The source of this uncorrected OCR text may be viewed in the DjVu format at: http://fax.libs.uga.edu/HD2951xC776/co23 or http://purl.galileo.usg.edu/ugafax/HD2951xC776/co23 CO-OPERATION Formerly "The Co-operative Consumer" PUBLISHED MONTHLY BY The Co-operative League of U. S. A. VOLUME IX January—December 1923 CO-OPERATIVE LEAGUE OF U. S. A. 167 West 12th Street, New York City 1923 JAN 17 "4 INDEX A Page Advertising, Co-operative Store................................... .............. 28 A. P. of L. Convention Advises Co-operative Insurance...... 211 Agricultural Co-operation, Report of Committee on....... ......... ..... 40 '' Co-operators Celebrate in Wisconsin........... ......... ....... 158 Alanne, Severi ............................ ..... 134, 150 Amalgamated Bank Prospers............. .................... ........ 14, 193 Aristocracy to Democracy.............. ......... ........ .................... 20 Australia, Co-operative Stores in........... .... 189 Austria, Co-operation and Labor Unite in.................. ....... ............ 170 B Bakeries, Co-operative, Help Strikers.... ..... 66 Bakery, A Polish Co-operative................................................... 120 Baltic, On the Shores of the...................................................... 170 Bank, Amalgamated .. .............................................. 14, 193 Banking, Co-operative ...................................................... 105, 108 " Labor ................................ ............................... 76 Bank Law, Co-operative.................................... ............. 64 Bell, T. H................................................................... .179, 216 Bergenfield, N. J., Co-operation in............................ ................... 114 Bergengren, Roy P............................................................... 105 Black Or Red?.................................... . 37 Bloomington, Illinois, Co-operative Picnic........................................... 143 " " Co-operation Booming at...... ............... ... 213 Bower, C. D......... ..... 166 Bread, The Price of........................................ ......... .......... 200 Britain, Business Conferences in................................................... 190 British Co-operatives Acquire Lands of Aristocracy.............. .................. 20 " C. W. S. Again Finding Prosperity.................. ..................... 118 '' Elections and Co-operation................................................ 13 " Milestones .............................................................. 189 Bread for Pood or Profit?............................................... ........ 92 Bread or Stones?.............................................. .......... 56 Broadcasting Co-operation ...................... ............. ........... 15 Brookhart, Senator S. W....................... .... .48, 64, 84, 155 Brownsville, Co-operative Bakery.............. .............. ... 12, 47 Building, Co-operative, in Copenhagen.............................................. 62 Building Guild Pails.. . ......... 100 Burgess, P. W................................................................... 116 C Cafeteria, "Our Co-operative"................... ........ ... .65, 192, 194 " " " Executives Abroad ....................... ........ 143 Canadian Union Reports Progress.................... ................... 176 Capitalism, How We Get Rich Under.... ........ ....... 3 '' , Program for Working Class..............................:............. 39 Catholics Laud Co-operation...................................................... 195 Central States Co-operative Wholesale.................................... .139, 191, 193 Centrosoyus, The 25th Anniversary of............................................. 209 INDEX Chain Store Atrocities............. ............ " Stores Sell Decayed Food.... ................ Cheel, M. W........... ....... ................ Cleveland District Co-operative League....... Cloquet, Amalgamation at.............. ....... Clusa ...................................... .... Coal, Report of Committee on Co-operative Distribution of. Coeur D'Alene, Idaho, Society.. . Coleman, George D........... Colleges, Russia's Co-operative. Page .16, 34, 52, 88, 106 ........... 176 ....... 70, 112, 130 .... ......86, 160 .............. 211 .............. 17 .. 22 ............. 121 ............ 132 .............. 189 Compsall Co-operative Society........... ........................................ 93 Congress, Third Co-operative ........................ 4, 7, 22, 40, 76 '' Vested Interests in.......... ................................ 146 Construction, Co-operative, in Philadelphia........................... ........ 116 Coolidge, President ................... ................................ 201 Coombs, Caro D...................... ......................... 94 Co-operation and the Wage System........................ ........ ............. 129 " in the Ruhr...................... ......... ....................... 91 Co-operators' Day ................................ - - - - .104, 169 Co-operative Central Exchange Societies..... ............... ...... 134, 150 " " " Wholesale .....................................101, 174 " Democracy, J. P. Warbasse (Book Review)..................... . 122 " Electric Association, Minneapolis.. ......... ................ 21 " Societies Do Not Sell to Members.. ......... .............. 98 '' Society of America............... .............. 20 ' * Stores and Strikes in Pennsylvania... ....... 80 Co-operatives and Rats................................. .......Ill Copenhagen, Co-operative Building in.. .................................. 62 Correspondence.. ............................... -17, 35, 53, 72. 89, 125, 143, 162, 179, 216 Course on Co-operative Organization and Administration . . 15, 52, 140, 171, 186, 205, 210 Creamery, Franklin Co-operative..... .......4,17,30,50,84,141-142,174,183,193 Credit Unions ........................................ .... .94, 174, 195 Crystal Falls, Michigan, Success at... ............................................ 27 Cup and the Lip, Distance Between the.......... 164 D Danish Co-operation ..................................... ........ 157, 170 Denmark, Co-operative News from............ ......... 26 Directors' Page .... ....... ......... 123, 160, 176, 196 District League Activities.................................. . .51, 133, 159, 214, 215 Disturbing the Meeting .............................. .................. 93 "Dividends", Getting Along Without............................................. 183 E Education, Co-operative.. . .18, 52, 84, 103, 140, 171, 178, 183, 186, 189, 194, 205, 207, 210, 212 Educational Contest ....... . ... ........................ ................. 12 Educational Department of Central Exchange.. ........... .......... 102 Employees Co-operators? Are your.................... 125 " of Co-operative Wholesale Society............. ................... 75 '' Who Co-operate ................. .... 4, 30 English C. W. S......................................... ................ .188, 189 European Survey by Senator Brookhart. ................ ...... 155 Europe Is to Be Saved, How......... ....................... .......... ....... 182 Expense, Check Up Overhead........................... ......................... 86 Expenses, Keeping Down Exploiter Becomes Virtuous Citizen. INDEX 57 92 27 2 •63 173 120 45 48 12 121 40 Factories in Germany Subsidized...................... .............. Factory? How May Organized Labor Get Control of the.. Eake Co-operative in Receiver's Hands (L. R. Steel Co.).. ............. Fake Co-operative In Distress in Philadelphia..... ......... ......... Fargo Rochdale Society .......... ............ Farmer Co-operation and Food Prices..... .................. ......... Farmers and Co-operation ................................. ......... Farmers' Co-operation in Iowa...... ................................ '' Co-operative Marketing ................... ......... " Educational and Co-operative Union...... ............... Farmers, Government "Aid" for.................. ............................... 1 Farmington, Illinois, Co-operative Society.............. ...... ...... -66 Fascisti, The .................................................................. 13, 37 Finland, Political Neutrality in................................................... ;goo Finnish Co-operative Homes ............................ ...... 182 " Co-operative Trading Association of Brooklyn.... ...................... 66 " Co-operatives in United States.......................... .101, 134, 150, 174, 210 '' Neutrality and Political Independence................... ................. 208 Five Years of Co-operative Adventure in Bergenfield, N. J... ............... 114 Floating Co-operative Store, Australian.......... ......... ................ 189 France, Co-operative Development in.... ................. ..................... 117 Fogelson, Boris ................................................. ............... 29 Franklin Co-operative Creamery.................4, 17, 30, 50, 84, 141, 142, 174, 183, 193 Fraternal Co-operative League of Philadelphia..................... ............... 116 "Freeman. The," on Co-operation................................. 32 Furniture Fire Insurance Through Co-operation............. ............ 31 German Factories Subsidized..... ...................... .................... 27 Germany, Co-operation in........................ ....................... 184, 202, 207 German Towns .Toin Co-operative Society.. . ......................... 55 Gide on the Ruhr Invasion.......................... §3 Government Can Do For Co-operation, What the.... ..... 148 Government " Aid" for Farmers.... .......... i Greetings from Russia and Belgium................ .......... 36 Greetings: 1923 ..................................................... ..... 1 H Harding Endorses Co-operation ............................. 133 Harris, Emerson P................................ ....... 137 Hoan, Daniel W. ............................................................. 58 Holy Land, Co-operation in the................................................. 170 Homes, Self-made.... ............................ .................... 182 Housing, Co-operative....................,....:... ..............58, 109, 173, 185, 189 Humpty-Dumpty Co-operatives ................. ....... ............... .. 75 Income Tax Victory for Fitchburg, Mass. .......... ............................... 172 Insurance, Co-operative... .......................... 29, 31, 44, 119, 121, 211 Insurance Profits ................................................................ 213 International Alliance Meeting ................................................. 50, 67 '' Co-operative Exhibition ............................................. 149 INDEX Page International Co-operative Trade ................................... ............. 188 " Co-operative Women's Committee ........... ......... ......... 67 " Labor Conference Endorses Co-operation....... ................ .... 51 Italian Co-operative Societies Pillaged........................................ .... 38 Italian C. W. S. Closes Doors............................ ............... 138 Italy: Land of Co-operative Diversity.. ......... ...................... 25 Japan to Join International Alliance. Jewish Co-operative Bakeries ... 190 .66, 159 K 121 Kansas Farmers' Union ..................................................... Keen, George (Canadian Co-operative Union) ...................................... 216 Kennedy, Dr. G. L....................................... ..................... 22 Kraus, Wm. A. ....................... ......................................28, 114 INDES Page New Bedford Co-operative Bakery Celebrates Anniversary........................ 158, 172 New School for Social Research............................................... 103, 212 Newspaper Used for Co-operative Education....................................... 120 New York Co-operatives Merge.. ...................................... 192 Niederschoenthal, The Mayor of ... ................... ......... ......... 199 Non-Partisan League ............................................................. 35 Norris-Sinclair Bill .............................................................. 1 Northern States Co-operative League........................ 32, 51, 85, 160, 171, 195, 214 Nurmi, H. V., Director of School.................................................. 210 Nurnberg, Germany ................... .......................................... 184 Operating Expenses in Retail Grocery Stoves............ .................. 87 Order of Business for Directors' Meeting........................................... 177 Our Co-operative Cafeteria................................. .........65, 194 Overhead Expense, Check Up..................................................... 86 Labor Banking.......................... " Conditions in Co-operative Factories.. '' Conference Endorses Co-operation .... " Fight, Co-operation Turns the Tide in. '' Leaders and Co-operation............. Lansdon, W. C. .......................... Laundry and Cafeteria Merge.... ......... Lecture Course in Co-operation............. Legislation, Report of Committee on......... Lenin on Co-operation................. Life Insurance, Co-operation in.......... Light from the East...... ................ Llano Co-operative Colony................ Long, Cedric ................ ............ Lunches, Half Hour....................... ....... 132, ...27, 186, M Madras Co-operative News.... .......... Maier, K. H. ......................... ....... Manager and Your Store, The...... Managers, Co-operative .............. ........ Management Always to Blame ? Is the..... Man Swamped by Machinery.................. Marketing and Distribution Report...... Marketing, Co-operative ....................... Match Factory Bought by Finnish S. 0. K. Maxwell, Sir Wm.—Book Review......... Mayor of Niederschoenthal, The.......... McCaleb, W. F. ............................... Membership Drives ......................... Milford N. H. Society............ ......... Milk Trust, How Co-operators Beat the.......... Miners Tackle Coal Business at Staunton, Illinois. Moore, U. G. .. .................. ......... N Nationalization or Co-operation ?. '' Programs ..... 76 75 51 193 166 40 192 106 7 146 118 128 167 205 194 209 98 124 119 165 74 164 197 139 143 199 76 123 15 17 176 9 53 19 Parker, Florence—'' Study of Co-operation in the U. S."............................ 71 Peoples' College Course of Study in Co-operation.................. ................ 178 Picnic in Illinois—Central States Society....... ................................... 193 Polish Co-operative Cartoons ..................................................... 34 Polish President a Co-operator.................................................... 67 Political Neutrality ...... ............................................ 200 Political Prisoners ....................................... ....... 33 Political Village Joins Co-operatives............................................... 147 Prices Lowered by Co-operatives.................................................. 57 Producers or Consumers Control Production ? Shall...... ....................... 179 "Produktion"—The Hamburg Society .......................................... 202 Profits on Meat.................................................................. 21 Promotion of Co-operation by Trade Unions...... ................................ 4 Publicity Can Do for Co-operation, What...................................... . 163 K Rappaport, H. .................................................................. 7 Report of Meetings Held in Illinois, Ohio and Pennsylvania......................112, 130 Reports to Third Co-operative Congress......................... ..4, 7, 22, 40, 76 Rieper, J., "Hamburg Society 'Produktion' "...................................... 202 Ruhr, Co-operation in the - - - - ......................................... 91 Ruhr Invasion ..... ........................................ ...... 24, 83, 99 Russell, Bertrand ............................................................... 118 Russia, Co-operation in.. ...................................67, 100, 154, 171, 189, 190 S Salter, R. H. .. ................................................................ 17 San Diego, Cal.. ................. ....................................... 175 Sapiro, Aaron ...................................... ........ 146 Saving and Loan Associations of Iowa............................................. 174 School, A New Co-operative—New York City....................................... 103 School, Co-operative Training............................... 52, 84, 140, 171, 186, 205, 210 Seattle Food Products Association................................................. 9 Senate, Teaching Co-operation to the U. S.......................................... 48 Senators Study Co-operation Abroad................ ............................. 84 Sheridan, Clare, Correspondent on Russia.......................................... 190 Sherman, Caroline B. ............................................................. 45 Sidelights on the Co-operative Training School at Minneapolis........................ 205 INDEX Page Skunks, Catching ............................ ................. 147 Socialists Want Co-operation ? Do.. ................... ......................... 38 Soo Co-operative Mercantile Association........................................36, 84 Staunton, Illinois, Co-operative Society........................... ...... 23 Steel Co., L. R.................................................................14, '63 Steen, Herman, "Co-operative Marketing"—Book Review........................... 197 Stiles, T. D. ................................................................. 80 Stock Dividends of Corporations.............. ................................... 92 Store Expenses? Why Not Publish................................................ 137 Stores ? Where Are the City Co-operative........................................... 110 Story of the Keg of Beer.............................. ................ 3 Strikes and Their Effect on Co-operative Stores.................................... 80 Strong, Anna Louise ............................................................. 154 Study Course in Co-operation............................................. ...... 178 Subsidized Workers' Factories in Germany......................................... 27 Sweden One-Sixth Co-operative ................................................... 155 Switzerland, Co-operation in ............................................... - .. 199 T Taylor Springs, Illinois Co-operative Society.................................... 142, 194 Telephones, Co-operative ....................... ................................. 65 Tenants' Housing Co-operative in New York........................................ 173 Towns Join the Co-operative Society............................................... 55 Trust Beaten, Milk .................................. ................. 17 Tucker, David ...... .................................................. 115 i U Ukranian Republic ...................... ..................................... 128 United Consumer - Co-operative Journal ........................................... 175 United Mine Workers ........................................................... 81 United States, Co-operation in the......... .................................... 71 United Workers' Co-operative Association......................................... 115 "Uplift" vs. Justice ............................................................ 75 Utica Co-operative Society............................. ....................104, 312 V Vacations ? Do Your Clerks Have.............................. 107 Villa Grove, Illinois .............. ............................................. 49 Vital Issues (Editorials)..................1, 19, 37, 55, 73, 91, 109., 127, 145, 163, 181, 199 W .. Wage System, Co-operation and the................................... .......... 129 Walker, John ................................................... ................ 4 Warbasse, J. P., "Co-operative Democracy"—Book Review.......................... 122 Ward Baking Co. ............................................ ................ 93 Wheeler, Senator Burton K....................................................... 157 Where Do We Go From Here?.. .................... ........ 74 Wholesale, Co-operative (U. S.).. .. ............................. 101, 139, 174, 191, 193 Wholesaling, Successful. . . . ..................................................... 101 Wisconsin Co-operative Picnic ........................................ - - 158 Women Co-operators Protest Ruhr Invasion........................................ 67 Would Benefit Nobody but the Consumers......................................... 201 Woodcock, Leslie ..................................-.••••..•.••••••••••.••-•••--• 184 Workmen's Fire Insurance................... ........................31, 119 I' I 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 12th Street, New Tork City. J. P. Warbasse, Editor. Entered as second class matter, Decem ber 19, 1917, at the Post Office at New Tork, N. T., under the Act of March 3, 1879. Price $1.00 a year.' Vol. IX, No. 1 JANUARY, 1923 10 Gents VITAL ISSUES GREETINGS: 1923! Those who labor with hand and brain for the cause of Co-operation, we greet with comradely good wishes, loyalty, and cheer. Those who desire the growth and success of Co-operation, we greet with the assurance of devotion to the ful filment of their desires. Those who yet live without interest in Co-operation, we greet with the hope that soon the day may come when they will awaken to a knowledge of its saving power. Greet ings to all, in this New Year 1923! Slowly and painfully the world is learning the sad lesson that it is in the grip of forces which would lead it to destruction. In the high places are the agents of a woeful power. But gradu ally and with glorious assurance the world is discovering that the people are developing a force to save themselves. Year-by-year and step-by-step Co-op eration grows. It enters the dark places and brings light. It feeds the hungry. It houses the homeless. It cheers the hopeless. While politicians struggle in despair, while the old profit-system de cays, Co-operation with steady swing moves on toward eternal justice. We greet the New Year with con fidence and hope that it will bring the world yet nearer to the day of its de liverance. And when that day comes, they who bear aloft the light of Co-oper ation in these dark hours will be pro claimed and greeted as the saviors of men. ' GOVERNMENT "AID" FARMERS FOE Many farmers will rejoice over the attempt being made to grant them gov ernmental assistance, through the enact ment of the Norris-Sinclair Bill now pending in the Senate and Congress. Others will be sceptical as to the value of such "aid". The Bill, offered, no doubt, with the best intentions of help ing the farmers who are in a deplorable financial condition, raises an issue be tween the Government and the volun tary, co-operative marketing organiza tions of the farmers. The Norris-Sinclair Bill provides for the creation of The Farmers and Con sumers Financing Corporation, of which the Secretary of Agriculture is to be Chairman. The Chairman and two per sons to be appointed by President Hard- ing, are to constitute the Board of Direc tors, in which the management of the corporation is to be vested. The Fed eral Government is to subscribe $100,- 000,000 of its funds for the capital stock of the corporation, which, according to the language of the Bill, "shall be em powered and authorized (1) To build, buy, lease, and operate elevators and storage warehouses"; to buy agricul tural products from producers and to sell them to any person or consumers; to act as agent of any person or organi zation producing agricultural products, in the sale of such products; to make advances for the purpose of assisting CO-OPEKATION any person or co-operative organization in financing the sale of agricultural pro ducts, among other things. Analysis of the functions which are to be performed by the Farmers' and Consumers' Financing Corporation, dis closes that the corporation, managed by three Directors who are all political ap pointees, is to be permitted to spend $100,000,000 in carrying on functions now conducted on the proper basis by independent, voluntary associations of producers. The Bill would set up in opposition to the co-operative produ cers' organizations a corporation domi nated by a Government (a most reac tionary one, at that), and managed by politicians. We know the interests that control the Government; therefore we know who would control this corpora tion—and it is not the farmers. Nevertheless there are a few farmers' groups, and a progressive legislative group, which have endorsed the Bill. Such groups have always been com mitted to political, rather than to self- help measures. The only explanation we know for their advocacy of the Sin- clair-Norris Bill is the desperate plight of the farmers, who in their opinion require immediate assistance from the Government. They need help undoubt edly. The question is—would a govern ment corporation provide the right kind of help ? We would direct the attention of the advocates of this Bill to the present shaky condition of the Italian agricul tural organization as an example of the demoralizing effect of governmental as sistance to co-operatives. Millions of lire had for many years been loaned by the Italian Government to the co-operatives, which came to rely more and more upon such aid. Now that the hostile Fascist Government is in power, all subsidies have been withdrawn and the Italian co operatives are tottering. It would seem to us that our co-op erative infant in this country will never learn to walk on its own feet if it is to be wheeled around in a rickety govern mental perambulator, by a political nurse of questionable character. H. E. HOW MAY ORGANIZED LABOR GET CONTROL OF THE FAC TORY? If the workers can not successfully get control of the factory by organizing as producers, as experience has shown, how may they accomplish this task which is the hope of the world? The Co-operative Movement offers the solu tion. The Co-operative Movement is the movement of the organized consumers. This is the scientific method. It begins in the practical way and ends with the ideal. It is the only co-operative method that succeeds in the world of competi tive industry. Experience shows that the more members the consumers' so ciety has the better it is for all. An organized craft of workers may adopt its principles. The clothing makers for example, may organize as a consumers' co-operative society. They consume clothing as well as other commodities. They may open a store where the products of the capi talistic shops in which they work are sold. They will buy these products for their store in the capitalistic market, and sell to themselves. And non-mem bers also will buy in their stores. Their distributive business grows. They open more stores. Or other groups open stores, and they federate to form a larger society with larger selling and consuming power. The consumers' so ciety which runs the stores may then start a small factory to produce for it when its sales have reached a volume to justify such a step. As the sales in crease the factory output may be in creased. But the reverse of this is dangerous—factory output in excess of guaranteed sales is the capitalistic method and the method of the producers' profit-sharing factory. By maintaining a distributive business with a member ship of consumers the product of the factory which the consumers own is dis posed of by the scientific co-operative method. This program is slow and requires serious work on the part of the members of the co-operative society. It is not so easy or so spectacular as to take a lot CO-OPEKATION of the workers' money and put it at once into a, big manufacturing plant. But it is the safer and surer way to work to-day in the midst of competitive capitalistic business. Such a society with its retail stores and its factory must connect if possible with other co-operative societies to be come a part of a federation in which other avenues of distribution of its pro duct may be found. But there is one hard thing for the non-co-operative trade unionist to grasp—that is, that in all of this organization the interest of the worker as a consumer must dominate the interest of the worker as a producer. He must grasp this, because this is the only method at the present time that can work in competition with capitalistic industry. The way back to the control of produc tive industry is by the road of consum ers' co-operation. This is more than a theory; it is proved by a hundred years of experience. J. P. W. HOW WE GET RICH UNDER CAPITALISM Old stories are worth repeating if they are good. The story of the two Irishmen and the keg of beer belongs in this category. Jerry and Tim bought a keg of beer which they were going to sell at the Fair at a handsome profit. The brewer took their money and assured them they would make $10 apiece clear if they sold their beer at ten cents a glass. They borrowed a wheelbarrow, rolled the keg aboard, and started off down the road. The Fair was 10 miles away. Jerry and Tim had spent their entire fortunes on that keg of beer—except ten cents which reposed in Jerry's pocket. They must sell that beer and make their for tunes, in spite of the rough ten miles of road and the heavy wheelbarrow. They set out whistling a blithe chorus in anticipation of their happy reward. But even a quarter of a mile is a long distance to push a rickety wheelbarrow when it is heavily loaded. Jerry wearily dropped the handles and suggested that he have a glass of beer, paying Tim the ten cents which constituted his entire fortune. Tim took the wheelbarrow, and they pushed on toward the Fair. Tim, however, was well exhausted even before the second quarter of a mile was covered. He came to a halt, rested on one handle of the barrow, and also had a drink, paying the ten cents back to Jerry. The latter picked up the load, and on they went. So they traveled, alternately bearing their common burden and buying drinks from each other. And each time, the distance between drinks was a little shorter. During the last mile of the jour ney, a hundred yards was too great a distance to manipulate that wheelbarrow without a reviving draught of beer. When they reached the Fair the keg was empty. But worse yet, in spite of the scrupulous care they had exercised in selling one another the beer at the full retail value as the brewer advised, neither the $10 profit nor the original investment made on the full keg had been realized on the business! The buy ing price was right, the selling price was right, the overhead expense was zero—and still there were no earnings! Do you remember those years of the War and up until the end of 1919? How prosperous we all were! Like Jerry and Tim, we drank a lot of beer in those days, and the dimes flew around like snowflakes in a February blizzard. The bankers and newspaper owners all told us the country had never seen such good times as these. But they neglected to tell us that the keg was nearly empty. We have seen dozens of co-operative societies play the same tricks with them selves. They open the new store, and the bell on the cash register begins to jingle as the goods go over the counter to the customers. Ask the directors or manager whether the store is paying and they will quote you the amount of sales for the past week and beam upon you with a foolish pride. Ask them for the overhead expenses, or inquire as to whether apparent profits are at the ex pense of a depleted stock of goods 011 the shelves, and they will act as though you had insulted them by trying to in ject irrelevant matter into the discus sion. The sales were big last week, and CO-OPERATION for them that was enough. Jerry and Tim in charge of the Co-operative Store! The speculator and the gambler (let's call them the capitalists, for short) con fuse money with prosperity or wealth. But all capitalists are not in the ranks of industrial magnates and bankers. We have seen the same capitalist psychology among tens of thousands of workers who think that higher wages means prosper ity, too; they have caught the money fever from the gamblers and have the same fevered hallucinations. Mere money-changing never made a country rich nor happy for long. When we get society organized for service, we will cease to worship money and the temporary power it brings. The Co operative Movement is the road to that goal. EMPLOYEES WHO CO OPERATE The letter in this issue from Edward Solem, Manager of the Franklin Co-op erative Creamery, speaks for itself. That story is but one more chapter in the history of the progressive defeat of profit-making business at the hands of Co-operation. But we are even more interested in the action of the employees of the co operative association than in this par ticular victory. Our cynical friends of other radical persuasions than ours often tell us that the co-operative society is little better than the capitalist employer. Unfortunately, this belief is too often encouraged by the action of many so cieties which employ non-co-operators and fail to educate them in the meaning of Co-operation, thus burdening them selves with dissatisfied, grumbling work ers. No society is worthy to be called co-operative until its employees are all co-operators. The Franklin Creamery owes almost all of its remarkable suc cess to the spirit of enthusiastic devo tion of these men and women working in the service of the public. Other socie ties might make a close study of this in teresting situation, and set about creat ing the same spirit among their own employees. No matter how much it cost, the ultimate gain, in financial returns alone, would amount to many times the original investment in the experiment. C. L. REPORTS TO THE THIRD CO-OPERATIVE CONGRESS PROMOTION OF CO-OPERA TION BY TRADE UNIONS DELIVERED BY JOHN H. WALKER. We, your committee on "Promotion of Co-operation by Trade Unions", after having carefully considered the matter referred to us, beg leave to re port as follows: The first thing to be considered in the matter of "Promotion of Co-operation by Trade Unions" is how to do it with out in any way injuring the trade union organizations. We believe that enough educational work should have been done among the men and women who are part of the particular co-operative organiza tion which is to receive Trade Union funds to make sure that they will keep it on the tried established Rochdale basis. The American Federation of Labor has endorsed only the Rochdale method. It is dangerous to permit anyone to become a member of a co-opera tive society and to take part in its management and direction, who is not a co-operator at heart, and who does not understand the simple principles of operating a co-operative institution. Even where there is only a relatively small percentage of the members of any co-operative society who are not such true co-operators, a campaign of educa tion that will reach these non-co-opera tors should be carried on. After going over the matter carefully, your committee are of the opinion that CO-OPERATION the co-operative district plan of organ ization for educational, advisory, audit ing and accounting purposes, as well as establishing proper methods of book keeping, is an ideal one. We feel that such district organizations should be established in every state and that they should be composed as largely as pos sible of men representative of the Labor Movement, who have the confidence of that movement, and who can speak for it with authority. We recommend that arrangements be made with every or ganization that feels sympathetic to the Co-operative Movement for soliciting donations or providing for regular con tributions to the work of education, and for establishing and building up the Co operative Movement in every state until such time as the Co-operative Movement itself is sufficiently strong financially to do that work. It should be pointed out to the trade unionist that if it is of sufficient impor tance to him and his family, that he should devote his time and energy to establish and maintain a Trade Union Movement which has among its most important purposes securing from the employer the highest wage that his labor can command; he should also under stand that it is equally important that he should organize to protect those wages and to secure full value in the necessaries of life in return for those wages when he spends them. It should be pointed out to him that not only can he save money in operat ing his own retail consumers' co-opera tive store, but that also when there are enough co-operative retail stores in op eration they can unite to form a whole sale which cuts out still more of the middlemen who stand between him and the point of production. It should be pointed out that, as the co-operative movement extends into the field of production, it will enable the trade unionist to own his own job and thereby secure the very safest and sani tary conditions of labor to protect his life and health. As the Co-operative Movement enters the field of production it can also be used to enable him to compel the private employer to grant the same condition in private industry. Where the workers in co-operative so cieties are owners and operators of pro ductive industries, in operating their own plants, buying their raw material, making it into the finished article, ship ping and distributing the products, they have a complete record of indisputable facts as to the cost of every item enter ing into the putting of the finished ar ticle into the hands of the consumer. This enables these workers to understand where there is dishonesty or inefficiency in the operation of the private plants- It should be pointed out to the trade unionist that when the Co-operative Movement has developed into the finan cial field, it will not only establish banks where he may deposit his money and receive the full legal rate of interest upon it, but in addition, he can be sure that those finances will be conducted al ways in such a way as to benefit him. When the Co-operative Movement has developed to the point at which it is operating its own banks, it also provides the most reliable and cheapest kind of insurance against sickness, accident, and unemployment. Building societies can be established and the funds used to furnish the working man the very best kind of a home at actual cost. In all of these activities, as the worker has con trol, he is enabled him to see to it that only union material is used and union men and women are employed. This means a continual building up and strengthening of the power and influ ence of the Labor Movement. The Co-operative Movement brings the women—the mother, the wife, daughter and sisters of the workers— into the struggles of Labor in a helpful way. They not only come to understand the commercial and financial problems, but also to understand the industrial problems of the workers. It should be pointed out that the Co operative Movement establishes a basis on which the workers in agriculture can meet on an equal footing with the work ers in the other industries. They can help each other and see each other's problems from a friendly point of view. This educational work should be done where possible through the official pub lications of the Trade Union Movement. The officers of the trade union organiza tions should be reached with pamphlets CO-OPERATION CO-OPERATION and books. Speakers should address the regular meetings of the local trade unions and distribute or sell literature and books on Co-operation. General public meetings should be held. Speak ers on the subject should be arranged for in every community from time to time. Such speakers should be pro vided for the programs on Labor Day and all other occasions when Labor is holding mass meetings, celebrations, etc. These should be men and women who are capable not only of presenting the case in an effective way, but who also are able to answer intelligently any questions put to them by either the un informed or the enemies of the Co-opera tive Movement. To accomplish all these ends and to make this plan concrete, we offer in con clusion the following specific recom mendations : 1. Every large trade union and central body should have a Committee on the High Cost of Living and Co-operation. This committee should be composed of five or seven members. They should read the necessary literature to make them familiar with the history, prin ciples, and methods of the Co-operative Movement. Before the members of such a union start with the organization of a co-opera tive store or other enterprise, this com mittee would serve the useful purpose of protecting them from making false steps and from being taken in by spuri ous enterprises. 2. Every State Federation of Labor should have such a committee and should have a State Co-operative Ad visor where possible. Under no circum stances should the State Advisor be appointed until he has made himself thoroughly informed on not only the theory but the practical points of Co operation. If possible, he should be a man who has had co-operative experi ence. His function should be to go among the existing co-operative societies, study their methods, watch their prog ress, and give them the advice neces sary to guarantee success. This method is not experimental but has been tried in several districts in the United States, When we realize that in Western Pennsylvania the work ers could have been saved $200,000 in two years by such an Advisor, an equal amount in the Chicago District, and a similar amount in the Puget Sound dis trict, we realize that such an Advisor would be a highly profitable investment. In the face of the fact that the working people in the United States in the last three years have lost $15,000,000 in spurious and fraudulent enterprises masquerading as co-operative, we realize the possibilities and the need of co-oper ative advisors for trade unions. Such a trade union State Advisor should functionate until a State or Dis trict Co-operative League is formed to take over this service. 3. Every State Federation of Labor should be an affiliated fraternal member of The Co-operative League, and should contribute to its support, in the interest of co-operative education, guidance and protection. 4. Every State Federation of Labor should join with the existing co-operative societies in the state in the formation of a District Co-operative League for the federation of these societies. As the District League becomes effective, and as more and more co-operative societies are organized to add to its strength the District League should perform and take over the co-operative functions which have been performed by the trade unions prior to the existence of the Dis trict League. 5. If possible, arrangements should be made whereby The Co-operative League would have a representative on the Com mittee on Co-operation of the A. F. of L.. as well as the committees representing each State Federation of Labor and the Central Bodies. The selection of such representatives should be left to The League so that the co-operative societies would not only feel that they were be ing represented by some one whom they selected themselves for that purpose, but that they could make that representative responsible to The League. EEPOET OF COMMITTEE ON LEGISLATION PEESENTED BY H. RAPPAPORT Shortly after its appointment by the Second Co-operative Congress in 1920, the Committee on Legislation made a study of existing co-operative legislation, with especial reference to the problems of consumers' co-operative societies. It found that eighteen states had no laws at all, authorizing the formation of co operative enterprises; that the co-opera tive laws of no state agreed with those of any other state; that most of these laws were grossly inadequate, while in only four or five states were the laws fairly satisfactory. Even the best co operative laws were found deficient in many important respects. Barely half of the states provide for the fundamental co-operative principle of "One vote, one member"; few prohibit voting by proxy; only eleven laws impose restric tions on the use of the word "co-opera tive". In short, it was found that the present state of co-operative legislation hampered the development of the move ment, by making it difficult for co-opera tives to incorporate. The Committee felt that there was a great need for a uniform co-operative law, which should be adopted by every state in the Union. A study of the ex isting laws and of the legislative needs of co-operatives resulted in the formula tion of the following basic provisions which should be contained in a model and uniform co-operative corporation law: 1. The nature of a co-operative should be defined according to the Rochdale principles. 2. Co-operatives should be required to incorporate, for the protection of the members. 3. The law should provide for demo cratic control by the membership through the following provisions: One vote for every member. No proxy vot ing. Initiative, referendum and recall. 4. Definite provisions for the manner in which savings are to be employed. 5. Protective measures aimed against spurious societies; such as limiting pro motion expenses, prohibiting the misuse of the word "co-operative", and provid ing penalties for such misuse. 6. Exemption from the burdens of taxation, which should only be imposed upon enterprises organized for profit. With these points in mind as the basic principles to be embodied in a uniform state co-operative law, the Committee set itself to the task of drafting such a law. After frequent conferences among the members in the vicinity of New York, and much correspondence, the Committee drafted an act which fol lowed as closely as possible the text of the best existing laws. Every word in the draft was carefully scrutinized by the members of the committee. The act was re-written many times, until it was deemed sufficiently satisfactory to be published. The proposed Uniform Co-operative Act follows the principles outlined above in that it defines co-operation, provides for referendum, initiative and recall, gives each member only one vote and limits promotion expense. It also provides that co-operatives be charged only a nominal fee for incorporation and exempts them from franchise or other taxes. Proxy voting is prohibited. Where societies are spread over so wide a ter ritory as to make meetings of all mem bers impossible, the society may provide in its by-laws for the formation of dis tricts and the holding of district meet ings to elect delegates who shall repre sent the districts at meetings of the corporation. The manner of distributing savings is defined. It is provided that a reserve fund shall be created, that patronage dividends shall be paid, or savings may be used for the general welfare of the members, according to the Belgian plan, or employed for educational purposes. The proposed Law has "teeth" in it. Section 15 provides that the word "co operative" shall not be used in a busi ness title except by associations incor porated under the Co-operative Law. This section prohibits false representa tions as to the co-operative character of organizations. The misuse of any deriva tive of the word "co-operative" or any word similar thereto, is also prohibited. 8 CO-OPERATION The section makes it possible to enjoin the sale of stock, notes, bonds or other evidences of indebtedness or securities in violation of the Co-operative Law, and such injunction may be applied for not only by official agencies, but by any citizen of the state. In addition to the possibility of immediately preventing violations of the laws, through injunc- tive proceedings, penalties are provided for violation of this section. The Act was annotated with simple explanations of the basic provisions, and comparisons were made with existing laws. In February, 1922, the Act was published and distributed on a large scale. Copies were sent to every State Attorney-General, to all legislative ref erence bureaus, to the legislative com mittees of the B. L. F. & E., to promi nent labor leaders and attorneys through out the country, to state departments in charge of the administration of the co-operative laws, to co-operators who requested copies, to United States Sena tors and Congressmen, to the editors of liberal publications, to professors in col leges conducting courses on Co-opera tion, and to persons interested in co-op erative legislation. Unfortunately the Act was published too late to be introduced in the 1922 ses sions of state legislatures, but assurances were received that it would be introduced at the next sessions of many legislatures. Many gratifying comments have been received from those who secured copies of the law. A Deputy Attorney-General of Wisconsin gave his opinion that the provisions of the law restricting the use of the word "co-operative" and also prohibiting false representations that a concern is co-operative, would enable state officials to prosecute the spurious concerns which are now able to operate in Wisconsin under the existing law. From the International Labor Office of the League of Nations at Geneva came the following comment by Dr. G. Fau- quet: "I have been very grateful to you for sending me a copy of the Model Co-operative State Law, which repre sents a very great work indeed. When it becomes enacted it will be, in my opin ion, one of the most complete and ade quate co-operative laws, embodying the best experience of the co-operative move ment throughout the world". Some suggestions were made for minor changes in the wording of the law. The edition is now almost exhausted, and a further edition should be printed for distribution among the legislative com mittees of all labor unions. RECOMMENDATIONS The Committee desires to see its labors in drafting and giving wide circulation and publicity to the proposed Uniform Co-operative Act, rewarded by the gen eral adoption of the Act by state legis latures. It therefore requests the Con gress to give formal approval to the law and take any further steps that may facilitate its enactment. Co-operative societies, district leagues, labor bodies, and civic organizations interested in co operative legislation, should pass resolu tions urging the enactment of the law upon state legislatures. Every co-oper ator should bring the Model Law to the attention of his state legislator. The Committee trusts that with the general support of the Movement, it will be able to report back to the next Con gress that a majority of the states have enacted the legislation necessary to the sound development of the Co-operative Movement. PBOGBAM FOE FUTURE WORK The formation of co-operative credit institutions is hampered by the lack of proper banking and credit union laws. There is not a single state in the Union that has a Co-operative Banking Law. Only about one-third of the States have credit union laws, many of which are not workable. As the development of co-operative credit is essential to the ex pansion of the whole Co-operative Move ment, the Committee should turn its at tention during the next few years to the thorough study of co-operative banking legislation, and the possible drafting of a uniform law. It is recommended that a Committee on Legislation be continued as one of the standing committees of the League and that such a committee be available as far as possible for consultation relative to co-operative legislation during the coming period of legislative sessions. CO-OPERATION THE RISE AND FALL OF THE SEATTLE FOOD PRODUCTS ASSOCIATION BY U. G. MOORE The Cooperative Food Products As sociation was launched in Seattle in January, 1918, to assist the meat cutters and butchers against a lockout of a local packinghouse. While the word "cooperative" was included in its name, from a Rochdale standpoint it was co-operative only in a limited sense. Much of the stock was subscribed and paid for by unions as organizations. About $30,000 was sub scribed by farmers in considerable blocks. At the time the Association ceased as a going concern it had a mem bership of about 800 and a capital stock of $70,000 in round figures, In the beginning there does not seem to have been any well-defined co-opera tive plan laid out, and speculative prac tice too often governed. After a time the constitution and by-laws were changed to more nearly conform to the Rochdale basis, the unions began dis tributing their stock among their mem bers, and it seemed that a real Rochdale Co-operative might eventually appear. However, the handicap of a speculative beginning continued with the organiza tion and overwhelmed it in the end. At the time of organization there were about 60,000 union men and women in Seattle, prices were rising and business was booming. The Food Products be gan business by taking over quarters not very well located and not well adapted to their purpose, although the fact that the principal shipyard was but a short distance away overshadowed the other features as long as the yards continued to operate. In the beginning the Association lim ited its activities to the handling of meats, both wholesale and retail, and the business grew by leaps and bounds un til at one time it reached a total of $85,000 in one month, and the net worth of the Association grew very fast. Of course, this meant a lot of money to spend, so plans were immediately formulated to spend it. The first outlet was found in a scheme to erect a milk condensory. Gross errors in construc tion' miscalculations in the amount of available milk, lack of a market in the co-operative movement, and a desire to place the Association on a Rockdale basis so that it might be consolidated with the Seattle Consumers' Association, led to the sale of the condensory to the King County Dairymen's Association, which later failed, leaving the Food Products carrying the bag to the tune of some $30,000. A slaughterhouse was started. Owing to errors in operation and an incomplete checking system which failed to prevent leakages, it had to be closed down and finally sold at a loss of some $2,000. In the meantime, expensive ideas in the line of a milk distributing plant led to the purchase of a lot in the south end of the city which netted a good big loss in the end. A good cow will produce enough milk to fill up several people. The Coopera tive Food Products Association was for a time a pretty good cow, and many and varied were the plans for getting filled up. It was desired to increase the mem bership—very well, no trouble to find Jack Horner, Plum Expert. Jack, with the help of other Plum Experts, began to "sell stock", as might have been ex pected, and the Association fell heir to quite a few "stockholders", at a cost of 25 per cent of the stock subscriptions. Many people were on the way to co operation, but they were induced to sub scribe by unauthorized promises as to dividends, branch stores, etc. Some were induced to buy stock as an invest ment. Very few of the new members were sold "co-operation". Many who might have become staunch supporters of co-operation were set against it, and those who had developed into good co- operators were disheartened. The close of the war brought a pro gressive slackening of shipyard work and the final closing of the yards. "With a small membership, only a small por tion of which was using its purchasing 10 CO-OPERATION power with the Association, the business was almost wholly non-membership trade, so that the closing of the ship yards was a severe blow, and its effects were immediately felt. The location be gan to lose its value to us, but we were then tied to it by a lease which had about a year to run, and prevented our opening a branch store in West Seattle, where the most active of our members lived. This brought dissatisfaction, al though it is only just to say that some of our staunchest workers were in that part of the city. A portion of the Board of Trustees was possessed by an idea that a big market was the only basis upon which to operate the Pood Products. It is no secret that they did not understand Rochdale co-operation. If they had, the cloth would have been cut to fit the membership, but instead there was a constant effort to develop the Associa tion along a speculative line. The failure of the Seattle Consumers' Association, the National Co-operative Wholesale, and the dubious record left by Ames of San Francisco, hurt the Food Products Association; in fact, the co operative movement throughout the Northwest. But that is another story in co-operative education. Mention is made of it here only because it was an element in the failure of the Food Products. Many conferences were held in an at tempt to bring the two organizations into one, but these efforts were con stantly thwarted because reliable finan cial statements could not be obtained from the Seattle Consumers. When finally we secured one, and found how seriously the Consumers' assets had been impaired, an exceedingly liberal offer looking to consolidation was made, but partisan bitterness on the part of some members of the Consumers, the approaching unemployment crisis, and inertia on the part of the Food Products membership, all combined to abort the effort. However clearly the effect of all these things are seen, it is a certainty that not all of them combined were sufficient to cause the downfall of the Food Products, for the operating losses, outside of the -condensory and slaughterhouse failures, had been no greater, perhaps not as heavy, as among competitive concerns throughout the city. With the decline of the shipyards the value of the South End Market location began to dwindle. A new location was necessary. Then certain members of the Board began to talk about another "big" market, in the face of a fast diminishing non-membership trade and a small membership support. As a member of the Board I fought this from the start. It was not co-operation. It diverted our energies toward competi tion and speculation, and away from building a co-operative organization. It was a constant temptation to job hunt ers. I insisted we should secure a loca tion to fit our buying membership, for get the scramble for transient trade, and set to work to build up a membership of co-operators. The Board for a time supported this view, but after sickness compelled me to give up Board work, the old idea was trotted out and forced through. A new location, requiring an estimated expen diture of some $10,000 to $12,000 to properly improve and equip it, was se cured, and an orgy of spending devel oped in which all the reserves were sunk in building and equipment, and some $4,000 besides. The Association found itself in a new location alongside three of the worst price cutters in town, its membership trade wholly insufficient, and most of the old transient trade lost. It was then but a matter of time. At this point the effects of the minor occurrences heretofore enumerated were felt. There was no comeback in the membership, and although the Associ ated Grange Warehouse generously loaned its credit and its managing abil ity, and joined with a few of the staunch est supporters of co-operation in putting forth strenuous efforts to save the insti tution, it went to the wall, and still an other wing was added to the co-opera tive school of experience. From this failure we ought to have learned some lessons. 1. When we buy from a competitive store we have no further interest after •getting our goods. If we carry that at titude over into the co-operative, failure CO-OPERATION 11 is assured. We should know what is going on. In the Food Products certain influences were constantly working away from co-operation. The desire of the membership for co-operation was not strong enough to lead the members to find out what co-operation really meant, so the struggle against this adverse in fluence had to be carried by a few. I have said before, and I still hold it to be true, that aside from violence no outside power can wreck a co-operative. It all comes from the inside. And it is equally true that if even 20 per cent of the membership is well grounded in co operative principles no set of men can wreck it from the inside. We get lazy, inert, indifferent, and easily diverted— then the wooden horse is hauled in. The membership of every society, or a volunteer group, should have general in struction from time to time in account ing, so they will be able to bring intel ligent criticism to bear upon a financial statement. Usually, unimportant and trivial items are criticized and important ones missed. Sound business principles should be set forth clearly outside of general business meetings, which are apt to be controversial. When the members understand what the principles are they will soon learn to apply those princi ples and not be diverted by trifles or personal animosities. To my mind this is the overwhelming lesson, and it no doubt applies else where as well as in Seattle. Too many do not understand the most elemental principles of co-operative management, and so fall for smart talkers and big sounding propositions. 2. When the membership is not inter ested enough to persistently seek this knowledge, there is no hope for a co operative society. 3. An intriguing mind is a source of danger, especially if coupled with a de sire for a job. Again, the remedy is a thorough knowledge of co-operative principles and practice. If this knowl edge exists, individual acts of intrigue can be safely discussed in open meetings without developing personalities. 4. Speculative experiments or ven tures are out of place in a co-operative. Co-operation is to be built on certainties as much as humanly possible. 5. Do not despise the day of small things. That is one American weakness. We need to have the Rochdale begin nings repeated over and over, again and again. 6. A Board of Trustees is of little use unless it organizes into committees and does its work through those committees, and in addition finds some method by which to draw the entire membership into the Society's work. "Satan finds mischief for idle hands" is certainly true in a co-operative, and it is a hard fact that if the Board does not enlist the members in constructive work for co-operation they will soon be busily en gaged in tearing the Board and the or ganization to pieces. 7. A thorough accounting system, in cluding thorough checks to prevent leak ages and as a means of establishing a correct mark-up, is vital. The real truth is that few of us have ever been taught how really to live to gether, with our wives or husbands or children. And after all, this is what the co-operative is—just a larger family in which all are brothers and sisters. If we have learned kindness and consider ation in the home, we will practice it in the co-operative. Small beginnings. Small beginnings. A brick at a time. Placed at exactly the proper spot and in just the proper quantity to build a solid, upstanding perpendicular wall. The Tower of Pisa is a great curiosity, but we do not need a world full of them. One is quite enough. Build carefully, build soundly. The foundation first. And what is the foundation? The co-operative desire; then the co-operative understanding, achieved by study and experience. That is the mental side. On the economic side, organize your customers .(y°ur members); know what and how much of it they use per week or month. Buy accordingly, and handle it in as small a space and at as little expense as pos sible. Thus may we move on to a realization of the actual kingdom of heaven taught by the great co-operator on the shores of Galilee two thousand years ago. 12 CO-OPERATION NEWS AND COMMENT FARMERS' CO-OPERATION IN IOWA Of the 512 farmers' buying and sell ing co-operatives in Iowa 435 alone did nearly $58,000,000 worth of business in 1921, according to the Federal Bureau of Agricultural Economics. This figure includes both marketing and purchasing activities. Nearly every farmers' co operative purchased supplies for its members, in addition to marketing their wheat, dairy products, live stock, etc. Besides the household necessities sup plied by the co-operatives, farm requi sites were purchased for members, such as barrels, sacks, and other containers, feeds, fencing, fertilizers, fuel, hard ware, implements, seeds, and spraying materials. The Farmers' Union Exchange of Iowa, with which a great many of the co-operative societies of that state are affiliated, recently became a constituent member of The Co-operative League, thus linking up the farmers' co-opera tives of Iowa with the national educa tional headquarters of Co-operation, NEW CO-OPERATIVE BAKERY OPENED A mass meeting and concert marked the opening of the new bakery of the Brownsville and East New York Co operative Society of New York City, on December 16th and 17th. The new bak ery plant, erected by means of the bond issue subscribed to by the progressive consumers of New York, seated almost a thousand co-operators, who listened to speeches by Dr. J. P. Warbasse, who spoke on behalf of The League; Abra ham Shiplacoff, the President of the Association; B. C. Vladeck of the '' Jew ish Daily Forward"; M. Pine and J. Goldston, labor leaders, and Charles W. Ervin of the "New York Call". Up to this time, the co-operative bak ery had been using a dilapidated old cellar which they had rented. "While this was no worse than other bakeries in the neighborhood, it was not a consider able improvement upon them. The de sire to produce the highest quality of product led the association to erect a new bakery and to equip it with the fin est and most efficient machinery. The bakery is now a model from the sanitary standpoint, and it is said that there is only one other bakery in New York to equal it. The five monster ovens will be able to turn out $10,000 worth of goods every week. The plans of the bakery call for the erection of two stories, al though only one has been constructed. As soon as the demand warrants it, an other story will be built. The building and new equipment cost $60,000. The Co-operative Bakery has been a thorn in the side of the private bakers in the neighborhood, who are forced to keep their prices within bounds, due to the competition of the bakery owned by 1,300 consumers. "With a new plant and up to date equipment, it promises to make things interesting for the private bakers. AN EDUCATIONAL CONTEST The Adamstoii Co-operative Mercan tile Company of Adamstoii, West Vir ginia, is cleverly using the competitive instinct of its members as a means of educating them on the Co-operative Movement. Their idea is so good that we pass it on with our suggestion that other societies do likewise. The Adamston Society is conducting a contest, open to all people of their town, for the best article on the history, practical results, and ultimate aim of Rochdale Consumers' Co-operation. To the winner of the contest will be given free one share of stock, of the value of $50.00. Articles will be judged by the staff of CO-OPEEATION. The judgment of those who decide the contest will not be based upon the grammatical or rhe torical style, but rather upon the evi dences of the writers' study of the subject. The prize will be awarded at the semi-annual meeting of the society in January. "With the announcement of the contest is contained a list of litera ture published by The League. CO-OPERATION 13 "We know of no more stimulating method of creating interest in co-opera tive literature. The contest makes mem bers concentrate on the study of Co operation, and it popularizes co-opera tive literature. THE BRITISH ELECTIONS AND COOPERATION The spectacular results of the recent British elections of Members of Parlia ment were extremely gratifying from the co-operative point of view. The Co operative Party had eleven candidates in the field, polling 126,000 votes, and electing four candidates to Parliament. This is equivalent to a gain of 400 per cent in the strength of the Co-operative Party, for in 1918 when the party was launched, it elected only one candidate to Parliament, out of ten candidates, who polled 47,476 votes. A. E. Water- son, the former lone Co-operative M. P. was defeated only through the coalition in his district of the Tory and Liberal parties. He was defeated by the narrow margin of 129 votes, although he in creased his vote over that in the former election, by 4,000. The four successful candidates are very active in the Co operative Movement; two are members of the Central Board of the Co-opera tive Union, one is the president of the Snnderland Society, and another joint editor of the "Scottish Co-operator." The Co-operative Party has organized its own caucus and selected its own "whip", or parliamentary leader. In addition to the candidates elected by this party, the Labour Party is decidedly sympathetic to co-operative legislative interests. At least a score of the suc cessful labor candidates are co-operative directors or are otherwise active in ,the Movement. The Labor M. P.s include Sidney Webb. It should be stated that although co- operators have gone into politics, they have not by any means relinquished their aim to build the new world by means of voluntary non-political mutual aid. Only Governmental discrimination forced the co-operatives into politics for the specific purpose of protecting co operative interests. The "Co-operative News" of England, commenting on the results of the election, reminded co- operators that: '' It must be remembered . . . that if the Co-operative Party dominated the whole House it would not bring pros perity to the co-operative stores or the fruits of co-operative effort to the hearts of the people. These fruits, like all the other fruits of life that are worth having, have to be worked for. Co-operators must purchase; their ranks must be recruited; the stores must co operate with the central organizations; and the central organizations must, with the help of the local organizations, lay themselves out to establish that' hundred per cent' co-operation which alone will build up the commonwealth of our dreams, even in skeleton form.'' THE FASCISTI AND CO-OPERA TION The Fascist!, the black-shirted Ku Klux Klan of Italy, in their vicious fight against all progressive social movements, have been seriously injuring the Italian Co-operative Movement. Through the rule of the bomb and the stiletto, the Fascisti have not only captured the Gov ernment, but they have confiscated the property of hundreds of co-operatives, and have seriously interfered with the operation of hundreds of other societies. The chief Italian representative on the Central Committee of the Interna tional Co-operative Alliance, A. Verg- nanini, reports that: "The persistent attacks, encroachments, acts of violence, massacre of hundreds of our best men, burning of property, devastation and pillage which have been experienced in nearly all our provinces, and the large number of wounded and refugees, have brought about an indescribably grave and threatening situation. Co-operative Societies which have been violently sup pressed can be counted by the hundred, whilst hundreds more have been para lyzed owing to the fact that their man agers are expressly forbidden to live in the same places in which the societies operate; again, hundreds of societies under the menace of destruction have 14 CO-OPERATION been obliged to pass into the hands of the Fascists." Manufacturers, private retailers, and peasant proprietors contribute heavily to the funds of the Fascisti. Millions of lire are spent by the latter in their work of destruction and terrorism. Com plaints to the Government against Fas cist atrocities receive no attention. The Royal Guards, the police, and the courts of justice are themselves accomplices of the Fascisti in their acts of violence. Co-operative stores have been burned to the ground, others have been compelled to close down, many have been compelled to turn over the premises paid for by thousands of consumers, to the black- shirted assassins, while the police looked on with approval. And now the Government itself has fallen into the hands of the Fascisti, and their chief, Mussolini, blusteringly serves notice upon Parliament, elected by the votes of the people, that he will only permit them to meet so long as they will consent to act as a rubber stamp, formally approving of the measures pro posed by the Fascisti! The Co-operative League, in common with national co-operative bodies all over the world, has addressed to the Government of Italy, its protest against the outrages of the Fascisti against the Co-operative Movement. "AMALGAMATED" BANK PROSPERS The bank established by the Amal gamated Clothing Workers in Chicago in July already has $1,500,000 in re sources. When it opened for business July 1st, it had a capital of $300,000 and a surplus of $100,000. Since that time, it has received more than $1,000,- 000 in deposits, and $100,000 of addi tional resources. The bank has 3,500 depositors. It is reported by Samuel Levin, a Director of the bank, that money was loaned to workers at a low rate of com mission in order to help them acquire homes; that the foreign exchange de partment rendered great service to workers in enabling them to send funds to relatives abroad; that the bank gave honest investment advice to workers. "If we did not have this bank," said Mr. Levin, "the $1,000,000 which we have on deposit would be in the hands of the capitalist bankers. We would then see this financial power, created by labor, used against the workers, as is usually the case." " It is sufficient to say that in the first four months of operation the bank was already on a self-sustaining basis. Its business methods were highly com mended by the examiners of the State Banking Department at the time of their last inspection." STEEL COMPANY NOT CO OPERATIVE A "high-pressure" stock selling cam paign has been going on all over the country in behalf of the L. R. Steel Company, who are seeking to dispose of their preferred and common stock. This concern, through its agents, repre sents that it is a co-operative. Co- operators should therefore take notice that the company has not a single co operative feature. With every two shares of preferred stock, which the company is selling in a block for $100 a share, a share of com mon stock is given as a bonus to the purchaser. According to the Secretary of the Steel Company, Mr. W. M. Wil- kins, "every stockholder has a vote in proportion to the amount of stock held.'' There is no limitation upon the number of shares of common stock a stockholder may own, and therefore no limitation upon the number of votes any one per son may have. Mr. Wilkins also admits that: "Dividends are paid on the stock and have no relation to the amount of patronage of each stockholder." The stores at present operated by the com pany, and those to be operated, are scattered over the country. According to the statement of Mr. Wilkins, "all stores are under the control of the ex ecutive offices in this city (Buffalo, N. Y.)." In a suit recently brought by a former agent of the Steel Company against her employers, it was alleged that the pre ferred stock for which she had paid CO-OPERATION 15 $100 a share could be bought on the open market for $27, while the common stock could be bought for $14. Co- operators should keep these facts in mind in dealing with the L. R. Steel Company and its subsidiaries. BROADCASTING CO-OPERA TION BY RADIOPHONE Co-operative education and propa ganda are now literally in the air. The message of Co-operation has hitherto been preached by word of mouth, by means of the printed word, and through the object lessons contained in the pure milk, wholesome groceries, substantial homes and other services supplied by co operatives. Now the radiophone, the latest means for bridging the distance between man and man, is being used to teach men the value of co-operative activities. In Marquette University, at Milwau kee, Wisconsin, a radiophone set was installed for broadcasting lectures. Father Joseph Reiner, of the university, reports that the very first lecture to be broadcasted was one on the Co-opera tive Movement. Thousands of radio "fans," listening intently with receiv ers to their ears for the latest news of human activities, heard the clear mes sage of Co-operation, the greatest ac tivity of all. Father Reiner, who is attempting to organize intercollegiate study groups in all colleges and univer sities, is giving a course of lectures on Co-operation at Marquette University, which will be sent to the four winds. Word was received that the first lecture was heard in Sault Ste. Marie, Michigan, about four hundred miles away. THE MILFORD N. H. SOCIETY The Co-operative Society of Milford, New Hampshire, conducting a little grocery store, is doing a business at the rate of about $38,000 a year, expects to give a 7 per cent savings-return to mem bers, and 3^2 per cent to non-members. This society has a membership consist ing largely of farmers. FROM THE LEAGUE HEADQUARTERS A COURSE ON CO-OPERATIVE ORGANIZATION AND ADMIN ISTRATION A practical course for Co-operators to be conducted by experts working in the movement, will be given at The Co-oper ative League House, 167 West 12th St., New York City, Monday evenings at 8 o 'clock. JAN. 15—Organization Problems. What kind of business are we going into? What kind of members and how many? How much capital do we need? Who shall the officers be? What kind of a man do we want for manager; what should he know, and where can we find him? Before beginning business: what should the members be studying? the directors? the manager? JAN. 22—Starting the Business. Loca tion of store in relation to competitors and to majority of members. Renovat ing the building. What fixtures are needed? Stocking up with goods (what do we want and where do we get them?). Hiring the clerical help. Should we advertise the business at first? What shall we do to attract the general public ? JAN. 29—The Manager's Job. How it differs from that of the private store keeper. His relation to directors, to members, to patrons, to employees, to jobbers, and salesmen. Window dress ing. Making the store attractive. Can he meet the competition of the chain store? What of the self-service idea? Should he join the Grocers' Association? Getting a rapid turnover of stock. Capi talizing the patrons' criticisms, and making these people 100% purchasers. The manager and educational work? FEB. 5—Delivery Service or its Sub stitutes. What stores have operated it successfully ? Can it be done in a large city? In the country? Problem of routing, soliciting, collections. What 16 CO-OPEEATION kind of a person makes a good delivery man? How can we cover the cost of delivery? Substitutes for delivery: the part time boy; the private delivery service; service by Associated Business Men; the store-at-your-door. FEB. 12—Watching the Overhead and Other Figures. What proportion of gross income should go to salaries? To rent? to fixed charges? to depreciation? to delivery costs? Should we do busi ness on credit ? What does this actually cost the business? The cash register; saleslips; accounts with jobbers. How to record members' purchases for the annual rebate. FEB. 19—The Bookkeeping of the So ciety, and the Control System. Single or double entry? Problem of doing the bookkeeping in odd hours. Co-operat ing with the manager. The control system. How it works. The manager's job. Can he use it in all departments (meat and green goods) ? Are there short cuts or omis sions he can use? The Control Commit tee's job. FEB. 26—The Board of Directors and the Committees. Eesponsibilities and Functions of the Board. Duties of the officers. Directors' meetings. Commit tees from the Board; committees from the membership. Work of the commit tee on Education, Audit, Control, Store, Women's Guild, etc. MAE. 5—Other Co-operative Activities and their Special Problems. The bak ery, restaurant, butcher shop, laundry, housing, banking. MAE. 12—Why Some Fatt; Why Others Succeed. Relative Importance of educational work, store efficiency, administrative control, etc. Concrete examples examined. Questions and discussion. .This course is open to all. Those who wish to join the class should communi cate at once with the office of The Co operative League. A registration fee of $2 will be paid by each student. The class will be con ducted only on condition that a mini mum of 20 people register for the course. CHAIN STORE ATROCITIES Co-operative Managers and directors complain continually about the compe tition of the chaiii stores. It is easy to complain; but complaint solves no problems. Co-operators have excellent educational and propaganda material in the story of chain store methods. 1. Trickery and petty thievery is al most universal in the chain store busi ness. The big chain companies them selves, in their frantic attempt to un dercut competitors and attract trade, resort to numberless rascally little de vices to bamboozle the public. 2. The managers in their turn, often honest enough in their intentions, are almost always underpaid and over worked. They dare not turn in a cent less than the full amount of cash for which they are accountable each week to the company, on penalty of losing their jobs. Nor can they trick the cast iron control system of the corporation which employs them. The only method at their disposal for making up deficits and leakage or for supplementing their pay envelopes is at the expense of the innocent consumer. 3. The clerk himself is underpaid. He is given careful instruction by the man ager in the devices for making up short age or waste or for padding his wages at the expense of the buyer. Thus we have a powerful corporation, a deft and efficient manager, a clever young clerk—each animated by the profit motive, taking their toll from the unsuspecting customer! And the pub lic is almost completely ignorant of this intricate system of deception and chi canery; for no matter how these com panies may compete as to prices, none of them dares expose the small trickery of their rivals. They are all blood brothers here. Many chain store managers come to the office of The Co-operative League. They are disgusted, often thoroughly alarmed at the corruption they are learning to practice upon women and children under the pressure that is ex erted upon them. They want to get into clean business, into co-operative stores. We have never yet met a man ager or ex-manager of a chain store who CO-OPEEATION 17 could tell us he had given his customers honest service. And yet when we tell some of this to the guileless public, they say we are sensation mongers, defamers, jealously blackmailing the efficient chain store system with which we cannot com pete! Here is the great opportunity of the co-operative store managers and direc tors. Every co-operator should be familiar with the sleight-of-hand prac ticed in chain stores. But no co-operator should be tricked into using these meth ods in the co-operative store. There is a bigger card than that to play. Expose these tricks mercilessly and continually, and compare them with co operative methods. There is no better way of contrasting the profit system with the co-operative system. In future issues of CO-OPERATION we are going to run in the column headed "Chain Store Atrocities" stories of the petty grafting which takes place every hour in the chain stores of the country. With them we shall give hints as to methods of combating these tricks. We want co-operators, especially men who have worked in chain stores, to send in to us their own experiences with adul teration, short weight, cash manipula tion, etc., as these are practiced. Of course, we will publish no names in re peating these tales. A CORRECTION Due to typographical errors in the December issue of CO-OPEEATION, the fol lowing sentences were omitted from the bottom of the first column on page 206, in the article "A Symbol and A Word". "But the symbol itself might not be suitable for use on all occasions. Something more easily copied is required for certain occasions and certain co-operative groups. Therefore it was decided that a word be invented to fill this need. The result is as follows: CLUSA" By a similar mistake, the two cuts which follow in the second paragraph were reversed. The word itself, enclosed within a border, should occupy the place now filled by the word and symbol com bined, and vice versa. THE CORRESPONDENCE FILE ONE OF TEE NEW DIRECTORS I enjoyed every minute of the Congress and came away with many new ideas and desires for furtheiance of the great cause of humanity. It was a pleasure indeed to meet the folks so often written to, and know them in a more personal way. I am sure the impression I got of all was very high indeed. It seemed to me the great need was a little more co-operation and less merchandising as many of the societies seemed to put foremost. I am determined if I ever have anything to do with organizing another society it will not hear a word from me, at least, of the benefits of merchandising, but the much greater and further reaching need of really getting to gether, seeing things alike, working for one another, confidence in each other, really the love of doing things for love's sake and not for profit. I shall be glad if you will call on me to do anything within my power for the League and am willing and want to be a real live member of the Board. E. H. SALTEE, Pullman, Wash. HOW CO-OPERATORS BEAT THE MILK TRUST You have probably seen from the newspapers that we had a milk war, but it was of short dura tion. It happened like this: On December 1st, the farmers raised the price to us one cent per quart. We, in turn, increased our price to the consumers one cent; so did all the milk companies in St. Paul and some of the inde pendent companies in Minneapolis. But the Northland Company, recently organized and composed of four of the largest distributing companies here, did not raise their price. On the day we distributed our notices notifying our customers of the raise, the Northland Com pany published a statement in the newspapers stating that through their consolidation they were able to cut down their overhead enough to sell their milk at the old price. This was nothing more nor less than a declaration of a price war to hit the Franklin Creamery. We called a meeting of our employees im mediately explaining the proposition to them, and they decided to work for nothing until this war was settled. We then decided to cut the price one cent below the Northland Com pany, with the result that the whole city woke 18 CO-OPERATION up to the situation. Within three days the Northland Company started to pull all the wires at their disposal in order to get a settlement. During those three days new business came in faster than we were able to take care of it. In short, it was the best thing that could happen, as far as we were concerned, at the time we opened up our new plant. But that is the way these gentlemen have always acted when things did not look the best. We were wondering where we were going to get all the business to keep the new plant busy; but as usual our competitors came to our rescue. The war is now over and I think they will think twice before they start another. Public opinion has certainly turned against them. . As you know, our Co-operative Law in the state of Minnesota is one of the best in the country, and we expect in the next session of the state legislature to improve on it. We may be able to get through the Model Co operative Law drawn up by the Co-operative League. The progressive element will prac tically have control of the two houses in the next session. With best wishes for the Co-operative League, we are Franklin Co-operative Creamery Ass'n, EDW. SOLEM, Manager, Minneapolis, Minn. A WARRIOR AT BATTLE CREEK Am fighting like anything to put the Battle Creek Co-operative on its feet, and will do it or die in the battle. We expect to move into larger quarters soon. Think we will order a bundle of Home Co- operators in the near future. The fight is fierce, but when I think of the fine men and women clasping hands around the world, de termined to win, I pause to rest for a moment; then on and on I go. Greetings of comradeship, W. J. KOGERS, Manager, Battle Creek Co-operative Society, Battle Creek, Mich. FROM A CREDIT UNION I read "Co-operation" from its first word to its last. I find myself again and again wishing that I could express to you my ap preciation of the information and reasoning that give high value to its pages. What about the eligibility of a credit union for membership in the Co-operatiTe League? I read with deep interest of your symbol. Just what steps should the Traders Credit Union take to Secure from you the privilege of using it? It impresses me favorably in many ways. I am strongly inclined to think that we should like to join the co-operative organiza tions of the country in the use of it. CHARLES W. BIKTWELL, Treasurer, Traders Credit Union, Boston. EDUCATION UNDERSTOOD AT BROOTEN Co-operation is on trial in Brooten. We started in business three years ago September 1st. We have had our ups and downs, but we have managed to keep our heads up. We did pay a big dividend after we had conducted business fifteen months. We paid so much, that it crippled us. We will not do that again for a while. Our people must ,be satisfied if they get interest on the investment. We realize that an educational campaign should be conducted before a co-operative enterprise is started. We are trying to educate them now. Brooten, Minn. Farmers' Co-operative Mercantile Co. HOLLAND SENDS APPRECIATION I enjoy reading '' Co-operation." I think it is one of the best papers for education and propa ganda our Movement has, and I quote it often. Wishing you the best success for your work, I am, MARGARET NEYBOOM. Women's Co-operative Guild of Holland. DIFFICULTIES OF EDUCATION We are carrying on educational work as best we can, but with some difficulties. Our last lecture came near being a failure. It rained hard all the afternoon and evening. The lecturer, at the last moment, sent word that he could not come. When it was time to open the meeting the chairman did not appear. (He had broken the axle of his fiiver, walked four miles to a farm house, and arrived at the meet ing just as we were coming out.) While the secretary was reading the speech which the lecturer had sent him, the lights went out. However, the secretary had a bad cold and nobody could hear much that he said. Fortunately the attendance was very poor. This was especially fortunate for I had a chance afterwards to read the speech the lecturer had sent, and if I know anything about co-opera tion, it must have been the spirits of the Rochdale pioneers that put out those lights. We have always been a lucky society. Ever since the former manager absconded with the old cash register the tide has turned in our favor. JASPER JAMES. NEW SUBSCRIPTION CONTEST The Co-operative League is again offering a prize for the largest number of subscriptions to "Co-operation" sent in by any one person between the first of November and the first of February, 1923. Any one can compete for the prize, which is a copy of any book on Co-operation which the winner may choose from the list of publications of The League or its bibliography. CO-OPERATION PUBLICATIONS of THE CO-OPERATIVE LEAGUE HISTOBICAL Per Copy Per ICO 3. Story of Co-operation .........................................................$ .10 $6.00 7. British Co-operative Movement ............................................... .10 6.00 38. Co-operative Consumers' Movement in the United States....................... .05 4.00 88. Consumers' Co-operative Societies in N. Y. State, (Published by Consumers' League). . . . ............................................................. .10 TECHNICAL 4. How to Start and Kun a Eochdale Co-operative Society....................... .10 4.00 6. System of Store Eecords and Accounts......................................... .50 6. A Model Constitution and By-Laws for a Co-operative Society................ .05 2.EO 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 Bun a Women's Guild....................................... .05 15. How to Organize a District Co-operative League.............................. .10 MISCELLANEOUS 16. Model Co-op State Law........................................................ .10 17. Syllabus for Course of Lectures, with Eeferences and Bibliography.......... .25 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 42. Co-op Homes for Europe's Homeless.......................................... .10 43. Co-operative Housing. . . . .................................................... .10 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: (18) Do You Know Why You Should Be a Co-operator; (20) Why Loyalty Is Necessary; (21) Cost and Crime of Credit; (22) A Beal Co-operator; (25) BesolutionB 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 Educa tion and Recreation?; (44) What Is the Co-operative Movement?; (45) Schools and Stores; (47) A Man's Eight 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...... ..$100 HOME CO-OPEBATOR. 4 pages.................................................... SI per 100 INTERNATIONAL CO-OPEEATIVE 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 Gide, C.: Consumers' Co-operative Societies, American edition and notes, 1922 '"'" Cloth, 53.00; paper bound....................................................... go Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, $266• paper bound. . . . . .............................................................................. .go Howe, Fred C.: Denmark, a Co-operative Commonwealth, 1921.................'.'.'.'......,'..'..'. 2 00 Maxwell, Wm.: History of Co-operation in Scotland, 1910.......................'.'.'.'.'.'.""" % oo Nicholson, Isa: Our Story............................................... |...|.!!!!!!'"' 25 Powell, G. Harold: Co-operation in Agriculture. Macmillan ' •••••••••••••••••• • Bedfern, Percy : The Story of the C. W. S........................... 1'.'..'.'.'.'.'.'.'.'.'.'.'.', ""•••' ^'QQ Smith-Gordon & Staples: Bural Eeconstruction in Ireland, 3918.......'.'....'.'.'.'.'.'.'.'.""""" i 50 Bedfern, Percy: The Consumers' Place in Society, 1920............. ••••••••.......... . Smith-Gordon: Co-operation in Many Lands, 1920...................!!!!!.'!!!"""""""" 150 Sonnichsen, Albert. Consumers' Co-operation, 1919. Cloth bound, $175- paper bound'""" 'T>S Stolinsky, A.: The Co-operative Movement. In Yiddish...................... ....... .«.» Webb, B. and S.: The Consumers' Co-operative Movement, 1921. ................. .uu Webb, Catherine: Industrial Co-operation, 1917......................' . '•••••••••••••••••«•"" Woolf, Leonard: Co-operation and the Future of Industry.... """"••"••••'•••••••••••••• ^-°" Woolf, L.: Socialism and Co-operation....................... " •••••••••••••••••••• ^-gV " The Op-operative Consumer" and "Co-operation," III (1917),' Vi' '(1920)',' Vii "(1921)'' 'viil (W22). . . . . ........................................................... . p ' .. OK Transactions of Second American Co-operative Congress, 1920................. "•••••••••••••• J-fjJ Transactions of Third American Co-operative Congress, 1922 ••••••••••••••••••••••••..... i.uo The People's Year Book, 1922............................ •••••••••••••••••............ .. (Ten cents postage should be added for books which cost more'tha'n"s2.'ob''and'flVe'c'enta for the smaller books.) noun ivr THE CO-OPERATIVE LEAGUE (Member of The International Co-operative Alliance) 167 West 12th Street, New York An educational organization for teaching the history, principles, methods and alms Of the Co-operative"Movement and for the promotion of Co-operation in the United States. Join The League and thus help promote the educational work of the Co-operative Movement. Individual Membership, $1.00 a year. Subscribe for CO-OPERATION, the Monthly Magazine of The League, and keep in touch with the Movement. _ , , /. j A t Subscription for CO-OPERATION, $1.00. Enclosed tind $......... tor Membership in The LEAGUE, $1.00. Name... Address. Date.... Co-operative Central Exchange Wholesale Grocers and Jobbers, Bakers We supply soods to Co-operative Societies ONLY. We are owned and controlled by Co operative Societies. We are organized to enable Co-operative Societies to do collectively what they cannot do Individually. Co-operative Central Exchange Offices. Warehouses and Plant: Winter Street and Ogden Ave., SUPERIOR, WIS. Co-operators' ltd. Mutual Fire Insurance Co. Is uow 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 ol Tne Co-operative Union ol Canada. Published monthly 75c per annum MOVING PICTURES and Stereopticon Lectures may bo rented from THE CO-OPERATIVE LEAGUE 167 West 12th St., New York City 1. "Some Examples ol English Co-operation." Moving pictures of factory processes (two reels). . . . .....................••••••*5-0° t. "Co-operation In the United States." With 53 stereopticon views...........53.00 S "The Co-operative Movement In Bnssia." With 36 colored stereopticon views. .$3.00 Co-operation in Scotland In no part of the world is Co-operation fur ther 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, administrative 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. Gd. a year. The Trade and Technical Organ of British Co-operation. THE HOME CO-OPERATOR A four-page magazine for u»e in co-operative societies. Issued monthly, in bundles, $1 per hundred. Published by The Co-operative League Publishing Office, Willimantic, Conn. Albert Sonnichsen, Managing Editor. e I 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 12th Street, New York City. J. P. Warbasse, Editor. Entered as second class matter, Decem ber 19, 1917, at the Post Office at New- York, N. Y., under the Act of March 3, 1879. Price $1.00 a year. Vol. IX, No. 2 FEBRUARY, 1923 10 Cents VITAL THESE NATIONALIZATION PROGRAMS Nationalization is the popular watch word for tens of thousands of American liberals and progressives to-day. The Plumb Plan has been before us for three or four years. Just now it is the "Miners' Plan" for Public Ownership and Control of the Coal Industry. Compared to present conditions in these industries, such programs as this are good; certainly they cannot produce anything worse than we have now in the administration and control of railroads and coal. But they are patchwork schemes; and we experience a constitu tional horror at mere reforms when something permanent might be done. Take, for instance, this new coal plan. First, the Government would buy out the mine owners and we should have government ownership. Second, a Fed eral Commission of Mines, the majority of its members appointed by the Presi dent, will control budget and policy on the basis of fact finding. Third, a Na tional Mining Council, with miners, technicians and consumers represented, will administer policies. Obviously, this plan puts ultimate control into the hands of the Govern ment, for financial ownership, the strongest factor in control, as well as the Federal Commission of Mines, be longs to the Government. And neither ISSUES the miner nor the consumer is going to gain greatly tinder the benevolent dis positions of Mr. Harding or his succes sors. The miner may get a steadier job under federal control, but if his organ ization is reduced to the impotence of the Postal Employees' Association and his pay correspondingly whittled away, we do not envy the miner his position as a government employee. The con sumer will get just as little in the way of service as the statesmen at Washing ton dare give him without alienating his vote on election day. Both these con ditions will exist, not because the Presi dent and his fellow politicians are neces sarily dishonest, but because they are subject to the call of their masters' voice, and the masters live in New York and are interested in the private profit which can, strangely enough, be ex tracted even from government owned industries. But our more immediate objection to such programs as these is that they al most entirely ignore the consumer and the whole principle of Production for Use. True, the coal plan mentions con sumers; but its whole appeal is to the miners and the miners' sympathizers and friends. We are as ready as the next man to fight for the rights of the miners, but we do not think he wants us to shed our sentimental tears all over him. We believe that the average miner 20 ' CO-OPEEATION would respond -wholeheartedly to a straight out proposal for joint ownership and control by organized consumers and organized producers of just as large a part of the coal industry as these organ izations are ready to tackle,—quite in dependent of the Government. We have a suspicion that the miners -will not be overenthusiastic for this govern ment ownership of coal. If any reader pf ours is in doubt, he might put on some extra heavy winter togs, a pair of hip- boots and wade out to some of these tent colonies to inquire just what these men and women really think of the state and national governments' attitude toward miners in general. If our reader suc ceeds in getting through the outlying army of company gunmen and National Guardsmen alive, he may get some valuable information. C. L. FROM ARISTOCRACY TO DEMOCRACY The British eo-operators are steadily acquiring land. Up to the present their holdings in England alone amount to over 40,000 acres of farms. This comes about by distributive societies purchas ing farms and by the acquisition of farm lands by the Co-operative Wholesales. Among these properties are often old estates of the British aristocracy. Calderwood castle, with the adjacent farms, is one of these. The C. W. S. in recent years has acquired several his toric properties. Some of these old manor houses and country seats are used by co-operative societies as vaca tion houses and sanatoriums. From "The Producer" we learn that the Hinckley Society has purchased Hinckley Castle and buildings. Part of the buildings will be used as a dairy with machinery for pasteurizing. The ground floor of the house will be laid out in general offices, manager's office, etc., while the spacious hall and upper rooms will provide accommodations for invoice departments and for committees. This property which has been an aris tocratic estate for 700 years now becomes the property of the great co-operative democracy. MACHINISTS, BEWARE! The present executives of the Inter national Association of Machinists are uniting with The League in exposing the latest fraud on the workers. It is unfortunate that some labor men are still tools of the "fakirs", but it is a fact that today a member of the ma chinists union and an ex-vice-president of the International Association of Ma chinists are going about personally with the agents of Harrison Parker selling "beneficial membership" in the "Co operative Society of America." This is a private business scheme, masquer ading under the name of "co-operative". Within the last few weeks the agents of this organization have called upon hundreds of people who are sympathetic to labor. They would have had difficulty in selling their "stock", but when an international vice-president is introduced by them, and shows his credentials, and recommends it, working people take notice. It is represented as a "great investment". "Provide for your old age by investing in the great Co-opera tive Movement", is the slogan. One woman the other day, in a west ern city, was advised by such men to put in $2,000. She did so. Another hi the east subscribed $700; she had only $200 cash available but she handed that over. We have been told that a work ing woman in Chicago put all her own and her childrens' savings in—$3,000— and when she found what had happened to her money she committed suicide. Some day, sooner or later, the labor movement in the United States is going to really take hold of the Co-operative Movement and make use of it just as does the labor movement in European countries. But today every sort of fraud, fake and fancy can step into the field and command the interest—and capital—of the working people. Fortunately the intelligent leaders of the labor movement are awake to this danger. They realize that education of the rank and file in Co-operation is the fundamental need. They are working toward this end. CO-OPEEATION 21 A "WORKERS' CO-OPERA TIVE" AT MINNEAPOLIS The Minneapolis Co-operative Electric Association started as a workers' cor poration for doing electrical work and selling electric equipment. It started in a strike of the Electrical Workers' Union. Somebody advised the striking workers to organize a "workers' co operative", to be owned and controlled by the workers. They did so. Unlike most such attempts, this one succeeded. It made money. It has be come so successful that now the stock is all owned by six men. The result of this "co-operative" has taken six men out of the ranks of labor and converted them into capitalists. They employ a large number of other men. They make as much money out of the consumers of Minneapolis as they can. No social problem of today is solved nor is there any approach made to the solution of any problem—except for the six men whom the enterprise created. This is precisely the fate that the Minneapolis Creamery might have suf fered, had it not been for the fact that the workers in this case secured sound co-operative advice. The tendency of the so-called pro ducers' "co-operative" is for owner ship and control to fall into fewer hands. The tendency of a consumers' co-opera tive is expansion. The Franklin Cream ery of Minneapolis has 6,000 stockhold ers. The Electric Association has six. Both are successful. But it depends upon what kind of success we are after. _____ J. P. W. PROFITS ON MEAT "Figures don't lie" was once a re spected old maxim. Now the maxim reads: " Figures don't lie, but liars do figure!'' Some of the figures supplied to the public by large corporations in these days of monstrous profits look as if they had been dressed up for appearances. During the past few years, the mails have been full of letters sent to editors by prosperous meat packers, quoting figures to show how low their profits are. In spite of the fact that meat was sell ing at double its pre-war prices, accord ing to the stories given to the press the beef packers were barely able to live from hand to mouth. One prominent packer, whose personal fortune is meas ured by the scores of millions, gave out an interview in which he informed the consumers that he was wearing last year's shoes and patched clothing, be cause he, too, could not personally afford the profiteering prices. The figures, when closely examined, however, throw light on the real con dition of the packing companies, and on the profits which consumers are paying on meat. According to the San Fran cisco Star, Armour and Company in creased their capitalization from $20,- 000,000 to $210,000,000 since 1916. In 1916 the company was capitalized at $20,000,000. In October of that year a 400 per cent stock dividend was de clared, and the capitalization increased to $100,000,000. Through the issuance of additional stock, both preferred and common, the capitalization within a few years was increased ten-fold. This device of course enables the com pany to declare dividends which seem to be modest. A 10 per cent dividend on a capital stock of $200,000,000 does not seem as excessive to the public as a 100 per cent dividend on a capital of $20,000,000, though the profits are the same. Wage increases are staved off, by pleas that the company is hardly mak ing expenses, and consumers are tricked into believing that there is very little profit in the meat business. Co-operative control of the packing industry by the consumers may seem to be a rather remote solution of the prob lem, but it is none the less a sure one. The consumers of Switzerland are sup plied with meat through the largest packing house of that country, which was bought out by the co-operatives and is now under their management and con trol. They can attest to the savings ef fected through co-operative administra tion of a basic industry. At the same time Swiss consumers are spared the knowledge of the thousand and one tricks resorted to by extortionate profi teers in making the public bear the great est possible burden with the least possible pain. H. R. 22 CO-OPERATION CO-OPEEATION 23 REPORT OF COMMITTEE ON CO-OPERATIVE DISTRIBUTION OF COAL PRESENTED TO THE THIRD CO-OPEEATIVE CONGRESS By DR. G. L. KENNEDY Before embarking in the coal business a consumers' society usually has a more or less successful store, and the more successful it is the better the prospects of making a success of coal distribution: First, because it should have estab lished a high credit rating so that it will be able to go into the market and buy successfully; Second, it will have a large number of enthusiastic members who will be anxious to buy coal from their own or ganization ; Third, the larger the number of cus tomers the society has in other lines of merchandise, both members and non- members, the greater their market for coal. If a society is making a success of a grocery store there would seem to be no good reason for neglecting to enter the field of coal distribution, but great care should be exercised to keep down the initial investment to as low a figure as possible. I might cite the experience of the Villa Grove Society as an example, and while the local conditions will modify circumstances a great deal, yet the gen eral principle remains the same. The Villa Grove Society was successful _ in getting in touch with a friendly mine operator who was willing to ship them coal although they did not have the bona fide equipment of a regular coal dealer, viz., coal sheds, scales, office, etc. They took orders for the coal at the store and when a car arrived they en gaged teamsters to deliver it from the car, weighing it over the public scale owned by the city. The weigher was a very reliable man and the public imme diately took to the idea of getting coal that was weighed over the public scale in preference to taking chances with private dealers' weights. The business grew rapidly and the society put on one team of their own delivering and began negotiations with the railroad company to lease ground for coal sheds. After long delay on account of all their ground on side tracks being under lease, the railroad finally can celled a lease held by a private dealer and gave the Co-operative Society part of the ground. The society immediately erected sheds with ample storage capacity and pur chased another team and wagon. The Villa Grove Society find that for coal and ice, horse delivery is the most economical. They are still weighing coal over the city scales, as it is very conveniently located to their yards and the cost is small, 15 cents per load. They have pro ceeded on the policy of making the busi ness pay for the extensions and improve ments. The experience of that society has been that after the coal business was well established and their credit rating high, they could buy coal from a great many different firms without any ques tion of whose scale was doing the weigh ing or what our equipment was. In the early part of the game, however, this is a sample of letters received in reply to inquiries: '' Gentlemen:— In reply to your letter: We are in position to furnish you with ten to twenty cars of Franklin County coal for the coming season. Our present basis of price is $4.15 per ton, f.o.b. mines, on prepared sizes. The quotation, of course, is made on the assumption that you have yards, scales, office and the proper equipment to take care of the coal business in your community and that you have proper financial rating to take care of your obligations." Through one of our members we finally got in touch with a friendly operator who was willing to ship coal to us to be distributed from the car. The city installed a public scale and we paid 15 cents per load for weighing, delivery being made by teamsters at 75 cents per ton. All orders were taken at the store and the orders were given to the public weighman and he directed the teamster where to deliver. The coal business grew rapidly and a team of our own was put on. We had many orders for coal that we were un able to fill, so we began negotiations with the railroad to secure ground for storage. The land finally procured, we began erection of four bins, and now carry dif ferent sizes to take care of all demands when a car is not on track. At this time we cannot only buy from different firms, but they send their sales men to try to get us to handle their coal. We are now handling more coal than three private dealers combined, in spite of the fact that 40 per cent of our mem bers belong to the shop crafts still on strike. The story of coal distribution at Staunton, Illinois, is best told in the words of the manager, Mr. Peter Moerth, as follows: "The miners' organization, in early 1914, concluded to establish a coal yard under their jurisdiction. Local coal operators were at first hostile and would not sell us, so we made up with a friendly operator in a neighboring town. We bought a pitless scale which cost $69.50. A back room in an empty building close to the tracks was rented, the crating of the scale was used to make a desk, a chair was borrowed, and the weigher was required to furnish a pencil. We also had weigh tickets printed, and we paid for same out of the profits of the first car of coal. "As long as the mines maintained chutes direct at the workings, coal was retailed to the community at a reason able price, and the miners working in that mine got a preferred price. The new mines discarded those chutes, and are now equipped with mechanical dumping devices, coal being loaded only into railroad cars. This gave the pri vate dealer the opportunity to profiteer. We found what the dealer had to pay and the profits he extracted. We started to sell our coal at 80 cents under the prevailing retail price in spite of the fact that we had a higher freight rate. In those days (1914) the miner received 63 cents per ton for digging the coal, and the dealer extracted $1.25 as his share for working the scale beam and issuing the weight ticket. "The miners' union resolved that the yard should be operated for service at just enough to pay operating expenses. After we operated for a year the home operators came to terms. "We are still running approximately under the same basis on which we started, with the exception that our $65 scale has grown to two scales, one on each railroad, costing $1,800. Deliveries are made by the teamsters' organization on a tonnage basis. The teamster col lects for delivery and for the coal, and pays all moneys so collected to the man in charge of the yard. "Here is a summary of our opera tions for 1921: Received 233 cars; 9,494 tons. Cost of coal at mines, $26,570.72; freight on same, $2,848.30; war tax on freight, $85.40; operating expenses, $2,242.50. Total cost of coal, $31,746.92. Total receipts, $32,601.65. Profit, $854.73. Average net profit per ton, 9 cents. Can anyone accuse us of profit eering? At this rate we eliminated all competition. We saved our community during the eight years we operated our yard over $100,000. "Not all Co-operative Societies are situated to handle fuel as we are, but this is one instance where a labor organ ization used its power to drive the mid dleman off its back. "This is one instance where the coal yard preceded the store. The store de veloped later. A short explanation is necessary. The coal bills were due every 10th of the month. About half our sales were cash sales. This cash was used to specialize in a few lines in large quanti ties, such as potatoes, apples, corn, hay and feeds. Later, flour, bacon, coffee and lard in smaller quantities were added. In a year's time we had a regu lar retail store developed and the busi ness had outgrown the location. "In 1918 the reorganization took 24 CO-OPERATION place. We are now operating under the Rochdale plan with 300 members and a share capital of $16,000. In four years we saved our membership $19,000 in savings-returns. "To establish a coal yard there must be track facilities for unloading. We leased a parcel of ground at a nominal annual rental from the railroad. The road extended a side track and charged us the cost. Upon the ground we built a warehouse and a wagon-scale. The warehouse serves as storage room for flour and other nonfreezable stuff and it also contains the coal office. This ar rangement would be possible in smaller towns, but in large cities all available space is monopolized by large interests and the distribution of fuel is exclu sively in the hands of speculators. "In some mining towns the miners' union distributes coal to its members, using the public scales, or even a pri vate scales, and pay for the use of same. Storage bins are not absolutely neces sary." In conclusion, we wish to say that con ditions in the country in regard to coal supply are in a desperate condition. The operators and brokers are reaping a great harvest. The public has now paid all the losses incurred by these people in. the strike, and this winter should add millions to their fortunes. In the opinion of the chairman of this committee the distribution of coal is not in as serious a condition as the produc ing end; and while we must push the organization of the consumers co-opera tively, I think it is going to be too slow a method to take care of the ownership of the mines. I believe there is going to be a complete collapse of the industry before we can reach that point, and even with as little faith as I have in the efficiency of government interference, I think it will be necessary for some plan of nationalization in the near future. Not because it is the best plan, but be cause the co-operative plan will not work fast enough to avert the chaos that looms ahead in that industry. FOREIGN NEWS CO-OPERATORS PROTEST RUHR INVASION The seizure of the Ruhr Basin, the heart of Germany's industrial system, is protested against in a dispatch received from the Central Union of German Con sumers' Co-operative Societies and the German Co-operative Wholesale Society. It will be remembered that the German Central Union is the most powerful edu cational federation on the Continent, embracing 3,000,000 members enrolled in 1,800 local societies. Its affiliated so cieties in 1921 did a business in excess of five billion marks. As the co-opera tors comprise almost one-third the popu lation of Germany, their protest is representative of the point of view of the German people. The dispatch is as follows: "To the Co-operators of All Lands: "The Peace Treaty of Versailles, which makes a mockery of the self- determining right of the people, has led to repeated reparations demands far ex ceeding the resources of the German peo ple, and in their ravages upon Germany have affected the entire civilized world. "In the meantime, the rational na tions long ago arrived at the conclusion that this policy of senseless hatred and blind revenge not only threatens further bloody wars, but permanently disturbs the domestic life of all peoples and hinders their development. In all coun tries millions of starving, stunted and despairing groups of unemployed attest the unreasonableness of this inhuman desire for reprisal, which does not sense that barbarism directed against the Ger man people will degenerate into barbar ism against all humanity. "Unheard of sacrifices have long been made by the German people, already ex hausted by many years of war and robbed through the Peace Treaty of many of their most valuable resources. CO-OPERATION 25 With a recklessness known only during the worst days of embittered warfare, unbearable burdens are laid during times of peace, by the methods of mili tarism, upon a population entirely de fenceless and incapable of resistance, and full of longing for peace. The im possibility of fulfillment of these exag gerated and boundless demands has re sulted in threats of force. "In the face of the solemn principles proclaimed by the Allies, millions of Germans through the Peace Treaty have been compelled to become a part of other nations, against their wishes, and with out their being given an opportunity to make known their desires. To-day we are again threatened—because Germany cannot accomplish the impossible—with further punishment, by the seizure of large provinces with purely German populations, and their annexation to France. "The Rhine, the Saar Valley, and now the Ruhr Basin, are to fall to the same insatiable imperialism which, dur ing the days of the first Napoleon, once forced all Europe to arms against France. Toward the industries of Ger many and the Ruhr provinces this im perialism is stretching its greedy hands! "A cry of indignation is heard from the German people. These states are truly German in language, traditions, and national feeling, and they desire to remain German. Their populations re fuse with deep indignation to be sepa rated from a nation to which they are bound by the strongest bonds that hu manity recognizes—those of blood ties; they refuse to be forced, like a submis sive herd of cattle, to become part of a nation whose language they do not speak, whose customs are foreign to them, and whose nationality they do not desire, no matter how much they may want to as sociate with them in a peaceful and neighborly fashion. "Together with the population of these threatened provinces, all German Co-operative Associations lift their voices in loud protest. The brutal eco nomic servitude under which the Ger man people are suffering, the constant attempts to ruin Germany's stability as a nation, are an insurmountable hind rance to the solution of the difficult economic relations earnestly being striven for by Co-operative Societies of all lands, and a continued, grave danger to the co-operative ideal of World Peace. "In the name of the German people, we demand that Reason and Humanity displace the present day methods, and that all lovers of peace command the end of the ruinous and deadening greed for land. We appeal to the Co-operators of all lands, in the interest of the Co operative International, to join us in our protest and appeal." ITALY: LAND OF CO-OPERA TIVE DIVERSITY Early in 1922 Malcolm Darling re ported at some length in the "Bombay Co-operative Quarterly" on the condi tions of co-operation in Italy. It is one of the best surveys that has been made