The source of this uncorrected OCR text may be viewed in the DjVu format at: http://fax.libs.uga.edu/HD2951xC776/co22 or http://purl.galileo.usg.edu/ugafax/HD2951xC776/co22 CO-OPERATION Formerly "The Co-operative Consumer" PUBLISHED MONTHLY BY The Co-operative League or U. b. A. VOLUME VIII January—December 1922 CO-OPERATIVE LEAGUE OF U. S. A. 167 West 12tli Street, New York City 1922 INDEX A PAGE Accessory Co-operation ...................................-...-•••••••••••••• 40 Adviser for Groton, N. Y., An................................................ 213 Alanne, S. ...........--•••••••-•••••••••••••-•••••••••••••••••••••••••••••• 85 American Labor Party's Endorsement....................................... 173 Arnold, Mary £......................-••••••••••••••••••••••••••••••••••••• 97 Artists' Co-operative, An. ................................................... 14 Ashland Society, The........................................................ 212 Associated Grange Warehouse, Seattle, Wash.. ................................ 168 Australian Co-operation.................................................. 142, 188 Austria, The Co-operative Movement in................................... 142, 169 B Babson's Advice to Throttle Co-operation ..................................... 13 Backward British Step...................................................... 176 Bakeries, Conference of Massachusetts........................................ 107 Bakeries, Observations of Co-operative........................................ 209 Bakery at Paterson, N. J..................................................... 80 Baltimore Co-operative Society Helps Miners.................................. 105 Bank of Philadelphia, Labor. ................................................ 52 Banking .....................................................56, 92, 130, 159, 167 Basel, Switzerland ......................................................... 23 Be a Corporation ........................................................... 182 Beauty, The Need of......................................................... 147 Belgian Congress ........................................................... 179 Belgian Co-operators and War Invaders...................................... 77 Belgian Co-operators Purchase Fishing Boats. ................................ 16 Berlin Co-operative Theatre................................................. 176 Blazowska, Margaret ....................................................... 8 Bloomington, Illinois ....................................................... 87 Bolton, England ............................................................ 149 Book Review, Co-operative Anthology—Totomiantz............................. 18 Book Review, Consumers' Co-operative Movement—Webb. ...................... 36 Boston Co-operative Bank ................................................... 72 Boycott Co-operatives ....................................................... 16 British Co-operation in 1921.................................................. 160 British Co-operative Congress at Brighton..................................... 140 British Co-operative Societies ................................................ 113 British Co-operative Union. .................................................. 141 British Honors to Co-operators............................................... 147 Brooton, Minnesota ........................................................ 175 Building Guild, The Fate of a. ............................................... 77 Buying Club for "Middle Class" Co-operators.................................. 25 Buyers' Strike, A........................................................... 20 C Call to Co-operative Congress, Chicago, Illinois................................. 112 Canada, Encouragement From .............................................. 216 Canadian Co-operative Congress.............................................. 178 Canadian Co-operative Progress.............................................. 125 Can Co-operation Defeat Monopolies?......................................... 182 Carlsbad Congress .......................................................... 77 Catholics and the Co-operative Movement..................................... 44 INDEX Census Returns on Co-operation.............................................. 15 Central States Co-operative Society Feeds Miners............................ 1, 12 Cheapness Not the Aim..................................................... 93 Chicago Congress, The ...................................................... 199 China, Co-operation in....................................................... 105 Clarinda, Iowa............................................................. 174 Cleveland Co-operative Dairy ............................12, 30, 126, 138, 174, 194 Cleveland District League.................................................71, 139 Cleveland, Workingmen's Co-operative of...................................... 51 Closser, W. H. ............................................................. 7 Coal, A Story in ............................................................ 78 Coal, Cheap ................................................................ 161 Coal, How to Run........................................................... 145 Coal, Plan for.............................................................. 189 Coal Strike, The............................................................ 73 Coeur D'Alene, Idaho ....................................................... 175 Colleges Teach Co-operation ................................................. 15 Committees and Program for Third Co-operative Congress..................... 153 Conference of Co-operative Managers in Minnesota............................. 103 Congresses..........................77, 112, 140, 153, 178, 179, 199, 202, 205, 213 Convention of Northern States............................................52, 214 Convention of Ohio District League........................................... 157 Co-operation Dawns Again in Ireland......................................... S2 Co-operation's Duty to Trade Unionists....................................... 40 Co-operation in England and Wales........................................... 41 Co-operation, the One Hope in Europe......................................... 108 Co-operation Saves Strikes .................................................. 195 Co-operative Bakeries, Observations of........................................ 209 Co-operative Bakeries Feed Strikers.......................................... 85 Co-operative Coal Mine in England........................................... 148 Co-operative Congress, Program and Committees............................... 153 Co-operative League House Warming......................................... 100 "Co-operative" League of Pennsylvania (Non-Co-operative) ..................... 69 Co-operative Society of America.............................................. 69 Co-operatives and the Business Depression.................................... 86 Co-operatives and Russian Relief............................................. 88 Co-operatives Cut the Price of Bread.......................................... 16 Co-operatives Launch Fishing Flotilla......................................... 16 Co-operators Do Not Make Sales............................................. 191 Co-operators Elected to U. S. Senate.......................................... 215 Co-operators to Rehabilitate France ................................ .......... 215 Correspondence. .......................17, 35, 54, 72, 90, 107, 126, 143, 162, 180, 196 Course on Co-operation...................................................... 121 Course on Co-operation in French College ..................................... 84 Credit Union Bank in Boston................................................. 15 Credit Unions. ...........................................................82, 89 Crestline, Ohio ............................................................. 35 Cutting Expenses .......................................................... 15 Czecho-Slovakia ........................................................123, 191 D Dangers of the Big Society................................................... 131 Davies, M. L.—Inaugural Address............................................ 144 Dedication of The League House............................................. 100 Democratic Control and Strikes.............................................. 124 Denmark ..............................................................106, 124 INDEX PAGE Desbofough, E"ng., Shoe Factory.....................,.-...-.,.,,..,,.,,........ 94 Despite Mistakes. ............................................................ Ill Difference Between Co-operation and "Business"............................... 109 Dillonvale, Ohio ....................-•.-•...'..••-••......-.............•.... 194 Donnelly, Thos. J., Pres. Ohio District League, Address of...................... 158 Dcn't Ask Too Much of the Store............................................ 3 Dunleavy, F. J. .............. ^.••••• ^-•••-••.••.-.... ^-...^............... 188 Duties of Co-operators............................^...^......f............f.. 3 E Economics of the "Manage X"............ ...................................... 151 Education at Scranton, Pa................................................... 107 Education of British Co-operative Union...................................... 14l Educational Work.................................................63, 65, 76, 99 Efficiency, Not Class........................................................ 128 Electricity in Switzerland and Russia, Co-operative............................ 53 Elimination of Waste in the Restaurant...................................... 97 Encouragement From Canada .............................................. 216 Engineers' Bank Pays Savings Returns....................................... 159 England and Wales, Co-operation in.......................................... 41 English Survey, An......................................................... 178 Erwin, Tenn. ............................................................... 194 European Impressions ..............................................5, 23, 41, 58 F Fairhope, Ala. ............................................................. 126 Fake Co-operation .......................................................... 56 Fake Co-operatives in Los Angeles .......................................... 160 Farmers Buy Together ..................................................... 160 Farmers, The .............................................................. 21 Farmers, The Plight of the .................................................. 164 Farmers' Union Co-operative Insurance ...................................... 30 Farmers' Union Stores in Nebraska .......................................... 35 Farmers' Union Teaches Labor .............................................. 92 Farmers' Union, The ....................................................... 175 Farmington, Illinois, Store Thrives........................................... 31 Fascist! Destroy Co-operatives ............................................... 191 Federal Reserve Bank ...................................................92, 130 Finland Keeps on the Move ................................................. 53 Fire Insurance at Wocdridge, N. Y. .......................................... 71 Fishing Flotilla Launched................................................... 16 Fogelson, B. ............................................................... 118 Food For Thought and Use ................................................. 75 France, Co-operators to Rehabilitate.......................................... 215 Franklin Co-operative Creamery, Minneapolis ........................... 14, 88, 173 French Co-operative Bank .................................................. 177 French "Co-operative Day", A ............................................... 34 French Distrust Government ................................................ 176 French Miners' Plan for Coal ............................................... 189 French Wedding Gift ...................................................... 161 Freundlich, Emmy ......................................................... 169 Fun in the Co-operative Movement ........................................... 183 G Gabardo, G., "A True Story of French Life" .................................. 151 Genoa, Straight From ...................................................... 129 INDEX PAGE German Consumers Take Over Government Works ............................. 175 German Co-operative Congress .............................................. 178 German Pish Industry ........................••••••••••........••••..-•••• 193 German Share Capital ...................................................... 191 Germany, Co-operation in ................................................... 5 Get-Together Club Lectures ................................................. 87 Gide, Chas., "Consumers' Co-operative Societies" ............................. 178 Glasgow, Scotland .......................................................... 58 Glasgow Co-operative Bakers Reduce Bread ................................... 16 Goedhart, G. J. D. C., Letter from ............................................ 198 Government Loans to Co-operatives ......................................... 37 Groton, N. Y., An Adviser for ............................................... 213 H Hamburg Co-operative Union School for State Officials ......................... 4 Health Protection in Madrid ................................................ 161 Henryetta, Oklahoma, Co-operative Society ................................... 18 Hoan, Daniel W., Mayor of Milwaukee ........................................ 114 Honors Thrust Upon Us .................•••••••••••••••••••••••••••••••••••• 147 Hospital, Co-operative, in Hungary .......................................... 34 Hospitals in Spain ......................................................... 161 Housing in Europe ......................................................... 29 Housing in Milwaukee ...................................................... 116 Housing Policy in Russia ................................................... 16 How Co-operation Can Win ................................................. 55 How to Know the Wild Co-ops ............................................... 2 Hucknall, England, Interests the Children ..................................... 72 Hungarian Doctors Co-operate ............................................... 33 I Incorporate, Co-operative Societies Should .................................... 93 Incorporation of The Co-operative League .................................... 62 Insurance, Co-operative, in New York......................................... 118 Insurance in Great Britain .................................................. 89 Insurance, Life ............................................................ 200 Insurance of Farmers' Union ............................................... 30 Intercollegiate Co-operative Society .......................................... 60 International Alliance Central Committee .................................... 105 International Co-operative Alliance Report on Russia .......................... 125 International Co-operative Summer School .................................... 124 International Congress, The Next ........................................... 213 Ireland, Co-operation in .................................................... 32 Ireland, The Future of ...................................................... 89 Italian Co-operatives ....................................................... 54 Italian Government Aids Co-operation ....................................... 33 It Pays to Stick ............................................................ 26 Japan, Co-operative Movement in ............................................ 190 Jewish Societies Affiliate with League ........................................ 137 Jewish Societies, Conference of .............................................. 64 Job Cursed the Day He Was Born ........................................... 166 K Kalamazoo, Michigan, Progressing ........................................... 126 Kansas Strikers Fed by C. S. C. S. .......................................... 12 INDEX Kaufmaun, Heinrich ................ Keen, George, Letter from ........... King, Dr. Wm. and the "Co-operator"- Kittering, England .................. PAGE ....................................... 142 ....................................... 196 -Book Review .......................... 144 .....................................77, 94 Labor Council of Nashville, Tennessee, Endorses League ........................ 172 Labor Federations Endorse Co-operation ..................................... 102 Labor Leader Visits Italian Co-operatives ..................................... 54 Laundry at Little Rock a Success ............................................. 17 Laundry, The Co-operative, of Lynn .......................................... 134 Laundry, The Greenwich Village............................................. 104 Law, Model ................................................................ 29 League Helps Co-operative Cigar-makers ..................................... 195 League House, The ........................................................ 62 League Needs for 1922 ...................................................... 10 Lehighton, Pennsylvania, Co-operative Association............................. 78 Let's Work Together ........................................................ 207 Lewiston Association Doubles Business ....................................... 139 Life Insurance Saves Life ................................................... 200 Light Ahead .............................................................. 201 Llano Colony, The ................................................. 128, 132, 196 Loans to Co-operatives ...................................................... 37 Locked Out Rush Run Miners Send Money .................................... 215 London Co-operatives ....................................................... 41 Long, Cedric ....................................................25, 78, 150, 209 M McGowan, R. A. ........................................................... 44 Maintenance of Way Brotherhood .......................................... 84, 105 Making the Pictures ........................................................ 76 Manager, The Honest ....................................................... Ill Marquette University Chapter, I. C. S. ...................................... 60 Maynard, A Town in New England .......................................... 133 Medical Co-operation ..................................................... 34, 161 Milk and Health, Co-operative ............................................... 122 Milk Distribution ....................................................... 160, 194 Milk Strikers Organize a Co-operative Creamery ............................... 12 Milwaukee, The Co-operative Movement in .................................... 114 Minneapolis Labor Studies Co-operation ..................................... 14 Mistakes of Corona, L. I. ................................................... 121 Model Co-operative Law ..................................................29, 100 Model Educational Letter ...............................................'....' 65 Monopolies, Can Co-operation Defeat ........................................ 182 Mount Olive Co-operative Society ..........................................86, 160 Moving Picture Theatre, Co-operative ...................................... .' 30 N Nash, Marion L. ............................. 99 National Co-operative Association .......................................... 68 Nebraska Co-operative Stores ............................. ... "' 35 Nebraska, Farmers' Union of ..........'.'.'.'.'.'.'.'.'.".'.""""""""""""" 50 Nebraska, Report from ........................ 1.."".'.'.".'.".".".". ^ " ^ "'"' 205 Nebraska Survey .................. . ....................... News and Comment ...............'.'.'.'.'.'.'.'.'.'.".".".'.'.".'12,' 30,' 49,'66,' 85,' 157,' 171, 194 INDEX FAGU New Year Greetings ... .,..-,..• *. <............. ^..-..• < *..,.... f............. 9 New York Co-operators Do Business of $1,600,000.............................. 70 New York Credit Unions Unite ............................................. 82 New Zealand Co-operative Society ............................................ 15 Next International Congress, The .......................................... 213 Ninety-Year Old Co-operative .............................................. 88 Northern States Co-operative League .......................52, 70, 95, 159, 171, 214 Norway, Co-operation in .................................................... 190 Nothing Fails Like Success ................................................. 56 Nurnberg, Germany Co-operative Society ..................................... 5 O Oklahoma Farmers Save .................................................... 88 One Cent on the Dollar "National Co-operative Association" .................... 68 One Vote, One Member, Origin of ............................................ 186 Our Co-operative Cafeteria, N. Y. City ..............................31, 53, 99, 103 Pacific Co-operative League in Receivers Hands ............................... 66 Paducah, Kentucky ......................................................... 198 Paterson, New Jersey, Bakery................................................ 80 Philadelphia, The Producers' and Consumers' Bank of ......................... 52 Picnic at Bloomington, Illinois ............................................... 138 Pine Bluff, Arkansas ...................................................106, 197 Pittsburgh "Co-operative League" Defeated .................................. 122 Plymouth Society Has Bad and Good Fortune ................................. 113 Poland, Progress in ....................................................... 190 Policies, Practical and Pressing ............................................. 10 Poor Reason for a Co-operative Store ........................................ 213 Posters, Material for ...................................................... 156 Potatoes Don't Grow By The Pot ............................................ 165 Practical Advice .......................................................... 64 President's Address at Third Co-operative Congress ........................... 184 Princeton, Mo. ............................................................. 194 Producers' and Consumers' Bank of Philadelphia, The ........................ 52 Producers' Factories in England, Co-operative ................................ 94 Profits, Sales and Taxes ................................................... 38 0. Questions to Ask Promoters of Fake Co-operation ............................ 3 R Railroad Brotherhood Endorses Co-operation .................................. 139 Railroads for the Consumers ............................................... 163 Rappaport, Harry ......................................................182, 186 Rayland, Ohio ............................................................. 123 Relatives of Directors ...................................................... 57 Report from Nebraska ..................................................... 205 Report of League Activities for 1921 ........................................ 28 Reports of Illinois Societies .................................................. 51 Reports to Third Co-operative Congress .................................. .207, 209 Republicans and Democrats ................................................. 183 Restaurant, Co-operative ..............................................97, 99, 103 Restaurant, Elimination of Waste in the ..................................... 97 Revolution?, When Will The, Come .......................................... 91 Ringing Up A Quorum ...................................................... 195 INDEX PAGE 26 Rose, William, British Pioneer .......................................... Rosedale, Pennsylvania ..................................................... 175 Roseland Co-operators Save 110 Per Cent. .................................... 104 Roumama 124 Royal Arsenal Society ...................................................... 131 Rural Credits, Co-operative Banking ......................................... 167 Rush Run Miners Send Money .............................................. 215 Russia, International Co-operative Alliance Report on ......................... 125 Russian Co-operative Societies Buy Raw Material ............................ 123 Russian Co-operatives Trade Policy .................................:....... 192 Russian Delegate to Cooperative Congress in Chicago ......................... 171 Russian Fair, The Great .................................................... 141 Russian Situation ......................................................... 46 Russian Soviet Housing Policy ............................................. 16 S San Bernardino Takes Over a Bank .......................................... 143 San Diego, California, Victory............................................... 138 Sault Ste Marie, Michigan .............................................7, 70, 143 Savings-Return or No....................................................... 77 School, The Co-operative League's.........................................63, 76 Scotch Help Russia ....................................................... 142 Scotland, Co-operation in ................................................... 58 Scottish Co-operative Societies, Early ........................................ 41 Scranton, Pennsylvania, Course on Co-operation............................... 70 Seattle Grange Warehouse Takes Over Food Products Association .............. 139 Secretary, The Educated .................................................... 76 Soap, A Story in ........................................................... 168 Socialist Error, A .......................................................... 21 Soo Co-operative Distributes $12,000 ......................................... 70 Sound Advice from the Canadian Union ...................................... 83 Spain, Co-operative Hospitals in ............................................ 161 Spirit of Christmas ......................................................... 216 Spurious Co-operation in Scranton ........................................... 119 Stafford Springs, Co-operation in ............................................ 150 Standard Oil Company ..................................................... 181 State Goes to the Co-operative School, The .............. ................... 4 Stiles, T. D., Letter from .................................................... 198 Store, Don't Ask Too Much of the ........................................... 3 Store Managers, Advice to ................................47, 83, 101, 119, 136, 155 Strike Aid of British Co-operatives ........................................... 140 Strike Insurance ........................................................... 32 Strikers Aided by American Co-operatives ................................... 1 Strikers Fed by Co-operatives ............................................... 85 Subscription Contest ................................................... 120, 216 Success at Red Wing, Minnesota ............................................. 122 Superior Finns, The ........................................................ 211 Sweden, Progress in ....................................................... 192 Swiss Trust Boycotts Co-operatives .......................................... 16 Switzerland, Co-operation in ................................................ 23 Symbol and Word .......................................................... £05 T Taylor Springs, Illinois ..................................................... 174 Taxation of Co-operative Societies in England ................................ 38 Technical Advice to League's Members ....................................... 11 INDEX PAGE Theatre Collapses, A ....................................................... 39 Theatre, Co-operative Moving Picture ................................. ...... 30 Theatre, Berlin Co-operative ................................................. 176 Third Co-operative Congress, Chicago ........................... 109, 136, 171, 202 Thompson, Dorothy ........................................................ 108 Three Reasons ............................................................. 14?. Throttling Co-operation .................................................... 13 Totomiantz, Prof. V., "Co-operative Anthology" .............................. 18 Trade Unionists, Co-operation's Duty to .................................... 40 Tade Unions Burn Money .................................................. 128 Training for the Service of the Workers ...................................... 1 Transactions of the Third Co-operative Congress ............................. 205 Trust Busting .............................................................. 181 Tucumcari, New Mexico, Society............................................. 77 U Ukrainian Co-operation ................................................... 8, 142 Unemployed, The ........................................................... 135 United Brotherhood of Maintenance of Way Employees......................84, 105 U. S. Senate, Oo-operators Elected to ........................................ 215 Utica, N. Y. Co-operative Society ......................................... 17, 85 V Vacations for Co-operators ................................................. 117 Vatican, At the ............................................................ 53 Villa Grove, A 50 Per Cent. Co-operative Town ............................... 13 Vital Issues .............................1, 19, 37, 55, 73, 91, 109, 127, 145, 163, 181 W Wages Before Dividends ................................................... 199 Warbasse, J. P. ................. 1, 5, 19, 23, 37, 41, 55, 58, 73, 77, 91, 109, 113, 127, 145, 163. 182, 184, 199, 211 Warning Concerning the Co-operative League of America, of Pennsylvania (Non- Co-operative) .......................................................... 69 Warning from Missouri .................................................... 31 Waukegan, Illinois Opens New Dairy ..................................... 86, 160 We Are Onto Genoa ........................................................ 74 Webb, S. and B., "Consumers' Co-operative Movement" ........................ 36 What We Owe the Poor ..................................................... 130 When Will the Revolution Come? ............................................ 91 Wilbrandt, Prof. Robert "Konsum-Genossenschaften" .......................... 144 Wisdom from Germany .................................................... 33 Womens' Guild ............................................................ 29 Woodcock, Leslie E. ......................................................... 207 Woolwich, England, Co-operative Society...................................26, 41 Word and Symbol Contest .................:............................. .11, 205 - Workers Need Training .................................................... 166 Workers, Training for the Service of the ..................................... 1 Workers Unite at Their Peril ............................................... 146 Y Yardley, Washington, Co-operative Store...................................... 35 Y. W. C. A. Co-operative Store in Cleveland ................................. 31 • i A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in vol untary organization, produce and distribute for their own use the things they need Published monthly by the Co-operative League of America, 2 West 13th Street, New York City. J. P. .Warbasse, Editor. Price, $1.00 a year. Entered as second class matter, December 19, 1917, at the Post office at New York, N. Y., under the Act of March 3, 1879. Vol. VIII, No. 1 JANUARY, 1922 10 Cents VITAL ISSUES TRAINING FOR THE SERVICE OF THE WORKERS The news comes that the Central States Co-operative Society has sent a train of ten carloads of food to the striking miners in Kansas— $64,000 worth of food—and that altogether this makes $200,000 worth of food that it has sent to them—forty carloads in all. Let us look into this business a little. Some body must be doing this. It is the sort of thing that does not do itself —this business that is done by the workers for the workers. There are people who say that all that is needed is for the workers to capture the government, take over the industries, and then tell the su perintendent of what was formerly a capitalistic wholesale grocery con cern to send food to the striking miners. It sounds easy. It is the soap-box method. But history shows that people who have got their training by administering business for the profit-making interests do not readily change their psychol ogy. The Russian Soviet Republic tried the political revolutionary method, and executives of capital istic training sabotaged the workers all along the line. The workers who study history are learning that the best people to direct and or ganize industry in the interest of the workers are people who are trained and experienced in doing just that thing. And the Co-opera tive Consumers' Movement is the only organization of the workers that is steadily growing and success fully producing and distributing for use, and that is training people from the ranks of labor to serve the workers in administering industries. Aside from the men who had the imagination and vision to conceive of it, somebody had to do it. Who directed this job for the, Kansas miners? Who got the food togeth er, saw that it was put on the right cars and saw that the cars went to the right place, to feed the families of the miners? Not the superintend ent of a capitalistic grocery concern. I would not like to trust him with the job. He and his concern might do it, but they would have to have their rakeoff; and their heart is not in the undertaking. But the work ers in the United States are raising up men and giving them the train ing to do this sort of thing. The man who did this job is Bob McKechan, manager of the Central States Co-operative Wholesale of East St. Louis, 111. Others of the staff di^that organization contrib uted their services; they also are working men trained to serve the Of CO-OPERATION workers. How did McKechan learn how to do this sort of thing; it is in the realm of big business? When he was a coal miner he joined the Gillespie Co-operative Society; then he became manager of its little store; and then he became manager of the Central States Co-operative Wholesale. He began at the bot tom, and as he got experience he moved on up. That is the kind of training that fits a man to adminis ter industries for the people. He is a friend of the workers; he knows the workers; and he has practical training in administering industry for them. These miners of Kansas, unfor tunately, are not organized as con sumers. They had to turn to the nearest group that was. The Cen tral States Wholesale performed all of the service free of charge and sold goods to them at cost. They gave them the advantage of saving both the wholesalers' and retailers' profits, and the advantage of get ting pure food, and not having any thing put over on them. And they got the food they needed. This sort of schooling, that McKechan and his associates are getting, will some day put the workers in con trol of the situation. Thousands and thousands of workers through out the world are now getting this training in the Co-operative Move ment. The method is slow and arduous. It cannot be gotten out of books or lectures. It requires pains, and work and patience. But there is no other way. And with out it victory at the polls or revolu tion will fail. Victory without the people behind it—people who can control industries, who know how to run industries—will cost more than it is worth. The captured in dustries cannot be held unless they can deliver the goods to the people. And if the people are sufficiently trained to run their industries they will find that they have captured them without a victory at the polls and without revolution. HOW TO KNOW THE WILD CO-OPS There is a little book called "How to Know the Wild Flowers." It tells their names and peculiari ties. Among other things it tells how to distinguish mushrooms from toadstools. It gives much useful in formation. The people of the Unit ed States need such a book to guide them in the fields of Co-operation. "How to Know the Wild Co-ops" would be a good name for it. Every trade union should have several copies, and for initiation each mem ber might learn it by heart. There are simple tests which may be applied to things that claim to be co-operative that will determine whether they are really flowers or weeds; whether they are safe or poisonous. A smart fellow, called an "organ izer," comes to town and talks about his old college chums, the Rochdale pioneers. He tells the working peo ple that the workers are just as smart today as those old fellows in Rochdale were, and closes by ex claiming: "Let us have a society right here and now." He then pro ceeds to tell how easy it is, and that all the people need to do is to buy a share in the great society that he represents, and a store will be opened for them the first of next week that will put the private mer chants out of business and return dividends that will cut the high cost of living all to pieces. He tells of the wonders of the "Corobberating Society of America," or the great "National Solesale," or the "Spe cific Leak," or the "Roachvale Sores Incopperated." All that the simple people have to do is to pay in their money, patronize the store, and every night the money from the cash register will be sent to the great and good and self-sacrificing men at the central office, and there you have a Co-operative Movement! Here is where the key to "How to Know the Wild Things" comes in. Here are a few acid tests: CO-OPERATION (1) Ask to see the by-laws of the wonderful society. Is it co-opera tive? Has each member one vote and no more? Does capital receive not more than a fixed interest rate? What is done with the surplus sav ings? Do the members get them in proportion to their patronage? (2) Ask to see the "organizer's" credentials from some labor body. It is a good thing to know just what labor leaders, if any, are behind the scheme. Some of the fakers now in jail carried good labor credentials. (3) Under what state law is the society incorporated? Is it incor porated as a co-operative society? Look out here for the "deed of trust" game that puts the control of the whole business in the hands of three trustees, who can take out of it all they want and the members have no say. (4) How are the officers elected, or are they appointed? Who ap points them? (5) How much is the organizer paid for selling stock or getting members, and who pays him? Is he paid a commission on sale of stock? (6) How much control of this store and its funds will the members have after it is started ? (7) What are the members going to get for the money they put in? How much goods will be put on the shelves ? There are smart organizers who actually give what are apparently satisfactory answers to all of these questions. On the Pacific coast one of these carried a different set of by-laws in his pocket from the by laws of his organization. But these fellows get fussed when the hard questions are asked. Just keep poking the questions at them and see if they respond to the test of genuine Co-operation. Some of these things are not even toadstools. Some are like the Congressman and his seeds: his. arguments won't go down and his seeds won't come up. And one more point: Be sure that you know the right answer yourself when you ask the question. These chaps have much skill in making people think the wrong an swer is the right answer. DON'T ASK TOO MUCH OF THE STORE We have a letter from a society in Missouri which says: "Our store is doing well, but unable to make a net earning sufficient to satisfy all members. They feel that they should re ceive not less than 10 per cent savings returns every six months. The 'cash-and- carry' stores owned by the A. & P. Co., and located all over town, seem to give us the most trouble. Our members want their store to compete with this chain of stores, while we maintain a good delivery system which is demanded by our stockholders." This is hardly fair. Still, we have heard of a society where some of the members made purchases at the A. & P. "cash-and-carry" store and brought their packages around to the co-operative store and asked the manager to send them home in the Co-op, delivery truck! Any member of a co-operative society who is going into a private profit store to buy something that he could get at his own store should stop and ask himself a few ques tions: Is it fair to the other mem bers? Have not they the same right to be disloyal to our store that I have? If they should all do the thing that I am thinking of doing how long would we have a co-oper ative store? Do I want the co operative store to fail or succeed? If it fails who will be responsible and how much better off or worse off will the people of this town be? Am I playing the game fair? These are some of the questions he should ask himself. But there are other questions that a still bigger man will ask himself: Suppose that I do save a few cents in this A. & P. store; do I never CO-OPERATION CO-OPERATION spend any money for a good cause? I can afford to go to the movies once in a while; I smoke, I buy a drink occasionally, I buy a capitalist pa per every day that lies to me about my job and my store; I would be better off to save that money and spend it on something that is good, on something that is building a bet ter world, not only for me, but for my children? Suppose it does cost me a little more in my co-operative store; if I stand by it and make it increase, then it will save me money in the end. We started this store of ours in good faith; the fellows who want to make profits out of us have tried to destroy it; will I be one to help them? How are the working people ever going to learn to run business for themselves unless we stick by our own undertakings? If this private profit store sells cheap er than my store does, why don't I help our board find out the reason why, and then turn in and make our store do as well? There is a reason for everything; am I the sort of fel low who just gives up and acknowl edges that he is licked and can't make a success of Co-operation, or did I mean business when I joined the co-operative society? Am I a Co-operator or a piker? But suppose that the co-operative store does sell as cheap, or cheaper, than the private store. Usually, the co-operative store, in the long run, is cheapest. Then, what is the mem ber to do? The short weight, the adulterations, the—I don't like to mention all of the things that the profit business has learned to put over on the innocent consumer, but if any Co-operator will ask himself one more simple question, he will be thinking about something that may help him much: Where am I apt to fare best, at the hands of the man who is dealing with me for the one ;and only purpose of making as much money out of me as he can, or at my own hands, in my own store, in which I have as much of a voice as anybody, and which is run not to make money out of me, but to serve me? Don't ask too much of the store; but remember that the store has an equal right to ask something of the member. THE STATE GOES TO THE CO OPERATIVE SCHOOL The Minister of the Interior, Dom- inicus, before the Prussian Landtag on the 14th of October, according to "Le Co-operateur Suisse," of Novem ber 2, 1921, said that in the se lection and in the advancement of high officials, it was necessary from now on to pay particular attention to the development of the modern social spirit of the candidates. One of the best means for encouraging this spirit is, in his opinion, to send these candidates to work for a pe riod of several months in the service of the great co-operatives, or in the "maisons du peuple," in order to find out a little what is the life of the worker and the real point of view of the worker, and also to learn from them the methods of economic administration. In another declaration on the 18th of October, this same Minister an nounced that the Co-operative Union of Hamburg is readily dis posed to lend itself to this purpose. Thus we see that the State is com ing to school to the Co-operative Movement. This is only the begin ning of the educational work which the world will yet witness. Today in Europe the co-operative societies are carrying on economic affairs more efficiently than either the gov ernments or capitalistic business. The Co-operative Movement must be the teacher and leader. J. P. W. EUROPEAN IMPRESSIONS CO-OPERATION IN GERMANY By J. P. WARBASSE (Concluded) Every day for a month we had visited co-operative societies by pre- arrangement and introduction. We had seen the great institutions in the great centers. Now we determined to go to some small city of which we knew nothing. It might have a co operative society or it might not; we would take a chance. Niirnberg would do—half way between Carls bad and Basel. We did not know a soul there nor the name of a hotel. Just for variety's sake we hoped for something small, struggling and in significant, or new, or nothing at all— something that might make us think of home. We refrained from speak ing the word until we sat down to dinner in the hotel; then, with tim orous misgivings, I asked the waiter if there were a co-operative society in Niirnberg. His face beamed with interest. Of course! He was a mem ber. How many members? He did not know, but the membership must be about 50,000. How many fami lies in Niirnberg? About 100,000 (400,000 population). The telephone book revealed nearly a page of num bers given to the society. We went to its central office next morning unannounced and sent in our cards to the directors. We were invited in and saw spread on the table of the president of the board a copy of a co-operative journal containing my Hamburg speech which they had the goodness to say they had read with interest. Then the same arrange ments were made for our entertain ment as we had experienced every where in Germany. An automobile was ordered for us, guides to take us to the various plants and a pro gram of co-operative sight-seing laid out. The enthusiastic waiter was wrong; the Niirnberg society has only 40,000 members, but that means that nearly one-half of the families in that wonderfully clean and quaint old town are connected with the society. And its growth is steady and sure. The society has 30 stores, a large banking business, a warehouse, a bakery, and a number of dwellings for the members. The bakery has 23 double ovens—that means 46 ovens. The largest private bakery in Niirn berg has 4 double ovens. The bakery of this society is capable of baking all of the bread that is consumed in the city. Besides the model dwellings that the society rents to its members, there is a co-operative building soci ety, which has created a garden city in the suburbs which far surpasses anything that the English garden cities have attained. This society to day, despite the high cost of building, is going on with extensive house con struction. In America the working man pays one-fourth of his income for the rent of a thing he calls home. In Niirnberg the workingman Co- operator pays one-fifteenth of his in come for the rent and up-keep of a whole house which his society owns— and it is a house which he takes pride in calling "home." It is well built— brick, covered with gray stucco; a red tiled roof; a garden of vegetables, fruit trees and grapes in the rear; rose trees in the front yard;,' and climbing vines over the front of the house. I take for example the house of a railroad worker which I inspected from cellar to attic; his salary is 15,000 marks a year, and he pays 595 marks yearly rental. This rental will shortly be increased to 900 marks; but even at that it is less than one- fifteenth of his salary. These brief glimpses of German Co-operation may be regarded as typi cal of what is going on all over Ger man-speaking Europe. Co-operation has been seized upon by the people as the most practical means to win democracy. The German Socialists now realize that they have been mis led by Lassalle and Marx into exag- L CO-OPERATION gerating the possibilities of political action. A Socialist leader and mem ber of the Bavarian Parliament told me that the teachings of Lassalle had done great harm. As a result of a newer understanding, the German working people, while still retaining an interest in political action, are giv ing their real serious attention to Co operation as offering the greatest hope. They have learned by bitter experience that political regimes may come and go, but Co-operation is con stant. In no other field of action do they have such good prospects of holding what they gain. I went to Germany expecting to find the Co-operators poor, hungry and distressed. Germany is poor, hungry and distressed; but these con ditions do not apply to the Co-opera tive Movement; the distress is of po litical origin. The Co-operative Move ment is independent and self-reliant and comparatively prosperous. I have studied Co-operation in ten of the leading countries of the world; and I can say that the German Movement possesses qualities which will tend to make it supreme. Germany leads the world in science and technical effi ciency. Co-operation is taking advan tage of these qualities. It is em ploying experts. This democratic or ganization of the people is hiring sa vants to do the things which the plain people cannot do. The plan is succeeding. Every where is efficiency—the most marvel- ous efficiency. In the administration of financial matters are experts—the sort of men who in our country be come the masters of finance; in Ger many the Co-operative Movement is getting them. At the head of the factories are directors who embody the genius for organization and ad ministration. Under them are tech nical experts—engineers, chemists, technicians. The chemical laboratory is found in every great factory and industry, not only making tests of products but inventing new methods and synthetic substances. Even in the warehouses, the chemical labora tory tests commodities bought and sold. The value of this use of science is beyond calculation. Compared with other countries, the German Movement is also character ized by cleanliness and by lack of waste. I think the two are related. I have visited soap factories and pre serve factories in several countries. In some the floors were slippery with soap or sticky with preserves. But in the German factories the floors and side walls were of tile, and always spotlessly clean. Perfect machines were doing the work better than the unsteady human hand. Labor saving devices are much employed. I recall a great nine-story building with an enormous output; and think of my wonderment at the silence and the small number of people—a beautiful building, artistic in every detail, stair ways of soft colored glazed porcelain, hand-carved wood-work, paintings, vases, stained glass windows,, and scrupulous cleanliness to the utmost corner. Here was order, quiet, and a great silently moving current from the intake of raw materials to the out-go of finished product. Here were silently moving passenger ele vators without an attendant; bub bling founts of water on each floor; a spittoon at each stair landing, through which fresh water constantly flowed; a dining room on the top floor for the employees, where one's order was waiting for him already served and paid for and warm st his place the minute he walked in the room; a heating system for winter, which could use either coal, coke or crude oil. All of the machinery of this great plant was run by an engine. I have been in many engine rooms; they are greasy, dirty and hot, and so are the engineers. This was the latter part of July. The door opened and I walked into the engine room of this co-operative plant; a single great square room of lofty height; the floor was of tile; the side-walls were glazed green art-tile. There was no spot or stain. The room sug gested an enormous Roman bath chamber, but for the fact that in the center stood two Diesel engines. CO-OPERATION The only motion to be seen were the two huge fly wheels, silently revolv ing, creating and storing power. No human being was in the room. These engines, luxuriantly housed, were quietly doing the work of thousands of hands while no eye watched. I did not see him, but it is possible that the engineer sat reading in his study, twenty yards away, inter rupted only by the indicator which informed him that visitors had en tered the engine room. Already the membership of the German Co-operative Movement has surpassed that of the British Move ment. I am persuaded that we shall find Germany taking the lead of the world in this field unless the German people are still further suppressed and crushed by that greatest modern atrocity which sprang from the loins of Wilson, George and Clemenceau and was spawned in the womb of Versailles. There is something in the German genius that makes for Co- opeiation. Along the French border one sees the change. The French towns are poor in Co-operation; the German towns are rich. In Switzer land, the German population have pro duced a Co-operative Movement which in many respects is the best the world has to offer; in French and Italian Switzerland the Movement has about one-half the potency. In dismembered Austria it is the Ger man population that is taking the lead. This Movement in Germany had attained to its highest development just before the war. It was ready for a great forward swing when the war burst upon Europe and shattered its hopes. But that impetus is still operative. The hope is that the pol itical governments will be satisfied with the damage they have wrought and will leave the people unmolested to work out their problems for the saving of humanity. ROCHDALE SUCCESS AT SAULT STE. MARIE By W. H. CLOSSER The Soo Co-operative Mercantile Association of Sault Ste. Marie, Michigan, was organized in 1913, with a capitalization of $3,000, a very small beginning. But this as sociation was founded by men who saw in true Rochdale Co-operation the very principles, which, if fol lowed, would bring success; and al though they met with many an ob stacle during the first few years of their existence, they clung tena ciously to the above principles, with the result that their record of growth has shown what can be ac complished. During the first three years after organizing, this association was very unfortunate in securing two different managers who were not business men; but what was a more serious drawback these managers were not real Co-operators. This resulted as might be expected. The turning of the keys by the sheriff was looked for daily. At this point came the real constructive ability of the board of directors, and they took hold with the determination to make the business go. A new young manager was decided upon. He was taken from the force of clerks; and this young man certainly worked. He not only worked, but listened to advice of the board. To make a long story short, there has been true Co-operation ever since. This association is very frank in their praise of the help derived from The Co-operative League of America, through Dr. J. P. War- basse, who visited them a year ago. One of the members of this Soo As sociation was elected last year at the convention at Cincinnati, as a member of the Board of Directors of The League. The following comparative state ment shows the business done since 1918. The 1921 prices from good 8 CO-OPERATION authority decreased about 30 per cent from the prices obtained dur ing the year 1920: 1918 January ........ $3,511.88 February ....... 3,347.35 March .......... 4,207.21 April ........... 3,188.06 May ............ 4,983.86 June ............ 5,777.50 July ............ 6,260.54 August .......... 5,450.59 September ....... 6,110.13 October ......... 6,581.65 November ....... 5,342.41 December ........ 5,236.45 1920 January ........ $15,625.40 February ..... 14,407.40 March .......... 19,288.38 April .......... 19,480.09 May ........... 22,930.36 June ........... 22,681.54 July ........... 24,445.68 August ......... 24,300.72 September ...... 22,416.87 October ........ 25,653.04 November ...... 22,888.41 December ...... 21,415.52 This association installed a very modern electric bakery two years ago, with a daily capacity of 1,500 loaves, besides all its pastry baking. This plant is now far too small to take care of the increasing demand, 1919 $6,830.98 8,307.92 7,951.41 10,879.07 12,916.52 13,734.87 15,824.55 16,627.51 15,479.27 16,855.57 17,372.01 22,585.98 1921 $25,800.36 22,756.59 27,671.59 25,188.91 24,713.16 24,031.48 26,510.32 27,950.95 27,692.77 26,197.06 24,408.95 and the association plans to build an addition to its large building, and will erect a modern oven amply large for this increased business. This association is not content sim ply to maintain their present status, but they plan in the near future to completely stock the second floor of their building with dry goods, boots and shoes, having in view the final establishment of a department store. The Soo Association was one of the first to lead out for the estab lishment of a Co-operative League in Upper Michigan at the time the war broke out. But on account of the following depression a district League was not formed. They are, however, buying in a wholesale way many of the staple groceries, and by so doing are cutting out the profits of at least one middleman. This Soo organization own their own three-story stone building, which they term the Main Store, and are operating a bakery, two meat markets, and a chain of four additional grocery stores. We pre dict a continued growth as long as they stand by and maintain the true Rochdale principles. THE TERRORIZATION OF UKRAINIAN CO-OPERATION By MARGARET BLAZOWSKA of Vienna There is no people among whom Co-operation has a more national character than in Ukrainia. In the Ukraine Co-operation and polit ical action for national independ ence are identical. During the time of the Czar Ukrainian Co-operation was regarded by the Russian ruling class as a poorly disguised form of the Ukrainian nationalization move ment; and only the mischance of war compelled the Russian govern ment to permit the development of initiative and freedom to the least degree. However, up to the time of the revolution, the Ukrainian Co operation Movement had existed un der the pressure of the government. During the period of national re construction (1917-20) the Ukrai nian Co-operative movement was brought to full development. This movement is completely unified with the life of the peo ple, and has been the fountain- source of the political power of the Ukraine. Many people upon the political stage have come out of this movement. Therefore, it is easy to explain that the Ukranian Co-operative Movement is always brought to the fore in political af fairs and the intolerance within the movement brought out. People who CO-OPERATION were neutral in the nationalization movement and who worked in the purely co-operative field in the Co operative Movement are pointed out as suspicious. Finally, the nationalization move ment in Ukrainia has been given the character of a purely political party of "evil nature." The people want to be free from Russia. In view of the above facts, it was but natural that the Ukrainian Co operation Movement was oppressed and the terrorism of the Bolsheviki was instituted as a result of the oc cupation of Ukrainia by the Bolshe viki. Unfortunately, certain irre sponsible Co-operators, who contin uously change their political opin ions as a chameleon its color, for want of a Soviet organization in the Ukrainia, use the political situation to exterminate the "unpolitical peo ple" who seem to be dangerous for the above reasons. During the month of July of the past year, the Extraordinary Com mission, in Odessa, arrested all active managers of the Central Ukrainian societies, officials, members who came in from the country, and also the janitors of the co-operative union The most dastardly crime was the killing of the Ukrainian Co- operators. The following were murdered: Members of the board of directors of the Consumers' Union of Odessa and the members of the board of directors of a branch of the Dniprossojus in Odes sa (engineer Boris Blazowsky), su pervisory board member of the Con sumers' Union in Odessa (Tit Klim- iwitsch), directoress of the educa tional department of the Dniprosso jus in Odessa (Katerin Kamarets- ka), and the secretary of the Odes sa branch of the Ukrainian Agricul tural Co-operative Union (John Sirenko). These innocent people had en gaged in no political activities. They had gone about their co-operative business, and remained true Co- operators at their posts to the last moment, in the conviction of the jus tice of the government and their own innocence. On the other hand, others fled to the villages and sought to hide themselves upon the outbreak of the terror. From the above it is evident what difficulties co-operative workers had to contend against. The sad dest fact is that, on account of the political conditions, no opportunity is allowed to care for the poor fam ilies of the murdered Co-operators. It should be the first duty of Co- operators to care for the poor, bereft children of the murdered comrades, but this is made difficult or impossible. THE SEASON'S GREETINGS! With those who work for the cause of Co-operation, who give of them selves and of their substance, we join heart and hand in high hopes and renewed allegiance. May the New Year bring us nearer to the realiza tion of our fond ideals. As we look across the year that has passed we see the gains made, the positions held, and the new foun dations laid. Clouds have cleared away. Steadily the structure in this land of ours is building. It does not rear itself; it is the work of human hands. For those who have given help, we are thankful. For those who have obstructed, we have only the hope that their feet may yet find the path. May we consecrate ourselves anew to the Cause which brings upon its wings peace, justice, and good-will among men. May the strength of those whose hands hold aloft the light increase, and may their number multiply. Greetings, good wishes, and success to all! We go forward together, to ward the sunny slopes of the Land of Cooperation. The Executive Board of The Co-operative League. 10 CO-OPERATION POLICIES—PRACTICAL AND PRESSING FINANCING PROGRESS Who believes strongly enough in the civilizing power of the Co-oper ative Movement to be willing to help finance it? We are going to have a great Movement in the United States some day. But when? That depends on the amount of foundation work we can do now. Maybe we shall have a great Move- mentment here in twenty years from now; maybe in ten; maybe in five years. Those who are striving for it know the obstacles that must be overcome; and they know that the educational and guiding work of The League is necessary to give the substantial results. Already far-seeing people have written in their wills bequests for carrying on the work of The League. But the work must be pushed for ward today. We want the well- wishers of the Co-operative Move ment to live long; we want them to see great results in their own life time. Who will add immediate help for this cause? The Executive Board of The League are carrying too great a bur den. Each is doing the work of two. Our offices in New York are now located in four different places. We need a building of our own, where we can concentrate our ad ministrative work. Who will give The League a building? We have to have it; why delay? Ten district advisers are needed to cover the United States. We know just the work these advisers should do; who will finance them? A district adviser for New England, one for the Pacific States, and one for the eight other districts could save to the Co-operative Movement and to the people ten times their cost. Who will give The League the money to finance an adviser in one district? Where are the ten peo ple to finance the whole field? The executive office work of The League is not met by the dues paid by the member societies. Still more help is needed; where is it coming from? The Labor movement has sunk millions of dollars in fake co-opera tives and spurious ventures during the past twelve months; enough to finance for fifty years the most splendid co-operative educational program that our fondest dreams could conceive of. And The League has earnestly ad vised the working people and begged them not to put money into these very enterprises; but the workers in the United States are not yet ready to lead the way. They still must be shown and educated by those who have the understand ing. In the course of time the pow er as well as the leadership will be theirs; but these are the pioneer days. The call today is for pio neers. Now we are laying the founda tions for a better civilization. We need help. Who will finance the following needs: (1) A building for the League, so that Co-operation in the United States may have a central home of its own, and a fund to endow it, $100,000. (2) A house for The League with out endowment, $50,000. (3) Ten district advisers, one for each of the ten districts in the Unit ed States, at $3,000 a year each, $30,000. (4) A school with 20 scholar ships for training district advisers, store managers, co-operative execu tives and teachers in the Movement, for a year, $20,000. (5) Four Secretaries to do the essential work of the central office at $2,500 a year each, $10,000. (6) A national traveling advis er, to visit societies in every part of the country and advise them in mat" ters of education and administra tion, and all expenses, $5,000. CO-OPERATION 11 (7) One much needed district adviser at once in a district greatly suffering for want of expert advice and guidance, $2,500. (8) The yearly deficit on the printing of educational literature, $1,000. (9) A new typewriter, $100. (10) Individual, non-voting mem bership in the League, $1. All of these things are going to come. We are going to have a great Co-operative Movement in the United States. But when? Much depends upon the response of those who are willing to finance perma nent progress. TECHNICAL ADVICE TO THE LEAGUE'S MEMBERS The League has issued a bulletin to its affiliated member societies for the month of December on the In come Tax, giving legal advice on the items which are not subject to taxa tion, etc. Monthly bulletins are sent regu larly to all affiliated societies. Dur ing the past year these bulletins have covered the following sub jects : Advertising, suggestions for co operative posters. Labor costs and labor efficiency. Practical instructions to clerks. Co-operative education and the employees. Bookkeeping advise and hints on overhead. Women's guilds. How to give credit. Advice on share capital. A model report form for financial statements. Advice on marketing conditions and buying. Societies affiliated with The League get these bulletins every month free of charge. WORD AND SYMBOL FOR THE LEAGUE The contest for a word and sym bol for The League, announced in CO-OPERATION December, 1920, and March, 1921, has closed with over a hundred competitors making contributions. Many of the sym bols submitted are beautiful and ex pressive works of art. Some show real genius. The encouraging fact is that they display a large grasp of the significance of Co-operation. Many represent fine allegorical con ceptions and co-operative symbol ism. Unfortunately, none of the better pictures were simple enough to make reproduction easy, nor could they be grasped quickly and readily carried by the eye. The Executive Board has reluctantly de cided not to accept any symbol that has yet been presented. It further more announces that no word that has been submitted has been found acceptable. Contestants desiring to have their drawings returned may communicate with The League. HOW TO BOOST THE MEETINGS The Tucumcari Co-operative Mer cantile Company, of Tucumcari, New Mexico, has a clever plan for making all the members turn out for the monthly business meeting. Every man, woman and child as he enters the meeting is given a num bered ticket. At the close of the meeting two of these tickets are drawn. The person holding the first number receives a fine 12-pound ham, and the second lucky person gets a 48-pound sack of flour. Need less to say, the attendance is large at such meetings. INDEX TO CO-OPERATION VOL. VII., 1921 Subscribers to CO-OPERATION wishing the index to Vol. VII., 1921, may have the same sent free of charge by sending a two-cent stamp to The Co-operative League, 2 West 13th St., New York, N. Y. 12 CO-OPERATION NEWS AND COMMENT MILK STRIKERS ORGANIZE A CONSUMERS' CO-OPERA TIVE CREAMERY IN CLEVELAND The dairy workers of Cleveland, Ohio, who are on strike to resist the attempt to cut their wages $6.50 per week, have followed the ex ample of their fellow-workers in Minneapolis, and have organized a Consumers' Co-operative Creamery. It will be remembered that the Franklin Co-operative Creamery Association, now doing a business of more than $100,000 a month, grew out of a lockout of the milk drivers about two years ago. At the invitation of the milk workers of Cleveland, some active members of the Minneapolis Co-operative Creamery got busy in Cleveland, showing the milk drivers how to or ganize. A committee of the strikers then went on to Minneapolis to study the organization methods at first hand. The new Cleveland Creamery is to be called The City Co-operative Dairy Company. The society is in corporating, with a capital stock of $20,000, which is to be increased as more capital is required. The ma chinery for the plant is being or dered, and a lease has been signed for premises. Farmers in the vicin ity are giving their heartiest sup port to this new co-operative dairy, which will enable them to get a fair price for their products. In the meantime, collectors are out for sub scriptions to the stock of the co operative, not only among the con suming public, but among the dairy workers as well. Shares sell for $10 each, and no member may own more than $1,000 worth. No mem ber has more than one vote, and proxy voting is not allowed. A rea sonable rate of interest will be paid on shares, and it is planned to set aside reserve and educational funds, after which savings-returns will be paid out of the balance. The City Co-operative Dairy will be a consumers' co-operative, and it is designed to deal justly with the milk producer, the workers and the consumers. The producer is as sured of a fair price, the worker of living wages, and the consumer will get pure products on the co-opera tive basis. During eight months of operation, the Franklin Co-opera tive Creamery in Mineapolis made a net profit of $31,689.00, which will be distributed among the consum ers. What is more, they have forced down the price of milk 3 cents a quart, since they began business, and have furnished milk free from adulterants. What has been done in Minneapolis can be done in Cleveland and elsewhere. When the strike broke out in Cleveland, the city government at tempted to take over one of the large milk depots and distribute milk to the consumers by means of the city trucks. An injunction is sued by a Judge did away with this effort. Now the strikers and the consumers are taking the situation in hand themselves. What the city government cannot do, because of its limited powers, or because of the prohibitions of the courts, the Co- operators are doing today. "CENTRAL STATES CO-OP" FEEDS KANSAS STRIKERS The miners in Kansas who have been out on strike for many months as a protest against their enslave ment by the Kansas Industrial Court Law, will have received $200,000 worth of foodstuffs from the Cen tral States Co-operative Wholesale Society by the time this magazine CO-OPERATION 13 is printed. Forty carloads of flour, beans, bacon and other foodstuffs have been shipped to the striking miners, and more are on their way. At the November, 1921, conven tion of the United Mine Workers of District 12, in Illinois, the miners voted to assess themselves $1 per month per member, for the purpose of providing food free of charge for the Kansas coal miners. There are 90,000 miners in Illinois contribut ing to this fund. The money thus collected is discharged through the Central States Co-operative Whole sale for food supplies. The Co-oper ative does not make a penny's profit on the transaction, the goods being charged against the strikers' fund at the wholesale cost. It should be remembered that the Illinois miners who are now supporting the Kansas miners are the backbone of the Co operative Movement in Illinois, which is now acting as the commis sary department of the labor move ment. The latest report to the Board of Directors of the Central States Co operative Wholesale Society is a good one. Manager Robert McKe- chan reported that in the three months ending October 15, the wholesale had sold $746,052 worth of goods, or about $3,000,000 a year. The overhead expenses of the wholesale were surprisingly low— 1.1 per cent, and the overhead of the retail "union" stores affiliated with the society amounted to 10.3 per cent, which is a low overhead for retail stores. The society is $60,000 richer than it was three months ago. Educational work is going for ward energetically. The Educa tional Director, E. D. MacDougall, is sending out study courses to local societies, literature is being distrib uted broadcast, and Mrs. Mabel W. Cheel, of The League, is being toured by the Educational Depart ment of the "Central States," giving illustrated lectures among the so cieties. A 50 PER CENT CO-OPERATIVE TOWN The "Villa Grove Co-operator," commenting on an article published in last month's issue of CO-OPER ATION, informs us that over 50 per cent of the families of Villa Grove, Illinois, are Co-operators. We re print their figures, in the hope that some other societies can make claim to as good a record as the follow ing: In an article in the November number of "Co-operation," a statement is made that 25 per cent of the people of Waukegan, Illinois, are buying their groceries, meat and milk from the co-operative store. Now, we claim a much better record here, and we think our figures will prove it. Qur 175 members bought $22,661 worth of goods in the last quarter. We sold to non-members $14,760.43 worth, equal to about 115 members, so we are supplying approxi mately 290 families. That is over half the total number of families in Villa Grove, so that we now claim that in proportion to the population of our city, we have more members than any city in Illinois. We also claim that our business with non-members is greater to the total business than any society in this state. If we are wrong we want to be shown. The Villa Grove Co-operative Society has a clever means for pop ularizing Co-operation in the homes. Prizes of $5.00, $3.00 and $2.00 are offered for the best three essays on Consumers' Co-operation written by high school pupils. The pupils whose parents are officers in the society are not eligible for the com petition. THROTTLING CO-OPERATION In one of Roger Babson's finan cial bulletins to his wealthy clients some months ago, he said: "We have the schools. We have the pulpit. The employing class owns the press. There is practically no important newspaper in the United States but is theirs." This, of course, was not news to most of us. But it has not been an easy task to trace the control which advertisers and financial interests exercise over the press. The "Okla homa Leader," a fearless organ of •int - 14 CO-OPERATION CO-OPERATION 15 the farmers and workers of Oklaho ma, in its issue of December 10, has an editorial which exposes a specific instance of an attempt to throttle its advocacy of Co-opera tion, through pressure brought to bear by advertising concerns repre senting private commercial inter ests. We reprint the editorial in part: Co-operation not only saves us money, it not only adds to our well-being mate rially, but it cultivates that happy relation ship with each other which is so necessary to the accomplishment of larger things. Not only that, but it develops and demon strates our social power, and proves indis putably that the workers can do things when they try. Representatives of certain big advertis ing concerns in Oklahoma City called on the "Leader" recently. One of the com mittee observed that the "Leader" was an insistent advocate of co-operative buying and selling by the farmers and wage- earners, to which we pleaded guilty. "Why should we—how can you expect us to— advertise in the "Leader" when it is trying to develop a plan and system which will eventually put us out of business? Why should we patronize your paper and give you money which you are using to prepare a club to knock us in the head with?" The inference is plain. If the "Leader" would quit talking co-operation, if it would suspend or abandon its campaign of educa tion in behalf of co-operation, if it would quit telling the farmers and wage-earners how to escape successfully the plunder machine which is robbing them, then the "Leader" could have a ten-page paper, of which eight pages would be advertising, and it would be a money-making institu tion, independent of a question of circula tion. In other words, a newspaper that tells the truth, one that tells the farmers and wage-earners what is best for them, cannot live with the consent of the big advertisers. AN ARTISTS' CO-OPERATIVE Two hundred and fifty of the most prominent artists in New York City have launched a co-operative store, which will distribute artists' materials on which dealers have hitherto been making huge profits. A staff of experts has been selected, consisting of artists and chemists, to examine all materials offered for sale to artists and to pass on them as to their technical qualities. This is good news for the artists who have paid enormous prices for their paints, oils, canvases, modeling clay and other materials, only to receive inferior materials. Many an artist has painted a picture with paints supposed to be permanent, but which was ruined as soon as it was exposed to the light. A co-opera tive society has been hit upon as the remedy. And, as a matter of fact, Co-operation is the only rem edy. The artists are subscribing the capital with which to start their store. The society has also engaged an attorney to constantly look after the rights of artists in their rela tions with dealers. In addition to this, the artists are to publish their own magazine devoted to technical phases of their work. The organizers of this new de parture in co-operative effort in clude such well-known men as Rob ert Henri, George Bellows, Hayley Lever, William Auerbach Levy and other leaders among the painters and sculptors. Its first headquar ters is the National Arts Club, Grammercy Park. Any class of consumers who set their minds to it can do this same thing. MINNEAPOLIS LABOR STUDIES CO-OPERATION A course in Co-operation is being given at the Workers' College at Minneapolis. The Franklin Co operative Creamery Association was responsible for the inauguration of this course. The idea was sug gested by members of the Co-oper ative to the teachers of the Work ers' College, and what is more, the Franklin Creamery is contributing $400 to subsidize this course. Quan tities of literature are being order ed from The League for the stu dents. WORKERS' COLLEGES TEACH CO-OPERATION Co-operation is now being taught in at least seven of the workers' colleges run in conjunction with the labor movement. Courses on the history, philosophy and tech nique of the Co-operative Move ment are being given in the follow ing colleges: Denver Labor College. Minneapolis Workers' College. Seattle Workers' College. Passaic Trade Union College. Workers' University of New York. Washington (D. C.) Trade Union College. San Francisco Labor College. In the near future, more colleges will undertake such courses. A syl labus has been prepared by The League to aid teachers in carrying on a Co-operative course. This out line of Co-operation, together with a bibliography prepared by The League, is to be put at the disposal of all the labor colleges in the coun try, through the Workers' Educa tion Bureau. It can also be ob tained! from The Co-operative League for study groups of any kind. CENSUS RETURNS ON CO OPERATION The U. S. Bureau of the Census has issued figures on the extent of co-operative marketing and purchasing by farmers. In the 1920 census, figures were taken of the business done by farmers' co-operatives dur ing the preceding year. These returns show that 329,449 farms secured their farm sup plies, such as fertilizer, feed, twine, coal, and even household necessities through co-operative purchasing associations. Co operative purchases by farmers amounted to $84,615,669 in 1919. These purchases were made by 5.1 per cent of the farmers of this country. The figures for co-operative marketing during 1919 are even more impressive. There were 511,383 farms selling their produce through co-operative marketing associations, or 7.9 per cent of all the farms in this country. They sold $721,983,639 worth of farm produce in 1919, or an aver age of $1,412 for each farm. The Co-operative Consumers' Movement among the farmers is strongest in Kansas, Nebraska, Iowa, Minnesota and California. ANOTHER BOSTON BANK A new credit union has just opened for business in Boston, Mass. Com pare these features of the credit union with the business methods of your bank: One may become a member, by pay ing $5 for a share. This need not all be paid at once. Shares can be paid for, by weekly instalments of as low as 20 cents. Deposits as low as 25 cents are ac cepted. Loans are made to members only, at a reasonable interest rate. Repay ment may be made within one year, in weekly or monthly instalments. All officers and members of com mittees of the credit union serve without pay. They are sworn to the faithful performance of their duties. The credit union is under supervision of the State Banking Commissioner. The treasurer is under bond. Finan cial statements are rendered every month. This credit union is called the Union Workers' Credit Union, and is located at Room 634, Little Building, Boston. For the convenience of the members, the office is open Tuesday evenings from 7.30 to 10 P. M. CUTTING EXPENSES All the way from New Zealand comes a report of the efficient serv ice of the manager of a co-operative society in that far-off country. When this enterprising manager took charge of his store in Decem ber, 1918, the percentage of ex penses on turnover amounted to 13.3 per cent. For the period end ing June, 1919, the expenses were 11.18 per cent; six months later, December, 1919,11.08 per cent; for the year ending June, 1920, down to 10.2 per cent. By the end of the last half year expenses had been cut to 9.5 per cent. This shows two 16 CO-OPEKATION CO-OPEKATION 17 years' overhead cut down 4 per cent, while costs of labor were going up. And the percentages of surplus- savings went up, while the ex penses were going down. NEW RUSSIAN SOVIET HOUSING POLICY A significant bit of news came in a recent dispatch from Kussia. Leon Kamenev, Chairman of the Soviet Department of Moscow, is quoted as follows: "The new municipal policy brings with it a radical change in the housing question. The section for housing only has the right of administration of the so-called fund of available houses. This fund consists of 10 per cent of all housing accommodation which is handed over to the newly-formed housing co-operatives. These co-operatives undertake the maintenance and repair of the houses. There are today about 200 such co-operatives, which also undertake the restoration of destroyed houses or houses which require thorough repair and renovation." BOYCOTT CO-OPERATIVES The other day the "Journal of Patronal Associations" stated that, although the manufacturers of cer tain branches (especially textiles) had lowered their prices 50 to 60 per cent, the retail merchants had not lowered theirs more than 20 per cent. Also the Secretary of the Swiss Industrial Associations for mally accused the retail merchants of having an understanding amongst themselves to resist the lowering of prices demanded by the manufac turers. We have, on our part, on many occasions, cited cases where the Co- operators were threatened with the blacklist by these associations of retail merchants, if they continued to cut prices, which proves the truth of the allegations of the "Schweiz. Arbeitgeberzeitung." In further proof of this the Co-operative Union of LaChaux-de-Fonds has just added a bit of news. Here is a letter which the society has received from the stationery trust: Our members who deal in stationery in La Chaux-de-Fonds complain that the Co operative Union of your city sells mer chandise below the prices (of others) and carries on unfair competition. We are therefore asking if you will con tinue to refuse to sell at the same prices charged by other stationers of your city. If we cannot agree on this we shall be obliged to boycott you in order to help our members. We shall regret to be forced by you to take this measure, but present conditions cannot continue. CO-OPERATIVES CUT THE PRICE OF BREAD The bakers of Glasgow, Scotland, made an announcement a few weeks ago that was welcomed by all the workers of that city. The price of the standard four-pound loaf was to be cut to a shilling. This ac tion on the part of the bakers did not spring solely from the generous feelings of the bread profiteers. It was forced upon them by the United Co-operative Bakery, which announced that it would reduce the price of its bread to one shilling. Previous to this the price of Canadian flour had been cut, so that the bakers could afford to reduce materially the price of bread. But they continued to retain for themselves the benefit of the reduction in the price of flour. Then the co-operative bakery got busy and set the pace. It stated publicly that it saw no reason why bread should not be sold at a reduction of two cents a loaf, and announced that it would cut the price of its bread. The private bakers grudgingly had to follow suit. CO-OPERATIVES LAUNCH FISH ING FLOTILLA In the launching of two stalwart ships, the other day, Edouard Anseele, the vet eran leader of Co-operation in Belgium, realized another of his dreams. Since 1886 he had been raising his voice against the exploitation of the fishermen. Now the co-operatives in Belgium have taken a step which is destined to wipe out the unjust system by which the fishermen were vic timized. Two steam trawlers were purchased from the English Admiralty by the Belgian Co- operators for $35,000 each. They had been at sea only a year, and are substantial. The ships bear the names of two prominent Co- operators: Edmond van Beveren, the foun der of Co-operation in Flanders, and Theo- phile Massart, the father of a great co operative bakery. The inauguration of this new enterprise was celebrated for several days at Ostend, which is to be the harbor of the North Sea co-operative fishing steamers. The capital of this venture was subscribed by Vooruit, the great consumers' society of Ghent, the socialist fishermen of Ostend, trade union organizations, and various co-operative so cieties. CORRESPONDENCE TUCUMCARI BUSY "Have been very busy with our Co-operative store here," writes N. S. Bell, of Tucumcari, New Mexico. "We got into financial difficulties and had to change managers. We have with us for manager now Mr. A. W. Warinner, of Missouri. He is pulling us out of the hole in good shape. We sold about $3,000 worth of new stock and are going uphill again. A great number of members are paying their grocery bills in ad vance and have taken new interest in the movement. "There is nothing can stop the bunch we have here now. They have got the co-op, bug bad. Mr. Warinner is a real live wire. He has done more to put the idea over since he has been here than we could in a whole year. Now that the crisis has passed I will have the time and will gladly get out and see what I can do towards getting subscriptions for the magazine Co-OPEEATlON." (We happen to know that Mr. Bell, who is a locomotiye engineer, loaned the society $1,000 to tide it over.) COMING THEIR WAY As President of the Utica Co-operative Society I have just received an invitation to address the New Century Club, a woman's organization of considerable in fluence in this city. I consider this a fine opportunity to plead for their co-operation. You no doubt agree with me that what ever we can do to interest the women is of inestimable value. I may mention that we have secured the support of the local branch of the Con sumers' League, who last week became a member of the Utica Co-operative Society as such, and one of its most influential mem bers joined us individually, with an initial subscription of $250 in shares. The Utica Trades' Assembly whose sup port we have solicited and who had a committee meet with us to investigate our methods has likewise reported that we de serve the trades union support. OTTO L. ENDEES, President, The Utica Co-operative Society, Utica, N. Y. CONAWAY ALIVE No doubt but that you have given up hearing from us, thinking, perhaps, that we had gone the way of the has-beens or those who have tried and failed. But we have cut out the words "fail," "can't," 'if," "don't have time," "afraid," "too busy," and such. All we know is "go." Therefore, you will please find enclosed a check for membership in The League and for subscription to CO-OPEKATION; also enough to cover cost of printed matter you kindly mailed us. Please send us another supply as soon as you get this letter, as we want to keep the co-operative idea be fore the people and let them understand that we are alive. THOMAS A. FEEGUSON, Conaway Co-operative League, Toppenish, Washington. LITTLE ROCK LAUNDRY "We are still alive and in the field," writes L. W. Lowry, manager of the Cit izens' Co-operative Laundry Co., in Little Bock Ark., "showing a small gain each week in spite of hard times and tough competi tion. The Co-operative flag is nailed to the mast, and the thought of failure never enters our heads. Yet— "We have our careless members and our knockers! 'Tis easy to dispose of the knocker from the outside, we know what to do with this fellow if he won't listen to reason—but the guy that should be a booster, he is a thorn in the flesh. He can not be convinced, he will not listen to reason, he won't even listen. At his union meetings he will repeat some false story, magnify it, and when told that it is not true, he leaves and spreads it broadcast. Against that kind of poison, the writer does not know what to use- "In spite of this, perhaps because of this, we are getting ahead. While other laun dries have laid off employees and cut wages, we have kept all of ours busy, and made a slight gain each week. A CO-OPEEATIVE LAUNDEY CAN BE MADE A SUCCESS —WE HAVE ONE HEEE." EDUCATION AT MAHONINGTOWN We worked for eighteen months to get started—had about $3,300 collected—but we were afraid of the times, lots of articles coming down. We thought we had better wait until times were more settled. Every member received his money back and aU but two are ready to try it again, just as soon as times are more satisfactory. We think in about eight months to a year con ditions will be more settled. We appreciate the fact that The Co-operative League of America has helped us in many ways to III 18 CO-OPERATION get started in the right way. We are not going to give up, but still work for the good we know there is in it for us. Our board of directors is acting as an educational committee. Mahoningtown, Pa. C. M. HILL, HENRYETTA HAS GOOD POLICE The Henryetta District Co-operative So ciety of Henryetta, Okla., was organized during November, 1919. Twelve of us met and put up $10 each to defray expense of legal advice, charter fee, and incorpora tion expense. We were accorded the priv ilege of meeting in the police chief's office during our organization period. We se cured enough stockholders and money to buy out an old stock of goods, though we were sorry later for buying old goods. We launched into' business on February 1, 1920. We had a hard struggle our first year on account of incompetent managers. The second year we have done fairly well under another manager. We have bought and paid for a business lot, and hope to build in the near future. We have built a corrugated iron garage on our lot to house our two auto trucks, which saves us $30 per month rent. We are paying on a contract for a loan of $15,000 in a loan company, which we expect to use in erect ing our own store building. At present we have 224 members. We do about $10,000 business a month. We handle groceries, dry goods, shoes, and a small line of hardware. Goods are sold at current retail prices. We are at present in a very trying time, but we know we will surmount all obstacles. GEORGE McKAY, Treasurer Henryetta District Co-operative Society, Henryetta, Okla. (During the last quarter this society paid a savings-return of 6 per cent to all its members on their purchases). HANNIBAL EDUCATES We think the Associated Magazine to be a great scheme to educate members and can be used very effectively by mailing a few copies to active trade unionists and others inclined to be open on this subject. Experience teaches us that nothing is so essential to the success of a co-operative store as is education. Send us 500 copies at your earliest convenience. A. S. BREWER, Manager Hannibal Co-operative Society. CALENDARS FOR 1922 A very attractive calendar has been issued by the Co-operative Central Ex change of Superior, Wisconsin, for the year 1922. The calendar has a striking reproduction of a four-colored oil painting made especially for this purpose. The pic ture teaches a Co-operative lesson, and makes the calendar suitable for advertising and educational purposes. Last year the Co-operative Central Ex change supplied 25,000 calendars to local societies. It intends to do even better this time. A substantial reduction has been made in the price of the calendars, which sell for 14 cents each in lots of 1000 or more, 15 cents each in lots of 500 and less than 1000, and 16 cents each in lots less than 500. Many societies are ordering cal endars for their members and customers. BOOK REVIEW Co-operative Anthology. Theoretical and Practical Guide to Consumers, Producers and Agricultural Credit Co-operatives, by V. Th. Totomiantz, former professor of the University of Moscow. Published 1921 by J. Povolozky & Co., 13 Rue Bonaparte, Paris, France. Professor Totomiantz has rendered a val uable service in compiling this anthology. It is a collection of the opinions, philoso phies and principles of various prominent European Co-operators. Most of the ex tracts are brief and give a fitting view of the thoughts of the authors. We find col lected here quotations from the pioneer advocates of the Co-operative Movement, such as Holyoake, Owen, Maxwell and H. Wolff, of England; Schultze-Delitzch, F. Studinger, H. Mueller and H. Kauffman, of Germany; Charles Gide, Fourier, Pois- son and Daudet-Bancel, of France; L. Luz- zatti, Mazzini and L. Barbieri, of Italy; and H. Pronier, of Switzerland, etc. We in the United States will regret not only that this valuable anthology is pub lished only in the French language, but that its author has not included in it ex tracts from the American writers on the Co-operative Move_ment. Nevertheless, we may look forward in the future revised edi tion for the inclusion of extracts from those who are helping to guide the Co-operative Movement in this country, as well as for an English translation of the stimulating hopes and ideals of our Euro pean fellow Co-operators. CO-OPERATION, VOL. VII, 1921 Bound volumes of this magazine, with index, for 1921, may now be had by writing to The League. Our readers may be interested to know that the volumes of the recent past years are nearly exhausted. This publication is an historic record which is now preserved by libraries and by individuals as the most authentic record of co-operative progress in the United States. CO-OPERATION 19 PUBLICATIONS OF THE Co-operative League of America HISTORICAL Per Copy Per 10Q 3. Story of Co-operation .................................................$ .10 $6.00 7. British Co-operative Movement ........................................ .10 6.00 10. A Baker and What He Baked (Belgian Movement)...................... .05 38. Co-operative Consumers' Movement in the United States............... .05 4.00 TECHNICAL 4. How to Start and Run a Rochdale Co-operative Society.................. .10 4.00 5. System of Store Records and Accounts................................ .50 6. A Model Constitution and By-Laws for a Co-operative Society........... .05 2.60 8. Co-operative Education. Duties of Educational Committee Defined..... .10 9. How to Start a Co-operative Wholesale................................ .10 27. Why Co-operative Stores Fail .............. .......................... .02 1.00 MISCELLANEOUS 46. Producers' Co-operative Industries ................................... .10 11. Control of Industry by the People Through the Co-operative Movement... .10 12. Credit Union and Co-operative Store.................................. .05 1.76 34. Co-operative Movement (Yiddish) .................................... .02 1.25 43. Co-operative Housing ................................................. .10 45. Harmonizing Co-operative Producers and Consumers.................... .03 ONE-PAGE LEAFLETS (One cent each; 60 cents per 100; $2.50 per 600; $4 per 1,000) (1) Principles and Aims of the Co-operative League of America; (17) Do You Know Why You Should Be a Co-operator; (20) Why Loyalty Is Necessary; (21) Cost and Crime of Credit; (22) A Real Co-operator; (26) Resolutions Adopted by A. F. of L.; (26) Factory Workers, Co-operate!; (28) Do You Know About Co-operation in Europe?; (40) Have You a Committee on Education and Recreation?; (44) What Is the Co-operative Movement ? MONTHLY PUBLICATIONS CO-OPERATION—(In bundle lots, $7.60 per hundred). Subscription, per year......... .$1.00 HOME CO-OPERATOR, 4 pages ................................................ $1 per 100 INTERNATIONAL CO-OPERATIVE BULLETIN (Pub. by The I. C. A.).......per year, $1.50 BOOKS The following books are recommended as containing the best discussions of the modern Co-operative Movement. They made be ordered through The League: Bubnoff, J. B.: The Co-operative Movement in Russia, 1917.......................... .$1.26 Faber, Harald: Co-operation in Danish Agriculture, 1918.............................. 2.75 Flanagan, J. A.: Wholesale Co-operation in Scotland, 1920............................ 2.00 Gebhard, Hannes: Co-operation in Finland, 1916............................... ...... 2.00 Gide, C.: Consumers' Co-operative Societies, 1921...................................... 2.50 Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, $2.00; paper bound ........................................................................... .60 History of Co-operation in the United States. Vol VI, John Hopkins University Studies, 1888 ...............................................................................4.00 Holyoake, George Jacob: The History of Co-operation, 1908............................ 2.00 Holyoake, George Jacob: The History of the Rochdale Pioneers........................ 2.00 Howe, Fred C.: Denmark, a Co-operative Commonwealth, 1921.......................... 2.60 Maxwell, Wm.: History of Co-operation in Scotland, 1910.............................. 2.00 Nicholson, Isa: Our Story ............................................................ .26 Powell, G. Harold: Co-operation in Agriculture. Macmillan ........................... 1.60 Redfern, Percy: The Story of the C. W. S............................................. 2.00 Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918....................... 2.60 Smith-Gordon: Co-operation in Many Lands, 1920...................................... 2.60 Sonnichsen, Albert: Consumers' Co-operation, 1919. Cloth bound, $1.76; paper bound... .76 Stolinsky, A.: The Co-operative Movement. In Yiddish................................ 1.00 Webb, B. and S.: The Consumers' Co-operative Movement, 1921....................... 2.00 Webb, Catherine: Industrial Co-operation, 1917 ...................................... 1.60 Woolf, Leonard: Co-operation and the Future of Industry............................. 2.00 Woolf, L.: Socialism and Co-operation................................................ 2.00 "The Co-operative Consumer" and "Co-operation," Vols. I (1914-16), II (1916), III (1917), IV (1918), V (1919), VI (1920), VII (1921)........................................ 1.25 Transactions of Second American Co-operative Convention, 1920....................... 1.00 (Ten cents postage should be added for books which cost more than $2.00, and five cents for the smaller books.) THE CO-OPERATIVE LEAGUE OF AMERICA (Member of The International Co-operative Allinace) Executive Office: 2 West 13th Street, New York An educational organization for teaching the history, principles, methods and aims of the Co-operative Movement and for the promotion of Co-operation in the United States. Join the League and thus help promote the education work of the Co-opera tive Movement. Individual Membership, 1.00 a year. Subscribe for CO-OPERATION Formerly the ''Co-operative Consumer." The Monthly Magazine of The Keep in touch with the Movement, $1.00 a year. This Journal is Not Published for Profit Ce-operative Central Exchange Wholesale Grocers and Jobbers, Bakers We supply goods to Co-operative Societies ONLY We are owned and controlled by Co-operative Societies. We are organized to enable Co-operative Societies to do collectively what they cannot do indi vidually. Co-operative Central Exchange Offices, Warehouses and Plant: Winter Street and Ogden Ave., SUPERIOR, WIS. Co-operators' Ltd. Mutual lire Insurance Co. Is now writing insurance in State of Wisconsin. The Canadian Co-operator Brantford, Ontario, Canada The organ of the Canadian Co-opera tive Movement* owned by and con ducted under the auspices of The Co-operative Union of Canada. Published monthly; 75c per annum MOVING PICTURES and Stereopticon Lectures may foe rented from CO-OPEBATTVE LEAGUE OF AMERICA » West 13th St., New York City 1. "Some Examples of English Co-operation." Moving pictures of factory processes (two reels) ................................SB.OO 8. "Coperation in the United States." With 63 stereopticon views ........... .$3.00 'The Co-operative Momevent in Russia." With 36 colored stereopticon views. .. .$3.00 3. Co-operation in Scotland In no part of the world is Co-operaiion further developed, or more successfully practised than in Scotland. If you wish to keep in touch, read "The Scottish Co-operator" (Published Weekly) Subscription: Year 12 sh.; half-year. 6 sh. Address, 119 Paisely Road, Glasgow, Scotland THE PRODUCER Issued Monthly Price 3d. If you want to keep in touch with business, organization, administra tive affairs, and problems of the British Co-operative Movement, read THE PRODUCER. Published by Co-operative Wholesale Society, Inc. 1 Balloon Street, Manchester. Post free 4 sh. 6d. a year. The Trade and Technical Orean of British Co-operation. CASH REGISTER FOR SALE The Consumers' Co-operative Company, of Dayton, Ohio, has a cash register which it wishes to sell. The register was bought for $750 only one year ago, and is now for sale for $500, which we are assured is a bargain price. The register was especially built for use by co-operative societies. It prints a record of each transaction in dupli cate, so that the store and the customers may figure up the amount of purchases upon which dividends are to be paid. Com munications should be addressed to M. E. Dooley, Treasurer, 21 South Terry Street. Dayton, Ohio. I I 11 .-•£" I A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in vol untary organization, produce and distribute for their own use the things they need Published monthly by the Co-operative League of America, 2 West 13th Street, New York City. J. P. Warbasse, Editor. Price, $1.00 a year. Entered as second class matter, December 19, 1917, at the Post office at New York, N. Y., under the Act of March 3, 1879. Vol. VIII, No. 2 FEBRUARY, 1922 10 Cents VITAL ISSUES THE FARMERS The time was when the United States was an agricultural country. Most of the farmers worked on their own farms. The ambition of the fa ther was to leave a farm to each of his children. The culture, the sta bility and the wealth of the country were among the farmers. Up to sev enty-five and fifty years ago, the United States was breeding a race of sturdy farming people. The farmers lived well, did their own thinking and fostered a fine spirit of friendliness and neighborly sympathy. Each fam ily produced in those days most of the things they consumed. Their indus try had a large social motive. The agricultural period held the best days in the history of the United States from the standpoint of the making of men. Then came the steady encroach ments of trade, manufacturing and intensive industry for profits. A new race of people became dominant—a race of traders, speculators, and pro ducers for profit. Gradually it came about that money could be made easier in exchanging and gambling in the products of the land than in actu ally producing things. Laws were made to promote and protect gam bling-. (It was called "trade" or "business.") The products of the farms presently became objects of in terest and importance because of their gambling possibilities. The most influential citizens ceased to be of the farmers and became the cham bers of commerce, produce exchanges, stock exchanges, merchants associa tions, and boards of trade. Buying at the lowest price and selling at the highest price became the great na tional occupation. Steadily now, for the past thirty years the number of farmers who work on their own farm has dimin ished. The number of mortgaged farms has increased. The number of farms owned by absentee landlords and worked by tenant farmers has multiplied. The average farm worker has made a bare living from his in dustry. Out of sheer economic pres sure, the boys and girls have left the farms and gone to the cities to take jobs in factories and to engage in the game of selling their labor at the highest price and buying at the low est price. The year 1921 saw a great change in the United States. For the first time in its history, the town popula tion became greater than the coun try population. The majority of the people are no longer occupied in agri culture. The United States has ceased to be an agricultural country. How fares it with the farmer now? In the Fall of 1921, a hearing be- 20 CO-OPERATION fore the Agricultural Commission in Washington brought out the fact that the farmer in this country receives but thirty cents out of every dollar that the consumers pay for farm pro ducts. In Denmark, the farmer re ceives ninety cents of the consumers' dollar. The greatest economic power in the United States today is represented in those forces that take this seventy cents tribute out of every consumers' dollar and hand the farmer thirty cents. This force is organized; it controls the press and the schools, and its representatives and agents constitute the great majority in every state legislature, in congress, in the cabinet and in the courts. This is a serious problem; but it is not only a farmers problem; it is the problem of every one of us. No civilization can endure that subjugates the pro ducers of necessary things to the will and Gemination of traders in those things. To meet this situation, there is one first step. The farmer must organ ize. Industrial labor lifted itself out of a state worse than slavery by or ganizing. The farmer is headed, for peonage; and nothing but organiza tion can save him. His first duty is to organize as a producer—as a worker—to get adequate pay for his labor. That means adequate prices for what he produces. The consum ers who are not farmers can not justly raise a voice against this. The farmer must organize for the same reason that the industrial worker must organize. In the present eco nomic system, without organization, slavery is their destiny. The man who is opposed to the trade-union principle for every worker, indus trial or agricultural, is an enemy of civilization to just that degree. But the farmer, as well as the in dustrial worker, cannot solve his problem by merely organizing and se curing better reward for his labor. When he comes to spend the wages he has gotten for his toil, he is still at the mercy of the same forces that control his selling power. Inasmuch as he spends as much as he receives, he is a consumer as much as he is a producer. It is for this reason that he must organize his spending power as well as his selling power. These two forms of organization are neces sary and should go hand-in-hand. The organizations that are doing the most for the farmers in the United States are those that are giv ing attention to both ends of the farmers' problem. Several are sin cerely interested in having the farm ers organize as consumers. Their stores and purchasing organizations are beacons of hope. They have es tablished some of the best consumers' societies in the Middle West. Their great need is the intensive promotion of education so that the farmers shall understand the need and the correct methods of organization. The Co-operative League desires to render every possible assistance in this direction. There is every reason why the organization of the people as producers and as consumers should go forward together. The hope of the United States rests upon the pro gress of the Co-operative ,Movement and not upon the fictitious wealth, the product of exploitation, which high finance holds up as the test of our greatness. A BUYERS' STRIKE The Attorney General of the United States has suggested, as a remedy for profiteering and high prices, that the buyers should boycott all shops where they think prices are unreasonably high. There is one thing that strikes the thoughtful citizen in these trying times: that is the utter poverty of politicians in constructive ideas. The whole country is beset with profiteer ing, unemployment, suffering and crime rampant. Boards of aldermen and city councils fail utterly to touch the problem. One American city has been advertised with screaming head lines as having a solution for its crime problem; and what do we find is its CO-OPERATION 21 solution? It is building two new criminal court buildings and has in creased its criminal prosecuting staff! If one would be especially im pressed with the utter futility of our political system, let him go to Wash ington and see the whole outfit of politicians, busy chieflly in avoiding doing something fundamentally use ful. Dear reader, did you ever walk the fields and turn over a big flat stone and see the commotion among the bugs underneath? Such a scurrying and rushing hither and hither! Do you realize what all the excitement and fuss is about? The bugs are afraid of the light. They live and work in darkness. That is Washing ton. The big flat stone is the present benighted economic profit-system. A new idea, born of suffering and dis content, comes along and tips it up a bit. A little light creeps in around the edges, and there is danger that the thing may upset. The bugs scur ry as far from the light as possible, loudly proclaiming to each other the virtues of the stone and asserting that the light cannot get in very far and disturb things. The solution offered by the Govern ment will not upset the stone—never fear! It proposes a nation-wide buyers' strike! If the workers proposed a nation-wide strike of workers because wages were too low, hell would be to pay. But high prices is exactly the same thing as low wages. The pre cious Attorney General knows that the buyers are not organized and there is no such a thing as an unor ganized strike. A strike is a nega tive force any way. The Attorney General advocates a consumers' strike not only because of dearth of ideas, but because of its impracticability. The government's job is to suggest something that will not worry the supporters of the present system or upset the structure under which they work. Suppose we had a government of constructive statesmen. I admit the impracticability of the supposition. But suppose we had. And suppose the government taught the people about organizing the consumers, not to strike, but for constructive pur poses. Suppose it used its machinery of education, propaganda and pub licity, not for negative purposes, but to teach them how to organize co operatively as consumers to supply themselves with the things they want. Suppose it fostered laws for the protection and the promotion of such organizations of the people. Sup pose the Government should do what The Co-operative Leage is attempting to do. The United States would be converted into a Utopia. The possi bilities of bringing happines, self-re liance and justice to the people are so great as to be beyond human calcula tion. Privilege and poverty would disappear along with the train of crime and sin that follows them. That the Government will do such a thing is unthinkable! If the people want privilege and poverty abolished they will have to do it for themselves. Not a buyers' strike, but a buyers' co operative organization for construc tive purposes is what this country of ours needs. A SOCIALIST ERROR Socialists in the United States are teaching that the people need to vote for Socialism and secure a majority at election; and, lo! and behold! in the twinkling of an eye, all will be changed! The New York Call, January 5, 1922, in an editorial said: "H. G. Wells is right. It is not war that is the most terrible thing, horrible as it is. It is the stupidity of the people who, having it within their power to change the present hellish conditions between the rising and setting of the sun, refuse to do it." The editor who wrote this is the best informed on economics of any editor of any New York daily news paper. He did not mean just what the editorial reads. He meant that the people have the power, in a day, to take the first step toward a change. But many people take the statement 22 CO-OPERATION literally. The teaching among so cialists is very prevalent that when they have a majority at the polls the change is as good as accomplished. Soap box orators are fond of giving this impression. As a matter of fact it is far from the truth. If in any industrial country, the socialists should win a victory at the polls and should attempt to change the present hellish conditions between the rising and setting sun, by a socialization of industry, that country would be thrown into a state of hellishness that would be worse than the present con ditions. If the captured government should proceed to take over the indus tries, chaos would be turned loose. There would be unemployment, sup pression of civil liberties, suppression of freedom of speech, force without stint, wholesale arrests, bloodshed, poverty and crime—all multiplied be yond what they are today. Before the upset had lasted long the majority of people would be praying for the good old times back again, some arch reactionary would be elected presi dent, the "radicals" would be stood in rows in front of a wall, and mowed down with machine guns, and the same old game would be on again. If there is any particular class of people in the United States today who are not radical it is the people who call themselves "real radicals"—the so-called extreme left wingers. Radi cals are at the root; these left wingers are up in the branches—and a good thunderstorm would shake them out and bring them tumbling to the ground. What the people want is bread and potatoes, and plenty of them. Any reorganization of society—that does not at once give them at least as much as they have been having—poor as it is—will not last very long. The prom ise that "we are working put a better state of society for our children" does not satisfy hungry people. No change from the present system will succeed unless it is an economic change. Poli tics can change little. The politics, the government, is but the echo of the voice of the owners of the prop erty. Sudden revolutions, both poli tical and economic, fail because the present owners of the property are opposed to sudden change. And they are the forces which hold the surplus wealth, the surplus food, the guns and the powers of coersion. Finland came up against this thing. It elected 103 socialists in a parliament of 200. Then the trouble began. It is not a question of what is right or what is wrong; it is a question of facts, a question of the action of forces which cannot be changed overnight. I do not say politics is futile. But I do say it is a secondary field; and any movement that hopes to change the present "hellish system" by politi cal action alone is futile. It is an idle dream. The only way to make the world a better place to live in is to go to work day by day and make it a better place to live in. That means work; and there are a lot of people who want it done without work. They think vot ing is easier. If production and distribution for profit is a source of evil, then the remedy is to distribute and produce things for use. If people do not want to be dependent upon profit-making capitalists for the necessities of life, then the thing to do is to learn how to supply themselves with the things they want, independently of the cap italists. There is no easy way to do this. It can not be done by electing some other fellow—to go to a capital city—to instruct the thing called the government—to do it. The people must do it themselves. The capital ists are now supplying us with most of the things we use. They have learned how to do it. But if we want a change we have got to train our selves to do things ourselves. If we are not willing to remake the world ourselves with our own hands, per sistently and constructively, then other non-creative and destructive forces will remake it; and for the worse. J. P. W. CO-OPERATION 23 EUROPEAN IMPRESSIONS CO-OPERATION IN SWITZERLAND By J. P. WARBASSE There is a story told of a wealthy traveller whose life was saved by some Swiss peasants in the moun tains and who, out of gratitude, sent a sum of money to the Swiss Govern ment to be given to the poor. In due time he received a letter of thanks from the "little republic of the moun tains" ; but the letter returned to him his money and informed him that the government could not use it as there were no poor in Switzerland. I like this story because it shows the self- respect and independence of the peo ple. Of course there are poor people in Switzerland — every country that has the conspicuously rich has the poor—but they are few; they will not accept alms—and the Government knows it. As governments go, the Swiss have a very decent one. Switzerland owns no colonies, has no imperialistic pol icy, supports no navy and accordingly can maintain a pretty high type of political regime—at least a vastly higher type than any government can which possesses these incumbrances. The Swiss Government is one of the few governments that is not un friendly to Co-operation. Its attitude is nothing worse than that of cheer ful neutrality. The Swiss press dares not attack Co-operation. The pulpit utters no word against it. The schools teach Co-operation. And the universities have chairs devoted to its propagation. All of this comes about not because Co-operation is a good thing, but because one half of the population of Switzerland are in the Co-operative Movement, and because the state, the press, the pulpit and the schools are not leaders of the public but only reflections of the public will and intelligence. I spent two happy weeks in Basel. Here is the central office of the Union of Swiss Co-operative Consumers' So cieties (Verband Schweiz. Konsum- vereine—V. S. K.), Several of the factories of the wholesale are located here. Among these, none is more noteworthy than the shoe factory. This splendid plant kept running dur ing the war and has never laid off a hand during the slack times that fol lowed. When capitalistic shoe fac tories in Switzerland were closed or were working half time or had laid off half of their employees, this factory continued to produce shoes at its full capacity. I said to the manager, "What do the consumers' societies say to this production of shoes beyond their needs? You are making more shoes than they can buy." He re plied, "This is not a profit-making business; it is a social enterprise. We can afford to do so as long as the fi nances of the whole society do not suffer." The consumers who own this factory are willing to produce shoes and store them in their warehouses in order that the employees shall not be dismissed. Capitalistic business is not prone to do this sort of thing. One of the possessions of the Swiss Union is the ownership of the major ity of the stock of Bell & Company, the beef trust of Switzerland. This illustrates the co-operative method of socialization. It is done neither by confiscation nor by compulsory sale, but by the simple and ordinary method of business in the free and open competitive world of economics. The result is that the Co-operators of Switzerland now control the meat monopoly, and have the benefit of the experience and administrative ability which that great trust had developed. This they are able to do and at the same time have the benefit of 49 per cent of capitalist capital in the busi ness. So close is the connection that the Co-operators have built one of their own wholesale warehouses im mediately opposite the packing house premises. The Swiss Union acquired the larg est flour mill in the country by the 24 CO-OPERATION same means as it acquired the meat packing business. The millers had been required to boycott the co-opera tive bakeries because they sold bread cheaper than the private bakeries. The Co-operators solved the problem by buying the big mill in Zurich. The beautiful holiday house in the Rigi Mountains is the Co-operators' vacation and recreation resort. Co-operative housing, insurance and banking are also well advanced in Switzerland. The educational printing and the publications issued by the Union are the best examples of educational co-operative press work in Europe. Their printing plant is a model. Switzeiiand has 374 co-operative electric societies which produce elec tricity for the members. Many of these get their power from the moun tain streams and use this falling wa ter from the melting snow to light their houses and run their sewing ma chines. Let us look at the local co-operative society of Basel. This city has 135,- 000 population. The society (Der Allgemeine Consumverein—A. C. V.) has 41,000 members. Its yearly busi ness is 60,000,000 francs. There are more members than there are fam ilies in the city. The society has a bakery with 18 ovens, turning out 10,000 loaves of bread daily and many other products. Sixteen wagons de liver the bread to the stores. There are 160 stores, one of which is the largest retail department store in the city. The creamery distributes 60,- 000 liters of milk daily. It supplies more than half of the families in Basel with milk and is one of the largest and finest industrial buildings in the city. Milk is received from the farm lands of the society just out side of the city and also from dairy productive societies. This plant handles butter and cheese and manu factures fermented milk products. With its laboratory, refrigerating ma chinery and modern apparatus, it is a standing confirmation of the prin ciple that the people can carry on their own business better than private interests can carry it on for them. The plant looks like a university building. The shoe repairing shop of the Basel society employs thirty shoe makers and repairs 1200 pairs of shoes a week. This society has a building department and at present owns 300 dwellings. Independent of the A. C. V. are several co-operative building societies developing homes for the people. The most important of these is Freidorf, with 180 houses. The money for this latter enterprise was largely supplied by the Swiss Union. The Freidorf society is now erecting a central building which will contain stores, an assembly hall, a gymnasium, restaurant, school and library. The Basel society has also a large savings banking department. Its bottling department is the largest wine business in the city. Its own fire department is so efficient that the reduction of fire insurance prem iums nearly pays for its maintenance. Among the other activities of this so ciety are a coffee-roastery; petroleum, coal and wood business; beer, mineral water and soft drinks bottling; repair shops; blacksmithing and painting. This Basel society is the largest, the most influential and the most beneficent organization in the city. Basel is a beautiful and enlightened community; the co-operative society is doing more than any other agency to make it more beautiful and more enlightened. I doubt if there are any large societies in the world whose members in proportion have a better understanding of Co-operation than is to be found in Basel. One can traverse the length of Switzerland in a few hours. In every town is a good society. Let me say a word about the Zurich society. It is much like that of Basel. Its cen tral building is the largest and finest commercial building in the city. The building occupies a city block. The retail grocery store on the ground floor is the most beautiful grocery store I have ever seen. I am familiar with the high-toned grocery stores in CO-OPERATION 25 New York and other American cities. None of these compare with the co operative store in the little city of Zurich. The interior is of rich golden brown glazed porcelain tile. Not only are the side walls of this material but the columns and railings of the staircase. Porcelain electric chande liers, fountains and other ornaments make this interior seem like a palace hall. The meat and fish department, with aquariums of living fish, pre sents more the appearance of a na tural history museum than a com mercial business. The two sub-cel lars with artificial refrigeration, are packed with perishable foods direct from the land. As one steps from the elevator at the top floor, his vision, through the window, is arrested by a great snow-capped mountain which comes down to the very edge of this beautiful city and adds its charm to an idyllic scene. Switzerland is making a contribu tion toward the solution of the social- economic question which the Co-oper ators of all the world may study with profit. The Swiss Co-operators are leading the people of that little re public toward civilization. It was in deed fitting that the Tenth Interna tional Co-operative Congress was held in that land of co-operative promise and fulfillment for every delegate car ried back to his own country inspira tion and ideals which northern Switz erland best could supply. THE BUYING CLUB FOR "MIDDLE-CLASS" CO-OPERATORS By CEDRIC LONG How can a successful co-operative society be organized among middle- class residents of a city or town—men and women in business or professional life? One answer is, "It can't be done. Why try?" But that is dodging the question. These people are consumers. And every week many of them are chal lenging the office of The Co-operative League to show them the way to or ganize a consumers' society. Here is how one group attempts it: 1. The leaders recognize the limi tations of the majority of the people. These people are not united by a class- consciousness such as the organized workers or farmers have. They have no common interest. Most of them are sheer bargain hunters and have no inkling of the meaning of co-opera tive solidarity. 2. Confessing these limitations, the leaders have determined to unite such people on a straight promise to get them bargains. 3. Share capital necessary is $25 per member, payable in instalments; interest on capital is limited. One member has one vote only. No proxy voting permitted. The society handles drygoods, stationery, furniture, gro ceries in large quantities,—all the common necessities of the home. 4. Goods are sold at cost plus 20 per cent; 10 per cent of this surplus goes to expenses of operation; the remaining 10 per cent is returned at the first of every month in the form of savings returns. 5. There is no store. A manager and clerk are employed. They have their headquarters in a large office building, displaying a few samples and wholesale catalogues. Members place orders in advance and goods are delivered to homes at wholesale cost plus 20 per cent, plus delivery ex pense. The president of the society justi fies this form of co-operative buy ing organization on the following grounds: A. We don't want a store. If we attempt to run a store, we are doing just what private business does, and we can not com pete. Why do what everybody else is doing and lose money? We owe our members something better. B. To compete with commercial stores we must offer our bargain-hunting members 26 CO-OPERATION lower prices and a rebate. Therefore we undercut the department store prices on nearly everything, and in addition we guar antee a monthly dividend of 10 per cent. C. We not only save the overhead expense of running a store, but we eliminate the expenses of depreciation on a whole lot of damageable goods. Our member who wants a new phonograph or suit of clothes, goes and overhauls the goods that are being knocked around the department stores by a thousand people, decides what he wants, comes to us, and we get it for him in brand new, perfect condition from the wholesaler. Wanamaker, Gimbel, or Marshal Field is our sample room where our people paw over shop-worn material until they find the goods that they want their own Co-opera tive to buy for them. D. We do not meet the requirements of the hand-to-mouth purchaser who never knows what he wants until he needs it. And we don't want to. Let the chain stores do it. We are teaching men and women to plan their purchases a few days ahead of their needs. And we are demonstrating to them that it pays to look ahead. E. As for Ideals and Principles.—Our members are not yet Co-operators and we don't try to fool ourselves into believing that they are. But ultimately they are to become a part of the Co-operative Com monwealth of the future. How get them ready for that time? We mus_t first ap peal to their selfish individualistic inter ests and get them to buy through the same society. Gradually the monthly dividend and the quarterly meeting and the visiting committee will begin to have an effect on them. They will realize that it is their society, run by their collective effort, giving them common advantages. They will begin to see the difference between such an or ganization and the ordinary profit-making institution. They will look around for other Co-operators. They will learn that they have something in common with the work ers co-operative societies. Is this an ideal co-operative ? Is it practical as a business proposition? Is it contributing to the building of a new social order founded on co-opera tive principles, or is it only cheapen ing the cost of living for a group of middle-class men and women, and thereby perpetuating the profit-mak ing system? Can our middle-class men and wo men learn to become Co-operators? And if so, with what form of organi zation is it best for them to begin? IT PAYS TO STICK By WILLIAM ROSE of Trenton, Michigan [This communication is from a pioneer British Co-operator, now, for many years, a citizen of the United States. It should be of interest to all Co-operators in this young land of co-operative effort. Recently delegates from the League visited the Royal Arsenal Society, at Woolwich, Lon don, England, which is described by Mr. Rose, who was one of its originators and its first secretary, in 1850. Today this so ciety has 70,000 members, a capital of $5,000,000, an annual turnover of $10,- 000,000. It has 134 branch stores, and operates its own tea warehouse, its own preserve factory, bakery, drygoods, house furnishings, fish and green grocery depots, and butcher shops; and employs 1,700 per sons. All this has grown from the early beginnings which Mr. Rose, who is now a great grandfather, so picturesquely de scribes.] I will give the early experience of the Royal Arsenal Co-op; but first of all I will tell of the condition of Co operation in that district, the factory end of Woolwich. When I was an in fant, a Co-op, was started by some boiler makers. It ran for 30 years, but never got out of a two story house. It was run on the old style; those that had the most stock had the most to say for the management. Then there was the Woolwich bread society. My father before me helped to start that on the same principle. These two, to my own personal knowl edge, wound up, paying in only a few shillings on the pound. Then there was another in the Plumstead dis trict that started and only lasted a year. That was the field that I had to break into, but I was an enthus iast and I wanted to do something to leave the world better than I found it, and after studying with it on my brain for about three months, piling up statistics, and having only a slim education, but some courage, I finally carried along until I brought the subject up before a mechanics' CO-OPERATION 27 union. About 25 of us met to organ ize a co-operative society: 18 agreed to take one pound shares. After de clining the chairmanship, I did not wish any office, as being its promoter, I had to take the first secretary's of fice. Three pounds was subscribed the first night, and a committee of five elected. The committee met at my home to formulate a system of work ing and to propose rules of manage ment. We wanted the best, so I wrote to Rochdale for a copy of their rules. I never got an answer, as their first secretary, I think his name was Cow- per, was on his deathbed, but Mr. McLeoud, our chairman, wrote to the manager of the Civil Service Co-op, then running in London. He told us they started with four members and advised us to begin without any rules; to make them as we saw the neces sity for same. We took their advice with honest determination. The sec ond meeting of the directors was in my home, 11 Elinor Road, Woolwich. We made two rules: first that our capital should start with one pound per member, to raise it as we went along in installments. I next pro posed the rule which proved the sheet anchor of our society; that no man should have more than one vote, no matter how many shares he should hold. At the time we started we knew nothing of the Rochdale rules. The next thing was when and where to start. To rent a store was out of the question. McLeoud said as soon as we could buy a few things we should start. I said they could have my spare room. After looking it over that was agreed—and in three weeks I collected eight pounds, and with a committee bought a chest of tea of 90 pounds, 100 pounds of sugar and two crocks of butter. With those three articles we started what has proved to be one of the strongest Co ops in the British Isles. We had no overhead expenses. I charged noth ing for the room. It was only open two hours—from eight to ten of a Saturday evening. Two of the com mittee attended to the sales, in turn. Understand, it was on a cash basis. What we took in the first week, with a few more dollars on shares, enabled us to add a whole side of sugar cured bacon, 200 Ibs. more of sugar, 25 pounds of coffee, 3 crocks of butter and quite a number of spices. And so it kept accumulating until, at the end of three months, the little room was so full we had to get out. The only expense had been for scoops for sugar and tea, and scales. Our mem bership had risen to 30. We had added drygoods for sale on a Wed nesday. The grocery goods had to be moved and the counter prepared for drygoods, and then moved back again for the groceries Saturday night. Now for all this time and for two years no wages were paid. The last year we paid for the rent of half of a house. The Co-op went slow for three years, but the directors had grit. At this time a little trouble started that was a test for the principle of one vote for each member. I will state that on my visit to the office of the Wholesale in London, Mr. McGinnis, in commenting upon our start to the rest of the staff whacked me on the shoulder and said, "If it had not been for that little clause you put into the first rule of one man, one vote, the Royal Arsenal would have collapsed." In the fourth year there were 77 members. The next year it jumped to 232. It rose to 1234 and has kept climbing until now it has passed the hundred thousand mark, has over 60 branch stores, 3 big buildings, and also owns 1100 dwelling houses with enough room on the estate for 5000 more, and owns also a pretty country place, Shorenells, where our mem bers can go for their vacation. Well I think I have given you enough experience of how we started. I am now too far advanced in years to puzzle my brain any further, but I am glad to know that I have done one thing that is a success and a bene fit to my fellow-men.' 28 CO-OPEKATION CO-OPEKATION 29 PRACTICAL WORK OF THE LEAGUE REPORT OF THE ACTIVITIES OF THE CO-OPERATIVE LEAGUE FOR 1921 During the past year The League: 1—Sent out, in response to re quests, 131,732 pieces of literature and 1500 books. 2—Published two monthly maga zines, averaging 12,000 copies per month. 3—Issued a monthly practical bul letin to affiliating societies, and sent out a news service to 129 papers of the labor press. 4—Received and answered 3500 let ters asking for advice and informa tion ; and sent out 10,300 circular let ters on routine work of the Co-opera tive Movement. 5—Conducted two courses in Co operation over a period of three months; embracing Store Manage ment, Accounting, and Educational subjects. 6—Published a syllabus for the study of Co-operation in schools, col leges and study groups. 7—Sent speakers to 162 meetings in 35 states from coast to coast. 8—Sent two delegates to the Inter national Co-operative Congress in Switzerland, who visited over 200 co operative institutions in 10 countries, addressed audiences in Denmark, Ger many, Czecho-slovakia and Switzer land, and lectured at the International Summer School at Basel. 9—Interviewed 500 visitors in the offices of The League from the U. S. and 12 foreign countries. 10—Circulated illustrated lectures and moving picture films on Co-opera tion. 11—Wrote 50 special articles for magazines and newspapers. 12—Organized Women's Guilds, and sent suggestions for socials, en tertainments and members' meetings to 400 societies. 13—Gave legal advice on incorpora tion, charters, taxation, litigations, etc. 14—Drafted a model co-operative law for introduction in all states. 15—Investigated and lodged formal complaints with State authorities against fake co-operatives, and warned societies of fraudulent and unsound enterprises. 16—Published advice and warnings on the falling market, overbuying, in come tax, and other practical business policies. 17—Gave written advice on prob lems of store management, sent out technical advisers, and supplied .ac countants and managers where they were needed. 18—Established one District Ad viser in Kansas, and New Mexico. 19—Revised and brought up to date "The Story of Co-operation," "The British Co-operative Movement" and other leaflets on Co-operation. 20—Through news clipping agen cies and papers coming into the office from all the states, The League has been able to keep a card catalogued record of the co-operative enterprises starting and failing. It sends out let ters and literature to all these so cieties, offering advice and help. "HOME CO-OPERATOR" LAUNCHED One of the most interesting things to be observed by the co-operative travelers in Europe is the preva lence of popular little monthly maga zines circulated among the members of the co-operative societies. In every country where Co-operation is booming, these little home magazines are found. They are simple in style, and usually contained a good, snappy editorial on some phase of Co operation, and news of the Movement. It was found that these little home magazines were one of the most effec tive means of keeping the interest of the members at white heat. "Why cannot the Co-operatives in this country use this powerful and simple educational medium ?" was the thought that came to our minds. Ac cordingly, we have launched a new magazine—the "Home Co-operator." It is a four-page monthly paper which keeps the individual members of local societies in close touch with the big events in the Movement, and edu cates them constantly in the co-opera tive idea. It pushes the co-operative idea in such a way that the people will read it. To place a copy of this magazine in the hands of each and every member of a society will cost you only twelve cents a year. If a society has three hundred members, it will cost ?3 a month to keep them interested and in formed about the Movement. Is it a good investment? The condition of the Movement in Germany, France, Switzerland and other countries, where this educational work is being used, is the best answer. If further details or sample copies are desired, write to Albert Sonnich- sen, the Editor of the "Home Co-oper ator," Willimantic, Connecticut. into their legislatures at the ear liest possible moment. Copies of the Model Law will be sent on request. A MODEL CO-OPERATIVE LAW A Model Co-operative Law for adoption by the various State Legis latures has been drafted after more than a year of study by the Commit tee on Legislation of The League. The Model Law fills a real need. There are few States having even passable laws governing Co-opera tive societies. Some States do not permit Co-operatives to follow the Rochdale principle of "one vote for every membmer;" some allow proxy voting. Very few States have drawn a clear distinction between Roch dale Co-operation and the fake ar ticle. The Model Law was drawn up with a view to these and many other factors. If adopted universally, the Model Law will undoubtedly stimulate the development of the Movement, while at the same time stamping out the fakers. Co-operative societies should prevail on the State repre sentatives in their districts to intro duce the Model Co-operative Law HOUSING IN EUROPE Our readers will be interested in an article appearing in the February number of the Review of Reviews, entitled, "Co-operative Homes for Europe's Homeless," by Agnes Dyer Warbasse. It is an article of 7,000 words with sixteen illustrations, de scribing at length her studies of co operative housing in nine European countries during last summer. The manner in which the housing crisis is being handled by our fellow Co-oper ators abroad is most encouraging and stimulating. WOMEN'S GUILD ORGANIZED IN A COURT-ROOM The Court Room at Pratt, Kansas, was used for an unusual purpose last month by the Co-operators of that city. Permission was secured for the use of the Court Room by the Co-op erative Society which held an educa tional meeting at which Mrs. Mabel W. Cheel, of The League, spoke. Be fore the meeting had been finally ar ranged for, Mrs. Cheel insisted on having women at the meeting. One hundred and fifty women turned out, interested and keen for an afternoon in court. An enthusiastic meeting was held, which was followed by the formation of a Woman's Guild. It was a sight good for the eyes of Co-operators. In the rotunda of the Court House, tables were set up from which refreshments were served to the audience after the meeting. Law yers and clerks who had occasion to visit the Court House to file papers rubbed their eyes in astonishment to see the place in the hands of the co operative society. Since this meeting, many women have joined the society, and the or ganization of the Women's Guild promises to be of substantial help in promoting loyalty and enthusiasm among the members. 30 CO-OPERATION CO-OPERATION 31 NEWS AND COMMENT 1 1 ,i CO-OPERATIVE MOVING PIC TURE THEATRE It is possible for the audience to run the show. A fine-looking theatre building was erected and is owned by the people of New Athens, 111., on a co-operative basis. Mr. Wuess, the manager of the local co-operative store, took the initiative and put the proposition up to the members of his society and the rest of the citizens of the little town. There was not a decent show house in the community, and he proposed that the citizens who liked shows should put up the money themselves and build one. Immedi ately $15,000 was raised in cash, a mortgage loan of a similar amount was secured from the local bank, and the theatre became a fact. Four nights a week the society runs a mov ing picture show, charging only ten cents admission. The profits now go to paying up the mortgage. On the other two nights of the week the theatre is rented to outsiders, some times to regular theatrical road shows, which hitherto had never been able to visit the town. The interior is beautifully fitted up and seats 700 people. Similar co-operative theatres may be found in Beuld and Staunton, 111., and in Newmanstown, Pa. CO-OPERATIVE BANK AT HAMMOND, IND. On October 20th the Brotherhood of Locomotive Engineers bought 51 per cent of the stock of the People's State Bank of Hammond, Ind., which is now known as the People's Co-oper ative State Bank of Hammond, Ind. This bank is being operated along the same lines as the Brotherhood of Locomotive Engineers' Co-operative National Bank and some of the gen eral officers of the B. of L. E. are on its board of directors. Since the re organization of the Hammond Bank its deposits have grown over $60,000. Hammond and vicinity is a highly in dustrial section, and this bank gives the workers a fine opportunity to in vest their efforts and their money in the great work of democratizing finance. HOW THE FARMERS' UNION IN SURES THE CO-OPERATORS The Farmers' Union Co-operative Insurance Company began work in October, 1918, and by August, 1921, had eleven and a half millions of dol lars of insurance in force. The farm ers are insured against loss by fire, lightning, windstorm, and tornado. The cost has proved to be about $7.50 per $1,000 for three years, whereas the same insurance in the old-line companies would be about $17.50. Therefore the cost of co-operative in surance to these farmers is less than half of what it once was when they were at the mercy of profit-making insurance companies. In three years these Co-operators have saved themselves more than half a million dollars. They have also learned to run the complicated in surance business. And now they are preparing to go in for hail insurance and other activities beyond that. The workers of our cities can learn some thing from these agricultural Union ists and Co-operators. THE CLEVELAND DAIRY PROGRESSES The Consumers' Milk Distributing Society of Cleveland, Ohio, which was started about the first of December, had collected and had in hand over $8,000 in the first month. Over $20,000 had been subscribed. The private milk dealers at first told the people of Cleveland that they were making only a quarter of a cent a quart on milk. But since the co operative creamery has started to or ganise, the private dpalers have put down the price of milk two cents. The co-operative cloud on the horizon seems to be accomplishing something. The dealers, according to their own statements, now feel so sorry for the people that they are willing to lose one and three quarters of a cent a quart. Thus the co-op creamery is already saving the people over $1,000 a day on their milk bills. When the creamery starts operations and there is a drop of a cent or two more, there may be a saving of $100,000 a month to the people. In other words, the co-op is indirectly declaring divi dends to consumers equivalent to 10 per cent on over $3,500,000 of sales a year. ______ ILLINOIS STORES THRIVE The news coming in from the local societies in Illinois is encouraging. The Farmington Co-operative Society returned savings to its members, of 8 per cent, amounting to $2,733. This society did a business during the last quarter of $43,074. About a year ago its business was in the neighbor hood of $20,000 a quarter, so that the society has made a gain of more than 100 per cent in business. This co-op is one of the Rochdale societies, affili ated with the Central States Co-op erative Wholesale Society. The Pana Co-operative Society, de spite its slender resources, which amounted only to $3,920, paid a 5 per cent savings-return during its last quarter, in addition to interest on share and loan capital. Street, near the Curb Market. Real co-operation is penetrating into the district of "big business." "OUR CAFETERIA"—NEW YORK CITY The last balance sheet of Our Cafe teria, organized in 1920, for the last half-year shows that the current as sets are more than eighteen times the current liabilities. For the six months $82,000 worth of business was done. After deducting all administrative and operating expenses and after set ting aside $1,874 for depreciation and taxes, there remained a surplus of $5,529 for the half year. An 8 per cent savings-return was paid. This co-operative restaurant now uses two whole buildings in New York City— 52 East 25th Street and 54 Irving Place. It has recently opened a new downtown branch at 32 Thames A MINIATURE CO-OPERATIVE IN CLEVELAND The co-operative idea is spreading in Cleveland, Ohio. The girls of the Industrial Club of the Y. W. C. A. have started a co-operative store. It is said to be the smallest department store in the city. Its stock occupies a space about as big as a couple of writing desks, and consists of most everything that young women want, from hairpins to hand bags. Many hand-made articles are carried. Home made candy is among the goods sold. Shares are $1 each. A savings-re turn of 4 per cent was paid at Christ mas time. Smaller beginnings than these have led to great economic structures in Europe. WARNING FROM MISSOURI The Co-operative Association of America is formed under the com mon law of Missouri as a trust estate, and the records of the Recorder's Office show the names of Clifton C. Fitzpatrick, Oscar H. Damon and Arthur Lesser as Trustees of all funds, property and estates, to hold same in trust during their life time. They have put a large number of stock salesmen in the field and have been successful in floating quite a large amount of this stock. So far their activities have been confined principally to the city of St. Louis. They guarantee the shareholders 5 per cent, discount on his merchandise purchases, and 6 per cent, on their in vestment to be paid out of the sur plus of the Association. In addition, the Association is to retain 3 per cent, of the turnover of the stores. They tell the people that as soon as 300 members have been secured in their neighborhood that a store will be started. So far they have only one store started. The next we heard of them was when two of their stock salesmen 32 CO-OPERATION appeared at Moberly, Mo., and tried to induce the railroadmen who were trying to organize a co-operative so ciety there to turn the organization over to them. They took the matter up with The Co-operative League of Missouri and we advised them to re port these gentlemen to the Prose cuting Attorney immediately. We have heard nothing more from them. We will see that every labor group in the State is advised of the fact that they are in no sense a co operative organization.—The Co operative League of Missouri. STRIKE INSURANCE The masters of industry now realize that, in assuming the "open shop," wage cutting task, they "bit off more than they could chew." Face to face with the fight of their lives, yet eager to protect their own inter ests and safeguard profits, employers in various sections of the country have taken strike insurance.. This precautionary measure assures the employer a certain income, even though his business is completely tied up by a strike against wage re duction, or a strike for any other reason. By investing a small amount of money with his fellow-workers, the wage-earner can also have a most practical form of strike insurance; he can hold a policy in the most re liable company in all the world. Be tween five and six hundred working people in Bloomginton, 111., alone are carrying this model strike insurance, and the number is increasing. Poli cies are written by the Bloomington Co-operative Society, and they are known as membership certificates; they simply signify that the holder owns five shares of stock in the Co-op. Very simple, is it not? Membership in the Co-operative Movement is the greatest, most re liable protection against hardships and inconveniences usually attending protracted strikes and lockouts. A workingman, with an investment in a Co-operative Store, is well provided with strike or lockout insurance, be cause he is guaranteed a specific amount of credit; he knows that he will not suffer hunger, even though he is forced on strike or is locked out. Commercial boycotts and star vation schemes have no terrors for the holder of a membership certificate in a co-operative store. Just how well any local union is prepared to win a strike or a lock out depends largely upon how many members of that organization have provided themselves with practical insurance by identifying themselves with the co-operative movement. Those of us who believe in this won derful movement and work for it must redouble our efforts as insur ance agents, because the trade union movement is going to face a fight for its life, and organized labor must be placed in a state of preparedness. —Martin A. Dillman, in The Bloom ington Searchlight. CO-OPERATION DAWNS AGAIN IN IRELAND In looking back over our Irish Movement during the terrible period now happily drawing to a close, it is consoling to find that notwithstand ing all the hardships and untoward circumstances under which it has la bored, a certain amount of real pro gress has been made. Many of our creamery societies have adopted the general store idea with much more far-reaching results than the ma terial convenience of such expansions. Members or milk suppliers of these societies whose interest in the concern did not extend beyond the price they received for their milk, and whose knowledge of the Movement was a blank page, have been transformed into earnest, enthusiastic Co-opera tors. The Irish Co-operative Women's Guild Movement has struck its roots deeply into the working of societies, and it is destined to grow into a pow erful influence for co-operative pro gress. Manufacturing of our famous Irish homespuns has been taken in hand, on co-operative lines, and the CO-OPERATION manufacture of clothing is already one of our chief Co-operative develop ments. In various other directions the co-operative idea is being en grafted on industry. There are other industries lending themselves in a particular manner to co-operative enterprise. What is now to prevent our engaging in them? What about our once famous tan- naries ? How much longer are our in numerable mills to remain as solitary ruins along the banks of our noble rivers? When and by whom shall our silver, lead, copper and iron mines be re-opened? What about the un told wealth of our fisheries, our tex tiles, our foundries ? Shall we await the advent of syndicates of capital ists to exploit our country, enrich themselves at the expense of our la bor, and substitute an economic for a political slavery on our race? Or shall we, as men, as Co-operators, look squarely at the facts presented, and recognizing in their true perspec tive the potentialities of our country, determine, by combined effort, to re store her industrial life, to develop her bounteous and varied resources, and to make her what she was in tended by God and Nature to be, a queen amongst the nations of the earth?—From the Irish Agricultural Wholesale Society Bulletin. WISDOM FROM GERMANY During the session of the Reichs tag, November 17th, the Minister of Public Economy, Herr Schmidt, re sponding to the complaints against those who were exploiting the misery of the public, made the following re marks concerning the co-operatives: "The consumer has within his grasp a weapon which is very powerful, with which to defend himself against the exactions of business; it is the co operative organization. Let him make use of it. He can be sure that the little that he gives to the co-opera tives will not go toward the payment of tithes to commercial speculation. "I see the position of the consumers reinforced by means of the consum ers' co-operatives and the network of their organization. I wish to call at tention to the co-operatives, which, through their development, are com peting against the commercial inter ests in cutting down high prices. This practice of self-help, this educa tion of the consumer is, in my opinion, worth infinitely more than all the laws and all the penal decrees." ITALIAN GOVERNMENT AIDS CO-OPERATION The Italian Parliament recently passed a law which increases by 200,- 000,0000 lire, the amount granted by the State to the National Credit In stitute for Co-operation. This Insti tute which has headquarters in Rome and about twenty branches in the chief provincial towns was consti tuted by Royal decree in 1913, in or der to place at the disposal of co operative societies of all kinds the 'ne cessary credit for the development of their activities. The Institute at Rome is the most important financial establishment of Italian Co-operation. At the end of 1919 it had relations with 5,370 co operative societies, comprising 3,621 distributive societies, 1,227 produc tive and labor societies, 349 agricul tural societies, 22 agrarian universi ties, and 151 miscellaneous societies. During 1920 it granted loans to the total amount of 885,000,0000 lire (against 310,000,000 in 1919). Dur ing 1920 loans to the amount of 142,- 000,000 lire were granted to 380 pro ductive and labor societies, in order to enable them to execute works to the value of 218,000,000 lire. The agricultural societies received consid erable support from the Institute, and were thus enabled to more than treble the amount of land under their culti vation. ______ HUNGARIAN DOCTORS CO OPERATE The National Union of Hungarian Doctors organized a co-operative so ciety for the manufacture of surgical instruments and orthopedic appli- 34 CO-OPERATION CO-OPERATION 35 ances. Organization proceeded slowly until the "Hangya" Union gave its support to the new society. Work shops have now been opened in which from 30 to 40 skilled workmen are employed, manufacturing the most delicate surgical instruments. Or thopedic appliances, hospital furni ture, laboratory requisites, operating tables, etc., are also being manufac tured. The Board of Directors of the society consists of doctors and of ex perienced Co-operators. Two large co-operative unions in Hungary, the "Hangya" and the Cen tral Co-operative Credit Institute, have established a first-class hospital with 60 beds. This hospital is avail able for employees of the co-operative societies. A FRENCH "CO-OPERATIVE DAY" The Co-operators of France made a national drive for increased member ship on December 4th. The day had been prepared for as an important gala day for French Co-operators. The French Union was busy for weeks preparing posters, and literature, or ganizing meetings in various cities, all culminating in a great appeal to non-members to come into the Co operative Movement. The fourth of December fell on a Sunday, and the day was celebrated throughout the whole country. A special edition of "L'Action Co-operative," the official journal of the French Movement, was distributed. Most of the local societies partici pating in the drive had very gratify ing results. The Co-operative Union at Paris led in the number of new members recruited, and the capital collected. In one little town in the region of the Marne, it was found that all the inhabitants were Co-operators, with the exception of seven men. The usual mass meeting was held in this town on "Co-operative Day," and then the whole mass meeting went in a body to the homes of the seven non- members. Needless to say, the seven joined! The town is now 100 per cent co-operative. At San Quentin, 123 new members were signed up and the capital was increased by 102,000 francs, the day of the big drive. At Gueret, 150 new members and 30,000 francs were col lected in one day. The reports are not as yet all in for entire France, but all indications prove that the national campaign during "Co-operative Day" was a huge success. Up to the 1st of January, 222 so cieties reported gains of 14,597 new members. In the banks, the capital was increased 1,606,389 francs and de posits were increased 100,000 francs. CORRESPONDENCE COURSE ON CO-OPERATION IN THE COLLEGE OF FRANCE Charles Gide, the eminent Co- operator, author and economist, has been appointed to the new chair of Co-operation at the College of France, Paris. This is considered by our French fellow Co-operators to be an event of extreme importance. They see in it a recognition of the value and the position that the Co-operative Movement occupies in the national life. Although seventy-four years old and weighed down with the numer ous and important positions that he has continuously occupied in the educational and economic world, Monsieur Gide assumes his new du ties with enthusiasm, for he is dedi cated to the promotion of the knowl edge of what he believes to be "the greatest of all causes—the Consum ers' Co-operative Movement." A dinner was tendered to him on the eve of the opening of the course at which glowing tributes to the years of service were made to "France's foremost Co-operator, the kind friend, the wise teacher, the illustrious leader of the Co-opera tors of all lands."—Extract from communication from A. Daudet- Bancel, December 21; Union of French Consumers' Societies. THE CONDITION OF CHAIN STORES IN NEBRASKA Our Farmers' Union State Exchange is operating eight branch stores. The first of these was opened in March, 1920, and five others were opened in that year. Two have been put in since last spring. You understand how these are organized. The local people take stock in the State Ex change, and the Exchange owns and oper ates the stores. Of course, the branch store business is quite incidental to the larger business of the Exchange in supply ing independent co-operative associations and groups of Farmers' Union members throughout the state. Up to last March the branch stores were not very satisfactory to anybody, either the local people or the Exchange manage ment. In March, the Exchange employed a chain store expert, a man formerly with the "A. & P." system, to put the branches on a satisfactory basis, and to extend the system. He has succeeded in making the branch stores satisfactory to the local people, but they are still financially un profitable. That is why only two stores have been added to the system since the expert came. No others are contemplated. One of these branch stores, one of the two started last summer, is here in Omaha. It differs from the others in that its pat rons subscribe to no stock in the State Exchange. The reason for putting it in was to afford an outlet for produce coming to the Exchange from stores out in the state. I understand that the Exchange has offered to turn this store over to the labor ing people here whenever they organize an association to handle it. If the labor peo ple of Omaha are ever going to do anything co-operatively they should do it for them selves, and not be spoon-fed. Just now the Board of Directors of the Farmers' Union State Exchange is consid ering a form of contract with independent co-operative stores throughout the state to supply them with all of their goods. This would give all of the advantages of the chain-store system, without the very serious disadvantages. Our big problem has been to get the local Farmers' Union Co-operative stores to mobilize their buying through the State Exchange. This diffi culty is made the greater by the fact that the stock of the Exchange is owned by in dividuals, instead of the local associations, as it should be. L. S. HERRON. FROM CRESTLINE, OHIO The Crestline Co-operative has opened a second store in the downtown part of our village, which is operated entirely cash and carry. The first store retains the credit and delivery system. We opened about eight weeks ago, and have had good suc cess so far. On November 29 we had a stockholders' meeting, attended by over 250 members and families and friends. Roy Shanks was speaker of the evening and gave us a fine interesting talk. He also helped in getting the new store started. We remembered your advice and had the meeting largely social—music, speaking, and lunch, with our best coffee, real cream, cream doughnuts and sandwiches served to all present, and dancing afterwards. Everybody was en thusiastic and had a good time. R. G. DONALDSON, Vice-Pres. Crestline Co-operative Co. MAKING CO-OPERATORS IN WISCONSIN Enclosed please find one check, covering $20, and another one, covering $5. The Co-operative Central Exchange decided to donate one year's subscription of "Co operation" to twenty of the students at tending our last Co-operative course. The 25 names are appended. The other five subs have been solicited by the under signed. Wishing you a happy and .prosperous New Year, I am Yours for Co-operation. SEVERI ALANNE. YARDLEY HAS DIFFICULTIES AND HOPE The manager we had previous to July 10, 1921, ran us behind $700 in five months, and the stockholders at their meeting last June were ready to quit; but we succeeded in changing by-laws and changing our shares from $100 to $25 a share. The newly-elected Board took hold and fired the manager and hired another, who, in turn, fired a clerk and hired another. In voice at end of first quarter showed over $200 on the right side for the quarter; but this present quarter is not going to be so good, as business has fallen off. However, beginning the first of the year, the em ployees have cut their salaries the sum total of $22 per month, so you see we are having to fight for our bare existence. We are handicapped for want of cash to buy with, as we pay cash for all goods bought, and sell on credit to members. We have several loyal Co-operators, but we can't say much for a number of our members. 36 CO-OPERATION CO-OPERATION I do believe we are going to be able to live through it. We don't get the support of the community we should have by far; yet we give better service, better goods, and, I honestly believe, better prices. Yours, etc., H. H. PERKINS, Secretary Consumers' Co-operative Society. Yardley, Wash., December 21, 1921. HAPPINESS IN WORKING TOGETHER There is no happiness greater than that obtained from the association of kindred spirits, searching toward a goal which means the good of all mankind. I am happy to be associated with you. MARY RAOUL MILLIS, Atlanta, Ga., Co-operative Society. THE ONE-VOTE PRINCIPLE To my mind, when the fundamental prin ciple of one vote to one member is broken the whole foundation of Co-operation is broken. H. HASKELL, Union Workers' Credit Union. Boston, Mass. BOOK REVIEW "The Consumers' Co-operative Movement." The book with the above title, by Sidney and Beatrice Webb, published by Long mans, Green & Co., is not a history of the Co-operative Movement, but a technical dis cussion of its methods and its relation to other movements making for democracy. It is based especially upon the British Movement. The authors frankly take the ground that Co-operation need no longer be discussed as a means for helping the poor to save a little or as a scheme for reducing the cost of living, but that the Consumers' Co-operative Movement is capable of sup planting in a large measure the capitalist system. Six full chapters contain not only a vast amount of information, but present a phil osophy to which the Movement itself has given rise. The first chapter describes the distributive store and the practical work ing of the society. The deficiencies of educational work is deplored. When socie ties progress enough to employ a full-time educational secretary they are found pay ing him less than one-half what they pay •the store manager. They note the same disregard for the value of the intellectual teacher, compared with the employee who has to do with money and goods, that is found in capitalistic business. The chapters on federal institutions deals with national organizations such as the C. W. S., the Union and the Women's Guild. A chapter on co-operative employees give_s the essential information on this subject from the British standpoint. The chapter on the effects upon the Co-opera tive Movement of the great war sets forth the facts which reveal the prostitution of the British government to the privileged profit-making interests and the reasons why the Co-operators were impelled to en ter politics. The Co-operative Movement has reached a point at which criticism of its defects must not be withheld. The Webbs have realized this, and have written a chapter on some remediable defects and shortcom ings of the Movement in Great Britain. This is a most opportune contribution. It is fair and impartial and should prompt British Co-operators to give it their serious consideration—and the Webbs their thanks. The future of Consumers' Co-operation is discussed in the most illuminating man ner. Conclusions are based on facts. The authors visualize the continuous growth of Co-operation, but do not consider it as a substitute for the state, nor do they ex press a belief that it may supplant the state. They see a place in the future for both voluntary and compulsory association of the people. They say: "The Consumers' Co-operative Move ment in Great Britain was for the first half century of its development from the Toad Lane Store ignored by the news papers, unsuspected by Parliament, barely noticed by the .professors of political econ omy, unmentioned in the contemporary me moirs and diaries of the leaders of society, and not even alluded to in the biographies of such political personages as Cobden and Bright, Gladstone and Disraeli, or in the speeches of Salisbury and Chamberlain. A hundred years hence, we venture to pre dict, school text books and learned trea tises will give more space to consumers' Co-operation, its constitution and ramifi cations, than to the rise and fall of political parties or the personalities of successive Prime Ministers." The Webbs are not to be classified among the British students of social problems who are still confused as to "the place in co operation" of the syndicalist producers groups and the "self-governing workshop." They distinctly assert that by the Co-oper ative Movement they mean "exclusively the association of consumers for the purpose of superseding the capitalist profitmaker in the conduct of industries and services." British Co-operators need to get this idea well established, because some are still under the spell of confusion which came down from Owen, Neale, Holyoake and Williams. Such work as the W_ebbs' and that of Leonard Woolf cannot fail to make their impression upon British thought. J. P. W. PUBLICATIONS OF THE Co-operative League of America HISTORICAL p«* C°PV Pe* 10(> 3. Story of Co-operation .................................................$ .10 $6.00 7. British Co-operative Movement ........................................ .10 6.00 10. A Baker and What He Baked (Belgian Movement)...................... .05 38. Co-operative Consumers' Movement in the United States............... .05 4.00 TECHNICAL 4. Hew to Start and Run a. Rochdale Co-operative Society.................. .10 4.00 5. System of Store Records and Accounts................................ .50 6. A Model Constitution and By-Laws for a Co-operative Society........... .05 2.60 8. Co-operative Education. Duties of Educational Committee Defined..... .10 9. How to Start a. Co-operative Wholesale................................ .10 27. Why Co-operative Stores Fail .............. .......................... .02 1.00 2. Co-operative Store Management ...................................... .10 14. How to Start and Run a Women's Guild................................ .05 MISCELLANEOUS 46. Producers' Co-operative Industries ................................... .10 11. Control of Industry by the People Through the Co-operative Movement... .10 12. Credit Union and Co-operative Store.................................. .05 1.76 34. Co-operative Movement (Yiddish) .................................... .02 1.25 43. Co-operative Housing ................................................. .10 45. Harmonizing Co-operative Producers and Consumers.................... .03 ONE-PAGE LEAFLETS (One cent each; 50 cents per 100; $2.50 per 500; $4 per 1,000) (1) Principles and Aims of the Co-operative League of America; (17) Do You Know Why You Should Be a. Co-operator; (20) Why Loyalty Is Necessary; (21) Cost and Crime of Credit; (22) A Real Co-operator; (25) Resolutions Adopted by A. F. of L.; (26) Factory Workers, Co-operatel; (28) Do You Know About Co-operation in Europe?; (40) Have You a Committee on Education and Recreation?; (44) What Is the Co-operative Movement? Miscellaneous Educational Leaflets. MONTHLY PUBLICATIONS CO-OPERATION—(In bundle lots, $7.50 per hundred). Subscription, per year......... .$1.00 HOME CO-OPERATOR, 4 pages ................................................ $1 per 100 INTERNATIONAL CO-OPERATIVE BULLETIN (Pub. by The I. C. A.)...... .per year, $1.50 BOOKS The following books are recommended as containing the best discussions of the modern Co-operative Movement. They made be ordered through The League: Bubnoff, J. B.: The Co-operative Movement in Russia, 1917.......................... .$1.25 Faber, Harald: Co-operation in Danish Agriculture, 1918... .......................... 2.75 Flanagan, J. A.: Wholesale Co-operation in Scotland, 1920............................ 2.00 Gebhard, Hannes: Co-operation in Finland, 1916...................................... 2.00 Gide, C.: Consumers' Co-operative Societies, 1921...................................... 2.50 Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, $2.00; paper bound ........................................................................... .60 History of Co-operation in the United States. Vol VI, John Hopkins University Studies, 1888 ...............................................................................4.00 Holyoake, George Jacob: The History of Co-operation, 1908............................ 2.00 Holyoake, George Jacob: The History of the Rochdale Pioneers........................ 2.00 Howe, Fred C.: Denmark, a Co-operative Commonwealth, 1921.......................... 2.50 Maxwell, Wm.: History of Co-operation in Scotland, 1910.............................. 2.00 Nicholson, Isa: Our Story ............................................................ .25 Powell, G. Harold: Co-operation in Agriculture. Macmillan ........................... 1.50 Redfern, Percy: The Story of the C. W. S............................................. 2.00 Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918....................... 2.50 Smith-Gordon: Co-operation in Many Lands, 1920...................................... 2.50 Sonnichsen, Albert: Consumers' Co-operation, 1919. Cloth bound, $1.75; paper bound... .75 Stolinsky, A.: The Co-operative Movement. In Yiddish................................ 1.00 Webb, B. and S.: The Consumers' Co-operative Movement, 1921....................... 2.00 Webb, Catherine: Industrial Co-operation, 1917 ...................................... 1.50 Woolf, Leonard: Co-operation and the Future of Industry............................. 2.00 Woolf, L.: Socialism and Co-operation................................................ 2.00 "The Co-operative Consumer" and "Co-operation," Vols. I (1914-15), II (1916), III (1917), IV (1918), V (1919), VI (1920), VII (1921)........................................ 1.25 Transactions of Second American Co-operative Convention, 1920....................... 1.00 (Ten cents postage should be added for books which cost more than $2.00, and five cents for the smaller books.) TOE CO-OPERATIVE LEAGUE OF AMERICA (Member of The International Co-operative Allinace) Executive Office: 2 West 13th Street, New York An educational organization for teaching the history, principles, methods and aims of the Co-operative Movement and for the promotion of Co-operation in the United States. Join the League and thus help promote the education work of the Co-opera tive Movement. Individual Membership, 1.00 a year. Subscribe for CO-OPERATION Formerly the "Co-operative Consumer." The Monthly Magazine of The League. Keep in touch with the Movement, $1.00 a year. This Journal is Not Published for Front Co-operative Central Exchange Wholesale Grocers and Jobbers, Bakers We supply goods to Co-operative Societies ONLY We are owned and controlled by Co-operative Societies. We are organized to enable Co-operative Societies to do collectively what they cannot do indi vidually. Co-operative Central Exchange Offices, Warehouses and Plant: Winter Street and Ogden Ave., SUPERIOR, WIS. Co-operators' Ltd. Mutual Fire Insurance Co. Is now writing Insurance in State of Wisconsin. The Canadian Co-operator Brantford, Ontario, Canada The organ of the Canadian Co-opera tive Movement* owned by and con ducted under the auspices of The Co-operative Union of Canada. Published monthly; 75c per annum MOVING PICTURES and Stereopticon Lectures may be rented from CO-OPERATIVE LEAGUE OF ABIERICA 2 West 13th St., New York City 1. "Some Examples of English Co-operation." Moving pictures of factory processes (two reels) ............................... .$5.00 2. "Coperation in the United States." With 63 Stereopticon views ........... .$3.00 3. "The Co-operative Momevent in Russia." With 36 colored Stereopticon views... .$3.00 Co-operation in Scotland In no part of the world is Co-operation further developed, or more successfully practised than in Scotland. If you wish to keep to touch, read "The Scottish Co-operator" (Published Weekly) Subscription: Year 12 sh.; half-year, 6 sh. Address, US Falsely Road, Glasgow, Scotland THE PRODUCER Issued Monthly Price 3d. If you want to keep in touch with business, organization, administra tive affairs, and problems of the British Co-operative Movement, read THE PRODUCER. Published by Co-operative Wholesale Society, Inc. 1 Balloon Street, Manchester. Post free 4 sh. 6d. a year. The Trade and Technical Organ of British Co-operation. THE HOME CO-OPERATOR A four-page magazine for use in co-operative societies. Issued monthly, in bundles, $1 per hundred. Published by The Co-operative League Write to the Managing Editor, Albert Son- nichsen, Willimatic, Conn. i i •ir: f A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in vol untary organization, produce and distribute for their own use the things they need Published monthly by the Co-operative League, 2 West Thirteenth Street, New York City. J. P. Warbasse, Editor. Price, $1.00 a year. Entered as second class matter, December 19, 1917, at the Post Office at New York, N. Y., under ,the Act of March 3, 1879. Vol. VIII, No. 3 MARCH, 1822 10 Cents VITAL ISSUES GOVERNMENT LOANS TO CO OPERATIVES The chief concern of Governments these days is to keep themselves alive. The people are growing restless un der the profiteering which they feel government in some way protects. The discontent of the masses is not to be treated lightly. England deals with it by paying full unemployment benefits. France treats the problem by maintaining the biggest army in the world. Germany pays unemploy ment benefits, but does most by pro viding employment; loans are made t o co-operative societies i n large amounts; and unemployment is much less than in the allied countries. In German towns and cities the housing shortage is met by building houses. In the United States it is met by talk on the part of politicians and profiteering on the part of land lords and builders. German co-opera tive societies are granted loans by the government, the district and the mun icipality up to 60 or 80 per cent of the value of the property. These loans are made for twenty years without interest, provided that the property is occupied by the owners and not rented or sold for profit. The only people who can comply with these re quirements are the Co-operators, so they are doing the building. The British government in India made loans to small co-operative banks. The Italian government -and the French government from time to time have made loans to co-opera tive consumers' distributive societies when public distress has been espe cially bad. The time has come when we should be thinking about these things in the United States. We have unemployment, growing discontent, a lack of houses, and big finance in con trol of the money and credit of the country. Why wait longer? The government is subsidizing the rail roads in cold cash to the tune of $600,- 000,000. Not many years ago the Government gave the railroadis an area of land equal in size to New Eng land. Most of them now are on the verge of bankruptcy and loaded to the gunnels with watered stock. All ;his is just a temporary present to -he stockholders. The roads will run down again and the Government will take them over again, just as sure as cars are run for profits. Now if these stockholders are such pets of the government, why would it not be just as good to subsidize the plain people a little? We have the Federal Loan Act.. It was supposed to be for the people. But it is hog-tied, downed, and brand ed with the seal and sign of Wall flllll 38 CO-OPERATION CO-OPERATION 39 Street. The farmers, of course, can get something out of it; but when we think of what such a measure might do, it is pathetic to witness the pov erty of service it renders the people. This Federal Loan Act should be am plified so as to provide credit to co operative societies. Such loans to co-operative societies should be protected by supervision and guarantees that the societies are not run for profit. That means that they must be bona fide co-operatives. And just there is the difficulty. We have to explain and teach—patiently and with long-suffering—just what Co-operation means, and that it is pos sible for people to do things for them selves without the purpose of making profit out of somebody else. Legisla tors can be made to understand, if one but have the patience of a teacher. Along with such provisions should go acts providing respectively for the organization of national co-operative banks, distributive societies, and building societies. Government, state and municipal loans to such organ izations would give more relief than subsidies to enterprises that are first and last money-making schemes, the .social value of which is secondary to profits. PROFITS, SALES AND TAXES In Europe the hard-up govern ments are attempting to tax the co operative societies the same as they tax the profiteers. In this country we must prepare for the same thing. The words "profits" and "dividends" should be excluded from our co-opera tive language as far as possible. They are proving to be very expensive for the European Co-operators. W e should say "surplus-savings" and "savings-returns" instead. Now we speak also of sales. Sales will be taxed in the United States be fore many years have passed. The Government will soon be resorting to every expedient of taxation possible. "Sales" is a dangerous word. Co operative societies buy goods for their members, but they do not sell to their members. The Co-operators put their money together in order to buy together at wholesale a larger quan tity of goods than any one of them alone could buy. Sometimes they stop with just one purchase, like a house. Sometimes a group of people make only one purchase of something like sewing machines or coal or a car load of potatoes or groceries. They distribute among themselves what they have bought and the transaction is closed. If each puts in twenty-five dollars and a group of people buy $5,000 worth of coal, and they divide the coal equally among themselves they should talk only of buying and distributing coal and not of selling coal. That is the co-operative prin ciple. When a family buys potatoes and every member of the family is a wage earner and contributes equally with the others toward the purchase of the potatoes, they do not sell the potatoes when they come on the table. They buy, distribute and consume. But we have become so steeped with money-making psychology and lingo, that we shall find the 200 peo ple who bought the coal boasting about town that, "We sold $5,000 worth of coal right among our own members." This same habit of thought .should prompt them to say at the table, "We were all very hun gry and our sales of potatoes at din ner today ran up to two potatoes apiece." When the husband at the table, instead of saying, "Please pass me the bread," says, "I want to buy another slice of bread," the victory of the profit psychology is won and the end of the human race is in sight. In our ordinary co-operative .so ciety, running a store, the people put in their money and buy a stock of goods for themselves. But they do not propose to stop with distributing just these goods. They propose to re peat the process. As the goods are distributed among the people who own them they aim to replenish the stock and keep on buying and distri buting to themselves indefinitely. In order to do this they must constantly be putting in money into their com mon fund. This is done in the fol lowing manner: Each member has a credit at the store in his share capi tal ; he has already bought the goods; but when he goes to the store and takes out a package of goods he puts back into the common fund enough money to pay for another package similar to that package and a little more in addition. The money he hands to the manager is his share of the next pool, to go towards buying more goods in common with the money of all the other members. His society does not sell goods to him; it buys goods for him. The co-operative store is not a selling business; it is a buying and distributing business. Confusion arises about this, be cause we Co-operators use the same methods and machinery and employ the same language as the traders do. We make our store look the same as theirs, and our clerks talk the same. We also introduce the complication of selling to the non-member. We do actually sell to him, and we do actu ally make profit from him. For this reason our business with non-mem bers should be kept separately and accounted for in our bookkeeping as something quite apart from our co operative buying and distributing among our members. We should not put down the word "sales" on the report excepting sales to non-members. "Goods distribut ed to members," "goods distributed," "paid in by members," "paid in for goods," "received for goods" or "turn over account," are all correct terms. "Turnover" is not so good. It would be wise to invent a word to meet this need such as, "distributions" or "quit tances" in place of "sales." The United States Government, like the European governments, is stead ily moving on toward bankruptcy. We complain of the burden of taxa tion; but the burden will increase as the years go by. There will be no turnip that will not be squeezed to get blood out of it. It behooves us to think of the future and build care fully now. THEATRE COLLAPSES Over 2,000 people have been killed in theatre collapses in the United States in the past ten years according to a statement in the New York Times of Jan. 30th. The Knickerbock er Theatre in Washington fell last month and killed 100 people. It fell in because it was not built for the purposes for which it was supposed to be used. One thinks of a theatre as being built for purposes of entertainment and recreation. But this theatre like most theatres in the United States was not built for those purposes. The people go on persis tently nursing the fiction that it was. The fact is, it was built and run for the purpose of making profits. Entertainment and recreation are ab solutely secondary matters. There was every reason for putting in cheap material, shoddy material and bribing inspectors to get by with it. To do otherwise would not be good business. After such an accident, there comes a good deal of pious gush and a good deal of impractical resentment. The first is exemplified by the President of the United States issuing a .state ment to the effect that, "The terrible tragedy has deeply depressed all of us and left us wondering about the revolving fates." Fates, but not a word about the cause of the tragedy or a word suggesting its prevention comes from the officials who pre side over the lives of the people under assumption that they are the "best minds." Investigation — oh, "thorough and radical investigations" have been made. More rigid in spection of buildings and punish ments for offenders will be insisted upon. This means that the cost of fixing up the next matter with the building inspector will become a lit tle more expensive. But not a step will be taken by the Washington poli ticians to prevent such occurrences by removing the cause. There are theatres and other com munity buildings that were built for service by the people who use them 40 CO-OPERATION and not for profit. The President, his cabinet, the congress, and all the of ficials of Washington should make a pilgrimage to one of these shrines, that teach the religion of the coming day, and stand before it with bared heads bowed in awe and in reverence to do penance for their blindness and sloth. CO-OPERATION'S DUTY TO TRADE UNIONISTS There is much talk about the duty that the Co-operators owe to trade unionism. It is all very good. Co operative societies should, and do, prefer to hire union labor. In fact, societies stipulate that their em ployees shall be compelled to be long to the union of their particular trade. That is all right; but there is another side to the same question. The Co-operators with equal justice should remember that, where there is a co-operative store, the trade unionists should not buy at the pri vate-profit store. If co-operative employees must join the union, then unionists must join the co-operative society. Let us play the game on the level. The first National Congress of the Workingmen's Co-operative Society of Spain has just been held at Ma drid. The Spaniards are thinking about these matters, too. This con gress agreed that co-operative so cieties should employ none but trade unionists, but they reserve the right to withdraw the advantages granted to their employees if their unions do not exact the same ad vantages from private employees. This means that trade union labor shall not demand from the co-oper ative society what it cannot get from the private-profit making em ployer. This is just plain common sense. They also agreed that strikes shall not affect co-operative socie ties, but that all differences must be submitted to arbitration com mittees, whose decisions are bind ing. This mutual arrangement will have the effect of insuring that the workers in the co-operatives shall enjoy as good conditions as are pre vailing anywhere else, while at the same time it guarantees the co operatives against demands which the general conditions of the indus tries make it impossible to meet. ACCESSORY CO-OPERATION Our American co-operative socie ties have been proven to stick to a standard line of business. There are a few exceptions. At the First Co operative Congress in Springfield in 1918, the Danville, Illinois, society reported contracts with some ten dif ferent industries to give a discount to the members of the society of from ten to fifteen per cent. This arrange ment included, the dentist, florist, un dertaker, furniture dealer, laundry, and tailor. But beyond this sort of accessory business we find that societies may undertake the rental of utensils which are so rarely needed that most fam ilies can not afford to own them. Some of the British societies keep on hand nursing accessories which are rented to members at a very low price. These include such articles as bed pans, fountain syringes, invalids' chairs, crutches, hot water bottles, ice bags, and thermometers. We have found a number of English societies that have on hand, for rental to mem bers, telescopes, microscopes, and opera glasses. This is a field of co-operation which our societies should keep in mind. Members' meetings should discuss the things the society may thus carry in the interest of unsupplied needs. J. P. W. CO-OPERATION 41 EUROPEAN IMPRESSIONS CO-OPERATION IN ENGLAND AND WALES By J. P. WARBASSE The Co-operative Movement really did begin in Great Britain. Nobody knows when. Everybody knows that that was a good place for it to be gin. The people had suffered from the tyranny of the nobility for cen turies—a tyranny that destroyed in fants, the aged and the infirm with the same ruthless brutality as it de stroyed the strong men and women. It was not many years ago that the nobles had their own private gal lowses and prisons for unruly work ers. Then came the industrial era, and the people who owned nothing but their labor-power came under the domination of an equally cruel system at the hands of the owners of the ma chinery of production. But there is something in the human heart that prompts men to struggle on, to hun ger for justice, to want better life and life in greater abundance. Serf dom is not natural. Back through all the ages men have struggled for lib erty. They did it in Great Britain, and the Co-operative Movement is a result of this struggle. The suffering people of Great Brit ain meditated day and night over the problem: how to procure the bare es sentials of life when the largest wages that could be earned by the most arduous toil were not sufficient to provide these essentials. In the early part of the last century it was a crime, punishable by deportation, to combine to try to get more wages. But when the workers got more wages they found that they were pay ing it themselves in the increase in the cost of living. These stubborn facts gave rise to the Co-operative Movement. We know that the Fen- wick Weavers Society existed in 1769 and the Govan Victualling Society was established in 1777. Then came the Bridgeton Victualling Society in 1800 which is still in existence. In 1812 the Lennoxtown Friendly Vic tualling Society was formed and still exists. All of these societies were near Glasgow, Scotland. In that same district between 1800 and 1815 a number of co-operative bakeries were organized. Following these, sporadic societies began to spring up in other industrial centers. The Larkhill Vic tualling Society, Scotland, organized in 1821 and still flourishing, was one of these. In the course of time, the weavers of Rochdale, England, knowing of the success of co-operative societies in Scotland, started their society in 1844. They took the good principles which time had proved and formu lated the methods which best made for success. They did not originate the Movement but they standardized it, and as a result of their standard ization it has gone on to spread out over the world. But if we seek a Garden of Eden from which sprang the race of Co-operators, history must turn back to the Glasgow dis trict of Scotland. London is now the business center of the world; and in London one finds the headquarters of the Internation al Co-operative Alliance. The Brit- tish Co-operative Union also has an office in London. The British Co operative Wholesale Society has there one of its great centers of busi ness and production. The offices and warehouses on Leman Street, the flour mill, soap factory, preserve and other productive works at Silverton seem like old and permanently fixed enterprises. These are the huge ex pressions of Co-operation. London has several distributive so cieties. The total membership of the three big consumers societies is close to 300,000. It is no longer true that Co-operation can not thrive in a big city. Information concerning the Royal Arsenal Society of Woolwich was published in the February num- 42 CO-OPERATION ber of CO-OPERATION by its first Sec retary, W. Rose, now living in the United States. In September last, in company with two of the directors, we drove around in the society's auto mobile and visited its various prem ises. It is in the poorest section of London, surely the most unbeautiful, but it is showing the people the way to economic independence. Its stores are clean and attractive. Among its industries are a bakery, jam and pre serve factory and a creamery which distributes milk to the members. It does a large banking business. It sells practically everything its mem bers use. It owns many dwelling houses, a twenty acre recreation park and a country house with twenty more acres of land about it. This lat ter very beautiful estate is used as a vacation place for the members. This society has a paid full-time edu cational director and appropriates $20,000 a year to co-operative educa tion. When we were in Holland we met fifty of their members making a study tour of that country. Next summer a party of their members are going to Germany. As the two directors, who had gone about with us, drove away in the limousine owned by the society, it was most comforting to know that these men from the ranks of labor now were in a position to enjoy the comforts of the rich by virtue of having given the best of their lives to their co operative society. We visited Letchworth village and Welwyn. These are building enter prises of large possibilities but not purely co-operative as are the build ing societies in Germany. England is backward in the field of real co operative housing. In order to see a smaller co-opera tive comunity we went to Desborough, a town of 4,000 population (about 1,000 families). The membership of the co-operative society is 2,200. About 900 of the members are em ployed in the co-operative industries. The society has stores; a bakery; milk distribution; coal distribution; a farm of 4,000 acres which produces vegeta bles, poultry, fruit, wood, eggs, butter and meat. It owns also an iron mine, employing 120 of its members. It has developed housing until practically every member lives in his own house. Its meeting hall is the common meet ing room of the town. Desborough has also a corset factory of the Co operative Wholesale Society and a producers' -shoe factory. The vast majority of people work, spend and live in a co-operative society. In 1914 the society bought outright-the neigh boring village of Harrington—'lands, houses, everything, including the church and living and the right to dictate the particular theology that should be preached. Private business in Desborough plays a small role. Then we went to Kittering which has 30,000 population (7,000 fam ilies), and a co-operative society with 12,500 members. The reason for the large membership of this society is that some families have several members. The law in Great Britain permits a member to have not more than $1,000 (200 pounds) in a co operative society. The members like to leave their dividends in the society; when a member's dividends bring his capital up to $1,000, he has his wife join; and when she has $1,000 to her credit, then they begin to have the children join. Still this does not ab sorb all of the money at Kittering so they started a "Penny Bank." The law permits children or any one to deposit in this up to $100 (20 pounds. Some families have every member of the family in this bank. Some are made members the day they are born. This bank has 10,000 de positors. When they get to be six teen years old they may join the so ciety and put in $1,000. Thus the bank supplies the society with funds and the society members have a place to deposit their surplus in the names of their children. The bank pays 4 per cent interest; but many people draw their money out of the com mercial savings bank which pays 5 per cent to put it in the co-operative bank. CO-OPERATION 43 This Kittering society does a yearly business of $5,000,000 and has paid a 10 per cent dividend regularly for 30 years. Its share capital amounts to $2,000,000. It has $1,000,000 invest ed in the C. W. S. In 1901 the society paid $50,000 for a tract of land and built 180 houses. Since that, it has continued to maintain a building de partment and has in constant employ 70 building workers. These men are required for repair work, remodelling and new construction among its many buildings. New members are joining at the rate of 1,000 a year. It owns a farm of 78 acres. It kills its own meat in its own slaughter house. Its educational committee has some educational function every two weeks. Its bakery produces most of the bread in the town. So substantial is the surplus of the society that the officers rejoice in the fact that the members have drawn out $500,000 in cash dur ing the past year on account of hard times and unemployment without jeopardizing the society. It shows that the members have put in money against a rainy day and when the rainy day comes the money is there to serve them. I have cited these last two societies because they show what is going on in Great Britain—the steady en croachment of Co-operation upon the field of private business and the steady increase in co-operative activi ties in the lives of the people. Long Buckby and many other societies re present the major portion of the pop ulation of their communitieiS. In some parts of Belgium they speak of the point of "co-operative saturation" as having been reached, but this point has not yet been reached in any part of Great Britain. Leaving Kittering, we went to Man chester, "the cradle of Co-operation." The British Co-operative Wholesale Society is the biggest thing in Man chester. As a matter of fact, it is the most important business in the Brit ish Empire. It is the greatest thing Co-operation has produced. Its blocks of buildings in the Balloon St. district are at least imposing. The to bacco works in Manchester, the flour mills on the ship canal, the .soap works and factory at Irlam, the bis cuit and confectionery factories at Crumpsall, the preserve works at Middleton, which we visited, all tes tify to the ability of the British Co- operators to do things on a big scale. Britain is dotted with the factories and warehouses of the C. W. S. which produce most everything from candy to automobiles. But one criticism can be offered: it needs younger blood. Younger men would be prone to visit other factories in other countries and discover and adopt new and up-to- date methods. The C. W. S. is suffer ing from the disadvantage of having attained to a success which satisfies the majority of its directors. Yet any criticism of this institution must yield to the fact that it is the most important and the most successful commercial enterprise in the world. It is the organization around which revolves the best hopes of the work ing millions of Great Britain. We visited also the works of the Co-operative Printing Society, the C. W. S. printing house, and the offices of the National Union of Distributive and Allied Workers. Near the Balloon Street center is Holyoke House, the educational cen ter of Great Britain. Here is a beau tiful building which stands apart like a shining star in the darkness. Man chester is dirty, gloomy and unbeau tiful. The people live mostly in the presence of architectural ugliness. Poverty and squalor are conspicuous. The wonder is that so many men and women of high ideals and love of beauty grow up in such an atmo sphere. It is a testimony to the ster ling and inherent virtue of the Brit ish character. Here stands Holyoke House, the headquarters of the Brit ish Co-operative Union, like a rich diadem shedding its radiance abroad not only throughout Britain but to every corner of the world. Here are the headquarters of the educational department, the co-operative school movement, the library and the publi cations. Would that The Co-operative 44 CO-OPERATION League in the United States might have such a home as this. Some day we shall. Education is worthy of it. Across the desolate waste, known as the Lancashire mill district, we motored in a C. W. S. automobile to Rochdale. The original Toadlane store of the Pioneers is occupied by a bird merchant who sells canary birds and other captive creatures. He told me that the spirit of the pioneers was gone and had been supplanted by the "dividend hunters." However, the old society still thrives. It has 26,000 members and is the biggest business in Rochdale—$5,000,000 a year. Another society has 15,000. These two societies should be united in one; that would give a membership of 33,000, a larger number than Roch dale has families. The society should buy the old Toad Lane building; if it does not, then the British Union or the Wholesale should. The bird deal er is a profanity of a sacred temple. The Cardiff Co-operative Society which we visited is the same sound organization as is to be found in other British cities. The best and biggest stores, good goods, and a steadily in creasing membership are the char acteristics. This society is under the wing of the C. W. S. which has in Cardiff a great warehouse and office building which is by far the finest commercial building in Wales. It was built too big, in order to provide for future expansion; but now it is too crowded, and the C. W. S. is planning an addition on its adjacent grounds. At the British Trade Union Congress which we attended in Cardiff, Co operation occupied a considerable part of the agenda. I talked with some of the labor leaders, all of whom are keenly interested in our American problems. Robert Smilie showed a remarkable and sympathetic knowl edge and interest in our Co-opera tive Movement among the mine workers. At Southampton, we visited the Southampton Society. It has good stores and a live educational com mittee. This was the second time in ten years that American Co-operators had called at the office of the society. Some years ago two Americans had called who were organizing "co-opera tive" stores in the United States, un der a plan whereby the profits of the business went to the two organizers. This is the far famed "American me thod." It was most gratifying to find that in England the work of The Co-opera tive League had made the British Co-operators acquainted with the American Movement. The British leaders have a pretty clear idea of our problems, our accomplishments and our deficiencies; and they stand ready to give us every assistance in their power. CATHOLICS AND THE CO-OPERATIVE MOVEMENT By R. A. McGOWAN National Catholic Welfare Council, Washington, D. C. The Co-operative Movement is di vided in continental Europe, and the chief division is between Catholic and non-Catholic associations and federa tions. This is true also of labor un ions and even of political parties. Re gardless of opinions about the reasons offered for such a division abroad, it is agreed on all sides in the United States that it would be a calamity for any such situation to arise here. Nei ther the Co-operative Movement nor the labor union movement is divided on religious grounds and it is to be hoped that no such division becomes necessary. The place of the Catholic Co-operator in the United States is in the existing organizations, working as best he can to make them success ful, and trying as best he can to get others to join the Movement. It would be a mistake, however, to think that there are not good reasons for the establishment of separate CO-OPERATION 45 Catholic co-operative societies and federations in continental Europe. Thus far from the scene it is hard for us to grasp the reasons and equally hard, at times, to see their import ance. But the reasons stand and are of such weight as to compel adher ence among Catholics in several of the continental countries. One reason of grave importance is that many of the co-operative socie ties of Europe have been started or are used as adjuncts of the socialist parties, and are employed for social ist propaganda. Since Catholics are opposed to Socialism, they have been compelled to start co-operative socie ties of their own if they wished to join at all in the Co-operative Move ment. The same influence has af fected the labor union movement, and has brought about the establishment of Catholic labor unions. There is another reason which brings us farther afield. A large number of European Co-operators hold Co-operation to be strictly a con sumers' movement. They either be lieve solely in the consumers' Co-op erative Movement or, as Socialists with the Socialist desire for common ownership, they favor a subsidiary consumers' Co-operative Movement. Socialist believers in consumers' co operative societies are opposed to much of an extension of co-operative producers' societies and are certainly opposed to any emphasis being laid upon co-operative production. The Catholic Co-operator does not limit Co-operation. He favors consumers' Co-operation. He favors labor Co-op eration. He has even developed in great detail a method of establish ing co-operative production in place of capitalist production in the fac tories. When he finds government ownership necessary, he searches for methods of applying democratic man agement and a partial division of the returns of the government-owned concern among those at work in it. As a Co-operator he is an eclectic. The guilds of the Middle Ages keep haunt ing him. sumers' Co-operative Movement, he favors other sorts of Co-operation too. Where the Movement is burdened with Socialist propaganda, it is normal to expect Catholics to form their own co-operative societies and federations, even though they favor the basic principles of such existing organizations as the Rochdale con sumers' societies. There is another reason which non- Catholics sometimes find hard to un derstand. This is the importance of religious motives, and religious prin ciples of justice and brotherly love. The economics of the Middle Ages are a case in point. The guild system was permeated with religion—not merely with religious observances, but with religious principles of buying and selling and working. Interest-taking was forbidden on grounds of re ligion. The idea of the "just price" was a religious teaching. And the "just price" was based on the further religious right of a workingman to a living wage. There are religious teachings about economic relations today. The Pastoral Letter of the American Hierarchy to Catholics in this country has a section on indus trial relations. The Bishops' Pro gram of Social Reconstruction is an attempt to apply principles and rules of justice and brotherly love to in dustrial life. It therefore becomes natural for Catholics to start their own co-operative organizations and federations, especially when they are urged on by other reasons. Recognizing all this, it still is true that in the United States the only thing for Catholic Co-operators to do is to join whole-heartedly with the existing Co-operative Movement. The American Movement is not an ad junct of Socialism, nor are American co-operative societies' propaganda branches for the Socialist common wealth. The Bishop's Program of Social Reconstruction specifically rec ommends co-operative societies. Just as Catholics join the labor unions, so too they join the existing co-operative societies. And so, while he favors the con- A Catholic ought to make a good 46 CO-OPERATION Co-operator. He is of course subject to the vagaries of the times just as others, and some Catholics have an additional heritage of political and social persecution which sometimes makes co-operative action among them quite difficult. The Co-operative Movements stresses brotherhood and yet retains the strength of the indi vidual as the means of obtaining jus tice and a sound economic life. Co operative societies correspond more closely to Catholic principles than any other economic system. In joining the Co-operative Movement and in working for its success, a Catholic is working to help build up an economic system in which justice and charity will have a better chance to express themselves. THE SITUATION IN RUSSIA All reports that are available on the present condition of Co-operatives in Russia would indicate that the State has ceased to directly control or interfere with the affairs of the Co-operatives. According to Mr. A. M. Lejava, a member of the Board of "Centro- soyus" at Moscow, "Under the new economic policy freedom has been restored to the Co-operatives, and they have been entrusted by the State with the exchange of commodities be tween town and country and between the various parts of Russia. The Gov ernment at the same time decided to invite their active participation in the foreign trade of the country. Every individual at present is free to become or not to become a member of a co operative society. The conditions of membership, shareholding, etc., are fixed by the societies autonomously. The fact is, however, that practically all those who were brought into the societies under the compulsory decree now prefer to remain in the societies." The State Decree of April 7, 1921, authorized the Co-operatives to freely exchange goods, to buy up agricultur al and manufactured products for purposes of exchange. In that decree the State expressly reserved the right to appoint its own representatives on the board of consumers' societies, such representatives to have rights equal to those of the members elected by the societies. Mr. Lejava states, that: "In practice, however, the Gov ernment is not availing itself even of this limited right. There are no Gov ernment nominees on the Board of Centrosoyus, the whole of which is freely elected." The industries and enterprises formerly controlled by the Co-opera tives have been returned to them by the Government, which has also leased many enterprises formerly privately owned, to the Co-operatives. The Government prefers to grant con cessions or leases to the Co-opera tives, rather than to private firms. Co-operatives are permitted the un restricted use of their own funds, and of those granted them by the Gov ernment. State subsidies have been given to needy societies. The only restriction is that they are obliged to report the expenditure of the funds. Co-operatives are free to finance themselves through the sale of shares. It is estimated that Centrosoyus distributed amongst the population during 1921 goods to the value of $150,960,000, at the present rate of exchange. The greatest amount of freedom is enjoyed by the "Kustars," or Russian peasant co-operative industries. In short, the Government has abandoned its policy of national own ership and rigid control of the in dustries, and is now relying upon the voluntary efforts of consumers, through their co-operative societies, to conduct the industries and to carry on domestic and foreign ex change. CO-OPERATION 47 PRACTICAL PROBLEMS ADVICE ,ON STORE MANAGE MENT The Successful Manager A good store manager must be able to do any part of the necessary store work. He should be agreeable to others and a good salesman. He must be honest, energetic, sincere and ef ficient. A knowledge of the business from the ground up is needed for best results. It is often found, how ever, that an earnest Co-operator pos sessing all other needed qualities soon acquires experience by hard work and study, under a competent, successful co-operative store manager which fits him for a position in charge of a store. An efficient manager should do the following: 1. Systematize his work, and see that it is fairly divided among the employees, and that all are kept busy, but not rushed. 2. Buy sparingly and turn stock often. If he finds he has an over stock, he must lose no time in putting on special sales. 3. Know the quality of the goods, and not hesitate when asked to recom mend an article; but he should be hon est in his replies. 4. Not do routine work during rush hours. He should be where the cus tomers can see him. 5. Watch unceasingly for leaks. What a Manager should be: Prompt, cautious, bold, enthusi astic, determined. He should take orders from the di rectors at the Board meeting. In the store, the manager should be the boss, and officers of the society should not dictate to him or to the clerks. This should be understood from the be ginning. The Kind of Clerks that Help Co-operation It is unwise to have too many clerks. If there is not enough work to keep them busy they are apt to lose inter est. On the other hand clerks are human and should not be expected to work on a tension, or when they are ill. In starting a new clerk at work, give him average work, not the hard est, disagreeable jobs; and help him all you can. Cheap help is in the long run expensive. Do not show favorit ism, but have a general policy for all. Do not hire relatives. Be cautious about hiring relatives of officers of the society. Praise your clerks for all they do well. Pass easily over faults, for while criticism is necessary, habitual fault-finding makes a manager a nag, and good work can never be expected. Do not eternally watch or show sus picion. It is better to be frank. Be sensible in giving instruction. Give concrete examples of what a clerk is expected to do. Do not treat clerks as private busi ness treats them. Give them respon sibility. Put one in charge of fruit and vegetable department, one in complete charge of store-room, etc., and let them make this work effective. Insist on neatness. One slovenly clerk can wreck a store. See that clerks utilize slack hours of the day by filling and straightening shelves, doing up loose sugar, tea, flour, etc., in packages, tidying up the store, etc. Pay wages fully as high as private stores pay. Do not exceed legal limitation on number of hours per week for women workers. One good, efficient woman in a co-operative store is an asset. Train her to be friendly to the women, and to attend the meetings of the Women's Guild. Do not hire a new clerk until you know his past record. There should be formed an employ ees' association. Clerks should be urged to join the union. They should know the conditions and aims of the store, and be expected to understand the co-operative principles thor oughly. They should be required to read certain co-operative literature, and attend educational meetings of the society. 48 CO-OPERATION CO-OPERATION 49 OVERSTOCKING The following excellent advice on "overstocking" is from the Nebraska Union Farmer, of January 22: Overstocking with goods has been one of the factors in causing many of our co operative stores, and elevator companies engaged in merchandising, to be short of operating capital. The other day a mem ber of the Farmers Union told us of the financial difficulties of the farmers' co-op erative store in their little village of a few score souls. A recent inventory showed a grocery stock amounting to $18,000! This farmer said he was curious to know what size of stock a grocery store should carry. Having occasion to visit the capital city, he inquired of a Lincoln grocer who does a business of about $100,000 a year what his average inventory was. The gro cer replied that he did not allow his stock to go above $8,000. Our friend was as tounded to learn that their co-operative store was carrying a stock of groceries more than twice as large as a city grocery serving several times as many patrons. A few days afterward we asked the manager of what is perhaps the most pros perous Farmers' Union store in Nebraska what size of grocery stock they carried, and he replied that they kept it down to $5,000 and had everything they needed. Our Farmers Union auditors tell us that some of our stores hold their grocery stock down to $3,000. Of course, overstocking is not the only cause of capital shortage. Some of our associations did not have sufficient capital to begin with, or invested too much in buildings and equipment. Not a few have extended too much credit. But in many cases shortage of capital is due to loading up too heavily with goods. THE FATE OF READERS OF "CO-OPERATION" As representatives of the The League go about over the country there is one fact that they discover everywhere. The people who rise to the important positions in the Co-op- perative Movement are the readers of the magazine CO-OPERATION. When a person goes into a town and looks about, he finds that certain people regularly read this magazine. In the course of time if one visits the same town again he will find that the people who are guiding and furnishing the inspiration and sound leadership for the co-operative society are the read ers of CO-OPERATION, and these same people are the ones who make the best material for directors and man agers. We are calling attention to this because we have recently had brought to our attention several in stances in which the best and most successful store managers were found among men with this cultural co-op erative background. TRAINING MANAGERS The Executive Board of the League insists that the League's System of Store Accounting be used in every co operative store. We discover that it not only protects the members and the manager but it trains a Control Committee in store management. We have on record multiplying instances in which members of the Control Committee have been able to step in on a moment's notice and take the place of the manager when something happened to him. The latest testi mony to this value of the Accounting System is from Tucumcari, Texas: The Board decided to allow me to train a member of the Control Committee to take my place as manager. He has been on this committee since my arrival here last August, and the experience gained in that work has been so valuable to him that the rest is in a measure easy. A. W. WARINNER, Manager. Tucumacari Merc. Co-op. Co. Mr. Warinner has become an en thusiastic advocate of the Accounting System. He saved the Tucumari So ciety store with its aid, and now it provides a manager. SEEDS FOR RUSSIA A member of The League, Mrs. Mary Mardfin, is now in Russia for the purpose of distributing seeds in the farming districts that are suffer ing not only from a lack of food, but from the want of seeds to plant for the next harvest. Those of our read ers who are in a position to help are urged to forward free seeds for dis tribution by Mrs. Mardfin. Seeds and communications should be ad dressed to her at Sergei Victorovitch, Terskoy, Ryazan District, Russia; or to The League. NEWS AND COMMENT CREAMERY SETS STANDARDS The Franklin Co-operative Cream ery Association of Minneapolis has just issued a Year Book containing a remarkable financial report. Though the co-operative creamery began busi ness late in March, 1921, their gross sales of milk, butter, cream and other dairy products for nine months amounted to $844,063. The monthly sales are now $110,000. The net surplus-saving for the nine months of operation was $37,539. It should be remembered that hundreds of thousands of dollars in addition were saved to the consumers of Min neapolis, for the co-operative dairy is setting a severe pace for the private dealers, who have been forced to re duce the price of milk three cents a quart. A cent on every quart of milk has amounted, during the year, to over half a million dollars for the consumers of that city. Since the co-operative began doing business the quality of dairy products sold in Minneapolis has improved con siderably. Here is the milk report of the Minneapolis Health Depart ment: Average bacteria Jan.-June, 1920, 56,674. Average bacteria Jan.-June, 1921, 21,560 Average per cent butter fat Jan.- June, 1920, 3.58. Average per cent butter fat Jan.- June, 1921, 3.69. This means less water, more nour ishment, and less dirt. The import ance to the people of this gain is in calculable. It means less sickness. The building of the co-operative is completely paid for; small balances remain unpaid on the machinery and equipment. Seventy routes are now operated, as against eighteen when the dairy was opened for business. In spite of the general wage cuts in the private dairies in Minneapolis, no re duction has been made in the pay of the workers in the co-operative, and none is contemplated. Enthusiastic and constant educa tional work is carried on by the mem bers. This is not a producer's enter prise run for the profit of the milk distributors; but it is a consumers' dairy run not for profit but for the service of all the citizens who choose to become members. RE-ORGANIZATION OF UNITED CO-OPERATIVE SOCIETY In the fall of 1919 a group of inde pendent Finnish societies, stores, bakeries and consumers milk distri buting societies in Eastern Massa chusetts amalgamated into a central organization—The United Co-opera tive Society. Each society lost its identity and became a branch of the centralized plan. A few new branches were established. They pooled their capital and their management. All the buying of goods, the bookkeeping and the financing was done by the central office at Boston. It also em ployed the managers, bought and sold property and equipment as well as carried on the education and propa ganda connected with all the societies. After two years, however, in the spring of 1921, at the annual meet ing the society voted to reorganize. The centralized plan of chain stores was given up and each society again became independent. This change of program was not due to any financial difficulties of the organization. The amount of capital originally subscribed by the societies was $56,720. At the time of reor ganization the capitalization was $84,- 256. Its assets were $247,275. Its liabilities were $163,018. So it can be seen clearly that reorganization was not necessitated because of in efficiency. The members simply vot ed to return to the former method of local autonomy and independent man agement because they felt that by so doing the members could and would more fully and democratically take their part in each society's affairs. The separate societies agreed to buy goods together in the future until 50 CO-OPERATION a real New England Wholesale feder ation should be formed. The method of distribution of the centralized capital was to return to each local society the amount of capi tal subscribed by the members of that locality, as new capital for their in dependent store. The new society is sued certificates to their members in place of the original certificates of share capital subscribed to the United Co-operative Society. $1,800 sub scribed as capital by members of those localities in which societies no longer exist still remains in the treasury undistributed. Thus ends another chapter in the attempt to organize and operate co operative chain stores. In the United States this experi ment of chain store co-operatives both fictitious and bona fide has now been given a pretty thorough trial. If any group could have succeeded with the method of centralization it would have been the Finnish Co- operators. They had a competent manager and an honest organization. Except for political differences they are united and harmonious. Adolph Wirkiela, who was in charge of the technical administra tion of the United Co-operative So ciety, the accounting and bookkeep ing, in commenting on the situation states that: "At the meeting of the Society it was not consciously realized by all the members that reorganization was necessary because of the need of local autonomy, but they did understand that separation was necessary. Dis satisfaction in the running of the So ciety was the chief cause for such a thought. The logical consequence of trying to realize an impossibility was not theoretically understood. It was a fact that under centralization the members of the branches were less interested in the Movement than they were as members of local so cieties, and the stores suffered to an extent to which centralized efficiency could not compensate. Nevertheless certain factors did not want to re cognize this fact." Waldemar Niemela the manager comments as follows: "As machinery for distribution of food supplies the chain stores plan, operating in a limited district, is much more efficient than the inde pendent stores, if it is well organized, financed and supported." CONVENTION OF THE FARMERS' UNION OF NEBRASKA Over 600 delegates met at Omaha on January 10th, llth and 12th, 1922, at the Ninth Annual Convention of the Farmers' Union. The crowded sessions were filled with spirited dis cussions and sharp conflict of opinion at times. However, the general out come was most satisfactory and car ried with it a final feeling of good will and a pledge for further loyal Co-operation in the future. Most of the resolutions naturally had to do with the conduct of the Farmers' Union marketing associa tions. The election of officers was a feature of the program. C. J. Osborn was elected president. The important resolution were those authorizing the organization of a Farmers' Union loan company, a Farmers' Union hail in surance company, and additional Farmers' Union creameries. Of particular interest to Co-opera tors was the discussion centering around the year's operation of The Farmers' Union State Exchange at Omaha. Frank Meyers, its manager, reported that the State Exchange had been organized by the Union on No vember 28th, 1918. In 1919 it sold $400,000 worth of stock under the jurisdiction of the State Union Board. Mr. Meyers reported that the Ex change had been operated with the best interest of the Farmers' Union membership in mind. In 1918 and 1919 the Exchange had made money. Farmers' products were sold at peak prices and profits were skimmed off without difficulty. In 1920, however, when the slump began, the Exchange closed a year with with a loss of $109,000. In December, 1921, the CO-OPERATION 51 loss for that year was $182,053. Farmers were not buying; and, de spite all efforts to reduce stock and overhead, the best /fealepmen could not, without loss, dispose of the large stock which the Exchange had on hand. The report showed that the present worth of the Exchange is $400,000. A vote was taken which placed the further administration of the financial difficulties in the hands of a committee composed of the boards of the State Exchange and the State Union, with power to act. The State Union occupies a building, the lease of which costs $3,000 a month. The closing sessions expressed the feeling that if the members through out the state gave their loyal patron age, the officers had full faith in the satisfactory outcome of the present crisis. The Farmers' Union is carrying on for the farmers the same educational work that The Co-operative League is performing for the consumers in general. In Nebraska, as in some twenty other states, the Farmers' Union is the best hope of Co-operation among the rural population. SOME ILLINOIS REPORTS The past year was the most suc cessful period in the history of the Bloomington Co-operative Society. Even though Bloomington was hit hard by the industrial depression, and though many promoters of the fake "Co-operative Society of America" tried to muddy the clear waters of Co operation, the energetic Co-operators made steady progress. A business of $161,000 was done during 1921, which is larger than ever before. It was decided by the membership to distribute 4 per cent savings-returns and a considerable sum remains to be placed in the reserve fund. The Bloomington Co-operative Society is affiliated with The League and with the Central States Co-operative Wholesale Society. The Villa Grove Co-operative So ciety held its thirteenth quarterly meeting of stockholders January 18," 1921. There were 374 tickets given out at the door to men, women and children. Every one entering being given a ticket. Ninety memberships were represented at this meeting. Certain tickets draw prizes. The hold ers of the winning tickets drew prizes as follows: a ham, 25 Ib. sugar, 25 Ib. flour, quart bottle grape juice, % gallon bottle of cider, 2 cans pork and beans, % Ib. tin of tobacco and a pipe. The last four prizes were given by of ficers of the Society. Officers were elected. Dr. J. H. Greene gave an interesting address on the control of industry by the work ers. An, orchestra furnished music. A program of vocal and instrumental music and selected reading was pro vided. After the meeting and enter tainment a lunch was served consist ing of baked ham, roast pork, roast beef, boiled ham, pickles, doughnuts, cakes and coffee. THE WORKINGMAN'S COMPANY OF CLEVELAND The Workingmen's Co-operative Company of Cleveland, Ohio, which operates six stores, has a fine record to point to for 1921. The sales for the year amounted to almost a quarter of a million dollars—to be ex act, $234,620. Of this sum, the net surplus-savings came to $6,383, which was distributed to the member ship in the form of savings-returns of 3J/2 per cent, on purchases, and 3 per cent, interest on share capital. The society has a good reserve fund. The membership of one thousand, consists of Czecho-Slovak workers. The educational side of Co-operation is not neglected. On January 29th a general meeting was held at which five hundred people were present. Lantern slides were shown, and there were talks on the Co-operative Move ment. 52 CO-OPERATION THE PRODUCERS' AND CONSUM ERS' BANK OF PHILADELPHIA The Producers' and Consumers' Bank of Philadelphia opened its doors for business on the first of February, organized under a deed of trust. It is called "a co-operative bank"; but to call any deed of trust "co-oper ative" is misleading, for a deed of trust violates fundamental co-opera tive principles. In the first place, shares vote instead of men. One vote for each member, irrespective of the number of shares held, is the only co-operative method. Secondly, it al lows proxy voting, which is not al lowed in the administration of truly co-operative societies. Thirdly, there is no specific use of the surplus indi cated in the by-laws. Co-operative by-laws, as well as state banking laws, definitely state the use that must be made of the surplus. Fourthly, un der the deed of trust all power is placed in the hands of the trustees. This is neither democratic, sound, nor co-operative. The deed of trust has been made use of by spurious co operative organization, such as the "Co-operative Society of America" but it has never been used by a true co-operative organization. For over a year, The Co-operative League has advised the trustees against the deed of trust method and has suggested safer forms of organi zation. Dr. Walter McCaleb, of the Engineers' Bank of Cleveland, and Dr. Frederic C. Howe have taken the same interest, and have advised against the deed of trust. These two experts and The League advised that the bank be incorporated as a state bank or trust company under the banking laws. On February 8th, The League learned the good news that the Sec retary of the Commonwealth of Penn sylvania had received the application for the incorporation of the Producers and Consumers Bank as a trust com pany. This is a well tested method of organization and puts the bank under the supervision of the state banking laws. Although the bank, even under the Pennsylvania banking laws, can not be fully co-operative, it may become a Labor Bank, serving the working people and controlled by them. We earnestly hope that the reor ganization from a deed of trust to a trust company bank will be speedily accomplished and that the working people will realize their responsibility, will exercise their control over this bank, will employ proper banking ex perts to run it efficiently, and will make this Labor, Bank a great suc cess. CONVENTION OF NORTHERN STATES A call has been sent out by the Co-operative Central Exchange of Superior, Wisconsin, and the Union Consumers' Society of Duluth, Min nesota, to all of the societies of north ern Minnesota, Wisconsin and Michi gan to send delegates to a conference of co-operative societies to be held in the Co-operative Central Exchange Building, at Superior, on March 18, at 10 A. M. The object of the con ference is to consider: (1) The formation of a district league. (2) The best methods of spreading knowledge of Co-operation and carry ing on education within the district. (3) The question of introducing a uniform system of accounting among the societies of the district. (4) The question of training em ployees for co-operative stores. (5) The possibilities of joint buy ing among the societies of the pro posed district. It is requested that societies send ing delegates to the conference should notify Mr. John Schottes, Secretary, Union Consumers' Co-operative So ciety, 1911 W. Superior St., Duluth, Minnesota. The Co-operative League advises the societies to be represented at this conference. A large attendance and a successful meeting should be ex pected. CO-OPERATION 53 OUR CAFETERIA INVADES WALL STREET The Wall Street financial district was invaded at the beginning of the new year by the third branch of "Our Co-operative Cafeteria," which op ened at Greenwich and Thames streets, New York City. Judging by the fact that the new branch now serves about 600 people at lunch every day, and about 75 every eve ning, the success of this invasion of the sacred precincts of capital is as sured. The following figures show the receipts by weeks since this branch was opened: First week ........ .$ 832 Second week ....... 1,577 Third week ........ 2,178 Fourth week ....... 2,702 Fifth week ........ 3,221 Though there has been no con certed drive for membership thirty- one applications have been received. A considerable quantity of literature on Co-operation is given out at the cashier's desk every day. CO-OPERATIVE ELECTRICITY IN SWITZERLAND AND RUSSIA Switzerland has a number of co operative societies which supply their members with electricity. They put a wheel in a stream that comes plung ing down from the mountains. The wheel runs a dynamo. Lines are car ried to the members' houses. In this way, at a very small expense, the melting snows of the Alps are con verted by co-operative societies into light and power to run the sewing machine and the churn, but best of all, they are teaching people how to co-operate. Some of these villages have jumped from the candle to elec tric light without passing through the stage of kerosene lamp and the gas light. Now comes the word from Russia that the Barovich-Valdai Co-opera tive Society, which covers a large dis trict, is installing electric light in 250 villages out of 480 villages in the dis trict. The people can do things for themselves. AT THE VATICAN In Italy, a unique co-operative so ciety is the one that has recently been organized in the Vatican in Rome, by the dignitaries of the Cath olic Church and the Vatican officials. It has generally been believed that the Cardinals and other dignitaries that constitute the administration of the Catholic Church in Rome enjoyed salaries that put them beyond the danger line separating them from want. But the depreciation of the currency and the high prices seri ously effect everybody's purchasing power. To meet this condition, the Church executives and their staffs there have formed a co-operative consumers' society through which provisions and other necessities are purchased at a considerable saving. FINLAND KEEPS ON THE MOVE The annual report made by the Finnish Co-operative Wholesale Society, (S. O. K.) for 1920 shows progress in spite of the split in the Finnish Movement and the difficulties laid in the way of Co-operative activity by the Government. The S. O. K. is the wholesale federation of the "neutral" co-operative societies. There are now 500 societies connected with the S. O. K., representing 1,640 stores and a membership of 181,200. During 1920 the number of stores operated had in creased by 212, and 8,200 members had been won to the neutral co-operatives. The sales of the S. K. O. in 1920 amounted to 324,000,000 Finnish marks, which represented an increase o_f 57 per cent over the business of the previous year. Owing to the inability to procure sufficient goods to meet the wants of the local stores, the wholesale was able to furnish only 31 per cent of the goods sold by affiliated co operatives. Almost every imaginable variety of in dustrial activity is carried on by the S. O. K. It operates a factory for making over alls and underclothing, a fruit and spice packing house, a coffee roasting plant and chicory factory, a shop where bicycles, motorcycles, automobiles and typewriters are assembled and repaired, a hosiery fac tory, biscuit bakery, macaroni factory, brushworks, berry conserving works, berry gardens, match factory, flour mill, bag and envelope mill, confectionery factory, saw mill, brickworks, and other industrial estab lishments. It owns its own fleet of vessels. Recently the S. K. O. branched out into a savings bank business, which is making headway. It also maintains an infant school and supports a fire department. 54 CO-OPERATION CORRESPONDENCE AMERICAN LABOR LEADER VISITS ITALIAN CO-OPERA TIVES I was powerfully impressed by the co operatives in Italy. I came to Reggio Emi lia to witness the Congress of the Right Wing of the Socialist Party held at the city hall of the town, Reggio Emilia having a socialist administration. The red flag was conspicious on the outside of the building and on the platform in the assembly hall. Among the delegates to that conference was Signora Argentina Altobelli, the leader of the Socialist Argicultural Co-operatives in Italy. To one familiar with the back wardness of the Italian women, the fact of an old lady being the leader of nearly a million socialist peasant Co-operators was very striking. Madame Altobelli is a re markable personality. A woman probably in the sixties, of medium height, with a very vivid and sympathetic face. She fol lowed the proceedings with keen interest and had definite opinions on all subjects that came before the congress. She was against an immediate revolution in Italy, basing her opposition principally upon the fact that the socialist peasant co-operative organization had no mroe than over 800,- 000 members. On the day after the conference Eman- uelo Modigliani, at that time chairman of the socialist delegation in the Italian Par liament, Gino Baldesi, one of the secre taries of the General Confederation of La bor, and a few local comrades, took me to a socialist peasant co-operative in the neighborhood. I was told that there were quite a number of them, but that was only one of its kind that I had an opportunity to see. There are 600 peasants attached to that co-operative. A number of years ago they bought the estate from a noble man for whom they were working. By this time the estate is all or neraly all paid up. Each member of the co-operative brings all of his products into the general storehouse. The goods then become the property of the co-operative, which markets them. The co-operative also does all th ebuying for its members so that all the necessaries of life are bought at the lowest wholesale price. The members are charged on the books of the co-operative with everything furnished them by the co-operative and credited with everything furnished by them to the co-operative. Out of the proceeds all the expenses are covered, improvements made, and contributions to various labor movement activities. A part also goes to the members. I saw a number of American tractors bought by the co-operative, which the members, if left to themselves, would never have been able to buy. The Government has entrusted that particular co-operative with the care of a number of war orphans, paying the institution a certain amount of money for each child. The managers of the institution showed me the bulky books containing records of the business done. The amounts ran very high. I have not the figures with me but I remember that they impressed me very strongly. I left the institution full of en thusiasm for the work done by the Italian socialist peasant -co-operatives in Italy, like the enthusiasm I felt for the work of the Italian labor movement generally. JOSEPH SCHLOSSBERG. A HARD QUESTION FOR DES MOINES The Parker bunch of Chicago ("Co-op erative Society of America") have sold in this city close to $50,000 worth of their stock in a worthless institution. The thought naturally occurs to us, if the people will put this amount of money in a thing that is bound to fail why will they not put money in our society which has a record of four and a half years of successful op eration in the interest of the people. Our board are honest men who have the Co operative Movement at heart. We know that if we could sell $50,000 worth of stock we could show results with the money. Des Moines, Iowa. A. R. MORRIS. WILDROSE, NORTH DAKOTA FARMERS' STORE Since our store has been re-organized and run eight months it has sold $30,000 worth of goods, and our inventory shows a trifle better than 20 per cent, profit. The manager's salary, rent, and one extra clerk amounting to about $2,000 must be de ducted from the profit. We have four towns on this branch railroad having farm ers' stores. W. S. BECKER. Wildrose, N. Dak. "CO-OPERATION" A REAL BOON Every new number of "Co-operation" is a real boon. I look at all the Co-operative periodicals now and find none which so interestingly relates the Co-operative Move ment to other movements in the economic field as does "Co-operation." As the rea soning is simple so the information is def inite. JOHN COLLIER. Mill Valley, California. CO-OPERATION PUBLICATIONS OF THE Co-operative League of America HISTORICAL Per Copy Per 100 3. Story of Co-operation .................................................^ .10 $6.00 7. British Co-operative Movement ........................................ .10 6.00 10. A Baker and What He Baked (Belgian Movement)...................... .05 38. Co-operative Consumers' Movement in the United States............... .05 4.00 TECHNICAL 4. How to Start and Run a Rochdale Co-operative Society.................. .10 4.00 5. System of Store Records and Accounts.. j............................. .50 6. A Model Constitution and By-Laws for a Co-operative Society........... .05 2.50 8. Co-operative Education. Duties of Educational Committee Defined..... .10 9. How to Start a Co-operative Wholesale................................ .10 27. Why Co-operative Stores Fail .............. .......................... .02 1.00 2. Co-operative Store Management ...................................... .10 14. How to Start and Run a Women's Guild................................ .05 MISCELLANEOUS 46. Producers' Co-operative Industries ................................... .10 11. Control of Industry by the People Through the Co-operative Movement... .10 12. Credit Union and Co-operative Store.................................. .05 1.75 34. Co-operative Movement (Yiddish) ..................................... .02 1.25 43. Co-operative Housing ................................................. .10 45. Harmonizing Co-operative Producers and Consumers.................... .03 ONE-PAGE LEAFLETS (One cent each; 50 cents per 100; $2.50 per 500; $4 per 1,000) (1) Principles and Aims of the Co-operative League of America; (17) Do You Know Why You Should Be a Co-operator; (20) Why Loyalty Is Necessary; (21) Cost and Crime of Credit; (22) A Real Co-operator; (25) Resolutions Adopted by A. F. of L.; (26) Factory Workers, Co-operate!; (28) Do You Know About Co-operation in Europe?; (40) Hava You a Committee on Education and Recreation?; (44) What Is the Co-operativ« Movement? Miscellaneous Educational Leaflets. MONTHLY PUBLICATIONS CO-OPERATION—(In bundle lots, $7.50 per hundred). Subscription, per year......... .$1.00 HOME CO-OPERATOR, 4 pages ................................................ $1 per 100 INTERNATIONAL CO-OPERATIVE BULLETIN (Pub. by The I. C. A.)...... .per year, $1.50 BOOKS The following books are recommended as containing the best discussions of the modern Co-operative Movement. They made be ordered through The League: Bubnoff, J. B.: The Co-operative Movement in Russia, 1917.......................... .$1.25 Faber, Harald: Co-operation in Danish Agriculture, 1918.............................. 2.75 Flanagan, J. A.: Wholesale Co-operation in Scotland, 1920............................ 2.00 Gebhard, Hannes: Co-operation in Finland, 1916...................................... 2.00 Gide, C.: Consumers' Co-operative Societies, 1921...................................... 2.50 Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, $2.00; paper bound ........................................................................... .60 History of Co-operation in the United States. Vol VI, John Hopkins University Studies, 1888 ...............................................................................4.00 Holyoake, George Jacob: The History of Co-operation, 1908............................ 2.00 Holyoake, George Jacob: The History of the Rochdale Pioneers........................ 2.00 Howe, Fred C.: Denmark, a Co-operative Commonwealth, 1921.......................... 2.50 Maxwell, Wm.: History of Co-operation in Scotland, 1910.............................. 2.00 Nicholson, Isa: Our Story ............................................................ .25 Powell, G. Harold: Co-operation in Agriculture. Macmillan ........................... 1.50 Redfern, Percy: The Story of the C. W. S............................................. 2.00 Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918....................... 2.50 Smith-Gordon: Co-operation in Many Lands, 1920...................................... 2.50 Sonnichsen, Albert: Consumers' Co-operation, 1919. Cloth bound, $1.75; paper bound... .75 Stolinsky, A.: The Co-operative Movement. In Yiddish................................ 1.00 Webb, B. and S.: The Consumers' Co-operative Movement, 1921........................ 5.00 Webb, Catherine: Industrial Co-operation, 1917 ...................................... 1.50 Woolf, Leonard: Co-operation and the Future of Industry............................. 2.00 Woolf, L.: Socialism and Co-operation................................................ 2.00 "The Co-operative Consumer" and "Co-operation," III (1917), VI (1920), VII (1921).... 1.75 Transactions of Second American Co-operative Convention, 1920....................... 1.00 (Ten cents postage should be added for books which cost more than $2.00, and five cents for the smaller books.) THE CO-OPERATIVE LEAGUE OF AMERICA (Member of The International Co-operative Allinace) Executive Office: 2 West 13th Street, New York An educational organization for teaching the history, principles, methods and aims of the Co-operative Movement and for the promotion of Co-operation in the United States. Join The League and thus help promote the educational work of the Co-opera tive Movement. Individual Membership, 1.00 a year. Subscribe for CO-OPERATION Formerly the "Co-operative Consumer." The Monthly Magazine of The league. Keep in touch with the Movement, $1.00 a year. This Journal Is Not Published for Front Co-operative Central Exchange Wholesale Grocers and Jobbers, Bakers We supply goods to Co-operative Societies ONLY We are owned and controlled by Co-operative Societies. We are organized to enable Co-operative Societies to do collectively what they cannot do indi vidually. Co-operative Central Exchange Offices, Warehouses and Plant: Winter Street and Ogden Ave., SUPERIOR, WIS. Co-operators' Ltd. Mutual Fire Insurance Co. is now writing Insurance in State of Wisconsin. The Canadian Co-operator Brantford, Ontario, Canada The organ of the Canadian Co-opera tive Movement, owned by and con ducted under the auspices of The Co-operative Union of Canada. Published monthly; 75c per annum MOVING PICTURES and Stereopticon Lectures may be rented from CO-OPERATIVE LEAGUE OV AMERICA 2 West 13th St., New York City "Some Examples Of English Co-operation." Moving pictures of factory processes (two reels) ................................$5.00 'Co-operation in the United States." With E3 Stereopticon views ........... .$3.00 3. "The Co-operative Movement in Russsia." With 36 colored Stereopticon views... .$3.00 1. S. Co-operation in Scotland In no part of the world is Co-operation further developed, or more successfully practised than in Scotland. If you wish to keep in touch, read "The Scottish Co-operator" (Published Weekly) Subscription: Tear 12 sh.: half-year, 6 sh. Address, 119 Paisley Road, Glasgow, Scotland THE PRODUCER Issued Monthly Price 3d. If you want to keep in touch with business, organization, administra tive affairs, and problems of the British Co-operative Movement, read THE PRODUCER. Published by Co-operative Wholesale Society, Inc. 1 Balloon Street, Manchester. Post free 4 sh. 6d. a year. The Trade and Technical Organ of British Co-operation. STORE EQUIPMENT FOR SALE The Co-operative League is in touch with several societies which de sire to dispose of surplus equipment, including cash registers, computing scales, adding machine, National ac count file, and mimeograph. Any store needing such material may be able to secure a bargain. The League will be glad to forward any commu nications to the owners of this equip ment. A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in vol untary organization, produce and distribute for their own use the things they need Published monthly by the Co-operative League, 2 West Thirteenth Street, New York City. J. P, Warbasse, Editor. Price, $1.00 a year. Entered as second class matter, December 19, 1917, at the Post Office at New York, N. Y., under ,the Act of-March 3, 1879. Vol. VIII, No. 4 APRIL, 1922 10 Cents VITAL ISSUES HOW CO-OPERATION CAN WIN Five million of the population of Great Britain possess eleven billion pounds of the capital of the coun try. This represents all of the na tional wealth, except about 640,- 000,000 pounds, possessed by the rest of the people, who number 38,- 000,000. The latter are the work ers, the former are from the so- called upper and middle classes. The annual income of the 5,000,000 capitalists is given as 830,000,000 pounds. If the total income were from investments it would mean a yield of 8 per cent annually. Enough of this income of the wealthy and middle classes is earned by their own labor to reduce the income from investments to 6 per cent. This result is arrived at by assuming that 2,000,000 of the 5,000,000 well-to- do are at work, and that their earn ings amount to 100 pounds a year. If it were assumed that their earned income were 150 pounds, the income from investments would be 5 per cent. If they earn 200 pounds a year they would have 4 per cent income from property. These fig ures are from Honey's "Riches and Poverty." The low salaries earned by people of the upper and middle classes is corroborated by Mr. E. O. Greening. It is a well-known fact that before the war only a minority of the joint stock companies in Bri tain paid dividends of 5 per cent or over. The average income from in vestments was around 4 per cent. The year 1920 was a period of bad times, but during that year the 1,379 consumers' societies of the British Union did a business of 254,- 000,000 pounds, and used share and loan capital of 86,553,168 pounds. The net surplus, after paying inter est on loans, salaries and all other expenses, was 25,450,000 pounds. This is a net return of 30 per cent on the capital invested. The return varies from 30 to 40 per cent. We have societies in the United States, and there are undoubtedly British societies which show 50 to 100 per cent returns on the invested capital. This means that having made his investment, the member of the co operative society has only to pat ronize his society, where he buys at fully as good an advantage as in private business, and his capital earns this large return. The Co-operative Movement thus has the power to do for labor six times more than what capitalistic investment can do for the capitalist. Let us now turn to the 640,000,000 pounds of capital owned by the working class. If all the working people invested this co-operatively, on the same basis of return as their present investment of 786,000,000 56 CO-OPERATION pounds, in five years every working class family would be in the same position of competence as the mid dle and upper classes. In other words, each of the working class families would have the same amount of wealth as each of the capitalist families. This, of course, is wholly a theo retical calculation, for there are many intercurrent possibilities. And, moreover, it takes a long time to educate the rest of the working people as to what is their best in terest. These figures are presented to show the possibilities of Co-oper ation from the simple investment standpoint. In the United States all the money in the country passes through the hands of the workers three times a year; they earn it and spend it all every four months. It is the spend ing of this money with profit-mak ing business that produces the cap ital that makes it possible for the non-workers to live without per forming service. It is to gain this profit from the consumers that most of the business of the world is run. Should the consumers carry on their own business and keep the profit for themselves, they could accumulate the profit for expansion of industry which now goes to the capitalist. All they need to do is to organize the co-operative sluiceway which shunts off the golden current from the pockets of private traders into their own pockets. The consumer occupies the strategic position, and he can win when he organizes his spending power. NOTHING FAILS LIKE SUCCESS We publish this month some final information on some organizations that have been called "co-opera tive." This is necessary, because many people thought they were co operative. And, because people have held this delusion, it is neces sary to give information concerning them in a co-operative magazine. Many thousands of people have sub scribed to these things in good faith. The working people have lost some $18,000,000 by them in the past three years. These facts cannot be ignored. We 'have to publish them, as much as we dislike to use our space for this purpose. It is not pleasant to harp upon this subject, but it must be done. The failure of these enterprises was inevitable, as we have always shown. Had they kept on, and con tinued to take money from the peo ple, such "success" would have in flicted continuous harm upon the Co-operative Movement, although the failure of each, one by one, has been a hard blow to the working people who trustingly invested their savings. Co-operation in the United States continues to succeed and to win its victories. The final failure of these false co-operatives is among the successes of real Co operation. BANKS LEND CREDIT Lending the people's credit is what the banking system does with the people's money. The high financiers talk much of the risks of the banking business; they assert that the stock holders, the people who finance the bank, should get the profits. There is no doubt that they do get the pro fits, but is all of this talk abut the stockholders financing the banks cor rect? At the present time in the banks of the United States for every $1.00 that the stockholders have in vested in our banks the depositors have invested $15.00. The share holders have invested in our 31,618 banks a total in round figures of $2,- 500,000,000; but the depositors have in these same banks $36,700,000,000. Now, the money these banks do business on and out of which they make their profits is $15.00 of the people's money to every $1.00 of the stockholders' money, yet the stock holders are the fortunate ones who get the profits. The many lenders of this vast sum of money and the many CO-OPERATION 57 borrowers of it make possible the vast business which pours a river of pro fits into the laps of the few stockhold ers. The depositors furnish the credit, the stockholders loan it, and take the profit for themselves. The co-operative system of bank ing provides that the borrowers and the lenders are the chief factors con cerned. The figures show that they are fifteen times more of a factor than the stockholders. The co-opera tive method is simple, but above all it is just. Precisely the same prin ciple applies in banking as applies in any other business. It is possible for the people, who have credit to lend, to organize with the people who want to borrow it. They can cut out the middleman. The people can be their own bankers as well as they can be their own merchants. All that is required is the will to know how, and then to do it. RELATIVES OF DIRECTORS Co-operation can have no favor ites. Every sound society sees to it that the members are safeguarded against personal favoritism or priv ilege in any form. Many societies provide in their by-laws that the society shall not purchase gooda from a director, nor shall any di rector occupy a position in the so ciety commanding a salary. There are naturally circum stances under which exceptions must be made to this rule; but in general it is sound. The same per son cannot well be employer and employee. Employing members of the family of a director is discovered to have serious disadvantages. There have been many societies ruined because influential members of the board of directors insisted in putting their family and relatives on the pay roll. Some of these employee-relatives have been highly incompetent. In one society three incompetent clerks were members of the family of the president of the board. No society can survive this sort of administra tion. Some plain speaking in the board and then before the whole so ciety is essential in such cases. It should be done in a friendly and kindly way, but it should be done. Some societies are willing now to go so far as to put a section in their by-laws forbidding the employment of members of the families of di rectors. It may now and then pre vent the employment of a desirable worker, but on the whole it would go a long way toward preventing a serious abuse. Of course the remedy is to have the members of a society so well educated and so deeply interested that they will only elect directors who will be animated by the best good of the society. Directors who permit personal favoritism to influ ence them in making appointments of employees are not fit for the office and should be recalled as soon as possible. A director should have but one single standard of conduct —only the thing that is for the best good of the whole society. A GROWING HOST The 30,000,000 heads of families, who are organized in the Co-opera tive Movement in twenty-six coun tries, represent more than 120,000,- 000 people. This is a great and grow ing host. It brings to the suffering world the light of a new civilization. Those who give themselves to this Movement are building upon the foundations of eternity. J. P. W. 58 CO-OPERATION EUROPEAN IMPRESSIONS CO-OPERATION IN SCOTLAND By J. P. WARBASSE The British Co-operative Move ment began in Scotland. The Glas gow district is the cradle of Co-op eration. For seventy-five years be fore the Rochdale Pioneers opened their store, co-operative societies had been developing in the land of oat cakes. If one will look at the sturdy faces of the Scotch Co-operators he will see determination written large. A people who are descended from an cestors who made a living out of the unfertile soil of Scotland, who sur vived its harsh climate, and who threw off the yoke of as relentless a class of nobles as ever starved their subjects, must win success. The Scots who were not made of sturdy stuff all perished long ago. I realize that one of the most hopeful things about our American movement is that we have a lot of Scotch in it. The first impressive thing that we saw in Scotland was the Scottish Co-operative Wholesale Society. It has the most imposing business build ings in the city of Glasgow. Glas gow strikes one as really more of a co-operative center than any of the big British cities. It not only has a great wholesale but big and thriving distribution societies. The show rooms of the wholesale are most attractive. The quality of the wares is good. Robert Stewart, Pres ident of the S. C. W. S. since 1908, accompanied us through the build ings in the Morrison Street section and through the factories at Shield- hall. Shieldhall is a section of Glas gow, on the Clyde, bought by the S. C. W. S. in 1887, where the whole sale has now about thirty different industries. This is the most varied complex of industrial plants to be found anywhere in the world. More than 5,000 employees are occupied in factories producing shirts, hosiery, underwear, tobacco, brushes, food, shoes, clothing, furniture, packing cases, tin boxes, and bags. A large printing and publishing plant, chem ical department, fire department, am bulance, dining room and kitchen are among the equipment. Flour mills, woolen mills, farms and other factories of great variety are to be found in many other parts of Scotland. The carting department of this organization has 200 horses and 75 automobile trucks. In 1910 it did 6 per cent of its own cartage; in 1921 it did 52 per cent. It is eman cipating itself from express compan ies and railroads. Organized in 1868, its business has steadily increased, till now it amounts to $150,000,000 a year. This can be said of the S. C. W. C.: it is the great wholesaling business in Scotland; in addition to volume of trade, its products are of a high grade; its factories are clean; and though its directors do not aver age young in years, the Scottish wholesale is progressive and alert. We went out to Calderwood, an es tate and farm of 1,125 acres owned by the S. C. W. S., to a Saturday afternoon picnic. On the same day we attended the children's outing of the United Co-operative Baking So ciety, as guests of the president, Alexander Buchanan. The children train all winter in their choral so cieties for the annual big concert, and as a reward for their hard work, every summer they are given a party with contests, games and prizes. This society has two brass bands and gives much attention to recreations. These organizations all keep up educational work. On Sunday we went to Paisley and found a society over sixty years old. It too has beautiful buildings, as well as enough stores to supply the town, a bakery, several dairies and a mem bership nearly as big as the total number of families in the city. It was a joyful experience to enter the CO-OPERATION 59 central office building of this society, the largest office building in the city, and see etched in the glass of one of the office doors, the words, "Educa tional Committee." This committee carries on some education function at least once a month. In Paisley, as in many others of the Scottish socie ties, children's singing and play classes are a successful part of the educational work. I have visited many baking socie ties but none which has the unique record of The United Co-operative Baking Society. Next to the Vienna Co-operative Bakery, this is probably the largest bakery in the world. It has 120 ovens with the most modern machinery. It celebrated its half cen tury jubilee in 1919 and issued a handsome history. Briefly it is a federation of 212 Scottish co-opera tive societies with $2,500,000 share capital. It sells $8,000,000 worth of bread and cakes and makes an an nual surplus-saving of $300,000. It devotes $7,000 a year to co-operative education, carries $250,000 worth of goods in stock and has $1,500,000 reserves. It uses 30,000 tons of flour a year and puts out 800 tons of breadstuffs a week. It has branch bakeries in Scotland and in Ireland. As I went through this huge estab lishment, I was impressed with the fact that Co-operation does best to begin with supplying the most simple and primitive needs, and bread is one of these; and from that point it may go on indefinitely. Bakeries have been the beginnings of many societies for more than a hundred years; they have been more universally success ful than any other co-operative en terprise; they are especially adapted to Co-operation; and accordingly it is natural that two of the greatest bread bakeries in the world are owned by the people who consume the bread. We visited also stores of several of the other Glasgow societies. The Kinning Park Society has 30,- 000 members and 75 stores. The St. George Society is nearly as large. Then Glasgow has the St. Rollox, the Progress, Cowlairs, and London-Road societies. It is a great satisfaction to look down a main business thoroughfare in Glasgow and see a big sign painted on the side of a building, "Join the co-operative society nearest your home." In America such an advan tageous advertising space would be occupied by a cigarette sign. The big society of Edinburgh is St. Cuthbert's Co-operative Associa tion with some 60,000 members, with 150 different establishments, carry ing on every sort of business. It dates back to 1859, and shows a steady growth. Scotland is building a wonderfully substantial movement. The Scotch are slow to act and stubborn. But they are proving that Co-operation is the way out. The only thing that holds them back is respect for estab lished privilege. The King and no bles are all beloved of the Scotch. Dear old William Maxwell, the form er President of the Scotch Whole sale, was fond of proposing toasts "to our beloved Queen." The Scotch still "dearly love a laird." Scotland does not produce enough food-stuff to feed the people; yet one- fifth of its area is used for hunting- lands for the British nobility. Think of it! Scotch Co-operators, like their English brothers, are fed from the cradle up, on the glory of the British Empire, and but vaguely realize that the things they are working for have as their natural opponent the whole British state with all of its trappings and appurtenances. When the International Co-opera tive Movement knits more closely to gether the countries of the world, these slow and steady Scots and Britons will catch the scientific meth ods and efficiency of the Germans, and the result will be victory for the people. For two months we had studied co operative societies in ten countries in Europe. Every day, all day and well into the night, for six days a week of that time we had visited societies or their members. Such an experi- 60 CO-OPERATION ence inspires one with positive con- clusiveness that Co-operation can win, that it is winning, against all the forces of reaction, stupidity and chauvinism—even despite its own blunders or inefficiency. It is win ning because it is the natural and scientific method. If it does not win, the world is lost, and we may as well go back to our caves and our war fares. Co-operation must prevail. Utopians have dreamed of a so ciety in which the people produce and distribute for themselves, without the profit motive, in which business is carried on for service. The So cialists pray for it and vote for it and hope that at some remote day it may be realized. But it is here. It is a dream come true. I have beheld it and lived in it. I have seen the people in their own co-operative homes, served by their own stores and factories, protected, entertained, and educated by agencies all their own. It is said that no man can go into the future and come back and relate what he has seen. I have done it. And coming back to earth again was a great jar. But the experience has taught me that Heaven is not a myth. The Utopia is not far away. It is just up the road a bit on the sunny slopes of the Future. The path is straight and broad enough for all. We must beware of the byways that would lead us astray. We can not go alone. But if we all join hands, we can go; and we shall find the journey sweet. THE INTERCOLLEGIATE CO-OPERATIVE SOCIETY: FIRST CHAPTER AT MARQUETTE UNIVERSITY By ALBERT P. SCHIMBERG President Marquette University Chapter Intercollegiate Co-operative Society The youthful ardor of the college student has been enlisted for Co operation. A group of earnest col legians have rallied to the banner of "All for Each, Each for All," and have sent out a call to their fellow- students to join them in the move ment which they believe is at once the most ideal and the most prac tical of all the movements dealing with our social-economic problems. In Marquette University, Milwau kee, Wisconsin, in the great Middle West, "The Valley of Democracy," Booth Tarkington calls it, there has been organized the first chapter of the Intercollegiate Co-operative So ciety. This chapter has sent out a statement of its purposes, together with an invitation to students in all American and Canadian universi ties and colleges to form chapters. It sent also suggestions, including a copy of its constitution, in the hope that its experience may be of assist ance to other collegians. Marquette University Chapter owes its inception to the resolution adopted at the Second National Convention of The Co-operative League, held at Cincinnati in No vember, 1920. Professor Joseph Reiner, author of the resolution, was made Chairman of the commit tee, and charged with carrying its provisions into effect. This he pro ceeded to do, when, in the fall of 1921, he became a member of the faculty of Marquette University. He gathered a group of students inter ested in social study and explained to them the philosophy, the history, the methods and the potentialities of the Co-operative Movement. Soon afterwards the pioneer chapter of the Intercollegiate Co-operative So ciety was formed, and weekly meet ings have been held. After the chapter members had CO-OPERATION 61 familiarized themselves somewhat more with the movement, they be came enthusiastically eager to spread the gospel of Co-operation among their fellow-students in all parts of the United States and Can ada. Nor is their ardor for Co operation bounded by the borders of their own land and the Dominion. They hope that soon their Latin- American brothers will be enlisted in collegiate Co-operation activity, and that eventually there will be a world-wide collegiate co-operative society, potent not only for the cause of Co-operation, but also, be cause the movement inculcates good will, a mighty force for peace on earth and friendliness among all peoples. The resolution adopted by the Cincinnati Convention of The Co operative League declared that "It is of great importance to the Co operative Movement that students in our colleges and universities be come acquainted with its history, principles and methods, and that they identify themselves with the Movement." Marquette University Chapter members believe that Co-operation deserves students' allegiance, be cause, as they declare in their state ment, it is "a practical ideal of the highest social and economic signifi cance," and "the most important element in the solution of our vexing social problems." They are con vinced that once acquainted with Co-operation, the earnest, social- minded students of all lands will gladly give the Movement practical interest no less than theoretical study while in college, and upon graduation will continue their ac tive interest in genuine co-operative projects. They see particular need for this in America. In Europe Co operation is widespread, and rests on firm foundations of successful years. In the New World it is still in the making, and it deserves and desires what the college man can give it: leadership, youthful ideal ism and ardor to supplement the wise counsel of older men, eager ness to make the benefits of Co-op eration available to many, practical knowledge with which to give as sistance and point out the wheat of genuine Co-operation from the chaff of selfish schemes. The pioneer collegiate chapter emphasizes the desirability of act ual contact with the Co-operative Movement on the part of its mem bers. It wants to carry out the provision of the Cincinnati resolu tion, which desired that college men "identify themselves with the Move ment." They want to keep close to the Movement. At their meetings they read not only excerpts from the magazine "Co-operation," the organ of The Co-operative League, and other co-operative literature, but papers resulting from personal in vestigation of groceries, bakeries, cigar factories and other co-opera tive enterprises. In no better way could they get first-hand informa tion and a clear insight into the practical methods of this ideal sys tem. A significant instance of the Mar quette University Chapter's empha sis on practicability and on keeping in close touch with the Movement, was the address before the chapter by the manager of a co-operative cigar factory. The chapter plans to invite other leading Co-operators to tell its members how they organized and how they are conducting their enterprises. The students who established the first Intercollegiate Co-operative Chapter believe that its two-fold appeal, idealism and practicability, will find a hearty response in Amer ican and Canadian and later in oth er collegiate institutions. They be lieve Co-operation will help to build a better world for the peoples of the earth, and in rearing this noble structure they wish to see all college men have a part. 62 CO-OPERATION OUR MOVEMENT A HOME FOR THE LEAGUE AT LAST! The League is about to move into its own building! At last we have a home of pur own. If the contract ors do their duty the work will be completed and the offices of The League will be transferred to our own premises on May first. We have kept rather quiet about this. But, now, as we see the work nearing completion, we are so bub bling over with joy that we have to tell about it before we move. It is a reality. The building is a fact. For eight years the executive of fices of The League have been at 2 West 13th Street, New York, in the Educational Building. Four times during that period we have had to shift our offices from one part of the building to another in order to get more room. At present The League has offices on two different floors in that building, its literature bureau and shipping department in another building four miles away and the literary editor in Connecticut. Now we shall unite our work under our own roof and no longer be at the mercy of landlords. The new building is, 167 West 12th Street, New York City. That is easy to remember. One and six make seven; the light of the sun moves toward the West; and the twelve apostles are known to all. When it was finally resolved that The League must have its own build ing, the Executive Board set about it to find one. After much search, a modest four-story private house was found, and bought. The whole house is being remodeled, and the ar chitecture completely changed. On one side of our house is the Model School which is nearly co-operative in character; on the other side is a co-operative apartment house now in process of construction. The League is a shareholder of this building so ciety, and it will become a member of The League. Across the street is St. Vincent's Hospital. Our house is a few steps from the 12th Street en trance of the 14th Street express sta tion of the Seventh Avenue subway. It is located between Union Square and the Greenwich Village districts on a restricted street, quiet, and very accessible. The British Union headquarters are Holyoak House, Manchester. Facing the Place Edwarde Anseele in Gent, Belgium, is "Ous Huis" (Our House). This is the head quarters of Belgian inspiration. "Our House" in New York is the center of the Co-operative Movement of the United States. To this center will gravitate the information con cerning our Movement, and from this center will radiate the information to make our Movement sound and clean. We have a long way to go. We must work patiently and fundament ally. Building a structure that will endure is the task for Our House. INCORPORATION OF THE CO OPERATIVE LEAGUE Ever since the organization of The Co-operative League it has en deavored to become incorporated. But no state in the Union had a co operative law or a corporation law under which incorporation could be secured. This was because (1) The League is composed of societies and not of individuals; (2), it has no shares or capital; and, (3), it is an interstate organization, having members in every state, and direct ors distributed from the Atlantic to the Pacific. These are only a few of the peculiarities of The League which were not compatible with corporation laws. The law which was most nearly applicable was found in New York State.. The Ex ecutive Board went to work on this law, and after three years of labor, succeeded in obtaining amendments which made incorporation possible. The League is now incorporated. But in order to accomplish this it CO-OPERATION 63 was necessary to make some con cessions to the law. First, The League has had to alter slightly its name. It will be called The Co-operative League, but the full legal name is The Co-operative League of the United States of America (Association Incorporat- • ed). We shall not use all of this name. The first three words suf fice. Second, It has been necessary to modify slightly the constitution of The Co-operative League of Amer ica to adapt it to the corporation law. The final amending of the constitution will take place at the Third Congress of The League, to be held in the fall of this year. In the meantime, the Board of Directors have approved it and voted that The League shall operate under the new name. Incorporation has been secured in order that the members of The League should be protected and not have to carry the hazard of individual responsibility. THE CO-OPERATIVE LEAGUE'S SCHOOL The Co-operative League will open its school with a course of ten lectures, at The League's House, 167 West 12th Street, New York City, May 2, 1922. The class will meet evenings at 8 o'clock. May 2 1. "The Need of an Understand ing of the Co-operative Movement. Current Errors in Economic Think ing. The Multitude of Economic Programs. Principles of Co-opera tion," J. P. Warbasse. May 5 2. Part 1: "Economic Conditions in the Early Nineteenth Century, Robert Owen; Rochdale; Eighty Years of Co-operation in Great Bri tain," Albert Sonnichsen. Part 2: "The British Movement Today" (with stereopticon views), Julia N. Perkins. May 9 3. "Social Uses of Co-operation in Belgium; Holland; Scandinavia; Switzerland; Co-operative Hous ing," Agnes D. Warbasse. May 12 4. "Germany, the New Leader of Co-operation in Europe; the Cra dle of Co-operative Banking; the Highly Developed Technical Effi ciency; the Race Between Co-opera tion and Starvation in Austria; Vi enna's the Largest Society in the World; the Various Expressions of Co-operation," J. P. Warbasse. May 16 5. "Denmark, a Country 80 Per Cent Co-operative; the Movement in Finland; the Slow Awakening in France and Italy; the 30,000,000 Russian Co-operators Who Passed Through the Revolutionary Period; the Co-operatives and the Soviet; the Movement in India and the Far East; Agriculture," Agnes D. War basse. May 19 6. "The United States, Land of Experiment and Opportunity; the Various Racial Groups; Farmers as Co-operators; Organized Labor and Co-operation; the Variety of Co-op erative Activities in This Country; Federations and Wholesales" (with stereopticon views), Mabel W. Cheel. May 23 7. "Practical Methods: Part 1, Organization and Administration; the Reconciliation of Democratic Control and Technical Efficiency; a Study in Co-operative Failures," Cedric Long; Part 2, "The Place of Education in the Development of the Society; the Co-operative vs. the Private Store as Regards Serv ice; Relation to Employees and Patrons; Women in the Movement," Mabel W. Cheel. May 26 8. "Legal Problems: Incorpora tion Under Adverse Laws; the Ene mies: Unsound Schemes, Privileged Interests, Profit-Making Business, and Impatient Reformers; the Home of Frauds and Faddists," H. Rappaport. May 31 9. "The Relation of Co-operative 64 CO-OPERATION CO-OPERATION 65 to Other Movements; the Attitude of Co-operation Toward the State; Internationalism; Racial Problems; Unemployment; War; Producers' and Consumers' Co-operation," Ced- ric Long. Jmne 2 10. "Philosophy and Ethics of Co-operation; the Co-operative Goal; Voluntary vs. Compulsory As sociation; Production for Use vs. Production for Profit and Wages; the Universal Human Denominator, the Consumer; Co-operation as an End in Social Reorganization," J. P. Warbasse. This course will be followed by a course on Technical Problems. CONFERENCE OF JEWISH SOCIETIES The Federation of Jewish Co operatives of America has proposed that The Co-operative League take over its functions. The League lhas agreed to establish a Jewish Depart ment, with a Jewish Secretary. A conference to discuss this project will be held at the new building of The Co-operative League, 167 West 12th Street, New York, on Sunday morning and afternoon, May 7. All Jewish Co-operative societies are invited to send delegates to this conference to discuss ways and means for such an amalgamation, and for promoting co-operative edu cation among the Jewish societies. PRACTICAL ADVICE The following letter received from a co-operative society, and our reply, speak for themselves. We are pub lishing these two letters for the benefit of other societies. THE LETTER I am submitting for your kind criticism a statement of this Association, which to my mind does not work out as well as ought for the turnover made. We are only one year old and hope for improvement. On the matter of overhead expenses and methods for keeping accounts, we would be thankful for information. We have a McCaskney System and do a large amount of credit business, carrying the patrons 15 days gen erally, and allowing credit to the extent of 75 per cent, of members' stock. We have one delivery truck. We butcher our own meat. Meat, groceries and fruit are the principal items sold. THE REPLY We have analyzed your report, and think in some respects it shows progress and safety, while in the matter of turnover it is not so good. You will see that you are working on a 15 per cent, overhead. The rent should hereafter be figured separately fom other fixed charges. It is low in pro portion to other items, but salaries are rather high for the amount of business done. They amount to 10 per cent, of the sales. We figure that they should be nearer 5 per cent. The only way to get around this is to increase your sales by getting new mem bers, and obtaining more loyalty. The turnover on the capital stock is not enough. You are doing a business of less than $8,000 a month on $9,306 capital, not counting the notes payable. You should aim to do $10,000 a month. See page 12 of "How to Start and Run a Co-operative Store," and go over these figures with the Board of Directors and manager. We regret that you have not been able to get away from the credit system. The McCaskney system of keeping track of cred its is good, but why give credit? If you could start the coupon system instead, issu ing a book for $10 or more, even at a small discount, you would have the money in ad vance, and the members would simply have to bring their books or send them with the order until the amount had been used up. The giving of credit to the extent of 75 per cent, is apt to ruin your society at any mo ment. We heard this week o fa good so ciety going under because almost everybody started a run on the store to the extent of the credit allowed. Begin now to educate against the credit system, and show people that it is to their mutual advantage to pay cash. We recommend the use of the control system published by The League. This system is a guide and an index of the busi ness. It puts the full responsibility for every bit of goods on the manager, at retail value, and the checking up of his records by a control committee teaches business meth ods to a number of people. It is very important to insist upon care ful accounting, and believe a monthly re port should be made to the members of the exact conditions. A semi-annual reckoning is not sufficient, especially in these trying days of depression. Anything may happen in six months, and it is quite important to check up the little leakages and exert every possible means to reduce expenses and save the pennies. THE CO-OPERATIVE LEAGUE or AMERICA. GOOD EDUCATIONAL LETTER The Educational Committee and the Efficiency Committee of the Utica, N. Y., Co-operative Society are com posed of women. These two com mittees sent out a circular letter to the members of the society. This letter is a model which other societies might wisely follow: The undersigned, having been selected at the last meeting as Efficiency and Educa tional Committee, are anxious to be of real help in putting more Co-operation into the Union Co-operative Society. Our first thought in this connection is to address our selves particularly to the women, because unless they thoroughly understand the mean ing of co-operation they cannot be expected to be enthusiastic in the cause and thereby interest themselves in the more rapid growth of our organization. We feel certain that if the women once grasp the real meaning of this grand princi ple of co-operation, they will immediately become better customers of their own busi ness enterprise and not be so ready to fall for the tricky methods with which ordinary business is ever striving the breakdown the loyalty of co-operators. In the first place, we will endeavor to con vince you that it is very much to your own interest to purchase absolutely nothing from those who are constantly offering alleged bargains, their purpose being simply to get you to buy other goods. It must be plain to you that no firm can sell goods at cost. Every business enterprise has more or less of overhead expense, such as rent, light, heat, paper, string, and innumerable other items which enter into the cost of doing business. In addition there is delivery ex pense, wages for hired help, interest on money invested, as well as a profit for the proprietor. These expenses are very much alike in every business of a like nature. Then, too, every business except ours (or, rather, yours) has another item, namely, bad debts; and this usually amounts to a considerable sum in the course of the year. Now, when you buy from others who sell exactly the same sort of goods that you can buy in your own store, you are not only aiding them in meeting their overhead ex penses and providing a profit for them, but you are depriving yourself of the benefit to be derived by decreasing your own over head expenses. Let us see if we can't prove this to you by way of figures: Last year the Utica Co-operative Society did a business of about $114,000. We have invested in buildings, machinery, fixtures, merchandise, etc., $67,000. The interest on investment and other overhead expenses are practically fixed items, and would not be increased one cent if we did a volume of business approximating $200,000, or prac tically twice what we did in 1920. So that we doubled our business this year, as we certainly should, the fixed expense of doing business will be distributed in such a man ner that on each dollar's worth of business pur expenses will be just one-half of what it was last year. This saving from better co-operation will benefit you and every other member in ex actly the proportion of your purchases, be cause whatever is saved from the cost of doing business will be added to the "Sav ings-returns" which are distributed to the members at the close of the year. This is the material benefit you derive by giving your business to your own store. Is it not worth while? If you learn this lesson and live up to it, you will at once make a firm resolution to increase your own business, buying only from your own store, boost for the continued growth of our membership. In a word, set your mind upon helping those who help you. Let us, therefore, all pull together to make our society the tremendous success it can and should be made. While we may not be endowed with the keenest intellect, we should learn to become equally inter ested in promoting the welfare of our own organization, for we are the ones that benefit in the end. Every new member secured and every additional dollar's worth of business done in our store benefits all the members alike, provided their investments in the so ciety and their purchases are alike. Even those who have never secured a new mem ber and perhaps never intend to get one, are benefited by the labors of the others in increasing our membership. But the latter class should at least endeavor to help them selves and make their investment more valuable to themselves by making their pur chases at their own store. To enable our committee to give further aidto the cause, we earnestly urge that each member fill out at once the "Questionnaire" enclosed, and drop it into the Suggestion Box just inside the entrance of our store. Or, if you prefer, hand it to one of our drivers or mail it direct to the Utica Co operative Society, 914 Court Street. The work we are planning is along the line of better co-operation, and you can aid us ma terially in this way. Furthermore, if you have any complaint to make or any sugges tion to offer, do not hesitate to make use of this Suggestion Box. You may be sure that your complaints or suggestions will have the most careful attention, to the end that all of us will be benefited. Fraternally yours, Educational Com. Mrs. R. Henschke, Mrs. D. Eichenhofer, Mrs. A. Fahrman. Efficiency Com. Mrs. H. Brucker, Mrs. F. Buttenschoen, Mrs. J. Seaman. 66 CO-OPERATION NEWS AND COMMENT PACIFIC CO-OPERATIVE LEAGUE IN RECEIVER'S HANDS Three years ago The Co-operative League began a study of the Pacific Co-operative League. During this period The League has had a number of its representatives visit the Pacific coast to get first hand information. These representatives have included its president in 1919 and its financial secretary in 1921. During the past two years particularly, a large amount of correspondence, reports and telegrams have come to the of fice of The League and many Co- operators from the Pacific coast have brought information. The executive board of The League for a long time has been better informed concerning what was going on the Pacific coast than most members of the Pacific League. In fact the indifference of these members and of the Western Labor Movement to the dangers of the situation could be explained only on the ground of ignorance. As is the practice of The League, we first gave the officers of the Pa cific League the benefit of our ex perience and judgment and tried to work with them. Even though it was evident that the Pacific League was pursuing a course that was bound to prove disastrous, we still hoped that they could be induced to adopt sound co-operaitve principles. We had showed the Co-operators of the whole country that the National Co operative Association was using methods that were bound to bring failure and we made it perfectly clear that the Pacific League was using precisely the same methods. We had the facts. We published the cold figures and warned both these organ izations that they were taking the money of the working people with no prospect of success. In the face of this repeated ad vice, the Pacific League supported the National Association. This was not the worst. Its officers united with the officers of the National in a campaign of false statements con cerning the Co-operative Movement such as this country had never seen. We have already published in this magazine how the employees and of ficers of these two organizations came to the Second American Co operative Congress at Cincinnati in 1920 and attempted to destroy The Co-operative League by methods which were as unscrupulous as they were unsuccessful. They stood on the floor of the convention and de fended practices which no decent bunco man would have countenanced. The pitiful story can be read in the Transactions of the Second Congress and in this magazine during the past three years. Still hoping that the Pacific League might be saved, the executive officers of The Co-operative League were in strumental in having resolutions of the Second Congress, which con demned it, not given publicity. When the credentials of the directors of the National were withdrawn by the Congress, exception was made of the president of the Pacific League. He remained and attended every one of the nine sessions of the Congress. But every consideration failed to in terest these officials in sound Co-op eration. It has been evident for two years that the Pacific League was abso lutely in the grip of a small bureauc racy of utterly impractical men. They may once have had interest in Co-operation but that interest has left them. If they ever had a knowl edge of co-operative principles they have renounced them. The wildest tyros could not hit upon more utterly hopeless schemes for organizing co operative societies. American Co operation has some dark pages but none so written over with ignorance and shamelessness. The one thing they resented was the advice of ex perts whose business it is to know the technic of co-operative methods. In the spring of 1921, The Co-op erative League worked out for the Pacific League a critical anal- CO-OPERATION 67 ysis of its defects and a plan of re organization. It was never acted upon. The group of officials who con trolled the organization had made it practically impossible for outside in formation or requests for informa tion to reach the branches. The Cen tral Office appoints the local store managers and these managers act as the agents for the San Francisco of fice. Communications sent from The Co-operative League to a branch of the Pacific League, no matter to whom addressed, were destroyed or sent to the San Francisco office. It was not only impossible for The Co operative League to advise these people but the separate societies could not communicate with one an other. They were isolated from the Co-operative Movement, and to this day many of them do not know what is actually happening. The system of espionage and suppression has been effective in keeping these people in quiet subjection. Conventions of the Pacific League were largely con ventions of the employers of the or ganization branches. Had it been possible to let in among the member ship rays of light concerning the true nature of the situation, the member ship would have risen up long ago and cast out the dangers that were preying upon them, and organized a true Co-operative Movement. Repeated "reorganizations" of the Pacific League have been re ported and analyzed from time to time in this magazine. "The Pacific Wholesale" was never much more than a fiction, for advertising pur poses. "The Co-operative Finance Company," the "Universal Co-opera tive Brotherhood," and the "Pacific Co-operative League Stores, Incor porated," have all been launched one after another, to save a bad situa tion. Neither fancy stories, misrep resentation nor bombast have suc ceeded in promoting these enter prises. And now the latest news from the Pacific coast is that the Pacific Co operative League and the Pacific League Stores, Incorporated, are in the hands of a Federal receiver. How much on the dollar the disillusioned people will get is doubtful. Their officials tell them that the organization is perfectly solvent, but the solvency is based on high finan cial sleight-of-hand. When a group of people have paid in $7,000 cash, and have a store opened with $2,500 worth of goods, and the balance of the money is charged up to the ex penses of organization, administra tion and education, the concern is solvent in terms of that kind of fi nance, if it is any comfort to the people to call it solvency. It has been difficult to develop a Co-operative Movement in California under such conditions, with this out rageous thing in the way. Fortun ately there are good societies that refused to be involved. Within the Pacific League are many earnest and honest people, eager for a Co-opera tive Movement. There are many sound Co-operators in California and the neighboring states. These can now come forward. The people whose longing for true Co-operation has been suppressed and discouraged can now unite. Co-operation in California has won a victory. With the removal of this burden on real Co-operation, the Pa cific coast can now enter into a new and clean co-operative life. Let us hope that this is the last we shall have to publish of this af fair. Here are extracts from the last four communications from the Pa cific Coast; we could publish hun dreds of such statements: SELIGMAN ARIZONA HIT I do not think we can do much with The Co-operative Leagues' little paper, "The Home Co-operator," now, because our members are all sore about the whole sub ject of Co-operation on account of the treatment they have had at the hands of Ames and his crew in San Francisco. It is said that The Pacific League has gone into the hands of a receiver. That will hurt the movement all over the West. A failure now will be very bad for the cause. But Ames has brought this on by his raw dealing with the stores; that is, if 68 CO-OPERATION he treated the others as he did us. This store has made money all the time, and has a good trade now; but Ames has so used up the cash that we have had but little to go on; and he has always had a "claim" against us in the home office. Seligman, Arizona. T. W. BECKWITH. PRACTICES AT PHOENIX The Pacific League failed, not because it was co-operative, but because it was not co-operative. It consisted of a machine which collected $10 a head from would-be Co-operators, who were called upon to do nothing but look pleasant while it kept them in darkness, and now and then slipped them a bit of taffy. In the branch to which I belonged (Phoenix, Arizona), we never once were told anything about a conven tion till it was over, till we were told that Mr. So-and-So had attended from Phoenix; and he was the man who was running us. The last occasion we heard of the delegates were most of them managers of the dif ferent stores who owed their appointment to the San Francisco office. Such people do not criticize. We found that any attempt to exchange any information or ideas be tween branches was denounced furiously and prevented by every possible means. Los Angeles, Cal. THOMAS H. BELL. ADVICE FROM SAN DIEGO (Telegram) Sheriff closed our stores February 17. Attachment by San Francisco wholesalers for thousands owed by Pacific League. Apparently scheme of League to destroy all bona fide co-operatives refusing to turn over stores to corporation controlled by Ames, Todd and Dobbs. San Diego with drew from League November 17. We do not owe San Francisco wholesalers nor Pa cific League one cent. Now suing Ames and League for accounting and return of several thousand dollars due us. Other Co-operatives being closed by League and big1 business. Workers will lose thousands. These fakirs must be exposed. Can you circularize coast unions, Co-operatives and newspapers warning, against this outfit? SAN DIEGO CO-OPERATIVE ASS'N. CHARLES J. EASON, Pres. STANLEY McGUE, Sec. METHODS EXPOSED (Telegram) California Corporation Commissioner re voked Pacific League Corporation permit to do business in California February 17, ten days before Ames asked receivership. Following demand of Federated Trades Council, State Commissioner has ordered special investigation of Ames outfit. Car penters' Union here has commenced legal proceedings against Ames' crowd. These facts should be given publicity. SAN DIEGO CO-OPERATIVE ASSOC. March 24, 1922. ONE CENT ON THE DOLLAR "The National Co-operative Asso ciation" went into the receiver's hands last year and its Hoboken, Chicago and Seattle warehouses were sold out. It owed The Co-operative League for literature $44. The ac counts have been settled and The League has just received a check for 44 cents. The working people who put in their money will get one cent on the dollar. The lawyers get $6,350. A letter just received from the ref eree in bankruptcy of the district court of the United States states as follows: "In my entire experience as referee which covers a period of ten years, I do not recall a case where the funds were so badly dissipated as they were in this matter. It is a source of great regret that so small an amount could be recovered, as many poor persons were creditors of this bankrupt who could ill afford to lose the money. As I have observed the wreck of this company I am wondering whether there are any co operative organizations that are properly handled and are a finan cial success." Contrast the above facts with the following statements of E. O. F. Ames, president of the Pacific Coast Co-operative League and director of the National Co-operative Associa tion, made on the floor of the Cin cinnati Convention a few weeks be- for the National failed: "I can not understand the slightest grounds for the criticism which Dr. Warbasse is giving to the National Co-operative Association. I highly honor the men at its head and the splendid work they are doing"; and "If the National should fail it will be due to this criticism." These are the sort of people who would say that they do not see the slightest grounds for the surgeon telling the patient that his leg is broken; and if he don't get up and go to work it is the surgeon's fault. They would criticize a man for giv ing the alarm when a house is on fire. CO-OPERATION 69 WARNING CONCERNING THE "CO-OPERATIVE LEAGUE OF AMERICA" OF PENNSYL VANIA The name of The Co-operative League is sometimes confused with that of an organization calling itself the "Co-operative League of America" w'hich has been doing business in several states. It represents itself to be co-operative. It is not incorpo rated in any state, but it has its head office in Pittsburgh. It is a "deed of trust" organization. The ill-famed "Co-operative Society of America," before it went into receiv ership, recommended this organiza tion very highly. We have already described the nature of the deed of trust. It is to provide trustees for incompetents, infants and imbeciles; and it places all control absolutely in the hands of the few organizing trustees. No honest business calling itself "co-operative" should be at tempted under this law. This "Co-operative League of America," of Pennsylvania, went into New York state last year but was forbidden to do business in that state. It then went into Ohio and the west ern states. It conducts a banking business called "co-operative," and makes loans to members for build ing purposes at 3 per cent per year. It recently attempted to open offices in Illinois, but the attorney general and the secretary of state prohibited its doing so. Attorney General Brundage of Illinois, in a letter to the secretary of state, says: "It appears that the said League is or ganized as a common law trust, and it has been repeatedly held by this department that such organization, when formed for business purposes, is aganist the public policy of this state. The sale of its loan and home purchasing contracts should not be permitted by your department." This concern has recently made ap plication to the Ontario government for the privilege of doing business in Canada. Because The Co-operative League has often been confused with this non-co-operative business enterprise, we desire to warn our readers and all Co-operators that we have nothing in common. It was organized after The League and is infringing upon The League's priority in using the name. It will not be permitted to do busi ness in states which have an attorney general and secretary of state who are capable of protecting the citizens from such organizations. LAST WORD ON "CO-OPERA TIVE SOCIETY OF AMERICA" Harrison Parker's "Co-operative Society of America" went into the hands of a receiver last fall. How much money the working people lost by this non^co-operative scheme is not definitely known, but some $11,- 500,000 was invested in it by inno cent people who thought they were joining a co-operative society. We advise Co-operators that this "deed of trust" concern has started business again with two new trustees. It claims that it has "reorganized"; but it is no more co-operative than 'it ever was. It will not be permitted to do business in states which have a co operative law prohibiting such enter prises. CO-OPERATION SUCCEEDS The above horrible examples are ex ternal to the field of Co-operation. The Co-operative Movement in the United States is moving forward with steady progress. The substantial so cieties are joining The Co-operative League. Among the members of The League, failure is rare. Fundamen tal work is bringing success. 70 CO-OPERATION THE NORTHERN STATES LEAGUE ORGANIZED The following telegram has just been received by The League: Our convention a great success. Sixteen societies represented, with a total member ship of 10,500. Northern States Co-opera tive League organized with headquarters in Superior. Decided to hold next convention in September at Minneapolis. Accept our hearty thanks for your greetings to the Convention. S. ALENNE, Sec'y. Superior, Wisconsin. Thus the steady and quiet work of building a Co-operative Movement in the United States goes on. NEW YORK CO-OPS DO BUSINESS OF $1,600,000 The Co-operative Associations in New York City did a business of $1,600,000 during 1921, according to Louis Blachly, Director of the Co operative Division of the State De partment of Farms and Markets. This figure does not include the business done by the co-operative housing societies. While some weak organizations went to the wall, the well-organized groups continued to grow and pros per. Two of the Co-operatives which paid no dividends in 1920 made 8 per cent returns to their members last year. The large Co operatives showed a steady increase in the number of members and the amount of business done. The largest Co-operative in New York is the Finnish Co-operative Trading Association. During 1921 its business was $269,000, including receipts of $135,000 from its bak ery, $58,000 from a meat market, and $11,500 from a pool room. This society has a membership of 1,800, a gain of 300 for the year. A Co operative restaurant is run by an other association in the same build ing. This restaurant did a business of $70,000 last year. The members of the Finnish Trading Association also conduct several large apart ment houses co-operatively. A Co-operative bakery in Brook lyn has a membership of 2,000, and did a business of $175,000 for the year. The Workmen's Circle oper ates a bakery in the Bronx, the sales during 1921 amounting to $206,000. Six butcher shops are conducted by the People's Co-operative Society, a Jewish group. The business to talled $225,000 in 1921, meat being furnished below current prices. COURSE ON CO-OPERATION The Scranton Co-operative Asso ciation, of Scranton, Pennsylvania, is now conducting a study course on Co-operation as a part of its educa tional work. Martin Weber, the manager of the store, is the instruc tor. Thirty-one students are en rolled and the average attendance is twenty-five. The students consist mostly of the Board of Directors of the society, members of the Wom an's Guild, and of the Educational Committee. The class meets every Friday night in the store. The Syllabus for a study course, prepared by The League, is used as an outline. Son- nichsen's "Consumers' Co-opera tion," and Harris' "Co-operation, the Hope of the Consumer," are used as text-books. SOCIETY DISTRIBUTES $12,000 Checks for more than $12,000 in the form of savings-returns were given out by the Soo (Michigan) Co operative Mercantile Association in amounts from $1.25 to more than $360, at the ninth annual meeting of the association. More than 500 stockholders and others interested attended the meet ing. At the election of officers there were 341 votes cast. The society has 398 members. This is close to 100 per cent, attendance. The stockholders received five per cent, savings-returns on the goods they purchased during the year and the non-stockholders received 2J/2 per cent, on the amounts of their pur- CO-OPERATION 71 chases, the amount being paid to them either in merchandise or in credit toward the purchase of shares. The stockholders also receive checks for 6 per cent, on their stock. T. M. Ross, the president, told the stockholders the need of expansion of the organization, "Our bake shop is inadequate, we need larger quarters," he declared. He suggested building a new bakery on the rear of their main store property and using the space now occupied by the bakery to enlarge the grocery lines. The work ing capital of about $19,000 was turned over 15 times during the past year. In 1921 the society did a business of $309,000. In 1920 the income was $365,000 on account of the higher since then, the society did a bigger have fallen at least thirty per cent, prices existing at that time. As prices business in 1921 than the previous years, though the receipts fell. It is operated strictly on the Rochdale basis, is a member of The League, and handles groceries, meat, coal, and bakery products. At the close of the meeting refresh ments were served and dancing was enjoyed for the remainder of the evening. FIRE INSURANCE AT WOOD- RIDGE It cost the farmers of Woodridge, New York, last year less than one cent for every hundred dollars of in surance written on their property by the Co-operative Fire Insurance Co. of Sullivan and adjoining counties. Compare this cost with your fire in surance premium! With $4,330,660 worth of fire in surance in force at the end of Sep tember, 1921, the expenses incurred amounted to only $38,000, which in cluded $27,000 in losses and only $11,- 000 for administrative and operating expenses. Thirty-nine members re ceived sums ranging from $5 to $4,- 850 for damages to their property from fire or lightning. Since the co operative insurance company com menced business in 1913, fire and lightning losses of $114,721 have been paid to members. By the end of 1921 the co-operative had $6,500,000 worth of insurance in effect. Members are charged pre miums based on the losses and op erating expenses of the previous year. It is estimated that the saving to the Co-operators during 1921 amounted to more than $79,000. There are now 1,900 policies in effect, and 1,015 members enrolled in the society. Woodridge, New York, is the cen ter for half a dozen prosperous Co operatives, including two fire insur ance companies, one auto insurance company, and a credit union. CLEVELAND DISTRICT LEAGUE ORGANIZED The seven co-operative enterprises in Cleveland, Ohio, have formed a District League in that city. The following outline of work to be under taken by the League is suggested: 1. Members are to be kept in close touch with the state and national or ganizations. 2. Uniform propaganda for co-op erative societies is to be published and distributed. 3. A more extensive city-wide ed ucational program is to be planned and carried out by the League. 4. The buying power of the vari ous societies may be concentrated, and a lower wholesale rate secured. 5. Promises of large returns on money invested can be minimized and the value of Co-operation emphasized. The first immediate task under taken was the sale of shares in the City Co-operative Dairy, capitalized at $100,000. The Cleveland District League will aid in organizing the new co-operative dairy, which is the outgrowth of the recent milk strike in that city. The District League recommended to the City Co-opera tive Dairy that no interest, or as low a rate as possible, be paid on stock issued by the dairy. Joseph C. Robb of the B. L. E. Co-operative National Bank was elected temporary Chair man, and Edith Gwinn, temporary Secretary. 72 CO-OPERATION CO-OPERATION CORRESPONDENCE HUCKNALL, ENGLAND, INTER ESTS THE CHILDREN You will observe by the heading of our letter that this Society was established in 1864, and, although by no means the largest society in the Midlands, it is with out doubt one of the most successful, and has had a wonderful career. We celebrated our Jubilee in 1914, with a very big program, including a most suc cessful Sunday service, for it was on that particular date when the Society was estab lished fifty years before The event was most impressive and unique in every re spect. Concerts and a special exhibition of salable goods were held. All the day school children in the district served by the So ciety were right royally entertained, and a special Jubilee dividend was paid to our members at a rate of about 25 per cent in advance of our usual quarterly dividend. Before our program was fully completed the great war broke put, and this before the whole of the Jubilee money was dis posed of. These celebrations gave us a huge advertisement, and since then ours has been a continuous line of success. We may mention that when peace was cele brated we entertained all the day school children again on similar lines, the after noon alone costing us about 450 pounds ($1,800), and with this we had another big advertisement. We would like to particularly point out that we are one of the few Societies that has made farming a success. We consider that we have got one of the "show farms" of the Midlands. Yours, etc., J. C. HAWITT, Gen. Sec. and Manager Hucknall Torkard Industrial Provident Society, Ltd. HOW BOSTON CO-OPERATIVE BANK HELPS MEMBERS Here are a few samples of what we do in our Credit Union in Boston. One $50 loan was made for a member to buy groceries and household necessities in quantity at low price and pay back to Credit Union not less than $2 per week. A $50 loan was made to a member whose wife was to have a baby. When the doctor arrived he had the money to pay on the spot. He is paying back $2 each week. A $50 loan was made to a member to buy winter clothing for himself and mother, He is paying back $3 each week. A loan of $50 was made to en able a girl member to have her teeth at tended to and pay cash. She pays back $2 per week. A $75 loan was made to a member so he could pay back-rent for his married sister whose husband had been out of work three months and had been or dered out. He pays back $4 each week. All our borrowers are paying up promptly. We loan no money for buying luxuries. Every borrower furnishes two endorsers, and rf the loan is over $50 security is re quired^ such as insurance policy, etc. I wish space would give me a chance to give you more cases. We are out to help worthy members to get ahead, but do not listen to any application for loans on sure thing gambles in stocks, nor for a joy rid ing auto. We have plenty of worthy cases and could help more if we had more funds. Our expenses since April 20, 1921, have been only $23.20. HARRY L. HASKELL, Treasurer. Union Workers Credit Union, Boston, Mass. NINE HUNDRED PER CENT GROWTH IN ERIE Our store business here has grown from less than $300 per week a year ago to over $2,700 per week now. During the year 1921 we showed a net profit of 30 per cent, on our investment. There is no groc ery in the city of Erie doing the volume of business that our store is. Neither is there any store whose business is so valued and sought after by the jobbers. H. O. HIRT, Manager. Lake Erie Co-operative Association, Erie, Pa. (This society is a member of The League, and it keeps the members loyal and in formed on Co-operation by distributing the "Home Co-operator.") ENCOURAGEMENT FOR MANAGERS This is taken from a letter writ ten to The League by the manager of the Annfield Plain Industrial Co operative Society, Ltd., England: I may say if I'm spared until March I shall commence my fiftieth year as man ager. I commenced with a boy and myself and we have now some 350 or more em ployees, our turnover for 1920 being over a million pounds ($4,000,000.) Yours sincerely, A. BROWN. NOTICE Persons having books on Co-opera tion are requested to donate them to The League. PUBLICATIONS OF THE CO-OPERATIVE LEAGUE HISTORICAL Per Copy Per 100 3. Story of Co-operation .................................................9 .10 $6.00 7. British Co-operative Movement ........................................ .10 6.00 10. A Baker and What He Baked (Belgian Movement)...................... .05 38. Co-operative Consumers' Movement in the United States............... .05 4.00 TECHNICAL 4. Hew to Start and Run a Rochdale Co-operative Society.................. .10 4.00 5. System of Store Records and Accounts................................ .50 6. A Model Constitution and By-Laws for a Co-operative Society........... .05 2.60 8. Co-operative Education. Duties of Educational Committee Defined..... .10 9. How to Start a Co-operative Wholesale................................ .10 27. Why Co-operative Stores Fail .............. .......................... .02 1.00 2. Co-operative Store Management ...................................... .10 14. How to Start and Run a. Women's Guild................................ .05 MISCELLANEOUS 46. Producers' Co-operative Industries ................................... .10 11. Control of Industry by the People Through the Co-operative Movement... .10 12. Credit Union and Co-operative Store.................................. .05 1.75 34. Co-operative Movement (Yiddish) .................................... .02 IM 43. Co-operative Housing ................................................. .10 ONE-PAGE LEAFLETS (One cent each; 50 cents per 100; $2.50 oer BOO; $4 per 1,000) (1) Principles and Aims of the Co-operative League of America; (17) Do You Know Why You Should Be a Co-operator; (20) Why Loyalty Is Necessary; (21) Cost and Crime of Credit; (22) A Real Co-operator; (2E) Resolutions Adopted by A. F. of L.; (26) Factory Workers, Co-operate!; (28) Do You Know About Co-operation in Europe?; (40) Have You a Committee on Education and Recreation?; (44) What Is the Co-operative Movement? Miscellaneous Educational Leaflets. MONTHLY PUBLICATIONS CO-OPERATION—(In bundle lots, $7.50 per hundred). Subscription, per year......... .$1.00 HOME CO-OPERATOR, 4 pages ................................................ $1 per 100 INTERNATIONAL CO-OPERATIVE BULLETIN (Pub. by The I. C. A.)...... .per year, $1.50 BOOKS The following books are recommended as containing the best discussions of the modern Co-operative Movement. They made be ordered through The League: Bubnoff, J. B.: The Co-operative Movement in Russia, 1917.......................... .$1.25 Faber, Harald: Co-operation in Danish Agriculture, 1918.............................. 2.7B Flanagan, J. A.: Wholesale Co-operation in Scotland, 1920............................ 2.00 Gebhard, Hannes: Co-operation in Finland, 1916...................................... 2.00 Gide, C.: Consumers' Co-operative Societies, 1921...................................... 2.50 Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, $2.00; paper bound ........................................................................... -60 History of Co-operation in the United States. Vol. IV, Johns Hopklns University Studies, 1888 ................................................................... 4.00 Holyoake, George Jacob: The History of the Rochdale Pioneers........................ 2.00 Howe, Fred C.: Denmark, a Co-operative Commonwealth, 1921.......................... 2.50 Maxwell, Wm.: History of Co-operation in Scotland, 1910.............................. 2.00 Nicholson, Isa: Our Story ............................................................ -SB Powell, G. Harold: Co-operation in Agriculture. Macmillan ........................... 1.50 Redfern, Percy: The Story of the C. W. S............................................. 2.00 Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918....................... 2.50 Smith-Gordon: Co-operation in Many Lands, 1920...................................... 2.50 Sonnichsen, Albert: Consumers' Co-operation, 1919. Cloth bound, $1.75; paper bound... .75 Stolinsky, A.: The Co-operative Movement. In Yiddish................................ 1.00 Webb, B. and S.: The Consumers' Co-operative Movement, 1921........................ 6.00 Webb, Catherine: Industrial Co-operaticn, 1917 ...................................... 1.50 Woolf, Leonard: Co-operation and the Future of Industry............................. 2.00 Woolf, L.: Socialism and Co-operation................................................ 2.00 "The Co-operative Consumer" and "Co-operation," III (1917), VI (1920), VII (1921).... 1.25 Transactions of Second American Co-operative Convention, 1920....................... 1.00 The People's Year Book, 1922...................................................... .75 (Ten cents postage should be added for books which cost more than $2.00, and five cents for the smaller books.) THE CO-OPERATIVE LEAGUE OF AMERICA (Member of The International Co-operative Allinace) Executive Office: 2 West 13th Street, New York An educational organization for teaching the history, principles, methods and aims of the Co-orerative Movement and for the promotion of Co-operation in the United States. Join The League and thus help promote the educational work of the Co-opera tive Movement. Individual Membership, 1.00 a year. Subscribe for CO-OPERATION Formerly the "Co-operative Consumer." The Monthly Magazine of The League. Keep in touch with the Movement, §1.00 a year. This Journal Is Not Published for Profit Co-operative Central Exchange Wholesale Grocers and Jobbers, Bakers We supply goods to Co-operative Societies OX We are owned and controlled by Co-operative Societies. We are organized to enable Co-operative Societies to do collectively what they cannot do indi vidually. Co-operative Central Exchange Offices, Warehouses and Plant: Winter Street and Ogden Ave., SUPERIOR, WIS. Co-operators* Ltd. Mutual Fire Insurance Co. is now writing insurance in State of Wisconsin. The Canadian Co-operator Brantford, Ontario, Canada The organ of the Canadian Co-opera tive Movement, owned by and con ducted under the auspices of The Co-operative Union of Canada. Published monthly; 75c per annum MOVING PICTURES and Stereopticon Lectures may be rented from CO-OPERATIVE I.EAGTJE OF AMERICA S West 13th St., New York City 1. "Sort.* Examples of English Co-operation." Moving pictures of factory processes (two reels) ................................$5.00 2. "Co-operation in the United States." With 53 Stereopticon views ........... .$3.00 3. "The Co-operative Movement in Rnsssia." With 36 colored Stereopticon views. .. .$3.00 Co-operation in Scotland In no part of the world is Co-operaiion further developed, or more successfully practised than In Scotland. If you wish to keep in touch, read "The Scottish Co-operator" (Published Weekly) Subscription: Tear 12 sh.: half-year. 6 sh. Address, 119 Paisley Road, Glasgow, Scotland THE PRODUCER Issued Monthly Price 3d. If you want to keep in touch with business, organization, administra tive affairs, and problems of the British Co-operative Movement, read THE PRODUCER. Published by Co-operative Wholesale Society, Inc. 1 Balloon Street, Manchester. Post free 4 sh. 6d. a year. The Trade and Technical Orean of British Co-operation. THE HOME CO-OPERATOR A four-page magazine for use in co-operative societies. Issued monthly, in bundles, $1 per hundred. Published by The Co-operative League Write to the Managing Editor, Albert Son- nichsen, Willimatic, Conn. (OOFCRATION A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in vol untary association, produce and distribute for their own use the things they need Published monthly by The Co-operative League, 167 West Twelfth Street, 'New York City, J. P. Warbasse, Editor. Price, $1.00 a year. Entered as second class matter, December 19, 1917, at the Post Office at New York, N. Y., under (the Act of March 3, 1879. Vol. VIII, No. 5 MAY, 1922 1O Cents VITAL ISSUES THE COAL STRIKE In 1919 the bituminous coal min ers struck and the whole force of the United States Government was used against them. As to the states, in every state where miners were on strike the state government used its power to defeat them. Cos sacks rode them down, police clubbed them, leaders were put in jail, courts issued injunctions. The miners were protesting against reductions of wages. The public said that they were wrong and should have gone on working, content with their lot. If that attitude could have been held in the strike of 1919 by some, it cannot be held by any in this present strike. In this present situation the mine owners have openly broken their con tract of March 30, 1920. They have refused to confer with the miners on a new wage scale. By repudiating their agreement they have defied the miners and the consumers, and have made the strike inevitable. Now comes the interesting revela tion. In 1919, when the government could find some shadow of an excuse to assume that the miners were in the wrong, it was openly against them and for the mine owners. But now, when the miners are absolutely in the right and the mine owners have violated every precept of decency, where does the U. S. Government stand ? It goes as far as to administer a mild verbal expression of disapprov al to the mine owners, which costs no body any money, and then maintains a strict hands-off policy. If the work ers had been guilty of such flagrant dishonesty and breaking of contracts as the mine owners have, the United States Government would 'have treat ed them like cattle; and everybody knows it. But here is a case so fla grant that even the press, which is usually against the1 workers, is pretty generally on the workers' side. The government is not for the workers; it is against them. Undoubtedly public opinion in this strike will be .strong enough to com pel the government to take notice1, and we may expect "hearings," "in vestigations," and even demands of settlement imposed upon the mine owners. This brings us to a fundamental fact which every working man should understand. Government has two main functions. The first is to keep itself alive—to perpetuate itself. The second function is to protect the privileges of the property-owning minority. The government will al ways be found favoring the interests of property when they come in con flict with human beings and human life. The government is the cham pion of property against labor; and 74 CO-OPERATION it can pretty generally be expected to play true to its obligations. The sooner the working people under stand these simple facts the sooner they will proceed to solve this prob lem, and the less seriously will they take the antics of the gentry at Washington. Now talk is turning to government ownership of the coal mines. There is delusion in this proposition. It may be better than the present sys tem of ownership and exploitation by the coal barons (nothing could be worse); but it does not solve the problem. What the government owns, the people do not own. Let us make no mistaks about this. Under gov ernment ownership, coal would not be mined in the interest of the peo ple, but in the interest of the govern ment. The people and the govern ment are two different things. They always have been been; they always will be. The mining and distribution of coal will not be upon a just and scientific basis until the consumers own the mines. And when the consumers own the mines coal will be mined and distributed for use—for the service of the people who are the owners. The less the government has to do with it the better it will be for the people. WE ARE ONTO GENOA The conference of Versailles in 1919 assembled the victors of the War for Democracy. George, Wilson and Clemenceau had the greatest op portunity three men ever had to give the world peace, prosperity and hap piness. They did just what this mag azine said they would do. The three of them acted in perfect accord to keep alive the hostilities of the world. There wa,s never a moment of dis agreement on the main point. They all insisted on preserving the1 eco nomic system that makes war neces sary. Had their avowed purpose been to perpetuate human injustice and suffering they could not have hit upon plans more fitted to that end. When the generation of childlike and deluded victims of these three men has passed away, history will write them down as betrayers of the simple and confiding humanity that once trusted them with its life and honor. Before we realized the depth of perfidy to which these men would sink, this magazine advocated that Co-operators of all of the countries of the world should sit at the Versailles conference. That having been de nied, we advocated a non-political world congress of representatives of the consumers. Finally such a co operative congress was held at Basel in 1921. But it was too late to affect the "peace settlement"; the damage had been done. Later came the "Arms Confer ence" of the victorious Powers, at Washington. Conditions in Europe were so bad that something had to be done to make a showing of getting the nations together. War and the costs of the preparations for war had become so expensive that the bank ruptcy of all the great militaristic nations was threatened. The Wash ington conference of diplomats and militarists did the best it could. But thoughtful people did not take it seriously. This gathering of war- makers could not be in the interest of peace. Any treaties that came out of it could have no power for peace. But this Washington confer ence did have one significant result: It made war cheaper by scrapping some hundred and twenty floating relics of barbarous antiquity. Mak ing war cheaper, however, does not prevent war; it makes war more pos sible. The Washington conference did not take any concern to .scrap the poison gas outfits. Such an act would really have interfered with war. The second thing it did was to create the "five-power treaty," which carried with it the right of five for eign nations to loot the Far East by agreement. On the whole, war was brought nearer by the Washington confer ence. CO-OPERATION 75 The pathetic side of this whole business is that European Co-opera tors keep on taking these conferences seriously. Our esteemed contem porary, The Co-operative News, was full of hope for Versailles; and with childlike credulity ,saw in Washing ton the hope of the great blessings that Versailles failed to deliver. Now it is discussing the international con ference at Genoa with the same old British .seriousness, as though the editor had not an Irish name! Let Co-operators bear in mind that the same gentry will go to Genoa as went to the two other conferences. They will tolerate the representatives from Russia because they must. They may take action looking to the establishment of better trading re lations with Russia and Germany for the sake of saving themselves; but their 'hands are absolutely tied against any action that will establish fundamental economic justice in the world. The old crew are scuttling the ship, and they will go down with it. Co-operators may be invited to par ticipate in these conferences. But when they call upon Co-operators it will be too late to save them. We will come only to bid them "good-bye." A new light will be shning in the heavens. Simple souls now cry, "On to Ge noa." Once the refrain was "On to Versailles," "On to Washington." Co-operators above all people in the world should be wise to the great world tragedy now being played at these conferences. Co-operators at least should be onto Genoa! FOOD FOR THOUGHT AND USE One of the largest co-operative so cieties in England was started by working people who were constantly made sick by the food they were buy ing at the private groceries. Finally when they found that a grocer was putting plaster of Paris in the flour and that an old lady nearly died from eating it, they thought the time had come to act. From the day they started their society, the people of that community have enjoyed better health. The co-operative bakeries in Ger many have a special apparatus for taking the impurities out of the flour. The private bakeries do not use this process at all. What becomes of the impurities? The co-operative bak eries cart it away by the truck load; the customers of the private bakeries eat it. Mr. Alfred W. McCann has written an instructive book entitled, "Starv ing America." It is pretty hard read ing for any American citizen who pays taxes and eats three meals a day. It either makes him mad or sick at the .stomach to learn what is put over on him in this land of free dom. It makes him sick to read of the poison the consumer gets for the glorious sake of profits. One does not have to think very hard to realize that he takes his life in his 'hands every time he sits down at the table. Mr. McCann estimated that 3,000,000 people are made ill in this country every year with adulterated food. Surprising and unexpected sickness is always turning up. We are always hearing of the mysterious cases of "ptomaine poisoning," "died of acute indigestion," "intestinal colic," "bo tulism," "dysentery," "dyspepsia" and "chronic headache." Emerson knew it fifty years ago when he said: "It is only necessary to ask a few ques tions as to the progress of the arti cles of commerce from the fields where they grow, to our houses, to become aware that we eat and drink and wear perjury and fraud in a hundred commodities." It is the same today. In Money's book on "Riches and Poverty," he says: "Sham, shoddy and make-be lieve—these are erected in the form of houses, sewed up in the form of suits, packed in tins to mock child ren as food, made the sole occupation of millions of quite honest people." Dr. Lewis B. Allyn asserts that be tween eight and fifteen per cent of 76 CO-OPERATION the food sold is debased. Mr. Gaston G. Nettes, president of the Interna tional Pure Food Association, asserts that 40 per cent of the food entering New York should be thrown away. It is humorously related that the investigation of ten articles in a gro cery store conducted by the health authorities, discovered poison in nine of them: the only one that did not contain poison was "Radam's Rat Powder." Be this as it may, there is every reason to adulterate and de fraud so long as the motive in .sell ing to the consumer is to make pro fits from him. Outside of the con science of the trader and the busi ness advantages in selling good foods, the only thing that stands between the consumer and slow starvation or slow poisoning is the law with its in spectors, fines and prisons. This is not civilization. A state of society fit to be called civilization would not require these utterly unnecessary things. That the whole of society, the con suming public, is at the mercy of pro fit-making business in the very sub stances of life, is an unspeakable tragedy. The great forces of society that are fighting to maintain these conditions are the agencies of dark ness; the light of a better day is in the hands of those who are striving to institute the production and distri bution of food for use. THE EDUCATED SECRETARY When the .secretary of a co-opera tive society, immediately upon his election, proceeds to educate himself in Co-operation so that he may un derstand the subject better, the Move ment may take heart. On another page in this magazine is a letter from the secretary of a society in Rhode Island in which he expresses this pur pose, "in order that I may render to my fellow Co-operators a more effici ent service." This is fine. Would that all officers of our societies might feel this responsibility and move to grasp the opportunities for larger ser vice to their fellow men and to them selves ! Faithful and conscientious officers are necessary to success. But above all, they must understand Co-opera tion. Not only has our Movement a philosophy and a glorious history, but it has a technic which must be understood and mastered in order to win success. Success can be guaran teed by education. It is .such men as this secretary who are winning the success for Co-operation in the United States. MAKING THE PICTURES The job of The Co-operative League in the United States is to make Co operation succeed. The first import ant thing is that the people shall know what Co-operation looks like when they see it. Once upon a time a little girl was drawing a picture. Her mother asked her what she was drawing. "God," replied the child. "But," said the mother, "you can not make a picture of God; nobody knows how God looks." "Well," replied the child, they will when I get this picture fin ished." The people in this country may not have seen Co-operation. They may not know how it looks or how it should look. But The League is going to keep at its task of making a picture and visualizing true Co-operation un til all shall know it when they see it. THE LEAGUE'S SCHOOL In the April number of this maga zine was published the schedule of the first course of lectures to be giv en in the Co-operative League House, beginning May 2d. All of the ar rangements are completed. The open ing of the new building with this course of lectures is another indica tion of the progress of co-operative education in the United States. Steadily, without haste, but without ceasing, the fundamental work is be ing done. CO-OPERATION 77 SEEN HERE AND THERE By J. P. W. The Fate of a Building Guild In Kittering, England, was a guild of builders. It took contracts to build houses. When the town built a library about twenty years ago the guild got the contract. But it lost so much money on the job that it had to go out of business. To save it, the Kittering Consumers' Co operative Society "took it over." The society created a building de partment in order to give these men employment. In 1901 it bought a farm estate adjoining the town for $50,000, and set its builders to work building houses. The society put up 180 houses and sold them to its members at cost. It retained a few to rent to members. These are rented for $2.50 a week net. This building department 'has been in operation ever since. The Superintendent is paid $2,000 a year. There are seventy artisans, representing all of the building trades. The society keeps them busy. This society is practically the whole town. When anybody wants a carpenter, mason, or plumbing work done he employs the society to do it. The municipal political government and profit business are fading out. The Co-operative So ciety is taking their place. Savings-Return or No I heard the question of paying a savings - return discussed at the Carlsbad Congress of German Czecho - Slovak Co - operative Socie ties in August, 1921. Some dele gates were in favor of paying a good dividend. They said that if the members can buy cheaper from private stores they do so and leave the society; but a savings-return would hold them. On the other hand, it was shown that, although in 1919 the societies paid a savings- return of 4 per cent, when in 1920 they paid only 2 per cent, in that year they not only did not lose mem bers, but they gained members. The members know the co-operative goods are better, and therefore cheaper. Being guaranteed good goods, and knowing that they are connected with a great Movement for human betterment amounted to more than a little dividend. During the war these societies acquired an enormous membership, "who are in no sense of the word Co- operators," said the speaker. "They joined because the societies could serve them better than anybody else. They will go out if we do not continue to serve them better—or unless we can convert them into Co- operators." It is interesting to note how all questions in Co-operation finally come back to the big question of the need of education in the real mean ing and objects of Co-operation. The Belgian Co-operators and the Was- The Belgian Co-operators had some interesting experiences with the invaders of Belgium during the war. When the Germans came into Ghent the German General Staff looked around for the best building for their headquarters, and picked the Co-operative Festal Palace. It is a beautiful new building, opened in 1914, with two large auditoriums, restaurant and meeting halls. The Ghent Society had to move out of it. They organized their moving picture show in another building nearby. The German officers used to stroll down to the show every night, and the Co-operators always gave them some good, shocking propaganda. There has been a lot of publicity given to the deportation of Belgians, but there is one side of the matter that most people do not know about. The deportees were largely people who were being penalized for hav ing a social conscience. The Bel gians who were deported were mostly Socialist Co-operators. The deportations were made largely 78 CO-OPERATION from that district that had 90 per cent Socialist votes. These people were the most dangerous to leave in Belgium. They were the people who were most capable of influenc ing the German soldiers not to fight. They were sent to Germany really for the purpose of getting them out of Belgium and out of contact with the German soldiers. In Germany they suffered severely. For their refusal to work they were badly treated; and now they are still bit ter against the Germans, while the Belgian farmers, who made money selling their produce at big prices to the German army, are prone to speak in more approving terms of their old enemy. When the German army evacu ated Belgium the Co-operative So ciety of Brussels celebrated by hanging out forty red flags on its big building and one Belgian flag. This made the patriotic Belgian 100 per centers mad, and they have not forgiven the Co-operators yet. As a result of the excitement of the war, Anselle, the "Father of Bel gian Co-operation," got elected to Parliament. He knew that there was not much to be done in the po litical field, but he used his position very efficiently for co-operative propaganda. As he said to me: "I make speeches out of the window;" that is, he talked to the people of Belgium instead of to the Parlia ment. Whatever the war did to Belgium, it ended with a bigger and stronger Co-operative Movement than had existed before. Another effect of the war was on trade unionism. In 1914 the trades unions had 160,000 members; in 1921 the membership was 730,000. In 1914 the Catholic unions had 80,000 members; in 1921 they had 140,000 members. War, if it does bring the exploit ers of the people to the top, at least exposes the wiles of the exploit ing system, and prompts the people to know that they must get together to protect themselves. No Credit The chairman of the board of directors of an English co-operative society said to me: "We will not give credit; we would sooner give the member the money outright than to give credit." As a result of this policy the society has so much money in its treasury that when un employment comes it is glad to have members draw out some of it. They spend it with the store, and so in crease the turnover. A STORY IN COAL By CEDRIC LONG Lehighton, Pennsylvania, is a small railroad town in the Lehigh Valley, between Wilkes-Barre and Allentown. The Lehighton Co operative Association, a society 95 per cent railroad men, was hitched up with the ill-fated "National Co operative Association" that went bankrupt in 1920. Early in 1921 the little association in Lehighton found itself stripped of the $11,000 capital with whic'h it had started business; the stock of goods in the store was worth only $2,600, the receivers for the Hoboken fiasco were suing them for the debts of the wholesale, and the majority of their members had lost confidence in the Co-op, and were trying to find a method of getting back some of the money they had invested. Co-operation in Lehighton looked like a 100 per cent lost cause. But there were two assets that these 385 shareholders and the rest of the town had not figured on. The store had a live young manager who not only knew the grocery business from several years of experience in the chain stores, but who likewise CO-OPERATION 79 was a thorough Co-operator at heart. And the directors of the as sociation, under the leadership of W. D. Hontz, Wm. Begal, Wm. Smo- yer and the other officers, were men who refused to acknowledge that a discouraged membership, the loss of their capital, and a lawsuit meant bankruptcy. Therefore, business went on as usual. But "business as usual" did not satisfy such men very long. A bold step forward was necessary if Co operation in Lehighton was to win back its lost prestige. And here begins the story in coal. There are three or four coal deal ers in this town. They all waxed fat off the coal business. Therefore the directors of the co-operative began to investigate, and they found that the coal consumers were being robbed. The Lehigh Valley Coal Com pany and other large companies re fused to sell them coal. The men from Lehighton tanked up their Fords with more gas, began a sys tematic tour of the coal fields, and finally came upon a little independ ently owned colliery, where the di rectors were already assembled to decide whether they had not better shut down for lack of business. The two directorates, one looking for a customer, the other looking for coal, talked business, and soon came to an agreement. How do you start in the coal busi ness without capital? These men did not bother with such abstract questions; they met in turn each difficulty as it came along. Having ordered one car of coal, a few of the Co-operators signed personal notes at the bank and paid for the car. Having no place to put their coal, they went to a fellow townsman who owned a plot of land near a railroad siding, and bought the land for a promise of future payment. Then, with cement and sand and stone, and all the volunteer labor they could use (railroad men get long vacations and have much leis ure time these days) they built four large, open bins near the siding. A portable elevator which would carry the coal from the car into the bins and from the bins into a truck, was procured, just as the coal had been, by a small note and easy payments. Meanwhile the freight question came up. Lehighton is a Lehigh Valley town. Yet all the coal sold there was being brought in over the N. J. Central. The Co-operators went to the freight agent of the Lehigh Valley. "We're workers on the L. V. R. R. We are buying coal and we want to bring it in over our own road. What can you do for us?" The agent gave them a low freight rate, and a few days later the same railroad company sent around a man who offered them coal scales at cost, to be paid for as soon as the money was available. And so started the Co-operative coal business April, 1921. The pri vate dealers had been selling 2,000 pounds to the ton. The new dealers sold 2,200 pounds to the ton. The private dealers had been making more than $4 a ton profit. The Co- operators lowered the price be tween $2 and $3, gave the custom ers the extra 200 pounds, to which they were entitled, sold the highest quality coal instead of the mixture of slate, dirt and coal that others sold, and altogether saved the con sumer about $4 on every ton of coal bought. By the end of the year the Co operative Association had sold 97 carloads (4,200 tons) of coal, they had paid for the elevator, owed nothing to the bank, owned their own land, their own bins, and had paid off one-third of the value of their new coal truck. The inde pendent coal company up country had given up all thought of closing their colliery, and many of the other coal companies in the same district had come around trying to sell coal to the Co-operators they once de spised. Two men are employed reg ularly getting coal to the customers, 80 CO-OPERATION CO-OPERATION 81 and the Co-operative Association is doing the largest coal business in town (more than 10 cars a week on the average). The Association has saved the people of Lehighton over $14,000 by reducing the price and giving the long ton. So begins the story. But Co-oper ation never stops at one commodity. A few weeks ago these same Co- operators decided that milk at 14 cents was much too expensive for their town. They called a meeting and talked about starting in to dis tribute milk. Next day the private milk dealers, seeing the Co-opera tive coal truck rushing about town, decided to take the warning, and milk dropped to 12 cents. A few weeks later the Co-opera tors decided that they wouldn't charge 13 cents for bread which cost them only 10 cents. They sold at 11 cents. The baker threatened to deprive them of bread altogeth er; and he was the only baker deliv ering in Lehighton. But the Co- operators refused to heed the threat, kept the price at 11 cents, and when this baker stopped his delivery to them they imported bread from Al- lentown—and still sold at 11 cents. Furthermore, they promise that if the old baker ever comes back, he will not be able to get into the store! When the representative of The Co-operative League stopped at Le- highton and went to the store he found many of the directors and several of the other members busy out beside the garage. They were just nailing the last boards up against some fifty tons of ice. Last year the private ice dealers charged the store $300 for ice; this year the members hauled and stored their own ice, and the total expense was less than $70. Meanwhile, the store is holding its own, despite hard times, and al though unemployment has played havoc with its business, there is a slight saving each quarter. The surplus-saving from the first nine months of the coal business amount ed to $4,347.26. None of the banks in Lehighton is paying more than 3% or 4 per cent interest this last year, and the First National paid no interest what ever. The Lehighton Co-operative Association, meanwhile, paid 6 per cent. For, although their $11,000 original capital was all lost (except a scant $2,600), their membership was quite disgusted with the whole co-operative business, and such other liabilities as lawsuits, united opposition of other merchants and chain stores, etc., had reduced their workingmen's organization to a laughing - stock about town, yet there still remained the solid foun dation stones upon which true Co operation is always builded, and which make failure impossible; effi cient and devoted management on the business side, and determined, wise, self-sacrificing leadership on the part of the directors. Financial liabilities never interfere with the growth of a Co-operative organiza tion which has these two assets. THE PURITY OF PATERSON Paterson, New Jersey, has 136,000 population. It is the home of one of the most successful Co-operatives in the East. In the city which has been the battleground of many spectacular industrial struggles between the silk mill owners and the workers, where labor has been beaten time and again in the attempt to better its conditions at the point of production, a remark able organization of consumers has been perfected, which has won much ground in its steady fight against the profit system. Two thousand con sumers are members and owners of a Co-operative society that is supplying $250,000 worth of bread and $100,000 worth of meat yearly, to the consum ers of Paterson and vcinity. The three auto trucks of the Purity Co operative Society daily deliver bread to towns within a radius of many miles of Paterson, while two wagons make deliveries in the city. Hun dreds of miles are daily covered by the vehicles of the society. A visit to this co-operative society stuns one with the size of the un dertaking. The bakery of the Purity Co-operative Society is a large, up-to- date three-story plant, equipped with the latest machinery. The Co-opera tive is the next to the largest bakery in Paterson; its property and equip ment are worth $150,000. The great double ovens daily bake 5,000 loaves of bread, and 24,000 rolls. Gigantic machines automatically weigh, sieve and mix 500 pounds of flour at a time. The ovens are located on the first floor, the mixing machinery on the second floor, and the third floor is used as the storeroom for flour. When a representative of The League visited the plant there were thousands of bags of flour piled up in orderly fashion all over the huge storeroom. There were a dozen car loads of flour on hand), valued at $22,000. The co-operative bakery consumes a carload of flour every week. Flour is secured direct from the mills, and the co-op, gets the bene fit of all discounts by paying cash. The bakery distributes its product direct to consumers by means of house to house deliveries, and through sales at its bakery. A branch store is maintained, where bread and gro ceries are sold. The bulk of the trade, however, is through sales to retail stores, both private and co operative, in Paterson and outlying towns. Profiteering by stores is pre vented by the bakery, which fixes the selling price of bread. True to its name, the co-operative turns out the purest of products. In addition to its model bakery, the Purity Co-operative Society operates the cleanest, and perhaps the largest butcher shop in town. The turnover of the butcher shop last year was $90,000; and this year it is doing business at the rate of $100,000. A glance at the shop reveals a scrupul ously clean store, lined with spotless tiling. Sanitary chicken coops are bult into the building, as the tem porary abode of the many live chick ens kept on hand to be slaughtered for the kosher trade. The conditions of labor are import ant. Forty-two butchers and bakers are employed at the union scale of wages. The weekly wage bill amounts to $1,600. The bakery is run In shifts, but no one works more than eight hours a day. Though bakeries are usually sweat-shops, the co-opera tive bakery is sanitary and an ideal workshop. A shower bath is provid ed for the workers' use at the end of their shift. Since current prices are charged in most departments, a large surplus- saving is on hand at the end of each year. It is interesting to note what use has been made of this. When the society was organized in 1905, it sold goods at cost price, plus a slight over head charge. Whatever remained was set aside for the growth of the enterprise. By this means, the co operative's resources have grown, un til they are now worth $175,000, though it has only $8,000 subscribed in capital stock. During the war, the Federal Food Control Board compelled the co-operative bakery to sell at the prices charged by the profiteering bakers. This compelled the co-opera tive to adopt the Rochdale system, in order to return the difference be tween cost and selling price to its con sumers. Coupons were printed on the bread wrappers, and these coupons were redeemable at the end of the year. The members of the society were not long content with this arrange ment. They felt that the money saved through their co-operative en terprise should be used for the social good, instead of being distributed back to the consumers as savings-re turns. Knowing of the social and ed ucational activities carried on by the bakeries in Belgium, they resolved to put the earnings of the society to work for the good of all the members. Accordingly they abolished the "divi- 82 CO-OPERATION CO-OPERATION 83 dend system" at the end of 1921, and they now plan to invest the earnings in a large vacation farm where the children of the members may enjoy a vacation of two weeks, with good food, air and sunlight, free of charge. The enormous bakeries of Belgium, with their educational, recreational and insurance activities radiating from them, are thus being used as a model by the Paterson Co-operators. The story of this society is not complete without some mention of its educational activities. Last year $1,- 000 was contributed towards educa tional work. On April 7th, of this year, the first public mass meeting of a series of several scheduled, was held by the society in the auditorium of one of the high schools. Over 800 people were present. Cedric Long, of The Co-operative League, William Kraus of the Bergenfield, N. J., co operative society, and Abraham Ship- lacoff, President of the Brownsville Co-operative Bakery, of New York, spoke before an enthusiatic audience on the meaning of Co-operation. The co-operative society is the nuc leus of all the forward-looking groups in Paterson. There has not been a strike in Paterson since 1905 that has not been supported whole-heart edly by the co-operative bakery. Only last month, three tons of flour were donated by the Purity Co-operative Society to the mill strikers of Rhode Island. "What is everybody's business is nobody's business," says the cynic who is opposed to collectivism in any form. But the two thousand mem bers of this co-operative society are the driving and directing force be hind this vast enterprise. They elect their officers, and at their quarterly meetings, they fix the policies that govern their business. Two Boards of Directors are elected by the mem bership; one for the management of the bakery, and the other for the butcher shop. The efficient and loyal manager, Simon Rothman, is a valu able servant of the society. Group solidarity and the technique of indus trial democracy are being developed by means of this co-operative enter prise, which is slowly but surely dis placing private business in Paterson. PRACTICAL ADVICE N. Y. CREDIT UNIONS UNITE The New York State Association of Credit Unions was formed in 1921, in recognition of a need of a representa tive body which would act as a clear ing house for the discussion of prob lems aggravated by the steady in crease in the growth of credit unions in New York City. Its object is (1) to spread the doctrines of the credit union movement more generally a- mong the public, (2) to furnish a forum for discussion of problems of mutual interest to its members, (3) to study proposed and to prepare needed legislation affecting the credit union movement, (4) to bring the or ganizations in the State of New York into closer relations with each other, (5) to foster measures looking to the organization of a central credit union, and (6) to do any and all things which may be of benefit to credit unions. The union is beginning to function actively through its especially ap pointed committees. The Legislative Committee will, at the next general meeting, submit a report on suggest ed amendments to the New York State Credit Union Law. The Pub licity Committee, with a view to spreading the growth of credit unions, is canvassing various groups in New York City where the organi zation of credit unions is considered feasible. If the results warrant it there will be a systematic effort to follow up the correspondence by per sonal contacts. The Advisory Com mittee is compiling an accounting sys tem and interest tables for which there is an urgent need. ARRANGEMENT OF THE STORE Make the entrance easy. Keep the windows clean and attractive, and display goods in an uncrowded manner. Change the display each week. Limit the display to six lines, three large and three small. A bold center is attractive. Use price tags and smart descriptive signs. Do not dress too close to window glass. If the window is high, fix a sign below it outside or a bulletin board on which you can advertise daily any specials you may have. Fix a ringed curtain of bright material on a rod four or five feet from the door of the window, if there is one. In the case of a high window a strong shelf might be fixed above the curtain rod for a display. Do not keep out the light from the store by high stacks of things in the window. No set rules can be laid down for the arrangement of goods, but usu ally the goods that are wanted by the largest number of customers are placed on shelves near the front. Cereals should be on top shelves, soaps, etc., on bottom. Salt, sugar, etc., should be \y2 feet above the floor. Canned goods and bottled goods may be on the middle shelves. Keep fruits, vegetables, soups and other canned goods together. Dairy goods should always be in a sepa rate department. Fancy and staple articles may be near the front or on special tables near the front for dis play. Put slow movers on a special table in the center, and change fre quently. Systematic arrangement prevents confusion and untidiness. Aim to make the store the most at tractive in town. Goods s'hpuld be plainly priced. Sectional price tags are useful. The shelving should be no more than 6 feet high to make it easy to reach goods. If possible have the shelves deep enough to take a whole case of goods. Fixtures should be simple, but good, serviceable and kept clean. The scales and cash register are best near the center of the store. Bulk goods should be kept under the shelves or counters near the scales. Some stores use racks in the center, made of several shelves, if crowded for space. If house furnishings are kept they should be in one part by themselves. The store room must be well or ganized. If possible make similar arrangements of goods as in store itself. Do not leave broken cases around in store room. If you have any extra space use it for advertising purposes for co operative mottoes, and do not waste a bit of space. Have a bulletin board in a conspicuous place for special notices and news items. A table for literature and a few chairs are desirable. SOUND ADVICE FROM THE CANADIAN UNION I note that many isolated societies in your country have been failing during the last six or eight months. Many years' experience of co-oper ative activities in this country has taught me that if societies do not associate for mutual counsel and profit by the experienc'e of their predecessors, it is hopeless to ex pect satisfactory development. Our great trouble is in bringing home this fact to people responsible for the administration of co-operative societies. This remark applies not only to those outside the organized movement, but even to some inside. In some cases boards of directors persist in blundering on, but make a practice of approaching us when they are in trouble, when we are then expected to work miracles. Doubtless you have noticed that at the Congress of the Canadian so cieties last year the delegates were determined upon satisfactory busi ness policies being followed, and that central supervision should be exercised. Now, the Union is ask- 84 CO-OPERATION ing for monthly reports which are being summarized and circulated the following month, with informa tion, which may be contributed by any society, of general advantage. We are hoping that to become ac quainted with weak spots as they arise and make representations thereon before losses accumulate. My feeling is that one of the greatest stumbling blocks to co operative solidarity is the non-co operative manager who seeks to dominate his board and is jealous of influence being exercised by the Union upon his directors; and yet it is in such cases that independent guidance, advice and information is most needed if the society is perma nently to remain in the field. In the early days in the Move ment in Europe many serious mis takes were made, but Co-operators had the common sense to profit by their experience and endeavor to avoid them in the future. There would seem to be a serious defi ciency of this policy in North America. It seems very necessary on this continent to impress upon would-be Co-operators in the early days how little they know and how much they have to learn in applying the principles to which they are be coming attached.—George Keen, General Secretary the Co-operative Union of Canada. A BADLY ADVISED RAIL BROTHERHOOD The United Brotherhood of Main tenance of Way Employees and Rail way Workers, with headquarters in Detroit, was put in the hands of a re ceiver by order of the Federal Court according to advices recently receiv ed. An order restraining the Broth erhood from withdrawing its bank deposits has been issued. The re ceiver has been ordered by the Court to take possession of all property of the Brotherhood including the money on deposit in the Brotherhood of Lo comotive Engineers' Bank at Cleve land. This is a part of the sad story of one of the railroad unions that went into what it called "co-opera tive" production. This magazine has already reported the failure of its various factories for the manufacture of gloves, underwear and hosiery. Liberal magazines and socialist publi cations found great satisfaction in these ventures into manufacturing and gave them much approval and publicity as great "co-operative un dertakings." The Brotherhood had an exhibition of its products at the "Farmer Labor Co-operative Con gress" in Chicago in 1920, and their representatives were among the cen tres of interest. The one and only voice that ad vised this Brotherhood of its mistakes was the Executive Board of The Co operative League. It went so far as to have a representative of the Board secure an interview with the promo ting officials of the Brotherhood at Chicago and again at Syracuse, N. Y., to explain to them that the venture, which they were calling "co-opera tive," was not co-operative, to warn them of its defects and to show them how they might make it succeed. But since all of the labor, socialist and re form papers, and organizations were boosting their plan, they turned a deaf ear to The Co-operative League. The losses to this one union amount to something around $1,500,000, an other "co-operative failure" was reg istered, and now as a result, the whole organization suffers the humiliation of having its tangible assets attached by a court order. We still continue of the opinion that, as there is an organization of experts such as The League provides, whose business it is to know about the technic of co-operative adminis tration, their advice should be sought. But when in the interest of the work ers we are compelled to force our ad vice upon an enterprise, calling itself "co-operative," that enterprize will do wisely to give most serious consi deration to that advice. CO-OPERATION 85 NEWS AND COMMENT CO-OPERATIVE BAKERIES FEED STRIKERS The co-operative bakeries of Massachusetts have made provisions for supplying bread free of charge to the striking textile workers of Pawtucket Valley, Rhode Island, to carry on their struggle against star vation as long as their fight lasts. Three months ago the absentee owners of the cotton mills of Rhode Island decreed a 54-hour week and a 20 per cent reduction in wages, on top of a previous reduction of 22 V& per cent. There seems no alterna tive for the workers but to leave their looms as a protest against starvation wages. At once the co-operative bakeries in Massachusetts got busy. Two thousand loaves of bread were do nated by The Labor League Co operative Bakery of New Bedford, Mass. Then the Conference of Massachusetts Co-operative Baker ies swung into action. The confer ence is a working federation of seven prosperous co-operative bak eries, organized principally among the Jewish consumers of Massachu setts, though they are open for all consumers to join. Provisions were made by the Con ference for a contribution to the strikers of a steady supply of bread baked in the bakeries of the co operatives. The New Bedford Co operative Bakery is supplying 2,000 loaves each week, the Brockton bakery 1,000, the Worcester bak ery has already sent 500 loaves, and will send more, the Providence bak ers sent 1,000 loaves, and the co operative bakeries of Lynn, Haver- hill and Lawrence are all giving their share. Contributions secured among the Jewish consumers in Providence, Boston and New Bed ford, in order to enable the co-oper ative bakeries to turn out sufficient bread for the strikers. From Paterson, N. J., came 500 bags (three tons) of flour, as a do nation from the Purity Co-operative Bakery. This baitery has also sup plied twelve cases of canned soup. Besides the thousands of mill strikers in New England who are now being supplied bread free of charge by the co-operative bakeries of the workers, the Conference of Co-operative Bakeries of New Eng land is also sending a carload of flour for famine relief in Russia. A vigorous program of co-opera tive education is going forward. Educational meetings are held bi monthly. Arrangements are being made for literature, speakers, and movies to be supplied by The League. Newspapers in Massachusetts have given much publicity to the relief work of the co-operatives. Photographs of the many truck loads of bread sent to the strikers by the co-operatives have appeared in the metropolitan press. Through the relief work carried on by the co-operative bakeries, many con sumers are learning the value of Co operation, both as a commissary during strikes, and as a means of eliminating profit in the supply of the necessities of life. UTICA BAKERY GROWS The Utica Co-operative Society, of Utica, New York, made progress dur ing the past year, though it felt the pinch of hard times. The sales for 1921 were $105,597, or a decrease of $12,000 over the sales of the previous year. But retail prices fell at least 30 per cent during 1921, so that even though the value of sales fell off, the amount of business done was larger. There was a surplus-saving of $2,021 for the year's operations, which was distributed to the 375 members as in terest on shares. A reserve and edu cational fund were also put aside. The most encouraging thing about the Utica Society is the steady growth of its bakery business. In January, 1921, its bakery sold 13,281 86 CO-OPERATION loaves of bread. The demand for Co op. Bread grew steadily, until in June they were selling 25,319 loaves. By the end of the year, the monthly sales were 28,774 loaves. In all, 156,643 loaves of Co-op Bread were distri buted in 1921. The society owns $41,540 worth of real estate; owns machinery and fix tures valued at more than $7,000, and has $15,000 worth of goods in stock. CO-OPERATIVES AND THE BUSI NESS DEPRESSION Reports coming in from all over the country indicate that co-opera tives are weathering the financial storm that has brought bankruptcy for many private businesses. While general business bankruptcies, ac cording to R. G. Dun & Co., in creased 141 per cent during the first half of 1921, as compared with the same period of 1920, there does not seem to be any sign that co-opera tives are as hard hit as profit-mak ing business. Here are three bits of news reach ing the office of The League the same day, from three different sec tions of the country, showing how Co-operation is holding its own. From L. S. Herron, of the Farmers' Educational and Co-operative Union of Nebraska, comes this comment: Our Farmers' Union stores are mostly pulling through all right, though many of them are burdened with debt. There have been only two or three outright failures in the whole state among the 125 stores. Some of the stores have gone right through the depression without losing a dollar, and even making good surplus-savings all the time. Loyal patronage and good manage ment will turn the trick anywhere. At the same time David Diggory, Secretary of the Society in Pueblo, Colorado, which is doing good edu cational work among its member ship, writes us as follows: We are doing as fine as can be expected. We are holding our regular weekly meet ings and they are productive of good re sults. We feel sure of the ultimate end. From Little Rock, Arkansas, we learn from L. W. Lowry, the Man ager of the Co-operative Laundry: We are doing better than the other fel lows. We are adding new customers each week and keeping our old ones. Although all classes of business have felt the general depression, yet we have held our own. We feel every confidence in our continued suc cess this summer. WAUKEGAN EXPANDS The Co-operative Trading Company of Waukegan, Illinois, which supplies one-fourth of the community with groceries, meats, milk, etc., issued a good report on last year's business. The total business done in the dairy, grocery and meat departments, amounted to $157,559 during 1921. On this amount there was a surplus saving for the membership of $5,594. It is interesting to note how this was distributed. The Reserve Fund re ceived $550; the Educational Fund $500, and a contribution of $150 was made to Russian Famine Relief. There remained a balance of $4,344, which was distributed to the mem bers as a patronage savings-return. Eight per cent savings were paid on milk purchases. The dairy is taxed to its fullest capacity, to meet the demand for service. It is planned to erect a new dairy building. The Waukegan society is one of the best in Illinois. It is affiliated with The Co-operative League and with the Co-operative Central Ex change, of Superior, Wisconsin. MOUNT OLIVE'S RECORD Mount Olive, Illinois, also has a fine record. The report for the last six months of business of the Mt. Olive Co-operative Society is now at hand, showing gross sales during that per iod of $39,104, an increase of $6,080 over the previous half year. The average sales per month of this so ciety amount to $6,517. Its surplus- savings during the last six months totalled $1,808. A 3 per cent savings- return was paid to members in addi tion to 3 per cent interest on capital; $830 remains as undivided savings. This society issues a lively bulletin to its members every month, and is doing good educational work. CO-OPERATION 87 BLOOMINGTON BUYS BUILDING One year ago the Blpomington, Il linois, Co-operative Society moved in to a building it had purchased. Mak ing allowances for the gradual ex pansion of the business, it was be lieved that the space would be ample to accommodate the store for many years. Within a year, the business had increased 60 per cent, and it was imperative to find larger quarters. The society has now bought the property next door for $38,000, and with the new establishment it will be one of the largest retail stores in town. The annual business of the society in 1921 was $161,000. The store handles groceries, fresh and cured meats, men's clothing and furn ishings, shoes, kitchen utensils, and coal. Since the society was organized, four years ago, it has returned to its members in savings-returns the en tire amount of their investment, and 18 per cent in addition. The society has paid an average .savings-return each year amounting to 28^' per cent of the invested capital, in addition to 4 per cent interest. The Rochdale principles are strictly adhered to. The Bloomington Co-operative So ciety has the support of organized la bor but like all consumers' co-opera tives, it is open for all consumers to join. It has a membership of 500. Though thousands of dollars were lost in Bloomington by dupes who sub scribed to fake co-operatives, this genuine co-operative society, affili ated with The Co-operative League, warned its members and saved their money. The society has carried on constant educational work to spread the message of Co-operation to all consumers. GALESBURG NEVER PASSED A DIVIDEND The Galesburg, Illinois, Society is one of the oldest co-operatives in Il linois, organized in 1910 and incorpo rated in 1911 under Illinois laws. It organized in Chicago, before Illinois had a law providing for co-operative societies, so it incorporated under the regular Corporation Act, and chang ed to the Co-operative Act as soon as it became a law. It had stores in Ke- wanee, Quincy, Chicago, and Staun- ton, Illinois, and local organizations from Florida to Nebraska. At a stockholders' meeting held some ,six or seven years ago, the na tional organization was dissolved and the Galesburg store retained the cor porate name, Consumers Alliance Na tional. During the whole period the so ciety has never passed a dividend, and it has lost very few members. August 14, 1919, the Galesburg So ciety opened her second store, and on April 15, 1920 it opened their third store. Last year the Knox County Co-operative Society was formed for the purpose of selling fuel, but the stockholders felt that even though not competitive, there was no need of two distinct co-operatives in the city. An amalgamation was therefore formed, and the name of the com bined organization was changed to The Galesburg Co-operative Society. LECTURES ON REBUILDING THE WORLD The Get-Together Club of the Com munity Church of New York has held a series of lectures on "Rebuilding the World" in which Co-operation played a large part. The lectures were held at the Community Church, Park Avenue and 34th Street, as fol lows: January 10, "Meaning and Objects of Consumers' Co-operation," Cedric Long; February 14, "European Co-opera tion as I Saw It," Agnes D. Warbasse; March 14, "Snap-shots of Co-opera tors at Work in the United States," (Illus. Lecture), Mabel W. Cheel; April 11, "Co-operation as the Road towards Real Internationalism," Jas. P. Warbasse; May 9, "How to apply Co-operative Effort to Community Church Activ ities," Cedric Long. 88 CO-OPERATION NEW PLANT FOR FRANKLIN CREAMERY The Franklin Co-operative Cream ery Association, of Minneapolis has outgrown its present quarters in less than one year. When the association began business March 25, 1921, no one thought that they would need a larger plant for a long time. But the success of the co-operative creamery far exceeded the expectations of the Co-operators. Whereas the output of the plant amounted to eighteen wagon-loads in the beginning, it now takes seventy-four wagons and trucks, loaded to capacity, to supply the customers. The capacity of the plant is twice as large as it was last year, but is not sufficient to meet the growing demand. It now has 22,000 customers and shareholders. A new plant is about to be erected on the North Side of the city. The new building will be 122 by 145, and will be two stories high. It will be twice the size of the present crowded quarters. The construction work will be carried on by the Union Construc tion Company, reorganized by the building trades of Minneapolis. OKLAHOMA FARMERS SAVE Co-operation is the great help in times of adversity. Hard times on the farm has done more to promote Co operation than all the talking in the country. Farmers who used to "get along well enough" by themselves are now anxious to co-operate with their neighbors. The farmers of Oklahoma have found that Co-operation pays. They saved $30,000 last year on pur chasing a million pounds of binding twine through the Farmers' Ex change. They bought co-operatively over 400 cars of coal at a saving of $3 a ton. The 15,000 bushels of seed po tatoes they needed cost them $22,500 less than the best price from private dealers, and a further saving of $16,- 125 was made on 43 cars of eating po tatoes purchased this fall. The farm er should be a Co-operator if, for no other reason than that he spends all he earns. CO-OPS AID RUSSIAN RELIEF Co-operatives all over the country are contributing money or goods to the relief of famine in Russia. The Co-operative Central Ex change, of Superior, Wisconsin, at its recent annual meeting voted to con tribute $600 from its treasury, for Russian relief work. From far away Idaho comes word that the Co-operatives are ready to do their part toward stemming the tide of death and suffering in famine- stricken Russia. All profits on sales throughout the entire month of Feb ruary were pledged for purposes of Russian relief by the Consumers' Store of Boise, Idaho. Several societies have voted to de vote all their surplus-savings to Rus sian relief, instead of distributing them as savings-returns. A NINETY-YEAR-OLD CO-OPERA TIVE The Lockhurst Lane Co-operative Society of Coventry, England was founded in 1832, and claims to be the oldest co-operative now in existence. The society came into existence with nine members, who finally invested five pounds each by paying in from two to six pence weekly. Member ship was to be limited to forty per sons and profits were to be divided equally, irrespective of the amount of each member's patronage. The an nual trade for 1832 amounted to $3,- 500. For many years it ran on principles different from the Rochdale societies, which came into existence much later. As it was expected by the secretary of the society, the society "was as much like a co-operative society of today as chalk is like cheese." In 1865 it was decided to change the pol icy to conform with Rochdale1 Co operation, and it has been conducted as a Rochdale co-operative since. Little progress was shown until the society completely changed its tac tics and adopted the Rochdale prin ciples. Since then it has experi enced a remarkable growth. By 1900 it had a membership of 670, a capital CO-OPERATION 89 of $70,000, and an annual trade of $82,500, on which there was a return to members of about $15,000. Within ten years more progress was shown. By 1910 there were 1,524 members, $130,000 in capital, an an nual trade of $215,000, on which there was a saving for members of $40,500. In 1920 the society had a membership of 4,116, $220,000 in capital, its trade for the year amounted to $850,000, and returns were made to members of $65,000 for the year. The society owns six grocery shops, a coal wharf, its own stables for its vehicles, a shoe shop, clothing shop, three dry goods shops, a vegetable store, a farm, and a bakery. In 1920 the bakery turned out a quarter of a million 4-pound loaves of bread, or a million pounds of bread. The land and buildings of the society are val ued at $85,000. The society main tains a bank for its members and has cottages for rent. For ninety years this co-operative has been serving the consumers, and each decade finds its membership larger, its resources stronger, and its business activities increased, while private business in contrary is shrink ing in volume every year. THE FUTURE OF IRELAND George Russell, the intellectual leader of the Irish Co-operative Move ment, has recently made this signifi cant statement: "I should prefer the stability of national life to be main tained by the existence of such bal ancing forces in society rather than by the artificial methods of senates and venerable ancients to offset the vehement radicals elected to move democratic assemblies. No govern ment in the world has hitherto trust ed the people it governs. I am suffici ent of an anarchist to have a dread of the state which is rarely a fountain of lovable or desirable life. I hope to see in Ireland, some thousands of self- governing economic communities, minute nations in fact, leaving but little for central government to do for them." INSURANCE IN GREAT BRITAIN The Co-operative Insurance Society of Great Britain, the joint Insurance Department of the English and Scot tish C. W. S. is steadily crowding out the private insurance companies. In 1921 the C. I. S. took in 19 per cent more in premiums than in the pre vious year. The total assets of the business amount to $10,000,000. Al most every conceivable variety of in surance is written by the society. The industrial life department alone issues 10,000 policies every week. The steady growth of the co-opera tive insurance business has alarmed the profiteering insurance companies. Agents of the latter companies go out of their way in slandering the Co-operative Insurance Society. Anon ymous leaflets have been discovered, which misrepresent and belittle the C. I. S. But "every knock is a boost," and more and more of the insurance business of Great Britain is being •swallowed up by the C. I. S. FRENCH DRINK WINE The French Co-operative Whole sale Society (M. D. G.) has 200 tank railroad cars for bringing wine from the vineyards into their wine vaults in Paris. Last year they spent 32,- 000,000 francs on wine, and con sumed 8,000,000 gallons. BERKS, PENN., SAVES MONEY Twenty-two thousand dollars were the savings gained by Berks County, Pa. Co- operators during the year 1921. This in cludes 12 enterprizes. That Bag of Corn Meal has grown some, as reports show. The new year adds another enterprize to the list, the Workers' Credit Union of Berks County. It started with $70.00 cap ital and by the end of the first six weeks had $1,050 capital paid in. It had out loans amounting to $860, used to pay off loan sharks, save an increase in price of land to a member by prompt payment on it, buy 50 barrels of flour for a co-opera tive bakery at a substantial saving, etc. In spite of the industrial depression, pro gress was made during the year, to be an example for other workers to follow. Reading, Pa. FRED M. MERKEL. 90 CO-OPERATION CORRESPONDENCE JACKSON, TENN., PROSPERS We have a co-operative society here that I feel very proud of. March 1, 1922 was the end of our second year's business. Our first year's business was $115,000, and our second year was $114,500. (With the fall in prices during that time, this repre sents a gain in business done.) We find a great deal of good information in the mag azine CO-OPERATION. The society has sent out checks repre senting a savings-return of 2 per cent on purchases from July 1, 1921 to December 31, 1921, and interest at 3 per cent on capital stock of the Society. We are pay ing to the shareholders about $1,200 in savings-returns and interest. Our pros pects are bright for the future if we only remain loyal to the cause. It will only be a short time until our lodge room will pay over half of our rent bill, and of course that will be that much more to go into our surplus-savings. The only reason our busi ness is not twice or three times as large as it is, is because the producers and consum ers are not loyal to their own interests. There are other individuals that they pre fer giving their money to, rather than keeping it themselves. Now for the sake of those that toil, let us get together, stay together, and pull to gether for the cause of Co-operation, for it is the quickest and surest way for us to reap the full benefits of our labor. Jackson, Tenn. E. S. MANLEY, President, Madison Co-operative Society. HELP A FRIEND Make real Co-operators by getting sub scriptions to this magazine. People who understand Co-operation are the hope of the world. THE EDUCATED SECRETARY OF THE NEWPORT SOCIETY Having been elected Secretary of the Union Co-operative Association, and desir ing a better knowledge of the Movement than I now possess, in order that I may render to my fellow Co-operators a more efficient service, I am taking this oppor tunity to ask of The Co-operative League such assistance as you may be able to fur nish me along the lines of educational lit erature to myself and suggestions for the betering of Co-operation in this city. We are considering the issuing of a bi monthly mimeographed letter to all of our members, which should be in the nature of an educational course. Any suggestions you may advance will be gratefully re ceived. TIMOTHY J. McCAFFREY. Newport, R. I. STATEMENT OF THE OWNERSHIP, MANAGE MENT, CIRCULATION, ETC., REQUIRED BY THE ACT OF CONGRESS OF AUGUST 24, 1912 Of CO-OPERATION published monthly at New York, N. T. for April 1. 1922. State of New Tork County of New Tork, ss. Before me, a notary public in and for th» Stato and county aforesaid, personally appeared J. N. Perklns, who, havlne been duly sworn according to law, deposes and says that he Is the busi ness manager of the CO-OPERATION and that the following is, to the best of his knoweldge and beT lief, a true statement of the ownership, manage ment (and if a daily paper, the circulation), etc., of the aforesaid publication for the date shown in the above caption, required! by the Act of August 24, 1912, embodied In section 443, Postal Laws and Regulations, printed on the reverse of this form, to wit: 1. That the names and addresses of the publisher, editor, managing editor, and businsss managers are: Publisher, The Co-operative League of America, 2 West 13th Street, New Tork City Editor, James P. Warbasse, 2 West 13th Street, New Tork City Mana&ine Editor, Albert Sonnlchsen, 2 West 13th Street. New Tork City Business Manager, J. N. Perkina, 2 West 13th Street. New Tork City 2. That the owners are: (Give names and addresses of individual owners, or, if a corporation, give its name and the names and addresses of stockholders owning or holding 1 per cent or more of the total amount of stock.) The Co-operative League of America, 2 West 13th Street. New Tork City James P. Warbasse, President, 2 West 13th Street, New Tork City A. P. Bower, Vice-President 2 West 13th Street, New Tork City Waldemar Niemela, Treasurer, 2 West 13th Street, New Tork City (Organization members, 1,000.) 3. That the known bondholders, mortgagees, and other security holders owning or holding 1 per cent or more of total amount of bonds, mortgages, or other securities are: (If there are none, so state.) None. 4. That the two paragraphs next above, giving the names of the owners, stockholders, and security hold ers, if any, contain not only the list of stockholders and security holders as they appear upon the books of the company but also, in cases -where the stock holder or security holder appears upon the books of the company as trustee or in any other fiduciary re lation, the name of the person or corporation for whom such trustee Is acting, is given; also that the said two paragraphs contain statements embracing affiant's full knowledge and belief as to the circum stances and conditions under which stockholders and security holders who do not appear upon the books of the company as trustees, hold stock and secur ities in a capacity other than that of a bona fide owner: and this affiant has no reason to believe that any other person, association, or corporation has any interest direct or indirect in the said stock, bonds, or other securities than as so stated by him. 5. That the average number of copies of each is sue of this publication sold! or distributed, through the mails or otherwise, to paid subscribers durine the six months preceding the date shown above is .......... (This information is required from daily publications only.) J. N. PERKINS, Business Manager. Sworn to and subscribed before me this 27th day of March, 1922. WALTER C. CAMPBELL, (Seal) (My commission expires, March SQth, 1922.) CO-OPERATION PUBLICATIONS OF THE CO-OPERATIVE LEAGUE HISTORICAL Per Copy 3. Story of Co-operation ................................................. $ .10 7. British Co-operative Movement ............................ '10 10. A Baker and What He Baked (Belgian Movement)...................... '.05 38. Co-operative Consumers' Movement in the United States............... .OB TECHNICAL 4. How to Start and Run a Rochdale Co-operative Society.................. .10 5. System of Store Records and Accounts................................ .50 6. A Model Constitution and By-Laws for a Co-operative Society........... .05 8. Co-operative Education. Duties of Educational Committee Defined..... .10 9. How to Start a Co-operative Wholesale................................ .10 27. Why Co-operative Stores Fail ......................................... .02 2. Co-operative Store Management ...................................... .10 14. How to Start and Run a Women's Guild................................ .05 Per 100 $6.00 6.00 4.00 4.00 2.60 1.00 MISCELLANEOUS 46. Producers' Co-operative Industries ................................... .10 11. Control of Industry by the People Through the Co-operative Movement... .10 12. Credit Union and Co-operative Store.................................. .05 34. Co-operative Movement (Yiddish) .................................... .02 43. Co-operative Housing ................................................. .10 1.T6 1.26 ONE-PAGE LEAFLETS (One cent each; 50 cents per 100; $2.50 per 500; $4 per 1,000) (1) Principles and Aims of the Co-operative League of America; (17) Do You Know Why You Should Be a Co-operator; (20) Why Loyalty Is Necessary; (21) Cost and Crime of Credit; (22) A Real Co-operator; (25) Resolutions Adopted by A. F. of L.; (26) Factory Workers, Co-operate!; (28) Do You Know About Co-operation in Europe?; (40) Have You a Committee on Education and Recreation?; (44) What Is the Co-operative Movement? Miscellaneous Educational Leaflets. MONTHLY PUBLICATIONS CO-OPERATION—(In bundle lots, $7.50 per hundred). Subscription, per year..........81.00 HOME CO-OPERATOR, 4 pages ........................................;....... $1 per 100 INTERNATIONAL CO-OPERATIVE BULLETIN (Pub. by The I. C. A.)...... .per year, $1.50 BOOKS The following books are recommended as containing the best discussions of the modern Co-operative Movement. They made be ordered through The League: Bubnoff, J. B.: The Co-operative Movement in Russia, 1917.......................... .$1.2B Faber, Harald: Co-operation in Danish Agriculture, 1918.............................. 2.7B Flanagan, J. A.: Wholesale Co-operation in Scotland, 1920............................ 2.00 Gebhard, Hannes: Co-operation in Finland, 1916...................................... 2.00 Gide, C.: Consumers' Co-operative Societies, 1921...................................... 2.60 Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, $2.00; paper bound ........................................................................... .60 Holyoake, George Jacob: The History of the Rochdale Pioneers........................ 2.00 Howe, Fred C.: Denmark, a Co-operative Commonwealth, 1921.......................... 2.50 Maxwell, Wm.: History of Co-operation in Scotland, 1910.............................. 2.00 Nicholson, Isa: Our Story ............................................................ .26 Powell, G. Harold: Co-operation in Agriculture. Macmillan .................... . 1 50 Redfern, Percy: The Story of the C. W. S............................................. 2.00 Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918....................... 2.BO Smith-Gordon: Co-operation in Many Lands, 1920...................................... 2.50 Sonnichsen, Albert: Consumers' Co-operation, 1919. Cloth bound, $1.76; paper bound... .76 Stolinsky, A.: The Co-operative Movement. In Yiddish........................ , 1 00 Webb, B. and S.: The Consumers' Co-operative Movement, 1921........................ 6.06 Webb, Catherine: Industrial Co-operation, 1917 ...................................... 1.BO Woolf, Leonard: Co-operation and the Future of Industry............................. 2.00 Woolf, L.: Socialism and Co-operation................................................ 2.00 "The Co-operative Consumer" and "Co-operation," III (1917), VI (1920), VII (1921).... 1.25 Transactions of Second American Co-operative Convention, 1920................... . 1 00 The People's Year Book, 1922...................................................... .75 (Ten cents postage should be added for books which coat more than $2.00, and five cent* for the smaller books.) THE CO-OPERATIVE LEAGUE (Member of The International Co-operative Allinace) 167 West 12th Street, New York An educational organization for teaching the history, principles, methods and aims of the Co-operative Movement and for the promotion of Co-operation in the United States. Join The League and thus help promote the educational work of the Co-opera tive Movement. Individual Membership, 1.00 a year. Subscribe for CO-OPERATION The Monthly Magazine of The League Keep in touch with the Movement, $1.00 a year. This Journal Is Not Published for Profit Co-operative Central Exchange Wholesale Grocers and Jobbers, Bakers We supply goods to Co-operative Societies ONLY We are owned and controlled by Co-operative Societies. We are organized to enable Co-operative Societies to do collectively what they cannot do indi vidually. Co-operative Central Exchange Offices, Warehouses and Plant: Winter Street and Ogden Ave., SUPERIOR, WIS. Co-operators' Ltd. Mutual Fire Insurance Co. is now writing insurance in State of Wisconsin. The Canadian Co-operator Brantford, Ontario, Canada The organ of the Canadian Co-opera tive Movement, owned by and con ducted under the auspices of The Co-operative Union of Canada. Published monthly; 75c per annum MOVING PICTURES and Stereopticon Lectures may be rented from CO-OPERATIVE LEAGUE OF AMERICA 167 West 12th St., New York City 1. "Soii« Examples of English Co-operation." Moving pictures of factory processes (two reels) ................................$5.00 2. "Co-operation in the United States." With 68 Stereopticon views ........... .$3.00 3. "The Co-operative Movement in Russsla." With 86 colored Stereopticon views... .$3.00 Co-operation in Scotland In no part of the world is Co-operation further developed, or more successfully practised than in Scotland. If you wish to keep in touch, read "The Scottish Co-operator" (Published Weekly) Subscription: Year 12 eh.: half-year, 6 sh. Address, 119 Paisley Road, Glasgow, Scotland THE PRODUCER Issued Monthly Price 3d. If you want to keep in touch with business, organization, administra tive affairs, and problems of the British Co-operative Movement, read THE PRODUCER. Published by Co-operative Wholesale Society, Inc. 1 Balloon Street, Manchester. Post free 4 sh. 6d. a year. The Trade and Technical Organ of British Co-operation. THE HOME CO-OPERATOR A four-page magazine for use in co-operative societies. Issued monthly, in bundles, $1 per hundred. Published by The Co-operative League Publishing Office, Willimantic, Conn. Al bert Sonnichsen, Managing Eitor. (WRMION A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in vol untary association, produce and distribute for their own use the things they need Published monthly by The Co-operative League, 167 West Twelfth Street, New York City, J. P. Warbasse, Editor. Price, $1.00 a year. Entered as second class matter, December 19, 1917, at the Post Office at New York, N. Y., under ,the Act of March 3, 1879. Vol. VIII, No. 6 JUNE, 1922 10 Cents VITAL ISSUES WHEN WILL THE REVOLUTION COME? Some people who call themselves "radicals" are working for the revo lution. But they can save them selves the trouble, the capitalists are doing it for them. And it is coming as suiely as this country is ruled by the powers of finance. The danger is that the working people will have no adequate economic system ready to take its place when the present system goes to smash. If the people really want things changed, there is a way to change things. It is by patiently going to work and educating themselves to un derstand economics and collective mass action, and how to carry on the affairs of the world in a different way. The trouble with the labor move ment in the United States is that it really approves of the present profit- making economic system. It believes in the doctrine of master and servant. Yet it proceeds to be a bad servant by asking always for more wages. More wages means higher prices, and higher prices demand more wages. This means periods of high prices and high wages, and periods of low prices and low wages. But the in crease of wages is given after prices go up; while wages start down before prices go down. So the wages get away from Labor as fast as they are made. Between times, enough un employment is thrown in to keep Labor docile. When prices are low Labor has not enough money to buy much of anything. When wages are high the workers put some money in the bank, and it is borrowed by the capitalists to speculate with and make prices 'high. Labor needs to get a new view of things. It needs to get a vision of something beyond wages. It needs to take a stand for a reorganization of the whole economic system upon a different basis, and then deliberately go at the job and reorganize it. When the workers get education in the fundamentals of economics and the significant events in history, they will then be found starting labor banks, credit unions, co-operative so cieties, housing societies, workers' schools, and people's houses. And out of the training that they will get in running these things will come the men and women who can carry on in dustries for the people. This is a long program. It means a long pull and a long look ahead. But it is the winning program. The old system is strongly rooted in in dustry, in the government, in the homes, in the schools, and in the very minds of the people. It will not be destroyed by men; it will destroy itself. Then should come co-opera tive reconstruction. 92 CO-OPERATION THE FARMERS' UNION TEACHES LABOR There are in the United States two national co-operative educational or ganizations, which are sound and well-established, and which have a history of accomplishments. These two organizations are The Co-opera-" tive League and the Farmers' Educa tional and Co-operative Union. All sorts of fanciful co-operative organizations have set themselves up from time to time for national recog nition. They have now all passed into limbo—or into a receiver's hands —and the field is left at last exclu sively to two true co-operative organ izations. The responsibility which rests upon them is very great. The Farmers' Union dates back to 1892. It has members in thirty states. It is a special organization devoted to the special industry of agricultural workers; but since that industry exists in every state, the Farmers' Union .should be found in every state. The important fact con cerning the Union, is that it is not a producers' organization, aiming ex clusively at getting higher prices or larger compensation for its members; but it devotes attention to educating the farmers to organize as consum ers as well as producers. It teaches them how to unite their bargaining power, not only in marketing the products of their labor, but also in purchasing their personal, farm and household supplies. This fact con nects the Farmers' Union with the great Co-operative Movement of the world. It is succeeding. It goes on while other farmers' organizations appear and disappear. It represents a sound application of fundamental principles. Other crafts of workers in the United States could learn a lesson from this organization. The great trade unions, which are giving atten tion exclusively to getting better pay and better conditions for their mem bers, should at the same time be carrying on education to teach these same members how to protect the purchasing power of their pay after they get it. Every trade union or ganization should be carrying on co operative education. Fake co-operative schemes have met with a cold reception whenever they have approached the Farmers' Union or Co-operative League so cieties; but they have had little trou ble in selling their gold bricks to trade unions—to the tune of fifteen or twenty million dollars in the last three years. The trade unions need to take a page from the Farmers' Union book and learn Co-operation. When every trade union has a com mittee on Co-operation and gives real attention to this subject, trade un ionism will place itself upon a much stronger basis than that upon which it now rests. THE FEDERAL RESERVE BANK About one-third of all the banking business of the United States is in New York State, and the New York Federal Reserve Bank conducts about one-third of the business of the en tire Federal Reserve System. The report of the New York Federal Re serve Bank is, therefore, a pretty fair index of the rest of the country. It has been generally assumed the federal banking system would elim inate the profiteers of the old bank ing systems, but as a matter of fact, it has not. The report for the year 1921 for the New York District shows that the net profit earned on the capital was 97 per cent. This may seem to be a good profit; but in 1920 the profit was 215 per cent. It is instructive to observe that the "profit on capital, surplus and de posits" was 3.4 per cent. Modern banking claims that the profits are made on the money put in by stock holders, but not on the money of de positors. The earnings for the year were $35,000,000; and the current ex penses for earing this amount were $7,000,000. It is in this matter of overhead that co-operative banking is able to show a great economy. This CO-OPERATION 93 is an added reason why the banking business of the European co-opera tives is forging steadily ahead. It not only gives the surplus savings to the patrons instead of to the investors, but it is conducted more economic ally. The striking fact about the Fed eral Reserve Bank is that it makes huge profits out of the depositors' money and gives the profits to invest ors. This is neither fair nor good business. It is not fair, because it is the method that creates a privi leged non-serving class; it is not good business, because it is the method that is upsetting the world, and if it goes on the whole structure of mod ern civilization is threatened. CO-OPERATIVE SOCIETIES SHOULD INCORPORATE We have frequently emphasized the importance of incorporating co operative societies. Some members are inclined to view the matter of incorporation as legalistic red-tape. They are mistaken. Incorporation of a co-operative society organized for business purposes protects each and every member against the pos sibility of being individually liable for the full amount of the debts of the association. A recent case in California (Web ster vs. San Joaquin Fruit and Veg etable Growers' Protective Associa tion, an unincorporated marketing association), illustrates the law on this subject. A suit was brought by a creditor of the association against the company and against the indi vidual members of the association. The creditor recovered an individ ual judgment against certain of the members. They appealed on the ground that they were not person ally liable for the debts of the co operative association. The case went to the California Court of Ap peals, which affirmed the judgment of the lower court, stating the law as follows: "While as between the members of an unincorporated association, each is bound to pay only his numer ical proportion of the indebtedness of the concern, yet as against the creditors, each member is individu ally liable for the entire debt, pro vided, of course, the debt is of such nature and has been so contracted as to be binding on the association as a whole. . . . An unincorporat ed association organized for busi ness or profit is in legal effect a mere partnership so far as liability of its members to third persons is con cerned ; and accordingly each mem ber is individually liable as a part ner for a debt contracted by the as sociation." The ruling that members of unin corporated co-operatives are liable as partners applies not only to Cali fornia, but to every state where the common law has not been modified by special legislation. In effect, it means that if a co-operative is rot incorporated, every member) may become liable to the full extent of the debts legally contracted by the association. CHEAPNESS NOT THE AIM It is gratifying to receive informa tion from co-operative societies that are wrestling with the pressing problems of the day, that cheapness is not their aim. The co-operative store that deals honestly in honest goods will always find it difficult to compete with the "cheap store." A society that merely runs a "cheap store" is injuring the Co-operative Movement. The important fact to get into the minds of the members is that the purpose of Co-operation is to distrib ute good goods, to give honest weight at fair prices. The private store that sells inferi or goods and takes advantage of the customer in the little matters wher ever it has a chance, may be able to undersell the co-operative store, but the customer in the end will pay more. We must get the people to understand this. The purpose of the co-operative store is not low price, but the best value for the money. 94 CO-OPERATION SEEN HERE AND THERE CO-OPERATIVE PRODUCERS' FACTORIES IN ENGLAND ByJ. P. W. Producers' profit-sharing work shops, often called "co-operative productive societies," were started long before the consumers' move ment was established. Robert Owen and the old school of Co-operators of the early part of the last century were devoted to the theory that the workers as producers should com pletely get control of the shops. At the present time there are 105 of these productive societies in Eng land. In 1913 there were 108. The important factor is the number of employees. In 1913 the workers numbered 10,500; in 1920 there were 11,500. How nearly these shops are con trolled by the workers may be seen from the fact that in 1913 the total number of shareholders of the so cieties was 35,000, and in 1920 it was 43,000. In other words, there are more than three times as many shareholders as workers. The work ers have not been able to finance these undertakings, and consequent ly three-fourths of the membership is outside of the shops. This major ity of shareholders who are not workers in the industry do not at tend the meetings, the managers have told me. They do not partici pate in the government. They put in their money either for investment or philanthropy. I will cite two of the best examples in England. The Desborough shoe factory is one of the best of these shops. In this case about one-third of the stock is owned by the workers, one- third by consumers' societies, and one-third by philanthropists and other organizations. There is noth ing about this shoe factory that im presses one as setting any especial example. It is crowded, noisy, stren uous, dirty and possesses not a sug gestion of beauty or attention to anything but intensive production. Many of the workers are young boys with the peculiar pallor that one constantly sees in other profit-mak ing shoe factories. I was sadly im pressed by this effort of the workers to get control of their factory by way of the producers' approach. The wages earned by these workers are on the whole slightly better than in capitalistic shoe factories; but the struggle is a desperate one. I could not help recalling the spacious, airy, clean and beautiful shoe factory of the Swiss consumers' societies in Basel, or the big, airy factory of the Danish Wholesale at Copenhagen or the great shoe works of the English wholesale at Leceister. These three are consumers' facto ries. In comparison with them the efforts of producers seem like very precarious undertakings. As a plant the Desborough shoe factory compares very unfavorably with the corset factory of the C. W. S. in the same town. Another of the best examples of a productive society is the Kittering clothing works. In this case also the workers own only about one-third of the stock. Most of the employees are girls. As is the case in all in dustries, they are there only until they can get married or find a better job; but this fact prevents them from developing a permanent inter est in the shop. On the other hand, marriage or a better job does not in terfere with the consumers' relation to his society, except to improve it. This Kittering clothing factory is an old society of producers. I asked the manager what he saw ahead for it, what was to be its ultimate desti ny? He frankly replied that it would probably end by being taken over by the Co-operative Wholesale So ciety. This latter has been the fate of many of the producers' plants that CO-OPERATION 95 have not gone down in failure. Rel atively few have lasted long. For fifty years the English C. W. S. has been taking over factories that were started by the workers in the inter est of the employees. It is interest ing history to see these producers' shops, one by one, being taken over by the organized consumers' move ment. These producers seem to under stand the difficulties under which they labor better than the theorists who still harbor the fallacy that workers' control can be won by be ginning at the productive plant. They are coming to understand that these productive shops are not pro ducing goods for use, but for profit. If their enterprise succeeds it means profits for the workers, and if the profits become large the natural ten dency is to restrict the number of people who can have them. By so doing the profits are made still lar ger. As a result, the "successful" producers' factory tends to convert itself into a busines of capitalists and the social spirit disappears. Success means failure! In England these producers' so cieties in the last eight years have increased their membership 23 per cent, but the total number of em ployees has been increased only 14 per cent. On the other hand, the consumers' societies in the same period increased their membership from 2,878,648 to 4,504,852, an in crease of nearly 100 per cent. The total employees of the consumers' societies of Great Britain is 186,000. One reason for this difference in size and growth between producers' and consumers' societies is that the increase of membership is of advan tage to the consumers; but if the producers increase the number of workers the profits must be divided among more people, and if they in crease the number of members who do not work, democracy is carried just so much farther away. The producers' profit-sharing work-shop may be useful as an adjunct to the trade union movement, but neither it nor the trade union movement alone can solve the workers' prob lem. The British working people are arriving at the understanding that the control of industry by the people can be attained only by organizing as consumers. THE NORTHERN STATES CO-OPERATIVE LEAGUE By SEVERI ALANNE A brief report of the organization of the Northern States League has been published in the April issue of this magazine. The new district league is organized under the con stitution of The Co-operative League. The convention was held in the Co operative Central Exchange Build ing, on March 18. Fourteen co-op erative societies sent 24 delegates to this convention. Among the fourteen societies rep resented there was one central (wholesale) organization—the Co operative Central Exchange of Su perior, Wis.—and two co-operative (consumers') creameries; the rest were distributive societies (co-oper ative stores). The aggregate mem bership of these 14 societies ex ceeded 10,000, and the total sales of these societies during the year 1921 was more than $1,500,000. The fol lowing is a complete list of the so cieties represented at this conven tion : Milwaukee Consumers' Co-opera tive Association, Milwaukee, Wis.; delegates, Edw. Murray and Harry J. Toal. Co-operative Central Exchange, Superior, Wis.; delegates, John Nummivuori, Severi Alanne, Matt Tenhunen, K. Lindenwall and H. V. Nurmi. Franklin Co-operative Creamery 96 CO-OPERATION CO-OPERATION 97 Association, Minneapolis, Minn.; delegate, Mrs. Edw. Solem. Union Consumers' Co-operative Society, Duluth, Minn.; delegates, P. F. DeMore, John Crew and H. L. Morin. Workers' and Farmers' Co-opera tive Company, Two Harbors, Minn.; delegate, Aug. Omtvedt. Glenwood City Equity Company, Glenwood City, Wis.; delegates, Wm. Rutzen and David Zillsdorf. Spooner Co-operative Association, Spooner, Wis.; delegate, Wm. D. Campaigne. Producers' Co-operative Associa tion, Ashland, Wis.; delegate, C. L. Rydmark. Central Co-operative Creamery Association, Superior, Wis.; cBele- gates, Harry Bourquin and Arvid Nelson. Farmers' Co-operative Company, Wright, Minn.; delegate, Victor Lahti. Farmers' Co-operative Company, Cromwell, Minn.; delegate, Sam Sahlman. Wentworth Farmers' Co-operative Association, Wentworth, Wis.; dele gates, Frank Berggren and Anton Christensen. Brantwood Supply Company, Brantwood, Wis.; delegate, A. E. Lindros. Pilsen Co-operative Association, Moquah, Wis.; delegates, John Me- lisko and M. J. Bizub. Nine of the societies represented are in Wisconsin, while six are in Minnesota. Several societies from the state of Michigan had been in vited to send delegates to the con vention, but only one—the Crystal Falls Co-operative Society—had sent delegates. By a misunder standing, however, these delegates had arrived in Superior for the 17th, on which date a co-operative man agers' conference was held, and on account of arrangements they had made at home, had to return on the night of the 17th, and thus were unable to take part in the delibera tions of the convention. But, as the Co-operative Central Exchange com prises also societies from Michigan it can be said that Michigan, too, was represented at the convention. Delegate Edw. Murray, of Mil waukee, was elected chairman; Del egate P. F. DeMore, of Duluth, vice- chairman; and Delegate S. Alanne, of Superior, secretary for the con vention. John Scholtes, secretary of the Union Consumers' Society of Duluth, Mlinn., acted as assistant secretary for the meeting. The secretary read a communica tion from The Co-operative League, conveying the best wishes of the na tional organization to the conven tion. There was also a communica tion from J. H. Walker, secretary of the Bureau of Co-operative Societies of the American Federation of La bor, as well as a telegram of greet ing from the Marquette University Chapter, Intercollegiate Co-opera tive Society of Milwaukee, Wis. While waiting for the report of the credentials committee, an oppor tunity was given to one delegate from each society to say a few words about the history and activities of their respective societies. This was done also with a view of giving the delegates an opportunity to get ac quainted with each other. The committee on permanent or ganization took up the model consti tution for district leagues as drafted at the second national convention of The Co-operative League, held in Cincinnati, Ohio, in November, 1920. This constitution was adopted by the convention with the slight changes necessary. It was agreed that each affiliated society pay 15 cents per member dues annually, so that the annual dues of a society, f. L, with 200 members would be $30 a year. One-fourth of this goes to The Co-operative League. Other subjects discussed by the convention were: The best methods for spreading co-operative literature and knowl edge of the Co-operative Movement within the district. A uniform system of accounting among the co-operative stores in the district. Delegate H. V. Nurmi, of the auditing department of the Co operative Central Exchange, read a paper on this subject. Samples of literature published by The Co-operative League were distributed. The following were elected di rectors for the newly-created league: S. Alanne, of Superior, Wis.; Mrs. Edw. Solem, of Mineap- olis, Minn.; Harry J. Toal, of Mil waukee, Wis.; John Nummivuori, of Superior, Wis.; P. F. DeMore and John Scholtes, of Duluth, Minn.; H. V. Nurmi, of Virginia, Minn. The following were elected as alter nates: C. L. Rydmark, of Ashland, Wis.; Wm. Rutzen, of Glenwood City, Wis.; Wm. D. Campaigne, of Spooner, Wis.; and M. J. Bizub, of Moquah, Wis. The convention decided that the next convention of the league be held in Minneapolis, Minn., in Sep tember, in the new hall of the Franklin Co-operative Creamery Association. Mr. Clark H. Getts, representing the Federated Press, acted as toast- master at the banquet which had been arranged by a committee on arrangements, elected jointly by the Union Consumers' Co-operative So ciety of Duluth and the Co-operative Central Exchange. Besides the "eats," the delegates and visitors were treated with some orchestra selections furnished by the workers' orchestra of Superior, violin and vo cal solos, dancing by children, etc. The banqueters were photographed and one of these photographs will be on exhibition in the offices of The Co-operative League. After a session lasting practically all day and broken only by short re cesses for lunch as well as the three- hour banquet, the first convention of the Northern States Co-operative League adjourned at about mid night on the 18th of March, which day will go into history as one of the milestones in the American Co operative Movement. ELIMINATION OF WASTE IN THE RESTAURANT By MARY ARNOLD Manager, "Our Co-operative Cafeteria," New York City Abstract of Lecture at The Co-operative League School There are three kinds of waste which we should consider: Prod ucts, time, and, most important of all, the workers' spiritual force. The first and second may be thought of in terms of money waste. When it comes to simple buying, it is pretty easy to determine whether you are getting a thing for 10, 12 or 15 cents, or whether you are pay ing more than you should for prod ucts. Buying is so largely an indi vidual problem that we will not dis cuss it in detail. In a cafeteria it is important to buy the exact article you want. The demand is the im portant factor, and it is here that the most waste is apt to occur, be cause it is not so obvious as in the cost of products. One of our jobs is to know ex actly what people want. It is nec essary to study the custom. Before opening a place we make up ou» minds what class we are going to hit for. We find that men and wom en like entirely different things; young and old women and young and old men like different things. If we are going to buy successfully without waste we must know ex actly what our group wants. Young women between 15 and 25 i.ll like a lot of sugar in their desserts, but every year the desire for sugar grows less intense, so that for peo ple of 50 you would cut your sugar in half. College boys are different in their tastes from young women, and prefer volume to quality. 98 CO-OPERATION CO-OPERATION 99 Waste is not a question of what is left over, for there should be no left overs if the quality is right. It is a question of making the article hit the demand. It is essential to know the inten sity of demand. In establishing a restaurant you must know the num ber of people to be fed, the number compared with the acreage, and the number of other similar places. Also the character of demand. What kind of groups, the tastes, the sex, age, etc. Your facts should be so col lected and well calculated that your turnover will be immediate and the maximum number of people served. In a cafeteria these careful studies determine the difference be tween profit and loss. In the first place, we find that one of our big gest problems is the exact measure ment of the thing that is to be sold at a given price. In the beginning we discovered the first month that we were §80. short according to our books. By carefully shaving ever so slightly the portions of meat, less sugar in desserts, etc., we found when the second report was read that we were §120 to the good. Nothing should ever come back to the kitchen from the plates in large quantities. If the same thing comes in on two plates it is the manager's job to fly to the kitchen and find out what is the matter with that article. Before serving, everything must be tasted by the manager or assistant manager. In cooking calculate short on things that cannot be used later, as for instance, certain desserts. Such things as meat, potatoes and some vegetables can be provided in large quantities and used if left over. Watch the first half hour for replac ing articles that move fast. Some things have to be replaced twice. The manager's job keeps her going back from the dining room to the kitchen with reports. Our wages are running almost as high in percentage as our food costs. Waste in labor is quite as expensive as waste in food. It is necessary that while people are working they should earnestly work. Their work should be so arranged that they can utilize their time to the best advan tage. It is also important to have the right person for the job. There is often much waste because people are not fitted to the job. This is a loss for the management and a loss for the employee. One of the things to be developed in the future is this fitting of the person to the job. The manager's duty is to do every job in the place: wash the dishes, clean the coffee urn, serve the food, etc., timing herself on each partic ular job until the exact knowledge is attained. For instance, of the length of time needed to cut the bread and the number of slices to the loaf, etc., may be taken as a test. This must be done without speeding up or soldiering. Cost accounting in labor is one of our biggest concerns. Schedules should show that the workers are using the time to the best advantage. The third factor in waste is the biggest element. This is the waste of spirit applied to the work itself. It is a problem to fit people to the job in which they are primarily in terested. We all have to be taught the technique of the job first. How to do it in the best way. Then the thing to remember is that it is the result that should be asked of us. There is room for endless self-ex pression in a cafeteria if every op portunity is given to bring it out. The jobs in a cafeteria range themselves; first, dishwashing; sec ond, salad making; third, serving at counter. Once the technique is learned, there are many ways of carrying on the work, just as well as in any executive work. Self- expression is possible in making sal ads, for instance. There is a great difference in a day of drudgery and a day that is full of self-expression. We care a great deal about this. The hours and wages are vital, but the opportunity for initiative is the thing that our workers care most about. The happy work of each in dividual worker is the thing that makes our cafeteria a success. Every worker is supposed to show certain definite results. If the man ager thinks the job can be done in a better way, she must make the test and prove her point. Our work ers are much interested in tests. The cafeteria is a place where the op portunity of self-expression in work is one of the biggest things we as Co-operators have to face. Each worker is allowed 80 cents worth of food for each meal. All the workers practically become members and share in the savings- returns on the same basis as every other member. (In Answer to Questions) We do not keep our cafeteria open on Sundays because of the workers' need for rest. It is better to sell many articles at low prices than few articles at high prices. The question of obviating the long waiting lines is very difficult to answer. Our people are very pa tient, and seem to prefer to come where they get home-made good food at a cafeteria than to pay more and be served quicker at restaurants. There are always certain groups who do not like the cafeteria, but it pays much better than the restan- rant or tea room. Most of our mem bers are office workers and do not mind standing in line. The ugliness of the tray service we wish we could overcome some way. Ten per cent is the maximum sav ings-return that we expect to make. To do this we must have a crowded place. If the crowd is a minimum it would amount only to 6 per cent. EDUCATIONAL WORK AT "OUR CAFETERIA" By MARION L. NASH (Discussion Continued) "Our Cafeteria" was started in 1920 by four people with a capital of §4,400. After it had been run ning for five months and showed a profit, a campaign was started to get members at $10 per share, with a limit of individual share-owning of $200. Posters such as the following were placed on the wall: "Do you want to share in the profits of the Cafeteria?" "Don't you want to catch the high cost of living by the tail ? " This was in the shape of a fish being pulled up on a line. Meetings were held and leaflets distributed. The empty sugar bowls were used for literature. There was a membership commit tee appointed, composed of twelve people. A green line was drawn to a room where every day two mem bers of the committee sat to answer questions and give out literature and take in membership money. Such leaflets as "Our Cafeteria; How it Works. " "Our Cafeteria; How it Grew," were printed and distributed with small cards with the address on. In the first two weeks 112 mem bers joined. It is better to have an intensive campaign for one week only. Other committees appointed were: The library, to purchase and distribute books and pamphlets on Co-operation; the educational, to arrange lectures and meetings; the house, including inspection and dec oration; and the bulletin committee to post clippings, reports and no tices each day on the bulletin board. Business meetings are held monthly. About 60 people attend. The monthly reports and financial statement are sent to each member by mail. The society publishes its own paper, "The Co-operative Crier." The future plan is to keep on starting branches as soon as each one is self-supporting and firmly established. (See Report, page 103) 100 CO-OPERATION THE CO-OPERATIVE LEAGUE DEDICATION OF THE LEAGUE HOUSE On Saturday, May 13, 1922, the opening of The Co-operative League House in New York City was cele brated. Friends of Co-operation crowded the building. Some came from out of town from New York State, from Pennsylvania, New Jer sey and Connecticut. Letters and telegrams of greeting and good THE CO-OPERATIVE LEAGUE HOUSE 167 WEST 12th STREET, NEW YORK CITY wishes were read from members of the Board of Directors and other workers in the field from all parts of the United States. Music was furnished by an orchestra under the direction of a member of The League. Addresses were made by Albert Sonnichsen, Emerson P. Harris, Pe ter Hamilton, Andrew P. Bower and Agnes D. Warbasse. J. P. War- Basse presided. Many prominent workers in the Co-operative Move ment and well-known leaders in the field of labor education were pres ent. Refreshments were served. A general spirit of happiness and ex hilaration, inspired by the progress of The League and the evidences of its steady development, prevailed. All of the speeches and the con versations of the guests rang with enthusiasm for The Co-operative League House. It was realized that after seven years of solid, patient work and growth, The League was entitled to a home of its own. The offices in which the Executive Board now do their work are comfortable, beautiful and commodious. Thus step, by step, year by year, The League advances. One of the speakers expressed his gratification that the Co-operatvie Movement in the United States was growing not fast, but slowly. It must grow slowly, because a sound Co-operative Movement can grow no faster than it can educate and train people to guide it. It is the steady work of The League that is building the foundation upon which a great co-operative structure may be reared. PUSH THE MODEL LAW The model state co-operative law drafted by the committee on legis lation of The League, has met with a gratifying response. Influential people in Wisconsin, Ohio, Illinois, New York, and other states, are bringing the model law to the at tention of legislators. Mr. J. P. Busker, secretary of the educational committee of the Roseland Co-oper ative Association of Chicago, in forms us that the Roseland Society has seen the state representative of its district about the co-operative law. This is the right spirit, and other societies should follow this ex ample. In fighting some of the most dan gerous fakes during the past few years, The League has learned to its cost that there is not a single state with laws which are adequate to deal with the clever fakers. The model co-operative law drafted by CO-OPERATION 101 The League is especially designed to cope with this situation. Copies of the law will be sent on request. Get behind the model law in your state, and have it enacted, for the protection of the public and of co operative societies. TABLE OF GROCERY BUSINESS PROFITS A very valuable report of a survey made of the retail grocery stores in New York City has been issued by the New York State Department of Farms and Markets. The report contains tables giving the percent ages of gross profit on various com modities, and other useful informa tion. An especially valuable study is made of the operating expenses and profits of "cash-and-carry" stores, as compared to "credit-and- delivery" stores. The report is writ ten in popular style, and the points are made clear by means of graphic illustrations. The board of directors of each society should study this report care fully. Copies may be had on appli cation to Herschel Jones, Director of the Department of Farms and Mar kets, 90 West Broadway, New York City. ADVICE TO STORE MANAGERS Buying It is absolutely necessary to keep the stock down and to turn it over as many times a year as possible. A loose-leaf book or The League's order blanks should be used. Some managers like the card system, and keep an index near the cash register, and each sale is entered at the time on the correct card. These cards show stock on hand when inventory was last taken, new stock added, and stock sold. This plan gives a perpetual inventory. It entails much work when many lines are carried, and can rarely be carried out in co operative grocery store, if there is lack of help. ^ -£~ In buying a new line of goods the price and terms should be favorable. Take no chances; buy in small quan tities when the price is not higher than in large quantities. There is much time saved by ordering by mail. You order when you need what you need in half the time con sumed in seeing salesmen. It is wise to go to market frequently and to keep in touch with wholesale prices through a trade journal. Avoid buying on consignment or on com mission. Get a carbon copy of ev ery order you give a salesman, and keep a copy of orders sent by mail. You can get order blanks and en velopes from all wholesalers. Dis count your bills. Pay as soon as invoices come in; this makes less bookkeeping. Enter on the check the date of the bill and check pays. If the turnover is not large it will be found hard to buy in the right quantities and at right wholesale prices. Case lots from the jobber is not a good plan. Twenty-five case lots from the wholesaler direct is much better when the business is big enough. Haul your goods if pos sible. This saves a great deal. Judge what people want by what they have bought before. In .open ing a store be conservative. Do not put in a large line of specialties. Visit neighboring stores to find out the special needs of the vicinity. Be courteous to salesmen, but let them know that you are too busy to give them more time than necessary. It is wise to compare prices before giving your orders. Tell them you will mail your order later, and then find out how much others are quot ing. Be not afraid to say "no" to a salesman. Remember, you are spending other people's money ev ery time you give an order. Spend it with the same care you would your own. The directors should al ways be consulted before any un usual order is given. Fruit and Vegetable Department UN The manager must pay particular attention to the purchase of fruits, 102 CO-OPERATION vegetables and other perishables. Some competent person will do well to visit the early morning farmers' market (if there is one) two or three times a week and buy on the same terms as the jobbers. If the man ager buys from peddlers he should examine every box or basket of goods carefully. He should ask over the phone what the jobbers are get ting for green goods before he pays the peddler's prices. He must buy conservatively. Better to run short before night than to have goods spoil over night. Customers should not be allowed to handle the ber ries, tomatoes, melons, etc., and pick out the best ones. Either put them under cover where they cannot be touched, or establish a rule to this effect. Every lot of such goods should be quickly graded and put into different boxes, so that best goods should bring high enough prices to make up for slight losses on the poorest grades. Sometimes five or six grades can be found in one shipment of cucumbers, toma toes, pears, etc. This reduces tempta tion for customers to try to grab the best. It is fairer to all. Quote the different prices over the phone when taking delivery orders; and there will be no necessity for palming off the cheapest goods to delivery cus tomers. Immediately such an order is taken lay aside the goods desired, so that they will not be sold by oth er clerks. Do not put vegetables and fruit on the floor of the store. Meat Department The manager should see to it that a competent meat cutter is put in charge of the meat department. All the expenses and sales should be kept separate from the rest of the accounts. Some stores in country towns buy native stock and employ a meat cutter by the day according to the need. There is a saving in making lard and sausage meat at the store. See that the ice box is kept clean. CO-OPERATION ENDORSED BY LABOR FEDERATIONS At the Pennsylvania Federa tion of Labor Convention at Scran- ton the address of fraternal greet ings in behalf of The Co-operative League, by Andrew P. Bower, was enthusiastically received. Mr. Bow er, who, in addition to being vice- president of The League, was elect ed third vice-president of the Penn sylvania Federation of Labor, was instructed "to go the limit" in car rying on educational work among the co-operatives in Pennsylvania. The Labor Federation will pay his expenses. Mr. Bower reports that he had never experienced so gratify ing a reception in advocating Co operation before the federation con vention as he had this year. As an evidence of the need for co-opera tive education, it was reported at the convention that the disastrous experience of the Tri-State Whole sale, which cost organized labor in Pennsylvania $213,000, would nev er have occurred if the warnings is sued by The Co-operative League had been heeded. The Tennessee Federation of Labor also took a very favorable attitude towards Co-oper ation. Mr. W. F. Seigenthaler, a loyal Co-operator, at a great per sonal sacrifice, attended the con vention at Memphis and delivered the greetings of The League. The convention adopted a resolution en dorsing and approving the work of The Co-operative League, and in structing the officers of the Federa tion to take up the study of Con sumers' Co-operation and to further its development as far as they can. Mr. Seigenthaler reports that an amusing incident occurred in the committee on resolutions. The only person in the committee familiar with Rochdale Co-operation was a woman school teacher. Men who had been in the labor movement many years had never heard of Rochdale Co-operation, and heard of it for the first time from the lips of a woman. CO-OPERATION 103 NEWS AND COMMENT A CONFERENCE OF CO-OPERA TIVE MANAGERS IN MINNESOTA A realization that united action for their own benefit would be helpful has come to several co-oper ative societies in Minnesota, which hitherto have held aloof from all central organizations. As an indi cation of this new spirit, a confer ence of co-operative store managers in the state of Minnesota was held at the Ryan Hotel in St. Paul, April 27. Eleven societies werei repre sented by their managers, one soci ety having sent a board member along with the manager to the con ference. The following co-operative stores were represented at the conference: Rothsay Co-operative Association, Rothsay; People's Co-operative Mer cantile Company, Dillworth; Farm ers' Co-operative Mercantile Com pany, Hoffman; Minnesota Lake Farmers' Co-operative Mercantile Company, Minnesota Lake; New Richland Farmers' Co-operative Company, New Richland; Young America Co-operative Store Com pany, Young America; Greenland Farmers' Equity Exchange, Elysian; Farmers' Mercantile Company, Star- buck; Staples Co-operative Compa ny, Staples; Farmers' Co-operative Company, Lamberton; Bethel Co operative Store Company, Bethel. The chief topic discussed was the question of permanent organization. It was agreed that another confer ence should be held, as the attend ance at this conference was consid ered too small to start any kind of permanent organization. The planned new conference will be held some time in June and a com mittee of three was elected to make arrangements for the same. Mr. S. Alanne, head of the edu cational department of the Co-op erative Central Exchange of Supe rior, Wis., was also present at the conference. He explained that about thirty of the fifty-eight co operative societies affiliated with the Co-operative Central Exchange are located in Minnesota, about half of these being regular co-operative stores and the other half co-opera tive buying clubs. The conference was an outcome of circulars which had been sent out by Mr. J. L. Anderson, manager of the Rothsay Co-operation Asso ciation. Mr. Anderson acted as chairman at the conference. "OUR CAFETERIA" The annual report of "Our Co operative Cafeteria," of New York City, shows a total income from meals during the year ending March 31, 1922, of $190,247.93. This takes into account the yearly busi ness of two cafeterias, and only three months' operation of the new cafeteria in the financial district. With three cafeterias in operation, the report for next year will prob ably show a business of about $250,000. The net surplus-savings for the past year amounted to $20,829, of which $1,886 was spent on co-oper ative education. Large quantities of the literature of The League are distributed at the cafeterias as a part of the steady educational work of the society. Members of the so ciety received $2,754 in savings- returns on their meals, in addition to interest on their shares. Thou sands of dollares were set aside to cover depreciation of fixtures and equipment, and amortization. The greater part of the net earn ings of the society was put aside as a surplus fund. About $13,000 is available as a reserve. The reports of "The Co-operative Cafeteria" are remarkably clear and detailed. Members receive fre quent reports on the condition of the business. The books of the society 104 CO-OPERATION are inspected monthly by a firm of public accountants, and a certified statement has been issued semi- annually, consisting of the balance sheet and six months' income ac count. Such statements in the fu ture will be issued every three months. The society has over 750 mem bers. Its restaurants are at 52 East 25th Street, 54 Irving Place, and 22 Thames Street. "^ THE GREENWICH VILLAGE LAUNDRY The Greenwich Village Co-opera tive Laundry in New York City con tinues to make progress. Several times in the last six months it has had to put in more washing machines and enlarge its force. The laundry is owned by the Greenwich Village Co-operative Society, which is composed mostly of artists, writers and other pro fessional people. This is a laundry in which no de structive chemicals and no bleaches are used. Clothes are washed with the same personal care as at home, regardless of the expense. The prices charged are no higher than other hand laundries; but, unlike the so-called "hand laundries," that are really just receiving stations for big steam laundries, this one actu ally does hand work. This laundry aims to wash the clothes of its mem bers better and more safely than they can be washed elsewhere. Strenuous opposition from private laundrymen in the vicinity has been aroused by the success of the co operative laundry. The profit-mak ing laundries have resorted to every trick possible to destroy this com petitor. Its delivery boys were in duced to lose packages. When this failed, the boys themselves disap peared, several of them in succes sion. Packages were stolen, aeid was maliciously thrown on clothes after they were washed. By this means holes were burned in the wash. Employees have been offered higher wages and other inducements to get them away from the laundry. Still the business is three times lar ger than it was six months ago. The laundry begun in a small way and expands gradually. It now has three power washers, a mangle, a dry room and employs nine persons, with every indication of continuous growth. ROSELAND CO-OPERATORS SAVE 110 PER CENT The Roseland Co-operative Asso ciation, of Chicago, affiliated with The Co-operative League,. makes a savings-return to its members and non-members equal to about 90 per cent of the invested capital. It has a grocery and meat market, a branch store, a restaurant, club rooms and a library. During the same period hundreds of thousands of dollars were being lost by a gigantic Chicago fake "co operative." The Roseland Society had a turn over of $195,605 in 1921, a decrease of $12,000 as compared with the previous year. In view of the steady decline of prices during the year, these figures really represent a gain in the volume of business. The net surplus-saving amounted to ,$6,332.- 76. The society paid $359.50 in in terest on capital and loans, it spent $363.56 for educational purposes, and paid savings-returns amounting to $5,024. As the subscribed capi tal stock of the society is only $5,- 720, the savings-returns represent a return of about 90 per cent of the invested capital. In addition to these savings, the sum of $485.70 was retained for reserves, after pay ing all expenses, interest and re turns. The net surplus-saving of $6,- 332.76 is what profit-making busi ness would call profits. On an in vestment of $5,720 this represents a return (or "profit") of 110 per cent. That is about twenty times CO-OPERATION 105 more return on investment than the average capitalist gets. We insist that if the people will but organize and conduct true co-operative en terprises, they can beat the capital ist at his" own game. BALTIMORE SOCIETY HELPS MINERS In spite of the fact that it has not yet been in a position to make savings for its members, the Organ ized Labor Co-operative Society of Baltimore, Md., has rendered a great service. During the past few months, the sum of $15,000 was dis pensed through the co-operative store for the relief of the striking miners of West Virginia and West ern Maryland. Every dollar spent in the co-operative society for food for the strikers bought more goods than could be gotten through pri vate firms. Six carloads of flour, bacon and other staples have so far been supplied through the co-op. This society has a membership of more than a thousand workers. It has an active women's guild, which is developing plans for a co-opera tive camp to be conducted this summer at the Patapsco forest re serve. At a small cost, camping facilities will be provided for the families of the Co-operators. The store operated by this soci ety is showing a steadily growing business. Overhead costs have been materially reduced. The Rochdale plan is followed, and the society does not hesitate to seek the assist ance of The League, with which it is affiliated. CO-OPERATION IN SHANGHAI A co-operative society has just been organized at the Fuh-Tan Uni versity, in Shanghai, China. The name of the society is The Ping Ming Co-operative Association. We are assured that this is the first co operative to be organized in China. This pioneer group is in touch with The League, and is profiting by American education and experience. CONCERNING MAINTENANCE OF WAY BROTHERHOOD In the May number of CO-OPERA TION we were in error m the mat ter published under the caption, "A Badly Advised Rail Brotherhood." The United Brotherhood of Main tenance of Way Employees and Railway Shop Laborers is not and never has been in the hands of a receiver by order of any court. The only order restraining the Brother hood from withdrawing its bank de posits was one issued in the state of Ohio. We are advised by the Grand President of the Brotherhood that, thougli the organization has suf fered financial loss through the wild and frenzied orgie of spending in dulged in by former officers in in dustrial enterprises, the total loss to date, as disclosed by the certi fied audit, will not approach one- sixth of the amount mentioned in our May article. It is most gratifying to learn that the losses suffered by this Brother hood are not so great as had been supposed. But what is more grati fying is the fact that this organiza tion now has as officers men who are truly interested in real Co-operation, and who can be relied upon to pro tect the members against the wild schemes into which labor bodies now seem so prone to enter. CENTRAL COMMITTEE OF THE I. C. A. MEETS The Central Committee of the In ternational Alliance met at Milan, Italy, April 10 and 11. It received the report of its committee of inves tigation, which had just returned from Russia. The report showed that the distributive societies had been given their full freedom, and are no longer dominated by the government; in fact, they have a larger degree of freedom than have the societies in many other coun tries. The next meeting of the Cen tral Committee will be held in Ham burg in the spring of 1923. 106 CO-OPERATION MARGARINE IN DENMARK We drove in an automobile from Ringsted to Haslev, in Denmark, last summer. Along the road we stopped at a co-operative store, in the remote country. In front of the store stood a wagon which had stopped to deliver margarine. Here in the rich dairy country of Den mark, that makes the best butter in the world, the co-operative store was selling margarine to the farm ers. Why is it? Because the farm ers get such good prices for the but ter they export, and they can buy margarine so cheaply they have not the heart to eat butter. Strange as it may seem, the Danish co-opera tive wholesale has no creamery or butter factory, but it has a marga rine factory. This is one of the strange results of economic deter minism which directly affects the Co-operative Movement. J. P. W. EVERY MEMBER PRESENT AT ANNUAL MEETING AT PINE BLUFF The Pine Bluff Co-operative Asso ciation, Arkansas, runs a general store. At the last meeting of the stockholders a savings-return, to the amount of $2,800 was distributed back to the stockholders. The Asso ciation paid to all stockholders the interest on their capital stock, which totaled approximately $500. The sum of $1,000 was left in the undivided surplus-savings column to be dis tributed later as the stockholders see fit. To those of the laboring classes who have never attempted the co operative idea, please do not do so unless you are absolutely sure you know what you are doing. Unless you are loyal to the core, unless you can keep your head when the entire world goes to pieces, and you see crashing to earth all the cherished idealized dreams of Co-operation, and unless you have a strong heart and can withstand shocks of any descrip tion and intensity, you had better think twice before taking the leap into the turbulent sea of Co-opera tion. Pandora's box, with all its troubles, was a piker compared to what trying to operate a co-operative store in Pine Bluff has demonstrated. As an illustration: One of the mem bers of the board began his duties as a director with a high heart that dared fate to come out and do its worst. The snow is now beginning to show in his raven locks. The box of trouble opened when we unlocked the co-operative store. You who read this and contemplate a voy age of Co-operation will do well to consider many things. First, is this: generally speaking, all men are liars by the clock; they'll become all "het" up about an idea, ready to go through fire for it at the time; then in a few days they have forgotten it. Remember that the sting has never been taken out of human nature. All the meanness and cussedness that ever possessed a group of people will come out when you begin your co operative store. The crop of sleep less night and tales of calumny that are visited upon you as a director will be countless. And now again I will say that if you contemplate suicide, forget it, and try operating a co-operative store, and you'll find life just one sweet nightmare after another; and then you'll get mad and want to live in order to see each one of the knock ers of your cherished dream die a hard death. But the lane ends, and opening be fore us here, in Pine Bluff, we be lieve is the turning point. Out of desperation and despair; out of all the mean things that could be said about the store, it still stands, after two years of operation, as a monu ment to organized labor. It is still in its infancy, but with virtually ev ery one of the two hundred and fifty stockholders present at the meeting never before were they so impressed with the magnitude and soundness of the business. The Union Labor Bulletin. W. S. BUSICK. CO-OPERATION 107 WORD FROM THE FIELD OF ACTION CONFERENCE OF MASSACHUSETTS BAKERIES The "Conference of Massachusetts Co operative Bakeries" is a league which be gan with a conference and which contin ues to hold conferences. It was formed more than a year ago, and now meets bi-monthly, each time in a dif ferent member city. The conference idea originated in New Bedford with the presi dent of the local bakery, Mr. J. Goldberg. Before there were six bakeries in Massa chusetts, each going its separate path, in management, in buying, in educational methods (or lack of educational methods). The conference 'brought them together. They are now in close communication with each other. They have taken lessons in store management, in proper sanitation, in types of machinery required. They passed on their experience to a new co-operative bakery opened last summer in Springfield, now the largest co-operative bakery in the state. Small savings in bakery materials were effected by a sort of collective con tract. A (plan for the future is the pur chase of flour through one office, in lots of five and ten cars. With a more stable market this may yet come. Another matter of collective buying among the bakeries is the purchase of coal in large quantity for the shareholders. I am now writing to a Pennsylvania mine for information on a purchase of 100 cars of coal for distribution in our eight cities. Springfield sold coal to its shareholders last winter at a saving of $1 per ton, and used eight cars, starting late in the year. I have left for the end, and purposely, the educational work of the conference. In the past this part of co-operative work has been much neglected; we are just begin ning to realize the need of more publicity, more training in the need and aspirations of Co-operation. We have now under con sideration the use of your four-page Asso ciated Magazine, the fourth page to be printed in Yiddish. Through the confer ence we were able to arrange a number of mass meetings and lectures in all of our cities. With the Associated Magazine we expect to reach every shareholder in the state. In addition, we are planning to translate into Yiddish some of the leaflets you have sent up, and use them in this way. We would like to get something novel into our meetings by the use of motion picture reels or slides on phases of the Co-operative Movement. MEYER GOLDBERG, Conference of Massachusetts Co-operative Bakeries. HILLMAN NOW ON RIGHT TRACK Your letter of recent date was read at our last stockholders' meeting, and they decided to join The League. We have had lots of experience with the Co-operative Movement in Seattle of recent years. We were part of the old Consumers' Co-oper ative, organized by Messrs. Ames, Clarke and Lund. We organized a few make shifts after the failure of the consumers. Finally, we have got on the right path. In a small locality with seven competit ors, we held our overhead down to the lowest figure. Our surplus-saving was di vided as follows: Members, 6 per cent; non-members, 3 per cent. The first few months of our experience from August to December was a hard battle to fight, owing to the big slump in the shipbuilding in Seattle; also to the fake co-operatives and other labor wildcat schemes that grew out of the boom here during the war. Our organization is small, but if we only had 100 more like us in the state of Wash ington they could not say Co-operation is a failure in the Pacific Northwest. President, Hillman Independent Co-opera tive. R. BUCHANAN, Seattle, Wash. EDUCATION AT SCRANTON The Co-operative Society in Scranton, Pa., has organized a study class in Co-oper ation, using the course arranged by The League. We have twenty-five students en rolled and quite an interest worked up. Expect to continue the work until the warm weather comes, and then start in next fall again. The Central Labor Union has endorsed our plan and has given $50 toward the work. Expect to double the membership. Since January the business has increased just about 100 per cent in our co-operative store, and new members are enrolling. I think our class work has helped us to make a new start. The trouble was these people wanted to do big things, but as yet they have not learned to do the little ones. A clear understanding, simplified and ex plained in working-class language, will save the co-operative organization. Scranton, Penn. MARTIN WEBER. 108 CO-OPERATION CLEVELAND DAIRY MACHINERY We are making progress, not only in getting the Co-operative undertaking be fore the workers of Cleveland, but also in our preparation for operation. Yesterday a carload of machinery and equipment was unloaded and this was all done by the be>ys who have 'been working hard to bring the project to the point where it now is. In this way we are making numerous sav ings to the Co-op, thus keeping the share capital as intact as we can. O. J, ARNESS. Cleveland, Ohio. NEW YORK MILLS SMALL BUT STRONG We are glad to be able to say that the business done by our store during 1921 was most satisfactory. Our gross sales were over $45,000, and our net surplus savings over $4,200. We paid interest of 6 per cent on our outstanding capital stock and placed 10 per cent of our sur plus savings in our general reserve fund, 2 per cent in our educational reserve fund, and paid savings returns to customers as follows: 8 per cent to members on cash and carry sales. 5 per cent to members on house delivery sales. 4 per cent to non-members on cash and carry sales. 2% per cent to non-members on house delivery sales. Also 8 per cent on employees' salaries. There are about 125 shareholders, who thus far have given the store loyal support. W. S. H. BAKER, Secretary, The Co-operative Store Association. New York Mills, N. Y. (The practice adopted by this associa tion of deducting 3 per cent from the re bate of members who insist on house deliv eries is a good one. Members who receive house delivery service should pay for it.) THE NEW BEDFORD BAKERY This bakery is in existence over three years, and doing a business of over $50,- 000 annually. It is primarily a Jewish business, as all the shareholders are Jews. We have bought a lot and are planning to build a modern bakery the coming summer. We would like very much to interest the American public in our co-operative, so that when we build our bakery we could put in an oven for American bread also. Inasmuch as all efforts to unionize the American bakeries have failed, and all strikes among them have been lost, we could be of great help to the union bakers. B. LEVINE, Manager, Labor League Co-operatic. New Bedford, Mass. FROM THE LEAGUE'S EURO PEAN CORRESPONDENT CO-OPERATIVES THE ONE HOPE IN EUROPE My most serious interest in the Co-op erative Movement has developed during the last year, in which time I have been in England, Ireland, France, Germany, Aus tria, Hungary and Italy, studying the social, economic, and political situations in these countries, first as an independent student and later as a correspondent. Certain things stand out glaringly in all these countries. One is the complete collapse of the social democratic idea and ideal. I have not been in Russia, but living here in Vienna, where scores of refugees pour through daily, and reading Karl Radeck's own very frank confessions in the "Red Flag," talking with Russians in the immi gration houses in London, and comparing the evidence with the boishevik experiment in Hungary, it all tells one story of the utter hopelessness of the social democratic, Marxian, bolshevik idea. The tragedy of the socialist failure in Austria, Hungary, Russia, and Italy, is that the masses of the people are left with nothing to take its place. A very large number of the idealists were actually or nominally in the socilaist camp. Now, those among them who have even a degree of intellectual honesty realize that they have been following false gods; but where else to look? The result is an appalling cyni cism. I cannot help but feel that we are entering the "Twilight of the Gods." I don't see any rifts in the present reac tion. Instead it is deepening everywhere. So that out of all this welter of hate and blindness there seems to be very little to which one can cling. But what little there is in human association that seems to stand up under the test is invariably the free, spontaneous, decentralized Move ment, and springing out of everyday, hu man needs. So in Bavaria the co-opera tives have come blithely through every thing, and are stronger than ever. In Ire land, where I spent two weeks last August, the co-operatives were the only associa tions able to keep their heads above the political storm—although the English at tacks on the creameries, waged for God knows what reason, brought even them into the maelstrom. Still it was inherent in their quality that they managed to keep out as long as they did. In Italy, where I spent six weeks during and after the metal workers' fight last autumn, it was a joy to go to San Vittorio and see there a real ex ample of actual communism, the result of twenty years' co-operative activity. DOROTHY THOMPSON. Switzerland. CO-OPERATION PUBLICATIONS OF THE CO-OPERATIVE LEAGUE HISTORICAL. Per Copy Story of Co-operation ...-.............................................$ .10 British Co-operative Movement ........................................ .10 A Baker and What He Baked (Belgian Movement) ...................... .05 Co-operative Consumers' Movement in the United States. .............. .05 ' - 3. 7. 10. 38. . .............. 39. Conanmers' Co-operative Societies in N. Y. State, {Published by Con sumers' League) .10 TECHNICAL 4. How to Start and Run a Rochdale Co-operative Society. ................. .10 5. System of Store Records and Accounts ................................ .50 6. A Model Constitution and By-Laws for a Co-operative Society. .......... .05 8. Co-operative Education. Duties of Educational Committee Defined..... .10 How to Start a Co-operative Wholesale. ............................... .10 Why Co-operative Stores Fail .............. .......................... .02 Co-operative Store Management ...................................... .10 How to Start and Run a Women's Guild. ............................... .05 How to Organize a District Co-operative League ........................ .10 MISCELLANEOUS Producers' Co-operative Industries ................................... .10 Control of Industry by the People Through the Co-operative Movement. . . .10 Credit Union and Co-operative Store .................................. .05 Co-operative Movement (Yiddish) .................................... .02 Co-operative Housing ................................................. .10 9. 27. 2. 14. 2. 46. 11. 12. S4. 43. Per 100 $6.00 6.00 4.00 4.00 2.60 1.00 1.76 1.25 ONE-PAGE LEAFLETS (One cent each; 50 cents per 100; $2.50 per 500; $4 per 1,000) (1) Principles and Aims of the Co-operative League of America; (17) Do You Know Why You Should Be a Co-operator; (20) Why Loyalty Is Necessary; (21) Cost and Crime of Credit; (22) A Real Co-operator; (25) Resolutions Adopted by A. F. of L.; (26) Factory Workers, Co-operate!; (28) Do You Know About Co-operation in Europe?; (40) Have You a Committee on Education and Recreation?; (44) What Is the Co-operative Movement1? (45) Schools and Stores; (47) A Man's Right to a Job; (48) Tips to Co-operators; (49) Think It Over. MONTHLY PUBLICATIONS CO-OPERATION — (In bundle lots, $7.50 per hundred). Subscription, per year. ........ .$1 00 HOME CO-OPERATOR, 4 pages ................................................ $1 per 100 INTERNATIONAL CO-OPERATIVE BULLETIN (Pub. by The I. C. A.). . . . . . .per year, $1.50 BOOKS The following books are recommended as containing the best discussions of the modern Co-operative Movement. They may be ordered through The League: Bubnoff, J. B.: The Co-operative Movement in Russia, 1917. ......................... .$1.25 Faber, Harald: Co-operation in Danish Agriculture, 1918. ............................. 2.75 Flanagan, J. A.: Wholesale Co-operation in Scotland, 1920. ........................... 2.00 Gebhard, Hannes : Co-operation in Finland, 1916. ..................................... 2.00 Gide, C.: Consumers' Co-operative Societies, 1921 ...................................... 2.50 Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, $2.00; paper bound ........................................................................... .60 Howe, Fred C.: Denmark, a Co-operative Commonwealth, 1921. ......................... 2.50 Maxwell, Wm.: History of Co-operation in Scotland, 1910. ............................. 2.00 Nicholson, Isa: Our Story ............................................................ .25 Powell, G. Harold: Co-operation in Agriculture. Macmillan ....................... ... 1 50 Redfern, Percy: The Story of the C. W. S.. ........................................... 2.00 Smith-Gordon & Staples : Rural Reconstruction in Ireland, 1918 ....................... 2.50 Smith-Gordon : Co-operation in Many Lands, 1920 ...................................... 2.50 Sonnichsen, Albert: Consumers' Co-operation, 1919. Cloth bound, $1.75; paper bound... .75 Stolinsky, A. : The Co-operative Movement. In Yiddish ................................ 1.00 Webb, B. and S.: The Consumers' Co-operative Movement, 1921. . ...................... 5.00 Webb, Catherine : Industrial Co-operation, 1917 ...................................... 1.50 Woolf, Leonard: Co-operation and the Future of Industry. ............................ 2.00 Woolf, L.: Socialism and Co-operation ................................. .............. 2.00 "The Co-operative Consumer" and "Co-operation," III (1917), VI (1920), VII (1921).... 1.25 Transactions of Second American Co-operative Convention, 1920. ......'................ 1 00 The People's Year Book, 1922. ..................................................... .75 (Ten cents postage should be added for books which cost more than $2.00, and five cents for the smaller books.) THE CO-OPERATIVE LEAGUE (Member of The International Co-operative Allinace) 167 West 12th Street, New York An educational organization for teaching the history, principles, methods and aims of the Co-operative Movement and for the promotion of Co-operation In the United States. Join The League and thus help promote the educational work of the Co-operative Movement. Individual Membership, $1.00 a year. Subscribe for CO-OPERATION, the Monthly Magazine of The League, and keep in touch with the Movement. Enclosed find $. Subscription for CO-OPERATION, $1.00. Membership in The LEAGUE, $1.00. Name... Address. Date. ... Co-operative Central Exchange Wholesale Grocers and Jobbers, Bakers We supply Boods to Co-operative Societies ONMf We are owned and controlled by Co-operative Societies. We ore organized to enable Co-operative Soclettes to do collectively what they cannot do indi vidually. Co-operative Central Exchange Offices, Warehouses and Plant: Winter Street and Ogden Are., SUPERIOR, WIS. Co-operators' 1M. Mutual Fire Insurance Co. Is now writing Insurance In State of Wisconsin. The Canadian Co-operator Brantford, Ontario, Canada The organ of the Canadian Co-opera- tlve Movement, owned by and con ducted nnder the auspices of The Co-operative Union of Canada. Published monthly; 75c per annum MOVING PICTURES and Stereopticon Lectures may be rented from CO-OPERATIVE LEAGUE OF AMERICA 167 West 12th St., New York City 1. "SoiLe Examples of English Co-operation." Moving pictures of factory processes (two reels) ...............................-S5.00 2. "Co-operation In the United States." With 63 Stereopticon vlewe ............53.00 3. "The Co-operative Movement In Bnsssia." With 36 colored Stereopticon views.. ..$3.00 Co-operation in Scotland In no part of the world Is Co-operation further developed, or more successfully practised than In Scotland. If you wish to keep In touch, read "The Scottish Co-operator" (Published Weekly) Subscription: Year 12 sh.; half-year. 6 sh. Address, 119 Paisley Road, Glasgow, Scotland THE PRODUCER Issued Monthly Price 3d. If you want to keep in touch with business, organization, administra tive affairs, and problems of the British Co-operative Movement, read THE PRODUCER. Published by Co-operative Wholesale Society, Inc. I Balloon Street, Manchester. Post free 4 sh. 6d. a year. The Trade and Technical Organ of British Co-operation. THE HOME CO-OPERATOR A four-page magazine for use in co-operative societies. Issued monthly, in bundles, $1 per hundred. Published by The Co-operative League Publishing Office, Willimantic, Conn. Al bert Sonnichsen, Managing Eitor. A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in vol untary association, produce and distribute for their own use the things they need Published monthly by The Co-operative League, 167 West Twelfth Street, 'New York City, J. P. Warbasse, Editor. Price, $1.00 a year. Entered as second class matter, December 19, 1917, at the Post Office at New York, N. Y., under the Act of March 3, 1879. Vol. VIII, No. 7 JULY, 1922 10 Cents VITAL ISSUES THE THIRD CO-OPERATIVE CONGRESS The Third Congress of The Co- operative League will be held in Chicago October 26, 27 and 28, 1922. The First Congress was in Springfield, 111., in 1918; the second was in Cincinnati, Ohio, in 1920. This Third Congress will differ from the others in that it will be a repre sentative congress of the newly- constituted League. The other con gresses accepted delegates from all true co-operative societies. At this Third Congress only delegates from societies which are members of The Co-operative League will have the right to vote. The call to the Con gress is printed on another page of this magazine. The time has come when the na tional union of co-operative societies must take its place as the authorita tive body in the United States. The test of a true co-operative society should be its membership in The League. There must be some means to distinguish true societies from the false. The former should be members of The League; the latter cannot be. The League is the only organiza tion in the United States which is a member of the International Co operative Alliance. It is recognized by the Alliance as the union of con sumers' societies of this country. It is through The League only that societies in the United States can become a part of the great world Movement. The League is now tak ing the position which the similar national unions in the other coun tries take. Its congresses hereafter will be congresses of its constituent societies. All true co-operative con sumers' societies in the United States are eligible to membership in The League. For over six years now they have been receiving the invita tion to join it. If they remain longer outside of the national family of societies they may suffer the suspi cion that they are not eligible to membership. The Third Congress should be an occasion of great importance to the Movement in this country. It should be of historic significance, for it is another step forward in the develop ment of an organization of the peo ple which, before many more years have passed, will become the hope of a disordered society. THE DIFFERENCE BETWEEN CO OPERATION AND "BUSINESS" While politicians and business men are running the world into a hole, there remains one method that can save it. That is the method of production and distribution for use instead of for profit. And that can be attained by the application in the 110 CO-OPERATION economic life of the three funda mental principles of Co-operation. Some day our professors of eco nomics will wake up to the signifi cance of these principles. The first is: One member, one vote. It means that human beings vote. In the prevalent profit cor poration each share of stock votes. That means that money rules. The god of dollars sits on the throne of profit business—civilization cannot exist in a monarchy of money. The second principle is: Surplus- savings ("profits"), the difference between net cost and selling price, shall be used for the common good or shall be returned to members in proportion to their patronage. The ordinary profit-making corporation returns this money to the stockhold ers in proportion to the amount of stock which each owns, after paying big salaries to the officials who ma nipulate the business. The co-oper ative society in not giving it to stock holders in proportion to their stock holdings, but to patrons in propor tion to their patronage, thus has no profit. The member of the co-operative society puts in some original capital to buy a supply of goods. He goes to the store and gets goods for which he has already invested. In order that the society may have cap ital to replenish the supply, every time he takes goods away he de posits with the society money enough to purchase that amount of goods again, and in addition he de posits enough more to make up a sum equal to the prevalent retail price. These deposits accumulate in the treasury. Goods are replen ished. At the end of the quarter the deposits are returned to the members less the amount necessary to pay for the goods the member has taken and for the overhead costs. It is a mutual banking, joint buying and distributing business, but not a profit business. There are savings, but not profits. Profits are made only where sales are made to non- members. For convenience, the lingo of profit business is used and sales are spoken of. Properly speak ing, the co-operative society makes purchases for its members who con sume the commodities purchased; but the society does not sell to its members. It distributes to and for them. The third principle is: If interest on capital is paid, it shall be prede termined and fixed at the minimum current interest rate. This means that, no matter how large the sur plus-savings (or "profits") may be, invested capital has no claim upon them excepting to receive its fixed interest rate. What remains, after paying this interest, is used as de scribed above under the second principle. This again limits the re wards which capital receives to the simple wages of capital. In Co-op eration capital is paid as a servant; in profit-business capital rules, and gets all. In the course of time, when com petition with profit-business shall be no longer a pressing problem, the last of these methods will be abol ished and the second will be re duced to a vanishing point. Today interest must be paid because the consumer can get interest on his capital in the profit-making bank. Co-operation should not deprive him of this. When profit-making is no longer the dominant business sys tem, the costs of goods will be lower and the need to pay a current retail market price will no longer exist. In other words, prices to the con sumer will be cost prices, plus a small amount for social purposes and administration. It is important to keep these three principles before the people. They must be adopted sooner or later. The more people who know about them the sooner the world can be gotten out of the hole into which the profit- system of business is rushing it. CO-OPERATION 111 DESPITE MISTAKES Abraham Lincoln said, "God must have loved the common people, He made so many of them." Their power to survive and perpetuate themselves has been very great. What they have suffered and come through is graphi cally described in the series of books by Eugene Sue, entitled "The History of a Proletarian Family." Still here they are, these common people, strug gling along to find a way up and out toward the light. Now we see them attempting to solve their problems by means of Co-operation. There seems to be something about this Movement that fits it to the common people. Despite every sort of obstacle and every sort of mistake, it goes on succeeding and moving toward the light. There seems to be some sort of natural protection always saving it, always casting about it a spell of life. As one studies the histories of the British societies that date back more than half a century, he finds the hor rible trials through which they have survived. The substantial society in many an English town succeeded after many others had failed. The incompetent manager, the dishonest treasurer, the indifferent and disloyal members, the ignorant and stupid di rectors and the scheming, profit- business men of the town, all made success difficult. But often after re peated failures, after being knocked down and battered and bruised, Co operation has gotten up and made good. There is no business mistake in the whole catalog of human errors that co-operative societies have not seized upon and cherished as though it were a virtue. They have fumbled and groped, and gone on. Co-opera tion has succeeded in spite of every kind of stupidity. And yet the failures of co-operative societies are not so numerous as those in profit-business. These plain work ing people, unschooled in the affairs of business, have been seen less often in the courts of bankruptcy than the educated and once rich men from the world of business. There is an eter nal principle in Co-operation that makes for success. Now the time has come when ex perimenting is no longer necessary. The test by trial and error need not be applied. In almost every country of the world there is a national educa tional organization which stands ready with information on all prob lems of Co-operation. Standardized advice and guidance are available. The day has passed when working people must make the long journey afoot to Rochdale. Rochdale and the lessons of a thousand failures and ten thousand successes are now with in the easy reach of all. The great and inexcusable mistake now is to make any mistakes at all. THE HONEST MANAGER Once upon a time an honest man appeared at the gates of heaven and asked admittance. Peter opened the door, looked him over, heard his plea and asked him his name and address. Peter then disappeared to look him up in the heavenly address book. After a long time Peter returned, shrugged his shoulders and informed the man that no such name was to be found. But as the man, standing before the door of heaven, looked so honest, Peter asked him what had been his occupation on earth. There upon the man replied that he was the manager of a co-operative society. The earnest features of Peter sudden ly became illuminated. "By the Arch angel Gabriel," Peter exclaimed, "that explains it; I looked in the wrong place; the co-operative society managers are in the Book of Mar tyrs!" The manager who is faithful to the ideals of Co-operation must be long- suffering and patient. But in the end his reward should be the satis faction of seeing a successful society. And no single individual can contrib ute more to that success than he. 112 CO-OPERATION THIRD CO-OPERATIVE CONGRESS The Co-operative League calls upon its constituent societies to send delegates to the Third Co-operative Congress, to be held at CHICAGO, ILLINOIS, OCTOBER 26, 27 and 28, 1922 This Congress is of the utmost importance. Every society which is a member of The League should make an effort to be represented. Only delegates of constituent societies may vote. All consumers' societies — distributive stores, banks, wholesales, restaurants, laundries, bakeries, housing, recreational, and educational societies, etc., which are members of The Co-operative League, are en titled to one voting delegate, and an additional voting delegate for every 500 members above the first 500 or a majority fraction thereof. Dele gates and alternates should be elected at the earliest possible member ship or board meeting. Societies are urged to send as many other non- voting delegates as possible. All co-operative societies in the United States which are not mem bers of The League are entitled to be represented by fraternal delegates, provided that they comply with the following requirements: (1) One vote for each member; no proxy voting. (2) If capital is paid interest it shall be not more than legal current rate. (3) If there is surplus-saving ("profit") it shall be reserved for expansion, used for the general social good, employed for the common benefit of the members, or paid back as cash savings-returns ("dividends") in proportion to patronage or service. (4) Democratic control. In addition to the above: Producers' copartnership societies and agricultural marketing and service societies, which comply with the above requirements, are invited to send fraternal delegates. Trade unions, educational societies, and other organizations, not co-operative in form, but favorably interested in the promotion of the Co-operative Movement, are invited to send fraternal delegates. The courtesy of discussion may be extended to Fraternal Delegates. Members of co-operative societies, trade unionists and individuals who are interested in the promotion of the Co-operative Movement are invited to attend the Congress. Among the subjects which will be presented and discussed are the following: District Wholesales; Model Co-operative Laws; Ac counting; Banking; How to Meet Chain Store Competition; How to Avoid Credit Trading; How to Promote Education; Co-operation and the Labor Movement; the Problem of Income Tax; Store Managers' Problems; Laundries; Eestaurants; Housing, etc. The names and addresses of Delegates, Fraternal Delegates and alternates should be sent to the Executive Board of The League before the first of October. The place of meeting will be published in the magazine CO-OPERATION, and the information will be sent to Delegates upon the receipt of their names and addresses. THE CO-OPERATIVE LEAGUE, THE BOARD OF DIRECTORS. J. P. Warbasse, President. John F. McNamee, Secretary. CO-OPERATION 113 SEEN HERE AND THERE PLYMOUTH SOCIETY HAS BAD AND GOOD FORTUNE By J. P. W. The Plymouth Co-operative Soci ety, like most British societies, had its ups and downs. It was started by eighteen people who used to meet in Charles Godanew's shoemaker's shop and read aloud Holyoake's "History of the Rochdale Pioneers." They got so much enthusiasm that they had a meeting of organization and raised among themselves $4.50. When this sum had been increased to $15 they rented a room for thirty cents a week, borrowed a pair of scales, purchased $12.50 worth of goods and started business. That was in 1860. And they have kept .hammering away ever since. But they had trou bles, and just the kind of troubles that send many an American society to smash. The sixth year of the society was especially troublesome. There were many discouragements. "Then the cash box disappeared and there was suspicion, discharge and subsequent court proceedings, the whole lasting nearly a half year. For that period there was no dividend paid, neither could interest be paid on share capital and in addition the little reserve fund which had been accumulated was absorbed. By the end of the year confidence was not yet restored for the year following showed re duced membership and smaller trade." Thus the records say. At the end of forty years, however, their membership had reached 25,000. They owned Several blocks fof the best buildings in the city, together with their own farms in the suburbs. Then private profit-business decided to make a final effort to destroy the Society. The private traders saw their occupation going and entered upon a campaign of slanderous pub lications concerning the Society. They even held an anti-co-operative demonstration in the Guildhall. The Educational Committee of the society took up the challenge and so effect ively posted and pamphleted the town with facts and figures relating to the society as to bring 550 new members into it in one month. Not yet con tent, the Traders' Defense Associa tion of Plymouth published in the Traders' Journal scurrilous and un true statements about the Society. The authors were promptly prose cuted in the courts for libel with a victorious result for the society. Things went along .smoothly until the war. The society bought a vessel for $130,000 to carry its coal from Blyth to Plymouth. Soon, however, the British Admiralty discovered the vessel and the Government took it over to carry supplies to the North Sea. One stormy morning she struck a mine and was sunk. Because of the splendid arrangements ship owners had effected with the Government for vessels taken over, the society came in as a ship owner and was awarded $230,000 for the boat—a clear profit of $100,000—thanks to the profiteers who were running the war. The Society continued to prosper. It now has 67,000 members. The share capital amounts to $5,000,000 and the loan capital to $250,000. The annual sales are $12,000,000. The annual surplus-savings ("profits") are $1,400,000. Its farms and fac tories produce $2,400,000 worth of goods yearly. It has 37 grocery stores, 25 meat stores, 20 dairy products stores, 12 bakery and confectionary stores, 7 shoe stores, 23 green grocery stores, and .several stores for house furnish ings, dry goods, clothing, china and glassware. It has coal and wood yards, fish stores, laundries, boot re pairing shops, carpet cleaning and dyeing works, leather and saddlery goods, window cleaning business, to bacco stores and drug .stores. It has a slaughter-house, a sausage factory, a milk pasteurizing plant, a jam fac tory, a bakery, 8 shoe-making shops, 114 CO-OPERATION a furniture factory, a clothing fac tory and 9 farms of a total of 3,000 acres. It distributes over 50,000 tons of coal a year among its members, in which service it uses its own three- masted schooner, motor barges and railroad coal cars. The society has 2,500 employees. It owns 215 horses, 140 vans, 7 steam wagons, 35 motor trucks, 100 railroad cars, 17 sight-seeing automobile om nibuses, 7 touring cars, 9 milk trucks, 113 milk wagons. On its farms it has 215 milk cows, 336 bullocks, 850 sheep, 1,200 head of poultry and 264 pigs. Its daily milk output is 4,000 gallons and it uses 1,000 sacks of flour weekly. Its beautiful "holiday house" in the country is in constant use. It makes an appropriation of $15,000 a year for the use of its Edu cational Committee, which conducts classes, lectures and many other edu cational activities. The society's library contains over 12,000 volumes. The members borrow 2,500 books weekly. A monthly magazine is pub lished. Five district branches of the Women's Guild each hold weekly meetings. What this Society has done for the people of Plymouth is beyond calcula tion. Since it was started, it has dis tributed to its members $115,000,000 worth of goods, in which they have been guaranteed freedom from adul teration and every form of cheating. In doing this it has made a surplus- saving for these people of $17,000,- 000. Plymouth has many poor fami lies that have been put on a self- supporting and .self-respecting basis through this society. Its educational influence has permeated every home in the city. But above all, its important service has been in training simple people to administer industry. This is the con tribution made by co-operative soci eties which will have a profound significance in the reorganization of the world. THE CO-OPERATIVE MOVEMENT IN MILWAUKEE By DANIEL W. HOAN Mayor of Milwaukee The first co-operative venture to succeed here was a savings bank. In 1912 twenty-five Co-operators, of whom I had the honor of being one, signed an application for a charter from the State of Wisconsin. The feature of our charter is that each member has one vote, the law re quires the sale of no stock, and all of the profits of the enterprise go in interest and dividends to those who deposit their funds in the bank. The charter being granted, a lit tle room was rented in the down town district on the second floor of an old structure which looked more like the office of a country doctor than of a bank. Neverthelss, the workers began to place their sav ings in this bank. To keep down expenses, the President, Mr. Charles Whitnall, donated his .services to the institution for several years. The money taken in was securely invest ed, principally to interested persons desiring to build homes, while the surplus was invested in municipal bonds. In this way the entire sav ings of the institution were used to encourage municipal enterprise and home building. The deposits of this little institution have grown with each year until today they are $600,000. With this growing ac tivity, a splendid new location was rented on the first floor of one of the principal streets in the city. The bank bears the title, "Common wealth Mutual Savings Bank." It has never charged to exceed 5 per cent on any of the loans which it has made to help struggling workers, CO-OPERATION 115 nor has it ever charged more than a nominal fee to cover the expense of making the loan. In spite of this, the bank has been able to pay to its depositors during the greater part of its existence a larger rate of in terest than any other savings bank in the city. It is now regularly pay ing 2>Vz Per cent, which is ^ per cent higher than other banks are paying to depositors; and during the last year was able to declare an extra dividend to these users of the bank. We are very proud of this enter prise in Milwaukee and its increas ing usefulness. We trust in the near future that the Board of Directors will add a cheeking account feature and otherwise enlarge its activities. The next co-operative venture to succeed was the Milwaukee Con sumers' Co-operative Association. Out of the experience of the Wom en's Auxiliary of the Railway Broth erhoods in securing orders and sell ing carloads of canned goods to the railroad men, the sentiment was cre ated for a real co-operative enter prise to take care of this work. In the fall of 1920 the interested workers met and applied for a char ter. I had the good fortune to be elected to the board of directors at the first meeting. When the sum of $16,000 had been paid in in Febru ary, 1921, we purchased our first store. The business and member ship grew so rapidly that we were able to establish three more retail stores before the expiration of one year. By January 1, 1922, these stores had done a business in the eleven months of their existence of $156,000 and were able to declare a savings-return payable on July 1 of this year of 3 per cent. The membership is now over 1,300, and the business is increasing with satis factory strides. A splendid system of accounting has been inaugurated at the beginning of this year, which gives the directors a monthly state ment of the receipts and disburse ments of each store. When supple mented by regular inventories we have a complete check which in sures the success of this institution. We are already able to buy some of our articles in carload lots, and we are making a drive to increase our capital to make as many purchases as possible along this line. During the first year we were able to sell our goods as low and lower than most of the stores in the City of Mil waukee. At regular intervals we have held dances and picnics, at which times the message of Co-operation was brought home to the enthusiastic stockholders. In October, 1920, while the cigar- makers were on strike, a cigar man ufacturing business was organized. The stock was entirely subscribed for by the men and women on strike, one-third of the subscribers being women. Its membership has in creased until now there are 164 members. The business was started at once and at the expiration of the first year over 300,000 cigars were manufactured and sold. These ci gars are made by union workers, who draw the union scale of wages. While this enterprise was launched during the financial depression, it is on a growing and sound financial basis. In February, 1921, during the general lockout of tailors, forty or more of the strikers decided to in vest their savings in a tailoring en terprise. This business was started and conducted during the worst of the depression; nevertheless, through the efforts of its members, the enterprise is 100 per cent intact; its membership has been increased, and its business is growing. Last, but not least, there has been launched in Milwaukee one of the most interesting Co-operatives of the United States, namely: home building for working men. During the war I had the pleasure of naming a committee fairly repre sentative of all the elements of the1 community, to answer two questions. First—Is there a housing shortage in the City of Milwaukee? 116 CO-OPERATION Second—If so, what, if anything, shall be done by the municipality? The Commission reported that there was a serious housing problem and that a special co-operative law should be adopted by the legislature to permit the incorporation of the Co-operative Housing Company. This was done and the enterprise launched. The company is a Roch dale co-operative in every feature except two. First—Like some English co-oper atives, the city and county can sub scribe to the capital stock. Second—Instead of having one vote for each stockholder, votes are allowed in proportion to the number of shares. This departure was ne cessitated, since at that time it was not believed that the $250,000 re quired could be secured without it. An appeal to the business men to purchase the stock would have to be made, and it was thought impossible to sell them a 100 per cent Rochdale plan of house building. However, this one deviation can be remedied later on when the investing business men are gradually paid off by the occupants of the homes. The com pany was organized for $500,000. Half of this was preferred stock, guaranteeing a return of 5 per cent. This was the stock that was sold. The city and county each took $50,- 000; and the remainder was sold to business men. Twenty-eight acres were then acquired in a beautiful location within a block of street car service. The land was platted with out charge by the very best city planning experts. These lots are 40x100 feet, affording ample sun light and air as well as space for a garden. In the center of the plot a playground 204x466 feet is pro vided, which will furnish play space for the children. Twenty-five houses are now under roof; six others will be under roof in two weeks. Plans are being carried out to put on a drive to supply the necessary funds to build at least one house a day during the present summer and fall. We have sufficient information from the cost sheet already worked out to state that these homes will be turned over to the occupants for from $1,000 to $1,500 less than they could be secured under the old plan. This is possible— First—Because of the donation of many services. Second—The elimination of real estate men, contractors and other useless extravagance. Third—In the purchase of the material for the houses at wholesale. The union scale and hours of em ployment have prevailed through out. There has been a remarkable demonstration of the efficiency of the organized crafts here. The occupant of a home does not obtain a deed. He subscribes for common stock equivalent to the value of the cost of his home and lot, which will be around $4,000 for a 6-room house. They will pay down 10 per cent of the cost of their stock, which money will be used to retire or pay off that much of the pre ferred stock. On the unpaid bal ance they will pay interest. All other expenses, like taxes, water, re pairs, etc., will be paid to the co operative company in monthly in stallments. While figures are not yet available, I predict that the ren tals ordinarily paid by workmen for similar houses will not only pay all the expenses of the houses, but will pay for the stock. The payments will cover both fire and life insur ance so that in the event of disaster the members of the family are pro tected. While the occupant does not secure a deed, he is given a contract which is much more than a lease. It will guarantee to him permanent tenure to himself and heirs while he obeys the rules of the co-operative company. Another advantage of this method of home owning for the workers is that in case of severe illness or ne cessity of leaving the city, the com pany agrees to purchase back the occupant's paid-up stock at the par value. CO-OPERATION 117 As rapidly as the occupants of the homes pay for their common stock the preferred stockholders will be paid off and the occupants will be come the sole managers of the enter prise. Its popularity is assured by the fact that there are already more than 900 applicants for the seventy- five or more houses, finances for which are assured. We have no hesitation in saying that the co-operative offers the best solution of the housing problem which has yet been devised. Even the socialists of Europe have aban doned their position for municipal houses in favor of the co-operative idea. In closing, let me say again that Co-operation has taken a firm hold in the City of Milwaukee. VACATIONS FOR CO-OPERATORS In the dog days of summer one's thoughts naturally turn to the sub ject of vacations. While only a hand ful of co-operatives in this country have considered establishing vacation camps for their members, it is a com mon practice abroad to provide such facilities. For example, the Union Des Cooperateurs of Paris, the Fed eration of all co-operatives in Paris, has established five vacation colonies for the exclusive use of its members and the members of societies affiliated with the National Federation of Con sumers' Co-operative Societies. Four of these summer camps are on the seacoast and one is in the mountains. Co-operators who present a certificate from their society, certifying that they are members, are entitled, at a moderate rate, to avail themselves of the co-operative camps. There is no charge for children under three years of age; children from 3 to 9 years of age are charged half-rates. At Limoges and at Nancy, the local co-operative societies in conjunction with their municipalities, have estab lished a colony where several hundred children may spend their vacations. The Federation in Paris is considering the establishment of summer camps for the ch