3. American Cooperatives

...Through the growing activity of its New York headquarters, which issued leaflets, supplied speakers and got publicity, snd also through its geographically rotated biennial congresses, it developed national character and outlook among its constituent groups...

...Most of these stores went down in the panic of 1873 and the ensuing depression...

...This, of course, retards the wholesale's expansion into new lines of distribution and into production...

...A substantial minority, however, are sizable, carry also fresh vegetables, fruit and meat, are-well located and of good appearance...

...Thus far, its oole productive venture by itself was the installation in its warehouse last year of a coffee roastery, at a cost of $11,000...

...Within a year there were three hundred "councils" with local stores, and some forty thousand members...

...We must blanket th* cities with cooperative enterprises," Murray D. Lincoln declared...

...This comparison speaks for itself...

...The next urban attempt was al«o made by working folk, soon after the Civil War ended...

...Unlike the Rochdale enterprise it lacked the cooperative fundamentals essential to durable success...

...The election of Murray D. Lincoln, an Ohio farmc r-cooperator, to succeed Dr...

...Kany local fanners' unite and all their regional head-caarters are located in towns and cities for convenience, |al are not of urban origin...

...In both regions they i stab lished cooperative stores which were so well conducted and successful that they stood as object lessons for native Americans to observe and emulate...

...Labor unions task beta eagerly...

...This gives a paper average of 180 per unit...

...Non-farmer groups were formerly called consumer co-op* while all the farmers' groups, both marketing and purchasing, were classed u producer cooperative* and fanner* were habituated t* think of themselves only a* producers...

...In 1918 at Springfield, Illinois, they brought together several hundred persons connected with about that msny groups in the "First American Cooperative Convention...

...Associated Co-operatives of California, which became statewide only this year, has a wholesale volume of about $250,000...

...The American Federation of Labor endorsed cooperation, appropriated $50,000 to advance H, appointed a lecturer and a Aeld worker to interest eaaathnsaj craft union...

...Bereft of wholesale aid, most of the local units faded out, though some survived as scattered remnants...

...Likewise it began with working people led by a tailor named John Kaulback, who formed in Boston, Mass., a buying club which the following year blossomed into a store, Spresding through New England to other states, in seven years thi* Workiagmen's Protective Union had tea* four hundred "divisions," each with its retail store...

...and though it carries agricultural supplies, It deals primarily in food, clothing and other consumer good...

...The countrywide total then would be 500 urban non-farmer units with 90,000 members...

...0 • • I.\ 1917 the Finnish units of the north central section formed a regional federation...

...Waukeegan, 111., 1910, and another founded by Czech immigrants in Dillonvale, Ohio, 1908, are today the largest and best examples in America of self-reliant cooperative evolution from simple beginnings into rounded departmental enterprises, each serving a whole community and the surrounding countryside...

...Central Cooperative Wholesale...

...This wss followed up at Chicago in October by the first National Urban Cooperative Development Conference, which got down to practicalities of Adequate financing and competitive efficiency, and challenged urban cooperators to catch up with the farmers...

...But the principal contribution in quantity and qualify was made by Finnish immigrants, most of whom settled in rural areas of the north central states, the rest in eastern towns and cities...

...Four regional wholesales and one would-be national sprang up, but were too mushroomy and top heavy to weather the di pression...

...They followed the Rochdale plan of patronage returns bat apparently allowed voting by shares, instead of holdfast to the Rochdale principle of one vote per member...

...Bowen, who became general secretary in 1934, and the versatile activity of Wallace J. Campbell as assistant secretary...

...The second urban wholesale is Central States Cooperatives in Chicago, dating from 1936, which serves Illinois, Indiana, Ohio and southern Michigan and has an annual volume of about $500,000...

...For ten or fifteen years its attention was focused largely on fostering urban cooperation...

...Urban" is used here aa equivalent to non farmer...

...Poorly organized and conducted, the isolated units thus arising needed regional and national wholesales to provide mass resources and momentum...

...One society has six stores, three have three apiece and two have pairs...

...Some, however, did so well financially that a few insiders bought up the shares and turned them into stock companies...

...Nor did urban co-ops formed by native middle-classers pan out pleasingly New sources of cooperative help, however, were at hand...

...Hi'* urban population to much exceeding that of tht farmt, urban cooptrativet might naturally be expected to outnumber thote of tht farmert...

...The msjority correspond to modest neighborhood groceries...

...Soon afttr 1900 certain groups of European immigrants familiar with cooperative methods in their homelands began ijuite naturally to organize cooperatives in the USA...

...There sre probably not a great many, simply because not many could carry on successfully without wholesale facilities...

...So in retrospect we see that successive attempts in urban cooperation wire made by labor groups, with disappointing outcome...

...At the next meeting in 1920 the League was made a representative body with broad educational and promotive functions...

...The Brotherhood of Locomotive Engineer* formed stores In railroad centers snd Mai especially to bring wage-workers and farmers together and close the gap between producers and con-eessers of feed...

...It took a leading part in organising National Cooperatives as a super-wholesale to serve rural and urban groups alike...

...By coincidence urban cooperation began in America In the same year (1844) that the Rochdale pioneers opened their famous store in England...

...This accounts partly for the fact that since then, until very recently, organized labor has not taken an active part in the American cooperative movenunt...

...But though moat of it* members are small farmers, many of them live in towns...

...but when things don't go well, they talk and act a* though cooperative* should be succored and sustained by reason of innate superior virtue...

...Its annual operating volume has grown rapidly to about $4,000,000...

...But jointly with some farmer*' purchasing associations it has invested in e flour mill, and through supporting membership in National Cooperatives, incorporated In 1933 and centered in Chicago, it shares in that organization's developing lines •f production which to date include cosmetics, cedar shingles and milking machines...

...Nominally this is clsssified as a farmers' purchasing association, and was therefore counter as such in our second article...

...But it soon proved much too rapid and far from safe...

...The answer, in this writer's judgment, is YES...

...th* miun auhatituted an "American Plan" of their own, under which the wholesale ran all the local units, selected their managers, handled their ordering and bookkeeping...

...Well and good...

...Of course, urban conditions are less stable and more difficult than thorn of farming area*, and points of competition are more numerous...

...So, everything conaidered, urban is the beat word for cooperative* which original* among town and...

...Cloquet, Minn., 1910...

...A score or so are really outstanding in stature and excellence...

...It appears reasonable to assume that for the rest of the country en estimate equal to the numbers given for the E.C.W...

...Total membership of the 250 units served by E.C.W...

...Meanwhile a cooperative fever, affecting urbanites of the so-called middle class, broke out in a spotty rash of co-ops in New England, the Middle West and California...

...In this recent period the League, whose main headquarters are now centrally located in Chicago, with branch i ffires in New York and Washington, has rendered excellent service in bringing farmers' purchasing cooperatives and urban co-ops into closer understanding and collaboration, thereby helping to make the farmers increasingly consumer-minded and the urban ro-opers somewhat more realistic...

...But the blanket must be stoutly woven warp and woof to last...

...A ' * ' t\ THIRD PERIOD of shortlived urban endeavor ssosouiuiid early -in the World War of 1914-18 and continued until the depression of 1921-23...

...Many local units have fewer members, as some are just buying clubs and others have only small part-time stores...

...Three of those stores—in Maynard, Mass., 1907...

...area where urban co-ops are meet numerous —namely, 250 units with 45,000 members—would suffice...

...Well than, art urien coeperatoro thtm-teivet blamabU for the comparatively meager and mostly poor to middling results thus far obtained...

...Especially through individual leaders it ha* done much to encourage and assist sound urban cooperation among native Americans...

...He and his associates forthwith set out to discover and round up as msny cooperative groups as they could find throughout the country...

...But i not sad of fostering a true Rochdale federation of **al autonomous unit* which would own and control the weal—Is...

...The prime movers were idealistic zealots who had unbounded enthusiasm but limited common sense...

...Now at long last, thanks to the negative lessons of past failure, timely immigrant aid, League nurture, farmers' tutelage, and various incidental factors, American urbsn rooperstion is making some headway...

...is estimated at about 45,000...

...There are today three urban wholesale federations, of which much the largest is the Eastern Cooperative Wholesale headquartered in New York with sub-quarters in Boston and Philadelphia...

...But as specific instances demonstrate, these obstacles can be overcome successfully...

...As respects the baste cooperative principles and working plan, they hsve been amply proved to yield Irat-iate result* when correctly and competently applied...

...It began in 1929 as a buying agency for ten units, became a distributing wholesale in 1936, and now serves about 250 unit* in the eleven Atlantic states from Maine to Maryland, and the District of Columbia...

...That started the national co-op ball a-rolling...

...3. American Cooperatives By John Daniels Trial and Error — and Progress HAVING seen how farmer*' cooperatives grew from« native s-rassrooU to their present strength and stature wa turn to urban co-ops, which in comparison an like a boy still in knee pants bat itching to get Into long trousers and grow up...

...They fail to realize that no matter how excellent cooperation t idealt may bt, it mutt nectttttily be founded upon a ootid economic bate...

...Indeed, pressure of volume and need for operating funds have for some time outrun its share capital subscribed by local units, and this shortsge has awn pel led it to borrow large amount* from commercial and cooperative quarters...

...They cannot decide whether a co-op should be • self-supporting enterprise or an object of philanthropy...

...Combined annual volume of the three urban wholesales is only $4,750,000...

...And from the outset it has given staunch support to th* Cooperative League of the USA...

...It is s state of division and vacillation— a house divided against itself...

...James P. Warbasse, a distinguished surgeon, author and editor who had become deeply interested in consumers' cooperation here and abroad, was elected president, thereafter headed the society for a quarter century, and now aa emeritus holds a place of high honor and Influence in national and international cooperative councils...

...On the surfce this is shown by facts and figures of w recent growth...

...The United Mine Workers opened many **ort in the Middle West and launched a Central States Cooperative Wholesale in Chicago...

...Besides the big difference in overall size between them and the rural groups, there is a striking contrast In evolution...

...Why tuch reverte ditpanty...

...Instead of **Uing good* at current retail price* and ptriodxootty returning net taring* to member* in proportion to tkoir patronage, it told at close to wholesale toot, used tekat saving* there were to pay dividends on ihrnr**, and to had little or nothing left for operation and expantion...

...In the light of hit own experience and observation outside and inside, he has been compelled to conclude that far too many urban coo aerator* have a state of mind regarding cooperation that makes mors for failure than success...

...Warbasse as president, betokens and furthers this trend...

...When thing* go well, they talk cooperative economy of abundance...

...No recent figures for number end membership of local units affiliated *ah timer two wholesale* be v. eons* to the writer'* attention, nor are a*y sue- Bguree available for scattered unaffiliated urban co-ops elsewhere...

...Seeing farmers organize as Patrons of Husbandry (the Grange) these city people set themselves up as Sovereigns of Industry...

...The wholesale failed, was reorganized, tried again and then gave up the ghost...

...city people...

...But in the last decade many farmers' purchasing associations have become so consumer-conscious and have gone so far in adding groceries, household appliances and other so-called consumer goods to their store supplies, that this distinction i* really obsolete...

...Fortunately there are signs that urban cooperators are now becoming more pragmatic A special meeting of cooperative leaders was held last May "to get at the real facts about building city consumer co-ops" which should be "fully competitive...

...Many units are considerably behind in their sub-acriptioii quota* proportioned to their volume...

...The rise of farmer*' cooperative* is a aujor American epic But the story of urban co-ops heretofore has been an elegy—in minor key...

...But then it Buffered division itself and succumbed to stress and strain with the onset of the Civil War...

...Now compare these figure* with those for the seventeen leeding formers' purchasing wholesales: i. e. wholesales a* of 194s: 2,600 member units, a conservatively estimated membership of 1,250,000, and operating wholesale volume upwards of $275,000,000...

...This league came Into being in 1914 at a meeting lit Brooklyn, N. Y., of cooperative intellectuals and enthusiasts...

...The argument was that self-governing local groups were too slow and inefficient, and that this new plan would promote the movement rapidly and safely...

...In the last ten years it has dravyn much larger support than before from farmers' purchasing associations,^ owing in good measure to the constructive work of K It...

...If perchance anyone thinks the foregoing urban figures are below the facta, our estimate can be doubled without appreciably changing the scales...

...Czechs, Poles, Italians, Jews and others formed local units here and there...