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 Septemb