The source of this uncorrected OCR text may be viewed in the DjVu format at: http://fax.libs.uga.edu/HD2951xC776/co25 or http://purl.galileo.usg.edu/ugafax/HD2951xC776/co25 CO-OPERATION PUBLISHED MONTHLY by The Co-operative League of U. S. A. VOLUME XI January — December 1 925 CO-OPERATIVE LEAGUE OF U. S. A. 167 West 12th Street, New York City 1925 INDEX A. and P. Stores Make Money, Do?________ A. F. of L. Adopting Marxism, Is the?________ Adamston, W. Va. Co-operative.._________ Anarchist on "Why Co-operation Is Not Enough" Animals, Co-operative Book ____.____.__...— Arkansas, Banking Practice In__.______...... Auditing Bureau ______________.___.... " Committee Report _________........ Audit, Start the Neve Year with a Co-operative...... Australia's Marketing Act _________._......_. Austria, Co-operation Mixed with Politics, in__... Automobile Insurance (Co-operative) ......__.__.._ __....... 145 .................. 206 ....._.... 75 47 ................. 97 25 ...15, 38, 57 52 15 185 69 ....... 133 B Bakery, Co-operative ......____...._.............._.........._.................................................62, 73, 132, 141, 143, 152, 153 Baking of the Daily Loaf__________.__.____________...._______________ 142 Balch, Emily Greene________....__.__....._......_......____._________.__._____ 208 Baldwin, Roger N. __________.______..____________...______________ 168 Bank, Co-operative Savings__.__________.____.____...........__._._....________._ 93 Banking, Legislation, Co-operative____._____._____.__________.___.._____24, 25 Banking Laws, Co-operative _____._____.___._._______________._______ 144 Banking, Thoughts on ______.____._____________.__________________ 27 Banks, Co-operative, How to Incorporate_______.__________......____________ 26 Barnacles on Ship of State.__._______________________________________ 125 Base Ingratitude __...__.___.__.__......__.____._____.________,__....._.____ 113 Bauer, Herr, of Munich, visits N. Y.________________________________......_ 114 Beardstown, 111. ____________._._____......_._......_......________.________._ 113 Bedford Barrow Co-operative Apartments__.__.........._____._______.________.__ 3 Beers, Lorna Doone ______.________._____._._______.___...______..... __ 236 Belgium, Medical Co-operation, in.....______________________________._____ 106 Bergengren, Roy F. _.__________.__._...-_____......_...........__ _____________ 162 Birth Control, Menace of___________.______.___.________________.__...... 125 Blairsville, Pa. __._..................._........._...........__...................................____......_........______..___...... 154 Book Reviews ________.........__....__.._..__...................................___......97, 117, 137, 196, 216, 235 Bread Costs, What________........____________............__.............___.__.__.__.____ 138 British Canadian Co-operative Society ______.___.__._____._____......______81, 82 " Co-operative Bakeries ____________________._____.__..........._____.._ 132 " Co-operative Movement Gains ______________......__._.__._......___...._... 211 " Labor Movement ___________.___________.....___.________._____...... 131 Brockton, Co-operative Bakery ________._._______......__________________ 73 Brookhart, S. W. ________________...__..__.__.___.____._____.________. 24 Brotherhood of the Commonwealth_________________......_......_____.___......___ 212 Browder, Earl L. ____.__________.________....__.__.__________._____ 90 Butcher Shop Operation __________________________________.__._._.__ 95 Cafeterias, Co-operative ____._______ Cal and the Farmers_.__._____.____. Can Labor Get All the Profits and Win_____ Can We End Economic Warfare....._.____.. Canada, Co-operative Medical Service, in... JAN 17'48 Canadian Co-operative Society, Nova Scotia_____ Capitalist Attitude Toward Co-operation..... Capitalist Versus Co-operative Dividends_. Capitalists Out-maneuver Workers ____.... Carver, T. N. ______..__.____...................... Central Exchange, Superior, Wis. ___.__ " Bakery .......... Schools _______ Central States Co-operative Wholesale... Cherry Valley, Pa. _.._____ .........____33, 116 .....________ 141 ........__.._.......... 156 .............................36, 115 ........153, 194 INDEX Christmas Gifts, Distribute to Your Patrons..........___.________.............__.______...._-- 237 City Co-operative Dairy, Cleveland_......_..__..._________________.___....__-__-__ 34 Cleveland City Co-operative Dairy_____.___________...____.__...____..........—. 34 Classes, Two Developing __._.___....._.........._....__.____...._......_ _......__....._.............._ 223 Cloquet, Minn. ....................——........._...._.............-..............——....—......—__....................._...........................................93, 195 Coal, Co-operative Co., Pittsfield, Mass______.._______._________________•___- 134 Commonwealth Mutual Savings Bank......_______._._.__....____—.-_-—__-—__ 93 Communist on "Why Co-operation Is Not Enough"-...._____________________-__ 90 Competition in This Machine Age__._......__......._______ ._._____ __..____———— 96 Compulsory Co-operation _____........___......__._...._____—____•__......... ___............ 185 " Patronage ____________.__.___________._.__.__.._—— 137 Conference of Illinois Societies ....____._.....__......_____............._.......— —.......— ——.————36, 173 " in Minn. ...................................................__....._____.................—........__..__.......__..............96, 155 Consumers Co-operative Movement in Illinois____________.______-.—_....—.—....148, 170 " Co-operative Services _...._.............._......__......—.......__....__....—.....92, 173, 201, 202, 236 Co-operating to Exploit the Consumer........—.—...........__....__..__._...___...—.........__.............—— 166 Co-operation and the Working Class___.___.__.___-_________—__————— 165 " Recommended to Congress _....____.._-___._ -___________-__•••••- 13 " Wins Another Round ......._._.__.__...__.__———.-.........—....________........_.- 192 Co-operative and Taxation of Land Values......_______________..__...——_—————— 231 " Automobile Insurance _......__......________......_______———..—.————— 232 " Banking _____...__............__..__.._____.____—_____... __.--.—___24, 31 " Buys a City __________....____.....____.__.__.....__..________— 35 " Brands of Groceries .______._____—__._..—._____-__-_.___.__-_ 233 " City ________._ __....__.__________._____.____________ 35 " Education and State Aid__._..............._.....__...__.—...-..___.........—.......__.................. 12 Housing __..___._......_—............__...._.___._——____.....___.......46, 64, 117 Principle Being Recognized by the Government_._________________.- 166 Principle Opposed __.__....___...___._____._.___.____-___-__•-— 84 Restaurants _......___._____......___. ____.___.____-_____-__ 201 Tea, Coffee and Publicity............__.____..........__...........—.............——.....__.......................... 115 Training School ............__.........._____......____...___32, 102, 156, 175, 221, 222, 233 Co-operator on "Why Co-operation Is Enough"._____._____________________—— 226 Co-operators' Day _____.__________...__._-__________•_______-____-____96, 111 Corporations, Do Large, Govern this Country ?____________.-_____._____.... ——- 67 Correspondence File ________._____._______________.__.___<__98, 217, 237 Credit at Cost for the People_____________.______________..._.__..............——.—— 13 Unions ______ ____________—_._________.__-_162, 213 Union and Co-operative Business____—________......__.______..__... ___.... 3 " Extension Bureau __._.__........._____.._____..............__._........._____..13, 162 " of Houston Texas _.______.___.____.___________.____.__ 134 " Progress ............__._______......______.________._____________ 193 Union, West End, Boston ___....____..........._............__..............____...... ____..........161, 162 Customer Owners ...-....-.......................-...--.-..-.-..........--.^^ 45 D Delivery Costs ..............___...........__..__...__..........................._____................___..________....__........ 195 Dennison, Ohio _______.._ ____. .__———————————>-.—.....—•—————————•———•— 154 Development of Co-operative League ____......___..___________._-__-_____...._ 17 " of Farmers' Business Organizations__.__ _._____.......__—__..—..__...... 118 Dillonvale, Ohio (Banking) ________...._ __.——— — ———.—————— —————————• 27 District Leagues ............___.......__..____......._______...-.-36, 72, 76, 96, 116, 155, 174, 214, 233 Director's Page __...__.....__...........___......._,..—..__.—...15, 38, 57, 95, 115, 135, 195, 215, 234 Dudley Diamond, The........................_............................____..-.....................__....__..........................____.....__ 105 Dunn, Fred _______.__—-___•____•____—______•_____•_•__• 117 Eastern States Co-operative League __.........______._____...____._....._______—.72, 214 11 u Farmers Exchange __.______._....___._._..______..........._.__.__...__ 133 Economic Warfare, Can We End This......_.__..________._______. —______—— 23 Educational Program ......__________.__________.___.___.__..._......__.——— 197 Electricity, Capture of...____________....—,-.__......____.........._______................__.__... 112 Electrification of Czecho-Slovakia __.____......____._____...__..—________—— 152 Employee, Do You Need a Co-operative....____........__.__..__......______.__—__— — 135 Employees' Association at S. S. Marie_.__..... ___.___....______.._...______———— 14 English Co-operative Tea in the U. S..._.....__.....___.._....................__.........._....._,_.............——— 115 INDEX PAGE Fable, A _____.________.__.___............—.._______.__ __ ______....____ 229 Failures, Causes of ______......._________._.__.__..____........______...... 56 Fake Co-operative, One More Gone_________..__..__.__..__..__..__._..._.__._. 232 Fancy Housing Schemes _____________.____.__.____. ___ _. 46 Farmer Must Finance Himself.......___......__.__.__._.__._......__.___.____.________ 172 Farmers Are Consumers, Where_.____._ ___ ____....._..... __._........ _._._____ 210 " As Consumers ______._..______._.__.________.__._____________ 133 " Co-operate to Exploit the Consumer, Do ?________..___.____________ 228 Farmers' Co-operation _____.—....____._._.__..____.__._...... .__.......... ___ 4 " Co-operative Exchange ._______________.____.________44, 122, 133, 173 Farmers, Drifting Along with the.___.___._.____......_._.....__.____..__._.....__ 66 Farmers in Nebraska —. _.____.__._._.._.__._.____.________44, 91, 98, 122, 173 " Mutual Life Insurance in U. S.___.________._.___...._._____......___._... 196 " Union Co-operative Ass'n, Clarkson, Neb..__.__________.__._.____.___ 121 Farmington, 111. .________.__._____________._.__.___ ...........__,__._____..... 182 Federal Trade Commission on Co-operation____.__.__.__......____________.___ 11 Financial Report of The Co-operative League......__......._......._..............._..__...18, 52, 77, 177, 238 Finland, Co-operative Progress in________._......_.............____...........__.____... ......____6, 191 Finnish Co-operative Trading Ass'n. ____________........__.......__...________._62, 194 " Co-operation in Central Exchange......_.__.____.__._.........____............_......___..__ 116 " K. K. and Communism_.____________.______________________ 58 Fitchburg, Mass. Co-operative______._____......_.__._______._____________ 94 Forward from the Land._______.__......__.._______________________....__. 126 Franklin Creamery ____________.__._._______._._______.__._________ 42 " " Educational Committee .....—...__.____.___..______________14, 156 Free Acres, N. J.__..................__.___._______......____.__..____.________.____ 188 Furniture Insurance, Co-operative....__._......._.....______......_....._______.__________ 152 Furniture, Co-operative, on the Installment Plan......__.__________._.__.___......__ 111 Furnishings and Hardware, Book Review..___..........___._._____.__.__________ 23 5 Future, Do You Buy on?______......_.._______._..__._____________.__,____ 234 G Garage, Co-operative _.______.__.__......__.___.________......_.....__.______ 65 Gardner, Mass. __________________________.__._____..___.________ 154 German Co-operative Movement________._______.._______...........______.___.... 114 Ghent Congress __________......._........________.._____.......____________.17, 118 Goss, A. S. ......__________._____ __________._____________________ 4 Government Aid Resented ____.____....______.________________________ 23 " Ownership or What?.....______________.__.__.____.___.________ 104 Grange Marketing Plan______._________.____________._________._._ 5 Greystone, R. I. ____________.__....._..._______._.__.__..________,____ 152 Groceries, Co-operative Brands of__._________.___._.__________________ 233 H Hall, Bolton _______________.__._......_____.___.___________________ 188 Hamburg Co-operative Society_._.__.._._______.__._......______........__._____ 134 Health Service at Franklin Creamery.......—...__....____.___...________.....__._......____ 42 Heating and Lighting the Store___.__.________._._..._.__....___.______..__ 215 Herron, L. S. _____________________.__.______.. ......_ 91 Hillsboro, 111. _________..._________________......................................_.__.________ 153 Hoan, Daniel W. _________.__._______ _________, ______________ 68 Hogue, Jas. E. ________________._______ __ ______ ______ 25 Home Educational Meetings in Minneapolis_______.____._......_______________ 156 Homes and Children First.______._____._______________ _ __,_____............. 22 Housing, Co-operative _.___._..................________.__..............._____3, 46, 64, 117, 194, 213 Hudson Guild Store......__.....____._____......__.__________.__._.____._____ 75 Hungary, Co-operative Movement in___...___________....__.____.________98, 128 INDEX India, Co-operative Education in... Indian Orchard, Mass. __.___ Industry for Service_________ Ingalls, R. ____.___............ Illinois Co-operative Movement______ Insurance, Automobile Co-operative ... " Co-operative, in Sweden _ International Co-operative Alliance 30th Anniversary... Wholesale Society......... " Co-operators' Day _______._. " Summer School ______________ Intoxicants, Non Profit Sale of__.___.__-__ Italy, Co-operation in____......__._....._.__... PACE .... 197 ................................................... 94 ".__..«__.__.„"__-._ 26 ...36, 148, 170, 173, 174 ..........__.. 133 ...__.__.____.... 190 ...__ 190 230 ......................96, 111 ____112, 231 ............................ 225 ..__.....__ 86 INDEX N Names of Co-operative Workers in League Office............... National Co-operative Wholesale Federation....__............. Nebraska Farmers Stand Fast.......__._____....... Neligh, Nebraska Farmers' Co-operative Store New Year, The __........__............................................................................. Northern States Co-operative League...._____ Norway, Co-operation Gaining in_...._____ Norwood, Mass. .______________ PACK .__......._....... _... _..__ 135 ___.....__....__............ 9 .........__....__....... 44 __.............___......___....... 1 ...37, 76, 77, 102, 156, 222, 233 _______._...__......___ 211 _.73, 133, 194 O One More Fake Co-operative Gone.__ Operating Expenses in Grocery Stores..... Operation of Butcher Shops___.__..... 232 196 95 Japanese Co-operative Movement ____. Jewish Workers Bakery of Springfield _ " Worcester ___ Karolyi, Michael . Kelly, Harry ___ Killing Miners ..... K ..114, 230 ............. 35 .. 153 ._.... 128 47 ............. 66 Labor Get All the Profits and Win? Can. " Unions __.__ ..........______.._... Land Co-operation _____ 2 2 188 Landis, Benson Y. .........................................._...._........................__....____..........__...____-____.........137, 1S7 Lay of Our Co-operative Cafeteria (Poem)__......__.__.__.____..................——..................———— 93 League, Development of .....___......______——————————————••••—————•—•——.......... — 17 " Reports ____............_..........._..............__.-__...._--___........_——......_______! 6, 52, 77, 177 Letters from Abroad, J. P. Warbasse............__..__..__.._........6, 28, 69, 86, 106, 128, 167, 186, 207 Life Insurance, Co-operative__..........._......—-..———_.--...——.—————...........——————————— 154 London Co-operative Society_____..............—.....—.....—— ——......— —•-.....—............... .................—..............— 113 Long, Cedric ......__.._..________3, 23, 27, 46, 67, 145, 166, 184, 185, 205, 206, 224, 225, 226 M McCarthy, C. ___________.______........ Managers, List of ____._____.__..___-___ Managing the Manager __________-———- Marsh, Benjamin C. ____.........__...—__...——- Maynard Co-operative Society Report____— Medical Clinic at Franklin Creamery...--......-....--_ " Service, Co-operative, in Canada_____ " Service in Brussels__..._.____......_—— Milford, N. H. ___........______.__...___.__. Milk, Co-operative __.__......_........_..__—— Millers' Trust Defeated in Sweden_.____...._ Miners, Killing .__________._..__.—._—_— Miners of Nova Scotia._____.._.......__.....——••••• Miners' Store, Hillsboro, 111______.......................... Minn. Co-operative Societies Conference__......—. " Farmers Ship Wheat to British C. W. S... Monopoly in Bread and Milk___..—.————............ ............. 123 __ 156 .__ 21 ........— 130 ......74, 214 ......_ 42 .......... 112 106 .....35, 155 .........34, 84 ............. 192 ,.....—. 66 82 .—..... 153 -96, 155 ............ 154 _ 205 Pacifist on "Why Co-operation is Not Enough".......____-_________.__....__....._____ 208 Patronage Makes Dividends._____._.__._.„_...._....._..........____.....___.._._____.___ 233 Pension Plan ___.________._......________ ...._.__..._ . . 212 " Scheme for Employees__.____________._.____......_......_......__..._.......____ 191 People's Corporation—Book Review......___......._..__._____________.________....... 118 Photographs _.............________..___........._.............41, 61, 81, 101, 121, 141, 161, 181, 201, 221 Picnic, Co-operative, Minn. Managers____...___._________________________ 213 Political Commissions ___..______________.............________________.______ 125 Popular Ownership _........._______..._._____._....__.._._______ ______H4) 216 "Prairie Fires": Book Review___________.__..___._.__._._..._......_________...___ 236 Press Owned by Readers.___.___________......________........__._...____......___ 204 Production, Co-operative __.............___.___.._.__,__.__._.......____.._________133, 189 Producers and Consumers, Unite!......__........__............__...............__.____......____._.....___ 84 " Co-operation in Great Britain__._....._______........ ...____.......__._._._.__ 84 "Produktion" ._____.___._.......................____..___.__._._........._.................._................__............___...... 134 Promotion Methods Used on Children.._______.__________.___.._,._____.____ 206 Publications, New League______.__....._......___.__...........__________......_ __._.... 97 Questions to Directors_. Q R 135 Radicalism, New Moves to Arrest._____..___________________.___.____.__ 224 Radical Labor Leaders on Co-operation__..........___._____.____________.__..__ 131 Receivership for Producers and Consumers Bank__.____.__......__..__._......__....____ 131 Reeve, Sidney _____..._________......__.__.____ __.. _, ___.......____....._.. 108 Religious View on "Why Co-operation is Not Enough"......________.___..______..... 187 Rent Bill Like This? Why Isn't Your........................................_....................._....................................................................... 3 Resolution re Executives Not Holding Political Office____________________.____ 106 Restaurants: Co-operative ______.__._..........__.....___......__._.__..........._......__ ...._ 202 Richberg, Donald _________._____.__________._______ 229 Riverview Co-operative Apartments ___________________________ ____ 64 Russia and Conflict Between Co-operation and Stateism.—....._._______________._.28, 48 Russia, Co-operation in ......._..___......______.___.....___.__......__.__.___.____..28, 189 Sarteel Statue ____.__........................___...__..............__..................__....._...............158, 176, 178, 198, 218 Sault Ste Marie Co-operative Association___..___.__........__________________14, 94 Schools, Co-operative _....___....____._....._____.....___......„„....... .34, 112, 130, 231 " Co-operative Training .............................._......._.„.—.„„..........._.............................102, 156^ 175^ 222, 233 Secretary's Report of Activities of Co-operative League__.......—_....__......__._.__......_...... 16 Seven Strides Onward___...._ . 62 Shilling, W F. ....................................___....................._—.„.„..............._..................„„...................—......I—____„!__ 106 Single Taxer on "Why Co-operation Is Not Enough"__...__________...__.__..____ 130 Social Aspects of Farmers Marketing__.__._...____....—_._......_._____._________ 137 " Evolutionist on "Why Co-operation Is Not Enough"_____.__________........._.... 108 INDEX Socialist on "Why Co-operation Is Not Enough"... Springfield, Mass., Co-operative Bakery_............_..... Start New Year with Co-operative Audit_. Staunton, 111. __.________________ Stock Turn, Do You Get?__....._____.......... Stone, ^Varren S. _______._____>___. Subscription Getters ____......____.____.... Super City ______.....____________ Sweden, Co-operation in ___._........._____._......... Switzerland, A Little Journey Into (J. P. W.)___.. Syndicalist on "Why Co-operation Is Not Enough"...... .......... 68 ...35, 152 . 15 __ 155 __ 229 __ 146 __ 176 ....... 118 ....... 190 ....... 186 ....... 168 Taxation, Co-operative and Land Values__...__... Telephone Sales _____........__.._.......................................... Telling the Farmers What They Already Know- Things We Value Most_________...____........... Thompson, Huston ______________——.—— Trade Unions of the World._______......_——. Union Sidelights (J. P. W.)__..........__...... Training School Students ......___........_.....__...——. " School, Co-operative _______.._....._.... Treasurer's Report, Co-operative League___.......... Two Classes Developing._____.—.—————.——— 231 115 _ 127 ___.................. 22 . ................. 172 .........._.................__..___ 127 .................... __...............__...... 167 ..__.............._....._.....101, 221 ...32, 102, 156, 175, 222, 233 ...1...11..L1........J___........... 223 U United Co-operative Society, Maynard, Mass......... " States of America________...._............ Utica, N. Y., Bakery and Store.______....._..... _____74, 214 .__.. ___ 207 ..__74, 133, 194 Valgren, Victor N... Victoria, Kansas ____. Villa Grove, 111__..........._... __ 196 .......... 154 ......... 194 W Wage-worker, What is the Place of the___________—————— Wages in Europe and America____________——————————— Wall Street to Main Street.__...........——————————————————--- Warbasse, J. P...... ...............___.........._1, 2, 6, 21, 22, 28, 44, 45, 46, 106, 125, 126, 127, 128, 145, Ward, Gordon H. ______......................... Warne, C. E......._..........._..__............__... Waukegan Society to Conduct School... What Killed the Co-operatives?. Why Co-operation Is Not Enough.....____....._46, 47, 68, 90, 108, Who Are Co-operators?.____________..........——•—••••••———————• Wholesale Federation ___________..........._.............——.———————• Wholesaling, Co-operative _______._.___........__-_———.——— Women in Japanese Co-operative Movement......__.............———.——.......... Women's Electrical Association, England————————————————— " Guilds in Illinois__.....___._......_........................................_—— Worcester, Mass., Jewish Bakery_______...._......_——............................. Workmen's Circle on Co-operation...____......____——————————— 48, 165, 66, 69, 84, 167, 186, 86, 204, __ 191 __ 224 113 104, 105, 207, 223 ........... 229 148, 170 ____ 193 ...........................___.___.... 56 130, 146, 168, 187, 208, 236 .___.._............__...___ 184 ".......................____.._.......... 173 .... .. __ 114 . ...__........_____ 112 ...................__..___..__........ 96 ______________ 153 _______.._______ 152 X Xmas Gifts, Distribute to Your Patrons....... ......... 237 Year Book, Co-operative 37 (MOTION A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in voluntary association, produce and distribute for their own use the things they need. Published Monthly by THE CO-OPERATIVE LEAGUE 167 West 12th Street, New York City J. P. WARBASSE, Editor Entered as Second Class matter, December 19, 1917, at the Post Office at Km- York, N. Y., under the Act of March 3, 1879. Price gl.OO a year. VOL. XI, No. 1 JANUARY, 1925 10 CENTS Vital Issues \Ll The New Year JANUARY, 1925! The tumult in politics has ceased. The parades, prophesies, promises and shouting are done. As the dust settles there remain upon the field of contest the two eternal classes of political voters: the re joicing victors and the dissatisfied van quished. Each thinks it has saved the country, or has failed to save the country, as the case may be. Each is probably as wrong as the other. The country is not saved or lost by poli ticians. The number of people who think it is not is increasing. Only about half of the voters voted at the last presidential election. In some states more than ninety per cent of the voters did not vote. They plowed their fields and cast corn to the chickens instead of votes. After all, per haps, they realized that that was more im portant. The politicians' pledges will not be kept; but the farmers' plowed fields will fulfill their promises. They will yield grain; and the chickens, eggs. And by these we live. In the field of Co-operation the New Year begins fair and clear. We have no political contests to rend us in twain. "We welcome to our society the politically vic torious and the vanquished. We know no classes. This is possible because: we are not concerned with any purpose to rule men; we are only concerned with the administra tion of things. This is the great principle of Co-operation. We are learning how to carry on busi ness for purposes of service. It is just the same sort of business that other people have learned to carry on for purposes of their own private profits. We are training our selves in distribution, production, adminis tration. It all means work; but we are learning. Most people would rather shout and parade and make speeches and vote for somebody who is mighty in hopes and promises; and then forget it all until the next time. But we have to be eternally at it. Patiently learning how to make our accounts balance, putting goods on the shelves; reducing costs while doing justice to labor, and teaching people how to help themselves. These are our endless but not thankless tasks. This New Year finds us farther ahead than we were a year ago. As we look back the progress can be clearly seen. We can check it up and measure it by actual figures. The executive staff of The Co-opreative League believe in Co-operation. It is a sound and winning principle. We send greetings to our fellow Co-operators who are working for this movement and giving it their best support in the building of a better world. We know the goal toward which we are moving. "Forward and Together!" CO-OPERATION CO-OPERATION Can Labor Get All the Profits and Win TAKE a look over the results of the increase of wages in the pivotal in dustries. What has happened ? When labor has gotten more wages, prices have been put up higher. Read the report of the U. S. War Labor Board on "The Relation Between Better Wages and the Increased Cost of Living." When labor got an increase of 16% in the sugar industry, the price of sugar was per manently increased more than 40%—at first it was jumped up over 300%. The coal companies in 1909, when they increased wages, increased prices four times more. In 1905, the cost of labor on a pair of shoes was 60 cents. Fifteen years later the labor cost was $1.02. That means that during this time labor got an increase of 60%, but the price of shoes to the consumer increased 200%. It is a pretty general rule that when the industry has to pay an increase of wages, it adds that increase to the price of the com modity, and then, to be on the safe side and to provide for any unexpected contin gencies in the future, it adds some more. How many of us have been canny enough to observe that the more labor at tempts to cut into the profits and take them for itself in the form of larger wages and shorter hours the bigger the profits become ? How many people have realized that in stead of reducing the profits of the em ployer, the demands of Trade Unionism result in increasing the profits of the em ployer ? Do you recall the motto of the Indus trial Unionist?—"Strike; get an increase of wages; rest; then strike again." Many trade unionists believed that this was the way to win: to keep on striking and de manding until the workers finally have got ten all of the profits. Then the industry would fall into their hands like a ripe apple. They said: "When labor takes all of the profits, labor will then take charge of the business. When labor is at last in control, the man who was once a capitalist or an employer will have to join the ranks of labor. He will have to go to work himself, if he wants to make a living, for there will be no other way!" But what are the facts? The more wages the workers have gotten in response to their demands or their strikes the more profits the employers have made. Look at the surplus wealth in interest and dividend which have been created by our industries in these days of high wages. Low wages could never have created such profits. Is the worker "getting control of the business?" Is the employer "joining the ranks of labor in order to make a living?" He surely is not. Industrial unionists may answer, "We have not had enough strikes, we have not gotten enough in wages yet." But the facts stand out—more wages; higher prices; more profits! Is there anyone who still claims this is the way to put the employer out of business? Is there anyone who still thinks that this is the way to supplant the capitalist ? Of course we are for labor organizing. Labor should organize for the same reason that the capitalist organizes—for protection and for solidarity. But neither the capitalist, organizing to get more profits, nor the worker, organizing to get more wages, will change the present industrial system. Neither is offering a fundamental plan of constructive progres sive action. Before we can have a plan we must have a motive, a motive that is as sound as it is human. The best motive we know for the reorganization of industry is to have indus try run in the interest of all the people. At present it is run in the interest of the own ers. Some people would have it run in the interest of the workers in the industry. We believe neither of these are sound. And they are not human either. They leave too many of us out of the picture, the women home-makers, the old folk, the non-indus trial workers. They all need to be included. These people are all consumers. To run industry for service is a sound motive. To run the industrial system in the interest of the consumers, this is a mo tive that excludes none. It is human. Con sumers' Co-operation is the plan that can and does put into effect service for all rather than profit for the privileged. This is the program for a New Civilization. J. P. W. The Credit Union and Co-operative Business have advocated for many years that the Credit Union be used more as an aid to the co-operative store. Recent experiences of a few Credit Unions in Massachusetts and New York confirm our belief that this is sound doctrine. In New York we have a Credit Union which (contrary to the customary rules of the Banking Department) is permitted by its charter to make loans to co-operative associations. One of the newer housing associations has just become a member of this Credit Union. When a person comes along wishing to join this housing associa tion, but is unable to put down the full amount of money required for the posses sion of an apartment, the association can either urge that he himself join the credit union and borrow the money or it can borrow the money itself and make the loan to him. This arrangement between the credit union and the housing association benefits the individual wanting a home, the housing association wanting members, and the credit union in search of borrowers for its idle capital. In Massachusetts the Jewish co-operators have several credit unions which are doing valiant service for the co-operative bakeries. In one city we found that a private baker was causing many defections in the ranks of the co-operative baker's membership. But the same men who are directing the policies of the bakery are also running a very popular credit union. When the folks who are disloyal to their own bakery apply for a loan from the credit union they find themselves in an anomolous situation, and the Credit Committee of the Credit Union are in a good position to reason with them and show them the folly of deserting one of their own co-operative enterprises and at the same time coming to another for help. In another Massachusetts city the bakery co-operators formed a credit union and within a year had enough capital on hand to purchase a large building on the main street of the city. This building is bringing in a good revenue to the group and can well be used as a good distributing center for the bakery products. Incidentally, we find that co-operators in many parts of the country who have no credit union legislation enabling them to start an orthodox credit union bank are resorting to other forms of incorporation and in some cases finding more freedom than we, in New York for instance, have under our regular credit union charters. The development of co-operative credit and co-operative banking in the United States depends not so much upon proper enabling legislation as upon good co-opera tors determined to find the way to start such institutions. When enough people want co-operative credit we shall have it, regardless of the condition of the banking laws. Why Isn't Your Rent Bill Like This? rent statements openly arrived at are not in favor with the landlords of the United States. The rent bills handed out to the tenants are the private concoc tions of the real estate owners, and no amount of pleading, cajoling or threatening by the hapless householders will induce these estimable gentlemen to produce the chemical analysis of the brew they force their helpless victims to gulp down. The following is the bill sent each month to the tenants of the Bedford-Barrow Co operative Apartments, owned by the Con sumers' Co-operative Housing Association of New York. It tells the member of the co-operative everything he wants to know about the use to which his money is being put, and it is a challenge to the private owners of apartment houses in the city which will make these profiteers squirm. MR. JAMES COUGHLIN, 68 Barrow Street, New York City. BEDFORD BARROW CO-OPERATIVE APARTMENTS Monthly Charges for December, 1924 Operating Expenses: Janitor ..................... $2.05 Insurance ................... .30 Taxes (real estate and water) 6.19 Coal ....................... 3.43 Lighting (halls) ............. .89 Repairs ..................... .89 Interest, 1st Mortgage. ....... 5.95 Amortization, 1st Mortgage... 1.76 Depreciation Fund ........... 5.59 Interest, 2nd and 3rd Mort.. . . 5.97 Interest on stock ............ 4.65 Management and miscellaneous 3.05 ———— $40.72 Retirement of Mortgages: (Credited to stock account)... 11.28 Total Charge $52.00 The Consumers' Co-operative Housing Association is using facsimiles of this state- CO-OPERATION ment for publicity purposes, and before it has gone very far it is going to set a great many of the unfortunate tenants in the metropolitan area thinking and figuring on rental problems as they have never thought and figured before. Apartments of the same size as this one and located in the same neighborhood are being rented out by private landlords at $100 per month and upward. And they are not getting back any credit in the form of additional stock for the amount they con tributed each month to the retirement of the landlord's mortgages! The thirty families that have already moved into these houses since they were re novated are now planning for collective buying of several of the essentials which are sold at a good margin of profit, such as cord wood for fireplaces, electric bulbs and fixtures, ice, milk and cream, apples and other perishable fruits; they are consider ing the fitting out of a kitchen in the base ment where food may be prepared and sent hot in the dumbwaiters up to the apart ments where the occupants are out all day and have no opportunity to do their own cooking; and they are arranging for a play ground on the roof and a large room in the basement for the use of amateur carpenters; a common sewing room for the women, magazine clubs and other co-operative features. The Association is now planning its second housing development over in Brook lyn Heights, just across the East River. Co-operation Among the Farmers Address Delivered at the Fourth Co-operative Congress By ALBERT S. Goss Master, Washington State Grange; Formerly Manager, State Grange Wholesale TN discussing Co-operation among the *- farmers we must remember that farm ers are not all members of co-operative associations, and all those who belong to co-operative associations are not all co- operators. The percentage of real co-opera tors is small. Nevertheless I believe that there are more farmers interested in Co operation than any other single class. We have 10,000 agricultural co-operative organ izations in America to-day. Some of them have a membership as high as 10,000. They call themselves "co-operative" although the members know but little about it. There are two reasons why we have more farmers than any other class in the co-operative movement. First, the average farmer has more opportunity to think about these problems. He arrives at the conclu sion that it is a lot better to work with his neighbor and organize with his neighbor than to work against him. When he has come to that conclusion, he is a long step forward. Secondly, we farmers just have to do it. We have been forced to it. Dis honesty, poor service, and high prices have all combined to force the farmers into the co-operative movement. Let me illustrate. The last figures from the Department of Agriculture stated that there is a thirty-five million farm popula tion and they raised in the year seven and a half billion dollars worth of crops. They sold this to the middleman for nine billion dollars. The latter sold it to the consumers for twenty-two and a half billion dollars. In other words nineteen million people, the traders, got twice as much for selling as thirty-five million farmers received who raised the crops. Do you see why we have to get into the business for ourselves ? How about the investment? The middleman didn't have money invested. The farmer who raises his crop sometimes has money invested for four years. The last figures from the Department of Agriculture tell us that farmers in America had seventy- eight billions invested in agriculture. This is more than the banks, railroads, manu facturing enterprises and all the mines of America combined. We say we haven't been getting our fair share. During the last four years, the mortgage indebtedness has increased over three hun dred per cent; two million farmers have left the farms; and 26.7 per cent of the American farmers have either lost their farms or are hanging on with their credit- CO-OPERATION ors on their necks. That is another reason why we have been forced into the co operative movement. These two million farmers have not left because they wanted shorter hours nor were they lured by the tinsel of the city. The farmer loves his daily life, he loves the soil, he loves his tasks. They left because they couldn't meet their bills on the farms, despite the sixteen or eighteen hours work a day. That is the history of the American farmer in the four years just passed. The farmer's problems could be solved if he could get a fair price for what he raises. When we realized that the middle man gets twice as much as the farmer who raises the product, we cast around and tried to find out where the remedy lay. A farmer sees that there is a shortage of some commodity in Maine and he ships a carload of that product to Maine, and farmers from everywhere begin to ship to Maine. The result is that enough stuff goes to Maine to last them for seventeen years, and of course the price falls. You can't dump down all your crops. You cannot foresee how much you will get. The system at present available is that of the middle man who takes it off our hands, stores it, and sells it where he can get the most money for it. I want to tell you about the deflation of 1920. An instance will serve to illustrate. A family of farmers, father, mother, and three children, came from Montana and found a spot in Washington which they thought was heaven. They all worked until the father finally got on his feet sufficiently to be able to buy the farm on mortgage. The bank through which things were nego tiated was a little bank in the community. The notes were deposited in the Federal Reserve Bank. The crash came in Septem ber. Prices were cut in half, and by Octo ber there was nothing left because the farmers lost everything. This little family lost everything. They were starved off their place because there was no legitimate credit. The farmers could not buy any of the necessities of life and the vicious circle of that time went round and round. It started when the Federal Reserve Bank deflated the farmer. You in the city are interested in us because we farmers are your buyers. I want to read to you Mr. Swing's state ment in connection with this: Mr. Swing on May 23, 1922, said: "I cannot understand how men can continue to deny that the deflation policy adopted by the Federal Reserve Board was not deliberately aimed at the farmers of this country. "I was present at a meeting of the bankers of southern California, held at El Centre, in my district, in the middle of November, 1920, when W. A. Day, then deputy governor of the Federal Reserve Bank of San Francisco, spoke for the Federal Reserve Bank, and delivered the mes sage which he said he was sent there to deliver. He told the bankers there assembled that they were not to loan any farmer any money for the purpose of enabling the farmer to hold any of his crops beyond harvest time. If they did he said the Federal Reserve Bank would refuse to rediscount a single piece of paper taken in such a transaction. He declared that all the farmers should sell all of their crops at harvest time unless they had money of their own to finance them, as the Federal Reserve Bank would do nothing toward helping the farmers hold back any part of their crop no matter what the condi tion of the market. "I think I was the only person present who was not a banker. This was in a way, confi dential advice being given by the Federal Re serve Bank for the guidance of the smaller banks, many of whom were members. One of the bankers asked Mr. Day this question: 'If you say to us we cannot loan the farmer the money with which to hold his crop, to whom may we loan money to hold the crop until it can be taken up by the market in an orderly way according to the demands of the consum ers?' 'Oh:' said Mr. Day, 'of course, we will have to loan money to the middleman to take up the crop and hold it until the market is ready for it.'" We farmers say that until we have a de pendable source of credit, we cannot build a solid co-operative movement. Our plan is to base automatically the amount of credit on the amount of success in raising crops. There must be some system under which the credit can be furnished regardless of opinions of any man or any set of men, it must be automatic according to the demand. We have incorporated this plan into a na tional marketing act. It also provides for assistance in organizing the farmer. This is the Grange Marketing Plan. We have met here primarily to consider the consumer's co-operative movement. We farmers have been forced into the con sumers' movement. We want to build the consumers movement to a point where we can own our factories and sources of pro duction. We want to build the producers organizations to a point where we can raise, CO-OPERATION assemble and ship to the consumer. There are those who feel that the producers' move ment is not a complete movement. I wish the day would come when the consumers could own farms. But that will take a long time. In the meantime the producer must organize. Farming is done by a class of citizens who take so much interest in their work and they love it so much that they can never hire men to compete with them. Hired labor on a farm is usually inefficient labor, and we must not plan to load down the consumers' co-operative movement by inefficient production. You cannot force an inefficient system in the place of an efficient system. The farmer is the victim of the middle man quite as much as any other consumer. I could tell you of hay purchased for $20 and sold at $60 a ton. Farmers were forced to buy because they needed hay and could not get it anywhere else. This kind of profit-making is nothing short of robbery and it is against this practice that the farm ers have to contend. The adulteration of products is a common practice among the middlemen, despite the state laws which are supposed to protect the consumer. There were more than two hundred violations of the law in the State of Washington which came to the notice of the Agricultural De partment of that state in one year. Out of these only five feed dealers were fined $500 each. The Department didn't divulge their names. The fine is nothing but a license to protect these men. We have laws against adulteration but they do not heed them. We have sixty co-operative store societies in our district federation in Washington. Thirty of them are real stores and the re maining thirty are buying clubs. They are doing about six million dollars worth of business per year. We have our own feed mill, and in three years we have not had a single case of feed adulteration charged against us and there have been one thous and cases charged against private dealers. We have been forced into consumers' co operation. The average farmer is slow to go into business, but we have been forced into it. Our only hope of economic freedom is to control the source of production of the things we need. We were selling cereals. An Eastern manufacturer, wanting our market came out with a big advertising campaign, plas tered up the cities and towns with a Scotchman in kilts and was ready to sweep us out entirely. We had to resort to his own tactics and sent out canvassers to the stores. Then the manufacturer put pages upon pages into the newspapers and plac ards in the trolleys. We sent out canvassers into the homes. After fifteen years we were forced to do billboard advertising and to use every device to hold our own; and you are paying the extra 50 per cent of the cost of that man's advertising. We are driving ahead in the co-operative movement. We are going to keep our minds on the main point that we are build ing for the purpose of owning our sources of production. With that idea, some day we shall be a dominant factor in the com mercial world. Letters From Abroad Finland, the Farthest North By J. P. WARBASSE rT^HE Finns have suffered about every- •*• thing that ruling classes can impose upon them. The Swedish government on one side and the Russian on the other fought over them, robbed them, persecuted them, and "governed" them for over 800 years. Despite all the attempts to stamp out their language and their national soli darity, both have survived; and what is more, Finland has built up a great culture that the world is compelled to admire. There are scarcely 3,000,000 Finns, but they are playing a noteworthy part in ad vancing civilization. Those who have come to the United States can show a larger percentage engaged in co-operative organi zation than can the people from any other country in the world. Take the boat from Stockholm in the evening. As you sail out of that beautiful harbor you get a good view of the big flour mill of the Swedish Co-operative Society on the island of Hastholm. It stands at the water's edge like a monument to human progress and faces the palatial residence and grounds across the harbor of the CO-OPERATION "money king" of Sweden. The symbol of the civilization of the future and the sym bol of the civilization of to-day face one another at the gates of Stockholm and the stream of traffic passes between. Some day one of these will be gone. [n the morning you arrive at Abo, Fin land. There on the pier stand the Finns. You see a half a dozen whom you recog nize at once. But you are wrong; they really are not Alanne, Niemela, Grandahl, Wirkkula, Ronn and Liukku—they only look like them. By train you come to Helsingfors and get out at a railroad station which is unique in its beauty and architecture. And then you are in the heart of Finnish Co operation. If you are fortunate enough to be wel comed at the station by such a friendly host as the K. K., with Mr. Ules Primus-Ny- man as its representative, you are happy indeed. Then you proceed to learn about Co-operation. The oldest co-operative store in Finland dates back only to 1899. The "Pellervo" Society (1899), is the first serious attempt at an educational organization. Then so cieties multiplied. In 1904 the Wholesale S. O. K. was formed by the union of twelve store societies. Since then the move ment has grown steadily. Co-operative so cieties for most every sort of service— stores, telephones, farmers' supplies and production—are to be found even far above the Arctic Circle. The largest single society is "Elanto" in Helsingfors. It began with a bakery in 1907. Its 1,000 members have increased to 30,000 in a city of 220,000. The bakery supplies one-third of the bread of the city. It is just completing a new bakery which will have a capacity to bake all of the bread used in Helsingfors. This new bakery is a fine plant. It has 43 ovens, is 250 feet long, 90 feet wide and 95 feet high. A flour mill will be built adjacent to the bakery. From bread the "Elanto" society next expanded into other fields—milk and groceries. It opened restaurants in 1908 to popularize its bakery products. Then came shops of all kinds. Now it has 57 bread and milk stores, 52 grocery shops, 14 meat shops, 1 warehouse, 9 drug stores, 4 shoe stores, 2 dry goods and clothing stores, 8 restaurants and 1 savings bank—171 stores in all. It has also a sausage factory, a brewery for making non-alcoholic malt beer, and a jam factory. The society limits savings- returns to 2 per cent., and is building up a reserve. It owns two farms with an area of 4,500 acres. The society has 1,500 em ployees. It owns 35 automobiles. It dis tributes 11,000,000 quarts of milk yearly. Statistics show that it is responsible for a decided lowering of the cost of living to all of the inhabitants of Helsingfors. In the beautiful harbor of Helsingfors is the island of Sumparin. It is the prop erty of "Elanto" and is used as a place of recreation. In the summer a motor boat makes regular trips to this charming island. There the children of the employees spend the bright summer days playing, swimming, singing and dancing, under the guidance of trained instructors. There are two large national co-operative unions in Finland, the S. O. K. and the K. K. The S. O. K. has its membership most largely among the farmers. It is a wholesale society connected with the Y. O. L., or the General Co-operative Union. Its membership consists of 464 so cieties with 1,763 stores, having a total individual membership of 180,000. It has a match factory, brush works, preserving factory, bag and envelope mill, wood work ing and furniture factory, saw mill, a flour mill, fruit farms, hosiery factory, chemical factory, coffee roastery, biscuit and maca roni factory, brick yards, meat packing, etc. The match factory makes over half a million boxes of matches daily and employs 270 people. The head offices in Helsingfors occupy a model building. There are 170 office employees. Among the many depart ments in this well-organized business is a completely equipped department of archi tecture. Many of its buildings are of unique beauty. The K, K. was organized in 1916. It came about in this way. The "Elanto" so ciety in Helsingfors had grown large and prosperous. Its members were mostly in dustrial workers. It was a member of the S. O. K. The members of "Elanto" were much more radical than the rural members of the S. O. K. "Elanto" withdrew from the S. O. K. and, with a number of other societies composed largely of industrial workers, formed a federation called the K. K. (Central Union of Finnish Distribu tive Societies) with a wholesale department called the O. T. K. ("Osuustukku- kauppa"). This name is short enough to CO-OPERATION print, the others for want of space must be abbreviated to their initials. With many young, efficient and aggressive men in the management of this organization, its progress has been remarkable. In the course of seven years its member societies have extended all over Finland. Its mem ber societies have over 1,000 stores, with many bakeries, restaurants and other pro ductive plants. The total membership of the K. K. so cieties has become nearly as large as that of the S. O. K. Its life insurance society "Kansa" and its fire insurance society "Tulenturva" are also growing. Its cen tral offices in Helsingfors are models of efficiency. Here one finds systematized every necessary department for carrying on the work of a central union. Among these departments may be mentioned the follow ing: Propaganda, Management, Super visory, Building, Law, Audit, Employment, Education, Publishing, Statistical, Foreign, Sales, Productive Plants, Office Furniture, etc. And just a few blocks away is the head office of the S. O. K. with a duplication of all of these splendidly organized depart ments—two central offices in the same city doing much the same work! One day in July we drove sixty miles out in the country from Helsingfors to visit the Ahjo society. In this district the people of several of the country towns formed a society to which nearly the whole population belongs. The one big business building of this town Hyvinkaa, is that of the Co-operative Society. The store has de partments for all kinds of goods. A neat restaurant in the same building serves meals to men members who are unmarried. The bakery in a new building produces bread to relieve the housewife of drudgery and cakes beyond the ability of the amateur to make. The meeting hall of the society was still decorated with the green boughs that signified a recent wedding. These country societies play a vital part in the lives of the people. On another occasion we visited the so ciety at Viborg near the Russian border. Most of the business of the town is done by this society. Viborg has 50,000 population. The society has 48 stores, besides restaur ants, a bakery employing 15 bakers; a pig farm, sausage factory, bottling works, etc. Its shoe repairing shop mends 30,000 pairs of shoes a year and manufactures 3,000 pairs of high boots and an equal number of sandals. It distributes 1,500,000 quarts of milk yearly. From Viborg we drove 80 miles back in the country to Imatra. Here in the forests, by the roaring water falls of Imatra, is a society of 3,000 members. Some of its 11 stores are built of logs. The store in the village is neat and clean. The barefooted women customers, healthy, ruddy and cheerful, apparently go without shoes from choice. And why not? They look com fortable and charming. We found in this little remote village, as everywhere in Finland, the S. O. K. store and the K. K. store in competition. If these two co-operative organizations would unite into one, Finland would have, next to Denmark, the strongest co-opera tive movement of any country in the world. There is no good reason for two separate national wholesales. The S. O. S. is neu tral and keeps free from politics. It is con servative as all organizations of farmers are bound to be. That is purely a matter of the occupation of the members. Officers of both organizations are members of par liament. The K. K. was once accused of left wing socialist activities. In America the Finns have regarded it as the Communistic wing of the Finnish movement. This is positively not correct. The K. K. is neutral in poli tics. Some of its leaders and many of its members are personally promoters of the politics of the Social-Democratic party, but the K. K. as an organization takes no sides in politics. Its officers are not Communists. Some of them might during the revolution six years ago have looked with some hope towards communism to save Finland from militarism and from the white terror of the bourgouisie; but if they did then, they do so no longer. At present, not only the officers but the general membership of the K. K. are strongly opposed to communism. What little influence communism once had is gone. They will have none of it. They feel that it is destructive of Co-operation. In every country in Europe, except Russia, the leaders of the co-operative movement are opposed to communism; and in no country is this feeling stronger than among the leaders of the K. K. in Finland. The American Finns will make a useful CO-OPERATION contribution to the accurate study of Co operation if they will circulate the knowl edge of this fact. The reason that these K. K. leaders are opposed to communism is because they are thoroughly radical. They want to see a co operative commonwealth take the place of the capitalist system in Finland, and they believe that Co-operation can accomplish this end and communism can not. They have seen communism in action and they know its limitations by observation of it at work. As one of them said: "Communism would only break down what we have thus far built, give us disorder and autocracy in its place and then swing back toward capitalism in the end; we want to keep moving steadily onward." Finland is moving on. The consumers' co-operative societies are steadily growing. Already in this country of a little over 3,000,000 population, the consumers' so cieties connected with S. O. K. and K. K. have a total membership of 350,000—that represents more than half of the families of Finland. There is something about the Finns that makes them effective co-operators. They make their societies succeed because they are willing to sit down together and give all of the time necessary to think things over and plan things out. When they have a meeting they talk slowly and deliberately, the meeting lasts a long time and then they do an unusual thing: they go out from the meeting and put into action the thing they agreed upon. The Finns get results. They work to gether. They have a strong clannish spirit. And above all they have social ideals. No people in the world, of whom I know, have a more earnest desire, backed by a will, for a better organization of society. They want social justice and they are willing to work for it. This springs, perhaps, from the fact that for centuries they have been persecuted and subjugated by the Russian government and by the Swedish rulers. For nearly a thousand years they have hoped and struggled for liberty. Now they find them selves on the way to attain it. And Co operation is the instrument they find most effective. News and Comment National Co-operative Wholesale Federation of the outstanding results of the Fourth Co-operative Congress in No vember was the Conference of Wholesale Managers and those engaged in joint buy ing activities. These sessions began Sunday morning immediately following the Con gress and continued for a day and a half. The subjects discussed were : Brief history of the wholesales repre sented. Possibilities of consolidation of buying of flour and other commodities. Access to producers of nationally adver tised products. Import and roasting of coffee by whole sales. Necessity for uniformity of co-operative labels and brands. Promoting the loyalty of retail managers. The buying club and the wholesale. Wages among wholesales employees. Dealing with the credit evil. Publications by the wholesales. Organization of a permanent wholesale federation. Those present for part or all of this Conference were: S. Alanne, Educational Director, Co operative Central Exchange, Superior, Wis. A. S. Goss, Master, Washington State Grange, Seattle, Wash. M. Goldberg, Secretary, Co-operative Bakeries of Massachusetts, Lynn, Mass. K. E. Grandahl, Manager, United Co operative Society, Fitchburg, Mass. George Keen, General Secretary, Co operative Union of Canada. W. Niemela, Manager, United Co operative Society, Maynard, Mass. Eskel Ronn, Manager, Co-operative Central Exchange, Superior, Wis. M. Rubinson, Manager, Co-operative Bakeries of Brownsville, Brooklyn, N. Y. A. W. Warinner, Manager, Central States Co-operative Wholesale Society, East St. Louis, 111. Dr. Warbasse and Cedric Long repre sented the Executive Staff of The League. 10 CO-OPERATION CO-OPERATION 11 Mr. Ronn briefly outlined the develop ment of the Co-operative Central Exchange since it first started in business in 1917 with one employee at a rented desk, up to the present time when it is doing a business of almost three-quarters of a million dollars and has more than sixty retail stores in affiliation. Mr. Warinner related the story of the Central States Co-operative Whole sale Society. It started as a conference for joint buying in 1919; swollen in 1921 to a vast chain store system doing a business of three million dollars; and shrunk again in 1923 to a condition of virtual bankruptcy. The Central States Wholesale is now or ganizing the educational work which should have been done from the beginning and for the past twelve months is showing a healthy growth. Mr. Gross related the story of over-expansion in Washington with its disastrous effect on a group of farmers' stores organized merely for the purpose of giving bargains in prices. Like the Central States Wholesale, the Associated Grange Warehouse Company, now built over the ruins of misnamed "Rochdale Co-operative" (Pacific Co-operative League), is gradually building up a strong membership and a sub stantial business among forty or fifty stores and an equal number of buying clubs in the Northwest. One of the most powerful in fluences for progress in Washington is a central accounting system conducted by the Warehouse Company in Seattle, and the exchange and comparison of invoices from the various stores. Considerable time was given to a dis cussion of flour. The Massachusetts Con ference of Jewish Bakeries and the Massa chusetts Finnish Bakeries together are using hundreds of carloads of flour every year. The same is true of the Jewish and Finnish bakeries in Greater New York. The Co operative Central Exchange of Wisconsin is shipping flour only to the Finnish bakery in Brooklyn. Meanwhile the Grange Warehouse in Seattle requires tremendous quantities of feed for its farmers' stores. Mr. Goss proposed that an effort be made to locate a mill in the neighborhood of Montana whose product might be so utilized that the flour would come to the co-operatives in the East and the feed go to the co-operatives in the West. Such an arrangement as this might ultimately enable the co-operative wholesales of the United States to control completely the output of one mill. Mr. Ronn promised to attend the next meeting of the Conference of Massachu setts Jewish Bakeries to talk with them about the joint buying of flour directly through the Co-operative Central Ex change. It was also agreed that samples of the flour now being used in the East should be sent to Mr. Goss in Washington so that he can have tests made and thus be able to make his investigations in Mon tana more intelligent. It was discovered that the wholesales in Washington and Wisconsin are unable to buy the nationally advertised products di rectly from the factory, whereas the United Co-operative Society of Massachu setts and the Central States Wholesale So ciety has access to these commodities. The particular commodities discussed were to bacco, soap, coffee and cereals. It was de cided that the managers now unable to pro cure these products should establish a closer contact with Mr. Warinner at St. Louis. Mr. Grandahl advocated the direct im port of coffee and roasting under co-opera tive auspices. There was considerable dis cussion as to the advantages of a vacuum pack for coffee. All agreed upon the desirability of hav ing a uniform co-operative brand and a uniform label for co-operative products; but it was also agreed that progress in this direction would necessarily have to be slow. The brand "Co-operator's Best" seemed to be generally accepted. A decision was made that each group represented at the confer ence send in to The League office twelve sets of labels and printed bags for distribu tion to all the centers. The question of loyalty of local store managers and control over local stores is a difficult one. The wholesale in Seattle establishes its control through its central accounting system and the inspection of purchase invoices. The Central Exchange relies largely upon its auditing department and its training school for managers and bookkeepers. Both the Central Exchange and the Central States Wholesale find managers' conferences extremely valuable. Whereas in Seattle the conference of store managers had to be discontinued. The question was raised as to whether the wholesale could best promote sales among its affiliated stores through educa tion of the managers, the clerks, or the con suming public. The Central States Whole sale is making the biggest effort to reach the consumer directly through the United Consumer. Mr. Alanne believed that the employees, particularly the clerks, should receive the most attention. Mr. Ronn found the managers themselves most ac cessible. In the North Central states and in the Northwest there are many co-operative buy ing clubs, a proportion of which develop into co-operative stores. In order to dis courage the tendency of these groups to become mere devices for getting bargains from the wholesale, the Grange Ware house Company of Seattle refuses to sell to any buying club which does not retail the goods at more than 5% margin so as to build up a reserve for expansion. Mr. Warinner advocated expansion with the idea of the "store on wheels" or the "store at your door." Everybody present agreed with him. It was found that wages for wholesale managers and employees were fairly uni form in all parts of the country. There was a slight variation in the average of wages paid to managers of retail stores. The credit evil was found universal. The private manufacturers or brokers who wished to discriminate against co-operative wholesales find a ready excuse in the credit practice of the co-operative wholesales. The Central Exchange is very strict with its local stores and charges interest on all ac counts overdue; but it finds that less than 10% of its retail stores are doing a cash business with their own people. The Central Exchange does all of its publicity through articles in the Finnish papers. The Grange Warehouse depends entirely upon The Grange Nezus of the state of Washington. The Central States Wholesale utilizes both the United Con sumer and the Illinois Miner and does a great deal of direct advertising in the former. At the close of the last session of the Conference, Mr. Warinner expressed the opinion that this meeting of the wholesale managers was the most fruitful session of the entire Congress and believed that simi lar conferences should be held in the future. Mr. Goss moved that a permanent Wholesale Federation be formed and his motion was carried. The name adopted is "The National Co-operative Wholesale Federation." Officers elected were Mr. Warinner as chairman; Mr. Niemela, vice- chairman; and Mr. Ronn, secretary- treasurer. Mr. Alanne and Mr. Ronn were appointed a committee of two to draw up a declaration of purposes. Upon motion of Mr. Goss it was voted that the next meet ing of the Conference be called by joint action of the chairman and the Executive Staff of The League, at a place and time later to be determined. A decision was made that a real exchange of invoices between wholesales be inaugu rated. Mr. Ronn will mail his invoices to St. Louis; Mr. Warinner will attach in voices of the Central States Wholesale and forward to Maynard. Mr. Niemela will forward to Seattle and the Seattle Whole sale will return the shipment to Superior. Each manager will make necessary notes on the margin of all invoices he receives. The Conference adjourned at 12:30 P. M., Monday, November 10th. The Federal Trade Commission on Co-operation "PDUCATION works slowly, but it •*—' works. Ten years ago who would have believed that a department of the U. S. Government would be sending a re port to Congress recommending Co-opera tion as a cure for our ills and advocating that the government teach this subject and promote it in many ways ? But it has come to pass. In the summer of 1923, the Chairman of the Federal Trade Commission, Mr. Huston Thompson and Dr. William Notz, Chief of the Export Trade Division, studied Co-operation in fifteen European countries. The Commission has now made a voluminous report to Congress dealing with certain specific phases of the subject. Insurance and housing are omitted. But the report is illuminating on banking, distribu tion, co-operative education, women's organ izations, international Co-operation and co operative laws. It is a progressive sign that at last our Congress has had presented to it a docu ment announcing that the Co-operative Movement is of such magnitude and im portance as to challenge attention. The re port states that "more than 120,000,000 people are linked up with the co-operative cause." It is not news to co-operators, but it certainly is news to the Congress of the U. S. that, "during the world war the state 12 CO-OPERATION authorities in a number of countries found in the co-operatives the best if not the only large-scale organization available for dis tribution of the necessities of life and a serviceable agency for protecting the public against profiteers." The report goes on: "Moreover, in the post-war era the net work of co-operative societies stretching out over whole nations and tying together all classes of society, formed in many cases the strongest basis upon which the reconstruc tion and development of trade and industry could proceed, and without which certain economic reforms seemed impossible of achievement." It may open the eyes of our political class to learn from a governmental source that, "in some of the larger countries of Europe like the United Kingdom, Germany and France, the consumers' co-operative societies rank among the largest producers and dis tributors of necessities of life. In England and Germany nearly half of the population is affiliated with the consumers' wholesale and retail societies." The report goes on and gives figures showing the membership of the societies in many lands and the amount of business they do. There are such chapter headings as "World-wide Extent of the Co-operative Movement," "Magnitude of Business Turnover," and "Advantage of Consumers' Co-operatives." Under the heading, "Con flicting interests of consumers' and pro ducers' societies," the Commission gives its observations on the various methods of har monious exchange discovered in different countries. Thus the report shows that in Freiberg, Germany, the local consumers' society and the farmers' co-operative so ciety jointly operate a market in the city. In Switzerland the consumers' societies unite with the farmers' societies and with the municipal government to appoint a commission that fixes the price the con sumers shall pay the farmers for milk. Perhaps the most illuminating section in this report is on "Co-operative Education and State Aid." Here the Commission shows an unusual, and we may say with apologies, an unexpected grasp of the whole co-operative problem. This is summarized briefly as follows: "The factors which have contributed to the development of the co-operative move ment vary in the different countries. It is generally recognized, however, that popular education and training in co-operative methods and principles, by means of system atic educational propaganda and through special schools established for this purpose, is the one agency which has been most fruitful throughout the world in causing the co-operative idea to take root and to prosper. Leaders of the co-operative move ment have time and again emphasized the fact that the best aid which the State is able to give to their cause consists in pro moting the study of Co-operation, its aims and agencies, but otherwise to allow it free dom to develop independently by its own initiative and through its own resources and agencies. Experience in the United King dom and in Continental European States shows that State aid along other lines has in the long run proved more of a hindrance than a benefit to the co-operative movement. In some of the newly formed states of Europe, where war had practically wiped out industry there has been an exception to the principle of no state aid in the matter of reconstruction. Here the governments- have given at least temporary financial as sistance directly to the co-operatives." The important fact is that if government would give pupils in schools and colleges information and instruction in the co-opera tive method of business, as it does in the profit-making method of business, this is all that we need ask. No favors are ex pected. Co-operation wants only that it shall not be discriminated against. But as the matter now stands, in the United States, a boy graduates from school or college and knows of no other approved method of carrying on the business of the world ex cept the competitive profit-making system. The Commission recommends for further development of Co-operation in the United States: 1. Farmers' co-operative societies for marketing products and for joint purchase of farm supplies. 2. The simple, elastic and inexpensive system of rural credit societies of the Raif- feisen deposit and loan type, adapted to local conditions and needs, managed by the farmers themselves, limited to small areas, but with a centralized auditing system and central banks for diverting funds from one section to another as needed. 3. The distribution of electric power in rural communities through farmers' co-op erative societies has proved so advantageous CO-OPERATION 13 in Europe that a greater development of this means of furnishing light, heat and power to the American farmer is recom mended. 4. It is recommended that the establish ing of retail consumers' co-operative socie ties be promoted in the thickly populated rural districts of the United States. 5. Co-operative distribution of house hold coal is looked upon in some of the leading coal consuming centers of Europe (among them London, Manchester, Edin burgh, Glasgow, Hamburg, Prague) as the best solution found thus far for keeping down the high cost of household fuel. The English Wholesale Co-operative Society handled about two million tons of coal last year which it bought at wholesale prices and transported in its own coal cars from the mines to the coal depots of its retail societies. Similarly the distribution of motor fuel through co-operative societies is carried on with success in a number of foreign countries. 6. The distribution of milk by con sumers' co-operative societies in certain large cities of Europe has met with the well nigh universal approval of the populace. Unreasonable price increases have been pre vented thereby, and a supply of milk of good quality and handled along approved sanitary lines has been assured. The co operative consumers' societies, in addition to procuring a part of their milk supply from farmers' co-operative milk producing societies, operate dairy farms of their own. 7. It is believed that through the agency of co-operative export associations the mar ket for American farm products could be substantially enlarged in foreign countries. 8. In various foreign countries efforts are being made to bring about a greater degree of decentralization of power and ad ministration in co-operative organizations. A study of the possible drawbacks arising out of over-centralization would, it is be lieved, open the way for more efficient methods in the field of Co-operation. The fact that it is possible for the ma chinery of the State to create a Commission that can make such an enlightened and progressive report as this to the parliament of a great commercial nation must make us pause and prompt us to rejoice that govern ment after all possesses redeeming virtues which make it possible to face the realities of a world of economic progress. It is almost too good to be true. The next question we must ask is: How long will such an enlightened and progressive department be permitted to survive? Credit at Cost for the People THE Peoples' Banks or Credit Unions, as they are called in this country, pro vide loans to meet the needs of the man with ideas and of the worker with his labor power but who has little else to offer for security. They also supply credit to the farmer and tradesman whose business is too small to interest big banks. That is the reason they have increased so rapidly in the last few years. The need is there. The people are learning how to supply it. In New York State, up through 1923, 104 credit unions have been organized. They have assets of $8,506,265. They have made loans amounting to $7,584,453. Their membership is largely composed of civil service employees, clerks, etc. There are 95 credit unions in Massachu setts. Their assets up to October 31, 1924, were $6,297,241. Their loans amounted to $5,515,181. In Massachusetts, the mem bers are workers in the industries and pub lic service corporations—mill operators, telephone girls, government employees and small business folk in community groups. North Carolina follows with the next largest group of credit unions yet organized. Twenty-five credit unions with assets of $99,652 in 1924, made loans to their mem bers—chiefly farmers—amounting to $86,- 773. Their development has been marked during the past year. The Credit Union Extension Bureau, with headquarters in Boston, Mass., is do ing pioneer work in seeking to develop favorable legislation in the states where it is lacking. There are credit union laws in Rhode Island, Kentucky, North Carolina, Massachusetts, New York, Tennessee, New Jersey, New Hampshire, Vermont, Indiana, Wisconsin and South Carolina. In Utah, Oregon, Nebraska, Texas and Maine, there are laws which permit of limited types of credit union organization. In addition to the groups in the three states—New York, Massachusetts and North Carolina—there are scattered credit unions throughout the country, about 300 altogether, with total assets of at least $15,000,000. The members have used their savings to 14 CO-OPERATION CO-OPERATION 15 meet the credit needs of their fellows whose needs and character they know. Over $12,000,000 has been used in loans. Prac tically no losses (in some districts, a small fraction of one per cent only) have been sustained. These organizations are the foundation of the co-operative banking movement of this country. If, instead of being isolated groups, as they are, the membership were •made up of the same people who are the members of the substantial co-operative consumers' societies, we should then have the combination of capital and business, which some day, we must have to guarantee the strength of our movement. A co-operative bank in each community of organized consumers, all federated in a central national union, is the combination which gives strength to the strongest of the European societies. It should also give strenght to our movement as we develop. Educational Director for Franklin SEVERI ALANNE, Executive Secre tary of the Northern States Co-opera tive League, of which the Franklin Co operative Creamery Association is a mem ber, is to transfer his headquarters from Superior to Minneapolis in January and give the larger part of his time to the educational work at the creamery. He will continue his work with the Northern States League at large and will devote at least two days a week to the outside field; but the bulk of the work up-state and in Wis consin and Michigan will fall upon an assistant. This is an important move both for Mr. Alanne and for the Franklin Association. The former has been in Superior for eight years carrying on propaganda and educa tional work for Co-operation chiefly among the Finnish societies. The formation of the Northern States League was the first effort to get the Finnish and the American socie ties together. The present move of Mr. Alanne is one indication of how successful that effort was. On the other hand, Franklin has been going along for four years with no trained educational director in charge. Mr. Solem, Mr. Nordby, the Educational Committee, the Board of Directors as a whole, the Women's Guild, the Franklin Fellowship— all have contributed greatly to the educa tional guidance of this mammoth institu tion. But it has been the dream of several of these people, anxious to see a careful educational program planned and not able to give time to the work themselves, that sometime one of the bigger men in the American movement might come there and take charge of this work. They wanted someone who was thoroughly saturated with the history and theory of consumers' Co-operation and who was yet perfectly practical; and they believe they could not have found a better man than Sever! Alanne. The co-operators in other parts of the country will watch with much interest the educational work in Minneapolis this com ing year. Like all co-operatives, Franklin has had its internal disagreements due to lack of understanding or even of outright selfishness on the part of individuals; will these folks now reduce these sources of fric tion to the vanishing point and show the rest of us how it is done? The institution as a whole, like Topsy, more or less has "just growed," and its own momentum has carried it pell mell through difficulties and over obstacles that have wrecked many a less fortunate society in the United States. Will the directors, workers, and sharehold ers now find time, under Mr. Alanne's leadership, to study out the path they have been following and chart out a surer course for the future? Employees' Association at Sault Ste Marie THE Soo Co-operative Mercantile Asso ciation of the "Lock City" in Northern Michigan not only does a large business in groceries, meats and baked goods—this year its sales will reach the half million mark— but it has one of the best employees' organi zations to be found in the co-operative movement in America. Five years ago the men and women working in these stores and the bakery formed the Soo Co-operative Employees' Club. The employees themselves set aside a small percentage of their pay for use of their Club and the Association puts in an equal amount. The activities of the Club are chiefly recreational. On Tuesday, the 16th of December, the fifth annual banquet of the club was held in the Hotel Murry Hill. The employees, sweethearts and wives present numbered 110, and they enjoyed a full Christmas dinner, songs, speeches and dancing. Leo Le Lievre, the manager of the Association's business, acted as toastmaster and several of the directors spoke. The Soo Association is one of the few in the country that pays a wage-rebate to employees at the same rate that it pays a patronage rebate to shareholders. Directors' Page Start the New Year with a Co operative Audit THE League is beginning the year 1925 with a Co-operative Auditing Bureau all its own. This Bureau will be able to handle auditing work for co-operatives as far West as Ohio, as far South as Virginia, West Virginia and Maryland, and as far North as Massachusetts and Southern New Hampshire. The work will be so arranged that a definite period of the auditor's time will be devoted to New England, another period to Pennsylvania and Ohio, etc. Where it is necessary that books be audited in two different states at the same time, two men will be put into the field. Several large societies have already spoken for the services of the Bureau. During the first year the department will probably be run at a slight deficit, but when there are large numbers of societies in each state using it this deficit will be eliminated. The Executive Staff of The League has been planning this Auditing Bureau for many months. It was hoped that the work might be opened up by H. V. Nurmi, founder and present head of the Auditing Department of the Co-operative Central Exchange which does the work for dozens of societies in Wisconsin, Minnesota and Michigan. But the big business in those states cannot be turned over to a new lead ership on such short notice, so Mr. Nurmi must remain there during the first few months of 1925 and organize the work so he can leave it later and come to the New York office. Meanwhile the staff of the League has effected a very satisfactory arrangement with the Labor Bureau, Inc., of New York, accountants, engineers and advisers to labor unions and allied interests. Stuart Chase, Certified Public Accountant and head of the Accounting Department of the Labor Bureau, will take charge of the auditing work of The League during Mr. Nurmi's absence. The actual auditing will be done by Mr. Chase himself or by members of his staff. The following points are well worth the careful consideration of all Directors of co operative societies: 1. A bonding company will not make good on any losses incurred through theft or carelessness unless the co-operative so ciety keeps good books. 2. An audit conducted by an auditing committee elected or appointed from the membership of a co-operative society is not, in the eyes of the law, an impartial audit. 3. An audit conducted by a private ac countant or firm of accountants who are in business for their own profit is not the kind of an audit a co-operative needs. The aims of Co-operation and the aims of private business differ sharply. The ac countant for private business interprets pro duction or operating costs with a view to increasing profits to capital. The account ant for co-operative business interprets these costs from the viewpoint of savings to patrons. 4. There are special problems of organ ization bookkeeping in a co-operative busi ness that are quite unknown to private busi ness. The accountant who is accustomed to studying the special problems of the co operative and advising with the directors and manager on these problems is the man who is most valuable to the society. He brings to his work the accumulated experi ence gained with scores of other co-opera tives. The League has also worked out a book keeping system for co-operatives that are not able to keep their own books properly and therefore are not even ready for an audit. 16 CO-OPERATION CO-OPERATION 17 From the League Office Secretary's Report of the Activities of the Co-operative League for 1923 and 1924 1. During 1923 and 1924 The League has sent out 85,800 pieces of literature and 1,135 books. 2. Published two monthly magazines averaging 8,000 copies per month. 3. Issued a monthly practical bulletin to affiliated societies, some of the subjects being: "Income Tax for Co-operative So cieties," "Co-operative Societies and Coal Distribution," "Check Up That Overhead Expense," "Mobilize the Credit Power of Your Members," "Co-operators' Day," "Does Bonding Your Manager Really Pro tect You?", "Co-operative Corporations in New York State." 4. Sent out a News Service to 275 papers of the labor and farmer press. 5. Received and answered 5,903 letters asking for advice and information; and sent out 49,415 circular letters on routine work of the co-operative movement and 1,450 special letters to individuals. 6. Sent speakers to 251 meetings, in cluding two extended trips from the At lantic to the Pacific. 7. Supplied an organizer, educational director and Guild organizer to four so cieties for periods of time varying from six weeks to six months. 8. Conducted two evening courses in co-operation embodying educational sub jects, store management, administration problems, theory and survey of the move ment. 9. Sent one instructor to the Full-Time Co-operative Training School in Minne apolis in the autumn of 1923. 10. Conducted an employment bureau which supplied managers and other workers for co-operative societies. 11. Sent four delegates to the Inter national Co-operative Congress in Belgium, two of whom visited over 100 co-operative institutions in 10 countries and addressed audiences in Russia, Germany, England and Austria. 12. Sent accredited delegates to Co operative Congresses in Great Britain, Ger many and Belgium. 13. Interviewed in the offices of The League 1,452 visitors from the United States and 11 foreign countries. 14. Organized nine new Women's Guilds and sent special suggestions for socials, entertainments and members' meet ings to societies. 15. Distributed widely the new book "Co-operative Democracy" by Dr. War- basse and the American edition of Prof. Gide's "Consumers' Co-operative Societies" which was edited by Cedric Long. 16. Aided in the distribution of the following new books by American writers: Bergengren, "Co-operative Banking," and Mrs. Blanc's "Co-operative Movement in Russia." Conducted the sale and distribu tion of Sonnichsen's "Consumers' Co-opera- iton," and Harris' "Co-operation, the Hope of the Consumer." 17. Wrote 94 special articles for maga zines and newspapers. 18. Published the following new pamphlets: "A. B. C. of Co-operative Housing," "Model Lease for Co-operative Apartment House," "When the Whistle Blew" (a story by Bruce Calvert), "Co operative Homes for Europe's Homeless," "Homes to Live In," "Real First Aid to the Farmers," "Credit at Cost to the People," "A Better World to Live In," "Government that Begins at Home," "A Way Out," "The Co-operative Movement in Europe." 19. Gave written advice on problems of store management, organization and ad ministration; sent out technical advisors, and supplied accountants and managers where needed. 20. Gave legal advice to co-operative societies on incorporation, charters, taxa tion, and litigation. 21. Investigated and lodged formal complaints with state authorities against fake co-operatives, and warned societies of fraudulent and unsound enterprises. 22. Conducted the Fourth National Co-operative Congress in New York City, at which 180 societies were represented by 63 accredited delegates, and 18 labor and co-operative organizations which were rep resented by fraternal delegates. The following are some points of interest in the development of The Co-operative League and the movement in the United States: Three hundred and thirty-three societies representing a membership of 50,000 and a turnover of $15,000,000 are affiliated with the League. These constituent mem ber societies are conducting the following kinds of business and services: a sale of groceries, meats, dry goods, clothing, shoes, milk, coal, bread and other baked goods and furniture; and credit and banking, life and fire insurance, housing, recreation, restaur ants, laundries, health, schools and tele phone services. One of the affiliated socie ties does an annual business of $3,500,000 and 22 others have an annual turnover of more than $200,000 each. There seems to be no increase in the number of co-operative societies during the past two years except in the field of agri cultural marketing, credit unions and hous ing. However, there is evident a strength ening of many of the societies already estab lished and a rapidly growing consciousness of common aim and purpose among groups of societies in certain areas where formerly each society lived an isolated life. The progress of the Northern States' Co operative League is most encouraging. This district league has not only united scores of societies in the North-Central states for educational work, but has fathered the co operative training schools which turned out a second group of graduates in the autumn of 1924. The Educational Department of the Central States Co-operative Wholesale So ciety has done well in the face of great obstacles in building up an educational federation of 25 societies in Illinois and in getting "The United Consumer" estab lished as a monthly co-operative journal and in inaugurating a co-operative death bene fit society—The Consumers' Mutual Aid Guild. The six Jewish bakeries of Massachusetts have established a central federation and are now publishing every three months a co-operative journal in Yiddish. The Franklin Co-operative Creamery, the largest consumers' organization in America, continues to develop and is now doing an annual business of three and a half million dollars in the distribution of milk, cream, butter and ice cream. Farmers' central organizations affiliated with The League during the past two years are, The Nebraska Farmers' Union, The Kansas Farmers' Union, The Iowa Farm ers' Union, The Kentucky Farmers' Union and the Washington State Grange. The Ghent Congress— A Correction TV/T UCH of the time of the last Congress **•*- of the International Co-operative Alliance at Ghent was consumed by the dis cussion of the "Russian Problem." The Russians had offered various resolutions for the establishment of relations between the Alliance and the Moscow International. In the October number of CO-OPERATION, in tne article reporting this congress, appeared the statement that the British Co-operative Union offered a substitute resolution which was carried—397 votes for and 115 against; and the resolution of the Central Com mittee was lost. The General Secretary of the Alliance informs us that this is not correct. The resolution of the Central Committee on "Relations with Interna tional Federations of Trade Unions" was adopted unanimously after the British Union's proposal that the report be "re ferred back" had been defeated by 332 to 222 votes. The proposal of the Russians for the establishment of relations with the Moscow International was defeated by 424 to 179 votes. The British Union's resolu tion in favor of neutrality was adopted by 397 votes for and 183 against on the last day of the Congress. New Officers of the League THE Directors have elected (by ballot through the mails) the following as officers of The League for 1925: President, JAMES P. WARBASSE. Vice-President, ALBERT SONNICHSEN. Secretary, CEDRIC LONG. Treasurer, ADOLPH WlRKKULA. Index for 1924 Co-operation The index for Volume X of CO-OPERA TION (Year 1924), can be procured from the office of The League, 167 West 12th Street, New York City. :i 18 CO-OPERATION CO-OPERATION 19 REPORT OF THE TREASURER THE CO-OPERATIVE LEAGUE OF AMERICA STATEMENT OF RECEIPTS AND DISBURSEMENTS FOR THE YEAR ENDING September 30, 1924 BALANCE IN BANKS, October 1, 1923. RECEIPTS: From Membership: New .............. Renewals ................... Affiliated ....... ........... From Subscriptions: New .............. Renewals Bundle ...... Foreign From Literature, Books, etc.: Literature ............. Books ................. Transactions (Books) .. Associated Magazine ... From House, Rents, etc. .. From Donations ......... From Speakers' Fund ........ From Trust Fund Donation .. From Loans ................ From Miscellaneous Items: Accounting Forms .... Films .................... Postage .................. General Expenses Returned TOTAL RECEIPTS DISBURSEMENTS: For Membership and Subscriptions: New ......................... Foreign Subscriptions For Literature, Books, etc.: Literature .................... Books ........................ Associated Magazine .......... For House Upkeep ............... For Speakers' Fund ....... For Co-operation ...... ........ For Loans Returned .............. For Furniture and Fixtures........ For Expenses: Salaries ....................... Postage ....................... Stationery and Supplies ........ Printing and Addressing ....... Advertising .................... Telephone and Telegraph ...... Light and Power ............... Miscellaneous General Expenses 57.00 280.75 667.68 276.95 644.80 180.49 20.50 418.76 788.90 29.70 312.29 27.74 11.00 12.53 162.18 130.00 38.50 484.77 260.23 612.81 $11,094.34 727.20 235.60 690.67 194.68 256.05 122.35 320.46 TOTAL DISBURSEMENTS BALANCE $ 1,005.43 1,122.74 1,549.65 2,137.50 388.00 3,082.32 11,450.00 1,063.40 213.45 $ 168.50 1,357.81 832.87 1,857.64 1,212.21 2,396.13 111.00 13,641.35 $ 1,262.18 22,012.49 $23,274.67 21,577.51 $ 1,697.16 APFEL & ENGLANDER, Certified Public Accountants. PUBLICATIONS — OF — THE CO-OPERATIVE LEAGUE HISTORICAL PIT Copy Per 100 3. Story of Co-operation '.............$ .10 $6.00 7. British Co-operative Movement ...... .10 6.00 38. Co-operative Consumers' Movement in the United States ............... 39. Consumers' Co-operative Societies in N. Y. State, (Published by Con sumers' League) ................ 10. A Baker and What He Bated (Belgian movement) ..................... .05 .10 .10 TECHNICAL +.00 +.00 2.50 1.00 .65 4. How to Start and Run a Rochdale Co operative Society ................ .10 5. System of Store Records and Accounts .50 6. A Model Constitution and By-Laws for a Co-operative Society ........... .05 8. Co-operative Education. Duties of Educational Committee Defined.... .10 9. How to Start a Co-operative Wholesale .10 27. Why Co-operative Stores Fail ....... .02 2. Co-operative Store Management ..... .10 14. How to Start and Run a Women's Guild ......................... .05 15. How to Organize a District Co-opera tive League .................... .10 29. Credit Union Primer (By Ham and Robinson) ..................... .50 32. Application Blanks for Membership in a Co-op Society ................. 43. Co-operative Housing .............. .10 50. A B C of Co-operative Housing. ..... .10 51. Model Lease for Co-operative Apart ment House .................... .10 MISCELLANEOUS 16. Model Co-op State Law ........... .10 46. Producers' Co-operative Industries ... .10 11. Control of Industry by the People through the Co-operative Movement .10 12. Credit Union and Co-operative Store.. .05 33. Credit Union and Co-operative Bank.. .05 13. The Place of Co-operation Among Other Movements ..................... .15 34-. Co-operative Movement (Yiddish).... .02 30. "When the Whistle Blew" (Story, by Bruce Calvert) ................. .06 41. Farmer's Co-operation (By Benson Y. Landis) ........................ .15 42. Co-op Homes for Europe's Homeless.. .10 52. Homes to Live In.................. .05 53. Real First Aid for the Farmers....... .05 54. Credit at Cost for the People....... .05 55. A Better World to Live In.......... .05 56. Government That Begins at Home.... .05 59. Co-operative Movement in Europe.... .05 ONE-PAGE LEAFLETS (One Cent each; 50 Cents per 100; $2.50 per 500; $4.00 per 1,000). (1) Principles and Aims of The Co-operative League; (18) Do You Know Why You Should Be a Co-operator; (20) Why Loyalty Is Necessary; (21) Cost and Crime of Credit; (22) A Real Co-operator; (25) Resolutions Adopted by A. F. of L.; (26) Factory Workers Co-operate!; (28) Do You Know About Co-operation in Europe?; (40) Have You a Committee on Education and Recreation?; (44) What Is the Co-operative Movement?; (45) Schools and Stores; (47) A Man's Right to a Job; (48) Tips to Co- operators; (49) The Way Out; (58) Mating Co-operation Succeed in America. 1.75 1.25 MONTHLY PUBLICATIONS CO-OPERATION—(In bundle lots, $7.50 per hundred). Subscription, per year..................... .$1.00 HOME CO-OPERATOR, 4 pages.......... .$1.00 per 100 INTERNATIONAL CO-OPERATIVE BULLETIN. (Pub. by The I. C. A.).......... .Per Year. $1.50 BOOKS The following books are recommended as containing the best discussions of the modern Co-operative Movement. They may be ordered through The League; Bergengren, Roy F.: Co-operative Banking, A Credit Union Book .............................. $3.00 Blanc, Elsie T.: Co-operative Movement in Russia.. 2.50 Brightwill, L. R.: Animal "Co-op" Book—For Children ................................. Faber, Harald: Co-operation in Danish Agriculture, 1918 .................................... .15 2.75 Flanagan, J. A.: Wholesale Co-operation in Scot land, 1920 ............................... 2.00 Gebhard, Hannes: Co-operation in Finland, 1916.. 2.00 Gide, C.: Consumers' Co-operative Societies, 1921.. 2.50 Gide, C.: Consumers' Co-operative Societies, Ameri can edition and notes, 1922. Cloth, $3.00; paper bound .............................. .90 Hall, Prof. Fred: Handbook for Members of Co operative Committees ...................... 2.00 Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, $2.00; paper bound... .60 Holyoake: Rochdale Pioneers ................... 1.00 Howe, Fred C.: Denmark, a Co-operative Common wealth, 1921 ............................. 2.00 Jessness, O. B.: Co-operative Marketing of Farm Products ................................. 2.50 Madams, J. P.: The Story Retold. ........ .50 Nicholson, Isa: Our Story ..................... .25 Potter, B.: Co-operative Movement in Great Britain 1.00 Redfern, Percy: The Story of the C. W. S.. ....... 2.00 Redfern, Percy: The Consumers' Place in Society, 1920 .................................... 1.00 Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918 ............................. 1.50 Smith-Gordon and O'Brien: Co-operation in Den mark .................................... 1.00 Smith-Gordon and O'Brien: Co-operation in Many Lands, 1920 .............................. 1.50 Sonnichsen, Albert: Consumers' Co-operation, 1919. Cloth bound, $1.75; paper bound. ........... .75 Steen, H.: Co-operative Marketing .............. 2.00 Stolinsky, A.: The Co-operative Movement. (In Yiddish) ................................. 1.00 Warbasse, James P.: Co-operative Democracy...... 3.50 Webb, B. and S.: The Consumers' Co-operative Movement, 1921 .......................... 5.00 Webb, Catherine: Industrial Co-operation, 1917...- 1-50 Woolf, Leonard: Co-operation and the Future of Industry ................................. 1.00 Woolf, L.: Socialism and Co-operation. ........... 1.50 "The Co-operative Consumer" and "Co-operation," III (1917), VI (1920), VII (1921), VIII (1922), IX (1923), X (1924).............. 1.25 Transactions of Second American Co-operative Con gress, 1920 .............................. 1.00 Transactions of Third American Co-operative Con gress, 1922 ............................... 1.00 The People's Year Book, 1924. Cloth, $1.00; paper tjound ................................... -oO (Ten cents postage should be added JOT books which cost more than $2.00, and five cents tor the smaller books.) THE CO-OPERATIVE LEAGUE (Member of The International Co-operative Alliance) 167 West 12lh Street, New York An educational organization for teaching the history, principles, methods and aims oj the Co-operative Movement and for the promotion of Co-operation in the United States. Join The League and thus help promote the educational work of the Co-operative Movement. Subscribe for the Monthly Magazine and keep in touch with the Movement. Enclosed find $......... for D Subscription for CO-OPERATION - $1-00 O Membership in The LEAGUE - - $1.00 Name . .. Address Co-operative Central Exchange Wholesale Grocers and Jobbers, Bakers We supply goods to Co-operative So cieties ONLY. We are owned and con trolled by Co-operative Societies. We are organized to enable Co-opera tive Societies to do collectively what they cannot do individually. Co-operative Central Exchange Offices, Warehouses and Plant: Winter Street and Ogden Avenue SUPERIOR, WIS. Co-operators' Ltd. Mutual Fire Insurance Co. is now writing insurance in State oj Wisconsin. THE PRODUCER Issued Monthly Price 3d. If you want to keep in touch with business, organization, administrative affairs, and problems of the British Co-operative Movement, read THE PRODUCER. Published by CO-OPEKATIVE WHOIJ:SAI,E SOCIETY, INC. 1 Balloon Street, Manchester Post free 4 sh. 6d. a year. The Trade and Technical Organ oj British Co-operation. THE NEW SECRETARY'S LEDGER Just published by the Educational Department Central States Co-operative Wholesale Society (203 Converse Ave., E. St. Louis, III.) is the form for keeping the Membership Ledger of a Co-operative Society which provides ample and proper space for al] transactions with a maximum of effi ciency and a minimum of time, worry and errors. Send for Samples and Prices Co-operation in Scotland In no part of the world is Co-operation further developed, or more successfully practiced than in Scotland. If you wish to keep informed, read "The Scottish Co-operator" (.Published Weekly) Subscription: Year 12 sh.; Half-year, 6 sh. Address: 119 Paisley Road Glasgow Scotland The Madras Monthly Bulletin of Co-operation ROYAPETTAH, MADRAS, INDIA The only monthly on Co-operation in India. Special articles on Rural, Con sumers', Agricultural, Credit and Indus trial Co-operation; and Co-operation Abroad. Subscription Rs. 4/12 per annum. The Canadian Co-operator Brantford, Ontario, Canada The organ of the Canadian Co-operative Movement, owned by and conducted under the auspices of The Co-operative Union of Canada. Published Monthly 75c PER ANNUM THE HOME CO-OPERATOR A four-page magazine for use in co-operative societies. Issued monthly, in bundles, $1 per 100 Published by The Co-operative League Address: ALBEBT SONNICHSEN, Managing Editor Willimantic, Conn. (mam A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in voluntary association, produce and distribute for their own use the things they need. Published Monthly by THE CO-OPERATIVE LEAGUE 167 West 12th Street, New York City J. P. WARBASSE, Editor Entered as Second Class matter, December 19, 1917, at the Post Office at New York, N. Y., under the Act of March 3, 1879. Price $l.OO a year. VOL. XI, No. 2 FEBRUARY, 1925 10 CENTS Vital Issues Managing the Manager MOST co-operative managers serve their societies well. There are many societies in the United States that can thankfully say that they have managers who effectively serve the needs and the will of the members. But there is such a thing as the danger ous manager. There are two kinds of dangerous managers: the bad and the good. The bad managers wreck societies through their own inefficiency. The good often wreck societies through the inefficiency of the members. The history of co-operation in this coun try is strewn with failures due to the in efficiency of the manager. It has been one of the most common causes of failure. Now we are beginning to get efficient managers. And with efficient managers a new com plication is developing which may prove in the end quite as disastrous. The efficient manager may become "the whole show." The directors find that he knows so much more about the business than they, and can do things so much better than they, that they begin to regard themselves as super fluous, as a sort of honorary part of the business. Presently the manager is telling the directors what to do. Then the society is in a "highly successful state." Every body is happy. And everybody is boasting about "our manager." Before any decision is made the manager is consulted. After a while no decisions are made except by his consent or approval. He starts everything. He does everything. He carries through everything. Nobody, not even the directors, need to think about the welfare of the society. The manager does it all. With the recognition of the manager's superiority comes the tacit ac knowledgment of the inferiority, or at least the mediocracy, of everybody else. The manager at last becomes the benevolent autocrat. The directors and members sing to his tune. A visitor taking a look at such a society thinks he sees a successful organization. But his eyes deceive him. He is wrong. It only looks successful. A successful co-operative society is one which is not only fulfilling its present mis sion, but has the power to go on and per petuate itself. Such a society as described above lacks this element of endurance. Its eggs are all in one basket, and that basket is in one hand, and that one hand is sooner or later going to let go its grip. The one-man society, the society whose success is all in the hands of one person— the manager—is pretty generally doomed. If the manager moves on or is taken ill, or "goes bad," then the weakness of the society comes out. Then is revealed that the suc cess is not the society's success after all, but the manager's; and when he goes, it natu rally goes with him. This matter touches many of our so cieties. The manager must be thought of 22 CO-OPERATION CO-OPERATION 23 always as a temporary instrument. The so ciety must be thought of as the permanent thing. That means that the society must build itself into a self-perpetuating mech anism. The members must each feel their re sponsibility. They must attend meetings, discuss the problems of the society and de mand to hear and to be heard. The directors must direct and not be directed. They should take neither the manager's word nor anybody's word for everything. They should make themselves efficient and responsible. A successful co-operative society is one which is not dependant upon any indivi dual, but can spare any person and still go on. It contains within its membership the power that makes it survive. Its strength is its people. Its people are its strength. Homes and Children First REFORMERS of the present economic system have given their first attention to the factory, the field, and the workshop, as though work were the object and end of life. It is interesting to observe how they have always thought of reforming so ciety by beginning with the place where people labor. The Christian Socialists aimed to have "self-governing" work shops. The Social ists plan to capture the government and thus own and administer the industries. The Syndicalists would have the workers get possession of the shops and have in dustrial representation. The Guild Social ists have written volumes on the reorgan ization of society by changing the owner ship and the method of control of the ma chinery of production and distribution. Trade Unionism has been concerned especially for more wages for the workers on the job. The economic system, that does not start with the places where the workers labor, is Co-operation. This is a fundamental peculiarity of Co operation when we come to think of it. All of these other reforms are concerned with special and restricted classes of adult society. Not everybody is a plumber, a Trade Unionist, or a farmer, or even a worker. Co-operation includes everybody. Everybody is a consumer—men, women and children. Co-operation does not have to convert people to become consumers or to wait until everybody gets to be a consumer. Everybody is a consumer. No education or propaganda is necessary. In the home, too, men and women are nearest to being equals. This is not true of the workshop and factory. They are dominated by men. Women cannot have an equal voice there because industrial work is not women's permanent job. Work is men's permanent job. Women marry and become mothers. They leave the shop and go to the home and have babies. These they nurse and nurture. These functions interrupt women's life in industry, and like wise their influence and control in industry. The workshop cannot be representative. It largely represents the man worker. The home is the place where all types of human beings are represented—men, wo men, the young, and the aged. In the home above all places the interest of the children is best developed and protected. Co-operation is the only economic move ment that begins with the home. The home and the children are the centers about which it would build its new and free civi lization. When these are served, then we may turn to the factory and workshop and make them fit places for free people. The Things We Value Most "PEOPLE take better care of the things A they have worked for than of the things that come easily. The beautiful stores now in the hands of the co-operative societies in Leningrad and Moscow were confiscated from the men who created them. They are now in the hands of the co- operators; but it is obvious that they are not cared for or kept up as they formerly were. The stores of the Zurich society and of the Stockholm society are, next to these Russian stores, the most beautiful co-opera tive grocery stores in the world. But these Swiss and Swedish stores are well cared for—spick and span clean. Even though we may believe that the workers did create everything and every thing belongs to them, and all that, confis- acting things gets people into a bad habit. Everybody can always think of some reason why he has a claim on something in the possession of somebody else; and this mental state does not make for order. It is a sad sight, these once beautiful stores in Russia, now unclean and shabby, with all their "tarnished tinsel." If an in dividual had struggled and worked and saved to buy such a store from its former owner, one can be pretty sure he would be inclined to keep it up, ship shape. A group of co-operators would do the same. But a fancy personal possession, confiscated by a government, is no longer owned by a tender and solicitous master. Obervation is teaching that, even though people may be entitled to a thing, it is better to work for it and acquire it through the accepted channels of purchase than to get it for nothing. The things we treasure are the things acquired by effort, and the effort is good for us and makes us better and more considerate masters of property. J. P. W. Government Aid Resented PRESIDENT COOLIDGE in his speech to the National Council of Farmers' Marketing Association early in January, told these leaders of hundreds of thousands of farmers that they must help themselves to prosperity; the Federal Gov ernment could do very little to aid their co-operative program. The man who wrote that speech for Mr. Coolidge knew what he was talking about. But is it not strange that no such advice came from the Repub lican leaders before election in November? Previous to election day the politicians promised the farmers all kinds of govern ment assistance! The Vice-President of this National Council of Marketing Associations, Mr. Carl Williams, President of the American Cotton Growers Exchange, repeated these sentiments in a speech in New York a few days later. "An economic remedy for an economic problem" is Mr. Williams' ad vice. "We have no desire for paternalistic legislation. . . . We believe in self help. . . . Help for the farmer cannot come from the Government, but must come from an organization controlled by the farmers themselves. Government . . . relief is entirely out of order. The meeting in Washington was the first time that the or ganized farmers of the country have gone to the Government and told Congress to keep its hands off." Mr. Williams went on to say that the co-operative movement opposed political remedies for economic ills. Those sentiments are excellent. We re joice to find among the leaders of the large commodity marketing associations such sound common sense. And we are all the more ready to congratulate Mr. Williams and his fellow workers on these sentiments, because we disagree with them on others. For instance, Mr. Williams lets it be known that the co-operative marketing movement needs no legislative help because it stands in right with Wall Street and can get as good terms there as any other large borrowers. We should hate to get caught making any such statement about the con sumers' co-operative movement; first, be cause it would not be true; and second, be cause we should be very much ashamed to be classed with many of these large borrow ers from Wall Street; the militarist govern ment of France, the banking interests that are ruling over the peoples of certain Cen tral American countries, the mine operators of West Virginia, who keep so many gun men on their payrolls, the child-labor advo cates among the textile mill-owners. Can't we make it real self-help? With out going either to Washington or to Wall Street? Can We End This Economic Warfare? \ CCORDING to studies made at the ^"*- State College of Washington, the gro cer gets only 38 cents out of the average dollar spent by the consumer. According to students of agricultural economics, the farmer gets only 33 1/3 cents of the dollar which the consumer spends for farm products, and the middle man and retailer gets the rest. Then we have the banker or manufac turer who complains that he is not getting his share of the consumer's dollar. And the labor unionist has statistics to show that his share of the consumer's dollar should be much larger. They represent four classes, all interested in profiting from the consumers, and all fighting one another. And yet each one of these men is, as an individual, a consumer himself. Can't we get the individuals organized into the one movement that includes them all and then forget the conflicting classes? C. L. 24 CO-OPERATION CO-OPERATION 25 Co-operative Banking farmers and laboring people to the neces sity of a national co-operative banking system. Co-operative Banking Legislatio: Why We Need It By SMITH W. BROOKHART United States Senator from Iowa CO-OPERATIVE credit is the founda tion stone of the whole co-operative system. No co-operative system can reach a stage of permanent soundness and success unless it has its own co-operative banking and credit department, including reserve banks and all under its own control. Co-operative credit is also the one thing that will federate and unite all co-operative enterprises, whether of producers or of con sumers. Co-operative credit is also the easiest to bring to success of any of the co-operative enterprises. The reason of this is because there is always a market for credit. The product of the credit system always sells it self. If it is loaned safely so it will be re paid, it will be a success from the start. The labor banks are a noted success, and farmers could organize co-operative banks as successfully as labor. They can all unite in a co-operative reserve system, and then a great co-operative reserve system will be established which will give sound financial advice and support -to every other kind of co-operative enterprise, whether it be of producers or of consumers. This means a mobilization of the thrift savings of pro ducers and consumers of such magnitude that it would be possible to reorganize in dustrial life in the United States and change it from the competitive to the co operative method. In America we have started most of our co-operative enterprises without this co operative credit support, and many of them have failed. They will continue to fail, per haps, in as great percentage as competitive enterprises fail until the co-operative credit system is organized. A United States Sena tor said to me recently that 92 per cent of the men in competitive business fail. This is an appalling statement if true, and I do not doubt the truth of it. There is no de fense of a system that is 92 per cent failure. On the other hand, the great co-operative system in Great Britain now supported by a fine co-operative credit system, is almost a complete success. Such a reorganization of business in the United States would be a great advance toward stability, enterprise, and success. It would be better for business itself; and the business men of our country who shut their eyes toward this possibility are short sighted. The strangest part of this story is that we have no laws in the United States that even permit the organization of a co-opera tive credit system. There are laws which permit certain kinds of mutual banks, but there is no way of federating them into a system, and nearly all of these laws leave out some of the basic elements of co-opera tion. The labor banks now being organized are not co-operative nor do they have co operative charters. They cannot get such a charter under either national or state laws. They are forced to organize as profit corporations and operate under co-operative or partially co-operative by-laws. This is unjust. The farmers and laboring people have the inherent right to organize their savings in a co-operative banking system under their own control, but there is no law anywhere giving them such permission. The banking laws of the United States and of the states are all a gross discrimination against the rights of everybody who believes in co operation. If co-operative banks had been author ized by Congress at the time the National Bank Act was passed, I have no doubt that the vast majority of banks in the United States would today be co-operative. The value of such a development would be be yond computation. All of this has been de nied the common people of the United States because their banking laws have been dictated by the dominating commercial interests. Agriculture is the biggest business in the United States, and it fits well into the co operative banking system. Because of the short time loans and the long time turn over it does not fit well into the commer cial banking system under our laws, both state and national, it is denied the right to have a banking system that would fit the needs of agriculture. I think the next great economic develop ment in the United States is to arouse both Banking Practice in Arkansas By JUDGE JAMES E. HOGUE How Banks Practice Law "LJERE in New York you have a statute *• -*• prohibiting corporations from engag ing in the practice of law, but in the larger cities of Arkansas, every trust company has its trust officer and they do more practice in the Probate Courts than any lawyer in the city does. They examine abstracts and pass upon titles, write deeds, mortgages, wills and other instruments and upon an assumption of knowledge give legal advice to trusting widows and credulous old men. Whether this advice is right or wrong, it is generally accepted and as a result of it, we see large estates passing through wrong channels and the rightful heirs deprived of their just and lawful inheritances. Some of these banks and trust companies employ attorneys who never tried a case unassisted and who never drew a paper that measured up to the standard of good plead ing, and they hold these men up to the public and their customers as lawyers of first class ability and advertise their busi ness with a flourish of trumpets of high sounding advertising rhetoric of the type used in the exploitation of Peruna, Liver Pills and Tanlac, and then under the guise of confidential advice throw all legal busi ness of their customers to these attorneys, so that there is no longer a race of merit between the lawyers. Real Estate and Insurance Business In New Hampshire banks and trust com panies are forbidden to engage in the in surance business, and in Maine the statute provides that no bank or trust company shall act or do business as administrator or guardian, but in Arkansas they have com pletely usurped the real estate and insur ance business and are driving private sales men of real estate, private rental agents, and private insurance agencies out of busi ness. No matter what gift or talent a man may possess as a salesman of real estate, or insurance, there is no longer any room for success in his business unless he can secure a position with a bank or trust com pany and such a position is usually an agree ment by which he is to divide his commis sions with the bank or trust company. Still the banks are not satisfied, and to com pletely annihilate all private real estate agencies, they secured the introduction of a bill in the last legislature to completely wipe out all competition in the real estate busi ness under the name and guise of a bill to suppress "curb stone real estate agencies." How Loans Are Made When they make a loan they take from the borrower a deed of trust made to the company, or to one of the officers of the company, as trustee. They always charge the borrower a heavy commission in addi tion to the interest. The property by which the loan is secured is required to be in sured in an insurance company for which they hold an agency. A fee is charged for the examination of the abstract of title by their attorney and another fee is charged for writing the papers and another for tak ing the acknowledgment, and still another for satisfying the record when payment is rrjade. If he falls behind in the payment of his interest and applies to them for a small loan for a short time, they refuse to make the loan. The deed of trust is then foreclosed and the trust company buys the property, often at a price less than the amount of the debt, takes a judgment against the borrower for the balance, sells the property to another party at an ad vanced price and charges the purchaser a commission for making their own sale. Thus they act as borrower and lender, prin cipal and agent, buyer and seller, all in the same transaction. They fix and control the rental and sales values of real estate, raise rent with any increase of wages that a tenant may get, and create an inflation or a depression in values at their will. If a borrower incurs their ill-will, they demand the pound of flesh and close him out and force him into ruin. If a lawyer, in the course of his prac tice, succeeds in overturning one of their transactions, he is forced to combat their resentment the balance of his life. Legislation The banking legislation and the condi tions resultant from it has had the effect to stagnate every line of business. The business man is forced to stand in the favor of these banking institutions for they are CO-OPERATION the only source and means of credit!, Farms have been deserted, the fields have grown up in weeds and bushes, the fences have rotted down and the houses are fallen into a state of decay and ruin. Thousands of families have abandoned their once happy homes and have flocked to the cities and towns in search of some employment from which they can earn the primitive and ele mental wants of man, their daily bread. The spirits of the people have been sub dued, their hopes blighted, their ambition dwarfed and depressed and their individu ality destroyed. They have been made to feel that they are slowly sinking into a state of servile slavery from which there is no hope of redemption. More than two- thirds of the homes in my state are either mortgaged or rented and tenantry is in creasing. Through their little savings de posits they have been supplying the means of their own oppression. The Light in the East There is now a light in the East. Massa chusetts, the very state in which the mon opoly of the business of banking had its origin, has developed a remedy through the co-operation of the people themselves. We should have in every state a Superintendent of Co-operative Associations, different and distinct and in no way connected with the banking department. A dual system of banking is just as important and is just as necessary as is a dual system of govern ment. Give us just what has been given the banks and trust companies. Give us a department headed by a man trained and schooled in the art and science of co-opera tion ; make any exactions of us and throw any and all restraints around us that you make and throw around the commercial banks and trust companies. Best Statutory Form for Co-operative Banks By R. INGALLS Author of "Rural Credits" THE progress being made by co-opera tion in the United States has caused its statutory form to loom up as a very im portant matter. There are two basic forms of incorporation, each with its varieties. One is the joint stock company. The other is the association known in some states as the membership corporation, and originally used only for objects in which the organ izers and their successors sought no profit for themselves. A joint stock company is a corporation with a fixed fund divided into shares, all equal in denomination and in respect to the rights, liabilities, and voting power of the holder. Under the common law creditors of such a company could sue any stock holder for its debts, and naturally the stock holders resorted to legal tricks to disprove ownership whenever trouble arose. This interfered with financing, and so in mari time countries, when foreign trade opened, merchants obtained charters from their governments which relieved the stockholder of direct liability. The strong and wealthy alone could get charters and they usually got monopolies and special privileges, too; and all this enabled them to consolidate their resources, command investment capi tal easily, seize the best opportunities for business, oppress the working classes, and make the consumer pay the limit. This went on clean through the industrial revo lution which began in the eighteenth cen tury when steam power supplanted hand power. Companies ceased to be habitually created by special charter after the enactment of general incorporation laws, which started in the United States in 1811 and in Eng land in 1844. But the joint stock company remained as the chief form for business, with stockholders having no legal or moral responsibility personally for its acts, though casting votes and receiving dividends in proportion to the amount of its stock they owned; and this evil fastened capitalism upon the world as it exists today. When these laws were being formulated, if some body had revived the idea of the old guilds and given it a modern dressing, perhaps industry by now would have been demo cratized. But the guilds were forgotten. Governments opposed the formation of large associations without special permit, while politicians were fighting labor organi zations instead of favoring them. Business had come to be looked upon solely from the viewpoint of the money invested in it or to be gotten out of it. Further, business was then largely specu lative, so rapidly had colonization of new lands and various sorts of inventions been following one after the other. Investors had to be protected from their own credu lous cupidity, and business regulated for CO-OPERATION 27 taxation and other governmental purposes; and for these reasons the joint stock com pany seemed satisfactory to the early legis lators, few of whom knew anything about economics or the possibilities of co-opera tion. In spite of the prevalence of the joint stock company in business, banking, and finance, there are great fields, however, from which it has been practically excluded. In the United States the building and loan associations, which now have 6,864,144 members and $3,342,530,953 of assets; the fraternal life insurance societies, with $340,485,532 of assets and $8,687,939,447 of policies in force; the old line companies, or most of them, with $8,652,318,490 of assets and $50,290,710,180 of life insurance in force; and the mutual savings banks, with 10,057,435 depositors and $6,904,- 825,000 of assets, are of the pure associa- tional form without any capital stock, and, excepting the savings banks, are also co-op erative. The 5,424 farmers' associations, which did over $2,200,000,000 of co-opera tive buying and selling last year are mostly of the non-stock type. The Associated Press, which distributes the news of the world twice a day throughout the land is a non-stock co-operative association; and its constitution and by-laws are one of the very best examples of how a membership cor poration can be co-operatively used for economic purposes. These facts and figures demonstrate the adaptability of the non-stock association, or membership corporation, for almost any co operative activity or undertaking. Its elas tic structure is admirably suited to the numerous and changing membership usual in labor unions and farm organizations; and in this it widely differs from the joint stock company, in which the fixity of capital and the property rights of shareholders make it entirely serviceable only to in vestors. There is no inherent reason why a bank should have a fixed capital stock, even though it carries on discount and de posit operations. The only funds owned by several of such banks in Italy, the oldest in existence, are what came from donations and undivided profits. The credit unions afford a good base, if only their powers could be enlarged to include all banking functions, and their organizers made to realize that compensa tion where due should be paid in liberal dividends and salaries as well as in philan thropy. True, the credit unions all issue shares. But these shares may be surrendered by the member or called in by the union. Hence, they do not create a fixed capital stock, nor interfere with the pure associa- tional character of the unions. It would be well, however, to permit unions to be in corporated without shares. Thoughts on Banking By C. L. ' I AHE story of Dillonvale, Ohio, deserves wider publicity than it gets. The New Co-operative Company not only has a block of buildings, with seven stores in Dillon vale and neighboring towns, but it does a business of almost $550,000 a year, prob ably the largest co-operative store business in the country. But the main outlines of this picture are in some respects less interesting than the details. The local bankers and the Rail road Company rent their quarters from the co-operators. A simple fact, but most signi ficant and illuminating news for our good liberals who claim that all the big co-opera tive achievements are confined to Euro pean countries. For these simple facts call up in us some interesting thoughts. The bank has made an effort to sell to the co-operators, but the co-operators are hesitating. Why does this banking company want to sell out to the Co-operative ? Have the directors lost all sense of the dignity of their position? Or is there no money in banking in the town of Dillonvale and vicinity ? There is as much money in banking in Dillonvale as in other parts of the country. But the Co-operative has so won the loyalty of those farmers and miners that they have put most of their savings directly into their own business in the form of loan capital (to the tune of some $64,000), rather than turn it over to the private money lenders who would loan it to the Co-operative only after they had deducted a fat middleman's fee for themselves. These co-operators are all for cutting out the commission mer chants dealing in that most intangible of commodities known as credit. Thus it is not at all surprising that the Directors of the Co-operative hesitate to take over the local bank. So long as the co-operators are already doing their banking directly 28 CO-OPERATION through the store and so long as they already own the bank building, why should they "buy out the bank"? The New Co-operative Company stands as a demonstration to this country that money and banking are not such great shucks after all, and that there is no Divine Law which ordains that the Banker shall rule the world of business. In at least one community in the United States the co operative society is so highly successful that it is driving the profit-seeking bankers to the wall. It is not surprising that this banker should be looking for a job with the co-operative, which already has his busi ness. Contrary to popular belief, we do have co-operative banking in this country. Thousands of men and women are doing a brisk banking business with their own co operative societies just as they do it at Dil- lonvale. Letters From Abroad Russia, the Laboratory of Social Experiment By J. P. WARBASSE E went into Russia from Finland on the first day of August, 1924—my wife, two sons, a daughter and myself. The three young people were of the age about to enter college and were possessed of a fair understanding of economic and social facts. Russian officials in America had ad vised against taking them into Russia. Much can be learned by going against official advice. We have nothing to regret. When one reaches the Finnish-Russian border at Rajajoki he knows that some thing has happened. Things become differ ent. The people look differently. Things are done differently. The everlasting bundles and the odd trunks and bags of the few people crossing the border were strongly in evidence. More people seemed to be interested in getting out of Russia than in. The crude railroad station on the Russian frontier is in charge of young communist officials. I had a letter to the "Commandant" of the station from the Russian Consul at Helsingfors. It is a good thing to have a letter from the right person to the right person in Russia. He was instructed by the letter to telephone to Leningrad (Petrograd) to Centrosoyus (the Ail-Russian Central Union of Co operative Societies) to meet us at Lenin grad. He was not able to get the connec tion so he sent a border interpreter on the train to Leningrad with us. That was mighty nice. And the young red guard who was assigned to this duty was a good com panion. He spoke seven languages, and he said that the language he had the least occasion to use was English. When we ar rived at Leningrad, he telephoned to Cen trosoyus. The next morning early a repre sentative of that organization called on us at our hotel to place himself at our service. This gentleman was one of the secre taries of the northwestern division of Cen trosoyus, a man of fine culture, charming personality, and education. He was a graduate of a Swiss University and had been a professor in Russian and Finnish universities before the Revolution. With the automobiles and carriages of Centro soyus he went with us to visit the co-opera tive industries and such other things as we wished to see, always taking along the man who knew about the special thing we were visiting. Our experience both in Leningrad and Moscow was associated with the most considerate and delightful courtesy at the hands of the officials-of Centroysoyus. Business in Leningrad and Moscow is active. Most of the shops are open and display for sale every kind of attractive goods. There are three distinct types of distributive business: private profit-making merchants, stores run by the city govern ment, and the co-operative stores—repre senting capitalism, socialism and co-opera tion. The private shops are having a hard time. They are discriminated against in many ways. All buildings belong to the government and the private merchant has to pay much higher rent than either of the other two. Then he is taxed, and he pays more for the house where he lives, and for his children's schooling, and for most everything he buys. The municipal stores and the co-operatives should have no trouble in competing with him. But he CO-OPERATION 29 manages to exist. He offers special kinds of goods, finer things, or things that he has gotten cheaply by some hook or crook, and he struggles along. The president of the Moscow Co-operative society told me that every day private merchants come to him and beg the society to buy them out and give them a job in the co-operative move ment; and I suppose the same is true of Leningrad. The Leningrad Co-operative Society (PEPO) is a big business. I am told it has seven directors, is governed by delegates elected by the members and that this dele gate body meets twice a month. Meetings of the general membership are held in dis tricts at various times. The central offices of the Society occupy a huge palace, once the residence of a grand duke, and later the offices of the Russian Lloyd. In this central office are 300 employes. Before the Revolution, St. Petersburg was one of the great capitals of the world. The wealth of its ruling class was conspicu ous. Some of its shops were truly palatial. New York City had no retail grocery stores to compare in ornate and expensive splendor with that of St. Petersburg. These beauti ful buildings, with ceilings thirty or forty feet high, with their bronze statuary, carved wood interiors, elaborate plate glass show cases, tiled walls, cut-glass and bronze elec tric lighting fixtures, wine cellars and every sign of extravagance, have been turned over to the Co-operative Society. Take the finest of these on the Nevsky Prospect—just around the corner from our hotel—it pays 1,700 roubles per month rental to the city, it has 18 clerks and does a daily business of 5,000 roubles. The rouble exchanges at the rate of fifty-two cents United States money. An idea of prices may be judged from eggs—ten eggs sell for 32 kopecks; that is about 20 cents a dozen. Butter, 50 kopecks (25 cents) a pound. One sees much candy, too, displayed in these shops. Another fine grocery store of this type has a turnover of 10,000 roubles daily, (over $5,000), and the business is cash. The overhead cost is three and one-half per cent of the turnover. There are other gro cery stores with even larger turnover. The Leningrad Society has 35 shops. Among these is a series of shops in a great glass- covered arcade running through a block. Here are stores of every kind. The prices of manufactured goods are high. Clothing, for example, costs as much as in New York. The goods are of average quality. Practic ally everything displayed—dry gods, cloth ing, furniture, hardware, etc., is made by the industries of the local co-operative so ciety, by Centrosoyus, or by a government factory. At Moscow we were met at the railroad station by the automobile of Centrosoyus and taken to the hotel of that organization. The Centrosoyus has its head office in Mos cow. Here is a busy center. In August, 1924, Centrosoyus was holding a conference of its representatives. Delegates were pres ent from many parts of the world. The local Moscow district society, the Moscow Central Union of Consumers' So cieties (M S P O), the president told me, has 800,000 members and a daily turnover of 300,000 roubles. These figures are steadily increasing. There are 4,000,000 population in the Moscow district. It has 400 different establishments. Among these are 30 bakeries. The stores give the mem bers from 4 to 15 per cent discount at the time of purchase. This is in place of a sav ings-return. I was told that the co-opera tive stores sell at about 2 per cent cheaper than the stores run by the city government. There are large and attractive stores, as well as small shops in all parts of the city. Practically every sort of distributive business is carried on. We visited not only stores, but restaurants, bakeries, and other productive plants. From both cities we made journeys out into the country and visited country villages. The co-operative store is found everywhere. The great co-operative organization of Russia is Centrosoyus. Its yearly sales are estimated at over 200,000,000 roubles. The turnover of its member societies in 1923 was over 800,000,000 gold roubles. The president is L. M. Khinchuk. The officers of this organization are earnest men, working hard to make their business suc ceed. They are men of a high grade of culture and ability. There is probably no co-operative organization in the world whose officers put in so many hours of work each day. The organization consists of the Board, General Departments of Management, De partment of Organization, Trading De partment, Special Departments, Subsidiary Departments and Staff Establishments. Each of these is subdivided into many di- 30 CO-OPERATION CO-OPERATION 31 visions. There are offices for foreign trade in eleven foreign countries. Centrosoyus imports some twenty-three different articles from acids and agricultural machinery to rosin and typewriters. It exports twenty- two articles, from bristles and butter to timber and wood. A large trading business is done with the British Co-operatives. Its membership is composed of some 17,000 consumers' societies with over 7,000,000 members. It has many warehouses and twenty-five different manufacturing indus tries. It conducts a large insurance depart ment and many non-commercial activities. Among the latter are education and propa ganda. Its library contains 75,000 volumes. It conducts hotels and boarding houses for its employees; also a forty-bed hospital, with a staff of six specialists and thirty-four as sistants; an analytical laboratory; an X-ray laboratory; ambulance stations; a dental clinic; a rest house in the suburbs of Mos cow and a sanatorium in the Crimea. It has large warehouses in many locations throughout Russia. In a warehouse at Len ingrad we saw stored many thousands of tons of grain and other food commodities. At one time we saw five tank cars of sun flower seed oil—used by the Russians much as we use butter—run from the cars into great storage concrete reservoirs. It is difficult to judge the factories of the local societies and of Centrosoyus by the standards of the West. Industry is differ ent in Russia. Furthermore we must bear in mind that Russian industries have passed through a terrible ordeal. In the Russia of the Czar the workers were badly exploited by hard corporations. Then came the col lapse of the old regime. Then chaos. Then the Kerensky regime, followed by the Bol shevist government. Then came counter revolution and the war made upon Russia by the Allies. And running through it all was poverty, famine, great suffering, and the disorder which was the price of hun dreds of years of monarchistic corruption and oppression of the people. The co-opera tors have created some industries of their own, and they have rented and bought some plants from the government. These plants which were formerly capitalistic factories were found in bad condition. Many had been closed for years. The machinery and equipment were fallen into decay. The buildings were delapidated. But the co- operators have taken hold of them and got them going. Most are not running full capacity. Some are producing more than they did in the old regime. Let us look at a few of these factories that we visited. The brewery at Leningrad, with 1,500 employees, turns out 50,000,000 bottles of beer a year. It pays the govrenment 300,- 000 roubles rent for the brewery and 2,000,000 roubles taxes. The workers have a restaurant where they get a big dinner with soup and meat for 20 kopecks (10 cents). A band plays at dinner time. The workers have a theater where concerts are given every other night, and twice a week an amateur play. Over the stage is a legend reading, "Up with Socialism." There is another brewery equally as big. A soap factory was formerly a private whiskey distillery. It is now badly run down, but producing coarse soap at about 50 per cent of its capacity. A macaroni factory, where 80 per cent of the workers are women, barefooted and singing at their work, turns out a good- looking product. Bakeries producing brown bread, white bread and fancy cakes, are many. The bakers' wages are from forty to seventy roubles a month. The manager gets one hundred and seventy-five—the same wages as the director of a society. The lowest paid unskilled worker gets forty roubles ($20). In Moscow the M S P O sausage fac tory was established in a plant that had been closed for six years. When we were there it had been running only three months, but was operating full capacity with 220 workers, and turning out 10,000 pounds of sausage a day. In the M S P O printing plant are 210 workers. The linotype machines and presses seem to be up-to-date. On the walls one sees signs which translated read: "Do not give the private traders profit; buy only in co-operatives," "Co-operation is a method of carrying on war against high prices," "Co-operative kopecks protect the farmers' rouble," etc. One of the best plants we saw was the Moscow Society's candy factory. It has 1,500 employees and turns out ten tons of candy daily. This was a private capitalists' candy factory with 3,000 workers, before the revolution. The same technical super intendent is still in charge. Before the Revolution, the superintendent got 1,000 roubles a month wages and workers aver aged 20 to 30 roubles a month; now he gets 250 roubles a month and workers average 40 to 50 roubles. The cost of living is higher now than then. This factory also makes perfumes and fancy soaps. A sweet cracker factory had been closed for ten years; when we were there it had been running four weeks. But everything was in good shape and the products were fine. The candy and chocolate factory ad jacent to it had made 150,000 roubles profit in 1923. Some government factories are losing money, I was told, but the co-opera tive factories are not. A Centrosoyus soap factory at Moscow employs 100 workers. Before the war as a private plant, it produced 360 tons of soap a month; now under the same superinten dent it turns out 575 tons a month. There are many co-operative restaurants. A meal with soup, meat, potatoes and bread, yielding 1,400 calories of nutriment, can be had for 25 kopecks, (13 cents)— children 15 kopecks. Everywhere, everybody said that the in dustries were improving, and it looked to me as though that is true. They are putting in new machinery and getting experience. But these Russian industries have a long way to go. The great majority of factories which we visited would not compare in cleanliness, orderliness, or efficiency with the co-operative factories of other countries. The same is true of the stores and other businesses. Perhaps it is because Russia is different and the Russians do things differ ently. One thing is striking: the workers even in the piece-work clothing factories do not work as hard nor as fast as in the western countries. If I were employed in an indus try, I should prefer the Russian leisurely method. It surely is not so hard on the worker as the intensive method. When I visited a big plant and engaged in a dis cussion with the superintendent, it was in teresting to see the workers one by one leave their machines, join the group and listen to the conversation. Occasionally a worker would answer a question that would throw some light on the subject. When I left they went back to their machines. That may be called human industry. The "efficiency system" which western industries employ is the machine system. If I were a bricklayer I should refuse to lay bricks un less I could stop now and then and look up at the clouds or a passing bird. That is the reason I would not be a good bricklayer to lay bricks for somebody else. I would only be a good bricklayer when laying bricks for myself. But this humanizing of industry keeps up the cost of living in Russia. Many industries are losing money. Russia is not surrounded by a wall. Her industries have to compete with those of the outside world. If things can be brought in from foreign countries cheaper than they can be made in Russia, the Russian indus tries are demonstrated to be unprofitable. This is a serious fact and the Russians know it. They a,re doing much to introduce more efficiency in industry and thus to bring down costs of production, but it is a difficult problem. There is everywhere a need also of efficiency in business administration. The Russians are idealists, artists, poets, philan thropists, but they are not efficiency engi neers. When I saw a factory without broken windows, that looked clean and orderly, I could guess that it had a German technical engineer in charge, before I stepped in the door. The Russian standard of cleanliness and order is different from the standard in western lands. One of my most amazing discoveries in Russia was just this. I never could get used to it. A Russian would open the door and say, "See how nice and clean and systematic and orderly this is!" And to my eyes at least it was not nice, it was not clean, and it was unsystematic and disorderly. At first I thought it was a joke. Then I discovered that the Russians meant it, and I realized that it was a much more serious matter. This is purely a question of relative values. The surgeon before the Listerian era looked at his hands and said, "They are clean." Now when he looks at the same hands he says, "They are dirty." The sur geon was just as good a man then as he is now. He has not changed; only the stand ard of what constitutes dirt has changed. We think Queen Elizabeth lived in filth; she thought it was clean and nice. It is hard for the westerner to under stand a system where hundreds of serving people sit by office doors to let you in and out; and just sit and sit; while cigarette stumps accumulate in the corners, and the windows are dirty, and the curtains torn, 32 CO-OPERATION CO-OPERATION 33 and the chairs broken. But I do not criti cize this. How can I? I do not under stand it. What is disorder to some people is temperament to others. The dirt in Rus sia is not dirt at all; it would only be dirt if it were in Copenhagen, Amsterdam or Basel. That this is not a policy or a fixed habit is evidenced by the fact that here and there one does see a neat, orderly and clean office; but it is exceptional. Maybe we are wr.ong. Perhaps, we are unnecessarily fussy. The Russians may be right. But they have to do buiness with the dominant western world and face things as the dominant world sees them. This being the case, if Russia, with its great natural resources and man-power, could connect with Germany to furnish punctilious organizers and efficiency engi neers, a combination would be effected that would astonish the world. Modern methods require that things shall be in sys tematic order, that appointments shall be kept on the minute, that business shall be done promptly and with despatch, and that talk and hopes do not take the place of the deed. One can see in Russia every day that it is literally true, that "fine words butter no parsnips." There are many questions in which I find myself in disagreement with my Rus sian friends. I may be wrong in all of them. It is impossible for me to under stand how men and women at work at their desks can exercise their highest effi ciency and at the same time smoke the number of cigarettes and drink the quantity of tea that the Russians do. I just do not get it. They tell me, "We have to smoke because we work so hard." That reply only leaves me more confused than before. When I suggest the cigarette and the tea spoon, in place of the hammer and sickle, as the symbol of the Soviet Republic, they seem not to understand me. It is difficult for people of different temper and methods to understand one another. ( To be continued) News and Comment Second Co-operative Training School THE Co-operative Training School or ganized by the Northern States League ran for six weeks from November 3rd to December 13th. Fifteen students were in attendance and courses were given in Theory, Principles, Methods and History of Consumers' Co-operation (A. W. Ran- kin and S. Alanne, Instructors) ; Organiza tion, Administration and Management of Co-operative Stores (S. Alanne, In structor) ; Commercial Arithmetic (S. Alanne, Instructor); Bookkeeping (H. L. Brown and H. V. Nurmi, Instructors) ; Administration and Management of Co operative Industries (Edward Solem, In structor) ; and Business Correspondence (Louis J. Duncan, Instructor). Half of the time was given to the study of Book keeping, the other half being divided equally between the theoretical and the practical parts of the program. Professor Gide's "Consumers' Co-operative Societies" (American edition), was used for a text book in Theory and History of Co-opera tion. Six of the students came from Minne apolis and six more from other parts of Minnesota; two from Wisconsin and one from Michigan. The oldest student was 77 years of age, the youngest 17. Eight of the students were native born and four others have been naturalized. Four of the fifteen were union members (milk drivers) ; five supported the Farmer-Labor Party, two the Workers' Party and two were members of the Young Workers' League. Five had spent some time in the public High Schools and two were High School graduates. Four had previously attended the Finnish Co-operative Training School, and one had attended the School at Minne apolis the year previous. In the two intelli gence tests given the students by the in structors, the results ranged all the way from 20 percent to 73 percent. Final marks were given the students on the basis of work done in each subject. The best student averaged 89.5 percent and the poorest 67.3 percent. Eight of the students averaged above 80 percent. All the students were this year granted scholarships. The Franklin Creamery offered ten scholarships of $100 each, but only six were applied for. Other scholar ships awarded by the Co-operative Central Exchange or by local societies ranged in value from $20 to $50. Many of the stu dents were lodged at the homes of Franklin employees, and all took their noon meals at the restaurant in the North plant of the Creamery. Four excursions were planned by and for the students to institutions of interest in the neighborhood. A night lecture course was given during part of the time for the bene fit of students, insrtuctors and public, but failed to draw a large attendance. At the close of the School a banquet was arranged for students, instructors, resident alumni and representatives of the Creamery Asso ciation, and the Co-operative Students Fellowship, formed in 1923, was reorgan ized under the name "Co-operative Student Pioneers." Despite the small attendance at the School in 1924 and the failure of the Night Lecture Course to attract outsiders, the Second Co-operative Training School marks a real step forward in the progress of Co operative Education in the United States. These two failures in matters of attendance can both be laid directly at the door of the so-called Speakers' Service Bureau, organ ized by two individuals in the city of Min neapolis. This Bureau took entire respon sibility for getting students from the labor movement locally and for arousing interest generally throughout the Twin Cities. The Bureau failed so completely that it did not get one student, and the Secretary left town before the School opened. The Training School Movement in the English language is still young in this country. But those who despair of its value may profitably read the article in the next issue of CO-OPERATION, which shows the results coming from the older school con ducted in Finnish. 1924 at the Central Exchange "\\7E didn't gain our aim of 'Three- * * quarter Million Dollar Sales in 1924,' but that's no reason why we should cry, for we made a big gain over 1923," says Eskel Ronn, Manager of the Whole sale at Superior. "When we set our aim, possibly we were a trifle too optimistic and were over en thused with the splendid results of 1923, but be that as it may, the fact remains that our movement as a whole has shown won derful progress. The reports of our audit ing department show that each local co operative store has gone forward by leaps and bounds. It is our opinion that 1924 was the best year in the history of the co operative movement in this territory, when taken as a whole. Our movement in the north central states is the strongest in the country, and its members are more loyal to the movement. They are now beginning to grasp what the movement really means. "The total sales of the Co-operative Central Exchange in 1924 amounted to $612,841.25, which is an increase of $108,- 676.59 over the sales for the previous year. Measured by its annual turnover, each year shows steady growth and progress in the life of the co-operative wholesale of the Fin- insh co-operatives in the north central states. Gradual increases amounting to a hundred thousand dollars or more each year, rather than any spectacular attain ments, have been the rule for several years past. "With the additions to our lines of mer chandise, our enthusiasm, and our confi dence in the organization," says Manager Ronn, "there is no reason why at the close of 1925 we cannot say that again we have taken a gigantic step forward." Improvements costing in the neighbor hood of $7,000 were made last fall in the building owned by the Exchange in the wholesale district of Superior. These in cluded the installation of a modern elevator from the basement to the third floor of the building. Besides the business offices of the Exchange, a bakery plant, shipping depart ment, storage rooms and a large meeting hall are located in the building. A few apartments are still rented out to tenants on the second floor of the building, but it will now be only a short time before they will have to be vacated and the partitions removed to make room for storage and other purposes. Stocks of goods from both sides of the globe may be seen in the Exchange ware house. Apples from the state of Washing ton and salmon from the canneries of Ore gon are received in carload lots. Two rail road carloads of lingonberries and marma lade were recently imported from Finland and received in the Exchange warehouse 34 CO-OPERATION CO-OPERATION 35 during the holidays. The bulk of the goods handled by the Exchange are now ordered in no less than carload shipments. The orders given for next spring's delivery in clude fifteen carloads of nails and wire fencing. Many of the standard commodities sold by the Exchange are now packed under its own "Co-operators' Best" labels. This label, among other goods, was last year added to rolled oats and canned fruits and vegetables of all kinds. Flour, coffee, bakery goods, etc., have long since been sold by the Exchange under its own co-operative trade-mark. The Exchange believes in doing co-operative work and in "selling co-opera tion" in connection with the commodities it handles. A comprehensive price list, giv ing the names, prices and qualities of all the goods sold by the Exchange, is now pre pared and mailed regularly to the hundred or so co-operatives doing business with the central wholesale. Two salesmen are regu larly employed and visit most of the co operatives in the central district at regular periods. Failures among the local co-operatives associated with the Exchange are becoming an unknown quantity; none were recorded last year and many of those local stores, which were in difficulties during the defla tion period a couple of years ago, are now on a sounder basis than ever before. Many of the most successful local co operatives are managed by former students of the training school held annually by the Exchange at its headquarters in Superior. Cases are on record where some of the most promising students, although they never had managed stores before, have been sent to take over the management of stores in stringent circumstances, and the results have been wonderful. One such instance is the farmers' co-operative located at Bruce's Crossing, Mien., which a couple of years ago was compelled to make a volun tary settlement on a percentage basis with its creditors in order to avoid going through bankruptcy proceedings. Another recent instance is the little Finnish co-operative store located in the city of Superior. This store also was practically on the rocks a couple of years ago, principally on account of the fact that it had lost several thousand dollars of its funds in the failure of a cream ery enterprise, organized by certain over- ambitious persons possessing more promo tional ability than good common sense. This little store made a net profit of $2,000 in 1924 and its stock of goods turned over a total of 42 times during the year, which is apparently a record. Consumers' co-operative stores are now permanent institutions in many localities in the north central states. They have come to stay as the forerunners of a new system of distribution of everyday commodities. In many farming communities the day is fast approaching when private stores will be relegated to the past, whence they will re turn no more than the stage-coach nor the pony-express of olden days. A School Co-operative FOR several years a co-operative society of school students has carried on success fully in Sofia, Bulgaria. Its object is to supply the members with school materials. It not only provides pencils, books, paper, and other like materials, but supplies ath letic goods, runs a canteen where students can get meals. This organization also de velops a library and reading rooms, play grounds and a vacation home in the country for students. The parents of most of the students are members of co-operative so cieties. The idea of the organization is to give the youth co-operative training of a practical character. City Co-operative Dairy, Cleveland THE City Co-operative Dairy, younger brother of the Franklin Co-operative Creamery Association of Minneapolis, held its annual members' meeting on January 15th. Mr. Solem, who has been manager of the institution for the entire year 1924, rendered a report. At the beginning of the last year the financial condition of the Dairy was very bad; the machinery and equipment was quite inadequate, the delivery wagons and trucks were far from what they should be in appearance, the product of the dairy was below standard, the relations between the dairy and the organized dairy workers were strained, and the relations between the dairy and the organized milk producers in the rural sections were in a bad way. The entire business was pretty much disorgan ized. In addition, the books and other records gave no accurate information re garding the business. The righting of these conditions and the elimination of large leaks has been the prin cipal work of Mr. Solem during these twelve months. The delivery equipment is now the best in the city; the inside ma chinery is much better; the Union has changed some of its officers and the rela tions between it and the Dairy are of the best; the Dairy is now, for the first time, getting all its milk from the farmers' mar keting association (and is the only dairy in the city which can make this boast) ; the sales force is making genuine progress in getting new business, and the financial re port shows 1924 as the first year in which substantial losses have not been incurred. The new Board of Directors elected for 19,25 are: Name Organization Ormbruster, H. G.. .Transfer & Teaming Rohrich, John..... Building Mat. Drivers Shanks, Roy. ............R. R. Firemen Severino, A. V............... Bricklayers Young, Fred K... Trade Union Prom. Lg. Doyle, Earl.................. Engineers Ray, William............ Street Carmen Harrison .................... Attorney Mrs. Gulbraith.............. Housewife Co-operative Buys a City 'IPHE membership of the Royal Arsenal Co-operative Society, Woolwich, Eng land, has empowered its General Commit tee to purchase from the British Govern ment the garden city at Well Hall. This little city contains 1,034 houses and 212 flats and 90 acres of freehold land. These houses were built during the war as a part of the Government's war housing program, and the entire venture cost 808,- 000 pounds at that time (about $4,000,- 000). The price named by the Govern ment to the Co-operative Society was 375,000 pounds (about $1,750,000). The Royal Arsenal Society will preserve the parks and lawns as they now exist, will attempt to keep out all shops. Plans will be worked out so that tenants can purchase the property over a term of years. This latter feature is to be regretted by all advo cates of social or co-operative ownership of real estate in preference to individual own ership. This large co-operative society has diffi culty in finding use for its huge reserve funds, and the housing project is one of its methods of solving the problem. Great Figures From Milford THE work at Milford, New Hampshire, continues to get better every year. The re port for the half year ending October 1, 1924, gives, among other things, the follow ing illuminating pieces of information: Sales, six months $43,370; gross profit 17.8 percent; total expenses 10 percent; wages (including del.) 8.5 percent; turn over stock 30.2 times a year; semi-annual dividend to members at rate of 10 percent; semi-annual dividend to non-members 5 per cent. Probably there are no co-operative stores in the eastern part of the country that can show a financial statement as good as this one. There is plenty of chain-store com petition in Milford, but it does not inter fere at all with the continued growth of the co-operative store which now does a larger business than any other grocery store in town. The membership is composed of English, Scotch, American, Finnish, Ital ian, most of them workers ir the granite quarries. No member can hold more than one share of stock ($25), yet for these six months several members drew savings-re turns of more than $60. Jewish Workers Bakery of Springfield THE Jewish Workers' Co-operative Bakery of Springfield, Massachusetts, is the largest of the group of Jewish bakeries in that state. Organized in 1920, it has grown until it now shares the great bulk of the business in the city with one large competi tor, a private concern. For 1924 the gross sales were $103,- 066.72, the cost of materials, productive labor and plant were $93,621.24, and the selling and administrative expenses were $3,266.09. This left a net gain from opera tions of $3,015.30. This brings the Re serve Fund to date up to $4,278.46. The Springfield Bakery, like most of the Jewish bakeries, does the bulk of its busi ness with private retailers and so has little direct contact with the consumers. The Manager and Directors are now trying to work out a plan for establishing two or three small stores throughout the Jewish sections of the city so that they can handle all the retail trade direct and thus eliminate the necessity for selling either to the private stores or to the private delivery men. Other co-operatives troubled with this problem will watch the experiment with interest. 36 CO-OPERATION CO-OPERATION 37 District Leagues Conference of Directors and Managers of Illinois THE following is the Program of the Fourth Semi-annual Co-operative Conference of Managers and Directors of the Central States Co-operative Wholesale Society and its Educational Department. EDUCATIONAL SECTION Sunday, February 8th—Morning Session——10 A. M. Organization of Conference. Election of Officers. Review of First Year's Work and a Look into the Future of the Educational Depart ment—.Educational Director A. W. Warinner. How Can the Educational Department Better Serve its Affiliated Societies?—C. C. Rakow, Fred Backman, Glen Foster, J. Liukku. How Can the United Consumer Be More Valuable as an Educational Medium?— C. E. Gillins, C. B. Downen, E. B. Zopbro. Afteroon Session—1:30 P. M. Co-operative Advertising—L. J. Salch, John Augustine, Jr., Mathew Vitton. Proposal for Organizing a Co-operative Publishing Society—A. W. Warinner. Why is the Membership of Illinois Societies Not Increasing More Rapidly and How Can This Condition Be Overcome?—B. G. Strow, J. W. Shelton and Wm. Koennigkraemer. Why Should We Have a Women's Guild in Every Society and How Can It be Organized?—Hazel B. Warinner, Mrs. Mathew Vitton, Mrs. Grace Hunter, Mrs. Anna Critchley and Mrs". Louis Codemo. How Can the Illinois Societies Fittingly Celebrate International Co-operators' Day ?— A. B. Nicholson, T. P. Testa, and P. C. Murphy. Co-operative Banking and Co-operative Credits—Colston E. Warne, School of Com merce and Administration, University of Chicago. Dinner Session—Rose Sweet Shop—6 P. M. E. B. ZOMBRO, Toastmaster What Protection at Cost Means to the Workers—President J. H. Walker. Theatre Party at Gayety Theatre at 8 P. M. COMMERCIAL SECTION Monday February 9th—Morning Session—9 A. M. A Definite Plan for Joint Buying on a Practical Basis—A. W. Warinner, Manager, Central States Co-operative Wholesale Society. How Can the Wholesale Help the Retail Stores—Wm. Koennigkreamer, J. W. Shel ton and Roy Schuler. How Can the Retail Stores Help the Wholesale—A. B. Nicholson, C. C. Rakow and T. P. Testa. How Can the Managers Be Cured of the Habit of Not Answering Letters—Fred Mollman, C. E. Gillens and B. G. Strow. How Can Managers Be Induced to Give Business to the Wholesale by Mail—Mathew Vitton, Wm. Lorfinz and Fred Bachmann. Afternoon Session—1 P. M. Co-operative Accounting and Income Tax Problems—L. R. Martin, C. E. Warne and Eldred Picton. Forecasting Market Conditions and Gauging Your Buying Accordingly—P. C. Murphy. A Forecast of Business Conditions for 1925—Colston E. Warne, School of Commerce and Administration, University of Chicago. Increased Dividends for Co-operative Societies Through the Consumers' Mutual Aid Guild—Thos. Cameron, President, Consumers' Mutual Aid Guild. A Co-operative Year Book THE Northern States Co-operative League has authorized its secretary, Mr. Alanne, to begin work on a Year Book which will show the status of the movement in the North Central States. The book will contain historical articles, statements of the present position of the societies, treat ments of the problems they are facing and other pertinent subjects. The Year Book will be 6 x 9 inches in size and will contain at least 96 pages, 64 of which will be reserved for text, 8 for pictures, and the others for advertising. The edition (15,000 copies as a minimum) will involve an expenditure of about $1,800. The expenses in getting out this book will be met for the most part from adver tising. Co-operative societies will get space rates at about half the cost to private busi ness interests. No advertisement will be accepted from business firms in competition with co-operatives working in the same ter ritory. Societies who wish extra text space in the book may purchase such space at $20 per page. All material for this book must be in the hands of the Secretary, 2108 Washing ton Ave., N., Minneapolis, Minn., before April 1st. Every society in the territory is urged to appoint a Year Book Committee which will gather statistical and other ma terial, cuts for pictures, financial statements, etc., and forward to the league secretary. Activities of Educational Department of Central States Wholesale THE report of the Educational Depart ment of the Central States Co-opera tive Wholesale Society for its work during the past 14 months shows the following activities: Twenty-three co-operative associations affiliated. 22,000 pieces of co-operative literature distributed. Publication of The United Consumer, with 5,000 circulation. 1,287 letters asking for advice and infor mation answered. Accounting Bureau is keeping books for ten organizations. Speak ers have been furnished for 72 meetings. Two delegates were sent to the Fourth Co operative Congress, N. Y. Three managers and Directors' Conferences organized, which have been attended by 123 delegates representing 38 co-operative societies. Four Co-operative Women's Guilds formed. "We have no place in the American democracy for the Money King, not even for the merchant prince. Industrial democ racy must supplement political democracy; industrial liberty, political liberty. . . . Our democracy cannot endure half free and half slave. "The essence of the trust is a combina tion of the capitalist, by the capitalist, for the capitalist. "The essence of the co-operative society is association of the people, by the people, for the people." Louis D. BRANDEIS, Justice U. S. Supreme Court. So long as the question of price, profits and dividends are the sole or dominant idea of business corporations, just so long will we have price-fixing (by the govern ment). While price-fixing flourishes we will never have that which is so necessary to the co-operative movement—a standard ized market. HUSTON THOMPSON, Chairman, Federal Trade Commission. 38 CO-OPERATION CO-OPERATION 39 Directors' Page THE Co-operative Auditing Bureau of The League is under way. Mr. Stuart Chase and Mr. Walter Cook, both of the Labor Bureau, Inc., who are doing the work, are auditing the books of the follow ing societies during January and February: Consumers' Co-operative Credit Union, New York City. Utica Co-operative Society, Utica, N. Y. Hebrew Co-operative Bakery, Brockton, Mass. Labor League Co-operative Bakery, New Bedford, Mass. United Co-operative Society, Norwood, Mass. United Co-operative Society, Maynard, Mass. Consumers' Co-operative Housing Asso ciation, New York City. Finnish Co-operative Trading Associa tion, Brooklyn, N. Y. It is only a small proportion of all the societies in these northeastern states, but it is a good start. More societies will come in during the course of the year. L. E. W., Educational Director for one of the societies, suggests that the story of the Auditing Bureau can be stated more briefly and clearly than we had it last month. Here is his suggestion: What League Auditor Will Do a. Go over the books in the interest of the members, checking every figure, b. Certify, as an outside expert that: 1. The books have been well kept; and that 2. They show all transactions involving money. (Every manager and treasurer who takes responsibility for money has a right to this ap proval of his work.) c. Present to the Board and to the members so simple a statement of what the books show that you do not need to be an accountant to understand them. (Also to speak to members' meetings, explaining and answering questions. These reports and charts can be cheaply duplicated to distribute to members.) d. Tell the Board or Members whether other co-operatives have any better way of doing, or keeping track of, the same kind of business, e. Analyze the cost of each department; and tell 1. Whether you are paying too much for the things you buy; 2. Whether wages cost too much or too little for your amount of business; 3. Whether your inventory is too big, too small, or just right; 4. Whether delivery (when there is one) costs more than it should. (If a store is not making money, this is the only way to find out why.) f. Make out your tax returns; perhaps sav ing money because of the experience of other co-operatives. NOTE: Just as we need a doctor when we are sick, or a lawyer when we go to court, we must have an expert when it comes to judging a business. The important thing that the League's expert accountant (Mr. Stuart Chase, C. P. A.), can do for every society is the analyzing of costs. Private business pays huge sums to have this done for them. By banding together we can get the same thing more cheaply. Possibly some of the Directors who are readers of CO-OPERATION think we are giv ing too much attention to this Auditing Bureau. We warn all such Directors of co-opera tive societies that we have only just started to give publicity to it! We are going to talk and write about it until every society that calls itself genuinely co-operative is having its books audited co-operatively. PUBLICATIONS — OF — THE CO-OPERATIVE LEAGUE HISTORICAL Per Copy Per 100 3. Story of Co-operation .............t -10 £6.00 7. British Co-operative Movement ...... .10 6.00 38 Co-operative Consumers' Movement in the United States ............... .05 4.00 39 Consumers' Co-operative Societies in N. Y. State, (Published by Con sumers' League) ................ .10 10. A Baker and What He Baked (Belgian movement) ..................... .10 TECHNICAL 4. How to Start and Run a Rochdale Co operative Society ................ .10 5. System of Store Records and Accounts .50 6. A Model Constitution and By-Laws for a Co-operative Society ........... .05 8. Co-operative Education. Duties of Educational Committee Defined.... .10 How to Start a Co-operative Wholesale .10 Why Co-operative Stores Fail ....... .02 Co-operative Store Management ..... .10 How to Start and Run a Women's Guild ......................... .05 How to Organize a District Co-opera tive League .................... .10 Credit Union Primer (By Ham and Robinson) ..................... .50 Application Blanks for Membership in a Co-op Society ................. .65 Co-operative Housing .............. .10 A B C of Co-operative Housing. ..... .10 Model Lease for Co-operative Apart ment House .................... 9. 27. 2. 14. 15. 29. 32. 43. 50. 51. .10 MISCELLANEOUS 16. 46. 11. 12. 33. 13. 34. 30. 41. 42. 52. 53. 54. 55. 56. 57. 58. 59. Model Co-op State Law ........... .10 Producers' Co-operative Industries ... .10 Control of Industry by the People through the Co-operative Movement .10 Credit Union and Co-operative Store. . .05 Credit Union and Co-operative Bank.. .05 The Place of Co-operation Among Other Movements ..................... .15 Co-operative Movement (Yiddish) .... .02 "When the Whistle Blew" (Story, by Bruce Calvert) ................. .06 Farmer's Co-operation (By Benson Y. Landis) ........................ .15 Co-op Homes for Europe's Homeless.. .10 Homes to Live In.................. .05 Real First Aid for the Farmers. ...... .05 Credit at Cost for the People. ...... .05 A Better World to Live In.......... .05 Government That Begins at Home.... .05 How a Consumers* Co-operative Differs from Ordinary Business ........... .02 Making Co-operation Succeed in America ........................ .02 Co-operative Movement in Europe.... .05 ONE-PAGE LEAFLETS 4.00 2.50 1.00 1.75 1.25 (One Cent each; 50 Cents per 100; $2.50 per 500; M.OO per 1,000). (1) Principles and Aims of The Co-operative League; (18) Do You Know Why You Should Be a Co-operator; (20) Why Loyalty Is Necessary; (21) Cost and Crime of Credit; (22) A Real Co-operator; (25) Resolutions Adopted by A. F. of L.; (26) Factory Workers Co-operate!; (28) Do You Know About Co-operation in Europe?; (40) Have You a Committee on Education and Recreation?; (44) "hat Is the Co-operative Movement?; (45) Schools and Stores; (47) A Man's Right to a Job; (48) Tips to Co- operators; (49) The Way Out; (58) Making Co-operation Succeed in America. MONTHLY PUBLICATIONS CO-OPERATION—(In bundle lots, $7.50 per hundred). Subscription, per year..................... .$ 1.00 HOME CO-OPERATOR, 4 pages.......... .$1.00 per 100 INTERNATIONAL CO-OPERATIVE BULLETIN. (Pub. by The I. C. A.)...........Per Year, $1.50 BOOKS The ^following books are recommended as containing tlie best discussions of the modern Co-operative Movement. They may be ordered through The League: Bergengren, Roy F.: Co-operative Banking, A Credit Union Book .............................. $3.00 Blanc, Elsie T.: Co-operative Movement in Russia.. 2.50 Brightwill, L. R.: Animal "Co-op" Book—For Children ................................. Faber, Harald: Co-operation in Danish Agriculture. 1918 .................................... Wholesale Co-operation in Scot- .15 2.75 Flanagan, J. A.: . . . land, 1920 ............................... 2.00 Gebhard, Hannes: Co-operation in Finland, 1916.. 2.00 Gide, C.: Consumers' Co-operative Societies, 1921.. 2.50 Gide, C.: Consumers' Co-operative Societies, Ameri can edition and notes, 1922. Cloth, $3.00; paper bound .............................. .90 Hall, Prof. Fred: Handbook for Members of Co operative Committees ...................... 2.00 Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, $2.00; paper bound... .60 Holyoake: Rochdale Pioneers ................... 1.00 Howe, Fred C.: Denmark, a Co-operative Common wealth, 1921 ............................. 2.00 Jessness, O. B.: Co-operative Marketing of Farm Products ................................. 2.50 Madams, J. P.: The Story Retold................ .50 Nicholson, Isa: Our Story ..................... .25 Potter. B.: Co-operative Movement in Great Britaia 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 Reconstruction in Ireland, 1918 ............................. 1.50 Smith-Gordon and O'Brien: Co-operation in DCD- mark .................................... 1.00 Smith-Gordon and O'Brien: Co-operation ID Many Lands, 1920 .............................. 1.50 Sonnichsen, Albert: Consumers' Co-operation, 1919. Cloth bound, $1.75; paper bound............ .75 Steen, H.: Co-operative Marketing .............. 2.00 Stolinsky, A.: The Co-operative Movement. (!D Yiddish) ................................. 1.00 Warbasse, James P.: Co-operative Democracy...... 3.50 Webb, B. and S.: The Consumers' Co-operatire Movement, 1921 .......................... 5.00 Webb, Catherine: Industrial Co-operation, 1917.... 1.50 Woolf, Leonard: Co-operation and the Future of Industry ................................. 1.00 Woolf, L.: Socialism and Co-operation............ 1.50 "The Co-operative Consumer" and "Co-operation," III (1917), VI (1920), VII (1921), VIII (1922), IX (1923), X (1924).............. 1.25 Transactions of Second American Co-operative Con gress, 1920 .............................. t.OO Transactions of Third American Co-operative Con gress, 1922 ............................... t.OO The People's Year Book, 1924. Cloth, $1.00; paper Bound ................................... .60 (Ten cents postage should bt added for books which cost more than #2.00, and five cents for the smaller beoks.) THE CO-OPERATIVE LEAGUE (Member of The International Co-operative Alliance) 167 West 12th Street, New York An educational organization for teaching the history, principles, methods and aims of the Co-operative Movement and for the promotion of Co-operation in the United States. Join The League and thus help promote the educational work of the Co-operative Movement. Subscribe for the Monthly Magazine and keep in touch with the Movement. Enclosed find $. Name ............. . for D Subscription for CO-OPERATION - $1.00 D Membership in The LEAGUE - - $1.00 Address Co-operative Central Exchange Wholesale Grocers and Jobbers, Bakers We supply goods to Co-operative So cieties ONLY. We are owned and con trolled by Co-operative Societies. We are organized to enable Co-opera tive Societies to do collectively what they cannot do individually. Co-operative Central Exchange Offices, Warehouses and Plant: Winter Street and Ogden Avenue SUPERIOR, WIS. Co-operators' Ltd. Mutual Firt Insurance Co- is now writing insurance in State of Wisconsin. THE PRODUCER Issued Monthly Price 3d. If you want to keep in touch with business, organization, administrative affairs, and problems of the British Co-operative Movement, read THE PRODUCER. Published by Co-oPEEATrvE WHOLESALE SOCIETY, INC. 1 Balloon Street, Manchester Post free 4 sh. 6d. a year. The Trade and Technical Organ of British Co-operation. THE NEW SECRETARY'S LEDGER Just published by the Educational Department Central States Co-operative Wholesale Society (203 Converse Ave., E. St. Louis, 111.) is the form for keeping the Membership Ledger of a Co-operative Society which provides ample and proper space for all transactions with a maximum of effi ciency and a minimum of time, worry and errors. Send for Samples and Prices Co-operation in Scotland In no part of the world is Co-operation further developed, or more successfully practiced than in Scotland. If you wish to keep informed, read "The Scottish Co-operator" (.Published Weekly) Subscription: Year 12 sh.; Half-year, 6 sh. Address: 119 Paisley Road Glasgow Scotland The Madras Monthly Bulletin of Co-operation ROYAPETTAH, MADRAS, INDIA The only monthly on Co-operation in India. Special articles on Rural, Con sumers', Agricultural, Credit and Indus trial Co-operation; and Co-operation Abroad. Subscription Rs. 4/12 per annum. The Canadian Co-operator Brantford, Ontario, Canada The organ of the Canadian Co-operative Movement, owned by and conducted under the auspices of The Co-operative Union of Canada. Published Monthly 75c PER ANNUM THE HOME CO-OPERATOR A four-page magazine for use in co-operative societies. Issued monthly, in bundles, $1 per 100 Published by The Co-operative League Address: ALBERT SONNICHSEN, Managing Editor Willimantic, Conn. (MFCRATION A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in voluntary association, produce and distribute for their own use the things they need. Published Monthly by THE CO-OPERATIVE LEAGUE 167 West 12th Street, New York City J. P. WARBASSE, Editor Entered as Second Class matter, December 19, 1917, at the Post Office at New York, N. }'., under the Act o/ March 3, 1879. Price $1.00 a year. VOL. XI, No. 3 MARCH, 1925 10 CENTS OUT of this building on the North Side of Minneapolis (and another on the South Side), there yearly flows more than $3,300,000 worth of dairy products to half of the population of the city. But the Franklin Creamery has many other achievements to its credit: Higher wages to its employees; lower prices for milk; higher prices to the farmers; establish ment of the milk drivers union; a lowered infant mortality rate; operation on less than 4f( margin of profit; total sales of almost $9,000,000 in four brief years. And now the Franklin is pioneering in another field of service to the city—a medi cal clinic. Instead of giving patronage rebates to customers, they are to open a Nutrition Clinic—a change from the Rochdale to the world-famous Belgian way of serving the people. The story of the plans for this Clinic, with its doctor and nurse and its medical examination and attention to tens of thousands of the children of Minneapolis appears on the next page. 42 CO-OPERATION III Health Service Supplants Cash Rebate The Rochdale versus the Belgian plan of Co-operation. That has been the moot question at the Franklin Co-operative Creamery for the past two years. Many of the friends of this youthful co-operative have contended that a true co-operative'must pay patronage rebates. Many more have insisted that the rebate is the least significant feature of a genuine co-operative society. The matter has finally been decided and the auguration of a Health Service according to the Belgian plan is the answer. Franklin Nutrition Clinic Malnourishment among school children is generally recognized among the health authorities of the country as the most insidious enemy that confronts the rising genera tion. Actual disease can be recognized and treated. Organic defects are in the same class. But the undernourished boy or girl is generally characterized by parent and teacher alike merely as "listless," "lazy," "mentally dull," and by schoolmates as "slow," "a poor sport," "no good at games"; and nothing is done to help the sufferer. If that were all it would not be so bad. But it is not. Sooner or later the weakened constitution succumbs to some serious sickness. And so Franklin is appropriating a sum of money for the establishment of a Nutri tion Clinic to serve thousands of the boys and girls of the city. Qualifications for admission to the Clinic Service are: 1. Children of employees, shareholders and consumers. t 2. Applicant must be of school age (5 to 14 years). 3. Height-weight index must be 10 per cent below normal. 4. Applicant must not be under the care of a private physician. According to tentative plans worked out, there will be a clinic established at both the North and the South Branches of the Creamery, each clinic to be open a part of one day each week for the first few months. A board of three, composed of the physi cian in charge, the social nurse, and a member of the Board of Directors of the Asso ciation, will pass upon the qualifications of each applicant for admission. The clinic will take and keep careful records of the nutritional health and the general condition and progress of the patient until he is pronounced normal. A thorough examination will be made of each patient for all defects and diseases caused by other factors than that of diet. The doctor will devote two mornings a week to the clinic and will prepare such pamphlets and health editorials as will be necessary' for the promotion of health educa tion among the employees, shareholders and consumers of the Franklin Creamery. The Nurse will assist the doctor and will make home visits for follow-up work. The special Educational Department will consist of: 1. Lectures on health by various specialists to cover a complete course. 2. Health education of parent and child at the clinic and through the Social Nurse's service in the home. 3. Health education of employees, shareholders and consumers in general through bulletins and health editorials. This is the first large-scale attempt ever made by a co-operative in the United States to establish as a permanent institution such a social service out of its surplus. For years the great People's Houses of Belgian cities, built upon the economic foundation of the successful co-operative bakeries, and nourishing the social, artistic and cultural life of the workers, have stood forth as an inspiration to the world. Other countries have followed the example of the co-operators of Belgium. Now the United States falls into line. The Past Year at Franklin The Co-operative Creamery is four years old and well out of its babyhood. Dur ing those four years it has built up the strength and wisdom that justifies this new venture. Here are the sales from the beginning: CO-OPERATION 43 1921................................. $ 855,063.39 1922................................. 1,670,693.03 1923................................. 3,106,991.27 1924................................. 3,301,591.70 At the end of the first year milk was retailing in Minneapolis at 13 cents a quart. Now it is 11 cents. Then the Franklin had hardly two dozen wagons; now it has 175 regular routes throughout the city. In 1923 the net savings (or "profits") were $179,000. This past year almost $50,000 have been put into the Reserve Fund for the strengthening of the institution, and yet 7% interest has been returned on one million dollars worth of stock. The best progress in 1924 was made in the ice cream department where, in spite of the unusually cold summer, sales increased from $118,685 in 1923 to $160,576. Perhaps even more noteworthy than that was the increase by 44 in the number of employees, bringing the total number on the payroll up to 418. There are .now 6,000 stockholders, each of whom has at least $100 invested in this huge co-operative business. The customers number more than 30,000. The President of the private dairy corporation which is competing with Franklin told Mr. Nordby, President of the Co-operative, a few months ago that Franklin had taken away half of his business. Doubtless his estimate was conservative, for the co-operative is now by far the largest distributor in the city. But these statistics for business and patronage do not begin to tell the story. The Creamery has raised the wage and working standards for all dairy workers in the city. It has increased the efficiency of the industry. It has so improved the quality of milk distributed that Minneapolis has the highest grade of milk to be found in any large city, and the infant mortality rate has definitely been lowered. Meanwhile the city co-operative has established direct connections with the organized dairy farmers (Twin City Milk Producers Association) and while cutting out all middlemen, has also given the producers the highest price for their milk to be found anywhere in that part of the country. The Balance Sheet at the end of 1924 shows: ASSETS Property ............................................. .$1,392,755.44 Current Assets (Cash, Accounts Receivable, Inv., etc.) ........ 235,917.25 Miscellaneous (Cash Reserves, Stock, Band Instruments, etc.). 18,847.83 Deferred Charges ...................................... 30,956.52 Total Assets ................................... .$1,678,477.04 Balance of Organization Expense.......................... 85,173.04 Total ....................................$1,763,650.08 LIABILITIES Bonds Outstanding ......................................$ 350,000.00 Capital Stock and Surplus................................ 1,123,161.47 Current Liabilities ..................................... 109,541.86 RESERVES : Allowance for Depreciation .......................... 168,446.75 Allowance for Doubtful Accounts..................... 2,500.00 Surplus Reserve to Retire Bonds...................... 10,000.00 Total ................................... .$1,763,650.08 Current Assets exceed Current Liabilities by $125,575.39. The Annual Report of the Directors of the Association gives many interesting facts about the business. For instance, it has been found highly profitable to organize several departments for production or repair of equipment. By making their own delivery wagons in their own wagon shops they cut the cost of such wagons from $510 to $420.40. By shoeing their own horses, they cut the cost per shoe from $1.25 to 98 cents. The harness shop is another economical unit of the business. In the garage all 44 CO-OPERATION the repair work is done on the 40 trucks of the Association. Average cost per day for repairs, gas, oil and labor is only $85.87, or slightly over $2.00 per truck. Additional item of depreciation and fixed charges increase this to about $2.45. The average cost per day for the care and feed of a horse is 91 cents. Add 8 cents to this to cover de preciation and fixed charges and the total is still less than a dollar. Two years ago the Franklin Creamery made a large loan of money to the City Co-operative Dairy of Cleveland. At the beginning of 1924 it made even a larger loan in sending its manager, Mr. Solem, to Cleveland to take charge of the business there. Mr. Solem brought this concern, almost bankrupt under incompetent manage ment, up to efficient standards, but has not yet been able to leave it to other manage ment. And now, at the beginning of 1925, the Franklin is taking on as its Educational Director, Mr. Sever! Alanne, for three years Executive Secretary of the Northern States Co-operative League. For 1925 the Directors set their goal at $4,000,000 of business. Vital Issues The Nebraska Farmers Stand Fast THE embattled farmers of Nebraska have had their Twelfth State Conven tion and showed where they stand on Co operation. Things have been going badly with the agriculturists everywhere since the govern ment shook them down four years ago. The Farmers' Union of Nebraska had 37,000 members before they were deflated. Now they have less than 18,000. They lost 2,700 members in 1924. But the ma jority of them seem to know that they have to stand together to save themselves. Most farmers think chiefly in terms of organizing to sell their produce. The former president of the Nebraska Union was of this class. But there are in this organization a large number of co-operators. They are farmers who understand the whole program. They see the farmer as a pro ducer who gets money for his work and then has to spend that money. These are the farmers who have built up the many co-operative stores throughout the state. They have created also their co-operative wholesale, the Nebraska State Exchange. At this 1925 convention, they had a warm discussion between the followers of their president, who were satisfied to organize as producers, and, on the other side, the co-operators who wanted to organize both as producers and as consumers. This latter class, the co-operators, were for protecting and supporting the stores and also the wholesale. Then they had an election, and they elected a new president from the co-oper ators' class by a vote of 25G to 170. This means that the Nebraska Farmers' Union votes to move forward. They showed their grit by passing reso lutions that again prove that they are for co-operation. While the farmers all over the country are asking for government aid, these Nebraska farmers want none of it. They say: Co-operation must spring from the people themselves by their own efforts. It must be a voluntary, self-help movement. Otherwise it is not co-operation but paternalism or bureau cracy. Therefore we oppose the Curtis-Aswell, the Capper-Williams bill, or any other measure providing for a co-operative marketing system under government direction and control. That is strong talk to come from farm ers who have lost millions of dollars and been sunk deep into debt during the last five years. They know that the cards have been stacked against them. All they ask is a square deal. With the government playing no favorites they think they can take care of themselves. Here is a resolution which shows that they understand the situation: We do not ask for any special privileges. We are willing to help ourselves. But we claim that agriculture must be placed on an equal foot ing with other industries of the country by proper legislation. Therefore, we demand a reasonable reduction of tariff rates in order to enable some of the foreign nations to ship some of their manufactured articles in payment of their debts to this country and enable the farm ers to buy them at reasonable prices. CO-OPERATION 45 It is a cheerful sight to see farmers look ing through the holes in our tariff wall. The Nebraska Union farmers are getting so close to the people who are causing their troubles that soon they may see the whites of their eyes. Then look out for the em battled farmers. They may yet be heard round the world. Customer Owners "/CUSTOMER owners are best for pub- **J lie utilities." Who made this significant statement? Who could go to the root of an economic question like this unless it were somebody who sees things as they really are? Well, here is the surprise. Henry L. Stimson and Arthur T. Hadley both said it in their re cent addresses before the New York Republican Club. Both of these gentlemen have been very close to big business and the upholders of things as they are. Mr. Stimson, a corporation lawyer, was formerly Secretary of War, and Mr. Hadley resigned the presidency of Yale University to go on the board of the New Haven Railroad after it had been convicted of looting the people of New England and debauching every New England legislature. They have had their hand in big business in its palmy days. They know the weakness of profit business for private gain; and perhaps they know that it does not work—or at; least will not keep going indefinitely. Mr. Stimson is reported as saying: "I note a growing movement for customer ownership in public utilities. During the past five years $700,000,000 of the stock of public utility corporations have gone into the hands of customers of the corporations. 1 see this is making ownership represent the savings of the people instead of the wealth of the few." Both of these men heartily approve of this and hope to see it expand. We wonder if they realize where this move ment leads. These men advocate larger ownership for two reasons. One is because ownership of stock by the workers and the little people means that the corporations have more friends, fewer hostile critics, and a larger clientele that wants them to prosper. As a result there is less "labor trouble," less danger of restrictive legislation, and more profits. The second reason is that this movement is in the opposite direction from government control and ownership. Yet government control and ownership are coming fast. The socialists are praying for it; even the capitalist governments are putting it into operation. Mr. Stimson niid Mr. Hadley see this trend of things. Wider distribution of the stocks of cor porations into more hands, out among the common people, may stabilize things and may save their system. What are some of the differences between government ownership and private owner ship? Government ownership tends to lower rates when it is good politics; private companies do so when it is good business. Mistakes of a private company can be con trolled ; but those of a government become sacred. But this idea of customer ownership of these gentlemen has its limitations. Finally it defeats its purpose if carried to a con clusion. When all the stock of the electric trolley railroad of some town is so widely dis tributed that every passenger in the town who uses the railroad is a stockholder, then the stockholders may have a meeting some day and revise their by-laws or articles of incorporation. They may provide that each stockholder shall have only one vote, that stock shall be paid a fixed rate of interest, and that service shall be given at cost. That would be good for the road, for the people, for the stockholders, for the passengers, and for the employees. Stranger things than this have happened in this world where foolishness seems so natural. People some times have lucid intervals and act sanely in their own interest. Who can tell? And when they have gotten that far with their street railroad and found that running it in the interest of the passengers is a good thing, they may apply the same principle to other things, and the idea may spread to other towns. This very same idea of customer owner ship in store-keeping started in Rochdale, and in fifty years it had spread to every town in England. Common sense may be just as spreading as nonsense, if it gets the right start. Of course, Mr. Stimson and Mr. Hadley would not want their good idea to "go too far"—only just far enough. But a good idea is hard to control. Nobody can tame it, put it in a cage, make it eat out of the hand, and come at the call of the master. Good ideas do not always behave that way. 46 CO-OPERATION Suppose this idea should spread to the beef trust, or the bread trust, or the sugar trust! The people in their co-operative societies are capturing these corporations and controlling them steadily in Europe. An hydro-electric plant in Pennsylvania that had charged exorbitant prices has re cently been bought out by the consumers and made co-operative. Suppose the con sumers should get the habit of doing this with hydro-electric supply corporations! Or let us take the most difficult thing that can be imagined: Suppose the stocks of the American railroads should get so widely distributed among the people that each passenger and shipper and consumer of transported products had a share of stock. It might not be so difficult as it seems. If these gentlemen really want the public to own the railroads this is the safest way the thing can be done. Let the railroad ticket, the bill of lading, and the store purchase check become receipts for payments. Grad ually cease paying dividends on old stock, and issue new stock to these patrons instead of dividends. Amortise bonded indebted ness over a long period. Institute state and district boards of directors. Establish a national directorate, amenable to the district groups. One member one vote, fixed in terest rate on stock, service at cost plus enough for surplus. Then we have real ownership by the customers—the consumers. Customer ownership leads to the solu tion of the problem. We wonder if those who favor it in a mild way really and hon estly do want the problem solved. Fancy Housing Schemes A WAG said that, "the world is full of willing people—some willing to work and the rest willing to let them." But the kind of willingness that we Co-operators are concerned about is that which prompts people to go into fancy schemes because somebody tells them it is "Co-operative." We think that the high-flying "Co-opera tive" swindles are about put out of business, but there still remain border line schemes which flirt with the name of "Co-opera tion" and get away with it. Up and down the avenues of our big cities we see the signs—"Co-operative Apartments." The promoters of one of these speculative schemes recently called at The Co-operative League House to get an endorsement. When they were shown that it was not Co-operative, that it granted out right ownership of the apartment with the right to sell or sublet unrestricted and at one's own price, and when they were urged to stop using that word in connection with the undertaking, they refused to stop, because, they said, "the people like the word 'Co-operative.' " So the unwary are still enticed with the advertisements of the "100% Co-operative." Up in Warren County, New Jersey, an old lady lived near the Sussex County line. She was greatly rejoiced when she heard that they were going to move the county line so that her house would be in Sussex County; as she said: "I'm awful glad be cause I've always understood that Sussex County was a good deal healthier than Warren County." There are a lot of old ladies biting at advertisements and going so far as actu ally to move into what they think is a healthier atmosphere, when it is not the atmosphere that is changed, but only the name. On the other hand if they really want to live in a co-operative house, they can do so. There are plenty of people who really do want to join them. Many people with this feeling go ahead and create true co-opera tive apartments. The thing that prevents the great mass of people from having co operative homes is their willingness to be indolent. They are willing to forego the work necessary to be their own landlords, and the real estate promoters are willing that they should. J. P. W. Is Co-operation Enough? Beginning with this issue we are run ning a series of articles by people who think it is not, and who do not hesitate to say so. Each of these people who writes for us dur ing the next eight or ten months is a lead ing spirit in some economic, political or social school of thought. We shall hear from a Philosophical Anarchist, a Com munist, a Syndicalist, a Socialist, a Single Taxer, a Progressive, a Capitalist, a Paci fist, a religious leader and others. All these articles will appear under the title Why Co-operation Is Not Enough. Harry Kelly speaking as a Philosophical Anarchist, be gins the series this month. We all know what co-operators think of the co-operative movement. Here is our opportunity to learn what others think of it—and of us. C. L. CO-OPERATION 47 Contributed Articles Why Co-operation is Not Enough From the Anarchists' Viewpoint By HARRY KELLY A WOMAN I know is, like so many of us, better than her philosophy. She devotes a great deal of time to the move ment which to her represents an ideal. Nevertheless, her mental attitude and methods are entirely wrong, as is any philosophy which makes its appeal purely on the basis of material gain. A short time ago this woman said to me, appropos of a certain co-operative activity, "Oh, I wish they wouldn't advertise in the . . . ; it is such an extremist paper it will surely hurt us with many people." A little later I was told of two girls who had learned the cafeteria business at a co-operative establishment and had then opened a place of their own, and, as my informant told me, "they were doing quite well." These incidents, simple enough in them selves, display a weakness in the move ment and indicate why co-operation by it self is not enough as a social program. Idealism Must Dominate Economic Interest That it is desirable for those who labor to have all they produce, less the cost of exchange, is an elementary truth which needs no argument. That others conceive it to be ideal also goes without saying. Nevertheless, when the appeal is based upon personal interests and when those interests are concerned with property, the movement itself must remain weak. The basic idea of any social movement—and if the co operative movement is not social it has small reason for existence—should be to establish justice for all. The emphasis should be placed on that fact rather than on the amount of money to be saved or achieved by co-operative methods. It has long been a hobby with me that if a man—genius and superman excepted— wants to improve his economic condition, the best and quickest way to do it is to be more obsequious or more unscrupulous than other men. To enter a revolutionary or co-operative movement merely for the purpose of improving one's condition seems to me to be going the wrong way round. My own social theory is that one known as Anarchist Communism: Free Commun ism as opposed to State Communism. It is a society based upon individual freedom with communistic methods of production and distribution. This movement, like all social movements, has an economic founda tion; but the vitalizing force lies in the ideal of a society of free individuals, each living his life to its highest possibility and recognizing an equal right for others. How Define Radical Idealism? To have arrived at such a state of mind many problems must have been met and solved, one of the most important being— granted that each man or woman has the opportunity to express himself, what form should that self-expression assume? Great teachers like Kropotkin and Tolstoy, and scientists like Einstein and Darwin, find their self-expression in working directly or indirectly for humanity and no one can read their works or read of their lives with out being the better for so doing. Men like Rockefeller, Morgan, Gary, etc., find their self-expression in dominating other individuals; the sense of power at being able with the stroke of a pen to influence the lives of thousands thrills them. Think of the thrill one must feel at having the power to increase the price of oil five cents a gallon and make one's influence felt in a million households! Does it need any argument to prove such self-expression is harmful? The neutral manner of self-ex pression may consist in watching a baseball game or in powdering one's nose. Such things provide pleasure for some individuals and do no harm to others. Life is complex and man has so many sides that no one activity can save either humanity or the individual. Co-operation although of the utmost importance will by itself no more solve the ills of mankind than trade unionism, single tax, socialism, what is erroneously called "Communism," or any other purely economic movement. Neither, for that matter, birth control or education. All these are contributing in some measure to achieve the end; none of them in itself can do it. The vitalizing force of a movement is the ideal underlying it. It resolves itself into a question of values, however, and men must be con vinced that life is rich in proportion to the ideal one holds rather than in the wealth one has or the power one wields. 48 CO-OPERATION The Strength of Co-operation The strongest factor in the co-operative movement is not the money it saves nor even the experience in the management of their own affairs it gives the participants. It is the fact that it is based upon voluntary association and neither asks nor expects assistance from the State. It stands or falls upon moral suasion and can never be in flicted upon an unwilling majority or minority. The advocacy of temperance or even of total abstinence was a splendid thing, but when it was codified into a law, making a criminal of the man who dis regards it, it became with its army of spies, murderers, bootleggers and crooks high and low, a thing accursed. Coercion has its roots in inequality, and so long as people submit to authority inequality will continue to exist. During the war co-operators killed each other as ruthlessly as vegetarians or one hundred percent patriots and no doubt justified themselves by saying that "some day when universal co-operation has beer established we will stop doing it." Prob ably some co-operators were conscientious objectors, but the movement as such being purely economic does not concern itself with such things. Neither does it concern itself with art, sex or any one of the multi tude of other things that go to make up life; that is why it is not enough. The Greater Strength of Anarchism Anarchism can and does concern itself with every phase of life, and anarchists claim that if men and women were free intellectually they would refuse to bow to capitalist, landlord, church, or even public opinion. They may worship one or many gods, try out collectivism, authoritarian or free communism, credit banks after the theory of Proudhon, single tax, syndical ism or other forms of production and dis tribution not yet discovered. Experimenta tion is a law of life and men should be free to work out their different theories of social grouping as well as the thousand and one other problems that life presents. Every anarchist, no matter how individualistic his philosophy may seem, is in the very nature of things a co-operator and if in certain cases he is unable to work in a purely economic movement it is because it seems less important than other things he is interested in. After all it is very difficult for types that are different to work together. A co-opera tive creamery in Finland or an apartment house in Brooklyn may not be important enough in the lives of some persons to make them work together with people who vote for Coolidge and support every standpat politician in the community. It is a sad fact, but a fact nevertheless, that in some of the States where economic co-operation is most advanced the most reactionary laws exist. The co-operative movement is like any other movement that draws its units from every group in society. It has to nar row its activity to the basis of the largest group which is invariably the most conser vative. The result of this activity is as often as not on a plane that stimulates the acquisitive instinct; therein is its weakest link and the reason, I believe, why what is known as the Co-operative Movement is not sufficient. Russia and the Conflict Between Co-operation and Stateism By J. P. WAEBASSE (Continued) THE organization of the co-operative societies in the large cities of Russia is not easy to understand. They have great business, extensive plants, and many mem bers. Undoubtedly many members have joined, paid for a certificate of stock, and are duly constituted members just as in other countries. On the other hand, one finds much confusion in this connection. Do the members know that they are mem bers ? is a question that often comes to one's mind. I have asked a working man: "Are you a member of the Moscow Co-operative Society?" "Yes." "How long have you been a member?" This was difficult to answer. "How many shares of stock do you own and how much did you pay?" "I do not know; I did not pay anything." "Have you got a stock certificate?" "No." "Does the society have meetings for the members?" "Yes." "When was the last meeting?" "I do not know." "Did you ever attend a meeting?" "No." "Did you ever have paid back to you a savings-re turn?" "No, I get that in the form of a discount every time I make a purchase." It is also a common practice, I am told, for members to lend their books to others to make purchases on. CO-OPERATION 49 One member' told me that he paid annual dues. There seems to be a looseness of con nection with the co-operative society. Some working people associated the co-operative with their trade union. One worker said that he was a member of the trade union and it ran the co-operative stores. Another said that membership in the trade union made him a member of the co-operative. It often seemed doubtful whether they really were members or whether member ship is automatically secured by their trade union connection. This condition may not be general; these may be isolated instances. I can say that the situation here is differ ent from what one finds in other coun tries, where every member of the co-opera tive society knows very definitely that he is a member; he knows when he joined; he has shares of stock; he knows what they cost and where the stock certificate is, and when the last membership meeting was held. Among the Russians with whom I talked this is not the case. One problem I honestly tried to solve. It is the question of the relation of the Co-operative Movement to the State. It was for this that I really went to Russia. On this subject I talked with Mr. Kint- chuck, with many officials of Centrosoyus and the other organizations, with employees of co-operative societies, with members, with plain working people of different trades, with intellectuals, and with bourgeoisie. Above all, I saw the Co-operative Move ment in action from many points of view. With English, German and French at my command, and with efficient Russian in terpreters, I dug out much that was instruc tive and interesting. An important discov ery was that whenever I cut loose and went off alone into a group of workers, or any other kind of people, there was always somebody who spoke and understood Ger man. It proves the most useful language to one who does not speak Russian. We remember that there was a big and growing Co-operative Movement in Russia before the war. After the fall of the Czarist regime it grew wonderfully. Then at its period of greatest development, in 1918 and 1919, decrees of the Soviet Govern ment made the co-operatives a part of the machinery of the State; and in 1920 the dis tributive societies were nationalized. The societies were absorbed by the State and co-operation as a voluntary movement dis appeared. In fact, we may say that, legally, co-operation ceased to exist in Russia. This was perfectly natural, and is what should have been expected from a govern ment that was trying to establish Socialism. But it was found that Socialism could not be established in that way and that the millions of members of the co-operative so cieties did not want their societies controlled by the Government. They wanted local autonomy and voluntary Co-operation. The State control of Co-operation did not work. Then the Soviet Government theo retically gave back to the co-operatives their autonomy and freedom by the decree of 7, April, 1921. Now how much freedom from the State actually exists? The critics of present Russian politics, and that means most of the Co-operators of Europe, say that Co-operation in Russia is under the control of the State. On the other hand, the high co-operative officials in Russia claim that their movement has complete freedom and autonomy. The facts are that the Government did release the co-operatives from Government con trol in 1921, but they found themselves set at liberty in a world in which there is no liberty for anybody. Commerce and prop- perty in Russia are controlled by the state as much as possible. That should be perfectly clear because that is the policy of the Russian Government. But where is there a country in the world in which Co operation is absolutely free from the State? Not one. The corporation laws and the taxation laws of every country modify and control Co-operation to a greater or lesser degree. And there is at least one European country outside of Russia in which the Co operative Movement is simply an accessory of convenience to the dominant political party. That is Austria. In Belgium, poli tics is inseparably mixed with Co-operation. In Italy the mixture is so close that the Co-operative Movement rises and falls with the Government. Here are some observations which may or may not be of significance. The old leaders of the Co-operative Movement of Russia are no longer the leaders. The high places are occupied by men who are mostly Communists and who were not trained especially in Co-operation. It is said that the reason for this is that the old leaders were hostile to the Government and that if Co-operation is to make headway it must 50 CO-OPERATION have as its leaders men who can work with the present Government. Since all of the land and houses were confiscated by the Government, it is natural that, if the Co- operators want to get the use of land or buildings, they must negotiate with the Government; and friends can negotiate bet ter than enemies. This makes it expedient for Russian Co-operation to take the course it does. Co-operators in Russia have to take a sympathetic attitude toward Communism to make the path of Co-operation smooth. But this does not mean that they are Com munists or that they desire to see Com munism exalted above Co-operation. By one co-operative official I was informed that the high officials are appointed by the Gov ernment; the lower officers and employees are appointed by the society. This means, I take it, that the Government advises the co-operatives as to who would be most ac ceptable for a high position. The co-opera tives are guided by that advice. It would be inexpedient for the society to go ahead independently and elect somebody who might be distasteful to the Government. Only a small percentage of the employees of the co-operative societies are Communists. After visiting a 'factory, store, school or other co-operative plant I have discussed the general problems with the co-operative officials standing about. Finally we have come to the question, "How many of the members of the society are Communists?" Then, "How many of the employees are Communists?" And then, "How many of the officers are Communists?" And finally I have often gone round the circle and asked each one, "Are you a member of the Com munist Party?" "And you?" "And you?" The answers were apparently frank and fearless and pretty uniform in every place. These observations refer only to August of 1924. In the Leningrad Society it appears that 20 per cent of the employees are Commun ists. A still smaller percentage of the mem bers are Communists. I should judge that about 5 per cent of the members of the co operative societies are Communists. The technical superintendent of a large brewery guessed that 20 per cent of the workers in their brewery were Communists. The same percentage in a macaroni .factory. This seemed to be pretty general—about 20 per cent of employees in the Co-operative Movement are Communists. In a school of 140 children, 12 to 17 years old, the prin cipal said there were 43 Communist pupils. At a Communist demonstration in Lenin grad, there were 100,000 people in the pa rade, but there are less than half that many Communists in Leningrad. The total mem bership of the Communist Party of Russia is 650,000. Practically all of these are members of co-operative societies. This shows that about 5 per cent of the society membership are Communists. This is surely not a great political influence when we realize that the big Co-operative Move ment of Belgium requires that all of the members shall be members of the Social Democratic Party—100 per cent. In many factories I observed two differ ent superintendents, and have the idea that this is pretty prevalent. One is the head director, who is a political appointee and who is not appointed because of his knowl edge of how to run a factory. The other is the technical superintendent—engineer; he was often the superintendent of the fac tory when it was owned by capitalists before the Revolution, and he knows the business. The first is the price the people pay for a dominating government. Russia is pro ducing some technical managers, but the best I saw were from the neighboring coun tries or had been trained in German techni cal schools or industries. They all—for eigners and' Russians alike—seem to be high class men. These are the sort of men upon whom the hope of Russia rests. I have found them to be the kind of men in whom one would have faith. They inspire con fidence. They have ability. They know how to do something better than anybody else. But as yet Russia has not enough of these men who are technical managers. Of the political superintendents, I cannot speak. I have observed them only in their offices busy with their tea, cigarettes, and documents, while the picture of Lenin, with searching eye, looked critically down upon them from the opposite wall. One cannot say that there is co-operative housing in the large cities although the Russians call it such. The buildings belong to the municipality, but the tenants organize what is called a co-operative and they run the house. As a matter of fact it is a ten ants' control committee. The city expects so much rent from a building. The tenants who are workers and organized in their CO-OPERATION 51 trade union pay 10 per cent, of their wages for rent. But if a private merchant or a bourgeois person rents apartments in the house he cannot be accepted as a member of the tenants' organization, and they charge him at least three times the rent the workers pay. If his business is prospering, they make him pay still more—there is no limit to the rent that he may be made to pay. The co-operative societies have large apartment houses for their employees. These are properly co-operative houses. Centro- soyus has several such buildings. One of these in Moscow is the Centrosoyus Hotel. It is used for guests of the society who are visiting Moscow and for foreign represen tatives of Centrosoyus. A recent report from Russia has it that the co-operatives have their own military organizations in the Russian Army. "The Regiment of Centrosoyus" has been spoken of. This is not correct. The fact is that each economic organization contributes a certain specific sum to the military. In some cases a big business pays its quota to a cer tain military organization or takes that mili tary company or regiment under its patron age. Thus Centrosoyus does this, and be cause of the amount of money which is paid to a regiment by Centrosoyus the name of Centrosoyus is inscribed on the flag of that particular regiment. At the great "War against War" celebration in Leningrad on August 6, 1924, my attention was called to this flag passing the reviewing stand. The Co-operative Movement of Russia pays a large tax to support the Red Army. This is by far the largest army in the world; and the Communists say it is their strongest guarantee of peace—just as our militarists say of our army. At this parade I saw 100,000 people pass. There were fully 100 allegorical floats mounted on automobiles. Banners and le gends everywhere. Papers with striking sentences showered from airplanes and ex ploded from bombs. It was a wonderful spectacle. And deeply impressive. As col umn after column of marchers with their hundreds of red flags freely flying, swung past, I said to an official standing by my side, with a Lenin pin on his breast, "I confess with humility that I live in a country where it is forbidden by law to carry a red flag in a parade." He promptly replied, "And I confess that I live in a country in which it is forbidden to carry in a parade any flag but the red flag." The Russians are thoughtful people. They are working themselves out of a very serious situation caused by generations of bad methods. Let us never lose sight of the fact that the bad conditions in Russia are mostly due to conditions which existed be fore the Revolution, and to the civil war, and to the hostility of the Allied Nations. It looks as though the Russians would suc ceed in solving their problems. The most satisfactory and encouraging experience that I enjoyed in Russia, which revealed this fact, was at the Co-operative Club of Moscow. Here is an institution of the intellectuals of the Co-operative Move ment. The club house was formerly "The Hermitage," the finest and most aristocratic restaurant in Russia. It was the rendezvous of the nobility—one of those places where no one was admitted after sunset unless he wore evening dress. The Co-operators took it over. In it are a theatre, a restaurant, banquet halls, meeting rooms, etc. It is a palace. They have there an excellent library of 30,000 volumes, a reading room, and every night lectures or classes to study the problems of Co-operation. There are met the earnest and intellectual young workers in the movement. I was invited to speak there. On that evening, when the questions came back at me, I discovered the heart of the Co-operative Movement of Russia. Everywhere I had seen Co-operation closely tied up to the State. At this meeting I took the position, that, Co-operation to succeed in the United States must be independent of state control and coercion and must be free and voluntary: that, the people in their co-operative societies can do everything of social value that the State can do; that, the aim of the Co-operator should be to increase the functions of Co-operation and diminish the functions of the State until the State has nothing to do and disappears; and, finally that, there is not a class struggle so much as there is a struggle between the co operative principle of voluntary non-politi cal organization and the principle of state- ism, and that it is the duty of Co-operators not to magnify the State but to magnify Co operation. It was a joy to find among the Russian co-operative intellectuals an ap proval of these sentiments. There are men and women in the heart of Soviet Russia who are real Co-operators. And after all it is not surprising. These people support 52 CO-OPERATION the present Government as an instrument in the transition stage from chaos to stable organization; but they do not want Stateism as a goal—they want Co-operative Dem ocracy. When asked, "Do you wish that the dis tributive business run by the Government shall increase or that the co-operative busi ness shall increase?" they answer, "the co operative." This is the acid test of co-op eration. And the Russian Co-operators answer true. One easily sees in Russia, that a Commu nist Government would make Co-operation an instrument to promote Communism. W* might as well face the facts. But in Russia the government is controlled by a compara tively small number of Communists. This control is possible only by the use of force. The number of people who are sympathetic to Co-operation is vastly larger. The moral strength of the Co-operative Movement is incomparably greater than that of any poli tical movement. Let no one get the idea that Russia is rushing pell-mell toward autocratic State- ism. The Communists who would take it there are a small minority. The Co-opera tors outnumber them ten to one. And the Co-operative Movement goes on. It is wide spread and deep in the hearts of the people. It is not spectacular, it makes little noise, it is slow and steady; but it is accepted as a principle throughout Russia. Among the great mass of Russian workers, the farmers —Co-operation is theoretically more accept able than any other plan of action and prac tically it gives them greater satisfaction. Russia is a land of farmers. The working class of Russia are largely farmers. The small minority of industrial workers and theorists of the cities will not be able for ever to dictate the form of organization under which these farmers shall live. Poli tical parties come and go. They have their little reign oif power and they perish. But Co-operation is eternal. The student of Russian problems gets the impression that the Co-operative Move ment of Russia is that country's most hope ful system of organization. Russia is mov ing forward and promises some day to be come a great Co-operative Democracy. Among its Co-operators are earnest stu dents and conscientious workers toward that end. The Co-operators of Russia who are de veloping and protecting this movement are the true builders of the Great Russia. The Co-operators of the world owe it to their Russian comrades to give them loyal sup port. From the League Office Annual Report of the Audit Committee of THE CO-OPERATIVE LEAGUE Presented for the Year Ending Dec. 31, 1924. Members of Committee: Vaino Finberg Olaif Nilsson Mary Ellicott Arnold To the Board of Directors and Members of The Co-operative League: Your Audit Committee has examined the official records of The League and is presenting a report under four heads. First, We have examined and classified in some detail the membership list of The League. Second, We have taken the statement of receipts and disbursements from Octo ber 1, 1923, to October 1, 1924, as published in January issue of "Co operation," and rearranged the items in accordance with certain recom mendations we are making. Third, We have made up a statement of the property, equipment and cash on hand January 1, 1924; a statement which the auditor calls "Present Worth." Fourth, We present some recommendations. CO-OPERATION 53 I. League Membership We approached the membership list primarily to find out what the financial support from the societies has been in order that the figures might aid the Budget Committee. First of all we divided the 337 societies listed into three groups: 1. Those whose dues are paid up: 116 societies. (This includes all who have paid at least $1 a year per society for a period ending in 1925) 2. Those whose dues expired in 1924: 33 societies. 3. Those whose dues have not been renewed since 1923 or before, together with all those from whom the National League has never received dues amounting to one dollar per year per society: 188 societies. CONSTITUENT MEMBERS OF THE UU-OPERATIVE LEAGUE Classified according to -various factors PAID Up LEAGUE MEMBERS —Basis of Less Section of No. of Country Societies NEW ENGLAND - - 7 Conn., Me., Mass. N EW YORK AND NEW JERSEY - - - 23 SOUTH ATLANTIC - 1 N. C., Ala., Tenn., Ky., Md. CENTRAL ----- 4 la., Mo., Neb. SOUTH CENTRAL AND WEST - - - - 4 Ark., New 'Mex., Tex., Calif. Idaho, Ore., Wash., Mon. NORTH CENTRAL - 63 Mich., Minn. No. & So. Dak., Wis. EAST CENTRAL - - 14 Ohio, Ind., 111., Pa., Del., Va., W. Va. __ Amount Dues $1 a year $171.30 1 $1 yr. to lOc per Indirect member Natl. League 100 6 Membership in Societies 15 1 461.70 1.00 15.00 8.00 581.60 92.00 9 100 600 1 5 1 Over Unknown 500 Membership 2 4 58 17 20 10 22 58 25 37 11 43 116 $1,330.60 34 24 Errata The total dues paid by "paid up" New England societies should be increased 70 cents. Note.—Appended to this Report was also a table showing Amount of Business, Kind of Business, and Nationality, of the societies, but specific information was lacking in so many instances that the Audit Committee did not consider these figures highly significant. A table showing geographical distribution of societies whose dues lapsed in 1924 was also ap pended ; these lapsed societies numbered 29. II. Statement of Receipts and Disbursements for the Year Ending September 30, 1924 MEMBERSHIP DUES RECEIPTS Individuals ....................................... $337.75 Societies ......................................... 667.68 $1,005.43 SELF-SUPPORTING ACTIVITIES Services Rendered Speakers ....................................... $ 582.32 Subscriptions Co-operation .......................... $1,122.74 Home Co-operator ..................... 312.29 ——————— 1,435.03 Books and Pamphlets Sold........................... 1,237.36 3,254.71 54 CO-OPERATION CO-OPERATION 55 DONATIONS For office space of League Rents from building.................... 2,137.50 Trust fund ........................... 11,450.00 III. Statement of Present Worth ASSETS For special purposes.................... $2,500.00 Other donations ....................... 388.00 13,587.50 2,888.00 Cash in Bank Beginning of year. .................................$ 1,262.18 Cash Receipts................. .................... 20,735.64 Cash Disbursements. $21,997.82 20,300.66 16,475.50 DISBURSEMENTS OVERHEAD Salaries — general Executive Secretary .................... $2,600.00 Office Secretary ....................... 2,080.00 $20,735.64 Balance in Bank....................................... $1,697.16 Inventory of Books on Hand................................... 1,869.63 LIABILITIES $4,680.00 For Loans $3,566.79 1,500.00 Office Expenses — general Stenographic work ..................... $975.00 Postage .............................. 364.00 Stationery ............................ 117.00 Printing .............................. 345.00 Telephone ............................ 128.00 ——————— 1,929.00 Rent and House Expense League office space Light ................................ $ 61.00 Office furniture ........................ 56.00 » Coal, Repairs, Janitor, etc............... 416.00 ——————— 533.00 ——————— 7,142.00 SELF-SUPPORTING ACTIVITIES Traveling Expenses ................... ............ $ 915.67 Magazines Co-operation (For salary, see Executive Secretary) Printing, postage, wrapping............ $1,212.21 Home Co-operator Salary, ...................... 864.00 Printing, postage wrapping............. 612.81 I ——————— 2,689.02 Books and Pamphlets for sale......................... 484.77 —————— 4,089.46 OTHER ACTIVITIES Office Expense .................................... $1,930.86 Rent and House Expense............................ 533.22 Special organizer .................................. 3,600.00 Special speakers .................................... 941.97 Membership in other Co-operatives.................... 168.50 Books and pamphlets rfor League Library.............. 260.23 Advertising ....................................... 194.68 » Miscellaneous Expense .............................. 107.01 ——————— 7,736.47 $18,967.93 Loans returned ........................................ 1,332.73 $20,300.66 Balance, Present Worth................................. $2,066.79 IV. Recommendations 1. That the quarterly statements sent to the Board of Directors and League members should include: (a) Statement of receipts and disbursements classified so as to bring out the three heads of Membership Dues, Income from Self-Supporting Activities, and Donations on the Receipt side; and the Minimum Office Overhead, Expense of Self-Supporting Activities, and Other Activities on the Disbursement side. (b) A statement of Present Worth, showing cash in bank, inventories, and loans outstanding. (c)* A detailed report on Societies. (1) Changes in membership during period; new members, expired mem berships, withdrawals. (2) Number of member societies (paid up) ; and number who have been in arrears less than one year (separately). (3) Classification of member societies: according to basis of payment—lOc direct, 5c indirect, or $1.00 per year; amount of business, number of members, nationality, kind of business. (d) A full statement of loans outstanding. 2. That a yearly inventory of books, "literature" and periodicals for sale, should be taken at cost price and included in statement of Receipts and Disbursements and of Present Worth. 3. That value of Office space (League House) donated should be incorporated in statement of Receipts and Disbursements. 4. In regard to membership: (a) That member societies of the League be interpreted to include those who have paid dues. (1) Directly, at the specific rates provided in the new constitution, being lOc per member except for insurance, banking, credit and hous ing societies. (2) Indirectly, through district leagues, likewise at rates provided for in the constitution, being 5c per member for distributive societies. (3) Whose membership in either of these classes is not more than one year in arrears, but members-in-arrears shall be so classified in reports. (b) That societies paying $1.00 or more a year but less than regular dues be cause their financial condition or state of co-operative education prevents, be treated practically as members for the definite period of two years, but that reports show them separately from full members. Note.—At a joint meeting of the Audit Committee and the Executive Staff of The League, it was decided that, in view of the annual basis of membership for societies, this report should be made only once a year. 56 CO-OPERATION CO-OPERATION 57 In conclusion your Committee wishes to express its appreciation for the help given by the League staff in obtaining the statistics necessary for the report. The figures have been compiled in the belief that a close co-ordination of the constituent members of the League and their effective financial support of its essential activities depend on their detailed knowledge of the costs of operation and of the number and character of societies already affiliated. A general union of societies can only come through our working together for our common aim and any effective working together depends upon exact information as to the distance we have gone and the contribution we must make in time and money. Respectfully submitted, (Signed) OLAF NILSSON, Secretary. Note.—The original Report was followed by an Appendix (omitted here for lack of space) which contained 1. A classification of all 337 societies that ever claimed membership in The League. 2. A classification of 188 societies who either never paid dues amounting to $1, or who allowed their dues to expire before or during 1923. 3. A further classification of all 337 societies according to Amount and Kind of Business, and Nationality. Directors' Page "What Kffled the Co-op?" A SURVEY covering co-operative fail ures from 1913 to 1923 records ap proximately 1,100 societies that have ceased to function during this time. This study was made by A. W. McKay, of the Bureau of Agricultural Economics of the U. S. Department of Agriculture and deals in the main with producers' undertakings. To balance these failures, Mr. McKay reports that "12,500 farmers' organizations in the United States have survived the diseases of infancy, thrown off some severe economic colic and at this moment, for the most part are enjoying excellent health." The Department of Agriculture made a careful analysis of the co-operative busi ness failures in the state of Michigan and shows the following results for a period of eleven years: "750 organizations were in vestigated. Of this number 539, or 72% are still active; 72 associations, or 9% are listed as out of business; and information regarding the remaining 140, or 19% is not sufficient to permit their being included either as active or dead." This is a fine weapon with which to fight private enter prise propagandists who aim to make the public believe that co-operation is econom ically unsound and destined to failure. Ac cording to the statement of the Department of Agriculture, the percentage of co-opera tive failures is no greater than that of private business. We quote another table to show co-oper ative expansion during the years from 1915 to 1923: "The membership in dairy co operatives has increased from 140,000 to 200,000; the membership in grain co-op eratives has increased from 166,000 to 400,000; in fruit and vegtable co-operatives from 109,000 to about 200,000; in cotton co-operatives from 18,000 to 250,000; in tobacco co-operatives from 17,000 to 290,- 000; in livestock co-operatives from 13,000 to 250,000; in co-operative stores from 59,000 to 150,000 and in all other co-op eratives from 124,000 to 285,000. Mr. McKay points to the principal causes of co-operative failures as the follow ing: (1) Insufficient business; (2) Bad management; (3) Directors not directing, and (4) Lack of loyalty among the mem bers. Much has been said in the columns of CO-OPERATION of these four hangmen of co-operative societies, but it is interest ing to note Mr. McKay's closing state ment: "Co-operatives do not fail because they are co-operatives, but because they are business enterprises subject to business hazards." There are three classes of co-operative stores in this country: stores, warehouses and museums. Which kind are you run ning? A. W. W. What the League Auditor Does: 58 CO-OPERATION The Finnish K. K. and Communism IN the January issue of CO-OPERA TION, Dr. Warbasse in his "Letters from Abroad," writes about his impressions of the Finnish co-operative movement. In the discussion of the K. K. society, the central organization of the progressive wing of consumers' co-operation in Finland, certain statements require correction. The statement is made that "at present not only the officers but the general mem bership of the K. K., are strongly op posed to communism." The fact is that a considerable portion of the general member ship of the K. K., in my opinion, are more or less sympathetic to the communist move ment in Finland. It may be perfectly true that at the time the article was written sev eral of the officers of the K. K. were strongly opposed to communism, but there undoubtedly were also a few among them, who believed that communists could make just as good co-operators as social democrats do. Since the time the article was written, things seem to have drifted even more in the direction of communism, as >far as K. K. is concerned—due to active participation of communistic elements in the progressive co operative movement there. At present the communists have representation even among the officers of the K. K. which they did not previously have. Eino Pekkala, a jurist and a well-known communist leader, has been elected to the administrative council, the highest executive body of the K. K., and Hannes Uksila, another well-known com munist, fresh out of prison where he had been held by the Finnish White Govern ment since 1918, for his active participation in the Civil War of that year, has been elected associate editor of "Kuluttajain Lehti," the official organ of the K. K. Recently, Vaino Hupli, the general man ager of the K. K., has been compelled to re sign. Mr. Hupli was generally regarded in Finland as one of those co-operative leaders who really were strongly opposed to com munism. He has been compelled to resign, in spite of the fact that his abilities as an organizer and manager were equally con ceded by both friend and foe. At the last annual congress of the K. K., which was held at Wiborg, Finland, in June 1924, the delegates from three large workers' co-operatives (those of Abo, Wasa and Kuopio) with a total membership of 12,500, were communists, and there were at least half a dozen other delegates, who in important questions of general policy voted with these delegates against the majority of the congress. At this same meeting it was also brought out that the circulation of "Kuluttajain Lehti" had decreased by sev eral thousands during 1923 chiefly because, it was claimed, its contents had not satisfied the communistic elements. Undoubtedly all this has contributed to the recent changes in the administration and management of the K. K. as well as the edi torial staff of its organ. The purpose of this correspondence has been to do justice to those co-operators in Finland, who happen to be communists. Exponents of true neutrality toward the dif ferent political beliefs existing among co- operators, will welcome an attempt to be fair-minded and tolerant. Let us always be willing to listen to the other side. S. ALANNE. Comment and Explanation IN the February number of CO-OPERATION we stated, in our article on the Second Co-opera tive Training School at Minneapolis, that the small attendance was due to the failure of the Speakers' Service Bureau to give the proper publicity to the enterprise as per the agreement. We have a letter from the Secretary of the Bureau protesting that there was no such agree ment between the Director of the School and himself, and that the failure of the School to attract as large a student body as in 1923 was due to other causes. Mr. Alanne, the Director of the Training School, substantially agrees with the statements made in this magazine, but does agree that Mr. Hedges of the Bureau had very little time in which to do the necessary publicity work and wishes it understood that Mr. Hedges doubtless did the best he could under the circumstances. And so, with the statement that the small attendance at the Minneapolis classes must in large measure be laid to the hurried nature of the work necessary and not at all to any wilful neglect on the part of the Speakers' Service Bureau, we wish to close the matter and as sure Mr. Hedges that we should deeply regret any interpretation of our remarks that might seem to reflect on the sincerity of his work in behalf of the School. C. L. CO-OPERATION 59 PUBLICATIONS — OF — THE CO-OPERATIVE LEAGUE HISTORICAL 3 . Story of Co-operation .......... ...t .10 7. British Co-operative Movement ...... .10 38 Co-operative Consumers' Movement in the United States ............... Per Copy Per 100 .05 39 Consumers' Co-operative Societies in N. Y. State, (Published by Con sumers* League) ................ 10. A Baker and What He Baked (Belgian movement) ...... .... ....... TECHNICAL 9. 27. 2. 14. 15. 29. 32. 43. 50. 51. 16. 46. 11. 12. 33. 13. 34. 30. 41. 42. 53. 54. 5;. 56. 57. 58. 59. How to Start and Run a Rochdale Co operative Society ................ .10 System of Store Records and Accounts .50 A Model Constitution and By-Laws for a Co-operative Society ........... .05 Co-operative Education. Duties of Educational Committee Defined. ... .10 How to Start a Co-operative Wholesale .10 Why Co-operative Stores Fail ....... .02 Co-operative Store Management ..... .10 How to Start and Run a Women's Guild ......................... .05 How to Organize a District Co-opera tive League .................... .10 Credit Union Primer (By Ham and Robinson) ..................... .50 Application Blanks for Membership in a Co-op Society ................. Co-operative Housing ......... .10 A B C of Co-operative Housing. ... .10 Model Lease for Co-operative Apart ment House .................... .10 MISCELLANEOUS Model Co-op State Law ........ .. .10 Producers' Co-operative Industries . .. .10 Control of Industry by the People Through the Co-operative Movement .10 Credit Union and Co-operative Store. . .05 Credit Union and Co-operative Bank.. .05 The Place of Co-operation Among Other Movements ..................... .15 Co-operative Movement (Yiddish) .... .02 "When the Whistle Blew" (Story, by Bnice Calvert) ................. .06 Farmer's Co-operation (By Benson Y. Landis) ........................ .15 Co-op Homes for Europe's Homeless.. .10 Real First Aid for the Farmers....... .05 Credit at Cost for the People....... .05 A Better World to Live In.......... .05 Government That Begins at Home.... .05 How a Consumers* Co-operative Differs from Ordinary Business ........... .02 Making Co-operation Succeed in America ........................ .02 Co-operative Movement in Europe.... .05 ONE-PAGE LEAFLETS $6.00 6.00 4.00 4.00 2.50 1.00 .65 1.75 1.25 (One Cent each; 50 Cents per 100; 32.50 per 500; $4.00 per 1,000). (1) Principles and Aims of The Co-operative League; (18) Do You Know Why You Should Be a Co-operator; (20) Why Lovalty Is Necessary; (21) Cost and Crime of Credit; (22) A Real Co-operator; (25) Resolutions Adopted by A. F. of L.; (26) Factory Workers Co-operate!; (28) Do You Know About Co-operation in Europe?; (40) Have You a Committee on Education and Recreation? ; (44) What 1K the Co-operative Movement?; (45) Schools and Stores; (47) A Man's Right to a Job; (48) Tips to Co- operators; (49) The Way Out: (58) Making Co-operation Succeed in America. MONTHLY PUBLICATIONS CO-OPERATION—(In bundle lots, $7.50 per hundred). Subscription, per year. .................... .$1.00 HOME CO-OPERATOR, 4 pages...........j51.00 per 100 INTERNATIONAL CO-OPERATIVE BULLETIN, (Pub. by The I. C. A.)...........Per Year, $1.50 BOOKS The following books are recommended as containing the best discussions of the modern Co-operative Movement. They may be ordered through The League: Bergengren, Roy F.: Co-operative Banking, A Credit Union Book .............................. $3.00 Blanc, Elsie T.: Co-operative Movement in Russia.. 2.50 Brightwill, L. R.: Animal "Co-op" Book—For Children ................................. Faber, Harald: Co-operation in Danish Agriculture, 1918 .................................... .15 2.75 Flanagan, J. A.: Wholesale Co-operation in Scot land, 1920 ............................... 2.00 Gebhard, Hannes: Co-operation in Finland, 1916.. 2.00 Gide, C.: Consumers' Co-operative Societies, 1921. 2.50 Gide, C.: Consumers* Co-operative Societies, Ameri can edition and notes, 1922. Cloth, $3.00; paper bound .............................. .90 Hall, Prof. Fred: Handbook for Members of Co operative Committees ...................... 2.00 Harris, Emerson P.: Co-operation, The Hope of the Consumer, 1918. Cloth, $2.00; paper bound... .60 Holyoake: Rochdale Pioneers ................... 1.00 Howe, Fred C.: Denmark, a Co-operative Common wealth, 1921 .... ........................ 2.00 Jessness, O. B.: Co-operative Marketing of Farm Products ................................. 2.50 Madams, J. P.: The Story Retold........... .50 Nicholson, Isa: Our Story ..................... .25 Potter, B.: Co-operative Movement in Great Britain 1.00 Redfern, Percy: The Story of the C. W. S......... 2.00 Redfern, Percy: The Consumers' Place in Society, 1920 .................................... 1.00 Smith-Gordon & Staples: Rural Reconstruction in Ireland, 1918 ............................. 1.50 Smith-Gordon and O'Brien: Co-operation in Den mark .................................... 1.00 Smith-Gordon and O'Brien: Co-operation in Many Lands, 1920 .............................. 1.50 Sonnichsen, Albert: Consumers' Co-operation, 1919. Cloth bound, $1.75; paper bound. ........... .75 Steen, H.: Co-operative Marketing .............. 2.00 Stolinsky, A.: The Co-operative Movement. (In Yiddish) ................................. 1.00 Warbasse, James P.: Co-operative Democracy...... 3.50 Webb, B. and S.: The Consumers' Co-operative Movement, 1921 .......................... 5.00 Webb, Catherine: Industrial Co-operation, 1917.... 1.50 Woolf, Leonard: Co-operation and the Future of Industry ................................. 1.00 Woolf, L.: Socialism and Co-operation............ 1.50 Co-operation m Great Britain and Ireland, paper... .25 "The Co-operative Consumer" and "Co-operation." Ill (1917), VI (1920), VII (1921), VIII (1922), IX (1923), X (1924).............. 1.25 Transactions of Second American Co-operative Con gress, 1920 .............................. l.OO Transactions of Third American Co-operative Con gress, 1922 ............................... 1 00 The People's Year Book, 1925. Cloth. $1.00: paper bound ................................... .60 Transactions of Fourth American Co-operative Con gress, 1924 ............................... 1.00 (Ten cents postage should be added for books which cost more than $2.00, and five cents for the smaller books.) HI-"" 111 THE CO-OPERATIVE LEAGUE (Member of The International Co-operative Alliance) 167 West 12th Street, New York An educational organization for teaching the history, principles, methods and aims of the Co-operative Movement and for the promotion of Co-operation in the United States. Join The League and thus help promote the educational work of the Co-operative Movement. Subscribe for the Monthly Magazine and keep in touch with the Movement. Enclosed find $........ .for D Subscription for CO-OPERATION - $1.00 D Membership in The LEAGUE - - $1.00 Name Address Co-operative Central Exchange Wholesale Grocers and Jobbers, Bakers We supply goods to Co-operative So cieties ONLY. We are owned and con trolled by Co-operative Societies. We are organized to enable Co-opera tive Societies to do collectively what they cannot do individually. Co-operative Central Exchange Offices, Warehouses and Plant: Winter Street and Ogden Avenue SUPERIOR, WIS. Co-operators' Ltd. Mutual Fire Insurance Co. is now writing insurance in State of Wisconsin. THE PRODUCER Issued Monthly Price 3d. If you want to keep in touch with business, organization, administrative affairs, and problems of the British Co-operative Movement, read THE PRODUCER. Published by CO-OPERATIVE WHOLESALE SOCIETY, INC. 1 Balloon Street, Manchester Post free 4 sh. 6d. a year. The Trade and Technical Organ of British Co-operation. THE NEW SECRETARY'S LEDGER Just published by the Educational Department Central States Co-operative Wholesale Society (203 Converse Ave., E. St. Louis, 111.) is the form for keeping the Membership Ledger of a Co-operative Society which provides ample and proper space for all transactions with a maximum of effi ciency and a minimum of time, worry and errors. Send for Samples and Prices Co-operation in Scotland In no part of the world is Co-operation further developed, or more successfully practiced than in Scotland. If you wish to keep informed, read "The Scottish Co-operator" (Published Weekly) Subscription: Year 12 sh.; Half-year, 6 sh. Address: 119 Paisley Road Glasgow Scotland The Madras Monthly Bulletin of Co-operation ROYAPETTAH, MADRAS, INDIA The only monthly on Co-operation in India. Special articles on Rural. Con sumers', Agricultural, Credit and Indus trial Co-operation; and Co-operation Abroad. Subscription Rs. 4 '12 per annum. The Canadian Co-operator Brantford, Ontario, Canada The organ of the Canadian Co-operative Movement, owned by and conducted under the auspices of The Co-operative Union of Canada. Published Monthly 75c PER THE HOME CO-OPERATOR A four-page magazine for use in co-operative societies. Issued monthly, in bundles, $1 per 100 Published by The Co-operative League Address: ALBERT SOXXICHSEX, Managing Editor Wiilimantic, Conn. (MOTION A magazine to spread the "knowledge of the Co-operative Movement, whereby the people, in voluntary association, produce and distribute for their own use the things they need. Published Monthly by THE CO-OPERATIVE LEAGUE 167 West 12th Street, New York City J. P. WARBASSE, Editor Entered as Second Class matter, December 19, 1917, at the Post Office at New York, N. Y., under the Act of 'March 3, 1879. Price $1.00 a year. VOL. XI, No. 4 APRIL, 1925 • 10 CENTS PROPERTY of the Finnish Co-operative Trading Association, Brooklyn, N. Y. First floor right, Butcher Shop and Grocery Store. First floor corner, Retail Bakery. First floor left, Restaurant. Entire second floor, Bakery Plant. Third floor, Offices and Pool Room. Down the street beyond Jthis building may be seen three of the co-operative apartment houses. 62 CO-OPERATION in,! I Seven Strides Onward Toward the Co-operative Commonwealth 1T\OES Co-operation succeed in a large American city? New York is the largest "^^^ city in the world. And in the Bay Ridge section of Brooklyn Borough is a com munity of co-operative working men and women that is gradually appropriating to itself more and more of the business of the neighborhood, until it is now fairly in a position to boast that it handles more different kinds of business under co-operative rules than any other community in the country. The following is the story of the principal types of economic activity in which it is engaged. FINNISH CO-OPERATIVE TRADING ASSOCIATION It was during the war that a group of these people decided to begin their co operative organization. The first two co-operative apartment houses were built in 1916, and at the same time the work started dn the organization of the Co-operative Trading Association. In 1918 the large block shown on the preceding page was ready for occupancy, and a bakery plant was installed. Within these six years the business has grown by leaps and bounds. The land, building aiid equipment cost the Association $178,593, and they own this free and clear of mortgages. The paid in capital and the loan capital now amounts to $108,153, and the surplus built out of earnings for the six years to $34,383 additional. In 1924 the net earnings were more than $13,000 on the business of producing and distributing bread, running a restaurant, butcher shop, grocery store and pool room. The Bakery \ear by year this' bakery business has expanded until the ten trucks are now covering a territory which includes Brooklyn, Manhattan, and an extensive area of Northern New Jersey. Flour is purchased in carload lots from the Co-operative Wholesale in Superior, Wisconsin. Two retail stores, one in the main building and the other in the Harlem section of New York, are selling the bread, cakes, cookies, pastries and rolls direct to the ultimate consumer, while the trucks are delivering both to the individual consumer and to private stores. The Grocery and Meat Store The other little store tn the main building started purely as a butcher shop, but now carries almost a complete line of groceries as well. Next to the bakery, this is the most prosperous department being operated. The manager here has the purchasing power which greatly helps the restaurant in procuring its raw materials at a low cost. The Restaurant Several years ago an independent group rented the room on the first floor, 43rd Street side of the building and opened a restaurant. The central association bought out this business late in 1923 and opened its own restaurant department. 1924 Was the first year of operation and showed a loss, but the business is now gaining a little each month. The little restaurant is immaculately neat and clean and the furniture and fixtures are of the best. Food is served both a la carte and on the weekly table- board plan. Many of the members, especially where the mothers of the families as well as the fathers are working, bring in the entire family two or three times a day and use this as their community dining room. The Pool Room The pool room was opened on the top floor to provide a place in the co-operative for the young fellows who would otherwise lose themselves in the saloons and question able gaming resorts of the city. These workers did not intend that it should be said of them that they could not hold the second-generation foreigner to an idealist econ omic and social program. That this pool room has been a good investment is scarcely shown by the favorable balance sheet for the department for 1924 (with a gain of $1,359). The value of the investment appears in the continued loyalty of these young fellows to the co-operative institutions which their elders are building and the readiness CO-OPERATION 63 with which they throw their funds and their energies into the same work just as soon as they attain the wisdom of later adolescence. THE following is extracted from the Report of the Co-operative League Audit Bureau which made the audit of the books of the Finnish Co-operative Trading Association at the end of 1924. Bakery Total Total Sales-Income...... 355,634.44 186,622.60 Raw Material and Mdse. 210,220.36 81,898.35 Less—Inventories ....... 8,721.25 6,759.98 Cost of R. M. and Mdse. 201,499.11 75,138.37 Harl. Branch Meat Market 3,404.95 89,377.43 74,984.70 1,589.58 2,896.96 74.00 2,822.96 73,395.12 Restaurant 64,114.75 48,345.99 297.69 48,048.30 Pool Room 12,114.71 2,094.36 2,049.36 Gross Gain ............ 154,135.33 111,484.23 581.99 15,982.31 16,066.45 10,020.35 Less—Expenses ......... 140,297.54 98,305.71 1,402.17 12,924.29 19,004.18 8,661.19 Net Cain (Loss).... 13,837.79 13,178.52 (820.18) 3,058.02 (2,937.73) 1,359.16 SUMMARY OF PROFIT AND LOSS Net Gain from Manufacturing and Trading................ 13,837.79 Other Income—Int. Earned............................. 603.85 Cash Discounts ........................................ 190.08 14,631.72 Deduct—Deficit on building account. ................. 1,571.72 Net Gain to Surplus............................ 13,060.00 BALANCE SHEET, JANUARY 1, 1925 ASSETS : Total Cash ................................ 15,782.15 Accounts and Notes Receivable ................ 3,080.52 Stocks and Securities ........................ 785.00 Inventories ................................ 8,721.25 FIXED ASSETS : Land ................................... 7,050.00 Building ................................ 108,510.93 Furnish, and Equipment.................... 63,032.7,2 Total cost val. ....................... 178,593.65 Less—Res. depr. ...................... 48,130.78 Net value of fixed assets...................... 130,462.87 Deferred charges to oper. .................... 1,225.68 Total Assets ..................... 160,057.47 LIABILITIES : Notes Payable ............................ 63,653.00 Interest Accrued ......................... 10,463.05 Rebates Payable (1923).................... 7,047.36 Balance Educational Fund. ................. 10.61 Total Liabilities .................. 81,174.02 NET WORTH: Capital Stock, per L. ...................... 44,500.00 Surplus ................................. 34,383.45 Total Net Worth ................. 78,883.45 Total Liabilities and Net Worth;., ., 160,057.47 64 CO-OPERATION The Riverview Co-operative Apartments families make up the Riverview Co-operative Association. They first organized in 1923, bought a corner plot at 41 st Street and Seventh Avenue, and employed one of their own members, Arthur Kuusenoksa, as Construction Super intendent. At the completion of the job, the members were perfectly familiar with the entire process of construction and all the materials that went into their home. They had "built their own homes." And by eliminating the huge fees to contractors and second mortgage brokers, they had saved many thousands of dollars. OTHER COMMUNITY CO-OPERATIVES Co-operative Housing Many people consider the co-operative apartment houses built by these same people even more significant than their progress in the field of co-operative production and distribution. Here one m.ay see how co-operative home ownership may be fostered by means of co-operative credit. The picture above is but one of 15 that might be shown. Nine years ago wften "The First Co-operative Homes Association" was organized and two adjoining houses built and occupied by the members the real estate interests in the country had their first glimpse of co-operative housing in America. The members of that group put up $500 apiece to cover initial costs of land purchase and construction, obtained a first mortgage from a bank, borrowed other funds from a co-operative banking group in Massachusetts, and moved ipto large, five-room apartments for which they paid $27 CO-OPERATION 65 a month rent. Real estate assessments have gone up since then and the members are now paying $32 a month, but they have never had to add anything to that initial $500 except the regular amortization in rental charge. The second mortgages are now entirely cleared. Other workers in the neighborhood are paying to private landlords $70 and $80 for apartments that are not as good. The "Riverview," shown here is one of the more recent houses. There are 32 apartments of 4 or 5 rooms each, and one for the janitor. Total cost of construction was $170,000. Each member put in $300 per room (which would mean $1,500 for a five-room apartment) ; a first mortgage of $70,000 was placed with a local bank, and the balance was raised from the well-known method of negotiating "Comrade Loans." These loans are procurred from fellow co-operators in the neighborhood who make loans to the housing group at 5% on notes. Every one of the apartment houses built since the first two has solved the second mortgage problem by means of these "Comrade Loans." As there are 104 rooms in the "Riverview," the cash paid in by members was about $31,200, and the amount raised from "Comrade Loans" about $68,800. One of the members of the group Was an experienced builder, so he was made construction superintendent, and worked for a weekly wage. Through buying many of the materials himself and hiring much of his labor by the day, he eliminated large contractors' fees. Every week during the entire process of construction he met with the whole group and they together went over all the details involved in building their home. The excellent quality of materials used, the unusually fine workmanship, and the low cost are all due to this careful oversight of the whole job by the whole member ship. The same man is now in charge of a new co-operative house being started on the next block; the largest of them all, with 45 apartments. The Co-operative Garage SUNRAY CO-OPERATIVE GARAGE is just a year old and is one of the newer co-operative experiments. Organized late i,n 1923, by 26 owners of cars, the enterprise has made a surplus during this first year of $600. At the beginning each member paid in $250, which amounted to $6,500. The other $13,500 necessary to complete the twenty thousand dollars which is the gross cost of the building was raised through Comrade Loans. Each member pays $8 per month for the space and service he receives (private garages across the street and 'riext door charge $12 a month). This is enough to pay the mechanic in charge a monthly salary, cover all operating expenses and fixed charges and return 6% on the members' investment. Gasoline is sold at the market price, but oil, tires and other supplies are sold much below market because the members see no reason for making 40 and 50% profit on themselves. WHAT DOES IT ALL MEAN? "You have money in a good many different co-operatives?" one of these men was asked. "Sure. We don't use banks any more. That's all nonsense." These men and women are definitely proving that it is all nonsense—provided you have well-informed co-operators to work with and soundly established co-operatives to invest money in. The average worker in America turns all the money he receives right back into capitalist business institutions. These two thousand workers in the Bay Ridge section of Brooklyn are careful to spend every possible cent of their wages at their co-operative institutions. And what money they save they invest in their own co-operative institu tions as well. That is how they come to have title to nearly two million dollars worth of real estate. And that is the explanation of the fact that there are no wealthy people among them, and none that are really poor. 66 CO-OPERATION CO-OPERATION 67 Vital Issues Killing Miners TOURING the past ten years accidents *-^ in coal mines in the United States killed an average of 2,466 men and injured 150,000 a year. Twenty times during the past two years the newspapers have told the story of coal mine explosions. In the eighteen most recent disasters 767 men were killed. Coal mining need not be a dangerous business. If the stockholders were the people who had to go down into the mines and dig out the coal it would be made safe as going to a movie show. Why is it so dangerous now to miners? The cause of these explosions is known. The means for preventing them are also known. Why do they continue? One reason is that it would cost the mine owners some money to use the measures that would prevent the accidents. It is cheaper to let the miners be killed than to use the safety devices. There are too many miners. Miners are cheap. The stockholders are hungry for profits. The cost of preventing these disasters is one-fourth of a cent per ton of coal. Let us say this again: one-fourth of a cent per ton of coal. That is what it would add to the cost of production to introduce the de vices that would prevent the explosions that killed 767 men in the last two years. Some say that our law-makers should compel the mine owners to safeguard the lives of their miners. This scheme does not work because the law-makers are the rep resentatives of the mine owners more than they are of the miners. That is the reason this method is appealed to in vain. There are two better ways to get results: One is for the miners, by more effective industrial action to prevent the disasters themselves. That means that they refuse to go into mines that are without the equip ment to prevent the disasters. If they were better organized they would use this method. The other method is that coal should be mined for the purpose of use—to keep folks warm and to make fires for the service of the people—instead of for profits for the mine owners. If the users of coal were the owners of the mines, the miners would be among the owners and if every owner had only one vote in running the mines, no body would have any more voice in the industry than the miner himself. Some day perhaps these things will come to pass. They have at Shilbottle, England. The miners in the Shilbottle coal mine are not subjected to these dangers. This mine belongs to the Co-operative Wholesale So ciety. It produces coal for use. It also gives miners steady work, good stone houses to live in, two weeks vacation with pay—and it saves miners' lives. Drifting Along with the Farmers TT has always been a mystery to us just •"• why a group of farmers signed that "Report to the President by the Agricul tural Conference on Agricultural Legisla tion for Submission to the 68th Congress." The report advocates a protective tariff when what we think the farmers need are markets and a free flow of commerce. It would "allow co-operatives a freedom to develop without governmental inter ference or domination, except for the very proper police powers lodged with the Secre- tary of Agriculture under the Capper-Vbl- stead Act." That a "fostering attitude" on the part of the Government towards co- operatives is "essential" will not be agreed to either by everybody. This act permits I and authorizes the Government to snoop into every detail of the business of co operative societies, and requires them to submit their records to the Government; whereas private business, profit-making cor porations, big and little are free from such Government interference with their affairs. I Co-operators know that competition | exists. Their competitors want the facts and figures about co-operators and they will want them increasingly as the movement grows larger. This plan would make it possible for them to be had. Co-operative societies would be a sort of open book for the inspection of their competitors. There are lots of good things in this re port also. The difficulty is that by the time a program such as this gets into operation, the things that are really good for the farmers are eliminated, quashed, or nulli fied, and the things that are good for the business of trading in farm produce and lending farmers money are put into opera tion. This is an example of what may be one of the good recommendations: "The Con ference is in favor of legislation which re quires that specific statements be placed on all woven fabrics and garments made from fabrics purporting to contain wool, shoddy cotton and silk of which they are made." There is a good idea. But it is in the in terest of nobody but the consumers. It does not represent class legislation. It has not the ghost of a chance to become a law. We are interested in these acts which have to do with farmers' productive organ izations because any legislation which affects them will sooner or later be trans lated over to affect consumers' co-opera tives. And farmers selling organizations are organizations of consumers also. In some cases they buy as much as they sell. We are all in the same boat drifting along down stream together. We should all be looking out for snags. What upsets one will upset the other. J. P. W. Do Large Corporations Govern This Country? SECRETARY MELLON, of the Uni- "^ ted States Treasury, says he does not approve of the bill which would compel all government employees to file publicly their corporation affiliations. Apparently Mr. Mellon does not want the public to know how completely some of the departments of our government at Washington are domi nated by huge corporations. The following list, according to the National Farmers' Council, gives the mammoth corporations of which Mr. Mellon himself is either President, Vice-President or Director. BANKING: Mellon National Bank, President, Pittsburgh, Union Trust Com pany, Vice-President, Pittsburgh, Union Savings Bank, Vice-President, Pittsburgh, National Bank of Commerce, Director, New York. INDUSTRIAL: Aluminum Company of America, Aluminum Cooking Utensil Com pany, Aluminum Ore Company, American Locomotive Company, American Metal Company, Ltd., Baltimore Car & Foundry Company, Butler Bolt & Rivet Company, Butler Car Wheel Company, Crucible Steel Company of America, Carborundum Com pany, Electric Carbon Company, Forged Steel Wheel Company, Gulf Oil Corpora tions, Vice-President, H. Kleinhans Com pany, The Koppers Company, The Mc- Clintic-Marshall Company, The McClin- tic-Marshall Construction Company, Mel- lon-Stuart Company, Middleton Car Com pany, Minnesota By-Product Coke Com pany, Monongahela River Construction Coal & Coke Company, Pittsburgh By- Product Coke Company, Pennsylvania Railroad Company, Pittsburgh Coal Com pany, Pittsburgh Modern Engine Com pany, Pressed Metal Radiator Company, Riter - Conley Company, Riter - Conley Manufacturing Company, Robert Grace Contracting Company, Seaboard By-Prod uct Coke Company, Standard Motor Truck Company, Standard Steel Car Company, Steel Car Forge Company, Union Ship building Company, United States Alumi num Company, Verona Steel Casting Com pany. MISCELLANEOUS : American Surety Company, Trustee, New York; Apollo Water Works, Burrell Improvement Com pany, J. J. McCormick & Company, Leech- burg Water Works Company, Long Sault Development Company, Lyndora Land & Implement Company, Monongahela Light and Power Company, National Union Fire Insurance Company, Vice-President; Penn sylvania Water Company, Pittsburgh & Birmingham Company, Tri-Cities Water Company, Union Fidelity Title Insurance Company, Union Improvement Company, Union Insurance Company, President. We have seen no better argument any where for publicity regarding the corpora tion affiliations of public officers. We also wonder whether, under govern ment ownership of these particular cor porations, we would have a very different kind of man in Mr. Mellon's office. C. L. 68 CO-OPERATION Why Co-operation Is Not Enough" From the Socialist Standpoint By DANIEL W. HOAN, Mayor of Milwaukee TT is by no means an easy task for one —*• who holds so high an opinion of the Co-operative Movement to write upon the subject assigned. I shall, however, state why, as a Socialist, I deem this movement insufficient as a complete solution of our social and economic ills. I will state at the outset that true co- operators must subscribe to the proposition that the capitalist system is in a state of disintegration. To believe otherwise is to deny the possibility of its being gradually superceded by the Co-operative Common wealth. The fact is that all history teaches us that every institution based on principles of greed and selfishness has perished. Take for example, past nations such as Rome, Greece, Assyria, Phoenicia, Babylon, etc. All that survives from these nations are some of their works of art, sculpture, archi tecture, classical literature, and true prin ciples of religion. True Co-operation is based on ideals of justice, brotherhood and service. If a civi lization can be built on such ideals it will not only survive but be imperishable. The big problem that looms to the fore front is whether or not the working classes —who must of necessity be the prime movers in the promotion of the new ideals —can work rapidly enough to overtake the collapse of the civilization based on capi talistic industry. The World War may be used to illustrate this point. Few realized that so great a calamity would overtake us. It came in spite of the Co-operative Move ment, the Socialist Movement, the Trade Union Movement, the Church, or any other organized effort in the direction of peace and good-will toward man. It strikes me that if Co-operation is to make sufficiently rapid progress to over come similar or future catastrophies, work ing class solidarity must be rapidly ad- * This is the second in a series of articles on the subject. The question was treated last month from the Anarchist's point of view and was written by Harry Kelly. vanced. Any movement therefore which has for its end the teaching that progress in the future depends largely upon the solidarity of the working people is not only necessary but merits the commendation of all. The Trade Union Movement and the Co-operative Movement deal with the ceonomic life of its members, while the Socialist Movement promotes the political welfare of the workers. All three made mistakes and perhaps serious mistakes. All have profitted by these mistakes. It has however, taken years of painful effort to direct these varied schools along the lines of building on firm foundations. I am not seriously concerned about the mistakes of any of them, except as a means of helping all three to avoid them in the future. It is undoubtedly true that many Social ists over-emphasize the political activity that the State should undertake. It is like wise true that many Trade Unionists have an exalted opinion of what unionism may accomplish. I also believe there is great danger of the Co-operator thinking that he alone can paddle his own canoe without the assistance of the organized efforts of the other two movements. I believe that no true friend of social progress should waste one iota of time debating about the use- lessness of the efforts of either of these groups, but should wholeheartedly support all three. We would lend our efforts in correcting errors in the policies of any of them. I believe that the Co-operators should work with the trade unions to show to them the necessity of their members sup porting the Co-operative Movement. Like wise should they work with the Socialists and demonstrate to them that they should lend their efforts in that direction. Why should not the Trade Unionist and the Socialists support the Co-operative Move ment and promote it as rapidly as possible? I subscribe to the principles of the So cialist party, namely: The collective own CO-OPERATION 69 ership and democratic management of all monopolisticly owned and controlled means of productive distribution. My interpre tation of that purpose is that we should extend the principles of Co-operation as rapidly and as far as it is humanly possible in the affairs of men. I should not want the State or municipality to engage in a single enterprise that can be successfully conducted on the basis of true Co-operation. I have lent my efforts in having the So cialist national conventions of this country express tehmselves in resolutions favorable to the Co-operative Movement. I would even add that I would very deeply regret a condition where the Co-operative Move ment developed so slowly that it became necessary for a municipality, state, or na tional government to operate all such monopolisticly owned and controlled activi ties. I do submit however, that the Co operative Movement will make the greatest headway in places where a true spirit of comradeship is developed among the workers. I believe that before the Co-op erative Movement will make satisfactory progress in this country there must be de veloped, through the Trade Unions, and through the political activities of the work ing class, whether it be through a Socialist Party or Labor Party, a greater feeling of solidarity. The spirit of individual selfish ness can only thus b< overcome. WTiat is often forgotten is that the Trade Union Movement in Europe has prepared the soil for the political movement. I believe that both of these have helped in turn to fer tilize the efforts of the workers for a healthy development of the Co-operative Movement. The opponents of Co-operation are alto gether too powerful, especially in the Uni ted States, to be fought single handed by any one of these movements. The Trade Union Movement is abso lutely powerless in the United States to day to accomplish its great mission without the aid of a political party to express its needs. The organized opponents of Co operation are the same characters the world over who oppose the Trade Union Move ment and the political activities of the workers. They fight both with their econ omic and political power. They, time and again have used the powers of government to hamper the development of Co-operation as well as that of the Labor Movement. In brief, I do not believe that any one of the three organized efforts mentioned have reached perfection. Neither do I think they will make satisfactory progress with out the help of each other. My purpose in writing this article surely is not to convince any one that the Socialist Movement by itself is a panacea for all ills, it is merely one of the efforts of the workers to bring about the co-operative commonwealth in a peaceful, orderly man ner. The fact is, civilization itself rests on a too insecure foundation to waste any time in quibbling among ourselves. I trust that these articles will lend their influence in promoting good will among the various organized efforts of the workers to the end that we may be of assistance to each other in avoiding mistakes and in the ultimate accomplishment of a higher and nobler civilization. I have some strong opinions that the State as such must of necessity socialize several activities rather than delay for co-operative methods. Space and lack of time have actuated me to con fine my article to these reasons why the Co-operative Movement alone will not suffice. Austria, Co-operation Mixed with Politics By J. P. W. *T ......... ror rj Membership in The LEAGUE - - $1.00 Name Address Co-operative Central Exchange Wholesale Grocers and Jobbers, Bakers We supply goods to Co-operative So cieties' ONLY. We are owned and con trolled by Co-operative Societies. We are organized to enable Co-opera tive Societies to do collectively what they cannot do individually. Co-operative Central Exchange Offices, Warehouses and Plant: Winter Street and Ogden Avenue SUPERIOR, WIS. Co-operators* Ltd. Mutual Fire Insurance Co. is now writing insurance in State of Wisconsin. THE PRODUCER Issued Monthly Price 3d. If you want to keep in touch with business, organization, administrative affairs, and problems of the British Co-operative Movement, read THE PRODUCER. Published by CO-OPERATIVE WHOLESALE SOCIETY, INC. 1 Balloon Street, Manchester Post free 4 sh. 6d. a year. The Trade and Technical Organ of British Co-operation. THE NEW SECRETARY'S LEDGER Just published by the Educational Department Central States Co-operative Wholesale Society (203 Converse Ave., E. St. Louis, 111.) Is the form for keeping the Membership Ledger of a Co-operative Society which provides ample and proper space for all transactions with a maximum of effi ciency and a minimum of time, worry and errors. Send for Samples and Prices Co-operation in Scotland In no part of the world is Co-operation further developed, or more successfully practiced than in Scotland. If you wish to keep informed, read "The Scottish Co-operator" (.Published Weekly) Subscription: Year 12 sh.; Half-year, 6 sh. Address: 119 Paisley Road Glasgow Scotland The Madras Monthly Bulletin of Co-operation ROYAPETTAH, MADRAS, INDIA The only monthly on Co-operation in India. Special articles on Rural, Con sumers', Agricultural, Credit and Indus trial Co-operation; and Co-operation Abroad. Subscription Rs. 4/12 per annum. The Canadian Co-operator Brantford, Ontario, Canada The organ of the Canadian Co-operative Movement, owned by and conducted under the auspices of The Co-operative Union of Canada. Published Monthly 75c PER ANNUM THE HOME CO-OPERATOR A four-page magazine for use in co-operative societies. Issued monthly, in bundles, $1 per 100 Published by The Co-operative League Address: ALBERT SONNICHSEN, Managing Editor Willimantic, Conn. C(H)7£RATION A magazine to spread the knowledge of the Co-operative Movement, whereby the people, in voluntary association, produce and distribute for their own use the things they need. Published Monthly by THE CO-OPERATIVE LEAGUE 167 West 12th Street, New York City J. P. WARBASSE, Editor Entered « Second Class matter, December 19, 1917, at the Post Office at Nev, York. N. Y., under tke Act o/ March 3, 1879. Price $1.00 a year. VOL. XI, No. 7 JULY, 1925 10 CENTS •I e .. I .W'.-ia£2-.~'>' J£i^* ...».- - ?*. The Farmers Union Co-operative Association of Clarkson, Nebraska,—a typical store and grain elevator of the Farmers Union State Exchange. This co-op has gram, lumber and coal for sale. 122 CO-OPERATION THE FARMERS UNION STATE EXCHANGE THE Farmers Union State Exchange of Omaha, Nebr., is a co-operative merchan dising institution that supplies goods to co-operative stores, co-operative grain elevator associations, and other local co-operative associations handling merchandise, and also directly to farmers on individual orders and through the buying agents of Farmers Union locals. It also operates a "chain" of nine branch stores. Sales of the Exchange in 1924, exclusive of the retail sales of the branch stores, totalled $1,347,605.00. Of this total, about 55% consisted of sales to stores and other incorporated associations; about 30% of sales to individuals and buying agents of Farmers Union locals, and about 10% of goods sent to branch stores. The Exchange handles a long list of merchandise, including groceries, work cloth ing, binder twine, farm implements, feeds, seeds, produce, oil, fencing, fence posts, paints, automobile tires, coal and salt. Groceries lead in volume, measured in dollars, representing about 25% of the total. Binder twine constitutes about 16% of the total; seeds and feeds about 16%, and farm implements about 10%. About one-third of the merchandise supplied by the Exchange last year was shipped in carload lots. Such shipments usually go directly from mine or factory to their destination. Coal is always handled this way, most of the salt, and a great deal of the twine. Often the farmers take the goods directly from the car, thus still further reducing handling costs. The heavy losses suffered by the Exchange in the severe agricultural depression following the slump of 1920, which ate up about half of the share capital, ceased nearly two years ago, and good profits, or surplus savings, are now being shown. The net profit for the year 1924 was $20,647.92, and for the first quarter of this year $9,615.51. By agreement among the shareholders, the deficit has been wiped off the books by reducing the face value of the shares from $25.00 to $12.50. This leaves a share capital of $344,362.50. In addition, the institution at the end of the first quarter this year had a surplus of $15,865.00. With no debts except current bills, the Exchange is in a strong financial position. Current assets amount to $318,135.02, and current liabilities to only $50,410.00. HISTORY To understand the Farmers Union State Exchange, it is necessary to know some thing of its history. This institution was founded in 1914 by the Farmers Educational and Co-operative State Union of Nebraska (called Farmers Union for short), which is a division of the Farmers Educational and Co-operative Union of America. It was set up as an unincorporated department of the state organization, in charge of the state secretary, to serve as a buying agency for Farmers Union locals. There were no co-operative stores in the state then. The Exchange operated entirely on a brokerage basis at first. As the business grew, however, it was found necessary to carry some goods in stock. Funds were supplied from the Farmers Union treasury for this purpose, a building was leased, and a manager employed. At the beginning of 1917, the funds supplied by the Farmers Union, together with the surplus accumulated from profits, amounted to about $20,000. Additional capital was obtained by borrowing from the banL PHENOMENAL GROWTH OF STORES About this time, the members of the Farmers Union in Nebraska, without any particular encouragement from the leaders of the organization, began to organize co operative stores—organized them so rapidly that the state office could not keep track of all the new ones. Evidently, the members desired the convenience of local stocks of goods. These stores immediately began to do most of their buying from private whole sale houses. Nevertheless, the business of the Exchange continued to grow. CO-OPERATION 123 C. MCCARTHY, General Manager Farmers Union State Exchange In April, 1917, the Exchange was in corporated, to give it a better commercial standing. The ownership still remained in the Farmers Union of Nebraska, the shares being held in trust by the mem bers of the board of directors. This ar rangement continued until 1919, when the state convention of the Farmers Union voted to reorganize the Exchange as a co-operative association, the shares to be held by individual members of the Farmers Union. At that time, there was no law in Ne braska permitting one co-operative asso ciation to hold shares in another. Conse quently, the plan of reorganization adopted by the convention contained no provision for linking up the co-operative stores and other local associations to the wholesale. Shares were sold only to in dividual members of the Farmers Union, therefore, in the share-selling campaign. Soon after the state convention in 1919, however, the Nebraska legislature enacted a law, drafted by the Farmers Union, permitting one co-operative to hold shares in another. When the share holders of the new Exchange met on June 30, 1919, to effect the reorganiza tion, they took advantage of this law by providing for association shareholders. Under this provision, 29 co-operative associations have become shareholders in the Exchange— out of a present total of about 175 stores and 250 elevator associations in the state organized by Farmers Union members. The foregoing shows that the Exchange is not on a strictly Rochdale basis, and explains why. It should be understood, however, that the shareholders in the local associations and in the Exchange are largely the same persons, so that the system, dis jointed as it may appear, is, after all, a big family affair. Furthermore, the difficulty of assuring democratic control usually experienced in wide-area co-operatives having individual members is very largely obviated by holding the annual meeting of the shareholders of the Exchange in the same week with the state convention of the Farmers Union, and allowing shareholders to represent other shareholders in the same Farmers Union local or co-operative association. DUAL WORKING BASIS The Exchange was founded to supply goods to members of the Farmers Union. In many localities in the state, the members have not organized co-operative stores. In other localities, their stores have failed. These members desire to buy direct from the Exchange. True to its purpose, the Exchange sells to them. Association managers object to this direct selling, although price lists are not sent into the territory of asso ciations that buy liberally from the Exchange. While opposing direct selling by the Exchange, many managers of local associa tions do not themselves support the Exchange well. Perhaps not more than 10% of the goods purchased by the co-operative associations of the state come from the Ex change. The rest of their business is scattered among private wholesale houses. Never theless, the business with the associations is increasing, and, as the above figures show, now constitutes more than half of the total. Members of the Farmers Union are not agreed upon the advisability of having co-operative stores. Many of them believe that ordering goods through the Farmers 124 CO-OPERATION Union locals is the better plan. The popularity of this method has been very much restored by the hard times through which farmers have been passing. It does make a greater saving, of course, but at the loss of convenience. Other members would like to see all of the co-operative buying done through incorporated associations, and these linked up with the Exchange through the ownership of shares, in true Rochdale fashion. Members of the Farmers Union in Nebraska will tell you they are not sure where the Exchange is going, but that its sound financial condition and increasing business shows it is on the way. It is so organized that it can continue on the present dual basis, with individual shareholders, or it can be worked over gradually to a federation of the local associations by taking up the individual shares and placing them with the associations. The branch stores were established by the Exchange chiefly to make an assured outlet for goods and improve the buying power of the institution through increased volume. No new links have been added to the "chain" for more than a year, and if the independent co-operative stores would support the Exchange fully, no more links would be added. RAVAGES OF DEFLATION As previously mentioned, the Exchange has been through a tight squeeze. When the deflation struck in 1920, it was heavily stocked with high-priced merchandise. Losses on these goods were enormous. Sales fell from $2,794,022.69 in 1919, the year before the slump, to $1,148,0069.56 in 1922, in the trough of depression. The decline was mostly in prices, for the volume of goods moved was about the same. In February, 1922, the board of directors put one of their own number in charge as manager, Mr. C. McCarthy of York County, a lifelong farmer. By rigorous reduc tion of expenses, and by closing out the surplus goods and paying debts, the Exchange has been brought, under his management, to its present strong position. When by good management and loyal support the Exchange was restored to a profit-making basis, it was confronted with the Nebraska law prohibiting the payment of dividends by a corporation having a deficit on its books. Accordingly, the share holders voted last January to wipe out the deficit, in the manner already described. It is expected that a share dividend will be paid this year, and as soon as possible the institution will be put on a patronage-dividend basis, so that new shareholders may be brought in automatically, and the association kept renewed. ACTIVITIES The Farmers Union of Nebraska has furnished the impetus for the organization of numerous enterprises besides the Exchange, including the local co-operative stores, the elevator associations, live stock shipping associations, cream and produce stations, creameries, three live stock commissions, a terminal market grain selling agency, and a property insurance company. For all of these co-operatives, the Farmers Union is the educational organization—sort of a co-operative protective and propaganda agency. The official organ of the Farmers Union and all its co-operative activities in Nebraska is the Nebraska Union Farmer. HOW SUPPORTED The Farmers Union is supported by dues from individual members—except for the savings on the business of non-member patrons of the live stock commissions, which are turned into the Farmers Union treasury. If support of the educational work by individuals, instead of by the associations, appears to be a disjointed plan, remember again that the members of the Farmers Union and the shareholders and patrons of the associations are largely the same people. CO-OPERATION Vital Issues Barnacles on the Ship of State E sometimes have to smile at the antics of the politicians. This is because we think that political government is a very expensive and complicated burden for the people to have saddled upon them. We see that the natural tendency of any political body that constitutes itself into a government is to keep blowing itself up until it no longer can stand the strain and then it finally bursts. We have noted from time to time that office holders, when once an office or de partment or bureau is created, breed like maggots in the warmth of the festering of politics. Or, if we would speak in nicer terms, we would say that they are as fecund in breeding jobs as rabbits are in propagat ing their kind. We cite these things now and then to point a moral or adorn a tale, because we have a sort of idea that we know a more commonsense way to do business. But this time we will just tell the story. The new $50,000 "Commission to In quire into Agriculture" has found that there is overlapping and duplication of work among the existing government bureaus. So what does it recommend? (Dear reader, please take this seriously be cause you are a loyal taxpayer). The Com mission has to do something for its $50,000, so it recommends the establishment of a new bureau. It recommends a new "inter departmental agency to study this matter and to promote inter-departmental co ordination." (That string of words alone ought to be worth $50,000 to the farmers of this country. They could at least make it up into fence pannels). The fact is there are already in Wash ington two such bureaus in operation, ac cording to the Chicago Daily News. One is the "Bureau of Efficiency," the duty of which is to investigate "duplication of work." In the last fiscal year this bureau made ninety-one inquiries into such dupli cations. There is also the "Bureau of the Budget," which has as one of its duties "to co-ordinate the work of all the other bureaus." This "Bureau of the Budget" is a regu lar rabbit warren. It has a chief co ordinator, a deputy chief co-ordinatory, and half a dozen assistant chief coordinators. It has also a whole batch of "co-ordinating boards." Then throughout the country it has "area co-ordinators," all nice rabbits running around in the clover. This ought to tickle those farmers who want Uncle Sam to do things for them. Their "Commission to Inquire into Agri culture" is going to give them another bureau. And men must leave the plow and the forge to take these positions. The gov ernment calls for more men. Who would walk when he can get on a taxpayer's back and ride? J. P. W. The Menace of Birth Control THE propaganda to give everybody easy access to methods of preventing concep tion has made great headway. The matter has been studied, practical methods have been discove