The source of this uncorrected OCR text may be viewed in the DjVu format at: http://fax.libs.uga.edu/HD2951xC776/co39 or http://purl.galileo.usg.edu/ugafax/HD2951xC776/co39 CONSUMERS' COOPERATION OFFICIAL ORGAN Of The Consumers' Cooperative Movement in the U. S, A. VOLUME XXV ] anuary—December 1939 Published by The Cooperative League of U. S. A. 167 West 12th Street, New York City 181 111 INDEX ONSUMERS' COOPERATION PAGE Accountants Stress Uniform Reports at National Meeting ................................................ 107 Adult Education, Voluntary ........................................................................................................................ 187 Advisory Council Progress in Ohio ...................................................................................................... 121 Agster, H. S. ................................................................. 184 Aiken, George D. .................................................................................................^....i...................................... Ill Alanne, V. S. ............................................................................................................................................... 95 Alm, Ulla .................................................,................................................_ 126 Amalgamated Cooperative Apartments ............................................................................................. 3 2 American Federation of Labor .........................................................................................................13, 173 American Folk Dances, a review ............................................................................................................ 190 American Folk Songs, Three, a review ................................................................................................ 189 Another Bust Ahead, Prepare for It ...................................................................................................... 181 Austrian Central Cooperative Bank, The .......................................................................................... 21 B Bakken, Henry A. ................................................................................................................................................ 136 Barren, George G. ............................................................................................................................................ 149 Beard, Charles A. ................................................................................................................................................ 84 Benjamin, R. N. .....................................................................^................................................................ 149, 184 Bergengren, Roy F. ............................................................................................................................................. 167 Bibliography on Consumer Education, a review ........................................................................... Ill Borah, Senator ..................................................................................................................................................... 82 Bowen, E. R. ............................................................................................. 6, 54, 66, 82, 99, 147, 181 Bricker, Gov. John W. .................................................................................................................................... 173 Brighton's Cooperative Advance, a review ....................................................................................... 32 British Federation of Cooperative Youth .......................................................................................... 178 British Luma Lamp Society ........................................................................................................................... 158 Broadcasts in 1938, National ..................................................................................................................... 15 Brown, W. Henry ................................................................................................................................................ 32 Burley, Orin E. ...................................................................................................................................................... 175 California, Associated Cooperatives of .................................................................................... 30, 173 California Institute ............................................................................................................................................. 125 Calkins, Gilman ................................................................................................................................................... 93 Campbell, Wallace J. .................................................................................................................. 12, 42, 169 Careers in Consumer Cooperation, a review .................................................................................... 95 Carpenter, Dr. J. Henry ........................................................................................................................ 11, 175 Central Cooperative Wholesale .......................................... 13, 29, 79, 124, 159, 162, 171 Central Conference of American Rabbis .......................................................................................... 1 ""^ Central States Cooperative League ......................................................................................................... Chicago Cooperative Union ....................:.......................................................................................... 32, Chronology, National Cooperative ..................................................................................... /~1 1 T " _.. - 1 ~" " ~ ——' Church and Cooperatives, Committee 125 79 172 49 on the ...................................................... {4 INDEX PAGE Circle Pines Center .................................................................................................................................... 15, 72 Coady, Dr. M. M. ........................................................................................................................ 17, 132, 174 Cog or Collaborator, a review ..................................................................................................................... 126 Cole, Margaret ...................................................................................................................................................... 110 Compere, Ralph and Moirée ........................................................................................................................ 164 Concerning the Choices Before Us, a review ................................................................................. Ill Condensed Cooperative Balance Sheet Comparisons ............................................................... 186 Conference on Organized Labor and Consumer Cooperation ................................. 30, 91 Congregational Council for Social Action ....................................................................................... 30 Congress of Industrial Organizations ....................................................................................... 13, 174 Consumer Awakens, The, a review ...................................................................................................... 127 Consumer Consumed or Pure Applesauce, The, a puppet play .......................................... 60 Consumer Education journal, a review ............................................................................................. 190 Consumers Cooperative Association .............................. 12, 13, 30, 79, 81, 162, 170, 173 Consumers' Cooperatives Associated ................................................................................................... 13 Consumers Cooperatives as a Distributive Agency, a review ............................................. 175 Consumers Cooperative Refineries, Ltd. .......................................................................................... 170 Cooley, George L. ................................................................................................................................................ 53 Cooley, Oscar ......................................................................................................................................................... 133 Cooper, Madge ...................................................................................................................................................... 189 Co-op Center, The ........................................................................................................................ 79, 125, 142 Cooperation, a Way of Peace ..................................................................................................................... 154 Cooperation as a Way oj Peace, a review .......................................................................................... 64 Cooperation in the Land of the Midnight Sun .............................................................................. 136 Cooperation Moves South ........................................................................................................................... 90 Cooperative Book Club ........................................................................................................................ 13, 31 Cooperative Buying is Big Business ...................................................................................................... 100 Cooperative Distributors ............................................................................................................ 13, 47, 143 Cooperative Education Association .................................................................................... 13, 30, 173 Cooperative Highlights ................................................................................................................................. 162 Cooperative Life Insurance Company of America ............................................................ 13, 29 Cooperative Primer, The, a review ......................................................................................................... 191 Cooperative Recreation Service ............................................................................................................... 189 Cooperative Refinery ........................................................................................................................... 125, 170 Cooperative Society for Recreational Education Conference ............................................. 172 Cooperatives in America, a review ......................................................................................................... 48 Cooperators of America! Take a Positive Stand for Peace! ................................................ 147 Cooperators Must Help Each Other Reach the Right Conclusions .............................. 65 Co-ops Move Into Production, The ...................................................................................................... 169 Co-ops Can't Profiteer—Sales Boom ................................................................................................... 159 Cort, E.G. ............,..................................................................^ 150 Country Gentleman ................................................................................................................................ 17, 97 Cowden, Howard A. .......................................................................................................................................... 149 Cowling, Ellis ......................................................................................................................................................... 48 Credit Union National Association ...................................................................................................... 52 Cross, Dr. Hartley ................................................................................................................................................ 94 D Day With Kagawa, A, review of film ................................................................................................... 127 Decade of a Dying Order .............................................................................................................................. 161 1 r T INDEX INDEX PAGE Defending Democracy .................................................................................................................................... 82 Democratic Sweden, a review ..................................................................................................................... 110 Douthit, Davis .................................................................................................................................................... 85 Drama in Peace, There's ................................................................................................................................ 160 Eastern Cooperative League ....................................................................,......'.............................. 125, 173 Eastern Cooperative Wholesale .................................... 12, 29, 47, 81, 93, 117, 125, 159 ECW's First Ten Years ................................................................................................................................. 117 Economy, A Cooperative ................................................................................................................................. 99 Education Conference, Free Trade in Ideas at Milltown ...................................................... 105 Education Program, National ..................................................................................................................... 2 Education Through Recreation, a review .......................................................................................... 94 Educational Activities ....................................................................................................................................... 14 Edwards, Ellen .................................................................................................................. 45, 108, 128, 141 Edwards, Gladys Talbott .............................................................................................................................. 127 Epitome of the Cooperative Movement ............................................................................................. 114 Equity Cooperative Creameries .................................................................................................................. 29 European Visitors ................................................................................................................................................ 14 Ezekial, Mordecai ................................................................................................................................................ 127 Factories in the Field, a review ............................................................................................................... 191 Failor, Clarence W. .............................................................................................................................. 95 Farm Bureau Mutual Auto Insurance Company ....................................... 13, 79, 125, 142 Farm Cooperatives Show Huge Gains ................................................................................................ 76 Farmers Union Cooperative Hospital ................................................................................................... 104 Fascism, Regarding ............................................................................................................................................ 73 Films, Cooperative .................................................................................................................................... 42, 128 Financial Statements, Cooperative Condensed .............................................................................. 54 Finland, A National Success Story ......................................................................................................... 183 Finland, Cooperation in ................................................................................................................................. 132 Fosdick, Dr. Harry Emerson ..................................................................................................................... 35 Fowler, Bertram B. ............................................................................................................................................. 34 Freedom of the Individual ........................................................................................................................... 4 Good Will to Men Means Plenty to All ............................................................................................. 177 Grange Cooperative Wholesale ............................................................................................................... 13 Green, Perry L. ............................................................................................................................................. 3, 150 Greenbelt Cooperative Health Association ....................................................................................... 104 Grossman, Otto ...................................................................................................................................................... 21 Group Health Association of New York .......................................................................................... 102 Group Health Association of Washington, D. C. ..................................................................... 103 Group Health Plans .......................................................................................................................................... 125 H PAGE Harvard Bureau of Business Research Report .............................................................................. 69 Hedberg, Anders ................................................................................................................................................... 159 Highlights of 1938, Cooperative ............................................................................................................ 12 Highlights, National Cooperative ......................................................................................................... 50 Hjalmarsson, H. ................................................................................................................................................... 36 House Without a Landlord, review of film .................................................................................... 128 Housing in Sweden, Cooperative, a review .......................................... .... . 126 Hull, I. H. ............................................................................................................................................. 180 Indiana Farm Bureau Cooperative Association ............................................................... 124, 170 Industrial Arts Cooperative ........................................................................................................................ 141 Inside the Cooperative Family ............................................................. ..... ..... ... 74 i y ... .... .... .... .... ...... / M. International Cooperative Alliance, Appeal for Funds ............................................................ 31 It Won't Happen Here, a review ............................................................................................................ 189 J Jacks, L. P. .............................................................................;............................._................„................................ 94 Jews, Central Conference of American Rabbis ........................................................................... 125 Jobs for All, a review.......................................................................................................................................... 127 Johansson, Albin ................................................................................................................................................... 159 Johnson, Josephine ............................................................................................................................................. 60 Jorgensen, Chris ................................................................................................................................................... 91 K Kagawa, Toyohiko ............................................................................................................................................. 130 Kallen, Dr. Horace M. ....................................................................................................................... 34, 39 Kapnick, W. W. ................................................^ 189 Katt, Herbert ......................................................................................................................................................... 92 Knight, Harold V. ............................................................................................................................................. 127 Labor and Cooperatives ........................................................................... 13, 36, 46, 91, 173, 174 Labor and Cooperative Leaders Meet at Akron ........................................................................ 91 Labor Conditions of Cooperatives vs. Private Employees in Sweden ........................ 36 Laski, Harold ......................................................................................................................................................... 116 Laval University ................................................................................................................................................... 31 Law, Cooperatives and The ........................................................................................................................ 66 Law Makes Me Pay More But My Cooperative Gives It Back, The ........................... 179 League of Campus Co-ops Takes Permanent Form .................................................................. 123 Lehtin, Laurie L. ................................................................................................................................................ 105 Legislative Program .................................................................................... ...... .... ... . 2 O O .... ...................... »j Lewis, John L. ..................................................................................................................................................... 2 Ligutti, Father Luigi ........................................................................................................................... 130, 174 INDEX INDEX PAGE Liimatainen, William ....................................................................................................................................... 150 Lincoln, Murray D. ............................................................................................................ 18, 91, 93, 149 Lord Helps Those Who Help Each Other, a review of film ............................................. 45 Lorraine Cooperative Union of Nancy, France ........................................................................... 163 Lyon, B. W. ....................................................................... Ill M Maintaining Democracy in Siveden, a review ..........................J.................................................. 143 Mann, George C. ................................................................................................................................................ Ill Masters of Their Otm Destiny, a review .......................................................................................... 174 McWilliams, Carey .......................;..................................................................................................................... 191 Medicine, Cooperative ............................................................................................................... 14, 102, 125 Metzger, T. Warren .......................................................................................................................................... 184 Midland Cooperative Wholesale .......................................... 12, 29, 79, 81, 85, 124, 143 Midland Cooperative Wholesale Year Book, a review ......................................................... 143 Midland Goes From Gasoline to Groceries ................................................................................. 85 Monthly Survey of Business, A. F. of L. .......................................................................................... 24 Mosaic Windows, a review ........................................................................................................................... 190 Morrison, Dr. Charles Clayton ............................................................................................................... 83 Movies for Cooperative Education ......................................................................................................... 42 Murphy, Ray ......................................................................................................................................................... 190 Myers, James ................................................................................................................................................ 91, 149 Myrdal, Mrs. Alva .....................................................!................................_..................................................... 187 Myrdal, Gunnar ................................................................................................................................................... 143. N National Association of Manufacturers ............................................................................................. 19 National Consumers Cooperative Organization, A .................................................................. 6 National Cooperatives ...................................................................................................... 12, 29, 53, 124 National Cooperative Movement, A ...................................................................................................... 3 National Education Association ............................................................................................................... 14 National Farm Institute ................................................................................................................................. 35 National Recognition ...................................................................................................................................... 14 National Resources Committee ................................................................................................... 177, 191 Need and Method of Teaching Consumers Cooperation in Secondary Schools 27 Neutrality, Cooperative ................................................................................................................................. 146 New Cooperative Publications .................................................................................................................. New History of the CWS, a review ...................................................................................................... Norris Bill S. 2605 ................................................................................................................................. 131, North Dakota State Division of Cooperatives .............................................................................. 79 Northern California Cooperative Council .............................................................................. 13, 173 Northern States Cooperative Youth League .................................................................................... 172 Northern States Women's Cooperative Guild .............................................................................. 31 Norway, Cooperation in ....................................................................................................................................136 o Odhe, Thorsten ................................................................,.._ 98 Ohio Farm Bureau Cooperative Association ............................................................ 13, 47, 171 15 95 163 PAGE Ohio Rural Leaders Plan Education for Democracy ............................................................... 93 Operating Results of Consumers Cooperation in the United States in 1937, a review 69 ..................................................................................................................... oy Organized Labor and Consumer Cooperation, Conferences .................................... 30, 91 Outline Primer of Cooperative Principles, a review ....................................................... Ill 13 Pacific Supply Cooperative ........................................................................................................................... Page, Walter Hines .............................................................................................................................. 157, 180 Peace and Cooperatives, Special Edition ..................................................................... 145 to 160 Peace, Directors Statements on ............................................................................................................... 147 Pennsylvania Consumers Go Into Production .............................................................................. 184 Pennsylvania Farm Bureau Cooperative Association .......................................... 13, 79, 171 Play Co-op, The .................................................................................................................._............................. 188 Plays, Peace, reviews of ................................................................................................................................. 160 Poole, Lee C. ............................................................................................................................................._ 123 Present Position of Adult Education in Sweden, a review ................................................... 110 Private Dealers and Cooperatives ............................................................................................................ 19 Prominent Americans Study Cooperatives in Scandinavia ................................................ 177 Publicity and Education Conference, Cooperative ............................................................ 47, 105 R Racine Consumers Cooperative Society ............................................................................................. .188 Rauschenbusch, Walter .................................................................................................................................... 98 Recent Co-op Articles ....................................................................................................................................... 16 Recreation, Cooperative ..................................................................... 47, 72, 108, 172, 188, 189 Recreation Materials, New ........................................................................................................................... 189 Recreation School, National Cooperative ..................................................................... 47, 72, 108 Redfern, Percy ..................................................................................................................................................... 95 Religious Attitude and the Consumer Economy, The ............................................................ 39 Reserves Before Dividends ........................................................................................................................... Resolutions, National Cooperatives ...................................................................................................... Reviews .......................................... 48, 64, 76, 94, 95, 110, 111, 126, 127, 143, 174, 190 Reynolds, Quentin .................................................................................................................................... 2, 129 Road to Ruin, The, a review ........................................................................................................................ 190 Roberts, Dr. Kingsley ....................................................................................................................................... 102 Rochdale Institute .................................................................................................................................... 15, 31 Roosevelt, Mrs. Eleanor ................................................................................................................................. 2 Rural and Industrial Conference ............................................................................................................ 142 Rural Credit Unions .......................................................................................................................................... 167 Rural Youth Councils of Ohio ................................................................................................... 172, 189 Russell, George W. (AE) ............................................................................................................... 115, 151 San Diego Beneficial Society ..................................................................................................................... 105 Saskatchewan, Province-wide Conference .......................................................................................... 125 Scandinavia Synthesizes Individual Liberty and Group Unity .......................................... 115 35 53 INDEX PAGE Should Cooperative Shares Be Made Liquid .................................................................................... 133 Siegler, Carlton John ....................................................................................................................................... 27 Silvey, Ted F. .....................................................................................................................................^^ 91 Smith, Charles ...................................................................................................................................^ 110 Smoots, Herbert W. .......................................................................................................................................... 31 Southern Conference on Cooperation ....................................................................................... 79, 90 Speaking From Vermont, a review ......................................................................................................... Ill Spiritual Conflict, The ................................................................................................................................... 151 Statistical Handbook of Farmers Cooperatives, a review ...................................................... 100 Statistics of Farmers Marketing and Purchasing Cooperatives, 193J-38 Marketing Season, a review ............................................................................................................... 76 St. Francis Xavier University ............................................................................................................ 30, 109 Stolpe, Herman ...................................................................................................................................................... 126 Structure of the American Economy, a review .............................................................................. 191 Student Cooperatives .............................................................................................................................. 15, 123 Survey of Cooperative Medicine Today, A .................................................................................... 102 Tanner, Vainno ...................................................................................................................................................... 179 Taylor, Perry ............................................................................................................................................................ 92 Ten Years of Cooperation: Eastern Cooperative Wholesale ............................................. 93 Tenancy in Iowa ................................................................................................................................................... 18 Thompson, Glenn W. .................................................................................................................................... 105 Tichenor, George .....L............................................................................................................... 93, 117, 189 To See Ourselves As Others See Us ...................................................................................................... 95 Tompkins, Father J. J. ........................................................................................................................... 98, 114 Tour, European ..........................:........................................................................................................................... 48 Tour, Nova Scotia ............................................................................................................ 15, 48, 109, 142 U United Cooperatives .......................................................................................................................................... 31 United States Bureau of Labor Statistics .......................................................................................... 12 Urban Cooperative Organization, First Steps in ........................................................................... 164 W Wage Earners Health Association ......................................................................................................... 107 Wallace, Henry A. .............................................................................................................................. 116, 142 War For Profit ...................................................................................................................................................... 180 War, What For? Profits! ........................................................................................................................... 157 Warbasse, James P. .............................................................................. 4, 32, 64, 73, 95, 149, 154 Warbington, L. F. ................................................................................................................................................ 121 What An Opportunity .................................................................................................................................... 116 Where the World is Being Re-made ................................................................................................... 109 Why Poverty—How Plenty ........................................................................................................................ 24 Wisconsin Cooperative Week .................................................................................................................. 30 Workmen's Mutual Fire Insurance Society ........................................................................ 13, 179 World Congress on Education for Democracy ........................................................................... 131 WPA Cooperative Project ........................................................................................................................... 31 À I " l A National Cooperative Movement Perry L. Green Freedom of the Individual in Democracy James P. Warbasse A National Consumers' Cooperative Organization E. R. Bowen Cooperative Highlights of 1938 Wallace J. Campbell JANUARY 1939 WE GREET THE NEW YEAR With New Offices: Opening executive offices at 608 South Dearborn Street, Chicago, in addition to our New York office, has delayed the January issue but promises to speed up and improve future issues. With a New Size and Format: To streamline your national magazine, to make it fit your pocket, to increase its economy we adopted a Digest size. With Important Articles: On Cooperative finance, education, leg islation, credit, administration and phi losophy promised for early publication. With the Possibility of: A larger (24 or 32 page) national magazine if you will help us boost the circulation. Send your subscription today— $1 a year — $2 for 27 months THE COOPERATIVE LEAGUE 167 West 12th Street, New York City CALENDAR OF COMING EVENTS Consumers Cooperative Association Co-op Employees Training School, North Kansas City, Missouri, January 8-15; January 15-22. Midland Cooperative Wholesale, Man agers' Institute, January 30-February 25. Rochdale Institute, Spring Session, includ- f ing Grocery Management Training Course, February 6, New York City. Ohio Farm Bureau Cooperative Associa tion, Annual Meeting, Columbus, Feb ruary 14, 45.' Cooperative and Labor Institute, Racine, Wisconsin, February 24, 25, 26. Midland Cooperative Wholesale Mid winter Conference, Milwaukee, Febru ary 23-25; Minneapolis, March 2-4. Board of Directors, Cooperative League of the U.S.A., Chicago, March 13. National Cooperatives, Annual Meeting, , Chicago, March 14, 15. THE COOPERATIVE LEAGUE 167 West 12th Street, New York City 608 South Dearborn, Chicago DIVISIONS: Auditing Bureau, 167 West 12 St., N. Y. C. Medical Bureau, 5 E. 57 St., N. Y. C. Design Service, 167 West 12 St., N. Y. C. Rochdale Institute, 167 West 12 St., N. Y. C. Clusa Insurance Service, 1^5 Kent Ave., Brooklyn, N. Y. AFFILIATED REGIONAL COOPERATIVES Name Central Cooperative Wholesale Consumers' Cooperatives Associated Consumers Cooperative Association Cooperative Book Club Cooperative Distributors Cooperative Recreation Service Cooperative Wholesale, Inc. Eastern Cooperative Wholesale Farm Bureau Cooperative Ass'n Address Superior, Wisconsin Amarillo, Texas N. Kansas City, Mo. 118E. 28 St., N.Y. 116E. 16 St., N.Y. Delaware, Ohio 2301 S. Millard, Chicago 135 Kent Ave., Bklyn Columbus, Ohio Publication Cooperative Builder The Producer-Consumer Cooperative Consumer Readers Observer Consumers Defender The Recreation Kit Farm Bureau Mutual Auto Insurance Co. Columbus, Ohio Lansing, Michigan St. Paul, Minn. Seattle, Washington Indianapolis, Ind. Minneapolis, Minn. Chicago, 111. Walla Walla, Wash. Harrisburg, Penn. Indianapolis, Ind. 227 E. 84th St., N. Y. E.C.L. Cooperator Ohio Farm Bureau News Ohio Farm Bureau News Michigan Farm News Farmers' Union Herald Grange Cooperative News Hoosier Farmer Midland Cooperator Penn. Co-op Review Farm Bureau Services Farmers' Union Central Exchange Grange Cooperative Wholesale Indiana Farm Bureau Coop. Association Midland Cooperative Wholesale National Cooperatives, Inc. Pacific Supply Cooperative Pennsylvania Farm Bureau Coop. Ass'n United Cooperatives, Inc. Workmen's Mutual Fire Ins. Society DISTRICT LEAGUES Central States Cooperative League 2301 South Millard Ave., Chicago, Illinois Eastern Cooperative League 135 Kent Ave., Brooklyn, N. Y. Northern States Cooperative League Sexton Building, Minneapolis, Minnesota California Co-op Education Ass'n 1676 E. 85 Street, Los Angeles, Cal. Northern California Co-op Council 372—40th Srreet, Oakland, Cal. National Cooperative Women's Guild Box 1000, Superior, Wisconsin CONSUMERS' COOPERAT/ OFFICIAL NATIONAL JOURNAL OF THE CONSUMERS' PEACE - PLENTY • DEMOCRACY Volume XXV. No. I JANUARY. 1939 Ten Cents Cooperative Movement Acts to Make 1939 a Happy New Year Happiness is more than wishful dreaming of a future cooperative society— it requires resolute action on all fronts. While local and regional cooperative development has been noteworthy during the past few years, we all have to admit that national development has not been equally successful. But the necessity of greater national action finally culminated in the closing months of 1938 in the Movement's taking what we believe history will appraise as a number of giant strides which 1939 and future years should more clearly demonstrate. After five years of thinking and discussion, The Cooperative League and National Cooperatives, or the national education and economic organizations of the'Movement as they are commonly described, have laid the groundwork for wider national action which should be of great significance. We start 1939 with inter locking directorates of regional representatives, with interlocking executive com mittees, with joint executive offices and with the financing of national education and legislation equitably based on a uniform 5-cents-per-member of commodity and insurance cooperatives. There is a feeling in the Movement that we are "going places" nationally. It is for the democratically elected directors and managements of our regional and national cooperative associations to make good on the high hopes of the members and build on the groundwork that has been laid a national move ment in the United States which will be strong enough to cope with and conquer the giants of monopoly which oppress us. An organ to spread the knowledge of the Consumers' Cooperative Movement, whereby the people, in voluntary association, purchase and produce for their own use the things they need. Published monthly by The Cooperative League of the U. S. A., 167 West 12th St., N. Y. City. E. R. Bowen, Editor, Wallace J. Campbell, Associate Editor. Contributing Editors: Editors of Cooperative Journals and Educational Directors of Regional Cooperative Associations. Entered as- Second Class Matter, December 19, 1917, at the Post Office at New York, N. Y., under the Act of March 3, 1879. Price $1.00 a year. Cooperators are the "Powerful Meek". Professor Walter Rautenstrauch of the industrial engineering department of Columbia University, who is a loyal and active cooperator, reports that he has discussed with some of his language authority friends among the faculty the question of a modern version of the Greek word "Praos," which has been previously interpreted as meaning "meek." They are in agreement that a correct modern trans lation might well be "Blessed are the cooperarors, for they shall Inherit the earth." * * * National Education and Legislative Programs to be Developed Democratically The preliminary plans which the directors of the Cooperative League and Na tional Cooperatives have adopted will begin to take more definite shape after the first of January 1939. The development of broader national educational and legislative programs will be based on democratic procedures in every way. Special meetings will be called of educational directors and legal representatives of regional coop eratives to consult with committees of the directors and with the staff, who together will formulate programs of action for these divisions of the movement to be carried out by the executives. There will be two rather distinct phases of these develop ments. The first will have to do with the unifying of the educational and legislative programs of the various regional associations so that each may take advantage of the best experience and judgment of all other groups. The second will be the development of broader education and legislative programs of a national character. Special divisions of the Cooperative League will be organized in due time to carry on these functions. Suggestions are in order and will be gratefully received from any who feel that they have worthwhile proposals to offer. * * * Some Thoughts Which We Should Turn Into Resolute Actions Eleanor Roosevelt says "The age of cooperation is here to stay." This will be true if we resolve to extend democratic cooperation into economics. * * * John L. Lewis says "If this government gives the workers what they need— a job, a home, enough to provide for their families—then the workers will see to it that no ill befalls that kind of government." But why should we depend on the political government to give us incomes, employment and ownership? If we do we'll have some form of dictatorial State. What we need is to build consumer, producer and public organizations, independent of the political government. We might all get "bread" through the political State as other nations are attempting, but if we do we'll wake up to find the "stone" of paternalism around our necks. * * * Quentin Reynolds says "Self-help was the cornerstone of the American tra dition and the democratic form of government was designed and adopted to preserve the structure resting on it." In other words, a democratic government can only be a coordinating agency through which we legalize and enforce agreements entered into voluntarily by individuals or groups to enable them to help themselves and benefit society as a whole. The Hearst New York Sunday Aîirror says in its department "Straws in the wind that make headlines of tomorrow" that "The cooperative movement in America . . . will make history before 1940" and cites as evidence the fact that "the co-ops are the backbone of the 'Swedish Way' to prosperity." A good resolu tion for 1939 would be to Scandinavianize America and make good on this prediction. 2 Consumers' Cooperation New Year's Thoughts of a Cooperative Employee YESTERDAY I was a part of a capitalistic economy which is contracting and is rapidly increasing poverty, unemployment and tenancy. I was employed by a Board of Directors who were undemocratically chosen by proxy votes to represent absentee owners whose primary interest was in personal speculative profits. I was constantly checkmated in any effort to put economic liberty, equality and fraternity into practice. TODAY I am part of a cooperative economy which is expanding and is steadily increasing incomes, employment and ownership. I am employed by a Board of Directors who were democratically chosen by delegates to represent active owners whose primary purpose is the general welfare of all. I am able to feel that every effort will help to build a cooperative economy of plenty and peace for all. ' TOMORROW I hope that each day of the New Year of 1939 and the years thereafter will accel erate the speed at which others will break the shackles of the old order which bind them and enter into the great experience of cooperative membership and employment. * * * GUEST EDITORIAL A National Cooperative Movement Perry L. Green, President Ohio Farm Bureau Cooperative Ass'n There are two -phases of the cooperative movement which need to be empha sized. The broader one of the two is the meeting of the general social needs of the people; the other is the building of a business set-up whose provisions compel general obedience to methods of procedure which contribute to the broad social needs of the people. We have gone along for quite a few decades without any emphasis having been placed on the desirability of having our forms of corporate business comply with such social needs. The cooperative movement, taking into consideration these two general principles which «hould apply, will, in its general business operations, be supported by social ideals which are practically lacking in any other form of business. It has the further advantage of rendering the same service to people that any other form of business is capable of rendering even though there is little, if any, appreciation of the real motivating social desire behind it being recognized by people generally. The cooperative movement, if it is to accomplish the maximum of results in a minimum of time, should not be compelled to wait until a full measure of under standing of consumer cooperation dominates the thinking of the people. The same kind of aggressiveness on the part of cooperative leaders that prompts the action of the leaders of business for private profit, if persisted in on a federated basis for a long period of time, will as unconsciously lead the people out of the meshes of a restricted distribution system as they have been unconsciously, led into it. It seems to me that the important problem before us now is to consolidate our efforts on a nation-wide basis in order that the movement as a whole may have the benefit, in a large way, of these two contributing forces which I have tried to designate. January, 1939 3 THE FREEDOM OF THE INDIVIDUAL IN DEMOCRACY Democracy guarantees to each member of a society the right to influence other members. This influence is exercised for the purpose of inducing a majority to favor some particular motion or project, so that, when a question comes to a vote, the majority will support the proposal. Efforts to induce people to vote one way or another are a part of the provisions of democracy. When a member of a democratic or ganization is about to attend a meeting and present a resolution, if on his way to the meeting he passes the houses of four different members, two of whom will support his resolution at the meet ing and two of whom will not, he na turally stops at the houses of the first two and urges them to come to the meeting. That is democracy. Democracy Demands Freedom and Truth On the floor of a democratic meeting an individual gets up and proceeds by his discussion to influence members of the meeting to do something he wants them to do. As a matter of fact, when he presents his resolution or any other proposition, democracy permits him to present it from the standpoint of its vir tues with the purpose of having it adopted. If no one presents the obverse side, so much the greater is the possibility of its acceptance. These are approved and natural methods which prevail in democ racy. They are the privileges of all mem bers. The characteristic of democracy is that it gives each individual the oppor tunity to influence other individuals in the interest of any particular project which the individual desires to promote. Others have the right to refuse to con form, or they may set up other projects as they see fit. Democracy can demand only two things: freedom and truth. James P. Warbasse An individual in a democratic organ ization has the right not only to be con cerned that voting members agree with his point of view but also that they ex press themselves by voting for it. Now it happens that in the cooperative move ment people cannot express themselves unless they are present to vote. For this reason, if it is a right of democracy to influence opinions, it is also a right of democracy to use influence to see that those opinions are expressed by voting. This means that the individual who would promote a project is justified in seeing that sympathetic members vote if they are present and that they make them selves present in order that they may vote. This is sometimes called "getting out the vote." But are invidious terms, such as "packing the house," "controlling the convention," and, "undue influence," justified? If they are, then that is pre cisely what a speaker who has good logic, facts, and presence does when his speech wins adherents to a cause. Persuasion is the Privilege of All Democracy is a scheme for giving everybody a chance by freedom of action, not only to win adherents to a proposal but to induce those adherents to come to a meeting and register themselves by voting. Winning adherents means little unless it is followed by the use of the franchise. "Packing the house" is always done by the "other side." "Our side" never packs a house; it only uses demo cratic persuasion which is the privilege of all. When it comes to a paid employee, who is also a member of an organization doing the same thing, I raise the ques tion, has he not a similar right? Democ racy stands for the freedom of the indi vidual. When an individual accepts em ployment in a cooperative society, does he then relinquish his freedom of action as a member of a democratic society? Why should an employee be expected to give up the democratic right of influ encing other members of a society which as a non-employee member he would have possessed? Has democracy a right to discriminate against a certain class of its membership? Employees Should Not Be Disfranchised If this thought is carried further, let us imagine the expansion of cooperation to the position in which all of the mem bers are employed by the cooperative so ciety. This is the ideal toward which cooperation aims. Under those circum stances, do all of these employees lose their individual right to act as free mem bers of a democratic society? If they do, to what extent? If in any society the members lose their right of independent individualistic action and must be neutral in all con troversial matters, does not such an atti tude bring democracy around to the very qualities of fascism to which we object? If all members in a meeting are em ployees of the society, and if they must all be neutral and not exercise the free doms of democracy to influence opinions and to bring people to vote as they want, then the circle has been traversed, and democracy has come around to the point where fascism begins. This thing we call fascism is suppression of the right of the individual to think and to act inde pendently and to influence others to think and to act with him, even though he is in opposition to a prevailing policy or the opinion of the majority. There is much talk about democracy. But if democracy is really something val uable we must not only understand it, we must also respect it. Thus from the standpoint of democ racy, individuals are justified in activities to influence others and to see that they are present and vote. In this, they are acting wholly within their rights and in conformity to the principles as well as the practices of democracy. Neutrality is practiced in democracy when a cause is so strong and so gener ally approved that no persuasion is neces sary to assure its adoption. Then its pro ponent does wisely to stop at the two other houses and bring with him to the meeting the two members who are not for the measure. Then he may present before the meeting both the good fea tures and the objections. And this is done. Neutrality in democracy is practiced, but only under these circumstances; or when some one himself is really indifferent and presents both sides. But after all, it is in the clashing of interests and opinions that democracy gets its zest and proves its capacity to serve useful ends. The Role of a Cooperative Official Experience teaches that there are cer tain functions in which neutrality is essential. The chairman of a democratic meeting must be neutral as chairman. But democracy has no right to deny him his freedom outside of the chair. It is the office that must be neutral. Likewise there are other offices, secre tarial, educational, and otherwise, in which the office itself must not be parti san. That means that a paid official must serve all elements in the spirit of im- Ertiality. But that paid official cannot denied his personal privilege, external to his official functions, to have opinions and to express them. In these situations, good taste and expediency recommend the elimination of conspicuous partisan ship. Here the man and the office are two different things. But democracy at its best cannot deprive the man of his freedom of opinion and of action. Consumers' Cooperation • January, 1939 A NATIONAL CONSUMERS' COOPERATIVE ORGANIZATION E. R. Bowen (INTRODUCTORY NOTE: The subject of the national organization of the Consumers' Co operative Movement in the United States has been under discussion by various committees for several years: by the Constitution Commit tee, by a Committee appointed by the Coopera tive League, by a Joint Committee of the Co operative League and National Cooperatives, and by the Executive Committees of the two organizations. As a result, the following chart and explanatory statement was presented at a meeting of the newly elected Board of Di rectors of the League in November 1938, which after full discussion was accepted in principle and certain initial steps were approved in the way of uniform dues and joint executive offices. It was particularly emphasized in presenting the subject that it was entirely from the stand point of discussing a principle of national or ganization and that no position ivas taken as to how or when to complete such an organization, future action will be taken if and when determined upon after democratic discussion.) We have just celebrated the 150th anniversary of the joining of our states into a political union under a Constitu tion. Today we are faced with an eco nomic necessity similar to the political necessity which our forefathers met which calls for equally wise action on our part. Just as our forefathers formed a political union of all the states, so should we today, after thorough consideration, form in the same geographic area a more definite economic union of all regional consumers' cooperative associations and adopt a more specific national educational and economic program. Necessity of a National Consumers' Cooperative Organization In the days when our national political union was being organized, the slogan was coined that "thirteen staves and never a hoop will not make a barrel." Just so today, individual regional cooperatives, unless banded together into a strong na tional organization, will never become a powerful economic force. The greatest appeal for the national organizing of our political states was "united we stand, divided we fall." This is also applicable today to our economic cooperatives. The thirteen political states faced the common enemy of control by autocracy. Today each regional coopera tive is greatly handicapped against nation wide monopolies. But united together our regional cooperatives can check-mate and eventually supplant monopolies. While our forefathers removed from the shoul ders of the American people the political yoke of tyranny, they left for later gen erations the task of removing from the shoulders of the people of America the economic yoke of monopoly. Thomas Paine, who became the great advocate of a federal government, pro posed that a national political union be organized "when the states saw them selves wrong enough to be put right." Just so a national economic union of all regional consumers' cooperative associa tions is timely today, in view of the self- evident difficulties of regional coopera tives in acting alone. After our national political union was organized, Paine de clared that "this union was naturally produced by the inability of any one state to support itself against any foreign enemy without the assistance of the rest." No more today is any one regional co operative sufficient unto itself to resist the common domestic enemy of monopoly without the assistance of the rest. There would have been as much reason for any state failing to join a national political union as for any regional cooperative today attempting to "go it alone." It should not require argument to sup port the statement that no one regional or group of regionals less than all, can either purchase, distribute, produce or finance as economically or efficiently for their members as can all the regionals Consumers' Cooperation joined together in one national organiza tion. While some savings can be made in distribution by a separate regional as sociation and still further savings can be made in production by a group of re gionals, no effective attack to prevent the power of monopolies in finance, produc tion or distribution can be made except by a strong national organization of all regional consumers' cooperative associa tions. Again quoting Paine, "it is not in numbers (of states) but in a union that our great strength lies." So today, it is not the number of regional cooperatives which gives the cooperative movement its greatest strength—that strength lies in the potential power of an economic union of all. Paine declared that "Our citizenship in the United States is our national character. Our citizenship in any particular state is only our local distinc tion." Just so today we must be national and international cooperators as well as local and regional cooperators. functions of a National Consumers' Cooperative Organization We must learn what can best be done locally, regionally and nationally in the Consumers' Cooperative Movement. Each decision must be approached from the standpoint of the best interests of the whole movement rather than the inter ests of some individual or group of in dividuals. The injection of individualism into the making of decisions affecting the whole is most unfortunate, whether in the cooperative movement or elsewhere. No matter whether the function is any one of the six principal departments of the Consumers' Cooperative Movement, namely, Development, Organization, Commodities, Services, Insurance or Fi nance, there are certain parts which can best be done locally, others regionally and others nationally. As an example, consider the matter of publicizing the movement. No one ex- January, 1939 cept a representative of a local associa tion can handle local publicity effectively. Other publicity is likewise largely only of regional interest and can therefore only be handled effectively by a repre sentative of the regional. On the other hand, there are other matters of natiorial public interest which no regional could handle as well as all the regionals banded together into a national publicity representative. This also applies to mat ters of education as well as commodities, services, insurance and finance. Some decisions relative to whether a matter can be best handled by local or regional associations or by a national or ganization can be determined on the basis of judgment in advance; others will only be eventually determined after ex periment. It should also be added that no final judgment can ever be made; changing conditions will constantly call for changes in the distribution of func tions for the greatest economy and ef ficiency. Membership in a National Consumers' Cooperative Organization The Consumers' Cooperative Move ment the world over recognizes no basic difference between cooperative purchas ing associations organized on the basis of Rochdale principles by ultimate users. All consumers' cooperative associations are basically one and the same irrespective of the type of products purchased, whether vocational or household supplies, and irrespective of the residence of their members, whether rural or urban. All purchasing by ultimate users is an act of consumption. Consumers' Cooperatives might be described as users cooperatives. The Swedish Cooperative movement has published a pamphlet containing a chart showing the democratic organization of the people as consumers and producers, which clearly presents their interpretation of consumers' cooperation as an all- inclusive movement, with no differentia- tion between kinds of supplies or occu- pation of purchasers. The following is a summary of their chart: operatives as well as a national consumers' cooperative organization. Another factor which requires most Our Economic • Interests 1. Consumer or Buyer Interest 1 2. Producer or Seller Interest {1 . Consumer of 1 Household Goods 2. Consumer of Vocational Goods t General and Special Consumer Cooperatives f Seller of Goods 1 Marketing Cooperatives (_ or Services j" and Labor Unions In describing the Consumers' Coopera tive Movement in Finland, the president of the International Cooperative Alliance, stated that "We have two large consum ers' cooperative groups in Finland." In one of these groups both household and vocational supplies are handled by the same national association; in the other household and vocational supplies are handled separately. When asked the rea son for the separation by the latter group, the answer given by their general mana ger was that it was the result of "mistaken theorizing" in the early beginnings of the movement. In a lengthy communication, the agri cultural adviser for the Cooperative Union of Great Britain declares that there is no differentiation between kinds of supplies or occupations of consumers in the Consumers' Cooperative Move ment in that country. Even where two local cooperatives are separately organ ized in a community, the one handling vocational supplies and the other house hold supplies, both are members of the same national Cooperative Wholesale Society, which handles both types of products. There is a constantly growing tendency to break down the barriers between rural and urban residents and between voca tional and household supplies in Ameri can local and regional cooperative asso ciations. This removal of all such differ entiations is vital to the building of the strongest possible local and regional co- 8 careful consideration in the building of a strong national consumers' cooperative organization in America is that of over lapping territories by regional groups. In some cases two strong cooperative asso ciations are already in existence in the same territory. It would seem reasonable that both should now be members of a single national organization and that in time they should also join together into one regional association. Where there is now one strong regional association, it should most naturally be a member of the national organization. If there is a small regional in the same territory, ex tremely careful consideration should be given before admitting it into member ship in the national and thereby encour aging competition between cooperatives. It would be far better for the smaller association to join together with the larger. As a comparison, taking an illus tration from the political field, no one would think of encouraging the develop ment of a small political state within an other state. Why, then, should a second economic regional be encouraged to de velop within the territory of an already organized and strong economic regional? Type of a National Consumers' Cooperative Organization Three types of national organization have been experimented with in other countries. There is every reason why we should profit by their experience insofar as possible, recognizing that we have a problem which no small country faces in that we must unite large regional asso- Consumets' Cooperation ciations into a national organization. The three types of organizations might be described as dual, unit and unit-dual. Britain first organized the Cooperative Wholesale Society and a few years later organized the Cooperative Union. For many years the leaders of the Union sup ported profit-sharing and ownership by the workers in a factory rather than own ership by the consumers of the products of the factory. Eventually the consumer ownership principle proved its far greater practicability, but they had left in their wake a second organization with en trenched positions and powers which was harder to eliminate than the theory it originally supported and which organiza tion still continues. Today official leaders of both the Union and the Wholesale are outspoken in stating that the dual or ganization plan which they have inher ited is outmoded, uneconomical, inef ficient and cumbersome. One of the two groups in Finland fol lows the dual plan. However, one of their principal leaders states that if they were to organize today they would likely adopt the unit plan. It is said that other countries in Europe have "profited by Britain's mistake." Sweden tried out the dual plan of organ ization in its early years and shortly dis carded it for a unit plan in which edu cation and economic functions are integral departments of a single national organization. Switzerland, Denmark and Norway likewise adopted the unit plan after observing the results of the dual plan. The largest group in Finland, as well as the Cooperative Movement in France, are organized as combination unit-dual types, which are in effect unit organizations except for their separate legal incorporation. In Finland this group elects the same delegates who meet the first day as a union and the second day as a wholesale. The same directors are elected for both the union and the whole sale, who in turn elect the same general manager. In France the situation is simi lar. The same delegates are elected for January, 1939 both the union and the wholesale, who elect the same directors. The directors then elect three managers of the whole sale and three secretaries of the union. Wherever the unit plan of organiza tion has been adopted in these countries, their leaders are strong advocates of the unit type; wherever the dual or the unit- dual plan has been adopted, leaders state frankly that they wish that they were organized on the unit basis. It would seem that, since the overwhelming testi mony of the leaders in these outstanding cooperative countries is in favor of the unit plan of organization, we could well profit by their experience and consider favorably the building of a single unit national organization here in our early flexible stages before we become organ izationally rigid and extremely difficult to change. In the United States we have not gen erally discussed or thought through thor oughly the question of the best type of a national organization. We have, in fact, neither of the three types of organ ization as in Europe. We have the unit type of locals, the unit type of regionals (with two exceptions which are appar ently in the process of becoming unit organizations) and yet have two sep arately organized national bodies of the dual type. If we believe in unit locals and unit regionals, which we evidently do judging by the manner in which we have organized, then why a dual type of national organization? If we are to be consistent, should we not either change our locals and regionals to the dual type, or change our national organizations to the unit type to correspond to our local and regional organizations? Since the growing tendency is to elect to the board of directors of both our national organizations many of the same representatives of regionals, it would seem logical that they might best consider and decide policies as to all national matters as a single unit directorate, with committees of the directors for each of the major departments. A NATIONAL CONSUMERS' COOPERATIVE ORGANIZATION REGIONAL CONSUMERS' COOPERATIVE ASSOCIATIONS BOARD OF DIRECTORS OFFICERS- EXECUTIVE COMMITTEE DEVELOPMENT ORGAN COMMITTEE COMM RESEARCH PUBLIC ARCHITECTURE EDUCA PERSONNEL RECRE/ RELATIONSHIPS LEGISL 1 DIRECTORS DEPARTM ZATION COMMODITIES ITTEE COMMITTEE TV ENGINEERING TION PURCHASING TION PRODUCTION ^TION DISTRIBUTION ENTAL COMMITTEES SERVICES INSUR COMMITTEE COMrV HOUSING AUTO MEDICAL FIRE BURIAL LIFE MISCELLANEOUS CASUA GENERALAND DEPARTMENT MANAGERS ANCE FINANCE \ITTEE COMMITTEE ACCOUNTING AUDITING CREDIT LTV BANKING i DEVELOPMENT 1 [ORGANIZATION H COMMODITIES [~| SERVICES [| INSURANCE f] FINANCE TECHNICAL COMMITTEES DEVELOPMENT rjoRGANIZATIONFl COMMODITIES |~j SERVICES jj INSURANCE [I FINANCE The above chart has been drawn to apply particularly to a national cooperative organization. In time, as regional and local cooperatives develop in size, it is probable that whatever may be decided upon as the best distribution of functions by departments and divisions of a national organization will also apply to regional and local organizations as well. Chart of a National Consumers' Cooperative Organization To the end of initiating a thorough discussion of the subject of the best type of national organization for America, we present herewith a chart of a unit Na tional Consumers' Cooperative Organiza tion. The members of such a national or ganization would be the regional coop eratives, who in turn have as their mem bers the various locals. These regional cooperatives would be, in a national eco nomic union, somewhat similar to the states in our national political union. They would determine as to what func tions to transfer to the national and what to retain for themselves as regionals. Provision is made in the chart for regional cooperatives to organize them selves into distria groups for either edu cation or business if they so desire. Such district groups would be organized en tirely at the option of the regionals who desired to do so. Regional members of the national or ganization would pay uniform dues per member to the national for the support of the development and organization de partments which are not self-supporting and be entitled to equitable representa tion of delegates to the congress of the na tional organization. Such delegates would elect the board of directors of the national organization and determine as to national policies. For purposes of efficiency, the func tions of such a national organization are divided into six departments, namely: 1. Development Department; 2. Organ ization Department; 3. Commodities De partment; 4. Services Department; 5. Insurance Department; 6. Finance Department. The general term "Development De partment" is used to cover research, per sonnel, architecture and relationships. The general term "Organization Depart ment" is used to designate the four di visions of publicity, education, recreation and legislation. Likewise the chart lists under each of the other departments what might be considered as the major di visions. The board of directors would divide itself into six major committees for the more efficient handling of these depart ments. A general manager and depart ment managers to head up each of the six major departments would be selected by the directors. Each regional would nominate from its staff a representative to serve on a technical committee for each department. Each technical committee would con sult with and report to the manager of its department and also, where desirable, to the directors' committee. In turn, each department manager would consult with and report to the whole staff of managers and to the department committee of the board of directors. The chart accompanying is the result of lengthy study and discussion and incor porates suggestions from many coopera tive leaders. It is not considered to be final but to present for further discussion and decision a more definite proposal for a National Consumers' Cooperative Or ganization than has been hitherto formu lated in such a specific manner. "THE LORD HELPS THOSE ... Who Help Each Other" The Harmon Foundation has just com pleted a three reel, 16 mm. silent motion picture describing how the miners, farmers and fishermen of Nova Scotia have lifted themselves out of dire pov erty through adult education and coop erative organization. Two months of camera work in Nova Scotia, four months of research and editing, and over a thousand dollars cash went into the production of this remark able cooperative film. The movie may be secured for a single showing for $4.50 and $2.25 for each additional showing or $13.50 for a week's engagement. For information write The Cooperative League or the Harmon Foundation, 140 Nassau Street, New York City. 10 Consumers' Cooperation January, 1939 11 Il™ l' COOPERATIVE HIGHLIGHTS OF 1938 Nineteen thirty-eight will go down in co-op history as a year of growth and coordination. While private profit business went through what it called the "Roosevelt Recession" and hit the lowest levels since '33 and made the most rapid "recovery" in history only because the preceding drop had been even more precipitous, America's consumer co-ops described their year with one word, Progress. In a few instances the dollar volume was down a few points because of lower price levels, but actual volume of goods and services handled continued to mount. National Cooperative Organization The Biennial Congress of The Coop erative League, meeting in Kansas City, October 12, 13 and 14 reported its membership as 965,000 as against 704,000 at the time of its 1936 Congress. From the Congress grew proposals for a coop erative financial agency to free the co operatives from dependence on outside financial sources and to mobilize co-op funds for more rapid expansion of coop erative distribution and production. The election to the board of directors of representatives of regional cooperative associations gave the national consumers cooperative movement a more democratic base. The Congress moved to strengthen the relations of organized consumers with organized labor and agriculture. Number One event of 1938 was the adoption in principle of a program look ing toward a greater coordination of the activities of The Cooperative League of the U.S.A. and National Cooperatives, Inc. Joint executive offices were opened in the Transportation Building, 608 South Dearborn, Chicago, January 1. (The League will also continue its New York office.) The coordination program will strengthen the education, legislative and economic activities of the organiza tions which serve a million members. Wallace J. Campbell Complete statistics are not yet avail able for cooperative business in 1938. But more than $440,000,000 worth of goods and services were handled by con sumers cooperatives in rural areas in the 1937-38 farm business year. Petroleum products handled by co-ops in both rural and urban areas topped $110,000,000 in 1937. Twenty-four hundred co-op stores with 330,000 members and $107,250,000 business were reported by the U.S. Bureau of Labor Statistics. Cooperative credit unions reported 2,000,000 members and assets well over $100,000,000 at the close of the year. Other cooperative activities for which summary statistics are not available include cooperative insurance, cafeterias, housing, rural electrification, telephone, book service, medical and burial cooperatives. Regional Cooperative Associations Five co-op grocery wholesales adopted a program of uniform labeling and have voted to adopt government grade labeling on CO-OP label products as rapidly as feasible. Eastern Co-op Wholesale, one of the group, has established its own test ing kitchen and model co-op store in its new Brooklyn warehouse to check all co op products and to train prospective em ployees. Cooperatives, already credited with breaking the commercial fertilizer monop oly consolidated their position as a "yardstick" when the Farm Bureau Co operative Association, Columbus, Ohio, and the Cooperative G.L.F. Exchange, Ithaca, New York, purchased a 100,000 ton fertilizer factory in Baltimore. Consumers Cooperative Association, North Kansas City, is completing a drive for funds to build the first co-op oil re finery in the U.S. and last year shipped oil to co-ops in France, Scotland, Bul garia, Estonia, Holland and Canada. Midland Co-op Wholesale, Minneapo lis, launched a program, in cooperation with its affiliated local cooperatives, to establish co-op grocery stores. Ohio co-ops purchased the site on which their 8-story "co-op skyscraper" stands in downtown Columbus. On completion of an anticipated $5,- 000,000 year, Farmers Union Central Ex change, St. Paul, announced a program which will consolidate co-op funds as a first step toward a co-op bank. A financial declaration of independence was approved by the annual meeting of Consumers Cooperative Association, North Kansas City, which is expected to put the organization on a spot cash basis with its member co-ops; this action plus the formation of a credit pool will elim inate as far as possible dependence on outside capital. Central Cooperative Wholesale, Su perior, wound up its twentieth year by launching one of its most ambitious steps into the field of production by purchasing a feed mill. The Pacific Supply Cooperative built its own warehouse and headquarters in Walla Walla, Washington, and arranged for wholesale facilities in Portland, Ore gon and Caldwell, Idaho. The Grange Cooperative Wholesale, Seattle, continued to expand its services and launched the Grange Co-op News as an educational service for local retail cooperatives affiliated with it. The Pennsylvania Farm Bureau Coop erative Association, Harrisburg, wound up the year with fifteen county co-ops organized and a wholesale volume of $1,250,000. Indiana Farm Bureau co-ops, with a record $6,600,000 business in 1937, entered their second year with co-op life insurance service and their fourth with co-op auto insurance. The Farm Bureau Mutual Auto Insur ance Company, Columbus, jumped from seventh to fifth place among the mutual casualty companies of the country. It started writing insurance in New York State under the sponsorship of Eastern Cooperative Wholesale, Brooklyn, in Jan uary and now serves 11 states. At the 12 Consumers' Cooperation January, 1939 year's end it reported more than 200,000 policy holder-members and assets near $6,000,OOQ. The Cooperative Life Insurance Com pany of America, Columbus, bought by the co-ops and transformed into a coop erative three years ago, increased its cover ages more than $8,000,000 last year. The Workmen's Mutual Fire Insurance Society, New York, reported at its 66th annual meeting a membership of 68,295 in 11 states. Cooperative Distributors, a mail order co-op with headquarters in New York, serving members in various sections of the country, started wholesaling a line of co-op drugs and cosmetics to retail co operatives. The Cooperative Book Club, New York, added a wholesale department during the year and is now serving gen eral, school and cooperative libraries and other institutions. Consumers Cooperatives Associated, Amarillo, outpost of the cooperative movement serving retail cooperatives in the panhandle of Texas and in parts of New Mexico and Oklahoma, continued to increase its buying activities. The Co operative Wholesale, Chicago, youngest co-op grocery wholesale, served a growing city co-op business. California cooperatives affiliated with the Cooperative Education Association, Los Angeles, and the Northern Califor nia Cooperative Council, Oakland, made plans to extend their joint buying. Relations with Other Movements The American Federation of Labor at its annual convention in Houston and the Congress of Industrial Organizations at its first annual congress in Pittsburgh gave cooperatives renewed endorsement. The Labor and Cooperative Confer ence held in Dillonvale, Ohio, Septem ber 16, 17 and 18 under the sponsorship of the Labor Committee of The Coopera tive League, drew together 160 represen tatives of organized labor, farm, credit union and cooperative organizations to discuss the need for increased consumer 13 III'I organization in the ranks of organized la bor. The Eastern Cooperative League sponsored a similar conference for New York and vicinity in April which was at tended by representatives of 40 unions and an equal number of cooperatives. The Committee on the Church and Cooperatives of the Federal Council of Churches sponsored Inter-Faith Confer ences on Credit Unions and Consumer Cooperation in Columbus, Washington, D.C. and Boston. The National Catholic Rural Life Conference discussed a report of its special Committee on Cooperatives at its annual convention. Pope Pius XI, in a letter from Cardinal Pacelli to Bishop Morrison of Antigonish, commended the cooperative and adult education move ment in Nova Scotia. The National Education Association, at its convention in New York in June, de clared that information about the coop erative movement should be made an in tegral part of the curricula of public schools and colleges throughout the country. National Recognition The Senate Committee on Unemploy ment and Relief called the General Sec retary of The Cooperative League of the U.S.A. to present evidence of the effect of the consumers cooperative movement in stabilizing business volumes, savings and employment. The American Economic Association, for the first time, invited a representative of the consumers cooperative movement to appear before its 51st annual conven tion. Four Governors, Aiken of Vermont, Lehman of New York, Benson of Min nesota, and LaFoIIette of Wisconsin, dorsed consumer cooperation and the Governors of Minnesota and Wisconsin set aside special Cooperative Weeks. The First Lady gave evidence of her contin ued interest in the movement when she declared : "The age of cooperation is with us to stay. . . . Where we find it con venient and valuable not only to 14 ourselves but to our neighbors, we should join in cooperative move ments." Among the visitors from European co operatives were: Albin Johansson, presi dent, and Axel Gjores, secretary, of Kooperativa Forbundet of Sweden; Reginald Gosling, president, and Wal ter Batley, member of the board, of the London Cooperative Society, largest retail cooperative in the world; J. M. Davidson and A. Buchanan, members of the board of directors of the Scottish Co operative Wholesale Society; Mrs. Elea nor Barton, former general secretary of the Cooperative Women's Guild of Great Britain; and Anders Hedberg, secretary for international questions, of Koopera tiva Forbundet. On the Educational Front Sixty educational directors, publicity men and editors attended the three-day Conference on Cooperative Publicity and Education held at Waukegan, Illinois in June. Immediately preceding the educational conference the Cooperative Society for Recreational Education held its Third Annual Summer School at Waukegan providing specialized training for those interested in cooperative recreation. The Eastern, Central and Northern States Cooperative Leagues held very suc cessful summer institutes offering both general and employee education. Eastern Cooperative League reported an increase of 86 per cent in membership last year. Cooperative Medicine became headline news when the U.S. Department of Justice filed suit against the American Medical Association under the anti-trust laws for its discrimination against the Group Health Association, a medical co op in Washington, D.C. The co-op hos pital in Elk City, Okla. completed a suc cessful year with plans to alter its legal structure to enable many more of its patrons to become active members. A health cooperative was launched in Su perior, Wisconsin, with the sympathetic support of the Wisconsin Medical Society. New Cooperative Ventures Three model towns built by the Farm Security Administration, Greenbelt, Mary land; Greenhills, Ohio and Greendale, Wisconsin have organized all their busi ness enterprises as cooperatives. Consumer Distribution Corporation, New York, founded by the late Edward A. Filene, is providing management service for the co-ops in Greenhills and Greenbelt and is cooperating with Midland Cooperative Wholesale, Minneapolis, which has a management contract for the operation of the enterprises at Greendale. The first co op movie theatre in the U.S. opened at Greenbelt in October. Rochdale Institute completed its first year as a national training school in con sumer cooperation in October. Twenty students a term have taken the training course. Circle Pines Recreation Center, spon sored by the Central States Cooperative League, Chicago, was the scene of a series of ten cooperative institutes running con secutively throughout the summer. Circle Pines is a delightful camp near Hastings, Michigan, built by the WPA and leased to the cooperatives. The Wisconsin Cooperative Housing Association, Madison, began construction on the first 22 homes in one of the first co-op housing projects since the de pression. Student cooperatives at the Universities of California, Oregon, Washington, Idaho, and Washington State College, or ganized the Pacific Coast Student League of College Cooperatives which will act as a clearing house of information to assist the organization of other campus co-ops and to help solve mutual co-op problems. One hundred and eighty-six American educators, ministers and cooperative leaders took part in four tours of Nova Scotia cooperatives and attended the Rural and Industrial Conference which drew together 1,000 farmers, miners, and fishermen from cooperatives in the Mari time provinces. Consumers' Cooperation January, 1939 National Broadcasts in 1938 Nation-wide broadcasts on the coopera tive movement during the year included: "Cooperatives and Peace," James Myers, Co lumbia Broadcasting System, February 26 "Cooperatives and Trade Agreements," Wal lace J. Campbell, National Broadcasting Company, March 6 "Cooperatives in Sweden," Albin Johansson, Columbia Broadcasting System, July 11 "The Danish Cooperatives," Ruth Bryan Owen Rhode, National Broadcasting Company, August 1 "Rural and Industrial Conference—Coopera tives in Nova Scotia," Dr. J. J. Tompkins, Dr. J. Henry Carpenter, Kenneth Leslie and Ida Gallant, National Broadcasting Company and Canadian Broadcasting Com pany, August 17 "Effects of European Cooperatives on Retail Trade," Anders Hedberg, international broadcast by short wave, WlXAL, Boston, September 27 "Preview of the Cooperative Congress," James P. Warbasse and Howard A. Cowden, Co lumbia Broadcasting System, October 11 "The Cooperatives Move Forward," round table from Co-op Congress, Murray D. Lincoln, A. J. Hayes and L. E. Woodcock, National Broadcasting Company, October 13 New Cooperative Publications By the year's end these new books had been added to a very comprehensive array of cooperative literature: "Cooperation: An American Way," John Daniels "The Lord Helps Those . . . ," the story of the Nova Scotia cooperatives, Bertram B. Fowler "Cooperatives in America," Ellis Cowling "Consumers Cooperation in Great Britain," American edition, Carr-Saunders and others "Principles of Cooperative Medicine," Dr. Michael Shadid "Manual of Cooperative Directors," V. S. Alanne The crop of new pamphlets included: "Cooperative Education," James P. Warbasse "A Tour of Nova Scotia Cooperatives" "Cooperatives and Peace," Harold Fey "Farmers and Consumer Cooperation," Koop erativa Forbundet "How Swedish Cooperatives Break Monopo lies," Albin Johansson and others "Course of Study on Consumers Cooperation," Minnesota State Department of Education "Report of the Cooperative Committee," Na tional Education Association 15 Hi 'H1 ni 11 «-- t*J t RECENT COOPERATIVE ARTICLES Best's Fire and Casualty News, November, 1938, "Our Cooperative Movement," Louis H. Pink. Business Week, December 3, 1938, "New Co-op Merchandising Plans," Eastern Coop erative Wholesale plans a training school, . a testing kitchen, and quality grades. • "The Canadian Hospital, September, 1938, "Co operation," an editorial. Commonweal, December 9, 1938, "Co-ops on the Chesapeake"—the Antigonish of the U.S., Harry Sylvester. Freeman, November, 1938, "Cooperators Prove Their Inadequacy," Milton Pixel. A Georg ist attacks the co-ops. Free America, November, 1938, "Community Hospital," Bertram B. Fowler. The story of Dr. Shadid and the co-op hospital at Elk City, Okla. October, 1938, "Cooperation: A Means Or An End," Raymond Scott. "Cooperation: A Means To An End," Bertram B. Fowler. A friendly debate in which Mr. Fowler seems to have the upper hand. Industrial and Labor Information, November 7, 1938, "Consumers Cooperative Societies in Spain." Based on a pamphlet recently published by the National Federation of Cooperative Societies of Spain. Journal of Adult Education, October, 1938, "A Teacher of Fishermen by the Sea," Benson Y. Landis. The philosophy of "the soul of the movement" in Nova Scotia. Journal of the National Education Association, October, 1938, "Study of Cooperatives in Schools." Recommendations of the N.E.A. Committee on Cooperatives. November, 1938, "How Swedish Coopera tives Educate the People," Albin Johansson. Condensation of Mr. Johansson's radio speech of last summer. La Femme Polonaise, June, 1938, "A Coopera- tist's Journey Through Poland," Stanistawa Gorynska. Interesting facts about the Polish cooperatives. The Messenger, December 15, 1938, "Holier Than Thou," an editorial based on the edi torial of the same name in Consumers Cooperation. Mjchaelman, Autumn, "What the Press Missed in Nova Scotia," Very Rev. V. F. Nicolle, S.S.E. The spirit behind the cooperative developments. Monthly Labor Review, October, 1938, "Opera tions of Credit Unions in 1937." "Coopera tive Purchasing by Farmers, 1936." News for Farmer Cooperatives, November, 1938, "Co-op Buying is Changing Agricul ture," J. A. McConnell. Pathfinder, December 24, 1938, "Co-ops—They Form a Giant Democratic Enterprise," 16 Background and current material on the cooperatives. Political Digest, December, 1938, "Consumers' Cooperatioh," General John Hartnett. The article carries the subtitle, "An American Way Out from Depressions, from Extreme Wealth and Poverty, from the Strain of Competition, and from War." Printers Ink Monthly, October, 1938, "How Swedish Cooperatives—and Why," Dr. Mauritz Bonow. A splendid article on KF's educational and advertising program—many excellent illustrations. Protestant Digest, November, 1938, "Fruits of the Cooperative Movement," Eiben M. Parkhurst. The spiritual values of coopera tion. Social Forum, December, 1938, "A Canadian Pioneer—Father J. J. Tompkins,"- E. J. Hatten. Social Frontier, December, 1938, "The Reli gious Attitude and the Consumer Econ omy," Dr. Horace M. Kallen. Sunday Mirror, Magazine Section, December 4, 1938, "Experiment in Utopia." Greenbelt, Maryland, is one year old—America's "Guinea Pig" town in cooperative economy. Talks, October, 1938, "K.F.," Albin Johansson. A reprint of Mr. Johansson's talk over the Columbia Broadcasting System. Tide, October 1, 1938, "Co-op Baiting"—the government's venture at Greenhills comes in for some. Zivns Herald, September 6, 1938, "Some Fruits of the Cooperative Movement," Elbert M. Parkhurst. New Cooperative Literature "Father Tompkins of Nova Scotia — A Teacher of Fishermen by the Sea," by Benson Y. Landis, republished from the Journal of Adult Education, 8 pages, 3 cents, available from The Cooperative League. "Index of Laws Pertaining to Cooperation," by V. Tereshtenko and research staff, WPA Cooperative Project, 52 pages, mimeo graphed, free, available from The Coopera tive League. MANAGER WANTED An expanding Consumers Coop erative in the midwest, gross busi ness for 1938 in excess of $100,000, requires a capable, well-trained manager, with some cooperative ex perience. Address, with full par ticulars, XY, Care of Cooperative League, U.S.A., 608 South Dear born, Chicago, Illinois. \ i Is This the American Dream? Editorial The Austrian Cooperative Bank Otto Grossman Why Poverty — How Plenty? AFL Survey of Business Teaching Consumers Cooperation In a Secondary School Carl+on John Siegler Cooperatives on the March February 1939 Consumers' Cooperation CONGRESS PROCEEDINGS— Now available at 25c. Complete reports of the llth Biennial Congress of The Cooperative League of the U.S.A. are now available. The reports jjs printed in full in the special November- December issue of Consumers' Coopera tion, are invaluable for your permanent records of the cooperative movement and will be in constant use as reference for anyone vitally interested in the progress of the cooperative movement. Because the proceedings were printed in Consumers' Cooperation they are avail able at the extremely low price of 25c. per copy, 5 copies for $1. Send your order today to: THE COOPERATIVE LEAGUE 167 West 12th Street New York City CALENDAR OF COMING EVENTS Ohio Farm Bureau Cooperative Associa tion, Annual Meeting, Columbus, Feb ruary 14, 15. Cooperative and Labor Institute, Racine, Wisconsin, February 24, 25, 26. Midland Cooperative Wholesale Mid winter Conference, Milwaukee, Febru ary 23-25; Minneapolis, March 2-4. Board of Directors, Cooperative League of the U.S.A., Chicago, March 23. National Cooperatives, Annual Meeting, Chicago, March 24, 25. Central Cooperative Wholesale, Annual Meeting, Superior, Wisconsin, April 15-16. Central States Cooperative League, and The Cooperative Wholesale, Inc., An nual Meeting, Chicago, April 22, 23, 24. THE COOPERATIVE LEAGUE 167 West 12th Street, New York City 608 South Dearborn, Chicago DIVISIONS: Auditing Bureau, 167 West 12 St., N. Y. C. Medical Bureau, 5 E. 57 St., N. Y. C. Design Service, 167- West 12 St., N. Y. C. Rochdale Institute, 167 West 12 St., N. Y. C. Clusa Insurance Service, Ii5 Kent Ave., Brooklyn, N. Y. AFFILIATED REGIONAL COOPERATIVES Name Central Cooperative Wholesale Consumers' Cooperatives Associated Consumers Cooperative Association Cooperative Book Club Cooperative Distributors Cooperative Recreation Service Cooperative Wholesale, Inc. Eastern Cooperative Wholesale Farm Bureau Cooperative Ass'n Address Superior, Wisconsin Amarillo, Texas N. Kansas City, Mo. 118E. 28St.,N. Y. 116E. 16 St., N.Y. Delaware, Ohio 2301 S. Millard, Chicago 135 Kent Ave., Bklyn Columbus, Ohio Publication Cooperative Builder The Producer-Consumer Cooperative Consumer Readers Observer Consumers Defender The Recreation Kit Farm Bureau Mutual Auto Insurance Co. Columbus, Ohio Lansing, Michigan St. Paul, Minn. Seattle, Washington Indianapolis, Ind. Minneapolis, Minn. Chicago, 111. Walla Walla, Wash. Harrisburg, Penn. Indianapolis, Ind. 227 E. 84th St., N. Y. E.C.L. Cooperator Ohio Farm Bureau News Ohio Farm Bureau News Michigan Farm News Farmers' Union Herald Grange Cooperative News Hoosier Farmer Midland Cooperator Penn. Co-op Review Farm Bureau Services Farmers' Union Central Exchange Grange Cooperative Wholesale Indiana Farm Bureau Coop. Association Midland Cooperative Wholesale National Cooperatives, Inc. Pacific Supply Cooperative Pennsylvania Farm Bureau Coop. Ass'n United Cooperatives, Inc. Workmen's Mutual Fire Ins. Society DISTRICT LEAGUES Central States Cooperative League 2301 South Millard Ave., Chicago, Illinois Eastern Cooperative League 135 Kent Ave., Brooklyn, N. Y. Northern States Cooperative League Sexton Building, Minneapolis, Minnesota California Co-op Education Ass'n 1676 E. 85 Street, Los Angeles, Cal. Northern California Co-op Council 372—40th Street, Oakland, Cal. National Cooperative Women's Guild Box 1000, Superior, Wisconsin CONSUMERS' COOPERATION OFFICIAL NATIONAL JOURNALOFTHE CONSUMERS' COOPERATIVE MOVEMENT PEACE • PLENTY- DEMOCRACY Volume XXV. No. 2 FEBRUARY, 1939 Ten Cents Consumers' Cooperation Simplified We are indebted to Arthur W. Baum, author of the article "Consumers Try Cooperation" in the February issue of Country Gentleman, for the following simplified description of a Consumers' Cooperative which he used in his intro duction : " 'Now look,' Freckles piped, 'you got a nickel, and I got a nickel. You can git five of them lemon balls with orange stripes for your nickel and I can git five for mine. But the store man'll sell ten of 'em for nine cents, and for the other penny—' That was as far as he ever got. Pigtails, although a little slow in her class arithmetic, was pure lightning in front of a glittering candy case. 'We can get two licorish whips,' she finished promptly. 'That's elegant.' By the miracle of joined purchasing power they had achieved eleven cents worth of living between them—for a dime." ^ ^ -a* "Learning is not by force. You can't get into a man's brain with a monkey- wrench and change his mind. You can show him the light, from that on he has to take the steps himself." —Dr. M. M. COADY, Director Extension Department St. Francis Xavier University An organ to spread the knowledge of the Consumers' Cooperative Movement, whereby the people, in voluntary association, purchase and produce for their own use the things they need. Published monthly by The Cooperative League of the U. S. A., 167 West 12th St., N. Y. City. E. R. Bowen, Editor, Wallace J. Campbell, Associate Editor. Contributing Editors: Editors of Cooperative Journals and Educational Directors of Regional Cooperative Associations. Entered as Second Class Matter, December 19, 1917, at the Post Office at Netv York, N. Y., under the Act of March 3, 1879. Price $1.00 a year. "Economic Democracy Is Users' Ownership" says Murray D. Lincoln In his annual address as Secretary of the Ohio Farm Bureau Federation, Murray D. Lincoln defined democracy in business as follows: "My understanding of economic democracy is the ownership and control of economic institutions by the people who use their services." "Users' ownership" is a good phrase. It is all-inclusive. It covers individual ownership of farms and homes. It covers ownership by cooperatively organized consumers and producers of the businesses and banks which they "use." It covers ownership by the people of the utilities which they "use." A "users-owned" world is what cooperators intend to organize. * * * Did You Get Your Share of the 1938 U. S. Income? The estimated total income of Americans in 1938 was $64,000,000,000. On the basis of approximately 30,000,000 families this would mean an average of a little over $2,000 per family. In 1929 we produced $3,000 per family, or half as much more. Two questions are pertinent: Why are we satisfied now to produce sixty billion when we once produced ninety billion—How should the national income be divided per family? These questions cannot be dodged. They represent the basic problems of ethics in division of income and efficiency in production. * * * Ownership of the Good Earth The Report and Recommendations of the Farm Tenancy Committee of the Iowa State Planning Board, published under this title, contains many challenging statements and statistics which cooperators should read. Fifty per cent of Iowa farms are now tenant operated; 58% of Iowa farm acreage is tenant operated; 75% of the value of all farms belongs to landlords and over-burdened debtors. On the basis of these cold statistics, the Committee makes these general statements : "The good earth was never intended ... to be a source of benefit to a few and a mere means of servile labor to others. "Ownership of productive property is essential to economic freedom, hence to political freedom. And we, unhesitatingly state that owner ship of land by the family that lives upon it and operates it, is the best way to secure and retain these manifold freedoms and thus achieve permanency for the free, democratic institutions we cherish." Under the heading "General Recommendations suggested for Serious Consid eration After Careful Study," we are delighted to note the following: "The proper application and practice of cooperative credit, con sumers' and producers' cooperatives, and processing cooperatives might be the very steps needed for Iowa farmers to retain the wealth they produce and thus achieve a state of deserved prosperity and help create a better situation for the whole nation." Iowa is on the march to recover ownership of its farms by the farmers when such a report is made by a state-wide committee of 45 members. The implications of the report are that some lowans are beginning to understand that the only way to recover farm ownership is by the prior recovery of ownership by the people of the businesses and banks of every community through the organization of coop eratives. The Committee might well have substituted the word "are" for "might be" in the above, since Denmark has positively proven that cooperative purchasing, marketing and credit are able to completely eliminate tenancy. 18 Consumers' Cooperation Your real power is in the money you spend. Since all production is ulti mately for consumption, your conscious use of your purchasing power will enable you to eventually control production in your own interests. * * * And Non>, Dear Children — This morning, dear children, you are about to learn the "why and wherefore of our American way of living" through the kindness of your dear friends the National Association of Manufacturers of the United States of America. "Two kinds of government have developed . . . the first is individ ualistic, the second collectivistic . . . the American system is individualistic. . . . Under the American system we have freedom and equality of opportunity." What is your question, Willy? You want to know why in this America of equal opportunity your father cannot get a job? It is because the collective theorists inter fere with the practical process of individualism, Willy. Now let me read on. "The ability of the consumer to buy represents the dynamic force of the system." Your question, Lilly? You ask why your mother hasn't the ability to buy more to eat and wear? Well, I'm sorry, but we cannot talk about such personal matters in school. Those who like this sample and wish to learn more about "The American Way" and "The American Standard of Living," etc., etc., can get free copies of eight such booklets beautifully printed and illustrated and full of such economic bunk from cover to cover by writing for "You and Industry Series" to 14 West 49th St., New York City. It is surely high time that cooperators in other states offset this propaganda by following the example of Wisconsin, Minnesota and North Dakota and providing for the teaching of the true economic facts to their children. * * % What Will Happen to Private Dealers as Cooperatives Develop? This question is often asked at meetings where cooperatives are discussed. The best answer is a counter question, "What is happening to private dealers now?" The testimony of Dr. Willard L. Thorp of Dun and Bradstreet, before the Monopoly Investigation Committee in Washington, presented the facts in the form of a chart showing that from 1900 to 1938 an average of over 20% of businesses discontinue operations every year. Herman Oliphant, general counsel of the Treasury, who is a member of the Monopoly Committee, commented, "The door to opportunity seems largely an opportunity to fail." There's just one thing which can save dealers from failing and that is for the farmers and workers of America to reorganize the businesses of every com munity into cooperatives. Then the present dealers can become employees and managers of the cooperatives, if they are cooperatively minded and capable, and save themselves as well as help save their communities. The present economic system only results in the end in busted dealers, tenant farmers and unemployed workers. When Kagawa of Japan was in America he answered the question with the simple statement, "When the automobile came in, the horse and buggy had to go out." Dr. J. J. Tompkins of Nova Scotia says in answer to the same question, "The people are not going to continue to starve—they are not going to wait for a few fellows who want to sell them a few shoe strings." February, 1939 19 A Lesson For Cooperatives From Capitalistic Business A trustee of the Reo Motor Car Company says there are four steps to be taken to put the company back on its feet. They apply equally to cooperatives, whether to get them going or keep them going. They are: efficient management, competent board of directors, stockholders who work together, and adequate finances. * * * Business and Banking Make and Keep Too Much Profit Leonard P. Ayres, vice-president of the Cleveland Trust Company says, "If the prospects for profits could be restored to about their old proportions we could produce a national income of 80 billions." Ayres is one of the statisticians of big- business-banking. Yet his reasoning is entirely unsound. It was the excess profits of 15 billions in 1929, when we produced a national income of over 80 billions, which the Brookings Institution report proves was the cause of reducing production. Increased profits cannot restore production—they will prevent it. Only widely distributed purchasing power can increase production. Cooperatives are one of the effective means of distributing purchasing power by the distribution of savings (profits) to every purchaser in the form of patronage returns and interest on shares. * * * Is This the "American Dream" in an Economic System? Is an economic system which will produce these results either ethical or efficient ? The items are from recent newspaper stories. Brenda Frazier whose recent "coming-out" party cost the people of America $25,000, is allowed by the court $52,000 a year, or $1,000 a week, for maintenance and support. The Southern Pecan Shelling Company has petitioned the Wage- Hour Administration for permission to pay learners 15c. per hour rather than the minimum of 25c. - The United States Chamber of Commerce has concluded that "the government must continue to subsidize farmers." The Securities and Exchange Commission reports that "insiders" sold their shares in McKesson & Robbins "shortly prior to the sus pension of trading on December 6 by the New York Stock Ex change" before the Coster-Musica fraud was uncovered. One of the insiders who sold his stock was later elected president to succeed Coster-Musica. The Railway Business Association advocates a federal railroad sub sidy of between one and two billion dollars. "The association repre sents the views of companies manufacturing and selling railway equipment." Export sales of American goods in 1938 exceeded imports by over a billion dollars, the U. S. Department of Commerce reports. Euro pean countries still owe us billions of war debts and defaulted bonds. Price, Waterhouse & Co., who "overlooked" millions of fictitious crude drug assets in auditing McKesson & Robbins, were paid over $1,000,000 in fees. $102,015 was spent to see the Louis-Lewis prize fight which was described as the "prime butchery of the pugilistic age" and "one of those magnificent spectacles of brutality that only the prize ring shows." Draw your own conclusions. Does this kind of economics really represent the "American Way" we want? 20 Consumers' Cooperation THE AUSTRIAN CENTRAL COOPERATIVE BANK (EDITOR'S NOTE: The Consumers' Cooperative Movement in the United States is now dis cussing the possibilities of a greater develop ment of cooperative finance. Otto Grossman, former general manager of the Austrian Central Cooperative Bank, who was forced to flee from Austria following the dissolution of the bank when Fascist dictator ship came into power, is now in the United States. We are indeed fortunate to have from Mr. Grossman this special article telling the history of cooperative banking in Austria from its organization to its forced dissolution by the political dictatorship which so ruthlessly crushed the cooperatives. The success and ser vice of the bank to the cooperative movement and other organizations in Austria indicate most clearly the advantages to be gained by the further development of cooperative banking in the United States.) THE AUSTRIAN Consumer Cooperative Movement was already in an upward trend before the World War. The coop eratives were united in a Central League, the president of which was Dr. Karl Renner, formerly the first chancellor of Austria. In every one of the smallest towns of Austria, there were consumer cooperatives. The largest one was in the capital, Vienna, with a great network of branches all over the city. The supplies for these cooperatives came through the Wholesale Cooperative Society, of which Dr. Karl Renner was also the president. The cooperative move ment included a great many credit unions in Austria. A great number of building societies also belonged to the league of cooperatives. Withdrawal of Private Bank Loans Forces Action As the turnover increased by a large amount during and immediately after the World War, the local cooperatives and especially the wholesale, were compelled to borrow from private banks, which February, 1939 Otto Grossman they were able to do at that time. Later on, the banks suddenly withdrew their credits and asked the cooperatives for quick re-payment of their loans. In this way, the consumer cooperatives and their Wholesale Cooperative Society came into an extremely precarious situation, which they could overcome only with the great est efforts. At that time the leaders of the cooperative movement in Austria, especially Dr. Renner, perceived fully for the first time chat the most important task of the cooperative movement was to be come completely independent of private banks. Dr. Renner proposed to mobilize the enormous financial power of the en tire cooperative movement, through the foundation of its own independent co operative bank. Central Cooperative Bank Organized In 1922, the central cooperative bank was established, named "Arbeiter Bank, Vienna." The shares were held only by organizations. According to the statutes of the bank it was prohibited to sell the shares to private persons. Fifty per cent of the shares were held by the coopera tives and 50 per cent by the Trade Unions, which were in close connection with the cooperatives in Austria. Representatives of consumer cooperatives, the whole sale cooperative society, credit unions, the Central League and trade unions were elected to the board. Through this meth od it was guaranteed that the bank would operate only in the interests of the or ganizations which were the founders. Dr Karl Renner became the president of the bank as well as the Wholesale Coopéra tive Society. Surprisingly Favorable Development From the beginning, the development of the bank was surprisingly favorable, even 21 surpassing all the expectations of those connected with its foundation. A few figures will indicate its rapid develop ment. When founded, the bank had a share capital of only about $2,000 and the de posits amounted to only about $100,000. During the first twelve years the share capital of the bank rose to about $800,- 000 and the reserves to nearly $1,200,- 000. The deposits rose to about $14,- 000,000. Every year the bank paid divi dends averaging between 12 and 22% to the share holders, which means the organizations. The cooperatives had the leading positions on the board and had control. Cooperative Movement Became Financially Independent of Private Banks The success of the bank as shown by the above mentioned figures rendered the Austrian cooperative movement inde pendent of private banks. The coopera tive bank repaid all the loans which the consumer cooperatives had made from the private banks before the foundation of the Cooperative Bank. It accumulated the surplus funds of the credit unions, insofar as they were not utilized within the activities of the credit unions; paid jinterest to the credit unions and kept their funds liquid. The bank granted credits to the different cooperatives ac cording to banking principles, after in vestigating the justification of the credits and the possibility of re-payment. They stipulated fixed terms for the re-payment. Cooperative Savings Mobilized In Austria, the consumer cooperatives were allowed by law to accept savings of their members in the different stores. All the savings deposits in the whole country amounted to nearly $8,000,000. It often happened that some of the retail coop eratives received so many savings depos its that a great part of them could not be used within the cooperatives them selves. On the other hand, it was some- 22 times necessary in other places to bor row, as the funds of the cooperative were not sufficient. Through the foundation of a coopera tive bank, the surplus funds were gath ered together and after a thorough in vestigation credit was granted to those cooperatives which were in need of it. Furthermore, through the existence of the bank, there was a guarantee given to the credit unions as well as to the con sumer cooperatives that the savings de posits were liquid. As the central cooperative bank always had an abundance of available funds, it could be of assistance if for some reason great withdrawals were made from sav ings deposits in a consumer cooperative or a credit union. Cooperative Bank Weathers Crisis When Private Banks Collapse The importance of a central coopera tive bank for the whole movement was emphasized in 1931, when the greatest bank of Austria, "Oesterreichische Credit- Anstalt fuer Handel Und Gewerbe" col lapsed and the government had to aid with full guarantee in order to prevent the loss of all the savings deposits of this bank which amounted to more than $400,- 000,000. This bank crash brought about a run of the depositors on the savings deposits in all private and savings banks. Many of these institutions could not stand this run and became insolvent. The cen tral cooperative bank "Arbeiter Bank" through its abundance of liquid capital, was not only able to satisfy fully the de mands but, moreover, during these criti cal days, placed at the disposal of all credit unions and the consumer coopera tives the necessary funds to meet any claims of the depositors of these institu tions. Through this prompt payment the confidence of the depositors was restored at once, and most of them brought their money back within the next few days. This was proved by the fact that even in that year the deposits of the bank con siderably increased. Moreover, there was Consumers' Cooperation a very interesting symptom: after the breakdown of the great banking institu tions individual depositors became dis trustful of all private banks and brought their savings deposits to the Arbeiter Bank. Though these depositors were not members of cooperatives, it accepted their money, and in this way, without any ad vertising, the Cooperative Bank received about $1,800,000 additional deposits. To gain the right idea from these figures, it is necessary to mention that the total pop ulation of Austria was only six million people. In time, these depositors became members of their own accord. Bank Takes Over Installment Credits Another task of the bank was the sep aration of installment purchasing from that of cash purchasing in the consumer cooperatives. At that time, it was the custom of the different retail cooperatives to sell merchandise to their members on installment. This mixture of transactions of cash purchases and installment within the cooperatives had disadvantageous consequences. Therefore, the Arbeiter Bank estab lished a special department which was provided with sufficient funds and had the task, after thorough investigation, to grant credits to those of their members who wanted to buy on credit. This spe cial department made loans which enabled members to buy the merchandise desired in the consumer cooperatives on a cash basis. Thus, in the different cooperatives there were only cash purchasers. The grant ing of the credits and their collecting was done only by this special department. Its establishment proved especially valu able and saved the cooperatives from the losses which they had previously sustained from installment business. Assists in Cooperative Production The bank was also of assistance to the Austrian cooperative movement in estab lishing its own production. The coopera tives had such large turnovers in some articles that there was sufficient volume for their own factory. Therefore, after February, 1939 a careful investigation, the Wholesale Cooperative Society established its own factories for these articles. The bank put at its disposal the necessary credits guar anteed by securities and on the basis of fixed terms for the repayment. In all cases these were successful, and the ad ditional profit from production benefited the movement. Many cooperative depart ment stores were established with the help of the bank; among them was one of the greatest stores, the Stafa Depart ment Store in Vienna, which chiefly served the cooperative members employed by the state and by the government. Forced by Dictatorship to Liquidate— Paid Out 100 Per Cent Just in the prime of its development, the bank was forced to liquidate by the coming of the authoritative government. The liquidation was carried through by government officials. This further proved the sound manner in which the bank had been managed—that it had always avoided any speculative transactions and had always granted credits in a careful way. In spite of the completely unjusti fied and violent liquidation, the bank was able to satisfy the claims of all its depositors 100%, within the period of one year. Thus a prosperous and most promising cooperative institution became the victim of the political developments in Austria. A WAY OF PEACE Dr. James P. Warbasse, president of The Cooperative League, has completed a new book, "Cooperation—A Way of Peace," which will be published by Harper and Brothers March 2. The con sumers' cooperative movement, with its hundred million members in 39 coun tries, is building enduring peace. The Cooperative League has arranged for the publication of a special edition of "Cooperation—A Way of Peace" in regular cloth cover for distribution thru cooperative organizations for 50c. per copy. 23 WHY POVERTY—HOW PLENTY? (EDITOR'S NOTE: The following article and illustrations are reprinted -from the November 1938 MONTHLY SURVEY OF BUSINESS of the American Federation of Labor with the ap proval of William Green, President. We re quested permission to reprint this for the reason that it seems to us that it is a clear statistical presentation of our economic diseases of idle factories, idle men and idle money which are producing poverty, and offers suggestions in democratic organization to achie-ve plenty.) AMERICAN industry is today coming to /\ grips with a problem which has never been squarely faced. The new indus trial revolution which took place with the coming of electric power and highly pro ductive machines has, without our realiz ing it, shaken the very foundations of our economic order. Industry has never ad justed fundamental work relationships to the power age. Our present ways of doing business are the heritage of the last century, when American business men were making their incomes—often large fortunes—by taking over the vast natural resources of a new continent. Farms, mines, oil wells, timberlands, acquired at low cost or no cost, produced richly. Newly built rail roads and industrial plants found a ready market, for they sold, not to wage earners, but to those who had made wealth from the abundance of free resources. Business men received, and grew to expect, high rewards for their activity. Wages were paid on the basis of what one man could produce with his physical energy and skills. High powered machinery played little part in the economic picture until the end of the century, mass production industries were virtually unknown. With the new century has come a new era. Free land is gone; fortunes can no longer be made by taking over natural resources. Nor can industries find a mar ket among the wealthy alone. For the power age has transformed American 24 industry, and mass production dominates our markets. Mass production can live only by mass markets. Yesterday's order is gone forever. Tomorrow's growth must come from mass consuming power. The captains of industry created mass production, but they could not build up a mass market able to absorb the pro duction of high powered industry plants. Therefore our plant has never been used to capacity, and we have the spectacle of millions on starvation incomes in the midst of a possible plenty.1 The charts herewith show the failure of American society to act so that our machinery, man power and credit resources might be used to produce the high living standard possible for every American family. Idle Factories The chart shows that even in 1929, our year of highest production, we fell far short of the living standard our in dustries were equipped to produce for each family.2 Consumers' goods repre sented in the chart include not only food, but clothing, homes, automobiles, ser vices such as telephone calls, medical care, and every other family need. The ten baskets, representing what we actually produced for each family in 1929, could have been increased to 13.7 if our in dustries had operated at capacity, and distributed their product so that all shared justly in the national income. This would have increased the average family wage by 37 per cent. In 1933, when produc tion per family had dropped to only 73 per cent of 1929, capacity production could have doubled family income. By 1. See Monthly Survey of Business for October 1938. 2. The figures are based on Nat'1 Survey of Potential Product Capacity, by Harold Xoeb and associates, brought up to date by allowing for increases in productivity and labor force. 1937 production had increased again to 92 per cent of the 1929 volume; but had our industries operated at capacity, the average family could have enjoyed a liv ing standard of 54 per cent above 1929 and 67 per cent above 1937. Idle Money Also, we are letting our credit resources lie idle. Although excess reserves of Fed eral Reserve member banks form a base for credit which permits more lending than in 1929, borrowings by business for PRODUCTION OF CONSUMERS' GOODS PER FAMILY ACTUAL PRODUCTION 1929 1933 ft: A; n ADDITIONAL PRODUCTION A/ POSSIBLE Each basket represents 10% of actual production in 1929 PICTORIAL STATISTICS, INC Idle Men These rough estimates are no idle dream. They are based on careful and exhaustive studies made by competent en gineers. They sketch what is approxi mately possible in our present age of power. But today, a large part of our plant stands idle; American workers are denied the chance to work and produce in private industry. We are wasting man power as well as machines and keeping the living standard at starvation levels. The chart on this page shows that nearly 2,000,000 were unemployed in 1929 ;3 13,000,000 in 1933; and in 1937, al though industrial activity approached 1929 levels, 8,300,000 were still without work, except for the 2,400,000 employed on WPA. 3. American Federation of Labor unemployment esti mate. working capital have shrunk from $11,- 500,000,000 in 1929 to $7,100,000,000 in 1937.4 Banks seem afraid to lend, busi ness to borrow, Government instead is using funds for WPA housing, loans to farmers, and other measures which put money to work creating jobs and stimu lating business. Money invested by banks in government securities increased from $3,860,000,000 in 1929 to $12,370,000,- 000 in 1937. Government Regulation A Part of Forward Program These credit figures illustrate the in creasing part that Government is play ing today in American business activities. Government control is here to stay, and 4. Amounts outstanding at the end of the year at Federal Reserve member banks. The item used to show business borrowing is: Loans to customers (except banks) "otherwise secured and " unse cured." UNEMPLOYMENT 1929 1933 1937 »mmm Each man represents 500,000 unemployed •mm»» i HCTOfitAl STATISTICS INC Consumers' Cooperation February, 1939 25 BANK CREDIT HUB GOVERNMENT BORROWING BUSINESS BORROWING Each symbol represents 2 billion dollars naocui STATISTICS. INC business men who hold back production to wait for the freedom of predepression days are rebelling against the inevitable. Freedom of that kind is gone forever. Power production makes regulation es sential. For it requires huge concentra tion of capital, and has enabled powerful groups to set up controls which fix prices so that a free market no longer exists. Thus economic laws cannot operate to prevent undue price increases and exorbi tant living costs. Control is inevitable; the question is: Shall it be control by Government in the interest of all, or by powerful groups for their own interest? Under the New Deal many important controls have already been set up, mark ing advances in our adjustment to the power age. Thievery on the stock market is being checked; control by anti-union employers over Labor's right to organize has been lessened; we have begun to provide security against seasonal unem ployment and old age ; other controls also are protecting the interest of working men and women. These measures are steps forward, but these alone are not enough to lift pro duction to maximum levels. In 1935-6, we fell short of maximum production by 40 per cent, and nine-tenths of our popu lation lived on incomes of less than $3,000 a year.5 Maximum production rightly distributed6 means an income of over $4,000 for every family, with higher 5, See Monthly Survey of Business, October 1938. The income figures are from National Resources Committee, U. S. Department of the Interior. 26 incomes for those in more responsible positions. Power Production Wages By Collective Bargaining Our American economy can achieve a $4,000 income for every family, but there is no get-rich-quick way of doing this. Nor is there any one panacea that will accomplish it. There are a number of steps which will bring us nearer the goal. We have already embarked on the first step: Trade union organization through out industry and a steady and rapid in crease in wages. We need to follow this by a new conception of wages: Wages based on producing power with machines. The old conception of wages, based on human skills and energy alone, is totally inadequate. Workers today are not re ceiving the wages justified by their power to produce. Productivity wages can be established through collective bargaining by (1) raising wages according to in creases in productivity in an industry and by (2) some form of partnership wage which shares excess income equitably be tween management, workers and iiv vestors. Lower Prices, Higher Quality By Consumers Cooperatives Secondly, we need to think of our selves as consumers. The consumer is 6. Proper distribution does not mean reducing all to a dead level. Estimated income of $4,000 per year from National Survey of Potential Product Capacity. the key man of the power age. His buying power is the gold mine out of which resources for industrial growth must come. Eight out of every ten consumers derive their buying power from wages or small salaries. Therefore the trade union has a responsibility as spokesman for more than three-quarters of all con sumers. As consumers, however, our con cern is not only for income, but also for the lowest possible price and the best possible quality in the goods we buy. Consumers' cooperatives are already per forming an essential function in controll ing quality and price for farmers and union members. Their growth is a second measure for increasing buying power. Democratic Plan of Action Needed Neither of these two measures alone, however, can in the near future break the jam which prevents the free flow of production and consumption. It has been suggested that a thoroughgoing study of the nation's consuming needs, followed by a program under democratic methods to get the necessary goods produced, would give private business an oppor tunity to raise production rapidly with assurance of reasonable profit. Such a program, developed by a commission composed of representatives of owners, management and labor concerned in pro duction and distribution, consumers and government representatives, and served by technicians, would conserve the inter ests of all groups and thus make possible sustained mass production with higher standards of living for all. No large industrial concern would ap proach a year's work without a plan of action: yet our effort as a nation to pro duce for our people is haphazard and subject to the whims of millions. The power age has driven European countries to programs for production, and they have adopted fascism or communism. We need to establish a plan of action under democracy before unending depression drives us to unAmerican methods.7 7. For a clear and far-sighted discussion of many of these points you are referred to an address by Dr. Harlow S. Person before trie bureau of Per sonnel Administration, New York City, Octo ber 13, 1938. NEED AND METHOD OF TEACHING CONSUMERS' COOPERATION IN SECONDARY SCHOOLS Carlton John Siegler (EDITOR'S NOTE: The author has written from his experience as a teacher of marketing in the public schools some very practical suggestions for teaching consumers' cooperation. For teachers it offers a pattern which might well be adapted for use in marketing, econom ics, history, current problems or other courses. For cooperators it should serve as an inspira tion to see to it that the subject is included in the courses of all public and private schools as well as in adult education.) IN A RECENT survey of consumer educa tion courses given in the secondary schools of the United States it was ap parent that consumer educators are apt to emphasize the study of consumers' goods and neglect the study of consumers' cooperatives.* While it is important for the consumer to know how to purchase Consumers' Cooperation February, 1939 wisely it is equally important to know u'here to go to buy goods and services. To be a more intelligent consumer the subject of Marketing should be correlated with the study of consumer goods since the average consumer knows very little about the marketing channel through which her or his goods must travel be fore they are purchased in a retail store. Therefore the educators have a splendid opportunity to teach the importance of cooperatives in America to consumers. It is with this thought in mind that the following suggestions are made. Such a course as outlined is at the present time *A study of seventy-one representative consumer education courses writ'ten by Henry Harap for The School Re-view, October, 1938. 27 being taught successfully in a secondary school in the City of New York. Students in these courses, as well as some of their parents have become members of coop eratives because of their extreme interest. Such a course in Marketing may be di vided into three separate units to enable the student to better understand the vari ous phases of retail marketing and mer chandising. The First Unit of such a course may consist of a study of "The Marketing Functions" ; the Second Unit, "Middlemen and Certain Types of Retail Organizations" ; and the Third Unit, "Consumers' Cooperatives." These three units are suggested in order to conform to the three marking periods which are common in most secondary schools dur ing a one semester course. Reporting on Cooperatives On the first day of the marking period every student should be given a mimeo graphed sheet with instructions for reports to be made during the marking period. Then every day, at the beginning of the class recitation, a different student reads his report to the other members of the class until all students have recited. As an example, during the third marking period when Consumers' Cooperatives are studied, each student will visit a coopera tive and report on his visit to the other members of the class, and class discussion should follow. After being graded, these particular reports are sent to the manager of the consumers cooperative which the student visited with the aim of aiding the consumers in this particular store. COOPERATIVES ON THE MARCH SAMPLE INSTRUCTION SHEET Each student in the Marketing class will visit ONE Consumers Cooperative and then make an oral report of his re search. Apply the knowledge you have acquired this semester in your Marketing class as well as from previous courses and answer the following questions in your written report— 1. Give the name, location and the date of the visit to the consumers cooperative. 2. What is the purpose of the consumers cooperative that you visited? 3. What are some of the reasons for the organization of this cooperative? 4. How is the merchandise priced and dis played in the consumers' cooperative? What suggestions can you make for im proving the display? 5. Do you feel that this cooperative is in the proper location for consumers? 6. Has the cooperative proper lighting and equipment to aid consumers in purchas ing their goods? What suggestions have you to offer? 7. What methods of advertising would you employ in order to secure additional con sumers for this cooperative? Why? 8. What methods of advertising are now being used by the consumers cooperative? 9. First impressions are usually lasting im pressions. What would you suggest as a model window display for this coopera tive? 10. In your opinion what will be the future of this particular cooperative? Discuss. 28 Your report should answer the above questions in essay form and be a mini mum of 200 words. All reports must be read by the student on the day assigned. Any one of the following consumers cooperatives may be visited. (Teacher should list local Consumers' Cooperatives) Visit one consumer cooperative organ ization during the third marking period with a bona fide consumer, such as your mother or your j other. Give the name, location and date of the visit to the co operative. Interview the consumer regard ing the quality and the price of the mer chandise or service being sold. What was his reaction? Explain the purpose and aim of consumers cooperatives to the consumer. Explain that each shareholder in a cooperative has one vote, regardless of the amount of stock he owns and that patronage returns are paid on purchases. One out of every eight people in the population of the world is served by a cooperative society. There are 139,000,- 000 consumers who are members of co operatives in 43 countries. Would the con sumer you are interviewing be interested in becoming a member of a cooperative. Why? What in their opinion is the fu ture of the cooperative that was visited? New York—Seventy-five new coopera tive stores have opened in the area served by the Eastern Cooperative Wholesale during the last two years. The need for well trained managers has become so pressing that Eastern Cooperative Whole sale is acting as co-sponsor of a course in management training given by Roch dale Institute. Columbus, Ohio — The Cooperative Life Insurance Company of America showed an increase of 34.9 per cent in new policies during 1938. Policies total ing $8,725,000 were written in the states of Ohio, Pennsylvania, West Virginia, North Carolina, Maryland, Delaware and Vermont which are served by the co-op. In sharp contrast to cooperative pro gress, life insurance production for all companies in the U. S. was approximately $11,800,000,000, a decrease of 20 per cent from the total of the previous year. Total insurance in force in the co-op at the close of the year was $24,457,000. Surplus paid out to policy holders was $486,487. Total admitted assets were $2,705,000. • Chicago—After months of investiga tion, the grocery committee of National Cooperatives, Inc., has approved adoption of a uniform label on all CO-OP canned goods. It also approved the use of gov ernment grade labeling on commodities where it is available, and discussed a pro gram of joint purchasing which will make possible further economies in grocery dis tribution. Cooperative Design Service will com plete final drawings for the design and the new label will appear as soon as pres ent stocks are exhausted. The five regional cooperative associa tions represented at the meeting January 21-23 were: Cooperative Wholesale, Su perior, Wise.; Midland Cooperative Wholesale, Minneapolis; Eastern Coop erative Wholesale, Brooklyn, N. Y. ; Con- Consumers' Cooperation February, 1939 sumers Cooperative Association, N. Kan sas City; and the Cooperative Wholesale, Chicago. Minneapolis—While private profit oil distribution in Minnesota and Wisconsin remained static in 1938, Midland Coop erative Wholesale handled 6,400 rail road tank cars (about 50,000,000 gal lons) of petroleum products, an increase of 449 cars or 7.5 per cent over its 1937 record volume. Pre-audit figures showed Midland's dollar volume as $3,650,000, or about 1.5 per cent below the dollar volume for 1937, but prices declined from 10 to 15 per cent during the year. Nine new retail cooperatives joined Midland last year, bringing the member ship up to one hundred and eighty affiliated cooperatives. During the year member co-ops completed a building program of more than a quarter of a million dollars. Superior, Wisconsin — Central Coop erative Wholesale reported total sales of $3,045,512 during 1938, a decrease of about 5% per cent under its 1937 record volume. The decrease in dollar volume was largely due to a fall in price levels. The amount of goods handled will prob ably show a very slight decline, if any. Total U. S. retail sales dropped 11.6 per cent in 1938. The food group was off 5 per cent while general stores comparable to many of the CCW co-ops showed sales off 10.5 per cent. North Kansas City — Equity Co-op- Creameries in North Dakota, South Da kota and Iowa have made arrangements with Consumers Cooperative Association to handle co-op groceries. Grocery de partments are expected to serve as the basis for consumer cooperative organiza tion. The Equity creameries operate a fleet of trucks to handle milk and will use them to deliver groceries to the retail units from the cooperative grocery whole sale. 29 Madison, Wise.—Governor Julius P. Heil issued a proclamation designating the week of February 20-24 as "Coopera tive Week" to be observed throughout Wisconsin. Following the tradition set by Gov ernor LaFollette'last year, Governor Heil declared : "NOW, THEREFORE I, Julius P. Heil, Governor of the State of Wisconsin, do hereby desig nate the week of February 20- 24 inclusive as WISCONSIN COOPERATIVE WEEK and urge all the citizens of the state to avail themselves of the opportunities provided during these five days by special radio programs, newspaper articles, and otherwise, to learn more of the spirit and principle as well as the aims and accomplish ments of cooperation." Racine, Wisconsin — The second re gional conference on "Organized Labor and Consumer Cooperation" will be held in Racine, February 24, 25 and 26. Dele gates are expected from cooperatives and labor unions in Minnesota, Wisconsin and Illinois. Among the featured speakers at the conference will be Henry Ohl, Jr., presi dent of the Wisconsin Federation of La bor (AFL) ; Jacob Baker, president of the United Federal Workers (CIO) ; E. R. Bowen, general secretary of The Co operative League of the USA; Joseph Gilbert, Midland Cooperative Wholesale; Herbert Katt, manager of the Racine Con sumers Cooperative; and James Myers, industrial secretary of the Federal Coun cil of Churches. The Racine co-op, which will be visited by the conference delegates, has just com pleted its fourth year and reported a vol ume of $217,000 through its six gas and oil stations, grocery store, butcher shop, coal yard, appliance shop and credit union. New York — Thirty-two thousand members of Congregational and Christian Churches who took part in an Economic 30 Plebiscite just completed by the Congre gational Council for Social Action voted three to one in favor of encouraging the growth of consumer cooperatives. Ballots were received from over 700 churches representing all sections of the country. North Kansas City — Seventy-three students completed a special winter school of cooperation held here under the auspices of the Consumers Coopera tive Association, January 8-15 and 15-22. V. S. Alanne of the education department of Central Cooperative Wholesale was chief instructor. Antigonish, Nova Scotia—The exten sion division of St. Francis Xavier Uni versity has just compiled statistics on co operatives in the Maritime provinces showing: 253 credit unions; 45 coopera tive stores; 36 co-op lobster processing plants; and 12 cooperative smelt market ing associations in Nova Scotia, New Brunswick and Prince Edward Island; a cooperative wholesale in Moncton, N.B., and a branch at Sydney, N.S. Since it was opened three months ago, the branch co-op wholesale in Sydney has been serving 25 cooperatives and has a volume of $13,000 per month. Fresno, Calif.—Managers, buyers and educational directors of cooperative wholesales, retail and educational associa tions in northern and southern California met here January 21 and 22 for the first statewide conference of consumer coop eratives and laid plans to strengthen and coordinate their cooperative activities. The major organizations represented were the Cooperative Education Associa tion and Associated Cooperatives which serve 17 cooperative stores and a num ber of study and buying clubs in south ern California, and the Northern Cali fornia Cooperative Council and Cali fornia Cooperative Wholesale, made up of a dozen cooperative stores, three coop erative gas and oil stations and coopera tive buying and study clubs in the northern section of the state. New York—Music lovers wherever they are or whatever their tastes may be can now buy their records through coopera tives. A group of record enthusiasts are com pleting plans for a nation-wide mail or der cooperative service which will buy and ship records for its members. The new co-op is being organized under the auspices of the Cooperative Book Club, 118 E. 28th Street, New York City. Quebec, P. Q., Canada — Laval Uni versity has established a Chair of Coop eration in its new School of Social, Political and Economic Sciences. Official announcement of this new educational departure declared, "Laval University, ever eager to adapt its lessons to the needs of the day, has decided to accord special attention to Cooperation. . . . This new chair will have as its purpose the spreading, not only among our intellec tual elect, but also among the masses of the people, the idea of the common effort basis of the Cooperative Movement." New York—Rochdale Institute, na tional training school in Consumer Co operation, opened its spring term here February 6 with 27 students enrolled for regular courses in cooperative business and education and a special training course in cooperative grocery store man agement. The students are from 9 states, Canada, Philippine Islands and China. One-third of the students at this fourth term of the Institute were sent by coop erative societies to get special training. The grocery management course is being given under the joint sponsorship of the Institute and Eastern Cooperative Whole sale. Indianapolis—Herbert W. Smoots, supervisor of operations of the Ohio Farm Bureau Cooperatives, was selected as man ager of United Cooperatives, Inc. at the meeting of the board of directors of the regional cooperative purchasing federa tion January 9. He succeeds the late V. L. Everson. L. J. Bennett will take over Mr. Smoot's duties with the Ohio Farm Bureau Cooperatives. Superior, Wisconsin — The members of the central committee of the Northern States Women's Cooperative Guild have issued an invitation to all women's coop erative guilds, other organizations of women in the cooperative movement and interested individuals to join in the for mation of a National Cooperative Women's Guild. Mrs. Maiju Nurmi, Route 1, Box 66, Wentworth, Wisconsin, temporary secre tary of the National Committee, invites correspondence with individuals and or ganizations in other cooperatives. The first national bulletin will be published some time next month. New York— Ninety-four writers, re search workers and translators working on the WPA "Cooperative Project" spon sored by professors at Columbia Univer sity, New York University and the Col lege of the City of New York, have al ready completed an "Index of Coopera tive Laws," and have listed more than 24,000 titles of books, pamphlets, articles and other published material in prepar ing a complete bibliography on the co operative movement. They are also com piling material for an "Encyclopedia of the Cooperative Movement," which will consist of from 500 to 600 articles in short and condensed form dealing with all the important aspects of the coopera tive movement. Help Czech Cooperators LONDON—The International Coopera tive Alliance has issued its second appeal for funds to assist refugees from the Sudetenland who were persecuted or driven out of the territory when the Nazis came to power. Of the 227 Sudeten German Coopera tive Societies operating in that section of Czechoslovakia before Munich, only three remain and those are outside of the territory taken over. The German- Sudeten co-ops had a membership of 231,000 and an annual business of al most $20,000,000. Contributions to aid the refugees should be sent to The Cooperative League of the USA, 167 West 12th Street, New York. Consumers' Cooperation February, 1939 31 New York City — Sidney Hillman, president of the Amalgamated Clothing Workers of America, was re-elected for a three-year term as a director of the Amalgamated Cooperative Apartments at the annual meeting of the members. Other directors elected were: William T. Spahn, S. Lipshitz and Israel Ostroff. The housing cooperative saved its 600 family members more than $10,000 during the past year. Chicago — The Cooperative Union, federation of consumer co-ops in "Chi cagoland," is considering a 60-house co operative housing project in Hinsdale, a suburb of Chicago. The total cost of the project would be in the neighborhood of $400,000. BOOK REVIEW BRIGHTON'S COOPERATIVE ADVANCE—By W. Henry Brown. The Cooperative Union, Man chester, England, 1938. This little book tells the story of the Brighton Society, England, started in 1828. The active person in the development of co operative education in Brighton and finally in starting the society was William Bryan. The following year Bryan migrated to New York City and resided at 364 Hudson Street. He organized a cooperative society in New York, the first recorded, in 1830. This is the kind of information that is discovered in this fascinat ing book. The first Brighton Society failed as was the case with so many of the early British societies. Then came Dr. William King, physician of Brighton. He was the first man to reveal an understanding of cooperation. He was the first person to see how the machine might be owned by the cooperative society, and instead of driv ing people out of employment, it would shorten the hours of labor and prove a blessing. It was here that Lady Byron, the widow of Lord Byron the poet, Lord of the manor of Rochdale, gave the last thirty years of her life to the cause of cooperation. The Rochdale Pioneers got their best ideas from Brighton. The story of the Brighton society is good reading. It is a real drama on the economic stage. After its ups and downs, this society now has 50,000 members, and serves much of the countryside of Sussex. Mr. Brown has done a fine service to cooperation in this his torical narrative. —J. P. WARBASSE 32 INDEX The INDEX of CONSUMERS COOPERATION for 1938 is now available and may be secured from The Cooperative League, free of charge. BOUND COPIES Bound volumes of CONSUMERS COOPERA TION for 1938 are also available. These are $2 a volume and are a valuable addition to your library. Plays The Spider Web, a S act play, by Ellis Cowling .......j.....:.................................................. .25 The Answer, a 3 act play, by Ellis Cowling .20 Two One Act Plays, Ellis Cowling .............. .15 Poslers Organize Cooperatives, 2G"x3S" Green, 5 for $1 .................................................... .2(1 Cooperative Principles, 19"x2S" Blue, 5 for $1 ...................................................... .20 Cooperative Ownership, 19"x28" Mulberry, 5 for $t ............................................ .20 Films "The Lord Helps Those — Who Help Each Other," a new 3 reel, 16 mm. film of the Nova Scotia adult education and cooperative pro gram, produced by the Harmon Foundation. Excellent photography. $4.50 per day, $2.25 additional showings, $13.50 per week. ••Clasping Hands," 36 mm. silent, two reel film, showing how cooperation is taught in the schools of France. Won the Grand Prize at the International Exposition, Paris, 1937. "When Mankind is willing," a 16 mm. silent three-reel film, with English titles, of coop erative stores, wholesales and factories iu France. "A Trip to Cooperative Nova Scotia," 3 reels, 16 mm. silent with titles, based on the 1U37 Co-op tour. Rental : $3 per day, $1.50 for each additional showing or $10 per week. Fire Insurance ON YOUR FURNITURE SAFE - ECONOMICAL - COOPERATIVE Workmen's Mutual 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. À Put Reserves Before Dividends The Religious Attitude and the Consumer Economy Dr. Horace M. Kallen Labor Conditions of Cooperative vs. Private Employees in Sweden H. Hjalmarsson Movies For Co-op Education Wallace J. Campbell Organized Labor and Cooperative Leaders Meet at Racine March 1939 Consumers' Cooperation NATIONAL MAGA7INE FOR COOPERATIVE LEADERS Do All the Directors and Officers of Your Cooperative Read Consumers' Cooperation? Consumers' Cooperation is written for the leaders of America's cooperatives. Not just for presidents and managers of regional federa tions, not just for educational directors, but for all who assume positions of leadership in retail cooperatives and federations. Your directors, as the representatives of Mr. and Mrs. Average Consumer, shape the policy and practices of the consumers co operative movement. As cooperative leaders it is their right and their responsibility to be up to date on the latest developments in the movement—to have the best information available on "cash vs. credit policy," "building reserves for coopera tive stability," "membership education to make cooperation pay," "cooperative banking," and a host of other important questions your co-op director must decide. You will find it a good investment to see that all of your directors subscribe. Send subscriptions to: THE COOPERATIVE LEAGUE. 167 West 12th Street, New York City. CALENDAR OF COMING EVENTS Central Cooperative Wholesale, Annual Meeting, Superior, Wisconsin, April 15, 16. Central States Cooperative League and The Cooperative Wholesale, Inc., An nual Meeting, Chicago, April 22-24. World's Fair Cooperative Center, New York, Grand Opening, May 27. tastern Cooperative Wholesale, Annual Meeting, Brooklyn, N. Y., May 30. Cooperative League Publicity and Educa tion Conference, Milltown, Wisconsin, June 22, 23 and 24. National Cooperative Recreation School, Milltown, Wisconsin, June 25 to July 8. Trip to Cooperative Europe, sails from New York in the Motorship Batory, July 1. Returns to New York Sept. 3. Tour of Nova Scotia Cooperatives, begins Antigonish, Nova Scotia, August 21, closing September 2. THE COOPERATIVE LEAGUE 167 West 12th Street, New York City 608 South Dearborn, Chicago DIVISIONS: Auditing Bureau, 167 West 12 St., N. Y. C. Medical Bureau, 5 E. 57 St., N. Y. C. Design Service, 167 West 12 St., N. Y. C. Rochdale Institute, 167 West 12 St., N. Y. C. Clusa Insurance Service, 1Î5 Kent Ave., Brooklyn, N. Y. AFFILIATED REGIONAL COOPERATIVES Name Central Cooperative Wholesale Consumers' Cooperatives Associated Consumers Cooperative Association Cooperative Book Club Cooperative Distributors Cooperative Recreation Service Cooperative Wholesale, Inc. Eastern Cooperative Wholesale Farm Bureau Cooperative Ass'n Farm Bureau Mutual Auto Insurance Co. Columbus, Ohio Farm Bureau Services Lansing, Michigan Farmers' Union Central Exchange Grange Cooperative Wholesale Publication Cooperative Builder The Producer-Consumer Cooperative Consumer Readers Observer- Consumers Defender The Recreation Kit Indiana Farm Bureau Coop. Association Indianapolis, Ind. Midland Cooperative Wholesale National Cooperatives, Inc. Pacific Supply Cooperative Address Superior, Wisconsin Amarillo, Texas N. Kansas City, Mo. 118E. 28 St., N. Y. 116E. 16St.,N.Y. Delaware, Ohio 2301 S. Millard, Chicago 135 Kent Ave., Bklyn E.C.L. Cooperator Ohio Farm Bureau News Ohio Farm Bureau News Michigan Farm News Farmers' Union Herald Grange Cooperative News Hoosier Farmer Midland Cooperator Columbus, Ohio St. Paul, Minn. Seattle, Washington Minneapolis, Minn. Chicago, 111. Walla Walla, Wash. Pennsylvania Farm Bureau Coop. Ass'n Harrisburg, Penn. United Cooperatives, Inc. Workmen's Mutual Fire Ins. Society Penn. Co-op Review Indianapolis, Ind. 227 E. 84th St., N. Y. DISTRICT LEAGUES Central States Cooperative League 2301 South Millard Ave., Chicago, Illinois Eastern Cooperative League 135 Kent Ave., Brooklyn, N. Y. Northern States Cooperative League Sexton Building, Minneapolis, Minnesota California Co-op Education Ass'n 1676 E. 85 Street, Los Angeles, Cal. Northern California Co-op Council 372—40th Street, Oakland, Cal. National Cooperative Women's Guild Box 1000, Superior, Wisconsin CONSUMERS' COOPERATION OFFICIAL NATIONAL JOURNAL OF THE CONSUMERS' COOPERATIVE MOVEMENT PEACE -PLENTY • DEMOCRACY Volume XXV. No. 3 MARCH, 1939 Ten Cents "Under-consumption is the euphemism for over-production," truly says the Federated Press. * * * When cooperative leaders come together today there is much evidence that "The dominant mood is a genuine desire to achieve understanding." This fact is borne out by the friendly discussions and acceptance of democratic majority rule in recent decisions made by representatives of regional cooperative associations rela tive to the joint purchase of tires, adoption of a uniform label for canned goods and by other similar actions. * * * The famous Dr. William H. Kilpatrick of Teachers College, Columbia Uni versity, expresses the cooperative purpose when he says, "We not only agree with our ancestors in rejecting external political control of the many by the few, but we also wish to abolish the economic control of the many by the few." * * * An advertisement of the Central Cooperative Wholesale of Superior, Wiscon sin, is headed "The Cooperative Movement is not a 'Friend' of Labor—it is Labor itself." Workers, whether factory, office or farm, need badly to learn that Con sumers' Cooperation is just as much their movement as their producers organiza tions, whether labor unions, professional associations or marketing cooperatives. While they should organize separately as producers to bargain collectively they must also organize jointly as consumers into cooperative associations to take over ownership and control of industry and finance. An organ to spread the knowledge of the Consumers' Cooperative Movement, whereby the people, in voluntary association, purchase and produce for their own use the things they need. Published monthly by The Cooperative League of the U. S. A., 167 West 12th St., N. Y. City. E. R. Bowen, Editor, Wallace J. Campbell, Associate Editor. Contributing Editors: Editors of Cooperative Journals and Educational Directors of Regional Cooperative Associations. Entered as Second Class Matter, December 19, 1917. at the Posf Office at New York, N Y under the Act of March 3, 1879. Price $1.00 a year. ' '' Private dealers should not buy from Co-op Societies, says a four-column head line over a story of the discussion at a meeting of a local Chamber of Trade in England. It surely is an embarrassing position for a dealer to have to be "disloyal" to his organization in order to provide his family with pure food and goods at a low price. * * * The widespread interest in the Consumers' Cooperative Movement is plainly indicated by the varied and important groups which have recently requested pre sentation of the subject by the Secretary of the Cooperative League. They have in cluded such a national educational group as the American Economic Association, the national Committee on the Church and Cooperatives of the Federal Council of Churches, a farm group at a State Farmers Week and delegates of labor unions to a Cooperative-Labor Conference. Such widespread interest is of great significance in the further development of Consumers' Cooperation. * * * One of our copy book maxims which we use to teach our children to learn to write is the expression, "Honesty is the best policy." Apparently it doesn't soak into those of us who become bankers any too well, even though we copy it over and over in school. The United States Circuit Court of Appeals has recently ruled that there was "no excuse or justification" for the RFC lending $90,000,000 to the "Dawes" bank in Chicago "without adequate security" and that statements signed by two pres idents of other large Chicago banks that the loan was fully secured were "deceptive and untrue" and that both of them knew it. This famous loan will "stink to high heaven" until we make banking a cooperative-public function for the benefit of all, rather than a private function for the profit of a few. Incidentally to whom are we to point as proof of what we teach our children when we find such examples in high places? * * * Bertram Fowler says we are becoming "a rootless people," which is another way of saying we are becoming a nation of tenants and servants. Only ownership of homes and shares in cooperative distribution, production and financial institu tions will ever sink our economic "roots" deep enough into the natural resources in the soil of America to eliminate poverty and achieve plenty for all. * * * "Consumers Cooperation is a Vision Incarnated in a Business" We are highly indebted to Dr. Horace M. Kallen for again phrasing the ideals of the Consumers' Cooperative Movement in striking sentences in the article printed in this issue of Consumers Cooperation. Ideals are handles to hold on to in the struggles of everyday life. It will help each member to constantly remember that "Consumers' Cooperation is a business illuminated by a vision, a vision in carnated in a business," as he graphically describes the Movement. It will help each employee in whatever work he or she is doing, whether wrapping groceries or filling gas tanks or typewriting, to recall that "the consumer ideal can consecrate and transform the most prosaic and material item of economic behavior into tt spiritual event." It is a personal challenge to us all to a greater self-analysis when Dr. Kallen declares that "Cooperation can grow certainly only as human beings themselves grow, moment by moment, step by step." These and other words of wisdom from one of America's greatest philosophers will be found in his complete article on later pages in this issue. The greatest danger to democracy in America is not in "external enemies," says Dr. Harry Emerson Fosdick, famous radio preacher, but in "the inequalities among our own people." Cooperators know this to be a fact and are hard at work building the only democratic remedy for our economic inequalities. * * * Five hundred uniformed honor cadets in Chicago heard Major General Stanley Ford's eulogy that the R.O.T.C. "constitutes today the hope and faith of our coun try." How much different are we in America from the dictators who raise their boys to be soldiers? Fathers of every country train their children to fight against one another. If wars are to be fought, why shouldn't the fathers be men enough to fight their own battles instead of forcing their sons to be bloody sacrifices for them ? * * * Not This Kind of "Co-op" A newspaper story of the recent National Farm Institute, sponsored by the Des Moines, Iowa, Chamber of Commerce, is headed "U.S. Found Needing Coop: Labor, Farm and Factory." We solemnly warn labor and farmers to stop, look and listen or they will find themselves swallowed up more than ever by this kind of "Cooperation." The word "Factory" as used in the heading was represented in the Institute by officials of the National Association of Manufacturers and of the U.S. Chamber of Commerce. Representatives of these organizations necessarily are primarily interested in increasing "private-profits," which means raising prices to labor and farmers on what they buy and lowering the pay to labor for their services and to farmers for their products. There can be no such thing as true Cooperation until labor and farmers own the factories as consumers. Then labor and farmers as producers can really cooperate with themselves as consumer-owners. * * * Put Reserves Before Dividends! A report of the annual meeting of a European cooperative society says, "The sound policy of putting reserves before dividends has been maintained." Would that this policy had been adopted and maintained by every American cooperative! Dividends have bled many an American cooperative white. What cooperatives need is the red-blood of reserves. It's all a question of immediate vs. future results. It's a few dollars to each member in dividends for immediate negds vs. accumulating the savings of all the members in reserves toward the earlier ownership of an in creasing number of facilities. All the earnings of a cooperative are what might be called "velvet" to the members. They are what a private owner would get if the members traded with him. If the members trade with themselves they simply save what they would otherwise have to pay out. It is a question whether it would not have been better if the Rochdale Pioneers had not invented the device of patronage dividend but had started the Cooperative Movement on the policy of using all the savings which resulted from group buying as reserves or capital to invest in facilities to serve additional needs of the members and to build up an impregnable financial strength in the movement so as to be able to lower the general price level and thus distribute purchasing power more widely among all the people and eliminate pov erty, unemployment and tenancy at an earlier date. The whole problem of dividends vs. reserves is a question of immediate small benefits for each member individually in patronage returns vs. future larger benefits for all in cooperative ownership. We urge that "ownership" be stressed more than "dividends" in soliciting new mem bers and that more savings of cooperatives be voted to reserves or capital rather than to cash patronage returns. 34 Consumers' Cooperation March, 1939 35 LABOR CONDITIONS OF COOPERATIVE VS. PRIVATE EMPLOYEES IN SWEDEN H. Hjalmarsson, Labor Adviser, Kooperativst Forbundet Ar THE END of the year 1937 the num ber of persons employed in the Con sumer Cooperative Movement in Sweden was 23,904. This number can be divided into the following main groups: a. Kooperative Forbundet 1. Office workers ............... 1,037 2. Warehouse and factory workers ...... 5,306 3. Shop workers .................. 651 ———— 6,994 b. Local Cooperative Societies 1. Shop workers .................. 14,798 2. Productive workers ...... 2,112 16,910 TOTAL .................................... 23,904 Cooperative Labor Agreements Cover Nearly All Employees By far the largest part of the coopéra-, tive employees in Sweden are members of the trade unions connected with their re spective branches of work. Their wages and other conditions of employment are therefore in general determined and reg ulated by collective agreements, i.e., con tracts entered into by the employer on the one side and the trade, union on behalf of its members, on the other. With respect to Kooperativa Forbundet, the combined Cooperative Union and Wholesale Society of Sweden, all employees with the ex ception of officials are included un der the regulations of collective agree ments. The employment benefits stipu lated by the collective agreements—with the exception of wages—are, however, also applied for officials. About 95 per cent of the employees of consumer co operative societies affiliated with K.F. are members of appropriate trade unions. Those societies which have not established collective agreements with their employees are entirely small societies with very small staffs, and, furthermore, events show that 36 such societies are becoming fewer and fewer. The general managers of societies and, in the larger societies, certain depart mental managers, are in general not mem bers of trade unions. Any account, of the labor conditions of cooperative 'employees in Sweden must therefore be most nearly a survey of the contents and regulations of current col lective agreements. More Favorable Employment Conditions in K.F. If office workers are left out of account for the moment, there are no great diffi culties in making direct comparisons be tween the labor conditions in K.F. and corresponding private enterprises. In the spheres of activity where K.F. employs the largest number of its workers, i.e., in warehouses and industrial establishments, labor conditions are also generally regu lated through collective agreements in private enterprise. Comparisons with re spect to the latter group of workers indi cate that employees in the cooperative undertakings have generally a much more favorable position than in private enter prise, as regards both wages and condi tions of employment. The conditions na turally vary between the various branches of activity, with respect partly to prevail ing practice in certain spheres of work and partly to the different circumstances under which the different undertakings work. The ordinary working hours are 48 hours a week with one exception where shorter hours are applied. For the greater part of these employee categories a 48-hour week is established by law, and is thus applied also for workers employed in private enterprises of the same kind. As regards holidays, a considerable dif ference has hitherto been noticeable be tween cooperative and private enterprise. Thus an annual holiday of 12 days with full pay has been applied throughout for the cooperative employees whilst those in private service have generally had only 5 to 6 days annual holiday. Through the passing of a new law on holidays by the Swedish Parliament this difference will, however, be levelled out after 1940, when all workers will become legally entitled to an annual holiday of 12 days with pay. The regulations concerning pay during illness vary considerably between the dif ferent spheres of work. In a number of cases, K.F. pays 50 to 60 per cent of the employee's dues for sickness insurance, corresponding to a certain daily sickness allowance, e.g., 3 kroner per day. In other cases a certain proportion of the ordinary wages is paid out for a certain period per year. For instance, K.F.'s margarine fac tory pays workers who have been em ployed there for 5 years two-thirds of their wages during a period of 6 months. With respect to K.F.'s office staffs it is scarcely possible to make comparisons be tween current collective agreements in the cooperative and private forms of business, as office workers in private employ are in general not organized in trade unions. If comparisons are based upon investiga tions which have been made, however, it will be found that K.F.'s office staffs work under incomparably more favorable cir cumstances than those usually obtaining in similar private undertakings. The hours of work are, according to the collective agreements, 48 per week, but in actual practice they are about 5 hours less. Those who have been employed for a shorter peri od than 5 years received 12 days annual holiday with full pay. Those with a longer period of employment receive 3 weeks' hol iday with full pay every year. The highest stipulated sickness allowance is obtained after 7 years' employment; it consists of one month's full wages and three-fourths wages for a period of nine months. In ad dition the employees are provided with medical attention gratis. On the whole, K.F. and the trade unions in which its workers are organized Consumers' Cooperation March, 1939 have collaborated well together. Certain dissensions and differences have, never theless, been unavoidable, principally when efforts have been made from the workers' side to secure conditions which have diverged too greatly from those ap plying to workers in enterprises compet ing with K.F. In one or two instances dif ferences have led to open labor conflicts, of which the most serious was the strike at the Gislaved rubber factory in 1933. Only Cooperative Retail Employees Organized In general, business workers in Sweden are not organized in trade unions with the exception of workers in the Cooperative Movement. Those private enterprises with organized staffs are so few that they lack all practical importance. It may also be claimed that the conditions of employ ment for persons employed in the private trade leave much to be desired, not only as regards wages but also as regards hours of work and security in employment. Collective agreements are established with each cooperative society separately, and their contents and stipulated benefits thus display great variations. It can, how ever, be perceived that the general regula tions in the agreements have, in the main, come to be shaped similarly during latter years, principally on account of the labor advice service provided by K.F. At present K.F. employs two labor advisers, who are placed at the disposal of the societies without charge to assist them in arranging collective agreements. The societies also make use of this service to a large extent : during recent years about 90 per cent of the collective agreements concluded with consumer cooperative societies in Sweden have been arranged with the collaboration of one of K.F.'s labor advisers. The idea of a national agreement has in a strict sense never been seriously dis cussed, even though it has occasionally loomed in discussions of associated ques tions. From several points of view, how ever, there would appear to be insoluble difficulties to achieve a national agreement 37 covering all the societies, on account of the very different conditions of the vari ous societies. Wage conditions for shop managers and shop assistants are evolved according to two different principles. The wages of shop managers are thus generally estab lished with consideration to the size of the sales of the shops under their control but not tdj their age and experience. On the other hand the wages of shop assistants are related to the employee's age and ex perience, moving upwards from a com mencing wage, usually at the age of 18, to a highest level between the ages of 22 and 25 years. This fixed scale of wages for as sistants, which thus is not concerned with the wage-earner's labor performance, can imply palpable inconvenience during times of stagnant or declining sales. Seri ous efforts have therefore been made dur ing recent years to secure tests for another wage system which in principle is con structed on a certain percentage of the sales of the shop. The intention behind this new wage system is partly to place wages in relation to the performance of the employees and partly to couple the workers' wage interest with the society's interest in obtaining greater sales. Taken by and large the remaining reg ulations in the collective agreements are fairly similar. The hours of work are in general 48 per week. For overtime work a 50 per cent addition to the ordinary wage is paid on weekdays and a 100 per cent addition on Sundays and holidays. In most cases the annual holiday amounts to 12 days with full pay. Sicknesses allow ances usually equal half wages during a period of from three to six months. The societies supply their employees with suit able working garments and in many in stances have these laundered gratis. Employee Pensions in Cooperatives Earnest efforts have been made for sev eral years in the Swedish Cooperative Movement to solve the problem of em ployee's pensions. The matter was brought 38 up at the 1937 Congress, when a commit tee was appointed to work out for submis sion to the 1939 Congress proposals for a solution to the question. As a provision al measure until the problem has been finally settled, both K.F. and the local consumer cooperative societies have estab lished "Three per cent funds." The name is derived from the method employed: the employee allocates 3% of his wages and the society advances an equal amount. Altogether a sum equal to 6% of the em ployee's wage is thus set aside. These res ervations were originally equal for all employees, irrespective of age. Subse quently, however, the allocations have been increased, so that employees under the age of 35 still subscribe 3% of their wages, whilst those between the ages of 35 and 40 subscribe 4% and those over 40 subscribe 5%. The total allocations thus equal 6, 8 and 10% of the wages respectively. The reserved sums are placed to a personal account for each employee, usually in K.F.'s Savings Bank. These ac counts are blocked and the capital cred- - ited to them can only in certain exception al cases be used for other purposes than to assist to maintain the employees in their old age. Consumer Cooperatives and Labor Union Conciliation Committee For the purpose of contributing to the settlement of disputes concerning collec tive labor agreements in the Cooperative Movement without stoppages of work, an agreement has been reached between K.F. on the one side and the Federation of Swedish Trade Unions on the other to maintain a conciliation committee. This committee was established in 1926 and consists of six members of whom three are appointed by K.F. and three by the Trade Union Federation. The agreement implies that no stoppage of work of any kind may take place before the dispute has been brought before the conciliation committee and before the committee has taken all measures it considers possible to solve the question by peaceful means. THE RELIGIOUS ATTITUDE AND THE CONSUMER ECONOMY Dr. Horace M. Kalten MEN HAVE long known that the King dom of Heaven or City of God is not a place in the cosmos but a dream of the heart of man. This, however, has made its significance in the history of civiliza tion all the greater. I know of no system of religion, ancient or modern, which has not employed some conception of a City of God wherewith to measure and judge the City of the World, and I find that churches and sects may very profitably be distinguished from one another according to the use they make of the idea of the City of God in their own struggles for survival and expansion. Tradition and custom define the City of God as the polar opposite of the City of the World. The world, they teach, is evil; we are sinners by nature, our lives are a burden of labor and sorrow, and our salvation must be a repentance transform ing our nature and a turning away from the earthly life which is its condition. Thus devotion to the City of God can be accomplished only by spurning the City of the World ; there can be no victory for the spirit save as an overcoming of the flesh, whose mortification alone can bring life everlasting; to be alive to eternity we must be dead to the world. So, from the earliest beginnings to this day, men of God argued, however they lived, and were believed. Their way of delineating the relation of the City of God to the City of the World is now more eccentric than customary. Three hundred years of infiltration from the steadily growing sciences of nature and man have, in the Western world, transformed our notions regarding the re lation of the City of the World to the City of God. At least in Protestant circles, the two are no longer treated as antagon ists. Rather is the City of God regarded as the terminus ad quern of the City of the World. If the City of God is fulfill- Consumers' Cooperation March, 1939 ment, the City of the World is promise, and the nature of fulfillment is continu ous with, not opposed against, the ma terials and methods of the promise. Decline of the "City of God" In their beginnings all religions tend to set forth the relation of the City of God to the City of the World after the analogy of the relation of the early days of a man's life to his latter days, since the present is but the living past, living be cause centered on a present situation which it permeates and is permeated by. When new religions arise, they come first as plans of action which shall overcome actual evils and thereby open to the users of the plan a life more abundant. The in tent of each new religion is consumma- tory ; most so, indeed, when it presents it self as a scheme of salvation whereby men may be saved to "enjoy God forever." It defines, it gives a local habitation and a name to an ideal of good which enfolds both the satisfaction of unsatisfied desires and the shape of the means to this satis faction. But if the new religion survives and grows, it becomes embodied in insti tutions, it acquires property, it seeks alli ances. Its interests transfer from the sal- vational rule of life to the reassuring con servation of power and property. Seeking alliances and declaring enmities in accord with these new interests, it becomes a complex of spiritual contradictions and material compromises. Soon its role is to be the apologist in God's name of those new brethren, sharing their judgments and attitudes, and entering into an or ganic relation with their establishments. Thus it becomes a bulwark of the status quo and a perpetuator of the very evils it was by first intention designed to abolish. Such is the history of the different sects and parties composing the religions of the 39 world. The elder ones turn aside from their vocation, and this turning aside makes place for new sects and parties to come to birth. These, in their turn, renew the challenge to present forms of ancient evil and bring forth new conceptions of the City of God and new methods and programs of establishing it on earth as in heaven. A Secular Religion These resurgent challenges carry at their hearts a repudiation of the pretensions to religion of the older religious establish ments. More often than not, the new faiths reject and denounce the old as enemies of the City of God and the King dom of Heaven. A leader among the chal lengers of our day is communism; and in fascism and Nazism it does not lack emu lators worthy of itself. In program and principle communism evinces all the char acteristic differentia of a salvational re ligion. It describes this world as an evil condition, a class war whose battles make the shape of the City of the World that is foredoomed to destruction. It promises that this destruction shall be followed by the establishment of a new heaven and a new earth, a City of God formed in the shape of a classless society wherein men live happily ever after. It argues and pro poses a method of salvation which it calls "the revolution" and "the dictatorship of the proletariat." It proposes them as the ineluctable preliminaries to the attain ment of the classless Kingdom of Heaven. It denounces all its competitors and rivals as the enemies of this Kingdom of Heav en. Is not religion, as Marx said, "the opiate of the people," Did not Lenin write that it "teaches those who toil in poverty all their lives to be resigned and patient in this world and consoles them with the hope of reward in heaven ?" Of course, Lenin did not realize that he was writing an accurate enough description of communism itself, nor did Marx believe himself to be proposing but one more "opiate." Yet, in the country where com- 40 munism is the established church of the nation and the Communist party its priest ly order, the practice of communism as a v»ay of life is even more Utopian an ideal than the practice of Christianity in Chris tian lands. Communism is no less a postu late of belief than the faiths that it de nounces and no less a religion than the religion it opposes. It also consists today of an organization of vested interests which struggles for property and power even at the-price of defeating its original aims. It also behaves as an ecclesiasticism overruling and repressing the free spirit of true religion. A Frontier Faith This spirit can live only if nothing is permitted to divide the City of God and the City of the World, only if the one should pass into the other like the tones of a tune or the years of a life, with nothing changed in the nature of either, nor in the qualities of the human beings in whose existence and story both are stages. Living religion is and remains for ever pioneering religion, forever pushing forward the frontiers of the spirit toward that freedom to choose among alternatives of which abundance, spiritual and ma terial, is the condition and ground. It may not be bound to vested interests—whether of the spirit or of the flesh. It must reject both subjections. This is what the Pur itans had in mind when they declared that "rebellion to tyrants is obedience to God." To establish and maintain this growing and enduring liberty of the spirit, religion must forego Utopianism. It must disre gard the age-old notion that the City of God and the City of the World are for ever antagonists at war. It must treat the world of our daily lives as something that grows into the world of our aspirations naturally, without prelude of cataclysm or disaster, without break or discontinuity. As the man is to the child, consummation and not inversion, so, it must recognize, is the City of God to the City of the World. The Consumer's Creed Now, men of religion who observe and analyze conflicting programs of social change which should reshape the City of the World of our experience into the City of God of our hopes, claim that there is one which has traits capable of meeting these conditions. This is the consumers' cooperative movement. Postulated on the primacy of the consumer, consumer co operation seeks an economy of abundance by means which do not contradict, but confirm its ends; its going and its goal are one and the same. Any group of men and women associating together on Rochdale principles can bring them into action, joining their efforts with others as they go. They need not wait for revolutions or dictatorships, for totalitarian transforma tions, or personal changes of heart. The cooperative action is here and now; and the difference between the City of the World of Here and Now and the City of God of the World to Come is quantita tive, not qualitative. Hence the consumer ideal can consecrate and transform the most prosaic and material item of eco nomic behavior into a spiritual event. Its technique is such as to identify private in terest with public advantage. Its rule of association is voluntary, inclusive, and open. All individuals of all classes and nations and races and faiths come together in it, each strong with the strength of all, all strong with the strength of each. Thus the existence and record of the Interna tional Cooperative Alliance is a measure of all religions with their particularisms, their exclusions, and their warfares. It is a step in the practical organization of the brotherhood of man which Utopian re ligions, whether of God, of the State, of the Race, or of the Class, only pretend to. But this Alliance, and each of the co operative societies of which it is confed erated, has been born, and lives, and struggles to grow, in an age whose spirit and disposition are in many ways quite other than the cooperative. The age tends to contaminate the cooperatives' inward ness with its own quality. It endangers Consumers' Cooperation March, 1939 them by overstatement, by separating hopes from deeds, ideals from conduct, technology from vision. Cooperation can grow certainly only as human beings themselves grow, moment by moment, step by step. The past generates and molds the figure of the present; and the bifurcation of professions and practices which is the curse of Utopianism, when joined to the needlessness of the quality and trends of the present moment, can de feat the purpose which gives form to the future of this moment. The religious spirit must be an exceedingly realistic as well as a gay and gallant spirit. It must be alert with that eternal vigilance which is the price of competency no less than of lib erty. It must ever emulate the servant who was made ruler over many things because he was faithful in few. The fact is that consumers' cooperation is a business il luminated by a vision, a vision incarnated in a business, as a going, and growing, concern. If it succeeds, it succeeds only as it performs the same task better than its rivals; if it fails, it fails by performance and not by profession. It must live and work at fighting weight. This is a hard thing for the religionist, for men of re ligion are by tradition expected to be full of an enthusiasm for the City of God; and all too often they are so intoxicated by thek expectations as to be rendered incapable of realizing them in the soil and sense which alone can give them the body of life. Utopians by first intention, their Utopianism defeats them. To be vic torious, they must give up Utopianism and seek to shape the City of God out of the materials of the City of the World. For this, it may be the fact that the con sumers' cooperative movement provides sufficiently both goal and method. But the goal is a plan and the method is a procedure, and unless both are disciplined to the reality they are designed to change, they culminate in a way of talking rather than a way of living. (Reprinted by courtesy of THE SOCIAL FRONTIER, December, 1938) 41 MOVIES FOR CO-OP EDUCATION THE average American would rather pay to see a poor movie than be paid to hear a good lecture. This fact was brought home very pointedly about a year ago when Anders Hedberg, the famous Swedish cooperator, made a speaking tour of the United States. Mr. Hedberg is a most interesting and effective lecturer, so the fault was not his. During the tour he spoke in a number of towns where the predominant Swedish population should have turned out to hear him, both as an important figure in Swedish life and as a spokesman for the cooperatives. But even with good advance publicity, only a dozen to forty people came to hear him in some of these towns. Two weeks later a fieldman for Midland Cooperative Wholesale went through the territory with a projection machine and a couple of moving pictures. Hundreds of people turned out for the movies in these Siime towns. Our Story Has Not Been Told Here is a very pointed need. But we do not have a motion picture of the coopera tive movement in the U.S.A. to meet it. We have very little visual education ma terial of any kind to tell the story in pic tures that people are waiting to see and hear. Private interests are spending millions of dollars each year for documentary films to tell the story of profit business; mil lions of school children, church people and the general public are "eating it up," just because it's in free movies. The un democratic "isms" are putting their story across in pictures. But our story, the most democratic and most hopeful of all, re mains untold. Sweden and England Pioneer in Co-op Movies Swedish cooperatives for many years have used motion pictures to tell inter- 42 Wallace J. Campbell ested consumers about the cooperative way of doing business. Kooperativa For- bundet usually schedules production of one feature length picture and a number of shorter movies each year. Axel Gjores, former secretary of K.F., said when he was here last year that the use of motion pictures has become one of the most re liable methods of cooperative education. To supplement general pictures about the movement and cooperative products, the Swedish cooperatives make and use films for the training of cooperative em ployees. For it is easier to bring to a stu dent pictures of situations and methods of handling distribution problems which have been developed in many parts of the country than it is to present effectively these ingredients of education in any other way. In England the cooperative movement has gone into movie production in a big way. The Cooperative Wholesale So ciety, the Cooperative Union, the Coop erative Party and many of the larger re tail cooperatives have their own motion picture production and film libraries. CWS has specialty films describing co operatively produced goods from CWS soap to co-op radios. A colored movie was taken of the Wembley Pageant pre sented by the cooperative movement on Cooperative Day last year. Four retail cooperative societies in the city of Lon don have launched a joint moving picture production campaign and their first pro duction, ADVANCE DEMOCRACY, is receiving splendid notices throughout England. Most pretentious are the plans now under way for a series of musical com edies in sound movies to be used to pro mote the public interest in the cooperative movement. Plans for the Rochdale Cen tennial in 1944 include the production of a feature length movie in which Gracie Fields, highest paid English motion pic ture star, is being asked to play the lead ing role. During the course of their experimen tation with inexpensive motion picture production, the local cooperatives in Eng land have made a number of discoveries which have hastened the perfection of 16 mm. motion picture equipment. A Growing Demand in America In the last few years the American movement has felt an increasing demand for moving pictures foi« use in coopera tive education. Movies of "Cooperative Europe" taken by members of the parties of American cooperators who visited the European cooperatives four and five years ago are in demand even today. A three-reel movie of a "Trip to Co operative Nova Scotia" was produced through the joint efforts of three motion picture enthusiasts who took their cam eras along on the first Nova Scotia tour. To be most effective, that movie needed an accompanying lecture by someone who had been on the tour. It had that "talk ing" feature for hundreds of showings. About twenty-six prints of the movie were distributed to members of the tour party, cooperative societies and churches. Audi ences conservatively estimated at well over a hundred thousand heard the story of the Maritime Miracle, and as a result the number of people who took the tour jumped from 81 in 1937 to 188 the following year. Since the first "Trip to Cooperative Eu rope" was shot, supplementary material has been taken by many American visi tors. Dr. Albert Allinger shot three reels in color of the co-ops on the Baltic. Wil fred Husband, professional lecturer, took a moving picture sequence on the Swedish cooperatives. Both lecturers have been crowded for lecture and movie dates be cause their movie-lectures had both eye and ear appeal. The Cooperative League has imported from France a movie of the cooperatives Consumers' Cooperation March, 1939 at Nancy showing what the people can do for themselves, "When Mankind is Willing," and a film, "Clasping Hands," showing how the spirit and methods of cooperation are taught in the French Schools. Putting the Maritime Miracle in the Movies The Harmon Foundation, in coopera tion with the Cooperative League and St. Francis Xavier University, has recently produced a moving picture, "THE LORD HELPS THOSE . . . Who Help Each Other." This is the dramatic story of the miners, farmers and fishermen of Eastern Nova Scotia and Cape Breton Island who have lifted themselves out of dire pov erty and psychological despair through adult education and cooperative organ ization. The film is a three-reel, 16 mm., silent production, notable for its com plete description of the study circle method, the organization of cooperatives and credit unions, and for its deft reflec tion of the character of the people. A number of the regional cooperative associations in the mid-western and northern states have been building up film libraries of rather limited propor tions containing available movies of Eu ropean, Nova Scotian and local movies. Space does not permit mention of all the movies of local co-ops which have been produced. In each instance the results have been important enough for the co operative to feel that they have found one road to popular visual education. As a movement, however, we must confess that our efforts in this field have been far from perfection. Those closest to the production and distribution of these films have been most ready to point to these shortcomings and to suggest the need for concerted national effort to pro duce visual education material in the mo tion picture field which will stand up against the best available from outside sources. 43 Reaching Masses of People The si2e of the ultimate audience for the story of the cooperatives told in mov ing pictures will vary with the excellence of the material we produce. If the European co-op movies have reached tens of thousands and the "Trip to Cooperative Nova Scotia" was shown to well over a hundred thousand, the new Nova Scotia film, "THE LORD HELPS THOSE . . . Who Help Each Other" will reach more than a million because of the excellence of its story and its photography. Twenty prints are al ready in use and from the response today, one hundred prints will be in constant use before the year is over. If each print is shown only five times a month to a hundred at a time the picture will reach 600,000 its first year. This has been done at a maximum cost of $1,500 for pro duction and $200 for prints. The sale of prints and rentals will repay the en tire investment. Churches, schools and cooperative au diences are clamoring to see the story of cooperation told in motion pictures. Helen Topping has taken a copy of the film to Australia to show to audiences there. A candidate for parliament in British Col umbia is planning to use the film in his campaign. University extension divisions in Texas and Quebec are using the film and the Wheat Pools in Western Canada are buying copies. The Purpose of a Movie of the U. S. Cooperatives The time has come for a national film telling the story of the cooperative move ment in America. Such a film can play an important role in teaching the two million members of cooperatives in the United States that there is a cooperative movement in America. This in itself is a very worth while audience. For as the members of cooperatives increase in their enthusiasm for the movement their purchases in crease and their desire to extend their 44 cooperative activities into fields already developed successfully in other sections of the country will lead to greater coop erative progress. The second prospective audience for a film of the American cooperatives is com prised of border-line cooperators—people m communities where cooperatives are already organized who are sitting on the fence still saying that "cooperation will never work." The third and greatest audience is that which can be reached through the schools, the churches and the general public where a latent interest in coopera tion has already been developed. One-Fifth of a Cent Apiece It costs money to make movies — especially good movies. But if 1,000,000 people are told the dramatic story of co operation through a $10,000 film the cost per person is cut to a penny apiece— cheaper than any but the simplest leaflet —and more effective! If five million people eventually see a film of the Ameri can cooperatives, and that is not beyond the realm of probability, the cost is only a fifth of a cent apiece. If any one cooperative undertook the job it might be prohibitive. Tackled co operatively on a national scale, the job can easily be done. USE CO-OP MOVIES "The Jjorcl Helps Those — Who Help Each Other," a new 3 reel, 16 mm. film of the Nova Scotia adult education and cooperative pro gram, produced by the Harmon Foundation. Excellent photography. $4.50 per day, $2.25 additional showings, $13.50 per week. "Clasping Hands," 16 mm. silent, two reel film, showing how cooperation Is taught in the schools of France. Won the Grand Prize at the International Exposition, Paris, 1937. "When Mankind Is Willing," a 16 mm. silent three-reel film, with English titles, of coop erative stores, wholesales and factories in France. "A Trip to Cooperative Nova Scotia," 3 reels, 16 mm, silent with titles, based on the 1937 Co-op tonr. Rental: $8 per day, $1.50 for each additional showing or $10 per week. Available from : THE COOPERATIVE l^EAGTJE 167 W. lath St., New York City THE LORD HELPS THOSE—WHO HELP EACH OTHER A Motion Picture of the Nova Scotia Cooperatives, produced by the Harmon Foundation, 16 mm., three reels. Those who are familiar with the de velopment of the adult education and cooperative program in Nova Scotia un der the direction of the Extension De partment of St. Francis Xavier University reali2e the drama inherent in that devel opment. Sunk in poverty and faced with despair the fishermen, miners and farm ers in the Maritime provinces have wrought a modern economic miracle. Relative prosperity and security have been brought about through a program of study clubs, credit unions and cooperative pur chasing and production. It is a story packed with human drama and thrilling accomplishments. The Harmon Founda tion has successfully captured this drama in their new film, "The Lord Helps Those —Who Help Each Other." Starting with scenes of the destitution of these people, the film traces the pioneer work of Dr. J. J. Tompkins, Dr. M. M. Coady and others on the Extension staff. The best scenes in the film are those of the study clubs—small groups and larger meetings. Close-ups of individu als at these meetings are excellent. The film does a great deal to visuaU2e one of the intangible "planks" of the Antigon- ish program—"faith in the people." Out of the study clubs the film traces the growth of the credit unions—the founda tion of cooperative development. As the people start other cooperative enterprises —fish plants, lobster factories, stores, handicraft projects, housing—there is a real feeling of accomplishment. The film is strengthened by graphic illustrations of cooperative principles. The photography is excellent—the char acter studies of various types of people adding a great deal of interest to the film. As a result the film is thrilling as well as instructive. The Harmon Foundation has utili2ed effectively the dramatic elements of a group of people awakening to the possibilities of self-help. _ ^ r r E. EDWARDS Scenes from "The Lord Helps Those ..." Consumers' Cooperation March, 1939 45 COOPERATIVES ON THE MARCH Organized Labor and Cooperative Leaders Meet at Racine Racine, Wise.—Representatives of both the A. F. of L. and the C.I.O. got to gether on common ground as consumers at the Second Institute on Organized La bor and Consumers Cooperation, spon sored by the Cooperative League at Racine, Wisconsin, February 24-26. Head ing the significant panel of speakers were Henry Ohl, Jr., President of the Wiscon sin Federation of Labor, and Jacob Baker, President of the United Federal Workers of America. "Wisconsin organized labor advocates the development of Consumers' Coopera tives," said Ohl, "so the people may en joy the means to live without being com pelled to pay tribute to some non-contrib utor at every point in the struggle for existence." Based on first-hand study as Chairman of the Inquiry on Cooperatives in Europe, Baker declared that in addition to organ- - izing labor unions and farm marketing cooperatives the most hopeful way out of the economic dilemma is to also organ ize consumers cooperatives to reduce costs and improve quality. He also emphasized that while an enormous further growth of labor unions and farm marketing co operatives is needed there will be even tually an almost self-limiting situation in the labor movement unless alongside it workers develop a consumers cooperative movement. A striking piece of history was brought to light by Chris Jorgensen, Près, of the Racine Trades and Labor Council and active member of the Racine Consumers Cooperative, who read from the preamble to the constitution the statement that the purposes of the organizers of the Trades and Labor Council were "to assist in the formation of labor organizations ... to assist in the formation of cooperatives societies." Concluding the opening night program, Gunnar Mikkelson, Director of 46 the Wisconsin C.I.O., announced that their Executive Board had been instructed to study the possibilities of developing plans for the organization of cooperatives. Representatives of the Consumers Co operative Movement who described its de velopment in Europe and America before the assembled labor union delegates as "a necessary means of lowering price levels as well as raising pay levels," in cluded E. R. Bowen, General Secretary of The Cooperative League; Ellis Cowl ing, Education Director of the Trumbull County Cooperative Association of Ohio; Jacob Liukku, Mgr. of the Cooperative Trading Company, Waukegan, 111.; Da vid Sonquist, President, Central States Co operative League, Chicago; Herbert Katt, Manager, Racine Consumers Coop erative, and others. A sight-seeing trip was taken to the five oil-stations, grocery store and coal yard of this outstanding local cooperative, which last year "proved the power of the organized consumer dollar" by purchasing cooperatively for its members $217,000 of supplies and saving them $9,848. Others on the three-day program were John Colby, Managing Director of the Wisconsin Credit Union League; Chester Graham, Rural Adviser of the Wisconsin School for Workers; and Rev. James Myers, Industrial Secretary of the Federal Council of Churches and Chairman of the Committee on Labor Unions and Con sumers Cooperatives of the Cooperative League, who was the active organizer of the Institute. The attendance of 150 included repre sentatives of over twenty different types of unions in Wisconsin and Northern Illinois as well as delegates from rural and urban cooperatives. During the discussions, frank inter change of points of view between labor and farmers in a friendly spirit resulted in clarifying many issues and promoting helpful understanding looking toward more effective cooperation between these groups. New York—Cooperative Distributors, national mail-order consumers coopera tive, showed a net gain of $2,338 for the fiscal year ended January 31, 1939. The business volume for die year was $93,760. Under the direction of Olga Hourwich, who became General Manager late in 1937, the organization has moved into the black during a period of business recession. Cooperative Distributors serves more than 200 cooperative stores and over 3,000 individuals living in every state in the Union and in foreign countries in cluding the Belgian Congo, Czechoslo vakia, Syria, Transylvania, Guatemala, Japan, China and Denmark. In addition to doing a mail-order busi ness, Cooperative Distributors operates a retail store in New York City, and also wholesales drugs and cosmetics to coop erative stores throughout the nation. Columbus, Ohio—The Farm Bureau Cooperative Association, central organ ization serving 82 county-wide coopera tives in the state of Ohio, reported a total business of $6,856,932 for 1938 at its annual meeting here last week. The co operatives affiliated with the central or ganization are operating 51 petroleum bulk plants in the state and handle in addition to petroleum products, paint, electrical appliances, tires, commercial fertilizer and farm machinery. Brooklyn, N. Y.—The Eastern Coop erative Wholesale completed another record year in 1938 when its sales volume jumped to $717,000, 34.5 per cent ahead of its total business for 1937. ECW is basing its operating costs on an antici pated sales volume of $1,000,000 during 1939 and is already ahead of the month- by-month sales into which the year's quota has been broken down. A patronage refund of 1 per cent on total sales during 1938 will be paid to more than 200 consumer cooperative stores and buying clubs in 18 states and Puerto Rico. The refund will be applied to the purchase of shares in the whole sale. Because of increased economies ECW has already reduced prices on 60 items since the first of the year. The co-op wholesale has just purchased a new 12-ton trailer truck which will make special runs to cooperative stores in the Washington, D. C, Springfield, Mass, and Harrisburg, Penn, areas. Minneapolis, Minn. —Representatives of the recreation and publicity and edu cation committees of The Cooperative League of the USA announced this week that the National Cooperative Recreation School and the Cooperative Publicity and Education Conference will be held in the little town of Milltown, Wisconsin, this summer. The Recreation Conference will be in session from June 25 to July 8. The publicity and education conference will be held June 22-24 immediately pre ceding. The National Cooperative Recreation School is designed to train prospective leaders for recreation activities in the co operative movement. Courses will include instruction in drama, folk singing and dancing, music, puppetry, handicrafts, as well as lectures on group leadership and the philosophy of cooperative recreation. Educational directors, editors, publicity men and others active in the cooperative movement throughout the country will tske part in the three-day Cooperative Publicity and Education Conference. Fire Insurance ON YOUR FURNITURE SAFE - ECONOMICAL - COOPERATIVE Workmen's Mutual 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. Consumers' Cooperation March, 1939 47 TAKE A CO-OP TOUR THIS SUMMER The Cooperative League of the USA has completed arrangements for tours of European cooperatives and of cooperatives in Nova Scotia this coming summer. The Trip to Cooperative Europe will sail from New York July 1 on the new motorship Batory, going directly to Den mark to visit cooperatives, folk schools and housing projects there. The Tour party will visit rural and urban co-ops in Finland which do nearly 40 per cent of the retail business of the country. They will study the famous "trust-busting" co- cps in Sweden and Norway; inspect Scot land's hardy cooperatives and then spend several days in the "cradle of coopera tion" visiting the Cooperative Wholesale Society, and the gigantic co-ops in Lon don, as well as the "Shakespeare country," Westminster Abbey and other points of interest. The Co-op Tour will close with trips to France and Switzerland, arriving in New York, September 3. Leaders of the Tour will include Dr. J. Henry Carpenter, Chairman of the Committee on the Church and Cooperatives of the Federal Council of Churches ; Monsignor Luigi Ligutti, president of the National Catholic Rural Life Conference; and Rev. James Myers, Industrial Secretary of the Federal Council of Churches who is also a director of The Cooperative League. Cooperative members, educators, churchmen, students, social workers, journalists and all in terested in the social and economic movements of our day are invited to join the Tour party. The sixty-four days of all-expense travel will cost $675, or slightly over $10 per day. The Third Annual Tour of Nova Scotia Co operatives will begin with the Rural and In dustrial Conference at Antigonish August 21 and end September 2. Last year 186 American educators, cooperative leaders, churchmen and professional people visited the cooperatives in Eastern Nova Scotia inspired by a program of adult education sponsored by St. Francis Xavier University which led poverty stricken miners, farmers and fishetmen in that area to lift themselves out of their extreme poverty through cooperative effort. The Nova Scotia Tour will be under the direction of Dr. Hartley Hartman of Brooklyn. Other tour leaders will be Glenn Thompson, educational director of Midland Cooperative Wholesale, Minneapolis; Maurice Weiting, 48 Teachers College, Columbia University; and Father John C. Rawe, S.J. ; Creighton Uni versity, Omaha, Nebraska. The cost of the tout will be $67.50. This includes all expenses dur ing the tour but does not cover transportation to and from Nova Scotia. BOOK REVIEWS COOPERATIVES IN AMERICA—By Ellis Cowling. Introduction by J. P. Warbasse, Coward McCann. Special Co-op Edition, $1, available through The Cooperative League, 167 W. 12th St., N'. Y. Perhaps this book on consumer cooperation is the one we've been waiting for in this coun try. We have needed something besides the factual surveys and the thick philosophical tomes into which two classes most American books can be divided. We have needed a brief summary of the birth and evolution of the vari ous cooperative movements of the past century in the United States, plus a clear intetpretation of these movements against their respective backgrounds, and in addition an evaluation of the current status of the movement undistorted by bias or over-reaching enthusiasm. Cowling's book of 200 pages seems to meet these require ments better than any other so far published. Two things in this book should be specially commended. First is the clear and simple presentation of the economic situation growing out of the industrial revolution, out of which, in turn, the Weavers of Rochdale were trying to find their way when they stumbled upon the formula that has become known all over the world as the Rochdale principles. Second, the author skillfully analyzes the inner contro versies which rent the English cooperative movement during the first half century of its growth, and are even now distracting the Amer ican movement from the realistic approach which it should be making to its major prob lems. It is sometimes difficult to understand how the American movement has reached its present promising status in view of the ever- present triple obstacles of theoretical contro versy, crude trial and etror methods and wide spread misunderstanding. Once more the mass purchasing power of American cooperatives demonstrates itself. The price of Cowling's book in its original edition was $2. Through the efforts of The Coopera tive League of the U.S.A., a special edition is available at $1 per copy. Binding, paper and format are the same as in the more expensive edition. The reduction makes it possible for every association, guild and co-op club to add this worthy volume to its library. —IVER LIND, Associate Editor Midland Cooperator Consumers' Cooperation A National Cooperative Chronology National Cooperative Highlights A Report Cooperative Condensed Financial Statements E. R. Bowen The Consumer Consumed or Pure Applesauce Josephine Johnson Cooperation: A Way of Peace: A Review Harold Ë. Fey April 1939 CALENDAR OF COMING NATIONAL EVENTS Central Cooperative Wholesale, Annual Meeting, Superior, Wisconsin, April 17 and 18. Central States Cooperative League and The Cooperative Wholesale, Inc., An nual Meeting, Chicago, April 22-24.,, Credit Union National Association, An nual Meeting, New York, May 11-13'. Southern Conference on "Educating People to Help Themselves," Green-; ville, South Carolina, May 18-21. World's Fair Cooperative Center, New York, Grand Opening, May 30. Eastern Cooperative Wholesale, Annual Meeting, Brooklyn, New York, May 30. Board of Directors, The Cooperative League, Quarterly Meeting, Chicago, June 7-8. Board of Directors, National Cooperatives, Inc., Quarterly Meeting, Chicago, June 9. Cooperative League Publicity and Educa tion Conference, Milltown, Wisconsin, June 22, 23 and 24. National Cooperative Recreation School, Milltown, Wisconsin, June 25 to July 8. World Congress, on Education for Democ racy, Teachers College, Columbia Uni versity, New York, August 15-17. , Trip to Cooperative Europe, sails from New York in the Motorship Batory, July 1. Returns to New York Sept. 3. Tour of Nova Scotia Cooperatives, begins Antigonish, Nova Scotia, August 21, closing September 2. Forthcoming Meetings Not Yet Scheduled National Conference on Consumers' Co operative Medical Services Annual Meeting of Society of Cooperative Accountants National Conference on Cooperative In surance THE COOPERATIVE LEAGUE 167 West 12th Street, New York City 608 South Dearborn, Chicago DIVISIONS: Auditing Bureau, 167 West 12 St., N. Y. C. ' Medical Bureau, 5 E. 57 St., N. Y. C. Design Service, 167 West 12 St., N. Y. C. Rochdale Institute, 167 West 12 St., N. Y. C. Clusa Insurance Service, 1Ï5 Kent Ave., Brooklyn, N. Y. AFFILIATED REGIONAL COOPERATIVES Name Central Cooperative Wholesale Consumers' Cooperatives Associated Consumers Cooperative Association Cooperative Book Club Cooperative Distributors Cooperative Recreation Service Cooperative Wholesale, Inc. Eastern Cooperative Wholesale Farm Bureau Cooperative Ass'n Address Superior, Wisconsin Amarillo, Texas N. Kansas City, Mo. 118E. 28 St., N. Y. 116E. 16 St., N.Y. Delaware, Ohio 2301 S. Millard, Chicago 135 Kent Ave., Bklyn Columbus, Ohio Publication Cooperative Builder The Producer-Consumer Cooperative Consumer Readers Observer Consumers Defender The Recreation Kit Farm Bureau Mutual Auto Insurance Co. Columbus, Ohio Lansing, Michigan St. Paul, Minn. Seattle, Washington Indianapolis, Ind. Minneapolis, Minn. Chicago, 111. Walla Walla, Wash. Harrisburg, Penn. Indianapolis, Ind. 227 E. 84th St., N. Y. E.C.L. Cooperator Ohio Farm Bureau News Ohio Farm Bureau News Michigan Farm News Farmers' Union Herald Grange Cooperative News Hoosier Farmer Midland Cooperator Perm. Co-op Review Farm Bureau Services Farmers' Union Central Exchange Grange Cooperative Wholesale Indiana Farm Bureau Coop. Association Midland Cooperative Wholesale National Cooperatives, Inc. Pacific Supply Cooperative Pennsylvania Farm Bureau Coop. Ass'n United Cooperatives, Inc. Workmen's Mutual Fire Ins. Society DISTRICT LEAGUES Central States Cooperative League 2301 South Millard Ave., Chicago, Illinois Eastern Cooperative League 135 Kent Ave., Brooklyn, N. Y. Northern States Cooperative League Sexton Building, Minneapolis, Minnesota California Co-op Education Ass'n 1676 E. 85 Street, Los Angeles, Cal. Northern California Co-op Council 372—40th Street, Oakland, Cal. National Cooperative Women's Guild Box 1000, Superior, Wisconsin CONSUMERS' COOPERATION OFFICIAL NATIONAL JOURNAL OF THE CONSUMERS' COOPERATIVE MOVEMENT PEACE • PLENTY- DEMOCRACY Volume XXV. No. 4 APRIL, 1939 Ten Cents NATIONAL COOPERATIVE CHRONOLOGY The new Supreme Court Justice, Mr. Douglas, declares that the strength of democracy lies in its ability to keep pace with the rate of change of its virulent competitors. The Consumers' Cooperative Movement, as one of the forms of democratic organization, must prove its ability to help solve our economic prob lems more soundly and more rapidly than can dictatorship. Recent events in the Movement in the United States indicate that the Con sumers' Cooperative Movement intends to do its national job in the way in which it should be done. Some of the significant recent national events are here listed: Recent National Events October 1938—Election of national Directorate of regional cooperative representatives interlocking educational and economic functions. November 1938—Adoption in principle of a chart of A National Organ ization of the Consumers' Cooperative Movement. December 1938—Decision to open joint executive oflices of the Coopera tive League with National Cooperatives. January 1939—Acceptance of policy of uniform dues of 5c. per indi vidual member for national education and legislation. February 1939—Indications of get-together spirit among committees of National Cooperatives on grocery labels, tires and other products. March 1939—Decision to open Washington Legislative and Informa tion Office as soon as balance of funds are available. An organ to spread the knowledge of the Consumers' Cooperative Movement, whereby the people, in voluntary association, purchase and produce for their own use the things they need. Published monthly by The Cooperative League of the U. S. A., 167 West 12th St., N. Y. City. E. R. Bowen, Editor, Wallace J. Campbell, Associate Editor. Contributing Editors: Editors of Cooperative Journals and Educational Directors of Regional Cooperative Associations. Entered as Second Class Matter, December 19, 1917, at the Post Office ai New York, N. Y., under the Act of March 3, 1879. Price $1.00 a year. NATIONAL COOPERATIVE HIGHLIGHTS A NUMBER of requests have been re- ZV. ceived that more publicity be given to the membership generally of actions taken at the meetings of the Boards of Di rectors of the Cooperative League and Na tional Cooperatives. We will endeavor to comply with this desire regularly. The two Boards of Directors have now definitely voted to meet immediately following one another quarterly in Chicago. Their first meetings for this year were held on March 23 and 24; the League Board meeting on the 23rd and National Co operatives on the 24th. The meeting of National Cooperatives was its annual meeting as well as a meeting of the newly elected Board of Directors. Cooperative League Board Meeting At the November 1938 meeting of the Directors of the Cooperative League the Secretary presented a chart of A NA TIONAL CONSUMERS' COOPERATIVE OR GANIZATION which was adopted in prin ciple as a general blueprint of future de velopments. This chart and the accom panying explanation, as presented to the Directors, -was reproduced in the January issue of Consumers' Cooperation. As the second major step in national develop ment there was presented by the Secretary at the March 1939 meeting of the Di rectors A NATIONAL CONSUMERS' COOP ERATIVE PROGRAM OF ACTION with sug gestions covering immediate and future activities. It was first stated that the four neces sary corner stones had now been laid for a strong growth of the Consumers' Co operative Movement in the United States, namely: An Interlocking Directorate of the national education and economic or ganizations; the adoption of a National Organization Chart; the opening of Joint Executive Offices; the adoption of Uni form Dues. The National Organization Chart calls for six Directors Department Cömmit- 50 tees. As a beginning it was recommended and approved that three major commit tees be appointed as follows: Development and Organization Committee Commodities and Services Committee Insurance and Finance Committee The Directors then proceeded to ex press their preferences and the matter was left to the President to make the final appointments. There will be a rotation of at least one member of each committee each year. The Secretary then presented sugges tions for the consideration of the three committees, which followed the order of the list of subdivisions of the six major departments of a National Consumers' Cooperative Organization as shown in the chart previously published in January. Only the principal actions of the Direc tors in connection with the various di visions can be printed because of limited space. It should be added that in the future the meetings of the Directors of the Cooperative League will be two-day meetings; the first day will consist of the meetings of the three Directors Depart ment Committees which will invite the Chairmen of the various Division Com mittees to meet with them; the second day will consist of the consideration by the full Board of the reports of the Com mittees. The dates for the three remaining quarterly meetings in 1939 will be Wed nesday and Thursday, June \ and 8; September 6 and 7 ; and December 6 and 7. The Directors of National Coopera tives will meet on the FridayrTtamedi- ately following these dates, or June 9, September 8, and December 8. Development and Organization Committee The subject of Research brought out a vital discussion relative to whether or not research should be a matter for the Cooperative League, as the policy-making body of the Consumers' Cooperative Movement, to undertake, or for National Cooperatives, as the commodity organ ization. Further consideration was left to the coming meeting of the Development and Organization Committee. The discussion of Architecture re sulted in a request that Cooperative De sign Service bring in a definite proposal for starting a Cooperative Architecture Department. The selection of Personnel for the Movement was next considered but no immediate action taken. The discussion of Relationships re sulted in the following actions: the ap proval of a Conference at Greenville, South Carolina on May 18, 19 and 20 of lepresentatives from nine southern states to discuss the subject of "Educating People to Help Themselves," which Con ference has grown out of the interest in adult education and cooperatives on the part of a number of leading southerners who have visited Nova Scotia on the Co operative League tours in 1937 and 1938; the approval of further Coopera tive-Labor Conferences such as have been held at Dillonvale, Ohio, and Racine, Wisconsin; the acceptance of an invita tion to appoint a committee which will consist of the Directors of the League and others to represent the Consumers' Cooperative Movement in connection with a World Congress on Education for Democracy sponsored by Teachers Col lege of Columbia University and to be held in New York City on August 15-17. There was a lengthy discussion of the subject of the Study Group method of education which was reported to be highly successful by Directors representing Ohio Farm Bureau Cooperatives and Midland Cooperative Wholesale. Two new pieces of foreign literature in English are now available on the subject, namely, "The Present Position of Adult Education in Sweden" published by The World Asso- Consumers' Cooperation April, 1939 ciation for Adult Education (price 50c.) ; and "Cog or Collaborator—Democracy in Cooperative Education" by Herman Stolpe of Kooperativa Forbundet of Swe den (price 15). These can now be or dered from The Cooperative League. The question of the cooperative Press resulted in a unanimous motion by the Directors that it be the sense of the Board that regional cooperative associations urge their local cooperatives to subscribe to the national magazine CONSUMERS' COOPERATION for all their directors and employees. It was announced that the Film Com mittee of the League would meet on April 6 and 7 to formulate final plans for a national film of the Consumers' Cooperative Movement in the United States to be taken this summer. The an nouncement was also made that the Pub licity and Education Committee of the League would hold its fourth annual meeting at Milltown, Wisconsin, on June 22 to 24, immediately preceding the fourth ten-day annual Institute of the Cooperative Society for Recreational Education. The memoranda adopted at the meet ing of the Legislative Committee on Feb ruary 1 was then presented and discussed, after which the Directors passed two sig nificant motions having to do with Leg islation: the first motion instructed the Chairman of the Legislative Committee, M. D. Lincoln, and the Secretary of the League, E. R. Bowen, to arrange for the drafting of an amendment to the Farm Credit Administration Act permitting loans to be made to wholesale and retail cooperatives for the purchase of house hold supplies as well as vocational sup plies, and to cooperatives with not more than 15 per cent non-farm producing members. The second motion authorized the Executive Committee and the Chair man of the Legislative Committee to ar range to open a Washington Legislative, Information and Research Office and to select a representative to be in charge as 51 soon as the remaining necessary funds are available, which the Directors antici pate are in sight. Commodities and Services Committee Under the subject of Purchasing, the growing spirit of get-together on a na tional basis exhibited in the meetings of the various technical committees of Na tional Cooperatives was favorably com mended. Under Distribution it was urged that future actions by any regional co operative association along any line which might affect the whole movement be first submitted to the national organiza tions for the benefit of "collective think ing" and the approval of "majority de cisions" which were stated to be the heart of the cooperative idea. As a result of the consideration of the subject of Housing the Directors ap proved the appointment of Mary E. Arnold as chairman of a committee on industrial housing to develop in the United States the type of an industrial housing program which she has demon strated in Nova Scotia. Particular atten tion was paid by the Board to the begin nings of practical medical consumers' cooperative developments and the Secre tary was authorized to arrange with the Bureau of Cooperative Medicine for the calling of a national consumers' coopera tive medical conference. The great suc cess of burial cooperatives organized by groups of local cooperative associations was noted and similar developments else where were urged. Insurance and Finance Committee Under the division of Insurance the Directors authorized the calling of an other national conference on cooperative insurance. The apparent significant results from the Cooperative Condensed Balance Sheet and Operating Statements originated by the Cooperative League were noted and the announcement made that, following conferences with a number of coopera tive accountants which had resulted in 52 ironing out various questions which had arisen, an article would appear in the national magazine at an early date which would present the matter publicly. The possibility of uniform Auditing of regional cooperative associations was con sidered, after which the matter was left to thé Secretary, the Director of the Ac counting Bureau and the Society of Co operative Accountants to consider the subject further and report back to the Directors Committee. The Secretary was instructed to request copies of their latest annual certified auditors' statements from each regional cooperative association. The calling of a conference of Cooperative Credit Men was also approved to be held with the next meeting of the National Society of Cooperative Accountants. A report of the Committee on coopera tive Banking was presented which indi cated that progress was being made to ward the end of the further development of cooperative banking on a regional and national basis but no definite announce ment of action could as yet be made. Treasurer's Report The report of the Treasurer, L. E. Woodcock, showed that seven of the re gional members of the League had al ready accepted the payment of uniform dues of 5c. for all their members. The Board urged that all the other members likewise approve of equal support of the publicity, education, research and legis lative activities of the national movement in order that the entire budget may be raised to carry on the vital minimum program of action as unanimously ap proved by the Board of Directors. Other Subjects on the Agenda The Credit Union National Association of Madison, Wisconsin, was accepted into fraternal membership, following the unanimous approval of an application by its Executive Committee. The President was requested to pre pare a draft of "A Cooperative Declara tion of Peace" to be published in the na tional magazine. National Cooperatives, Inc. Annual and Board Meetings The annual meeting of stockholders of National Cooperatives, Inc., was held on March 24 which was followed by a meeting of the newly elected Board. The president, I. H. Hull, and the secretary-treasurer, Howard A. Cowden, were reëlected for their sixth successive terms. J. L. Nolan and George Barrett were elected vice-presidents. A new office of chairman of the Board was created and A. J. Hayes elected as Chairman. S. C. Colburn was ree'lected General Manager. The directorate was increased from 18 to 32 and the four regional cooperative associations of Indiana, Mich igan, Ohio and Pennsylvania which were previously indirect members through United Cooperatives, Inc., were accepted into direct membership. The executive committee was increased in number from three to five and the following members •were elected: I. H. Hull, H. A. Cowden, A. J. Hayes, J. L. Nolan and L. A. Taylor. The balance of the Directors' meeting was given over largely to a consideration of the reports of technical committees. Among the resolutions adopted by the annual meeting were the following: WHEREAS, the law which created Farm Credit Administration provides that loans may be made to a cooperative, otherwise eligible, whose principal business is that of purchasing farm supplies for its members, but not to such a cooperative if its principal business is the purchase of household supplies ; and, WHEREAS, there is a growing demand among farmers that their regional cooperatives shall undertake the purchase and distribution of household supplies and other consumer goods, along with farm supplies ; now, therefore, BE IT RESOLVED, that National Coopera tives, Inc., assembled in annual meeting in Chicago, III., this twenty-fourth day of March, 1939, shall take prompt' action looking towaid the introduction in the Congress of an amend ment to the Farm Credit Act which will make it possible for producers to serve themselves with household supplies through bona fide farm supply cooperatives, even though the furnishing of household supplies is or may be come the principal business of the cooperative ; and, BE IT FURTHER RESOLVED, that included in the amendments shall be one providing that the percentage of producer members required of existing cooperatives, and those to be or ganized, in order to qualify for FCA loans, shall be not more than 85 per cent of the total membership. Consumers' Cooperation April, 1939 BE IT RESOLVED THAT we urge all affili ates of National Cooperatives, Inc. to contact their Senators and Representatives in Congress urging them to actively support H.R. 4312, a bill to provide a cooperative law for The District of Columbia. BE IT HEREBY RESOLVED that National Cooperatives, Inc., recommends, in the interests of developing and co-ordinating trie broad erogram of the cooperative movement in the nited States, that the members of the Na tional Cooperatives be also direcr members ot the Cooperative League of the U.S.A. George L. Cooley, Founder of Ohio Farm Bureau Cooperatives Dies Funeral services for George L. Cooley, of Dover Center, Ohio, founder of the Ohio Farm Bureau, were held Saturday afternoon, March 18. Mr. Cooley was 78 years old. Familiarly known as "Uncle George" to thousands of persons throughout Ohio and many other parts of the country, Mr. Cooley led the organization activities in 1918 and 1919 which resulted in the formation of the Ohio Farm Bureau. At the time of his death, he was a member of the board of trustees of the Ohio Farm Bureau Federation, in which position he has served ever since its or ganization. He was also president of the Farm Bureau Mutual Automobile In surance Company, and a member of the executive and investment committees of that organization. In addition, Mr. Cooley was a member of the boards of directors of the Farm Bureau Mutual Fire Insurance Company, the Farm Bureau Life Insurance Company, the Ohio Farm Bureau Corporation, the Farm Bureau Rural Electrification Co operative, and the Farm Bureau Coop érative Association. A life-long worker in many organiza tional activities for community welfare and agricultural advancement, Mr. Cooley led the promotion of numerous coopera tive and other enterprises which resulted in rural and civic reform. 53 COOPERATIVE CONDENSED FINANCIAL STATEMENTS E. R. Bowen (The following is presented for your careful study and comment. The idea, has been dis cussed with a number of cooperative account ants and auditors and before audiences of co operative members. The results have been sig nificant in enabling cooperators to understand more clearly the true condition of their asso ciation and thus to decide to vote Earnings to Capital or Reserves rather than to Patronage Returns, as well as to raise additional Capital. ) THERE is a true statement, which grew out of capitalistic ethics, to the effect that "there are three kinds of liars — plain liars, blamed liars and statistics." No wonder such a saying was coined, for capitalistic Balance Sheets and Operating Statements are purposely secretive and so designed as to partially cover up the true facts about a business except to a few insiders. However, there is another say ing that "figures cannot lie," which is also true. For the ten figures from 1 to 0 can be used even better as media for tell ing the truth than the 26 letters of the alphabet. Cooperatives are built on mutual con fidence resulting from thorough knowl edge of the condition of the business by the members as well as the officers and em ployees. Cooperative Balance Sheets and Operating Statements should be so de signed as to disclose "the truth, the whole truth and nothing but the truth." They should be self-readable. They should be sc simple that everyone can fully under stand them. They should be "economic portraits" which instantly show whether the cooperative is healthy or sick, strong or weak. In Sweden, when the members join study-circles they are urged, first of all, to study the Balance Sheet and Operating Statement. And rightly so, for, as a repre sentative of Dun and Bradstreet says, "every policy of an executive staff has its reflection in the Balance Sheet or Oper ating Statement." Cooperative auditors submit elaborate 54 financial statements to the directors of a cooperative. The directors, in turn, sub mit abbreviated statements to the mem bers. These generally follow the form of capitalistic statements. I propose that we should also publish special Cooperative Condensed Balance Sheets and Operat ing Statements in order to enable every one to more • easily understand the true condition at the close of each accounting period. The following model forms are accordingly submitted for your consid eration. The figures given below were taken, in the main, from an actual local coop erative balance sheet, except that only round figures in thousands are used. COOPERATIVE CONDENSED BALANCE SHEET Assets Liabilities 1. Cash $ 1,000 1. Earnings $ 6,000 2. Receivables 10,000 2. Payables 10,000 3. Inventories 7,000 3. Reserves 4,000 4. Investments 2,000 4. Mortgages 10,000 5. Facilities 25,000 5. Capital 15,000 Total $45,000 Total $45,000 Perhaps the simplest way of defining Assets and Liabilities is to say that Assets are what you "own" and Liabilities are what you "owe." The story is told that a certain directot of a local cooperative 'phoned the mana ger one morning after he had received the current Balance Sheet at a directors' meeting the night before, and said "I have been looking over the figures you gave us and there must be something wrong. Both sides 'jibe'." Yet that's what the final totals on a Balance Sheet must do — the Assets must always equal the Liabilities—what the cooperative "owns" must always equal what it "owes" on the statement. However, the president of cne of our Cooperative Banks says that one of the problems he faces in making loans is that occasionally the Balance Sheet of a cooperative applying for a loan "does not balance." In this Condensed Balance Sheet all types of Receivables, Investments, Facili ties, Payables and Reserves are included as single total amounts. The figures cov ering Receivables, Inventories and Facili ties are net amounts after deducting de preciation. You will note at once that the order in which the figures are given in the above Cooperative Balance Sheet is not the same as is usual in a capitalistic Balance Sheet. The Asset side of the statement is fairly similar. Cash is naturally placed first. Receivables precede Inventories. Invest ments and Facilities follow. These are in the approximate order of their quick con vertibility into Cash. The Liability side is rearranged much differently from capi talistic statements. Earnings are put at the top, where ordinarily they are placed at the bottom. This arrangement of the five Asset and the five Liability items has been made in the belief that there should be a rather definite relation between cer tain Assets and Liabilities in a coopera tive association, even if not so considered in a capitalistic business. For convenience in making such comparisons the Asset and Liability items are numbered. (1) Cash Should Equal (1) Earnings and (2) Payables Some cooperative auditors describe Earnings in a cooperative as Savings. They are distinctly not Profits. You cannot make a profit in dealing with yourself. And you are the joint owner of a coop erative. The teason why Earnings and Payables should be definitely related to Cash is because the manager and directors may be called upon by the members at the end of any specified period to produce the Earnings in the form of Cash and by the creditors to meet the Payables. The mem bers have the right to demand that the Earnings be in Cash in order that they may determine how they wish to allocate them—whether to use that part of the Consumers' Cooperation April, 1939 Cash which represents Current Earnings to distribute in the form of Patronage Returns, to reduce Payables or Mortgages, or to retain as Reserves or Capital in or der to increase some form of Assets. The creditors also have the right to demand that there be sufficient Cash to meet the Payables. Reserves should equal (2) Receivables (3) Inventories and (4) Investments The Receivables item should include both accounts and notes. Receivables should be conservatively depreciated to their probable net collectible value. It is said that "creditors have better memories than debtors." While the Payables which a cooperative owes should be worth 100 cents on the dollar on the books of its creditors, it is generally quite true that th,e Receivables which a cooperative owns are seldom worth 100 per cent of their face value, particularly if they are a large amount and old. Inventories should be depreciated by the full^ amount necessary to cover any partial obsolescence or unsalability at full current prices, so that the normal per centage of margin may be maintained during the following accounting period. Investments of a local cooperative usu ally consist largely of shares owned in other cooperative institutions such as the wholesale which serves it. They should be carried on the books at their true net worth. Reserves should include both the amount which is the property of all the members, which may be called "General Reserves" or "Social Capital," together with any amount which may be the undis tributed property of certain members, in the form of "Individual Reserves" or ' Members Equities" which are presumed to be distributed at some future time. In a cooperative, the amount of Re serves should equal the Receivables, In- \entories and Investments. In other words, the Receivables, Inventories and Investments should be in a sense "velvet." They should be represented by Interest- Free Reserves. 55 Cooperatives Should Do Business For Cash All of the above is based on the as sumption that the cooperative has any Receivables or Payables at all, at the close of an accounting period. The ideal is CASH for goods sold and also CASH for goods purchased. "Debt ii, the invention of the devil," as the Rochdale Pioneers correctly described it. It is largely the result of the faulty capi talistic system which fails to distribute sufficient purchasing power in cash to equal the amount of production. Sweden has shown the way. The Swedish cooperators faced the problem of Debt in 1920 and resolved to conquer it. They first put their individual family budgets on a cash basis. Then the local cooperatives were also able to pay cash for their purchases. Confidence grew and members invested their savings in addi tional capital until today the cooperatives of Sweden practically "owe no man any thing"—neither banks, government nor producers. It is for that reason that they are able to face and challenge the trusts and bust them. In fact, the local coopera tives in Sweden generally pay their whole sale in advance for their purchases—they deposit their funds daily to a joint ac count with the wholesale and each day shipments are charged against their cash balances, leaving a net cash balance to their credit at the end of each day. The problems of poverty, unemploy ment and tenancy will never be solved until business is done on a cash basis. For only on such a basis can people re cover ownership and control of distribu tion and production. Every cooperative should set as its goal to "neither give nor accept credit," and progress as rapidly as possible to that end. It will require "char acter," as Mr. Johansson of Sweden says, but in the case of the Swedes, they proved that they had the character and ability to stick to it until they had achieved their goal of Cash terms. American coopera tives should do likewise. 56 (5) Capital Should Equal (5) Facilities Facilities include land, buildings and equipment. In some cases such Facilities are mortgaged and any such amounts should be listed separately from other Payables. Capital should be the net amount of common stock issued to mem bers or partially paid for. Capital should equal Facilities. The members do not actually own the coop erative until the amount of Capital equals the amount .invested in Facilities and there are no mortgages. So long as there are Mortgages they may be added to Capi tal to equal Facilities. (In the case of a few cooperatives, enough Earnings have been voted to Reserves to cover part or all of the Capital requirements and the Facili ties are equaled in part or whole by Re serves rather than Capital.) It should always be remembered that "you cannot control what you do not own" — that either Capital and/or Re serves must equal Facilities in order for the members of a cooperative to really own and control it. An "Improved" Balance Sheet Suppose you were a voting member of the cooperative which had the above Bal ance Sheet. Would you be satisfied? If not, what would you vote to do? This question has been repeatedly asked of audiences with whom this Cooperative Condensed Balance Sheet has been dis cussed. Generally there is a pause for demo cratic thought and then someone suggests that the Mortgages should be paid off. What to do about them, then, is the ques tion. There is too little Cash on hand to pay them off. Receivables may be as low, so this cooperative reports, as they can yet well be, considering the nature of the business. They were said to be all current and only about the minimum nec essary considering the monthly volume. Inventories were also reported to be low for the volume—there was a rapid turn over of stock and the inventory was live and not obsolete. There was accordingly little hope of getting Cash out of Re- Consumers' Cooperation ceivables or Inventories to reduce the Mortgages. Finally a bold individual proposes the only kind of a real answer—that the mem bers purchase another $5,000 shares of common stock, which will "kill two birds with one stone"; the Cash received will pay off half the Mortgages and the in crease in Capital to $20,000 will mean that they will own the cooperative sooner, while now their creditors own it in part. The next question raised is what to do with the Earnings. Should they not put the cooperative on a solid financial basis before paying out Patronage Returns? Of course a cooperative in the condition of this one could not pay a large return in cash, for the Cash is not on hand and it is unwise to borrow money in order to pay Patronage Returns. The only ques tion, accordingly, is whether to vote to transfer the Earnings to Reserves or Capi tal. If the members buy additional shares, that will eventually increase the Capital to equal the Facilities. And since Reserves are entirely too low, the only real ques tion should be whether to vote the Earn ings to General Reserves or to Individual Equity Reserves. Arguments could be ad vanced for either of these methods of transferring the Earnings to Reserves. Only the members themselves can decide. A final point is raised that some of the Earnings are profits on transient business. What to do with such profits should never be a question. They should always be used for education and expansion. After these actions are taken the "Im proved" Balance Sheet would look like this. How are you satisfied with it com pared with the way it was? It is not yet ' ideal" but it is nearer than it was. (IMPROVED) COOPERATIVE CONDENSED BALANCE SHEET Assets Liabilities 1. Cash $ 1,000 1. Earnings $ 0 2. Receivables 10,000 2. Payables 10,000 3. Inventories 7,000 3. Reserves 10,000 4. Investments 2,000 4. Mortgages 5,000 5. Facilities 25,000 5. Capital 20,000 An "Ideal" Balance Sheet Summing up what has been said be fore relative to the relationships which should be maintained between the Assets and Liabilities, an "ideal" reconstruction of the Balance Sheet would be about as follows: (1) Cash should be increased to equal (1) Earnings and (2) Payables. (3) Reserves should be increased to equal (2) Receivables, (3) Inventories and (4) Investments. (5) Capital should be increased and Mortgages paid off so that Capital will equal (5) Facilities. After these are done, the Balance Sheet will look like the following at the end of the year and the cooperative will then really be in a position to pay Cash Patronage Returns. (IDEAL) COOPERATIVE CONDENSED BALANCE SHEET Assets Liabilities 1. Cash $16,000 1. Earnings $ 6,000 2. Receivables 10,000 2. Payables 10,000 3. Inventories 7,000 3. Reserves 19,000 4. Investments 2,000 4. Mortgages 0 5. Facilities 25,000 5. Capital 25,000 Total $45,000 April, 1939 Total $45,000 Total $60,000 Total $60,000 There, of course, still remains the problem of educating the members to pay CASH for their purchases which will en able the cooperative to pay CASH for its purchases, and thus eliminate from the Balance Sheet both the item of Receiv ables and Payables altogether. Condensed Comparative Sub-Statements Five Condensed Comparative Sub- statements are also of great value—cover ing Assets, Liabilities, Operations, Ex penses and Departments. The Compari sons of Assets and Liabilities are subsidi ary to the Balance Sheet. The Compari son of Operations is a condensation of the more complete Operating Statement. The Comparisons of Expenses and De partments are subsidiary to the Operating Statement. All of these sub-statements show the differences between the present and the previous year. Percentages are as neces sary to financial statements as kilowatts to electricity and inches to measurement. 57 CONDENSED COMPARISON; OF ASSETS Present Previous Difference Year Year + or — Per cent of Difference CONDENSED COMPARISON OP EXPENSES 1. Cash 2. Receivables 3. Inventories 4. Investments 5. Facilities Total ..... $... It may in time be possible to set stand ards as to the percentages which a coop erative should have of each of the five items in its Assets—how much Cash, Re ceivables, Inventories, Investments and Facilities is the best proportion, accord ing to the kinds of products handled. A determination of such percentages will have to await thorough research studies as the Movement grows and becomes more standardized. However, the varia tions from year to year in each coopera tive are worthy of careful consideration by the employees, officers and member ship. CONDENSED COMPARISON OF LIABILITIES Present Previous Difference Year Year + or — $.............................. «I.............................. $.............................. Per cent of Difference 1. Earnings 2. Payables .............................. ......—... 3. Reserves ___................. .............. 4. Mortgages .............................. v' .............. 5. Capital .............................. ist .............. Total «__.................._ ''«._........... Like the Comparison of Assets, time may be able to determine as to the best ratio between the Liability items. .Until then it is well to study carefully the?vari ations in each cooperative between com parative periods. A summary of the av- erage of the five items under Assets and Liabilities for each district and for all the local units affiliated with any wholesale would also be of advantage to have with which to compare the figures of each local cooperative. CONDENSED COMPARISON OF OPERATIONS AMOUNT PER CENT Present Previous Difference Present Previous Difference Year Year + or — Year Year or 1. Volume 2. Margin 3. Expense 4. Earnings 5. Other Income «~ A Condensed Operating Statement is Other Income, Comparisons by amounts second only to a Condensed Balance and percentages for the present and the Sheet in importance. Operations can be previous years to date are invaluable as indications of the direction in which the cooperative is going and the rate of speed. summarized into the five items of Vol ume, Margin, Expense, Earnings and 58 Consumers' Cooperation 1. 2. 3. 4. Present Year Administration $..............,.. Miscellaneous .................. AMOUNT Previous Year $.................. Difference + or — $................. PER CENT Present Previous Year Year $ $ Difference + or — ..................% % % '. % Total $.................. $.................. $ While cooperative auditors' statements give details as to Expenses, a more im portant tiling for the members is to have a summarization of the four principal classifications—Administration, Distribu tion, Finance and Miscellaneous. It is im portant that Expense items be properly classified and that the Miscellaneous item be kept as small as possible. Administra tive items are not difficult to classify. Dis tribution Expense should include sales, advertising, education, office, and similar expenses. Finance includes interest, dis counts, taxes, etc.,—this item should be the difference between the amounts paid out and the amounts received for these purposes. Some statements classify any such amounts which are paid out as Ex penses, but any such amounts which are received as Additional Income—it is bet ter to offset any income against the outgo and list the net difference as Finance Expense. CONDENSED COMPARISON OF DEPARTMENTS % GROSS MARGIN % EXPENSES % EARNINGS Present Previous Present Previous Year Year Year Year Present Previous Year Year Gas and Oil ..................% ..................% .......... Groceries ..................% ..................% .......... Coal ..................% ..................% Average .................% ..................% .......... It is important that the members of a cooperative know the results by Depart ments, as well as the total results of Op erations. To make a dependable statement by departments on which to base judg ments preceding any actions to be taken, it is necessary that the direct expenses which are incurred by each department be accurately charged, and that the general overhead expenses be allocated to De partments in the amounts to which they are properly applicable. We Must Develop Cooperative Statistical Knowledge It is said that in general we are eco nomic illiterates. It is not surprising if we are. We, the people, have given over the direction of our economic affairs to a few middlemen and have depended upon them, far more than upon ourselves, to manage production, distribution and finance. They have largely failed. They April, 1939 have not produced plenty for all. They have not equitably distributed what has been produced. They have not provided employment for all. The people have in creasingly become poverty-stricken, have become unemployed, have lost ownership and are servants, as they formerly were serfs and slaves. The primary necessity to enable the people to recover ownership and control of their economic functions is for us to be willing to apply liberty, equality and fraternity to our economic organizations; then for everyone to gain the necessary knowledge of how to do it. This will re quire as much or more than any other one thing, a thorough knowledge of financial statements. Because of the present lack of knowledge on the part of the people gen erally, it is necessary that statistical state ments be presented in the simplest pos sible form. It is for this purpose that the 59 above special Cooperative Condensed Financial Statements were designed. They are not to be considered as substitutes for the usual, more complete Balance Sheet and Operating Statements with detailed subsidiary statements which cooperative auditors supply to every cooperative, but are intended to be supplementary to such more complete statements. It is believed, judging by the reaction of cooperative individuals and audiences, that these Cooperative Condensed Finan cial Statements will serve a valuable pur pose in helping Members, Officers and Employees to a correct understanding of the exact condition of their cooperative and thereby enable them to reach the best final judgments, after democratic dis cussion, as to the next steps to take to ad vance soundly with the utmost possible speed. THE CONSUMER CONSUMED OR PURE APPLESAUCE EDITOR'S NOTE: This puppet play written by the author of the Puliizer Prize novel "Now in November" has been produced before coopera tive and civic groups by Marjorie and Josephine Johnson of the St. Louis Cooperative Consum ers. Very simple hand puppets are used and are operated behind a screen containing a small stage. Hand puppets are easy and fun to con struct and operate. "Puppets for Amateurs," Kit 40, Cooperative Recreation Service, Delaware, Ohio, 25c., gives complete directions. "Inexpen- tive Puppets" by Staples which is available from the National Recreation Association, New York City, for 10c., is also available. This play is copyrighted by the Cooperative League. Per mission for performance may be secured from The Cooperative League, 167 West 12th Street, New York City, by payment of a royalty of one dollar. SCENE I (ENTER FARMER. An apple on the ground.) FARMER I plow the weed, I plant the seed, This orchard I have grown. I spray the bugs, I squash the slugs, And wear my shoes to bone. This apple, then, By laws of men Is mine, to sell or eat. I'll pluck him down And off to town To buy shoes for my feet. (He picks up the apple. Up pops the BROKER.) 60 Josephine Johnson BROKER Wait a minute, Hayseed! FARMER What for? Who're you? BROKER I am the Broker, the Buyer, —The Buffer, you might say. I'm the guy who speaks for other guys A million miles away. You give me the apple, And /'11 start it on its way ! FARMER How much? BROKER Well, times are hard—and apples soft. FARMER It's a good apple. It's a damn good apple! I spent my whole life raising him! BROKER Yeah? Well, there's lots of good apples around ! (He sings) I can get apples from Jones or Smith, I can get apples without worms or with, I can get apples from Texas to Maine— Apples are common as taxes or rain! It's a privilege for you to have me here on your farm ! FARMER (bows) I do thank you for coming, sir ! BROKER Well, hand me the apple. I'll give you some credit. Cash you might spend—and get you in debted. (The FARMER hands over the apple and puts his hands behind his back. The BROKER starts to walk away.) FARMER Oh, I forgot!—you pay me! BROKER (waves hand) Tsk, tsk! Credit, Mr. Farmer!—credit— don't you understand? (He sings) Oh, credit, is a wondrous word! —A mystic, magic sign. It means that what I have is yours, And what you have is mine. I don't pay you, You don't pay me. Just take what you want, And everything's free. Never ask for cash, sir— It isn't being done. In buying and in selling Credit's much more fun ! Oh, credit is a magic word, A mystic, magic sign. It means that what I have is yours, And what you have is mine. And when the year rolls round at last, What matter if you've found You owe me house and home and hogs, You owe me sky and ground? Why, credit, Mr. Farmer, Makes the world go round ! FARMER You make my head go round . . . BROKER Well, by-by! I'll be seeing you! (He disappears. The Farmer gazes down ar his stocking feet and slowly disappears. ) SCENE II (The BROKER appears to the Wholesaler, with an apple marked lOc.) BROKER Good morning, Mr. Wholesaler! Times are hard, and apples scarce: Consumers' Cooperation April, 1939 It's all that I could do To find this splendid apple And bring it straight to you! (He steps jorward—then backs up) My travelling expenses, of course, you must consider . . . WHOLESALER All right, all right; you'll get your fee. But next time bring an apple That's big enough to see! (The BROKER hands the apple to the Wholesaler.) BROKER By-by. I may be seein' yeh. (A hand appears, to put a 20c. sign on the apple.) (The BROKER reappears on the opposite side of the stage.) Well, here I am again, Mr. Wholesaler! The apple, please! (The WHOLESALER hands it to him with a bow, and disappears. A hand comes up to put a 40c. sign on the apple.) The CANNER enters, carrying a can.) CANNER Well, what have you got for me? What I want's an apple— Just any apple'll do. I'll mash him and I'll smash him— You won't know him when I'm through ! BROKER Just what you want, sir! —Only my travelling expenses, of course, My fee— You can't get personality Without paying for it! CANNER Yes, yes, of course. I understand. —The personal touch! Well, gimme the apple. (The BROKER hands him the apple and disappears. The CANNER pounds apple into a can with a label on it.) NON SUCH DEELICIOUS APPLESAUCE! Ah, there we are! And now for Mr. Hoggeldy Everything! (Up pops the BROKER again.) Well, here's that man again! Listen, Brother— BROKER Oh, you can't do without me! 61 I'm here, I'm there, I'm everywhere. There's no place where I'm not ! No monkey trades a cocoanut Without me on the spot! CANNER All right, all right! Oh, we've been to so much trouble To make this sauce for you! We've mashed it and we've hashed it —And we've vitamized it too! We've slow-toasted it and roasted it; We've deodorized and sterilized, Virilized and psychoanalyzed, We've aged it and enraged it, We've mellowed it and yellowed it, We've sliced it and spiced it And magnetized it too. It'll give you energy and lethargy— There's nothing it can't do! —Gets your tonsils out and your teeth back in And curls your hair for you— Contains anthracite for your appetite, And lead to stabilize, Keeps emotions on the up-and-up, Puts sparkle in your eyes— Oh, Lord, it's just wonderful! —You can't pay me too much ! BROKER What's the big idea? You can't fool me! Just pass over that can. CANNER Oh, my word, sir ! I'm sorry. I thought you were just a consumer. Well, here's the order for Mr. Hoggeldy Everything, And see that he pays us both ! BROKER Trust me! CANNER Eighty cents the price, and no less. All purest water and straight apple- peelings. Not a worm in a wagon-load! BROKER Okay, okay. (They sing in chorus) Oh, we're two jolly good fellows, And we work both day and night. The customer is our sole concern. 62 And the customer's always right! Oh, the customer ! The customer! The customer's always right! (They bow together and carry down the can. ) SCENE III MR. HOGGELDY Oh, Hoggeldy Everything is my name! I've stores from coast to coast. Service is my motto And quality's my boast. I'm always smooth and smiling. Consumers just adore it. I know the way to get their pay And make them love me for it ! (Enter a LADY CONSUMER.) Good morning, Madam? How much would you like to pay me today? —I mean, how much do you really need? LADY CONSUMER We-ell, just a can of soup, I guess. MR. HOGGELDY Well, well, well! Finest quality. Cheapest prices. Tomatoes, potatoes—or how about peas? How're you fixed for your greens ? —It's only you, lady, we're trying to please ! Have a taste of homogenized beans! Something new, maybe, you've got on your mind? Oh, yes, now here—at a loss To ourselves—we are selling today, For only today, this wonderful new Applesauce ! Straight from the dewey orchard This apple comes to you, Ninety-nine, ninety-nine one-hundredths pure, It's fascinating, new, Impossible, tremendous, you Won't think to ask "How much?" It floats, it pours, it one time had The skin you love to touch. It's got a yump, it ain't scratched yet, Knee-action—is it precious! You count this chick before it's hatched, The pause that you refreshes. Is it a honey—how and how! Eventually, then why not now? A value like the U. S. Mint, It oozes out like cream-o'-wheat, , No stoop, no squat, no squint! /. LADY Oh, marvelous! oh, wonderful! Oh, Mr. Hoggledy, how do you do it? MR. HOGGELDY My life, Madam, is spent In sacrifice to your service! (Enter the FARMER, wh,o taps the lady on shoulder.) LADY My brother, Mr. Agri Culture. Aggy, meet Mr. Hoggeldy. FARMER Gla.d to meet you. (He goes to the can.) Ah, applesauce! Ought to be a bargain. Plenty of apples this year. Apples in the orchard, Apples in the air, Apples by the carload— Apples everywhere! MR. HOGGELDY I assure you, Mr. Agri, Times are hard, and apples scarce. It's all that I could do To find an apple good enough To sacrifice for you ! FARMER There's something wrong about all this. Now that I stop to think— MR. HOGGELDY Oh, don't do that, Mr. Agri! 1 beg of you, don't do that! Just buy and buy and buy— LADY There's something wrong about all this. I wish that I just knew . . . MR. HOGGELDY What, what ?—what" s this ? You thinking too? Oh, don't do that, my lady! ,) Don't stop and ponder why! Just pay my price—I'm awfully nice! And buy and buy and buy! LADY All right. I'll take your applesauce. FARMER And I will take some too. Consumers' Cooperation , April, 1939 (Together they take hold of the can, and sing. ) But some day, Mr. Hoggeldy, We'll find out why we do! (They disappear with can.) (Hoggledy spreads out his arms and shh'ers: Brrrrrrr! Up pops the BROKER. ) BROKER What's the matter, Mr. H ? You're looking awfully pale. "^ Don't tell me some new chain-store's come And undercut your sales! HOGGELDY (shivering) : Worse, Mr. Broker, worse! BROKER Good heavens, man, what's wrong? HOGGELDY Those people— Those people— Brrrrrrr!—they're beginning to—to think! BROKER Oh. Hoggledy, what shall we do? (He shivers.) HOGGELDY Oh, Mr. Broker, there's no hope! The racket's up—we're sold ! When folks begin to act on thought, They'll leave us in the cold. They'll build them up a store of their own, They'll run it by themselves, They'll raise what they need Right straight from the seed, And put it on their shelves! (They sing together.) Oh, we were two jolly good fellows, And we worked both day and night. The customer was our sole concern, But the customer's always right. Oh, the customer ! The customer ! The customer's always right! (Drooping slowly, they carry down the can.) THE END. EPILOGUE A play without a moral Is not a play at all, It seems to me an epilogue Is needed by us all. You have observed the farmer's plight— Raises all the apples and never gets a bite. 63 Well, I can state the cause of this And agree that I am right, For under all that's thought or done, And under all that's said Behold—the Profit Motive Rears its ugly head ! (PROFIT MOTIVE rises slowly, and reciter of EPILOGUE pushes him down.) You have seen the poor consumer Doubtless doing all she can To stretch the hard-won wages Of some honest working man. Well—I can state the cause of this And why she never can— Behold! The Profit Motive! (PROFIT MOTIVE appears again and is again pushed down.) BOOK REVIEW COOPERATION AS A WAY OF PEACE—By James P. Warbasse, Harper and Brothers, 1939. Special Edition available through The Co operative League, 167 West 12th Street, 50c. This book carefully explores the relation of the basic principles of the cooperative movement to the problems of war and peace. Beginning with a summary of America's wars which pictures each of them without exception as "unnecessary and demoralizing" Dr. Warbasse relates each of the nine primary principles to the current situation in a manner which shows the way in which they contribute to peace and their op- posites make for war. He then outlines the international outreach of the cooperative move ment, sketches its remarkable world war his tory in keeping lines of communication open and ends the book by discussing the philosophic validity of mutual aid. The words which dose the chapter on cooperation as a moral force will live a long time. "Peace is not an entity to be striven for and won as a prize. The peace the world needs is like the healthy life. It is something that must be lived. Its other name is social healthfulness. We shall have peace when we live healthily in our relations with our fellow men. Every contribution to social justice is an aid to peace. Peace must be de veloped in our living, day by day, in the mar ket place and in the home." What are governments for? According to Dr. Warbasse, their chief function is to per petuate themselves and the economic forces which give them birth. In this process, they inescapably make war. The way to peace there- 64 Well—there is one solution On which our hearts are set : A swift extermination Of this little household pet— The Profit Motive! (Again up and again downed) And you who build the Co-op Have seen at last the need To do business for each other And not for private greed. You will assist to bring about the last triumphant deed— And squash the Profit Motive ! ! ! (PROFIT MOTIVE appears for last time and is slowly crushed out of sight.) fore in the opinion of the author, is to get rid of governments. This is easier than it sounds. The cooperative movement stands ready to sub stitute for the competitive economic order which bids governments to fight its wars a co operative society of mutual aid which needs no such good. He says in a passage which gives the key to the book, "Cooperation is social structure upon an economic foundation. It represents society organized into a way of life. It is from every standpoint different from politi cal organization. This cooperative socio-eco nomic relationship of people grows out of their needs; government arises out of their wickedness. The first supplies their wants; the second restrains vices. Cooperation promotes friendly relations; government creates differ ences. Cooperation guides; government pun ishes." This book requires serious attention. It can not be dismissed as the ramblings of a faddist. The evils which it indicts are so imminent and the remedies so closely at hand that they de mand the careful thought of all whose con tribution to world affairs is more than that of the poor sheep who are shorn one day and slaughtered the next. While some will seek to dismiss it as a current version of philosophical anarchism, it will not be easy to do unless the whole context of today's political trend is ig nored. When government everywhere except in cooperative countries is moving thiough cen tralization towards totalitarianism, when the only way it can offer to save democracy is to invite democracy to commit suicide in the house of its friends, then it is time to move out beyond accepted formulas into the daring and the new. —HAROLD E. FEY, Executive Secretary Fellowship of Reconciliation Consumers' Cooperation À 1 VIEWS Cooperatives and the Law Regarding Fascism E. R. Bower James P. Warbasse Inside the Cooperative Family NEWS National Cooperative Recreation School Cooperatives on the March REVIEWS Medicine for the People The Harvard Report The Government Takes Inventory May 1939 CALENDAR OF COMING NATIONAL EVENTS World's Fair Cooperative Center, New York, Grand Opening, May 30. Eastern Cooperative Wholesale, Annual Meeting, New York, May 30. Conference on Organized Labor and Co operation, Akron, Ohio, June 3-4. Board of Directors, The Cooperative League, Quarterly Meeting, Chicago, June 8. Board of Directors, National Cooperatives, Inc., Quarterly Meeting, Chicago, June 9. Consumer Cooperative Services, Annual Meeting, New York, June 14. Annual Meeting of Society of Cooperative Accountants, Milltown, Wisconsin, June 20 and 21. Cooperative League Publicity and Educa tion Conference, Milltown, Wisconsin, June 22, 23 and 24. National Cooperative Recreation School, Milltown, Wisconsin, June 25 to July 8. World Congress on Education for Democ racy, Teachers College, Columbia Uni versity, New York, August 15-17. Trip to Cooperative Europe, sails from New York in the Motorship Bat orj, July 1. Returns to New York Sept. 3. Tour of Nova Scotia Cooperatives, begins Antigohish, Nova Scotia, August 21, closing September 2. Forthcoming Meetings Not Yet Scheduled National Conference on Consumers' Co operative Medical Services National Conference on Cooperative In surance THE COOPERATIVE LEAGUE 167 West 12th Street, New York City 608 South Dearborn, Chicago DIVISIONS: Auditing Bureau, 167 West 12 St., N. Y. C. Medical Bureau, 5 E. 57 St., N. Y. C. Design Service, 167 West 12 St., N. Y. C. Rochdale Institute, 167 West 12 St., N. Y. C. Clusa Insurance Service, 135 Kent Ave., Brooklyn, N. Y. AFFILIATED REGIONAL COOPERATIVES Name Central Cooperative Wholesale Consumers' Cooperatives Associated Consumers Cooperative Association Cooperative Book Club Cooperative Distributors Cooperative Recreation Service Cooperative Wholesale, Inc. Eastern Cooperative Wholesale Farm Bureau Cooperative Ass'n Address Superior, Wisconsin Amarillo, Texas N. Kansas City, Mo. 118E. 28 St., N.Y. 116E. 16 St., N.Y. Delaware, Ohio 2301 S. Millard, Chicago 135 Kent Ave., Bklyn Columbus, Ohio Publication Cooperative Builder The Producer-Consumer Cooperative Consumer Readers Observer Consumers Defender The Recreation Kit Farm Bureau Mutual Auto Insurance Co. Columbus, Ohio Lansing, Michigan Sr. Paul, Minn. Seattle, Washington Indianapolis, Ind. Minneapolis, Minn. Chicago, 111.. Walla Walln, Wash. Harrisburg, Penn. Indianapolis, Ind. 227 E. 84th St., N. Y. E.C.L. Cooperator Ohio Farm Bureau News Ohio Farm Bureau New.s Michigan Farm News Farmers' Union Herald Grange Cooperative News Hoosier Farmer Midland Cooperator Penn. Co-op Review Farm Bureau Services Farmers' Union Central Exchange Grange Cooperative Wholesale Indiana Farm Bureau Coop. Association Midland Cooperative Wholesale National Cooperatives, Inc. Pacific Supply Cooperative Pennsylvania Farm Bureau Coop. Ass'n United Cooperatives, Inc. Workmen's Mutual Fire Ins. Society DISTRICT LEAGUES Central States Cooperative League 2301 South Millard Ave., Chicago, Illinois Eastern Cooperative League 135 Kent Ave., Brooklyn, N. Y. Northern States Cooperative League Sexton Building, Minneapolis, Minnesota California Co-op Education Ass'n 1676 E. 85 Street, Los Angeles. Cal. Northern California Co-op Council 1715 University Ave., Berkeley, Cal. National Cooperative Women's Guild Box 1000, Superior, Wisconsin CONSUMERS' COOPERATION OFFICIAL NATIONAL JOURNAL OF THE CONSUMERS' COOPERATIVE MOVEMENT PEACE • PLENTY • DEMOCRACY Volume XXV. No. 5 MAY, 1939 Ten Cents COOPERATORS MUST HELP OTHERS REACH RIGHT CONCLUSIONS At the extremes there are two principal kinds of people—the reactionaries and the revolutionaries. The reactionaries stick their heads in the sand and declare that "all is well," or would be if we would only go back to the "good old days," and refuse to open their minds to change. The revolutionaries also stick their heads in the sand and declare that "all is wrong," that a radical revolution of things, with or without actual violence, would bring about the "good new days," and refuse to open their minds to change. In the middle are the cooperators who recognize the worth of the inheritance of the past but also recognize its faults, who desire a better world to live in here on earth but do not believe that the pattern can be worked out by revolutionary changes, who believe in eternal evolution toward perfection but who recognize education and practice as the only true means toward the desired ends. It is probably true that the reactionaries, the revolutionaries and the cooperators are all minority groups today—that the majority of the people are those who sway with the winds of prejudice and propaganda, who blow hot and cold. The story of their lives is like the description which a reviewer uses to summarize a new book "the novel comes to no conclusion." How much cooperators, who have reached con clusions, can do to help reactionaries and revolutionaries to reach the cooperative conclusion may be uncertain. The great field and the great need is to persuade those who have not yet made up their minds to do so as we see the right. That "right" is the simple extension of the democratic principles of liberty and equality to the eco nomic organization of society by education and cooperative organization. An organ to spread the knowledge of the Consumers' Cooperative Movement, whereby the people, in voluntary association, purchase and produce for their own use the things they need. Published monthly by The Cooperative League of the U. S. A., 167 West 12th St., N. Y. City. E. R. Bowen, Editor, Wallace J. Campbell, Associate Editor. Contributing Editors: Editors of Cooperative Journals and Educational Directors of Regional Cooperative Associations. Entered as Second Class Matter, December 19, 1917, at the Post Office at New York, N. Y., under the Act of March 3, 1879. Price $1.00 a year. COOPERATIVES AND THE LAW E. R. Bowen /'~"> OOPERATIVES do not theoretically need \*-J laws to enable them to organize or to operate. They have adopted their own laws in their principles of organization and operation. All cooperatives need is the passage of statutes protecting these prin ciples, which in themselves provide for freedom and justice. What cooperatives have to do principally is to protect them selves from non-cooperative legislation. They are increasingly subject to direct and indirect attack by unwise or unjust enactments. It is for this reason that the Directors of the Cooperative League have voted to proceed with plans to open a Washington Legislative and Information Office. It may prove to be that the Information which the Cooperative Movement will be able to get far more readily by direct con tact with the different Departments of the Government in Washington, as well as from the many national research and educational organizations headquartered there, will be even more valuable to the Movement than the Legislative activities of the office, after it is finally set up. For laws should only be the confirmation of the consensus of the judgment of the people which they have reached after they have had the opportunity to fully inform themselves. An editorial in the Progressive says that the plan to open a Washington office shows that the Consumers' Cooperative Movement has grown up—that it has won a place in national affairs which it must promote and protect through direct na tional representation. In the short space of time since the meeting of the Directors during the lat ter part of March, when the Consumers Cooperative Movement has begun to be more directly active in Washington, it is plainly evident that there are many seri ous matters which require attention. A first report of some of the principal leg islative problems follows: 66 1. Incorporation Many states have laws which were passed under the impetus of the Sapiro wave which provide only for the incor poration of cooperatives among farm pro ducers and do not even conform to the latest and best cooperative practices. In many states there is no satisfactory con sumers cooperative law. Such laws have been introduced in some states and in the District of Columbia, based on the model Consumers' Cooperative Law, and it is vitally necessary that the Movement have a Washington office and a representative active on the job in order to assist in the passage of such state laws wherever nec essary. Whether or not it will also be eventually desirable to press for a nation al incorporation law remains to be seen, but this is within the range of possibili ties. 2. Right to do Business The question of the status of Consum ers Cooperative Wholesales which have urban memberships and handle bitumi nous coal is still to be determined. At present only one of our wholesale mem bers is involved and in due time an ap plication will be made for registration as a wholesale under the National Bitumi- ous Coal Act. We do not yet know how the Commission will interpret the pro\i- sion forbidding wholesales to give re bates. The fact that patronage returns are not rebates will necessarily have to be dis cussed with and accepted by the Com mission. 3. Credits to Cooperatives If the government is to increase its functions as a lending agency, then why should cooperatives not have equal treat ment with private business? Why should rural cooperatives now only have the right to borrow for the purchase of farm supplies and services and not for the pur chase of home supplies and services ? Why Consumers' Cooperation should urban cooperatives not have the same access to credit as rural cooperatives ? These three questions are even more vital to the Consumers' Cooperative Pur chasing Movement than they may seem by these simple statements. They involve two basic economic questions having to do with the eventual financial success of the Movement. The first question is whether it is not more economical for a local cooperative to handle all kinds of food, goods and services desired by its members than for separate organizations to be set up ; the second question is wheth er a local or regional cooperative will not be more successful if it deals with every potential user of the products it handles, whether rural or urban residents, than for it to restrict its membership to only part of the potential patron-members in its trade area. Will cooperatives be able to compete without handling whatever their customers desire in sufficient quan tity to make such handling profitable, and without serving everyone who desires to purchase such commodities? Both are ac cepted practices of private business. No private bank would think of restricting a private business borrower in the prod ucts it handled or the patrons it served; why then should a public bank restrict a cooperative business borrower? If such restriction is allowed to continue, as the present laws provide, will not coopera tives be placed in an unfair and uneco nomic position and be unable to operate on a free competitive basis with private business ? The statement of these problems is suf ficient to convince any cooperator of the absolute necessity of the Movement hav ing its own representative on the ground in Washington to deal with such credit questions. 4. Taxation of Cooperatives Why should there be any differentiation between cooperatives composed of rural or urban members relative to taxation of savings voted to reserves? A cooperative is a cooperative, whoever its membership. May, 1939 There should be no differentiation be tween rural and urban cooperative pur chasing associations as now provided in the revenue law. Continuing such differ entiations will drive deeper the wedge between farmer and worker which laws have introduced into the cooperative movement. Such revenue laws not only hinder the unified growth of the move ment, but also undermine the economic strength of cooperatives by inducing them, in order to save taxes which no coopera tive whether urban or rural should be re quired to pay, to limit their membership to only part of the potential users of the products they handle. Representation in Washington is needed to secure equal exemption from unjust taxation for urban as for rural cooperatives. This will also enable cooperatives to practice without penalty their principle of open member ship, with which the law now interferes. 5. Price-fixing, Price-raising Laws Economic crimes are now being com mitted under the cloak of mis-named "fair-trade" laws. Cooperatives believe in and practice free and fair competition. They object rightfully to private business talking of free competition as the founda tion of a just economic system and then enlisting the support of the government in violating the principle of free compe tition by the passing of laws designed to enable private business to fix prices. Farmers and workers were both blind and unorganized and so failed to prevent the passage of such "fair-trade" laws in 44 States. Now they are starting the fight to repeal such laws and prevent others being passed. The Ohio cooperatives have taken the lead by having introduced a repealer to the law in that State. They are using these significant arguments: that such laws are essentially the limita tion of competition and the writing of monopoly into law; that price-fixing schemes almost invariably mean higher prices to consumers; that not only does legalized price-fixing tend toward monop oly, but that legalized monopoly tends 67 towards Fascism. Cooperatives must act nationally as well as in each state to pre vent such violations of a fundamental purpose of cooperatives which is to lower prices to consumers. 6. Truth and Purity in Products Cooperatives are organized to supply their members with pure products truth fully described. No laws are necessary to require cooperatives to follow these prin ciples. They are a part of the structure of cooperatives. However, cooperatives need legal protection against private business which seeks to violate these principles by innumerable forms of adulteration and deception. Just so long as business is mo tivated by profits for a few stockholders rather than by service for all patron- members, just so long will this evil be with us. Cooperatives not only set an ex ample of purity in products and truth in description for private business to follow, but must also work with those private businesses which want to practice honesty and require others to do so by legislation. 7. Control of Monopolies The Cooperative Movement has asked for an opportunity to appear before the Monopoly Investigation Committee to present its case for the control of monopo lies by the effective yard-stick method, rather than by the legislative prohibition method which has proven futile during the past fifty years of trial. The coopera tives propose to present the facts about the effect in higher quality and lower price which cooperative competition pro duced in the feed, fertilizer and other fields in the United States as well as the results in European countries of the great er development of cooperatives. This pres entation should give the Movement wide publicity and stronger national standing as an effective middle-way for America, and assist in forestalling the possibility of a reenactment of some form of NRA legalization of monopolies. 68 8. Transportation A bill has been introduced in Congress which would vitally affect the interests of cooperatives which are now develop ing cooperative transportation facilities. It would place under the Interstate Com merce Commission the control of all means of transportation and, if enacted, would seem to prevent the ownership by cooperatives of fleets of trucks for general transportation purposes, which is now de veloping successfully. Cooperatives nec essarily must be directly represented in the consideration of such matters. 9. Statistical Information The Cooperative Movement asks of the government equal treatment with private business in the collection of statistical data. The Department of Labor and the Farm Credit Administration have collected statistics by mail for many years. How ever, for such statistics to be complete and accurate in every detail they must also be included in first-hand census re ports. Questions relative to the amount of farm products marketed and the amount of farm supplies purchased, which were included in the agricultural census of 1920, '25 and '30, were omitted from the census of 1935. They should be reincluded and the Cooperative Movement is now actively engaged in endeavoring to per suade those in charge of the forthcoming census to do so. The commercial census should include statistical data on Con sumers' Cooperatives of the same nature as is compiled for the benefit of private business. Since the Consumers' Coopera tive Movement has had significant growth during the depression of the past 10 years, such statistics would be particularly strik ing in comparison with the decline of pri vate business. By having a representative constantly on the job, it should be pos sible to persuade the census officials to give the cooperatives equal treatment in the collection of invaluable statistical data. Consumers' Cooperation 10. Division of Cooperatives There has been a great deal of discus sion relative to the possibility and advis ability of setting up a Division of Coop eratives under some department of the government. A bill has recently been in troduced to that end, with all of which the Consumers' Cooperative Movement has thus far had nothing to do as an or ganized movement. However, if it even tually appears advisable that some such action be taken, then we should naturally have a voice in the final determination. Summary These ten and other matters are the reasons which have led the Board of Di rectors of The Cooperative League to finally reach the decision to open a Legis lative and Information Office in Washing ton as soon as the balance of the funds are available and permanent personnel can be selected. In the meantime the Officers and Directors of the League are them selves starting action by spending as much time in Washington as their other duties will permit. The Harvard Report OPERATING RESULTS OF CONSUMER COOPERATIVES IN THE UNITED STATES IN 1937 SOME two years or more ago The Coop erative League presented to the Har vard Bureau of Business Research a pro posal that they make an independent study of operating costs in the Con sumers' Cooperative Movement. The pro posal was accepted and finances supplied by the Good Will Fund, Inc., the founda tion provided for in the will of the late Edward A. Filene. When the proposal was presented it was stated that the Cooperative Movement desired to know the truth as it might be shown by an independent statistical study, irrespective of what the statistics might develop. The study has been entirely in dependent, to the extent that the Cooper ative Movement has never been advised as to its progress from the time it started and has had no intimation as to its conclusions until receiving the printed report, which in fact was supplied to the newspapers for review even before it was to The Coop erative League. Now we have, for the first time, an au thoritative comparative study of the op erating costs of cooperatives and some comparisons with independent and chain stores. This review will not attempt a full interpretation of the statistics—we will only attempt to condense the figures from the report and to quote briefly from the text accompanying them. Those who May, wish to study the complete report can se cure copies from The Cooperative League by sending in a dollar bill, which is the retail price. Introduction Consumers' Cooperatives are classified by the report in three groups for the pur poses of the study: 1. food-store cooper atives; 2. general-store cooperatives; 3- farm-supply and petroleum cooperatives. The retail volume of Consumers' Cooper atives was estimated to be in 1935: one- half of 1% of all foods and general mer chandise; 2% of all petroleum products; and 23% of all farm supplies. The data for the study was secured from auditors' statements rather than from special re ports from local managers. Cooperative auditors' will be interested in the com ment that "the Bureau received statements for individual societies varying widely in completeness, and perhaps, in general re liability . . . the data from all reports used were transferred to copies of the standard form." The question might well be raised why the reports varied in completeness or reliability or even why they varied in form. Education was included in operat ing expense in the compilation rather than being deducted from savings (profits). "This procedure may have given rise to a slight over-statement of the expense of co operatives as compared with that of pri- 69 vate enterprise," says the report. The ar gument that cooperatives have compar ative advantages as a result of "unpaid, volunteer labor" is disposed of by the re port which says, "It is thought, however, that, once a cooperative is firmly estab lished, the amount of volunteer services received is negligible." Food-Store Cooperatives The statistics cover 42 retail food-store cooperatives. Sixteen were in the New York area, 16 in the Chicago area, 7 in the Superior area and the other 3 were scattered. Volume increased 17%, as compared with 5.1% for independents. "The final net gain of 2.3% on net sales was equivalent to 20.7% on net worth, a gratifying figure." Net worth for cooperatives was 11.1% of net sales, while for chains it was above 20% ; the reverse statement would be that net sales were 9 times net worth for co operatives and 5 times for chains. Both gross margin and expense were smallest in the New York area ; higher in the Chicago area; and highest in the Su perior area. Average volume for the cooperatives was $50,000, which the report says is "ap proximately the figure set by many of the corporate chains as that necessary for com fortable, profitable operation of neighbor hood units" ; and further observes "it ap pears that, under the conditions of 1937, COMPARATIVE BETAIL OPERATING EXPENSES v^* 0. O è u t/^ ià \— z UJ o z UJ c. UJ O 2T »^> Z < u: w »16 CL 0 Ô w Iß vD 116 \f d O Ô >J ^ =â lb.6 \/^ h- z UJ O Z UJ C- IU O Z 11.5 \n O. O Ô VJ ^ zi Food General Farm Stores Stores Suppli a cooperative had to secure average sales of about $4,000 a month, or between $900 and $950 a week, before it could ex pect a fairly secure profit for the year as a whole from merchandising operations alone." Expressing the caution that "the data . . . must not be looked upon as strictly comparable" and describing it as "rather sparse evidence," the report shows "total expense before interest" of the Coopera tives as 16.6% compared with the 16.4% reported by Dun and Bradstreet for inde pendents and 16.2% reported by Harvard for chains. Other comparisons are given, but these seem to the reviewer as the most fairly comparable. As an indication of the possibilities in developing food-store co operatives in the future, we are also show ing on the chart the operating costs in British cooperatives of 12.8%. The general conclusion of the food- store cooperative section would seem to be that cooperative food-stores operate to day at about the same percentage of ex pense as independents and chains; that they have at present the advantage of sav ing for their members an average of 2.3% of net sales and possible undetermined advantages in price and quality; that fu ture additional savings must come from greater retail efficiency and the greater development of wholesaling and manu facturing. General-Store Cooperatives The general-store cooperatives handled groceries, meats, work clothing, dry goods, hardware, china, glassware, feed, etc. The report concludes that "cooperatives may have introduced some economies in retail distribution" after presenting the statistics of cooperative vs. independent stores. The "total expense before interest" of the cooperative general-stores was 11.6%, as compared with 15.6% report ed by Dun and Bradstreet for indepen dents. The net savings (profits) of the gen eral-store cooperatives averaged 3.5% as compared with 2.3% for food-store co operatives or "much more favorable." 70 Consumers' Cooperation May, 1939 The general-store cooperatives included in the report numbered 47, of which 27 were located in the Superior area, 15 in the Omaha and Kansas City area, and the other 5 elsewhere. Farm-Supply and Petroleum Cooperatives No comparisons are made of the results of farm-supply and petroleum coopera tives with independents or chains. The farm-supply reports cover only 17 units. The principal observation made is that "In looking carefully at the common figures in this table, one is struck by the close resemblance which the expense per centages (of farm-supply cooperatives) bear to those for the 47 general stores . . . expense before interest was almost exactly the same." (This similarity is also indi cated by studies of the Farm Credit Ad ministration of farm-supply and general- store cooperatives in Wisconsin. It may be that the possible savings to members in the handling of home-supplies are as great or greater than in the handling of farm- supplies. At least, these statistics can well be studied by cooperative regional and local managers.) An attempt is made to break down the statistics and compare cooperatives with and without filling stations, with indefi nite results. One table covers Combined Farm-Supply stores and Bulk Stations, with and without Filling Stations. The gain of those with Filling Stations was 2.5% larger. On the other hand another table compares only Bulk Stations with and without Filling Stations. In this table the gain of'those with Filling Sta tions was only .1%. Summary: Our own summary would be in general: —that cooperative food-stores can at least compete on equal terms with inde pendents and chains in the matter of ex pense. —that the present advantage of a small percentage of savings may be increased in the future by increased efficiency in re tailing and by the extension of wholesal ing and manufacturing. —that cooperatives may also have pos sible advantages in price and quality. —that cooperative general-stores now have a distinct advantage over indepen dent stores in operating expense. —that the fact that cooperative general- stores operate at the same percentage of expense as farm-supply stores may indi cate the advisability of the Movement's entering more rapidly into home supplies. —that the weight of evidence is in favor of adding filling stations and going after the urban business in petroleum products. Compliments and Criticisms The Consumers' Cooperative Movement is indebted to the Harvard Bureau of Business Research for making this study and to the Good Will Fund for financing it. We believe that it will be accepted as a whole as an unusual study considering the present stage of development of the Movement. The report necessarily could not cover many of the great advantages of the Con sumers' Cooperative Movement which are even more important than the savings re sulting from purchasing-at-cost, such as user-ownership and democratic control. The stability of volume and employment in cooperatives as compared with competi tive business should be determined. The safety of investment in cooperatives due to their low mortality, compared with the discontinuance of private business at the rate of 20% per year, should be studied in future reports. Savings in the initial price to consumers on the same product, or better quality for the same price, offer possibilities of advantage to members of cooperatives, and though more difficult to determine than operating expenses, might well be studied. Irrespective of its shortcomings, which future reports may eliminate, and the many advantages of cooperatives which cannot be covered by statistics, the value of this report is very great for the Con sumers' Cooperative Movement. 71 NATIONAL COOPERATIVE RECREATION SCHOOL THE Fourth Annual National Coopera tive Recreation School will be held in Milltown, Wisconsin, June 26 to July 8. The School, which is sponsored by the Cooperative League, is under the direction of the Cooperative Society for Recrea tional Education. The program is de signed to equip prospective leaders with skill in the use of recreation methods and materials. The staff of the school is composed of recognized authorities in the several fields of creative recreation who have a basic understanding of the importance of recre ation in building the cooperative move ment. Miss Neva L. Boyd, Department of Sociology and Division of Social Work, Northwestern University, will again head the staff. Miss Boyd has been a teacher of recreation and social group work for many years and is the author of numerous collections of folk dances and games. She will be assisted in teaching folk dancing and games by Mrs. Janina Adamczyk and Richard Seaman of Northwestern. Miss Ruth Chorpenning and James Norris, New York, will be in charge of dramatics. Group singing and instrumental playing will be taught by Miss Hazel Powell Stein- feldt and Miss Phyllis Randall of Chi cago. Miss Margaret Gardner will teach puppetry and Miss Lois Landfear, crafts. Miss Boyd will lead the discussion on group leadership and the philosophy of cooperative recreation. It is urged that consumer cooperatives and other groups interested in promoting recreation in rural and urban communi ties select candidates who give promise of serving their own organizations and com munities to attend the school. A majority of the 60 students who attended the school last year were sent by cooperative groups and the training they received has proved invaluable in developing recrea tion in their local societies. Milltown is situated in the lake distria of Wisconsin, sixty-five miles from Min neapolis. Although the town has a popu- 72 lation of only 450 it operates a coopera tive creamery, grain elevator, gasoline sta tion and telephone system and a coopera tive store is being organized. The Milltown Commercial Club has made available the town high school with its classrooms, new auditorium and stage. The Home Economics teacher will pro vide meals and rooms will be engaged in private homes. • Tuition and expenses for the thirteen day period will be $33. The Cooperative Society for Recrea tional Education was formed at the con clusion of the first cooperative recreation institute at Wildwood, Ohio, in 1936. It is operated democratically by the students who attend the training school each year and already in two states the students have gone back to form local chapters or so cieties in order to foster the objectives of the organization. Carl Hutchinson, Ohio Farm Bureau Cooperative Association, is president and Gertrude Emerson, Penn sylvania Farm Bureau Cooperative Asso ciation, is secretary. All inquiries concerning the school should be sent to Frank Shilston, Director, Midland Cooperative .Wholesale, 739 Johnson Street, Minneapolis, Minnesota. The Central States Cooperative League announces a Recreation Leadership Train ing School to be held at Circle Pines Cen ter, Middleville, Michigan, June 25 to July 8. The school, which will offer in struction in recreation leadership in all its forms and actual practice in techniques, will be under the direction of Chester A. Graham. He will be assisted by Lynn Rohrbough, Cooperative Recreation Ser vice; W. W. Kapnick, Musical Director of Circle Pines Center; Naomi Rawn, Margaret Graham, Mrs. Bruce Siddell, and Dr. David Sonquist. Complete infor mation about the Training School and a folder describing Circle Pines Center can be secured from the Central States Coop erative League, 2301 S. Millard Avenue, Chicago. REGARDING FASCISM MY article on fascism in the 1939 Co operative League Year Book has been criticized by cooperators who fear and earnestly oppose fascism, but to whom I have apparently not made my subject dear. It has also been criticized by some who have not read it. This country is threatened with fascism. Let us do all that we can to prevent it. But if it should come, it is my belief that we should have considered its possibili ties and that we should not be caught sur prised, unprepared, nor confused. The Year Book article is not a general discussion of fascism, nor of its develop ment, nor of its wickedness. It is merely an attempt to visualize the cooperative societies in the United States if and when fascism should come. What are our so cieties going to do and what will be their position in the picture if we should have a fascist regime. If we should find ourselves not with the present sort of government and eco nomic system, but with the sort of gov ernment and economic system that pre vails in Italy, what is going to happen to our cooperatives? What is to be their re lation to such a government ? Now is the best time to think about the subject. It sounds very noble for cooperators to say that they are going to fight the govern ment. But we should be more concerned with facts than with sentiments. All that is attempted in the article in question is to face the situation factually rather than J. P. Warbasse emotionally. And to attempt this in a time of propaganda, tension, and animosity is difficult. But there is no use dodging the question nor confusing it with emotional slogans. It should be clearly understood that I am not sympathetic to fascism, that I am sympathetic to trade union organization and everything that makes for democracy. But I do insist upon cooperative neutral ity, so far as the official acts of coopera tive societies are concerned, in every field in which people are divided into special classes and organizations which are not all inclusive. This is emphasized in my "Cooperative Democracy" and in my "Cooperation, a Way of Peace." I have always insisted that the official neutrality of cooperative societies should in no wise interfere with the freedom of the individual to be as unneutral as he pleases in any question, and to be free to ally himself with any other movement that he wishes. Discussion of such subjects is not only profitable to the cooperative movement, but it is necessary if the movement is to have an understanding membership, and if it is to prepare itself to face whatever situation the uncertainties of the future may bring. A supplementary article on this sub ject, for those who want the information, appeared in the COOPERATIVE BUILD ER of May 13, 1939. COMBINE YOUR VACATION AND COOPERATION A Study Tour of the Nora Scotia Cooperatives Thirteen stimulating days, August 21 to September 2, visiting one of the most important adult education and cooperative developments on the North American continent. Total cost, $67.50. A Tour of Cooperative Europe Sixty-four days visiting the cooperative, cultural and historical centers of Denmark, Norway, Sweden, Finland, Scotland, France and Switz erland. July 1 to September 3. Total cost, $675.00. For information write THE COOPERATIVE LEAGUE 167 West 12th Street New York Consumers' Cooperation May, 1939 73 INSIDE THE COOPERATIVE FAMILY THREE statements have been made by different cooperators to the editor re cently, which are in the nature of con structive criticism of the consumers' co operative movement as it has thus far de veloped. All were made with an attitude of apology for offering the suggestions, as the ones making them did not wish to seem to be critical of the movement to which they are contributing their lives. The right kind of "family councils" are, however, greatly beneficial and equally so inside the cooperative family as in fami lies with blood ties. Here are the sugges tions for the consideration of "our fam ily" of cooperative readers: Do Some Cooperative Employees Work Too Hard? The first suggestion was in the form of a question, "What are we going to do about the fact that some cooperative em ployees are working themselves into early graves?" There is no easy answer. If it is true that they are, it is not, we believe, so much because they are over-driven by the members, as because cooperative em ployees are so desirous of making every effort to solve our feverish economic dis eases of poverty, unemployment and ten ancy by evolutionary means before these diseases cause a national or international revolution. But concerned as cooperative employees generally are and should be to contribute every last ounce of effort to ward the great cause which they represent, the real question is, how they can so live and work to contribute the most. They cannot "give" continuously without "giv ing out." There are, we believe, three primary answers. The first is that cooperative em ployees, who give up all hope of ever be coming rich when they accept cooperative employment, should be compensated in addition to their salaries with the peace- of-mind certainty that they will be ade quately cared for in sickness or old age. The American cooperative movement has 74 given little attention to this necessity which is only primary justice. European cooperatives generally have adopted sick ness and retirement benefit plans. They do not depend upon the inadequate pro tection of the State. Copies of such plans have been secured and are available for the American Movement to pattern after. In general they provide for sickness bene fits covering a six-months period and for retirement at the age of sixty-five at half pay. It should be added that such retire ment provisions not only insure the greater peace-of-mind of cooperative em ployees during their working years and justice during their retirement years, but likewise solve the question of automati cally discontinuing employment at an av erage age when physical and mental pow ers may begin to decline. The second answer is that working hours should be shortened, particularly for those cooperative employees who are called upon by their occupations to spend many additional hours in night work. Rest is an absolute essential at any age for recuperation of mental and physical strength. One of our largest and most successful regional cooperative associa tions has adopted an eight-hour five-day working week for its employees. Its success would seem to indicate that such working hours are not impracticable. Less working-days every week would en able cooperative employees to accomplish more during the regular hours they worked and to study and contribute more of value in after-hours effort. Most co operative employees work so many hours at their regular occupations that they do not have the time for the constant reading and thinking necessary to make the most progress. Initiative and ideas are the val uable by-product of such reading and thinking. They cut short and sometimes completely eliminate routine operations, which otherwise may be carried on in definitely, and thus increase efficiency. A third answer is to observe a day Consumers' Cooperation of rest. Many cooperative meetings are scheduled for the day of rest. Other cooperatives never schedule such a meet ing. Yet there is no evidence but that they are not equally as successful as oth ers which do. And it goes without say ing that the members and employees are more refreshed and energetic for the fol lowing week's work. Not only are men tal study and physical relaxation necessary for the recuperation of one's energies, but quiet and meditation are equally neces sary for the growth of one's spirit. Co- operators do not live "by bread alone." Cooperation is a relationship between hu man beings and such relationships must develop in the spiritual as well as the mental and physical spheres of life. There are others, but these are some possible answers to the question asked us as to how to keep cooperative employees out of early graves: peace-of-mind through sickness and retirement benefits; shorter working hours and fewer working days which will permit more mental study and other cooperative activities as well as physical recuperation; the growth of the spirit through the quiet and meditation of a "day of rest and gladness." Regional Leaders' Attitude Toward National Organization Another question asked us by a coop erator was, why some regional coop erative leaders do not seem to take the same attitude toward the national organ ization of the cooperative 'movement as they urge their local cooperative mem bers to take toward their own regional organizations. This cooperator went on to explain that regional cooperative leaders rightly urged their local cooperative asso ciations to support the activities of their regional association 100%: in ade quately financing and staffing their pub licity, educational and legislative ac tivities; in purchasing all their require ments through their regional ; and in sup plying sufficient finances through stock subscriptions, reserves and loans. He then -, 1939 asked whether all regional cooperative leaders follow out in dealing with mat ters of national cooperative organization the advice which they strongly urge their local cooperative associations to follow in dealing with their regionals. Our only answer was to state our im plicit belief that in time all regional co operative leaders will "follow through" and practice fully in all their dealings with the national cooperative organiza tions the same things which they urge their local cooperatives to do in dealing with their regional organizations. It is not only logical that they should do so but to their benefit as well. And logic plus benefits will surely bring every right ac tion to pass. Time is necessary to develop strong national cooperative organizations, just as time was required to develop strong regional cooperative organizations. Statistics show that the great upturn in regional cooperative organization devel opment began in 1926; the great upturn in national cooperative organization de velopment is only recently under way. "You cannot go it alone" applies as strongly to regional cooperatives as to local cooperatives. For their own best in terests regional cooperatives must feder ate into and develop strong national co operatives, just as local cooperatives must federate into and develop strong regional cooperatives. The only question is when? Since it will be done eventually, it would seem to be the heighth of wisdom and the responsibility of every regional cooperative leader to answer affirmatively the question asked by one cooperator "Why not now?" We must act in every way to strengthen the national coopera tive organizations and enable the Con sumers' Cooperative Movement to take its rightful place in national influence in building economic democracy and preserv ing religious, educational and political de mocracy while there is yet time, and be- for it is too late as it has become for lack of national action in other countries. 75 n What Should Be Discussed Publicly and Privately? A cooperator, who has attended many meetings of directors as well as meetings of members and delegates, made the ob servation to us that the most important matters are not discussed publicly in the meetings but in "off-the-record" personal conversations. Who would not agree that this is true? The question is to what ex tent should important matters be publicly discussed in a democratic cooperative or ganization. Is there an inhibition which has been inherited from the lack of pub lic discussion in competitive economic or ganizations, or is it well that important matters should be discussed personally rather than publicly? To what extent should feelings be protected from public discussion of cooperators' activities? What is really necessary in order to do a good job of collective thinking and to achieve a reasonable degree of unanimity in democratic decision? If the results of one cooperative compare unfavorably with those of another under similar circum stances, should not that fact be openly dis cussed and the group endeavor as a whole to determine the real reasons? Yet sud comparisons, which are possible among cooperatives because the books are open, while they are not possible among com petitive organizations, are seldom made in a public way and in a spirit of emula tion. To what extent should the manage ment and directors be expected by the members or delegates to publicly acknowl edge their -own errors, if the results are unfavorable, rather than passing over any such situations by incomplete state ments ? We do not know who can answer this cooperator's observations and the implied questions. So we leave them to our read ers to think through. We would only suggest that the word "open" may prove to be one of the most important words in the cooperative dictionary, and that the principle of open membership and open books may be found equally applicable to open discussion and open decisions. MEDICINE FOR THE PEOPLE FARM CO-OPS SHOW HUGE GAINS STATISTICS OF FARMERS' MARKETING AND PUR CHASING COOPERATIVES, 1937-38, MAR KETING SEASON — Miscellaneous Report No. 18, Farm Credit Administration, Washington, D. C, Free. This report covers the record of various com modity marketing cooperatives such as dairy, fruit, grain, livestock, etc. as well as the total number of associations listed, estimated mem bership and estimated business of farmers' marketing and purchasing cooperatives. Our readers will be particularly interested in the cooperative purchasing statistics. The ten year record of farmers' purchasing cooperatives is shown by the chart. Associations listed in creased from 1205 to 2600 or 115 per cent. Estimated members increased from 398,000 to 900,000 or 126 per cent. Estimated business increased from $128,000,000 to $350,000,000 or 173 per cent. It is interesting to note that the big jump in associations and volume started in 1934, when the Movement began to organize nationally to a greater degree. Whether there is any connection between the two facts can not, of course, be determined. 76 TEN YEAR. RECORD OF 35° FARMERS' PURCHASING COOPERATIVES ÎTftTISTICS FROM FftHM CREDIT ADMINISTRATION. WAfHlNeTON, o.e. 900,000 Z6 i] 05 30 398 000 US 000 )00 19Z7-26 57-36 27-26 57-5O 27-28 57-36 ASSOCIATIONS ESTIMATED ESTIMATED LISTED MEMBERS BUSINESS CICOO DOLLARS) A DOCTOR FOR THE PEOPLE—By Michael A. Shadid, M.D., Vanguard Press, New York, 1939, 227 pages, $2.50. Available from The Cooperative League. This is an extraordinary book. It presents two unusual features. First, it is the experience of a doctor who came up from poverty to afflu ence, who lived close to the sufferings of the people, and who became possessed of a great social idea. And second, it tells of the creation of the first cooperative hospital in this country. Here is history that burns itself into the consciousness of the reader, and will touch the sensitive nerve of social justice of every live mind that comes in contact with it. A number of biographical stories by doctors have recently appeared and have been widely read They depend largely on fiction to make them attractive. But Dr. Shadid's book is the naked truth—unembellished. It is utterly thrill ing. Its facts are impressive. I know Dr. Shadid He is the noblest work of God—an honest man. He is honest to the point of naivete in his simple directness. And an en lightened medical profession of the distant future will rise up to proclaim him its bene factor. After recounting the story of his boyhood on the slopes of Mt. Lebanon in Syria, he goes on with the narrative of education and of medi cal work. He practiced in Oklahoma. His eyes were opened to the need of medical reform when on one day, as a young assistant, he helped a doctor perform unnecessary major op erations on three patients, for the sake of the fees- and all three patients died. He asks the question: "What kind of justice could you ex pect from our courts if the remuneration ot the judges were dependent upon their decisions, if 'guilty' brought a five hundred dollar fee while 'innocent' meant only five dollars?" This book gives the history of the founding and the growth of the Community Hospital of Elk City, Oklahoma, and the opposition to it. Here is revealed the sordidness in the medi cal profession. It progresses through the bus iness greed of the incompetent little doctors of the community up to the business cupidity of the American Medical Association. Facts and figures are put on record. It is obvious to the reader that the offense which brought down upon Dr. Shadid the wrath of organized medi cine was the fact that he had set up an associa tion and a hospital owned by the patients, do ing better work than the other doctors and hos pitals of the neighborhood, saving the patients money, and making preventive medicine possi ble as never before. TWO REVIEWS BY Dr. James P. Warbasse This book should be read by every doctor with a social conscience, and by every doctor without one. People concerned for the improve ment of the public health will read it. And to those who enjoy narrative, that is more thrill ing than fiction, this book offers both entertain ment and enlightenment. Consumers' Cooperation May, 1939 AMERICAN MEDICINE MOBILIZES — By James Rorty, W. W. Norton Company, New York,' 1939, 350 pages, $3, may be pur chased thru The Cooperative League. This book of 350 pages tells the dramatic story of the possibilities of medical service, of its need by the people, of the failure of the old individualistic method of medical practice ade quately to supply the need, of the resistance of organized medicine against things socially pro gressive, and of the public's reaction to this sad drama. Mr. Rorty has done a good piece of research and has effectively presented his material. This book possesses the merit that it shows the methods of the American Medical Associa^ tion Here is a trade union with 110,000 mem bers ruled by a small coterie of successful busi ness doctors, who place publicity and adminis trative authority largely in the hands of a shrewd business agent who runs away with the show and makes a pretty killing for him self Thus Mr. Rorty describes the undignified methods of what might be a dignified profes sion and shows the tawdry spear point by which it presents itself to the public. As a result ot the social backwardness of the A.M.A. and its opposition to cooperative medicine, its men tion before an assembly of well read laymen today excited a reaction of derision. The chapter in this book on Medical Coop eratives ties in with the rest of the text. It is an interesting story. From the standpoint of the patients, who are trying to get more and better medical service, who want to make use of preventive medicine to protect their health, the opposition of the AJVt.A. to coopérative medicine is tragic. From the standpoint of the average informed doctor, the attitude of this powerful trade union should be both humiliat ing and discouraging. But since the propaganda carried on within the organization keeps the membership misinformed as to the nature and methods of cooperative medicine, the knowl edge of this medical subject in the United States is largely among the lay public while the ignorance of it remains the special posses sion of the medical profession. 77 The Government Takes Inventory WHAT THE CO-OPS ARE DOING CONSUMER COOPERATIVES ON THE MARCH "CONSUMERS' COOPERATION IN THE UNITED STATES, 1936"—Edited by Florence E. Parker, U.S. Bureau of Labor Statistics, Washington, D. C. 206 pages, 25c. Avail able from The Cooperative League. The U.S. Bureau of Labor Statistics of the Department of Labor has just published its fifth report on Consumers' Cooperation in the United States and finds more consumer coop eratives than ever before, that they represent "not only a more extensive but a sounder de velopment than at any time since the Bureau started to follow the movement in 1918" and that the "business practices of local associations have undergone a noteworthy change for the better." The Bureau made the study in cooperation with the Farm Credit Administration, the Rural Electrification Administration, the Con sumers Counsel of the AAA and the Consumers Project of the Department of Labor. The re port, based on operations for 1936, shows 4,100 consumer cooperatives in the field of retail dis tribution and service with 830,000 members and a business of $188,000,000 that year; 5,000 consumer cooperative telephone associa tions with 330,000 members which reported a gross income of $5,485,000; 5,440 cooperative credit unions with 1,200,000 members and loans to members totaling $112,135,000; and 1,800 co-op insurance associations with 6,800,- 000 members and a gross premium income of $103,875,000. These statistics cover only part of the con sumer cooperatives in rural areas. The Farm Credit Administration recently reported 2,600 consumer cooperative purchasing associations in farm areas with approximately 900,000 members and a total business in the 1937-38 season of $350,000,000 while cooperative pur chasing by marketing cooperatives boosted that total to $440,000,000. The Bureau of Labor. Statistics' study cov ered co-ops handling groceries, bakery goods, meats, shoes, clothing, furniture, hardware, paints, farm supplies, radios, refrigerators, elec tricity and electrical appliances, petroleum products, tires and other auto accessories; pro viding insurance on sickness, death, fire, theft, hail and accident; credit, housing, telephone, medical and burial services; books and recrea tion facilities. 78 Three-quarters of the co-op stores were in towns of 5,000 population or less and "al though the Cooperators formed only 0.05 per cent of the population in the cities of a million or over they formed about 11 per cent in places of 1,000 to 5,000, nearly 24 per cent in places of 500 to 1,000 and 47 per cent in places of less than 500 inhabitants. In sharp contrast, practically all the housing associations, credit unions, medical associations, restaurants and bakeries are in industrial centers. That cities are not invulnerable to cooperative attack, however, is attested by the growing number of Amer ican cities in which there are associations of some size that are apparently in successful operation," the publication points out. The Bureau of Labor Statistics' study shows that nearly 45 per cent of the co-ops report ing have been formed since the beginning of the depression in 1929- The average member ship of all retail co-ops is 257. Seven retail distributive co-ops had sales in 1936 of over a million dollars each although the average an nual sales per co-op was $81,058. More than 70 per cent of the cooperatives reporting were able to make savings in 1936 and the rates of patronage dividends averaged from 2 to 6 per cent for store associations and 5-6 to 10-11 per cent for gas and oil co-ops. Averaging yearly savings, however, it was found that the total savings per family in stores and oil associations were almost the same. The Bureau's field studies disclosed that "the independent, isolated cooperative associations were in general far below the level of the federated associations in business efficiency, size, volume, financial stability and operating results. . . . Among the increasingly large number of associations which have realized the advantages of federation and have utilized to the full the wholesaling, auditing and other facilities available, failures are becoming few er and fewer." "Today," the report continues, "more asso ciations are formed only after extended educa tional work than was formerly the case. Reli ance on practical facts has to a large extent supplanted the unthinking enthusiasm and exaggerated claims that characterized the early period. . . . Fewer than 200 associations were affiliated with the national body—The Coop erative League—in 1920. In 1936 the League had some 1500 member associations and there were about 1900 associations which were mem bers of the various regional associations." W.J.C. '"THIS has been a month of great co- J- operative progress. ' Consumers Cooperative Association, with headquarters at North Kansas City, Missouri, has signed a contract for the construction of the first cooperative oil refinery in the United States. The plant will be built at Phillipsburg, Kansas, this summer at a cost—with a 70-mile pipe line—of $700,000. The new refinery will serve co-ops in Kansas, Colorado and part of Nebraska and will supply about 40 per cent of the petroleum products handled by C.C.A. It would take fifty cooperative refineries of the same capacity to supply all the gas and oil cooperatives in the United States. Eighteen communities in Minnesota and Wisconsin have completed drives for the establishment of cooperative grocery stores to be operated with the new gro cery division of Midland Cooperative Wholesale as CO-OP STORES, Inc. The wholesale-retail features of the program are patterned after the large French co operative societies and bring consumer- members the advantages of large scale centralized operation while preserving consumer ownership and control.- The Farm Bureau Mutual Auto Insur ance Company, a cooperative established twelve years ago, reported premium in come of $6,000,000 in 1938, placing it squarely in position as fifth largest mutual auto insurance company in the country. Cooperatives in New York and vicinity, in cooperation with several of the regional associations in other sections of the coun try completed plans for a CO-OP CEN TER for World's Fair visitors who will be in New York this summer. Located at 136 East 44th Street, one half bock east of Grand Central Station, it will be a mecca for out of town cooperators and an information center for consumers. Three hundred eduators, churchmen, social workers, labor and cooperative lead ers from ten southern states met at Green ville, S. C., for the First Southern Con- Consumers' Cooperation May, 1939 ference on Cooperation. Taking as its theme, "Educating People to Help Them selves," the conference marked the open ing of a drive to bring cooperation to the South as a partial answer to America's Economic Problem Number One. Eleven rural electric co-ops in Minne sota, Wisconsin and Iowa made plans to erect a generating plant to serve the needs of their 10,000 members when private profit utilities refused to sell them power at a reasonable wholesale rate. Central Co-op Wholesale, Superior, Wisconsin, at its 22nd annual meeting, April 17 and 18, approved the hiring of 7 regional educational directors; OK'd the board of directors' recommendation to pay a 1.4 per cent patronge dividend to retail stores on the wholesale's $3,045,- 000 business last year and approved a printing plant for the Cooperative Builder. The Central States Cooperative League and The Coopérative Wholesale, both of Chicago, moved a step closer together when the delegates at the annual meetings of the two organizations April 22-24 set up a coordination committee and in structed it to bring in a plan for amalga mation the first of the year. The Pennsylvania Farm Bureau Coop erative Association boosted its volume to $1,279,000 in 1938—35 per cent ahead of its record sales a year ago. Twelve hundred delegates and guests packed the Hershey theatre for the annual meeting. The State of North Dakota has created a Division of Cooperatives as part of the Department of Agriculture and Labor to "serve as a source of cooperation and in formation in the establishment and/or maintenance of cooperatives generally." Patterning their work after the very successful program of adult education and cooperative organization in Nova Scotia, the Conference of Southern Mountain Workers have set up an extension pro gram with headquarters at Berea, Ken tucky, to train leaders and organize coop eratives in the mountain area. 79 Order these BOOKS on COOPERATION • Co-ops in Action Alaune. V. S. : Manual for Co-op Directors Bergengren, Eoy. Cuna Emerges. Credit union Book ...................................... Carr-Saunders. Florence & Peers: Con sumers' Cooperation in Great Britain (1938) .................................................................. Childs, Marquis : Sweden — The Middle Way ...................................................................... Cowling, Ellis ; Cooperatives in America (1938) Special Edition .................................. Daniels. John: Cooperation—An Ameri can Way (1938) Cooperative Edition Elliott, Sydney, English Cooperatives .... Failor, Clarence: Careers in Consumer Cooperation, special edition ...................... Fowler, Bertram B. : The Lord Helps Those, Special Edition ................................ Grimley, O. B. ; The New Norway ............ GJores, Axel : Cooperation in Sweden ........ Howe, Frederic C. : Denmark—the Co operative Way (1936) .................................. l.OU 1.50 4.00 2.50 i.on 1.50 3.00 .25 1.00 l.oli 1.23 Mercer. T. W. : Towards the Cooperative Commonwealth ................................................ Odlie, Thorsten : Finland. A Nation of Co- operators. (Cloth 1.50). Paper ................ Parker, Florence : Consumer Cooperation in the U.S., 1936. Bureau of-Labor Sta tistics .................................................................... Randall & Daggett : Consumers Coopera tive Adventures, Special .............................. Eedfern. Percy: John T. W. Mitchell. (1924) .................................................................. Redfern, Percy: New History of the Co operative Wholesale Society, 1938 .......... Schmalz, Carl: Operating Eesults Con sumer Cooperatives 1937. Harvard Study Shadid, Dr. M. ; Principles of Cooperative Medicine ............................................................ • Interpretations The Annals for May 1937. 23 articles on Consumers Cooperation. Special price Baker, Jacob : Cooperative Enterprise .... Kallen. Horace: The Decline and Else of the Consumer .................................................. Gerne. Anders : Cooperative Ideals and Problems (1937) (Cloth 1.25) Paper .... Potter, B. : Cooperative Movement in Great Britain (1891) .................................... Eussell. George (A. E.) The National Being .................................................................. Walter, Karl: Charles Gide and Coopera tion ..................................................................... •Warbasse, J. P.: Cooperation Peace, Special Edition ......... -A Way of Warbasse. J. P. : Cooperative Democracy (1936). Cooperative Edition ....................'. Warbasse. J. P. : The Doctor and the Public (1935) cooperative health pro tection ................................................................ 80 2.5« 2.50 1.011 .25 .50 1.10 3.00 1.00 .50 1.00 2.00 .75 1.10 1.75 2.50 .50 1.50 5.00 Plays The Spider Web, a 3 act play, by Ellis Cowling .............................................................. .25 The Answer, a 3 act play, by Ellis Cowling .20 Two One Act Plays, Ellis Cowling .............. .IS Posters Organize Cooperatives, 26"x38" Green, 5 for SI ............................. Cooperative Principles, 19"x28" Blue, 5 for $1 ................................. Cooperative Ownership, 19"x28" Miilherry, 5 for SI ....................... .2(1 .2« .20 Films "The Lord Helps Those — Who Help Bach Other," a new 3 reel, 16 mm. film of the Nova Scotia adult education and cooperative pro gram, produced by the Harmon Foundation. Excellent photography. $4.50 per day, $2.25 additional showings, $13.50 per week. "A Il»us<- Without a Landlord," a new 2V2 reel, 16 mm. silent fllm on the Amalgamated Cooperative Houses in New York City. Eent- al $3.00 per showing, $1.50 each additional showing, $10.00 per week. "Clasping; lliiiuls," 16 mm. silent, two reel film, showing how cooperation is taught in the schools of France. Won the Grand Prize at the International Exposition, Paris, 1937. "When Mankind is Willing," a 16 mm. silent three-reel fllm, with English titles, of coop erative stores, wholesales and factories in France. "A Trip to Cooperative Nova Scotia," 3 reels, 16 mm. silent with titles, based on the 1937 Co-op tour. Rental: Each of three above $3 per day, $1.50 for each additional showing or S10 per week. Fire Insurance ON YOUR FURNITURE SAFE - ECONOMICAL - COOPERATIVE Workmen's Mutual 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. Consumers' Cooperation Defending Democracy E. R. Bower Midland Goes From Gasoline to Groceries Davis Douthit Labor and Cooperative Leaders Meet at Akron James Myers Ohio's Rural Leaders Plan Education for Democracy Eastern Co-op Wholesale: Ten Years of Cooperation Gilman Calkins George Tichenor Cooperation Moves South Report of Greenville Conference June 1939 NATIONAL MAGA7INE FOR COOPERATIVE LEADERS, CALENDAR OF COMING EVENTS Annual Meeting, National Society of Co operative Accountants, Milltown, Wis consin, June 20-21. Cooperative League Publicity and Educa tion Conference, Milltown, Wisconsin, June 22-24. National Cooperative Recreation School, Milltown, Wisconsin, June 26 to July 8. Dinner for Neal Beaton, president of the Scottish Co-op Wholesale, World's Fair Co-op Center, New York, June 28. Annual Congress, Cooperative Union of Canada, Regina, Saska., June 29-30. Mexican Conference on Cooperatives and Economic Problems, Torreon, Coahuila, Mexico, July 1 to 6. Circle Pines Center, near Hasting, Michi gan, series of summer institutes: Recreation Leadership Training, June 25 to JulyS Youth Institute, July 9-22 Co-op Educators, July 23 to Aug. 5 Managers and Directors, Aug. 6-19 Co-op Medicine, Insurance, Journal ism, Aug. 20-26 Co-op Finance, Personnel, Housing, Guilds, Aug. 27 to Sept. 2 Educational Conference, Sept. 2-4. California State-wide Conference on Con sumer Cooperation, Camp Sierra, Cali fornia, July 15-22. First Annual Conference, Association of Medical Cooperatives, Hotel Astor, New York City, July 20-22. Eastern Cooperative League, Summer In stitute, Mass. State College, Amherst, Mass., July 30 to August 12. World Congress on Education for Democ racy, Teachers College, Columbia Uni versity, New York, August 15-17. Tour of Nova Scotia Cooperatives, opens with Rural and Industrial Conference at Antigonish, Aug. 21-23 and con tinues with a tour of Eastern Nova Scotia and Cape Breton to Sept. 2. THE COOPERATIVE LEAGUE 167 West 12th Street, New York Citv 608 South Dearborn, Chicago DIVISIONS: Auditing Bureau, 167 West 12 St., N. Y. C. Medical Bureau, 5 E. 57 St., N. Y. C. Design Service, 167 West 12 St., N. Y. C. Rochdale Institute, 167 West 12 St., N. Y. C. Clusa Insutance Service, 135 Kent Ave., Brooklyn, N. Y. AFFILIATED REGIONAL COOPERATIVES Name Central Cooperative Wholesale Consumers' Cooperatives Associated Consumers Cooperative Association Cooperative Book Club Cooperative Distributors Cooperative Recreation Service Cooperative Wholesale, Inc. Eastern Cooperative Wholesale Farm Bureau Cooperative Ass'n Address Superior, Wisconsin Amarillo, Texas N. Kansas City, Mo. 118 E. 28 St., N. Y. 116E. l6St., N.Y. Delaware, Ohio 2301 S. Millard, Chicago 135 Kent Ave., Bklyn Columbus, Ohio Publication Cooperative Builder The Producer-Consumer Cooperative Consumer Readers Observer Consumers Defender The Recreation Kit Farm Bureau Mutual Auto Insurance Co. Columbus, Ohio Lansing, Michigan St. Paul, Minn. Seattle, Washington Indianapolis, Ind. Minneapolis, Minn. Chicago, 111. Walla Walla, Wash. Harrisburg, Penn. Indianapolis, Ind. 227 E. 84th St., N. Y. E.C.L. Cooperator Ohio Farm Bureau News Ohio Farm Bureau News Michigan Farm News Farmers' Union Herald Grange Cooperative News Hoosier Farmer Midland Cooperator Perm. Co-op Review Farm Bureau Services Farmers' Union Central Exchange Grange Cooperative Wholesale Indiana Farm Bureau Coop. Association Midland Cooperative Wholesale National Coopetatives, Inc. Pacific Supply Cooperative Pennsylvania Farm Bureau Coop. Ass'n United Cooperatives, Inc. Workmen's Mutual Fire Ins. Society DISTRICT LEAGUES Central States Cooperative League 2301 South Millard Ave., Chicago, Illinois Eastern Cooperative League 135 Kent Ave., Brooklyn, N. Y. Northern States Cooperative League Sexton Building, Minneapolis, Minnesota California Co-op Education Ass'n 1676 E. 85 Street, Los Angeles, Cal. Northern California Co-op Council 1715 University Ave., Berkeley, Cal. National Cooperative Women's Guild Box 1000, Superior, Wisconsin CONSUMERS' COOPERATION OFFICIAL NATIONAL JOURNAL OF THE CONSUMERS' COOPERATIVE MOVEMENT PEACE-PLENTY-DEMOCRACY Volume XXV. No. 6 JUNE, 1939 Ten Cents ANOTHER EVENTFUL MONTH Minneapolis, Kansas City, Columbus, Greenville, Akron and New York City made co-op headlines in May and early June. At Minneapolis, Midland Cooperative Wholesale officially launched the first American cooperative-chain grocery program as it extended its service to con sumers from gasoline to groceries. The story of the much discussed Midland Plan is told by Davis Douthit in this issue. At North Kansas City, the Consumers Cooperative Association let contracts for the construction of the first cooperative refinery in the United States— a logical step from gasoline distribution to processing. At Columbus, 400 leaders in the field of rural adult education met to map out a program of "Education for Democracy." In Akron, 173 representatives of organi2ed labor, both A. F. of L. and C.I.O., met with 'leaders of the consumers cooperative movement to discuss "Organi2ed Labor and Consumer Cooperation." At Greenville, South Carolina, 300 educators, churchmen, labor and cooperative leaders from 10 Southern states opened what may be a concerted drive for coopera tive organization in the south. These three historic conferences are described later in these pages by James Myers, Gilman Calkins and E. R. Bowen. In New York City, Memorial Day, Eastern Cooperative Wholesale, built largely by and for urban consumers, celebrated its tenth anniversary as it moved into the million dollar class of co-op wholesales. George Tichenor tells the story on page 93. Cooperative education and organization are moving on. An organ to spread the knowledge of the Consumers' Cooperative Movement, whereby the people, in voluntary association, purchase and produce for their own use the tilings they need. Published monthly by The Cooperative League of the U. S. A., 167 West 12th St., N. Y. City. E. R. Bowen, Editor, Wallace J. Campbell, Associate Editor. Contributing Editors: Editors of Cooperative Journals and Educational Directors of Regional Cooperative Associations. Entered as Second Class Matter, December 19, 1917, at the Post Of ice at New York, N. Y., under the Act of March 3, 1879. Price $1.00 a year. DEFENDING DEMOCRACY AGAIN we are hearing appeals to ex ert "righteous force" in a "holy" war. They sound like echoes of a quarter of a century ago. There is a deep obliga tion upon each one of us to think through to the end, to speak our convictions and to act in accordance therewith. The obliga tion is particularly heavy upon those who suffered losses in their own immediate families from the last war and who might be called upon to do so again. Face the Facts What, after all, is the real difference between the imperialistic designs of the past on the part of England and France and the fascist desires of the present on the part of Germany and Italy? What is the real difference between England and France continuing to hold protectorates over other nations and Germany and Italy seeking to establish such protectorates? Look at a current map of Africa, particu larly a colored one for clarity, if you can find it, showing the protectorates estab lished by England and France over the various countries on that continent. Then ask yourself, why do not England and France set the example to Germany and Italy by giving up their protectorates ? No one should be deceived. "It was," as Senator Borah wrote to students in St. Olaf College of Northfield, Minnesota, "the democracies of Europe which wrote the secret treaties by which all the spoils were divided even before the war closed. It was the democracies of Europe which wrote the Versailles treaty, not a peace treaty, but a spoils treaty. It was the de mocracies which for 20-odd years refused to make any changes in the Versailles treaty looking toward peace." Is the pres ent struggle in Europe really over ide ologies of democracy vs. dictatorship, or is it not actually another of the periodical ly recurring struggles of European eco nomic imperialism for control of markets ? 82 E. R. Bowen Canon Charles E. Raven of England, who has been touring America, is reported editorially by the Christian Century to have informed a Chicago audience that "in sending aid to Great Britain and France . .. America is not placing her vast resources behind the democracies but is helping maintain the policies of the world's two most unrepentant imperial isms." If the United States entered a future war to win, it would probably have to join with Russia as well as Great Britain and France. Do we want to fight to pro mote Russian Communism as well as Brit ish and French Imperialism? If Russia goes to war it will be to promote Com munism; if Britain and France go to war it will be to promote Imperialism; if Germany and Italy go to war it will be to promote Fascism. In other words, all of the nations act in what they conceive to be their own national interest. What have we to do with promoting any one of these three political-economic ideologies? The real democracies of Europe such as Switzerland and Scandinavia kept out of the last war. If the United States wants to promote democracy, these are the nations whose policies we should support. And their policies were and are today to "keep out" of the struggle between other ideologies. Americans should study this through and see if these are not the true facts. National Executive Attitude The President opened an "over there" verbal attack by his "quarantine the ag gressor nations" speech. The natural ques tion was raised "who would do the quaran tining," for someone would have to do it. He followed it by his message to Con gress suggesting "methods short of war, but stronger and more effective than mere words." Yet, as Ernest L. Meyer, in the New York Post says, "When people today soberly argue that throwing our financial resources behind foreign powers will not commit us to war, all one can reply is: in heaven's name, turn back the pages of history but twenty short years, and if you cannot read, then weep." The war of words applied to "over here" started with the declaration by the President that the United States would never "stand idly by" if Canada were in vaded. Then, in his Pan-American Day address, he proposed "matching force with force" to defend the American peace. One cannot but remember President Wil son's expression about force, "force to the utmost, force without stint or limit, the righteous and triumphant force," and wonder if lasting peace is an end to be achieved by the means of force. President Wilson's appeal to "save de mocracy" is now superseded by President Roosevelt's appeal to "save religion." But if democracy cannot be saved by war, as America should have learned, then how can religion be saved by war ? The editor of the Christian Century, Dr. Charles Clayton Morrison, declares, "here, we do not hesitate to say, is the most misleading appeal made to the American people by a chief executive in the history of the re public ... it should be utterly and in stantly rejected." He characterizes it as an appeal "to paralyze men's rational pro cesses" designed "to carry his program of limitless armament spending through Congress." A political "battle royal" is staged over the question of $50,000,000 more or less for "relief" which is finally voted down by the Senate on the same day when it is reported than an additional $285,- 000,000 will be asked for "defense" which "will be rushed through the House and Senate without -delay." Yet it is a question if "relief" is not our greatest "defense." Consumers' Cooperation June 1939 National Legislative Program Three questions stand out supreme in the various bills now before Congress having to do with the question of war. The first is the various neutrality bills. The present law prevents sales of arms, ammunition and implements of war to either side when a state of war is declared by the President. The Nye-Bone-Clark bill proposes to strengthen this law by also giving Congress, as well as the Pres ident, power to find that a state of war exists. The Thomas bill would weaken the law by giving the President power, with the approval of Congress, to apply the law to only one side in a foreign war. The Pittman bill would permit both sides in a war to purchase war materials including arms on a cash and carry basis. The ques tion before every American citizen today is, what do you want Congress to do about neutrality? You should keep in mind that "cash" is a largely fictitious method of payment today, unless it results in trad ing food, goods and services for other food, goods and services. Transfer of gold as cash is of no particular value to the United States today. Furthermore you should remember that trading in war ma terials was a potent factor leading to America's entrance into the last war. Our armies followed our sales of arms. Some one must shoot the guns and throw the bombs. Cash trading was soon followed by credit trading and then by loans, after which Ambassador Page urged that we declare war in order to pre vent a financial collapse, which we did. Do you want to make money out of such bloody traffic, even if it did not later in volve us ? But we cannot have both profits and peace, even if we so desired. Senator Borah declares "The mothers of this coun try will find that there is no practical dif ference between furnishing arms and other fighting instruments and furnishing boys. They will inevitably come together in the end." Have you a flesh and blood son whom you are willing to have buried in a foreign 83 land in exchange for sterile gold to be buried in the Kentucky hills ? If not, what are you going to do about it ? The second question relates to the mat ter of declaring war. Do you think that our forefathers did or did not make a mistake in transferring to Congress the power to declare war? Do you want to take this power back into your own hands ? If you feel that this power of life or death is too precious to be delegated to anyone but yourself, then you will sup port the Ludlow-LaFollette war-referen dum bill. Chief Justice Hughes said in his address to Congress on its 150th birth day, "We are here not as masters but as servants ... to attest our loyalty to the commands and restrictions laid down by our sovereign, the people of the United States." Is this a matter where you wish to act directly as a sovereign, or to dele gate your sovereignty, as in the past? The third question relates to war profits, if war does come. Senator Bone and 49 other Senators have introduced a bill to tax the profits out of war. This bill does not involve fastening a war dictatorship on the country as did the May bill. What do you want to do about the question of profits ? Who should get the profits from war ? It is for you to help your representa tives determine how they should vote. Of course it may not make much difference who does get the profits, for the time be ing, in a war of poison gas and high ex plosives. Such a war would probably end in almost universal destruction and result in revolutions which would change the status-quo in a vital manner. Don'ts and Do's The "don'ts" boil down, simply to two, if we really want peace. Don't furnish money, munitions, or men to others to fight with. Don't incite others to fight by calling names, for physical wars always 84 follow verbal wars. The "do's" also boil down simply to two, if we really want peace. Develop cooperatives and all the other forms of economic organization which will solve our domestic questions of poverty, unem ployment and tenancy and thus enable America to become an example of true economic democracy as well as political, educational and religious democracy. Sup port the calling of a world conference and the sharing of resources by the "have" nations with the "have-nots" as well as the adjustment of racial and other differences. These "dont's" and "do's," make up a program that is neither individualist nor collectivist. It is not antagonistic. It is constructive. It proposes action for peace and the prevention of war. It is not America's primary business what flag flies over a European, African or Asiatic nation. It is not America's pri mary business whether the people choose to be ruled by a commissar, fuehrer, duce, king, or president. America's greatest his torian, Charles A. Beard, says, "The busi ness of preventing German and Italian domination in Europe is the business of the powers immediately and directly in terested, and they have the men, money and materials to do the work, if that is what they really want to accomplish." Our primary duty is to put our unem ployed army at work manufacturing use ful consumption products, not producing useless war materials or fighting other peoples' wars. These are the opinions of one troubled and involved American, who believes that these matters are the vital concern of all earnest citizens, and especially those who as cooperative consumers are zealously striving for a higher standard of human living, and, consequently, a better world in which to live. MIDLAND GOES FROM GASOLINE TO GROCERIES ' I "HE Consumer Cooperative movement -»• in territory served by Midland Coop erative Wholesale officially and finally be- became of age Friday, May 5, and went places. It went from gasoline to groceries. First stores are expected to open by the end of June. The movement in Midland territory "put on long pants" in a history-making meeting at the Midland plant in Minne apolis in the presence of some 125 co- operators—farmers and city people—who knew what they wanted and why. Carloads of delegates from 18 would- be co-op store communities began ar riving at the Midland offices in the early morning. They came from Wheaton, Clinton, Donnelly, Morris and Monte video in western Minnesota; from Onamia, Hinckley, Mora, Milaca and Rush City north of Minneapolis; from Osceola, Amery and Milltown in west ern Wisconsin; from Whitewater, Bur lington, Neenah, Greendale and Center Valley in eastern Wisconsin; and from Minneapolis' twin, St. Paul. Mud, Dust and Hard Times Can't Stop Cooperation A spokesman from each community took the floor, told the audience—which included the Midland board of directors —of his community's particular struggle to sign up enough shareholders and to get enough money together. The story in every case was much the same: bad weather, mud, dust, hard times, wild rumors, opposition, but also hard work, sacrifice, grit, patience, and finally — we're over the top, we're ready to go, we can't hold 'em back much longer. Altogether, the reports showed that in 15 communities (not including three in Wisconsin just starting — Burlington, Whitewater, Milltown) 3,685 families had subscribed for one or more $15 Consumers' Cooperation June, 1939 Davis Douthit shares of stock, an average of 246 fami lies to a store. A total of $48,100 capital was collected (average of $3,206 a store), of which about $16,000 is in loans to the local cooperatives from the Consumer Distribution Corporation. In every community, however, the local co- operators have invested cash at least equal to the amount of the note and further more, they have individually signed notes for the balance due on their shares of stock. The reports concluded, the delegates next adopted a resolution urging the Midland board to act now, before it was too late, on the question of going ahead. An advisory committee, composed of one person from each store community, then met with the Midland board and presented their case in detail. The board recognized the demand for cooperative grocery stores by giving those co-op store delegates—from 18 Minnesota and Wisconsin communities—the "Full speed ahead!" signal on a federated, "pay-as- you-enter" grocery program in which the local store is the retail department, and the grocery division of Midland is the wholesale department, of one and the same organization — CO-OP STORES, INC. A Pay-As-You-Go Program This grocery enterprise, in which one consumer buys groceries with the power of many consumers, and one co-op store buys with the power of many co-op stores, will entirely pay its own way. It expects no financial help whatever from any other Midland department. Cooperators in every community have raised among themselves the funds nec essary to establish their local grocery AND to pay for their share of the financ ing of their own wholesale department. 85 It is, indeed, the first time in the history of cooperation in the Northwest that lo cal cooperatives have provided in ad vance the money needed to establish their own retail and wholesale departments; the first time, in other words, that a "pay- as-you-enter" rule has been followed. The decision by the Midland board to go from gasoline to groceries may well turn out to be one of the most significant actions in the development of American cooperatives. It marks, of course, a definite realization by rural people that their household consumer interests are fully as important as their vocational consumer interests to protect. But it does more than that. It pushes the button on some entirely new machinery with which to build the cooperative movement, for this grocery program is something new under the cooperative sun. It com bines the proved advantages of coopera tive buying and selling with the proved advantages of modern chain store or ganization. It proposes to get, as a prod uct of this combination, one of the most powerful weapons yet devised for the use of the ordinary man-in-the-street, or farmer-in-the-dell consumer. This project is not a departure from the orthodox, time-tested Rochdale prin ciples of cooperation, under which con sumer cooperatives from 1844 to the present day have operated successfully. But it does seek to apply those principles to the running of a consumers' business based, not on the happy-go-lucky, hit- or-miss methods of the 19th century, but instead on efficient, merchandising meth ods of today. Volume Buying Plus Democratic Control The Midland store program is de signed to accomplish two major ob jectives: OBJECTIVE No. 1—to obtain for Mrs. John Consumer all the price economies and quality benefits which result from an efficient, centralized, volume buying, 86 grocery organization; OBJECTIVE No. 2—to insure the demo cratic nature of that organization by plac ing its ultimate control in the hands of Mrs. John Consumer. To achieve Objective No. 1, these things are necessary, building from the bottom 'up: Item 1—At least 200 families in at least 15 communities who want a co-op store ; Item 2—At least $3,000 invested in each community in non-speculative, non assessable shares worth $15 each. Item 3—A retail store in each of those communities ; Item 4—A wholesale department owned collectively by those stores; Item 5—A centralized system of or ganization and management able to carry out efficiently, economically and speedily the wishes of Mrs. John Consumer. Add up these items and you have CO OP STORES, INC., a federation of many consumers buying as one consumer, a federation of many co-ops as one co-op. Combining Wholesale and Retail Operations But note this fact! It is a vertical as well as a horizontal cooperative, for it not only unites the retail co-ops as part of the same organization; it also makes the wholesale co-op a part of that same oiganization. When you speak of CO OP STORES, INC., OF MORA, or CO OP STORES, INC. OF OSCEOLA, you are speaking of a completely integrated co-op unit which performs for the con sumers who own it both retail and whole sale functions. The Midland Cooperative Wholesale's grocery department is the wholesale arm and the store in Mora or Osceola is the retail arm. The consumer in Mora or Osceola, in other words, gets all the savings and benefits resulting from ownership of his and her retail store PLUS those result ing from ownership of his and her own wholesale. Because of this concentrated whole sale-retail set-up, when Mrs. Consumer pays $15 for a share of co-op store stock in her community, $10 of it goes to equip and stock the retail and $5 of it goes to finance the wholesale depart ment. In the same way, the combined wholesale arid retail earnings of CO-OP STORES, INC., will be credited one- third to the wholesale and two-thirds to the retail, although all earnings, whole sale and retail, will belong to Mrs. Con sumer. Each retail will, of course, have different amounts available for patronage refunds to its members, for its net earn ings will depend upon its own volume of business and the degree of efficiency of its management. An agreement calling for central man agement of the entire set-up, entered into by Midland and the governing board of each retail store, provides an addi tional means of strengthening this co-op union and infusing even more efficiency into it. This agreement means, in effect, that the local board of directors, instead of hiring a man to manage the retail store, hires its own central organization to do the job, and ehe manager himself is hired jointly by the central organization and the local retail board. The manager is subject to discharge either centrally or upon the request of the local board. The agreement in no way whatever af fects the usual self-governing rights and powers of the local members and their board. And since retail and wholesale are parrs of the same whole, the retail stores are supplied with all their needs through their own wholesale department. Centralization of the reins of manage ment is nothing new in the grocery busi ness, of course. Indeed it is through econ omies realized in just such a centralization that chain stores have gone so far in domi nating the food industry. It seems high time, then, for cooperators to catch up with the times and reap the benefits of cen tralization themselves. Consumers' Cooperation June 1939 Advantages of the New Program Here are a few of the advantages which may be expected to benefit the ultimate boss, Mrs. Consumer: 1. Systematized management, making for economy and efficiency through uni form merchandising; 2. Carload purchasing power, lower ing the cost of goods; 3. Standardized modern machine ac counting, meaning complete monthly comparative records telling where each store has been and where it is going when there is still time to do something about it ; 4. Effective joint display and advertis ing program, with costs spread thin; 5. Trained experienced specialsts in a highly technical, highly competitive busi ness; costs spread thin here, too; 6. Quality control through uniform grading and labeling and laboratory tests (when you buy by grade you don't buy blindfold) ; 7. Continuous, aggressive educational aids in "knowing your groceries" and "knowing your cooperation" ; 8. Special training for local managers; 9. Elimination of credit and traveling salesmen costs; 10. Chain store prices because of vol ume buying and efficient merchandising and management. Now for the achievement of Objective No. 2—democratic control. The Midland program calls for these things: Item 1—Open membership; any con sumer, town or country, may become a member by purchasing a share of stock; Item 2—One member, one vote; each member gets one vote, but no more, in any matter which is brought by him or someone else before any official meeting of his co-op; Item 3—A local board of directors elected by the members and responsible to them for the operation of their co-op; Item 4—A local delegate or delegates to the annual meeting of the member 87 associations of Midland Cooperative Wholesale at Minneapolis; Item 5—A board of directors of Mid land that is elected by all the local dele gates from all member associations, the board being responsible to those dele gates for operating their wholesale; Item 6—An advisory committee com posed of one representative from each lo cal store co-op which meets with the Midland board at various intervals and acts as a consumer barometer. Now add these items together, shake well and you have democracy in action. Apply the spark of centralized manage ment, and you have an organization equipped to do battle for the consumer with the toughest of modern competitors. Years of Planning This "many-co-ops-as-one" program is no "jerry-built" structure thrown togeth er over night. Its construction has, on the contrary, taken the better part of two years. The urgent necessity for consumer co operatives to go from gasoline into gro ceries has long been realized by far- sighted American cooperative leaders; first, because gas and oil margins are getting smaller and smaller; secondly, be cause groceries are the largest single item in any family's budget—it does the far mer no good to sell a bushel of wheat for a dollar and then buy it back as breakfast food for $6; thirdly, because a grocery is the one thing on earth that will bring the entire family into the co operative movement; and fourthly, be cause a grocery serves better than any thing else as a stepping stone into other cooperative fields. Granting, however, that the step from gasoline to groceries had to be taken if the cooperative movement was ever to amount to much, the question was, "How?" The last hundred years were lit tered with the bones of dead co-op stores, stores with poor management, stores with old-fashioned merchandising methods, stores with poor bookkeeping systems, 88 stores which gave too much credit, and isolated stores trying to "go it alone" with insufficient buying power. It was, certainly, a discouraging spec tacle, and one not calculated to inspire further attempts along that line, especial ly in this day of the powerful chain and its efficient, large scale merchandising methods. Then, gradually, there evolved in the mind of E. G. Cort, Midland's general manager, the conception of a grocery pro gram in which local co-op stores could do as the chains do—buy and sell to gether at wholesale and retail as a unit— and then do as the chains do not do—re turn all the benefits to the consumer- owners. It was a simple idea, but it seemed, also, like a very good one. Other leading cooperators in this country, thought so too, and so did the more experienced leaders of English, Scottish, Swedish, Fin nish and Swiss cooperatives to whom the program was explained. The next question was, "What does it take to put such a program into effect?" And the answer was that it demanded (1) an experienced and competent mer chandiser who knew his wholesale and retail groceries, from artichokes to zwei- back, and it demanded (2) an informed cooperative membership who not only would realize the need for co-op stores but who would work and act together to satisfy that need. An Able Technician For a Big Job One day in the spring of 1937, the first requirement walked into Mr. Cort's office. It was Charles I. Cook, who had been successively a grower, manufacturer, wholesaler and large scale chain operator, but who, strangely enough, had been thinking along almost exactly the same lines as Mr. Cort in working out a plan to turn his business over to his customers. The two men got together, and now Mr. Cook is in charge of the technical end of this newest thing in grocery mer chandising—operation of co-op stores owned by consumers as a federated wholesale-retail unit. The filling of the second requirement, however, was not so easy. This require ment could not walk into any office. It could not be found all ready-made. Nor could it be forced down the throats of people who did not want to swallow it. Yet it was absolutely necessary for the people themselves to want their own co op stores before the "many-co-ops-as- one" program stood a ghost of a show to succeed. Building a Working Membership So there began in the winter of 1937- 38 in various communities where suc cessful oil cooperatives existed, a series of educational meetings called Neighbor Nights. Neighbors met together in their homes, studied over their economic prob lems and, on the basis of what they found out, kept on getting together to decide what, if anything, they ought to do about it. In those communities where the ma jority of the people decided that a co-op store was their next job, they set to work to get that store. They kept on holding meetings, they formed neighborhood Co op Clubs to carry on where the Neighbor Nights left off, they organized store com mittees, they elected boards of directors, they incorporated, and they started out on that longest, hardest task of all, the collecting of the necessary capital. But the second and last requirement had been fulfilled, for the people in more than 15 communities really wanted co-op stores, and they were determined to have them. It was only a question of time until they got them. Snow, dust, mud, hard times and op position might delay the store landslide a bit; they could no more stop it than King Canute could stop the tide. The summer of 1938 passed, and the winter of 1938-39. Interest steadily mount ed. St. Paul people joined their country cousins in demanding their own store. Two hundred and seventy-five local com- mitteemen combed their communities for subscribers and for the $3,000 capital required for each store. Finally, with the advent of spring, the store workers saw their two-year goal was within reach, and they put everything they had into a final plunge to the finish line. The Stores Are Coming Special editions of the MIDLAND COOPERATOR containing only store material were sent to the co-op grocery communities, and the progress of the capi tal collection campaign in each com munity was shown twice a month on a page-wide "store building." The building kept getting blacker and blacker as the dark blocks indicating "capital collected" were piled on, and finally, with the May 10th issue, which went to all readers of the COOPERA TOR, the "store building" was, for all practical purposes, completed. So, ends the story of the birth of CO OP STORES, INC. But now begins the story of the life of CO-OP STORES, INC. DEAR READER: You can help us make Con sumers' Cooperation a better maga zine. Renew your own subscription promptly. Send subscriptions: for your friends, the libraries that serve your community, a lending library for your co-op. Arrange for your cooperative to send Consumers' Cooperation regu larly to every member of your board of directors. Your magazine has to carry its own costs. More subscriptions will provide funds to make Consumers' Cooperation a larger and more val uable "magazine for cooperative leaders." —The Editors Consumers' Cooperation June, 1939 89 Leaders From Ten States Launch Education Drive COOPERATION MOVES SOUTH THE general expression of the nearly three hundred individuals from ten Southern States who attended the Con ference on Cooperation held at Green ville, S. C. on May 18-20 was that it was "one of the most significant conferences ever held in the South." For three days leaders and members of churches, schools, government, farm cooperatives, labor unions and other organizations discussed the subject of "Educating People to Help Themselves." The Conference was arranged by The Greenville County Council for Com munity Development, The University of North Carolina Extension Division and a Sponsoring Committee of Fifty. The Committee on the Church and Coopera tives of the Federal Council of Churches and The General Education Board were cooperating organizations. Opening the Conference the executive secretary of The Cooperative League, stated as a keynote that, "if the South is America's Economic Problem Number One, adult education and cooperative or ganization are the Number One answer," and then described the programs of adult education and cooperative purchasing and marketing in various democratic countries of Europe. The development of "Cooperation in the Midwest" where hundreds of millions of dollars of business are done cooper atively was offered by Murray D. Lincoln, executive secretary of the Ohio Farm Bureau Cooperatives, as proof that "people have within their own hands the tools with which to fashion their own destinies if they will only use them." Twelve million dollars worth of farm supplies have been purchased by the mem bers of the Farmers Cooperative Exchange of Raleigh, N. C., said M. G. Mann, general manager. 90 The featured speaker of the Confer ence was Rev. J. Nelson MacDonald of Nova Scotia who told of the outstanding development of study clubs which has resulted in the organization of seven hundred credit unions, cooperative stores, fish, lobster,. poultry, livestock, dairy and other cooperative marketing associations in the Maritime Provinces. His descrip tion was illustrated by the film, "The Lord Helps Those—Who Help Each Other" taken in Nova Scotia by the Harmon Foundation. "If cooperation comes out of neces sity, the South is about ready to launch a cooperative program," said Arthur Raper, research and field secretary of the Com mission on Interracial Cooperation. A panel discussion on credit unions was led by C. R. Orchard, director Credit Union Section, Farm Credit Administra- ton. Dr. Kingsley Roberts, medical direc tor, Bureau of Cooperative Medicine, dis cussed the necessity and presented illus trations of the development of "Coopera tives for Health." A summary of the discussions of the Conference presented by Walter J. Math- erly, dean of the College of Business Ad ministration of the University of Florida, was approved by the Conference. It in cluded recommendations for the prepara tion of a directory of local cooperatives already existing in the South, the develop ment of courses on cooperation in the schools and adult education groups, the organization of credit unions, buying clubs and other forms of cooperatives, and the appointment of the Executive Com mittee of the Conference as a Continua tion Committee for the setting up of a permanent organization. Active in the organization and credited with the success of the Conference were Howard W. Odum, University of North Carolina, chairman; Walter J. Matherly, University of Florida, vice-chairman; R. M. Grumman, University of North Caro lina, secretary; C. B. Loomis, Greenville County Council, treasurer, who consti tuted the executive committee with E. R. Alexander, State Department of Education of South Carolina; Lee M. Brooks, Uni versity of North Carolina; T. M. Camp bell, Tuskegee Institute, Alabama; and James Myers, Industrial Secretary, Federal Council of Churches, New York City. LABOR AND COOPERATIVE LEADERS MEET AT AKRON ONE hundred and seventy-three dele gates from A. F. of L. and C.I.O. unions and cooperatives in Ohio attended the two-day Institute on Organized Labor and Consumer Cooperatives sponsored by the Summit County Cooperative Council and the Committee on Organized Labor and Cooperatives of the Cooperative League of the U.S.A., June 3-4 at Akron, Ohio. The delegates represented 17 dif ferent types of unions, both A. F. of L. and C.I.O. The Institute was held in the A. F. of L. Labor Temple. Ted F. Silvey, Secretary and Treasurer of the Ohio Industrial Council and Chris Jorgensen, President of the Central Trades and Labor Council, of Racine, Wisconsin, spoke on "Why Organized Labor Needs Cooperatives," each reading the official resolutions on consumer co operatives by the C.I.O. and A. F. of L. respectively. Mr. Silvey described cases where unions had won wage increases but prices in their cities had risen as much or more. "There are important issues," he said, "which cannot be included in union contracts. We must help control prices by sharing in the ownership and operation of cooperatives. "I believe also that organized labor in the cities and organized farmers in the country can best get together on the com mon economic platform of consumers co operation," Mr. Silvey declared. Mr. Jorgensen declared that "We now have sufficient resolutions favoring coop- Consumers' Cooperation June> 1939 James Myers eratives but the problem is to get union members throughout America informed on the subject and actually engaged in the cooperative movement." Mr. Murray Lincoln, Executive Secre tary of Ohio Farm Bureau Cooperative Association, described the basic principles and the whole range of consumers coop eration. Mr. Lincoln expressed apprecia tion of the increasing number of confer ences where labor and farmers could get together for friendly discussion and de velop new understanding of each other. He brought out frankly some of the prob lems in relationships but declared that "Half of the farm problem is found in the city and half of the city workers' problem is found in the country. We must solve the problem of mass purchasing power so as to absorb the full products of both farm and factory." He deplored the tendency of all groups to look to Congress to solve all their problems in stead of solving them themselves, which he declared "can best be done through consumers cooperation with both farmers and city workers participating." Mr. Harold Schröder, past president of the Ohio Credit Union League in the absence of Miss Louise McCarren, be cause of illness, explained the need and actual operation of "baby banks" and how to "build with your own money." He called attention to the increasing trend of organizing credit unions among labor unions, farmers and other independent groups. 91 "The Lord Helps Those . . . Who Help Each Other," the motion picture of Nova Scotia, was shown, accompanied by a running explanation by L. F. Warbing- ton, Educational Director of the Ohio Farm Bureau Cooperative Association, who then directed a demonstration of cooperative democratic discussion. The conference broke up in small groups for this purpose. Rev. James Myers, speaking on the "Ideals and Practices of the Labor and Cooperative Movements," pointed out that "both movements are founded upon the basic principle of democracy." He stated that in addition to building a system of economic democracy it will be neces sary to develop "cooperative individuals" in order to create efficiency and success even in the cooperative movement. Two sessions of the Institute were de voted to technical discussion of methods of recruiting interest in cooperatives and business problems of operation with the participation of representatives of coop erative gas stations, stores, buying clubs, and cooperative health study groups. A session was also devoted to discus sion of trade area organization with Clar ence Wolf, member of the Board of Di rectors of Central States Cooperative Wholesale, and Emerson Kemsies, sec retary of the Northern Ohio Cooperative Association. Members of cooperatives and buying clubs from the following places were pres ent. These groups are composed largely or in part of members of labor unions: Akron, Cleveland, Dover, Kent, Warren, New Philadelphia, Columbus, Cuyahoga Falls, Willoughby and Lakewood, Ohio, and New Kensington, Pennsylvania. Womens Guilds of the Akron and other cooperatives were active in pro moting and conducting the Institute. Herbert Katt, manager of the Racine Cooperative described the beginnings of 92 the movement in Racine which "started from nothing" five years ago and now does a business of over $200,000 a year, operating a grocery store, five gas stations, bulk plant, coal yard, credit union and other services. Some 85% of its members are also members of labor unions, both A. F. of L. and C.I.O. All employees of the cooperative belong to their respective unions with union wages and work ing conditions. Mr. Katt declared that "There are no short cuts to building a co operative—-it's a lot of hard work. You've got to spend enough time in educating in dividuals so thoroughly that they stay converted." Mr. Katt paid a tribute to the Midland Cooperative Wholesale for its assistance. The Racine cooperative is now fifth in gas station sales in the city, starting from scratch four years ago. "I'm interested in changing the system of dis tribution in this country in order to as sure an economy of plenty and abolish unemployment. It can be done if enough people understand and get into the co operative movement. I believe trade unions are absolutely necessary but con sumer buying power is an equally pow erful instrument for changing conditions for the welfare of working people." Mr. Perry Taylor, manager of the Group Health Association, Washington, D. C. described the development of co operative medicine in that city, covering 5,000 men, women and children of fami lies of government employees. He de scribed the many problems involved, but showed the increasing development of the cooperative in spite of many obstacles. The Group Health Ass'n operates a beau tiful clinic with the latest equipment. It emphasizes preventive medicine as well as cure. It employs ten doctors, seven nurses, laboratory technicians and drug gists. The Good Will Fund is assisting in the project. It was voted unanimously by the Insti tute to recommend that conferences with farmers and labor participating should be held throughout the state. OHIO RURAL LEADERS PLAN "EDUCATION FOR DEMOCRACY1 Gilman Calkins, Assistant Editor, Ohio Farm Bureau News POUR hundred representatives of uni- •*• versity extension departments, rural churches, adult education and agricultural organizations in the state met in Colum bus May 24 at the Ohio Rural Leaders Conference to discuss practical programs of "Education for Democracy." A unique feature of the conference was the series of discussion groups set up dur ing the day to apply the methods of adult education in solving the problems pre sented to the conference. The discussion groups, after several hours of considera tion, pointed to the need to create ma chinery for cooperative and democratic action to make it possible for the rural people to solve their own problems. "De mocracy," the groups declared, "must ex tend into every avenue of human activity to be most fruitful." It was generally agreed that "there cannot be a proper ap plication of democracy in all avenues of human activity until there is a better dis tribution of the proceeds of our joint labor." The discussion groups agreed that pro ducer cooperatives alone are not enough ; that they must be supplemented by the establishment and operation of consumer cooperatives; and that to accomplish the greatest results, rural workers and city workers must understand each other and strive for more democracy in all relation ships with each other. The Rev. J. D. Nelson MacDonald, minister at Baddeck Forks, Nova Scotia, and one of the members of the extension staff of St. Francis Xavier University which has taken the leadership in adult education and cooperative organization in Nova Scotia, described the methods used in drawing a quarter of a million people in the Maritime Provinces into the seven hundred cooperatives there. He placed great emphasis on the need for the ex tension of cooperative services to meet all the needs of the people particularly thru the organization of cooperative stores handling foodstuffs meeting the basic needs of every family. Murray D. Lincoln, secretary of the Ohio Farm Bureau cooperatives, wound up the conference with an address en titled "Our Challenge" during which he declared: "Farmers and labor union mem bers and ministers and teachers and ex tension agents must sit down together around the table and work out their com mon problems together. If they don't, other forces and interests will destroy what democracy we have today." TEN YEARS OF COOPERATION: EASTERN CO-OP WHOLESALE George Tichenor, Editor of the Eastern Cooperator ULAIN citizens from 12 states met in *• New York May 30 to shape policies for their own "Big Business" which is expected to have a sales volume of one million dollars this year. At this tenth annual meeting of the Eastern Coopera tive Wholesale, L. E. Woodcock, mana ger, reported that sales jumped from Consumers' Cooperation June, 1939 $533,000 in 1937 to $717,000 in 1938 and that a sales quota is being met which is 40% higher than last year. Three hundred and fifty delegates and visitors from 110 member cooperatives were told that the increase in their busi ness last year required the tripling of warehouse space for the New York of- 93 fice, and a move for the Boston office to quarters twice its former size. Mr. Woodcock's report drew attention to the work of the testing kitchen, the first ever operated by a cooperative whole sale. In the seven months this housewife's laboratory has operated, research has been conducted and tests made on 1,225 dif ferent items, to determine quality in vari ous price brackets. Dr. Hartley Cross, of Springfield Col lege, economist and member of the board of directors of the Wholesale, in the prin cipal address, laid economic ills in a large measure to "an economy of scarcity" which, he said, worked at cross-purposes to the needs of mankind. "We might all agree," he said, "that it is desirable that everyone should be well-fed and clothed and that quality should be the best ob tainable, and at the least cost. But this is diametrically opposed to business meth ods which seek profits out of scarcity and deliberately produce inferior merchandise to hasten replacement." He urged changes based on a "courageous facing of facts," that competition be replaced by coopera tion and that mankind "live to help others live" in a new world. The following new directors were elected to serve two years: A. N. Rivers, Maynard, Mass.; C. Alien Beckwith, Hempstead, L. I. ; E. Stanley Grant, East- on, Penna. ; and William Blaisdell, Wash ington, D. C. The meeting unanimously adopted a resolution declaring that to be effective as a democratic economic organization built on the common denominator of con sumer interests, "Our cooperatives must be protected against being used as either battle grounds or weapons in other con flicts, political, religious, social, economic or personal." Other resolutions urged fur ther development of the testing kitchen and labeling program in the interest of consumers, and a publicity campaign for adequate financing of the wholesale's program. BOOK REVIEWS "EDUCATION THROUGH RECREATION"— L. P. Jacks, Harper and Brothers, 155 pages, $1.50. Available thru The Cooperative League. To all those who feel that recreation is just a "fill'er in" of the time we are not working, eating or sleeping, Dr. Jacks' book will be a real challenge. As the title suggests, he believes that recreation is a vitalizing element in the process of edu cation. The discovery of the educational possibilities of the play side of life may be counted one of the greatest discoveries of the present day, he declares. Educators, and recreational leaders all over the coun try are just beginning to see the possibili ties underlying this discovery. Mr. Jacks believes that it will lead to the develop ment of more creative human beings. "Play, recreation, leisure—are the names of a great opportunity for awakening self-activity, the dormant creativeness of human beings, which other influences and 94 other circumstances of our times are un happily tending to suppress," he states. Cooperators will be interested in his comment that "Man the worker and man the player are not two men, but one; so that if you train him for his work by one method and his play by another, you will find that you are not training him at all but dividing him against himself." Too often we are doing just that in the coop erative movement—in our co-ops we are training people in the operation of non- competitive businesses, and then turning them loose to seek their recreation in the highly competitive system. Dr. Jacks' chapters on the "Community in Recreation" and "Democracy and Rec reation" will prove to be especially stimu lating. In fact, the entire book, which is quite short, should be on the reading list of every person who is working, in one way or another, for the development of the cooperative idea. Consumers' Cooperation THE NEW HISTORY OF THE C.W.S.—By Percy Redfern. Cooperative Wholesale Society, Eng land, 1938. 624 pages. Can be secured from The Cooperative "League, 167 W. 12th Street, New York City,"for $3.00. Percy Redfern is much more of an historio grapher than George Holyoake who has always been regarded as the historian of cooperation. Redfern has an understanding of Cooperation which Holyoake never possessed. Holyoake's historic writing runs into all sorts of by-paths which have no connection with the subject. Redfern keeps to the point. When Redfern brought out the fifty year's history of the C.W.S. in 1913, he produced a masterpiece. Now, after seventy-five years of C.W.S. pro gress, this New History appears. This book goes back as far as 1760. Its first part reviews the beginnings of the C.W.S. and presents much new material. The important facts presented are those of the past twenty-five years. Free access to the C.W.S. records has made this history fully documented and au thentic. This period covers the story of the "food ships" of the C.W.S. that won the dockers' strike in 1914. The C.W.S. during the World War is graphically recorded. Here are present ed facts which illustrate the part played by the largest business in Great Britain, which sup plied the people's needs at a time when profit business was taking advantage of every oppor tunity to profiteer at the expense of the con suming public. Economists and students of po litical economy may well study this history. This history tells the story of the continuous expansion of the C.W.S. into the field of pro duction and its movement back to the sources of raw materials. Here is a business which be gan with nothing, and in 1938 had a turnover of $600,000,000, over 60,000 employees, a banking department with deposits amounting to $550,000,000 and some 130 different manu factories, some of which are the largest in the Empire, and all of this owned and controlled by the consumers of its products and services. Mr. Redfern has written a magnificent his tory, which serves at the same time as his valedictory to cooperative service. As was said of a great Roman, it may be said of Percy Red- fern: "He deserves well of the Republic." j. P. W. CAREERS IN CONSUMER CO-OPERATION — By Clarence W. Failor; Science Research Associates, 48 pp. Co-op Edition, 25c. Available from The Cooperative League. This booklet is a condensation of a more exhaustive study to be p'ublished later this year under the title "Consumer Co-operatives and Their Workers." June, 1939 It consists of nine chapters, the first two of which deal with generalities and the next six with the main subject of the booklet ("The Cooperatives and Their Workers"). The last chapter gives a summary of the findings in the survey, and the author's conclusions. While the booklet does not bring out any thing startlingly new—most of its findings have been known before to many active cooperators in a general way—its summarizations and con clusions should be of interest to cooperators in the United States. In one of these conclusions, Mr. Failor points out that while the respective duties of the cooperative workers are in the main the same as those of similar workers in private enterprise, the cooperative employees render a unique and additional type of service—that of educating the public and the consumer-members in cooperative principles and practices. He also concludes that workers in consumer coopera tives differ from private enterprise employees more in interests and ideals than in abilities. Several other interesting conclusions are made, but space forbids their mention here. We welcome this valuable addition to our still meager and so far rather generalized co operative literature. —V. S. ALANNE TO SEE OURSELVES AS OTHERS SEE US Articles on the Cooperative Movement From January to June AMERICAN CONSUMER, January, "Consumers in Action," notes on cooperative events. AMERICAN FEDERATIONIST, "How to Pay for Adequate Medical Service," an editorial urging cooperative medicine. AMERICAN LIBRARY ASSOCIATION BULLETIN, April, "Book Cooperative for Libraries." AMERICAN-SCANDINAVIAN REVIEW, Spring, "Cooperative Iceland," Ragnar Olaffson. A study of one of the most highly de veloped cooperative countries in the world. BUSINESS WEEK, February 11, "Co-op National Brand" ; April 22, "The Consumer Move ment," a report to executives on the con sumer movement, the co-ops come in for comment; May 13, "Co-op's Power Plant." BUTCHERS ADVOCATE, March 29, "The Meat of Things," by Roy M. Cohen. The author argues that there is no need for coopera tives and they are "un-American." CALIFORNIA LABORER, March 10, "Cooperative Business Has Many Values Plus Divi dends," John Vesecky. CENTRAL-BLATT AND SOCIAL JUSTICE, May, "Grand Etang and Corporative Unity," Jos. F. MacDonnell, S.J. Cooperatives and credit unions in Nova Scotia. 95 i'!!- CHICAGO UNION TEACHER, April, "Consumers' Cooperatives" J. P. Warbasse. This issue also contains articles on cooperative health, credit unions and social legislation. CHINA WEEKLY REVIEW, April 8, "China's Industrial Cooperatives." COMMONWEAL, May 15, Editorial comment on the Consumer Movement Report in Bus iness Week. CONTRA COSTA LABOR JOURNAL, March, Year book, "Competitive Medicine Has Failed to Serve the People." The story of Dr. Shadid's fight for adequate medical care. COUNTRY GENTLEMEN, February, "Consumers Try Cooperation," Arthur W. Baum. A readable, informative article. FREE AMERICA, May, "Program for Action," Bertram B. Fowler. MACL.EANS MAGAZINE, April 15, "Co-ops Sell Fish," Arthur P. McKenzie and "And Build Homes," Lillian Von Qualen. The story of the North Island Trollers Coop erative Association and of the cooperative housing project at Tompkinsville. MONTHLY LABOR REVIEW, March, "Position of Cooperatives Under Wage and Hour Act," "The Cooperatives and the TVA"; April, "Cooperative Enterprises Among College Students." NATION, February 4, "Co-ops and Common Sense," Helen Woodward; January 21, "Co-op Nominations for the Honor Roll," Wallace J. Campbell. NEWSWEEK, February 13, "Co-op Banking." NEWS FOR FARM COOPERATIVES, May, "Coop erative Integration in the British Isles," Margaret Digby. NEW YORK TIMES, May 21, "Cooperatives Seek to Give More Jobs," an interview with Rev. J. D. Nelson MacDonald. OREGON DAILY EMERALD, April 11, "Univer sity of Oregon Cooperatives Grow." PORTAL, May 20, "National Housekeeping— Cooperatives," Ruth Brownlow. General cooperative material with specific informa tion on the Norris School Cooperative. PROTESTANT DIGEST, March 3, "Don't Wait for the Superman," Dr. M. M. Coady. Re printed from the Extension Bulletin. READERS' DIGEST, June, "Cooperating Their Way Through College," Bertram B. Fow ler. Condensed from Survey Graphic. RURAL AMERICA, April, "Producer-Consumer Relations," Mjirray D. Lincoln. SCHOOL ACTIVITIES, May, "Student Coopera tive Projects," Arno Nowotny. SOCIAL FRONTIER, March, "The Logic of Co operative Medicine," M. Shadid, M.D. STANDARD, March 4, "Eyes of Continent on Maritime Cooperatives," Alien Cook. SURVEY GRAPHIC, June, "Co-ops on the Cam pus," Bertram B. Fowler. An encouraging survey of student co-ops. 96 TIDE, June 1, "Co-op News," news items on recent cooperative progress. TERMINAL ISLAND TOPICS, A series of seven articles March 3 through April 14, "Ser vice vs. Profits." The editor of the weekly newspaper for and by residents in the fed eral penitentiary at Terminal Island, Calif, does a brilliant series of articles showing the advantages of consumer cooperation, over private profit business. VANCOUVER PROVINCE, January 21, Magazine Section, "B.C. Fishermen Get Together" by Charles J. Woodsworth. WOMEN AND MISSIONS, May, "Learning Through Doing," Harper C. Donaldson. Cooperatives in the Presbyterian schools in New Mexico. PLAYS The Spider Web, a 3 act play, by Bills Cowling .............................................................. .25 The Answer, a 3 act play, by Bills Cowling .20 Two One Act Plays, Bills Cowling .............. .15 POSTERS Organize Cooperatives, 26"x3S" Green, 5 for SI .......................................... Cooperative Principles, 19"x28" Blue, 5 for $1 .............................................. Cooperative Ownership, 19"x28" Mulberry, 5 for $1 .................................... .20 .20 ....... .20 FILMS "The Lord Helps Those—Who Help Each Other," a new 3 reel, 16 mm. film of the Nova Scotia adult education and cooperative pro gram, produced by the Harrnon Foundation. Excellent photography. $4.50 per day, $2.25 additional showings, $13.50 per week. "A House VVitliout n Landlord," a new 2% reel, 10 mm. silent film on the Amalgamated Cooperative Houses in New ïork City. Kent- al $3.00 per showing, $1.50 each additional showing, $10.00 per week. "Cliisnlng Hands," 10 mm. silent, two reel film, showing liow cooperation is taught in the schools of France. Won the Grand Prize at the International Exposition, Paris, 1037. "When Mankind Is Willing," a 16 mm. silent three-reel film, with English titles, of coop erative stores, wholesales and factories in Prance. Rental: Each of three above $3 per day, $1.50 for each additional showing or $10 per week. Fire Insurance ON YOUR FURNITURE SAFE - ECONOMICAL - COOPERATIVE Workmen's Mutual 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. À A Cooperative Economy E. R. Bowen Cooperative Medicine Today Kingsley Roberts Cooperative Buying is Big Business Free Trade in Ideas: Miiitown Education Conference Glenn W. Thompson Accountants Stress Uniform Reports at National Meeting Laurie L. Lehtin National Cooperative Recreation School Ellen Edwards Reviews: Jgclc McLanahan, J. Henry Carpenter. C. Maurice WIeting and Others. Consumers' Cooperation July 1939 NATIONAL MAGAZINE FOR COOPERATIVE LEADERS CALENDAR OF COMING EVENTS Circle Pines Center, near Hasting, Michi gan, series of summer institutes: Youth Institute, July 9-22 Co-op Educators, July 23 to Aug. 5 Managers and Directors, Aug. 6-19 Co-op Medicine, Insurance, Journal ism, Aug. 20-26 Co-op Finance, Personnel, Housing, Guilds, Aug. 27 to Sept. 2 Educational Conference, Sept. 2-4. California State-wide Conference on Con sumer Cooperation, Camp Sierra, Cali fornia, July 15-22. First Annual Conference, Association of Medical Cooperatives, Hotel Astor, New York City, July 20-22. Eastern Cooperative League, Summer In stitute, Mass. State College, Amherst, Mass., July 30 to August 12. World Congress on Education for Democ racy, Teachers College, Columbia Uni versity, New York, August 15-17. Tour of Nova Scotia Cooperatives, opens with Rural and Industrial Conference at Antigonish, Aug. 21-23 and con tinues with a tour of Eastern Nova Scotia and Cape Breton to Sept. 2. SUBSCRIBE TODAY V Special articles on cooperative business and education V Important news on American cooperative progress V Editorial comment on the issues facing the cooperatives V Reviews of new cooperative books Written so "he ivho runs may read" CONSUMERS' COOPERATION $1 per year; 27 months for $2 Send subscriptions to THE COOPERATIVE LEAGUE 167 West 12th Street, New York City THE COOPERATIVE LEAGUE 167 West 12th Street, New York City 608 South Dearborn, Chicago DIVISIONS: Auditing Bureau, 167 West 12 St., N. Y. C. Medical Bureau, 5 E. 57 St., N. Y. C. Design Service, 167 West 12 St., N. Y. C. Rochdale Institute, 167 West 12 St., N. Y. C. Clusa Insurance Service, 135 Kent Ave., Brooklyn, N. Y. AFFILIATED REGIONAL COOPERATIVES Name Central Cooperative Wholesale Consumers' Cooperatives Associated Consumers Cooperative Association Cooperative Book Club Cooperative Distributors Cooperative Recreation Service Cooperative Wholesale, Inc. Eastern Cooperative Wholesale Farm Bureau Cooperative Ass'n Address Superior, Wisconsin Amarillo, Texas N. Kansas City, Mo. 118E. 28 St., N.Y. 116E. 16 St., N.Y. Delaware, Ohio 2301 S. Millard, Chicago 135 Kent Ave., Bklyn Columbus, Ohio Publication Cooperative Builder The Producer-Consumer Cooperative Consumer Readers Observer Consumers Defender The Recreation Kit Farm Bureau Mutual Auto Insurance Co. Columbus, Ohio Lansing, Michigan St. Paul, Minn. Seattle, Washington Indianapolis, Ind. Minneapolis, Minn. Chicago, 111. Walla Walla, Wash. Harrisburg, Penn. Indianapolis, Ind. 227 E. 84th St., N. Y. E.C.L. Cooperator Ohio Farm Bureau News Ohio Farm Bureau News Michigan Farm News Farmers' Union Herald Grange Cooperative News Hoosier Farmer ^ Midland Cooperator Penn. Co-op Review Farm Bureau Services Farmers' Union Central Exchange Grange Cooperative Wholesale Indiana Farm Bureau Coop. Association Midland Cooperative Wholesale National Cooperatives, Inc. Pacific Supply Cooperative Pennsylvania Farm Bureau Coop. Ass'n United Cooperatives, Inc. Workmen's Mutual Fire Ins. Society DISTRICT LEAGUES Central States Cooperative League 2301 South Millard Ave., Chicago, Illinois Eastern Cooperative League 135 Kent Ave., Brooklyn, N. Y. Northern States Cooperative League Sexton Building, Minneapolis, Minnesota California Co-op Education Ass'n 1676 E. 85 Street, Los Angeles, Cal. Northern California Co-op Council 1715 University Ave., Berkeley, Cal. National Cooperative Women's Guild Box 1000, Superior, Wisconsin CONSUMERS' COOPERATION OFFICIAL NATIONAL JOURNAL OF THE CONSUMERS' COOPERATIVE MOVEMENT PEACE- PLENTY- DEMOCRACY Volume XXV. No. 7 JULY, 1939 Ten Cents Consumers' Cooperation Covers All Forms of Purchasing by Ultimate Users Two-thirds of the large regional cooperatives in the U. S. are now members of The Cooperative League and National Cooperatives. Probably the primary reason why the other one-third are not yet members (as we are sure they will be in time) hinges on the simple matter of interpretation of Consumers' Cooperation. Cooperative purchasing of vocational supplies is still interpreted by some as an act of production rather than consumption. We are glad to be able to present evidence from a new source. In the February issue of Country Gentleman, in an article "Consumers Try Cooperation," appear these two statements: "Farm purchasing groups dealing in farm supplies and urban con sumer groups dealing largely in groceries and household goods . . . fundamentally are practicing Consumers' Cooperation." "All these groups are practicing Consumers' Cooperation, whether farm or city, human, animal or machine." These statements support the definition which the Cooperative League has submitted to the International Cooperative Alliance for approval which reads: "Consumers' Cooperation, in its broadest sense, is understood to mean the purchase of all forms of food, goods and services by ultimate users, organized on the basis of Rochdale principles." We predict that it will only be a matter of time when a definition is accepted by all that Consumers' Cooperation includes the purchase of vocational as well as household supplies, and that all regional cooperative purchasing associations will organize under the same national and international banner for mutual assistance and protection. An organ to spread the knowledge of the Consumers' Cooperative Movement, whereby the people, in voluntary association, purchase and produce for their own use the things they need. Published monthly by The Cooperative League of the U. S. A., 167 West 12th St., N. Y. City. E. R. Bowen, Editor, Wallace J. Campbell, Associate Editor. Contributing Editors: Editors of Cooperative Journals and Educational Directors of Regional Cooperative Associations. Entered as Second Class Matter, December 19, 1917. at the Post Office at New York, N. Y., under the Act of March 3, 1879. Price $1.00 a year. f Thorsten Odhe, editor of the Swedish magazine KOOPERATOREN, in an article about the progress of cooperatives in the U. S.A. correctly describes America as "the promised land for trusts and chains," which are the "giants" American cooperatives must meet and conquer. * * * Alex du Pont of Paris died last summer and was buried in peace. But he couldn't be allowed to rest from the cares of this world for in his suit was a lottery ticket which drew a million franc prize. His body was dug up to enable his widow to cash the ticket. Our gambling economics follows us into our graves. *l' sfc ^ In a Nova Scotia cooperative play "The Miner's Wife," a fisherman tells how Father "Jimmy" Tompkins arouses the economically-and educationally "dead": "Father 'Jimmy' he come along." "Ello," he say, "you get along pretty good?" "No, Father," I say. "You belong to Credit Union?" "No, Father." "You belong to Cooperative Store?" "No, Father." "You belong to Fishermans' Cooperative?" "No, Father." "You belong to Study Club ?" "No, Father." "You read anything?" "No, Father." "Might as well be dead," he say, "might as well be dead." "I go home. Might as well be dead, I say, might as well be dead. I stay awake all night. Next day I join Study Club. I join Credit Union. I join Cooperative Store. I join Fishermans' Cooperative. I get book to read. Now I not be dead. This Cooperation is all right." * * * Cooperatives Demonstrate "The Society-Making Power of Love" There are many who sense Walter Rauschenbusch as one of our greatest prophets of social justice. His book written in 1912 "Christianizing the Social Order" had a profound effect. In it you can find a chapter headed "The Powers oj the Coming Age" which describes consumers' cooperatives as one of these powers, along with producer and political organizations. In 1914 he wrote a pamphlet "Dare We Be Christians?" which, with such a challenging title, naturally dropped out of circulation during the world war, and is seemingly little known. A copy of this pamphlet has recently been contributed to the Cooperative League library. It has in it this striking description and prophecy written twenty-five years ago: "Cooperative organizations are a remarkable demonstration of uhe society-making power of lore. Judged from a financial point of view they have no chance of survival. Those who organize them have little capital, little experience, little business ability. The cooperatives are matched against the best survivors of capitalistic competition, and their entrance into the field often causes a united effort of all their competitors to keep them down, while they themselves are forbidden by their principles to undersell the others. Yet with proper management they have slowly built up an international success that commands increasing admiration of social students. Their strength is in love. They succeed best among trie lower classes, who always have to practice interdependence. . . . They do not succeed amone classes where every man is for himself, intent on advancing personally and quite willing to leave others behind. The next fifty years will see a long contest for survival and dominion between the capitalistic and the cooperative tyte of organization. The formet1 is strong through selfishness and possession; the latter through the resources of love." A COOPERATIVE ECONOMY E. R. Bowen The following is a condensed statement of the Purposes, Principles and Pro grams of a Cooperative Economy. The Purposes of Cooperation Cooperators purpose to achieve the élimination of poverty, unemployment and tenancy and the economic causes of disease, crime and war. The Principles of Cooperation Cooperators believe that the following are fundamental principles of the democratic economic organization of society : 1. The right of every person to an equitable share of the national income based on each one's needs. 2. The right and obligation of every able person to an equitable share in employment, under conditions which are conducive to the fullest physical, mental and spiritual development. 3. The right of every adult to an equitable share in the ownership of individual and social property. 4. The right of every person who is unable to participate in regular employment, because of youth, age or illness, to the proper care for each one's fullest development. 5. The right of every person to the fullest degree of democratic control over his economic affairs. The Programs of Cooperation Cooperators support the following programs of action as means of achieving these purposes and incorporating these principles into democratic economic organization : 1. The ownership of farms and homes by their users. 2. The organization of labor into unions and of farmers into marketing cooperatives for collective bargaining. 3. The organization of consumers into cooperatives to supply themselves with food, goods and services of pure quality at a just price, which is the cost of production and distribution. 4. The ownership by the public of such utilities as transportation, com munication, electric and water supply, and such natural resources as have a public interest. 5. The development of social insurances providing for a national mini mum of income, leisure, health, housing and education. Cooperators believe that the adoption of these Purposes, Principles and Pro grams by the democratic process of discussion and organization will be the means of gradually achieving a Cooperative Economy which will result in plenty for all the people and peace -among all the nations of the world. Such a Cooperative Economy will and should develop only as rapidly as persuasion increases the number of people who organize to practice Cooperation. 98 Consumers' Cooperation JU1V) 1939 99 COOPERATIVE BUYING IS BIG BUSINESS r hi What the Government can do in col lecting statistics for the Cooperative Movement and publishing them, as it does for private business, is well illus trated in the new Bulletin No. 26, A Statistical Handbook of Farmers Coopera tives, issued by the Farm Credit Adminis tration. This can be secured from the Government Printing Office in Washing ton for 35c. The statistics are from a first hand census of all farmers' cooperatives and cover the year 1936. Number, Kinds and Location The number of farmers' cooperatives, the principal business of which was pur chasing, was 2601. This number was di vided as follows: Independent Associations ......... 1,037 Members of Federations ............ 1,328 Federations ........................._.._... 55 Subsidiaries .......................................... 181 TOTAL .................................... 2,601 It is noteworthy that the independent associations should be so many in num ber, and that a local cooperative, which has drawn a number of farmers together to gain the benefits of cooperation, should not itself appreciate the further advan tages to its members of federating with other cooperatives. There is plainly a great deal of cooperative education yet to be done among cooperatives. The 2601 cooperatives are divided by principal kinds of commodities handled as follows: Feed stores ......................._................. 490 Exchanges ....___._._............... 396 Petroleum Products ........................ 1,057 Mixed supplies ...................._........ 324 Other types ..._.____.__ 334 Number of Patrons Feed Stores ........_._........................ 378,736 Exchanges .................._.......................... 150,153 Petroleum Products _.......................'. 560,518 Mixed Supplies ....................................... 251,251 Other Types ................................................ 136,712 100 Ten States had 1,565 of the 2,601 co operative purchasing associations : Missouri ...... 246 New York... 159 Wisconsin... 195 Kansas .__ 117 Minnesota ... 190 Iowa ............... 114 Illinois ......... 186 N. Dakota ... 94 Nebraska ... 171 Ohio ............... 93 There were also 4,227 marketing asso ciations which did some purchasing. Dates of Organization Of the 2,601 farmers' purchasing co operatives existing in 1936, fifty were organized before 1912. Then came a sig nificant upturn. During the next ten years —from 1912 to 1921, inclusive—there were 658 more organized which were in existence in 1936. Then organizing slowed down after the war until 1926, when it rose again. The fifteen years from 1922 to 1936, inclusive, added 1,893 more associations to the number, making 2,601 in all. By decades, of these 2,601 associations, 1,549 are within ten years of age, 876 from ten to twenty years, and 176 over twenty years. Votes Held by Farmers The percentage of purchasing associa tions in which farmers held more than 90% of the votes were: Feed Stores ......................._..._..... 85% Exchanges .................__....._........ 86% Petroleum products ........................ 83% Mixed supplies _............................. 84% Other types ............................................. 90% There is a constant increase in non- farmer membership as cooperatives grow older. Patrons and Members Of the 1,477,370 patrons, only 770,862 were members, which were divided as follows : Number of Members 244,531 61,065 287,966 91,785 85,515 Per cent of Members 65% 41% 51% 37% 63% There is plainly a great deal of education to be done in getting those already patrons of cooperatives to become members, as there is of cooperatives to become members of federations. Volume The net volume by commodities in 1936 was as follows: Feed and Flour ......._....$116,100,000 Building Materials ......... 73,299,000 18,751,000 17,923,000 8,419,000 8,073,000 Petroleum Products ...... Fuel (mostly coal) ...... Fertilizer and lime ......... Livestock ...................._.... Consumer Merchandise Seeds ....................................... 7,670,000 Machinery and Equip. 5,996,000 $4,670,000 Packages, etc. ..................... 4,535,000 Hardware and Implem. 1,995,000 Spray Material .____ 1,679,000 Binder Twine ..................... 1,096,000 Miscellaneous ..................... 67,092,000 TOTAL .................___.....$337,298,000 The volume of purchases of associations operating primarily at country points by States where over $10,000,000 of cooperative purchasing was done was as follows: Illinois .......................................$23,792,000 Missouri .................................... 20,721,000 Ohio ....._...................................... 20,637,000 Minnesota ..........__........... 19,382,000 Iowa ............................................. 18,854,000 California _.......................... 18,424,000 Wisconsin .................................$16,633,000 New York ...___............. 15,691,000 Washington ....___........... 14,975,000 Kansas ....................................... 14,479,000 Indiana ...........__.......__ 13,478,000 Nebraska Michigan ......... Retail Operations by Percentages The average retail operating results by percentages were as folio' Gross Margin Feed Stores ....................._.................... 9.6% Exchanges ................................................ 8.4 Petrol. Ass'ns _................................... 21.8 Mixed Farm Supplies ..................... 13-2 Average Purchases and Returns per Patron The average purchases per patron in petroleum associations was $116 and the average return per patron was $7. The advantage of volume is indicated by the fact that the average patronage return was $1 in petroleum associations having vol umes of less than $10,000 and $14 in associations having volumes of $400,000 and over. Other Income .6% .8 1.3 2.4 Expenses 7.6% 7.6 15.3 11.9 Consumers' Cooperation NX' 1939 Summary The Cooperative Purchasing Movement is highly indebted to the Farm Credit Ad ministration for having collected and published these accurate statistics. Other figures of significance will also be found by readers in this Statistical Handbook of Farmers' Cooperatives. We have only summarized some of the purchasing statis tics—the book includes cooperative mar keting as well as irrigation and mutual fire insurance associations. 101 A SURVEY OF COOPERATIVE MEDICINE TODAY Dr. Kingsley Roberts Director, Bureau of Cooperative Medicine cine and the Association of Medical Co operatives. Second, the Association con tracts with the doctors. Third, the member applies for service as provided in the con tract. By virtue of the arrangements made, any member of Group Health Associa tion of New York can now protect him self and his family against the vicissi tudes of ill health. The services available are complete physicians services, x-ray and laboratory work, periodic physical exam inations. Two points here are important. The services include those of both gen eral practitioner and specialists. While these doctors each maintain their own offices in which they see the members, they hold frequent meetings and have themselves set up standards to govern their own work. The emphasis in the rendering of services is on preventive medicine. Each person receives a thorough physical examination, not only at the time of his application for service but period ically thereafter. A Wassermann and a flouroscopic examination are a routine part of these examinations. What Price Complete Medical Service? What does such a service cost ? The an nual medical fees on the complete plan for the head of the family and /COOPERATIVE medicine is proving, >^> in various sections of the country, that it can achieve its two goals—protect the family pocketbook from large and un expected drains and give a better medical service than members could get for the same money without the cooperative. I do not mean to imply that those plans that are in existence are perfect. They aren't by any means and it is important that we remain self-critical. But it is significant that the existing plans with all of their difficulties and defects can accomplish as much as they do. Perhaps the best way to illustrate the ways of cooperative medicine is to de scribe briefly a few of the plans that I have personally investigated. Let us start with New York and swing around the country. Group Health of New York Group Health Association of New York, of which I am chairman of the Medical Advisory Committee, is now completing about one year of experi mental operation. This year has revealed many advantages and many flaws in a cooperative structure that fits into the City's needs. As the period of operation was experimental, adjustment was com paratively simple. Advantages retained; disadvantages and flaws eliminated. Now that the experiment is almost over, the membership rolls will be opened to the public. The plan is really simpler than the following description: The Association has arranged by con tract with carefully selected physicians for services to be rendered to those members who desire to subscribe them. Thus there are three steps — first, the person must join the Association, dues $2 per family per year. These dues include a subscrip tion to the popular monthly magazine "Cooperative Health" which is the official organ of the Bureau of Cooperative Medi- 102 are $20 for each additional member of the family. There are several exceptions to the service such as Workmen's Compen sation cases, cases requiring institutional care, i.e., T.B., mental, drug addiction, etc. There is no use setting forth further details of the plans here. Those interested can write me and I will turn the letter over to the proper people. Just a final word about these services. I know New York medicine pretty well. I practiced in the City for 18 years; ray father was a doctor there before me. I can truthfully say that the services re ceived by the Group Health Association of New York members under the plan compare most favorably with any that can be obtained. From the standpoint of ability and training, the doctors serving the members rate as a group extraordi narily high; and equally important they are conscientious, endeavoring to do the best job they can. Group Health of Washington D. C. Now let us hop down to the Nation's capitol where another Group Health As sociation is in operation. This is the more famous of the two plans. The opposition to it by the local medical society and by the American Medical Association has made its development national news. The Washington Group Health Asso ciation differs from New York's in that they have their own clinic, in that the doctors are on full-time serving members. Given doctors of equal training and abil ity, they will do better work when work ing as a group. By pooling office space and equipment, many economies are pos sible. The combination of these savings with the utilization of a full time staff therefore means not only better service but lower dues. Group Health Association in Washing ton has about 2,500 members plus their dependents, about 5,500 in all of these are scattered through many branches of the Federal Government for, because of a quirk in the law, only employees of the Executive arm of the Federal Government may belong. These people pay dues as follows: $2.20 per month for the head of the family, $1.80 for dependent adults, $1 for each child between 18 and 21 and $1 for all children under 18. Group Health Association's staff is now composed of 10 doctors, 7 nurses and 5 technicians and pharmacists. The 10 doc tors are so trained that 10 different specialties are covered. The result of the Group Health Association set up is that the member has not one doctor but 10 to serve his needs. In addition when the services of outside physicians are needed, the organization pays the bill. For ex- Consumers' Cooperation July, 1939 ample, during the first 3 months of this year 28 people required such services and Group Health Association spent $1,830.00 for them. But there are other figures that are more impressive — Group Health Association serves approximately 5,500 people. These 5,500 received the following services dur ing the first three months of 1939: Consultations : Medical ....................................... 6,679 Obstetrical ................................. 400 Pédiatrie ....................................... 1,888 Eye, Ear, Nose and Throat .................................... 3,250 Surgical ....................................... 1,869 Treatments: Physiotherapy ........................ 4,232 X-ray ............................................. 629 Laboratory Tests .................. 4,454 Admission Physicals ......... 589 Prescriptions filled at clinic pharmacy ............... 4,677 Home Calls .............................. 1,160 Hospitals .................................... 255 During this period 116 persons were hospitalized for a total of 710 days with an average stay of 6.1 days. When spread among the entire population served by Group Health Association, it means 0.1? days approximately for each person. The average cost of hospitalization per per son was $42.25. This volume of service meant that on an average day 232 persons visited the clinic of the Association. The Doctors Change Their Minds Last summer Group Health Associa tion secured pledges of $6,700 from its members toward the construction of a Group Health Association hospital. Now that existing hospitals have changed their attitude towards the cooperative and have admitted its doctors to the courtesy staff, the Group Health Association hospital is no longer essential. But the clinic has to be expanded so that crowding can be eliminated and new members admitted. 103 The effort is now being made to turn over the hospital pledges for expansion of the medical quarters. Greenbelt Cooperative Health From Washington, it is only a short drive to the town of Greenbelt. Green- belt is probably as close to a cooperative town as we have in this country. In de veloping their own various business enter prises, the citizens of the town did not neglect their health. A Cooperative Health Association was organized and is now functioning smoothly, after a year of heartaches, using two full-time physicians. The Association is quartered in the Medical Center, one of the units of houses near the top of the crescent in which Greenbelt is laid out. The services available there are con stantly being expanded as more and more families join. There is now every likeli hood that 7 hospital beds will be in stalled in the Medical Center for emer gency and minor work. In planning the services at Greenbelt, special emphasis is being placed on maternity and infant care. A nursery and well-baby clinic is being organized. Wage Earners Health Assn. From Greenbelt, let us jump to the Middle West. In St. Louis, there has been in existence for the past 3 years, the Wage Earners' Health Association. The Asso ciation of 800 members has been steadily growing because the members have been receiving first rate medical service. There are many lessons to be learned from their experiences and mistakes, one of which now jeopardizes the future of the Asso ciation. One of the executives of the As sociation released a list of the doctors serving the Association and gave them in correct University positions. The incorrect positions were bad enough but the fact that the list was publicly given out shows a most serious blunder for it immediately jeopardized the careers of the doctors and forced the entire staff to resign. Inasmuch as the Board of Directors had adopted a policy of not releasing the 104 names, the blunder was inexcusable. All groups can learn from it that the closest cooperation between the lay and medical side of any health association is abso lutely essential to its success. We all hope that the difficulties of the Wage Earner's can be straightened out. The plan has been doing too well to fail. It offered to low income people of St. Louis a chance to budget medical expenses at a very low cost. The Association is similar to the Elk City plan in that dues are very low and charges are made for many special set- vices. While complete prepayment is more desirable, if the members adopted such a policy, that is their business. Elk City Cooperative Hospital Our next stop is Oklahoma at the Farmer's Union Cooperative Hospital in Elk City. Here we find the leading coop erative hospital in this country. Because of these facilities members of the Asso ciation may for approximately $24 per year per family insure themselves against illness and take advantage of the pre ventive services available. These dues pay ments cover the bulk of services but cer tain extra charges are made in special cases. For example, a charge of $2 per day for hospitalizâtion is made, as well as small charges for the use of the oper ating room and for major and minor surgery. Under the Elk City arrangements, Dr. Shadid the Medical Director is hired by the Board of Directors and he in turn is fully responsible for the work of the staff as well as the selection of physicians. A staff of 6 doctors serve the members and have between 30 and 100 office calls a day. About 1,000 operations are per formed each year. There is no reason to go into details on the Elk City organiza tion. Dr. Shadid's newly published auto biography gives the whole story. San Diego Beneficial Society From Elk City we will make one final jump to San Diego, California where the San Diego Beneficial Society is flourish ing. Organized as a fraternal organization because of the peculiarities of California law, the Beneficial Society is unique in other ways. More than any other group, it has developed a social program through which all members quickly get acquainted with each other. This has led to a marked cohesion of membership. The services are furnished by a group of top notch doctors who have their own clinic and work in cooperation with the Society. Under the plan a member is as sured against medical and hospital care for $2 per month. Like many other plans including those in Elk City and St. Louis, the doctors are paid a percentage of the dues. This is then distributed among themselves as they may desire. In these plans we have, therefore, a peculiar type of cooperative. It is a hybrid form that is a fusion of consumer's and producer's cooperative. Experience shows that only when this is highly developed— when it is recognized that there are in fact two groups working together—the doctors and the patients—that the plan will be successful. Too much power in either group inevitably leads to trouble. There are other plans—one in St. Paul and the other in Superior, that I have not had the opportunity to visit since they started. New Ventures in Cooperative Medicine Just a word about the St. Paul and Superior plans. The former is simply a group hospitalizâtion plan on a coopera tive basis. Of interest are their plans for the future addition of medical service. As in the case of the Superior plan, the ap proach is atypical and the results of the experiment will be most interesting. I had occasion to visit Superior before the plan actually began operations. After over a year of searching ways and means of organizing their own group, they en tered into a contract with the local medi cal society under which the cooperative turned over all medical phases of the plan to the medical society. I was skeptical of the current arrangement when it was first entered into. For a while, it looked like an interesting experiment but a clause in the contract limiting membership to 300 may hamstring it. Time alone will tell. We are all watching these two coopera tives because now, as in the past, any method that arrives at the set goal is as successful and as praiseworthy as any other. Of other plans now being organized we shall all hear more later. FREE TRADE IN IDEAS AT MILLTOWN EDUCATION CONFERENCE I 'HE Fourth Annual Conference of the -L Publicity and Education Committee of the Cooperative League, at Milltown, Wis consin, June 22-24, reached a new high in interest and thoroughness of discussion. As someone remarked, the Conference il lustrated "free trade in ideas." Limiting the number of topics, the conferees ex plored carefully the techniques of pub licity and education used by the coopera tives; the problems -that confront the movement and the possibility of greater coordination between the National office Consumers' Cooperation July, 1939 Glenn W. Thompson Educational Director, Midland Cooperative Wholesale and Regional groups, as well as between the various departmental activities of ac counting, publicity, education, legislation and recreation. An effort to interpret the cooperatives' position relative to govern ment, to privately controlled publicity agencies and to organized educational institutions received the attention of the delegates. The Study Club—Democracy at Work The discussion group technique of membership education was presented by L. F. Warbington of Ohio, Ralph Compers 105 of Midland and Robert Smith of Eastern Cooperative League and Wholesale. The many aspects of coordinating the activity of Discussion Clubs or advisory councils with the problems of the local cooperative, the barriers to be overcome in cooperative organization of the city consumer and the relative merits of proceeding from Study Clubs to Buying Clubs to Stores versus from Study Clubs to a federated coopera tive store program were angles explored still further in the group discussions fol lowing the talks. An adequate program of publicity from the national office through wholesale to local retail cooperatives was discussed in turn by the Secretaries, E. R. Bowen and Wallace J. Campbell, of the Cooperative League ; Joseph Gilbert of Midland, Oscar Cooley of Central Cooperative Wholesale and George Tichenor of Eastern Coopera tive Wholesale, Anthony Lehner of Penn sylvania and Merlin Miller of Consumers Cooperative Association. Reports were made on new books, pamphlets, magazine articles, filmstrips and movies. The dele gates replied by offering suggestions for appropriate material in news releases, and the quality, content and temper of cooper ative publications. The several editors in a "shop-talk" session of their own ex changed views on costs, deadlines, mail ing experiences and policies of the Co-op papers. Movies for Mass Education The subject of moving pictures was thoroughly studied. "The School" and "The City" were projected as new ex amples of what is possible in the field of documentary films. The proposed film on Co-ops in America was reported by Mr. Campbell for the film committee. All of the cooperative wholesales represented in dicated that the demand for cooperative pictures and films treating on the social problems of the nation was a criteria which the movement should recognize in its effort to use modern methods in mass education in meeting present day prob lems. Relating the publicity and educational 106 functions to the other phases of Coopera tive enterprise was partially accomplished by having one joint session with the co operative accountants. In this session more effective methods were considered to in terpret financial statements and coopera tive records to the members of the coop eratives. Mr. Jack Schalet, attorney for the Consumers' Counsel of the National Bi tuminous Coal Commission, pointed out the necessity of Wholesale Cooperatives keeping departmental operating records in order to.establish reliable "yardstick" costs of distribution. A shift in emphasis from the theoretical and philosophical approach to that of efficiency of operation and of adequate capitalization would indicate another significant characteristic of the conference. Education for Democracy Preparatory to participating in the World Congress on Education for De mocracy, Dr. Frank Cyr of Teachers Col lege, Columbia University called on the consumer cooperatives for an expression as to what the public school system should do to train the future citizen to maintain the democratic system. This was a prelim inary hearing to the participation of repre sentatives of the Cooperative League in the Congress later in the summer. Train ing of students to think instead of to memorize, placing an emphasis on the democratic process in education and stress ing the necessity of economic democracy before political democracy can be thor oughly experienced were points brought out in discussion.' In comparing this year's conference with the three previous ones, the writer believes that a more intense desire was manifest by all participants to outline the basic problems with which all cooperative groups are faced. Every session demon strated that democratic discussion makes it possible to achieve unanimous agree ment on a collective solution. From such processes the real essence of democracy springs. A collective realization of the problem is experienced. The problem is thoroughly discussed and probable solu- Consumers' Cooperation tions are recommended by the small groups. A democratic decision is arrived at by the entire body. Cooperative action carries the group forward toward its goal. The Publicity and Education Commit tee of The Cooperative League, at a spe cial meeting held during the conference, elected Merlin Miller of Consumers Co operative Association, chairman and Glenn W. Thompson of Midland Cooperative Wholesale, secretary for the ensuing year. The committee is composed of the educa tional director and editor from each re gional cooperative association affiliated with The Cooperative League. The com mittee also voted to hold an intensive meeting on publicity and educational problems in Chicago next March. ACCOUNTANTS STRESS UNIFORM REPORTS AT NATIONAL MEETING ""THE National Society of Cooperative -«- Accountants, technical and profession al organization of auditors and account ants engaged in cooperative practice, held its fourth annual meeting at Milltown, Wisconsin, on June 20 and 21. The meet ing immediately preceded the Conference for Cooperative Educators and Publicity Men, and the afternoon of June 21 was given over to a joint session with the educators. The Society, which now numbers fifty members from sixteen states and repre sents fifteen distinct cooperative auditing services or departments, was organized at Columbus, Ohio, in 1936. Its purpose is to unite those doing public accounting and related work for cooperatives so as to improve and unify their service, to fur ther the interests of the cooperative move ment by advancing the science of coopera tive accounting, business administration and management, and finally to promote the interests and friendly relationship of the accountants themselves. Since its be ginning, the Society has been able to bring the cooperative accountants together to discuss many of their technical and mutual problems, and this dissemination of ideas has continued throughout the year by means of a monthly Bulletin, issued to members. The Milltown meeting in its technical discussion covered "Scope of Audit and Advisability of Contract Specifying Scope," led by K. S. Alanne; and "In- July, 1939 Laurie L. Lehtin come Tax Problems of Cooperatives" led by Hans H. Lahti. A System for Wholesale Auditing "Auditing of Cooperative Wholesales" was introduced in a letter from Werner E. Regli of the Cooperative League Ac counting Bureau. He suggested that mem bers of the National Society of Coopera tive Accountants might be used as a na tional staff to make aduits of wholesale societies. The advantage of having an in dependent outside auditor would be sup plemented by the gradual standardization of accounting and financial statements, thereby making possible comparisons of operations. Such comparisons are not pos sible today because of the variations in op erating statements of the various coopera tive wholesales, as well as of retail coopera tives. The Society's board of directors was instructed to study the question, and em powered to call a meeting of auditing de partment heads to further these plans. In the business session, the new Con stitution was adopted, the Bulletin was discussed, and directors and committees chosen. E. R. Bowen and V. S. Alanne were elected honorary members in recog nition of their interest in the field of co operative accounting. Officers and directors elected for the coming year were: E. F. Selvig, president; F. K. Wadsworth, vice-president; Laurie L. Lehtin, secretary-treasurer; Walter Jacobson and Jules Englander, directors; and Fred Myhre and Hans Lahti, alternate directors. K. S. Alanne became auditor. 107 I The Need for Uniformity In the joint meeting with the educators, J. J. Schalet, attorney on the staff of the Consumers' Counsel of the Bituminous Coal Commission dwelt on the need for uniform accounting records, departmental izing or segregating the costs involved in handling coal so that the cooperatives might serve as a yard stick for the costs of coal distribution. E. R. Bowen discussed the necessity for gathering cooperative sta tistics and its corollary, uniform account ing statements for cooperatives. The group split into discussion circles, which brought back the uniform opinion that the Coop erative League has need for a research sta tistician, and that the member wholesales should finance this department. A simplified balance sheet used for im pressing members of the Midland group with the need for adequate financing was explained by Art Smaby, credit manager for the Midland Cooperative Wholesale. SEVENTY-FIVE PARTICIPATE IN NATIONAL COOPERATIVE RECREATION SCHOOL Ellen Edwards THE National Cooperative Recreation School, which was held at Milltown, Wisconsin, June 26 to July 8, drew to gether seventy-five students from all sec tions of the country. The students received training under the direction of expert recreation leaders in folk dancing and games, dramatics, puppetry, group singing and musical instruments and crafts. Twelve states, the District of Columbia and two provinces of Canada were repre sented at the School. The majority of the students came from cooperative societies and youth groups and will go back to their local communities to help in the de velopment of creative recreation. An important part of the School were the lectures on the theory of recreation and group leadership by Miss Neva Boyd, Department of Sociology, Northwestern University. "We need creative people if we are to maintain our form of democ racy," she told the group, "therefore chil dren should and can be educated to be creative and play helps in this educational process." Discussing the relation of recre ation to the cooperative movement, she said, "We cooperators want our economic system to be cooperative but all too often we continue our competitive system in our social lives. This is inconsistent and tends to destroy the very thing we are try ing to build." Dramatics for Everyone In the field of dramatics, students had 108 an opportunity to participate in all types of dramatic activity — simple dramatic forms such as charades, tableau, etc.—di recting, acting, playwriting, mass chants, etc., under the direction of Ruth Chor- penning and James Norris. Emphasis was laid on techniques of acting and directing which would provide creative expression for everyone concerned in the play. One of the significant developments was the presentation of plays which were written by students attending the school. The students were given the oppor tunity to play instruments of all types —string, wind, percussion and various rhythm band instruments — individually, in informal groups and in an orchestra. The emphasis in all of these activ ities, as well as in the group singing under the direction of Hazel Powell Stein- feldt, allowed the development of imme diate satisfactions rather than the develop ment of perfection of performance and great concern for end results. Miss Phyllis Randall gave instruction in the playing of musical instruments. Puppet Pedagogy Puppets were made for "The Consumer Consumed or Pure Applesauce," a puppet play by Josephine Johnson, and the pres entation of the play was a highlight of the School. Construction of puppets was under the direction of Miss Margaret Gardner. Nearly every student returned not only with a leather belt, purse, pewter or silver article which he had constructed himself but with an appreciation of beauty and good workmanship. Miss Lois Landfear was in charge of crafts. Short talks by various cooperative lead ers were an important part of the School. L. F. Warbington, Educational Director of the Ohio Farm Bureau Cooperatives, in speaking to the students stressed the importance of group leadership and said, "The most valuable leaders are those who have the ability to get people to come forth and use their own initiative. The people then recognize that they are a defi nite part of the structure that is being built." Continuing Recreational Education This was the Fourth Annual Recreation School to be sponsored by The Coopera tive League. It is held under the direction of the Cooperative Society for Recreation al Education, the membership of which is made up of students who have attended the annual training schools. All the facilities of the High School of Milltown were made available and the co operative community provided an ideal setting for the School. The active, enthu siastic participation of the students and the townspeople in the recreational activ ities was an indication of the stimulus which the School provided. WHERE THE WORLD IS BEING RE-MADE has been a year of achievement for the Nova Scotia cooperatives. Thirty-five co-op grocery stores in Cape Breton and eastern Nova Scotia have banded together to operate a grocery wholesale with headquarters in Sydney while the parent Canadian Livestock Co operative in Moncton, New Brunswick continued its gradual metamorphosis from a small marketing co-op to a general purpose marketing and buying federation. The Nova Scotia Credit Union League, long an educational federation, became empowered to act as a clearing house for credit union funds in the province and took its first step toward central coopera tive banking. The Extension Bulletin of St. Francis Xavier University, which has provided study material for discussion circles in the Maritime provinces for these last five years bloomed forth this June as the Mari time Cooperator. In its new role, it will serve as the officiai organ of the now pow erful cooperative movement. In the Maritimes as a whole, the "Anti- gonish Movement" is taking hold as a peaceful democratic revolution by and for the people. A total of 250,000 people of the one million in the Maritimes are Consumers' Cooperation ]\Ay, 1939 served directly or indirectly by the 700 cooperative credit unions, marketing as sociations, consumer co-op stores, pro ducer and handicraft cooperatives, hous ing and medical societies. The Provincial government of Quebec sent 125 agricultural agents and leading farmers and fishermen to observe the An- tigonish movement. British Columbia called on Nova Scotia for assistance in launching its campaign and other Cana dian provinces are following the program. Last summer 200 American educators, cooperators and churchmen attended the annual Rural and Industrial Conference which draws together about a thousand miners, farmers and fishermen who have taken the leadership in cooperative organ ization in their respective communities. The Cooperative League has arranged for another conference-tour which will begin with the Rural and Industrial Conference in Antigonish August 21 and will give American visitors an opportunity to spend ten days studying the cooperatives in ac tion. Here is your opportunity to see farmers, miners and fishermen at work re making their part of the world. Further information about the tour may be secured by writing Dr. J. Henry Carpenter, Tour Director of The Cooperative League. 109 Book Reviews SWEDEN AT WORK "DEMOCRATIC SWEDEN"—Edited by Margaret Cole and Charles Smith, Greystone Press, New York, 1939, 326 pages, $3, available thru The Cooperative League, 167 West 12th Street, New York. Three years ago Marquis Childs captured the imagination of liberal America with a bril liant description of twentieth century Sweden. Cooperators and non-cooperators alike were struck with reports of economic and social pro gress secured through a remarkable new "middle way" and it was inevitable that sooner or later another book would appear. 'Democratic Sweden" is this book, and though long awaited, our patience has been rewarded by a mature and thorough study. Undertaken as a project of the New Fabian Re search Bureau of Great Britain, we have the benefit of the thinking of a group which en joys the highest reputation in the fields of economic and social research. Fabians, who were chosen to make this study, journeyed to Sweden in the summer of 1937 and collected their material "on the spot." Each member of the group took a certain phase of the political, economic or social life and set about doing a research thesis. Their findings have been set down in the book under three headings: "Government and Politics," "The Swedish Economy," and "Social Conditions and Policy," each being further sub-divided into 15- to 20-page chapters. Cooperators will know many of the facts from other sources, but because of the unusual thoroughness and the use of heretofore un tapped sources the reader is certain to learn many new things about Sweden. Written as it is in categories the book will also serve as an excellent reference for anyone desiring to keep information on Sweden at his finger tips. Cooperation is dealt with directly in only one chapter, but its influence in the life of the country is clearly shown by the many times that it cuts across the other chapters. It is impos sible to tell the story of Sweden without fre quent references to the cooperative movement and its ramifications. Facts are given without bias and while con firming the reports that we have had of an un usually advanced country, one who has pic tured Sweden only as a land of progress will be somewhat disillusioned. The book will be of especial interest and value in this regard; for giving the people of America a balanced perspective which they have not always re ceived from other books dealing with Sweden. "Democratic Sweden" may lack the journal istic brilliance that characterized Child's work, 110 but in no sense is it a dull or weighty piece of lesearch. The language is simple, direct and even the most technical phases of the survey are handled with ease and clarity. It is a read able book and while it is not of the popular type, it will appeal to all who are interested in getting at the facts of Swedish life. —JACK McLANAHAN THE PRESENT POSITION OF ADULT EDUCATION IN SWEDEN.—The World Association for Adult Education, London, England, 1938. 72 pages. (Can be secured from The Co operative League for 50c.) This report was written by W. H. Marwick, who is a lecturer in the University of Edinburg and a tutor in Adult Education. It represents the results of a two months' visit to Sweden ' financed by the World Association for Adult Education. The booklet covers the six forms of adult education which have developed widely in Sweden: folk high schools, popular lectures, study circles, correspondence courses, libraries, and informal education under which is includ ed travel, drama, and general recreation. The author cites various reasons for stating "it is therefore of some practical interest to consider whether Sweden rather than Denmark may not be the more helpful guide" in the development of Folk Schools. He raises the question whether social idealists have "yet learned the lessons . . . that planned economics require a training in collective thought." Sub jects dealt with in Popular Lecture Courses are "more fully explored at subsequent meetings of Study Circles." These forms of adult edu cation are closely linked together. "The Study Circle is the characteristic feature of modern adult education in Sweden," according to the author. The correspondence courses conducted by the Cooperative Union make up the prin cipal part of the chapter on this subject. In a concluding chapter the author challenges the people of his own country that "preoccupa tion with more spectacular developments in Russia, Germany and Italy has so far been re sponsible for an undue neglect by British so cial reformers of the more durable achieve ments of the Scandinavian peoples." He pays a compliment to two American authors in the English language of Swedish social conditions in "Sweden: The Middle Way" by Marquis Childs, and "Sweden, The Land and the People" by Agnes Rothery. His own observa tions are summarized in the concluding sen tence, "Sweden is not a Utopia, but it seems, most nearly of European nations, to be laying the necessary foundations for an ideal com monwealth." CONCERNING THE CHOICES BEFORE Us—Dis cussion Outline, by Benson Y. Landis, Abingdon Press, available thru The Co operative League, 15c. A few months ago the book, "The Choice Before Us" by E. Stanley Jones was reviewed in Consumers' Cooperation and other cooper ative publications. It was suggested at the time it would make an excellent study book for church groups, young people's societies, clubs or camp discus sion circles. The book, however, though defi nitely pointing the way to cooperation as the only choice a Christian could make to solve our social and economic problems, did not say much about cooperatives, per se, nor was it arranged for study or questions. These difficulties are entirely eliminated by the new study outline "Concerning the Choices Before Us" prepared by Benson Y. Landis of the Federal Council of Churches. This was prepared by Dr. Landis to guide teachers and students as they study, "The Choice Before Us" (Abingdon Press, $1.50) and to suggest sup plementary reading and raise questions which more thoroughly cover the consumer coopera tive movement. There are nine lessons. Each has a brief introduction, from five to twelve questions to consider, two points of view to discuss, suggestions of things to do and more facts and reading about the question involved. With this leaflet as a guide the book becomes one of the most valuable beginning study books we have for the general principles and social and economic backgrounds of the cooperative movement. The new pamphlet is published by the Abingdon Press, as is the original book, and is available from The Cooperative League at 15c. J. HENRY CARPENTER BIBLIOGRAPHY ON CONSUMER EDUCATION— George C. Mann, Harper & Brothers, 1939, 286 pp., $4.00 This book lists with brief explanatory com ment nearly 2,000 book and magazine refer ences relating to consumer education. These ref erences are subdivided under the headings of consumer economics, information on purchasing, teaching consumer education, references, and general items. While this book gives extensive bibliograph ical information on consumer education it will be of little value to the average reader. How ever, teachers and students who have large libraries at hand will profit most from this volume. Those interested in the cooperative move ment will be pleased that 104 titles are in cluded in a chapter on cooperatives. Each ref erence is annotated, though none too critically. Some omissions are evident, the failure to list the Report of the Inquiry on Cooperative En terprise in Europe, 1937, being the most glar ing. Another title that might well have been added is Consumer's Cooperation in Great Brit ain, by A. M. Carr-Saunders, P. S. Florence and Robert Peers. The scarcity of material in the field of con sumer education is indicated by the small num ber of entries in Part III, "Teaching Consumer Education." Here again the author has left out such a valuable title as the Journal of Educa tional Sociology issue, "Education for Wise Consumption," March, 1938. The great range of references listed in this book suggest the need for a collection of source material on consumer education which could be used by those interested in this area. The Cooperative League might well compile some of the best literature on consumers' coopera tives which is not now generally available. C. MAURICE WIETING SPEAKING FROM VERMONT—George D. Aiken, Frederick A. Stokes, 1938. $2.00 George D. Aiken, Governor of the State of Vermont, who made headlines last year by de manding that the Republican Party adopt a lib eral program, declares in his latest book, "Speaking from Vermont," that those who criticize must offer a constructive program and that he feels that the organization of coopera tives provides a concrete alternative to regi mentation. Speaking straight from the shoulder in crisp New England style, Governor Aiken says, "At the risk of becoming monotonous I am going to repeat once more what I have said hundreds of times in the years past that the key to agricultural betterment lies not in compulsory regulation but in cooperation." Governor Aiken devotes an entire chapter of his book to the cooperatives, outlining their ex tent, the factors contributing to their success, and their advantages over government regula tion as an answer to the problems facing agri culture. He concludes with this emphasis on the feature of democratic control, "I am a firm be liever in farm cooperatives and I believe that these cooperatives, whether producer or con sumer, should be managed as near home as possible." Consumers' Cooperation .My» 1939 "Outline Primer of Cooperative Principles," written for use in Granges, Labor Groups and schools, by B. W. Lyon, lecturer for the Washington State Grange. Written in out line form, the pamphlet condenses a great deal of material into this profusely illus trated primer. Available only from the Grange Cooperative Wholesale, 3104 West ern Ave., Seattle, 32 pages, 15c. Ill NEW COOPERATIVE LITERATURE (Order thru The Cooperative League) "The Consumer Awakens—The Challenge of Cooperation," by Harold V. Knight, pub lished by the Farmers Union Cooperative Education Service, Jamestown, N. Dakota. A book length pamphlet bringing a consumer approach to the cooperative movement. A comprehensive description of the co-ops in Europe and America plus an analysis of con sumer cooperation as a factor in building the world as it should be tomorrow. 128 pages, 25c. "Report of the First Southeastern Regional Conference on Cooperation," held at Green ville, South Carolina, May 18-20, mimeo graphed, a limited number of copies free of charge from The Cooperative League. "Cooperatives in the U.S.—A Balance Sheet," by Maxwell Stewart, published by the Public Affairs Committee. A concise, critical but friendly general pamphlet on the cooperative movement. Very readable, 32 pages, lOc. "Cog or Collaborator," Democracy in Coop erative Education, by Herman Stolpe, pub lished by Kooperativa Forbundet, Sweden. A splendid description of the educational activities and methods of the Swedish coop eratives with particular emphasis on study circles. 32 pages, 15c. "In Business for Service," The Religious Im plications of Consumers Cooperation, by James Myers, published by the Committee on the Church and Cooperatives of the Federal Council of Churches. Mr. Myers brings his experiences as a churchman, a labor expert and a cooperator to bear in evaluating the ethical values of cooperation and die part the church can play in building "business for service." 12 pages, 5c. "Mutual Aid," by Peter Kropotkin, published by Penguin Books, England. A classic of cooperative philosophy now available for the first time in paper cover for only 25c. "My Apprenticeship," by Beatrice Webb. The autobiography of the great English econ omist and cooperative author. Formerly avail able only at $3.50. Now in the Penguin Book series, two volumes (paper cover) for 50c. "Guide Posts to Good Times," Kit A, Handy I, Edited by Lynn Rohrbough. Mr. Rohr- bough has just published a revised edition of Kit A, which he calls the "Blue Book of Social Recreation." The first section is de voted to quotations and short articles from various recreation leaders, poets, philoso phers, teachers and others on the social val- 112 ues of play. The second edition is a reprint of an article "Youth and Leisure" by EduaH C. Lindeman which appeared in the Nover- ber 1937, Annals of the American Acadet j of Political and Social Science. It is an ex cellent, stimulating article. Available through Cooperative Recreation Service, Delaware, Ohio, 25c. "Th« Consumer Consumed or Pure Apple sauce," by Josephine Johnson, which first appeared in the May issue of Consumers C- operation, is now available in pamphlet for..i, with a bibliography of material on coopera tive recreation, for 5c. The Spider Web, a 3 act play, by Ellis Cowling . _ . __ . _ .. __ .. _ ....... _ ... _ ... _ .-ii The Answer, a 3 act play, by Ellis Cowling .2Ü Two One Act Plays, Bills Cowling .............. .13 POSTERS Organize Cooperatives. 26"x38" Green, 5 for $1 .................................. Cooperative Principles, 19"x28" Blue. 5 lor $1 ...................................... Cooperative Ownership, 19"x28" Mulberrv. 5 for SI ............................ .... .20 .... .21 FIMIS "The Lord Helps Those — Who Help Eacli Other," a new 3 reel, 16 mm. film of the Nova Scotia ml alt éducation and cooperative pro gram, produced l>y the Harmon Foundation. Excellent photography. $4.50 per day, Î2.25 addition»! showings, $13.50 per week. "A House Witliont a. landlord," a new 2K reel, 10 linn, silent fllrn on the Amalgamated Cooperative Houses in New York City. Kent- al $,'!.!)() per showing, $1.50 each additional showing, $10.00 per week. ••('l!isi>iiis IhiiKis." 1(i mm. silent, two reel Him showing how cooperation is taught in 111! schools t>f France. Won the Grand Prize HI the International Exposition, Paris, 19S7. ••When Muiiliintl Is Willing," a 16 mm. silent three-reel film, with English titles, of coop erative stores, wholesales and factories i« France. Rental: Bach of three ahoye $3 per day. $1J for each additional showing or $10 per week Fire Insurance ON YOUR FURNITURE SAFE - ECONOMICAL - COOPERATIVE Workmen's Mutual 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. Consumers' Cooperation What an Opportunity! Editorial Advisory Council Progress in Ohio L. F. Warbington E.C.W.'s First Ten Years George Tichenor Scandinavia Synthesizes individual Liberty and Group Unity League of Campus Co-ops Formed Robert Colwell and Lee C. Poole REVIEWS The Consumer Awakens: Glodys Talbott Edwards Cog or Collaborator: Merlin Miller Co-op Housing in Sweden: Abraham Perlstein August 1939 CALENDAR OF COMING EVENTS lour of Nova Scotia Cooperatives, opens with Rural and Industrial Conference at Antigonish, Aug. 21-23 and con tinues with a tour of Eastern Nova Scotia and Cape Breton to Sept. 2. , Central States Co-op Education Confer ence, Circle Pines Center, Mich., Sept. 2-4. Regular Quarterly Meetings Board of Directors, Cooperative League of the U.S.A., Hotel Morrison, Chicago, Sept. 6-7. National Cooperatives, Hotel Morrison, Chicago, Sept. 8. Eastern Cooperative Eeague, A.B.C. Cam paign and Fall Membership Drive, Sept. 25 to Nov. 17. SUBSCRIBE TODAY V Special articles on cooperative business and education V Important news on American cooperative progress V Editorial comment on the issues .facing the cooperatives VReviews of new cooperative books Written so "he who runs may read" CONSUMERS' COOPERATION $1 per year; 27 months for $2 Send subscriptions to THE COOPERATIVE LEAGUE 167 West 12th Street, New York City THE COOPERATIVE LEAGUE 167 West 12th Street, New York City 608 South Dearborn, Chicago DIVISIONS: Auditing Bureau, 167 West 12 St., N. Y. C. Medical Bureau, 5 E. 57 St., N. Y. C. Design Service, 167 West 12 St., N. Y. C. Rochdale Institute, 167 West 12 St., N. Y. C. Clusa Insurance Service, 135 Kent Ave., Brooklyn, N. Y. AFFILIATED REGIONAL COOPERATIVES Name Central Cooperative Wholesale Consumers' Cooperatives Associated Consumers Cooperative Association Cooperative Book Club Cooperative Distributors ' Cooperative Recreation Service Cooperative Wholesale, Inc. Bastern Cooperative Wholesale Farm Bureau Cooperative Ass'n Address Superior, Wisconsin Amarillo, Texas N. Kansas City, Mo. 118E. 28 St., N.Y. 116E. 16 St., N.Y. Delaware, Ohio 2301 S. Mil lard, Chicago 135 Kent Ave., Bklyn Columbus, Ohio Publication Cooperative Builder The Producer-Consumer Cooperative Consumer Readers Observer Consumers Defender The Recreation Kit Farm Bureau Mutual Auto Insurance Co. Columbus, Ohio Lansing, Michigan St. Paul, Minn. Seattle, Washington Indianapolis, Ind. Minneapolis, Minn. Chicago, 111. Walla Walla, Wash. Harrisburg, Penn. Indianapolis, Ind. 227 E. 84th St., N. Y. E.C.L. Cooperator Ohio Farm Bureau News Ohio Farm Bureau News Michigan Farm News Farmers' Union Herald Grange Cooperative News Hoosier Farmer Alidland Cooperator Penn. Co-op Review Farm Bureau Services Farmers' Union Central Exchange Grange Cooperative Wholesale Indiana Farm Bureau Coop. Association Midland Cooperative Wholesale National Cooperatives, Inc. Pacific Supply Coopetative Pennsylvania Farm Buteau Coop. Ass'n United Cooperatives, Inc. Workmen's Mutual Fire Ins. Society DISTRICT LEAGUES Central States Cooperative League 2301 South Millard Ave., Chicago, Illinois Eastern Cooperative League 135 Kent Ave., Brooklyn, N. Y. Northern States Cooperative League Sexton Building, Minneapolis, Minnesota California Co-op Education Ass'n 1659 E. 68 Street, Los Angeles, Cal. Northern California Co-op Council 1715 University Ave., Berkeley, Cal. National Cooperative Women's Guild Box 1000, Superior, Wisconsin CONSUMERS' COOPERATION OFFICIAL NATIONAL JOURNAL OF THE CONSUMERS' COOPERATIVE MOVEMENT •KB.» Ml «me« PEACE • PLENTY • DEMOCRACY Volume XXV. No. 8 AUGUST, 1939 Ten Cents "Helz-A-Poppin" in America! "Mother Poisons Five. Mrs. —————— fed capsules of poison to her five children today and slashed her throat with a butcher knife as they began to collapse . . . her husband was without a job." "Heir to Riches, Jobless, Ends Life With Gun. kill myself.' The youth's father collapsed." said 'I'm going to "Sick Family Lies Down to Keep Home. An 82-year-old invalid, her sick daughter and a paralyzed grandson started a "lie-down" strike in their home here today after deputy sheriffs in an eviction attempt removed all furniture but their beds." The right to work and the right to an income are as fundamental as the right to life and the right to liberty and must be made realizable for all in America soon or there will be "Helz-a-poppin" everywhere, and not just in a musical comedy and in newspaper headlines. The denial of the right to work to millions, by both business and government is fast becoming unbearable. It is a lot later than most people think. * * * PRIVATE-PROFIT CAPITALISM IS BOTH SPIRITUALLY AND PRACTI CALLY BANKRUPT. IT NEITHER WILL NOR CAN PROVIDE JOBS INCOME OR OWNERSHIP FOR ALL THE PEOPLE. IT MUST BE SUPER SEDED BY COOPERATION, JUST AS CAPITALISM SUPERSEDED SERF DOM AND SERFDOM SUPERSEDED SLAVERY. IT IS TIME FOR AMER ICA TO ACT FAST IN ORGANIZING COOPERATIVES. An organ to spread the knowledge of the Consumers' Cooperative Movement, whereby the people, in voluntary association, purchase and produce for their own use the things they need. Published monthly by The Cooperative League of the U. S. A., 167 West 12th St., N. Y. City. E. R. Bowen, Editor, Wallace J. Campbell, Associate Editor. Contributing Editors: Editors of Cooperative Journals 1330 /93/ /W 1933 I93Ï /9Jf /936 1937 *E.C.W.'s SPECTACULAR AND SOUND GROWTH The two organizations, E.C.L., the educational, and E.C.W., the economic, are considering merging into a unit organization as is general in America. 117 tory had grown from practically nothing to $91,000 in the New York and new Boston offices. The pan-racial flavor, which happily characterizes E.C.W., was present from the start : Finns, whose tenacious societies were scattered through Brooklyn and Massachusetts; Jews, with their bakeries and later Cooperative apartment houses in New York; Italian textile workers from the turbulent city of Lawrence; Russians, and "white collar" consumers of Anglo- Saxon stock. But faces were friendly —proving that the welding power of an idea is more potent than the division of tongues. These were charter members: Amalga mated Clothing Workers Service, Inc., Bronx, N. Y. ; Consumers' Cooperative Services, Inc., New York; Cooperative Bakery of Brooklyn and East New York, Brooklyn; Cooperative Trading Associa tion, Brooklyn; R. W. Cooperative Asso ciation, Brooklyn; Spencer Cooperative Society, Spencer, N. Y. ; United Coopera tive Society, Maynard, Mass. ; United Co operative Society, Norwood, Mass. ; Work ers Cooperative Union, Stafford Springs, Conn.; and Workingmen's Cooperative Bakery, Lynn, Mass. The panic of '29 tried every Coopera tive with fire. Cash policies became more and more difficult. But in 1930 the Wholesale was able to move into separate offices of its own at 112 East 19th Street, after living for several months with Co operative Trading Association, where Adolph Wirkkula, former manager of C.T.A., was the wholesales first full-time manager,,and later had space at Consum ers' Cooperative Services. When the death of Cedric Long, in 1931, deprived the National League and the Eastern States Cooperative League of their mutual secretary, the E.S.C.L moved, after an interval, into the offices of the Wholesale. Summer institutes and annual conferences were carried on de terminedly, and delegates pledged "that struggling societies would not only hang on but would increase their trade and edu cational work." In January 1931, Leslie E. Woodcock was engaged as manager of E.C.W. For 11 years, Mr. Woodcock had been asso ciated with C.C.S., first as a member of the Eastern Cooperative Wholesale's Brooklyn Warehouse and one of the Co-op Trucks il E.C.W.'s Modern Testing Kitchen—Where Consumers Control Quality board and then as a staff member. Later, in 1933, he was to become Secretary of the Eastern States Cooperative League, uniting E.C.W. and E.S.C.L. still more dosely. The staff, from 1931, consisted of Mr. Woodcock, Sophie Benjamin, bookkeeper, and George Meakin. The office was one room, with several desks and a file. In 1934 dues of the E.S.C.L. had ac cumulated to the point where an educa tional director could be taken on, and R. L. Smith joined the staff. He had a desk and a typewriter and enormous am bitions which still keep ahead of an in credible variety of educational production. Two moves, in the same building, be fore 1936, added a little more privacy, if not much more room. The staff fitted into the scenery about as cosily as eggs in a carton. All the while an undertow was setting in which would sweep the Wholesale out into larger activity. While the depression curtailed purchases of * societies, it was slowly awakening interest of the public in Cooperation. Most of E.C.W. business 118 Consumers' Cooperation August, 1939 was brokerage, but a slowly growing num ber of items were passing through the of fice to be packaged with the Co-op label, and after a while it began to seem that one couldn't rise from his desk without sardines, gelatine, macaroni, brown sugar and later, the famous soap, tumbling out of his lap. The tour of Kagawa through the coun try had a stimulating effect upon the or ganization of new societies, and soon calls, visits and demands were being made that E.C.W. expand its services to meet an obvious and logical need. Until 1935, the Wholesale had concen trated its activity as a broker for a limited number of staples which were common denominators of the tastes of different groups. But new groups were clamoring for more direct wholesale service. A meth od of operation permitting delivery in the metropolitan area was set up. By the fol lowing March, shipments were being made to points as distant as Jamestown, N. Y. and Philadelphia. The joint annual meeting of E.C.W. and E.S.C.L., in 1936, was held appropri- 119 ately at Maynard, home of one of the pioneer societies, now sharing in the tri umph of an assured period of growth. For the first time societies in every Atlantic state from Maine to Delaware were repre sented. Both the League and Wholesale were authorized to open a joint office in Boston, and the word "States" was ofii- cially dropped from the League name. T. G. Castner joined E.C.W. in April, 1936, as buyer, bringing the technical skill of a physicist to the problem of increasing and improving Co-op labeled products. Mr. Castner had been one of the organ izers and president of the New Jersey Consumers' Cooperative. Most significant of all events in the his tory of the Wholesale was the decision, in 1936, to go into warehousing. A crisis had been reached so that it was no longer possible to handle a larger stream of gro ceries through the 19th Street office. Sev eral possibilities opened. The Wholesale might go into the distribution of oil and gasoline where a wide margin was tempt ing. Or it might turn its back upon the questionable venture of warehousing and stiffly resist going beyond a brokerage bus iness. But after a six months' study the opening of a warehouse was authorized. A Warehouse at Last With trepidation, 6,000 square feet of floor space was taken at 112 Charlton St., New York, in August, and the Boston office, likewise with warehouse facilities, was opened at 238 Milk St., in October. Growth pursued relentlessly. Space on Charlton St. was outgrown by June, 1937, and a third floor with additional 3,000 square feet was taken. Shipments were being made as far west as Pittsburgh, north to Plainfield, Vt, south to Wash ington, east to Boston, and by water to Florida. In February, 1938, the Farm Bureau Mutual Automobile Insurance Co., a Co operative, entered New York, under the sponsorship of E.C.W. and Mr. Wood cock was elected a director in April, 1939. A further link was established between farm and urban cooperators. In March, 1938, Waino Linna joined the staff as field man, bringing highly technical skill, enthusiasm, and 10 years' experience as a manager in C.T.A. and elsewhere. The first truck was bought in July, 1938, and in September, the move to 135 Kent Ave., Brooklyn, was necessi tated for need of space. Triple Warehouse Space Three times as much space (27,500 square feet) was available in the two-story brick warehouse, facing the river, with a railroad siding and easy access to Man hattan. One of the most important fea tures was installation of the now famous testing kitchen, which not only helps create standards for Co-op label products, but tests every shipment intended for dis tribution. Mrs. Vianna Bramblett, highly trained dietician with a master of science degree, came in October to this first test ing kitchen ever operated by a Coopera tive Wholesale. In January, 1939, a second truck was bought, further facilitating shipments and lowering freight costs. The Boston office moved in April to 47 VITAL STATISTICS OF EASTERN COOPERATIVE WHOLESALE All figures are for the period indicated, or as of the last day of the period indicated, except the CO-OP Lahel figures which are as of May 30 of each year. Total Income .. Net Earnings .. Capital Stock .. Inventory ........ Membership — E.C.W. ...... CO-OP Labels "Loss 120 i'. $203 $ 1 $ 1 * 129 ,756 ,000 ,700 10 4 1930 314,627 «3,704 1,800 132 10 4 19)1 290,305 1,645 1,800 843 10 4 1932 223,925 4 3,800 238 10 4 1933 183,582 11 3,800 202 10 4 1934 187,835 778 3,800 126 10 4 193) 206,515 88 5,516 1,226 9 15 Cor 1936 285,513 «1,617 6,911 17,979 14 20 isumers 1937 533,135 2,910 11,935 56,306 70 155 ' Coot 1938 717,415 8,789 23,614 87,573 103 283 >eratioi Farnsworth St., a two-story brick ware house with 16,000 square feet — about double its former size. Since the begin ning this office has been under the direc tion of Waldemar Niemela, former man ager of the United Cooperative Society of Maynard and the Cooperative Trading Association of Brooklyn. His preliminary study preceded the opening of that office in 1936. Otto Rossman is an educational field man of the E.C.L., operating from the Boston office. For five years he was on the auditing staff of Central Cooperative Wholesale, and later manager of the Rock, Mich., Cooperative. He came to E.C.L. in November, 1938. In February, 1939, George H. Tichenor was hired as Editor of E.C.W.'s newspaper THE CO- OPERATOR. The initial staff is now com plete with Manager, Buyer, Educator, Edi tor and Fieldman and the future of E.C.W. in the key, urban distribution city in America is unpredictable. May it grow soundly and steadily to its possibilities. ADVISORY COUNCIL PROGRESS IN OHIO (EDITOR'S NOTE: The 400 Advisory Council in Ohio stem directly out oj Nova Scotia L. F, Warbingtoii Educational Director, Ohio Farm Bureau Cooperative Assn. larly. They should supply social and edu- tn Uhio stem directly out o] Nova Scotia ,.' , ' . . J- * ' . : 7 Study-Clubs. Ohio's General Manager, Murray cational training, and provide means for D. Lincoln, first ivent to Nova Scotia in the summer of 1935. L. F. Warbington, Educational Director, was a member of the Coopérative Leagues tour in 1938, while Carl Hutchinson oj their educational staff had made the trip previous to joining the Ohio organization. Ihi, year five, or halj oj Ohio's fieldmen are going on the tour and the other hol] will go next year. Ohio has laid plans to organize 1,000 Discussion Councils during the coming jail, winter and spring. The latest step taken is the organization oj the Advisory Councils into County Cabinets similar to Nova Scotia's Af filiated Study Clubs. If you ivonder why Ohio's Insurance and Commodity Cooperatives are de veloping so rapidly this article describes one oj the basic reasons.) AFTER two and one-half years' ex perience with discussion groups, we are convinced that they form an excellent base upon which to build an educational program for the Cooperative Movement. The discussion groups or Advisory Councils, as we call them in Ohio, con sist of twelve families that meet each month in the family members' homes. Their evening's program is so varied that it satisfies every individual's liking. It consists of music, business, discussion, recreation, and refreshments. We feel that discussion groups should be organized uniformly and meet regu- August, 1939 individuals to develop the cultural side of life. The discussion period should in clude the program, aims, and philosophy of the organization, and should also be a means of supplying cooperative recrea tion, which can be considered the lubri cant of an organized group. The mem bers should work in an atmosphere of commonness ; no one of the group should be esteemed as a guiding light, but the group should feel that each is helping the other as well as himself. Small Groups Develop Leadership We have discovered that the Advisory Council organizations form a method of leadership development. Many members and patrons who have not shown any great degree of leadership ability in the past are coming forth as desirable lead ers, and we feel sure that the opportunity that is afforded them in the discussion to express their ideas and to be a part of a group is largely responsible for this devel opment. Present leaders should, at all times, sense the possibilities of leadership and enthusiasm now lying dormant among members, which can be developed largely through small groups meeting together regularly and discussing matters of interest 121 within the cooperative as well as matters of a general nature. Now that we have gone through the experimental stage, and have more than 400 Councils, we are very anxious to pro mote the organization of a large number of additional Councils, and are willing to assume the responsibility of placing all interested people in a position to think and to help us build a worthwhile organi zation. This can be done through discus sion groups. Groups Coordinated Into County Cabinets for Action After a Council is organized, there is a time when the desire for action is evident. This must be recognized by the leaders, and when this desire becomes prominent, all the discussion groups in the county should be coordinated through organiza tion of the leaders of the parent Councils into a County Cabinet. There are quite a number of counties in our state that have organized Cabinets. At the first meeting of the Cabinet, a program of action is proposed by the members. This can be well termed a "blue print" to be followed by the organ ization. This proposed program consists of specific things that can be accomplished within the activities of the organization; for example, the proposed program of one county consisted of eight definite items to be carried out during the year. They were: 1. Organize twice the number of Coun cils that now exist in the county 2. Organize a mixed Chorus 3. Organize a youth band 4. Set up an additional distribution point for cooperative service 5. Raise $5,000 additional capital stock 6. Build a community hall 7. Organize Thrift Clubs in each Council 8. Supply all Councils with discussion material on Cooperative Medicine After this program was proposed in the Cabinet, it was discussed in all Advisory 122 Council meetings in the county. This is very important as it gives all the members of the groups an opportunity to be a part of the program by suggesting changes and offering new ideas. After the program was proposed by the Cabinet and considered by the members, it was then drafted into a resolution and submitted to the County Board for adop tion. At this point the Cabinet plays an important part—at each of their regular meetings they take up some item of the adopted program for discussion, and be fore adjourning, the item discussed is on the road to definite execution because ways and means have been discussed and provided by the Cabinet. Reports of each Cabinet meeting are always discussed at each local Council meeting, giving all the members of the Council an opportunity to assist in carrying out the program. A few of these Cabinets were organized in the early part of 1939, and have almost accomplished in seven months' time what they expected to do during the entire year. This is largely because they had a "blue print" to follow and the Cabinet provided the machinery by which this could be accomplished. Leaderships' Responsibility To People It is my firm conviction that cooperatives will succeed to the degree that leaders have the ability to assist in developing people. Members of an organization first must be conscious that they are a definite part of the Cooperative Movement, and have some definite responsibility to as sume rather than having too much faith in leaders to do for them what they should do for themselves. Summary Here, in brief, are the vital factors of the Ohio Advisory Council program: First, organize as many discussion groups as it is possible to organize. Second, through this means people will educate themselves and become familiar with the workings of the Movement. Third, action must always follow in an informed group. This can be accomplished through tying together all the discussion groups so that whatever action is taken is on a uniform basis throughout the whole region. I can not lay too much stress upon the personal attention that the Home Office gives each individual discussion group. Sometimes their requests seem trivial to the leader ship, but are very important to those who request. The time and effort spent on this personal attention builds morale which is so necessary in any movement. We should at all times be alert in dis covering new techniques that will influ ence people to participate. By participa tion, the interest of members and patrons increases. If they can feel some degree of individual achievement, that tends to draw that individual much closer to the organi zation. The discussion group method is one which provides opportunity for par ticipation in doing some thinking, plan ning, and finally acting in whatever or ganization he is interested. Another means which will get a great number of people interested is discussion circles during mass meetings. Members should no longer be contented with the "teacher" or "speaker" type of program. Meetings should always be concluded by forming discussion circles and having each circle discuss questions that are raised dur ing the speaking program. We will soon discover that many of our meetings that have been very "dry" will become interesting because the rank and file of those attending the meeting have been given an opportunity to express their ideas of what they think should or should not be incorporated in the program of their organization. LEAGUE OF CAMPUS CO-OPS TAKES PERMANENT FORM AT BERKELEY CONFERENCE Robert Coiweii and Lee C. Poole MEETING in the halls of the Univer sity of California Student Coopera tive Association and within a ferry ride of the Treasure Island of San Francisco's Pacific International Exposition, sixty representatives of campus co-ops on the Pacific Coast took steps to make a work ing institution of the federation they set up three years ago. In addition to putting the Pacific Coast Students' Cooperative League on a permanent basis, the dele gates established a closer bond of fellow ship, a common pin, and a pass between their respective cooperatives for the 3,000 students who are constantly increasing their social and economic values through cooperative living. The conference which was held in Ber keley June 13, 14 and 15 was called with this purpose: "To enable the free ex change of ideas on the problems con fronting the various institutions arising out of initial organization and operations ; and to formulate and recommend tech niques which are aiding the existing co- Consumers' Cooperation August, 1939 operatives, and which will be of value in opening avenues for concrete action in the cooperative movement for students after graduation." Some sixty students at the conference represented student cooperatives both old and new on the campuses of University of Washington, Washington State Col lege, University of Oregon, University of California, University of California at Los Angeles, Texas Agriculture and Mines, San Mateo Junior College, and College of the Pacific. Dr. George Hedley, chairman of the Western Summer School for Workers, who opened the conference, urged the conferees to understand that the coopera tive movement is an endeavor to improve upon the "recipe" of economics so as to make a more palatable product for the greater number of mankind. Meeting Immediate Problems The opening address was followed by panel and discussion groups on some of 123 the more important problems of student cooperatives such as: (1) GOVERN MENT IN STUDENT COOPERA TIVES, (2) FINANCE AND AC COUNTING, (3) SOCIAL AND RECREATIONAL PROGRAMS, (4) ADMINISTRATION PROBLEMS, and (5) EDUCATION IN COOPERA TIVES. These discussion groups were par ticularly important because they brought out personal experiences in existing stu dent cooperatives. This kind of partici pation made these groups the most earn est and constructive feature of the con ference. Creating Permanent Organization The conference was climaxed by a general meeting which created a perma nent "PACIFIC COAST STUDENT CO- OPERATIVE LEAGUE," headed by a temporary board of five directors. This league will have the University of Cali fornia as headquarters; will hire a secre tary and proposes to organize the student cooperatives into an active working body with facilities for affording continual ex- • change of information among the organ ization members. Support is to come from League dues of lOc. per member from each of the affiliated cooperatives. Elected to the temporary board of directors were John Essene, UCLA ; Gordon Miner, UC ; E. B. Ingham, WSC; R. W. Birchfeld, Texas A. & M.; Robert Colwell, UW; Loraine Barthlett, UC; Alvin Hunter, UCLA; and Anna Mae Halvorsen, UO. The meeting decided that the findings of the conference should be prepared and printed in the form of a "handbook" for student cooperatives. This handbook with its recommendations will be finished soon. The conference was an example of the growing strength and importance of the cooperative movement in general and the student phase in particular. The discus sions, friendships, and business pointed toward the unification of the heretofore individual cooperatives and the banding together into a permanent body for fu ture growth. Viewed in this light the con ference was a distinct success. In spite of its weaknesses it laid a pretty solid foundation for the future strength of the student cooperative movement on the Pacific Coast. The next annual confer ence will be held in June, 1940 on the campus of the University of Oregon at Eugene, Oregon. WHAT THE CO-OPS ARE DOING I Indianapolis—The cooperatives took an important step into the field of bank ing when the Indiana Farm Bureau Co operative Association, together with a number of other cooperatives, credit unions and other non-profit organizations purchased the controlling stock of the Citizens State Bank at Beech Grove, In diana, last month to facilitate financial operations of these institutions and to put a definite plan and system behind Indiana co-op financial operations. Superior, Wisconsin — Central Coop erative Wholesale, acting on the instruc tions of its last annual meeting, has estab lished its own testing kitchen to check on the quality of all goods handled by 124 the cooperatives; purchased new equip ment for its coffee roastery and feed mill; and is adding four new men to its educa tional staff. Minneapolis — Thirteen new stores have been opened in Minnesota and Wisconsin since June 1 in Midland's new chain of co-op grocery stores. Five more will be added before the end of August. New York City—Deciding that Gov ernment grades are not high enough, the grocery buyers committee of National Co operatives, purchasing goods under CO OP label for five hundred co-op stores, voted at their meeting here to require that only the top half of the government brack ets would be acceptable