The source of this uncorrected OCR text may be viewed in the DjVu format at: http://fax.libs.uga.edu/HD2951xC776/co21 or http://purl.galileo.usg.edu/ugafax/HD2951xC776/co21 CO-OPERATION Formerly " 1 ne Co-operative Consumer PUBLISHED MONTHLY BY 1 ne Co-operative League or America VOLUME VII January—December 1921 CO-OPERATIVE LEAGUE OF AMERICA 2 West 13th Street. New York City 1921 INDEX A PAGE Accounting .......................................................... 47 Advertising .................................................. 183, 186, 191 Air is Clearing ................... ............................. 68 Alanne, Severi ....................................................... 76 Amalgamated Clothing Workers' Commissary Stores. .................. 27 American Bishop Visits Rochdale ..... .......................... 182 Another Fake Goes Smash .............................................. 174 Arden, The Credit Union of .................................. 200 Argentina's Second Co-operative Convention ...... ......... 28 Associated Magazine Useful ............................................ 183 Austria Bankrupt ........................................ 28 Austria, Co-operation in .......... ............................ 189 B Babson, Roger .......... ...................................... 119 Bag of Corn Meal .................................................. 56, 181 Bakeries, Co-operative ............................ . 126, 131, 138, 188, 190 Bakery in Ghent ..... ......................................... 173 Bakery in Hamburg ................................................... 188 Baltic Republic, Co-operation in ................ .................. 150 Baltimore, Md. ...... .............................................. 182 Banking, Co-operative ...............................27, 69, 150, 157, 160, 200 Bankers' Association in Washington .......... .................. 100 Bank, Co-operative, in Cleveland ........... ........................... 150 Bank, Danish Co-operative ..... ........................ .......... 160 Bank, International Co-operative .......... ... ................ 157 Bartlesville, Okla. .............................................. 71 Basle, Switzerland ............................................... 5, 142, 155 Basle Congress, The ................. ... ... .............. 142 Beekman Hill Co-operative Association ................... ............ 135 Belgium, Co-operation in ................. .......... .......... 171 Belgium, Medical Co-operative Society in ................................ 99 Bergenfield, N. J. ..................................................... 168 Berlin, Co-operation in ..................................... 188 Birmingham, England ......... ................................. 100 Bloomington, Illinois ............................................ 58, 65, 166 Book Reviews ............................................ 102, 135, 146, 179 British Co-operation, Impressions of . .................... .......... 190 British Co-operatives Defeat Government ............................. 133, 139 British Co-operative Movement, Growth of ................ - .115, 190 British People's Real Conflict ..... .................................. 18 Brookfield, Missouri ................................................... 46 Brooklyn's Self Governing School ........................ 199 Brunswick, Missouri ................................................... 45 Bubble, Another Co-operative (Boston) .................... .......... 28 Bubnov, J. ............................................. . 150 Business viz Co-operative Failures - ......... ........... 35 INDEX INDEX C PAGE Cafeteria, Our (Co-operative) .......................................... 198 Calendars, Co-operative ................................................ 101 Camden, N. J. ........................................................ 71 Canada, Bank of Levis, ................................................ 69 Canada, Progress in ........................ ..................... 168 Canote, J. W., "How to Meet Competition" ............................... 43 Catholic Priest Endorses Co-operation .................................... 150 Catholic View of Co-operation .................. .................... 83 Central Exchange, Co-operative ......................................... 76 Central States C. W. S. ........................ .23, 35, 78, 104, 151, 180 Chain Stores .................................. .............. 171, 191 Cheel, M. W. ............................................... 56, 93, 162, 195 Chicago, A Sound Co-operative in ........................................ 64 Chicago Co-operative District League ............. ................... 177 Church Endorses Co-operation ....................................... 150, 182 Christmas, Remember ...... ....................................... 200 Cleveland Co-operative Bank ......................................... 27, 150 Coal, Cutting the Price of ........................................... 102, 120 Coal Trust, Bucking the ............................................... 166 Competition, How to Meet .............................................. 43 Constitution for the Socialist Commonwealth .............................. 135 Consumers' Co-operative Societies, Chas. Gide ............................. 179 Consumers Place in Society, Percy Redfern ............ ............... 30 Consumer, The Importance of the ........................................ 53 Convention, Co-operative, on Steamboat ................................. 180 Convention of Co-operative League of Missouri ............ ........... 36 Co-operate, Why Societies Do Not ...................................... 20 Co-operation Supplies the Motive ....................................... 17 Co-operation, True (Poem) .................................. ....... 152 Co-operation Wins in British Parliament ................................. 139 Co-operative Central Exchange .............. ........................... 92 Co-operative League of America, The Work of the ......................... 11 Co-operative Society of America (Fake) .......... .15, 118, 129, 149, 174, 197, 198 Co-operative Stores, .......................... ..................... 15, 16 Co-operative Union of England Conference ................................ 14 Co-operative Union of New York ........................................ 67 Co-operative versus the Unorganized Customer ... .................... 4 Co-operative Wholesale Society, England, Loss in .......................... 186 Co-operators Help Miners ............................................. 98 Cost of Living Rises ............................. .............. 167, 200 Cost, Selling Above ................................................... 8 Course on Co-operative Administration ................................... 51 Course on Co-operative Movement at Columbia ......... ................ 24 Creamery, Franklin, Minneapolis, Minn. .................................. 165 Credit 45 Credit, Hew to Give ................................................ 2, 60 Credit Union of Arden, Delaware ....................................... 200 Credit, When a Co-operative Store May Give .............................. 112 Crissinger, Comptroller ............................. ............... 100 Cross-Country Co-operative Journey ..................................... 162 Croton-on-Hudson, N. Y. .............................................. 88 Crystal Falls, Michigan ................................................ 86 D PAGK Danish Co-operation .................................................. 160 Danville, 111., Gives Third Degree to Promoter ........... .......... 15 Delivery, Cost of ..................................................... 48 Delmar, Delaware ..................................................... 16 Denmark, A Co-operative Commonwealth ............. .................. 102 Difference Between Co-operative and Private Business ...................... 4 Difficulties to be Met ................................................ 93 Directors, Loyalty of ........................ ...................... 19 Direct Trading ....................................................... 73 District Co-operative Leagues ................................... 12, 62, 63, 67 Dividend Hunters ..................................................... 103 Dividends in Chain Stores .............................................. 170 Doctor's Society, A. ................................................... 99 Documents, Amazing "Co-operative" .......... .................... 196 Dresden, Co-operation in . . ........................................... 188 E Education, Co-operative ........................ 45, 60, 76, 85, 86, 103, 104, 199 Education, the Great Need of . ......................................... 104 Eldon, Missouri ....................................................... 46 Eleventh Hour Co-operative Victory .......... ................. 176 Employees 'Store .............. 1 ...................................... 12 Employees in the Co-operative Store ..................................... 110 Engineers' Bank Grows .................... ..................... 65 English Co-operative Wholesale Trade Loss .............................. 186 English Mine Strike ................................................... 98 Erwin, Tennessee ................... ............................ 71, 86 European Impressions .................................... 160, 171, 187, 190 Expansion ......................................................... 8 F Factories, Co-operative, in Germany ..................................... 189 Failures .......................................................... 12,. 35 Failure, Eight Reasons for ............................................... 71 Fake, Another, Goes Smash ............................................. 174 False Co-operation .............................................. 22, 95, 197 Fargo, N. D. ................. .................................... 104 Farmer Co-operators, Real ............................................ 105 Farmers' Co-operative Store ......................................... 134 Farmers' Educational and Co-operative Union ............................. 101 Farmers' Farm Co-operatives .......................................... 87 Farmers' Job, The ................................ ... . . ...... 91 Farmers Make Headway ... ........................................... 103 Farmers Selling Direct at Wilmington, Del. ................. ............. 16 Farmers Union Co-operative Insurance ......... . ... ................ 168 Farmers' Union Endorses Rochdale Co-operation ........................... 101 Federation of Co-operatives ............................................ 20 Festal Palace of Ghent ........................ .............. 172 Fifty Years of Co-operation in Glasgow ................................ 149 Figures, Simple Lesson in .............................................. 200 Figures Showing Increase in Co-operation .... ... ................ 183 Finance, Co-operative High .......................... ................ 21 Finance Your Own Wholesale ......................................... 79 Finland to the Fore ........................ ................. 150 Finnish Co-operative Movement in U. S. ................................. 92 INDEX PAGE Pood Will Win the War ............................................... 27 Foreign News ........................................................ 152 Fourteen Points for Co-operators ........ ............................ 60 France, Co-operation in ................................................ 171 France, Co-operative Reconstruction in .................................. 99 Franklin Co-operative Creamery ...... ................. .74, 82, 185 Fraternal Co-operation ................................................ 125 Freidorf (Free Village), Switzerland ..................................... 5 French College Teaches Co-operation .......... .............. 29 French Co-operation ................................................... 145 Fun in the Co-operative Movement ..................................... 80 G Galveston, Texas . . ... ...... .................................. 104 Gassaway, W. Va. .................................................... 120 German Co-operators .................................................. 13 Germany, Co-operation in . - ..................................... 187 Gide, Chas. ......................................................-29, 179 Glasgow, Scotland .................................................... 149 Glenmorgan, W. Va. ........... ........................ 120 Glynn System .................................................. 66, 95, 167 Grange Warehouse in Seattle ........................................ 73, 82 Greece, State Aid in ....................... ... ............. 99 H Hall, Bolton ...................................................... 57 Hamburg, Co-operation in ............................................. 188 Hannibal, Missouri ......... ................................. 43 Harding, President ................................................... 123 Hard Times .......................................................... 1 Harmony With Profit Business ..-.-. ................................. 79 Harris, Emerson P. ................................................ 185, 190 Hat Factory, Co-operative ............................................. 29 Herron, L. S. .................... ...... .......................... 96 Holland, Co-operation in ............................................... 171 Hornell, N. Y. ........................................................ 10 Housing, Co-operative ............ ... .................... 5, 135, 188 Howe, Frederic C. ..................................................... 102 Hungary, Co-operation in ............................................ 29, 137 Hyndman, H. M. ................. ................... 133 [ Income Tax Advice ...... ...... ........................... - ... 24 Incorporation .......................................... ........... 52, 62 Insurance at Cost ..... .............................................. 168 Insurance, Co-operative Group .......................................... 81 International Co-operation ............................................. 157 International Co-operative Congress ............... .115, 142, 154, 155, 180, 192 International Delegate's Report ......................................... 180 International Organization of Women ................................... 192 International Summer School .......................................... 152 Intermountain Co-operative Association .................................. 87 Irish Co-operative Victims .............................. ... ........ 13 J Jaeggi, B. .......................................................... 5 Jewish Co-operation ................................................... 125 Joplin, Mo. . . .......... .......................................... 85 INDEX K PAGE Kaufman, Heinrich ..................................... ............. 187 Kinning Park Co-operative Society ....................................... 149 Kresge Stores ............... ...................................... 170 L Labor and Co-operation ................................................ 110 Labor Knaves and Dupes .............................................. 34 Labor Movement in England ........................................... 14 Labor Party, The .................................... 122 Labor Resolutions ..................................................... 118 Labor Temple at Nashville, Tenn. ...................... ............. 26 Land, Co-operation in ................................................. 57 Landis, Judge, Ruling in C. S. A. Case . ................................. 149 Laundries, Co-operative ............................................ .25, 165 Law, Federal Co-operative ............................................ 24 Laws Which Obstruct Co-operation ............. 127 Lauck, W. Jett ........................................ ... ........ 140 League of Nations, The Real .......................................... 154 Leavenworth, Washington ............................................. 65 Leeds, England, Co-operative Society in ...................... ......... 192 Legislation, Co-operative ........................................... 123, 127 Lehighton, Pa. .................. ................................9, 166 Levis, Quebec, Co-operative Bank ....................................... 69 Lewiston, Idaho ...................................................... 31 Lexington, Mo. ....................................................... 49 Lithuanian Co-operative Movement in U. S. .......................... 23 Life, Not Labor ..................................................... 53 Loan Capital ......................... ............................... 47 Long, Cedric ............................................... . . .95, 176 Loss and Its Lessons, A. ............................................. 12, 182 Loss, C. W. S., England ............ .................................. 186 Loyalty of Directors, The ................................... 19 Loyalty of Members .................................................. 93 Lysaght, Edward, Irish Leader .... .............................. 13 M Manager Overbuys, The ............................................... 3 Manager, The Successful ........ ..................................... 55 Managers, Co-operative, Conference, Wisconsin .............. .......... 84 Marceline, Missouri ................................................... 48 Medical Co-operation in Belgium ... ............................... 99 Medical Service, Co-operative ............................... ...... 52, 85 Medical Service of Workmens' Circle .................................... 125 Melting Pot, The ................... ........................... 10 Members, How to Get ................................................ 60 Menominie, Wisconsin ................................................. 134 Meyer, Ulrich ........................................................ 5 Milford, N. H. ....................................................... 87 Milk Distribution, Co-operative ....................... .33, 64, 75, 165, 182, 185 Milk Distribution in England ........................................... 100 Milk, Pure ................................................ ......... 82 Miller, "300 per cent" ................................................. 21 Milwaukee, Co-operation in ......................................... 132, 180 Miners Lockout and Co-operation ...................................... 184 Miners' Strike ........................................................ 98 INDEX PAGE Minersville, Ohio. ........................••••••-•••••••-••••••••-••••• '1 Missouri, Co-operation in ..........................•-••.••••---•-•••••• 36 Mobile, Alabama ............................-....•••••••••-••-••••••• 3] Modern Social Movements ................................••••••••-•••• 179 Momence, Illinois ......................-.....•••-.•••••••••••--••••••• 198 Monett, Missouri .................................••••••••••••••----•• 49 Money, Workers' ......................••..•-•••••••••••-••••••••••••• 90 Montgomery, W. Va. ...........-...........-•••••-•••-•••-••••-•••• • • 87 Motive of Co-operation .......................-....••••••••••-••:•••••• 17 Mount Olive, Illinois .....................................••••••••-•••• 1°3 Municipalization or Co-operation ........ ................-....-.•••••••• 33 N Nashville, Tennessee ..............................•••••••••••••••-•••• 1° Nationalities in Soo Society ..................................•••••••••- 1° National Co-operative Association ................................. 10, 23, 198 Nebraskan Farmers' Union Exchange .................................... 96 Need for Co-operation .............................-••••••••••••••••••• 14° Nelson, Arvid .........................•••••••••••-•-••••--•--••-••••• 92 New England District Convention ....................................... 51 New Jersey District League .......................................... 58, 63 Newport, R. I. .................................. ........ 183 New York City Co-operative Union ..................................... 67 O Ohio District League ................................................. 12, 134 Organizers, Paid ................................-•••••.••••••-••••• 10, 197 Organizer, Warning Against ...........-.....................•-•.••••••• 25 P Pacific Co-operative League ............................................ 196 Paducah, Kentucky .................................................. 120 Paris Letter from J. P. Warbasse ..................................... 145 Parker, Harrison M. .............................••••••••••••••••••••• 15 Paterson, N. J., Bakery ............................................... 138 Patterson, Geo. R. (Report) ........................................... 37 Picnic, Co-operative ........... ....................................... 134 Poem, True Co-operation ..........................-••••..••..•••••••••• 152 Poland, Co-operation in .... ..................... .......... 152 Political Action .............................-•..•••••••••--•-•••••••• 123 Political Policy of Co-operators ......................................... 14 Portage, Pennsylvania ............................ • • • ....... 88 Practical Course ......................-.-..----•-•--•-•••-•••-••••••.• 86 Price The People Pay ............................................... 35 Printing, Co-operative, in Germany . . .................................. 187 Problems, How to Meet ............................•-•.-.••.•••••••••••• 93 Producer and Consumer ............................................... 73 Producers Co-operation ........... ...... ..... .29, 91 Producers' Co-operative Industries .................................... 17, 53 Producing for Others' Profit .......................................... 101 "Produktion" ....... ... ...... .......... .......... 188 Profiteering ......................................-•.•••-••.•-••••••.• 140 Profits as Loans ................................•.-••-•..•.•••••.•.•• 74 Profits or Savings-Returns ... ... 48 Proxy Voting ............,................•.....•-•••••••••••••••••• 128 Publications, New ..............................•••••••••••••••----•••• 10 Public Opinion ..... ...... .119 INDEX R PAGE Rappaport, H. ................................. .................. 124, '174 Reading, Pennsylvania .............................................. 56, 181 Recreations .......................................................... 80 Redfern, Percy (Book Review) .......................................... 30 Reiner, Rev. Joseph ................................................... 150 Renner, Karl ........................................................ 189 Report of Secretary Missouri League .................................... 39 Report of W. J. Lauck ................................................ 140 Restaurant, Co-operative ............................................... 198 Resolutions, Labor, Missouri ............................................ 118 Results of Rightous Indignation ......................................... 9 Rockford, Illinois ..................................................... 15 Rolefield, Montana ................................................... 72 Roseland, Co-operative Association ...................................... 64 Russia and the Co-operators ......................................... 81, 151 Russian Co-operative Movement ........................................ 137 Ryan, Rev. John A, .................................................. 83 S St. Louis, Missouri................................................... 120 St. Paul C. W. S. ......................................... .........67, 198 Salesmen Unnecessary ................................................ 3 San Bernardino, California ............................................ 165 Sault Ste Marie, Mich. .............................................. 10, 71 Sayre, Pennsylvania .................................................. 32 School, Self Governing ................................................. 199 School, Summer .............................. ....................... 76 Scotch Co-operation .................................................. 149 Scranton, Pennsylvania ................................................ 16 Seattle, Washington .................................................. 32 Selling at Cost ....................................................... 8 Shanks, Roy ......................................................... 15 Shaw, George B. ..................................................... 99 Ships That Passed in the Night ........................................ 197 Single Tax .......................................................... 57 Small Beginnings .................................................... 56 Social Interpretation of History ......................................... 147 Socialism and Co-operation ..................................... 83, 122, 147 Socialist Commonwealth Constitution ..................................... 135 Socialist Endorses Co-operation ......................................... 133 Socialists of Belgium ................................................. 172 Sonnichsen, Albert ............................... .112, 123, 137, 154, 169, 185 Spain, Co-operation in ................................................ 152 Statement of Ownership ............................................ 88, 184 Staunton, Illinois. Report ............................................. 66 Store Problems ...................................................... 93 Store, Do Not Destroy the .............................................. 2 Storm, How to Weather the ........................................... 78 Strike, Railroad ...................................................... 169 Strikers Open Co-operative Stores ...................................... 27 Study Club .......................................................... 84 Success Following a Failure ...................................... . . 9, 15 Suggestions, Practical . . .2, 3, 8, 20, 43, 45, 47, 48, 50, 60, 93, 102, 112, 166,' ISs', 195 Switzerland's President Praises Co-operation .............................. 182 Switzerland, A Co-operative Village in .............. ................ ... 5 Symbol, Reward for ............ ................................... .50, 184 INDEX r f PAGE Taxation .................. ............. ............. 75, 107, 123, 139 Taxation, Indirect .................................................... 123 Taxation in England .................... ............................. 139 Taxidermists to Skin the People ........................................ 107 Texas, A Fertile Field .......... .................................... 103 Theatre, Co-operative, A .............................................. 70 Tombstone, Another ................................................... 95 Totomiantz, V. ....................................................... 146 Tousley, E. M. ...... ............................................ 72 Trade Unions Congress ................................... ...... 184 Trade Unionism in Co-operative Stores .............................. .110, 187 Trade Unionists and Co-operators .................. .............. 156 Training School for Managers .......................................... 151 Training School for Workers ............................................ 24 Tri-State Co-operative Wholesale ....................................... 14 Trimming Sail ....................................................... 195 Trust, Declaration of ................................................. 129 U Unemployment ....................................... ........ 1, 106 Unemployment Conference ............................................. 170 Unions Use Co-operative Store ................. .................. 70 United Consumers' of Buffalo ........................................ 95, 167 United States, Co-operative Stores in . ............................. 162 Utica Co-operative Society ........................................ 104, 199 V Valdese, N. C. ........................................... ..... 72 Vienna, Co-operation in ................................................ 190 Villa Grove, Illinois ................................. ............. 120, 167 Vital Issues .................... 1, 17, 33, 53, 73, 91, 105, 123, 137, 154, 169, 185 Volharding, De ......................... ............................ 52 W Walker, John H. .. ^.......... .................................... 78 Warbasse, A. D. ..................................................110, 192 Warbasse, J. P. .......... .1, 8, 17, 33, 53, 73, 91, 105, 114, 127,155, 160 171, 187 Warning, A ......................................................... 51 Washington, D. C., Store Failure ......... ....................... 12 Washoe, Montana ..................................................... 88 Watch the Back Door, Too .............................................. 114 Webb, Sidney and Beatrice ......... ................................. 135 West Englewood, Chicago, Society ........................ ....... 177 What Are Others to Do? .............................................. 1 Where is the Workers' Money Safe? ................................... 90 Who Gets the Seventeen Per Cent? ...................................... 102 Wholesale Co-operative ...................................... 78, 79, 92, 186 Wholesale Co-operative in Germany ..................................... 188 Wholesale, French, Co-operative ........................................ 145 Wholesales, Sound ............................ ........... ........ 61 Wholesales, Unsound .................................................. 68 William, Maurice - ................................................. 147 Window Posters .............. ................................... 50 Wirkkula, Adolph .................................................... 20 Women Co-operators of All Lands Unite .................................. 192 Women's Guilds .... .......................................... 31, 194 Word and Symbol ..................... ...................... 50, 184 Workers' Status in Co-operative Movement ... . . ... ................ 110 Workmen's Circle, The .............................................85, 124 Z Zimand, Savel ........................................................ 179 CO-OPERATION A magazine to spread the knowledge of means whereby the people, in voluntary organization, produce and distribute for their own use the things they need "J-J JAMES PETER WARBASSE, Editor. ~ VOL. VII. JANUARY, 1921 I L\ No. VITAL ISSUES WHAT ARE THE OTHERS TO DO? A little boy said to his father, who was a clergyman, "You say that we are to help others?" "Yes, my son, we are to help others." "Then," said the little- boy, "what are the others to do?" The good puritan has never been much concerned about what these others should do; he has been chiefly concerned about what he should do to them; and he has always known that the thing he was to do to them was to help them. Next comes the more highly ethi cal mind which declares that he has a job for the others as well as for himself: the others are to help him, because it will be good for them; and he will help them because it will be good for him. So there we are all fixed up and adjusted like a walking beam— A push and a pull, A pull and a push, And the boat goes moving on. Then the modern man of affairs, who arrives with his superefficiency, has a labor-saving formula. He says, "That is all very good, I ap prove of it! I should help others and others should help me. But I will save the others the trouble, I will help myself." So he calls it square at that and goes directly at it—and helps himself. The co-operative idea is quite apart from these schemes of self- help and other-help. We co-oper ators do not moralize. We repre sent self-interest refined; and self- interest is the greatest driving force in the world. The doctrine of the co-operator is that he should help himself, it is true, but in Co-opera tion, the only way he can do it is by helping others. He joins his co operative society to improve his con dition, to get more things and to get better things than he could get alone. But he can get no advantage out of his society unless everybody else in it gets advantage out of it also. So he works to make it suc ceed so that he can get better things. And the harder he works and the better things he gets, the better are the things that the others get. And the more earnestly the others work to make it succeed so that they can get better things for themselves, the better things he gets. Then he dis covers that he is working with his fellow men for the advantage of all, and he is lifted into a new joy in the light of this revelation of kinship and mutual interest. And the others discover him as their brother. And they who have come in out of the world of bitterness and struggle are made as one. HARD TIMES For the past year we have called attention to the fact that hard times and unemployment are a part of the price the people must pay for main taining the present system of pri vilege. If we have a system which supports a class of people who live by the labor of others, we must count on the economic upsets which go with it. Since the major ity of people evidently do not ob ject to continuing this sort of thing, the rest of us must make the best of it. Now hard times are approaching. They could be obviated easily CO-OPERATION CO-OPERATION enough. One part of the world is hungry and wants food; another part of the world has an abundance of foodstuff and needs goods. Rus sia has raw material in excess, Rus sian farmers are burying their grain; and the Russians will pay any price for manufactured goods. In Austria and Hungary the mills and factories are closed, the people are out of work and dying of starvation. The allied nations are responsible. In the United States we are to have unemployment because British im perialism, French finance, and American industry demand it. The ninety-five per cent, of the people who have to do the suffering will have little voice in the matter. Members of co-operative societies will find themselves out of work in increasing numbers. They will need money—and need it badly. Already word is coming in from places where societies exist, "the mills are closed and most of the members of the so ciety are out of work"; "the mine is shut down and the members are asking for credit"; "most of the members have been laid off and are beginning to withdraw their share capital." This is serious business. The trou ble has only just begun. American privileged interests want to see the workers in bread lines; and it is going to see them there. The hun gry babes of working women ap peal to them no more than do the starving children of Europe. They will be given charity, but not jus tice: justice is too expensive. DO NOT DESTROY THE STORE In this unemployment situation Co-operation has a duty which is clear and should be well under stood. In the first place we should have known what is coming. So cieties should have been built strong and substantial. A good re serve should have been created wherever possible. Too much money has been paid out in savings-returns which might better have been held in reserve. Societies should have planned to place themselves in such a position that they could actually give credit. This should be accom plished by building up a reserve from the surplus-savings. Members should have put in loan capital also. Thousands of members of co-oper ative societies have been using money during the past six years which might more wisely have been left with the society against a rainy day. Each society should have re quired from each member a sub stantial contribution to a credit fund. Such a fund should now be available to trade against. All of these things should have been done in societies in which the members are watching their organization and working for it as true co-operators. But whatever should have been done in the past, there is one thing that should not be done now: share capital should not be withdrawn. If one member may withdraw his share capital, every other member has the same privilege. And if every member, or any considerable pro portion of the members withdraw, the society is destroyed. The little money that the mem ber has in "the store" will not do him much good when he takes it and spends it in the competitive store or gives it to the landlord. When it is spent it is gone forever. It may postpone being without something for a few days, it may postpone evic tion for a few days, but when it has been put into the great stream of money that moves on toward Wall Street it is gone and it will stay gone. The same need for it will come back again and again. But that precious money that was taken out of "the store" can be spent but once. Leave the money in "the store." Let the suffering be a few days longer. It hurts, but it is worth it. If you take out your little share cap ital the doors will have to be closed, and then you are absolutely at the mercy of the forces that have driven you to unemployment. They are the very forces that drove you to "give till it hurt" and to "buy till it hurt," to keep their killing game going. Now, save "the store" till it hurts for the sake of the living—for the sake of the workers and their chil dren. THE MANAGER OVERBUYS "We have enough shoe polish to blacken all the shoes in Pittsburgh for the next ten years," is what they said of a society in western Penn sylvania. A society in Illinois had enough bottled olives to last them until the year 1967, at the rate they were selling. Enough clothes' pins were found in the possession of an other society to hang out the wash of the whole state of Michigan. When sugar was retailing at 18 cents, I saw $4,500 worth of sugar piled in the basement of a co-oper ative store in Canada that had cost 26 cents a pound. A store in Ohio had enough matches to start all the fires in the state for the next five years. Now let us look at the other side of the matter. In some of the mag azines read by business men and clerks are seen a significant kind of advertisement. It concerns the se cret of salesmanship. This is the way it is done: "He learned this wonderful secret of selling and how to use it. The very first day he put it into practice his sales began jump ing. He could hardly believe it. Other firms heard of his astonishing ability—and began bidding for his services. His own firm gave him raise after raise in pay in order to keep him." The above is from an advertise ment of a method which teaches one how to be a "supersalesman." It is by "the greatest living authority on salesmanship." Where this method is mastered the salesman is sup posed to be able to go anywhere and sell most anything." "A good sales man can name his own salary," the advertisement says. A successful business magnate is made to say, "young man, my advice is to get into the selling end of the game. There is where the money is." "My New Way of Selling," "How I Learned the One Great Secret of Salesman ship," "In the last nine weeks my sales have topped the list," these are some of the things that do the trick. The finished product of the course in smart salesmanship comes into the co-operative store and meets the manager. What chance has he—a simple, honest manager against such a fellow? The average store man ager has not had any training to counteract that of the smart sales man. The only things that can save him are common sense and back bone. Unfortunately many a store manager lacks one or the other of these. Three or four salesmen com ing in every day—sometimes half a dozen or more—are sufficient to wear out his resistance. They are like a bunch of secret service men giving an innocent victim the "third degree." The manager is good natured. He does not realize that these nice af fable salesmen are "experts" op erating on him. Their talk has all of the unctuous loveliness of a col lege president turned politician. But as a matter of fact they would load him up with white elephant's meat and pickled Hindu idols, take every cent his society had, and leave him hung up by the heels if he would let them. And the pathetic fact is that a lot of our store managers do let them. Many of these store managers are just ordinary weak human beings. A few fall for the crooked wiles of the smart salesman and accept the box of cigars and the commission, and thus become crooks themselves. Some few possibly look forward to the failure of the store so that they can run it as their private business. Fortunately, the majority of store managers in the United States are upstanding men with common sense and backbone. They are the hope CO-OPERATION CO-OPERATION of the store. But for the good of our movement we need training schools for store managers where they can be taught the lessons neces sary for the protection of the store and for the success of its administra tion. While we are planning for such schools in the future, at least managers should go ahead and se cure all the instruction they can through the printed word. THE CO-OPERATIVE VERSUS THE UNORGANIZED CUSTOMER There are many tests which may be applied to the co-operative prin ciple to prove its soundness. The first and most natural test is that which contrasts the co-operative consumer with the casual customer, consumer, non-owner of industry. In the first, the owners are the consumers, and the industry is car ried on wholly for them. It was their money that started it, and any profit or advantage accruing from the industry is theirs. .Customers who also own the business are jeal ous of its success. Pride in the en terprise is for its patrons. And it is the patrons who make a business. In fact they are the business. All business is addressed to them. In the co-operativte business the ob jects of business interest, the cus tomers who sustain it, are the very ones who run it and are responsible for it. Where proprietor, manage ment, and customers are one and the same the ultimate simplification of business has been attained. Busi ness then ceases to be business; it becomes production or other activ ity for the purpose of service. It posseses the simple and primi tive character of doing things to supply a need. It enlarges the family garden, in which was pro duced the family food, into a larger social organism. When the co-operative store is not succeeding or is threatened with disaster there is a whole mass or a hive anxious to protect and save it. Owner and patron are willing to make sacrifices in its interest. How different is the situation with the private enterprises! In them the owners are not the customers. The industry is carried on in the in terest of the owner only. The one is arrayed against the many, each desiring to get a little something the better of the other. Only the own er's money is at stake, and the profit is the owner's. None but the owner is jealous of the success of the busi ness. Pride in the enterprise is not for those to whom it caters, but for the owner who is only the caterer. The owner as he makes his plans, cogitates upon how he may make more money out of the consumers. Since the business is not run by the people to whom it caters, but is run by another to make money out of their patronage, it is not to serve them but another. When the pri vate store is not succeeding or is threatened with disaster its only protector is the solitary owner. Not the patrons, but only the owner has the anxiety and is willing to make the sacrifices to save it. The co-operative store is a social unit made up of many individuals with one main interest; the private store is a dual enterprise divided between two interests which are fundamentally antagonistic. People have no motive to cheat themselves; it is the other who cheats them. People have every motive to help themselves; the best help the other gets must come likewise from him self. In the co-operative store the masters serve the masters; in the private store the masters of the sit uation are served by the one who risks all and is himself a slave. The consumers are everybody. When they organize co-operatively to produce and distribute for them selves, the world is theirs. J. P. W. ORIGINAL ARTICLES A CO-OPERATIVE VILLAGE IN SWITZERLAND By ULEICH MEYER, Basel, Switzerland Among the most interesting solu tions of the housing problem may be counted the settlement "Freidorf" (Free village) in Basel. The at tempt will be made here to describe to our friends in the great, sister republic across the seas the forma tion and organization of this colony. Among the staff of the Swiss Union of Co-operative Societies, amounting to about 800 persons, the wish had long existed that the union, which had already set up so many beneficiary institutions, should also act in an energetic manner in the domain of the housing question. When the Union of Swiss Co-opera tive Societies was called upon to place at the disposal of the Govern ment its reserve and surplus funds, accumulated during the war, a great plan took tangible shape in the in ventive mind of Mr. Jaeggi, the president of the union. These funds, instead of being permitted to get lost in the bottomless abyss of the treasury of the Swiss Government, should be saved and used instead for a permanent and brilliant work, the foundation of a dwelling colony on a purely co-operative basis. In view of the fact that the Government had been petitioned from all sides to help relieve the scarcity of dwell ings it could not withhold giving its consent, and Mr. Jaeggi succeeded in obtaining the permission of the authorities that an amount of 7% million francs, instead of being paid as war tax, could be used for the foundation of the settlement "Frei dorf." In the meantime Mr. Jaeggi had found out that in the neighborhood of Basel an allotment was for sale. It consists of approximately twenty acres and was bought at a compa ratively cheap price. Well re nowned architects were invited to work out plans for the construction. On May 20, 1919, the foundation of the society "Freidorf" followed. The by-laws determined the aim of the society as follows: The further ance of the social welfare and the amelioration of the standards of liv ing of its members. Only persons intending to live in the settlement may become members of the society. Members are bound to subscribe to at least one share of a hundred francs. Any speculation with buildings or ground is excluded. For the present the dwellings are only leased to the members. The lease, however, is irrevocable and ends only with the discontinuance of membership un less, of course, the member makes himself guilty of gross neglect of his duties. In case of death of a member, the membership may be continued by an heir; therefore, every member pos sesses a real home. Out of the submitted plans the settlers, in common agreement, chose the plan that had been worked out by a young architect, who was thereupon appointed su perintending architect of the so ciety. On November 1, 1919, the ex cavating work was started, the greater part of the colony was ready for inhabitation in October of the following year. The colony comprises 150 one- family houses of 4, 5 or 6 rooms. Two hundred square meters of land at least belong to every house. There are nine rows of houses with groups of 2, 4, 8 and 14 build ings in each group. We shall try to describe these, by choosing for our description the smallest type of house, as the most frequent (110 houses out of 150). All buildings are constructed of brick; the cellars occupy the same square space as the upper floors. CO-OPERATION CO-OPERATION The basement consists of three sub divided rooms: The laundry, a room suitable to be turned into a work shop, the real cellar room, and a small ante-room with the cellar stairs. The laundry is fitted with a first-grade washing stove, a tray and a hot-water container boiler, with a ready supply of about 53 gallons of hot water for the use of the laun dry, the kitchen and the bath-room. The water is heated by electricity at night time. This container is al ways filled with hot water. Cold water enters automatically as soon as some hot has been used, also the electric current is connected and switched off automatically. Pipes containing hot and cold water sup ply the rooms in the floors above. The first floor consists of three rooms—namely, kitchen, dining room and living room. The kitchens are well lighted by means of a glass door leading into the garden and a window. Door and window are pro tected by lattice-blinds, whereas the other window-openings are supplied with Venetian blinds. In the kitchen, a cook stove heated with wood or coal as well as an electrical cooking apparatus are installed. Connected with the kitchen is the dining room which is provided with a homely stove made of glazed tiles. It is heated by the kitchen range, but has also its own fireplace and an oven-mouth wherein the wife may keep hot the husband's dinner if the latter is detained by meetings from coming home. Beside the large window, closets are built in the wall; underneath it, is a larder. Ascending the comfortable stair case to the upper floor we reach a small landing. From this a door leads to a big bedroom (12x18 ft.) which upon request is divided into two smaller rooms. At its side is located another bedroom (10%xl5 ft.) with a spacious wardrobe built in the wall. A second door from the landing leads into the bathroom which is fitted with built-in bath tub and enamel wash basin, both with hot and cold water. The toilet is in the same room; also here a closet has been fitted in. From the larger-sized living room a staircase leads to the spacious at tic within which in most houses a top-room has been built on request at an additional price of 50 francs yearly. Whoever does not find suf ficient space for the accommoda tion of his belongings has a further floor-space above the attic at his disposal. In the porch and kitchen a "Ter- razzo" flooring, easily to be cleaned, has been made, whereas in both rooms of the ground floor a much more complicated layer is used for flooring. First, there is the strong cellar ceiling made of hollow tiles and reinforced concrete, then a layer of cinder castings of 1 1/5 inch thickness, on this a wood com position of the same thickness, then a layer of felt, and lastly clean linoleum. Not many houses are built where strong construction and protection against cold feet are so carefully combined. The floors of the bedrooms are made of oak, and the bath room floor of Terrazzo flooring. All rooms in the house are lighted by electricity. This is, in brief outline, the in terior arrangement of the houses of the colony. On the garden side of the houses a glass-covered projecting roof is made. At the same time the roof protects the kitchen and cellar stairs. On this side is also situated the liquid manure container that is indispensable for efficient garden ing. It is constructed in such man ner that a possible "surplus" flows through the draining into the near by river. Most of the houses have gardens in front and at the back, the front- side of others is separated from the village road by at least a streak of turf. All roads of the colony are destined for its own traffic; the pub lic road passing at the side of the village and not through it. A sta- tiontion of the railroad is situated at the side of colony. The rent paid by the settlers is small in comparison to that which is paid at the present time for hired lodgings, it amounts to 850 francs a year for the above described small est houses, 1,100-1,200 and 1,600 francs for the somewhat larger houses. The inhabitants of Freidorf not only provide their housing needs, but they manage in common the pro viding of all necessities. With this end in view a large building is con structed in the center of the village, with shops for foodstuffs of all kinds, boots, manufactured goods, and haberdashery stores. An elementary school consisting of three classes is installed in the building, also a restaurant, a hall for meetings and a library. The colony is bordered with and crossed by avenues of walnut trees along the public road, of cherry trees along both sides of the tri angle, and different kinds of fruit trees along the village roads. The members of the "Freidorf" actively participate in the adminis tration. Seven committees are ap pointed of which the Committee on Education is the most important. For the time being its program con tains among others the following points: Installation of a library and of a reading room, the organization of lectures and courses regarding the co-operative system in general, health questions, exchange of goods, gardening, preserving of fruits and vegetables, and also the raising of a relief fund. Beside the Committee on Educa tion the following exist: The Board of Health for the organization of the care of the sick, the manage ment of the household, and the ar ranging of lectures on these sub jects; a Board of Management, whose duty is to prepare all ques tions having to do with the manage ment of all commonly-owned prop erties of the colony; a Board of Con struction; a Finance Committee; an Entertainment Committee for the culture of social life in the colony; and a Board of Safety, organizing a fire brigade, cleaning of the roads, removal of the rubbish and the maintenance of public safety. At present 35 members are oc- various boards. It is planned, how ever, to get every member of the colony as well as the grown-up members of his family to co-operate whenever possible in the work of one of these boards. The work done in this connection is naturally not paid. It is consid ered a honorary duty for every member to place his special capabil ities at the disposal of the whole community without demanding pay ment. The members of the manag ing committee also are not paid. Thus the settlement society "Frei dorf" returns to the Rochdale prin ciples of serving each other instead of working for payment. The by laws require cash business. We expect from the society "Frei dorf" that it will act fruitfully in many ways on the whole Swiss co operative movement. The living to gether of persons of the Union of all social standings (the President of the Managing Committee, propa gandists of the Union, employees of the offices, and workmen of the manufacturing plants) will no doubt exercise an influence on the spirit of the colony; but especially the strict application of the co-operative principles among all of these mem bers will not fail to exercise its favorable influence on the whole movement. May the expectations that are placed in this colony be fulfilled; then the "Freidorf" will soon hold a place of honor in the co-operative life of the world and will be one of the attractions of the International Co-operative Congress that will be held at Basel next August. CO-OPERATION CO-OPERATION WHY NOT SELL AT COST? By J. P. WAEBASSE The Rochdale Pioneers were usu ally right. They sold their goods at a price sufficiently above cost to give a profit, and they had a good reason for so doing. But in these latter days conditions have so changed we must have our own reasons for our practices. The first reason for selling at the prevalent retail price is to avoid the immediate hostility of the private merchants. This is a serious thing because if their fear is at once ex cited they may join with one an other and with their ally, the board of trade or the chamber of com merce, and invent a scheme for de stroying the co-operative store. Moreover, it is easier to mark goods the regular price. To attempt selling at cost, plus overhead ex pense, introduces the problematical calculation as to the cost of the over head. Just where to fix this figure no new store can tell. If enough is not added it will be found that the store is losing money. The more that is added for overhead the safer is the margin; and the maximum safety limit is the prevalent retail price. The fundamental reason for sell ing at profit is that a co-operative society must have capital. The best way to get it is to earn it. By selling at the prevalent prices the society puts into the treasury the profit which the private merchant puts into his pocket. No co-operative society is worthy of the name if it is not thinking about expansion. A society with a grocery store must be planning to add a meat market, then dry goods, then a bakery, then a laundry, and so on. The society must always have in mind raising the money for rec reation and other social purposes. And then a reserve fund should be developed to unite with other socie ties in the wholesale. No co-operative society should ever acknowledge that it has reached the limits of its expansion until it conducts every business in the community and is united with other societies which are doing the same thing. Co-operation needs capital for expansion; and it should aim to keep on expanding until it has solved the world's economic problem and the co-operative com monwealth is attained. Expansion and expansion and al ways expansion must be the purpose of the co-operative society. The group of people who organize to run a store to save themselves money, and have no vision beyond that, may succeed in running a cheap store, but they are not running a co-op erative society. It is to earn the money for expansion that collective capital should be developed by sell ing at the price which gives the pri vate merchant a profit. Experience shows that it is better thus to earn it than to borrow it. This method also makes it pos sible to pay savings-returns among societies whose membership have not fully caught the larger vision of Co-operation and want to have back some of the surplus-savings as cash in hand. This is the appeal of cash returns. But no society which pays savings-returns can afford not to set aside a certain percentage of its sur plus-savings for purposes of a re serve fund and for education. This must be done by selling above cost. More important than savings-re turns is the use of the money for social purposes, as practised by the Belgians. Unemployment insurance, sick benefits, medical care, old-age pensions, mothers' subsidies, and community houses for purposes of recreation and education are some of the social enterprises which can be carried on only by developing re serve funds out of the surplus-sav ings. A final reason for selling above cost is that societies which do not do this fail. Without the capacity for expansion, without the tangible evi dence of savings, excepting those of a cheap store, without the strength ening power of a reserve fund, they lack cohesion. The members de velop the feeling that they are run ning a cheap store, and presently they will shop elsewhere if goods can be found at a still cheaper price. It is a great thing for a group of people, who have worked together, to have a fund which their efforts have created, and which they may discuss as to how it shall be used to best serve them. This in itself promotes solidarity and has enorm ous educational volue. Only when capitalistic business has been eliminated and the people are employed in co-operative industry will it be safe to sell at cost. RESULTS OF RIGHTEOUS INDIGNATION There is an old doctrine that where a co-operative society has failed another society cannot suc ceed for a generation. This seems to hold pretty true. There are many places in the United States where it seems impossible to start a so ciety, because as soon as somebody suggests such an organization one of the old-timers reminds him that they once tried it, and so-and-so put in so much and so-and-so put in so much, and they all lost their money, and there is nothing in it, or it won't work here, or something of that sort; and until the generation that had the bad experience has gone, every effort to start another society is discouraged. If people have lost their $5 or $10—a small amount—and the store gradually failed from lack of education or from mismanagement, even with help and good wishes from every side, the case seems hopeless. But there are peculiar ex ceptions. The exceptional cases are those in which the discouragement was great, in which the people each lost $50 and $100 and more, and in which there never was a pos sibility of success from the begin ning. In some of these latter cases the people started a new society and made it succeed. At Perth Amboy, N. J., organizers of an utterly hopeless scheme came in and organized a society. The organizers and their officials hum bugged these people, lied to them, subjected them to the grossest sort of fraud, and then left them with a loss of $9,000 out of the $12,000 capital which they had raised. The people who were "organized" were simple, honest, unsuspecting work ing people who thought that those who called themselves "co-operat ors" were at least truthful if noth ing more. But when they found that they had been betrayed and their store was bankrupt, instead of being discouraged, they made it their business to find out what real co-operation is. And then, in their indignation, not to acknowledge defeat, they organized a new so ciety, went down in their pockets and brought up more money, and into the new society they have put a vigor and a will to succeed that commands attention. Righteous in dignation saved them. A similar thing occurred at Le- highton, Pa. These people were "or ganized" by the same company that "organized" Perth Amboy. The "organizers" began by warning them against the Co-operative League of America. These honest and credulous railroad men actually were made to believe that the League was composed of vicious people who would purposely lead them to destruction. When they found that they had lost $7,000 of the $11,000 which they had paid in, that they had been lied to, buncoed and bankrupt, and when they found that the reason they had been warned against the League was be cause of the very fact that it would have given them sound advice, these railroaders were so mad that they resolved not to stay beaten. They 10 CO-OPERATION CO-OPERATION 11 unlearned the old lessons, got cor rect information, put up some more money, and started a new society. Righteous indignation at having been duped was their inspiration. At Hornell, N. Y., a co-operative "organizing" outfit appeared upon the scene, filled the people full of overwrought enthusiasm, took their money, and opened a store for them. The manager whom the "organizer" put in disappeared and with him not only the cash, but all the goods on the shelves—literally carted off one dark night. The members of the society lost their money and had on their hands an empty store and the unpaid bills. Four years later, slowly and carefully they went at it again. They did educational work, and organized on an abso lutely sound basis. When the Na tional Co-operative Association pro posed to "organize" them they ad vised that association to keep out of their town. They had had enough of "organizers." And they now have a safe and substantial home-made society. Righteous indignation at their gullibility and the purpose to show themselves at least that they were not discouraged spurred them on. At Nashville, Tenn., a noisy 100 per cent, patriot, by the name of Da- vis, organized the railroad men into a society with $18,000 capital. He warned them against the League as a dangerous, unpatriotic and bol shevistic outfit. The directors were actually made afraid of the League's literature; and when one of the League's advisers held a meeting in Nashville and a confer ence for co-operators, not an official of this organization could be in duced to come, although each was invited. A short time later, Davis eloped with the society's automo bile truck and took $4,000 cash of the society's funds with him. When the new constitution of the League was adopted at Cincinnati, provid ing for the formation of district leagues, one of the first places to send word that they wanted to start a District League for educational purposes was Nashville, Tennessee. Righteous indignation is waking up these people. Many similar examples through out the central and western states could be cited. But these suffice to show that real co-operators in this country, if they are only knocked down hard enough, bounce up higher than they were before. THE MELTING POT In the Soo Co-operative Mercan tile Association at Sault Ste. Marie, Michigan, a census of the member ship shows the following national ities and races: English, Germans, French, Ital ians, Swedes, Finns, Norwegians, Danes, Scotch, Irish, Jews, Negroes, and other Americans. Religiously they were divided about as follows: Catholic ............ 86 Baptist ............. 42 Finnish Lutheran..... 21 Salvation Army...... 1 Methodist ........... 70 Episcopalians ....... 38 Presbyterians ..... 56 Jews ............... 3 Church of Christ. .... 30 THE COMMON GOOD NEW PUBLICATIONS The League has just published a new pamphlet entitled, "How to Start a Wholesale," which has been brought out to meet the demand for this information. A new pamphlet on "Co-operative Housing" is also ready. Many re quests for information on productive co-operation has required the publi cation of a pamphlet on "Producers' Co-operative Industries," which has just been issued. The Transactions of the Second Convention are ready. THE WORK OF THE CO-OPER ATIVE LEAGUE OF AMERICA During 1920, the League has sent out in response to requests 170,287 pieces of literature and 1,257 books. Some of these have been sent to every state in the union and also the Canal Zone, Porto Rico, Barba dos, Canada, England, China, India, Russia, and South Africa. The League received and an swered 3,969 letters asking for in formation and help from individuals and societies starting stores. And 13,500 circular letters on the rou tine work of the movement were sent out. Card catalogues are kept up to date, covering all co-operative en terprises and organizations in the United States. One hundred and five meetings were addressed by speakers sup plied by the League; 1,439 persons have called at the New York office. A news service is sent out each month to 81 papers of the labor press. Thirty-nine special articles writ ten by the League's staff have been published in labor papers and mag azines of general interest. Through the press clipping ser vice there is kept on file all the available news on the Co-operative Movement in this country and abroad. Stereopticon slides and moving picture reels are ready for the use of educational committees. These include sets of pictures illustrating the movement in the United States, England, Russia, and Switzerland. Twelve thousand copies of the Associated Magazine are published each month by the League's news bureau. The circulation of CO-OPERA TION is 50,000 copies a year. Co operative magazines are on file from Canada, England, Scotland, France, Germany, Italy, Norway, Sweden, Austria, Poland, Czecho-Slovakia, Russia, Australia, New Zealand, and Argentina. A series of district conventions was held in the fall of 1919 at Fitch- burg, Mass.; Paterson, N. J.; Atlan ta', Ga.; Pittsburgh, Pa.; Danville, 111., and Little Rock, Ark. The membership of the League consists of 290 societies. These con stituent societies represent 91,000 families. The League has 916 in dividual members who, under the new constitution, have no voting privilege. The yearly budget is partly met by the sale of literature. But over and above, the income from this source and from membership dues is a large deficit. The co-operative societies of the United States do not finance the League. The total in come from membership dues during the past year was less than 9 per cent, of the deficit which has to be met to carry on its work. About 91 per cent, of the income of the League to meet the deficit must be raised by soliciting financial help from friends of the movement. The stability of the Co-operative Movement in this country depends upon The League. The League is saving the working people every year many times the amount of its annual budget. And it needs ten times the amount of money it is using now to develop co-operative education. From where is this sup port to come? A glance at the list of publications of The League gives an idea of the information that is made available by this means. All of these publica tions are the product of practical experience in this country. Were it not for The Co-operative League of America there would be no central source of information, and the movement in the United States would be at the mercy of chance. The friends of the Co-oper ative Movement should guarantee this essential support. 12 CO-OPERATION CO-OPERATION 13 NEWS AND COMMENT DISTRICT CO-OPERATIVE LEAGUES One of the most significant actions of the recent ^ American Co-oper ative Convention, held at Cincinnati, was the resolution passed urging the formation of District Co-operative Leagues, for the ultimate estab lishment of a national union embrac ing every state. A model constitu tion for such organizations was un animously adopted. It provides for absolute local autonomy of District Leagues for educational purposes. During the convention week the first District League was actually organized. This was the Ohio Dis trict League, and the following of ficers were elected: President, T. J. Donnelly, Columbus; George Sav age, Vice-President; John F. Mc- Namee, Secretary-Treasurer. Di rectors : Roy Gardiner, Athens; Roy Donaldson, Crestline; E. P. Coggins, Cincinnati; E. L. Hitchins, Cincin nati. On December fifth, the second District League was organized in Missouri, with the following officers and directors: President, George R. Patterson, St. Louis; Secretary, A. W. Warinner, Brookfield; Treas urer, L. E. Shelton. Directors: J. M. Lehman, Joplin; James W. Mil ler, Eldon. The officers and directors of other District Leagues will be published as the names are sent to the office of the Co-operative League of Amer ica. We are informed that Leagues are being organized in the follow ing states: Massachusetts, Wiscon sin, Michigan, Tennessee and New York; while in several of others ten tative meetings and plans are under way. The model constitution for dis trict leagues can be had from the Co-operative League of America. A LOSS AND ITS LESSONS A co-operative store, conducted by the employees of one of the government departments in Wash ington, failed recently. We have not closely examined into the meth ods pursued by this store, but two policies were carried on which were invitations to inevitable disaster for a co-operative store. The store began business by sell ing staple groceries at cost. The business grew and was popular. Then there was a demand that the store undertake the sale of clothing at cost, to cut the exorbitant prices prevailing. Accordingly, thousands of dollars worth of men's and wo men's clothing, hosiery and shoes were bought and sold at cost, in competition with private business selling at huge profits. Things went well until the drastic price reduc tions in clothing were made, after the public ceased to buy at profiteer ing prices. Then the store found itself with a stock of clothing on hand which it could not sell at cost price, because that price was above the price then prevailing on the market. It also found that it had not put a penny aside for just such an emergency. The stockholders of the store now stand to lose $8,000, and the store may go down in ruin. Besides the financial loss to the in dividual stockholders must be reck oned the injury to the Co-operative Movement. Hundreds of people will be disgruntled, and will condemn all co-operative enterprises, without discriminating between Rochdale co-operatives and those conducted on the cost-plus basis. Two lessons are to be derived from the unfortunate experience of this store: First, do not sell at cost price, but at market price, putting aside part of the surplus as a reserve fund for the store to meet emergencies or to enable it to expand; part to be dis tributed to members as their divi dend or savings-return; and part to be used in educational work and for other social purposes. Second, dp not undertake the sale of goods which are seasonal in char acter, like women's clothing, while the store is young and has no re sources to risk the new venture. It is common knowledge that the prices of such clothing are high in the beginning of the season, and drop sharply at the end of the sea son. Unsold goods have little value for the next season. These factors make it highly speculative to handle clothing at all, and especially so in the early stages of a store's ex perience. And to sell clothing at cost is to invite trouble. The store should for a long time confine itself to staple groceries and other goods whose price does not fluctuate much, a^id which may be sold next season, if they are not sold now. They should be sold at cur rent prices, and a surplus set aside to cover possible losses. When the society is sufficiently prepared to meet losses, it can conservatively start out in a new line, if the de mand is great enough. It was this cautious step-at-a-time policy that brought success to Co operation in Europe. And it has been the universal experience that the cost-plus system and dabbling in speculative goods have brought nothing but disaster upon co-oper ative stores. IRISH VICTIMS INCLUDE CO- OPERATORS Not content with burning down thirty co-operative buildings in Ire land and killing co-operators, the British authorities continue their horrible crimes. The British Gov ernment issued an official report No vember 24th concerning the killing of three prisoners in Exchange Court, Dublin, by the Black and Tans. The report declares that the men were known leaders of the Re publican Army of Ireland, and were shot while "making a desperate ef fort to overpower their guard and escape." This report has been flatly contra dicted by Edward Lysaght, chair man of Maunsell's, the noted pub lishing firm, and leader in the co operative movement of Clare and Landownes, besides being one of the best known men in Ireland. Accord ing to Lysaght, Clune, one of the three men shot, was not a member of the Republican Army, but was Secretary of the Raheen Co-oper ative, and had come to Dublin to make his annual audit of the ac counts of the co-operative. The "incriminating documents" found in the possession of Clune were official documents of the Ra heen Co-operative. Lysaght em phatically asserts that Clune was not trying to escape. "He had no motive for trying to escape from any custody, seeing that he knew that I was outside and would identify him as soon as possible and secure his release," Lysaght declared. The testimony of Lysaght dis credits the melodramatic story of a fight in the barrack room with bombs, which was given out by the British Government authorities as an excuse for the killing of these men. A CHANGE IN THE RANKS OF GERMAN CO-OPERATORS Who are the co-operators in Ger many? In the past, co-operation appealed more to the members of the middle class than to the work ers. But a recent occupational cen sus of the Produktion Society of the city of Hamburg shows an insignif icant portion of the membership to be members of the professional and trading classes. There are 65 writ ers, 377 musicians, and one artist in the society, as compared with 7,889 metal workers, 2,492 bricklayers, 2,084 tailors, 4,648 transportation 14 CO-OPERATION CO-OPERATION 15 workers, 2,167 dock laborers, and 2,527 woodworkers. This is typical of the membership of the society, which according to the latest re ports, represented one-sixth of the population of Hamburg.! It is a radical change in the personnel of the co-operatives. Several tendencies have been at work in the midst of the turmoil of Germany, to produce this change. In the first place, the government no longer hampers the growth of the Co-operative Movement. The gov ernment of the Kaiser did. Govern ment employees formerly forbidden to join co-operative organizations, are joining them. Another factor is a change in the viewpoint of organ ized labor, whose chief weapon in addition to labor unionism had been the political Socialist movement. The last two years, however, have seen a steady drift from the old policies of the labor movement, which is now coming to regard Co operation more and more as a means toward the goal of the Co-operative Commonwealth, as well as a source of immediate relief under capital ism. As a consequence, the workers have been joining co-operatives in large numbers. On the other hand, the constant agitation of the small retailers against consumers' co-operatives has resulted in the elimination of prac tically all middle class elements from the co-operatives. With the influx of labor and the efflux of the bourgeoisie, the ranks of the Ger man co-operators present a different aspect. CO-OPERATION AND BRITISH POLITICS Over 2,000 delegates attended the conference at Preston, England, convened by the Co-operative Union to discuss the Corporation Profits Tax. The conference endorsed the recommendations of the Special In come Tax Committee, which refused to recognize any arrangement which does not exempt from taxation the surpluses arising from mutual trad ing, and pledged themselves to use all legitimate means to defeat the working of the tax and to ensure its defeat. The other important object dis cussed by the delegates was the re lation of the co-operative move ment to the labor movement The following resolution was passed by an overwhelming majority: "That this conference strongly recom mends all co-operative societies to support the establishment of a labor and co-operative political alliance, and to instruct their delegates to vote in favor of a scheme to be sub mitted by the next annual con gress." The mover of the resolu tion stated that the recent state ment of the Prime Minister that the fight of the future lay between individualism and collectivism was a direct challenge to the Co-oper ative Movement, and that it was their duty to work in harmony with the trade unions and the labor move ment. The main opposition to an alliance of this kind comes from the Co-operative Wholesale Society, who wish to concentrate the activ ities of the movement on the com mercial side. The C. W. S. direc tors have expressed their opinion that such an alliance would hamper business development, and recom mend direct and separate represen tation in parliament. This information is from the La bor Research Bulletin, October 1, 1920. There is room for division of opinion upon the political policy of the C. W. S. There is much to be said for both views. Should the co-operatives frankly ally them selves with the labor party and wage a political campaign, or should they vote as citizens for in dividuals pledged to support Co operation, regardless of their party affiliations? HOW THEY DO IT THIRD DEGREE FOR A "CO-OPER ATIVE " PROMOTER A representative of the Harrison M. Parker concern, Chicago, is in the city sell ing stock. He approached the Secretary of the Central Labor Body, asking per mission to come before them. It was granted. They also extended me an in vitation to be there that evening. This Mr. Williams, in his address, went into de tails with the accomplishments of the Koch- dale Weavers. He stated that the Co operative Society of America had 100 stores in Illinois, and that they had selected Danville, with other cities, as a point foi a warehouse. He claimed to have 10,000 acres of land in' Michigan under cultiva tion and producing. His statement rela tive to the returns on investment was ap proximately 30 per cent, per annum; being 6 per cent, on capital invested; 5 per cent, on return-savings, and the rest a bonus re turn semi-annually. Then the fun began! Our questions brought out the following facts: He had no indorsements or credentials from any union or labor body. They have no by-laws and are not in corporated under the state law. The officers are selected and not elected; their salaries are a commission and not fixed; the officers cannot be recalled. They do business under the common trust law, federal constitution. Mr. Williams would not state what he was paid for selling stock, nor where such expenses were paid from. He had no answer when asked why he came into a territory already organized. He did not submit any printed or written matter, but offered to take a committee to Chicag_o to investigate. In the discussion he denied any knowledge of the New Major ity declining to publish material for them, or of The Co-operative League of Amer ica refusing to sell them literature. And when we were through with him, he left the hall apparently dumfounded. A resolution was then introduced in the central body for publication in the local daily newspapers, advising the people against investing money in bogus concerns and to call the stores when approached on this matter. EOT SHANKS. Danville, 111. THE SALVAGE FROM THE WRECKAGE OF A CHAIN STORE "CO-OPERATIVE" We have organized the Eockford co operatives under the Illinois State Co operative Act of 1915, and $2,760 was paid in at the time charter was granted. This is an outgrowth, and really a salvage of the wreckage of a fake co-operative put across by a former student of the Harri son Parker school, about a year ago. Some time ago I wrote you concerning Eockford Eetail Unit No. 1, Eockford Eetail Unit No. 2, and the so-called Eockford Co-oper ative League, all of which were promoted by one V. W. Connor. In the latter part of May, on petition of trustees charging that the real purpose of the proposition was securing money from the public under false pretenses and not a real co-operative enterprise in any way, we secured appoint ment of a receiver for the old institution and order from the court appointing the receiver to continue operation of the busi ness and pay the creditors. We were successful in acting quick enough, so that we were able to pay every legitimate creditor 100 per cent, on the dollar, and then order of court sold out the stock, fixtures and good will, and re mainder of the business on August 24th, to a trustee selected by a committee of five of the strong labor unions of Eockford. This trustee immediately opened the store again for business the next morning, and the labor organizations got busy securing subscriptions to capital stock of the Eock ford co-operatives, license for which had been secured about one and one-half years ago, but never acted on sufficiently to se cure charter. On November 17, sufficient stpck having been subscribed for, and paid in under the Illinois law, a subscribers' meeting was called and the By-Laws adopted, board of directors elected, and committees elected in accordance therewith. Shortly there after the commissioner's report was sub mitted to the Secretary of State, and though at first turned down, the By-Laws were finally approved as originally drafted at the membership meeting, and charter has been received and been recorded in the recorder's office of this county, so that the Eockford co-operatives are now legally a corporation in this State. In the mean time the store has been and is being con ducted by the organization committee. Not $1.00 has been spent in promotion expense; not $1.00 has been expended for attorney fees, and not $1.00 will be ex pended for accounting service in arranging a proper account system, as we have among the original incorporators, and as chairman of the auditing committee, an expert pub lic accountant, who is now going over the blanks furnished by your society, with a view to adopting or suggesting such changes as may be necessary to adapt them to the needs of this organization. Not one minute of lost time has oc curred, and not a cent's worth of rent for 16 CO-OPERATION vacant store has been or will be paid, as the store has been constantly open for business with the public during all of these changes. I desire now on behalf of the Rockford co-operatives to express the thanks of the organization and its membership to The Co-operative League of America for the many helpful hints we have received from them in the past. FRANK H. HALL, Rockford Co-operatives. Rockford, 111. AT DELMAR, DELAWARE We organized and selected officers, as per your pamphlet of instructions, using the Rochdale system as our guide. Incorporated, had certificate registered, and paid all expenses incident thereto. Paid for our store license, rented a nice store building, have installed good fixtures, buying same at a barg_ain price. Will arrange for a big opening day and have each of our 200 members lined up ready for doors to open to purchase some thing as a starter. We started with 200 members of the association. They paid $1.00 each. All expenses, up to date, exclusive of the fix tures, have been met with this contingent fund, including payment of one week's wages to the manager. We believe we have succeeded in getting a good manager. Out of our 200 members we have sold 100 members 259 shares of stock at $10 each. Of this amount $980 has been paid in and the stock certificates have only been here a week. We have invited 50 farmers to join our association, also as a mutual benefit to both parties. Every objection is found to be from lack of understanding of the plan. We gave them each a pamphlet, but they did not all read it, and we have to tell it to them. As soon as they understand it they buy stock. MRS. J. M. CLEARY, Secretary, Delmar Co-op. Ass'n, Inc. (Since receiving the .above -we have learned that the store is thriving. The railroad men who formed the nucleus for the store come from miles around on their passes to patronize the store.) AT SCRANTON, PENNSYLVANIA Acting upon the report of Bro. Somers, the most of which was information fur nished by you, we have released all stock salesmen and will close our office as soon as possible. We know we have made sev eral mistakes, but expect to profit by the'm, and go a little more slowly in the future. It is now up to the men themselves to put the store across. J. W. WOODARD, Secretary, Scranton Co-op. Ass'n. October 4, 1920. My wife and I have been putting in some strenuous days at the store. Last week was our best; turned out about $800 out of a stock of approximately $1,100. They are taking hold pretty good. They opened up so quick and things have been moving so fast I have not got the control system in operation altogether, but the control committee expects to take inventory next Monday, and then everything will go ac cording to the system. J. W. WOODARD. December 15, 1920. AT WILMINGTON, DEL. Wilmington has peculiar problems. We have an old-fashioned street market on Wednesdays and Saturdays. The farmers sell direct to the consumer and _ often charge more than the middleman in the high-priced stores. Prices for meat are usually higher than in Philadelphia markets. MRS. FRANK GARDNER COX. SUBSCRIBE FOR CO-OPERATION Several co-operative societies have recently subscribed to CO OPERATION for each of their mem bers. These societies simply have had the question put in the form of a motion, "That the society sub scribe to CO-OPERATION for one year for every member, that the Co operative League of America be in structed to send the bill for the sub scriptions to the society, that the treasurer be instructed to pay the bill out of the funds of the society, and that the one dollar required for each subscription be charged to the account of each member and de ducted from his next savings- returns." The method is simple. The cost is little. Each member then receives the monthly magazine which will help to make him a better educated co-operator and a more loyal mem ber of the society. CO-OPERATION A magazine to spread the knowledge of means whereby the people, in voluntary organization, produce and distribute for their own use the things they need JAMES PETER WAEBASSE, Editor. VOL. VII. FEBRUARY, 1921 No. 2 VITAL ISSUES CO-OPERATION SUPPLIES THE MOTIVE The amazing thing about modern industry is that the suffering public tacitly approves, of it. Modern in dustry, run for the profit of the com paratively few owners, who buy hu man labor for the same purpose as they buy raw material, is actually accepted by the American people as a great and good institution. The peo ple and the Government permit the owners of industry to possess the de lusion that in serving their own in terests they are serving the public interest. About as far as the average good citizen goes is to desire reform of the present system. But reform will not save us. An absolutely different mo tive must be introduced in industry. That there is hope in the world may be judged by the fact that the edi tors of the New Republic, who are re formers and not radicals, have caught the vision of such a motive; they say: "The Co-operative Movement supplies such a motive. Based as it is on the twin principles of the limitation of profits and the subordination of the capital invested in an economic enterprise to human life, it provides the one promising method of escape from the successive waves of anar chic private aggression and s_avage public repression which prevent existing indus tries from even beginning to satisfy the economic needs of a civilized people." But it does not suffice that co-op erators, anarchists, socialists, com munists, syndicalists, single taxers, and a few reformers do not believe in the goodness of the prevalent eco nomic system; the world will not be a safe place to live in until that great majority, the mass who fear radical ism, and, like sheep, follow one an other in the path to the shearing- fold, wake up to what is wrong in the present system, want something bet ter, and demand the thing they want. Three steps seem to stand between us and civilization. The first is suf fering; the second is deeper suffer ing; and the third is the depth of suffering. Then comes the revela tion. It is a hard path from the abyss up the slopes to freedom, but step by step the world is moving in that di rection. PRODUCERS' CO-OPERATIVE INDUSTRIES "Three thousand members of the United Cloth Hat and_ Cap Makers' Union re sponded enthusiastically to the appeal for funds which are to finance the establish ment of a co-operative factory by the union. More than $25,000 of the $100,000 re quired for the co-operative was pledged at the meeting. A committee of 100 has been chosen to canvass the individual mem bers to obtain the remainder. A forceful speech by the editor of "The Call" pre cipitated a virtual deluge of stock subscrip tions which busied the committee for sev eral hours. When the counting was com pleted, it -was found that 500 workers had paid deposits on stock."—News item in New York paper. At the above meeting the examples of successful co-operation which were used to inspire the workers were drawn from the field of consumers' co-operation. Not an instance was cited where the workers as produc ers had successfully secured co-op erative control of a factory. But these people go plunging ahead, nevertheless. For many years before the modern Co-operative Movement was estab lished, the working people had ex perimented with the co-operative shop. This was the ideal of the early 18 CO-OPERATION CO-OPERATION 19 co-operators. Before the Rochdale movement was started, the Christian Socialists had written voluminously, preached and organized, always from the standpoint of the shop worker. The first half of the last century in Great Britain was a laboratory period in which every possible experiment in the line of co-operative production was made. And not only the work ers' money was lost, but millions of the capital of well-meaning philan thropists. Out of the enormous price that was paid, only a few shops sur vived. Let us bear in mind that the work ers in manufacturing industries did not succeed with the co-operative movement until they organized them selves as customers, and then pro ceeded to develop their shops and factories in Which to produce com modities and supply their own wants. In every industrial country in Europe the great examples of co-operative success are in the field of consumers' co-operation. We must face the facts. The co operative producers' factory has failed. After a hundred years of painful experimenting, history shows that when a group of workers or ganize and control their product, their motive is to get as much as they can for it. The interest of the small group of workers is to exploit the great mass of consumers. Even though they are less ruthless, and give better value than capitalistic producers, the main fact still stands. They sell their product in competi tion with capitalistic producers, and no matter how unselfish and ideal their original plan has been, they tend ultimately to become animated by the same spirit of trade as ani mates the capitalist. The history of the co-operative pro ducers' factory in the European countries is in line with the above facts. The United States is not with out its examples. From 1845 down to the present time, such organiza tions have come and gone, and left their groups of sad and disillusioned workers standing by the wa3^side. There is an abundance of history to prove to the worker that his en trance into the co-operative move ment must be by the path of con sumers' co-operation. THE BRITISH PEOPLE'S REAL CONFLICT A recent article in the New York Times gives accurate information on the Co-operative Movement in Eng land and presents a frank discussion of the problem. The author states that, "of all the large-scale experi ments being conducted by the Eng lish people to-day none is more sig nificant and important than the Co operative Movement." T.he article goes on to say that "a big fight is on." "Americans," it says, "from their distant point of view are apt to think that the chief menace to the established order of business in Eng land is Bolshevism. A closer inspec tion shows this not to be so. But the big business story from England has to do with differences about an economic or business rather than a political theory. Competition versus Co-operation: these are the antag onists." The New York Times hopes that competition will win. The private traders, it says, sense the danger. Powerful trade bodies like the Fed eration of British Industries, which represents fifteen billions of capital, are fighting this Co-operative Move ment. "The leading trade organiza tion of England called the Amalga mated Trades Association, has also mobilized membership and money for the campaign against Co-operation." This article might have gone on and told the rest of the story: That not only are the forces of vested wealth and pelf arrayed against Co operation, but the British Govern ment also, which is their agent; and in the end Co-operation and the peo ple are going to win against all of these—their common enemies. Let the people in the United States learn their lesson from Europe lest they take politics too seriously. The government is but a shadow, it is only the reflection of the forces which own the property and control the finances. Whoever controls the in dustries controls the government. The way for the people to get con trol of their government is by get ting control of the industries. And when the people have control of the industries, the land, and the finances of the country, they should be able to get along without the government. And the way for them to get control of the industries is first to perfect their organization as Co-operators at the points of distribution. THE LOYALTY OF DIRECTORS There are societies whose directors do not trade at the store. This seems incredible, but it is true. No society can succeed unless it has the loyal patronage of its mem bers. If one member goes elsewhere to shop, every other member has the same right. And if every member shops elsewhere the store fails. A co-operative store is not like the private store: the patrons are the proprietors. These proprietors should have at least as much conscience and devotion to their business as the pri vate merchant has to his. The pri vate merchant cannot afford to neg lect his store. He cannot go down the street and sit in another store be cause it is warmer than his. He will warm up his own shop and make it comfortable, or he will stand by it even if it is not as comfortable as some other. But he will not desert it, because its success depends on him. Before he will desert it he will sell out and quit. The member of the co-opera'tive society is a proprietor, whose job is not only to see that the store is run right, but to patronize it also. If the member buys at other stores in pref erence to his own he has deserted it. We can think of him as a scab be cause he is one of an organization the life of which depends upon the solidarity of the members. But when a director patronizes another store in preference to his own we have an example of an an- omoly which has no place in the Co operative Movement. He has accepted election and the confidence of a peo ple who look to him to serve their interest in the affairs of their soci ety. He has not only administrative duties, but he has the larger duty of a guide. He has accepted office as the agent for the people to do all things for the good of their society—and his. The society will fail without their patronage—and his. If he is not true to his trust he is as guilty as a parent who neglects a child. If he thinks to trade elsewhere he should think again, and then make the society store serve him as well as the private store. The chances are that the private merchant is of fering him special inducements for the very purpose of discrediting the co-operative store; if that is the case, this director is in danger of being called a traitor and a sneak. Perhaps the private merchant would not be so cordial to him were it not for the fact that he can be used as a tool to help break up the co-operative store. When the co-operative store is closed then the private merchant will not be so smooth and affable and so accom modating, and his prices will go up where he wants them. Directors do fall for this sort of thing. We also know of directors who wish to seem superior and buy a better grade of goods than their own store carries. They are no more justified in being untrue to their store than the others. If a director will not be loyal to his trust and respon sible he should resign. If as a mem ber he will not be loyal to the store he should resign from the society. A society cannot afford to have that sort of member. If the lack of loyalty is due to the wife who refuses to patronize the store—that is another story. 20 CO-OPERATION CO-OPERATION 21 ORIGINAL ARTICLES WHY DO NOT THE CO-OPERA TIVES CO-OPERATE? • By A. WIEKKULA Consumers' Co-operation is a movement of progressive people to change the system of production and distribution of things for consump tion. It threatens the present order of society by replacing the wasteful and anarchistic system of production and distribution by a more rational method. The movement starts from the end of organizing the consumers into consumers' societies, conducting stores, bakeries, laundries, restau rants, co-operative house societies, theatres, etc. If all of the consumers of the country would join a consumers' re tail society and buy all of the neces sities from the stores of their socie ties the private retail trader class would be immediately abolished. And if all such consumers' socie ties would in turn federate in pur chasing by organizing their own wholesale societies that would abol ish the class of traders and specu lators generally called wholesalers, i brokers and jobbers. By following this course the next to be abolished would be the manufacturer class, also a large class of exploiters. Then the people would arrive at the orig inal source of supply, the .land. Thus the ultimate result would be a com munity of consumers who produce to consume. This plan seems rather simple and easy to apply on paper. But things of human value cannot be at tained by the mere asking. They must be fought through to victory; social forces and interests are not identical at the present time any more than they have been since the dawn of history. However, the Co-operative Move ment already is a factor in our so cial life. A large number of store societies have been organized in this country during recent years. These stores in some districts are al ready numerous enough and strong enough to organize and support their own wholesale society to the immediate advantage of their activ ities, and with large prospects for the future. Only in a few districts have the societies affiliated with the wholesales to any large extent. They are fostered by a few pioneer societies with the hope that other societies will also join and assume part of the responsibilities and blessings offered by such federation. Enlightened consumers have joined their societies. Why do not the consumers' retail societies join the wholesale distributing socie ties? Are they not enlightened to further co-operation? During a personal experience in this line for several years past with the co-operatives my observations of why they do not join have been as follows : 1) Lack of Co-operative knowl edge by the members. . 2) Managers are not co-oper ators. 3) Members and committees do not use their power over the man agers. 4) Small initial investment needed. 5) Continuous effort and respon sibility are required in organizing' a Wholesale Society. 1) Lack of Co-operative knowl edge is a general enemy of the movement. This is the fundamental reason of all reasons for all co-op erative societies for not joining forces with other societies in joint buying. This can be cured by con stant work on education. Educa tion is the foundation of success. Who does not believe in Co-opera tive educational work does not be lieve in Co-operation. 2) In many cases where the mem bers are or have been co-operators the manager is not a co-operator, knows nothing about the principles of the movement and really is un worthy of being a Co-operative man ager or an employee of a Co-oper ative society. There are societies where the members have voted to give all of the support of the soci ety to a Co-operative wholesale so ciety, but the manager not being in sympathy with the idea has not put such decisions in force. In some so cieties the manager is considered as an authority in buying, the society has no committee on buying, and the manager is very influencial in such matters. For a manager who has not ab sorbed the spirit and psychology of co-operation it is very hard for him to pass by the nimble-tongued sales man of a private wholesaler without patronizing him. In many instances a cigar and one pat on the back is enough to buy the manager. Per haps the most serious and great est of all dangers is the big-headed- ness of managers. Some managers think, and explain to the society, that they can buy to a better ad vantage "in the open market" than could be -bought from the co-opera tive wholesale society. Some managers enjoy the feeling of responsibility in having authority to buy. If they do not patronize an available wholesale society it should be investigated and the cause for its inefficiency should be abolished. After all it is the lack of co-oper ative knowledge! It is not a ques tion of high or low prices. 3) In many cases the members, and more so the committees (board of directors), do not follow the work of their managers, and thus allow temptation for speculation. The work of the manager should not be increased but lightened by the work of the committees. 4) It must also be observed that the capitalist traders and bankers are not going to finance and organ ize a co-operative wholesale which is hostile to the capitalistic interests. Some societies are holding back from joining a wholesale society for the reason that they are required to make an investment in its capital stock. Who would organize it for us if we do not do it ourselves? Self-help and self-support are the fundamentals of the Co-operative Movement. Responsibility and ini tiative rest in the hands of the con sumers. 5) We are used to waiting for opportunities to knock at our doors. We do not like to do things our selves. We wait for somebody to do our part. In so doing we gen erally stand and permit ourselves to be robbed. It serves us right. To build an organization to serve our needs we must do it ourselves. We must participate in the work with all of our enthusiasm. It is worth our best efforts. Co-operation is capable of sweeping the world: why not help to make a clean job of it? CO-OPERATIVE HIGH FINANCE By J. P. W. Capitalistic high finance is well known. It has many forms. One form is called "Trading in futures." Fifteen years ago there was a man called Miller—"300 per cent. Miller" was his more familiar title. He opened a banking house in New York and announced that he would pay 300 per cent, interest on de posits; and he did. He made good. If anybody got scared and drew out his money he got 300 per cent, in terest with it. People stood before his bank in lines a block long. They were bringing Miller their cash by the basketfull. And he never re fused to pay back any timid de positor his money when he asked for it. This gave confidence. His 22 CO-OPERATION CO-OPERATION 23 patrons swore by him. They were three times more than a hundred per cent, loyal. Then the State Banking Depart ment and the District Attorney came along and mussed up Miller's game. Miller said nobody had lost any money, his banking business was going along smoothly, everybody was satisfied, and he would soon have a chain of banks from coast to coast. He said that if his bank was criticised by the authorities confidence would be shaken and thousands of poor people would lose their money. "Leave me alone, you are enemies of the banking business and you are destroying confidence," he said. But the authorities went ahead and closed up his bank. They found that all there was to it was that he paid interest with the cap ital he took in from other people. So long as confidence could be kept up and many people could be kept bringing in plenty of money, he could pay interest to the few who wanted to draw out their interest; and he could return them their cap ital, too, if they wanted it. But who wanted his capital back when it was earning 300 per cent.? Even tually a crash would come, but so long as enthusiasm could be kept going, the crash could be postponed. Miller, having been forgotten by the gullible public, a chap by the name of Ponzi, in Boston, tried the same thing. He got it going. No body had any complaints. Nobody had been cheated, so far as they could See. But the authorities step ped in, destroyed confidence, and now have just sent Ponzi to jail for five years. On the outskirts of the Co-oper ative Movement in the United States this same high-finance game has been going on, too. Groups of in dividuals with highly centralized schemes, claiming to run whole sales, are sending out "organizers" after the peoples' money. They capitalize the co-operative enthusi asm which is to be found every where; they make big promises; they claim to be connected with everything that is descended from the Rochdale pioneers; and the peo ple let them take their money. In stead of 300 per cent, interest, the people are promised a co-operative movement with strong and sustain ing connections—"just like the Brit ish C. W. S." These false co-oper ators give their dupes the fiction that societies in the United States all fail unless they are connected with some strong central organiza tion—and "they are it." Then the game goes merrily on. These organizations, with their "wholesale" attachments, keep go ing so long as new capital can be kept coming in. The service they perform for the societies connected with them is utterly inadequate to justify societies joining them. In every instance, so far as their so- called "wholesales" go, the societies could buy cheaper elsewhere. With a system of rosy-colored reports in stead of actual service, and with promises instead of performance, the branches are kept loyal. In the mean time the "orgart- izers" are out bringing in new mem bers and "organizing" new societies. By opening fewer stores than so cieties are "organized," by post poning the opening of stores in some cases, and by collecting the money and showing no signs of opening a store in other cases, capital is al ways on hand at the central office to keep the "bubble afloat." A large amount of money is spent in traveling about and quieting sus picion, publishing explanations, and discrediting legitimate co-operative organizations which are in a posi tion to point out what true co-oper ation really is. This is going on in many states. The fact that some of the "organ izers" are well-meaning men, and that honest people have been in duced to serve on their boards will not save them. They are dangerous because they have not the quality of service to justify the money they are taking, and because they are kept alive on the capital which should be invested in goods and equipment to serve their members. These things are sure to blow up as did the Ponzi scheme of trading in futures. The methods of high finance have no place in the Co operative Movement. RECEIVERSHIP FOR THE NA TIONAL CO-OPERATIVE ASSO CIATION (WHOLESALE) In Chicago, January 18, 1921, by order of U. S. District Court, the Na tional Co-operative Association was placed in the hands of a receiver. The branch in Hoboken, N. J., is also in the hands of receivers. Despite the abundant information in the hands of trades unionists, for the past year, they have given their indorsement and their money to this organization. Organized labor now must pay the reckoning! THE CO-OPERATIVE MOVEMENT AMONG LITHUANIANS IN THE U. S. By C. D. BURE The Co-operative Movement among Lithuanians has been spread in large scale through the United States. It is a very new idea for the immigrants of a small nation recently under a Romanov's regime. The historic sources of this move ment begin in unsatisfactory work ers economic conditions in the United States. The cradle of this movement is in New England where, at present there are about fifteen so cieties, the oldest is at Brighton, Mass., organized in 1910. All Lith uanian societies in the United States are consumers' societies, except the Bridgewater Workers' Co-operative Association and the Co-operative Bakery Society of Lawrence, Mass. Lithuanians have organized in the United States about eighty societies, of which 30 per cent, have already failed on account of not having had sufficient responsible leadership. Enthusiasm and the spirit of the co operative idea among the Lithuani ans is very high, but the Rochdale plan and modern co-operative man agement are still unknown to them. The leading slogan of all those so cieties is "One Vote." The true co operative principles have not yet been fully introduced among the Lithuanians in this country. Bridgewater is a town with 9,000 population. The Lithuanian society there was first started by a small group of workers by acquiring real estate and erecting houses. That was in 1913. They now have four 17-family houses. In 1915 the small community was reorganized into the Bridgewater Workers' Co-operative Association and incorporated for $250,000. Now the B. W. C. A. manufacture men and women's "Over Globe" shoes and are in touch with over 500 firms in the United States. The organization consists of 700 members; price per share is $100; one vote for each member. LABOR BACKS CENTRAL STATES WHOLESALE The United Mine Workers of America, Illinois district, have in vested $125,000 in the share and loan capital of the Central States Co-op erative Wholesale Society, located at East St. Louis, 111. This action came as a result of the recommendation of Frank Farrington, President of Dis trict No. 12 of the United Mine Workers. The recommendation was concurred in by the State Convention and the Executive Board of the min ers' organization. There are 88 local stores affiliated with the wholesale, most of which are organized among the mine workers of the state. 24 CO-OPERATION CO-OPERATION 25 THE COMMON GOOD NEWS AND COMMENT A COURSE ON THE CO-OPERA TIVE MOVEMENT By Dr. J. P. Warbasse, in Schermer- horn Hall, Columbia University, New York City, March 2nd to April 27th, every Wednesday evening at 8.15 P. M. March 2—Economic conditions before the Rochdale period; Co-operation in Great Britain; British Labor and the peace ful revolution. March 9—The Belgian method of social or ganization; The "houses of the people"; Recreations; The Italian workers' ap proach to Co-operation; The war time awakening of France; Denmark, on the threshold of civilization; Housing in Switzerland. March 16—The suppression of German Co operation by the government of the Kaiser; The cradle of Co-operative banking; The mass movement in Aus tria in self-defense. March 23—Russia, the social laboratory: Voluntary versus compulsory associa tion; Co-operation and the political state. March 30—The Near and Far East; The store in the temple; Co-operative edu cation; The community center. April 6—The United States, the land of Co-operative problems; Rural Co-oper ation; Trade Union Stores; Insurance. April 13—Practical Co-operative Methods; Organization; Management and popu lar control; The great need. April 20—The relation of Co-operation to other modern movements; Producers' versus Consumers' Co-operation. April 27—The philosophy and ethics of Co-operation; An agency for industrial and international peace; Co-operation as an end in social reorganization. TRAINING SCHOOL FOR WORKERS A course of training in practical problems of management and admin istration for co-operative workers will be given by The League in March. Students may register and get fur ther information now. ADVICE ON THE INCOME TAX The Treasury Department on Jan uary 6, 1920, made the following ruling in regard to the Income Tax payable by co-operative societies. 1.—"Dividends" or rebates paid to members during the year are exempt from the provisions of the Income Tax Law. They should be deducted from the gross income, and should be shown with other items of cost in connection with goods sold during the year, in Schedule A of Form 1120. 2.—Profits derived from sales to non-members and "profits retained by the association to be used in the business, or for any other purpose," are subject to tax. A FEDERAL CO-OPERATIVE LAW The New York State Federation of Agriculture, at their recent con vention in Rochester, passed a reso lution : "Requesting Congress to authorize the organization of co-operative associations under a Federal act, with authority to use capital and make profits, and to include banking as well as co-operative business." A bill for a federal law has already been introduced by Senator Sheppard. The chief object of the bill is to pro vide a uniform law under which co operatives may incorporate in any state, with the full protection of the Federal Government. The bill also provides a fund derived from contri butions made by co-operative socie ties out of their surplus savings to be held by the Secretary of Labor as a creditors' guarantee fund. It also may be used as a loan fund for co operative associations which are in financial difficulties. It limits the maximum interest on capital stock to 6 per cent., and provides for the setting aside by each of an educa tional and reserve fund. AN UNHEEDED WARNING In our issue of August, 1920, un der the heading, "A New England Organizer," we warned against the activities of a man who was travel ing around New England establishing co-operative stores. We indicated that his methods were bad, despite the fact that he carried good A. F. of L. credentials, and we cautioned •our readers to beware of him. We informed the A. F. of L. about this man, but it took no action. Our warning was ignored by the people of Fitchburg, Mass., and it has cost them just about $5,000 in cash. The Fitchburg Sentinel of January 5th announces that a board of au ditors going over the books and ac counts of the Fitchburg Co-operative Society have discovered various evi dences of crookedness on the part of somebody. In the meanwhile, Wil liam P. O'Brien, the organizer whose activities we cautioned against, "has departed for parts unknown." These are some of the things dis covered by the auditors: A freezing plant which cost §1,600 was charged against the store as $2,600. The remodelling of the premises used by the store cost $1,400, but the society paid $3,000. False receipts for scales raised the cost $250. One hundred and sixty-three per sons who paid $10 each for stock re ceived neither stock nor a receipt for their money. Fake bills, false receipts, forged checks, and other papers were used to cover up the missing money. In all, the society has lost $5,000 in this manner. We are gratified to learn that in spite of this drain on the store it is solvent and will continue on a sound basis. But we cannot help feeling that the sacrifices now required of the Fitchburg co-operators to recoup their heavy loss were absolutely un necessary. Co-operation is not an experiment. If the methods tried by time and by the experience of millions of men in many countries are employed, suc cess is bound to attend the co-oper ative stores. The Co-operative Move ment wherever it has met with suc cess has not needed the services of paid organizers. The impetus for the organization of co-operative societies should spring from the people. Again we warn our readers against the professional "co-operative" or ganizer. He is not only in New Eng land, but in every part of the coun try. TWO LAUNDRIES The Mutual Laundry, of Seattle, Washington, is now over three years old. It was organized by the strik ing laundry workers. But soon it was realized that a laundry owned and run by the workers in the indus try for themselves alone was not feasible. Stock was sold to individ uals and to trade unions. The first week business amounted to $188. At the end of the first year the business had increased to $1,350 a week. The annual business for 1919 was $131,- 000. The weekly business now aver ages $26,000. The laundry has 60 employees and the pay roll for 1919 was $86,000. There are 300 shareholders consist ing of consumers, individuals, unions and employees. The laundry has 4,000 customers. It paid 10 per cent, interest on its stock in 1919. The laundry has fourteen delivery automobiles. Its plant cost $10,000, and it spent $20,000 before it got well organized for business. The work is done on 15,000 square feet of floor space. A rest room, where coffee is served, is provided for the workers. A garage and auto-repair machine shop is maintained. A recent inven tory of the plant now shows a valua tion of $75,000. The Citizens Co-operative Laun dry, of Little Rock, Arkansas, is now some two years old. Its stock is 26 CO-OPEEATION CO-OPEEATION 27 mostly owned by the Central Trades and Labor Council. But outside of this trade union ownership of stock there are about 700 shareholders. The laundry has thirty employees. Its annual business is $35,000. Its payroll amounts to $420 per week. The plant, which originally repre sented a $10,000 valuation is now worth $50,000. Recently a series of calamities be fell this laundry. Its delivery equip ment was destroyed by fire. The next week a horse broke its leg. On the following week an automobile was wrecked, with no insurance to cover the loss. Then a horse ran away and totally destroyed a wagon. On top of this the open shop move ment of the whole city is trying to destroy the laundry. But the laun dry moves serenely on and has al ready seen one of its chief compet itors go out of business. Because the surplus-savings are put into the plant for expansion and improvements many stockholders, who do not understand Co-operation, complain and cry for dividends. The manager says: "If we could hand them fifty cents as profits they would think the laundry a greater success than if we had increased it ten fold." The report from the Little Rock Laundry goes on to say: "Our educa tional meetings are not well attended, although we have had brass bands, sleight-of-hand performers, singing, children and prominent men as at tractions. We may have to stage a prize fight to get the people to come." These two laundries are going ahead and finding the path the others are to follow. Neither of them is doing as much in the line of organiz ing their consumers into a real Co operative Society as must be done if they are to be gotten upon a secure foundation. This is difficult, and it will be found that it is best accom plished by connecting the laundry with other distributive enterprises. Besides these two laundries there are in the United States the laundries at Chatfield, Minn.; at San Ber- nardino, Cal., and a new laundry or ganizing at Lynn, Mass., and the Greenwich Village Co-operative Laundry, New York City. A LABOR TEMPLE ON THE CO OPERATIVE PLAN The labor unions of Nashville, Tenn., are now the proud possessors of their own Labor Temple, thanks to the attack on labor by the com bined business interests and the Manufacturers' Association, aided by the City Commissioners. When the lease upon the old Nash ville Labor Temple expired, labor suddenly found itself out on the street without a home of its own. The owners of the old Temple, upon whom pressure had been brought to bear, refused to renew the lease and ordered the labor unions to vacate at once. But every available hall in Nashville had been leased in advance by the employing interests. The sit uation seemed gloomy. A general call was issued by the Central Labor Body. At this meet ing the Nashville Labor Temple As sociation was launched, without a penny in the treasury, and with hazy ideas of what it intended to do. For several weeks plans were discussed until an agreement was reached that labor was to unite in purchasing a new Labor Temple, owned and man aged co-operatively. Some forty unions purchased stock in the new Association. Through a friendly third party, negotiations were conducted until two buildings were purchased for $52,000. An initial payment of $12,- 500 was made, and since November, 1919, $32,000 have been paid. The individual unions which are members of the Association make their pay ments to stock out of their treas uries, which are replenished by as sessments upon members of the unions from the proceeds of enter tainments, etc. Several members of the Associa tion were thoroughly familiar with Rochdale principles, and they are re sponsible for the co-operative char acter of the Association. Each member in the Assocation has but one vote, regardless of the number of shares owned. Only the current legal rate of interest is paid upon stock. The surplus in excess of this is to be set aside for improvement of the buildings, or for expansion. There is unfortunately no provision for an educational fund. The Nashville labor movement is grateful to its enemies who are re sponsible for this latest move along co-operative lines. CO-OPERATIVE BANKING MEETS WITH SUCCESS The Brotherhood of Locomotive Engineers' Co-operative National Bank of Cleveland, Ohio, has had an auspicious start. Warren S. Stone, Grand Chief of the Brotherhood and Chairman of the Board of the Bank, announces that the bank on Decem ber 7th had $1,500,000 on deposit. And this after only two months of business. Mr. Stone says: Ours is the first co-operative national bank ever chartered. The bank is specializ ing particularly in systematic savings, in trust funds, and in foreign exchange. The funds of the bank will be used for produc tive purposes, in aiding men in need, the building of homes, and for the promotion of the Co-operative Movement. Everyone is made welcome; advice to those who do not speak our language is given in their own tongue. Fourteen languages are spoken among our employees at present. We can do anything that any legitimate bank can do, and are doing a few things that no other bank has attempted before. "FOOD WILL WIN THE WAR" This slogan, which was dinned into our ears throughout the war, has come back as an echo to the officials of the Amalgamated Clothing Work ers of America who are fighting a pitched battle forced upon them by the lockout of their members by the Manufacturers' Association. Realiz ing that "an army travels on its stomach," and that there may be a long road to travel before this fight is won, the Amalgamated has pre pared itself. A separate association has been or ganized under the name of the Amal gamated Stores Association for the purpose of supplying staple groce ries to the members of the Amalga mated. Five commissary stores have been opened, and ten stores will be operating in New York City and out lying districts by the first of Feb ruary. Robert McKechan, Manager of the Central States Co-operative Society, came to New York and ad vised the Amalgamated officials con cerning the details of wholesaling. McKechan rendered invaluable ser vice in the steel strike commissaries, and his sound, practical advice was much appreciated by the Amalga mated. Money cannot buy a thing in the commissary stores. Members wiho are in need will receive cards free of charge from their shop chairmen. These cards are in denominations of $2, $8, $5, $6 and $7, and are dis tributed according to the size of the member's family, or the extent of his need. They are accepted in place of cash. Groceries, such as bread, but ter, coffee, corn, flour, macaroni, rice, potatoes, peas, sugar, salmon, her ring, oatmeal, milk, etc., are ex changed for strike benefit cards, on the basis of the cheapest chain-store prices. Members who can afford to buy goods may purchase cards from the Amalgamated entitling them to goods at about 20 per cent, lower than chain-store prices. The needs of 25,000 members are supplied daily. Strict business methods are to be put into operation in the manage ment of the stores. Only package goods are handled, thus reducing waste and the number of clerks re quired. An inventory is taken at the end of every day, and strict accounts are kept. The aim of the Amalgamated offi cials is to convert these emergency commissaries in the future into co operative stores. 28 CO-OPERATION CO-OPERATION 29 AUSTRIA BANKRUPT At the second convention of the Austrian Consumers' Co-operatives held at Linz, November 13th and 14th, 1920, the co-operative societies of Austria publicly offered to assume the grave responsibility of feeding the nation through agencies of the co operatives. They declared that the Government had failed to make any progress in the task of feeding its 6,000,000 citizens, most of whom were directly dependent upon the state for work. The co-operatives had the organ ization and the experience requisite for undertaking the great task of keeping the population alive. During the past year they had been feeding one-third the people of Austria. They did not lack brilliant leader ship; Dr. Karl Renner, former Pre mier, is President of the Austrian Consumers' Co-operative Associa tion. But the Government ignored the offer of the only group organized to effectively manage the vital indus tries of the country. They struggled on for two months, while private in dustry continued to break down still further, until virtually every worker in the country but those engaged in the co-operative societies was depen dent upon the state for work or food. With the industries paralyzed and the country disorganized politically the end was inevitable. To-day Austria has publically de clared itself bankrupt. It is unable to pay its many public employees, and it cannot supply food to the starving population. Had the co-op eratives secured control two months ago, before the breakdown became complete, Austria might have been put on its feet. order business. The control is in the hands of the self-appointed officers, and not the stockholders. Some of the leading spirits of the organiza tion are ex-politicians. ANOTHER "CO-OPERATIVE BUBBLE" The People's Profit-sharing Com pany, just organized in Boston, Mass., is another one of those Declaration of Trust companies. It is capitalized at ten million dollars to do a mail ARGENTINA'S SECOND NA TIONAL CO-OPERATIVE CONVENTION Within almost the same week in which our own Second National Co operative Convention was held in Cincinnati, the Second National Co operative Convention of the consum ers' co-operative societies of Argen tina was held in Buenos Aires. The delegates present represented thirty societies with 13,722 individual members and a paid-in capital of $1,106,788, doing a total volume of business of $341,000 each month. Ac cording to the rules of the conven tion only societies representing con sumers were admitted. Most of them were distinctly working class in character. The business of the convention, presided over by Dr. Nicholas Repetto, head of the big co-operative society of the capital, El Hogar Obrero, was limited exclusively to the tasks of organizing a wholesale society and an educational union. Both were successfully accomplished. The by laws of the wholesale society indicate a thorough understanding of the fundamental principles of co-oper ative organization on the part of the organizers. The wholesale rests en tirely on a federative basis, each so ciety reserving the right to manage its own affairs as it pleases. The capital is unlimited. The first issue of 400 shares amounts to $20,000. The educational union is to begin the publication of an official organ and will prepare and print a wide variety of pamphlets, leaflets and books on co-operative principle and practice. The establishment of a co-operative business school in Buenos Aires for the training of co operative employees was also dis cussed. A CHAIR OF CO-OPERATION The co-operative societies of the French Co-operative Federation are to create a chair of Co-operation at the College de France. Prof. Charles Gide, the eminent economist and co- operator, is to be its first occupant. The Federation of Co-operative Soci eties has further organized a number of special courses for employees and members of co-operative societies and is promoting the introduction of Co-operation as a subject of study in other public educational institutions. This is a most important step. The Danish high schools have taught Co-operation for several years. Rus sian universities had a chair of Co operation before the movement was destroyed by the Soviet Government. Many colleges are including lectures on Co-operation in their courses. We shall see an extension of such teach-. mg. HUNGARY'S NEED We are in receipt of the following pathetic letter from "Hangya," the Co-operative Wholesale Society of Hungary: We are sorry to note your decision that The Co-operative League of America was not in a position to make a loan to Hangya. We are exceedingly pleased to hear of your sympathy with our pillaged country. Believe us, it is a perpetual struggle for us to live. Not enough that the revolutions have spoiled all that the war has left us, the one-sidedly dictated peace does not allow us to move or to breathe; our neigh bors, being anxious to keep the pieces torn away from Hungary in their favor, use their influence with the Allied powers in order to entirely prostrate our free will and prevent all possibility of communicat ing with the western countries. Our present life is nothing else but a slow but sure death. If there has ever been a crime committed upon a nation, this is one. Hangya knows what the economic life of Hungary is, for in 1919 it supplied the needs of over 1,000,000 families, or 3,500,- 000 people. There are 3,757 co-operative societies affiliated with it, which purchased goods to the value of 210,000,000 crowns in 1919. The society owns wine-cellars, soap works, chemical works, broom and brush works, steam flour mills, a cheese factory, match factories, farms, paper mills, ironware foundries, and other establish ments. But its people no longer have purchas ing power and it is suffering for lack of capital and raw material, due to the harsh terms imposed by the nations which have "made the world safe for democracy." THE CO-OPERATIVE HAT FAC TORY At a recent meeting of striking hat makers in New York they resolved to start a factory of their own, and call it a co-operative factory. The Se attle workers were referred to as having been helped by co-operatives in their strike in 1919. But these New York workers failed to learn that the form of co-operation that helped in Seattle was consumers' co operation and not co-operative pro duction. Consumers' co-operation has helped the whole mass of work ers in many a strike; but producers' organizations are not adapted to ren der such help. We should not get these things confused. A representative of the National Co-operative Association had en couraged them in the delusion that it would sell their goods. The state ment was made that "through affilia tion with the national organization of consumers' co-operatives and the co-operation of affiliated and friendly unions we will expect little trouble in finding a market for our products." The fact is that there is no national wholesale. The several district co operative wholesales sell but very few hats, and it will be found that they will buy them where they can be bought the cheapest. As to other unions buying this product, experi ence shows that union men in the United States are not much more loyal to the union label than the aver age capitalist is. The Consumers' League has failed utterly to get union men as consumers to buy only union- made goods; and there is no more reason to believe that they will buy co-operative shop made goods. Workers in hat factories have often organized their own factories in the United States, and every one has failed. This is a good thing for the Hat and Cap Makers' Union to know. But the best time to know it is be fore, rather than after, they put their money into a hat factory bubble. 30 CO-OPERATION CO-OPERATION 31 THE CONSUMERS' PLACE IN SOCIETY "The Consumers' Place in Soci ety," by Percy Redfern, just pub lished by the British Co-operative Union, is another valuable addition to the recent literature on co-oper ative theory, hitherto the least de veloped phase of the movement. On the practical problems of Co-opera tion and on its history a great deal has been written. To those who are willing to study there is a vast amount of material on how to run co-operative enterprises and on how they are being run. On the social significance of all these enterprises very little has been said. Co-opera tion has suffered from too little the ory, as other movements have suf fered from too much of it. It is only since the war that co-operators themselves have come to realize that there is something more to the co operative store than merely to curb the profiteer. Most of the radical movements aiming toward the co-operative com monwealth base their programs on the interests of the people as work ers. Mr. Kedfern distinguishes Co operation from these as being based on the interests of the people as con sumers. It represents the home, rather than the workshop. The con sumer, he contends (and the con sumer includes every worker), is the logical unit of an organized indus trial democracy. The industries are established solely to supply the needs of the consumers. Therefore, the consumers should control them, al lowing the workers in their factories and workshops, however, so much local autonomy that they may influ ence their own working conditions. Producers' control, argues Mr. Ked fern, aside from its other inequali ties, implies a man-ruled world. It implies the subservience of the mother to the father of the family, unless we are to assume that mother hood must not be allowed to interfere with the activities of women in the field of production. Co-operation places the control of industry in the home where man and woman stand side by side—equal. The book embodies the thoughts of a man who has devoted the greater part of his life to thinking out the practical as well as the purely theo retical problems of Consumers' Co-op eration. Mr. Redfern is the editor of The Wheatsheaf Magazine, pub lished by the British Co-operative Wholesale Society. His work is worth reading; it will clarify the mind of every student of Co-opera tion. Every co-operator should know what Co-operation stands for, beside supplying him with foodstuffs. CO-OPERATION VERSUS MUNICIPAL- IZATION I can understand that in America, where the problem is new all the way round, your people will want to experiment all over the place before becoming convinced of the true line of progress. In America also, where municipal officers are changed with every change of politics, the essential con nection between consumers' co-operation and municipal economic services may not be so apparent. You may take it, how ever, that the great body of co-operative opinion over here feels no antagonism in principle between municipal water, gas, trams, libraries, and so on, and co-operative supplies. Once convinced that a municipal service would be as good for the consumer, and perhaps better than our own, and as sured that our pioneer efforts would be fairly considered, I do not think we should object to a municipality taking over, say, a co-operative milk supply. Where munic ipal free libraries have offered more to the public than we can offer, we have handed ours over. In regard to water and other essentials, we should not attempt to compete with municipal services, but rather try to make those our own by put ting our own people on the councils. On the other hand, there are many directions in which our organization is superior to the municipal—and in this direction we naturally should resent or resist any gov ernment or local handicap or interference. I hope I make it plain that the issue is less one of principle than of expediency, and that on the ground of consumers' ser vice, we can, and do, support state and local action in many directions without be ing committed to dogmas of state social ism. PERCY REDFERN. Manchester, England. HOW THEY DO IT AT PERTH AMBOY, NEW JERSEY I will try and tell you how we started our Women's Guild. Some of us women got together and talked it over. We de cided to have a meeting. Then we notified the women and at the meeting seventy turned out, and they decided to start a club. We elected officers and committees. The Social Committee looks after all social business. The Educational Committee looks after educating the children, also the mem bers. The Organization Committee tries to get new members and goes out visiting old members. At pur meetings, after the routine busi ness is over, we serve coffee and cake; they are donated by our members; then we have a nice time telling short stories and talking on what would be good for our store. We held a Halloween dance and made put good on it. We run a children's sing ing class for which we pay the teacher $5 a lesson. Then we pay $2 for the hall. In November, we had a children's choral concert. The hall was crowded and it was a great success. We understand that it was the first children's choral concert held under the auspices of a Co-operative Wo men's Guild in the United States. The Guild had a Christmas tree and treat. The children sang around the tree. Then we had a dance. Each of the chil dren got a bag with candies and an orange or apple in it, and a little present. We are going to continue that work this year. We are enrolling the children now, charg ing them ten cents for the lesson and sixty cents for their book with music in it. Now we are starting a co-operative penny savings bank. The men and women are so interested in it they are going to join. We have ordered 100 bank books. We have started a class in accounting and bookkeeping, using" The League's ac counting system. About twenty members have already joined the class. They want to learn to be able to take care of our business. ISABELLA WILSON, Chairman, Women's Guild. AT MOBILE, ALABAMA It is with a certain degree of pleasure and satisfaction that we are now able to say to our fellow co-operators that after having successfully surmounted the numer ous obstacles and handicaps which threat ened the success of the Workingman's Co operative Association's business, we have finally succeeded in placing the business on such a footing that its future success is assured. Every liability that hung threat eningly over the association and over the heads of its members has been removed. The books of the association on Decem ber 1 showed a net profit of $772.28 had been learned since August 1, in spite of all the numerous handicaps that had to be overcome, and the unprecedentedly low per centage of gross profits charged on the goods. It is in place here to explain that one of the most dangerous matters threaten ing the association with total annihilation and with a consequent heavy loss to its members individually, was the lease for the building secured by monthly "rent notes" for $90 each. The officers of the association learned that the holder of the notes would in all probability lose title to the building. The great danger that threat ened the association and its members was that he would dispose of the notes to some one else, who, in law, would have been held to be an "innocent holder," and then noth ing eould have saved us from having to pay the notes, as the law would have held each member individually liable. It was therefore decided to do the "watchful waiting" act until the holder of the purchase contract would enforce its terms and acquire title to the building, by which act the lease held by the association would become invalid, and then immedi ately start an injunction suit against the holder of the notes to prevent him from disposing of them, and compelling him to surrender them. This was done and in all this we were successful, except for six notes that had fallen into the hands of an "in nocent holder," but the other forty-six notes, amounting to $4,140, were recovered. This affair cost the association, including court costs and lawyer's fees, in round numbers $600, which, of course, reduces the profits earned up to December 1 to about $172. BOARD OF DIRECTORS, C. G. Hutchisson, President, F. O. Immler, Sec'y-Treas., Workingman's Co-operative Ass'n, Mobile, Ala. AT LEWISTON, IDAHO I have yours of the 8th instant contain ing sample sheet of your monthly paper for locals. I think this is a fine idea. Have now gotten prices on the local print ing for the first page, and can get it done for not to exceed $4.50 for 500, and I am sure we can make this go. This is certainly the thing we have been looking for for some time. We are not linked up with any central organization and need to in the worst kind of way, but we are going to be mighty careful who we link up with, for once stung ought to hold us for a spell. Have be_en very much impressed with the plans laid down in the convention at Cincinnati, and hope soon to see district adviser at Spokane for Eastern Washington and Northern Idaho, which would be our ter ritory. R. H. SALTER, Lewiston Co-operative Store, December 15, 1920. Lewiston, Idaho. 32 CO-OPERATION (The monthly paper for locals referred to is "The Associated Magazine," which The League prepares for local societies. The paper consists of three printed pages, containing original articles and news col- lected_ by our national service. The first page is left blank for local news to be sup plied by the societies themselves. The magazine is usually given a distinctive name, like "The Lewiston Co-operator.") AT SAYRE, PENNSYLVANIA In brief terms let me say what I have tried to do since I came to Sayre. I found the following conditions prevailing in the Valley Co-operative Store I was called to manage: There were too many employees. The store was badly arranged. It maintained an expensive delivery system. Dividends were paid that had not been earned. The employees were unfamiliar with Co operation. There was waste, uncleanli- ness and bad buying. The store had gone into debt to the extent of $6,000, due to overbuying and bad management. The im pression had been given the members that the interest on their money invested was a factor in reducing their living costs. At the end of three months, the fol lowing results have been attained by hard work and co-operation of all the members with the new manager: 1. The number of employees has been reduced from five to three. 2. Deliveries are now made only three times a week, and no orders under $2 are delivered unless a ten-cent charge is paid. 3. No dividends and no interest on cap ital are to be paid until the store is out of debt. 4. The railroad unions were visited, and a lecture was given on the Re lationship of Organized Labor to the Co-operative Movement. A study class was formed among commit tees of unions and interested mem bers. 5. A Woman's Club was organized, with a membership of about forty women, ten per cent, of whom have taken shares in their own name. They also take an active part in getting up programs. Store Com mittee, Grievance Committee, and Entertainment Committee meet twice a month. The committees are active among women members. 6. Two women members were elected to the Board of Directors. 7. We cut the overhead from 17 to about 12 per cent. 8. We cut out considerable waste. 9. We confine the buying to fewer wholesale houses and buy in case lots only. 10. Brought the prices down to the average grocer in town, reviving in terest among many who had lost heart. 11. We are trying to educate the mem bership on what loyalty means. Valley Co-operative Association. MARTIN WEBER, Manager. AT SEATTLE, WASHINGTON I find that there is a demand for your publication, CO-OPERATION, in the Pub lic Library. Would say, that along with one or two others, I am drawing attention of the Librarians to CO-OPERATION. The last Co-operative Convention has done much to clarify opinion here in Se attle. I am assured that it is being given wide notice and approval. Probably you to some extent realize what we have had to live down by the failure of the Consumers,' and it is the general opinion of us all that if we can pull through this unemployment crisis, we are practically made. I would also like to draw your attention to the work done by our Educational Department. I am happy to say that the end_ of the year finds us in a wonderful position so far as our Woman's Work is concerned. We have now operating six district clubs, where we hold meetings every two weeks, with a Federated Club Meeting every Fri day in the ladies' rest room, where we serve tea, and always have a good speaker. In this way we get many new purchasers, as often after the club meeting most of those present make their purchases at our counters. We have also held a small Christmas fair, raising the sum of $150. Of this we used $100 to help build up our Woman's Exchange, in this way introducing the Dry Goods Department to our society. The remaining $50 we used in buying china, etc., for use in the social work of our clubs. Then we have had a wonderful Christmas ball. The one result of this party has been that I have every day several re quests that we arrange another as soon as possible. The general opinion in Seattle is that in the Labor Movement we do not play enough. And I think that if the co- operators- can in the s_ocial way bind our people together, we will be accomplishing a great thing. Co-operative Food Products Association. DORA HAYWARD, Seattle, Wash. CO-OPERATION A magazine to spread the knowledge of means whereby the people, in voluntary organization, produce and distribute for their own use the things they need JAMES PETER WARBASSE, Editor. VOL. VII. MARCH, 1921 No 3 VITAL ISSUES All readers of CO-OPERATION should ask Libraries to subscribe to CO-OPER ATION. This will promote the Movement in your town. MUNICSPALIZATION OR CO OPERATION The co-operators of England are advocating and working to have the towns and cities take charge of milk distribution and run it as a munici pal enterprise. Perhaps, it would be more correct to say that members of co-operative societies are doing this; because it cannot be consis tently said of co-operators. Still some societies as a whole are going so far as to pass resolutions favor ing this procedure. The English are politically minded. The astounding thing is that they have made such good headway with co-operation and such small progress with politics. True they have gotten farther in having a democratic form of govern ment than we have; but there are few co-operative societies in the United States, that would advocate giving over the milk distribution to the politicans when the co-opera tive society itself could perform that service. If there is any one thing that co- operators should not desire relin quished to the government, it is the distribution of this most essential food. There may be some ground for co-operators hesitating to handle railroads, post offices, and ship yards; but milk—it belongs with the very sustenance of our movement. The societies of Switzerland and other European countries have un dertaken milk distribution with ex cellent success. In our own country, several of the societies in Massachu setts are dealing in this commodity, taking milk from the farms, passing it along to their members, and see ing that they get milk that is safe for their babies at a lower price than unsafe milk would cost from private dealers. During the last six months the United Co-operative Society, a New England federation of distribu tive societies, distributed milk as fol lows at the following branches: At Maynard, 184,000 quarts; at Worcester 252,000 quarts; at Nor wood 166,000 quarts and at Fitch- burg 307,000 quarts, making a total of nearly 1,000,000 quarts. Our societies are small, new and struggling along in one of the most difficult co-operative fields in the world. But they are distributing milk, and the hope is that more and more societies will undertake this necessary work. Let us understand this matter once and for all: the purpose of co operation is to perform all social functions; anything that can be done by the socialized state can be done by the people in their co-opera tive societies excepting those things which require coercion by force. Timid co-operators think of certain large operations as capable of ex ecution only by the government. That is because the government is large and can undertake at once large things. Some day co-opera tion will be large. The things it does are always arrived at by build ing upon small beginnings. But co operation has travelled from the little store in Toad Lane to the British Wholesale Society on Bal loon Street, and the difference be tween those two institutions is not so great as the difference between the British Wholesale and the biggest productive or distributive undertak ing that any government attempts. 34 CO-OPERATION CO-OPERATION 35 LABOR KNAVES AND DUPES In a city in New York State a young man has appeared as the edi tor of the labor paper, and his earn estness and ability proclaim him the leader of labor of that town. He was recently approached by a "co operative" organization, which is opening a chain of stores through out the state, and a suggestion of a nice reward was made to him to "deliver" the trade unionists of his town. He turned down the offer because the mere proposition con vinced him that it was a crooked game. He was right; it was one of the usual commercial humbugs that is getting the workers' money under the pretense of being co-opera tive. But what are we to suspect of the many other towns in New York State where the working people upon the advice of their labor lead ers are putting their money into this same thing? In an Illinois city, the Federation of Labor was advised by The Co operative League a year ago that the National Co-operative Associa tion (Wholesale) was unsound and dangerous to the Labor Movement. We gave its leaders detailed and specific information. They knew the information was sound. They thanked us for it. Then something happened. A Committee on Co-op eration was appointed. The Federa tion of Labor proceeded to white washing this utterly hopeless organ ization and asked the working peo ple to put their money into it. It was endorsed in their labor paper. To detract attention from the brazen imposition which was being perpet rated upon the working people by the "wholesale," attacks were made upon The League and its officers who had nothing to do with the case. This same Federation of La bor kept on endorsing the undertak ing, and working people were put ting their money into it, even after it had gone into the hands of a re ceiver, and the money of the workers was known to be lost. In the February number of this magazine was published the news of another "co-operative" organizer, O'Brien, who defrauded the workers of Fitchburg, Mass., out of $10,000 in January. In August of the pre vious year, The League had inves tigated this man, published the in formation in this magazine, and re ported his name, address, places of action and methods to the American Federation of Labor, and to the New England Labor bodies. We told them what he had done in New Bed ford and begged them to warn Labor against him. Did they do anything about it? Yes, their labor leaders of New England gave him creden tials and every aid that a second story man could ask in his noble work of robbing the working people and discrediting the Co-operative Movement. This man looted the workers in several New England towns; and the jimmy that he used to crack open the job was labor cre dentials. He is now in jail awaiting trial. We have twice published the in formation about one Davis, operat ing in the Southern States. The loyalty of a few railroad men who got in touch with The League saved Labor in Tenessee thousands of dol lars. In the end, when this chap found that he had gotten as far as he could, he took $5,000 cash and the automobile of a Nashville so ciety and departed. He has been caught and sentenced to eight years in prison. This sort of thing is going on all over the country. Labor creden tials seem to be easily obtained. The Co-operative Wholesale Society, of St. Paul, which has just gone into the hands of a receiver, had splen did Labor endorsements although the League has been warning labor bodies and co-operative societies about it for nearly two years. One of these organizations on the Pacific Coast boasts of having the secretary of the State Federation of Labor as one of its members. A Central Federation of Labor in a Connecticut city recently had a speaker address a meeting on Co operation who then and there took money as subscriptions to start a store, disappeared with the money and never was seen again. There are two kinds of labor lead ers who figure in delivering over the money of working people to fraudulent, spurious, and unsound co-operative enterprises: the knaves and the dupes. We advise the dupes to watch out lest Labor, as it learns the facts, classifies them with the knaves. THE PRICE THE PEOPLE PAY The prevalent economic system is pretty expensive. The poor fellows whose bodies are now coming back from Europe by the ship load do not know it. But the crippled and maimed know. And those who have suffered the demoralizing effects of war know. They have learned that organized wholesale murder is not the noble business their govern ments told them. The splendid pa triots of the United States Shipping Board, who let two billions of money go into the pockets of profiteers, seem highly satisfied. But the rest of us have to keep on paying the price for an economic system which makes wars necessary. The farmers are facing a loss in the returns from their crops of between six and ten billion dollars. The in come some of the farmers are going to get for their produce will about half pay for putting in the seeds and harvesting the crops. Now comes the report from Brad- street's that 1,895 firms failed last January with liabilities of $52,136,- 631, as against 569 failures in Jan uary of the preceding year, with $7,240,000 liabilities. These bankrupts are little fel lows. The big ones are doing well. Unemployment is increasing in every part of the country. The most striking news on the front pages of the metropolitan dailies is the news of robberies, hold-ups and murders. Every day in New York, on the streets, in houses, in broad day light, peope are being held up, thugged, and robbed. The police suppress much of the news of these things, but some of it leaks through into the papers. An average of three human beings a week are being lynched by mobs. Just why the peo ple- of Russia are not organizing a commission to come over here, or a military expedition to come to the United States and restore order is a mystery. The present business system offers no solution nor hope. Its plan is to go ahead and let every fellow get all he can. Unless the co-operative method of distribution and produc tion is adopted, what we have of civilization is destined to go down in a welter of moral bankruptcy. We can have the co-operative method by building up slowly and substantially the many consumers' societies scattered over the country. Among these societies there is no increase of failures; only the weak societies which have violated the fundamental rules are going down. The wholesales are doing well. The Central States Co-operative Wholesale after making its annual inventory has sent us the gratifying news that they will be able to dis tribute a 5 per cent, dividend among their Rochdale society members. It does a monthly business of $300,- 000. This is an indication that the Central States Wholesale is being run on sound business principles if it is able to earn substantial dividend in these days. Falling prices have made havoc among the private stores, while the industrial depres sion contributed to the falling off in sales. The mushroom "co-oper atives" which confine their busi ness to juggling money their "or ganizers" bring in are allied with profiteering business, and go down with it. 36 CO-OPERATION CO-OPERATION 37 CO-OPERATION IN MISSOURI THE CO-OPERATIVE LEAGUE OF MISSOURI The co-operative societies of the State of Missouri have held a con vention and formed a district league under the name of the Co-opera tive League of Missouri. A consti tution was adopted which is the model constitution for district leagues recommended by the Second American Convention and by The Co-operative League of America. The Co-operative League of Mis souri is the first district league to adopt the model constitution. This was done at a state convention, held three weeks after the national con vention at Cincinnati at which the model constitution was framed. Such quick action had not been ex pected in any part of the United States, but Missouri has been shown how to proceed, and Missouri now shows the rest of the states the way. This action unites the Missouri League to The Co-operative League of America. We shall have a great and a powerful Co-operative Move ment in this country when the so cieties of each of the states of the Union are federated in The League. The State Federation of Labor has furnished valuable leadership in this work. This group of societies had gone astray, as is so common. But now they have gotten rid of their false advisers with imprac tical schemes and have cast out the self-seekers, and started right. It is greatly to their credit that they have taken this drastic action and now demand the standard and clean form of Co-operation. The American Co-operative Asso ciation, under the leadership of J. I. Sheppard and A. A. Ash, at the Ft. Scott convention in 1919, refused to endorse The C. L. A. Opposition to The League is becoming recog nized as a sure sign of unsound- ness. PROCEEDINGS of the FIRST ANNUAL CONVENTION of the CO-OPERATIVE LEAGUE OF MISSOURI Held at Labor Headquarters, Brook- field, Missouri, December 6, 1920 ACCREDITED DELEGATES J. M. Lehman, Joplin Co-operative Association, Joplin, Mo. James W. Miller, Miller County Co operative Association, Eldon, Mo. John C. Dieterich, Marceline Co operative Association, Marcel ine, Mo. L. E. Shelton, Marceline Co-opera tive Association, Marceline, Mo. W. E. Wade, Joplin Co-operative Association, Joplin, Mo. A. S. Brewer, Hannibal Co-operative Society, Hannibal, Mo. R. T. Wood, Springfield Co-opera tive Association, Springfield, Mo. W. E. Kindorf, Labor Publishing Company, St. Louis, Mo. D. L. Richards, Co-operative League of Brookfield, Brookfield, Mo. A. W. Warinner, Co-operative League of Brookfield, Brook- field, Mo. Geo. R. Patterson, American Co operative Union, St. Louis, Mo. F. W. Brand, American Co-opera tive Association, St. Jeseph, Mo. J. W. Canote, Hannibal Co-opera tive Society, Hannibal, Mo. Wm. Kunkler, Marceline Co-opera tive Association, Marceline, Mo. The Convention was called to or der at 10:30 a. m. by Delegate Richards, of Brookfield, who wel comed the delegates in the name of the Co-operative League of Brook- field. REPORT OF THE PRESIDENT GEORGE R. PATTERSON Officers and Delegates: It is with pleasure that we may review the results of the past year's effort in establishing the Co-operative Move ment in Missouri. True, we have met with many obstacles that had to be overcome, and our work has been obstructed by some who have endeavored to turn the enthusiasm of our first convention into private gain; but I believe that by taking the prompt action that we did in sending out the letter warning the people of those whom I believe had ulterior motives in coming into the Co-operative Movement, we have saved the movement from fur ther set-backs in this state by the scheming enemy who would bring about its downfall. We have had some failures in the past year, but every movement, having for its pur pose the advancement of the cause of humanity, is halted now and again. These failures are not al ways without their compensations since they better enable us to re alize our shortcomings and to set about correcting them. We must devise ways and means to aid and assist those societies that are now organized so as to minimize, as far as possible, further failures. The lack of efficient bookkeeping and ac counting, over buying, and too large an operating expense in proportion to the business done, has caused most of the failures and woes of the stores in this state. The profiteers who have exploited the workers these many years, and especially so in the last few years, are now demanding of the workers greater production and longer hours of labor. This is sure to bring on more strikes, with added suffering and misery being inflicted, some times blood-shed as well. In the face of all this, the men and women in the Co-operative Movement see, not only the cause of these evils, and sympathize with the suffering people, but they also know positively what the remedy is. They see in the great Co-operative Move ment the instrumentality through which this wrong, misery, strife, and death will be minimized in the largest degree possible; through which these evils will continue to be reduced still more; and at the same time the people will be build ing up the organization that will finally end these wrongs altogether through their common ownership and control of the industries neces sary to produce the things that the human family needs, and through supplying these things to themselves by means of their own wholesale and retail stores. When that time comes, we will establish the kind of working con ditions that will be most safe, healthful and pleasant; hours that will make possible the production of everything that the people need for use and at the same time not require men and women to work more than they should. OUR PLEDGE TO LABOR Our Co-operative Movement in this state is composed, to a large degree, of men and women of the Trade Union Movement and the railroad organizations. Therefore, I believe it only fitting in this hour of trial and stress that we should declare our allegiance to the bona- fide Labor Movement of our coun try and pledge ourselves to assist it in every way that we can. To that end, I would recommend that we pledge ourselves to sup port the bona fide labor organiza tions of working men and women that are affiliated with the regular Labor Movement in every struggle in which we find them engaged, in an effort to either maintain the standards that they have already established or to improve those standards, and where strikes are on, our societies will use their means of publicity, our moral, political, financial and every other influence that we have, to the best of our ability in helping them to win. 38 CO-OPERATION CO-OPERATION 39 I would recommend that we fur ther declare that every man and woman that works for our affiliated societies and association, must be a union man or woman wherever there is an organization that has jurisdiction over the work that they perform. I would recommend also that we peldge ourselves to give union label goods the preference in our busi ness and that we handle and sell those goods to the exclusion of all others wherever possible, and that we further pledge ourselves to as sist the Trade Union Movement in conducting a campaign of education to the end that at as early a date as possible, no non-union goods will be used by any union man or woman. I would recommend that we fur ther declare that we will assist the bona-fide Trade Union Movement and Farmers' organizations in the securing of such legislative enact ments as will better protect their interests and that on the political field, we will oppose every enemy of our movement and support only the men and women who satisfy us that they will support and work for every measure that the workers, through their bona-fide labor organizations, are striving to secure. THE NEED OP PUBLICITY It is important at this time that the various co-operative societies in the State arrange with the local Labor papers in their respective dis tricts to publish such articles and in formation as will be of assistance to their membership and others who may become interested in the move ment. In a great constructive work such as ours, an immense work of education must be done, as the Co operative Movement in its logical development must eliminate every profiteer and parasite. It naturally follows that those elements that stand in danger of being eliminated will do all in their power to disrupt our movement; so in order to offset the fake propaganda of our ene mies, it is necessary that we should print the facts in the case, from the point of view of the Co-operator. SHOULD HAVE EXHIBIT AT STATE FAIR As another means of publicity and disseminating information that will have educational value for the Co-operative Movement, I would recommend that the incoming of ficers of this organization be in structed to take up the question with the officers of the Missouri State Federation of Labor of join ing with them in securing a booth at the Missouri State Fair at Se- dalia each year, and in connection with the rest of the Labor Move ment to plan an exhibit in that booth of goods manufactured by the Co-operative Movement and such other exhibits and literature as will best help our cause. THE QUESTION OP FINANCIAL SUP PORT TO A STATE MOVEMENT This convention should take up the question of financing a state wide organization and the placing of an organizer in the field, who may be called upon, from time to time, for information and assistance by the affiliated societies, and who will help in the formation of new societies and spread such propa ganda as will best help our move ment. SOCIAL FUNCTIONS OF THE CO OPERATIVE MOVEMENT This is a feature of the Co-opera tive Movement which should be es tablished as soon as the various so cieties can do so. They should es tablish headquarters or reading rooms, where members congregate, where they may secure literature, books and newspapers dealing with the problems of humanity, but par ticularly in relation to the Co-opera tive Movement. This will tend to bring the membership in touch with each other more often than the quarterly or bi-annual meeting of the societies. In every country in the world, the quarterly or bi-annual meetings of the stockholders at which official reports of the progress of the so cieties are made, are usually held in the summertime, so as to have an outing for a day or two, a sort of a picnic in which all the members and their families and friends and those interested gather. Usually they take advantage of the occasion to distribute literature and to have good speakers address the gather ings. CONCLUSION In conclusion I desire to say that while the movement in this State has not made the progress it should, we could hardly expect more with the form of organization we had. The American Co-operative Association had no funds with which to func tion, so the great part of the work done in the past year was done at the expense of the Missouri State Federation of Labor and the Rail road Brotherhoods. I desire to thank the officers and members of these organizations for the support and assistance given us and I trust that the day is not far distant when the Co-operative Movement of this State and nation will be able to give asistance to these organizations in their time of need. I also wish to thank Secretary-Treasurer Brand for the loyal assistance given me in this work, and the officers and mem bers of the co-operative societies in the State. I trust that the deliberations of this convention will bring us closer together, endear us to one another and to our movement and inspire each of us to work harder and more unselfishly for its upbuilding, and that the coming year will register great achievements for our move ment, for if we stick right at the job every minute, we can put Greed off watch and can enthrone Liberty and Justice and Human Brotherhood in its stead. REPORT OF SECRETARY-TREASURER F. W. BRAND Officers and Delegates: As it was generally known to all delegates who attended the last Co-operative Convention, held at Fort Scott, Kan sas, December 8th and 9th, 1919, the Assistant Secretary was to carry on the active duties of this office; therefore, I have only a brief report to submit for your consideration. Immediately upon adjournment of the last convention the officers of the Association held a confer ence and talked over the future needs of the movement and the sup plies needed to carry on an active campaign, through correspondence, for the betterment of the movement in this District. It was Assistant Secretary J. I. Sheppard's belief that a large supply of stationery would be necessary, therefore, I was instructed to have an appropriate cut made to be used on same. I was also instructed to order 10,000 printed letter-heads, 10,000 plain letter-heads and 10,000 envelopes, and send the bill to Mr. Sheppard. The bill for the cut and printing amounted to $113.75. I have been informed by Treasurer, Leonard Wilane, that on February 29th, 1920, he forwarded to Assistant Sec retary Sheppard the balance of the funds of the Association, amounting to $79.00, which Mr. Sheppard for warded to me together with addi tional funds to pay the printing bill and expense of cut. This stationery was all forwarded to the Assistant Secretary at Fort Scott with the exception of a few hundred sheets supplied President Patterson and a like number main tained for my own use. On account of the interest and enthusiasm aroused at our last con vention, quite a number of inquiries from different sections of the State, for information as to the manner and methods to proceed to form a co-operative society have been re- 40 CO-OPEKATION CO-OPEKATION 41 ceived, all of which have been re ferred to the Assistant Secretary. As to the manner in which they have been handled, I could not say. During the period up to June 29th, 1920, I had received a few communications from Mr. Sheppard and not one of them appeared on stationery of the American Co-op erative Association, but on letter heads of the Peoples' College of Fort Scott, Kansas. On my return from the A. F. of L. Convention, the latter part of June, I wrote Mr. Sheppard in re gard to the coming convention which was to be held on the second Monday of July, 1920, from which I received the following reply: (On Letter-head of Peoples' College) Port Scott, Kans., June 30, 1920 F. W. Brand, Secretary, Missouri State Federation of Labor, Eoms 5 and 6, Both Building, St. Joseph, Mo. Dear Frank: • As you know our big general store burned six weeks ago and we have not yet been able to get pulled together and open in anything except a small place that we are running. It will take us six weeks more before we are in operation with our store and our bank and trust company. Our folks have thought it wise to post pone the holding of our Co-operative Con vention, which was to have been here on the second Monday in June, until the second Monday in September. At that time we will be all ready to do business in a big way. I am sure from what I have heard from over the country that we will have a big attendance at the convention in Sep tember. I have waited until this late in the hope that we could get ready to receive the delegates and take care of them. I wish you folks would get out a letter to your local organizations in Missouri, notify ing them of the postponement of this con vention until the second Monday in Sep tember. We are making big growth all over our Western country here in the way of Co operative Stores and I know we will make wonderful progress at the September Con vention. Your friend, (Signed) J. I. SHEPPARD, President. After receiving this reply from Mr. Sheppard which was read be fore the Executive Board meeting of the Missouri State Federation of Labor, held at Kansas City, July 2nd, 1920, and after considerable discussion by the Board members in regard to different stories being cir culated as to Mr. Sheppard and Mr. Ash and the Co-operative Move ment, a motion prevailed to instruct President Patterson and Secretary Brand to proceed to Fort Scott, Kans., at an early date and make a thorough investigation of the situa tion. In the mean time the officers of the Association prepared a letter under date of July 12, 1920, which was mailed to all affiliated organiza tions of the Federation, together with all co-operative societies in Missouri, announcing the postpone ment of the Co-operative Conven tion to some future date. On August 8th, 1920, President Patterson and myself proceeded to Fort Scott to make the investigation as instructed by the Executive Board of the Federation; and upon inves tigation we were thoroughly con vinced that the stories being circu lated in regard to Mr. Sheppard and Mr. Ash were justified; therefore, on our return home the following letter which is self-explanatory of our action, was prepared and mailed to all affiliated organizations of the Federation and also co-opera tive associations and societies in Missouri: St. Joseph, Mo., Sept. 3, 1920. To All Affiliated Organizations of the Mis souri State Federation of Labor and Co operative Association in Missouri, Greeting: After sending out letter under date of July 12th, 1920, announcing postponement of the American Co-operative Association convention to some future date, the under signed officers of the Association, after hearing numerous stories and receiving several complaints in regard to Mr. J. I. Sheppard, Assistant Secretary of the Asso ciation and Mr. Ashley A. Ash, of Fort Scott, Kans., we decided that a thorough investigation was necessary and set August 8th for a meeting in Fort Scott, notifying Vice-President Chas. Hamlin and Treasurer Leonard Wilane of the meeting and date, requesting them to be present; but for some unknown reason to us we have failed to receive any reply from them. A week after our return Mr. Wilane wrote Presi dent Patterson a letter stating that it was impossible for him to be present on account of business. Upon personal investigation we discov ered that Mr. J. I. Sheppard had failed to act as Assistant Secretary of the Associa tion, according to his own statement had not carried on correspondence pertaining to the Co-operative Movement on stationery provided for the American Co-operative Association, but had used stationery ad vertising the Peoples' College of Fort Scott, Kansas. Mr. Sheppard also admits that he does not know what his "bosom friend," Mr. Ashley A. Ash, is doing along the lines of the American Co-operative Association, and at the same time Mr. Ash has repre sented himself to be General Manager of a chain of co-operative stores in the vicinity of Fort Scott. Upon questioning Mr. Ash, he states that he has no knowledge of what Mr. Shepperd is doing to advance the American Co-operative Association and does not receive any orders from him in regard to the movement. It appears to the undersigned that Mr. J. I. Sheppard, Assistant Secretary of the American Co-operative Association, and Mr. Ashley A. Ash, of Fort Scott, Kansas, have capitalized the enthusiasm derived from our Co-operative Convention last December into private schemes for their own personal benefit, also to advance a so-called co operative bank and wholesale house in Fort Scott, Kansas, which we understand from information received from Mr. Sheppard and Mr. Ash will be owned and controlled by bankers of Pittsburg, Kansas. • You are hereby notified that Mr. J. I. Sheppard is no longer Assistant Secretary of the American Co-operative Association at Fort Scott, Kansas, nor connected with it in any capacity. Mr. Ashley A. Ash has never been identified with the Ameri can Co-operative Association and his ac tivities have been along the lines of a free lance in the Co-operative Movement. The American Co-operative Association must be made to function for the purpose for which it was organized. We may have a hard fight with conditions which we are forced to contend with, but it is necessary that we remain steadfast in our determina tion to succeed. The results may be small at first but with each succeeding year our Movement will be more firmly established so that this and future generations may profit by successful Co-operation. In the future any organization that may desire to form a co-operation association and wishes information on how to proceed, the undersigned will be glad to lend aid and furnish speakers. With best wishes for the continued suc cess of the Co-operative Movement, we re main, Yours for co-operation, GEO. R. PATTERSON, Pres., F. W. Brand, Secretary, American Co-operative Ass'n. At the following executive board meeting of the Missouri State Fed eration of Labor, President Patter- son made a report of sending out the foregoing letter which was ap proved. The district advisor of the Co operative League of America, Mr. A. W. Warinner, of Brookfield, be ing present was granted the privi lege of the floor. He talked at some length upon the future needs of the Co-operative Movement and the ne cessity of federating the different local co-operative societies in Mis souri to obtain the best possible re sults ; after which the President and Secretary were instructed to send out a convention call which is re sponsible for this gathering here to day. The question of making some sorely needed amendments to the co-operative laws of Missouri was next taken up; and, after a lengthy discussion by the delegates present, it was moved and seconded that a Legislative Committee of three be appointed by the chair to digest thoroughly the present co-operative law in Missouri, to draft amend ments to correct its deficiencies, and to take the necessary steps in con junction with the Legislative Com mittee of the State Federation of Labor and the four Railway Broth erhoods to secure the passage of these amendments. Motion carried. Delegates Brewer, Wade, Shelton and Warinner talked at some length on the subject of standardization of methods and accounting, after which a motion prevailed that the chair appoint a committee of three to go into the details of the sub ject and report their recommenda tions to the next convention. Mo tion carried. AFTERNOON SESSION The matter of forming a state or ganization, federating the various co-operative societies of Missouri, was taken up. Delegates Canote, Warinner and Wood addressed the convention on this subject; after which a motion was made to form a State organization to be known as the Missouri State Co-operative 42 CO-OPERATION CO-OPERATION 43 League. After considerable discus sion an amendment to the motion was offered by Warinner and sec onded by Canote that the society be known as the Co-operative League of Missouri, and that we pledge ourselves to affiliate with the Co-operative League of America as soon as our funds permit. Amend ment carried. Delegate Warinner then read a copy of the by-laws recommended by the Second National Co-opera tive Convention for affiliated dis trict leagues, after which he moved adoption of the same. This motion was objected to on the grounds that one reading of the by-laws was not sufficient to give the delegates an opportunity to gain a clear understanding of what they were voting for, and after some dis cussion it was moved and seconded that they be read section by section and each section disposed of before proceeding to the next. Motion carried. EVENING SESSION Delegate Warinner continued read ing by-laws. It was then moved and seconded that the by-laws be adopted as a whole as amended by this organiza tion. Motion carried. The next order of business taken up was the election of officers for the new organization for the ensu ing two years and provided in the by-laws. In as much as these by laws provide for seven directors and four alternates it was moved and seconded that we place eleven names in nomination and that the seven names receiving the highest number of votes be declared elected, the other four to serve as alternates. Motion carried. Patterson, Wood, Canote, Warinner, Shelton, Miller, Lehman, Brittingham, Mullalay, Leslie, and Dietz were placed in nomination. Upon taking the vote it was found that Geo. R. Patterson of St. Louis, R. T. Wood of Springfield, J. W. Canote of Hannibal, A. W. Warin ner of Brookfield, L. E. Shelton of Marceline, J. W. Miller of Eldon and J. M. Lehman of Joplin were elected directors and Brittingham, Mullalay, Leslie and Dietz were elected alternates. The question of the methods to be pursued in aiding new societies was then taken up and discussed by the delegates present. Delegate Canote spoke on the subject, of the necessity of educating the rank and file of the membership of the society to a better understanding of the true principles and ideals of Roch dale Co-operation. President Wood of the State Fed eration of Labor spoke with refer ence to raising a fund sufficient for immediate needs after which a mo tion was made and seconded that we take up a free will offering to provide this fund, Brother Wood stating that the State Federation of Labor would start it with a dona tion of $20.00. This was objected to upon the grounds that a large majority of the audience were mem bers of the Co-operative League of Brookfield and this would result in working an injustice and hardship on that society and a suggestion was made that the delegates go back home and try to prevail upon con stituent member societies to- pay their first year's dues immediately. In as much as the Hannibal society stated that they were prepared to pay their dues before returning home and the State Federation to make its donation immediately it was decided to adopt this plan. Store problems were then dis cussed at some length by Manager Mason of Marceline and delegate Miller of Eldon. Delegate Warinner called the at tention of the convention to the recommendation which President Patterson had made in his report covering the necessities for greater publicity of the Co-operative Move ment. Delegate Kindorf, represent ing the Labor Publishing Company of St. Louis, spoke on this subject, offering some very helpful sugges tions. It was moved and seconded that a copy of the proceedings of this con vention and a copy of the by-laws be mailed to all co-operative societies in Missouri. Feeling that the Co-operative League of Missouri would amply cover the field with its activities the officers and members of the North Missouri Co-operative Association have decided to disband that organ ization and devote their talents and energies toward the further promo tion of the state organization and they offered to turn over the funds still remaining in their treasury to this organization which was ac cepted with thanks. Motion made and seconded that the convention adjourn sine die sub ject to the call of the board of di rectors. Motion carried. Immediately after the adjourn ment of the convention a meeting of the board of directors was held at which the following officers were elected; President, Geo. R. Patter- son; Secretary, A. W. Warinner; Treasurer, L. E. Shelton. W. E. Kindorf was then appointed Educa tional Secretary but it was decided that for the present we would dis pense with an Executive Board, the officers of the Board of Directors to serve in that capacity. REPORTS OF SOCIETIES Following are reports from some of the Missouri societies. Three affiliated societies, from which re ports were not received, are the Sedalia, having a membership of 300, and doing an annual business of $60,000; the Trenton Co-operative Mercantile Co., with a membership of 200, which does a yearly business of $72,000; and the Joplin Co- oper ative Association. Missouri has been retarded by false leadership and failure to con nect with The Co-operative League of America. The League has now put a District Adviser in the field, and the next reports from Missouri should show results. COMPETITION WITH PRIVATE BUSINESS: HOW TO MEET IT [The following is part of the con tribution of J. W. Canote, Presi dent of the Hannibal Co-operative Society, Hannibal, Mo., to the Sec ond American Co-operative Conven tion at Cincinnati. This society was organized in 1919 by railroad men, and is laying the foundation for a sound co-operative movement in Han nibal. It is doing a monthly busi ness of something over $12,000.] We find in our town that a great campaign is being carried on among the chain stores and our other keen competitors. The aim of all of them is to under-sell. It is the general idea that the Co-operative Move ment is going to undersell, but we do not do that. We should not let that idea become prevalent. Our competitors start the battle in most of the localities by showing that we are not "cheap stores." We should not claim to be "cheap stores." We should be good stores and fair stores, but not "cheap stores." But we must at least have prices which compare favorably with those of our competitors. It is most important that we know the short-weight tricks of our com petitors. We find a competitor of ours, a few doors away, for example, selling grapes at 45 cents a basket for which we pay 43 cents a basket. This neighbor of ours does it in this way: he takes the lid off, takes out two pounds of grapes and places the basket on the market for 45 cents. And here we are with 43 cent grapes that we will have to sell for 45 cents to compete with the man selling for 45 cents. They do the same with plums and various other articles. These are the things that come up in ordinary retail busi ness. Now, what are you going to do about it? No doubt you have this same problem in every town. Most cities have what is known as a Weights and Measure Depart ment, or a Bureau of Standards. This branch of the municipal gov- 44 CO-OPERATION CO-OPERATION 45 ernment is naturally handled from a political standpoint, and it is im possible to get a policeman to arrest a man who has any political in fluence. An officer to-day will not arrest a man who controls any con siderable number of votes. If he does arrest such a person, he is go ing to be dismissed or disciplined. We all know that. I know police men who say, "I cannot arrest that fellow because if I did, I would lose my job." So in our town we ap pear before the City Council and ad dress the Mayor and tell him that we have something to be discussed. The laws provide that this has to be put in print, and we ask the Mayor to institute proceedings against cer tain people who are giving short weights and measures. When the paper appears the next morning, it tells we appeared before the City Council and what our charges were, the shortage in weight, etc. You would be,surprised to see how many people come in and ask about it dur ing the course of the day. This is one of our methods of exposing the crookedness of our competitors. We must educate the public to weigh their goods. I would suggest that members of the co-operative societies also weigh their goods, for fear some manager gets enthusiastic and wants to create a big dividend by giving short weights. You must always insist that a man gets just what he buys—no more and no less. Our competitors have what they call "Saturday Specials." These are advertised on Sunday. We have the privilege of putting anything in the Sunday paper of an advertising na ture ; and we always do a little edu cating and mention some of those things, such as, "We suggest that you gauge and measure all of your 'Saturday Specials.' " On a recent Friday evening a paper came out advertising pota toes for one of our competitors at 75 cents a peck; then he found that we were quoting at 70 cents. So he put an advertisement in the paper quoting at 65 cents a peck, after putting it in the paper the night before for 75 cents. I personally investigated his potato sale. I got a disinterested person, not in the Movement, but a friend of mine, to go in and buy a peck of those pota toes at 65 cents. He weighed the potatoes out and turned over the peck; and I got the bag weighed by the merchant who informed me that that package weighed 12 Ib. 4 oz. Then I sent for another peck, and it weighed 12 Ib. 8 oz. When we closed Saturday night we called for a police officer, and I said, "We have two packages of potatoes here and I want them locked up"; and so he locked them up. Then I told him, "We want those packages weighed and sealed by your depart ment"; and he did it. (A peck of potatoes should weigh 16 Ibs.) The potatoes were weighed by the City Weights Department. Then we went to the City Attorney and told him that we had some friends complaining about the weights of these packages and that we wanted this man brought into court as he is violating the law. He did not like to do this, but we told him that we would have to come as a complain ing witness. So we had to go back and appear before the City Council again in order to get this matter in print, and the Mayor granted us the floor. In order to protect ourselves from being subject to suit for libel, we did not tell him where we got the potatoes; but we did say that if anyone was interested to come down to our store, we would tell them the name of the person selling these short weight potatoes. Then we used this potato episode for advertising purposes. The people are beginning to find out that about the only safe place to trade is at our store. The trouble is that so many strangers come in that we are selling as much goods to the people outside of our society as we are to our members. A SOCIETY THAT KNOWS THE IMPORTANCE OF EDUCATION We have not yet opened our store, for our society in Kansas City, and from what I can see I think we are lucky that we have not. Of course, I realize that most of the mistakes or disasters have been due to a lack of interest on the part of members and officers, but with a stock of goods purchased at the peak of high prices, a store could not possibly have yielded any profits anyway. I think, however, that by the time prices are stable again, and employment improves some we will be ready, although many of our po tential members are out of work, and others expect to be, and we are not gaining members very fast. We are trying for a steady and substan tial growth, and believe that by the time we have enough members .to warrant the opening of a store we will have them educated to a place where they will make it a success. The Chairman of our Educational Committee tells me that he has not yet got his committee organized well enough to give an outline of their plans, but I have asked him to advise you of them when possible to do so. We are trying this com mittee outside of the Board of Directors, with only one member of the Board on the Committee. They will work independent of the Board, but in harmony with them. The Board has asked this Committee to arrange some kind of anniversary event for the first anniversary of our organization. The Vice-President of our society and I spent the afternoon to-day visiting the stores in Kansas City. I can't figure out why it is that as soon as a bunch of people get enough money to start a store, they immediately want to hire every clerk that applies for a job. I saw one store not long ago that was do ing a business of about $1800 per week with nine employe.es, and at that the present manager had fired three. But they seem to have no idea of overhead. About the first thing I ask a manager is, "What percentage of your sales does your overhead amount to?" Not one has yet been able to answer me. Very few of them can tell what percen tage of their trade comes from non- members, what percentage their de livery costs, or any of a number of things that any man running his own business, or that should expect to make a success of some one's else business should know. And but few of them seem to be willing to give out information if they have any. I figure that the co-operative movement cannot have the success that is due it until the people who put their money in it get the idea clearly in their minds that it takes something more than money to run a business, and Co-operation is a business, and one that has more competition than any other ever started, and must be watched closer than any other. But most of them seem to have the idea that all they have to do is to put up $25 or $50 to start a store, and then forget about it. Probably half of them even want to go on trading at the corner gro cery. CHAS. SANDERS. Kansas City Co-operative Association. A CASH ASSOCIATION GIVES CREDIT The Brunswick, Mo., Cash Mer cantile Association may be taken as an average example of a small or ganization which does some things right and some things wrong. It has 182 members, $4,300 paid in capital, and does a business of $32,000 a year. It has no educa tional fund, is not a member of The League, and suffers for want of proper information and guidance. The manager is the father of the President of the Board of Directors. The following statement is illumin ating : We are running on practically a cash basis, and this town has the most liberal credit system of any place I know of, and 46 CO-OPERATION CO-OPERATION 47 that is some stumbling block, but we feel like that it cannot be helped. We let stock holders have $15 for fifteen days by sign ing a contract that they forfeit their stock to the company in default of payment. That eliminates necessity of bringing suit to col lect. People will not stick together has been our experience. We have sent our circulars, and had meetings, but it seems that for envious reasons, some of our own stockholders are the worst kickers. We have less than one fourth of our stockhold ers trading at the store, but have consider able trade from outsiders. We are at present enjoying a good busi ness, but the one mistake we made was, that, we did not have all the capital col lected in advance, as we have needed the money very badly. It seems that it. is a difficult proposi tion to get some stockholders to understand the value of trading at their store. We have spent all the money we could spare in sending out circulars calling their atten tion to the importance of loyalty. It did some good, but we are at a loss to make at least three-fourths of the members un derstand. A MODEL PRESIDENT The Miller County Association at Eldon, Mo., is named after the County, which probably takes its name from the family of James W. Miller, the president of the Asso ciation. It has 260 members, $9,500 paid in capital, and does a business of $124,000 a year. It pays interest on capital, savings-returns, and sets aside 4 per cent, of the net earnings for education. The association is a member of the Co-operative League of Missouri. The following statement from the president of the Association is a model which shows intellectual grasp of the problems of his so ciety : We have every reason to feel gratified at the progress we are making. Our store is fortunate in that it is in a small town (2,500) and is of easy access to all of its members. The majority of its members are railroad workers, and belong to their re spective labor organizations, and therefore most of them have a conception, of the eco nomic struggle going on in society, and they understand that it is only by their own collective action, Co-operation, that eco nomic freedom may be obtained. We have a number of farmers who are members, and our plans embrace a method of securing many more. We adhere to the Rochdale principles except in this one particular: credit to the extent of 75 per cent, of a member's stock ownership. Have been in operation nine months and have not lost a cent in that particular. That plan was adopted in order that pur delivery system could be maintained with out involving the necessity of either going in person and ordering and paying for merchandise, or paying the delivery boy. How we do learn by experience! We em ploy the McCaskey register, and now we are adopting the simple plan of having a member deposit the amount of his average bi-monthly bill, we issue him a credit slip for the amount, and we retain a duplicate. Each purchase made thereafter is handled by giving him a slip on which his pur chases are itemized, and the duplicate re tained by us and placed in the file with his credit slip. He is thereby not only free from debt, but is "paid in advance." The money enables us to discount our bills, and effect a saving. We are also adopting the plan of refund ing the cost of delivery to those who carry their goods. This we find appeals to the farmer, who does not like to come to town and cart his goods home and pay the same price as the man who has them delivered. Another idea that has demonstrated its vajue, is to pay the farmer the pre vailing local retail price for his eggs, if he takes it in trade. This gives us no profit on the eggs, but we get his trade and later on his membership. Of our membership of 260 we are select ing the names of 50 men who are known to 'be interested, who are staunch, who are confident, and who are willing to sacrifice; and we are inducing them to take the limit of stock, enabling us not only to show a full paid up capital, but what is of greater importance, it gives us a body of men as a nucleus who will show by their attitude that the institution is here to stay. And when a weak member wants to drop out we can give him his money. With the store run on efficient and econ omic lines, with the savings returns being left in the business, we mean to grow, and by the force of our example, and the con fidence we display and possess, together with a never ending campaign of educa tion, hasten the day when we can do our part in bringing the wholesale co-operative into existence and later on own the mills and factories, and all the means of produc tion and distribution for that matter. We have gained many ideas from the pamph lets sent by The Co-operative League of America. JAMES W. MILLER, Pres. BROOKFIELD WITHSTANDS AT TACKS In Brookfield, Mo., is a co-opera tive society organized in 1919 by railroad men who understand the importance of co-operative educa tion. Since the beginning of their organization they have been active in missionary work in neighboring towns in the interest of co-opera tion. With their help the Moscow Mills Co-operative Society was started. Realizing that their so ciety could not exist always alone, the Board of Directors gladly re leased the manager from his duties in the store to act as District Ad viser to other nearby societies. This was their contribution to the cause of Co-operation. The Co-operative League of Missouri was formed on the initiative of the Brookfield So ciety. But even the Co-operative League of Brookfield has had its difficul ties, which have risen chiefly from too rapid growth. The society has a membership of 400, and did a business of $10,800 during its first month of operation. At a rate of $1,000 a month the business in creased. This greatly increased business made necessary larger and more expensive quarters, and addi tional fixtures. But the capital stock was not coming in fast enough, due to the fact that the society allows members to pay for their shares of stock 10 per cent, down, and 10 per cent, monthly. The surest sign that the Brookfield Co-operative League is going to succeed is that the private mer chants are afraid of it, and are do ing everything in their power at this time when they are suffering from falling prices and generally unstable business conditions, to un dermine the loyalty of the mem bers of the co-operative store. However, with a Board of Directors who understand Co-operation thor oughly, an alert, competent mana ger, and a nucleous of real co-opera tors in the membership, it may be expected that the attack upon the Co-operative League of Brookfield will serve to further entrench the Co-operative Movement there. DEFECTIVE ACCOUNTING We organized the Consumers' Co operative Society; opened our store May 27, 1920; but our store at present is in the hands of a receiver, due to the lack of loyalty of mem bers, very poor management, over stocked on high priced goods. Also an audit of the books by a C. P. A. found that there is $3,800 that can not be accounted for. There is about $9,000 of unpaid stock which the receiver is going to collect. One great fault of our store is that they keep it in the labor movement. I maintain this should be a separate movement on business principles. We put too much in repair of a rented building and fixtures on recommendation of the manager of another co-operative store. A new board was elected in December last but I would not serve under the present conditions with no head to the society that has had any ex perience in business. It seems as if people are wild. The man that makes the best talk gets in, no one looking up his past record. They will soon be in a position to reorganize and I hope that some fair minded person will be there to help them get started, as this should be the best store in the city. We have several hard business competi tors, but we can succeed if we run on business principles. The Co-opera tive Movement must be separate from the Labor Movement; at least this has always been my idea of the success of Co-operation. Six of the present board are women. We have one of the -best equipped stores in the city and certainly hope we will be on our feet in the near future. Springfield, Mo. E- D- MEAD. INTERPRETATION OF LOAN CAPITAL The By-Laws of the Consumers' Co-operative Society of Springfield, Mo., contains the following inter esting section under the article on dividends: "The difference between the cost of the 48 CO-OPERATION CO-OPERATION 49 goods to the society and the price paid by the stockholders for the goods shall be known as the loan capital and will be paid to each member of the society at the expira tion of each ninety days or at the discre tion of the stockholder with any accumu lated profits from sales that may have been made to persons other than members of the society, less the operating expenses, and any fund set aside for special pur poses, approved by the members of the said society." This interpretation of "profits" has been repeatedly advocated in CO-OPERATION and was sug gested by us to the British Move ment as a means of avoiding un just taxation. We have advised many societies to adopt this word ing. It is gratifying to note that the idea has now been written into the by-laws of a society. It would be a good thing for the Movement if this idea could be universally grasped. Co-operators do not make profit out of one an other. Co-operation means mutual trading. A member of a successful society makes a purchase in his store and pays the regular retail price. His society could have sold him the goods at cost, but there are good reasons for not doing so. Instead of paying cost, he pays cost plus something more. The English call the something more "profit." It is not profit, it is a loan. At the end of the quarter, the society has all of these loans in its treasury. It then figures out Tiow much each member loaned in this way during the quarter and returns it to him. This return of the loans is called "dividends" in England. We pre fer to call it savings-returns. "Loan- returns" would, perhaps, be a bet ter name. The words "surplus-savings" and "savings-returns" are used by us be cause this money represents what the members save. If they traded at the private store, they would not save it; the private merchant would get it. But having saved it, the member leaves it with his society, and it becomes a loan. This matter is important from the standpoint of taxation. A loan is surely a very different thing from profit. The United States govern ment is spending over 90 per cent, of its income for war purposes and it may be expected to put taxes on wherever the taxing is good. We co-operators should make it clear that we are not out to make profit but just to save our money—and humanity. tion should know just what per centage of the income and expenses are chargable to delivery. The to tal overhead of this society should not be more than $900 a month— $800 would be better. means the return of high prices." This is a good thing to impress upon every member of every co-operative society. THE COST OF DELIVERY The People's Co-operative Asso ciation of Marceline, Mo., has 218 paid up stockholders and 22 who are paying for stock on the instal ment plan. It has $10,000 paid in capital. It does an average busi ness of $7,542 a month. The society sells groceries and meat. It has a committee on edu cation, which holds meetings, pro vides speakers on co-operation, and distributes literature. L. E. Shel- ton, the president, reports that the prospects for the society are good, because of the interest in co-opera tive education that is maintained. The following statement discusses one of the problems: Our most perplexing problem is the mat ter of delivery. We have two Ford deliv ery trucks and the cost of operating is very large. We are not having any success in reaching new members. We opened our stores at a very inopportune time, as the cost of all kinds of goods was at the high est point and has been on the decline ever since. With the experience of the past five months to guide us, we will make a good showing in the year before us. WM. WELLS, Vice-President. Here is a society which might wisely adopt the Utica method of using purchase slips of two colors, one for purchases carried home, and another for purchases delivered. When savings-returns are paid, only half as much is paid on delivered purchases as on purchases carried home. Delivery should cost be tween 2 and 4 per cent, of the busi ness done. This society could probably get along with one truck and make fewer deliveries. Every organiza- A BUSY LITTLE SOCIETY The Moscow Co-operative Society of Moscow Mills, Mo., has 148 mem bers, a paid in capital of $10,000, and does a business of over $12,000 a month. It runs a general mer chandise store. Here is a store which turns over its capital more than twelve times a year. A GOOD REPORT The Monett, Mo., Co-operative Mercantile Society has 233 share holders and does a business of $82,- 000 a year. Out of a business of $600 a day, their largest day's busi ness to non-members was $4.73. The share capital is $10,800. Savings- returns of 5 per cent, were paid at the last quarter. Interest at five per centnum is paid on loan capital. Members are urged to leave savings-returns with the society as loan capital. Ten per cent, is set aside for the reserve found. The inventory shows $7,- 182, which is $1,400 more than the preceding quarter. The overhead is 14 per cent. The cost of delivery is 3.9 per cent. The average amount spent at the store by each share holder was $24 a month. This society publishes a well got ten up quarterly report which shows for each member (by number) the amount of his share capital, the amount of purchases, the amount of savings-returns, the amount of loan capital, and the amount of interest received. The report emphasizes this significant sentence: "Experi ence of others has taught the lesson that the destruction of the Co-op THE SOCIETY THAT STOPPED The store that was lately started in the building of the United Mine Workers, No. 171, three miles from here, it going along all right. But here in our locality the thing is all blown up. The local we proposed fell through. The mine here em ploys 350 men and has partly closed down. The owners have taken out the cutting machines and put the men on hand pick and shovel work, and the men cannot make a living at that kind of work. All the men can is from $2.50 to $3.50 a day. The $3.50 men were to go to work last Monday, but I went up to the mines and saw ten men go in and shortly after four of them came out. "What's the matter? "says I. "Oh, we could not make a living in there now." And it loks as though the bosses didn't want them to. The mines out here are nearly all shut down: over-production is the cause. In Kansas City coal is stacked up everywhere. Bill Kay- ser surely started a rough house that has blown the whole capitalist nightmare into a scrap pile. Now, who is going to clean up the mess, and rebuild the world? The same old gang are playing off that they know just how to do it. But if they keep on they will only start another world scrap for commercial su premacy and down will come their house of graft. This is the reason we have not started our co-operative store. It could not be done here because of the way this coal situation has struck us; and it is liable to stay this way for God knows how long. JOE GRECHUS. Lexington, Missouri. 50 CO-OPEEATION CO-OPERATION 51 THE COMMON GOOD $100 REWARD FOR A WORD AND A SYMBOL In order that true co-operative so cieties may have a designating mark to distinguish them, it is necessary that they should have a word and a seal or picture. These can be copyrighted by The Co-operative League of America, and their use permitted only by genuine co-oper ative societies. A prize of $50 will be paid for the word selected, and $50 for the picture. The words "Co-operative" and "Co-operation" are not copyright- able, and are used in the United States by all sorts of spurious and non-co-operative enterprises. Some word which is copyrightable must be invented. Already the following have been suggested: "Rochcla" (the first syllable of Rochdale and the initials of The League); "Coopam" (the cable code word of The League, composed of the first two syllables of "Co-operative," and the first syl lable of "America"); "Claroch" and "Co-opcla." None of these words are euphonious or arresting. A copyrightable word must not be similar to any word in any language with which it might be confused. It must not be the name of any person or place. It must be an en tirely new word. "Socony" (Stand ard Oil Company of New York) is an example of such a word. The picture, which can be used as a seal or placed on the front of co-operative buildings, or printed on their products, should be simple and of few lines. A word or words may be embraced in the picture, although it is best that the picture be without words, so that the copyrightable word may be added to it. Both word and pic ture must be copyrightable. This contest will be judged by the Executive Board of the League, and the winning word and symbol will be submitted to the Board of Di rectors for their approval. This notice was first published in December last. The time for clos ing the contest has been advanced to July 1, 1921. WINDOW POSTERS The Co-operative Food Products Association of Seattle, issues the fol lowing bulletins; societies should have them painted on cards and use them for window signs: "Competition and capitalistic business depend upon the profits they make out of the people for their existence." "In Co-operation the people de pend on themselves only." "The purchasing power of the people is the lever that moves the economic world." "Three times every year all the money in this country passes through the hands of the wage earners of the country." "Profit-making business will be powerless to exploit the workers just as soon as they turn their pur chasing power into their own co operative channels." "Remember, your purchasing power is supreme." "More wealth is wasted by the present profit-making system than is taken by the profiteers." "Co-operation would save the bill for advertising and smart salesman ship which in the United States amounts to $2,000,000,000 a year." "Co-operation aims to do away with war. This country is spending $5,000,000,000 this year on war." (Other suggestions for signs of this sort will be found in the pamph let on "Co-operative Education.") COURSE ON CO-OPERATIVE AD MINISTRATION A practical course for Co-opera tors is to be given by experienced workers at the office of The Co-oper ative League of America, 2 W. 13th Street, New York, Thursday even ings at 8 p. m. Mar. 3—The Manager and Employ ees: Personality, Relationship to Board of Directors, The Manager as an educator. Mar. 10—The Store: Situation and arrangement, Equipment, First stock of goods, Departments, Adding new lines. Mar. 17—Problems in Management: Buying, Stock Control, Adver tising, Advantages of Self Ser vice, How to avoid competition. Mar. 24—Selling, Price Fixing, Mar gin Classifications, Window dressing, Use of Cash Register and other methods of handling cash. Mar. 31—Delivery, Keeping down expenses, Eliminating waste, Other problems. April 7—Fundamentals in Book keeping, Columnar systems. April 14—Recording goods re ceived, Inventory taking, Sales Records, Systems of keeping track of members' purchases. April 21—Reports to Control Com mittee, Figuring profits, Audit ing. April 28—Specialties: Restaurants* Bakeries, Butcher shops, etc. The Course is open to all. Those wishing to join the'class should com municate at once with the office. The only cost is $2 registration fee. month? Have you sent m a new subscriber? Spread the news of Co operation ! THE MAGAZINE All members of co-operative so cieties should see to it that a copy of this official magazine, CO OPERATION, is kept on the bulletin board in their store. Does your So ciety received a bundle lot each THE NEW ENGLAND DISTRICT CONVENTION Notice is hereby given that a con vention of the co-operative societies of New England has been called to convene on March 19 and 20, 1921, at the Hall of the Independent Workmen's Circle, 84 Leverett St., Boston, Mass. The convention will be called to order on Saturday the 19th at 2 p.m. All co-operative societies in the' New England states are asked to send delegates to this convention. The main work of this convention is the organization of a district co operative league, in conformity with the action of the Second American Co-operative Convention. Many other vital issues in the movement will be discussed both in the field of prac tical operations as well as in theory of the movement. The basis for delegation is one delegate from each society and one additional delegate for each 500 members or fraction thereof. It is hoped that the New England so cieties will be well represented. The call to the convention is sent out by the New England Educational Committee of The Co-operative League of America: Adolph Wirk- kula, Secretary, 84 Leverett Street, Boston, Mass. NOTICE AND WARNING Co-operative societies and labor organizations are advised against putting money into wholesale or chain store enterprises until they have communicated with The Co operative League of America. So cieties are advised to investigate very carefully any financial or bank ing enterprise, soliciting funds, es pecially in California and adjacent states. 52 CO-OPERATION CO-OPERATIVE MEDICAL SERVICE Sickness among the workers has always been a very costly luxury. Innumerable families struggle along from day to day without the neces sary margin to take care of sick ness or disablement. To such people, sickness means economic distress or disaster. There is no reason, however, why the workers should not prepare themselves against such an emergency, through co-operative effort. Here is what the workers of Holland have done. The co-operative society, "De Volharding" was organized princi pally among the radical workers at The Hague, for the purpose of con ducting stores. It has, however, branched out into a very necessary service. It now has a medical de partment, which looks after 70,000 families. This department consists of a staff of 31 physicians, includ ing 9 specialists; several nurses, and pharmacists, and an analytical chemist. Each member is assigned to a particular family physician, whom he consults when necessary. When medicine is prescribed, the prescription is compounded at one of the two pharmacies maintained by the society. These pharmacies do very little business for the gen eral public, but are kept busy most of the time supplying the needs of the members. They were erected by the society, and are up to date in every particular. They com pound anually about half a million prescriptions. A special delivery system brings the drugs directly to the homes of the members. The medical department also con ducts a clinic, to which members are referred by their family physi cians, when necessary. A staff of nine specialists and several nurses are in attendance at the clinic, and are prepared to treat surgi cal cases, and serious diseases. The clinic is fitted out with modern ap pliances; X-ray machines, electri cal devices, an operating room, etc. A laboratory is maintained in the clinic, where investigations are car ried on, and bacteriological and other analyses made. All these services are available to the members at a cost of only eight cents a week. A whole family, in cluding children under 18 years of age, may receive medical treatment at the cost of 16 cents a week. The fees of the physicians, and the other expenses, are paid for out of the dues collected. Members also receive sick bene fit from the society. The benefit paid is 13 guelders a week, or about $5.00, for a period of ten weeks. Death benefit allowances are also made to the relatives of deceased members. The medical department operates at a cost of only $160,000 annually. It is a splendid example of what Co-operation can do in the field of medicine, to relieve the pinch of poverty and to make for a more se cure standard of living among the workers. A HINT ON INCORPORATION Here is a bit of advice wnich may be useful to co-operative associations which are incorporating. The advice is from a Pennsylvania society, but it may also apply elsewhere. « I see where we made one mistake when we got our Charter from the State, by limit ing our capita] to $5,000. We should have capitalized for $10,000. I would advise new associations in the State of Pennsyl vania to make their capital stock more than plenty, for it will cost just as much to increase the capital afterwards as it costs for a new Charter, but if we had gotten ours out for $10,000, all we would have to pay in addition would have been the state tax of 1/3 of 1 per cent, on each dollar. By this means we would have saved about $50 on the deal. J. A. BRETH, Secretary Union Labor Co-operative Ass'n, CO-OPERATION A magazine to spread the knowledge of means whereby the people, in voluntary organization, produce and distribute for their own use the things they need JAMES PETER WARBASSE, Editor. VOL. VII. APRIL, 1921 No. 4 VITAL ISSUES LIFE, NOT LABOR Labor is a great inconvenience. Everybody tries to escape it. If we could pick from trees everything we want, we should not be so foolish as to labor. Labor is only a means to an end. The end is that we may be able to consume. Perhaps the Syndicalist eats in order that he may work: but the Co-operator works in order that he may eat. It is an un happy circumstance that people are giving most of their energy and us ing their most valuable time each day, not in living, not in doing the things that would make life most worth while, but in earning the means with which to do these things. And the means they earn are scarcely adequate to provide the simple necessities of life. So earn estly are they, occupied in selling their labor for a livelihood that they scarcely have thought left to con sider living. Labor is the great modern incon venience. While the average man is working on his job, his mind is at work on the side. He is thinking of the life he can buy access to with the wages he is to get for his labor. Food, clothes, housing, music, drama, education, art, self-expres sion, love, rest—these are the things he wants. His great satisfactions are in his life as a consumer. If nature produced everything, if automobiles and shoes grew by the wayside, the consuming function would be supreme. That day, hap pily, will never come; but the day that should come is when the worker shall have the joy of work ing at the making of an automobile which is to be for a fellow Co-oper ator who is working at the making of a pair of shoes for him. When that day comes all will perform use ful service, labor-saving devices now undreamed of will be used, the hours of labor will be few, and the hours of personal liberty many. But still the consuming function will be the great source of joy. Riding in the automobile and wearing the shoes will ever be greater satisfac tions than making them. The question is asked, "Where is the worker most exploited, at the point of production or at the point of consumption?" There is no such thing as being exploited until he at tempts to exchange his wages for the things he needs to give him life. The work was not life. Now that he has created wealth with his la bor, and has received money in ex change, what will the money buy? That is the answer he is after. The worker has not been paid until he spends his wages. When he ex changes his money for life, only then does he know how much his labor has won for him. The business world knows that the consumer is the most important person. It is for him that all the business of the world is carried on. It is for him that all the allurements of advertising and salesmanship are applied. The consumer stands in the strategic position. He needs but to organize and the world is his. WHAT HAPPENS TO PRO DUCERS' CO-OPERATIVE INDUSTRIES Producers' Co-operative factories in Europe have failed or become capitalistic. Not satisfied with the European examples the American workers themselves have desired to 54 CO-OPERATION CO-OPERATION 55 make the test of the self governing work shop. They have talked of it so much. Almost every Socialist local in the United States advocates it. If they would only be willing to be governed by facts rather than by theory the workers could be spared bitter experience. For seventy-five years groups of workers have been organizing co operative industries in this coun try. The Workingmen's Protective Union, the Sovereigns of Industry, the Patrons of Husbandry, and the Knights of Labor, all organized co operative producers' enterprises. The latter had several boot and shoe factories in New England between 1875 and 1885; and these attempts at co-operative industry contributed largely to the breaking down of that splendid old organization. Printing societies, iron foundries, cloth mills, glass factories, laun dries, clothing factories, and box factories, have each passed into his tory. Other producers' co-operative en terprises in the United States have made furniture, underwear, brooms, coal, nails, pipes, lumber, pottery, soap, stoves, tobacco, and most every other American product. At the organization of many of these twenty-five, fifty and seventy-five years ago, the same language was used and the same plans were made as we find in the case of groups of workers now blindly planning pro ducers' industries. The Co-operative Stove Works of Troy, N. Y., founded as the result of a strike in 1866, developed a capital of $106,000 in twenty-five years, but by that time there were but ten of the original workers in the concern, and six men owned more than half of the stock. The same happened in the Co-operative Foundry of Rochester, N. Y.; organ ized in 1867, it grew till it had a capital of $200,000 twenty years later and was doing a business of $.'550,000 a year; but it ended by becoming a capitalistic stock com pany owned by thirty-five stock holders. A similar history follows the cigar and glove factories. The Co-operative Hat industry of Philadelphia was started in 1887 and went the way oi the rest. A co-operative hat factory in New York ten years ago had capital, en thusiasm, and idealism, but it failed for want of an organized market of consumers. The Co-operative Bar rel Works of Minneapolis, organized in 1874, had by-laws which voiced" ideal standards of industry, and every condition surrounded their en terprise to make for success; it owned its buildings, and had a stave factory in Wisconsin. Trouble be gan when machines were introduced which displaced one-fourth of the men, who were co-partners in the industry. The final disaster caine when the mills substituted bags for barrels and the whole industry was practically destroyed. Had this industry been owned by the many consumers instead of the few producers, the change would have been to the advantage of the many workers who were owners in stead of a disaster. In 1919 the Brotherhood of Main tenance of Way Employees and Railway Shopmen invested around a million dollars in factories for the manufacture of gloves, hosiery, and underwear. Although called co-op erative, like all of the above enter prises, they were really not co-oper ative. The Co-operative League of America advised against the course they were entering upon; but oblivi ous of a hundred years of failure they went ahead, and the poorest paid of the Railroad Brotherhoods in less than a year sunk their hard earned savings in a hopeless fail ure. When we find workers planning to put their money into a co-opera tive producers' industry we should advise them to get some of the in formation which the workers have already bought and paid for at a high price. DANGER IN THE SUCCESSFUL MANAGER Beware of the successful man ager! Of course the unsuccessful manager has to be guarded against too, but everybody knows about him. The dangers of the unsuccess ful manager are easily seen. I want to issue a warning to look out for the successful manager because I have seen some of the things he can do to a co-operative society. Some time ago I published a state ment about a society in the middle west in which I said that the only danger that threatened that society was the manager. He was one of the best managers in the State. And, sure enough, the splendid so ciety that he built up went on the rocks and was a wreck four weeks after he left it. Fortunately this man came back and helped rescue the society. But the most impor tant thing he did for it was to teach it how to get along without him. A society in one of the Northern States has over 1,000 members. It has been in successful existence more than thirty years, and the manager is the president of the board of directors. Think of that! This man is the most useful man in the town. The people look to him to do everything for them. The Sunday I was in his district he preached in two churches in the place of their absent ministers. Another successful society in the Middle States has a manager who runs a regular four ring circus—the meat market, the store, the bakery, social and educational work, as well as the board of directors. The so ciety is often actually called by the manager's name. When the society started a new department the man ager himself actually decided to em ploy two of the board of directors, who now work under his direction! He represents the highest degree of managerial efficiency — but is it good co-operation? These managers do the work which the members should do, which the directors should do, which the several committees should do, and their own work in'the bar gain. But what a predicament these societies get in with their super- efficient managers! No manager has ever been discovered who lives forever or who does not sometimes change his job. When these so cieties lean on these men they lose their power to walk alone. Man agers who do every thing for the society, and present it with success, usually fail to do the one most im portant thing: they fail to teach the members to run their own business. I do not say, let these managers cool down and take things a little easier. It is not necessary that they should go slow. But it is necessary that the society should steam up and go faster. The manager need not drop back to the speed of the so ciety; but the society should speed up and catch up with the manager. These efficient men show what one human being can do for a society; now the society should show the same spirit and wake up the rest of its members to do even more. The Co-operative Movement can never succeed unless the general membership of societies feel the re sponsibility, and not only qualify themselves to carry on the work, but actually do it. A society is poor, indeed, that permits itself to get in a position where it depends entirely upon one man. At least the mem bers of the board of directors and the control committee should have a complete grasp of all the affairs of the society; and the general membership should be as lively as a pack of hounds after them. The super-efficient manager, so far as he goes, is a blessing to the Movement; but he must be matched by a super-efficient membership or the society is not well balanced. A race horse and a lame plug do not make a good team. J. P. W. 56 CO-OPERATION CO-OPERATION 57 CONTRIBUTED ARTICLES A. BAG OF CORN MEAL BY MABEL W. CHEEL On my recent speaking tour to Reading, Pa., and the vicinity, I came across a thriving little co-operative that reminded me for all the world of the beginning of the original Roch dale society we have all read so much about. In October, 1914, this little group of people in West Reading started their co-operative society even more modestly than the Rochdale Pioneers^with one bag of corn meal! A year later, from the profits of vari ous articles sold on a small scale, they had saved $78.00. Two years later, they had accumulated $800.00, and today are doing an annual business of $33,000. During this time they have given three dividends on pur chases, amounting to $1,000 in cash, to members and non-members. Last year their dividend checks ranged from 16 cents to $28.00. They own their own little store outright, and have purchased a piece of ground to build a larger store. The char ter members of this little group all had the larger vision of Co-oper ation, and their desire has been to benefit the whole community, and not alone the members of the society. In the opposite side of the town is the East Reading Co-operative So ciety. Here is a little group of 53 members with a capital of $5,000. The society was started in 1918 with $120. The store was first opened in the basement of one of the members' houses, and the success of the store was so marked that in one night they raised $1800 for their own building, which they moved into the first of April. They are doing a business of $22,000 a year. They have a neat little nest egg of $1300 in the bank which was earned in the business. Right in the center of the city is the Keystone Co-operative Society, which deals only in men's furnish ings and clothing. It has a very at tractive appearance. This store caters to all the members of the other co-operative societies in the vicinity, as well as to other trade unionists of Reading. The President of this society, Mr. A. P. Bower, is a leader in the Co-operative Movement in Reading, is Vice-President of the State Federation of Labor and Vice- President of The Co-operative League of America. The Rosedale Co-operative Society located just fifteen minutes from Reading, in the suburbs, did a busi ness of $28,000 last year. They own their own building and have a capi tal of $1,250. The 1920 surplus was $600, which was added to the capital. There are also two new large co operative societies started among the railroad employees of Reading. One is called The Transportation Co-op erative, and the other the P. & R. Railroad Workers, the latter having 600 members. The members of all these societies once a month hold an educational meeting. The store or ders are as far as possible pooled weekly, through their federation, the Berks County Co-operative Union. The idea of federating came from the East Reading Co-operative Soci ety. One of their members, Mr. Law rence, is an expert accountant, and he is standardizing the accounts of the eleven co-operative societies in and near Reading. The business of these eleven societies amounted last year to $248,000. All these societies have co-operated in building a Labor Lyceum in Read ing. Just a few miles away in New- manstown, the members of the co operative society and others in the town joined in building and running a very fine co-operative moving pic ture house. In Womelsdorf, just fourteen miles from Reading, the Society did an an nual business of $18,000. It earned a reserve of $1,887 in 1920. Its over head is low, for it has sixteen volun teer workers who help out in the store. The people of Womelsdorf are principally employed in cigar factor ies.. When they were asked why they did not sell the cigars they made themselves in the private factories, they said: "Well, I guess not! We prefer to sell co-operative cigars made in the Reading co-operative factory!" This society is the Com monwealth Co-operative Cigar Fac tory, which started with $100 capital and now has $6,000. It pays wages from 12 to 20 per cent, higher than those paid in private cigar factories. I have mentioned the federation of the eleven societies in Reading and the vicinity into the Berks County Co-operative Union. This is the nat ural outgro\vth of the common needs of these co-operatives. Its activities are two-fold. It carrier on weekly discussions and educational meetings, la addition, it buys in large quanti ties such staple articles as soap, sugar, etc., for the various local co operatives. This federation is a splendid nucleus from which a Dis trict League will grow to take in the co-operatives of other adjoining coun ties. CO-OPERATION IN LAND BY BOLTON HALL An "abandoned farm" was used to raise chickens. The profit did not seem to go to the owner (who had acquired it by foreclosure) because the Irish lady tenant stood the con stable off with a shot gun when he came to collect the rent. But it was bought by a New York man who owned lands between it and the railroad station: because it was so beautiful, so high up and only about an hour from the city. After buying it, the next thing was to find a use for it. So he took the late Ben- jaminHitchcock, land developer, up to say what he should do with it. Said Hitchcock, "The best thing you can do with that place is to forget it. It will rent for enough to pay the taxes if you fix it up a bit, and some day someone will come along and offer you a big price for it on account of its attractions." "But I don't like to keep land idle," said the happy owner; "people want places to live: why can't I advertise it and get families to come here?" Said Hitchock, "If you spent twen ty thousand dollars, you couldn't get twenty families there in twenty years." * So the owner, who knew Hitchcock was advising against his own interest as a promoter, bought some more land opposite the Farm, incorporated the Free Acres Association under the admirable Co-operative Act of New Jersey, and presented the farm of about sixty-five acres to the Associ ation with one restriction only, that it should be rented out by them and never sold, and that the full rent of the land should go for their local taxes and public expenses. He knew that, as the settlement increased, it would make a demand for his adjoin ing lands, which would bring enough profit to pay for what he gave away. He was right, but as he spent no money on advertising or improving the place it took ten years to do it. Meanwhile, it forms an object lesson in the taxation of land values and it afforded him a country resort with the advantage of congenial neighbors. Others will follow this example, be cause this arrangement of collecting the ground rent for public purposes, established a basis for voluntary co operation in the community, and at tracted settlers. The people get at Free Acres enough well situated land for a house and garden, with assured and perpet ual possession, and free of taxes, merely by paying the ground rent, as fixed by themselves each year into their own treasury. Intelligent home- seekers naturally flock there. It is plain co-operation in land, but on a more scientific basis than that of the Ferrer School and the Fellowship Farm at Stelton, New Jersey. The like can be done elsewhere. Instead of buying groceries where the gross profit is only some eighteen per cent, let the Co-operative Association buy land where the gross profit of the de veloper is usually two hundred per cent. 58 CO-OPERATION CO-OPERATION 59 Or—buy a big tract; deed over part of it, and so get your population to go there, bringing their land values with them for your benefit. They will be the richer in many ways; and you will be the richer in money. PROGRESS OF CO-OPERATION IN BLOOMINGTON BY MARTIN A. DILLMON It was in the year 1917 that a few active trade unionists of Blooming- ton, 111., launched an energetic cam paign consistent with their belief that the workers should collectively own and operate their own store. A meeting was called to form a tem porary organization, but our first meeting was a disappointment as but four persons were present. Apparent failure of their first effort only in spired the few leaders to redoubled efforts. Their fond hopes were real ized when on November 25, 1917, with a sufficient amount of stock sub scribed, a meeting was held, the Bloomington Co-operative Society was born, the certificate of incorpora tion was applied for, and officers were elected. L. J. Salch, who was elected Presi dent, was prevailed upon to accept the position of Manager, at a great per sonal sacrifice. Preliminary obstacles were surmounted, and on January 12, 1918, the store was opened for busi ness. As time passed, the member ship grew. One by one the uncertain moments passed away, as the Bloom ington Society soon took a place in the procession of progress. The year 1920 was one of many accomplishments. During that year our coal yard made its first sale. This new adventure was an astonishment to many, but its success has demon strated that the workers can operate their coal yard. Later in the same year, our Cash and Carry store was opened. We now have 500 members, and the society did a business last year of $150,000. We have an active Women's Guild and an Educational Committee. We are affiliated with the Centra] States Co-operative Wholesale Society. Another milestone of progress was reached in 1920 when the society be came the owner of the handsome white front building, purchased for $20,000, which is the new location of our store. The store opened March 24th. So many members and friends turned out to see the store that we had to empty it three times. John Walker, President of the Central States Society described it as "The most beautiful and well stocked gro cery store in Bloomington—the most modernly equipped, up-to-date and best stocked meat market there." The Bloomington Co-operative So ciety is today recognized as one of the most successful Rochdale societies in this country. CHAIRMAN'S ADDRESS: NEW JERSEY STATE CONVENTION JACOB TAZELAAR Mr. Jacob Tazelaar, in opening the convention which organized The Co-operative League of New Jer sey, spoke in substance as follows: Wherever one may go (in almost every direction) there seems to be an earnest desire on the part of the people to organize co-operative so cieties. This condition, however, has been responsible for the begin ning of many organizations which have sprung up through the agita tion of certain men who have used this opportune time in launching illegitimate organizations. In many instances thousands of innocent peo ple have been exploited by dishon est men, who have launched schemes for their own personal profit. It is time that an organized effort be set on foot, and a central organi zation be formed in every state to put an end to these schemers, who are not only injuring the movement but who, if left alone, would soon hopelessly wreck it, robbing thou sands of honest investors and leav ing behind them a trail of disaster. There is no room in the Co-oper ative Movement for exploiters and financial schemers. There is no room in the movement for stock job bers and financial crooks, working for themselves and for their own personal gain and profit. As the Movement grows, and becomes powerful, representing big financial undertakings, there will be room for only such men as are willing to serve it honestly in the interest of the great mass of consumers. Many co-operative organizations have been compelled to suspend be cause the unfortunate investors fol lowed the advice of these schemers. Unfortunately the blame was placed upon the Co-operative Movement instead of the men who left their victims behind to tell the story of how they were enticed into an in vestment that was based upon noth ing but false promises and impos sible schemes. The North Jersey Consumers Co operative Supply Company, which I have the honor to represent, is a member of The Co-operative League of America. We believe that there should be a national head organization in our Co-operative Movement, and further believe that there should be in each state an or ganization which shall aim to super vise the Movement in that state. I do not believe that any honest or well posted co-operator can deny the fact that The Co-operative League of America is directly re sponsible and deserves credit for having carried on the work of edu cating thousands of people in this country, and educating them along the right lines in matters affecting co-operative principles. The work has become so great that The League now advocates that each state shall take into its own hands the local work. Social problems can best be met by local experts. One of the chief reasons why so many people have.been led into questionable co-operative enter prises is the fact that the national organization was unable to reach the people with warning in time. There are many men traveling throughout the country carrying all kinds of credentials of labor unions seeking to enroll the people into so- called "co-operative" schemes, who can only be dealt with locally where they are at work. A good local or ganization of the co-operators in each state can prevent these men from operating their swindling games. My constituents feel that we do need and must have a wholesale house and that the Co-operative Movement should not merely be dis tributive, but that we should be pro ductive as well. But what we need first of all in this state before we have a wholesale is thorough or ganization and sound knowledge of Co-operation. Instead of some thir ty or forty stores we should have at least a hundred or more in this state; and what is still more urgent ly necessary is that they thoroughly understand one another, learn to have confidence in each other and gradually get closer into a solid or ganization, so that they may know exactly the strength and the finan cial resources and the weaknesses of each. We should endorse the policy of The Co-operative League of Amer ica that the state organization should function in educating the people in the formation of new so cieties, women guilds and kindred units for the dissemination of the principles of Co-operation. As these societies in their State League become better organized and make themselves more substan tial, then they may take under con sideration the starting of their own wholesale, which should be sep arate and distinct from the State League. 60 CO-OPERATION CO-OPERATION 61 THE COMMON GOOD FOURTEEN POINTS FOR CO- OPERATORS 1. Make your store the co-operative center of your town so that everyone who enters its doors comes out with some co-opera tive idea. Be sure they know that a co-operative store is bet ter for them and for the com munity than one run for private profit. 2. Appoint a committee on educa tion. 3. Use the four-page Associated Magazine issued by The League at $1.00 a hundred. Its front blank page can be used for local news and reports. Send this to each of your members monthly. 4. Have every member of your board subscribe for the monthly magazine CO-OPERATION and learn the news and the experi ence of co-operators all over the world. 5. Require that every employee un derstand and be in sympathy with Co-operation, and spread the story of it to the customers. 6. Have every member of your Board examine The League's system of Store Records and Ac counts, and adopt it. 7. Elect a control committee to check up the manager's weekly reports. 8. Have every member of your Board read, "How to Start and Run a Co-operative Store." 9. Check up your costs of operation and the relation of monthly sales to capital invested, and make both conform to the require ments for success described on page 12 of "How to Start." 10. No matter if your manager is a highly competent nian, do not let any manager entirely run your society. The Board and the members should all do their part. 11. Have a monthly meeting of the members for entertainment and reports of committees. 12. Put women on your committees and on your Board. 13. Elect a Membership Committee to secure new members, and hold the interest and loyalty of old members. 14. Educate, EDUCATE, EDU CATE. These fourteen points are more im portant for you than any fourteen points ever gotten together by war- making politicians. They will help you to have something better than a League of Nations—they will help you have a League of Co-operators. HOW TO GIVE CREDIT It has always been thought danger ous for a co-operative store to give credit. Co-operatives can not easily get credit themselves from the bank ers, so they must operate with a smaller capital than other stores. Furthermore it is expensive to extend credit to customers. The overhead expenses are increased, because of the bookkeeping required, and in the long run, some men will not pay their debts. To meet the expense and loss which go with a credit business, prices must be made high enough, which makes it hard for the co-op to compete. What is worse still, the store may sometimes not be able to meet its bills, because customers have not paid their bills. But obvious as are all these disad vantages of doing a credit business, it is often a necessary evil. Customers may become unemployed, or meet with other difficulties. It is hard to turn them away. How can they be given credit, without endangering the store, or increasing its expenses? One plan which has been suggest ed, by the North Jersey Consumers' Co-operative Supply Co., of Clifton, N. J., is to set aside each quarter or half year one per cent, of the total sales, as a fund for those who become incapacitated because of old age or accident. The amount which can be drawn by such a member depends upon the length of time he has been a member, the amount of his purchases during that time, and the number of shares he holds. He is not required to repay the society for the goods. This is similar to the Belgian plan, which amounts to an old age pension. A method which seems to be quite popular among co-ops is to permit members who have good cause to ask for credit, to take goods to the value of a part of their stock. This should never be allowed to exceed 50 per cent, of the member's stock, and even this should not be allowed unless there is legitimate cause. Otherwise, members may seek to liquidate their stock by drawing out goods to the full value of their shares. To safeguard the society, a committee should pass on all applications for credit. A society in Washington, D. C. has worked out a practical plan. Mem bers who wish to run accounts at the store are required to deposit an amount sufficient to cover their monthly bill. Interest is allowed on the money deposited. If the bill is unpaid within a reasonable time, the amount deposited is applied to the payment of the bill. This plan makes loan capital available, ;and secures the store against losses. Some societies use the trading book for $10. The amount of cash purchase is added to the last pur chase, when the total reaches $10 the account is closed and a new book is bought. The amount paid for the trading book may vary with the needs of the member. HOW TO GET MEMBERS The North Jersey Consumers' Supply Co., of Clifton, New Jersey, has a good plan for increasing mem bership. The society declares a sav ings return to non-members on the basis of one-half the percentage that is given to members. But the savings-return to non-members is neither paid to them in cash nor are they given it in goods, but they are notified that the amount has been credited to them in the payment on membership stock. If they wish to become members and permit the credit to be applied toward the pay ment of stock-they gain so much; if they do not signify their desire to become members the society gives them nothing. After a savings-return is declared it is interesting to see the non-mem bers who have traded at the store come in and regularly join the soci ety in order to get the benefit of the savings-return that has come from their trade. That is the only way they can get it. It costs some of them nothing to join; and the rest have only to make a small cash pay ment. Then they own the necessary amount of stock and are members of the store where they trade. COAL TO INCREASE MEMBERSHIP We invite the attention of our readers to the significant letter from W. H. Closser, one of the Directors of The Co-operative League of Amer ica, printed under "How They Do It." The novel plan for boosting the mem bership of the local association by selling coal to members at $1.50 per ton below the market price, is par ticularly deserving of attention. The unselfishness of Mr. Closser in resign ing from the Board "to get rid of some of the old dead timber" is to be commended for its fine spirit, but Closser is far from being "old dead timber" as yet. THE SOUND CO-OPERATIVE WHOLESALES Since we issued a warning against the co-operative wholesale societies which are using unscrupulous promo tion methods to bleed the workers, we have been asked whether several sound societies were included in what we termed the "chain-store co-opera tives." To avoid all misunderstand ing, let it be understood that the fol- Towing wholesale societies are per- 62 CO-OPERATION CO-OPERATION 63 fectly sound and do not violate the principles of Co-operation: The Central States Co-operative Wholesale Society, 203 Converse Ave., East St. Louis, 111. This society is a federation ,of stores, some of which are pure Roch dale, and others "cost-plus." Its management is conservative, and it is striving to change as soon as pos sible to the Rochdale basis. Co-operative Central Exchange, Superior, Wisconsin. New England Co-operative Wholesale Association, 86 Lever- ett Street, Boston, Mass. These two organizations are main ly federations of Finnish co-opera tives. Farmers Union Jobbing Associ ation, Kansas City, Kansas. Farmers Union State Exchange, Omaha, Nebraska. We urge local co-operative stores to get in touch with these wholesale societies, with the view of strength ening the wholesale and themselves. ANOTHER HINT ON PENNSYL VANIA INCORPORATION In our March number we published some comments on incorporation by J. A. Breth, which advised societies in Pennsylvania to capitalize for the largest sum they will possibly need, in order to avoid the expense of amending their articles of association whenever it should be found desir able to 'increase the capital. We have received information from Howard Lewis Fussell, an attorney in Phila delphia, based on the interpretation of the law by the Secretary of the State of Pennsylvania, which im proves on the plan proposed by Mr. Breth. According to Mr. Fussell, "it is best not to capitalize for the highest probable sum needed, both because this means additional cost for the bonus to the State, when funds are likely to be low, and because few new associations can know with any cer tainty how much capital they may need a few years in the future if their business grows." Instead, the articles of association should be drawn so that the capital can at any time vary with the needs of the busi ness, without requiring the amend ment of the articles. The law of Pennsylvania and other states permit of the capital being made variable, though it does fix a minimum capital stock. If the articles of association per mit of a variable capital stock for the society, the only expense of in creasing the capital stock will be the bonus charged by the Secretary of State. It would thus eliminate the heavy expense of amending the arti cles of association. CO-OPERATIVE MANAGERS Co-operative stores which intend to change their managers should get in touch with the Employment Bureau of The Co-operative League of Amer ica. We have experienced managers listed, who are interested in Co-oper ation. NEW DISTRICT LEAGUES FORMED The work of federating local soci eties into District Leagues is going steadily forward. Since our last is sue, District Leagues have been or ganized in New York City, in New Jersey, and in the New England States. The Greater New York Co-oper ative Union, a federation of the co operative societies of Greater New York, for educational purposes, came into existence February 18th. The Co-operative League of the State of New Jersey was organized March 6th. A report of this is con tained elsewhere in this issue. In addition to these new organiza tions are the District Leagues of Missouri and Ohio, which have al ready been formed. NEWS AND COMMENT THE DISTRICT LEAGUE OF NEW JERSEY FORMED The State Convention held in New ark, N. J., in Iroquois Hall, Sunday, March 6th, for the purpose of organ izing a State League of Co-operative Societies in New Jersey, was called to order by Mr. Jacob Tazelaar, Pres ident of the Clifton, N. J. Consum ers' Co-operative Supply Company. Mr. Tazelaar was the enthusiast who was mainly responsible for the Con vention being called. In his address of welcome to the delegates, he paid particular atten tion to the many fraudulent repre sentatives going throughout the country organizing co-operative soci eties for personal profit, leaving be hind them 'in many instances hun dreds of poor consumers and a bad name for The Co-operative Move ment. He urged the necessity of combating this evil, by organizing to stop a practice which in time may greatly injure the movement. The speaker's address of welcome was received with enthusiasm. A Committee on Credentials and Order of Business was appointed, which re ceived the credentials of the follow ing delegates: Niles Peter Hanson, George Wuste- feld, Mrs. Isabella Wilson, of the Co operative Society of Perth Amboy; Jacob Tazelaar, Daniel Jacobus, John W. Vandersalen, of the North Jersey Consumers Co-operative Supply Co. of Clifton, N. J.; Soussel Winchel An- gelo, Wenegus G. Batta, Rosso Pietro, of the Italian American Family As sociation of Clifton, N. J.; Wm. A. Kraus, Fred Eckes, Ed. Bohne, North Jersey Co-operative Society of Ber- genfield; J. Jaccheri, G. Bononetti, H. Rolando, of the Co-operativa Operaia Di Consume of West New York, N. J.; Mrs. Martha Krann, Mrs. W. Wooley, of the Bergenfield Woman's Co-oper ative League; Mrs. Sophie Ericson, Mrs. Johanna Marthinuson, Mrs. Mathilda Holt, of the Workers Co operative Society of Perth Amboy, N. J.; Margaret Reetz, Anna Skog- land, Mina Sahlin, of the Clifton Wo men's Co-operative League, of Clif ton, N. J. One of the most significant things about this Convention was the num ber of women delegates present. Mr. Jacob Tazelaar was made Chair man of the Convention and Daniel J. Jacobus was elected Secretary. The Convention then went into a Commit tee of the Whole for the purpose of considering the name and the adop tion of a Constitution, which was the main purpose of the Convention. The name adopted for the organiz ation permanently effected was The Co-operative League of the State of New Jersey. The objects defined for this organ ization were: "to promote the cause of Co-operation whereby mutual aid shall be developed among men in place of antagonism; spread the knowledge of the history, principles, and methods of The Co-operative Movement; to encourage the co-oper ative acquirement of land and other agencies of production; and to form a union of all true co-operative soci eties for the purpose of state, na tional, and international federation." "True Co-operation" was defined to mean "societies who in their by-laws specify strict compliance with the state laws on Co-operation, which embody the Rochdale system of Co operation." The Constitution adopted by this State League was the Model Consti tution for District Leagues prepared by The Co-operative League of Amer ica with slight modifications. Where- ever a modification was made, it was as a result of the peculiar experi ences of the New Jersey societies, which have been victimized by the or ganizers of the National Co-operative Wholesale and the National Consum ers Co-operative Association. For example, note the phrase added by the State League to one of the pur poses set forth in our Model Con stitution : 64 CO-OPERATION CO-OPERATION 65 "To carry on the work of teaching the facts, principles and methods of Co-operation; but not by 'paid' or ganizers." It was provided that every constit uent member of the State League should pay as dues an annual contri bution on the basis of 25 cents for every member. One-half of the dues collected from constituent members are to be paid to be used for educa tion under the direction of the Co operative League of America. The Model Constitution provided for only 5 cents for every member, as the dues of constituent members. The in crease of this amount shows how well the New Jersey societies realize the need of supporting educational work. It was decided to hold a Conven tion of the State League every three months. The Constitution adopted provided that: "The Co-operative League of the State of New Jersey shall affiliate with The Co-operative League of America and regard itself, and be so regarded, as a member of same. It shall be subject to The Co-operative League of America so far as this Con stitution provides." The next meeting of the State League was set for Sunday, May 1st. A SUCCESSFUL CHICAGO SOCIETY The Roseland Co-operative Asso ciation of Chicago furnishes a good example of steady progress. This society, which opened its first store in January, 1918, did a business of $109,502 for the first year. During the year 1919, an increase was made to $150,771. Not content with this, they boosted the business up to $207,584 during the year 1920. The Roseland Association has a grocery and meat market at 11,000 Michigan Avenue, and a branch store at 405 W. 119th Street. They also run a restaurant at 11,007 Mich igan Avenue. A saving of $10,254.- 14 was made on their business last year. A four per cent ^"dividend" was returned to membe'rs on their purchases, and the non-members re ceived return-savings of two per cent. Five per cent interest was paid on the capital stock. The so ciety showed its progressive spirit by setting aside five per cent of the savings as an educational fund. After these sums had been deducted from the earnings, an undivided sur plus of $4,583.41 remained, which was kept in the society. Purchasers at the Roseland stores receive small slips which as to be saved to be presented to the store when cash dividends are distrib uted. These receipts have on their reverse side a little lesson in Co-op eration : "Bargains don't fool us Or profiteers rule us; "We are planning today For the future to pay." The Chairman of the Educational Committee of this society is enthu siastic over The League's account ing system. The Educational Committee is constantly distributing literature. This tends to make the society grow and to keep the members loyal. The Roseland Association is affi liated with The Co-operative League of America, and is thus aiding in its program of carrying on educa tional work on a national scale. Chicago is not all fake. There are a number of splendid societies that never for a moment gave a se rious thought to the "National Wholesale," or the "National Con sumers Association." A TEN-PER-CENT DIVIDEND ON MILK At the last meeting of the Board of the Co-operative Trading Co., of Waukegan, Illinois, it was decided to declare a ten per cent dividend on all milk purchases for the year 1920. This means an average divi dend of from $10 to $15 for each customer. The dividend will be paid in cash to the members. Other pur chasers will have their dividends credited towards the payment of stock. The Waukegan society, which is affiliated with the Co-operative League of America, has had a very promising growth. Its turnover during 1920 was $185,000, an in crease of fifty per cent over the pre vious year. Shares bear interest at five per cent, and in addition, sav ings-returns are made on purchases. A "profit" of $8,000 was made last year. The society at present operates three departments, a dairy, grocery and meat market. In the near fu ture a bakery will be started in con nection with the store. ENGINEERS' CO-OPERATIVE BANK GROWS In each of the past four months, the resources of the Brotherhood of Locomotive Engineers Co-operative National Bank have doubled. Here are the figures: November 1, 1920.... $650,971.77 December 1, 1920.... 1,410,014.96 January 1, 1921..... 2,243,118.39 February 1, 1921.... 4,916,957.91 According to the by-laws of the bank, profits in excess of 10 per cent cannot be divided among the stock holders, but must be distributed back to the depositors, or go toward the building up of a surplus fund. The bank allows an interest rate of 4 per cent on savings deposits, from date of deposit to date of with drawal, and interest is compounded quarterly. It even allows 2 per cent on balances on checking accounts. The last report available, at the end of February, 1921, shows that the savings deposits of the bank are more than $2,500,000, while the commercial deposits are $1,139,905. addition to the grocery and bakery business it is carrying on. The report of the Manager, Rich ard Henschke, showed that the as sets of the society amount to $70,- 000. The profits earned in 1920 were $3,800, which were divided as follows: $415 was added to the re serve fund; $191 to the educational fund; $1,560 was paid as interest on shares, and $1,645 distributed as savings-returns on purchases. The return represents a dividend of 3 per cent. The net profit for the year on the total sales was 3.24 per cent. A membership campaign during the year was vigorously carried on, prizes being given for those who secured the most members. The campaign resulted in 93 new mem bers being added to the society. SOUND POLICY AT BLOOM- INGTON Steady growth is reported by the Bloomington, Illinois, Co-operative Society. Last year's business of $150,000 represents an increase of nearly $22,000 over the business of the previous year. The meetings of the society are well attended and enthusiastic. At the last meeting, the Board of Directors recom mended a savings-return of 4 per cent on purchases. The members, however, showed their loyalty to the society by voting to distribute only a 3 per cent dividend, the remainder being placed in the reserve fund. This is the kind of spirit that makes for the success and growth of a co operative society. UTICA CO-OPERATIVE J TO SELL COAL The Utica, N. Y., Co-operative Society has decided to sell coal in LEAVENWORTH, WASHINGTON The Leavenworth Co-operative Society, of Leavenworth, Washing ton, did a business last year of $150,- 000. This store was organized by railroad men, and is operated on a Rochdale basis. The capital stock of the society is $25,000. The div idends paid to members last year amounted to $3,000. 66 CO-OPERATION CO-OPERATION 67 STAUNTON'S SUCCESS The Co-operative League of America has just received a report from the Union Supply & Fuel Co., Inc., a thriving miners' co-operative of Staunton, Illinois. We reprint it as a splendid example of the sound, business policy followed by this so ciety, and also as a model form of a report. COMPARATIVE STATEMENT OF OPERATION FOR THREE TEARS 1918 1919 1920 Sales to members. $101,229.73 $96,402.09 $120,066 68 Sales to public... 33,468.86 18,369.40 27,82275 Cash and carry and meat mar ket ........... .. . Coal ........... 17,077.23 18.364!i9 Wholesale ....... 6,042.24 7.92016 Misc. receipts.... 270.76 333.62 6,216.98 33,177.79 6,642.28 607.33 Total receipts....$168,088.82 $140,389.36 $194,433.41 Total amount of business transacted... .$492,911.68 PROFITS Total gross profit ......... $24,642.47 $19,978.64 $24,01485 Total operating expenses ...... 16,673.26 16,014.98 17,110.86 Total gross profits for three years...... $68,639.96 Total operating expenses for three years. 48,798 36 Net profits, three years. ................ 19,741.16 The total selling 'expenses amounted to $9,674.55, or 9.5 per cent, of ihe turnover. This is sound administration, as the overhead ex penses are usually between 10 and 13 per cent, for a retail store. An other remarkable showing of this society is the large proportion of sales to members, as compared with sales to the public. In 1920, the sales to members were nearly five times more than the sales to the public. The society paid a savings-return of 5 per cent, on all purchases to members, in addition to interest on share and loan capital, and a re serve fund set aside. The savings- return could have been larger, but the society followed the conserva tive business policy of writing off as a loss 15 per cent of their stock, because of the decline in prices. WORKERS FALL FOR MAKE- BELIEVE SCHEME Elsewhere in our columns we have published the story of the fail ure of the co-operative society at Camden, New Jersey. The eighth, and most important reason indicated for the failure, was the indifference of the people to Co-operation. As expressed by our correspondent: "The people have not been suffi ciently imposed upon to awaken them to the necessity of Co-opera tion, or working together for their own good, and until that time ar rives we will have to accept things as they are." Now comes the Glynn System into this city where a progressive labor group is making an effort to organize a genuine Co-operative, and it prom ises to sell goods at cost price and to take the burden of management off the minds of the members. All they want in return for their prom ises is the money of the workers. And the workers rather than exert themselves co-operatively for their own good are apparently willing enough to pay over their money to a chain-store system. Their labor leaders endorse the scheme and tell the workers to part with their money. Our good friend in Philadelphia, who has observed the efforts of the Glynn System to establish itself in Camden, gives the key to the situa tion when he says that the plans proposed by the promoters appealed to those who knew little, if anything, of the Rochdale Plan. They have only to be told that the British Co operative Movement has a powerful wholesale, and they immediately jump at the conclusion that the Movement in this country can de velop through the organization of stores by an existing wholesale. They put the cart before the horse. Everyone familiar with the facts knows that the British Wholesale came into existence through the fed eration of existing co-operative stores. Thus the workers continue to be fooled. THE CO-OPERATIVE UNION OF NEW YORK CITY A meeting was held at Our Cafe teria, Feb. 18, for the organization of a District League in New York City. The meeting was called to order by the temporary president, Mr. Leslie E. Woodcock. Miss Grace B. Drake made the report of the Programme Committee. Mrs. Flor ence Kelley, Secretary National Consumers' League, gave a talk on the wider aspects of co-operation both in Europe and in America. She reviewed many of the more suc cessful Co-operatives in Europe with which she had had personal contact and then analyzed the problems of Co-operation in America. The talk not only inspired those attending the meeting, but laid down the sound lines of procedure which Co-oper- tives should follow in order to suc ceed. Reports upon the Co-operative Movement in Greater New York were made. The following societies were represented. The Corona Co-operative Society, Queens; groceries. The Ridge Co-operative Association, Inc., Brooklyn; groceries. Beekman Hill Co-operative Association, Inc.; housing. Postal Employees Co-operative Association, Inc., Central Distributing Agency; groceries. Foreign Branch P. O. Sta. Co-operative Store; groceries. Hudson Guild Co-operative Society; groceries. Navy Yard Employees' Co-operative Stores; merchandise. Cigar Makers' Co-operative Association, Inc.; cigar manufacturers. Community Co-operative Trade Associa tion, Inc.; groceries. Finnish Co-operative Trading Association, Brooklyn; bakery, meat shop, pool room. Greenwich House Co-operative Laundry; laundry. Co-operative Club, Inc.; housing. Our Co-operative Cafeteria; restaurants. Voorhis Co-operative Society; groceries. Consumers' Co-operative Credit Union; banking. | Workmen's Circle Credit Union; banking. In addition to representatives of societies there were present repre sentatives of The Co-operative League of America, the State Bureau of Co-operative Associations and other organizations interested in Co-operation. There were forty present at the meeting. The report of the Permanent Or ganization Committee was made by Mr. Otto Arlund, manager of the Finnish Co-operative ^Association, the constitution being read by the secretary of the union. It was moved and seconded that the name be "The Co-operative Union of Greater New York." The motion carried unanimously. A discussion then took place concerning the purposes of this association of Greater New York societies. Mr. John Du Jat, of the Corona Co-operative Society, and others discussed the possibili ties of wholesale purchasing by the co-operative groups. Mr. Arlund on behalf of the Permanent Organi zation Committee stated that the committee itself was opposed to any such immediate action, since it would be necessary for the societies to be better acquainted with each other before any such move could be considered. The committee felt that wholesale buying should not be undertaken until the societies were welded together as a social and edu cational group. Mr. J. H. Calla- ghan, president of the Ridge Co-op- ative Society, supported this stand. A model constitution was adopted. The meeting voted in favor of the constitution as amended and that it be referred back to the different societies for their vote. THE C. W. S. OF ST. PAUL "DISBANDS" The Co-operative Wholesale So ciety of America, of St. Paul, will disband, and the affairs of the com pany will be closed up as soon as possible. This was unanimously decided at a meeting of the stock holders, and it came after several creditors had filed a petition in a federal court asking that the society be adjudged bankrupt. The stock- 68 CO-OPERATION CO-OPERATION 69 holders of the society will partici pate in the petition for the bank ruptcy of the corporation. This is the culmination of legal proceedings which have been going on against the C. W. S. since June, 1920, when formal charges were presented to the State Securities Commission of Minnesota. A min ority of the directors of the C. W. S. appeared before the State Commis sion and presented evidence to the effect that the society was insol vent, that it was not a wholesale concern, but merely did a broker age business, that the overhead ex penses were twice what they should be, and that the society was mis managed. Pending its investigation the Commission permitted the C. W. S. to continue to sell stock only upon condition that the stockhold ers of the company who would thereafter buy merchandise through it should ~be allowed the discounts for cash which are customary in the wholesale trade, and that they charge regular wholesale prices only and allow only 5 per cent com mission for the sale of stock. Several law suits were com menced against the society. The surplus of $11,000 on hand June 30, 1920, had been decreased to $2,300 by the end of this year. Since then, judgments against the company amounting to $4,450 more than wiped out the surplus, and creditors besieged it from all sides. The peti tion in bankruptcy was the end of the C. W. S. Some of the officers of the C. W. S. have started out selling stock in a new venture which they call the "Rochdale Consolidated Stores, Inc.," incorporated for $1,000,000. J. M. Anderson, the President of the C. W. S., is one of the incorpo- rators of the new society, as is James Manahan, the attorney for the C. W. S. Joseph Gilbert, the Organization Manager of the C. W. S., holds the same job in the new company. This new organization is not co operative. It is one of those many private business schemes which mas querade under the name of "Co operation." No provision is made in the new company for dividends to purchasers on the basis of their patronage. Any amount of stock may be held by one individual. The company is not or ganized under the co-operative law, but under the general corporation law. THE AIR IS CLEARING For the past few years there have been operating in the United States some "high finance" Co-operative wholesales. They began with good intentions, but were promoted by impractical men who did not under stand the history of the Co-operative Movement, or even good business methods. They adopted policies which were unsound and which have failed in the past. They also failed to act upon the information or ac cept the assistance which The Co operative League of America con tinually offered them for a period of nearly two years. Experience proves that the sound way to organize a Co-operative wholesale is as follows: When enough consumers' societies have grown up in a given locality and their purchasing power is great enough, they unite for joint buying. Then they federate to form a whole sale. When the organization of a wholesale comes about by this nat ural process, its growth is sound. No paid organizers are necessary— no propaganda, no stock selling campaigns. It is formed by soci eties who have learned to work to gether, have developed mutual con fidence, and have proven the value of joint action. But instead of following such a policy, this family of "high finance" Co-operatives developed other tac tics, born of the American desire to get quick results and do big things. Impatient of the slower methods of federation, they launched whole sales. The promoters constituted themselves a centralized machine and proceeded to create new con sumers' societies to support them. The wholesales employed paid or ganizers who were forced to use dangerous methods of propaganda in order to sell their stock. They went out after money—anywhere, everywhere. Offices and ware houses with large overhead ex penses were established premat urely. The money which societies paid them was vastly in excess of any service they could render. They were forced to present the appear ance of a wholesale in order to se cure subscriptions to it. The capital subscribed, which should have been used for goods and fixtures, were daily used for current expenses and filling gaps and making explana tions. These speculative wholesales did not prosper. In their desperation to keep their ventures going, they resorted to methods which placed them quite outside the pale of the recognized Co-operative Movement. Eefusing to take sound Co-operative advice and slandering sound organ izations which called attention to their dangers, they naturally began to fail. The first of these organizations to fail was the Tri-State Co-operative Association of Pittsburgh, in June, 1920. The next to fail, in August, 1920, was the Consumers' Co-oper ative Society, Seattle, Washington, branch of the National Co-operative Association, and managed by the Pacific Co-operative League. Then the branch of the National Co-op erative Association at Hoboken, N. J., went into the hands of a re ceiver in December, 1920, followed by the bankruptcy of the central organization of the National Co operative Association (Wholesale) of Chicago, in January, 1921. Later, in January, 1921, the Co-op erative Wholesale Society of Amer ica, at St. Paul, went into the hands of a receiver. The only remaining example of this group of "high finance" Co operatives in the United States is the Pacific Co-operative League, of San Franciso. To raise more money to keep the present whole sale going, it now proposes to branch out into the more perilous field of banking and has launched an elaborate plan for the organiza tion of a national bank and a "Co operative Finance Company." This "Co-operative Finance Company" is announced by its promoters to have the two-fold purpose of "pro viding a place for members to put their money safely," and "a place from which the movement can se cure financial assistance when nec essary." We have reason to believe that the Pacific Co-operative League is more concerned about the latter aim of the "Finance Company" than the former. THE CO-OPERATIVE BANK OF LEVIS The pioneer co-operative bank on this continent is the Caisse Popu- laire of Levis, Quebec. Founded in 1900 by Alphonse Desjardins, it has become the model co-operative bank. Since the death of that good man last fall the management has been placed in the hands of his very efficient son. Beginning in a small way with the savings of the poor working people, this People's Bank has become the most important bank in the city. At the close of last year's business it had outstanding loans of $1,072,- 878, and cash on hand $23,274. Its assets were $1,096,152. It paid $3,000 current expenses, bought a building for $4,617, paid interest on savings (4%) $30,041, and paid dividends (6%) $15,288 to its mem ber patrons. It had $267,300 sur plus; $765,644 savings; $64,700 profit for the year; $1,276 collected as membership fees; $38,183 reserve fund; $10,328 emergency fund, and $1,666 undivided surplus profits. 70 CO-OPERATION CO-OPERATION 71 The total surplus due the society was $50,179. During the twenty years of its existence, the bank has done $8,- 873,942 business. This includes nearly $5,000,000 deposits. It has 1,219 shareholders, 2,289 deposit ors, and 170 borrowers. It has paid in interest on deposits $114,063, and dividends $108,894. All this is done with two em ployees, and despite the opposition of the Canadian Government and the hostility of big finance. The Government will not permit the bank to loan to individuals outside of Levis; other banks have no such restriction imposed upon them. The shares are $5 each, and the maxi mum amount which any member may hold is 600 shares. Depositors need not be members. The muni cipality of Levis and the churches do their banking with the Caisse Populaire. This is one of the best methods to begin a co-operative society. The society now has capital and should be in a position to enter the distrib utive field. Why does it not start stores for its members? Perhaps one reason is because of the mod esty and humility of the working class which have always caused them to step aside and permit business men to run the peoples' business for them. When the workers become better educated and learn that busi ness will not be run in their inter est unless they run it themselves, the world will become a much bet ter place to live in and labor will become really worth while. A CO-OPERATIVE THEATRE The London Daily Herald an nounces the organization of a co operative theatre, known as The London Operatic and Dramatic Asso ciation, Limited. This association has been registered by The Co-operative Union, Ltd., as a cooperative society. Shares in the company have been bought by various labor unions. Con trol will be vested in a Committee representing the shareholders and the various artistic and technical elements. The shareholders in this way will have a voice in the manage ment of the theatre, and the audi ence will be given an opportunity to express its desires as to the type of plays, operas, etc., to be staged. The rules are broad enough for the com pany to build theatres, tour com panies, and do anything else con nected with the theatrical business. Great benefits are hoped for, in this new co-operative enterprise. The type of production will probably im prove when the theatre is liberated from the profit motive, through the elimination of the private manager. Trashy plays will not be staged for the sake of making profit, for the actors are interested in producing things of the best artistic merit. The theater-goer for the first time will have a voice in the management of the theatre. Co-operation will make the artist independent of the private manager who has no other interest in the theatre than the money he can make. At the same time, it will make the theatre truly responsive to the public. HOW THEY DO IT UNIONS FEED UNEMPLOYED The latest development in our co operative store is that the labor unions are feeding some of the many unemployed and they are giv ing their orders to our store. It is a big item of help to us, in these days of falling prices. The value of the immediate avail ability of co-operation to change society's standard of success from what one possesses—private profit —to service, has achieved a great growth in my fifty-six year old mind in the last few months. FREDERICK SAWIN. Dayton, Ohio. "THE CLEANEST STORE IN TOWN" "We opened our store on February 1st, just at the time of the shut down here in the oil field, and it looked pretty blue for 1 s then. We had a ha,rd time getting about ¥4,500 paid in. Some having been used for rent and other expenses, printing, etc., we started with about $1,700 hi stock, and were very careful about putting much in fixtures. We owe a great deal to the loy alty of the carpenters and painters for the building of the shelving and counters and the painting was donated. It saved us quite a little money. I may add also that we have the cleanest and neatest grocery store in the city, and a lot of the outsiders say the same thing. Up to date, or in the forty days business, we have taken in $7,200, and are gradually growing. J. A. McCuEDY, The People's Co-operative Store, Bartlesville, Okla. THE SOO MOVES FORWARD Everything looking bright for our Asso ciation, having made a net profit last year of $8,500. Our reserve fund, too, is about up to the limit as prescribed by the Michi gan State Laws. We did a business of $365,000 last year on a capital of $25,000. This is more than a hundred per cent, increase in the business over last year, which was $165,215. So I felt that this year was a good time to get rid of some of the old dead timber. Mr. Robertson and I resigned from our Board here, as we felt that it was high time to be working some new material into the harness. i We are busy this past winter in stirring up the coal profiteers. Local dealers here are selling soft coal at $12 per ton and we are getting it in by all rail, paying a long freight haul and selling it to our members at $9.50 per ton delivered. We advertised to sell at above price to members, Churches and public schools. I had a hard fight to get our Board here to confine the sale to members and I think you will readily see my plan. It is working to my expectations, as inquiries are now coming in for member ship. Today our Manager informed me that The Loretta Academy had taken out stock and ordered a car of coal. What they save alone on the coal will pay for their mem bership stock. We succeeded in having appointed a live wire as Chairman of the Educational Com mittee, in the person of Mrs. Daniels. She contemplates using the Associated Maga zines again this year, and will likely use 1,000 lots. w H_ CLOSSER, Soo Co-operative Mercantile Ass'n, Sault Ste. Marie, Mich. EDUCATION AT MINERSVILLE I was called to Minersville, Ohio, to make a report to them of the work done at the Convention at Cincinnati in November. I was greatly pi-eased with the interest shown by the members and their families. I believe their membership is 84, and at tendance at their meeting was 150. After the business of the meeting was taken care of, refreshments were served. Good talks were given, and very highly appreciated; plans were considered for putting on a series of the slide pictures you have, in this district, some time in the near future. The financial report for the year past showed an earning return to stockholders of $2,- 473, business for the last quarter, $10,- 408.30, with a 6 per cent, dividend to the members. I am making a special effort to obtain a club subscription of one hun dred for CO-OPERATION, to get the proper education before our members. Our work is progressing nicely. Mr. Ray Gard ner of the Athens store gave us a fine talk on the future prospect for Co-operation in this country. jj. E_ QASKILL, Middleport, Ohio, Co-operative. STANDARD METHODS AT ERWIN We organized a_ Rochdale Co-operative Society, The Unicoi County Consumers' Co operative League, here and opened for bus iness April 16, 1920, and up to December 28th we did a business of over $135,000, made a dividend of 10 per cent, on all stock holders' purchases, and a surplus of nearly $5,000 each month. We organized this store on the plan laid down by The Co-operative League of America, and its success has been far above our expectations. Our So ciety intends to get 500 copies of your asso ciated magazines every month. I saw them at the Cincinnati Convention. Erwin, Tennessee. c- F- DUNCAN. FAILURE AT CAMDEN I will state briefly the main reasons for the failure of our Company: First—Lack of understanding and in difference on the part of stockholders. Second—Payment of two yearly divi dends (profit) which should have remained in the busines_s. Third—Putting very little in and ex pecting a great deal out. Fourth—Greed on the part of our land lord who raised our rent from $25 to $85 per month. Fifth—Lack of sufficient working capi tal. Sixth—Inability to secure the right kind of help and to get pur directors or stock holders to do anything for nothing. Seventh—As prices advanced net profits 72 CO-OPERATION declined, as we could not maintain our gross profits and compete with the chain stores with their larger buying facilities. Eighth—Unfair competition which caused loss of business and disinclination on the part of stockholders to go out of their way a few steps to patronize their own store. I am convinced after three years hard work for nothing with the assistance of a very few of our 217 stockholders that we were about ten years ahead of time in this locality. The people have not been suffi ciently imposed upon to awaken- them to the necessity of Co-operation or working to gether for their own good, and until that time arrives we will have to accept things as they are. CHAS. H. HUGHES. THE SEQUEL Yesterday I went over to Camden and visited the office of the "Glynn System." Mr. Reedy, who is an "office manager" there, states that the A. P. of L. has endorsed this system. They have no doubt made considerable influence on the Allied Trades Council of Camden, N. J., and secured support of labor leaders of that city. I went last Thursday and met those in terested. Mr. Glynn spoke. Those to whom he was talking know very little, if anything, of the Rochdale Plan, or the difference, and are carried away by their wholesale idea. A Member of the C. L. A., Philadelphia. (This non-co-operative scheme now be comes planted in Camden, with the endorse ment of the labor leaders, and will proceed to collect money from the workers, while they are made to believe it is co-operative.) DISTRICT LEAGUES AND WHOLESALES There are innumerable movements start ing up all over the country under the name of "community stores" and "membership stores," etc., all of which are really pri vately owned, but where the people are in duced to pay either a large membership fee or monthly dues for the privilege of buying goods at supposed wholesale prices. 1 know of quite a large number of such institu tions which have attained 500 to 1000 mem bers each; yet no such arrangement can be come permanent, on account of the absence of personal interest and education in man agement and the lack of the accumulation of working capital for the permanent bene fit of the participators. As to co-operative wholesales—their name is legion, and so far as there being any such in this section of the West who are doing their retail constituents any good, I fail to locate them. We must have genuine dis trict wholesale societies and district co-op erative unions. E. M. TOUSLEY. Minneapolis, Minn. AT ROLEFIELD, MONTANA Wolfs Point co-operative store is in the hands of a receiver, because it was not organized right. The Malta co-oper ative store has been a one-man co-oper ative store. The manager ignored the in structions of the directors, and no educa tional fund or reserve fund were provided. He conducted the election last April and retired all the old directors, electing a board of his own selection, and he thought he was secure. But I spent a whole week, giving the members information, paying my own expenses, but we succeeded in in ducing him to resign, at the urgent re quest of the shareholders. Rolefield, Mont. S. E. PENN, VALDESE CO-OPERATIVE, INC., VALDESE, N. C. The writer helped to start the Valdese store three years ago. To be honest, start ing is hard, but the hardest matter is to keep it going. But as far as I know, it is going to succeed. We still have a pretty large number of antagonists, but we will succeed anyhow. The store was started in 1917. The cap ital subscribed was about $4,000. The building erected is 30x40, two-story build- made of masonry, as the store got crowded with goods, we added to it; now we have 7,500 square feet of floor space. The build ing is just completed. The entire cost of of the construction is $7,000. The ca.pital now amounts to over $17,000. Things seem to run nicely, but I certainly will appreciate any help you can give us to convince the doubting Thomases that Co operation is the business of the future. And the most pressing need of the co operative societies is to buy merchandise jointly so as to save the enormous toll paid to middlemen. Louis BOUNOUS. SUBSCRIBE FOR CO-OPERATION Several co-operative societies have recently subscribed to' CO-OPERA TION for each of their members. These societies simply have had the question put in the form of a mo tion, "That the society subscribe to CO-OPERATION for one; year for every member, that The Co-operative League of America be instructed to send the bill for the subscriptions to the society, that the treasurer be in structed to pay the bill out of the funds of the society, and that the one dollar required for each subscription be charged to the account of each member and deducted from his next savings-returns." CO-OPERATION A magazine to spread the knowledge of means whereby the people, in voluntary organization, produce and distribute for their own use the things they need JAMES PETER WAEBASSE, Editor. VOL. VII. MAY, 1921 No. 5 VITAL ISSUES THE " DIRECT TRADING" QUESTION Well-meaning people, who have not been willing to take the time to .study the facts in the problem, have always advocated what they called "direct trading" between the organized pro ducers and the organized consumers. "Direct from producer to consumer" is the slogan. For a hundred years, wherever this has been tried in Eu rope and America it has failed: that is wherever there was any idea that there would be any special advantage to either party in the arrangement. The British Co-operative Wholesale Society had its experience with the farmers of England and Ireland, and accumulated much information. The facts are these: organized con sumers buy where they can buy the cheapest, and organized producers sell where they can get the highest price. It is true that the British C. W. S. buys butter by the shipload from the Danish producers' societies, but it does ,so not because any concessions are enjoyed, but for the same reason that any capitalistic wholesale would do so^^it is the butter their cus tomers want to buy. Only in rare in stances have consumers' societies bought of organized producers when they could have bought cheaper else where; and when they have done it, they acted in the spirit of a very im practical idealism. The Swiss agri cultural societies in 1919 put the mat ter squarely when they said that they preferred to sell to unorganized con sumers in the cities because they could get better prices from them than they could from organized con sumers. And why should they not? This does not mean that we need think harshly of the farmer. He is just as honest, and considerably more useful than the average worker. But he has got to get the best wages he can, the same as any other worker; and the way he can get good wages is by getting good prices. Co-operators have long ago ceased to bother with the fatuous attempt to "bring the producer and the con sumer together." The only way they can get together is on a business basis, and not as co-operators. The consumers' co-operative societies will buy from the organized farmer when no one else will sell them any cheaper; and the organized farmers will sell to the co-operative consumer when no one else will pay him any more. Either would be foolish to do other wise. Getting together on any other basis is unsound and visionary. Meetings can be held, papers read, and much talk indulged in, but the facts will not be altered. Let those who are not interested in the advancement of the Co-oper ative Movement dabble in fanciful schemes; all that co-operators can ask is that only facts be considered. "The Grange Warehouse Movement in Washington," elsewhere in this magazine, throws light on this .sub ject. A recent letter to The League from the Grange Warehouse of Seattle is illuminating. It says: "As far as we know there has never been anything done in the way of di rect trading between producers and consumers. Some plans have been ad vanced which we think are visionary. We think much harm comes from over-enthusiasm and untried plans. Whenever a Grange enthusiast pre sents such a plan, we are immediately bombarded by farmers with all kinds of produce to sell for them, usually wanting higher prices than the pro duce is selling for in the retail stores. 74 CO-OPERATION CO-OPERATION 75 "Our experience has been that it is necessary to collect and grade the produce in one of our own stores, and distribute it through another of our stores. "As long as we are doing business without profit, this seems to us to be the shortest route to take. It is the shortest route we have ever been able to take successfully." The problem of the producer is dis cussed in the light of history in the pamphlet, recently published by The League, entitled "Producers' Co-oper ative Industries." There would be fewer mistakes if these facts were more generally known. MILK DISTRIBUTION Co-operation succeeds well in the distribution of milk. The need of the co-operative method in this field seems especially urgent. The at tempts which co-operators in the United States have made are most en couraging. The article on another page in this magazine, entitled, "Pure Milk for Babies," is noteworthy be cause it deals with the unique out come of a strike. The striking dairy workers, mean ing the men working in the cream eries and driving the milk wagons in Minneapolis, decided to organize co operatively. If they had been guided by the usual soap-box advice they would have organized as producers, taken the place of the bosses, and sold their milk to the consumers for as much as they could get from them. This method would have created a nice little privileged group of work ers who would be interested in mak ing as much profit as they could, out of the great mass of working people whose babies need milk. But these men took council with co-operators instead of with vision aries. They wanted to succeed. They organized the Franklin Co-operative Creamery Association and went out and sold the stock to nearly 2,000 consumers. They themselves became stockholders, the same as the others. After their strike they went back to work, and then they took two years to organize their consumers' society. They did patient and painstaking educational work. When the society was formed and the plant and equip ment ready, the original workers left their old bosses and went to work for their new society. They now occupy a strategic posi tion. The drivers know how to get customers and the inside workers know the business. The more mem bers as consumers they can get, the more work they can have and the more dairy workers they can take from the private bosses and place in co-operative employment. They are all interested in seeing the society grow. Above all they know that the bigger it grows the more babies will be saved with good clean milk. This society should be watched with keen interest. It is showing the way for striking workers to reorganize their craft. This is the method which should be used also by laundry work ers, bakers, and other craft unionists. It is the co-operative way. WHERE PROFITS ARE LOANS Co-operation means mutual trad ing. The aim of the co-operative so ciety is not to make profits. Its pur pose is to exchange with its members their money, which they cannot eat or wear, for an equal value of goods, which they can use for their suste nance and comfort. Profits are made out of other people, but not out of ourselves. The merchant cannot make any profit selling himself goods • from his store. Co-operators simply unite to sup ply themselves with the things they need. Instead of each one going shop ping at a private retail store, they put their money together and hire a man ager to buy for them at a wholesale store. When they go to their co operative store to get the goods their money has bought they pay into the treasury again some more money in order to make it possible to buy some more goods and keep the stock replen ished. The co-operative society which car ries on a business and sells com modities to its members makes sur plus-savings for its members, but not profits. These surplus-savings, so long as they remain in the hands of the society, are loans. Co-operators do not make money out of themselves any more than a family does which has a garden and raises the food to feed its members. They save money. If a single merchant owns a store, the goods on the shelves are his. If he takes home with him a package of goods and puts in the cash drawer an amount of money equal to his retail selling price which is above cost he has loaned the business the difference between the cost and selling price. The members of the co-operative store are the owners of the goods. If they pay the regular retail price in the store they should accumulate some surplus—the difference between the cost and selling prices. If the store pays savings-returns, that means that the members are paid back the difference. They could sell goods to themselves at cost and have no surplus. What the co-operative store does is this: every time a member makes a purchase and pays for it, he loans the society the difference between the net cost and the selling price. The so ciety keeps the loan until the end of the quarter, and then returns it. When the loan is paid back to the member it is called a savings-return or "dividend." In order that the real nature of this money should not be confused it would perhaps be well to call it by its simple name—loan capital. Then as the members make their purchases and pay for them at a price above cost, the society is constantly ac cumulating these little loans. At the end of the quarter the books show that so much money has accumulated in the treasury. It represents, say, six per cent, of the total business after the necessary expenses and re serves have been deducted. Then each member has loaned the society an amount equal to six per cent, of the money he has paid for purchases. That is perfectly clear. If he bought and paid for goods to the amount of $100, the goods only cost the society $94; and when he handed the society $100 for them he loaned the society $6. Now the society has his $6 loan capital; what shall it do with the money? That is a matter for the members to decide. If they can make some good use of the loan capital that would be to the advantage of the members they may vote to keep it for a time. If they do not need any loan capital they may decide to return the loans to the members. But in re turning this loaned money let us not make the mistake to talk about pay ing dividends on profits. That is what profit-making business does, and co-operation is something quite dif ferent. Moreover, we must bear in mind that profits and dividends are taxable by the government where loans are not. As to the non-members who buy in the co-operative store, profits are made from their patronage if the transactions are of the usual business nature. But the co-operative method has something to offer them also. The society can say to the non-member, "we do not want to make any profit from your dealings with us; here is the profit your trade has yielded us; we will give it back to you, provided you will become a member of the society." Under these circumstances, if the non-member has traded, say, $100 with the store, the society would return him his $6 and he would buy a share of stock. If the stock is $10 a share, the non-member would add $4 to his $6 and become a member. If he did not want to become a mem ber he would lose the $6, for the so ciety would keep it and call it profit. Co-operative societies should strive to make as little profit as possible. But they should strive to have as many members as possible and save their members as much money as possible. And they should avoid taxation; it is expensive and will become more so. J. P. W. 76 CO-OPERATION CO-OPERATION 77 ' CONTRIBUTED ARTICLES PROBLEMS OF CO-OPERATIVE EDUCATION By SEVERI ALANNE Superior, Wisconsin The Co-operative Central Exchange of Superior, Wisconsin, which is an organization of co-operative societies in the Lake Superior district, has re cently held its fourth annual meeting. Education Provided For The meeting unanimously voted in favor of another co-operative course or summer school, three of which have already been held in Superior, in the years 1918, 1919 and 1920, at the instance and expense of the Co operative Central Exchange. Of the surplus of the Exchange, $550 was appropriated to meet the expense for this summer school, which is partly self-supporting, as the students are charged a small tuition fee. They also appropriated $250 to a fund, from which scholarships will be granted to young men and women, who have been active in the co-operative movement or who are anxious to become useful in it. Fur thermore, the meeting decided to pub lish an appeal addressed to all the 50 affiliated societies and] othei1 inter ested parties to donate money to this "Scholarship Fund," from which the Board of Directors of the Co-oper ative Central Exchange will grant scholarships of 50 to 75 dollars each to prospective students upon applica tion, giving preference to applicants that are members of the contributing societies, and also consulting the re spective boards of directors as to the merits of each applicant. Financing the Educational Department The by-laws of the Co-operative Central Exchange call for a transfer of not less than 5 per cent of the net surplus yearly to the educational fund. This year this 5 per cent means only $307.25. Since the Exchange is maintaining a special educational department, which is costing it over $2,000 to finance, this $307.25 natur ally is entirely inadequate to cover the expenses. Last year the neces sary funds for carrying on the edu cational work were raised by levying upon all the affiliated societies an as sessment of 50 cents per member which was, as a rule, paid from the funds of the societies. Thus an affi liated society with 300 members had to contribute $150 to pay for the edu cational work. The resolution, calling for this relatively heavy assessment, was passed in the annual meeting last year only by a narrow margin; this year it was passed by a much larger majority. In the annual meeting of the Ex change, which was recently held in Superior, the basis for the educa tional assessment was changed so as to be from now on 0.1 per cent, of the net sales of each affiliated society during the previous year. Thus an affiliated society, the net sales of which during the year 1920 amounted to $100,000, has to contribute this year $100 to the educational fund. The Problem of Making the Summer School Effective The Co-operative Central Exchange proposes to spend this year about $800 in our summer school or co operative courses. Here we are en countering some difficulties, which are not so easy to overcome. The main difficulty is that the ma terial from which we have to train our managers, bookkeepers and clerks, is of a rather heterogeneous character. In the first place, the previous schooling of the students attending our summer schools varies consider ably. Last year 14 of the 34 students had received a grammar school train ing in this country, 14 had received a similar training in the old country (12 in Finland, 1 in Sweden and 1 in Esthonia), while 6 had received prac tically no previous school training at all. There is a big difference be tween the school systems here and in Finland or Sweden. Then those students who have received their schooling in this country, are able to use English imich more fluently than Finnish, while many of those that have received their schooling in the old country, know very little English. In consequence, the latter are con siderably handicapped, for instance, in bookkeeping, in which all the terms have to be taught and all the entries made in English, while the teaching itself in all subjects, with the excep tion of business correspondence, has been done in the Finnish language. Another cause of inequality was the varying ages of the students, ranging all the way from 15 to 48 years. We found that those over 40 years of age were unable to make good at the studies and examinations. We discovered that it was a truly Herculean task to get those young students of 15-16 years, who had re cently graduated from an American grammar school, to grasp the princi ples of Co-operation or the funda mentals of social philosophy, as the teaching in the American public schools is notoriously devoid of any other kind of idealism than a self- sufficient American patriotism. To overcome all these difficulties we have decided to resort to the fol lowing measures in connection with our next summer school, which is to be held in Superior, Wis., probably in August and September this year: 1. The age of the students to be admitted will be limited between 18 and 40 years. Exceptions, however, will be granted in cases where com petent reasons for the same are pre sented. 2. An entrance examination will be required in Arithmetic, English (both written and spoken) and the use of the Finnish language in writing. The policy will be to stress more and more the requirements in English, with a view of gradually transforming these courses from Finnish into English. To help along those, who are not able to pass the entrance examina tion without outside aid, a prelimi nary training course will be arranged in these subjects through corre spondence, under the supervision of the Educational Department. Why Teach Bookkeeping at the Summer School? To many it may appear foolish to teach bookkeeping and business corre spondence at our summer school, when training in those subjects can be obtained in ordinary business col leges or in the night schools of cities. But we don't want managers, book keepers and clerks who have no other training than that obtained at an ordinary business college. Most of such people will work at the co operative store only on account of the salary they receive. They have no other interest in the movement. In fact, in many instances they scorn all educational features in the Co-oper ative Movement. They cannot under stand what education has to do with business. They don't care a rap about the ideals of the Co-operative Movement; all they care for is their salary. The best material from which to de velop workers for the Co-operative Movement, we have found is in the men and women who have been active in the working class movement in the political or the economic field. It is to men and women of this type we are trying, through our co-operative courses, to impart the necessary tech nical knowledge, which is needed for a successful service at the co-opera tive stores. The Source of Inspiration The Co-operative Movement among the Finns in America is still very young. Only during the last five years have we had any concerted ef forts toward a centralized movement and only for the last two or three years have we seriously attempted to do systematic educational work in- the co-operative field. Nevertheless, we have already developed several capable managers, into whose hands the guidance and management of a co-operative store can be safely trusted. A great deal of the credit for all this belongs to the Socialist movement, which among the Finns is older and stronger than the Co- 78 CO-OPERATION CO-OPERATION 79 operative Movement and which has been an inspiration to many working men and women to educate them selves and to direct their energies and activities toward the elevation of their class in every way. HOW TO WEATHER THE STORM By JOHN H. WALKER President, Central States Co-operative Wholesale Society The real test as to whether or not the Co-operative Movement that has been built up in this country is to continue and grow, or to fail, is upon us. If we are able to weather this storm then there is no trouble ahead that we need be afraid of. As a result of the declining prices of the commodities which the Central States Co-operative Wholesale So ciety has been handling for the last nine months, it was almost impossible to make a saving in the retail selling prices, and it was wholly impossible to avoid losses in the wholesale. This was because every dollar's worth of goods that was on the shelves or in the warehouses, or that had been pur chased and was in transit, was worth less in the evening than in the morn ing. As prices have come down from 10 to in some cases 50 per cent., it has meant that much shrinkage in values. This has been the first severe test we have had, and because of being inexperienced, some have become dis couraged and have not made their usual effort for the success of the movement. There is no private concern competing with us but what has suffered greater loss proportionately than we have. In stead of becoming discouraged, care less and neglectful, the different man agers, clerks and other workers in our stores should become more alert, more keen to reduce the overhead cost to the lowest possible minimum —make every saving and economy that can be made and even make a little greater sacrifice at this time than ordinarily to meet and overcome this situation. In the Co-operative Movement lies the only hope of permanent world's peace, the ending of wars on the basis of just relations between nations; and in peace times, the ending of unjust conditions that cause human suffer ing and waste. Because of what it means to the human race, there is no effort or sacrifice that we are capable of, to make this movement a success, that it is not our duty to make in the fullest measure; and if we meet this situation in that spirit, nothing can prevent our accomplishing it. Some managers have not kept in as close touch with the situation or acted as quickly and intelligently as they should hiave. They did not lower prices immediately when reductions were made, which meant that their competitors who did had an advan tage over them in prices and got their trade. This meant a reduction in the amount of their business, which in creased the percentage of overhead cost for operating their store, and then when that same kind of a man ager discovered what the situation was, in order to regain his business, he lowered prices to a point beyond his competitors and thereby lost some more money unnecessarily. Dull, slow-witted or dishonest man agers, or those who are careless and do not pay attention to their business, have no place in the Co-operative Movement. The membership must see that the manager is not permitted to do things that he should not do, and that he does the things that he should do; and where he is either in competent or fails to meet these re quirements, they should have him removed. No one should be kept on the payroll unless he is absolutely necessary. The membership, the Boards of Di rectors, and the clerks working in the stores must all join together and take a keen interest in the operation and success of their stores. If they do this, we can tide over this situation successfully, and the experience will have done us good rather than harm; but unless this is done, we cannot ex pect success. Each individual, by his personal action, can help or hinder. No one can escape responsibility. THE COMMON GOOD FINANCE YOUR OWN WHOLE SALES The promoters of two large private wholesales have been approaching co operative societies, with the view of selling them stock. Ownership of stock in these wholesales entitles local grocery stores to purchase goods through these companies. It is claimed that they sell groceries at a very slight advance over the cost, and on very favorable terms. Some co-operative societies have bought stock in these concerns, and others are contemplating doing so, to avail themselves of the privilege of buying goods through them. One thing at least can be said in favor of these wholesalesr^they are honest enough not to pretend to be co-opera tive. Some stores have received satis factory service. Others have com plained that they do not get good service. We have been asked by co-operative societies whether it would not be ad visable for them to purchase stock in these private wholesale organizations. Our answer is in the negative. The co-operative stores in this country, if they are to grow to the importance and the size of the co-operatives abroad, will have to have their own wholesales some day. Why should they not work in that direction now? Instead of furnishing capital and yielding profits to private business why not put their money in their wholesale? The profits now being paid to these private wholesalers would go back into the Co-operative Movement if the local co-operatives would get together and develop their own wholesales. A beginning may be made on a small scale by simply pooling carload orders for some staples. Talk it over with the other co-operatives in your neighborhood. A few societies may make the beginning of a successful co-operative wholesale. The New England Co-operative Wholesale As sociation had just such a modest be ginning. It started without a ware house, and with only one employee, who bunched the orders of the neigh boring co-operatives. The expenses of this venture were so small the first year that the overhead did not exceed one-half of one per cent. Before a penny goes into a private wholesaler's business, send for fur ther information to The League and get the pamphlet on "How to Start a Co-operative Wholesale." Co-opera tive socieities should put their money to work for the benefit of the Co operative Movement. HARMONY WITH PROFIT BUSINESS Although the aim of co-operation is to supplant the profit-business, still its methods are similar to it. Co operation simply puts all of the mem ber-consumers in the place of the pri- • vate owners and then goes ahead with the business in much the same way. It represents a change in the char acter, of ownership. We have no quarrel with the profit-business. We should feel sorry for the private mer chant. He is using the method to dis tribute goods which the majority of people support. Co-operation is an enlargement of the private corporation. The Stand ard Oil Company has many thousand stockholders. If the members were increased to include all of the users of its products, it would be a sort of co-operative society. Co-operation aims to increase the number of stock holders in businesses. Then we want them to adopt the > Rochdale princi ples. But in doing all of this, the ordinary methods of business are used. It is not the methods of co operation, but the results that are revolutionary. The co-operative society can run a store in any community when enough consumers are willing to be the proprietors of a store. v These con sumers who run a store are on the same ground as the private owner 80 CO-OPEEATION who runs another store. They are both in the business of distributing commodities. They should be friendly so far as commercial competition will permit. They buy goods from the same wholesaler and are answerable to the same rules and regulations of trade. The co-operators can win in the competition if they carry on their business with efficiency. In the United States, wholesalers and manufacturers do not discrimi nate against co-operators. The ex ceptions are very rare. If it can be shown that they do, it can also be shown that under certain circum stances they discriminate against certain profit-businesses also. When the majority of merchants in any town ask a wholesale house not to sell some competitor, whether the competitor is a co-operative or a profit-business, the wholesaler has to obey, or at least seem to. When this has happened with the co-operatives they have been able to get goods usually from the same wholesaler, who would send them around at night or deliver at a back door, or de liver in other trucks that did not have his name; or they have been able to buy from some other wholesaler. Profit-business wants to sell goods, and it is not very scrupulous about how it does it. If it can get the money, that is the main thing. Co-operators do unwisely to anta gonize profit-business. They should keep on friendly terms, and hammer away at their own job. Co-operation is constructive. We need not talk about destroying anything. As co operation grows, profit-business de stroys itself, because it is built on an unsound foundation. The co-operative business should not boast nor make exaggerated claims of its virtues. It should frankly take the position that the business is owned by a large number of people instead of a few, that it asks no favors, that it wants the same chance before the community that the profit- business has, and that with no dis crimination against it it can succeed. It should be generous and cheerful toward all its competitoriS. FUN IN THE CO-OPERATIVE MOVEMENT "A co-operative society usually be gins as a straight bread-and-butter proposition, but it usually ends, if it attains any degree of success, as something more and pays dividends in good fellowship and good-will as well as in dollars and cents. "In the first place, co-operators usually find that merely to sell shares and open a store or some other busi ness undertaking, is not to make a co-operative society. The members must get the feeling that they 'be long,' that the .success of the under taking depends on each of them and on their ability to stick together. "When co-operators find that they need a little mucilage to keep them sticking together, what do they do? Why, bless them! they try a little sociability. Only they don't call it that. They turn a stockholders' meet ing into a big party—serve refresh ments, have music and dancing; or perhaps the women get together, form a women's auxiliary and over the teacups discuss ways and means of boosting- their co-operative. "The best of it is, there is nothing exclusive about a co-operative so ciety—it can't be exclusive if it wants to succeed. It may be started by a club or a trade union or a settlement house, but it wants all the real co- operators it can get in the community, whatever their nationality, color or creed."—Genevieve Fox, in Commun ity Service, March, 1921. LOOK BEFORE JOINING Co-operative societies which are members of The League are advised and warned not to join wholesales or other chain-store enterprises, nor to put their money into banking schemes without first communicating with The League. This is an important matter. Many societies that have not taken the advice of The League have wasted their capital with plausible but utterly hopeless schemes. These dangerous organizations talk just as good co-operation as anybody. CO-OPEEATION 81 NEWS AND COMMENT CO-OPERATIVE GROUP INSURANCE The Co-operative Insurance Depart ment of the English and Scottish Co operative Wholesale Societies is ex tending its business every day. It has evolved the cheapest and the most easily available form of insurance possible—group insurance, which is conducted in a very unusual and eco nomical manner. There are today 2,716,329 mem bers of co-operative societies in Great Britain, who are insured in the fol lowing way. Their society pays the sum of 2 cents on every $5 of its sales, to the Co-operative Insurance Department. This sum is the only premium required. The individual members of the society need not be examined, nor is it necessary to col lect statistics as to their age, etc. Automatically, the payment of this small sum insures every member of the co-operative society, and if he is married, it insures the life of his wife, too. The amount of the benefit de pends upon the annual purchases of the member. The more a member spends at the store, the greater the amount of his insurance. There are 890 co-operative societies in England and Scotland which are insuring their members in this way. Half of the $5,300,000 annually col lected in premiums by the Co-opera tive Insurance Society was for group insurance. The remarkable thing about this form of insurance is the small ex pense of administering it. Only 3 per cent, of the premium paid goes to ward office and sales force expenses. Compare this with the overhead cost of the average industrial insurance, which is 43 per cent. Not only do the co-operators in Great Britain receive each year re bates on their purchases, amounting to sixty-five millions of dollars, but they are also insured in proportion to the amount of their purchases. This is a hint of the vast saving co-oper ators make by eliminating profit. It points the way to what will be ac complished in this country when we learn the value of unity. RUSSIA AND THE CO-OPER ATIVES A Stockholm dispatch to the Lon don press gives a most important piece of news. It reports that at the Tenth Communist Congress which met in Moscow late in March, "the decision of the preceding Congress to abolish co-operative organizations was cancelled." Lejavo, the chief of the Soviet Gov ernment's Board of Foreign Trade, is quoted in this connection in The Daily Herald of London as follows: "After the peasant has paid his small tax in kind to the Government he will be at liberty to dispose of his surplus. The co-operative societies will prove his readiest market. For eign trade remains entirely in the hands of the Government, which will import everything the peasants need and advance to the co-operatives credits out of this imported merchan dise. The co-operatives, in whom the peasants have still tremendous con fidence, will then exchange these goods for the peasants' surplus. "We expect the co-operatives to re lieve the Government entirely of the task of providing for the peasants." This report would seem to indicate a change of attitude on the part of the Eussian Government towards the co-operatives, which had been ab sorbed by the State. Voluntary co operation had been practically abol ished by various decrees, which made it compulsory for every consumer to enroll in the co-operative society in his district, and which gave control of the societies to the Soviet Govern ment. The decision to abandon this policy, and to permit the co-operatives to re sume operations on a voluntary basis, independent of the state, will be wel comed by co-operators all over the world. 82 CO-OPERATION THE GRANGE WAREHOUSE MOVEMENT OF WASHINGTON Unlike most of the grange ware houses, the Associated Grange Ware house Co., of the State of Washington, is a consumers' movement. This as sociation represents a membership of 24,000 consumers, owning sixty ware houses, which do a cash wholesale business of more than $4,000,000 yearly. The significant and distin guishing thing about it is that the business is not conducted as a mar keting agency for farmers, but prim arily as a buying agency for the con sumers. The "Agricultural Grange News," the official organ of the Grange, de scribes its work as follows: "Our Grange warehouses are con sumers' unions. They sell very little that we farmers produce. They can not afford to pay as much for eggs as does the (producers) poultry associa tion for they are not specializing in eggs. They cannot afford to pay as much for fruit as do our (producers) canneries; they cannot afford to pay as much for milk as does the (pro ducers) milk products' associations. "Hence the Grange warehouses are not primarily farmers' affairs, for farmers as such are producers; while the Grange warehouses are consum ers' (buyers) stores." A recent direct report from the Seattle office of the Associated Grange Warehouse Co. says: "The greatest need was for a central sys tem of book-keeping and accounting, and a central control of business practices. So a central auditing and book-keeping department was added to the organization, and now a score or more of Warehouses make daily reports and have their records kept in this office. This system has been a wonderful help to many of our Warehouses, and we believe it is the backbone of our whole system. We are gradually working our business more on the Rochdale methods. "We have been urged to handle the farmers' produce direct from the producer to the consumer but have not been successful in so doing. Some day we hope to cut the path shorter from producer to consumer, but the difficulty of grading, of dependable supply, and of rapid distribution, are problems which loom up large, and which we are not equipped to handle yet. We are not wanting to branch out any more just at present. Our chief aim now is to solidify and strengthen the organization we have so that we can say we have no weak members. There is so much room for improvement and' we have so much yet to learn. "The one thing that has helped us over the rough places, and kept us going has been abiding faith in the common sense and good will of our fellow men." PURE MILK FOR BABIES "The children of our city ought to have as much chance to get pure, wholesome milk as the calves on the farm," said Health Commissioner Harrington of Minneapolis, in the fall of 1919, concerning the dangerous milk conditions prevailing in that city. It was at that time that the dairy workers of Minneapolis, who had been locked out, met to discuss means for safeguarding the city's milk supply. The workers knew, however, that they could not rely upon the city authorities to do more than issue public statements, or to fine violators of the public health ordinances. They decided to take matters into their own hands, and to supply milk to the consumers of Minneapolis and St. Paul, on a co-operative basis. There was a temptation to make this a producers' co-operative, in which the benefits of the enterprise would go only to the union men involved. But sound judgment prevailed and the workers have organized a consumers' co-operative, financed and controlled by the consuming public, in which the dairy workers have no more voice or benefit than any other members. CO-OPERATION 83 The Franklin Co-operative Cream ery Association was incorporated with a capital of $50,000, which was later increased to $200,000. Shares were sold to about 1,650 consumers, including the 350 dairy workers who organized the company. The associa tion adopted the Rochdale principles. They set to work and built a model creamery plant, which is sanitary in every particular. There are 1,625 square feet of glass in this 2-story creamery to let the sunlight in. The machinery and equipment of the plant is up-to-date and sanitary. It can handle 3,000 quarts of milk per hour, or 24,000 quarts in an 8-hour day. All the machinery is operated by electric power, each unit being driven by an individual motor, thus eliminating all dangerous belting and shafts. The business was opened March 12, 1,300 gallons of pure, pasteur ized milk being delivered. Twelve wagons and eight trucks were re quired to handle the business already booked, and there were additional or ders of 700 gallons the first day. The co-operative creamery does not prom ise cheap milk, but it does promise, and it is delivering .pure milk. The members purchase ticket books. Each book with its purchase is rec orded in the company's office. When the profits are divided, they will be distributed according to these records of the consumer's patronage. They have provided in their by-laws to put a fixed proportion of 25 per cent, into the reserve fund, and to use 5 per cent, for educational purposes. The "co-op" publishes a good little maga zine, "The Minneapolis Co-operator," and for the last two years they have ordered large quantities of literature from The League for distribution amongst the public. They realize that a membership and a public edu cated in the aims of Co-operation, fur nish the best basis for the success of a co-operative enterprise. Rather than wait for a political millenium to come, the co-operators of Minneapolis have organized their own milk supply. A CATHOLIC VIEW OF THE SITUATION Father John A. Ryan, head of the Social Action Department of the Na tional Catholic Welfare Council, re cently made a strong plea for larger participation of workers in the man agement as well as the profits of in dustry, at the City Club, Washington, B.C. "Our industrial system as now con stituted," he said, "is now well-nigh bankrupt. It is fast becoming an in dustrial feudalism, and the day of feudalism, whether in politics or in industry, has gone by forever. "Reforms which will merely better the conditions of life and labor of the wage-earner, leaving him in his pres ent position of entire industrial de pendence, with no participation in management, profits or ownership, will have no permanent value. "What the worker needs is a change of status. In the days of slavery there were many white masters who gave to their slaves all the advantages of humane living except economic freedom. Yet that status was not normal and was not satisfactory. The status of industrial dependence can not endure permanently, no matter how well off the worker may be in the material conditions of existence. "There was a time when men be lieved that only a few persons, the .supermen of that day, were capable of managing political government. That belief no longer survives. Its counter part in the world of industry, the theory that the functions of owning and directing economic institutions must be performed by a few super men, is equally false and equally doomed to disappear. "There are only two conceivable alternatives. One is Socialism, the other is co-operative control and ownership by the workers of the greater part of industry." As to which of the alternatives Dr. Ryan prefers, there can be no ques tion. He is thoroughly in sympathy with the Co-operative Movement, 84 CO-OPERATION CO-OPERATION 85 which has been endorsed by the Na tional Catholic Welfare Council. Rev. R. A. McGowan, of that Council, is a member of the Board of Directors of The Co-operative League of America. CONFERENCE OF CO-OPERATIVE STORE MANAGERS A conference of co-operative store managers was held Thursday, March 3, at Superior, Wisconsin. This conference had been called at the in stance of the Co-operative Central Exchange, a wholesale organization of some 50 co-operative stores located in the Lake Superior region. The purpose was, in the first place, to dis cuss ways and means by which a closer co-operation in business deal ings between the stores and the Ex change could be effected and also to discuss other problems of vital inter est to the organization and to the Co operative Movement in general. The meeting was attended by 23 managers, representing 22 co-opera tive organizations. Ten of the man agers came from Minnesota, eight from Wisconsin and five from the Upper Peninsula of Michigan. Fif teen of the managers present were serving at stores that are affiliated with the Exchange. Some of the stores represented are fairly large, their yearly sales each exceeding $200,000. Mr. K. Lindewall, manager of the Union Consumers' Co-operative So ciety of Duluth, Minn., acted as chair man at the meeting. The central or ganization was represented by its manager, Mr. J. Nummivuori and its educational director, Mr. S. Alanne. Among the topics discussed were the following: What factors prevent co-operative managers from buying goods from the Co-operative Central Exchange; the manager's relation to co-operative education; elimination of unnecessary brands from the co operative stores; developing co-opera tion between producers (farmers) and consumers; and the regulation of credit relations between the Co-opera tive Central Exchange and the stores. An interesting feature at the meet ing was a vote taken in reference to which soap company and which cereal concern among the several candidates should receive the patronage of the co-operative stores represented. Here the minority bound itself to abide by the decision of the majority, what ever it would be. Thus many un necessary brand will be eliminated from the stores and the Exchange will be able to order these goods by the carload. Thus far it has been compelled to buy the goods through a bigger local wholesale house, as the amounts ordered by the stores have not been sufficient to warrant buying by the carload. This again has been mainly due to the fact that the stores have patronized many different manufacturers of these goods and have thus scattered their purchasing power too much. A resolution calling for a more ef fective support of the central organ ization by the stores was adopted unanimously. Hope was expressed that a similar conference be called by the Exchange in connection with its next annual meeting. Undoubtedly this • managers' con ference did a good deal to cement more closely the co-operative societies which are grouping around the Co operative Central Exchange. The at tending managers expressed their satisfaction with the deliberations of the conference as well as their con fidence in the future of the movement in general. A CO-OPERATIVE STUDY CLUB The Co-operative Educational In stitute of Brooklyn, New York, • is a preparatory school conducted as a consumers' society by young men and women. Aside from the school work, these young co-operators have organ ized a Co-operative Cultural Club, for the study of economic and other questions, and to spread th