CONSUMERS' The source of this uncorrected OCR text may be viewed as a digital facsimile at: http://fax.libs.uga.edu/ COOPERATION OFFICIAL ORGAN Of The Consumers' Cooperative Movement in the U. S, A. VOLUME XXV ] anuary—December 1939 Published by The Cooperative League of U. S. A. 167 West 12th Street, New York City 181 111 INDEX ONSUMERS' COOPERATION PAGE Accountants Stress Uniform Reports at National Meeting ................................................ 107 Adult Education, Voluntary ........................................................................................................................ 187 Advisory Council Progress in Ohio ...................................................................................................... 121 Agster, H. S. ................................................................. 184 Aiken, George D. .................................................................................................^....i...................................... Ill Alanne, V. S. ............................................................................................................................................... 95 Alm, Ulla .................................................,................................................_ 126 Amalgamated Cooperative Apartments ............................................................................................. 3 2 American Federation of Labor .........................................................................................................13, 173 American Folk Dances, a review ............................................................................................................ 190 American Folk Songs, Three, a review ................................................................................................ 189 Another Bust Ahead, Prepare for It ...................................................................................................... 181 Austrian Central Cooperative Bank, The .......................................................................................... 21 B Bakken, Henry A. ................................................................................................................................................ 136 Barren, George G. ............................................................................................................................................ 149 Beard, Charles A. ................................................................................................................................................ 84 Benjamin, R. N. .....................................................................^................................................................ 149, 184 Bergengren, Roy F. ............................................................................................................................................. 167 Bibliography on Consumer Education, a review ........................................................................... Ill Borah, Senator ..................................................................................................................................................... 82 Bowen, E. R. ............................................................................................. 6, 54, 66, 82, 99, 147, 181 Bricker, Gov. John W. .................................................................................................................................... 173 Brighton's Cooperative Advance, a review ....................................................................................... 32 British Federation of Cooperative Youth .......................................................................................... 178 British Luma Lamp Society ........................................................................................................................... 158 Broadcasts in 1938, National ..................................................................................................................... 15 Brown, W. Henry ................................................................................................................................................ 32 Burley, Orin E. ...................................................................................................................................................... 175 California, Associated Cooperatives of .................................................................................... 30, 173 California Institute ............................................................................................................................................. 125 Calkins, Gilman ................................................................................................................................................... 93 Campbell, Wallace J. .................................................................................................................. 12, 42, 169 Careers in Consumer Cooperation, a review .................................................................................... 95 Carpenter, Dr. J. Henry ........................................................................................................................ 11, 175 Central Cooperative Wholesale .......................................... 13, 29, 79, 124, 159, 162, 171 Central Conference of American Rabbis .......................................................................................... 1 ""^ Central States Cooperative League ......................................................................................................... Chicago Cooperative Union ....................:.......................................................................................... 32, Chronology, National Cooperative ..................................................................................... /~1 1 T " _.. - 1 ~" " ~ ——' Church and Cooperatives, Committee 125 79 172 49 on the ...................................................... {4 INDEX PAGE Circle Pines Center .................................................................................................................................... 15, 72 Coady, Dr. M. M. ........................................................................................................................ 17, 132, 174 Cog or Collaborator, a review ..................................................................................................................... 126 Cole, Margaret ...................................................................................................................................................... 110 Compere, Ralph and Moirée ........................................................................................................................ 164 Concerning the Choices Before Us, a review ................................................................................. Ill Condensed Cooperative Balance Sheet Comparisons ............................................................... 186 Conference on Organized Labor and Consumer Cooperation ................................. 30, 91 Congregational Council for Social Action ....................................................................................... 30 Congress of Industrial Organizations ....................................................................................... 13, 174 Consumer Awakens, The, a review ...................................................................................................... 127 Consumer Consumed or Pure Applesauce, The, a puppet play .......................................... 60 Consumer Education journal, a review ............................................................................................. 190 Consumers Cooperative Association .............................. 12, 13, 30, 79, 81, 162, 170, 173 Consumers' Cooperatives Associated ................................................................................................... 13 Consumers Cooperatives as a Distributive Agency, a review ............................................. 175 Consumers Cooperative Refineries, Ltd. .......................................................................................... 170 Cooley, George L. ................................................................................................................................................ 53 Cooley, Oscar ......................................................................................................................................................... 133 Cooper, Madge ...................................................................................................................................................... 189 Co-op Center, The ........................................................................................................................ 79, 125, 142 Cooperation, a Way of Peace ..................................................................................................................... 154 Cooperation as a Way oj Peace, a review .......................................................................................... 64 Cooperation in the Land of the Midnight Sun .............................................................................. 136 Cooperation Moves South ........................................................................................................................... 90 Cooperative Book Club ........................................................................................................................ 13, 31 Cooperative Buying is Big Business ...................................................................................................... 100 Cooperative Distributors ............................................................................................................ 13, 47, 143 Cooperative Education Association .................................................................................... 13, 30, 173 Cooperative Highlights ................................................................................................................................. 162 Cooperative Life Insurance Company of America ............................................................ 13, 29 Cooperative Primer, The, a review ......................................................................................................... 191 Cooperative Recreation Service ............................................................................................................... 189 Cooperative Refinery ........................................................................................................................... 125, 170 Cooperative Society for Recreational Education Conference ............................................. 172 Cooperatives in America, a review ......................................................................................................... 48 Cooperators of America! Take a Positive Stand for Peace! ................................................ 147 Cooperators Must Help Each Other Reach the Right Conclusions .............................. 65 Co-ops Move Into Production, The ...................................................................................................... 169 Co-ops Can't Profiteer—Sales Boom ................................................................................................... 159 Cort, E.G. ............,..................................................................^ 150 Country Gentleman ................................................................................................................................ 17, 97 Cowden, Howard A. .......................................................................................................................................... 149 Cowling, Ellis ......................................................................................................................................................... 48 Credit Union National Association ...................................................................................................... 52 Cross, Dr. Hartley ................................................................................................................................................ 94 D Day With Kagawa, A, review of film ................................................................................................... 127 Decade of a Dying Order .............................................................................................................................. 161 1 r T INDEX INDEX PAGE Defending Democracy .................................................................................................................................... 82 Democratic Sweden, a review ..................................................................................................................... 110 Douthit, Davis .................................................................................................................................................... 85 Drama in Peace, There's ................................................................................................................................ 160 Eastern Cooperative League ....................................................................,......'.............................. 125, 173 Eastern Cooperative Wholesale .................................... 12, 29, 47, 81, 93, 117, 125, 159 ECW's First Ten Years ................................................................................................................................. 117 Economy, A Cooperative ................................................................................................................................. 99 Education Conference, Free Trade in Ideas at Milltown ...................................................... 105 Education Program, National ..................................................................................................................... 2 Education Through Recreation, a review .......................................................................................... 94 Educational Activities ....................................................................................................................................... 14 Edwards, Ellen .................................................................................................................. 45, 108, 128, 141 Edwards, Gladys Talbott .............................................................................................................................. 127 Epitome of the Cooperative Movement ............................................................................................. 114 Equity Cooperative Creameries .................................................................................................................. 29 European Visitors ................................................................................................................................................ 14 Ezekial, Mordecai ................................................................................................................................................ 127 Factories in the Field, a review ............................................................................................................... 191 Failor, Clarence W. .............................................................................................................................. 95 Farm Bureau Mutual Auto Insurance Company ....................................... 13, 79, 125, 142 Farm Cooperatives Show Huge Gains ................................................................................................ 76 Farmers Union Cooperative Hospital ................................................................................................... 104 Fascism, Regarding ............................................................................................................................................ 73 Films, Cooperative .................................................................................................................................... 42, 128 Financial Statements, Cooperative Condensed .............................................................................. 54 Finland, A National Success Story ......................................................................................................... 183 Finland, Cooperation in ................................................................................................................................. 132 Fosdick, Dr. Harry Emerson ..................................................................................................................... 35 Fowler, Bertram B. ............................................................................................................................................. 34 Freedom of the Individual ........................................................................................................................... 4 Good Will to Men Means Plenty to All ............................................................................................. 177 Grange Cooperative Wholesale ............................................................................................................... 13 Green, Perry L. ............................................................................................................................................. 3, 150 Greenbelt Cooperative Health Association ....................................................................................... 104 Grossman, Otto ...................................................................................................................................................... 21 Group Health Association of New York .......................................................................................... 102 Group Health Association of Washington, D. C. ..................................................................... 103 Group Health Plans .......................................................................................................................................... 125 H PAGE Harvard Bureau of Business Research Report .............................................................................. 69 Hedberg, Anders ................................................................................................................................................... 159 Highlights of 1938, Cooperative ............................................................................................................ 12 Highlights, National Cooperative ......................................................................................................... 50 Hjalmarsson, H. ................................................................................................................................................... 36 House Without a Landlord, review of film .................................................................................... 128 Housing in Sweden, Cooperative, a review .......................................... .... . 126 Hull, I. H. ............................................................................................................................................. 180 Indiana Farm Bureau Cooperative Association ............................................................... 124, 170 Industrial Arts Cooperative ........................................................................................................................ 141 Inside the Cooperative Family ............................................................. ..... ..... ... 74 i y ... .... .... .... .... ...... / M. International Cooperative Alliance, Appeal for Funds ............................................................ 31 It Won't Happen Here, a review ............................................................................................................ 189 J Jacks, L. P. .............................................................................;............................._................„................................ 94 Jews, Central Conference of American Rabbis ........................................................................... 125 Jobs for All, a review.......................................................................................................................................... 127 Johansson, Albin ................................................................................................................................................... 159 Johnson, Josephine ............................................................................................................................................. 60 Jorgensen, Chris ................................................................................................................................................... 91 K Kagawa, Toyohiko ............................................................................................................................................. 130 Kallen, Dr. Horace M. ....................................................................................................................... 34, 39 Kapnick, W. W. ................................................^ 189 Katt, Herbert ......................................................................................................................................................... 92 Knight, Harold V. ............................................................................................................................................. 127 Labor and Cooperatives ........................................................................... 13, 36, 46, 91, 173, 174 Labor and Cooperative Leaders Meet at Akron ........................................................................ 91 Labor Conditions of Cooperatives vs. Private Employees in Sweden ........................ 36 Laski, Harold ......................................................................................................................................................... 116 Laval University ................................................................................................................................................... 31 Law, Cooperatives and The ........................................................................................................................ 66 Law Makes Me Pay More But My Cooperative Gives It Back, The ........................... 179 League of Campus Co-ops Takes Permanent Form .................................................................. 123 Lehtin, Laurie L. ................................................................................................................................................ 105 Legislative Program .................................................................................... ...... .... ... . 2 O O .... ...................... »j Lewis, John L. ..................................................................................................................................................... 2 Ligutti, Father Luigi ........................................................................................................................... 130, 174 INDEX INDEX PAGE Liimatainen, William ....................................................................................................................................... 150 Lincoln, Murray D. ............................................................................................................ 18, 91, 93, 149 Lord Helps Those Who Help Each Other, a review of film ............................................. 45 Lorraine Cooperative Union of Nancy, France ........................................................................... 163 Lyon, B. W. ....................................................................... Ill M Maintaining Democracy in Siveden, a review ..........................J.................................................. 143 Mann, George C. ................................................................................................................................................ Ill Masters of Their Otm Destiny, a review .......................................................................................... 174 McWilliams, Carey .......................;..................................................................................................................... 191 Medicine, Cooperative ............................................................................................................... 14, 102, 125 Metzger, T. Warren .......................................................................................................................................... 184 Midland Cooperative Wholesale .......................................... 12, 29, 79, 81, 85, 124, 143 Midland Cooperative Wholesale Year Book, a review ......................................................... 143 Midland Goes From Gasoline to Groceries ................................................................................. 85 Monthly Survey of Business, A. F. of L. .......................................................................................... 24 Mosaic Windows, a review ........................................................................................................................... 190 Morrison, Dr. Charles Clayton ............................................................................................................... 83 Movies for Cooperative Education ......................................................................................................... 42 Murphy, Ray ......................................................................................................................................................... 190 Myers, James ................................................................................................................................................ 91, 149 Myrdal, Mrs. Alva .....................................................!................................_..................................................... 187 Myrdal, Gunnar ................................................................................................................................................... 143. N National Association of Manufacturers ............................................................................................. 19 National Consumers Cooperative Organization, A .................................................................. 6 National Cooperatives ...................................................................................................... 12, 29, 53, 124 National Cooperative Movement, A ...................................................................................................... 3 National Education Association ............................................................................................................... 14 National Farm Institute ................................................................................................................................. 35 National Recognition ...................................................................................................................................... 14 National Resources Committee ................................................................................................... 177, 191 Need and Method of Teaching Consumers Cooperation in Secondary Schools 27 Neutrality, Cooperative ................................................................................................................................. 146 New Cooperative Publications .................................................................................................................. New History of the CWS, a review ...................................................................................................... Norris Bill S. 2605 ................................................................................................................................. 131, North Dakota State Division of Cooperatives .............................................................................. 79 Northern California Cooperative Council .............................................................................. 13, 173 Northern States Cooperative Youth League .................................................................................... 172 Northern States Women's Cooperative Guild .............................................................................. 31 Norway, Cooperation in ....................................................................................................................................136 o Odhe, Thorsten ................................................................,.._ 98 Ohio Farm Bureau Cooperative Association ............................................................ 13, 47, 171 15 95 163 PAGE Ohio Rural Leaders Plan Education for Democracy ............................................................... 93 Operating Results of Consumers Cooperation in the United States in 1937, a review 69 ..................................................................................................................... oy Organized Labor and Consumer Cooperation, Conferences .................................... 30, 91 Outline Primer of Cooperative Principles, a review ....................................................... Ill 13 Pacific Supply Cooperative ........................................................................................................................... Page, Walter Hines .............................................................................................................................. 157, 180 Peace and Cooperatives, Special Edition ..................................................................... 145 to 160 Peace, Directors Statements on ............................................................................................................... 147 Pennsylvania Consumers Go Into Production .............................................................................. 184 Pennsylvania Farm Bureau Cooperative Association .......................................... 13, 79, 171 Play Co-op, The .................................................................................................................._............................. 188 Plays, Peace, reviews of ................................................................................................................................. 160 Poole, Lee C. ............................................................................................................................................._ 123 Present Position of Adult Education in Sweden, a review ................................................... 110 Private Dealers and Cooperatives ............................................................................................................ 19 Prominent Americans Study Cooperatives in Scandinavia ................................................ 177 Publicity and Education Conference, Cooperative ............................................................ 47, 105 R Racine Consumers Cooperative Society ............................................................................................. .188 Rauschenbusch, Walter .................................................................................................................................... 98 Recent Co-op Articles ....................................................................................................................................... 16 Recreation, Cooperative ..................................................................... 47, 72, 108, 172, 188, 189 Recreation Materials, New ........................................................................................................................... 189 Recreation School, National Cooperative ..................................................................... 47, 72, 108 Redfern, Percy ..................................................................................................................................................... 95 Religious Attitude and the Consumer Economy, The ............................................................ 39 Reserves Before Dividends ........................................................................................................................... Resolutions, National Cooperatives ...................................................................................................... Reviews .......................................... 48, 64, 76, 94, 95, 110, 111, 126, 127, 143, 174, 190 Reynolds, Quentin .................................................................................................................................... 2, 129 Road to Ruin, The, a review ........................................................................................................................ 190 Roberts, Dr. Kingsley ....................................................................................................................................... 102 Rochdale Institute .................................................................................................................................... 15, 31 Roosevelt, Mrs. Eleanor ................................................................................................................................. 2 Rural and Industrial Conference ............................................................................................................ 142 Rural Credit Unions .......................................................................................................................................... 167 Rural Youth Councils of Ohio ................................................................................................... 172, 189 Russell, George W. (AE) ............................................................................................................... 115, 151 San Diego Beneficial Society ..................................................................................................................... 105 Saskatchewan, Province-wide Conference .......................................................................................... 125 Scandinavia Synthesizes Individual Liberty and Group Unity .......................................... 115 35 53 INDEX PAGE Should Cooperative Shares Be Made Liquid .................................................................................... 133 Siegler, Carlton John ....................................................................................................................................... 27 Silvey, Ted F. .....................................................................................................................................^^ 91 Smith, Charles ...................................................................................................................................^ 110 Smoots, Herbert W. .......................................................................................................................................... 31 Southern Conference on Cooperation ....................................................................................... 79, 90 Speaking From Vermont, a review ......................................................................................................... Ill Spiritual Conflict, The ................................................................................................................................... 151 Statistical Handbook of Farmers Cooperatives, a review ...................................................... 100 Statistics of Farmers Marketing and Purchasing Cooperatives, 193J-38 Marketing Season, a review ............................................................................................................... 76 St. Francis Xavier University ............................................................................................................ 30, 109 Stolpe, Herman ...................................................................................................................................................... 126 Structure of the American Economy, a review .............................................................................. 191 Student Cooperatives .............................................................................................................................. 15, 123 Survey of Cooperative Medicine Today, A .................................................................................... 102 Tanner, Vainno ...................................................................................................................................................... 179 Taylor, Perry ............................................................................................................................................................ 92 Ten Years of Cooperation: Eastern Cooperative Wholesale ............................................. 93 Tenancy in Iowa ................................................................................................................................................... 18 Thompson, Glenn W. .................................................................................................................................... 105 Tichenor, George .....L............................................................................................................... 93, 117, 189 To See Ourselves As Others See Us ...................................................................................................... 95 Tompkins, Father J. J. ........................................................................................................................... 98, 114 Tour, European ..........................:........................................................................................................................... 48 Tour, Nova Scotia ............................................................................................................ 15, 48, 109, 142 U United Cooperatives .......................................................................................................................................... 31 United States Bureau of Labor Statistics .......................................................................................... 12 Urban Cooperative Organization, First Steps in ........................................................................... 164 W Wage Earners Health Association ......................................................................................................... 107 Wallace, Henry A. .............................................................................................................................. 116, 142 War For Profit ...................................................................................................................................................... 180 War, What For? Profits! ........................................................................................................................... 157 Warbasse, James P. .............................................................................. 4, 32, 64, 73, 95, 149, 154 Warbington, L. F. ................................................................................................................................................ 121 What An Opportunity .................................................................................................................................... 116 Where the World is Being Re-made ................................................................................................... 109 Why Poverty—How Plenty ........................................................................................................................ 24 Wisconsin Cooperative Week .................................................................................................................. 30 Workmen's Mutual Fire Insurance Society ........................................................................ 13, 179 World Congress on Education for Democracy ........................................................................... 131 WPA Cooperative Project ........................................................................................................................... 31 À I " l A National Cooperative Movement Perry L. Green Freedom of the Individual in Democracy James P. Warbasse A National Consumers' Cooperative Organization E. R. Bowen Cooperative Highlights of 1938 Wallace J. Campbell JANUARY 1939 WE GREET THE NEW YEAR With New Offices: Opening executive offices at 608 South Dearborn Street, Chicago, in addition to our New York office, has delayed the January issue but promises to speed up and improve future issues. With a New Size and Format: To streamline your national magazine, to make it fit your pocket, to increase its economy we adopted a Digest size. With Important Articles: On Cooperative finance, education, leg islation, credit, administration and phi losophy promised for early publication. With the Possibility of: A larger (24 or 32 page) national magazine if you will help us boost the circulation. Send your subscription today— $1 a year — $2 for 27 months THE COOPERATIVE LEAGUE 167 West 12th Street, New York City CALENDAR OF COMING EVENTS Consumers Cooperative Association Co-op Employees Training School, North Kansas City, Missouri, January 8-15; January 15-22. Midland Cooperative Wholesale, Man agers' Institute, January 30-February 25. Rochdale Institute, Spring Session, includ- f ing Grocery Management Training Course, February 6, New York City. Ohio Farm Bureau Cooperative Associa tion, Annual Meeting, Columbus, Feb ruary 14, 45.' Cooperative and Labor Institute, Racine, Wisconsin, February 24, 25, 26. Midland Cooperative Wholesale Mid winter Conference, Milwaukee, Febru ary 23-25; Minneapolis, March 2-4. Board of Directors, Cooperative League of the U.S.A., Chicago, March 13. National Cooperatives, Annual Meeting, , Chicago, March 14, 15. THE COOPERATIVE LEAGUE 167 West 12th Street, New York City 608 South Dearborn, Chicago DIVISIONS: Auditing Bureau, 167 West 12 St., N. Y. C. Medical Bureau, 5 E. 57 St., N. Y. C. Design Service, 167 West 12 St., N. Y. C. Rochdale Institute, 167 West 12 St., N. Y. C. Clusa Insurance Service, 1^5 Kent Ave., Brooklyn, N. Y. AFFILIATED REGIONAL COOPERATIVES Name Central Cooperative Wholesale Consumers' Cooperatives Associated Consumers Cooperative Association Cooperative Book Club Cooperative Distributors Cooperative Recreation Service Cooperative Wholesale, Inc. Eastern Cooperative Wholesale Farm Bureau Cooperative Ass'n Address Superior, Wisconsin Amarillo, Texas N. Kansas City, Mo. 118E. 28 St., N.Y. 116E. 16 St., N.Y. Delaware, Ohio 2301 S. Millard, Chicago 135 Kent Ave., Bklyn Columbus, Ohio Publication Cooperative Builder The Producer-Consumer Cooperative Consumer Readers Observer Consumers Defender The Recreation Kit Farm Bureau Mutual Auto Insurance Co. Columbus, Ohio Lansing, Michigan St. Paul, Minn. Seattle, Washington Indianapolis, Ind. Minneapolis, Minn. Chicago, 111. Walla Walla, Wash. Harrisburg, Penn. Indianapolis, Ind. 227 E. 84th St., N. Y. E.C.L. Cooperator Ohio Farm Bureau News Ohio Farm Bureau News Michigan Farm News Farmers' Union Herald Grange Cooperative News Hoosier Farmer Midland Cooperator Penn. Co-op Review Farm Bureau Services Farmers' Union Central Exchange Grange Cooperative Wholesale Indiana Farm Bureau Coop. Association Midland Cooperative Wholesale National Cooperatives, Inc. Pacific Supply Cooperative Pennsylvania Farm Bureau Coop. Ass'n United Cooperatives, Inc. Workmen's Mutual Fire Ins. Society DISTRICT LEAGUES Central States Cooperative League 2301 South Millard Ave., Chicago, Illinois Eastern Cooperative League 135 Kent Ave., Brooklyn, N. Y. Northern States Cooperative League Sexton Building, Minneapolis, Minnesota California Co-op Education Ass'n 1676 E. 85 Street, Los Angeles, Cal. Northern California Co-op Council 372—40th Srreet, Oakland, Cal. National Cooperative Women's Guild Box 1000, Superior, Wisconsin CONSUMERS' COOPERAT/ OFFICIAL NATIONAL JOURNAL OF THE CONSUMERS' PEACE - PLENTY • DEMOCRACY Volume XXV. No. I JANUARY. 1939 Ten Cents Cooperative Movement Acts to Make 1939 a Happy New Year Happiness is more than wishful dreaming of a future cooperative society— it requires resolute action on all fronts. While local and regional cooperative development has been noteworthy during the past few years, we all have to admit that national development has not been equally successful. But the necessity of greater national action finally culminated in the closing months of 1938 in the Movement's taking what we believe history will appraise as a number of giant strides which 1939 and future years should more clearly demonstrate. After five years of thinking and discussion, The Cooperative League and National Cooperatives, or the national education and economic organizations of the'Movement as they are commonly described, have laid the groundwork for wider national action which should be of great significance. We start 1939 with inter locking directorates of regional representatives, with interlocking executive com mittees, with joint executive offices and with the financing of national education and legislation equitably based on a uniform 5-cents-per-member of commodity and insurance cooperatives. There is a feeling in the Movement that we are "going places" nationally. It is for the democratically elected directors and managements of our regional and national cooperative associations to make good on the high hopes of the members and build on the groundwork that has been laid a national move ment in the United States which will be strong enough to cope with and conquer the giants of monopoly which oppress us. An organ to spread the knowledge of the Consumers' Cooperative Movement, whereby the people, in voluntary association, purchase and produce for their own use the things they need. Published monthly by The Cooperative League of the U. S. A., 167 West 12th St., N. Y. City. E. R. Bowen, Editor, Wallace J. Campbell, Associate Editor. Contributing Editors: Editors of Cooperative Journals and Educational Directors of Regional Cooperative Associations. 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. Cooperators are the "Powerful Meek". Professor Walter Rautenstrauch of the industrial engineering department of Columbia University, who is a loyal and active cooperator, reports that he has discussed with some of his language authority friends among the faculty the question of a modern version of the Greek word "Praos," which has been previously interpreted as meaning "meek." They are in agreement that a correct modern trans lation might well be "Blessed are the cooperarors, for they shall Inherit the earth." * * * National Education and Legislative Programs to be Developed Democratically The preliminary plans which the directors of the Cooperative League and Na tional Cooperatives have adopted will begin to take more definite shape after the first of January 1939. The development of broader national educational and legislative programs will be based on democratic procedures in every way. Special meetings will be called of educational directors and legal representatives of regional coop eratives to consult with committees of the directors and with the staff, who together will formulate programs of action for these divisions of the movement to be carried out by the executives. There will be two rather distinct phases of these develop ments. The first will have to do with the unifying of the educational and legislative programs of the various regional associations so that each may take advantage of the best experience and judgment of all other groups. The second will be the development of broader education and legislative programs of a national character. Special divisions of the Cooperative League will be organized in due time to carry on these functions. Suggestions are in order and will be gratefully received from any who feel that they have worthwhile proposals to offer. * * * Some Thoughts Which We Should Turn Into Resolute Actions Eleanor Roosevelt says "The age of cooperation is here to stay." This will be true if we resolve to extend democratic cooperation into economics. * * * John L. Lewis says "If this government gives the workers what they need— a job, a home, enough to provide for their families—then the workers will see to it that no ill befalls that kind of government." But why should we depend on the political government to give us incomes, employment and ownership? If we do we'll have some form of dictatorial State. What we need is to build consumer, producer and public organizations, independent of the political government. We might all get "bread" through the political State as other nations are attempting, but if we do we'll wake up to find the "stone" of paternalism around our necks. * * * Quentin Reynolds says "Self-help was the cornerstone of the American tra dition and the democratic form of government was designed and adopted to preserve the structure resting on it." In other words, a democratic government can only be a coordinating agency through which we legalize and enforce agreements entered into voluntarily by individuals or groups to enable them to help themselves and benefit society as a whole. The Hearst New York Sunday Aîirror says in its department "Straws in the wind that make headlines of tomorrow" that "The cooperative movement in America . . . will make history before 1940" and cites as evidence the fact that "the co-ops are the backbone of the 'Swedish Way' to prosperity." A good resolu tion for 1939 would be to Scandinavianize America and make good on this prediction. 2 Consumers' Cooperation New Year's Thoughts of a Cooperative Employee YESTERDAY I was a part of a capitalistic economy which is contracting and is rapidly increasing poverty, unemployment and tenancy. I was employed by a Board of Directors who were undemocratically chosen by proxy votes to represent absentee owners whose primary interest was in personal speculative profits. I was constantly checkmated in any effort to put economic liberty, equality and fraternity into practice. TODAY I am part of a cooperative economy which is expanding and is steadily increasing incomes, employment and ownership. I am employed by a Board of Directors who were democratically chosen by delegates to represent active owners whose primary purpose is the general welfare of all. I am able to feel that every effort will help to build a cooperative economy of plenty and peace for all. ' TOMORROW I hope that each day of the New Year of 1939 and the years thereafter will accel erate the speed at which others will break the shackles of the old order which bind them and enter into the great experience of cooperative membership and employment. * * * GUEST EDITORIAL A National Cooperative Movement Perry L. Green, President Ohio Farm Bureau Cooperative Ass'n There are two -phases of the cooperative movement which need to be empha sized. The broader one of the two is the meeting of the general social needs of the people; the other is the building of a business set-up whose provisions compel general obedience to methods of procedure which contribute to the broad social needs of the people. We have gone along for quite a few decades without any emphasis having been placed on the desirability of having our forms of corporate business comply with such social needs. The cooperative movement, taking into consideration these two general principles which «hould apply, will, in its general business operations, be supported by social ideals which are practically lacking in any other form of business. It has the further advantage of rendering the same service to people that any other form of business is capable of rendering even though there is little, if any, appreciation of the real motivating social desire behind it being recognized by people generally. The cooperative movement, if it is to accomplish the maximum of results in a minimum of time, should not be compelled to wait until a full measure of under standing of consumer cooperation dominates the thinking of the people. The same kind of aggressiveness on the part of cooperative leaders that prompts the action of the leaders of business for private profit, if persisted in on a federated basis for a long period of time, will as unconsciously lead the people out of the meshes of a restricted distribution system as they have been unconsciously, led into it. It seems to me that the important problem before us now is to consolidate our efforts on a nation-wide basis in order that the movement as a whole may have the benefit, in a large way, of these two contributing forces which I have tried to designate. January, 1939 3 THE FREEDOM OF THE INDIVIDUAL IN DEMOCRACY Democracy guarantees to each member of a society the right to influence other members. This influence is exercised for the purpose of inducing a majority to favor some particular motion or project, so that, when a question comes to a vote, the majority will support the proposal. Efforts to induce people to vote one way or another are a part of the provisions of democracy. When a member of a democratic or ganization is about to attend a meeting and present a resolution, if on his way to the meeting he passes the houses of four different members, two of whom will support his resolution at the meet ing and two of whom will not, he na turally stops at the houses of the first two and urges them to come to the meeting. That is democracy. Democracy Demands Freedom and Truth On the floor of a democratic meeting an individual gets up and proceeds by his discussion to influence members of the meeting to do something he wants them to do. As a matter of fact, when he presents his resolution or any other proposition, democracy permits him to present it from the standpoint of its vir tues with the purpose of having it adopted. If no one presents the obverse side, so much the greater is the possibility of its acceptance. These are approved and natural methods which prevail in democ racy. They are the privileges of all mem bers. The characteristic of democracy is that it gives each individual the oppor tunity to influence other individuals in the interest of any particular project which the individual desires to promote. Others have the right to refuse to con form, or they may set up other projects as they see fit. Democracy can demand only two things: freedom and truth. James P. Warbasse An individual in a democratic organ ization has the right not only to be con cerned that voting members agree with his point of view but also that they ex press themselves by voting for it. Now it happens that in the cooperative move ment people cannot express themselves unless they are present to vote. For this reason, if it is a right of democracy to influence opinions, it is also a right of democracy to use influence to see that those opinions are expressed by voting. This means that the individual who would promote a project is justified in seeing that sympathetic members vote if they are present and that they make them selves present in order that they may vote. This is sometimes called "getting out the vote." But are invidious terms, such as "packing the house," "controlling the convention," and, "undue influence," justified? If they are, then that is pre cisely what a speaker who has good logic, facts, and presence does when his speech wins adherents to a cause. Persuasion is the Privilege of All Democracy is a scheme for giving everybody a chance by freedom of action, not only to win adherents to a proposal but to induce those adherents to come to a meeting and register themselves by voting. Winning adherents means little unless it is followed by the use of the franchise. "Packing the house" is always done by the "other side." "Our side" never packs a house; it only uses demo cratic persuasion which is the privilege of all. When it comes to a paid employee, who is also a member of an organization doing the same thing, I raise the ques tion, has he not a similar right? Democ racy stands for the freedom of the indi vidual. When an individual accepts em ployment in a cooperative society, does he then relinquish his freedom of action as a member of a democratic society? Why should an employee be expected to give up the democratic right of influ encing other members of a society which as a non-employee member he would have possessed? Has democracy a right to discriminate against a certain class of its membership? Employees Should Not Be Disfranchised If this thought is carried further, let us imagine the expansion of cooperation to the position in which all of the mem bers are employed by the cooperative so ciety. This is the ideal toward which cooperation aims. Under those circum stances, do all of these employees lose their individual right to act as free mem bers of a democratic society? If they do, to what extent? If in any society the members lose their right of independent individualistic action and must be neutral in all con troversial matters, does not such an atti tude bring democracy around to the very qualities of fascism to which we object? If all members in a meeting are em ployees of the society, and if they must all be neutral and not exercise the free doms of democracy to influence opinions and to bring people to vote as they want, then the circle has been traversed, and democracy has come around to the point where fascism begins. This thing we call fascism is suppression of the right of the individual to think and to act inde pendently and to influence others to think and to act with him, even though he is in opposition to a prevailing policy or the opinion of the majority. There is much talk about democracy. But if democracy is really something val uable we must not only understand it, we must also respect it. Thus from the standpoint of democ racy, individuals are justified in activities to influence others and to see that they are present and vote. In this, they are acting wholly within their rights and in conformity to the principles as well as the practices of democracy. Neutrality is practiced in democracy when a cause is so strong and so gener ally approved that no persuasion is neces sary to assure its adoption. Then its pro ponent does wisely to stop at the two other houses and bring with him to the meeting the two members who are not for the measure. Then he may present before the meeting both the good fea tures and the objections. And this is done. Neutrality in democracy is practiced, but only under these circumstances; or when some one himself is really indifferent and presents both sides. But after all, it is in the clashing of interests and opinions that democracy gets its zest and proves its capacity to serve useful ends. The Role of a Cooperative Official Experience teaches that there are cer tain functions in which neutrality is essential. The chairman of a democratic meeting must be neutral as chairman. But democracy has no right to deny him his freedom outside of the chair. It is the office that must be neutral. Likewise there are other offices, secre tarial, educational, and otherwise, in which the office itself must not be parti san. That means that a paid official must serve all elements in the spirit of im- Ertiality. But that paid official cannot denied his personal privilege, external to his official functions, to have opinions and to express them. In these situations, good taste and expediency recommend the elimination of conspicuous partisan ship. Here the man and the office are two different things. But democracy at its best cannot deprive the man of his freedom of opinion and of action. Consumers' Cooperation • January, 1939 A NATIONAL CONSUMERS' COOPERATIVE ORGANIZATION E. R. Bowen (INTRODUCTORY NOTE: The subject of the national organization of the Consumers' Co operative Movement in the United States has been under discussion by various committees for several years: by the Constitution Commit tee, by a Committee appointed by the Coopera tive League, by a Joint Committee of the Co operative League and National Cooperatives, and by the Executive Committees of the two organizations. As a result, the following chart and explanatory statement was presented at a meeting of the newly elected Board of Di rectors of the League in November 1938, which after full discussion was accepted in principle and certain initial steps were approved in the way of uniform dues and joint executive offices. It was particularly emphasized in presenting the subject that it was entirely from the stand point of discussing a principle of national or ganization and that no position ivas taken as to how or when to complete such an organization, future action will be taken if and when determined upon after democratic discussion.) We have just celebrated the 150th anniversary of the joining of our states into a political union under a Constitu tion. Today we are faced with an eco nomic necessity similar to the political necessity which our forefathers met which calls for equally wise action on our part. Just as our forefathers formed a political union of all the states, so should we today, after thorough consideration, form in the same geographic area a more definite economic union of all regional consumers' cooperative associations and adopt a more specific national educational and economic program. Necessity of a National Consumers' Cooperative Organization In the days when our national political union was being organized, the slogan was coined that "thirteen staves and never a hoop will not make a barrel." Just so today, individual regional cooperatives, unless banded together into a strong na tional organization, will never become a powerful economic force. The greatest appeal for the national organizing of our political states was "united we stand, divided we fall." This is also applicable today to our economic cooperatives. The thirteen political states faced the common enemy of control by autocracy. Today each regional coopera tive is greatly handicapped against nation wide monopolies. But united together our regional cooperatives can check-mate and eventually supplant monopolies. While our forefathers removed from the shoul ders of the American people the political yoke of tyranny, they left for later gen erations the task of removing from the shoulders of the people of America the economic yoke of monopoly. Thomas Paine, who became the great advocate of a federal government, pro posed that a national political union be organized "when the states saw them selves wrong enough to be put right." Just so a national economic union of all regional consumers' cooperative associa tions is timely today, in view of the self- evident difficulties of regional coopera tives in acting alone. After our national political union was organized, Paine de clared that "this union was naturally produced by the inability of any one state to support itself against any foreign enemy without the assistance of the rest." No more today is any one regional co operative sufficient unto itself to resist the common domestic enemy of monopoly without the assistance of the rest. There would have been as much reason for any state failing to join a national political union as for any regional cooperative today attempting to "go it alone." It should not require argument to sup port the statement that no one regional or group of regionals less than all, can either purchase, distribute, produce or finance as economically or efficiently for their members as can all the regionals Consumers' Cooperation joined together in one national organiza tion. While some savings can be made in distribution by a separate regional as sociation and still further savings can be made in production by a group of re gionals, no effective attack to prevent the power of monopolies in finance, produc tion or distribution can be made except by a strong national organization of all regional consumers' cooperative associa tions. Again quoting Paine, "it is not in numbers (of states) but in a union that our great strength lies." So today, it is not the number of regional cooperatives which gives the cooperative movement its greatest strength—that strength lies in the potential power of an economic union of all. Paine declared that "Our citizenship in the United States is our national character. Our citizenship in any particular state is only our local distinc tion." Just so today we must be national and international cooperators as well as local and regional cooperators. functions of a National Consumers' Cooperative Organization We must learn what can best be done locally, regionally and nationally in the Consumers' Cooperative Movement. Each decision must be approached from the standpoint of the best interests of the whole movement rather than the inter ests of some individual or group of in dividuals. The injection of individualism into the making of decisions affecting the whole is most unfortunate, whether in the cooperative movement or elsewhere. No matter whether the function is any one of the six principal departments of the Consumers' Cooperative Movement, namely, Development, Organization, Commodities, Services, Insurance or Fi nance, there are certain parts which can best be done locally, others regionally and others nationally. As an example, consider the matter of publicizing the movement. No one ex- January, 1939 cept a representative of a local associa tion can handle local publicity effectively. Other publicity is likewise largely only of regional interest and can therefore only be handled effectively by a repre sentative of the regional. On the other hand, there are other matters of natiorial public interest which no regional could handle as well as all the regionals banded together into a national publicity representative. This also applies to mat ters of education as well as commodities, services, insurance and finance. Some decisions relative to whether a matter can be best handled by local or regional associations or by a national or ganization can be determined on the basis of judgment in advance; others will only be eventually determined after ex periment. It should also be added that no final judgment can ever be made; changing conditions will constantly call for changes in the distribution of func tions for the greatest economy and ef ficiency. Membership in a National Consumers' Cooperative Organization The Consumers' Cooperative Move ment the world over recognizes no basic difference between cooperative purchas ing associations organized on the basis of Rochdale principles by ultimate users. All consumers' cooperative associations are basically one and the same irrespective of the type of products purchased, whether vocational or household supplies, and irrespective of the residence of their members, whether rural or urban. All purchasing by ultimate users is an act of consumption. Consumers' Cooperatives might be described as users cooperatives. The Swedish Cooperative movement has published a pamphlet containing a chart showing the democratic organization of the people as consumers and producers, which clearly presents their interpretation of consumers' cooperation as an all- inclusive movement, with no differentia- tion between kinds of supplies or occu- pation of purchasers. The following is a summary of their chart: operatives as well as a national consumers' cooperative organization. Another factor which requires most Our Economic • Interests 1. Consumer or Buyer Interest 1 2. Producer or Seller Interest {1 . Consumer of 1 Household Goods 2. Consumer of Vocational Goods t General and Special Consumer Cooperatives f Seller of Goods 1 Marketing Cooperatives (_ or Services j" and Labor Unions In describing the Consumers' Coopera tive Movement in Finland, the president of the International Cooperative Alliance, stated that "We have two large consum ers' cooperative groups in Finland." In one of these groups both household and vocational supplies are handled by the same national association; in the other household and vocational supplies are handled separately. When asked the rea son for the separation by the latter group, the answer given by their general mana ger was that it was the result of "mistaken theorizing" in the early beginnings of the movement. In a lengthy communication, the agri cultural adviser for the Cooperative Union of Great Britain declares that there is no differentiation between kinds of supplies or occupations of consumers in the Consumers' Cooperative Move ment in that country. Even where two local cooperatives are separately organ ized in a community, the one handling vocational supplies and the other house hold supplies, both are members of the same national Cooperative Wholesale Society, which handles both types of products. There is a constantly growing tendency to break down the barriers between rural and urban residents and between voca tional and household supplies in Ameri can local and regional cooperative asso ciations. This removal of all such differ entiations is vital to the building of the strongest possible local and regional co- 8 careful consideration in the building of a strong national consumers' cooperative organization in America is that of over lapping territories by regional groups. In some cases two strong cooperative asso ciations are already in existence in the same territory. It would seem reasonable that both should now be members of a single national organization and that in time they should also join together into one regional association. Where there is now one strong regional association, it should most naturally be a member of the national organization. If there is a small regional in the same territory, ex tremely careful consideration should be given before admitting it into member ship in the national and thereby encour aging competition between cooperatives. It would be far better for the smaller association to join together with the larger. As a comparison, taking an illus tration from the political field, no one would think of encouraging the develop ment of a small political state within an other state. Why, then, should a second economic regional be encouraged to de velop within the territory of an already organized and strong economic regional? Type of a National Consumers' Cooperative Organization Three types of national organization have been experimented with in other countries. There is every reason why we should profit by their experience insofar as possible, recognizing that we have a problem which no small country faces in that we must unite large regional asso- Consumets' Cooperation ciations into a national organization. The three types of organizations might be described as dual, unit and unit-dual. Britain first organized the Cooperative Wholesale Society and a few years later organized the Cooperative Union. For many years the leaders of the Union sup ported profit-sharing and ownership by the workers in a factory rather than own ership by the consumers of the products of the factory. Eventually the consumer ownership principle proved its far greater practicability, but they had left in their wake a second organization with en trenched positions and powers which was harder to eliminate than the theory it originally supported and which organiza tion still continues. Today official leaders of both the Union and the Wholesale are outspoken in stating that the dual or ganization plan which they have inher ited is outmoded, uneconomical, inef ficient and cumbersome. One of the two groups in Finland fol lows the dual plan. However, one of their principal leaders states that if they were to organize today they would likely adopt the unit plan. It is said that other countries in Europe have "profited by Britain's mistake." Sweden tried out the dual plan of organ ization in its early years and shortly dis carded it for a unit plan in which edu cation and economic functions are integral departments of a single national organization. Switzerland, Denmark and Norway likewise adopted the unit plan after observing the results of the dual plan. The largest group in Finland, as well as the Cooperative Movement in France, are organized as combination unit-dual types, which are in effect unit organizations except for their separate legal incorporation. In Finland this group elects the same delegates who meet the first day as a union and the second day as a wholesale. The same directors are elected for both the union and the whole sale, who in turn elect the same general manager. In France the situation is simi lar. The same delegates are elected for January, 1939 both the union and the wholesale, who elect the same directors. The directors then elect three managers of the whole sale and three secretaries of the union. Wherever the unit plan of organiza tion has been adopted in these countries, their leaders are strong advocates of the unit type; wherever the dual or the unit- dual plan has been adopted, leaders state frankly that they wish that they were organized on the unit basis. It would seem that, since the overwhelming testi mony of the leaders in these outstanding cooperative countries is in favor of the unit plan of organization, we could well profit by their experience and consider favorably the building of a single unit national organization here in our early flexible stages before we become organ izationally rigid and extremely difficult to change. In the United States we have not gen erally discussed or thought through thor oughly the question of the best type of a national organization. We have, in fact, neither of the three types of organ ization as in Europe. We have the unit type of locals, the unit type of regionals (with two exceptions which are appar ently in the process of becoming unit organizations) and yet have two sep arately organized national bodies of the dual type. If we believe in unit locals and unit regionals, which we evidently do judging by the manner in which we have organized, then why a dual type of national organization? If we are to be consistent, should we not either change our locals and regionals to the dual type, or change our national organizations to the unit type to correspond to our local and regional organizations? Since the growing tendency is to elect to the board of directors of both our national organizations many of the same representatives of regionals, it would seem logical that they might best consider and decide policies as to all national matters as a single unit directorate, with committees of the directors for each of the major departments. A NATIONAL CONSUMERS' COOPERATIVE ORGANIZATION REGIONAL CONSUMERS' COOPERATIVE ASSOCIATIONS BOARD OF DIRECTORS OFFICERS- EXECUTIVE COMMITTEE DEVELOPMENT ORGAN COMMITTEE COMM RESEARCH PUBLIC ARCHITECTURE EDUCA PERSONNEL RECRE/ RELATIONSHIPS LEGISL 1 DIRECTORS DEPARTM ZATION COMMODITIES ITTEE COMMITTEE TV ENGINEERING TION PURCHASING TION PRODUCTION ^TION DISTRIBUTION ENTAL COMMITTEES SERVICES INSUR COMMITTEE COMrV HOUSING AUTO MEDICAL FIRE BURIAL LIFE MISCELLANEOUS CASUA GENERALAND DEPARTMENT MANAGERS ANCE FINANCE \ITTEE COMMITTEE ACCOUNTING AUDITING CREDIT LTV BANKING i DEVELOPMENT 1 [ORGANIZATION H COMMODITIES [~| SERVICES [| INSURANCE f] FINANCE TECHNICAL COMMITTEES DEVELOPMENT rjoRGANIZATIONFl COMMODITIES |~j SERVICES jj INSURANCE [I FINANCE The above chart has been drawn to apply particularly to a national cooperative organization. In time, as regional and local cooperatives develop in size, it is probable that whatever may be decided upon as the best distribution of functions by departments and divisions of a national organization will also apply to regional and local organizations as well. Chart of a National Consumers' Cooperative Organization To the end of initiating a thorough discussion of the subject of the best type of national organization for America, we present herewith a chart of a unit Na tional Consumers' Cooperative Organiza tion. The members of such a national or ganization would be the regional coop eratives, who in turn have as their mem bers the various locals. These regional cooperatives would be, in a national eco nomic union, somewhat similar to the states in our national political union. They would determine as to what func tions to transfer to the national and what to retain for themselves as regionals. Provision is made in the chart for regional cooperatives to organize them selves into distria groups for either edu cation or business if they so desire. Such district groups would be organized en tirely at the option of the regionals who desired to do so. Regional members of the national or ganization would pay uniform dues per member to the national for the support of the development and organization de partments which are not self-supporting and be entitled to equitable representa tion of delegates to the congress of the na tional organization. Such delegates would elect the board of directors of the national organization and determine as to national policies. For purposes of efficiency, the func tions of such a national organization are divided into six departments, namely: 1. Development Department; 2. Organ ization Department; 3. Commodities De partment; 4. Services Department; 5. Insurance Department; 6. Finance Department. The general term "Development De partment" is used to cover research, per sonnel, architecture and relationships. The general term "Organization Depart ment" is used to designate the four di visions of publicity, education, recreation and legislation. Likewise the chart lists under each of the other departments what might be considered as the major di visions. The board of directors would divide itself into six major committees for the more efficient handling of these depart ments. A general manager and depart ment managers to head up each of the six major departments would be selected by the directors. Each regional would nominate from its staff a representative to serve on a technical committee for each department. Each technical committee would con sult with and report to the manager of its department and also, where desirable, to the directors' committee. In turn, each department manager would consult with and report to the whole staff of managers and to the department committee of the board of directors. The chart accompanying is the result of lengthy study and discussion and incor porates suggestions from many coopera tive leaders. It is not considered to be final but to present for further discussion and decision a more definite proposal for a National Consumers' Cooperative Or ganization than has been hitherto formu lated in such a specific manner. "THE LORD HELPS THOSE ... Who Help Each Other" The Harmon Foundation has just com pleted a three reel, 16 mm. silent motion picture describing how the miners, farmers and fishermen of Nova Scotia have lifted themselves out of dire pov erty through adult education and coop erative organization. Two months of camera work in Nova Scotia, four months of research and editing, and over a thousand dollars cash went into the production of this remark able cooperative film. The movie may be secured for a single showing for $4.50 and $2.25 for each additional showing or $13.50 for a week's engagement. For information write The Cooperative League or the Harmon Foundation, 140 Nassau Street, New York City. 10 Consumers' Cooperation January, 1939 11 Il™ l' COOPERATIVE HIGHLIGHTS OF 1938 Nineteen thirty-eight will go down in co-op history as a year of growth and coordination. While private profit business went through what it called the "Roosevelt Recession" and hit the lowest levels since '33 and made the most rapid "recovery" in history only because the preceding drop had been even more precipitous, America's consumer co-ops described their year with one word, Progress. In a few instances the dollar volume was down a few points because of lower price levels, but actual volume of goods and services handled continued to mount. National Cooperative Organization The Biennial Congress of The Coop erative League, meeting in Kansas City, October 12, 13 and 14 reported its membership as 965,000 as against 704,000 at the time of its 1936 Congress. From the Congress grew proposals for a coop erative financial agency to free the co operatives from dependence on outside financial sources and to mobilize co-op funds for more rapid expansion of coop erative distribution and production. The election to the board of directors of representatives of regional cooperative associations gave the national consumers cooperative movement a more democratic base. The Congress moved to strengthen the relations of organized consumers with organized labor and agriculture. Number One event of 1938 was the adoption in principle of a program look ing toward a greater coordination of the activities of The Cooperative League of the U.S.A. and National Cooperatives, Inc. Joint executive offices were opened in the Transportation Building, 608 South Dearborn, Chicago, January 1. (The League will also continue its New York office.) The coordination program will strengthen the education, legislative and economic activities of the organiza tions which serve a million members. Wallace J. Campbell Complete statistics are not yet avail able for cooperative business in 1938. But more than $440,000,000 worth of goods and services were handled by con sumers cooperatives in rural areas in the 1937-38 farm business year. Petroleum products handled by co-ops in both rural and urban areas topped $110,000,000 in 1937. Twenty-four hundred co-op stores with 330,000 members and $107,250,000 business were reported by the U.S. Bureau of Labor Statistics. Cooperative credit unions reported 2,000,000 members and assets well over $100,000,000 at the close of the year. Other cooperative activities for which summary statistics are not available include cooperative insurance, cafeterias, housing, rural electrification, telephone, book service, medical and burial cooperatives. Regional Cooperative Associations Five co-op grocery wholesales adopted a program of uniform labeling and have voted to adopt government grade labeling on CO-OP label products as rapidly as feasible. Eastern Co-op Wholesale, one of the group, has established its own test ing kitchen and model co-op store in its new Brooklyn warehouse to check all co op products and to train prospective em ployees. Cooperatives, already credited with breaking the commercial fertilizer monop oly consolidated their position as a "yardstick" when the Farm Bureau Co operative Association, Columbus, Ohio, and the Cooperative G.L.F. Exchange, Ithaca, New York, purchased a 100,000 ton fertilizer factory in Baltimore. Consumers Cooperative Association, North Kansas City, is completing a drive for funds to build the first co-op oil re finery in the U.S. and last year shipped oil to co-ops in France, Scotland, Bul garia, Estonia, Holland and Canada. Midland Co-op Wholesale, Minneapo lis, launched a program, in cooperation with its affiliated local cooperatives, to establish co-op grocery stores. Ohio co-ops purchased the site on which their 8-story "co-op skyscraper" stands in downtown Columbus. On completion of an anticipated $5,- 000,000 year, Farmers Union Central Ex change, St. Paul, announced a program which will consolidate co-op funds as a first step toward a co-op bank. A financial declaration of independence was approved by the annual meeting of Consumers Cooperative Association, North Kansas City, which is expected to put the organization on a spot cash basis with its member co-ops; this action plus the formation of a credit pool will elim inate as far as possible dependence on outside capital. Central Cooperative Wholesale, Su perior, wound up its twentieth year by launching one of its most ambitious steps into the field of production by purchasing a feed mill. The Pacific Supply Cooperative built its own warehouse and headquarters in Walla Walla, Washington, and arranged for wholesale facilities in Portland, Ore gon and Caldwell, Idaho. The Grange Cooperative Wholesale, Seattle, continued to expand its services and launched the Grange Co-op News as an educational service for local retail cooperatives affiliated with it. The Pennsylvania Farm Bureau Coop erative Association, Harrisburg, wound up the year with fifteen county co-ops organized and a wholesale volume of $1,250,000. Indiana Farm Bureau co-ops, with a record $6,600,000 business in 1937, entered their second year with co-op life insurance service and their fourth with co-op auto insurance. The Farm Bureau Mutual Auto Insur ance Company, Columbus, jumped from seventh to fifth place among the mutual casualty companies of the country. It started writing insurance in New York State under the sponsorship of Eastern Cooperative Wholesale, Brooklyn, in Jan uary and now serves 11 states. At the 12 Consumers' Cooperation January, 1939 year's end it reported more than 200,000 policy holder-members and assets near $6,000,OOQ. The Cooperative Life Insurance Com pany of America, Columbus, bought by the co-ops and transformed into a coop erative three years ago, increased its cover ages more than $8,000,000 last year. The Workmen's Mutual Fire Insurance Society, New York, reported at its 66th annual meeting a membership of 68,295 in 11 states. Cooperative Distributors, a mail order co-op with headquarters in New York, serving members in various sections of the country, started wholesaling a line of co-op drugs and cosmetics to retail co operatives. The Cooperative Book Club, New York, added a wholesale department during the year and is now serving gen eral, school and cooperative libraries and other institutions. Consumers Cooperatives Associated, Amarillo, outpost of the cooperative movement serving retail cooperatives in the panhandle of Texas and in parts of New Mexico and Oklahoma, continued to increase its buying activities. The Co operative Wholesale, Chicago, youngest co-op grocery wholesale, served a growing city co-op business. California cooperatives affiliated with the Cooperative Education Association, Los Angeles, and the Northern Califor nia Cooperative Council, Oakland, made plans to extend their joint buying. Relations with Other Movements The American Federation of Labor at its annual convention in Houston and the Congress of Industrial Organizations at its first annual congress in Pittsburgh gave cooperatives renewed endorsement. The Labor and Cooperative Confer ence held in Dillonvale, Ohio, Septem ber 16, 17 and 18 under the sponsorship of the Labor Committee of The Coopera tive League, drew together 160 represen tatives of organized labor, farm, credit union and cooperative organizations to discuss the need for increased consumer 13 III'I organization in the ranks of organized la bor. The Eastern Cooperative League sponsored a similar conference for New York and vicinity in April which was at tended by representatives of 40 unions and an equal number of cooperatives. The Committee on the Church and Cooperatives of the Federal Council of Churches sponsored Inter-Faith Confer ences on Credit Unions and Consumer Cooperation in Columbus, Washington, D.C. and Boston. The National Catholic Rural Life Conference discussed a report of its special Committee on Cooperatives at its annual convention. Pope Pius XI, in a letter from Cardinal Pacelli to Bishop Morrison of Antigonish, commended the cooperative and adult education move ment in Nova Scotia. The National Education Association, at its convention in New York in June, de clared that information about the coop erative movement should be made an in tegral part of the curricula of public schools and colleges throughout the country. National Recognition The Senate Committee on Unemploy ment and Relief called the General Sec retary of The Cooperative League of the U.S.A. to present evidence of the effect of the consumers cooperative movement in stabilizing business volumes, savings and employment. The American Economic Association, for the first time, invited a representative of the consumers cooperative movement to appear before its 51st annual conven tion. Four Governors, Aiken of Vermont, Lehman of New York, Benson of Min nesota, and LaFoIIette of Wisconsin, dorsed consumer cooperation and the Governors of Minnesota and Wisconsin set aside special Cooperative Weeks. The First Lady gave evidence of her contin ued interest in the movement when she declared : "The age of cooperation is with us to stay. . . . Where we find it con venient and valuable not only to 14 ourselves but to our neighbors, we should join in cooperative move ments." Among the visitors from European co operatives were: Albin Johansson, presi dent, and Axel Gjores, secretary, of Kooperativa Forbundet of Sweden; Reginald Gosling, president, and Wal ter Batley, member of the board, of the London Cooperative Society, largest retail cooperative in the world; J. M. Davidson and A. Buchanan, members of the board of directors of the Scottish Co operative Wholesale Society; Mrs. Elea nor Barton, former general secretary of the Cooperative Women's Guild of Great Britain; and Anders Hedberg, secretary for international questions, of Koopera tiva Forbundet. On the Educational Front Sixty educational directors, publicity men and editors attended the three-day Conference on Cooperative Publicity and Education held at Waukegan, Illinois in June. Immediately preceding the educational conference the Cooperative Society for Recreational Education held its Third Annual Summer School at Waukegan providing specialized training for those interested in cooperative recreation. The Eastern, Central and Northern States Cooperative Leagues held very suc cessful summer institutes offering both general and employee education. Eastern Cooperative League reported an increase of 86 per cent in membership last year. Cooperative Medicine became headline news when the U.S. Department of Justice filed suit against the American Medical Association under the anti-trust laws for its discrimination against the Group Health Association, a medical co op in Washington, D.C. The co-op hos pital in Elk City, Okla. completed a suc cessful year with plans to alter its legal structure to enable many more of its patrons to become active members. A health cooperative was launched in Su perior, Wisconsin, with the sympathetic support of the Wisconsin Medical Society. New Cooperative Ventures Three model towns built by the Farm Security Administration, Greenbelt, Mary land; Greenhills, Ohio and Greendale, Wisconsin have organized all their busi ness enterprises as cooperatives. Consumer Distribution Corporation, New York, founded by the late Edward A. Filene, is providing management service for the co-ops in Greenhills and Greenbelt and is cooperating with Midland Cooperative Wholesale, Minneapolis, which has a management contract for the operation of the enterprises at Greendale. The first co op movie theatre in the U.S. opened at Greenbelt in October. Rochdale Institute completed its first year as a national training school in con sumer cooperation in October. Twenty students a term have taken the training course. Circle Pines Recreation Center, spon sored by the Central States Cooperative League, Chicago, was the scene of a series of ten cooperative institutes running con secutively throughout the summer. Circle Pines is a delightful camp near Hastings, Michigan, built by the WPA and leased to the cooperatives. The Wisconsin Cooperative Housing Association, Madison, began construction on the first 22 homes in one of the first co-op housing projects since the de pression. Student cooperatives at the Universities of California, Oregon, Washington, Idaho, and Washington State College, or ganized the Pacific Coast Student League of College Cooperatives which will act as a clearing house of information to assist the organization of other campus co-ops and to help solve mutual co-op problems. One hundred and eighty-six American educators, ministers and cooperative leaders took part in four tours of Nova Scotia cooperatives and attended the Rural and Industrial Conference which drew together 1,000 farmers, miners, and fishermen from cooperatives in the Mari time provinces. Consumers' Cooperation January, 1939 National Broadcasts in 1938 Nation-wide broadcasts on the coopera tive movement during the year included: "Cooperatives and Peace," James Myers, Co lumbia Broadcasting System, February 26 "Cooperatives and Trade Agreements," Wal lace J. Campbell, National Broadcasting Company, March 6 "Cooperatives in Sweden," Albin Johansson, Columbia Broadcasting System, July 11 "The Danish Cooperatives," Ruth Bryan Owen Rhode, National Broadcasting Company, August 1 "Rural and Industrial Conference—Coopera tives in Nova Scotia," Dr. J. J. Tompkins, Dr. J. Henry Carpenter, Kenneth Leslie and Ida Gallant, National Broadcasting Company and Canadian Broadcasting Com pany, August 17 "Effects of European Cooperatives on Retail Trade," Anders Hedberg, international broadcast by short wave, WlXAL, Boston, September 27 "Preview of the Cooperative Congress," James P. Warbasse and Howard A. Cowden, Co lumbia Broadcasting System, October 11 "The Cooperatives Move Forward," round table from Co-op Congress, Murray D. Lincoln, A. J. Hayes and L. E. Woodcock, National Broadcasting Company, October 13 New Cooperative Publications By the year's end these new books had been added to a very comprehensive array of cooperative literature: "Cooperation: An American Way," John Daniels "The Lord Helps Those . . . ," the story of the Nova Scotia cooperatives, Bertram B. Fowler "Cooperatives in America," Ellis Cowling "Consumers Cooperation in Great Britain," American edition, Carr-Saunders and others "Principles of Cooperative Medicine," Dr. Michael Shadid "Manual of Cooperative Directors," V. S. Alanne The crop of new pamphlets included: "Cooperative Education," James P. Warbasse "A Tour of Nova Scotia Cooperatives" "Cooperatives and Peace," Harold Fey "Farmers and Consumer Cooperation," Koop erativa Forbundet "How Swedish Cooperatives Break Monopo lies," Albin Johansson and others "Course of Study on Consumers Cooperation," Minnesota State Department of Education "Report of the Cooperative Committee," Na tional Education Association 15 Hi 'H1 ni 11 «-- t*J t RECENT COOPERATIVE ARTICLES Best's Fire and Casualty News, November, 1938, "Our Cooperative Movement," Louis H. Pink. Business Week, December 3, 1938, "New Co-op Merchandising Plans," Eastern Coop erative Wholesale plans a training school, . a testing kitchen, and quality grades. • "The Canadian Hospital, September, 1938, "Co operation," an editorial. Commonweal, December 9, 1938, "Co-ops on the Chesapeake"—the Antigonish of the U.S., Harry Sylvester. Freeman, November, 1938, "Cooperators Prove Their Inadequacy," Milton Pixel. A Georg ist attacks the co-ops. Free America, November, 1938, "Community Hospital," Bertram B. Fowler. The story of Dr. Shadid and the co-op hospital at Elk City, Okla. October, 1938, "Cooperation: A Means Or An End," Raymond Scott. "Cooperation: A Means To An End," Bertram B. Fowler. A friendly debate in which Mr. Fowler seems to have the upper hand. Industrial and Labor Information, November 7, 1938, "Consumers Cooperative Societies in Spain." Based on a pamphlet recently published by the National Federation of Cooperative Societies of Spain. Journal of Adult Education, October, 1938, "A Teacher of Fishermen by the Sea," Benson Y. Landis. The philosophy of "the soul of the movement" in Nova Scotia. Journal of the National Education Association, October, 1938, "Study of Cooperatives in Schools." Recommendations of the N.E.A. Committee on Cooperatives. November, 1938, "How Swedish Coopera tives Educate the People," Albin Johansson. Condensation of Mr. Johansson's radio speech of last summer. La Femme Polonaise, June, 1938, "A Coopera- tist's Journey Through Poland," Stanistawa Gorynska. Interesting facts about the Polish cooperatives. The Messenger, December 15, 1938, "Holier Than Thou," an editorial based on the edi torial of the same name in Consumers Cooperation. Mjchaelman, Autumn, "What the Press Missed in Nova Scotia," Very Rev. V. F. Nicolle, S.S.E. The spirit behind the cooperative developments. Monthly Labor Review, October, 1938, "Opera tions of Credit Unions in 1937." "Coopera tive Purchasing by Farmers, 1936." News for Farmer Cooperatives, November, 1938, "Co-op Buying is Changing Agricul ture," J. A. McConnell. Pathfinder, December 24, 1938, "Co-ops—They Form a Giant Democratic Enterprise," 16 Background and current material on the cooperatives. Political Digest, December, 1938, "Consumers' Cooperatioh," General John Hartnett. The article carries the subtitle, "An American Way Out from Depressions, from Extreme Wealth and Poverty, from the Strain of Competition, and from War." Printers Ink Monthly, October, 1938, "How Swedish Cooperatives—and Why," Dr. Mauritz Bonow. A splendid article on KF's educational and advertising program—many excellent illustrations. Protestant Digest, November, 1938, "Fruits of the Cooperative Movement," Eiben M. Parkhurst. The spiritual values of coopera tion. Social Forum, December, 1938, "A Canadian Pioneer—Father J. J. Tompkins,"- E. J. Hatten. Social Frontier, December, 1938, "The Reli gious Attitude and the Consumer Econ omy," Dr. Horace M. Kallen. Sunday Mirror, Magazine Section, December 4, 1938, "Experiment in Utopia." Greenbelt, Maryland, is one year old—America's "Guinea Pig" town in cooperative economy. Talks, October, 1938, "K.F.," Albin Johansson. A reprint of Mr. Johansson's talk over the Columbia Broadcasting System. Tide, October 1, 1938, "Co-op Baiting"—the government's venture at Greenhills comes in for some. Zivns Herald, September 6, 1938, "Some Fruits of the Cooperative Movement," Elbert M. Parkhurst. New Cooperative Literature "Father Tompkins of Nova Scotia — A Teacher of Fishermen by the Sea," by Benson Y. Landis, republished from the Journal of Adult Education, 8 pages, 3 cents, available from The Cooperative League. "Index of Laws Pertaining to Cooperation," by V. Tereshtenko and research staff, WPA Cooperative Project, 52 pages, mimeo graphed, free, available from The Coopera tive League. MANAGER WANTED An expanding Consumers Coop erative in the midwest, gross busi ness for 1938 in excess of $100,000, requires a capable, well-trained manager, with some cooperative ex perience. Address, with full par ticulars, XY, Care of Cooperative League, U.S.A., 608 South Dear born, Chicago, Illinois. \ i Is This the American Dream? Editorial The Austrian Cooperative Bank Otto Grossman Why Poverty — How Plenty? AFL Survey of Business Teaching Consumers Cooperation In a Secondary School Carl+on John Siegler Cooperatives on the March February 1939 Consumers' Cooperation CONGRESS PROCEEDINGS— Now available at 25c. Complete reports of the llth Biennial Congress of The Cooperative League of the U.S.A. are now available. The reports jjs printed in full in the special November- December issue of Consumers' Coopera tion, are invaluable for your permanent records of the cooperative movement and will be in constant use as reference for anyone vitally interested in the progress of the cooperative movement. Because the proceedings were printed in Consumers' Cooperation they are avail able at the extremely low price of 25c. per copy, 5 copies for $1. Send your order today to: THE COOPERATIVE LEAGUE 167 West 12th Street New York City CALENDAR OF COMING EVENTS Ohio Farm Bureau Cooperative Associa tion, Annual Meeting, Columbus, Feb ruary 14, 15. Cooperative and Labor Institute, Racine, Wisconsin, February 24, 25, 26. Midland Cooperative Wholesale Mid winter Conference, Milwaukee, Febru ary 23-25; Minneapolis, March 2-4. Board of Directors, Cooperative League of the U.S.A., Chicago, March 23. National Cooperatives, Annual Meeting, Chicago, March 24, 25. Central Cooperative Wholesale, Annual Meeting, Superior, Wisconsin, April 15-16. Central States Cooperative League, and The Cooperative Wholesale, Inc., An nual Meeting, Chicago, April 22, 23, 24. THE COOPERATIVE LEAGUE 167 West 12th Street, New York City 608 South Dearborn, Chicago DIVISIONS: Auditing Bureau, 167 West 12 St., N. Y. C. Medical Bureau, 5 E. 57 St., N. Y. C. Design Service, 167- West 12 St., N. Y. C. Rochdale Institute, 167 West 12 St., N. Y. C. Clusa Insurance Service, Ii5 Kent Ave., Brooklyn, N. Y. AFFILIATED REGIONAL COOPERATIVES Name Central Cooperative Wholesale Consumers' Cooperatives Associated Consumers Cooperative Association Cooperative Book Club Cooperative Distributors Cooperative Recreation Service Cooperative Wholesale, Inc. Eastern Cooperative Wholesale Farm Bureau Cooperative Ass'n Address Superior, Wisconsin Amarillo, Texas N. Kansas City, Mo. 118E. 28St.,N. Y. 116E. 16 St., N.Y. Delaware, Ohio 2301 S. Millard, Chicago 135 Kent Ave., Bklyn Columbus, Ohio Publication Cooperative Builder The Producer-Consumer Cooperative Consumer Readers Observer Consumers Defender The Recreation Kit Farm Bureau Mutual Auto Insurance Co. Columbus, Ohio Lansing, Michigan St. Paul, Minn. Seattle, Washington Indianapolis, Ind. Minneapolis, Minn. Chicago, 111. Walla Walla, Wash. Harrisburg, Penn. Indianapolis, Ind. 227 E. 84th St., N. Y. E.C.L. Cooperator Ohio Farm Bureau News Ohio Farm Bureau News Michigan Farm News Farmers' Union Herald Grange Cooperative News Hoosier Farmer Midland Cooperator Penn. Co-op Review Farm Bureau Services Farmers' Union Central Exchange Grange Cooperative Wholesale Indiana Farm Bureau Coop. Association Midland Cooperative Wholesale National Cooperatives, Inc. Pacific Supply Cooperative Pennsylvania Farm Bureau Coop. Ass'n United Cooperatives, Inc. Workmen's Mutual Fire Ins. Society DISTRICT LEAGUES Central States Cooperative League 2301 South Millard Ave., Chicago, Illinois Eastern Cooperative League 135 Kent Ave., Brooklyn, N. Y. Northern States Cooperative League Sexton Building, Minneapolis, Minnesota California Co-op Education Ass'n 1676 E. 85 Street, Los Angeles, Cal. Northern California Co-op Council 372—40th Street, Oakland, Cal. National Cooperative Women's Guild Box 1000, Superior, Wisconsin CONSUMERS' COOPERATION OFFICIAL NATIONAL JOURNALOFTHE CONSUMERS' COOPERATIVE MOVEMENT PEACE • PLENTY- DEMOCRACY Volume XXV. No. 2 FEBRUARY, 1939 Ten Cents Consumers' Cooperation Simplified We are indebted to Arthur W. Baum, author of the article "Consumers Try Cooperation" in the February issue of Country Gentleman, for the following simplified description of a Consumers' Cooperative which he used in his intro duction : " 'Now look,' Freckles piped, 'you got a nickel, and I got a nickel. You can git five of them lemon balls with orange stripes for your nickel and I can git five for mine. But the store man'll sell ten of 'em for nine cents, and for the other penny—' That was as far as he ever got. Pigtails, although a little slow in her class arithmetic, was pure lightning in front of a glittering candy case. 'We can get two licorish whips,' she finished promptly. 'That's elegant.' By the miracle of joined purchasing power they had achieved eleven cents worth of living between them—for a dime." ^ ^ -a* "Learning is not by force. You can't get into a man's brain with a monkey- wrench and change his mind. You can show him the light, from that on he has to take the steps himself." —Dr. M. M. COADY, Director Extension Department St. Francis Xavier University An organ to spread the knowledge of the Consumers' Cooperative Movement, whereby the people, in voluntary association, purchase and produce for their own use the things they need. Published monthly by The Cooperative League of the U. S. A., 167 West 12th St., N. Y. City. E. R. Bowen, Editor, Wallace J. Campbell, Associate Editor. Contributing Editors: Editors of Cooperative Journals and Educational Directors of Regional Cooperative Associations. Entered as Second Class Matter, December 19, 1917, at the Post Office at Netv York, N. Y., under the Act of March 3, 1879. Price $1.00 a year. "Economic Democracy Is Users' Ownership" says Murray D. Lincoln In his annual address as Secretary of the Ohio Farm Bureau Federation, Murray D. Lincoln defined democracy in business as follows: "My understanding of economic democracy is the ownership and control of economic institutions by the people who use their services." "Users' ownership" is a good phrase. It is all-inclusive. It covers individual ownership of farms and homes. It covers ownership by cooperatively organized consumers and producers of the businesses and banks which they "use." It covers ownership by the people of the utilities which they "use." A "users-owned" world is what cooperators intend to organize. * * * Did You Get Your Share of the 1938 U. S. Income? The estimated total income of Americans in 1938 was $64,000,000,000. On the basis of approximately 30,000,000 families this would mean an average of a little over $2,000 per family. In 1929 we produced $3,000 per family, or half as much more. Two questions are pertinent: Why are we satisfied now to produce sixty billion when we once produced ninety billion—How should the national income be divided per family? These questions cannot be dodged. They represent the basic problems of ethics in division of income and efficiency in production. * * * Ownership of the Good Earth The Report and Recommendations of the Farm Tenancy Committee of the Iowa State Planning Board, published under this title, contains many challenging statements and statistics which cooperators should read. Fifty per cent of Iowa farms are now tenant operated; 58% of Iowa farm acreage is tenant operated; 75% of the value of all farms belongs to landlords and over-burdened debtors. On the basis of these cold statistics, the Committee makes these general statements : "The good earth was never intended ... to be a source of benefit to a few and a mere means of servile labor to others. "Ownership of productive property is essential to economic freedom, hence to political freedom. And we, unhesitatingly state that owner ship of land by the family that lives upon it and operates it, is the best way to secure and retain these manifold freedoms and thus achieve permanency for the free, democratic institutions we cherish." Under the heading "General Recommendations suggested for Serious Consid eration After Careful Study," we are delighted to note the following: "The proper application and practice of cooperative credit, con sumers' and producers' cooperatives, and processing cooperatives might be the very steps needed for Iowa farmers to retain the wealth they produce and thus achieve a state of deserved prosperity and help create a better situation for the whole nation." Iowa is on the march to recover ownership of its farms by the farmers when such a report is made by a state-wide committee of 45 members. The implications of the report are that some lowans are beginning to understand that the only way to recover farm ownership is by the prior recovery of ownership by the people of the businesses and banks of every community through the organization of coop eratives. The Committee might well have substituted the word "are" for "might be" in the above, since Denmark has positively proven that cooperative purchasing, marketing and credit are able to completely eliminate tenancy. 18 Consumers' Cooperation Your real power is in the money you spend. Since all production is ulti mately for consumption, your conscious use of your purchasing power will enable you to eventually control production in your own interests. * * * And Non>, Dear Children — This morning, dear children, you are about to learn the "why and wherefore of our American way of living" through the kindness of your dear friends the National Association of Manufacturers of the United States of America. "Two kinds of government have developed . . . the first is individ ualistic, the second collectivistic . . . the American system is individualistic. . . . Under the American system we have freedom and equality of opportunity." What is your question, Willy? You want to know why in this America of equal opportunity your father cannot get a job? It is because the collective theorists inter fere with the practical process of individualism, Willy. Now let me read on. "The ability of the consumer to buy represents the dynamic force of the system." Your question, Lilly? You ask why your mother hasn't the ability to buy more to eat and wear? Well, I'm sorry, but we cannot talk about such personal matters in school. Those who like this sample and wish to learn more about "The American Way" and "The American Standard of Living," etc., etc., can get free copies of eight such booklets beautifully printed and illustrated and full of such economic bunk from cover to cover by writing for "You and Industry Series" to 14 West 49th St., New York City. It is surely high time that cooperators in other states offset this propaganda by following the example of Wisconsin, Minnesota and North Dakota and providing for the teaching of the true economic facts to their children. * * % What Will Happen to Private Dealers as Cooperatives Develop? This question is often asked at meetings where cooperatives are discussed. The best answer is a counter question, "What is happening to private dealers now?" The testimony of Dr. Willard L. Thorp of Dun and Bradstreet, before the Monopoly Investigation Committee in Washington, presented the facts in the form of a chart showing that from 1900 to 1938 an average of over 20% of businesses discontinue operations every year. Herman Oliphant, general counsel of the Treasury, who is a member of the Monopoly Committee, commented, "The door to opportunity seems largely an opportunity to fail." There's just one thing which can save dealers from failing and that is for the farmers and workers of America to reorganize the businesses of every com munity into cooperatives. Then the present dealers can become employees and managers of the cooperatives, if they are cooperatively minded and capable, and save themselves as well as help save their communities. The present economic system only results in the end in busted dealers, tenant farmers and unemployed workers. When Kagawa of Japan was in America he answered the question with the simple statement, "When the automobile came in, the horse and buggy had to go out." Dr. J. J. Tompkins of Nova Scotia says in answer to the same question, "The people are not going to continue to starve—they are not going to wait for a few fellows who want to sell them a few shoe strings." February, 1939 19 A Lesson For Cooperatives From Capitalistic Business A trustee of the Reo Motor Car Company says there are four steps to be taken to put the company back on its feet. They apply equally to cooperatives, whether to get them going or keep them going. They are: efficient management, competent board of directors, stockholders who work together, and adequate finances. * * * Business and Banking Make and Keep Too Much Profit Leonard P. Ayres, vice-president of the Cleveland Trust Company says, "If the prospects for profits could be restored to about their old proportions we could produce a national income of 80 billions." Ayres is one of the statisticians of big- business-banking. Yet his reasoning is entirely unsound. It was the excess profits of 15 billions in 1929, when we produced a national income of over 80 billions, which the Brookings Institution report proves was the cause of reducing production. Increased profits cannot restore production—they will prevent it. Only widely distributed purchasing power can increase production. Cooperatives are one of the effective means of distributing purchasing power by the distribution of savings (profits) to every purchaser in the form of patronage returns and interest on shares. * * * Is This the "American Dream" in an Economic System? Is an economic system which will produce these results either ethical or efficient ? The items are from recent newspaper stories. Brenda Frazier whose recent "coming-out" party cost the people of America $25,000, is allowed by the court $52,000 a year, or $1,000 a week, for maintenance and support. The Southern Pecan Shelling Company has petitioned the Wage- Hour Administration for permission to pay learners 15c. per hour rather than the minimum of 25c. - The United States Chamber of Commerce has concluded that "the government must continue to subsidize farmers." The Securities and Exchange Commission reports that "insiders" sold their shares in McKesson & Robbins "shortly prior to the sus pension of trading on December 6 by the New York Stock Ex change" before the Coster-Musica fraud was uncovered. One of the insiders who sold his stock was later elected president to succeed Coster-Musica. The Railway Business Association advocates a federal railroad sub sidy of between one and two billion dollars. "The association repre sents the views of companies manufacturing and selling railway equipment." Export sales of American goods in 1938 exceeded imports by over a billion dollars, the U. S. Department of Commerce reports. Euro pean countries still owe us billions of war debts and defaulted bonds. Price, Waterhouse & Co., who "overlooked" millions of fictitious crude drug assets in auditing McKesson & Robbins, were paid over $1,000,000 in fees. $102,015 was spent to see the Louis-Lewis prize fight which was described as the "prime butchery of the pugilistic age" and "one of those magnificent spectacles of brutality that only the prize ring shows." Draw your own conclusions. Does this kind of economics really represent the "American Way" we want? 20 Consumers' Cooperation THE AUSTRIAN CENTRAL COOPERATIVE BANK (EDITOR'S NOTE: The Consumers' Cooperative Movement in the United States is now dis cussing the possibilities of a greater develop ment of cooperative finance. Otto Grossman, former general manager of the Austrian Central Cooperative Bank, who was forced to flee from Austria following the dissolution of the bank when Fascist dictator ship came into power, is now in the United States. We are indeed fortunate to have from Mr. Grossman this special article telling the history of cooperative banking in Austria from its organization to its forced dissolution by the political dictatorship which so ruthlessly crushed the cooperatives. The success and ser vice of the bank to the cooperative movement and other organizations in Austria indicate most clearly the advantages to be gained by the further development of cooperative banking in the United States.) THE AUSTRIAN Consumer Cooperative Movement was already in an upward trend before the World War. The coop eratives were united in a Central League, the president of which was Dr. Karl Renner, formerly the first chancellor of Austria. In every one of the smallest towns of Austria, there were consumer cooperatives. The largest one was in the capital, Vienna, with a great network of branches all over the city. The supplies for these cooperatives came through the Wholesale Cooperative Society, of which Dr. Karl Renner was also the president. The cooperative move ment included a great many credit unions in Austria. A great number of building societies also belonged to the league of cooperatives. Withdrawal of Private Bank Loans Forces Action As the turnover increased by a large amount during and immediately after the World War, the local cooperatives and especially the wholesale, were compelled to borrow from private banks, which February, 1939 Otto Grossman they were able to do at that time. Later on, the banks suddenly withdrew their credits and asked the cooperatives for quick re-payment of their loans. In this way, the consumer cooperatives and their Wholesale Cooperative Society came into an extremely precarious situation, which they could overcome only with the great est efforts. At that time the leaders of the cooperative movement in Austria, especially Dr. Renner, perceived fully for the first time chat the most important task of the cooperative movement was to be come completely independent of private banks. Dr. Renner proposed to mobilize the enormous financial power of the en tire cooperative movement, through the foundation of its own independent co operative bank. Central Cooperative Bank Organized In 1922, the central cooperative bank was established, named "Arbeiter Bank, Vienna." The shares were held only by organizations. According to the statutes of the bank it was prohibited to sell the shares to private persons. Fifty per cent of the shares were held by the coopera tives and 50 per cent by the Trade Unions, which were in close connection with the cooperatives in Austria. Representatives of consumer cooperatives, the whole sale cooperative society, credit unions, the Central League and trade unions were elected to the board. Through this meth od it was guaranteed that the bank would operate only in the interests of the or ganizations which were the founders. Dr Karl Renner became the president of the bank as well as the Wholesale Coopéra tive Society. Surprisingly Favorable Development From the beginning, the development of the bank was surprisingly favorable, even 21 surpassing all the expectations of those connected with its foundation. A few figures will indicate its rapid develop ment. When founded, the bank had a share capital of only about $2,000 and the de posits amounted to only about $100,000. During the first twelve years the share capital of the bank rose to about $800,- 000 and the reserves to nearly $1,200,- 000. The deposits rose to about $14,- 000,000. Every year the bank paid divi dends averaging between 12 and 22% to the share holders, which means the organizations. The cooperatives had the leading positions on the board and had control. Cooperative Movement Became Financially Independent of Private Banks The success of the bank as shown by the above mentioned figures rendered the Austrian cooperative movement inde pendent of private banks. The coopera tive bank repaid all the loans which the consumer cooperatives had made from the private banks before the foundation of the Cooperative Bank. It accumulated the surplus funds of the credit unions, insofar as they were not utilized within the activities of the credit unions; paid jinterest to the credit unions and kept their funds liquid. The bank granted credits to the different cooperatives ac cording to banking principles, after in vestigating the justification of the credits and the possibility of re-payment. They stipulated fixed terms for the re-payment. Cooperative Savings Mobilized In Austria, the consumer cooperatives were allowed by law to accept savings of their members in the different stores. All the savings deposits in the whole country amounted to nearly $8,000,000. It often happened that some of the retail coop eratives received so many savings depos its that a great part of them could not be used within the cooperatives them selves. On the other hand, it was some- 22 times necessary in other places to bor row, as the funds of the cooperative were not sufficient. Through the foundation of a coopera tive bank, the surplus funds were gath ered together and after a thorough in vestigation credit was granted to those cooperatives which were in need of it. Furthermore, through the existence of the bank, there was a guarantee given to the credit unions as well as to the con sumer cooperatives that the savings de posits were liquid. As the central cooperative bank always had an abundance of available funds, it could be of assistance if for some reason great withdrawals were made from sav ings deposits in a consumer cooperative or a credit union. Cooperative Bank Weathers Crisis When Private Banks Collapse The importance of a central coopera tive bank for the whole movement was emphasized in 1931, when the greatest bank of Austria, "Oesterreichische Credit- Anstalt fuer Handel Und Gewerbe" col lapsed and the government had to aid with full guarantee in order to prevent the loss of all the savings deposits of this bank which amounted to more than $400,- 000,000. This bank crash brought about a run of the depositors on the savings deposits in all private and savings banks. Many of these institutions could not stand this run and became insolvent. The cen tral cooperative bank "Arbeiter Bank" through its abundance of liquid capital, was not only able to satisfy fully the de mands but, moreover, during these criti cal days, placed at the disposal of all credit unions and the consumer coopera tives the necessary funds to meet any claims of the depositors of these institu tions. Through this prompt payment the confidence of the depositors was restored at once, and most of them brought their money back within the next few days. This was proved by the fact that even in that year the deposits of the bank con siderably increased. Moreover, there was Consumers' Cooperation a very interesting symptom: after the breakdown of the great banking institu tions individual depositors became dis trustful of all private banks and brought their savings deposits to the Arbeiter Bank. Though these depositors were not members of cooperatives, it accepted their money, and in this way, without any ad vertising, the Cooperative Bank received about $1,800,000 additional deposits. To gain the right idea from these figures, it is necessary to mention that the total pop ulation of Austria was only six million people. In time, these depositors became members of their own accord. Bank Takes Over Installment Credits Another task of the bank was the sep aration of installment purchasing from that of cash purchasing in the consumer cooperatives. At that time, it was the custom of the different retail cooperatives to sell merchandise to their members on installment. This mixture of transactions of cash purchases and installment within the cooperatives had disadvantageous consequences. Therefore, the Arbeiter Bank estab lished a special department which was provided with sufficient funds and had the task, after thorough investigation, to grant credits to those of their members who wanted to buy on credit. This spe cial department made loans which enabled members to buy the merchandise desired in the consumer cooperatives on a cash basis. Thus, in the different cooperatives there were only cash purchasers. The grant ing of the credits and their collecting was done only by this special department. Its establishment proved especially valu able and saved the cooperatives from the losses which they had previously sustained from installment business. Assists in Cooperative Production The bank