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 me