The source of this uncorrected OCR text may be viewed in the DjVu format at: http://fax.libs.uga.edu/HD2951xC776/co31 or http://purl.galileo.usg.edu/ugafax/HD2951xC776/co31 COOPERATION OFFICIAL ORGAN OF The Cooperative League o£ U. S. A. VOLUME XVII January December 1931 Published by the Cooperative League of U. S. A. 167 West 12th Street, New York City INDEX A PAGE Alanne, V. S ........................................................ 38, 110, 150, 188, 234 Alforeeht, A. E. ............................. ........................................ 118 Amalgamated Cooperative Housing Ass'n ........................................... 214 Amalgamated Credit Union ...................................................... 63, 93 Amalgamated Dwellings ......................................................... 2,2, 93 Aimeringer, Oscar .............................................................. 169, 217 Anniversary Greetings to Cooperation ...... .......................................... 2 Antoni, G. ........................................................................... 31 Austrian Cooperative Movement, History of the .................................... 217 Balbson's Statistical Organization ................................................... 226 Back to 'the Jungle ................................................................. 167 Baker, J. W. ..................................-..............'.................. 77, 191 Bakeries ...................................................................... 122, 161 Banking ............................................................................ 225 Banks-....................................................................... 9 117, 167 Bairnes, Alfred, M. P. .........................................................'...... 13 Barou, N. ........................................................................... 117 Bar-tlefct, B. W. ...................................................................... 216 Bergengiren, B. P.. .......................... ........................................ 104 Book Reviews ............................................. 34, 55, 75, 115, 136, 155, 216 Bowiman, L. E. ................................................................. 30, 205 Brooks, John Graham ............................................................... 3 Brookwcod Labor College .......................................................... 118 Burial Associations ............................................................ 149, 190 Business, Surveying ................................................................ 230 Can America be Prosperous? ........................................................ 42 Canada, Cooperation in ................................................ 32, 129, 171 232 Capitalism Defaults, When ................ ........................................' 28 Capitalism & Socialism, The new .................................................. ue Caltiholic Opinion .................................................................... 77 Central Cooperative Wholesale ................................... 48, 50, 55, 56, 108, 194 Central States Cooperative League .......................................... 93, 130, 171 Chambers of Commerce ............................................................ 113 Chase, Stuart ........................................................... 42, 82, 118, 137 China, Cooperation in ..................... ......................................... 36 Christian Socialists ................................................................. 53 Civilization .......................................................................... 23 Closser, W. H. ...................................................................... 5 CJoquet Cooperative Society .............................................. HO, 194, 132 Olusa Service, Inc. ................................................... 8, 28, 56, 109, 238 College, Cooperative .................................24, 57, 64, 77, 117, 138, 186, 197, 229 Colonies, Communists and Cooperative .............................................. 33 Competition, Free ................................................................... 82 Constant Crisis, The ................................................................ 15 Consumers Cooperative Services ............................................ 63, 147, 222 Consumer, Credit & Productive Ooopera'tive Societies in 1929 ........................ 115 Consumers' or Workers' Control? .................................................... 72 Consumption of Canned Goods ...................................................... 75 Contest. Cooperative Ptrices Win ...................................................... 27 Oooley, Oscar .......................................................... 209, 218, 222,, 227 Cooperation A Way Out ............................................................. 162 Cooperative Builder, The ....................................................... 167, 233 Cooperative Month, October ............................................... 149, 166, 188 Cooperatives Prosper in Bad Year .................................................... 69 Cooperative Fire Insurance Cos. of Woodridge, N. Y. ................................ 229 Coopeerative Trading Association of Brooklyn ..................................... 90 Cooperative Trading Company, Waukegan, 111. .............................. 26, 63, 121 INDEX PAGE Cooperators' Buying Club of Minneapolis............................................ 112 Cart, E. G. .......................................................................... 197 Craig A. ......................................................................... 5, 58 Creameries ............................................................. 81, 91, 122 161 Credit ........................................................................ 56, 70, 128 Credit Unions ........................................ 9, 62, 89, 104, 106, 117, 135, 142, 157 Crisis, The Constant ................................................................. 15 Crystal Cooperative Cleaners, Inc. ................................................... 234 Cut Price Merchants, Meeting the .................................................... 87 D Daivis, Jerome ....................................................................... 228 Denmark, Cooperation in ................... .......................................... 12 Depression ........................................................................... 232 Depression, Can Cooperatives turn to Their Own Accounts ......................... 222 Depression, How Cooperatives Can Fight ithe......................................... 210 Depression Prepares for Extension of Cooperation .................................. 205 Dillonvale Resolution, In Answer to ............................................ 16, 78 Disarmament ....................................................................... 151 Disaster in Bay of Biscay ..................................-..•••••••••-.•••••••••• 152 Dividends Mean a High .Mortality Bate? Do High .................................... 189 E Eastern States Cooperative League ...................................... 30, 85, 93, 170 Economics ........................................................................... 231 Edlberg, Gideon ................................................................. 98, 117 Educational Work Needed ........................................................... 225 Educational Committees ................................................ 55, 88, 122, 167 Education Makes Loyalty .......................................................... 183 Elanto Co. of Nashwauk, Minn. ..................................................... 112 Electric Transmission ..........................................••••.••••••••••••••••• 8 Employiess Voluntarily Cut Wages .......... .......................................... 70 Endorsements ..............................................-.•••••••••••••••••••• 28, 49 England, Cooperation in ..................... 13, 32, 55, 71, 128, 161, 172, 192, 211, 226, 231 Every Credit Union is a Cooperative Society......................................... 104 Farband Cooperative Housing Association ....................................... 93, 101 Farmers ............................................................ 9, 25, 70, 75, 230, 233 Fawners & the Farm Board ..................................................... 9, 25, 70 Fawners' Cooperatives in United States .............................................. 75 Farmers Union ..................................................................... 233 Farming by Consumer Societies ..................................................... 54 Finland, A Nation of Cooperators ................................................... 136 Finland, Cooperation in .............................................................. 33 Finnish Workers Society, Minneapolis ............................................... 234 Fire Fighting in Place of Hog-tying ................................................. France, Cooperation in .................... ................................... 172, 212 Franklin Cooperative Creamery Association. .................................. 50, 81, 88 Franklin Cooperative Creamery Educational Committee .............................. 234 Franklin Credit Union ............................................................... 63 G Gallen, Walter ..............."...........................................••••••••••.. 91 Garden Apartments, Brooklyn ...................................................... 90 German Socialists ...........................................-.......•••-•-•-•••••••• 52 Germany, Cooperation in ..........................•..••••••••••••••••• 13, 129, 151, 231 Gide, Cttias. ......................................-.....--.----••••••--••••••-••• 33, 112. Government, Prices raised by ........................................•••••••••••••••• 29 H Halonen, George .............................................-...•••••-•••••••••••••• 24 Hamilton, Peter .................................-.•••••••••••••••••••••••••••••••••• 4 ) INDEX 1 PAGE Hansome, Harms ................................................................... 156 Harris, Emerson P ................................................................... 3 Hayes, A. J. ......................................................................... 225 Health Protection ................................................................... 214 Herron, L. S. ..................................................... 18, 103, 137, 162, 183 Hindus, Maurice .................................................................... 196 History of the Austrian Cooperative Movement ..................................... 217 Hospital, A Cooperative ............................................................. 203 Housing .............................................................. 22, 71, 72, 189, 237 Hull, I. H. ........................................................................... 224 Hyde, Win. A. ....................................................................... 178 India, Cooperation in ............................................................... 153 Indiana Farm Bureau Cooperative Association ...................................... 224 Institutes, Summer ............................................................ 133, 170 Insurance ..... ................................8, 28, 31, 56, 83, 83, 109, 126, 150, 178, 238 Insurance, Fire .............................................................. 89, 126, 229 Insurance, Life ..............................................••••••••••••••••••• 31, 150 International Cooperative Alliance ................................. 54, 92, 114, 151, 210 International Summer School, llth .............................................. 92, 172 International Wholesale ............................................................ 210 Internationales Handwoerterbuch des Genossenchaftswesens ......................... 116 Isihipeming Consumers Cooperative Association, Michigan ............................ 112 Italian Cooperative .............................................................. 67, 145 Italy, Cooperation in ............................................................... 192 Jacobson, G. W. ..................................................................... 186 Jainrfouoh des Zentralverbandes deutscher Konsuanvereine ........................ 76 Japan, Cooperation in ............................................................... 41 Jewish Bakeries, Conference of Managers of......................................... 93 Jugo-Slavia, Cooperation in ......................................................... 72 Jungle, Back to .the ................................................................. 167 K Kasch, August ...................................................................... 191 Keen, George ....................................................................... 2 Kiuru, Helvi ........................................................................ 230 Klein Julius ............................. J......................................... 230 Labor ............................................................................. 23, 73 Labor Banks in United States ....................................................... 9 Laidler, Harry .................................................................. 116, 157 Laski, J. J. ........................................................................... 153 Leadership is Essential .............................................................. 125 League Directors Meet ............................................................. 209 League Executive Meeting .......................................................... 97 League Gets Results Abroad ................................................... 149, 177 Lecturing, I go a ................................................................... 94 Legal Pihases of Cooperative Associations ............................................ 75 Legislation in various countries, Cooperative......................................... 2.17 Liebman, H. ...................................................................... 57, 138 Long, Cedric .............. 23, 55, 62, 68, 106, 115, 125, 145, 155, 166, 168, 182, 188, 196, 202 M McCarthy, C. .................................................................... 102, 133 Marketing Dairy Products, Cooperation in........................................... 216 Mass Consumption .................................................................. 134 Mass Cooperative Co., Michigan ................................................... 112 Mayer, C. H ....................................................................... 38 Memorial Fund ................................................................. 133, 209 Mercer, T. W. ...................................................................... 51 Midland Cooperative Oil Association ............................................ 87, 147 r ' • i, INDEX PAGE Mill, John Stuart ................................................................... 53 MitMbusc'her, Wm. ................................................................ 133 Money .............................................................................. 207 Moore, U. G. ...................................................................... 5, 17 Motion Pictures ..................................................................... 234 Mr. Fox & Mr. Foodie in Business .......... .....................................,..'. 76 Muron, Jos. F. ...................................................................... 73 Mutual Service and Cooperation .................................................... 37 N Nebraska Farmers Union ................................................. 25, 49, 64, 91 Nebraska Farmers Union State Exchange ........................... 26, 49, 102, 109, 147 Negley, Henry ...................................................................... 57 Negroes' Cooperative League, Young ................................... 127, 145, 169, 227 Negro's Salvation, The American .................................................... 144 New Era Life Association ....................................................... 31, 150 New York State Agricultural College Endorsement ................................... 28 Nicotri, G. .......................................................................... 31 Nilsson, Harry ...................................................................... ng Nccntlhern Farmers' Cooperative Society of Angora, Minn. ............................. 112 Northern States Cooperative League ............'. 11, 12, 31, 50, 110, 130, 150, 170, 193, 233 No Great Cause for Enthusiasm .....................'................................ 126 Nordby, H. I. ....................................................................... 88 Nugent, Rolf ........................................................................ 157 O f d Cooperatives ....................................... 87, 109, 133, 147, 148, 169, 224, 23.3 Our Cooperative House .............................................................. 93 Our Credit Union .................................................................. 63 Owen, Robert ...................................................................... 52 Panics are Inevitable, Wihy .......................................................... g Park Association, Northern Wisconsin, Cooperative .................................. 132 Parker, Florence .................................................................... 115 Patronage Refund, Value of ......................................................... 123 Peculiar Forms of Cooperatives ..................................................... 67 Perky, Scott ........................................................................ 3 Petarson, P. D. ...................................................................... 91 Point of View ..............................15, 34, 52, 72, 94, 113, 134, 153, 173, 194, 214, 235 Poland, Cop/peration in ........................................................ 32, 55, 91 Political History of a Cooperative ................................................... 55 Politics ............................................................. 44, 153, 2S6, 2,17, 234 Politics and Cooperation Mix, Do ..........................................'......... 44 Politics, Cooperation and ..................................................... 34, 44, 53 Pollak, K. H. ...................................................................... 19G Potter, A. H. ............................................................ ^..i!].i][" 9 Prices Raised by Government ....................................................... 29 Prisoners Leam about Cooperation ................-...'............................. 209 Prize Picture Contest ........................................................... 14, 34 Producers Cooperation ........ ^................................................... 74' 89 Promising or Perfowning ............................................................ '194 Purity Cooperative Bakery Association, Paterson, N. J. ............................ 23 R Recent Trends in American Housing ............................................... 237 Red Bread .......................................................................... igg Regli, W. E. ................................................................. 36, 127, 181 Relation, of Membership to Population .............................................. 193 Religion in the Modern World ...................................................... 155 Renner, Karl ....................................................................... 151 Reports of Swedish Cooperative Union ............................................. 217 Retail Grocers' Problems ............................................................ 75 1 INDEX PAGE Retail Stores ........................................................................ 230 Richardson, J. B. ................................................................. 4, 17 Rinear, E. H. ....................................................................... 70 RocihdaJe, English Cooperative Store ............................................... 121 Rocfc Cooperative Company, Michigan .............................................. 194 Ronn, Eskel .............................................................. 4, 106, 117, 151 Rosenbhal, E. A. ................................................................... 3, 149 Ross, William .................................................................. 167, 122 Russia, Cooperation in .................................. 13, 54, 72, 117, 128, 152, 196, 212 Russian Cooiperative Banking ....................................................... 117 Russian Dumping, On ............................................................... 191 Ryazi, Joihn C. ...................................................................... 77 S Schools, Cooperative ........................... 70, 92 109, 110, 129, 132, 133, 170, 172, 233 Scihuyaer, George S. ..........,......................'...................... 144, 228, 234 Scotland, Cooperation in .............................................. 32, 33, 192, 213 Self and Society .................................................................... 216 Senior, Clarence ..................................................................... 118 Shadid, M. .......................................................................... 203 Shall Employees be Dismissed in Slack Times .................................... 23 Shaw, Bernard, on the Professions ................................................. 97 Shaw, Tom ......................................................................... 93 Shiiplaeoff, A. ........................................................................ 30 " Shoe Factories, Cooperative ........................................................ 89 Slogans, Prizes for ................................................................. 213 Socialism ............................................................................ 118 Socialism & Cooperation ....................................................... 73, 117 Socialism not Purely Political .......................................................' 58 Socialisfe, Ooeiperation and the ..................................................... 52 Sonriicthsen, Albert ................................................................ 2, 168 Soo Cooperative Mercantile Association, Michigan .................................. Ill Soup Stone, The .................................................................... ?3fl South Africa, Cooperation in ....................................................... 232 Spradinig, Chas. T. ................................................................. 37 Statistics ...............................................46, 48, 50, 68, 92, 115, 148, 210, 230 Stocfe Ownerdhifp by Employees .................................................. 68, 90 Subscription to Cooperation ........................................ 10, 13, 37, 38, 56, 98 Sunmyside Consumers Cooperative ................................................. 90, 93 Sweden, Cooperation in ................................................. 13, 152, 202, 217 Switzerland, Cooperation in ........................................................ 192 Syf jala, Frank J. .................................................................... 168 INDEX PAGE ,L VerbrsU'dher Woche ................................................................. 77 Virginia Work People's Trading Co., Minnesota .................................... 112 Vukowitsch, P. A. ................................................................... 217 W Waa-basse, J. P. ............ 13, 15, 33, 34, 52, 72, 94, 106, 113, 116, 134, 136, 142, 153, 156, 167, 168 173 194, 207, 214, 216, 226, 234, 237 Ward, H. F. ..................................................................... 138, 155 Wanne, C. E. ............................................................... 4, 30, 44, 77 Warning to Managers and Directors ................................................. 55 Waukegan Cooperative Credit Union ............................................... 63 What is Consumers' Cooperation ................................................... 173 When Southern Labor Stirs ......................................................... 156 Which Way Religion? ............................................................... 155 Whitnall, C. B. ................................................................... 6, 124 Wholesale, Eastern Cooperative ................................................ 30, 49, 93 Wholesale Grocers' Problems ....................................................... 75 Wholesales ................................................................... 30, 48, 49 Women's Cooperative Guilds ........................................ 11, 88, 131, 152, 194 Women Study Cooperation in Germany ............................................. 129 Wood. E. E, ......................................................................... 237 Woodcock, L. E. ..................................................................... 30 Worcester, Eastern States Convention in............................................. 85 Workers Cooperative Society of Marquette, Midi. .............................. Ill, 133 Workers Credit Union, Fitchburg, Mass. ............................................. 62 Workers Credit Union, Lawrence, Mass. ............................................. 160 Workers Vote, The .................................................................. 235 Workmen's Circle Cooperative Bakery, Worcester .................................. 93 Workmen's Furniture Fire Insurance Society..................................... 89, 126 World Workers Educational Movements ............................................. 156 Year Book, People's ................................................................. 55 Year Book, 1931, C. L. U. S. A., Second.............................................. 237 Young Negroes Cooperative League .................................... 127, 145, 169, 227 Your Job and Your Pay ............................................................. 196 Youth Leagues .......................................... 8, 11, 70, 109, 127, 132, 170, 234 Zeuch, W .E. .................................................................... 5, 64 Tariff Walls Between States ......................................................... 86 Tanner, Vaino ...................................................................... 71 Telephone Companies Convene ..................................................... 70 Thomas, Norman ................................................................... 117 Thugutt, S. ......................................................................... 217 Tippett, Tom ................................................................... 156, 196 Totamianz, V. ....................................................................... 116 Trade Unions and Cooperation ..................................................... 90 Tuura, Clhas. G. ..................................................................... 57 Two Streams ....................................................................... 145 U Ukrania, Cooperation in ............................................................ 91 Under the Lash, of the Lictors ....................................................... 112 Unemployment ................................................................. 124, 157 Unemployment and its Enemies ................................................. 23, 157 Union of Cooperative Employees ................................................... 48 United Cooperative Farmers of Fitchburg........................................... 230 University of W. Va. Fraternities Install Cooperative Buying ......................; 229 20 COOPERATION PUBLICATIONS / .^OF— THE COOPERATIVE LEAGUE HISTORICAL Per Copy Per 1 iO 3. Story of Cooperation .......... $ .10 7. British Cooperative Movement.. .05 38. Consumers Cooperation in the United States (illug.), 1930.... .10 59. Cooperative Movement In Europe .05 64 Progress of Cooperation in United States ....................... -05 69. Story of Toad Lane (By Stuart Chase) ...................... -05 TECHNICAL How to Start and Run a Rochdale Cooperative Society .......... .10 A Model Constitution and By- Laws for a Cooperative Society .05 Cooperative Education. Duties of Educational Committee Defined .10 How to Start a Cooperative Whole sale ......................... .10 Why Cooperative Stores Fail.... .02 How to Start and Run a Women's Guild ........................ -10 How to Organize a District Coop erative League .............. .10 Credit Union Primer (By Ham and Robinson) .............. .50 Cooperative Housing ............ .10 Model Lease for Cooperative Apartment House ............ .10 27. 14. $6.'iO 4.i>0 8.10 4.(0 4.1,0 4.i)0 2.60 l.liO 16. 46. 11. 12. 13. 34. 30. 49. 55. 57. 62. 63. C7. '68. 70. 71. MISCELLANEOUS Model Co-op State Law ........ .10 Producers' Cooperative Industries .10 Control of Industry by the People through the Co-op Movement .10 Credit Union and Cooperative Store ........................ -05 The Place of Cooperation Among Other Movements ............ .25 Cooperative Movement (Yiddish) .02 "When the Whistle Blew" (Story, by Biruce Calvert) .......... 06 International! Directory of Coop erative Marketing (By Benson Y. Landis) .................. .25 Cooperative Homes for Europe's Homeless .................... .10 A Way Out .................... .02 A Better World to Live In .... .05 How a Consumers' Cooperative Differs from Ordinairy Business .02 Buttons (League emblem), %, inch diameter ............... .05 Sign or Transparency of League Emblem. Green and gold, 8 in. diameter .................... .25 Stock certificates, engraved, with League Emblem. Bound in books of 100, 200, or 250 To Mothers ......... ......... .02 Farmers Marketing and Consum ers Cooperation; An address by J. P. Warbasse .......... .10 International Cooperation: An ad dress by H. J. May ......... .10 l.rs .75 .85 2.UO 15.00 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) Cos' ^ .15 and Crime of Credit; (25) Resolutions Adopted by A. F. of L.; (26) Factory Workers Cooperate!: (28) Do You Know About Cooperation in Europe?: (40) Have You a Committee on Education anil Recreation?; (45) Schools and Stores. MONTHLY PUBLICATIONS Cooperation—(In bundle lots, $7.50 per hundred). Subscription, per year (foreign, $1,25).... $1.00 REVIEW OF INTERNATIONAL <~ ^OPERATION (Pub. by the I. C. A.) ........ fer Year, $1.50 $1.65 if paid by check. BOOKS The following books are recommended as con taining the best discussion of the model i Coopera tive Movement. They may be ordered through The Leaeue: Blanc, Elsie T.: Cooperative Movement in Russia ............................... ?2.50 Brightwill, L. R.: Animal "Co-op" Book— For Children ........................ Chase and Schlink: Your Money's Worth, A Book for Consumers ............... 2.00 Flanagan, J. A.: Wholesale Cooperation in Scotland, 1920 .......................... 2.00 Gide, C.: Consumers' Cooperative Societies, American edition and notes, 1922. Cloth 2.00 Hall, Prof Fred: Handbook for Members of Cooperative Committees .............. 2.00 Harris. Emerson P.: Cooperation, The Hope of the Consumer, 1918. Paper bound.... Holyoake: Rochdale Pioneers ............ 1 Indian Cooperation, Children's story ...... -Iv. Jessness, O. B.: Cooperative Marketing of f Farm Products ...................--•-- 3.0Q Kayden, E. M., and Anfeiferov, A. N.: Cooperative Movement in Russia During the War ............................. Ms flams, J. P.: The Story Retold ........ Mears and Tobriner: Principles and Prac tices of Cooperative Marketing ....... Nicholson, Isa: Our Story ................ Oerne. Andrew: Cooperative Ideals and 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 Society. 1920 .......................... 1-00 Smith-Gordon & Staples: Rural Recon struction in Ireland, 1918 ............ Smith-Gordon and O'Birien: Cooperation in Denmark ............................. Smith-Gordon and O'Brien: Cooperation in Many Lands, 1920 .................... Stolinsky, A.: The Cooperative Movement. (In Yiddish) ......................... Wairbasse, J. P.: Cooperative Democracy, (1927') . ...................... 1-5 Warbassel J.'P.:'What Is Cooperation, 1927 .75 Warne, C E.: Consumers' Cooperative Move ment in Illinois ...................... S.oO Webb. B. and S.: The Consumers' Coopera tive Movement, 1921 .................. B.OO Webb, Catherine: Industrial Cooperation, 4.00 .11: 3.20 .£5 1.25 .50 1.75 1.00 2.0- 1.00 l.OC 1.51 1.0 NortheriTlstates "Year" Book, 1928. Paper.. The People's Year Book, 1931, Cloth, $1.25; paper hound ....................... • - Year Book of The Cooperative League, 1«30. Cloth, $1.50; paper bound ............ 1-00 (Ten cents postage should be added for aU booKs.) .60 .75 ..feb. GENERAL LIBRARY 931 GEORGIA A magazine to spread the knowledge of the Cooperative Movement, where- fey the people, in voluntary associa tion, produce and distribute for their own use the things they need. Published monthly Tiy THE COOPERATIVE LEAGUE OF THE U. S. A. 167 West 12th Street, New York City CEDRIC 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. XVH, No. 1 JANUARY, 1931 10 CENTS IN THIS ISSUE My Point of View: The Constant Crisis By J. P. Warbasse Why Panics Are Inevitable By c. B. whitnaii Answers to Dillonvale Resolution on Politics Women's Guilds and Youth Leagues A Drastic Proposal to Affiliated Societies Readers Express Themselves on 17th Birthday of COOPERATION I u COOPERATION Anniversary Greetings to COOPERATION MANY OLD READERS EXPRESS THEIR THOUGHTS ABOUT THE NATIONAL MAGAZINE Many of the long-time readers of this magazine were told several weeks ago that January marks the begin ning of the 17th year since the little Cooperative Consumer first made its appearance under the editorship of Albert Sonnichsen and the support of a small group of stalwart enthusiasts. These men were interested in pro moting consumers cooperation in the Greater New York territory and in exploring the other sections of the country to learn just what cooperative societies might be in existence to the westward of New Jersey and to the north of Long Island Sound. That little paper with each succeeding issue penetrated farther and farther to the west, north and southward, bringing to hundreds of isolated cooperators the glad tidings that elsewhere in the country men and women were making the same valiant efforts to promote cooperative societies. It was the true beginning of an understanding upon which The Cooperative League and a unified cooperative movement have been founded. The present editor of COOPERATION and the staff of The League pay their humble respects to those good pioneers who made rela tively easy the work which they do today. PROM THE EDITOR OP THE CANADIAN COOPERATOR COOPERATION, with its December issue, celebrates the completion of sixteen years of publication, an event upon which The Cooperative League of the U. S. A. is to be con gratulated. In a country where the Cooperative Movement is so little understood, and so much misunderstood, and even misrepresented by people who profess to be cooperators, the continuous publication of a genuine cooperative organ is an achievement of great im portance and significance. During the whole of that period I have read COOPERATION with interest and much personal satisfaction and advantage. I have had reason to appreciate its devotion to genuine cooperative ideals, and the great ability with which they have been given expres sion. The completion of sixteen years of cooperative service has only been possible through the loyal support of the general body of cooperators, including the members, employees and directors of cooperative societies in the U. S. A., readers of the journal, and the enthu siastic, sustained and self-sacrificing efforts of the staff of The League responsible for its publication. To them, therefore, an expression is also due. I tender my best wishes for the future success of COOPERATION and a career of ever- increasinj; value and usefulness to the Cooperative Cause. Yours faithfully, GEORGE KEEN, General Secretary Cooperative Union of Canada. PROM THE FIRST EDITOR OP COOPERATION The trouble with practically all big social movements is that they are too much philo sophy and too little practice. The Consumers Cooperative Movement is unique in being exactly the opposite; all practice and no theory; a great, huge body without a head. CO OPERATION, so far as I know, is the only journal which is trying to rationalize the move ment to its own members; the only publication preaching a simon-pure Cooperation as a remedy for the anarchy of capitalism. The day will come, I think, when its pages will be studied more thoughtfully than they yet have been. Talking to a generation pernaps yet unborn is a thankless task, but it bears fruit nevertheless. Sincerely, ALBERT SONNICHSEN Willimantic, Conn. COOPERATION FROM THE LEAGUE'S FIRST SECRETARY I send a word of congratulation to The League and its magazine COOPERATION on this seventeenth anniversary of its original publication. I had the pleasure of knowing the magazine's original editors, and I have always followed its progress with a great deal of interest. Its subject matter has been increasingly important and the manner of presenting it more useful. It is very small and reaches only a few people, but it performs the incal- cula'ble service of holding before its readers the possibility of effective resistance to the many undemocratic, antisocial tendencies in American life and business. We all live in communities and depend in large measure for our happiness upon the conditions of community life; and it is in the community that democracy stands or falls. The development of cooperative machinery within our community is something that each of us can encourage; and organized self help, together with the spirit of mutual aid which makes it possible, is our only warrant that we shall achieve freedom and suitable govern ment. Yours sincerely, SCOTT PERKY Batavia, N. Y. FROM ANOTHER OF THE ORGANIZERS OF THE LEAGUE I do not want to miss the opportunity to extend to COOPERATION on its seventeenth birthday my sincere congratulations, and to express my appreciation of the splendid service it is rendering in fostering the ideals and promoting the practice of cooperation in this country. The achievements of our magazine are due not only to the untiring efforts of its de voted staff, but also to the loyal support of all its readers — rank and file members, em ployees and directors alike — which has been a vital element of its success. Let us continue our support in an ever greater measure, so that our magazine may be able to extend more and more its field of usefulness in the service of our great movement. Yours for Cooperation, E. A. ROiSENTHAL President, Consumers' Cooperative Services, N. Y. City FROM A FORMER DIRECTOR Editor COOPERATION:— Noting with interest the approach of the 17th birthday, may I send a word of congrat ulation. It has certainly been a valuable thing to have a messenger sounding a clear note of progress and enlightenment in our backward business of distribution. Dr. Julius Klein of the Department of Commerce recently called attention to the fact that on the average ten per cent was wasted in ruinous, inefficient distribution. If constant dropping wears away the stone, your clear voice should some time help the poor family which loses one in every ten of its food dollars. May COOPERATION long continue the true note. Fraternally, EMERSON P. HARRIS Author, "Cooperation, Hope of the Consumer." FROM A WELL-KNOWN ECONOMIST AND TEACHER Your 17th anniversary gives me the happy occasion to send much more than a con ventional message of congratulation. I have long watched the patience and tenacity with which your leadership, with its loyal following, has held to its main purpose. The defects and inner disagreements which have shadowed this great movement from the first, seem never to have lessened your ardor or your confidence. As for your magazine, I never like to miss a single issue. I like the candor and frank ness of its discussions, but most of all perhaps because one sees there so vividly the more spiritual side of the movement as a whole. Nowhere is there such hope of a self-respecting democracy as that promised by this movement. With every best wish, I am, Very sincerely, JOHN GRAHAM BROOKS Cambridge, Mass. COOPERATION A WHOLESALE MANAGER WRITES The present economic crisis, with its attendant mass unemployment of the industrial workers and prostration of millions of farmers, brings out forcefully the iniquities and social injustice of the present capitalist system which is based upon exploitation and the profit motive. 1 Now, if ever, is the opportune time to stress the necessity of changing the present economic system of society, and to teach the working class to organize for the accomplish ment of that task. In that achievement the cooperative movement is one of the essential means by which the workers are trained to take care of their own affairs. The mass activi ties of the cooperative movement provide a collective education whose significance and importance in the final result cannot be overestimated. The fact that cooperation offers immediate economic advantages to those who most need them, namely—to the workers and farmers, its appeal is all the more timely and ef fective during the period of general economic crisis. That fact we cooperators must utilize with redoubled activity. We must get a more thorough knowledge of the principles of co operation spread among the workers and farmers of this country. In this work our na tional magazine COOPERATION can play a very important role. For the few coopera tive oases that we have been able to build in this "Great American Desert," COOPERA TION has provided an important source for guidance and encouragement. Let us all help to make it still better able to cope with the tasks and responsibilities of the future. ESKEL BONN Manager, Cooperative Central Exchange, Superior, Wis. FROM A READER OF TWELVE YEARS' STANDING Editor COOPERATION:— Kindly allow one of your continuous readers since 1918 to congratulate you on the completion of sixteen years of useful service and fidelity in promoting the high ideals of consumers cooperation. Also allow him to add a bit of testimony regarding how you changed him from a firm believer in individual competition to a staunch believer in co operation and the future "cooperative commonwealth." The writings of Dr. and of Mrs. J. P. Warbasse have helped him most during the last six years of his intensive research into the histories (experiences) of the world coopera tive movement in quest of the underlying fundamental social principles of cooperative suc cess and the causes of cooperative failures. As in the past, during the coming years, may your pages continue to overflow with records of such experiences. May the leaders, directors and members who write be careful to analyze the causes of the failures as well as to state the reasons for the successes in order to be of much service to students of cooperation. J. B. RICHARDSOiN Lakeside, Wash. FROM ONE WHO HELPED ORGANIZE THE LEAGUE It is difficult to realize that COOPERATION is seventeen years old, so rapidly do the young grow up. I am proud to be associated with the pioneers, however humble my position among them may have been, for I still believe that in Consumers Cooperation is to be found the solution of the economic ills that plague us and which, are just now receiving so much perplexed attention. As it is a matter of education, experimentation and profit—a slow process—I would bid COOPERATIOiN be patient and continue to keep the faith. PETER HAMILTON Brooklyn, N. Y. FROM THE DIRECTOR OF THE LEAGUE CORRESPONDENCE SCHOOL Greetings to COOPERATION on its seventeenth birthday! This sturdy champion of a new social order has now weathered the dreary decade of the 20's. It has seen the rise and fall of the belief that a new type of capitalism could bring high incomes, satisfactory products and security of work. With the prosperity myth thus disposed of, the world co operative movement should go forward with even greater vigor in its work of eliminating the profit system. In this endeavor, COOPERATION will, as in the past, carry its share. Sincerely, COLSTON E. WARNE Amherst College. COOPERATION^ FROM A FORMER DIRECTOR For seventeen years the magazine COOPERATION has been the dominating influence in keeping ever before its readers true principles of Rochdale cooperation. It undoubtedly could not have done so in any degree as efficiently or consistently had it not been for the staunch adherence to cooperative principles and the complete understanding and ac companying sympathy of problems facing cooperative societies all over the nation, of Dr. J. P. Warbasse. Any tribute paid to the magazine COOPERATION must perforce be partly his. On this seventeenth anniversary of the printing of the first issue of COOPERATION, the Soo Cooperative Mercantile Association sends its most sincere felicitations, declaring the worth of the publication as being beyond monetary valuation, and extends to the staff of editors best wishes for an equally successful future. W. H. CLOSSER Vice President, Soo Cooperative Mercantile Association Sault Ste. Marie, Mich. FROM A LABOR EDUCATOR My heartiest congratulations on an anniversary that marks sixteen years of hard work for and consecration to. an ideal economic purpose. Such consistent and constant educational effort in this intense era of "rugged individualism" indicates the existence of a body of men and women devoted and loyal to the cooperative idea. These men and wom en are the true pioneers. Along with COOPERATION they have my sincerest admiration. W. E. ZEUCH Director, Commonwealth College, Mena, Arkansas. FROM ANOTHER FRIEND OF MANY YEARS So the magazine is now about to enter its seventeenth year! It is said that "the first hundred years are the hardest." However, the first sixteen years have seen some decided improvements in the cooperative situation in these United States, and I cannot but feel that some of this is due to the efforts that have been concentrated in The League and our magazine, COOPERATION. Those sixteen years have seen a wave of sentimental cooperation go over the country and end in sickening failure, much of it; they have seen much fakery in cooperation. CO OPERATION, throughout this period has mirrored much of this, has explained some of it, and helped in the beginnings of order, of sane administration and development. It is now helping to ward off the candle-snuffer of political action. I cannot but have in mind the contribution made by Dr. Warbasse, both of time and money, in the work that has been done in this connection. Surely, we must remember this, not in a foolish and bunk sentimentalism, but in sincere respect and admiration for the work he undertook and carried forward against great odds. Of course, the rank and file have done some things and there can be nothing but praise for those who have helped; but it is safe to say that COOPERATION with the wholehearted support of all those who call themselves cooperators, or who are members of organizations which style themselves cooperatives, can achieve a vastly greater stature than at present. I give you my best wish for such a happy event, not afar off, but soon. Sincerely, U. G. MOORE Seattle, Wash. YET ANOTHER READER OF A DECADE Dear Friends:— It is the misfortune of most organs of propaganda societies that much of their contents is old stuff to the insiders and seldom reaches the outsiders. COOPERATION is an ex ception, so far as I am concerned. I read it eagerly, because I am sure to find some facts that I can use in my own missionary efforts, and some ideas that help me to think more clearly. Also it is the kind of publication that one can hand to a prospect in full con fidence that it will make a good impression. I offer my hearty congratulations for your continued success. Yours truly, ARCHIBALD CRAIG Jersey City, N. J. C O O P E R A TI O N Why Panics Are Inevitable By C. B. WHITNALL Secretary, Commonwealth Mutual Savings Bank, Milwaukee Our manner of financing creates a tremendous discrepancy between ac tual values given to labor and the in flation caused by interest^bearing obligations and dividend exploitation. The readjustment of affairs induces deflation that makes the people hard up. In the consideration of values, we are obliged to use money (the dollar) as our measuring stick. Money is a receipt for service per formed or a value added to the world's wealth; it differs from a ware house receipt because it is not based on any particular property. It may have* been given for making a side walk, but may be exchanged for gro ceries, clothing, etc.—it is simply a measure of value at the time ex changes are made. The currency that represents these credits is used by individuals in making personal ex changes to save bookkeeping, but for larger transactions it is accumulated by bankers, not by hoarding the cur rency but by recording ledger ac counts. The banker is the communi ty's bookkeeper. There is nothing productive about a bank, but its serv ice is of value, and this service should be paid for as service. Banks should not subsist by graft, that is, loaning or paying out less than the borrower is obliged to pay back. Bankers Entitled to Service Charge Only For instance, a cargo of coal arrives in October. The banker is the only person in town who has accumulated enough credits to balance the value of the cargo. He loans this to the coal dealer, who collects pay from his cus tomers and gradually returns the credit to the bank. The bank is en titled to service pay just as is the ship that carries the coal. The coal dealer should add this cost to the price of the coal as well as a service fee for his own work. This is a division of labor and is the most efficient and econom ical. The banker is as worthy of his hire as any other person, but it is not customary for banks to charge for service. They charge the coal mer chant interest, which very often is an equitable amount for service but it is arbitrary and often in excess of the service. It is a graft regardless of actual equity and invariably gives the banker more or less advantage. It should be borne in mind con stantly that all property, on which money credits are based, begins to deteriorate as soon as produced. Therefore, in time these credit values shrink below the credit recorded, and the dollar's value is only maintained by the fact that goods are continually being consumed and replenished by new. A warehouse receipt for wheat ten years old would be exchangeable only at a discount but for the fact that the original wheat had been de livered to the miller and the farmer had sent in a fresh supply. However, there is some depreciation, buildings, machinery, etc. that wear out, but this depreciation is so slight and well distributed as not to cause a hard ship. Perhaps the occasional destruc tion of currency by fire or otherwise may nearly balance. Banks Gain As Property Depreciates Modern or capitalistic bookkeeping does not construct balance sheets on the equal exchange or cooperative principle. Modern business does not conduct the exchange of values on an equal or equitable basis. The credits based on property that is constantly deteriorating are loaned as interest- bearing obligations or invested in div idend exploitation. In this manner there is created an ever increasing discrepancy between actual property values available by the actual pro ducer of wealth and the financier's claim for credits. There is gradually COOPERATION shown on the credit side of the finan cier's ledger a tremendous unearned increment that paralyzes mutual ex changes. The credits of the produc tive or industrial portion of our popu lation are at a discount. For instance, dividend payments in August of this year totalled $447,687,154, an increase of nearly six million dollars over the dividend payments made in August, 1929. Yet everyone knows that the people's pay envelopes have been de flated, and in thousands of cases been entirely empty. Interest-bearing ob ligations always create unequal re compense for actual service, and when this inequality passes the point of endurance, hard times and unem ployment are inevitable. When you see a person consuming a dollar he did not earn, you know that some one who did earn it has been deprived of it. Years ago people on the Island of Guernsey built a market place, new docks, and other municipal improvements, for which they issued to labor and for materials due bills that might be called script. These due bills were made returnable in payment for taxes. This gave them a value as recognized by the city gov ernment, representing improvements the benefit of which were enjoyed by the whole population and were there fore exchangeable. This worked beau tifully until London financiers put a stop to it. There was no money lend ers' graft in it. It was virtually con sumers cooperation applied to munic ipal improvements. Cities Not Allowed to Issue Currency Our cities, most of them, borrow credits because they are too impa tient to wait for the accumulation of taxes, so they put the entire popula tion under bondage by issuing bonds, bearing interest, and usually matur ing serially in twenty years. Thus if the rate of interest be 5%, each $1,000 bond will cost the city $1,500, just 50% more than the municipality received value for. Just think how this affects some. For example, two babies are born. One inherits some of these bonds, the other inherits nothing. Is it not true that one is held in bondage by the other? This, of course, is not chattel slavery, but it is financial slavery. We did away with chattel slavery in Ab raham Lincoln's time. I wonder which of our presidents will have the cour age to do away with financial slave ry. Why may not our municipalities do what national banks are doing? They secure government bonds and deposit them with Uncle Sam as collateral security for greenbacks that Uncle Sam issued to them. The bank main tains ownership of the bonds and col lects the interest on them. All the bank is prevented from doing is to sell them to a third party. But the greenbacks are paid out over the bank's counter as the bank's own money. It is the taxing power back of the government bonds that makes the national bank notes good. Why can not Milwaukee or any other city send its bonds to Uncle Sam and get green backs to pay out for improvements and thus avoid payment of interest? Of course, the capitalist who Is ever eager to get possession of Milwaukee bonds will object because it would prevent him from collecting semi- annually enough to keep him in lux ury for which he gives nothing in re turn. This is where millions upon mil lions of unearned increment are ab stracted from productive energy and lessen the producer's ability to pur chase for his own welfare property equal to what he has contributed. This discrepancy always induces in flation for a time, but when these in terest and dividend obligations reach a demand in excess of what the pub lic can pay from its unequal portion of actual product, the day of reckon ing is forced upon us. It is not a psy chological symptom. It is deprivation in earnest. As people are able to com prehend this situation, they will ap preciate the higher standard of civili zation and assist in its gradual devel opment through the efforts of the Consumers Cooperative Movement. COOPERATION News and Comment LEAGUE INSURANCE DEPART MENT OPENED The new insurance department, authorized at the recent Cooperative Congress, was officially launched on December 16th by the executive com mittee of the board of directors of The League. This department is to operate as an independent corporation named CLU- SA SERVICE, INC. The stock will be held in trust by the board of directors of The League under a special trust agreement. William Hyde who organ ized this department is the Treasurer- Manager in charge. Insurance on household furniture coming to The League office will be placed with the Workmen's Furniture Fire Insurance Society already affil iated with The League. Life insur ance will be turned over to the New Era Life Association, likewise already affiliated. For other lines of fire and casualty insurance, agreements have been made with certain large mutual insurance companies whereby CLU- SA SERVICE, INC. will receive com missions on all policies written by it. Mr. Hyde will act as a general in surance broker and will also be agent for some of these companies. The first line of business open is that of fidelity bonding. The largest mutual in the country has offered a position bond to The League under which blanket fidelity protection is offered to the bonded officers or em ployees of The League, district leagues, and all societies affiliated with The League which are audited by The League Accounting Bureau or by certified public accountants ac ceptable to this bureau. A large vol ume of such business is already as sured from the societies in greater New York alone and all of them will receive immediate and very substan tial benefits in reduced premiums on their fidelity bonds. COOPERATIVE ELECTRIC TRANSMISSION More than 3,000 farmers in a dozen organized rural districts in Pierce County, Washington, are getting the benefits of cooperative service for transmission lines built by themselves and directly connected with the mu nicipal power plant at Tacoma. Ac cording to an article in the Grange News, The Elmhurst Mutual Co., an example of this system, charges its farmer members five cents per kilo watt hour for the first twenty hours and one cent per kilowatt hour there after. The benefits of this coopera tive service directly tied up to munici pal ownership may be clearly seen when rates for the Mutual Company are compared with those paid by con sumers to various of the private com panies in the state. Mutual Bate Compared with Trust Extortion 20 KWH 40 KWH 80 KWH Mutual Company $1.00 $1.20 $1.60 Republic (Private) 3.40 6.80 13.25 Raymond (Private) 1.60 3.20 6.10 Wenatchee (Priv.) 1.50 3.00 5.20 Kelso (Private) 1.40 2.80 4.80 YOUTH LEAGUE AT SOO The Soo Cooperative Mercantile As sociation of Sault Ste. Marie, Michi gan, now boasts of one of the few leagues of young people to be found among the non-Finnish societies in the country. The organization meet ing was held on November 17th with Toivo Tenhunen, youth organizer from Superior, present. At the initial meeting 25 young men and women between the ages of 14 and 24 registered their intention to become loyal members of the organi zation. The meeting elected Robert Vauh- konen as organization secretary, Irene Scozzafave as recording secre tary and John Smith as treasurer. COOPERATION FARMERS AND THE FARM BOARD "The Board has at its disposal 500 million dollars to make farmers' co operatives cooperate, but not one cent to help them fight each other," is the high-sounding paraphrase of a fa mous epigram that is being repeated in speeches all over the country by a member of the Federal Farm Board. Action speaks louder than words, and Farm Board action makes this para phrase just a bit of hollow rhetoric. In the field of live-stock marketing alone—to say nothing about grain and other lines—the Farm Board has already set up new marketing agen cies at St. Joseph, Mo., and Denver, Colo., to compete with well-estab lished and successful cooperative marketing agencies that are render ing excellent service and are open to all live-stock producers. In the territory of the Omaha mar ket, a field representative of the Farm Board is holding meetings, arranged by county agricultural agents, to or ganize a new live-stock marketing agency at Omaha to compete with the Farmers Union Live Stock Com mission, the oldest of the central live stock cooperatives, and one of the most successful. Since this agency was established in 1917, it has dis tributed patronage dividends aggre gating over a million dollars. _ The only sin committed by these agencies, and the sin for which the Farm Board is setting up competing agencies to fight them, is that they have refused to surrender their iden tity and autonomy by joining the Farm Board's national live-stock cor poration. LABOR BANKS IN THE UNITED STATES The decline in the amount of resources of labor banks, superficially hailed ten years ago as the solution of all financial problems for labor, Is clearly shown in the following table published by the Bureau of Labor Sta tistics of the United States Department of Labor: End of December 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 No. of Banks 2 4 10 18 26 36 35 32 27 22 14 Share Capital $960,000 1,280,000 2,050,473 4,222,230 6,441,267 9,069,072 8,914,508 8,282,500 7,537,500 6,687,500 4,112,500 Total Resources $3,628,867 12,782,173 26,506,723 51,496,524 85,325,884 115,015,273 126,533,542 119,818,416 116,307,256 108,539,894 68,953,855 WHAT THE FARMERS NEED The farmers will never get relief from their distressed condition by any help from Washington. Their only hope is in themselves. From all I can learn from government and other sources, farm debts are getting larger and larger and farm conditions be coming Jiarder and. harder. Without efficient cooperation we farmers will surely reach the peasant level. Co operation, to be effective, must be free of the present dominant financial methods. It will have to become fearless, dominant, independent and aggressive. The farmer, to save himself and his country from be coming an oligarchy of wealth, has got to take his own business into his own hands from producer to consumer. The very greed of the business world, which has built up the present system, has furnished the farmer his opportunity to become the dominant force in his own affairs. Is he big enough and fearless enough and free enough from personal selfish ambition to meet the crisis that is upon him? A. H. Potter, Bayfield County, Wis., in The Farmer. 10 COOPERATION Drastic Proposal to Affiliated Societies SHALL SUBSCRIPTIONS TO "COOPERATION" BE INCLUDED IN PER CAPITA MEMBERSHIP DUES? "Outlay for cooperative intelligence is just as important as outlay for new paint on the store building or advertising of special sales in the local newspaper." Such was the general tone of a discussion at the meeting of the Board of Directors of The League at Superior in October. Since nine out of every ten societies will not subscribe for the national cooperative maga zine for even their own directors and employees why should we not work out some method whereby these people should automatically receive the journal regularly each month? Why wait for the haphazard interest and doubtful action of presidents or secretaries before those responsible for the success or failure of the local society are assured of getting regular information about events in the cooperative movement? We all are very careful to charge up to operating expenses the depreciation on counters, shelving, or the old horse that pulls the delivery wagon; is it not at least of equal importance that a similar charge be made to depreciation of cooperative interest and enthusiasm among the officers, store clerks or delivery men? We now im prove our bakery equipment or refrigerating machinery as rapidly as fi nances permit; should we not also regularly spend something for improving the mental equipment of the men and women meeting in directors' meetings or charged with the responsibility for presenting the cooperative message to those who come to buy the cooperative goods? The upshot of this discussion was the proposal that societies affiliated with The League should, in addition to their regular dues based on number of members (or sales turnover), also pay a sum sufficient to guarantee that every director and every regular employee should receive the magazine CO OPERATION throughout the year. The only logical guarantee of this kind would be an amendment to the Constitution of The League making such an additional tax a part of the membership fee (as is done by so many labor unions and farmer's fraternal organizations). The following letter from an alternate director of The League states the case briefly. Officers of other societies are invited to write in their opinions of the proposal. EDITOR COOPERATION: It has been emphasized by many of our leaders that the Cooperative Movement will not grow .any faster than we are able to educate and teach the masses the (principles and philosophy of Consumers' Cooperation. If this is true, no wonder that our American Move ment has been growing at such a slow pace. The writer is of the opinion that the Coopera tive speakers and agitators, no matter how learned and .brilliant, are not able to school and train the membership and the people in general as effectively as our own press. In most of the European countries, the Cooperative press has become a real power. On their subscription lists are listed not only functionaries and employees but every member receives a copy of the official organ of his respective educational union. There are no doubts in my mind that if the same method were practiced in this country, we would have a much more aggressive and larger movement. At the Superior Congress a suggestion was made that in order to assure a wider distribution for the magazine COOPERATION and at the same time bring to it greater financial support which would permit us to improve the general appearance and contents, each affiliated society should subscribe for a suf ficient number of copies so that every director and employee should have one each month. It was also proposed that we might add to the present per capita dues an additional amount to cover these subscriptions for employees and directors. At the present time there are only two or three large societies in the United States which definitely are following this principle of subscribing for all of their directors and employees. How about the rest of the societies? If the European societies have found it worthwhile to subscribe for their entire membership, it seems to me that our societies should at least subscribe for directors and employees. To make a long story short, my proposal is that we have a direct tax similar to the per capita dues which come from the treasury of the local Cooperative. EDWARD CARLSON, Cooperative Trading Company, Waukegan, 111. COOPERATION 11 I Northern States Cooperative League 2100 Washington Ave., North, Minneapolis, Minnesota GUILD MOVEMENT MAKES RAPID PROGRESS Less than a year ago some energetic Finnish women of Superior, Wis., led by Helen Hayes, Esther Pesonen and others, began to organize Wom en's Cooperative Guilds in localities where there had previously been in existence so-called "Women's Sec tions" of political Finnish Workers' Clubs. Many of these Women's Sec tions had become badly demoralized by the furious controversy among the Finnish organizations over the ques tion as to whether the cooperatives should be controlled by the Com munist Party or their own member ships. Most of the Women's Sections followed the lead of the Communist Party, but in many localities there were strong groups of women who supported the Cooperative Central Exchange in its attempt to beat back the attack of the Communist Party on the cooperatives. These women have now been organized into Wom en's Cooperative Guilds of which there are at present 41 functioning in the Central Exchange territory, with a total of 718 members. New lo cals have been recently organized in the following localities: Brantwood, Prentice, Highbridge and Phelps in Wisconsin; Kettle River, Floodwood, Pine River and Onnela in Minnesota. Guilds are also under formation at Barnum, Minn., and Crystal Falls, Mich. Some of the guilds have arranged weekly classes for children. At these classes the children are taught to un derstand the principles of the co operative movement. THE COOPERATIVE YOUTH LEAGUE One of the fastest growing coopera tive organizations to be found any where is the new Cooperative Youth League which has been organized in the Cooperative Central Exchange district, with headquarters in Super ior, Wis. Its secretary-organizer and moving spirit, Toivo Tenhunen, re ports that in the first days of Decem ber there were 30 local Youth Leagues actually functioning, with a total membership of approximately 600. A "ew months ago there were none. The purpose of this Youth League is to interest young men and women, between the ages of 14 and 25, in co operative work, and make them thor oughly acquainted with the coopera tive principles and ideals. Harry Roine, a graduate of the C. C. E. Training Courses which were completed in Superior on December 6th, is now touring Youth League lo cals in Minnesota and organizing new units. In January the Enlarged District Committee of the new Youth League will meet in Superior. It consists of 17 members. New units of the Youth League have been recently organized at Wauke gan, 111., and Sault Ste. Marie, Mich. The largest local unit is that of Brantwood, Wis. Next in size is the Coop. Youth League of Rock, Mich. Superior, Wis., takes the third place. The first convention of the Cooper ative Youth League was held in Su perior on November 19th and at tended by delegates from 19 of the locals. Plans were laid for developing a young people's sports movement, for conducting cooperative educational work among the younger children and the ultimate creation of a Junior Co- operators movement. Proposals were made for the holding of cooperative youth courses next summer. Fra ternal affiliation with the Northern States League and through it with The Cooperative League of the U. S. A. was approved. 12 COOPERATION WHAT'S GOING ON IN THE N. S. C. L. DISTRICT j The Farmers' Cooperative Sampo of Menahga, Minn., has recently opened a branch store at Wolf Lake. Wni. Halmekangas, a graduate of the C. C. E. Training Courses is general manr ager at Menahga. 1 * * * \ The semi-annual meeting of the Eben Farm ers Cooperative Company of Eben Junction, Mich., voted to accept the offer of the Ish- peming Consumers Coop. Association to amal gamate their organization with the Eben or ganization. The cooperative store at Ishpeming will thus become a branch store of the Eben Farmers instead of being operated as an inde pendent cooperative, as hitherto. The Eben or ganization has previously been operating three branch stores (Chatham, Munising, Gwinn), be sides its main store at Eben Junction. Wm. Niemi is general manager. * * * Some time ago the Denham branch store of the Farmers' Coop. Mercantile Association of Kettle River, Minn., was destroyed by fire. The Kettle River organization promptly reopened the store in another building. The main store at Kettle River is being managed by Peter Kok- konen, veteran cooperative manager and a di rector of the Cooperative Central Exchange. The Denham branch is managed by Arnold Lundeen, another graduate of the C. C. E. Training Courses. II * * * I The Gowan Cooperative Association of Gowan, Minn., has recently voted to amalgamate with the Floodwood Cooperative Association. Gowan is located about 6 miles from Floodwood. The store at Gowan has been hitherto operated as an independent organization, but has now be come a branch of the larger and stronger or ganization at Floodwood. Eino Antila, a grad uate of the C. C. E. Training Courses is general manager at Floodwood, and Toiv,o Rahikainen, a graduate of the N. S. C. L. Training School of 1929, is managing the new branch store at Gowan. Evert Kilkkinen, for many years manager for the Farmers Cooperative Society of Little Swan, Minn., has recently resigned and gone Into farming. The new manager at Little Swan is Victor Axelson. * * * The cooperative store at Van Buskirk, Wis., is now being managed by Bert Aalto who for merly managed the Munising branch of the Eben Farmers Coop. Store Company of Eben Junction, Mich. Cooperator Aalto is graduate of the C. C. E. school. * * * Some time ago Filus Anderson resigned as manager of the Farmers Coop. Store of Owen, Wis. Niilo Marttila, formerly clerk of the Clo- quet Coop. Society and a graduate of the C. C. E. Training Courses, is the new manager. * * * Geo. Salo, formerly manager of Toivola Coop. Merchantile Company of Toivola, Minn., is now managing the business of Wawina Cooperative Society which operates its main store at Wa wina, and a branch at Jacobson, Minn. Walter- Peters, a graduate of N. S. C. L. Training School and for many years clerk at the Kettle River Coop. Store, has recently been elected manager of the Farmers' Cooperative Company of Squaw Lake, Minn. * * * Matti Niemi, a veteran cooperative manager who a few months ago was discharged by the board of directors of the National Cooperative Company of Ironwood on account of political reasons, has been elected manager of the Workers Cooperative Society of Marquette, Mich. Cooperator Niemi sided strongly with the Cooperative Central Exchange in the contro versy that broke out a year .ago between the C. C. E. and the Communist Party. Niemi Is a capable manager and the only reason for his dismissal was his intrepid stand on the con troversial question. There are a few other simi lar cases where a cooperative manager has been discharged by communist-controlled boards be cause they stood up for cooperative unity and elimination of political control from the co operatives. Cooperation Abroad STORE MANAGERS IN DENMARK . There are about 1800 store mana gers in the cooperative movement in Denmark, all of them known by the title of distributor. In the country towns, these distributors are given free living quarters and are paid a salary on a commission basis in pro portion to turnover. From this com mission each distributor must pay his assistants. All of these distributors are united in the Distributors Association of Denmark which is not in any way affiliated with the trade union move ment. Its chief purpose is to improve the standards of store management and administration. A special Dis tributors School, first established in 1913, has an average enrollment of 35 students and is for the instruction of all store employees. Women attend special courses between May and Au gust and men attend between Novem ber and April. There are in each term general courses in arithmetic, geog raphy, Danish language, gymnastics, correspondence, the various sciences, and also special courses for shop as sistants in bookkeeping, store ac counting, commercial arithmetic, cor respondence and window decorating, etc. Liberal grants are made to the school by both the Wholesale Society of Denmark and the Distributors As sociation. The superintendent of the school is Jens Fredericksen. A COOPERATOR FORCED OUT OF BRITISH CABINET Alfred Barnes, M. P. and chairman of the Cooperative Party, has been forced to resign a position carrying a salary of $5000 a year as Junior Lord of the treasury. COOPERATION 13 There is in England a law forbid ding anyone who is a director in any public company to hold a government post. A director of a private company, however, may take such a govern ment position. Mr. Barnes is an un paid director of the National Cooper ative Publishing Society and there fore had the choice of maintaining his cooperative position without pay or the government position with a handsome salary: and he chose the former. Meanwhile directors of large private corporations so long as their shares are not quoted on the stock exchange, may hold just such posts as that vacated by Mr. Barnes. STRUCTURE OF RUSSIAN MOVEMENT SIMPLIFIED The exceedingly complicated struc ture of the Russian consumers co operative movement has recently been vastly simplified due to a decision of the last Congress of Cooperative So cieties. Formerly the head and center of the movement, known as Centro- soyus, was divided into five parts, one for each of the Soviet governments. Under the new plan there is one head known as "Centrosoyus of USSR and RSFSR." Immediately beneath this head, under the old plan, there were transport sections of the movement, cooperative provincial unions and central workers sections. Under the new plan there is merely a coopera tive union of provinces. Next in order was the old maze of the divisional co operative unions, workers sections of provinces, village cooperative socie ties, town cooperative societies, work ers cooperative societies, and trans port cooperative societies. There are now only two such divisions, viz., workers cooperative societies and dis trict cooperative societies covering the larger rural districts. GERMAN COOPERATIVE MATCHES In the "Point of View" in November 1930, the statement that, in time the Germans will be able to manufacture their own matches, is not correct. The German Cooperative Wholesale So ciety for several years has had two large match factories which com pletely supply all of the needs of the German cooperative consumers. Un fortunately the Swedish cooperative societies are still dependent upon the match trust for their matches. Per haps we may be safe in saying that in the course of time the Swedish co- operators also will make themselves independent of the big match makers who are doing so much to make the world safe for cigarettes. J. P. W. Circulation Page Every Executive and Employee an Intelligent Cooperator With that motto for a slogan, at the end of 1930, the office of The League inaugurated a campaign to double the circulation of the magazine CO OPERATION, writing to a selected list of 500 consumers' societies throughout the country, urging that every society enter a subscription for each one of its directors and employ ees. Unbelievable though it may seem, 90% of the Boards of Directors of co operative societies in the United States subscribe to no cooperative journals whatever for their own Board membership, nor for the em ployees whom they depend upon to build up the loyalty of the consumer shareholders. They send out these workers to face a community organ ized for profit and ask them to build a cooperative business without tools, even as the ancient Israelites were told to make bricks without straw. It is remarkable that the death rate of cooperative stores is not even higher than it is. Clerks, bookkeepers, truck- drivers, branch managers can scarce ly promote a cooperative movement of which they have no understand ing. Nor can directors who themselves receive no cooperative literature be 14 COOPERATION expected to appreciate the impor tance of training cooperative employ ees. In fact, presidents, secretaries and managers themselves who have no contact with the organized con sumers movement in America may be expected to be satisfied with a Board of Directors as completely unen lightened as themselves. I This vicious circle of ignorance which encompasses the cooperative societies in most of the organized communities of the country must be broken. The readers of this journal and particularly those who them selves are cooperative officials must take the initiative. ABE YOU SATISFIED WITH THE CO OPERATIVE UNDERSTANDING OF EVE RY DIRECTOR AND EMPLOYEE IN YOUR OWN SOCIETY? PROGRESSIVE CONSUMERS COOPERATIVE SOCIETIES THEY EQUIP THEIR EXECUTIVES AND ADMINISTRATORS WITH NECESSARYi INFORMATION The Society Amalgamated Cooperative Apartments, N. Y. City Cooperative Trading Co., Waukegan, 111 Rock Cooperative. Company, Rock, Mien. Cooperative Central Exchange, Superior, Wis. Cloquet Cooperative Society, Cloquet, Minn. Soo Cooperative Mercantile Ass'n., Sault Ste. Marie, Mich. United Cooperative Society, Maynard, Mass. Consumers Cooperative Services, N. Y. City Cooperative Bakery of Brownsville, Brooklyn, N. Y. Kanabec County Cooperative Oil Association, Mora, Minn. Commonwealth Mutual Savings Bank, Milwaukee, Wis. Cooperativa Italiana, Winchendon, Mass. Workmen's Cooperative Mercantile Association, Chicago, 111. United Cooperative Society, Gardner, Mass. Farmers Cooperative & Educ. Union of Nebraska Workingmen's Cooperative Bakery, Lynn, Mass. Workmen's Circle Cooperative Bakery, Worcester, Mass. Workmen's Furniture Fire Insurance Society, N. Y. City New Era Life Association, Grand Rapids, Mich. Prentice Cooperative Supply Company, Prentice, Wis. Consumers Cooperative Association, Milwaukee, Wis. Cooperative Boarding House, Cleveland, Ohio Plymouth Cooperative Oil Company, Le Mars, la. Stelton Cooperative Association, Stelton, N. J. Settlers Cooperative Trading Company, Bruce Crossing, Mich. Cooperative Trading Association, Brooklyn, N. Y. Russian Workers Cooperative Stores, Brooklyn, N. Y. Midland Cooperative Oil Association, Minneapolis, Minn. Minot Cooperative Company, Minot, N. D. Chatham Farmers Cooperative Store Company, Chatham, Mich. Dorchester Cooperative Company, Dorchester, Wis. And many others taking 5 or less. The Number of Copies of COOPERATION Received Each Month 100 70 58 30 25 24 20 16 12 11 10 10 10 10 10 10 10 10 10 10 10 10 10 8 7 7 5 5 5 5 5 LEAGUE OFFERS $50 PRIZE The 'best painting to be submitted to the offices of The Cooperative League will win a •sash prize of $50. This painting is to be used n the 1932 calendar, which will be distrib- ted by cooperative societies. The painting must have genuine artistic value and must be symbolic of Cooperation. All entries for the contest must reach The League office before April 1st, 1931. COOPERATIO N? 15 My Point of View By J. P. Warbasse THE CONSTANT CRISIS We now have collapse of business. Wide-spread unemployment, poverty, begging and hunger are everywhere. Along with them goes the inevitable demoralization that is their natural companion. The attitude of our dominant class toward this crisis is that it is like a spell of bad weather. It is like a visita tion of Providence. It is to be expected every so often. It is to be endured as best it can until the sky clears and the sun appears again. It will be fol lowed by the blessed prosperity. And then the world will begin to move on toward better and bigger things. Thus our rulers tell us. They do more. They give us the encouragement that mod ern business is so organized that it will soon be possible to prevent these crises. Indeed, it had become the gos pel of Wall Street, just prior to Octo ber, 1929, that no more crises would come. Presidents Coolidge and Hoover and their respective governmental ma chines, acting as the agents of big business whose mouthpieces they are, solemnly told the people that no crisis was imminent. The Partnership of Ignorance and Greed Today all over the country, com munities, boards of trade, charity or ganizations, and even bankers' as sociations are busy holding their meetings and pressing their cam paigns to raise money "to relieve un employment distress." But not one of them speaks a word nor whispers a syllable that might indicate the faintest glimmer of understanding of the cause and the prevention of the economic crisis and the associated unemployment. The world is caught by the profit system on one side and ignorance on the other, and between the two it seems as though it is destined to come pretty close to having its life crushed out. Seven major depressions have oc curred in the United States during the half century 1878-1928. Six of these depressions, (1878-9, 1884-5, 1893-4, 1907-8, 1914-15, 1920-21) coincided, as is now the case, with world-wide business crises. The de pression of 1896-7 was peculiarly our own. The present depression is simi lar to those of 1884-5, 1907-8, and 1920-21. Because recovery took place after each of these crises, our finan ciers tell us that it will take place af ter this. But they are wrong—utterly and inexcusably wrong. Recovery has nev er taken place after any of these de pressions. The prevalent economic system of the world moves on with unabated progress toward its ulti mate collapse, as surely as the sun of day moves on toward the night. The crisis is perpetual. Inverted Values Man is an industrious animal. He has a tremendous capacity to work and store up for the future. But his wonk does not store up for him in his own control the things he needs. Mod ern industry only stores up wealth the control of which gravitates away from the many to the few. Industry is not addressed to the getting of things the people need, but, instead, to the getting of money which the people can not hold. And what they do hold cannot purchase the things they need. To add a profit to all the works of labor, which makes it impossible for the people to buy what they have produced, spells disaster. To place the 16 COOPERATION ownership and control of the ma chines and the credit in one class and impose the work and the need upon the mass of people is to win disorder. To make the getting of money and not of things the object of industry is to unbalance production and place the banker in the position to extort tribute and rule the world. ) And then as a necessary associate of the profit system goes its hand maiden, the political state. She is the world's conspicuous .strumpet, and must be housed in palaces, bowed to, played to with bands of music, sung, petted, flattered, and courted. And anybody who gets her disfavor goes to the lockup. The people are taxed to death to buy strings of war ships to decorate her voluptuous bosom and to pay the wages of her lackeys and attendants. ^ Another period of grinding out and piling up commodities which the peo ple cannot buy will follow this de pression. It will be called prosperity. But that is what it will not be. Ac cumulating the powder to blow one's self up is not prosperity. ^ And each downswing of depression brings us so much closer to the ulti mate collapse. As a result of the prof it business the world got the iniqui tous Treaty of Versailles and its hand maiden The League of Nations. This precious pair, now after a cost of $200,000,000,000 spent on the war to end war, present us with a world of more military equipment ready for war than existed before the world was made safe for democracy. And the preparation for war is proceeding pell mell on every side. The Necessary Economic Structure All of these are simple and obvious facts. They need to be recited because the people refuse to know about them. But there are 60,000,000 people or ganized in cooperative societies who are learning how to supply their needs through business conducted solely for service and not for profit. Their 200,000 cooperative societies are demonstrating that the people can supply their own needs and eliminate utterly the profit motive and the pay ment of tribute. These steadily grow ing societies, in forty countries, are showing that the political state is unnecessary. They impose no taxes on industry. They use land not for speculative purposes but only for housing and living and to produce the things the people need. The cooperative movement, in its practice and method, eliminates those causes which lie at the root of our waves of depression. Cooperation pro duces and distributes for a known clientele of consumers who own the machinery of production and distri bution, and not for purposes of profit- making, speculation, nor to serve the purposes of privilege-seeking classes. It demands the elimination of tariffs, passports, visas, armies, and navies, and all of the economic causes of hostility among men and nations, be cause it does not need them. These burdens, which are breaking the back of the world, cooperation eliminates along with the whole gamut of profit which is added to the cost of every thing before the consumer can con sume. The tremendous cost of ad vertising and smart salesmanship go also into the discard. What these cooperative societies are doing is not an Utopian dream. It is a demonstrable fact, all to be seen by those who have eyes to see. It is built in brick and stone, in mil lions of acres of land, in ships and commerce, and smiling homes. The Reader Writes IN ANSWER TO DILLONVALE Editor COOPERATION: Regarding the neutrality resolution dated Dillonvale, Ohio, October 14, 1930: 5 To the writer, this resolution seems to be more of a propaganda plea in favor of the Soviet political movement, than a plea for political neutrality within our cooperative activities. The premise of paragraphs one and two COOPERATION 17 seems to be well taken and timely. Paragraph three, the writer would amend to read as follows:— "We clearly understand that the policy of the editorial staff is: while as individuals outside of our cooperative organizations, con ventions and official organs, we may take is sue on all of these questions; collectively as a body, we shall not discuss or take a stand on any of them." Paragraphs four, five and six seem indel icate, somewhat misleadng and in violation of the spirit of paragraphs one, two and three. The writer would amend paragraphs seven and eight to read as follows: Whereas, the editors of our organ, CO OPERATION, advocate impartiality for all, therefore be it RESOLVED that we go on record to ask the seventh congress of The Cooperative League of America to instruct the editorial staff of our organ, COOPERATION, to live up to its policy of impartiality and strict neutrality in all matters regarding contro versial questions such as race, religion, creeds and politics, including the working-class political movement. It is true that the consumers cooperative movement is chiefly sponsored by the work ing class largely for economic reasons. It is also true that many of the leisured class are earnestly and efficiently endeavoring to promote the true "Cooperative Common wealth," largely for moral reasons. Our co operative movement needs their help and counsel also and should treat them as justly. J. B. RICHARDSON, Lakeside, Washington. The Dillonvale resolution is interesting. Aside from the manifestly un-neutral and incorrect statements in the first "Whereas" and in the "Resolved," there are certain implications in this resolution that need to be challenged. First comes the question of neutrality; second, the question of discussion. Of course cooperatives should not enter into political conflicts. It may be necessary for their members in preventing political action detrimental to the continuance and growth of the cooperatives, but this should be along non-partisan lines. Any other course is apt to invite disaster. And this applies with as much force to "workers' " governments as to "capitalists'" governments. One cannot forget the seizure of the co operatives in Russia by the Bolsheviks and the utterly disintegrating course forced upon them by the Bolshevik government. A some what similar course was pursued in Italy by the Fascist government, although this was accompanied by much and extreme violence. As a result, the cooperatives in both coun tries have abandoned the basic cooperative attitude of neutrality in politics, and have adopted an emphatic preference, putting it mildly, for adherence to the particular polit ical organization in power. Contrast this with the neutrality of the English, Scottish, Belgian, Danish, Swedish, Norwegian, German cooperative movements. But, of this, Dr. Warbasse is better able to write than I since he has come into quite close contact with the situation. •Now, would Dillonvale contend that it is the business of the Cooperative League to close the eyes of its editors from seeing and to stop their tongues from telling what they have seen? Is censorship an attribute of the cooperative spirit? Do we arrive at knowledge and understanding that way? Shall we, by withholding statements of actual conditions,, find ourselves in possession of facts upon which to base judgments? Dillonvale should distinguish between neu trality as between particular forms of polit ical organization and neutrality as between cooperative organization and political organ ization. Cooperative organization and political or ganization mix as readily as oil and water. Cooperative organization wants neither hos tility from nor close cooperation with polit ical organization whatever its complexion. It desires and asks that it be left undisturbed, untrammeled and free to pursue its own ex periment along its own lines. I read COOPERATION thoroughly. So far, I have seen nothing therein that a. cooperator should ask to be excluded. Some of it may have been objectionable to one politically minded, but such a one should remember that COOPERATION is a magazine of Co operation and not of politics, and therefore, it is not a breach of neutrality to consider how such and such political action effects cooperation. In fact, if cooperation is not to- degenerate, it must be kept free from ad herence to or alliance with political action except for purely defensive purposes. This: necessitates constant statements of facts' that show the delusion in the idea of the co operative commonwealth, a voluntary state of society, coming through political action, a state of compulsions. It seems to me that Dr. Warbasse is con stantly pointing out this difference between the cooperative attitude of mind and the 'Political attitude of mind, and the necessity for this work is quite apparent when one dwells upon the Dillonvale Resolution, jj U. G. MOORE. Seattle, Wash. The resolution from The New Cooperative Company of Dillonvale, Ohio, published in the December number of COOPERATION, 18 COOPERATION All true cooperators patronize THE NEW ERA LIFE ASSOCIATION (Established 1897) A strictly cooperative life insurance institution. Member of the Northern States Cooperative League. All standard forms of life insurance contracts written. Funeral Benefit and Disability insurance for only $1.00 a month! WE CAN INSURE YOU BY MAIL without medical examination! I ~~*~ -^—.-—.-— p-—. ___ _ For full particulars clip this coupon and mail it to: NEW BRA LIFE ASSOCIATION, Grand Rapids, Mich. Name: . Address: while intended to raise the question of neu trality, really raises the question of freedom of speech, or, I might more accurately say, the freedom of our cooperative press. t Like the brothers at Dillonvale, I have fol lowed the articles by Dr. Warbasse published under the heading "My Point of View," and while I have not always agreed with the opinions he has expressed there, I have been very glad to get his viewpoint, and have profited greatly by it. It is true that he has •made several references to the Soviet Union, but I have not observed that he has harped on that subject. Having no opportunity my self to visit Russia, I am very glad to get the opinion of a cooperator who has had op portunity to visit that interesting country. Because I believe in the adequacy of co operation as an economic remedy, because I favor solving economic problems by voluntary association rather than by politics and state- ism, I realize that I naturally would feel more kindly toward Dr. Warbasse's views of Russia than do the brothers at Dillonvale. However, the question raised by their resolu tion goes much deeper than whether we agree or disagree with Dr. Warbasse. It goes right to the fundamental issue of whether we are going to be tolerant enough to allow freedom of discussion of important questions vitally related to cooperation. With the brothers at Dillonvale I agree perfectly that the cooperative movement, as a movement, "should remain neutral on all such controversial questions as religion, creeds, and political movements, including the working class political movement." But I do not believe that this principle of neu trality, so vital to the success and perpetuity of the cooperative movement, precludes free and open discussion in our magazine of such questions as the relation of the state to vol untary1 cooperation. Surely discussion of this ikind does not commit The Cooperative League to any course. Nor do I believe that the brothers at Dil lonvale, once they have thought the matter over in this light, will want to say that they would deny the president of The Cooperative League the riglil to express opinions on such matters. Instead of wanting such discussion shut off, we should all welcome it. It is only from the freest discussion of cooperation and vitally related matters that we shall arrive at the truth. Let us remember that freedom of speech and freedom of the press are the most pre cious things we can have. Thomas Jefferson said (I am not quoting him verbatim) that we need not fear error so long as truth is left free to combat it. Shall we not be very careful, therefore, about trying to shackle what we think is error lest we also shackle truth? L. S. HERRON. Omaha, Neb. COOPERATION 4- 19 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 Profit System, to tabor, to Agriculture and to the Arts and Sciences The Macmillan Co., New York, Publishers Order from The Cooperative League, 167 West 12th St., New York, U. S. A. Price, $1.50. The Cooperative Union, Holyoake House Hanover St., Manchester, England. Price 6 sh. German Edition: Verlagsgesell- schaft deutscher Konsumvereine, Stroh- hause 38, Hamburg, Germany. Price, 6 marks. i ANNUAL LIFE INCOME SOME MEMBERS RECEIVE 40% ANNUAL DIVIDEND ON MONEY PAID IN Are you interested in increasing your an nual income against old age? All mem bers of the family eligible from baby to grandparents. Small Annual Dues Wri'x for Circular of Plan BROTHERHOOD OF THE COMMONWEALTH (Under "Benevolent Orders Law" of the State of New York) 10 Gold Street NEW YORK CITY ! STUDY COOPERATION AT HOME Correspondence Courses prepared and conducted 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 12th 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 Co operative 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 50c a year. COOPERATIVE CENTRAL EXCHANGE Superior, Wis. COOPERATION, 167 West 12th Street, New York. Please send COOPERATION for one year to $1.00 a year A'c'me__. Address. 40 COOPERATION PUBLICATIONS —OF— THE COOPERATIVE LEAGUE HISTORICAL B9. 64. Per CopvPer 100 Story of Cooperation ..........$ .10 $6.00 British Cooperative Movement.. .05 4.00 Consumers Cooperation in the United States (illus,), 1930.... .10 8.00 Cooperative Movement In Europe .05 4.00 Progress of Cooperation in United States ....................... .05 4.00 Story of Toad Lane (By Stuart Chase) ...................... .OB 4.00 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 .05 2.50 8. Cooperative Education. Duties of Educational Committee Defined .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 ........................ .10 16. How to Organize a District Coop erative League .............. .10 29. Credit Union Primer (By Ham and Robinson) .............. .50 43. Cooperative Housing ............ .10 } 51. Model Lease for Cooperative I Apartment House ............ .10 I MISCELLANEOUS ' 16. Model Co-op State Law ........ '.10 46. Producers' Cooperative Industries .10 11. Control of Industry by the People through the Co-op Movement .10 12. Credit Union and Cooperative Store ........................ .OB 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 66. International Directory of Coop erative Marketing (By Benson T. Landis) .................. .25 42. Cooperative 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 Differs from Ordinary Business .02 .85 62. Buttons (League emblem), % inch diameter ............... .05 2.00 63. Sign or Transparency of League t Emblem. Green and gold, 3 in. diameter .................... .25 15.00 67. Stock certificates, engraved, with League Emblem. Bound in books of 100, 200, or 250 63. To Mothers ................... .02 . 1.00 70. Farmers Marketing and Consum ers Cooperation; An address by J. P. Warbasse .......... .10 71. International Cooperation: An ad dress by H. J. May ......... .10 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 Cooperate!; (28) Do You Know About Cooperation in Europe?: (40) Have You a Committee on Education ana Recreation?; (45) Schools and Stores. MONTHLY PUBLICATIONS Cooperation—(In bundle lots, $7.50 per hundred). Subscription, per year (foreign, $1.25).... $1.00 REVIEW OF INTERNATIONAL COOPERATION (Pub. by the I. C. A.) ........ Per Year, $1.50 $1.65 if paid by check. BOOKS The following books are recommended as con taining the best discussion of the model i Coopera tive Movement. They may be ordered through The League: Blanc, Elsie T.: Cooperative Movement in Russia ............................... $2.50 Brightwill, L. R.: Animal "Co-op" Book— For Children ........................ -15 Chase and Schlink: Your Money's Worth, A Book for Consumers ............... 2.00 Flanagan, J. A.: Wholesale Cooperation in Scotland, 1920 .......................... 2.00 Gide, C.: Consumers' Cooperative Societies, American edition and notes, 1922. Cloth 2.00 Hall, Prof. Fred: Handbook for Members of Cooperative Committees .............. 2.00 Harris, Emerson P.: Cooperation, The Hope of the'Consumer, 1918. Paper bound.... .60 Holyoake: Rochdale Pioneers ............ 1.00 Indian Cooperation, Children's story ...... .15 Jessness, O. B.: Cooperative Marketing of Farm Products ........................ 3.00 Kayden, E. M., and Antsiferov, A. N.: Cooperative Movement in Russia During the War ............................. 4.00 Madams, J. P.: The Story Retold ........ .75 Mears and Tobriner: Principles and Prac tices of Cooperative Marketing ....... 3.20 Nicholson, Isa: Our Story ................ .25 Oerne, Andres: Cooperative Ideals and Problems ............................. 1-25 Owen, Robert: Autobiography ............ .50 Poisson, E.: The Cooperative Republic.... 1.75 Potter, B.: Cooperative Movement in Great Britain ............................... 1.00 Redfern, Percy: The Story of the C. W. S. 2.00 Redfern, Percy: The Consumers' Place in Society, 1920 .......................... 1.00 Smith-Gordon & Staples: Rural Recon struction in Ireland, 1918 ............ 1.00 Smith-Gordon and O'Brien: Cooperation in Denmark ............................. 1.00 Smith-Gordon and O'Brien: Cooperation in Many Lands. 1920 .................... 1.50 Stolinsky, A.: The Cooperative Movement. (In Yiddish) ......................... 1.00 Warbasse, J. P.: Cooperative Democracy, (1927J) ............................... 1.50 Warbasse, J. P.: What Is Cooperation, 1927 .75 Warne, C. E.: Consumers' Cooperative Move ment in Illinois ...................... 3.50 Webb, B. and S.: The Consumers' Coopera tive Movement, 1921 .................. 6.00 Webb, Catherine: Industrial Cooperation, 1917 .................................. 1-60 Cooperation, Bound Volumes, 1916 to 1930 inclusive, each ....................... 1.25 Report of the American Cooperative Con gresses, 1920, 1922, 1924, 1926, 1928, each 1.00 Northern States Year Book, 1928. Paper.. .60 The People's Year Book, 1931, Cloth, $1.25; paper bound ......................... .75 Year Book of The Cooperative League, 1930. Cloth, $1.50; paper bound ............ 1-00 (Ten cents postage should be added for all boohs.) (0076 RATION A magazine to spread the knowledge of the Cooperative Movement, where by the people, in voluntary associa tion, produce and distribute for their own use the things they need. Published monthly lyy THE COOPERATIVE LEAGUE OF THE U. S. A. 167 West 12th Street, New York City CEDRIC LONG, Editor Entered as Second Class matter, December 19, 1917, at the Post Office at New York, N. T., under the Act of March S, 1879. Price $1.00 a year. VOL. XVII, No. 2 FEBRUARY, 1931 10 CENTS New York's Latest Cooperative Houses A Proposal for a Cooperative College Cooperative Prices Win Over Those of Chains Shall Cooperative Employees be Dismissed in Slack Times? An Editorial My Point of View: Cooperation and Politics 22 COOPERATION Amalgamated Dwellings Last November the newest of the cooperative housing colonies opened in New York on the congested lower east side of the city, long considered one of the most deplorable slum areas .to. be found anywhere in the United. States. This is a group of buildings 'having 231 apartments built on four streets around a whole square in which is located the central garden with its fountain, flowers, shrubs and grass plots. This garden: is 12,000 square feet in area and oc cupies 50% of the entire piece of land on which the buildings are, situated. The houses are six-story modern structures with elevator service, elec tric refrigeration, incinerator chutes and all the moist up-to-date con veniences, so that the workers who move out of the old slum dwellings into the new cooperative are making the extreme transition from the very lowest type of living conditions to the highest. Apartments are of 3, 4 or 5 rooms and the equipment put into the buildings is of the best since the construction is for the benefit of cooperative owners and not for resale at a profit, the dominating motive behind the construction of most pri vately built apartment's in all of our large cities. There is an ample roof garden, a baby carriage garage for 300 carriages, an auditorium with seating capacity of 300. On the Grand -Street side there are stores, most of them rented to private merchants, but all the rest of the building is used strictly, for cooperative dwelling and cooperative activities. From the very day the first tenant moved in there has been cooperative distribution of milk and a cooperative laundry serv ice. This newest cooperative was built at a total cost of $1,500,000 under the State Housing Law. Tax exemption is granted for a period of many years on the understanding that the rents will average less than $12.50 month ly per room. The actual average in this building is $12.18. Each member subscribes for stock to the value of $500 per room, paying down $150 in cash and the balance over a period of several years. The difference be tween $150 and $500 represents a sum of several hundred thousand dollars 'loaned to the association by Lieu tenant Governor Lehman of the State and Aaron Rabinowitz, a mem ber of the State Housing -Board, both ardent champions of low priced apartments for people in the city of New York. The rules of the association are strictly cooperative and members can neither sell nor sublet at a profit nor without the permission of the direc tors. The property as a whole can not be sold by the tenants' associa tion except batik to the State itself or to the Amalgamated Clothing Work ers Union which retained the right to purchase at book value. Plans are already under way for extensive educational activities mod elled after those in practice at the uptown Amalgamated Cooperative Apartments. To mention all the names of the various men and women who took a leading part in building this coopera tive organization would take too much space here. A. E. Kazan who is a mem ber of the Board of Directors of both the Eastern States League and the Eastern Cooperative Wholesale was in charge of the whole enterprise and directly under him A. Greenstein who took charge of the interviewing of prospective members and running the local office and carrying on all the local organizing activities. COOPERATION 23 Editorial SHALL EMPLOYEES BE DIS MISSED IN SLACK TIMES? In an article appearing recently in the German Cooperative Press, Voll- rath Klepzig raises the problem of how to handle employment when business falls off. He places before the employees the three alternatives which are: first, dismissal of work ers; second, reduction in wages; third, introduction of part time work. He states that although it violates the desires of cooperators to treat em ployees in the brutal manner they are accustomed to under capitalist business, still it is even a more serious breach of cooperative principle to im pose unbearable burdens upon the consumer shareholders by retaining employees in well paid jobs wihile many of the members themselves are unemployed. He urges ;that consumers societies maintain themselves as models of efficient collective business enterprises and not permit them selves to be surpassed by private-prof it making concerns. In response to this article a prominent labor union ist appeals to.all cooperative employ ees to go on strike rather than to ac cept dismissal or wage cuts. Mr. Klepzig retorts with a demand that employees be paid for work actually done in the shop and not for their mere presence as idle onlookers. This same dilemima is facing the board of directors of every society in the world when depression comes to the local community. The usual solu tion is the temporary or permanent dismissal of some of the unneeded help. Less frequently an agreement is effected whereby all employees un dertake to have their wages cut for full time work or to go on part time with a corresponding reduction ofl wages. Very rarely we find an in stance of the society which continues to maintain its full working staff at full time pay regardless of a decrease in revenue. The first of these methods is re pugnant to most genuine cooperators; they do not care to assume responsi bility for throwing employees of the society on the streets, already too full of unemployed workers. The third is equally repugnant to anyone who ap preciates the difficulty of competing with private business. Is not the ultimate solution to be found in some scheme whereby all employees agree to a pro rata reduction in their wages when sales decline? iSuch a plan will .meet the approval of the membership, for many of these members are themselves suffering from the depressed economic condi tions. It should meet with the ap proval of the directors and manage ment who are responsible for a proper administration of the busi ness. The justice of the plan should appeal to the employees themselves if they have ait heart the interest not only of their fellow workers alone, but also of the whole organization. Whether they go on part time or give their full time to the services of the organization during this slack period is a matter to be decided in each so ciety. The truly militant group of cooperative employees will probably decide in favor of full time work for less than full time pay, the hours not needed in the business to be devoted to extraordinary effort to enlist new members, win new customers, reno vate the premises and generally build up the cooperative organization. C. L. CIVILIZATION Millions starve in China because there is not enough food. Other millions are scarcely a twenty-four hour jump ahead of starvation in the United States and Canada because there is too much food. Shipping companies languish because there are no cargoes. The surplus food which is bankrupting the impoverished farmers of America might be packed off to the starving peasants of China. All the countries concerned would reap un told benefits from such a logical form of farm relief. But do any of the political or economic leaders of capitalist America propose such a reasonable remedy? 24 COOPERATION Proposal for a Cooperative College By GEORGE HALONEN During the past few years, con sumers cooperation in tine United States has been crystallized into a real organized movement. The Coop erative League has over 120,000 mem bers. With the growth of the movement new problems are to be faced. One of these problems is the education of cooiperaitive employees. Pioneer work in this field has been done by the Cooperative Central Exchange of Su perior, the Northern States Coopera tive League, and the Eastern States Cooperative League. Short-term courses have been arranged by these organizations. Altogether 16 train ing schools, with 463 students in at tendance, have been held. However, the requirements of the movement are becoming greater and greater. Cooperative managers and other employees are needed. A train ing school of a few weeks' duration cannot prepare managers and clerks who, in addition to technical knowl- edge, are Imbued with the coopera tive spirit. Experience from our train ing schools proves conclusively, that only the surface of cooperative knowledge can be scratched. Tech nical as well as theoretical and his torical subjects imust be rushed through. Private business has its universities and colleges. Young men and women are taught for years how to serve the profit interests at the expense of the working people. A profit system would not fuss with schooling of this kind if it would not pay. And it pays. Over a hundred thousand coopera- tors constitute a force capable of fur nishing its own functionaries. Our training schools have blazed the way. Now a regular Cooperative College can become a reality. Tentative Budget for the College Most of the training schools have been conducted in the Northern States Cooperative League district. Most of the active societies are in this, district. Therefore, it is practical to start the Cooperative College in this district. But let us also loolk into the possibilities of a Cooperative Col lege from a financial standpoint. At Smithville, near Duluth, Minn., there is a Labor College, originally a Finnish Workers College, but now also conducting classes in English. This college is large enough to house a cooperative class of some 30 stu dents. Room and board for the stu dents cost $28.87 a month. If we as sume our Cooperative College to be of eight months' duration, that would mean an expense of $230.96 to each student for the complete term. For thirty students, the total would be $6,928.80. This sum would take care of everything but the teaching. Teachers' salaries would be around $4,000. Thus with about $11,000 an eight months' Cooperative College with thirty students would be made financially possible. Can This Be Done? We believe that the consumers cooperative movement in the United States is strong enough to put through a plan like this. But where to get the money? Students at universities and busi ness colleges are paying tuition fees in addition to their room and board. The cooperative movement would like to give education free. However, under the present circumstances this is not possible. Thus the Cooperative College could charge for room and board plus tuition fee, a total sum of $250 for each student for an eight- month term. For thirty students that would make $7,500. In order to help the students, co-op erative societies could give scholar ships. Also, a loan fund could be established. Students would be able COOPERATION 25 to borrow from this fund and pay back in installments. But what about the $3,500 deficit on this tentative budget? Naturally, by increasing the student fee, this could be covered. However, our move ment would also be benefited by the college. And we feel confident that the cooperative societies will take care of their part of the expenses. The present training schools cost around a thousand dollars for each session. If the whole movement gets behind the regular college, a college fund will be easily raised. Cooperative College in the Fall of 1931 A Cooperative College to be opened in the fall of 1931 is a possibility. It requires only a little pushing on the part of cooperators. Naturally the place for the college can be finally determined by the Board of Directors of The Cooperative League. If Du- luth-Smithville is considered by the majority not to be the most con venient place, let's find a more suita ble place. This place is mentioned here as just one concrete proposition. So let's OK the idea of the Cooper ative College! Let's open the College next fall! News and Comment ANNUAL FOR NEBRASKA FARMERS' UNION The farmers of Nebraska, organized in the Farmers Cooperative and Edu cational Union which is considered by many to be the most progressive state-wide farmers' association in the United States, provided the 736 dele gates and visitors at the three-day convention in Omaha several thrills and a great deal of encouragement. Opposition to the Federal Farm Board was this year more marked than ever, and the newly elected Executive Board is more thoroughly cooperative than the old. President Keeney was reeleeted. L. S. Herron was given a vote of thanks for his excellent report as editor of the Nebraska Union Farmer which again increased the number of both readers and contrib utors to its columns; although at an other session some of his enemies got through a resolution condemning his too free "throwing of bricks." Resolu tions were passed in favor of more militant action in behalf of consum ers cooperation and a cooperative training school (see report in CO OPERATION for March). The insurance company belonging to the members had 300 delegates present to hear and discuss Manager Millington's report, which showed an increase of 10% in membership and insurance in force; 33% of the Farm ers' Union members are now in the Insurance Company. Costs are 50% less than rates through the old line companies. The company Was 329 of its own farmer members licensed to act as agents. The organization of an auto insurance company on a legal reserve, rather than on an assess ment basis was unanimously author ized. The meeting of the .State Exchange is reported on page 26. The Coopera tive Oil Association delegates were told of a large increase in the volume of oil handled and new stations or ganized. A resolution authorizing a cooperatively owned plant for com pounding of lubricating oil and grease was defeated, although another res olution demanding 100% support from local managers and authorizing the board to discharge non-cooper ating managers was overwhelmingly approved! There were several other meetings, such as those of the Ele vator Federation, the creameries, and the Livestock Commission Company. COOPERATION STATE EXCHANGE ZOOMS The Farmers Union State Ex change of Omaha, Neb., has closed another year with an increase in sales, and a net profit, or saving. This completes seven years with an un broken record of a net saving in every quarter. Sales in the year 1930 to talled $2,118,211.83, compared with $2,001,725.16 in 1929, a gain of $116,- 486.67. The net saving for 1930 was $57,947.88, an increase of $7,364.48 over the preceding year. This net savings figure does not include $12,- 901.87 to be refunded to the Farmers Union State Oil Association, for which the State Exchange is the purchasing agent. After setting aside reserves, 5% of the net savings to surplus, and allowing 6% interest on share capital, the balance available for patronage dividends is $31,240.58. The Nebraska Exchange operates 11 branch stores, from which the sales in 1930, not included in the above to tal, amounted to over $630,000.00. Current assets are now $328,300 while current liabilities are only $78,828. All of which makes Nebraska Co- operators glad; they feel that their staunch adherence to the principle of local autonomy, rather than Farm Board supervision for their coopera tive .movement, has been vindicated. Manager McCarthy reported to the annual meeting on January 12th that gasoline handled during the year came to the new high total of 1551 carloads. Visitors who addressed the delegates were Cedric Long of The Cooperative League, George Halonen of Cooperative Central Exchange and George Jacobson of Midland Cooper ative Oil Association. The Farmers Union Exchange is peculiarly strong in some respects and equally weak in others. Instead of having a clear-cut policy of only co operative stores for shareholders, it has stores, local branches of the State Union, fraternal organization, and in dividuals, totalling in all more than 6300. It has retail branches directly owned and controlled by the Whole sale as straight chain stores over which the local customers have no authority whatever, except as they are members-at-large in the Ex change. The Exchange sells to pri vately owned stores or oil stations as well as to cooperatives, though the former get no rebates. It is the only consumers cooperative wholesale in the country which is not affiliated with the organized movement as represented by The League. On the other hand, this cooperative is an in tegral and loyal part of the strong and militant Cooperative and Educational Union of Nebraska. Its .manager and most of its directors are convinced cooperators. It limits interest on its capital stock to 6% although 8% is permitted by the law of Nebraska. It is rigorously putting into force its newly adopted policy of granting to non-member patrons rebates to be credited to the purchase of share capital and at the same time buying up the shares of inactive or non-pur chasing members—thus constantly eliminating "dead" members and fill- Ing the vacancies with live ones. It has taken out a group sick and acci dent policy with the New Era Life As sociation for all its employees. Its ad ministrative practices and office rou tine seem ,to be highly efficient and its business is larger than that of any other cooperative on the continent dealing in consumers' goods, except ing only the Franklin Cooperative Creamery Association of Minneapolis. COOPERATIVE ASSISTS UN EMPLOYED The Cooperative Trading Company of Waukegan, 111., has provided spe cial assistance to such of its members and customers as are unemployed. At a meeting held late in 1930, the em ployees unanimously agreed that for the next five months one day's wages per month from each worker is to be set aside as a relief fund for unem ployed cooperators. This would amount to about $425 a month. Mean while the firms who supply the co- COOPERATION 27 operative with milk have been ap pealed to and agreed to donate one per cent of their monthly milk re ceipts to the same fund, which will bring another $130, Additional con tributions are being made by indi vidual members and friends. In addition to this assistance the Trading Company itself by action of its Board of Directors is contributing 3000 quarts of milk free during the winter to families in need through out the city. It is explicitly stated by the Co operative that this action is not char ity but an extension of the coopera tive to include not only the distribu tion of the necessities of life to those who can pay for them, but to promote mutual aid to the cooperative family whenever and in whatever form such aid is necessary. COOPERATIVE PRICES WIN CONTEST The students of the Eastern States Cooperative League Training Cours es, held three times a week for the past twelve weeks in Brooklyn, have recently completed an interesting study of comparative prices in the stores of the neighborhood. Two chain stores, two private stores and the main store of the Cooperative Trading Association were the ones investigated. Officers of the school vouch for the impartiality of the study for they maintain that half of the committee of ten investigators are politically aligned with the party hostile to the Trading Association. Seventeen items were selected for buying from all five stores—items of common use by the housewives. A comparison was first made of the total bill for the 17 items, with the following result: Store Number 17 Items cost Co-op price Co-op savings. Chain No. 1 $4.21 4.12 .09 Ind. No. 2 $4.36 4.12 .24 Ind. No. 3 $4.21 4.12 .09 Chain No. 4 $4.36 4.12 .24 Co-op No-. 5 $4.12 Each item purchased at each store was then appraised for its quality value as compared to similar item purchased at the cooperative, and price adjustment made accordingly. Following is the list of items with weighted valu