: Denmark, a Co-operative Com monwealth, 1921 ....................... 2.00 Jessness, O. B.: Co-operative Marketing of Farm Products ......................... 2.50 Madams, J. P.: The Story Retold............ .50 Nicholson, Isa: Our Story................... .25 Owen, Robert: Autobiography .............. .50 Potter, B.: Co-operative Movement in Great Britain . . . . . . . ....................... 1.00 Redfern, Percy: The Story of the C. W. S..... 2.00 Redfern, Percy: The Consumers' Place in So ciety, 1920 ............................. 1.00 Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918 ........................ 1.00 Smith-Gordon and O'Brien: Co-operation in Denmark. . . . . . ..................... 1.00 Smith-Gordon and O'Brien: Co-operation in Many Lands, 1920 ..................... 1.50 Stolinsky, A.: The Co-operative Movement. (In Yiddish). ............................ 1.00 Warbasse, James P.: Co-operative Democracy.. 2.50 Webb, B. and S.: The Consumers' Co-operative Movement, 1921. Board, $2.00; cloth..... 5.00 Webb, Catherine: Industrial Co-operation, 1917. 1.50 Woolf, Leonard: Co-operation and the Future of Industry ............................ 1.00 Woolf, L.: Socialism and Co-operation........ 1.50 Co-operation in Great Britain and Ireland, paper .25 CO-OPERATION, Bound Volumes, 1915 to 1925 inclusive, each ......................... 1.25 Transactions of Second American Co-operative Congress, 1920 ......................... 1.00 Transactions of Third American Co-operative Congress, 1922 ......................... 1.00 Transactions of Fourth American Co-operative Congress, 1924 ......................... 1.00 Northern States Year Book, 1925. Paper..... .20 The People's Year Book, 1926. Cloth, $1.00; paper bound ........................... .60 (.Ten cents postage should be added for books which cost more than $2.00, and five cents for the smaller books.) (MMATION A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in voluntary association, produce and distribute for their own use the things they need. Published Monthly by THE CO-OPERATIVE LEAGUE 167 West 12th Street, New York City J. P. WARBASSE, Editor Filtered as Second Class matter. December 19, 1917, at the Post Office at New York, N. Y., under the Act of March 3, 1879. Price $1.00 a year. VOL. XII, No. 9 SEPTEMBER, 1926 10 CENTS THE FIFTH CO-OPERATIVE CONGRESS Thursday, Friday and Saturday, November 4, 5 and 6, 1926 MINNEAPOLIS, MINNESOTA Auditorium: Franklin Co-operative Creamery Association, 2108 Washington Ave., North Rochdale co-operatives, agricultural and producers co-operatives, trade unions and educational societies are invited to send delegates and fraternal delegates. All interested in Co-operation are welcome. Send names of delegates, fraternal delegates and alternates to The Co-operative League before October 1. 162 CO-OPERATION CO-OPERATION 163 1-1 if The Grange Co-operative Wholesale at Seattle, Washington A BOUT fifteen years ago a number of co-operative stores were organized by •^ the Grange members out in the state of Washington. They struggled along independently until 1919, and then realizing the need of centralized buying, they organized a Wholesale at Seattle. There are now about 66 Grange co operative stores in Washington, 35 of which have bought stock in the Wholesale. At least 20 are very loyal to their central organization, and are benefiting to a large extent by the services of the Wholesale. Efforts are constantly being made to induce the whole 66 to patronize the Seattle Wholesale and make it possible to increase the volume of business and thus save for all. At present the Wholesale is doing several hundred thousand dollars busi ness annually in general merchandise, including the private brands "Pomona," "Gleaner" and "Grange," of which it controls the manufacture and distri bution. Mr. W. 0. Dickinson, Manager of the Wholesale, says, "There is no question that the central wholesale has saved the co-operators of this state hundreds of thousands of dollars by supplying goods at lowest prices, and holding competitive prices down." lie claims that it is an acknowledged fact that wherever Grange Co-operative stores are located, or price quotations on the needs of the farmer and producer are received from the Central Whole sale, there the prices are noticeably lower than elsewhere. Mock and Poultry Feeds. ffyde/er Service a&i 1 \ CO-OPERATIVE MILL The above picture shows the Grange Co-operative Mill at Seattle. It was once a brewery and now performs a more useful purpose by producing co-operative feed and flour for the local stores. The capacity of the mill is 100 cars per month. We hope to hear that it will soon be running to its utmost capacity and that every co-operative store in Washington is buying "Grange" products, instead of falling for the subtle efforts of private concerns to under sell the Co-operative Wholesale. Now, there is that fine Co-operative Mill standing ready to produce most of the feed and flour needed by the local stores. The highest grade and the lowest prices will be possible only if "all stick to gether" and loyally procure their products from their own central plant. A demand on the part of the local members for "co-operative" brands would force the managers to carry them, and a persistent educational advertising campaign would accomplish this result. Back in 1922 when the Grange Wholesale started producing their own "Gleaner" brand of soap such a campaign was successful. The story was quite interesting. It seems a certain soap factory was induced to boycott the Co-operative Wholesale and refused to sell them certain brands of soap. The Grange Wholesale was not able to buy a soap factory, but it did find a manu facturer, who produced a better product, to make soap exclusively for the co-operatives. The story of the boycott was told over and over again to the members and such a feeling of loyalty was created that it soon happened that instead of 100. cases the Wholesale was selling 500 cases per week. When the private factory tried to be friendly and gain this trade back, the Wholesale was in a position to refuse to do business with them. '' The Wholesale constantly endeavors to help producers market their crops to best possible advantage. It has been possible to handle hundreds of cars of hay, as well as great quantities of wheat, oats, and barley." AUDITING DEPARTMENT One of the important services of the Wholesale is the Accounting and Auditing Department. Its methods are so good that the stores using it are among the most successful in the state. In fact the Credit Organizations in Washington have refused credit to some co-operative stores that did not use the Wholesale Accounting system. Those using it had a 15 per cent gain in their business in 1925, while some of those still using their own independent systems of bookkeeping made but 5 per cent gain during the past year. This shows the value of centralized administration with decentralized control. The more stores using the central system the less expensive it becomes for each store. The possibility of comparison and quick finding of leaks and excessive overhead expenses by expert central auditing cannot be overestimated. INSURANCE The Washington Fire Relief Co-operative Association, limited to members of the Grange, was organized April 18, 1894, with $100,000 insurance, and seven months later had $120,000 on the books. It now carries about $9,000,000 risks, scattered over 34 counties, with about 3,500 members, who elect the Board of Directors for four-year terms. The costs have been less than 30 cents per $100 insurance per annum. It paid over $150,000 losses in the past five years. The Association wrote last year $2,560,000 worth of insurance, and in July, 1926, wrote 149 policies totaling $327,813. SOME LOCAL EXAMPLES At Issaquah the local co-operative in 1925 did a business of over $234,000 on a capitalization of $10,000, with 175 members. This is one of the largest stores and has six employees. They own buildings valued at $10,000, which are all paid for, and carry a $23,000 stock. The store has been in existence since 1916, and is certainly one of the promising co-operatives. Last year a savings return was made to the membership. Chehalis co-operators organized their store in 1919 with 200 members and a capitalization of $10,000. They handle groceries, flour, feed and auto tires and other merchandise used by farmers. The business in 1925 amounted to 164 CO-OPERATION $141,742, and they employ four people beside the manager and bookkeeper. They made a net profit of $2,264 in 1925. In 1918 the Eedmond co-operative store was organized. It is one of the smaller of the Washington Grange societies, having only 95 members. But it is a very ideal organization. The best of harmony prevails, the directors and manager have built up a good business. The members are all loyal, and the business in 1925 amounted to $75,695. The buildings are all paid for and this year ground has been broken for a warehouse 40x114 to be built of concrete for storing hay and feed. The manager each year has been able to report an increase in net profits by discounts and turnover. m i I Hat. 'X^^y*-**- The above photograph of the Kent Grange Co-operative store is typical of the 66 Washington co-operative stores. The name "warehouse" is used quite generally because a large business is done in feed, flour, etc. The Kent society started 13 years ago in a store which was open only once a week, and now has grown to a membership of 350, with 7 employees, owns $15,000 worth of prop erty, and supplies almost every need of its members through the Central Whole sale. Mr. Fred Nelson, the president, reports a net gain for 1925 of $4,416. With loyal support of all the Washington Grange Stores such as the four described above, there is no question about the increased progress of the move ment in that state, with the untiring efforts of such men as Mr. A. S. Goss, Master of the Grange, and the Co-operative Committee of the Grange. The policy of the Wholesale in directing the manufacturing of feeds, etc., has been to eliminate all profit takers, and distribute all products at actual cost plus expense of handling. The Co-operative Movement in Washington has taken the second step by federating the local societies, and performing centralized service. The whole country -will rejoice to see every local group doing its part to further the promotion of its central organization. M. W. C. CO-OPERATION 165 Vital Issues WHY HAVE WE LOST THOSE LEADERS? Many are the reasons given for the failure of Co-operation to make more rapid progress in the United States. '' Too much competition "; " Too little co operative understanding"; "Inefficient management"; "Lack of co-operative loyalty." There is truth in all this. But there is one great weakness that is not often mentioned, and it must be given more thought and attention. A person could start out from New England and travel across the country, zigzagging north and south, from Ver mont to Western Tennessee to North Dakota and Southern California and Northern Washington; spending twelve months visiting the co-operative enthu siasts of yesterday who have dropped out of the movement. Almost every state in the Union holds a few men and women who, a year or five years or ten years backj, were willing to give up their futures, their families, almost life itself for Co-operation. For a few months or a few years they shone as meteors in the co-operative sky; now they have faded back into insignificance, mere busy people in a world of busy people, grubbing for the weekly pay en velope, patronizing the movies, longing for the bigger and more interesting life that Co-operation showed them for a brief time. Here it is a staunch labor unionist who did heroic deeds in his own city in the promotion and leadership of a big co-operative; today he is mechanically going about his daily work, living for his family and himself, shunning the fellow co-operators, whose presence he once sought. There it is a young fellow speaking the broken accents of an immi grant, five years ago an apostle of Co operation, a wise president of a large store society; today his store is bank rupt and the young fellow is drowning out the memories of failure in real estate speculation. Elsewhere it is a woman who organized and served as the chief inspiration for a fine little store in an eastern industrial center, who later went out and organized other co operatives, started Women's Guilds in many towns; she now tries to hide the ever recurring thoughts of co-operative failure which overtook them, of the blame that was heaped upon herself and her husband, in the petty household tasks which have made of her in two short years the same drudge that is to be found in a thousand homes in the same city. In another town we find the former leader of a farmers' co-operative sick and disgusted that the store has fallen into the hands of local business men, turning more and more to his radio and his farm implements and his boys and girls for the solace that discourage ment demands. Or it is a successful lawyer who threw into the co-operative game all his brilliant talents as an or ganizer and writer and speaker, lost much of his best practice to his rivals, and when failure came to the co-opera tive he was ridiculed by his fellow in tellectuals for giving so much to the workers' game, and blamed by the work ers with having "feathered his own nest" out of the proceeds of the failure; he now devotes himself strictly to his law practice and is making a big name for himself and lots of money, but is not happy. Every week we are being told that we should organize new co-operatives, find new leaders, extend our movement over a wider territory. We are asked to sub scribe to the popular doctrine that in mere numbers there is strength and permanence. But we know better. Newly organized societies are value less if they are going to follow the road to failure that is so well trodden in the past. New leaders may be turned out by the thousands, but unless we can guard them from the dangers, the dis couragements, the disillusionment that has dragged down hundreds of leaders before them, what permanent good are they going to do the movement? Since 166 CO-OPERATION 1840 we have had co-operative leader ship in the United States, and where has it brought us? Those who shout for more propa ganda, more stores, and more converts to the cause are the sentimentalists who cannot help; they are the futile folks who do more harm than good; they do not know the powerful forces of capital ism and the capitalist psychology that dominates American life, if they think that the extension of a weak movement over a still larger territory, deploying of thin ranks over a larger front is going to make any dent in the system under which we live. Many of these past leaders have gone down in the fight because they did not have the support they needed. The young immigrant would not now be up to his neck in real estate speculation if he had felt that a hundred co-operators in other parts of the country were with him in his struggle to build and maintain a store in his own town; nor would that woman now be trying to drown her memories in an excess of household drudgery if she could have found occasional encouragement in the words of fellow workers in other cities. Isolation has caused the defeat of hundreds of genuine leaders in our movement. It is the job of those of us who now have responsible places in the co-opera tive movement to build stronger founda tions, tighten our fences. We have got to draw into a closer unity the genuine leadership we now have, weave out of it a fabric that cannot be broken or torn by the strongest thrusts of the profit system and the mass selfishness it breeds. Today there are a few score true leaders in our co-operative movement; men and women of business sagacity, or ganization experience, proven devotion to Co-operation. Of all the pieces of work before us, the greatest and most important is that of drawing these men and women into closer contact with one another, strengthening the friendship and confidence between them, giving to each the feeling that every other one is absolutely behind him in case of trouble. When we have that foundation estab lished, then we shall not lose our best workers. And with that foundation to build upon, we might have a powerful co-operative movement in this country inside of two decades. Without it, 20,000 societies and 5,000,000 members would not constitute a real co-operative movement, for the first storm in the social or economic life of the country would swirl these societies away like so many dried leaves before an autumn wind. C. L. THE INSTALLMENT BUSINESS It is estimated by the Farmers Loan and Trust Co. that $3,293,411,878 of automobiles, phonographs, radio sets, vacuum cleaners, washing machines, furniture, pianos, and jewelry are sold annually on the installment plan in the U. S. The statistics of the U. S. Chamber of Commerce show $5,000,000,000 of goods sold on installment. President Merseles, of Montgomery Ward, says that this installment business will have the effect to postpone the business de pression but that it will cause the depres sion to last longer when it comes. Le- land Olds, of the Federated Press, says that the only way out is for the workers to convert these billions of dollars worth of goods into wages by refusing to pay for them; that would mean adding that amount to labor's wages and as a result would mean more prosperity. Here are two views of the subject: capitalistic and labor. The Co-opera tive view is that the consumers them selves should take the profit that flows into the pockets of traders and investors, and with that they can have the good things without panic or confiscation. It can all be done in the normal course of business. The co-operative method of business produces neither panic nor de pression, nor does it stand for confisca tion. It is the simple and orderly method which asks the consumer to pay for and own the goods before he carries them home. J. P. W. CO-OPERATION 167 PROVISIONAL PROGRAM, FIFTH NATIONAL CONGRESS OF THE CO-OPERATIVE LEAGUE OF THE U. S. A. Minneapolis, Minn. FRANKLIN CO-OPERATIVE CREAMERY AUDITORIUM 2108 WASHINGTON AVE., NORTH WEDNESDAY, NOVEMBER 3ED 7 p.m. Meeting of the Board of Directors of The Co-operative League. THURSDAY, NOVEMBER 4TH Opening Session 9 a.m. Reading of the Call to the Congress. Address of Welcome by Harold I. Nordby, President, Northern States Co-opera tive League, and Franklin Co-operative Creamery Association. Election of Committees on Rules, Credentials, Nominations, Resolutions. Greetings from Foreign Unions. Greetings from Labor and Fraternal Organizations. President's Address. Report of Committee on Credentials. Two Minute Reports of Delegates. First Administrative Session of the League 2 p.m. Report of the Executive Staff and Executive Committee by the Secretary. Cedric Long. Report of the Treasurer. W. Niemela. Report from Central Committee of the International Co-operative Alliance. James P. Warbasse. Reports of District Leagues. V. S. Alanne, A. W. Warinner, L. E. Woodcock. Visit to the Plants of the Franklin Creamery. 7 p.m. Reception. Banquet. Music by Franldin Chorus. FRIDAY, NOVEMBER 5TH Policies and Practices of Societies 9 a.m. What Kind of Educational Work Can Be Carried on Inside the Co-operative Store? Discussion opened by A. W. Warinner. Celebration of International Co-operative Week. Frederick Burandt. Uniformity in Co-operative Accounting. Is it Possible? H. V. Nurmi, W. E. Regli. Relation of Consumers' Co-operative Movement to the General Labor Move ment. George Halonen 168 CO-OPERATION CO-OPERATION 169 it" t; Banking and Insurance 2 p.m. The Relation of Co-operative Insurance to Our Distributive Movement. Should The League Undertake the Organization of a Co-operative Insurance Society, or Should It Throw Its Support to Existing Societies? Should The League Undertake the Organization of a Co-operative Banking Society? Should It Throw Its Support to the Credit Union Movement? Or Should It Promote Legislation to Authorize Existing Consumers' Soci eties to Accept Savings Deposits from Members? Eskel Ronn, Roy F. Bergengren. 6 p.m. Supper. Committee Meetings. Bound Table Discussions 8 p.m. The Co-operative Marketing Movement What Should Be the Relation of The Co-operative League of the U. S. A. to the Co-operative Marketing Movement ? Albert S. Goss: Master, Washing ton State Grange; C. McCarthy: Manager, Nebraska Farmers' Union State Exchange. SATUBDAY, NOVEMBEB 6TH Second Administrative Session of The League 9 a.m. Membership and Financial Support of The League. A Discussion of Policies for 1927 and 1928. Toward a National Co-operative Training School and Correspondence School. Toward a National Co-operative Year Book. What Progress Are We Making? Eeport of the Nominating Committee. Third Administrative Session of the League 2 p.m. Shall Local Societies Hold Direct Membership in the National League, in Districts Where a District League Exists? Election of Directors and Auditors for 1927 and 1928. Election of Delegates to International Congress, 1927. Eeport of Committee on Resolutions and Action Thereon. 6 p.m. Meeting of Board of Directors of The League. Evening Session Mass Meeting. Co-operative Moving Pictures. Band Concert. Arranged by Franklin Co-operative Association SUNDAY, NOVEMBEB 7TH Conclusion of Meeting of Board of Directors of The League. Conference on Co-operative Wholesaling. Conference for Managers under auspices Northern States League will be held on Wednesday, November 3. British Coal: How About Co-operation? By GEKTKTJDE COKNWELL SEWARD '"PHE British coal strike has been not *- only of acute interest to all social- minded human beings but in a special sense suggestive and thought-provoking to those who think they see in consumer co-operation a solution to some of our most disturbing economic problems. In the British coal industry we have an absolutely necessary activity which, it is admitted on all sides, cannot, as things are to-day, be conducted with profit to the owners of the coal, the machinery and the working capital, and with a decent living-wage to its workers. What is the answer organized society has made to this problem? We may fairly say none, since the measures ac tually taken by the British Government in its official capacity, except for the uneconomic and necessarily temporary expedient of the subsidy, were as irrele vant to the problem in hand as war is irrelevant to the solving of any problem. Almost revolutionary was the proposal of the miners that the mines should be "nationalized"; and the Coal Commis sion's recommendation that the govern ment should acquire the mineral in the ground and assert ownership by the state of "unproved" coal was at least an important portion of that plan. Neither was acceded to by the owners, and the individualistic, competitive idea is still so strong, and capitalism so blind, that the extra-legal recommendations of commissions and the extra-official per suasions of great government officials, even toward such obvious ends as better organizations and improved technical methods, have so far failed and are be coming daily less hopeful, while parlia mentary action, except to increase the miner's working-day, seems to be im possible of attainment. Here is where co-operative specula tion becomes interesting: Let us sup pose that Government does refuse to take over the necessary drastic regula tion of the industry, and that the in dustry persists in refusing to regulate itself, while the miners continue to re fuse to work for less than a living wage —resulting in no coal; or let us suppose —also a possible outcome—that even under the most searching reformation it turns out that profits and decent wages cannot both be produced. What is the answer then? Obviously, in the first instance, the industry must be taken over by some agency which will abolish internal—one might say internicene—competition and introduce operating reforms; and in the second by one which will do all this and also operate without profit. How could such an industry be oper ated, if not by the state, on a non-com petitive, non-profit basis? It is at least conceivable that it could function under co-operative principle and control. It is rather a staggering enterprise to envisage for co-operation, but it is surely not impossible. It may be as well to recall, since we have in the United States no similar co-operative institution, that the British Co-operative Wholesale so cieties, which handle the production and wholesale purchasing end of British co operative enterprise, and do it to the tune of many millions of pounds a year, sell not to individuals but to local so cieties. Any large-scale enterprise such as national coal production and distri bution must of course be carried out along these lines, and it is clear that the British have far more machinery de veloped for large transactions than have we. It is perfectly true that co-operation has never in any land undertaken oper ations of such dimensions and of such crucial importance, though the Scottish and English Co-operative Wholesale so cieties have factories producing on a large scale most of the necessaries of life, as well as steamships, tea plantations, wheat fields, farms, etc., etc. British 170 CO-OPERATION CO-OPERATION 171 co-operation is, however, not altogether without successful experience in coal. It has not only operated some mines at Shilbottle for several years with a degree of success, but several local societies have undertaken coal distribution with such resultant economy and efficiency that the report of the Coal Commission, after an extensive analysis of a number of profit-making companies' costs and charges in comparison with co-operative figures, contains the following para graph : "The general result of this compari son is to suggest that the expenditure of the retail merchant on establishment and clerical salaries is excessive; if all the retail trade in London could in these respects be conducted as economically as that of the co-operative society whose ac counts we have examined, a very sub stantial margin would be available, either for reducing prices to the con sumer or for increasing prices to the col liery, and so increasing wages to the miner." This is surely an interesting commentary from outside co-operative ranks. It suggests that a question which has been lurking in the background of this speculation would not actually come up—that co-operative methods and machinery would operate so economic ally that there would be profit—that is, savings, or rebates—in the venture. But * * * Would co-operators produce coal for export should it be necessary to forego profit? That opens a wide window into the future of co-operation, but the pros pect seems as formless as if it opened upon a London fog. The simple fact that much of England's coal goes to foreign countries, and that some of it is needed abroad, presents no difficulties either in principle or practise; already the European co-operators purchase from each other, sometimes in large quantities, as in the case of Danish but ter and eggs; Russian co-operators used to send raw material to English co-oper ative factories, perhaps are doing so again. Moreover, as native non-co-oper ators are permitted to purchase at co operative stores, so might foreign non- co-operators be permitted to purchase coal. But it has not been the general prac tise of co-operation to produce goods on which it could pay no rebates. The sav ing to the consumer of the profits of private enterprise has been the motive for co-operation—plus the honesty and quality that result from the motive of service. The motive for producing non- profitable coal would be simply to obtain coal. We must foresee, if we envisage a Co operative Commonwealth of the World, a time when goods and services, no longer produced in competition with profit-making activities, will be sold only sufficiently above total cost to provide a safety-margin, and other devices than the rebate may take care of this. Our present rebates are determined by profit- making business. Moreover, co-operation will have to cross national boundaries, for the Co operative Commonwealth of the World will need to export and exchange-raw materials and manufactured products, and the only justifiable basis of foreign, as of domestic, prices will be actual cost. It is the sober opinion of many (and by no means only of those who desire it) that this thing will happen: that the workers' demands will continually in crease so long as there is private profit in industry, and that their ability to enforce these demands will constantly grow with more and still more complete and perfect organization. It must be understood that the extremely moderate demands of the British miners—merely that their present standards, already far below those of a good human life, shall not be lowered—are not offered as a case in point; but the possibilities in herent in the mass-action they have at tained in their support is distinctly sug gestive of revolutionary possibilities in the future—and not the less so that they have utterly failed this time of a direct enforcement of their demands. The slow-growing Co-operative Com monwealth of consumers producing for their own needs will, if it comes, be a true revolution in its ultimate effect; but it will be peaceful, not violent. It is the opposite of the dictatorship of any class—we are all consumers. A hint of how peacefully this can occur is given by the European communities already existing where more of the necessities of life are provided by co operation than by private enterprise. The Co-operative Commonwealth would obviate the sudden overthrow of exist ing institutions and the coming of the Socialist state, with its doubtful accom paniments of official bureaucracy, its mixing of politics with economics, and its almost unavoidable interference with personal liberty. It would leave the state untouched in its ultimate minimum functions of enforcing law and order, conducting international relations and insuring defense. And the beginning will come when co-operation does indeed take over the control of basic industries. The American Institute of Co-operation By GORDON H. WARD American Institute of Co-opera- tion held its Second Annual Session at the University of Minnesota, from June 20 to July 17. The aggregate at tendance was about 700, including some 100 County Agents and graduate stu dents of agricultural economics. The Institute brought together managers and leaders of the farmers' co-operative marketing associations of the country, though principally from the Middle West, to discuss their mutual problems and means of meeting their difficulties. The first week considered the organi zation of co-operatives and market analysis, drawing material from the co operative marketing of livestock and wool. The second week centered on pro duction programs for co-operatives and drew material from the experiences of the dairy co-operatives. The following week was devoted to field service, edu cation, and publicity and drew on the varied experiences of the co-operatives handling potatoes, poultry and eggs, and fruits and vegetables. The con cluding week was devoted to a considera tion of financing and credit with the commodity emphasis on grain and cotton. Through federation the co-operative associations handling a given commodity have been able to make scientific studies of consumer demands and with this knowledge have endeavored to produce the types and qualities desired, the dairy co-operatives in particular. These studies have also shown the approximate amounts which consumers use at present prices, so the co-operatives have en deavored to prevent over-production with its resulting wastes. They have attempted to do this by paying their members prices which induce the pro duction of approximately the desired quantity. However, the consumers need not fear that this control will be used to demand high prices from them. The managers of the co-operatives realize that their interests can be best served by retaining the good will of the consumers through fair prices. They are all striving to increase the efficiency of the marketing process so as to reduce the spread between what the consumer pays and what the farmer receives, and an increasing number are becoming con vinced that it is only fair to share these savings with the consumers of their products. The farmers' co-operatives are placing increasing emphasis upon education of the members in the principles and philosophy of co-operation, the funda mentals of marketing, and sound meth ods . of business practice. Financial success is essential for the continuance of a co-operative, but experience has shown that a spirit of loyal co-operation among the members is of prime im portance. Such a spirit comes as the re sult of working together and under standing what the group is striving for 172 CO-OPERATION CO-OPERATION 173 ni I 4 and how it proposes to reach that objective. The more farsighted of the leaders realize that the objective of co operative marketing is not merely to secure better prices for the farmers, but is to form the economic support for a satisfying rural life. Very few indeed conceive of co-operation as a road to a new social order to replace the decadent capitalist system. But these ideas and ideals are in the minds and hearts of the leaders of the movement and will bear fruit in the course of time. The Federal Intermediate Credit Banks have not been as helpful to the co-operatives as they could have been and in some places the private banks have been hostile. These circumstances have led the co-operatives to organize their own financing corporations and secure their capital direct from the investing public. In most cases this method has proved very satisfactory and will undoubtedly be more widely used in the future. Credit is of utmost im portance to the farmer because of his limited financial resources. Experience has shown the vital necessity of having this credit controlled by the farmers themselves and not by bankers with widely different objectives to be served. Co-operative credit and banking is bound to expand in the future. The consumer side of the farmer's life was not overlooked. This very im portant problem was opened by Harold I. Nordby with a consideration of supply buying by co-operatives. Mr. Alanne, of the Northern States League, con tinued with an able discussion of the possibilities of the co-operative store and stressed federation and support of a co-operative wholesale. It was gen erally conceded that where there was a strong co-operative store in a country town that prices were more reasonable and the quality of the goods and services superior. The relations of producers co-operatives and consumers co-opera tives had been considered at an earlier meeting, when it was 'agreed that a jointly controlled wholesale where equals treat with equals is the most desirable relationship. The American Institute of Co-opera tion is a valuable educational organiza tion which is playing a vital part in providing co-operators with the knowl edge and inspiration they need to help them win in this struggle toward a new social order. WOMEN REAL CO-OPERATORS IN RUSSIA Very few traces of the work of women were to be found in the old Russian Co-operative Movement, but now, in line with the astonishing ren aissance in that country, the role of women has become immense. The rapid development of the movement in the last few years must be ascribed to the action of the Centrosoyus—the central organization—in urging the need for women workers as co-operators. As a result, women, who are really the pur chasers at co-operative stores, have taken a far greater interest in the so cieties. They participate in meetings, attend lecture courses and carry on active work. Sixty thousand women have been drawn into the army of co- operators ; they are helping their sisters in industry and on the farms in home life and during motherhood. News and Comment HOW MANY NECESSITIES DOES YOUR CO-OP SUPPLY? The United Co-operative Society of Maynard, Mass., handles for its members groceries, meats, furniture and baked goods in the store, and it runs a restaurant and delivers milk and coal in addition. For 1925 the figures ran something like this for business turn over: Bakery production ........$ 35,408 Store sales .............. 190,336 Coal sales ................ 49,607 Restaurant sales ......... 24,590 Milk sales ............... 62,693 And on the total business these folks made a profit of $15,406. For a town of 7,000 population this is not half bad, do you think? When the Co-op begins to sell shoes, clothing and hardware, and runs its own movie house, the members will need spend almost nothing outside their own co-operative organization. A CO-OPERATIVE CAMP Camp Nitgedaiget is one of the larg est co-operative institutions of its kind in the country. It is owned and oper ated by the United Workers Co-opera tive Association, which also owns and operates co-operative apartment houses. Now in its fourth year, the Camp oc cupies 250 acres of beautiful wooded hillside overlooking the Hudson River, near Beacon, N. Y. There could be no more remarkable location for such a summer camp. At the foot of the hill is the wide Hudson, with the mountains rising to great heights on the opposite shore. High at the back of the land owned by the campers is a reservoir from which the drinking water comes; and back of that more high mountains. The men and women, boys and girls can bathe either in the Hudson or in the artificial pool built on their own land. There are 300 tents erected, which, with the aid of several buildings, take care of 700 lodgers. A huge dining hall can accommodate 800. The average number of campers during the week is five or six hundred, but over the week ends it runs up to 800 or 1,000. During the summer of 1925 there were al together nearly 5,000 people accommo dated at one time or another. The charges for adults are $15 per week. This covers meals, lodging, blankets and all expenses. With this very small charge last year a surplus of several thousand dollars accrued, with which extensive improvements were made; and a still larger surplus this year will permit of even greater im provements. Before the summer of 1927 opens the Directors expect to put an additional $50,000 into new build ings, sewage system, casino, etc. Membership in the United Workers Co-operative is conditioned only on the ownership of two shares of stock at $5 each. But at the camp either members or nonmembers are taken and they are treated with absolute impartiality. Since the members get no special con cessions in rates or other advantages, the appeal for new members is made purely on a basis of co-operative in terest and loyalty. The fact that there are now more than 1,000 members is proof enough that this appeal is meeting with a great response. It takes 56 employees to keep the place running, most of them working in the dining hall and the spacious, clean kitchen. The cooks and assistants are given the aid of the most elaborate and costly electrical equipment to make their work easier and the handling of the food more sanitary. An educational director plans meet ings, entertainments, lectures. A well known composer gives a great deal of his time to training a chorus, instructing in dramatics, advising individuals who are interested in music. Occasionally talent comes in from the outside to give entertainment, but always without charging any professional fees. One of the noteworthy features of this camp is the excellent spirit which prevails. There is a surprising lack of friction, and apparently no factionalism. Most of the people are workers in the clothing trades of New York City, though many come from other cities in the East. The members pride them selves on their radical spirit and atti tude toward economic problems. In fact, only workers are admitted to mem bership, and all petty bosses, business men, and others who do not derive their income from labor are excluded. They even expel members who leave the ranks of the workers after joining, to enter business. All this, coupled with the ardent espousal of the causes of trade unionism and co-operation, tends to re duce to a very low minimum the indi vidualism and rampant self-interest which so often disrupts the ordinary colony or group where all classes of people are taken in. The co-operative camp is but one of the activities of the United Workers Co operative, and will be greatly overshad owed by the still more elaborate hous ing development which has one complete block of apartment houses, for 340 fam ilies, almost completed. 174 CO-OPERATION CO-OPERATION 175 ill CO-OPEBATIVES AID THE PASSAIC STRIKERS In the eastern part of the United States the co-operatives, comparatively few and small though they may be, are doing their bit for the strikers in the textile town of Passaic, N. J. During the first 25 weeks the Finnish Co-oper ative Trading Association of Brooklyn has already sent $800 in bread or cash, while the large Purity Co-operative Bakery of Paterson has regularly sent $50 worth of bread each week since the strike began six months ago. The Co operative Bakery of Brownsville in con junction with Local No. 87 of the Bakers Union has contributed 7500 two pound loaves of bread during this period. Meanwhile the Co-operative Butcher Shop of Paterson has sent into the strike area 150 Ibs. of meat twice a week for the entire 26 weeks, and the Union Co-operative of the same town has sent 62 cases of macaroni, 25 boxes of cocoa, 25 boxes of coft'ee and other merchandise. Over in Union City the Italian Work men's Co-operative and the Co-operative Italiana Moderna, two successful little store associations have been sending both groceries and cash to the strikers' relief station. From the Newark Co operative League Bakery over $200 has been sent. The Bronx Co-operative Association raised $130, partly by col lection, partly by an appropriation and in addition has collected shoes and clothing for the strikers. The Italian- American Family Association of Clifton is regularly giving relief to many of the strikers living right in the Clifton territory. Meanwhile far off in Utica, N. Y., the Co-operative Society is send ing a weekly cash donation to the Co operative Bakery in Brooklyn to be con verted into bread, and sent to the strik ers' kitchens and stores in Passaic; and from Springfield, Mass., the Co-oper ative Bakery has recently sent a cash donation. Throughout the East there are many other co-operatives quietly en gaged in rendering similar assistance to the heroic strikers at Passaic. IOWA SERVICE COMPANY DOES BIG BUSINESS Two hundred and fifty carloads of farm commodities have been handled for members since November, 1925, by the Farmers Union Service Association, Des Moines, Iowa. These goods have been sold to the farmers at practically factory prices. Sales for the period amounted to approximately $250,000, which was nearly $100,000 more than last year. Saving on binder twine alone is estimated at more than $20,000, using store prices and Service Com pany's prices for the same grade as a basis for computation. Goods handled include flour, feed, coal, salt, oil, grease, fence posts, farm machinery, and other articles. About 500 farmers have be come members and taken advantage of the services of the company. The week of May 17-22 was to be given to an effort to secure new members. A membership fee of $5 provides capital. In addition to furnishing standard farm merchan dise at low prices the Service Associa tion also pays patronage dividends. CO-OPEBATION AMONG FAKMEKS There is not a place in Oklahoma where there is a farmers' co-operative elevator, that the price of grain does not average ten cents a bushel more than it would if there were no farmers' co operative there. Many of these places ship a half million bushels of grain during the year. The difference in price, on account of having the co-opera tive elevator, at ten cents a bushel on a half million bushels is just fifty thou sand dollars. Where the farmers' co-operatives buy cotton seed, the price usually runs at least ten dollars a ton higher than in those places where they do not buy. This means about five dollars a bale more that the farmers get around a town, where the co-operative buys seed, than they would if the co-operative was not buying, and yet many times the stockholders of the co-operative forget this five dollars a bale dividend that they receive every time they take a load of cotton to the gin. There are many towns in Oklahoma that in normal years gin ten thousand bales of cotton. A difference of five dollars on the bale means that the farmers get fifty thou sand dollars that they would not get if the co-operative did not buy seed. The same is true where the co-opera tive buys produce. The price is always better and the farmers take dividends home with them every time they bring in the eggs, the poultry, and the cream. We maintain that every time you drive into town and up in front of that co-operative elevator, that co-operative gin, or that co-operative store, that you should lift your hat, bow low and be ex ceedingly thankful that that institution exists, and you should guard and pro tect it like you would your own family— be as loyal to it as you would be to your wife.—Oklahoma Farmer. THE AMALGAMATED CREDIT UNION The states of Massachusetts and New York together have close to 200 co-opera tive banks. They are called Credit Unions. One of the new organizations is the Amalgamated Clothing Workers' Credit Union in New York. It has over 1300 members. In the year 1925 it made 1180 loans amounting to $209,831. It paid a 9 per cent dividend at the end of the year. Its paid up capital stock was $135,000 and its total resources were over $150,000. This is a co-operative bank for people of small means. A mem ber joins by buying a share of stock for $10. Having become a member with satisfactory endorsements, one can bor- how up to $2,000. Loans are made on character instead of property collateral. Experience in co-operative banking leads to more co-operation. For the past two years this banking association has bought at wholesale the coal for all its members who own their own homes. Now the Union is working out a health insurance plan whereby each member will contribute $5 yearly for insurance. This will give him $10 a week for ten weeks during a year when he is sick; a payment of $100 when he has to have a major operation; and in case a member contracts tuberculosis he will receive an extra $100. Each member may be exam ined once a year by a competent doctor. The family of a deceased member re ceives $100. This credit union is doing what every credit union should do; expand into larger services for its members. IS LABOR BECOMING LESS MILITANT? According to Mr. Abraham Epstein, who writes in a recent issue of Current History, it is. As Mr. Epstein has him self devoted years of his life to the labor movement, he should know something about it. And the reasons for this decline of militancy are the increase in welfare schemes promoted by the large corpo rations of America. His reasoning is as follows .- American labor unionism has never had the idealism and ideology of the European movement. Its chief interests have been in more pay, shorter hours, better conditions. Since the eight or nine hour day is now almost universal there is no further effort in that direction. The large ele ment of non-union labor prevents any great increase in the scale of union wages. Conditions within the industries have been greatly bettered by improve ments voluntarily offered by the capital ists themselves—improvements of a na ture that labor itself never dares to ask for. All in all, the welfare work done by large corporations has been a tremen dous force in stabilizing the industries where such welfare work is done. Such welfare work has spread most rapidly in iron and steel industries, metal trades, transportation, public utilities, paper and publishing. In iron and steel, strikes have dwindled from 72 in 1916 to 7 in 1924. In the metal trades they have fallen from 547 in 1916 to 57 in 1924. In paper they decreased from 54 in 1916 to 12 in 1924. In such industries as textiles, cloth ing, building trades and mining, how ever, where such welfare work is not extensive, the number of strikes remains about the same from year to year, fluc tuations occurring only as economic conditions vary. The only logical deduction to be made from all this is that company group in- 176 CO-OPERATION surance, vacation bonuses, sick and death benefits, company playgrounds, etc., etc., are all devices employed by the corporations to anticipate some of the chief demands of labor unionism and let the credit for such improved conditions accrue to the companies in stead of to the labor movement. In the countries of Europe where the workers have long had their own co operative insurance, banking, housing, buying, and recreation, the corporations do not have any such weapons to use against labor unionism, and so the labor movement goes ahead rapidly. On the other hand, the co-operatives help to develop that social idealism so lacking in the American labor movement, yet so essential for all genuine progress. CO-OPERATIVE BIRTHDAY PARTY On June 10th, The Women's Co-opera tive Guild of Minneapolis, celebrated their Fifth Birthday Anniversary by inviting the Directors of the Franklin Creamery and the Education Committee to a delightful luncheon. Almost a hun dred were seated around the four long tables, the cake was cut by a representa tive of the Co-operative League, Mrs. M. W. Cheel, who five years ago visited the Guild when it was first started. All the past officers as well as the President spoke of the growth and accomplish ments of the Guild, and its desire to work harder than ever to spread the knowledge of Co-operation in the city, and to help the Franklin in every pos sible way. Mr. Nordby, President of the Franklin Creamery, promised to call on the women oftener in future for definite responsibilities, and regretted that the Board had not fully realized the im portant things the Women's Guild was doing and could do for the Movement. ROLLING STORES Out in Kennewick, Washington, one of the fertile farming sections of the far Northwest, the co-operative society, which runs a large grocery and general merchandise store, recently equipped two complete stores on wheels which go out every day about 40 miles into the country with a full line of goods, bring ing to the farmers' wives every neces sity at the same prices paid at the town store. Here is a case of the Co-op getting ahead of the chain stores and capturing the trade and the friendship of the women by furnishing "quality" and real service at the lowest possible price. DOLLAR DISTRIBUTION According to data compiled by the California Fruit Growers' Exchange, the consumer of every dollar's worth of oranges and lemons grown and sold by the exchange pays 25.4 cents to the re tailer, 7.5 cents to the jobber, 15.1 cents for transportation, 1.4 cents for selling including advertising; 8.8 cents for picking, hauling, and packing, and 41 cents to the grower for the fruit on the tree. From the exchange's position as to the destination of the "savings" realized by increased efficiency and lower transpor tation rates it is quite evident that the consumers must organize their own co operatives to secure any reduction in prices. Under the Rochdale system of con sumers' co-operatives the workers would appropriate to themselves the 32.9 cents paid to retailers and jobbers, less the actual costs of distribution. — (Industrial Weekly, Syracuse.) FARMERS WIN FIGHT FOR OWN BANK In CO-OPERATION for April appeared the story of the long fight the farmers of Osage County have been making to get permission to run their own bank. Dissatisfied with the service of the pri vate bankers, the farmers in and about Lyndon, Kansas, had petitioned for the right to organize a bank of their own, and they had twice been turned down by the Banking Commission. The news now comes through that in passing on the matter the Supreme Court of the State has overruled the Banking Commission and ordered a charter issued to the farmers. The lat ter held their big celebration in honor of the victory on July 24th. CO-OPERATION 111 Book Review "BUILDING AND LOAN ASSOCIATIONS" By Horace F. Clark and Frank A. Chase. The Macmillan Company, 1926. $4.00 One of the most puzzling questions that co-operators can raise is "Are the Building and Loan (or Savings and Loan) Associations a Part of the Co-op erative Movement?" The person who is looking for the answer to that question cannot do better than read this book and then answer the question for himself. That the Building and Loan Move ment is very powerful is evident. There are more than 12,000 of these institu tions throughout the country, their assets amount to more than five billions of dollars, and they have a combined membership of 9,900,000 men and women. Almost this entire business has to do with the encouraging of thrift on the one hand, and the building of homes on the other. There are one-third as many B. & L. associations in the U. S. as there are banks. However, nearly 6 per cent of the banks chartered in this country since 1863 have failed, while less than 1 per cent of the B. & L. Associations have failed. In many particulars these are thoroughly co-operative in structure. They are, in the first place, owned and controlled by their customers instead of a small group of investors (as is the case with private banks). Though vot ing is usually by share rather than by person, still the distribution of shares is so wide that the democratic features are pretty well preserved. One of the best definitions of the associations offered in this book is as follows: "A building and loan association is a mu tual co-operative financial institution usually operating under articles of in corporation issued by the state, and composed of members who have thus as sociated themselves together for their mutual benefit and financial advan tage." They are mostly neighborhood associations and depend very largely upon mutual acquaintanceship and con fidence. They are absolutely for non profit. Yet in spite of the almost complete co-operative structure of these organi zations, we never find them lined up with the co-operatives on issues which seem important to the latter. They go their own way, handle their own busi ness, and associate generally with no other democratically controlled type of business activity. I think the reason for this lack of co operative spirit among the leaders of this powerful movement is to be found in the type of leadership itself. Almost universally it is the "responsible," the "respected" business men of the com munity who hold the chief offices in the B. & L. Associations. These men sup port and promote such organizations in much the same spirit as they support and promote the churches, the golf club and the local charities—because all these institutions help to "stabilize" the com munity, make the less fortunate people more contented and happy. We remem ber that in Germany it was many of the leaders of the Schulz-Delitzsch banking movement who most bitterly fought what they called the "Socialist" co operative store movement and refused to become a part of this movement. Which is quite natural, considering that the leadership of these banks was so largely composed of petty business men. Here we find the reason, doubtless, for the aloofness of the Building and Loan As sociations in our own country. Officials of such associations who are at the same time owners of private grocery stores, bakeries and department stores are going to be hostile to the co-operative store movement, not work with it. This book is an excellent manual for the student of this interesting movement among business men to "co-operate." The history of the movement is traced carefully, laws of all the states are analyzed, the various types and forms of B. & L. Associations classified and compared in great detail. Those of us who are interested in credit union development can learn a lot from the history of the Building and Loan Associations. C. L. 178 CO-OPERATION CO-OPERATION 179 I1!1 I District Leagues FIFTH CONVENTION OF NORTHERN STATES LEAGUE As was fitting and proper, the Fifth Annual foregathering of delegates of the Northern States League was the big gest and best yet. Fifty-one voting delegates were present, and 12 fraternal delegates and alternates in addition. One of the important decisions was to employ Mr. Alanne, the Executive Sec retary, full time after September 1st. Another was to publish the League paper monthly instead of bi-monthly as heretofore. In addition to taking in the New Era (Insurance) Association with its 34,000 members, eleven other new societies were admitted to membership. The Directors were empowered to con duct a Training School in 1927, and were authorized to continue publica tion of a Year Book next year. The Executive Secretary was also authorized to try to arrange local training schools for directors of co-operatives in various parts of the state, as he travels about. The budget for next year calls for $9,000 and various recommendations were made for increasing the revenue. Various minor changes were made in the Constitution, one of which increases the number of Directors from 9 to 11. The newly elected Board is com posed of H. I. Nordby, Minneapolis, Pres. A. A. Seigler, Duluth, V-Pres. V. S. Alanne, Minneapolis, Sec'y. E. H. Anderson, Minneapolis, Treas. F. Burandt, Minneapolis. Eskel Ronn, Superior, Wis. George Halonen, Superior. Oscar Corgan, Hancock, Mich. H. V. Nurmi, Virginia, Minn. J. F. Emme, St. Paul. E. E. Branch, Grand Rapids. Co-operative conventions of this kind are usually comparatively free of serious controversy. It takes the political par ties or the labor unions to develop great factional fights in their conven tions. The N. S. League kept up the co-operative tradition of keeping its disagreements limited to two subjects. Opposing resolutions were presented on the subject of political neutrality in the co-operative movement and the one finally adopted declared the co-operative movement to be a part of the general labor movement. A resolution calling upon the International Co-operative Al liance to organize united action of the Amsterdam International of Trade Unions, the Red International of Trade Unions, and the I. C. A. to fight inter national Fascism was passed in spite of some opposition. Reports since August 10th indicate that 14 new societies have joined the N. S. League since April, bringing in an additional 35,823 members. 100% CO-OPERATORS AT CLOQTJET The Cloquet Co-operative Society, of Northern Minnesota, is not to be outdone by the societies at Milford, N. H., Maynard, Mass., Fitchburg, Mass., or Wentworth, Wisconsin. The following impressive honor roll gives the names of their leading mem bers and the total amount of purchases made at the store in 1925. It must be borne in mind that this society sells farm machinery and farm supplies as well as household necessities. E. E. Hallett............... .$8,886.80 Malkus Lehte .............. 4,174,05 Emil Laine ................. 3,832.77 Charles Wuerio ............. 3,348.20 Gust Ilonen ................ 3,160.08 Sam Himango .............. 8,124.86 Tom Gustafson ............. 1,646.17 John Partanen ............. 1,315.53 John Seppanen ............. 1,314.24 Charles Kallinen ............ 1,285.39 Evert Simila ............... 1,261.10 Charles Rautio ............. 1,240.69 Alfred Lumppio ............ 1,202.05 Andrew Granhelm .......... 1,172.62 Gust Luokkala ............. 1,150.06 Oscar Laine ................ 1,134.26 Herman Isaacsen ............ 1,103.38 Paul Lyytinen ............. 1,076.47 Jack Mattsen .............. 1,056.84 Ed. Solem .................. 1,085.03 John Salo .................. 1,023.51 Alex. Saukko ............... 1,010.51 Frank Gusinda ............. 1,000.50 Twenty-three families with a trade at the store of more than $1,000 each. It is a record pretty hard to beat. Directors' Page WHAT DO YOU MEAN—" TURNOVER " The more progressive managers try to get a rapid turnover of stock. But perhaps they do not know that there is a Turnover that is more important than Stock Turnover. It is Capital Turn over. Two managers of co-operative stores each did a business of about $50,000 a year. Each carried an inventory of goods which averaged around the $4000 mark. They operated on just about the same gross margin or mark-up. All of which means that their Stock Turnover averaged just about the same. But the first fellow was doing busi ness for a membership who had $10,000 invested in the business most of it in delivery equipment, fixtures and build ing. The second had a membership with paid-in capital of only $5,000. So it didn't mean much after all, that equal ity of turnover of stock. For the former paid interest on twice as much capital as the latter. Manager Number One turned his entire capital only five times a year, while Number Two turned his ten times. Some difference! Co-operative Central Exchange Wholesale Grocers and Jotters, Bakers We supply goods to Co-operative Societies OXliY. We are owned and controlled by Co operative Societies. We are organized to enable Co-operative Societies to do collectively what they cannot do individually. Offices & Warehouses Winter Street and Ogden Avenue Bakery Plant jVorth Fifth Street & Grand Ave. SUPERIOR, WISCONSIN But the problem is even more involved than this. Manager One gives his customers plenty of credit. But the wholesalers from whom he buys goods make him pay up in ten days. Therefore, though his turnover of stock is fairly good, his turnover of capital is quite a bit slower than his turnover of goods. He pays for what he buys in ten days, but he doesn't collect for what he sells until twenty days have elapsed. Therefore his turn over of money invested in the business is even slower than four times a year. Manager Two on the other hand gets credit from his wholesalers whenever he needs it (which is much of the time). But he sells only for cash. Therefore he turns over two or three times each month the money which the wholesalers loan him only once. He is making good use of the wholesalers' money as well as of the members' capital! And so his actual Capital Turnover is considerably more than eight times. 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 The Canadian Co-operator Brantford, Ontario, Canada The organ of the Canadian Co-onera- tive Moi'ement, owned toy and con ducted under the auspices of The Co-operative Union of Canada. Published monthly 75c per annum CO-OPERATION, 167 West 12th Street, New York. Please send CO-OPERATION for one year to Name ................................... Address................................. $1.00 a year. 380 CO-OPERATION PUBLICATIONS —OF— THE CO-OPERATIVE LEAGUE HISTORICAL 3. Story of Co-operation .............$ .10 7. British Co-operative Movement..... .10 38. Consumers' Co-operative Movement in U. S., 1926................. .10 39. Consumers' Co-operative Societies in N. Y. State (Published by Con sumers' League ................ 59. Co-operative Movement in Europe. . 64. Progress of Co-operation in United States ...................... Per Copy Per 100 CO-i MONTHLY PUBLICATIONS .10 .05 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 Denned... .10 9. How to Start a Co-operative Whole sale . . . . . . . ................. .10 27. Why Co-operative Stores Fail...... .02 2. Co-operative Store Management..... .10 14. How to Start and Run a Women's Guild ....................... .05 15. How to Organize a District Co-opera tive League ................... .10 29. Credit Union Primer (By Ham and Robinson). . . . . . . ............ .50 43. Co-operative Housing ............. .10 50. A B C of Co-operative Housing. . . . .10 51. Model Lease for Co-operative Apart ment House ................... .10 MISCELLANEOUS 16. Model Co-op State Law. . .......... .10 46. Producers' Co-operative Industries. . .10 11. Control of Industry by the People through the Co-operative Movement 12. Credit Union and Co-operative Store 33. Credit Union and Co-operative Bank 13. The Place of Co-operation Among Other Movements .............. 34. Co-operative Movement (Yiddish).. 30. " When the Whistle Blew " (Story, by Bruce Calvert) .............. .06 41. Social Aspects of Farmers' Co-opera tive Marketing (By Benson Y. Landis). .................... .25 42. Co-op Homes for Europe's Homeless .10 53. Real First Aid for the Farmers.... 55. A Better World to Live In. ....... 57. How a Consumers' Co-operative Dif fers from Ordinary Business.... 60. The " Moral Equivalent " of Jazz. . . 62. Buttons (League Emblem in 3 colors) 54 inch diameter. ....... 63. Sign or Transparency of League Em blem. Green and gold, 8 in. diam. . .10 .05 .05 .25 .02 .05 .05 .02 .02 ONE-PAGE LEAFLETS $6.00 6.00 6.00 4.00 .05 4.00 4.00 2.50 1.00 1.75 125 1.00 3.00 .25 15.00 (One Cent each; 50 Cents per 100; $2.50 per 500; $4.00 per 1,000.) (1) Principles and Aims of The Co-operative League; (18) 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 1; (28) Do You Know About Co-operation in Europe?; (40) Have You a Committee on Education and Recreation?; (44) What Is the Co-operative Move ment?; (45) Schools and Stores; (47) A Man's Right to a Job; (48) Tips to Co-operators; (49) The Way Out; (61) Co-operation Brings Disarmament. dred ubstion - HOME CO-OPERATOR, Tpa^ST' '." " sVoo'cer \nn INTERNATIONAL CO-OPERATIVE BULLETIN (Pub. by The I. C. A.) ......... .Per Year, $1 50 BOOKS »i,Tue f0'1?™11^ books are recommended as containine the best discussions of the modern Co-operative Mov? ment. They may be ordered through The League- Bergengren, Roy F.: Co-operative Banking, A ' Credit Union Book .............. $3 00 Blanc, Elsie T.: Co-operative Movement "in Russia ....................... . 2 50 Brightwill, L. R.: Animal " Co-op" Book—For Children. ....................... Faber, Harald: Co-operation in Danish Agricul- ture, 1918 .............. o ^e Gebhard, Hjmnes: Co-operation in Finland, 1916 Gide, C.: Consumers' Co-operative Societies American edition and notes, 1922. Cloth $2.00; paper bound ................... ' Hall, Prof. Fred: Handbook for Members of Co operative Committees ........... Harris, Emerson P.: Co-operation, The "Hone of the Consumer, 1918. Paper bound Holyoake: Rochdale Pioneers .. Howe, Fred C.: Denmark, a Co-operativ'e'Com- monwealth, 1921 ....... Jessness, O. B.: Co-operativ'e" Marketing" of Farm Products .................... Madams, J. P.: The Story Retold!!!! !" Nicholson, Isa: Our Story................ Owen, Robert: Autobiography ..!!!!!.!!!!!! Potter, B.: Cooperative Movement in Great Britain .......................... Redfem, Percy: The Story of the C. W. S.! Redfern, Percy: The Consumers' Place in So ciety, 1920 ........................... Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918 ...................... Smith-Gordon and O'Brien: Co-operation in Denmark. . . . . . . .................. Smith-Gordon and O'Brien: Co-operation ' in Many Lands, 1920 .......... ;........ Stolinsky A.: The Co-operative Movement." (in Yiddish)............................. Waibasse, James P.: Co-operative Democracy" Webb, B. and S.: The Consumers' Co-operative Movement, 1921. Board, $2.00; cloth.... Webb, Catherine: Industrial Co-operation, 191?! Woolf, Leonard: Co-operation and the Future of Industry ............................ Woolf, L.: Socialism and Co-operation..... ! Co-operation in Great Britain and Ireland, paper CO-OPERATION, Bound Volumes, 1915 to 1925 inclusive, each ......................... Transactions of Second American Co-operative Congress, 1920 ......................... Transactions of Third American Co-operative Congress, 1922 ......................... Transactions of Fourth American Co-operative Congress, 1924 ......................... Northern States Year Book, 1925. Paper..... The People's Year Book, 1926. Cloth, $1.00; paper bound ........................... 2.00 2.00 .90 2.00 .60 2.00 2.50 !25 .50 1.00 2.00 1.00 1.00 1.50 2!so 5.00 1.50 ISO !25 1.25 1.00 1.00 1.00 .20 .60 (Ten cents postage should be added for books which cost more than $2.00, and five cents for the smaller books.) (007CRAT10N A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in voluntary association, produce and distribute for their own use the things they need. Published Monthly by THE CO-OPERATIVE LEAGUE 167 West 12th Street, New York City J. P. WARBASSE, Editor Entered as Second Class matter, December 19, 1917, at the Post Office at New York, N. Y., under the Act of March 3, 1879. Price $1.00 a year. VOL. XII, No. 10 OCTOBER, 1926 10 CENTS THE FRANKLIN AUDITORIUM :on is MEETING PLACE OF THE CO-OPERATORS ATTENDING THE FIFTH NATIONAL CO-OPERATIVE CONGRESS November 4, 5 and 6 Names of all Delegates should be sent to The Co-operative League, 167 West 12th St., New York City, immediately. 182 CO-OPERATION Minneapolis and Its Many Co-operatives The Northwest boasts of having nearly half the co-operatives in the United States. Minnesota alone has 1,300 associations, more than 10 per cent of the total. Minneapolis, the chief city in this vast territory, contains more co-opera tives than any other city in the West, perhaps than any other city in the entire country. Here is where The Co-operative League is to hold its Fifth National Congress. The following is a brief sketch of the co-operatives in this center of co-operative activity. First and foremost among the consumers' associations is the Franklin Co-operative Creamery Association, largest in the country. The history of this institution is interesting not only because it stands alone, a leader among many successful consumers' co-operatives, but for the good influence exerted in behalf of the thousands whom it serves. The idea of the Franklin originated in 1919 with a small group of milk drivers and creamery workers. The first Franklin plant was completed and ready for operation on March 25, 1921. On that day 18 milk wagons started on their first trip, delivering mill?:, cream and butter to Minneapolis consumers. After only a few months the capacity of this plant was taxed to the limit, and in order to take care of the rapidly increasing demand for Franklin products it was necessary to build a second larger plant in a different section of the city. The great Creamery at tlie North end of the city. This is one of the largest and best equipped dairy buildings in the entire Northern part of the coun try. Visitors from all parts of the United States and from dozens of European countries pass through the doors each year and are shown through the building. This is the first building erected by the Franklin Association back in 19SO, when there was very little money in the treasury, only a small membership, and hopes for little more than enough business to keep half a dozen wagons busy. The plant ivas running to ca pacity before that first year was out, and has been run ning to capacity ever since. CO-OPERATION 183 ' f- The old-fashioned tin milk can JsicJsed around the plat form of the freight station is a famil iar sight to all of its. the Franklin Co-operators were not satisfied with the unhygienic can, so they are replac ing it ivith these huge glass - lined milk tanlss. They are built like ther mos bottles and Jseep the milk at an even tempera ture during its trip over the roads from country to city. To-day, with two of the largest creamery buildings in the city; with nearly 200 delivery trucks and wagons covering every section of Minneapolis; with more than 400 employees, the Franklin Co-operative Creamery Association, after four brief years, is acknowledged the largest distributor of dairy products in the Northwest, serving milk, cream, butter, buttermilk, cottage cheese and ice cream to more than 50,000 patrons. The output of milk and cream, converted into quarts, is 65,000 quarts daily. The volume of sales is now at the rate of $4,000,000 annually. With total current and fixed assets of $1,429,000, a membership of well over 5,000 shareholders, and other statistics cut to the same huge pattern, this institu tion and its work becomes the chief point of interest for co-operative sightseers who go to the Congress. There is a most interesting child health clinic, a Franklin band, the Franklin male chorus, the huge fleet of milk wagons and trucks; its army of 437 employees; its enormously expensive machinery for pasteurizing, bottling, butter making, ice cream manufacturing, refrigeration; its two model dairy buildings; all the other features for which we have no space here. In many respects even more significant than the Franklin is the Northern States Co-operative League, which has its headquarters at Minneapolis. This is the. educational heart and center of the movement in these North Central States, the motive power for the, training schools which have been held for three years, the bi-monthly publication, the correspondence school, the statistical studies of the movement in Minnesota. The physical property of this league is very small, but the work large and prophetic. One of the smaller consumers' societies is the Economy Fuel Company, barely three years old, but with 300 members and a business of $50,000 in coal and coke distributed to 1,600 customers last year. The Associated Textiles is a clothing company organized under the co-opera tive laws of the state in June, 1923. There are, 415 stockholders but upward of 30,000 customers for the clothing and other products sold. Most of the selling is done by salesmen working on commission who travel out into the agricultural regions. The Union Co-operative Bakery was organized only one year ago by striking union bakers. As most of the stock is still in the hands of the bakers 184 CO-OPERATION "•!•*-/ The Women's Co-operative Guild of the Franklin Association is one of the four or five educational and recrea tional organisations of the Co-opera tive. These women have maintained their organization for five years. They meet once a month, read and discuss co-operation, do community work of various kinds, and help promote Co operation in Minneapolis. themselves, this is more of a co-partnership than a co-operative, but a sincere effort is being made to put the consumers in control. The Modern Book Store is barely yet established, but is organized as a strict consumers' institution. The Transportation Brotherhood's National Bank is a labor bank similar to other banks of this character throughout the country, and of course only semi- co-operative. Resources are now in excess of 2% millions, though the bank is not yet four years old. There are over 5,000 depositors. The Union Building and Loan Association is more nearly a genuine co-opera tive than most of our credit associations going under this name. Most of the loans are made for building purposes. The savings department receives deposits in very small denominations and pays 5 per cent interest. Sixty per cent of the 1,600 members are trade unionists. And then there are the headquarters for extensive co-operative marketing associations. The Co-operative Wheat Pool sells wheat produced by about 20,000 farmers throughout the state. The Twin Cities Milk Producers' Association (source of supply for all the Franklin milk) has its large new headquarters building just over the city line in St. Paul. With a membership of more than 18,000 farmers, an unusually efficient and social-minded leadership, and an excellent system for handling both its fluid milk and its by-products, the asso ciation ranks among the very best of its kind in the United States. The relations with the Franklin Association of. consumers are most friendly. The Land 0'Lakes Creameries is the largest butter marketing organization in the world, handling the products of 450 local creameries throughout the state. , This picture ivas taken more than three years ago and, therefore, pre- fents only a small number of the wagons actually in use to-day for the deli/very of FranMin milk, cream and butter. Two huge stables house the 200 horses kept on the Franklin payroll. CO-OPERATION 185 The Franklin Band was organized in 1923 with IS -members, and is now composed of 22 -members. With re hearsals every week and concerts before church, social and civic or ganizations throughout the Twin Cities, the name of this musical or ganization is well known to all groups and classes. One-half of the money re quired for purchase of the instruments was contributed by the Creamery Association. Olaf Halten is the ag gressive co-operator who directs the Band. .^V £.".< -V** ' ' The association sells more than 75,000,000 pounds of its "93 score" (best grade) butter in seventy markets throughout this and other countries. Nearly 7 million pounds is put into prints each week and shipped in carload lots direct to eastern jobbers. Yearly sales total more than $1,000,000. There have been other co-operatives in the city which have "winked out." And there will be still others in the future. Delegates to the Fifth Congress, however, will find more than enough co-operative sights to keep them busy between the sessions held at the auditorium of the North Plant of Franklin. THE LARGEST CONGRESS EVER Early returns from the societies affiliated with The Co-operative League indicate a much larger attendance promised for this than for any other national Congress in our history. In the middle of September, when these lines are sent to the printer, there are in the offices of The League credentials from 70 delegates. Forty-five of these are from the territory of the Northern States League; 12 from the Eastern States; 10 from the Central States, and 3 from the far West. In addition to these, there are promises of many fraternal delegations. Such returns fully a month and a half before convening of Congress are most inspiring. If ever the co-operators have had a chance to do some genuinely constructive legislation in behalf of our movement, they have that chance at this 1926 Congress. The ISO wagons and trunks now on the road distribute mill:, cream, butter, cheese or ice cream to the tune of more than $10,000 per day. This means the handling of nearly 900,000 units per day (a unit is a bottle of milk or cream, a pound of butter or a package of cheese or gallon of ice cream). 186 CO-OPERATION There are co-operatives and co-operatives in Minneapolis. Not all are as large and as flourishing as the Franklin. This is the head quarters of the Economy Fuel Company, one ef the smallest of them all. The picture shows how humble a beginning many of our societies have. MANAGERS' CONFERENCE ON WEDNESDAY On the Wednesday (November 3d) preceding the opening of the Congress, the Northern States Co-operative League is holding its Fourth Managers' and Directors' Conference, and all mana gers from other parts of the coun try who are interested to take part in a discussion of the problems of the man ager and to meet more intimately the leading co-operators in Minnesota and Wisconsin are cordially asked to attend. •TJ To be sure, this conference will deal in some measure with problems of the stores in the North Central territory. But it will deal in larger measure with problems that are vital to managers in any part of the country. Men at the head of stores in the Eastern, the Cen tral or the Western States who are going to attend the Fifth Congress which begins on Thursday morning, November 4th, might profitably start a day early and sit in at the conference that takes place on Wednesday. i The laboratories of the Franklin plants are the pilot houses from which the executives steer the course of this giant co-operative. Raw materials are carefully analyzed and tested for butterfat content, sediment, acidity and bacterial count. It was the publication of these figures for the first few years that awoke the milk consumers to the importance of the great work Franklvii was doing to improve, the quality of dairly products in the city of Minneapolis. CO-OPERATION 187 Vital Issues THE MIDDLEMAN ENDORSED Mr. William M. Jardin, U. S. Secre tary of Agriculture, whom Mr. Coolidge might call "Secretary of Middlemen," told the National Association of Credit Men at the Hotel Commodore, New York, that the middleman is necessary. "Agricultural problems," he said, "have shifted from production to the field of distribution.'' The secretary has to talk about fields even though the farmers do not plow them. He also told the mem bers of the National Association for Collecting the Bad Debts of the Middle man's Economic System that, "the machinery of distribution is just as essential as that of production." Of course, the one thing that does not occur to the secretary is that consump tion is important too. The idea of these secretary fellows is_to get wheels under the farmers' stuff and get it going some where. Pulling and shoving it around is the big game. Give as many people as possible a chance to get their hands on it. Warehouse it, elevate it, refrigerate it—do anything to it, but keep it going from one seller to another, from garret to cellar, for trading, after all, is the great business of the nation. That is what secretaries are for. It does not make so much difference where the produce comes from or where it is going. It may be destined for the dump heap. Some of it is sent to the sea to be thrown overboard to keep up the prices. Some of it just gets worn out being pushed and pulled around and never is consumed. It is good so long as somebody can be found who is willing to buy it because he thinks he knows where he can sell it for a higher price. Finally when it has served its purpose and can be bought and sold no more, it goes to the scrap heap or to somebody to use. Mr. Jardine is right. As things go to-day, the trader is the important fac tor. The producer and the consumer are only necessary incidentals to his business. And both of them are more or less of a nuisance to the trader. The producer, is always howling because he can not start the game with higher prices, and the consumer constantly complains because he has to pay too much. If the great trading business of the land could get its commodities with out having them produced and did not have to be bothered with the consumers, who need them, Mr. Jardine would be in his element. What the tight-rope walker needs is some sort of a tight-rope that does not have to be fastened at both ends. THE FARMERS OF ALBERTA Alberta, Canada, is a farming country and the farmers control the politics. We think this is better than having the politics controlled by bankers and middlemen as is the case most every where else. It is the same as a labor government. Since the consumers are not organized to control economic affairs the next best thing is the workers and farmers. This is good because the farmers or workers think in terms of economics rather than politics. President H. W. Wood of the United Farmers of Alberta knows that politics is dangerous. He says: "The political party is not and can not be a constructive force. Under the political party, citizenship is divided against itself and forces thus constituted inevitably engage in warfare with each other. A political party beside being a fighting force is not democratically organized or democratically controlled. It can never hope to get the different elements of citizenship together in con structive effort." Still the farmers of Alberta should be warned against too close contact with politics. Their leader knows the danger. They may, however, take into their own hands the useful things that their politi cal machinery is trying now to do for them. If they really mean business and are truly conscious of the dangers of politics, we may see them carrying on in their voluntary co-operative societies the 188 CO-OPERATION elevator business, the buying and market ing, the banking and credit, and finally the schools, and the recreations. If they do not do this, the farmers will become more and more enmeshed in the tangles of political action until by and by they are split into parties, each seeking privilege, preferment, and per quisites ; and their end will be tinctured with the wormwood and gall of frustra tion and disillusionment. J. P. W. VOTING BASED ON PATRONAGE RATHER THAN INVESTMENT The Failsworth Co-operative Society of England has just made a most note worthy change in its constitution. It has ruled that mere ownership of capital stock is not itself sufficient to qualify one for voting membership in the society. Unless the share-holding member is him self a trader at the co-op store, he is not qualified to vote upon co-operaiive policies. Therefore, the member who does not spend at least $25 per quarter at the stores is not a voting member. The actual consumers now control this interesting society, and the mere seeker of interest on investment is disenfran- chased. Here is a blow indeed at the capitalist principle which puts the in vestor ahead of everyone else. According to one of the members of this co-operative the membership at large is quite committed to this position. "It is the trade of the society that lias built up the reserves, which has actually created the capital which each ind.ivid.ual member holds in the society." The Failsworth Society is now in the position of being able to pay out every penny of share capital and st.ill retain its business and hold a considerable amount of surplus capital. In other words, the investment of the sharehold ers has now served its purpose and could very well be returned to them, and the business could continue to sail along with only its own reserve funds. The aforementioned member closes his remarks with these significant words: "There is no intention to disparage the value of capital; like every other com modity it is entitled to be paid accord ing to the services it renders, but mod ern thought is now placing it on a much lower pedestal, and its position in in dustry generally is more of a servant than a master.'' Would that the latter were true! To day it is more of a prophecy of the future we hope for than a statement of fact for today. These pioneers in Fails- worth are the kind of men and women, however, who make such prophecies come true. They are hammering out the new economic truths to which at a far dis tant date the economists in our schools and colleges, perhaps even the men that sit in our parliaments and houses of rep resentatives will consent to pay homage. LABOR BANK AGAIN ON THE WRONG SIDE The staunchest supporters of the labor banking idea constantly tell us that we should not worry over much that these banks are not co-operative. '' They are co-operative in spirit, and as soon as the laws permit, will be co-operative in structure." We have always been doubtful of these rosy predictions. And every few months a new story comes to our attention to prove that our doubts are, at least in part, justified. The latest tale is from Seattle. An article in the Illinois Miner informs us that a subsidiary of the labor bank owned by the Brotherhood of Locomotive Engineers of that city has just perfected a merger of eight of the largest steam laundries in the city, with a capitaliza tion for the new company of $2,000,000. The item includes this statement: "No announcement has been made by the new corporation as to wage relations." Who is going to gain from this kind of business? The workers? Not by a jug full. The consumers of the laundry service ? Perhaps, to a minor degree, if the new company is more efficient than the eight old ones. But the chief winners are the bankers and other investors. Of course it is the trend of the times: this creation of more and better mergers. But it is a sorry biisiness for Labor to be messing in. C. L. CO-OPERATION 189 The Producers and Consumers in the Co-operative Movement FROM THE VIEWPOINT OF THE CO-OPEEATIVE OEGANIZEE By A. W. WAEINNEB Educational Secretary, Central States Co-operative League Co-operation is a theory of economics which, so far as it has been tried, has proven to be a highly practical and work able one. To the vast, majority of the people in America it is comparatively a new movement. Most of them never heard of it until a few years ago and their present knowledge of it comes largely from the publicity that has been given the producers' co-operative move ment, especially as applied to the market ing of farm products. Knowledge of the consumers' co-opera tive movement, which has not enjoyed this publicity, is confined almost entirely to comparatively small groups located in our industrial cities and towns. The exceptions are the few states in the North and West where the farmers, through the efforts of a small group of intelligent leaders, are beginning to understand the real significance of con- sinners' co-operation. There is such a vast difference between the aims and purposes of the two move ments that it is really unfortunate that they should be known by the same name. The careless bandying about of the name "co-operation" and the tendency to apply it in every conceivable form of joint action is responsible for much of the confusion that exists concerning it. There is, of course, a good reason for the publicity that has been given pro ducers' co-operation and the almost total silence on the part of our various agencies of publicity regarding con sumers' co-operation. The reason lies in the difference in the fundamental pur poses of the two movements with which this article will deal. The more vital of the fundamental differences underlying the two move ments can be explained briefly and in terms not hard to understand. If we will get these fundamentals firmly fixed in our minds they will serve to keep us thinking straight most of the time, no matter what phase of co-operation is under consideration. Producers' co-operation has as its fundamental object the increasing of profits for the producer. This is true whether it be applied to farmers' organ- iations for marketing farm produce or industrial workers' organizations which own and operate factories. (The latter is in reality syndicalism though it is often confused with co-operation, and is loudly proclaimed by some of our so-called "co-operative authorities" as the panacea for all the workers' economic ills.) A secondary object in both forms of organiation is the improvement of working and living conditions. Some of them carry on educational and social activities, but the primary object, that of increasing profits or the individual's income from his labor, remains para mount always. The syndicalist likes to express it in higher sounding terms such as: "giving the worker the full social product of his toil." Both of these phases of producers' co-operation are based on the theory that our economic ills are all due to "ex ploitation at the point of production." Their remedy lies in increasing the income of the worker. Their knowledge of economics seems to begin and end there. It seems never to have occurred to them that there is nothing in their system to prevent the tradesman, the distributor of their products, from taking their increased incomes away from them in increased profits. Neither does it seem to have occurred to them that whenever the price of any com modity is increased it is the consumer who pays the bill, and that they are a 190 CO-OPERATION part of the universal body of consumers. An increase in the income of any group means that every consumer will have to pay a higher 'price for the product of that group, thus reducing the purchasing power of every consumer's income. The defenders of this theory offer as a solution of this problem the elimina tion of the middlemen. They contend that by dividing between the producer and the consumer the profit that he now takes, the producer will receive more for his product and the consumer will not be required to pay a higher price. Some of them even go to the ridiculous extent of advocating direct trading be tween the producer and consumer—an utter impossibility so long as we have concentrated volume production and a widespread distribution to individual consumers. Consumers' co-operation is founded on the moral principle that the necessi ties of life should be produced and dis tributed for the use of the people and not to make profits; that because it is neces sary for the people to have these things in order to have life and happiness, pro duction and distribution for profit is immoral. Production and distribution for use can be accomplished only through the total abolition of the profit system in producing and distributing necessities and this can be accomplished only by removing the profit motive. Obviously, if the consumers, as such, produced and distribirted for themselves everything they use, the profit motive would natu rally disappear and when the motive is gone the system will necessarily collapse. The consumers are everybody while the producers are always a limited class. Just as long as we "live, move and have our being'' on this earth, from the cradle to the grave, we must be consumers. Even when we come to die we usually consume a casket, some clothes and six feet of earth. Crops may fail, the mine may close down, the factory suspend operations, the farmer may sell his farm and move to town and live off the income from the proceeds, the industrial worker may have a stroke of "luck" and aban don his job, he may be permanently injured, any number of things can happen to remove him from the realm of the producers. Nothing but death can change his status as a consumer. The producer-co-operator will tell you that under his system everybody will be required to be producers or starve; and that this can be accomplished without causing overproduction by shortening the hours of labor. This is impossible because there is always a period of de pendency and non-productivity during the first part and usually during the latter part of life, to say nothing of those incapacitated through injury or other wise. The hours of labor could be just as readily reduced 'under consumer con trol as under producer. The consumers would have no greater motive for creat ing an oversupply than would the pro ducer. Because the consumers are everybody ; because they must consume every day that they live; because they must have these things in order to live and enjoy life; because it is they who must pay the cost of all production and distribu tion; because the desire to consume in order to live is the most deep rooted and the strongest of man's instincts; these are ample moral and economic reasons why the consumers and not the pro ducers should own and control all pro duction and distribution. So much for theories. But what about the practical side of co-operation as applied to our present day economic problems! At present we are living under a capitalistic system founded upon the sacredness of private property and private profit. Comparatively few people own the machinery of production and distribution and they make private profit out of their operation by pur chasing labor and raw materials as cheaply as possible and selling them at the highest possible price. Because the industrial worker is forced to organize to protect his inter ests when he goes to sell the only thing he has to sell, his labor, we have trade unions. Because the speculators, dis tributors of farm products and the manu facturers purchase farm produce and raw material as cheaply as they can and sell for all they can get, to make private profits for themselves, the producers are CO-OPERATION 191 forced to protect their interests when they go to sell the only thing they have to sell, their produce; result, we have producers' co-operative and marketing organizations. The trade union, the co operative producers' organization and the marketing organization are all abso lutely essential to the well being of the producers under a capitalistic profit system, and all are organized and main tained for the same purpose, i.e., increas ing the income of the producer. But what will it avail the producer to increase his income through organi zation, if he is immediately compelled to pay more for the things he has to con sume in order to live and continue to produce? Is he any better off when he has an income of $8 a day and it costs him $10 to live properly than he was when his income was $4 a day and it cost him $5 to purchase the necessities of life ? Then is it not obviously just as necessary that he organize just as effi ciently to protect his interests as a con sumer as he does to protect his interests as a producer? Is it not even more so in as much as he is compelled always to be a consumer whether he is a producer or not ? Our public agencies for the dissemina tion of information and propaganda realize that producers' Co-operation does not menace private profit but that it serves rather to foster and perpetuate it while at the same time quieting the economic restlessness of the exploited. That is why they give all this publicity, as well as the approval of the whole capitalistic world (excepting the specu lators who are very much in the minor ity). Even the President of the United States has put the stamp of his half hearted approval on it, and a Republican Congress recently came near subsidiz ing it. This will never be the case with con sumers' co-operation. Its publicity must come from within itself. This can be accomplished only by establishing and maintaining our own agencies of pub licity and propaganda and a strong educational movement to develop its cultural side. Foreign A GREAT CO-OPERATIVE THEATRE The history of the rise of the great Co-operative Theatre in Berlin is one of the most inspiring stories told by the co-operative movement. Back in 1890 there was organized a Free Stage Society to escape the censor ship and to bring greater realism and sincerity to the German theatre. Some of the men who contributed to the early work were Zola, Ibsen, Tolstoi, and Hauptmann. Eight performances were given annually. •The backing of this venture was largely that of middle class intellectuals, and finally Dr. Bruno Wille made an appeal for a Free People's Theatre which should be strictly co-operative and which should be within the means of the average worker. By a monthly payment of 12 cents, a member could now see one play a month; and the very greatest dramas of Europe were shown. Such was the suc cess, however, that the Chief of Police declared it to be a political society and no woman was allowed to be a member. After this difficulty was evaded the movement went ahead rapidly and in 1895 had 8,000 members. But then the censorship was again applied by the government and the insti tution was temporarily under a cloud. In 1897 a reorganization took place and the censorship was effectively evaded. By 1898 the membership had again reached 8,000, and by 1906 was 10,000. In 1911 an effort was made to pro cure land and to build a theatre ex clusively for the use of this huge society, heretofore compelled to hire its quar ters. After many difficulties, the build ing was finally completed late in 1914, soon after the outbreak of the Great War. Fourteen thousand five hundred members held shares in the building 192 CO-OPERATION CO-OPERATION 193 hi. enterprise. The opening celebration was held on December 13th, 1914, and soon after that there were 50,000 members. Program charges were abolished and members took turns acting as ushers. Back in the early days the charge was fixed at 12 cents per performance, with extra charges for coat room and pro gram. Now the charge is about 37 cents for each performance; and drawing for seats is by lot. Thus for the small sum of less than 40 cents one may see some of the finest plays to be found in Europe, and from the front seats in the orchestra (if he's lucky enough to draw such a seat). In addition to its own huge theatre, the society has acquired for constant use two others, and occasionally hire eight additional buildings. More than 200 district offices are used for organization purposes in various parts of the city. Members may go to the theatre only in rotation, though by paying a slightly larger fee they may go out of turn. Non- members are admitted only after the demands of members have been met, and only on the payment of a larger fee. Symphony concerts are now being given as well as drama; and recently the German government has asked the People's Theatre to put on Opera as well. CO-OPEEATOES OF CANADA MEET The Co-operative Union of Canada held its Congress early in August, meet ing for the first time in the western part of Canada. Among some of the best known co-operators present were John H. Walker, President of the Illinois State Federation of Labor and a Director of The Co-operative League of the U. S. A.; John Penny and' Charles Darch, directors of the British Co-operative Wholesale Society; A. C. Wieland, Canadian rep resentative of the C. W. S.; J. G. Alex ander, representative of the Scottish C. W. S.; President Farmilo of the Ed- monton Trades & Labor Congress, and others well known to the world of labor and co-operation. Letters of greeting were sent from many of the Co-operative Unions of other countries and from The Co-opera tive League. The chief speakers were John Walker, George Keen, General Secretary of the Canadian Union; John Penny of England, A. C. Wieland and one or two others. A long letter was pre sented from the President, W. C. Good, who was unable to be present.' An interesting talk was given by J. T. Hull, of the Manitoba Wheat Pool, in which it was shown that this marketing organization last year spent $23,000 for co-operative education, or an average of $1.50 per member. The speaker claimed that this was the largest appropriation for educational work to be found any where among the co-operatives of the world, if reckoned in proportion to membership. Much discussion was devoted to joint or wholesale buying, and the represen tatives of the British C. W. S. contrib uted a great deal to the subject. Previ ous to the opening of the conference a day was devoted to a Conference of Managers of co-operatives in Sas katchewan. PEIZE CONTEST FOE CO-OPEEATIVE STOEY The Alberta Co-operative League, of Canada, is offering a prize of $25 for the best article of 700 to 1000 words describ ing the history and development of a co-operative store in the Province of Alberta. These stories are appearing from week to week in the magazine, United Farmers of Alberta, and they make most interesting reading. The first is of the Killam Co-operative Asso ciation, organized in 1921 and meeting from year to year the customary number of hardships and difficulties. A COMPEEHENSIVE SOCIETY The 27,000 members of the Hudders- field Industrial Society of England have reason to be proud of the work this in stitution does for them. According to the Producer, the society can meet every need of the families of its members, from the first clothes of the new baby to the wedding and funeral undertaking. In addition to its grocery, dry goods, furnishings, boot and shoe and other de partments, the society has a dairy where milk from its own farms is pasteurized and distributed; a restaurant accommo dating 500 people; a bakery; a laundry with a dyeing and cleaning section; a drug and optical department; and lately .a tobacconist's shop. Parties of mem bers may also charter the society's own .auto busses for special tours. Finally, •the co-operator may go to a co-operative moving picture theatre at Victoria Hall, which is rented for this purpose by the •society. CO-OPEEATIVE SHAVES AND HAIECUTS Following the example of other Brit ish societies, the Halt-whistle, Green- head and District Co-operative Society •of England, has recently opened a hair- dressing department and is doing a large business with the men and women, boys and girls of the community. Hair bob bing, shingling, and cropping compose a large proportion of the work, although the old-fashioned shave and straight haircut is not neglected. But the interesting feature of this co operative service, to us in America, is the remarkably low price charged. Shaves are twopence (four cents) each, haircuts fourpence (eight cents) each. And still this society pays an annual purchase rebate of more than 10 per cent. And it guarantees to pay the rail road fare to Newcastle of any member who buys $50 worth of goods. News and Comment ILLINOIS MINEES GOING IN HIGH Two of the miners' co-operatives of Illinois show very fine returns for the first six months of 1926. They are the Hillsboro Co-operative Association of Taylor Springs and the Riverton Co operative Society. The Hillsboro Association, under the fine management of T. P^ Testa, did a business of almost $20,000 on an average inventory of only $2,300. This in itself means a stock turnover of almost ten times during the half year. And it is stock turnover which makes profits. But these co-operators also made a net savings of profit of $1,464, which en abled them to pay a rebate of 8 per cent on members' purchases and still have something left for reserve after paying interest on members' stock. If the same gain is made in the second half of the .year, the return to members for the en tire 12 months will equal the entire cap ital stock invested by these members— 100 per cent return on their investment. As a matter of fact, the Hillsboro Asso ciation has been returning such a pat ronage rebate for several years past. The Riverton Society has had to sub sist entirely on the trade of unemployed miners for many months. The whole town depends upon the coal mines, and these mines have not been working. Yet in spite of this fact, the semi-annual report shows a net saving of nearly $3,000 on a business of $44,000, and a return to members of 7 per cent on their purchases. Many a co-op manager in a town where all the members are working full time at good wages would be proud of such a co-operative business record based on such loyalty of the membership. Rumor now has it that Riverton mines are soon to reopen. EOANOKE, ILLINOIS The Roanoke Co-operative Association, composed of miners in the town of that name in Illinois, is one of the little store societies that has been plugging along a good many years, and making good. Report for the first six months of 1926 shows a gain of $1,413.58 from sales. Assets are just over $8,000, but nearly $7,000 of this is inventory and members' accounts receivable. On the liability side, the largest item is $4,124 of Reserve Fund. As this com poses more than half of all the liabilities, nothing more need be said about the sound financial condition of the busi ness. Some of the principal workers in the society are Italians. 194 CO-OPERATION CO-OPERATION 195 WHAT CHEER, IOWA It is a peculiar name for a town, isn't it ? But from the co-operators' point of view the answer to the name is "Much Cheer." Farmers in and about What Cheer, Iowa, in February, 1925, opened a store to sell their produce and buy for them farm supplies, groceries, etc. The first year's business was $108,000. Like many of the other little stores in Iowa, this one is organized on the non stock, non-profit plan, which means that no stock is sold and no profits therefore can be distributed to stockholders. Each member pays a $1 membership fee and the balance of the funds needed was borrowed from the bank or from mem bers. Every member promises, on join ing, to turn back into the business all purchase rebates paid to him during the first five years of business, taking notes from the Association in return. Thus the rebates are converted into loan cap ital. There are about 500 members. Sales for the first eight months of 1926 are about $83,000. Yes, there is Much Cheer for the co-operative move ment in the news from What Cheer, Iowa. BEARCREEK, MONTANA The People's Co-operative Society of Bearcreek, Montana, was organized by the local of the United Mine Workers of America back in 1920, because the min ers felt they were being fleeced by the local merchants and the company store. During the first 2% years the store went into debt to the tune of nearly $9,000, as so often happens when a co operative is started with little other capital than enthusiasm and dollars. Much of the original $20,000 of capital was eaten up by poor management, and the members and directors were fairly discouraged. In 1923, R. McKenzie Lord, an experi enced co-operator from Scotland who had settled in Montana, was called in to take charge. From that day forward the store has been making progress, and now has unpaid bills of less than $3,000. HOW IABOR AND CAPITAI CO-OPERATE The visitor to a certain section of the Bronx, New York City, may enlighten himself as to how some labor co-opera tion is sold to the workers. A very large new apartment house is just approaching completion. Once it is ready for occu pancy, the apartments are to be sold to all comers. Emblazoned across the side of the building is a mammoth sign, con taining the following words: THOMAS GARDEN CO-OPERATIVE APARTMENTS LABOR AND CAPITAL UNITED IN ERECTING CO-OPERATIVE APARTMENTS AT COST For Families of Working People LABOR—ALL TRADES CAPITAL—JOHN D. ROCKEFEL LER ARCHITECT—Andrew J. Thomas The $500,000 of common stock is pur chased by the worker-tenants and carries no voting privileges. The $50,000 of preferred stock is all held by John D. Rockefeller. The selection of the Board of Directors and complete control of the- corporation is retained for at least 15- years by the holder of the preferred stock. DOES IT PAY FOR CO-OPERA TIVES TO CO-OPERATE? There has teen no co-operative whole sale society in the Eastern part of the United States for several years, so each store or bakery manager has to buy from the private wholesalers and get the test prices and test treatment he can. But recently a group of the strongest co-operatives in New York and New England have formed an Eastern States Co-operative League: and one of the first activities is to help the managers pool their tuying. A Joint Buying Com mittee was appointed, consisting of the managers of two large takeries. The Utica Co-operative Bakery ordered a car load of flour from this Committee and saved $175 over the prices quoted in Utica. A couple of months later the same takery saved $160 ty tuying an other carload from the New York office of the same Buying Committee. Other takeries will take up the good work. Then will come joint tuying of co'ffee and other foodstuffs. And gradu ally the foundation for a genuine Co operative Wholesale will te tuilt. This is the slow tut sure way that the co operative movement advances. Book Reviews YEAR BOOK OF THE NORTHERN STATES LEAGUE The Second Year Book of the Northern 'States League is a great advance over the one published a year ago. It is more complete in the information it carries; it is much better in appearance and make-up; it is larger. The first 34 pages are devoted to a history and description of the Northern States Co-operative League and its work, with statistics of its membership. The next twenty pages are given over to special articles by members of the staff of The Co-operative League of the U. S. A. and articles about the national organization and the Eastern States Co-operative League. The finest statistical work is contained in the 24 pages taken by the Co-opera tive Central Exchange (Wholesale). We have yet seen nothing in this coun try better than this study of financial statistics, figures regarding membership ; comparison of the various member stores, etc. The next 30 pages (bringing us to page 100) are given to more contributed articles by leading co-operators and to the stories of certain of the larger and more prominent local store- societies in the Northern territory. Franklin Creamery Association takes 24 pages for a careful description of its business, its educational work, its social organization of members and employees, its health clinic, and other aspects of its varied work. The New Era Life (Insurance) Association takes 8 pages and the Work ers' Mutual Savings Bank 3. Fourteen pages go to the story of co-operative stores in Minnesota. Many societies have contributed advertisements to the latter part of the publication. Some of the writers contributing special articles are: J. P. Warbasse, President, The Co-opera tive League. Albert Sonnichsen, Vice-President, The Co-operative League. Mabel W. Cheel, Member of Staff, The Co-operative League. Cedric Long, Executive Secretary, The Co-operative League. Agnes D. Warbasse, Educational Secre tary, The Co-operative League. George Halonen, Education Director, Co-op Central Exchange. Eskel Ronn, Manager, Co-op Central Exchange. H. I. Nordby, President, Franklin Co-op Creamery Association, and President, Northern States League. E. E. Branch, President, New Era Life Association. J. H. Hay, of Minnesota State Depart ment of Agriculture. V. S. Alanne, Secretary, Northern States League. Mr. Alanne, the editor, and the direc tors of the Northern States League are certainly to be congratulated on this excellent little year book. C. L. "THE CO-OPERATIVE REVIEW" The Co-operative Union of Great Britain and Ireland has issued the first number of a new magazine, The Co operative Bevieiv, which is to be the official organ of the Union. It is in tended also to serve as a medium through which original information can be con veyed to officials and students of co operation, and new ideas on the subject can be recorded. This magazine will give more attention to the intellectual and cultural side of co-operation than is given by other peri odicals. The French have the Etudes Co-operative. The British movement is in need of such a publication. This first number looks promising. An article on "The Educational Work of the Co-operative Union," by Profes sor Hall gives an idea of the extended and diversified work of that organiza tion. Mr. Alexander has an article on "The Co-operative Movement and the New Protection,'' which shows how Brit ish bungling politicians are trying, in their desperation to place protective tariffs on British industries. He shows how fatal protection would be to the 196 CO-OPERATION CO-OPERATION 197 i i country. An article on "Co-operative Societies and the Income Tax," by Mr. Palmer shows the struggle the societies have had to beat off this attack instigated by profit business. Mr. Redfern's article on "Discoveries for the Nation" sug gests what the co-operative movement has revealed to the British people. Un fortunately most of them have failed to be impressed by the revelation. Mr. Eedfern is hopeful that the lessons will make their impression even though, as he says,'' Sometimes it seems more likely that co-operative ideas, instead of being discovered and adopted by the nation, wall be driven out of the Co-operative Movement's own conferences and board rooms." "The Educational Needs of Committee Members," by Mr. Dowie contains sound practical advice. When Mr. 'Alfred Barnes, M.P., dis cusses "The Consumers' Place in Poli tics" he shows what seems to him the importance of political action for co- operators. All co-operators should be long to the Labour Party, he asserts. While there are many co-operators who will not agree that the place of co-opera tors is in any political party, there are plenty who will rejoice that Mr. Barnes has not laid emphasis upon the Co-oper ative Party which would commit the movement to politics. Every under standing co-operator will agree with his statement: "We labor to live, and Co operation has shown that the aspirations of Labor can best be realized by organiz ing production from the consumers' end.'' Good sound co-operation like this is encouraging, for we are always getting the idea that the leaders of the British movement are political socialists at heart rather than co-operators. Hans Muller, in his article on "The Co-operative Idea," comes to the con clusion that it is of religious origin, and the religious community in which the co-operative idea was born was that of Quakerism. The magazine closes with reports upon the important resolutions passed by the last British Co-operative Congress. It is a welcome addition to the current literature of Co-operation. J. P. W. PRINCIPLES AND PRACTICES OF CO-OPERATIVE MARKETING BY MEABS AND TOBBENEB Ginn and Company Of the several books on this subject which have appeared during the past few years, this is by far the most com prehensive and intelligent we have seen. After two introductory chapters in which the importance and the funda mentals of the movement are stressed,, the authors plunge into Problems of Organization, to which they devote five chapters; Business Practices, to which they devote nine chapters; and Regional Characteristics, to which they give four chapters. Their two concluding chap ters are on Criteria of Business Effi ciency, and National Problems of De velopment. It might be added that three chapters in the third section men tioned above are devoted to a very good survey of co-operative marketing in the other countries of the world. There are many whole paragraphs which we should like to quote, if space allowed. For instance, from among all the benefits claimed for co-operative- marketing, they select only two which have much claim to real merit: elimi nation of waste, and the saving which is effected through co-operative action. These men also go to considerable pains to show that co-operative market ing by the farmers has not actually re sulted in the raising of prices to the consumers. This lesson will be a very hard one for the consumers to learn, but certainly the gentlemen who write this book marshall an imposing array of facts to support their claim. They do admit that many of the associations make a great effort to manipulate either supply or demand, and that they are often most successful. But a wider de mand for a product may be stimulated without increase in price, in fact it often demands a decrease in price. And supply may be in some measure diverted to other channels (fruit to canneries, etc.) in order to hold the market for fresh goods to a good level. But this does not restrict supply, it merely changes the form in which the goods are distributed. Attempts ac tually to curtail crops have rarely been successful. An interesting comparison is given us of the extremely conservative peasant of the small holding in Europe and the much more progressive type of more properous American farmer. Also some interesting examples of loyalty pledges enforced upon members by some associ ations. There are minor defects and mistakes here and there. One is mentioned edi torially in this magazine. Another is the statement early in the book that "(consumers') co-operative buying is simpler than co-operative selling." That is a matter which could be hotly disputed, and in the end we should prob ably find that we had arrived nowhere except at the fact that some consumers' societies are easier to organize than some marketing societies, and some others are not. C. L. District Leagues DIRECTORS' MEETING OP EASTERN STATES LEAGUE The directors of the Eastern States League met on September 19th in New York City and spent an entire day in discussion of the affairs of the societies in New England and New York. The joint buying program is making steady progress. During August ship ments of 2,500 barrels of flour were made through the activities of the buying com mittee. Seven societies are now using the Co-operator's Best Coffee from the roastery of the league, and two others are making plans to begin these pur chases soon. An investigation will soon be made of the possibilities of handling sugar and one or two other commodities. The plans worked out by an independ ent committee for the opening of co-ope rative training courses this winter were presented and discussed at great length. A committee composed of directors of the league was elected to meet with this independent committee. Approximately ten delegates are being sent to the national Congress in Minneapolis. Mr. Endres, president, was elected to go directly from the board of directors of the Eastern States League, and nine others are being sent by their own organizations. Much dis cussion took place over the matter of financing of the national league office. A resolution finally carried presented to the national office the opinion that Mr. Sounichsen's letter on the subject of independent financing of the league and all answers thereto should be circulated among all the societies affiliated with The Co-operative League of the U. S. A. and also sent to all delegates who are going to the Congress from these societies. • The secretary presented certain statis tics compiled from the questionnaires returned by co-operatives in the Eastern States, and a committee was appointed to go over this material carefully with a view to preparing from it some propa ganda material that can be used by the societies. A communication from some Finnish farmers near Spencer, N. Y., received the attention of the board and the secre tary was instructed to write to them and ask that financing of an organizer be arranged from that end if organizing of a store society is to be undertaken by this league. Other matters given attention were auditing, the monthly paper, Eastern Co-operator, membership campaign, the office work. Next meeting will take place in New York early in December. Besides the seven directors, there were present several active co-operators by special invitation. They were: Otto Arlund, Manager of Brooklyn Workers' Co-operative Home; Mr. Kruth, Director of Finnish Co-op Trading Association; Alex Trutneff and Mr. Lucofsky, Direc tors of Russian Workers' Co-operative 198 CO-OPERATION Stores Association; Mary E. Arnold, Manager and Leroy Bowman and Esther Harmon, Directors of Consumers' Co-operative Services; W. Regli, Mrs. Perkins and Mrs. Cheel of the staff of the national league. CENTRAL STATES CO-OPERATIVE LEAGUE During October, several of the soci eties in Illinois expect to receive a visit from Mabel W. Cheel, of the National office in New York. It is now more than two years since Mrs. Cheel has been among the miners' stores. Letters are being mailed to all of the affiliated so cieties of the Central States League. As Mrs. Cheel cannot spend more than a week in the state, it will be impossible for her to get to more than six or seven of these towns. The work of the Mutual Aid Guild still continues to occupy a great deal of fhe attention of the office of the C. S. League. The membership is slowly mounting every month. Multigraphing work for affiliated societies is also an important part of the work of the staff. The financial report for the three months ending July 31, follows: Eeport of Receipts and Disbursements of the CENTRAL STATES CO-OPERATIVE LEAGUE For the Quarter ending July 31, 1926. RECEIPTS : Dues from Affiliated Societies Dues from Individuals...... Joint Buying Commissions.. Multigraph Service for Affili ated Societies ......... Sales of Literature........ Contributions ............ For Services Rendered Cen tral States C. W. S..... For Services _ Rendered and to be Rendered Con sumers Mutual Aid Guild ............... Miscellaneous Receipts ..... $ 78.56 23.00 51.11 51.00 4.10 1.00 100.00 515.27 16.43 DISBURSEMENTS : Salaries ................. $400.00 Postage .................. 46.68 Freight, Drayage & Express. 27.43 Office Supplies ............ 2.95 Traveling Expenses ....... 6.55 Insurance & Bond Premiums 22.80 Total Disbursements $506.41 Balance ............ $334.06 Total Receipts .......... $840.47 NORTHERN STATES CO-OPERATIVE LEAGUE Recent meetings of the Executive Board of the Northern States Co-opera tive League have taken up some interest ing matters. Ten thousand copies of the N. S. Year Book are now off the press and are being distributed (see details in advertisement on another page). The Secretary reported the total in dividual membership of 339 paid up for 1926. Since June first, there have been procured seventeen new constituent memberships and one new fraternal membership. If the individual member societies of the Central Exchange are taken as indirect membership of the Northern States League, the total con stituent direct and indirect membership is about 90 societies representing 53,766 individuals. Mr. Carl Lunn has done some very effective field work during the summer and has lined up many new members for the League. The last three which he brought in during August were the Minnesota societies in the towns of Princeton, Aitldii, and Henning. It is the aim of the Secretary to get 270 more individual memberships in the League and a few more society memberships be fore the close of the calendar year. A Joint Committee 011 preparations for the Fifth Co-operative Congress has been organized, the membership of which is made up of delegates from the North ern States League, Franklin Creamery, and other local co-operatives. The N. S. League is represented on the Committee by Messrs. Burandt, Emme and Alanne. CO-OPERATION 199 The Correspondence File ANOTHER VIEW ON STOCK TURN OVER Editor, CO-OPERATION: In your recent bulletin you take up the matter of capital and stock turnover. On several occasions these subjects have been discussed and a good many co-ops are sold on the idea and follow it to the very limit. I agree that stock turnover is an important part of management. But I do disagree with the idea that quick turnover is to be considered the only method by which a society benefits. Now take this illustration for an example: Here are two stores selling soap, say one case per week costing $6 per case at wholesale in single case lots. Store 1 has no capital and buys only one case at a time; pays the wholesaler when it is sold and buys another one. No capital is needed there, no money is made in buying, and nothing is lost by interest on investment. Store 2 buys twenty-five cases of soap, and borrows $l:5.0i at -6 per cent, paying interest of $2.50 for the use of the money. It pays for the soap $150 cash less 10 per cent, or $15. This store made $15 less interest on invest ment or $13.-50 net. Store 1 made nothing in its buying, while Store 2 made 7% per cent. Now this is an extreme case used for argu- 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 individually. Offices & Warehouses Winter Street and Ogden Avenue Baltery Plant North Fifth Street & Grand Ave. SUPERIOR, WISCONSIN ment only, but at the same time it is entirely workable. I would not encourage anyone to go and borrow money in order to buy a lot of goods and endanger the very existence of the business. But I am considering a case where money is plentiful, and management is sound, fully conversant all the time with what is going on and how the society stands finan cially. I know some managers who have fol lowed the quick -stock-turnover idea to the limit and sacrificed thousands of dollars which could have been piled up in the treasury without danger. This is not meant as criticism of the point you make. I am inclined to be more on the side of your argument because I am for safety first; but at the same time I cannot very well close my eyes to the possibility of making good money without taking a speculative chance. Think it over and see if you agree with me. W. NIEMELA, Manager United Co-operative Society. Maynard, Mass. 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 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 CO-OPERATION, 167 West 12th Street, New York. Please send CO-OPERATION for one year to Name. . . . ............................... Address................................. $1.00 a year. 1 II! 200 CO-OPERATION PUBLICATIONS —OF— THE CO-OPERATIVE LEAGUE HISTORICAL Per Copy Per 100 3. Story of Co-operation .............$ .10 $6.00 7. British Co-operative Movement..... .10 6.00 38. Consumers' Co-operative Movement in U. S., 1926................. .10 6.00 39. Consumers' Co-operative Societies in N. Y. State (Published by Con sumers' League ................ .10 59. Co-operative Movement in Europe.. .05 4.00 64. Progress of Co-operation in United States. ..................... .05 4.00 TECHNICAL 4. How to Start and Run a Rochdale Co-operative Society ............ .10 4.0Q 5. System of Store Records and Accounts................... .50 6. A Model Constitution and By-Laws for a Co-operative Society....... .05 2.5Q 8. Co-operative Education. Duties of Educational Committee Denned... .10 9. How to Start a Co-operative Whole sale ........................ .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-opera tive League ................... .10 29. Credit Union Primer (By Ham and Robinson). .................. .50 43. Co-operative Housing ............. .10 50. A B C of Co-operative Housing.... .10 51. Model Lease for Co-operative Apart ment House ................... .10 MISCELLANEOUS 16. Model Co-op State Law............ .10 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 33. Credit Union and Co-operative Bank .05 13. The Place of Co-operation Among Other Movements .............. .25 34. Co-operative Movement (Yiddish).. .02 1.25 30. "When the Whistle Blew" (Story, by Bruce Calvert) .............. .06 41. Social Aspects of Farmers' Co-opera tive Marketing (By Benson Y. Landis). .................... .25 42. Co-op Homes for Europe's Homeless .10 53. Real First Aid for the Farmers.... .05 55. A Better World to Live In........ .05 57. How a Consumers' Co-operative Dif fers from Ordinary Business..... .02 .60 60. The " Moral Equivalent " of Jazz... .02 62. Buttons (League Emblem in 3 colors) 54 inch diameter........ 3.00 63. Sign or Transparency of League Em blem. Green and gold, 8 in. diam.. .25 15.00 ONE-PAGE LEAFLETS (One Cent each; 50 Cents per 100; $2.50 per 500; $4.00 per 1,000.) (1) Principles and Aims of The Co-operative League; (18) 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 Move ment?; (45) Schools and Stores; (47) A Man's Right to a Job; (48) Tips to Co-operators; (49) The Way Out; (61) Co-operation Brings Disarmament. MONTHLY PUBLICATIONS CO-OPERATION—(In bundle lots, $7.50 per hun dred) . Subscription, per year.............. $1.00 HOME CO-OPERATOR, 4 pages...... .$1.00 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 Move ment. They may be ordered through The League: Bergengren, Roy F.: Co-operative Banking, A Credit Union Book ..................... $3.00 Blanc, Elsie T.: Co-operative Movement in Russia . . . . . . . ....................... 2.50 Brightwill, L. R.: Animal "Co-op" Book—For Children............................ .15 Faber, Harald: Co-operation in Danish Agricul ture, 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 American edition and notes, 1922. Cloth, $2.00; paper bound ..................... .90 Hall, Prof. Fred: Handbook for Members of Co operative Committees ................... 2.00 Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Paper bound........ .60 Holyoake: Rochdale Pioneers ................ 1.00 Howe. Fred C.: Denmark, a Co-operative Com monwealth, 1921 ....................... 2.00 Jessness, O. B.: Co-operative Marketing of Farm Products ......................... 2.50 Madams, J. P.: The Story Retold............ .50 Nicholson, Isa: Our Story................... .25 Owen, Robert: Autobiography .............. .50 Potter, B.: Co-operative Movement in Great Britain.............................. 1.00 Redfern, Percy: The Story of the C. W. S..... 2.00 Redfern, Percy: The Consumers' Place in So ciety, 1920 ............................. 1.00 Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918 ........................ 1.00 Smith-Gordon and O'Brien: Co-operation in Denmark. . . . . . ..................... 1.00 Smith-Gordon and O'Brien: Co-operation in Many Lands, 1920 ..................... 1.50 Stolinsky, A.: The Co-operative Movement. (In Yiddish). ............................ 1.00 Warbasse, James P.: Co-operative Democracy.. 2.50 Webb, B. and S.: The Consumers' Co-operative Movement, 1921. Board, $2.00; cloth..... 5.00 Webb, Catherine: Industrial Co-operation, 1917. 1.50 Woolf, Leonard: Co-operation and the Future of Industry............................ 1.00 Woolf, L.: Socialism and Co-operation........ 1.50 Co-operation in Great Britain and Ireland, paper .25 CO-OPERATION, Bound Volumes, 1915 to 1925 inclusive, each ......................... 1.25 Transactions of Second American Co-operative Congress, 1920 ......................... 1.00 Transactions of Third American Co-operative Congress,. 1922 ......................... 1.00 Transactions of Fourth American Co-operative Congress, 1924 ......................... 1-00 Northern States Year Book, 1926. Paper..... .25 The People's Year Book, 1926. Cloth, $1.00; paper bound ........................... .60 (Ten cents postage should be added for books which cost more than $2.00, and five cents for the smaller books.') (CKOATION A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in voluntary association, produce and distribute for their own use the things they need. Published Monthly by THE CO-OPERATIVE LEAGUE 167 West 12th Street, New York City J. P. WARBASSE, Editor Entered as Second Class matter, December 19, 1917, at the Post Office at New York, N. Y., under the Act of March 3, 1879. Price $1.00 a year. VOL. XII, No. 11 NOVEMBER, 1926 10 CENTS FIFTH CO-OPERATIVE CONGRESS, NOVEMBER 4th, 5th, 6th. Headquarters, Franklin Auditorium, 2108 Washington Ave., North, Minneapolis. n 202 \ CO-OPERATION Dr. James P. Warliasse has been Presi dent of The Co-operative League of the V. fi. A. (formerly the Co-operative League of America) since March, 1910 Cedric Long, Executive Secretary of The League since January, 1925, first joined the staff of The League In October, 1921. Fifth Co-operative Congress Minneapolis, November 4, 5 and 6, 1926 Program THUESDAY, NOVEMBEK 4TH 9 a.m. Opening Session Reading of the Call to the Congress. Address of Welcome by Harold I. Nordby, President, Northern States Co-opera tive League, and Franklin Co-operative Creamery Association. Election of Committees on Rules, Credentials, Nominations, Resolutions. Greetings from Foreign Unions. Greetings from Labor and Fraternal Organizations. President's Address. • Report of Committee on Credentials. Two Minute Reports of Delegates. Program continued on page 204 CO-OPERATION 203 Harold I. Nordbij was one of the 13 members loho at tended the first meet ing of shareholders of the Franklin Creamery Associa tion, hack in Oct. 1919, when only $911 worth of stock liad been sold and there were no buildings, no delivery wagons, no employees. He has been President ever since then. This year he is also 1'resi- dent of the Northern States Co-operative League, and he has been a Director of The Co-operative League of the V. S. A. since January, 1925. •» -* 1 ' -*- _ — * .i j£ ,* *SE- -- =»=?C . ; As President of the first two organi sations, both of which are hosts to the Fifth Co-opera tive Congress, Mr. Nordby will lie much in evidence during the various sessions, both on the floor during discussions and behind the scenes where he serves as a member of the Committee on Arrangements. His duties as adminis trative head of a four million dollar business and nearly 500 employees qual ify him to take on a few more activi ties during Congress Week ! A. W. Warinner (below), at present Executive Secre tary of the Central States Co-operative League, lias seen all sides of the movement. He has managed several stores (in Missouri and in New Mexico) ; iras on the staff of The Co-operative League for some time as a district adviser in the central part of the country; went in 1922 with the Central States Co-opera tive Wholesale Society, and iche,n the Educational Deport ment of that institiition icas organised become its Secre- tarji. It is due chiefly to his energy that the Central States Co-operative League u~as or- nanized last summer. He J:as been a Director of The Co operative League of the V. S. A. since 1923. T. S. Alanne (above) has been associated for man;/ years tcith the co-operative movement of the North Cen tral States. It was while he was Educational Director of the Co-operative Central Ex- chanye in 1922 that he suc ceeded in getting a conference of co-operatives which organ ized the Northern States Co-operative League, of which he is Executive Secretary. He was also Educational Director of the Franklin Creamery Association during 1925 and half of 1926. The success of the Co-operative Training Schools held In Minneapolis for three years is due chiefly to his effective work. He is a Direc tor of The Co-operative League. tef Albert S. Goss (above), President of the Washington iState Orange, was formerly a successful farmer, then a business man In the com mercial world, then Manager of the Associated Grange Warehouse. Since 1924 he has been a member of the National Executive Committee of the National Grange, and also a member of the Board of Directors of The Co-opera tive League. He is a man chock full of Iznowledye about the economic problems of the farmers, and is an eminently practical co-operative adminis trator as well. He speaks at Minneapolis on " The Relation of The Co-operative League to the Co-operative Marketing Movement." 204 CO-OPERATION CO-OPERATION 205 I'. This trio comes from the Co-operative Central Exchange, Wisconsin, Wholesale for 65 co-opera tives in Michigan, Wisconsin and Minnesota. The first is Eskel Ronn, Manager of the Exchange since 1922. Under the guidance of Mr. Ronn, the business has leaped from annual sales of a couple of hundred thousand to approximately one million in 1926. Ronn has been a Director of th-e Northern States League since it -icas organized, and a Director of The Co-operative League since January, 1925. He speaks at the Congress on Co-operatire Banking. Matti Tenhunen, in the center, has been President of the Co-operative Central Exchange since its organization in 1917 and one of the outstanding leaders in the Finnish movement in that part of the country. He has also been for more than 12 years the Manager of the Tumies Publishing . Company, a labor paper co-operatively owned. As tilts paper carries a weekly co-operative section which goes to Finnish co-operators throughout the central (and other) parts of the country, it has become a powerful factor in strengthening the movement. Mr. Tenhunen has been a Director of The Co-operative League for more than a year. George Halonen is one of the younger men in the movement. For several years he worked on various labor papers, and in 1924, when Mr. Alanne gave tip his position with the Exchange, Mr, Halonen was made Educational Director, the position he now occupies. He conducts the educational work of the Exchange and also edits the new monthly, The Pyramid Builder. He was at one time the representative of the Karelian Government in the United States. He speaks tit the Congress on Relation of Consumers' Co-operative Movement to the General Labor Movement. 2 p.m. First Administrative Session Report of the Executive Staff and Executive Committee by the Secretary. Cedric Long. Report of the Treasurer. Report from Central Committee of the International Co-operative Alliance. James P. Warbasse. Reports of District Leagues. V. S. Alanne, A. W. Warinner, L. E. Woodcock, John F. McNamee. 4 p.m. Auto Trip to Points of Interest. 7 p.m. Reception. Banquet. Music by Franklin Chorus. •-v m Senator Smith W. Brookhart is so well Isnomn throughout tlie countru as the militant Senator from Iowa, that he needs no special introduction to the ordinary reader. Co-operators generally, however, may not know that he is one of the foremost authorities in this countru on Co-opera tive Banking, and few people can tell him much that is neiv about the consumers' movement gen erally. He speaks to the Congress on Co-op erative Banking. Roy F. Bcrgengren has been Executive Secre tary of the Credit Union Extension Bureau, with, headquarters in Boston. It is primarily because of his efforts and ceaseless joumeyings about the country that we now boast of having credit union laws in 24 of the states of the Union. He also speaks at the Banking Session of the Conriress, and it takes no prophet to guess what his parti cular emphasis tcill be. FRIDAY, NOVEMBER 5TH 9 a.m. Policies and Practices of Societies What Kind of Educational Work Can Be Carried on Inside the Co-operative Store? Discussion opened by A. W. Warmner. Celebration of International Co-operative Week. Frederick Burandt. Uniformity in Co-operative Accounting. Is it Possible? H. V. Nurmi, W. E. Eegli. Relation of Consumers' Co-operative Movement to the General Labor Move ment. George Halonen, A. A. Siegler. 2 p.m. Banking and Insurance The Relation of Co-operative Insurance to Our Distributive Movement. Should The League Undertake the Organization of a Co-operative Insurance Society, or Should It Throw Its Support to Existing Societies? Milo Beno, E. E. Branch Should The League Undertake the Organization of a Co-operative Banking Society? Should It Throw Its Support to the Credit Union Movement? Or Should It Promote Legislation to Authorize Existing Consumers' Soci eties to Accept Savings Deposits from Members? Senator Smith W. Brookhart, Eskel Bonn, Boy F. Bergengren. Supper. 6 p.m. Committee Meetings. Round Table Discussions 206 CO-OPERATION CO-OPERATION 207 1 8 p.m. The Co-operative Marketing Movement What Should Be the Relation of The Co-operative League of the U. S. A. to the Co-operative Marketing Movement ? Albert 8. Goss, Washington; A. E. Cotterill, Iowa. SATURDAY, NOVEMBER 6TH 9 a.m. Second Administrative Session Membership and Financial Support of The League. A Discussion of Policies for 1927 and 1928. Toward a National Co-operative Training School and Correspondence School. Toward a National Co-operative Year Book. What Progress Are We Making? Report of the Nominating Committee. Third Administrative Session 2 p.m. Shall Local Societies Hold Direct Membership in the National League, in Districts Where a District League Exists? Election of Directors and Auditors for 1927 and 1928. Election of Delegates to International Congress, 1927. Report of Committee on Resolutions and Action thereon. Mr. Olaf Halten, leader of the Franklin Male Chorus and the Franklin Band, as well as an active member of the Educational Committee at franklin for nearly fhret years, will lie seen or heard from at the Congress as much or more than any other person present. He is a member of the Minneapolis Symphony Orchestra, and has lieen active as Director of several Scandinavian Glee Clubs in Winnepeg, Duluth and Minneapolis be fore taking up this work witli Franklin. He helped organize the Chorus in 1922, and the Band in 1023. Both will entertain the delegate* Frederick F. Burandt. Chairman of the Edvca- • tional Committee of the Franklin Creamery Asso- "fiation, and also chairman of the Committee on Uonffrens Arrangements, has done a tremendous amomnt ol wort- in t injunction with members of his committees, to complete the local plans for Congress. Mr. Bnrandt was formerly a teacher in Minneapolis, btit is now working with the Franklin Association. He is also a former Presi dent of the Northern /States Co-operative League. He speaks at the Congress on "International Co operative Week." 6 p.m. Meeting of Board of Directors of The League. 8 p.m. Mass Meeting. Co-operative Moving Pictures. Music by Franklin Band and Chorus. Arranged by Franklin Co-operative Association SUNDAY, NOVEMBER 7TH 9 a.m. Conclusion of Meeting of Board of Directors of The League. Conference on Co-operative Wholesaling. Conference for Managers under auspices Northern States League will be held on Wednesday, November 3. Vital Issues OUR FIFTH NATIONAL CONGRESS November fourth opens the Fifth Congress of The Co-operative League of the U. S. A. Many of us can think back to the Congress of 1924 in New York or the Congress of 1922 in Chicago. A few go back to the Convention of 1920 in Cincinnati; and a very few to the first convention held in 1918 at Spring field, Illinois. (Previous conferences for consumers' co-operatives in the East have been called by the "Consumers' Co-operative Union."—See page 209.) As we look over the list of delegates to that first convention, we find scores of names now unfamiliar to the movement, names of men and women who rose to temporary prominence in their local societies, were sent to the national convention, and then disap peared when their societies died. But there are also in that list names of men who continue their work in the move ment : Felix Bertolino, Manager at Benld; K. E. Grandahl, Manager at Fitchburg; George Keen, Secretary of the Canadian Co-operative Union; Carl Lunn, now doing field work for the Northern States League; William Mar- tilla, Director at Worcester and Manag ing Editor of Eteenpain (Finnish weekly); W. Niemela, Manager at May- nard; L. J. Salch, Bloomington; Roy Shanks, Manager of the Cleveland Co-op erative Coal Co.; John H. Walker, Presi dent of Illinois State Federation of Labor; A. Wirkkula, Manager of Finnish Co-operative Trading Association. Only four of these men are to-day associated with the same co-operative they were with at that time. The shining peaks of the American movement in those days were the Tri- State Wholesale at Pittsburg, the Pacific Co-operative League of Cali fornia, the powerful movement in Seattle, the Central States Wholesale in Illinois, the Co-operative Central Ex change at Superior, the National Federa tion of Finnish Societies. During the intervening years all except one of these has been obliterated. And new peaks have thrust themselves up—District Leagues in North Central, Central, and Eastern States, the powerful movement among the farmers with wholesales in Washington and several of the Central States, training schools, the development of national unity, membership in the International Co-operative Alliance. The Co-operative Central Exchange has proved to be one of the very few large federations of societies with foundations sufficiently well laid to withstand the storms of these years. It has gained strength and wisdom during its struggles for survival. There is cause for much humility at I! 208 CO-OPERATION CO-OPERATION 209 I I: our Fifth Congress, if we turn back to the pages which record the proceedings of the First Congress and note the ambi tious promises made there and never fulfilled. There is good reason why we should be extremely cautious with our plans for expansion until we have solidly established the co-operative movement we already have. There is hope in the newer spirit of sober earnestness and freedom from blatant oratory which characterize the leadership of these newer federations that are soon to nose their way into the year 1927. CO-OPERATION welcomes to this national Congress of The Co-operative League the delegates who come a hundred strong and from all sections of the country, to devote their attentions and their ener gies to the making of closer co-operative unity in the United States. May their labor be well rewarded. C. L. STOCKHOLDERS' CONTROL Stockholders are losing control of the corporations. Prof. W. Z. Ripley, of Harvard, told the American Academy of Political Science that Wall Street must mend its ways if it wants to continue in the public confidence. One reason for this is that the stock holders of most corporations are so scattered that a quorum of them never are present at a meeting. They send their proxies to the directors and the directors keep the control as well as the management in their own hands. There is another means by which the big corporations are getting the control out of the hands of the stockholders: They sell to the public stocks which have no voting rights, and they retain the stocks which have voting rights. The promotion of Dodge Bros., the automo bile manufacturers, is an example. The business was bought by a banking house for $146,000,000. The bankers reorgan ized the concern. To raise this money they sold to the public bonds, preferred stock, and 1,500,000 shares of "non- voting stock.'' They retained for them selves 500,000 shares of "voting stock." The latter is not sold to the public. Many corporations now practice this method. This puts squarely the control where it will be used. Stockholders are not, and never have been, interested in control and administration of their corporations. They want dividends, not responsibility. Let the responsibility go to those who want it and who are competent to ad minister it, is the feeling of the average stockholder. Now suppose a service corporation in which the stockholders are not looking for dividends in their stock, and in which each stockholder has one vote only, is formed. Here is the possibility of equal control by stockholders—provided that the stockholders do not live too far apart and can readily meet to discuss their interests. But even here, in the co-opera tive service corporation, the same lack of interest may exist and the stock holders may not use their right of fran chise. They are not deprived of the right but they may voluntarily forego it. This is all too commonly the case. The great problem to-day in many co operative societies is to get the control out of the hands of the managers and a few officials and into the hands of the members. Many societies are run by a small autocracy. Often the manager is the controlling power, largely because of the indifference of the members. Danger threatens any enterprise that is not controlled by the owners. In the profit corporation, the controllers are apt to become the owners, if they wish. In the co-operative corporation, indiffer ence of the stockholders allows the con trol to drift into the hands of a small group of officials. Often the manager becomes the whole control, and there have been many cases in America and England where he has used his control to make himself the owner. LOTS OF GROCERS In the United States there is one wholesale grocer for every 56 retail grocers, and one retail grocer for every 73 families. • They are all very busy. The whole salers are busy chasing around to get the orders from the 56 retailers. The retailers are busy wondering where the money is coming from to pay the wholesaler, and how it is to be gotten out of the 73 families. The sheriff is busy selling them out. Over 70 per cent of both of them are headed for bank ruptcy. Both sell what they buy for profit's sake. The 73 families seem to be in the best position; they consume what they buy, which is the natural and sensible thing to do. We are for the family idea of business. If nobody bought anything except for his own use, and if no organ ization produced or made purchases of commodities except for the use of its members, there might not be so much business but it would surely be a more sensible business. Benjamin Franklin said, "Don't buy a thing unless you need it." If he were living to-day, he might say, "Don't buy a thing unless you are going to use it." THE BREAD CONSUMER'S DOLLAR The International Labor News Serv ice has figured out who gets the bread consumer's dollar. It seems that Mr. Ward, the baker, knows a lot about this subject too. He should; he gets most of the money. This is the way the matter stands in the United States—the baker gets 57.4 cents; the wheat grower, 16.8; the retailer, 14.5; the miller, 6.1; trans portation, 4.4; and the grain elevator, 0.8. As between the baker and the farmer, we think, the baker gets too much. As to the retailer, if the consumers were their own retailers, the cost of distribu tion might be comparatively small, if they use efficient methods. When the people are their own bakers then the picture grows quite different. And when they are their own millers, another profit is eliminated. They are doing all of these things in many places in Europe. When they own the wheat lands and are the wheat growers, as some British societies are now beginning to do, then we have bread produced for use. This course of things is developing in many lands where the capitalist system is in deed being "bombarded with loaves of bread," as the Belgian co-operators say. It works where combined with efficiencv. J. P. W." SALE OF CO-OPERATIVE LITERATURE One of the chief worries of the secre taries of most co-operative educational leagues or unions is the distribution of co-operative literature. Co-operators do not seem to read their books, papers and pamphlets. What is the reason, and what is the cure ? The offices of The Co-operative League have suffered from this apathy. The Staff has asked itself and asked out siders for an explanation. The earliest and most superficial reason given is that co-operative reading is uninteresting reading. But this does not necessarily hold. We have books and pamphlets which are more interesting than many of the books on other serious subjects selling by the hundreds of thousands. Recently the Publications Department of the Co-operative Union of England has begun to agitate this question and try to get a more widespread distribu tion for its publications. And now Professor Gide, the eminent economist and grand old co-operator of France has contributed his thoughts on the subject in the latest issue of THE CO-OPERATIVE OFFICIAL, as follows: "If my two books 'Co-operation' and 'Consumers' Co-operative Societies' found a publisher it was only because he was the same person who, having already published numerous editions of my books on political economy, could not decently refuse the others. ... I myself pub lished, at my own expense, the last edi tion of my book 'Co-operation', and I have not yet recouped myself for the outlay. . . . "Perhaps malicious persons may say that if books on co-operation do not sell well it is simply because they are dull. But it is not the same everywhere. . . . The number of copies of my book 'Co operation' sold in Russia has been, to the best of my knowledge, ten times larger than the number sold in France. Is it not surprising, and humiliating to us, that a country where three-fourths of the population are still illiterate should evince such a thirst for co-opera tive literature? And then Japan sets an example to us. It has set itself to print, to translate, and even to import books on co-operation in foreign lan guages. Of the 255 copies of my 'Co operation' sold by my publisher last year, fifty were ordered from Japan, 210 CO-OPERATION KH jii'll although in that country the French language is still little known. "To compare the number of copies of 'Co-operation' sold by my publisher on the one hand, and by the Federation Co-operative on the other, I find that the former sold in the course of last year 255 copies and the latter only—eleven!'' Apparently this is a problem not pecu liar to the United States. A TIMELY WARNING TO CO-OPERA TIVE MARKETERS Messrs. Hears and Tobriner, in their new book, "Principles and Practices of Co-operative Marketing," give a valuable bit of advice to farmers who are impa tient for their co-operative marketing associations to raise the price of the product. In very many cases it is the co-operatives which have set the price of their wares too high that have suffered the most disastrous defeat. These writers bid the impatient farmers to go slow with this kind of agitation and ponder well the causes for the tremendous success of the five-and- ten-cent stores, the match companies and the Ford Motor Company. C. L. Making History (This article, describing the congress of consumers' co-operatives called l>y the Consumers' Co-operative Union back in October, 1914, is of interest to co-operators who are this month meeting in national Congress at Minneapolis. Tlie article appeared in the November number [Vol. I, No. 7] of the CO-OPEEATIVE CONSUMER, forerunner of CO-OPEBATION. Albert Son- nichsen, editor of tJi-e little magazine, wrote the article. William Kraiis was Business Manager. The Consumers' Co-operative Union had its headquarters in West New York, N. <7.) The writer of these lines has never been accused of being over-optimistic. Eight years of experience in the co-ope rative movement, especially during the state that our American movement is now going through, is a training from which you do not graduate with a super abundance of confidence in the speedy progress of democratic action. The in dividual whose interest survives such a period is forced to realize that our march is slow and tedious and a giving out of too much enthusiasm is dangerous, in that it is likely to be exhausted before the first goal is reached. Yet to those of us who have pushed over the long, weary marches of the past and were present at what was undoubt edly the first representative congress of American consumers' co-operatives, held in New York City on October 11, 1914, there came a keen revival of hope for the future. To us it was very much like reaching a bubbling spring after cross ing a sandy desert. The convention was a success, from every point, of view. Our highest hopes were more than realized. . . . In all. sixteen societies in four states were rep resented, covering a territory from Grey- stone in Khode Island to Philadelphia, Penn., and reaching back to Schenectady, N. Y. However, it was not so much the size as the spirit of the gathering which proved most encouraging. It was obvious that the delegates had come to gether with the determination to do rather than to talk. No doubt this im pression was partly due to the fortunate election of a very efficient chairman, whose gaval struck down mere talk with no mercy. But there was no doubt that the assembly was with him in his brusqueness. There was not one appeal from the decisions of the chair. The proceedings had about them the fire and snap of youth. Young blood predomi nated. . . . The main question is, however, what has this convention accomplished? If co-operation is the medium through which order and civilization is to be established in industry in this country, there is no doubt that this convention will go into American history for having first lifted the battleflag of our national movement. There have been co-opera- CO-OPERATION 211 tive assemblies before, held in other parts of the country, but they have been gatherings of individual enthusiasts, representing themselves rather than organized constituencies. And in all these previous conferences interest in farmers' marketing associations has pre dominated. Beyond question this is the first general conference of consumers' co-operative societies to be held in this country on a representative basis. As such it is the first effort to place the movement on a national footing, even though the societies represented cover only a section of the country. But it is one thing to raise a battle flag. It is quite another thing to carry the fight over into the enemy's trenches. The color sergeant may lead, but he does not fight. If the rank and file do not follow him with set bayonets he may die gloriously and later on he may have his name inscribed in letters of gold in his country's history, but he will never carry the enemy's stronghold. Yet he has done all that could be expected of him. . . . Without one dissenting voice, the program proposed by the organizers of the convention, calling for a federation of all the societies for the purpose of propaganda and wholesale purchasing, was adopted by the assembled represen tatives of those societies. The proposal to organize such a federation was also carried unanimously. Since this plan was announced some time before the actual meeting, there can be no doubt that this action on the part of the dele gates constitutes a pledge on the part of the societies themselves that they will support the plan. It was in the field of wholesale buying that the assembly showed itself inclined to move slowly. Federation for that purpose was declared for in principle, the "in principle" being added as an amendment to the committee's recom mendation, but weakening it somewhat. Probably the record of many failures in this direction had its restraining in fluence on the delegates, but it should be remembered that such failures in the past have been those of enthusiastic in dividuals rather than attempts backed by the whole democracy. However, the committee elected to prepare plans for action in this field has definite work before it. Much w'ill depend on the activity it shows. It is to be hoped it will show a stronger sense of respon sibility than was shown by a similar committee elected by the co-operative societies of Scotland, convened for the same purpose. Months passed and no report was forthcoming. Investigation proved that every member of the com mittee had emigrated to America. For all that the Scottish Wholesale Society was eventually organized. . . . It was in the field of propaganda that the most definite work of the convention was done. So far as the limited time would permit, a general plan was even outlined. Qualifications for membership to the federation were clearly defined and an organization committee of seven was elected to prepare a set of by-laws for the proposed federation, to become effective on being ratified by five socie ties. But most promising of all, definite financial support was voted, advised by the committee at one cent per member per year and doubled by a majority vote of the delegates. . . . The work of the organization com mittee is especially hopeful. With over a dozen examples in other countries to draw from, it should not be difficult to prepare a constitution for an organiza tion corresponding to the Co-operative Union of Great Britain that will be acceptable to all the societies. . . . Once concluded, the work of the organization committee should have im mediate results. Having pledged them selves to support a federation, the socie ties cannot consistently refuse to join what they have themselves created. Some societies may indeed find the revised rate of dues proposed too heavy for their treasuries. Should this prove to be the case with any large number, steps will have to be taken toward a reduction; the amendment increasing the rate pro posed by the convention committee was not carried unanimously. Yet even on the basis of 12 cents per member per year, the working funds of the federa tion will amount to approximately $30 a month, providing that a great majority of the societies fall in line. That is not (If IIJ 212 CO-OPEEATION CO-OPERATION 213 I I enough to rent an office, not to speak of salaries to working officials. For some time to come we must still depend on Yolunteer labor. . . . NOTE.—The chairman for this conven tion was Emerson P. Harris, president of the Consumers' Co-operative Union and also of the Mont claw Co-operative Society. Mr. Bellingham of Schenectady later acted as temporary chairman. The Credentials Committee reported 36 dele gates present representing 16 active societies with a total membership of 2,850. These societies were located at Montclair, Paterson, West New York, and Passaic, all in New Jersey; Albany, and Schenectady, New York; Phila delphia, Pa.; Grey stone, R. I. A Com mittee on Propaganda was elected, also a Committee on Wholesale Organisa tion. Extensive recommendations were, brought in by the former committee. The Committee on Wholesale recom mended an investigation of the existing "Co-operative Wholesale Corporation." It also recommended that a standard set of co-operative accounting forms be pub lished. Two eminent visitors were granted the floor: Prof. John Graham Brooks, veteran student and teacher of the Co-operative Movement, from Cam bridge, Mass., and Mr. Baldwin, from the co-operative at Manchester, Eng land. In the evening many of the dele gates attended a banquet given by the co-operative restaurant situated near the assembly hall. Foreign CO-OPERATORS BEAT PRIVATE MERCHANTS IN REDUCING PRICES Consumers in all countries have to thank the International Labor Office for the excellent study it has made of com parative prices of goods in co-operative and in private stores in many countries. The greatest care has been exercised in every case to see that the comparisons are absolutely fair. The results in all instances reflect greater credit upon the co-operatives. For instance: In lower Normandy 3 chain or "multiple" stores, 3 private independent stores, and the Co-op were compared as to prices of 20 standard articles of food. Prices at the chain stores averaged 6.3 per cent higher than at the co-operative, and prices in the independent stores 13.2 per cent higher than at the co-operative. A similar study made in Switzerland compared prices in the societies affiliated with the Swiss Union of Consumers' Sjo- cieties with those in the stores which are members of the Swiss Grocers' Associa tion. In October, 1925, the Co-ops' prices beat the prices in private shops on 18 commodities, held even with them on 3, and were higher on 8. In November the Co-op prices were lower on 25 arti cles, even on 3 and higher on only 1. A third study made in France com pared prices charged on 30 articles of food in the central co-operative with prices charged in the private stores of several of the surrounding towns. The first town was that in which the Co-op had its headquarters; the second was a town in which the co-operative had no branch store; the third and fourth were places in which co-op branches existed; the fifth a town where a co-operative is just being opened; and the sixth a com munity having no co-operative store. In every single article in every town, the price charged by the private or the chain stores was higher. But the more inter esting discovery was this: that in towns where the co-op was well established, the prices in all the other stores were uni formly low (though still higher than they should be), while in the town where the co-operative is just being established the prices in the private stores average considerably higher; and in the towns where there is no co-operative branch at all, the prices are sky-high. All of which shows that the co-operatives not only reduce the prices to co-operators, but bring down the general price level for everyone. A somewhat similar study in Hungary compares prices in private butcher shops before the co-operative started business with prices, in the same private shops six months after the co-operative had opened its own meat stores. The private meat dealers reduced their prices on an aver age of 20 per cent during those six months. Studies of this nature have been made by municipal and state authorities as well as by co-operators. In Essen, for instance, such a statistical study showed that prices charged by the consumers' societies were lower than those in private stores in 74 instances and higher in only 11 instances. The State also made comparisons of bread prices in Stockholm and in Gote- borg, Sweden, and found co-operative prices very much lower. As a result, recommendations were made to the King that 10,000 crowns be appropriated to promote the co-operative movement, and that in addition, instruction in co-opera tion be instituted in certain central schools. In England the Royal Commis sion on Food Prices studied delivery and service costs in co-operative and in pri vate stores and found the former lower in every instance. A similar study made of the Coal Trade by the British Government re sulted in figures wholly favorable to the co-operatives selling coal. THE IDEAL CO-OPERATIVE SOCIETY "So far, I am glad to say that all attempts to govern co-operation by other than our own ideals have failed. Here, as in no other organization, we are bound by a common mind and unity of purpose which has risen superior to the barriers of language and of race and the differences of natural outlook and temper. "In co-operation so far, we have the one and only social movement where every man has an opportunity for doing what he is best able to do, to perfect society without question as to his work or class or wealth or political or religious faith. And having chosen the co-opera tive way as a means of expression of what we desire most in social and eco nomic life, let us stick to that belief in our method and in our work. Co-opera tion is not a means to some other end; it is an end in itself. It is not an auxil iary upon which something extraneous shall rise to take its place and power. It is not something to tack on as the propaganda to a political party, trade union, or class. If anyone wants to share in our faith—to share in it honestly— let him share in it on the faith within, and not on the belief of some other pro gram that is without. We must not replace that faith which is within. Any confession to the contrary on any co- operator's part is a confession of our own weakness, and of disbelief in the efficiency and efficacy of our own cause. Any association that is from without must shape us to a pattern other than our own. Nothing that we profess can be translated fully into practice through any other organization whose objects may be good, but whose conception of life, and life in society is different to that we can see. Sympathy we have with every organized body, nationally and internationally, whose purpose for the betterment of moral, social, economic, ethical, and religious conditions is good and for some purpose, but let us remem ber this, that politics and politicians and trade unions are concerned with plans and programs in a state of constant flux. Party views always narrow the mind and render nugatory the possibility of any commonwealth of practice and opinion.'' From The Ideal of Co-operative Society, By SIR THOMAS ALLEN. CO-OPERATIVES IN RUSSIA The consumers' co-operatives in the Soviet Union now have a membership of 11,000,000, according to a bulletin re ceived by the Eussian Information Bu reau, Washington, D. C. The system embraces 26,457 societies which conduct 53,466 stores as compared with about 42,000 stores a year ago. The turnover during the fiscal year ending Sept. 30, 1926, is estimated at upwards of three billion dollars as compared with $2,008,- 000,000 during the fiscal year 1924-25. A STUDENTS' LIST OF WORKS ON CO-OPERATION The Horace Plunkett Foundation, London, has just issued (through the Co-operative Reference Library) one of the best bibliographies of co-operative 214 CO-OPERATION CO-OPERATION •215 reading that we have seen for a long time. There are six sections to this little 20-page pamphlet, as follows: Section I. Agricultural Co-operative (General Works, Theory, Organization, etc.). Section II. Industrial Co-operation (Productive and Distributive). Section III. Co-operation in Specific Countries (Principally in the Agricul tural Movement). Section IV. Co-operation in Marketing. Section V. Co-operative Credit (Mainly Agricultural). Section VI. Miscellaneous, e.g., Rural Economics, General Economics, Agricul ture, Land, Country Life, Labor, etc. The pamphlet may be procured from The Co-operative League. MAMMOTH EDUCATION FUND IN MANITOBA The Manitoba Co-operative Wheat Producers, Ltd., makes the boast that it devotes a larger sum of money to educa tional work, in proportion to its member ship, than any other co-operative in the world. This Association sets aside one- twentieth of one cent per bushel of grain handled for its educational and publicity department. In the season just closed this amounts to $23,000, or an average of nearly $1.50 per member for the 17,500 members. A large library is being built up and members encouraged to borrow books by mail. The Scoop Shovel, official organ of the association, is one of the best edited and livest papers in the co-opera tive marketing field. The Rochdale Pioneers was the first Co operative Society established on the prin ciples of a fixed rate of Interest on Shares, the division of the surplus on Members' Purchases, and the method of trading for CASH ONLY. Their first shop was the first "Store" opened. Their first year's Sales were 710 pounds, the members numbered 74, and their Capital was 181 pounds. In 1924, the Sales were 663,291 pounds, the members 25,225 and the Capital 459,258 pounds. News and Comment FARMERS IN REVOLT By JAMES D. GRAHAM The first sign of rebel action on the part of the farmers of the Northwest to right their grievances took place in Sher idan County in the northwest part of Montana, when a mob of farmers for cibly made a deputy sheriff, who was trying to evict a mortgaged farmer, swallow a pint of castor oil. Oscar Collins, deputy sheriff, had been sent by District Judge Frank P. Leiper to dispossess Melvin Grandrud, a mort gaged farmer. The farmers of the sur rounding country learned that the officer of the court was about to eject their neighbor from his home. They gathered in force on the ranch of Grandrud and remonstrated with the officer that it was not right to dispossess the farmer before his crops were harvested, even if the mortgage on the farm had been fore closed. The officer took a firm stand and told the farmers that he was going to do his duty and evict Grandrud. Then the farmers took a firm hold of the officer of the court and forced him to swallow a pint of castor oil and sent him back to Judge Leiper to report progress. The affair is the culmination of a long series of fights between eastern bankers and insurance companies, on the one side, and the farmers on the other, to get possession of the farms just before the crops have been harvested, thereby get ting possession of the fruits of a year of toil on the farm as well as the mortgaged land. What action is being taken against the farmers who prescribed the castor oil is unknown, as a censorship as rigid as existed during the war is now being exercised by the legal authorities and the corporation-owned press. Only one daily and one weekly newspaper carried stories of the event. Since then complete cen sorship has prevailed. PRODUCERS' CO-OPERATIVE INDUSTRIES IN THE UNITED STATES The editors of the Monthly Labor Review (U. S. Dept. of Labor) have just completed an interesting study of co- •operative workshops in the United States. Here are some of the facts set forth. Thirty of the 69 societies investigated have failed during the past few years, or have be come ordinary joint-stock companies; 21 of the remaining 39 rendered reports. Of these, 13 are in the far Northwest, 3- in the Central States, S in the Northeast, and 1 in the Southeast. The average age of the societies is ten years. Total employees number 1,300. All but four of the societies observe an eight-hour day, and 15 pay the union scale of wages. Average paid-in capital is $51,275; average annual busi ness during 19,25, $337,500; average profit for the year (for 1.2 societies making profit) $20,700. Average number of shareholders is 11'6; average non-shareholder employees num ber 67 per shop. The industries are as follows: Shingle mills ................... 6 Cigar factories .................. 4 Fish canning and sales........... 3 Glass factories .................. 2 Laundries ..................... 2 Shoe factories .................. 2 Potteries . . .................... 1 Veneer factories ................ 1 Average sales per society were $436,000 in 1920, but they have declined rather steadily since then, until the present low figure of $237,500 was reached in 19S5. In all but two of the societies, profits are divided on stock rather than upon wages. The editors of the Monthly Review make the following interesting comment upon the workshops. "The co-operative workshop is exposed to a temptation not present in other forms of co operation. In the consumers' society, it is to the interest of the members to enlarge the membership, for each new member helps to increase the business of the society. The in creased volume of business reduces the over head expense and increases the savings. . . . In the workers' societies the situation is exactly reversed. Every additional member increases the number who must share in the profits, though not necessarily increasing the business done or the amount of profits to be shared. Each new member, therefore, is apt to be looked upon as reducing the profits of the others. Especially if the society achieves busi ness success, there may develop an increasing tendency among the members to limit their numbers so as to retain all the savings from the business for themselves, and if additional workers are needed, to secure these as em ployees, not as members ... an exclusive membership policy is understandable and ex cusable. In direct proportion as this occurs, however, the society loses its co-operative character. "These societies could not, therefore, be judged by the same strict standard as the consumers' societies. In the consumers' move ment, while material benefits are desired, there is usually also a strongly ethical quality, a vision of something above and beyond the shopkeeping activities, with shopkeeping sim ply a first step toward a better ordering of society to be striven for patiently but hope fully in the interest of all consumers. This may not be true of all co-operators nor of each individual society, . ... but it is true of the consumers' movement as a whole. This wider vision seems to be less characteristic of the workers' productive societies, and in some in stances complaint is made of lack of co-opera tive spirit even in the email sphere within the company. One report states that 'the greatest difficulty is making the stockholders work toward the success of the business and not just a job. It is hard to convince them after a few losing years that the success of the business will mean theirs. . . . About the easiest thing they do is vote for a raise in wages.' " i NEW EDUCATIONAL CAMPAIGN AT WAUKEGAN With the founding of a new Educa tional Department under the direction of Oliver Carlson, the Co-operative Trading Company of Waukegan, Illinois, is launching a very extensive educational drive this autumn and winter: whether too extensive or not for the health of its financial reserves remains to be seen. Weeldy employees' meetings are to be held for eight weeks. English for for eigners will be taught to all co-operators desiring the course, with classes twice a week. Popular lecture course will be given, with lectures twice a month. A series of meetings for women will be given on Thursday afternoons, with the ultimate aim, of starting a Women's Guild. A Co-operative Employees' Handbook will be printed; and the Go-operative Call published as hereto fore. Efforts will be made to arrange I . ' J' H ' mi\ \ • III! • B 216 CO-OPERATION CO-OPERATION 217 joint educational and propaganda work in conjunction with the six other co operatives in the immediate vicinity. Classes will be held one night each week in the following subjects: Aim and History of the Co-operative Move ment; American Social and Labor His tory; English. Four leaflets are to be published and distributed broadcast as propaganda material. They are to ap pear in five languages. A Junior Co operative League is being planned for the children. Meanwhile sales for the Trading Com pany continue to climb. Business in the Dairy department, the Grocery depart ment, the Meat department, and the Branch Store increased during the first half of 1926 by nearly $39,000 over that of the same period in 1925. Every de partment showed a gain. Sales during 1926 should go above $550,000. WAGES AND DIVIDENDS ON THE NEW YORK TIMES There is no greater newspaper in the world than the New York Times. Re cently this enormous institution cele brated its 75th birthday with a special rotogravure supplement of 75 pages. From the great mass of statistics there presented, the following has been extracted: 16 stockholders receive an average of $111,900 each per year. 25 (approximate number) executives receive very fat salaries. 3,000 employees receive an average of about $2,000 per year. 600,000 consumers receive 70 or 80 pages of news, opinion and advertise ments, at the cost of 2 cents per diem. The stockholders invested $1,000,000 originally and have received more than 1,000 per cent dividends for owning the paper. The workers invest their time, their labor, their very lives and get something less than $40 per week. The reader drops 2 cents in the box each morning and gets the largest dose of capitalist propaganda and commer cial advertising ever administered at so low a rate. From The League Office BOOKS FOR CHRISTMAS SALE BY THE CO-OP There are two books just off the press which make excellent co-operative litera ture for stores to carry in stock for co-operators who want appropriate Christmas presents. CO-OPERATIVE DEMOCRACY, by Dr. J. P. Warbasse, President of The Co-ope rative League, has been revised during the past summer and will be off the press early in December. Current in formation about the movement has been brought strictly up to date. This is the outstanding authoritative book in the United States for students of co-opera tion, for workers in co-operative busi ness, and for people generally interested in present day economic and social problems. The new edition is one-third shorter than that of 1923; the treatment is much more concise, and thus better adapted to the use of the person who "reads as he runs." The publisher's price will probably be at least $2.50 retail. The offices of The League will have copies which can be sold to co-operative stores or to others interested in procuring this book for Christmas gifts at $1.50 each. THE ANIMALS' CO-OP BOOK: OSWALD AND OLIVER. This is a beautifully colored edition of the original booklet by this name which was published sev eral years ago by the Co-operative Wholesale Society of England. It is the humorous portrayal in word and picture of the adventures of a whole zoo-ful of animals who first experiment running their own co-operative store and then start off on a world tour to inves tigate the co-operatives of other lands. The experiences in the store are very interesting. The Secretary Bird keeps the books. The squirrel, when he cashed (Concluded on page 218) CD CN Ol O CO g g m o EH in" CM Ol g s .. CJ-U SS EH O 03 O n § g ° ? o fc <3 C3 Eq PH § 3 I s § g « 6 q tJd SCO S j§f< ^ o S c g «£^ es HHOOOTHCOCOCO •^cooiot-io^c- lo^coocxicoiooi o Ol CXI CO in CO o c- CN ^^ ^H O^ o o i* o co o co cxi CN TH 10 TH CO O CO t- o ca t- o 01 cxi 01 • t- 01 O O Ol 10 O CO H O 10 CO CXI o o o t- o IO O O t- •* CO CO O t- CM O CXI CM 00 T-H CO O CO CD S i—i • cc 'xpenses: Salaries Purchase -1— i P: - • * •t-H ^ 03 Cfi Printing Postage Outside ^H M GJ 6JO Travelin § o OJ rH Miscellai . . . . • • CO ...... -CD co 01 TH" •ee- 0 TH CXI CXI cq_ CM" o o o CN CO 10 °1 TH" •<* o TH TH Ol O OO CO CO CO co o •*_ CM" CO o CO co CM CO CO CO CM CXI oo CO 10 in 01 OOCOCOlOt-CXIlO' 10 O t- (M CXI CO Ol t- i I O •<* O IO TH IO 00 TH CvlCO .-- - '- ' CXI O • 10 co • 0" _ . _> cxi rfi 10 - I CXI TH CXI CXI CXI CXI C- CM 10 CO co of -tfiF CD O IO 10 CO 83 s I—I 03 <& <& 6JO § § •s EH t- oo 01 in o era- tive Movement, owned by and con ducted under the auspices of The Co-operative Union of Canada. Published monthly 75c per annum CO-OPERATION, 167 West 12th Street, New York. Please send CO-OPERATION for one year to Name. . . ................................ Address........................-••••••• $1.00 a year. 220 CO-OPERATION PUBLICATIONS — OF— THE CO-OPERATIVE LEAGUE HISTORICAL Per Copy Per 100 \ 3. Story of Co-operation .............$ .10 7. British Co-operative Movement..... .10 38. Consumers' Co-operative Movement in U. S., 1926................. .10 39. Consumers' Co-operative Societies in N. Y. State (Published by Con sumers' League ................ .10 59. Co-operative Movement in Europe.. .05 64. Progress of Co-operation in United States. ..................... -05 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 Denned... .10 9. How to Start a Co-operative Whole sale ........................ -10 27. Why Co-operative Stores Fail...... .02 2. Co-operative Store Management..... .10 14. How to Start and Run a Women s Guild....................... .05 15. How to Organize a District Co-opera tive League ................... -10 29. Credit Union Primer (By Ham and Robinson). .................. .50 43. Co-operative Housing ............. .10 50. A B C of Co-operative Housing.... .10 51. Model Lease for Co-operative Apart ment House ................... .10 MISCELLANEOUS 16. 46. 11. 12. 33. 13. 34. 30. 41. 42. 53. 55. 57. 60. 62. 63. $6.00 6.00 6.00 4.00 4.00 4.00 2.50 1.00 1.75 1.25 Model Co-op State Law............ .10 Producers' Co-operative Industries.. .10 Control of Industry by the People through the Co-operative Movement .10 Credit Union and Co-operative Store .05 Credit Union and Co-operative Bank .05 The Place of Co-operation Among Other Movements .............. .25 Co-operative Movement (Yiddish).. .02 "When the Whistle Blew" (Story, by Bruce Calvert) .............. .06 Social Aspects of Farmers' Co-opera tive Marketing (By Benson Y. Landis). .................... .25 Co-op Homes for Europe's Homeless .10 Real First Aid for the Farmers.... .05 A Better World to Live In. ....... .05 How a Consumers' Co-operative Dif fers from Ordinary Business..... .02 The " Moral Equivalent " of Jazz... .02 Buttons (League Emblem in 3 colors) 54 inch diameter........ Sign or. Transparency of League Em blem. Green and gold, 8 in. diam.. .25 15.00 ONE-PAGE LEAFLETS (One Cent each; 50 Cents per TOO; $2.50 per 500; $4.00 per 1,000.) (1) Principles and Aims of The Co-operative League; (18) 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 Move ment?; (45) Schools and Stores; (47) A Man's Right to a Job; (48) Tips to Co-operators; (49) The Way Out; (61) Co-operation Brings Disarmament. .60 3.00 MONTHLY PUBLICATIONS CO-OPERATION—(In bundle lots, $7.50 per hun dred). Subscription, per year............. .$1.00 HOME CO-OPERATOR, 4 pages...... .$1.00 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 Move ment. They may be ordered through The League: Bergengren, Roy F.: Co-operative Banking, A Credit Union Book ..................... $3.00 Blanc, Elsie T.: Co-operative Movement in Russia . . . . . . . ....................... 2.50 Brightwill, L. R.: Animal "Co-op" Book—For Children............................ .15 Faber, Harald: Co-operation in Danish Agricul ture, 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 American edition and notes, 1922. Cloth, $2.00; paper bound ..................... .90 Hall, Prof. Fred: Handbook for Members of Co operative Committees ................... 2.00 Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Paper bound........ .60 Holyoake: Rochdale Pioneers ................ 1.00 Howe, Fred C.: Denmark, a Co-operative Com monwealth, 1921 .........I............. 2.00 Jessness, O. B.: Co-operative Marketing of Farm Products ......................... 2.50 Madams, J. P.: The Story Retold............ .50 Mears and Tobriner: Principles and Practices of Co-operative Marketing. ...'............ 3.20 Nicholson, Isa: Our Story................... .25 Owen, Robert: Autobiography .............. .50 Potter, B.: Co-operative Movement in Great Britain.............................. 1.00 Redfern, Percy: The Story of the C. W. S..... 2.00 Redfern, Percy: The Consumers' Place in So ciety, 1920 ............................. 1.00 Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918 ........................ 1.00 Smith-Gordon and O'Brien: Co-operation in Denmark. . . . . . . .................... 1.00 Smith-Gordon and O'Brien: Co-operation in Many Lands, 1920 ..................... 1.50 Stolinsky, A.: The Co-operative Movement. (In Yiddish). ............................ 1.00 Warbasse, James P.: Co-operative Democracy.. 2.50 Webb, B. and S.: The Consumers' Co-operative Movement, 1921. Board, $2.00; cloth..... 5.00 Webb, Catherine: Industrial Co-operation, 1917. 1.50 Woolf, Leonard: Co-operation and the Future of Industry . . . . . . . ..................... 1.00 Woolf, L.: Socialism and Co-operation........ 1.50 Co-operation in Great Britain and Ireland, paper .25 CO-OPERATION, Bound Volumes, 1915 to 1925 inclusive, each ......................... 1.25 Transactions of Second American Co-operative Congress, 1920 ......................... 1.00 Transactions of Third American Co-operative Congress, 1922 ......................... 1.00 Transactions of Fourth American Co-operative Congress, 1924 ......................... 1.00 Northern States Year Book, 1926. Paper..... .25 The People's Year Book, 1926. Cloth, $1.00; paper bound ........................... .60 (Ten cents postage should be added for books which cost more than $2.00, and five cents for the smaller books.) A magazine to spread the knowledge of the Cooperative Movement, whereby the people, in voluntary association, produce and distribute for their own use the things they need. Published Monthly by THE CO-OPERATIVE LEAGUE 167 West 12th Street, New York City J. P. WARBASSE, Editor Entered as Second Class matter, December 19, 1917, at the Post Office at New York, N. Y., under the Act of March 3, 1879. Price $1.00 a year. VOL. XII, No. 12 DECEMBER, 1926 10 CENTS -** .- ' 'JH *,,,3^r r r. m^ **£»?.- Arf**,— '. -:' HOUSE OF THE UNITED WOKKEKS-' CO-OPEEATIVE ASSOCIATION. TMs is the largest co-operative housing development yet attempted in the United States. The houses shown above cover an entire city block. Begwmlng earl/y in December the first families. will move in, and within a few weeks the entire 339 apartments will lie occupied. The Association also owns four mare blocks to the North of this one and already has members who have put down money enough to engage most of the apartments in ih& second block of houses and part of the third. In the foreground is the edge of the beautiful Bronx Park. All five of. the pieces of land owned by these co-operators are bordered by this Park. 222 CO-OPERATION Co-operative Housing De Luxe In the September number of CO-OPERATION appeared the story of the co-operative camp which is being so successfully run by the United Workers Co-operative Association. The camp is of secondary importance to the Housing Department of the Association's work. For many years a small group of workers leased an old apartment house on Madison Avenue and experimented with the co-operative housing idea on a small scale. At the beginning, in fact, it was only one floor in a privately owned house. As new members came in, the group not only took over the whole house, but started a co-operative restaurant for its members, organized a library and music room, and extended the social features of the institution. Three years ago the camp at Beacon was started; and the immense popularity of this encouraged, nay, forced the Directors to consider expansion not only of the camp but of the city apartment side of the work as well. The present rapid development of the work in the Bronx section of New York City is a result of a series of earnest consultations. More than one year ago the Association purchased an entire city block closely abutting on Bronx Park, and both members and friends were informed of plans for a huge housing development. The response was so immediate and large that the Directors at once decided to obtain an option on a second block, then a third, finally a fourth and a fifth. To-day payments have been made on all this land (and some additional land in an unrestricted neighborhood nearby where stores, playgrounds, and other features may be developed). About a year ago architect's plans were approved and work started exca vating for New York's largest single co-operative housing colony. To-day the houses on that first piece of land are completed and tenant-members are moving in. At the same time plans are perfected for the second block of houses and members are already signed up for most of the apartments there as well— though they know that they cannot move into their new homes before the end of next summer. In fact, there are members signed up for the third block of houses, which will not be ready for more than a year yet. WHAT THE HOUSES ARE LIKE ' The first group of houses contains four units surrounding a large central garden. There are sixteen entrances; 963 rooms are divided between 339 apartments. Most of these apartments contain three, four or five rooms, includ ing a kitchen and a bath. But in one unit there are "Bachelor Apartments," designed exclusively for single men or women or married couples without chil dren. Fifty-seven rooms are devoted to these "bachelors," who will live one or two in a room. There are 12 rooms and one kitchen to a floor in this depart ment, the kitchen privileges available to every person on the floor. The first floor is set fully ten or twelve feet above the ground level, thus removing the people on the first floor from the immediate contact with the street and sidewalks. At the same time this feature makes it possible to have basement rooms which are wide open to light and air. In the basement are located an Assembly Hall, a Dining Hall, a Library, a Gymnasium, and electric laundries. Two oil burning heating plants keep the buildings warm in winter, and four water heaters supply the apartments with hot water. All apartments have cross-ventilation, large windows, all the most modern conveniences. One of New York's well known doctors, Dr. Liber, is to live in the buildings and have offices there. A dentist's office will also be maintained. A kindergarten and day nursery will be organized among the mothers who want to leave their children during the day and be assured that they are well cared for physically, mentally, and morally. The roofs will later be used for a roof CO-OPERATION 223 garden, but this feature must wait upon the more pressing demands on the executives. WHAT OF THE FINANCING? The total cost of the first block of houses is $1,525,000. Negotiations are now on for a first mortgage of $1,150,000; $250,000 is being paid in by the tenant-members. The balance is being raised by a bond issue to which either member or non-member co-operators may subscribe. Tenants make an initial payment of $250 per room ($50 extra in the case of kitchenette apartments, of which there are a few). Those living in the Bachelor Apartments will pay $250 down for the room plus $25 per person for furniture. Monthly charges, covering upkeep and maintenance plus capital charges and amortization of mortgages amount to $13 per top floor room or $14 per room on first or second floors. This is for ordinary apartments with full-sized kitchen. Kitchenette apartments will carry monthly charges ranging from $15.50 to $18 per room for the two-room apartments, and charges from $14.50 to $16 for the three-room apartments. The Financial Keport of the Association for the half year, ending June 30, 1926, is an imposing document of nine closely typewritten pages. Older and more experienced co-operators might be justified in viewing with some skepticism such rapid expansion into large figures and large operations on the part of workers so new to large-scale co-operative business. Total assets for House No. 1, House No. 2, the Finance Corporation, and the Camp are $890,297.90; $117,517 of this is listed under Current Assets and the rest Fixed. Capital Stock outstanding is $13,754.70, and members' invest ments $218,022.57 (most of which is in the Houses). Income from the Camp for six months is $21,475. There is no income yet from operations of the houses. The Finance Corporation has taken in $6,266.78; has had expenses of $1,733.48, and the net gain from date of organization is $4,533.30. OTHER ACTIVITIES OF THE ASSOCIATION The Camp run by these 1,800 co-operators has been already mentioned. The subsidiary "Consumers' Finance Corporation" was organized last year to assist in the financing of the houses and the Camp; $50,000 of common and preferred stock has already been issued. All the common stock is held by the United Workers Co-operative Association. The Swimming Pool, originally planned for the basement under the first set of houses, had to give way to other demands, and is now being planned as a part of the second group. The Children's Playground will be laid out on a separate strip of ground purchased for the purpose and situated a block or two to the east of the land occupied by the houses. Plans are now being formed for the starting of stores and a bakery in the near future. Meanwhile a moving picture is being made of the entire development to date; considerable publicity is being given to it in the Freiheit and other workers' papers. WHO AKE THESE FOLKS AND WHAT ARE THEY AIMING AT ? Most of these young men and women are Jewish workers in the clothing and allied trades of Greater New York. However, there are Gentiles among the members, and there are even one or two Negroes. Furthermore, there are workers in cities as far West as Pittsburg and Chicago who have joined the organization. A membership costs only $5. Only members may live in the houses, and they must put down the larger payment of approximately $250 per room to procure that privilege, but no stock is issued for this larger payment. Ill 224 CO-OPERATION CO-OPERATION 225 In other words, these co-operators have an "All-Purpose" Co-operative such as may be found in all parts of Europe, and in a few places elsewhere in the United States. Cost of membership is set low so as to be within the reach of everyone. Then the various activities must be financed separately by those who use them. The entire membership, however, in the central United Workers Co-operative Association owns and ultimately controls all the activities through its Board of Directors. The President is G. Halpern; the Organizer, D. Gerson; the Secretary, S. C. Cohn. These people are frankly and openly apostles of the Struggle of the Work ing Class to gain emancipation. They admit to membership none but those who are primarily wage workers or salaried workers. Private business men or employers of labor are excluded from participation in the activities of the organization. Thus the members, or the leaders at any rate, while they aim at the com plete co-operative control of the housing, feeding and credit requirements of the entire membership—a purpose which is absolutely in line with the Rochdale Co-operative Movement at its best anywhere—at the same time consider their movement a vital part of the Labor Movement whether on the industrial or the political field of endeavor. Vital Issues PROFITABLE INDUSTRY "Industry should be profitable," Mr. Owen D. Young, head of the Gen eral Electric Company, told the National Industrial Conference Board. He fur ther said, "I have no sympathy with indictments of profits. They are the motive power of our economic system, and why deny it or apologize for it?" That is right: industry should be profitable. And what is more, we will go Mr. Young one better, and say, it should be profitable to the owners. We have no quarrel with Mr. Young in this matter. However, we do think industry is unnecessarily complicated and indirect. It fails to hit the mark. All sorts of industries are run to pro duce things which the people use. But the purpose of these industries is not to produce the things for use. Instead, the industries are run to produce profits; and with these profits the people buy the things they want to use. What would Mr. Young say to ex panding the owners to include the users of the products of industry, and making the working of industry direct and to the point? Most likely he would ap prove of the theory for service; but he would say, "It can't be done." That is what many are saying who do not know that fifty million people are doing it. J. P. W. IS THE AUTO AN INDEX OF PROSPERITY? In that otherwise excellent book, "Principles and Practices of Co-opera tive Marketing," published this year by Ginn and Co., we find that the authors make the popular mistake of holding up the auto-owning farmer as an Exhibit I of prosperous American agriculture. It is a very easy fallacy for anyone to fall into. Merely quote the number of automobiles owned on American farms and you have established your case. Is not the automobile an expensive luxury? And are there not more of them in the agricultural districts of America than in all the countries of Europe, Asia, Africa and South America combined, rural or urban? Mahatma Gandhi, the great prophet and social leader of India, would tell us that the very large number of autos owned by our farmers is an indication of our spiritual poverty. But this is not what we mean, either. In competitive business there is an iron law which compels the crowd to follow the user of the advanced inven tion. Men do not to-day send their freight to Europe in steamers rather than in sailing boats merely because they are more prosperous; they do it because they could not compete with other business firms if they used the antiquated square rigger. The city milkman does not deliver your milk by horse-drawn wagon in preference to the old oxcart, merely because he wants to display his fine stock of horses. He has given up oxen because he would be in the bankruptcy courts in a few months if he tried to use the ox cart in competition with the horse drawn delivery rig of his rival. Doubtless there are plenty of farmers who have automobiles merely for the pleasure they get from riding them selves and their wives in them. But to day the automotive vehicle has become an absolute necessity on most of our large farms, and on most of the small farms as well, if they are located at a distance from town. They are as neces sary as the iron plow, which supplanted the wooden plow centuries ago. If the average farmer gave up his Ford he would not be saving money; he would merely be driving himself still faster toward the foreclosure court. C. L. GETTING CLOSE TO THE FUNDAMENTALS "Co-operative stores may fail. Co operation never fails," said Uncle Joe Critchley, veteran co-operator of Illinois, and "father" of the Glen Carbon So ciety, at a recent meeting of co-operators in Central Illinois. A few days earlier at a luncheon in Omaha several of us had been discussing the limitations of the co-operative move ment in the United States. Just how far could it go anyway ? What were the insurmountable obstacles? Some spoke of management; others of competition by great capitalist corporations; still others of incompetent boards of directors. "There are no limits to co-operation except the limits of co-operative under standing among the members,'' remarked President Keeney of the Nebraska Farm ers' Union. "The Co-operative Move ment will go just as far as our co-opera tive education goes; and no further." These wise statements are not new to old and experienced workers in the movement. They have been made many times before. But they are new to very many directors, managers, and chairmen of educational committees in the co operative societies of America. There is a pitiful lack of appreciation of these simple but profound truths on the part of hundreds of men and women who con sider themselves co-operative leaders in their respective communities. And this failure of our so-called "leaders" to recognize the essentials is the chief cause for the slow growth of co-operation among these 110,000,000 people in the United States. In all sections of the country we find earnest souls, presidents of large socie ties, ardent propagandists for the move ment, men and women, seeking short cuts to co-operative success. This one is making a diligent search for a man ager who is just a little cleverer than the private merchant across the street. That one is trying to devise a short route from the producer to the consumer, hug ging the fond delusion that co-operative success may be built upon favorable buy ing. A third is putting his time and energies into devising a snappy set of advertising stunts to attract the crowd of fickle shoppers. And a fourth relies entirely upon the tricks which were pop ular before the days of Adam and Eve of bally-hooing throughout the commu nity the dividends, the premiums or the other baubles that the co-op hands out to those who are good enough to buy its wares. Meanwhile there are a few Uncle Joe Critchleys or President Keeneys preach ing the true gospel of co-operation. We need many more of them. Can we get them? C. L. WE LOSE A FRIEND IN EUGENE DEBS Since the organization of The Co operative League, Gene Debs has been one of its staunchest friends. At each Congress (until this last one) greetings came from him to "the co-operative comrades." And between Congresses we knew him as a friend. With the hosts of others who cherished his friend ship, we share in the tributes to this Radical, Humanitarian Friend of Pace. 226 CO-OPERATION CO-OPERATION 227 President's Address FIFTH CONGEESS OF THE CO-OPEEATIVE LEAGUE MINNEAPOLIS, MINN. By J. P. WARBASSE * Ten years have passed since The Co-operative League began its work. These have been important years for the Co-operative Movement in this country. It has learned much and made some progress. As we look back over the period before this time, we see a country in which every imaginable experiment in the field of co-operation has been tried. Most of these have been made by well- meaning enthusiasts who understood the need for co-operation better than they understood co-operation itself; and it was the need for co-operation that prompted them to make use of a remedy which they were but poorly qualified to administer. We all know what happened from 1846 to 1918. It was not peculiar to the United States; every country in which co-operation has made great progress has passed through a period of bungling, groping and experiment. But in no country has the trial and error stage lasted so long as in this land famed for its efficiency and practical sense. In deed we may ask ourselves if the Ameri can Co-operative Movement is yet any thing more than an experiment. The answer to this question: Have we gotten beyond the experimental stage or not ? is not of great importance. The matter that should concern us is this: Do the experimenters know at what they are driving? Are they carrying on the experiments in the spirit of scientific research, and are they working with due regard for the importance of established facts and standards ? So far as The Co-operative League is concerned, I think we can say that for the ten years of its existence, it has had especial interest in the collection of information, the analyzing of facts, and making available for co-operative devel opment the truths thus acquired. The progress has been slow, arduous, and at times discouraging. Neverthe less, its work has continued always to expand. And the results have redounded to the everlasting advantage of the Co-operative Movement in the United States. At this point we may, with some profit, survey the field in which this work is going on. Here is a country made up of 55,000,000 males, who regard themselves as material for section boss, alderman, sheriff, mill superintendent, pastor, senator, pound-keeper or presi dent of the United States, and 55,000,000 odd females who stand ready to marry them. The laws of the country, the teachings of the schools, the practices and traditions of the people, and the prevalent methods of business are all in the interest of carrying on the eco nomic affairs of society as a profit-mak ing enterprise with the pursuit of privi lege as an adjunct to the undertaking. Thanks to the incalculable richness and the natural resources of the country, this method of business has made us the wealthiest nation, in the world, and has brought the possibility of a compara tively high standard of living within the grasp of the majority of the people. Profit-business functions to the satisfac tion of the masses, the constitution and the laws are interpreted in the interest of the profit system, and the power of police and arms serve it. The vast ma jority of people are satisfied with it. Under these circumstances, what has Co-operation to expect? What hope is there for a movement which would change this picture, which would sub stitute human service for the profit motive in industry, which would abolish privilege, which would install equality of rights where autocracy now reigns, and which would rob the politician of his power to hold up the glittering I1 baubles of promise before the eyes of the people and which would render his periodical can-can dances uninteresting or even ridiculous? We look about the world and see in many other countries a great Co-opera tive Movement. We see it challenging profit business in every field. We see countries in which it embraces the ma jority of the people and supplies them with not only the necessities but the luxuries of life. We see many lands in which co-operative business and co operative factories are greater than any which profit business can boast. We see it even challenging the socialist state. It is demonstrating that the unpolitical organization of the people can perform every useful social function that profit business or the state could administer. But in the United States these obser vations are not pertinent. Here Co operation is a child crying in the wilder ness. It is very small. It can scarcely be seen for the trees. Its voice hardly rises above the roar of the wind in the branches, the crashing of limbs, and the howls of the animals. Still this wander ing child is growing stronger; it is find ing its way; it begins to know what it needs. There are two conditions under which Co-operation can get strength to go for ward in a masterful way in this country. These are (1) by education of the people to want Co-operation and to know how to make it succeed; and (2) by failure of the capitalist system to satisfactorily perform the necessary services. The first of these is in process of de velopment. A steadily increasing num ber of intelligent people are coming to understand the meaning and methods of Co-operation. Already it is possible to find in many communities, wise and capable leadership and groups of indi viduals who believe in Co-operation and who successfully enter upon co-opera tive undertakings. We have training schools to teach co-6perators. In Amer ican colleges and universities instruction in Co-operation is now given by a large proportion of the professors of econom ics, and a steadily increasing number of young men with trained minds are going forth into the world with an understand ing of this subject. It is gratifying to find that books written by American co- operators are used as textbooks in these institutions and complete files of The League's magazine, CO-OPERATION, are kept in college libraries for reference use. Education is doing its work, but the seed will not grow into a tangible plant unless the ground is fertile. And the only fertile ground in which Co operation will grow is that in which there exists a real need for Co-operation to perform services which are not satis factorily performed by other means. As a matter of fact, this need exists in the United States. Goods of poor quality are sold at high prices. Land lords charge for housing more than it is worth. Credit at the banks is sold for prices which yield enormous profits to the bankers. Co-operative societies are needed in every field in the United States to-day, and if efficiently managed and controlled, they can save the people the millions of money that profit-business costs them and at the same time can give them an example of a better life. But if the people are not conscious that they are overcharged, and if they are satis fied with the services of profit-business, then these must be regarded as satisfac tory, and, so far as the average public is concerned, it must be admitted that the need for the development of Co-opera tion does not exist. Thus the progress of this movement in the United States is still slow and fraught with uncertainties. But we who are gathered here in this Congress can guide it and help make ready the way in which it can move onward. It may be expected that circumstances will develop in which Co-operation is urgently needed to give the people access to the essential things of life. The peo ple may grow to a consciousness of that need and a desire to meet it by their united co-operative action. It is for us who are gathered here to see to it that this broad country shall be covered with a network of sound co-operative organ izations, to work steadfastly and whole heartedly to the end that this land shall be rich with people of clear co-operative understanding, men and women who can lay their hands to the task of making the Co-operative Democracy come true. 228 CO-OPERATION The Fifth Co-operative Congress For the fifth time The Co-operative League has held its National Congress: this time in Minneapolis. Preliminaries began with the meeting of a quorum of nine members of the Board of Directors on Wednesday evening, November 3; and the final meeting of ten Directors again on Sunday morning (and part of the afternoon) closed the Congress. THE OPENING SESSION When the Congress proper opened up for business in the East Eoom of the Curtis Hotel on Thursday morning, there were, according to later reports of the Credentials Committee, 65 regular voting delegates, 7 alternates, 41 fra ternal delegates and many visitors pres ent. The 65 who wore the red badges represented 132 consumers' societies having an individual membership of 64,700. People were there at that meet ing from Massachusetts, Washington, Canada, and Louisiana, and many points between. Co-operators from 16 States and two of the Canadian provinces had assembled to swap experiences and to deliberate on the future of our movement. The local address of welcome by Harold I. Nordby, President of the Northern States Co-operative League and of the Franklin Co-operative Cream- cry Association, was followed by election of the various necessary committees. Then came the reading of greetings by letters or cablegrams from 30 unions or wholesales of Europe and by telegrams or letters from labor and allied organ izations in the U. S. The verbal greet ings from the Co-operative Union of Canada were conveyed by George Keen, its secretary. The session closed with the President's Address in which Dr. Warbasse reviewed the past of The League, surveyed the field still to be covered, made suggestions for the future. EEPORTS FROM THE HOME AND THE FOREIGN FIELD After lunch in the dining room of the hotel, the delegates again assembled for further official business: reports; pf the Secretary and the Treasurer, and Dr. Warbasse's report as a delegate to the Central Committee of the International Co-operative Alliance, a meeting of which he had been attending only two weeks earlier in Hamburg. Messrs. Alanne, Woodcock, Warinner, and Mc- Namee, secretaries respectively of the Northern States, the Eastern States, the Central States and the Ohio District Leagues, then reported on the work in their respective organizations. NEW TREATMENTS OF OLD SUBJECTS On Friday morning (Thursday night banquet was a fete which we report on a later page) the Congress re-assembled in the Auditorium of the Franklin Creamery North Plant. A. W. Warin ner opened what proved to be a highly spirited and instructive discussion of Education in the Co-operative Store. The main gist of his argument was that education of the members and patrons, if it is to be attempted at all from the vantage point of the store itself, rests chiefly upon the co-operative intelligence of the employees; and he therefore made his plea for more attention to educating the clerks and the managers of the stores. Others took up the theme, some follow ing this lead, a few trying to show what might lie accomplished by the distribu tion of leaflets and other educational material directly by the Educational Committee or the manager. Among those who participated actively in the discussion were V. S. Alanne, Secretary of the Northern States League. George Keen, Secretary of the Canadian Co operative Union, H. V. Nurmi, Ac countant for the Co-operative Central Exchange. Immedia,telv followiner this, H. V. Nurmi and Werner Regli opened a dis cussion on Co-operative Accounting and Auditing. The former outlined some of the difficulties that have hitherto been encountered in trying to introduce some uniform practices into accounting in various co-operative territories. Mr. Regli took the theme that uniform ac- CO-OPERATION 229 counting practices must wait upon the development of uniformity in manage ment practices, buying methods, even uniformity of terminology. Today we use widely different words in talking about the same things. CO-OPERATION AND THE LABOR MOVEMENT The first talk on this subject was given by George Halonen, Educational Direc tor for the Co-operative Central Ex change. His emphasis was very largely upon the work of the co-operatives dur ing industrial crises in Europe, and the field of helpfulness open to co-operatives in the strike areas in this country. A. A. Siegler, of the Union Consumers' Co operative of Duluth, followed with a talk on the importance of co-operation to the unionist in his daily economic life. At this juncture other matters claimed the attention .of the delegates, but in the evening the discussion was resumed, cen tering chiefly about two resolutions sub mitted by members of the Committee on Eesolutions. As the delegates disagreed on the resolution of the majority of this committee because of the non-co-opera tive implications of parts of it, this was finally withdrawn, after many of the regular and fraternal delegates had ex pressed their feelings on the subject. ON CO-OPERATIVE INSURANCE AND CREDIT UNIONS The subject of co-operative insurance was first brought in by Milo Reno, Presi dent of the Farmers' Union of Iowa and also of the Farmers' Union Life Insur ance Company which now operates for the farmers in nine states. Mr. Reno expanded on the injustices under which the farmers are now laboring, and tried to show what this Insurance Company is doing to lessen the injustices. E. E. Branch, President of the New Era Life Association, who followed, gave a very clear and forceful exposition of the en tire old-line life insurance game of over charging policyholders for the protection they get, and showed how these practices are now made virtually compulsory by the form of insurance law written into the legislation of the various states. He outlined the progress and the form of organization of the New Era Association which, according to his claim, is one of the very few strictly democratic organ izations of its kind which is at the same time entirely on the non-profit basis. The delegates were much impressed with the case as presented by Mr. Branch. After others had talked briefly on the subject, a resolution calling for the ap pointment of a committee to study the entire insurance subject and to make con structive proposals or recommendations to The League was presented. The two chief speakers under the title Co-operative Banking were Eskel Ronn, Manager of the Co-operative Cen tral Exchange, and Eoy F. Bergengren, Secretary of the National Credit Union Extension Bureau. The former picked all possible holes in the credit union theory as now practiced in this country and recommended a drive for legislation permitting co-operative stores to accent savings deposits from members. Mr. Bergengren portrayed the credit union movement as a school in which future administrators of genuine co-operative banks are getting their traininer, a,nd called for more vigorous support for this tvpe of co-operative credit organization. There was much animated discussion from the floor, most of it enthusiastically in favor of the credit union movement. Senator Brookhart, who was to have spoken on national legislation for co operative banking, was prevented from being present by sickness in his family. AND WHAT OF FARMERS' CO-OPERATIVE MARKETING ? The Marketing Movement and its Rela tion to the Consumers' Movement first came on the floor under the sponsorship of A. E. Cotterill, Vice-President of the Iowa Farmers' Union, during the Friday night session. Mr. Cotterill emphasized the difficulties under which the farmers are working and the necessity for their marketing program. The subject was continued the following morning by Albert S. Goss, Master of the Washing ton States Grange, who insisted that the consumers' movement and the producers' marketing movement should work hand in hand. This position was ably sup ported by such other men as Georee Keen of the Co-operative Union of Canada, 230 CO-OPERATION CO-OPERATION 231 Mr. J. T. Hull, Educational Director of the Manitoba Wheat Pool, and Mr. F. W. Ransom, Secretary of the same organ ization. These last three men were finally instructed to bring in a resolution on the Relationship of the Two Move ments, which they did at the next session of the Congress. MOEE CO-OPERATIVE EDUCATION Mr. Alanne, Mr. Woodcock, Secretary of the Eastern States League, Mr. War- inner, Mr. Nurmi and others talked on the Co-operative Training Schools, and a Committee composed of Mr. Long, Mr. Nurmi, Mr. Warinner and Mr. Alanne was finally appointed to deal with the larger and more permanent phases of this vast subject and to work out methods of correlating the school work in the various districts. The Co-operative Tear Book idea, which has been put into action so ably by the Northern States League, was presented by Mr. Alanne, Secretary of that organization. Mr. Long spoke briefly at another session on Educational and Propaganda Posters. THE ACTIONS OF THE CLOSING SESSION At 2 P.M. on Saturday the delegates went into their final session of the Congress. Dr. Warbasse opened what proved to be a lively and highly con troversial discussion of the subject Should Local Societies Hold Direct Mem bership in the National League or Should They Belong Directly to District Leagues First. As the discussion was not organ ized with an idea of getting definite changes of this nature made in the Con stitution at the present time, no final action was taken. Resolutions covering many subjects were introduced by the Committee on Resolutions. Some of these subjects were: Relationship of the League to the Co-operatives of Other Countries, In junctions in Labor or Co-operative Dis putes, Relationship of Consumers' to Producers' Marketing Movement, Co operative Insurance, Mine Disaster in Northern Michigan, etc., etc. THE ELECTIONS The election of Directors who are to serve for three years went through, in conformity with the recommendations of the Committee on Nominations. The Board, after January 1st, 1927, will be composed of Messrs. Alanne, Endres, Goss, Herron, Long, Niemela, Nordby, Ronn, Tenhunen, Walker, Warbasse, Warinner, Warne and Wirkkula, all of whom have been on the old Board; and, in addition, Mary E. Arnold, Manager of Consumers' Co-operative Services, New York; Jacob Liukku, Manager of Co-operative Trading Company, Wau- kegan, Illinois, and 0. Saari, Manager of United Co-operative Society of Norwood, Mass. The new members of the Auditing Committee are K. E. Grandahl, Manager of the United Co-operative Society of Fitchburg, Mass., A. Seldin, President of Co-operative Bakeries of Brownsville, N. Y.. and Otto Arlund, Manager of Brooklyn Workers' Co-operative Home. The following were nominated to act as delegates to the International Co operative Congress at Stockholm next summer, if the trip can be arranged: Dr. and Mrs. J. P. Warbasse, of the National office, Messrs. Warinner and Liukku, of Central States League, Messrs. Tenhunen, Alanne and Nordby, of the Northern States League. SOCIAL EVENTS AT THE CONGRESS They included a Banquet on Thursday evenina1 at the Elks' Club, a Bus Trip shout the city, a Mass Meeting on Satur- dav evening, and an endless number of informal or semi-formal meetings at meal times and in the various committees. Several hundred people filled the hall at the Banquet; music was provided by the Male Chorus of the Franklin Association and by a Trio from the Minneapolis Symphony Orchestra; Harold Nordby presided as Toastmaster, and short speeches were made by a dozen people, among them being Dr. and Mrs. War basse, George Keen. A. W. Warinner. Leroy Bowman (Director, Consumers' Co-operative Services), A. Burandt (Chairman, Educational Committee of Franklin Creamery Association), Albert S. Goss. Two lar^e busses carried the delegates shout the city on the afternoon of Thurs day and brought them back strictly on time for the opening of the second Ses sion. The program for the Mass Meeting was unusually well planned. Music was provided by both the Franklin Male Chorus and the Franklin Band, and various other musical numbers were sup plied by individual co-operators. A group of young people from the Central Exchange at Superior gave several ex cellent song and dance skits interpreta tive of co-operation, and their costuming was excellent. Co-operative dialogues and songs with words composed by the co-operators themselves added to the gayety of the occasion. Mr. Burandt acted as Chairman and introduced as speakers Eskel Ronn, J. P. Warbasse, Harold Nordby and Cedric Long. The closing event of the evening was the showing of the seven-reel movie "The New Disciple" which held the <;rowd until midnight. i THE COMMITTEE WORK Exclusive of the regular committees necessary at all such conventions, special committees were appointed or elected to handle League Finances, Training Schools, Constitution, Co-operative In surance, Health Standards in Co-opera tive Institutions, and Relationship of Co-operative Marketing to the Consum ers' Movement. The Committee on Schools held one meeting, appointed a sub-committee on Courses in Accounting and Bookkeeping. This committee ten tatively put the date for Northern States Training School in May-June, and that for Eastern School in April. The committee also has under advise ment the organization of a National Co operative Correspondence School. The Committee on Finances held sev eral meetings and finally reported on a budget of $9,300 for the fiscal year ahead, $4,800 of which is to come from auditing and other services rendered the societies, and $4,500 to be raised through dues or other direct income from the member ship. The latter figure is $2,500 higher than that of income from dues during the past year; therefore various individuals from the different sections of the country made on behalf of their societies tenta tive pledges of the balance. The Com mittee on Constitution recommended several changes and these recommenda tions the Congress approved for publi cation for future action. BOARD MEETINGS Of the many items of business taken up by the Directors in their two meet ings, the following are the most impor tant: Recommendations were made that the societies in Ohio be advised to join the Central States Co-operative League, if they were not able to maintain an Ohio League. Considerable attention was also given to the matter of income taxes levied against co-operatives, and to the liberal ized interpretation of the rulings made this year as applied to consumers' co operatives. The national office was authorized to proceed with a survey of the member societies to see if sufficient financial support can be rallied to make possible a test case. The officers elected for the ensuing two years are: J. P. Warbasse, President; Harold I. Nordby, Vice-President; Ced ric Long, Secretary; and Mary E. Arnold, Treasurer. The Executive Com mittee of the Board is composed of Messrs. Warbasse, Long, Niemela, Saari and Miss Arnold. THE MEETING PLACES Excellent preparatory work was done by the Committee on Arrangements. Literature tables and stands were pro vided and the Auditorium of the Cream ery Building decorated in green and gold. In addition to the banquet and mass meeting planned by this committee, arrangements were also made so that the delegates could lunch Saturday noon in the Franklin restaurant. Hundreds of colored propaganda, edu cational and advertising posters sent to The League offices by a dozen of the unions and wholesales of Europe (and even from Japan) were on display dur ing the Congress and many a delegate went home well loaded down with samples of this kind of co-operative art. The Fifth Congress is over. May its work increase the prosperity and hasten the progress of Consumers' Co-operation iu the United States. 232 CO-OPERATION Producers and Consumers in the Co-operative Movement* FROM THE VIEWPOINT OF A NATIONAL CO-OPERATIVE EXECUTIVE By GEORGE KEEN General Secretary-Treasurer, The Co-operative Union of Canada The object of production is consump tion. If mankind were not under the necessity to consume commodities there would be no purpose in producing. Does it not seem rather strange, there fore, that most of the ideas advanced for the redress of economic injustice are from the viewpoint of the producer? In this age the interest of the producer in what he produces is almost entirely confined to its exchange values, or, in other words, to the access it will give him to the productions and services of others. The real interest of the producer in his own productions consequently is his interest as a consumer. The co-operative organization of the producer is occupational or sectional. It, therefore, fails to establish equal eco nomic relations amongst all classes of the people. Whether an institution is a trade union, collectively marketing the labor energy of a class of industrial workers, or an agricultural producers' pool, marketing in an orderly way the produce of the farmers' labor energy, the aim of both is to increase the ex change value of the products to the high est extent, regardless of the rights and interests of all the people who actually have to consume the produce of the in dustrial workers' energy or the farmers' crops. The object in both cases is laudable, namely, to secure as much compensa tion as possible for the labor of produc tion. Such organizations may divert from the industrial capitalist and prod uce middleman values to which they are I * This is the eighth of a series of articles under this title. The others have been from the viewpoint of the Social Scientist, the Labor Banker, the Urban Co-operator, the Labor Educator^ the Farmer, the Student of Agri culture, and the Labor Leader. not equitably entitled. It is quite right that they should. But they maintain economic injustice between different classes of producers. There was, perhaps, a time in the early days of capitalism when an in crease in wage scales represented a dis tinct advantage to the workers in the industry without injustice to the con sumer. It meant only a more equitable division between employer and worker of the price received from the consumer for the article produced. Those days have gone. The employers are just as closely organized as the workers. An increase in the workers' compensation is, usually, not at the expense of the employer. It is passed on to the con sumer. In the upward revision of prices following an increase in the cost of pro duction, owing to augmented wage- scales, the employer of to-day feels he is entitled to his usual margin of profit on such increased cost. The profit incubus is pyramided by the manufacturers and the distributors until it reaches the ulti mate consumer. If there were an equality parity of increase in wage scales and of all work ers, agrarian and urban, organized and unorganized, the augmented costs of commodities and services would not be so objectionable. Unfortunately, even among organized workers, there is a great divergence in wages and in pur chasing power accruing to them, as com pensation for their labor. The rate of wages, or purchasing power, is not deter mined so much by the training and skill demanded, or energy expended, as by organizational efficiency, craft loyalty and at times quite subordinate considera tions. For example, the members of one small craft union in my home city, en gaged in what may be called an inci- CO-OPERATION 233 dental industry, enjoy more than double the average compensation received by a large mass of factory workers, produc ing articles essential to the economical and efficient operation of the farms of the country. In that case any increase in the compensation of the small well- paid and well-organized group reduces the purchasing power of the lower wages of the larger group. It is, therefore, possible for one class of workers uncon sciously, or inadvertently, to be engaged in the exploitation of another. It is none the less effective because it is indi rect and unconscious. Exploitation is, consequently, not the exclusive privilege of the capitalist class. Consumers' co-operation has the great advantage of distributing its savings in price, and improvements in quality and service, equitably among all classes of workers. Consumers who are too old or too young to work are also its bene ficiaries. Each enjoys the same in pro portion to the extent he has contributed thereto by his purchases. No class has a privilege over any other. Consumers' co-operation ascertains and mobilizes the demand for merchandise and services, and sooner or later organizes production to satisfy it. What is called producers' co-opera tion is under the necessity of guessing the demand and spending much of its resources in seeking to satisfy it in com petition with other producers' organiza tions and unorganized producers. The organization of consumers' productive industries produces commodities in an economical and orderly manner and solely to satisfy ascertained human needs. The organization of production by and on behalf of the consumers of the world is a logical and equitable solution of the economic problems of mankind. It is the only plan calculated to reconcile differences. It is the only one which establishes a community of interest be tween all. We have, however, a long way to go to realize this ambition. All we can do is to work in the general direction. In the meantime, I am strongly impressed with the need of trade union organization until all wage workers are fully organized. I would like to see the various trade unions aim to standardize the rates of pay of all workers. As a co-operator, I would espouse the cause of labor co-partner ship, undertaken under .trade union conditions. For some time past I have been doing all I can to foster the orderly marketing of farm produce by co-opera tive methods. Every effort should be made towards linking up and co-ordinating the activi ties of marketing and distributive so cieties for their mutual advantage. Some people seem to think there is a direct conflict of interest between them. It is a great mistake. Co-operative mar keting institutions (which are a form of producers' co-operation) and consumers' co-operation, can, by associated and fra ternal effort, effect a large saving in the transfer of merchandise from the pro ducer to the consumer. There is, however, sometimes an ap parent lack of sympathy between pro ducers' and consumers' co-operation. The reason probably is that the former has to depend upon the competitive trade to distribute its produce because consumers' co-operation is not yet suffi ciently developed to take care of any considerable portion of it. The officials of marketing societies often find it to their interest to cultivate the good will of the competitive trade interest as cus tomers, and they sometimes receive con siderable service from them in organiz ing and popularizing their institutions. Competitive businessmen appreciate that increased farm revenues accruing from co-operative marketing and agricultural co-operative production greatly augment their own profits as distributors—but do not forget that they naturally are opposed to any attempt to conserve the purchasing power thereof by the organi zation of consumers' societies. It has been suggested that objection is raised by some to consumers' co-opera tion because "it makes petty employers and capitalists of the workers them selves, setting them up as 'bosses' over employees in co-operative stores and factories." But is it not clear that final voting authority is vested in all the con sumers as consumers and users of good services and not as capitalists and mere owners of the industry. The financial 234 CO-OPERATION advantage accruing to a member of a consumers' society, if he is fully loyal to it, is small as a capitalist, compared with what he realizes as a consumer. If, and when, the time arrives each con sumer can adequately finance his society by his trading operation there will be no need to recognize him as a capitalist at all by the payment of interest on his investment. The authority that or ganized consumers exercise as employers will have to be vested somewhere, no matter how industry is conducted. Workers must recognize the foreman or managers placed over them by demo cratic authority. The real objection to the capitalist is not because he possesses capital, but that he uses it to direct and control the energies of his fellow citizens, and to despoil them of the greater part of the produce of their labors. The obvious duty of all who visualize with satisfac tion the realization of a co-operative commonwealth is not to quarrel and obstruct each other as to the manner in which co-operative principles should be applied, but to lend a hand, or a good word, for any co-operative organization calculated to substitute the motive of social service for private profit, leaving the co-ordination of the whole economic structure to ever-growing experience. The capitalist "system," so-called, was not built up according to specifica tions, but it developed as the result of practical experience, and as an expres sion of human trends. The co-operative commonwealth will no doubt grow out of the present system in a similar manner. The rate of prog ress is to be determined by the quality of the social intelligence, interest, and energy of the people. News and Comment CENTRAL COMMITTEE OF I. C. A. MEETS The Central Committee of the Inter national Co-operative Alliance is com posed of 42 members representing the various national unions and wholesales affiliated with that body. At the annual meeting held in Hamburg October 12 to 16, 41 of these members answered the roll call. They came from 20 different countries. A representative from the co-opera tive movement of Spain was seated on the Committee for the first time; and the Union of People's Banks of Sofia was admitted to membership in the I. C. A. The proofs for the International Co operative Press Directory were inspected and approved. Some considerable dis cussion took place over the question of seating of additional delegates from the Union of Soviet Socialist Republics, but the Committee finally voted to uphold the decision of the Executive, which was to the effect that the IT. S. S. R. should be treated as one country and its delega tion given representation accordingly. Plans for the International Congress to be held next summer at Stockholm were presented and approved, also plans for the International Summer School and special Conferences on International Co-operative Banking and Insurance. A detailed and lengthy report of persecu tion of co-operatives in Italy by the Mussolini government was presented and adopted. A resolution submitted by the Russian members of the Committee ask ing for formal support to the British miners was tabled with the understand ing that such a request to receive due and careful consideration should be pre sented by the co-operators from Great Britain, where the strike is taking place. The next meeting of the Committee is called for next April in Brussels. GREAT MINE DISASTER HITS CO-OPERATIVE The recent mine disaster in Ishpeming, Michigan (only one of several in that territory during the past few months) was a distinct blow to the Ishpemine1 Consumers' Co-operative Store, which lost two of its directors and several of its members and customers. Most recent reports indicate that 61 miners were killed. How seriously this affects the co-operative is still a debatable question. But there is no debate at all about the CO-OPERATION 235 seriousness of the situation which con fronts the community as a whole and the widows and orphans of these people in particular. One verbal report which came to The League would seem to indi cate that the majority if not all of the miners were co-operators. The Executive Staff of The League therefore urges strongly in a letter sent out to its member societies, that aid be sent at once to the widows and orphans of these co-operators. Mr. Jalmar Nukala, whose address is c/o Ishpeming Consumers' Co-operative Store, Ish peming, Mich., is General Treasurer to receive all relief funds from co-operative sources. Checks and money orders should be made out either to him or to the Co-operative Store and mailed to this address. A Short Survey of the Wheat Industry By WEENER E. REGLI Accountant for The Co-operative League The production of wheat and its manufacture into flour is to-day one of the greatest industries of the world. There are many varieties of this cereal. Some, being winter annuals, are sown in the fall and harvested in the early summer; others are sown in the spring and harvested usually 15 to 30 days later than the winter varieties. Spring wheat is sown in those regions where the winters are dry and cold, with little or no snow. Because of the varying sea sons at which wheat is sown, because of the varying altitudes and latitudes of the wheat belt, and also because of the alternation of seasons in the northern and southern hemispheres, wheat har vest is in progress in some part of the world each month of the year. Europe consumes 60 per cent of the world's wheat supply—10 per cent more than she can produce. The United States produces about 20 per cent of the world's wheat, of which exports vary ing from one-quarter to one-eighth are made. In 1925 the acreage harvested in the United States was 52,000,000; the production from this acreage was 669,365,000 bushels. This survey is divided into three parts relating to the geography, agriculture, and the manufacturing end of this in dustry. This is followed by a short study of the facts relating to the flour itself. GEOGRAPHY Climate.—"Wheat is produced in mod erately dry, temperate climates. At present it is not grown in warm, humid regions, principally because of the wheat diseases which thrive under such climatic conditions. Of these diseases, rust, smut and bunt fungi are by far the most com mon and most destructive. All of these diseases are epidemic and are caused by parasitic organisms which prey on the plant tissue. Nor is it extensively culti vated in regions having a growing season of less than 90 days or an annual rain fall of less than nine inches. The most important wheat regions have an aver age precipitation of less than 30 inches. The seasonal distribution of rainfall is as important as the yearly amount. A cool, moderately moist growing season, emerging gradually into a warm, bright and preferably dry harvest period, favors the formation of a hard wheat high in nitrogen. Coastal regions hav ing the Mediterranean type of climate and the interior of continents are the best locations for wheat producing. Distribution.—The world map shows eight important and distinct wheat regions: 1. The plains of southern Russia and the Danube Valley; 2. The countries bordering the Medi terranean ; 3. Northwestern Europe; 4. The central plains of the United States and Canada; 236 CO-OPERATION 5. The Columbia basin of the United States; 6. Northwestern India; 7. Argentina; 8. Southern Australia. The wonderful agricultural region ex tending from the international line on the north to the 37th parallel on the south, and from the Atlantic Ocean to the 100th meridian, which comprises 26 states, produces 76 per cent of the Amer ican wheat crop. This area embraces 70 per cent of the total improved farm acreage of the country; it is the great est cereal producing region in the world. In the northwestern section wheat grow ing is done on a gigantic scale; the best illustration of the great wheat farms, or "bonanza" wheat farms as they are called, are found along the Red River where it flows between North Dakota and Minnesota. AGRICULTURE The wheat grown in the United States is of two distinct kinds. One is the large-kernel winter wheat of the Eastern States; the other is the hard spring wheat. The "blue stem" and the "Scotch fife" are native varieties of the latter kind grown in Minnesota and the two Dakotas; for flour making this wheat is considered the best in the world. Ploughing.—The first step, after the burning of the old straw of the previous year—a real labor in itself because of its enormous bulk—is the ploughing. This begins in October and continues for a month or for six weeks. About forty men are employed upon a farm of 5,000 acres during the ploughing season. The wheat region in the United States is a country of heavy snows and severe dry cold, but when March comes the snows begin to melt and by April the ploughed land is dry enough for the harrow. One man can harrow from sixty to seventy- three acres a day. Seeding.—The seeding follows imme diately upon the harrowing. When the weather is good the seeding upon a 5,000 acre farm will be done in twenty or twenty-five days. It is usual to seed five pecks of wheat to the acre. The wheat seed used is carefully selected and thoroughly cleansed of foreign seeds. The cost of the seed and the labor, including the harrowing and the planting, varies with each season. When the planting is finished the labor ers of this branch of the work are dis charged. The men therefore who do the most important work are temporary laborers. Harvest.—The harvest laborers begin to arrive from the south about the mid dle of July because by the end of this month the harvest is at its height. A farm of: 5,000 acres will use from sev enty-five to a hundred extra men. The wheat is cut and stood upright in shocks. The grain cures very rapidly in the dry climate. The shocks are then hauled directly to the thresher and fed into the feeder. One thresher is needed for every 2,500 acres. The time element is very important in threshing, since the rainfall might spoil in one night grain amounting to the cost of several ma chines. The grain falls from the spout of the thresher into a box wagon which carries it to the elevator. The flour that passes through the great mills from the time that the sheaves of wheat are tumbled into the wagon until the flour reaches the hands of the cook is untouched. When the box wagons reach the elevators the loosing of a bolt dumps the grain into the bin, where it remains until the pulling of a lever lets it into the cars. Every pound of it is weighed and accounted for and entered upon the books so as to show the exact product of each division of the farm. The farmer studies these figures care fully to see what his land is doing and makes his plans for the next year so as to rest or to strengthen those sections which are failing. Marketing.—The office of every bo nanza farmer is connected by wire with the markets at Minneapolis, Chicago and Buffalo. Quotations arrive hourly in the selling season. The farmer on the upper waters of the Red River is kept fully informed as to the drought in In dia, the hot wind in the Argentine and the floods of the Danube. The world's great wheat fields lie almost within his sight so well does he know the conditions that prevail in them. CO-OPERATION 237 Inspecting and Grading.—The great wheat growing states like Minnesota have established systems of inspecting and grading wheat under state super vision. At present there are eighteen grades recognized in Minnesota: 1. Hard spring wheat, sound, bright and well cleansed, composed mainly of hard "Scotch fife" weighing not less than fifty-eight pounds to the measured bushel. 2. Northern spring wheat, sound and well cleansed, composed of the hard and soft varieties of spring wheat. 3. Northern , etc., down to the eighteenth grade, which is of almost no grade value. Transportation.—Most of this wheat goes by way of the lakes through the Sault Sainte Marie Canal to Buffalo, where it is shipped to New York, Phila delphia and Baltimore. The railroads of the northwest have a monopoly of the business of hauling wheat, with the re sult that it costs as much to ship a bushel from Dakota to Duluth (Lake Superior) as it does to ship from Duluth to Liverpool. PROCESSES OF MILLING History of Grinding.—The ancestor of the millstone was apparently a round stone about the size of a man's fist with which grain or nuts were pounded and crushed into a rude meal. The saddle- stone is the connecting link between the primitive pounder or muller and the quern, which was itself the direct an cestor of the millstone still used to some extent in the manufacturing of flour. The saddle-stone consisted of a stone with a more or less concave face on which the grain was spread—in and along this hollow surface it was rubbed and ground into coarse meal. The quern, the first complete milling ma chine, originated in Italy and is proba bly not older than the second century B.C. Querns are still used in most primitive countries. The rotary motion of millstones became the essential prin ciple of the trituration of grain and exists to-day in the rolls of the roller mill. The waterwheel is credited to the Romans, but long after millstones had been harnessed to water power slave labor was still largely employed as a motive force. Steam power was first used in a British flour mill towards the close of the eighteenth century. The introduction of the blast and exhaust to keep the stones cool was a great step in advance. Most flour consumed to-day is ground in roller mills; that is, mills in which the wheat is broken and floured by means of rollers, some grooved in vary ing degrees of fineness, some smooth. Their work is preceded and supple mented by a wide range of other ma chinery. Modern roller mills are com pletely automatic. It will be convenient here to explain the meaning of three terms constantly used by millers, namely, semolina, mid dlings, and dust. These three products of the roller mills are practically iden tical in composition but they represent different stages in the process of reduc ing the endosperm of the wheat flour (a wheat berry is covered by several lay ers of skin under which is the floury kernel called endosperm). This the break or grooved rolls tend to tear and break up. The largest of these more or less cubical particles are known as semolina, whilst the medium, sized are called middlings and the smallest sized termed dust. It must be remembered that the wheat as delivered to the mill is dusty and mixed with sand and even more objec tionable refuse, and that it also contains many light grains and seeds of other plants. It is therefore not sufficient for the miller to be able to reduce the grain to flour under the most approved con ditions. He must also have at command the means of freeing it from foreign substances and of further conditioning it, should it be damp or over-dry and harsh. Dry Cleaning.—Wheat cleaning has been well called the foundation of all good milling. In the screen house, as the wheat cleaning department of the mill is termed, will be found an array of machinery almost equal in range and variety to that in the mill itself. The wheat is first treated by a warehouse separator. This apparatus works by means of sieves and air currents. It serves to free dirty wheat of such im purities as lumps of earth, stones, straws, sand, and other seeds. Then the 238 CO-OPERATION sorting cylinders are used. These are provided with indents of such a shape and size as to catch seeds which are smaller than wheat and to reject those - which are longer. Scourers are ma chines whose function it is to free the wheat from adherent impurities. They are followed by brushing machines, whose function it is to polish the wheat and remove further adhering impurities. To remove such metallic fragments as nails, pieces of wire, etc., magnets are used. Washing.—Certain of the wheats are washed to free them from extraneous matter such as adherent earth and sim ilar impurities which could not be re moved by dry cleaning. The washer is followed by a whizzer, an apparatus which frees the berry, by purely mechan ical means, from superfluous moisture. However, there still remains a certain amount of water which has penetrated the integuments more deeply, and to condition the berry it is treated by combinations of hot and cold air. Boiling.—After being cleaned the wheat berry is split and broken up into increasingly fine pieces by the rollers. Scalpers are used for sorting out the products of the rollers for further treat ment. Purifiers are used to get away as much impure matter as possible from semolina and middlings so that these products may be pure for reduction to dust and then flour by the smooth rollers. In the next issue we shall follow this survey with the story of the finished product of the wheat—the flour itself; the grades which are established; the various brands. '' Brand'' is merely the term for any standard blend that can be maintained by the skilled miller, be cause he has a thorough understanding of the elements of the flours which go to make his particular brand and the knowledge of how to blend them. Of course, this knowledge must be paid for, but the big cost is entailed in keeping the public informed of the virtues of his particular brand; this cost, of course, is defrayed by the consumer. So the question arises, "Is it possible to buy unbranded flour as satisfactory as those advertised and thus avoid paying the cost of extensive advertising?" We feel that this is possible, and in the next issue we shall discuss the question. BIBLIOGKAPHY Geography of the World's Agriculture. V. C. Finch and O. E. Baker Encyclopaedia Britannica (llth Edition) (To be continued) The Correspondence File MORE ABOUT TURNOVER Editor, Co-operation ; In the October number of CO-OPERATION, Mr. Niemela attempts to reply to The League's circular advocating rapid turnover of mer chandise in co-operative stores and to show that there are times when it is more profitable to take advantage of quantity discounts even at the expense of turnover. There is no phase of business economics that is so little understood among our store managers as that of turnover and none regard ing which they are so greatly in need of a clear and thorough understanding. It would appear from his letter that Mr. Niemela is no excep tion to this rule. The trouble with the reason ing that he presents is that it stops too soon and had it been carried to its logical con clusion it would have defeated his own argument. He stopped exactly where most managers stop and just where the people who employ the high-power super-salesmen to un load quantity purchases on the retailer want them to stop. While Mr. Niemela agrees that the case he cites is an extreme one, it will serve admirably for the purpose of this discussion. On a purchase of $150 worth of soap, which was 25 cases at $6 per case, he received an extra discount of 10 per cent or a total saving of $15. We will suppose that he got an extra cash discount of 2 per cent which would amount to $2.70. Suppose also that he made a net profit of 4 per cent on the original cost of the soap which would make a total $6 on the 25 cases. Then the total net income from the transaction, figuring no interest off, would amount to $23.70. Let us now see what the potential possi bilities of this $150 would have been under a weekly turnover for the twenty-five weeks CO-OPERATION 239 period. If $6 of this $160 had been invested in one case of soap and had been turned over •each week for the twenty-five weeks at 4 per <;ent net profit it would have earned $6 in profit in that time. Had the 2 per cent cash discount been taken each week this would have amounted to another $3 making a total earning of $9 on the original $6 investment. This would have left enough of the original $150 to have invested $6 in 24 other items that could have been turned at 4 per cent net profit each week of the twenty-five weeks period also and each of them making a net profit of $6 for the period would have made a total of $144 and if the 2 per cent cash discount had been taken on each of these transactions an addi tional earning of $72 would have been made or a grand total of $216 which added to the $9 made on the soap would have resulted in a total net earning of $225 on the $150 capital for the twenty-five weeks period. Let us now suppose that Mr. Niemela turned the first case of this soap in one week and that as soon as he had his money out of it he reinvested it in some commodity that would keep turning each week. Then suppose he had done the same when he sold the next case of soap which would have been two weeks after he bought it, the money having been tied up in this case two weeks. When he sells the third case three weeks after he bought it he "The Co-operative Pyramid Builder" Official Organ of Co-operative Central Exchange is a snappy, live co-operative magazine. Get in line! Subscribe NOW Subscription price 50c a year. CO-OPERATIVE CENTRAL-EXCHANGE Superior, Wis. reinvests this money in the same way and so on until the entire 35 cases are sold. In that case his capital would have been dormant for an average of twelve and one-half weeks or half of the amount of the capital involved would have been earning nothing but the $15 quantity discount for the entire twenty-five weeks period. We have seen that with the $150 capital working every week we had a net earning of $225 then by the law of averages when the capital has been idle half of the time the other half that was working has earned only $112.50. In other words, in order to take advantage of the quantity discount of $15, potential earnings of $112.i50 have been sacrificed. This is of course a purely theoretical case but it illustrates perfectly the difference between rapid turnover and quantity buying with slow turnover. This explains why some of the larger chain store organizations make the enormous profits they do on the rapid turnover that they get, some of them turning their invested capital as much as 60 times a year. It also explains why the wholesaler, whose place in the scheme of distribution is to carry the surplus stocks and supply the retail trade as it needs it, move heaven and earth to shirk their natural function and induce the retailer to carry the surplus, and quantity discounts is the favorite method employed. A. W. WAEINNEB, Educational Director, Central States Co-operative League. Bloomington, 111. The Canadian Co-operator Brantford, Ontario, Canada The organ Of the Canadian Co-onera- tive Movement, owned by and con ducted under the auspices of The Co-operative Union of Canada. Published monthly 75c per annum CO-OPERATION, 167 West 12th Street, New York. Please send CO-OPERATION for one year to Name................................... Address.............................. $1,00 a year. 240 CO-OPERATION .1,1 1 ; • PUBLICATIONS —OF — THE CO-OPERATIVE LEAGUE HISTORICAL PerCopy PerlOO 3. Story of Co-operation .............$ .10 $6.00 7. British Co-operative Movement..... .10 6.00 38. Consumers' Co-operative Movement in U. S., 1926................. .10 6.00 39. Consumers' Co-operative Societies in N. Y. State (Published by Con sumers' League ................ .10 59. Co-operative Movement in Europe.. .05 4.00 64. Progress of Co-operation in United States. ..................... .05 4.00 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 Denned... .10 9. How to Start a Co-operative Whole sale . ....................... .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-opera tive League ................... .10 29. Credit Union Primer (By Ham and Robinson). .................. .50 43. Co-operative Housing ............. .10 50. A B C of Co-operative Housing.... .10 51. Model Lease for Co-operative Apart ment House ................... .10 MISCELLANEOUS 16. Model Co-op State Law. ........... .10 46. Producers' Co-operative Industries. . .10 11. Control of Industry by the People through the Co-operative Movement 12. Credit Union and Co-operative Store 33. Credit Union and Co-operative Bank 13. The Place of Co-operation Among Other Movements .............. .25 34. Co-operative Movement (Yiddish).. .02 30. "When the Whistle Blew" (Story, by Bruce Calvert) .............. .06 41. Social Aspects of Farmers' Co-opera tive Marketing (By Benson Y. Landis). .................... .25 42. Co-op Homes for Europe's Homeless .10 53. Real First Aid for the Farmers.... 55. A Better World to Live In... ....... 57. How a Consumers' Co-operative Dif fers from Ordinary Business. .... 60. The " Moral Equivalent " of Jazz. . . 62. Buttons (League Emblem in 3 colors) 34 inch diameter ........ 63. Sign or Transparency of League Em blem. Green and gold, 8 in. diam. . .10 .05 .05 1.75 1.25 .05 .05 .02 .02 .60 3.00 .25 15.00 ONE-PAGE LEAFLETS (One Cent each; 50 Cents per 100; $2.50 per 500; $4.00 per 1,000.) (1) Principles and Aims of The Co-operative League; (18) 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- opera tel; (28) Do You Know About Co-operation. in Europe?; (40) Have You a Committee on Education and Recreation?; (44) What Is the Co-operative Move ment?; (45) Schools and Stores; (47) A Man's Right to a Job; (48) Tips to Co-operators; (49) The Way Out; (61) Co-operation Brings Disarmament. MONTHLY PUBLICATIONS CO-OPERATION—(In bundle lots, $7.50 per hun dred). Subscription, per year............. .$1.00 HOME CO-OPERATOR, 4 pages...... .$1.00 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 Move ment. They may be ordered through The League: Bergengren, Roy F.: Co-operative Banking, A Credit Union Book ..................... $3.00 Blanc, Elsie T.: Co-operative Movement in Russia.............................. 2.50 Brightwill, L. R.: Animal "Co-op" Book—For Children............................ .15 Faber, Harald: Co-operation in Danish Agricul ture, 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 American edition and notes, 1922. Cloth, $2.00; paper bound ..................... .90 Hall, Prof. Fred: Handbook for Members of Co operative Committees ................... 2.00 Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Paper bound........ .60 Holyoake: Rochdale Pioneers ................ 1.00 Howe, Fred C.: Denmark, a Co-operative Com monwealth, 1921 ....................... 2.00 Jessness, O. B.: Co-operative Marketing of Farm Products ......................... 2.50 Madams, J. P.: The Story Retold............ .50 Mears and Tobriner: Principles and Practices of Co-operative Marketing................ 3.20 Nicholson, Isa: Our Story................... .25 Owen, Robert: Autobiography .............. .50 Potter, B-: Co-operative Movement in Great Britain.............................. 1.00 Redfern, Percy: The Story of the C. W. S..... 2.00 Redfern, Percy: The Consumers' Place in So ciety, 1920 ............................. 1.00 Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918 ........................ 1.00 Smith-Gordon and O'Brien: Co-operation in Denmark . . . . . . ..................... 1.00 Smith-Gordon and O'Brien: Co-operation in Many Lands, 1920 ..................... 1.50 Stolinsky. A.: The Co-operative Movement. (In Yiddish). ............................ 1.00 Warba'sse, J. P.: Co-operative Democracy, 1926. 1.50 Webb. B. and S.: The Consumers' Co-operative Movement, 1921. Board, $2.00; cloth..... 5.00 Webb, Catherine: Industrial Co-operation, 1917. 1.50 Woolf, Leonard: Co-operation and the Future of Industry............................ 1.00 Woolf, L.: Socialism and ICo-operation........ 1.50 Co-operation in Great Britain and Ireland, paper .25 CO-OPERATION, Bound Volumes, 1915 to 1925 inclusive, each ......................... 1.25 Transactions of Second American Co-operative Congress, 1920 ......................... 1.00 Transactions of Third American Co-operative Congress, 1922 ......................... 1.00 Transactions of Fourth American Co-operative Congress, 1924 ......................... 1.00 Northern States Year Book, 1926. Paper..... .25 The People's Year Book, 1926. Cloth, $1.00; paper bound ........................... .60 (.Ten cents postage should be added for books which cast more than $2.00, and five cents for the smaller books.')