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MCMXIII ''■■4C Copyright, 191 3, by The Russell Sage Foundation PRESS OF WM. F. FELL CO. PHILADELPHIA INTRODUCTION INDUSTRIAL co-operation is regarded just now by many people as an antiquated and abandoned scheme. Its advantages are mod- erate in their dimensions and slow in their arrival. It calls for much patience and economy. It takes the world as it is and makes the best of it, in- stead of condemning it as incapable of good. For all these reasons co-operation is unattractive to those who expect a wholesale and immediate transformation of the industrial order. To such minds revolution looks more promising than evo- lution; patience seems more like a vice than a virtue; and economy seems to tempt the worker to submission rather than to inflame him with dis- content. "Beware of thrift," a revolutionist has said, "it is the workingman's enemy; let him spend what he gets and demand more." The world of industry, as it might be organized under co-operation, would in its outward form seem not unlike the Co-operative Commonwealth proposed by socialists^ CapiTafem — wotrtd'^be supplanted by common ownership; and the profits of production and distribution would accrue to the wage-earners themselves. Indeed, there are signs that this kinship of ideals is becoming recog- INTRODUCTION nized, and that co^Dperation may be accepted as a step to the sdcTaTist faith. Yet in their spirit the two^chernes JnYgJi itherto ha d little in cnm- rnon^ They have stood, as it were, near to each other, yet back to back, looking out on diflferent y'worlds. One has seen in the existing industrial order signs of hope and peace; the other has seeii increasing discontent, hopelessness, and war. One has welcomed a practical movement toward in- dustrial justice even though it may not realize all its dreams; the other has found such partial mea- sures obstructive of the comprehensive plan of re- volution and tempting working people to an ignoble peace. "To put money in the savings-bank," the English socialist Hyndman has said, " is to accumu- late orders on other people's labor and is no benefit to those who save"; and to the same effect Mr. Bax taught: "The socialists are radically at vari- ance with thrift. A man who works at his trade more than his necessity compels him, or who ac- cumulates more than he can enjoy, is not a hero but a fool from the socialist's point of view." It must be admitted that the history of co- operation in the United States goes far to encour- age either scepticism or hostility. With few ex- ceptions it has been the history of failures. Many co-operative enterprises which were launched with the most buoyant hope soon found themselves on the rocks of financial or moral ruin. The lessons which this volume teaches are, in the main, lessons of warning. It is not surprising, therefore, that the movement to improve the con- vi INTRODUCTION dition of wage-earners has, for the present, swept past the co-operative plan toward more radical and aggressive schemes. And yet the student of this world-wide movement toward industrial freedom finds his attention arrested by the fact that inal l_ the progressive countries of Eur ope t he co-ope rative system has play ed a notable par t b oth in advancing the welfare and in consolidat ing t he organization of wage-earners . In England, Ireland, Belgium, France, Italy, and Denmark, distributive stores, agricultural production, bank- ing, farming, building — all these types of co- operative industry, though they have different lessons to teach, present examples of mutual ad- vantage, popular education, and social hope. The single instance of the British organization with its membership in 191 1, of 2,640,091, in 1,407 dis- tributive societies, and its wholesale business of £35,744,069 of sales, and £1,000,518 of profits, is enough to demonstrate the capacity of plain people to conduct great business affairs, and to justify the conclusion reached by the leading economist of England, Professor Marshall, that it must be regarded as "unique among all the achievements that have been wrought by the working classes in the history of the world." " In the world's history," continued the same teacher, in his address at the Ipswich Congress, "there has been one waste-product, so much more important than all the others that it has a right to be called the waste product. It is the higher ability of the working classes, the latent and undeveloped, the vii INTRODUCTION choked-up and wasted faculties for higher work, that for lack of opportunity have come to nothing"; and this opportunity for latent ability, he maintains, the co-operative system in an un- equalled degree provides. One who attends an English or international congress of co-operators finds himself among an aristocracy of wage- earners, self-respecting, sanguine, and sagacious, demanding no social revolution to procure social justice, but securing by peaceful means the ad- vantages of capital and the moral education of self-help. In the presence of these facts it is impossible to dismiss co-operation as unimportant or ineffective. The history of abortive undertakings in the United States seems to point to unpropitious circum- stances or unfaithful administration rather than to inherent defects of the plan; and the student of ind ustrial c oiKiiJiQas__s eems called to inquire, n ot whether co-ope ration can succeed, but what the s pecial causes in the United States are which have made it so often fail . An arrangement of trade which has brought so much financial profit and so much self-respect to millions of hand-workers in m'an y~couirtn es may have an important place in the future of the United States, even though it be for the moment unappreciated or opposed. What, then, are the most elementary conditions of success in industrial co-operation? The first condition is that of independence. The co- operative plan must not be tied up with other and more dubious undertakings, whose failure may INTRODUCTION involve the wreck of co-operation. American history is strewn with these disaster s, in jwhich a practical ~plan of co-operation has shared the fate ora~visiohary or utopTafTFe-arrangement of society. Communism, vegetafiaiTrsirrr^ietism, feminism — ainiave annexed co-operation to the ir programs, and their abortive colonies have involved in their fall much disrepute for co-operative industry. Even in Great Britain at the present time co-opera- tion is not free from the peril of being merged in more ambitious plans of social revolution, and sharing the vicissitudes of a new social order. It must be firmly maintained by co-operators that their undertaking is enough in itself to command their loyalty. Prophetic as it may be of a new industrial wo rld of common ownership anf ad- ministration, its best contribution to that future will be made by its own sucj;es3„a.nd_by the demon- stration it .may_offerLjo^Jhe capacity of hand- workers to originatje and conduct great business. Co-operation is too admirable a scheme to be made a bait for converts to Utopia. The second condition is a considerable degree of fixity in residence. One joins a co-operative society asToFmigHTjoin a club, paying an entrance fee in the expectation of later profits. He has to wait for his dividend. The habit of buying at the co-operative store becomes gradually fixed in his family, and devotion to the cause is gradually strengthened by an increasing appreciation of ad- vantage. All this gathering tradition of loyalty is hard to develop among the ordinary conditions of ix INTRODUCTION American life. We are for the present a nation of nomads. Twenty-two per cent of the native popu- lation reside in states other than those in which they were born. A workingman and his family are often quite as likely to be somewhere else at the end of the year as to be settled in a permanent home. While the nation is thus on the march it is not likely to appreciate a form of business which has to be planted and watered, and to strike down roots be- fore it can bear fruit. This fluidity in population is, however, not likely to last. The evil of congestion has already supplanted in many communities the risks of migration, and the movement "back to the land" encourages an increasing permanence of tenure. Whenever, therefore, a reasonable fixity of residence has been reached, and families are likely to remain where they are, one obstacle is removed and an opportunity, on which other nations have seized, of free organization for mutual help, has arrived. A third condition of success in co-operation is the desire to save. The plan proposes a bonus on thrift. Distributive stores under the Rochdale system, instead of underselling other traders, ac- cept market rates and reserve the earnings for dis- tribution in proportion to purchases. The whole- sale societies are themselves the property of the distributive stores, so that the profits filter down through the stores to the individual members. Thus the expectation of a dividend at quarter day becomes the economic basis of loyalty. The co- operator cherishes the faith that a penny saved is INTRODUCTION a penny earned. When one compares this habit of mind with the prevaiHng ways of American Hfe, he sees a sufficient reason for many failures of co-oper- ation. The American people are beyond all com- parison, and from richest to humblest, the most unthrifty and extravagant in the world. Vulgar and ostentatious prodigality among the prosper- ous is matched by reckless improvidence and foolish expenditure among the poor. A luxurious woman may spend far too much on her clothes, but a working girl may spend everything. The food and drink of the rich often kill them; but the food and drink of the poor often rob them of both life and money. The very instinct of economy seems to great numbers of all classes discreditable. The chances of luck are more enticing than the modest returns of _ thrift. The wonderful resources of the country provide a constant temptation to extrava- gance, lavishness, and speculation. The sky looks so bright that provision for a rainy day seems quite superfluous. Sooner or later, however, even so light-hearted and unprecedentedly prosperous a people will have to learn the ancient lesson of econ- omy. Thrift will turn out to be more lucrative than luck. The chances of gain will diminish, and the rewards of saving will increase. Whenever that time arrives, in a neighborhood or a home, the co- operative scheme will attract fresh attention. It is the most obvious way of saving. It secures the participant from loss by leakage and makes his ex- penditure itself a way to save. Wholesome, steady- going, reasonably homogeneous communities are INTRODUCTION already in a position to utilize the experiences of other countries in this application of economy to trade, and may easily discover that they have at their command a great and often unsuspected waste product of modern life. A final condition of success in co-operation is even more fundamental. It is a supply of what the advocates of the movement call "co-operative men." The scheme depends not merely on eco- nomic thrfft, but on mtegrTty, lid^^efityrM interestedness. A completely self-seeking man cannot be a good co-operator. Obstinacy and wil- fulness have wrecked co-operative undertakings almost as frequently as deception and fraud. In other words, co-operation presupposes common sense, forebearance, an(r"coK)peratTve"spirit, and can be successful only where such qualities exist. Without them it fails as business; and with them its successes are something more than business successes. Co-operation is, in fact, a form of moral education, an expression of social ethics, a way of trade which might write over its stores: "Bear ye one another's burdens"; "Ye are mem- bers one of another." This condition of co-operation prescribes its limitations. It is applicable only to the more thoughtful and intelligent of wage-earners. The ignorant, the thriftless, and the short-sighted, will not be either tempted to embark in co-operative schemes or competent to handle them. Moral responsibility, a sense of loyalty, a willingness to sacrifice for the cause, are essential to business INTRODUCTION success. Yet this moral demand is precisely what gives to co-operation its peculiar place in the in- dustrial world. It trains people in the co-opera- tive habit of mind, so that for great numbers of wage-earners it teaches what the Christian Church might be expected to teach — the worth of the life in common, the membership of one body where the strength of each part is in the strength of all, the realization of self in the common good. The dependence of commercial success upon this ethical requirement inevitably limits the sphere of co-operative industry in the United States. Many communities, as this book indicates, have experi- mented with the system before they were fit for it. They have tried to make it an instrument of per- sonal profit, or a disguise for personal ambition, and the lack of a co-operative man has brought with it disaster to the co-operative plan. Many communities, on the other hand, have discovered either through success or through failure that good business is not inconsistent with moral idealism, and that the advantage of each may be found in the welfare of all. Even if the chequered history of industrial co-operation in the United States had taught no other lesson than this it would be worth reviewing, and would convey a lesson of self-re- spect and hope. I commend, therefore, to American readers the following pages, of whose trustworthiness, modera- tion, and accuracy one may be confidently assured. Dr. Ford's studies on this subject have covered five years, and are fortified by extensive research in INTRODUCTION rural social problems as well as in the economic and social problems of the city. The book has had the great advantage of a reading by the most dis- tinguished exponent of agricultural co-operation, Sir Horace Plunkett, who has expressed his judg- ment of it in the following words, with which I cordially concur: "What seems to me the pith and y substanceof this valuable economic survey is that co-operation, in the technical sense which apper- tains in Europe, is not very strong in New Eng- land, and this because the character of the people is intensely individualistic. At the same time, so far as the principle has been applied to pro- duction and distribution, both urban and rural, it has been proved to have all the merits which it is shown to possess in the Old World. . . . The writer's generalization from the foregoing facts is very shrewd and sound. He sees clearly that with the march of socialism it is immensely important to give full and fair trial to any rational alternative economic systems. He also realizes the essential dependence of co-operative organization on the idealism in the organizer. . . . Please send to the writer my congratulations on the very useful piece of work he has done." Francis G. Peabody Harvard University, October, 1912. AUTHOR'S PREFACE THIS investigation into the nature and scope of industrial co-operation in New England was begun in 1907, subsequent to a year's study of industrial problems in Europe. A recog- nition of the success of the co-operative movement abroad in stimulating and developing the latent powers of mind and character in men ordinarily socially diffident or aggressively selfish, occasioned this attempt to ascertain in how far industrial co- operation was practiced in New England and the result of its operation there. It was found advis- able to limit the research to the main types of co-operation: associations for the production and distribution of the immediate necessities of life. Four other local types of co-operation — co-opera- tive telephone companies, mutual insurance com- panies, building and loan associations, and credit unions — are therefore omitted. It is fair to state that the four kinds of co-oper- ation excluded from consideration here are wide- spread and influential in New England. The co- operative telephone companies, though least im- portant, still number probably over a score and are interesting examples of vigorous local en- deavor to satisfy a common need. In some in- PREFACE Stances each process in the installation of the tele- phone system has been managed in person by the co-operating members, even to the making and setting of the telephone poles. These independent companies have found it necessary, however, to make terms with the Bell Telephone system for other than local service and in consequence most of them are now controlled or completely absorbed by that company. The mutual insurance societies are of two main sorts, commercial and fraternal — the latter in both city and country being usually an incidental activity of secret orders. Co-operative insurance in New England far outnumbers all other types of co-operation, but the societies are not inter- related and have no common literature. The co-operative building and loan associations, frequently termed "savings and loan associations" and "co-operative banks," are America's best known type of co-operation and are federated into both state and national leagues. They are formed to promote thrift, and to facilitate the acquisition of homes. On October 31, 191 1, there were 160 of these "co-operative banks" in Massachusetts alone and well over 200 in the whole of New Eng- land, all operated and owned by the skilled work- ingmen and small tradespeople of the cities and mill towns. The credit unions are a new undertaking in American co-operative history, founded in Massa- chusetts since 1909 to fill a need until that date PREFACE met only by unscrupulous money lenders known as "salary loan sharks." Their purpose is "to promote thrift among the members by giving them an opportunity to save money in small amounts, and to obtain loans at moderate rates for purposes which promise to be of benefit to the borrower."* These societies are in the main like the Schultze-Delitzschf banks of Ger- many with limited liability of members; they were copied from the credit unions of Canada. Thirty-two such associations had been formed in Massachusetts up to October 31, 1912, giving evidence of a movement of consequence. All the four above-mentioned co-operative practices are incidental to the main course of producers' and consumers' co-operation which in Europe at least aims at the complete recon- struction of industrial and social life — and to make unjust destructive competition give place to brotherhood and opportunity. A complete account of the distributive and * See page 19 of Credit Unions : Statement and suggestions in re- gard to organizing and managing a Credit Union in Massachusetts. Issued by the Bank Commissioner of the Commonwealth of Massa- chusetts, June I, 191 1. t In 1850 Herr Schultze, Mayor of Delitzsch, Germany, founded a credit union in Eilenburg. This credit banl< and others that followed had share capital of much higher denomination than the credit unions of Canada and Massachusetts and differed from these latter in other minor details. To-day there are over 1000 banks of this type in Germany. For an account of the methods of these banks see Fay, C. R : Co-operation at Home and Abroad. Part I (London, P. S. King & Son, 1908); and Wolff, Henry W., People's Banks, especially Chapter VI. (3rd ed., London, P. S. King and Son, 1910.) PREFACE productive co-operative societies of New Eng- land is rendered especially difficult because of certain local peculiarities of the movement. The lack of federation of the associations is both cause and result of an extreme isolation. Few societies are aware of the existence of more than two or three others and no list is available. Directories of cities reveal varied types of stores or factories or clubs styled "co-operative." Many an ordinary dry goods or grocer's shop has used the title because it "sounded well." Philan- thropic societies,* too, sometimes use the name to cover their own endeavors and the anticipated reciprocation of their clientele. Business corpora- tions having features of mutual benefit, such as profit-sharing schemes in the business world, have a somewhat better claim to the use of the word. But the societies that once were or now are truly co-operative may or may not indicate this feature in their corporate name. These facts, coupled with the taciturnity and suspiciousness of both native and immigrant New Englanders, therefore, render an all-inclusive account of co-operative so- cieties impossible. The unincorporated and most elementary form of co-operation can not usually be traced. Public and official sources of information have also proved of little value. Except in Massachu- * For example, the Morgan Memorial Co-operative Industries and Stores of Boston, and the St. James Co-operative Sales of New Bedford. xviii PREFACE setts where in 1907 the Bureau of Statistics of Labor pubHshed a special bulletin (No. 47) on Distributive Co-operation in New England, state departments of labor have yielded no records of co- operative societies. The Massachusetts report was more limited than its title would indicate but it contained useful statements from 24 societies. Except for Maine the state departments of agri- culture have proved ignorant of the co-operative organization of farmers within their boundaries. The files kept by secretaries of state of the corporations organized under their laws, have been of some service, especially in Massachu- setts where statements of the assets and liabilities of all corporations are required and are published annually. Dairy commissioners in Massachu- setts, and Connecticut have the names of associa- tions within the dairy industry. But aside from these meager records and except for some slight assistance from state colleges, there has been no official source of data. Private sources have proved more fruitful and among these the annual reports of all the state granges and of the state dairymen's associations of Vermont and Maine were of much value. Files of the Arena and its successor, the Twentieth Century Magaiine, of the New England Farmer, the Maine Farmer, and especially the New England Home- stead have also been of use. Chief reliance, how- ever, has been placed upon correspondence with the secretaries of the co-operative associations PREFACE which had been ascertained to be in operation, and upon schedules of from 20 to 40 questions filled out by their officers. Visits were made to the places of business of more than 100 societies. A report on the subject of co-operation in New England was prepared by the writer in 1908 for the research department of the Boston School for Social Workers. This original study, a typewritten copy of which is permanently available among the doctors' theses of 1909 in the library of Har- vard University, was an economic treatise on Distributive and Productive Co-operation in New England. The present volume by complete adap- tation of the original material, and by exclusion of technical economic argument and of much detail, is intended as a practical treatment of the subject for popular use. During the summer of 191 1 the status of New England co-operation was entirely recanvassed, by letters to the old associations and to others more recently formed, and by examina- tion of all available published data of the inter- vening period. The statistical tables have been brought down to date, the descriptive portions of the report largely rewritten, and an introductory and concluding chapter added to show the rela- tion of co-operation in New England to the general co-operative movement elsewhere. TABLE OF CONTENTS PAGE Introduction. By Francis G. Peabody, LL.D. v Author's Preface xv PART I CO-OPERATIVE ASSOCIATIONS OF WORKINGMEN I. The Nature of Co-operative Enterprise . 3 II. Survivals of Early Movements . . .13 III. Associations among Immigrants ... 28 IV. Co-operation in Manufacture. ... 48 V. Needs and Trend of the Movement . . 58 PART II CO-OPERATIVE ASSOCIATIONS OF FARMERS VI. The Grange and General Agricultural Co- operation 87 1 12 132 '75 187 VII. Co-operative Sale of Produce VIII. Co-operation in the Dairy I ndustry IX. Interpretation and Prospect . Tables APPENDICES I. Laws Relative to Co-operative Corporations in Connecticut and Massachusetts . .189 II. By-Laws of the Riverside Co-operative Association of Maynard, Massachusetts . 193 III. Constitution and By-Laws of the Greystone and District Co-operative Association . . 199 IV. By-Laws of the New England Cranberry Sales Company 207 Bibliography 215 Index 221 XX i PART I CO-OPERATIVE ASSOCIATIONS OF WORKINGMEN CHAPTER I THE NATURE OF CO-OPERATIVE ENTER- PRISE AIMS AND PRINCIPLES THE past century has been characterized by a widespread abandonment of domestic and small-scale manufacture for large-scale production. The chief grounds for this transition are conceded to be, first, the use of steam, and later, the introduction of electric power in industry, which have made possible large undertakings and the employment of great numbers of operatives by single owners of capital. Two of the more serious social results of this revolution in indus- trial methods have been the severance of the personal relation and the increasing disparity in wealth between the employer of labor and his many employes. The increased output made possible by large-scale production has also stimu- lated expansion of trade, which in turn has tended to destroy in commerce as in industry the personal contact and the comparative similarity in fortune and interest of shopkeeper, employe, and client. Moreover, the ^possession of great wealth has materially increased the power of employer or 3 CO-OPERATIVE ASSOCIATIONS OF WORKINGMEN capitalist to do good or ill in business, in politics, an3~Tir~general~SDciat life. Protesf a gains t the misuse of this power has given rise-to iruiiLslrial co-operation. The "aim of co-operation is the substitution of common ownership and operation of trade and industry for individual or capitalist ownership. The co-operator seeks common ownership not through the government, as does the socialist, but through voluntary association of producers or con- isumers. The immediate economic purpose is to save money for the members of the association or to earn for them some form of middleman's profits. Thus, associations of workingmen pro- ducers seek to have factories and workshops owned by the operatives there employed. The profits of the industry do not go to a capitalist owner, but are divided equitably among employes.* The consumers' associations, which are relatively of vastly greater importance, are unions of men who seek to reduce the cost of living by owning stores, bakeries, etc., by eliminating all unneces- sary expense in business operations, and by distri- buting among themselves the profits which ordin- arily go to retailer, middleman, or producer. The ethical purpose is to moralizebusiness by elimina- tion of the frauds and graft whicRTre too prevalent in competitive industry, to produce and sell only goods^f hi gh qualit y made under proper condi- tions, and to~promote fraternity in the industrial * See Chapter IV, p. 48. NATURE OF CO-OPERATIVE ENTERPRISE world. The vital fact of co-operation which has everywhere given the movement significance is that it aims to conduct business democratically — with open membership and equal voting power — and that it further seeks to secure the common good J hrough se lf-help untrammdled jy patron- age or by governmental compulsion. Co-opera- y five societies then may be defined as associations of men who seek to better their condition through uniting their capital and their effort democratic- ally in the common pursuit of honest trade or industry. Co-operation as actually practiced today, es- pecially in Europe, covers in some degree every phase of business. It is found in farming, manu- facturing, banking, insurance, and in both whole- sale and retail distribution. It has attained pro- nounced success in two sociologically distinct fields: among workingmen who are organized pri- marily as consumers of goods and among farmers who hitherto have co-operated most readily as producers. Workingmen's associations are found in cities and in manufacturing towns and villages; farmers' associations in regions predominantly rural, though they may penetrate the city for pur- chase or sale of goods. Both of these main divi- sions include co-operative banks, stores, and fac- tories, but the problems that characterize them differ widely. The rural associations are formed by men who are owners of private property and employers of labor, — petty capitalists who organize 5 CO-OPERATIVE ASSOCIATIONS OF WORKINGMEN to overcome the handicap of geographical isolation and to gain larger profit from the commerce with the city. The urban group is intimately bound to the labor problem, is constantly concerned with questions of capital versus labor, with methods of profit-sharing, with trade-unionism and socialism. , The essence of co-operation may be traced in ' primitive communal practice, or in certain phases of mediaeval guild systems. Modern industrial co-operation, however, began in the factory towns of England and is the direct outgrowth of popular reaction against the evils of nineteenth century competition. The prophet of co-operation was Robert Owen, a manufacturer, at whose instiga- tion hundreds of consumers' clubs were established in Great Britain between 1820 and 1840. Owen's intention in proposing these associations was to establish not a co-operative movement like that of today, but socialism of a type already in part outgrown. The business methods of these original associations which sold goods at cost were faulty. The active enmity of private tradesmen whose prices were undercut was needlessly aroused and no margin of profit for the common purchase and sale of goods was left which could be reserved and drawn upon in times of business stress. The inevitable result was the failure of the movement. THE ROCHDALE MOVEMENT Modern co-operation is essentially democratic — a people's movement far more truly than either 6 NATURE OF CO-OPERATIVE ENTERPRISE trade unionism, agrarianism, or even socialism in its prevalent orthodox form, can be. Its effective practice dates from the adoption of a specific business and social policy drawn up in 1844 by a group of 28 flannel weavers in Rochdale, England. The dramatic early history of the co-operative grocery store with which the Rochdale Equitable Pioneers' Society began is, in the rough, quite com- monly known, and is in some degree reproduced in the story of all new associations, especially where, as in New England, they are unaided either by a co-operative union or by the state. The business principles of this association require detailed men- tion since, directly and indirectly, they have served quite largely as model for successful co-operative societies of every sort throughout the world. The Rochdale principles were: 1. Open membership with shares of low de- nomination — usually at £1 or I5 each and payable by instalments, so as to be with- in the reach of all. 2. Limitation of the amount of shares to be held by any one member, to prevent wide inequality in financial status of members. 3. Democratic government, each member to have but one vote, irrespective of the number of shares that he or she may hold. 4. Sale of pure goods and fair measure at pre- vailing market price, to avoid arousing needlessly the destructive hostility of local merchants. 5. Cash sales, to avoid loss through delayed payments and uncollectable accounts, to 7 CO-OPERATIVE ASSOCIATIONS OF WORKINGMEN reduce bookkeeping costs, and to insure purchase of goods on most advantageous terms. 6. Payment of not more than 5 per cent in- terest on shares, the rest of the profits, after deduction for depreciation and re- serve, to go partly to an educational fund, partly to charity, and the remainder to be distributed to purchasers whether members or not, in proportion to their trade at the store. The Rochdale pioneers, with a social farsighted- ness as rare as the economic sagacity of their busi- ness principles, drew up a social program which has largely governed the expansion of the co-opera- tive movement. On a basis of complete religious and political tolerance, with membership open to all, they sought ultimately to establish co-opera- tive methods throughout the whole range of the pro- duction and distribution of goods, and to unite all men in a world-wide brotherhood. They aimed to do this cautiously by rendering secure each step in the development of their association. Thus they planned to begin with a store for the co-opera- tive distribution of household necessities. As cap- ital accrued from the profits of their business, the \ store was to be followed by the purchase of factories (in order to give employment to the unemployed i members of the association and to make more cheaply the goods sold in the shop. Further capital was to be invested in farms for the production of rawmaterials and in the building of sanitary homes. NATURE OF CO-OPERATIVE ENTERPRISE Finally, by the encouragement of similar associa- tions in other towns, and by federation for both business and social advantage, the goal — a co-oper- ative commonwealth — was to be approached. Other associations following the principles and program of the Rochdale store, were organized in British factory towns. In 1864 these local associa- tions were federated for wholesale distribution and in 1873 they began centraliz¥d~co-operative manu- facture of goods. In 1869 the Co-operative Union * was established for purposes of education, propa- ganda, and the general protection of the movement. In 191 1 these federated co-operative associations in Great Britain comprised f over 2,700,000 members, and jointly owned ^60,000,000 of stock in trade, * Situated in Manchester, England. In igii tliere were 1531 local societies affiliated with the British Co-operative Union, of which 1407 were distributive associations and the remainder chiefly productive. The scope of the Union's activity may be indicated by a list of its committees and their functions. ([) Office Committee, Executive, (2) Finance Sub-Committee, to check accounts and control expenditure, (3) Educational Committee, to promote classes in the sciences, in bookkeeping, in co-operation, and to provide lecturers, scholarships, and diplomas, (4) Productive Committee, to advise and aid productive associations, (5) Parliamentary Com- mittee, to watch legislation and protect co-operative interests in Parliament, (6) Committee of Trade-Unionists and Co-operators, to settle disputes and maintain cordial relations between the co-opera- tive and trade union movements, (7) Exhibitions Committee, to organize and control exhibitions of co-operative production, (8) Propaganda Committee, to help establishment of new societies or branches of existing stores and aid struggling associations with advice and loans, (9) International and Foreign Inquiry Committee, to work with the International Co-operative Alliance, attend foreign co-operative congresses, and report on foreign methods. See chapter XXI 1 of Catherine Webb's "Industrial Co-operation," 4th Ed. revised, Manchester, 1910. t Statistics compiled by the Co-operative Union, published on pp. 594-5 of the Report of the 44th Annual Co-operative Congress, Portsmouth, 1912. /-OPERATIVE ASSOCIATIONS OF WORKINGMEN /0,ooo,ooo of land, buildings, machinery, and ixed stock, ^40,000,000 of house property, and 195,000,000 otherwise invested. Their sales for that year amounted to over ^500,000,000 and the net profits saved were ^60,000,000. Similar associations on the continent of Europe, though of more recent foundation, are growing each year in membership and success, but the proneness of a large proportion of the continental associations to restriction of membership on political, religious, or professional lines has seriously impeded organ- ized expansion. Of these non-Rochdale, move- ments, only the most important, that of^tjTe_sQcial- ists, has reached New England. Their associations differ from the prevalent Rochdale practice* in that no interest is paid on invested capital, for according to socialist principles "all wealth is due to labor," and "capital is unproductive." If dividends on purchases are granted, they are usually paid in store coupons rather than in money. The major portion of trade profits is used as a fund to furtherpolitical socialism. In Belgium and to some extent in France and Italy, People's Palaces have been built by socialist co-operators, on the bases of the above principles, with shops, bakeries, libraries, theaters, cafes, and meeting halls for trade unions and all labor interests, — centers for the business, education, and recreation of "the people." To- day in Europe the question of method and of aim between non-partisan co-operators of the Rochdale * See Chapter I II, p. 29. 10 NATURE OF CO-OPERATIVE ENTERPRISE type and the socialists are vital international issues. No other forms of co-operation are important. HISTORY OF AGRICULTURAL CO-OPERATION ABROAD The history of agricultural co-operation is ob- scure. Spontaneous local associations for pur- chase, manufacture, or sale of goods have probably existed among farmers since the days of primitive communism. Agricultural co-operation as an or- ganized movement for business improvement and social betterment is, however, comparatively re- cent, and has only begun to borrow in method from the urban movements exemplified by the workingmen's co-operative associations, or to fed- erate on matters of common importance. It or- dinarily varies widely from community to com- munity according to the prevailing local crops, possible markets, and the constitution, habits, and needs of the population. Co-operative pur- chasing associations are everywhere desirable. In Germany they are largely an off-shoot of the credit association or Raiffeisen bank,* a type of rural society that is scarcely known in America; in France they usually spring from the agricultural *Banks of this type, founded by F. W. Raiffeisen in Flammersfeld in 1849 and modified somewhat later at Neuwied, have spread throughout the world, counting 15,500 local agricultural credit associations in Germany and 33,700 in Europe as a whole in the year 1910. Membership is restricted to the parish, there is little or no share capital, money as a rule is borrowed by the association on the unlimited liability of all members and loaned to individual borrowers, under close surveillance, for productive purposes only. Detailed explanation of the methods of these banks may be found in the books by Fay and Wolff mentioned in the note on page vii of the Preface. II CO-OPERATIVE ASSOCIATIONS OF WORKINGMEN syndicates which are farmers' unions roughly cor- responding in their activities to the granges of American farmers. In Denmark, which is the most co-operative na- tion in the world, co-operation in significant form began only thirty years ago in the dairy industry. Notwithstanding its late adoption co-operative enterprise now embraces all of the agricultural industries upon which the commerce of Denmark is based, and has raised the whole country from poverty to prosperity and efficient democracy. In Ireland co-operation was urged upon the de- pleted farming population in the 90's by a handful of men of vision and tireless determination. In 19 10, 800 farmers' associations were revitalizing Irish rural communities. The co-operative movement today has reached every continent of the globe, but it is in Europe, where the movement is oldest, that its results are best recorded. In England, the general move- ment is still less than seventy years old, and on the continent of Europe but half that age; organized agricultural co-operation is in most places still more recent. Yet the urban and rural movements are already federated both nationally and inter- nationally on matters of common interest and are constantly increasing in their social value and ef- fectiveness. CHAPTER II SURVIVALS OF EARLY MOVEMENTS THE United States was a nation of farmers until far into the nineteenth century. New England in 1820 counted but two towns of over 10,000 inhabitants; in 1830, three. The farm homes were largely self-sufficing, the families raising their own food, weaving and making their own clothes. It was not until 1830 that indus- trialism was at all widely felt in what is now the prTdoininantly manufacturing district of America. It was not until the 30's, therefore, that the minds of the New England peopleJurned tCL the- need of industrial co-operation. THE NEW ENGLAND UNION STORES The first important co-operative movement be- gan in Boston among the workings classes. Its aim, like that of the English societies, was to re- duce the cost of living by saving to the consumer the wastes occasioned by the credit system and to secure to him honest goods, fair measure, and the profits of the private retailer. Clubs with these objects in view, spontaneous in origin and unrecorded, probably existed long 13 CO-OPERATIVE ASSOCIATIONS OF WORKINGMEN before this century and exist today in fair fre- quency among neighbors in city or country — usu- ally for joint purchase of eggs, butter, or other home necessities. In the beginning these clubs owned no real estate, delivered no goods, and sold at cost price. One member of the group did the buying, ordinarily with little or no stipend for his services. For one to whom the time involved in collecting and filling orders was of slight ac- count, the saving through wholesale purchase was in itself ample compensation. The New England Association of Farmers, Mechanics, and other Workingmen,* discussed co-operation of this ele- mentary type as early as 1832, but without unan- imity. Later a few of its members joined their orders for household goods and got them at whole- sale houses, with the price per article considerably reduced. In 1845 a purchasing club of this sort in Boston sold stock, established a store, and kept on hand a surplus supply of provisions beyond the amount for which orders had been placed. The store soon commanded the attention of neighboring towns, and new co-operative associations were founded, resulting by 1847 in the formation oL a federation for purposes of general co-operative purchase and for propaganda. The federation adopted the title Workingmen's Protective JJnion, which in 1849 was * This association was an organization of open membership formed to reduce the hours of labor, to destroy the trucking system, and to promote the education of workingmen and their children. See Pro- ceedings of the New England Association of Farmers, Mechanics, and other Workingmen, Dec. i6, iS^e. >4 SURVIVALS OF EARLY MOVEMENTS changed to New England Protective Union.* The local shops were termed Union stores. Membership in the local divisions was restricted to men of good character; no man using or selling intoxicating liquors was eligible. The program adopted was one of broad s^ocial^ amelioration to which co- operation, mercantile and fraternal, was the means. In business practice these stores at first sold goods only to members and at a price slightly above cost, allowance being made for rent of the building, for agent's salary, and other expenses, plus a slight reserve kept for contingencies. Later, the shops were opened to all comers; but non- shareholders paid market prices while members either bought goods at reduced prices, the usual Union method, or received their profits in the form of dividends on their shares. Certain recognized co-operative principles, such as cash sales, open membership, equal voting by members irrespec- tive of number of shares, and federation of socie- ties for wholesale purchase, were at first generally adhered to. There is no evidence that dividends were declared on purchases to members and non- members, as was the practice of the co-operators of England during this period. Dividends if paid at all were paid only to members and on shares. Union stores increased rapidly throughout the northeastern states in the early 50's. There is *A full account of the early history of co-operation is contained in the Eighth Annual Report of the Massachusetts Bureau of Statistics of Labor. rSyy. See also Bemis, E. W.: Co-operation in New England. American Economic Association, i885. 15 .O-OPERATIVE ASSOCIATIONS OF WORKINGMEN fecord of about 700 such societies, mostly in New England. But as the movement extended atten- tion was paid more and more to the securing of economic advantages, and the social and ethical aims became less prominent, The decline of the movement was marked by certain deviations from recognized co-operative principles, such as ex- tended credit, limited membership, disloyalty to the federation. Ill-advised ventures were under- taken, many of them in regions of insufficient trade and with untrained managers. Hence it is not surprising that with the hard times of 1857 and the general commercial uncertainty occa- sioned by the Civil War, the whole system fell to pieces. Some associations failed disastrously, but it is stated that the majority of Union stores dis- banded without loss to members on the original in- vestment, while many distributed large accumu- lations of earnings. In general, these stores sold out to private firms or fell into the hands of a limited number of their former members. There are, however, four sur- vivors among the Union stores, two of which, through shcty^j^ears^ have retained enough of the old co-operative features to make them worthy of study. The purer type of these two is the Central Union Association of New Bedford, Massachu- setts. It was founded in 1848 by thrifty mechanics, coopers, whalers, and shipbuilders of that city, as Division number 55 of the Workingmen's Pro- 16 SURVIVALS OF EARLY MOVEMENTS tective Union and still has 348 members, mostly men and women of fair means. Until its incor- poration in 1906 no member held more than one share. Now there are three or four who hold more than one, but voting remains by members rather than by shares, so that democracy is maintained. Over half of the employes are shareholders. In the annual statement of September, 1910, the society reported outstanding share capital of ^10,560, a stock on hand of ^7,563, and a sur- plus of ^6,039; it owns no real estate and has no debts. Since 1894 it has annually distributed 10 per cent dividends on shares, besides the small rebates* on all members' purchases which have been paid since the founding of the store. Pre- vious to 1892 the society, by practicing every econ- omy, had for over fifteen years distributed divi- dends on shares varying between 25 and 33 per cent. This store was almost the last in New Bed- ford to adopt the delivery system. When finally in 1894 the management yielded to the general practice and put on teams, the dividends fell off to 10 per cent and have never recovered. Credit has been allowed to members and to non-members for years, but with discrimination. The store has been managed for many decades by a man who began as clerk in 1850. Apparently there has been little interference on the part of the members, * For example, butter, coffee, baking powder, etc., at the rate of 2 cents per pound; eggs, 2 cents per dozen; potatoes, 2 cents per peck; flour, 25 cents per barrel, or 3 cents per bag, etc. 2 17 CO-OPERATIVE ASSOCIATIONS OF WORKINGMEN for it is difficult to obtain a quorum for the semi- annual meetings. Administration has been effi- cient and the stockholders have confidence in it. The other surviving Union store of the period, which is only partially co-operative today, is the Acushnet Co-operative Association, also of New Bedford. This association states that it began business in 1849 as an independent Union store, with 100 members, each of whom held one ten- dollar share. Goods were sold to members at a lower price than to non-members. There are now 95 shareholders, New Englanders together with a few Portuguese, each holding from one to 30 shares, at ^25 a share. In the past, dividends as high as 20 per cent have been paid, but of late years they have been low, for credit is given to members and to non-members. Voting is by members still, but there is a movement to change to voting by shares. Only two of the six employes are shareholders. Here, as in the Central Union store, management has been efficient and stable and members have not inter- fered.* There are several noteworthy points in the evolu- tion of the Union stores. They were co-operative * Two other existing Union stores which are much less co-operative are the Protective Union Company of Worcester, and the Natick Protective Union of Natick, Massachusetts. The former, founded in 1847, had in January, 1910, an outstanding capital stock of $10,000, and a surplus of feo.ooo. The Natick Protective Union, organized in 1866, has a capital stock of f 6,000, and a surplus of J 1,800. Both of these organizations are prosperous middle-class concerns of in- creasingly restricted membership, paying high dividends on shares and not co-operative in their ideal. SURVIVALS OF EARLY MOVEMENTS in their economic aim, which was that the con- sumer of small means should save to himself the retailer's and the middleman's profits. They were also co-operative in their method in that the status of members was democratic — one share and one vote per man. Payment of large dividends V on shares is usually considered a non co-operative , ..'C^^^ -, feature, but where each man has but one share , ry^^^"* J there is no plutocracy, and where rebates are made j ,V^ w'~ on purchases the mcentive to loyalty m trade is S'^^.J^''' about as great as where dividends are paid ac- ^'^" „ cording to purchase. \^^^v^^ Nevertheless, these methods of co-operation are cr^^ yj/^ inadvisable. For it is apparently easier for societies "^"^ ^y \^'^ employing them to evolve into joint-stock com- ,^:' g^^^ ^ panies than it is for Rochdale stores in which an '^^-^ V^ ^\^ unequal holding of low-priced shares is expected, but equal voting is stipulated as an indispensable first principle. Shares are high-priced in the type of association that exists in New Bedford, so that membership is at once restricted to the thrifty. When sufficient capital has been attained for the natural trade of the locality where the store is placed, no new stock is issued and shares become difficult for outsiders to get, since members feel that the business built up by them should remain their own. Usually shares are obtainable only on the death or migration of stockholders. Since dividends are high and shares scarce, they are wanted by many when available, and seUat a premium. The tendency for old members, espe- lO ^M r CO-OPERATIVE ASSOCIATIONS OF WORKINGMEN cially directors, to keep the business in their own hands is so strong that they often pass by-laws permitting members to own more than one share; thus they can buy up shares placed on the market and in time make the society a restricted joint- stock company. When votes are cast by shares, and employes or patrons are not invited to mem- bership, the last traces of the co-operative inten- tion are lost. The ethical ideal of social ameliora- tion having long since passed from view with the passing on of the founders, such Union stores differ not at all in the eyes of the new generation from other stock companies. The end of New England's first native co- operative movement was thus, for the majority of associations, disbandment. The remainder, with the exception of the two New Bedford stores de- scribed, are characterized by evolution into joint- stock companies. Their history is thus much like that of the Owenite movement in England whose principles they largely followed. It should be noted, however, that even after sixty years there remain the two survivors mentioned. These so- cieties were and are co-operative, though varying widely from Rochdale methods. Their success, despite handicap in method and in prevalent busi- ness ideals, offers valuable testimony to the possibil- ity of real co-operation among native Americans.* * There survive two other co-operative associations of the early period which were apparently never formally affiliated either with the Protective Union or subsequent co-operative movements. Both are quite individual in their make-up. The first of these, the Plymouth Rock Co-operative Company of Plymouth, Massachusetts, was organized by five men in 1871 as a 20 SURVIVALS OF EARLY MOVEMENTS SOVEREIGNS OF INDUSTRY MOVEMENT The second co-operative movement in New England was that of the Sovereigns of Industry, an order formed among workingmen at Springfield in 1874. The Sovereigns of lndustry_ aimed "by wise and kindly measures to present organized resistance to the organized encroachment of the monopolies and other evils of the existing industrial joint-stock company. After five years, membership was thrown open to others, shares selling at J15 apiece until 225 shares were taken up, no one member being allowed over 10 shares. Since then no more shares have been issued; and undistributed surplus has been used for capital as business increased in size. There are now about 60 mem- bers, native Americans of small means, in general earning less than §1,000 a year each. Shares are purchasable usually only upon the death of one of the members, but anyone may buy who can. On January i, 1908, the ending of the fiscal year, 8 per cent interest was granted on shares and 4 per cent dividends on purchases were declared for both members and non-members. This last feature is almost peculiar to this society; most of the Rochdale associations of the last two decades grant one-half dividends on purchases to non-members but never grant them full dividends. The "one man, one vote" rule is followed, and since but few of the members come to meetings, the agent of the store has quite free rein in ail matters. Credit is given only to members and only for one-week periods, which accounts largely for the success of the society. One point in which this association differs from co-operative societies in general is that not any of the five employes are members. This, together with the fact of the restricted membership and the lack of interest in meetings augurs alienation from early co-operative intention. The second of these stores was founded by the Danvers Co- operative Association in 1872. It had in July, 1908, a membership of 50 American and Irish workingmen, mostly shoemakers and farmers. Each member holds one share, of which the par value is $50. Though credit is given both to members and non-members the losses from bad debts since incorporation in 1882 have been less than $500. In the fiscal year July, 1907-July, 1908, $34 was dis- tributed to each member on his share. Co-operative spirit is re- ported as strong, though attendance at meetings is small. This is a workingmen's society and is thoroughly democratic in voting powers and in the holding of capital, even though membership is restricted. Since it was founded by local consumers to lessen the costs to them of competition, it may be classified among co-operative societies even though local conditions of limited available business have compelled re- striction of capital investment, resulting in restriction of membership. 21 CO-OPERATIVE ASSOCIATIONS OF WORKINGMEN and commercial system." To accomplish this aim they proposed "to establish a better system of economical exchanges and to promote, on a basis of equity and liberty, mutual fellowship and co- operative action among the producers and con- sumers of wealth throughout the earth." The first ventures of this order, like those of its pre- decessor, the Protective Union, were purchasing clubs. These were followed by stores which sold only to Sovereigns and at less than market price. (Later in the 70's a large number of the Sovereigns I adopted the Rochdale method: market price, cash / sales, equal vote, interest on shares, and dividends , to members on purchases; with them thus begins ^ the spread of the modern type of co-operative store. At the height of the movement in 1875 the order probably embraced in New England over 280* local councils, each with its purchasing club or store. f But the order declined during the financial depres- sion of 1877-78 and broke up in 1879. Its co-oper- ative stores, like the Union stores, for the most part fell into private hands, many of them without loss to shareholders. Nevertheless, five of the most prominent co-operative stores in New England to- day datefrom the Sovereigns of Industry movement. * See Bemis, E. W. : Co-operation in New England, p. 43. Ameri- can Economic Association, 1886. It was estimated tliat there were over 170 local councils in the Middle and Central States. The too rapid growth of the order was a cause of its instability and speedy disruption. t A few stores of the Rochdale type were founded in the 6o's before the Sovereigns of Industry movement. The Rochdale method did not become general until the latter 70's. 22 SURVIVALS OF EARLY MOVEMENTS The Sovereigns Trading Company of New Britain, Connecticut, organized in 1877, is the most individual of these surviving stores, and one of the largest in New England. The noteworthy feature of this society is that the shares cost $100 each, payable by instalments and accumulating dividends, and that only one share is permitted to each member. Although the high price of shares makes them available only to workmen of thrift, the prescribed equality in holding and voting renders the society thoroughly democratic. At the end of the fiscal year, December 31, 1 9 1 0, there were 237 members, native born Americans of various trades, each holding one one-hundred- dollar share. The society held real estate valued at ^70,000 and mortgaged for ^45,000. There was a surplus of $14,618. Sales for the fiscal year amounted to $98,172 from the profits of which a 5 per cent dividend was declared on members' trade besides 6 per cent interest on shares. Credit is given only to members and is limited to thirty days. Though the society is not growing, it evinces a fair amount of co-operative spirit. The average attendance at meetings is about 20. This society, although it varies from Rochdale methods in the high price of shares and in the provision that no member may purchase more than one is, in the words of its secretary, "the only society out of several in this vicinity that remains; we have been and are prosperous." 23 CO-OPERATIVE ASSOCIATIONS OF WORKINGMEN The Sovereigns of Industry stores of New Bri- tain, Gardner,* and Beverlyf are the last surviving associations formed in the old pre-Rochdale style. J They mark also the end of native co-operative commerce in urban New England. Like the sur- viving Protective Union stores, through careful management they have been long-lived and locally successful, though characterized of late years by an unwillingness to extend their membership and by cessation of co-operative propaganda. There are two remaining stores of the Sovereigns of Industry period, the Riyerside^^g-operative As- sociation of Maynard and the Lowell Co-operative Association of Lowell, both of which finally adopted the Rochdale method and are prophetic of a new period in co-operative history. They deserve especial mention both because they have served as models for numerous other CQ-operative asso- ciations and because they have proved through nearly forty years the practicability of co-opera- * The Gardner Co-operative Association of Gardner, Massa- chusetts, was organized before the Sovereigns of Industry movement, but joined it in 1874. It was among the first to sell at market price and pay dividends on purchases, but, like the old Union stores, it has issued no new shares for many years. Membership has thus become restricted; shares are hard to obtain, and now sell above par. The success of the association is shown by the fact that in 19 10 the accumulated reserve fund amounted to $21,215. The stock- holders are, with few exceptions, native Americans who have pros- pered fairly well since the inception of the organization, and would be rated, economically speaking, as of the middle class. t The Beverly Co-operative Association is unique in that it does not pay dividends on purchases, nor limit the amount of shares a member may hold, yet retains the essentially democratic features of manhood vote and sale of shares at par. I See pp. 6 and 15. 24 SURVIVALS OF EARLY MOVEMENTS tion among the low-salaried, migratory, cos- mopolitan population of New England mill towns. The Riverside Co-operative Association is situ- ated in Maynard, Massachusetts, a textile town with a population of 6,400. At the close of the fiscal year, December 31, 1909, the society com- prised about 600 members, — Americans. English, Scotch, Irish, Swedes, Danes, Finns, and French, — workers in the woolen mills of the town, earning a typical wage of ^10 to |i 5 a week. The capital stock in 1910 was ^14,710, divided into shares of ^5.00 each, no member holding over 60. The real estate of the association, which consists of a large, three-story wooden building, was estimated at ^11,000, mortgaged for $1,500; stock on hand was $8,600 ; there was also a reserve fund of $4,700. Total sales during 1908 amounted to $83,000. Besides 6 per cent interest paid on shares, an 8 per cent dividend was allowed on trade during the first half year, and a 5 per cent dividend in the second half year (January, 1908, to June, 1908). In all, the sum of $4,860 in dividends had been distributed during that year. Credit is given only to members. Seven of the 1 1 employes are share- holders, and despite the age of the organization, at- tendance of 75 members at meetings can be counted upon. It is probable that no co-operative store in urban New England has a wider local influence among the English-speaking population of the community than has this association. By careful 25 CO-OPERATIVE ASSOCIATIONS OF WORKINGMEN management, shrewd by-laws,* and high ideals, it has continuously attested the value of the co- operative method. The largest workingman's co-operative society in New England today is the Lowell Co-operative Association (Sovereigns of Industry), of Lowell, Massachusetts. Organized in 1876, this society had in June, 191 1, about_2,20o workingmen share- holders, mostly Irish, and a capital stock of ^13,- 895, in shares of $5.00 each. There was ^26,400 invested in real estate free of mortgage. Sales of groceries and coal amounted to almost $220,000. Four per cent interest was paid on shares, 7 per cent dividends on shareholders' purchases, and ^14, per cent to "members, " — general patrons who pay 25 cents to the society and receive 3^ of the regular dividend on purchases without owning shares, in all, from $10,000 to $15,000 has been distributed annually as dividends on purchases. Arrangements are also made with seven local dealers in clothing, boots and shoes, furniture, cutlery, and other wares for 7 per cent dis- count to stockholders. This is apparently the oldest New England society that has secured and retained the trade discount system. Under con- tinuous, painstaking management this association has in twenty years progressed from ninth to first place in amount of annual trade. By democratic voting, by restriction of credit to inembers only, and by inducing its employes to become share- * For these by-laws see Appendix II, p. 193. 26 SURVIVALS OF EARLY MOVEMENTS holders, it has made co-operation grow out of diificult racial material and in the choking en- vironment of one of the largest mill towns of America. It will thus be seen that the Sovereigns of In- dustry movement began the modern period of co- operation in New England through the introduc- tion and popularization of Rochdale methods. Though some of the surviving stores of this move- ment retain features of earlier forms of co-opera- tion, or introduce methods peculiar to themselves, the two most famous stores, which are also the two largest in membership, are as completely Rochdale in their organization as any in New Eng- land today. The Sovereigns' stores mark the period of transition from workingmen's joint- stock co-operative companies to workingmen's Rochdale co-operative societies.* * The Knights of Labor founded many co-operative stores in 1884. But co-operation was incidental to a radical political program, the failure of which destroyed the stores. There are no survivors of this movement. The college co-operative stores — the Harvard Co-operative Society, the Yale Co-operative Corporation, and the M. 1. T. (Massachusetts Institute of Technology) Co-operative Society — have conducted economic co-operative business for a quarter of a century and their methods have been copied by college stores throughout the country. The Harvard Co-operative Society is the largest and oldest of these. In the fiscal year ending July 31, 1912, it did a business in books, men's furnishings, tailoring, stationery, furniture, and coal and wood, amounting to approximately 3393,000, A dividend of 9 per cent was declared on members' purchases in addition to large con- tributions to the reserve and building funds. These college societies vary from the Rochdale method in that they are of exclusive mem- bership and are not completely democratic in management. Co-operative coal companies, founded in many New England towns during the coal strike of 1902, are now, with few exceptions, joint- stock companies. 27 CHAPTER III ASSOCIATIONS AMONG IMMIGRANTS THE transition in America from the co-opera- tive methods of the Protective Union stores to the methods employed after 1876 by the Sovereigns of Industry is a close repro- duction of the general evolution of co-operation throughout Europe — the change from the Owen- ite movement with sale at cost price to the present Rochdale movement in England, or from the conservative middle class German stores of the 6o's and 70's to the more democratic Kon- sumvereine of German workingmen today. This transition in New England was, however, seriously affected by certain significant social facts of the period. The heavy flow of European emigration to America had already well begun before the period of the downfall of the Sovereigns movement in the latter 70's. Not only the English-speaking Irish and Scotchmen but also the more foreign Teutonic peoples of Germany and Scandinavia were entering American industrial life in large numbers. Of late have come the men of Latin and Slavic blood. These immigrants, many of 28 ASSOCIATIONS AMONG IMMIGRANTS them unable to speak our language, usually drift at first into unskilled occupations. They and their children have largely formed the laboring, artisan, and mechanic groups of American indus- try. Native Americans of ability have become employers or at least overseers of this foreign labor, only the less fit among them having re- mained within the "working class." The influence of these changes in population upon the history of New England co-operation is important, for the advent of alien immigrants marks the cessation of co-operative movements among native Americans and the importation of foreign co-operative methods and ideals. The na- tive American in industrial communities ceased to found co-operative movements because with equal effort he could earn much more by the exploitation of foreign labor than he could save by co-operative thrift. The Irish immigrant, who did not import co-operative experience, quickly joined the native American in the exploitation of the foreigners. ROCHDALE ASSOCIATIONS OF ENGLISH IMMIGRANTS The English immigrant brought with him what has become the most familiar type of co-operative association to be found in New England towns to- day. For he had come from the textile towns of England, where he was proficient as artisan or mechanic or mill-hand, to the mill towns of New England. He saw reproduced in America the same needs that had created the consumers' 29 CO-OPERATIVE ASSOCIATIONS OF WORKINGMEN associations to which he belonged in England and he instinctively urged co-operation. Thus throughout New England where English immi- grants have congregated, consumers' stores have been started, — always on the Rochdale model, with shares at ^5.00 each and membership open to all applicants. Three which were organized in the 8o's survive, and are still influential as patterns for new ven- tures. These are the Sabbatus Co-operative As- sociation and the Lisbon Falls Co-operative Asso- ciation of Maine, and the Pascoag United Co-oper- ative Association of Burrillville, Rhode Island. Their memberships are small, ranging from 100 to 300. Their sales are from ^30,000 to ^53,400 per year. Their reserve funds range from ^500 to ^2,500; but they exist in small mill towns where the need for larger shops is slight, and they run smoothly, governed by men practiced in co-opera- tion in their home country. The Lisbon Falls and Sabbatus Associations pay 6 per cent interest on shares and from 8 per cent to 1 2 per cent to members on purchases as conditions may warrant. The association at Lisbon Falls has distributed over ^85,000 in dividends to its members during the twenty-six years of its existence, besides accumu- lating real estate free of mortgage valued at ^5,300 and a surplus of ^1,900. These two associations have largely served as models for the Freeport and Skowhegan Co-operative Associations as well as for many of the farmers' stores of Maine. 30 ASSOCIATIONS AMONG IMMIGRANTS The Pascoag Association is noteworthy in that it requires all employes to be shareholders, pays 5 per cent interest on shares, 5 per cent dividends to members, and one-half dividends to non-mem- bers on purchases. It has also developed a system of "commission sales" with private retailers of the locality. By this system the bill for a member's purchase at an affiliated store is sent by the latter to the co-operative association and is paid by them at once, usually at a 10 per cent discount; the purchaser meanwhile is charged full price for this purchase by the co-operative store and at the end of the fiscal period he receives a dividend on his purchase from the store at whatever rate the society is paying its general dividends. The differ- ence between the cost of the purchase to the store and to the purchaser goes to swell the society's profits. Pascoag methods have been copied in part by the co-operative stores of Providence (the Greystone and District), Rhode Island, and of North Dighton, Massachusetts. The North Dighton Co-operative Association was founded in 1906 at the instigation of the owner of a local bleachery who had the interests of his employes genuinely at heart. A former clerk of th€ Pascoag United Co-operative Association of Rhode Island was secured as manager. Attempts were made to buy out the local grocery store but without success, so that the two stores now run in competition, the former furnishing goods to the farm population with extended credit, the co-op- s' CO-OPERATIVE ASSOCIATIONS OF WORKINGMEN erative association dealing with the industrial worker and for cash. The records for its first year's business were good. The most promising co-operative store of south- ern New England today is that of the Greystone and District Co-operative Association in a sub- urb of Providence, Rhode Island. This store, founded in 1908, already has a paid-up capital of ^6,435 contributed by 315 members, largely textile operatives, whose weekly wages range between ^9.00 and ^18. Sales already amount to over $71,000 a year and dividends in 1910 amounted to over $6,000 paid at the rate of 8)4 per cent to members, and 4 per cent to non-members. The association is now building a large department store to handle its rapidly growing trade. Two important reasons may be assigned for the success ,of this association: First, its members are mostly 1 Englishmen, who were trained in co-operation in 'their home country and whose qualifications are carefully scrutinized by the board of directors when they apply for membership. This method has prevented the danger of unassimilable and non- po-operative types of members, which have de- stroyed many earlier New England stores. The second reason for success is still more cogent, for the Greystone Association has practiced co-oper- ation on an absolute cash basis, paying every seven days for all the goods it buys, buying direct from producer wherever possible, and selling to members without incurring bad debts or delayed payments. 32 ASSOCIATIONS AMONG IMMIGRANTS In Maine there are recent stores of this type* in Sanford, Skowhegan, Freeport, and Madison, all following the Rochdale principles, and engaged primarily in the grocery trade with mill operatives. Of these the largest and most successful is the Sanford Co-operative Association of Sanford. Founded in 1900 by ardent English co-operators, the store now has 450 members, workers in local woolen mills. The association has a capital stock of ^35,000, and besides a small grocery business possesses unencumbered real estate estimated at $30,000 which pays $1,600 rent yearly. The associations of immigrant Englishmen have always been open in membership and many have taken foreigners very largely into the company. This cosmopolitanism has, however, sometimes been hazardous to the success of their societies, and has destroyed unity of sympathy and of ideals; for foreigners have not proved assimilable in large numbers. The experience of these latter in co- operation is either of a different sort or they lack all knowledge of it. Their political and religious differences may become pronounced under the direction of a popular member or of a priest. The racial cliques of Germans versus English at East- hampton, and of French versus English at Brock- ton, proved difficult to manage. At Orange, two Swedes formed a Swedish People's Co-operative Store to destroy the local co-operative association * There are recent English stores also in Lynn and Brocl^-3 5 5 No Members Ass'n '• Maine 1910 North Dighton Co-oper- No. Dighton Nov. 30, 1906 1906 — In Bleachery 8-30 pot — 2,080 s 80 — 195 6,930 — 5 4ti 2t 2t 2t Members (till next ative Ass'n Mass. 1909 purchase) Greystone and District Providence, 1911 1908 1909 English Various 9-18 3 IS Yes 6,435 s 40 — 877 71,076 5 iVa 4 s 3 10 per No one Co-operative Ass'n i R. 1. cent Equitable Co-operative Worcester, 1911 — 1911 Various Various — . 198 — . — 5 — — . . , . . . .., Ass'n Mass. Garden City Co-operative Beverly, Oct., — 1911 — Mechanics (iS per 13 225 — — 5 — . — — , , Ass'n Mass. 1911 cent) Skowhegan Co-operative ] Skowhegan, Feb. I. — 1909 — Farmers — . 112 Yes 1,000 5 — — — 5 6 3 2 I Members to J value Ass'n j Maine 1911 of shares Freeport Co-operative i Freeport, Aug. r. — 1910 — — 35 No 1,000 — 20 3,000 6 4 2 2 Members (to amount Ass'n \ Maine 1911 of shares) Railway Stores Greenfield Co-operative Greenfield, Store Mass. 1911 — 1911 English and Irish Railway Employes — — — — 10 10 — — — — — — — — — — — Palmer Co-operative Boston. 1911 1911 1911 English and Railway Employes 1300 Yes — S I — . — . — . — . Yes , Ass'n Mass. Irish Coal Yards All Rail Coal Co. New Haven, Conn. Mar. 31, 1911 1902 1902 Various Various — About 4000 No 13,480 I 100 2,500 29,048 — 140,000 10 22 About 8 No To ''responsible" persons Rhode Island Co-oper- Providence, 1908 1903 1903 Various Various — About 4,500 5 —~ — — — About 25 cents — ative Coal Co. R. I. 175 90,000 per ton rebate Pittsfield Co-operative Pittsfield, July I, 19OS Various Various 6,07s . 3,476 6,418 l6,3S3 _ Coal Co. Mass. 1910 Adams Co-operative Adams, July I. 1904 — . Various Various — . — — 1,800 5 — 1,500 — - 6,505 . Ass'n Mass. 1910 * The zero (o) indicates that definite replies in the negative were received. The dash ( — ) shows that no information was obtained. X In 1908. § In process of dissolution. ** In 191 1. t The membership is largely composed of well-to-do citizens. b rl ■ :..i- ..'JO:^ ■^■". n£J3' J ■ : } , M APPENDICES APPENDIX I LAWS RELATIVE TO CO-OPERATIVE CORPORA- TIONS IN CONNECTICUT AND MASSA- CHUSETTS Connecticut CONNECTICUT, R. L. 1902, Chapter 223, Section 3992. Organization. Seven or more persons, of lawful age, inhabitants of this state, may, by written articles of agreement, associate themselves together for the purposes of trade, or for carrying on any lawful mercantile, mechanical, manufacturing, or agricultural business within this state, and when such articles of association shall have been exe- cuted, and recorded in the office of the town clerk, in the town in which the business is to be carried on, such persons shall become a corporation, and enjoy all the powers and privileges, and be subject to all the duties, restrictions, and liabilities set forth in all general laws, in relation to similar corpora- tions, except so far as the same may be limited or enlarged by this chapter. Section 3993. Object and Place of Business. The objects for which such association is established, and the place within which its business is to be carried on, shall be distinctly set forth in its articles of agreement, and it shall not do business in any other place or places than those mentioned in its articles. Section 3994. Management. The business of the asso- ciation shall be managed and conducted by a president, a treasurer, and a board of not less than five directors, who shall be styled a board of managers, shall be chosen annually by the stockholders, and shall hold their offices until others 189 CO-OPERATION IN NEW ENGLAND are chosen and qualified in their stead. Such association shall have such other officers as it shall prescribe by its by- laws, and the mode of appointment and choice of such officers shall also be prescribed by the by-laws. Section 3995. First Meeting; By-laws. Any two of the persons associated may call the first meeting of such asso- ciation, at such time and place as they may appoint, by notice in any newspaper published in the county in which such association is to be established, at least fifteen days before the time appointed; but such notice may be waived by a writing signed by all of the persons so associated, specifying the time and place for said meeting, and recorded at length upon the records of the association. Such association may make its own by-laws, provided they be not repugnant to the laws of this state, and shall file in the town clerk's office of the town where it transacts its business a copy of all by-laws made by it. Section 3996. Capital Stock. The amount of capital stock of such association shall be fixed by its articles of asso- ciation at any sum not exceeding fifty thousand dollars. The association may increase or diminish the amount and number of shares of said stock at any meeting of the stockholders specially called for that purpose, and within five days after the passage of any vote increasing or diminishing the said stock, shall cause such vote to be recorded in the town clerk's office of the town where its business is carried on, but no share shall be issued for less than its par value. Section 3997. Annual Statement of Condition. When the association shall have organized, it shall be the duty of the board of managers to prepare a statement of the condition of the association, setting forth the amount of the capital stock, the par value of the shares, the number of shares issued, the names and residences of the shareholders, and the number of shares owned by each, which statement shall be filed and recorded in the office of the secretary of state and in the office of the town clerk of the town in which the associa- tion proposes to do business; and on or before the tenth day 190 CONNECTICUT LAW of March in each year thereafter, the board of managers shall prepare a like statement of the same facts as they existed on the first day of said March, with a statement of the kind and amount of the property of the association on that day, and of all its debts and liabilities of every kind, and the same shall be filed and recorded in the office of the town clerk of each town in which the association does business, and also in the office of the secretary of state. All the statements provided for in this section shall be signed and sworn to by a majority of the board of managers. Section 3998. Rights of Members. No member of any such association shall be entitled to hold or claim any interest therein exceeding the sum of one thousand dollars, nor shall any member be entitled to more than one vote upon any subject. Section 3999. Issue of Certificates of Shares. No certificate of shares shall be issued to any person until the full amount thereof shall have been paid in cash, and no share- holder shall receive less than the par value of any share when disposing of the same to the board of managers. No person shall be allowed to become a shareholder in such association except by the consent of the managers of the same. Section 4000. Penalty for Failure to Make Returns. If the board of managers shall fail to make any return re- quired by this chapter, or shall make an untrue return, they shall be jointly and severally liable for all debts existing at the date of such return, or at the time when the same should have been made. Section 4001. Distribution of Profits; Sinking Fund. There shall be such distribution of the profits or earnings of such association among the shareholders as shall be pre- scribed by the by-laws; provided, that no distribution shall be declared or paid, until a sum equal to ten per cent, of the net profits shall be appropriated for a contingent or sinking fund, and until there shall have been thereby accumulated a sum equal to twenty per cent, of such capital stock. 191 CO-OPERATION IN NEW ENGLAND Massachusetts Massachusetts, Acts of 1903, Chapter 437, section 93. A corporation which is organized for the purpose of co-operation in carrying on any business and of co-operative trade shall distribute its earnings or profits among its workmen, pur- chasers and stockholders at such times and in such manner as its by-laws shall prescribe, but as often at least as once in twelve months. No distribution shall be made unless at least ten per cent, of the net profits have been appropriated for a contingent or sinking fund until an amount has accumu- lated equal to thirty per cent, of its capital stock. No person shall hold shares in any such corporation to an amount ex- ceeding one thousand dollars at their par value, nor shall a stockholder be entitled to more than one vote upon any subject. 192 APPENDIX II BY-LAWS OF THE RIVERSIDE CO-OPERATIVE ASSOCIATION OF MAYNARD, MASSACHU- SETTS, INCORPORATED NOV. 12, 1878 Article I. Name This Association shall be known as the "Riverside Co- operative Association of Maynard." Its object shall be to carry on in common the trade of general dealers, and its place of business shall be the town of Maynard. Article II. Quorum Fifteen stockholders shall constitute a quorum for the transaction of business, and no stockholder shall be entitled to more than one vote. Article HI. Officers and their Duties Section i. The Officers of the Association shall consist of a Treasurer, two Auditors, a Board of five Directors, one of which shall be President and one Clerk, the President and Clerk to be elected by the Board from their number. Section 2. The President shall preside at all meetings of the Association and of the Board of Directors; he shall exercise an active superintendence of the affairs of the Association as directed by said Board, and shall sign all official papers. Section 3. In case of removal, absence or temporary inabil- ity of the President, a President pro tem shall be elected by the Directors to perform his duties. Section 4. The Clerk shall make correct records of the pro- ceedings of the Association, and of the Board of Directors; he shall make and serve, mail or publish all notices and noti- '3 193 CO-OPERATION IN NEW ENGLAND fications and perform such other duties as ordered by the Board of Directors and shall be sworn for the faithful per- formance of his duties. Section 5. The Treasurer, in addition to the duties im- posed upon him by law, shall keep an accurate account of all money received by him, and of all money paid out or invested by him; he shall furnish said Board, when so required, with an accurate account of all assets, debts and general business of the Association; he shall keep a correct record of the amount of stock or other money invested in the Association by each member, and shall furnish the Clerk with a list of Stock- holders' names, at least ten days before each general or special meeting; he shall give a bond with two good and suffi- cient securities to the acceptance of said Board for the faithful performance of his duties, and the safe keeping of all property placed in his hands. Section 6. The Auditors, who shall hold no other office in the Association, shall make a thorough examination of the books and accounts of the Association on the termination of each half year, commencing with the month of January in each year and oftener, if so required, by the Board of Di- rectors; every statement of the financial condition of the Association made shall be examined, and if found correct, shall be approved by them. Section 7. The Board of Directors shall have general con- trol of the affairs of the Association; they may make any rules for their guidance, which will not conflict with these By- Laws; they shall meet, at least, once in two weeks, and oftener if necessary, meetings to be held the first and third Thursday of each month; they shall have the power to re- move the Clerk or Treasurer for malfeasance in office or for other good cause. The Treasurer shall make a statement on or before the Fifteenth day of each month of the receipts and expenses of the previous month and a correct copy shall be hung in a conspicuous place for the inspection and information of the Members. 194 BY-LAWS RIVERSIDE ASSOCIATION Section 8. The Board of Directors shall appoint a Manager to conduct the business of the Association; they shall hire such number of employees for said Manager as, in their opinion, may be required for the prompt transaction of the business of the Association, subject in all things to their direc- tion and control; they shall also fix the salaries of said Man- ager and employees, and shall have the power to discharge or suspend them at any time. Section 9. Three Directors shall constitute a quorum and no director shall act as Manager of the Store. Article IV Section i. A full inventory of the property of the Associa- tion shall be made on the first of January and July of each year. Section 2. The Manager, in conjunction with the Direc- tors, shall fix percentages on goods to be sold, said percen- tages to be sufficient, in their judgement, to pay the current expenses of the Association, interests on Investments, de- preciation of Real Estate and Fixed Stock. Section 3. Any profits accruing after providing for those in the foregoing section shall be disposed of as follows: — One-tenth of same shall be placed to the credit of the Redemp- tion Fund, and the remainder credited to the several members pro rata on their purchases; said profits to members may be payable in two weeks after being declared. Section 4. Members who are purchasers must present their purchase books at the store to be audited between the ist and 1 5th of January and July of each year; those who do not, shall not be entitled to any profits on their purchases. Non- Stockholders shall allow the Treasurer to retain their profits until they amount to a share of Stock, which he may issue to them. Section 5. On a written notice from any member for the whole or part of Loan Capital placed to his or her credit, the same shall be paid by the Treasurer of the Association, pro- 195 CO-OPERATION IN NEW ENGLAND vided, however, that no member can withdraw within thirty days after notification more than $ioo and j5ioo every thirty days thereafter, unless otherwise ordered by the Board of Directors. Section 6. The Redemption Fund shall accumulate until it amounts to thirty per cent of the Capital Stock; and no money shall be withdrawn from it, except by a vote of the Association, and for a purpose which shall be specified in said vote. Section 7. The shares of stock shall be J5 each and be held by Members of the Association only, and be limited to sixty (60) shares each. Article V Section i. The general meetings of the Association shall be held on the first Monday of February and August in each year. Section 2. Special meetings may be called at any time by vote of the Board of Directors and shall be called by said Board on the written request of fifteen members of the Asso- ciation, stating their reasons therefor. Article VI Section i. Notice of the regular and special meetings of the Association shall be sent to each Stockholder, either by mail or personally, at least seven days previous to holding said meetings; said notices shall state the business to be transacted at such meetings and the time and place of holding the same. Section 2. Notice of every special meeting of the Board of Directors shall be delivered or mailed to each member thereof by the President or Clerk; if not delivered they shall be mailed at least twenty-four hours before holding said meeting. Article VII Section i. The President, Treasurer, two Auditors and four Directors shall be chosen at the annual meeting of the Asso- 196 BY-LAWS RIVERSIDE ASSOCIATION ciation in February, and shall continue in office one year, and until their successors are elected and qualified. Section 2. A vacancy in any office arising from whatever cause may be filled by the Board of Directors until a regularly called meeting of the Association. Section 3. On retiring from office, each officer shall pass over to his successor or to the Board of Directors all books, papers and other property of the Association in his possession. Section 4. Any officer may be removed at a general or spyecial meeting of the Association, by a two-thirds vote of the members present. Any Stockholder who is not credited with such stock two weeks before a regular called meeting, shall not be entitled to vote at said meeting unless by vote of the members present. Article VI II At any annual or semi-annual meeting of the Association, a majority of the members present may assign to the officers of the Association any remuneration as may seem to them de- sirable. Article IX Any person having any charge to make against any officer or employee of the Association, or have any complaints about the price or quality of goods purchased by him, or who wishes to make any suggestions for to carry into better effect the object of the Association may communicate the same in writing to the Board of Directors, and said Board must give the matter due consideration and their decision shall be entered in their records. Article X. Dissolution Section i. Whenever the dissolution of the Association shall be contemplated, a Committee of not less than seven members shall be appointed by the Association who shall proceed to sell its property and distribute the proceeds and all the funds of the Association to the Stockholders then 197 CO-OPERATION IN NEW ENGLAND represented in the Association pro rata according to such rep- resentations. Section 2. A motion to dissolve shall lay on the table for three months and must be carried by a two-thirds majority of the entire Stockholders. Article XI. Amendments, etc. Section i. These By-Laws shall not be altered or amended except by a two-thirds vote of members present at any regular called meeting, provided, however, that notice of any pro- posed amendment or alteration to be acted on, shall be in- serted in the notice calling such meetings. Section 2. No By-Law shall be suspended at any meeting except by unanimous consent. Section 3. All other By-Laws and rules and votes incon- sistent with these By-Laws are hereby annulled. APPENDIX III CONSTITUTION AND BY-LAWS OF THE GREY- STONE AND DISTRICT CO-OPERATIVE ASSOCIATION, INCORPORATED MARCH, 1909 Article I. Name Section i. This Association shall be known as The Grey- stone and District Co-operative Association, limited, of North Providence, R. I. Article II. Object Section i. The object of this Association, shall be the pur- chase and exchange of the products of labor and of general merchandise, on the co-operative plan, between producer and consumer. It will aim to furnish members and the public with the necessaries of life, unadulterated, and of good quality ; and from the profits of the business assist in the accumulation of savings by each member. Article III. Membership Section i. Any person, upon approval of the Board of Di- rectors, may become a member of this Association after being proposed by a member, paying an entrance fee of fifty cents, and signing a declaration of his or her readiness to take at least one share of stock, and to assist the Association by pur- chasing goods to the minimum value of Twenty-five Dollars per half year, and willingness to conform to the By-Laws of this Association. Such proposal shall give the person's name, occupation and address, and shall be signed by the member 199 CO-OPERATION IN NEW ENGLAND making the proposal, which shall be sent to the clerk with the entrance fee, and entered by him in a book kept for that purpose. If approved by the Directors, he or she shall be considered a member upon payment of at least one dollar ($i) on account of their subscription as otherwise provided. No member shall own or control more than forty (40) shares of the capital stock. Section 2. Candidates for membership rejected by the Directors shall have the power of appeal through any member to the general meeting. Any person rejected shall have his or her entrance fee returned on application. Section 3. At the general oifice a list of members' names, occupations, and residences shall be kept, and no person shall be deemed a member unless his or her name appear on this list. Article IV. Meetings Section i. The regular meetings of this Association shall be held half yearly on the last Wednesday in November and May. Section 2. Special meetings may be called by the President, by and with the consent of a majority of the Directors; and shall be called by him, upon the receipt of a written request of nine members of the Association. Section 3. At all meetings of the Association twelve mem- bers, and at all meetings of the Directors, five Directors shall constitute a quorum for the transaction of any and all busi- ness. Section 4. Notice of all meetings shall be posted by the Secretary in a conspicuous place in the store or stores three days previous to the same. In the case of special meetings such notice shall state the object of the meeting. Article V. Officers Section i. The officers of this Association shall consist of a President, Vice-President, Secretary, Treasurer and seven 200 BY-LAWS GREYSTONE ASSOCIATION Other persons, who with the exception of the Secretary shall constitute the Board of Directors. Section 2. All elections of officers shall be conducted by Ballot, and no member shall be entitled to more than one vote. It shall require a majority of all the valid votes cast to elect. Where there are more than two candidates for the same office, the one receiving the lowest number of votes on each ballot shall be dropped until an election is secured. Section 3. The Board of Directors shall be elected as fol- lows, three at the November meeting and four at the May meeting, and that all nominees be nominated from the body of the hall. Section 4. The Treasurer and Secretary to hold their offices until either suspended by the Board of Directors, or called upon to resign by the members at a general meeting. Section 5. No person shall be eligible for the office of Di- rector, who has not been a member of the Association for at least six months; or be eligible for President, who has not been a Director twelve months or if he holds any other office or place of profit under the Association; or if he is concerned in, or participates in the profits of any contract with the As- sociation; or if he carries on the same business as the Asso- ciation; or if he has a relative employed by the Associa- tion. Section 6. There shall be two or more auditors, who shall be elected by ballot, and shall retire alternately at the half- yearly meetings each year; and shall be eligible for re- election. Article VI. President Section i. The President shall preside at all the meetings of the Association, and of the Directors; and in case there is a tie vote he shall give the casting vote. In his absence the Vice-President shall preside. He shall receive and safely keep all bonds which may be required of any officers or em- ployees, of the Association. He shall sign all documents issued by the Association or Directors, and shall in conjunc- 201 CO-OPERATION IN NEW ENGLAND tion with the Treasurer, sign all cheques issued by the Di- rectors; he shall have the general supervision of the affairs of the Association, and faithfully perform all other duties per- taining to the office, as required by law, or ordered by the Association. Secretary Section 2. The Secretary shall attend all meetings of the Association and Directors, and shall keep a true and faithful record of the proceedings of all such meetings; and shall preserve and keep on file all papers and documents belonging to the Association, except those belonging to the Treasurer's office; he shall produce any paper, document or record, in his possession belonging to the Association, and read the same at the request of the President at any meeting; he shall by the direction of the President, give due notice of all meetings of the Association and of Directors in accordance with these by- laws; he shall faithfully perform all other duties pertaining to his office as ordered by the Association; and shall deliver to his successor in office, all books, papers and documents, and other property in his possession belonging to the Association. Treasurer Section 3. It shall be the duty of the Treasurer to receive all money belonging to the Association. He shall, under the direction of the President, draw all money for the payment of claims against the Association, which have been approved by the Directors. He shall make a monthly report to the Di- rectors, and a semi-annual report to the shareholders. He shall give such bonds for the faithful performance of his duties as the Directors shall require and approve. He shall deliver to his successor in office, all books, money, vouchers, and other property in his possession, belonging to the Asso- ciation. He shall faithfully perform all other duties pertain- ing to his office, as required by law, or ordered by the Associa- tion. BY-LAWS GREYSTONE ASSOCIATION Article VII. Management Section i. The Board of Directors shall have control of all business carried on by, or on account of the Association; the purchase and sale of goods; the engaging of managers, and of all other persons necessary for conducting the business; providing for places of meeting; the rates of payment for work, or services done on account of the Association; and the regulation of salaries and securities of the managers and employees to whom it may assign such duties as it shall deem proper. Section 2. The Board of Directors shall, with the consent of a general meeting, have power to lease, purchase or erect, any building or buildings for the purpose of the Association, and to mortgage, rent or sell such buildings, or any part thereof. Section 3. The Board of Directors shall meet and shall pro- vide for the detailed work of the business by the appointment of sub-committees. It shall in all things, act for and in the name of the Association; and all acts and orders under the powers delegated to it shall have like force and effect as if they were acts and orders of a majority of the members of the As- sociation, at a general meeting thereof. Every question at such meeting of the Board shall be decided by a majority of votes cast. Section 4. The President, at the request of three members of the Board, shall call a special meeting thereof, by giving one day's notice in writing to the Secretary; but no business shall be taken into consideration other than that specified in the notice. The Board shall convene special meetings of the members at their discretion, allowing three days' notice of the same. Section 5. The Board shall cause the accounts of all busi- ness carried on, to be regularly entered in proper books, and half yearly report, and balance sheet to be made out, covering all business to the end of each half year; which, together with all necessary vouchers shall be submitted to the auditors not 203 CO-OPERATION IN NEW ENGLAND less than 14 days previous to such meeting; and shall be printed and distributed to the members as early as possible thereafter. Article Vlll. Auditors Section i. It shall be the duty of the Auditors, at the close of each half year's business, to audit the accounts of the Treasurer and other officers; including stock on hand; de- manding for this purpose any information they may see fit, and report condition of same at the half yearly meeting. Section 2. No servant of the Association can be an auditor. Any ordinary meeting in lieu of electing an auditor, may direct that the accounts shall be audited by a public auditor; and thereupon the appointment of the then continuing Audi- tor or Auditors, shall be vacated; and the audit shall be con- ducted by such public auditor. Article IX. Funds and Revenues, and Interest Section i. The capital stock of this Association shall not exceed one hundred thousand dollars ($100,000); to be divided into shares of the par value of five dollars ($5) per share; and they shall bear interest at the rate of five per cent, per annum payable half yearly. Section 2. The Directors shall at any time have power with the sanction of the half yearly meeting, to reduce the rate of interest. Section 3. Interest will commence on the first of each month upon all fully paid up shares. No interest will be paid on shares withdrawn before the end of the half year. Article X. Profits and Dividends Section i. From the absolute profits, after paying the ex- penses of the Association, not less than five per cent, per annum shall be set aside for a sinking fund; which shall be allowed to accumulate until it amounts to a sum equal to twenty-five per cent, in excess of the capital stock. 204 BY-LAWS GREYSTONE ASSOCIATION Section 2. Receipts from entrance fees shall be added to the sinking fund of the Association. Section 3. Dividends shall be declared half yearly. In de- claring dividends, non-members shall be entitled to one-half the per cent, that shall be declared to members. All divi- dends on purchases, and interest on shares shall be due and payable, only in accordance with these by-laws, and at such place as the Directors shall from time to time designate. Article XI. Withdrawals Section i. Any member of this Association desiring to withdraw from the Association the whole or any part of his or her stock, shall make a written application to the Di- rectors, and within thirty days from the date of such applica- tion the Board may pay or cause to be paid such applicant, the amount of shares he or she may desire to withdraw. But if the Board fail to pay or cause the same to be paid within thirty days, said applicant may transfer his or her shares to any other member, provided the member has not the full number of shares allowed by the by-laws, but in no case shall he transfer his share to persons not members of the Associa- tion, unless he first obtain consent of the Board of Directors, which consent shall be signed by the President and Secretary and entered on the records of the Association. In case a member transfer his share or shares he must surrender his certificate to the Board of Directors, and the Board shall cause a new certificate to be issued to the person to whom he makes such transfer. Section 2. Any member being in distress may withdraw any shares he or she may have in the Association at the dis- cretion of the Board of Directors. Article XII. General Regulations Half years shall commence November ist and May ist. All purchases from the Association shall be made strictly for cash. 205 CO-OPERATION IN NEW ENGLAND Each member of the Association shall be provided with a book of account in which shall be entered a statement of shares held, with half yearly dividends and interest. Each purchaser shall be provided with checks or a pass book at the option of the Directors; which shall show the amount of purchases on which dividend will be declared. The same to be returned as provided from time to time by the Board of Directors. Any complaint as to quality or prices of goods sold by the Association, or respecting the conduct of any of its employees, should be made to the Directors in writing; signed by the party making the complaint; and such complaint shall be investigated and decided by the Board. All sales are to be made at the average retail market price. Each member shall be entitled to a certificate of his stock, under the seal of the Association, signed by the President and Treasurer. The Board of Directors may suspend any member from participating in the benefits of the Association who persists in conduct injurious to the Association, and who fails to con- form to its by-laws and regulations, until it shall submit the matter to a Shareholders' meeting, giving the offender three days' notice thereof, which meeting shall confirm and extend the action of the Directors, or otherwise, as it may think proper. Article XIII These by-laws can only be altered or amended at the semi- annual meetings or at a special general meeting of the mem- bers of the Association called in accordance with Article IV, Sec. 2, provided that a notice setting forth the proposed alteration or amendment, shall have been posted in the store at least 14 consecutive days before the meeting, providing also, that two-thirds of the members present vote in the affirmative. 206 APPENDIX IV BY-LAWS OF THE NEW ENGLAND CRANBERRY SALES COMPANY, INCORPORATED MAY, 1911 Article L Objects The objects of this corporation shall be to increase the sale and use of cranberries, to reach a wider market for the same, to improve the packing of cranberries and to establish definite grades or brands of cranberries, which grades or brands shall be maintained to the standard of each grade or brand so that purchasers may rely on the quality of the same. Article II. Officers The officers of this corporation shall consist of a Board of Thirty-three Directors; a President and a First and a Second Vice-President, all to be chosen by and from the Directors; a Treasurer and a Clerk; such officers need not be stock- holders. The Australian Ballot shall be used in choosing all these officers. At meetings of the Board of Directors seven members, present and voting, shall constitute a quorum except for the election of officers, when a majority of the Board shall con- stitute a quorum. The Board of Directors, the Treasurer and the Clerk shall be elected annually by ballot at the annual meeting and shall hold office for one year or until their successors are elected and qualified. The President and Vice-Presidents shall be elected annually by the Board of Directors as soon after the annual meeting as possible and shall hold office for one year 207 CO-OPERATION IN NEW ENGLAND or until their successors are elected and qualified. The Directors shall have power to fill all vacancies occurring from any cause in offices filled by election of the corporation, until the same are filled by the corporation. The duties of the President, Vice-Presidents, Treasurer and Clerk shall be such as usually appertain to such offices. The Board of Directors shall have full control, supervision and direction of the business of the corporation and shall have power to employ and discharge all other necessary and proper servants and agents, including at least three inspectors to superintend the grading, branding, packing and shipment of fruit, and to fix their compensation. The Directors may adopt rules for their own meetings including the number necessary for a quorum and may appoint a clerk, and any action of the Directors made in writing signed by at least two- thirds of the Directors shall have the same force and effect as a vote passed at a regular meeting. The Treasurer may be required by the Directors to give bonds in such sum and with such sureties as they may ap- prove. Article III. Sales Agent The Board of Directors shall make a contract for the term of not more than one year with a sales agent who shall give bond for the prompt remittance of money received and for the faithful performance of his duties in such sum and with such sureties as the Directors may approve. Article IV. Meetings The annual meeting of the corporation shall be held on the first Thursday after the first Tuesday of April of each year. Special meetings may be held at any time by order of the President or on written request of three Directors or nine stockholders. All meetings shall be held at the office of the Company in Middleboro unless the Directors by a two- thirds vote appoint some other town or place in Massachu- 208 BY-LAWS CRANBERRY SALES COMPANY setts, and shall be called by the Clerk, by mailing postpaid, seven days before, notice of said meeting to all stockholders. One-third of the stock outstanding represented in person or by proxy shall constitute a quorum. Article V. Procedure Cushing's Manual shall govern this corporation in all questions of parliamentary procedure. Article VI. Accounts The corporation shall keep full and proper accounts and shall make as prompt settlement with growers of their re- spective accounts as possible. Article VII. Stock and Stockholders Only persons, firms, associations or corporations engaged in business of growing cranberries shall become stockholders in this corporation and no such person, firm, association or corporation shall become a stockholder without the approval of two-thirds of the Board of Directors present and voting at any meeting called for the purpose. Any such person, firm, association or corporation desiring to become a stock- holder shall sign an application to the Board of Directors and if approved by two-thirds of the directors, present and voting, shall sign all papers required by these by-laws and receive one share of stock on payment for the same. One share of stock only shall be held by the owner or owners of any bog or bogs under the same ownership. No such per- son, firm, association or corporation shall be a stockholder if his or their bog is managed by a person who has the manage- ment of another bog, the owners of which are not a stockholder in this corporation. Article VIII. Dividends Dividends shall be declared from time to time by the Di- rectors not exceeding 6 per cent, per annum, and the corpora- 14 209 CO-OPERATION IN NEW ENGLAND tion may accumulate a surplus as may be voted by the Board of Directors. Any assets not held as capital, surplus or to meet liabilities shall be distributed by the Directors from time to time among the stockholders in proportion to the amount of cash received by each stockholder for his or their sales to the company for the preceding crops since the last distribution. Article IX. Redemption or Calling in of Stock Whenever any stockholder ceases to sell his crop of cran- berries to this corporation according to his contract, the Di- rectors shall call in said share of stock and take the same for the use of the corporation. In case any stockholder, his heirs, executors, or administrators, or assignee on execution desires to sell his stock he shall offer the same to the Directors for the use of the company and the Directors shall purchase the same for the use of the company. Whenever any stock- holder wilfully violates any of the rules or regulations of the Directors in regard to grading, branding, packing or market- ing cranberries or wilfully violates his agreement in regard to selling his crop to the corporation, or for any other reason is not qualified to be or to continue to be a stockholder under these by-laws, the Directors may call in said share of stock and take the same for the use of the corporation and cancel any agreement between said stockholder and the corporation. In all cases where stock is taken by the Directors for the use of the corporation the stockholder shall transfer and assign his certificate to the corporation and shall be paid therefor by the corporation such amount as the Directors may ap- praise the value of the same. Article X. Brands of Cranberries The Directors shall establish from time to time such grades or brands of various kinds of cranberries as they think ad- visable, and shall give each grade or brand a distinctive name and shall specify the requirements of each grade or brand to 210 BY-LAWS CRANBERRY SALES COMPANY the end that such grade or brand may become known in the open market as cranberries having the requisite requirements of such grade or brand. The Inspectors of the company shall inspect all berries before shipment and determine the grade or brand of the same and all stockholders shall label their crop with the grade or brand so determined with label furnished by the corporation. In case any stockholder is of the opinion that such grade or brand is not correct he shall have the right of appeal to the President or one of the Vice-Presidents who shall thereupon appoint a committee of three disinterested persons, or by agreement with the stockholder one such disinterested person, who may or may not be stockholders, whose determination shall be final. The cost of such regrading shall be paid by the company if the committee gives the berries a higher grade and by the stockholder if the committee gives the berries the same or a lower grade. Article XI. Sales Each stockholder by becoming a stockholder agrees to sell his entire cranberry crop to the corporation and shall also enter into a contract so to do, but this provision shall be con- sidered a binding contract even if said separate contract is . not entered into. Each stockholder shall sign an undertaking by which he agrees to abide by these by-laws and by all rules and regulations adopted by the corporation or the Directors and assenting to the provisions in regard to the sale, transfer, cancellation, redemption or calling in of stock. Article XII. Withdrawal Any stockholder may cancel his agreement and cease to be a stockholder and assign his stock to the corporation as above provided at any time after one year's crop has been sold to the corporation by the stockholder, but unless notice of such cancellation is given in writing to the Directors before May 1st of any year, or not later than ten days after settlement has 211 CO-OPERATION IN NEW ENGLAND been made for his crop previous to said May ist, it shall not take effect until after the next crop has been harvested and sold and delivered to the corporation; but such agreement shall be considered in force until cancelled as above or by mutual consent. Article XIII. Payment for Sales The Directors shall from time to time designate in advance definite periods by dates and may from time to time extend or restrict said periods and shall ascertain the average net price per barrel received by the corporation for all berries of each grade or brand sold the corporation by stockholders during each such period, and each stockholder shall receive in payment for his berries of each grade or brand sold to the corporation during said period the average net price per barrel received by the corporation for berries of the same grade or brand sold the corporation during such period less seven per cent. Notification of all such periods or extension or re- striction thereof shall be given all stockholders as soon as designated. As far as possible the corporation shall purchase all cranberries which any stockholder desires to sell during any period. Article XIV. Non Graded Crop In case any berries in the opinion of the Directors or In- spectors do not conform to any grade or brand established by the Directors, such berries shall be sold by the corporation as a separate item and paid for to the grower in the net amount received therefor by the corporation less seven per cent, of the net sale price received by the corporation. All non graded berries shall be shipped with plain heads unless the Directors otherwise authorize. Article XV. Poor Packing, etc. In case the price received by the corporation for any cran- berries of any grade or brand sold by it is less than the regular 212 BY-LAWS CRANBERRY SALES COMPANY price for berries of the same grade or brand on account of poor packing, poor screening or any defect in the berries themselves existing at the time they were delivered to this corporation, such berries shall be paid for by the corporation at the net price received therefore by the corporation less seven per cent, and not at the average price above provided. When any lot of cranberries sells for less than the average price of such berries in the same general shipment period, or when the average price of any brand in a general shipment is greatly below the market price for such berries at that time and the whole, or any part of the discount in price is caused by condi- tions beyond the shipper's control, the directors may add to the net price received for such lot, or lots, a sum sufficient to offset such part of said discount as they judge proper, to relieve the shipper, or the general shipment to which the lot belongs, from unreasonable loss; provided, that no portion of any discount in price, caused by a shipper's fault, or the poor quality of the berries sold at the reduced price, shall be made good. All lots of cranberries not loaded in refrigerator cars shall be treated as separate item shipments if they arrive at destination frosted. All lots sent in refrigerator cars which arrive at destination frosted, may be averaged, if in the opinion of the directors the shipper has used proper precaution to prevent such injury. The decision of the Directors in all cases arising under this article shall be final. Article XVI. Shipments All stockholders shall sell, deliver and ship their crop to the corporation when and as may be directed by the Direc- tors, but the Directors shall as far as possible so regulate purchases and shipments as to make them pro rata among the stockholders in proportion to their respective crops but the corporation shall purchase the total crop of each stockholder. The Directors shall, however, purchase at any time any cran- berries which in their opinion and the opinion of a stockholder require immediate sale. The Directors may exercise the 213 \ \ CO-OPERATION IN NEW ENGLAND authority given under this by-law by and through the Sales Agent. Article XVII. Delivery All cranberries shall be delivered in barrels or boxes as may be ordered by the Directors or Sales Agent by the stockholder to the corporation F. O. B. at the usual railroad station of the stockholder. Three standard Massachusetts crates shall constitute a barrel. All berries which are offered by a stock- holder for sale to the corporation during any period and which offer is accepted by the corporation, and all berries which may be directed by the Directors to be delivered to the cor- poration during any period, shall be considered for the pur- pose of settlement for the same as sold and delivered to the corporation during such period, if the Directors decide that the interest of the corporation requires it, whenever the same may be actually delivered to the corporation. Article XVI 1 1. Breach of Contract In case any stockholder shall sell any of his crop to another party than this corporation in violation of his agreement, such stockholder shall pay to the corporation seven per cent of the amount of such sales and shall also be liable to pay to the corporation any and all direct or indirect damage which may accrue to the corporation on account of such breach. Article XIX. Reports Each stockholder shall make reports to the Directors upon blanks furnished by the corporation as often as requested by the Directors; such reports to cover such questions in regard to the crop, acreage, amount picked and to be picked, etc., as the Directors may deem advisable. Article XX. Amendment These by-laws may be amended at any meeting called for the purpose by a two-thirds vote of the shares present and voting thereon. 214 BIBLIOGRAPHY BIBLIOGRAPHY The following are titles of accessible books, pamphlets, and magazine articles dealing specifi- cally with some phase of co-operation in New England. Other sources used by the writer are indicated in the Preface. An annotated bibliography on Industrial Co- operation, especially in its European aspect, has been published by the writer in A Guide to Read- ing in Social Ethics and Allied Subjects, by Teachers in Harvard University, Cambridge, Harvard University, 1910, pp. 196-99. Aiken, D. W. : The Grange, its origin, progress, and educa- tional purposes. Washington, Government Printing Office, 1883. Bemis, E. W. : Co-operation in New England, Publications of American Economic Association, Vol. I, No. 5. Baltimore, Guggenheimer, Weil and Co., 1886. Co-operation in New England. Quarterly Journal of Economics, XI: 499 (1897). , Co-operative Distribution. Bulletin United States De- partment of Labor, No. 6. Washington, Government Printing Office, Sept., 1896. BuTTERFiELD, K. L. : Chapters in Rural Progress. Chicago, University of Chicago Press, 1908. Chamberlin, E. M.: The Sovereigns of Industry. Boston, Lee and Shepard, 1875. 217 BIBLIOGRAPHY Co-operative Association of America: The Co-operator, Lewiston, Me., 1901-02. The American Co-operator. Lewiston, Me., 1902-04. Third Annual Pamphlet. Lewiston, Me., 1903. Souvenir Pamphlet and Program (Faneuil Hall Conven- tion), Lewiston, Me., 1904. The Spirit of Co-operation. Lewiston, Me., 1905. Co-operative Union of America: American Co-operative News, Cambridge, Mass., Prospect Union, 1896-99. Coulter, J. L. : Co-operation Among Farmers. New York, Sturgis and Walton Co., 191 1. Cross, LB.: The Co-operative Store in the United States. 1 2th Biennial Report Bureau of Labor, State of Wis- consin, 1905-06. Co-operative Stores in the United States. New Ency- clopedia of Social Reform, W. D. P. Bliss, editor. New York, Funk and Wagnalls Co., 1908. CuMMiNGS, E.: Co-operative Stores in the United States. Quarterly Journal of Economics, XI: 266 (April, 1897). Flower, B. O. : Convention of Co-operators at Lewiston. Arena, XXVIll: 320 (Sept., 1902). Ford, J.: The Co-operative Franco-Beige of Lawrence. Survey, XXVIll: 68 (April 6, 1912). Foster, F. J.: The Grange and the Co-operative Enterpriess in New England. Annals of the American Academy of Political and Social Science, Vol. IV (March, 1894). Gold, T. S.: Handbook of Connecticut Agriculture. Hart- ford, Conn., The Case, Lockwood and Brainard Co., 1901. International Co-operative Alliance: International Co- operative Bibliography. London, 1906. Kelley, O. H.: Origin and Progress of the Order of the Patrons of Husbandry in the United States; a history from 1866 to 1873. Philadelphia, J. A. Wagenseller, 1875. 218 BIBLIOGRAPHY Massachusetts Bureau of Statistics of Labor: Dis- tributive Co-operation in New England. Labor Bulletin, No. 47. Boston, Wright and Potter Printing Co., March, 1907. Sixth Annual Report, Part V, p. 451, 1875. Eighth Annual Report, p. 51, 1877. Seventeenth Annual Report, p. 155, 1886. Massachusetts : Abstract of the Certificates of Corporations Organized Under the General Laws of Massachusetts, Boston, Wright and Potter Printing Co., 1903-11. Report of the Committee on the Cost of Living, pp. 322- 332, Boston, Wright and Potter Printing Co., 1910. MacCabe, J. D. : History of the Grange Movement. Chi- cago, National Publishing Co., 1874. MoRMAN, J.: Business Co-operative Organizations in Agri- culture. Cyclopedia of American Agriculture, IV: 255-264, New York, The Macmillan Co., 1910. Myrick, H.: How to Co-operate. New York, O. Judd Co., 1891. Orvis, J.: A Plan for the Organization and Management of Co-operative Stores and Boards of Trade under the Auspices of the Order of Sovereigns of Industry. Worcester, Mass., Mechanicsburg: Sovereigns of In- dustry Bulletin Print, 1876. Peck, B.: The World a Department Store. Lewiston, Me., Peck, 1900. Rhodes, J.: Etat de la Co-operation aux Etats-Unis. 3d Congress International Co-operative Alliance, 1897. London, International Co-operative Alliance, 1897. Vrooman, H.: The Co-operative Association of America. Arena.XXVl: 578(1901); XXVllI: 602(1902). Wright, C. D.: Co-operative Distribution in Massachu- setts. 17th Annual Report Massachusetts Bureau Statistics of Labor, p. 49. Boston, Wright and Potter Printing Co., 1886. A Manual of Distributive Co-operation. Boston, Wright and Potter Printing Co., 1885. 219 INDEX INDEX AcusHNET Co-operative As- sociation, 1 8 Agrictiltural Co-operation: by-laws of New England Cranberry Sales Company, 207; cost reductions of supply associations, method of obtaining, 92; dairy in- dustry, 132-174; division into two groups, 89; ex- pansion, conditions that promote, 178-180; federa- tion among granges, 103- I II ; geographical extent, 17s; granges and their activi- ties, 92-111; history of, in Europe, 11; interpreta- tion and prospect, 175-185; movement farther advanced than the workingmen's, 176; Raiffeisen bank, 11; sale of produce, 112-131; state ex- changes, 17s; supply as- sociations, three types, 89- 92. See also Dairy Industry; Grange; Produce; Supply Associations; and names of associations AORICtTLTtTRAL JOURNALS: State departments, state colleges and experiment stations, influence of, 178 American Co-operative News, 78 American Co-operator, 80 American Cranberry Ex- change, 126 American Wholesale Co-op- erative Society, New York City, 82 co-operative selling, Apples: 122 Arlington Co-operative As- sociation, Lawrence, Mass. , 65, 69, 70 Aroostook County Potato Growers' Association, 119 Asparagus: co-operative culti- vation, 127 Associations of Farmers: con- stitution and by-laws of an association, 214; dairy industry, 132-174; federa- tion among granges, 103- iii; grange, 92-111, 175; movement farther advanced than workingmen's, 176; need of capable leadership, 185; obstacles to success are ignorance of methods and isolation, 181; sales associations, 1 14-131 ; supply associations, 89-92. See also their names Associations of Workingmen: cash business, 64; divi- dends, 63 ; failures and their causes, 64-71, 176; federa- tion of societies, 73-84; forming influences, 58; hin- dered by state laws, 60, 61: ignorance of members of history of co-operative prac- tice, 83; impractical prin- ciples, 58; isolation of so- 223 INDEX cieties chiefly responsible for failure, 73; lack of cor- porate sense, by members, 83; laxness in practice, 63; number that have pros- pered, 58; opposition of trades-people, 5g; share- holder employes, 64; spirit of co-operation, 72; sta- tistics concerning, 61-65; trade discounts, 63. See also their names Bakeries, Consumers' Co-op- erative, 38, 44, 54 Bakers River Creamery, 159 Bank Men: co-operative society, 47 Banks: co-operative, vi,vii, 5,77 Barlow, R. H., 78 Barre Union Co-operative Store, Barre, Vt., 40, 63, 83 Belgian Immigrants: and the Co-operative Franco-Beige of Lawrence, Mass., 37; their co-operative idealism, 38; their part in the Law- rence strike, 39 Belgium: People's Palaces, i8i; status of co-operation, 10 Bemis, E. W., 15, 22, 64 Beverly Co-operative Asso- ciation, Beverly, Mass., 24, 63,65 Bibliography, viii, ix, 217 Boarding House, Co-opera- tive Finnish, Fitchburg, Mass., 43 Boston : first co-operative movement began in, 13; Co-operative Association , 52; Co-operative Exchange, 80, 81; Co-operative Flower Growers' Association, 114, 115; Co-operative Flower Market, 115, 116; Co- operative Milk Producers' Association, 167; 166, Tai- lors' Associative Union, 1 849 , 49 Brattleboro Grange Store, 103 Brighton Industrial Co-op- erative Society, 68 Brockton Co-operative Boot and Shoe Company, 50, 52 Buckley, John P., 119 Building and Loan Associa- tions, vi Business Principles. See Co- operative Enterprise Butter. See Creameries By-Laws : certain co-operative associations, 193-214 Cambridge Co-operative Asso- ciation, 78, 79 Capitalistic Combination: and co-operative enterprise, 177, 178, 182-184 Cash Basis: 7, 8; Grey stone As- sociation, 32 Cash Business: two stores, 64 Cattle-breeders' Co-opera- tive Association, 171, 173 Central Union Association, New Bedford, Mass., 16, 17 Chambers op Commerce i 79 224 INDEX Co- Co-i Cheese Factories : co-opera- tive, 133, 164-165 Cigar Makers' Co-operative Association, 52, 53 Cigar Making, 4q, 52, 53 Clubs, Purchasing. See Pur- chasing Coal Companies, 27 College Co-operative Stores, 27 Commission Sales System, 31. See Trade Discount Connecticut Laws: relative to CO - operative corporations, 60, 61, 189-igi Connecticut State Grange: membership, 93; state ex- change, 108; trade dis- count system, 97, 98 Constitution and By-laws : certain co-operative asso- ciations, 193-214 Consumers' Associations: de- finition, 4; relation to pro- ducers' associations, 1 29- 131, 184, 185 Consumers' Federated Asso- ciations: and the owner- ship of mills and factories, 76. See also Co-operative Union; Co-operative Whole- sale; Federation Co-operation: use of term, viii, 151, 153 Co-operative Association op America, 79, 80, 81 Co-operative Building Com- pany, Boston, Mass., 55 Co-operative Cigar Company, Stamford, Conn., 53 Co-operative Commonwealth, 15 225 8; advocated by Bradford Peck, 80 OPERATIVE Elenese, Somer- ville, Mass., 40 OPERATIVE Enterprise: ag- ricultural, 87-174; aim of, 4; appeal is economic, 182- 185; beginning of modern in- dustrial, 6; business princi- ples, 7, 8, 15, 16, 22; de- mands for science in man- agement and for organiza- tion, 180; extent, 9-12; failures, causes and remedies, 64-71, 176; first co-opera- tive movement, the union stores, 1845, i3~2o; handi- cap of social conditions, 176-178; hastened by capi- talistic combinations, 177, 178; history of agricultural, abroad, 11; hopeful signs for more comprehensive and vital movement, 178; im- migrants, associations among 28-47; impractical princi- ples in New England, 58; industrial, 3-84; interpre- tation and prospect, 175- 185; laws in New England, 60, 61, 189-192; main divi- sions, s; population, in- fluence of changes in, 29; power of the movement em- braces creation of construc- tive environment for citizen, 181; practicabihty of co- operation in New England proved, 180; productive co- operation, the first, 49; re- sults best recorded in Eu- rope, 12; second co-opera- tive movement, the Sove- reigns of Industry, 1874, 21- 27; social conditions handi- cap co-operative enterprise, 176-178. See also Agricul- tural Co-operation; Indus- INDEX trial Co-operation; Cream- eries; Cheese Factories Co-operative Failming, 126 Co-operative Feed Company, North Haven, Conn., loi Co-opeeative Franco-Belge, Lawrence, Mass., 37^39 Co-operative Packing Box As- soc., Boston, Mass., 55 Co-operative Publishing Com- pany, 55 Co-operative Societies : defi- nition, 5 Co-operative Society op Bank Men, Boston, 47 Co-operative Spirit, 72, 73, 142 Co-operative Store Company, Kingston, Mass., 65 Co-operative Union of Amer- ica, 78, 79 Co-operative Union, British: established in 1869, statis- tics and scope of activities, 9, 73, 77 Co-operative Wholesale So- ciety, England, 76 Cornish Creamery, New Hamp- shire, iss Cosmopolitanism: danger of, 33 Co-workers' Fraternity Com- pany, 80 Cost oe Living: and the co- operative movement, 4, 184, 185 Country Life Commission: in- fluence of report of, upon the growth of co-operative endeavor, 104, 180 Cow-testing Associations, 171 Cranberry Growers: co-op- perative sales associations, 124-126, 181 Creameries, Co-operative, 134-165: decline in number, causes, 154-163; employes in purely co-operative, 142; first attempts at co-opera- tion, Goshen, Conn., 135; inconstancy of patrons, 160; joint-stock type, 143-163; membership, in joint-stock, 145; membership, in pure type, 140, 141; members and patrons, difference in number, 140, 141; methods of business, '147-149; num- ber of joint-stock, 145 ; number of purely co-opera- tive, 137, 138, 140; oldest surviving creameries of the pure type, 136, 138; prices paid for butterfat, 147; pure type, 134-143, 1S4-163; reserve and surplus funds, 146; spirit of co-operation as shown at annual meet- ings, 142; spread of, dates from 1880, 136; statistics, 147-154; sub-stations, 149; typical democratic cream- ery, Easthampton, Mass., 138-140; voting by mem- bers, in pure type, 138; vot- ing by shares, in joint- stock, 143, 144. See also Dairy Industry; Cheese Fac- tories; Cow-testing; Milk Credit; given by stores, 64, 79 Credit Unions, vi, vii Cromwell Grange, Cromwell, Conn., 98 Cummington Co-operative Creamery, Cummington , Mass., 143, ISS, 164 226 INDEX Dairy Industry, Co-operation IN, 132-174; cattle-breeders' associations, 171, 173; cheese factories, 164-165; cow- testing associations, 171; creamery the most co-op- erative institution, 133; de- cHne in number of cream- eries, causes, 154-163; ex- tent of the field of co- operation, 173; federation, lack of, 153; first attempts at Goshen, Conn., 135; ignorance of the co-opera- tive ideal, divergence from co-operative methods, 152, 158; joint-stock creamery, 143-147; methods in busi- ness, 147-154; methods of government in creameries, 147-154; milk sale and distribution, societies to reg- ulate, 165-170; pure type of co-operative creamery, 134-142; state dairymen's associations, 132, 152, 171; statistics, 147-154. See also Creameries ; Milk Danvers Co-operative Asso- ciation, Danvers, Mass., 21 Deereield Valley Creamery Association, 146 Definition or Co-operation, 4, S, 134 Democracy: education in, 183, 184; in co-operative stores, 7; in creameries, 138. See also Membership; Voting Denmark: most co-operative nation in the world, 12 Department Stores and co- operative associations, 46 Dividends: on purchases, 8, 63 Easthampion Co-operative Association oe Massa- chusetts, 65, 68 Economic Aim or Co-opera- tion, 4, 5 Economic Appeal oe Co-opera- tion, 182-185 Education in Co-operation, 8, 73. 74 Eggs: co-operative sale, 127, 169 Ely, R. E., 78 Employes: as shareholders, 64; status in British co-opera- tive industry, 76 England. See Great Britain English Immigrants : Roch- dale associations among, 29 Enterprise Creamery, 140 Ethical Purpose of Co-opera- tion, 4, 8, 22, 59, 93, 113, 181, 183, 184 Europe : co-operative move- ments in, 10 Everybody's Co-operative Grocery Store, 47 Exchange Bulletin, 108 Exchanges. See F ederation Among Granges Experimentation; necessity of, 131 Factory Workers' Co-opera- tion. See Manufacture, Co- operation in Failure of Co-operative As- sociations : causes and rem- edies, 64-71, 176. See also 227 INDEX Union Stores; Sovereigns of Industry; and their names Fall Rtver Workingmen's Co- operative Association, 65 Farmers' Movement. Se& Agri- cultural Co-operation; Asso- ciations of Farmers Farmers' Unions, 119, 123 Farming: co-operative, 126 Federation Among Farmers, 103-111, 153: influence of Report of the' Country Life Commission, 104; initia- tion of movement by Mas- sachusetts State Grange, 105, 106; state exchanges, 106-109, 128; will greatly increase power of societies, 181 Federation Among Working- men, 73-84: attempts made , 77-84; central office and its possibilities for service, 73, 74; England, 9, 76, 77; ex- isting organized co-operative union in New England, 45, 82; ownership of mills and factories by consumers' as- sociations, 9, 76; wholesale store, advantages of, 75; will greatly increase power of societies, 181 Fellowship Farm Co-opera- tive Society, Westwood, Mass., 128 Fertilizers: co-operative pur- chase, 99-101, 106, 116 FiLENE Co-operative Associa- tion, 46 Finnish Immigrants : associa- tions, 42, 43; co-operative union of stores, 82; journals published, 44; sociahsts, 44; stores, co-operative uruon, 45, 82 First Swedish Co-operative Store Company op Quin- sigamond, Worcester, Mass. , 34,65 Flower Growers: co-opera- tive sales associations, 114- 117 Foundry Work, 49-51 France: status of co-operation, 10 Franco-Belge, Lawrence, Mass., 37 Franco Co-operative Com- pany, Fitchburg, Mass., 37, 63 Fraternity. See Ethical Pur- pose of Co-operation Freeport Co-operative Asso- ciation, Freeport, Me., 30, 33 French Canadians in New England, 36, 37 Fruit Growers : co-operative sale of produce, 121 Gardner Co-operative Asso- ciation, Gardner, Mass., 24 Gardner Finnish Co-opera- tive Company, Gardner, Mass., 42 German Co-operative Associa- tion, Lawrence, Mass., 35, 63,65 German Co-operative Stores in New England resemble Rochdale stores, 34 228 INDEX German Immigrants: associn- tions of, 35, 47; associations no longer growing, 36; Roch- dale methods prominent, 34 Germany: agricultural co-op- eration and the Raifieisen banlc, 11; evolution of co- operation, 28 GiFFOED, J. E., 105 Gold, T. S., 135 Goodwin, G. T., 163 Grain: co-operative purchase, 99-101, 106, 142 Granby Creamery Company, Granby, Conn., 136, 144, 146, 164 Grange: committees on co- operation, 95; experimental stage, 95; federation among, 103-111; founding of order, its purpose and objects, 92- 94; membership, 175; meth- ods and practice of 1908, 95-103; state exchanges, influence, 175; statistics, 93; wholesale exchanges for sale of produce, 128. See also names of states Grange Stores, 89, 95, 101-103, 127; early stores, 95; largest store at Houlton, Me., 102; method of distributing co- operative profits, 92; most important method of co-op- erative purchase, loi; or- ganization, 89 Great Britain: beginnings of industrial co-operation, 6, 9; consumers' co-operative movement, 57; Co-opera- tive Halls, 181; Co-opera- tive Union established in 1869, statistics and scope of its activities, 9, 73, 77; Co-operative Wholesale So- ciety, 76; evolution of co- operation, 28; factories, co- operative, urged by Robert Owen, 48; their decline, 57; International Co-operative Alliance, 74; manufactur- ing, co-operative, began in 1873, 9, difficulties of, 75; Rochdale movement, 1844, 6-10 Great Department Store at Lewiston, 80, 81 Geeystone and District Co- operative Association, Providence, R. I., 31, 32, 82; constitution and by- laws, 199 Hampton Co-operative Cream- ery Association, East- hampton, Mass., 138-140, iSS. 164 Harttoed County Tobacco Growers' Mutual Asso- ciation, 120 Hartford Market Gardeners' Association, 116 Harvard Co-operative Soci- ety, 27, 64 Harvard University, 27, 78 Hebrew Associations: bakery, 54; stores, 41 History of Co-operation creameries, 135; England, 6 factories, 49; grange, 92-95 New England stores, 13-47 HOLDEN, F. W., 169 HoTJLTON Grange Store, Houl- ton, Me., 102, 133 229 INDEX Immigrants: assimilation has- tened by trade and political issues, 178; co-operation on racial lines desirable, 34; Finnish workingmen excel others in co-operation, 45; German and Swedish asso- ciations no longer growing, 36 ; ideaUsm of the co-opera- tive Franco-Beige, 38; in- crease in co-operation, 45; non-English speaking immi- grants and co-operative stores, 34-47; Rochdale as- sociations of English im- migrants, 29-34. See also Finnish; Italian; etc. Incorporation or Co-opera- tive Associations, 60, 61, 189 Indian Orchard and Ludlow Co-operative Association, Springfield, Mass., 37 Industrial Co-operation, 3-84: aims and principles, 3 ; con- stitution and by-laws of co- operative associations, 193, 199; cosmopolitan sociahst store, new type of society, 45; department stores, 46; failure in New England, causes, 64-71, 176; federa- tion of societies, 73-84; first important movement, the union stores, 13-20; Fin- nish workingmen excel others in federation, 45; geographical Hmitations, 175; idealism of the co- operative Franco-Beige, 38; immigrant associations, 28- 47; influence of the immi- grant and foreign co-opera- tive methods and ideals, 29; interpretation and prospect, 175-185; manufacture, co- operative, 48-57; move- ment in America compared with that in Europe, 58, 59, 183; movement less ad- vanced than the farmers', 176; needs and trend of the movement, 58-84; new types of society now ap- pearing, 45; racial lines, co- operation on, desirable, 34 ; railway employes, 45, 46 ; second co-operative move- ment, the Sovereigns of In- dustry, 21-27; statistics of New England associa- tions, 61-64; survivals of early movements, 13-27; union of employes of like trades, 45. See also Manii- faclure; Sovereigns of Indus- try; Stores; and names of associations Industrial Methods: results of revolution in, 3, 13 Industrial Workers oe the World, 39, 47 Insurance Societies: mutual, vi Interest Rates: creameries, 148; stores, 8, 63 International Co-operative Alliance, 9, 74, 83 International Socialist Con- gress in Copenhagen, 19 10, 47 Ireland: co-operation in, 12 Irish Immigrant, 29 Isolation: rural, 87 Italian Co-operative Market, Lynn, Mass., 40 Italian Immigrants: associa- tions of, 39-41; co-operative union, 82, 83; journal pub- lished, 40; peach growers' association, 123 230 INDEX Italy: status of co-operation, lo Je-vaish Farmers, 123 Joint-Stock Co-opeeati\'e Companies: creameries, 134, 143-163; evolution of work- ingmen's, 19, 50, 53-56, 61, 67; Massachusetts, 20, 21; transition to Rochdale meth- ods, 27 KaLEVA Co-pPERATrVE ASSOCIA- TION, Maynard, Mass., 43, 45, 64 Kennebec Patrons' Co-opera- tive Association, Augusta, Me., 103 Kennebec Valley Cow-test- ing Association, Winthrop, Me., 172 Kennebec Valley Fruit Growers' Association, Waterville, Me., 123 Knights of Labor: co-opera- tive stores, 27, 77; urged co-operative production, 49, SI Labor Struggle, Lawrence, Mass: assistance given by the Co-operative Franco- Beige, 39 La Cooperazione, 40 Laws: relative to co-operative corporations, 74; in Con- necticut and Massachusetts, 60, 61, 189-192 Lebanon Creamery Company, 144, 164 Lisbon Falls Co-operative Association, Lisbon Falls, Me., 30, 6s Lithuanian Co-operative As- sociation, Cambridge, Mass., 68 Lithuanian Immigrants : as- sociations, 41, 42; socialist papers, 42 Lowell Co-operative Asso- ciation, Lowell, Mass., 24, 26, 62, 63 Loyalty: necessity of, 67, 68, 71, 160 Lyme Creamery Company, L3aiie, N. H., 144 Maine: grange stores in igii, 103 Maine State Grange: objects, 93, 94; membership, 93; state exchange, 108 Management op Co-operative Associations: errors in, 66-71 Manufacture, Farmers' Co- operative: 133, 164 Manufacture, Workingmen's Co-operative : aims and objects of societies, 48; be- gun by Co-operative Whole- sale Society in England in 1873, g; co-operative fea- tures sacrificed to the joint- stock system, 49, 50, 53-57; difficulties of independent co-operative manufacture, 75; factory associations, con- sumers', 54; factory asso- ciations, workers', 49-53; first association in New England, 49; Knights of 231 INDEX Labor movement, 49, 51; many ventures, 1867-1887, 49, 50; obstacles to workers' co-operative factories, 55- 57; ownership of mills and factories by federated as- sociations of consumers, 76; reward in proportion to wages, 56 Maple Sugar Makers: co- operative sales associations, 117 ilARioiT Gardeners, 116 Massachusetts Co-operative Association, South Quincy, Mass., 65 Massachusetts Laws: for in- corporation of co-operative associations, 60, 61, 192 Massachusetts State Grange: initiated movement of cen- traHzed co-operation, 105, 106; membership, 93 Masses Publishing Company, 83 Membership in Co-operative Associations, 7, 32, 33, 53, 56, 62, 145-147. See also their names Middlesex Co-operative Gar- den Company, Hudson, Mass., 126 Middlesex North Pomona Grange, 95, 98, 105 MiLFORD Farm Produce Com- pany, Milford, N. H., 169 Milk, Regulation oe Sale AND Distribution, 165-170; city contractor, power of, over the farmer, 167, 168, 170; decline in milk pro- duction, 159; distributing stations within cities, possi- bilities, 167-170; prices, 166, 167, i6g; safeguarding of farmers' interests, 165, 166; shipment of milk to large cities, 161, 168; strike of milk producers, 166 Moralized Trade. See Ethical Purpose of Co-operation Morgan Memorial Co-opera- tive Industries, Boston, xviii, 55 Morristown Cow-testing As- sociation, Morristown, Vt., 172 Mutual Benefit Co-opera- tive Company, 46 Myeick, Herbert, 157, 163 Nashua Co-operative Foundry Company, 50 Natick Protective Union, Natick, Mass., 18 New Arlington Co-operative Association, 70 New England Association of Farmers, Mechanics, and other Workingmen, 14 New England Co-operative Associations : differ from Rochdale practice, 10, 18, 19. 20, 27, 35, 46, 63, 77, 79 New England Cranberry Sales' Company, 124-125; by-laws, 207 New England Fruit Growers' Association, 123 New England Homestead, ix, 120, 157 232 INDEX New England Protective Pascoag United Co-operative Union, 15, 77 New Hampshire Potato Growers' Association, 118 New Hampshire State Grange: efforts for co- operation, 109; member- ship, 93 North Dighton Co-operative Association, North Digh- ton, Mass., 31 North Dighton Co-operative Stove Company, Taunton, Mass., so, SI North Montpelier Co-opera- tive Creamery Company, Vermont, 149 North Orange Co-operative Creamery Association, North Orange, Mass., 163 Noyesville Co-operative Creamery Association, Walden, Vt., 156 Onions: co-operative sale, 120 Orwell Cheese Factory As- sociation, Orwell, Vt., 164 Owen, Robert: prophet of co- operation, consumers' clubs in Great Britain, 1820-1840, 6,48 OxEORD Bears Fruit Growers' Association, Buckfield and Hebron, Me., 123 Oxford County Fruit Grow- ers' Association, West Paris, Me., 123 Palmer Co-operative Asso- ciation, 46 Association, Burrillville, R- I-i 30, 31 Patrons' Co-operative Asso- ciation OF Massachu- setts, 106, 107, no. III Patrons' Co-operative Cor- poration, Portland, Maine, 64, 95, 108, 129 Patrons' Exchange of Con- necticut, 108, 110,128 Patrons of Husbandry. See Grange Peach Growers: sales asso- ciation, 123 Peabody, Francis G., 78 Peck, Bradford: and the Co- operative Association of America, 79, 80 Penobscot Pomona Grange Store, Bangor, Me., 103 People's Co-operative Store, Orange, Mass., 36, 6s People's Palaces of Belgian Cities, 181 Peterboro Creamery Com- pany, Peterboro, N. H., 147 Pittsfield Co- operative Store, 65 Plainfield Co-operative Creamery, Plainfield, Vt., 143, 153, 158 Plymouth Rock Co-operative Company, Plymouth, Mass., 20, 63, 6s Polish Immigrant Associa- tions, stores, 41, farmers, iSS 233 INDEX Political Method: voluntary co-operation the substitute for, 183; wrecks early Grange, 94; wrecks Knights of Labor, 27, 78 POMOLOGICAL SOCIETIES, 121- 122 Population, New England, 88 Portsmouth Grange, Middle- town, R. I.: purchasing club, loo Potatoes: co-operative sale, ii8, 128 Poultry: co-operative sale, 127 Printing Industry, 49, 55 Produce, Co-operative Sale, 112-131: advocated by specialists in agricultural industries, 127; aspects of co-operative selling, 112, 113; cranberry gro wers , 1 2 4 ; flower growers, 114; fruit growers, 1 21; grange stores, 127; maple sugar makers, 117; number of sales asso- ciations is small, 113; po- tato growers, 118; socialist community, Westwood, Mass., 128; tobacco growers, 120; wholesale exchanges of state granges, 128 Producers' and Consumers' Exchange, Brunswick, Me., 108, 119, 129; organization, 130; methods, 129, 130, 184 Producers' and Consumers' movement, 184 Production: co-operation in. See Maniifaclure; Creamer- ies; Cheese Factories Propit Distribution, 8, 63; to labor, 56 Prospect Union, 78 Protective Union Company, Worcester, Mass., 18 Purchasing Clues, workers', 13, 14; farmers': business meth- ods, 90, 99: disruption, causes, 100; in Europe, 11; method of obtaining reduc- tion in cost, 92; practice of, 99-103 Racial Groups : co-operation by desirable, 34 Raifeeisen Bank; a type of rural society, 11 Railway Employes: co-opera- tive societies, 45, 46 Rand School oe Social Sci- ence, 82 Real Estate: owned by work- ingmen's associations, 62 ; by creameries, 148 Reserve Funds, 60, 148 Retail and Wholesale Ex- changes, 127 Rhode Islant) Co-operative Milk Producers' Associ- ation, 168 Rhode Island Granges: co- operate with Connecticut exchange, no Rhode Island State Grange: membership, 93; trade dis- count system, 95, 96 Rhodes, James, 78 Riverside Co-operative As- sociation, Maynard, Mass., 24, 25, 63; by-laws, 193 Rochdale Movement: asso- 234 INDEX ciations of English immi- grants, 29; business prin- ciples and program, 7-9; Co-operative Union formed in 1869, 9; England, in 1844, 6-10; largest society in New England, 6g; meth- ods in New England, 20, 22, 24, 27, 35, 42, 65, 69, 78, 82 RuKAL Associations. See A gri- culiural Co-operation; Asso- ciations of Fanners; Cream- eries; Grange; Supply Asso- ciations and their names. Rural Problems, 87, 112, 153, 154, iS7-i63> i6S> 168, 170, 179 Sabbatus Co-operative As- sociation, 30, 63, 65 Sales Associations, 114-131 Sampson Co-operative Cream- ery, Grand Isle, Vt., 143, 158 Saneord Co-operative Asso- ciation, Sanford, Me., 33, 63 Scandla Co-operative Gro- cery Company, Fitchburg, Mass., 36, 6s Scandinavian Co-operative Grocery Union, Worcester, Mass., 36 Scottish Wholesale Society OF Glasgow, 76 Shareholder Employes, 64 Sheffield Co-operative Creamery, Sheffield, Vt., 155 Shoemaking, 49, 50, 52 SiMSBURY Dairy Company, Simsbury, Conn., 147 Size of New England: com- pared with other states, 88 Skowhegan Co-operative As- sociation, Skowhegan, Me., 30,33 Social Centers: co-operative, in Europe, 181 Social Conditions of America : handicap the co-operative movement, 176-178 Socialism, Political: educa- tion for, 184; rapid spread, 183 Socialist Associations: Bel- gian, 10,37-39; co-operative union, 82; in Europe, 10; influence of the Masses Pub- lishing Company, 83; spirit of co-operation, 72; whole- sale purchase, 83 Socialist Stores, 45, 47 Socialists: Christian, in Eng- land, 49; Finnish, 44; Ital- ian, of Barre, Vt., 40, 41, 82, 83; Lithuanians, 42 South Peacham Creamery Company, South Peacham, Vt., 158 Sovereigns of Industry: busi- ness methods, 22; failure in 1879, 22; formed in 1874, 21; surviving stores, 23-27; wholesale center, 77 Sovereigns Trading Company, New Britain, Conn., 23, 62 State Colleges, 126, 172, 179 State Departments of Agri- culture, ix, 119, 178 235 INDEX Statistics: of creameries, 147- i4q; of stores, 61-65 Stores, Co-operative: busi- ness principles of Rochdale Society, 7-9; cash basis of the Greystone Association, 32; college stores, 27; com- mission sales system, 31; compared with those of petty retailers, 59; credit given, 64; failures and their causes, 64-71, 176; farmers', 89, 95, 101-103; federation, 73-84, 103-111; Great De- partment Store at Lewiston, 80, 81; immigrants', 28-45; Knights of Labor, 27, 77; non-English speaking im- migrants, 34-45; railway employes, 46; Rochdale as- sociations of English immi- grants, 29-34; Rochdale principles, 7-9; socialist, 45-47; Sovereigns of In- dustry, 21-27; spirit of co- operation, 72; Swedes and Germans, the earhest immi- grants to found successful stores, 34; trade discount, oldest society to retain system, 26; union stores, 13-20; wholesale store, ad- vantages of and attempts to estabhsh, 75, 77 SuFFiELD Creamery Company, Suffield, Conn., 140, 141 Supply Associations Among Farmers: cost reductions, methods of obtaining, 92; federation among grangers, 103-111; granges and their activities, 92-1 11; methods of co-operative purchase in 1908, 95-103; types of or- ganization, 89-92. See also Purchasing Cliibs Swedish Immigrants: associ- ations of, 34, 36; business gains of the co-operative method their chief concern, 35 Swedish Mercantile Co- operative Company, Wor- cester, Mass., 36, 65 Syndicalist Stores, 39, 47 Telephone Companies, Co- operative, V Tobacco Growers : co-opera- tive sale of crops, 120 Tolerance, 8 Trade Discount System: abuses of, 97, 98; difBculties avoided in Massachusetts, 98; early practice, 95; in workingmen's societies, 26, 46, 63; least advantageous method of co-operative sup- ply, 99; method of obtain- ing discount among farmers, 91, 92; oldest society to retain system, 26; on com- mission sales, 63; practice among farmers in 1908, 95- 103 Trade Union, 49 Tradesmen: opposition of, 55, 59 Tunxjs Co-operative Cream- ery, Robertsville, Conn., 143, 156, 164 Turner Centre Dairying As- sociation, Auburn, Me., 145, 149-151, 158, 162 Turner Co-operative Fruit Growers' Association, Turner, Me., 122 236 INDEX Urban Co-operation, and rural contrasted, s, 6, ii, 133, 175-185. See also Indus- trial Co-operation Union, .Co-operative. Federation See Union Stores, 13-20: evolu- tion into joint-stock com- panies, 20; failure of system in 1857, 16, 20; methods of co-operation, 15, r8-2o; sur- viving stores, 16, 18, 20 Vermont Law: on voting in corporations, 61 Vermont Maple Sugar Mak- ers' Association, 117 Vermont Maple Sugar Mak- ers' Market, 117 Vermont, milk supply, 162- 163 Vermont State Grange: buy- ing agent, 108; member- ship, 93 Vernon Creamery Company, RockviUe, Conn., 144, 147, 160, 164 Voting in Co-operative Asso- ciations, 5, 7, 61, 138, 143, 144, 147 Wage of Workingmen, 62 Wapping Creamery Company, 147, 164 Wastes op Competition, 183 Waterhouse, Charles H., 136 Watertown Grange of Con- necticut, 98 West Lynn Lithuanian Co- operative Market, West Lynn, Mass., 42 West Milton Creamery Com- pany, West Milton, Vt., 140, 156 West Newbury Co-operative Creamery, 163 Wholesale Store: advantages, 75; attempts to establish, 77, 82, 83; Finnish, 45, 82 Winooski Valley Creamery Association, Waterbury, Vt., 161 Worcester County Milk Pro- ducers' Association, 167 Workers' Co-operative Com- pany, Gardner, Mass., 43 Workingmen's Movement. See Industrial Co-operation; As- sociations of Workingtnen Workingmen's Protective Union, 14; change of name, IS Workshops: co-operative. See Manufacture 237 THE SURVEY A JOURNAL OF CONSTRUCTIVE PHILANTHROPY THE SURVEY is a weekly magazine for all those who believe that progress in this country hinges on social service: that legislation, city government, the care of the unfortunate, the cure of the sick, the edu- cation of children, the work of men and the homes of women, must pass muster in their relation to the com- mon welfare. Ai Critic, The Survey examines conditions of life and labor, and points where they fail: how long hours, low pay. insanitary housing, disease, intemperance, in- discriminate charity, and lack of recreation, break down character and eiTiciency. As Student, The Survey examines immigration, in- dustry, congestion, unemployment, to furnish a solid basis of fact for intelligent and permanent betterment. 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FRANKEL, Ph.D. Assistant Secretary and Manager Industrial Depart- ment, Metropolitan Life Insurance Company And MILES M. DAWSON Attorney at Law and Consulting Actuary With the co-operation of LOUIS L DUBLIN, Ph.D. Lecturer in Actuarial Science, New York University The book is invaltjabic to all sttidents of insurance and of the related problems of work -accidents and diseases, old age pensions and the like. The questions discussed are among the most interesting and important now before the American public. Seven states are considering legislation on employers' liability and workmen's compensation. Through tliis study the Russell Sage Foundation has made available for students, legislators and business men, the full experience of the countries in which these forms of social insurance have been tried out, authoritatively treated by men of ample experience and sound judgment. Part I. Insurance against Accidents. Part 11. Insurance against Sickness and Death. Part III. Invalidity and Old Age Insurance. Part IV. Unemployment Insurance. Part V. Complete Insurance Systems. SECOND EDITION Large 8vo; 480 Pages; 145 Tables; Bibliography. Price $2.50; By Mail, $2.70 SURVEY ASSOCIATES, Inc. Formerly Charities Publication Committee PUBLISHJERS FOR THE RUSSELL SAGE FOUNDATION 105 East 22d Street, New York RUSSELL SAGE FOUNDATION PUBLICATIONS THE PITTSBURGH SURVEY The findings of the Pittsburgh Survey in six volumes are in course of publication, under the edi- torial direction of Paul U. Kellogg, Director of the Pittsburgh Survey. Four volumes are now ready : THE STEEL WORKERS By JOHN A. FITCH Expert, New York State Department of Labor, 1909-10 A study of the men who make steel by one who lived among them. 8vo, 350 pages; 39 full-page illustrations by n.:.„ Pnctnaiil t1 Ti Lewis W. Hine, Joseph Stella and others. rflCe, rOSipdia, $1./ J HOMESTEAD: THE HOUSEHOLDS OF A MILL TOWN By MARGARET F. BYINGTON Assistant Secretary Charity Organization Department Russell Sage Foundation A clearly drawn picture of the home and community life of the steel worliers. 8vo, 3 10 pages; 41 full-page illustrations by n.;.. Pndnaiil 417(1 Lewis W. Hine, Joseph Stella and others, f flCe, rOSipdlQ, Jll./U WORK-ACCIDENTS AND THE LAW By CRYSTAL EASTMAN Attorney-at-Law; Secretary New York State Industrial Accident Commission 1909-10 During the year studied, five hundred industrial wage- earners were Icilled at their worlc in Allegheny County, Pa. The story of their hazards is compelling. 8vo, 350 pages; 38 full-page illustrations by n; Pndnaiil 117') Lewis W. Hine, Joseph Stella and others. mICC, rOSipdlO, t\.li, WOMEN AND THE TRADES By ELIZABETH BEARDSLEY BUTLER Former Secretary Consumers' League of New Jersey The first general survey of the occupations open to wage- earning women in an American city. Second Edition. 8vo, 440 pages; 40 full- n •„„ n«„t„..;j &* ni page illustrations by Lewis W. Hine. mICC, rOSipaid, fl.li The entire set of the Pittsburgh Survey volumes, to be issued at $1.50 net each ($10 per set, postpaid), will be as follows: Thh Pittsburgh District— Symposium by John R. Com- mons, Florence Kelley, Robert A. Woods, Peter Roberts, Charles Mulford Robinson and others. The Steel Workers— John A. Fitch. Homestead: The Households of a IVIill TovifN — IVlargaret F. Byington. Women and the Trades — Elizabeth Beardsley Butler. Work-Accidents and the Law — Crystal Eastman. Pittsburgh ; The Gist of the Survey— Paul U. Kellogg. SURVEY ASSOCIATES, Inc. Formerly Charities Publication Committee PUBLISHERS FOR THE RUSSELL SAGE FOUNDATION 105 East 22d Street, New York