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 of the movement in that country, now so sorely beset by the European Ku Klux Klan. This study was made, of course, before Mussolini let loose his hounds of reaction. The most powerful organizations in Italy are those of the co-operative far mers and those of the laborers. Neither of these are consumers' societies, of course, but they are known as '' co-opera tives" in Italy, and they do have char acteristics which distinguish them sharp ly from the agricultural co-operative marketing associations of the United States or the self-governing workshops familiar to some of us. The 2,500 labor societies include groups of masons, bricklayers, cement- workers, dockers, carpenters, day labor ers, carters, and many other manual workers. They take contracts to build roads, hospitals, and factories, town halls, even railways. In some towns the profit-making contractor of the old type is entirely extinct. Certain areas devas tated by the war are being rebuilt by these groups. Even the railroad stations in many of the cities of Northern and Central Italy are manned by co-opera tive societies of porters who contract di rectly with the railroad companies. In the operation of industry itself the sue- 26 CC-OPEKATION cess is less marked, although a few intri cate industries are manned by these groups. The co-operative farm has developed in two directions. The farmers, by buy ing or leasing large areas of land, suc ceed in eliminating the rent collector and in stabilizing employment. But the Catholics organize the individualist type of community, in which each farmer cul tivates his own plot, paying rent to the society; while the Socialists organize col lectively, working the land in common and pooling their crops to be sold all together by the society. The members of the first type of co-operative farm sell their crops individually; there is lit tle social responsibility or economic solidarity. The Socialist farms, on the other hand, are similar in their social significance to the syndicalist co-opera tives in the cities. In two of these vil lages theaters are being built from the profits of the farms, and one of these is equipped with reading and recreation rooms as well. Without doubt, both these kinds of farmers' co-operatives profiteered heavily during the war; but that has been done by such groups in other countries as well. Their contribu tion to the agrarian movement is the ef fectiveness of their efforts to get rid of petty landlordism and much of the out rageous exploitation by the middlemen. There are about 500 of these farms. Italy also has about 2,750 village banks, 800 urban people's banks, 1,500 creameries, 1,000 supply societies, 6,000 stores. The movement is not as sound here, though, as in other European countries. It is divided by political and religious prejudices. Bach group is animated by great fervor; there is much idealism, and the exhilaration of battle lends to the societies a picturesqueness which is in teresting locally; but these people have yet to learn that there is no room for battle between true co-operators—at least until some of the fangs of the profit system have been drawn. Unfortu nately, almost every Italian seems to be a politician or deeply interested in poli tics. This results in widespread division within the co-operative ranks, and ren ders impossible any effective central or ganization for the entire movement. This is in very sharp contrast with the movement in Germany, where politics and political discussion is positively for bidden. Italian experience provides a warning to certain farmer and labor interests in the United States. For years the Italian government made grants to the co operatives, helping them when they were in trouble, advising them with their problems, etc. But within two years the government has suddenly with drawn all aid, progress stopped, and many societies had to suspend. The co- operators were leaning on a support which is never sure, in any country, for governments come and go. German co operatives, on the other hand, have al ways insisted on rigid self-help and mutual help in time of stress; and to day the German movement is becoming the most powerful in all Europe. CO-OPERATIVE NEWS FROM DENMARK The consumers' movement of Den mark, according to a correspondent in Copenhagen, is both a city and a coun try development. In the cities and towns most all of the membership is industrial workers. In the rural sections of the country, almost the entire membership is independent farmers (Denmark has no tenant farmers). There are 1800 of these societies with a membership of 400,000. A special Central Organization of town societies only includes 30 of these latter associations with a member ship totalling about 50,000. The Socialist movement has practically no influence upon the rural co-opera tives ; whereas in the towns, most of the leadership are Socialist. A certain col laboration takes place between the social- democratic party and these town so cieties, although technically, the socie ties are non-political. The Danish co- operators themselves can give no precise figures as to the proportion of members in the Danish Parliament who are mem bers of the consumers' societies. The Socialist representation in the Parlia- CO-OPERATION 27 meat is: in the Lower House, 48 out of 149; in the Upper House, 22 out of 76. Though the town societies and the rural societies differ on many things, they have united in the establishment of the Danish Co-operative Wholesale So ciety, and this institution serves them all impartially. SUBSIDIZED WORKERS' FACTORIES The "Swiss Co-operator" of Dec. 6, 1922, publishes an interesting bit of news from Germany with regard to workers' co-partnership factories. We pass it on to our readers, together with the com ment of the Editor of the "Swiss Co- operator". "Creation of a producers' co-operative to give work to the unemployed. The German Syndicalist Union in 1920 founded a co-operative enterprise for the manufacture of clothing, in or der to procure work for the unemployed in the clothing and textile industries. The Minister of Labor of the German Government granted this enterprise a subsidy of twenty-five million marks, from its fund for productive assistance, but at the end of 1921 he refused to grant an additional subsidy. This led to the dissolution of the society.'' To this news is appended the follow ing significant comment of the editor of the Swiss journal: "We should note that this question of workshops for the unemployed is very controversial among the ranks of union ists. In order to sell their products to advantage, the workers are obliged to content themselves with the lowest pos sible salary. This gives rise to disastrous competition among union members; while on the other hand, where these workshops pay the union wages, they cannot exist without subsidies. In either case, say the opposing unionists, the disadvantages of these producers' co-operative workshops appear to out weigh the advantages.'' CONTRIBUTED ARTICLES SUCCESS AT CRYSTAL FALLS, MICHIGAN By CEDEIC LONG The Co-operative Society at Crystal Falls is a decided success. Yet it vio lates some of the important rules and practices of Eochdale Co-operation. Probably the enemies of Co-operation would say its success is due to these violations; but as a matter of fact the society is prosperous in spite of these errors, and if they were corrected the prosperity would be even greater. It is eleven years since some farmers and workers opened the store in Crystal Falls, after importing a co-operative manager from another part of the coun try. Today the membership includes many of the professional and business men of the town, and people of all nationalities and all creeds are buying their groceries, meats, flour and feed co operatively. Two years ago the full $30,000 for which this society is incorporated was entirely paid in, and since then, owing to various causes, the directors have not yet reincorporated for a larger amount. Therefore, we have here an illustration of the evil of limited capitalization; no new shares can be sold. The business is successful, hence the shares which origi nally sold for $10 now have a current value of $15—50 per cent above par! When the new papers of incorporation are filed, a large part of the surplus will be allotted to the members as a stock dividend, and shares will again be at par. This society is also paying interest on capital at the rate of 8 per cent—an other factor which boosts the value of these $10 shares. This rate should of course be two or three per cent lower, and a larger share of the earnings of the business should go toward savings- returns. Again, the outstanding accounts with 28 CO-OPERATION members and customers run up to about three-fourths of the amount of the paid- in capital stock. Accounts receivable on the books almost always amount to more than $15,000, and they have been as high as $23,000. The average manager would die of fright at such figures. But Andrew Ostrand, the manager, makes this business go in spite of such handicaps. The society now owns its large building, has three trucks, seven horses, and four wagons; employs six teen people, and does a monthly business of $17,000. Last year a savings-return of three per cent was given to all pur chasers. When the local ice company began to charge the society excessive prices for ice, they put in a refrigerating plant, and now save hundreds of dollars a year on refrigeration. The packing houses believe they have a monopoly of the meat business. Doubt less they thought they could get any prices they wanted in Crystal Falls. But the co-operative goes them one bet ter; for even though the packers can dictate terms to many farmers from whom they buy cattle, there are farmers in and near Crystal Falls who belong to the consumers' co-operative. Manager Ostrand turns his back on the big meat houses, buys his cattle from his fellow Co-operators, and several times a week has them slaughtered by the co-operative butcher to the great profit of the Co- operators. In 1919 the government collected $2,800 from the Crystal Falls society as income tax. A few months later the manager attended a district convention of The Co-operative League and heard the subject of income tax discussed from all angles. He put in a claim with the government, and the society is now get ting its money back. Crystal Falls is a small town on a branch railroad. The Atlantic and Pacific Tea Co. is making a desperate effort to get a footing in town and is having some success. But the people are fairly well educated to the value of Co-operation by this time; and the co operative is gradually eating its way into the very heart of private business in that community. CO-OPERATIVE STORE ADVERTISING By WILLIAM A. KKAUS The growth and development of any organization of people depends upon the interest centered upon it by those con stituting the group and also upon the extent to which it is capable of arousing a like interest in others. By means of periodical meetings and lectures on co operative subjects and aims the co-opera tive ideal should be furthered. But these should not be confused with store advertising. A committee on publicity should be a part of every organization. Enthusiasm tempered with tact, a keen conception of the habits and traits of the surrounding community, are essential. Publicity must conform with the prevailing con ditions in the particular section. There must be no exaggeration; plain facts should be presented in the most interest ing way. All items of interest having news value should be despatched at once to the ed itor of the local daily or weekly paper; very little material will be rejected by them unless the article is plainly one of propaganda or commercial advertising nature. News items containing personal opinions of the writer will also be re fused. There are, however, sufficient oc currences in the ordinary activities of a co-operative society of news value which should constantly be brought to the public's attention. On the other hand, if the society has a business, this phase of its activities should be conspicuously placed before the public. The simplest method is by the adoption of some slogan directly con nected with the society's undertaking. For instance, "Shop at the Co-op" has been made the slogan in one society which is operating two successful stores in a community of less than 6,000 in habitants. Any person living in that town more than a few weeks knows of the "Co-op" Stores and their locations. Very little effort is directed upon the drawing of attention to special bargains —"Shop at the Co-op" is the slogan. In connection with, this campaign this CO-OPERATION 29 society has also adopted two character cuts for newspaper use known as "Pop Co-op" and "Mom Co-op." These characters are used in news paper advertising with timely, catchy phrases, always ending their remarks with "Shop at the Co-op." Advertising to bring results must be persistently maintained, and if a society is not in a position to do this it is better to center its efforts on the effect of news items to keep the interest of the public alive. Advertising should be kept free from discussion of ultimate co-operative ideals or criticism of the existing economic system. Co-operators should strive for effi ciency and develop the habit of "Shop at the Co-op" among the people of the community. When this habit is estab lished it is easy to further interest in other co-operative activities. A regular monthly bulletin or paper full of co-operative news and propaganda is the next step to further strengthen the society. This paper, modeled some what along the lines of the average house organ now commonly used by all large industrial concerns, will be sure to bring good results.* A publicity policy modeled on these lines is bound to bring results. We must remember always that things worth hav ing are worth working and waiting for. FARMERS' CO-OPERATIVE IN SURANCE CUTS RATES By BORIS FOGELSON A saving of over $145,500 in one year is the accomplishment of the Farmers' Co-operative Fire Insurance Company located in Woodridge, N. Y., according to the report to the tenth annual meet ing of the association. Previous to the organization of a co-operative fire insur ance company in Woodridge, the farm ers were at the mercy of the powerful companies, which raised rates over night, cancelled policies weekly, and de manded new premiums. It was to com bat these evils that the Farmers' Co- * Editor's Note.—The "Home Co-operator" and Associate magazine are designed to meet •this need. operative Fire Insurance Company was brought into existence ten years ago. Now this co-operative is carrying $5,- 880,950 worth of insurance on farm property, distributed among 1,506 policies. During the past year the company gained over $1,500,000 in insurance writ ten. As the fire losses were fewer than during the previous year, it was decided to cut the premium rate considerably. The average rate was accordingly re duced from $9.06 per $1,000 of insur ance to $4.45. On certain classes of insurable property, the rate is as low as $2.00. Needless to say, the premiums charged by the Co-operative Company are much lower than those of the pri vate insurance companies, resulting in a saving of $145,000 during the past year, to the co-operating farmers. "Woodridge, N. Y., has three co-opera tive fire insurance companies, which are closely connected with each other. The insurance laws limit the amount of in surance which can be taken by any one company on a single property. In or der to adequately provide against loss, two subsidiary companies have been organized by members of the Co-opera- tive Fire Insurance Company, called the "American Co-operative Fire Insur ance Co." and "The Third Co-operative Fire Insurance Co." These three com panies combined can now insure each, building for $15,000, and each farm property for $21,000. Combining the annual reports of the three companies, it is noted that they wrote 1,736 policies for $6,810,980 in surance. Deducting the cancellations, expirations and reductions of 784 poli cies, amounting to $2,821,480 insurance, there was a net gain of 952 policies with $3,989,499 insurance. The total insur ance in force at the close of business on September 30, 1922, was 2,632 policies for $9,728,524. The figures for income of the year are very gratifying. The three companies had a combined income of $70,854.62. Adding to this the bal ance from last year of $27,373.65, there was a net income of $98,228.27, from which disbursements for the year were $38,191.45, leaving a net balance in the five banks of the companies of $60,036.82. 30 CO-OPERATION Although these co-operative com panies are under the strict supervision of the Insurance Department of the State, and in spite of the neat surplus they have in the banks, we have had to fight the rumors spread by agents of private insurance companies. Where these agents find they cannot influence the farmers with their lies against the co-operatives, they bring pressure to bear upon them, through the mort gagees. The latter are told that the property is not safely protected through co-operative insurance, and some of them have therefore prevailed upon the farm ers to withdraw their insurance from the co-operatives. In spite of this opposition, the co operatives are becoming more popular, they are doing a greater business than ever before, and have persuaded many mortgagees to accept co-operative poli cies. The farmers of Sullivan County, New York, are learning through practical experience that they can insure them selves through their own companies at a. lower cost than is possible by private stock companies. NEWS AND COMMENT EMPLOYEES WHO CO OPERATE "The Franklin Employee" is the title of a little pamphlet of 22 pages just is sued by the Franklin Co-operative Creamery Association of Minneapolis. It contains letters from 60 of the em ployees of the creamery, written in answer to the question "Why Are You Working for the Franklin Co-opera tive ?'' This pamphlet is one more proof that the workers in this consumers' co operative are really co-operating. One of the very weak places in the co-operative associations of this country is in the working staff. In the majority of cases the employees are not true co- operators; they are job-holders. Yet there can be no genuine co-operation un til the workers themselves get the co operative spirit and transmit it to the customers in the store or bakery or creamery. A very few quotations from a few of the letters follow: "I am working here because there is a general atmosphere of good feeling and good fellowship pervading the as sociation. '' "Because our success has demon strated that the working people are fully capable of managing a large busi ness with a profit both for themselves and their stockholders.'' "Because at the Franklin Creamery the profits gained by (the workers') toil are not going to tear down his stan dard of living for his family, and that to regain his loss he won't have to stand on a picket line while thousands of babies are doing without milk." "Because I believe in co-operation as the best way to change the present eco nomic system under which the consumer is paying the highest; the producer gets the lowest possible for his products. Co operation is the place for democracy in industry. We recognize no masters, no slaves.'' " (Because the Franklin Creamery is) operating a business for the good it may do, rather than making an exorbitant profit for one individual." " (Because) nothing but union labor is employed (and) its success is built on the principles of co-operation and service and that service to the com munity is the paramount aim rather than amassing a fortune for some pri vate capitalist." '' (Because here I have) an opportu nity of providing my family and myself, not merely an existence, but a comfort able living and a feeling that life is, after all, worth living.'' "(Because) I enjoy being one of the spokes in a great wheel that will crush the rest of those great milk dealers that always used to bleed the public and also their workers for every cent that was in them." '' (Because) this is the only place a true union man can work and deliver the only pure milk and cream in town; also because I believe that this creamery CO-OPERATION 31 will be the only creamery in Minne apolis in a short time." "Not only because I need the money, but to try and advertise what co-opera tion is. That is the only way the work ing man can ever get a fair deal." "It gives each and every one of the workers an opportunity to prove that business can and should be conducted on a co-operative basis." '' (Because) the so-called Captains of Industry have always told the workers that they couldn't run a business of their own and do it successfully, and there is a certain amount of pleasure and keen delight in showing them they are wrong as usual." " (Because) when you get a body of people all pulling together for one great cause, Co-operation, you get wonderful results.'' "Because its aim is to eliminate ex cessive profits in addition to degraded quality of products. Because it educates and does not drive (its workers)." "(Because) the Franklin Co-opera tive Creamery is one of the strongest proofs that the workers could be trusted to operate and manage industry for the benefit of the workers and the public." "Because at the Franklin Co-opera tive I am given an opportunity to work with men and women who are actuated by the same motives of service, with the same aid, the goal of which is the Co operative Commonwealth for the whole, rather than individual advancement for a few at the expense of the many." "(Because) the Franklin Co-opera tive Creamery pays enough wages so that my wife and I are able to keep posted on events—that is, buying books and literature and giving my children a good education." " (Because) Co-operation is aiming to employ the most efficient method and not have any waste or profit connected with it." " (Because) the workers are going to gether, always pulling together for one thing, 'the largest creamery in the city.' When we go to the customer we know we have quality and purity which we have never had before." "(Because), with all our imperfec tions and shortcomings, I can see in our united efforts the beginnings of a reali zation of the dreams and the hopes and struggles of the common people, and I am grateful that I have an opportunity to play a little part in this realization. Life to me means more than a struggle for a living, and the Franklin Co-opera tive satisfies that desire." These are but samples. Co-operators in all parts of the country will do well to get one of these pamphlets and see for themselves that co-operative em ployees may be co-operative enthusiasts as well. The manager of the Franklin Creamery will be glad to send a copy of this to anyone who writes for it to the office at Minneapolis, enclosing 10 cents to cover the cost of printing and post age. FUENITUEE FIEE INSURANCE THROUGH CO-OPEEATION In a small office in the Yorkville sec tion of New York is housed one of the oldest and most successful co-operative societies in the United States—The Workmen's Furniture Fire Insurance Society, with 40,000 members scattered over the country and a total insurance value of $30,000,000. The Society now has branches in 52 cities. Established in 1872, the Society recently celebrated its fiftieth anniversary. In all these years, the average assessment for each $100 of insurance has been only 11 cents, and recently it has been only 10 cents; insurance at from one-third to one-tenth the ctistomary rate charged by insurance companies operated for profit. This organization is essentially for workers only. Each member has only one vote; none but members can take out insurance. There are no dividends whatever to be paid to capitalists, for even the Guarantee Fund is paid by the members themselves. A few German Socialists, members of the First International, back in 1871, be gan the organization. Propaganda meet ings were held for several months. At the end of the first year, the member ship was only 44. During these years a split occurred in the ranks of the Euro pean Socialists due to the disputes be- 32 CO-OPERATION tween the "Marxians", "Blanquists" and "Bakunists". Marx and Engels refused to serve on the General Council of the International, and as a solution to the difficulty, the headquarters was moved to New York where it remained from 1872 until 1876. Naturally the majority .of the Socialists, occupied with their Socialist controversies and cam paigns, had but scant use for this little Co-operative Insurance Society—which, however, was destined to outlive not only the First International but one or two others besides. For 14 years the society operated with out the services of a single paid officer. In 1878 the first branch was established in Paterson, and other branches fol lowed in rapid succession. In 1887 there were 4,000 members enrolled; in 1900 nearly 14,000; and in 1915 close to 30,000. To-day the membership includes many nationalities and the majority are prob ably non-Socialist; yet the original spirit still animates the society and its officers. We quote briefly from the Fiftieth An niversary report: "Every worker capable of thinking for himself should perceive that in an organization such as the Workmen's Furniture Fire Insurance Society * * * can be seen, in a small way, what ultimately can supplant the capi talist society, based on class divisions— through a form of co-operative enter prise on a gigantic scale. The establish ment of such a form of society would mean the end of exploitation in its en tirety. * * * * * * "What a tremendous Power this would represent! And what could the workers not accomplish in the way of material help for their members and for the intellectual advancement of the working class as well!'' WORK OF THE NORTHERN STATES CO-OPERATIVE LEAGUE During the nine months which the Northern States Co-operative League has been in existence, it has established itself as an organization which is capable of really producing something in the line of co-operative educational work. Tak ing into consideration the short time which the League has been in existence and the relatively meager funds it has had at its disposition, the work it has so far accomplished is not to be slighted. The most important educational work done by the League has been the routing of speakers. The Executive Board in its meeting held in last August, decided to route Mr. Cedric Long, Technical Ad visor of The Co-operative League, on a speaking tour to the upper peninsula of Michigan, to Northern Wisconsin, and to Northern and Central Minnesota. The speaking tour was planned to last three weeks, and to begin at Sault Ste. Marie, Michigan on October 5th, but un fortunately Mr. Long was taken ill at Crystal Falls, Michigan, which was to be his second engagement in the schedule and had to return to New York. How ever, the Executive Board of The Co operative League sent Dr. Warbasse, the President of The League, to fill the most important engagements of Mr. Long, after October 13th. On the strength of this, Dr. Warbasse has spoken at Ash land, Wisconsin, on October 15th, at Cloquet, Minnesota, on the 16th, at Duluth, Minnesota, on the 17th, at Two Harbors, Minnesota, on the 19th, Su perior, Wisconsin, on the 20'th, and Minneapolis, Minn., on the 21st. Mrs. Edw. Solem of Minneapolis, has spoken twice under the auspices of the Northern States Co-operative League, in June at Sebeka, Minn., and in July, at Glenwood City, Wis. Mr. H. Sondergaard of Minneapolis, spoke in July at Glenwood City. Mr. Alanne, the secretary of the League, spoke at the following places: Gheeii, Minn., in April; Cromwell, Minn., in May; Wright, Minn., in June; at Glen wood City, Wis., in July; at Moquah, Wis. and Brule, Wis., in August. The Co-operative Central Exchange, how ever, and not the League, financed these trips of the secretary. The Secretary on his trips secured so far 50 one year, and 135 half-year sub scriptions for " Co-operation". The Or ganizer of the District League, the CO-OPEEATION 33 treasurer, the secretary and Mrs. Edw. Solem of Minneapolis, have been active in securing individual members for the League. Altogether 47 individual mem bers, each paying $1 a year in dues to the League, have been secured. The following Co-operative Consum ers' Societies are affiliated with the Northern States Co-operative League: Franklin Creamery Ass'n, Minneapolis, Minn., 6000 members; Central Exchange, Superior, Wis., 4500; Union Consum ers' Society, Duluth, Minn., 306; Cloquet Society, Cloquet, Minn., 275; Farmers' Store, Glenwood City, Wis., 210; Farmers' & Consumers' Ass'n, Wentworth, Wis., 86; Farmers' & Con sumers' Society, Brule, Wis., 76; Pilsen Ass'n, Mogent, Wis., 54; Farmers' Co. Wright, Minn., 80; Producers' Ass'n, Ashland, Wis., 100; Central Creamery Ass'n, Superior, Wis., 35. This is a total membership of 11,772. An interesting development in the young history of the N. S. C. L. has been the fact that such an organization as the Minnesota State Federation of Labor has considered the work the League does so important that it has decided to apply for membership in the League and has even asked for a privilege to be rep resented on the Board of Directors of the League. It is the only fraternal organization which has paid its dues in fraternal membership, as called for by the Constitution of the District League. CO-OPERATIVES AND POLITI CAL PRISONERS The Farmers' Co-operative Store of Wing, North Dakota, recently took ad vantage of the commutation of the sen tences of sixteen political prisoners in the State of Illinois by Governor Len Small, to go on record against the im prisonment of men and women for their opinions. The following telegram was sent to Governor Small by the co-opera tive society: "We, the undersigned citizens of North Dakota, wish to extend our heart iest congratulation to you for commut ing the sentences of the sixteen political prisoners in your state. We are glad that the grand state of Illinois lets her voice be heard in defense of freedom, as in the days of the great Lincoln, which are still in our memory. We hope the message will echo throughout the land and open the prison doors for other poli tical prisoners. Assuring you that the criticism, for your just decision, from certain men and from the reactionary press, will not hamper your good name, we are, etc." This telegram was signed by thirty- five members of the co-operative society. The Co-operative League, in accord ance with resolutions passed at the Third Co-operative Congress, recently sent a letter to President Harding demanding the release of all those imprisoned for their opinions. "THE FREEMAN" ON CO OPERATION We direct the attention of our readers to a stimulating editorial entitled "The Failure of a Theory", contained in the October 25th issue of "The Freeman". Lack of space prevents us from quoting more than a few sentences from the edi torial, with which we are wholly in ac cord. "The Freeman" attributes the fact that the peasants of Russia have been more successful than the city workers in the post-revolutionary conduct of productive operations to the training re ceived in co-operative enterprises by the former. "When the landlords had been ex pelled, the peasants extended to the es tates a system of allotment and cultiva tion which had previously been in vogue within the holdings of the village-com mune. Thus it was not necessary for the peasants to unite under a centralized leadership, or to accept and act on a complex programme, or to adopt over night a new way of life; they had learned by years of hard experience to maintain themselves in comparatively isolated, semi-co-operative groups, and each of these groups was prepared to en- CO-OPERATION gage in self-directed labor on the former landlord's estate, the morning after the manor house was burned." "It seems to us", says "The Free man," "that those who contemplate the democratic control of productive opera tions by the producers, should be able to see that the acceptance of a theory, even its unanimous and intelligent acceptance, can not adequately prepare the workers in industry to participate in the new task laid out for them. The ideal of democratic control makes a great ap peal to certain elements of organized labor; but if the aim is ever to be real ized, it must come about through the gradual extension of co-operative meth ods to one plant after another." FROM THE LEAGUE HEADQUARTERS CHAIN STORE ATROCITIES Jones is a manager of a chain store. He has a large family to support. He is a steady and efficient worker and has a good head for figures. He is employed By the Square Deal Grocery Corpora tion. Every Saturday night he makes up his weekly report and turns it in to headquarters. Once a month an inven tory of stock is taken. At the head office of the company a careful reckoning is made to learn whether Jones is "short" or "over" in his cash returns for the month. If he is five cents "short" he is sharply reprimanded; and a second or third offense means his discharge. If he is " over'', not a word is said to him; the surplus is "pure velvet" for the company. The best and most highly valued managers are the ones turning in the highest "overage". Sometimes the company has a great many "high over age" men on its payroll; at such times not only are the "shortage" men repri manded, but even the men who break even or a little better than even. Jones knows all this. He even main tains that the Square Deal Grocery Cor poration operates its business at cost and makes alllls profits from "over age" turned in by clever managers. He knows his own "overage" is high each month, for he gets no reprimand and his supervisor is unusually conciliatory toward him. At headquarters he is rated as Class A manager. But Jones's big service to the Square Deal Grocery Corporation consists en tirely in his deftness at getting from the customers who come to his store more than the market value of the goods they take away. He has four different meth ods of "working" his customers, with many variations on each method: (1) mark-up or overcharging; (2) short weight; (3) adulteration; (4) short change. He must, whenever possible, work one of these on every customer he serves. He may make nothing on a buyer of one or two articles; but he can easily make up for that on large buyers, col lecting a toll on several articles. Jones knows no other trade than that of groceryman. He has large family re sponsibilities and must not lose his job. He would be foolish to betray the system used by one chain company, for he would lose his position, and if he found another, would run into a system just as bad. He sticks with the Square Deal Grocery Corporation, plays the game as others play it, and keeps his mouth shut. Next month we shall put on exhibi tion some of Jones's little merchandising tricks. POLISH CO-OPERATIVE CARTOONS Among the various calendars and almanacs which the Christmas mail brought into The League office, by far the most striking and beautiful were those issued by the Propaganda Division of the "Wholesale Union of Consumers Societies of Poland. They are illus trated with co-operative cartoons which have power and high artistic merit. They are vivid illustrations of the strength of Co-operation, and their mes- CO-OPEEATION 35 sage is so simply and strikingly told as to be understandable by anyone. A desk calendar issued by the Polish Union con tains co-operative and philosophical ob servations from the pens of Prof. Charles Gide, E. Poisson, Marcus Aurelius, Vic tor Serwy, Goethe, Mazzini, Maeterlinck and other great thinkers. The Polish Union is to be congratu lated upon the artistic and propaganda value of their publications. OFFICERS OF THE LEAGUE The Directors elected at the third Co operative Congress have elected the of ficers of The League by referendum vote. The men elected are: J. P. Warbasse, New York, President. A. P. Bower, Pennsylvania, Vice- President. John F. McNamee, Ohio, Secretary. Waldema Niemela, Massachusetts, Treasurer. THE CORRESPONDENCE FILE "CO-OPERATION" UNDER THE NON-PARTISAN LEAGUE In regard to the program of the so-called Non-Partisan League in North Dakota, I will, in the following, explain as far as possible. The program announced in the first place was received very well. Some parts of it are now law. The accident insurance of the workmen proved to be a real blessing. Every workman must be insured by his employer. The hail insurance has to be corrected; but it is very good, and it is up to the farmers to use this kind of insurance and keep their money in the State instead of supporting the big companies. The exemption of improvements on the farm from taxation is very good. It puts the taxa tion equally on the owners of the land without respect to the improvements. The Non-Partisan ballot for the county officers and judges should be (as I learn it will be) extended to cover all State officials. But some of the ideas, though good, have turned out wrong. Plan for Home Building for Workmen. This proved to be insincere, when they limited it to $5,000, for leaders, or those favoring leaders, have homes costing many times that amount. Also bad management of the affairs. Idea good; directors bad. Consumers' Co-operative Stores. Good idea, but bad organizers. Farmers had to pay $100 just for the privilege of coming to the store to buy goods for cash and then pay 10 per cent freight. Every year the $100 lost $10, so that in 10 years all would have been gone and it would have been necessary to put in another $100. Very bad scheme and it proved a failure in our town; they collected but never started the store; and this made people afraid of everything co-operative. It will be a long time before they will gain confidence again in co-operation. Any other man doing this, if he were not protected in this way, would be in prison. The State Bank. A very good idea, but again it was used for political purposes and this killed the whole thing. Now they plan to use the bank for farm loans only. This is a good idea, if only they will keep the bank out of politics. If the bank had been used for the purposes for which it was intended, it would now be a benefit to the State. In Europe we find such State central banks with branches all over the State. I know the condition in Czechoslovakia, where they have Central Bank of the Savings Banks, Central Land Bank, Central Agricultural Bank for conversion of loans drawing a heavy interest into a loan in this bank on amortiza tion plan. Then there is a Central Bank of the Raiffeisen Banks for short term loans. So you can see this is nothing new. But political influence destroyed the best of the bank idea in North Dakota. The State Mill and Elevator. Poor manage ment of the small test mill at Drake spoiled the confidence. But everybody is in favor of running the State mill and elevator in Grand Forks. At present they are running on part production, but this will be expended to 3,000 barrels of flour a day. And the flour is very good. To keep this mill and elevator and to give both a fair trial is the promise of all interested parties, because the farmers and workmen of the State are back of the idea. Although there were many losses, we hope that in time this idea and the bank will prove to be a real blessing for our State,—if kept out of politics as promised by the present State Governor. (Rev.) V. F. MIKOLASEK, Lankin, N. D. FROM A DANISH COLONY IN MINNESOTA "Co-operation" looks like an old friend. (I read) every new number that comes to my house. Some thirty years ago I was an ac-tive member in Denmark when we organized our creameries. Making plans for co-operative stores, and am glad to note the progress of real co-operation. We have had and have yet more than our share of fake co-operative enterprises. I was President of the Mmn. Potato Exchange when that was organized, 36 CO-OPEEATION CO-OPERATION and resigned before it began operation, because the Board of Directors, inspired by the State Bureaucrats, employed a college graduate without experience as general manager, and the Exchange is on its knees today. . . . The Farm Bureau, since it was organized into State and Federal Association, is not quite satisfactory. The tendency towards Bureaucracy is growing. LUDVIG MOSBAEK, Askov, Minn. SOO CO-OPERATIVE EMPLOYEES GIVE BANQUET The Soo Co-operative Mercantile Associa tion of Sault Ste. Marie, Michigan, have an organization consisting of all their employees called "The Soo Co-operative Club," with J. A. Smith as their president, Clara Jocque, secretary, and Arthur Nelson, treasurer. They gave their first annual banquet on December 14th and had as their guests the board of nine directors of the association and their wives, also Charles G. Clarke, retiring cashier. This employees' organization has adopted its own rules and constitution and it assesses each member dues, which are taken out of the weekly pay check. In this manner they finance all their social activities. At 8 P.M. the guests and club, numbering about 90, marched in to music furnished by Cardins' All Star Orchestra and seated them selves to a bountiful feed consisting of roast turkey, cranberry-sauce and all the other fixin's, made palatable by being prepared by the employees from the bakery department, using the large ovens for the roasting. Mr. Smith acted as toastmaster and called upon President Ross. who spoke briefly on the fine co-operative spirit of all the employees, and wbo gave them no little credit for the splendid success of the business of the associa tion. Mr. Clarke was called to the front and Mr. Smith, in behalf of the employees, presented him with a beautiful Masonic emblematic ring. Mr. Clarke thanked them for the gift and told in a brief and emphatic way how the employees helped through co-operation to make the business of t^e association the great success it has attained. About 9 P.M. the doors of the dance hall were tbrown open to the general public and all made merry, dancing until 11 P.M. The Soo Co-operative Club say that this is only the beginning of greater activities and it is predicted that this "live bunch" of loyal workers will be a great asset to the local organization, who are lending every support to promote a true, royal co-operative spirit among its employees as well as its 400 stockholders. The next big meeting will be the annual stockholders' meeting in February, when it is expected that the dividend melon will be divided according to purchases made. The Board of Directors are planning on something special at this meeting in the way of a celebration of its tenth birthday. W. H. CLOSSEE, Sault Ste. Marie, Mich. FROM THE RUSSIAN CENTRAL UNION We regret very much having opened our branch office in New York after the beginning of the Congress, therefore it was impossible to send our delegates to the Congress with greetings. As all the emigrated representatives in America have transmitted voluntarily all their affairs and the properties abroad to the Centrosojus, we are now in the position to develop our work in the United States. The ardent wish of • all the co-operative organization is to start the international busi ness and ideal mutual relations, not by words, but in fact, therefore it is desirable to estab lish such a connection between the American and Russian Co-operation. We have written about this to our repre sentative in New York. With co-operative greetings, L. KHINCHUK, President of "Centrosojus," Moscow, Russia. GREETINGS FROM BELGIUM "We felicitate you upon the decisions tbat you have made in your Third Co-operative Congress, and hope to see them crowned with success so that the Co-operative Movement of your country will become more and more powerful. We hope to receive the printed proceedings of your Co-operative Congress. Very cordially, W. SERWY, Secretary, Office Cooperatif Beige, Brussels, Belgium. Wanted at Once: Manager for a large co-operative baking concern. Steady position. Must be a high type of execu tive and experienced in the management of baking plant. Also must furnish bond. Apply by letter giving experi ence, references and conditions. Mr. S. Sodo, Union Co-operative Bakery, 5801 Grandy Ave., Detroit, Mich. PUBLICATIONS of THE CO-OPERATIVE LEAGUE HISTORICAL Per Copy 3. Story of Co-operation ........................................................•$ M 1. British Co-operative Movement ............................................... -10 38. Co-operative Consumers' Movement in the United States....................... .05 39. Consumers' Co-operative Societies in N. Y. State, (Published by Consumers' League). . . . ............................................................. -10 TECHNICAL 4. How to Start and Eun a Eochdale Co-operative Society....................... .10 5. System of Store Records and Accounts......................................... .BO Per 100 $6.00 6.00 4.00 4.00 2.SO 1.00 1.75 1.25 6. A Model Constitution and By-LawS for a Co-operative Society................ .05 8. Co-operative Education. Duties of Educational Committee Defined.......... .10 9. How to Start a Co-operative Wholesale....................................... -10 27. Why Co-operative Stores Fail.... ...............................•••••••••••••• -02 2. Co-operative Store Management................................................ .10 14. How to Start and Eun 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 References 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 34. Co-operative Movement (Yiddish).............................................. .02 41. Farmer's Co-operation (By Benson Y. Landis)................................ .15 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 Eeal Co-operator; (25) Eesolutions 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 Eecreatlon?; (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-OPEEATION—(In bundle lots, $7.50 per hundred). Subscription, per year......... .....$1.00 HOME CO-OPEEATOE, 4 pages......................................................... -?1 per 100 INTEENATIONAL CO-OPEBATIVE 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 Eussia, 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.BO Gide, C.: Consumers' Co-operative Societies, American edition and notes, 1922. Cloth, $3.00; paper bound................................................................... .90 Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, $2.00; paper bound. . . . . ............................................................................... .60 Howe, Fred C.: Denmark, a Co-operative Commonwealth, 1921............................... 2.00 Maxwell, Wm.: History of Co-operation in Scotland, 1910................................... 2.00 Nicholson, Isa: Our Story..................................................................... .25 Powell, G. Harold: Co-operation in Agriculture. Macmillan................................. 1.50 Eedfern, Percy: The Story of the C. W. S................................................... 2.00 Smith-Gordon & Staples: Eural Reconstruction in Ireland, 1918.............................. 1.50 Eedfern, Percy: The Consumers' Place in Society, 1920...................................... 1.00 Smith-Gordon: Co-operation in Many Lands, 1920............................................ 1.50 Soiinichsen, Albert. Consumers' Co-operation, 1919. Cloth bound, $1.75; paper bound....... .75 Stolinsky, A.: The Co-operative Movement. In Yiddish....................................... 1.00. Webb, B. and S.: The Consumers' Co-operative Movement, 1921.............................. 5.00- Webb, Catherine: Industrial Co-operation, 1917............................................. 1.50 Woolf, Leonard: Co-operation and the Future of Industry.................................... 1.50 Woolf, L.: Socialism and Co-operation........................................................ 1.5O "The Co-operative Consumer" and "Co-operation," III (1917), VI (1920), VII (1921), VIII (1922). .... ............................................................................... 1.25 Transactions of Second American Co-operative Congress, 1920.................................. 1.00- Transactions of Third American Co-operative Congress, 1922.................................. The People's Year Book, 1922.................................................................. .75 (Ten cents postage should be added for books which cost more than $2.00, and five cents for the smaller books.) THE CO-OPERATIVE LEAGUE (Member of The International Co-operative Alliance) 167 West 12th Street, New York An educational organization for teaching the history, principles, methods and aims of tlie Co-operative Movement and for the promotion of Co-operation in the United States. Join The League and thus help promote the educational work of the Co-operative Movement. Individual Membership, $1.00 a year. Subscribe for CO-OPERATION, the Monthly Magazine of The League, and keep in touch with the Movement. Enclosed find $......... for Subscription for CO-OPERATION, $1.00. Membership in The LEAGUE, $1.00. Name. Address. Date.... Co-operative Central Exchange Wholesale Grocers and Jobbers, Bakers We supply goods to Cooperative Societies ONl/i'. 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 now writing insurance in State of Wisconsin The Canadian Co-operator Brantford, Ontario, Canada The organ of the Canadian Co-opera tive Movement, owned by and con ducted under the auspices of The Co-operative Union of Canada. Published monthly 75c per annum MOVING PICTURES and Stereopticon Lectures may be rented from THE CO-OPERATIVE LEAGUE 167 West 12th St., New York City 1. "Some Examples of English Co-operation." Moving pictures of factory processes (two reels). . ...........................$5.00 2. "Co-operation in the United States." With 53 Stereopticon views.......... .$3.00 3. "The Co-operative Movement in Knssia." 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. 6d. a year. The Trade and Technical Organ of British Co-operation. THE HOME CO-OPERATOR A four-page magazine for use in co-operative societies. Issued monthly, in bundles, $1 per hundred. Published by The Co-operative League Publishing Office, Willimantic, Conn. Albert Sonnichsen, Managing Editor. GKJPOT* 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. 3 MARCH, 1923 10 Cents VITAL ISSUES BLACK OR RED? Washington has recognized the gov ernment of the black-shirted Fascist!, a government seized and held by force. Bed Kussia is still without the pale of United States recognition. The difference—is it force, violation of constitutional methods ? Not at all. The wrath of the Bed revolutionists fell upon the upholders of privilege and power, supporters of the Dead Past. The wrath of the Black revolutionists fell upon the workers and educators, leaders of the New Society. The victims of the Beds were the landlords, the profit-makers, and the aristocracy; of the Blacks, the co-operative societies, labor temples, and radical publishing plants. Bloody red has the spectacle of Bus sia's devastation been pictured to us. But so dark and murky is the trail of the Fascisti that many of us in the United States cannot discern the effects of Black revolution. New reports of Fascisti force and ter ror have just reached the Co-operative League, results of an inquiry of a com mittee of the International Co-operative Alliance recently sent to Italy. Says the man on the spot: "I could have spent many weeks, even months, in Italy, paying daily visits to the premises of Co-operative Societies which had been either pillaged or set on fire. So far as I could discern none of these crimes has been punished, no indemnity paid to societies damaged." A typically wanton act was the de struction of the headquarters of the Federation of Co-operative Societies of Bomagna, the Basponi palace at Ra venna. This was a famous old palace inhabited by Lord Byron in 1819. When the Co-operators purchased it in 1918 they were so conscious of their duties of preserving and improving the historic place, full of works of art, that they appropriated 50,000 lire from the surplus savings of their co-operative so ciety and entrusted Guerrini, a well- known painter, with the task of decorating the council hall of the admin istration with allegorical frescoes repre senting the triumph of science and co-operative agriculture over the ad verse forces of Nature, such as malaria, marshes,— The work was just completed when, without warning, one night in July the building was broken into by a band of Fascisti armed with revolvers, hand bombs, and cans of petrol, and the pal ace and the works of the Co-operators were totally destroyed by fire. The damage to the actual property has been estimated by experts to be 11,200,000 lire; the historic and artistic damage is beyond appraisal. The authors of these crimes enjoy 38 CO-OPERATION complete freedom from prosecution. The report continues: "When I exclaimed to our Italian friends, 'But what is the government doing in the face of all this?' they re plied, 'There is no government in Italy.' 'What about the courts?' They answered, 'The magistrates either connive at the acts of the Fascisti or do not dare to oppose them. You know it is the private financial in terests, seeking to destroy the growth of the workers' movement, who are acting under this political and nationalistic mask of Fascism. For instance, the majority of grocers in Magenta are Fascists.' " "This is what happened there. On the night of July 23d five motor lorries with hundreds of masked armed men dashed up to the People's House in Magenta, laid about them with their clubs, half killed everyone, appropriated 5,000 lire of the co-operative bakery, and a hundred lire, the savings of the small daughter of the manager; tried to set fire to the building, then drove on and pillaged and destroyed the three branch depots of the Magenta Co-operative So ciety. The manager of the Co-operative was driven out of the town and forbid den to return under pain of death. The members, however, put up a solid re sistance. For weeks, until they could roughly repair and replenish their stores, they bought nothing from the private merchants of Magenta. Their provisions were sent directly to them from the Milan Co-operative Society." "But this is really civil war!" I said, commenting on these outrages. "No, it is not civil war," our Italian friends replied. "Co-operators know it would mean the ruin of Italy if we met violence with violence. We do not wish war between Italians any more than war with other peoples. It is a question of endurance. This is a situation which may take seyeral years to surmount. If we but maintain the life of our co-opera tives during this difficult period, Co operation will resume its forward march." These Co-operators are wise indeed. But what kind of people are \ve who refuse recognition to the Reds of Russia, yet countenance the recognition of the Black government of Italy, which Ital ians themselves say "Is no govern ment"! A. D. W. DO SOCIALISTS WANT CO OPERATION? "The institutions that come nearest to what Socialists aim at are the co-opera tive societies administered on a demo cratic basis ~by their members. They are controlled by their members." This is what the editor of The New York Call (December 26, 1922) says. It is good doctrine. But is that what Socialists aim at? Positively not. The Socialists aim at enlarging and strengthening the political state until it carries on all the necessary business of society; and the political state is a very different thing from Co-operative Society. The same editorial says: "Enlarge the co-operative society to embrace the nation, modified and adapted for the larger functions it would assume, and we have something similar to the Social ist ideal.'' We may have something sim ilar to the Socialist ideal, but not similar to the Socialist state that we should get by the election of Socialists to political office. Here is the situation: The average Socialist has discovered during the last few years, if not before, that "captur ing the government" does not mean capturing the economic machinery of so ciety. The latter is the more important of the two. The government and the state are only the tools of the forces which control the property and the ma chinery of production and distribution. This lesson is being driven home by hard experience. Socialists, like all other people seeking a way out of the present chaos, are waking up to the fact that the co-operative method of economic organ ization offers a solution of the problem. But the Socialist believes that when the state has been made a Socialist state it will cast off its bureaucracy and coer cion and create a free society such as the co-operative society. And here is where the Socialist is destined to suffer disil lusionment. CO-OPERATION 39 There is a fundamental fact in human psychology which wishing will not change. It is this: One who has once struggled to power, even in what he be lieves is the interest of society, never voluntarily relinquishes that power. Officials of the socialized state are in the grip of this fact. They have won their power to do good for the people, and they will not give it up and say to the people, "You are free." Those in high places who believe they are acting for the public good will continue to keep the socialized state a permanent as well as coercive and domineering institution. Co-operative Society is a free society. One belongs to it if he pleases or resigns if he pleases. Because of these facts, it cannot compel patriotism and loyalty by coercive methods. It has no "sedition." Enlarge the co-operative society to em brace the nation and we have an organ ization which is diametrically different from the socialized state. The two are also brought about by diametrically different methods. The first is attained by voting for it, or wish ing it, in other words. But to attain Co-operative Society the people must work. They must train themselves from the small beginnings in mastering dis tributive industry. They must gradu ally learn by doing to perform the ser vices which profit business performs. Then they must move on, and by their own labors learn how to carry on big business and to produce for service— training themselves in their own school of experience as they go. It is not an easy task. It means learn ing by trial, error, and success. But that is the only way it can be done. The people of Europe are slowly learning these fundamental lessons. It is a good sign that the Socialists want Co-operative Society. A still bet ter sign will be, learning how to get it. J. P. W. THE PROGRAM FOR WORKING- CLASS CAPITALISM "You workers could take over these factories and run them yourselves. We want the workers to control industry and get rid of capitalism." We heard that at a mass meeting the other day. We have heard it thousands of times before. It always wins great applause from a radical crowd. Most radicals never seem to question the logic of it. And yet it is illogical. When the workers take over the capitalist factory in which they work, it still remains a capitalist factory. It isn't the owner ship by a wealthy man that makes the business capitalistic. It is capitalistic by its very form and structure. In this business the workers get a fixed wage, the consumers of the product pay a fixed price, and all the profits go to the owner. But the fault is not in the owner; it is in the nature of the business. When Labor takes over a capitalist business, instead of the business becom ing democratic, the workers become lit tle capitalists. The capitalist business makes capitalists of its owners, no mat ter who they may be or what class they may have belonged to. Business is thoroughly democratic only as its purpose is service rather than profit. That means a new kind of or ganization within the business itself. Men organized on a basis of equality administer an industry so that it will fairly serve them all, with special favors to none. But that is something entirely different from capitalism. British imperialism controlled by British Labor would still be imperialism. Exploitation of Mexican oil lands and Mexican labor by American workers would still be exploitation. The mili taristic program of Secretary Weeks would not be transformed to pacifism overnight if the American Federation of Labor were to adopt it. We wonder why thousands of our radicals appear so anxious to have the American workers adopt capitalism. The next time we hear this famous "Call to Action" from a radical plat form we are going to ask some questions. We have already seen a large radical labor organization in this country un dertake to start business in Russia on a capitalist plan. Why have these radi cals such a grudge against the co-opera tive method of doing business? We wish we knew. C. L. 40 CO-OPEEATION REPORT OF COMMITTEE ON AGRICULTURAL CO-OPERATION1 Presented by W. C. Lansdon For more than fifty years American Agriculture has been groping about for some workable system of co-operative business. It is only within the last dec ade that much real progress has been made. During the last three years more along this line has been attempted than ever before and the advocates of Co operation like to believe that much prac tical good has been done; and that with increasing knowledge of principles and experience in methods there is assurance of even greater results in the immediate future. Two distinct types of co-operative marketing associations have been devel oped and with more or less efficiency and success are operating in our country at this time. Designated by their respec tive places of origin they may be called the Rochdale and the Danish systems. Rochdale organizations usually buy farm products from their members and frequently from other producers for re sale at advanced prices. The profits from such transactions are distributed among the members who furnish the capital and the business. Enterprises conducted in conformity with the Danish plan almost invariably act only as agents for their producing members. This system requires no cap ital investment except to provide hand ling facilities, and associations so organized are carried on without profits, all proceeds of sales, less only operating expenses, being returned to members. The first co-operative associations in the United States were organized in con formity with laws then effective. As all legislation for the supervision and regu lation of business, until a few years ago, had been enacted in the interest of cap ital and of the profit system, the devel- i Editor's Note.—Due to limitations of space, Mr. Lansdon's excellent report had to be com pressed into less than half its original length. The full report appears in the "Transactions of the Third Co-operative Congress," which may be procured from The League. opment of co-operative enterprises were seriously retarded by constitutional and statutory restrictions. Proposed co operative concerns were organized and conducted as joint-stock or common-law corporations. In these conditions it was usually only a short time until the big stockholders absorbed the holdings of the poorer members, and voting in propor tion to their shares, reorganized the co operative as a profit-making concern operated only for private profit. The great increase in the number of Rochdale societies for marketing crops and purchasing supplies for the use of farmers was due almost entirely to the educational activities of the Grange, the various branches of the Society of Equity, and the Farmers' Educational and Co-operative Union of America. About 1910 Co-operation began to re ceive recognition from the law makers. Since that time more than four-fifths of the states have enacted statutes defining co-operative business and authorizing the formation of societies or associations to function in conformity with Rochdale principles. In Colorado, South Dakota, Nebraska, Kansas, Illinois, Iowa, Kentucky, Ar kansas, and Oklahoma farmers' co-ope rative exchanges or wholesales with state-wide operating fields have been established and are being operated with varying degrees of success. Some of these institutions are federations of local co-operatives, others are financed by in dividual share subscriptions, and still others by a combination of the two methods. One of these state exchanges, the Job bing Association of the Kansas Farmers' Union, has entered the field of hay and grain marketing. It owns two seats on the Kansas City Board of Trade and one on the Kansas City Hay Exchange, and sells great quantities of hay and grain consigned to it by members of the Union and others in Kansas and adjoining CO-OPERATION 41 states. So far its services as a terminal marketing agency have been satisfactory and its business is expanding so rapidly that in volume of transactions it will soon equal or exceed the business of any house on that market. During the past five seasons this concern has handled binder twine in such quantities that it has been able to fix the price paid for that commodity by Kansas dealers and consumers. Conservatively estimated, the Jobbing Association has saved Kan sas Wheat Growers at least $3,000,000 on twine since it began to handle that commodity in a large way. In this discussion of farmers' Roch dale societies, no attempt has been made to distinguish between marketing and purchasing organizations. Almost univerEally the same corpora tion serves its members in both ways. An elevator, organized primarily as a local outlet for the community grain pro duction, usually acts as a distributing agency for farm supplies, especially commodities that can be handled in car lots and delivered to the member's wagon or truck through the car door or from a warehouse. Feed, coal, salt, binder twice, farm implements and fer tilizers are easily and profitably handled through an elevator association. A farmers' co-operative store generally serves its members as a produce station, and markets their eggs, poultry, butter, cream, and garden and orchard pro ducts. Something like forty years ago the Farmers of Denmark laid enduring foundations for a system for the co-ope rative marketing of their products. Their associations were voluntarily formed, but once having joined with his fellow-producers the member entered into a legally enforceable contract to sell all his products through his own agency and nowhere else. California citrus fruit growers were the first American producers to adopt the Danish system to their own needs. During the past twenty-five years they have built up a great and successful business known throughout the world for its efficiency and its fine results. The history and the business methods of the California Fruit Growers' Exchange, which handles an annual volume of sales aggregating about $80,000,000, may be studied with profit by all who are inter ested in the co-operative marketing of farm products. In time this movement, now generally known as commodity marketing, spread to other states and its principles and methods were applied to the selling of many other agricultural products. The Farmers' Union of Washington was the first body of wheat growers to undertake the practice of the pooling system in selling a great staple in universal de mand. The movement initiated by Washington Union farmers resulted in the organization of wheat growers' asso ciations in their own state and in Ore gon, Idaho, and Montana. The four state units have now been federated into the Northwest Wheat Growers' Associa tion, with its principal offices in Port land, Oregon, through which it now sells about 40,000,000 bushels of wheat a year. Similar groups of growers have been organized in North Dakota, Nebraska, Colorado, Kansas, Oklahoma, and Texas. The Oklahoma and Texas associations have already federated into the South west Wheat Growers' Associated, and are selling this year's grain through their own agency at Oklahoma City. In time it is planned to complete the wheat marketing structure by setting up the Northern Wheat Growers' Associated to handle the grain that goes to market through Duluth and the Twin Cities and the Central Wheat Growers' Associated, made up of the state units in the terri tory tributary to the Kansas City market. The various wheat growers' groups, now functioning, control the marketing of nearly 100,000,000 bushels of grain annually. It is the hope of the co-ope rators who are interested in this project that it may eventually handle more than half the wheat produced in the United States. Cotton growers soon followed the lead of the wheat farmers. They began their movement in 1921 by organizing the Oklahoma Co-operative Cotton Market ing Association, to which about 35,000 growers pledged more than 450.000 bales of cotton before the enterprise was in- 42 CO-OPERATION corporated. Since then nearly all the southern states have perfected units for co-operatively marketing cotton, and the state units, with few exceptions, have already federated themselves into the American Co-operative Cotton Exchange. The producers of burley tobacco in Kentucky and adjacent states have or ganized the Burley Growers' Co-opera tive Association, in which about 50,000 farmers have contracted to deliver near ly 95 per cent of the entire production of that kind of tobacco. In Virginia and North Carolina an equally strong Bright Tobacco Co-operative Marketing Association is made up of nearly 60,000 farmers who have contracted to deliver about 85 per cent of total annual pro duction of that staple to be sold through their own agency. An organization of the producers of dark tobacco in Ken tucky and Tennessee is now being formed and will soon be ready for in corporation and active business. This will practically complete the pooling of American tobacco and is certain to re sult in better prices for the growers. Scores of other commodities, such as melons, cantaloupes, strawberries, peach es, apples, sweet potatoes, peanuts, cane syrup, cranberries, and prunes have been organized under the Danish system into associations, some of which are quite large, while others are so small that they include only the product of a single community. Men who have kept in close touch with the development of this pro gram estimate tha-t there are now about 400 commodity marketing associations in the United States, that such marketing organizations have nearly a half a mil lion members, and that they annually sell more than three billions of dollars' worth of farm products. The great beef cattle producers of the western ranges never had any marketing problems. As their animals fattened on the rich grasses of the plains and ma tured for market, they were rounded up and those ready for the butcher were shipped to the great live stock consign ment houses on the Missouri river and at Chicago. The profits from open- range cattle were so great that many princely fortunes were made in that in dustry. The rich breeders and feeders of the corn-belt states were in a position al most as advantageous as that enjoyed by the ranchers of the plains. They bred their own feeders or bought them in the yards of the middle western markets. They dealt only in car lots and made their shipments of fat beef cattle di rectly to the commission houses in the great terminal markets. With the small farmers scattered throughout a dozen states of the Missis sippi and Missouri valleys the situation was entirely different. Seldom matur ing enough cattle or hogs for a car-lot shipment, they were compelled for a long time to sell their few animals to local speculators. In the course of time someone, im pelled by the growing spirit of Co-ope ration, evolved the local live stock pro ducers' co-operative shipping associa tion. A number of small farmers formed a loose organization without incorpora tion or capital investment. They adopted a simple set of rules or by-laws, elected a president and a secretary, and selected one of their members to act as manager or shipping agent. Whenever a number of association farmers had enough fat stock—cattle, hogs, or sheep —to load a car, the animals were assem bled at the local railroad yards and consigned to the terminal market in charge of the shipping agent. The pro ceeds of such co-operative shipments were brought back to the country and each producer was paid just what his animals were sold for on the market, less only the absolutely necessary ex penses of handling the business. The first producers' live stock com mission company was placed in the yards of South St. Paul by the Equity Co operative Exchange. This co-operative movement was so well supported by shipping associations in the surrounding territory that a second house was opened in the Chicago yards. The Farmers' Union of Nebraska was the second group of producers to enter the terminal live stock markets. This organization opened its first producers' commission house at Omaha in April, 1917. This concern grew slowly at first but within a year was more than paying CO-OPEEATION 43 its way, and at this time leads all its competitors in the Omaha yards in the volume of its sales. Other houses were soon after established at Sioux City, Iowa, and at St. Joseph, Mo. These have been extraordinarily successful from the beginning. The Kansas Farmers' Union, following the leadership of Nebraska, opened its own house in Kansas City, Mo., in October of 1918, an enterprise in which it has since been joined by the Missouri Farmers' Association. The Colorado Farmers' Union entered the live stock commission business in Denver a little later. All these Farmers' Union houses have succeeded. In the latter part of 1921 the Missouri Farmers' Association, a strong agricul tural organization, placed a live stock commission company in the national stock yards in East St. Louis, Illinois. The Farmers' Union and other self-help farmers' organizations of Illinois, Iowa, Arkansas, and Missouri co-operated in the support of this house, which soon took first place on .that market. During the early part of 1922 the equity houses at St. Paul and Chicago were reorgan ized as Farmers' Union concerns and under a new management, with no cap ital, and are now doing a large business with such satisfactory results that they will probably be able to distribute sub stantial shippers' dividends at the end of this year. The nine co-operative commission houses for marketing live stock that have been established by the Farmers' Union, the American Society of Equity, and the Missouri Farmers' Association make up a most remarkable group of produc ers' selling agencies. In the aggregate they handle live stock sales amounting to more than $150,000,000 annually, and they have scarcely begun to realize the possibilities of the field that they oc cupy. For the most part these concerns are true non-profit co-operatives, operat ing without any capital investment. One or two are incorporated and cap italized in nominal amounts, just suffi cient to give them a legal status. The three houses conducted by the Nebraska Farmers' Union at Omaha, Sioux City, and St. Joseph, constitute the greatest single co-operative marketing association in the world, and in savings on commis sions alone have returned more than half a million dollars to their patrons. The dairy farmers, especially of the northern states, have learned how to co operate. Thousands of farmer-owned creameries, cheese factories, conden- saries, and other plants are converting whole milk and cream into the finished materials ready for consumption. The cane syrup producers of south Georgia have just completed a co-opera tive organization to standardize their output, guarantee its quality, advertise its merits, and put it on the markets under their own trademark and label. Some progress has been made by other groups. There are many co-operative flour mills scattered through the wheat belt. There should be hundreds of such enterprises enabling farmers to profit from the great spread in price between grain in the elevator and white flour in the grocer's shop. Here is a field for co-operative effort that is much more promising than is found in the operation of marketing agencies that merely sell raw materials to the men who make fortunes by their conversion and distribution. There is no good reason why flour, bacon, butter, cheese, condensed milk, cane and sor ghum syrup, preserved fruits and vege tables should not be prepared for con sumption by co-operative organizations. Insurance is a service that requires no capital investment. This is a principle that is overlooked or ignored by great numbers of enormously rich, powerful, and aggressive joint-stock companies. The man who buys an insurance policy should not be required to pay for any thing but protection. If his premiums include provisions for dividends on in vested capital, for the accumulation of unnecessary reserves, for the payment of big commissions to agents, and for princely salaries for administrative offi cers, he is charged for something that he does not need and that he cannot use. The farmers of the United States have paid out countless millions of dollars for dividends on capital invested in the shares of insurance companies, for the building up of reserves useless to them but immensely serviceable to the inter- 44 CO-OPERATION ests that prosper on the profits of agri culture, for the construction of great office buildings to which they have no title, and for other purposes in no way related to the protection of their prop erty or the security of their dependents. They have learned the folly of such ex travagant expenditures and are now conducting many mutual insurance companies to which they make payments only for the services rendered. Many hundreds of local farmers' mu tual insurance companies are now func tioning in every part of the country. For the most part these mutual protec tive associations operate on the assess ment plan, supplemented by a small membership fee sufficient to cover the cost of securing and issuing the policy. These co-operative companies protect farm property against loss by fire, light ning, and tornadoes, and many of them include live stock in their lists of insur- able property. In many of the Farmers' Union states there has been a further develop ment of the co-operative insurance that has resulted in the organization of state wide companies operating without cap ital investment but collecting regular premiums in advance in cash or notes. Colorado, Nebraska and Kansas have successful associations of this type. The Kansas Farmers' Union Mutual Insur ance Company has about $40,000,000 risks on its books. It has paid back about a half a million dollars of savings to its members, and has established a reserve which, together with the reserve of the Kansas Farmers' Union Mutual Hail Insurance Association, now amounts to nearly $500,000, of which about $175,- 000 is invested in a headquarters office building that yields a return of 8 per cent to the policyholders of the two companies who own this building and all the other assets of the two companies. The Grange has organized its own in surance companies and in many states is saving much money for its members. The American Society of Equity has also a number of co-operative fire insur ance companies and is responsible for at least one rapidly growing life insurance association. In Iowa, the Farmers' Union is now engaged in the organiza tion of a life insurance company for the purpose of serving its membership at cost, with every prospect for success as soon as the perfected plans are presented. Several groups of farmers' co-operative business organizations are planning, to establish mutual indemnity companies to protect themselves against the dishonesty of employees. Modern commercial customs and prac tices developed banks as the servants of business. The profits of banking are so enormous and banking resources are in creasing so rapidly that it will not be long until the institutions that were es tablished for service will be in absolute control of commerce as masters. Co operative business activities—marketing, manufacturing and distribution—require the use of constantly increasing amounts of capital. The success of such enter prises must inevitably reduce the profits and restrict the operations of the older commercial organizations which have al ways been the bankers' most desirable and profitable clients. Many farmers believe that agriculture can never prosper until a system of local co-operative banks, organized and con ducted for Co-operation with other farmer-owned business enterprises, is established. There is an almost unlim ited field for co-operative banks. Poor as they are, the farmers are financially able to enter this field. The only real obstacle in the way is the will to do it. Unfortunately there are several mil lion farmers in our country who would not be greatly assisted by co-operative banks. They never have funds for de posit, nor credit through which they can. secure loans. No banking system, co operative or otherwise, can help these men. They are the predestined victims of the advance merchant and the usurer. These poor farmers, against whom all the doors of opportunity appear to be closed, must be reached and helped in some other way. Local credit unions for mobilizing and utilizing the small financial resources of rural communities made up of share croppers, tenant farmers, and mort gaged land owners, offer some hope of relief. Such institutions have worked well in several European countries. CO-OPERATION 45 There should be a way to adapt them to American conditions. North Carolina, Massachusetts, Ohio, Texas, and prob ably a few other states, have passed en abling laws authorizing the organization of credit unions, and in some places a hopeful start has been made. This report is already long, but not long enough to do more than sketch an outline of the field of agricultural Co operation, and indicate in the briefest possible way the helpful things that have already been done. We believe that the various sporadic and fragmen tary co-operative activities of agricul tural America are gradually crystalliz ing into a great national co-operative system of which most of the existing en terprises are to be integral and essential units. We are certain that there is urgent need for reliable information concerning the history, principles, aims, and results of this great Movement. Co-operative business enterprises are organized and conducted to make money or to save money for their members. From their nature they can never be active or ef fective educational agencies for the col lection and dissemination of information among the millions of farmers who still have no conception of the possibilities of Co-operation. We urge that all who have the reha bilitation and reconstruction of agricul ture at heart give every encouragement and assistance to voluntary farmers' so cieties like the Grange, the Farmers' Union, the Society of Equity, and kin dred associations. It is only through the intelligent activity of such organiza tions that the co-operative business of the farmers can be successfully estab lished and conducted in the face of the growing opposition of special privilege and grasping monopoly. CONTRIBUTED ARTICLES FARMER CO-OPERATION AND FOOD PRICES By CAROLINE B. SHERMAN (Assistant in Market Information, U. S. Department of Agriculture) Will farmer co-operation increase food prices unduly! This is a frequent ques tion met among consumers on the mar kets everywhere. Many arguments are advanced on either side. Are there any facts? It has been demonstrated again and again that practically all farm products can be grown, with due care and devel opment, in various localities the country over, if demand and prices justify it. Cotton, long considered a strictly one- region crop, is now grown in commercial shipping quantites in Arizona and Cali fornia, and is grown experimentally in Utah and other states to the north. Tobacco, another great southern crop, is grown successfully in large quantities along the Connecticut Valley and in Wisconsin. Cranberries, usually con sidered a highly localized crop, are grown extensively in Massachusetts, New Jersey, and Wisconsin. In many other regions successful bogs could be developed if the demand justified the expense of development. And this is a large country. The Southern States are as large as all France, California is as large as Italy. Production possibilities are immense—if prices justify development. Most agricultural food products are perishable and cannot be held over from year to year as can manufactured pro1 ducts. The carry-over of any crop has a marked influence on the price of the new crop. As the season for early pota toes from Hastings, Florida, approaches, dealers make especial effort to dispose of the old-crop potatoes, knowing that they will be in little demand when new potatoes are available. Prices of north ern-grown onions, stored and sold through the winter, drop rapidly as the 46 CO-OPERATION new crop of Bermuda onions from Texas begins to come on the market. In their turn, Bermuda onion prices drop later as the new crop of northern-grown onions are harvested, for Bermuda onions must be used rather promptly, and only northern-grown onions are bought for storage and deferred sale. As a general proposition, all stored foods are urged on the market as the season of fresh goods of the same kind approaches. Continued high price means competi tion. One year, when his chief crops failed, a Virginia farmer fell back on his beet crop. More or less accidentally he had planted an unusual number that year, intending to feed them on the farm. He sent a wagonload to the Washington market and found that the scarcity of fruits and vegetables had made a demand for them. Twice a week, thereafter, during the season, he sent in a wagonload of beets, and they brought fair prices. The next year, a year of good crops, every local farmer brought beets to the Washington market, which was flooded with beets that no one wanted at any price. Prices of California raisins have been high for the past several years. Various reasons are given. Some say there has been an attempt to control prices through the raisin associations, others say it is because of the great demand for raisins. Be that as it may, the raisin industry faces disaster to-day because the high prices for several years have so stimu lated planting that there is now a greatly increased production of raisins that must be worked off at such prices as can be found for them. The elementary factors on which agri cultural production depends cannot be controlled. Drought, floods, frost, hail, hot winds, storms, plant diseases, and insect pests are all among the factors that, as yet, are admittedly not con trolled by man. Methods of evasion, amelioration, prevention, may help, but statistics show that on the whole, as yet, they have not helped greatly. One-fourth of our great wheat crop has been destroyed, during the past ten years, by the hazards of pests and of weather. Drought is the most expensive enemy, all told. Often it accounts for as much damage as all of the other hazards combined. It has destroyed more than 16 per cent of our corn crop during the past decade. Damage to. our ten leading crops in the single year of 1918, through weather and pests, reached a federally estimated value of more than three billions of dollars. No insurance company has yet found it profitable to write crop insurance. Some hail insurance has been written and some fire insurance on large stand ing ripe crops in the West, but only a few policies exist that cover general crop insurance. The people in this country come from widely diverse countries, climates, races. They speak widely differing languages. We have the Negro landowners in the South whose holdings exceed 16,000,000 of acres. Japanese growers thrive in the far West. In the single state of Minnesota are many towns in each of which a different language is spoken al most exclusively. Cokato, Minnesota, a prosperous agricultural community, is Scandanavian; Neu Ulm, another pro gressive rural section, is German; Red Lake Falls is French; Biborg is settled by the Dutch; Ghent is made up of Bel gians. In a trucking district in Colo rado, near Denver, the farmers are made up of Japs and Italians. An interpreter was necessary when they wished to work together recently in selling during a bad season. 'Rural co-operation has made great strides in the United States, but it is frequently against great handicaps of distance and difference in language, traditions, racial descent, and standards of living. Whatever the theories or arguments about monopoly and price control, through co-operative marketing associa tions these facts stand out boldly: (1) Most agricultural crops can be grown in various parts of this country if price conditions justify it. (2) This country is a tremendously large one, larger than many European countries combined. (3) High prices for any product CO-OPERATION 47 stimulate production of that product even under handicaps and at consider able expense. (4) Agricultural products are per ishable or semiperishable. (5) Our people represent several races, they speak many tongues, and they have widely differing histories, standards, and viewpoints, and (6) The great primary factors of agri cultural production are subject to no human control. SEEN HERE AND THERE By J. P. WARBASSE Co-operation Succeeds Where Poli tics Fail in Brownsville I attended the opening ceremonies of the Brownsville Co-operative Bakery in New York. Among those who par ticipated in the celebration were Abra ham I. Shiplacoff and Charles Solomon. Mr. Shiplacoff was a member of the legislature of New York for three terms. Before his election he had advocated and struggled for better conditions for the working people. When he became a member of the legislature of the state he introduced a bill which, among other things, provided an eight-hour day for bakers, prohibited underground bakeries, prohibited night work, and re quired that bread be produced under sanitary conditions. His efforts came to naught. His bill was jeered at and he was denounced. Bakers continued to be sweated to make big profits for their bosses and to die of tuberculosis. Mr. Solomon was elected by the work ing people to the legislature of New York State as their representative to promote the interests of the people and not the interests of privilege. But be cause Mr. Solomon was elected for that purpose and by people who wanted only simple social justice, and also because he knew and said that the war was a capitalists' war to win profits, he was not permitted to take his seat. His con stituents were thus denied representation in violation of the simplest constitutional rights. For all their efforts in the political field labor conditions remained un changed. Bakeries in New York con tinued to be dirty and located in dark and unwholesome cellars. The bakers suffered with tuberculosis. The long hours and unwholesome conditions de stroyed the lives of people who baked the bread and the lives of people who ate it. Over in Brownsville, Brooklyn, the political district of these men, the bak eries were especially bad. Five years ago a co-operative bakery was started. It kept down prices and stood for clean bread and union con ditions for bakers. Gradually the peo ple learned by experience how to run their own bakery. Then it grew. Now it has built a new model bakery build ing. The building is 110 x 100 feet. All of the baking is above ground on the first floor. The big baking room is light and airy. The machinery is up to date. The health of the workers will be well protected; and that means the health of the consumers, too. The five white-tiled ovens will turn out $10,000 worth of bread a week. Four motor trucks will deliver the bread to the people. Each loaf bears, side by side, the co-operative and the union label. Now, here is this same Shiplacoff ap pointed Educational Director of this so ciety of 1,300 families. He will teach the people how to understand and to enlarge the co-operative idea which they have set going in their bakery. Behind all of this is a lesson of pro found importance. What Shiplacoff and all the combined forces of Labor have worked for, through the dubious agency of political government, and for which they have spent untold energy, time, and money to attain, they now have achieved by just going and doing it. The natural way, the scientific way, and the permanent way for the people- 48 CO-OPEEATION to have clean bakeries, with an eight- hour day and healthful conditions for the workers, is just to go and have it. Asking the political government to give it to them is a .roundabout and uncer tain method; and should they get some thing, the next bunch of politicians that comes in may take it away from them. In this co-operative bakery every one of the better conditions for Labor for which Brownsville has vainly struggled through political methods is in force. They are not made a joke of; they are not laughed at; they are getting civil ized consideration. It is well that this bakery gives the •workers better conditions and better wages, and the people better bread and bread at a lower price; but what is still more important, it is teaching them the value of direct action. It is teaching them that they can do things for them selves; that through co-operation they can meet their own needs themselves. Nothing should stop these people from going on to do the same thing with their milk supply, groceries, coal, clothing, housing, banking, insurance, recrea tions, and all the things they need. It was the injustices, the extortion, and the filth of the profit system, and the complications and uncertainties of poli tics, that drove them to do what they have with bread; it will be these same conditions that will compel them to take the next steps. NEWS AND COMMENT TEACHING CO-OPERATION TO THE U. S. SENATE Smith W. Brookhart is one of the new Senators elected by the farmers and in- •dustrial workers of Iowa. Mr. Brook- hart is not only a lawyer, an ex-officer in the United States Army, one of the •crack rifle shots of the country, and a farmer, but he is a co-operator as well. He was invited to speak at the Council •of Foreign Relations, on January 26th, in New York City, on the attitude of the farmers, the laborers, and the sol diers toward our foreign affairs. He arrived in New York in mid-afternoon, spent all his available time at the League House visiting with memberr. of the Executive Board of The Co-operative League, and then went to the dinner of the Council of Foreign Relations. There is space here for only brief ex tracts from the address Senator Brook- hart made there: "Perhaps not exceeding 40 per cent of our people can be rated as farmers. They have a capital investment of about eighty billion dol lars, which is perhaps less than one-third of the national wealth and therefore less than a per capital proportion without regard to in debtedness. Farming is also a business and a work-shop. The farmer is a laborer and he ought to be a business man. Economic con ditions have intensified his labor and largely destroyed his functions as a business man. He has no voice in the price he will receive for his products. He has no voice in the price he will pay for his equipment. He has no power to add in his cost of production, he can charge no profit, and he toils without the assurance of any wage. . . He finds about 35 per cent of our people are laborers with far less proportion of capital than himself and about 15 per cent of brain workers also with a less proportion. The other 10 per cent, or there abouts, he rates as middlemen, capitalists and profiteers. He finds this small class in pos session of more than half of the national wealth. He finds it is in control of most of the machinery of production, of processing, of credit, of transportation, and of marketing. He finds its influence powerful in every depart ment of our government and its rewards vastly more than a majority of our net national in come. He wonders, he figures, he thinks, he decides, he acts. "The farmer is a producer, but he is also greatest of the consumers of the products of labor. Labor is a producer, but it is also greatest consumer of the products of the farm. Out of the dollar which the laboring man pays for the products of the farm, the farmer gets 37 cents. That is the first half of the story. When reversed, the laboring man claims that out of the dollar which the farmer pays for the products of labor the laboring man gets less than 35 cents. The cost of processing and distribution is 63 per cent one way and 65 per cent the other. . . . Labor, therefore, refuses to fight the farmer all fore noon in an effort to further reduce the little 37 per cent the farmer is now getting, and the farmer refuses to fight labor in the afternoon to reduce the 35 per cent which labor is- get ting. Both have designated the middlemen as CO-OPERATION 49 their common economic enemy. They point to the unconscionable profits of oil, steel and coal, and to their stupendous stock dividends. . . . The farmer ships his grain or live stock, and after paying his freight does not have enough left to pay his taxes. The wages of labor are gone long before its families are properly fed, clothed, housed and educated. They denounce the whole scheme of princely salaries and profits taken by economic power as taxation without representation. They look for a remedy; yes, and they have found it. "This remedy was invented by labor. It was twenty-eight poor flannel weavers in 1843 who saved their pennies for a year and a half, until with a pound each, or $140, they started the little co-operative store at Rochdale, England." (The next five pages of Senator Brookhart's manuscript are devoted to a statement of the fundamental principles of Rochdale co-opera tion and a brief history and survey of the movement in Europe. He also sketches the Danish farmers' movement and the rapid de velopment of the farmers' marketing move ment in the United States.) "At this moment practically every farmer is a believer in economic co-operation of pro ducer and consumer as the final and complete solution of our staggering difficulties. In this he is joined by practically every laboring man and by a vast majority of the soldiers. This union of thought manifested itself in the last election, where these three great blocs turned out many of their enemies and filled their places with friends of this great co-operative progress. . . . "All of these have reached one conclusion as to international statesmanship. This can be described by one word, and that word is 'Failure.' They see this statesmanship guided by economic power and economic greed. They see it building navies and armies to control the land and rule the sea. They see its in struments of destruction in the air and uuder the ocean. They see it in the grip of World War organized for the murder of the human race. They see its wake of revolution and pestilence and death. They cry out with one voice 'Failure'. "They are distrustful of all the old reme dies. A League of Nations is proposed. They see most of its fourteen points disregarded. They attribute this to financial considerations and they oppose it. It is proposed to cancel "the war debt. They see in this a plan of the " international bankers to make more easy the collection of their private debts, and this they also oppose. • Then they hark back to first principles for a remedy—to the weavers of Rochdale. They ask, why not an international co-operative exchange agency, with co-opera tive associations from all countries doing business with us, as members. . . . It is not a dream or theory. It is the oldest, best developed, and most successful business system in the world. It is the Sermon on the Mount in business. . . ." Since this time Senator Brookhart has been fighting day and night to get legislation before the Senate which will enable the farmers and workers of the country to organize genuine co-operative banks. He says that the only people in the way of this legislation are those who comprise "the Non-Partisan League of Wall Street." On February 2d Senator Brookhart was derided by Senator Lenroot for ad vocating "class legislation." "And what class would be prevented from joining the (co-operative) associa tion under the Rochdale system f" asked Senator Brookhart. "That class in which liberty lives," said Mr. Lenroot, with slow emphasis. Mr. Brookhart said that the need for an elementary school in the Senate was becoming more and more apparent; and that even though the Senator from Wis consin (Lenroot) did not know what a co-operative association is, the people of Wisconsin would be glad to instruct him when he returned home. Senator Lenroot charged that Mr. Brookhart's plan for Co-operation was "like that of the Russian Reds." Mr. Brookhart has not yet won the support he wants for his banking legis lation, but he is fighting for it as hard as ever. FORGING AHEAD AT VILLA GROVE J. W. Snider, the Secretary of the Society at Villa Grove, Illinois, writes of the progress being made in that com munity. The figures for the last quarter of 1922 look so good that we went to our files and got out the reports for the other three quarters also, and did some figuring. The Villa Grove Society has done a business in 1922 of $143,071.07, making a gross profit of $28,009.29, or 19i/2 per cent. The net profit was 6 per cent for the year, or 9y2 per cent of sales to members only; $2,176.34 went to regular reserve. The members received $5,- 763.59, or something more than 6 per cent on their purchases. Their share capital is $31,650. 50 CO-OPERATION In spite of the shopmen's strike of the last six months, the business during the final quarter was the best in the history of the society, and they were able to pay a 6 per cent return to members and put another 6 per cent into the reserve. Mr. Snider says: "The rail strike is still on here and it has been a heavy load, hut we have carried it BO far. We are in hopes that the shop crafts will get a favorahle settlement soon, as it will put a large sum of money in our hands in the way of share capital, as many of the strikers had their eyes opened since July 1st. We expect a large increase in membership from them, as well as from the Transportation Brotherhoods. Co-operative stores can be a great help in time of strikes if they are soundly financed. But they must be well financed before the strike is called, as afterward will be too late. The strikers of Villa Grove know that only too well, some of them to their deep regret, as some who were not members of this Society were cast off by private-owned stores and forced to ask for relief from charitable organizations." CONSUMERS' LOYALTY IN MINNEAPOLIS The loyalty of the employees of the Franklin Co-operative Creamery is be yond question. Here is a splendid ex ample of the loyal spirit of the con sumer-members of the Co-operative Creamery in Minneapolis, which has made their business grow until they now supply 30,000 families with $1,700,000 worth of dairy products annually. The directors in order to experiment with a new way of increasing the business, sent out a letter to the 6,000 stockholders, urging them to report on a certain Sun day morning, and to go out to solicit customers for the new plant which had been opened up. The result was a big surprise. Half an hour before the ap pointed time, a large number of members were on hand, and hundreds kept com ing all through the day. These loyal members drummed up so many new cus tomers as to swamp the office. Half a dozen men had to work far into the night to route the new customers, and al though the dairy had taken in an extra supply of milk, they ran short the first day. Twenty-five new wagons which •were put on at the new plant were kept busy on their regular routes and with special trips. The results of this appeal for new trade to the membership far ex ceeded the brightest hopes of the directors. This is the spirit which is making the co-operative creamery a thorn in the side of the private dealers, who are now desperately engaged in a price-cutting campaign against the Franklin Cream ery. It is the spirit that wins. MEETING OF INTERNATIONAL ALLIANCE EXECUTIVE The first International Co-operative Alliance meetings to be held in Germany since the war, took place from Septem ber 30th to October 3d. The Executive Committee of the I. C. A. and the com mittees on International Co-operative Trading, and Banking met at Essen to consider matters of prime interest. It was decided to establish an Inter national Co-operators' Day, to be cele brated by Co-operators on the first Satur day in July. The Executive Committee unani mously adopted resolutions in regard to the grave menace of war in the Near East, reiterating "the unshakable will for peace which animates the millions of Co-operators throughout the world." A communication was received from the Secretary of the Italian Co-operative Union, vividly depicting the brutality and violence of the Fascisti towards co operative societies, hundreds of which have been destroyed by fire. The Committee voted to be represented in the forthcoming World Peace Con gress held by the International Federa tion of Trade Unions. Reports were received from co-opera tive delegations to Russia and Georgia. The Committee on International Co operative Wholesaling announced that the English C. W. S. had made satis factory arrangements with the co-oper ators of Belgium and of New Zealand. The New Zealand Co-operative Federa tion is to send its whole production of meat, butter and cheese to the English C. W. S. CO-OPERATION 51 INTERNATIONAL LABOR CON FERENCE ENDORSES CO-OP ERATION The Fourth International Labor Con ference which met in Geneva, Switzer land, in November, under the auspices of the International Labor Office of the League of Nations, paid a tribute to the Co-operative Movement by passing the following resolution: "The co-operative organizations, by the increasingly numerous undertakings in commerce, industry and agriculture created by them both in European and non-European countries, form a factor in the economic life of the world which cannot be neglected. In consequence it should be possible for them to give their opinion directly on all questions of labor legislation affecting them to the same de gree as private enterprises. Moreover, the social and educational value of their practical work qualifies them to submit on labor questions the result of their experience.'' The International Labor Office was instructed to appoint representatives of co-operative societies at its next session in Geneva in January, 1923, in order that the co-operative viewpoint on labor problems might be represented. ACTIVITIES OF DISTRICT LEAGUES The Northern States' Co-operative League enters the first full calendar year of its existence with an important program of action, which was laid down at the Minneapolis convention last October. Perhaps the biggest task before the League this year will be the organizing of a day school for the training of co operative employees, in accordance with plans adopted at the Minneapolis con vention. The school will be held in Minneapolis in April and May. While the date of the opening of the school has at this writing not been definitely set, it is likely that the school will be opened April the 23d. The school will last for five weeks. The Executive Com mittee of the League is planning to en gage three instructors to teach at the school, and expects to get assistance from the local co-operative forces in arrang ing night lectures in connection with the school, so as to enable greater numbers of people interested in co-operation to get the benefit of this school. The Franklin Co-operative Creamery Association, which is a member of the League, is expected to furnish a hall for the use of the school, and it is also expected that these co-operators will furnish a considerable portion of the students. The phenomenal success of the Franklin Creamery has aroused en thusiasm among its employees, stock holders and friends as to the great pos sibilities of consumers' co-operation in this country, and has also aroused a keen desire to get better acquainted with the theories, principles, methods, and history of the co-operative movement. The school will be held in case an en rollment of at least fifteen students can be secured. It is considered certain that this number of students and probably even more will enroll. The membership of the Northern States' Co-operative League now con sists of 11 co-operative societies, 47 in dividual members, and one central labor body as fraternal member. A circular has been sent to all these asking them to renew their membership in the League for the year 1923. The Executive Board of the League is considering the publication of a pamphlet entitled "The Administration and Management of Co-operative So cieties" in collaboration with The Co operative League. The Executive Board also plans to send the secretary of the League on a speaking tour, either in February or in March, to certain societies in Northern Minnesota and Wisconsin. The trip will probably be financed by the League and the Central Exchange together. The League expects to publish reports 52 CO-OPERATION on its activities in every other issue of CO-OPERATION. All those interested in the doings and the progress of the League should watch this page. AN ANNOUNCEMENT TO ALL THOSE INTERESTED IN THE CO-OPERATIVE TRAINING SCHOOL OF THE NORTHERN STATE CO-OPERATIVE LEAGUE All persons above eighteen years of age, who are looking for positions in the co-operative movement in the fu ture, or who are already employed by co-operative societies, but who would like to get better acquainted with the- theories, principles, history, and meth ods of the co-operative movement, and also improve their knowledge of book keeping, etc., are hereby requested to communicate as early as possible with the undersigned, secretary of the League, for additional information about the training school to be organ ized by the Northern States' Co-opera tive League in Minneapolis in the com ing spring. S. ALANNE, Sec'y Northern States' Co-operative League, .P. O. Box 147, Superior, Wis. FROM THE LEAGUE HEADQUARTERS CHAIN STORE ATROCITIES . . . . "A curious system of bonus to managers is in vogue in this organiza tion. Every manager who at the end of the month shows an actual inventory in excess of his book balance gets a bonus of one half of 1 per cent of his sales for the month. The basis is not volume of busi ness but store managing efficiency. The manager who constantly earns this bonus has his pay raised."—(Extract from de scription of a large Chain Store Com pany appearing in the most recent book on Chain Store Management.) Briggs manages a store for one of the large Eastern grocery chains. Three or four times a week shipments of eggs are unloaded at his store. Briggs has instructions to sort the eggs into two lots as he takes them from the crates. The largest and whitest eggs go into the basket labelled "Strictly Fresh Country Eggs" and are sold at the higher price. The smallest eggs, the brown ones, or those cracked or otherwise doubtful, are labelled "New Laid Eggs" and sold at a price nine cents lower. Briggs and his clerks have had enough experience with these to feel very con fident that they are all storage eggs. But his instructions are to sort them 50-50. He knows he is charged for them at headquarters in that proportion. Usually he is able to get from 60 to 70 per cent into the "Strictly Fresh" basket by a slight stretch of his imagination, and the doubtful eggs in this lot are sold to the children among his customers. Coffee is a big seller in Briggs' store. In addition to the different package coffees given him by the company, he carries two bulk cof fees, selling at 27 cents and 33 cents. To be sure that he is never losing money on his coffee, Briggs throws a few scoops full of the- 25-cent brand into the other bin every morn ing and mixes them well. But Briggs has another program which appeals to his sporting instincts even more. '' Royal Family'' coffee comes in 43-cent tins, unground. Briggs sells several dozen of these each week. Two little boys in the neighborhood regularly bring in two or three empty "Royal Family" tins every week or ten days, and Briggs gives them a small bag of candy in exchange. After clos ing time he fills these cans with a mixture of his best bulk coffee beans and beans from other "Royal Family" cans. The seal on these tins is not conspicuous. Most of his customers want their coffee opened and ground before they take it home. When a patron asks for "Royal Family, ground," Briggs whisks one of these broken cans from the shelf, swiftly runs a knife under and around the cover (whose seal has already been broken), and pours the coffee into the mill. Briggs is one of the managers who stands high in the estimation of his company. A brisk trade in coffee, eggs, and two or three other articles enables him to roll up quite a cash surplus every month. At Christmas he was awarded a bonus "For Service meritori ous; for Alertness, Sobriety, Neatness, Scrup ulous Honesty; for Readiness to Sacrifice extra hours in the Interest of our great Business. He has the Love of his Fellow Workers in the ———— Grocery Company, and the Confi dence and Esteem of a Great Host of Men, Women, and Children to whose Needs he Ministers." CO-OPERATION A NEW LEAGUE PUBLICATION The Report of the Proceedings of the Third Co-operative Congress held at Chicago in October is now published and ready for distribution. This Report is 154 pages in length and contains in full all the speeches, reports of commit tees, and such other business as came before this Congress of the Consumers Co-operatives of the United States. Some of the reports contained in this little volume are highly valuable, for they present the only information and statistics so far assembled by The League on certain kinds of co-operative enter prises. Among these are the following: "Co-operative and Labor Banks," "Co-op erative Restaurants," "Co-operative Distri bution of Coal," "Co-operative Distribution of Milk," "Promotion of Co-operation by Trade Unions," "Agricultural Co-operation," "Intercollegiate Co-operative Societies," '' Co-operative Laundries," " Co-operative Bakeries." Other reports, although dealing with subjects already handled by The League in its pamphlets, give the most complete and up-to-date information in the mat ter under discussion. Among these are r "Co-operative Education," "Women's Guilds," "Co-operative Housing," "Organi zation of District Leagues," "Taxation of Co operative Societies," "Credit Unions,"" "Meeting Competition," "Store Management Problems," "How to Avoid Credit Trading," "Problems of Wholesaling," "Spurious Co operatives. '' Other interesting features in the book let are: the letters of greetings from dozens of foreign Leagues and Unions and fraternal bodies; lists of delegates, fraternal delegates, visitors, and socie ties represented at the Congress, etc. THE CORRESPONDENCE FILE NATIONALIZATION OR CO-OPERATION? I am sorry to see in Co-operation what ap pears to be an attack on public ownership of natural monopolies. It is true that many of the public ownership schemes are put out to serve the interests of particular groups of pro ducers, but public ownership is broader than than that. It rests on the principle that natural resources and strategic positions in economic organization belong equally to all, the world over, and nationalization is offered because the nation is now the largest human unit. It is a makeshift, rather poor in the case of German potash and Chilean nitrate, but the best we can do until the world is one nation. But what can be monopolized ought not to be trusted to any part of the community, even a consumers' co-operative because that owner ship will inevitably make inequality and in justice. The government is the only organiza tion that represents all the people, and is the logical owner of monopolies. Operation is a different matter. That can be done under government apportionment and regulation. It is not fair to represent our government as hopelessly under the power of private finance. It is, in fact, the main bulwark of the people against the power of riches. It is influenced by riches in proportion to the in terest of private owners in monopolies. Pub lic ownership of such great monopolies as the railroads and the mines will reduce a large part of the financial world from the position of stockholders, active pillagers of the public wealth, interested in every change in public policy, to that of bondholders, idle parasites, whose income is the same whatever the govern ment does, and who therefore will spend no money in corrupting the government. The more government grows the less power private cap ital will have, and the more interest the peo ple will take in making the governmental administration honest and efficient. The people can control the administration, and will, when they are interested enough. The more people work for the government, the more the treatment of government employees will be a public affair. The chief enemy of co-operation is the pri vate ownership of monopolies, particularly transportation. Public ownership will make the growth of co-operation easier. It will pave the way to the taking over by consumers' organizations of things which they are now too small to handle. In time the government itself will be entirely a consumers' organiza tion, and as other governments follow suit, the federation of the world will grow. ARCHIBALD CRAIG, Jersey City, N. J. 54 CO-OPERATION CO-OPERATION IN DEVASTATED GERMANY I acknowledge thankfully the receipt of your kind letter of 13 Jan. and have gladly taken note of its contents. We are happy that you have given our appeal such publicity in America. The forceful occupation of the Ruhr region by the Belgian and French troops has taken place because in the enormous deliveries of coal and wood there has been some slight ar rears. It is quite natural from the commer cial standpoint that there should be some little arrearage in the wholesale deliveries of these commodities. But this arrearage would not have occurred if France had not rigorously rejected the deliveries which were offered and laid claim to considerable cost of time. As a result, final delays occurred which, even with the best of intentions, made it impossible to make deliveries on time. Since France and Belgium used this pretext to invade the Ruhr, it is clear that they had long intended to take over the administration of (Germany. The old German military party, which I otherwise in no sense would defend, is in this case without any influence upon the matter whatever. You hope as we do that passive resistance will win the victory. But such passive re sistance means for the great mass of. our people hunger, misery, and unspeakable suffer ing. When hunger incites the stomach to rebellion, every reasonable consideration is lost, and then there arises on each side the possibilities of violent outbreaks of despair. The situation, therefore, is much more serious than can easily be understood. Germany is not in condition to feed the hungry masses with its own products; it has not grain nor the money with which to buy grain. If the hungry masses cannot be provided for in an extensive manner the whole world will be shaken by the most dreadful experiences. With Co-operative Greetings. For the Directors, H. KAUFMAN. WITH THE FARMER CO-OPERATORS One of the actions of our recent state con vention of The Farmers' Union gave me en couragement. A long resolution adopted by a group of rather visionary farm leaders in a meeting in Kansas City was read to our con vention for adoption or rejection. It advocated the appointment of a government commission to stabilize the prices of farm products on a parity with other products such as farmers have to buy. The convention turned it down cold without a moment's hesitation. Our convention adopted no government- ownership stuff—not even for government ownership of the railroads. Of course, there were demands for all kinds of legislation to alleviate and cure, some of them very ill- considered, I think, but that is not so bad as asking the state to market our crops and dis tribute goods for us. ... In your letter you mention a drive that is being made this year to secure the enactment of credit-union legislation in the different states. We have a credit union law in Ne braska, enacted toy the legislature of 1919, which is patterned after the North Carolina. However, the banking interests had sufficient influence in the state senate to knock out the provision for deposits—the heart of the whole measure. And that is the way the law stands now. The little chap we had for governor then was elected on a platform promising rural credit legislation. In the next campaign, when he was up for re-election, he went up and down the state "pointing with pride" to the great credit union law which he had placed on the statute books. Even the United States Department of Agriculture has been fooled in regard to our law, and lists Nebraska as one of the states having credit union legislation. L. S. HERRON, Omaha, Neb. A CO-OPERATIVE MESSAGE FROM FLORIDA I want to express my appreciation again in regards to the valuable publication Co- OPEBATION, not only from the principle in which it is edited but the large type in which it is printed, which makes it more of a pleasure to read, and also the booklet form in which it is made. I hope that these two latter prin ciples will never be changed, even if it becomes as newsy as the "English Co-operative News." There is nothing in any issue which I pass by without reading. Whenever I have any copies of CO-OPEBATION which I no longer want, I usually either give them to someone who I think will be interested in it, or else place them in the Recreation Room of the Carpen ters' Union (of which I am a member), and being in the booklet form, more people read them. LAWRENCE A. YEATMAN, Miami, Florida. LOW PRICED BREAD FOR CO-OPERATORS I have been handling the advertising for the new bakery here the past year, and from a new beginning we have built up a good volume of business—selling over 1700 loaves of bread Saturday before New Year's, which is a big volume for winter selling in a town this size. This was made possible by steady, instruc tive, honest advertising of a quality bread at a low price. We specialized on bread—a fif teen-ounce loaf for five cents. This is selling close, but still left a net profit for the baker. AUG. R. PRINZ, Goodhue County Co-operative Co., Red Wing, Minn. CO-OPERATION PUBLICATIONS of THE CO-OPERATIVE LEAGUE HISTORICAL Per Copy Per 100 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 39. Consumers' Co-operative Societies in N. Y. State, (Published by Consumers' League). . . . ............................................................. ,10 TECHNICAL 4. How to Start and Run a Rochdale Co-operative Society....................... .10 4.00 5. System of Store Records and Accounts......................................... .50 6. A Model Constitution and By-Laws for a Co-operative Society................ .05 2.BO 8. Co-operative Education. Duties of Educational Committee Defined.......... .10 9. How to Start a Co-operative Wholesale....................................... .10 27. Why Co-operative Stores Fail.... ............................................. .02 1.00 2. Co-operative Store Management................................................ .10 14. How to Start and Run a Women's Guild....................................... .05 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 References 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 41. Farmer's Co-operation (By Benson Y. Landis)................................ .15 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 Alms 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 Real Co-operator: (25) Resolutions Adopted by A. F. of L.; (28) 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 Right to a Job; (48) Tips to Co-operators MONTHLY PUBLICATIONS CO OPERATION—(In bundle lots, $7.50 per hundred). Subscription, per year..............?1.00 HOME CO-OPERATOR, 4 pages..........................................................?1 per 100 INTERNATIONAL CO-OPERATIVE BULLETIN (Pun. 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: Bufonoff, J. B.: The Co-operative Movement in Russia, 1917................................. -?1.25 Faber, Hnrnld: Co-operation in Danish Agriculture, 1018.................................... 2.75 Flanagan, J. A.: Wholesale Co-operation in Scotland, 1920................................... 2.00 Gebhard, Hannes: Co-operation in Finland. 1016............................................. 2.00 Gide, C.: Consumers' Co-operative Societies, 1021............................................. 2.50 Gide, C.: Consumers' Co-operative Societies, American edition and notes, 1922. Cloth, $3.00; paper bound................................................................... .90 Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, $2.00; paper bound. . . . . ............................................................................... -60 Howe, Fred C.: Denmark, a Co-operative Commonwealth, 1921............................... 2.00 Maxwell, Wm.: History of Co-operation in Scotland, 1910................................... 2.00 Nicholson, Isa: Our Story..................................................................... .25 Powell, G. Harold: Co-operation in Agriculture. Macrnillan................................. 1.50 Redfern, Percy: The Story of the C. W. S................................................... 2.00 Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918.............................. 1.50 Redfern, Percy: The Consumers' Place in Society, 1920...................................... 1.00 Smith-Gordon: Co-operation in Many Lands, 1920............................................ 1.50 Sonnichseu, Albert. Consumers' Co-operation, 1919. Cloth bound, $1.75; paper bound....... .75 Stollnsky. A.: The Co-operative Movement. In Yiddish....................................... 1.00 Wehh B and S.: The Consumers' Co-operativp Movement, 1921.............................. 5.00 Webb. Catherine: Industrial Co-operation, 1917............................................. 1.50 Woolf. Leonard: Co-operation and the Future of Industry.................................... 1.50 Woolf, L.: Socialism and Co-operation........................................................ 1.50 "The Co-operative Consumer" and "Co-operation," III (1917), VI (1920), VII (1921), VIII (1022). . . . . ............................................................................... 1-25 Transactions of Second American Co-operative Congress. 1920.................................. 1.00 Transactions of Third American Co-opernrive Conpress. 1922............................... 1.50 The People's Year Book, 1923. Cloth, .80; paper bound...................................... .50 (Ten cents postage should be added for books which cost more than $2.00, and five cents for the smaller books.) THE CO-OPERATIVE LEAGUE (Member of The International Co-operative 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. Enclosed find $......... for Subscription for CO-OPERATION, $1.00. Membership in The LEAGUE, $1.00. Name. Address. Date.... Co-operative Central Exchange Wholesale Grocers and Jobbers, Bakers We supply goods to C*-*peraHve Societies ONL.Y. We are owned and controlled by Co- operativ* Societies. We are organized t» enable Co-operative Societies to do collectively what they cannot do individually. Co-operative Central Exchange Offices, Warehouses and Plant: Winter Street and Ogflen Ave, SUPERIOR, WIS. Co-operators' 1AA. Mutual Fire Insurance C*. Is now writing Insurance in State of Wisconsin The Canadian Co-operator Brantford, Ontario, Canada The organ of the Canadian Co-opera tive Movement, owned by and con ducted under the auspices of The Co-operative Union *f Canada. Published monthly 75c per annum MOVING PICTURES and Stereopticon Lectures may b* rented from THE CO-OPERATIVE LEAGUE 167 West 12th St., New York City 1. "Some Examples of English Co-operation." Moving pictures of factory processes (two reels). . ...........................$5.00 2. "Co-operation In the United States." With 53 Stereopticon views.......... .$3.00 3. "The Ce-operative Movement In Russia." 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 vou wish to keep in touch, read 'The Scottish Co-operator" (Published Weekly) Subscription: Tear 12 sh.; half-year, 6 sh. Address, 119 Paisley Road, Glasgow, Scotland THE PRODUCER Issued Monthly Price 3d. If you want to keep in touch with business, organization, 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. 6d. a year. The Trade and Technical Organ ef British Co-operation. THE HOME CO-OPERATOR A four-page magazine for use in co-operative societies. Issued monthly, in bundles, $1 per hundred. Published by The Co-operative League Publishing Office, Willimantic, Conn. Albert Sonnichsen, Managing Editor. 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 Leagne, 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. 4 APEIL, 10 Cents VITAL ISSUES TOWNS JOIN THE CO-OPERA TIVE SOCIETY In northwestern Germany three large towns have recently joined the local co operative consumers' society. These municipalities are Geestemiind, Lehe, and Eiistringen. Already a number of other towns have voted as political or ganizations to join the co-operative so ciety of the town. Geestemiind and Lehe have both become members of the distributive and co-operative banking society "Unterweser." The municipal ity of Lehe has had its insurance policies amounting to 250,000,000 marks trans ferred to the insurance department of the co-operative society. The Geeste miind municipal authorities are also negotiating with the co-operative society to take over insurance policies of a very considerable amount. The town of Eiistringen, in becoming a member of the Eiistringen Distributive Co-opera tive Society, has contributed 20,000 marks to the society's capital. The lat ter municipality has given as the reason for its joining the co-operative society, the fact that it will be able to procure supplies cheaper through its member ship in the co-operative. This informa tion is from the International Labor Of fice Bulletin (19-1-1923), which is main tained by the League of Nations at Geneva, Switzerland. This trend of events should recall to our minds the fact that in the Fall of 1920 the Co-operative Union of Austria proposed to the Austrian government that the Co-operative Union would take over the feeding of the population. The government was performing its func tions very poorly, and it would have been a good thing for the suffering peo ple had the proposal been accepted. In October, 1921, the Prussian Min ister of the Interior announced before the Prussian Parliament that high gov ernment officials should be required to work for a period with the co-operative societies before they are permitted to take office: this in order that "they may be trained in the new social spirit, in order that they may better under stand the life of the working people, and also to learn from them the methods of economic administration.'' We may recall also with interest the fact that H. M. Hyndman, the founder of the Social-Democratic party in Great Britain, and for forty years the leader of the Socialist Movement in that coun try, shortly before his death advised that the British Government should give over the administration of the Post Office to the co-operative societies. These scattered facts may not seem large in a world in which profit business and privileged ownership are the great and dominant forces. But to those who are straining their vision to see some signs of hope in the world of chaos they should give courage and comfort. They should encourage us for the reason that 56 CO-OPERATION the dominant forces are far advanced in decay and disintegration. Their domi nance is coming to an end. The end will be dreadful, indeed, unless there is some form of rational organization capable of taking up the essential social functions as the old order fails to perform them. This the co-operative societies are pre paring to do. This they are doing. They are the only form of organization capable of doing the work both of a decaying commerce and the failing political governments. That the people through their govern ments are turning to Co-operation to save them is a sign that sound sense has not yet wholly departed from the world. Its lesson to Co-operators is that our responsibilities are destined to grow with the changing current of events, and that we should build well the foundations upon which our structure is to rest. J. P. W. WHEN THEY ASK FOR BREAD, WHY GIVE THEM STONES? The co-operative movement has as its goal the ending of the tyranny of the profit system. Between the system of private profit and the program of co operative service there can be no truce. The one points the way to life, health, knowledge, and brotherhood; the other to destruction, poverty, ignorance, and fratricide. The co-operative societies of the coun try must emphasize these fundamentals continually. Most of them do not do this. There are hundreds of managers, thousands of directors and heads of committees in the societies of the United States who are constantly cringing be fore the profit system. They are afraid of offending influential business men or politicians. They find it easier to point out the likenesses between the two eco nomic systems than to emphasize the differences. Such timidity saps the vitality of the movement. "Oh, yes, I know the co-operative store," says a good neighbor, as she meets the secretary of the co-operative. "I would like to trade there, even join; but my brother-in-law runs a grocery store across the town and he says co operation is Socialism. Then he givea me very good prices when I buy from him, and when I need it he gives me credit." What will the co-operative secretary reply? Nine times out of ten he will insist that co-operation is not radical, that it has nothing against the good brother-in-law's way of doing business. Then he will begin quoting the week's price list of bargains at the co-opera tive, and will dilate on the petty con veniences offered by the co-operative store. Possibly he wins her as a tem porary customer. But what has he got? He has appealed to her profit-making, bargain-hunting instincts. He is pre tending that the co-operative store is a superior kind of private-profit store. He and the manager will hold her only as long as they give her special favors, pamper her with special bargains, main tain the false relationship of the petty trader fawning before the grand lady customer. A dozen, a score, a hundred such pa trons or members will wreck a co-opera tive store. They are absolutely fickle. They know no loyalty. They gradually become more and more exacting in their demands. They exert at first a subtle tyranny over manager and clerks and gradually dominate the co-operative with their profit-seeking ideas and hab its. Even the directors themselves fall a victim to the pestilence. The co-opera tive which caters to the selfish whims of the bargain hunter by that much ceases to be a co-operative, and is strengthen ing the backbone of the profit system. We have something better to offer than petty bargains and a lackey service. To the woman cowed by poverty we hold up the vision of a world of plenty. To the embittered by the futile struggle against a host of business competitors we offer a co-operative business world. To the wage worker whose income is too little to support the family at home we point the road to the industrial order owned and controlled by the workers themselves. To the debt-laden and weary toiler on the farm we extend the hand of fellowship and help him enter the newer life where he can at the same time have his economic independence CO-OPERATION 57 and the active assistance of his neighbor. Co-operation throws out a ringing challenge to the world we live in. Why not say so! All people know this eco nomic order is whirling toward chaos. Even though they may not say it them selves, deep in their hearts they want a leadership which will tell them the whole truth and point them to the up hill road. When people cry for life and hope, why do we hand them two-penny bargains! C. L. KEEPING DOWN THOSE EXPENSES One of the common excuses made by managers for failure to run their stores at a profit is "lack of sufficient busi ness." It usually passes as a very good reason. But there is no more reason why a business of $500 a week should be run at a loss than there is for a loss in a business of $5,000 a week. We cite the following as a proof: Pinckneyville, Illinois, has a little store which is a member of the Central States Wholesale. During the seven weeks between November 11 and Decem ber 31, 1922, the sales in this store to talled $446.44, an average of about $63.50 per week. The gross surplus for the period was $59.14, or 13.2 per cent of sales. Overhead expenses came to $44.46, or 9.9 per cent of sales. The net surplus was $14.58, or 3.3 per cent of sales. It's a wise horse that knows when it has enough on its back, and refuses to carry the load of an elephant. C. L. CO-OPERATIVES LOWER PRICES One thing that everybody who has studied the matter knows is that Co operation lowers prices to the consum ers. We are constantly publishing in this magazine the figures illustrating the savings which are thus secured. The amount of money that is daily being saved to consumers in the United States by co-operative societies is beyond cal culation. Wherever a co-operative store is established, there the merchants know that they have to stop profiteering. The simple existence of the store helps all consumers—members and non-members. A few years ago, in an Illinois town, the local merchants decided to put the co-operative store out of business. They cut prices on a dozen articles and had leaflets printed giving the reduced prices. These were distributed among the members of the co-operative society. As soon as the manager of the society saw one of these leaflets he went around to the private store and got a load of them and agreed to distribute them him self. And he did. But he stamped on each one: "You have to thank the Co operative Store for these reductions. Stick to the Co-op. It brings down prices." The people saw the point. They realized that if it had not been for the Co-operative the bargains would never have been offered. The co-operative store in hundreds of American towns is a standing challenge to the profit-making merchants. Not only stores, but bakeries, creameries, restaurants, and laundries, are saving money for the people. The existence of the Purity Bakery in Paterson, N. J., is keeping down the cost of bread to a million people in northern New Jersey who never heard of the Purity Bakery. But the most significant fact is this: Societies that have had to close their doors and go out of business belong in this same category. There is many a society which, during this period of hard times and unemployment, has "failed" according to business calcula tions. The members have thought that they lost the money they put in. But while the society was doing business it has saved to the members, in holding down prices, all the money that their total share capital represented. And these so-called unsuccessful societies have often saved to the community vastly more than the money that the members have thought they lost. A successful co-operative society is a blessing. This may be proved by the fact that the profit-making merchant never likes it, and he is willing to go to any pains to destroy it. It is bad for the profit-making merchant, and that is one reason it is good for the people. J. P. W. 58 CO-OPERATION CO-OPERATIVE HOUSING BY DANIEL W. HOAN Millions of men and women in the United States are in need of homes that they cannot secure. The Secretary of Commerce estimated that there is a shortage of 1,200,000 houses. The U. S. Census Bureau in 1921 estimated that 54 per cent of the nation live in rented homes. This presents an economic situ ation which is appalling. More so be cause the problem made critical during the war is rapidly growing worse. Mil lions of our citizens are living in such crowded conditions that their health and morals are seriously endangered. In contrast to this prevalent situation in our country is the deliberate and or derly organization of home-building which is being carried on in many of the European countries. Since the war, every European country has accepted housing as a public social function. The resources of the people are being mobil ized in co-operative and fraternal asso ciations for home-building. The Euro pean municipalities and districts are making loans and in some cases outright subsidies to non-profit building associa tions so as to encourage large-scale build ing activities. In our country, however, neither the cities nor the states have recognized their responsibility or ren dered such assistance to their citizens, with the exception of the City of Mil waukee. THE MILWAUKEE PLAN The most far-seeing and significant enterprise in co-operative housing that has been undertaken with the financial assistance of a municipality and district is the joint plan of action recommended and carried into effect by the Housing Commission of Milwaukee. In the Spring of 1919 the Mayor, the Health Commissioner and the Building Inspec tor urged the passage of a bill to em power the municipalities, the counties of Wisconsin and individuals to purchase stock in co-operative housing enterprises. Much opposition developed in the be ginning. The plan was called paternal istic, socialistic, and foreign. Gradually, however, the opposition was overcome and it became possible by 1920 to incor porate the Garden Homes Company. The aims of this enterprise are: The elimination of speculation in land values. The economic and adequate planning of streets, sewage, water, lighting, tree planting and recreation spaces. The elimination of waste and of pri vate profit in home construction. The collective ownership of homes by the workers, without the handicap of labor immobility. The use of legal, technical and artistic skill for the benefit of Wisconsin's citi zens and home owners. In the furtherance of this plan twenty-eight acres of land with good transit facilities were purchased. Houses on plots 60x100 feet and over were built, each one amounting to an in vestment of $4,500. (The land $700, the house $3,800.) Tenants buy shares in the Garden Homes Company. The preferred stock amounts to $250,000; the common stock $250,000. Shares are $100 each. The preferred stock may be acquired by in vestors other than tenants, and draws interest at the rate of 5 per cent. The common stock is owned only by the home occupant. It draws interest if the cor poration so determines. The occupants are required to subscribe to common stock equal to the cost of homes on the partial payment plan. As the occupant pays for his stock the corporation uses that fund to purchase and retire the preferred stock. The owners of the pre ferred stock stand much in the same relation as the holder of the mortgage on a home. Besides paying for his stock the home owner pays a rental suffi ciently high to cover interest, taxes, in surance, depreciation, and repairs. The control of the company is in the hands of a committee of tenants elected by the common stock holders. They pass on the fitness of administration and management. At present both common and preferred stock holders vote. The voting is carried on in proportion to the number of shares held, instead of each tenant having one vote irrespective of CO-OPERATION 59 the number of shares held; but the ten ants (the common stock holders) will gradually supersede the preferred stock holders as they take over the latter's holdings and gain complete control. The home owners do not receive title to their specific houses. The tenant does not purchase a house. He owns common stock in the company. This is in accord ance with the experience of co-operatives the world over. To eliminate all specu lation in houses, the co-operative society as a whole must always own and control the title to both the land and the build ing. This not only tends to eliminate exploitation of the tenants, but also pre vents their exploitation of others at any time. The so-called unearned increment of land values is also preserved in this vray for the whole group. The co-opera tive company—not the individual— profits by any increase in the valuation of the property. It is not the purpose of co-operative building societies to en able tenants to obtain homes at bottom prices by building collectively and then to allow the individuals to own and sell them for profit to others. Such a policy destroys the Society. The purpose of co-operative building societies is to pro vide permanent homes for the people collectively owned and controlled by the tenant members without private profit or speculation in land and buildings. GENBEAL OPERATING EXPENSES OF THE MILWAUKEE PLAN Taxes, $30 per $1,000........ Fire insurance ............. Repairs ... ................ Contingent fund ............ Life and accident insurance.. Per year $332 5 60 20 30* Perpetual fixed charges.............. $2671 .Five per cent interest on preferred stock on $4,500 per year................. 205 Amortization payment toward owner ship of stock.......... ........ 120 $592* * The payment of this insurance enables widows or dependents to complete the pay ments for share capital. t Equals $22.25 per month. t Equals $49.33 per month for first months, then gradually decreasing. At tie end of 20 years all interest on preferred stock and amor tization payments will be eliminated. The charges will then b« $22.25 per month. It will be seen that many benefits are obtained by the members of this co-op erative Garden Homes Company. The tenant obtains a home, at a rental not higher, and probably less than else where. Although the cost of the house is high, more than the average worker can to-day afford, yet the present mem bers are obtaining homes which could not possibly be bought at such a price otherwise. Economies have been ef fected through the wholesale buying of land and materials, through the building of houses in numbers, and through the elimination of speculative profit. The home owner secures a house with a gar den, plenty of fresh air, a house well built and beautiful, one in which he can take pride. He lives in a community where all are equally desirous of keep ing up the property. In order to insure care in the use of the property a plan has been adopted to deduct the cost of repairs from the twelfth month's rent, and to remit the remainder to the tenant. If on account of sickness or because a member is compelled by circumstances to give up his residence and move else where, the by-laws of his society provide that the Garden Homes Company must purchase his paid-up common stock at its par value, less any damage that may have been inflicted upon the residence. The last report indicates that about ninety houses are now nearing comple tion, while many more will be under way in 1923. The co-operative ownership, erection, and administration of healthful homes for the people without private profit that has been demonstrated by this Mil waukee plan is capable and deserving of wide duplication throughout the United States. CO-OPERATIVE APARTMENTS In many parts of the United States co-operative societies have recently been formed for building multi-family dwell ings to be owned and operated by the tenant members without profit or specu lation. In Brooklyn, New York, the Scandi navian Housing Associations own 20 buildings for 308 families. The first one was organized in 1917. These houses vary in cost from $48,000 for one six- 60 CO-OPEEATION teen-family house to $150,000 for two eighteen-family houses. The average monthly payment is not more than $9 a room. The average amount of shares held by each member is from $1,000 to $2,000. The society has also bought old tene ment houses, remodelled and repaired them. Comparison between the old rents and the new are instructive. Where cash payments were $1,700, the old rent was $80; the new rent is $44. Where cash payment was $2,200, the old rent was $85; the new rent is $50. Where cash payments were $1,500, the old rent was $60; the new rent is $35. On a property worth $80,000, cash payment $26,000, first mortgage $32,000, second mortgage $23,000. Interest on principal annually amounts to. ............................. $1,500 Interest on first mortgage amounts to. 1,920 Interest on second mortgage amounts to. . . . ......................... 1,380 Taxes and insurance................ 3,200 Coal and light..................... 800 Repairs. ......................... 300 Janitor's service with rooms........ 300 $8,400 Larger savings can be effected when a co-operative society purchases the land and builds its own co-operative apart ment. However, in many instances it has been found expedient to purchase existing apartment houses. Such an ex ample is to be found in the Stockbridge Apartments at 605 W. 138th St., New York City. Twenty-four tenants organ ized a co-operative society and bought out the owner of the property for $152,- 000. They paid down $30,000 in cash, the balance being covered by two mort gages. The tenants own the shares, ranging from $900 to $1,500, in propor tion to the value of the apartment occu pied. They pay from $75 to $105 monthly rental for six and seven rooms. This amount decreases as the mortgages are amortized. The rental represents a saving from $30 to $50 per month in that neighborhood. In similar co-operative enterprises democratically controlled and owned by the members additional joint activities have been carried on, in the building, for the benefit of the members, such as a co-operative laundry and a co-opera tive restaurant. Many co-operative apartments similar to the above examples exist to-day. It is impossible to describe them all in this report. NON-CO-OPERATIVE "TENANT OWNERSHIP" Recently in the large cities the great demand for homes has given rise to the launching of building enterprises for profit by real estate companies. Large promoting corporations have purchased and developed property, erected build ings, and sold them to tenants at their own price on what they have called the "Co-operative Plan." The property in most cases has consisted of a series of large buildings accommodating hun dreds of families. The surroundings have been developed along the "garden plan" and community activity, gardens, children's playgrounds, tennis courts, and golf courses have been established by the promoters. They differ from true Co-operation in the following respects: Shares vote rather than individuals; savings are re turned to the members in proportion to their shareholdings, rather than in pro portion to their rental patronage; ten ants may sell their shares on the open market at their own price, rather than by the co-operative method of having the ownership of stock always controlled by the co-operative building society, and thus keeping the share value always at par. Another profit-making plan which is using the word "co-operative" unwar- rantedly is that in which groups of ten ants own portions of the property on a collective basis and along the same lines as outlined above, but in which the re mainder of the building is rented to non-members for profit by the tenants' corporation, and to its advantage. The profits from the rental to non-members are estimated to be sufficient to cover the operating expenses, interest, and amortization. As a result of this plan the members of the corporation do not have to pay any rent at all. A number of these enterprises are operating in New York City. CO-OPERATION 61 CO-OPERATIVE BOARDING AND LODGING HOUSES The need for homes on a non-house keeping basis for unmarried men and women has been met in various parts of the country by the formation of co operative boarding and lodging associa tions. Students, women workers, and itiner ant workingmen have organized societies to meet their needs in a number of places. They usually subscribe for shares in small amounts, and pay an additional monthly charge for their rooms. Any surplus over and above that needed to meet fixed charges and operating expenses is returned to the members at the end of the year in pro portion to their patronage. The profits, in some cases, are used collectively for social purposes. The management is elected by the members from their own group. The Finnish people are particu larly interested and have developed co operative boarding houses in many in dustrial centers where they have settled. WORKERS' CO-OPERATIVE BUILDING GUILDS Many people confuse co-operative housing societies which are organized, owned and administered by the tenants —the consumers—with those building guilds of workers who unite their labor power and their capital in co-partner ship associations and proceed to build homes which are sold to the public. These houses are usually sold at a price which covers the cost of erection and the guarantee of a fair trade union wage to the worker, with steady employment. Very few such building guilds exist in the United States. The guild plan be longs with other efforts of trade union ists to better their conditions and should be given encouragement by Co-operators. FUNDAMENTAL PRINCIPLES OF CO-OPERA TIVE HOUSING Interest of the people in co-operative housing on the Rochdale plan is grow ing in this country. Your committee hopes that, in the development of this method of housing the people, the fol lowing fundamental principles will al ways be adhered to in order to insure the carrying out of the successful meth ods which have been achieved in Europe: 1. Legal ownership of the property always remains vested in the whole so ciety. The members do not have title to the particular part of the property they occupy. 2. The members rent their homes from the society, upon long leases, life long, or longer if they desire. This gives them property in which they may develop a personal interest, for every purpose ex cept speculation. 3. Upon the death of a member, the children or heirs have the privilege of becoming members and perpetuating the lease. 4. Invested capital receives a fixed in terest, never exceeding the current market rate. 5. Shares in the society's capital stock always remain at par and should be non-transferable except with the consent of three-fourths of the society. The so ciety should purchase back the mem bers' shares if possible. It should al ways have the right to pass upon the eligibility of the purchaser of the so ciety's shares. 6. Each member of the society has one vote regardless of the amount of stock owned, thus insuring democratic con trol. Full responsibility for the admin istration rests with the board of direc tors elected by the tenant owners or by experts employed by the board of directors. 7. Surplus-savings accruing from the society's operations after all fixed charges and operating expenses are paid, if not placed in the reserve fund or used for expansion or other collective purposes, are returned to the tenant members in proportion to the amount of rental paid. 8. Whenever possible, a co-operative housing society should enter into other co-operative activities, such as laundry, kitchen, service, landscape gardening, play grounds and play rooms, central library, infirmary, swimming pool, store, garage, and other common interests, and large societies might organize their own architectural and building department and establish their own cement and brick and other works, as is done by the housing society of Copenhagen, Den mark. 62 CO-OPEEATION CO-OPERATIVE BUILDING IN COPENHAGEN Translated from a Swedish Magazine by 0. A. NILSSON In the October, 1921, issue of CO- OPEEATION, Dr. Warbasse, under the heading "European Impressions: Den mark," mentions among other co-opera tive enterprises "Arbeidernes Andels- Boligforening" (The Workingmen's Co-operative Building Association of Copenhagen). To commemorate the tenth anniversary of its founding this society issued in March, 1922, a pam phlet giving the history of its inception and remarkable growth and describing its activities. As in other places, housing conditions in Copenhagen have suffered from un sound financial conditions. After a period of overbuilding and frenzied speculation, resulting in 1906 in over 9,000 empty apartments in the city, a reaction set in which gradually reduced the number of unoccupied apartments, and together with the influence of the World War brought on an acute build ing shortage with serious congestion and other evils in its trail. Long before the crisis the unions of the building trades became concerned about the situation, and among other attempts to get a resumption of build ing urged the bankers to step in. The reply was, of course, that with a large number of unoccupied apartments there was nothing to be done, and when build ing could be resumed with profit it would be done. A suggestion that if the banks refused to act, the building work ers might take matters into their own hands was met with the reply that they were welcome to try; they would soon discover that the task was beyond their power. This, too, was the opinion of many of the workers themselves. They did not believe that co-operation could solve the housing problem, that the needed capital could be raised, nor that workingmen could cope with the many difficult prob lems involved in building construction. However, on March 22, 1912, '' Arbeidernes Andels-Boligforening'' was founded with twenty-three mem bers. The pioneer work of the movement was done mostly by men already inter ested in co-operation as members of Consumers' Co-operative Societies, and the first building was erected through the united efforts of these two move ments: Consumers' Co-operation and co-operative building. The members of one of the local consumers' societies, which, both through lack of capital and through opposition to the movement, had difficulties in securing a suitable store, joined the building society, and in the first building erected this society be came a co-operator and received space for its store. Thus began, during the first difficult efforts, an intimate co operation between these two related movements that was continued and re mains to-day. The first building was erected in 1913, the second and third in 1914. The part of the capital for these buildings that could not be obtained from the members themselves was, at first with consider able difficulty, and on no easy terms, borrowed from the banks. For the next building the society borrowed the money from one of the trade unions. The union, instead of depositing its money in the bank, to be lent by it to the build ing society, eliminated the bank, thereby saving money both for itself and for the building society. This fourth building for sixty families was finished in 1915. Another step forward was taken with the fifth building. In 1914 "Den Danske Andels-Bank" (The Danish Co operative Bank) had been started. It was founded as a rural bank and had no intention at first of doing business or having a branch in Copenhagen. But an application for a loan from the build ing society was not only granted but it also resulted in the location of the bank in Copenhagen, and with it began an economic co-operation to which may be attributed a great deal of the subsequent rapid growth of the building society. While the housing shortage was in creasing, the accomplishments of the co operative building society secured for CO-OPEEATION 63 it the confidence of the public and a rap idly increasing membership. The sixth, seventh and eighth buildings, with a total of 232 apartments, in addition to stores, were planned and erected in rapid succession. Through the Inter-Allied Housing and Townplanning Congress held in London in June, 1920, the society be came interested in the English type of '' garden-city'' dwellings—good, sani tary, and inexpensive to construct—and to demonstrate its good points erected in the same year on one of its properties such a house. This resulted in a strong pressure on the society to erect a num ber of dwellings of this type. Accord ingly plans were made to erect on a ten- acre plot a group of 140 such one-family dwellings each with its own garden, and centered around a small lake with at tractively laid out grounds. The co-operation with the Dansk Andels-Bank. which began when the bank financed the fifth building of the society, increased tintil all the finances of the society were transacted through the bank, and the two co-operative move ments became in other ways closely affil iated. The business of the bank grew rapidly to such dimensions that it needed larger space. The result was the imposing structure described by Dr. Warbasse in the above mentioned arti cle, built and administered jointly by the building society and the bank. Realizing the importance of an inde pendent supply of building materials, the society in 1916 bought its own brick yard and began to make part of its own brick. This was followed by the pro duction of roofing tile, cement blocks, and artificial stone, drain tile, a lumber yard, carpenter shop, a planing mill, and a paint shop. Beginning with a membership of twenty-three, the society has in ten years gained a membership of over 6,000. It had, when the pamphlet was issued, com pleted fifteen multi-family dwellings— "complexes"—containing about 1,500 apartments and a number of co-opera tive stores. It had under construction, scheduled to be completed within 1922, including the garden-town scheme, five additional projects, with housing facil ities for between 700 and 800 families. This is indeed a remarkable story of rapid growth and unbroken success. The significant fact is that it is the re sult of the mutual aid of three separate co-operative movements—Consumers' Co-operation, Co-operative Building, and Co-operative Banking. Each of these movements began independently, each has by co-operating with the others gained a success, which, standing alone, it could not have attained. NEWS AND COMMENT FAKE CO-OPERATIVES IN RECEIVER'S HANDS Last month saw the downfall of two spurious co-operatives against which we had warned in the columns of CO OPERATION. The L. R. Steel Company and several enterprises connected with it, which we exposed in our January issue as a spurious co-operative, went into the hands of receivers on March 7th. More than twenty million dollars worth of stock had been bought in this concern by the public, in almost every state in this country and in Canada. Twenty millions of savings of people who can least afford the loss sunk into a company that used every lure known by shrewd promoters to separate the gullible public from its dollars! We have spoken with many of the stock salesmen of the Steel concern. They all stressed the alleged "co-opera tive" character of the business, and pictured L. R. Steel as a kind public benefactor who would enable the poor investors to make millions. As usual, this high-pressure promotion scheme came to grief after about two years of feverish money-getting. In January of this year it was reported that the con cern could not meet its current bills. Mr. L. R. Steel then resigned "on ac count of ill health." In February the Blue Sky Committee and the Attorney General of Maryland investigated the activities of the concern in Maryland, with the result that the stock-selling of fices were closed. Thousands of those 64 CO-OPEKATION who had bought L. K. Steel stock be sieged the offices of the company for their money in vain. Although the Steel Company had been boomed as a co-operative, the committee of creditors attributed the difficulties of the com pany to the fact that it was "too much of a one-man proposition," lacking effi cient co-ordination. In the meantime the bankruptcy of the "Co-operative Association of Amer ica" is announced in the press. Al though about $175,000 was invested by 4,800 persons in the association, which was to conduct chain-grocery stores in St. Louis, the assets of the company were only $784 when the receivership was declared. The "Co-operative" As sociation of America was run along the lines of Harrison Barker's notorious or ganization. It was governed by three self-appointed trustees, who were enti tled to a rake-off from the income of the business. Officials are now making an investigation to discover what became of the funds. The downfall of these two fake co operatives is another illustration, if any were needed, of the failure of the chain- store promotion idea. Americans are apt to trust their funds with concerns that talk in terms of millions, and that aim to establish a chain of enterprises all over the country. At least thirty- five million dollars have been lost in spurious co-operatives which went into bankruptcy during the past four years. But the local, self-governing co-opera tives which spring spontaneously from a group of consumers are growing in strength day by day, while the gigantic fakes crumble. BLAZING THE TRAIL FOR A CO-OPERATIVE BANK LAW Scores of labor union and farmers' organizations that have been consider ing the formation of co-operative or people's banks during the past two years, have been confronted with the absence of state or national banking laws which would permit a bank to have co-operative features. For that reason the banks which have been or ganized recently by labor bodies have usually failed to provide for any co operative feature but the limiting of dividends paid stockholders. In spite of the legal difficulties in the way of form ing co-operative banks, there is a grow ing and a strong sentiment for such in stitutions. Doubtless there would be hundreds, if not thousands, of co-opera tive banks organized by the people them selves, if there existed banking laws au thorizing such enterprises. With this great need in view, The League arranged a series of conferences of experts on co-operative banking. Three conferences have already been held, at which plans were laid for an energetic campaign to support an amend ment to the National Bank Act which would permit co-operatives to organize. A Banking Committee was organized in accordance with the instructions of the Third Co-operative Congress, which committee will advise groups endeavor ing to start co-operative credit enter prises, in addition to its legislative work. The conferences have been attended by such well-known experts as Senator Smith W. Brookhart, Dr. W. F. Mc- Caleb, Mrs. Gertrude M. Shelby, R. Ingalls, Miss Caro D. Coombs, E. A. Filene, R. F. Bergengren, and Dr. J. P. Warbasse. Senator Brookhart has announced his intention to introduce in the next ses sion of Congress a bill for co-operative banks, in the form of an amendment to the National Bank Act. In the session of Congress which has just adjourned he introduced a bill which would permit co-operative banks to incorporate with only $15,000 in capital, with shares sell ing for as low as $10 each. The divi dends of stockholders were limited by the bill to 8 per cent. The bill provided for the distribution of earnings to both depositors and borrowers, on a patron age basis. No stockholder could have more than one vote, and no proxy voting was permitted. Senator Brookhart's bill provided for the creation of a co-opera tive reserve fund, to safeguard the in terests of the banks, and for an inde pendent co-operative reserve system. Naturally enough, the bill drew in dignant comments from notoriously con servative senators, and it was painlessly smothered in committee. Senator CO-OPERATION 65 Brookhart will introduce almost the identical bill in the next session of Con gress, with the assurance that the in coming Senate will contain more mem bers favorable to such legislation, and that a campaign can be organized by such bodies as the League's Banking Committee to make a national issue of the Co-operative Bill. CO-OPERATIVE TELEPHONES Hundreds of telephone lines are being operated by the farmers of this country for mutual service, on the co-operative basis, according to a bulletin recently issued by the U. S. Department of Agri culture. In 1912 there were 368 mutual telephone companies, operating 125,956 telephones, with 95,033 miles of wire. The likelihood is that the number of these co-operatives has increased during the past ten years. Certain it is that the cost of operating co-operative tele phone lines is considerably below that of the private companies, for all types of service. Whereas the joint stock or profit-making companies charged $16 for service on each telephone, for every type of line involved, the mutual com panies having capital stock charged $11.70, and those without capital stock charged only $7.26, or less than half the rate charged by the private concerns. The co-operative telephone companies operate at a lower cost per telephone as the number of telephones served in creases, while in the private companies the cost of each telephone increases with the number served. The Department of Agriculture de scribes the co-operative telephone com panies as follows: "The pure mutual organization is operated solely for the convenience of its members. All members share in the management, either di rectly or through their representatives, and each bears his pro rata share of the expenses of the enterprise. . . . The stock mutual differs from the pure mutual in several re spects. Instead of prorating the costs among its members, the stock mutual, as its name implies, issues shares of stock, which are sold to those desiring telephone service. Ordi narily, only one share of stock is sold to a member, but this practice is by no means uni versal. Sometimes the voting privilege of members is determined by the number of shares held, each share carrying one vote, but more commonly each member is allowed only one vote, regardless of stock held. . . . Divi dends are seldom paid on the stock of such companies, the shares being in most cases little more than certificates of memoership. The shares may not be transferred without the approval of the company, and must usually be surrendered at par upon the withdrawal of a member or the discontinuance of the service. In other respects, the stock mutual is not un like the pure mutual, having the co-operative plan of organization and management." "OUR CO-OPERATIVE CAFETERIA" "Our Co-operative Cafeteria" is the name of a highly successful organization in New York City that is everything that its name indicates. It is owned and controlled by consumers, it is thoroughly co-operative in form and spirit, and it is a model of perfection from the stand point of the cafeteria. Three branches are doing business in crowded business districts of New York. The figures for the fiscal year are not in, but the sales to date exceed $300,000. Wholesome, tasty food is supplied at the usual prices, rebates being returned on patronage. During the first three quar ters of the year patronage rebates of 9 per cent, 7 per cent, and 7 per cent, re spectively, were returned to members. These rebates totalled to $3,726, which represented earnings made on the meals of members. The earnings made on non- members' meals were put aside in a fund to extend the business, and to further the Co-operative Movement. Since the business came into existence, about three years ago, a sum of $28,800 has been accumulated for these purposes. The cafeteria has an active educational committee which meets frequently. Terse, readable leaflets are written by this committee and distributed among members and the general public. Two libraries are maintained where books on Co-operation are available. During the last four months, a membership drive was undertaken, that gave gratifying re sults. The cafeteria now has a mem bership of 1190 stockholders. The cafeteria is run very efficiently. It has total assets of $48,816, of which $31,488 represented cash in banks. The opening of another branch in the near future is in prospect. 66 CO-OPERATION CO-OPERATIVE BREAD AND STRIKES In previous issues, we reported the splendid work done by the co-operative bakeries of Massachusetts, to feed the textile strikers of the Pawtuxet Valley last year. A fairly complete review of the co-operative aid during the strike is now at hand. When the strike against the proposed wage-cut broke out in the textile industry in New England, there were half a dozen co-operative bakeries in the district, organized among the Jews. Immediately, relief work was planned. Led by the bakery in New Bedford, Mass., thousands of dollars were collected from sympathetic or ganizations, including the co-operatives and labor unions. This money was spent in the purchase of flour, which was baked into bread in the co-operatives, without any expense to the strikers' or ganizations. It is estimated that the co-operatives baked bread worth $13,- 600, at a cost of only $8,000, the funds being raised by the co-operatives them selves. Thus the co-ops collected dona tions and made the most effective use of them possible, by turning dollars into bread for the strikers. A telephone call in the morning from the strike committee would notify the co-operatives of the number of loaves of bread wanted, and the rest was au tomatic. The New Bedford bakery sup plied the strikers with 101,967 pound loaves of bread, and the Brockton, Wor cester, Springfield and Lynn co-opera tive bakeries brought the number of loaves up to 170,967. In addition, the Lawrence co-operative bakery supplied the strikers in that city with bread, but a report of the extent of this aid is not available. It is safe to say that without the help of the co-operatives of Massa chusetts, the textile strike would prob ably not have been won by the workers. THE FINNS IN BROOKLYN The Finnish Co-operative Trading Association of Brooklyn, N. Y., is now starting its fifth year of business. These co-operators do both wholesale and re tail bread business, run a meat market, and on the top floor of their building have a large poolroom. In 1922 the bakery business was $142,736, the meat business $81,172, and the income from the recreation room $9,279, making a total of $267,001. The surplus for 1922 was $5,661, and, as usual, 5 per cent was put aside for educational work, the balance going to the Reserve Fund. Since this society was organized the members have regu larly voted each year to distribute no rebates to themselves. This is the ex planation of their Reserve Fund of al most $18,000, their ownership of land and buildings valued at $116,100, and an inventory and fixture item of more than $30,000—all on a capital stock of $45,945 and loan capital totalling $80,602. There are 1,767 members in the F. C. T. A. At the annual meeting they voted to buy more ground for the extension of their building, and to hire a full-time sales manager to work under the regular manager (Otto Arlund). This year as last all employees are to be given one week's vacation with full pay. The membership voted full confidence in the manager and directors. AN UPHILL VICTORY The Farmington Co-operative Society of Farmington, Illinois, has just had one of the best years in the history of the society. A few years ago this co operative had only sixteen loyal mem bers, and it was about $3,000 in debt. Now the last quarter found it with a membership of more than 200, and with a building of their own and thou sands of dollars in reserve. The earn ings made in the thirty-first quarter amounted to $5,809, or a return of 23 per cent on the share and loan capital. Most of this sum, $4,581, was distributed to members as a 10 per cent rebate on purchases; $691 was allotted to the Re serve Fund, $486 to their Building Fund, and $50 to the Educational Fund. In addition, interest was paid on loan capital. The society had at the end of the year more than $5,000 in the bank. A general merchandise business is carried on, the sales amounting to about $200,000 a year. CO-OPERATION 67 FOREIGN INTERNATIONAL EXECUTIVE MEETING The Executive Committee of the In ternational Co-operative Alliance met at Ghent, Belgium, February 3d and 4th. Three committees of the Executive met at the same place to discuss Co-operative Banking, International Co-operative Wholesaling, and Co-operative Insur ance. The Executive Committee took advan tage of its presence in Ghent to make arrangements for the International Co operative Exhibition, which takes place in that city in 1924. The Palais des Fetes, an immense building, was chosen for the Exhibition. Fascist! outrages against the Co operative Movement were discussed by the Executive Committee. On behalf of the Russian Co-operative Movement, Leo Khinchuk proposed that an appeal for financial aid for the devastated co operatives in Italy be issued, and of fered to contribute 25,000 lire. It was decided to seek an interview with Pre mier Mussolini in order to call to his attention the attitude of the Fascisti against the Co-operative Movement. The question of financial assistance for the Italian societies will be considered by a special committee. The proposal of the Alliance to annu ally celebrate "Co-operators' Day "met with approval on all sides. A manifesto and outline program are to be prepared for the guidance of co-operative socie ties. The first Saturday in July was selected for the annual co-operators' festival. It was decided to adopt an International Co-operative Flag and Badge to express the spirit of interna tional fraternity. POLISH PRESIDENT A CO-OPERATOR The President of Poland, Stanislaw Wojciechowski, who was elected to the highest office in the land December 20th, is one of the most prominent leaders of the Co-operative Movement of Poland. In 1899 Mr. Wojciechowski went to England as a political refugee, and he spent seven years in studying the co operatives in the land where Rochdale Co-operation was born. On his return to Poland in 1906 he became a co-opera tive pioneer and has been important in shaping the development of the Polish co-operative societies. RUSSIAN EXHIBITION An All-Russian Exhibition is being organized in Moscow, that will open in August, 1923. Co-operative societies of all types are planning to take an active part in the exhibition. Goods will be displayed suitable for export, such as furs, timber, and the products of the kustar or home industries. Foreign co operative societies are planning to ex hibit co-operative products suitable for exchange with Russian products. Amer ican co-operative societies have been in vited to submit their exhibits, for educational or trade purposes. WOMEN CO-OPERATORS PRO TEST RUHR INVASION "In the name of all women who seek to build a new world of peace and inter national understanding between peoples through the co-operative organization of the world, the International Co-opera tive Women's Committee protests against the occupation of the Ruhr, which is being carried on contrary to the provisions of the peace treaty. This occupation will aggravate the danger of war in Europe and inflame all those passions which make for its renewal. Therefore the Committee calls upon all women the world over, and espe cially mothers, to take a definite stand against every new peril of war, and to resist it by all means in their power. The International Co-operative Wo men's Committee wishes to express its deepest sympathy with the invaded peo ples and especially with the members of the German co-operative movement, and it hopes that all the forces in all nations will unite to avert the danger of fresh war.'' THE INTERNATIONAL CO-OPERATIVE WOMEN'S COMMITTEE. 68 CO-OPERATION FROM THE LEAGUE HEADQUARTERS SECRETARY'S REPORT OF THE ACTIVITIES OF THE CO-OP- OPERATIVE LEAGUE FOR 1921 AND 1922 1. During 1921 and 1922 The League has sent out 177,360 pieces of literature and 1,696 books. 2. Published two monthly magazines, averaging 12,000 copies per month. 3. Issued a monthly practical bulletin to affiliating societies, some of the sub jects being: "Model Form for Getting up Store Reports," "How to Give Credit," "Do Not Destroy the Store," "Chart for Finding Retail Prices," "Income Tax Suggestions," "Member ship Drives," "The Manager and Your Store," "Are Your Employees Co-op erators?" "Accounting Methods," "Do Not Overbuy." 4. Sent out a news service regularly to 150 papers of the Labor Press. 5. Received and answered 6,879 let ters asking for advice and information; and sent out 20,000 circular letters on routine work of the Co-operative Move ment. 6. Published a syllabus for the study of Co-operation in schools, colleges and study groups. 7. Sent speakers to 273 meetings, in cluding one extended trip from coast to coast. 8. Sent two delegates to the Interna tional Co-operative Congress in Switzer land, who visited over 200 co-operative institutions in ten countries, addressed audiences in Denmark, Germany, Czecho slovakia and Switzerland, and lectured at the International Summer School at Basel. 9. Interviewed 843 visitors in the offices of The League from the United States and 13 foreign countries. 10. Conducted three courses in Co operation over a period of six months, embracing Educational Subjects, Store Management, Accounting, etc. 11. Circulated illustrated lectures and moving pictures on Co-operation. 12. Wrote 124 special articles for magazines and newspapers. 13. Organized 12 Women's Guilds, and sent special suggestions for socials, entertainments and members' meetings to societies. 14. Gave legal advice on incorpora tion, charters, taxation and litigation to co-operative societies. 15. Drafted and published a Model Co-operative Law for introduction in all states. 16. Investigated and lodged formal complaints with state authorities against fake co-operatives, and warned societies of fraudulent and unsound enterprises. 17. Advised the societies of the Pacific Coast how to save themselves from the wreckage of the Pacific League. 18. Published advice and warnings on the falling market, overbuying, income tax, and other practical business policies. 19. Gave written advice on problems of store management, sent out technical advisers, and supplied accountants and managers where needed. 20. Provided one district adviser for Missouri, Kansas and New Mexico. Sent one adviser to a struggling society for two months in Pennsylvania. 21. Revised and brought up to date "The Story of Co-operation," "Co-op erative Education," "The British Co operative Movement" and other pam phlets and leaflets on Co-operation. 22. New Pamphlets published: "How to Start a District League," "Sugges tions to Store Managers," "How to Start a Women's Guild," "Co-operative Housing," "Co-operative Homes for Europe's Homeless," "Model Co-opera tive Law," "Syllabus for the Study of Co-operation.'' 23. Conducted an Employment Bu reau which supplied managers to co-op erative societies. 24. Carried on intercourse with the International Co-operative Alliance and many foreign unions, giving informa tion, opinions, and advice. 25. Sent delegates and representatives with credentials to several foreign con gresses and societies. Some of the points of progress which The League has made are as follows: CO-OPERATION 69 1. Three hundred and thirty-eight so cieties, representing a membership of 135,450 and a turnover of $40,000,000, have affiliated with The League. 2. The League has become incorpor ated under the New York State Co-op erative Law, which necessitated a few minor changes in its constitution and name. This protects all member socie ties, just as individuals are protected in their local society when it is incorpor ated, i.e., responsibility is limited to the amount of share capital, or membership fee paid. 3. The HOME CO-OPERATOR, a four- page monthly magazine, has been started and favorably received by the societies as a means for educating their member ship. 4. The League has been established in a building of its own. This gives attrac tive and permanent working quarters where regular meetings, schools for the study of Co-operation, a library, and reading rooms are free to all. 5. Five District Leagues have affil iated with The League: The Missouri, Ohio, Cleveland, Chicago, and the North ern States. Committees for the forma tion of similar Leagues have been ap pointed in a number of other states. 6. A member of the Executive Board of The League was elected to the Central Committee of the International Co-op erative Alliance by the Tenth Interna tional Congress in 1921. 7. The League is recognized by the International Alliance and by the socie ties of other countries as the authorita tive union of co-operative societies of the United States. Of the 3,000 societies in the United States two years ago, a small fraction have failed during the business depres sion of 1921 and 1922. The present hard times and unem ployment have retarded the formation of new societies. During the war new groups were starting stores every week. Many of these were mushroom organiza tions whose members were seeking only a reduction in the high cost of living. They did not long survive. Now the societies organizing under the auspices of The League show a different spirit. They proceed more slowly and carefully and give more attention to education. Those societies with a good educational foundation have survived so far. Slowly but surely The League is gather ing into its organization the substantial co-operative societies in the country. CHAIN STORE ATROCITIES Mr. Small is the Manager of the lit tle store in the town of Brooks. Across the street is the Co-operative store whose manager is a Mr. Stoddard. Small has worked for the chain company only a few months, but already he has done well by both his company and himself and family. This concern puts up its own brand of canned fruits (peaches, pineapples, pears, etc.). These cans, large size, sell about ten cents below the price for the standard brands of the same fruit. They are the same size as the cans bearing the standard labels, but they are filled nearly one-half with water. Where the popular can has twelve half peaches in it, this has eight; and other fruits are packed about the same way. Small gets from his company an extra commission on all sales he makes of these goods. He knows that eight half peaches for 25 cents is less of a bargain than twelve for 35 cents. But he also knows that 99 per cent of the American people in choosing between two cans of the same size will always take the cheaper, re gardless of what they contain. By pushing these goods he makes a tidy lit tle sum each week in addition to his regular pay. Small's company also uses small baskets as containers for potatoes, onions, and other dry vegetables. The baskets in which berries are sold are a little smaller than the regulation quart or pint baskets. But the company sells all these commodities "by the basket", not "by the bushel", or by the quart or pint. Therefore the law cannot in terfere with them. And by marking potatoes a few cents lower than the price which the co-operative across the street charges for a genuine half bushel, or by reducing the cost of a basket of berries two cents below what the co-op erative charges for a full quart of the 70 CO-OPEEATION same berries, the chain store easily draws all the bargain hunters in the neighbor hood away from the co-operative. Stoddard, over in the Co-operative Store, has recently taken steps to expose these practices. In the centre of his longest counter he has placed two Ma son jars. Into one of them he has poured the contents of a can of his own best brand of pineapple; into the other the contents of the can sold under the private brand of the chain store. Over them he hangs a sign reading: COMPARE OUR CAK OP PINEAPPLE WITH THAT SOLD BY OUR COMPETITORS. COUNT THE SLICES. MEASURE THE WATER. WHEN YOU BUY CANNED FRUIT ARE YOU PAYING FOR FRUIT OR WATER? GET WATER FROM YOUR OWN PUMP GET YOUR CANNED FRUIT AND VEGE TABLES FROM 1HE CO-OP Stoddard has also put on the end of the counter a half bushel basket and one of the baskets used across the street. Across each he has laid a two-foot rule. Standing upright in each is another two- foot rule. The visitor sees at a glance the difference between the two baskets in width and depth. On one basket he has a label "WE USE THIS AT THE CO OP". The other bears the inscription "WE BOEEOWED THIS FROM A COMPETI TOR, BUT WE USE IT FOR EXHIBITION PUR POSES ONLY. WE BELIEVE IN HONEST MEASURES AND FAIR SERVICE." The bargain hunters still flock to the chain store. But they are not so numer ous as they were a few weeks ago. And many of them are grumbling to Small, the manager. That neighborhood is get- ing an education in chain store methods. A CO-QPEEATIVE SPEAKEE AVAILABLE Mrs. M. W. Cheel, a member of the Executive Board of the Co-operative League, is leaving California for New York the first of May. She will make speaking engagements after that date. Co-operators often write to the League office asking where they can find a good speaker on Co-operation who will come and address their societies. Mrs. Cheel has been active in the co-operative move ment for almost ten years; has seen the European movement, has visited hun dreds of societies in the United States, has organized dozens of Women's Guilds for co-operative associations, and knows the technical side of store management and co-operative organization. Societies in search of a speaker and who want at the same time to have their directors or managers confer with one who has at one time or another been up against almost every co-operative problem, should write immediately to Mrs. Cheel, addressing her so that the letter will reach her by April 25 at Ontario, California. Letters should state approximate date on which writer would like to have the meeting held. Mrs. Cheel will probably spend from 10 to 20 days in covering the territory between Iowa and New York. She has already made two dates in Illinois. The League finds it necessary to ask that each society arranging to have Mrs. Cheel should contribute at least $10 toward the expenses of the trip. A STOEY WITH A MESSAGE "When the Whistle Blew," is a stir ring tale of co-operative adventure in a typical American town, written by the well-known writer, Bruce Calvert. It proved such a siiccess in The Home Co- operator that The League has decided to issue it in pamphlet form. It will prob ably be off the press within a month. In the form of a piece of fiction, holding the interest from beginning to end, it carries over a message that months of preaching would fail to impart. Local societies should try this new form of education. Copies may be had at the rate of fifty cents a dozen, or 6 cents apiece, postage prepaid. CO-OPEEATION BOOK REVIEWS A STUDY OF CO-OPERATION IN THE U. S. One of the most important pamphlets published in this country in a long time has been recently sent out by the Bu reau of Labor Statistics of the U. S. Department of Labor. It is a detailed study of the Consumers Co-operative Movement in 1920. Miss Florence Par ker, who conducted the study and super vised all the statistical work, is herself a close student of the movement both on its theoretical and its practical side. She received replies to questionnaires from 1,009 societies. In addition to the facts contained in these questionnaires, she obtained by travel about the country additional information direct from the managers and directors themselves. The information given in the pamphlet is based on this vast amount of data: 436 societies submitted financial reports of assets and liabilities; 417 submitted copies of their constitution and by-laws. The pamphlet is replete with interest ing and valuable statistics. Among the tables presented are those showing— Distribution of co-operative societies by Btates. Distribution of societies according to size. Distribution of societies according to age. Distribution according to law under which they are incorporated. Distribution according to nature of business. Distribution according to volume of business. Distribution according to surplus or loss in business. Distribution according to paid-in share capital. Distribution according to amount of loan capital, reserve and educational fund. Distribution according to amount returned in surplus savings. Detailed presentation of assets and liabili ties of each one of 303 societies at end of 1920. Relation of assets, accounts payable and ac counts receivable to capital for 303 societies. Relation of sales to merchandise and to capital for 303 societies. Detailed analysis of operating expenses in 72 societies. Comparison of operating expenses in co operative and private stores. Reasons for failures of 70 different societies. Appendix A is a careful study of the co-operative laws of the various states. Appendix B is a Directory of the Con sumers' co-operative associations in the United States. Those who are studying co-operation can make excellent use of this little book (it contains 145 pages). The digests of figures within it are taken from such a large number of societies that the aver ages given make an interesting study. It is unfortunate that in some of these tables no distinction is made between grocery, dairy, bakery, or other lines of business, for the averages resulting from such a compilation have little practical value. The statement made in Appen dix A that the co-operative law of Penn sylvania is the best in the country is inaccurate. This is probably one of the most objectionable co-operative laws. The Directory of Consumers' Societies in Appendix B is very incomplete. The League office knows how difficult it is to keep such a list up to date, and we can not blame Miss Parker for the many errors in this list, but co-operators who use it should know that they are there. Until the co-operatives of the country really rally around some kind of a cen tral federation and truly support it, there will be no really accurate and com plete figures for the entire movement. Miss Parker's work is the nearest ap proach to a complete study that has yet been published within the covers of a single volume. Those desiring copies of "Consumers Co-operative Societies in the United States in 1920" may obtain them either from the Bureau of Labor Statistics in Washington, D. C., or from the office of The League, on the payment of 15 cents per copy. From time to time we hope to publish extracts from this little book in CO-OPERATION. MOVING TOWARD GREATER EFFICIENCY "After a long and streuuous ifort, I have finally succeeded in gaining the adoption of the Co-operative League's accounting system by the stockholders of our co-operative society. I feel this is a great gain for our society, aa we only showed a very small gain in savings for over $26,000 volume of business the last six months of last year." H. E. GASKILL, Middleport, Ohio. 72 COOPEEATION THE CORRESPONDENCE FILE A NEW ENGLAND CO-OPERATIVE BAKER The enclosed is a report of the bread shipments made to the textile strikers of New England by the Co-operative Bakeries of Massachusetts. (The enclosure referred to is presented in our news columns as a report.) We have sent bread which would have cost the strikers $13,600, if they had bought it in private oakeries. It only cost the co-ops less than $8,000 to produce it, and all the money was raised by the co-ops and through our own appeals to the labor unions, labor press, and radical organizations. The strikers were supplied daily with bread. A telephone call was sufficient to let us know of their need, and the necessary supply was immediately sent there. Most of our bread went to Pawtuxet Valley, where the members of the Amalgamated Tex tile Workers were on strike. This was not due to any discrimination on our part, but mainly to the fact that Pawtuxet Valley had a wonderful system of food distribution, while Blackstone Valley under the United Textile Workers of America did not have it, but paid strike benefits instead. B. LEVINE, Manager, Labor League Co-operative Bakery, New Bedford, Mass. WITH THE KENTUCKY CO-OPERATORS I am crtainly deeply interested in the Co operative Movement, for I know what can be accomplished by this movement if the people will only act for themselves. This can be accomplished only by our people becoming edu cated along the lines of true Co-operation, which means one for all and all for one. I hope to see all co-operatives brought together under the Rochdale system in producing, buy ing, and selling. In so doing we will establish an economic system so badly needed in our country to-day in order that every producer may receive a just and equitable proportion of his products. Under our present system he can never get it, neither can it be accom plished by striking. Our only hope is through Co-operation, and it is coming. 'Big Business sees the handwrit ing on the wall. In the near future you will see them turning over to the Co-operative Movement. We must keep on with the great work we have started, as we have already ac complished much and the movement is grow ing. It is here to stay and to bring to the people that peace and good will they are look ing for. Unity of action is all that is now needed to bring prosperity to them and our nation, co-operatively owned, as the founders of our government intended it should be. It is now up to the people to say whether they shall have a lasting prosperity or not. Co operation will bring it. Therefore line up with The Co operative League, all you co-operators, for if you are not with us you are against us! J. F. RANDALL, McCracken County Co-operative Association, Paducah, Kentucky. MT. OLIVE IS FIRST OVER THE LINE Received your letter and also membership dues statement. There is no objection on the part of our local society in paying the increase of per capita tax. We all must realize our duties toward The League and assume our part of responsibilities for the good work the League is rendering in behalf of the Co-opera tive Movement in general. I just want to mention one instance where we have benefited by the information given out by the League. In past years we have paid Federal income taxes on profits or divi dends paid out to the members, but this year, having found out through the aid of the League, we have saved, by being exempted on such dividends, the sum of almost $130.00, which is quite an item. WILLIAM LORENZ, Secretary, Mt. Olive Co-operative Societv, Mt. Olive, 111." TOO MANY MANAGERS SPOIL THE STORE It is with regret that we announce the closing out of our local store for numerous reasons. As board members we had been misled by managers' reports, or lack of them, to believe that everything was O. K. After experiment ing with seven different managements in three years, we decided by unanimous membership vote to sell out the store, to clear debts and save our association name, even at the expense of the stockholders. If you know of any other co-operators in this section or towards the south, would be glad to be of assistance or advise them how to avoid serious mistakes such as we made here. Secretary, pro tern, Lake Erie Co-operative Association, Erie, Penna. RAPID PROGRESS AT SUPERIOR. We have just had two successful meetings here in Superior, a conference of Finnish co operative managers, attended by 34 managers (last year only 25), and the annual meeting of the Co-operative Central Exchange. The Exchange is going forward by leaps and bounds. In February our sales were 85 per cent more than in February, 1922. In the months of January and February we made more surplus than during the whole year of 1922. S. ALANNE, Educational Director, Co-operative Central Exchange, Superior, Wisconsin. CO-OPEEATION PUBLICATIONS of THE CO-OPERATIVE LEAGUE HISTORICAL, Ter Copy 8. Story of Co-operation .........................................................$ .10 7. British Co-operative Movement ............................................... .10 88. Co-operative Consumers' Movement In the United States....................... .08 89. Consumers' Co-operative Societies in N. Y. State, (Published hy Consumers' League). . . . ............................................................. .10 TECHNICAL 4. How to Start and Run a Rochdale Co-operative Society....................... .10 B. System of Store Records and Accounts......................................... .50 6. A Model Constitution and By-Laws for a Co-operative Society................ .05 8. Co-operative Education. Duties of Educational Committee Defined.......... .10 8. How to Start a Co-operative Wholesale....................................... .10 27. Why Co-operative Stores Fail.... ............................................. .02 3. Co-operative Store Management................................................ .10 14. How to Start and Run a Women's Guild....................................... .05 16. How to Organize a District Co-operative League.............................. .10 MISCELLANEOUS 16. Model Co-op State Law........................................................ .10 17. Syllabus for Course of Lectures, with References and Bibliography.......... .25 48. 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 84. Co-operative Movement (Yiddish).............................................. .02 PerlO* $6.00 6.00 4.00 4.00 2.50 1.00 41. 42. Farmer's Co-operation (By Benson Y. Landis)................................ .15 Co-op Homes for Europe's Homeless.......................................... .10 1.75 1.2S 43. Co-operative Bousing. .10 ONE-PAGE LEAFLETS (One cent each; 50 cents per 100: $2.60 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 Real Co-operator; (25) Resolutions Adopted by A. F. of L.; (26) Factory Workers Co-operate!; (28) Do You Know About Co-operation in Europe?; (40) Have You a Committee on Educa tion and Recreation?; (44) What Is the Co-operative Movement?; (45) Schools and Stores; (47) A Man'8 Right to a Joh; (48) Tips to Co-operators - MONTHLY PUBLICATIONS CO-OPERATION—(In bundle lots, $7.50 per hundred). Subscription, per year..............$1.00 HOME CO-OPERATOR, 4 pages..........................................................$1 per 100 INTERNATIONAL CO-OPERATIVE BULLETIN (Puh. by The I. C. A.)..........per year, $1.50 BOOKS The following hooks are recommended as containing the best discussions of the modern Co-operative Movement. They may be ordered through The League: Buhnoff, J. B.: The Co-operative Movement in Russia, 1!I17..................................$1.25 Faber, Harald: Co-operation in Danish Agriculture, 1918.................................... 2.7R 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, 1021............................................. 2.50 Gide, C.: Consumers' Co-operative Societies, American edition and notes, 1922. Cloth, $3.00; paper bound................................................................... .00 Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1818. Cloth, $2.00; paper hound. . . . . ............................................................................... .60 Howe, Fred C.: Denmark, a Co-operative Commonwealth, 1921............................... 2.00 Maxwell, Wm.: History of Co-operation in Scotland, 1910................................... 2.00 Nicholson, Isa: Our Story..................................................................... .25 Powell, G. Harold: Co-operation in Agriculture. Mncmillan................................. 1.50 Redfern, Percy: The Story of the C. W. S................................................... 2.00 Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918.............................. 1.50 Redfern, Percy: The Consumers' Place in Society, 1920...................................... 1.00 Smith-Gordon: Co-operation in Many Lands, 1920............................................ 1.50 Sonnichsen, Albert. Consumers' Co-operation, 1919. Cloth bound, $1.75; paper bound....... .75 Stolinsky, A.: The Co-operative Movement. In Yiddish....................................... 1.00 Wehh, B. and S.: The Consumers' Co-operative Movement, 1921.............................. 5.00 Wehh, Catherine: Industrial Co-operation, 1917............................................. 1.50 Woolf, Leonard: Co-operation and the Future of Industry.................................... 1.50 Woolf, L.: Socialism and Co-operation........................................................ 1.50 "The Co-operative Consumer" and "Co-operation," III (1917), VI (1920), VII (1921), VIII (1922). . . . . ............................................................................... 1.25 Transactions of Second American Co-operative Congress, 1920.................................. 1.00 Transactions of Third American Co-operative Congress, 1922................................ 1.00 The People's Year Book, 1923. Cloth, .80; paper bound...................................... .50- (Ten cents postage should be added for books which cost more than $2.00, and five cents for the smaller books.) '1 •1 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. Subscription for CO-OPERATION, $1.00. Membership in The LEAGUE, $1.00. Enclosed find $......„. for Name. Address. Date.... Co-operative Central Exchange Wholesale Grocers and Jobbers, Bakers We supply goods to Co-operative Societies ONr/¥. \Ve 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 Fiaut: Winter Street and Ogden Ave., SUPERIOR, WIS. Co-operators' I.td. Mutual Fire Insurance Co. Is now writing Insurance in State of Wisconsin The Canadian Co-operator Brantford, Ontario, Canada The organ of the Canadian Co-opera tive Movement, owned by and con ducted under the auspices of The Co-operative Union of Canada. Published monthly 75e per annum MOVING PICTURES and Stereopticon Lectures may be rented from THE CO-OPERATIVE LEAGUE 167 West 12th St., New York City 1. "Some Examples of English Co-operation." Moving pictures of factory processes (two reels). . ...........................$5.00 2. "Co-operation In the United States." With 53 Stereopticon views...........$3.00 8. "The Co-operative Movement Ira Russia." 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 thau 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. Cd. a year. The Trade and Technical Organ of British Co-operation. THE HOME CO-OPERATOR A four-page magazine for use in co-operative societies. Issued monthly, in bundles, $1 per hundred. Published by The Co-operative League Publishing Office, Willimantic, Conn. Albert Sonnichsen, Managing Editor. 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. i>. 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. 5 MAY, 1923 10 Cents VITAL ISSUES MAN SWAMPED BY MACHINERY While we Co-operators are occupied trying to reorganize society upon a dif ferent plan, it is a good thing occasion ally to leave our job, go up above the world, and take a bird's eye view of the people that we are striving to guide into a better path. When we do this we dis cover that we are dealing with a com plex situation. It is easy to see that machinery has developed faster than the human intel ligence. Man has not kept pace with his own mechanical creations. The peo ple have reached a saturation point in their ability to take care of mechanisms and their products. Here is a man driving a motor car, propelled by explosive gases and elec tricity, or flying through space at the rate of two miles a minute. But the in tellect at the throttle is often that of a cave man, who less than ten generations back had no conception of a vehicle faster than a dugout canoe. No wonder people get hurt. Airplanes, rapid-fire guns, and poison gases are dangerous things to be in the hands of simple folks. This is evidenced by the fact that a few years ago they obeyed orders and started hurling these things at one an other,—with the result that ten million of them were killed. We see people with powerful devices in their hands, but they have not the intelligence or the training to use them advantageously in their own interests. The products of science and invention now threaten to destroy them. While mechanical devices are being produced beyond man's power of con trol, the same is true of our social ma chinery,—the political state. Man has no effective control of this great organ ism. What makes the matter still worse, he thinks he has. The individual is becoming less and less expressive. Centralized power, with its propaganda and control of opinion, overwhelms him. Governments can now do things of which the majority of cit izens disapprove, yet the people seem powerless. Man is becoming swamped in his own political complexities. The hope lies in a democratic organ ization of society which can develop ex perts and executives to administer the machinery of industry and of society in the interest, not of any privileged class, but of the democratic mass. To this the Co-operative Movement adds an economic method that results in people working together for their mutual good rather than in opposition to one another. Unless the people can organize them selves, and get into their hands the con trol and determination of their own fate, the future of mankind is wrapped in hazardous uncertainty. J. P. W. 74 CO-OPEEATION "WHERE DO WE GO FROM HERE?" '' Oh boy, oh joy, where do we go from here?" was the chorus of a happy-go- lucky war song which many a regiment of American soldiers sang on their way up the gangplanks of the transports that took them over to the battlefields of Europe. The whole world now seems to be singing this song, though in a minor key, while walking off a plank into a sea of destruction. For all trained observers of the world to-day, political and eco nomic, are agreed that we are on the brink of terrible possibilities. Impartial economists regard most countries of the world as insolvent. The cost of the Great War has burdened those who survived the war's murder and destruction with staggering debts that can never be paid. The February Bulletin of the National City Bank of New York contains astounding figures on the national debts of the principal countries of the world. Austria, which in 1913 had a national debt of 7,313,000,000 crowns, in 1922 owed 1,437,568,000,000 crowns. The national debt of Germany mounted from 5,017,000,000 marks in 1913 to 1,559,- 000,000,000 marks in 1922. France, one of the "victors" of the war, had a na tional debt of 316,984,988,000 francs in 1922, as against one-tenth that amount in 1913. Italy increased its indebtedness during that time seven-fold, while Bel gium's national debts rose to almost ten times the pre-war figure. Great Britain, too, multiplied its burden of debt by ten times the amount of its obligations in 1913. Even the United States, which suffered less than most nations the effect of the war, increased its indebtedness from $1,029,000,000 in 1913 to $22,665,- 000,000 in 1922! In the meanwhile, the value of the currency of the principal countries of Europe has depreciated so much as to be almost worthless, compared with pre war standards, in proportion as the stock of paper currency has increased. Although the production of new gold in 1922 was the smallest for the past twenty years, according to 0. P. Austin, statistician of the National City Bank, the paper currency issued by most coun tries reached staggering proportions. "The world's note circulation", says Mr. Austin, "outside of Russia, to-day aggregates 10 times as much as one year ago. Russia's total is 40 times as much as a year ago; Germany 35 times, Aus tria 17 times, Poland 4 times, and Hun gary 3 times as much as one year earlier." France in 1914 had 3,730,- 000,000 in gold francs to secure 5,812,- 000,000 paper francs in circulation. At the beginning of 1923 its gold stock had decreased to 2,671,000,000 francs, while its paper francs in circulation had grown to 37,055,000,000. While the gold stock of Germany had dwindled from 1,314,- 000,000 marks in 1914 to 1,005,000,000 marks at the beginning of 1923, its paper currency grew during the same period from 2,014,000,000 to 3,871,788,000,000 marks. Even Great Britain exhibited alarming tendencies. In 1914 it had 40 pounds in gold for every 29 pounds in paper issued; at the beginning of 1923 the balance had turned, and there were 40 pounds of paper issued for every 15.5 pounds of gold. The National City Bank attributes the increase in paper currency, and conse quent depreciation in its value, to the extravagant habits of governments. Nations are spending far more than they can collect from their subjects. War time armies have not been reduced ap preciably, and government payrolls are met by speeding up the printing presses which are turning out practically worth less paper money. The workers of Europe find that their wages in the be ginning of 1923 are worth only one- tenth of their value a year ago. And the end is not yet. Unemploy ment in Great Britain threatens the peace of even that country, where labor leaders dine with the king. The inva sion of the Ruhr by France has again let loose hatred and the lust of militarism among nations already on the brink of ruin as a result of the late war. No man knows where the world is bound for, in its mad steeplechase over the precipice. We can only hope that the spirit of Co-operation between the peoples of all nations may yet avert the cataclysm which threatens civilization itself. H. R. CO-OPERATION 75 "UPLIFT" vs. JUSTICE "The rich will do everything for the poor but get off their backs", said a wise old cynic, who no doubt knew all about the "welfare work" in large industrial corporations. A report issued by a labor union in Great Britain, which has em ployees in private business organizations and in co-operatives, is a scorching in dictment of the hypocritical attitude of private firms that "uplift" their em ployees with one hand and exploit them with the other. A striking contrast is offered in the report issued by the Na tional Union of Distributive and Allied Workers, between treatment afforded employees by the soap trust of Great Britain and the conditions of work of the employees of co-operatives. "Our experiences in the soap trade have been most intolerable", says this report. "Eighty per cent of the coun try's trade is done by a well-known combine which has used every available lever to maintain its profits at the ex pense of the worker and the consumer. Although the Government inquiry in the trade showed up the firm in a bad light, it was unrepentant. This combine of associated firms has, whilst booming profit-sharing on the one hand, with the other imposed wages reductions against the appeals and the arguments of the workers.'' Compare this with the conditions of employees in the soap factories owned by the Co-operative Wholesale Society. The report states: "Our membership in the C. W. S. soap works remains dis tinctly good. We are pleased to report that in this field of their operations the society have not followed the practice of the combine by imposing cuts in wages. Satisfactory negotiations have taken place and agreements ratified which give our members rates of wages shillings per week higher than those paid by the combine." The soap trust provides recreation facilities and carries on "uplift" work while cutting the already inadequate wages of its employees. The co-opera tive soap factories pay the highest wages in the trade; they encourage unionism, and permit the employees to own their jobs by being members of the co-opera tive society, which owns and controls the factories. The difference is that between charity and justice. H. R. HUMPTY DUMPTY CO-OPERA TIVES Humpty Dumpty has proved an in teresting puzzle to many other people since all the king's horses and all the king's men gave up their famous at tempt to put him together again after that terrible fall. Several thousand co operative Humpty Dumpties have fallen off the old wall during the past 80 years in the United States. Back in the seventies of the last century there were hundreds of nourishing societies in America and practically all of them failed. Twenty or thirty years ago there were hundreds more, and they failed, too. Since 1900 hundreds of others have gone to pieces. There was good reason for failure dur ing all those dreary years, for there was no national clearing house for informa tion, no established technique of organ ization, management, financing, account ing. Every society was a lone lamb in the midst of a pack of wolves, and in time of trouble the feeble bleat for help merely served to whet the appetites of the hungry animals that stood waiting for a chance to pounce. During the last few years there has been no excuse for such isolation by co-operatives. The na tional federation, The Co-operative League, has circularized times without number practically every society in the United States. They all know the League exists, and those that refuse to help strengthen it or seek advice from it when hard times come have little reason for blaming anyone but themselves. But to return to Humpty Dumpty. In many parts of the country there are societies which do not join the League, do not reply to letters, do not keep up any form of contact. Then, suddenly we begin to get long and con fidential communications. The A. B. Society or the Y. Z. Association is in trouble. Will the League analyze the enclosed financial statement? Will the League recommend a new sure-fire, guar anteed all-wool manager? Will the 76 CO-OPERATION League send an adviser who will straighten them out at once? The League invariably tries to go to the help of these societies. And almost invariably it finds a Humpty Dumpty fallen off the •wall. Liabilities of from $5,000 to $15,000 in excess of assets, an incompetent or dishonest manager, an unkempt and frowsy store, "with almost no trade left, a discouraged membership, and creditors thumping at the door. Often the directors and members them selves know that their society is ready for the priest and the undertaker, but they put up a bold front to the League as though to say, "Now, then! Show us what you can do. Bring on your magic and save our store." The League's staff has no magic. It is composed of ordinary human mortals. It does not piece together broken eggs, especially after they have been scram bled as well as smashed. During the past two years there have been dozens of these appeals for help come into the League office, and not more than one or two of these societies have been saved. The co-operatives of the country will not find salvation by crying for help when they are just top pling off the precipice. Salvation can come permanently to the movement only as the societies unite in a cohesive fed eration and contribute something to its wisdom and its work. "Oh, but 'Humpty Dumpty' is only a Mother Goose rhyme, a fairy story," they say. Don't let them fool you. We are will ing to stand the four lines of this jingle up against any verse in Scripture. They are Gospel truth. C. It. LABOR BANKING Report Presented to the Third Co-operative Congress by W. F. McCaleb The high purpose before those of us who are interested in the development of the co-operative idea in the banking field is to bring to our brothers, gener ally, a realization of the power they hold, if they will but take control of their own credits. That means control of credit mechanisms—banks, trust com panies, building and loan associations, credit unions, etc. At the moment it seems that the banking phase of the great co-operative movement overshad ows all other developments in impor tance, for it means the use of capitalistic and competitive weapons already forged to demolish the edifice Mammon has erected for the purpose of gain, and to erect in its place a fair social structure consecrated to a more even development of the race and a wider participation by all in the good things nature has pro vided for our sustenance and pleasure. You, doubtless, are familiar to a de gree with the accomplishments of small groups of workers, or others with a sim ilar background in the matter of relig ion, fraternalism, nationality, etc., in the development of mutual loan societies, known as Credit Unions or People's Banks. It is only of late in this country that the co-operative idea has bitten irto commercial banking, and it appears desirable to enlarge on this development at the outset because of its influence in developing the possibilities of co-opera tion. A large number of the smaller type co-operative financial institutions, the Credit Union, or People's Banks, most certainly will come with an in crease in the number of commercial banks. It may be well at this time to go into some details touching the Brotherhood of Locomotive Engineers' National Bank of Cleveland, for the example of that in stitution has had a far-reaching effect. On November 1, 1920, the Brotherhood of Locomotive Engineers' Co-operative National Bank opened its doors, and while its resources on that day only amounted to $650,971.77, they are to day (October, 1922) more than $19,- 000,000. Usually banks lose money on their operations for the first twelve months, but the B. of L. E. Bank actually paid a dividend of 6 per cent to stockholders, and a savings dividend of 1 per cent to CO-OPEEATION 77 savings depositors. This was again du plicated for savings depositors for the six months just closed, and a dividend of 5 per cent was paid stockholders cov ering period from November 1, 1921, to June 30, 1922. In addition to this, at the close of the first year's operations $25,000 was added to the surplus and on June 30, 1922, another $10,000 was placed in that account, making the paid- in capital, surplus and profits to-day $1,300,000. When the Brotherhood Bank organ ized it was decided to operate as a na tional bank, and the institution is now functioning under the National Bank Act. While legal limitations prevent the bank from being wholly co-opera tive, yet in most essentials it is so. Divi dends are limited to not more than 10 per cent in any one year and the stock holders have agreed thereto. Provision has been made for distribution of earn ings among depositors in proportion to the value of their accounts with the bank, this after taking care of dividend requirements, surplus, etc. Under the present financial system it seemed necessary, in order permanently to secure the control of the institution to the workers, that participation in owner ship be denied those outside of the or ganization; 51 per cent of the stock is owned by the Brotherhood and 49 per cent by members of the Brotherhood. A further precaution taken to insure the stock remaining in the hands of the group of workers originally setting up the institution is the provision that stockholders may not dispose of their shares except through the Purchasing Committee of the bank. One of its cardinal doctrines from the beginning has been that so far as might be consistent, support be given the farm ers and workers in general. This policy has been pursued steadfastly. The B. of L. E. Bank loaned to the Bank of North Dakota in round figures $100,000, this being made up in the form of a loan of $50,000 to the bank, and the purchase of $50,000 of their bonds. Loans also were made to a number of agricultural banks in the West, and the Wheat Grow ers' Associations were supported. To this day no regrets have been experi enced by reason of these actions—the Bank of North Dakota retired its $50,000 loan, and the smaller banks in the West conducted themselves as well as they could in the terrible state of depression overwhelming all agricultural districts. In short, the operations of the Engi neers' Bank have brought its manage ment the satisfaction of having served an oppressed people, and at the same time not a cent has been lost in doing so. The B. of L. E. National Bank of Cleveland came into conflict with the Clearing House Association of the city, that organization having through the public press of the city issued an ex travagant advertisement for almost a week condemning all banks not associ ated with it and which failed to display its membership sign, the so-called '' Sign of Safety". The officers of the bank were of one mind in the matter, and re plied vigorously to the attack, challeng ing the Clearing House Association to come out into the open and lay their cards on the table so that the public might be fully advised as to the under lying basis on which it functions. Since the date of the reply of the Engineers' Bank the Clearing House has not so much as murmured, although the reply deliberately charged lliat they are a monopoly, organized to support a capi talistic group of bankers dedicated to the purpose of fixing minimum rates of interest to be paid to depositors and fix ing the fees and interest charges which are to be levied on borrowers. The charges are all too true and the Clearing House is well aware of it. Now, to go into a brief discussion of the effect of the example of the Brother hood Bank in the matter of stimulating the organization of other like institu tions throughout the country and the spread of co-operative banking. On February 1, 1921, against a very considerable opposition on the part of the banks already established, the Co operative Bank & Trust Company of Tucson, Ariz., with a capital of $70,000, opened its doors, and is bearing the beacon for that section of the country. On October 17, 1921, the Brotherhood of Locomotive Engineers purchased con trol of the People's State Bank of Ham- mond, Indiana. It was then a member of the local Clearing House Association 78 CO-OPERATION and as such paying 3 per cent on savings deposits, and subscribing to all the other rules and regulations designed to give the depositor as little as possible for his money. Application was immediately made to change the name to "The Peo ple's Co-operative State Bank of Ham- mond", which was granted; a sign, "4% Paid to Savings Depositors", was hung in the window, and a similar profit sharing policy to that the Engineers' Bank in Cleveland was announced, all of which resulted in an immediate ex pansion of the resources of the institu tion, increasing its field for usefulness. All this was too much for the Clearing House banks, and they took immediate action to expel the recalcitrant institu tion from their midst, which was done; but without harm to the insurgent, for its totals have continued to expand. The assets of the Hammond bank have been multiplied by three since we took con trol of it. Totals are now in excess of half a million. February 1, 1922, the Producers' and Consumers' Bank of Philadelphia, Pa., opened its doors with totals of $155,- 831.22. It was criticised on the score that it was operating under a deed of trust; therefore, after some delibera tion, it was decided to make application for a state charter as a trust company, which was granted May 23, 1922, on a capital of $200,000. It is expected that very shortly the reorganization will be completed. Its total assets are now about one million. In April, 1922, we made a trip to San Bernardino, Cal., to assist a local group of workers to take over the San Bernar dino Valley Bank, the oldest savings in stitution in the county. It was found that the Valley Bank was in good con dition, and through the assistance of the Brotherhood Bank of Cleveland in ad vancing funds to cover the transfer of the stock, the deal was consummated. Since this occurred steady progress has been made; a branch has been opened in Barstow, negotiations are under way to increase the capital from $50,000 to $500,000, and it is planned to have branches in all the important California cities. The San Bernardino Valley Bank has been active in disposing to workers of the stock taken over, and it will not be long before the loan extended by the bank in Cleveland will be liqui dated. Despite the strain of the rail road strike, the patrons of the bank have stood by it, an indication of the awaken ing of workers to the importance of Co operation. The totals of this bank have increased since we took it over by $100,- 000, while every other bank in San Ber nardino has lost. April 25, 1922, the Amalgamated Clothing Workers of America obtained permission to open their own bank in Chicago, and proceeded to dig themselves in at 371 W. Jackson Boulevard under the name of "The Amalgamated Trust and Savings Bank", with a capital and surplus of $300,000. This institution is operated along the lines under which the Engineers' Bank functions. They pro pose to open branches throughout the city. They have now passed the million mark in assets. A charter has been granted by the Comptroller of the Currency to The Transportation Brotherhoods' National Bank of Minneapolis, the preliminary work being in the hands of officers of those organizations located in that city. The charter was granted on June 24, 1922, and the bank will open its doors December 1. The Order of Railroad Telegraphers will open a national bank in St. Louis on April 1, 1923. The bank will have a capital of $500,000, with a paid-in sur plus of $50,000, and will closely follow the line of the Engineers' Bank in Cleveland. A member of the B. of L. E. living in Birmingham, Ala., began agitating a workers' bank for that city shortly after the Cleveland bank started out. The bank, known as The Federated Bank and Trust Company, has an authorized capital of $125,000; surplus of $12,500, fully paid. The State Federation of Labor, as well as the local Central, are actively supporting the project. On October 1, 1922, this bank opened its doors. The total assets to-day approx imate a quarter of a million dollars. Among the cities where the example of the Cleveland institution has been felt is Pittsburgh. Labor leaders have been .active there in organizing the Brotherhood Savings and Trust Com- CO-OPERATION 79 pany. A charter has not yet been granted, but stock is being subscribed and it is not anticipated that a great length of time will elapse before this will have been taken care of. The pro posed capital is $500,000, shares of a par value of $100, subscriptions to be paid in at $110 per share in order to accumu late a surplus. No individual will be al lowed to subscribe for more than ten shares. Youngstown, 0., also is represented in this growing family, for a group there has been granted a national charter. In May, 1922, the Brotherhood of Railway and Steamship Clerks, Freight Handlers, Express and Station Em ployees held their convention at Dallas, Texas, and authorized their officers to proceed with the building of a co-opera tive bank. Action, however, has been delayed on account of the railroad strike; but it is only a question of a short time until another workers' bank will be built in Cincinnati. The time is ripe for a wide growth of labor banks—all that is needed is per sistence and efficient administration of these projects throughout the country. Inquiries have been received from the following places as to steps that should be taken to organize labor banks, and the fact that they are so widely scat tered speaks loudly of the thought that is being given to-day to the matter of control of credits: Arkansas—Little Rock, cotton plant; Alabama — Mobile; California — San Francisco, Sacramento, Dunsmuir, Oak land, Oroville, Lost Hills; Colorado— Denver; Georgia—Glennville; Florida— Miami; Indiana—Peru, Elkhart, Ft. Wayne, Indianapolis; Illinois—E. St. Louis, Tevey; Iowa—Burlington; Kan sas—Arkansas City, Topeka, Wichita, Concordia; Kentucky—Somerset; Mon tana—Livingston, Miles City; Michigan —Port Huron, Jackson, Owosso, Grand Rapids; Maryland—Baltimore; Missis sippi—Eret, State Line; Missouri—Han nibal; Pennsylvania—Harrisburg, Ches ter; Oregon—Portland; Oklahoma—Ok lahoma City, El Reno; Nevada, Sparks; North Carolina—Raleigh, Greensboro; New Mexico—E. Las Vegas; Ohio— Sandusky, Akron; New York—Buffalo, Ithaca, Rochester, Utica, New York City; South Carolina—Florence, Green ville; Texas—Dennison, Paris, Fort Worth, San Antonio, El Paso; Tennes see — Nashville; Virginia — Richmond, Roanoke; West Virginia — Bluefield, Huntington; Washington — Spokane, Seattle; Wisconsin—Milwaukee, Green Bay; Wyoming—Cheyenne. The Chief Executive of the Brother hood of Railway Carmen of America has developed interest in the co-operative program and it can be said that it is but a question of time before that or ganization will take its place among the forces now pushing the co-operative line forward. Samuel Gompers, President, and Frank Morrison, Secretary, of the Amer ican Federation of Labor, as well as others high in the councils of that great league, have definitely stated that they are of the opinion that workers' banks will be a great factor in the overthrow of the powerful financial barons whose sole end is the satisfaction of greed; and they have also said that it is quite pos sible such an attack would be the most strategic of all the sorties heretofore made. From results following in the wake of the organization of the Brotherhood of Locomotive Engineers' Co-operative Na tional Bank, it seems those in favor of Co-operation stand to gain most by spreading their doctrine through the working classes, and by enlisting the workers' organizations to get behind it and establish their own units. In closing, it is recommended that wherever it is desired to start a co-opera tive financial unit of any kind, search be first made for competent men to handle its affairs, and when they have been found diligent, that effort be made to collect the necessary capital, or to pro vide for its collection with certainty. It does not appear wise to further an or ganization of any form that does not provide for examination from an out side source. This is essential so that each organism will be protected from decay and degeneration on the inside, and live a healthy life. The method of organization of Credit Unions and co-operative financial insti tutions will differ greatly according to 80 GO-OPERATION the membership and place of location; but all caution should be used to see that there is a real field for the activities of any unit and a necessity for its services. Great care should be used in the matter of limiting expenses, and where the in stitution deals in matters of moment, competent assistants should be secured, regardless of whether the employees are members of the particular group under taking the construction of the bank or not; but diligent care must be exercised to see that they are sympathetic with the purposes and ideals of the Movement and loyal thereto. Finally, this Congress should express its will in the matter of setting up a clearing house of information and ser vice in the matter of providing bank ad ministrators and workers for the great work of the financial rehabilitation of our country. THE EFFECT OF STRIKES ON CO-OPERATIVE STORES By T. D. Stiles, President, Penm Central Co-operative Association Co-operative stores are generally gro cery stores. It is well known that the grocery business is a very precarious one. Practically all of the elements of business uncertainty enter into the grocery business. Co-operative grocery stores are of course subject to business conditions the same as other grocery stores. But co-operative groceries not located in industrial centers, especially when fostered or partly financed by labor unions, are subject to the special diffi culty of industrial strikes. As a rule, such co-operatives are owned and sup ported by wage workers. After a strike has been on for a short time, the question of the co-operatives giving relief to the strikers is soon raised. Relief is money paid by labor unions to members during a strike. Part of the co-operative message is that the move ment is a part of the labor movement and will assist its membership in time of strike. Naturally the members expect the co-operative to give them assistance when the time of need arrives. Few co operative groceries are financially able to give much assistance in the way of relief. The strikers do not have a busi ness training and do not know the finan cial weakness of their little store. And even if they were aware of this, "every thing possible must be done to win the strike." The winning of the strike is the more immediate problem, and if by sacrificing their store they can strengthen the fight, they will unhesitatingly do it. How labor organizations can foster co operatives, and the co-operatives can, when the need arises, support the labor union, has been beautifully worked out theoretically. But in its application we meet with many unexpected practical problems. The experience of the co operatives in Central Pennsylvania dur ing strikes has been unusually rich in this respect. We have organized stores where a strike was on. We have had strikes called after the store had been in successful operation for some time. We have had general strikes that af fected all of the stores. A co-operative store was organized in Janesville in the heat of a strike. This was done contrary to the advice of the organizer. The strike was on. Labor sentiment was running high but funds were very low. The workers being on strike did not have much money. It was possible to raise only twelve hun dred dollars to start the store. This was not sufficient. The members knew it, but expected to make up in zeal and loyalty what they lacked in capital. Under an efficient management proba bly this would have been possible. But the minds of the members were fixed upon winning the strike. There were new excitements every day. It was im possible to get them to study the prin- CO-OPERATION 81 ciples of co-operation. When it came to selecting a manager, a strike leader who was blacklisted and without a job was chosen. He was a fine type of a man, very popular as a strike leader, but his popularity was of no value in run ning a store. Changes were made in the manage ment which brought about an improve ment. The store was on a fair way to success when the strike began to wane. The strikers began to move from town. They had a chance to sell their store. They did so and this closed one co-opera tive sacrifice in the interest of a strike. At Clarence, Pa., a co-operative store was organized and entered upon a career of almost phenomenal success. The store was very prosperous from the be ginning. About a year after the store was opened a local strike was called. The United Mine Workers of America gave relief to the strikers. All of this relief went through the co-operative store. The store continued to prosper in a degree that was almost unbelievable. Within three years they had returned to their members in dividends over seven thousand dollars, which was about the amount of their capital investment. In addition to this, they had paid for a building seven thousand five hundred dollars. They had a surplus in the bank of ten thousand dollars. We know of no co-operative store in America that has been able to equal this record. Then a general strike was called, which caused the United Mine Workers to withdraw the membership relief from Clarence. Then the store began to carry its own relief. About two hundred members needed assistance. Probably the fact that they had a large surplus caused them to distribute relief rather freely. But soon their surplus was gone and they found themselves in financial difficulties. The store is still in operation and the strike is also still on. And at the pres ent time it seems to be a race between the strike and the co-operative as to which shall end first. The strikers are at present receiving a small amount of relief but the store has lost all the ad vantages gained by its past successes. A store was organized at Berlin, Pa. This is a mining town, at the time partly union and partly non-union. No dis crimination being made, many of the non-union miners took stock in the co operative store. When the national miners' strike was called on April 1, 1922, all of these non-union miners joined the U. M. W. of A. and came out on strike. At the time the settlement of the national strike was made the union waa unable to reach an agreement with these local operators. Many of the newly or ganized men were forced to go back to work as non-union men. This store had been very successful up until the time of the general strike. Then it under took to extend relief to the extent of about four thousand dollars, and before the ending of the general strike, they were in financial difficulties. We have succeeded in making a considerable im provement in their affairs, and the store is now fairly prosperous. But there is much dissension among the members, owing to the fact that it is partly union and partly nonunion and there is much bitterness between these factions. This bitterness is the cause of much dissension within the co-operative association. Proper direction can, in such cases, usually bring about a favorable read justment of affairs. General strikes do not have as destructive effect upon co operatives as local strikes. The reasons for this are—local strikes generally last longer, and during a general strike, there is more interest and enthusiasm and more leniency on the part of creditors. Our first general strike was in 1919. Practically all of our stores were in prosperous condition at that time. The members were also prosperous as min ers' prosperity counts. True there was considerable need for relief and as a rule, the co-operatives extended it where there was need. The strike lasted only a few weeks and all the stores quickly recovered from its effects. In 1922, a general strike was called on April 1st. Work in the mine as well as other industries in Central Pennsyl vania had been very slack for a long tune previous. The stores had suffered somewhat from this slack work, and few of the members were in condition to stand a long drawn out strike such as 82 CO-OPEKATION this proved to be. Almost immediately, demands upon the co-operatives were made by their membership for relief. Practically all of the stores granted it. Some carried it to the danger point. All suffered severely. The strike was fol lowed by unusual slackness of work. A condition which still continues, and the slightest improvement in work would make their future secure. The amount of actual aid given to strikers during this strike will never be known. It was extended in so many dif ferent ways that it is impossible to trace it. Sometimes it was given in the form of donations; generally in the form of extended credit. Owing to the lack of work after the strike, few of the mem bers were able to pay what they owed the store. Most of the stores had gone in debt for the goods which they gave to their members on credit. Of course a part of the bills due these stores will never be paid, but the larger percentage of them will be paid sometime in the future. The most difficult problem that this condition raised was the question of the stores keeping up their stock of mer chandise. The demands of their trade were greater than their ability to pay. Another serious effect was the interfer ence with the established plan of doing business. Most of these stores had been operating on a cash basis and the change to a credit basis, then back again to a cash basis was a severe test upon their business organization. This brief description of a part of our experience in strikes gives some infor mation on three interesting subjects. First: Does it pay labor organizations to establish co-operatives as an aid to strikes? It does. It gives them some elementary training in business which is of value to them in every department of the labor movement. It enables them to lay up a stock of merchandize which if necessity requires, can be used in sup port of the strike. Second: Is assistance from labor or ganizations a desirable thing for co operatives? From a strictly business viewpoint, no. The stores would be bet ter able to protect themselves during strikes if they had no connection with the labor movement. If considered as a part of the general education of labor, decidedly yes. It shows to labor, the necessity for entering into business to protect their interest. It diffuses more or less throughout the entire member ship, knowledge of the need of business education. This knowledge can and will naturally mould itself into co-operative sentiment. So in the end, losses by co operatives in strikes, money spent by labor unions in the establishing of co operative education is merely money in vested in the labor movement with edu cational gains that guarantee future financial dividends. Third: Is it a wise policy for labor unions to confine membership in co-oper atives to their own members? Decid edly no. A true co-operative movement is a community institution, and though at first glance, it might look philan thropic on the part of a labor union to use its funds for educating the public in co-operation, I know of no better medium of carrying the message of labor to farmers, professional men and workers of the unorganized crafts. And often so-called outsiders bring more than sufficient help and knowledge into the movement than will recompense the labor union for its efforts. This is particu larly true during strikes. The close as sociation in the co-operative movement of union men with others, form contracts which are of immeasurable value to both parties. In conclusion we would say that we have no desire to divorce the co-opera tive movement from strikes as long as strikes exist. It is true that strikes add some troublesome business problems to the co-operative store, but in their pres ent state, they are more of an educa tional institution than a business one. They make an elementary school of economics in which all who eat are obliged to study, A sound co-operative movement cannot be established with out the help of a live labor movement. And a progressive labor movement will support and encourage the co-operative movement. The two are inseparable and their future success depends upon them traveling hand in hand. CO-OPERATION 83 FOREIGN PROFESSOR GIDE ON THE RUHR INVASION The invasion of the Rhine has not been carried on solely for the purpose of collecting the deficit in the delivery of coal due France—which could only have been a legalistic pretext—but has been due to the irritation of the French peo ple who believe that they have been trifled with by Germany. They realize that for four years France has been obliged herself, at her own expense, to re pair the devastation of the ruined re gions. France has already spent for this purpose 100,000,000,000 of francs. French people think that since they have been able to raise this amount of money, that the Germans should have been able to find an equal amount. They believe that the German industrialists have earned many billions, which they have hidden in American, Swiss and Dutch banks for the sole purpose of concealing them from their creditors. And I believe this also!* Nevertheless, personally I condemn the occupation of the Ruhr and even the occupation of the Rhine provinces, and I have written many articles in pro test against this policy, for the reasons that follow: 1. Because the occupation of the Ruhr is not only for the purpose of seizing property (this might be justified) but because it implies necessarily forcible measures to be taken against all the population, which naturally provokes in return acts of violence on their part— a policy odious to all free spirits. "When it is said that the Germans have done even worse in those regions which they occupied during the war, we em phatically refute this argument; for it is precisely because we have publicly condemned these methods by Germany that we must have the strength on our part not to imitate them. 2. Because from the financial and economic point of view this policy ap pears to us to be absolutely ruinous, equally for France and for Germany, for by diminishing the economic re sources of the latter, it makes it still more difficult for her to carry out her reparation engagements. 3. Because with this policy we alienate the sympathies of the majority of the countries, which should have more value to France than billions. This opinion which I am expressing is that which is held by a large part of the French population, not only among the working class, but among the intel lectuals. But many believe it to be their duty to keep silent for reasons of pa triotism, in order not to increase the difficulties of their government. In the January congress of the Central Committee of the National Co-operative Federation, I offered a motion that this question of German indemnities, as well as all international debts should be sub mitted to the League of Nations. This motion has been adopted with some modifications. CHARLES GIDE, Member Board of Directors, Co-operative National Federation. * (Editor's Note:—There is another aide to this question. On April 1, 1921, the French Ministry of the Liberated Regions officially announced that it had received offers from the German Government, for materials for re construction, including lumber, industrial ma chinery, and other materials valued at thirteen billion francs. According to the "Temps", these offers were for the most part rejected, because they named too high a price, "and particularly because the supplying of the ma terials had been reserved to French industry". Again in July, 1922, Hugo Stinnes, the Ger man industrial magnate, representing a com pany of German capitalists, negotiated with the General Confederation of Co-operatives for Reconstruction of the Devastated Regions, for the delivery of reconstruction material valued at billions of gold marks. Marquis de Luber- sac, President of the latter society then an nounced: "Our Government still encounters opposition to this method of payment from some French industrialists, who argue that in this critical time they have the right to hope that the market of the devastated regions will be reserved for them." It appears then, that French industrial magnates have been coolly opposing all offers of delivery of reconstruc tion material by Germany, in order that they may reap the profit of supplying those ma terials themselves. Certainly the French are not without guilt in obstructing the efforts of the Germans to reconstruct devastated re gions. ) 84 CO-OPERATION NEWS AND COMMENT SENATORS STUDY CO-OPERA TION ABROAD Two United States Senators, mem bers of the Farm Bloc, are so interested in the Co-operative Movement that they are planning to spend the summer in Europe, studying co-operative enter prises in many lands. Senator Smith W. Brookhart of Iowa, who introduced a bill on co-operative banking in the last session of Congress, is to make a thorough study of the British Co-opera tive Movement, as well as the co-opera tives of the Continent. Senator Brookhart is an enthusiastic advocate of Co-operation. At the close of the last session of Congress, he gave the following message to official Wash ington, through the columns of the Washington Post: "It must be writ ten that the statesmanship of the past has brought us to the verge of destruc tion. The common people of the world look over this situation, and then say statesmanship has failed. Through it all, they view one great economic de velopment and point to it as the hope of the future. This is economic Co-opera tion. It is the same simple system of business invented by the 28 poor flan nel weavers of Rochdale.'' Senator B. K. Wheeler of Montana, a liberal, has already started for Europe. Before sailing he stated: "I expect to go to Europe for two or three months for the purpose of studying conditions in England, Denmark, Italy, Germany and Russia. I am particularly anxious to study the co-operative system of marketing for the farmers in Denmark and the Rochdale system in England." These younger and more progressive of the Senators have read all about Co operation in Europe; now they are going to see for themselves. And their follow ing among the other members of the Farm Bloc is increasing every month. Co-operation is going to take a boom in progressive political circles during the next few years. SOO CITY CO-OP PROSPERS A saving equal to 54 per cent of the capital stock subscribed was made by the Soo Co-operative Mercantile Asso ciation of Sault Ste. Marie, Mich., dur ing 1922. This thriving association, affiliated with The League, conducts a main store and bakery, and, in addition, four branches. The combined business last year was $295,186, on which it re turned $16,145 to stockholders and em- ployeea. Since it was organized, in 1913, the total sales of the association have amounted to $1,360,066, on which the sum of $44,918 was returned to stock holders, customers, and employees. This is equivalent to almost double the amount of the capital invested. The Soo Co-operative owns its own main building and warehouse, and it has a reserve fund of $13,059. Its bakery business is bigger than that of all the other bakeries in town combined. Gro ceries, coal and meat are also sold. This co-operative is combating the popular no tion that mixed nationalities cannot work together in harmony. Among the nationalities represented in this co-op are English, German, French, Swedish, Finnish, Irish, Danish, and other co- operators, united on the program of Business for Service. MORE CO-OPERATIVE EDUCA TION The Franklin Creamery of Minne apolis is determined that the employees in the service of the Co-operative who want to know more about the movement in general and their own jobs in par ticular shall not lack for opportunity to learn. A short course of ten weeks has been started and the teaching force will be built up from some of the best co-op erative technical experts of the North ern States. The workers will learn in these classes why milk is pasteurized and how; the best methods of handling and transporting milk to the consumer; the responsibilities of the dairy employee to the public; the problems of management and administration of milk distribution, etc., etc. GO-OPERATION 85 ACTIVITIES OF DISTRICT LEAGUES NORTHERN STATES CO-OPERATIVE LEAGUE A meeting of the Board of Directors of the Northern States' Co-operative League was held in Minneapolis, Minn., on the 15th and 16th days of March, At this meeting a definite date was set for the opening of the Training School for Co-operative Employees, which is to be held in Minneapolis under the aus pices of the N. S. C. L. The school will open on the 4th day of September, 1923 (the day after Labor Day). While it was originally planned to hold the school this spring, the Board of Directors deemed it necessary to allow more time for advertising the school, as well as for the prospective stu dents to prepare themselves better for the school through previous study. The school is scheduled to last five weeks, closing October 6th. A tuition fee of $20 will be charged each student. The instructors at the school will be men who are thoroughly versed in the sub jects to be taught and who have previous experience in similar work. The Board of Directors of the North ern States' Co-operative League, at their Minneapolis meeting, also decided to issue 10 scholarships of $20 each, to be given upon application to all those who either can show merit in work done for the Co-operative Movement in this country or who are anxious to do such work in the future. Applications for these scholarships should be addressed to the Secretary of the Northern States' Co-op. League, whose address is: P. O. Box 147, Su perior, Wis. While the proposed school, which is to be held in Minneapolis next fall, has been termed above a "Training School for Co-operative Employees", this should not be misconstrued to mean a school for training of those only who are at present employed by co-operative concerns. In determining the qualifica tions of those who are to be admitted as students of this school, the resolution adopted by the last annual convention of the League reads as follows: "That anyone ambitious to educate himself so as to more efficiently serve either the Co-operative or the Labor Movement, and who has the recommen dation of any bona fide Co-operative or Labor Organization, shall be admitted to the school" During the year 1922, the first year of its existence, the Northern States' Co operative League had 47 individual members, outside of its affiliated socie ties. As a result of a circular sent some time ago by the Secretary of the League to all these individual members, 23 of them have so far renewed their member ship in the League for the year 1923, by paying an annual fee of $1.00 into the League fund. Three new individual members have also been secured, bring ing the total to 26. It is expected that a second circular, presently to be sent out by the Secretary, will bring in the rest of last year's members. As the League has so far only three individual members in such a stronghold of co-op eration as Minneapolis, it is also ex pected that the friends of the League there will work hard to bring in a host of new individual members from that city. An agreement has been reached be tween the Executive Board of the North ern States' Co-operative League and the Executive Committee of the Co-opera tive Central Exchange to route Mr. S. Alanne, secretary of the League and manager of the educational department of the Central Exchange, to certain so cieties in Northern Minnesota and Wis consin in the month of May. The schedule for Mr. Alanne's trip will be as follows: Lake Nebagamon, Wis., May 3rd Moquah, Wis., May 4th Ino, Wis., May 5th WrenshaU, Minn., May 7th Cloquet, Minn., May 8th Two Harbors, Minn,, May 9th Wright, Minn., May 10th Brainerd, Minn., May llth Staples, Minn., May 12th Spooner, Wis., May 14th Chetek, Wis., May 15th Bloomer, Wis., May 16th 86 CO-OPERATION The purpose of the trip is to try to bring those societies, which so far have kept aloof from the Northern States Co operative League, closer to the League, and also to do general educational work along the co-operative lines. CLEVELAND DISTRICT CO OPERATIVE LEAGUE According to reports from Elizabeth Bertram, the newly appointed Secretary of the Cleveland District League, the work there is being vigorously pushed. To date the following organizations have united with the League, and others expect to join in the near future: Workingmen's Co-operative Com pany, Bohemian (6 stores). Slovenian Co-operative Company (3 stores). The Co-operators Company (1 store). Cleveland Co-operative Tailors. City Co-operative Dairy. The large Jewish Co-operative Bak ery with 2500 members hesitates so far to unite with the League only because of the large membership dues they will have to pay; but some kind of an ad justment will be made. The Y. W. C. A. Co-operative Store is doing such a very small business and on such a small capi talization, that the per capita here, also, is a heavy tax upon them. Beginning in March a Co-operative School of Commercial Training with ten lessons in simple accounting was opened under the auspices of the League. Mr. H. E. Carrier, a professional instructor in accounting is teaching the class. Both labor union and co-operative officials are very much interested in this prac tical aid to their work. Students pay $5 for the course, and if the enrollment is large enough, some of this will be re bated. The City Co-operative Dairy is con tinuing its progressive encroachment upon the business of private distribution of milk in Cleveland. Lately they have succeeded in inducing the Atlantic and Pacific Tea Company to carry Co-opera tive Milk in all the A. & P. stores in the city. The new manager of the Dairy, Mr. Myron A. Loomis, has a rich back ground of dairy experience. For four years he was with the University of Minnesota, for one year with the United Farm Dairies at St. Paul, and for two years in the Dairy Department of the University of Tennessee. FROM THE LEAGUE HEADQUARTERS CHECK UP THAT OVERHEAD EXPENSE! The League has often sent to its con stituent societies advice on keeping down the overhead expenses. We have sent out bulletins showing just what propor tion of gross sales should go to each item of operating expenses. The New York State Department of Farms and Markets made a study of operating expenses in private retail grocery stores in New York City in 1918, and published their findings last year. In 1919 the Bureau of Business Re search of Harvard University made a similar study of various grocery stores throughout the country, and published their report in 1920. Now we have the report of the Bureau of Labor Statistics of the U. S. Department of Labor as to the results of their study of expenses in retail co-operative grocery stores made in 1920. Following is our composite of all these figures. The New York City study was of 128 stores; the Harvard studies, of 175 stores; the U. S. Department of Labor studies, of 72 stores. CO-OPERATION 87 OPERATING EXPENSES IN RETAIL GROCERY STORES Net sales = 100% i'J] N. Y. City Studies Harvard Studies U.S.Dept. of Labor Studies Average Sales Expenses: Wages. . . .............. Q.Q%a. 4.9% 5.5f0b 5.67% Advertising.... ......... c .2 .2 .2 Wrapping. ........... .8 .6 .3 .57 Total. ............... 7.4 5.9 7.7 d 6.44 Delivery Expenses: Wages.. ................. I l 1 jl.4 b Other expenses. .. ........] ' (1.0 .7 Total. ............... 1.7 2.4 .7 2.01 Office Expenses: Salaries. ............... c 2.0 b Supplies. ............... c .1 .2 Total. ............... 2.1 .2 Fixed Charges: Rent. .................. 2.4 a 1.1 .8 1.4 a Light, heat, power........ .2 .23 .1 .18 Insurance. .............. c .15) 1 OQ Taxes. ................. c .20J 'L 'M Interest. ................ .6 1.00 .2 .6 Repairs. ................ c .07 .3 .19 Depreciation............. c .27 .4 .34 Total. ............... 3.2 3.02 1.9 2.94 Freight, drayage, etc........ .3 c 1.1 .7 Miscellaneous expenses. .... 1.2 .50 .8 .83 Loss from bad debts........ .3 .3 .1 .23 Total Expenses. ....... 14.1 14.6 10.3 13.0 GROSS AND NET PROFIT IN GROCERY STORES, AND TURNOVER Gross profit. .............. 16.4 17.0 c 16.7 Net profit. ................ 2.3 2.0 2.8 e 2.4 Annual turnover. .......... 8.3 times f 8.3 times f 3 to 5 times on investment, g a. Rents and wages are much higher in New York City than elsewhere; and allowance should be made accordingly. b. Wages for delivery and office salaries are included in Sales Wages in this study. c. Not given. d. The figures given in this line do not express the actual total of figures immediately above. This may look like a mistake in addition. As a matter of fact, all these figures are common, not average figures. For instance, the Harvard Studies are of 175 stores. If averages alone were taken, a few extremes would throw the final figures so far off that the results would not be at all representative. The common results are found by comparing only those that are quite typical. e. Statistics gathered from 158 societies. f. Procured by dividing the average inventory for the period into the net cost of the goods sold. g. Procured by dividing the invested capital into the total sales. 88 CO-OPERATION CHAIN STORE ATROCITIES Fritz, the present manager of the chain store on a busy corner in a large Eastern city, has had a varied experi ence. His contributions to the better ment of humanity range all the way from the dispensing of drinks over the bar to janitoring in the aristocratic church on the Boulevard. In his pres ent work he is most successful. The company Supervisor who makes the daily rounds of the stores in Fritz's section of the city is a peculiarly diffi cult taskmaster. At least once a week he lets each manager know that his job will be considerably safer if said man ager slides a ten dollar bill across the counter to him,—the supervisor needs a good deal of cash for his gay night life. It is only natural that the managers comply with a good deal of alacrity. Fritz has less difficulty than most of the managers in getting back this $10 (and considerably more) from the con suming public. He depends entirely upon three little devices, with variations upon each. It is commonly supposed that all goods in the chain groceries are plainly labelled with price tags. Fritz follows the rule generally, but always has a large supply of staples and some fancy goods under the counter or on the lower shelves that are unmarked. His selling prices for these articles change almost as often as requests for them are made by his customers, and he realizes each day a tidy profit from this practice be fore closing time arrives. Every morning after the supervisor has gone he removes from four or five of his best sellers on the shelves the regular price tag and substitutes others that net him a cent or two more per sale. Before going home at night or early next morning he returns the orig inal tags to their places. Here again Fritz realizes a neat little surplus which more than pays him for the effort used in continually changing those price tags back and forth. But his biggest source of revenue is his deft use of a pencil. Every time he sells more than six items to one cus tomer he jots the figures down on a piece of wrapping paper, and in hur riedly adding them up always makes a mistake of one figure in the second col umn. Where the true total is $2.69 he makes it $2.79; or where it should be $1.77 he writes $1.87. Customers very seldom add these figures up for- them selves or ask for the paper on which they have been written. On the occa sions where a careful purchaser does catch him at the trick, Fritz's ready and apologetic "Oh, I made a mistake of one figure! Sorry! but mistakes will happen in the best regulated families," quickly disarms all suspicions. Fritz gets several dozen of these large orders every day and nets 10 cents on almost all of them. Lately the Supervisor has taken to "guying" Fritz on his evening activ ities. Fritz is a leader of two boys' clubs and often gives impassioned talks to the District Federation of Boys' Clubs on "Honesty in Business", "Choosing My Life Work", "Fair Play and American Manhood", etc. The Supervisor comes across these speeches in the newspapers the morning after and considers it all a great joke. Fritz sees nothing funny about it. SUBSCRIPTION OFFER Any subscriber who sends in five or more new subscriptions at one time will receive free a choice of one of the fol lowing books: CONSUMERS' CO-OPERATION (cloth), by Albert Sonnichsen. RURAL RECONSTRUCTION IN IRELAND, by Smith-Gordon & Staples. TRANSACTIONS OF THIRD CO-OPERATIVE CONGRESS (Chicago). CO-OPERATION, Vols. VI, VII or VIII (bound volumes, 1920, 1921 or 1922). Any subscriber who sends in three or more new subscriptions at one time will receive free a choice of one of the follow ing: CO-OPERATION, THE HOPE OF THE CON SUMER (cloth), by Harris. CONSUMERS' CO-OPERATIVE SOCIETIES (paper), by Gide. PEOPLE'S YEAR BOOK, 1923 (paper). THE CO-OPERATIVE MOVEMENT t(in Yid dish), by A. Stolinsky. This offer holds good until October 1, 1923. CO-OPERATION 89 THE CORRESPONDENCE FILE TWO LETTERS FROM THE SAME MAIL I read the article appearing in the March number of CO-OPERATION entitled "Do Social ists Want Co-operation?". The article dis cusses some very vital points, but I fear in a very careless way. You state that "Socialists aim at enlarging and strengthening the politi cal state until it carries on all the necessary business of society." Later on you furnish partial answer to this sweeping assertion by saying: "Socialists, like all other people seek ing a way out of the present chaos, are wak ing up to the fact that the co-operative method of economic organization offers a solution to the problem." First of all, would it not be more fair to admit that this position of the 'Socialists has already undergone a universal change, rather than to indict all Socialists. The fact is that in most all countries the Socialists have read ily absorbed and accepted the pure co-operative method. Don't confuse the Communists of Russia with the Socialists. No doubt the Socialists of the United States have been the most backward in learning that the Rochdale system of co-operation is a better means of workers' ownership and operation, at least in the field of production and distribu tion of articles of trade, than is public owner ship of the same. This backwardness, how ever, is due to the many failures of co-opera tives in this country. For the past ten years the Socialists of the United States at different national conventions, have unanimously ac knowledged the superiority of co-operation over any other form of ownership as far as it can be proved a success. Beyond this, and be yond this only, do we adhere to collective ownership and democratic management. You proceed to make another terrible indict ment of the Socialists while seemingly unknow ing that you yourself furnish the complete answer to your own charge. At one place you say: "But the Socialist believes that when the State has been made a Socialist State it will cast off its bureaucracy and coercion and create a free society such as the co-operative society, and here is where the Socialist is destined to suffer disillusionment." You then proceed to explain how those who obtain power never relinquish it, but con tinue to keep the Socialist State a permanent as well as coercive and domineering institu tion. Here is the answer you have supplied to your own criticism: "The average Socialist has discovered during the last few years, if not before, 'that capturing the government does not mean capturing the economic ma chinery of society.' The latter is the more important of the two." The government and the state, you say, are only the tools of the forces which control the property and the machinery of production and distribution. Precisely BO; the state is ever the expres sion of the dominant economic class. This is so because this class has always made it their business to control the state whatever its form. Is it your advice to say to co-operators, "Pay no attention to the state or what it does to co-operatives"? We have the panacea that will ultimately produce co-operative society; then we will be the state. If so, you likewise must suffer some disillusionment. Wasn't it a fact that the co-operators of England were forced into politics to make the state cease expressing the desires of private traders? The point I desire to make is that too much valuable time has already been wasted in this country because too many in the different branches have attempted to build up their movement by trying to tear down other organ izations. The fact is the working class has a fierce and long struggle ahead before they will attain the co-operative commonwealth. We need the efforts of at least three branches of the workers' organization to bring it about, namely: the labor movement, the political movement, and the co-operative movement. Each has its immediate field of endeavor and its part to play in helping the other while we are all building for the ultimate structure. Each will make mistakes and profit by them, we hope. In the meantime, let us all seek to get closer together, rather than further apart. All these branches of endeavor will change some characteristics, if not form, as time goes on. The three must attempt to hang together or there is real danger that for a considerable time they will hang separately. Why should one organization carry a chip on its shoulder looking for a chance to antagonize? All true co-operators should strive to conciliate and solidify the workers of America. In no other way can the powers of greed and reaction be overcome. DANIEL W. HOAN, Mayor, City of Milwaukee. While writing the office of The League to change my address, I am so strongly tempted to offer my commendation of your position on Socialism and similar political effort, as indi cated by your editorial on page 38, March number of CO-OPEBATION, that I will yield thereto; it will surely not offend you and may be pleasing to you. The concrete fact is that Socialistic, Com munistic, or other political domination would surely result in changing political bosses only, and fail to cure the economic evils we seek to escape. Further, no reform gained through political methods and so maintained can be depended upon to be lasting; party dominance is too unstable, shifting from one party to another too frequently. With best wishes for your continued success. W. F. BRAGGINS, General Representative, Brotherhood of Railway & Steamship Clerks, Oklahoma City, Okla. 90 CO-OPEEATION THEY CAN'T FREEZE OUT THESE CO-OPERATORS I am now in Florida, the land of sunshine and flowers. Yesterday 1 was in Frostproof. Called upon the co-operative store located there. This store is the one 1 helped in organizing last fall by letter. I found them doing a good •business. In fact, they are doing a wonderful business when you take into consideration that it is a very small town. Their manager is a young man of high moral character, and heart and soul in the Co-operative Movement. His name is Andrews. He came from Alabama and started the store for them with $60B in the treasury. Has now a stock of $2500, all paid for; has not drawn anything from the treas ury except the first $600. As their business is a cash and carry proposition, he knows every day where they stand. All profits are turned back into the store, increasing their stock in the store. They also pay cash and take their discounts. They have forty members. You see by the small member ship they must be loyal ones. They have dis posed of only $1,000 of their capital stock of $10,000. They are now going to take in more members and put in drygoods and clothing. I am fully satisfied they will succeed in this, as the people are beginning to realize what the store is to them. I addressed them last night on the subject of true Co-operation; also how to conduct a co-operative store; also the duties each member owed the store. After I finished my address I received their application to be come a member of The League and a subscrip tion for the magazine. I am well pleased with the response I met after my address. They made me promise I would come back and talk with them again, and they would get up a barbecue and fish-fry and give me a big crowd to speak to. J. F. RANDALL, Paducah, Ky. support when the practical and specific ma chinery is set in motion. L. R. TILLMAN, Lowndes County Exchange, Glennville, Ga. REWARD OFFERED FOR AN ANSWER TO THIS QUESTION Our Exchange, composed of two stores, Glennville and Savannah, is in high way of a great career. We have had to see a few good men imposed upon and sacrifice more time and money than any few should. But they have done it, and we are going ahead. We met the Engineers Sunday, the llth, and raised several hundred dollars, which will begin to take out the slack. Do you think it is pressure from without that prevents Union men from going right to the root of our evils with a specific and defi nite plan of operation? I want to know why Mr. ——— and Mr. ——— and Mr. ——— (nation ally known farmer and labor leaders) do not and have not applied the practical remedy, already laid out, to the evils in our distribut ing machinery. Their statements in support of (co-operation) and explanations of exactly how the system operates would save a world of unnecessary drudgery and individual effort of the promoters who attempt to do the thing that they all concede is proper, but do not STATEMENT OF THE OWNERSHIP, MANAGE MENT, CIRCULATION, ETC., REQUIRED BY THE ACT OF CONGRESS OF AUGUST 24, 1912 Of CO-OPERATION, published monthly at New York, N. Y., for April 1, 1923. State of New York, County of New York, ss.: Before me, a notary public in and for the State and county aforesaid, personally appeared J. N. Perkins, who, having been duly sworn according to law, deposes and says that she is the business manager of the CO-OPBKATION and that the following is, to the best of her knowledge and belief, a true statement of the ownership, man agement (and If a daily paper, the circulation), etc., of the aforesaid publication for the date shown in the above caption, required by the Act of August 24, 1912, embodied in section 443, Postal Laws and Regulations, printed on the reverse of this form, to wit: 1. That the names and addresses of the pub lisher, editor, managing editor, and business manager are: Publisher, The Co-operative League of America, 167 West 12th Street, New York City. Editor, James P. Warbasse, 167 West 12th Street, New York City. Managing Editor, C'edric Long, 167 West 12th Street, New York City. Business Manager, J. N. Perkins, 167 West 12th Street, New York City. 2. That the owners are: (Give names and ad dresses of individual owners, or, if a corporation, give its name and the names and addresses of stockholders owning or holding 1 per cent or more of the total amount of stock.) The Co-operative League of the U. S. A., 167 West 12th Street, New York City. James P. Warbasse, President, 167 West 12th Street, New York City. A. P. Bower, Vice-President, 167 West 12th Street, New York City. J, F. McNamee, Secretary, 167 West 12th Street, New York City. Waldemar Niemela, Treasurer, 167 West 12th Street, New York City. (Organization members, 1,000.) 3. That the known bondholders, mortgagees, and other security holders owning or holding I per cent or more of total amount of bonds, mortgages, or other securities are: (If there are none, so state.) None. 4. That the two paragraphs next above, giving the names of the owners, stockholders, and security holders, if any, contain not only the list of stockholders and security holders as they appear upon the books of the company but also, in cases where the stockholder or security holder appears upon the boobs of the company as trustee or in any other fiduciary relation, the name of the person or corporation for whom such trustee is acting, is given: also that the said two para graphs contain statements embracing affiant's full knowledge and belief as to the circumstances and conditions under which stockholders and security holders who do not appear upon the books of the company as trustees, hold stock and securities in a capacity other than that of a bona fide owner; and this affiant has no reason to believe that any other person, association, or corporation has any interest direct or indirect in the said stock, bouds, or other securities than as so stated by him. 5. That the average number of copies of each issue of this publication sold or distributed, through the mails or otherwise, to paid sub scribers during the six months preceding the date shown above is ............ (This informa tion is required from daily publications only.) J. N. PERKINS, Business Manager. Sworn to and subscribed before me this 19th dav of March, 1923. (Seal) P. VIGGIANO. (My commission expires March 30th, 1923.) CO-OPEEATION PUBLICATIONS of THE CO-OPERATIVE LEAGUE HISTORICAL, Per Copy Per 1M 3. Story of Co-operation .........................................................f .10 J6.00 7. British Co-operative Movement ............................................... .10 6.00 88. Co-operative Consumers' Movement in the United States....................... .05 4.00 39. Consumers' Co-operative Societies in N. Y. State, (Published by Consumers' League). . . . ............................................................. .10 TECHNICAL, 4. How to Start and Run a Rochdale Co-operative Society....................... .10 4.00 6. System of Store Records and Accounts......................................... .50 6. A Model Constitution and By-Laws for a Co-operative Society................ .05 2.60 8. Co-operative Education. Duties of Educational Committee Defined.......... .10 9. How to Start a Co-operative Wholesale....................................... .10 27. Why Co-operative Stores Fail.... ............................................. .02 1.00 2. Co-operative Store Management................................................ .10 14. How to Start and Run a Women's Guild....................................... .05 IB. How to Organize a District Co-operative League.............................. .10 29. Credit Union Primer (By Ham and Robinson)................................ .25 MISCELLANEOUS 16. Model Co-op State Law........................................................ .10 17. Syllabus for Course of Lectures, with References 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 41. Farmer's Co-operation (By Benson Y. Landis)................................ .15 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 Real Co-operator; (25) Resolutions Adopted by A. F. of L.; (26) Factory Workers Co-operate!; (28) Do You Know About Co-operation in Europe?; (40) Have You a Committee on Educa tion and Recreation?; (44) What Is the Co-operative Movement?; (45) Schools and Stores; (47) A Man's Right to a Job; (48) Tips to Co-operators. MONTHLY PUBLICATIONS CO-OPERATION—(In bundle lots, $7.50 per hundred). Subscription, per year..............$1.00 HOME CO-OPERATOR, 4 pages......................................................... .$1 per 100 INTERNATIONAL CO-OPERATIVE BULLETIN (Pub. by The I. C. A.)..........per year, J1.50 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............................................. 2.60 Gide, C.: Consumers' Co-operative Societies, American edition and notes, 1922. Clotb, $3.00; paper bound................................................................... .90 Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, $2.00; paper bound. . . . . ............................................................................... .60 Howe, Fred C.: Denmark, a Co-operative Commonwealth, 1921............................... 2.00 Nicholson, Isa: Our Story..................................................................... .25 Powell, G. Harold: Co-operation in Agriculture. Macmillan.................................. 1.50 Redfern, Percy: The Story of the C. W. S............................."...................... 2.00 Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918.............................. 1.50 Redfern, Percy: The Consumers' Place in Society, 1920...................................... i]oo Smith-Gordon: Co-operation in Many Lands, 1920...........................................| lljjo Sonnichsen, Albert. Consumers' Co-operation, 1919. Cloth bound, $1.75; paper bound....... .75 Stolinsky, A.: The Co-operative Movement. In Yiddish..................................... . l 00 Webb, B. and S.: The Consumers' Co-operative Movement, 1921...................... . " 5*00 Webb, Catherine: Industrial Co-operation, 1917............................................ I'so Woolf, Leonard: Co-operation and the Future of Industry.................................. . l 50 Woolf, L.: Socialism and Co-operation.......................................... . " j'go "The Co-operative Consumer" and "Co-operation," III (1917), VI (1920), VII (1921), VIII Transactions of Second American Co-operative Congress, 1920...........'...."."...".".."!I"'.'..'. ' l 00 Transactions of Third American Co-operative Congress, 1922....................... ..... " l"oo The People's Year Book, 1923. Cloth, .80; paper bound...................................... ^50 (Ten cents postage should be added for books whicb cost more than $2.00, and five cents for the smaller books.) 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. Subscription for CO-OPERATION, $1.00. Membership in The LEAGUE, $1.00. Enclosed find $......... for Name. Address. Date.... Co-operative Central Exchange Wholesale Grocers and Jobbers, Bakers We supply goods to C»-»perative Societies ONH.Y. We are owned and controlled by Co operative Societies. We are organized t* enable Co-operative Societies to do collectively what they cannot do individually. Co-operative Central Exchange Offices, Warehouses ttnd Plant: Winter Street and Ogden Ave., SUPERIOR, WIS. Co-operators' X,td. Mutual Fire Insurance Co. is now writing insurance in State of Wisconsin The Canadian Co-operator Brantford, Ontario, Canada The organ of the Canadian Co-epera- tive Movement, owned by and con ducted nnder the auspices of The Co-operative Union at Canada. Published monthly 75c per annum MOVING PICTURES and Stereopticon Lectures may b» rented from THE CO-OPERATIVE LEAGUE 167 West 12th St., New York City 1. "Some Examples of English Co-operation." Moving pictures of factory processes (two reels). . ...........................J5.00 2. "Co-operation in the United States." With 53 stereopticon views...........$3.00 "Tb» Co-operative Movement In Russia." With 36 colored stereopticon views..$3.00 3. 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: Tear 12 gh.; 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 use 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. >•« '(mm 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. 6 JUNE, 1923 10 Cents VITAL ISSUES CO-OPERATION IN THE RUHR The Co-operative Movement is the most promising force making for peace that the world has yet seen. During the war, this was the one international movement that was not shattered by the hostilities that surged among the nations. Communication was continued among the co-operators of every country through the International Co-operative Alliance. The "International Bul letin" never ceased publication in English, German, and French. French Co-operators assisted German Co-opera tors in distress, and English assisted Austrians. The German gunners bom barding the French frontier, spared, in many a French town, one building—the Co-operative Society's store — while every thing else was destroyed. So noticeable was this that the eminent economist, Charles Gide, professor of political economy of the University of Paris, said that the people learned to flock to these stores, in times of bom bardment, as places of safety, just as they had sought the churches for the same purpose during the Middle Ages. Now the French army is invading the Ruhr, making a new war upon the German people. The French military forces have taken control of commerce. The Consumers' Co-operative Society of Mannheim, the central warehouse of the German Co-operative Wholesale Society in the same district, and the society at Dortmund have especially suffered at the hands of the French military au thorities. In this situation, the German Co-operative Union (Zentralverband Deutscher Konsumvereine) appealed to the International Co-operative Alliance and to the French Federation of Co operative Societies (Federation Co operative General). This appeal has been successful. These organizations interceded and appealed to the French government in behalf of the German Co-operators. Heinrich Kaufmann, the Director of the German Co-operative Union, has just notified the Executive Board of the Alliance, with satisfaction, that the French authorities have en tirely liberated the large central co-op erative bakery at Mannheim, and the French government has promised to give sympathetic consideration to any similar difficulties brought to its atten tion. This is most gratifying, and gives further confirmation that the spirit of internationalism still survives. The co-operators of one nation have helped the co-operators of a country with which their government is at war. The world is much deceived by the Ruhr invasion. "We co-operators, at least, should not be fooled. It is not a political move for the collection of reparations. It is a movement of the big French iron interests to get the coal and industries of the Ruhr valley away from the big German financiers. That 92 CO-OPEEATION is all. It is a fight between the big ex ploiters of the people, just exactly the same as the great war was. The fact that the people are fooled by the Ruhr business, the same as they were by the war, is not to be wondered at. They are still at the niercy of the press and the governments which are but the agents of these interests. Some day it will be different, if our way prevails. J. P. W. HOW THE SHAMELESS EX PLOITER BECOMES A VIRTUOUS CITIZEN A few months ago Senator Smith W. Brookhart played a shabby trick upon the business men of the country. He presented to the U. S. Senate and to the American people a list of the cor porations which declared stock divi dends in 1922. This list was later pub lished in the New York Times. We should like to publish it here again in full, but it would cover several pages and we do not have the space. A few of these figures given in round numbers, however, make interesting reading. Atlantic Eefining Co.. DuPont de Nemours.. General Baking Co.... Great Northern Paper. Gulf Oil Corp........ Magnolia Petroleum .. Nat'1 Biscuit Co...... Ohio Oil Co.......... Pan-Amer. Petroleum. Prairie Oil .......... Prairie Pipe Line Co.. Singer Mnfg Co....... Standard Oil of Cal... Standard Oil of Ind... Standard Oil of N. J... Standard Oil of N. Y.. Standard Steel Car... Union Oil of Cal..... Vacuum Oil Co....... Victor Talking Mach.. MILLIONS 45 40 16i/2 80 60 22 45 35 40 54 30 101 140 3931/2 150 36 40 45 30 The entire list includes more than 300 corporations the total value of whose stock dividends declared in 1922 exceeds $2,100,000,000. The Standard Oil group alone distributed 882 millions in this way. There were many other cor porations whose figures Senator Brook- hart could not get, much to his disap pointment. Such facts as these are excellent am munition for the soap box agitator. They also have a very practical value for the worker in the co-operative or the labor movement. Let us take, for instance, the Davis-Brown Woolen Co. which declared a stock dividend of 3333 per cent. The workers in these mills will now run their looms at a much higher speed. Overhead interest charges on the busi ness have increased more than 30 times; these textile workers will have to bear their share of the burden. The consumers, on the other hand, will pay their share of the new interest charges. And meanwhile, Messrs. Davis and Brown make the same exorbitant profits they have made ever since the war, but these are not any longer known as "exorbitant profits"; they are now dis tributed among 33 1/3 times as many shares of stock as formerly. The small stockholder who formerly owned only ten shares and got on it a cash divi dend of several hundred per cent each year was a "gross profiteer." Now that he has 333 shares and receives only a six or eight per cent dividend he is a conservative business man and declares self-righteously that "he would not own stock in one of these corporations which rob a defenseless consuming public and an exploited working class." The co-operative movement advances slowly, and many years will elapse be fore it is powerful enough to vie with these corporations. But even the longest night finally fades away before the morning sun. Co-operation is yet com ing into its own; and when it does, this life-destroying profit game will be but a bad memory. C. L. BREAD FOR FOOD OR BREAD FOR PROFIT? The Ward Baking Company, with tremendous plants in many of the largest cities of the country, is the CO-OPERATION 93 largest bakery monopoly in the United States. On May 1st it declared a lock out of the organized bakers and in stituted the '' Open Shop.'' This means that thousands of men are thrown out of jobs unless they agree to submit themselves entirely to the will of this powerful trust and promise to maintain no organization of their own. The Ward Baking Company is built to produce profits. Bread is a secondary consideration. The needs of men, women and children must be sub ordinated to the profit motive in such an institution. That the Ward Com pany has been highly successful in turn ing out its chief product the following figures attest. In 1922 the company gave, in addition to the usual 8 per cent dividend on stock, an extra 5 per cent cash dividend and a 20 per cent stock dividend. The net profits for the year amounted to $2,492,123, or 22.6 per cent of its capitalization. Late in 1921 the company forced its employees to take a 15 per cent cut in wages; and in the Spring of 1922 attempted to apply another drastic reduction and the elim ination of the 8-hour day. The workers in the bakery plants and the bread consumers in millions of homes contributed great wealth to these idle stockholders. In return, the bread producers are reduced to virtual slavery and the consumers are continually pay ing a profit-tariff on every loaf of bread purchased. King Profit reigns in a lordly fashion and his appetite is never satisfied. Of course some of us know that bak eries may be run in the interest of bread-making primarily. Co-operative societies in Los Angeles, Superior, Sault Ste. Marie, Detroit, Cleveland, Utica, Paterson, Newark, Brooklyn, Spring field, Fitchburg, and scores of other cities are operating such bakeries. They have no wage fights, have no desire for the "Open Shop," are on friendly terms with the local unions. And they give full value to the consumers. But there are millions of people who don't know this. They think bread can be produced only as a by-product of a profit-seeking institution. Thousands of the bakers themselves believe this, too. And until the organized bakers begin to take a vital interest in co-operation we shall not soon supplant the Ward Com pany with such co-operative bakeries as that of the Vienna Society in Austria which has a membership of 200,000. The Co-operative League or any other co-operative organization cannot force co-operation upon a people that is sat- isfied with the profit system. C. L. ON DISTURBING THE MEETING In the Jubilee History of Compsall Co-operative Society, England, is found the following extract from the rules of the society for "keeping order at meet ings": "Any member coming to any meeting intoxicated, and causing any disturbance, or in any wise incommod ing the meeting, shall be ordered by the president to leave the meeting, and if he do not immediately do so he shall be fined one shilling and be ejected." This was one of the rules of the society in 1852. Now, after seventy years, alcoholism is no longer a serious menace to our meetings. Instead of having boisterous members, we have members who are not boisterous enough. We have attended the members' meetings of some societies in the United States and watched the quiet, unexpressive faces and heard no sound nor discussion nor questions, and we have often wished that some one would get up and make a fuss about something. If only something might happen to wake up the members to ac tion, it would be better than the stolid indifference. These meetings where nothing hap pens, where nobody is moved to speak about anything, are deadly dull. Al cohol is not necessary to stir up the people. If they would only drink deeply of the spirit of co-operation they would be stimulated into action. These dull and quiet meetings indicate that the people have not had a good draft of the real tiling. J. P. W. 94 CO-OPERATION CREDIT By Caro Co-operative saving and lending, what is called in the United States the credit union, has behind it a long his tory; more than seventy years of sucess- ful operation in Europe, twenty-five years in Canada; but only recently in troduced in the United States, in 1909. Shortly before the outbreak of the European war the number of credit unions operating in Germany was es timated by the United States Commis sion to be 17,000. At that time thou sands of credit unions were operating in Japan, Egypt, Finland, and many other countries. Although the idea is new in the United States, eight states have enacted credit union laws. There are one hundred credit unions operating in New York, about ninety in Massa chusetts, and twenty-two rural credit unions in North Carolina. The idea is not only becoming popular among native-born Americans but is thoroughly understood and appreciated by those of foreign birth. WHAT Is A CREDIT UNION? The credit union is a co-operative organization which is formed among the members of an industrial, mercantile, racial, church, or other group, the mem bers of which are mutually acquainted. It is organized, to quote from Mr. Arthur H. Ham, "to encourage thrift by providing a safe, convenient, and at tractive medium for the investment v-f savings of its members; to eliminate •usury by providing its members when in urgent need with a source of credit at reasonable cost; to promote industry by enabling its members to borrow for productive and other beneficial pur poses, and finally, to train its members in business methods and self-govern ment, endow them with a sense of social responsibility, and educate them to a full realization of the value of co-opera tion." The basic principle of a credit union is that all members shall share equally in privileges and ratably in profits, and that each member shall have one vote, regardless of the number of shares he holds. UNIONS D. Coombs How THE CREDIT UNION FUNCTIONATES The sums paid in by members upon shares or on deposit constitute the work ing capital of the credit union. Each, member must subscribe for at least one share, but even trifling sums may be ac cepted in payment of shares or on de posit in order to enable the humblest member to save. From these funds loans are made to members at low rates of interest, repayable on a weekly or monthly installment basis. Ordinarily loans are secured by the promissory note of the borrower with one or more en dorsements of fellow members, but on small loans, those amounting to less than one hundred dollars, endorsements are not usually required provided the credit committee is sufficiently well ac quainted with the character of the bor rower and his endorsers to determine whether or not credit should be ex tended. In the credit union, more truly than in any other lending organization, character is an accepted form of se curity. The very nature of the organ ization involves a more or less intimate knowledge of personal habits and the financial and domestic situation of the borrower. As Arthur H. Ham puts it: "The credit union is formed on the principle that a man's best asset is his own associates' estimate of him, and the moral responsibility of repayment is great when a man knows that by violat ing his obligation he not only withholds the money of a fellow worker but in vites social ostracism." The law of New York State permits an interest rate of 1 per cent a month to be charged on loans, but once the credit union is under way—certainly in groups that have the ultimate purpose of the credit union in mind—the em phasis is put on the reduction of the interest charge on loans rather than on the interest of the dividend on shares. The result is, that even in cases where the interest rate has been reduced to less than 12 per cent per annum, the credit union is able to pay a substantial dividend on shares, and interest on de- CO-OPERATION 95 posits usually exceeding that of the savings bank rate by at least 1 per cent. The explanation of this lies in the fact that every effort is made in a credit union to keep the expenses down to a minimum. The members of the Board of Directors, Credit Commit tee and Supervisory Committee serve •without pay, and until the credit union is large enough to pay a salary to the Treasurer or Manager their services are necessarily gratuitous. Office space and such bookkeeping service as is necessary to conduct the affairs of the union are frequently donated to the credit union; in some groups the meeting place is often at the home of a member. The management of a credit union is in the hands of the membership. It is delegated by them to a Board of Direc tors, a Credit Committee and a Super visory Committee. The Directors have the general management of the affairs of the union. They act upon applications for membership, determine the rate of interest upon loans and deposits, and declare dividends. The Credit Com mittee has charge of the granting of loans to members and fixes the terms of repayment in accordance with the gen eral rules of the credit union and the circumstances involved in the particular case. The Supervisory Committee audits the books and accounts and supervises the acts of the Directors, Officers and Credit Committee. The New York and Massachusetts Credit Union laws do not permit the officers of these committees to borrow or to become endorsers for borrowers unless the members agree to it at a specially called meeting. In Canada officers are not permitted to bor row at all, an advisable provision, es pecially with respect to the Credit Com mittee. Mr. Desjardins has said, "to loan to one's self other people's money is always a serious matter for it is so easy to exaggerate one's own solvency.'' WHAT THE CREDIT UNIONS ABE DOING So far as the encouragement of thrift is concerned, the credit unions have suc ceeded, by means of the more or less compulsory method of paying for shares in installments, in effectively encourag ing saving among the people to whom the ordinary savings institution has not appealed. Some credit unions have not adopted the deposit feature; there are a few in industrial concerns which limit the number of their loans and confine their activities to the acceptance of deposits. Of the $57.344.13 in assets accumulated at the end of the year 1921 in the Equitable Credit Union of New York, $13,869.84 was loaned out to members, $6,354.82 was in cash and other assets, while $37,119.47, by far the larger amount, was invested in Liberty and other bonds. Over $21,000 was taken in in deposits, and in this credit union, as in others, as small an amount as twenty-five cents was not only accepted, but every effort was made to facilitate the saving of such small sums. By far the majority of credit unions, however, are catering to an ever increasing mem bership of borrowers. In North Carolina, where only rural credit unions have been formed, the re sults are most gratifying, although here as well is the definitely defined limita tion of membership. Mutual acquaint anceship has determined the size of the union. It is interesting to note that, although the great slump in the price of farm products has probably been responsible for the dissolution of a num ber of credit unions in North Carolina, the total resources of the twenty now in existence is nearly as great as the re sources of the thirty-three in operation two years ago, approximating over $90,000. In New York the eighty-six credit unions in operation at the end of 1921 had total resources amounting to $4,445,- 297, and had made loans during the year amounting to $3,904,583. In Massachusetts, where at the end of 1921 eighty-two credit unions were in operation, the total resources amounted to $4,047,172.76, and the total loans to members to over $3,003,765. The Credit Union National Extension Bureau was organized, as the title sug gests, to nationalize the credit union movement. It has this year been in fluential in passing laws in two addi- 96 CO-OPERATION tional states, and has paved the way for the organization of a large number of credit unions. There is every reason to believe that the movement will spread in New Hampshire, Rhode Island, Vir ginia, Kentucky, and South Carolina, as it has in Massachusetts, New York, and North Carolina—very much as a fire does, without fanning, once a good start has been made. EDUCATIONAL GUIDANCE FOB CREDIT UNIONS In every state where the credit union has developed there has been some group equipped to give necessary assis tance. According to the law of North Carolina (and eventually this will be true of laws passed in other Southern states) the supervising official is ap pointed by the Department of Agricul ture. He is also provided with a number of assistants. This will enable the credit unions to have thorough super vision. As a matter of fact the North Carolina credit unions have suffered be cause this very excellent provision of the law has not been carried out in its entirety; but the trying experience of the last two years has resulted in an effort to get the 100 per cent co-opera tion which the law permits. In the early days of its development the Massachusetts Credit Union Association (chartered by a special Act in 1914) did all the educational work, paving the way for more extensive growth. This work is now continued under the aus pices of the League of Credit Unions, a central organization made up of two delegates from each union. In New York the promotion of credit unions has been chiefly accomplished by the Divi sion of Remedial Loans of the Russell Sage Foundation. It seems to be worth while to dwell for a few minutes on the work of this League of Credit Unions in Massachu setts because it is playing so important a part in keeping the credit unions in line. It succeeded in gaining the con fidence of the credit union members by handling their printing at very small cost. It is in a sense a co-operative buy ing agency as the credit unions agree on the same bookkeeping forms and order in quantity. Too much strees cannot be laid on the importance of what has always been a severe problem to credit unions at the time of their organiza tion. "Where," we are asked, "can we get these very special forms and how can we afford to pay such unreasonable prices?" Another common and in sistent problem concerns bookkeeping. A credit union in distress calls upon the Secretary of the League, and for a small fee she spends a day or two in straightening out its books. In fact every new problem is taken to the League for solution. Of course they have confidence in it. How could they help it? ACCOMPLISHMENTS OF CREDIT UNIONS Massachusetts, so far as I know, has had no failures. I point to this state as well as to Canada as giving convincing evidence that this movement is destined to become a tremendous factor. As Mr. Bergengren puts it, this movement is: " (1) Increasing the number of small savers in the United States is essentially necessary, for although we are now the richest people in the world, statistics indicate that we are the least thrifty, having proportionately a very small number of individual savers; (2) Elim inating usury by the creation of credit facilities for those who are without such facilities and without banking as sociation; (3) Making it possible for the tenant farmer to buy for cash co operatively in large quantities, and to borrow at low rates of interest, in the South and other sections of the United States where large numbers are now obliged to buy on credit, giving crop liens as security for small purchases and paying from 30 to 90 per cent for the credit." DIFFERENCE BETWEEN CREDIT UNION AND CO-OPERATIVE BANK The co-operative bank is an applica tion of the co-operative idea to com mercial banking; the credit union is Co-operation applied to a limited and clearly denned field of thrift and small credit. The co-operative bank exists CO-OPEEATION 97 because of an accumulation of capital already made. The purpose of the credit union is to make possible the ac cumulation of capital not already in existence. It has been said that no bank can succeed unless deposits exceed its capital ten times over; so it becomes necessary for a co-operative bank to turn to outside depositors for the further accumulation of capital. The credit union, on the other hand, to be successful not only must confine itself to its membership in the acceptance of de posits, but it must watch carefully to see that its membership does not grow too quickly or be drawn from too widely scattered districts. The stockholder of the co-operative bank has no responsibility other than to adhere to the provisions agreed upon when he applies for the purchase of stock. The member of the credit union, on the other hand, in return for the privilege of buying shares, depositing and borrowing, must assume ratable re sponsibility with all other members in the risks involved; and not only that, but he must share in the amount of ser vice gratuitously given. Thus does the credit union demonstrate the co-opera tive principle of "democracy of owner ship and control." A co-operative bank must have a paid staff of trained workers. It is doing substantially a banking business, and starting out as the Brotherhood of Lo comotive Engineers' Bank did with a capitalization of $1,000,000. only men trained in the fundamentals of banking could be judiciously appointed as its managers. The credit union is not do ing, in the strictest sense of the word, a banking business. Some elements of banking enter in and it must choose its board of directors, credit committee and supervisory committee carefully, but in the beginning the working capital will necessarily be small and as it grad ually increases the members will also gradually become better equipped tc handle the funds judiciously. You can view the credit union, if you will, as a training school so equipped as to give all of its members an opportunity to learn the fundamentals of bookkeeping, accounting, credit and investment. The importance of this training in business methods with the incidental develop ment of character in the process can not be overestimated. As Mr. A. Desjaidins of Canada said: "It teaches its members how capital is managed, safeguarded and multiplied by useful employment; it teaches business-meth ods, self-government and self-reliance and thereby makes its members better citizens; it transforms moral qualities into valuable assets and brings to the industrious and thrifty man a higher reward than wages—the confidence of his fellow citizen." Another fundamental difference be tween the co-operative bank and the credit union that might be mentioned is the "one man, one vote" principle which is lacking in the bank, partly be cause of the State and National Bank ing Laws. Lastly, and to my mind the most im portant function of the credit union— the one which makes it stand apart from every other lending institution whether a bank, commercial loan company, or a remedial loan society—is that of mak ing loans on character. One hears a good deal about loans which are made on character and although it is a fac tor which even the commercial lender must take into consideration, no organi zation but the credit union is equipped to accept it in lieu of any other security. To prove, however, that the credit union, in making loans on character, is not showing poor business sense I would like to quote first from Mr. Alphonse Desjardins' pamphlet on the Co-opera tive People's Bank of Canada, He says in part: "A most remarkable fact al ready stated but which deserves special emphasis is that we have never yet heard that any of these credit unions has lost one cent upon its loans. A Boston banker being apprised of this fact told me that it is a marvel, but he acknowledged that it is due to the net work of provisions made to insure their good workings and to the field of ac tivity so happily chosen in which they are carrying on their beneficial work." Mr. Roy Bergengren of the Credit CO-OPEEATION Union National Extension Bureau states in his pamphlet on the credit union as follows: "That the judgment of the average credit committee is good is in dicated by the official reports. The Levis Credit Union has operated for twenty years without losses from bad debts, having done a business during that period aggregating $8,000,000. The fifth annual report of the Scandia Credit Union of Worcester, Massachu setts, says: 'During these years it has loaned $397,309.72 without a loss.' The Santa Marie Credit Union of Man chester, N. H., with assets in excess of $700,000 and an experience covering a period of eleven years makes a similar report. The report of the Massachu setts Bank Commissioner for the year ending 1920 indicates total loans made during the year of $3,311,698, which loans were made without appreciable losses." Operating in its self-appointed sphere the credit union has accomplished tre mendous good. It will reach a high water mark in the years to come when the history of thrift and credit comes to be written. Then more clearly will the words of Mr. Desjardins be appre ciated : '' However important it may be to prevent the farmer and the work- ingman from falling into the clutches of the usurers it is of even higher im portance to educate and to enlighten these same farmers and workingmen -so that they may be in a position to pro tect themselves; and to teach them to manage their own business so that they may become thrifty and more valuable members of the community. In this high conception of social duty lies the real reward to those who have labored to help the movement for the credit union. Success for the young democ racies of this continent depends upon the prosperity and work of life to the millions of workingmen who compose them. For the benefit of these let us substitute for the old phrase the 'strug gle for life' the new Christian ideal 'Union for life.' " CO-OPERATIVE SOCIETIES DO NOT SELL TO MEMBERS By K. H, Maier, legal Adviser of the German Co-operative Union, Hamburg In the November 1922, number of CO-OPERATION is published the decision of a German court to the effect that when a member takes goods from his co-operative society it is not a purchase. This decision rests upon principles that apply to every country. When, for ex ample, six or eight families unite to buy a barrel of sugar, a sack of coffee, a car load of coal or a basket of fish, because in these quantities a low price can be obtained, they assign to one person the function of ordering the commodity, receiving it, weighing it, dividing it properly among the members, collecting the money, and paying the bill. Nobody would claim that these people bought the commodity from one another. The only purchasing consisted in buying from the outside wholesaler. Now suppose that more families unite. They only have to find out just what quantity of this or that commodity each wants and provide for just so many more. The wares are collected and dis tributed to many upon the same prin ciple as to a few. Then comes the dis covery: It is highly inconvenient not to have the money at hand when the commodity is bought so as to get the benefit of discount for cash. For this reason we have each one pay in advance a stipulated amount into the common treasury which shall be enough to pay for all the goods wanted. And then each time one of us takes goods he pays for it also just as before. The full amount is always left in the treasury as an iron reserve. That money always belongs to us. CO-OPEEATION 99 This is the manner of organizing a consumers' co-operative society with share capital; the situation is just the same. The co-operative society member buys neither from his society nor from its manager. He simply calls for the goods at his store. The store manager has simply protected the store against indemnity, bought the goods, and dis tributed them among the members. The goods lose the character of merchandise the moment they leave the wholesaler or the factory. The legal relation between co-opera tive society and members is a peculiar relation. Tt is a pure fiction for the member of a co-operative society to say that he "buys" from his society. He does not buy from the society, the society buys for him. The money that he pays over the counter is only to be used to replace the goods that he takes away. When the position is taken that the co-operative society does not sell goods to its members, then on the other side it must be assumed that a society which builds or buys houses in order to supply homes for its members, does not charge rent. The purchasing function of the consumers' society is comparable to the renting function of a housing society. The practical application of these facts is that all laws having to do with "buying" and "selling" have no ap plication to co-operative societies, so far as the relation between members and society is concerned. FOREIGN RESOLUTIONS ON THE OCCU PATION OF THE RUHR ADOPTED BY THE EXECUTIVE OF THE I. C. A. AT THE HAGUE, 22ND APEIL, 1923 1. "The I. C. A., representative of more than thirty millions of Co-opera tors, sees with deep concern that the oc cupation of the Euhr by French and Belgian troops hampers the economic reconstruction of Europe and the con solidation of the peace. "While recognizing the economic and moral necessity of the payment of repar ations dixe by Germany for the recon struction of the devastated areas of France and Belgiixm, the Alliance re gards the invasion of the Euhr as an act of oppression and force, a method which is neither useful nor efficacious, the true method being based on an un derstanding between all nations. "The Alliance realizes that a military occupation must necessarily bring with it deeds of oppression and violence and the danger of reviving the hate between the peoples, and is, therefore, a policy which may lead to new wars in the future. "The Alliance, true to the resolution voted by its Central Committee in its meeting of April, 1922, at Milan, and to the resolution adopted by the Inter national Co-operative Congress of Basle in August, 1921, on the question of peace and the necessity on any due oc casion to submit to international arbi tration, appeals earnestly through its Executive Committee to the French, the Belgian and the German Governments that they will, in common agreement, submit to the League of Nations, or to an International Court of Arbitration representing all nations, the final settle ment of all the financial and economic consequences of the war. "Meanwhile, the Alliance asks the French and Belgium Governments to give every facility to the German Co operative Societies existing in the oc cupied territories to exercise their ac tivity and to continue their co-operative work in full liberty and in association with their Central Organizations." II. "The Executive Committee of I. C. A. draws the attention of the mem bers of the Alliance to the fact that, in the spirit of the resolution of the Basle Congress, it was represented at the World Peace Congress at the Hague in 100 CO-OPBEATION December last by its President, General Secretary and one of its Vice-Presi dents, and associated itself with the decisions of that Congress on the ques tion of the Ruhr." BUILDING GUILD FAILS The National Building Guild of Man chester, England, heralded during the past two years as the solution of the housing problem of Great Britain, as well as the high road to industrial democracy, went into bankruptcy late last year. Although the Guild had a slight margin of assets over liabilities, the assets were not liquid enough to pay outstanding debts. Creditors of the Guild agreed upon a plan whereby a private building contractor would as sume the management of the Guild for three years, with exclusive control of the business. It is interesting to note the reasons given for this failure. According to S. G. Hobson, Secretary of the National Building Guild, the organization started with several advantages. Public bodies gave the guild work on liberal terms, not requiring an exact estimate, and the Guild's "undoubted superiority in out put as well as in quality of work had given it a sort of monopoly." According to the International Labor Office, "The system under which the manual worker had been deliberately left free to manage his own affairs with a bare minimum of technical assistance had worked well enough at first, but under adverse conditions weak spots be came apparent. By two-thirds of the local committees, a standard of discipline was maintained as high as in any pri vate firm; but some committees had shown slackness in time-keeping, had countenanced abuses of the principle of continuous pay and had shown a human but unbusinesslike tendency to keep their comrades off the unemployed market at all costs, even to the extent of over-man ning their jobs. By August, 1922, it was clear, not only that efficient guilds were being made to pay for inefficient guilds, but also that a good deal of the money which was required to pay for materials was not available for that pur pose, having been spent on labor." Two lessons are to be learned from this failure, according to Mr. Hobson of the Building Guild: "In the first place, ideas of industrial democracy had to be revised in the light of experience; cen tral technical control and supervision had been found necessary; future con tracts must include a larger percentage provision of this kind. The second les son was that it was impossible for the workers to carry out a great movement for industrial control on the basis of their present resources. In spite of the self-sacrificing help which the move ment had received, the capital at the dis posal of the Guild had never been ade quate and new methods must be de vised." The editor of the Belgian journal "La Co-operation", draws the following con clusion from the failure of the British Building Guild and similar societies in Belgium and Italy: '' The experimental workers in the domain of production do not lack interest, but unfortunately their efforts are not generally met with suc cess. We shall never cease repeating— only production based on consumption, and dependent upon the experience of a half century in all countries is the direc tion in which we encourage the workers!'' RUSSIA'S HUGE MOVEMENT Late in January of this year the Council of the Centrosoyus (the highest authority of the Central Union of Con sumers Societies meeting between annual congresses) held its meeting. One of the significant remarks made there was that of Mr. Rikov, Vice President of the Couricil of People's Commissars of the Soviet Government, when he said: "Co operation is destined to take over the whole of the retail trade of the country.'' Membership and turnover figures for Centrosoyus are interesting. At the end of 1922 there were 24,559 consumers' societies in the country, 46,963 co-opera tive shops, and 4,631 voluntary federa tions. These 76,989 units had a combined staff of employees numbering 250,000. CO-OPERATION 101 The total turnover for Centrosoyus, the various Unions, and the local consumers' societies aggregates about 347 million gold rubles, 60 per cent of which repre sents the actual turnover for the smaller units alone. It must be remembered that these figures are in gold rubles; if they had been in paper rubles they would run up into the trillions or quad rillions. The State Trusts are of course doing a very large business in Soviet Russia. However, the Co-operatives are now do ing 25 per cent of all the business of the country. And the movement is receiv ing no subsidy whatever from the Gov ernment. The consumers' movement is now engaged in many kinds of produc tion. It is organizing not only indus trial production, but also agricultural production, such as tractor cultivation, flax growing, seed growing, stock breed ing, dairy farming, etc. In Moscow it has an immense printing plant and is to begin the publication of a popular weekly paper which will reach the masses of co-operators. One of the largest libraries in Europe is that of the Cen trosoyus. The co-operative bookstores have a stock of 467,000 books; and in Moscow there is a sort of wholesale bookstore which distributes books to the locals. Sixty educational courses are being given at the schools, with a total enrollment of 5,000 students. In Mos cow is a Higher Instructors' School with eight students; and in Petrograd a "Co-operative Polytechnic" with eighty students. Centrosoyus now has foreign offices in London, Berlin, Reval, Riga, Constanti nople, and New York. Last year 50,000 tons of goods were handled through these centers for the co-operatives, rep resenting a turnover of 22 million gold rubles. This is about 25 per cent of the total foreign trade of Russia. The individual membership of the co operative movement is estimated by the officials of Centrosoyus to be about 20 million heads of families, or nearly 100 million direct beneficiaries. Strange to say, the leaders of the movement are making war at present against a host of fraudulent co-opera tives ! NEWS AND COMMENT SUCCESSFUL WHOLESALING The fifth annual meeting of the Co operative Central Exchange was held in Superior, Wis., March 12th and 13th. The meeting was attended by 33 dele gates, representing 22 affiliated socie ties. There were present five fraternal delegates. The financial statement of the Central Exchange (for the year 1922), as pre sented to the meeting, showed the assets of the Exchange at the end of the year as $86,567.26, as compared with $81,- 698.40 the year before. The total net sales for the year 1922 were $337,566.93; the corresponding figure for the year 1921 being $312,346.59. Thus there was an increase in the sales, amounting to a little over $25,000. The profit and loss statement showed a net profit of •$!,- 182.83 for the year. It is remarkable that during its existence of over five years the Co-operative Central Ex change has never shown a loss. The list of membership shows that 63 co-operative societies have joined the Exchange during its existence. Of these all are not active at present (there have been a few amalgamations of socie ties; three have failed, etc.), but the number of active societies exceeds 50. Most of these (about 70%) are farm ers' stores; 36 of the affiliated societies are located in Minnesota; 17 in the Up per Peninsula of Michigan; 8 in Wiscon sin ; 1 in North Dakota and 1 in Illinois. During the year 1922 the Exchange had actual business dealings with 112 co-op erative societies, while for instance dur ing the year 1918 it dealt only with 50 societies. By far the largest branch of the busi ness of the Central Exchange is its flour and feed business. During 1922 it sold 102 CO-OPERATION over 10,000 barrels of Co-operators' Best (wheat) flour. It also sold almost 3000 tons of feed, which was 30% more than the previous year. In the month of De cember alone it sold 28 carloads of flour and feed. For the last three years the Co-opera tive Central Exchange has had its own bakery, where mostly toast and hard tack is manufactured. The sales of the bakery during last year were $34,126.16, as compared with $42,003.09 the pre vious year. The reduction is partly due to reduced prices of toast, partly to cer tain adverse circumstances which are now well under control. During the year 1922 there was a change in the management of the Cen tral Exchange. Mr. John Nummivuori, who had been managing the Exchange from its very start in 1917, resigned his position in last July, to accept a similar position with the Central States' Co-op erative "Wholesale Society of East St. Louis, Illinois. Mr. Eskel Ronn, the sales manager of the Exchange, was elected general manager in his place. Mr. Ronn, who is still a young man, has been with the Exchange since the year 1918, first as their bookkeeper and later as sales manager. The Co-operative Central Exchange seems to have entered a regular boom period from the beginning of the new year. Its sales during January were 65% greater than they were in Janu ary, 1922, and the month of February was a record month with 85% larger sales than the sales in February, 1922. And the surplus for the first two months of the year is already somewhat larger than the surplus for the whole of last year. At present there are 18 persons on the pay roll of the Exchange. Of these 8 are working in the bakery. To enlarge their business further the Board of Directors of the Central Ex change decided to float a $25,000 bond issue from the beginning of this year. The bonds, which are $25 each, are sold to all good co-operators, and naturally all co-operative societies which are either affiliated with the Exchange or have business dealings with it, are expected to buy some of these bonds. Just to show its sympathy and solidarity with the Exchange, and to set a good ex ample, the Executive Board of the Co operative League (of the U. S. of A.) has decided to take one of these bonds. The recent annual meeting of the Ex change unanimously endorsed the ac tion of their board in floating this bond issue and published an appeal to all the affiliated societies to subscribe liberally to these bonds. Last, but not least, we should report on the activities of the Educational De partment of the Co-operative Central Exchange. During the year 1922 the director of the educational department delivered altogether 74 speeches and lec tures on Co-operation (64 of these in Finnish and 10 in English). The total attendance at these meetings was about 3500. He was also present at 16 differ ent membership meetings of various so cieties and besides that at 10 meetings of the Board of Directors. The Tyomies (Workman), a Finnish Socialist Daily, published in Superior, devotes one page weekly to discussion of Co-operation and to printing of news of interest in the Co-operative Movement. During the last year there was something from the pen of the educational director in 34 issues out of 52; articles, announce ments, appeals to the membership, re ports of conventions and meetings at tended, 'etc. A year ago the educational department published a book in Fin nish, under the title of " Osuustoimin- taopas" (The Co-operative Guide). This book will be used as a textbook in Co-operation at the future courses for the training of co-operative employees. Such a course, or rather a school, last ing for six weeks, will be organized by the Co-operative Central Exchange in Superior again next fall. This month the Educational Depart ment of the Exchange will issue a 32- page pamphlet (in Finnish), contain ing information and advice useful in organizing and managing Co-operative Buying Clubs (The Exchange has at present over 20 of such clubs affiliated with it). The above described activities cover only a part of the duties of the Educa tional Director. He has also to circu larize the different affiliated societies from time to time, giving them technical advice concerning certain problems of CO-OPERATION 103 management, etc.; gather statistical data about the co-operative societies and tabulate the same; help the societies in securing capable and honest managers, bookkeepers, etc., and furnish them at request information concerning these; spread and help to spread co-operative literature; assist in organizing new co operative societies, etc. The Educational Director of the Cen tral Exchange happens also to be the Secretary of the Northern States' Co operative League ( a district league of the national Co-operative League), or ganized a year ago. This young organi zation has already a membership of over 12,000 and its activities are expected to increase considerably during this year. Among other things the Northern States' League is now active in organizing a school in English for the training of employees for co-operative societies, similar to the school conducted by the Central Exchange in Finnish in Su perior, Wis. S. A. A NEW CO-OPERATIVE SCHOOL The New School for Social Research in New York is making another inter esting experiment — co-operative this time. The school, established in 1919, grew out of a revolt against the old line college dominated by reactionary interests. The directors are men and women of the most progressive social ideals. The list of teachers has in cluded such well-known educators as John Dewey, James Harvey Robinson, Robert Morse Lovett, Horace Kallen, Alvin Johnson (editor of the New Republic), Leo Wolman, etc. The stu dents are almost all college graduates who desire to do advance work under the most modern educational methods and in an atmosphere free from the domination of executive machinery, strict supervisory discipline and the other hampering influences of the modern institution of higher learning. The experiment has been closely watched by educators in all parts of the country. Now co-operation is being tried out at the New School. One or two of the people who are deeply interested in this school attended the Chicago Co-opera tive Congress and heard the discussion on co-operative education. Mr. Alvin Johnson later got in touch with the staff of The Co-operative League. He wanted to see if this experimental enterprise could not go much farther than it has yet gone, putting control into . the hands of the students them selves on the Rochdale co-operative plan. As a result of all this and with the active co-operation of Dr. Ainsley, the director, and a few of the most interested students, a plan was worked out and submitted to a meeting of two or three dozen students several months ago. Other and larger meetings have been held since then. There are about 700 men and women students here. It is planned to make this co-operative feature entirely vol untary at first, supplementary to the regular school organization. As many as are interested in the experiment will sign up for courses to be voted upon. Teachers for these particular courses will also be selected democratically by the co-operative students. Those who do not want to go in on the co-operative enterprise can continue to take courses under the old plan for a year or two more. The leaders hope, however, that ultimately all students will vote for this co-operative method of control, and the whole administration can then be turned over to them. The old directors stand ready to step out immediately the stu dents take charge. The co-operative group is already vot ing on courses offered for next year. They are choosing between Bertrand Russell, John Dewey, Hendrik "Willem Van Loon, Alexander Fisher, and Arne Fisher. So far the co-operative group has a committee of eleven in charge. There are three subcommittees,—one on methods of study; one on choice of courses, and one on student relationship. Research work by small groups or indi viduals will be financed from the sur plus made on the most popular courses. The three co-operative preparatory schools in Greater New York have been written about many times in CO-OPEKA- TION. It is to the success of these demo- 104 CO-OPERATION cratically controlled night schools that the New School owes much of its in spiration. Never before in this country (nor in any other country known to The Co-operative League) has the Roch dale principle been applied to education in a graduate school. Here may be the germ of the free college of the future, the solution for our slavish and spiritu ally degrading system of so-called "higher education." Full particulars regarding this course appear on page 106 of this issue of CO OPERATION. UTICA ON TOP AGAIN In 1921 the Utica Co-operative So ciety paid only interest on share capital and distributed no rebates to members. At the end of 1922 the report showed that the Society had not only done well enough to return rebates, but that these rebates were larger than for six or seven years. On total sales of $99,057, 6 per cent was returned to members on cash and carry trade and 5 per cent on other trade; 3 per cent to non-member cash and carry trade and 2% per cent on other trade; $1,091 went into the Re serve Fund and $207 to the Educational Fund. The Society has never been in a stronger position financially, reports Richard Henschke, the manager. In previous years this Society has re turned rebates in the form of credits at the store. This year the rebates were paid in cash, and the members liked the new plan much better. A few of the directors wanted to make the rebate re turn much smaller than it was and put a larger amount into the Reserve Fund, but they were overruled by the member ship. It has become a common belief among co-operators that the co-operative store cannot win its way in a city in the eastern part of the country, in competi tion with the chain stores. The Co-ope rative at Utica shows what can be done even in such a chain-store center as New York (the state with the largest number of chain stores in the country). To be sure, the bakery has been a great factor in this success; but other co-operatives could start the bakery and the grocery business together, too. A CO-OPERATORS' DAY "Co-operators of the world, unite. The fields of your activity are white unto the harvest; the laborers are steadily increasing; the opportunity is great, and the glorious harvest that awaits you is a world saved for peace by co-operation." So runs the manifesto recently adopted by the International Co-opera tive Alliance, to be used as a rally cry for co-operation the world over on Co- operators' Day. The date fixed for Co-operators' Day in all European countries is the first Saturday in July, the 7th. On that date the co-operatives of thousands of cities and towns will hold great co-op erative demonstrations, the international co-operative flag will be flung loose from countless co-operative buildings, and a great drive will be launched everywhere for renewed loyalty of old members and new recruits to the movement. This day will be for Co-operation what May 1st is for Labor. American co-operators should take up this International Co-operative Day and put it to the service of the movement. Societies should arrange meetings, pic nics, and parades; house to house can vasses to increase the local membership; loyalty demonstrations at which the old members will pledge a more steadfast allegiance to the society; a banquet in the evening. A special effort should be made to get the active participation of the women and children. CO-OPERATION 105 At the Chicago Convention the Edu cational Committee discussed the Co-op erator's Day at some length. Much of the sentiment then seemed to be against a July date and in favor of a date in the spring or autumn. Recently the European countries have gone in so wholeheartedly for the first Saturday in July that it seems to the Executive Board of The League that American co- operators should not try to establish a different date until we have at least made an effort to unite with Interna tional co-operators on this matter. Societies which feel that one day is not long enough for effective work might carry their initial preparations through out the entire week, having the celebra tion culminate on Saturday. Or if it appears that the 4th of July is a better day for a good celebration, then the local society might use that day. Or an attempt might be made to start the co operative campaign on the 4th and have it run until the night of the 7th. For a few years we shall need to experiment and see what program works best. But co-operators the world around must ultimately unite in the celebration of a Co-operators' Day. BOOK REVIEW A NEW BOOK ON CO-OPERA TIVE BANKING "Co-operative Banking" by Roy F. Bergengren, published by the Macmil- lan Company, is a much needed book. It is the first book on this subject that has been published in this country since Herrick and Ingalls brought out their "Rural Credits" in 1914 and Henry W. Wolff his "Co-operative Credit for the United States" in 1917. Mr. Bergengren's book is devoted es pecially to a study of the credit union. This is the seed from which co-operative banking grows. It is the most useful form of banking. Mr. Bergengren shows how it promotes thrift, eliminates usury, and it provides the farmer and artisan with short-time credits at a minimum cost. The book goes farther: it gives the reader a vision of how the whole capitalistic banking system might be supplanted by the extension of co operative banking. It shows how bank ing for service may be brought to the masses of people who need it, and how banking may be organized so as to pro mote democracy. This is in strik ing contrast to the prevalent method of banking, which is conducted in the in terest of the few stockholders who ex ploit the credit of the masses, and create an aristocracy of financiers, a situation which is blowing up a bubble of in flated securities the end of which can only be collapse and panic. Mr. Bergengren has assembled the in formation on the status of co-operative banking in the United States where there are steadily growing up some splendid examples of this form of credit. The great obstacles against which it has had to contend are obvious. This form of co-operative achievement has not come about spontaneously; it has meant solid work, thoughtful devotion to the cause, and persistence in the face of many discouragements. When the masses shall have freed themselves from the real causes of their oppression, when the emancipated United States shall come into existence, the gratitude of the people will not go to statesmen and warriors but to the quiet men who have patiently built the foundations of freedom in the economic life of the nation. Mr. Bergengren has properly dedicated this book to Edward A. Filene, who has done so much to promote in the United States this great cause—the placing in the hands of the people the democratic control of their own finances. J. P. W. 106 CO-OPBEATION FROM THE LEAGUE HEADQUARTERS LECTURE COURSE IN CO OPERATION This summer a course of twelve lec tures on the Co-operative Movement is to be given at the New School of Social Research, New York City, during the summer term of that school, which runs from June 25 to September 15. The lec tures are given Wednesdays from 5:20 to 6:50 P.M. June 27. The Place of the Co-opera tive Movement in Modern Life and Thought: Some current errors in eco nomic thinking; the need of an under standing of the Co-operative Movement; its aims and methods. Mr. Warbasse. July 4. Why Co-operative Stores Started in the Early Nineteenth Cen tury: Eighty years of steady develop ment; the expansion of the co-operative principle into other fields of commercial and industrial activity. Mr. Warbasse. July 11. "The Houses of the People" in Belgium: How Belgium labor unites its consuming, producing and political power; co-operative education in the United States. Agnes D. Warbasse. July 18. Germany, the Cradle of Co operative Banking: The place of People's Banks and Credit Unions in the American labor movement and among farmers. Walter McCaleb. July 25. Co-operation in Russia Be fore and After the Soviets: The rela tion of co-operation to political action and the state; voluntary versus com pulsory association. Mr. Warbasse. Aug. 1. Labor Syndicates in Italy: Co-Partnership workshops; what the Amalgamated Tailors, the Cigar Makers, and other producers have tried to do in this country. Cedric Long. Aug. 8. Co-operative Health and Housing: Where co-operative homes are supplanting the landlord; co-opera tive insurance and medical clinics abroad and in the United States. Agnes D. Warbasse. Aug. 15. Self-Help Organizations Among Farmers Here and Abroad: Five billion dollars turned over annually; agricultural co-operation in 1922. Ced ric Long. Aug. 22. The United States: Land of Experiment and Opportunity; of Frauds and Failures: The stores and wholesales we have and why they are so few; the new outlook. Mary Arnold. Aug. 29. Consumers' Control: the Reconciliation of Democratic Adminis tration with Technical Efficiency: The place in the co-operative for the expert accountant, the engineer, the psycholo gist, the surgeon, the bacteriologist, and other experts; the great progress in Germany and Holland. Agnes D. War basse. Sept. 5. The Position of the Em ployees under Co-operation: The recon ciliation of discipline with co-operation; the working out of these theories in typical societies. Cedric Long. Sept. 12. The Elimination of the Profit Motive in Life and Industry as the Goal of Co-operation: "Produc tion for Use" in theory and practice; the ethical basis of the Co-operative Movement. Mr. Warbasse. Tuition for the course is $15. Regis tration begins June 18 at the office of the New School, 465 West 23rd Street. CHAIN STORE ATROCITIES Funicielli is a second generation Italian, who passes among his friends by the name of "Funny." Funny runs a small chain store on the outskirts of one of our largest cities. He is not the most clever manager in the world nor is he highly successful; but he does roll up a little surplus each month and there fore has some value in the eyes of the company. Funny's methods are not unique; they are practiced by all chain store managers and by most private grocers as well. Cheese, butter, and other goods that can be sold by the piece or cut never weigh up to a precise pound or an even half-pound. There is al ways an odd few ounces one way or the other. Funny is adept at whisking such CO-OPERATION 107 goods on and off the scales so quickly that the customer cannot even count the odd ounces, let alone calculate their value. The manager makes an over charge of from three to fifteen cents on all such goods. During a busy day Funny sells as high as seven or eight hundred pounds of sugar, the average purchase being from three to five pounds. When the price is on the odd cent—seven or nine cents a pound—he and the clerk do up the suger in packages of three or five pounds or other odd numbers wherever possible, for a half a cent is to be saved in this way and half a cent on sugar is worth watching. Customers who ask for two, four or six pounds are in formed that "we carry only three- and five-pound packages." To be sure some people call this bluff and insist on the amount they really want. Funny keeps under the counter a few packages weighed up on the even pound for such emergencies. But these petty devices for defraud ing the public and dozens of others like them are the rule in all stores. Funny prides himself most on the trick he has developed for beating his company occa sionally. Few managers can get from their employers anything that does not belong to them; and Funny boasts of this accomplishment to all his friends. Very often the company sends down an order to lower (or raise) the price of a certain commodity and to render a re port to headquarters at once as to amount of such goods on hand. For in stance, a certain grade of beans drops from twelve to ten cents a pound. Funny has twenty pounds in stock. By reporting that he has one hundred pounds he gets credit at headquarters on his inventory sheet for eighty times two cents or $1.60, which really belongs to the company. If he runs short of these beans within a day or two he sends the boy down to another store to buy a sup ply so that he will not have to put in a new order too soon. To be sure he keeps the old 12c tag on the beans as long as possible also, in order that he may squeeze a few extra pennies from the purchasing public, but his chief pride is in beating his company. If they advise him to raise the price of coffee two cents he reverses the process and instead of reporting a stock of 200 pounds reports 60 or 80. Funicielli is neither a shrewd busi ness man nor a very successful salesman. His store is as shabby and common place as his penny-snatching devices. He probably will not last long. But the ease with which he piles up eight or ten dollars extra each week (some of which goes into his own pocket) is an indica tion of what an easy game it is to ex ploit the consuming public. DO YOUR CLERKS HAVE VACATIONS? Do You Want to Take On for a Few Weeks a Bright Young "Student- Clerk" Who is Eager to Know More About Co-operation? In the United States there are hun dreds of young men and women who want temporary training in co-operative work. Some of the most promising of them are students at labor colleges. There are dozens of labor colleges throughout the country, at least one of them a full-time resident college with a two-year course of study. Most of the students in the latter school and many of those receiving labor education in the ordinary night classes for workers would like to have a taste of active work in the labor or co-operative movement during the summer months. It is so much bet ter than working all the time for the capitalist employers! Why should not some of these people fit into the store or bakery or restaurant or creamery during the time when regular co-opera tive employees are away on vacations? Our co-operative stores should not hire mere wage hands. They should, when ever possible, have student-clerks, and thus contribute to the movement for co operative education. The student-clerk who comes to you from another city will bring with him a contribution of some new ideas to your society. Better yet, he will carry back to his own group the co-operative message from your society. Why not join this movement which at one and the same time spreads the co- 108 CO-OPEEATION operative gospel and trains future co- operators ! Our movement needs trained workers very badly. We shall have an efficient and devoted body of employees and of ficers just as soon as the societies them selves enlist in the campaign to train them. It is already late to be launching this year's campaign. But let us do what we «an. If your society is willing to be come one unit in this National Training School for Co-operators, write to The League office telling us how many stu dent-clerks you can take; whether men or women are desired; about how much you can pay; when and for how long you want them. SUBSCRIPTION OFFER Any subscriber who sends in five or more new subscriptions at one time will receive free a choice of one of the fol lowing books: CONSUMERS' CO-OPERATION (cloth), by Albert Sonnichsen. EURAL RECONSTRUCTION IN IRELAND, by Smith-Gordon & Staples. TRANSACTIONS OF THIRD CO-OPERATIVE CONGRESS (Chicago). CO-OPERATION, Vols. VI, VII or VIII (bound volumes, 1920, 1921 or 1922). Any subscriber who sends in three or more new subscriptions at one time will receive free a choice of one of the follow ing: CO-OPERATION, THE HOPE OF THE CON SUMER (cloth), by Harris. CONSUMERS' CO-OPERATIVE SOCIETIES (paper), by Gide. PEOPLE'S YEAR BOOK, 1923 (paper). THE CO-OPERATIVE MOVEMENT (in Yiddish), by A. Stolinsky. This offer holds good until October 1, 1923. CO-OPERATIVE CALENDARS The Co-operative Calender which has been prepared for 1924 by the Co-opera tive Central Exchange of Superior, Wis., has just been received at the office of The League. Unlike some of the earlier cal endars, this one is designed to have propaganda value. The picture, in three colors, contrasts the difficulties of the individual farmer pushing home on an old wheelbarrow his sacks of feed with the co-operative farmers who are speed ing along the highway in a big motor truck piled high with goods from the local exchange or store. In previous years the Central Ex change has placed these calendars in co operative homes all over the United States, distributing many thousands of them through the co-operative societies of the country. Those who are inter ested in finding out more about these and getting in an order for them early should consult the advertisement on the last page of this number of CO-OPERA TION. CONFERENCE OF ILLINOIS CO OPERATIVE SOCIETIES At the hour this magazine goes for the last time to the printer, notice comes of a Conference of the Independent Co operative Societies in Illinois, called by the Central States C. W. S. and a few other societies, which is to be held at East St. Louis, June 18th and 19th. This is an important meeting. All Managers should be present, and at least one Director from each society. Plans for more effective joint buying and for educational work will be worked out. "CO-OPERATIVE BANKING" A Credit Union Book This is the title of a new book (re viewed elsewhere in this issue) written by Eoy F. Bergengren, Executive Secre tary of the Credit Union National Ex tension Bureau. Some of the chapters are on the following subjects: Thrift Usury Wasted and Hoarded Savings Co-operative Buying The Installment Problem Sane Investments Farm Tenancy. The book may be procured directly from The League. Price, $3.00. CO-OPEEATION PUBLICATIONS of THE CO-OPERATIVE LEAGUE HISTORICAL Per Copy 3. Story of Co-operation .........................................................$ .10 7. British Co-operative Movement ............................................... .10 38. Co-operative Consumers' Movement in the United States....................... .05 39. Consumers' Co-operative Societies in N. Y. State, (Published by Consumers' League). . . . ............................................................. .10 TECHNICAL 4. How to Start and Bun a Rochdale Co-operative Society....................... .10 5. System of Store Records and Accounts......................................... .BO 6. A Model Constitution and By-Laws for a Co-operative Society................ .05 8. Co-operative Education. Duties of Educational Committee Denned.......... .10 9. How to Start a Co-operative Wholesale....................................... .10 27. Why Co-operative Stores Fail.... ............................................. .02 2. Co-operative Store Management................................................ .10 14. How to Start and Run a Women's Guild....................................... .05 IB. How to Organize a District Co-operative League.............................. .10 29. Credit Union Primer (By Ham and Robinson)................................ .2B MISCEIi,ANEOUS Model Co-op State Law........................................................ -10 Syllabus for Course of Lectures, with References and Bibliography.......... .2o Producers' Co-operative Industries............................................ -10 Control of Industry by the People through the Co-operative Movement...... .10 Credit Union and Co-operative Store.......................................... .05 Co-operative Movement (Yiddish).............................................. .02 Farmer's Co-operation (By Benson Y. Landis)................................ .IB Co-op Homes for Europe's Homeless.......................................... -10 Co-operative Housing. . . . .................................................... .10 " When the Whistle Blew " (Story, by Bruce Calvert)......................... .06 PerlW $6.00 6.00 4.00 4.00 2.60 1.00 16. 17. 46. 12! CreditTunion "and "Co-"operative 'store. T ]?."....."..."... .1.."...................... .05 1.75 34. Co-oneratlve Movement (Yiddish).............................................. .02 1.25 41. 42. 43. 30. ONE-PAGE (One cent each; BO 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 Real Co-operator; (25) Resolutions Adopted by A. F. of L.; (26) Factory Workers Co-operate I; (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 Right to a Job; (48) Tips to Co-operators MONTHLY PUBLICATIONS CO-OPERATION—(In bundle lots, $7.50 per hundred). Subscription, per year..............$1.00 HOME CO-OPERATOR, 4 pages......................................................... .$1 per 100 INTERNATIONAL CO-OPERATIVE BULLETIN (Pub. by The I. C. A.)......... .per year, $1.50 BOOKS The following books are recommended as containing the best discussions of the modern Co-operative Movement. They may be ordered through The League: Bergengren, Roy F.: Co-operative Banking, A Credit Union Book........................ .$3.00 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, 1021............................................. 2.50 Gide, C.: Consumers' Co-operative Societies, American edition and notes, 1922. Cloth, $3.00; paper bound................................................................... .90 Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, $2.00; paper bound. . . . . ............................................................................... .60 Holyoake: Rochdale Pioneers................................................................. 1.00 Howe, Fred C.: Denmark, a Co-operative Commonwealth, 1921............................... a.00 Madams, J. P.: The Story Retold............................................................. .50 Nicholson, Isa: Our Story.................................................................... .25 Potter, B.: Co-operative Movement in Great Britain.......................................... 1.00 Powell, G. Harold: Co-operation in Agriculture. Macmillan................................. l 50 Redfern, Percy: The Story of the C. W. S................................................... 2.00 Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918.............................. 1.50 Redfern, Percy: The Consumers' Place in Society, 1920...................................... 1.00 Smith-Gordon: Co-operation in Many Lands, 1920............................................ 1.go Sonnichsen, Albert. Consumers' Co-operation, 1919. Cloth bound, $1.75; paper bound ... 7S5 Stolinsky, A.: The Co-operative Movement. In Yiddish....................................... 1.00 Webb, B. and S.: The Consumers' Co-operative Movement, 1921........................ ..... E 00 Webb, Catherine: Industrial Co-operation, 1917............................................. 1.60 Woolf. Leonard: Co-operation and the Future of Industry............................'.......'. 1.30 Woolf, L.: Socialism and Co-operation........................................... 150 " The Co-operative Consumer" and " Co-operation," III (1917), VI (1020), VII (1921) VIII (1922). .... .........................................................................'...... 1.28 Transactions of Second American Co-operative Congress, 1920.................................. 1.00 Transactions of Third American Co-operative Congress, 1922.............. 100 The People's Year Book, 1923. Cloth, .80; paper bound.............................'..."...'.. '.50 (Ten cents postage should be added for books which cost more than $2.00, and five cents for the smaller books.) THE CO-OPERATIVE LEAGUE (Member of The International Co-operative Alliance) 167 West 12th Street, New York An educational organization for teaching the history, principles, methods and aims of the Co-operative Movement and for the promotion of Co-operation in the United States. Join The League and thus help promote the educational work of the Co-operative Movement. Individual Membership, $1.00 a year. Subscribe for CO-OPERATION, the Montllly Magazine of The League, and keep in touch with the Movement. Enclosed find $......... for Subscription for CO-OPERATION, $1.00. Membership in The LEAGUE, $1.00. Name. Address. Date.... Co-operative Calendars not gaudy, meaningless pictures, but Calendars that carry a message of Co-operation 365 days in a year. Ask for our prices and samples Co-operative Central Exchange SUPERIOR, WIS. The Canadian Co-operator Brantford, Ontario, Canada The organ of the Canadian Co-opera tive Movement, owned by and con ducted under the auspices of The Co-operative Union of Canada. Published monthly 75c per annum The Madras Monthly Bulletin of Co-operation ROYAPETTAH, MADRAS, INDIA The only periodical on Co-operation in India. Special articles on Rural, Con sumers', Agricultural, Credit and Indus trial Co-operation; and Co-operation Abroad. Subscription Rs. 4/12 per annum. 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, C 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. 6d. a year. The Trade and Technical Organ of British Co-operation. THE HOME CO-OPERATOR A four-page magazine for use in co-operative societies. Issued monthly, in bundles, $1 per hundred. Published by The Co-operative League Publishing Office, Willimantic, Conn. Albert Sonnichsen, Managing Editor. (OOFOTON A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in voli 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. 7 JULY, 1923 10 Cents VITAL ISSUES CO-OPERATIVE HOUSING At Woolwich, a suburb of London, the co-operative society bought with its surplus savings several acres of land and built a little village of very comfortable houses. These are good houses. The society sold them at cost to its members, who thus got great bargains in real es tate. The value of these houses has in creased so enormously over what they cost that any member can now sell his property and come out with a handsome profit. And that is just what is happen ing. It is hard to resist the temptation. This may be designated as the British method. It is a common practice. It is the method that turned Letchworth vil lage from a garden of idealism into a speculators' paradise and dropped it out of sight as a social enterprise. The co-operative societies of Germany, Switzerland, and Denmark follow a dif ferent method. The society buys the land, builds the houses, and always re tains possession of them. It rents the houses to its members for a long term. The customary lease is for ninety-nine years, with the privilege of renewal! That means that so long as the member or his children, or their descendants, re main in the society, and want the house for residence purposes, it is theirs. The result is that the houses are well cared for; they never go into the market for real estate speculation; they continue to be a part of the great Co-operative Movement; the members are held to gether to carry on other co-operative enterprises; and Co-operation is per petuated. This is the continental method. It is true Co-operation. It is the method that is dotting the whole continent of Europe with co-operative villages and establish ing the co-operative principle in per manent form in the lives of the people. It guarantees that a house will be used for housing purposes and not for specu lation. The house must always remain the property of the group. If a person has the perpetual use of a house that he selects, what more does he need? If he had the title in his own name there is only one more thing that he could do with the house—he could speculate in it as real estate. If he wants to be a real estate speculator, he does not want to be a Co-operator. As an individual owner with a deed, if he does not pay the taxes, or the mort gage, he loses his home. If he needs money or wants to move away, he has to sell the house. On the other hand, ownership of shares in the co-operative society, with houses, gives the member the right to the occupancy of a house on a rental basis; and that house can be just as much secured to the member by a lease as by a deed. In the co-operative society he may turn in his shares and take back his 110 CO-OPERATION money. In one case Ms money is in vested in a co-operative society; in the other, his money is invested in real es tate. We should keep these facts clearly in mind in the development of co-opera tive housing in this country. J. P. W. WHERE ARE OUR CITY CO OPERATIVE STORES? The C. W. S. in 1893 conducted an inquiry into the reasons for the failure of co-operation to expand in London. It found' that in 1881-2 there were seventy-three societies started in London, all of which failed during those two years. ,,. So runs an item in The Co-operative News of England. Co-operators in the larger American cities may find some comfort in such a report as this. Prob ably New York has had as many co operative failures as any city in the country, yet the most bitter enemies of Co-operation cannot boast that New York has had as many as seventy-three failures in two years. Nevertheless, we have something to learn from the experience of London and of our own metropolitan centers. Until a few years ago London was un able to keep a respectable co-operative store society alive, and really solved the problem ultimately by amalgamating many of the small groups into a few large and powerful ones. In the cities of Boston, New York, Baltimore, Phila delphia, Pittsburgh, Cincinnati, St. Louis, Kansas City, Denver, Los An geles, San Francisco, there are not ten store societies all together; yet there have been hundreds organized. The first reason for this situation is, of course, lack of co-operative understanding and education. But the difficulty is bigger than that. Have we the right technique? There are two roads we can follow in our attempt to solve this problem: 1. We can, following the tradition of Rochdale, continue with the attempt to organize co-operative stores in our large cities and make every effort to unite the local groups in one city into a large and powerful fighting organization which can make its way against the powerful chain stores. One or two cities, such as Chicago and Cleveland, already have three or more store societies which might consider the advisability of amalgama tion. 2. We can, for the present, leave the organization of stores to the towns and villages where chain store competition is not so keen, and concentrate on other lines of activity. The chain store has revolutionized the grocery business. Co- operators should not stick to the or ganization of the store just because twenty-eight weavers started there in 1844. Granted that the largest pro portion of the workers' wages go to the grocer and butcher; nevertheless, there is a smaller margin of profit in that business than in any other for the lit tle co-operative society which tries to compete with the powerful cor poration. And it is this operating margin which makes or breaks a so ciety. Perhaps the urban co-operators should deliberately choose a field where there is a very large margin of safety. In the most congested cities, Housing offers one suggestion: the private land lord is making money rapidly, and a well-managed housing society should be able to charge rentals that are below the market rate and still have a surplus left. In the field of credit there is even less competition. The little Credit Union (co-operative bank) provides loans to the small wage earner on terms that no private loan agency can begin to dupli cate. With a credit union organized and functioning, a group could easily raise the capital to go into housing, bread baking, selling of groceries and meat, or any one of a dozen other enter prises. In some of the European and Asiatic countries there are credit unions which are doing all the buying of the necessities of life for their members. The co-operative store in the city is a problem that we in the United States have not yet solved. And we never will solve it so long as we merely imitate the example of other countries where the movement has been well established for many decades. We can go on fighting the chain stores and perhaps defeat them; but we shall act wisely if we think through the whole problem most care fully. C. L. CO-OPERATION 111 ABOUT CO-OPERATIVES AND RATS In our younger days the family had a large and wise old cat. This animal was adept at sneaking down to leeward of an unsuspecting rat engaged in noth ing more criminal than a bit of explora tion after food. Once within striking distance the cat would make a dive for the rat-hole to cut off any retreat; then, backing the trembling victim into a cor ner, happy in his anticipation of a good dinner, Friend Cat played his little game, dancing to and fro before the terrified rodent, boxing him now on one ear, now on the other. And the cornered animal one moment made a futile dash for freedom, the next moment shrieked and sprang at his tormentor. One of the most frequent complaints that come from co-operative societies to The League is t