The source of this uncorrected OCR text may be viewed in the DjVu format at: http://fax.libs.uga.edu/HD2951xC776/co27 or http://purl.galileo.usg.edu/ugafax/HD2951xC776/co27 COOPERATION s PUBLISHED MONTHLY BY The Cooperative League of U. S. A. VOLUME January—December COOPERATIVE LEAGUE OF U. S. A. 167 West 12th Street, New York City 1927 INDEX PAGE Achievements of Cooperation...................................................... 30 Address at Omaha, Nebr.......................................................... 20C Advertising ..................................................................... 37 Agricultural Cooperation....................................................... 148, 178 Agricultural Colleges Organize Cooperation, Can.................................:.. 97 Agriculture Languishes............................................................ 164 Alanne, V. S...................................................................... 54 Amalgamated Homes.............................................................. 72 Armenia, Cooperative Agriculture in............................................... 69 Askeli, Henry.........................'........................................... 153 Austrian Union Dues.............................................................. 70 Automobile Services, Cooperative .................................................... 110 B Bank, Cooperative ............................................................... 192 Banking Law in Iowa............................................................. 108 Banks, How the Farmers Lose with the............................................ 71 Banks, Labor..................................................................... 144 Benefits Go—Where the.......................................................... 190 Big or Little Societies, Which?.................................................... 27 Bloomington Cooperative Society................................................ 81, 191 Bluefield Institute Cooperative Store................................................ 211 Book Publishers, Non-profit....................................................... 10 Book Eeviews........................................... .38, 57, 115, 135, 155, 174, 237 Branch, E. E..................................................................... 201 British Cooperative Party......................................................... 30 Brookwood Cooperative Store...................................................... 191 Building and Loan Associations Grow.............................................. 92 Business Basis of Cooperative Undertaking........................................... 156 Business, Cooperative or Municipal................................................ 88 Business Is Good (Rhyme) ........................................................ 78 C Capitalism, Can We Democratize.................................................. 46 Central Exchange........................................................... 54, 91, 151 Central States Co-operative League.............................. 12, 37, 76, 95, 130, 193 Central States Cooperator.......................................................... 76 Chain Stores in U. S..........................................................110, 167 Chain Stores Multiply, How the.................................................... 33 Chambers of Commerce and Cooperation............................................. 66 China, Cooperation in..........................................................69, 87 Cleveland, Ohio, Cooperative Boarding House...................................... 72 Co-operative Coal Co........................................................ 31, 112 Largest Co-operative—Workingmen 's........................................... 31 Cloquet Minn., Cooperative -Society.............................................. 72, 193 Closser, W. H..................................................................... 78 Coal, The English Wholesale and.................................................. 169 College Cooperation, Politics Hits.................................................. 223 Company Grocery Stores Closed.................................................... 187 Comparative Figures in the U. S................................................... 74 Conference at Hudson Guild Farm.................................................. 213 Congress, Fifth Co-operative (U. S. A.) ............................................ 7, 26 INDEX PAGE Congress, International......................................................... 182, 185 Consumers' Cooperative Services..............:................................. 192, 232 Consumers in Wonderland......................................................... 85 Consumers' Theory................................................................ 171 Convention Agenda, Northern States League....................................... 133 Convention, Eastern States League................................................. 94 "Cooperate" (Rhyme). .......................................................... 19 Cooperation a Fact............................................................. .5, 186 Cooperation a Habit.............................................................. 163 Cooperation and the Staff of Life.................................................. 235 Cooperation as Socialism in Practice.............................................. 70 Cooperation on the Grand Scale..................................................... 227 Cooperation, What Is?........................................................ 138, 237 Cooperation Democracy—Book Eeview.............................................. 38 Cooperative Education............................................................. 131 Cooperative Ideals and Problems................................................... 115 Cooperative League of Nations.................................................... 122 Cooperative League Report........................................................ 14 Cooperative Movement, A Short Description of...................................... 4—5 Cooperators De Luxe.............................................................. 206 Cooptimist, The................................................................... 19 Correspondence School................................................... 35, 54, 93, 234 Corey, Lewis...................................................................... 46 Countries Becoming Cooperatized, Are the......................................... 189 Credit...................................................................27, 131, 196 Credit Against Share Capital..................................................... 77 Credit Union Adviser.............................................................. 34 Credit Unions.......................................................22, 23, 24, 50, 152 Credit Unions, Endorsement of.................................................... Ill Crockett, Leon O.................................................................. 98 Cutting, C. M.................................................................... 58 Dairymen's League.................'.............................................. 38 Danish Cooperative Store in California............................................... 2 Deeimo Club...................................................................... 109 Delegates to International Congress, Names of...................................... 8, 181 Democracy, Bankers, etc. ......................................................... 60 Democracy in Farmers' Organizations.............................................. 28 Democratic Control of Cooperatives................................................ 34 Denmark, Cooperative. . . . . ....................................................... 208 Denver Cooperatives.............................................................. 236 Des Moines, la...........................................................'......... 197 Dillonvale, Ohio, Cooperative Society.......................................... 8, 9, 191 Directors of the League Meeting.................................................. 229 Directors, Responsibilities of....................................................... 173 District Leagues.. ............................ .11, 37, 55, 76, 94, 113, 130, 166, 193, 213 Dividends on Purchases............................................................ 68 E Eastern States Cooperative Societies. .................................... .5, 11, 194, 234 Eastern States Cooperative Training Schools...................................... 89, 126 Eastern States League Convention.............................................. 94, 113 Education Committee for Greater N. Y............................................. 91 Education, Do Cooperative Officials Need.......................................... 32, 225 Employees, Educating the Cooperative..........'............... .38, 96, 114, 133, 153, 196 Endowment Fund, League...,.,.. .^. ...*., ,r....................................... 192 INDEX PAGE England, Political Agreement in................................................... 127 England, Politics and Taxation in.................................................. 88 Escanaba, Mich................................................................... 193 Escaping the Loan Sharks—Mexico................................................ 75 Essay Contest on Cooperation.................................................. 73, 127 Europe Has Given America, What Is It................:........................... 224 Executive Board Meeting............................................................ 13 F Fail, Why Cooperative Societies.................................................... 172 Fake "Cooperative" Society of America. ........................................90, 109 Farmer Cooperatives............................................................ 28, 163 Farmer Cooperation, Philosophies of................................................ 72 Farmer, Does Prosperity Depend on the............................................ 125 Farmers as Consumers............................................................ 232 Farmers' Cooperative Holds a Monopoly............................................ 34 Farmers' Cooperative Wholesale.................................................... 55 Farmers Lose with Private Banks.................................................. 71 Farmers Members of More Than One Cooperative. ................................. 152 Farmers, Productivity of.......................................................... 31 Farmers' Profits.................................................................. 190 Fascist Cooperation................................................. .* ........ 107, 147 Fascist Persecution in South Tyrol.................................................. 30 Figures, Comparative............................................................ 53, 74 "Finco Forum, Tour".. .......................................................... 113 Finland, Visitor from............................................................. 189 Finnish Cooperative Boarding Association.......................................... 72 Finnish Cooperative Trading Association.......................................... 93, 111 Fire Insurance Co., Cooperative..............................................32, 41, 92 Fitchburg, Mass., Cooperation in.... .f....................................... 23, 73, 91 Flour.......................................................................... 16 Flour Mill in Sweden.............................................................. 123 Fogelson, Ola. . . . ............................................................... 189 TToreign Figures.................................................................. 29 Fort Bragg, Cal..................................'................................. 106 Franklin Creamery............................................................. 34, 70 Freundlich, Emmy................................................................ 10 G Gary, Ind......................................................................... 153 Gas and Oil Stations, Cooperative.................................................. 166 Gide, Charles..................................................................... 235 Good and Bad of It............................................................. 186 Government Officials, Cooperators as.............................................. 169 Great Britain, A Bad Tear in.................................................... 190 Great Britain, Propaganda Campaign in............................................ 106 Greenstein, Abraham.............................................................. 72 H Hail 1927........................................................................ 4 Halbrook, W. E................................................................... 75 HaH, Fred....................................................................... 171 Handbook for Coop. Employees.................................................... 38 Headgear Workers Cooperative Credit Union.................................... 25, 111 Hedberg, Anders.................................................................. 137 Heresy, Is This.................................................................. 86 Herman, Mich..... • 34 INDEX INDEX High School Children to Study Cooperation.......................................... 91 Hildebrand, Karl................................................................. 156 Hilton, Oscar. .........................................-.........••••••••••••••••• 165 Hinton Cooperative Mercantile Co. .............................................. 101, 102 History of Socialist Thought .................................-.....----••••••-•-••• 155 Honors for European Cooperators.................................................. 10 Housing, Cooperative .......................•.••••••••••••••••••••••••••••••••••••• 72 Hungary, Where Is Cooperation Headed in.......................................... 87 I Individualistic Cooperation........................................ ............... 235 Illinois, Consumers Cooperation in.................................................. 57 Impressions of the Stockholm Congress..............................;............... 185 Installment Buying. ............................................................... 27 Insurance...........................................................-32, 42, 192, 202 International Alliance, ........................................... -30, 122, 129, 182, 185 International Day................................................................. 114 International Economic Conference.............................................. 10, 148 International Wholesale Cooperation................................................ 137 Italy's Pioneer Cooperator........................................................ 88 K Kaufman, W. H.. ............................................................. .58, 138 Kincaid, Illinois ..........................••.....••••••..••••••••••••••••••••••••• 92 L Labor, Hiring............................•••.••••••.••••••••••••••••••••••••••••• 165 Labor Ownership .................................................................. 85 Labor Party and Cooperators Confer................................................ 30 Laidler, H. W.................................................................... 155 Lawrence, Mass., Russian Store................................................... 233 Lawrence, Mass., Workers' Cooperative Union...................................... 233 League Endowment Fund .......................................................... 192 Lecture Courses. .............................-•..••••.•••••-••••-••••-•••••••••32, 71 Lecturing the West, by J. P. Warbasse.............................................. 47 Life Insurance ..................................•••••••••••..•••••••••••••••••••• 202 Llano Colony............".............................................--.. -49, 117, 149 Loan Sharks in Mexico............................................................ 75 Loyalty to Whom?.. .............................................................. 67 Long, Cedric, Editorials. .4, 7, 27, 28, 46, 65, 66, 67, 86, 87, 104, 144, 164, 187, 206, 224, 225 Luzzatti, Luigi. .............................••......••..•-•-.••••••.••••.-.•-••••_- 88 Lynn, Mass., Workingmen 's Cooperative Bakery...................................... 233 M Maiden, Mass., Progressive Workmen's Credit Union................................ 24 Marketing Associations Restrict Production, Do...................................... 67 Marketing Journal Started ........................................................ 58 Materialism Is a Virtue, When..................................................... 28 Maynard, Mass............................~•.........•.•••••••••••••••••••••-••61, 63 McCarthy, C.. .....................-.-...•--•.-••-•--•••••••'•••••••••••••••••••••• 226 Members Profiteering on Sales to Non-Members .............=........................ 56 Membership Problems. .......................................•••••-..•••••••••••••• 130 Mexican Gorsons ............................................-..•-•••••-.•••••••••• 75 Milkman, What Kind of a........................................................ 35 Miners, Cooperative Aid to.......................................................9, 129 Minot, N. Dak................................................................... 93 Molin, Rudolph. .................................................................. 51 Money's Worth, Your......................................................... .174, 237 N National Cooperative Manufacturers, Not Cooperative................................ 10 Nature of Cooperation (V. Totomianz).......................... 105, 147, 168, 188, 210 Ohio..................................................................... Neff, 92 Negro Cooperative Store........................................................... 211 New Era Life Association...................................................... 192, 202 Non-Profit Sales by Chain Stores.........:........................................ 167 Norman, E. A................................................................. 12, 222 Northern States League Year Book................................................ 216 Northern States League........................................77, 95, 114, 133, 166, 195 Norwegian Ethics................................................................. 84 Norwood, Mass., United Cooperative Society................................127, 162, 234 Nugent, Rolf. ........-................,.............."..................•.......... 34 Nurmi, H. V...................................................................36, 54 Oerne, Anders................................................................. 10, 115 One Hundred Per Cent Cooperation................................................ 171 Parker, Florence.................................................................. 135 Piney Fork, Ohio.................................................................. 197 Political Participation by Cooperatives......................................30, 127, 177 Private Business Lost $50,000, How................................................ g2 Producers Not Cooperative.....................................................104 205 Profiteering on Sales to Non-members.............................................. 56 Publicity and Advertising......................................................... 37 Purpose and Aims of Cooperation.................................................. 205 Quiucy, Mass., Cooperative Boarding House. ....................................... 233 Redferii, Percy. . ..................................................... 68 Reeves, Joseph................................................................. 35 68 Regli, Werner E................................................. jj jg Responsibilities of Directors............................................... 173 Restaurant, Cooperative....................................................... .153 192 Rose, William, Cooperative Pioneer............................................ 107 Rural Life at the Crossroads—Book Review......................................... 174 Russian Workers Cooperative, Brooklyn, N. Y....................................... 221 S Sales League................................................... jgg Sault Ste Marie, Midi....................................................... 9 jg Schools, Training. ...............................................36, 54, 55, 76, 89,' 126 Scientific Field of Cooperation............................................. 35 Servants. ........................................... .... gg Service, Not Profit............................................... 4 Seven Non-cooperators.............................................. 75 Share Capital. ....................................................... 77 Socialism and Cooperation.............................................. .. 147 Socialism, Psychology of...................................................... 176 Socialist Thought, History of—Book Review........................................ 155 Solvang, Cal.....................................................................1 2 Songs, Cooperative.................................................'''"'_[. '' " '7g' 197 Soo and New, A Comparison............................................ .. ....".. .' 9 11 INDEX PAOE Specter, George H.............................................................. 23, 50 Spencer, N. Y., Cooperative Society................................................ 282 • Stafford Springs, Conn.. ...................................................... .141, 142 Statistics, Cooperative......................................29, 53, 74, 151, 170, 189, 190 Stockholm Congress............................................................... 122 Store Bills Unpaid................................................................ 27 Stores, What's the Matter with Our................................................ 154 Stuart, J......................................................................... 56 Study of Consumers' Cooperatives in the TJ. S....................................... 135 Sweden, A Visitor from.......................................................... 51 Sweden, Consumers and Agricultural Societies in.................................. 52, 106 Sweden, Cooperation in............................................................ 123 Sweden, Scientific Research in...................................................... 65 Switzerland, Progress of Cooperation in............................................ 149 T Tanner, Vaino, Made Prime Minister................................................. 10 Taxation in England.............................................................. 87 Taxes Saved at Dillonvale, Ohio.................................................... 8 Tax Exemption, Campaign for.................................................... 230 Totem Pole Economics............................................................. 103 Totomianz, Prof. V........................................ .105, 147, 168, 177, 188, 210 Towns Have Grown Burdensome.................................................... 226 Trade Unionism, Value of........................................................ 86 Treasure Is, Where The........................................................... 45 Tre Kroner........................................................................ 123 U Ukrainian Cooperators Visit U. S. A...................... ^........................ 107 United Cooperative Society of Maynard............................................ 62 U. S. Cooperative Progress. ..................................................... 74, 135 United Workers Cooperative Asso.................................................. 152 Utica, N. Y., Cooperative Society............................................. .231, 238 Utopians Versus Militarists........... ............................................ 67 V Vanguard Press................................................................... 10 Villa Grove, 111.............................................................. . .130, 193 W Warbasse, J. P., Trip to Colleges.'...............................................32, 47 Warbasse, J. P.—Address to Nebraska Farmers' Union.............................. 206 Warbasse, J. P., Editorials........... .5, 45, 65, 85, 103, 125, 144, 146, 163, 186, 205, 223 War Resisters' League.............'............................................... 104 Warinner, A. W................................................................... 81 Warne, Colston E.. .........................................................35, 54, 57 Waukegan, Illinois, Cooperative Trading Co.......................................... 46 Wheat Industry Survey............................................................ 16 Wholesale Societies, Trade of...................................................... 29 Why the Store Bills Are Unpaid................................................... 27 Wildcat Cooperation and Workers' Capitalism. ..................................... 144 Winchenden, Mass., Italian Cooperative............................................. 97 Womens Cooperative Guild......................................................... 217 Woodland, Wash., Farmers Coop. Trading Co....................................... 92 Woolf, Leonard................................................................... 70 Workingmen 's Cooperative Mercantile Asso.......................................... 31 v. /« ^ - •B~ n* 7 \~3* GKIPERWMN A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in voluntary 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, December 19, 1917, at the Post Office at New York, N. Y., under the Act of March 3, 1879. Price $1.00 a year. VOL. XIII, No. 1 JANUARY, 1927 10 CENTS «, • . ••• m THE FEONT OF THE NEWEST AND BEST STORE in the little town of Solvang, Cali fornia. 102 co-operators in the town have united in a membership organization, without capital stoclc, to operate their own distributive "business without profit. They loan the store money and it is with this loan capital that the business is conducted. Mr. Alfred Jorgensen the Manager, is an old hand at the store game, but is more interested in co-operating with Ms neighbors than in maJcing oM the private profit he can out of them. And his fellow co-operators show that they appreciate this spirit by loyally baclffing him up. CO-OPERATION CO-OPERATION The Solvang Co-operative Store In the Santa Ynez Valley, north of Santa Barbara, California, is the town of Solvang, populated by several hundred Danish-Americans. The Danish part of the population knew the co-operative movement well, and decided in 1919 that it wanted to start a genuine co-operative store. Thirty-eight people got together, pledged $3,000 toward the necessary capital, decided that Mr. Alfred Jorgensen, who was already an experienced merchant, would make an excellent manager for them, and proceeded to get their new business incorporated. To-day there are 101 members, most of them Danes. But there are also Irish, Spaniards, Italians among the members, and they come not from Solvang alone but from all over the valley. There are two general stores in the town, one the co-operative and one a private business, and they are about equal in size and volume of business. Half of the business in the co-op is done with non- members. There are five employees, in addition to the manager, and two trucks are in use. There are about 200 people in the town of Solvang itself, but the post office reaches about 500 throughout the valley. Diversified farming is the chief occupation of the community, though the delightful climate has brought several retired Danish farmers. The store is handling general merchandise and dry goods. In fact, the manager claims that he handles more than 40 different kinds of merchandise under one roof. The business is operated entirely on borrowed capital. The members have the utmost confidence in the management and are therefore glad to deposit their funds in the store where they receive 7 per cent interest rather than in the bank which pays only 4 per cent. Thus the store now has an operating capital of about $25,000 provided by its members. These members are farmers, business men, and even bankers. The following table shows the development of the store over a period of seven years: Tear 1919. 1920. 1921. 1922. 1923. 1924. 1925. Sales $20,158 55,044 52,178 45,015 49,000 59,037 81,625 3>- % 8. 7.5 10.1 12.5 11.6 10. 11.1 Gross Profit 11. 15.5 13.2 15.5 14.5 14.8 16.8 Net Amount $594 3,644 1,084 947 1,388 2,903 3,683 Profits Per cent 3.4 6.5 2.2 2.1 2.8 5. 4.4 Trade Rebate 6.78 16. 5.2 3.95 5.35 8.8 8.55 A NOTEWORTHY SOCIETY PAPEK The Solvang Co-operative Society publishes a little paper called Our Messenger. It is a four-page monthly, but is not printed from type; it is mimeographed. Bach issue contains a picture. The society evidently has access to an artist who makes pictures at the editor's suggestion. For the pictures tell the story. This little sheet deserves attention. The best co-operative societies now make use of a publication for their members. Some have used The League's Home Co-operator or the Associated Magazine, and a few publish their own paper. The Solvang Society seems able to get out its own paper and to make a good job of it. This mimeographed periodical contains co-operative philosophy, advertisements for the store, news, poetry, humor, and propaganda. It is called "A Monthly Messenger for the People of the Santa Ynez Valley." •V, >. •a"' 4 *-£ %?- HEBE IS A COBNEB OF THE STOEE which leasts that it entries more than 40 different lines of merchandise: everything from groceries, tobacco and Icitchen wo/re to stationery, clocks, poultry feed, drugs and building materials. The inventory averages around $19,000. Everything in this paper is interesting. Anybody who starts to read it will read it through. That is the test of good journalism. It is well written, spicy, and homey. We recommend this little publication as a model for small co-opera tive societies. It is undoubtedly a power in building up the Solvang Society and in. increasing the business of the store. JUST A MINUTE, PLEASE We've often wondered hmv it must feel to stand before a microphone in a broad casting station, talking into the empty and unresponsive air, hearing not a word of applause, not a sound of any kind to indicate that the audience is out in front and\ interested. Hut we no longer wonder thus, since we began editing a, monthly paper. We burn the midnight Mazda, we roam through Roget, we dally with the dictionary, we flirt ivith fancy, vie rattle the Semington, we dig through dusty tomes, meditate over maga zines, stumble over statistics, all in the hope that somehow we may be able to pass along to you folks some thought that iviM be helpful or entertaining. But we can't help wishing that more of you would write us a letter once in a while, to let us knoiv you are out there on the air, and listening in. Nmv, there ate four hundred of you. We were going to say "four hundred readers," but hmu do we Icnow you are reading "Our Messenger" unless occasionally you drop us a lwie and tell us. Brickbats or bouquets, it matters not, so that you send them along, the only subscription price ive ask you to pay for "Our Messenger" is that yo-u sign the above attached postcard promptly filed out and mail it to its saying that you are getting it and finding it worth ivhile or not. Now for a flood of letters! A sample of the editorial carried on the front page of Our Messenger, monthly periodical of the Solvang Co-operative Store. Such a message as this is carried in many of the issues of this paper; then two pages or more are devoted to advertisements, and often an entire page to local news items and jokes. CO-OPERATION CO-OPERATION Vital Issues HAIL, 1927! It doesn't seem possible that we have traveled so far into the twentieth century. Ten years ago we were in the thick of the war which brought us this democracy that has culminated in Cal Coolidge. Twenty years ago a few of the foremost leaders of some of our best societies were in short trousers. Thirty years ago President McKinley and some of his best minds were picking a quarrel which later culminated in the Spanish War and Teddy Roosevelt's popularity. It is a long road back to those days which memory brings so near to us. Ten years ago The Co-operative League was in swaddling clothes, and although there were two or three local efforts to form federations of neighbor ing co-operative societies, the move toward a well integrated national move ment had barely begun. Two years later we found ourselves on the peak of the wave of what we supposed was co-opera tive prosperity. Three years more and we knew that this "wave of prosperity" was a mere bubble which had burst and let us down badly. Since 1922 we have been slowly re covering some of the ground lost. We have been more than recovering lost ground; we have been digging deeper and more substantial foundations. We have seen more co-operative societies in the United States than we have to-day, but never have we seen them so well united, such good educational work done, so many local publications, such strong district federations. 1927 must carry us onward to achieve ments even more solid. It must bring us more earnest workers who have dedicated their lives to the cause and who know what that cause is about. It must teach us to value deeds more than words, genuine education more than propa ganda, unity more than mere commercial success. C. L. FOR SERVICE, NOT PROFIT An organization of "liberals, pro gressives and radicals" which carries on propaganda in the American colleges, and which has as its aim to teach that the industrial affairs of the world can best be performed for "service and not profit,'' in its last news release says: • "There is only one practical way of managing public utilities in the public interest, and that is through public cor porations owned and controlled by the state"—and then adds the inconceivable quality of a state—"divorced from politics but representative of the in terests of both workers and consumers." The last conference of this organiza tion was devoted to the discussion of "New Tactics in the Social Conflict." The transactions are published in a volume by the Vanguard Press. Gov ernment ownership is held up as the solution of the economic problem. Not a word about Co-operation, until toward the end of the conference some embold ened soul asked one of the most erudite speakers what he thought of the Con sumers' Co-operative Movement. He said that he did not know enough about it to have an opinion, and the matter was closed. We often wonder why more educated, studious, and thoughtful reformers are not interested in co-operation. Why do they not even care to inform themselves upon the subject? Why are they dis posed to study every other sort of economic problem but this? There is such a thing as the Co-opera tive Movement. It is nationally organ ized in thirty-six countries. These thirty-six national organizations are federated into the International Co operative Alliance, which is composed of 85,000 societies with. 50,000,000 mem bers. All of this is a going movement. These people supply themselves with things for use. In some countries the business amounts to billions of dollars. Among the services which they perform are public utilities—housing, banking, telephones, insurance, transportation, parks, schools, theaters. One country alone has 274 co-operative electric supply associations which furnish the members with electricity for "service and not for profit." This ownership and administration by the consumers for service is going on and developing steadily and without re cession. Failures in these undertakings are uncommon, compared with the failures in profit business which sup plies the needs of most of the reformers who are not interested in co-operation. The dishonesty, bureaucracy, and ineffi ciency which exists in utilities conducted by political governments is incomparably greater than in co-operative societies. Why are not academic students of reform interested enough to want to know about this movement which never was a theory? Perhaps it is for just this reason: Co-operation is a fact. If one talks about it, he must have facts. If one would work for it, there are definite jobs to be done, and he must take hold of these jobs and work. Perhaps it is more satisfactory to deal with uncertainties. Talk is easier than work. To have in mind an utopian condition which the eyes shall never see, and to aspire to an ideal state of things which is beyond the possibilities of realization, give a sense of inward warmth and of high aspirations which dealing with tangible things does not easily supply. What are the 50,000,000 organized co- operators doing ? They have had to come to grips with facts—with things. They have goods on shelves. They are con cerned with wheels and grease. The cash register has to be punched. Columns of figures are to be added. Books must be balanced. Dirty places are to be cleaned. The interest on the mortgage has to be paid. Bricks must be bought. And then there are the troubles. Human beings have weaknesses in all callings. There is the dishonest manager who has to be tried and dismissed. Profit business conspires to destroy the society; to save itself it has to build a bakery. The housing society cannot get cement; it has to start a cement plant. Autocracy creeps into the management and control; it must be met. There is the fight between the members, with their theories of democracy, and the officials, with their hunger for autocracy. The milk bottle has to be set down every morning at the kitchen door of ten thousand homes. Co-operation is in action doing the thing. And what is being done is being done by the people who are doing it for themselves. And where people are doing things there are mistakes and bungling, uncertainties—and work, work, work. How much pleasanter it is to talk, to have high ideals for saving the rest of society, to vote at election in favor of having somebody else do good things for the people! And yet the usefulness of idealistic speculation is good—good at least for the speculators. And what is more, all useful social accomplishments are pre ceded by talk and dreams. This last statement is just put in to show our friendly feeling for the well-wishers of mankind. A FACT, NOT A THEORY There is to-day in New York, as these lines are being written, a meeting of representatives of the co-operative socie ties of the Eastern States. They are the executives of these societies. They are discussing joint buying. They have found that their total purchasing and consuming power is so great that they can pool their buying and together pur chase to better advantage than alone. Fourteen of these societies, for ex ample, have 85,000 members—that means families. Their members are supplied through their societies with 12,500,000 worth of goods a year. They use over 8,000 pounds of coffee a month. This is fifty tons of coffee a year. There are two societies that use 500 pounds a week. Bight of these societies use 2,500 barrels of flour a month. That means ten carloads of flour. They are beginning to buy together. But first they had to get acquainted and discuss their problems and develop con fidence in one another. They have been c CO-OPERATION CO-OPERATION buying together for a year or so. Now they are learning how to do it better. It means work and responsibility—this making contracts with flour mills and coffee importers. They have to risk the money of poor people. It is not a theory, but a fact. They succeed or they do not succeed. The responsibility is great. But they are learning. They began in a small way, and now they are approach ing big business. They make some mis takes. The important matter is that they are not afraid. They lay their hands to the job and give it their serious attention. This is taking place in thirty-six countries of the world. Already twenty of them have expanded their buying until they have federated to form national co-operative wholesale societies. In several countries these national co operative wholesale societies are the biggest business organizations in the country. In fifteen of them the whole sales have gone into manufacturing. In three countries these societies own the largest, flour mills in the land. And, finally, some of these unions of societies own thousands of acres of land which they use as the sources of raw material for their factories. This ownership in cludes, in one country, 35,000 acres of tea plantations; in another, 60,000 acres of farm land; in others, olive groves, vineyards, timber forests, mines, water power, etc. This has all been developed by people who first organized as consumers and who created or found executives and experts who could be delegated to per form expert functions for the demo cratically organized mass of people. Here is being slowly built, by pains and labor, a different kind of business. People are learning by doing. They are actually constructing here in the midst of our present day society the very utopia which dreamers love to talk about—a society in which "service and not profits" is the motive of industry. This fulfillment of the dream of an vitopian society can actually be seen. It can be touched and photographed. Its figures and facts are available and it needs workers. Perhaps this is the reason why it is not more popular. It is neither vague nor dreamy; it is terribly real. And then Co-operation is not dramatic. No sobs. No starving babies. No heroes languishing in foul prisons. No workers clubbed by brutal police. No dictator ship of the proletariat. No fiction. Just simple people with gumption enough and thrift enough to get together to do for themselves the things that profit busi ness or the political state would like to do for them—and to them. TALK AND WORK We have a number of Labor Colleges in the United States. What is the course most in demand in these colleges? Go to a labor college and see. Is it the his tory of Labor? No. Is it economics? No. Is it methods of labor organization ? No. The reader who is not familiar with labor colleges cannot guess so we shall tell him. The course that most students want the most of is the course in Rhetoric or Imblic Speaking or Oratory. People who want to train themselves for activity in the Labor Movement want Oratory most of anything else. This is also the case in the schools of political parties run in the interest of Labor. We have a number of co-operative schools in the United States. What is the course most in demand in these schools? The greatest demand from the greatest number of students is for Book keeping. It is the outstanding course by choice. The students want to learn how to carry on the affairs of economic life with accuracy and efficiency. And right here we come upon a fundamental difference in two institutions. Co-operation has always been doing things, it always has had to do things, and the most useful workers in the Co operative Movement are those who are trained to take the place of the workers in profit business and do the necessary things for the service of the people. Let us make 110 mistake. The capital ist system is doing the big job now. It is producing the necessities of life. It is carrying the food. It is making the wheels go round. It constitutes the fab ric that holds society together and makes life possible. Calling it names accom plishes little. Destroying it will accom plish less. It will melt away and give place to something better only when the people themselves learn—not talking— but learn how to do for themselves the useful things that capitalism now does. When they have learned how to keep accounts, and to administer businesses, bv actually doing these things, then there is hope that a system of service may be substituted for the profit system. The co-operators are training them selves to this end. They are learning, not by wishing, praying or talking, but bv putting into operation with their own hands the very Utopian system for which others hope and which they think to attain by some other means. J. P. W. WHEN IS A CO-OPEKATIVE CONGRESS NOT A CONGRESS In the wee small hours of the morning, when the first traces of light appear in the Eastern sky, Mr. Rooster climbs his dunghill, flaps his wings and crows and crows to the Morning Star. He is a valiant bird, bless his soul. Doesn't he wake the neighbors in all directions, set the dogs to barking, create a fine flurry of excitement among all the hens and chickens? Doesn't he dim the very Morning Star itself and finally fade it from sight ? It is the Rooster who thinks he brings the Red Dawn to gladden the hearts of men. These thoughts inevitably enter our heads when we think of some of the ses sions of that Fifth Co-operative Con gress. Resolutions, Oh, Resolutions, what things are committed in thy name! How we did talk and talk. How we did disagree about one another's opinions, try to put. each other to the test of rad ical or conservative orthodoxy. Sixteen resolutions were passed by the Congress, and we spent valuable hours in disagreement over two others which were finally withdrawn. About half of these were strictly co-operative in character and directed toward the practical exten sion of our movement. Among them were the resolutions creating a Com mittee on Co-operative Insurance, calling upon the societies to raise a budget of $4,500 during the current year, invoking a more universal celebration of Co-oper ators' Day and Week, asking co-opera tors to come to the aid of their fellow co-operators suffering from mining dis asters in Michigan, creating national committees on co-operative accounting and training and correspondence schools. Let us, for the sake of convenience, say that these resolutions are in Class 1. Then there is a second class of resolu tions which are semi-co-operative in character; that is, they are partly of a practical nature, partly theoretical ab stractions which should have little place in a co-operative assembly, for they con cern the opinions of individuals rather than the working program of a national co-operative movement. Among these are the resolution proclaiming the co operative movement a part of the general labor movement, one which demands that organized labor shall be employed in all construction work undertaken by co-operatives, one protesting against use of injunctions, and one calling for an open fight on inter national Fascism. And then there is the third class of resolution which is pure and unadulter ated oratory, which cannot possibly have any practical results nor elicit from our societies any constructive action in be half of the subject of the resolutions themselves, which could not convert a delegate present, for they all believed in these elemental principles anyway. We refer to those ringing proiiunciameiitos in behalf of Liberty, Equality, Frater nity, Freedom of Press, Speech and As sembly, or that furious denunciation of military training. Were we not revert ing a bit to childhood days, perhaps fooling ourselves as of old, with the belief that, if we shouted loudly enough and accompanied our shouts with gest ures sufficiently horrible, the auto crats, the labor baiters and the militarists would see and hear us and cringe with fear? We had three precious days at our disposal, and we shall not get another such three days until two years have elapsed. We had the choice of standing 011 soap-boxes and shouting at the ene mies of the co-operative movement, or of working fast and constructively to build a strong and permanent co-operative 8 CO-OPERATION CO-OPERATION 9 movement which might really have put some fear into our enemies' hearts. Un fortunately, we spent very many of those valuable hours calling names and making faces at the various individuals or classes throughout the world that we didn't like. However, reports from Great Britain seem to indicate that the Co-operative Congress in Belfast last summer went astray in just the same way. We in the United States who are yet such youths in the co-operative movement may per haps be forgiven for such antics when we see our respected grandmothers and grandfathers cutting the same foolish capers. Let us hope that the Sixth Con gress will find us grown two years nearer to maturity and good judgment. C. L. ERROR IN CONGRESS REPORT In the Report of the Fifth Congress carried in December CO-OPEEATION, state ment was made on page 230 that nomi nees for delegation to attend the Inter national Co-operative Congress included "Messrs. Tenhunen, Alanne and Nordby, of the Northern States League.'' The three nominated to represent the Northern States League were Messrs. Tenhunen, Bonn and Nordby. The error is due to the haste with which the report was prepared to meet the last minute demands of the printer. BIG SAVINGS OF TAXES AT DILLONVALE The New Co-operative Company of Dillonvale, Ohio, paid no Federal Income Taxes for the calendar years 1919 to 1923 inclusive, and had its returns for those years prepared by their local attorney. In the latter part of 1924, the New Co operative Company received various communications from Washington, in connection with their 1919 and 1920 in come tax returns. Apparently, these communications from Washington were turned over to the company's lawyer, and the manager, Joseph Blaha, assumed that he was taking care of their interests. Towards the end of the summer of 1925, the Dillonvale people were surprised by a notice and demand made by the Collec tor of Internal Eevenue for the payment of approximately $7,000.00 taxes for the years 1919 and 1920. The manager, Joe Blaha, knew that a genuine co-operative should not be as sessed any such amounts as the Depart ment was claiming, but the lawyer at Steubenville, who was engaged to handle the entire matter for the New Co-opera tive Company, knew nothing about co operatives, and therefore sadly mixed the whole affair. In October, 1925, Mr. Warinner-made a trip through Ohio for The League in the interest of our accounting bureau and found the New Co-operative Com pany struggling with their troubles. Mr. Warinner wrote to the national office, and the secretary immediately wrote the manager at Dillonvale offering assist ance, and when no immediate reply came, sent a telegram to the same effect. On the 27th of November, they replied both by letter and by wire that they wanted someone to come at once. The best combination of accountant, tax expert and co-operator known to The League is Jules Bnglander, who has handled the accounting work of Consum ers' Co-operative Services for more than five years. The accounting department of The League decided to ask Mr. Eng- lander to handle this case, and the latter took the train for Ohio on December 1st, spent many hours studying the books and records of the company, as well as inter viewing the lawyer at Steubenville, and returned with much of the necessary in formation. Subsequent trips to Cleve land and to Washington were necessary before the Department was induced to open up the case of 1919 and 1920 taxes which were already more than five years overdue and therefore legally beyond recall. It has been a long and hard fight since the first appeal was made late in 1925. and there is not space here for recital of all the exciting engagements and the minor battles won. The net result of the tax case involving the years 1919 and 1920, was a complete saving of the total proposed additional taxes of $7,390.00. During the course of our fight for the New Co-operative Company for the years 1919 and 1920, the Treasury Department at Washington notified Dillonvale of a proposed additional assessment for the year 1921 of $4,169.00, and subsequently, a proposed additional assessment for the year 1923 of $2,600.00. Petitions were filed, first for the year 1921, as a result of which the Treasury Department notified Dillonvale that no assessment would be made and withdrew their proposed claim for $4,169.00. A petition was similarly filed for the year 1923, which has not as yet been answered, but inasmuch as the principle involved was the same as in the prior years, it is almost certain that the pro posed claim for $2,600.00 will be with drawn. As a result of our work for the Dillon vale Co-operatives, the savings in taxes have been affected amounting in all to $14,159.00. Another incidental result of this campaign is the decision of the manager and directors of the New Co operative Company to install a complete new set of books to handle the large busi ness done by the four stores. This new system was installed during the summer and autumn of 1926 by Mr. Englander and Mr. Regli, and the first regular audit of the new books takes place in January. News and Comment CO-OPERATORS AID MICHIGAN MINERS When more than sixty miners were entombed in a disaster near Ishpeming, Michigan, last autumn, the Consumers' Co-operative Store lost many of its staunchest members and patrons; the Co-operative Boarding House of the same town lost its part time manager and 15 per cent of its boarders; and the Co operative Boarding House at North Lake, a few miles distant, lost its part time manager. As a result of a resolution passed at the Fifth Co-operative Congress, the Co-operative Central Exchange Whole sale for the district and the national office of The Co-operative League sent out to co-operatives throughout the country appeals for aid for the widows and orphans of the miner co-operators. Reports from Jalmar Nukala, Chairman of Relief, on December 18th, indicate that more than $1,000 has been already subscribed by co-operative societies. Of this amount, is from 19 co-operatives in Minnesota, Wisconsin and Michigan; $305 and a shipment of clothing is from 6 co-operatives in Greater New York; $245.60 is from 2 societies in Illinois; $25 and a shipment of clothing is from two other western societies; $50 is from miners' co-operative of Dillonvale, Ohio; $34.50 is from co-operators at Jessup, Georgia. SCO AND NEW: THEY'RE RUNNING NECK AND NECK The two largest store co-operatives in the United States are the New Co-opera tive Company, Dillonvale, Ohio, and the Soo Co-operative Mercantile Association of Sault Ste. Marie, Michigan. Recently the reports for the first six months' op erations for each of these societies came to the offices of The Co-operative League. The fight for first place between these two large institutions is a very close one, as the following figures show. New Soo Co-operative Co-operative Co. Mere. Co. Sales January-July, 1926 ............ $267,438.84 $267,060.59 Patronage rebates, 1925 ............ 7% 8% Capital Stock Jan., 1925 ............ 17,967.00 40,090.00 Loan Capital Jan., 1925 ........... 72,079.46 .......... Keserve Fund. ..... 85,281.46 28,362.21 Number of Mem bers ............ 448 490 The New Co-operative Company is composed chiefly of miners in the town of Dillonvale and a few adjoining mining camps. The Soo Co-operative Mercantile' Association is the largest single business in the city of Sault Ste. Marie and in cludes in its membership all classes and nationalities. The Dillonvale society is a full dues- paying member of The Co-operative League. The Soo Co-operative Mercan tile Association is not at present a mem ber but will probably be one in the near future. 10 CO-OPERATION CO-OPERATION 11 NON-PROFIT BOOK PUBLISHERS The entrance into the field of publica tion by the Vanguard Press marks an interesting and distinct step forward in the development of non-profit bookmak- ing. This organization is an. ordinary stock company, but all the stock is held by the American Fund for Public Serv ice, popularly known as the Garland Fund, an institution which has distrib uted hundreds of thousnads of dollars to labor, co-operatives and other liberal and radical organizations. The Van- guard Press prints or reprints the best of classical, liberal and radical literature and sells these books in cloth binding at fifty cents each. Those who become member subscribers receive the books at forty cents each. Twenty-seven different volumes are al ready on the market. The list contains such well known titles as "Looking Backward," by Bellamy; "The Theory of the Leisure Class," by Thorstein Veblen; "Progress and Poverty," by Henry George; and specially prepared compilations of the radical writings of Marx, Shaw, Wells, Tolstoi, etc. Hun dreds of other volumes will follow in the course of time. Forty-two new titles are already in preparation. Co-operators interested in this new departure in the non-profit publication and sale of radical literature can procure lists of the books already in print and particularly as to membership, by corre sponding with The Co-operative League. MORE HONORS FOR EUROPEAN CO-OPERATORS Whether men and women who are playing a leading part in the co-operative movement of Europe may want govern ment recognition or not, they cannot help but get it. The co-operative movement of these countries is too powerful a fac tor in the economic lives of the people to be ignored. CO-OPERATION reported several months ago the appointment of Mr. Anders Oerne, a leader of the Swedish co-opera tive movement and of Mrs. Emmy Freundlich, a leader of the Austrian movement and President of the Inter national Women's Committee of the co operative movement as members of the Preparatory Committee for the Inter national Economic Conference called by the League of Nations. Notice was also given of the appoint ment of Mr. Oerne to the position of Postmaster-General of Sweden, earlier in the year. The news now comes from Finland that Vaino Tanner, President of the ILK. (Union of Finnish Distributive So cieties) and also of the large Helsingfors Co-operative Society "Elanto" has just been made Prime Minister of Finland in the Socialist cabinet which came into power with the downfall of the Agrarian- Conservative Government late in Novem ber. Of course the Socialists hold only 60 of the 200 seats in Parliament, so there is by no means a working majority for the party and it may hold power even a shorter time than did the Labor Party of England. Mr. Tanner was in the United States last year, visited many of the Finnish co-operatives, and was a guest at The Co-operative League House. WATCH OUT FOR THIS SO-CALLED " CO-OPERATIVE " A member of The League has sent into the national office a folder entitled '' The Inside Story of the N.C.M.'' The N.C.M. is the National Co-operative Manufac turers, having its headquarters in Cin cinnati, and Harrison L. Forbes as it* president. The little pamphlet points out the remarkable success of the co operative movement in England and makes the pretension that the N.C.M. is co-operative in the same sense. The offi cers of The League can find nothing co operative about it so far as Rochdale principles are concerned. The organiza tion appears to be merely a selling agency privately organized. Those who honor the name of "co-operation" should not be fooled by the disguise which this Cincinnati institution wears. District Leagues MEETING OF THE EASTERN STATES LEAGUE DIRECTORS On December 12 the Board of Direc tors of the Eastern States League met in New York. All members of the board except Mr. Grandahl of Fitchburg were present and the invited guests included Miss Arnold, manager, Consumers Co operative Services; 0. E. Saari, manager, United Co-operative Society, Norwood; Alex Trutneff, secretary, Russian Workers Co-operative Stores; and sev eral members of the staff of The League. The larger part of the day was given to a discussion of Buying Committee prob lems. Mr. Aborn, one of the best known coffee experts in New York, was present to outline the entire situation as regards the raw coffee market and the roasting of coffee. Mr. Regli, who had been spend ing a considerable time studying the coffee situation, also made a report. The Buying Committee was authorized to proceed further with plans for the joint buying of coffee. Joint buying of flour is proceeding smoothly. The Brownsville Bakery during the past two months has received five carloads at a saving of approxi mately 20 cents per barrel. Maynard and Fitchburg have received several cars at a saving of from 15 to 40 cents per barrel. After considerable discussion a committee was urged to make a special study of the possibilities of buying un- branded flour on the basis of chemical and baking tests. If flour can be pur chased in this way a saving of between 75 cents and one dollar per barrel might be effected. This is the price people pay for the advertising of well known and highly advertised brands of flour. Other matters discussed under Buying Committee were: (1) Selection of an Eastern States co-operative brand or label to be used on all other commodities. A special committee composed of Miss Arnold, Mr. Norman and Mr. Wirkkula were authorized to wgrk out such a label. (2) A committee composed of mem bers of the Finnish Trading Association, Russian Workers Co-operative, and Con sumers Co-operative Services was ap pointed to go carefully into the question of a smoke house and curing plant to prepare cured meats for Eastern States co-operative meat stores. (3) Mr. Trutneff and Mr. Norman were made a committee to investigate the market of canned fish, dried mushrooms. and other commodities imported from Russia. (4) Mr. Norman and Mr. Wirkkula were made a committee to investigate the purchasing of paper bags in wholesale quantities direct from the manufacturers. In the afternoon, Mr. Englander, special accountant to The League, re ported in detail on the present income tax law and the possibilties of procuring a new ruling from Congress exempting consumers' co-operatives entirely from taxation. The meeting spent approxi mately two hours discussing this impor tant subject and finally passed a resolu tion urging the national office to proceed vigorously and promptly with action in this direction. The members present took up the question of mutual bonding of co-opera tive employees. The societies are now paying considerable amounts of money for the bonding of their managers, treas urers, etc. Much of this money could be saved by a mutual co-operative bond ing plan. The national office was urged to take such action as is necessary to promote this work. The committee on Eastern States Training School reported progress with its plans for a school to start in April and to continue six weeks under the direction of H. V. Nurmi, who will be- brought on from Wisconsin. The com mittee was authorized to proceed with immediate circulation of all Eastern societies soliciting support for the school. Delegates to the Fifth Congress at Minneapolis rendered a brief report of the Congress and its actions. In view of the fact that the national propaganda paper, The Home Co-opera tor, is being discontinued, the directors discussed the future of the Eastern Co- operator, which in the past has been run 12 CO-OPERATION CO-OPERATION 13 in conjunction with the national paper. The secretary was authorized to publish in smaller form an Eastern States paper in January and March and then present the entire subject to the annual conven tion in April. The secretary was also urged to try to effect some sort of a mutual working agreement with the pub lishers of the Northern States Co-opera tor which might save money for both leagues. Mr. Norman, treasurer of the New York State Association of Credit Unions, made a brief report regarding the Credit Union Association in the state and asked that the constitution of the Eastern States League be amended in such manner as to permit the affilia tion of either of individual credit unions or of federations of credit unions. The annual meeting of the Eastern States League was set for Sunday, April 3, and the national meeting of the full Board of Directors for Saturday, April 2d, both to take place at Fitch- burg, Mass. The Executive Committee of the board, composed of New York members, will hold its meeting in March. From The League Office CENTRAL STATES CO-OPERATIVE LEAGUE STATEMENT OF RECEIPTS AND EXPENDITURES FOR THE QUARTER ENDING OCTOBER 30, 1926 RECEIPTS Balance cash on hand at beginning of quarter......... $334.06 Dues received from affiliated societies............... 262.62 Dues received from individuals...................... 8.00 Joint buying commissions.......................... 35.09 Received for multigraph service from affiliated societies 111. 49 Received from sale of literature..................... 6.18 For services rendered Central States Co-op Wholesale Society ...................................... 150.00 For services rendered Consumers Mutual Aid Guild... 100.00 For services rendered to others..................... 29.69 Miscellaneous receipts ............................. 2.80 TOTAL RECEIPTS .............................. $1,039.93 DISBURSEMENTS Salaries ......................................... $600.00 Postage ......................................... 82.74 Freight, drayage and express....................... 5.46 Traveling expenses ............................... 71.50 Multigraph department supplies.................... 69.23 Dues to Co-operative League of the U. S. A........... 92.61 Books purchased ................................. 1.00 Repairs to office equipment......................... 1.27 TOTAL EXPENDITURES .......................... 923.81 BALANCE ON HAND ........................ $116.12 EXECUTIVE OF NATIONAL BOARD MEETS At the Fifth Congress in Minneapolis the Board of Directors of The League •elected an Executive Committee com posed of Easterners to act for it between meetings of the full Board. That Execu tive is composed of Dr. Warbasse, Chairman, Cedric Long, Secretary, Mary Arnold, Treasurer, W. Niemela and 0. Saari, Board members. On Monday, December 13th, the full Executive Committee met, and the fol lowing business took place. After approval of the minutes of the previous meeting, the discussion of finances for the current year took place. It was reported that of the |2,500 which must be raised this year over and above income from dues, $700 has already been pledged by action of three of the Eastern societies: United Workers Co-operative Association ($300), Consumers' Co-oper ative Services ($200), and Finnish Co operative Trading Association ($200). Additional sums ranging from $10 to $100 were apportioned out as the quotas of other Eastern societies so that the East would altogether raise between $1,000 and $1,200 of the $2,500. The Western societies would be expected to fill out the balance. A Finance Committee was also nom inated, such Committee to be composed of Directors Niemala, Arnold and Wirk- kula from the East, Directors Tenhunen and Nordby from the North Central States, and Director Liukku from Illi nois. When the full Board approves this action, the Finance Committee will func tion as the body immediately responsible for raising of the budget. The fight for adequate recognition of consumers' co-operatives by the-Federal Income Tax Department which Mr. Eng- lander (Consulting Accountant to The League) wants to make was discussed in some detail. The office was authorized to send out letters to all societies seeking signatures of local Boards of Directors to an appeal for such exemption from in come taxes for all Rochdale co-opera tives. At the instigation of the Educational Director of the Central States League the national office has been investigating the possibility of bonding the employees of co-operatives on a mutual basis. This might be done at a much lower cost than through the old-line bonding companies which are now getting this business. A motion was presented and passed calling upon the office to find out how many societies are now getting proper audits of their books, how many are bonding their employees and for what amount, and just what is involved by way of risk and protection in the average bond. At the recent meeting of the Executive Staff the changes proposed for the Con stitution of The League were considered, and opinion of the Directors sought as to whether they thought these changes should be presented to the next Co-oper ative Congress for adoption, or whether they should be voted upon by referen dum through the mails. The Executive Committee recommended that they be presented for a final vote at the next national Congress. The Secretary was authorized to pre pare a draft of abbreviated transactions of the Congress and to submit this draft to members of the Executive Committee for their approval or criticism after which they would be mimeographed. The Committee on Co-operative Insur ance appointed by the staff (composed of J. P. Warbasse, A. S. Goss, E. E. Branch, B. Fogelson, Professor Paul Douglas, Huston Thompson) was ap proved and authorized to proceed with its investigation, bringing back its find ings to the Executive. Several other matters were considered briefly. Before the Executive can ap prove the new Constitution of the North ern States League copies of the same are to be sent out to each of the Directors. A conference of Ohio Societies is being tentatively planned for early Spring at which consideration of uniting with Central States League will be asked of the delegates present. Plans for na tional Correspondence School are pro- 14 CO-OPERATION CO-OPERATION 15 ceeding, and Director Colston Warne of the national Board has volunteered to give some of his time to investigation of the entire subject and to assist in preparation of some of the elementary courses which are to be put out first. In view of the decision of the Staff to dis continue publication of the Home Co- operator, the Eastern States League was advised to take over temporarily all orders for Associate Magazine, and at the same time try to effect a working agree ment with the Northern States League which would enable the papers of both leagues to be edited and published more economically. The Secretary of the East ern League also made a report on prog ress of plans for the Eastern Training School to be held in Brooklyn during April and May. The Committee will meet again at the call of the office. 3. 6. Secretary's Report OF THE Activities of the Co-operative League FOR 1925 AND 1926 1. During 1925 and 1926 The League has sent out 30,450 pieces of literature and 986 books. 2. Published two monthly periodicals averaging 6,000 copies per month. Issued a monthly practical bulletin to affiliated societies, some of the sub jects being: "How to Make Out That Income Tax Eeport" "Planning Those Summer Meetings" "What Do You Mean: 'Turnover'?" "Installment Buying Versus the Grocers' Bill" '' Do You Know How Much Your Delivery Service Costs You ?'' "Heating and Lighting the Store" "Buying on Futures Versus Quick Stock Turn" "Stabilizing the Trade of Your Customers" Sent out a News Service to 275 papers of the labor and farmer press. Eeceived and answered 2,745 letters asking for advice and information; and sent out 14,684 circular letters on routine work of the co-operative- movement and special letters to individuals. Sent speakers to 100 meetings, including one extended trip from coast to coast. 7. Conducted audits (annual, semi-annual, quarterly or monthly) for 16 co-operative societies and three labor unions in the eastern part of the country; also did special research accounting work for one society, and conducted protracted fight with the Federal Tax Department in behalf of a large society wrongly taxed on income. 8. Conducted an employment bureau which supplied managers and other workers for co-operative societies. 9. Was represented by a member of the Board of Directors at the meeting of the Central Committee of the International Co-operative Alliance in October, 1926, and another member of the Executive Staff spent the summer visiting the co-operative movement of ten European countries, also attending the International Co-operative Summer School at Manchester. ] 0. Interviewed at the offices of the League 618 visitors from the Fnited States and from ten foreign countries. 11. Published reprints of several leaflets and the following new pamphlets: "Progress of Co-operation in the United States" "Co-operative Consumers' Movement in the United States" "Consumers' Co-operative Movement in Europe" 12. Got into press the revised edition of Dr. Warbasse's "Co-operative Democ racy" in December, 1926. 13. Supplied field workers and office assistance to the Eastern States Co-opera tive League at cost. 14. Gave written advice on problems of store management, organization and administration; sent out technical advisors. 15. Gave legal advice to "0-operative societies on incorporation, charters, tax ation and litigation. 16. Investigated fake or unsound co-operativt, enterprises and sent out warn ings to co-operators. 17. Conducted the Fifth Co-operative Congress at Minneapolis, at which 90 regular or alternate delegates and many fraternal delegates and visitors were in attendance. Approximately 132 societies were represented by 65 delegates and 25 alternates. The following comments may be of interest to members and friends of The League: On the 1st of October, 1926, there were in all 309 societies holding member ship in The League, 143 of these being fully paid up as to dues. Of this 143, 104 hold direct membership in the three active district leagues, and are therefore indirect members of the national League. At the time of the Fourth Congress in 1924 there were only 116 societies fully paid up, 58 of which were members of district leagues. There are 412 individual memberships in The League, 253 of which are paid up to date. Subscriptions to magazine CO-OPEEATION numbered 1,349 (as .compared with 1,481 in 1925), and of these 1,171 (as compared with 1,074 in 1925) were paid up to date. The newly developed Accounting Bureau of The League has made more rapid progress than was anticipated when it began business one year ago. Whereas it was expected that this Bureau would pay for only half of its own upkeep the first year, it actually came out at the end of the year with a deficit of only about $1,000 (which was covered by the American Fund for Public Service). The most remarkable development to be noted in our movement during the past two years is the growth of the district leagues of the national League. The three district organizations in the North Central States, the Central States and the Eastern States are all making substantial headway. The first now boasts a membership of 83 societies (11 of which are fraternal memberships). The Central States League has a membership of 9 societies and the Eastern States League 11. Some decrease in the full direct memberships in the national League, as well as in the individual memberships, in the income from membership dues, and in the circulation of the propaganda paper HOME CO-OPEEATOE is the inevitable result of this expansion of the district leagues. The national office receives 10 cents per capita dues from societies holding direct membership, but only 5 cents per capita from societies belonging to district 'leagues. As the district organizations increase in strength they naturally take over many of the societies that formerly held direct membership in the national organization. In the -•:ame way, the local publicity organs and propaganda papers of the district leagues take away support from the national paper. This increase of district strength is much to be desired, and the national office is more than glad to lose some of its support to the district leagues, for the latter are destined to play a more immediate and important role in the life of local co-operatives. 16 CO-OPERATION CO-OPERATION 17 (4' \1 »„ A Short Survey of the Wheat Industry (Continued from December Number') II FLOUR The term flour, derived from the French fleur—flower, i.e., the best part— is usually applied to the triturated fari- nacious constituents of the wheat berry. Wheat Qtiality. — The commercial wheat of the United States has been divided into five major classes: 1. Hard red spring wheat; 2. Durum wheat; 3. Hard red winter wheat; 4. Soft red winter wheat; 5. White wheat. The hard red spring wheat is grown largely in the northern portion of the Hard Eed Weight, per bushel (Ibs.). Yield of flour, per cent... Loaf, volume ........... 2421 Water absorption, per cent Color score ............. Texture score .......... Crude protein (N x 5.7) : In wheat, per cent... In flour, per cent.... Spring 60.5 70.2 2421 55.7 96.4 94.8 Durum 62.8 70.3 2070 55.7 90.2 90.7 great plains area in Minnesota, North Dakota, South Dakota and Montana. Durum wheat is mostly grown in southeastern North Dakota, northeast ern South Dakota, and adjacent counties, in Minnesota. Hard red winter wheats are grown in the southern portion of the great plains area, in adjacent regions to the eastward, and in the intermountain and the Pacific slope regions. Soft red winter wheats are grown in Missouri and the states to the eastward. White wheat varieties are grown principally in Mich igan and New York. The comparative milling and baking qualities and the protein content of these five classes are summarized as follows: Hard Eed Soft Eed White Winter 62.1 72.0 2219 55.2 95.3 Winter Wheat 61. 69. 1965 52. 96, 1907 51.7 12.9 11.9 14.3 93.5 12.1 11.2 91.9 10.6 9.6 From these facts it appears that while durum wheat averaged highest in test weight per bushel, it did not mill as freely as the hard red winter wheat, which gave the highest average yield of flour. The average loaf volume was smaller and the texture score lower than the average hard red spring wheat flour. In addition, the average color score of the durum wheat flour was the lowest reported, due to its yellow hue. Hard red spring wheat flour averaged highest in loaf volume and texture score, the commonly accepted criteria of baking strength. Durum wheat is not commonly used in the manufacture of flour for bread making. Flour Properties.—"It is in August of each year that millers and bakers are busily engaged in learning all they, can about the baking and other properties of the new wheat crop. The miller naturally has the first opportunity to examine the wheat, for he must know the properties of the wheat obtained from each district so that he can make the right kind of blend which will pro duce the type of flour required by the baker. '' While the miller, through his years of experience, is able to select and properly blend wheat and produce the best type of flour from the wheat on hand, the flour may vary enough to give the baker some trouble when he first begins to use it. '' A difference in character of the gluten and in the acidity of the flour may be cited as an example. If the gluten is more extensible and the acidity is higher, the flour will naturally take on more water. The baker may have been using an old flour that had an absorp tion of 60 per cent, and in purchasing new flour obtains a lot that will have an absorption of 63 per cent. This differ ence is sufficient to cause the dough to bind if he does not use an increased quantity of water, and the result in most eases will be a bound loaf. He will also lose considerable weight because this particular type of flour will hold the water during baking a little more firmly and produce greater yield. On the other hand, the flour may show an exception ally high absorption at the beginning and release some of the water, due to a gluten that is weak in structure. In such a case it would not be advisable to add more water although the dough may show every indication of requiring more when it is being made. "The color of the flour may be such that it may affect the color of the crumb. This may make it necessary for the baker" to demand a flour that is slightly more natural. Thus we find variations in the properties of flour from year to year, and it is well to know of these in order to secure the best results.'' * The following are typical exhibits. The first is a table of the average com position of wheat; the second is a tech nical analysis of flour: 1. Moisture... ........... 13.5 % Starch. . . ............. 67.9 % Protein. . . ............ 12.5 % Cellulose (fiber) ....... 2.6 % Mineral Salts (ash)..... 1.8 % 2. Ash... ................ .39 % Moisture. ............. 11.16 % Acidity. .............. .81 % Absorption. ........... 60. % Gluten, wet ............ 31.6 % Gluten, dry ............ 10.664% The technical analysis of flour, along with its color, should always be kept in mind, but it must be remembered that the chemical test is only an indication of its baking quality, and that it must be substantiated by the baking test. Baking Test.—The baking test is the one test which of itself has real merit. Although the chemical analysis gives a valuable index as to quality when more than one determination is considered, the baking test combines in a measure a series of tests. For instance, the chem ical test will give the ash determination which indicates the grade of flour, but, like any other single determination, it does not differentiate sufficiently be tween good and poor flour; but this ash test, along with the acidity, color, ex pansion, gluten, and other chemical tests, sufficiently characterizes it. The color, absorption, quality of the gluten, expansion, and other characteristics have their influence on the loaf so that a baking test quite generally substan tiates the results of the chemical analy sis. Grades.—It might be well at this point to give a short analysis of three of the best known grades of flour. The "patent" flours, chiefly made from the more central parts of the endo sperm, are low in gluten and ash, but they possess the best color. The '' clear'' flours, on the other hand, are highest in gluten and ash, but, since they contain more particles of bran, their color will be darker. "Low grade" flours, which do not come into consideration for bread making, are darkest of all. The "straight" flours stand, as; it were, between the "patents" and the "clears"; that is, they are higher in gluten and ash than the patents, but lower than the clears; this is true also of their color. But even between different flours rep resenting the same grade—for example, between a number of patent flours— characteristic differences are to be ob served, although these flours might have been milled from the same grade of wheat in so far as the percentage of endosperm particles is concerned. This percentage of endosperm particles in cluded in the respective flours will influ ence the percentage of gluten and ash as well as the color. Blending.—Differences with reference to the properties of the flours must be observed, especially with gluten and color. Because of these differences, the best grades of flour are obtained by em ploying a mixture of different varieties, blended in such a way that the excess of a certain characteristic in one will make up for the deficiency of the same char acteristic in the other. For instance, the excess of the gluten in the one will make up for the deficiency of this sub- 18 CO-OPERATION CO-OPERATION 19 •stance in the other, while possibly the better color of the second wheat will im prove the somewhat poorer color of the Tfirst. Branded Flour.—In interviews and in texts, the statement that only certain brands of flour can be used to produce the best results is refuted. This idea seems to be more of a psychological problem than an actual one, because, •since baking can be done in a scientific way, almost any flour can be used satis factorily if its chemical analysis and baking test are understood. All branded flours are extensively ad vertised and the advertising expense is naturally defrayed by the baker. It would cut the cost of flour considerably if unbranded flours with the same prop erties and baking capacity of the various branded flours commonly used could be obtained. This is being done by bakers who have combined with the purpose of buying on a large scale. Their method of buying is as follows: The formulae and the baking characteristics are sent to the miller and the order placed sub ject to the chemical and baking tests. These buying combinations maintain their own laboratories, but there are commercial institutions that test flour, •such as the Howard Wheat Testing Co. of Minnesota or the Siebel Institute of Technology of Chicago. The Siebel Institute was requested to furnish information about the type of service it renders. The following is an extract from their letter: '' The plan which you have in mind is indeed quite feasible and in fact is quite in accord with that pursued by the Pur chasing Departments of many of the large baking organizations. "The first step needed would be towards establishing a standard for the different grades of flour that would meet the requirements and the viewpoints of the baking plants interested in your League. To this end it would be neces sary for you to send us samples of the types of flours which are now being pre ferred. We would then make analysis of them and from such analysis create a standard. '' Once such standard is created, speci fications will then be made to conform with the standard and it is with such specifications as a basis that the pur chase of flour can be made. '' This would then be followed by sub mitting samples for analysis so that your League, and its respective members, may be advised how the flour received con forms with the requirements of the specifications, "Our fee for the preliminary work necessary in creating this standard and specifications would be $100.00 and analysis of samples of flour subsequently submitted would be made at the special rate of $5.00 per sample. "Assuring you that we shall be pleased to co-operate with you in every way possible in carrying out your plan, which is quite in conformity with the practices that we have recommended and which, aside from assuring your customer the purchase of flour on a most econom ical basis, reduces to a minimum the many irregularities which the average plant meets with and which in most in stances are directly attributable to the variances in the character and composi tion of the flour which they employ.'' Without doubt, the flour industry is a very complex one, because of its wide geographical distribution, the weather hazards, the labor turnover in the farm ing, the many types of machinery re quired in its manufacture a.nd the knowledge of blending. Even after these difficulties are taken into consideration, the final output of the mill depends upon technical and scientific knowledge of the experts employed and their experience in the blending of flour. WBBNEE E. EEGLI, Co-operative League Accountant. BIBLIOGRAPHY Geography of the World's Agriculture. V. C. Pinch and O. E. Baker Encyclopaedia Britannica (llth Edition) The Chemistry of Wheat Flour. C. H. Baily Reports of the Federal Trade Commission Agricultural Year Book, 1925 * Bakers' Weekly Journal Manual for Millers and Bakers of the Siebel Institute Various textbooks at the New York Public Library Personal interviews with Albert Klopfer, Editor of the Bakers' Weekly Charles A. Glabau, Director of the laboratory of the Bakers' Weekly. The Co-optimist CO-OPERATE Ay tink Ay vill co-operate Und help my neighbor out. Ay can't get anyvere alone; Dat's so vidout a doubt. He needs my help, Ay need his too, Ve pull yust like a team Ven he kvits quarreling vid me And Ay kvits fighting heem. Ve neighbors act yust like big fools Ven ve each odder fight And say each udder von is wrong Ven neider von is right. (Alson Secor, in Montreal Witness.) "The Co-operative Pyramid Builder" Official Organ of Co-operative Central Exchange is a snappy, live co-operative magazine. Get in line! Subscribe NOW Subscription price 50c a year. CO-OPERATIVE CENTRAL-EXCHANGE Superior, Wis. M. T: Dome: "It's my cream I'm selling, isn't it? And it's my money I'm spending at Soaker's store. Leave me alone. This is a free country and I do business where I like. THAT'S FINAL." Fuller Brains: "So was the foreclosure on your old man's farm. So was your mother's funeral when she died at 45 from doing the work of two mules. They both shouted for Freedom—freedom to compete with their neighbors for the privilege of starving them selves so the local buyers and merchants could grow rich. Get wise, Old Dome, get wise. If we co-operate, we keep these profits where they belong—with the farmer." The Canadian Co-operator Brantford, Ontario, Canada The organ of the Canadian Co-o»era- tive Movement, owned by and con ducted under the auspices of The Co-operative Union of Canada. Published monthly 75c per annum CO-OPERATION, 167 West 12th Street, New York. Please send CO-OPERATION for one year to Name. . . . ................................ Address.............................. $1.00 a year. 20 CO-OPERATION PUBLICATIONS — OF— THE CO-OPERATIVE LEAGUE HISTORICAL Per Copy Per 100 3. Story of Co-operation .............$ .10 $6.00 7. British Co-operative Movement..... .10 6.00 38. Consumers' Co-operative Movement in U. S., 1926................. .10 6.00 39. Consumers' Co-operative Societies in N. Y. State (Published by Con sumers1 League ................ .10 59. Co-operative Movement in Europe.. .05 4.00 64. Progress of Co-operation in United States. ..................... .05 4.00 TECHNICAL 4. How to Start and Run a Rochdale Co-operative Society ............ .10 4.00 5. System of Store Records and Accounts................... .50 6. A Model Constitution and By-Laws for a Co-operative Society....... .05 2.50 8. Co-operative Education. Duties of Educational Committee Denned... .10 9. How to Start a Co-operative Whole sale ........................ .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-opera tive League ................... .10 29. Credit Union Primer (By Ham and Robinson). .................. .50 43. Co-operative Housing ............. .10 50. A B C of Co-operative Housing.... .10 51. Model Lease for Co-operative Apart ment House ................... .10 MISCELLANEOUS 16. Model Co-op State Law............ .10 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 1.7S 33. Credit Union and Co-operative Bank .05 13. The Place of Co-operation Among Other Movements .............. .25 34. Co-operative Movement (Yiddish).. .02 1.25 30. "When the Whistle Blew" (Story, by Bruce Calvert).............. .06 65. Reading List on Co-operation....... .10 66. International Directory of Co-opera tive Organizations .............. .35 41. Social Aspects of Farmers' Co-opera tive Marketing (By Benson Y. Landis). .................... .25 42. Co-op Homes for Europe's Homeless .10 53. Real First Aid for the Farmers.... .05 55. A Better World to Live In........ .05 57. How a Consumers' Co-operative Dif fers from Ordinary Business. .... .02 .60 60. The " Moral Equivalent " of lazz... .02 62. Buttons (League Emblem in 3 colors) 54 inch diameter........ 3.00 63. Sign or Transparency of League Em blem. Green and gold, Sin. diam.. .25 15.00 ONE-PAGE LEAFLETS (One Cent each; 50 Cents per 100; $2.50 per 500; $4.00 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 1; (28) Do You Know About Co-operation in Europe?; (40) Have You a Committee on Education and Recreation?; (44) What Is the Co-operative Move ment?; (45) Schools and Stores; (47) A Man's Right to a Job; (48) Tips to Co-operators; (49) The Way Out; (61) Co-operation Brings Disarmament. MONTHLY PUBLICATIONS CO-OPERATION—(In bundle lots, $7.50 per hun dred). Subscription, per year.......... ....$1.00' HOME CO-OPERATOR, 4 pages...... .$1.00 per 100 INTERNATIONAL CO-OPERATIVE BULLETIN, (Pub. by The I. C. A.)..........Per Year, $1.50 $1.65 if paid by check. BOOKS The following books are recommended as containing the best discussions of the modern Co-operative Move ment. They may be ordered through The League: Bergengren, Roy F.: Co-operative Banking, A Credit Union Book ..................... $3.00' Blanc, Elsie T.: Co-operative Movement in Russia . . . . . . . ....................... 2.50 Brightwill, L. R.: Animal " Co-op " Book—For Children............................ .15 Faber, Harald: Co-operation in Danish Agricul ture, 1918 ............................. 2.7S 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 American edition and notes, 1922. Cloth, $2.00: paper bound ..................... .90 Hall, Prof. Fred: Handbook for Members of Co operative Committees ................... 2.00 Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Paper bound........ .60 Holyoake: Rochdale Pioneers ................ 1.00 Howe, Fred C.: Denmark, a Co-operative Com monwealth, 1921 ....................... 2.00 Jessness, O. B.: Co-operative Marketing of Farm Products ......................... 2.50 Madams, J. P.: The Story Retold............. .50 Mears and Tobriner: Principles and Practices of Co-operative Marketing................ 3.20 Nicholson, Isa: Our Story................... .25 Oerne: Co-operative Ideals and Problems...... 1.25 Owen, Robert: Autobiography .............. .50 Potter, B.: Co-operative Movement in Great Britain.............................. 1.00 Redfern, Percy: The Story of the C. W. S..... 2.00 Redfern, Percy: The Consumers' Place in So ciety, 1920 ............................. 1.00 Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918 ........................ 1.00 Smith-Gordon and O'Brien: Co-operation in Denmark. . . . . . . .................... 1.00 Smith-Gordon and O'Brien: Co-operation in Many Lands, 1920 ..................... 1.50 Stolinsky, A.: The Co-operative Movement. (In Yiddish). ............................ 1.00 Warba'sse, J. P.: Co-operative Democracy, 1926. 1.50 Webb, B. and S.: The Consumers' Co-operative Movement, 1921. Board, $2.00; cloth..... 5.00 Webb, Catherine: Industrial Co-operation, 1917. 1.50 Woolf, Leonard: Co-operation and the Future of Industry. . . . . . . ..................... 1.00 Woolf, L.: Socialism and Co-operation........ 1.50 Co-operation in Great Britain and Ireland, paper .25 CO-OPERATION, Bound Volumes, 1915 to 1925 inclusive, each ......................... 1.25 Transactions of Second American Co-operative Congress, 1920 ......................... 1.00 Transactions of Third American Co-operative Congress, 1922 ......................... 1.00 Transactions of Fourth American Co-operative Congress, 1924 ......................... 1.00 Northern States Year Book, 1926. Paper..... .25 The People's Year Book, 1926. Cloth, $1.00; paper bound ........................... .60 (.Ten cents postage should be added for all books.) (MIRATION A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in voluntary 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, December 19, 1917, at the Post Office at New York, ff. Y., under the Act of March 3, 1879. Price $1.00 a year. VOL. XIII, No. 2 FEBRUARY, 1927 . 10 CENTS 1 '•' ,A DIRECTOR'S OF PROGRESSIVE WORKMEN'S CREDIT UNION. They were elected, at the annual meeting on November 16: Samuel Bander, Samuel Bivetsky, Joseph Cardinal, Samuel Cassin, Max Cohn, Charles Gale, Myer Gelpe, Abraham Grossman, Philip Isenman, Rolei-t Katz, TJiomas Klaiman, Harry Lilly, Benjamin Miller, Jacob Mover, Nathan Rodmam, Abraham Ross, Louis Segal, George Wenrich. A rather large Board! And' a very effective one. 22 CO-OPERATION CO-OPERATION Credit Unions That Are Go-operative Do credit unions have a legitimate place in the family of the Consumers' Co-operative Movement? Is the credit union movement in the United States destined in the far future to play the part of friend and ally to the consumers' co-operative stores, bakeries and restaurants; or is it going to remain indifferent to the fate of the distributive societies, perhaps even hostile to them? That is a question which will be given more and more consideration as the work of the National Credit Union Extension Bureau expands into the few corners of the country it has not yet invaded. And in that discussion we cannot do better than look back at the experience of Germany, and prepare our own program in the light of the experience of co-operators of that country. The General Union of Co-operative Societies of Germany was composed of credit, productive, purchasing and distributive societies, but the credit societies predominated. Because most of the credit societies (as well as many of the productive or purchasing societies) were made up chiefly of petty merchants and others closely aligned with and benefiting from the profit system, the General Union never welcomed into its membership with any high enthusiasm the pure consumers' societies whose membership was chiefly workers and which were com mitted to the program of changing the entire social structure. In fact, with each new entry into the General Union of these "radical" co-operatives, the leaders of the General Union became increasingly nervous and ill at ease; until finally, after minor quarrels, then major quarrels and final open dissension, 100 of the young upstart societies were bodily thrown out of the Union. Then and there began the organization of the Central Union of German Distributive Societies which to-day counts in its.membership almost all of the consumers' societies and many of the credit societies as well. What has all this to do with credit unions in Ainerica? Simply this; that here, too, we have credit unions and credit unions. All of them are strictly eo-operative in structure, and on that score co-operators of even the most par ticular tastes cannot quarrel with them. But, unfortunately, in large numbers of onr credit unions there is discern ible the same trend that appeared in the early co-operative banks of Germany. In fact, we may go one step further and say there are three general purposes for which credit unions are organized in the twenty-four states where permissive legislation is now on the statute books. First, there are credit unions whose chief object seems to be to provide credit for petty merchants. Examples—"The Real Estate Owners Credit Union of New York," "The Riverside Businessmen's Credit Union of New York City," "The Grocers' Credit Union," "The Keystone Merchants' Credit Union," "The West Side Tailors' Credit Union." Second, there are credit unions whose purpose is identical with that of the company labor union, the company insurance fund, and the company recreation park association, all of which are now so popular with large industrial corpora tions operating on an open shop basis. Membership in these credit unions is in most cases strictly limited to employees of the particular concern in question, and policies are closely supervised by the management of the corporations. In a few states. New Jersey for example, this is the only type of credit union that may be organized under the law. Third, there is the credit union organized among workers or farmers pri marily for the purpose of meeting their credit needs as individuals or house holders, and controlled directly by these same shareholders, borrowers and depositors. GEORGE SPECTOR, President of the Headgear Workers Credit Union, has held various offices in the International Union of the Cloth Hat, Cap and Millinery Workers, lut during the first two years as President of the credit institution was a mere wage worker in the shops of his trade. A year ago he was appointed full-time manager of the Credit Union and the spurt ill membership, business and new activities in 1936 is evidence of his filiility and energy. It is not. the purpose of this article to discuss at length the question of the relative value of these three kinds of credit institutions to the Consumers' Co operative Movement. We must all admit that all three types are co-operative in form and structure. We may even admit that all three are doubtless of imme diate material benefit to their shareholder depositors and borrowers. Yet, it is an undisputed fact that the same tendencies appear in the Amer ican credit union movement as appeared in the early days of the General Union of Germany. The Co-operative League has circularized the credit unions of several states on a few occasions, and there is little doubt that very many of them know what the League is and what it stands for. What have been the results of this circularization ? Less than 5 per cent of the letters or questionnaires have ever been answered or given other recognition. Hardly half of these few have shown any interest in allying themselves in any way with the League and the consumers' societies affiliated with it. This means that of the credit unions reached by the League less than a dozen publicly proclaim that they have any kinship with the wider co-operative movement whose purpose it is to substitute for the profit system a .system of production, distribution and credit for service. There is not space here for the story of these few unions which take their stand with the larger Co-operative Movement. Several of them are still very small, still struggling with the problems and ills of early infancy or adolescence. We select three of the stronger and better established credit unions in the East and present briefly their story here. They are organizations which are on the side of the co-operative stores, bakeries, restaurants, dairies, coal companies in the efforts the latter are making to build in the United States a unified, cohesive Co-operative Movement which may gradually supplant our present system of Imsiness for private profit. THE WORKERS' CREDIT UNION, FITCHBURG, MASS. This institution was first organized in 1914 and during its early years met with the customary hardships, demanded the usual sacrifices from its officers, and made the mistakes which can be expected of most credit unions in their early youth. By the time the late war days came along the organization was soundly established and growing rapidly. But after the war, when a political division took place among the members, the Credit Union suffered seriously and it was two or three years before the lost business was made up. 24 CO-OPERATION CO-OPERATION 25 To-day there are 1455 shareholders, most of them living in Fitchburg, but many scattered throughout other towns in Massachusetts or elsewhere in New England, and several in New York. The predominating nationality is Finnish. For years the institution has worked very closely in harmony with the United Co-operative Society, a consumers' distributive bakery and store organization. The following figures show the condition at the close of September, 1926 : Loans outstanding .......... .$562,038.38 Other assets ................ 68,056.94 Shares ..................... $179,650.00 Deposits ................... 391,858.36 Guarantee fund ............. 37,598.68 Profit and loss.............. 18,705.98 Undivided earnings ......... 2,282.30 Total assets $630,095.32 Total liabilities ......... $630,095.32 The receipts for the year from all sources were $511,145, nearly half of which were in the form of deposits. Other large receipt items were $37,563 in shares, $150,726 in loans repaid, and $35,631 as interest on loans. The largest disburse ments were $200,157 of deposits withdrawn and $197,305 loaned out. Distribution of earnings were as follows for the past 2 years: 1925 1926 Earnings ................................... $12..450.67 §16,080.50 Five per cent dividend on shares.............. 8,184.96 '8,200.00 Net earnings ............. Transfer to guaranty fund. Undistributed profits ...... Undistributed profits, 1S25. Balance previous to 1925... $4,265.71- 2,490.13 $1,775.58 $7,880.50 3,593.92 $4,286.58 1.775.58 506.72 Total undistributed profits. Guaranty fund ........... Profit and loss............ Total reserves in various accounts. 37,598.68 6,219.40 $50,386.96 It is noticeable that these co-operators, though they might pay 6 per cent or 8 per cent on shares are content to pay 5 per cent and put the remainder into the indivisible surplus. These folks believe in creating a fund of wealth owned in common rather than in paying big dividends to individuals according to the custom of capitalist bankers. The President of the Union is Yrjo Makela, and the Treasurer John Suominen. PROGRESSIVE WORKMEN'S CREDIT UNION, MALDEN, MASS. Older than the Workers' is the Progressive Workmen's Credit Union of Maiden, with a membership of more than 2300, and borrowing members num bering more than 1100. This institution was organized in 1911 with 43 members, two years after the Credit Union Law was enacted in Massachusetts. Progress since that date has been even and continuous, as the following shows: Year 1913. 1916.. 1921.. 1926.. Total business $10,749 71.923 271,002 883.226 Total assets $6.922 32,043 117,543 407,939 The credit union has done over $4,000,000 of business since organization. Dur ing the past four years 6 per cent interest has been paid all depositors. Of the assets of more than $400,000 at the close of the last fiscal year $345,000 are outstanding loans. Of the liabilities, $301,650 are share capital and $51,591 deposits. The total gross earnings for the year are distributed thus: Expenses......................... Interest paid on deposits........... Depreciation, furniture and fixtures. Guaranty fund ................... Net profit for the year............. ................... $8,641.24 ................... 2,589.69 ................... 600.00 ................... 3,894.46 ................... 23,220.50 $38,945.89 The shareholders received 8 per cent on their investment. The total Guaranty Fund and Undivided Earnings after paying dividends amount to more than $36,700. HEADGEAR WORKERS' CREDIT UNION, NEW YORK CITY This is one of the youngest credit unions in New York State and has grown most rapidly. Organized early in 1924, it had at the end of that year 550 mem bers; at the end of 1925, 850 members, and at the end of 1926, 1,150 members,— all of them affiliated with the Cloth Hat, Cap and Millinery Workers' Inter national Union. At the close of the year more than $175,000 worth of stock has been subscribed for by the membership, and more than $138,000 actually paid in. Business done during the past year has been $125,000. Of the total assets of $150,000, $140,000 is outstanding loans. The guaranty fund is $5,000. Since January 1st, a department for savings deposits has been opened and during the first 12 days of the month $15,000 had been taken in. In November, 1926, the Directors published a neat little booklet of 16 pages setting forth the purposes and accomplishments of their credit institution. At the very beginning they make known the exact position they hold in the bankiner world. "The Headgear Workers' Credit Union," they say, "is a co-operatrce;; enterprise. By that it is distinguished from the many thousands of private . banks. The deposits of these private banks amount to billions of dollars. And the profits ... go almost entirely to the great capitalists who are the only ones having a vote in the management of these private banks." Then, after showing how their credit union is controlled by its .depositor and borrower members, the statement continues, '' The greater the number of workers keeping- their deposits in co-operative Credit Unions, and controlling their own financial operations, the greater power may be gained by the workers to weaken, at least to a certain extent, the abuses exercised by big capital through their arbitrary control of credit.'' Several interesting innovations have been inaugurated by these progressive co-operators. The newly opened depositors' department can be duplicated in many of the other credit unions. But there are few others which provide group life insurance for their members, as the Headgear Workers C. U. is doing. A $1,000 policy costs only 90 cents per month. Nor do others provide an Exchange Check Service which offers to members who do not maintain ordinary checking1 accounts at the big banks the privilege of having checks drawn on the Credit Union checking account for the purpose of paying gas or rent bills. All banking is done with labor banks, the Credit Union having accounts with three of these labor institutions. This co-operative credit organization is affiliated with the National Credit Union Extension Bureau of Boston, The Co-operative League, and the New York State Association of Credit Unions. At the members' meeting in January a resolution of sympathy for the bereaved families of miners killed in the disaster at Ishpeming, Michigan, was presented and passed. Also a $25 scholarship was voted for the Training School to be conducted by the Eastern States League. C. L. \V5-I L .—M 10 o o o s. 5=3 DELEGATES AND VISITORS TO THE FIFTH CO-OPERATl VE CONGRESS held in Minneapolis from November 4 to 6, 1926. The group is in front of the main entrance of the North Plant of the Franklin Co-operative Creamery. In the front row, just to the right of center, is IVirs. J. K Warbasse with Dr. Warbasse, P:esident of The League, on her left, and Harold Nordby, President of the Franklin Associa tion on her right. F. F. Burandt, Chairman of the Franklin Education al Committee, is on Dr. Warbasse's left, and then in order are Mrs. Kingsley and Mrs Solem (both of the Franklin Women's Guild), John F. McNamee, Editor of the Locomotive Enginemen's and Firemen's Magazine, and Matt Tenhunen, President of the Co-operative Central Exchange. V. S. Alanne, Secretary of the Northern States League, is third from left in front row. Eskel Ronn, Manager of Central Exchange, is next to the left end of second row with part of his chin hidden behind Ole Ogg's shoulder. W E Regli, Accountant for The League, is smiling over Ogg's other shoulder. E. E. Branch, President of New Era Life Association (light overcoat), is fifth from left in front row standing. A. S. Go'ss, Master of Washington State Grange, is third from left in back row: Otto Endres, President of Eastein States League, is fourth; Milo Reno and A. E. Cotterill, President and Vice-President, respectively, of Iowa Farmers' Union, are sixth and seventh in the last row. A. W. Warinner, Educational Director of Central States League (wearing glasses), is southeast of Endres, and Cedric Long, Secretary of The Co-operative League, is in front of Endres' right shoulder. Mary E. Arnold, Manager of Consumers' Co-operative Services, N. Y., is the lady almost hidden at left center of next to last row. J. Liukku, Manager of Co-operative Trading Co. of Waukegan (bow tie), is fourth man from extreme right. On same level to Liukku's right (black mustache), is Joseph Blaha, Manager New Co-operative Company of Dillonvale, Ohio. Two more spaces to the left, at same level, and squinting toward Blaha, is H. V. Nurmi, Accountant for Central Exchange. It would take pages to give the names of the other celebrities present. as «- pi * Z, K 3*%%s-33 CO-OPERATION CO-OPERATION 29 member of more than 13 shilling 8 pence. One of these two societies has an average of 16 shillings 7 pence; the other an average of 16 shillings exact. But among the societies with a mem bership of only a few thousand, or per haps only a few hundred, there are eight where average weekly purchases exceed 20 shillings; and eighteen where the average is more than 17 shillings. In Ireland the same holds true. The large Belfast Society has average sales per member of 14 shillings, while the little Clonmel Society, with only 343 members, has an average of 34 shillings. Perhaps these figures are not com plete enough to have great significance: but they are interesting. DEMOCRACY IN FARMERS' ORGANIZATIONS We have recently seen an interesting discussion of the relative virtues of the federated type of marketing associa tion and of the highly centralized type. It is almost universally believed that the former are democratic and the latter are not. It is often said that four of the large "Sapiro" organizations failed because they were highly centralized and un democratic. Three of these, the Honey Producers, the Alfalfa Growers and the Rice Growers (all of California) were of the federated type. Again, in the federated type, the growers usually have nothing whatever to say about the selection of the sales methods; they control only picking and packing, while the important business of selling is in the hands of a central sales agency. In the centralized type, on the other hand, the members directly elect the central officials. Finally, only 25 per cent of th« federated associations in California have the one-man-one-vote rule, while 85 per cent of the centralized associations have it. One-eighth of the federated as sociations vote on the basis of product owned and controlled by the members, while no centralized association votes this way. True we are still for the federated system. But we realize that the other fellows have their good arguments, too. WHEN MATERIALISM IS A VIRTUE "In Ireland," says a recent book on co-operative marketing, "the failure to give a balanced support to the material istic side (of co-operation) is endanger ing the whole co-operative program.'' There are many communities in this country as well where proper regard is not given to the materialistic side of the co-operative movement. This may sound like strange doctrine to those who know how excessively materialistic the average American is, how the very materialism of America is one of the greatest ob stacles in the way of co-operative prog ress. But there is a pendulum-like swing of social values in this country. Here and there small groups of men and women, in revolt against this very ma terialism, swing far to the other extreme of excessive emphasis upon sheer ideal ism. And very often it is these folks, reacting most strongly against the cur rent social standards, who set out to save their communities by starting a co-oper ative society. Naturally they are swayed so much by their devotion to lofty ideals, that they forget economic realities, put all their trust in phrases, in their own emotional loyalty to the cause; and for getful of the fact that the average house holder is still the same old materialist animal he always was, tries to win him to support of the co-operative by sheer propaganda. Result: neglect of busi ness principles, an untidy and poorly equipped store, mediocre service to the customers, inferior management, no ade quate bookkeeping; then increasing diffi culties, disagreements among the leaders, inability to meet bills, bankruptcy. Ireland and America may both suffer greatly from an excess of emotional re action against the materialism which has cursed both countries. Let us learn to recognize this type of idealist whose loyalty to co-operation is more of a nega tive attitude to the capitalist system than a constructive interest in a system of distribution based on service. C. L. Foreign THE TRADE OF THE WHOLESALE SOCIETIES OF THE WORLD The following figures are taken from the International Co-operative Bulletin for November, 1926. They show, in pounds sterling, just how much business each of these organizations has done in 1924 and 1925. 1924 1925 Austria. Grosseinkaufsgesellschaft b'sterr. Consum- vereine .................................... £1,983,191 £2,061,153 Belgium. Federation des Societes Co-operatives Beiges..................................... 1,294,436 1,405,080 Ceecho-Slovakia. Velkonakupni spolecnost konsum- uich druzstev ............................... 3,664,714 3,363,289 Grosseinkaufsgesellschaft fur Consumvereine..... 1,829,307 1,485,912 Denmark. Faellesforeningen for Danmarks Brugs- foreninger ................................. 6,445,666 7,035,750 Esthonia. Eesti Tarvitajateuhisuste Keskiihisus.... 684,623 .802,118 Finland. Suomen Osuuskauppojen Keskuskunta.... 3,598,474 3,667,793 Osuustukkukauppa r.l. ........................ 3,127,231 3,435,602 France. Magasin de Gros des Co-operatives de Fra'nce 4,494,502 3,517,989 Georgia. " Tsekavshiri, Tiflis .................... 452,690 546,741 Germany. Grosseinkaufsgesellschaft deutscher Kon- sumvereiiie, Hamburg ....................... 8,208,824 11,262,066 '' Gepag,'' C.W.S. of Imperial Union, Cologne..... 1,190,154 1,558,362 Great Britain. C.W.S. Manchester................ 72,888,064 76,585,764 S.C.W.S., Glasgow ............................ 17,307,707 17,659,069 Holland. "Handelskamer," Rotterdam ........... 980,424 1,052,679 Hungary. "Hangya," Budapest ................. 2,043,037 2,082,063 Grosseinkaufs-und Verwertungs-Aktiengesellschaft, Budapest .................................. ........ 48,140 Japan. C.W.S., Tokyo .......................... 166,868 1,735,606 Latvia. Centrale Saveeniba "Konzums," Riga..... 1,090,067 1,328,572 Lithuania: Lietuvos Koperacijos Bendroviu Sajunga, Kaunas ................................... ........ 190,196 Norway. Norges Kooperative Landsforening, Oslo.. 996,535 1,157,590 Poland. Zwiazek Spoldzielni Spozywcow, Warsaw.. 883,315 1,576,386 "Narodna Torhowla," Lemberg ................ 110,179 107,810 Rumania. Centrala Cooperativelor de Productie si Consum, Bucarest .......................... ........ Russia. "Centrosoyus," Moscow ................. 17,680,000 1,201,000 "Selskosoyus," Moscow ....................... Scandinavia. Nordisk Andelsforbund, Copenhagen. 870,761 Sweden. Kooperativa Forbundet, Stockholm....... 5,049,610 Switzerland. Verband schweiz. Konsumvereine, Basle ..................................... 5,107,200 "Konkordia," Zurich ......................... 284,593 Union of East Swiss Agricultural Societies, Winter- thur ...................................... 1,115,852 Ukraine. "Wukopspilka," Charkow .............. 3,650,100 "Silsky Gospodar," Charkow .................. 1,944,000 United States of America. Central Co-operative Ex change, Superior ........................... 139,367 552,761 19,800,000 1,752,000 815,348 5,443,143 5,026,131 250,021 1,146,348 7,646,600 900.500 171,920 30 CO-OPERATION CO-OPERATION 31 FASCIST PERSECUTION IN SOUTH TYROL The Co-operative League has recently received, a communication from a pro fessor at the University of Berlin, M. Bering, who has been studying the co operative movement in Tyrol, and this letter shows the devastation being- wrought by the Fascist! in this province. The farmers of South Tyrol had a most difficult time during many decades when they had to compete single handed with the farmers of more prosperous sec tions of Italy and Switzerland. Then they organized co-operative marketing and credit societies, which, in the course of time, became very powerful, until recently these Eaiffeisen Banks have counted 80 per cent of all the agricul turists of the country among their mem bers or depositors. Since 1924, however, the Italian Government has been en croaching more and more upon the rights and autonomous control of these banks, and especially their central bank (Raif- feisenzentrale), until finally a meeting of the Central Committee of the Central Bank was invaded by armed Fascists, the members horribly beaten, and the Com mittee finally dissolved by decree. A commissioner of the Government has been made overseer, an Italian has been made administrative secretary, and the Italian language instituted for adminis tration of affairs and for intercourse in the business (though very few of the people understand this language). The Board of Directors has finally been forced to resign and their places taken by Fascist! Italians. Thus the Tyrolese farmers have now completely lost control of their own money and their own co operative financial institutions. BRITISH CO-OPERATIVE PARTY As a result of the joint conference of committees from the Co-operative Party and the Labor Party of Great Britain, the following proposals are to be sub mitted to the National Conference of the Co-operative Party which was held at Derby on January 29th and 30th. 1. That a joint Sub-Committee be es tablished representative of both execu tives, with regular meetings and defined powers, subject to the confirmation of the two national executives. 2. That there be an exchange of the Minutes of the two national executives. 3. That arrangements be made from time to time for joint campaigns on special subjects and during elections. Additional proposals are made as to the organization and strengthening of local co-operative parties or councils. Thirty men and women have already been selected to contest for seats in Par liament when future vacancies occur, and ten of these future candidates have already been assigned their constituen cies. Other assignments will be made in the near future. The Co-operative Party is now being- supported by 447 subscribing societies which represent more than two million of the membership of the British move ment. HOW THE I. C. A. GROWS The International Co-operative Alli ance has made remarkable strides since the years before the war, as the following figures show: 1913 1926 Countries repre sented ....... 23 34 1 'nions (Regional or National). . 55 85 Societies . . ..... 3,871 85,000 Individual co- operators .... 20 millions 50 millions THE ACHIEVEMENTS OF CO-OPERATION The conflict of Co-operation is with immorality and dishonesty in all its forms, with tyranny and injustice in every land; with war amongst men and all that makes for it; with inequality which deprives men of the opportunity of a full life—of the wealth which is joy, love and admiration. The Co-operative Movement has waged a successful battle with the powers of evil and by peaceful evolution is lifting the life of the people to a higher plane. We have reason to rejoice in the force of our principles and in the results they have achieved. (International Co-operative Bulletin.) News and Comment CLEVELAND'S LARGEST CO-OPERA TIVE The Working-men's Co-operative Mer cantile Association of Cleveland is the largest as well as one of the oldest of the co-operatives in Northern Ohio. To-day it has more than 1100 shareholders and is operating six stores in various parts of the city. Sales total about $200,000 per year. One of the absolutely unique features of this Association is its Curing Plant and Smoke House in which it produces boiled ham, big bologna, wiener, garlic spiced ham, veal loaf, cottage ham, salami, blood bologna, head cheese, black bologna, bacon, frankfurters, smoked liver sausage, smoked ham and other good things. The entire output of this plant is sold through the six stores of the Association, and totals nearly $150,000 a year. People in Cleveland who know these products proclaim them so much superior to similar products from the private packers that there is little basis for comparison. The Working-men's Co-operative Asso ciation has as its president Joseph Mar- tinek, well known publicist among the Bohemians in this country. The General Manager of the stores is Mr. Elsner, and the secretary for several years is Joseph Matejka. Four per cent is paid as inter est on capital stock, and recent purchase rebates have been at the rate of 3% per cent. Net gain for 1926 will come to about §7,000. Paid in capital is $24,870 and the Re serve just short of $10,000. Seventy-five per cent of the business is done with members. CLEVELAND COAL COMPANY The Cleveland Co-operative Coal Com pany, organized three years ago, lost a great deal of money during the first year or year and a half. Late in 192-i Roy Shanks took over the management. Mr. thanks had been manager of one of the most .successful co-operatives in Illinois several years ago, but between 1920 and 1924 had served in the editorial offices of the Journal of the Brotherhood of Locomotive Enginemcn and Firemen with that fine co-operative publicist. John F. McNamee, editor of the maga zine. Needless to say, Mr. Shanks found enormous debts hanging over the com pany, its credit gone, its work disorgan ized. Since that time about $12,000 of in debtedness has been wiped out and within the next six months, with continu ing good fortune, the co-operative should be out of debt, The paid in capital is only $3,500 and as anunual sales are about $160,000, this means a heavy strain on the resources of the organization. More than 25,000 tons were sent out of the yards during the fiscal year which closed on September 30th last. Twenty trucks are kept busy during part of the year, all of them hired from private in dividuals or firms. The company owns its office equipment and yard equipment only. Gradually this institution is climbing toward the front ranks of co-operatives in Ohio. Needless to say, it is receiving the wholehearted support of the best of the other co-operative societies in the city. A NOTE FOR FARMERS The Engineering Department of Iowa State College has been conducting some research into the productivity of farmers in different parts of the world. The table compiled and reproduced below shows that prosperity varies directly with the substitution of horse power for man power in farm labor. Italv. . . ......... France . . ........ Germauv . . ...... United Kingdom. . United States. .... Alabama . . ...... New York ....... Iowa . . .......... Nebraska . . ...... Horse potent- per worker .19 .37 .55 .88 . 2.05 .81 . 1.69 . 3.86 . 4.71 Value of production per worker $ 45.00 QO no 119.00 126.00 292.00 112.00 250.00 595.00 910.00 Ill 32 CO-OPERATION CO-OPERATION CO-OPERATIVE FIRE INSURANCE COMPANIES The consolidated financial report of the five co-operative fire insurance com panies maintained by the farmers of Sullivan and adjoining counties of New York State, is a very impressive docu ment. Boris Fogelson, the secretary, and the various boards of directors are to be congratulated 011 the fine progress they have made. The first of these companies was organized in 1913 and the insurance in force at that time was only $656,000. This single company continued alone in the field for seven years and then in 1920 the farmers organized their second com pany, The American Co-operative Fire Insurance Company. In 1922 The Third Co-operative Fire Insurance Company was organized, in 1924 The Mountain Co-operative Fire Insurance Company. The fifth and last of these called The Fifth Co-operative Fire Insurance Com pany began business in 1926. The total insurance in force with all five companies at the end of the fiscal year is $12,643,505 and total fire and lightning loss paid for the year, $198,120. There are 3,439 policies in force at the present time; a gain of 85 over the pre vious year. Nearly one-half of these policies are in the oldest of the five com panies. Total receipts for the year in all companies are $311,000 and the total of all losses, expenses and other disburse ments $267,332. From its earliest days the co-operative fire insurance company has maintained close relationship with the Co-operative League. It enjoys at Albany the reputa tion of being one of the best administered of the farmers' companies in New York State. DO CO-OPERATIVE OFFICIALS NEED EDUCATION? One of the most prosperous and best known of the co-operatives in this coun try has recently held meetings to discuss co-operative problems. Excellent educa tional work, of a sort, has been done by these co-operators for years. But it was the flashy kind of education, more accu rately described as propaganda or pub licity for the store. In the first of these recent meetings the leader thought he would try out the men and women present with a few fundamental questions. "What is Economics?" And only 12 per cent of the co-operators dared say that they knew what economics is. "Why did you join the Co-operative Society?" The secretary of the Board replied "Because I wanted to get into business for myself." And the President of the Board spent half an hour trying to prove that a co operative is a profit business, and ad mitted that never before in his life had he heard that the Co-operative Movement was designed to do away with the profit system. No comment on the above is necessary. But many of our readers would be sur prised to learn what co-operative society this is. WESTERN TRIP BY DR. WARBASSE Starting at Tucson, Arizona, on Mon day, the 3rd of January, Dr. Warbasse travelled eastward speaking at colleges and universities, at the Annual Conven tion of the Nebraska Farmers' Union, and at the Consumers' Co-operative Societies in Waukegan and Bloomingtoii, Illinois. The following are the institu tions of learning at which he spoke: University of Arizona, Tucson. University of New Mexico, Las Crucas. University of Denver, Colorado. University of Kansas, Lawrence. University of Omaha, Nebraska. Creighton University, Omaha. Loyola University, Chicago. University of Chicago. Dr. Warbasse averaged three lectures apiece at these colleges and universities. Usually there was a lecture to a class in labor problems, then another to a class or a combination of several classes in general economics, finally a talk to some special group of advanced students. On a few occasions he spoke at assemblies of the entire faculty and student body. LECTURE COURSES FOR MASSA CHUSETTS SOCIETIES The three co-operative associations operating at Fitchburg, Maynard and Gardner under the name "United Co operative Society" are pooling their re sources and planning a series of sixteen lectures for their directors and em ployees. The lecturers will travel about from one town to another for a period of approximately three weeks. The purpose of these courses is to make of co-operative officials and employees better co-operators. The committee in charge believes that one of the chief reasons we do not have more understand ing of co-operation among the rank and file membership is because the employees and directors themselves who are the con necting link between the society and the public do not understand sufficiently the meaning of their work nor take seriously enough their responsibilities. The pro posed lecture courses, therefore, consti tute a brief evening school in problems of co-operative history and principles and their application to every day work in the co-operative store. HOW THE CHAIN STORES MULTIPLY Merrill, Lynch and Co. has just issued a statement which tells us that there are 22 large chain store systems in the United States, doing an aggregate business of $1,369,000,000 in 1925. This is nearly 50 per cent of the total motor output, or 100 per cent of the total petroleum production, or 100 per cent of the total production of bituminous coal. Merrill, Lynch and Co. claims that they finance sixteen of these companies and give us, in the New York Times of December 7th, the following figures. It is interesting to note that such large companies as Woolworth's, Atlantic and Pacific Tea Co., Liggett's Drug Stores are not included in this list. Stores Sales Net After Operating 1925 Taxes 5-&-10 Cent Stores— Kresge ........................ 352 $105,965,610 $11,809,260 McCrory ...................... 189 29,593,208 2,782,695 Grocery Stores— National Tea ................... 825 47,450,885 1,569,636 First National ................. 1,657 54,877,121 1,903,334 Safeway (incl. Skaggs) ......... 732 44,886,000 1,487,260 Jones Brothers ................. 544 24,254,240 149,812 shoe Stores— G. R. Kinney .................. 266 16,358,610 1,135,214 Melville Shoe .................. 234 10,903,420 651,932 Peltman & Curme .............. 72 9,154,885 486,494 Department Stores— J. C. Penney ................... 745 91,062,616 7,452,567 Oppenheim, Collins ............. 7 20,994,092 1,567,800 Kresge Dept. .................. 2 10,101,563 131,641 The Fair ...................... 1 26,957,739 1,403,540 Drug Stores— People's Drug ................. 40 5,208,979 421,262 Restaurants— Waldorf System ................ 119 12,832,953 1,035,852 Auto Supply Stores— Western Auto Supply ........... 24 9,452,424 638,035 Total...................... 5,809 $521,054,315 $34,626,334 34 CO-OPERATION CO-OPERATION 35 FRANKLIN MALE CHORUS HAS SUCCESSFUL YEAR The Franklin Male Chorus, composed of workers in the Franklin Creamery Association of Minneapolis, had a most successful season during 1925 and 1926. Thirty-one concerts were given to an ag gregate audience of 21,500 people. Two hundred fifty hours were spent in re hearsals alone. These figures would mean very little for a professional chorus or choir, but for a group of ama teur singers, most of whose time is necessarily devoted to earning a living by manual labor, they are significant. Work for the coming season was re sumed on September 13. The delegates to the Fifth Congress, most of whom were strangers to Minneapolis, had an opportunity to hear these singers for the first time. The new officers are: Hjalmar Hansen, president; A me Froise, secretary-treasurer; Emil Bak- ken, librarian. Olaf Ha It en continues as director. A CO-OPERATIVE THAT HOLDS A MONOPOLY The Farmers' Co-operative Associa tion of Herman, Michigan, boasts of being one of the few societies in the United States which has a complete monopoly of the business in the locality. There are 50 Finnish families in this farming community. The central busi ness building houses the post office and the store, and there is no competition for either. The co-operative was incorpo rated in 1918 with only $700 of capital. Since then the savings have been rein vested by the members until to-day the business is one of the soundest in the state. The society is a member and a loyal buyer from the Co-operative Cen tral Exchange. There are tens of thousands of other towns in the country where the post office has a monopoly of its particular business. Why can't the same thing be said for more of the co-operatives ? A NEW CREDIT UNION ADVISOR FOR NEW YORK The department of Eemedial Loans of the Russell Sage Foundation of New York City has for many years taken a very active interest in promoting credit unions, and the progress of the move ment . in the Empire State is due primarily to the sponsorship of this organization. Announcement now comes that Mr. Eolf Nugent, a graduate of Amherst Col lege and formerly a member of the staff of the Department of State and Finance at Harrisburg, Pennsylvania, is now ap pointed as head of the credit union work of the Foundation. This means that he will devote most of his time to organizing new credit unions, advising those which seek assistance, and in general working for the extension and strengthening of the credit union movement in New York State. Members of the staff of The League know Mr. Nugent and congratu late both him and the credit unions on this appointment. DEMOCRATIC CONTROL OF CO-OPERATIVES "Consumers' Co-operation is demo cratic in theory but less democratic in practice. The average member of a co operative society finds considerable diffi culty in getting his point of view recognized, and the control comes from above rather than from beneath. Indeed, the Board of Directors, when once elected, becomes the supreme authority, and the members have a tendency to become inarticulate. "This is a state of affairs which is a grave criticism of modern forms of Co operation ; because the very development of Co-operation should have had the ef fect of educating the individual to take a lively interest in his co-operative or ganization. The large societies with memberships of 100,000 and over arc, in many centers, controlled by a body of little over one thousand members who attend their business meetings, and by the four or five thousand members who elect the directors. From the point of view of democratic principles, this state of affairs is not at all conducive to the realization of our ideals. . . . "I desire to state, without equivoca tion, that an organization which fails to excite the active interest of its member ship is building upon sand. I desire to raise an arresting hand to those co-oper ators who consider all is well with our organization. All is not well with the large societies whose policy is determined bv such a small proportion of their mem bers. Great constitutional changes have been made in some societies, and these changes have been determined by a mere handful of members. . . . "I am impelled by my regard for our irreat movement to point out the grave dangers which confront us. Who are the people determining the policy of the average co-operative society? Let those who associate with the administration of a co-operative society ask themselves whether their society is being controlled by an enlightened membership. If the answer is in the affirmative, then all is well. If, however, we are true to our selves, we shall be forced to admit that the conditions now prevailing are far from satisfactory. "Although our trade is advancing, we are missing the supreme purpose of Co operation, namely, a conscious co-opera tive membership.'' JOSEPH REEVES, Educational Sec'y, Royal. Arsenal Co-operative Society, London, England. WHAT KIND OF A MILKMAN DO YOU HAVE? Does the milk company in your town publish regularly the bacteria count and the butterfat test of its milk ? Does it pay to its employees from $5 to $25 more than the union scale de mands! Does it run a nutritional clinic and a posture clinic for the benefit of the chil dren of its customers ? Does it send out to the farmers pro ducing its milk an expert to show them how to get better milk under more sani tary conditions! Has it succeeded in the past five years in reducing the price to the consumers of milk three or four cents per quart ? Can it get from the local Health Com missioner a statement to the effect that it has been the cause of a great reduction in the infant mortality rate! Has it returned to its customers more than $100,000 in the form of rebates on purchases 1 Do its officials actively support the trade union and co-operative move ments ! Does it donate more than $10,000 to the promotion of Co-operation and labor unionism ? Of course not. Unless you live in Minneapolis and belong to the Franklin Co-operative Creamery Association. The Franklin does all of these things. From The League Office CO-OPERATIVE CORRESPONDENCE SCHOOL l(1or the first time the American co operative movement is to have a national Correspondence School. As a result of « discussion of the whole subject of co operative education at the Minneapolis Congress in November, a committee was appointed to correlate the work of the various district Training Schools. When this committee met, the decision was Jiiade that as a necessary preliminary to Training Schools, we must have a cor respondence school which will at least teach the elementary .subjects, a knowl edge of which every applicant for admis sion to the training schools should have. '"'CP a correspondence school is organ ized to handle these primary subjects, every effort will be made to organize courses in the more advanced subjects as well so that young men and women inter ested in the movement but unable to attend the full time schools, may obtain instruction in co-operation directly from co-operative headquarters and have their papers corrected by co-operators active in the American movement. A,s a result of this preliminary work of the committee, Mr. Colston E. Warne. a member of the Board of Directors of the League, was interviewed. Mr. Warne three years ago in Illinois made one of the most exhaustive surveys of a state wide movement ever conducted in the country. The findings and conclusions 36 CO-OPERATION CO-OPERATION 37 of this survey are contained in his book just published by the University of Chi cago Press: The Co-operative Movement in Illinois. In 1925 and 1926 lie did some excellent co-operative work in Den ver, Colorado. This year Mr. Warne is teaching at the University of Pittsburgh, Pa., and has volunteered to devote some of his leisure time to preparing the initial courses for the League correspond ence school. The first courses to be ready are one in elementary English and second, in elementary arithmetic. Many of the young people attending the training- schools have proved to be very deficient in these subjects and such deficiencies have seriously handicapped all their other work. The courses will be ready in February or March and applicants for admission to the training schools to be conducted later in the spring at Minnea polis and New York will be advised to take these courses unless they can pass examinations in English and arithmetic. Courses dealing with the more advanced phases of the co-operative movement both on its practical and theoretical side will be organized at a later date. More complete information about these courses may be obtained from the League office in New York. FULL TIME TRAINING SCHOOLS For April and May, 1927, two full lime training schools are being planned for co-operators, one at Minneapolis to be conducted by the Northern States League, and the other at Brooklyn, New York, to be conducted by the Eastern States League. The Northern States League has al ready held three such schools and this will be the fourth. The students will pay a tuition fee of $20 or $25. The teachers will be leaders in the work of the North ern States societies. The courses will probably be conducted in the Franklin Creamery Building and classes will be conducted for seven or eight hours each week day for eight weeks. The subjects taught will be History and Principles of Co-operation, Co-operative Bookkeeping and Accounting, Problems of Manage ment and Administration and allied subjects. The directors of the Eastern League- plan to open their school about the 18th of April at a co-operative clubhouse in Brooklyn. The subjects taught will be the same as those taught at Minneapolis, and H. V. Nurmi, who has been one of the active teachers for many years in the Northern States will be Director in Charge. The course will be continued for six weeks and the students will pay a tuition fee of $25. Several scholar ships have already been promised by various societies which means that many of the students will have to pay only for their board and room if they come from outside the city. The one point at which these courses will differ from those at Minneapolis is in the handling of the subjects under the heading Problems of Management and Administration. In the Eastern states the co-operative store does not hold the prominent position that it holds in the West; therefore consider able attention will be given to other types of co-operative business, such as restaurants, bakeries, housing organiza tions, etc., according to the interest and requirements of the students. Both of these schools are excellently located. The students taking the East ern courses will have a number of oppor tunities to visit the best bakery and restaurant co-operatives in the United States which are located in New York, and also a large number of co-operative housing associations, in addition to co operative stores, credit unions and other types of co-operative business. At the same time they will have the opportunity to hear talks by the leaders of these large organizations and to discuss the co-opera tive problems with them. The Western school will be held in the plant of the largest consumers' co-operative in Amer ica and will be within easy distance of a few very good co-operative stores to which visits may be made. For complete information about the Eastern States School, letters should be addressed to the Secretary, Eastern States Co-operative League, 167 West 12th Street, New York City. Informa tion about the Western School will be supplied by V. S. Alanne, Secretary of the Northern States Co-operative League, 2108 Washington Avenue, North, Min neapolis, Minn. Directors' Pa£e WHERE DO PUBLICITY AND ADVER TISING MEET? Many a time does the question come up in the board meeting, "Just what is the difference between co-operative pub licity and co-operative advertising; and where should the money for each of these activities come from?" Here is the answer of one of the largest societies in England, the Plymouth Co-operative Society. A publicity committee has two func tions : that of advertising the society and its goods; and that of co-operative pub licity. Advertising, in turn, may be divided into three sections, viz.: (a) general advertising; (b) departmental adver tising; and (c) special advertising. 1. (a) General advertising includes all announcements to the public which declare the benefits of Co-operation in general and the advantages of mem bership in the local society in par ticular; all matter relating to the growth and progress of the society, etc. (b) Departmental advertising is that undertaken in behalf of special departments or special aspects of the co-operative work. (c) Special advertising is for the purpose of playing up striking de velopments, opening of new premises, statements concerning dividends, sea sonal sales, etc. Many of the same channels of publicity as are used for departmental advertising can be used here; also the use of novelties, such as toy balloons, puzzles, etc. 2. Publicity proper is the feeding of the public press, the labor press, and other organs of publicity with care fully written news .paragraphs de signed to set forth the value of the co-operative to the community at large and to society in general, and calcu lated to lead the public to talk about the society and its progress. In the United States we should characterize this kind of publicity as that which is designed to effect the psychology of the public. All items of advertising under 1, para graphs (b) and (c) should be charged to the particular departments featured or to general business overhead. All items under 1 (a) or 2 should be charged to the ' educational department. All announcements concerning regular or special meetings of the members should be charged to the society itself. District Leagues DISTRICT LEAGUES The Board of Directors of the Central States League met on January 2nd at "Waukegan. Date for the Annual Conven tion was set for Sunday and Monday, May 22nd and 23rd, and the event will be held at Bloomington. The afternoon of the second day will be devoted to a joint buying conference. Sub-commit tees were appointed as follows: Creden tials—Fred Bachmann (Glen Carbon), M- P. Murray (Eiverton), and C. E. Gillens (Villa Grove). Program—A. W. Warinner, Educational Director, E. B. Zombro. (Bloomington), and J. Liukku (Waukegan). Local Arrangements—J. C. Alien, Hazel B. Warinner, Mrs. Ed, Foreman, William Koss and L. B. Smythe, all of the Bloomington Co operative Society. Considerable attention was given to the matter of reviving the educational paper, to be known as the Central States Co-operator. Publication will be re sumed very soon. The efforts being made to work out a scheme for joint bonding of co-operative officials on a national scale were ap proved, as was the campaign for elimina tion of income tax requirements which afflict so many of our consumers' societies to-day. 38 CO-OPERATION CO-OPERATION 39 Book Reviews CO-OPEEATIVE DEMOCEACY—NEW EDITION The 1927 edition of Co-operative De mocracy, written by Dr. Warbasse and first published in 1923, now appears completely revised and rewritten. The new edition is shorter than the first, containing 330 pages instead of 490. The beginnings of the movement and the position it occupies in the various coun tries of the globe are now related in Part I instead of Part V as formerly. Other changes in the form in which the material is presented have been made. All statistics have been brought com pletely up to date. The League office received the first, shipment of the new edition on the 12th of January and within 24 hours scores of large bundles had been mailed out to all parts of the country in response to orders which have been accumulating ever since the old edition was exhausted. Though the publisher's retail price is $3.00, The League is offering a few hun dred copies at the special Co-operator's Price of $1.50. STOEY OF THE DAIEYMEN'S LEAGUE The little 42-page pamphlet "Story of the Year 1925-1926 " relates the progress of the Dairymen's League Co-operative Association. This organization of farm ers, operating in six states, having a membership of 16,310 dairymen organ ized in 825 locals, and doing a business of $66,632,885.00, is probably the largest single co-operative marketing association in the country. Two-thirds of its busi ness is in fluid milk for the various city markets. Since the canning plants were sold out to Borden, there is very little production of evaporated, condensed and other forms of milk sold. During the past year the highest net pool price ever attained by the Association was procured for the members. This price fluctuated betwen $1.80 in May, 1925 and $2.43 in December, 1925, per hundred pounds. Among assets are listed nearly $11,- 000,000 of land, buildings and equip ment. Among the liabilities are more than $12,000,000 of certificates of indebt edness (this is a non-stock association). CO-OPEEATIVE EMPLOYEES' HANDBOOK The Co-operative Trading Company of Waukegan, Illinois, has rendered a very real service in publishing this little handbook of 52 pages neatly bound in green heavy paper cover. After a few pages devoted to a study of the purpose, scope and history of the co-operative movement in general, there are several sections dealing with the Co operative Movement in the U. S. A., Co-operation and the Labor Movement, International Co-operative Alliance, The Co-operative League of the U. S. A., the Central States Co-operative League, Women Co-operators, and Co-operative Books and Papers. Then follows the history of the Co-operative Trading Company. The latter half of the book is devoted to a series of rules governing employees of the Waukegan Association. There are general rules, rules for workers in the grocery department, rules for the meat department, rules for the office department, rules for the dairy de partment, rules for department mana gers, rules for the Board of Directors, and rules governing the General Man ager. A little book of this kind is a genuine contribution to the literature of our youthful co-operative movement in America. We need not discuss here the many minor faults which are inevitable in a pioneer work of this type. Other societies will do well to follow this initial effort on the part of the Co-operative Trading Company of Waukegan. PEOPLE'S YEAE BOOK—1927 The new People's Year Book is out. In addition to a full review of co-opera tive developments in all parts of the world, the book contains several authori tative articles on the currency crises in various European countries, specifically Belgium, France, Italy and Poland. There are also a comprehensive study of British Capitalism, and articles on the labor industrial movement, the work of Parliament and many briefer articles on the recent development in electricity, housing, motoring, aviation, art and literature. The illustrations are up to the customary high artistic level. Fuller Brains: "Mail, you ought to see the report our Co-op Manager handed us last night Three-quarters of the farmers in the county are members; two hundred new ones since Christ mas. A net gain of $20,000 on the year's business. How's that for Co-operation, Old Boy, eh, what!" If. T. Dome: "I heard Soakem, the grocer, tell our pastor your organization isn't co operative at all—just pure socialism. I reckon he's right, too, hecause you fellows don't believe in private property nor initiative nor self-reliance nor none of those things." "The Co-operative Pyramid Builder" Official Organ of Co-operative Central Exchange is a snappy, live co-operative magazine. Get in line! Subscribe NOW Subscription price 50c a year. CO-OPERATIVE CENTRAL-EXCHANGE Superior, Wis. STUDY CO-OPERATION AT HOME Correspondence Courses prepared and ad ministered by experienced co-operators are now ready Preparatory to entrance for Co operative Training Schools 1. Elementary English 2. Commercial arithmetic Other introductory courses 1. Bookkeeping for Co-operators 2. Principles and Theory of Co-operation For full particulars write THE CO-OPERATIVE LEAGUE 16? Westy ISith Street New York City Index for CO-OPERATION, 1926, sent free on request. The Canadian Co-operator Brantford, Ontario, Canada The organ of the Canadian Co-o»era- tive Movement, owned by and cot ducted under the auspices of The Co-operative TJnfon of Canada. Published monthly 75c per annum CO-OPERATION, 167 West 12th Street, New York. Please send CO-OPERATION for one year to Name................................... Address.... $1.00 a year. 40 CO-OPERATION PUBLICATIONS —OF— THE CO-OPERATIVE LEAGUE HISTORICAL Per Copy Per 100 3. Story of Co-operation .............$ .10 $6.00 7. British Co-operative Movement..... .10 6.00 38. Consumers' Co-operative Movement in U. S., 1926................. .10 6.00 39. Consumers' Co-operative Societies in N. Y. State (Published by Con sumers' League ................ .10 59. Co-operative Movement in Europe.. .05 4.00 64. Progress of Co-operation in United States. ..................... .05 4.00 TECHNICAL 4. How to Start and Run a Rochdale Co-operative Society ............ .10 4.00 5. System of Store Records and Accounts................... .50 6. A Model Constitution and By-Laws for a Co-operative Society....... .05 2.50 8. Co-operative Education. Duties of Educational Committee Defined... .10 9. How to Start a Co-operative Whole sale ........................ .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-opera tive League ................... .10 29. Credit Union Primer (By Ham and Robinson). .................. .50 43. Co-operative Housing ............. .10 50. A B C of Co-operative Housing.... .10 51. Model Lease for Co-operative Apart ment House ................... .10 MISCELLANEOUS 16. Model Co-op State Law............ .10 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 33. Credit Union and Co-operative Bank .05 13. The Place of Co-operation Among Other Movements .............. .25 34. Co-operative Movement (Yiddish).. .02 1.25 30. "When the Whistle Blew" (Story, by Bruce Calvert) .............. .06 65. Reading List on Co-operation....... .10 66. International Directory of Co-opera tive Organizations .............. .35 41. Social Aspects of Farmers' Co-opera tive Marketing (By Benson Y. Landis). ...... .............. .25 42. Co-op Homes for Europe's Homeless .10 53. Real First Aid for the Farmers.... .05 55. A Better World to Live In........ .05 57. How a Consumers' Co-operative Dif fers from Ordinary Business..... .02 .60 60. The " Moral Equivalent " of Jazz... .02 62. Buttons (League Emblem in 3 colors) 34 inch diameter........ 3.00 63. Sign or Transparency of League Em blem. Green and gold, 8 in. diam.. .25 15.00 ONE-PAGE LEAFLETS (One Cent each; 50 Cents per 100; $2.50 per 500 $4.00 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- operatel; (28) Do You Know About Co-operation in Europe?; (40) Have You a Committee on Education and Recreation?; (44) What Is the Co-operative Move ment?; (45) Schools and Stores; (47) A Man's Right to a Job; (48) Tips to Co-operators; (49) The Way Out; (61) Co-operation Brings Disarmament. MONTHLY PUBLICATIONS CO-OPERATION—(In bundle lots, $7.50 per hun dred) . Subscription, per year.............. $1.00 HOME CO-OPERATOR, 4 pages...... .$1.00 per 100 INTERNATIONAL CO-OPERATIVE BULLETIN (Pub. by The I. C. A.)..........Per Year, $1.50 $1.65 if paid by check. BOOKS The following books are recommended as containing the best discussions of the modern Co-operative Move ment. They may be ordered through The League: Bergengren, Roy F.: Co-operative Banking, A Credit Union Book ..................... $3.00 Blanc, Elsie T.: Co-operative Movement in Russia . . . . . . . ....................... 2.50 Brightwill, L. R.: Animal "Co-op" Book—For Children............................ .15 Faber, Harald: Co-operation in Danish Agricul ture, 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 American edition and notes, 1922. Cloth, $2.00; paper bound ..................... .90 Hall, Prof. Fred: Handbook for Members of Co operative Committees ................... 2.00 Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Paper bound........ .60 Holyoake: Rochdale Pioneers ................ 1.00 Howe, Fred C.: Denmark, a Co-operative Com monwealth, 1921 ....................... 2.00 Jessness, O. B.: Co-operative Marketing of Farm Products ......................... 2.50 Madams, J. P.: The Story Retold............ .50 Mears and Tobriner: Principles and Practices of Co-operative Marketing................ 3.20 Nicholson, Isa: Our Story................... .25 Oerne: Co-operative Ideals and Problems...... 1.25 Owen, Robert: Autobiography .............. .50 Potter, B.: Co-operative Movement in Great Britain. . . . . . . ....................... 1.00 Redfern, Percy: The Story of the C. W. S..... 2.00 Redfern, Percy: The Consumers' Place in So ciety, 1920 ............................. 1.00 Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918 ........................ 1.00 Smith-Gordon and O'Brien: Co-operation in Denmark. . . . . . . .................... 1.00 Smith-Gordon and O'Brien: Co-operation in Many Lands, 1920 ..................... 1.50 Stolinsky, A.: The Co-operative Movement. (In Yiddish). ............................ 1.00 Warbasse, J. P.: Co-operative Democracy, 1926. 1.50 Warne, C. E.: Consumers Co-operative Move ment in Illinois ........................ 3.50 Webb, B. and S.: The Consumers' Co-operative Movement, 1921. Board, $2.00; cloth..... 5.00 Webb, Catherine: Industrial Co-operation, 1917. 1.50 Woolf, Leonard: Co-operation and the Future of Industry............................ 1.00 Woolf, L.: Socialism and Co-operation........ 1.50 Co-operation in Great Britain and Ireland, paper .25 CO-OPERATION, Bound Volumes, 1915 to 1925 inclusive, each ......................... 1.25 Transactions of Second American Co-operative Congress, 1920 ......................... 1.00 Transactions of Third American Co-operative Congress, 1922 ......................... 1.00 Transactions of Fourth American Co-operative Congress, 1924 ......................... 1.00 Northern States Year Book, 1926. Paper..... .25 The People's Year Book, 1927. Cloth, $1.00; paper bound ........................... .60 (Ten cents postage should be added for all books.) COOPERATION A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in voluntary 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, December 19, 1917, at the Post Office at New York, N. Y under the Act of March 3, 1879. Price $1.00 a year. ' VOL. XIII, No. 3 MARCH, 1927 10 CENTS T«- -«- THE WORKMEN'S CO-OPEEATIVE FURNITURE FIEE INSURANCE SOCIETY, head quarters in New Yorlc, had a flourishing "branch in the City of San Francisco in 1906 when the city was devastated ly fire. This picture of Kearney Street, taken on April 18th, shows what was left in some parts of the city. The Co-operative Furniture Insurance Society paid every claim and paid it promptly, while many of the private companies actually went bankrupt. J-he interesting story of the progress of this society is told on the following pages. CO-OPERATION 43 I, 42 CO-OPERATION Workmen's Co-operative Furniture Insurance '' The First Fifty Years Is the Hardest.'' There are not many co-operative societies in the United States that can testify to this fact out of their own experience. The Workmen's Furniture Fire Insurance Society, with headquarters in New York, reached the half century mark five years ago, and is going stronger than ever. The neat little illustrated Fiftieth Anniversary booklet tells a fascinating story. Some of the paragraphs from the report show in unmistakable terms the character of this organization and its founders, the difficulties with which it had to cope in the early days, and the gradual rise to a position of pre-eminence among American co-operative societies. "The Workmen's Furniture Fire Insurance Society has been founded by progressive thinking workiiigmen. It was not begun as a capitalistic enterprise for gathering in profits, but as an -organization having for its aim the mutual help of its membership and with its administration lodged in the hands of the members. "Until to-day the social legislation of the United States has scarcely made a beginning. There remain but two alternatives to the workers subjected to the buffetings of life's fortunes: they must either confide their -trust in capitalist companies or they must organize to help themselves. "Organized self-help and self-administration should be the guiding principles to actuate the workers. They are the gainers in every manner, by following these principles. The story- of the Workmen's Furniture Fire Insurance Society is a striking proof of this •principle. "The founding of the Organization dates back to the great Chicago fire in October, 1871, the flames of which swept over a great part of the city. . . . When the fire was gotten under control it had destroyed 18,000 buildings with an estimated value of $200,000,000. About 200 persons lost their lives through the catastrophe. '' This experience gave rise to mueli thought amongst the German Socialists of New York. They were members of the International Workmen's Association (the First Inter national). . . . "A general propaganda for the founding of our Organization in the City of New York was initiated in the year 1872. The holding of several public meetings in the "Casino," a hall situated at the corner of Mott and Houston Sts., in the down-town section of New York, played an important part in this campaign. This section of the city- was at that time known as the "German section." Already at the first of these meetings held, the founding of a Society for Fire Insurance was decided upon. "In September of 1872 there wag held in Holland, at the Hague, the fifth annual general Congress of the International Workmen's Association. The struggle of conflicting opinions in the International, in particular between the ' Marxists,' ' Blanquists' and 'Bakunists,' had in some manner to be solved. Marx and Engels did not wish to accept a re-election to the General Council of the Association, whose seat was then at London. A way out of the difficulty was to transfer the seat of the General Council to New York, for the year 1872—73 for a beginning. "This was decided upon subsequently, to the great displeasure of the American members of the International, as they already had their share of 'differences' and did not want to add to them. "There was no other alternative remaining, and so the new General Council assumed its functions in October of 1872. In July, 1876, at a delegated conference which took place in the City of Philadelphia, the General Council was abolished. This, too, was the end of the First International. "German-born workers of New York played a prominent role in the International and in the general working-class movement of that day. ... It may readily be taken for granted that many workingmen, engaged in the class struggle, looked upon the Fire Insurance Society as a thing of small importance. Perhaps some of them even opposed the body as a 'palliative measure.' Added to this, there was much strife within the trade union movement at the time. One can only express surprise that at the termination of the crisis, in the year 1879, the society could boast of a, membership of 547. "For the first fourteen years not a single regularly employed officer had been required. The 'business administration was conducted through several ' office hours,' during a week-day evening. When the membership reached a figure of close to 4,000 during the year 1887 and the insured valuation of these members attained a total of $1,500,000 the business could no longer be transacted 'on the side.' There followed subsequently the employment of a bookkeeper in the year 1887, whose office hours were from 1 to 9 every weekday. These office hours were found very convenient for the membership. "In the month of February, 1874, there took place the first extension of the Society's fi Id of operation, through a motion passed by sympathizing workers. The expansion went , northward—to Morrisania—which is separated from Manhattan proper by the Harlem -River. "Then followed in the order named, as an adjunct to the 'Main Society,' the cities f Hoboken and Jersey City, N. J., who came into the fold inj 1875. Thereafter Steinway, L I. and Long Island City, in 1882; Union Hill, N. J., and East New York, L. I., in 1884-' West Hoboken and Guttenberg, N. J., in, 1887. . '''The first Branch organized was at Paterson, N. J., in 1878. Yonkers, N. Y., followed ttvo years later, and Newark, N. J., joined the ranks in 1881. Then came a period that did not Show many accessions to the list of Branches. The next Branches to join were New Haven, Conn., and Elizabeth, N. J., in the year 1889. "Paterson, N. J., was visited by a. disastrous fire in February, 1902. Our Organization had to pay $11,217.89 to members. "When, in April of 1905, San Francisco was almost destroyed through an earthquake and subsequent fire, we had to pay members $19,825 for fire losses. "A year later, Chelsea, Mass., suffered a huge fire loss, and our Organization was involved for the sum of $6,280. "In every one of these three instances the indemnities due our members were Bent on through specially delegated representatives of our Society, and the losses were paid immediately. The privately controlled Fire Insurance Companies never display the same degree of promptness in making settlements for losses. "The office staff now consists of the Financial Secretary, the Assistant Financial Secretary and other assistants, as occasion demands. The Financial Secretary is at the head of the office. "The administration of the Society is conducted by the Board of Management, to whom the executives of the Branch Offices are subordinated. The assets of the Society are administered by the Board of Management and the Board of Trustees. The Financial Secretary together with the two controllers function as .the Executive Committee. "At time of initiation members must pay $1.00 for every $100 of insurance taken out. This dollar is applied to the Guarantee Fund. This deposit of $1.00 per $100 of the sum insured by the member is returned, in case he wishes to decrease the amount of his insurance. The same thing takes place in case a member withdraws or when he loses his membership. . . . "Everyone who is insured, at the same time becomes a member of the Organization. He now has the right and it is his duty to inform himself about our method of conducting the business. The memibers are duly informed as to where the funds come from and to what purpose they are applied. Then, too, only sufficient officers are employed as are absolutely needed for the transaction of the business. No fat salaries go to 'presidents' or other high dignitaries. "There are furthermore no dividends to be paid to capitalists. The Guarantee Fund— which is the capital of our Organization—is paid in by the members themselves. The interest accruing from this fund goes toward paying most of the administration costs." The last page of the report contains a detailed statement of membership, insured value, number of fires, fire losses paid for each of the entire fifty years. It is an impressive tabulation. How THEY STAND TO-DAY Since the Society was founded the membership has increased each year, without a single exception. At the beginning of 1927 it is approximately 47,000, and the insured value is approximately $47,000,000. As each member has on deposit with the Society $1 for each $100 of insurance carried on his furniture, this Guarantee Fund is now $470,000. No interest is paid members on this deposit; therefore the entire income from investment of the Fund can be used for overhead expenses of the organization; and to-day such interest carries practically all the office and salaries. This is the reason annual assessment against the members can be kept so low (10 cents per hundred of insurance for several years past). In fact, there have been several years when such assessments were passed entirely. There are branches in 52 cities throughout the country. Many of these are in New York State, but there are others in New Jersey, Connecticut, Pennsyl vania, Illinois, California, Ohio, Minnesota, Maryland, Missouri, Rhode Island, 44 CO-OPERATION CO-OPERATION 45 Wisconsin, and Washington. The insurance companies in Massachusetts suc ceeded several years ago in forcing the Insurance Commissioner of that state to bring such pressure to bear upon the Massachusetts branches that they were compelled to sever their relations with the Society and form the '' Massachusetts Workingmen's Aid Association," which, however, still retains the closest bonds of sympathy with the parent organization. Almost one-half of the entire mem bership of the Society is in the New York branch. THE FORM OF ORGANIZATION The Society has no president. N. Marquer is Financial Secretary and Executive in charge. He, with the two controllers Chris Blom and Gottlieb Mayer, constitute the Executive Committee. There is also a Eecording Secretary, and Investigation Committee of six additional directors, and several special investigators appointed from time to time by the Executive Committee. Secre taries of branches in other cities are elected by local membership meetings, but paid by the national office. The local branches have to turn the entire assessment of 10 dents per $100 over to the national office; therefore they must charge an additional local tax to cover local overhead. This additional tax runs all the way from 1 to 2% cents, depending upon conditions. The local secretary's salary is graduated according to the membership in his branch. New Hampshire had a branch of the Society, but the local Insurance Com missioner closed it up. To-day the one branch in Minnesota is threatened with the same action. How NEW MEMBERS ARE ADMITTED New branches are formed from time to time, whenever a group of 30 can organize one. There must, however, be a minimum of 30 persons ready to organize, and they must elect officers who are responsible and acceptable to the national Executive. In years passed, thousands of individuals have written to the New York office from all over the country with a view to becoming members; but all such individual applications have been refused. The Society c,an function only through local branches in which there are officers charged with the work of investigating every applicant for insurance on his household goods. Private companies carrying this kind of insurance charge all the way from $1.66 per $1,000 up to $22 per $1,000—even in cities where fire protection is adequate. None of them take mem'bers from all kinds of districts at a flat basic rate, as does the Workmen's, giving the same service to the poorly paid worker in the slum territories as is given the aristocratic building trades mechanic who lives in the new apartment house in the residential district. With the one exception that risks cannot be taken in rural areas where there is no water service and fire department, the Workmen's Society is ready to organize branches anywhere provided the state laws do not interfere. The Financial Eeport of the Society provides some interesting reading. In addition to the Guarantee Fund of $470,000, there is a Eeserve Fund of $100,000. Considerably more than $400,000 is invested in mortgage, municipal or Liberty Bonds with the result that nearly $25,000 comes in from interest. Vital Issues WHERE THE TEEASUEE IS, THEEE IS THE HEART The capital of the United States is said to be Washington. But there is a super-capital located in the center wher ever business is controlled. This would be a silly country if it were governed by politicians. It is governed by the busi ness men—the people who control the economic affairs. Any other sort of con trol would be unnatural—and impos sible. The thing that people are interested in is in getting a livelihood—food, hous ing, clothing, and some leisure with means to do what they want to do. That is the big enterprise. Whatever provides the man's job, whatever gives him his wages, whatever pays him the profit or salary that gives him life, possesses the control and is the influence that domi nates. A few idealists and strong indi viduals are the exceptions. The voter is not the person who con trols society. Society is controlled by the people who have the greatest influ ence in the economic affairs of society. A natural process of evolution has set aside the power of the political ballot, until now in the great industrial coun tries it is practically abrogated. It is a pass in the air. Some stubborn souls still go to the polls and vote; the dis illusioned play golf or hoe in their gar dens on election day. They know the futility of trying to make the political tail wag the economic dog. The real voting is done in the stock holders' meet ing and in the Board of Directors' room where the affairs of commerce and fin ance are taken care of. A President of the United States is not the President of the Democrats or of the Republicans; he is the President of the economic interests—and that is precisely what he should be. There is no single- tax president nor socialist president be cause these people are not the dominant influence in the economic affairs of the country. Should either of them ever become dominant, the mere matter of having a socialist or single-tax president would be quite secondary or even imma terial. The political life is but the shadow of the economic life. Those forces in any community which control the economic affairs control the politics. If they do not, they soon will; or they are destined to lose their eco nomic control. The political mechanism has become a mechanism by which the dominant economic forces express their dominance. The ownership of the property, the power over the credit, and the control of industry are the forces which govern society. Let the present fiscal system break down, let commerce fail to function, let capital lose its power to give labor a living, let panic or chaos come upon the scene, and then Labor or some other cen ter of organization will become the domi nant force in the economic life. This happened in England, and the Labor Government came into political power; but not until the preceding things had come to pass. If we think of Wall Street as the cen ter of business life, we do not need to think that it will always remain circum scribed and limited to its narrow domain. It can spread out until it extends to all of the streets in the country, the high ways and byways, and even the path from the house to the barn and over the hill to the neighbors. To spread out the economic control is the important task in this fair country. It will be done only when the people learn how to carry on their economic affairs, for themselves, for their own service. J. P. W. 46 CO-OPERATION CAN WE DEMOCRATIZE CAPITAIISM? The press of the country has lately spread such an enormous amount of propaganda regarding the democratic distribution of stock in corporations that many of our people who are normally very intelligent, are beginning to show signs of conversion. Professor Carver of Harvard is merely one of the more widely known of these propagan dists for capitalism; there are a great many lesser individuals who are show ing us that the control of steel, oil, coal, textiles, railroads, public service corpo rations and other huge interests is being so widely distributed to the workers and consumers that the millionaires will soon be forced into productive employment. In view of these facts the recent article by Lewis Corey in the New Republic is most illuminating. Mr. Corey digs out a lot of very interesting figures which show that in spite of the wide distribu tion of certain kinds of stock, on which huge profits are no longer to be realized, the actual income from stocks and bonds going to the wealthy is steadily mount ing higher and higher. In 1924, for instance, the average income of all folks who are getting more than $5,000 a year, was much larger than it was in 1916 or 1921 and the number of these people increased 250 per cent. Even in , the class of people who get from $3,000 ' to $5,000 a year the increase in the num ber of individuals was nearly 300,000 between 1920 and 1924. The following facts are even more in teresting: Recipients of incomes be tween three and five thousand dollars actually decreased between 1923 and 1924. Recipients of incomes between $5,000 and $25,000 increased 7 per cent. Recipients of incomes greater than $25,000 increased 37 per cent. In other words, the richer you are, the faster your wealth grows. In 1921 only 21 individuals had an income above one million dollars. In 1922 there were 67 of them. In 1923 and in 1924, 74 men and women took in $1,000,000 a year or more. Another interesting table compiled by Mr. Corey is the following: APPROXIMATE DIVISION OF THE NATIONAL INCOME (1924) CO-OPERATION 47 Income or class group Wage-earners Farmers Non-wage-earners : Below $3.,000 $3,000-$ 5,000 $5,000-$20,000 Above $20,000 Class or Per cent group of national income income $22,219,000,000 39.5 6,096,000,000 11.9 9,337,000,000 16.6 7,312,000,000 13.0 5,906,000,000 10.5 4,781,000,000 8.5 $56,250,000,000 100.0 We need more of this kind of study to offset the propaganda of those who try to show us that the capitalist form of business makes for democracy. People of good common sense know that capital ism does not promote democracy any more than militarism promotes peace. A "CORRECTION WITH OUR APOLOGY Under the heading "SOO AND NEW: THEY'RE RUNNING NECK AND NECK" in January CO-OPERATION an article appeared in which the socie ties at Dillonvale, Ohio, and at Sault Ste. Marie, Michigan, were held up as the two largest store co-operatives in the country. A protest has since then come in from the Co-operative Trading Company of Waukegan, Illinois, showing that sales there for the first half of 1926 measured up to sales at the other two towns. In fact, Waukegan was $275 ahead of Soo and $102 behind Dillonvale. In point of membership, Waukegan outranked both its competitors, for it had 1,040 shareholders at the end of June. Therefore the editors of CO-OPEEATION owe the co-operators at Waukegan an apology for neglecting them in this com parison. There were really three socie ties instead of two which should have been included in this comparative state ment. Sales for the entire year 1926 have now been compiled by all three organizations and the results are to be found on another page of this issue. C. L. Lecturing the West By J. P. W. I have an idea that things in this country are going to be done largely by people who have trained themselves to do things. The economic life of the country will be carried on by those who know about production and distribution of the things the people want. In all of this business are two kinds of people: those who devise plans and give orders, and those who take orders and do the work that is given them to do. In the colleges are young people who are training themselves with the hope of being in the first class. Most of them will get into the second class eventually. Still a considerable proportion of people who are destined to guide the economic affairs of this country in the future are now in the colleges, and they are getting a training for that purpose. The western colleges are filled with boys and girls who want to better their station in life. They want an education for the simple and practical reason that it will help them to get on in the world. Inasmuch as the world which their elders have made for them offers them the best rewards by engaging in busi ness and trade, most of them are prepar ing themselves for business. Anybody who thinks that youth should prepare itself to enter into idealistic undertak ings with the uncertain prospect of having no roof over its head and the certain prospect of an empty stomach, underestimates the mind of youth. Still if the college student is shown that an idealistic scheme will work, and will provide him with a decent living, he is for it. During the month of January I lec tured among the colleges of the West. I described to the students three methods of carrying on business: the profit method, the state or socialist method, and the co-operative method. I used no propaganda whatever, but attempted as fairly as possible to set forth the peculiar character of each of these forms of business, giving especial attention to the co-operative method. To the credit of college students, it can be said that they have a keen scent for the odor of propaganda. They like facts and impartial discussion of facts. But let a bias for any proposition ap pear, and they develop an attitude of hostility to the proposition. I spent about a day in each college giving usually three lectures. Commonly a lecture to a class in economics, then to a combination of classes in social and economic problems, and then to a group of advanced students specializing in economics, or post-graduate students working for their doctor's degree. Often several members of the faculty were present. Sometimes special lectures were called for before "other groups. Whenever possible the lecture was fol lowed by a question period. Trust college students to ask ques tions that are worth while. A lecture before most any other group brings out the questions that do nothing but ex hibit the particular superstition of the questioner. College students want information. At the University of Arizona, at Tucson, this is about the way a day goes. Professor Brown called for me at 8:30 and took me to the University. I lectured from 8:45 to 12:30 before three successive classes. A pretty good morn ing 's work. Lunch at Professor Brown's home. Dinner in the evening at the home of Professor Mez. A nice party. Next day at Las Crusas, New Mexico. The College of Agriculture and Mechani cal Arts of the State University. Dean A. P. Taylor took me to the lecture room where I had two economics classes to gether from 10 to 11 in the morning. At 111 spoke before the weekly assembly of the college—all of the students, the faculty on the platform, a formal affair. Good music. Then President Kent took me to the luncheon of the Rotary Club of Las Crusas. The Rotarians opened 48 CO-OPERATION CO-OPERATION 49 with prayer and singing the national anthem. They liked what I said so much and seemed so appreciative that I have not yet figured out whether they are more intelligent than I have supposed, or whether they did not understand what I was saying. Then at 2 o'clock back to the College for a lecture before an economics class, and finally at 3:30 the bus to El Paso, Texas. From Juarez, Mexico, to Albuquerque. Nine hours by sleeper. For some reason or other the State University there did not want me. They politely wrote that their schedule made it impossible to ar range for any extra lectures; but whether it was the subject or the speaker that they were afraid of I have not been interested to learn. I had two hours there and drove out to the Uni versity, but I did not attempt to force myself upon them, and I shall never know what I missed. Denver, Colorado, in due time. The University of Denver, a Methodist insti tution, where students actually have ac cess to the very learning that would demethodize them. At 10 I lectured for the classes of Professor J. H. Cover and at 11 for Professor P. S. Tracy. Then without time for lunch I drove to Boulder—sixty miles—to lecture at the University of Colorado at 3 o'clock. There were the snow covered Rockies. The next day was Saturday. Having talked with President Harper of the University of Denver, whose arm was in a sling as a result of a ski misslip, through the goodness of his secretary I was put in touch with the President of the Rocky Mountain Club. He fitted me with complete ski equipment. We enjoyed together a gorgeous day, climb ing from 8,000 feet above sea level to 10,60'0 feet between Idaho Springs and Echo Lake. It took us two and a half hours to go up the trail and fifteen minutes to come down. These are de lights arising out of interest in both the Co-operative Movement and the snow. At Lawrence, Kansas, is the State University. One arriving there on Sun day afternoon wonders where the Uni versity is. Professor Seba Eldridge came down and told me all about it. Break fast Monday morning at his house at 7:15 and a lecture before his class in economics at 8:30. Then at 11:30 two more classes together—as lively a lot of students as one would want to meet—no end of searching questions. Finally a luncheon group at 1 o'clock. The next morning Omaha, Nebraska, to address the Farmers' Union at the opening session of their annual conven tion. I have spoken to farmers' groups before and found that I was looking into the blank faces of people who had no idea of what co-operation meant. But these Nebraska farmers, to my great satisfaction, I saw at once knew what I was talking about. They had the in tellectual interest of university students, backed up by the higher learning that comes with hard knocks. I do not ask for more intelligent or appreciative listeners than those twelve hundred farmers. Their culture is largely due to the work of L. S. Herron, the editor of the Nebraska Union Farmer, who is teaching them fundamental principles in economics such as no other group of farmers east of the Rocky Mountains has ever had. They let me talk for an hour and a quarter, and I stopped while the stopping was still good. Again back to the academic shades. A lecture at the University of Omaha and one at Creighton College. Next day came the University of Chi cago. A nice dinner group arranged by Professor Paul Douglas at the Quad rangle Club with a few members of the faculty and post-graduate students working for their Ph.D.'s in economics. One professor reminded me that my wife had once bailed him out when they both had been arrested in New York for street speaking, in the campaign to or ganize the retail clerks many years ago. He suggested making such an experience a prerequisite for the doctor's degree in economics. The next morning two lectures at Chicago University before the classes of Professor Montague from 9 to 11. Then a meeting at Waukegan the same evening for the Waukegan Co-operative Society. Brass band, earnest co-opera tors and a few Communists asking their familiar questions and answering them- elves with their Marxian arguments, to give variety to the scene. The Bloomington Co-operative So ciety's Decennial Celebration and banquet the next night. A lovely co operative party. Good dinner. Inter ested people. A successful society. In November I had lectured before three different groups at the University of Minnesota while the Fifth Congress of the League was in session at Minne apolis. The western college students are dif ferent from the eastern students. They are obviously less affluent. On the whole the western students seem more earnestly interested in getting the most possible to be had out of their oppor tunities for education. There is less dilettantism than in the East. When you talk with a tall Scandinavian youth, whose family lives on a farm twenty miles from a railroad, and who is one of six boys, all of whom have gone through the University, you feel that you are in contact with a man who has real interest in education. In New Mexico I saw a youth who had walked sixty miles to enter the Uni versity; he would not accept the presi dent's statement that the classes were full—he was willing to stand against the back wall or sit on the floor; he was not discouraged when told that there was no more dormitory room—he had been a cowboy and was accustomed to sleeping out doors; all he asked was the privilege of sleeping on the ground; they simply had to take him; and he is making good. The interesting thing about these stu dents is that they are open minded. If one abstains from using the lingo of propaganda, and gives them straight facts, they are ready for anything. Their questions are always intelligent, and often searching. It will be a good thing for this country to have plenty of educated people who understand co-operation. Some of these students in the course of time will find their way into the Co-operative Move ment, where trained minds with a back ground of culture are very much needed. THE LLANO COLONY AGAIN It is a long time since we have both ered our readers with the "Llano Co operative Colony," of Newllano, Louisi ana. This is the organization run by Geo. T. Pickett, and incorporated as " Llano Del Rio Company of Nevada." It has always called itself "co-opera tive," but co-operative it never was. We have from time to time published information of this organization to warn well-meaning people as to its character. The futility of telling the truth about spurious "co-operatives" is constantly borne in upon us. People seem not to like the truth. If they are bent upon being humbugged nothing seems to stop them. Barnum was right. We have a large amount of informa tion showing the character of this 'Colony," and this information has been available for those who wished to Profit by it. Still, people have criticized us and stormed at us for our refusal to endorse this scheme. After reviling us and swallowing the Llano propaganda, some have turned their backs upon our advice and entered the colony. Then later on they have come back and told us that we were right but that we had not made protestations strong enough. A well known teacher of economics went through this experience. He came out of Llano with stronger words of condemnation than we had ever used. A prominent woman lecturer gave ad dresses and wrote about the Colony and carried on propaganda for it, criticising The Co-operative League for its un sympathetic attitude toward Llano. Then she went and lived at Llano a while, learned the facts, and left dis illusioned. But after these experiences 50 CO-OPERATION CO-OPERATION 51 people fail to publish words of warning for the benefit of others. In the meantime men and women have continued to sink their money in this enterprise. We have said that it can keep going so long as simple people can be found to put in capital. As soon as this stops, the enterprise will go bankrupt or it will fall into private hands as a ripe plum, and the "experiment" will be over. Our sympathy must go to the old people who have put in the savings of their life-time and seen them lost. Many of them had dreams of an idealistic colony for their declining years. The experience of some of them has been sad, indeed. There is the case of an old couple who had saved and saved, and after reading about Llano and hearing reputable people speak about it, decided to go there to spend their last days in this "refuge from the wicked world." They were not even surprised that Llano advised them first to send on their money before they came, rather than to bring it with them, "so that a cottage could be built and made ready to receive them." Finally with hearts full of hope they made the journey to find that the "cottage" was a slab shack, a relic of the old lumber camp days. They could not live in it. Finally with sad hearts they too went away—leaving behind all of their savings. The difficulty has always been that people who have put in their money hope that if enough other people can be induced to do the same, the scheme may pull through and their money will not be lost. For this reason many, believing that failure was written on the face of it, have boomed Llano and urged others to put in their money. A few courageous souls have been fair enough to say "good-bye" to what they have invested in the Colony, and have warned others. Some of these have felt their sense of duty so keenly that they have followed the Llano lecturers, gotten up in meetings, and frankly stated that the thing is a fraud. Now a few of them have applied to the courts to have the Llano Colony placed in the hands of a receiver. But when it is all over and the em battled colonists have gone back to the flesh pots of the world, there will still be some who will think fondly and lov ingly of the hand that took their money —so gently, so piously and with such sweet words were they touched. MORE ABOUT CREDIT UNIONS By GEORGE M. SPECTOR, President, Headgear Workers' Credit Union, New "York City. I cannot resist the temptation of jot ting down my opinion as to which Credit Union is truly co-operative. Agreeing with you that there are three types of Credit Unions that are co-opera tive, there is only one type that enters the field of finances aiming to be of service to its shareholders instead of making profits for a few. Such can be found only amongst Labor Credit Unions. Without casting reflection upon those Credit Unions mentioned in your Febru ary issue, whose chief object is to extend credit to petty merchants, I wish to state regretfully that their principal aim is "BUSINESS." Any bystander present at one of their meetings will observe that their order of business is conducted in the spirit of a private enterprise. The principles of co-operation do not enter the minds of the members and the leaders are either ignorant or inten tionally refrain from propagating the advantages of co-operation. Such Credit Unions are finally converted into Finance Corporations or Loan Associations. In such organizations the principles of democracy and co-operation give way to the few who financially and otherwise control the organization. Such was the case with one of the largest Credit Unions in Brooklyn and towards this end is drifting an equally large Credit Union in the Bronx. The report of the State Superintend ent of Banks contains the statement that Credit Unions are applying for charters to do business as Finance Corporations and Loan Associations, a la Morris Plan. This fact greatly substantiates my point of view on such Credit Unions. The second phase elaborated upon in this issue is where some large business houses, in order to keep their employees contented, create Credit Unions. Usually the chief executives of these firms look upon these organizations as a personal achievement and with a spirit of toler ance. I am sure you are aware that in all such organizations these executives have influential control and should any abnormality arise in their business, these Credit Unions are bound to collapse. The true "Co-operative Credit Union" can exist only amongst workers, organ ized of their own volition. It is a fact that whenever a Labor Credit Union meets with success, such an organization attempts to spread its activities in other fields along co-operative lines. Also the officers of a Labor Credit Union, who take cognizance of the power of "unity," are in principle co-operators. It is they who create an atmosphere in these organ izations, in which the development of the theories of co-operation, can best take place. These are the only Credit Unions that are co-operative in principle and democratic in structure and deserve to be called the "truly Co-operative Credit Union.'' These institutions are bound, eventually, to be the leading factors in the Co-operative Movement of America. News and Comment A VISITOR FROM SWEDEN The League office and several of the co-operators of Greater New York had an opportunity to become well acquainted with one of the executives in the Swed ish Co-operative Movement, and to learn a great deal about the movement itself when Mr. Rudolph Molin recently spent several weeks in New York City. Mr. Molin is not only intimately acquainted with the educational and propaganda side of the movement, but is also closely in touch with the productive works of the Kooperativa Forbundet, with its dis tributive stores, its insurance depart ments, and its accounting and auditing work. The following items placed here at random are some of the more inter esting facts which he related to one or more of his attentive audiences. Mr. Molin spent more than two months in this country seeking a market for some of the artistic productions of the Swedish people, particularly glass ware. He also made a study of several kinds of machinery and of bookkeeping and control methods practiced by the chain store companies. At the same time he acquainted himself with many of the peculiar difficulties which beset the co-operative movement in the United otates. The Swedish wholesale maintains sev eral subsidiary companies for its indus tries. One of the most interesting of these is the margarine works and the techno-chemiteal factory at Malmo, where vitamines are segregated for use in the margarine. The artificial treat ment of this food with vitamines makes it quite as nourishing as butter. The co-operators have even made agreements with the private manufacturers of mar garine throughout Sweden whereby the latter, under contract, also treat their margarine with vitamines. Thus the population of Sweden to-day has the unique advantage of being able to pro cure a butter substitute which has as much food value as butter and at one- half the price; and this development is due to the co-operators. Another interesting subsidiary is that for the manufacture of glassware and pottery under the direction of some of the finest artists in Sweden, who en deavor to preserve the artistic culture of the old hand-made glassware of the peasants. The flour mills run by the wholesale are operated three shifts a day and easily out-distance their capitalist rivals III 52 CO-OPERATION CO-OPERATION 53 of the flour trust which now take second place in the flour trade of the country. Other subsidiaries are for the opera tion of the corn mills, shoe factory, a swine slaughter house and two insurance companies. The Swedish movement, particularly in the city of Stockholm has concen trated most of its efforts on the development of stores. So far there is comparatively little done in the direc tion of coal or milk distribution, or the handling of large quantities of clothing, household furniture and similar lines. In the larger cities in particular the co-operators wish to get a virtual monopoly of the store business before they branch out into other undertakings. The organization of the co-operatives in Sweden is modelled on the German plan, where the membership is very large. Meetings are held in various districts and delegates are elected to attend a central membership meeting. This central meeting elects a large supervisory committee and also a board of directors selected from a list of nominees presented by the supervisory committee. The board of directors is usually composed of only two, three or four men. The control of the business proper is three-fold. One director is responsible for supervision of the bookkeeping and accounting of the store. The second is responsible for the fixtures and stocks of goods, the third supervises the purchases made by the manager. If the manager buys any thing from private wholesalers, he must show this member of the board of direc tors that he was justified in buying out side the co-operative wholesale. Thus every local society is closely watched so that it will not play false with its own C. W. S. A fire insurance society was started nearly twenty years ago and for several years insured household furniture only. Life insurance was undertaken in 1918 when the C. W. S. took over an in dependent life insurance company which was in difficulties, and made it a depart ment of the co-operative movement. In the local co-operative societies every member is required to do a certain minimum amount of business with his store or his membership may be can celled. Years ago the success of a store depended almost entirely upon the efficiency and interest of the manager, and thus the entire movement was at the mercy of store managers. To-day the administration of local stores has been so well systematized that managers come and go with very little effect upon the local business. Education of co-operative employees plays an important part in the work of the Kooperativa Forbundet. It is now a policy of the organization that every new employee must for several weeks attend a regular course in the principles of co-operation. This school is given on co-operative time and the new employees leave their work for one hour each morning to attend classes. The corre spondence school, administered from headquarters outside the city of Stock holm, reaches thousands of co-operators throughout the country. Until recently the movement has had to take many of its executives from private business and in some instances has had to pay fancy salaries. During the last few years most of the executives have been taken directly from the move ment itself. Swedish co-operation is now expanding under its own momen tum and training its own leaders. Each year delegations of a few of the board members of the Ko-operativa Forbundet are sent to the various con gresses of other national unions through out Europe. The expense of these international trips often runs as high as 50,000 crowns per year (a crown is 27c). The Swedish co-operators believe in paying liberally to promote interna tional co-operative friendships. The leaders of the Swedish movement claim that the principle of absolute neutrality within the movement as re gards any entangling alliance with either religious, -social or political movements has been developed to a higher point than in any other country; and that this accounts in no small measure for the remarkable success the movement has made among all groups of people. COMPARATIVE FIGURES FOR A FEW OF THE CO-OPERATIVES It has been the custom for many years for CO-OPERATION to carry brief articles of one or two paragraphs each, describing the position of many of the foremost consumers' societies in the country at the end of the fiscal year. But these reports now become so numerous that this more extended treatment is impossible. Therefore, the following birdseye view of how several of these societies stand at the close of 1926, compared with corresponding figures for 1925, where such are available. The editor does not guarantee that all these figures are perfectly accurate. Fanners Union State Exchange, Omaha, Neb. (Wholesale) Co-operative Central Exchange, Superior, Wis. (Wholesale) Co-operative Bakery of Browns ville, Brooklyn, N. Y. Bloomington Co-operative Soc. Bloomington, Illinois New Co-operative Company, Dillonvale, Ohio Soo Co-operative Mercantile Ass'n, 'Sault Ste Marie, Mich. Co-operative Trading Co. Waukegan, Illinois Cloquet Co-op Society, • Cloquet, Minn. Consumers CO'-op. Services New York City Finnish Co-op. Trading Ass'n. Brooklyn, N. Y. United Co-op Society, Maynard, Mass. United Co-op Society, Fitchburg, Mass. United Co-op. Society Norwood, Mass. Utica Co-operative Society Utica, N. Y. Workers Co-operative Union Stafford 'Springs, Conn. Year '25 '26 '25 '26 '25 '26 '25 '26 '25 '26 '25 '26 '25 '26 '25 '26 '25 '26 '25 '26 '25 '26 '25 '26 '25 '26 '25 '26 '25 '26 No. of members 7,000 7,000 10,000 11,000 1,400 1,000 400 400 400 456 490 640 876 1,100 820 965 2,113 2,554 1,832 l,fliOO 622 630 580 680 190 330 173 131 Tear's income $1,521,311 1,612,024 835,529 1,048,293 356,917 381,843 195,447 169,163 499,698 542,854 551,367 590,707 497,205 555,825 429,931 477,408 420,247 446,915 356,150 391,574 327,035 332,971 285,381 324,203 120,771 123,286 124,864 111,888 64,365 62,153 Net gain $36,663 34,222 8,869 11,648 Loss 488 Gain 5,794 5,172 7,836 ? 36,583 30,541 38,239 21,658 16,207 20,139 26,434 22,347 6,382 16,121 15,405 11,174 11,S<36 12,695 1,761 2,191 4,424 1,904 2,215 679 Capital paid in* ? $332,087 27,279 34,200 9,190 8,937 28,418 27,404 17,900 '30,880 40,090 45,683 37,450 39,000 47,710 34,098 42,434 43,500 43',515 24,720 25,285 18,670 18,619 5,'3'55 4,785 29,034 29,808 5,185 4,840 Eeserve fund** $20,751 18,479 6,850 8,501 Def . 1,646 2,598 15,335 22,8i98 85,300 92,957 28,362 28,9(27 7,012 4,303 6,303 65,109 72,633 23,172 25,600 16,690 19,899 19,065 25,980 2,428 2,811 4,760 5,868 3,742 4,549 * Share capital only. Many societies have large amounts of loan capital in addition. ** Before surplus from current year has been added. NEW EDUCATIONAL DIRECTOR FOR BROOKLYN The Finnish Co-operative Trading As sociation of Brooklyn has recently en gaged the services of Henry Askeli as their Education Director. Mr. Askeli has done educational and publicity work for various Finnish labor and political organization for several years. During recent years he has been working in Chicago and for the past few months in Worcester, Mass. CO-OPEEATION 55 54 CO-OPERATION CORRESPONDENCE SCHOOL IN CO-OPERATION The five courses in Co-operation to be given by correspondence from the national office of The Co-operative League are now ready and a few stu dents are taking the lessons. There is a simple elementary course in Bookkeeping and a more extended and elaborate course in Bookkeeping and Accounting. There is a course in Elementary Eng lish for those who received their educa tion in other countries and have never had a chance to study English; and there is a course in Elementary Arith metic for those who had to leave school at an early age. There is also a course in the History and Principles of Consumers' Co-opera tion based on the new edition of " Co operative Democracy," just revised by Dr. J. P. Warbasse. These courses are being given under the personal supervision of Colston E. Warne, Professor of Economics at the University of Pittsburgh. Mr. Warne is not only an experienced research stu dent and worker in the Movement, but is the author of one of the most detailed studies of co-operation ever written in this country. His book, " Consumers Co-operative Movement in Illinois,'' was published last year. HEADGEAR WORKERS CREDIT UNION DIRECTORS In February issue of CO-OPEEATION appeared a picture of the President of the Headgear Workers Credit Union, George Specter, with a statement of the good work he has done. Mention should also have been made of the unusual serv ice contributed to the success of the organization by other members of the Board. A complete roster of Directors is not available, but it includes such men as Max Zuckerman, Secretary for many years of the Cloth Hat, Cap and Milli nery Workers Union; Max Zaritsky, President of the same organization for the past 15 years; J. M. Budish, Editor of the paper of that union; Joseph Menendez, a director of the United Hat- ters Union, and others equally well known in the labor movement of the country. CENTRAL EXCHANGE RINGS THE BELL The Co-operative Central Exchange set out at the beginning of 1926 with the goal of $1,000,000. The end of the year sees the mark of $1,048,293 total sales attained, an increase of 25^2 Per cent over sales of 1925. Of this, $1,016,147 was sales to member stores, and only $32,145 to non-member stores. This figure puts the Central Exchange second on the list of wholesales in this country which are organized to sell to member co-operative societies and which deal largely in household necessities. There are larger central purchasing associa tions buying only supplies needed by the farmers in their business, but they are not strictly consumers' co-operatives. The Farmers' Union State Exchange of Nebraska and the Co-operative Central Exchange are chiefly consumers' co-op erative wholesales. Net gain from trading for the year was $14,599. Ninety-seven co-operative stores made purchases during the year. TWO CO-OPERATIVE TRAINING SCHOOLS April 18 marks the opening of two co-operative training schools, one at Minneapolis and the other at Brooklyn, N. Y. Each will run for six weeks under the supervision of experienced executives in the Co-operative Move ment who have run such schools in pre vious years. Mr. H. V. Nurmi and Mr. V. S. Alanne have previously worked together in the Western schools; this year the former is in charge of the Eastern school and the latter in charge of the school in Minnesota. The courses given will keep the stu dents hustling from nine in the morning until late in the afternoon and often in the evening. Special trips will be ar ranged to neighboring co-operative en terprises and many special lecturers will be called in to cover selected topics. The greater part of the instruction will center around bookkeeping, principles and aims of consumers co-operation and nroblems of organization, administration and management of stores. There are thousands of co-operative employees throughout the country, or young men and women who would like to be such employees, for whom these schools,are organized. Here they get not only technical and theoretical in struction, but they have a remarkable opportunity to meet some of the fore most executives in the movement, to get acquainted with a fine crowd of other workers, to visit some of the most suc cessful societies in the United States, and to get the feel of what Co-operation is into their very bones. THE FOREMOST CO-OP WHOLESALE IN THE U. S. The position of leadership among con sumers' co-operative wholesales in the country, at least as regards turnover, is held by the Farmers' Union State Ex change of Omaha, Nebraska. Sales for the year 1926 were $1,512,024, as com pared with $1,421,311 in 1925. Total surplus on this business last year was $34,222, of which $26,754 was returned to shareholders as an 8 per cent dividend on stock. Current assets are $303,243 as against current liabilities of $43,925, an indica tion of the best kind of health. The paid in capital is $332,087, and the reserve fund $18,479. District Leagues NORTHERN STATES LEAGUE Kecent meetings of the Board have approved plans for the establishment of an Auditing Department, rules for which were drawn up by a special sub committee consisting of H. V. Nurmi, 0. J. Arness and V. S. Alanne. Full endorsement has also been given to the concerted efforts to be made by the national office and district leagues looking toward a campaign to win for consumers' co-operatives complete ex emption from income tax. Moral and financial support for this campaign have already begun to come in from local societies in the territory. The Training School is to open on April 18th at Minneapolis and is to run for at least six weeks. Preparatory correspondence courses will be given from the national office, and every stu dent will we required to take these ad vance courses. Tuition fee will be $25. The principal instructors will be V. S. Alanne and 0. J. Arness. Treasurer's report showed income of $5,197.54 and expenditures of $5,069.21 for the last half of the fiscal year. EASTERN STATES LEAGUE The committee in charge of Training bchool reports that most of the neces sary money has been subscribed, and the campaign is now on to get students. The school will open on the 18th of April, same date as that on which Northern School opens. Cedric Long and H. V. Nurmi will be the two head instructors, the latter being the Director of the School. Services of other local co-opera tors and leaders in allied movements will be used also. Such men as A. J. Muste (Dean of Brookwood Labor College), Stuart Chase, Solon DeLeon (Director Labor Eesearch Department of Band School), Harry Laidler (Director of League for Industrial Democracy), are among the latter. The store and restaurant societies of Greater New York have been studying the question of establishing a Central Purchasing Agency. The three housing societies in the Bronx which are opening stores will throw their entire business to this central agency. The special com mittee on organization has most of the general provisions of the new corpora tion already drawn up and will soon apply for incorporation at Albany. In February, the Central States League launched its four page educa tional paper, the Central States Co- operator. The first number indicates a high class of co-operative journalism under the editorship of A. W. Warinner. It carries all of the local news and every co-operator in the Central States will want to subscribe to it. 58 CO-OPERATION ,'l lems of employment and migration as they affect the societies, the difficulties encountered when trade union and co operative try to sleep in the same bed, competition of chain stores and other private business, the over-emphasis and the under-emphasis of propaganda. The Executive Staff of The Co-opera tive League recommends this book very highly and particularly to those students of the movement who have read books on history, principles and theory but have not yet delved deeply into the concrete social and financial problems of the local co-operative which is directly engaged in the bitter struggle for existence. C. L. AN EXCELLENT CO-OPERATIVE MARKETING JOURNAL STARTED With December 1926 appeared the first edition of a new monthly in the field of co-operative marketing entitled The Co-operative Marketing Journal. This is, to the best of our knowledge, the first serious attempt made in the United States to publish in the interests of co operative marketing a journal dealing with the larger technical, economic and philosophical aspects of this subject. There have been local publications galore, all of them designed primarily to spread propaganda for specific organ izations. This paper is seriously devot ing itself to many of the fundamental problems that beset all marketing asso ciations. The editors are Walton Peteet and Robin Hood. Some of the most interest ing articles contained in the December and January numbers are as follows: The Growth of Co-operative Law. Co-operatives and Price Control. Management of Co-operative Associa tions. A Quarter Century of Co-operative Development. Agricultural Co-operation a World Movement. Effective Co-operative Publications. Co-operative Purchasing. Among the contributors are such well known experts in the field as E. G. Nourse, 0. B. Jesness, Chris Christensen, R. H. Ellsworth, C. R. Fay, A. V. Swart- hout, and John D. Zink. " GAB " OR " ABILITY " EDITOR: I was greatly interested in the two points made in a recent number of CO-OPERATION, one by J. P. W. that trades unionists at their colleges, seem to be mainly interested in learn ing to "orate" (that is to "sell" their ability to "put it across") ; and the other was C. L. objecting to "resoluting" as a mere emotional exercise. I have long thought of the co-operative move ment as: (1st) The best training school for service. In profiteering business one is trained to lie; to cheat; to defraud. Many people resist this "pull" and stay decent. But the "pull" exists. Many are wrecked by it. In a co-operative community where most of the stores, factories, etc., etc., are co-operative a spirit of service is cultivated. To get getter wages; to get advancement; to win prestige one must SEiEVE. (2d) We will have "poli tics" for many years to come. Co-operation will enable us to "promote" our co-operative employes and officers "on their records" and not elect men for having the gift of gab, for public common ownership requires the same sort of talents as private common ownership. (3d) Co-operation will enable us to get com modities cheaper. This last is, by far, the least of the three benefits, but possibly the most popular. W. H. KAITFMAN, Bellingham, Wash. ARE FARMERS INDEPENDENT? EDITOR.—As lecturer of Trout Lake Grange No. 210 during the past year I wish to say that your magazine has been a liberal educa tion. It proves that the city dweller is as far ahead of the farmer in co-operative buying as he is in selling his labor. Although co-opera tive buying and selling, and lower taxes will help the farmer, they will not remove the fundamental cause of present farm conditions, any more than putting on a new plow point will husk his corn. It will still require co operative intelligent voting. There is not much help for the farmer until he gets the false independence idea out of his head. For selfish purposes politicians fill his head with it, and under its influence he struts and blusters, loudly proclaiming to the world that no one can tell him how to buy, sell and vote. The result is, he does all these things, especially voting, just as big business desires he should. And continues to work fourteen hours a day with nothing for his investment—again, just as big business desires he should. For someone must create wealth. It is a wonder that farm ers do not realize this fact;- trusts cannot make money for themselves, any more than a gambler can by gambling with himself. He must have a victim. The worker, especially the farmer, is the industrial victim of the trusts. If the farmer would stop whining and damning Congress, and try intelligent co-operative vot ing for a change, he would be surprised how quickly the world would respect him, instead of considering him a kind of necessary joke. C. M. CUTTING. CO-OPEEATION 59 NEW CO-OPERATIVE DEMOCRACY Second Edition completely revised by JAMES PETER WARBASSE President of The Co-operative League of the United States of America Member of the Central Committee of the International Co-operative Alliance A Discussion of the Consumers' Co-operative Movement In Its Relation to the Political State, to the Profit System, to Labour, to Agriculture and to the Arts and Sciences "We hope Dr. Warbasse's book will find readers throughout the world" G. J. D. C. Goedhardt, President International Co-operative Alliance MACMILLAN & CO., New York, Publishers ORDER FROM The Co-operative League, 167 West 12th St., New York, U. S. A Price $1 SO The Co-operative Union, Holyoake House, Hanover St., Manchester England" German Edition: Verlagsgesellschaft deutscher Konsumvereine, Strohhause 38 Hamburg, Germany. Price, 6 marks. STUDY CO-OPERATION AT HOME Correspondence Courses prepared and ad ministered by experienced co-operators are now ready Preparatory for entrance to Co-operative Training Schools 1. Elementary English 2. Commercial arithmetic Other introductory courses 1. Bookkeeping for Co-operators 2. Principles and Theory of Co-operation For full -particulars write THE CO-OPERATIVE LEAGUE 167 West lath Street New York City Index for CO-OPEEATION, 1926, sent free on request. The Canadian Co-operator Brantford, Ontario, Canada The organ of the Canadian Co-owra- tive Movement, owned by and con. ducted under the auspices of The Co-operative Union of Canada. Published monthly ?5c per annum "The Co-operative Pyramid Builder" Official Organ of Co-operative Central Exchange is a snappy, live co-operative magazine. Get in line! Subscribe NOW Subscription price 50c a year. CO-OPERATIVE CENTRAL-EXCHANGE Superior, Wis. 60 CO-OPERATION PUBLICATIONS — OF— THE CO-OPERATIVE LEAGUE HISTORICAL Per Copy Period 3. Story of Co-operation .............$ .10 $6.00 7. British Co-operative Movement..... .10 6.00 38. Consumers' Co-operative Movement in U. S., 1926................. .10 6.00 39. Consumers' Co-operative Societies in N. Y. State (Published by Con sumers' League ................ .10 59. Co-operative Movement in Europe.. .05 4.00 64. Progress of Co-operation in United States. ..................... .05 4.00 TECHNICAL 4. How to Start and Run a Rochdale Co-operative Society ............ .10 4.00 5. System of Store Records and Accounts. . . . . . . ............ .50 6. A Model Constitution and By-Laws for a Co-operative Society....... .05 . 2.50 8. Co-operative Education. Duties of Educational Committee Defined... .10 9. How to Start a Co-operative Whole sale ........................ .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-opera tive League ................... .10 29. Credit Union Primer (By Ham and Robinson). .................. .50 43. Co-operative Housing ............. .10 50. A B C of Co-operative Housing.... .10 51. Model Lease for Co-operative Apart ment House ................... .10 MISCELLANEOUS 16. Model Co-op State Law............ .10 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 33. Credit Union and Co-operative Bank .05 13. The Place of Co-operation Among Other Movements .............. .25 34. Co-operative Movement (Yiddish).. .02 1.25 30. " When the Whistle Blew " (Story, by Brace Calvert) .............. .06 65. Reading List on Co-operation....... .10 66. International Directory of Co-opera tive Organizations .............. .35 41. Social Aspects of Farmers' Co-opera tive Marketing (By Benson Y. Landis). .................... .25 42. Co-op Homes for Europe's Homeless .10 53. Real First Aid for the Farmers.... .05 55. A Better World to Live In........ .05 57. How a Consumers' Co-operative Dif fers from Ordinary Business..... .02 .60 60. The " Moral Equivalent " of Jazz... .02 62. Buttons (League Emblem in 3 colors) 54 inch diameter........ 3.00 63. Sign or Transparency of League Em blem. Green and gold, 8 in. diam.. .25 15.00 ONE-PAGE LEAFLETS (One Cent each; 50 Cents per 100; $2.50 per 500; $4.00 per 1,000.) (1) Principles and Aims of The Co-operative League; (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 1; (28) Do You Know About Co-operation in Europe?; (40) Have You a Committee on Education and Recreation?; (44) What Is the Co-operative Move ment?; (45) Schools and Stores; (47) A Man's Right to a Job; (48) Tips to Co-operators; (49) The Way Out; (61) Co-operation Brings Disarmament. MONTHLY PUBLICATIONS CO-OPERATION—(In bundle lots, $7.50 dred). Subscription, per year per hun. area). Subscription, per year..............Ji nn INTERNATIONAL CO-OPERATIVE BULLETIN &&%* BeJ:£.&••••••••• -Per Year- $ud $1.65 if paid by check. BOOKS The following books are recommended as containing the best discussions of the modern Co-operative Move ment. They may be ordered through The League: Bergengren, Roy F.: Co-operative Banking, A Credit Union Book ..................... Blanc, Elsie T.: Co-operative Movement in Russia . . . . . . . ....................... Brightwill, L. R.: Animal *' Co-op " Book—For Children . . . . . . . ..................... Faber, Harald: Co-operation in Danish Agricul ture, 1918 ............................. Flanagan, J. A.: Wholesale Co-operation in Scotland, 1920 ......................... Gebhard, Hannes: Co-operation in Finland, 1916 Gide, C.: Consumers' Co-operative Societies American edition and notes, 1922. Cloth.. Hall, Prof. Fred: Handbook for Members of Co operative Committees ................... Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Paper bound........ Holyoake: Rochdale Pioneers ................ Howe, Fred C.: Denmark, a Co-operative Com monwealth, 1921 ....................... Jessness, O. B.: Co-operative Marketing of Farm Products ......................... Madams, J. P.: The Story Retold............ Mears and Tobriner: Principles and Practices of Co-operative Marketing................ Nicholson, Isa: Our Story................... Oerne, Anders: Co-operative Ideals and Problems Owen, Robert: Autobiography .............. Potter, B.: Co-operative Movement in Great Britain . . . . . . . ....................... Redfern, Percy: The Story of the C. W. S..... Redfern, Percy: The Consumers' Place in So ciety, 1920 ............................. Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918 ........................ Smith-Gordon and O'Brien: Co-operation in Denmark. . . . . . . .................... Smith-Gordon and O'Brien: Co-operation in Many Lands, 1920 ..................... Stolinsky, A.: The Co-operative Movement. (In Yiddish). ............................ Warbasse, J. P.: Co-operative Democracy, 1927.. Warne, C. E.: Consumers Co-operative Move ment in Illinois ........................ Webb, B. and S.: The Consumers' Co-operative Movement, 1921. Board, $2.00; cloth..... Webb, Catherine: Industrial Co-operation, 1917. Woolf, Leonard: Co-operation and the Future of Industry............................ Woolf, L.: Socialism and Co-operation........ Co-operation in Great Britain and Ireland, paper CO-OPERATION, Bound Volumes, 1915 to 1925 inclusive, each ......................... Transactions of Second American Co-operative Congress, 1920 ......................... Transactions of Third American Co-operative Congress, 1922 ......................... Transactions of Fourth American Co-operative Congress, 1924 ......................... Northern States Year Book, 1926. Paper..... The People's Year Book, 1927. Cloth, $1.00; paper bound ........................... $3.00 2.50 .15 2.75 2.00 2.00 2.00 2.00 .60 1.00 2.00 2.50 .50 3.20 .25 1.2S .50 1.00 2.00 1.00 1.00 1.00 1.50 1.00 1.50 3.50 5.00 1.50 1.00 1.50 .25 1.25 1.00 1.00 1.00 .25 .60 (.Ten cents postage should be added for all books.) A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in voluntary 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 Fntered as Second Class matter, December 19, 1917, at the Post Office at New York, N. Y., under the Act of March 3, 1879. Price $1.00 a year. VOL. XIII, No. 4 APRIL, 1927 10 CENTS at" •-s"-.- ..- - Ik'-, • - f s. r "J THE UNITED CO-OPEEATIVE SOCIETY OF MAYNAED has a live group of employees, most of whom appear in this picture. Drivers, clerks, bakers, cooks, office workers, they are the men and women upon whom the members depend to keep the grocery and meat stores, bakery, restaurant, dairy, coal department, furniture store going and growing. Three of the employees were at worls when the photograph was taken, and do not appear here. J " 62 CO-OPERATION United Co-operative Society of Maynard It is the ambition of every genuine co-operator to see his society extend its business until ultimately it supplies virtually all of the needs of its members. It is the custom of capitalist business to extend its operations in the direction which will bring the greatest profits to stockholders. Sometimes this means rapid expansion over a large geographical area, Sometimes it means the organ ization of a vertical trust, such as that of Henry Ford. The purpose of the co-operative movement is to organize around the needs of the consumer members. Therefore, the ideal society is one which supplies not only food and clothing, but housing, credit, insurance, laundry facilities and a host of other services. The United Co-operative Society of Maynard has probably carried its develop ment in this direction further than any other co-operative in the United States. Maynard, Mass., to-day has a population of scarcely eight thousand and twenty years ago was much smaller when a group of Finns, most of whom were employed in the American Woolen Mills, organized a little co-operative store. At the close of the first year of business in December, 1907, sales had aggregated $38,000 and the net gain for twelve months was $1,157. The following year the business decreased to $30,732 and a loss was sustained. At this time there was only $1,600 of capital stock outstanding. From that year onward, however, slight gains were made or at least no heavy losses were recorded. In 1915 the sales were $37,700 with a gain of $1,500 on the business. In 1916 the business nearly doubled, reaching $65,800. It was in this year that both the bakery and the restaurant departments were organized. The results of that wise move showed in 1917 when sales jumped to $148,000 and net gain to $2,400. In 1918 total sales were just short of $200,000 and the gain was $8,000. There was now $6,000 of paid-in capital. During 1919 and 1920, six or eight of the societies in Massachusetts merged to form the United Co-operative Society of Massachusetts with central executive offices in Boston. The business at Maynard, which was now only a branch of the state-wide organization, continued to expand. In 1920 it reached a total sales of $230,000. At the close of 1920 the central organization dissolved and each local society went back to independent control by its own local stockholders. Reduction in business to $189,000 in 1921 showed a gain of only $6,500. From that date onward, however, sales' increased steadily until the high watermark was reached in 1924 with $340,000 of sales and a net gain of $18,600. In 1925 sales dropped to $327,000 and in 1926 came up again to $333,000 on , which a net gain of $11,774 was made. Several years ago the distribution of milk was added to that of groceries,; meats, baked goods, and the restaurant service. In 1923 the society found itself with a large surplus on hand and invested $17,000 in a coal yard, railroad siding and equipment. This coal department is now a profitable part of the entire business. In 1926 $10,000 was invested in a building for a branch store located on the edge of town. This store sells not only groceries, but does a large business in ice cream, soda, and other merchandise popular with tourists along the state automobile highway. Several years ago the manager began handling a small line of furniture and kitchen-ware and this department has also proved to be a valuable addition to the services rendered the membership. Within the next twelve months the directors expect to inaugurate a delicatessen service. The chef working in their restaurant is a highly efficient cook and his services can be very well utilized in a delicatessen department. There is also the possibility that during the coming CO-OPERATION 63 -:- ?- .- -k THE DIRECTORS of the United Co-operative Society are the men who guide the destinies of this fine co-operative organisation. These men put a great deal of time, into the work. For instance, each director assumes responsibility for visiting at least once a month the ~barn ami dairy of several of the farmers who supply the milk for the Society. The entire Board thus maintains a fairly complete supervision of the source of supply for the members' mills supply. summer months ice cream will be manufactured directly at the -plant of the co-operative society. Thus the United Co-operative Society of Maynard is gradually bringing under its own control all the lines of business which cater to the needs of its members. A year or two ago the co-operative milk department installed a pasteurizing plant and since then has enjoyed the distinction of being the only dispenser of pasteurized milk in the town. Recently private milk dealers have been con ducting a campaign designed to convince the people that pasteurized milk is poor milk. The co-operative therefore sent out its assistant manager to conduct a honse-to-house canvass of milk consumers and within a few weeks gained one hundred new customers and persuaded as many more that pasteurized milk was cleaner, safer and better than the raw and untreated mill? from the farmer's barn. There is not space here to record the various contributions which the United Co-operative Society has made to the welfare and progress of Maynard and its people. The following instance is a typical example: The American Woolen Company dominates Maynard and through its control of all water power rights prohibits any other large industry from enter ing the town. Thus this corporation has an absolute control of the- local labor market, and can dictate the wage scale for the citizens. For many months the mill has been running part-time and there is much unemployment. As a result, many of the children are underclothed and undernourished. As a matter of fact, the Boston newspapers, getting wind of these facts, played them up in their customary sensational fashion and made Maynard out to be a much worse town 64 CO-OPERATION CO-OPERATION 65 than it really is. The directors and manager of the United Co-operative Society knowing that conditions among the children although not as bad as played up by the yellow papers, were much worse than some of the leading citizens were willing to admit, procured from the school nurse a list of eighty children who were declared to be undernourished. The co-operative then delivered to the schools, every day for ten weeks, one bottle of milk for each of these eighty chil. dren. The results which followed in the improved health of the boys and girls could be best stated by the local doctors and nurses. Waldemar Niemela was manager of the United Co-operative Society during 1916 and 1917 and from 1921 to the present. In 1919 and 1920 he was manager of the combined societies at the central office in Boston. During 1918 and 1919 A. Wirkkula, the present manager of the Finnish Trading Association in Brooklyn, was the manager at Maynard. The officers elected for 1927 are Andrew Jantti, president; Andrew Anderson, secretary; W. Niemela, treasurer The present membership is 630. The following items from auditor's report at the end of 1926 indicate the substantial financial condition of this remarkable organization: ASSETS CURRENT ASSETS: Cash (Maynard Trust Co.).................................. $ 2,969.11 Accounts Receivable . . ...................................... 9,767.08 Inventories ................................................ 21,803.08 Investments . . . . ........................................... 60.00 $34,599.27 FIXED ASSETS: Real Estate ................................................ $5»,200.00 Fixtures and Equipments . . . . ............................... 22,269.00 $75,469.00 Total Assets ........................................... $110,068.27 LIABILITIES AND CAPITAL LIABILITIES: Accounts Payable .......................................... $ 6,909.18 Notes Payable . . . . ........................................ 6,372.31 Rebates Payable . . . . ....................................... 4,290.28 $17,571.77 First Mortgage . . . . ........................................ 10,000.00 Insurance Fund . . . . ....................................... 4,988.55 CAPITAL: Capital Stock . . . . ......................................... $25,285.00 Preferred Stock ........................................."... 21,150.00 46,435.00 RESERVE FUND: Surplus . . . . .............................................. $19',899.06 Gain, First half . . . ........................................ 5,909.73 Gain, Last half . . . ......................................... 5,264.16 (Reserve for the expansion of the business as a consumers Co-operative) . . . . . .................................... $31,072.95 Total Liabilities and Capital............................. $110,068.27 SUMMARY OF SALES AND PROFITS FOR YEAR 1926 Sales Net Profits Store . . . . ..................................... $180,411.79 $6,690.81 3.7 % Branch Store ................................... 13,219.53 312.78 2.3 % Restaurant . . . . ................................ 18,426.76 Loss (405.36) 2.15% Dairy ......................................... 64,439.64 2,256.93 3.5 % Coal .......................................... 56,630.28 8:56.99 1.6 % Bakery ....................................... (35,652.22) 1,3.14.46 3.6 % Discounts . . . . ................................. 747.28 Total . . . . ................................ $333,028.00 $11,773.89 Vital Issues SERVANTS Perhaps the reason why the Co-opera tive Movement has gotten such a good start in Europe is because people can not afford to spend money for servants. It is easy to imagine the pioneers three-quarters of a century ago saying: "We work hard to earn our wages. We do not have servants at home. Our wives and children do the house work. But when we come to spend our wages the first thing we do is to hire servants." Perhaps, these people realized that they were hiring the private merchant to go to the wholesaler and buy goods for them, and bring the goods to town. They were hiring him to wait on them, to wrap up goods, to handle goods, and to do all sorts of things. The thought may come to some people to-day that, though they may work hard for their money, still, when they get it, they squander it with the profligacy of spendthrifts. People employ not only the retail merchant but a large catalog of servants all the way back to the sources of things. There is their servant, the wholesaler who serves their servant, the retailer. The wholesaler has the servants who make things and import things for him. The banker takes care of the money. He is paid a nice penny for his services. The insurance company is hired by the worker to protect him against dis aster. The company is well paid. The consumer employs servants to en tertain, to educate, to nurse, and to take care of him. Indeed, there are several million peo ple who would like a drink now and then, but they have another set of people to keep themselves from having what they want, or to bootleg it in to them, as the case may be. People who do not believe in murder, or in war, are paying a large serving class to kill other people. It is a strange business. Perhaps thinking about some of these things helped to start the first co-opera tive store. Simple and economical peo ple decided that they could not afford to hire somebody to go to the wholesaler and get things for them, they would do it themselves. When they wanted a pail of water, they went to the spring and got it themselves. They would do the same in business. This thought may have started the idea of a number of people getting to gether to be their own servants. Presently they found it could be done successfully in the merchandising field. Then they tried it in other things. There seems to be no end until people arrange among themselves to do everything for their own service. J. P. W. CO-OPERATION A PIONEER IN SCIENTIFIC FIELD It has been so often said that the co-operative movement cannot contribute much to research, invention or similar forms of pioneering, that the saying is now almost a truism. Those who repeat this statement point out that the move ment is too cumbersome and slow, too democratic and too much concerned with mere routine problems of distribution of the usual necessities of life, ever to make any great contribution in chemis try, physics, invention of new ma chinery. But the Ko-operativa Forbundet, Cen tral union and wholesale of Sweden, has shown that the organized consumers can do some very remarkable pioneering in a field where private business is not likely to venture. In fact, the Co-opera tives had to do this particular job if it was to be done at all. Several years ago scientists discovered that margarine (which is a substitute used much more generally than butter by the workers and farmers of most European countries) is deficient in vi- tamines and therefore does not begin to have the food value that butter con tains. In fact, much disease directly the result of malnutrition among children, has been traced to this diet of margarine. The leaders of the co-operative move- 66 GO-OPERATION CO-OPERATION 67 I BOOKS The following books are recommended as containing the best discussions of the modern Co-operative Move ment. They may be ordered through The League: Bergengren, Roy F.: Co-operative Banking, A Credit Union Book ..................... $3 QQ Blanc, Elsie T.: Co-operative Movement in Russia . . . . . . . ....................... 2.50 Brightwill, L. R.: Animal "Co-op" Book—For Children............................ ^5 Faber, Harald: Co-operation in Danish Agricul ture, 1918 ............................. 2.75 Flanagan, J. A.: Wholesale Co-operation in Scotland, 1920 ......................... 2.00 Gehhard, Hannes: Co-operation in Finland, 1916 2.00 Gide, C.: Consumers' Co-operative Societies American edition and notes, 1922. Cloth.. 2.00 Hall, Prof. Fred: Handbook for Members of Co operative Committees ................... 2.00 Harris, Emerson P.: Co-operation, The Hope of the Consumer. 1918. Paper bound........ .60 Holyoake: Rochdale Pioneers ................ 1.00 Howe, Fred C.: Denmark, a Co-operative Com monwealth, 1921 ....................... 2.00 Jessness, O. B.: Co-operative Marketing of Farm Products ......................... 2.50 Madams, J. P.: The Story Retold............ .50 Mears and Tobriner: Principles and Practices of Co-operative Marketing................ 3.20 Nicholson, Isa: Our Story................... .25 Oerne, Anders: Co-operative Ideals and Problems 1.2S Owen, Robert: Autobiography .............. .50 Potter, B.: Co-operative Movement in Great Britain .............................. 1.00 Redfem, Percy: The Story of the C. W. S. ... 2.00 Redfern, Percy: The Consumers' Place in So ciety, 1920 ............................. 1.00 Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918 ........................ 1.00 Smith-Gordon and O'Brien: Co-operation in Denmark. . . . . . . .................... 1.00 Smith-Gordon and O'Brien: Co-operation in Many Lands, 1920 ..................... 1.50 Stolinsky, A.: The Co-operative Movement. (In Yiddish). ............................ Warbasse, J. P.: Co-operative Democracy, 1927.. Warne, C. E.: Consumers Co-operative Move ment in Illinois ........................ Webb, B. and S.: The Consumers' Co-operative Movement, 1921. Board, $2.00; cloth..... Webb. Catherine: Industrial Co-operation, 1917. Woolf, Leonard: Co-operation and the Future of Industry . . . . . . . ..................... . Woolf, L.: Socialism and Co-operation........ !•* Co-operation in Great Britain and Ireland, paper & CO-OPERATION , Bound Volumes, 1915 to 1925 inclusive, each ......................... '•" Transactions of Second American Co-operative Congress, 1920 ......................... Transactions of Third American Co-operative Congress, 1922 ......................... Transactions of Fourth American Co-operative Congress, 1924 ......................... Northern States Year Book, 1926. Paper..... The People's Year Book, 1927. Cloth, $1.00; paper bound ......................•••*. 1.00 1.50 3.50 5.00 1.50 1.00 1.00 1.00 t .60 (MOTION A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in voluntary 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, December 19, 1917, at the Post Office at New York, N. Y., under the Act of March 3, 1879. Price $1.00 a year. VOL. XIII, No. 5 MAY, 1927 10 CENTS - I'* ,,- "f-'!i-. M • ' I BLOOMINGTON CO-OPERATIVE SOCIETY ha* Us Main Store right in the center of oun uliere the general public as well as the membership can see its attractions and sample^ ™«iT °reS' t *thm0s lo(* dorfc in this Picture, it is the fault of the camera and the photog- rapner, not of the Co-operators. The following pages tell the story. (.Ten cents postage should be added for all books.! 82 CO-OPERATION How Private Business in One Town Lost $50,000.00 Growing tired of seeing every successful effort of their trade unions to improve their condition by increasing their income, immediately nullified by a corresponding- increase in the retail price of the necessities of life, a small group of trade unionists in the little city of Bloomington, Illinois, early in the summer of 1917 started an active campaign of-agitation for a co-operative store. After several months spent in talking co-operation to every one they could get to listen to then, speaking before/trade union meetings and arguing and pleading with individual workers on the streets and in their homes, they suc ceeded in getting quite a number of verbal promises to become members of a co-operative society in the event one was organized. Encouraged by these promises, they finally decided to call a meeting and set in motion the actual work of organizing a society. When the meeting ni»ht arrived only four people turned out, Had the leaders of this little group been less dauntless in spirit or lacking in determination, they would have given up the effort then and there. Instead, they refused to be discouraged or to think of giving up. They continued to talk and agitate on every possible occasion, in season and out, It seemed that the near failure of their first attempt only inspired them to redouble their efforts. After several weeks another meeting was called and this time nine people were in attendance. Encouraged by this more than 100 per cent increase in interest they became more than ever determined to see the thing tlirough and started out the next day to interest more people in the project. At a third meeting, two weeks later, 28 people were present and the actual organization work was begun. _.-' Oil November 25, 1917, the Bloomington Co-operative Society was formally organized, and on' January 12, 1918, the store opened for' business, with a membership of 227 and share capital of $3,500. From that day on, this society has' been one of the outstanding successes in the co-operative movement in America.- The first year's sales'amounted to $18,000. In 1925 the society did a business of $195,000. The sales fell in 1926 to approximately $170,000, and the total membership* on January 1st of this- year was 334 with share capital of- $27,000, loan capital of $7,730, and $22,900 in the Reserve Fund. During the' nine years of its existence the Society has made net savings of approximately $50,000 of which' more than $20,000 has been placed in the reserves and $30,000 paid back to the members in purchase rebates. In 1921, having outgrown its rented quarters, the Society purchased the first unit of its present home. After remodeling and redecorating this building, the Society moved into what was immediately pronounced the most attractive retail grocery and meat store in the city and one of the most beautiful co-opera tive stores in the entire country. For a number of years they have enjoyed the largest retail grocery and meat trade in the community. This is especially true of their meat market which has a large non-member patronage. It was not long before it was decided to construct a balcony and put in a line of shoes and work clothing. By 1924, this department had outgrown these cramped quarters and it was decided to purchase the adjoining building to take care of present and future expansion. A complete furnishing goods store was opened and the balcony thus vacated was utilized to add a line of queensware and kitchen utensils. Shortly after the purchase of the second building a movement was launched to convert the second story into a home for the social activities of the Society. CO-OPERATION 83 84 CO-OPERATION II III " Co-operative Hall " with its spacious assembly room, its Directors' room and its large and completely equipped kitchen is the pride of the Society. Their only difficulty has been in retaining it for their own use as the demand from would-be tenants is so great that it is hard to keep outsiders from monopolizing it. It is here that the First Annual Congress of the Central States Co-operative League will be held May 22 and 23. Like most other societies, they have had the problems and difficulties typical of a young and growing co-operative movement. On two or three occasions they have faced a serious crisis in their affairs but they have weathered these with remarkable acumen, thanks to their progressive spirit and the sincere interest that the membership has always shown in the affairs of their society. They early realized the value of knowledge and understanding of co-operative principles and of the strength that comes through federation and close and constant contact with the rest of the movement and have always pursued a progressive and far sighted policy along these lines. The Bloomington Society was one of the first independent societies to join the old Central States Co-operative Wholesale Society when it was organized and supported it loyally through its existence. It was the first society to affiliate with the Central States Co-operative League when it was organized last year and some of its officers took the initiative in organizing the League, and were instrumental in bringing the headquarters of the district organization to Bloomington. Bloomington was among the first societies in the country to organize a Women's Guild and of the many that have been organized, the Bloomington Guild is still one of the strongest. This organization has had every encourage ment from the Society and has always been very active, especially along' social lines. Each year it has charge of the arrangements for the Society's Annual Banquet and other social functions as well as conducting a number of such affairs on its own account. A joint committee from the Society and the Guild is in charge of the local arrangements of the coming Congress of the Central States League and they are working out a very interesting program for the entertainment of the delegates to this Congress. A series of classes for the study of the history, theory and principles of Co-operation for directors, employees and members has been conducted during' the past winter under the direction of the Educational Director of the Central States Co-operative League. The Women's Guild has recently inaugurated a series of lectures at their regular monthly meetings designed to give the members a better understanding of the part that women have in the co-operative movement. Through the resignation of Mr. R. E. Uhrie on account of ill health, the Society was forced to seek a new manager April 1st. They consider themselves extremely fortunate in securing the services of Mr. C. E. Gillens who has earned for himself an emaable reputation as the manager of the highly successful Villa Grove, 111., Society for the past seven years. Mr. Gillens took charge on April 1st and with competent management assured and a membership whose loyalty has stood all tests in the past, the future of the Bloomington Co-operative Society seems especially bright. __________ A. W. WABINNEE. CO-OPERATION 85 NORWEGIAN ETHICS A co-operative society in Norway, a member of the Norwegian Central Union, requested the Union to strike its name from the Union's membership list. This was an unusual request. A repre sentative of the Union visited the society and found that it had violated the rule of selling for cash and had been giving credit. Now it found that it was about to fail. "But why do you wish to resign from membership in the Union?" asked the representative. ''Because we do not wish to damage the Union,-" was the reply. The Union lent a hand and saved the society from failing. Where there is a sense of responsibility, there is also help- SCHWEITZ-KONSUM-VEEEIN. 16 October 1926. Vital Issues CONSUMERS IN WONDERLAND The Federal Trade Commission can cot be regarded as a very terrible or subversive institution. It is a depart ment of the United States Government. Its function is to prevent the grosser forms of fraud being committed against the public. This is really not in the interest of the public but in the interest of business, because it is well known that it is not good for business to treat the public too roughly. Mr. Stuart Chase and Mr. F. J. Schlink in The New Republic are running a series of articles based on this subject. Misbranding of products seems to be one of the common disadvantages from which the public suffers. Products of Park and Tilford, the high-toned and high-priced grocers, labeled to contain real lemon, contained none. "Philip pine mahogany" is not mahogany. "Nashua Woolnap" blankets contain no wool. "De Lux Pongee" was found innocent of silk. '' Rubber roofing'' had never smelled rubber. "Naphtha Soap Chips" had failed to connect with naphtha. A pencil marked "14 K," was 14 K only as to the little top end on which 14 K was stamped. "Platinum 18 K" is found not made of platinum; one such piece of jewelry, valued at $300, contained less than a dollar's worth of platinum. Thus the consumer seems to be sur rounded by forces interested in fooling him. The investigation finds in the mar ket "seconds" in galvanized roofing sheets; these sheets are marked "sec ond." Some jobbers remove this stamp with acid. One is reported to have left 't on and added the words "To none." He then was able to sell it to the public as the prime article. Then there is the "air heating device" which when attached to the furnace would produce 25 to 50 per cent more "eat per pound of coal and 20 to 40 Per cent less ash." Brown University tested the device and found that it rje- «uced the heating power of the stoveJS.l , cent- • The newspapers that carry the -wverhsement of this wonderful coal saver do not regard the report of the Brown engineers as "news fit to print." Cotton is sold everywhere for silk, "natural wool," "camel hair," "Scotch wool," "lambs' wool," "Persian fleece," and "Natural merioii" is often a mixture of cotton and wool. Mercer ized cotton masquerades as linen. '' Irish linen" handkerchiefs are lucky if 50 per cent of linen gets in. The women's fur coats are the great joke. It seems that 90 per cent of the fur sold in the United States is not sold under its right name. There is no such animal as "Hudson seal." The poor little rabbit has to fur nish most of our otter skins. The housewife had noticed that she had to buy more spools of thread during the war. The reason was that the 200 yard spool had been reduced to 150 yards, and a further reduction to 100 yards was threatened. The spool was made thicker. Wood took the place of thread. The consumer is said to lose, $11,000,000 annually in the City of New York alone on short weight in bread. Electric supplies, at low prices, arc sold everywhere and prove not only ex pensive but dangerous. They are not made to conduct electricity but to con duct profits into the pockets of the makers and merchants. We give these few modern instances to cite the moral, that, neither the con sumer's pocket book nor his life is safe so long as he permits himself to be at the mercy of forces whose only concern is to make as much profit out of him as possible. LABOR OWNERSHIP In the State of New York the factories to-day employ fewer workers than they did in 1914. The same factories produce 5Q per cent more than they did in 1914. Their payrolls have doubled. This is a general picture of what has happened all over the United States in the last dozen years. Labor-saving machinery is one reason. Some say prohibition is another. A third is a different moral; labor is more inter- If 1 86 CO-OPERATION CO-OPERATION 87 ested in the job and is giving better service—there is less sabotage because labor is getting possession of the stocks and bonds of industrial corporations, and consequently has a more sympa thetic interest in the success of the business. In the United States, twelve of the largest corporations with a capital of over four billion dollars are owned by 1,158,800 stockholders with an average holding of $3,750. The same condition is developing in Great Britain. Eighteen representative British corporations show that owner ship is distributed among 500,000 with an average stock holding of $1,500. Over one-third of these stockholders own less than $500 in stock. Bonds also are going into many hands the same as stocks. Once these securities were owned by a few people. Labor's share in this ownership and in the ownership of the twenty billion dol lars lying on deposit in the savings banks is one of the answers to the question: Why is labor now working more har moniously with capital than before the war ? This whole matter has serious meaning for the Co-operative Movement because so long as labor is contented with cap italistic business and is actually going into partnership with it, labor will not be much interested in organizing co-op erative societies. Tt i.s possible that the further growth of Co-operation may have to rest upon education or upon the expansion of those societies that already exist. This must needs be the case if the dire pressure of economic' necessity is not to be opera tive in the ranks of Labor. If Labor once gets the idea that it can gain possession of the capitalistic cor porations by buying them with its wages, co-operation will suffer its greatest set back, for Labor to-day is more interested in becoming capitalistic than it is in establishing a more just and more prac tical economic system. J. P. W. IS THIS HERESY? '' The value of trade unionism is great, but it is a barren thing. It can produce nothing, for the only power a trade union has is the power to stop production . . . Trade union action cannot effect a change of ship, or make any real alteration in the rel- tion of masters and men, or bring about re-distribution of the national income. * "Economic power—the power to produc" wealth, to alter class relationships, and subst" tute a new social order for the old, is not in the trade union but in the co-operative society While trade unionism displays its inability to alter the status quo Co-operation is actually shifting the ownership of property from tlie few to the many, changing the status of labor and distributing wealth in a more equitable and equal way. It has economic power in ;ts stores and factories, its mills and farms, and has already eliminated the profiteer, 'made capital a hired servant, and made business organizers agents for pay. While excited trade unionists denounce capitalism the Co-operative Movement is beginning to change the social order. It is displacing capitalism by the simple process of replacing it by a new economic system, and is accomplishing its purpose with out violence, without threatening the life of society, and without causing any disturbance as it grows." The foregoing is not the statement of an Open shopper, nor a member of In ternational Eotary, nor a British mine owner. It was written by one of the foremost students of economics in Eng land, by a man who has been with both the labor and the co-operative movements for many years. We offer this explana tion because we realize how outrageous such heretical statements will appear to the ardent trade unionist or trade union sympathizer. Perhaps we are unfair in tearing these few final paragraphs away from the first part of this article. For the first part is devoted to praise for the organized labor movement, its great achievements not for labor alone, but for society and the state as well. The writer says: '' Trade unionism has been of enormous value, not only to the wage earners but to society at large. By it the workers have been able to improve their working conditions, to secure higher wages, and to reduce their hours of labor. Organization has enabled them to bar gain with their employers on more equal terms, to establish standard rates of pay, and to enforce common rules and uniform conditions in many industries. These are real and sub stantial gains, none of which could have been secured apart from trade union organization and action. Nor have all the gains of trade unionism been secured by trade unionists. Em ployers, too, and the State, have benefited by the growth of trade unionism, which has made peaceful negotiations and reasonable bargains possible, and prevented innumerable local strikes and lock-outs from taking place. Trade • nism has served a social purpose and none I know the facts will question its value or Jttire to lessen its power." Hut this writer wants it recognized that trade unionism, like any other eco- omic or social movement, has its limi tations- Does he state those limitations rectly? \ye are not in this editorial endorsing the sentiments in those first two paragraphs. We are asking our readers how much truth there is in them. Nay, more than that, we are asking our radicals generally whether this is a ques tion open to discussion at all. For we know many, very many men and women now ardently championing the cause of labor who would turn pale with indigna tion if anyone even asked them to con sider such a thing as "limitations" to the power of organized labor. WHEKE IS CO-OPERATION HEADED IN HUNGARY? "It can be said of the Hungarian Co-opera tive Societies that they do not aim at sub stituting private economic activities, and still less at eliminating them, but that they are working to become a regulating influence in controlling the price of commodities and the interest on credit operations. Their propa ganda is directed to furthering the moral restoration and the sense of solidarity and altruism in business life, and not to bring about the fall of a trustworthy section of the business community. . . . All this (co operative effort) raises -the purchasing power of the consumers, and therefore, benefits, indi rectly, trading, industrial and credit institu tions."—(From an article by the General Di rector of the National Central Co-operative Society of Hungary, appearing in the Inter- tianal Co-operative Bulletin.) lu other words, Co-operation in Hun gary does not disturb private business nor private profit but does exist only as (a philanthropic) effort to make the workers and farmers a little less miser able and therefore less sensitive to subversive radical propaganda! Doubtless this is the opinion of M. Balogh, the General Director of "Hangya." The other leaders of that particular Union (the largest in Hun gary) may agree with him. We raise the question, however, whether they under stand the real nature of Co-operation, after all. If the societies affiliated with "Hangya" retain their genuine co-op erative character and continue to grow in influence and power, they cannot help but infringe upon the territory and the power of private business. In other words, the Co-operative Movement, so long as it continues to grow, and to grow co-operatively, cannot do other than "substitute" or "eliminate private economic activities.'' C. L. Foreign CO-OPERATORS IN THE FAR EAST Wong Yun-wu, President; Chu Moh- cheng, Vice-President; P. K. Chu, Sec retary; and Fan Tzo-mei, Treasurer. This is the roster of officers of the newly formed Shanghai Consumers' Co-opera tive Society, first organization of its kind m this city, now the center of military hostilities. The capital is $5,000, composed of *,WO shares at $5 each. Each member roust buy two shares, and receives 5 Per cent interest. Of the net gain each year 20 per cent will go to the reserve ™d 20 per cent to educational and social welfare work, 10 per cent to the employees' bonus, and the remaining 50 per cent to customers' purchase rebates. The society is organized absolutely in accordance with Rochdale principles. TAXATION OF CO-OPERATIVES IN ENGIAND There is a great agitation being con ducted by the private business interests of England to force through Parliament a bill which would compel co-operative societies to pay taxes on net earnings in the same proportion as taxes are paid by private traders on profit. The agita tion has been boiling for many months, and recently Winstou Churchill, Chan cellor of the Exchequer, gave out a state- 88 CO-OPERATION CO-OPERATION 89 meiit of his position on the matter. It is about as follows: Quite true, co-operatives should not be taxed on their earnings. As a matter of fact, if the undivided surplus of the so cieties were to be taxed it would bring to the government only about 100,000 pounds annually, and the collection of the money might cost almost that much. In fact, the sum at stake is not enough to justify the introduction of highly con troversial legislation. But since the sum is so small, would not the co-operatives themselves consider the advisability of making a contribution of 100,000 pounds to the government, thus removing the widespread sense of grievance and un fairness on the part of other business interests. In other words, Mr. Churchill pro posed that although the societies are not liable, yet they should pay this sum in order to placate, buy off the private busi ness men. Put in another way, the capitalist interests do not care whether the government gets any revenue or not, but they do care very much that the co operatives should be harried, hounded, worried and penalized so that their com petition will not be so bothersome. And Mr. Churchill falls for their recommen dation that a kind of blackmail be insti tuted against the co-operatives. It would be a sad day for the Co-operative Move ment when it first permitted the private traders of any country to thrust a gun in its face and demand a gift of $500,000 as a bribe for freedom from molestation. A. V. Alexander, Co-operative Mem ber of Parliament, expressed the appre ciation of co-operators for the fair inter pretation of co-operative non-liability for taxation, but sharply repudiated the suggestion that the co-operators pay any 100,000 pounds to procure a "peace which would be no peace." SHALL BUSINESS BE CO-OPERATIVE OR MUNICIPAL? Since the increased demand for mu nicipal milk, municipal coal, municipal stores, and other municipal business un dertakings has been in evidence in Eng land, The Co-operative Official, is becom ing aroiised by the apparent menace and asks the following questions: "The issue which has now arisen js a practical issue for every large co-opera tive society. Is the capital which a so ciety has invested in its bakehouse or its dairy to be made valueless by the action of local town councillors? Must the financial stability of a society be im paired because a municipality has passed into the hands of collectivists ? Ought a municipal authority to enter into compe tition with its own members who have already united to supply themselves with milk or bread or coal ? Is the future of the Co-operative Movement now to be jeopardized simply because revolution ists in a hurry cannot distinguish be- tween Individualism and Co-operation, and think they cannot destroy capitalism unless thev first sacrifice the Store on the altar of the State? '' The time has come when British co- operators must decide in what direction they intend to travel. If any think the business of the Store should be trans ferred to the State they ought to say so in plain terms. Those who think other wise will then know who their opponents are and at whom they must aim their guns. . . . Co-operative officials must ask the Co-operative Party to keep col- lectivist politicians in their proper place.'' CO-OPERATIVE PIONEER OF ITALY DIES On March 29, Ltiigi Luzzatti, founder of the Co-operative Movement in Italy, died ;at the age of eighty-six. Mr. Luzzatti was one of the foremost social philosophers, political economists, jurists and financiers of Europe between 1870 and the World War. Born of Jew ish parents at Venice in 1841, he devoted himself very early to a study of litera ture, philosophy, natural science and re ligion. Immediately after his gradua tion from college, the Austrian govern ment expelled him from Venice on a charge of treason for having started a mutual aid society among the gondoliers. From that day onward began Luzzatti's active interest in the promotion of co operative activities and the movement of Italy has written upon it the stamp of his individuality up to the day of its suppression by the Fascist government. It was in the 60's and 70's that the spread of the People's Banks, under his leadership, extended throughout Italy. He was Professor of Constitutional Law in tlie University of Padua; on reaching parliamentary age, he became vice-minister in the cabinet of Min- oietti, organizing a provident and labor council. In 1891 he was made Minister of the Treasury and saved the country from bankruptcy. He originated the law for compulsory accident insurance, many measures on immigration and most of the existing legislation on Co-opera tion. In 1909 he was made Minister of Aoricultural Industry and Commerce, saved the Bank of Naples from failure and later became Minister of State. Since 1911 he has been in retirement except for a short period as Minister of the Treasury under Premier Nitti, and a short service as Senator. One of his best known books is that entitled "The Liberty of Conscience and Science.'' A few months ago, Professor Luzzatti made a public statement endorsing the Mussolini government, much to the sor row and regret of all his colleagues in the co-operative movement of other countries. A reply to his statement on the part of the veteran Charles Gide appeared in a recent number of the International Co-operative Bulletin. News and Comment EASTERN TRAINING SCHOOL IN SESSION ON APRIL 18 The Eastern States Training School opened at the Finnish Club House in Brooklyn with an attendance of sixteen students, eleven of them men and five women. The morning was given over to the routine work of organization and Mr. Nurmi started his bookkeeping class immediately after the students returned from a sumptuous dinner tendered them by the employees of the Co-operative Bakery. On Tuesday the class in His tory and Principles of Co-operation, taught by Mr. Edward Cohen, and the class in Organization and Administra tion of Co-operative Business conducted by Cedric Long were started. According to the testimony of the vet eran training school instructor, H. V. Nnrmi, this group of students is much above the average in most respects. The ages of the students range from sixteen to thirty-six years and this class is not hampered by the presence of older men and women who in some cases have re tarded the progress of previous classes. The average of school training of the students is unusually high, only three of them having less than a complete ele mentary schooling. Five nationalities are represented,—Finnish, Jewish, Bo hemian, American, and German. Eight students are married and eight single. Ten have been or are now employed in co-operative business—three of them as store clerks, two as drivers, and one each as office worker, waitress, kitchen worker, branch manager, and bookkeeper. The societies represented by these students are the Finnish Co-op Trading Assn., United Workers' Co-op Assn., Utica Co op Society, Co-op Bakeries of Brooklyn, Workers' Mutual Aid Assn., United Co-op Society of Maynard, United Co op Society of Norwood, and the New Co-op Company of Dillonvale, Ohio. There are only two students who do not represent any actual society and they are from the neighborhood of Spencer, N. Y., where the farmers plan to open a co operative store in the very near future and have sent these young men to pre pare themselves for the work. The youngest student, Albert Lejsek, is only sixteen. He is sent to the school by his father, one of the veterans who organized the big New Co-operative Company at Dillonvale back in 1908 be fore this boy was born. This staunch co-operator is determined that devotion to the co-operative movement shall not die from his family but shall be carried on by his children. The Finnish Trading Association has four students in attendance,—the book keeper, the restaurant manager, a wait ress and a truck driver. This particular 90 CO-OPERATION CO-OPERATION 91 1 Association has granted six scholarships of $60 each and in addition has donated $200 to the financing of the school. Four of these scholarships have been given to students from other co-opera tive associations. Many of the leading co-operators in Greater New York are giving special lec tures to the students. Among them are: Dr. J. P. Warbasse, Harry Rappaport, Agnes D. Warbasse, Leslie Woodcock, M. Eubinson, A. B. Albrecht, Mary E. Arnold, A. Wirkkula, Henry Askeli and several others. Trips are to be made to the more significant enterprises in Greater New York and one excursion to Brookwood Labor College at Katonah, N. Y. CO-OPERATIVE SOCIETY OF AMERICA ALIVE AGAIN Early in 1926 appeared Volume I, No. 1, of an 8-page magazine entitled Co-operation, published by the Co-opera tive Society of America, Harrison Park er 's well known fake co-operative which took nearly $15,000,000 from innocent subscribers to shares of beneficial interest. This magazine continued to appear at intervals throughout out 1926, proclaiming that, like the Phoenix of fable, a new bird, very much alive, was arising from the ashes of the old Society. To quote the words of the editor, "The Co-operative Society of America was for a short time obscured and.... burned to a crisp, from which it is rising as a new and vigorous organization; and it will move conserva tively but rapidly to accomplish its great, social purpose, the founding in Chicago of the basis of the co-operative movement for the consumers in the United States!" The Society is now operating a bank (The City State Bank of Chicago) and an Insurance Company (The People's Life Insurance Company). The Trustees claim that the deposits of the Bank have increased from $354,000 in 1922 to $2,730,103 in October, 1926. Total re sources at the latter date were three and one-half millions. Dividends are prom ised when the deposits reach the $4,000,- 000 mark. There is less boasting about the success of the Life Insurance Com pany, which leads one to suppose that it is not doing so well. The three trustees of the C. S. of ^ were, in 1925, Seymour Stedman (Weu known Chicago lawyer), John Coe and Edward Kesler. The second served as trustee during the Parker regime. ln 1926, on the death of Mr. Coe, Frank D Robinson became a trustee. There were, at the close of 1926, up. ward of 25 membership clubs, composed of holders of shares of beneficial interest in the Society. These local clubs are apparently, for the purpose of keeping up local morale, promoting some joint buying of commodities on the buying club plan, and otherwise supporting the central administration. The trustee's report at the end of 1926 claims that membership shares, which had dwindled in value to $2 each in 1923 have agaiu come back until they are now worth $39. The following sentences appear under the heading " Report from the Execu tive Committee:'' "The Society three and a half years ago had a deficit of nine million eight hundred thousand dollars ($9,800,- 000.00). By capital adjustment this has been reduced to $5,000,000. The in terest charges on delinquent accounts will reduce it $3,000,000 more, leaving a deficit of about one and one-half mil lion. At the present rate of improve ment this deficit may be expected to dis appear in the near future. . . . Dur ing the past three and one-half years our Trustees have paid off $1,082,000 of debts inherited from the former mismanagement.'' The Society claims that its paper is being sent to forty thousand members. In the July issue of the magazine ap pears an interesting article entitled "Dividends Approach as Debts Go," but in the November issue there is no definite assurance that dividends are yet being allotted. There are many other interesting statements appearing in these little propaganda papers. One article shows the great benefits reaped by the Dublin dock workers when they were on strike and the Co-operative Wholesale Society came to their aid with a shipload of food (a story designed to fool the readers • to thinking that the Co-operative So- '"ety of America is a Rochdale co-opera- f-ye) Elsewhere is an article portray- • l„ Abraham Lincoln's efforts to run a orocery store, its failure, and his ulti mate election to the Presidency of the I'nitecl States. The Co-operative So ciety of America also failed in its efforts to run the grocery business. Moral: " In the case of Lincoln as in the case of the Co-operative Society, the closing of the grocery store was only a temporary set back/' The Co-operative Society is not vet presiding over the destinies of this republic, but it is running a "success ful" bank. Still another article plays up the big profits that are to be made from the purchase of bonds through the Society's bank. Whether the business methods of this so-called Co-operative have been re formed or not is an open question. Its co-operative propaganda is as wild as ever it was in the days of Harrison Parker. HIGH SCHOOL CHILDREN TO STUDY CO-OPERATION In CO-OPERATION for April appeared a letter written by the officers of the United Co-operative Society and the Workers Credit Union of Fitchburg', Mass., offering an annual appropriation of $100 to be given as prizes to the students of the Fitchburg' High School for the four best essays on Consumers' Co-operation. The following letter from the prin cipal of the school to the United Co-op erative Society assures the co-operators that, the first contest will be opened early in the autumn of! 1927: FITC'HBURG HIGH SCHOOL Fitchburg, Massachusetts, March 29, 1927. Mr- K. E. Grandab.1, Manager, United Co-operative Society of Fitcbburg, fitohburg, Massachusetts. "w Mr. Grandalil: iour communication of March 15, 1927, has «*n received. As it is so late in the year, and work tor this year is already well planned, A. lmwise to mention this contest until »r V7 of tlie sdl001 year'in June>wlien MjT" meuti°n it and require that essays be Ifcp'l .m t0 "R some time in °€tober. possibly ">« of October, and we shall se-fe that you get a certain number of essays by November 30, 1927. We tibank you for this interest in the mat ter, and trust that tlie pupils will learn some thing about co-operation that will \te of value to them. Yours very truly, CHARLES T. WOODBTJRY, Principal. JOINT EDUCATION COMMITTEE FOR GREATER NEW YORK In accordance with the decision of the Eastern States Convention at Fitchburg on April 3, .several delegates from co operative societies around Greater New York met at the League House on April 14 and organized a joint co-operative educational committee to promote the educational work among all of the co operative societies in the territory. The chief item on the program of this new committee is preparation of a huge cele bration of International Co-operators' Day on June 26. Tentative plans were also proposed for a joint educational two-day conference somewhere outside the city; for a series of inter-co-operative entertainments next winter, and for other events. The co-operative representatives at this first conference were the Finnish Co-operative Trading Assn., Consumers' Co-operative Services, United Workers' Co-operative Assn., Consumers' Co-op erative Housing Assn. The Russian Workers' Co-operative Stores Assn., and the Co-operative Bakeries of Browns ville each have members on the com mittee who, however, were not able to attend. CENTRAL EXCHANGE ANNUAL MEETING The Co-operative Central Exchange of Superior, Wisconsin, which now boasts a membership of 74 retail store societies or buying clubs, held its Annual Meet ing late in March and the delegates were in session for four days. In addition to the member societies which made pur chases from the Exchange during the year, there were more than forty non- affiliated stores which bought from the Co-operative Exchange. On a total sales of $1,048,293 a net gain of $11,648 was recorded, by far 92 CO-OPERATION CO-OPERATION 93 , the largest which the Exchange has ever had. The paid in capital stock is now $37,249 and the reserve fund $8,500. Several new directors were elected at the annual meeting. Increased support was pledged to the Northern States Co operative League and in general a spirit of optimism and determination to make still greater progress in the future ani mated all the sessions. FINE REPORT FROM WOODLAND, WASH. The Farmers Co-operative Trading Company renders an excellent annual financial report. Total sales for the year 1926 were $76,821 on which a net gain of $874 is reported, or 2.44 per cent of sales. Expenses have been kept down to the low figure of 10.3 per cent and the stock turn was 5.2 times for the period. The Trading Company has paid in capital of $10,140 and reserve or other capital liabilities of $6,735. John Sailey, is the efficient manager of this company and he appears to have the aid of an excellent board of directors. PROGRESS AT KINCAID, ILLINOIS With the closing down of the mines on April first, the Kincaid Co-operative As sociation is beginning an active educa tional campaign with the distribution of many leaflets and the holding of many meetings for its members. The manager reports that the idleness of the men pro vides an excellent opportunity for pro moting a better understanding of the Co-operative Movement, Total sales for the last six months of 1926 were $14,943 on which a net gain of $688 was made. Kincaid, like most of the mining communities of Illinois, has suffered from much unemployment or part-time employment until the re cent boom in the mining industry occa sioned by the British mine strike and the rush on the part of the big operators to pile up reserves against the threatened strike in this country. Instead of being downhearted at the prospect of unem ployment at Kincaid, Matt Vitton, the manager, hopes that the membership and the business may be increased as a result of the educational campaign now inaugurated. WORKMEN'S FURNITURE FIRE Tw SURANCE SOCIETY HOLDS ANNUAL MEETING On April 8, a lively meeting of more than six hundred members of the Work men's Furniture Fire Insurance Society took place in the Labor Lyceum in the Yorkville Section of New York. Two complete slates of nominees were pre^ sented, one by the so-called "Progres sive" faction and the other by the "Ad ministrative" faction of the members and balloting- continued for upward of two hours. The old administration was returned to office by a vote of three to one. The Executive Secretary of The Co operative League spoke just before mid night making an appeal to the society that it affiliate with The Co-operative League and thus become an integral part of the American Co-operative Movement. After considerable discussion, the meet ing instructed the Executive Committee to investigate the matter further and to take such action as seemed wise. The financial report as of December 31, 1926, shows a membership of 45,442 whose furniture is protected to the total amount of $47,953,923. The guarantee fund is now $479,539 and the reserve fund $109,505 in addition. As usual an assessment of ten cents for each one hun: dred dollars worth of insurance is being made in 1927 for the members of the main branch in New York. The rates for the other branches are in most cases slightly higher because of additional local expenses. BUILDING AND LOAN ASSOCIATIONS GROW It is now some 'Seventy years since the oldest building and loan association in the United States was founded. The plan was launched in a small way as a scheme to promote home owning. Now there are 12,800 local building and loan associations in this country with a total membership of 11,275,000 persons and assets of $6,280,000,0'00. Last year, it is estimated, 450,000 homes were financed by these associations which loaned about $1,600,000,000 for home construction purposes. The first building and loan association dates back to 1831 when a society was formed near Philadelphia. It issued shares for a specified period, and when t}iev readied par value the association went out of existence. Other associa tions were formed on the same plan. These societies grew up in the Eastern States, then in the South, and shortly after the Civil War they appeared iu the Middle West. The later societies \vere made permanent organizations. After 1880, enough experience had developed to make these associations very substantial. Favorable legislation was o-otten in all of the states. Still Penn sylvania has always kept the leadership, and to-day it has three times more of these societies than any other state and a larger total of assets. But Ohio has the largest number of members— 2,000,000. New Jersey comes second in the number of associations and third in assets and membership. Arizona has six associations, Rhode Island, seven, and Vermont, nine. In total assets Massa chusetts is fourth, Illinois fifth, and New York sixth. Fifteen states have more than 100 associations each, 17 have more than 100,000 membership each, and 12 have more than $100,000,000 total assets each. Here is a large banking business, with housing as its end, which stands at the threshold of Co-operation. It serves a useful purpose. It is one of the many steps which the people are taking which shows the natural tendency to carry on business for service. FINE BUSINESS AT NEFF, OHIO Neff, Ohio, is another mining town about twenty miles from Dillonvale and has received little attention by the co operative movement in general merely because it is overshadowed by the very Rreat success and the large amount of business done by its neighbor. Net sales for the year 1926 were $90,453 on which a total net gain of •$8,013 is recorded. The members have a paid in capital stock of $4,667 and a reserve fund of $4,438. Both of these very successful societies m the eastern part of the state are fully Paid up members of The Co-operative League and active supporters of the gen eral co-operative movement throughout the country. GROUP STUDY OF CO-OPERATION John E. Gordon, chairman of the com mittee on Consumers' Co-operation of the Alberta Federation of Labor is con ducting an active campaign to organize study classes among the Trades and Labor Councils of his province, urging that a capable member in each group be made responsible as leader of the class. It is the intention to induce several of these groups to subscribe for the course in the History and Principles of Con sumers Co-operation, offered by the League Correspondence School and make this course a center around which educa tion in Co-operative principles can be organized. The Director of the League Correr spondence School has had inquiries from a few other groups interested in the same general proposition for group study of the Co-operative Movement. CO-OPERATIVE FESTIVAL IN BROOKLYN The "Finco Co-operators," better known as the Finnish Co-operative Trad- ing Association of Brooklyn, is staging a large festival at Ulmer Park, all day Sunday, May 15. There are to be all kinds of sport and athletic events. There will be band concerts, singing by a male chorus and other musical numbers.. There will be speeches by prominent co-operators, recitations, parodies. Dele gates from other co-operative societies will bring greetings to the members of the Finnish Trading Association. This co-operative holds an annual celebration each spring. However, the festival for 1927 promises to be the largest and best attended of them all. MINOT, NORTH DAKOTA The Sixth Annual Report of the Minot Co-operative Company indicates that this young society is making very rapid progress. Whereas total sales in 1925 were $119,787, they were in 1926, $159,- 758. The net gain for last year was $8,331, half of which is returned as rebates on patronage of non-members. 94 CO-OPERATION CO-OPERATION 95 .mi i'i Apparently the society at Minot is doing a much larger business with the general public than it is on shareholders for the latter received only 15 per cent of the money repaid on patronage. A study of the financial report from Minot makes interesting reading. For instance, a bonus of $185 was paid to employees at the end of the year out of earnings; $206 was charged off for bad debts; $347 was set aside into the educa tional fund; $1,330 went into the reserve fund bringing the total reserve up to- $4,600. There are sixty-one shareholders in the company. District Leagues EASTERN LEAGUE CONVENTION On April 2d and 3d, at Fitchburg, Mass., the Eastern States Co-operative League held its Annual Convention and the Board of Directors held an impor tant meeting. There were fifty-five people present representing seventeen societies, thirteen of which are affiliated with the Eastern States League. During the Convention the Workingmen 's Co-operative Bakery of Lynn, also affiliated. The treasurer's informal report for the past ten months showed an income of $1,265 and ex penditures of $1,530. After considerable discussion of the purchase of green coffee direct from the importers and the roasting and bagging of this coffee, under our own label, it developed that work could proceed at once if our new bag were ready. The special committee on designing a bag was therefore urged to proceed and place a contract with the manufacturers for the design which has already been, approved by most of the committee members and directors. Committee was also instructed to develop a design, somewhat similar, for use on flour sacks. The Committee on Training School reported everything in readiness for the opening on April 18 and approximately twelve students enrolled to date. The committee reported that there would probably be a deficit of $100 in the school budget and the directors agreed to underwrite this deficit. The secretary also reported favorable progress with the Correspondence School for which a dozen students have already enrolled. E. A. Norman made a detailed report of his careful investigation of the bond ing business and after much deliberation it was decided that in view of the diffi culties in the way of forming a bonding company and the very small advantage to be obtained by any society from co operative bonding of employees, it would: be better to postpone action indefinitely. The secretary reported on the nego tiations being conducted by the national office and the Workmen's Furniture- Fire Insurance Society with a view to- procuring from the latter organization affiliation with The League. Tf the Society takes out membership an effort will be made to assist them iii enlarging their membership. Mr. Woodcock made a report on the progress of the national campaign to win for consumers' co-op eratives complete exemption from income tax. Letters have been sent to all the societies in the country on this subject; the various district leagues have filed official petitions for relief, and several hundreds of dollars has been raised to- finance the campaign which will be actively inaugurated in the, very m-ar future. Mr. Regli made a brief report on the work of the Auditing Bureau and sev eral of the delegates present, expressed their appreciation of the service whinb is being rendered by the Bureau. The Editor of the Eastern Co-operator asked for comments and criticisms of the paper as it now appears and a lively and interesting discussion ensued. . This paper in the future will be made a propaganda sheet primarily and the news of official Eastern States business will be circulated among the societies in some other form. Recommendations were submitted by the Board that two joint educational committees be formed, one for the New England territory auo4 one for Greater New York, the first duty of these committees to be that of prepar ing for an adequate celebration of Inter national Co-operators' Day this summer. Representatives of the societies at Fitch- burg, Maynard and Gardner were elected to constitute the nucleus for a New Eng land committee; and delegates from Con sumers Co-operative Services, Finnish Co-operative Trading Association, Co operative Bakery of Brownsville, United Workers Co-operative Association, and Consumers Co-operative Housing were elected to a committee for Greater New York. Although the days were filled with official business, the delegates had some »ood opportunities to get acquainted. The first hour on Sunday morning was devoted to a series of brief reports from the delegates on the work of their respective societies. At noon on Sunday .at the Co-operative Boarding House fifty men and women sat down to tables which were loaded with good things to eat. A photograph of the delegates and their friends was taken on the front steps of the publishing society building in which the meetings were held. It seems to be the universal consensus of opinion that this was by far the most constructive convention we have ever held here, in the East. The new Board of Directors is as fol lows: Otto L, Endres, Utica, N. Y., president; L. E. Woodcock, New York City, secretary; W. Niemela, Maynard, treasurer; Mary E. Arnold, New York, N7iel Kruth. Brooklyn, K. E. Grandahl, Fitchlrarg, A. Wirkknla, Brooklyn. CENTRAL STATES LEAGUE NOTES Peter Moerth, for many years man ager of the successful Union Supply and Fuel Company of Staunton and for sev- cral months at the helm of the illfated ('entral States Co-operative Wholesale Society, has now accepted the position as manager of the Piney Forks branch of the Now Co-operative Company of Dillonvale, Ohio. All co-operators'wel come Pete Moerth back into the move ment after a three years' absence. < . E. Gillins, for seven years manager f>t the Villa Grove Co-operative Society, »as resigned that position to take up the managership of the Bloomington Co operative Society, just vacated by Ray mond E. Uhrie who has resigned because of poor health. Mr. Gillins did remark ably successful work at Villa Grove and Bloomington is fortunate in their new manager. The Villa Grove Co-operative Society has found the discussion in its general membership meetings greatly stimulated by the questions or remarks which come to the question box posted prominently in the store. . Many of the members are making use of this opportunity to pre sent to the membership meeting matters which they consider of importance. NORTHERN STATES LEAGUE The biggest event in the North Cen tral territory during recent weeks was the annual meeting of the Co-operative Central Exchange. In addition to the regular meeting of delegates from the affiliated societies on March 29th and 30th, directors and managers of all the foremost societies in the neighborhood, to the number of two hundred, held a two days' conference on special co-opera tive problems March 27th and 28th. The directors reported total assets of the Exchange as $197,620; $57,397 is capital stock, reserve fund and net gain for 1926. A most detailed analysis of expenses by percentages was submitted. Total expenses came to 10% per cent, which is better than the average figure for private wholesale houses. Gains were recorded for the jobbing and the wholesale departments, to a total of $17,936. Losses were recorded for the auditing, bakery and educational de partment, which brought the net gain down to $11,647.75. In addition to the report of the board, there was a detailed report by the man ager of the sale of new stock to the retail societies and of the various brands and kinds of goods handled. H. V. Nurmi made a report for the accounting and auditing department, and George Halonen reported on the good work of the educational depart ment for the year. All in all, the attendance at the meet ings and the reports rendered show the Exchange in a stronger position than ever before. VII I, 111 96 CO-OPERATION CO-OPERATION 97 Directors' Page 'I' i EDUCATING THE CO-OPERATIVE EMPLOYEES The Directors can formulate educa tional policies, prepare leaflets for distribution, subscribe for co-operative periodicals. The Manager can work on some of the employees, can talk to an occasional customer, can see that papers and leaflets are distributed. But the final intensive and permanent educational work is going to be done by the rank and file employee, if it is to be done at all. He is the front line soldier in the co-operative army. He is the one who is in constant, contact with all the customers, member or non-member. He is the advance guard for co-operative education. After all our elaborate and costly publicity campaigns arc planned, we must rely in no small measure upon the employees for their effective execu tion. Store clerk, delivery man, cashier and girl at the telephone, waiter in the restaurant—these are the best material for conducting our real educational work. Are they equipped to do the job ? Are they themselves educated? This is one of the most vital educa tional problems with which our Move ment has to cope. It has been too much neglected. For several months CO-OPERATION is going to give space to Directors of local societies and to Managers, who will tell the rest of us how they are tackling this baffling problem. We invite all who have seriously faced this situation and tried to meet it to send us the story of their experiences. If the writers .want their names kept confidential, we shall print the letters without signatures. ' The first of tliese letters follows:.. Our Experience with Education of Employees " We have only seven employees be side the manager. Two are drivers of the trucks, four are working behind the counter, one is taking cash, working on the books, taking orders over the phone '' We have tried all kinds of flyer cam paigns to interest the public but we have not seemed to get much results. AYe have tried public meetings also, but very few come to them, even when we offer ice cream or music or other bait. '' Therefore we last year undertook an educational campaign among the em ployees, thinking that if they became more enthusiastic, they would do better educational work among the customers of the store. "We tried two things. First we bought half a dozen books on Co-opera tion, and urged the employees to take them and read them. We have not had very good results. Three of them took books home, one of them taking three of the books during the year. We suspect that one of the other clerks who took a book merely took it to satisfy our man ager and probably never opened it. '' The second method was to hold a meeting of the employees once a month, with Manager and a couple of the Direc tors. We tried to get the workers to raise special problems, to talk about the grievances that customers presented, to offer criticisms or suggestions about serv ice in the store. The first two or three meetings were quite enthusiastic but this enthusiasm has lately petered out. Per haps we did not have the right kind of leadership for the meetings. We are still holding them, but two of the clerks ob ject to " wasting the time" after work ing hours. Perhaps we will have to try something else. '' We should like to know what experi ence other societies have had. We need some good ideas. F. .S., President, X Co-operative Society. THEY'RE ALL CO-OPERATORS,—workers in the factories at WINCHENDON, MASS. Situ ated up in the wooded hills near the New Hampshire border this co-operative looks as though it were off in the wilds of Northern Maine or Minnesota,. As a, matter of fact, it was near enough Fitchburg to send a car load of delegates to the Eastern States Convention there on April 3rd. CAN AGRICULTURAL COLLEGES ORGANIZE CO-OPERATION? The agricultural colleges are supported by taxation of all the people, not by farmers alone. In a clash of economic interests, therefore, they cannot stand boldly on the farmers' side. There is no clash of economic interests in improved soil culture or better feeding of live stock. But the moment the members of the staff of an agricultural college take a hand in co-operation they are in hot water. Tley would have all the chambers of com merce on their backs, and their appropria tions would be threatened. Farmers cannot expect the men on the staffs of agricultural colleges to stand boldly for thoroughgoing and uncompro mising co-operation. When they go out among farmers to talk co-operation, they are perforce timid and hesitating, or deal in generalities. Their influence, in spite of what they may inwardly feel,(is on the side of hybrid programs and to neutralize straight-out farmers' co-operation. That this is not theory is obvious to anyone who has observed the activities of the agricul tural colleges in the last half dozen years. For these reasons, instead of urging or asking the agricultural colleges to help build co-operative enterprises, we would be quite satisfied to see them keep entirely out of the co-operative movement, and frankly take a neutral stand in the clash of econo mic interests—helping neither farmers nor business men. Let them teach both sides and all sides of these questions on the campus, but keep out of the fray in the field. Farmers should draw upon the agricul tural colleges for every bit of knowledge they can give. But in the field of ex change, where the interests of one class run counter to the interests of another class, we must direct the use of this knowledge ourselves. All that we have said here applies with equal force to the national Department of Agriculture. We cannot reasonably expect men employed by insti tutions supported by all the people to be leaders on the side of one group of people. L. S. HERRON, Editor, Nebraska Union Farmer. 98 CO-OPERATION CO-OPERATION 99 Correspondence File MORE ABOUT PROFITEERING Editor Co-operation: Your magazine for March is here aud I am interested in your article on Profiteering by Co-operatives to the benefit of members at the expense of non-members. Our Camden Farmers Union keeps all profit made on non-members and invests it in the business to the benefit of all who may ever become or are now members. In that way we have added several thou sands of dollars to the surplus. We are slowly trying to improve our book keeping practices and I am wondering if I could learn anything from your courses that would help us. Our .manager and treasurer has aii old-fashioned way by which he keeps our Fuller Brains: '' Say, M. T., they tell us the Bondward Bread Trust is making a drive to get a monopoly on the bread business in this county. See that sign over our window? That says something ! It means we 're going to show these birds we co-operators can run our own bread business. Can we do it, Dome? Will you join up to protect your own interests and the interests of your neighbors? M. I. Dome: No, Sir, I '11 not buy any share of stock in your co-op bakery and I'll not eat your co-op bread. Too many foreigners in your organization. The President of the Bond- ward Company helped build the largest church in the state and he says he believes in putting the American flag on every bread wrapper in «very American home. I'm an American, not a bolshevik, and I '11 eat American bread every time! accounts very correctly even to a cent. But when the Directors wish information it is hard for him and impossible for me as president to give quick and correct information. Our directors have come to the conclusion that the only safe way to run the business ia for us to know more about it. Last season I introduced the use of a Stock Ledger as used by the co-ops near Superior, Wis. It had to be modified a little but they think it fine here in our business. We have now voted to have a tabulated order book, where all orders and deliveries are plainly kept. Tins is to help us study the fluctuation of grain prices, etc. Yours truly, Camden, Maine LEON 0. CROCKETT. Statement of the Ownership, Management, 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. 1927. State of New York, County of New York, ss.: Before me, a notary public in and for the State and county aforesaid, personally ap peared J. N. Perkins, who, having been duly sworn according to law, deposes and says that she is the business manager of Co-opera tion, and that the following is, to the best of her knowledge and belief, a true statement of the ownership, management (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 managers are: Publisher, The Co-operative League, 167 West 12th St., N. Y. C.; Editor, James P. Warbasse, 167 West 12th St., N. Y. C.; Managing Editor, Cedric Long, 167 West 12th St., N. Y. C.; Business Manager, J. N. Perkins, 167 West 12th St., N. Y. C. 2. That the owner is: The Co-operative League of U. S. A., 167 West 12th St., N. Y. C.; J. P. Warbasse, President; H. I. Nordby, Vice-President, 2801 Washington Ave., N. Mpls.; Cedric Long, Secretary, 167 W. 13th St., N. Y. C. 3. That the known bondholders, mortgagees, and other security holders owning or holding 1 per cent or more of total amount of bonds, mortgages, or other securities are: None. J. N. PERKINS. Sworn to and subscribed before me this 25th day of March, 1927. (Seal) " SIDNEY BENJAMIN. (My commission expires March 30, 192S.I NEW CO-OPERATIVE DEMOCRACY Second Edition completely revised by JAMES PETER WAflBASSE President of The Co-operative League of the United States of America Member of the Central Committee of the International Co-operative Alliance A Discussion of the Consumers' Co-operative Movement In Its Relation to the Political State, to the Profit System, to Labour, to Agriculture and to the Arts and Sciences "We hope Dr. Warbasse's book will find readers throughout the world" G. J. D. C. Goedhardt, President International Co-operative Alliance MACMILLAN & CO., New York, Publishers ORDER FROM The Co-operative League, 167 West 12th St., New York, U. S. A. Price, $1.50. The Co-operative Union, Holyoake House, Hanover St., Manchester, England. German Edition: Verlagsgesellschaf t deutscher Konsumvereine, Strohhause 38, Hamburg, Germany. Price, 6 marks. STUDY CO-OPERATION AT HOME Correspondence Courses prepared and ad ministered by experienced co-operators are now ready 1. Elementary English 2. Commercial arithmetic 3. Bookkeeping for Co-operators 4. Advanced Course in Bookkeeping 5. Principles and Theory of Co-operation For full particulars write THE CO-OPERATIVE LEAGUE 167 West ISfth Street New York City The Canadian Co-operator Brantford, Ontario, Canada The organ of the Canadian Co-o«era- tive Movement, owned by and cor • ducted under the auspices of The Co-operative Union of Canada. Published monthly 75c per annum "The Co-operative Pyramid Builder" Official Organ of Co-operative Central Exchange is a snappy, live co-operative magazine. Get in line! Subscribe NOW Subscription price 50c a year. CO-OPERATIVE CENTRAL-EXCHANGE Superior, Wis. 100 CO-OPERATION III PUBLICATIONS —OF — THE CO-OPERATIVE LEAGUE HISTORICAL Per Copy Per 100 .10 .05 .05 3. Story of Co-operation ............. $ .10 7. British Co-operative Movement..... .10 38. Consumers' Co-operative Movement in U. S., 1926................. .10 6.00 39. Consumers' Co-operative Societies in N. Y. State (Published by Con- sumers' League ................ 59. Co-operative Movement in Europe.. 64. Progress of Co-operation in United States. ..................... TECHNICAL 4. How to Start and Run a Rochdale Co-operative Society ............ .10 5. System of Store Records and Accounts................... .50 6. A Model Constitution and By-Laws for a Co-operative Society........ 8. Co-operative Education. Duties of Educational Committee Denned... 9. How to Start A Co-operative Whole sale ........................ .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 15. How to Organize a District Co-opera tive League ................... .10 29. Credit Union Primer (By Ham and Robinson). . . . . . . ............ .50 43. Co-operative Housing ............. .10 50. A B C of Co-operative Housing.... .10 51. Model Lease for Co-operative Apart ment House ................... $6.00 6.00 4.00 4.00 4.00 .05 2.50 .10 1.00 .10 MISCELLANEOUS 16. Model Co-op State Law............ .10 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 33. Credit Union and Co-operative Bank .05 13. The Place of Co-operation Among Other Movements .............. .25 34. Co-operative Movement (Yiddish).. .02 1.25 30. "When the Whistle Blew" (Story, by Brace Calvert) .............. .06 65. Reading List on Co-operation....... .10 66. International Directory of Co-opera tive Organizations .............. .35 41. Social Aspects of Farmers' Co-opera tive Marketing (By Benson Y. Landis). .................... .25 42. Co-op Homes for Europe's Homeless .10 53. Real First Aid for the Farmers.... .05 55. A Better World to Live In........ .05 57. How a Consumers' Co-operative Dif fers from Ordinary Business. .... .02 .60 60. The " Moral Equivalent " of Jazz... .02 62. Buttons (League Emblem in 3 colors) J4 inch diameter........ 3.00 63. Sign or Transparency of League Em blem. Green and gold, 8 in. diam.. .25 15.00 ONE-PAGE LEAFLETS (One Cent each; 50 Cents per 100; $2.50 per 500; $4.00 per 1,000.) (1) Principles and Aims of The Co-operative League; (20) Why Loyalty Is Necessary; (21) Cost and Crime of Credit; (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 Education 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; (49) A Way Out; (61) Co-operation Brings Disarmament. MONTHLY PUBLICATIONS CO-OPERATION—(In bundle lots, $7.50 dred). SubscriDtion. ner vear... INTE: BOOKS The following books are recommended as containim the best discussions of the modern Co-operative Move! ment. They may be ordered through The League: Bergengren, Roy F.: Co-operative Banking, A Credit Union Book ..................... Blanc, Elsie T.: Co-operative Movement in Russia . . . . . . . ....................... Brightwill, L. R.: Animal " Co-op " Book—For Children. . . . . . . ..................... Faber, Harald: Co-operation in Danish Agricul ture, 1918 ............................. Flanagan, J. A.: Wholesale Co-operation in Scotland, 1920 ......................... Gebhard, Hannes: Co-operation in Finland, 1916 Gide, C.: Consumers' Co-operative Societies American edition and notes, 1922. Cloth.. Hall, Prof. Fred: Handbook for Members of Co operative Committees ................... Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Paper bound........ Holyoake: Rochdale Pioneers ................ Howe, Fred C.: Denmark, a Co-operative Com. monwealth, 1921 ....................... Jessness, O. B.: Co-operative Marketing of Farm Products ......................... Madams, J. P.: The Story Retold............ Mears and Tobriner: Principles and Practices of Co-operative Marketing................ Nicholson, Isa: Our Story................... Oerne, Anders: Co-operative Ideals and Problems Owen, Robert: Autobiography .............. Poisson, E.: The Co-operative Republic....... Potter, B.: Co-operative Movement in Great Redfern, Percy': The 'story'of the'c.' W.' S.'.'.'.'. Redfern, Percy: The Consumers' Place in So ciety, 1920 °............................. Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918 ........................ Smith-Gordon and O'Brien: Co-operation in Denmark. . . . . . . .................... Smith-Gordon and O'Brien: Co-operation in Many Lands, 1920 ..................... Stolinsky, A.: The Co-operative Movement. (In Yiddish). ............................ Warbasse, J. P.: Co-operative Democracy, 1927.. Warne, C. E,: Consumers Co-operative Move ment in Illinois ........................ Webb, B. and S.: The Consumers' Co-operative Movement, 1921. Board, $2.00; cloth..... Webb. Catherine: Industrial Co-operation, 1917. Woolf, Leonard: Co-operation and the Future of Industry ............................ Woolf, L.: Socialism and Co-operation........ Co-operation in Great Britain and Ireland, paper CO-OPERATION, Bound Volumes, 1915 to 1925 inclusive, each .......................(.. Transactions of Second American Co-operative Congress, 1920 ......................... Transactions of Third American Co-operative Congress, 1922 ......................... Transactions of Fourth American Co-operative Congress, 1924 ......................... Northern States Year Book. 1926. Paper....- The People's Year Book, 1927. Cloth, $1.00; paper bound ........................... (.Ten cents postage should be added for all $3.00 2.50 .15 2.75 2.00 2.00 2.00 2.00 .60 1.00 2.00 2.50 .50 3.20 .25 1.25 .50 1.75 1.00 2.00 1.00 LOO 1.00 1.50 l'.SO 3.50 S.OO 1.SO 1.00 1.SO .25 1.00 1.00 V __ ooreuwno A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in voluntary association, produce and distribute for their own use the things they need. Enured as Second Ctess ratter, *>««*£». W7. « Published Monthly by THE CO-OPERATIVE LEAGUE 167 West 12th Street, New York City J. P. WARBASSE, Editor • ficc at New York, N. Y., under the Act of VOL. XIII, No. 6 JUNE, 1927^ .. 10 CENTS 102 CO-OPERATION Co-operation at Hinton, West Virginia CO-OPERATION 103 The town of Hinton, a railroad junc tion point, has a population of less than five thousand and co-operation is bene fiting almost every man, woman and child in the community, either directly or indirectly. In 1919 members of the Railroad Brotherhoods organized the Hinton Co operative Mercantile Company, Inc. and opened a store in the center of town for the sale of groceries, meat, shoes and dry goods. At the time the store was opened, a survey of private business in the city showed that all stores were get ting an averge gross profit of 28 per cent. The co-operative from the beginning op erated on a gross profit of 18 per cent and this competition forced all the private stores to reduce prices. Amateur statisticians in the co-operative society estimate that in that first six years alone the co-operative saved the people $240,000. From the first month of business up until April 1924, the co-operative forged steadily ahead. On April 3, of that year a fire broke out and burned the building to the ground and destroyed its entire contents. During the four months while a new building was being erected, the co-operative moved to the outskirts of the town and sold groceries only. In this brief absence from the business center a Piggly-Wiggly store, a Woolworth store and five private stores came in to get the trade which had gone to the co-operative. On its return to the business district, in the late sum mer of 1924, the railroad men's store had to replace at least one-third of its busi ness with new customers. The sales for the past three years were as follows: 1924...... $171,000 1925...... 181,000 1926...... 177,000 The statement of Assets and Liabilities at the opening of 1927 shows that the company owns a building worth $34,816; has merchandise inventory of $23,208; accounts receivable of $19,177; furni ture and fixtures of $7,696; and other assets making a total of $91,150. The capital stock and surplus and net gain on 1926 sales total $64,554. A $10,000 mortgage stands against the building and accounts payable amount to $15,283. The officers boast that their store is one of the finest, neatest and best kept in town, that they handle only the best of goods favoring union made products whenever possible. The store itself is 50 feet, by 75 feet and the wareroom in the rear 25 by 50. The second floor has dimensions of 50 by 50 and the entire building is thoroughly modern in every respect. A statement issued more than a year ago shows that the average member owns $50 worth of stock on which he receives 8 per cent interest. The average pur chases per member are $600 per year. One of the unique features of the store is a special cash and carry department where goods are sold five per cent cheaper than in the regular department. They have dubbed this the "U-SAVE- IT." One of their co-operative propaganda leaflets contains the following: WHY BOES THE C. & 0. USE SUCH BIG ENGINES? Because the bigger the load the less it costs to haul it and the more profit they make. WHY BO WE WANT MOEE, MOEE AND MOEE BUSINESS? Because the bigger the business the less it costs per dollar of sales to run and the more profit we make and the more we save our customers IF What you say about 'Co-operation is TEUE Why is it that everybody does not join? WE BON'T KNOW C. E. Glass is the name of the presi dent carried on "the engraved letterhead; S. R. McLean is vice-president; W. L. Wilson is secretary and C. L. Barnette, treasurer. The hustling and efficient manager is R. L. McKinney. The other directors are W. M. Daugherty, W. L, Burke, D. E. Sites, J. H. Glass, G. H. Phillips, S. W. Gwinn, I. N. Meador, and E. T. Miles. Vital Issues TOTEM POLE ECONOMICS Up in the Arctic Region, the natives set up what they caU a totem pole. It is the thing they worship and to which they pay homage. Then each Eskimo goes his way and attends to his own business. The totem pole stays where they put it. It does not meddle with their affairs. Great Britain and many of the most advanced countries of the world do the same thing. The British call their totem pole, King. The King lays cornerstones, visits hospitals, gives teas, sets the style for men's pants, and does other innocent things; but he does not interfere with the great current of economic events. Economic affairs are governed by their own laws. Just as soon as outside forces interfere, look out for trouble! When ever the politicians, the government, or the State attempt to influence economic events, somebody gets hurt. Why is it that there is uncertainty and worry so long as Congress is in session? As soon as the congressmen clear out of Wash ington and go home, people breathe eas ier and business goes on more smoothly. The reason is that politics is the result of the economic forces and there fore should not attempt to control or cause economic changes. For the water to try to get on top of the oil just mud dies up the contents of the jug, but it does not stay settled till things get back where they belong. We are now enjoying the most pros perous period this country has ever seen. Much credit for this prosperity is due to Mr. Coolidge. We now have a Presi dent who does not attempt to meddle with business or the economic affairs of the country. He leaves them alone. Result: business goes along happily, labor has better conditions than ever in our history, and the economic life runs smoothly. The best kind of a political head for any country is a quiet head, a cool head, a blockhead, a head that keeps its place between the shoulders, and does as little as possible. Mr. Coolidge puts his ear to the ground and listens to the hum of the economic current. When he moves, he moves in the direction it is moving. He tries to find out which way business is going, and he goes along with it. That is a good kind of a president for any country to have. The dangerous sort of a political head is a man of ideas, ideals, and action. With a man like Cleveland, Roosevelt, or Wilson in the White House, panic, war, or hell-and-blazes may be expected at any time. Men with ideas and schemes for social changes make trouble. The mass of people, the workers, to whom the economic life is a deadly seri ous matter, understand this. That is the reason they refuse to vote for such men as Debs and LaFollette. They are afraid to have political officials meddle with the sensitive machinery that gives people their bread and butter, clothes, and homes. They cannot afford to take any chances. The idea that economic changes can permanently be affected for the good by political agencies is a fatuous theory that resides in the minds of reformers, social ists, and politicians, and which is being disproved every day in every country in the world. The important people are the business people. They, not the politicians, will decide whether war is to be stopped; they will give politicians their orders; they will decide the questions of capital and labor; they are the people who have their hands upon the machinery that supplies food, clothing, and housing. If the people are seriously concerned about their social lives, they will go into busi ness—rather than into politics. And when the people go into business actu ally to take a hand in supplying their needs, there is no limit to what they can do for themselves. These are the reasons why a totem pole would make a good president, and why the International Co-operative Con gress, to be held in Stockholm in August, is more important than the League of Nations sitting at Geneva the year round. 104 CO-OPERATION CO-OPE EAT ION 105 PRODUCERS WOT CO-OPERATIVE "In accordance with the amended Rules adopted in 1921, the admission to membership into the Central Union of German distribution societies is limited to consumers' societies. The small group of work and other societies (labor, pro ductive, etc.) is steadily decreasing." These words are the first paragraph of the 1926 report of the German Central Co-operative Union published in the International Co-operative Bulletin, April, 1927. It is an interesting fact that the theorists, who in the early days of Co-operation attempted to guide the movement, believed that co-operative societies should be profit-sharing organ izations of workers, producing things to sell, for profit. The International Co operative Alliance founded in 1892, was organized by men who still held this old theory. Gradually, in the laboratory of actual experience, the unsound economics have been precipitated out of the co-operative movement. Gradually the consumers' societies increased and the producers' societies decreased, until now the co operative movement has become an organization of consumers who produce for use and not for profit. Germany to-day is far in advance in co-operative efficiency. It is natural that in Germany we should find that, as long ago as 1912, producers' societies were excluded from membership in the National Co-operative Union. J. P. W. I THE WAR RESISTERS' LEAGUE Since the Great War there have been scores of movements in all countries to enlist great masses of men and women in various unions or leagues to oppose fu ture wars. This concerted effort has finally resulted in a well integrated War Eesisters' International. The War Re- sisters' League is the expression of this sentiment in the United States. Every one belonging to the organization gives a pledge that he "will never take part in war, offensive or defensive, interna tional or civil, whether it be by bearing arms, making or handling of munitions, voluntarily subscribing to war loans or using his labor for the purpose of setting others free for war service." Doubtless this is an excellent move and will be supported by thousands of people who still remember vividly the war which was in progress ten years ago. In fact we personally know many men who have signed any number of such pledges since 1918. Interest in this kind of thing will however grow dim as those of us who lived through the last war grow older and our places are taken by young men and women to whom the Great War was only one more chapter in the books of historians. And even for the rest of us pledges are no more than pledges. Most men who are so weak that they have to bolster up their courage with oaths and pledges cannot be depended upon when a real emergency arises. It is significant that most of the conscientious objectors to participation in the World War were men who had taken no such pledge. To be quite frank, we are a bit suspicious of the individual who tries to impress us with what he is going to do when some kind of an emergency arises. The strength which is born of deep conviction and true self-confidence is not the kind of strength which "tells the world" it is going to be brave when the time for bravery comes. The one real service such a League may render is, then, the throwing of a scare into our politicians who spend so much of their time trying to pick a quar rel with other countries. In fact, this new pledge being signed by members of the War Resisters' League, is to be pre sented to the President on Armistice Day, 1927. We wonder, however, if even Mr. Coolidge is not canny enough to recognize the hollowness and futility of such organized promises of resistance to war; he should by this time know how to recognize in others the weakness of reso nant phrases which he himself so often utters and as often repudiates when a little pressure is brought to bear upon him. No, we have much more confidence in the men and women who are busy con structing an economic system which re moves the incentives to international or civil war. Co-operators are gradually putting into the world of business a new motive of Service to supplant the old Otjve of Profit. That fact is a greater which creates war. Let us by all means ledge of Peace than all verbal oaths of sign any such pledge as appeals to us; 11 the sentimentalists in the world, espe- but let us not be content with the mere . -ajjy when these sentimentalists are signing of pledges. active participants in the profit system C. L. The Nature of Co-operation By PROFESSOR V. TOTOMIANZ Before beginning to analyze the na ture of Co-operation, let us first see what Co-operation really is; let us consider its economic and social nature and the origin of this important social phenom enon, which at the present time pre occupies so many distinguished and outstanding European minds, and which everywhere plays a very large part in economic life. Forerunners of Co-op&ration The origin of Co-operation is rather recent. Though we can say that in the Middle Ages there already existed asso ciations resembling co-operative organi zations, these associations did no more than resemble them. In some of their functions, however, the mediaeval cor porations did resemble the co-operative societies of 'our times. Thus, for in stance, they used to buy conjointly, like our modern co-operative stores, for pur chase and distribution. In other re spects these corporations were totally unlike co-operative associations. The corporation was a compulsory organiza tion to which all had to belong, and from which none could retire; it was com pulsory for all artisans. Co-operation is a free union; it can be joined and left at one's free will, provided certain for malities are observed. In following the course of historical This is the first instalment of a long article written hy prof. Totomianz for The Co-opera te Offifial. Other instalments will follow in succeeding numbers of CO-OPERATION. events we find that in the Middle Ages a kind of association appears which comes nearest to Co-operation, i.e., the associa tions of workmen-builders in Italy, the associations of cheesemakers in Switzer land, in Italy, and in Prance, and the associations of fishermen and of hunters in Russia. The church-building associa tions of masons of Italy frequently went working abroad, even as far as Russia. Several orthodox churches, and even the Kremlin of Moscow, were erected by such associations, whose organization enabled them to conqiier distance, and who have left most beautiful works of art behind them. The associations of the Russian hunters and colonists have played a still more considerable part in history. In his book, "Mutual Aid: A Factor of Evolution," Prince Kropotkin attributes the conquest of Siberia to these very associations. This is true in a way, as a great number of the associa tions of hunters who went to Siberia in search of furs settled there, and thus populated the country. Crimea and even Southern Russia have been in a large measure populated in the same way. These associations were primitive organizations. They were formed only for certain limited purposes, and had no commercial undertakings of their own, like the real associations for production. To-day, associations of this kind are called labor associations, and represent an intermediate state between the trade unions and a co-operative society. (To "be continued.} 106 CO-OPERATION CO-OPERATION 107 Foreign CO-OPERATIVE PROPAGANDA CAM PAIGN IN GREAT BRITAIN Tn February there was held through out Great Britain a massive propaganda campaign, plans for which had been go ing on for many months previous to the campaign itself. Societies in almost every part of England and Wales took part and the Scottish societies are or ganizing a similar campaign for later in the year. Approximately 550 societies actively participated in this event,—among them all of the larger societies. Fifty thou sand large posters were supplied by the press agency of the C. W. S. and each poster somewhere bore the slogan "Join the co-operative stores: Do it now." Three hundred daily and weekly news papers carried display advertising of the co-operative movement, some of. which was inserted by the 'C. W. S. and some by local societies. Twenty-five million leaflets prepared by the Co-operative * Union and other agencies were distrib uted from house to house. In many cities and towns a campaign was organ ized whereby -each housewife was called on for eight successive days by members of local propaganda committees who left at every visit a new leaflet with the householder. Public meetings were held in nearly all the principal cities and towns and the speakers were members of the Cen tral Board and officials of the Co-opera tion Union, Directors of the C. W. S., co-operative and labor members of Par liament, and leaders of the International Co-operative Alliance. Community sing ing was prominent at most of these meetings. Between three and four hundred so cieties took part in a huge national co operative window display contest and hundreds of photographs of these public window displays are being collected by the Co-operative Union before the dis tribution of 160 prizes takes place. The complete results of this campaign are not yet known. The Worcester so ciety gained 400 new members. The Burton-on-Trent Society gained 650 members and the Derby Society 200 members. It is probable that upward of 10,000 new members were added to the movement during that one month and sales of the co-operative stores have increased noticeably. It is safe to say that the co-operative movement has never before received such publicity throughout England and Wales. COLLABORATION OF CONSUMERS AND AGRICULTURAL SOCIETIES IN SWEDEN The farmers' co-operative marketing movement in Sweden has developed very well so far as the local associations for purchase, processing, and sale of agri cultural products are concerned. On the other hand they are very backward when it comes to the organization of central associations. The co-operative dairies have been best federated so far and they market more than two-thirds of the country's milk supply. Second in im portance only to the dairies are the co operative butcheries of which there are 20 in the country with a total member ship of 46,000 farmers. Most of their production is for export and therefore they sell very little to the consumers' societies. There are approximately 270 Societies for the Sale of Eggs. Meanwhile the Kooperativa Forbim- det, which is the strong central organ ization for all the consumer societies, has to purchase cereals, hay, meat, bacon, eggs, potatoes and other farm products. As there is no single central marketing association with which to deal, Koopera tiva Forbundet has to buy as best it may, usually from local marketing associa tions. On the other hand the local con sumers ' societies also buy these products in large quantities from local farmers associations. The Stockholm Consumers' Society is under contract to purchase the whole of its milk requirements from the farmers milk association and also buys all of its butter, cheese and eggs from such pro ducers ' organizations. j\ll in all, the relation between the consumers' and the agricultural societies is excellent, although the very close col laboration which should obtain proves to be impossible because of the failure of the farmers' societies properly to federate. VISITORS FROM UKRAINIAN CO-OPS A delegation from the Ukrainian Co-operative League (" Vukospilka "), which runs a group of 14,060 stores in the Ukrainian Soviet Republic, has arrived in this country to study Amer ican distribution methods. The members of the delegation are making a first-hand study of methods of some of the larger department stores and chain stores of New York under the guidance of officers of the Centrosoyus, the American trading agency of Soviet T'nion co-operatives. Later they will start a month's tour of other American cities, their studies to include large bak eries, chain restaurants, packing houses, 5 and 10-cent stores, canning factories, warehouses and distributing offices. The Commission expects to place orders for warehouse and office equipment here. The three members of the Commission are M. I. Dykhne, vice-president of the "Vukospilka," U. M. Ivanitzky and A. X. Makarov. " FASCIST " CO-OPERATION The high commissioner of co-operation under Mussolini's government has re cently rendered a glowing report to his Prime Minister extolling the progress of the Fascist League of Co-operatives. He claims that the "Bute Nazionale delle Cooperative" consists of 4000 societies of which 1800 are consumers', 1130 are producers', 307 agricultural, 350 rural savings banks and 180 societies for the construction of cheap houses. Mr. Al- fiere, the commissioner, does not state in his report that practically every one of these societies was built up under the auspices of the Lega Nazionale delle Co operative, which is now under the ban of the Fascist!. Although "La Cooperazione Italiana" organ of the original National Co-opera tive League, has now reappeared in a much abbreviated form, its publication even as a single sheet, has been attended with great difficulty. The editor is not alloy, ed to deal as he wishes with eco nomic matters and the co-operative so cieties which come under the new Fascist commissioner are forbidden to distribute it among their members. The distribu tion of this paper, even to co-operators in foreign countries is severely restricted by police and the post office censorship. News and Comment WILLIAM ROSE, A CO-OPERATIVE PIONEER In Trenton, Mich., there lives one of the genuine pioneers of the British Co operative Movement. William Rose, now eighty-four years of age, with a very small group of his friends, organ ized sixty years ago, the Royal Arsenal <- o-operative Society which to-day is one of the outstanding monuments of the co-operative movement in Great Britain, having upward of 150,000 members and a total capitalization of eight and a half million dollars and operating 1400 stores ror the sale of food, clothing, furniture, ?nd almost every other conceivable Household necessity. The society also owns 2400 houses and flats. The return to members in 1926 on purchases was 7 per cent. In addition to doing a very large housing, banking and distributive business, the society operates a great many factories for the production of the goods which it sells. William Rose was one of those early workers in England who turned away from the influences of religion and began at an early age to study the natural sciences under the influence of Thomas Huxley, John Tyndall and Charles Dar win. To-day he says: "I had thought of religion, but saw it could never satisfy my needs. It was not that I saw religion as a force to be 1 I I ,1 108 CO-OPERATION CO-OPERATION 109 opposed—I felt no animosity toward the church or its teachings—but merely that I saw my path lay in another direction. At the age of twenty-five I was a con firmed agnostic, and have remained so to this day. "With the realization of that came the renaissance of my life. I had to do something for the progressive happiness of my fellow men—find something to take the place of religion. And finally the idea of consumers' co-operation came to my mind and grew there. "When I look at the society I began, in the light of what it has accomplished, the day in 1868 when 17 men and myself gathered in my house to formulate our first plans seems unreal. We had so little to start on that some of the charter mem bers thought the experiment was foolish. I gave the first half-crown that went into the treasury, and out of what was collected at that first meeting we were able to buy a chest of tea. A week later we bought 100 pounds of sugar, and then two crocks of butter. These we sold in a small room I had used as a work shop. "At the end of the first year we had 47 members and a total share capital of about $150. We had only two rules be side that of honesty-^that the value of each share should remain at one pound, and that no number of shares would entitle a member to more than one vote.'' Mr. Rose was the first secretary of the Royal Arsenal Society, having refused the office of president. Ten years after he and his friends had started this co operative, the employment situation compelled him to migrate to America and he has been in Michigan now for fifty years. Meanwhile his portrait hangs on the central wall of the head quarters of the society in Woolwich. Mr. Rose himself leads a quiet life among his flowers. His philosophy is summed in the following paragraph: "The co-operative era is upon the world. You see it evidenced everywhere, particularly in industry and business. It is now sweeping the farming districts of the world. Producers' co-operation is a necessity of present-day civilization, but without its complement, consumers' co-operation, it may well be a force for evil rather than good." EXCELLENT CO-OPEEATIVE BANKING LAW PASSED IN IOWA The Iowa legislature, without a dis- senting voice, has recently passed a law enabling farmers or workers to organize genuine co-operative banks. Some Of the important features of the bill are as follows: Any fifty or more persons residing in the state may secure a charter for the organization of such a co-operative bank. Par value of shares of stock shall be not I less than $10 and interest on such stock shall never exceed 8 per cent. A heavy fine is imposed upon any banking, partnership or group not or ganized under the provisions of this act which uses the words "co-operative bank" in its name or is so designated in its function. With the apparent purpose of fore stalling possible criticisms by the state banks, a rule is made that no charter shall be issued until such co-operative bank has had subscriptions for stock equal in amount to the capitalization re quired for a state bank in the territory where such a co-operative bank is to be located. However, the co-operative bank is authorized to enter all fields of busi ness open to regularly incorporated state banks. It may accept deposits, make loans, and invest its funds in the manner and ways granted to state banks. An unusually interesting feature of the bill provides that after the 8 per cent has been declared and a surplus has been created equal to half the capital stock, the remaining net earnings may be dis tributed or credited to the depositors and borrowers of the bank (provided they are stockholders) in proportion to the amount of interest received and ac crued to the depositors and the amount of interest paid by the bank against the obligations of the borrowers. A further very interesting provision for disposal of the funds in case of liquidation safeguards the co-operative principle and prevents the stockholders from dividing up the surplus in propor tion to stockholdings. In the event oi liquidation all capital stock shall be re deemed at par together with accrued dividends. All other assets of the bank shall be distributed to the depositors and the borrowers who are then stockholders t the same proportions as are provided for the distribution of profits annually. The banks shall be subject to close supervision by the Department of Bank ing and shall make regular reports on blanks supplied by the Department. Control of the organization shall be strictly democratic, each stockholder having only one vote regardless of the number of shares of stock he may hold. The membership specifically has the right to overrule the board of directors on any question of interest to the corpo ration and may amend the by-laws by a three-quarters vote by those present at meetings. Proxy voting is permitted. Each director shall own the minimum of fifty shares of stock. No member of the board of directors shall receive any com pensation for his services as a member of said board unless such compensation has been authorized at a stockholders' meeting. People throughout the country who are interested in the development of co operative banking will watch the move ment in Iowa with great interest. Without a shadow of doubt Senator Smith W. Brookhart is one of the chief influences behind the passing of this law. ANOTHEE LAEGE FAKE CO-OPEEATIVE? Decimo Club, Inc., is the name of a new organization operating in several sections of the country, claiming to be a joint buying society. Invitations to join are extended personally and all the de tailed plans of control, financing, etc., are kept secret. Each person who enters agrees to pay $20 initiation fee, $2 a month dues and $3 a month for service —$80 in all for the first year. At the beginning one is permitted associate membership only and must prove his value to the organization before he be comes a full member. Promises are made that distinct ad vantages will be gained from joint pur chases, that loans will be made to further the private business projects of the members, and through other mysterious sources the members will, after a year or so, get a return of something like $50 a month on their investment. No litera ture is given out and members are taken in at the large meetings which are held. The entire scheme is sold as '' co-opera tive." Promoters of the scheme say that it has swept Los Angeles with more than four thousand members who have invested upward of $300,000. In Pitts burgh it is also going strong with meet ings being held in the large Soldiers' Memorial Hall, one group of members bringing in a larger group of members each meeting. Other branches are being launched in Detroit, New York and simi lar large cities throughout the country. Such literature as may be obtained by those who attend the meetings contains no statement of the people who ulti mately control the destinies of the organization. The following are copies of two of the documents which are to be signed by members or by applicants for member ship. The second is an agreement which is to be signed by members of the group who wish to take advantage of the pur chase and sales service : .District Number Located at. DECIMO CLUE, INC. APPLICATION FOR MEMBERSHIP I have read the notice of organization of the Decimo Club, Inc., and sincerely believe that membership therein can assist me in bettering my financial condition and provide opportuni ties for advancement beyond my own powers. I believe in the theory of an organized group having infinitely more power to achieve results than an individual working alone and unaided. I am willing to work hard to achieve success and it is my intention) to remain in this com munity and establish myself here. I am in a position to pay the initiation fee of twenty dollars and the monthly dues of two dollars, dues to foe paid at the monthly meeting of the club, which I hereby agree to attend without fail and understand that failure to attend or non-payment of dues will subject me to losing my membership without recourse of any nature against the Organization, as will also causing dissension in the club. I understand the neces sity for secrecy of the plans of the club and promise faithfully to so keep them and all other information. I understand that the ini tiation fee is to be used entirely for building up membership and the dues are for economical current expenses and hereby assent thereto and will sustain this procedure. Ill 110 CO-OPERATION CO-OPERATION 111 I am vouched for by Mr. .................. I hereby make application for ASSOCIATE MEM BERSHIP is THE DECIMO CLUB, INC., and agree if elected to abide by its constitution and by-laws. Signature .................. Voucher ........... Approval ........... Date ............... Date .............. (On reverse side) Name, business address, residence address, occupation firm, telephone numbers, District numbers. APASCO PURCHASE AKD SALES CORPORATION SERVICE APPLICATION I hereby make application for purchasing service to be rendered by the APASCO PURCHASE AND SALES CORPORATION under the following conditions: 1. All requisitions for purchases to be placed at the monthly meeting of the Decimo Club, Inc. (emergency items excepted) and orders covering said purchases to be available for my use at the office of the said APASCO PURCHASE AXD SALES CORPORATION during the month of said meeting on all materials covered by arrangement (I have knowledge of such materials). Other materials to be purchased at best price possible. 3. Emergency requisitions to be filed at office of said APASCO AND SALES CORPORATION subject to delivery date available. 3. All delivery dates to be considered from point of economical purchase in quantity lots unless waived by me to secure quicker delivery. 4. I agree to pay for such service the sum of three dollars a mouth at the meeting of the DECIMO CLUB, IKC., referred to above. 5. The above rate terminates (date not specified). 6. I certify that I am an associate member of the DECIMO CLUB, INC., in good standing and agree that loss of such membership can cels this agreement automatically. Date .......... Signed .................. (On reverse side) Xame, business address, residence address, D. C. member number, approved, telephone numbers, record, date, and monthly record of purchases. Since' the foregoing was put in type, word comes from Pittsburgh to the effect that organizers and officials of Decimo Club are being ordered to cease activities pending an investigation by the depart ment of public safety. A similar inves tigation is being made in New York City. CO-OPERATIVE AUTOMOBILE SERVICES, INC. A grotip of co-operators in Brooklyn most of them members and officials of the Finnish Co-operative Trading Asso ciation, have purchased a tract of land and are erecting a two-story co-operative garage. These people are incorporated tinder the Co-operative Law of New York State for $50,000. No member may own more than 40 shares of stock nor use more than one automobile space, and rent or sale of such stock is strictly under the control of the Board of Direc tors. Co-operative organizations, such as the Finnish Co-operative Trading Assn., may have the right to purchase and own additional shares of stock, up to 40 per cent of the total and the privi lege of additional automobile space in proportion. Twenty-five per cent of the earnings are to be placed in a reserve fund each year; 5 per cent is to go into the educa tional fund, and the balance is to be returned to the consumer members in proportion to their patronage. A great many of the Finnish and Scandinavian co-operators have automo biles-and the total capital stock of the association will be quickly disposed of. The Finnish Trading Assn., which is now renting private garage space for its ten trucks, will benefit greatly from membership in this co-operative garage society. CHAIN STORES IN THE UNITED STATES There are nearly 10,000 chain store systems in the United States, according to the Chamber of Commerce of the United States, They have a total of about 100,000 retail stores, About one- eighth of all grocers and one-fifth of all drugs retailed are purchased from chain stores. The business is steadily increas ing every year. It began in the cities and has now reached the small towns. Thirty per cent of the department stores now lease some of their departments to chain stores. Mr. Edward A. Filene says that the chain store will drive the individual merchant out of business, and the chain department stores is the next step. In groceries the average overhead is about 15 per cent of sales. The purchas- •no power of the chain store is its great, saving. Co-operative stores report that the chain store sells inferior goods. The development of "co-operative" combines among retail merchants for purposes of joint buying is helping to prolong the merchant's life. He may next have to put his business on a cash basis in order to compete with the chain store's cash system. All of these facts point to the co operative method. In Europe the co operative societies had established their own chains of stores before profit busi ness thought of the idea. In the United States the profit chain store is well estab lished while the co-perative societies are lust getting started with one store in small communities here and there. HUGE CO-OPERATIVE PICNIC On Sunday, May 15, at IJlmer Park, Brooklyn, the Finnish Co-operative Trading Association and its friends held an all-day picnic attended by more than two thousand men, women and children. The weather was ideal for games and other sports during the morning hours, lii the afternoon a small shower inter rupted the last of these sports for a few ininutes but the indoor program of band concert, chorus singing, speeches, paro dies, poems, and a demonstration by the students and instructors of the Co-opera tive Training School went forward as scheduled. Dancing commenced at 6 :30 and continued throughout the evening. The ten trucks of the Trading Asso ciation were kept busy carting food to the picnic crowds and all available park ing space around the park was crowded with cars throughout the day. Greetings were brought by other co- operators, among whom were Dr. J. P. Warbasse speaking in behalf of the Cen tral Committee of the International Co operative Alliance and The Co-operative League. Cedric Long, representing the Eastern States Co-operative League; Harriet Forbes from Consumers' Co operative Services; M. Rubinson from the Co-operative Bakery of Brooklyn; J. Lukofsky from the Russian Workers' Co-operative Stores; Gisha Epstein from the United Workers' Co-operative Asso ciation; J. Ebert from the Litho Credit Union, W. E. Regli from the Hudson Guild Co-op Store, and others represent ing the Industrial Arts Co-operative Services, the Hillside Co-operative Homes, etc. Two of the officials of the Passaic local of the Textile Workers' Union also brought greetings from the trade unionists of that city, who plan to organize a co-operative. Co-operators of Greater New York have not had such a large and successful outing for many a year. ENDORSEMENT OF CREDIT UNIONS The following resolution in favor of credit unions was adopted at the recent national convention of the Cloth Hat, Cap and Millinery Workers' Inter national Union: WHEREAS, our New York Member ship has established a co-operative organ ization for the purpose of taking care of the needs of our members for credit on a favorable and co-operative basis and providing facilities for keeping their savings in their own co-operative institu tion so that the savings of the working people shall not be used to further increase the power of the financial trusts which are oppressive to labor, and WHEREAS, the Headgear Workers' Credit Union has proved to be a success in every respect, its membership now having reached 1100 and its paid up capital $150,000 and during the two and a half years of its existence it already extended 2500 loans to our members, an aggregate sum of $600,000 and is now taking steps to inaugurate a system of group insurance for our membership and has been of real service to our mem bership in every respect, being at the same time a part of the general co-opera tive movement; therefore be it RESOLVED, that this convention go on record as endorsing and commending the work of the Headgear Workers' Credit Union and calling upon all our members to affiliate with it; and be it further RESOLVED, that, the convention call upon our active members of every Local Union to follow the example of the Head gear Workers' Credit Union and develop co-operative institutions on similar lines. COMMITTEE ON RESOLUTIONS. 112 CO-OPERATION CO-OPERATION 113 SERVICE BY CLEVELAND CO-OPERATIVE COAL CO. The Service motive seldom receives more emphasis from any co-operative than it gets from the co-operators of Cleveland who are behind the Coal Com pany of that city,—as is shown by the accompanying pictures. CHECK DAMPER. SMOKE PIPE DAMPER. ASH PIT DAMPER. The C. C. C. C. puts the co-operative spirit into practice by teaching its customers how to build a furnace fire. This diagram and the directions which accompany it are printed on a convenient card and given to each householder to hang in his kitchen or cellar. It was four years ago that a group of trade unionists started buying coal to gether and finally organized their com pany. Under poor management and poor planning all the way around, the company sustained a deficit of many thousands of dollars within the first year or two. In 1924 Roy Shanks, formerly manager of co-operatives in Illinois, was made manager, and since that time the business has gradually made headway until to-day the deficit is entirely wiped out and there is a small surplus on the books. The failure of the Cleveland Co-opera tive Dairy and the near failure of this coal company has completely disillu sioned many of the American workers in the co-operative movement, and the new manager when he took charge found it impossible to appeal to co-operative loy alty. He therefore turned to the idea of emphasizing the motive of "service" even while he held on to the co-operative practices. Not only is every effort made to supply the highest grade of coal, but each customer is encouraged to bring his heating troubles to the manager and if These instructions are printed on the back of a thermometer which is given to every customer. necessary ask for the personal inspection of his furnace. To-day, any customer who wants such service, is visited by an inspector who carefully checks over the heating plant, fills out a detailed report on the condition of chimney, smoke pipe, and furnace and then cleans the flues and smoke pipe and cements any air leaks, all free of charge. As a result of this attention to the needs of the con sumers, there are now between five and six thousand regular purchasers of co operative coal. YOUR, COAL- is 58 to 78% 16 to 40% « FIXED CASK CARBON SMOKE MATTER ASH The way the Coal Co-operative educates the consumers of its products to know what good coal is and how to recognize good coal from the service it gives. The investment in the equipment of this company is still very little. A small shack serves as central office and weigh ing station. Only three people are em ployed at headquarters. Four electrical unloaders to remove the coal from the cars constitute the first item of the equip ment. All trucking is done by private teamsters and trucks hired for the pur pose. The business is 90 per cent for cash. ANOTHER CO-OPERATIVE PAPER The Finnish Co-operative Trading Association, has, for several years pub lished at occasional intervals a little four-page paper which they called '' The pinco Co-operator.'' Recently the Asso ciation has definitely adopted the policy of publishing a local paper once every other month and the first number under the heading "Your Finco Forum" appeared in April. The paper will be published in the month when no "Eastern Co-operator" appears. Thus the membership of the Association may get "Your Forum" on the even months of the year and the "Eastern Co- operator" organ of the Eastern States Co-operative League, on the odd months of the year. The editing is done by Henry Askeli, educational director. The first number contains general educa tional or propaganda articles and pub licity for the Finnish Trading Associa tion and its products; is well printed in green ink and makes an important mem ber of the enlarging family of the co operative papers in the United States. District Leagues Here are a few of the foremost co-operators of the Eastern part of the country who went to Fitchburg on April 3rd when the societies affiliated with the Eastern States Co-operative League held their Third Annual Convention. They came from all corners of Massachusetts, from Connecticut, from New York City, SrooTclyn, and Utica. Some of them wear" numbers: (1) W. Niemela. United Co-operative Society, Maynard: (2) Otto Endres, Utica Co-operative Society, Utica: (3) K. E. Grandahl, United Co-operative Society, Fitchburg; (4) L. E. Woodcock, Consumers' Co-operative Services, N. Y. City; (5) A. Wirkkula, Finnish Co-operative Trading Ass'n, Brooklyn: (6) Niel Kruth, Finnish Co-operative Trading Ass'n, Brooklyn; (7) Morris Goldman, Co-operative Bakeries of Brooklyn: (8) K. Wiesbrod, Hebrew Co-operative Bakery, Brockton: (9) M. Rubinson, Co-operative Bakeries of Brooklyn: (10) K. Aronen, Utica Co-operative Society, Utica: (11) W. Balev, Co-operative Bakeries of Brooklyn; (12) Cedrtc Long, Consumers Co-operative Housing Ass'n, N. Y. C,; (13) Raymond Neri, Workers Co-operative Union, Stafford Springs; (14) Eliseo Giardini, Italian Co-operative Store, Winchendon Springs; (15) Attilio Serafln, Workers Co-operative Union. Stafford Springs: (16) Jacob" Eko, United Co-operative Society, Quincy: (17) Henry Askeli, Finnish Co-op Trading Ass'n, Brooklyn: (18) Anton Jantti, United Co-operative Society, Maynard; (19) William Aho, United Co-operative Society, Gardner; (20) George Makala, United Co-operative Society, Fitchburg: (21) Oscar Levander, Finnish Co-op Trading Ass'n, Brooklyn: (22) Otto Arlund. Brooklyn Workers Co-operative Home: (23) Victor Lahti, Finnish Co-operative Trading Ass'n, Brooklyn; (24) Harriet Forbes, Consumers' Co-opera tive Services, N. Y. C,: (23) Edward Norman, The Co-operative League, N. Y. City; (26) S. C. Cohn, United Workers Co-operative Ass'n, N. Y. C.: (27) S. Goldberg, Workingmen's Co-op Bakery, Lynn; (28) Alex Trutneff, Russian Workers Co-op Stores, Brooklyn; (28) Barrow Lyons, Consumers Co-operative Services, N. Y. C.: (30) John Laakso, United Co-operative Society, Fitch- nrurg; (si) Werner Regli, Hudson Guild Co-operative Ass'n, N. Y. City; (32) Meyer Goldberg, vyorkmgmen's Co-op Bakery. Lynn. The first six listed above are the newly elected Board of uirectors. The seventh member of the Board, Mary E. Arnold (Consumers Co-operative Services) was absent. 114 CO-OPERATION CO-OPERATION 115 GREATER N. Y. CELEBRATES INTERNATIONAL DAY The Joint Educational Committee of the New York section of the Eastern States League is arranging for June 26th a large-scale observance of International Co-operators' Day. The Committee on Arrangements is made irp of delegates from half a dozen of the stronger so cieties. Plans at this writing are for a Sunday afternoon Mass Meeting in Cen tral Park, Avith nationally known speak ers and a musical program. Several thousand buttons carrying the Rainbow Flag will be printed and sold among the members and friends of all the co-opera tives of Greater New York in ad vance, and these will be the "admission tickets." NORTHERN STATES LEAGUE The Auditing Department of the Northern States League is now actively established under the direction of Mr. 0 J. Arness, who has been .doing auditing work for various farmers'.and workers' stores throughout the territory for sev eral years. This new department of the League was opened on January first and very satisfactory beginning has been made during the first five months of its existence. Another new department established recently by the League is the Commer cial Department under the direction of Mr. Dahlstrom. Early in May the de partment had handled eleven carloads of potatoes and other commodities in smaller quantities. Directors' Page EDUCATING THE CO-OPERATIVE EMPLOYEE* In the spring of il'9:2i5 the employees of our society were one manager, one butcher, two delivery men and three lady clerks. All of these employees outside of the manager knew nothing at all about the Co-operative Move ment. Nearly all of them had some experience in merchandising as they had worked for private stores before coming to our store. The manager tried to talk Co-operative Service to these employees during working hours at the store. But as there was but very little time during working hours not very much could be done to have all of these employees learn effi ciency in their work and learn also the mean ing of the Co-operative Movement. For a few months we discussed this question at nearly every Board Meeting. Finally we decided to organize a class to study these problems. The class to be composed of the employees and the members of the Board of Directors. The meet ing to be held at the store at '6:30 every Monday evening. All of the employees would always attend these meetings. Most of the members of the Board would also attend. We would discuss every meeting the transaction and problems we had to deal with since" the meeting of the previous week. A general understanding and * This is the second letter in response to our request that societies write for CO-OPERATION brief statements of their experiences with efforts to educate the co-operative employees. a policy for the future would always be out lined agreeable to the Board, the manager and the employees. Our employees all belonged to a trade union and that brought some of dis cussion of the problems of the Meat Cutters, Retail Clerks and Teamsters Unions. This brought another subject to study and discuss at our classes. For an outline of the study of the Co-operative Movement we would have one of the class read a few pages at a time first from Harris's Book on Co-operation and a few pages from Sonnichsen's Consumers' Co-opera tion. After a brief discussion we would pre pare our questions to study at home through the week and the following meeting the answers to the questions would be read and a discussion started on them. We just about finished studying both of these books when the mines closed down and we had to abandon the classes as most of our cus tomers were moving away to work elsewhere. We still have a few Board Members and a few of our employees here now who were in our classes, and just as soon as the work at the mines gets going again 'we will at once start the classes as we had them. We will again have to start at the beginning as we will prob ably have an entire new set of Board Members and employees. We did not get very far with our experience in Co-operative study but we went far enough to show us that it was a good thing for our society to have had this experiment. MATHEW VITTON, Manager, Kiiicaid Co-operative Association. Book Review "CO-OPERATIVE IDEALS AND PROBLEMS " This is a significant book by Anders Oerne, translated from the Swedish by John Downie, and published by the Co operative Union, Manchester, England. The book is written from the standpoint of the president of the successful Stock holm Society and secretary of the Swed ish Union and Wholesale. Mr. Oerne is one of the young and forward-looking leaders of a movement which has been wise enough to emulate the successes and to avoid the mistakes of its predecessors in other countries. Swedish co-operators have taken ad vantage of the technical skill of the Germans, in the organization of their industry. They have acquired the most up-to-date machinery from the United States and abroad. They have sent their young men to study in foreign countries and to bring back to the Swedish co- operators the best and newest ideas of organization. As a result they have de veloped a movement that is a little gem. Their membership has increased five times in the last fifteen years. The total turnover of their affiliated societies has increased fourteen times in the same period. To co-operators in the United States who are still nursing their co-operative infant through its growing pains, Mr. Oerne seems unduly confident and hope ful. American co-operators often won der if their co-operative child is ever going to grow up and march ahead con quering obstacles and winning its way over its competitors. The minor details and ailments of Co-operation in its early stages do not concern Mr. Oerne. He is rather interested in the larger phases of the Co-operative Movement—co-opera tion in its Relation to the Competitive System, to Labor, to Education, to Democracy and the State. However, Mr. Oerue does not write merely from his study chair but from the sobering experiences of an active life. His discussion on Labor and Co-opera tion has for its background first, three strenuous years when he was toiling six teen hours a day as one of the editors of the Social-Democrat, fighting labor's battle for an eight-hour day. During 1909 occurred the Great Strike when 300,000 workers, practically the whole industrial army of Sweden's population of five million were out for a month. During this month Mr. Oerne was on the strike newspaper, The Answer. The lesson he learned from these activities was that "The workers found that the social problem could not be solved by the general strike, a weapon which until then counted many vociferous supporters in Sweden. Strife between different classes of the community differs not at all from war between states. Both in volve a criminal waste of man-power and of the material resources of the com munity, as well as the sacrifice of intelli gence and of nerve power, which had better be used in the constructive solu tion of the problem." Clear as are his conclusions as to the futility and waste of the strike, never theless Mr. Oerne points out that under present economic conditions conflict is inevitable. He deplores such palliatives —'' patent nostrums " as he calls them— as compulsory arbitration, minimum wage legislation, etc. He points out that the political physicians who seek to cure the evil of labor disputes by passing laws, have generally ignored the fact that the diseases are deep rooted in the very nature of the present economic sys tem, and that their remedies are of little avail. The author is confident, however, that there need be no strife nor class war in co-operative undertakings. He points out that the attitude of the workers to ward Co-operation is and must be vastly different from their attitude toward profit industry since the great majority of the members of co-operative societies (the employers) consist of people of the same walks of life as the employees. Another reason why strife in co-opera tion is not as inevitable as in capitalist 116 CO-OPE EAT ION CO-OPERATION 117 industry is that, in the former, private profit has been abolished as the driving force of its business and the antagonism between buyer and seller has been re moved. Co-operation has also adopted a wage-scale and working hours better than or at least equal to those obtained by trade unionists in similar industry. Therefore, there is no excuse for labor to appeal to the trials of strength that are unavoidable in ordinary business, where the interest of employer and em ployee, of buyer and seller are naturally antagonistic. Although Mr. Oerne's title is "Co operative Ideals," he shows that he is a realist as well as an idealist in his dis cussion of co-operative education. He ridicules the High Priest of Co operation, Robert Owen, and the Pio neers "to whom the unlimited capacity and desire of the masses for education seems to have been an obvious and un doubted fact!'' Even in those days the belief in the power of education to change human nature and conduct was at least a half a century out of date. The experience of the last few decades has dealt even more harshly with op timism of this kind. "Now we know," says Mr. Oerne, "that we cannot hope to make social gains by education alone. Unfortunately, among at least 90 per cent of the population to-day prejudices, sentiments, and inherited fictions pass muster for common sense." Experi enced co-operators recognize these limita tions of the intellectual life of the majority of the people. They do not, therefore, seek to perform miracles by education, but seek to clarify and to assist. They are far from despairing that by means of education great things may not yet be accomplished. Mr. Oerne is really a "behaviorist" in his psycho logical approach to education. He be lieves that by the work and the associa tion in co-operative undertakings, the manner and thought of the members are powerfully influenced. Deeds not words. Or, as he says, "Co-operators build steadily new stairways for their own ascent. The co-operative educator's work is to make clear the goal and the way to attain it." The author of this book resigned his position as Secretary of the Co-operative Union to become Director of the Post Office Department of Sweden. He also served as Financial Secretary of Brant- ing's Government, in 1920, and later was his Minister of Communications. He has been member of the Stockholm Town Council as well as member of the Ways and Means Committee of the Up per House of Parliament. With all these political duties he has found time to participate actively in the delibera tions of the International Co-operative Alliance, and to serve on its Executive Committee. At present he is also serv ing as the Swedish Co-operative repre sentative on the Economic Congress of the League of Nations. So many duties! So many offices! Enough to confuse and to distract the thinking of any man, but not so Mr. Oerne. He is clear and lucid. With reasonable arguments he develops his conviction that'' Co-operation is the best devised system to form an organized alternative to State Absolutism." In fact he insists that, "Co-operation is far more advantageous form of undertaking than the State." There was a time, Mr. Oerne points out, not so very long ago,'' when anyone ven turing to doubt the wisdom and accuracy of the belief in the power of the State, was regarded as a hopeless reactionary, if not a rank blasphemer. This sublime or fanatical faith in the State, especially among the working classes, was almost universal in Sweden." One of the rea sons for this reverence was that the State was the only organization, except the big industrial concerns, which seemed pow erful enough to solve the workers' prob lems. Big business they could not control. But they were told, and they believed, that by the power of their franchise they could make the State serve them. Gradually, however, men have come to learn that they can vote men into office but they cannot control their actions after that. The politician is their representative but not their servant. Finally came the realization to the workers that through their own volun tary organizations, the trade unions, the friendly societies and the Co-operative Movement they can attain their aspira tions and satisfy their needs much more nickly and much more satisfactorily than by political action. Self-help is better than State-help. Now, in Sweden, Air Oerne says: "One can scarcely find a single man to-day who is willing to wait for the State to solve his problem." Mr Oerne is optimistic about Co-opera tion. He looks forward to the time, not too remote, when the habit will have developed among the majority of the electorate of adopting the consumers' point of view towards the actions of the . On 'the other hand, Mr. Oerne says that Co-operation is not hostile to the State. It recognizes the State as necessary for "the protection of right and justice, for ordinary education, for the care of the sick and incompetent and for similar duties." But at the same time, he considers free Co-operation of the people to be preferable to compulsory organization. In fact, despite the justice of many of the criticisms of Co-operation—building within the old order, and thereby tacitly accepting it, relying on men's free will rather than on the compulsion of law or force, or on the incentive of private gain, acquiring capital, and financing accord ing to the usual business practices rather than by taxation and the speedy con fiscation by revolution, and despite the fact that it is too slow and prolonged for the psychological and the actual needs of the present generation, despite all of these criticisms of Co-operation, he is confident that Co-operation offers a more permanent and a more sure method than any other that has been advanced. He says: '' We may transform the Constitution by violence, purge the stat ute books of effete laws, set up new em perors for old, but there we halt. Salvation will come only by the co-opera tion of free individuals. Their achieve ments to-day are a magnificent promise of even better things to come." AGNES D. WARBASSE. Correspondence File COMMENTS ON LLANO Recent observations on doings at Llano Colony have aroused so much comment in the form of letters to the office of The Co-opera tive League that we take this space to print some of the pros and cons. For obvious rea sons we do not give the names of the writers. Dear Sir: I have been interested in the Llano Colony, Louisiana, for some time and have received considerable literature from Mr. Geo. T. Pickett, manager. He has urged me to join the Colony and has asked me to contribute money, claiming it is co-operative. But I can not see how it is co-operative as they do not propose to give any one that joins them any more than board, room and washing and never intend to pay any dividend on stock for which members pay $1,000. It appears to me they are communists rather than co-operators. This concern has been running for ten years in California and Louisiana and taken in more than $800,000 from the sale of stock and gifts and yet it is always in debt. As you are in terested in co-operation all over the world I am asking you if you can give me any informa tion about Llano Colony. E. Dear Sir: The consumers (Kochdale) co-operative sys tem or movement is by far the most construc tive thing done in what might be called the radical movement, and I've got nothing but esteem for it. However, when it comes to a movement like Llano's co-operative effort, I am afraid, that you do not quite understand the spirit that animates it. It is co-operative but not in the sense of the Rochdale method. Those who enter this group do not do so with the understanding that they will obtain any dividends of certain pecuniary returns but that they will live a better, more secure, and happier life, wherein all cause for friction in society, that is, if a pecuniary nature, will be absent. . . . If you consider it from this light, you will see that there is very little basis for criticism. D. # * * Prom Newllano, La. Dear Sir: I wish to thank you for your attempts to warn people who are thinking of coming to Llano—who are about to swallow bait, hook, line, sinker and all. If you only were so good as to try and bolster up the courage of those who have had their morale weakened by as sociation with this Emissary of—well, the Gulf 118 CO-OPERATION CO-OPERATION 119 Lumber Company. . . . As far as I can see this colony is masquerading as a co-opera tive institution, while Pickett, Geraldsou and their ilk seem to have some nefarious scheme under their hats to be sprung after they have quieted people's doubts and questionings. It is pitiable to see how many flue people they have deluded. Is there any litera ture obtainable regarding what is being con templated or has been done in other states'? I feel that after a year in this environment we sadly need our outlook broadened and our backbone stiffened. . tell us where we could procure any thing that would help us to get out from under Pickett's ridiculous propaganda. He simply smothers one with "verbosity." M. * * # Dear Sir: I have been in the colouy not as a member but as an outsider making a psychological and sociological study of the colony in order to use the material for an A.M. thesis, the subject of which is to be this colony. I have lived with the members of the colony for four weeks, during which time I have care fully studied all that they are doing here. I have interviewed practically every member of the colony and therefore am able to speak from personal observation, and not from hearsay. When you consider that the original group came from California less than ten years ago, that they took over and have paid nearly all the debts of the California colony, that they have had three seceding groups, which have in all instances taken from the colony more than they have put in it, that they have had some heavy losses from fire and in spite of all this they are standing shoulder to shoulder with the new groups that have come in from time to time, agreeing to stick to this colony until they could prove that people could live in harmony with each other and make a better world for the children. If you considered all this, you should as I do marvel at their courage and solidarity. I have never seen anything to equal it. It is true that many of their houses are far from desirable, as the colony still has to house many of the people in the old saw mill houses. All the houses the present manage ment has built are comfortable and rather at tractive. ... If the colony is allowed to work out its own salvation I am sure that all persons to whom it is now indebted will get every penny that the colony owes them. Personally I know of no place where I would rather live that in this colony. . . . MRS. T. * * * "The '52 (or was it 72?) industries of this Colony, boasted by Pickett are not noticeable to any extent. In fact, nearly all of them existed only in the columns of the 'Colonist' —and then Pickett probably counted each plow, harrow, shovel, hoe, pig, cow-shed, and pig-pen as a. separate industry. "The largest industry in this Colony is Pick ett's propaganda factory, which manufacture bait for catching suckers. The ' Colonist' ;.- the bait. It has several fairly able prevari cators and several more who would be g0(x[ ones if they only kuew how. They do the "best they can; no man or woman can do more. . . . "Manager Pickett brags of the fine condition of health that exists in the Colonv He draws upou his imagination in this, as he does in most things. Doubtless it is for the purpose of camouflaging the fact that the Colony has no resident physician, and has not had one for months. It has no nurse, dentist or oculist. . . . It is true that the won derful 'working contract,' which all members are supposed to sign, specifies 'food, clothing shelter and medical attention.' These are things that exist largely on paper—onlv meant to bind the member, uot the corporation. "Here are some catch-words which have been very much overworked at Llano Colonv and especially in the columns of its publica tions. We venture the prediction that these words will soon 'be placed in cold storage. I give their real definitions: " 'Ye Ladie Reporter. She was Pickett, mostly, and his prevaricating propagandists. She wasn't a lady, and she certainly wasn't a gentleman. '' ' We Have Been Vindicated.' Meaning that, as yet, neither the Manager nor the Board of Directors have legally been declared fraudulent.'' H. F. K. Fuller Brains. I hear you were handed a small check for your milk last month. Cheer up, Old Man. Don't look so sour. What do you care about money? You're making a grrrrand fight f-or the principle of Freedom-to- Euy-and-Sell-Where-You-Please. Hurrah for Freedom! Three cheers for Liberty!! Feed it to your children when they get hungry. Personally I prefer a larger milk check and a fairer share of Freedom for all the neighbors. That's why I joined the Co-operative. NEW CO-OPERATIVE DEMOCRACY Second Edition completely revised by JAMES PETER WARBASSE President of The Co-operative League of the United States of America Member of the Central Committee of the International Co-operative Alliance A Discussion of the Consumers' Co-operative Movement In Its Relation to the Political State, to the Profit System, to Labour, to Agriculture and to the Arts and Sciences "We hope Dr. Warbasse's book will find readers throughout the world" G. J. D. C. Goedhardt, President International Co-operative Alliance MACMILLAN & CO., New York, Publishers ORDER FROM The Co-operative League, 167 West 12th St., New York, U. S. A. Price, $1.50. The Co-operative Union, Holyoake House, Hanover St., Manchester, England. German Edition: Verlagsgesellschaft deutscher Konsumvereine, Strohhause 38, Hamburg, Germany. Price, 6 marks. STUDY CO-OPERATION AT HOME Correspondence Courses prepared and ad ministered by experienced co-operators are now ready 1. Elementary English Z. Commercial arithmetic 3. Bookkeeping for Co-operators 4. Advanced Course in Bookkeeping 5. Principles and Theory of Co-operation For full 'particulars write THE CO-OPERATIVE LEAGUE 167 West lSth Street New York City The Canadian Co-operator Brantford, Ontario, Canada The organ of the Canadian Co-onera- tive Movement, owned by and con ducted under the auspices of The Co-operative Union of Canada. Published monthly 75c per annum "The Co-operative Pyramid Builder" Official Organ of Co-operative Central Exchange is a snappy, live co-operative magazine. Get in line! Subscribe NOW Subscription price 50c a year. CO-OPERATIVE CENTRAL-EXCHANGE Superior, Wis. CO-OPERATION, 167 West 12th Street, New York. Please send CO-OPERATION for one year to Name. .................................... Address................................. $1.00 a year. 120 CO-OPERATION PUBLICATIONS —OF — THE CO-OPERATIVE LEAGUE HISTORICAL Per Copy Per 100 3. Story of Co-operation .............$ .10 $6.00 7. British Co-operative Movement..... .10 6.00 38. Consumers' Co-operative Movement in U. S., 1926................. .10 6.00 39. Consumers' Co-operative Societies in N. Y. State (Published by Con sumers' League ................ .10 59. Co-operative Movement in Europe.. ,05 4.00 64. Progress of Co-operation in United States. ..................... .05 4.00 TECHNICAL 4. How to Start and Run a Rochdale Co-operative Society ............ .10 4.00 5. System of Store Records and Accounts. . . . . . ............. .50 6. A Model Constitution and By-Laws for a Co-operative Society....... .05 2.50 8. Co-operative Education. Duties of Educational Committee Denned... .10 9. How to Start a Co-operative Whole sale ........................ .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-opera tive League ................... .10 29. Credit Union Primer (By Ham and Robinson). .................. .50 43. Co-operative Housing ............. .10 50. A B C of Co-operative Housing.... .10 51. Model Lease for Co-operative Apart ment House ................... .10 MISCELLANEOUS 16. Model Co-op State Law............ .10 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 33. Credit Union and Co-operative Bank .05 13. The Place of Co-operation Among Other Movements .............. .25 34. Co-operative Movement (Yiddish).. .02 1.25 30. " When the Whistle Blew " (Story, by Bruce Calvert) .............. .06 65. Reading List on Co-operation....... .10 66. International Directory of Co-opera tive Organizations .............. .35 41. Social Aspects of Farmers' Co-opera tive Marketing (By Benson Y. Landis). .................... .25 42. Co-op Homes for Europe's Homeless .10 53. Real First Aid for the Farmers.... .05 55. A Better World to Live In........ .05 57. How a Consumers' Co-operative Dif fers from Ordinary Business..... .02 .60 60. The " Moral Equivalent " of Jazz... .02 j62. Buttons (international colors) 24 inch diameter..................... 3.00 63. Sign or Transparency of League Em blem. Green and gold, 8 in. diam.. .25 15.00 ONE-PAGE LEAFLETS (One Cent each; 50 Cents per 100; $2.50 per 500; $4.00 per 1,000.) (1) Principles and Aims of The Co-operative League; (20) Why Loyalty Is Necessary; (21) Cost and Crime of Credit; (25) Resolutions Adopted hy A. F. of L.; (26) Factory Workers Co-operate 1; (28) Do You Know About Co-operation in Europe?; (40) Have You a Committee on Education and Recreation?; (44) What Is the Co-operative Movement?; (45) Schools and Stores; (47) A Man's Right to a Job; (48) Tips to Co;0peratqrs; (49) A Way Out; (61) Co-operation Brings Disarmament. MONTHLY PUBLICATIONS $7.50 il-00 CO-OPERATION—(In bundle lots, dred). Subscription, per year...... INTERNATIONAL CO-OPERATIVE (Pub. by The I. C. A.)..........Per $1.65 if paid by check. BOOKS The following books are recommended as containm. the best discussions of the modern Co-operative Mov ment. They may be ordered through The League: Bergengren, Roy F.: Co-operative Banking, A Credit Union Book ..................... Blanc, Elsie T.: Co-operative Movement in Russia . . . . . . . ....................... Brightwill, L. R.: Animal "Co-op" Book—For Children . . . . . . . ..................... Faber, Harald: Co-operation in Danish Agricul ture, 1918 ............................. Flanagan, J. A.: Wholesale Co-operation in Scotland, 1920 ......................... Gebhard, Hannes: Co-operation in Finland, 1916 Gide, C.: Consumers' Co-operative Societies American edition and notes, 1922. Cloth.. Hall, Prof. Fred: Handbook for Members of Co operative Committees ................... Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Paper bound........ Holyoake: Rochdale Pioneers ................ Howe, Fred C.: Denmark, a Co-operative Com monwealth, 1921 ....................... Jessness, O. B.: Co-operative Marketing of Farm Products ......................... Madams, J. P.: The Story Retold............ Mears and Tobriner: Principles and Practices of Co-operative Marketing................ Nicholson, Isa: Our Story................... Oerne, Anders: Co-operative Ideals and Problems Owen, Robert: Autobiography .............. Poisson, E.: The Co-operative Republic....... Potter, B.: Co-operative Movement in Great Britain .............................. Redfern, Percy: The Story of the C. W. S..... Redfern, Percy: The Consumers' Place in So ciety, 1920 ............................. Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918 ........................ Smith-Gordon and O'Brien: Co-operation in Denmark . . . . . . . .................... Smith-Gordon and O'Brien: Co-operation in Many Lands, 1920 ..................... Stolinsky, A.: The Co-operative Movement. (In Yiddish). ............................ Warbasse, J. P.: Co-operative Democracy, 1927.. Warne, C. E.: Consumers Co-operative Move ment in Illinois ........................ Webb. B. and S.: The Consumers' Co-operative Movement, 1921. Board, $2.00; cloth..... Webb. Catherine: Industrial Co-operation, 1917. Woolf, Leonard: Co-operation and the Future of Industry ............................ Woolf, L.: Socialism and Co-operation........ CO-OPERATION, Bound Volumes, 1915 to 1925 inclusive, each ......................... Transactions of Second American Co-operative Congress, 1920 .......................... Transactions of Third American Co-operative Congress, 1922 ......................... Transactions of Fourth American Co-operative Congress. 1924 ......................... Northern States Year Book, 1926. Paper..... The People's Year Book, 1927. Cloth, $1.00; paper bound ........................... $3.00 2.SO .1! 2.75 2.00 2.00 2.00 2.00 .60 1.00 2.00 2.50 .50 3.20 .25 1.25 .50 1.75 1.00 2.00 1.00 1.00 1.00 1.50 1.00 1.50 3.50 5.00 1.50 1.00 1.50 1.25 1.00 1.00 •3 .60 (OOTCMION A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in voluntary 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, December 19, 1917, at the Post Office at New York, N. Y., tinder the Act of March 3, 1879. Price $1.00 a year. VOL. XIII, No. 7 JULY, 1927 10 CENTS \ -AJ-. »• 3 , &\%v'- '• .««,-•••• . •• • - , .. (.Ten cents postage should be added for all books.) "ViR GA'BD" ("DUE MANOR") is the headquarters for Co-operative Education in Sweden Tins School, situated in one of the most beautiful suburbs of Stockholm on the edge T a tafce, is to be the scene of the International Co-operative Simmer School to be held M , ^^ ye0/r' precedin9 and during the sessions of the International Co-operative "I 122 CO-OPERATION Co-operative League of Nations In the middle of August this year co-operators of all nations will foregather for their Twelfth International Congress to be held under the auspices of the International Co-operative Alliance at Stockholm, Sweden. .It is not only the co-operators of all the countries of Europe which are affiliated with the Inter national Alliance, but also those from Asiatic countries as far away as Japan, national unions of North and South America, and even the societies of Australia. The widely heralded League of Nations fathered by Woodrow Wilson might well look with envy at this non-political international co-operative federation, for not only does it include many of the peoples who have refused to enter the League of Nations but it is also functioning in an atmosphere of harmony and mutual good will which is quite unknown to the political assemblies at Geneva. The student of sociology might find an interesting subject for study in this contrast between the assembly of the League of Nations on the one hand, poisoned through and through with its political intrigues, suspicions, and scramblings for power, and on the other hand the Co-operative League of Nations, the membership of which is devoting its entire energy to the organization of international economic relations on a basis of service to humanity, and .working in an atmosphere of the highest degree of good will. The International Co-operative Alliance is a federation of co-operative educa tional unions and wholesales of thirty-six countries, representing more than 80,000 co-operative societies and 50,000,000 individual co-operators. Russia, England and Germany have the largest movements affiliated with the Alliance. Each of the national organizations paying dues is entitled to a certain number of delegates to the Congress which is held every three years. At these Congresses a Central Committee is elected, this Committe being composed of one or more members from each of the countries represented. The Central Committee meets at least once each year. Dr. James P. Warbasse is the member of the Central Committee from the United States. The Central Committee in turn elects an Executive Committee of 12 members. This Executive Committee meets at fre quent intervals at the call of the President and the Secretary. Meetings of the Congresses, of the Central Committee and of the Executive are rotated among the countries of Europe. The 1921 Congress, for instance, was held at Basle, Switzerland. In 1924 the Congress met at Ghent, Belgium, and this year is to meet at Stockholm, Sweden. The president of the I. C. A. for several years past has been G. D. J. C. Goedhart of Holland and the executive secretary is Henry J. May of England. The two vice-presidents represent France and England. The International Alliance, a few years ago, organized special committees to study the possibilities of international co-operative wholesaling, international co-operative banking, and international co-operative insurance. All of these committees are making satisfactory progress with their statistical studies of the problems in their respective fields and have succeeded in stimulating considerable exchange of service among the national unions or wholesales and in strength ening the mutual confidence among the international groups. There will doubt less be established in the near future, the central international office for whole saling, and at a later date, the central office for international co-operative banking and another for international co-operative insurance. The last two international movements can not be developed so rapidly because of the instability of the currency in several of the European countries. The city of Stockholm itself, contrary to the ideas which prevail in many minds, is not a place where polar bears freely walk the streets. Out of the beaten path of European tourists as the Swedish capital is, nevertheless it is one of the most finely built and up to date cities on the continent. The city proper, exclusive of its suburbs, has a population of 450,000 and compares CO-OPERATION 123 : -»„ TEE KBONOE, or THEEE CBOWNB is the name of this mammoth flour mill owned liy the Kooperativa Forbundet, the Co-operative Wholesale Society of Sweden. For many years the flour combine dominated the country and there was no business strong enough nor foolha/rdy enough to attempt to break the trust. A few years ago the Consumers Co-operative Whole sale erected this Iwge plant just outside of Stockliolm mid with it made the first onslaught against the four trust. Today another large flour mill, Tre Lejon, at Gothenburg, stands as a monument to the fact that the trust has been defeated and the victorious Co-operative Wholesale Society is the largest miller of flour in the entire country. While these two mills are operated night and day the year round, the flour mills of the combine are working only part time. favorably with any capital city in the world as regards beauty, hygiene and modern methods of operation. One of the outstanding features of Stockholm is that it is situated on a number of islands which are surrounded by the waters of Lake Malaren and Lake Saltsj on. The city of Stockholm is seven hundred years old, having been founded in 1250 and the ancient quarters of the old town are still in existence alongside of the modern city. This northerly city possesses many parks and gardens: and the streams or canals which intersect the city swarm with attractive white boats. The public building which dominates the town is the Royal Palace standing on the site once occupied by the old strongly fortified castle "Tre Kroner.'' This name, '' Three Crowns'' is now borne by the splendid new flour mill of the Swedish Co-operative Wholesale Society, standing conspicuously at the entrance of the harbor, a stalwart defense for the Swedish consumers against the domination of the trusts. Another beautiful public building is the stately town hall, renowned through out Scandinavia as one of the most imposing pieces of architecture of Northern Europe. A third public building of outstanding loveliness is the Northern Museum with its unique natural park "Skansen" a collection of old Swedish houses, country churches, etc. "Our Manor," the school of the Swedish Co-operative Union where the staff 124 C 0 - 0 P E B A T10 N and employees are educated, is situated in one of the beautiful suburban spots "Skargard" the section outside of Stockholm where there are many of the elaborate summer residences of the well-to-do. A few words about the Swedish Co-operative movement itself, which plays host to the International Alliance this summer, will not be out of place. Despite the fact that the general price level in Sweden continued to decline considerably during 1926, the Co-operative Wholesale Society and the Con sumers' Societies had the largest turnover in their history. The turnover of the Wholesale Society amounted to 103,700,000 kroner, an increase of 6,000,000 over that of 1925. During 1926 the wholesale has carried on an energetic campaign against the powerful rubber-shoe trust, and now brought to a victorious conclusion. The rubber-shoe trust, a cartel of four rubber factories with an original capital of only 4,000,000 kroner, has for the last fifteen years or so controlled the price of goloshes, so important a wearing apparel in Sweden, having in that time amassed total net profits amounting to upwards of 50,000,000 kronor. The excessive prices of goloshes charged in recent years by the trust have aroused the animosity of the buying public, and when the Co-operative Wholesale Society announced its intention to break the monopoly, and to this end invited people to subscribe 7,000,000 kronor for a building fund, the appeal met with a hearty response. The immediate result was that the trust lowered its prices by more than 25 per cent. One of the concerns included in the cartel, realizing that the domination could no longer be upheld, has since sold its factory to the Co-operative Wholesale Society, which transaction has definitely ended the monopoly. This new acquisition—the Gislaved Eubber Factory—is the fifth in order of the large industrial undertakings owned and operated by the Swedish Co-operative Federation, the other ones comprising two flour mills, one margarine factory, and one shoe factory. One of the big flour mills—'' Tre Lejon" at Gothenburg, which supplies flour to the Co-operative stores in the southern part of Sweden, has been rebuilt and enlarged during 1926 and the early part of the present year, its capacity being now practically equal to that of the co-operative flour mill "Tre Kronor" at Stockholm. These two are now the most-up-to-date and technically best equipped flour mills in the country. All of the departments of the Wholesale showed an increase in business, the department of household goods showing an increase of no less than 30 per cent over the business for 1925. The total increase of members during 1926 in the Consumers' societies was 23,500, bringing up the total membership to about 340,000. If every member is assumed to represent a family of 4 persons—which is admissible in Sweden, where as a rule only the head of the family is registered as a member in a society—we may conclude that at the present time organized co-operation supplies 22.4 per cent of the total population of Sweden with their requirements of foodstuffs. A notably strong advance during the year has to be recorded for the big Stockholm Consumers' Society. One is justified in expecting an irre sistible spread of the co-operative idea in the near future, and this is certain to win new supporters for the emancipative efforts of the consumers. The Congress of the International Alliance, to be held in August, is now looked forward to with keen interest by co-operators of all Europe as well as by Swedish co-operators. It is hoped that this congress and its deliberations will focus the eyes of the public on the benefits inherent in the co-operative ideas, and assist in stimulating still further the forward march of the Swedish branch of the movement. It will be a great event in the history of Swedish co-operation for its representatives to act as hosts of the prominent co-operators from all parts of the world. CO-OPERATION 125 Vital Issues DOES PROSPERITY DEPEND ON THE FARMER? Not long ago the prosperity of this country depended absolutely upon the farmers; if the farmers were prosperous the rest of the business was prosperous. But now this is no longer an agricul tural country; more of the people live in cities and are occupied in commerce and manufacturing. Crop failures now are not the factor they once were; and bank ers and merchants are not so much con cerned for the farmers' prosperity. The same thing is happening here as came to pass in England. For three-quarters of a century the general condition of busi ness in England has not depended upon agricultural prosperity. The city people have not cared very much whether the farmers were going under or keeping afloat. This is the condition that is now developing in the United States. Ever since the farmers enjoyed their intoxication with three-dollar wheat, they have suffered low prices for farm products. For seven years the banks have been foreclosing their mortgages on the farms and the farmers' sons and daughters have been escaping from the old homestead at a rate that has never before been equalled. In 1920 our farm population was 31,- 000,000. To-day it is 27,000,000. It is a great exodus, of profound significance. In 1918, the national income was $60,- 000,000,000, and of that, the farmers re ceived $12,000,000,000. The national in come is now $90,000,000,000, and the farmers receive $10,000,000,000 of that. Ten years ago one-fifth of the national income went to the farmers; to-day they get one-ninth. During these seven years of agricul tural depression the general business Prosperity of the country has been the greatest in our history. 'The dividends, the interest, the rents, the wages of workers, and the profits of tradesmen nave been the marvel of the world, west commercial prosperity has come OD side by side with agricultural de pression. The farmers have not been asleep. They have attempted to solve their prob lem by increasing their production. It it calculated that one individual farm worker produces twice as much as he did fifty years ago. The farmers have con tinued to feed the city folks—and feed them well. But the increased produc tion, brought about by machinery, bet ter seeds, fertilizers, high power cows, chickens, and pigs, has prevented scar city and held down prices. It has been good for the city people; and the farmer has carried the economic disadvantage of overproduction. The farmer has helped to make the other fellow rich. He has stayed poor himself. And now he is faced with the awful truth that the other fellow can get along without him, and does not care whether he sinks or swims. Of course one only needs to turn the pages of history and he will see that this sort of thing can not go on forever. The economic unbalance will come. But with all of the modern machinery of in terlocking national banks, federal re serve, and the fiscal resources of the Gov ernment available to stabilize things and to prevent panics, the present trend of things may go on and on till God-knows- when. It is possible that our farmers may be reduced to a peasant class who will find it necessary to co-operate for their mu tual protection as have the poor farmers of Europe. When things got terribly bad in the old world they took into their own hands the jobs that other people had been doing for them. They ceased to employ the banker at high cost to fi nance their business; they became their own bankers. For the same reason, they became their own merchants, and sup plied their own wants. They took in surance out of the hands of the insur ance companies, and insured themselves. The world is moving. Things are changing. It is fascinating to watch the tides, the swirling currents, the sloAv glacial movements, and now and then the crashing avalanche. J. P. W. CO-OPERATION 127 126 CO-OPERATION News and Comment CO-OPERATIVE SCHOOL COMES TO SUCCESSFUL CLOSE On May 28, H. V. Nurmi, director of the first Eastern Co-operative Training School, handed out the certificates of graduation to sixteen students; the students then decided to remain in their classroom for another four hours of bookkeeping on Saturday afternoon; and by 6 o'clock Saturday night the first training school to be organized by the Eastern States Co-operative League was a matter of history. These sixteen young men and women students came from two towns in Massa chusetts, from Dillonvale, Ohio, from Utica, N. Y., Spencer, N. Y., and various parts of New York City. Furthermore, they made up a genuine Internationale, being composed of Finnish, German, Jewish, Bohemian and American co- operators. The youngest was a seven teen-year-old boy direct from the second year of high school in the mining town of Dillonvale, Ohio, and the oldest, a thirty-seven-year-old employee of the Finnish Trading Association in Brook lyn. They came from store societies, bakery societies, housing societies, credit societies, restaurant societies and socie ties distributing milk and coal. Ten of them have previously been employed in the co-operative movement, five as clerks and the others in such various capacities as truck driver, office worker, waitress, kitchen worker and bookkeeper. Eleven of them were men and five women. The school was in session for six weeks, six days a week, seven hours a day, and half of the total time was devoted to the study of bookkeeping as taught by H. V. Nurmi. One-quarter of the time was devoted to the study of the History and Principles of Consumers' Co-operation under the direction of Edward Cohen, teacher in the Co-operative Educational Institute of Brooklyn; and one-quarter of the time to the study of Problems of Organization, Administration and Man agement of Co-operative Business as taught by Cedric Long of the League staff and the technical experts he called in. Among the special lecturers called in to assist were Dr. J. P. Warbasse President of the League; Mrs. A. D'. Warbasse; Harry Rappaport, legal advisor to the League; Werner E. Regli League Accounting Director; Edward Norman, Research Secretary of the League; Mary E. Arnold, Manager, Con sumers' Co-operative Services; M. Rubin- son, Manager of Co-operative Bakery of Brownsville; A. Wirkkula, Manager, Finnish Trading Association; A. E. Albrecht, representing the New York State Department of Farms and Markets; Solon DeLeon, of the Rand School; A. Shiplacoff of the Brownsville Labor Lyceum; A. J. Muste, Director, Brookwood Labor College, and others. Excursions were made to Brookwood Labor College at Katonah, N. Y., the waterfront food market of Manhattan, the Co-operative League headquarters, the Consumers' Co-operative Services headquarters at 54 Irving Place, and the houses of the United Workers' Co operative Association. The Finnish Trading Association was very generous in feeding the students at their restau rant at reduced rates and many of the members and employees of the associa tion provided lodgings for the students at very reasonable prices. During the last week of the school, the students themselves held a social and entertainment in the hall of the Finnish Club House which was attended by more than two hundred people and which netted a good profit to help cover the deficit of the school. The operation of such a school as this is most expensive. Yet, in spite of the fact that the total cost exceeded $1,100, there was but a small deficit which had to be made up from the treasury of the Eastern States League. Fully a dozen of the co-operative societies in the East contributed largely to the support of the school, and it was this substantial back ing that made the courses possible at all. Sixteen young men and women have returned to their former jobs more familiar with the significance of the co-operative movement and better equipped to contribute to its effective ness. Because of their training during these six weeks many of them will be advanced more rapidly in their co-opera tive societies, and several others who are now working outside the movement will doubtless find co-operative employment in the future. The co-operative societies of the Eastern States have followed the lead of the Northern States co-operatives in beginning to train their own em ployees rather than depend upon the training given by capitalist business. THIS LETTER ALSO SPEAKS FOR ITSELF MB. H. HOWBS, Superintendent Norwood Schools Norwood, Mass. Dear Sir: The United Co-operative Society of Nor wood hereby makes an offer of $50 to be pre sented in the form of cash prizes to the students of the Norwood High School writing the best original essays on the subject, "Con sumers ' Co-operation.'' We leave to the School Board and yourself the arrangement and administration of the details of the Contest, but offer the following tentative suggestions as to the conditions which might govern the Contest: A. The cash prizes to be three, presented as follows: $&5 to the writer of the best essay $15 to the writer of the second best essay $10 to ithe writer of the third best essay B. Essays must not exceed ........ words. C. All essays must be turned in to the office designated on or before .............. 1927. D. The essays must be the original work of the contestants, although the contestants may do as much preliminary study of the subject as they desire. E. The judges to be three: Two appointed by the Superintendent of Schools or