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240 


COOPERATION 


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7. British Cooperative Movement...... .10 

38. Consumers' Cooperative Movement in 

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59. Cooperative Movement in Europe... .05 

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69. Story of Toad Lane (By Stuart 

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TECHNICAL 

4. How to Start and Run a Rochdale 

Cooperative Society ............. .10 

6. A Model Constitution and By-Laws 

for a Cooperative Society........ .05 

8. Cooperative Education. Duties of 

Educational Committee Defined... .10 

9. How to Start a Cooperative Whole 
sale.. ....................... .10 

27. Why Cooperative Stores Fail....... .02 

14. How to Start and Run a Women's 

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BOOKS 

The following books are recommended as containing 
the best discussions of the modern Cooperative Move 
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Blanc, Elsie T.: 


Cooperative Movement in 
Co-op " Book—For 


nc, 

Russia . . . . . . . . . . . 

Brightwill, L. R.: Animal 

Children ............................ 

Chase and Schlink: Your Money 's Worth, A 

Book for Consumers .................... 

Flanagan. J. A.: Wholesale Cooperation in 

Scotland, 1920 .......................... 

Gide, C. : Consumers' Cooperative Societies 

American edition and notes, 1922. Cloth 
Hall, Prof. Fred: Handbook for Members of Co 

operative Committees .................... 

Harris, Emerson P.: Cooperation, The Hope of 

the Consumer. 1918. Paper bound....... 

Holyoake : Rochdale Pioneers ................. 

Jessness, O. B.: Cooperative Marketing of 

Farm Products ......................... 

Madams, J. P.: The Story Retold. ............ 

Mears and Tobriner: Principles and Practices 

of Cooperative Marketing. .............. 

Nicholson, Isa: Our Story. ................... 

Oernc, Andrcs: Cooperative Ideals nad Problems 
Owen, Robert: Autobiography ............. 

Poisson, E. : The Cooperative Republic ..... 

Potter, B. : Cooperative Movement in Grea 

Britain ... . . . . . . . ................. 

Redfcrn, Percy: The Story of the C. W. S... 
Redfern, Percy: The Consumers' Place in So 

ciety, 1920 ............................. 

Smith-Gordon & Staples: Rural Reconstruction 

in Ireland, 1918 ..'...................... 

Smith-Gordon and O'Brien: Cooperation in 

Denmark. .......................... 

Smith-Gordon and O'Brien: Cooperation in 

Many Lands, 1920. ...................... 

Sonnichsen, A.: Consumers' Cooperation. Paper 

bound ........ . . . . . . . . ............... 

Stolinsky, A.: The Cooperative Movement. (In 

Yiddish) . . . . . . . ..................... 

Warbassc, J. P.: Cooperative Democracy, 

1927........ ........ ................ 

Warbasse, J. P.: What is Cooperation, 1927.... 

Warne, C. E.: Consumers' Cooperative Move 

ment in Illinois ..................-.••••• 

Wcbb, B. and S.: The Consumers' Cooperative 

Movement, 1921. Board, $2.00; cloth..... 
Webb, Catherine: Industrial Cooperation, 1917.. 
COOPERATION, Bound Volumes, 1915 to 1927 

inclusive, each .....,..,,,........••••••• 

Report of the American Cooperative Congresses, 

1920, 1922, 1924, 1926, each. .,........•• 

Northern States Year Book, 1927. Paper..... 

The People's Year Book, 1928. Cloth, $1.00; 

paper bound ...............-..•-•••"••• 


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<mmm 


A magazine to spread the knowledge 
of the Cooperative Movement, whereby 
the people, in voluntary association, 
produce and distribute for their own 
use the things they need. 


Published Monthly by 

THE COOPERATIVE LEAGUE OF THE 

U. S. A. 

167 West 12th Street, New York City 
CEDEIC LONG, 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. XV, No. 1 


JANUARY, 1929 


10 CENTS 


«^H^;.' -.vV,'-~rr*;--'^••'••."•. ; 


WSSIAN WOEKEES COOPEEATIVE BESTAUEANT OF CHICAGO. They say it serves 
tile largest quality meal to 6e found in the city. Its increasing popularity seems to Tuear out 
tlie reputation. Any cooperator ivho has ever eaten there ivMl certainly lie quite ready 
to Relieve it. 


 COOPERATION 


COOPERATION 


Russian Cooperative Restaurant in Chicago 

Cooperative restaurants are multiplying in the United States more rapidly 
than any other type of business, with the exception of credit unions. The recent 
enlargement of the Russian Workers' Cooperative Restaurant is worthy proof 
of this statement. 

It was in 1924 that a group of Russian workers first organized this society 
For several years the business went along with fair success and a growing num 
ber of patrons, until in April, 1928, they were forced to move into larger quarters 
in a fine new building at 1628 West Division Street, a few doors away from their 
old location. The society has a ten years' lease on the premises, which comprise 
the restaurant quarters on the ground floor and a large meeting hall and library 
upstairs. 

The new restaurant seats 85 people at one time, having both lunch counter and 
table accommodations. Eight thousand five hundred dollars was spent on new 
fixtures and equipment, making this one of the most up-to-date restaurants in 
that section of Chicago. There has been an increase of about 100 per cent in 
sales since the move was made. 

About 850 people are being served each day, 1,000 on Sundays. Meals are 
served the entire 24 hours in the day. Income during the summer months was 
as follows: May . . ...................... $9,460 

June . . ..................... 10,100 

July ....................... 9,510 

August ..................... 9,300 

.September .................. 9,130 

Total income for the year 1928 will exceed $100,000. 

Sixty-four members were enrolled at the end of 1927. Manager Kutzko 
has been on leave visiting1 relatives in Russia for the past twelve months but 
is expected back shortly. Secretary Skreeway is the other officer who has been 
active in his position since the restaurant was first organized. 

The unexpected increase in business since entering the new building has 
encouraged the directors and members to plan for the opening of a grocery and 
meat market in 1929. 

Several cooperators from the East, traveling through Chicago, have stopped 
to eat and fraternize with the Russian cooperators, and each of them, accustomed 
as he is to getting large meals at small cost in cooperative restaurants, neverthe 
less looks with amazement at the size of the dishes served by these workers. It is 
a puzzle how they can hand out such qiiantities of food at the price and observe 
the strictest of union conditions for all employees. 


BUYING TOGETHER, TOO 

How much we get for our produce is 
not the whole science of the farming busi 
ness. . . . Suppose the produce of the 
farm were raised 25% by cooperative 
marketing, would that be any advantage 
if the cost of living were raised 26% by 
competitive individual buying? The money 
we get for our wheat is only of secondary 
importance. The chief thing is what we 
can get with the money. 

It is not money we want, but goods. 
We want clothing, furniture, implements, 
twine, food, lumber, and many other things. 
How much of these can we get with the 
money that is given us for our wheat? 
Suppose wheat were 50 cents a bushel, 
instead of $1.42, what difference would 
that make if the cost of living had been 
reduced to one-third? 


What we want to emphasize is the fact 
that we must see to it that we get as 
much as possible in the way of goods for 
the crops we raise. There is only one way 
to do this and it is by uniting our buying 
power just as we have united our selling 
power. 

The farmer in the past has been accus 
tomed to purchase his requirements retail. 
Every other producer has bought his re 
quirements wholesale. And not only so, 
but of late years factories which are en 
tirely separate in every other way will 
club together to buy some commodity 
which they all use as a raw material. . . • 
They know the advantage of cooperative 
buying. 

Western Producer, Saskatoon, 
Saskatchewan. 


Editorial 


INDIFFERENT MEMBERS LEAD TO 
COOPERATIVE STAGNATION 

One of the most inspiring talks ever 
made before the National Congress of 
The League was that given by L. S. 
gerron at Waukegan on the subject 
"Creating New Centers of Cooperative 
Interest." During that talk he elabo 
rated upon the danger of dry rot pro 
duced by an indifferent membership. 
There is no subject more worthy of care 
ful consideration than this in a country 
where the forces of disintegration have 
broken down the membership morale of 
so many cooperative associations. 

It is for this reason that a recent study 
made by the U. S. Department of Agri 
culture has peculiar significance. One 
of the economists from the Department 
made a careful analysis of four market 
ing organizations, the smallest of which 
had 3,000 members and the largest 
45,000. Nearly 1,000 of the shareholders 
of these associations replied to the 
questions put to them; and in addition 
641 non-members replied to other ques 
tions regarding the local cooperative 
associations. 

In answer to the question, "What did 
you expect your cooperative to accom 
plish when you joined it?" the great 
majority expected better prices, tlumgh 
a considerable number looked for better 
marketing conditions or more accurate 
standards. The majority believed their 
associations did accomplish the results 
they expected but criticisms were numer 
ous; 29 thought the officers were in 
league with the private dealers; 36 
thought they were paying too much for 
the service they got; 23 considered sala 
ries too high and 23 thought prices were 
too low; 21 thought there were too many 
employees; 60 complained of over- 
expansion; 111 complained of outright 
mismanagement. 

As regards the relative advantages of 
membership or non-membership in the 
association, 281 members felt that they 
nad no advantages over their non-mem 
ber neighbors; while 286 felt they were 
Protected by a sure market; 441 felt that 
non-members had no advantage; while 
-J' ^vere sure that the non-members got 


more money and 106 that the non-mem 
bers gained in having no expenses or 
dues to pay; 563 were convinced that if 
the association went out of business their 
income would be lowered. The answers 
from non-members showed that less than 
half of them had any real reasons for 
refusing to join, and the others were 
governed by sheer indifference; 128 be 
lieved they had no advantage whatever 
over the members, but 144 felt that they 
got more money than the cooperators; 
22 felt they would join at a later date 
but 95 were sure they would not; 201 
reported that their neighbors who were 
members were well satisfied and 141 
reported that none of their neighbors 
belonged. . Three hundred and three of 
the non-members admitted they had 
benefited indirectly by the organization, 
while 204 found no such benefits. Three 
hundred and fifty-nine, or considerably 
more than half of these non-members, 
agreed that the association had raised 
the price level for their products and 
only 147 denied this. Three hundred 
and twelve admitted that prices had 
been stabilized by the cooperative, and 
432, or more than two-thirds of the 
entire number of non-members inter 
viewed, said they did not want to see 
the association discontinued—a really 
remarkable admission. 

Questions regarding attendance at 
meetings brought forth some more 
illuminating replies. Nearly three- 
quarters of all the members questioned 
had never attended a meeting of their 
association; 125 giving as the reason 
"inconvenience," 48 "neglect" and 44 
"not interested." 

These cooperators were asked for the 
source of their information about ihi 
cooperative organization. More than one- 
half got their facts from the organiza 
tion paper, while only one-quarter got 
them from local meetings. One half of 
the members considered they were kept 
well-informed and one-sixth were sure 
that they did not get enough informa 
tion. Of the latter, the vast majority 
placed the fault upon themselves. 

These farmers were also questioned 
regarding reports made to them by their 


 COOPERATION 


COOPERATION 


officers at local meetings. Four hun 
dred and twenty-three reported that ade 
quate reports were rendered; 130 said 
that they had heard no reports; and 132 
simply did not know the answer to 
the question. Fifty-nine stated that 
their meetings did not give the officers 
the benefit of the opinions of the 
membership. 

Is the financing of a cooperative by 
its members a hardship? Eighty-nine 
replied in the affirmative but 612 in the 
negative. Only 17 had ever borrowed 
money on their shares of stock; 521, if 
they were selling their stock, would 
hold out for its par value and 99 re 
ported that their stock was not for sale. 
On the other hand, 18 said they would 
sell out for less than 94 cents on the 
dollar. 

All in all, the most frequent cause of 
dissatisfaction seems to be what the 
members themselves consider excessive 
overhead expenses: More than 10 per 
cent of all the answers criticizing the 
association were objections to salaries, 
expenses, or other deductions. One- 
seventh of all the members believe the 
organizations are not efficiently man 
aged. One-third reported that they had 
no advantages over the non-members. 

Obviously, these four large marketing 
cooperatives are not getting across to 
their members the kind of education 
which keeps them informed as to what 
is going on, and which makes them feel 
that they are actively .participating in 
the control of their own institutions. 
There is too great a lack of social obli 
gation. We believe that the same criti 
cism could be made of 98 per cent of our 
consumers' societies in this country also. 
We are thrown back once more on the 
old truth that cooperation as a mere 
business institution with efficient man 
agement and good returns to the mem 
bers is not enough. There can be no 


genuine cooperative society without an 
intelligent and active body of coopera 
tors constituting its membership 

C. L. 

RECOGNITION FOR HIGHEST 
TYPE OF COOPERATIVES 

By action of the Board of Directors 
at its meeting in November, the Certifi- 
cate of Merit has definitely been ap 
proved, and will be presented each year 
beginning with 1929, to the affiliated 
societies of The League which attain the 
highest standards of cooperative prin- 
ciples and business practices. The spe 
cial sub-committee, composed of the 
Secretary, Treasurer and Chief Account 
ant of The League, which was appointed 
to work out the financial conditions 
required for eligibility, has now com 
pleted its work, and the final standards 
are as follows: 

REQUIREMENTS FOR CERTIFICATE OF 
MERIT 

1. That the fundamental principles of Eocli- 
dale cooperation be observed. 

2. That semi-annual financial reports be ren 
dered to District or National League. 

3. That audits be made at least annually, and 
by accountants acceptable to the Directors 
of The League. 

4. That educational activities be carried on,— 
nature and extent of which to be accept 
able to the Directors of The League. 

5. That preference be given Cooperative Whole 
sales where such wholesales exist. 
C. That the following business principles and 
financial conditions be met: 
A. There must be shown a net gain (be 
fore distribution of rebates) for the 
previous fiscal year; 

B. There must be an excess of assets over 
liabilities (latter to include capital 
stock) ; and of current assets over 
current liabilities; 

C. Accounts receivable at time of audit 
must not exceed 10% of gross income 
from sales for the fiscal year just 
closed ; 

D. Credit granted individual members 
- must not exceed the amount of such 
members' invested capital. 


News and Comment 


INTERIM DIVIDENDS 

Dedicated to Cooperators Who Can Think 

Without some sacrifice of self there can lie 
no true cooperation. 

* * # 

Cooperation, like Christianity, was born in 
a stable and will probably perish in a palace. 


The ultimate truth of Cooperation must le 
discovered; it cannot be taught—except by t'<f 

teacher named Experience. 
# * * 

How illuminating it would be to hear (*f 
"Famous Twenty-Eight" comment upon "ie 
way in which cooperators of the. present g?*' 
eration interpret their modest program. 

[T. W. Merce'l 


DKIVE FOR EXEMPTION 
FROM INCOME TAXATION 

The League started in December its 
second drive to get from the 1,700 con- 
. liners' cooperatives in the United 
States exact figures regarding the taxes 
paid to the federal government in 1928 
pnthe income made during 1927. 

j{ore than a year ago the Ways and 
jleans Committee of Congress, in draft- 
jno- proposals for changes in income tax 
law, suggested to Jules Bnglander, tax 
expert for The League, that if he could 
prove that consumers' societies were con 
tributing less than $30,000 to the govern 
ment on income taxes annually, such 
societies could win exemption. The 
League sent out a series of emergency 
letters to all such associations in the 
United States asking for actual figures. 
Less than 500 replies! came in, and the 
evidence available for* Mr. Bnglander to 
present at Washington was insufficient 
to win the case for the consumers' co 
operative movement. 

Every consumers' cooperative in the 
country, whether affiliated with The 
League or not, should reply promptly 
to this questionnaire. The societies that 
are paying taxes have an excellent op 
portunity to win for themselves exemp 
tion. Those that are not paying such 
taxes today hope to make more money 
in the future and thus make themselves 
liable for federal taxes. It is to the 
interest of every such association in the 
country to send this small amount of 
information to The League office. 

Readers 'of COOPERATION are urgently 
requested to make inquiries at their local 
societies and if this questionnaire has 
not been answered, to see that it is 
answered at once. 

WHAT THE CENTRAL EXCHANGE 
AT SUPERIOR HAS DONE 

Eleven years ago there were a num 
ber of isolated cooperative stores in the 
district. They were financially weak. 
They were operated inefficiently. They 
were in most cases in the hands of incom 
petent managers. The lack of knowl- 
fdse about cooperative principles was 
pitiable. Each store tried singly to work 
out its own problems. 


The most progressive stores realized 
that in unity there is strength. They 
formed their own central organization. 

Now the Cooperative Central Ex 
change is a group of about 100 stores 
that are operated more economically 
than the competing private stores. It 
has hundreds of trained executives, 
clerks, and bookkeepers who are not only 
technicians but cooperators. It has 
directors who can really direct the 
affairs of their society. It has a mem 
bership of about 20,000 whose loyalty to 
their own stores is due to cooperative 
knowledge. Through its auditing de 
partment, it has absolute control over 
the societies. It expends thousands of 
dollars annually for cooperative educa 
tion. It has a cooperative wholesale with 
sales over $1,500,000 in 1928. 

These achievements have been possible 
because of consistent planning. They 
are the result of the combined efforts of 
a united movement. 

The aim is to do a million and three- 
quarters dollars of business in 1929. 

THE SEMI-ANNUAL REPORT FOR 

CONSUMERS COOPERATIVE 

SERVICES 

The first six-months' period for this 
New York society ends on September 
30th and shows an income of $290,000, 
$200,000 of which is from Cafeteria 
Department, $86,565 from Store De 
partment, $1,700 from the Library 
Department, and the balance from 
Bakery sales and interest income. It 
looks like pretty near the $600,000 mark 
when the fiscal year closes next March 
31st. 

Reserve fund now totals $110,600, 
which is well over double the amount of 
paid-in capital stock ($53,832). There 
are no bills payable and no accounts 
receivable—a mark which many a store 
cooperative might advantageously strive 
to emulate. 

At the members' meeting- on October 
8th, the directors were authorized to 
carry out the housing program set before 
the shareholders, and to invest not over 
$70,000 in the project. As tli3 cash and 
securities on hand come to almost 


 COOPERATION 


COOPERATION 


III1 


$90,000, this is not as rash a proposal as 
it sounds. 

Inquiries were sent out to all share 
holders in October, asking them whether 
they were personally interested in a 
housing plan. Considerably more than 
500 of them replied in the affirmative, 
though only 327 expressed a direct inter 
est in moving into such a cooperative 
house in the near future. Of these 327, 
152 wanted two-room apartments, 113 
wanted three rooms, and 62 wanted four 
rooms. Eighty-seven per cent of these 
folks stated that they were willing to 
pay $25 or -more per room per month 
for a good quality apartment in the 
Manhattan area, most expensive borough 
of New York in which to live. 

PLYMOUTH LOSES A MANAGER 

The Plymouth Cooperative Associa 
tion, which last year completed its fif 
teenth year of business, at the end of 
1928 loses the services of its most effi 
cient manager, William Bobbins, who 
has been with them almost from the 
start. Though this cooperative store has 
the customary number of chain stores to 
compete with, rebates to patrons were 9 
per cent at the end of the first six months 
of 1928. This society has paid from six 
to ten per cent every six months for 
many years past. And it is not a 
case of paying to members the profits on 
non-member sales, either. On income of 
$33,652, net profits were $3,207, which is 
9Vz per cent of sales. Gross profit was 
22 per cent and all expenses 12.7 per 
cent. This is exceptional for the co 
operative movement, but not for the 
Plymouth Association. Mrs. Bobbins is 
President of a flourishing- Women's 
Guild. 

WORCESTER BAKERY MANAGER 
INJURED 

Mr. Widoff, manager for the past three 
years of the Workmen's Circle Coopera 
tive Bakery, the most uniformly success 
ful Jewish Bakery Society in New Eng 
land during the past ten years, was 
severely injured early in December when 
run over by a large truck, which broke 
one of his legs at seven different places. 
He will be out of his position for several 
months. Meanwhile his place is being 


taken by one of the directors, Nath 
Meyer. D 

ENLARGED QUARTERS FOR 
PROLETCOS 

The Prolet Cooperative Bestaurant 
moved into its new quarters at 28 Unin 
Square, New York City, on Tuesday 
November 20th, still retaining its Oj,j 
quarters next door. The new place is bv 
far the largest cooperative restaurant 
in the country, having a seating capacity 
of several hundred, the most modern of 
kitchen and dining room equipment, and 
the best of storage facilities in the base 
ment. Total investment in the two 
places comes to more than $100,000. 

In the old restaurant as many as 2 500 
or 2,800 meals were served in a single 
day. During the first week in the en 
larged quarters, from 5,200 to 5,800 
meals were served daily. During the 
four months, July 1 to October 31, 1928, 
sales totalled $88,000, within the old 
restaurant. The business from this date 
forward should nearly double these 
figures. 

COOPERATION AT HANNA. 
WYOMING 

For the first time in the history of 
the Sampo Cooperative Store a finan 
cial report has been sent to the office 
of The League by the manager, Kalle 
Aronen, formerly an active cooperator 
in New York State. This report shows 
that under previous management the 
store incurred a deficit of $20,800. Dur 
ing the past six months, with a total 
business of $42,850, there is shown a 
clear gain of $3,000 for the association. 
Share capital is $8,000 and surplus ac 
count $5,700. 

A letter from Mr. Aronen, appearing 
in another column of this magazine, 
hints at some of the difficulties he has 
met out among the miners in the wild 
west. 

NEW BUILDING AT STAFFORD 
SPRINGS, CONN. 

The Workers' Cooperative Union cele 
brated the coming of a new year by mov 
ing into its new building on Main Street. 
For many years this cooperative store 
has rented its quarters, but recently be- 


me ambitious, bought a piece of land, 
C d began building. The new quarters 
&n also to house a cooperative bakery 
-1 t gg goon as a full line of equipment 
Jan be installed. 

SPENCER EDUCATIONAL COM 
MITTEE IN ACTION 

Spencer Cooperative Society, Spencer, 
v Y., is only eight months young. Mem 
bership is nearly two hundred and the 
sales for the first seven months totaled 
443,198.48. The society sells for cash 
only- There are no accounts receivable 
on its books. The business began on a 
cash basis and has remained so. The 
books of the society nvere closed after 
three months operations and the balance 
showed the business to be in a healthy 
condition. 

During the summer months several 
cooperative picnics were held and on 
December 8th, an entertainment was put 
on by the educational committee. The 
committee is formed of ten members and 
has had several meetings. The affair on 
December 8th proved that the coopera 
tive is gaining very general attention. 
Van Etten Farmers Hall was all too 
small for the good crowd of 300 that 
attended. The program included a 
musical play called "A Gala Day in a 


Cooperative Store'' given by the younger 
members, an old style costume dance, 
music, singing, comic recitals and a short 
address by Manager Nummivuori. 

OPERATING EXPENSES IN IN 
DEPENDENT AND CHAIN 
GROCERY STORES * 
(For Year 1924) 

Independent Chain 

Items Per cent Per cent 
Net sales .................. 100.0 100.0 

Cost of merchandise sold..... 80.2 ...... 


Gross margin ........... 19.8 ...... 

Expenses: 

Total salaries and wages... 10.9 7.56 

Advertising .............. .35 .67 

Boxes and wrappings ...... .6 .57 

Delivery ................. 1.2 .73 

Office supplies and postage. .2 .23 

Kent .................... 1.3 1.8 

Heat, light, power ......... .3 .18 

Taxes and licenses ........ .2 .23 

Insurance ............... .2 .29 

Eepairs of store equipment. .1 .52 
Depreciation of store equip 
ment ................. .35 .02 

Total interest ............ 1.1 ...... 

Miscellaneous expense ..... .8 1.16 

Losses from bad debts..... .4 ...... 


Total expenses ......... 18.0 


13.96 


My Livest News 

' TANGIBLE FARM RELIEF 

The saving possible in cooperative 
property insurance is well illustrated by 
Policy No. 1 in the Farmers Union Co 
operative Insurance Company of Ne 
braska. This policy, covering fire, 
lightning, windstorm, and tornado on 
$15,000 of farm property, was taken by 
Mr. J. 0. Shroyer, Humboldt, Nebr., 
when the company began business on 
October 25, 1918. At the end of ten 
years, or two policy periods, his total 
cosHf carrying this insurance had been 
$295.63—consisting of the advance as 
sessment of $112.50, two $1 policy fees, 
"ve assessments - of 1.5 mills each, two 
assessments of 2.1 mills each, and a 
short-time assessment of $5.63. In a 
Profit-seeking insurance company, Mr. 
onroyer would have paid at least $25 
tor each $1,000 of his insurance for each 


Profits .............. 1.8 ...... 

* Compiled by the National Chain Store 
Grocers Association. 

Item of the Month 

five-year period, or a total in the ten 
years of $750. His saving through co 
operative insurance, therefore, was 
$454.37. Here is tangible '' farm relief.'' 
It also suggests how we can prevent 
swollen fortunes. 

L. S. H. 

HOW THEY RAISE FUNDS FOR 
EDUCATION 

The Women's Club of the Amalga 
mated Cooperative Apartments, New 
York City, recently held a three-day 
bazaar to raise money for the coopera 
tive library and other educational work. 
The Treasurer of the Club announces a 
clear gain of $2,500, $1,000 of which 
will go for library equipment, $1,000 
for books and $500 to assist in the or 
ganization of a kindergarten for the 
children of the members. C. L. 


 COOPERATION 


COOPERATION 


Northern States Cooperative League 


I 


INTRODUCING OURSELVES 

The Northern States Cooperative League 
and its work is not unknown to the readers 
of this magazine. The editor of "Coopera 
tion" has told them from time to time 
something about our League and its doings. 
But, beginning with this issue, our League 
will for the first time be represented by a 
special section, the material for which has 
been furnished and edited by ourselves. 

Our last convention, held at Ironwood, 
Mich., in August, after careful deliberation, 
decided to discontinue the publication of 
the "Northern States Cooperator" and 
instead take space in "Cooperation" every 
month for material concerning our League 
and its efforts in the cooperative educational 
field. Centralization is the watchword of 
our day and we want to be up-to-date. 
From now on, we shall consider "Coopera 
tion" our legitimate,organ and are pledged 
to work for the increase of its circulation 
and for its betterment in every respect. 

Minneapolis, Minn., Dec. 6, 1928. 

NORTHEKN STATES COOPERATIVE 
LEAGUE, 

By V. S. Alanne, Executive Secretary. 

LEAGUE BOARD MEETS AT 
CLOQUET 

The full hoard of directors of the N. S. C. 
League met at Cloquet, Minn., Sunday, De 
cember 2. All board members with the 
exception of Brother Edberg were present. 
Over six hours were spent in intensive dis 
cussion of matters on the agenda. 

The Executive Secretary of the League 
gave an oral report on the Yearbook, his 
two weeks' trip to North Dakota, and vari 
ous other matters. 

Plans for the First National Yearbook, 
to be issued in 1929 under the management 
of the League's Executive Secretary, were 
discussed in detail and Bro. Alanne was in 
structed to convey the wishes and sugges 
tions of the Board in this respect to the 
National Yearbook Committee, who will 
have it in charge. The directors felt that 
all the large affiliated societies of the 
League, as well as all district leagues, 
should edit their own sections in the Year 
book so as to reduce to a minimum Secre 
tary Alanne's work in the final editing. 

The question as to whether or not the 
N. S. C. League should make another at 
tempt to get the isolated cooperative store 
societies in the Twin Cities' commercial 
district to start their own joint buying or 
ganization precipitated a lengthy discussion. 


Some of the directors took the view th 
it was useless for the League at this tim 
to spend much effort in that direction 6 
the sentiment among the hitherto isolate! 
cooperative stores was not yet ripe for su •! 
a move and nothing definite might be ac' 
complished. However, the Executive Sec 
retary of the League was finally authorized 
to "proceed to find out what possibilities 
there are among the cooperative stores in 
the Minneapolis district" for starting guc], 
an organization. 

A special session of the Board was held 
at Hotel Solem at Cloquet in the afternoon 
to discuss the question: What could the 
N. S. C. League do to help the New Era 
Life Association to get business support 
from the cooperative societies and indi- 
vidual cooperators in the district? Mem 
bers of the local board of directors of 
the Cloquet Cooperative Society had been 
invited to attend this session. Many ex 
tremely interesting facts about life insur 
ance were brought out during the discussion. 
The unanimous opinion of those present was 
that it is the duty of all cooperators to give 
their business in the field of life insurance 
to the New Era, particularly now that The 
Cooperative League has also given the New 
Era its endorsement. 

The Executive Secretary of the League 
was authorized to attend the convention of 
the Wisconsin Union of the American So 
ciety of Equity at Plymouth, Wis., Dec. 
11-13, as a fraternal delegate. 

Later in the evening a cooperative propa 
ganda meeting was held at the Workers' 
Hall. Directors Burandt, Branch and Eonn 
appeared as speakers and besides this there 
were several musical and dance numbers. 
The program meeting was well attended and 
can be considered very successful in every 
respect. 

CENTRAL EXCHANGE SOCIETIES 
HOLD DISTRICT CONFERENCES 

The Educational Department of the Co 
operative Central Exchange have arranged 
to hold educational district conferences 
simultaneously in various parts of their 
territory. Such meetings were held on 
December 16, beginning at 9 a.m. at the 
following localities: Gilbert, Cloquet and 
New York Mills in Minnesota; Ironwood. 
Mass and Marquette in Michigan, and 
Superior in Wisconsin. The agenda for 
these conferences included: (1) Plans for 
activities in 1929; (2) Centralization; (3i 
Standardization of sales and advertising 


ethods; (4) Questions of local nature pre- 

nted by participating societies. 

These district conferences are expected 
to have a great influence in furthering cen 
tralization and standardization, as well as 
in stimulating the societies into greater 
activity and further accomplishments in 

1029. ' 

# # # # # # 

THE NELSON AND ALBIN CO 
OPERATIVE MERCANTILE 
ASSOCIATION 

Much has not been known hitherto in co 
operative circles concerning this cooperative 
store association which is one of the oldest 
in Minnesota. It was organized in 1896 
1)V farmers in the Nelson and Albin town 
ships of Watonwan county. Their post 
office address is St. James, Minn. The busi 
ness is at present being managed by 0. G. 
Jukulen. The membership is nearly all 
Scandinavian. 

During the fiscal year ending Jan. 14, 
1028, the N. & A. Coop. Mercantile Associa 
tion sold merchandise to the amount of 
$53,960.39. Their net profit for the year 
was $5,178.55 At the end of the fiscal 
periods their total resources amounted to 
$48,017.61. The paid-in capital stock was 
$12,260.00. Besides a reserve fund of 
$17,048.49, there were undivided profits 
("retained dividends") to the amount of 
$7,738.88. The balance sheet shows one 
decidedly unfavorable feature: the accounts 
receivable ("outstanding book accounts"), 
Jan. 14, 1928, amounted to the staggering 
total of $23,869.09, of which there was a 
doubtful accounts' reserve of only $1,111.97 
which to us looks entirely inadequate. If 
the farmers in the Nelson and Albin town 
ships could be convinced of the great ad 
vantages of cash trade, the financial stand 
ing of their cooperative store organization 
could be vastly improved and losses from 
bad accounts eliminated. 

There are 203 shareholding members in 
the organization, which owns its own store 
building. 


MISCELLANEOUS NEWS ITEMS 

The Farmers' Exchange of Duluth, one of 
pur affiliated societies, is going to change 
its manager the first of the year. Mr. Fred 
Hendrickson, who for several years has 
successfully managed the business of the 
organization has tendered his resignation on 
account of failing health, and J. D. Dahl- 
strom, a graduate of the N. S. Coop. League 


Training School, has been elected his suc 
cessor. We wish Brother Dahlstrom success 
in his new job. 


Gideon Edberg, director of the Northern 
States' Cooperative League and chairman 
of the Educational Committee of the Frank 
lin Cooperative Creamery Association, was 
seriously injured in an accident at Minne 
apolis early in the morning of November 15. 
A switch engine collided with the milk 
wagon Bro. Edberg was driving. The acci 
dent was so serious that Bro. Edberg prob 
ably has to stay at a local hospital for many 
weeks before he will be well enough to be 
around. As he was one of the most 
enthusiastic and active cooperators in 
Minneapolis, his absence will be felt very 
much in the local activities. 


Two new branch stores will be opened in 
December, 1928, by Cooperative Central 
Exchange societies. The Settlers' Coopera 
tive Trading Company will open a second 
branch store at Trout Creek, Midi. Besides 
their main store at Bruce Crossing, the 
society has for some time operated a branch 
store at Paynesville. 

The Lawler Farmers' Cooperative Asso 
ciation are opening their first branch store 
at Tamarack, Minn., a few miles northeast 
of Lawler. 

The Central Exchange societies thus con 
tinue to show admirable virility. They are 
busy developing their own chain stores 
which undoubtedly will be able to well hold 
their own against the competition of the 
"private" chain stores if these ever get a 
notion to invade the territory to any greater 
extent. 

The Central Exchange now has one affili 
ated society which operates four stores, 
four societies with three stores each, and 
not less than ten societies with two stores 
each. This does not include the Brooklyn, 
N. Y., and Waukegan, 111., societies which 
also are affiliated with the Exchange but 
not located in the N. S. Coop. League 
district. 


Not less than 46 different cooperative 
societies took space this year in the North 
ern States' Coop. League's fourth yearbook 
which has been ready for distribution since 
November 1. The total income for the 
League from the yearbook has so far 
amounted to a little over $2,900. Single 
copies of the book may still be had from 


 10 


COOPERATION 


COOPERATION 


11 


the League Office, 2108 Washington Ave. N., 
Minneapolis, for 60 cents, including post 
age. Societies ordering 10 copies or more 
will be given a rate of 40 cents a copy, plus 

postage. 

****** 

The office of the Franklin Cooperative 
Credit Union has been recently removed 
from the North Plant of the Franklin 
Creamery to the office of the Northern 
States' Cooperative League, 2100 Washing 
ton Avenue North. The Credit Union has 
been rapidly increasing its business, the 
total volume of which this year will exceed 
$20,000. The assets of the Union are now 
about $11,000 and the net surplus from this 
year's business will amount to $900. 

****** 

A very successful program meeting was 
arranged jointly by the Franklin Educa 
tional Committee and the Credit Union Fri 
day evening, December 7, in the Franklin 
auditorium. Among the interesting num 
bers we may mention the showing of the 
excellent new two-reel Franklin film, called 


"The Land of Health," song numbers bv 
the Franklin Mixed Quartette, talks by J^ 
Nordby and Mr. Brown (treasurer of th 
Franklin Credit Union) and a highly accon)6 
plished whistling number rendered by a 
student of the University of Minnesota 
The meeting was well attended by em 
ployees of the Franklin Creamery and their 
wives and everybody went home that night 
satisfied and with a feeling of good will 
toward their cooperative institution which 
has come to mean a great deal for them. 
***** 3j 

Mr. Anthony Eud, one of the directors 
of the Franklin Cooperative Creamery As 
sociation, died November 24, 1928, at 
Minneapolis, in his fifty-sixth year, after a 
lingering illness. Mr. Eud was very much 
interested not only in the Franklin organi 
zation but also in the Northern States' 
Cooperative League and in the Cooperative 
Movement in general. He attended several 
of the League's conventions as a Franklin 
delegate and was one of those who keenly 
realize the need of education in cooperation. 


Eastern States League 


FIELD TRIP BY DIRECTOR 
RUBINSON 

At the last directors' meeting of the 
Eastern League, Mr. Rubinson was re 
quested to make a trip among the Jewish 
bakeries in Massachusetts during- No 
vember. He made this trip leaving New 
York Friday, November 23, and return 
ing on Thursday, the 27th. Spending 
parts of Saturday and Sunday at Brock 
ton, he had an excellent opportunity to' 
inspect the plant of the Hebrew Co 
operative Bakery and to confer with K. 
Weisbrod, the manager, and Mr. Yaffe, 
the president, as well as with several 
members of the board. He especially 
commends the enterprise of these people 
in entering the gentile bakery field with 
a high quality loaf of white bread, well 
wrapped in wax paper bearing The 
League label. 

On Saturday evening, he went to the 
Working-men's Cooperative Bakery of 
Lynn and had a conference with the 
manager, Mr. Yellowitz, and Mr. Gor 
don, the president. 

Early Sunday evening he attended a 
board meeting of the Workmen's Circle 


Cooperative Bakery in Worcester and 
later spoke before a general membership 
meeting. Mr. Eubinson believes that the 
Worcester Bakery is more truly a genu 
ine consumers' cooperative than any of 
the others; is more prosperous finan 
cially, and has the finest and most up-to- 
date bakery plant. This bakery sells 
almost all of its goods directly from its 
own retail store and does a considerable 
business with non-Jewish people. 
Cedric Long, Secretary of the Eastern 
League, was invited to speak before this 
group in December. At the meeting, 
refreshments were served. 

At Springfield, Mr. Eubinson met 
Manager Silberman and the Board of 
Directors in a conference very much 
worth while. 

The Lynn and Brockton bakeries are 
already paid-up members of the League. 
The Worcester bakery has been a mem 
ber previously but has not renewed for 
1928; and the Springfield bakery has 
never been affiliated. The latter two 
cooperatives have now promised to pay 
membership dues for the present year, as 
a result of Mr. Rubinson's visit. 


MANAGER FOUND FOR EASTERN 
COOPERATIVE WHOLESALE 

Beginning in January the Eastern 
Wholesale definitely sets up in business, 
takes over the assets and the business of 
the Joint Buying Committee of the East 
ern States Cooperative League, and pro 
claims to the world the existence of one 
more cooperative wholesale in America. 

Adolph Wirkkula, for the past five 
years manager of the Cooperative Trad 
ing Association of Brooklyn and for the 
pa'st fifteen years active as a manager in 
some cooperative society or other, is leav- 
iii°- Ms Brooklyn position and taking the 
wholesale post. This action was defi 
nitely confirmed at a meeting of the 
Wholesale directors on December 12. 

William Marttila, formerly manager 
of Eteenpain Publishing Company of 


WTorcesterj has been appointed the new 
manager of the Brooklyn Association. 


LECTURE COURSES SUCCESSFUL 

Late in November, Henry Askeli be 
gan a series of lecture courses in New 
England among several of the Finnish 
Societies. His regular course of twelve 
lectures is planned to continue one week, 
six on Psychology, six on Coopera 
tion—one hour on each subject each 
evening. 

At this writing the lectures have al 
ready been given in Gardner, Fitchburg, 
Maynard and Quincy—four weeks in all. 
In every case the attendance has in 
creased with each lecture. The course 
will be given at Plainfield, Conn., in 
January. 


Cooperation Abroad 


PROGRESS IN GERMANY 

A well managed cooperative organiza 
tion which has a reasonably large volume 
of business is a highly profitable under 
taking1. The German Wholesale Society 
at Hamburg according to the last report 
had a turnover of more than 313 millions 
Reichsmark. 

Profits were 20 per cent greater than 
in 1927. Reports for 1927 and 1928 
show sales and profits as follows: 

The total turnover 

from January to 

September 1928. 313,272,879.60 Marks 
from January to 

September 1927. 25:9,509,271.82 " 


the increase 
for 1928 was. 53,763,607.78 " 20.72% 

The turnover of this organization for 
products of its own factories was 

from January to 

September 1928. 75,833,325.16 Marks 
from January to 

September 1927. 42,064,458.83 " 

the increase 
for 1928 was. 33,768,866.33 " 80.28% 

--Prom the October issue of the 
Konsumgetnossenschaftliche Eundnchau. 
Translated bv Carl Stoike. 


ITEMS 

A great stir has recently been caused 
in cooperative circles in England be 
cause a Mr. Robinson, elected to the 
Board of Directors of the Cooperative 
Wholesale Society, has been denied his 
seat. He was charged with having 
actively canvassed for votes. Plenty of 
other office seekers in the British Move 
ment are guilty of- the same infraction 
of the rules, but Robinson is the first one 
to be ptinished. 


A. W. Golightly, a member of the 
Board of Directors of the Cooperative 
Wholesale Society and Chairman of the 
International Cooperative Wholesale 
Society, automatically retires from his 
position in the English Wholesale this 
year, having reached the age limit. Mr. 
Golightly is also a member of the Russo- 
British Grain Export Company. In 
these various capacities he has traveled 
not only over all the countries of Europe 
on different occasions but in the summer 
of 1928 attended the International 
Wheat Pool Conference in Canada and 
the Congress of the Canadian Coopera 
tive Union. 


 12 


COOPERATION 


COOPERATION 


13 


T. W. Mercer, editor of the Coopera 
tive Official and one of the editors of the 
Cooperative Ne-ivs, in September refused 
to become the cooperative candidate for 
Parliament. He gives two reasons for 
this action: First, that he cannot afford 
to take this time away from his editorial 
work; and second, that he is less inter 
ested now than he was several years ago 
to sit in Parliament. He says, '' Experi 
ence breeds deeper wisdom; and on 
closer acquaintance the majority of 
M. P. 's appear to be no more than pup 
pets, idle men who loaf about waiting 
until they can record a vote by passing 
through a division lobby." 

****** 

The G.E.C., the wholesale of the Ger 
man speaking cooperatives in Czecho 
slovakia, has been building since last 
April what will be the largest grocery 
warehouse in the country-. It will have 
eight floors of 7500 square yards area 
each. 

According to present indications the 
province of Saskatchewan, Canada, will 
soon be the home of the largest and best 
organized section of the consumers' co 
operative movement in the western hemi 
sphere. In the last week of October the 
board of the provisional organization of 
the Saskatchewan Cooperative Whole 
sale Society met in Saskatoon to discuss 
the routine work necessary to carry out 


incorporation and permanent organiza- 
tion. There were present representatives 
of the United Farmers of Canada 
Saskatchewan Section, and of the 
cooperative stores in the province. An 
executive committee was chosen. Jjj. 
Frank Eliason was appointed secretary- 
treasurer. A board of arbitration was 
selected to supervise the transfer of the 
trading department of the U.F.C. to the 
new wholesale, the actual existence of 
which will commence on January 1 
1929. The annual trade of the depart 
ment is in excess of $125,000. It caters 
to some 1000 local retail units, 200 of 
which have recently transformed them 
selves into independent incorporated co 
operative stores that will become mem 
bers of the new wholesale when it comes 
into active existence. 


In England, where religion and the 
established church still are powers to be 
reckoned with, two enthusiastic coopera- 
tors have recently been appointed to the 
two chief positions in the Church of 
England. Dr. Cosmo Gordon Lang, the 
new Archbishop of Canterbury and head 
of the church, has written three pam 
phlets that have been published by the 
British Cooperative Union, and the new 
Archbishop of York, Dr. W. Temple, is 
a former president of the Workers' Edu 
cation Association. (Coop. Union News 
Serv., Sept., 1928.) E. A. N. 


The Point of View 

By J. P. WABBASSE 


IT'S BETTER TO PAY CASH 

People pay for what they consume. 
There are two classes who think they do 
not: the thieves and the beggars, but in 
the end even they, too, pay. 

We might as well make up our minds 
to the fact that we have to pay for all 
we get. There is no way to avoid pay 
ing. Or, to put it the other way around, 
the seller collects by some means or other 
for what he sells. He collects also for 
what is stolen and for what he gives 
away. The consumer pays it all. 

The more we think about this the 
clearer it becomes. Things have to be 


paid for, as they are consumed and their 
value destroyed. That means especially 
food, clothing, and the little things of 
everyday life. When one buys a house, 
that is another matter. A house is not at 
once consumed. It is partly an invest 
ment. Usually, it depreciates 2 or 5 per 
cent a year. Then to pay 2 or 5 per cent 
of its value each year is all that the pur 
chaser need feel called upon to pay. 
Usually he pays more, because he can 
afford more, for as a renter he has been 
in the habit of paying to a landlord 10 
per cent of the value of the property 
each year. 
But people do not buy houses at co 


operative stores; they buy bread and 
potatoes. And the time to pay for them 
is when they are taken away from the 
store. Value for value. 

If one member fails to pay for what 
he takes from the store, the cost must be 
borne by all the other members. If many 
members fail to pay, the burden becomes 
so great that the society fails and all the 
other members lose. 

If one member takes goods home, con 
sumes them, and destroys their value, 
without leaving enough money at the 
store to replace the goods he takes, the 
other members have the same right to do 
the same thing. For every member who 
trades on credit, the society has to get 
from someone else the money to buy 
more goods to carry on its business. To 
get this extra capital costs money. To 
get credit from the wholesalers costs 
money. A credit business increases the 
costs of a cooperative store so much that 
it is doubtful if it pays to try to keep it 
going. Experience shows that the co 
operative store that gives credit cannot 
compete with the profit-making chain 
store that does a cash business. "Why 
keep such a cooperative store alive? 
Why ask people to come to the coopera 
tive store which is run so uneconomically 
that it has to charge more than some 
other store run for profit? It is not 
worth while. Cooperation can never be 
built up in that way. 

In Europe, where cooperation is big, 
the business is done for cash. The poor 
est and the neediest families do not get 
credit. Nor do the richest. In Europe 
it is well known that if cooperative busi 
ness is to succeed it must be cash busi 
ness. The members want it to succeed. 
And it does succeed. 

The chief cause of the failure of co 
operative stores in the United States is 
inefficient management. The second 
cause is giving credit. But the two are 
very closely united, for the inefficient 
management is usually responsible for 
the big volume of charge accounts. Credit 
business in a cooperative store is ineffi 
ciency in management. 

Credit means additional cost. The 
credit purchase has to be entered in the 
books. Bookkeeping is expensive. 

Credit means a certain percentage of 
losses from bad debts. It means also 


loss of members, for the member who 
gets credit often becomes hopelessly in 
debt and then he drops his membership. 
It means bad feeling. 

Credit robs the member of his freedom 
to choose and order as he likes. It obli 
gates him" and makes him servile. If he 
is reckless, it often encourages him to 
overbuy and to order things he would 
get along without if he were paying 
good hard cash. For the manager and 
clerks, credit spoils the joy of working. 
It places a barrier between the purchaser 
and the business of the store. 

For the member who owes the store 
money, it spoils his joy of living by mak 
ing him constantly carry the burden of 
debt. It reacts badly on everyone who 
has to do with it, breeding suspicion and 
friction. 

In the end, credit does not save, but 
impoverishes. Many a family is driven 
to ruin by credit. 

Cooperation should help to get rid of 
debt, the curse of working people. Hon 
est people should join cooperative socie 
ties to keep out of debt. No society is 
fair to its members that encourages debt. 

Cash is magic. It can buy better 
goods. It can buy cheaper goods. It 
can get better terms and quicker deliv 
ery. It can command better quality. 

Credit is given by the private mer 
chant only to selected customers. But if 
the cooperative store gives credit to one, 
it must give credit to all. Cooperation 
is democratic and for all alike. Credit 
given to some and denied to others means 
dissatisfaction and bad feeling, and store 
failure. Credit to all is the quick and 
sure road to failure. 

The habit of credit-trading makes no 
provision for a rainy day. Indeed, it 
does just the opposite; collapse and dis 
aster are sure to come with the rainy 
day where a store is deep in credits. 
The practice of giving credit brings fail 
ure at just the time when strength is 
most needed. The store with its books 
full of credit goes on the rocks as soon 
as hard times arrive. 

Every experienced cooperator knows 
the evils of credit. He would like to see 
it abolished utterly. 

Profit business, on its side, is encour 
aging credit. The competition is so 
great that credit and installment selling 


 14 


COOPERATION 


COOPERATION 


15 


I 


have become a part of the smart sales 
manship used to whip up the consumer 
to buy. Millions of people are caught 
in the trap and spend their lives in debt. 

Cooperation should move in the other 
direction, and make for solvency and 
independence. 

It can be done in these United States. 
It is being done. Cooperative societies 
with wise guidance are putting their 
business on a cash basis. In many cases 
some old fogy head has said, "You will 
ruin the store if you require cash pay 
ment." In no case has a society failed 
because of changing from credit to cash. 
"A few undesirable members have been 
lost is about all we have suffered'' is the 
worst that has happened. And then the 
strength of the societies has begun to 
improve. This is the common experience. 

Some societies just go ahead, and, by 
a resolution approved by the members' 
meeting or by the directors, change their 
business to strictly cash terms. Even 
this rather abrupt method succeeds. But 
the less harsh methods are to be recom 
mended. 

In Germany practically every con 
sumers' society has a cooperative bank 
connected with it. The bank has a branch 
in every store. The bank pays interest 
on deposits. The member puts in the 
bank some of his surplus cash, some of 
his wages, or the savings-returns paid by 
the store. Each member makes it his 
business to have a bank account in the 
society's bank. There are no safer banks 
than these in the country. And the ac 
cumulation of funds in these thousands 
of banks makes credit unnecessary. 

The cooperative bank, or credit union, 
in the United States, is the ideal solution 
of the problem. In this country the law 
does not permit a cooperative store to do 
a banking business, but it does permit all 
of the members of a cooperative society 
to organize a credit union and have the 
office in the store. 

If every member of every cooperative 
society in the United States were a mem 
ber of a credit union, with its headquar 
ters in the cooperative store, the most 
important conceivable step would be 
taken to strengthen the cooperative store 
movement in this country. And the 
credit union can be started with less 
than $100. 


Some societies abolish credit trading 
by asking each charge account member 
to deposit with the store in advance a 
sum of money equal to two weeks' trad 
ing. Then a credit slip is issued to the 
member, against which he trades. 

Some societies have succeeded well 
with "credit books." The member buys 
from the store a little blank book for 
$10. Each time he makes a purchase the 
amount of the purchase is entered in the 
book and added to the last amount. 
When the last entry equals $10 the credit 
is exhausted and he buys another book. 

Another method is to enter the credit 
of a cash payment in the book, and sub 
tract the total of each purchase from the 
credit. Then the member sees how much 
balance he has left against which to 
trade. 

Also books of stamps are sold by some 
stores for $10. Some sell a $10 book 
for $9.50, thus giving the members 5 per 
cent discount for payment in advance. 
This is not to be recommended, but it is 
used where the problem is difficult. 

For people who prefer to bring the 
cash and pay the cash, the matter is 
simple. But for families who have goods 
delivered and who send the children to 
the store, some form of credit book is 
most convenient. It may be left at the 
store. 

These methods of advance payment 
for what is bought are not only good for 
the members, but especially good for the 
society, for they provide capital in ad 
vance to buy for cash and to get the best 
prices and discounts. Such a system of 
business, experience shows, makes all the 
difference in the world with a society. 
Its whole tone and character are changed. 
It is like a person who gets the ruddy 
glow of health and the joy of vigor after 
an illness. 

Where are members to get the money 
to start the advance payment method? 
The best way to get it is to save it until 
enough is in hand to start right. This 
may mean giving up some luxury, like 
tobacco or the movies, for a while; or it 
may mean actually depriving the family 
of some real need for a time. 

The "brother-in-law" method is often 
used. That consists in borrowing the 
money from some near relative, and then 


paying him as soon as possible. Well, 
why not? Is that not better than bor 
rowing it from the society every day? 

When once started, the cash method 
runs along naturally. It is a little thing, 
but it has to be done only once. 

It is better to be a week ahead instead 
of a week behind. Get ahead and stay 


ahead. Don't let credit command you; 
command credit. Don't eat other peo 
ple's food; eat your own food—it is 
healthier and better. Don't wear other 
people's clothes; wear your own clothes 
—you will stand up more erect and look 
better. Get out of the clutches of credit, 
and life will be happier and sweeter. 


Book Review 


FOURTH YEAR BOOK OP THE 
NORTHERN STATES CO 
OPERATIVE LEAGUE 

The Fourth Year Book of the North 
ern States League is by far the most 
ambitious and best yet turned out by 
that enterprising organization. It con 
tains upward of 300 pages, is well 
bound, well printed, and well edited by 
V. S. Alanne, the Executive Secretary 
of the League. There are special articles 
contributed by ten or fifteen of the fore 
most leaders and workers in the Ameri 
can movement, among them being num 
bered not only officials of the national 
and district leagues, but also such gov 
ernmental experts as Florence E. Parker 
of the United States Bureau of Labor 
Statistics, R. H. Ellsworth of the U. S. 
Department of Agriculture, and J. H. 
Hay of Minnesota. There are scores of 
photographs showing individuals, vari 
ous groups, conventions or training 
schools, many of the more important 
cooperative buildings throughout the 
country, and some graphic charts dis 
playing the development of such insti 
tutions as Franklin Cooperative Cream 
ery Association and the Cooperative 
Central Exchange. Of course, statistics 
for the Northern States League itself 
and for its two largest members, Central 
Exchange and Franklin Creamery, are 
given in full; but impressive tables for 
many of the local societies in other parts 
°f the territory or even in other sections 
of the country, are also included. 


The largest single section in the book 
is that accorded to the Cooperative Cen 
tral Exchange, which takes 60 pages. 
Franklin Creamery takes 44 pages. 
Other institutions which are reported at 
considerable length are the Cloquet 
Cooperative Society, Minnesota Coopera 
tive Oil Company, Cooperative Trading 
Company of Waukegan, Consumers 
Cooperative Services of New York, New 
Era Life Association, Workers Mutual 
Savings Bank and Tyomies Society. 

The bulk of the book is printed on 
white paper, the index is on green, and 
23 of the advertising pages are bright 
yellow, an arrangement which makes it 
easy for the reader to use this as a ready 
reference guide. 


NEW COURSE ENTITLED 

"Organization and Administration of 
Cooperative Societies " 

Now Offered "by the 

COOPERATIVE LEAGUE 
CORRESPONDENCE SCHOOL 

• 

It covers all the major problems con 
fronting the organizing committee of a 
new society, the board of directors of an 
old society, or committee^members, officers, 
or ordinary shareholders of cooperatives 
anywhere, anytime. 

For complete information write, 

LEAGUE CORRESPONDENCE SCHOOL 

167 West 12th Street 

New York Cits 


 16 


COOPERATION 


COOPERATION 


17 


The directors of the Northern States 
League and the editor of the book are to 
be congratulated on the fine job they 
have done. In 1929, the first Year Book 
of The Cooperative League of the United 
States of America is to be published, 
with Mr. Alanne as Editor-in-Chief. 

GOLDEN RULE COOPERATION 

'' The largest Cooperative Creamery in 
the World," the Farmers' Equity Union 
Creamery of Orleans, Nebraska,.supplies 
sufficient cream to make three and a half 
million pounds of butter annually. It 
has reached its present size of 15,000 
members during eleven years time, 
through business efficiency and educa 
tion. It circulates widely through Ne 
braska and the adjacent states, its year 
books telling what its farmer members 


have achieved through cooperation, and 
urges the farmers to help themselves by 
joining. These year books also give in_ 
formation about the better returns from 
proper feeding. 

INTERIM DIVIDENDS 

A true Cooperative Movement must he 
catholic in its scope, democratic in its form 
equalitarian in its results; whatever is less 
than this is not cooperative. 

* * * 

We ho-nor the Pioneers most when we sur 
pass them. 

* * * 

The economy cooperatives seel: economy Or 
life, not of materials. 

* # * 

Cooperation might not to lie an organisation 
to satisfy the wants of consumers: it should 
be a crusade to change their tastes. 

T. W. M. 


OFFICERS 

DIRECTORS 

MANAGERS 

EMPLOYEES 

DO YOU KNOW WHAT IS GOING ON IN THE COOPEEATIVE MOVE 
MENT IN AMEEICA? 

DO YOU KNOW HOW OTHEE SOCIETIES ABE MEETING THOSP] 
PROBLEMS WHICH CONFRONT YOU? 

DO YOU KNOW WHAT THE COOPEEATIVE LEAGUE, FEDEEATION 
OF SOCIETIES IN THE UNITED STATES, IS DOING FOR 
THE MUTUAL BENEFIT OF ITS MEMBEES? 

You Can Get All These Facts Only in the Magazine COOPEEATION 


A National Subscription Campaign is to be started soon. 
"Every Director and Employee an Intelligent Cooperator" 

Get your Subscription in Now. Avoid the Soliciting Letter 

and the 
Importunate Cooperative Agent. 

Fill out and return that form at 
the bottom of inside back cover. 


Resolutions Passed at the Sixth Congress 


The following resolutions were presented by 
the Resolutions Committee to the Sixth Con- 
o ss anc[ n'ith the exception of that concerii- 
P the formation of a district League on the 
pacific Coast were passed unanimously. 

I A telegram to Agnes IX Warbasse as 
follows: 

" We send heartiest greetings and deeply 
rpn-ret your absence. 
Signed, 

Sixth Cooperative Congress." 

3. Resolution Against Imperialistic Wars. 

"WHEREAS, with the horrors of 1914-1818 
still fresh in memory, and on the other hand 
the many threatening aspects of the world 
situation as regards not only unlessened but 
increased competition for markets, for world 
power and consequently for supremacy 
through increased armaments, the question of 
war and peace is agitating the entire world 
today more profoundly than ever in the past; 
and 

"TTHEHKAS. the consumers cooperative 
movement, whether on a national or interna 
tional scale, while in an immediate sense it is 
an economic movement to better the conditions 
of life of those elements of society who must 
secure their necessities of life as economically 
as possible, is also a movement striving 
towards an entirely different and better 
system of society, a cooperative common 
wealth where production and distribution are 
founded upon the needs of society and not 
upon profits; Be it therefore 

"KESOLVED, that The Sixth Congress of 
Tlie Cooperative League of the United States 
declares, that the cooperative movement and 
the masses of toilers organized under its 
banner are opposed to militaristic preparations 
and against imperialist wars. Such wars are 
only in the interest of that element of society 
that exists through the extortion of profit and 
the exploitation of the working masses." 

The Resolution was unanimously approved. 

Another Resolution "On Criticism of the 
Action of the Officers of The Cooperative 
League" was presented, but not pressed for 
action by a vote from the floor. 

Another Resolution asking that the Congress 
urge the International Cooperative Alliance to 
discontinue "its attacks against the Soviet 
Union Cooperative Movement" and demanding 
that "The United States Government recognize 
the government of the Soviet Union" was also 
presented, but no vote requested. 

3. A Resolution introduced at a later session 
(presented to the Committee by S. Gloverman 
of Los Angeles), was 

"WHEKEAS, there is a steady growth of 
cooperative societies on the Pacific Coast; and 

"WHEKEAS, The Los Angeles Cooperative 
Consumers Educational League is one of the 
most important ones which is also a member 
of the National Cooperative League; and 

"WHEKEAS, we firmly believe that there 
is a general desire of various cooperative so 
cieties on the Pacific Coast to amalgamate 
and form a Pacific Coast Cooperative League; 
and 

"WHEKEAS, sneh a League would be bene 
ficial to the National Cooperative League; 
therefore be it 


" KESOLVED that the Sixth Congress 
grant the request of Los Angeles Cooperative 
League to take all necessary steps to organize 
such a League and that the Los Angeles 
Cooperative Consumers League is entrusted 
to issue a call for snch a conference." 

This motion was referred by the Congress 
to the Board of Directors for consideration. 

4. Resolution on New Era Life Association: 

" KESOLVED, that this Congress adopt the 
New Era Life Association as the life insur 
ance society of the Cooperative Movement in 
the United States, subject to compliance with 
the following terms: 

(1) That the New Bra reorganizes and 
secures proper legal authority in the United 
States, as a life insurance society on a legal 
reserve basis. 

(2) That the terms on which the New Era 
shall be legally entitled to do business under 
its Charter of Incorporation and licenses 
must: 

(a) maintain its present democratic 
character, as provided in its constitution, 
subject to such improvements therein as 
may be found possible more effectively to 
vest control of the institution in the 
policyholders on such democratic basis; 

(b) provide for the distribution of the 
net surplus, after legally providing for 
the death risks incurred, and defraying 
the costs of administration, among the 
policyholders in proportion to the pre 
miums paid by them, either in cash or by 
augmentation of the amounts payable 
under their policies, and to the extent 
thereof, in accordance with the Kochdale 
plan of distribution of net revenues, 
and 

" That the insurance committee elected by 
the Congress be hereby instructed to give 
effect to this decision; and further, 

" That this adoption be not interpreted to 
bar the recognition of any other life insurance 
society which complies with the same terms 
and is not competitive." 

Approved. 

5. A Resolution of thanks to the Coopera 
tive Trading Company and the Waukegan and 
North Chicago Cooperative Association was 
presented: 

" Since the Cooperative Trading Company 
of TVankejian has shown its great interest 
in the Cooperative Movement by inviting the 
Sixth Cooperative Congress to be held in their 
city; and 

" Since the members of the Cooperative 
Trading Company, and especially its officers, 
have spared no effort in housing the Congress 
and making the days most pleasant, in every 
way; and 

" Since the members of the Cooperative 
Trading Company have responded so numer 
ously to the invitation to the mass meetings 
arranged in connection with the Congress, 
thereby showing their interest for the 
Cooperative Movement: therefore be it 

" RESOLVED that we. delegates in Congress 
assembled, express our sincerest thanks to the 
members of the Cooperative Trading Company 
and to the members and officers of the 
Waukegan and North Chicago Cooperative 
Association for the kind hospitality shown, 
and at the same time wishing them the best 
of success for the future in their glorious 
work." 

The Resolution was unanimously passed. 


 18 


COOPERATION 


COOPERATION 


II 


The Reader Writes 


A COOPERATOR IN WYOMING 

EDITOE, COOPERATION: 

I certainly am pleased to know that your 
Eastern Wholesale Department is going ahead. 
I knew it would because the cooperators need 
one there just the same as they do in the 
central states. Of course, it takes a whole lot 
of effort if it is left in the hands of a few, 
but that is the way everj'thing starts; later, 
those who were doubting Thomases will 
come in. 

I wish you had been able to come to visit 
us while you were in this part of the country, 
because that would have given you a real 
idea of the conditions some of the coopera 
tors are pushing against. We are progressing 
well. Made nearly three thousand dollars profit 
for the first part of the year and business is 
picking up. Of course, it is hard and will be 
hard for years to come, but we have succeeded 
in driving the wolf from the door. 

I'm enclosing our financial statement for 
the first part of the year. From that you will 
also see that loss for previous years is over 
twenty thousand dollars. A huge sum. The 
former manager had watered the inventories, 
and accounts receivable were carried at full 
value, although half of them were bad. But 
we are getting our head above water and are 
going to keep it there. 

This is a great country here. From my office 
window I can see snow-topped mountains 18 
to 20 miles away. No great big buildings to 
hinder the view. No trees, but sage bushes 
give color to the view. Last Sunday we went 
out hunting rattlesnakes, and we got two. We 
have plenty of them here, and they are not 
tame ones either. First time I ever had one 
running after me. Of course, we made short 
order of that race. I beat him. If you care 
to I can send you some of their rattles. You 
know the tail end that makes the noise! We 
also have bears. Cowboys, with their ropes, 
got one from the mountains a few weeks ago.. 
This is real wild west around here. 

Hanna, Wyoming. KALLE ARONEN. 

A COOPERATOR FOR MORE THAN 
TWENTY YEARS 

Editor, Cooperation: 

This is to acknowledge receipt of your letter 
of the 8th instant. Glad to know of the suc 
cessful gathering that you had. I sincerely 
hope that matters have developed to the place 
where they are on a solid foundation, and will 
go ahead from now on. I believe that it is 
possible to build up a cooperative movement 
in our country if the liberal minded people and 
the active trade unionists can be approached 
properly on the subject, and can be given 
the right kind of information with reference 
to it. 

There was one time in my life when I think 


I would have been willing to have cut loose 
from everything and undertaken that job 
However, I am too much involved in the work 
of the trade union movement now and I am 
getting along too late in life to try it. But 
there is no movement that is needed quite as 
badly as that, not alone for what it will mean 
itself, but the added strength and knowledge 
and through that, increased membership for' 
the trade union movement as well as for mak 
ing corresponding progress in a practical 
effective, political manner in the best interest 
of the average man. 

Will be glad to do anything I can from 
time to time that will be helpful. I think you 
have put a good man in my place, who will 
be able to render you greater service than I 
could, situated as I am. 
Springfield, 111. J. H. WALKER. 


MORE SAVINGS ON INCOME TAX 

Editor Cooperation: 

About a year ago we gave you the matter 
of handling the additional assessment for the 
federal income taxes for the year 1923-24. 
Mr. Englander now informs us that the case is 
coming to an end. He has signed an agree 
ment with the treasury on the basis that we 
are to pay to the treasury for 1924 taxes of 
$367.14, but there are to be no additional 
taxes for 1923. In other words, the saving to 
us for the two years amounts to $470.31. He 
expects to get the papers in the near future. 

Mr. Englander is also handling a similar 
case for the years 1925^26 and he informs us 
that a conference has been arranged at Wash 
ington for Wednesday, November 28'th. He 
seems to be a capable man for handling this 
case and we believe that he will save money 
for us. 

Yours for cooperation, 

ROCK COOPERATIVE COMPANY 


Rock, Michigan 


Arvo N. Elvers, 
Manager. 


According to a recent study appearing 
in the Survey, an equal distribution of 
all the physical property in the United 
States among its people would give to 
each family an estate valued at $16,000. 
An equal distribution of the national 
income would give every family an an 
nual salary of $3,135. 

Instead of this we have a few hundred 
multimillionaires and scores of millions 
with less than a bare living wage. 


COOPERATIVE 
DEMOCRACY 

Second Edition completely revised 
by 

JAMES PETER WARBASSE 

President of The Cooperative League of the 

United States of America 

Member of the Central Committee of the 

International Cooperative Alliance 

A Discussion of the Consumers' Cooperative 

Movement In Its Relation to the Political 

State, to the Front System, to Labor, to 

Agriculture and to the Art* and Sciences 

" We hope Dr. Warbasse's book will find 
readers throughout the world"—G. J. D. O. 
Ooedhardt, ex-President International Coop 
erative Alliance 

The Macmillan Co., New York, Publishers 

Order from 

The Cooperative League, 167 West 12th St., 
New York, TJ. S. A. Price, $1.50. The 
Cooperative Union, Holyoake House, Han 
over St., Manchester, England. Price 6 sh. 
German Edition: Verlagsgesellschaft 
deutscher Konsumvereine, Strohhause 38, 
Hamburg, Germany. Price, 6 marks. 


IS YOUR FURNITURE INSURED 
IN A COOPERATIVE COMPANY? 

This Company is 55 years old 
It has 50,000 members 
Its rates are the lowest 

Is there a branch in your town? 
If not, why not? 

WOEKMEN'S FURNITURE FIRE 
INSURANCE SOCIETY 

Care of Cooperative League, 167 W. 12 St. 
NEW YORK CITY 


STUDY COOPERATION 
AT HOME 

Correspondence Courses prepared and con 
ducted by experienced cooperators are 
now ready 

1. Elementary English 

2. Commercial Arithmetic 

3. Bookkeeping for Cooperators 

4. Advanced Course in Bookkeeping 

5. Principles and Theory of Cooperation 

6. Organization and Administration of 
Cooperatives. 


For full particulars write 

THE! COOPERATIVE LEAGUE 

167 West) lath Street 

New York City 


The Canadian Cooperator 

Brantford, Ontario, 
Canada 

The organ of the Canadian Coopera 
tive Movement, owned by and con 
ducted under the auspices of The 
Cooperative Union of Canada. 
Published monthly 75c per annum 


"The Cooperative Pyramid 
Builder" 

Official Organ of 

Cooperative Central Exchange 

is a snappy, live cooperative 
magazine. Get in line! Subscribe 

-NOW 

Subscription price 5Oc a year. 

COOPERATIVE CENTRAL EXCHANGE 

Superior, Wis. 


COOPERATION, 

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Please send COOPERATION for one year to 

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 20 


COOPERATION 


PUBLICATIONS 


—OF— 


THE COOPERATIVE LEAGUE 


I 


HISTORICAL 


3. Story of Cooperation ..............$ .10 

7. British Cooperative Movement...... .10 

38. Consumers' Cooperative Movement in 

U. S., 1926 .................... .10 

39. Consumers' Cooperative Societies in 
N. Y. State (Published by Con 
sumers' League) ............... .10 

59. Cooperative Movement in Europe... .05 

64. Progress of Cooperation in United 

States. ..................... .OS 

69. Story of Toad Lane (By Stuart 

Chase). ..................... .OS 


TECHNICAL 

4. How to Start and Run a Rochdale 

Cooperative Society ............. .10 4.00 

6. A Model Constitution and By-Laws 

for a Cooperative Society........ .OS 2.50 

8. Cooperative Education. Duties of I 
Educational Committee Denned... .10 ' 

9. How to Start a Cooperative Whole 
sale......................... .10 

27. Why Cooperative Stores Fail....... .02 1.00 

14. How to Start and Run a Women's 

Guild.... .................. .02 

15. How to Organize a District Coopera 
tive League .................... .10 

29. Credit Union Primer (By Ham and 

Robinson). ................... .SO 

43. Cooperative Housing .............. .10 

50. A B C of Cooperative Housing..... .10 

51. Model Lease for Cooperative Apart 
ment House .................... .10 

MISCELLANEOUS 

16. Model Co-op State Law............ .10 

46. Producers' Cooperative Industries... .10 

11. Control of Industry by the People 

through the Cooperative Movement .10 

12. Credit Union and Cooperative Store. .05 1.75 

13. The Place of Cooperation Among 

Other Movements ............... .25 

34. Cooperative Movement (Yiddish)... .02 1.25 

30. " When the Whistle Blew " (Story, 

by Bruce Calvert) ............... .06 

65. Reading List on Cooperation....... .10 

66. International Directory of Coopera 
tive Organizations .............. .60 V 

41. Social Aspects of Farmers' Coopera 
tive Marketing (By Benson Y. 
Landis). .................... .25 

42. Co-op Homes for Europe's Homeless. .10 

49. A Way Out ...................... .02 .75 

55. A Better World to Live In........ .05 

57. How a Consumers' Cooperative Dif 
fers from Ordinary Business..... .02 .60 

60. The " Moral Equivalent " of Jazz... .02 

62. Buttons (League emblem), J4 i"ch 

diameter.................... . 2.00 

63. Sign or Transparency of League Em 
blem. Green and gold, 8 in. diam. .25 15.00 

67. Stock certificates, engraved, with 
League Emblem. Bound in books 
of 100, 200, or 250. 

68. To Mothers ...................... .02 1.00 

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 Cooperative League; 
(20) Why Loyalty Is Necessary; (21) Cost and Crime 
of Credit; (25) Resolutions Adopted by A. F. of L.; 
(26) Factory Workers Cooperatel; (28) Do You Know 


About Cooperation in Europe?; (40) Have You 
Committee on Education and Recreation?: (45^ c,,ir ia 
Per Copy Per 100 and Stores; (47) A Man's Right to a Job. Ools 


$6.00 
6.00 

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4.00 


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MONTHLY PUBLICATIONS 

Cooperation—(In bundle lots, $7.50 per hundred) 
Subscription, per year................. tt nn 

REVIEW OF INTERNATIONAL COOPERATION 
(Pub. by the I. C. A.)........... Per Year, * 50 

$1.65 if paid by check. ' * -su 


BOOKS 

The following books are recommended as containing 
the best discussions of the modern Cooperative Move 
ment. They may be ordered through The League: 


Blanc, Elsie T.: Cooperative Movement in 
Russia.. . . . . . . . . .................... 

Brightwill, L. R.: Animal "Co-op" Book—For 
Children. ........ ................... 

Chase and Schlink: Your Money's Worth, A 
Book for Consumers 


Flanagan, J. A.: Wholesale Cooperation in 
Scotland, 1920 .......................... 

Gide, C.: Consumers' Cooperative Societies 
American edition and notes, 1922. Cloth.. 

Hall, Prof. Fred: Handbook for Members of Co 
operative Committees .................... 

Harris, Emerson P.: Cooperation, The Hope of 
the Consumer, 1918. Paper bound....... 

Holyoake: Rochdale Pioneers................. 

Jessness, O. B.: Cooperative Marketing of 
Farm Products ......................... 

Madams, J. P.: The Story Retold............. 

Mears and Tobriner: Principles and Practices 
of Cooperative Marketing................. 

Nicholson, Isa: Our Story.................... 

Oerne, Andres: Cooperative Ideals nad Problems 

Owen, Robert: Autobiography................. 

Poisson, E.: The Cooperative Republic......... 

Potter, B.: Cooperative Movement in Great 
Britain.. . . . . . . . . ................... 

Redfern, Percy: The Story of the C. W. S..... 

Redfern, Percy: The Consumers' Place in So 
ciety, 1920 ............................. 

Smith-Gordon & Staples: Rural Reconstruction 
in Ireland, 1918 ........................ 

Smith-Gordon and O'Brien: Cooperation in 
Denmark........................... 

Smith-Gordon and O'Brien: Cooperation in 
Many Lands, 1920....................... 

Sonnichsen, A.: Consumers' Cooperation. Paper 
bound........ . . . . . . . . ............... 

Stolinsky, A.: The Cooperative Movement. (In 
Yiddish) ............................ 

Warbasse, J. P.: Cooperative Democracy, 


1927. 


Warbasse, J. P.: What is Cooperation, 1927.... 

Warne, C. E.: Consumers' Cooperative Move 
ment in Illinois ......................... 

Webb, B. and S.: The Consumers' Cooperative 
Movement, 1921. Board, $2.00; cloth..... 

Webb, Catherine: Industrial Cooperation, 1917.. 

COOPERATION, Bound Volumes, 1915 to 1928 
inclusive, each .......................... 

Report of the American Cooperative Congresses, 
1920, 1922, 1924, 1926, each............. 

Northern States Year Book, 1928. Paper...... 

The People's Year Book, 1929. Cloth, $1.00; 
paper bound ........................*••• 


2.50 
.15 
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2.00 
2.00 
2.00 

.60 
1.00 

2.50 
.50 

3.20 

.25 

1.25 

.50 

1.75 

1.00 

2.00 

1.00 

1.00 

1.00 

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1.00 

1.50 
.50 

3.50 

5.00 

1.50 

1.25 

1.00 
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.60 


(Ten cents postage should be added for all boaki.) 


V . 


(OORMION 


A magazine to spread the knowledge 
af the Cooperative Movement, whereby 
the people, in voluntary association, 
produce and distribute for their own 
use the things they need. 


Published Monthly by *V <<\ 

THE COOPERATIVE LEAGUE OF T#EX'"& 

u. s. A. ^ ;\y, Q 

167 West 12th Street, New York'-Cit^.' 
CEDEIC LONG, Editor ^j» 


,ed a, Second Cla———tter, ^ce^er^, 1917, „,», ^Offic^ New York. N. V., under the Act of 


VOL. XV, No. 2 


FEBRUARY, 1929 


10 CENTS 


m 


THE BAKERY AT WORCESTER, MASSACHUSETTS, pictured above, has rohat is 

Piooaoly tJie most consistent record of financial success over the last six or eight- years 

J any Of the Jewish cooperatives in New Enfflanil. This is the new luilding they moved 

°on the tenth anniversary of them- cooperative organization. The manager, Louis Widoff 

fnnas M the doorway. " 


Ill 


 22 


COOPERATION 


COOPERATION 


23 


h1 


The Workmen's Circle Cooperative Bakery 

of Worcester 

A little over 10 years ago, on a bright Sunday morning, were one to 
enter a Jewish baker shop to buy a loaf of bread, he would have been told 
that the price of bread had gone up from 8c to lOc a pound and that the 
two-pound bread cost 20c, which meant an increase of 6c on a loaf of bread in 
practically a few months, for but 10 weeks before they had raised the price of 
bread from 7c to 8c per pound. 

All one heard in the Jewish neighborhood that Sunday was "Bread 
10 cents . . . outrage." Every one thoiight and was not ashamed to say 
it that the bakers were taking advantage of war prices and that something 
must be done about it. 

It happened that on the very same day the branch of the Labor League 
(now the Workmen's Circle) held its regular meeting. At the meeting members 
insisted that "since we are a labor organization it should be our duty to study 
the situation and see if it would be possible for us to bake our own bread." 

A committee of 15 were elected at that meeting and a week later at a 
special meeting the committee reported that they had found that the rise in 
price of bread was not justified and that there was a bakery shop on Harding 
street with a store on Harrison street for rent or sale. They therefore recom 
mended that a Cooperative Bakery be founded. They did not forget to mention 
that at least $5,000 would be necessary to start the bakery shop. 

Five thousand dollars was raised at the next meeting, a manager secured 
from Boston and five weeks after the bakers had raised their prices the Labor 
League Cooperative Bakery was selling bread at 8 cents a pound to very 
enthusiastic buyers. 

The first thing accomplished for the Jewish population was that a week 
before the opening of this bakery other bakers reduced the price to 8 cents 
a pound. 

Among the 11 Directors elected to manage the affairs of the Cooperative 
there was not a single baker or one who knew anything about baking bread; 
and the small shop on Harding street could not supply the demand for its bread. 

It became necessary to change managers and Louis Epstein was chosen. 
A new location was taken at 106 Water Street and the Cooperative now owned 
two shops and employed the majority of Jewish bakers in the city, but expenses 
were so tremendous that they had to be cut. 

At about that time Edward Dworkin was persuaded to become manager 
and he insisted that one bakery be built with two large ovens and that the 
shop on Harding street and the store on Harrison street be eliminated. After 
the Board of Directors had discussed the question at a meeting, lasting until 
2 A.M. and the next night until 1 A.M., they decided to grant the request of the 
manager. 

At this time one afternoon Dworkin called a special meeting of the Directors 
and explained to them that through some misunderstanding two carloads 


Interior of the new model bakery at Worcester. Not only is the place flooded with light; 
it is laid out according to the most hygienic standards in every respect. 


of flour were ordered and that they were at the freight station needing $6,500 
to take them off. There was a balance in the bank of about $500. Where was 
he going to get the rest of the money? There was no sense in returning one 
car of flour, for in the first place money could be saved on it, and in the second, 
the mill would never again sell if such return was made. 

The directors started to telephone their personal friends and one responded 
with $1,300, one with $1,000, a third with $1,200 and so on with $500 and 
S200 until by the next morning the $6,500 was deposited in the bank. That 
not only gave courage but it also established credit with the mill. 

A few months later they celebrated the opening of the new bakery shop 
at 106-108 Water street. It was the cleanest and most modern Jewish bakery 
in the city. Things ran smoothly for a while, but the other bakers realized 
that their money-making days were over. They sold bread at 7 cents a pound. 
The Cooperative could not do it, lost some trade and profits were very small. 
Every once in a while it became necessary to borrow money to meet urgent 
bills, and it became more convenient to buy flour from local dealers in 50 
barrels at a time. The profits shrunk still more and at the end of the year 
the directors were ashamed to tell the shareholders the facts of the situation. 

Then manager Edward Dworkin died. It was a blow, for the cooperators 
loved him as a friend of sterling character. 

Samuel Soloway then became manager of the Bakery. He paid up every 
bill with personal funds and with money borrowed started to buy the way 
a business like this had to buy and at the end of the first year the results 
were somewhat different. In the years that Soloway had charge of the bakery, 
regardless of the fact that the wages paid to workers almost doubled, he 
managed to achieve a substantial profit. 

Soloway resigned his position and Louis Widoff, a worker in the shop 
and always an ardent supporter of the "Cooperative" became, and is now, 
manager. Under his guidance the bakery is progressing in the right direction. 

The new quarters have three large, modern ovens and all new machinery. 
The store is provided with cases for the bread, rolls and cakes where no dust 
can reach them. The walls of the bakery and store are built of white tile. 
It is considered one of the best looking bakeries in New England. 

During the 10 years the Directors have helped every worthy cause, espe 
cially the Jewish Home for Aged and Orphans, which receives about $1,000 

year. 


 ••I' 


24 


COOPERATION 


COOPERATION 


25 


The Cooperative Bakery has saved the Jewish population in Worcester 
thousands of dollars- during these 10 years (the difference between what they 
paid for bread and what they would have paid if the Cooperative Bakery 
did not exist) and with the new facilities will be able to give the people of 
Worcester clean and healthy bread, rolls, chale and cakes at prices ever 
reasonable. 

On Sunday, May 27th, the Tenth Anniversary of the Workmen's Circle 
Cooperative bakery was observed with a mass meeting in Mechanics Hall 
with more than 1000 people to listen to an excellent musical entertainment 
and speaking. Meanwhile crowds of people had been inspecting the new bakery 
and store Saturday afternoon and evening and all day Sunday. 

This bakery enjoys the special good fortune of being able to do half of 
its business directly from its own retail store. Thus the heavy expenses of 
truck delivery are in a large part eliminated. There are twelve full-time 
and four part-time employees. The membership is approximately 200. 

Following is the story of the past five years' sales and gains: 


1923 

1924 

1925 

1926 

1927 


Gross Sales 
$75,249 
64,369 
79,257 
84,141 
78,806 


Net Gain 
Gain $3,229 
Loss 1,239 
Gain 962 
Gain 3,211 
Gain 2,530 


Share capital paid in amounted to $1,920 at the beginning of 1928, and 
reserve fund to $11,586. There were $8,500 invested in credit union shares 
or on deposit in savings accounts. Auditor's reports for the past five years 
show no record of any bills payable. 

A CHALLENGE 


... 


THE WORKERS COOPERATIVE UNION OF LAWRENCE, MASS., claims to have the 
neatest <md most beautiful little delivery truck of any in the country. The Editor of, 
COOPERATION has to admit Tie Ms not yet found a tetter one. Still it may exist. There 
fore the cooperators of Lawrence challenge their fellow cooperators in other parts of the 
country to show what they have to compare with this bakery truck. And if there are not 
delivery rigs equally attractive, why not? Cooperation stands for beauty as well as economy- 
The Editor passes this challenge along and invites pictures from those who dare compete. 


Editorial 


INTRODUCING THE NEW EDITORS 

With this issue of COOPERATION we 
welcome the following contributing edi 
tors all of them now serving on the 
board of directors of The League or 
elected to so serve next year: 

V. S. Alanne, Executive Secretary, 
Northern States Cooperative League. 

Otto Endres, President, Utica Co 
operative Society, Utica, New York. 

Albert S. Goss, Master, Washington 
State Grange, Seattle, Washington. 

L. S. Herron, Editor, Nebraska Union 
Farmer, Omaha, Nebraska. 

George L. Kennedy, President, Cen 
tral States Cooperative League, 
Villa Grove, Illinois. 

H. V. Nurmi, Chief Accountant for 
Cooperative Central Exchange, Su 
perior, Wisconsin. 

Eskel Bonn, Manager, Cooperative 
Central Exchange, Superior, Wis 
consin. 

Matt Tenhunen, Lecturer and Writer 
for Cooperative Central Exchange, 
Superior, Wisconsin. 

James P. Warbasse, President, The 
Cooperative League, New York City. 

A. W. Warinner, Secretary, Central 
States Cooperative League, Bloom- 
ington, Illinois. 


The national organ of The League 
should of course have the editorial serv 
ices of such men as these. The three who 
are officers of district leagues are at the 
very forefront of the campaign to create 
a strong and lasting consumers coopera 
tive movement in the United States, and 
we need to hear from them often. The 
three others who speak in behalf of the 
Cooperative Central Exchange and its 
affiliated stores in Minnesota, Wisconsin 
and Michigan, are listed among the 
ablest executives of that wholesale insti 


tution; and as the Central Exchange 
movement is absolutely the most ad 
vanced that we yet have on this con 
tinent, we have in Directors Nurmi, 
Ronn and Tenhunen representatives of 
the best of cooperative experience (even 
though we have differed with them 
times out of number on matters of 
theory, and doubtless shall continue to 
do so!) Dr. Warbasse was for ten years 
editor-in-chief of this journal and for 
the past six years has been the American 
representative on the Central Committee 
of the International Cooperative Alli 
ance. Messrs. Goss and Herron, though 
they may not be recognized at their true 
value by the preponderant conservative 
or reactionary element in the farmers* 
marketing movement of America, are 
nevertheless the type of aggressive agri 
cultural leaders who put their every 
energy into the building of a coopera 
tive economic order which shall truly 
supplant the present profit system; and 
a decade hence they will get from the 
hundreds of thousands of farmers the 
recognition that now goes to the officials 
who are engaging their efforts merely in 
grafting the cooperative marketing 
movement on to the capitalist order of 
things. Mr. Endres was President of 
the Eastern States League from the date 
of its organization in 1925 until the sum 
mer of 1928, nursing it through the dan 
gerous periods of infancy. 

In terms of European thought, these 
men may look like mere babes-in-arms 
so far as experience in cooperation is 
concerned. But we are not dealing in 
European thought nor working with 
European conditions. They speak for 
the struggling young movement of the 
United States of America. May they 
speak well and often in the pages of! 
COOPERATION. 


 26 


COOPERATION 


COOPERATION 


27 


THE COOPERATIVE, THE CHAIN STORE, AND 
THE ANSWER 

By ALBERT S. Goss 


There is nothing new in the chain 
store idea, but there is something de 
cidedly new in its application. Almost 
over night there has been developed in 
America a system of merchandising with 
a volume of business, rimning into 
hundreds of millions of dollars per year. 
This has been made possible largely 
through centralized buying, and by do 
ing business for cash. Cooperatives 
should have been following this system 
for years (as was originally intended), 
but they have extended credit too liber 
ally, and, with additional delivery costs, 
selling prices have been forced higher 
and buying ability limited to wholesalers 
willing to "carry" the account. . This 
naturally resulted in higher costs of 
merchandise, thereby sending the care 
ful cash buyer here and there for so- 
called specials. Result—increased credit 
sales and decreased cash sales. The 
Chain Store has grown by leaps and 
bounds, while the progress of the co 
operative has been slow, and in many 
instances has suffered a set back by 
reason of chain store competition. 

Two questions naturally present them 
selves: Wherein does the difference 
lie, and can the cooperative enjoy the 
advantages of the chain store and meet 
its competition! 

The answer to the first question is 
found in a study of American coopera 
tives which reveals the fact that they 
do not actually' cooperate with each 
other in buying. We have visioned the 
day when we would be able to pool a 
sufficient volume of business either to 
absorb the entire output of a line of 
factories, or to own the factories; and 
this possibility is absolutely sound. 

The writer has had the opportunity 
to be intimately familiar with a cereal 
product over most of a period of thirty 
years, and has watched the changing 
methods of distribution with keen inter 
est. Thirty years ago the manufacturers 
used to figure roughly that it cost 10 
per cent of the cost of the raw materials 


to manufacture the product, and 10 per 
cent to sell the product, which was all 
handled through the jobbing trade 
With the advent of high powered adver 
tising and salesmanship, the competition 
became keener and keener until fifteen 
years ago the selling costs had mounted 
to 60 per cent while the manufacturing 
costs had actually declined. Today the 
selling costs approach 100 per cent with 
the manufacturing costs a trifle lower 
Pacing such a situation, is it any wonder 
that when a chain store manager comes 
along with a contract taking the entire 
output of the cereal factory, that the 
manufacturer welcomes him with open 
arms and confines his energies to manu 
facturing problems, being content with 
a modest profit, and leaves the selling 
problems to one who has been able to 
eliminate most of the costs which inex 
orably piled up on the manufacturer. 

This is what the American coopera 
tive store set out to do, but how have we 
done it? A survey of one of the co 
operative "chains" recently made, 
showed that less than 16 per cent of the 
goods sold were bought through their 
own cooperative wholesale organization, 
where approximately 65 per cent could 
have been bought through that organiza 
tion as cheap, or cheaper, than the prices 
actually paid. Other chains have fared 
even worse, so that nowhere in America 
have the cooperatives placed themselves 
in a position to get their merchandise 
at figures as low as anyone of a dozen 
commercial chains. 

A survey of another cooperative chain 
has shown a high percentage of failures 
over 50 per cent of which are due to 
the unwise extension of credit. Efforts 
to establish the stores on a cash basis 
brought the universal objection that the 
extension of credit was the only way 
to meet chain store competition. 

If the chain store is to get all the 
cash business (and if prices are materi 
ally lower, those deserving credit will 
get the money and pay cash) and the 


operative store has to content itself 
C/th the leavings, the sooner the cooper- 
^t've movement quits, the better, because 
failure is inevitable. 

However, there is no such necessity. 
Tn fact, the cooperative store has a 
marked advantage in the matter of cash 
and credits, if we but organize properly 
to take care of it. 

What has actually happened is very 
simple. Some gentlemen, with both 
money and brains (how frequently they 
are found together), have caught the 
vision of the cooperative commonwealth 
and have set about establishing a 
privately owned system of merchandis- 
i jng in its place. They sensed the un 
economic spread in costs of distribution, 
and set up a volume of business able to 
cut out a lot of these costs. Then, to 
sell these goods, they employed sales 
men, and paid them for the results 
obtained. These men were not allowed 
to spend their thought and energy in 
buying. Their job was to sell goods. 
Expert buyers were employed to devote 
their full energy to buying right. Goods 
were not bought to suit the whim of 
some customer, or local manager. This 
would never lead to owning factories 
and no such "monkey business" was 
tolerated for one moment. 

Quantity buying, plus expert sales 
manship, for cash, was the prescription, 
and when it was not varied from, success 
was inevitable. The secret lay almost 
entirely in concentrating the buying in 
one spot. Any other course is bound 
to suffer under an unsurmountable 
handicap. 

The chain stores have been making 
wonderful progress, and have been mak 
ing money; they have also made their 
share of mistakes, and their future is 
not all rosy. They have built their busi 
ness upon the cut price, and their success 
has brought a flock of competitive 
chains, who have divided the business 
so that the cost of operation has been 
steadily rising. In their zeal to cut 
prices, they have been none too careful 
about quality or full measure, until 
today one goes into a chain store fully 
expecting to keep his eyes open, lest he 
get the worst of it. They have not built 
the good will in confidence of the buying 


public. They are fast gaining the ill 
will of the farmers by making leaders 
of butter, eggs or other farm produce, 
thus breaking the markets to less than 
the cost of production. 

One successful private store has a 
chain store on either side, and the 
manager informed the writer that his 
sales had increased when the first chain 
store moved in, and increased again 
when the second chain store started up. 
Their advertising brought the people, 
and by displaying better vegetables, and 
other wares, he got the trade of the dis 
criminating buyers. Herein lies one of 
the answers. 

This brings us to the answer to our 
second question—Can the cooperative 
store meet the competition? 

I would say that there were four 
answers to the chain store available to 
the cooperatives. Or, to be more exact, 
the answer to the chain stores is one 
program with four distinct features. 

First,—There must be pool buying. 
Cooperative stores must unite at least 
in this. Failure is inevitable without it. 
It may be delayed by stressing the other 
three phases of the corrective program, 
but sooner or later some store which 
puts into effect the full program will 
put the lone buying cooperative out of 
business. The cooperative, which learns 
from the chain and puts the most capa 
ble man available in full charge of the 
buying, thus releasing the manager to 
devote his full time to selling, is on the 
high road to success. This buying de 
partment must be under the control of 
the member stores, who will establish 
this policy, but the buyer's authority to 
complete transactions must be undis 
puted as it is in the successful chain. 

Not only will such a move be reflected 
soon in lower prices, but also in greater 
sales, for the manager can then devote 
his entire attention to his customers, and 
toward getting new ones. 

Second,—Stressing good quality and 
full measure. The cooperative is par 
ticularly fortunate in this respect, for 
as it spreads its educational work, 
people will come to realize that, since 
none of the employees share in the 
profits, there is no incentive to sell poor 
merchandise, or give short weights. Such 


 28 


COOPERATION 


COOPERATION 


29 


a reputation spells solidity and per 
manence. 

Third,—Better service. Personal ser 
vice does not follow the cut price plait 
far. The family atmosphere of a true 
cooperative store cannot be surpassed 
.as a holder of trade. Deliveries are 
sound, if prices are based to cover them. 
A large portion of the buying public 
are more concerned with dependable 
goods and good service than with cut 
prices. 

Fourth,—A wise credit policy. The 
store business is merchandising. The 
extension of credit is a different business 
requiring different treatment. A cash 
trade is most desirable from every stand 
point, but there are usually many de 
sirable customers who prefer credit, who 
can get credit, and who are entitled to 
credit. If credit can be confined to such 
and handled on a sound basis, it is 
desirable business. The problem is to 
select this desirable credit customer. 

The cooperative store has available the 
best possible facilities for making such a 
selection. These lie in two directions. 
First in the credit union type of credit 
arrangement, in which the members (and 
possibly non-member customers) organ 
ize their own credit association with 
loan committees who pass on applications 
for credit. With this form go certain 
limited mutual guarantees, and the co 
operative store extends credit only to 
those whose accounts are guaranteed by 
the credit association. This is the most 
satisfactory form of handling credit, 
for not only are losses guarded against, 
but also the store finds the guarantee 
by the credit association, makes of its 
list of accounts receivable good bank 
able security so that, in effect, it is the 
same as on cash business. 

The second form of credit is to have 
all applications for credit approved, 
with definite limits, by a credit commit 
tee made up of members who are well 
acquainted with the customers, or who 
make it their business to know and to 
get security where desirable. 

It is obvious that the chain store, deal 
ing with cut prices and a transient 
trade, cannot establish such intimate 
credit relations with its customers as a 
cooperative store can with its own mem 


bers or their neighbors. So here the co 
operative finds another distinct advan 
tage which few are using. 

The chain store has come, and come 
to stay. It will always handle a certain 
class of trade, and get its share of the 
business. It is high time that the co 
operative store boards of directors recog 
nize this, and prepare to meet the com 
petition by providing equal values for 
their customers through effective pool 
buying, and by providing such types of 
service as the cooperatives furnish par- 
ticularly well, and better than the chain 
stores, In this, they are doing- their 
community a real service by keeping the 
money at home. They should let this 
fact be known to all. 

It is high time that we stop crying 
about the unwarranted competition of 
the chain store and criticising our 
members for lack of loyalty. It is rather 
up to us to practice a little more practi 
cal loyalty to the basic principles of the 
cooperative movement, and to modernize 
it and keep it abreast of the business 
developments of the day. Our principles 
are sound. If whole-heartedly carried 
into effect, they will provide the remedy 
for the economic inequalities and injus 
tice which prevail today. There is just 
as much reason for a religious loyalty 
to our principles as ever, but there is 
need for more aggressive and construc 
tive business practices. Cooperative 
distribution is a business, not a religion: 
and sound, strict and efficient business 
methods must be applied in order to 
meet present day competition. Here lies 
the test. Are we big enough to meet the 
new situation? 


KEEPING PRINCIPLES 
FOREMOST 

If cooperators are going to imitate the 
private traders, they might have spared 
themselves the trouble of establishing 
Cooperative Societies, which are not com 
mercial enterprises merely to sell goods and 
least of all to the general public. To 
violate this essential principle would be 
like cutting off the branch on which they 
are sitting. 

Heirrtcli Lorenz, President 
German C. W. S. 


WH0 WILL TEACH FARMERS HOW 
TO THINK? 

"Our first and foremost job is to help 
tjje farmer think in economic terms. 
• . Fortunately, the economic ap 
proach is gradually taking its rightful 
place alongside the purely production 
approach in the minds of American 
farmers." So says the chief of the 
Bureau of Agricultural Economics of 
the U. S. Department of Agriculture in 
speaking to the Convention of the Asso 
ciation of Land-Grant Colleges and Uni 
versities. 

So far, so good. But what kind of eco 
nomics? The talk seemed to be mainly 
about the forces of Supply and Demand 
—mysterious natural phenomena which, 
like the wind and the rain and the win 
ter's cold, come to bless or curse the 
farmers, and over which these harassed 
people have no possible control. 

Supply and Demand are very much 
the playthings of powerful economic in 
terests these days, though it may not 
be wise for employees of Mr. Coolidge's 
government to say so. The big packers. 


the cotton brokers, the wheat pit, the 
produce exchanges, the tens of thousands 
of middlemen across the country; these 
are the forces which stimulate or retard, 
demand a little at this point, a little 
more somewhere else—who contract or 
expand slightly in one or another market 
the supply available to the consumer— 
always in the interest of bigger and bet 
ter profits for themselves. With the de 
velopment of cooperative marketing and 
distribution these gentlemen do not 
cause quite as much havoc as they once 
did, but they are still powers to be 
reckoned with. 

Our farmers should not expect job 
holders at Washington to tell all they 
know about Supply and Demand. But 
neither should they swallow too easily 
all the learned instruction which comes 
from Washington. A government which 
is still controlled by big business will not 
teach the farmers how to bite the hand 
which feeds the instructors. The only 
safe education for our agricultural 
classes is that dispensed by the farmers' 
own organizations and the teachers who 
are controlled by those organizations. 

C. L. 


News and Comment 


11,400 FARMERS COOPERATIVE 
ASSOCIATIONS 

Those are the figures for 1927 given 
out by the U. S. Department of Agri 
culture. Total business in that year was 
$2,300,000,000 and in 1928 was still 
larger. Over 2,000,000 farmers are be 
lieved to be members of the associations 
for marketing or purchasing of farm 
produce or supplies. 

The transactions of the grain market 
ing associations reached the highest 
figure—$680,000,000. Those handling 
dairy products came second with $620,- 
000,000, and the livestock associations 
third with $320,000,000. 

There is more cooperation among 
farmers' cooperatives than in the past. 
Forty-four of the largest dairy associa 
tions are united in the National Milk 
Producers Federation; and several of 
the big wool associations have formed the 
National Wool Marketing council. Thir 


teen of the livestock terminal agencies 
have united to form the National Live 
stock Producers Association, the com 
bined business of 25 of these agencies 
being in excess of $300,000,000. 


The 

MONTHLY PROPAGANDA 
POSTER SERVICE 

issued by the 

CENTRAL STATES COOPERATIVE LEAGUE 
enables you to utilize the display 
space around the cooperative's 
premises for the most effective sort 
of cooperative propaganda, at a 
very moderate cost. 

For samples, prices and information, 
address: 

CENTRAL STATES COOPERATIVE LEAGUE 
1303 N. Park St., Bloomington, 111. 


 30 


COOPERATION 


COOPERATION 


31 


GAINS AT BROCKTON 

The Hebrew Cooperative Bakery at 
Brockton, Mass., is finding its aggressive 
policy of going after new consumer busi 
ness a paying policy. During the sum 
mer this bakery supplied three camps 
with bread, the Workmen's Circle Camp 
at Framingham, the United Workers' 
Cooperative Camp at Franklin, and the 
Y.M.H.A. Camp at Middleboro. Though 
this meant some long and expensive 
hauls with the truck, yet it raised the 
volume of bread handled so that over 
head cost of production was materially 
reduced. The Hebrew Bakery has also 
been selling to the United Cooperative 
Society of Quincy for almost a year, and 
recently has started a bread route among 
the consumers of Quincy, thanks to the 
assistance given by the Quincy Society. 

DEVELOPMENTS IN THE CHAIN 
STORE FIELD 

The chain stores in the general mer 
chandise field (excluding the straight 
grocery chains) now number 12,000, 
operated by 1,100 separate corporations. 
In the drug line the big fight at present 
is going on between L. K. Liggett and 


Walgreen. The latter corporation still 
builds its local stores around the 
tered pharmacist and pays a 
salary of $50 per week to such men. 
hundred new units have been added to 
the various chain drug company Opera- 
tions during the past ten months. The 
McCrory stores corporation has recently 
acquired ten new units. Schulte and 
United Cigars have combined and are 
going into the grocery game with 20 
stores opening on the first of Janu 
ary. The grocery chains have opened 
3.000 new stores during the past year. 

One of the new developments in the 
grocery line is the number of non-gro 
cery items which are being taken on by 
the chain stores. A list of toilet articles 
carried by the Piggly Wiggly grocery 
stores, with a statement of the gross 
mark-up which they are credited with 
making on these items, follows: 


Article 
Listerine, 3 oz......... 

Listerine Tooth Paste.. 
Pyrodento Tooth Paste. 
Ipana Tooth Paste. 


Mark-up 
% of Cost 

23% 

35 

29 

37 


Mulsified Cocoanut Oil Shampoo.. 13 

lodent Tooth Paste No. 1........ 44 

lodent Tooth Paste No. 2........ 44 

Pebecco Tooth Paste.............. 20 

Hinds Honey & Almond.......... 25 

Pepsodent ..................... 21 

Dr. Davis Tooth Brush No. 1...... 40 

Dr. Davis Tooth Brush No. 2...... 40 


My Li vest News Item of the Month 


BANNER YEAR AT WAUKEGAN 

Total sales for the year 1928 amount 
ing to $679,305.34, or an increase over 
1927 that fails only $248.88 of $100,- 
000.00, or 17.21 per cent is the proud 
record of the Cooperative Trading Com 
pany, of Waukegan, Illinois, for what 
will undoubtedly prove to be the banner 
year, so far, in the history of the de 
velopment of this fast-growing society 
which can now boast of being one of the 
largest consumers' cooperatives in the 
country. 

The quota set for the year was $650,- 


000.00. This has been exceeded by 
nearly $30,000.00 and no doubt a much 
stiffer one will be set for 1929. That 
it too will be reached and exceeded, no 
one who has intimate knowledge of the 
spirit and militancy of this organization 
will doubt. 

While it is too early yet to make an 
accurate estimate of the showing in 
gross and net savings for the year, it 
is safe to predict that they will be sub 
stantial and satisfactory, as has been 
the case for a number of years past. 

A. W. W. 


A LEADER AMONG NEBRASKA 
COOPERATIVES 

ipen consecutive patronage dividends, 
besides 8 per cent interest on shares 
very year, is the record of the Farmers 
Union cooperative store of Neligh, Neb., 
in the 10 years since it opened for 
business on November 1, 1918. The 
patronage dividend on purchases has 
never been less than 4 per cent, and in 
several years ran up to 6 per cent and 
7 per cent. 

This is a farmers' store, and operates 
a cream station in which cream is gath 
ered and shipped to a creamery. The 
patronage dividend on cream has never 
been less than 2 cents per pound of 
butterfat. For the latest fiscal year, the 
association has made a patronage divi 
dend of 5 per cent on purchases and 3 


cents a pound on butterfat handled in 
the cream department. 

Sales merchandise in the past year 
totaled $129,922.60, with an operating 
cost of 14.2 per cent. The association 
had no bills payable at the close of the 
year, and its bills receivable were only 
$1,136.35. Its share capital is $25,630, 
all but a little more than $5,000 of which 
has been accumulated from patronage 
dividends retained or left in for shares. 
It now has a surplus fund of $5,126, 
and a reserve for depreciation of $4,214. 

A serious fault of this association is 
that it is built too largely around the 
manager, A. E. Graybiel, an experienced 
merchant, and has not given sufficient 
attention to the development of coopera 
tive morale. As a consequence, it is 
threatened with a serious slump in busi 
ness due to the invasion of the com 
munity by chain stores. 

L. S. H. 


Northern States Cooperative League 

TOURING COOPERATIVE STORES IN NORTH DAKOTA 

By V. S. ALANNK 
Executive Secretary, Northern States Cooperative League 


North Dakota is "unorganized territory" 
in the Consumers' Cooperative Movement 
of the United States. It does not properly 
belong under the jurisdiction of the North 
ern States' Cooperative League. But re 
cently the Secretary had an opportunity to 
do a little cooperative organization work in 
central North Dakota and at the same time 
pay a visit to some of the cooperative stores 
operating in the state. It may interest 
cooperators in other parts of the United 
States to know what is going on in the field 
of consumers' cooperation in North Dakota. 

The Northern States' Coop. League office 
in Minneapolis has had some correspond 
ence with or has known of the existence 
of about a dozen cooperative stores in North 
Dakota. During his organization trip, the 
Secretary learned of the existence of five 
more cooperative stores (those at James 
town, Turtle Lake, Garrison, Powers Lake 
and Woodwoith) and actually visited three 
°i these. 


Many interesting features were disclosed 
in regard to these stores. It may be said 
that with very few exceptions the Consum 
ers' Cooperative Movement has not yet be 
come securely rooted in North Dakota. The 
movement is still in its infancy and a great 
deal of propaganda and educational work 
must be carried on before it can expect to 
be well established in the state and before 
further failures can be avoided. 

However, the Non-partisan League 
Movement as well as the recent organiza 
tion work carried on in the state of North 
Dakota by the Farmers' Union have helped 
or are now helping to create a favorable 
sentiment particularly among the farming 
population of North Dakota toward co 
operative principles and the Cooperative 
Movement in general, and, although in a 
smaller degree, toward consumers' coopera 
tion also. 


1 1 


 II 


32 


COOPERATION 


COOPERATION 


33 


Minot Cooperative Company 

The only cooperative store society in 
North Dakota now affiliated with the 
national movement is the Minot Coopera 
tive Company, located in the northwestern 
part of the state. This society was organ 
ized in 1920 by railroad employees in the 
town and commenced business in 1921. 
They did not have luck with their first man 
ager but the second manager, Mr. Hatha 
way, proved to be a conscientious and able 
man, and under his management the store 
began to prosper. At the time of the 
untimely and unexpected death of Mr. 
Hathaway (in August, 1927) the Minot 
Cooperative Company had, fortunately, 
developed into a real organization; that is, 
it had schooled a few directors who actually 
knew their business and under such leader 
ship even the loss of a good manager could 
not disturb the steady progress of the 
organization. The board chose one of the 

•clerks, Mr. J. W. Howe, to manage the 
affairs of the store and under him the store 
has continued to prosper. Of course, there 
have been temporary set-backs, such as a 
slight decrease in sales for 1927, as com 
pared with 1926—due to the invasion of 
the Red Owl chain store system into Minot, 
and possibly other factors—but the man 
agement is convinced that such temporary 
set-backs will be readily overcome and that 
steady progress can be continued. 

As far as I have been able to learn, the 
Minot Cooperative Company is the only 

•consumers' cooperative in North Dakota 
that operates two stores. Considering the 
fact that they handle only groceries, they 
have built up a respectable volume of busi 
ness. Their sales in 1927 amounted to 
$147,567.31, from which there was a net 
gain of $7,288.44 for the year. The branch 
store is located in the northwestern part of 
the town. 

Besides the manager, I had the pleasure 
of meeting the secretary and the vice presi 
dent of the organization. The secretary, 
Mr. Chas. Stevens, is a veteran fighter for 
workers' rights and a seasoned cooperator. 
He has been blacklisted on account of his 
activities in the Shopmen's strike in 1921 
and has been out of a job for many months. 
He, like so many other men of principles, 
has been called to sacrifice a great deal for 
his ideals, but that seems only to have 
stiffened his backbone and increased his 
determination to work for the emancipation 
of the working man and woman. Besides 
his activities in behalf of the cooperative 
store, I found Mr. Stevens also busy in 

•organizing a cooperative oil association, the 


membership of which consists largely Of 
farmers of the vicinity of Minot. This 
cooperative oil association, which will be 
controlled by the Farmers' Union of North 
Dakota, expects to open business the first 
of the year. 

In my long and highly interesting dis 
cussions with Mr. Stevens I found that he 
and the other progressive directors of the 
Minot Cooperative Company were facing 
this serious problem within their organize 
tion: Some of the more selfish of their 
members have long kept an eye on the nice 
little accumulation of surplus which has 
been shown on the books of the company 
within the last few years. These members 
were instrumental in having a resolution 
passed at the annual meeting a couple of 
years ago to the effect that the shares of 
the company were not any more for sale 
The passing of this resolution, in spite of 
the protests of the progressive directors 
was the first serious step away from the 
cooperative basis on which the store organi 
zation was supposed to be built. The next 
move of these selfish members was to pro 
pose that the surplus-reserve or most of it 
be divided back to the members in form 
of shares. As there are only 64 sharehold 
ing members in the company but nearly 
600 more or less regular patrons, the injus 
tice of such a division, from a cooperative 
viewpoint, is obvious. But it is a still more 
serious breach against the cooperative prin 
ciples to prevent these customers from be 
coming shareholding members of the or 
ganization. To be a true cooperative, the 
Minot Cooperative Company should not 
only hold its membership open at all times 
for all bona fide consumers who wish to 
join it, but it should do everything in its 
power to encourage these consumers and 
particularly those who trade at the store, 
to become full-fledged members of the 
organization. Let us hope that the pro 
gressive element in the membership of the 
Minot Cooperative Company will prevail 
on this question and that all barriers pre 
venting its customers from becoming mem 
bers of the organization will be speedily 
removed. 

The progressive directors of the Minot 
Cooperative Company are planning to erect 
their own building for the main store M 
the near future. That the organization is 
financially able to do this is shown by the 
fact that their permanent reserve and undi 
vided profit accumulations amount to more 
than $10,000. The present main store is 
located in the Sons of Norway building ana 
is one of the most attractive cooperative 
stores the writer has seen in this country. 


As the Minot Cooperative Company handles 
only groceries there is a good deal of room 
for further expansion. 

•naiiroad Cooperative Stores Company of 
Jamestown 

Another "bright spot" in the field of 
consumers' cooperation in North Dakota 
is the Railroad Cooperative Stores Com 
pany °f Jamestown. Organized in May, 
1918, this cooperative has gradually become 
one of the leading stores in the town. Its 
sales in 1927 amounted to $232,234.64. The 
total assets of the company at the end of 
1927 were $51,096.61, being twice as much 
as the assets of the Minot Cooperative Com 
pany. The "Railroad Cooperative Store," 
as it is generally known in Jamestown, is 
a busy place. Besides the grocery depart 
ment it operates a well-equipped meat 
market. 

The Jamestown store is managed by Mr. 
Walter A. Anderson, who is a man with 
a cooperative vision. He warmly received 
the Secretary as an emissary of coopera 
tive groups farther east of whose work and 
achievements he knew little on account of 
the isolated position his store organization 
has so far held. Mr. Anderson said 
that he had become attached to Coopera 
tion in his early youth, having had an 
opportunity to watch the remarkable 
growth of a farmers' cooperative creamery 
at Barren, Wis., now one of the largest of 
its kind in the United States, and where his 
father served as one of the officers. Mr. 
Anderson readily admitted the need for the 
cooperative stores .getting together and 
developing their own educational and com 
mercial central organizations. 

The Railroad Cooperative Stores Com 
pany has 225 shareholding members, all of 
which are railroad employees. The by-laws 
of the company limit its membership exclu 
sively to this class of people. It is to be 
hoped that in the near future they change 
these by-laws so as to admit all bona fide 
consumers in the locality, as it is obviously 
against the true spirit of Cooperation to 
limit the membership to one class of con 
sumers only, particularly as in this case a 
large percentage of those trading at the 
store are not railroad people. 

Cooperative Cash Mercantile Company of 
Turtle Lake 

Another interesting cooperative store I 
visited is the Cooperative Cash Mercantile 
Company of Turtle Lake, located in the 


west-central portion of the state. This 
store is also one of the largest in North 
Dakota. In 1925 its sales were $172,823.11 
but on account of unfavorable farming 
conditions, they dropped to $146,680.80 in 
1926 and were only slightly larger in 1927 
($149,046.06). The store has been operated 
since 1921 but the present organization was 
not incorporated until 1924. Under the 
guidance of the present manager, Mr. L. J. 
Vonderheide, the store organization which 
was badly in a "hole" seven years ago, has 
quickly recuperated and accumulated a 
reserve of undivided profits amounting to 
$21,000. 

The Turtle Lake store is a successor 
to one of the so-called "Townley stores," 
organized by the Non-partisan League lead 
ers in 1920-21. According to the story 
prevalent, Townley or his associates raised 
something like $10,000 in the locality for 
the purpose of operating a cooperative store 
for the benefit of the farmers who gave 
individual notes which were turned into 
cash, possibly at the local bank; but only 
a small amount, about .$200, of this cash 
was ever used at or for the store. Where 
the money went, nobody seemed to know 
definitely. To pacify the local farmers, 
another organization was formed which put 
up a store and took over the farmers' notes. 
About $6,000 of these notes has since been 
paid out of the earnings of the store, 
besides the interest. 

I found Manager Vonderheide in a mood 
of planning to quit the store. He seemed 
to feel that his work at the store was not 
sufficiently appreciated, but still it devel 
oped during our conversation that he is 
even at liberty to fix his own salary. The 
board does not meet at all during the year; 
everything is left to the manager. No co 
operative educational work has ever been 
attempted in the locality. No wonder, as 
the manager did not seem to realize any 
need for such work. He is planning to go 
into business for himself and when I 
inquired into the reasons why he expects to 
leave, after drudging so many years to build 
up a prosperous business, he told me that 
he simply wanted to show the sceptics that 
"it can be done" but that he now wants to 
get "all the profits he can make." 

An interesting feature in the business of 
the Turtle Lake store is that they call them 
selves "Cooperative Cash Mercantile Com 
pany" but still their last annual statement 
shows accounts receivable to the amount 
of $9,505.02. 

(To be continued) 


 Ill 


34 


COOPERATION 


COOPERATION 


35 


Cooperation Abroad 


At its last meeting the Executive of 
the International Cooperative Alliance 
appropriated $2,400 to the Cooperative 
Union of Canada to assist the latter 
organization in its propaganda work. 
The Canadian Union, now twenty years 
old, has never had sufficient funds to 
carry its legitimate overhead expenses, 
let alone any effective and large scale 
educational campaigns. This is the first 
outright grant of this kind that has ever 
been made by the I. C. A. to a national 
union. ———— 

Canadian cooperators are building 
their own wholesale societies. Last year 
the Manitoba Cooperative Wholesale got 
under way. With the beginning of 1929 
similar wholesales opened for business 
in both Alberta and Saskatchewan. 
A. P. Moan, formerly