The source of this uncorrected OCR text may be viewed in the DjVu format at: http://fax.libs.uga.edu/HD2951xC776/co33 or http://purl.galileo.usg.edu/ugafax/HD2951xC776/co33 COOPERATION ORGAN OF THE Consumers Cooperative Movement in the U. S. A. VOLUME XIX January—December 1933 Published by The Cooperative League of U. S. A. 167 West 12th Street, New York City INDEX INDEX PAGE Accounting .................................................................... 168 Advertising ........................................................ 2, 55, 70, 110, 182 Alanne, V. S. ................................................................ 38, 73 Amalgamated Cooperative Apartments ................................... 25, 51, 74, 123 Amalgamated Dwellings ................................................... 25, 83, 123 American Federation of Labor ................................................... 3 Arabs and Cooperation .......................................................... 69 Argentina, Cooperation in ....................................................... 207 Auditing ................................................................ 45, 104, 110 Austria, Cooperation in ......................................................... 170 Awakening Community, The ..................................................... 146 B Back to the Land .................. ........................ .. .. 22, 147 173 Bakeries ............................................................... 25, 104, 126 Banking ......................................................... 13, 18, 69, 94, 96, 151 Bargain Hunters ................................................................ 103 Barnes, Harry Elmer ........................................................... 83 Baron, N. .................................................................... 18, 67 Beer, Should Cooperators Sell ........................................... 131, 142, 162 Bergengren, R. F. .............................................................. 85 Bokal, M. E. .................................................... ....... .. 56 Book Reviews ................................................... 18, 39, 146, 163, 178 Brands, Cooperative ............................................................ 109 British Canadian Cooperative Society, Sydney Mines, N. S. .......................... 162 Bruere, Henry ............................................................... 83 Builder, The Cooperative ...................................................... 26, 46 Building and Loan Associations ................................................... 94 Bulgaria, Cooperation in ........................................................ 16 Burial Associations .............................................................. 72 Calendar ...................................................................... 117 Capitalism, Cooperation, Communism .............................................. 39 Capitalism and Wage Cutting ................................................... 33 Cash Basis ..................................................................... 12 Cash Trading .......................................................... 134, 156, 160 Central Cooperative Wholesale ................ 6,. 17, 26, 46, 70, 76, 95, 104, 154, 185, 207 Central States Cooperative League ............................ 37, 45, 51, 95, 97, 106, 176 Central States Cooperative Youth League ......................................... 177 Chain Stores ................................................................. 2, 109 Chicago Pure Milk Association ................................................... ] 2 China, Cooperation in ........................................................... 79' Churches and Cooperation ................................................ 12, 30, 102 Citizens Cooperative Store, Buffalo, N. Y. ........................................ 4 Claessens, A. .................................................................. 163 Cloquet Cooperative Society, Minn. ................................. 139, 141, 160, 185 Clusa Service ................................. 17, 37, 77, 92, 115, 129, 140, 146, 163, 170 Codes ............................................ 134, 151, 152, 168, 183, 186, 203, 205 Cohen, E. M. ...................................................... ............ 39 Cohen, H. I. ...................... ....... .... . ...... ................... 58 Cole, G. D. H. ................................................................. 98 Columbia Conserve Co., Indianapolis .............................................. 5 Commonwealth College, Mena, Ark. ............................................ 32, 190 Commonwealth Mutual Savings Bank .............................................. 96 i PAGE Competition ......................................................... 11, 59, 102, 109 Consumer, The Prostrate ......................................................... 82 Consumers, Awake ............................................................. 165 Consumers Cooperation in U. S. ................................... 24, 45, 87, 105, 123 Consumers Cooperative Services, N. Y. City ........................... 27, 123, 139, 189 Consumers Cooperative Services and Restaurant Code ............................... 207 Consumers Guide, The .........................................•••••••••••••••••• 202 Consumers Research ......................................................... 33, 189 Continental Congress ............................................... 102, 111, 141, 160 Cooley, O. ............................................. 4, 19, 22, 24, 43, 81, 112, 190 Cooperation Here and Abroad ................................................... 178 Cooperative Bakery of Brownsville 6 E. N. Y. .................................... 126 Cooperative League, The ............................................. ........ 44. 148 Cooperative Month .......................................................... 35, 167 Cooperative Trading Association, Brooklyn, N. Y. .................................. 126 Cooperative Trading Co., Waukegan, 111. .................. 8, 12, 51, 78, 96, 106, 114. 156 Cooperation vs Coercion ......................................................... 150 Cooperators Life Association ..................................................... 122 Cordiner, Mrs. Alex. ........................................................... 162 Cort, E. G. .................................................................... 38 Cowden, H. A. ............................................................... 6, 175 Creameries ................................................... 11, 12, 17, 41, 87, 140 Credit Trading ........................................................... 16, 34, 58 Credit, The Parentage of ......................................................... 182 Credit Received His Fair Name, How .............................................. 208 Credit Union National Extension Bureau .......................................... 86 Credit Unions ........................................................ 42, 68, 86. 189 Czechoslovakia, Cooperation in ................................................ 16, 178 D Deal, F. E. .................................................................... 18 Democracy Doomed?, Is ......................................................... 146 Democracy in Crisis ............................................................ 146 Deposit Accounts—R. H. Macy ..................... ............ ............... 135 Dietrich, J. H. .................................................................. 32 Eastern Cooperative Agency .................................................... 13 Eastern States Cooperative League .............................. 45, 51, 94, 123, 127, 128 Eastern States Farmers Exchange, Springfield, Mass. ................ 27, 31, 122, 155, 185 Edberg, Gideon ................................................................. 206 Editorials—Oscar Cooley ............... 2, 22, 42, 62, 82, 102, 118, 134, 150, 166, 182, 198 Education ................................................. 52, 102, 108, 182, 201, 205 Electric Power Societies .......................................................... 207 Electricians, Farmers are their own ............'.................................... 160 Emblem, Our Cooperative ...................................................... 206 Emergency Conference of Consumers- Organizations ................................. 184 Employee Cooperation ..................... ...................................... 33 Employees Cooperative Union ............. ...................................... 159 Equity Union Grain Co., Kansas City, Mo. ....................................... 175 Europe, Cooperation in, by C. E. Warne .......................................... 170 Executive Order, President Roosevelt's ............................................. 198 Fairchild, H. P. ................................................................ 19 Farband Housing Corporation, N. Y. City ......................................... 94 Farm Board, Federal ............................................................ 27 Farm Bureau Services, Lansing Mich. .............................................. 156 Farm Credit Administration .................................................. 151, 199 Farm Publications .............................................................. 146 Farmers and the Farm Bureaus ................................................... 3 Farmers as Radicals ............................................................. 62 INDEX PAGE Farmers Cooperation ......................................................... 26, 112 Farmers Marketing Cooperatives and Trade Unions ........................'. n9, 157, 193 Farmers Organizations," "Those Damned ........................ . ... . 13 Farmers Union Central Exchange, St. Paul .................... 37, 50, 72, 95, 105, 155, 185 Farmers Union Cooperative Oil Association, Bancroft, Neb. ........................ 10 Farmers Union Cooperative Oil Plant, N. D. ..................................... 7 Farmers Union, Neb. ...................................................... 11, 49, 50 Federal Farm Relief Administration ............................................'... 201 Finland, Cooperation in ....................................................... 35, 170 Finnish Cooperatives ............................................................ 24 Fire Insurance Companies of Woodridge, N. Y., Associated .......................... 139 Fire Insurance Society, Workmen's Furniture, N. Y. City ......... ............... 24, 93 Fitchburg Cooperative Club ............................... 36, 57, 76, 113, 177, 194, 210 Floodwood Cooperative Association, Minn. . 13 Folk High School ..............................................'..'....'.'.'..'.'...'.. 14 Food and Drugs Act ............................................................ 189 Forgotten Consumer, and Who has forgotten him, The ............................... 120 Forgotten Consumer Organize and Act, Let the ..................................... 188 Franklin Cooperative Creamery Association .................................. 9, 87, 202 France, Cooperation in ...................................................... 17. 170 Garibaldi, Giuseppe C. Assoc.—Mishawaka, Ind. .................................. 207 Germany, Cooperation in ............................................. 26, 35, 118, 174 Gilbert, Joseph .................. ' ' 143 Good, W. C ........................'...'..'....'...'..'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'. .146 Goss, A. S. .................................................................... 175 Government Finances Cooperative Education ....................................... 201 Grange ........................................................................ 24 Grange League Federation Exchange, Ithaca, N. Y. .......................... 2, 156, 160 Great Britain, Cooperation in ..................... 16, 35, 42, 106, 109, 115, 122, 137, 187 H Hagge, Fred ................................................................... 13 Halonen. Geo. ............................................................ 29, 99, 136 Hayes, A. J. ................................................................'... 58 Health, The Public might take care of its .......................................... 63 Hedebol, F. C. N. .......................................... .. .......... . 14 Herron. L. S. ................................................... 11, 27, 119, 142, 200 Hill, Virginia ................................................................... 98 H. O. B. Cooperative Oil Association, Bruce Crossing, Mich ............ ...... . . 159 Hood, Robin ................................................................... 136 Hospitals ............................. ... ... ..... .. 17 47 Housing ............................................................ 64, 83, 94. 123 How to Spread Cooperation .................................................... 52, 70 Howe, F. C. ......................................................... .. . 202 Hubbardston Cooperative Club .......................... 36. 56, 113, 145! 177, 194, 209 Hughes, H. J. .................................................................. 178 Hull, I. H. ................................................................ 9, 84, 157 Hyde, W. A. .................................... .............................. 17 I Jdrott Cafe, Chicago, 111. ......................................................... 25 Ikle, Adolph .................................................................... 98 Illinois Farm Supply Co., Chicago ................................................ 156 Indiana Farm Bureau Cooperative Association................... 3, 9, 70, 84, 128, 155, 203 Insurance ..................... 17, 25, 38, 45, 77, 92, 95, 115, 122, 129, 139, 146, 163, 179 International Cooperative Alliance ............................................. 16, 140 Industrial Arts Cooperative Service, N. Y. City .................................... 139 International Wholesaling ........................................................ 51 INDEX PAGE Jacobson, Geo. W. ...................................................... 38, 193, 201 Jessup, J. A. .................................................................... 144 Jewish Cooperatives ........................................................... 25, 67 Jokes, Cooperative .............................................-•••••••••••••••• 66 Junior Cooperators of Chicago ................................ 56, 76, 130, 145, 161, 211 K Kastel, A. .................................................................. 130, 145 Keen, George ................................................................... 131 Kirby, George .................................................................. 4 Knights of Labor ............................................................... 24 Kress, A. J. .................................................................... 39 Land, Back to the ...................................................... 22, 147, Land O'Lakes Creameries ........................................................ Laski, Harold J. ................................................................ Laws, Cooperative ...................................................... 37, 162, Lawler Cooperative Creamery Association ........................................ Liberty Cooperative Co., Cleveland, Ohio ...............................•••••••••• Library, Cooperative Chain ...................................................... Libraries, Cooperative ..........................................••••••••••.••••••• Liebman, H. ................................................................ 62, Liikanen, A.M. ........................................................... 36, 75 Lilly, Esther ................................................................... Liukiku, J. ............. ........................................................ London Cooperative Society .............................................. 42, 84, Long, Cedric ................................................................... Luma, A Challenge to the Trusts .....................................••••••••••• 173 26 146 184 17 5 109 12 143 97 53 142 122 24 28 M McCarthy, C. ............................................................ 31, 49, 141 McGuire, A. J. .................................................................. 211 Madera Consumers Cooperative Association, Cal. .................................. 159 Manitoba Cooperative Wholesale, Winnipeg ................................... 156, 162 Manty, Chas. .................................................................. 51 Marketing Associations and Trade Unions ......................... 11. .9, 135, 157, 193 Martinek, Jos. .................................................................. 4 Mass. League of Cooperative Clubs ....................................... 76, 177, 209 Maynard Cooperative Club ....................................................... 194 Meat Market Statistics .......................................................... 50 Men's Guild, Waukegan, 111. ........................................... 58. 78, 96, 209 Mexican Cooperative Law ...................................................... 162 Midland Cooperative Oil Association ............... 6, 17, 26, 46, 37, 70, 92, 108, 155, 159 Minneapolis Cooperative Oil Association ........................................... 110 Mims, Mary and Moritz, Georgia ................................................. 146 Minnesota Valley Burial Association ............................................. 73 Minot Cooperative Co., N. D. ................................................... 72 Moldenhawer, J. V. ............................................................. 12 Money's Worth, Coops, insure the Consumer gets his ................................ 154 Moore, J. L. ................................................................. 18, 59 Morgenthau, Henry, Jr. ........................................................ 151 Mott Equity Exchange, N. D. ................................................... 175 Movies ............................................................... 9, 16, 51, 172 Mutual Trade Relations .......................................................... 159 INDEX INDEX N PAGE National Cooperatives, Inc. ....................................... 1, 6, 10, 33, 70, 205 Nebraska Farmers Union State Exchange ............. 13, 26, 31, 49, 104, 105, 118, 154, 159 Nelson, E. E. .............................................. ................... 4 New Cooperative Co., Dillonvale, Ohio ........................................ 27, 207 New Era Life Association ............. ......................................... 13 New Year's Resolutions .......................................................... 209 Noble Co. Farm Bureau Cooperative Association .................................. 197 Northern States Cooperative League .......... 8, 37, 45, 72, 95, 105, 109, 110, 139, 178, 184 Northern States Cooperative Youth League ........................................ 194 N.R.A. .......................... 133, 150, 152, 166, 168, 182, 184, 186, 188, 198, 202, 205 Nurmi, H. V. .................................................................. 188 o Ohio Farm Bureau, Columbus, Ohio .......................................... 160, 189 Oil Cooperatives ............................... 7, 10, 17, 27, 84, 110, 121, 155, 159. 166 One Hundred Million Guinea Pigs ................................................. 99 Omaha F. U. Credit Association ................;.................:............... 211 Opportunity, Cooperation's ............................................... 23, 30, 42 Orr Farmers Cooperative Trading Co., Minn. ..................................... 33 Ozanne, J. ..................................................................... 142 PAGE Saari, Leo ..................................................................... 79 Sammeli, J. .................................................................... 98 Sankari, H. O. .................................................................. 74 Schools, Cooperative.. 14, 32, 37. 72, 75, 76, 94, 97, 110, 112, 128, 139, 143, 144, 160, 161, 185 Schuyler, G. S. ................................................................. 132 Sciences, Physical and Social ................................................... 43 Scotland, Cooperation in ........................................................ 17 Seidel, Edmund ................................................................ 74 Shadid, M. .................................................................... 47 Slogans ................................................................... 176, 183 Slovenian Cooperative Youth League, Cleveland, Ohio .............................. 113 Socialists and Cooperators ...................................................... 94 Socialists Seeking Cooperation .................................................. 8 Soo Cooperative Merc. Association, Sault Ste. Marie, Mich. ......................... 87 Soviet Russia as I Saw It ....................................................... 18 Speakers, A Manual for Socialist ................................................. 163 Spirit of Cooperation, The .................................................... 54, 74 Square Deal Cooperative Store, Milwaukee, Wis. ................................. 175 Statistics ....................................................... 25, 88, 122, 124, 138 Stein, Emanuel .............................................................. 64, 147 Sunnyside Consumers Cooperative, L. I. City, NY. ........................... 142, 207 Sweden, Cooperation in. ............................................... 16, 28, 51, 162 Palmer, Edwin C. ........................................................... . . 95 Palmer, Carlos C. ............................................................... 197 Palestine, Cooperation in ....................................................... 67 Peoples Cooperative Society, Superior, Wis. .................................... 73, 185 Peoples Year Book .............................................................. 39 Pesek, Frank .......................................................... 37, 56, 79, 97 Pointers on Propaganda Meetings ................................................. 192 Producers Cooperation .................. ............................ 26, 87, 106, 122 Profit Seeking Producers vs Cooperation .......................................... 62 Program. Cooperative ........................................................... 21 Profit-Piling .................................................................... 11 Profits or Prosperity ............................................................ 19 Propaganda .............................................................. 52, 70, 19? Public Utilities .................................................................. 3 Publishing Co., Cooperative .................................................. 185, 187 Purity Cooperative Bakery, Paterson, N. J. ....................................... 126 Q Quincy Cooperative Youth Club ................................................. 76 Quotations ................................................ 23, 81, 83, 86, 102, 175, 205 R Racketeering ................................................................... 12 Radio Broadcasting, Cooperative .................................................. 32 Rats, Anti, Campaign .......................................................... 32 Recreation ..................................................................... 17 Rent Relief Fund ............................................................... 94 Reynolds, Q. ................................................................... 157 Rimpila, L. .................................................................. 78, 144 Robinson, Wm. G. ............................................................. 18 Roosevelt and the New Deal .................................................... 85 Rosenthal, E. A. .................................................................. 132 Taxation ............................................................... 104, 110, 168 Technique of Fraternity .......................................................... 43 Technocracy and Cooperation .................................................. 29, 99 Telephone Companies ........................................................... 3 Theatre, Cooperative ............................................................ 17 Throop, C. .................................................................... 43 Trade Unionism ................................................................ 43 Tolstoy, Leo ................................................................... 13 Trade Union and Cooperative Council, Minneapolis ................................ 8 Trade Unions and Marketing Coops. ................................. 119, 135, 157, 193 Twin City Cooperative Council ................................................... 109 Twin Cities Milk Producers Association ........................................... 87 U Unemployed Cooperative Leagues ................................... 8, 12, 58, 107, 175 Union Merc. Co., Isanti, Minn. .................................................. 38 Union Oil Co., North Kansas City, Mo. ...................................... 70, 155 United Cooperative Farmers, Fitchburg, Mass. ..................................... 126 United Cooperative Society, Maynard, Mass. .............................. 51, 126, 160 United Cooperative Society, Fitchburq, Mass. .................................. 126, 185 United Cooperative Society, Quincy, Mass. ......................................... 128 United Farmers Exchange, Fulda, Minn. ....:..................................... 73 U. S. S. R., Cooperation in ................................................ 16, 18, 170 V Virginia Farmers Purchasing Association ......................................... 141 w Wagg, Olavi .................................................................. 36 Wages under N.R.A. ........................................................... 150 \Vages Cut at the Points of Production and Consumption ........................... 204 Wages vs Capitalism ........................................................... 33 Warbasse, J. P. .................. 18, 24, 45, 63, 85, 120, 131, 133, 152, 168, 186, 200, 202 A INDEX PAGE Ward G. H. ................................................................... HI Warinner, A. W. ........................................................ 95, 128, 157 Warne, C. E. ........................................................... 33, 157, 170 Washington Cooperative Egg and Poultry Producers Association .............. 26, 110, 154 Washington, Cooperation Impresses ............................................... 202 Washington State Grange .................................................... 153, 175 Waste, Criminal ................................................................ 10 Waste, Cutting out .............................................................. 31 Waukegan and No. Chicago Cooperative Association ................................ 51 Wentworth Farmers Cooperative Association ....................................... 108 Wholesaling ........................................................ 1, 28, 49, 50, 70 Winchester, H. J. ............................................................... 142 Wise Sayings ...................................................... 81, 92, 103, 163 Womens Guilds ................... 16, 46, 54, 56, 78, 95, 98, 114, 129, 130, 162, 176, 194 Workers Cooperative Union, Lawrence, Mass. ............................ 41, 51, 94, 126 Workingmen's Protective Union .................................................. 24 Workmen's Circle .............................................................. 25 Workmen's Cooperative Merc. Association, Chicago, 111. ............................ 37, 97 Workmen's Furniture Fire Ins. Society, N. Y. City ................................ 24, 93 Workingmen's Cooperative Co., Cleveland, Ohio .................................... 4 World Chaos, A Guide Through .................................................. 98 World Economic Conference .................................................... 140 Y Young Circle League ............................................................ 76 Young Cooperators Club, Maynard, Mass. ......................................... 57 Youth League of Superior, Wis. ................................................... 76 Young Negroes Cooperative League .............................................. 5 Youth Leagues .................. 4, 36, 56, 75, 95, 97, 113, 129, 130, 145, 161, 177, 194, 209 "f COOPERATION ORGAN OF THE Consumers Cooperative Movement in the U. S. A. \ VOLUME XIX January—December 1933 Published by The Cooperative League of U. S. A. 167 West 12th Street, New York City 20 COOPERATION STUDY CONSUMERS' COOPERATION The books and pamphlets listed below are available through The Cooperative League. Read them and pass them on to your friends HISTORICAL Per Copy Per 100 38. Consumers Cooperation In the United States (illus.), 1930.... .10 8.00 6». Story of Toad Lane (By Stuart Chase) ...................... .05 4.00 TECHNICAL 4. How to Start and Hun a Rochdale Cooperative Society .......... .25 »>. Muiiel By-Laws fo. Price $1.00 a year. Vol. XIX, No. 1 Jan. 1933 In Cahoots with the National Advertiser? WE WENT into a grocery store and asked for some Florida oranges. "These are all Floridas," said the clerk, pointing to a bank ot fruit. Every orange was wrapped in the familiar trademark of the Califor nia Fruit Growers Exchange. Such is the wisdom of the average grocery clerk. Since the advent of the Era of Na tional Advertising, retailing has be come largely a matter of handing out branded goods, on call, over the coun ter. Your modern retailer is little more than an automaton, a human slot-machine, a puppet with the na tional advertiser as puppet-master. It is complained that there is little profit in retailing any more, but why should there be? One-half of one percent would be big pay for the slot-machine service you get in the average store. How much better are our coopera tive stores? In all too many cases we fear they are merely duplicating the slot-machine tactics of the private re tailer. If called to answer to this charge, cooperative store managers will say that the public calls for national brands and they have to give the pub lic what it wants. Neither statement is wholly true. There are many con sumers—and may we be optimistic enough to think that there are espe cially many among cooperative store patrons?—who have not sold their souls to nationally advertised brands and who are willing—nay, desirous— of being informed by their retailer as to qualities and standards. The re tailer is always in a better position tc influence the customer than is the na tional advertiser, for the retailer cart maice a direct statement at the moment she is making her selection, while the national advertiser can only throw a suggestion at her as she whizzes by his billboard in her automobile, or pages through a magazine, her mind intent upon the story she is reading. Some retailers have taken full advantage of this fact. Many of the chains, for ex- ample, have built up a big volume for their private brands, not by advertis ing, but by judicious "pushing" over the counter. They have done this di rectly against the force of millions of dollars of national advertising. If the chains have done this wit 5 their brands, which have no appeal whatever except price, and quality (maybe), how much more can not the cooperatives do? Besides having every appeal that the chains have, they can point out that the co-op brand is made according to the specifications of the cooperative, that is. of the consumer, and so there has been no incentive to stint on quality. Cooperative brands are good brands. If not, somebody has failed to cooperate, and the result has no business to be called a coopera tive brand. A man with long experience in the retailing field recently expressed to us the opinion that a store could be opened and run successfully without a single branded article on the shelves. He says that much of the public's buy ing of advertised brands is because there is nothing else to buy, or they do not know how to buy according to description and standard. If they were offered an open formula article, un loaded with advertising cost, on the basis of its merits, thev would buy it eagerly, he believes. But this would be a different kind of retailing than obtains at present. The retailer and his clerks would have to know their goods. They would have to be able COOPERATION to tell precisely the difference between Fancy and Extra Fancy and stand back of their words. Such a retailer would gain a tremendous hold on his public. Private retailers will never do this, but cooperative retailers might. Tn fact it seems to us exactly "up their alley." It is a way in which coopera • tives can set themselves apart and out side of competition. Cooperatives are founded on the philosophy of service to the consumer, whereas private re tailers are founded on a ohilosophy cr: profit to themselves. Every coopera tive should be the champion of the consumer. He needs a champion, heaven knows. The private retailer and the national advertiser are both "agin him;" together they are straining every nerve to sell him a big red label and a large measure of hokum. Go into your cooperative store or oil station and take a look around. To what extent is your society serving the consumer and to what extent is it oper ating in cahoots with the national ad vertiser? • Don't Blame the Bureau-crats Too Harshly The reaction of the American Farm Bureau leaders to the proposal of the Chicago conference that they aid and abet a general consumers cooperative is not to be wondered at. They feel that they have one specific job to do: Help the farmer. This, in their view, does not require—or perhaps even per mit—them to go out of their way to help everybody else. Like many a farmer of the past, the A. F. B. F. ap parently feels snug and self-sufficient behind its own line fences and com paratively unconcerned with whafc happens to its neighbors. Provincial, you say? Yes. but when has the A. F. of L., for example, gone out of its way to cooperate with farmers? In fact., what if any organization of a produc ing class has ever shown a disposition to help or to cooperate in helping others than that class; even when, as in this case, cooperation with others 'n. the long run could only benefit them selves? No, organizations of producer classes are traditionally narrow and provincial. They are primarily inter ested in profit for their class, and devil take the rest of the world! This is the root cause of most social conflict. When we organize on consumption lines, however, we have a common ground on which all kinds of produc ers, farmer and laborer, can meet; nay, on which it is positively in their inter est to meet. Thus consumers coopera tion breaks down class lines and tends to wipe out class conflict. This truth is seen by the farmers' cooperative wholesales which at the Nov. 21 conference took a firm stand for a central wholesale capable of serving both farmer and worker con sumers. This is statesmanship of a high order, and great credit is due such, organization as the Indiana Farm Bu reau Cooperative Association, (which, be it noted, has considerably extended its horizon beyond that of its parent organization). There are Farm Bureau cooperators and there are Farm Bu- reau-crats. The former can still milk a cow or two upon necessity; the lat ter are more expert at milking Con gress. Practicing cooperation, coming smack up against the needs of the people and helping them to satisfy their needs through cooperation— nothing beats that as a prescription for toning up and broadening out a phil osophy. Save Money and Breath Many farmers in Indiana—"Other states, too, probably—'are having their telephones taken out. Why shouldn't they? The rate of the Indiana Bell Telephone Company is $24 a year. You can forego a lot of talk for $24 these days. Meanwhile a small coop erative telephone company which has been running in that state for many years we are told has never charged over $6 per year and has averaged nearer $5. Three cheers for the great- ness and efficiency of a nation-wide, monopolistic public utility! COOPERATION WANT to take a trip from New York to Minneapolis and back, stopping here and there on the way to say hello to various cooperators who are laboring mightily in their local vineyards? Chances are they will be glad to see us—'it's lonely business tending a green shoot in a desert—and maybe they will let us pay for our din ner, at least partially, with a talk on cooperation—barter's the style now,, you know. Want to go? All aboard, then. One main objective we have: A con ference of district cooperative whole sales to meet in Chicago Nov. 21 to consider plans for combining their buying power. That sounds worth sit ting in on. Mail Order We leave New York Nov. 16. Buf falo is our first stop and a snowy one it is. We call up George Kirby, whose hobby is how to get a cooperative mail order service started. He was with Larkin & Co. many years and so is no tyro at that sort of thing. He would like to see such a service set up and controlled by the League, or perhaps preferably by one of the wholesales, giving people a chance to buy cooper atively who are not in cooperative ter ritory now, insuring honest goods and making savings, too. We would not have to stock goods at first, he says. Arrangements could be made with manufacturers to fill orders direct. Textiles, household articles and toilet goods could be handled, maybe tires, And an ounce of cooperative propa ganda with every pound of goods. This might be the means of planting the seed On the Road By Oscar Cooley of cooperation in many communities that are now barren. Mr. Kirby thinks we may be missing a chance here. There are still left a few men of the old school who were more interested in doing a good job, producing and sell ing good goods at a fair price, than in getting rich quick at any cost to the consumer. Mr. Kirby appears to be one of those men. Dr. Nelson After our visit, he drives us through the slush to the Citizens Cooperative Society store. A gallant band of negro cooperators started this store over a year ago. It has had hard sledding, but is still running. The indomitable spirit of one man, Dr. E. E. Nelson, has kept it running. There he is in a grocer's white apron, waiting on customers. He is a physician; why isn't he doctoring? Because this other thing was more im portant. He has sacrificed his practice, abandoned his office and moved his furniture into the rear room of the store. One girl helps him. Their wages between them are $10 a week. It has to be, to keep the landlord and the bill collector away from the door. "But,\ Dr. Nelson, you will ruin yourself!" "It does not matter, not if I can get my people to see this great thing, Cooper ation, and what it can do for them." The store is cold. One shivers to think that he is allied to a cause that can do this tragic thing to a man. And yet is it tragic? In the midst of a poverty- stricken, starving and hopeless nation, here is a man who is rich indeed. You know, he may win. In the last six months' operation, he has paid off one- COOPERATION half of a $400 wholesaler's bill. It's hard to beat down a man like that. We have to go on. Cleveland is our next stop. United Front There Joe Martinek, about to take a train to Chicago to attend a meeting of Bohemian fraternal societies, pauses to pour into our ears his ardent belief that the movement should get closer to these organizations, which are really cooper ative insurance societies. He sees diem as a part of the complete and united labor front, and for the latter his enthusiasm is intense. As an ex ample he points to the strength of the Bohemian radical group in Cleveland with its well-rounded pro gram consisting of 1. Cooperative so ciety (incidentally, our strongest store society located in a large city); 2. Building and loan association; 3. Fra ternal society; 4. Athletic club; 5. Polit ical party (Socialist). Here we have institutions for satisfying the needs of the community in goods distribution, banking, insurance, information and propaganda, sports, the ballot. Add to these, housing, transportation and health service, 'and we begin to see a new world evolving. Let us sink our differences, says Martinek, all we who yearn for this new world, and merge our forces into a solid phalanx. A phone call informs us that, by, chance, the Slovenian Youth League is meeting this evening. We find them in their snug clubroom over the garage, and guess what they are doing? Read ing Dr. Warbasse's "Cooperative De mocracy" aloud. They are on the chap ter having to do with producers' co ops. This is solid stuff. Who said our young people are interested only in parties and frivolity? Like all our youth clubs, this one is searching for the pro gram which will attract youth and at the same time make cooperators of the future out of them. This is the vital part of our movement; in truth the only part that matters. The next day we enjoy the hospi tality of Roy Shanks, known to many as a former active worker in coopera tion, and after dinner he drives us to the home of Joseph Myers, who takes us across the street to a combined meeting of the Liberty Cooperative Co. and the Young Negroes Coopera tive League, two negro organizations which are developing a buying club. The women, who have a Guild, are present too. This is one of several negro groups throughout the country who with little capital but much ear nestness are delving into the possibili ties of cooperation for their race. They wonder if the time has come to open a store. Easy now. Better go slow and succeed, than hasten and fail. After a good discussion, we hurry away in the rain to catch our train to Indianapolis. Mr. Hapgood Everyone has heard of the Colum bia Conserve Company, the purest ex ample I know of an industrial pro ducers' cooperative, a gallant attempt to achieve complete worker ownership and control. William Hapgood invites us to lunch. He tells us of their diffi culties, caused by shrinking markets. People are boiling up the soup bone these days, it appears, rather than buying canned soup. It's the marketing problem that is the weakness of these producers' co-ops. Columbia is now seeking a way out by developing its own brand. But he tells us of more, of the "each for all and all for each" spirit of these Columbia workers, of their unanimous willingness to sacrifice for the sake of the whole. What we have, that will we share, they agree. Mr. Hapgood believes that the develop ment of social-mindedness among workers through this experience in democratic control is of supreme value. He would like to see a closer working relationship between producers' and consumers' cooperatives. We talk of how this may be brought about. Thence to Chicago with E. G. Cort, who has been paying the Indiana Farm Bureau a visit, and we talk about many things on the way but especially of the purchasing pool, which appears to be about to take the shape of a national 6 COOPERATION cooperative wholesale and which is to be discussed the next day. All day Sunday the men dribble into the Hotel Sherman; from Kansas, Nebraska, In diana, Illinois, the Farmers Union of St. Paul, the Central Wholesale, the Midland. Most of them represent co operative oil wholesales. This is the first time that all these have got to gether; but they have common ground, they are working in the same field. They gather in knots in the lobby and talk. They gang in one another's rooms. Something is in the air. There is a sense of expectancy; something new is about to be created. The Chicago Conference Next morning the conference opens. Howard Cowden of Kansas City is elected chairman; the writer secretary. A set of articles and by-laws has been drawn up by the attorney for the Illi nois Farm Supply Company. We vote to read and discuss these. The reading begins—and pretty soon the fireworks, for it is clear that the majority want something different. The proposed set-up is for an association to pool the purchasing of farm supplies, petro leum products chiefly. It would be in corporated under the Illinois Agricul tural Act. Well, isn't that all right? We're all farm organizations, aren't we? Except the Central Wholesale, and 90% of its supporters are farmers. No, it isn't all right. If we are going to set up a consumers' wholesale or ganization, let us not restrict it to any one class of consumers. Let us make it broad enough to serve all consum ers, as time goes on, with all their needs. Even now more than one of the farm groups represented here are edging into town, seeking to organize urban consumers. These urbanites burn gasoline and use tires and bat teries, do they not? As the line of goods handled is broadened, that common ground will widen. Here's the Central Wholesale of Superior; do we want to shut them out? We're all consumers under the skin; why try to draw a line between town and country? Besides, there is volume. Increased volume helps all of us. The consumers* move ment in the towns has been slow to grow. It will be helped by strong cooperative wholesales. We have the beginnings of such wholesales, built by farm consumers. If these wholesales broaden their scope to reach the town consumer, they may be the means of giving the general consumers* move ment a great boost, which again will help all of us. Thus runs the argu ment. Among those who speak strong ly for this principle are Mr. Cowden, I. H. Hull of Indiana, Ivan Lanto of the Central Wholesale, A. W. Warin- ner, C. C. Talbott of North Dakota, the Midland and St. Paul delegations. On the vote, no one dissents. Naming the Baby Then comes the name. "American Service Association" is the one pro posed. Some one suggests that the word "cooperative" should be in there somewhere. Tom Dewitt of Kansas says that whatever other words we use in the name, he wants to see the word "cooperative" in there. So do we, others chime in. But Mr. Mar- chant of Illinois says the word "coop erative" won't get by with his folks; it is looked upon as a "class" word. How would tank cars marked COOPERA TIVE look in his state? Not good at all. Mr. Herndon, Illinois president, appears to agree with him, but ex presses a cooperative attitude by sav ing "I am here to cooperate with this group." On a vote, "Cooperative" wins. It begins to look as if Illinois were getting it in the neck. Ao- parently they have come here with a different idea of this thing than the rest of us. Many of the de tails of their plan seem good and worthy of acceptance, but basically it is in for revamping. Many names are suggested, such as National Coopera tive Wholesale, American Cooperative Wholesale Society, and National Con sumers Cooperative, Inc. The last is proposed by Mr. Hartsock, attorney for the Indiana Farm Bureau Coopera tive Association, "in order that no one COOPERATION may make the mistake of assuming that this is not a consumers' coopera tive." We don't want the income tax authorities to make any wrong assump tions about this, he says. As to the word "Society," the opinion is gener ally expressed that, though widely used abroad, in this country it connotes a social organization, perhaps a Ladies Aid Society. That would never do. And so the various names are written on the blackboard and we ballot on them, each organization having one vote. The choice seems to lie between National Cooperative Wholesale and National Consumers Cooperative. On the final ballot, the latter wins, 5 to 2. What's in a name? A great deal some times. People think by catchwords and phrases. A good name is a fair beginning for any infant. The discussion flows on, forming ar. eddy here and there but not seriously, the direction of the current having been determined upon. How shall control be vested? In the member wholesales according to the volume of their purchase, each having one vote per $5000 of volume. This is taken over from the original articles. A voice is to be given also to the national organizations that are engaged in co-operative educational work such as the Cooperative League, National Farmers Union, American Farm Bureau, National Grange, and Farmers Equity Union. Each is to have one vote and one representative on the Board of Directors. This too, which seems to many an excellent pro vision for tying up the business and educational interest and unifying their . - ^ •'.;!' I FARMERS UNION COOPERATIVE OIL PLANT, NO. DAKOTA This picture is typical of the hundreds of cooperative bulk plants which have sprung up throughout the West in the last few years. These plants are built, owned and operated by the farmers of a county or more, organized in their cooperative oil association, which is in general founded on Rochdale principles. Cooperative oil distribution is almost invariably successful, in the face of some of the largest and most ruthless of profit concerns, the oil combines. 8 C O O P E R A TIO N aims, was provided in the Illinois set up. Another major principle is that of the contract agreement. Although rec ognizing the value of the principle of voluntarism, the majority feel that mem bers must come in with 100 per cent of their purchasing in the lines the nation al can furnish if there is to be enough assured volume to give the national a basis for bargaining. In other word*, every member wholesale must come in meaning business, not simply with an eye to shop around. But allowance is made for necessary spot buying. Hov/ about this? Is this true cooperation? Is it not an attempt to force coopera tion? Can the voluntary principle al ways be maintained, or are legal sanc tions sometimes necessary in the coop erative movement? This has been amply debated abroad; it is a live topic for our readers to debate. It is night. Many grave policies have been discussed and some really heavy thinking done, although no one feels that this is the last word. Are you ready now to draw up the articles? is the question put to the attorneys. Mr. Kirkpatrick withdraws. Mr. Hartsock says he is willing to try and so the night's work begins, the secre tary translating his minutes and At torney Hartsock dictating the articles of the National Consumers' Coopera tive Incorporated. The next day the articles and by laws are submitted, amended in part and then voted on and accepted. It is agreed that acceptance means that each will report back to his organiza tion and recommend adoption and af filiation. The youngster is born. Whether he will prove a genius or a monstrosity time now will tell. (Later events have indicated that some thought him a monstrosity, and that surgery was called for. This was to be expected. A strong species arises by evolution, not by overnight crea tion.) There have been previous attempts to form national wholesales in this country, never successful. What right have we to be optimistic about this one? Simply that here is represented a large body of organized consumer de mand. Economic law, which caoital- ists have always flouted, to their sor row, but to which cooperators are; obedient, states that it is dangerous to create supply until demand is known. If the National Consumer's Coopera tive succeeds it will be largely because this law has been obeyed. But also it will be because the leaders in this en terprise possess cooperative under standing. If not, we are treading on very dangerous ground. We must be on our way. With Ivan Lanto, sales manager of the Cen tral Cooperative Wholesale, we go to Waukegan. The Board of Directors of Cooperative Trading Company is in session. Is it our imagination, or do we see the light of hope rise in their eyes as we describe the doings of the last few days? May they not be dis appointed. Socialists Seeking Cooperation Thanksgiving with the Liukku's, a tremendous turkey baked in the coop erative bake oven, adorning the board. We visit Ed Carlson and his wife and go to inspect the cellar of potatoes and sauerkraut-making by which the un employed, assisted by the cooperative, are helping themselves. Then on in the morning to Milwaukee where the Mayor's secretary, Mr. Hauser, has called a conference of trade-unionists and others interested in cooperation to discuss ways and means of developing a cooperative movement in Socialist Milwaukee, (isot in every city is tuc cooperative emissary entertained in the Mayor's office and his mission written up in the local papers.) Lead ers who understand cooperation and have time to concentrate on it seem to be the great need here. In Minneapolis we meet the new as sistant secretary of the Northern States League, Joseph Gilbert. More field work is the demand in this district and Mr. Gilbert, a veteran in labor and farmer organization work, has been hired to team up with Mr. Alanne and provide it. Already a Trade Union and Cooperative Council has been or- COOPERATION ganized and will hold classes in coop eration under Mr. Gilbert through the winter. Another similar group has been formed among the employees of the Franklin. Thus the seed of coopera tive knowledge is being sown in the Twin Cities. We have lunch with Mr. Eide, nourishing ourselves with good Franklin milk, sit in a Board of Direc tors meeting and again see hope kindle when we mention the national whole sale. We visit the Farmers Union Central Exchange in St. Paul, go and make the acquaintance of Mr. Mc- Guire of the Land O' Lakes, and listen to E. G. Cort tell of the progress of the movement to start a cooperative oil association in the university section of the city. This will be watched with in terest, as the notably successful coop erative oil movement has thus far been confined to farmers. At the meeting of the Northern States Leaque Board the matter of affiliation of the Farmers Union Central Exchange is discussed and it is voted to defer action until the national wholesale has had a chance to try its spurs at resolving competitive difficulties between its member asso ciations. Thus confidence is expressed in the infant. Will he measure up? Thence back to Chicago where we are entertained by hearty John Konec- ny, have lunch with Clarence Senior, drink coffee at the Cafe Idrott and spend an evening with the eager and intelligent Junior Conoerators' Club. Indiana's Program We have promised ourselves a few days' stop in Indiana on our return trip. The movement in this state is ac outgrowth of the Farm Bureau. The farmers in Indiana talk about "our pro gram" and in truth they have a pro gram. It is a program of filling insofar as possible all the needs of the farmers, from gasoline to credit unions, coop eratively. In their oil compounding plant they compound the best of lubri cating oils; to their seed cleaning plant the farmers bring clover and grass seed to be cleaned and returned to them; in their cooperative hatcheries the farmer's eggs are turned into chicks. To the cooperative elevators the farmers bring their grain to be sold or ground into feed, to their coopera tive creameries their cream. Other en terprises might be named and still others are contemplated. An attempt is being made to get the workers in the cities of Indiana to organize into cooperatives. It annears that in Amer ica consumers cooperation is to be taught to the cities by the farmers. Tony Lehner takes us to a couple of township Farm Bureau meetings. Tony is one of three field men employed by the Indiana Farm Bureau Cooperative Association. He hands out the gospel of cooperation without soft pedal or compromise and these weather-beaten, depression-buffeted sons and daugh ters of the soil take it and like it. T*e proof is in the constant and growing patronage they give to their coopera tive enterprises. We s~end Sunday at I. H. Hull's and thoroughly enjoy the hospitality and warmth of this Ameri can, farm-bred family. At the office the next day they honor us with a private showing of a couple of coop erative propaganda films with their employee-actors putting Hollywood's best to shame. These are really ab sorbing pictures, one entitled "True Love and Good Oil," and the other "You Reap What You Sow." We are impressed with the psychological ap peal of films as cooperative propa ganda. There is a depression, true, in all these farm states but their cooperative organizations in general are not going under. Rather they are increasing their activity in many lines and are full of plans and hopes for the morrow. We would hazard a guess that there is more hopefulness in the American farmer today than in the American worker in spite of all that has been said of the farmer's straitened cir cumstances. Perhaps it is because his feet are on solid substance, the land, in which there is always new life gener ating with the seasons regardless of the ups and downs of the industrial structure. 10 COOPERATION COOPERATION 11 Sequel A second trip to Chicago was neces sary Dec. 19th to attend a continuation of the organizational meeting of the "National Consumers Cooperative/' The path of the youngster it seems, was not to be all smooth. Sharp criticisms had been offered. Orthodox coopera- tors had attacked the set-up for not being cooperative, and the American Farm Bureau Federation was objecting because it was so cooperative as to take in general consumers. The A. F. B. F. exists to serve farmers only; why should it be interested in approving a cooperative wholesale for all con sumers? Let this wholesale be set up primarily for farmer-consumers and be incorporated under an agricultural marketing act—then they might be in terested. Moreover, such a wholesale might be able to take advantage of some of the national legislation favor ing farmers, whereas a general con sumers wholesale would not. Thus ran the argument of a committee of the A. F. B. P., supported by the Illinois Farm Supply Company. It looked as if these groups would drop out if the former broad plan of a consumers cooperative wholesale were adhered to. And so—although most of the other district wholesales stated that they had not changed their minds on this point —it was voted to refer the whole pro gram to a committee consisting of a representative from each organization. This committee is to review all cri ticisms of the "National Consumers Cooperative," draft a new set-up and report it back within a year. Mean while, some will be getting practice in actual cooperation by making group purchasing arrangements. There was a lengthy debate on the -question: Should the so-called educa tional cooperative organizations (Farm Bureau, Farmers Union, Cooperative League, etc.) have a vote in setting up and directing the policy of a business cooperative such as this, or should they act merely in an advisory ca pacity? The Farm Bureau bloc in sisted that if they were to accept the responsibility of acting advisorily, they should also have a vote. The Coopera tive League contingent, on the other hand, held that a cooperative business wholesale should be set up and man aged by its member wholesales only, and that the educational organizations should sit in merely for advice and counsel. The Indiana Farm Bureau agreed, pointing out the danger of top-down control by parent organ izations. This question is to be thrashed out in the committee, the next meeting of which is to be on Feb. 20th. • Criminal Waste We made the sad mistake of getting hungry while riding on a train recent ly. An order of bacon in the dining car cost us 70 cents. There were six slices, perhaps one-third of a pound at most. In other words, our bacon cost us well over $2 per pound. The farmer, at the same time, is getting about 2^/2 cents on the hoof. And yet the 14 largest packers, we are told, lost 44 cents per $100 of sales in 1931. Allowing for the fact that there is more than one way of salting down profits which do not show up in a profit and loss statement.—5-figure salaries, for example—the fact remains that the above absurd discrepancy in prices, quite typical of all lines, is the natural result of a system more wasteful than could have been created by a nation of lunatics. And the poor, dear packers have played their part in the crime of building such a system. At lunchtime we bought an apple (10 cents). It was one of those very big, very red and very tasteless apples grown in the Pacific Northwest. At the time our train was passing through the heart of New York state, than which no state produces better apples —for eating purposes. • On the Increase, Even Now The Farmers Union Cooperative, Oil Association of Bancroft, Nebr., in creased its volume of gasoline handled last year by 19,064 gallons and kero sene by 14,960 gallons. A 10% patron age dividend was paid. Profit-Piling Is the Evil; Not Competition .25 1.35 .75 1.85 1.10 2.25 1.00 1.00 1.10 L*0 1.00 1.50 .75 3.50 5.00 1.60 1.65 1.25 1.35 .75 COOPERATI Organ of the Con- Movement in the FES ,& sumers Cooperative United States '([7 Vol. XIX, No. 2 FEBRUARY, 1933 10 cents THE COOPERATIVE PROGRAM Aims .—Production for use.—not for profit. •—To each, plenty—to none, wealth or want. Philosophy •—Control by persons.—not by money. •—Voluntarism.—not coercion. •—Self-help.—not charity, or paternalism. •Recognition that a squarer economic deal will not be achieved ex cept by the cooperative efforts of those who most need it. .—Development of society by development of the character and intel ligence of individuals. •Recognition that the individual is strong only as he acts with the group. Technique for Accomplishing These Aims According to this Philosophy •—Ownership and control of industry by voluntary associations con sisting of consumers, run by consumers, functioning for consumers. I. The banding together of neighbors whose economic needs and tastes are similar into local associations for purchasing or other wise producing those needs, such associations to govern them selves by the following (Rochdale) principles: a.—Open membership, b.—One man, one vote, c.—Rate of interest on capital limited. d<— Market prices, or prices which provide a margin of safety, any net accumulations to be used jointly for the good of the group, or to be refunded to each, periodically, in proportion to his purchases. II. The banding together of these local associations into federations for wholesaling, manufacture, banking, insurance, education or other forms of cooperative action, these wholesales to govern themselves by principles basically similar to the above. II'I. The organizing of all production under these two types of as sociations, or variations therefrom which maintain the fundamen tal principle of democratic consumer control. 22 COOPERATION COO PERATBO N An organ to spread the knowledge of the Cooperative Movement, whereby the people, in voluntary association, produce and dis tribute for their own use the things they need. Published monthly by The Cooperative League of the U. S. A., 167 West 12th St., New York Gty.____________________ OSCAR COOLEY, Editor Contributing Editors George Halonen A. W. Warinner L, S. Herron Herman Liebman V. S. Alanne___________George Jacobson Entered as Second Class matter, December 19, 1917. at the Post Office at New York, N. Y., un der the Act of March 3. 1879. Price $1.00 a year. Vol. XIX, No. 2 Feb. 1933 Landward Out of the cities, back to the land, trek our depression-weary citizens. Out of the tenements, out of the rook eries — yes, and out of the more respectable pueblos along the avenues, pass the job-seeking-weary; on another search now, a search for a strip of land, a plow and a handful of seed, a search for the sources of production and a chance to translate willing ener gy into the wherewithal to live. So great is this migration during the last two years, according to the esti mates of the LI. S. Bureau of Agricul tural Economics, that by the end of 1932 our farm population had regained all that it had lost during the previous twenty years! "The farm has once more become a refuge," says the information service of the Federal Council of Churches, "many abandoned farm houses are once more occupied, rural schools have increased enrollments, and all the so cial and religious institutions are deal ing with an increasing farm popula tion." Even from business men comes the evidence. Colby Chester, the president of General Foods Corporation, ascribes a .part of his company's loss of food sales to this emigration from the cities, where people must buy every mouth ful of food, to the country, where they can produce much of it. Let us shed a tear for Mr. Chester. Because the people are turning to production for use, poor Mr. Chester's production for profit is being interfered with. Has it occurred to Mr. Chester that, because his and other firms like his have pro duced so assiduously for profit and salted the profit away so safely, that on this very account the people are now being forced to turn to production for use? • Which Side o£ the Cow There are many who deplore this migration. The editor is not among them. His slogan is "production for use," and you don't have to put "mass" in front of it to suit him. It is true that many of these ur- banites will find hard sledding on the farms. The first season they will raise more blisters than beans. Books won't tell them which side of the cow to sit down to. They'll soon find how igno rant they are of farm "production for use." And their standard of living will be low—but not so low as in the bread lines. There are too many people in the cities. We are too highly centralized. This migration proves it. We are too highly industrialized. We have piled intricate machine upon intricate machine, factory upon factory —'and as a result human beehive upon human beehive. But we are not so smart as the bees. We thought we could pull it off, but we couldn't. Now, some will say, all that ails us is the profit motive. That does ail us, granted. But assuming that profit mo tive could be wiped out tomorrow and replaced by true service motive, still would we be smart enough to run this stupendous machine? Doubtful. It won't hurt us any to reach back and take a new hold in a smaller way, building 'our production-for-use in dustries up on a modest scale, with democratic control and resident own ership, educating ourselves as we go— learning which side of the cow to sit down to. Consumers' Cooperation offers us the way to do this. Our cooperatives can not take over a Ford factory, but as they grow they can build smaller COOPERATION 23 plants. Efficiency will be sacrificed? Let it go. God, haven't we a bellyful of efficiency! • Our Opportunity What a priceless possession we have in Cooperation at this time! We do not evaluate it ' near highly enough. Economic society is bankrupt and the people are completely at a loss for a technique to build a better society. Co operation offers such a technique. A pall of hopelessness, cynicism, broken morale, casts darkness over the land. Cooperation has hope, light, vigor. The nation is like a crew of sailors whose ship has sunk under them and who are nigh exhausted from swim ming in a circle. They are at a point where they do not much care whether they sink or swim. They need a life- raft to bear them up and renew their faith in life. The bright hope and prom ise for the future which Cooperation offers is such a life-raft. Cooperation can not cure the de pression; that is a mess which capital ism must mop up as best it can. But Cooperation offers a way of reorgan izing society so that such a scourge may not descend upon us again. It of fers a system for establishing and building production for use, a system for guaranteeing such an equitable distribution of wealth that none will be in want—and not a mere paper system drawn by economists and theorists but a proven system which the workers and common people in over 40 coun tries have developed by practice. We know that it works. The local cooperative society of con sumers (with open membership, one consumer—one vote, and distribution of profits according to purchases— which is true industrial democracy) is the type-form, .the basic machine, of an entire production-for-use economy. Who runs this machine? The fra ternity of workers, pulling together. Singly they are powerless; cooperating together the strength of each is as the strength of ten. Here is the 'keynote which we should sound and sound again during these times: Fraternity. Technique o£ Fraternity America has staked her faith on in dividualism and individualism has failed her; consequently she is all at sea. Gone faith, gone hope. What now? Love. In its truest sense. Frater nity, mutuality, Cooperation. This is not gush; it is plain, hard, common sense. Wouldn't it be fine if we could all cooperate immediately, as one vast fraternity? We can't; let's be honest with ourselves. But we can as groups, as communities of workers bound to gether by common need and by loca tion, brothers by need and neighbors in fact. Group by group, locality by lo cality—thus the pyramid of fraternity is built. We are too apt to be smitten with the idea of great, mass grouping. But that may be impractical. There was a .tribe whose members warred so among themselves that they were in danger of extinction. Some wanted to hold a great, mass peace conclave of all the people. But they in habited a rugged, mountainous coun try, with narrow valleys and small, open meadows here and there. There was no large plain, or common, on which all could pitch their tents. And so they came together in groups, each in its own small meadow and made peace and learned to work together in these groups. Later each group sent representatives to a central conclave. The tribe grew in strength, wisdom and prosperity. It had learned through the practice of Consumers' Coopera tion. Shall that tribe be America? The knowledge of Cooperation as a way of creating the genuine fraternity which people long for is a pearl of great price which we in the movement possess in abundance. When will we cease babbling about rebates and go out to our starving countrymen with this nourishing man na in our hands? O. C. Cooperation is the one banner be neath which all the nations are able to unite.—T. W. Mercer. 24 COOPERATION Consumers' Cooperation in the United States By Oscar Cooley Beginning a series of articles in which we attempt to survey the pres ent status of the Consumers' Coopera tive Movement in this country. In so doing we have drawn heavily on the pamphlet written by J. P. ^^arbasse and last revised by Cedric Long in 1930. Our readers will, naturally, find more facts and figures on cooperatives that are members of The Cooperative League than on non-members, since we have access to more information concerning the former. But we shall try to give a true, though not an ex haustive, picture of the extent and character of the entire movement. In this issue we give a general sur vey of the movement; in future issues we will describe specific societies, take up special types such as credit unions, and discuss the structure and work of The Cooperative League. Statistics on the operations of societies in 1931 and 1932 will also be published in connec tion with future installments. I THE history of associations of con sumers for service to themselves, not for profit, dates back in the United States at least 88 years. In 1845, the year after the founding of the Roch dale Pioneers, the Workingmen's Pro tective Union opened its first coopera tive store in Boston. In 1853 we find the International Industrial Assembly of America, with a membership of 200,000, promoting cooperative enter prises; likewise the National Labor Union 13 years later. Then followed the Patrons of Husbandry (Grange), and the Knights of Labor who by 1877 had hundreds of stores throughout the Central and Eastern states. The New England Protective Union at one time had 400 branches located along the Atlantic seaboard. All of these, with the exception of a few of the farmers' stores established by the Grange, have faded away. "Countless societies," wrote Cedric Long, "have burst into bloom, flour ished for a few months and gradually withered away again. Until the past 15 years, the United States had no gen uine national cooperative movement^- never anything better than some loose aggregations of isolated cooperative societies. As recently as the beginning of the World War we still were in the dark ages of Cooperation in America. Hundreds of struggling little societies were scattered over the country, each one completely separated from its kind; most of them ignorant of similar efforts being made elsewhere; no opportunity for collective buying; no standard of form, of structure, of technique." And little recognition, we might add, that cooperation is more than an eco nomic method, that it is a movement of radical social change, requiring a right-about-face in the psychology of the individual and therefore calling for a constant and expert educational pro gram to establish the cultural base necessary. Central leadership was the need. It came with the establishment of The Cooperative League in March, 1916, by a handful of enthusiasts under the leadership of Dr. J. P. Warbasse. For some years Dr. and Mrs. Warbasse traveled about the country, forming contacts with existing cooperative so cieties, helping and advising by virtue of their knowledge gained on exten sive trips abroad, and drawing these groups together into a national, educa tional union, with headquarters in New York. A national magazine, CO OPERATION, was started in 1914. Regular bulletins, .pamphlets and other educational materials were issued, speakers were sent out, legal advice was given. And finally the first na tional Consumers Cooperative Con gress was convened in Springfield, 111., in 1918. Seven congresses have been held since that time, each of them a rally of cooperative leaders and dele- COOPERATION 25 gates of societies from many parts of the country. In England the Coopera tive Union has been called "the soul of the movement"; here in America The Cooperative League has had to be this and more; for here we have no great national Cooperative Whole sale Society, as England has in addi tion to its Union, to bring our societies together into a united, national pro gram. Make-Up of the Movement How many and what type are the co operative societies in the United States at the present .time? The total number of consumers' co operative societies is estimated to be 2000 or over. Approximately half of these operate general merchandise or farm supply stores in the small towns and villages. Some 400 have grocery or meat stores; some 600 oil associa tions; and the balance have restau rants, bakeries, apartment houses, dai ries, etc. These societies can be divided, roughly, in two classes: the foreign- born, or those founded by foreign- born, and the American farmers. The societies which have made the greatest success over a period of years are the foreign-born. Cooperation is a part of their culture, brought with them from the homeland. The Finns, for ex ample, upon their arrival here found it as natural to set up cooperative stores as it was for the Puritans to establish churches. Then, too, their natural im pulse to herd together for protection and mutual aid, upon finding them selves isolated in a strange land, sur rounded by a babel of strange tongues, helped them to cooperate successfully. Unhappily, as they learned American ways and caught the American con tagion of profit-seeking, and as political dissension invaded their ranks, some of their enterprises failed, but the so cieties established by the Finns in the Lake Superior country and in New England, in cities like Waukegan, 111., Fairport Harbor, O., and Brooklyn, N. Y., still form the backbone of the co operative store movement. Other suc cessful racial cooperatives are the Bohemian, Italian, Jewish, Slovenian, Russian, German and Swedish. In many of these groups, political So cialism, as well as Cooperation, is a "tie that binds," and a large measure of working-class-consciousness is pres ent. This is an aid in binding the group together in the common enter prise of the cooperative society, and the latter is looked upon as an integral part of the broad, working-class pro gram. At the same time, this factor, together with the racial segregation so prevalent in American communities, in many cases has undoubtedly restricted the cooperative from extending itself among consumers who as yet lack class-consciousness or who hold more conservative opinions. Following is a tabulation of the co operatives originally founded by for eign-born (though numbering many American-born at present). These are chiefly League societies. The figures are approximate. No. of societies Total Members Finnish Bohemian Italian Jewish Slovenian Russian Swedish 117 3 19 9 2 2 1 32315 2044 2001 5412 732 318 150 153 42972 The majority of these are store so cieties, but in many cases they operate also bakeries, dairies, coal-yards and other services. The single Swedish so ciety is the Cafe Idrot, a unique co operative workers' club-restaurant in Chicago. The Jewish group includes two large housing societies, the Amal gamated Cooperative Apartments and Amalgamated Dwellings of New York City, but the balance are bakeries. Most of these Jewish bakeries were established during and after the War, at a time of high bread prices, and were fostered by branches of the Workmen's Circle, fraternal Socialist workers' organization. Not included in this tabulation is the Workmen's Furniture Fire Insurance Society of New York, started in 1872 26 COOPERATION by Germans, but now 'having 61,600 members of all nationalities and oper ating 90 branches in many states. This unique organization will be discussed in more detail in a later issue. Nor have we included the many large fraternal organizations offering sick and death benefits on a cooperative plan. An other type not included are the Finnish boarding houses, many of which were originally established largely by un married men, lately arrived in the country, but now less flourishing—• perhaps because the single men are no longer single! Among the Farmers The American farmers' cooperative societies, or "associations" as they are more often called, are birds of a somewhat different feather. In general they are more strictly "economic," or utilitarian. The farmers are led to co operate in purchasing, just as in mar keting, because it appears that it will pay them to do so. Swindled and horn- swoggled for years by salesmen of fer tilizer, seed, stock foods, spavin cures and gold bricks ad infinitum, the farm ers combine for purchasing simply to get better goods at lower prices, not to help bring the cooperative common wealth, of which most of them have no conception. They are not class-con scious; they are on the other hand highly individualistic. They do not fraternize as Socialist "comrades"; in fact to most of them Socialism is anath ema! When they practice consumers' cooperation, they are not aware that they are doing anything "radical"; to them it is just plain, common sense— as indeed it is. The result of this atti tude is that they cooperate as long as it pays them to, and don't when it doesn't. At present, however, in certain sec tions as in Nebraska and the North west under the urge of the Farmers' Union, and in Indiana, consumers' co operation among American farmers is taking on something of the aspect of a crusade. We find the influential "Neb raska Union Farmer," published in Omaha, preaching the faith of Roch dale as well-nigh the salvation of the farmer. Farther north, "The Coopera tive Builder," published by the Cen tral Cooperative Wholesale of Su perior, in addition to its large circula tion among the Finns and others in the 101 store societies of the Central Wholesale group, is now circulated to 12,600 farmers, chiefly American, who are members of the Midland Coopera tive Oil Association in Minnesota and Wisconsin. Thus the influence of the Finnish class-conscious cooperators is spreading over the prairies. The farm cooroerative purchasing as sociations tend to specialize in farm supplies, such as fertilizers, feeds, gas oline and oils, in contrast to the co operative societies of the foreign groups which tend to deal primarily in personal daily necessities such as food products and general merchandise. This is probably because the farmer is not used to thinking of his groceries as an important item of expenditure. After all, he can produce a good share of his groceries, and once did; perhaps he is still thinking in terms of those days. His feed and fertilizer bills loom up more threateningly and it is natural that he should seek to save in these lines first. Cooperative purchasing by farmers has sprung largely from cooperative marketing. Having found that the co operative techniques—one man, one vote; limited rate of interest; and pat ronage refunds—work in marketing associations, it is an easy step to pur chasing associations. Often these are fostered by the same farm organiza tion, such as the Farmers' Union. Usu ally they are separately incorporated, although many of the cooperative ele vators for marketing grain also serve, as feed stores. And mention should be made of the cooperative purchasing activities of such large marketing or ganizations as the Land O'Lakes Creameries, and the Washington Co operative Egg and Poultry Producers' Association. The latter's feed purchas ing department handles about 7000 carloads a year. Such volume has been aggregated by the farm movement so that produc- COOPERATION 27 tion plants are not uncommon. For ex ample, there are plants for compound ing lubricating oils in Minneapolis, In dianapolis and Kansas City, Mo. The Eastern States Farmers' Exchange re cently opened its second fertilizer plant, at Wilmington, Del. This or ganization, as well as the Grange League Federation Exchange of New York and others, also manufactures its own feeds. These two organizations are notably utilitarian in their outlook on cooperation. A recent bulletin of the Federal Farm Board estimates the total number of farmers' cooperative purchasing as sociations in 1931 at 1588, membership 392,000, business $215,000,000. There are estimated to be in addi tion some 2000 mutual insurance asso ciations for the protection of buildings, crops and livestock of farmers. In some districts there are rural cooperative telephone companies, with notably low rates. Both of these types are of long standing. A cooperative electric light and power company serves a rural district in Washington. Cooper ative burial associations are another type now coming to the fore in Minne sota making large savings. The Oil Associations But most successful of all among the farmers are the cooperative oil associa tions, each serving perhaps a county or more, distributing gasoline and oils in bulk, and also operating service sta tions, which carry a line of tires, bat teries and other accessories as well. We estimate the number of such asso ciations to be at least 600. They arg operating in direct competition with the largest profit oil companies. "When our cooperative oil associa tions came into the field," states L. S. Herron, editor of the "Nebraska Union Farmer," in his address, "Cooperation, The Way Out," published in 1931, "the old-line companies reduced their retail prices 3 or 4 cents a gallon. In addition to causing this saving in price, our local associations have been mak ing patronage dividends of 12% to 20%, averaging about 15% through out the state." Fifty cooperative oil companies in Minnesota and Wisconsin did a total business of over $2,500,000 and show ed a net of $320,343, or 12.32%, in 1931, according to a report of the Wis consin department of agriculture and markets. There are at least six cooperative oil wholesales in the central West, serv ing these local oil cooperatives. The total volume of gasoline and kerosene handled by these wholesales in 1932 was approximately 14,000 cars of gasoline and kerosene, and propor tionate amounts of other oil products. Aside from those societies which were organized by and consist largely of foreign-born, and the farmer groups, we can count a handful of societies, American working-class and middle- class. Examples of the latter are the cafeteria chain, Consumers' Coopera tive Services, with 4000 members, and a few housing societies in New York City, a large store society in Sault Ste. Marie, Mich., and a few budding at tempts at cooperative buying by liberal groups here and there. The American industrial worker has not as yet made a conspicuous success in co operation. In some communities he is, however, in increasing numbers coming into the cooperatives founded and built up by his brother worker of for eign origin. (To be continued) Co-op Society in Stricken Coal Region Forges Ahead Black depression in the coal-mining region of southern Ohio apparently doesn't faze the New Cooperative Company (24 years old) of Dillonvale a particle. This cooperative store so ciety has just opened a new branch in Brookside, and this is the second branch to be opened within a year. The society now has six stores. Total sales in 1932 were $236,038 and net gain was $1998. This co-op is in sharp competition, not only with chain stores but with "company" stores owned by the mining companies. 28 COOPERATION 1:1 r'4- J The first international cooperative factory, Stockholm. The raised portion at right is a glass erection which is perpetually illuminated by lamps on burning test—an advertisement which is visible for miles. Luma—A Challenge to the Trusts AGAIN the cooperators of Sweden are on the warpath. It is the electric lamp trust they are gunning for this time. The fight will hold especial interest to Americans because of the dominating part which our General Electric Company plays in this inter national trust. The story of the amalgamation of European electric lamp manufacturers, of the wiping out of small companies, and of the international agreements and conspiracies to limit competition, cul minating in the international cartel, Phoebus, with headquarters at Gene va; and then of the creation of the co operative lamp factory at Stockholm, Luma, is told by Anders Hedberg, Luma's manager, in a pamphlet re cently arrived at the office of The Co operative League. It is translated into English by John Downie and published by the English Cooperative Union at sixpence. To Swedish cooperators, never slow to push into cooperative production, belongs the credit of initiating this of fensive. The Luma lamp factory in Stockholm was built by the Swedish C. W. S. Then, in the spring of 1931, the cooperative wholesales of Sweden, Norway, Denmark and Finland joined in forming the North European Luma Cooperative Society, which took over the new factory. This is the first inter national industrial cooperative society in the world. Its shares are held by these four wholesales, each of which has an equal vote in the general meet ing. The management rests in a Su pervisory Council (corresponding to a board of directors) consisting of representatives of these wholesales, and in a Board of Managers (2). Luma commenced operations in the spring of 1931, and the co-op lamps soon began to find their way into the homes of North European cooperators. Even before the factory was finished, the cartel lowered its prices in Sweden from Is. 6d. for the 25-watt lamp to Is. Id., and soon after the Luma lamp was COOPERATION 29 placed on the market, the cartel had come down to the Luma price, lid. (Some of this drop, but certainly no£ all of it, may be due to falling price levels). In addition to making consumers this saving not only on the 5 million lamps which it turned out in its first year but on the millions of lamps which its competitors sold, Luma closed its first year with a net surplus of £6000. And yet there are those who loo'k upon cooperation as a mere grocery store affair! The present capacity of the Luma factory is 15,000 lamps a day. It has 248 workers, two-thirds of them wo men. Those on time rate earn an aver age of 43s. per week, and those on piece rates, between 50s. and 55s. Concerning the quality of the Luma lamps, we read the following testi monial: "I, the undersigned, employed as mechanic at Krokslatt factory, Claes Johansson-Molnlycke Co., spinning section, have charge of the electric lighting. In my flat there are 48 lamps burning about 147 hours a week. On llth September I received six Luma lamps, which I inserted on that day. They are still in service. In the interval I have inserted 164 new bulbs of other makes in the remaining 42 lamps. I have, therefore, much pleasure in warmly recommending Luma lamps.— Karl Johansson." This is an absorbing story, or rather an absorbing first chapter of a story. For the cooperative offensive against the lamp trust has apparently just be gun. The last words in this pamphlet are: "The cartel has requested the Lu ma Society to cease matting Luma lamps, as these are infringing the Trust's patents. This, Luma flatly denies, asserting that the fullest in vestigation was made and every satis faction obtained that there was no in fringement before ever the factory was started." The world will yet hear this clash of arms. Technocracy and Cooperation By George Halonen WE cooperators are certainly poor publicity men! For years and years we have known and proved that the profit system cannot wor.k. We have put our theory of a non-profit system into practice in our consumers' cooperative societies. Thus through practical examples we have shown that production and distribution can be ar ranged without the profit motive. How ever, we have not been able to get our message across to the large masses. Our progress has been relatively slow. The daily press has ignored our mes sage, yes—even stifled it, for obvious reasons. Now come the "technocrats," and although their spokesman says that "technocracy proposes no solution," their schemes are getting the widest publicity. Why? Perhaps because they understand the psychology of the masses better than we. To say and prove that "with what is known of technology today in this country, it is now necessary for the adult popula tion, aged 25 to 45, to work but 660 hours per year per individual to pro duce a standard of living for the en tire population ten times above the average income .of 1929," the interest of not only the unemployed but of all the worlkers is naturally aroused. Moreover, when it is added that "we do not need any politicians to achieve this end," no wonder that "everybody talks about technocracy." The technocrats prove that in the last 130 years the rate of output of man increased 9,000,000 times. "Today America is equipped with one billion installed horsepower in prime movers. If this were operated at capacity, it would do worfc at a rate, which if we 30 COOPERATION attempted to do by man power alone, would require over five times the popu lation of the globe." New machines have been developed constantly. Thousands of workers are thrown out of work on account of some new labor- saving invention. In New Jersey, as an example, a new factory for the produc tion of rayon yarn is nearing comple tion, which will be entirely mechanical and capable of producing twenty-four hours a day without a single worker in the plant! The technocrats give many astound ing examples of socially useful and necessary inventions, which have not been put into practice, because they would have created havoc in the pres ent industrial set-up. As a result of this technological development, unem ployment is rampant and. . .the "price system" has failed, say the technocrats. It is to be admitted, of course, that the technocrats have given us many sensational facts in a popular and catchy style. But they present nothing fundamentally or basically new. The consumers' cooperative movement has shown that as long as we have the so cio-economic system which is based on profit, technical improvement will not in the main profit mankind as a whole, but chiefly those who control the ma chinery of production and distribution for their private gain. Many Admit It Now It is common knowledge that some thing is wrong. Even the churches are warning the capitalists. The Federal Council of Churches in its message to its membership, drawn up at its quad rennial meeting in Indianapolis; states that "economic exploitation, wherein the acquisitive instinct has not alone outstript but submerged the sense of social responsibility, is bearing and eating its own bitter fruit today. . . . Corporate greed has brought its com mensurate consequences of corporate woe. "Christianity was not founded for the purpose of supporting the capital istic system," says Father Gillis, repre senting views which are widespread among the Catholic clergy. On top of all this comes the report of the Research Committee on Social Trends, which was appointed by presi dent Hoover in 1929. This committee had more than 500 investigators, who certainly were not anti-capitalists. However, they admit that ". . the death rates are still much higher in the lower income groups than in others. . . One man in ten is buried a pauper. . . Un- les there can be a more impressive in tegration of social skills than is re vealed by recent trends, there can be no assurance that these alternatives with violent revolution and dark pe riods of repression can be avoided. . ." The cooperative movement has pointed out all this already decades ago. Now these facts are recog nized—but what is being done about them? Does technocracy solve these problems? No! The technocrats are wrong in maintaining that the basis of the present day evils is in the develop ment of technology. They are wrong when they propose that the "price sys tem"—their misnomer for the profit system—can be replaced by technoc racy, a dictatorship of technologists. They altogether either forget or ignore the composition of the human society. They show no understanding of the class relationships in a society, or the human factors of which the present so ciety is composed. Now Is the Time for Cooperation The technocrats and others have un doubtedly done great work in bringing to light facts of the contradictions created by the profit system. They have unquestionably done much that will help in changing the people's ideas and their traditional views. But nothing will be changed or accomplished sim ply by being a "yes-man" or sym pathetic towards these conclusions. However, technocracy offers no pana cea. On the contrary, judging by what the technocrats have presented in sup port of their views to date, technoc racy is only a means to fascism and dictatorship. The consumers' cooperative move ment gives something practical for to- COOPERATION 31 day and for tomorrow. Now it should awaken to its possibilities. Now, if ever, our theories and practice should be popularized and our activities ex panded by getting the masses into our movement. Thus we would be doing our bit, concretely, towards making the world the paradise the technologists say would be possible today without the profit system. News and Comment Cutting Out Waste By cooperation wastes are effective ly eliminated. One of the Indiana coun ty cooperative associations put in a bulk plant and began to distribute gas oline and kerosene among the farm ers. At the time they began there were seven different tank wagons driving down the same road, delivering similar products to the farmers along that road and each and every one of them carry ing a high overhead because of the scattered business. They had an over head cost of delivery which was just seven times as great as it needed to be. Within a two-year period of time the cooperative was delivering 80 or 90% of the petroleum products to the farm ers in that county and one tank wagon with one operator was making deliv eries and giving service which had formerly been'carried on by seven dif ferent men. • Nebraska's 1932 Record Sales of the Farmers Union State Exchange of Nebraska for 1932 (not including sales from branch stores) totaled $1,192,837.91, compared with sales of $1.571,028.29 for 1931. Over a half of the decrease in sales occurred in the first quarter and was largely due. in Manager McCarthy's belief, to weather conditions and deep snow. Total sales in 1930 were $2,118,211. Total net earnings for 1932 were $22,297.63, compared with $48,052.79 for 1931. Expenses of the State Exchange have dropped steadily in the last three years. In 1930 they totalled $122,301; in 1931, $111,235; and in 1932, $92.- 826. As to volume of oil business: 64 as sociations in 1932 purchased a total of 1318 cars of gasoline, kerosene and distillate. This compares with 1738 cars in 1931 and 1551 cars in 1930. Ship ments of lubricating oils totaled 205,- 505 gallons in 1932 and 269,710 gal lons in 1931; and of grease, 198,167 in 1932 and 214,016 in 1931. "These reduced sales reflect the fi nancial condition of agriculture," writes Mr. McCarthy in the "Nebraska Union Farmer," "but speak volumes for the loyalty of our cooperative asso ciations. . . These are strenuous times. Our farmers have little to spend. Ten- cent corn won't pay taxes and interest. There's nothing left to buy merchan dise. . . . We have a deep feeling of gratitude for those loyal souls who, in spite of hardship and reduced buying power, are sticking tighter than cockleburs to their cooperatives." • Opens New Store The Eastern States Farmers' Ex change has recently opened a fertilizer plant in Wilmington, Del., to take care of the requirements of members in the southern part of its territory, New Jersey, Delaware, Pennsylvania and Maryland. It has another plant in Bos ton. The Exchange also opened a new service store on December 14, at Man chester, N. H. This is its fourth store, others being located at Worcester, Shelburne Falls and Great Barrington, Mass. Most of the ooods of the Ex change, which are chiefly feeds and fertilizer, are distributed to members by the car-door method. The stores are merely a supplement to the car-door service. The Manchester store will serve local farmers around Manchester and will also serve as a wholesale depot for much of New Hampshire. 32 COOPERATION Orders will be taken in advance and bulked in car lots; Five cents a bag over the car-door price will be charged to cover the expense of the store. The Exchange is 14 years old. It has 42,000 members in nine states. It gained 4000 members in 1932. • Going the Way of the Dinosaurs? "The dinosaurs, just before they vanished, grew to an incredible size- some of them a hundred feet long. But they became too large and clumsy for their environment, so they became ex tinct, giving way to smaller but more active and intelligent animals. The huge size and the enormous wealth of the trusts and syndicates, and the tre mendous bulk of our industrial system of the present day, would seem to in dicate that they have at least entered their period of excessive development. They may still become larger and wealthier than they are now; but they already exhibit symptoms of being out of harmony with their environment. They seem destined to perish before some more suitable form of industrial organization^-perhaps the lowly co operative enterprise."^*John H. Die- trich in "What Is Revolution?" • A Good Subject John H. Dietrich, minister of the First Unitarian Society of Minnea polis, will speak on "The Cooperative Movement," Sunday morning, Feb. 26, at the Shubert Theatre in that city. This is one of a regular series on Modern Economic Theories. These tal'ks are broadcast over WDGY. • Rough on Rats Rats are an abomination. On eastern farms they cause an average loss of $40 a year per farm. And if one farmer gets busy and puts out rat poison, the rats pick up, whole kit and caboodle, and move on to the next farm. How are you going to get around that? By cooperation. All the farmers put out poison at once. Such a cooperative anti-rat cam paign is being sponsored in eastern farming states by the Dept. of Agricul ture, through the county agents. The cost of the bait to the farmers will be about $30,000 but it is expected to save them $1,200,000. • Sense of Proportion An institution we like is Common wealth College in Mena, Ark. We have never been there, but if the little fortnightly paper put out by the stu dents and instructors is a true reflec tion, they have pluck and self-reliance and the if-you-want-thing-done-do-it- yourself philosophy. Both students and teachers "work their way" large ly. For board, room and laundry, each does 20 hours of work .per week on the farm-campus. The school pro duces most of its own food. Various phases of labor economics are taught, with a conspicuous absence of ortho doxy. We get from the fortnightly also a feeling of sense of proportion, a pas sion for the cause of the worker, and also an appreciation of the comedy as well as tragedy of life, an appreciation rare in labor circles. • Government Employees Form Buying Association A "National Cooperative Associa tion" has been formed in Washington. D. C. Membership is confined to Government Clerks and to present and former members of the military serv ices resident in Washington. These total about 100,000. At last report the membership had reached 6,000. Mem bership is obtained through" the pay ment of $1.25 as an initial fee and an annual dues of $3.25 per year. The association secures discounts from business concerns and distributes them in turn to members monthly. The first opportunity offered the membership was a 10% cut in laundry rates in one of the largest steam laun dries in Washington, later extended to another laundry. Washington is a heavy patronizer of laundries due to the large amount of employment of both husband and wife and the large num- COOPERATION 33 ber of women employees in the District of Columbia. A serious attempt is being made to build a cooperative dairy out of one of the smaller but high-quality distributors already in existence. Some difficulty is experienced as the dairy industry is esceptionally well organ ized here and quite willing to defend1 itself against competition. This is evi-t denced by the price of milk locally^* 13 cents per quart. A start has been made allowing a rebate of 5% with the hope of eventually reducing the price to 9c. A reduction in gasoline prices is available to members at sev eral stations and the association hopes to increase the number. Its president also states that negotiations are pend ing that will ma'ke groceries available at cut prices. A few weeks ago the association held an open house in honor of the opening of its own store. The head quarters and store combined occupy about half the floor space on the 4th floor of a large downtown office build ing. The store sells ready-made wo men's clothing and accessories and men's suits and overcoats. The wo men's dresses are brought down weekly from New York. The president states the activities of the new group have already caused Washington depart ment stores to lower the prices of their goods. Alterations are taiken care of at cost in the workrooms of the society. In addition, the association has a lit erary service of an advisory character, an insurance advisor and a medical clinic is being set up with its own drug department. Some educational work in the his tory and ideals of the cooperative movement is said to be contemplated. The officers are in each case former service men. The president is W. A. Anthony. e Education 5%, Interest 2% At the annual meeting of the Orr Farmers Cooperative Trading Com pany in far northern Minnesota, the members voted to set aside 5% to the educational fund and but 2% as in terest on share capital. The Fruits of Capitalism In these days of wage-cutting, are the "wages of capital" taking their cuts, too? It appears not. Total divi dends and interest payments for the first 10 months of 1932 were $6,030,- 000,000, as compared with $6,028.000,- 000 in the entire year of 1928. These figures are given by the conservative New York Journal of Commerce and are considered accurate enough to be quoted by the U. S. Dept. of Com merce. While the "wages of capital" have had an actual net increase in the last four years, the waaes of labor have fallen more than a half, states Colston E. Warne, writing for Federated Press. Thus piles up the evidence that our capital structure, with its demand for "wages" (whether it is working or not), is eating us alive. The only rem edy is to put capital to work to earn its wages in the service of the people. This is what is done when the con sumers take over the ownership and control of their own capital structure through consumers' cooperation. Phony Fire Extinguishers How our benevolent government withholds information from us that might save hundreds of lives, is told in a recent bulletin of Consumers Re search, Inc., which discusses fire ex tinguishers. Consumers Research con demns as ineffective the so-called hand-grenade type of extinguishers, consisting of a bottle or globe filled, usually, with carbon tetrachloride. "Government departments," says Con sumers Research, "know all about the inefficiency of these devices and the gross public deception involved in their sale, but function to restrain them neither by obvious regulatory action nor by simple publication of the facts, easily expressible in a single mimeo graphed page of the hundred thousand or so, issued annually to the press by government publicity bureaus. Such release, given wide publicity, would save millions in dollars to American consumers and hundreds of lives." 34 COOPERATION The Facts About Cash and Credit THE well-known evils of credit trading were strikingly pictured when the Accounting Department of the Central Cooperative Wholesale of Superior recently issued the results of a questionnaire study of cash and credit in the cooperative stores of that territory. Of particular interest is the fact that 14 stores changed from credit to cash in 1932, and without calamitous effects. From the summary of returns, pre pared under the direction of Arnold J. Ronn, we cite the following: The 69 stores that reported had over a half million dollars tied up in ac counts receivable, of which the man agers estimated $150,000 as being of no value. The total losses due to bad accounts since the stores have been in business (15 to 18 years) are over $200,000. Of the 69 stores reporting, 37 stores (57% of the total number) sell for strictly cash; 32 stores (46%) sell on credit. Of the 37 stores that sell for cash only, 14 went on a cash basis in 1932; 7 in 1931; 7 in 1930; 3 in 1929; and 6 prior to 1929. The following reasons were given for changing from credit to cash trad ing: 1. Lack of working capital. 2. Closing of mines. 3. Unable to compete with prices. 4. Accounts receivable too high. 5. Too many poor risks. 6. More economical to sell for cash. 7. To avoid losses from bad ac counts. 8. To escape evils of credit business. 9. Only possible way to 'keep the Accounts Receivable from growing. 10. Could not buy for cash and sell on credit. 11. To reduce expenses. 12. To avoid bankruptcy. 13. Only solution to the credit evil. 14. Self-preservation. What Happened When the change was made from credit to cash, the sales volume dropped in 18 stores. Practically all of these 18 stated that the decrease was very slight and temporary; only in a very few instances was the drop substantial. Some reported that the financial condi tion of their association was recover ing from its previously low state as a result of the cash basis—'in spite of the loss in sales; 14 stores reported that their sales remained the same after the cash system was adopted, while one reported an increase. Four reported that their sales had dropped but could not determine if it was due to the cash system or other reasons. Two reporte'd having lost a few customers that they have been unable to get back, while most of the others were quite fortunate in getting their customers back. A couple of the stores that are on a cash basis complained that some of their customers are unreasonable in that they expect the managers to ex tend them credit at their own personal risk. One stated that "We have found it impossible to sell 100% for cash." Another reported that "Our strictly cash system has brought a loss in sales of large items, such as furniture, barn equipment, etc." Conclusions The experience of these 69 stores in the matter of credit trading has been most excessively expensive, in many instances making the cooperative an extra-heavy burden on its members and patrons rather than a blessing. The replies received show most con clusively that liberal credit trading not only seriously handicaps the store, but actually threatens its very life. We find that the most successful of these 69 stores are those that sell strictly for cash, and next in order those that allow but a highly restricted credit. We also find that stores pre viously allowing liberal credit have COOPERATION 35 saved themselves from bankruptcy by changing over to strictly cash* Credit trading is a "luxury" that most of our cooperative stores simply cannot afford,—not even those that are well fixed can afford it for a very long time. Our cooperatives must learn to face the facts in this matter,—it's a question of life and death in most in stances, it's "cash or bust!" Bear in mind that cash trading is never known to have bankrupted a store, while credit trading has taken a heavy toll, and will continue to do so. Of course, cash trading will not come of itself; it generally requires a lot of intensive educational work among the patrons to convince them of the ever-present evils of credit and advantages of cash trading. The di rectors and managers, who are nat urally most familiar with questions of this type, are charged with the respon sibility of enlightening the members on this subject and working for the goal. . "CASH TRADING." Cooperation Abroad Growing in Quality The membership of 548 German consumers' societies belonging to the Central Union as of Sept. 30, 1932. was 2,780,910, which represents a de crease of 143,133 in a year, chiefly due to the policy of the German societies to eliminate disloyal members. Al though total sales dropped about 25%, purchases from the German wholesale (G. E. G.) increased, and sales of G. E. G. goods during the third quarter represented 46.69% of total sales of the societies,. a record percentage. Goods produced in G. E. G. coopera tive factories were 17.31 % of the total, also a higher percentage than ever be fore. This goes to show that the Ger man movement is growing in quality if not in quantity. • British To Push Co-op Press The British cooperative movement is building up a Press Fund for im proving its cooperative papers and ex panding their circulation. The aim is to protect the movement against the propaganda of the profit press. So cieties are being asked to guarantee a, certain minimum of advertising per year. At this writing 316 retail societies have guaranteed over £6000 per year. • Economic Superiority Figures don't lie. Here are some figures from Finland that prove the economy of cooperative, over private, business: In the operations of the two Finnish cooperative wholesale societies in 1931, the overhead expense was 4% of sales as compared with 11.1% for the profit wholesales of Finland; gross profits were 5.7% for the cooperative and 9.6% for the profit wholesales; and net was 1.7% for the cooperative and 1.5 % for the profit wholesales. • In Spite of Depression During the last ten years South Wales has been experiencing depres sion because of the slump in coal mining. In that time a quarter of a mil lion people have emigrated, and those who are left are largely unemployed or under-employed. In spite of this, the cooperative movement has not merely held its own but has improved its posi tion in membership, share capital, and sales. The Mid-Rhondda Society has increased its membership from 3,549 in 1925 to 5,987 in 1932 and its share capital from £16,304 to £18,405. The. Ynysybwl Society, although it suffered a slight decrease in membership during these years, increased its sales by £9,- 712 and its share capital by £31,258. • Co-opportunity Month Liverpool Society celebrates Octo ber as Cooperative Month, as is done in the U. S., but calls it "Co-oppor tunity Month." 36 COOPERATION Cooperative Youth News from Hubbardston, Mass., Cooperative Club Just a few lines to let the world know that Hubbardston has a cooperative club. We or ganized eight months ago and at present have forty members all interested in the cooperative movement. "We meet twice a month at the Farmers' Hall. This hall is owned and run by The Farmers' Cooperative Trading Associa tion of Hubbardston. In the basement is the grain business and upstairs is the hall. We have a dramatic group, and we are now getting up a glee club. December 17-th the club held a program night for the benefit of the older peo ple. We had a one act comedy in Finnish and an interesting time. We hold dances and card par ties once a month and we always have a large crowd present. We have a library with a fine collection of cooperative books. At present we are having a drive for more books. A member presents the club with a book and challenges another member to do likewise. Following is a list of the officers: President—Veikko Merikanto Secretary—Gertrude Johnson Treasurer—Hilma Haltunen Vice-President—Andrew Erickson Educational Committee—Olavi Wagg, Carl Wanhala, Onni Kujala Social Committee—Leevi Hakkila, Carl Poi- konen, Victor Tammi, Veikko Merikanto Sports Committee—Herbert Virta, Tarmo Hannula, Onni Kujala, "William Herk Refreshments—Kenneth Hannula Editors—Leo Wagg, "Raivaaja Cooperative Corner"; Olavi Wagg, "Cooperation" We are a member of the "Massachusetts Youth League," and we will participate in the one act play competition to be held by the "League." Happy New Year to all. • Olavi Wagg Fitchburg is truly a cooperative city. That fact is evi denced too by the large crowds that come to the Youth Club meetings and also to the Wo men's Guild meetings and affairs. The Youth Club is very active. We have at the present writing 117 members in good stand ing and new members coming in at every meet ing. The club rooms are occupied all the time. Perhaps it's a ping-pong tournament or a game of billiards going on. Then you're sure to find some one perusing the cooperative literature which is always on hand. The new room of the Women's Guild was officially opened the 22nd of January and the Youth Club's room (where the entertainment was held) was filled to overflowing. The local Youth Club members worked hand-in-hand with the Guild members in making this affair the huge success that it was. Study classes were held on each Monday night and now plans are in readiness to conduct other classes, of which we shall hear more later. An Inter-Club Play Contest will be held in Fitchburg February 2nd at the Saima Hall. Maynard and Hubbardston and Fitchburg are taking part. Maynard has selected the play "Ambition" while Hubbardston has selected "Dawd Cast Ya Both" and Fitchburg, "The Valiant." Everyone is anxious to see the out come of this contest. The club presenting the best one-act play in the best manner gets a prize. The club is still running the subscription drive to secure new readers to "COOPERA TION" and also to the "Cooperative Builder." The Massachusetts Cooperative Youth League (formed last fall) has held quite a few meetings and they have big things planned, some of which are already beginning to leak out. There has been some talk about a reunion of Brookwood's students to be held here in Fitch burg. A good time is in store for everyone if the plans go through. See you there! A. M. L. • Chicago Heard From Our Junior Club has about 25 to 30 mem bers. They make up for the small number by an interest which has just recently developed but which seems to be there to stay. We are at present trying to increase this number with a membership drive, which will end with our annual meeting on January 25th. In this mem bership drive we are following the plan of the Cleveland Youth League; i. e. dividing the group into two sides, the boys and the girls. Whichever side brings in less new members is the loser and must make a party for the win ners. An important branch of our club is the study class, which has about 10 or 15 of our most active members. We follow the Cooperative League's course on "Principles of Coopera tion" and have some interesting discussions. It was largely through its influence that our club sent seven students to the Central States League's Summer School last year. This Study Class also edits and publishes a monthly pbper "The Cooperationist." We also have a "Kiddy Club" for children up to 14 years of age. This was started by the Study Class—is financed and run by our Junior Club. Our club bought a movie projector and we find this invaluable in keeping the children interested. On December 30th the Kiddy Club held a Christmas party or program with only the children taking part. The attendance is regularly around 40 or 50 and has even gone as high as 74! They usually meet on Sunday after noons and we expect big things of them in the future. We are actively taking up the organization COOPERATION 37 of a "Women's Guild and are now only waiting for the annual meeting of our Cooperative So ciety (Workmen's Cooperative Mercantile As sociation) so that they may get behind this project with us. Our club gets publicity through our column in the Bohemian Socialist paper "Spravedlnost" (Justice). We have quite a program planned for this year, including excursions to cooperatives in other towns, open air meetings and such under takings to advertise cooperation and our co operative store. One of the main things in holding a meeting is to maintain pep. If a meeting proceeds slow ly it is a cinch that the members will lose in terest. Although I don't know how it would work out, I think it would be a good idea to have a cheerleader at every meeting, lead a cheer between each order of business. Yours in Cooperation Frank Pesek • In Rock, Mich., the District Section Com mittee is organizing a traveling library. Each of the four affiliated Youth Leagues will con tribute to the book fund. The books will stay in each community long enough to give the members a fair chance to read them, then will "travel" on to the next. This district is also studying Journalism and is planning a contest for the best written ar ticle. Members must write one "imaginary" ar ticle first, before entering the real contest. Insurance Pointer No. 3— WATCH THE WARRANTY Many insurance policies contain the phrase "warranted by the assured that, etc., etc." Watch that little word, "warranted." If the policy holder does not comply with the warranty, the whole policy is void. For instance, fire insurance policies on private houses often contain the phrase, "Warranted by the assured that the within described building is occupied exclusively for dwelling purposes by not more than three families." If a building under such a policy has a fire and the company can prove that there was a store on the premises, they can deny liability and pay nothing. This sounds rather rough on the owner of the building, but the companies insist that they have no other defense against the man who wants to insure his store or apartment house at the low private dwelling rates. A monthly insurance paragraph, con tributed by Clusa Service, Inc., the League's insurance service for cooperators. The Cooperative Youth League of the North Central States, Superior, is engaged in as sembling a library of cooperative books, which will be loaned out to members over the ter ritory. News of the Northern States Cooperative League Attention is being given to the organizing of county federations of cooperatives, the object being to bring together all cooperatives, pro ducer as well as consumer, in a county for the purpose of encouraging and advancing educa tion in cooperation and to promote cooperative effort and unity in legislative and economic en deavor among farmers and workers. There are now four such county federations of coopera tives in Minnesota, viz.: Carlton, Becker, Kana- bec and Pine, the latter having been organized December 17, 1932. • The League is assisting in an attempt to get a new cooperative law enacted in Minnesota which, while preserving the fundamentals of consumers' cooperation, will at the same time make provision for the greatest latitude in the incorporating of both producers' and con sumers' cooperatives in accordance with the principles of true cooperation. At the present time there are practically two cooperative laws, one a Marketing Act, and the other a General Cooperative Law, neither of which is entirely satisfactory. A bill has been prepared to be presented to the legislature in January. This bill is the result of several conferences held with the Department of Agriculture, Dairy and Food, and representatives of both producers' and consumers' cooperatives. The bill embodies the essential features of a cooperative law which will not only meet present needs but at the same time permit of growth and expansion along genuine cooperative lines. • Representatives of the League attended the annual convention of the Farmers' Union Cen tral Exchange of St. Paul, December 15-16. The volume of business done by the Central Ex change for the fiscal year ending October 31, 1932, was approximately $1,750,000, while the preceding year it was only a little more than a million. The Exchange showed a net profit for the year of approximately $100,000. It has 26 retail branches and in addition there are 86 cooperative companies buying gasoline from the Exchange and 130 buying lubricating oil and grease. • The Midland Cooperative Oil Association held a cooperative oil school Jan. 11 to 14 in clusive, in Minneapolis. The program dealt with the practical features of business connected with gasoline, oils and tires, and also with the principles of cooperation generally and specif ically as applied to this particular line of busi- 38 COOPERATION ness. A. J. Hayes, editor of "The Cooperative Builder," spoke each of the first three days of the school on "Cooperative Principles and Practices." George W. Jacobson spoke on PRICES CUT! To make it easier for students of coopera tion to get study material, we have cut prices on all our Correspondence Courses in half. For example: Cooperative Bookkeeping, was $10 Now ......................... $5 Principles of Cooperation, was $10 Now ......................... $5 Organization & Administration, was $20 Now ........................ .$10 Special rates to Study Groups Send for particulars THE COOPERATIVE LEAGUE 167 West 12th St., New York, N. Y. FIRE INSURANCE ON YOUR FURNITURE SAFE-ECONOMICAL-COOPERATIVE WORKMEN'S FURNITURE FIRE INSURANCE SOCIETY 227 East 84th St., New York, N. Y. Member of The Cooperative League of the U. S. A. Under supervision of N. Y. State Insurance Department. The Cooperative Builder The official organ of Northern States Cooperative League Central States Cooperative League Central Cooperative Wholesale Midland Cooperative Oil Association An interesting and lively cooperative journal published semi-monthly at Superior, Wis. Subscription rate $1.00 per year. CENTRAL COOPERATIVE WHOLESALE Superior, Wis. Economic Basis for Cooperation" and "Co operation in our Territory—Its Possibilities." The directors of the Midland Cooperative Oil Association gave a banquet at the West Hotel to the officials, managers, and bulk and service salesmen of its constituent cooperatives. Joseph Gilbert, assistant secretary of the N. S. C. L. addressed this gathering on the subject: "What is Cooperative Business?" General Manager E. G. Cort took an active part throughout the school sessions with talks on various technical and business phases of the oil industry. • The Insurance Committee of the League has recommended to the Board of Directors that the League organize a life insurance company under the fraternal insurance laws of the state of Minnesota. e A question on the agenda at the last board meeting of the League was whether to en courage or discourage the formation of con sumers' cooperatives which are under the neces sity of depending for a market on concerns en gaged in business for private profit. It seemed to be the consensus of opinion among the Board members that such cooperatives, regardless of being organized as consumers' cooperatives, were in reality producers' cooperatives, and should hereafter be so regarded by the League. Such cooperatives should be admitted to mem bership in the League as fraternal, not as con stituent, members. e Many requests have come in during the past month for Secretary Alanne and Assistant Secretary Gilbert to address meetings, parties larly annual meetings of cooperative societies, which is an evidence that the importance of cooperative education is being realized more and more. e The annual meeting of the Union Mercantile Company of Isanti, Minn., was held on January llth. A financial report submitted to the share holders present showed sales of $29,349 in 1932, a reduction of nearly 24% as compared with 1931. In the latter year, sales dropped not less than 42%, as compared with 1930. Due to the efforts of the management and the board of directors, the gross margin realized for the year of 1932 increased 12.5% over that realized from considerably larger sales in 1931. Ex penses at the same time were reduced 17%. Still, due to comparatively large investments in the store building, fixtures, beanery equipment, etc., high overhead expenses made it impos sible for the organization to eliminate any more than 38% of the operating loss sustained in 1931. The present board of directors were re- elected. A. J. Peterson is president. Peter Hal- den, secretary and C. F. Dunder, manager. An educational meeting was held in the after noon at the Oxlip schoolhouse. Some 50-60 people attended this meeting. Joseph Gilbert, assistant secretary of the League, delivered the main address and Secretary Alanne spoke briefly. V. S. A. COOPERATION 39 Books CAPITALISM, COOPERATION, COM MUNISM, by Andrew J. Kress. Ransdell, Inc., Washington, D. C. 1932, $2.00. "Cooperation, then, is the middle ground be tween the class levelling of Socialism and the driving greed of Capitalism." This sentence printed in large capitals almost at the end of the volume may be considered the central theme of Dr. Kress' book. Dr. Kress points out the shortcomings of capitalism in failing to supply a living wage for its workers during a time when production was on the increase. He quotes the figures of Professors Warne and Patterson to show that while the per capita income in the U. S. be tween 1919 and 1928 increased one-third, the earnings of workers during the same period were augmented by only one-tenth; that while be tween 1919 and 1925 the physical output per worker increased 37%, his wages rose only 11%. "But the end is not yet," exclaims the author "and something should be done imme- dia.ely before the masses, in their misery fol low the false beacon of Communism in their search for a better opportunity." By far the best parts of the book are those devoted to the author's treatment of consumers cooperation. The material here may be divided into the history of the movement and the author's conception of it. Chapter II and ill are devoted almost exclusively to an historical sketch of the movement abroad, while chapter IV, the best in the entire volume, is set aside for a similar treatment of the movement in the United States. The information in these chap ters is good but necessarily brief and does not deviate from the paths beaten by others, notably Dr. Warbasse, Sonnichsen, the Webbs, etc. The volume is well written and contains use ful information. The admirable introduction by Dr. \Varbasse is an outstanding feature of the book. Edward M. Cohen THE PEOPLE'S YEAR BOOK, 1933. Published by the British Cooperative Press Agency. Price, through The League, in paper covers, $.75, cloth, $1.35. Even more informative and attractive than usual is the People's Year Book of 1933. If anyone doubts the superioty of cooperative over profit business, let him peruse this review of the progress of cooperation the world over. While capitalistic businesses in all lines and in all countries are bending under the force of the economic blizzard, even to the point of collapse, the cooperative movements among all people are not only weathering the storm but are actually making progress. But like moles bur rowing in the dark, the bulk of the world's statesmen, economists and captains of industry are blind to the sunshine of this fact In addition to the facts and statistics, this Year Book contains a collection of opinions by cooperative leaders, both of Britain and of other countries, indicating cooperative "eco nomic plans" for the future. Among the special writers are Sir Norman Angell, Leo Chiozza- Money and Sidney Webb. The book is replete with beautiful illustrations. The Canadian Cooperator Brantford, Ontario, Canada The organ ov the Canadian Coopera tive Movement, owned by and con ducted under the auspices of The Cooperative Union of Canada. Published monthly 75c per annum NEW ERA LIFE ASSOCIATION Affiliated with The Cooperative League of the U. S. A. All standard forms of Legal Reserve life insurance contracts written. We can insure you by mail without medical examination. Cooperators, patronize your own insurance society. For full particulars clip this coupon. New Era Life Association Grand Rapids, Midi. \Vithout obligation send me information concerning your different certificates: Name ________________________________________________ Address _________________.______________________ _______________________Age:__________ 60 COOPERATION STUDY CONSUMERS' COOPERATION The books and pamphlets listed below are available through The Cooperative League. Read them and pass them on to your friends HISTORICAL Per Copy Per 100 38. Consumers Cooperation in the United States (illus.). 1930.... .10 8.00 <9. Story of Toad Lane (By Stuart Chase) ...................... .06 4.00 TECHNICAL 4. How to Start and Run a Rochdale Cooperative Society .......... .25 15.00 6. Model By-Laws for a Rochdale Cooperative Society .......... .05 2.50 19. Credit Union Primer (By Ham and Robinson) .............. .50 51. Model Lease for Cooperative Apartment House ............ .10 MISCELLANEOUS It. Model Co-op State Law ........ .10 38. "When the Whistle Blew" (Story. by Bruce Calvert) .......... 06 57. How a Consumers' Cooperative - Differs from Ordinary Business .02 61. Buttons (League emblem). % inch diameter ............... .05 •3. Sign or Transparency of League Emblem. Green and gold, 8 in. diameter .................... .25 16.00 €7. Stock certificates, engraved, with League Emblem. Bound in books of 100, 200, or 250 «8. To Mothers ................... .02 70. Farmers' Cooperation, A Way Out: An address by L. S. Herron.. .05 72. "Little Lessons in Cooperation" 74. The Burden of Credit ......... .02 76. What is the Cooperative Store.. .OS 76. What Is Consumers' Cooperation .05 77. The Most Necessary Thing in Life ......................... .02 78. Are You Sure You Are Getting Your Money'8 Worth ........ .02 79. There Are Two Sides to Every Counter ...................... .02 80. Consumers', Credit, and Produc tive Societies, Bull. 631 of the Bureau of Labour Statistics.. .25 81. Cooperative Youth Songs ...... .25 82. What Cooperation means to a de pression-sick America ........ .03 .85 2.00 1.00 4.00 35 1.00 2.00 4. DO 1.00 1.00 1.00 2 00 "What Consumers' Cooperation Means to a Depression-Sick America" Try it on your depression-siok friend A new leaflet, mostly pictures 3 cents per copy, $2 per 100 We also recommend "What Is Consumers' Cooperation?" by Dr. J. P. Warbasse. A clear, concise definition. 5 cents per copy, $4 per 100 Order from The Cooperative League MONTHLY PUBLICATIONS Cooperation—(In bundle lots, $7.50 per hundred). Subscription, per year (foreign, $1.15).... $1.04 REVIEW OP INTERNATIONAL COOPERATION (Pub. by the I. C. A.) ........ Per Year. |1.60 BOOKS The following books are recommended as con taining the best discesslon of the model i Coopera tive Movement. They may be ordered through The League, postpaid as follows: Bergengren, R. F.: Credit Union, A Cooper ative Banking Book .................. Blanc, Elsie T.: Cooperativs Movement in Russia, 1924 ________ ____________ Brightwiil, L,. R.: Animal "Co-op" Book— For Children ........................ Chase and Schlink: Your Money's Worth, A Book for Consumers ................ Pianagan, J. A.: Wholesale Cooperation in Scotland, 1920 ........................ Gide, C.: Consumers' Cooperative Societies, American edition and notes, 1622, Cloth Hall, Prof. Fred: Handbook for Members of Cooperative Committees ............. Hoijoake: Rochdale Pioneers ............ HoListh, E. M-: Cooperation in India 1932.... Indian Cooperation, Children's story ...... Jessness. O. B.: Cooperative Marketing of Farm Products ....................... Kress, A J. :Capitalism, Cooperation, Com munism, 1932 ......................... Raivaaja Print—Fitchburg, Mass. Life A? We Have Known It Life stories of English guildswomen, telling what the Guild has done for them.. Madams, J. P : The Story Retold ......... Nicholson, Isa: Our Story ................ Odhe, Thorsttn: Finland, A Nation of Co- operators ............................. Oerne. Andres: Cooperative Ideals and Problems ............................. Owpn, Robert: Autobiography ........... Poisson, E.: The Cooperative Republic.... Potter, B.: Cooperative Movement In Great Britain ............................... Redfern, Percy: The Story of the C. W. S. Redfern, Percy: The Consumers' Place in Society, 1920 .......................... Smith-Gordon & Staples: Rural Recon struction in Ireland, 1918 ............ Smith-Gordon and O'Brien: Cooperation in Denmark ............................. Smith-Gordon and O'Brien: Cooperation in Many Lands, 1920 .................... Stolinsky, A.: The Cooperative Movement. (In Yiddish) ......................... Warbasse, J. P.: Cooperative Democracy, (1927,) ............................... Warbasse, J. P.: What Is Cooperation, 1927 Warne, C. E.: Consumers' Cooperative Move ment in Illinois ...................... Webb, B. and S.: The Consumers' Coopera tive Movement, 1921 .................. Webb, Catherine: Industrial Cooperation, 1917 .................................. Wooif, Leonard: Cooperation and the Fu ture of Industry ..................... Cooperation, Bound Volumes, 191B to- 1931 inclusive, each ....................... The People's Year Book, 19S2, English, paper .75, cloth Year Book of The Cooperative League, 1932 $1.50 1.50 .16 1.10 2.10 l.oO 2.50 1.10 3.75 .IB 8.10 2.00 1.25 .85 .25 1.51 1.35 .75 1.85 1.10 1.25 1.00 1.00 1.10 l.SO 1.00 1.50 .75 3.50 G.OO i.«e 1.65 1.25 1.35 .75 COOPERATION Organ of the Con- Movement in the ^ ^ sumers Cooperative ^h - /M United States / #fc/t ^%o ^d. Vol. XIX, No. 3 MARCH, 1933 Co-op Cleanliness Clinches Contract 10 cents Lawrence plant that Xvon city milk order r |THE city of Lawrence, Mass., had J- to settle the question: "Who shall supply the milk for the Ci-ty Hospital?" Bids were called for. Joe Salerno, man ager of the Workers Cooperative Union, decided that the co-op should be in this contest, and so he submitted a bid. It was 1 cent a quart above that of another dealer. "Hold on," the city fathers said, "price isn't the only consideration. Let us take a look at these plants." So they took an inspection tour. And when it came to cleanliness and high quality, the modern plant of the co operative won the day. Naturally, when the consumers co operate to supply their own babies with milk, they get MILK, not bacteria. The milk of the Workers Coopera tive Union is supplied by the Man chester Dairy System, a farmers' co operative. 42 COOPER ATION COO PERATBO N An organ to spread the knowledge of the Cooperative Movement, whereby the people, in voluntary association, produce and dis tribute for their own use the things they need. Published monthly by The Cooperative League of the U. S. A., 167 West 12th St., New York City.___________________ OSCAR COOLEY, Editor Contributing Editors George Halonen A. W. Warinner L. S. Herron Herman Liebman V. S. Alanne___________George Jacohson Entered as Second Class matter, December 19, 1917, at the Post Office at New York, N. T., un der the Act of March 3, 1879. Price $1.00 a year. Vol. XIX, No. 3 March 1933 More Members the Need The London Cooperative Society has more than tripled its membership since 1925. It now has about a half mil lion members, one-fourteenth of the entire population of the world's largest city. It seems that London is always having a membership campaign, but recently it had a special one of four weeks. The result was 20,583 new members. This doesn't just happen; it takes work, planned, systematic, constant and unremitting missionary work on the part of employees and sharehold ers. It costs money, too—you can't get something for nothing. But it means that cooperation in the city of London is a living, growing thing. Would that the same could be said of New York! Ho'tv many of our American socie ties are even scratching the surface of the possibilities for getting new mem bers? Who can name a single local so ciety which has gained as much as 500 members in the past year? Come, now, don't all speak at once. But the people have no money, you say. They can not afford to pay for shares. Fiddlesticks! Neither can I af ford to pay for my supper tonight but I shall sup nevertheless, and I may go to the movies afterwards, who knows? People are still spending money'—for the things they want. Haven't money? The working people of London I sup pose are wealthy, then. Can not afford to buy shares? Lower the price, then. You can not afford to have the shares of your cooperative society priced so high that the working people can not afford to buy them. No, that's not the reason. Laziness, inertia, lack of courage, lack of daring —those come nearer it. We're afraid to say "Come and join us" for feax someone will say "Mind your own business." We have created our little societies and we hug them tight like dolls for fear some big boy will see them and want to take them away from us. So we draw around us the cloak of monastic self-righteousness and wait patiently for the coming of the cooper ative commonwealth. But, some will say, we can not af ford during these times to spend money and effort on a membership campaign. It isn't practical. You can not afford not to. Your sales are falling off. You can not reduce your expense propor tionately. Consequently your net is dis appearing. You must boost those sales. That means more patrons and more members. Practical? New members are the lifeblood of your society. When a man is dying, is it practical to go out after a transfusion of new blood? Every society should budget a cer tain amount every month for canvas sing and getting new members. Quotas for employees should be set and re wards given for exceeding the quotas. '"New members' meetings" should be held frequently at which cooperation if explained and they are instructed to go out and get more new members. Especially should the women be in structed in what cooperation means and why they should give all their trade to the cooperative. A cooperative society never remains static; it is always either in growth or in decay. e A credit union is a type of coopera tive society in which the members produce as well as consume. When they deposit money, they are produc ing, and the thing they are producing is credit; and when they borrow, they are consuming credit. It is as though the members of a cooperative store so- COOPERATION 43 ciety grew and picked and canned the tomatoes which later they buy off the shelves. Psychologically, wouldn't it be a good thing if we could grow and can our own tomatoes? Just "consuming" is dull, uninspiring business. We want to produce, to create—don't you? To see things grow and take shape under our hands, and to feel that they are ours from start to finish. This strikes us as an advantage which the credit union has. It's mem bers can grow tomatoes to their heart's content, that is, they can save and de posit regularly, according to their means. They should be encouraged to do so and to get others to. Thus they will accumulate their own pool of co operative credit, which will be just as useful, even more so, as a whole ware house full of tomatoes. • Big Business in Trouble Industrial leaders are testifying to the superiority of small business over large business under depression condi tions. The following is a letter from an editor of a business magazine: "Big business is at a decided disad vantage in comparison with small busi ness in those fields where big business has been sufficiently well financed so that no material deflation has occur red in the capitalization of plant, ma chinery, etc., and where small business has been sufficiently harassed by poor business so that complete reorganiza tions have occurred in the capital structure and in the capitalization of plant and equipment on what amounts to a liquidation basis. In other words, with the prevailing buyer's markets, the large buyer has little or no advan tage over the small buyer and, hence, the small manufacturer whose capitali zation has been reduced to a depression minimum can operate on parallel costs as regards labor and materials, but at lower costs as regards overhead. Even those large companies with substantial cash reserves are finding that selling at a loss is not tending to eliminate competition, but on the contrary is tending to force reorganization on the part of smaller concerns, which reor ganizations are stiffening rather than decreasing the competition offered." o. c. • Time to Study Social Science Today the physical sciences com mand the attention of the world. The doings of the astronomers are front page news. Physicists and chemists are employed by the large corporations to conduct research programs costing thousands of dollars. We are all thrill ed by the discovery of a new star; we take pride in our civilization, that it can determine what makes an automO" bile engine knock, and how to stop it; and the successful inventor is re warded beyond all dream. But it is gradually becoming rec ognized that we have put too much emphasis on the physical side and too little on the social. It is a common say ing that "We have solved the problem of production, now we must solve the problem of distribution," and that "Another war will destroy our civiliza tion." These statements, together with the concern over the increase in men tal diseases, and the opposition to the movement of population from the farms and villages to the cities are all indi cations that we are beginning to rec ognize certain angles of the problem, if not the whole problem itself. To the forward-looking members of the younger generation then, we point out that the field in which they can be of the most service to society is that of the social sciences. To some of them who enter that field now, there will come the recognition that is now given to the Edisons, the Steinmetzes and the Einsteins. Cooperation is one of the most im portant applications of social science that has so far been put on a practical basis. Some of the youthful cooper- ators of today will be the country's leaders of tomorrow. C. Throop • The private grocery trade in Great Britain is 2j/£% unionized; the cooper ative movement 85%. 44 COOPERATION I I 1 5 O CO COOPERATION 45 Consumers' Cooperation in the United States By Oscar Cooley II The Cooperative League THE Cooperative League is the na tional federation of Consumers' Cooperative societies and associations in the U.S.A. It does not handle goods; it is purely educational and propa gandist in purpose. It is non-political, and non-sectarian. It is the focal point in the movement to establish produc tion for use, not for profit, through Consumers' Cooperation. The League is supported by 450 af filiated local cooperative societies. The members of these societies are largely farmers and industrial workers. The League also has individual members, dues $1 per year. Anyone, anywhere, who wishes to help and participate in this movement is invited to become a member. The President of the League is Dr. J. P. Warbasse of Brooklyn, N. Y. Dr. Warbasse founded the League in 1915 and has been its President ever since. He is internationally known as an authority on Cooperation. The Gen eral Secretary is Oscar Cooley. Functions The League publishes this magazine. It publishes practical pamphlets, such as "How to Start and Run a Rochdale Cooperative Store"; small leaflets, such as "What Consumers' Cooperation Means to a Depression-sick America"; and other propaoanda material such as posters, package stuffers, a yearly calendar, etc. It distributes books on Cooperation, such as Dr. Warbasse's "Cooperative Democracy." The League holds a Congress every two years. Each district has an annual convention. One-week Institutes for students of Cooperation are held in each district every summer. A 4- weeks' summer school is held in the Northern States district. A correspon dence school is conducted. A Speakers' Bureau is maintained. Study groups are encouraged and assisted. The Accounting Bureau of the League audits the books of cooperative societies. An insurance department, Clusa Service, Inc., advises on insur ance problems and fills insurance re quirements for both societies and indi viduals. Detailed information on any of these services, or on any question relating to Consumers' Cooperation, may be ob tained from the main office, 167 West 12th St., New York. The League embraces three dis tricts: the Eastern States district con sisting of New England, New York, Pennsylvania and New Jersey, office, 167 West 12th St., New York, N. Y.; the Central States district, consisting of Illinois, Indiana, and Ohio, Secreta ry, A. W. Warinner, 1410 No. Main St., Bloomington, 111.; and the North ern States district, consisting of Min nesota, Wisconsin, Michigan and the Dakotas, Secretary, V. S. Alanne, 2100 Washington Ave., N., Minneapolis, Minn. These districts are largely au tonomous. Both societies and indi viduals are invited to join the League through their respective districts. In addition, there are societies in non-districted territory, which are affiliated directly with the national League. When these become numerous in any one section, a new district league is formed. The district leagues, being local, maintain more intimate contact with societies and thus help to draw the movement together in unity. The work of each district league is of interest. Northern States Cooperative League Organized in March 1922, this league had on June 30, 1932, a total of 78 constituent (dues paying) societies, consisting of 65 store societies, 4 re gional oil associations, 3 mutual banks and credit societies, 2 wholesales, 2 hotels and boarding houses, one con sumers' creamery and one life insur ance society. 46 COOPERATION The 2 wholesales are the Central Cooperative Wholesale of Superior, Wis., and the Midland Cooperative Oil Association of Minneapolis, Minn., which had respectively, 101 and 42 af filiated associations of their own. Fif ty-five of the affiliated associations of the Central Wholesale paid constituent dues to the League thru their Whole sale and nine were directly affiliated. This league also has fraternal mem bers, consisting of organizations in sympathy and accord with its aims, such as labor unions, women's cooper ative guilds, producers' cooperatives, etc., to the number of 14; also six life members who have each paid $30. During the year 1932, a total of 429 individuals paid one dollar as indi vidual membership dues. The aggre gate number of members or sharehold ers belonging to the affiliated associa tions in this district is approximately 60,000. The N. S. C. L. has held 11 annual conventions of its own; has conducted six sessions of a short-term training school, covering a period of 39 weeks, with a total of nearly 1,600 hours of class work done and with 156 men and women trained to serve the cause of cooperation. It also conducted a sum mer school in 1932, with 39 students in attendance; conducts an auditing de partment with five auditors employed; has organized an insurance department; has issued four yearbooks (1925-28) under its own auspices, and two year books (1930-32) under the auspices of The Cooperative League of U. S. A. The executive secretary and an as sistant secretary devote their entire time to field work, lecturing, giving advice and assistance to cooperatives, and distributing literature. "The Cooperative Builder," pub lished semi-monthly by the Central Co operative Wholesale at Superior, Wis., is the official publication of this league. The Wholesale also publishes a week ly paper in the Finnish language, a large number of its membership being natives of Finland. A brief picture of some of the out standing member organizations of the N. S. C. L. is in order. Central Cooperative Wholesale This is one of the largest, most stable and most progressive cooperative or ganizations in the country. It is a con servatively run business and at the same time a revolutionary social insti tution. Its leaders are imbued with the ideal of nothing less than the complete Cooperative Commonwealth, but they know that it will not come in their day. "Some one must lay the foundations," they say. "Let us do it." And so they are. The Wholesale, located in Superior, Wis., has 101 affiliated societies, in northern Minnesota, Wisconsin and Michigan, with a total of over 25,000 cooperators. It is also patronized by a score or more of non-member societies. Its sales in 1932 were $1,310,149.08. Groceries, feeds and general merchan dise accounted for $1,110,444.28, cloth ing $97,505.45 and bakery products $67,514.75. Net gain was $9,090.57. Founded in 1917 as the Cooperative Central Exchange, with 15 member societies, the Wholesale has made steady progress, helping to build up the local societies which in turn gave the Wholesale their trade and helped it to grow. Its high-water mark in dol lar sales was reached in 1930, when its total trade was $1,767,760.33. Since, in two years of depression and falling prices, the dollar volume has fallen ap preciably, but the tonnage has actually increased. Educational work has always been a cardinal policy with the Wholesale. "We 'sell coffee with cooperation and cooperation with coffee,'" they say. The results in growth prove it. Two papers, one in English and one in Fin nish, are published. A full-time educa tional director is employed. Women's Guilds and Youth Leagues are fos tered. Whenever a national or district congress is held, the representatives of the Wholesale are found in the front rank. About 90% of the cooperators in this district are farmers. Others are miners and miscellaneous workers, all hard hit by depression. But the Wholesale announces that in 1933 it is out for $1,500,000 sales. (To be continued) COOPERATION 47 The Story of the Community Hospital of Elk City, Oklahoma By Dr. M. Shadid ELK CITY, Oklahoma, where we promoted the first cooperative hospital in the United States, is a town of six thousand people, surrounded by cotton farmers and having a trade ter ritory of about twenty square miles. In the town of Elk City there are ten doctors, three chiropractors, five den tists, and two general hospitals besides our cooperative community hospital. I have lived in this county for twen ty years. Three years ago, when I con sidered a cooperative hospital, I had been operating a small institution of eight beds for a period of four years. In 1927 I made a trip to Europe and the Mediterranean countries with a view to locating in my native land, Syria, and devoting myself to free med ical and surgical work to my country men regardless of any possible emolu ment to myself. On my return to the United States I decided to • promote a cooperative hospital and demonstrate that the peo ple can build their hospital and hire their doctors and surgeons on a salary basis. I approached the doctors who had private hospitals in Elk City with a view to getting them interested in the project and having the cooperative as sociation buy their institutions as I felt that the success of a cooperative hos pital should be achieved without loss to others if possible and furthermore I figured that it would be advantageous to the institution to eliminate the com petition of nrofit business. Both doctors who were approached turned the proposition down flat and I therefore proceeded with the project single handed. I called a meetinrr of the leaders of the cooperative movement in the coun ty and laid my plans before them. Upon their approval we formed an organiza tion commitee, capitalized for $100,000 and began to sell shares of stock for $50 each. In the literature we sent out we stated that immediately after a per son bought stock he would be eligible to have all his medical and surgical work discounted fifty per cent and that in no case would the surgeon charge him more than $50 for any surgical operation. We also stated that as soon as the hospital was built and the num ber of stockholders justified it that we would do all their medical and surgical work for $50 a year less hospital fees or less the cost of hospitalization which was to be at the usual rates. The discount idea was a mistake. The reason we adopted it was because people hesitated to subscribe for a share of stock hoping that a hospital might be built and that they might be benefited thereby; they wanted some immediate benefits, even while we were in the stage of organization. The dis count plan was a mistake because pri vate practitioners would try to meet the competition and leave the impres sion with the cooperators that they were not receiving any discounts on their work at the cooperative hospital. Indeed private practice in many in stances has met this competition in our community to our detriment. Neither was it practicable to charge the usual rates for medical and surgical work and give back a patronage divi dend every six or twelve months, for the people are poor and want benefits now. Therefore the only feasible plan was to charge a premium once a year for all medical and surgical work for the family. That we are now doing, charging $25 a year for all work for the family including examinations, treatments, and surgical operations less the cost of hospital care and home visits. The majority of our members still use us on the discount basis, while the minority pay the premium of $25 a year for their work. 48 COOPERATION May Reduce to $2.50 a Day For hospital care we used to charge $5 a day, anaesthetics and operating room fee extra. Now we have reduced same to $3.50 per day, and we believe the time will come when the increase in membership will justify us in re ducing still further to $2.50 a day. When I started to promote this hos pital I had no other doctor with me but promoted it among my own patients who believed in cooperation and they in turn promoted it among their friends and neighbors. This was a mistake al so for no cooperative hospital should ever be started except with a com petent staff of men of at least five or six covering the main branches of medicine and surgery. The chief phy sician or surgeon in charge of the professional work should be thorough ly sold on cooperation. He must be a good man, as well as a good surgeon or physician, as he must inspire both lay and professional members of the or ganization. I can not stress this too emphatically. We sold shares of stock for $10 cash and a $40 note and have in our possesion $60,000 in notes. We built the hospial with borrowed money thinking that we would collect in the fall of the year when cotton is ginned, as is the usual custom in the South. The depression came and money was hard to get and although the hospital has been operating with a little margin of profit we still owe the money we borrowed and are paying interest on it. Moral: never build a cooperative insti tution on credit. We had trouble getting doctors to stay with us, for two reasons. First, all the doctors, surgeons, dentists and druggists have united to overthrow the cooperative hospital because they sus pect that it will ruin their business. We offered to do all work for our members for $25 a year. The doctors could readily see that if the cooperative hos pital were a success, they would no longer obtain a $150 fee for an appen dix operation, and similar fees. Secret meetings were held, even with mem bers of the State Board of Medical Ex aminers. Charges were preferred against us for "steerage," and but for the Governor of the state and John Simpson, National President of the Farmers Union, they would have easily succeeded. Doctors whom we hired to work for what they could get from our members on the discount basis would not shoulder the professional ostracism attached to the work. Others would sell out for a consideration and leave town. It certainly has been an uphill fight and the medical profession is living up to its history in persecuting every new idea or discovery. For this reason I think cooperative hospitals should not be built in small communities but in larger cities until the practice becomes more popular, after which it may be introduced into smaller communities without so much strife. Secondly, many doctors who are looking for a location are at fault with their environment and have therefore been a failure elsewhere. Many of them are morphine habitues. One such com mitted suicide in our operating room about mid-night after having been here on probation less than a week. At the present time we have on our staff two physicians, one surgeon, and one dentist. Dental work is done for our members at half price. The doctors get what they can from the members and do their work at 50% discount. I re peat this in order to condemn it. For one can readily see that the doctors can tcike advantage of such practice. Com peting doctors can caoitalize the idea and it is impossible for the members to judge as to whether they are getting a discount on their work or not. There fore it is our intention as soon as pos sible to reorganize the service strictly on a premium basis, getting the mem bers to pay a small sum each year, per haps $15, for their medical and sur gical work, and making no charges ex cept 25 to 50 cents for medicine and $3 for an X-ray film. This has not been done before because the Board of Di rectors has not been able to get enouqh of members to pay $25 a year to Concluded on page 57 COOPERATION 49 How They Did It in Ainsworth By C. McCarthy 'T'HIS is the ordinary story of an J- average cooperative oil associa tion in Nebraska. It is the more im portant for that reason. Extraordinary accomplishment may excite wonder and amazement but ordinary success excites the desire to emulate. What an ordinary group can do in a simple un derstanding way, other groups can do also. In 1930 the farmers about Ains worth, Brown County, held several meetings for the purpose of organizing a cooperative oil association. Subscrip tions for shares were solicited but they were unable to raise sufficient capital to make a start. In April 1931 the Board of Directors annealed to the State Exchange of Omaha to put in a bulk plant to be operated by the Exchange so as not to disappoint the hopes of the loyal folks who had done their best and whose efforts seemed likely to end in failure. We submitted a plan to them which was approved by their shareholders, by which they were to turn over to the State Exchange what cash they had on hand ($1250) and the Exchange agreed to put in bulk tanks and equip ment and keep them supplied with gas oline, kerosene and lube oils, all to be paid for out of sales. They have main tained their local organization with a Board of Directors who look after the business and property of the Associa tion and hire the drivers for the truck tanks. The drivers report directly to the State Exchange which controls their bank account, keeps the books, makes profit and loss statements as often as desired, makes the annual re port and files income tax report and claim for exemption. The cost of this service for 1932 was $75 and $15 of that sum was for work on accounts re ceivable—always an expensive luxury in a cooperative. The contract between the Associa tion and the State Exchange stipulated that we were to turn the business over to them when the State Exchange ac count was paid. When we offered to do so the Board wanted to know if we couldn't go right along as we were. The plan seemed so thoroughly prac tical that we were "lad to continue the experiment. Here are the results: Auditor Mc- Pherson commenting on the report for 1932 says, "Your Association is en tirely free from debt. The Farmers Union State Exchange account is paid in full. The report shows that after paying interest on capital stock, setting up a reserve- for losses and reserves for depreciation on equipment, your Asso ciation has a balance of $2754.69 avail able for patronage dividends on 1932 business. This will enable you to pay a patronage dividend of \2V-% for the year." The 1931 patronage dividend was $1049.06, making a total of $3803.75 paid or credited on shares. This sum is almost twice the total cash put in by the shareholders, $1940. Patronage dividends are set up for shareholders and non-shareholders alike. When the accumulated dividend of a non-shareholder equals the value of a share, a share is issued if the pa tron is eligible. Shareholders of record totaled 127 at the close of 1932. Of this number 57 became shareholders through the 1931 patronage dividend and many more will be added for 1932. The Association now owns a half block of ground which cost them $500, two bulk tanks with full equipment, two truck tanks, inventory fully paid for and no debts after nineteen months' operation. Their nresent assets, fully depreciated, total $7052.81. The State Exchange helped, of course. We have helped many other associations under similar circum stances. That's one of the many ad vantages in having a strong central Concluded on page 55 50 COOPERATION News and Comment They Seem to Favor Self-Help Through Cooperation \Vho said capitalist papers would not print cooperative news? On the front page of no less conservative a paper than the Chicago Journal of Com merce we find a highly complimentary article on the Farmers Union of Oma ha. "During all this talk about farms and farmers going to pot," says the writer, T. R. Porter, "a dirt farmers' cooperative organization out here in Nebraska has gone right along making money for its farmer-stockholders and farmer-customers and doing business on such a tremendous scale as to stand second only to the Union Pacific Rail road among all Nebraska business con cerns in volume of business." Then after reciting facts and figures he ends with: "One lesson the Nebraska farmers have learned through this cooperative establishment is this: If the farmer is going to get out of his present predica ment, he will do it by his own efforts. He has learned that laws to fix prices may avail him as temporary expedients, but that permanent prosperity for the farmer will comfe through the intelli gence of the farmer himself and through his own work and efforts." Farmers' 'Wholesale Increases Turnover The Farmers Union Central Ex change of St. Paul reports total sales in 1932 of $1,678,345.64. The largest items are gasoline and kerosene, oils and greases, twine, and feeds: 817 more cars of gasoline and kerosene were handled in 1932 than in 1931. The in^ crease in lube oil sales was 258,991 gallons. Net income in 1932 was $10Q,j 504. Of this $76,490.17 was accounted for by 25 branch stations (19 in Wis consin and 6 in No. Dakota) which are run by the Exchange. In addition to distribution through these branches, the Exchange acts as a wholesale for nearly 100 independent oil associa tions. It began operations in 1928. Among the resolutions passed at the annual meeting was one calling on the states of Wisconsin, Minnesota, No. Dakota and Montana to teach coop eration in the public school systems and State Colleges of Agriculture. It is al ready taught to some extent in the pub lic schools of So. Dakota due to the efforts of the Farmers Union in that state. Another resolution put this farmers' organization on record as in favor of labor unionism and instructed the man agement "to purchase Union-made products whenever advisable." • Running a Meat Market Good display, wide variety of prod ucts, and reputation for fresh, pal atable meats, were the three important factors common to every successful meat market of the 356 studied in a recent survey. Among the 356 mer chants there were some whose volume and profits had steadily increased in spite of unfavorable conditions and in creased competition. The important factors common to these successful stores are outlined as follows: (1) Every successful store had an excellent display of its prod ucts, (2) carried a wide variety of meat products, and (3) spared no ef fort to maintain a reputation for fresh, palatable meats. The survey presents information on means of reducing costs. Gross margin in the average meat establishment stu died in this survey was approximately 23.6% of net sales. The expenses of a typical meat market, averaging 20.9% of sales, are reported to be divided as follows: Salaries and wages 62%, delivery 12.8%; rent 8.5%; refrigera tion 5.3%; wrapping and laundry 3.5%; depreciation and bad debts 2.1%; light and power 1.5%; and tax es, insurance, interest and miscellane ous expense 4.3%. This is, of course, COOPERATION 51 exclusive of cost of merchandise. This typical establishment made a net profit of 2.5%. • Cooperative House Cuts Costs, But Not Wages Who said that cooperative business cannot compete with profit business in efficiency? The Amalgamated Cooper ative Houses in The Bronx, Ne\v York, in the last year have cut oper ating costs by 35%, according to Man ager A. E. Kazan, without cutting wages: 85% of the tenants are wage- earners. • Another Cooperative Movie A movie film showing what coopera tion has accomplished in Sweden has been received by the Educational Com mittee of the Franklin Cooperative Creamery Association, Minneapolis, Titles in English are being written and the film will soon be ready for circula tion. The first part of the film presents some of the beautiful scenery of Swe den in colors. Then the picture takes you on a trip through the Swedish co operative stores, bakeries, butcher shops, coffee, roasteries, the Whole sale, and cooperative factories such as the up-to-date Tre Kroner mill at Stockholm and Tre Lejon mill at Gothenburg, the margarine factory, rubber tire, boot and shoe factories, and the latest to be erected, the Luma electric lamp factory, operated jointly by the cooperators of Sweden, Nor way, Finland and Denmark. The all- year cooperative school at Saltsjoba- den is also visited. The film presents a striking .picture of what is possible through Cooperation. If your society would like to borrow this film, write the Cooperative League or the Franklin direct. The cost, if any, we are advised will be nominal and can easily be met by a small admission charge. • Successful Year at Maynard The financial report of the United Cooperative Society of Maynard shows another society that is holding 4 the fort and carrying on the work started by our Rochdale forebears. Total sales for 1932 are $245,256.69, which is approximately $7000 less than during 1931. However, since Irving Fisher's Statistical Bureau shows that current prices in 1932 were 13.7% lower than in 1931, the actual volume of business increased 10%. Net business gain for the year was $9,023.96 which will be distributed in the following manner: $7,357.57 will be rebated to customers of the society at the rate of 3% on purchases. The sum of $500 will be utilized for the re demption of common stock. $500 will be devoted to charitable purposes for needy children in our schools, as a milk fund, and also to members of our society who, due to physical and so cial reasons are unable to provide the necessities of life for themselves. To show that this society is interested in developing the cooperative movement, $500 was apportioned for educational purposes. With an increased interest in the cooperative movement in this locality we can safely conjecture continued success for the United Cooperative So ciety of Meynard. Chas. Manty • Convention Dates The seventh annual congress of the Central States Cooperative League will be held in Waukegan and North Chi cago, 111., April 23-24 at the invitation- of the Cooperative Trading Company of Waukegan and the Waukegan-No. Chicago Cooperative Association. Upon the invitation of the Workers Cooperative Union of Lawrence, Mass., the 1933 convention of the Eastern States Cooperative League will be held in Lawrence, Mass., some time in May. • International Trade The export department of the Eng lish C. W. S. has sent 50 tons of grass and vegetable seed to Lietukis, the co operative wholesale society of Lithua nia. 52 COOPERATION How to Spread Cooperation—Methods Any Society Can Follow /CONSUMERS' COOPERATION ^-^ is for all. It excludes no one; in fact it tries to include everyone, for everyone is a consumer, and can bene fit himself and everyone else by co operating as a consumer. The larger the society, the greater the buying power, and so the greater the advantage to all present members of the society, and to all who may be come members. Consequently, our co operative societies should progress as rapidly as possible toward the ideal of having as members all the con sumers of the community. The aim of our propaganda then is: Every Consumer a Cooperator. In America this all-inclusive char acter of Cooperative societies has not been clearly evident. In many commu nities the public has gained the impres sion that the cooperative society is restricted to the members of one na tionality, or of one political belief. This totally wrong impression has without doubt impeded the progress of co operation in our country to an enor mous extent. We must eradicate this impression; we must make people see: that cooperation is universal. This should be the first concern of all of ux as propagandists. First, what are the available me diums of propaganda? Newspapers How to get publicity in local news" papers. First, is such publicity worth while? Yes, because the local paper, usually, more than any other medium is read by all the community. Publicity therein keeps the cooperative con- stantly before the community. It be comes apparent that this is not simply "another store" but is a social institu tion, somewhat like the Grange, the church and the school. This is im portant, because it shows that the co operative does not have the commer cial object of other stores, that is, of making profits. Appoint one of your number as Press Correspondent. It should be his (or her) duty to provide all local papers, and papers in nearby cities which cir culate within your town, with write- ups. All meetings, elections and speeches, as well as athletic contests, picnics and other social events should be covered. Financial reports of the society may contain news facts. Sometimes if news is lacking it can be definitely "planned." For example, if a coming meeting or picnic does not promise any "good copy," get a prom inent citizen of the town, such as a minister, lawyer, school superintend ent, to speak. Make him your head- liner. If he will speak on cooperation, so much the better, but if not, add to your story something about the aims of cooperation, relating it if possible to his talk. Add also the news of your so ciety, Youth Club, etc. Alone it might not get into your paper, but dished up with the headliner, it may. This might be called the Big Name Method. On another occasion you may plan a news story by getting your speaker to make a certain statement which will be striking enough to give you ci "lead." For example: "The consumers' cooperatives of Great Britain have in creased, rather than laid off, employ ees during the depression," was the statement of John Jones, president of the Bingville Cooperative Youth Club, who spoke at the combined meeting of the Youth Club and Women's Guild, last night in Cooperative Hall. "Per haps the cooperative movement will yet show the world how to banish un- employment," was Mr. Jones' opinion, etc., etc. This fact alone, or John Jones alone, might not "make" the Bingville Bugle, but together they may. The fact in striking, and the event of Jones' say-- COOPERATION 53 ing it in public meeting, gives the editor an excuse for publishing it. Often an editor will not use a complete feature story, but if the same material can be put in the mouth of a speaker, he will use it as a report of the speech. In contrast to the Big Name Method, this may be called the Big Noise Method, Put them together and you may be pretty sure of making the front page. Further it is the function of the PresH Correspondent to promote good rela tions with the press. Make friends with the editor. Don't assume that he is "agin" the co-op. Some editors still have the interests of their readers at heart, and if you can show him that the co-op membership constitutes a goodly number of his readers, he may be in clined to give them news that they want to read, that is, news about their own organization. Also, he needs copy. There is not much "hot" copy in the average town. The local newspaper editor is often tempted to use the copy that is at hand. Therefore, make it your business to see that co-op copy is at hand. Have it neatly typewritten, double-spaced. Put the most newsy fact in the first paragraph. Mention all the names of local people you can. Make it brief and snappy. Study As sociated Press stories for style. Know when the paper "closes" and have your copy in on time. Furnish pictures when possible, as of speakers, picnics, parades, etc.; the editor likes 'em and so does the public. Some will say that the newspapers, being controlled by capitalist adver tisers, will print no favorable publicity about the co-op. Let's not be too sure until we have tried thoroughly. Nor man Thomas certainly is not a capital ist, but look at the amount of news paper space he got during the last presidential campaign! When you are giving a dance or program, a small ad in the paper may be money well spent. It shows the pub lic that you really want them to come, and it doesn't hurt your relations with the editor. This brings us to the subject of paid advertising, which we will take up in a future article. The "Spirit of Cooperation' FIRST PRIZE Cooperation is Strong in a "One- Horse Town" Esther Lilley, Herman, Mich. WHEN cooperation is established in small communities, it is based on such firm, solid foundations that the most damaging efforts to tear it down prove failures. In spite of blows and set-backs, cooperation stands in the center as big and strong as you please, with great possibilities for advance ment in the future. Cooperation in one such "one-horse town" bought out .a store and hall. The community's entire interest was given to the success of those establish ments. There being no other suitable person for manager, a former private store owner was appointed. The store Prize Winners Announced We print herewith the first of the prize essays in our contest for the best ex ample of the "spirit of cooperation." The first prize, won by Esther Lilley, was $10 in cash; the second, won by Edmund Seidel, was $5. These were awarded by the Edu cational Committee of the Eastern States Cooperative League. Four third prizes, each consisting of a year's subscription to COOPERATION, were awarded to Violet F. Holloway of Long Island City, N. Y., Mrs. Gust C. Albrecht of New Ulm, Minn., Mrs. Alex ander M. Cordiner of Minneapolis and Arthur Oman of Two Harbors, Minn. gained headway and cooperative edu cational work was conducted. Later the manager was elected to a county office, which necessitated a new man ager. Cooperation grew stronger every day, but evidently not sufficiently be cause a split came among its members. 54 COOPERATION dividing the consumers into two groups as a result of disagreement in the ideas of bettering the condition of the working class. The true cooper- ators could not be affected in such a manner as to discard their own organi zation, but those who disregarded co operation put up a desperate fight against it. A storm such as this would naturally do great harm in the already small group of consumers. The sales were sadly affected but cooperators put up a courageous fight also, remain ing resolute, not wincing and feeling beaten. This alone did not cause the downward grade, but the world-wide depression set in, which cut the con sumer's buying power to a very low level. Time flew past and rumors were heard of the former manager being in financial trouble, his term of office having expired. The present manager was retiring. Who was again given management of the store but the for mer manager! It later proved to be the cooperators' worst error, for during his absence, in serving capitalism his idea of privately owning a store had grown, making him no longer a suitable person for cooperative work. The store had begun its downward grade, mys terious robberies occurred, and when finally the directors found out about the entangled affairs, the most mys terious event occurred. The building including the store and hall was found in ashes. This was a bad blow but co- operators didn't wince, they made a temporary store of the warehouse which was later made into a perma nent one. They go on in spite of other set-backs, of which one is the privately owned store of the former manager, about three hundred feet away. An other hard blow later was a loss of money in a bank failure. Such is cooperation! So deep-rooted and firm, and a "one-horse town" can prove it in its own simple way. What Does Cooperation Mean to Women? Won't some of our women cooper ators answer that question? Meanwhile the Editor makes bold to offer a few remarks on the subject. IT seems that women, especially housewives, should be the most natural cooperators, for their work al ready is "production for use, not for profit." Whether cooking a meal, darn ing a basket of socks, making beds, or doing the washing—we defy the clev erest housewife to make a profit at these things. Think of the millions of hours of labor performed daily by women in the home, and every hour of it based on the use-philosophy. We say that there are some 3000 consumers' cooperative societies in our country. Rubbish! there are at least 29,980,146 (total number of families in U. S.)—• and each one has a woman manager. Men may boss the factories and production plants, but in the "con sumption plants," the women are in charge. Approachin^ your economics from the consumer end, as we cooper ators do, you encounter woman first, governing the quality of what comes onto the table, making the house clean and decent to live in, in other words working in the service of Husband Consumer and all the Little Con sumers. Who shall say that woman does not deserve considerable credit for having organized her phase of pro duction so thoroughly on the service basis? Alas, that's more than man has done. But women do more than cook and sew. They select and buy the materials for cooking and sewing. Over 80% of total retail purchasing is done by wom en. Here is a most important act of production, and it too is "production for use, not for profit." For the house wife buys her groceries with the aim of getting good groceries, the kind her family of consumers likes, and at a fair price. Well, isn't that about what the manager of a cooperative society does? We said something about every house- COOPERATION 55 wife being manager of a cooperative. "Good groceries, at a fair price." That's what the housewife goes out to buy, and that's what the cooperative store manager goes out to buy, but, dear me, that is not what the private retailer goes out to buy. He goes out to buy one thing: Groceries that he can resell at a profit. Does it matter to him that his ketchup contains benzoate of soda? Not particularly. Does it matter that his coffee is half chicory? No, not so long as he can keep his customers thinking they are getting a bargain. To insure his profit, he is not above short- weighting a customer upon occasion- Housewives are trusting and they rare ly reweigh their purchases; they just can't be bothered. A manager of a certain cooperative store tells us that he ran out of turkeys one day and went across the street to procure one from a chain store. When he came to weigh it for his own cus tomer he found that he had been short- weighted over half a pound. In another case a chain retailer ad vertised phenomenally low prices on a certain brand of packaged cheese in a round flat box. These boxes were dis played in the window, face up, in such a way that the shopper did not observe how shallow the box was. In reality it was a half inch shallower than the usual box of this brand of cheese. Those Alluring Ads Why does the grocer down on the corner carry X brand of coffee? Is it because he has tested several different brands and found X brand to be the best? No, it is more likely because the X salesman came in one day and showed him a great portfolio of ad vertising for X coffee which was about to appear in The Saturday Evening Post, and said, "See what a lot of money we are spending to advertise X coffee. You want to be ready when the demand comes. How about a dozen cases, one case free in a dozen to in troduce the line?" Down goes the gro cer's name on the dotted line. The cof fee comes but the demand doesn't. He has to get rid of it somehow, and so the next woman who asks for coffee with out stating what kind gets X coffee. It isn't worth the money, she pays; it can't be, too much of her money goes to pay not for coffee but for adver tising. Most advertising is done to impress, not the housewife, whom the average advertiser knows has "got on" to his pretty pictures, but the retailer. Cases have been known where fine portfolios of color spreads have been made up and carried around by salesmen as bait to get orders and then never run in any magazine at all! These are a few of the nets thrown out to catch the purchaser's dollar. How long will the housewives of America continue to depend upon re tailers who care not a whit for good groceries but only for profits? For th,e sake of her children wouldn't any housewife and mother feel safer to trade with a cooperative store in which she or her husband owns a share and which she knows is run in the con sumer's interest? And wouldn't she feel even safer to know that her gro ceries were processed and packed in cooperative factories also run in the consumer's interest? For the motive in these cooperative institutions is pre cisely the same motive which she em ploys in the running of her home. How They Did It In Ainsworth Concluded from page 49 wholesale. What these Brown County farmers have done any community anywhere may do if they have a fair understanding of cooperative principles and the courage to follow through. Why should farmers (and the same reasoning applies to town and city folks) continue to pay tribute to some one to run their business for them when they can, if they will, run their own business cooperatively and save the earnings for themselves. One by one the outposts of capital ism are taken over by cooperators. We build as slowly or as rapidly as cooper ative knowledge spreads among our people. When cooperative understand ing becomes universal our fight against capitalism will have been won. 56 C O O P E R A TI O N Cooperative Youth Chicago Club Gets New Members Our Junior Cooperator's Club held its annual meeting January 25th. The meeting lasted till late at night because of the elections, which probably saw more members elected to office and to the various committees than ever before. The most noteworthy thing about the meeting besides the results of the voting was that 12 new members were brought into our club and that many of these are now on some commit tee. Our officers are as follows: Joseph Schubert, President; John May, Vice-President; Sylvia Osterlik, Recording Secretary; Georgiana Hlou- sek, Corresponding Secertary; Anton Drabik, Financial Secretarv; Mildred Kocian, Treasurer. We feel sure that these officers, many of whom have been re-elected, will fullfill the tasks that each of their offices present in a conscientious manner. We wish to bid them good luck and promise them our cooperation. Our Senior Society held its annual meeting January 29th, where quite a bit of time was devoted to discussing the relief the county furnishes the unemployed. Our Children's Club finally made a decisive step toward organizing itself definitely. Feb ruary 12th they held elections of officers. We found a place to borrow films, free of charge, so we will do our bit to make their meetings interesting. The Study Class decided to change its policy of study. Instead of using the League's course as it had in the past, it will now operate as an open discussion circle. Current events in the "Builder" and "Cooperation" and any other timely articles of interest will be discussed. We should like to hear from other coopera tive youth clubs or cooperative groups who would care to exchange experiences with us. Address Frank Pesek, 3028 So. Avers Ave., Chicago, 111. • Success in Cleveland The cooperative supper and dance, Novem ber 24th, sponsored by the Cooperative Youth League and helped by the Women's Guild, was surely a surprise to us. This was held at the Slovenian Hall on Waterloo Road and 35 cents admission was charged. Because of the depression, we were rather pessimistic about sponsoring an affair like this, but we surely would have made a big mistake if we had cancelled it. The dance floor and chairs for supper were filled with more guests than could be accommodated. The supper tables were served about five times and we had ex pected only two servings. We had a little over 400 guests and a profit of $112.50 resulted. We also had three prize waltzes. The prizes as follows were donated by one of the flour salesmen of our store: 1st prize, 100 Ib. Aristos flour; 2nd, 75 Ib. Aristos flour; 3rd, 50 Ib. Aris tos flour. The Cooperative Youth League was willing to divide the profits with the Women's Guild for helping us. But, through their wonderful cooperation, they gave the profits all to us, so we could build up our empty treasury. The Board of Directors has also helped us by do nating $25 when we organized our Youth League. This we needed to start our corres pondence course from New York and to pur chase books. The Ladies' Guild is going to sponsor a co operative banquet similar to our cooperative supper and dance, charging 40 cents admission. They will hold this Saturday night, February 25th, in the Slovenian Home near our new store opened recently in Euclid Village. The Cooperative Youth League will help them and we hope they obtain the same results we did. We haven't planned or held any public enter tainments since our dance which I have just reported, but we have held a few social enter tainments after our educational meetings. These socials were successful in increasing the at tendance at our meetings, and also brought a few new members. Mamie A. Bokal • Station CYL Hello everybody! This is Hubbardston broad casting. Everything is going along smoothly here. Our dramatic group seems to be the most active part of our club during these cold win ter months. We came in third in the Inter- Club Play Contest at Fitchburg. The 16th of this month we will show a one-act play for the Saima Society in Fitchburg, and in April we will be one of the three clubs to give a one-act play in Finnish in either Fitchburg or Maynard, the proceeds to go to the Massachusetts Youth League. Our library has been enriched by a dozen books. Six of them are a present from the Eastern States Cooperative League office, for which we are duly grateful. The other six are from club members. W^e are planning on publishing a monthly club newspaper, but you will hear more about it after our plans have materialized. Club members, attention! Remember our meetings on the 2nd and 4th Mondays of the month. "In Cooperation there is satisfaction." Oakie • Maynard's Activities (From a renort of the Youna Cooperators' Club to the annual meeting of the United Co operative Society of Maynard.) Our membership of 75 constitutes a body where one finds the children of parents who COOPERATION 57 speak various languages. This feature is im portant. It spreads the knowledge of our co operative activities not only to the homes of the founders of the cooperative society, but to all those who have thus far felt the restriction of a particular language. We have participated in spreading Coopera tive education. At present, a forum meets once weekly and it shows promise of becoming an institution in our club. That the scholarships offered by the Society to the Eastern States Cooperative Summer Institute are of enormous value is demonstrated by those young coopera- tors who have attended these courses. Credit for the Maynard interest in the organization of the Massachusetts Cooperative Youth League of which we are a member must be given to the students who attended the institute. Two of the Executive Committee of the Massachusetts Co operative Youth League are from Maynard. The Club has two representatives on the New England Educational Committee of the Eastern States Cooperative League. Two of our members are on the Board of Directors of our local society. When we elected them we furthered the interests of the Club to the ad vantage of the society as their creditable work will testify. Recently we have cooperated fully with the Women's Cooperative Guild and hope that the future connections will be stronger as we develop. As a group of young people we have ex tended ourselves into social activities, namely: Dramatics, dancing, card parties and socials. As a recreational center our club rooms have been a haven to those of our members who have been unemployed. In closing we present a list of the more im portant activities we have participated in: 1. The study classes at Brookwood Labor College,—our institute. 2. Our First Anniversary Program. 3. The Organization of the Massachusetts Cooperative Youth League. 4. The Cooperative Club Forum. 5. The Cooperative Summer Festivals. 6. The Cooperative Fall Festivals. 7. Our representation in: a. Board of Director's of local society, b. Eastern States League Educational Com mittee. c. Executive Board of Massachusetts Co operative Youth League, d. The local Society. 8. The help we offered Quincy in its Youth Club organization. 9. Social Activities and the League Play Com petition. Young Cooperators' Club • Doings in Fitchburg The Inter-Club Play Contest held here Feb ruary 2nd was a great success. The three clubs, Maynard, Hubbardston and Fitchburg com peted for the best acted one-act play. Fitch burg won the contest with "The Valiant," directed by Emil J. Waaramaa, president of the Fitchburg Youth Club. Maynard came second with "Ambition," and Hubbardston third with "Dawd Gast Ya Both." The plays were well presented to an appreciative audience. The United Cooperative Society of Fitch burg is sponsoring courses in cooperation, to be held in English, starting Feb. 20th and con-> tinuing every Thursday thereafter for a period of two months. A large attendance is expected. Mr. Kenneth E. Pohlman has charge of the classes. (Mr. Pohlman has lectured to us at the club on numerous occasions, always to a large assembly.) The alumni of E. S. Cooperative Institute are planning a reunion to be held in Fitchburg, March 4th and 5th. There will be a conference all day Saturday, the 4th, and in the evening there will be an Entertainment and Dance to be held at the Saima Hall. (Tickets are already being sold by the alumni of Massachusetts.) All day Sunday will be devoted to out-of-door ac tivities. We have a whole camp colony beside a lake at our disposal (doesn't that sound in viting?) Invitations have been sent out to all the students that have attended Brookwood for the past four years, and a good time is assured. It has been suggested that the New Yorkers come in a body by bus leaving New York Fri day night, and arriving here early Saturday morning. The New Yorkers intending to come are urged to get in touch with Julia Perkins, 167 West 12th St., or with Jack Coleman, 433 West 21st St., N. Y. C., immediately so that we can make accomodations for you individually. The Massachusetts students are to write to T. Wm. Reivo, 421 Mechanic St., or Miss A. Liikanen, 375 Elm Street, Fitchburg, immediately. The week-end will be spent in renewing and making new acquaintances, and discussing with them their experiences in cooperative fields after leaving Brookwood, and enjoyin" their pleasant company. It will be interesting to note which of the classes has the most nerfect attendance, leaving Brookwood and enjoying their pleasant for the future, and the committees are working hard to make them a success. A. M. L. The Story of the Community Hospital of Elk City, Oklahoma Concluded from page 48 guarantee the doctors' salaries. We hope however to be able to do this by reducing the annual premium to $15. Also it is our hope soon to make this a Farmers' Union hospital, for the ma jority of our members belong to the Farmers' Union, and there are some 5000 members of the Farmers' Union within twenty square miles around the hospital. This change to a Farmers' Union hospital will not alter the status of the cooperative hospital or the in terest of its stockholders. Also, we are thinking of other changes which will relieve us of the payment of t-axes. 58 COOPERATION Readers' Forum News from Waukegan The Men's Cooperative Guild of Waukegan, 111., had a discussion recently led by J. N. Hau- tala, on the subject, "The Cooperators and the Cooperative Brands." The general trend of the discussion was that all the cooperators, when buying merchandise from their respective co operative stores should concentrate in demand ing the cooperative brands of goods as much as possible. V/e do not believe in building the local cooperatives only, but will endeavor to build the movement on a national and interna tional scale. It was shown that when buying the privately marketed goods it is the same as sup plying the ammunition to our enemies, and if it is a crime for a cooperator to buy from private ly owned stores, it is just as well a crime for him to buy privately labeled merchandise. When we buy goods distributed by the co operative wholesales we are also buying goods to the full value of our pennies and at the same time are helping in building our own whole sales. The following were elected officers of the Guild for the next six months' period: president, Waldemar Petrell; vice-president, Toivo Jal- kanen; secretary, Leo Koski; treasurer, Elmer Adams: correspondents for the cooperative press, Anthony Willems and Leo Saari. The entertainment committee of five, program com mittee of three, and also auditing committee of three were also elected. The meetings of the Men's Guild are held at the Cooperative Club House every second and fourth Thursday of each month, at 7.30 P. M. Anyone interested is welcome to attend. Waukegan Cooperative Credit Union held its annual meeting on January 23rd. Last year was the second of actual operation for this or ganization. During the year the assets of the credit union have increased over 150%, being close to $8,000 at the end of the year. The membership has also increased from 82 to 129 during the year. We have now 50 borrowers, which is 26 more than a year ago. We made 61 loans during the year, totalling $11,905. Let's have another year of just as successful opera tions, and learn the habit to keep away from the loan sharks. If the times were not just as bad as they are, there would be no question of steady progress. The local Cooperative Unemployed League is growing strong. The total membership has reached the mark of 800 families. Many new unemployed leagues have been organized in the neighboring towns after the Waukegan ex ample recently and still new ones are in the bud. The activities of this league have been ar ranged on the self-help basis. Entertainments are held and funds collected to help the needy. Two carloads of potatoes, for instance, have been bought so far with the proceeds of the en tertainments and distributed amono the unem ployed. Numerous farmers in the vicinity have donated foodstuffs for the same purpose. The League holds its meetings every Sunday after noon at the Cooperative Club House, 523 Helmholtz Avenue. "Uncle." • Wanted: More Cement in the Cooperative Movement When the consumers' movement started with the Pioneers in Toad Lane, Rochdale, the only cement to keep the members together was the return of the surplus in form of purchase divi dends. The members could convert the divi dends into shares of stock on which the society paid interest of 5% as an incentive to invest. This is the foundation of consumerization: the cement to bind the members, and a plan to get capital. They did not limit the shares, in order that there should be capital to spread. It laid a foun dation for a world movement. The German and the Belgian movement fol lowed the English with a better organization, to my mind, adding social insurance, sick and child-birth benefit, and an orphan fund. The members are willing to pay a little more on their purchasing in order that they are secure on a rainy day. In Belgium the cooperators paid a cent more on a loaf of bread for the purpose. It is a fraternity, not just a business with share holders. I dislike to call members of a cooperative so ciety, shareholders. It sounds like a Coopera tion of Capitalists to make money for share holders. My idea is to combine the consumers' movement with fraternalism. It should be a humanitarian movement. It should palpitate with humanism. Everybody should see and feel the difference from ordinary corporation busi nesses. Hyman I. Cohn, Bronx, New York. • Apples, Competition, etc. By way of diversion, let me inform you that you have cast obloquy upon this fair North west. You mention the "tasteless apples" from the Northwest. I was born and raised to the mature age of COOPERATION 59 17 in southern Ohio where they raised "apples that were apples," so I thought. I have spent 35 years in Washington and have eaten apples that came from California, Oregon, eastern and western \Vashington, the latter right from the trees and those bought in the open market. Having thus qualified as a taster of apples I rise to pronounce your difficulty to be either apples from California or from some part of Oregon, or unwise choice. Bro. Herron's article on competition indicates that he likes competition, or feels that he needs it, but as for me I want none of it. Perhaps much of our attitude will depend upon our con ception of competition but it seems to me that competition is a driver while what we need is a puller. One should see a goal ahead and not a fear behind. There is more enduring and ef fective and wise strength in the former than in the latter. It may be that for a time we must encourage competition between individuals or groups of individuals in order to secure their efforts, since we have all been educated to the belief in that school, but I cannot heln but be lieve that a bucket of oats is a greater incen tive to a mule than a kick in the rear; and fur thermore, I cannot believe that rewards on a competitive basis are just or productive of the best results; at least we should look forward to educating people out of that idea if such an idea does exist. U. G. Moore, Seattle, Wash. FIRE INSURANCE ON YOUR FURNITURE SAFE-ECONOMICAL-COOPERATIVE WORKMEN'S FURNITURE FIRE INSURANCE SOCIETY 227 East 84th St., New York, N. Y. Member of The Cooperative League of the U. S. A. Under supervision of N. Y. State Insurance Department. The Cooperative Builder The official organ of Northern States Cooperative League Central States Cooperative League Central Cooperative Wholesale Midland Cooperative Oil Association The Canadian Cooperator Brantford, Ontario, Canada The organ of the Canadian Coopera tive Movement, owned by and con ducted under the auspices of The Cooperative Union of Canada. Published monthly 75c per annum /\n interesting ana lively cooperative journal published semi-monthly at Superior, \Vls. Subscription rate $1.00 per year. CENTRAL COOPERATIVE WHOLESALE Superior, Wis. NEW ERA LIFE ASSOCIATION Affiliated with The Cooperative League of the U. S. A. All standard forms of Legal Reserve life insurance contracts written. We can insure you by mail without medical examination. Cooperators. patronize your own insurance society. For full particulars clip this coupon. New Era Life Association Grand Rapids, Midi. Without obligation send me information concerning your different certificates: Name Address .___ —————— .Age: —— COOPERATION STUDY CONSUMERS7 COOPERATION The books and pamphlets listed below are available through The Cooperative League. Read them and pass them on to your friends HISTORICAL Per Copy Per 100 38. Consumers Cooperation In the United States (illus.), 1930.... .10 8.00 M. Story of Toad Lane (By Stuart Chase) ...................... .06 4.00 TECHNICAL 4. How to Start and Bun a Roehda)e Cooperative Society .......... .25 15.06 6. Model By-Laws for a Rochdale Cooperative Society .......... -05 2.50 Z9. Credit Union Primer (By Ham and Robinson) .............. .6© 61. Model Lease for Cooperative Apartment House ............ .1© MISCELLANEOUS 16. Model Co-op State Law ........ .19 30. "When the Whistle Blew" (Story, by Bruce Calvert) .......... 08 67. How a Consumers' Cooperative Differs from Ordinary Business .02 .86 62 Buttons (League emblem), % inch diameter ............... -06 2.00 63, Sign or Transparency of League Emblem. Green and gold, 8 in. diameter ..............>..... -25 16.0fl 67. Stock certificates, engraved, with League Emblem. Bound in books of 100, 200, or 250 68. To Mothers ................... .02 1.00 70 Farmers' Cooperation, A Way Out: An address by L. S. Herron.. .05 4.00 72. "Little Lessons in Cooperation" 30 74. The Burden of Credit ......... .02 1.00 76. What is the Cooperative Store.. .03 2.00 76. What is Consumers' Cooperation .05 4.00 77. The Most Necessary Thing in Life ......................... -02 1.00 78 Are You Sure You Are Getting Your Money's Worth ........ .02 1.00 79. There Are Two Sides to Every Counter ...................... -02 1.00 80. Consumers', Credit, and Produc tive Societies, BML 531 of the Bureau of Labour Statistics.. .25 81. Cooperative Y'outh Songs ...... .25 82. What Cooperation means to a de pression-sick America ........ .03 2.00 "What Consumers' Cooperation Means to a Depression-Sick America" Try it on your depression-sick friend A new leaflet, mostly pictures 3 cents per copy, $2 per 100 We also recommend "What Is Consumers' Cooperation?" by Dr. J. P. Warbasse. A clear, concise definition. 5 cents per copy, $4 per 100 Order from The Cooperative League MONTHLY PUBLICATIONS Cooperation — (In bundle lots, $7.50 per hundred^. Subscription, per year (foreign, $1.25).... $1.09 REVIEW OP INTERNATIONAL COOPERATION (Pub. by the I. C. A.) ........ Per Year, $1.59 BOOKS The following books are recommended as con taining the best disci-.ssion of the model i Coopera tive Movement. They may be ordered through The League, postpaid as follows: Bergengren. R. F. : Credit T'nion. A Cooper ative Banking Book 1931 .............. Blanc. Elsie T : Cooperative Movement in Russia, 1924 _________________ Brightwill, L R. : Animal "Co-op" Book — For Children ........................ Raivaaja Print—Fitchburg, Mass. Chase and Schlink: Your Money's Worth, A Book for Consumers ................ Flanagan, J. A. : Wholesale Cooperation in Scotland, 1920 ........................ Gide, C. : Consumers* Cooperative Societies, American edition and nous, 1622, Cloth Hall, Prof. Fred: Handbook for Members of Cooperative Committees ............. Holyoake: Rochdale Pioneers 1S92 ....... Hough, E. M-: Cooperation in India 1832.... Indian Cooperation, Children's story ...... Jessness, O. B. : Cooperative Marketing of Farm Products ....................... Kress. A J. :Car>italism, Cooperation, Com munism, 1932 ......................... Life As We Have Known It Life stories of English guildswomen, telling what the Guild has done for them.. Madams, J. P.: The Story Retold ......... Nicholson, Isa: Our Story ................ Odhe. Thorsten: Finland, A Nation of Co- operators ............................. Oerne, Andres: Cooperative Ideals and Problems ............................. Owen, Robert: Autobiography ........... Polsson, E.: The Cooperative Republic.... Potter. B. : Cooperative Movement in Great Britain 1891.. ...................... ... Redfern, Percy: The Story of the C. W. S. Redfern, Percy: The Consumers' Place In Society, 1920 .......................... Smith-Gordon & Staples: Rural Recon struction in Ireland, 1918 ............ Smith-Gordon and O'Brien: Cooperation in Denmark ............................. Smith-Gordon and O'Brien: Cooperation in Many Lands, 1920 .................... Stolinsky, A. : The Cooperative Movement. (In Yiddish) ......................... Warbasse, J. P. : Cooperative Democracy, (1927) ............................... Warbasse, J. P.: What Is Cooperation, 1927 Warne, C. E. : Consumers' Cooperative Move ment in Illinois 1926. ................. Webb, B. and S. : The Consumers' Coopera tive Movement, 1921 .................. Webb, Catherine: Industrial Cooperation, 1917 .................................. Woolf, Leonard: Cooperation and the Fu ture of Industry ..................... Cooperation, Bound Volumes, 1915 to 1931 inclusive, each ....................... The People's Year Book, 1S32, English, paper .75, cloth Year BOOK of The Cooperative League, 1932 ?1.5B 1.50 .IB 1.10 2.10 l.bO 250 1.10 3.75 .16 3.10 2.00 1.25 .8.1 .26 1.50 1.86 .75 1.85 1.10 1.26 1.00 1.00 1.10 1.60 1.00 1.50 .76 3.50 6.00 l.«0 1.66 1.25 1.35 .76 COOPERATION Organ of the Con- Movement in the sumers -a United S| ates LIBRARY 4MI Wait i *» B APR 111933 Vol. XIX, No. 4 APRIL, 1933 10 cents IN THIS ISSUE The Public Might Take Care of 7ts Health Dr. }. P. Warbasse The Cooperative Movement in Palestine N. Barou ' Cooperative Housing Emanuel Stein 62 COOPERATION COO PERAT1O N An organ to spread the knowledge of the Cooperative Movement, whereby the people, in voluntary association, produce and dis tribute for their own use the things they need. Published monthly by The Cooperative League of the U. S. A., 167 West 12th St.. New York City.___________________ OSCAR COOLEY, Editor Contributing Editors George Halonen A. W. Warinner L. S. Herron Herman Liebman V. S. Alanne___________George Jacobson Entered as Second Class matter, December 19, 1917. at the Post Office at New York, N. T., un der the Act of March 3, 1879. Price $1.00 a year. Vol. XIX, No. 4 April 1933 Farmers as Radicals Of all classes the farmer should most naturally and easily turn to the practice of consumers' cooperation. First, because he is the only fellow who still produces, to any extent, for his own use. This is the basic principle of consumers' cooperation. To the extent that the farmer and his family are self- sustaining, t;o that extent they are a "consumers' ' cooperative society" in miniature. Thus what he and his family do and always have done as a matter of course, city consumers are doing when they establish their cooperatives. If they are to be in anywise blamed, then blame him for planting a hill of beans. Of course consumers' coopera tives take trade away from old-time business. So does the farmer planting beans for his own pot, or corn to fatten the hams that will hang in his own smokehouse. Think how the trade of Swift & Co. would be increased if the six million farmers in the United States ceased sticking pigs for their own use! Consumers' cooperative societies don't raise beans or hogs for their own use for the simple reason that they do not live on the land, where those things can be done. But they carry on other processes of production for their own use, such as retailing to themselves through their ;own store, baking for themselves in their own bakery, pas teurizing milk for themselves in their own dairy, or housing themselves in their own apartment house. A cooper ative store is a production plant, just as truly as is a farmer's smokehouse. "Production for use, not for profit" is such a commonplace" practice of the farmer that he probably never has thought what a radical thing he waa doing! • What a Difference! To find markets or outlets for his commodity the profit-seeking producer must do one or all of the following: 1. Hire salesmen or commission agents; 2. Produce blindly for unknown markets; 3. Undersell his competitors or buy them out; 4. Advertise his goods; 5. Look for foreign markets if ne cessary; 6. Sell on credit when overstocked and lose on collections; 7. Maintain his private profit, and pay dividends to his investors; 8. Reduce wages to lower cost or raise profits; 9. Lay off help when not producing; 10. Demand of his Government pro tection for his interests even by force, which means War. And all this is added to the ultimate price of the commodity which the con sumer must pay, unless he goes to War. Then, of course, he gets every-' thing free plus '$30.00 a month, with an insurance policy, and a white cross should he suddenly decide to consume a bullet or two. So much for Caoitalist production and distribution. Now let us see how Consumers' Co- operation by reversing the entire pro cess eliminates all the above mentioned evils. 1. Consumers organize into socie ties and create a known demand. (Eliminating evils No. 1, 4 and 5 from above list). 2. Finance their own distributing en terprise thru small share holdings. (Eliminating evil No. 7). 3. Set up a Wholesale when mem- Continued on page 66 COOPERATION 63 The Public Might Take Care of Its Health By James Peter Warbasse, M. D. THE consumers—the patients and prospective patients—have failed to take care of their health. This fail ure has been costly. It is attracting much attention. A Committee on the Cost of Medical Care has been in oper ation for some five years and has made a report. This committee was com posed of highly conservative doctors and laymen. The chairman was Ray Lyman Wilbur, M. D., Secretary of the Interior, in Mr. Hoover's cabinet. Everybody was surprised that the committee reported unfavorably upon rugged individualism in medicine. They found that it does not succeed. The doctors have trouble in making a living, and the patients have difficulty in getting medical care. There are 142,000 physicians in the United States. Their average net in come is $5,300. One third of all private practitioners have net incomes of less than $2,500. For every physician with a net income of more than $10,000 there are three with net incomes of less than $2,500 each. These figures are of 1928 and 1929. Now the doctors are seriously depressed. On the other hand the public is not getting medical service, although $3,500,000,000 is spent annually in the United States for that purpose. Surveys show that 50 per cent of people having incomes under $1,200 a year receive no medical care in illnesses needing medi cal attention. An average of 38 per cent of persons, having illnesses that cause incapacity, receive no medical attention. This is white people. A sur vey among the negroes of one county in Tennessee showed that among those who had syphilis, 86 per cent had re ceived no professional treatment what ever, and less than 3 per cent had been given the only known specific treatment that can cure the disease. People defer sending for the doctor. They are afraid of the unknown costs. The expansion of medical know ledge, especially in the fields of diag nosis and treatment, has gone beyond the capacity of any single physician. Once the old family doctor was mas ter of the whole gamut of medical learning. He is gone. Medicine is now for experts in its several departments. This means that the patient, with any thing but the most simple malady, must pass through many hands. The average patient can not afford to employ all of the service that medi cine can render. The average doctor can not afford to give the time and attention to each case necessary to bring to bear everything that medical science has to offer. The expansion of medical learning is creating a problem for both physician and patient. The problem of specialization may be solved by the union of doctors into groups for prevention, diagnosis and treatment. These are comparable to the guilds or trade unions. The problem of the inability to pay may be solved by the group insurance method. The patient when he is well must make his contribution to medical protection in order that when he is sick the cost shall not be so great. These two are most effectively com bined by the consumers' cooperative method. The organized doctors repre sent the trade union of employees. The patients are organized as consumers. The trouble in medicine today is due to the neglect of the consumer. This is now the cause of the collapse of our banking system and is preventing the recovery of business. Any social insti tution, to be on a sound foundation and to deliver service, must have its con trol in the hands that pay for and con sume the service. The consumer prin ciple in medicine is the practical prin ciple. To vest control anywhere else ultimately fails. The neglect of the consumer has brought the world close to chaos—and medicine with it. Where the consumers' cooperative 64 COOPERATION societies have added medical service to their functions, they have quite gen erally succeeded. Where groups of consumers have organized cooperative societies for the special purpose of sup plying medical care, they have proved efficient. This is testified to by the splendid medical services of the cooperative so cieties of Holland, France, Belgium, Germany and other countries. In these societies we see the members, united under Rochdale principles, maintaining hospitals, clinics and laboratories, with all of the scientific facilities for diag nosis and treatment. We see them em ploying physicians, chemists, nurses and technicians, with guaranteed sala ries representing more than the aver age incomes of their several crafts. We see them establishing convalescent homes, and sanatoriums—in Great Bri tain, using for these purposes the cas tles of the nobility and the ancient man or houses of the decaying bourgeoisie. In cities such as The Hague, we see a cooperative health society with 118,000 members, representing more than one fourth of the population. In these cooperative organizations, the members receive medical attention whenever it is needed. The service is paid for, whether the members are sick or well. The physicians have their as sured incomes, whether the people have treatment or none. And these members would rather pay for medical service and not need it than pay for it and get it. The consumers in the United States could make use of this principle, if they would. They could establish their own medical centers and employ physicians to keep them well. They could main tain hospitals and dispensaries and provide medical service for all of their members at all times. They could pay doctors adequate salaries. They could bring to all of their members the ad vantages of the advances of medicine which now only few enjoy. All of this is possible under the cooperative method. It remains to be seen to what degree the people have the intelligence, the initiative and the efficiency to pro tect themselves in this way and lead medicine out of the morass of profit business in which it is lost. Cooperative Housing By Emanuel Stein Mr. Stein is an instructor in New York University. He has recently written a book on "Housing in New York," TN December, 1931, there was held •*- at Washington President Hoover's Conference on Home Building and Home Ownership. To this conference, which was attended by students of the problem and by people actively en gaged in housing, there were presented many reports of committees which had been engaged for many months in in tensive study of special aspects of housing. One of these committees, that on Blighted Areas and Slums, made a detailed survey of the housing problem in cities and came to the conclusion that drastic remedial action ought to be taken. In his foreword to the report, Ray Lyman Wilbur said, "The housing conditions of the wage-earning popu lation of American cities and industrial villages, with surprisingly few excep tions, are characterized by ugliness, poor sanitation, overcrowding of build ings on the land or of people within the dwellings or bedrooms. The num ber of wage-earning families affected by such unwholesome, drab, and un inspiring conditions runs into the mil lions .... "The slums of our cities, and blighted areas, whether in cities, towns, or vil lages, are an economic and social lia bility and disgrace. No nation can af ford to permit such conditions of un wholesome daily living to be perpet uated for they are too closely linked not only with industrial inefficiency and COOPERATION 65 economic incompetence on the part of their victims, but also with colossal annual expenditures on the part of public and private agencies for poor relief and social service, for cure of the sick, reform of the delinquent, educa tion and reformation, which alleviate after the needless damage has been done." Secretary Wilbur went on to discuss the nature of the reform which he felt to be the most suitable, adding, as an afterthought, that if private en terprise did not come through, some form of government housing would have to be adopted. This same report, in describing the various model housing projects that have been started in different parts of the country, discusses the cooperative houses that have been built, in New York at various times during the past six or seven years. These houses have been of such outstanding appearance and have, almost without exception, operated so well as to have become shining examples of what cooperative effort combined with care and skill in management can do, given the oppor tunity. Large-scale housing offers an almost unparalleled opportunity for the prac tice of Rochdale principles as formu lated by the Equitable Pioneers. For here, as in few other instances, does there appear a common economic problem whose solution is of major im portance to most people and which at the same time contains within itself the essence of the cooperative common wealth. The cooperative grocery, bakery, restaurant, and creamery, as well as cooperative purchasing of laundry and electricity service, affect the cooperators only incidentally. Living in large cities, the interests of the cooperators are for the most part diverted to other things, the coopera tive movement appearing to them as something visionary, unreal, and with out great promise. It is in cooperative housing that there emerges a concrete instance of the possibilities inherent within cooperative effort. More than that, the mere fact that people are brought in close proximity to one an other, that they become well acquaint ed, and that they learn to solve com mon problems by common effort is one of the chief advantages of the coopera tive dwelling over other forms of co operation. Let us trace, then, a cooperative apartment house from the time the de sire for such a house first occurs to the participants. The chief problem, apart from the purely mechanical ones involved in the choice of a site and the drawing up of building plans, is that of finances. In the cooperative house, a corporation is formed and shares, generally in the denomination of $100, are sold to the cooperators. To take a specific example: suppose that the total cost of the structure is $1,500,000 and there are 1,000 rooms in the house. Assuming that it is possible to get a first mortgage for two-thirds of the total cost, the sum of $500,000 would have to be advanced by the cooper ators. This would mean $500 per room. Hence, a person desiring a three-room apartment would purchase 15 shares; the occupant of a four or a five-room apartment would have to purchase 20 or 25 shares respectively. One of the difficulties to be avoided is that of selling the apartment to the cooperator. Under no circumstances should the cooperator own his apart ment with the consequent right of sell ing or sub-letting at will. It is highly desirable for the tenant-cooperator to get a long lease on his apartment, but all resales should be in the hands of the corporation. This has the dual ad vantage of preventing the tenants from selling their apartments at a profit to the detriment of the other tenants, and second, of preventing undesirables from coming into the house. Further, as far as possible, no apartments should be rented, nor should people living outside of the house be permitted to own stock of the corporation. In short, every tenant should be a stockholder, and every stockholder a tenant. The management of the enterprise is, as in other cooperative ventures, chosen by the stockholders, each man having one vote regardless of the num- 66 COOPERATION her of shares he owns. Thus, the man occupying three rooms has the same voice in the affairs of the house as the man occupying five or six rooms. Sim ilarly, all committees are elected by the vote of the residents and should, in general, consist almost entirely of tenants. A monthly carrying charge should be fixed which is sufficient to meet all operating expenses and fixed charges, such as interest on the mortgage, de preciation and taxes. If, at the end of the year, there is a surplus in the cor poration's treasury this should be re turned to the cooperators in propor tion to their payments, unless it is deemed advisable to set up a special reserve fund. Care must be taken that the carrying charge is high enough for ordinary purposes and not so high that it will act as a bar to prospective coop erators. It is desirable that repairs and renovation be done under the direction of the corporation to insure speedy and effective repairs and renovation. Of course, the carrying charge would have to be somewhat higher to make allowance for these. It is to be expected that, other things being equal, a cooperative apartment house will be conducted more efficient ly than a privately-owned one. In the first place, the cooperators take a great deal of pride in the appearance of their house—'buildings of the Amalgamated Housing Corporation are an outstand ing example. Second, damages to the property and wasteful consumption are paid for by the tenants themselves; they have every incentive, therefore, to be as careful of the house as possible and to try to avoid all unnecessary ex pense. Other cooperative activities can be carried on which should prove de sirable and profitable. Cooperative groceries, bakeries, meat stores, dry- goods stores, cooperative laundry service, etc., are all possible and should be introduced wherever the size of the project will warrant such extensions of the field of cooperative endeavor. Nat urally where the unit is small a gro cery store all of whose business is to come from the cooperators is probably impossible. But, it should always be fairly simple to buy milk and laundry service cooperatively and thus to effect a substantial economy. One further field of work is possible: cooperative education. A cooperative house offers a splendid opportunity for the establishment of classes of various kinds for adults and young children: it is easy to supplement the classes with clubs, discussion groups, and open forums. While the educational activi ties at the Amalgamated Housing Cor poration are far superior to those in any other cooperative house, they merely illustrate what can be done if only the attempt is made. Space does not permit further elab oration of this most interesting sub ject. It is perhaps sufficient to say that, of all the forms of cooperative organi zation, the cooperative apartment house is the one with the greatest immediate advantages both in an economic and cultural sense. Sceptic: I don't think much of this cooperative store idea; it takes jobs away from private store-keepers. How do you justify that? Cooperative propagandist: Sir, do you shave yourself? S.: Yes. C. p.: Does your wife cook your din ner? S.: Usually. C. p.: Bad, very bad. You are taking jobs away from barbers and your wife is ruining the business of restaurants. \Vhat a Difference! Concluded from page 62 bership increases. (Simply a central purchasing service to buy more cheap- ly.) 4. Go into producing only when enough societies affiliate to assure a consuming market. (Eliminating evils No. 2, 3 and 6). 5. Substitute service and quality for profit. (Eliminating evils No. 8, 9, and 10). H. Liebman. Editorial in Amalgamated Cooperator. COOPERATION 67 The Cooperative Movement in Palestine By N. Barou Mr. Barou has recently spent two months in Palestine where he made a study of the Cooperative Movement. HPHE visitor to Palestine is im- J- pressed by development of the cooperative movement. While cross ing the country one sees two Pales- tines: one primitive, muddy-looking, badly cultivated, recalling Germany or Ireland of 70 years ago, or Russia at the end of the last century; and the other, bright, cultivated, even Amer icanized, with tractors and combines and with beginnings of prosperity. The first is built on Felach labour, ex ploited by Effendis, absentee land lords; while the other is tilled by co operative organizations of Jewish workers and small producers. Palestine is a small country with only 1,035,000 inhabitants. It is pre dominantly agricultural; the settled rural population numbers 570,000, the urban 387,000; while there are also 60,000 to 80-.000 nomad bedouins. Ten years ago there were 84,000 Jews in Palestine (11% of the total popula tion), and in 1931, 175,000 (16.9%). The Jewish rural population has in creased from 15,172 persons in 1922 to 46,465 in 1931, i. e. threefold. The first cooperative society was organized by Jewish settlers 40 years ago. It was very difficult to develop cooperation in Palestine at this period because cooperative societies under Ottoman law had no legal existence. Legal status was conferred on them in 1920, and rapid growth of cooper ative activities started ten years ago. Cooperative societies registered in Palestine number at present 308; in cluding 67 credit and banking, 52 agricultural, 93 building and 96 con sumers, productive and otKer societies. It is estimated that over 200 are in operation. The cooperative movement is still almost entirely Jewish, except ing five societies, four German and one Arab (orange marketing), just reg istered. Agricultural Cooperation Agricultural cooperation plays a dominant part in cooperative activities in Palestine. Cooperative marketing of oranges, almonds, grapes, milk and dairy produce, eggs, honey, vegeta bles, tobacco, grain, etc., has amounted in the last year to nearly £900,000 or about 20% of the total trade of the country in agricultural produce. The three main cooperative orange market ing associations, "Pardess," "Hachak- lai," and "Hit" have handled for the last season about 1,000,000 cases or nearly 40% of total orange export trade of the country. They have al ready done excellent work in the or ganization of picking, packing, ship ping and marketing, but a lot more can be done. The ideal of the future is the organization of a Palestine Coopera-1 tive Citrus Growers Exchange. A leading part in the internal market is played by another marketing or ganization, the cooperative marketing association of the Jewish workmen's settlements, "Tenuvah." These work men's settlements, "kevutzoth," repre sent a new form of collective effort and have played an important part in Jew ish rural colonization; they have been a school for the training of agricultural labour and have transformed many thousands of acres of stony and swampy land into prosperous modern colonies. The settlements are provid ing members with all requirements and their whole economy is built on col lective lines; even to the bringing up of the children. They have been pioneers in developing new, progressive methods in agriculture. Their total production amounted in 1931 to nearly £180,000 and their membership was over 3000. "Tenuvah" handles the marketing of these products. 68 COOPERATION A new form of rural cooperative activity is represented by the Agricul tural Contracting Cooperative Asso ciation, Ltd., "Yachin." It is engaged in the plantation and cultivation of oranges, bananas, and other fruits for clients, many of whom reside abroad. For the last year Yachin has done work of over £30,000, employing 400 workers. Yachin has made good progress in developing the technique of work and in diminishing costs. Rural cooperative insurance is rep resented by two cattle insurance so cieties, which have insured 5,240 head of cattle in 94 villages for a value of £140,000. Credit Cooperation Credit is the largest section of the cooperative movement in Palestine. It is divided in two groups: the credit so cieties formed by small artisans, trad ers, farmers, etc. and the loans and saving societies (credit unions) organ ized by wage-earners. The informa tion supplied by 33 societies of the first type show that they unite 28,490 members, with £130,000 capital and reserves and £641,000 deposits. In May, 1930, 17 societies operated in towns and 27 in villages. The workers credit unions (three in town and five in rural districts) have a membership of 7,211 and have accumulated a capi tal of £10,471 and deposits of £17,225. Thus, the whole cooperative credit movement unites nearly 36,000 mem bers or 20% of the Jewish population of Palestine. The accumulation of resources is not less successful. The credit movement has accumulated near ly £700,000 deposits or nearly 15% of the estimated total deposits of the country. The members receive credits on normal terms, 10—12% per annum and are enabled to develop their pro ductive activities and to organize their households free from the exploitation of usurers and money lenders. The amount of loans granted to clients is very considerable: out of total loans of the credit system in Palestine of about £4,000,000 the indebtedness to cooperative credit societies amounts to nearly £900,000, or 22%. The very rapid growth of the movement has in it great dangers. The societies need very close supervision and revision by a first class Auditing Union. It is re assuring that the great majority of them understand this need and a con ference convened in April 1931, unan imously decided to organize such a union. Unfortunately the registration of the union had not yet been ap proved by the Government of Pales tine. Workers Cooperation Workers cooperation in Palestine represents a centralized and widely ramified system. The General Federa tion of Jewish Labor, which unites over 30,000 workers, has established a special cooperative association for the development of cooperative activi ties, "Chevrath-Ovdim." The various existing organizations are considered as branches of the association in dif ferent fields of cooperation: the "Nir" for the agricultural collective settle ments, "Tenuvah" and "Hit" for marketing, Yachin for rural contract ing, "Merkas Haco-operazia" for pro ductive and service cooperation, "Hasneh" for insurance and the "Workers Bank" as a central financial institution of the labor movement. The workers nroductive and service societies number 55 and employ more than 900 .persons. Their establishment was stimulated by the difficulties of adaptation to new economic conditions which it was felt could be more easily overcome by joint cooperative effort. The societies have accumulated £53;- 000 of capital. Their turnover of pro duction and services in 1931 amounted to £260,000. Consumers Cooperation Consumers cooperation is up till now the least developed branch of the movement, the newcomers, having been so busy organizing production, did not pay enough attention to their interests as consumers. The central cooperative consumers society, "Ha- mashbir," was formed in 1916 by the General Federation of Jewish Labour COOPERATION 69 for supply and marketinq. The bulk of its membership, consumers organ izations of rural settlements, had to sell their produce in order to be able to buy goods. "Hamashbir" had to take over the produce of the settlements and be come a mixed society of supply and marketing. It had to establish a spe cial department for the handling of the agricultural produce of its member so cieties. However, after years of ex perience, it was found advisable to transfer all the marketing activities to "Tenuvah." The "Hamashbir" serves now as a Cooperative Wholesale So ciety for the consumers' movement and kindred organizations, and as a central purchasing agency for all the branches of workers cooperation. It operates for 16 consumers' societies, 34 rural settlements, 27 worker groups and 31 other cooperative organizations and institutions. The turnover of "Ha mashbir" amounted in 1931 to £68,145. The rapid development of all branches of cooperative organizations has been largely helped by the Central Bank for Cooperative Institutions and the Workers Bank. Cooperative Banking The Central- Bank for Cooperative Institutions was organized in 1922 with the aim of financing the coopera tive movement, and especially the agri cultural cooperative societies. It has a capital of £102,666 and long term loan funds of £80,051. In nine years of activity the bank has extended £1,003,- 044 in short term and £107,570 in long term loans. During this whole period the bank had to write off only 0.8% as bad debts. The Workers Bank was established in 1922, has a paid up capital of £80,- 000 and serves the whole labor move ment of the country. During its nine years of existence it has granted loans amounting to £1,603,378, distributed among different groups of clients as follows: Agricultural organizations £512,125, Loan and Saving societies £93,767, various cooperatives £359.-- 368, Institutions £329,769, Public Works and Buildings £308,379. Arabs and Cooperation Cooperative organizations remain practically unknown to the Arab masses. The Arabs have much more land than they need to earn a living of a standard not lower than the Jewish. The question is not that of lack of land, but by whom it is owned and what is done with it. The small Arab cultivator (Felach) works with primi tive implements on his land and gets 600 pounds of wheat per acre. His cow yields him 800 litres of milk per year against 3,000 in the Jewish collectives and his chicken 90 eggs against 220. He "sells" his produce to the usurers at half price. Under such conditions no amount of land put at his disposal would help the Felach. The main cause of the low state of Arab agriculture and of the poor conditions of life is the heavy indebtedness and the high rates of interest, running up to 200% per annum, which the "national" repre sentatives of Arabs, the Effendi class, are squeezing out of the Felach masses. What the Felach needs is to feel that the land he cultivates is his own and can not be taken away from him at- any moment by an Effendi landlord 01 usurer. He needs cooperative organiza tion, which will teach him to work his land efficiently to grow produce which can be marketed, to breed good breeds of cows and chickens, to save and to receive credit. But in order that the Arab cultiva tor should learn all this, much prelimi nary legal and educational work is necessary. Cooperation is a part of the existing capitalist system. It can be built only on the basis of modern legislation. The British Administra tion has had enough time in 12 years to do good work in this respect, but it has not done much. It has proceeded with all these tasks slowly and with great delay. The Palestine Govern ment is now taking the first prelimi nary steps in introducing cooperation among the Arabs. It is sending a responsible civil servant abroad id study cooperation and to take over the office of the Registrar of Cooperative societies. 70 COOPERATION District Wholesales Make Progress Toward Central Buying THE central purchasing agency for district cooperative wholesales, discussed at two conferences in Chica go in November and December and named at that time the "National Con sumers' Cooperative, Inc.," made prog ress at a third meeting in Chicago Feb. 20. The name now proposed is "Na tional Cooperatives, Inc." By-laws were accepted and a simplified set-up, eliminating the complex and much de bated "membership agreement," was approved. One wrinkle remained to be ironed out and that was the agreement on the part of members: "To use every reasonable effort, with other members operating in ad joining or over-lapping territory, to ad just all differences and controversies in reference to territorial operations and business relations with members operating in such adjoining or over lapping territory, and upon request of such parties the National Coopera tives, Inc., shall use its best offices to effect a settlement." This was to be discussed further at another meeting to be held March 20, when further organization was to be carried out. Already these district wholesales are beginning actual cooperation by con tracting together for lubricating oil stocks, gasoline, grease, tires and bat teries. The gasoline contract, in addi tion to securing a very favorable price, provides that the contracting coopera tives shall receive 50% of the refiner's profits on the gasoline, kerosene and distillate which they buy. Under the new set-up, purchasing of a certain minimum volume by members is not made compulsory. This was a feature of the earlier plan which aroused much opposition from the "voluntarists." Member associations may now contract for certain quanti ties, or not, as they choose. The meeting of February 20 was described by those present as much more harmonious than the one of De cember 19, renewing hope that this central purchasing agency may even tually develop into a genuine "C. \V. £ " for America. The district wholesales represented at the February meeting were the Central Cooperative Wholesale of Superior, Midland Cooperative Oil Association of Minneapolis, Farmers Union Central Exchange of St. Paul, Illinois Farm Supply Company of Chi cago, Indiana Farm Bureau Coopera tive Association of Indianapolis, and Union Oil Company (Cooperative) of No. Kansas City, Mo. Representatives of the American Farm Bureau Federa tion and the National Grange were al so present. How to Spread Cooperation—Methods Any Society Can Follow Paid Advertising Does it pay? When and how? We all agree that cooperation needs propaganda and needs it badly. Then, isn't it worth paying for? We dislike advertising, say it is wasteful, anti social, etc., but we must remember that there is bad advertising (such as a $10,000 4-color page for a toothpaste in a national magazine) and good ad vertising (such as the retail advertise ment of the cooperative society in the local newspaper). Advertising is a tool for influencing the mind of the indi vidual. To influence the individual to COOPERATION 71 buy a certain toothpaste is one thing, but to influence him (or her) to join the cooperative movement and to use his dollars to build the cooperative commonwealth is decidedly another. Every cooperative society should ad vertise, to some extent, in the local press of its community. It should ad vertise its wares and it should adver- tise cooperation; it has a double mes sage. (It pays the private storekeeper to advertise merely his wares and not very fine ones at that). Such adver tising by the co-op pays because it brings more patronage. More patron age means more volume, more sales per dollar of operating cost, and therefore in general a larger percentage net earnings to be rebated to consumers or used otherwise, as the society may choose. Paid advertising pays too because it, again, is an invitation to the whole community to "come in and join us." Such invitations cannot be extended too often if the society is to avoid the danger of becoming isolated and of ceasing to grow. This applies to any type of consumers' cooperative society, in any size of community. Paid advertisinq should be judicious ly used. A big splurge is not necessary. Goods and prices should take up half or more of the space, but there should always be room for an "institutional" message, that is a few words about what cooperation is and what it means to the consumer. We have more to sell than goods at a price; let us say so. Slogans may be used, such as: "Cooperation frees the consumer from exploitation." "Speculation ends in depressions. Don't speculate; cooperate." "This store is owned by consumer- members; chain stores are owned by Wall Street." "Every consumer in. .... .is invited to join this cooperative society." "Cooperation began in Rochdale in 1844; it is going strong in. ........ .in 1933." "When every consumer cooperates, there will be no paupers and no pluto crats." "This society paid $...... back to consumers in 1932." But lengthier paragraphs should be used, too, explaining the Rochdale principles, showing that the coopera tive is not exclusive and why, describ ing the extent of the cooperative move ment, etc. The Cooperative League will supply such paragraphs if desired. Members of the Youth Club or Wom en's Guild should assist in writing such material. It is hardly necessary to say that the cooperative society which follows a policy of regularly buying space in the advertising columns is in a perfectly good position to expect publicity in the news columns; in a better position in fact than a private store because the private store is not a community insti tution of social significance and never will be. Paid advertising should be carried on as a policy, not as an occasional splash. We are not merely selling the consumer a can of beans, specially priced; we are selling Him an idea, the biggest idea in the world, without cost. He will buy the beans, eat them and forget it; but if he once gets the idea, it will last him forever. But the bigger the idea, the harder it is for him to get it, it seems. It takes constant and con tinuous propaganda. The effect of such propaganda is cumulative. Consequent, ly the society should make a regular appropriation every year for adver tising, realizing that it is in reality not mere advertising, but propaganda, or education if you prefer the term. Go, Ask Your Librarian Does your local public library take COOPERATION? If not, show the librarian a copy; maybe she will subscribe. Or maybe you will sub scribe for her. Think of the number of readers whom each copy will reach. COOPERATION should be in every public library, especially in every town where there is a coop erative society. 72 COOPERATION News of the Northern States Cooperative League Farmers' Union Central Exchange Holds Co-op Courses in North Dakota In spite of unusually cold weather and severe snow storms prevailing in North Dakota during the second week of February, the Farmers' Union Central Exchange of St. Paul went thru with its program of two-day cooperative courses, held in five localities in that State. The courses were originally scheduled to be held at Jamestown, Feb. 3-4; Devils Lake, Feb. 6-7; Minot, Feb. 8-9; Williston, Feb. 10-11 and Dickinson, Feb. 13-14. As the height of the February snow storm hit Minot on February 8 and reduced the attendance to a very small figure (6) it was decided to hold the school at Minot again the following week (Feb. 16-17). In the other four localities the courses were held in accordance with the organized schedule. Altogether 94 people attended the five courses. Attendance was best at Minot (6-25) and Jamestown (24). Of those attending, 24 were managers of Farmers' Union Oil com panies or F. LI. C. E. branches; 32 were board members; 14 other employees of Farmers' Union oil companies, while most of the remaining 24 were shareholders of Farmers' Union oil com panies or Farmers' Union members. The full schedule at each of the two-day courses comprised 8 fifty-minute class periods each day. However, on account of poor road conditions prevailing most of the time during the two weeks the full schedule could be fol lowed only at Jamestown. In the other localities a few hours were lost. The program at the courses consisted of classes in the Principles and Methods of Con sumers' Cooperation, conducted by V. S. Alan- ne, secretary of the Northern States Coopera tive League and classes in Qualities and Specifi cations of Petroleum Products, conducted by J. L. Nolan, one of the department heads of the F. U. C. E. Mr. Nolan also explained in detail the nature of the contracts entered into by the F. U. C. E. with certain oil refineries for the purchase of petroleum products. Mr. Alanne used one class period to analyze the financial statement of a cooperative business enterprise (a cooperative store or an oil association). Op portunity was always given to those attending to ask questions. The interest shown by those attending these courses was very gratifying. At Jamestown, the class elected a committee to draft a resolution commending the courses. • Success at Minot, N. D. About 12J/2 years ago a group of railroad men, residing at Minot, North Dakota, started a cooperative store in their locality. They called their organization the Minot Cooperative Com pany. The first couple of years did not go so well, because deflation set in even before the organization work of the new cooperative had been completed. But since 1925 the store has been on a paying basis and in some years it has done exceedingly well. For a few years the organization operated two stores but in 1930 the branch store was closed up, because it showed a loss, evidently due to dishonest man agement. The sales of the Minot Cooperative Com pany reached their peak in 1926. In that year they were $159,785. Three years later (in 1929) they still were $126,585. Since then the three depression years have made heavy inroads in the sales, as figured in dollars and cents. For 1932 the sales of the Minot Cooperative Com pany amounted to $69,291, which means a total deduction of 45.3% for the last three years. In last November an up-to-date meat market was opened in connection with the grocery store. In the first two months the sales of this new department averaged about $500.00 per month. Some $1,800 was invested in a modern ice box and other meat market equipment. The organization does *iot own its own building, but operates its grocery and meat market in rented quarters. When organized, the par value of the shares of the Minot Cooperative Company was fixed at $100.00. This may account at least partly for the fact that their membership has remained small, being now about seventy. However, at the last annual meeting of the M. C. C. which was held on January 26, it was voted unani mously to lower the par value of the shares to $50.00. Since then applications for shares have been received from nearly a score of steady patrons of the store. During the past several years an educational fund of more than $1,700 had been gradually accumulated but it was never used until recent ly. Now there seems to be a healthful awaken ing to the importance of educational work. As an indication of this we might mention that a few weeks ago the board of directors of the M. C. C. decided to order fifty copies of Dr. J. P. Warbasse's book "What is Cooperation," to be circulated among the members and pa trons. For several years, the Minot Cooperative Company, has been a member of the Northern States Cooperative League and last year they decided to have the League do their auditing. Real Service The Minnesota Valley Burial Association of New Ulm, Minn., is one of the largest organiza tions of its kind in Minnesota. Its secretary, Herman Pfaender, reports that during the past year his organization acquired 62 new mem bers, making its total membership at the end of the year, 1015. The membership fee is $5.00 per COOPERATION 73 family, and may be paid by installments, if so desired. There are no annual membership dues, nor are any assessments levied. At the end of the past year, membership fees actually paid in totaled $3,116.50. During the year of 1932 the organization conducted 82 funerals. The average cost of adult funerals was $210. Number of vaults used, 45. The total receipts of the organization during the year of 1932 amounted to $15,863.34. A permanent funeral director and licensed em- balmer is engaged and is paid a specific amount, varying between $30 and $50, for each funeral. The secretary of the organization takes care of the books and the general management and is paid a nominal salary (last year $355). The total administration cost for 1932 was $741.42. The net gain from operations in 1932 amounted to $1,305.69, which was allotted as follows: $400 to the depreciation reserve and $905.69 to the permanent reserve fund, making the latter, $1,702.88. The Minnesota Valley Burial Association was organized in 1930 with 10 members. The fact that its membership has grown so rapidly goes to prove that the organization is rendering a real service to the people. There is a large profit in the undertaking business and funeral costs have been cut to less than one half by the Minnesota Valley Burial Association. One would think that a business of this kind would have to be conducted strictly on a cash basis, but the financial statement of the M. V. B. A. shows accounts receivable to the amount of $3,679.95, as of Dec. 31, 1931, and at the end of last year these accounts receivable had in creased to $5,770.80. e Fulda Co-op Store Weathers Depression The annual meeting of the United Farmers' Exchange of Fulda, Minn., was held on Satur day, January 28. This organization has for the past twelve or thirteen years operated a gro cery store in the town of Fulda, which is lo cated in the Southwestern corner of the state, about 180 miles from Minneapolis. Besides gro ceries, the store has handled some produce from its members and patrons. The founders of the organization evidently had this function of the store in mind when they called it an "Ex change." The United Farmers' Exchange has suffered from the effects of the depression, the same way most of the other cooperatives have. Its busi ness showed a considerable loss for the year of 1931. In the beginning of 1932 a new manager was acquired and in spite of a heavy (44.3%) drop in the sales as compared with the previous year, the operating loss for 1932 was reduced to about one seventh of what it was for 1931. The sales in 1931 were $37,688, while in 1932 they amounted to only $21,007. The latter figure does not include the sales of binder twine which amounted to $2,650 and brought a net income of $127 for the store. As the accounting methods followed by the U. F. E. haven't been quite u*i to date, its dij rectors decided to ask the auditing department of the League to install an up-to-date system of books and to make a balance sheet audit of the last year's business. This has been done with the result that the figures on the League's audit report are quite different from those appearing on the statement presented to the last annual meeting by a local auditor. The statement prepared by the local auditor showed an oper ating loss of $3,115, with no depreciations taken into consideration, while the League's audit re port showed only a net loss of $777, of which $494 was depreciation on the store building and the store fixtures. The League's secretary, V. S. Alanne, ad dressed a gathering of some 150 people at a program meeting which had been arranged to precede the annual meeting. Free luncheon was served by ladies connected with the organiza tion. An interesting feature at the business meet ing was a proposition made by one of the di rectors of the U. F. E. to elect three women to fill the vacancies on its board. However, after considerable discussion, only men were elected. During the business meeting at which also a few women were present, one of the women inquired about the possibility of organizing a women's guild in the locality. It developed that she was a reader of the Cooperative Builder and had been following the work of the North ern States Cooperative \Vomen's Guild. The United Farmers' Exchange owns its own store building and operates a very neat-looking store. Its total assets, as of Dec. 31, 1932, amount to $18,273. Its paid-in share capital, in cluding patronage rebates payable in shares to the amount of $1,332.42, is $7,132.42. Balance of surplus fund or permanent reserve, $4,357. E. G. Christensen is now managing the busi ness and there are two other employees. The United Farmers' Exchange is a member of the Red and White Stores and is not yet affiliated with any cooperative central organiza tion. V. S. Alanne • From Superior, Wis. More than 200 members and patrons attended the annual meeting of the Peoples Cooperative Society on February 23rd. In spite of the de pression the year's business showed excellent results. Net sales for 1932 for the store and meat market totaled $72,652.24, only $5,344.00 short of 1931's record, with sales increasing in the last six months over the first half of the year. Taking into account last year's price declines, actual volume had increased by an estimate of 8%. The Superior store has been among the most efficient for years, and even bettered its service in the past period by re ducing average gross margin for the grocery and meat departments to 16.62% and inven tories by over $400, besides increasing the stock turn in both departments to 34 and 82 respectively. Operating on a cash basis, the store is financially sound, with current assets 7 times the liabilities, and reserves of $9,000. Net 74 COOPERATION gain for the year stood at $1,430.86, and by decision of the meeting this will all be dis tributed in purchase dividends. The society decided to take subscriptions for the Cooperative Builder and the Finnish Co operative Weekly for members and regular patrons. An educational committee was ap pointed. Joe Aho, Hjalmar Davidson and Victor Keskela were elected to the Board. Six dele gates to the annual meeting of the Cooperative Oil Association at Maple, Wis., and 9 dele gates to the annual meeting of the Central Co operative Wholesale were chosen. H. O. Sankari The "Spirit of Cooperation' SECOND PRIZE The Cooperative Spirit Edmund Seidel, New York City THE fundamental idea of coopera tion is so apparent that it hardly requires elaboration. The very word it self conveys the idea—working to gether, combined effort toward a com mon purpose, in place of singlehanded, individual effort. We have instances of such action in trade unions, mutual benefit societies, consumers' leagues, credit unions, housing projects. The essential feature of cooperation is that of conscious and deliberate mu tual helpfulness. The combined forces and resources of the members are pool ed to achieve that which it would be impossible for the individual to achieve single-handed. What, then, is the Cooperative Movement? It is the theory of coop eration translated into action! No more pious "wishing," but actual doing! Is it effective? Take housing as an example, among others. The Amalga mated Cooperative Apartments of the Bronx, N. Y., are a case in point. These houses are now rounding out their fifth year of success, and since their inception they have constantly expanded. From a first unit of 250 families, they have increased to four units of 600 families. What are the advantages enjoyed by the members of this community? As the purpose is not one of profit in the sense of capitalistic enterprise, but of comfortable living quarters with a rid dance of private landlord annoyances and exploitation, the members enjoy spacious, airy and sunlit rooms, at better than private landlord rates. They Prize Winners Announced We print herewith the second of the prize essays in our contest for the best example of the ssspirit of cooperation." The first prize, won by Esther Lilley, was $10 in cash: the second, won by Edmund Seidel, was $5. These were awarded by the Edu cational Committee of the Easterr States Cooperative League. Four third prizes, each consisting of a year's subscription to COOPERATION, •were awarded to Violet F. Holloway of Long Island City, N. Y., Mrs. Gust C. Albrecht of New Ulm, Minn., Mrs. Alex ander M. Cordiner of Minneapolis and Arthur Oman of Two Harbors, Minn. don't fret about ample heating in win ter, of repairs, hot water, or renova tions. They are their own landlords and treat themselves generously. In addition, they enjoy what they simply could not have from a profit- seeking landlord—beautiful and de lightful stretches of green gardens, winding walks skirted by hedges, a wealth of shrubbery, grassy carpets, and colorful flower-beds. The dead ening drab of cold and forbidding brick is eliminated and a variety of architectural design and nooks, set off by a plentiful verdure, furnishes its thrills and inspiration. What of the ethical gains? They are distinct, which is but natural. The members of a cooperative enterprise are all shareholders--part owners. As such they have a direct interest in its success, just as though it were their own private undertaking, which in deed it is jointly. There are no "ab sentee" landlords. A direct sense of responsibility is engendered, which leads to a sense of social concern. The Continued on page 77 COOPERATION 75 Cooperative Youth Report of the Eastern States Coopera tive League Institute Reunion The first reunion of all E. S. C. L. Institute students was held here in Fitchburo, Mass., March 4th and 5th. Invitations had been sent to all the alumni of the past four years; 25 former students came and the roll call brought forth greetings from as many more. ,xis? '"4 Members and friends of the alumni from other cities began to arrive Friday night, and by Saturday noon we had quite a crowd to gether. Due to the- fact that most of the New Englanders had to work Saturday afternoon we made the most of our time showing the visitors our fair city and points of interests, such as cooperative enterprises, some of which were altogether new to them. After our tour we settled ourselves comfortably around the coffee table at the Cooperative Cafeteria and enjoyed reading letters from members of the alumni that for some reason or other had been unable to attend and whom we missed very much. In the evening we all went to the Saima Hall where an Entertainment and Dance was held. The hall was filled to capacity with young people and it was a happy occasion. Everyone was up bright and early Sunday morning. It was a glorious day to spend out in the open. We went to a lake a short distance from here and built a fire in the fireplace of the camp and prepared our coffee (if the students of the 1931 class remember the "koffee Mutches" we used to have afternoons, then they have a perfect picture of the group at the re union.) We romped out in the snow and even had a snow fight, took snapshots, went on hikes, and did about everything that we pos sibly could until we were so hungry we had to retire to the cabin for another meal and more coffee. During these intervals of eating and joining in the out-door fun, we wrote a round- robin letter to Mr- Cooley. All our time was not spent in play, however, for we took time out to be serious also. It had been proposed at the last session of the Institute that at the reunion a check-up be made of the progress of the Youth Clubs to see how prac tical the Youth Club program, developed at the Institute, had proved to be. Charles Manty acted as chairman. The program was read by Svante Huhta- niemi, article at a time, and discussed. Most of the points brought out there had been tried and found usable. A motion was passed that each club propose at its next meeting the organiza tion of a junior youth club (for children). It was thought by the Fitchburg people that they had a good field for this work, and possibly other cities did too. The program was approved. It was suggested that it be carried on further. By the time the program had been gone through, it was growing dusk, and we had to leave the camp. \Ve had a parade of cars con taining cooperators, tired but happy. The week end was coming to an end, and everyone was sorry to have to bid good-bye to friends and class-mates, some of whom we probably wouldn't see again for some time to come. Everyone expressed their regrets at having to part, and with renewed courage to carry on further the good work for their respective co operative enterprises and for the cooperative movement, we waved "au revoirs." In behalf of the Fitchburg alumni I wish to express our sincere thanks to the cooperators and alumni that helped us to make this reunion a success and especially to Julia Perkins for her cooperation towards this end. Let us all hope that the next time a reunion is held, even more of us can get together. Aino M. Liikanen Secretary to the Reunion. ^ -'••» sfwi*-- sf =>- *-J^ f "f 76 COOPERATION Mass. Youth League News Last October the various Youth Clubs of Massachusetts gathered in Fitchburg and form ed the Cooperative Youth League of Massa chusetts. An Executive Committee was elected which includes the following members: Charles Hekkala, Herbert Ruotsala of Maynard; Olavi Wagg of Hubbardston; Hugo Erickson, Wil liam Reivo, Emil V/aaramaa and Helvi Kiuru of Fitchburg, with Emil Waaramaa acting as chairman and Helvi Kiuru as secretary- treasurer. Meetings have been held once a month. The Young Cooperative Club of May nard, Hubbardston Cooperative Club, Quincy Cooperative Club and the Fitchburg Coopera tive Club have entered into the League with a membership totaling close to 250. The follow ing is a list of each Club's officers: Young Cooperative Club of Maynard President—Richard Lawson Vice-President—Paul Heikkila Treasurer—Charles Hekkala Secretary—Helen Mark Mem. Sec.—Helen Mark Chairman Social Committee—Kay Koivu Chairman Sports Committee—Tauno Torppa Quincy Cooperative Youth Club President—Paul Cavan Vice-President—Emily Harvey Treasurer—Wilho Savela Secretary—Irja Aaltonen Fitchburg Cooperative Club President—Emil Waaramaa Vice-President—Hugo Erickson Treasurer—Aino Liikanen Recording Sec.—Miriam Honkanen Membership Sec.—Helvi Kiuru Chairman Educational Com.—Arne Oksanen Chairman Social Committee—Arne Oksanen Editor—William Reivo (Hubbardston's officers were listed in February Cooperation.) Joint entertainments will be presented at Gardner and Quincy for the further organizing of Youth Clubs during March. The League sponsored a Play Contest in Fitchburg on Feb ruary 2nd, which proved a success in all respects. Plans are under way for another play night sometime in April whereby each club will present a one-act play in Finnish, thereby ob taining our parents' interests in our under takings. Buying Clubs have been formed amongst the various clubs. When a fellow needs a shirt and a girl a pair of stockings we all know whom to go to. No, not the folks, but our purchasing agents. In this way large savings are obtained and with the aid of the local cooperatives, what more do we need? Local stores will soon rec ognize each buying club member and discounts will be offered galore. In this way cooperation is being spread throughout the neighborhood. The League heartily welcomes all clubs de sirous to work hand in hand with us. Join US! Secretary From the C. C. W. Region The work of sectionalizing our units is progressing, although slowly. In the State of Michigan, the Co-op Youth League units have organized two sections and in Minnesota, the Orr-Gheen and the Wawina-Mississippi sec tions are being organized. The members of the Co-op Youth League of Superior, Wis., are making themselves familiar with the practical side of Cooperation. Re cently, in place of a routine educational meet ing they visited the local store of the Peoples Cooperative Society, and listened to a talk on the store's history and problems by the man ager, Jalmar Nukala. Next they are going to visit the bakery plant of the Central Coopera tive Wholesale, where the bakery foreman will tell them about cooperative baking. They then plan to visit the Wholesale's main building, see the warehouses, stocks, offices, merchandise samples, and listen to talks on cooperative merchandising, by some members of C. C. W. staff. That is a way of getting first hand in formation. The Peoples Co-op Society in annual meet ing heartily commended the work carried on by the Youth League, Guilds and local Co-op Club. The members of these organizations had sponsored several united house-to-house visits in behalf of the store society. As a result, many new customers were obtained. A word about the Youth Courses for 1933. Plans are to conduct an advanced course, where the students will get instruction that will concentrate more on preparing them for cooperative organizational work. About 30 stu dents, 20-27 years of age will be accepted and given scholarships from the Course fund which is being raised by the various cooperative or ganizations in the district. H. O. Sankari From Chicago Our Junior Club held its regular meeting March 8th. We decided to join the Central States Cooperative League and have informed them to that effect. Our membership committee is planning another membership drive from March 29th to April 26th. We appointed an executive committee, to consist of our officers and the chairmen of the various committees. Its work shall be to suggest and plan projects with special emphasis upon making the educa tional ones popular. Delegates were elected to represent us at the Congress of the Central States League. An open air meeting is planned for sometime in June. Slides and motion pictures are to be used, and speakers will lecture on Cooperation and possibly other sub jects. We are working on a Minstrel Show which will be presented in May. The proceeds will be used to send students to our League's Summer School. Sunday evenings we hold a discussion circle at the Co-op Store. The subjects are general. COOPERATION 77 Last Sunday there were about thirty-five present; the speaker, a Socialist, sailed into the Cooperative movement but our side was well defended by our chairman Joseph Schu bert. Our Kiddy Club is getting along very well and are beginning to conduct their meetings themselves. We should like to hear from other Cooper ative Youth Clubs and we hope that any or ganization that needs advice or has any advice to give on matters pertaining to activity of Co operative Youth Clubs will please write to us. Frank Pesek Address: Junior Cooperators of Chicago, 2659 So. Crawford Ave., Chicago, 111. • EDITOR'S NOTE The Junior Cooperators have their own news sheet called the COOPERATIONIST. It carries high-lights of co-op news, a full program of the local social events and the pick of the mem bers' gossip. Keep us on your mailing list, Frank. • A Brother Youth Movement The Young Circle League of the Workmen's Circle, Socialist fraternal organization, is close ly akin to our Cooperative Youth Leagues. A paper entitled "Call of Youth" is published. The branches carry on educational and social work similar to our Youth Leagues. At a re cent conference in Philadelphia, it was reported that 9 YCL branches, with 233 members, were organized in the Eastern states in the last year. The "Spirit of Cooperation" Concluded from page 74 narrow, individual outlook makes way for a realistic social consciousness. What is no less important, a better understanding of the problems of man agement—economic problems—is ac quired. For in a cooperative project one deals with matters of finance, of industry, and of distribution, and learns to appreciate them. Members learn, not "in theory," but in practice. And all real learning, after all, is by doing! All of which is helpful in at taining a realistic understanding of the larger communal and govern mental problems; in short, a better un derstanding of our own affairs and of an adjustment to them. In this way the cooperative spirit, translated into deeds, equips people the better to work out their living problems and to get something out of life. This FREE Booklet Will say* you money I The U. S. Government and large corporations buy on I I SPECIFICATION to ensure high duality and low cost. I I You may enjoy similar benefits and savings by using the I I Ephraim Method of SPECIFICATION Buying described I I in this "Guide", which lists 37 Ephraim products for your I I personal and household needs. Send for free copy today. I When You Are Laid Off What happens to cooperative employees when they get old? In England and elsewhere in Europe there are elaborate plans for retiring cooperative employees on pensions. In this country, so far as I can learn the usual practice is to turn them out when they get old and let them shift for themselves. If they have saved some money it is all right. If they haven't it is just too bad. Is it time for the Cooperative societies in this country to set up a retirement plan? What do the members think about it? What do the boards think about it? Finally what do the employees think about it?— they are the ones most con cerned. If there is a demand for a pension scheme, the Insurance Service of the League is available to investigate the field and lay out a plan for starting one. Wm. A. Hyde, Mgr. Clusa Service, Inc. Insurance Pointer No. 4^ COMPANY STATEMENTS This is the time of the year when insur ance companies publish their annual state ments. By the same token it is the tima foi policyholders to make an annual check up on the companies in which they are in terested. Get statements from the agent 01 the companies and study them carefully. Look at the size of the surplus in a mu tual company or the capital and surplus to gether in a stock company. This is the emergency fund. How does it compare in size with the liabilities? Look at the quality of the assets. Is there a good sized bank balance and a backlog of quickly saleable high grade bonds? This is particularly important in a fire insurance company that may have to meet a con flagration loss at any moment. How are the assets valued? If they are quoted at any figure other than market is there a substantial reserve for depreciation? If the operating statement is published it is worth looking at. Did the company make or lose money on insurance operations in 1932? Did it make or lose money on invest ments? Many very good companies lost some, but the better ones didn't lose very much. A monthly insurance paragraph, con tributed by Clusa Service, Inc., the League's insurance service for Cooperators. 78 COOPERATION Readers' Forum The Guild Movement in Massa chusetts In spite of the fact that the cooperative movement is over 20 years old in this state, the women's guilds are only in their beginning. However, during last Cooperative month Helen Hayes-Lantto, whom we were fortunate to have with us was directly responsible for the or ganization of at least four women's guilds. They are (in the order of their organization) the May- nard Guild, with a membership of 64, the Farmwomen's Guild of Fitchburg with a mem bership of 15, the Fitchburg Cooperative Women's Guild, membership 45, and a Guild in Quincy. The latter group has not affiliated with the Massachusetts district group as yet, so we are unable to report their activities more definitely. We do know that they meet regu larly, have held entertainments and have es tablished their own paper. All of these groups function in the Finnish language, and confine their work mostly to their own nationality. Yet, tentative plans are on foot to extend their activities and educa tional features to the average American con sumers. The accomplishments of the Fitchburg and Maynard guilds in establishing guild rooms, which seem an essential part in bringing all the cooperative women consumers together are to be highly commended. This has required a great deal of effort on the part of the members, who have adopted the guild movement as their own. The male sympathizers have assisted willingly and the women are ever grateful for their cooperation. The district secretary is corresponding with all possible cooperative stores and organizations urging them to aid in organizing the women in to an active educational group. A formative plan of circularizing, and per sonal contacts by means of telephone and house to house canvassing is getting under way. The fast moving political, economic and social con ditions are a great aid for the so-called well-to- do class of people are counting every penny same as the unemployed. Some of the educational features of the Guild in Fitchburg are talks and lectures on the quality, price and preparation of foods; on Art, Sociology, Psychology, as well as entertainment, and practice in self-expression both oral and written. This is greatly aided by papers on such subjects as "My Conception of the Coopera tive Movement," "Women's Work in the Co operative Movement," "How we can most effectively aid the advancement of the Co operative Movement," all planned with the idea of forcing the women to think cooperative ly. To many of the women the work is tedious, but at the same time the spirit of their en deavors is very gratifying, and enjoyable not •only to each, but to the whole group. Lempi Rimpila News from Waukegan The Cooperative Trading Co. has pulled through the 1932 year of depression with a sales total of $607,016.24, or 20.77% less than that of 1931. The decrease was due to declining prices and to the buying power of the con sumers being greatly depleted, in many in stances, practically exhausted. However, there was a net gain for the year of $9,544.00. There were 67 new members, making the total in our organization 2,104. The annual meeting was held on March 4th, officials of the Board presiding and 286 mem bers present. The financial statement and re ports of the Board, the manager, educational committee and auxiliary organizations, were read, discussed and approved. The net gain for the year was voted to be divided as follows: 4% interest on the share capital, 1% rebate to the members and customers on the basis of their purchases, and 1/3 of 1% rebate to the milk producing farmers on the basis of their milk receipts. The balloting for Board members to fill the places of those whose term expired, brought the following results: Wm. A. Chandler and David A. Hustvedt, re-elected; Wm. Hill and Robert Moses, new; for alternates, Frank Wo- rack, A. H. Pierstorff and Mauno O. Heiska- nen. At the meeting of the Board on March 8th the following officers were elected: \Vm. A. Chandler, president, Oscar Carlson, vice-presi dent, Anton Stenros, secretary. The question of going on a cash basis in all our departments was seriously discussed at the annual meeting and the Board was instructed to make preparations to that effect and arrange ' so whenever they see it proper. This problem should be taken seriously, especially at times like these, bearing in mind that we had to re serve for doubtful accounts $12,822.02 during the year 1932, or 2.11% of the total sales of the year; $9,928.68 was entirely written off the books at the end of the year, considered worth less. The Educational Committee for the coming year is composed of the following members: from the Board, David Hustvedt, Robert Moses and Wm. Hill; appointed by the Board, Georgia Albright, Ed Carlson and Waldemar Petrell; from the Men's Guild, J. N. Hautala; to be elected, one from Co-op Women's Guild and one from Co-op Youth League. The Men's Co-op Guild had its monthly business meeting on the evening of March 9th. Reports of committees were read and approved. The Program Committee initiates one regular business meeting and one educational meeting for each month, the latter to alternate with edu cational entertainment every second month. Two members were elected to the picnic ground committee to serve jointly with the committee elected from other auxiliary organizations and from the Finnish Progressive Society. Walde- COOPERATION 79 mar Berg, Waldemar Petrell and Chas. Wirta were elected, alternatively, to act as fraternal delegates at the annual congress of Central States' Co-op League, which is to be held in Waukegan on April 23rd and 24th. To finish the business of the evening, an honorary vis itor, Mrs. Georgia Albright, led the discus sion on "How to Make Educational Committee Work More Effective." Constructive criticism and valuable suggestions followed. The next educational meeting of the guild will be held at the Club rooms on the evening of March 23rd and the next business meeting on April 13th. All the old members and an unlimited number of new members are urged to attend. • <•„ Leo Saari At the Men's Guild Entertainment of Thurs day, Feb. 23rd., Harry Carlson was the toast- master for the large gathering. The program consisted of two accordion- solos by G. Berg- mon, a song by S. Nordmpck, and selections by the harmonica orchestra. The speaker of the evening was Reverend Cowling of Gurnee, 111., a recent convert of the unemployed league. Refreshments were served, and dancing con cluded the evening. Anthony D. Willems • China reports a little under 100,000 cooperators in that country at the end of 1931. The Canadian Cooperator Brantford, Ontario, . Canada The organ or the Canadian Coopera tive Movement, owned by and crn- duc^ed under the auspices of The Cooperative Union of Canada, Published monthly 75c per annum FIRE INSURANCE ON YOUR FURNITURE SAFE-ECONOMICAL-COOPERATIVE WORKMEN'S FURNITURE FIRE INSURANCE SOCIETY 227 East 84th St., New York, N. Y. Member of The Cooperative League of the U. S. A. Under supervision of N. Y. State Insurance Department. The Cooperative Builder The official organ of Northern States Cooperative League Central States Cooperative League Central Cooperative Wholesale Midland Cooperative Oil Association An interesting and lively cooperative journal published semi-monthly at Superior, Wis. Subscription rate $1.00 per year. CENTRAL COOPERATIVE WHOLESALE Superior, \Vis. NEW ERA LIFE ASSOCIATION Affiliated with The Cooperative League of the U. S. A. All standard forms of Legal Reserve life insurance contracts written. We can insure you by mail without medical examination. Cooperators, patronize your own insurance society. For full particulars clip this coupon. New Era Life Association Grand Rapids, Mich. Without obligation send me information concerning your different certificates: Name ____________________.___>_________ Address ..Age: 100 COOPERATION STUDY CONSUMERS' COOPERATION The books and pamphlets listed below are available through The Cooperative League. Read them and pass them on to your friends HISTORICAL Per Copy Per 100 38. Consumers Cooperation in the United States (illus.). 1930.... .10 8.00 69. Story of Toad Lane (By Stuart Chase) ...................... .05 4.00 . . TECHNICAL 4. How to Start and Run a Rochdale Cooperative Society .......... .25 15.00 6. Model By-Laws lor a Kochuale Cooperative Society .......... 05 2.GO 29. Credit Union Primer (By Ham and Robinson) .............. .50 51. Model Lease for Cooperative Apartment House ............ .10 MISCELLANEOUS 16. Model Co-op State Law ........ .10 80. "When the Whistle Blew" (Story, by Brace Calvert) .......... 06 57. How a Consumers' Cooperative Differs from Ordinary Business .02 .85 62. Buttons (League emblem), % inch diameter ............... .05 2.00 63. Sign or Transparency of League Emblem. Green and gold, 8 in. diameter .................... .25 16.0« 67. Stock certificates, engraved, with League Emblem. Bound in books of 100, 200, or 260 68. To Mothers ................... .02 1.00 til. Farmers' Cooperation, A Way Out: An address by L. S. Herron.. .05 4.00 72. "Little Lessons in Cooperation" 36 74. The Burden of Credit ......... .02 1.00 75. What is the Cooperative Store.. .03 2.CO ~t*i. What is Consumers' Cooperation .05 4.(JO 77. The Most Necessary Thing in Life ......................... .02 l.CO 78. Are You Sure You Are Getting Your Money's Worth ........ .02 1.00 79. There Are Two Sides to Every Counter ...................... .02 1.00 80. Consumers', Credit, and Produc tive Societies, B:ili. ESI of the Bureau of Labour Statistics.. .25 81. Cooperative Youth Songs ...... .25 82. What Cooperation means to a de- pression-sicfe America ........ .03 2.00 83. What is the Cooperative League 84. The Coop. Movement, J. H. Dietrich .05 4.00 "What Consumers' Cooperation Means to a Depression-Sick America" Try it on your depre=sion-sirk friend A new leaflet, mostly pictures 3 cents per copy, $2 per 100 We also recormnpnd "What Is Consumers' Cooperation?" by Dr. J. P. Warbasse. A clear, concise definition. 5 cents per copy, $4 per 100 Order from The Cooperative League MONTHLY PUBLICATIONS Cooperation—(In bundle lots, $7.50 per hundred). Subscription, per year (foreign, $1.25).... $1.00 REVIEW OF INTERNATIONAL COOPERATION (Pub. by the I. C. A.) ........ Per Year, $1.60 BOOKS The following books are recommended as con taining the best discussion of the model a Coopera tive Movement. They may be ordered through The League, postpaid as follows: Bergen gren. R. F.: Credit TTnion. A Cooper ative Banking Book 1931 .............. Blanc, Elsie T.: Cooperative Movement in Russia, 1924 ______________:_____ Brightwill, L. R.: Animal "Co-op" Book— For Children ........................ Chase and Schlink: Your Money's Worth, A Book for Consumers ................ Flanagan, J. A.: Wholesale Cooperation in Scotland, 1920 ........................ Gide, C.: Consumers' Cooperative Societies, American edition and notes, 1922, Cloth Hall, Prof. Fred: Handbook for Members of Cooperative Committees ............. Holyoake: Rochdale Pioneers 1892 ....... Hough, E. M.: Cooperation in India 1932.... Indian Cooperation, Children's story ...... Jessness. O. B.: Cooperative Marketing of Farm Products ....................... Kress, A. J. iCanitalism, Cooperation, Com munism, 1932 ......................... Raivaaja Print—Fitchburg, Mass. Life As We Have Known It. Life stories of English guildswomen. telling what the Guild has done for them.. Madams, J. P.: The Story Retold ......... Nicholson, Isa: Our Story ................ Odhe, Thorsten: Finland, A Nation of Co- operators ............................. Oerne, -Andres: Cooperative Ideals and Problems ............................. Owen, Robert: Autobiography ........... Poisson, E.: The Cooperative Republic.... Potter, B.: Cooperative Movement In Great Britain 1891....................... ... Redfern, Percy: The Story of the C. W. S. Redfern, Percy: The Consumers' Place In Society. 1920 .......................... Smith-Gordon & Staples: Rural Recon struction In Ireland, 1918 ............ Smith-Gordon and O'Brien: Cooperation in Denmark ............................. Smith-Gordon and O'Brien: Cooperation In Many Lands, 1920 .................... Stolinsky, A.: The Cooperative Movement. (In Yiddish) ......................... Warbasse, J. p.: Cooperative Democracy, (1927) ............................... First edtion IS23, paper bound ........ Warbasse, J. P.: What Is Cooperation, 1927 Warne, C. E.: Consumers' Cooperative Move ment in Illinois 1926.................. Webb, B. and S.: The Consumers' Coopera tive Movement, 1921 .................. Webb, Catherine: Industrial Cooperation, 1917 .................................. Woolf, Leonard: Cooperation and the Fu ture of Industry ..................... Cooperation, Bound Volumes, 1915 to 1931 inclusive, each yeair ................ The People's Year Book, 1933, English, paper .75, cloth Year Book of The Cooperative League, 1932 $1.50 1.50 .IE 1.10 2.10 l.bO 2 50 1.10 3.75 .15 S.10 2.00 1.25 .85 .25 1.5t 1.36 .75 1.85 1.10 2.25 1.00 1.00 1.10 1.CO l.Ot 1.60 .50 .75 S.50 G.Ot i.et 1.65 1.25 1.35 .75 COOPERATION Organ of the Con- Movement in the sumers Coopera United States MAY 12 1933 Vol. XIX, No. 5 MAY, 1933 10 ce£l? A Few Figs and Some Thistles HPHE worker will continue to be a slave until he recognizes that his A. interests as worker are less important than his interests as consumer. • Capitalism has fed on the acquisitive instinct until it has a severe belly-ache; shall the workers imbibe the same poison? • The worker collects his wages not from the paymaster but from the grocer. When will he begin "unionizing" against the real exploiter? . • If the worker is poor, can he be sure that it is because he has received so little pay? Or is it because he has allowed the profit distribution system to take his wages away from him without a murmur? • The worker is paid only in the product of his labor, but after that product is ground through the wasteful mill of our distribution system, it looks like a snow man who has been dragged through hell with a rope around his neck. • The workers and farmers who have turned to Consumers' Coopera tion are cutting the costs of distribution and are thus steadily increasing the quality and quantity of that part of the product of their labor which is coming into their own hands. • The profit system of distribution costs the American people 30 billion dollars in 1929, over half the total retail bill. • Consumers' Cooperation is a boycott of the profit system. 82 COOPERATION COO PERATIO N An organ to spread the knowledge of the Cooperative Movement, whereby the people, in voluntary association, produce and dis tribute for their own use the things they need. Published monthly by The Cooperative League of the U. S. A., 167 West 12th St.. New York City.____________________ OSCAR COOLEY, Editor Contributing Editors George Halonen A. W. Warinner L. S. Herron Herman Liebman V. S. Alanne___________George Jacobson Entered as Second Class matter, December 19, 1917, at the Post Office at New York, N. T., un der the Act of March 3, 1879. Price $1.00 a year. Vol. XIX, No. 5 May, 1933 The Prostrate Consumer As Doctor Warbasse so aptly writes in this issue, "the consumers have been laid so prostrate that they are not able to get up and go to the store with their baskets to buy things. Kicking them in the ribs" no longer works. Our rulers and relievers have a blind spot to the obvious fact that the welfare of the country depends upon the wel fare of consumers, and that the con sumer is now down and out and no 'marked improvement in conditions can te expected until he is enabled to get to his feet. Whatever measures are taken will do no good and probably \vill do evil unless they aid the people as consumers. And yet, what do we find? Hardly a thing is being done for the consumer; on the contrary, and as usual, he is being taxed and penalized to the limit. Sales taxes are being passed or contem plated in dozens of states. The domes tic allotment plan, by which the ad ministration hopes to succor the farm er, constitutes a national sales tax upon the consumer, the proceeds of which will go to the producer to reward him for cutting down his production. Is this economics, or madness? However, it is only what the high tariff has done these many years, if that be any comfort. Steadily the R. F. C. feeds credit in to the banks and railroads, using the people's money to support tottering and outworn institutions. The banks all but crashed; a governmental hypo dermic saved them for the time being. Meanwhile the people, paying exor bitant freight rates, continue to sup port a criminally wasteful and extra vagant system of railroads. Amalga mation to effect economy is proposed, and straightway opposed by roads and workers alike, on the ground that it would effect economy! Are we indeed in a madhouse? The big navy boys as'k for a large appropriation, pointing out how much employment it will provide. Hire work ers to build ships and guns to blow other workers to hell! Blub-blub-b-b- b-bub-blub! This is the final absurdity of the "made-work" economics. "Made-Work" In less villainous form, this theory proposes to set men to work doing harmless things like planting trees, landscaping Muscle Shoals and build ing a few unneeded bridges. Every body who has a pet bridge to be built is urging Congress to build it with public money, saying "See how much em ployment this would provide." We have a bridge that we should like to have built. It's across a gully out in New Jersey where we went blueberrying once. We got our feet wet. We probably won't ever go blue- berrying there again and maybe no body will, but that isn't the point. To bridge that gully would give employ ment to about 5 men for a month. We estimate that there are 99,999 such gul lies in the country, and each one of them ought to have at least one bridge, which would mean a month's employ ment for 499,995 men, not counting the thousands of men required to fabricate materials and a few hundred women to cook their chow and polish their nails. And when the month is up, we have another job for these men and that is to dip water out of the Pacific and car ry it across country and dump it into the Atlantic until the latter is full, and that will qive them employment in per petuity. Come to think of it, they might as well begin with the dipping job and not bother about bridging those gullies. COOPERATION 83 It is not recorded that the people of Egypt achieved economic salvation by building the pyramids. Some believe that these "public works" projects help in the redistribu tion of wealth. This is founded on the theory that the bulk of taxes are paid by the rich. This is not so; it is the working-class consumers who pay the taxes. Assuming that the bulk of revenue is raised by taxes on big in comes, it's a poor business man who does not budget his income tax as an "operating cost" and pass it on to the consumer in the price of his goods. An income tax is not necessarily a profits tax. We whine about the "high cost of distribution, but taxation adds mightily to the high cost of distribu tion. Call it a cost of distribution or call it abracadabra, the fact remains that the cost of running our government, with all its manifold appropriations, must come out of the wheat, coal, iron, lumber, cotton and other wealth which the workers of the country produce. And those workers who are employed at building bridges over gullies, yes, or running unnecessary railroad trains or counting money in wasteful and un necessary banks, are a dead weight on the backs of the workers who are pro ducing wealth. We already have a horde of parasites on the government payroll. Shall we add to them? The worker in the long run can be paid in only one coin: The product of his labor. If he produces bridges over gullies, he will have to eat bridges over gullies. Or he may be paid in the product of the labor of others, but then he is filching. The earth groans today because so many of its inhabi tants are filching. You Can't Get Away from This The consumer must be served. This is the law of common sense. We have flouted this law and the penalty is a world "depression." It is a depression which will continue so long as the world persists in flouting this law. Thus, from all appearances and from the acts and utterances of our pro- foundest rulers and relievers, it looks as if it would last a long time. We know of only one school of thought which appears to see these simple facts clearly, and that is Con sumers' Cooperation. Bedeviled by governments, heckled by the profit hogs, hampered by the ignorance and indifference of the proletariat, this school patiently labors toward the light. A Desirable Public Work One kind of public works we do favor is housing. Here the double ob jective of producing something which the consumers sorely need and of pro viding employment can be accom plished. There are laws restricting the number of cattle you can ship in a freight car, but none saying how many human beings a landlord can pack in to a one-room rabbit warren on New York's East Side. The R. F. C. has signified that it would loan funds for low-cost, slum clearance housing. The technique of cooperative housing has not only been worked out but worked. Lack of funds is the rub, but here are the funds. Shall we let the Fred Frenches and the other profit realtors grab them all off? Cooperative housing, partially fi nanced by the state or municipality, has proven the most practicable solu tion to the housing problem in Euro pean cities. Why not recognize this experience? "This is a great monument to co operation and I am proud that the Bowery Savings Bank has had a hand in it."—-Henry Bruere, president of the Bowery Savings Bank, speaking at the recent second birthday of Amalga mated Dwellings, New York coopera tive house, 231 families. A Letter to the Editor I have long been sympathetic with the co operative movement, but it is probably too sen sible and intelligent to have much following in this country. Harry Elmer Barnes 84 COOPERATION Help Wanted! Strange but true. We need help in getting more subscribers to COOPERA TION and so increasing the number of pairs of eyes who read the cooperative message. We want ambitious young men and women in every community to represent us, to dis tribute free sample copies to the people— they are now aroused and ready to read and act^-and to take subscriptions. The price is $1 per year or 50 cents for six months. You as our agent keep 25% as your commission. Send for Agent's Book and free sample copies. COOPERATION 167 West 12th Street, New York City. How Much Do You Offer the Member? One is impressed by the multiplicity of services and benefits which the London Cooperative Society offers its members. For example, foods in over 200 food stores, clothing and general merchandise in some 50 "depart mental" stores, milk from its own farm, coal, laundry, hairdressing, shoe re pairing, theatre and travel tickets, drugs, optical service, buses to hire, etc. In addition to the regular patron age dividend, a part of the surplus made on each member's trading is set aside to provide death benefits, the loan of surgical equipment in case of sickness, and treatment at a convales cent home. Also the member, through the "mutuality" club is entitled to pur chase articles like furniture on a week ly payment plan. In addition the fol lowing departments of the society ex plain the type of service offered: elec trical, catering, legal and estate. Also, the member is helped to save for spe cial needs, such as Christmas shopping, by a "stamp scheme." You buy 6d. worth of stamps whenever you shop in the stores and thus accumulate a fund. An extra dividend on purchases is paid during December to encourage this scheme. Probably we have not mentioned all, but these give some idea of the scope of this society. Can it be that there is some connection between the wealth of services offered and the fact that this is the world's largest (over 460,- 000) and fastest growing cooperative society? Indiana Figures Total sales of the Indiana Farm Bureau Cooperative Association in 1932 were $2,041,034, in 1931 $3,018,- 537. There was a large drop in volume of fertilizer and feed, a considerable increase in seeds, and a smaller increase in petroleum products. Volume of gas oline and kerosene increased from 15,- 261,995 gallons in 1931 to 16,152,229 gallons in 1932; oils increased from 332,924 gallons in 1931 to 370,808 gal lons in 1932. Net income in 1932 was $80,519 and in 1931 $199,278. The net worth of this organization, according to the report of General Manager I. H. Hull, is $300,000 and the net worth of some 90 affiliated as sociations is $700,000, "nearly all of which was accumulated during the depression." During the last 7 years, the county associations have returned to farmers more than a million dollars in patronage dividends. "In times past," said Mr. Hull, "we have boasted of our large cash patron age dividends. We should be ashamed of the record. We have paid out about a million dollars in cash and built up a net worth of $300,000. If we could have realized the whole significance of the movement, and if we could have shown our people the relative value of accumulated assets as compared to cash dividends, the order would have been reversed. . . We have many demands at the present time for services which are not possible because of our limited finances. This much we know, in the long years of strife which are to come, as we go out to do battle with the forces of profit and greed, in the end our relative position will be determined not by a historical record of dividends paid but by our accumulated financial strength." The Indiana cooperators have their eye on the goal of a cooperative bank ing system. This year they secured a change in the state banking law per mitting a single, central cooperative bank through which all of the credit unions in the state may clear their re sources, this bank to be owned and controlled by the locals much as the C. W. S. Bank in England. COOPERATION 85 Roosevelt and the New Deal By J. P. Warbasse TJ VERYBODY is happy about our -t-J new President. He stepped into the breach left by his befuddled prede cessor, and promptly took action. He has spoken more like a forthright hu man being than like a politician. The atmosphere of Washington has less of the deadly pall of ineptitude and chi canery than since the days of Grover Cleveland. To be rid of Hoover is alone enough to sweeten the situation. If Mr. Roosevelt were going to do anything at all, there is only one direc tion in which he can move. His back is against the wall of reaction, capitalistic privileges, and the protected profit ob session. This wall has been built by such as Hoover. It is the barrier that has stopped economic progress and demoralized the world. The Hooverian policy of giving more of the taxpayers' money to the bankers, who were res ponsible for the economic collapse, could not be nursued further. Hoover had done all of the silly things. There was nothing left for Roosevelt to do but what he did. He frankly stated that our banking system is a great racketeering business and is more respectable than the strong-arm method only because the bankers have got their game protected by law. Of course, he did not use these words; he hopes for reelection. But he has spoken with strength, such as Washington has not heard these many years. President Roosevelt will have to take real measures to relieve unemployment. He will have to promote public control of public utilities. He will have to see to it that the privilege of the bankers to do their personal gambling with other people's money is a bit curtailed. He will have to curb Wall Street gamb ling. And he must do many other things that will be for the good of the pub lic, because the established powers have followed just the opposite course. Everything possible has been done by Roosevelt's predecessors to bleed the consumers. They have been laid so prostrate that they are not able to get up and go to the store with their bas kets to buy things. Kicking them in the ribs no longer can be continued. The only thing that remains to do, is to get them up and send them out to the mar ket. Mr. Roosevelt has no choice. He will have to use his office to help the people, or he will go down with them. And the immediate help they need is to have some of the weight of privilege taken off their backs. We shall see the new administration doing, within limits, what it can to this end. And this will all be for the public good. The farmers are to be helped by giving them some two billion dollars for producing less, so that they can pay off their debts incurred as a result of the Government's demand that they produce more. In the end the farmer's problem will remain unsolved so long as the middle-men stand between him and the consumer, and so long as his produce is thrown into the gambling game. What is to become of the De partment of Agriculture, which has developed a splendid machinery for showing farmers how to produce more, remains to be seen. Perhaps, it will set its research laboratories at work rais ing the boll weevil, wheat rust, grass hoppers, and Texas cattle fever germs for distribution to agriculture. So long as we try to live under the profit system, the doctrine of scarcity must be maintained. Things have to be kept scarce. The industry in which the people get full access to any necessity collapses under this system. Air, sun shine, and water can not successfully be sold for profit—such a procedure would make the death rate too high. But we are still trying to live under the anomaly of keeping food, housing and credit in the profit category and con trolled by the principle of scarcity. Mr. Roosevelt is committed to the task of trying to make this system work. The .86 COOPERATION interesting fact is that everybody hopes he will succeed. Nobody has a good word to say for the orgy that existed prior to the fall of 1929. It is looked back upon as the .insane period. Values were false. Gambling had demoralized rich and poor alike. It is thought of as the age of the loss of reason. But everybody is quietly hoping that we shall have those very times re stored. Everything is being done to bring back that wonderful lost pros perity. That very period is hoped for again. Its return is the common prayer of the whole country. This is the state of society upon which Mr. Roosevelt comes. The ne glect of the consumer precipitated the calamity. The continuous neglect of the consumer will make recovery dif ficult. But every weight of oppression that is lifted from the consumer will help toward the recovery. Credit Unions Come Through Depression THE credit union is cooperation ap plied to credit. Each credit union is organized within and limited to a given group of people, such as the em ployees of a company, a local Farm Bureau or a cooperative society. It is self-managed, operating under state supervision, completely cooperative, supplying its members with (1) a sys tem for pooling common funds, from which pool (2) loans are made to mem bers for provident and productive pur poses, at fair rates, with the earnings all reverting to the members as divi dends on their holdings in the pool and as surplus. A sample of what cooperative credit can do in times of great stress is to be found in the development of credit unions among postal employees in 1932. The following figures are from the United States Postoffice Depart ment: At the end of 1931, there were 275 postal credit unions, with 49,037 mem bers, and assets of $5,078,874. One year later there were 298 such credit unions, with 57,636 members, and as sets of $6,167,546. Total loans made in 1932 were $7,388,300. Total loans made from organization of the first postal credit union in 1923 to Dec. 31, 1932 were $29,030,732. The greatest advance in 1932 was registered in the rural field, where now the three major national farm organiza tions—'the Farmers' Union, the Na tional Grange and the American Farm Bureau Federation—are all cooper ating both in the enactment of credit union laws and in the organization of rural credit unions. There are now approximately 2000 credit unions, in over 50 varieties, with approximately 300,000 members and resources between fifty and fifty-five million dollars. 457 new credit unions were organized in 1932. Except in 5 States (where the supervision is just as strict, except that it is in another state department) credit unions operate un der the same supervision and subject to the same rules as banks. In 34 of the 35 States which have an adequate credit union law, no credit union has been closed by a state banking depart ment, and in no state has a credit union organized by the Credit Union National Extension Bureau, financed by Edward A. Filene, (85% of all credit unions) gone through a process of involuntary liquidation. Only'two credit unions (old, community groups doing a building and loan association business) have required help from the Reconstruction Finance Corporation; both of these had frozen real estate loans. "The credit unions have come through the depression with the finest record to date for honest and efficient management under conditions of extra ordinary difficulty," states Roy F. Ber- gengren, secretary of the Bureau. "They have proved both the worth and the durability of cooperative credit." COOPERATION 87 Consumers' Cooperation in the United States By Oscar Cooley A survey of present-day cooperatives. Chapters I and II appeared in the Feb ruary and March issues of COOPER ATION. ANOTHER outstanding organiza tion in the Northern States League group is located in Sault Ste. Marie, Mich. The Soo Cooperative Mercantile Association This society, founded in 1913, has about 650 members and did a business of $686,514 in 1929. Its dollar volume had shrunk to somewhat less than $400,000 in 1932. A chain of 10 stores was operated in 1929; 6 are run now. In 5 of these stores credit is extended; one, located in the downtown district, is strictly cash-and-carry, with a lower scale of prices. This gives the cooper- ators a good chance to compare the advantages of cash and credit trading. In 1930 not less than 73% of total sales were on credit. This society is one of the few store societies which' pay a bonus to employ ees. Of the total net earnings of $27,- 214 in 1931, $4,731 or 17.4% was paid to employees as bonus. Last year, member customers received a patron age dividend of 8% and non-members 4%. Employees who were also mem bers received 8% of their total wages as bonus and non-member employees received 4%. Owing largely to good management, this society has enjoyed conspicuous business success; indeed it is one of the few typically American groups operating stores which has succeeded. Its members follow a variety of trades, a number being government employ ees. As an educational and cultural force in the community, the society is not forward, nor does its membership show any marked increase. The Franklin The Franklin Cooperative Creamery Association of Minneapolis, Minn., arose in 1921 out of a situation in which both worker and consumer were being exploited by profit milk dis tributors. While the milk consumer got little for his money and knew it vaguely, the milk wagon driver got little for his work and knew it acutely. The driver struck and then asked the consumer to strike too. The result was the Franklin, a cooperative of 5000 members (now somewhat less), the largest milk distributor in Minneapo lis, doing business of $3,442,291 in 1929. This had dropped to $2,639,854 in 1931, due to the sharp fall in retail milk prices. Both consumer and worker have benefited since the Franklin has been in the field. Labor union condi tions prevail; in fact the society, like- many other consumers' cooperatives, is a bulwark for labor unionism in its community. The farmers, also, or ganized in the Twin City Milk Pro ducers Association and selling direclr to the consumer through the Franklin, have enjoyed better conditions. Two modern plants are operated. Ice cream and other dairy products are distributed. Besides retail deliveries direct to consumers, there is a con siderable wholesale trade through pri vate stores. Purchase rebates are not paid; instead the savings are passed on to consumers in the first price. For some time a majority of the board of directors has been employees. The latter appear to take a keener in terest in the institution than do the consumers. An active educational com mittee is constantly working to arouse more active participation by con sumers. One obstacle to this, the com mittee feels, is that shares are $100 each. This, it is claimed, prevents working-class consumers from becom ing members and prompts present members under stress of hard times to desire to redeem their shares. The Franklin is by far the largest milk dis tributing consumers' cooperative in North America. (Continued on page 92)= Statistics of Cooperatives Affiliated Name Cherry Farmers Coop, Assn. Iron Junction, Minn. Chisago Lakes Coop. Oil Assn. Chisago City, Minn. Cloquet Coop. Society Cloquet, Minn. Consumers Coop. Co. Hibbing Minn. Coop. Oil Assn. of Mille Lacs, Princeton, Minn. Coop. Oil Co. of Olmsted Co. Rochester, Minn. Duluth Coop. Society Duluth, Minn. Eagle Valley Coop. Oil Assn. Clarissa, Minn. Elanto Coop. Co. Nashwauk, Minn. Embarrass Coop. Assn. Embarrass, Minn. Farmers Coop, Co. Cromwell, Minn. Farmers Coop, Merc. Assn. Kettle River, Minn. *10 months figures. **8 months figures. —————————————————————— - ——————————————— 3—— Farmers Coop. Sampo Menahga, Minn. Farmers Coop. Society Little Swan, Minn. Farmers Coop, Trading Co. East Lake, Minn. Farmers Exchange Duluth, Minn. Finland Coop, Co. Finland, Minn. Floodwood Coop. Assn. Floodwood, Minn. Franklin Coop. Creamery Assn. Minneapolis, Minn. Freeborn Co. Coop. Oil Co. Albert Lea, Minn. Fulda Coop. Oil Co. Fulda, Minn. Lawler Farmers Coop, Assn. Lawler, Minn. Murray Co. Coop. Oil Co. Slayton, Minn. Orr Farmers Coop. Trading Co. Orr, Minn. Peoples Coop. Oil Assn. Plainview, Minn. Pine Coop. Oil Assn. Askov, Minn. *14 months report to July 30, Type Service Store Oil Store Store Oil Oil Store Oil Store Store Store Store Store & Oil Store Store Feed Store Store Store Milk Oil Oil Stores Oil Store Oil Oil 1932 No. Members 260 227 1737 292 143 733 363 467 620 502 324 304 438 68 127 450 108 302 4300 1285 200 300 410 389 196 342 Year 1931 1932 1931 1932 1931 1932 1931 1932 1931 1932 1931 1932 1931 1932 1932 1931 1932 1931 1932 1931 1932 1931 1932 1931 1932 1931 1932 1931 1932 1931 1932 1931 1932 1931 1932 1931 1932 1931 1932 1931 1932 1931 1932 1932 1931 1932 1932 1931 1932 Sales $37,952.28 30,837.64 39,384.50 44,289.15 495,382.95 468,780.27 57,931.73 54,606.15 20,842.28 44,020.52 136,438.99 174,651.95 42,272.89 36,058.28 66,099.11 102,448,87 62,562.95! 83,526.12 63,898.51 86,252.92 66,571.05 61,864.31 38,421.47 In a few cases it 119,794.36 102,467.50 24,412.31 21,454.09 28,805.95 22,740.01 44,896.13 36,744.75 29,641.16 25,729.75 72,751.47 69,920.55 2,639,853.87 1,990,338.51 223,365.65 197,959.14 30,706.95 22,688.55 59355.57 48,269.95 82,832.57 94,610.06 77,456.84 34,349.73 19,874.62 23,920.75 with the League Gross Gain Percentage 14.89% 14.71 30.0 29.0 15.02 15.37 17.99% 19.17 34.0 29.4 36.25 36.06 16.62 16.82 22.19 18.70 20.31 13.61 11.66 11.09 11.58 13.0 8,45 Expense Percentage 16.09% 16.02 13.07 21.5 12.34 11.79 17.05% 15.83 17.9 15.6 23.00 21.75 17.29 17.16 14.43 16.06 17.02 12.68 14.60 9.05 11.18 12.9 13.60 has been necessary to round 15.84 16.32 18.38 11.60 14.79 14.77 18.99 18.54 6.21 6.46 13.71% 16.02 2.07 -1.75 32.0 27.0 31.0 28.0 10.98 13.58 30.8 14.98 16.03 35.72 30.74 25.67 13.39 14.10 17.46 16.71 14.26 13.04 16.21 19.68 10.38 11.18 11.39% 11.32 50.31 58.07 18.0 19.0 17.2 17.1 13.97 14.13 29.0 13.28 14.24 22.90 16.72 13.29 Wage Percentage 9.10% 8.93 8.13 10.11 6.99 6.52 10.53% 9.58 14.0 11.0 16.0 16.0 10.88 10.83 7.58 9.31 9.02 6.87 7.65 5.40 6.15 8.0 6.4 Net Gam $480.12 -152.43 4,282.99* 2,737.56 14,036.66 15,570.07 531.86 1,400.77 3,624.16** 6,914.77 17,713.73 24,990.53 -637.61 -732.29 5,140.00 2,704.61 2,060.57 2,679.13 -966.74 3,512.75 1,787.74 1,987.32 -1,991.66 off or estimate figures. 7.72 8.60 10.11 9.21 7.15 6.52 18.99 18.54 5.61 5.70 6.91% 6.32 32.9 38.6 12.73 12.44 14.83 14.23 7.08 7.20 6.49 6.99 16.2 13.26 9.74 4,181.81 2,615.11 1,043.86 -681.77 2,499.63 836.88 756.80 -565.91 1,838.64 1,661.44 5,768.33 5,990.98 54,764.38 -34,935.59 30,442.10 16,685.88 4,231.11 2,474.39 186.26 565.45 2,251.07* 1,610.59 1,385.58 4,401.69 3,176.83 3,097.35 66 OO O O O t) to •S O O O O t) IS to •s 1-1 O * OO '•O Name Rush City Coop. Creamery Rush City, Minn. Scenic City Coop. Oil Redwood Falls, Minn. Tri County Coop. Oil Rushford, Minn. Union Mercantile Co. Isanti, Minn. Wawina, Coop. Society Wawina, Minn. Workers & Farmers Coop. Co. Two Harbors, Minn. Zim Farmers Merc. Assn. Zim, Minn. Biwabik Coop. Assn. Biwabik, Minn. Farmers Coop. Trading Co. Hancock, Mich. Farmers Coop. Trading Co. Pelkie, Mich. Northland Coop. Oil Co. Rock, Mich. Ontonagon Coop. Society Ontonagon, Mich. Republic Farmers Coop. Republic, Mich. * Report on Oil only. **5 months, Type Service Oil* Oil Oil Store Store Store Store Store Store Store Oil Store Store No. Members 300 297 72 209 175 95 45 837 152 2 societies 86 149 Year 1932 1931 1932 1931 1932 1932 1931 1932 1931 1932 1931 1932 1931 1932 1931 1932 1931 1932 1931 1932 1931 1932 1931 1932 Sales 15,301.31 77,742.17 74,176.11 18,069.00 35,282.58 29,348.62 46,249.35 42,819.09 69,758.00 47,306.95 26,909.73 22,589.73 28,775.65 30,124.84 168,243.90 139,746.29 73,319.91 55,243.17 19,285.47 20,175.07 20,379.13 27,827.41 38,486.95 31,864.31 Gross Gain Percentage 30.0 30.1 25.0 37.22 34.44 10.02 15.67 16.32 19.7 18.39 11.56 11.77 17.08 18.95 17.80% 17.66 10.51 12.0 18.92 18.33 16.27 13.22 13.79 15.03 Expense Percentage 17.36 17.0 16.5 19.75 22.54 21.04 13.31 13.39 17.4 20.89 12.18 13.25 14.75 14.45 14.60% 15.75 7.80 9.55 14.70 15.98 15.30 10.90 13.04 15.13 Wage Percentage 12.0 12.34 11.17 15.54 15.17 9.89 6.68 6.63 11.3 12.8 6.72 7.52 9.32 8.83 8.51% 8.53 4.43 6.05 9.98 10.75 8.62 5.98 7.60 9.30 Net Gain 2,029.87 8,650.74 3,472.61 3,182.64** 4,042.60 2,551.49 1,305.64 1,436.10 1,600.00 -1,200.00 669.38 33.82 7,400.00 13,300.00 4,803.35 2,690.95 2,720.88 2,837.90 734.91 1,074.24 307.75 675.01 777.07 -600.15 § O O o t*l to S ^ O ^ Rock Coop. Co. Rock, Mich. Rudyard Coop. Co. Rudyard, Mich. Settlers Coop. Trading Co. Bruce's Crossing, Mich. Trenary Farmers Coop. Store Trenary, Mich. Watton Coop. Store Watton 6 Covington, Mich. Brantwood Coop. Supply Co. Brantwood, Wis. Central Coop. Wholesale Superior, Wis. Farmers & Consumers Coop. Assn. Brule, Wis. Farmers Coop. Oil Co. Merrill, Wis. Farmers Coop. Merc. Assn. Iron River, Wis. Marengo Coop. Society Marengo, Wis. Peoples Coop. Society Superior, Wis. Polk Co. Coop. Oil Assn. Osceola, Wis. Prentice Coop. Supply Co. Prentice, Wis. Store Store Store Store Store Store Wholesale Store Oil Store Store Store Oil Store 575 204 386 223 150 271 98 232 309 445 335 431 300 229 1931 1932 1931 1932 1931 1932 1931 1932 1931 1932 1931 1932 1931 1932 1932 1932 1931 1932 1931 1932 1931 1932 1932 1931 1932 114,291.46 125,690.60 55,770.26 45,907.45 88,492.18 64,209.22 42,518.52 29,472.80 31,601.89 26,367.54 59,253.28 50,957.47 1,509,751.87 1,310,149.08 60,555.30 65,241.62 71,449.05 57,637.79 18,741.45 12,795.20 77,996.95 72,652.24 31,060.99 52,652.93 46,400.78 17.17 16.44 16.05 17.75 13.67 14.40 16.95 16.39 15.86 12.54 12.73% 10.56 9.10 9.03 11.85 25.71 12.19 10.67 11.26 16.75 17.37 16.62 30.3 13.35 13.57 15.74 14.98 13.15 14.53 14.48 16.06 16.02 15.31 12.56 12.53 11.10% 10.64 8.30 8.34 10.15 17.77 13.13 13.49 23.38 21.17 14.00 14.67 15.8 13.99 16.86 8.28 7.00 6.41 7.52 7.07 7.63 7.53 5.33 6.62 6.62 5.95% 5.90 5.96 5.98 5.90 12.0 6.85 7.35 8.2 7.61 8.78 9.26 11.8 8.1 8.3 4,286.00 4,100.00 2 192.10 1,479.84 Loss Loss 540.91 3.26 1,042.11 1.39 1,522.42 27.71 12,035.39 9,090.57 1,000.31 4,635.50 85.09 1,149.85 2,640.00 1,735.00 2,965.00 1,430.86 4,688.03 255.78 503.44 O O O "a t*i tt>. S O 92 COOPERATION Consumers* Cooperation in the United States (Continued from page 87) The Franklin has become something of a social and educational force. Out of it have grown an active Cooperative Women's Guild, cooperative youth clubs, a band, a chorus and a thriving credit union. An auditorium seating 600 in the North Plant furnishes a cen ter for meetings, concerts, amateur dramatics, etc. Classes in cooperation are regularly held. The Midland A good example of the spread of cooperative oil distribution among the farmers in recent years is given by the Mildand Cooperative Oil Association of Minneapolis. This is a wholesale composed of 69 local oil associations in Minnesota and Wisconsin. It was started in 1928 without a dollar of capital. The first purchases, four cars of gasoline, were made with advance checks from two local associations. Orders flowed in rapidly and capital has since been accumulated from net earnings. An oil storage and com pounding plant worth $40,000 was opened early in 1932. Total sales the first year were $269,862, the second year $417,956, the third $448,012 and the fourth $598,750. The increase in tonnage volume has been even more striking. In 1931 the gain in number of cars handled was 66%. Volume han dled increased 27J^% in 1932 and 18% in the first quarter of 1933. Tires and batteries are handled as well as gas oline, .kerosene and lubricating oils. Eighteen new local associations were organized in 1931 and month by month the "Co-op" sign appears over more and more gasoline pumps in this ter ritory. The Midland carries on active and continuous educational work. Four fieldmen are employed. Pamphlets on cooperation are published. An attempt to bring cooperative oil distribution "into town" was made in 1932 with the setting up of a cooperative oil associa tion in the university district of Min neapolis. The Midland leaders are typical of a new and growing class of American farmers who aspire to go "whole hog" with the cooperative pro gram. Both the Midland and the Central of Superior were among the mid-west ern regional wholesales that partici pated in forming a central cooperative purchasing agency during the winter of 1932-33. It is yet too early to predict the future of this organization, called the National Cooperatives, Inc., but through pool buying of petroleum products, it has already effected cer tain savings for its member whole sales. (To be continued.) • Cooperative Couplet Black or white, Yankee or Finn, We're all consumers under the skin Insurance Pointer No. 5— PUBLIC LIABILITY AND PROPERTY DAMAGE What does an Automobile Public Lia bility and Property Damage policy cover? Ordinarily it covers damages that the policyholder would be legally liable to pay himself if he were not insured—and it covers nothing else. Public Liability refers to damages to persons; Property Damage refers to damage to property. If the insured automobile is operated carelessly and hits someone who did not have a chance to get out of the way, then the injured persons would have a right to collect from the owner. By the same token, he can collect from the insurance company. If a man carelessly gets in front of an auto mobile that cannot avoid him and gets hit, he has nothing coming to him, either from the owner or from the insurance company. All policies contain certain exclusions, providing that the car is not covered when racing or when operated by someone under age. It is worth while to read your policy and see just when you are not covered. Most policies contain a clause extending the protection of the policv to people operating the car with the owner's consent. Public Liability insurance is the most im portant coverage for a motorist and Prop erty Damage is second. An uninsured fire loss of an automobile loses the car and that is all. An uninsured public liability loss may run into thousands of dollars and may break the man who has to pay it. A monthly insurance paragraph, con tributed by Clusa Service, Inc. The League's insurance service for cooperators. COOPERATION 93 Cooperative Insurance Society to Expand Field of Operations WHAT may prove to be a ihistory- making event too'k place recent ly when the Workmen's Furniture Fire Insurance Society, a workingmen's co operative institution affiliated with The Cooperative League, polled its 62,311 members on the question: Shall the So ciety be converted into a mutual fire insurance society, with power to insure homes as well as the contents thereof? The answer was, Yes. Of 28,865 voting, 25,070 voted yes, 3,722 voted no. Since it only required an affirmative vote of 75%, and the yes votes were 87% of all the votes cast, the proposition was adopted. It is ex pected that the Society will be reincor- porated under the name, "Workmen's Mutual Fire Insurance Society," Li censes will be applied for in all states. House insurance will not be under taken until general economic condi tions are better. Then separate ac counts will be kept and separate funds maintained for the house insurance. The members who have only their household goods insured in the Society will not have to bear any of the ex pense connected with the house in surance. This is the 61st year of the W. F. F.I.S. There probably is not a sounder corporation, cooperative or otherwise, in the country. Nor one that in its field is more helpful to the consumer. Its as sets total over $1,000,000 and insur ance in force $78,000,000. Quite dif ferent from private companies, it has one rate only, irrespective of locality or character of dwelling. The annual assessment is but 10 cents per $100 of insurance. Every policyholder is a member and Jias one vote. Membership is open to all. There is a branch in practically every large city in the East, 90 branches in all. With age some institutions get senile and unprogressive and cease to grow. This cannot be said of the Workmen's. During the depression year of 1932, it won 5,024 new members, a record number of new members for any one year. It is interesting that in 1932 total lapses for non-payment of assessments were 787, which is less than the av erage loss in so-called prosperity years. Insurance in force increased $3,500,000 in 1932. This increase would have been greater, states N. Marquer, executive secretary, were it not for the fact that an unusually large number of members have reduced their insurance, either through disposal of part of their house holds by removal to smaller apart ments, or because lack of employment compelled them to withdraw part of their deposits, thus reducing the amount of their insurance. (Each mem ber makes a deposit of $1 per $100 of insurance). Naturallv, the scope of service of the Society will be immensely widened by extension into the field of house insur ance. Mutualization will not mean any change in policy. "We will strictly ad here to the high ideals upon which the Society has been organized," says Mr. Marquer, "namely, a cooperative in surance institution offering protection against fires at the lowest possible rate and maintained for service instead of profit." This is a bold and forward step, ex hibiting real vision and zealousness for the workingmen's cause on the part of the leaders of the Workmen's Furni ture Fire Insurance Society. In 1931 there were 312 assessment life associations and fraternal orders providing insurance benefits, which collected $202,624,287 in assessments and dues, paid $141,876,226 to policy- holders and wrote $802,831,292 of new life insurance. On Dec. 31. 1931 they had total assets amounting to $917,612,299, with insurance in force totaling $7,618,708,779. 94 C O O P E R A TI O N What's New Eastern States Societies to Hold Convention in Lawrence Lawrence, scene of many a bitter struggle of oppressed workers against the exploitative system, will be the location of the 1933 convention of the Eastern States Cooperative League on May 21st. The Workers' Coopera tive Union, 112 Newbury Street, which has an excellent hall over its place of business, will be host to the conven tion. All member societies are expected to send delegates. Non-member societies, farmers' purchasing or marketing co operatives, labor unions, fraternal so cieties, credit unions and other non profit organizations are urged to send fraternal delegates. Methods of increased joint action to better the economic conditions of con sumers will be discussed. The Eastern States League is made up of 40 societies in the New England states, New York, New Jersey and Pennsylvania, numbering 19,000 in dividuals. Turnover in 1932 was a little under $4,000,000. Farband Has Rent Relief Fund A "Rent Relief Fund" supplies at least a partial answer to unemployment distress in housing cooperatives. Such a fund is successfully handled by the Farband Housing Corporation, a co operative affiliated with the Eastern States Cooperative League. The Far- band has two modern apartment dwell ings, housing 128 families, in the Bronx, New York. Rents average $9.83 per room per month, which meets all carrying charges including amortiza tion on the mortgage. The houses cost about $600,000, one third of which sum was paid in by the tenants themselves in 1928 when the buildings were con structed. About a year ago a voluntary Rent Relief Fund was established. Now an additional sum of $1.00 monthly on each apartment will be set aside in the Rent Relief Fund to aid those of the cooperators unable to meet charges. Cooperators can apply to the Rent Re lief Fund for loans without being charged interest for the first several months, and a nominal interest there after. Most of the residents in these dwell ings are engaged in industry. Some few have small businesses. Others are following professional careers. It is a true cross-section of life in New York. "This enterprise shows what can be done by people of small means if they sincerely espouse the cooperative plans," states Harry Danziger, the manager. "We are able to maintain cultural, educational and social activi ties of a high order without any extra charge to the residents. We have re cently been able to install modern refrigerating units in most of the apart ments, and we expect in a short period of time, to so equip every apartment in the buildings. Some day we hope to be able to establish a cooperative laundry, grocery, butcher shop and other enter prises for the needs of our people." • Get Socialist Support The New York City convention of the Socialist Party on April 1st unani mously adopted a report by a Commit tee on Cooperatives, headed by W. T. Hade, calling for the establishment of a permanent committee on coopera tives, education of party members in the principles and practice of coopera tion, and an appeal to all members to support the cooperative movement. Co operative League speakers have been invited to appear before a number of Socialist branches in and about New York recently. • No Failures In Massachusetts building and loan associations are called "cooperative banks." William R. Landers, president of the Mass. Cooperative Bank League, states, "All of the 227 cooperative COOPERATION 95 banks which were doing business in March, 1929, are doing business to day." • In 1930 there were 11,777 building and loan associations in the United States, with 12,350,928 members and assets of $8,828.611,925 or $714.81 per member. Going In for Education Indiana is to have a series of 5 one- week summer schools, conducted un der the direction of the Central States Cooperative League and with the backing of the Indiana Farm Bureau Cooperative Association, beginning May 21. The first three sessions, run ning from May 21 to June 10, will be held at McCormick's State Park, Spencer; and the last two will be at Lakewood Lodge, near Warsaw. The program, which is the same for each week, is similar to that of the C.S.C.L. Summer Institute which has been so successful in past years and which this year will be held near Cleveland, O., in July. The local Farm Bureau organiza tions will furnish students, and leaders in Indiana's flourishing farm coopera tive movement will assist A. W. War- inner and Edwin C. Palmer of the League in giving instruction. Every evening there will be a campfire ses sion accompanied by songs, stories and other entertainment. • Convention Dates Set The 1933 convention of the North ern States Cooperative League will be held at Cloquet, Minn., the home of the strong Cloquet Cooperative So ciety, Sept. 11-12. Preceding the con vention, on Sunday, Sept. 10, a co operative women's conference will be held. • Large Wholesale Joins League The Farmers Union Central Ex change of St. Paul, Minn., cooperative wholesale having about 100 member locals and 25 branches, was admitted to membership in the Northern States Cooperative League on April 15. Other new members joining the League at this time were the Farmers Union Oil Company of Froid, Mont., and the On- tonagon Valley Cooperative Creamery Association of Bruce's Crossing, Mich., the latter as a fraternal mem ber. • To Hold Advanced School In place of the Cooperative Youth Courses held at Brule, Wis., the last two summers. Cooperative Advanced Courses, three weeks in length, will be held this year at Superior, Wis., from June 12 to July 1. These courses are for students 20 to 27 years of age who have shown their interest in Con sumers' Cooperation and who wish to prepare themselves to accept respon sible work in the movement. Each stu dent who is accepted will be financed from the Joint Course Fund raised by the cooperatives in that region. The Courses will be sponsored by the Central Cooperative Wholesale of Superior, Northern States Women's Cooperative Guild and Cooperative Youth League. Hold Your Calendar Orders The Cooperative League is planning to publish an attractive 1934 Calendar. All societies are urged to hold up their calendar plans until they have had a chance to see a sketch of the League Calendar, which will appear soon. The price will be about as in the past-—$12 per 100, $55 per 500. $100 per 1000. A Cooperative Calendar should hang on every cooperator's wall. Fraternals Would Take Over Illinois Life It has been proposed that fraternal benefit societies ta'ke over the business of the defunct Illinois Life Insurance Company. A state insurance official states that five such societies operating in Illinois which are 100% solvent, have assets of $64,706,000, insurance in force of $336,843,000 and 408,000 96 COOPERATION SOAP dental cream, mouth wash, cold cream, etc. cannot work wonders, and may actually be use less, directly or potentially harmful, or need lessly expensive. How can you know? The Bphraim method enables you to have technical knowledge of what you buy and to judge it competently for usefulness, quality, and cost? Every E,phraim Specification Product bears a label stating its ingredients. "Write for free "Guide to Scientific Buying" which describes 37 useful products for personal and household needs. JEROME W. EPHRAIM, INC. (Dept. 18) 91 Warren Street, New York policyholders, could easily take over this company. These societies are co operative in form and non-profit in operation. There are many of them throughout the country, with large membership and huge assets. • This Kind of Bank Doesn't Fail The 1932 report of the Common wealth Mutual Savings Bank of Mil waukee, which is a member of The Co operative League, shows total savings deposits of $1,288,918, dividend to de positors (4%) of $49,975, total earn ings $70,959, and total loans $1,014,- 247. This bank is 21 years of age. In the interesting report of the Secretary, C. B. Whitnall, one reads ". . we have never foreclosed, nor have we lost a loan." This bank does not promise to pay any specific rate of interest to depos itors. Instead, the accumulated depos its are loaned to people on homes; every six months the receipts of in terest on these loans are computed, the expenses of operation for the period plus the amount credited to the guar anty fund is subtracted, and the re mainder is divided pro rata among de positors. At first these dividends were 3%, then 3^%, and now are 4%. Mutuals have over 40% of all de posits in American savings banks. The American Bankers' Association esti mates that in the year ending June 30, 1932, all banks handling savings lost $3,925,898,000 in deposits, but the mu tual banks gained about $8,000,000. In the same period savings depositors declined over 7 million, but depositors in mutual banks gained 192,357, reach ing a record number of 13,432,139 on June 30. That Something More The other day as I sat meditating in a cooperative restaurant, my eyes wandered over to the wall and to a sign I had seen hanging there for some years. The sign reads: The principles of consumers' co operation. One man, one vote. Rebates on patronage basis. Limited dividends. Several days later I explained consumers' cooperation as I read it on that wall poster to a group interested in economic problems. One of them remarked that it was some thing like a mutual life insurance society; another something like a building and loan society. None of them found anything to object to in these principles. Purposely I told them no more of the co operative movement. They understood the principles, found nothing to object to in them, and will soon forget them. What more need be told than the prin ciples of cooperation to interest consumers in the cooperative movement? Publicity and educational directors, what can you say? The Professor Sever! Petman, formerly general manager of the Republic Farmers Cooperative Association of Republic, Mich., has iust accepted the posi tion of General Manager of the Northern Farm ers' Coop. Society of Cook, Minnesota. • Waukegan News At the last educational meeting of the Men's Cooperative Guild, J. N. Hautala led a discus sion on "Should the part-time workers join the Cooperative Unemployed League?" A resolu tion was passed that there should be no reason why the part-time workers should not join the unemployed in joint effort to better the living conditions of all the workers in general. It was also suggested that the Cooperative Unem ployed League should be in close contact with the existing labor unions. The opinion of the meeting was that even if the individual mem bers of the Unemployed League are compelled to work for wages less than the union scale occasionally at these times, whenever they hap pen to get hold of some odd jobs, the general trend of the League should be to maintain the prevailing wage scale insofar as possible under the jurisdiction of the League, and whenever there is work to be had for the League mem bers. At the business meeting on April 13th, Jack Liukku led the discussion on "National Co operatives, Inc." the new national cooperative wholesale, just under organization and incor porated under the laws of Indiana. At the next educational meeting, May 25th, Swen Skog-- lund will lead the discussion on "What Possi bilities we have for Cooperative Movement in this country." Old and new members—keep the dates in mind. "Uncle." COOPERATION 97 Cooperative Youth Spring Stirring in Fitchburg Evidence of renewed interest in the club's activities was noticeable at the last general meeting held April 14th, when a motion was made that \ve have our meetings twice a month instead of once as at present. Since our annual meeting comes in June, the matter was left un til then. A twelve-member committee to spread the knowledge of cooperative principles and dis tribute cooperative literature was elected. Mem bers were urged to subscribe to COOPERA TION and also to "The Cooperative Builder." Something that we've never had and always missed, was our own club orchestra. This has been lamented for a long time, and when the matter was brought up at the last meeting it met with such approval that one of our musi cian-members was unanimously elected to get all the musicians together. As we have quite a few in the club that are musically inclined, it will be an easy matter to get a large orchestra from our midst. The Massachusetts Youth League is busy indeed these days. April 16th they put on a whole evening's entertainment at Hubbardston, and the following Sunday in Fitchburg. The program included a speaker, vocal numbers, three short plays, monologues, etc. They are already starting to arrange for the summer festival, too. As this will be the first Inter-Club Festival it is bound to be interesting. It is a two-day affa:r, to take place some time in August, at Fitchburg. The clubs taking part are Hubbardston, Maynard and Fitchburg. The program includes two dances, a play, athletic exhibitions, etc. The Fitchburg Cooperative Club will have its own ball team this summer. As has been evidenced at our outings we have some good baseball players among us and therefore a good team is assured. At the present time we are taking part in indoor sports such as ping pong, pool, card parties and entertainments in the club rooms. One night a week was allotted to the girls Students of 1932 Summer School, Central States District for the use of the club rooms. It has been sug gested to us by the Fitchburg Women's Guild that we form an English-speaking Guild, com posed of some of our members and some of theirs. This matter was left to the above com mittee. This was suggested because some wo men would like to join the cooperative move ment in town, but feel that they are too old for the Youth Club, and are unable to join the Women's Guild because their meetings are conducted in Finnish. Mr. Kenneth Pohlmann, who has been lecturing to us on Cooperation, completed his course the last week of April. The lectures have been very interesting and well attended. We are all very grateful to Mr. Pohlmann for the time and effort he has spent. Our library has increased. The Cooperative League was kind enough to send us a number of books, for which we are grateful, as our library needed replenishing. Hoping to see the young cooperators at Lawrence, May 21st, in a large body. A. M. L. • Chicago Club Plans Photo Exhibit A Cooperative banquet was held at our store (Workmen's Cooperative Mercantile As- soc., 2653 So. Crawford Ave.) on April 22nd, but we'll wager that very few of our readers have ever attended one like it. The fellows owed an entertainment to the girls because the girls won our last membership drive. The program consisted of a movie on how to re duce, a style show with the fellows as models, and refreshments a la limburger and garlic sandwiches. Just clean, sweet entertainmenti Our club is getting along in fine shape. We are distributing copies of Dr. Warbasse's "What is Consumers' Cooperation?" to the members, having them read it and then dis cussing it at our next meeting. This present membership drive of ours is in full swing and despite having two teams pitted against each other to get new members, we will also have, as an incentive for new members to join, a trip to the Cafe Idrott on May 7th with the club footing the bill for all of the eats. (No chicken dinners allowed). Our Executive Committee sure is a wow at thinking up new projects for the club to work on. One of these is the bringing about of a photographic exhibit to be displayed in our store. Exhibits like this tend to make our store more attractive and also advertise the coopera tive idea. You will receive your copy of "The Co- operationist" very soon. The publishing date is Sunday, May 16th. The big task that is confronting us at present is putting our Minstrel Show over in a big way. The proceeds from this are to go into a fund to send students to this year's Central States Cooperative League Summer School at Cleveland. F. P. 98 COOPERATION 'What Does Cooperation Mean to Women^ COOPERATION 99 A Letter from the National Committee To the Women's Guilds Dear Sister Cooperators: "What Does Cooperation Mean to Women?" This is the title of an article by our editor which appeared in the March issue of our na tional monthly, COOPERATION. We became a bit suspicious that within the article is hidden a polite challenge. Anyhow, it is very essential that we accept this challenge. For instance, we might take this question from the opposite angle and say: "What Do \Vomen Mean to Cooperation?" The purchases of women, the typical consumers, are the life- producing force without which cooperation is a failure. When we become thoroughly en lightened, first, of the purchasing power of women, and of the guilds as the means by which that purchasing power may be strongly united and organized, then the field is fertile to cultivation. Our guilds will become torch- bearers that eventually will lead us to the road of emancipation from the everyday drudgery and monotony characteristic of the lot of wo man. Then gradually we will attain an insight of what cooperation will mean to women. The national Committee suggests that a reply to the challenge will be the only means of making our guild work better understood and of concentrating our experiences for the mutual good of all. The national Committee suggests herewith that the guilds do so in the following manner: that the secretary (or other guilds- woman to be selected) of each district, section or local guild compose a short article on "What Value the Guild has proven to Cooperation in our District." The title may vary. It may be a direct reply to the following questions: "What does cooperation mean to women? What do women mean to cooperation? Why a co operative guild?" etc. This suggestion is not by any means a prize contest but an appeal that you present the guild movement in your own way and words. The contributions will be published in CO OPERATION in the order that they arrive and we hope to have one short article published in each COOPERATION, at least to tbe end of the year. Let us take into consideration that the Co operative League congress last September wholeheartedly endorsed our recommendation for the furthering of a national cooperative guild movement. Let us now prove that we are worthy of that trust. Guilds, elect your correspondent for the .above purpose at your very first meeting, if your secretary does not voluntarily accept it. We hope to receive all contributions during the month of May. Send them to the National Co operative Women's Guild Committee, 167 West 12th Street, New York City. N. C. W. G. C. New York District: The Brooklyn Guild celebrated its first anniversary on March 9th, with an elaborate program. The annual report testified to many achievements, the out standing one being that through the effort of the guild they now have two guildswomen on the board of directors of the Brooklyn Co operative Finco Bakery. The guild was or ganized with 13 members and at the present time boasts of 92. We wish you further prog ress. Virginia Hill • Minneapolis Guild Activities Every fall, about November, the Cooperative Women's Guild of Minneapolis holds a bazaar, starting at noon and lasting through the eve ning. The proceeds are often as high as $300.00. A large part of this is placed in the Milk Fund. Milk books are donated from this fund to the deserving poor. Financial assistance is also given to 10 of the most deserving families. The Guild also has a Flower Fund. Chances, costing 5c each are sold at the Guild meeting for a prize donated by one of the members. The winner of the prize buys one for the next meeting and the nickels collected are placed in the Flower Fund. Meetings are held the 2nd Wednesday of each month. Refreshments are served after the meetings. The women take turns in bringing cake and sandwiches. The Guild is a Fraternal Member of the Northern States Cooperative League. It con tributes both to the N. S. C. L and the national League. The dues of the Guild are only lOc per month. The Guild has a legislative committee, which attends sessions of the legislature and reports back to the members. Jennie Sammeli BOOKS A GUIDE THROUGH WORLD CHAOS, by G. D. H. Cole. Alfred A. Knopf. $3.50. This is a thorough examination of all the economic and political factors that have brought us to the present pass. Mr. Cole is a reader in Economics at Oxford University and a member of the economic advisory council to the British Government. He gives special emphasis to conditions in tbis country and Great Britain, but does not overlook the inter relation of the whole world, economically speaking. The analysis is impartial and it is not until the very last chapter that Mr. Cole expresses his own preference for a Socialist State. He gives the Co-operative movement its due as a democratic organization and an alternative to Capitalism, but his own opinion is that while Cooperation has grown steadily it does not offer a serious threat to Capitalist dominance. The book is a real reference book on present economic conditions. Any one interested in economic conditions will 'Ind it useful and informative. Adolph Ikle. • Technocracy for the Consumers 100,000,000 GUINEA PIGS, by Ar;hur Kal- let and F. J. Schlink. Vanguard Press, $2.00. Technocracy has presented us certain valu able information as to the progress of tech nique, "100,000,000 Guinea Pigs" presents just as amazing facts about the distribution of man ufactured goods. This book is a valuable com panion book for "Your Money's Worth" and "The Tragedy of Waste." Every consumer should have these books and study them. They reveal the rottenness of the present system of distribution and pro duction. Everything is sold for the purpose of getting profit. Consumers' health is not taken into consideration. Manufacturers will pro duce poisoned goods and retailers will sell it— if there is a profit. This book gives us glaring examples. It is a revelation. But it is only the diagnosis of the situation. The last chapter is lacking. And that should have been entitled, "Consumers' Co-operative Movement." All co-operators should read it and then in practical work supply that lacking chapter. George Halone.i The Canadian Cooperator Brantford, Ontario, Canada The organ at the Canadi-in Coopera tive Movement, owned by and con ducted under the auspices of The Cooperative Union of Canada. Published monthly 75c per annum FIRE INSURANCE ON YOUR FURNITURE SAFE-ECONOMICAL-COOPERATIVE WORKMEN'S FURNITURE FIRE INSURANCE SOCIETY 227 East 84th St., New York, N. Y. Member of The Cooperative League of the U. S. A. Under supervision of N. Y. State Insurance Department. The Cooperative Builder The official organ of Northern States Cooperative League Central States Cooperative League Central Cooperative Wholesale Midland Cooperative Oil Association An interesting and lively cooperative journal published semi-monthly at Superior, Wis. Subscription rate $1.00 per year. CENTRAL COOPERATIVE WHOLESALE Superior, Wis. NEW ERA LIFE ASSOCIATION Affiliated with The Cooperative League of the U. S. A. All standard forms of Legal Reserve life insurance contracts written. We can insure you by mail without medical examination. Cooperators. patronize your own insurance society. For full particulars clip this coupon. New Era Life Association Grand Rapids, Mich. Without obligation send me information concerning your different certificates: Name ___________________________ Address -Age: G, 116 COOPERATION STUDY CONSUMERS' COOPERATION The books and pamphlets listed below are available through The Cooperative League. Read them and pass them on to your friends HISTORICAL Per Copy Per 100 38. Consumers Cooperation in the United States (illus.), 1930.... .10 8.00 69. Story of Toad Lane (By Stuart Chase) ...................... .05 4.00 TECHNICAL 4. How to Start and Run a Rochdale Cooperative Society .......... 6. Model By-Laws for a Rochdale Cooperative Society .......... 39. Credit Union Primer (By Ham and Robinson) .............. 61. Model Lease for Cooperative Apartment House ............ .25 15.00 .60 .10 .10 06 .02 .05 .85 2.00 MISCELLANEOUS 16. Model Co-op State Law ........ 36, "When the Whistle Blew" (Story, by Bruce Calvert) .......... 67. How a Consumers' Cooperative Differs from Ordinary Business «2. Buttons (League emblem), % inch diameter ............... 63. Sign or Transparency of League Emblem. Green and gold, 8 in. diameter .................... .26 15.06 «1. Stock certificates, engraved, with League Emblem. Bound in books of 100, 200, or 250 S8. To Mothers ................... .02 1.00 10. Farmers' Cooperation, A Way Out: An address by L. S. Herron.. .05 4.00 72 "Little Lessons in Cooperation" 35 74. The Burden of Credit ......... .02 1.00 75. What is the Cooperative Store.. .03 2.00 76. What is Consumers' Cooperation .05 4.00 77. The Most Necessary Thing in Life ......................... -02 1.00 78. Are You Sure You Are Getting Your Money's Worth ........ .02 1.00 79. There Are Two Sides to Every Counter ...................... .02 1.00 30. Consumers', Credit, and Produc tive Societies, Bull. 631 of the Bureau of Labour Statistics.. .25 81. Cooperative Youth Songs ...... .25 82. "What Cooperation means to a de pression-sick America ........ .03 2.00 83. What is the Cooperative League 84. The Coop. Movement, J. H. Dietrich .OB 4.00 "What Consumers' Cooperation Means to a Depression-Sick America" Try it on your depression-pick friend A new leaflet, mostly pictures 3 cents per copy, $2 per 100 We also recommend "What Is Consumers' Cooperation?" by Dr. J. P. Warbasse. A clear, concise definition. 5 cents per copy, $4 per 100 Order from The Cooperative League Raivaaja Print—Fitchburg. Mass. MONTHLY PUBLICATIONS Cooperation—(In bundle lots, $7.60 per hundred). Subscription, per year (foreign, $1.25).... $1.00 REVIEW OF INTERNATIONAL COOPERATION (Pub. by the I. C. A.) ........ Per Year, $1.50 BOOKS The following books are recommended as con taining the best discussion of the mode) i Coopera tive Movement. They may be ordered through The League, postpaid as foliows: Ber^enprren. R. F.: CrPdit TTnion. A Cooper ative Banking Book 1931 .............. ?1.60 Blanc, Elsie T.: Cooperative Movement in Russia, 1924 _________________ 1.50 Brightwill, L. R.: Animal "Co-op" Book— For Children ........................ .16 Chase and Schlink: Your Money's Worth, A Book for Consumers ................ 1.10 Flanagan, J. A.: Wholesale Cooperation in Scotland, 1920 ........................ 2.10 Gide, C.: Consumers' Cooperative Societies, American edition and notes, 1&22, Cloth 1.&0 Hall, Prof. Fred: Handbook for Members of Cooperative Committees ............. 2.50 Holyoake: Rochdale Pioneers 1892 ....... 1.10 Hough, E. M.: Cooperation in India 1932.... 3.75 Indian Cooperation, Children's story ...... .15 Jessness, O. B.: Cooperative Marketing of Farm Products ....................... 2.10 Kress, A. J.:Capitalism, Cooperation, Com munism, 1932 .....I................... 2.00 Life As We Have Known It. Life stories of English guiidswomen, telling what the Guild has done for them.. 1.25 Madams, J. P.: The Story Retold ......... .85 Nicholson, Isa: Our. Story ................ .25 Odhe, Thorsten: Finland, A Nation of Co- operators ............................. 1.50 Oerne, Andres: Cooperative Ideals and Problems ............................. 1.35 Owen, Robert: Autobiography ........... .75 Poisson, E.: The Cooperative Republic.... 1.85 Potter, B.: Cooperative Movement in Great Britain 1891........................ ... 1.10 Redfern, Percy: The Story of the C. W. S. 1.26 Redfern, Percy: The Consumers' Place In Society, 1920 .......................... 1.00 Smith-Gordon & Staples: Rural Recon struction In Ireland, 1918 ............ 1.00 Smith-Gordon and O'Brien: Cooperation in Denmark ............................. 1.10 Smith-Gordon and O"Brien: Cooperation In Many Lands, 1920 .................... l.SO Stolinsky, A.: The Cooperative Movement. (In Yiddish) ......................... 1.00 Warbasse, J. P.: Cooperative Democracy, (1927) ............................... 1.60 First edtlon 1923, paper bound ........ .60 Warbasse, J. P.: What Is Cooperation; 1927 .76 Warne, C. E.: Consumers' Cooperative Move ment In Illinois 1926.................. S.50 Webb, B. and S.: The Consumers* Coopera tive Movement, 1981 .................. 6.00 Webb, Catherine: Industrial Cooperation, 1917 .................................. l.§0 Woolf, Leonard: Cooperation and the Fu ture of Industry ..................... 1.66 Cooperation, Bound Volumes, 1915 to 1931 inclusive, each year ................ 1.25 The People's Year Book, 1933, English, paper .75, cloth 1.35 Year Book of The Cooperative League, 1932 .75 COOPERATION Y Organ of the Con- Movement in the JUfl II •L •, - sumers Cooperative United Vol. XIX. No. 6 JUNE, 1933 10 cents IN THIS ISSUE Cooperative Unemployed Leagues Central Wholesale Annual Meeting Cooperatives at "Continental Congress' Consumers' Cooperation in the U. S. (cont.) 102 COOPERATION COO PE RATIO N An organ to spread the knowledge of the Cooperative Movement, whereby the people, in voluntary association, produce and dis tribute for their own use the things they need. Published monthly by The Cooperative League of the U. S. A., 167 West 12th St.. New York City.___________________ OSCAR COOLEY, Editor Contributing Editors George Halonen A. W. Warinner L. S. Herron Herman Liebman V. S. Alanne__________George Jacobson Entered as Second Class matter, December 19, 1917, at the Post Office at New York, N. Y., un der the Act of March 3, 18TO. Price $1.00 a year. Vol. XIX. No. 6 June, 1933 Steady Now In a time of confusion thrice con founded, both in what people are doing and in what they are thinking and say ing ought to be done, Consumers' Cooperation stands out crystal clear in its philosophy and method of action. As consumers we are down and out, and as consumers we must approach the job of getting back on our feet. Following the individualist road has caused us to get lost in the maze of this highly special ized society; to get out of the maze we must take the cooperative road. These things are clear and indisputable. Some despair of Cooperation, saying that it will take too long,that things are breaking up and quick relief is neces sary. The policy of these is to talk, talk, talk, and privately hope that when the break-up comes, they will be lucky enough to land on their feet. Mean while, the forecast break-up does not come, and one becomes convinced that all this talk about it is bosh. Two years ago, none less than Mon tagu Norman, governor of the Bank of England, said: "Unless drastic measures are taken to pre vent it, the capitalist system throughout the civilized world will be wrecked within a year. I should like this prediction to be filed for future reference." We did file it, Montagu, and now we are referring to it. The fear that a crash is near starts everybody hunting for a panacea. They don't find it. The crash does not come. The world continues to bump along sickeningly and unendingly on two cylinders, and three punctured tires. This yearning and searching for quick panaceas reminds one of Ponce De Leon seeking the Fountain of Youth. Wearily he trekked over many miles of rich and beautiful country looking for this mythical pond that was going to make him young again. He didn't find it. Meanwhile he might have carved out a fairly comfortable old age somewhere in that smiling land. Let those who seek a program accept the program that is here at hand, that has been fully tried and proven, that is simple, reasonable and acceptable to all, Consumers' Cooperation. Let no cooperator become impatient or be ashamed that his program works slowly. Let him throw out his chest and take courage in the fact that it works, it is just, rational, equitable, and that the panacea-hunters will have to turn to Cooperation sometime, come what may. • Straws Pointing Our Way When, at the recent "Continental Congress" in Washington, D. C., Townley pictured in glowing terms the ideal system under which the organ ized farmers would trade directly with the organized consumers in the cities, eliminating all waste and exploitation, he got a tremendous ovation. That was the picture that keyed the Congress to its high point of enthusiasm. And that, we would say, is the cooperative ideal. Utopian as it may sound, it is coming. It is the bright hope of the common people on farm and in city. We wish that every member of the working- class everywhere might have heard Townley's speech. We believe that if they had, they would have risen and cheered their heads off, as did the 4000 at this Congress. The minds of the people incline toward the very thing for which cooperators are planning and working. • The best minds verify the belief of cooperators that only through educa tion will our economic system be re- COOPERATION 103 made and our society revitalized. Prof. Harold Rugg, in "The Great Tech nology" (The John Day Co., pub lishers) sums up thus: "There is only the way of education—adult education, education of childhood and youth. The way of education is not sudden but slow; it is not revolutionary but evolutionary. It is possible, of course, that the tensions and fears of the present crisis may help us to precipitate an adult education movement that will sweep over the land with comparative suddenness. In deed, it appears that by no other method shall we be able to stave off arbitrary imposition of autocratic control either by an entrenched owning class or by an outraged and an equally intolerant proletariat. But it is clear that, in any event, the fundamental reconstruction will be achieved only by the development of a long time program of education reconstruction." • Another "straw pointing our way" is the type of utterance coming out of the churches. From many a pulpit the profit system is being savagely at tacked and a cooperative type of so ciety is being called for. In a resolu tion recently adopted by a conference of Methodists in New York, we read: "Our traditional philosophy of rugged indi vidualism must be modified to meet the demands of a cooperative age. \Ve refuse to recognize that unemployment and depression are inevita ble. Implicit in the Christian ideal of mutual aid are the possibilities of a planned society wherein production and consumption are prop erly related. This will involve also such a re distribution of wealth as to remedy the present gross inequity." There are over 11 million Metho dists in the world. We hope they all feel this way. Bargain-Hunters the Scourge Why does not the cooperative move ment forge ahead more rapidly? Be cause of the selfishness and short sightedness of cooperators. Many, many of them have not yet learned that to bring cooperation to, full fruition they must put their own personal, im mediate advantage in second place. They come to the cooperative place of business in the mood of bargain-hunt ers. If the bargain is not immediately forthcoming, across the street they go to the private trader, who may sell for a jot less, or give a little more credit, A penny saved today'—economic slavery tomorrow. But they don't see that. They live only in the present, as if there were no tomorrow. But there is a tomorrow, and there lies the Co operative Commonwealth. If today's cooperative movement is all we shall ever have, let us throw up the sponge. Especially, but not exclusively, in the farm cooperatives do we find the bargain-hunting attitude. Nine out of ten American farmers support their co operatives only if it nets them imme diate cash returns. They judge the co operative solely on a price basis. "Can I buy cheaper of the Co-op, or of Joe Profiteers?" It has not yet dawned upon the majority of American farmers that they will never get permanently better conditions until they build a co operative system to take the place of the profit system and that in order to build a cooperative system they must patronize their cooperatives religious ly, even at the sacrifice of a few cents of immediate gain. The goal is the thing; let us keep our eyes on it. There are a half dozen large farm consumers' cooperatives which, if a majority of their members could see co operation in this light, would put an entirely new complexion upon the movement. Similarly short-sighted is the co- operator who fails to specify the Co-op brand. Here it is simply a matter of taste. Co-op brands are as cheap or cheaper, as good or better (almost in variably better), than private brands. There is no reason for not buying Co op brands except that the buyer "is used to" a private brand, "thinks" it is better, "hates to change". Such per sons are allowing their petty whims to obstruct the progress of the greatest reconstructive movement of all time. Again, let us put first tilings first. We are playing for big stakes. We cannot afford to satisfy individual whims or to haggle over penny savings. A bill is passed forcing the security broker to tell the truth, but the broker of food, clothing and shelter may go on his merry falsifying way. 104 COOPERATION Central Wholesale May Buy New Bakery, Take Over Bank THAT supremacy in cooperative store development is still held by the Lake Superior region was again clearly proven by the attendance, spirit and accomplishments of the 16th an nual meeting of the Central Coopera tive Wholesale at Superior, Wis., April 10-11, 294 delegates, represent ing 70 store societies, having 26,844 members, were present. (The total membership of the Wholesale is 101 societies with over 30,000 members.) In addition were some 400 visitors. The financial position of the Whole sale was reported stronger than a year ago, with no debts on open accounts, a bank balance of over $12,000, current assets 2.63 times current liabilities, and accounts receivable appreciably re duced. The 1932 sales total of $1,310,- 149 is about 13% less than the 1931 to tal, but price drops being even greater, actually a larger volume of goods was handled. The Wholesale, which now operates a modern bakery in Superior, may purchase a still larger and more mod ern plant which a private baking com pany, following a strike and loss of trade, wants to sell. The purchase of a rural bank in Minnesota which could not make the grade under profit auspi ces is also being considered. Private banking has failed with such bad con sequences to all, a cooperative bank is needed, the delegates agreed. The ac tion of the Board in joining the recently organized National Cooperatives, Inc., an association of regional wholesales for joint purchasing, was approved. The incorporation of a .publishing asso ciation to publish "The Cooperative Builder" and "The Finnish Coopera tive Weekly" was authorized. Work to protect the cooperatives in legisla tive matters was voted. These were high points of the meeting. So great was the pressure of business at the meeting that an additional day was voted for next year's meeting. The showing of a film from abroad, "Coop eration in Sweden," was a feature of entertainment. Among the resolutions passed was one calling for the 30-hour week in in dustry, and the following which calls for income tax exemption for coopera tive associations of consumers who are not farmers: Ask Tax Exemption WHEREAS, certain types of Cooperative organizations are exempt from the filing of Federal Income Tax Returns under Section 231 (12) of the Revenue Act of 1926, and Section 103 of the Revenue Act of 1928, WHEREAS, the language of said acts and the interpretative regulations indicate that Congress intended to exempt cooperative asso ciations organized to act as marketing and, or purchasing agents for producers, WHEREAS, said act has been held not to exempt Consumers' Cooperative Associations from the filing of Income Tax Returns and the payment of Income Taxes, RESOLVED, that the stockholders of the Central Cooperative Wholesale, in annual meeting assembled this llth day of April, 1933, request the Senators and Congressmen of the States of Wisconsin, Minnesota and Michigan to use their best efforts to secure an amend ment of the Revenue Acts of 1926 and 1928, so that Consumers' Cooperative Associations would be exempt under said Revenue Acts, RESOLVED, further, that this annual meet ing instruct its officers to forward copies of this resolution to the Senators and Congress men of the States of Wisconsin, Minnesota and Michigan, in the hope that they will use their good offices to secure exemptions for Con sumers' Cooperative Associations as heretofore stated. • How To Avoid Mistakes The Farmers Union of Nebraska has set up an Auditing Department for the use of its member cooperatives. The committee in charge is C. McCarthy, manager of the State Exchange, Wal ter Burgess for the grain and oil divi sions, and Chris Milius for the Union. Milius states: "If an auditing depart ment had been set up in the early days, we would have avoided many costly mistakes." COOPERATION 105 Consumers' Cooperation in the United States By Oscar Cooley Previous installments appeared in our February, March and May issues. IV WE SHOULD not leave the Northern States League terri tory without reference to the district federations of cooperatives. These embrace a county or other natural dis trict, and their object is to draw to gether all consumers' cooperatives such as stores, oil associations, and credit unions, and producers cooperatives such as creameries and shipping asso ciations, within the district for joint ac tion, both in educational work and business relations. For instance, there is the Carlton County Cooperative Federation and the Mesaba Range Cooperative Federation, both in north ern Minnesota. There are 7 such fed erations in the Lake Superior country. A recent addition to the Northern States League membership is the Farmers Union Central Exchange of St. Paul This is a regional wholesale fathered by the Farmers Union, fraternal and educational organization. It supplies farm necessities, chiefly gasoline and oil, but also twine, tires and feeds in considerable volume, to local Farmers Union cooperatives in No. Dakota, Montana and Wisconsin. It has 100 member cooperatives, and 25 branches run from the central office. Its total volume in 1932 was $1,678,345.65. It has aggressive leaders and a live mem bership. Much of the promotional work is done by the Farmers Union, not only for this purchasing cooperative but also for its sister marketing coopera tives such as the Farmers Union Live stock Commission Company of So, St. Paul. To get the full advantages of dealing through these business organ izations, the farmer must be a dues- paying member of the Farmers Union. Passing now outside of the Northern States League district, we find a similar set-up in Nebraska, where the Farmers Union promotes consumers' coopera tion through The Farmers Union State Exchange of Omaha, a cooperative wholesale for the state of Nebraska; and marketing coopera tion through a Farmers Union grain company, livestock commission house and creameries, A cooperative insur ance company, the third largest, con sidering amount of insurance in force, of mutual fire insurance companies in Nebraska, is also sponsored. The State Exchange, which has over 200 local member associations, handled a volume of $1,192,837.91 in 1932. The Exchange also operates a large retail store in its headquarters at Omaha, and several branch stores, and does some mail-order business. Groceries and general merchandise are handled, as well as farm supplies. An auditing service for local cooperatives has re cently been started. Cooperation is a genuine program of reconstruction to these Nebraska farm ers. Constant educational work is carried on, through a thoroughly coop erative twice-a-month paper, and from the platform. "It will take a long time to reach the cooperative common wealth, but meanwhile cooperation pays as we go," expresses the philoso phy of these cooperators. The Farmers Union State Exchange is affiliated di rectly with The Cooperative League of the U. S. A. Another direct affiliate is the Grange Cooperative Wholesale of Seattle, Wash., which has 10 active member cooperatives amoncr the Grange stores in Washington. The Washington State Grange promotes cooperation as a part of its program in that state. Blasting powder is a leading item dis tributed. It is made in the Grange's 106 COOPERATION own plant. Oil distribution is also growing. Central States Cooperative League This League, with headquarters at Bloomington, 111., embraces Illinois, Indiana, Ohio and lower Michigan. It has 12 constituent member societies, which number 4500 individual mem bers. It furnishes its societies with legal, business and accounting service and advice, and operates a Joint Buy ing Department through which its member societies buy a variety of com modities, chiefly food products (about $20,000 yearly). Each year the League holds a Congress of cooperative so cieties and other non-profit, mutual aid organizations. A one-week summer •school is conducted annually to foster the knowledge of cooperative princi ples and methods. Six similar one-week schools are being instituted in Indiana in the summer of 1933. The League owns and operates its own printing plant where stationery is printed for member societies and where educational, publicity and propaganda matter is produced. Its official publi cation is "The Cooperative Builder," published at Superior, Wis. The largest society in this district is The Cooperative Trading Company of \Vaukegan, 111. This society has 2104 members, and nearly as many customers who are not members. It started in 1910 with milk distribution. Its first premises were a basement, and its first equip ment a horse and wagon, crude re frigerator and a few milk cans. It now has five meat and grocery stores, a bakery and a dairy with a large milk delivery system, and its volume in 1932 was $607,016.24. Although originally started by Finns, now only about 25% of its members are Finnish. Practically every element in the community is represented. The farmers who supply milk are members and in addition to rebates on their purchases at the end of the year, are paid an additional percentage oh their sales of milk to the society during the year. Thus the advantages of coopera tion are divided between consumer and producer. This practice has been no tably successful. This society is active educationally. It has a men's guild, women's guild, youth league, sports club and glee club; also a live credit union. Recently it has taken a leading part in the Cooperative Unemployed League of Waukegan. This League, with over 1200 enrolled members, is demonstrating to its mem bers how they can organize to protect their own consumer interests. The Co operative Trading Company has been affiliated with The Cooperative League since 1918. Other strong societies in the Central States district are the Waukegan-No. Chicago Cooperative Association, which has close and friendly relations with the Cooperative Trading Com pany, the Workmen's Cooperative Mercantile Association of Chicago, Workingmen's Cooperative Company and Slovenian Cooperative Company, both of Cleveland, and the New Coop erative Company of Dillonvale, O. A thriving society, not yet affiliated, is the North Star Cooperative Company of Fairport Harbor, O. All these are urban consumers' groups. A large farmers* group, not yet affiliated, is the Indiana Farm Bureau Cooperative Association. This is a state-wide wholesale serving some 90 local county cooperatives and carrying on an energetic educational program. Ohio and Michigan also have large farm bureau cooperatives, dealing together in many respects with the Indiana association. (To be continued) • What the Organized Consumers Produce The British cooperative movement has gone so far into production that any Briton can purchase cooperatively produced— Flour Wringers Tarn Wire Mattresses Soap Brushes Biscuits Galvanized Ware Tea Boots and Shoes Margarine Clothing Lard Drugs Furniture Cycles Pianos Prams COOPERATION 107 Cooperative Unemployed League Favored at Central States Congress A record attendance, plans for forming a district organization of women's guilds and also of youth leagues, the admission of two new members of the League and completion of plans for seven summer schools of one week each this summer were fea tures of the 7th Annual Congress of the Central States Cooperative League, held at Waukegan, 111., April 23-24. There were 94 delegates represent ing 10 member societies and 24 non- member organizations. Some 200 vis itors brought the total attendance the first day up to nearly 300. Plans were made to call a conference of cooperative women from all parts of the district in Waukegan some time in June, for the purpose of forming a dis trict federation of cooperative women and to encourage the formation of women's guilds in every society in the district. It was also planned to call a conference of the cooperative youth of the district to-meet at the same time for the purpose of forming a district fed eration of youth leagues and encourage the formation of youth leagues in con nection with every society in the dis trict. An entertainment and dance staged by the Cooperative Trading Company of Waukegan and the Waukegan- North Chicago Cooperative Associa tion at the Slovenian National Home brought out an audience of some 1,200 people. A splendid address was given by I. H. Hull, general manager of the Indiana Farm Bureau Cooperative Association. Cooperative Unemployed Leagues and their place in the Cooperative Movement were discussed. It was announced that the group of organiza tions that have developed in Wauke gan and vicinity during the past winter have been granted a charter by the State and have thus become permanent cooperative organizations. A resolu tion was adopted recommending that a committee be appointed to work out a plan for affiliating these organizations with the League and that the League take the responsibility of encouraging the organization of these Leagues in connection with every cooperative so ciety in the district. The four vacancies on the Board of Directors were filled by re-electing Ed ward Carlson and J. Liukku of Wau kegan, and R. J. Smith of Bloomington, to succeed themselves. J. C. Alien of Bloomington was elected to fill the unexpired term of Wm. G. Ross, de ceased. Edwin C. Palmer was elected president, Edward Carlson, vice- president, and R. J. Smith, treasurer. The Junior Cooperators of Chicago and the East St. Louis Cooperative Society of East St. Louis, 111., were ad mitted to membership. Unemployed League Assisted By Cooperative Society What an organization of the unem ployed can do to help themselves, when sponsored and assisted by a coopera tive society, is being proven by the Cooperative Unemployed League of Waukegan, 111., which was initiated last October by the Cooperative Trad ing Company of that city. This League now has over 1,200 members, doing many things for themselves coopera tively, from making sauerkraut to bar- bering. It has recently become in corporated. The Cooperative Trading Company donated the use of a building contain ing a hall, club rooms and basement for processing and storing foods. Others gave the fuel to heat the build ing. Meetings of the unemployed were called and the organization was started. Then the farmers around, as well as the city people, were canvassed for 108 COOPERATION what they would contribute. Over 60 tons of foodstuffs have thus far been secured and distributed. In addition, 3 cars of potatoes were bought in Wis consin, their transportation being do nated by the railroad. People are more ready to donate if they find that there is a responsible organization ready to see that the donations get to the people who need them. Funds are also raised by entertain ments, athletic games, dances and ba zaars, for which the use of halls has been given by local organizations. The cooperative Men's and Women's Guilds of the Trading Company have been especially active in such affairs. More than 100 families are obtaining free milk from a fund partly contrib uted by the employees of the Coopera tive Trading Company. The coopera tive bakery gives bread and rolls. Over 15 barrels of sauerkraut have been made and distributed by the League. Four hundred pairs of shoes have been repaired. Barbering is done on certain days at the clubhouse. Recently two dentists, four doctors and two lawyers have offered their services to the League. A special Grievance Committee hears complaints regarding the doling out of state relief and presents them weekly to the county authorities. The purpose of this is to see that the indi vidual has a group representation and thus is sure of getting a fairer deal. This Unemployed League carries on its affairs in a business manner, much as does any permanent cooperative so ciety. Each line of activity is governed by a separate committee, and the offi cers compose an Executive Committee. An Auditing Committee checks the books once every three months and submits a report to the members' meet ing. The use of 1,000 acres of farmland has lately been donated and plants have been started in local greenhouses, later to be transplanted to this land. This is one of the largest projects of the League. Educational meetings are frequently held where the how and why of co operation is expounded. News and Comment Gains in Depression "Our current assets in May, 1929. were $8,049.65," writes the Went- worth Farmers Co-op. Association of Wentworth, Wis., "and current liabil ities $14,095.15. In December of 1932 they were respectively, $9,286.01 and $9,633.67. This means that in 1929 our liabilities were $6,045.50 more than our current resources, and in Dec. 1932 the differential was only $347.66. Upon looking this over we find that our cur rent liabilities have decreased $5,697.84 during the last 3l/2 years of depression. Our sales have decreased slightly, but not in proportion to the per cent of de crease of the price of commodities, so that we can say that we have been able to hold our own in spite of all compe tition and attacks by all outside in fluences." Our Mission E. G. Cort, manager of the Midland Cooperative Oil Association, in a re cent address to employees hit the nail on the head, thus: "Service and merchandise without private profit, not imitating old-line capitalistic concerns, that is our mis sion. Let us use this distinctive feature of our cooperative enterprise with such emphasis, conviction and enthusiasm that every patron will know and feel that distinction. "You must get your members to see the significance, the social significance of cooperative business; emphasize quality and worth, not brands; sell lubrication and power, not empty ad vertising slogans; develop informed cooperators and discriminating con sumers, not blind, slavish victims for COOPERATION 109 the snares of capitalistic advertisements and profit taking. This cooperative movement will grow as fast as you men grow in leadership and cooperative vision. You will benefit with your neighbors and your community as con sumers' cooperation expands." • It May Grow A friend sends us an editorial from 'a recent issue of "Retailing." We read: American stores imagine that they have about all the troubles which can be showered upon them. But they are wrong. Either by good luck or bad they have missed one partic ular fly in their ointment which is in the un disputed possession of European stores. In England in particular the cooperative movement is a formidable competitor. W. Her man Kent, national secretary of the Federation of Grocers' Associations of England, recently asked for "a joint organization for common and immediate defensive action against the Coop erative Movement's definitely declared aim to eliminate private enterprise." He went on to give a number of methods by which the in dividual retailer can survive. The methods he suggests bear a striking resemblance to those urged here upon independent retailers in their battles with the chains, not the least of which is to be efficient in the conduct of their business. So far the cooperative movement has made little progress in America. But unless big store owners can get their overhead down to more reasonable proportions there is every possibil ity that it may grow. In fact, the hundreds of cooperative unemployment organizations throughout the country may be the nuclei from which these may grow. English department stores run and make a profit at an overhead of slightly over 20 per cent; American stores at over 35 per cent. Sooner or later this difference must be reduced. If not, there will be coopera- lives or some new form of competition. • Profits of the A. & P. The A. 6 P. grocery chain made net profits of $22,732,772 in 1932, as com pared with $29.792,974 in 1931. Total sales in 1932 were $864,048,257 as compared with $1,008,325,093 in 1931. There are now 15.427 stores in the chain, 143 less than a year ago. • Organize Educational Council The aim of the Twin City Cooper ative Council, which was recently or ganized, has 80 members now and hopes to have 5000, is "to carry on eductional activities relative to the Consumers' Cooperative Movement, Labor Economics and the Labor Union Movement." Its program is "to unite the consumers." Its goal is "Cooperation applied in every trade and industry, where the members shall produce and distribute for themselves, where all the earnings shall be distributed to the members ac cording to their patronage." Members pay dues of $1, and pledge themselves to give patronage to exist ing and future genuine cooperatives in the Twin Cities. Erich Wachter is president. Other cities should organize similar councils. Copies of the bylaws are available. • Seek $1 Members The 1933 campaign for Individual Members of the Northern States League has thus far netted 225. Dues are $1. To support the educational program of the League is especially important at this time, when the ears of the public are open as never before. Consequently individual supporters are earnestly desired. • Cooperative Library Chain A chain of "workers' cooperative libraries" is planned in Georgia, the aim being "to educate farmers and in dustrial workers for the cooperative commonwealth." Don West, co-di rector of the Highlander Folk School, is starting the first unit in Kenesaw, Ga. His father has given 20 acres of land. The neighbors will cut logs and build a cabin library. Later others will be built and books will be circulated from one to another. Meetings and lectures will be held at each library. • U. S. Sahlman, who was formerly manager of the Duluth Cooperative Society, has recently become general manager of the Republic Farmers Co operative Society of Republic, Michi gan. • The Co-op brand is spreading. Now you can buy Co-op chicks from the Washington Cooperative Chick Asso ciation. 110 COOPERATION Co-op Audits The average charge for 33 typical detailed audits performed by the Au diting Department of the Northern States Cooperative League was $101, while outside private audits, less de tailed, averaged $126. It pays to "buy cooperative," whether you are buying bread, milk, coffee, oil or audits. • At Maple Hill The Summer Institute of the North ern States Cooperative League will be held June 12-18 at Maple Hill Farm, on Lake Independence, 20 miles west of Minneapolis. The cost is $10 per stu dent. For one inexpensive w.eek of combined recreation and education, this can not be beat. • Hope This Committee Loafs The Board of the Northern States Cooperative League recently appointed a Grievance Committee of three to function in the event of any possible dispute between member societies. Hansen, Vandermyde and Nurmi were appointed. • Advertising Our Ideals The following is an advertisement of cooperative feed. It so well expresses the ideals of cooperative business that it might be applied to any goods or services distributed cooperatively. A COOPERATIVE FEED PRICE STRUCTURE FIRST, it should be predicated upon the market value of the merchandise, plus a service return that will guarantee the continuity of the business. SECONC. it should reflect the same basic price to all members, never should it grant a concession to one that could not be allotted to another. The granting of such concessions would eventually destroy the cooperative or unity idea. THIRD, the motive in arriving at a price basis should be to reflect the maximum in quality and quantity to the user, full measure pressed down and running over, and an absolute free dom from a resort to adulteration, substitution, or reduced quantity, in arrivinq at a price structure where multiple ingredients are in volved. It is readily apparent that such a policy brings about a linking of the economic and so cial problems of the day, that better conditions may manifest. To view economics from a pure ly commercial standpoint would be to leave the human equation entirely out of the scheme and would exalt the dollar at the expense of a com mon humanity. This would be the reverse of the Cooperative ideal. FEED DEPARTMENT WASHINGTON COOPERATIVE EGG 6 POULTRY ASSOCIATION • City Car Owners to Ride On Co-op Gas A Minneapolis Cooperative Oil As sociation is being organized, largely through the efforts of the Twin City Cooperative Council, A gas and service station has been opened at Fourth Ave. So. and 7th Street, with the help of the Midland Wholesale, and 500 gallons a day are being sold; 500 members have been signed up and 1000 is the goal. Shares are $10 each, with interest lim ited to 6%. Not more than 10 shares may be sold to any one person. The Central Labor Union and Farmer-La- borites are favorable. The toll of the profit oil concerns is enormous. The farm consumers long since rebelled and set up their coopera tives, which have been consistently successful. At last the city consumers are bestirring themselves, • This One Taxes the Temper Nothing could show up the absurdity of the sales tax more clearly than the recent ruling by New York State that the sales tax will be collected on barter deals as well as on exchanges involving the use of money. For instance, Shoe maker John seeks to barter with Farmer Bill—a pair of shoes for a pig, let us say. Neither have a penny of money. The first question to arise is: Who will pay the sales tax? Having settled that stumper, the next one is: In what coin will it be paid? The State wants neither shoes nor pig, to say nothing of 1 % of a pair of shoes or of a pig. If John and Bill are to be taxed somehow or other, (let the State figure that out) when they perform this bar ter, why not also tax them when they do not? Why not tax me when I put on my shirt, and you when you put out the cat? Sure, why not? COOPERATION 111 Cooperatives Represented in Continental Congress AN ATTEMPT to lay the founda tions of a unified workers' move ment, which may unite all common folk in "the building of a new economic sys tem of justice and freedom," was made when the "Continental Congress for Economic Reconstruction" met in Washington, D. C., May 6-7. Over 4000 attended representing socialist and other political groups, labor unions, farmers organizations, unem ployed leagues, fraternal societies, cooperatives and youth groups. Among the cooperative delegates present were Oscar Cooley, Coopera tive League of the U. S. A.; V. S. Alanne, Northern States Cooperative League; Arnold Ronn, Central Coop erative \Vholesale; Arne Halonen, New Era Life Association; Joseph Martinek, Workingmen's Cooperative Company of Cleveland; Frank Shil- ston, Sunnyside Cooperative Society of Long Island City; Sadie Rivkin and Sennie Katz of Brownsville Coopera tive Bakery, "Brooklyn; E. Brewster, Frank McCurdy and others from the Methodist Youth Cooperative Buying Club of Philadelphia; H. Winchester and R. Nugent of the New York State Credit Union League; Henry Puranen of United Cooperative Society of Fitchburq and J. J. Nylander of Coop erative Trading Association, Brooklyn. Each type of organization held a caucus. The Cooperatives and Edu cational Groups were thrown together into one caucus, with about 100 pres ent. This caucus elected a represen tative to each committee of the Con gress. Arnold Ronn was elected vice- chairman of the caucus. At the end of the Congress, Ronn was also chosen to represent the cooperatives on the per manent Committee of Correspondence and Action, of 26 members. A resolution of the Committee on Agriculture, on which Oscar Cooley served, favored encouragement of bona-fide cooperative marketing asso ciations and purchasing associations of farmers, and societies of consumers in town and city, which should purchase direct from farmer's associations inso far as possible, thus eliminating the waste and exploitation of the profit system. This was unanimously adopted by the committee and embodied in the report later adopted by the Congress. A Bond of Union Cooley held that Consumers' Coop eration should be strongly endorsed because "it is something which both city consumer %nd farmer practice and so forms a natural bond of union for all," and because "it is something which farmers practice to an even greater extent than city consumers, the consumers' movement being most fully developed among farmers in America, and so is a program the endorsement of which will tend to get the support of farmers." All agreed that one of the best things the Congress could bring about would be greater harmony and unanimity of action between workers and farmers. Other resolutions adopted by the Committee called for abolishing the in come tax on consumers' cooperatives, and for a cooperative educational pro gram by the Department of Agriculture and by the state universities and ex tension services. T. I. Smith, a farmer from New Hope, Pa., was chairman of the Committee on Agriculture. A stirring Declaration of Independ ence was adopted by the Congress, and a call was sent out for all to join in making this a permanent unification movement. State chairmen were ap pointed and each state was urged to hold a convention in the near future. It is planned to hold another Congress next vear. Emil Rieve, president of the American Federation of Full- Fashioned Hosiery Workers, was chosen permanent president. An Ex ecutive Committee of seven was ap pointed. 112 COOPERATION Make the Members Work A recent bulletin entitled "Selling by Em ployees" issued by the Policyholders Service Bureau of the Metropolitan Life Insurance Co., points out that in recent years an in creasing number of companies have been using "non-selling" employees to increase sales. This new method of selling has been an outgrowth of this line of reasoning. (1) "All employees have a certain number of rela tives, friends, and acquaintances;" (2) "If these employees can be converted into sales men and their friends into customers, the result will be profitable." One company es timated that even the humblest employee is acquainted with 50 or more possible cus tomers. Cooperative societies should use their em ployees in a similar way in bringing new customers into the cooperative store and in spreading the idea of consumers' coopera tion. But more than that, can't we make our members work? Can't we work out a plan of getting each member to bring a certain num ber of new customers or new members into the store or into the society? After all, mem bers are an asset which our private com petitors do not have. The Professor Cooperative Institute at Brookwood, July 9-15 The one-week Cooperative Institute of the Eastern States Cooperative League will be 'held at Brookwood La bor College, Katonah, N. Y., July 9 to 15. All cooperative societies and youth groups in the East are urged to send students. Dr. J. P. Warbasse is expected to give several lectures. The mornings will be occupied by. lectures and discussions. Sports, swim ming, tennis, hiking and just plain loaf ing will occupy the afternoon. An evening lecture will be followed by dancing, games, etc. A new feature of the program, it is expected, will be a bus tour of New York City, visiting the Amalgamated and other outstanding cooperatives in the vicinity. The cost is $16 per student, which includes room, board and tuition. Everyone who has ever been to Brookwood will testify that the Co-op Institute is a week profitably and pleasurably spent. There is no better way to spend a week of one's vacation. Brookwood is calling you! Two Good Bulletins On Farmers' Cooperation COOPERATIVE PURCHASING AND MARKETING ORGANIZATIONS IN NEW YORK STATE, by F. A. Harper. Bull, of Cornell Agricultural Experiment Station, Ith aca, N. Y. An excellent study of farmers' cooperation in New York State. Of the 181 cooperatives operating in this state in 1930, the major func tion of 97 was buying farm supplies. Total volume was $10,113,437 in 1929. The principal commodity handled was feed. The author states that the mortality among purchasing associations has been much less than among marketing associations. The figures on operating costs are especially interesting. Total expenses of purchasing asso ciations averaged 6.2% of net sales, as com pared with 12.2% for privately owned feed stores. Salary and wage costs in the privately owned stores were about 90% higher than in the cooperatives. In the latter they averaged 3-2%. As to credit policy, the author states that those cooperatives with a rate of increase in trade above average were much more conserva tive in credit policy than those whose rate of increase was below average. Comparative facts are given regarding the cooperatives that are centrally controlled (by the Grange League Federation) and those that are locally controlled. WHAT OHIO FARMERS THINK OF FARMER-OWNED BUSINESS ORGAN IZATIONS IN THAT STATE, by T. B. Manny. Bull, of the U. S. Dept. of Agricul ture. A personal interview with each of 1327 Ohio farmers to see what they think about their cooperatives, producer and consumer. Many interesting opinions are brought out. For example, 188 farmers testify that the great est accomplishment of the cooperatives has been that they have "compelled private agen cies to give the farmers better treatment"; that is, better prices and better goods; 1135 testify that the greatest accomplishment has been "financial advantage to users." There is strong testimony to the value of "meetings" as means of spreading information about cooperatives. The Farm Bureau News has been another important medium. We get the distinct impression that Ohio cooperatives—and this is probably true of farm co-ops in general—have fallen down in being too cold and "business-like" with members, and in not taking them into their confidence enough and seeking their participation and sense of proprietorship. COOPERATION 113 Cooperative Youth Plan Summer Festival A large gathering of Cooperative Youth will be seen in Fitchburg August 12th and 13th. At this time the Cooperative Youth League of Mass, will hold its first annual Summer Festival at the Saima Park. The two-day affair will start off with a dance Saturday evening, fun guaranteed. A special feature will amaze every one. During intermission, spot-light swimming and diving contests will take place. What could be greater than to see our famous swimmers stroke the glittering waters! Sunday will be devoted to educational and athletic activities. Everyone will be up bright and early to attend the inter-club baseball games and also inter-club horseshoe matches. By this time we will have worked up a good appetite and shall lunch until 1.30. The after noon's attraction will be an Educational Pro gram, where our leading cooperators will ad dress the Youth, followed by instrumental and vocal selections. Now for the athletic events. This will con sist of an inter-club tug-of-war and one-mile relay. Also a 3-event and five thousand meter race, open to all clubs, will be featured on the program. Something doing all day. Hope to see you all at the Festival. Bear the dates in mind. The League is also staging three one-act plays in Finnish, the first week in June, in Maynard and Fitchburg. Hubbardston, Maynard and Fitchburg will participate. In order to at tract our elders, they will be presented in the native tongue. The League has appointed delegates to at tend the E. S. C. L. convention at Lawrence, May 21st, and a large youth attendance is as sured. H. K. • Due To Go Ahead Every beginning is hard. We have made a beginning and we are holding our own. All signs point to a glorious future for Consumers' Cooperation. I feel that this movement is going to go ahead so fast that we will be hard pressed to keep up with it. A large number of supposedly "wise heads" in the "labor" movement have maintained that the U. S. A. will be the last stronghold of "entrenched capitalism." My humble but firm opinion—conviction, if you please—is that the U. S. A. will be the first Cooperative Nation in the world. Am I right? Let's have a discus sion! Emil J. Waaramaa, Fitchburg, Mass. • New Unit in Cleveland Another Co-op Youth League has been formed in Cleveland, among the youth of the Workingmen's Cooperative Company. Fifteen of the members of the thriving Slovenian Youth League, which has been carrying on a lively educational and social program for some time, attended the first meeting and helped organize. Among the speakers were Mamie Bokal, secre tary, and Rudolph Grosel, chairman of the Slovenian Youth League, and Joseph Martinek, president of the Workingmen's. The members of the new unit were invited to attend a meeting of the Slovenian Youth League the following week. The program in cluded a talk on the difference between a pri vate corporation and a cooperative, by An thony Nachtigal; a discussion assignment on the Cooperative League correspondence course "Principles and History of Consumers' Co operation"; and refreshments. The visitors took a real interest and plan to take up similar ac tivities. Margaret Elsner is secretary of the new Youth League. • To Hold Outdoor Meetings The Slovenian Cooperative Youth League plans to hold its meetings this summer outdoors, in Metropolitan Park, to avoid the heat. At a recent business meeting, Anton Bokal, Jr. reported on the Congress of the Central States Cooperative League at Waukegan, which he attended. Whether the boys or the girls will win the two months' Membership Contest, ending May 18, was not yet known when we went to press, but whoever loses will have to give the win ners a social. Last year the boys lost. Will the tables be turned this year? M. B. • Hubbardston Cooperative Club News We held another interesting meeting recently which consisted of the yearly election. The following were elected: President, V. Meri- kanto; Vice-President, A. Hannula; Secretary, O. Wagg; Treasurer, F. Rivinoja; Editor, K. Hannula; Chef, A. Hannula; Sports Mgr., K. Hannula; Sports Committee: O. Kujala, A. Hannula, V. Merikanto, K. Hannula. Educa tional Committee: V. Merikanto, O. Kujala. K. Hannula. Social Committee: L. Wagg, V. Ma- ja, F. Rivinoja, K. Hannula. Ninth member for the Board of Directors, C. Wanhala. Librarian, C. Wanhala. Auditors, G. Johnson, C. Wan hala. Three delegates, consisting of O. Wagg, R. Sutela, K. Hannula, represented the club in Lawrence at the convention. The first anniversary dance was held on Memorial Day. Prizes were awarded on ad mission tickets. The sports committee announces that all members wishing to form a horseshoe team will please report to E. Kauppinen, the captain. Al so those wishing to form a baseball team, re port to A. Ericson. The sports manager wishes to get in touch with other cooperative club managers to ar- 114 COOPERATION range games. In other words, we will challenge either Maynard or Fitchburg Cooperative Clubs, so let's go! We are sorry to say that our president, V. Merikanto, has been laid up in bed for two weeks because of water on the knee, but his doctor has reported that he will recover soon, so let's hope and wish he does. The Mayor • Waukegan Speaking First of all, lest someone forget, the joint picnic sponsored by the various auxiliary or ganizations of the Cooperative Trading Com pany will be held on June 25th. The Women's Guild, the Men's Guild, the Co-op. Youth League and the Co-op. Unemployed League have all cast in their full strength to make it a huge affair, and it is going to be just as big as we will and can make it, or—possibly still big ger. The entertainment held on April 23rd at the Slovenic hall in connection with the Central States Co-op. League Convention drew about a thousand people together. The Convention itself was quite well attended, but just imagine how these conventions would be if we had a cooperative society in every city, town and village in these states, as they have in many of the European countries. Let's all work to that end and apply a little more speed to it. A drive for subscriptions for the "The Co operative Builder" and other cooperative pub lications has been launched by the Educational Committee, ably assisted by the Youth League and Women's Guild, and the aim is to get at least one thousand subscribers during this drive. Waukegan and North Chicago have been divided into 16 sections and there is going to be a separate team working in each section to make the work more effective. The intentions are good and sincere—let's hear the results. • The Educational Committee is planning to get some more and new books for the library. The new books will be bought in the quantity the means warrant, and if there are some in dividuals among our members, customers and friends who can and are willing to donate us any books of value it will be greatly appre ciated. Any books pertaining to the cooperative movement, any science or art, labor movement, worthwhile fiction etc., will be gladly accepted. The Consumers' Mutual Aid Guild works in connection with the Central States Cooper ative League and provides life insurance at cost. Just drop into the office of the Cooperative Trading Company and acquire additional in formation on this matter of vital importance to everyone. Waukegan Cooperative Credit Union is gaining more members continuously, receiving the money from its members in form of shares and loaning the money to its members. We have 137 members at present. Fifty-seven mem bers have loans from the credit union at this writing. It may be noted that not one member so far has died from our credit union family since its organization so it really is a living or ganization. The members should remember the credit union not only when they need to bor row the money, but also when they have some to put in, because that is the only way the credit union keeps on growing. There are no funds except from the members. In this con nection we might mention, that the people of our neighboring town, Gurnee, may establish their own credit union in the near future. Wel come to the ranks and success be with you. "Uncle" An Appeal to Women In spite of the recurrent national and inter national crises, the Cooperative Movement of the world has made tremendous progress in recent years. This growth of the movement has roused its opponents to action, particularly those traders, manufacturers and combines who see their personal interests endangered. They, however, will not measure their strength in open competition against that of the Cooperative Societies. They call in the help of the State. They try to load the Cooperative Societies with heavy taxes so as to reduce the benefits they can offer to their members; in other countries they seek to subject the So cieties to laws which rob them of their free dom and self-government and place them in the power of their competitors; in some they have even gone so far as to attack the property of Cooperators. All reactionary parties and organ izations and those who are hostile to a new and juster order hate the cooperative societies for their constructive efforts to bring about a democratic economic system based on equality and common service in the interests of all. The times are grave; help and defence are needed. Only if women realize now that the future welfare and security of their children are at stake—that for their sakes we must replace the injustice and insecurity of the present order by one which opposes war and the exploitation of the many by the few and stands for the service of all—only then can we come out victorious in this world-wide struggle. Therefore we call upon all housewives and mothers to realize more clearly than ever how their daily activities, the fulfilling of their household tasks, can help to bring about this great transformation of society. More ardently than ever, too, must the cooperative message be preached. So we call upon you, Coopera tive women t who have already understood the signs of the' times, to see to it that the attack of the enemies of the Movement is broken by the resistance of the mothers. Redouble your efforts! Increase your mis sionary zeal! Call all your sisters together and tell them what you know! For the victors will be those, and only those, who can win the mass COOPERATION 115 of the people by showing them worthy aims. Let us then close up our ranks round the rain bow banner, and strive and labor for the triumph of the Cooperative ideal which unites the people of every land. In the name of the International Cooperative Women's Guild, Emmy Freundlich, President. A. Honora Enfield, Secretary. Notice A report of the annual convention of Eastern States Cooperative League, which was held in Lawrence, Mass., May 21, will appear in our next issue. Insurance Pointer No. 6— WHAT KIND OF LIFE IN SURANCE SUITS WHOM Of all the several hundred kinds of life insurance contract on the market, which one suits my needs? Nearly everyone has had to ask himself this question one time or an other. The first step toward finding the answer is to get the fact clearly in mind that there are only three things that a life insurance company can do with your money. First it can pay its own expenses.—commissions, clerk hire, office rent—that much is water over the dam, gone forever. Second it can pay current losses—this is insurance prop erly so called. Third it can put the money in the barik for the policyholder—this is in vestment or saving. The most important single difference in policies is in the relationship between the insurance part and the savings part of the policy. The common policy forms rank them selves about in this way, beginning with one that is almost pure insurance protection and ending with one that is almost pure saving: termed, "economic adjustment," ordinary life, long term endowment, short term endow ment, "income bond," retirement life income. Which 'kind suits an individual depends on his particular needs. A young man with small children needs protection first and foremost. Term or a combination of term and ordinary life is probably the best for him. An Unmarried woman with no dependents needs no protection beyond pravision for funeral expenses. Retirement income' is probably the best for her. Most of the rest of us fall be tween these extremes. A monthly ..insurance paragraph, con tributed by Clusa Service, Inc., the League's insurance service for Cooperators. t Pretty Raw British cooperative societies are dis tributing over 130,000,000 gallons of milk a year. 90% of this is bottled and pasteurized. The private dealers op pose pasteurization, saying that raw milk is better; but what they are really opposing is "cooperatization." The Canadian Cooperator Brantford, Ontario, Canada The organ of the Canadian Coopera tive Movement, owned by and con ducted under the auspices of The Cooperative Union of Canada. Published monthly 75c per annum The Cooperative Builder The official organ of Northern States Cooperative League Central States Cooperative League Central Cooperative Wholesale Midland Cooperative Oil Association An interesting and lively cooperative journal published semi-monthly at Superior, Wis. Subscription rate $1.00 per year. CENTRAL COOPERATIVE WHOLESALE Superior, Wis. FIRE INSURANCE ON YOUR FURNITURE SAFE-ECONOMICAL-COdPERATIVE WORKMEN'S FURNITURE FIRE INSURANCE SOCIETY 227 East 84th St, New York, N. Y. Member of The Cooperative League of the II. S. A. Under supervision of N. Y. State Insurance Department. 132 (OOPERATION business a cooperative society does not dictate to its members what they shall consume. They are at liberty to satisfy their desires elsewhere. Cooperative societies are as much interested in teaching consumers what they should consume as in being the means of satisfying their de mand for merchandise and services. In the early days of Cooperation, poor people had their tastes so vitiated by adulterated flour produced for profit that many of them revolted against the pure product supplied by a cooperative flour mill. Cooperators did not, however, revert to adulteration as the line of the least resistance. No cooperative society worthy of the name would, for example, operate a vicious picture show because a large percentage of vicious people called for that kind of "entertainment." I do not think any cooperative society in Canada sells beer. Distribution is under legal control in the various provinces, but the method followed differs to some extent in each. No co operative society handling beer could impose the legal restraint upon excessive consumption possible to a government. E. A. Rosenthal 1. Purely of business. It is only in the good old LI. S. A. that anyone could conceive the idea that the sale of beer raises a question of ethics, any more than the sale of bacon, blue- berries or bicarbonate of soda. 2. It is for the members to decide fwhat they shall consume. " 3. Within the limits of business possibilities, the cooperatives should follow strictly the prin ciples of supplying what their members as con sumers demand. 4. The percentage who demand something should be large enough to make the sale pay. 5. Not to any extent should cooperatives attempt to educate the demand of their con sumers; let cooperatives "educate" their mem bers in the thorough understanding of Con sumers Cooperation, and they will have a man- size job. 6. The cooperative with which I am con nected does not sell beer, to my knowledge. George S. Schuyler 1. It is neither entirely a question of ethics nor of business. While being business-like, we should have high ethical standards. 2. To a certain extent, cooperatives should take upon themselves the responsibility of say ing what their members shall, or shall not con sume, as in the case of artificially colored foods, injurious to the consumer. 3. They should not always give the con sumers what they demand. Some might want morphine! 4. In answer to No. 4 I would say, at least a majority, so as not to jeopardize the business of the concern. 5. Cooperatives should inform their mem bers as nearly as possible of the true value of articles, and whether or not they are injurious, physically. 6. I can see no reason why beer and wine should not be sold by co-ops. They sell white flour and sugar, and refined rice, which are far more physically injurious, and canned goods whose actual food value is no greater. They also sell ginger ale, which gets its bite from marble dust, and soda water sweetened with saccharine! So why quibble over good beer? The Canadian Cooperator Brantford, Ontario, Canada The organ or the Canadian Coopera tive Movement, owned by and con ducted under the auspices of The Cooperative Union of Canada. Published monthly 75c per annum The Cooperative Builder The official organ of Northern States Cooperative League Central States Cooperative League Central Cooperative Wholesale Midland Cooperative Oil Association An interesting and lively cooperative journal published semi-monthly at Superior. Wis. Subscription rate $1.00 per year. CENTRAL COOPERATIVE WHOLESALE Superior, V/is. FIRE INSURANCE ON YOUR FURNITURE SAFE-ECONOMICAL-COOPERATIVE WORKMEN'S FURNITURE FIRE INSURANCE SOCIETY 227 East 84th St., New York, N. Y. Member of The Cooperative League of the LI. S. A. Under supervision of N. Y. State Insurance Department. COOPERATION Organ of the Con- Movement in the sumers C operati United St-tes Vol. XIX. No. 7 JULY, 1933 10 cents To Adorn 1934 Cooperative Calendar ('"*''' &. A picture in color of this beautiful statue, located at Berne. Switzerland, and symbolic of the International Postal Union, an example of true cooperation between the nations, will adorn the 1934 Cooperative League Calendar. The airy figures encircling the globe, each handing la missive on its way, represent tihe human races. It is hoped that a large numlber of societies will buy these calendars for their members and patrons. A calendar is an all-year advertisement and this will be one v-ihhrh every oooperator will be pleased to hang on his wall. The picture, moreover, is of such a high-cla,ss nature that many will wish to have it framed 'and preserved. I'rices on request. 118 COOPERATION COD PERATID N An organ to spread the knowledge of the Cooperative Movement, whereby the people, in voluntary association, produce and dis tribute for their own use the things they need. Published monthly by The Cooperative League of the U. S. A., 167 West 12th St., New York City.____________________ OSCAR COOLEY, Editor Contributing Editors George Halonen A. W. Warinner L. S. Herron Herman Liebman V. S. Alanne___________George Jacobson Entered as Second Class matter, December 19, 1917, at the Post Office at New York, N. T., un der the Act of March 3, 1879. Price $1.00 a year. Vol. XIX. No. 7 July, 1933 EDITORIAL The Pick-up Things are looking up. The Ad ministration's morphine appears tc be taking effect. The patient is just as sick as ever, but the pain is easing up a bit, at least temporarily. The price level of farm products has risen 37% since March 4. This is enabling the farmer to come back into the buying market. Mr. McCarthy of the Farmers Union State Exchange of Omaha reports ma chinery sales doubled in May, over last year's May. One local cooperative, that of Mullen, Nebr., ordered 23 mowers and 8 windmills. The Ex change's advance sales of binder twine are the highest in 11 years. None of the farm states has been harder hit than Nebraska. Of all farm products, wool has jump ed in price most. The woolen mills of New England are humming at higher pitch. Hourly wages have been in creased slightly (12*/2% in Lawrence) but, more important, each worker is getting more hours of work per week. This should enable him to buy more from his cooperative society and to pay up his back bills. On the other hand, the rise in whole sale prices may embarrass coopera tives, it being difficult to pass these price rises on to consumers, especially to consumers whose paycuts have not yet been restored to them. As ever we are starting off tail-end foremost when we raise prices before raising wages. This is the usual plight of the wage- earning consumer on the upswing of the business cycle. However, passed on to the consumers these price rises must be, and this will be the pressing problem of every cooperative manager during the next six months. • When a Loss Is Not a Loss In our "Statistics of Cooperatives" (May, July COOPERATION), some societies show losses on operations of 1932. One society objected to our pub lishing its operating loss, and another did not wish us to publish the amount of its loss. This raises the question: What does a "net loss" by a coopera tive mean? Surely it does not mean the same that a net loss by a private business means. For a private business is run for profit, and if it does not make a profit, but a loss instead, it might as well shut up shop. While running at a loss, a private business may be serving the consumer well, as by low prices. In fact the loss may be incurred by virtue of the low prices. But this is no virtue to the private businessman; rather it is a calamity. In the case of a cooperative, however, the primary purpose is to serve the consumer, and a cooperative whose books show a loss may be serv ing its consumers just as well or better today than one that is running con sistently in the black. The obligation upon the cooperative manager is two-fold: First, the con sumer group must be served; second, he must, in the long run, break even or better in order to keep the cooperative going and in condition to serve con sumers. • Hitler and the Cooperatives It is very difficult to get any accurate information on the status of the cooper ative societies in Germany under the Hitler regime. However, The Co-oper ative News (Eng.) reports that Dr. Adam Remmele, editor of publications for the German Central Union of Con sumers' Societies (Hamburg) has been arrested and taken to a concentration camp at Kieslau. He and his fellow- prisoners were placed in an open auto- COOPERATION 119 mobile truck and driven slowly through the hooting crowds. Dr. Ley, a high official of the Hitler government, recently announced that the government "has taken command of the consumers' cooperative organiza tions. Both the wholesale at Hamburg and the one at Cologne have submitted to our orders, absolutely and without condition. . . No expansion of enter prises will be tolerated. . . The chiefs of the Nazi Party are requested to cease their hostile attitude toward the cooperatives, which under the control of the government will be managed in the interests of the people." The cooperatives are to be reorgan ized as follows, according to Dr. Ley: The two above-named wholesales, which have a combined yearly turn over of over 500 million marks, are to be merged to permit economies. There will be no more voting; instead, a gov ernment official will make appoint ments in both the central and local or ganizations. There will be a Small Council, presumably a sort of Execu tive Committee, and a Great Council, the latter having to do with relations between cooperatives and private busi nesses. The attitude of the German cooper- ators is hard to determine. It seems, however, that this attitude is not one of clear-cut opposition to the Hitler regime. There are apparently factors in the situation of which we in America are not fully informed. How Farmers' Marketing Cooperatives Differ from Trade Unions By L. S. Herron The following article is in answer to a letter we wrote to Mr, Herron sug gesting that there is considerable re semblance between marketing cooper atives of farmers and trade unions of workers. We invite other opinions on this subject.—The Editor. THE comparison of farmers' market ing co-operatives to trade-unions, so often made, has been greatly over worked. It is not a good comparison so far as marketing co-operatives of the Rochdale type are concerned. In fact, it does not hold at all. Trade-unions are wage-fixing or ganizations. At least they attempt to fix wages. The only thing in farmers' mar keting organizations comparable to that are the pools that attempt to fix prices. None of them have ever been successful in doing so. The defunct Sapiro movement and the Canadian Wheat Pools afford outstanding ex amples of the failure of farmers' price- fixing attempts. Various movements to withhold crops from market have been proposed and promoted. One of these is the present Farmers' Holiday Association.. This organization has agitated for a farmers' strike to withhold all farm products from the market. Such move ments might logically be compared with trade-union activities. But these farmers' withholding movements are not co-operative marketing. In Rochdale marketing co-opera tives, there is no attempt to fix prices. We could not fix prices if we tried. As far as we carry co-operation of this type, we simply take the private profit out of marketing operations. The re sult is to get for farmers the largest possible part of what consumers pay for farm products. Applying co-oper ative principles to marketing in this- way has no resemblance that we can see to trade-unionism. I am not trying to disparage trade- unions. While trade-union methods are of no use to farmers in marketing their products, I am willing to grant their usefulness to urban workers. However, I often wonder whether trade-unions have really been any more successful in fixing wages than farmers have been in their sporadic attempts to fix prices.. 120 COOPERATION The Forgotten Consumer and Who Has Forgotten Him By Dr. J. P. Warbasse WHEN something goes wrong, the guilty are sought. There is a tendency in this present crisis to place the blame upon the offending heads. But, as we examine the situation, we find no uniformity among the authori ties upon this question of guilt. I invite your attention to the proposi tion that there is no guilt. It is not so much a question of what has been done wrongly, as it is a question of what has been left undone. And when we seek to place the blame upon those who have failed to do the necessary duty, we find it difficult to point out the negli gent class. It is not the politician or the diplo mat who is to blame. They are but the servants of the owners of property and credit. It is not the owners of the property and credit, for they are the people whom the world envies and in whose places everyone would like to stand. No, the responsibility for our calamity must be placed upon that head whom everybody wrongfully pities and who is supposed to be the victim of the evils of the world. I point to the culprit—the FORGOTTEN MAN, who hides behind his anonymi ty to conceal his shame. And who is this forgotten man? He is the consumer, everybody, everybody who needs the things the world can yield. He is the neglected man. But the worst neglect he suffers is that of which he himself is guilty. A great machinery has been developed for doing the world's work. But that ma chinery has been created by the pro ducers of things, and for them it is run. So perfected is this mechanism that it is capable of producing all the world needs with one hour of labor a day from every able-bodied person. But *An address delivered at Lawrence, Mass., May 21, 1933. the neglect of the consumers has re sulted in the production of great wealth which never reaches the people who need it. The banking business illustrates what has happened to the neglected man, or rather what he has permitted to happen to himself. This most im portant business is not run in the in terest of depositors and borrowers. They play no figure. The control and the profit are in the hands, not even of the stockholders, but of a small band called the directors. Often the whole power lies with one official—captain of the wealth of other men. The neglect of the consumers of credit has been the largest of all factors in bringing the world into its present desperate predicament. The banking business is not run for them; it runs over them. But the greed of the captains of wealth has been carried so far that it threatens its own destruc tion. The farmer is in trouble because he is a worker, producing something use ful to sell to other people and wanting to own his own tools. The bankers will not let him have his wav. His industry is disorganized, because he has thought of himself as a producer, and has failed to unite with his fellow farmers as a consumer. He has cast his lot with the minority instead of with the majority, and the minoritv has played him false. He has made himself the forqotten man. Now he needs to be paid by the government to produce less, because the government helped him to produce more. The farmers sold so much that the sheriff is selling their farms. All Belong to Legion The worker, the baker, the shoe maker, the doctor—all playing the game of the competitive strugqle—find themselves members of the forgotten COOPERATION 121 legion. The people have not enough doctors. Thirty-eight per cent of the cases of incapacitating sickness in this country receive no treatment at all. The people's ills are not given the full benefit of all that science could do for them. Meanwhile, the doctors have difficulty in making a living. More doctors are needed; but we cannot have more doctors until the purchasing power of the people is expanded. The world is now trying to set itself on its feet and continue its way on the same old course. But this will lead to the same sort of trouble again. Now is the time to think about a way out that will lead where we want to go—where there are no armies of forgotten men. The cooperative method has been in operation more than three quarters of a century. Instead of making the mill, the mine, and the counting-house the centers of interest, it makes the home the center; it begins with the supply and distribution of the things people need. Starting with 28 members in Rochdale, it has continued to grow un til in several lands its membership is now close to half the population. This cooperative method of doing business is for service and not for profit. It makes short weight and adul teration impossible. It requires no smart salesmanship or advertising. The people, who are the consumers, own their own business. They are organ ized to do everything for themselves. The only mines, factories and shops in the world that can continuously pro vide the people with commodities at cost are those that are owned by the organized consumers. Up Tolls We need not be at the mercy of an economic system that does not work. It is not necessary that we ride in a cart that upsets us all at intervals into- the gutter. We need not be forgotten men and women. We can all find our selves, and be found by our neighbors, and run the affairs of the world for our own interest. But nobody is going to do this for us. Not Mr. Roosevelt. Not Mr. Hitler. We have to do it ourselves. By begin ning in a small way, learning how to- carry on small business, developing loyalty, watching our step, and then expanding into other fields, we may •win success. Cooperation would not upset our institutions; they are already upset. Cooperation would put our house in order, and make it possible for us to live together as friends and brothers. The time has come when we must pass from individualism in competition to- individualism in cooperation. And you and I, the forgotten men and women, must bring this blessing to pass. News and Comment Co-op Oil in St. Paul The cooperative gas and oil move ment appears to be moving into town. Last month we recorded the organiza tion of the Minneapolis Cooperative Oil Association and the opening of its station. Now we learn that in St. Paul the new station of the Park Coopera tive Oil Association is about com pleted. This was organized largely by faculty members of the Agricultural college. It has about 225 members. Private interests did their worst to frustrate this movement, buying up and leasing available sites, instigating the erection of a building on an adjoining lot in order to destroy the value of the cooperative site at Carter and Como Aves., and attempting to block the granting of a permit by the city; but none of these worked. The Associa tion recently held its first annual meet ing. W. E. Petersen was elected presi dent. A. J. McGuire, manager of Land O'Lakes Creameries, is a member of the Board. Another cooperative, the University Cooperative Oil Association, has leased a station at 2250 University Ave., Min neapolis. This makes 3 cooperative oil 122 COOPERATION stations in the Twin Cities. The three associations are planning to combine •on fuel oil distribution. • Launch Co-op Life Insurance Association Minnesota is to have a cooperative life insurance company. The Northern States Cooperative League has organ ized the "Cooperators Life Associa tion" and is in process of getting the 500 charter members required before the first policy can be issued. It is to be incorporated under the Minnesota law governing fraternal benefit socie ties. Each policyholder will have one vote only and no proxies will be al lowed. Four kinds of policies are to be issued: Ordinary life, 20-Payment Life, 20-Year Endowment and Modified Life Expectancy. Profits are to be re turned to the policyholders. No initia tion fees are charged. The only pay ment is regular premiums when due. The plan of organization is similar to that of the New Era Life Association of Grand Rapids, Mich. The two as sociations will work in close harmony. All cooperators in Minnesota are urged to become members. For in formation address 2100 Washington Ave. N., Minneapolis. • Feed Orders Increase The Eastern States Farmers Ex change received orders for 1007 car loads of feed and grain during April. This was not only larger than April of 1932, by 51 cars, but was the largest month's feed business in the Ex change's 15 years of operation. • The gross membership of American farm cooperatives, both producer and consumer, increased 500% between 1915 and 1930. In the six years pre ceding 1930, one farmer out of three was a member of one or more cooper atives. • Poultry commission agents in New York feed their birds an indigestible mixture of "flour and cement-like sub stance," the Federal Trade Commis sion-learned recently. This is one way to increase the poundage. Abroad The Big Fellow The London Cooperative Society has a membership of 481,665, capital £7,389,183, trade for year ending March 4, 1933 £9,898,248. Capital in creased nearly a million in the last year. Total wages paid increased £21,- 000. Interest on capital has been re duced to Premium On Increased Trade The Sunderland Cooperative So ciety (Eng.) uses an interesting method of encouraging increased trade by members. In addition to its normal dividend on purchases (at present 5%), it pays an additional dividend of a like percentage on the purchases of each member durinq the current quar ter over that member's- purcahses for the corresponding quarter of the pre vious year. Thus a premium is placed on increased trade. The scheme is said to work to satisfaction. Takinq Care of Old Age Relative to retirement insurance of coooerative employees in England, R. A. Palmer, secretary of The Coopera tive Union, writes us: "There are something like 120 societies covering the majority of cooperative employees, which have adopted superannuation schemes, and more and more attention is being given to this provision for the old age of cooperative servants." • Consumers' Co-ops Superior to Producers' In the last half century, over 100 producers' cooperatives, or so-called co-partnership concerns, have been formed in one English city, Birming ham. Today onlv one of these exists. Meanwhile, the Birmingham Coopera tive Society, a consumers' cooperative, has grown to a membership of 161,886, annual trade £3.821.986. capital £2.- 211.975, number of shops 289, em ployees 3,933. COOPERATION 123 Consumers' Cooperation in the United States By Oscar Cooley A bird's-eye view, including operating statistics for the years 1931 and 1932. V In the Eastern States THE Eastern States Cooperative League was formed in 1925 by 16 societies. It now has 40 member socie ties, with about 19,000 members. Total business in 1932 approximated $4,000,- 000. Of these societies 20 are located in Massachusetts, one in Connecticut, two in New Jersey and the balance in New York, chiefly in and around the metropolis. Thus there are two sec tions, the New England and the New York City sections. The Eastern Cooperative Wholesale was formed in 1929. It has its office in New York City and staff of three, doing no warehousing as yet but acting as a central purchasing agency. Its volume in 1932 was $223,000, which is about $23,000 less than in the year preceding. The Eastern League holds an annual convention, usually in New England, mainains a popular one-week Institute in July, and carries on other educa tional activities such as a weekly radio program on a New York station, lecture series, conferences, etc. Educa tional Committees function in both the New York and New England sections. The dire need of societies for credit prompted the Eastern League in the summer of 1932 to organize a Credit Pool. The plan is to accumulate funds by receiving deposits from societies, as •well as from individual cooperators, and to extend loans to societies upon recommendation of a Credit Commit tee. The Pool is too young yet to be able to report accomplishment. Type of Societies What is the make-up of the Eastern League? Housing, restaurants, food stores, bakeries, dairies and insurance are represented. Especially notable is the Amalgamated Housing Corpora tion of New York City. This is an off shoot of a labor union, Amalgamated Clothing Workers of America. Housing •A cooperative apartment house com munity on the fringe of Van Cortlandt Park was started in 1927. Units have been added until it now houses over 600 families. Rentals are notably be low the market, and the quality of the apartments notably above. A store, milk and laundry service, school bus and other services within the community are operated coopera tively. Cooperative principles are closely adhered to. A social and educational director is employed, a paper "The Amalgamated Cooperator," is pub lished. Concerts, lectures, forums and other cultural and recreational activi ties are part of the community program. Nearly all of the Amalgamated cooper ators are Jewish, and a large majority are working-class. A second house, Amalgamated Dwellings, 231 families, has been es tablished in the lower East Side of New York. Rents here are slightly higher, and more of the cooperators are of the small business-man and profes sional class. The main obstacle to cooperative housing has been the difficulty of the cooperator supplying the capital re- guired, usually one-third of the total. This has been largely overcome in Eu ropean cities by loans from the muni cipality or state. A society that has been very suc cessful, from the standpoint of balance sheet and guality of goods provided, is Consumers' Cooperative Services, Inc., also of New York City. A chain of 9 cafeterias and foodshops is operated in centra] and lower Manhattan. The first cafeteria was opened in 1920. Great emphasis has always been placed on the quality of food offered, which is of the typically American, home-cooked Statistics of Cooperatives (Cont. from May COOPERATION) Gross Gain Name A. C. W. Services, Inc. New York, N. Y. Cooperativa Italiana Winchendon, Mass. Cooperative Bakery of Browns ville 6 E. New York Brooklyn, N. Y. Cooperative Trading Assn. Brooklyn, N. Y. Italian Colonial Coop. Co. Leominster, Mass. United Coop. Society Fitchburg, Mass. United Coop. Farmers Fitchburg, Mass. • United Coop. Society Maynard, Mass. United Coop. Society Quincy, Mass. Workers Coop. Union Lawrence, Mass. Workers Coop. Union Stafford Springs, Conn. Type Service Store, etc. Store Bakery Store Store Store Dairy, etc. Farm Supplies Store Store Dairy, Bakery Store No. Members 811 61 800 2500 130 600 9 assn's. 638 245 226 182 *Based on following departments^grocery, meat, restaurant, dairy **Based on following departments^grocery, meat, dairy, bakery, Year Sales Percentage 1931 $215,178 1932 232,701 1931 36.831 1932 34,038 1931 294,491 1932 240,531 1931 334,379 1932 216,583 1931 45,379 1932 41,461 1931 330,560 1932 311,242 1931 158,787 1932 141,028 1931 252,343 1932 245,257 1932 67,225 1931 71,840 1932 60,840 1931 110,402 1932 82,779 , coal, dry goods. coal, grain. 25.4% 24.3 17.1 15.4 26.2 24.4 48.9 46.9 21.4 22.5 31.5* 31.4* 11.9 10.8 28.4** 29.2** 28.2 49.0 47.6 16.8 18.3 Expense Percentage 22.9% 22.4 15.7 15.7 25.9 26.3 50.2 55.5 9.5 10.5 27.8* 30.5* 8.5 9.5 23.7** 25.4** 28.7 48.4 56.5 15.5 20.0 Wage Percentage 14.0% 15.1 7.8 8.2 49.1 47.5 30.2 32.5 7.5 8.5 16.6* 18.0* 4.6 4.5 13.7** 13.1** 14.4 20.4 17.6 8.3 10.0 Net Gain $5,517 4,369 615 476 -3,767 Loss Loss 5,400 4,985 11,005 3,847 2,515 1,760 12,126 9,024 -297 411 -5,330 1,507 -1,345 £ O O 0 "0 fa to •S 0 Name Amasa Coop. Society Amasa, Mich. Aurora Coop. Merc. Assn. Aurora, Minn. Brookston Farmers Coop. Trading Co., Brookston, Minn. Denham Coop. Assn. Denham, Minn. Ely Coop. Assn. Ely, Minn. Equity Farmers Coop. Prod. Assn. Ashland, Wis. Farmers Coop. Assn. Herman, Mich. Iron Belt Coop. Assn. Iron Belt, Wis. North Hurley Coop. Assn. Hurley, Wis. Toivola Coop. Merc. Co. Meadowlands, Minn. Van Buskirk Equity Coop. Supply Co., Van Buskirk, Minn. Workers Coop. Society Marquette, Mich. Range Coop. Oil Virginia, Minn. *10 months, Type Service Store Store Store Store Store Store Store Store Store Store Store Store Oil No. Members 73 79 228 214 130 131 108 133 136 138 304 304 66 69 41 43 92 88 101 99 248 274 12 ass'ns. 13 ass'ns. Year 1931 1932 1931 1932 1931 1932 1931 1932 1931 1932 1931 1932 1931 1932 1931 1932 1931* 1932 1931 1932 1931 1932 1931 1932 1931 1932 Sales $39,172 22,535 65,058 35,640 25,205 27,213 Gross Gain Percentage 15.29% 7.87 22.72 25.92 15.06 12.18 (Was a branch of Kettle 15,145 59968 43,149 36,547 39,901 42,456 23,246 34,432 27,345 12,347 14,223 24,341 19,612 11,762 10,731 77,790 46,680 98,605 91,504 8.83 13.21 14.29 7.16 7.25 12.14 17.69 15.71 14.08 20.00 18.15 14.63 13.31 20.27 10.21 18.67 18.32 24.88 24.77 Expense Percentage 14.21% 15.93 17.74 25.30 15.73 13.41 River Store) 13.29 16.35 16.14 4.68 5.23 13.95 17.30 13.12 13.60 14.24 16.05 15.00 16.70 21.61 20.61 17.67 18.47 14.60 13.96 Wage Percentage 8.20% 8.68 7.70 12.20 8.15 6.48 8.38 9.00 9.04 Not known 3.51 8.13 8.15 7.47 8.37 8.50 8.44 7.32 8.23 12.28 8.78 9.47 10.32 11.03 6.48 Net Gain $386 -1,391 3,867 352 641 373 -286 -2,434 -1,644 1,216 1,060 -236 21 604 -2 736 302 674 -111 -58 -1,147 162 -506 10,853 10,265 O O O •fl fa &! •s O ^ NJ Ul 126 COOPERATION Variety. Prices are competitive, quality being the main appeal. This appeal plus the custom of paying a regular though small purchase rebate, accounts for the relatively large membership of about 4000, and the still larger non-member patronage. Membership is open and may be attained by purchase, on easy terms if desired, of two shares of stock at $5 each. Net earnings on non-mem bers' trade is put aside into a "reserve fund for the extension of the business as a consumers' cooperative," which at present is a little over $200,000. A 67- family cooperative apartment house has been built by this society and a credit union established. Union Plus Cooperative Typical of the bakeries established by the Workmen's Circle is the Co operative Bakery of Brownsville 6 East New York. It was started in 1918 with 1400 members, all union workers in the needle trades. Six stores were opened, but were found impracticable and closed in 1920, and the bread has been sold at wholesale through private stores ever since. Brownsville Bakery has always been a bulwark for the bakers' union. In 1926, at the time of a lock-out by the private bakers, Brownsville delivered bread to every part of New York City where these bakers had trade and in six weeks forced them to take the union men back. Brownsville has also served the bread consumer well. In 1918, bread sold at the wartime high of 12c; the co operative began selling at 7c. As late as 1930, the cooperative dropped the price Ic per pound, forcing the private bakers to do likewise. The Purity Cooperative Bakery of Paterson, N. J., is of similar type. It has withstood the depression best: of any of the cooperative bakeries. It also runs a butcher shop. The Cooperative Trading Associa tion of Brooklyn is a large Finnish store co-op. It also runs a restaurant, bakery and garage. It has suffered re cently from political struggle. In New England In eastern Massachusetts at least 8 societies were established by the Finns. Shortly after the war, these were amal gamated into one "United Cooperative Society" with headquarters in Boston. However, the volume was not sufficient for centralized operation, and the mer ger was soon split into its component parts. At present the only ones remain ing are the United Cooperative So cieties of Fitchburg, Maynard, Quincy and Norwood. The first two are e_spe- cially strong. The Gardner store has been run as a branch of Fitchburg since 1931. These societies are steadily gaining more and more native Ameri can trade and membership. This is largely due to the activity among the youth. The United Cooperative Farmers is a federation of 9 Finnish farmers sup ply associations in and around Fitch burg. In Fitchburg also is the Workers' Credit Union of 2400 members, share capital $200,000, deposits $530,000. The Workers Cooperative Union of Lawrence, of Italian origin but gaining steadily among other groups, has a bakery and a dairy that is a model for cleanliness and up-to-dateness. This society has been a great help to Law rence mill workers in time of strike. Other sturdy cooperatives of Italian origin are in Winchendon and Leom- inster, Mass., Stafford Springs, Conn., Union City and Paterson, N. J., and several in the Wyoming anthracite re gion of Pennsylvania. As in the West, many farmers' co operative stores and buying associa tions dot the East. Although doing much the same thing, and in much the same way as the League societies above described, these farmers' associations hardly know of the existence of the urban consumers' cooperatives, and when approached are not quick to join in federative activities. It is the farmer, however, who has been responsible for the greatest growth which Consumers' Cooperation as well as Producers' Cooperation has achieved among any group in America. The End. COOPERATION 127 Eastern League Divorces National, Marries Wholesale—Other Changes *->•* rl THE outstanding action of the an- •*• nual convention of the Eastern States Cooperative League was the decision to separate the offices of the Eastern States League and The Co operative League of the U. S. A. Leslie Woodcock, manager of the Eastern Cooperative Wholesale, was elected Executive Secretary of the Eastern States League, and henceforth the of fice of the Wholesale at 112 East 19th St., New York City, will also be the office of the Eastern States League. The national League remains at League House, 167 West 12th St. This is an important step. It has long been desired by both East and West. It has not been taken before for one reason: cost. The societies of the East ern States district felt that they could not maintain an office and staff of their own. The national felt the same. The natural decision was—to cooperate. One office and staff was maintained, the Eastern League paying one-third of the cost, the national two-thirds. At first thought, this might seem an ideal arrangement. It was not. "He that hath two masters, etc." The staff was constantly faced with the problem of dividing its services equitably. "Is this Eastern States? Or is it national?" The usual answer was "Oh, never mind, do it." "It," by the very factor of location, very often was a matter having to do with the cooperative movement in the Eastern States dis trict. This, naturally, did not set any too well with the West, where so much of the national League is located and so much of its support comes from. Con sequently, the recent decision, which sets the Eastern States and the na tional each on its own feet, should be welcomed. Thus the Eastern Wholesale, with out adding to its own expense, takes over the educational activities of the Eastern League. This means of course an extra burden on the staff of the Wholesale. But it means also a mar riage of the business of educating co- operators to the business of distributing goods to cooperators, a union which should have the blessing of all. Meanwhile, what of the national League? Cooley No Longer Secretary At a meeting on May 25th, the Ex ecutive Committee of the Cooperative League of the U. S. A., voted drastic reduction in the expense of the national office, which had already been pared to the bone by the Staff. The office of Executive Secretary was declared va cant as of June 15th, and Oscar Cooley was engaged to edit COOPERATION on a part-time basis. Dr. J. P. War- basse was made Acting Executive Secretary. Other economies were made, all pending the annual meeting of the Board of Directors which will be held, probably in Chicago, about Oct. 1st, when provision for the future will be made. In spite of this summer retrench ment, forced by economic conditions, the national League will carry on just so far as possible without interruption. Mrs. Julia Perkins, Financial Secreta ry, will be in the office at all times. Volunteer workers will assist. Dr. War^asse, busy professional man though he is—he lectures at two medi cal schools—will give more time to the work of the League. The national magazine will continue to hammer home the gospel of Cooperation. Other self-supporting activities, such as the popular League Calendar, will be con tinued. Needless to say, any additional sup port which cooperators or cooperative societies can give these activities, such as more readers for COOPERATION, and greater use of the Calendar, will assist the League, and at the same time help to keep the torch of Cooperation burning bright during these otherwise dark times. O. C. 128 COOPERATION Warinner Enthus astic Over Indiana Schools r I 'HE series of six summer schools of •*• Cooperation which the Central States Cooperative League is now en gaged in conducting for the Indiana Farm Bureau Cooperative Association is the first effort that has been made to carry on cooperative education on a formal, organized basis in this state since the days of Robert Owen and the New Harmony community. For the purpose of these schools the state has been divided into 5 districts, each district containing approximately 20 counties. A school of one week's duration is being conducted for each of these districts to which each county organization in the district is entitled to send two students. While all of the counties in each district have not avail ed themselves of this privilege so far, the attendance has been quite satis factory and the results have been such that one county (Noble) has decided to sponsor a school of its own, which will also be under the direction of the League and to which each township in the county will be expected to send three students. The course consists of regular daily classes in Organization and Admin istration of Cooperatives, another in Training for Cooperative Leadership, and lectures on such topics as Cooper ation in Many Lands; Cooperation in the United States; Our Economic Mo rality; Cooperation as a Philosophy of Life; The Economic Depression—'Its Cause and the Remedy; Cash vs. Cre dit Trading; Credit Unions and their Place in the Cooperative Movement, etc. The work is all being handled by a staff composed of officials of the Central States League and the Indiana Farm Bureau Cooperative Association. The first three of these schools was held at McCormick's Creek State Park, near Spencer, Indiana, starting May 21st and closing June 10th. The second series of three schools opened at Lake- wood Lodge, near Warsaw, June 18th and will close July 8th. There could be no more ideal loca tion for such an affair than at Camp Talahi (The Open Door) in McCor mick's Creek Park. The camp is sit uated in a beautifully wooded tract of several acres on the high bluffs above McCormicks' Creek Canyon and with in hearing distance of a beautiful wa ter-fall. It is equipped with a large lodge, one end of which we used for a mess hall and the other end is used for class room and auditorium. Attached to the building is a spacious kitchen fully equipped in every detail. Also large pantry and living quarters for the kitchen help. There are two large dor mitories accomodating about 40 stu dents each and the kitchen and dining room is equipped to care for 80 per sons. There is also an old pioneer log cabin, built in 1857, which serves as administration building and living quarters for the director of the school. This cabin has been the office of the Central States Cooperative League for the past three weeks, as well as the office of the school. All the buildings are equipped with electricity and run ning water and a perfectly appointed swimming pool is only a few hundred yards away. We feel that the work being done in these Indiana schools will mark the beginning of an epoch in the history of the development of the Cooperative Movement in this state, which is des tined to become one of the strongest divisions of the movement in this coun try. These Indiana farmers have done wonderful things in cooperation in the past few years, and if they continue the course they now have mapped out, there is no doubt that they will do much greater .things in the years to come. They have vision, courage and resourcefulness and the will to do. The spirit we have seen displayed here is the kind that knows no defeat. A. W. W. • The E. S. C. L. Convention THERE was a distinct note of cheer at the annual convention of the Eastern States Cooperative League in Lawrence, Mass., May 21st. In spite COOPERATION 129 of shrunken volume, no affiliated so cieties have failed during the year past. The textile industry of New England shows some pick-up and both employ ment and wages in the woolen mills are on the increase. More than one society, such as the Workers Cooperative Union of Lawrence, is happy because it is expanding outside of its original racial group. The Youth Clubs are teeming with energy and the desire to put Cooperation on the map, and the Women's Guilds are coming into the picture with vigor. Plans for the 1933 Summer Institute at Brookwood, to be conducted by the new E. S. C. L. Secretary, Leslie Woodcock, July 9- 15, are rapidly taking shape. The League is having its own money difficulties, true. However, the act of '"moving in" with the Whole sale, voted by the convention in ex ecutive session, means a closer work ing relationship between the business of educating cooperators and the busi ness of distributing goods to cooper ators, two things which never should be separated. At the session on Women's Guilds, Mrs. Virginia Hill of New York, of the National Women's Guild Commit tee, and Mrs. Lempi Rimpila of the Fitchburg Guild, spoke most eloquent ly of the place of woman in Coopera tion. Said Mrs. Hill, "Friend Husband does all the talking; but it is Friend Wife who does the buying." All agreed that these two proved that woman, also, can talk ably and that two new platform champians had been found for the cooperative movement. The Youth program was well pre sented by Helvi Kiuru and Aino Liika- nen of Fitchburg, Chas. Manty and Chas. Hekkala of Maynard. It was voted to give the Youth and Women's movements more orominent place on the program of the next convention. The keynote speech of the conven tion was made Dr. J. P. Warbasse. It appears on another page. Other speak ers were Carl Smith of the Manchester Dairy System, a marketing coopera tive. Quentin Reynolds of the Eastern States Farmers Exchange, and A. B. Lewis of the Socialist Party. Meyer Rubinson, manager of the Cooperative Bakery of Brownsville was elected President of the League. This honor comes to a man who has given years of devoted service to the cooperative and trade union movement, and who is one of the best-liked co operative executives in the East. The only new member elected to the Board was Arvo Rivers, manager of the United Cooperative Society of Maynard. The following were elected to succeed themselves for a term of two years: A. E. Kazan, Simon Farber, E. Giardini, W. Niemela. Niemela was elected president of the Eastern Cooperative Wholesale. The following were reelected to the Board: Mary Arnold, W. Niemela, M. Rubin son. Much credit is due the local Com mittee on Arrangements, consisting of Charlotte and Michael Marchese, Car mine Grande and Jos. Salerno, espe cially for the enjoyable dance the night before and for the equally enjoyable eats. The "bar" was a popular spot. Insurance Pointer No. 7—• WHEN IS AN ACCIDENT NOT AN ACCIDENT Why are there so many kinds of accident insurance policies? And which kind will give me the most for the money? There are many kinds largely because each company wants to have its own particular brand and to be able to claim that it is the best. Here are a few points to watch for. Does the policy cover all accidents or on ly a few kinds like train wrecks and auto wrecks? The man who falls off a step lad der needs protection as badly as the man who is struck by lightning. The fallacy in the limited accident policy is that it covers accidents that are spectacular but that sel dom happen. If there is a weekly indemnity how long is it payable?—six months, one year, for life? What provision is there for doctor bills and hospital fees? Are airplane accidents covered? Can the company cancel any time it wants to, leaving the policyholder without protection as to future accidents? There are only a few "non-cancellable and renewable" policies. They come high, but they are worth a lot. A monthly insurance paragraph, con tributed by Clusa Service, Inc., the League's insurance service for cooperators. 130 COOPERATION Cooperative Youth Hubbardston Will Send Two Students To Cooperative Institute On June 13th the Hubbardston Co-op Club held a regular meeting at the Farmers Hall. Because of the absence of our president, V. Merikanto, our vice-president, A. Hannula, con ducted the meeting. It was opened by Rev. A. Kukko, who chose as his subject, "Problem of Youth in Cooperation." This was not only edu cational but also enjoyable. It was agreed that the Club will send two members to the Cooperative Institute at Brook- wood Labor College. There was a long discussion about the youth summer festival which may be held in Saima Park. The club as a whole is for it, and we also want the annual outing. Miss Helvi Kiuru of the Fitchburg Club was at our meeting. She gave us a short summary of the activities of their club. Our next dance will be held on July 8th and we promise each and all of you who come a very good time. Our horseshoe team is in perfect shape and we are ready for any kind of competition. The Mayor • Getting Everyone to Help You probably will find any number of Co operative Youth Clubs that are just part-ways active. Ours was very much so until at one meeting we had a general "show-down," de cided that there were a few who were "hog ging" almost all of the work and the rest doing next to nothing because they thought that they were incapable of doing anything and that they weren't entitled to work. We first had to tell the hard workers to ease up a little and release some of the work they were doing, because the load was too heavy for them to carry. \Ve formed committees of many different types— into which we got most of the inactive mem bers and one or two of the active ones on each of the committees to act as the "spark plugs." Our educational program was sadly neglected before, but now we devote quite a bit of time at each meeting for this pumose. It is interesting to see how the youth that "doesn't care for anything but having good times" takes to co operative education. We didn't believe it pos sible but it's true. And, finally, to get genuine interest in Cooperation, we would advise every group to send several students to one of the Cooperative Summer Schools this year. They are the best means of learning and of putting active members into societies that need them very much. \Ve wish to invite any cooperators who may be attending the "World's Fair" here this sum mer to visit our store which is located at 2659 South Crawford Avenue and get acquainted. Frank Pesek Junior Cooperators of Chicago. Wo