&% OPERATION L....... THE LITHUANIANS IN THE UNITED STATES OF AMERICA GH DISSERTATION Submitted to the Faculty of Philosophy of the Catholic University of America in Partial Fulfillment of the Requirements for the Doctorate of Philosophy. Li By FABIAN S. KEMESIS Catholic University of America Washington, D. C. 1924 . AMONG THE LITHUANIANS IN THE UNITED STATES OF AMERICA GH DISSERTATION Submitted to the Faculty of Philosophy of the Catholic University of America in Partial Fulfillment of the Requirements for the Doctorate of Philosophy. Li By FABIAN S. KEMESIS Catholic University of America Washington, D. C. 1924 COOPERATION AMONG THE LITHUANIANS IN THE UNITED STATES OF AMERICA 5 DISSERTATION Submitted to the Faculty of Philosophy of the Catholic University of America in Partial Fulfillment of the Requirements for the Doctorate of Philosophy. By FABIAN S. KEMESIS Catholic University of America Washington, D. C. 1924 HD 24460 =b MAIN In compliance with current copyright law, U. C. Library Bindery produced this volume on paper that meets ANSI Standard Z39.48-1992 to replace the deteriorated, damaged, or lost original. 2013 CONTENTS Page TOREWORD ae a 5 CHAPTER I1— RACIAL BACKGROUND. ~~ © = ____ 7 A Pew Historical Facts... —.---~—~—-—--c C=C 7 The Causes of Emigration. 4 o_o. 9 Lithuanian Immigration to the United States____________ 10 Certain. Chavacleristies. oo oo Cl We 13 Cooperative Movement in Lithuania __________.________ 14 CHAPTER II.—THE BEGINNING OF THE MOVEMENT IN THE UNITED. STATES nn 17 CHAPTER III.—_CONSUMERS’ COOPERATIVE MOVEMENT___ 19 Definition and Classification of Cooperation _____________ 19 The Motives and Aims of the Organizers of the First Stores. 21 Personal Charvacteristies. . _. 2 _*_ 23 The Movement in Massachusetts... ______ = 2 ~~ __ 24 The Time of Establishment of Thirty-two Societies and of Failure of Sixteen Societies... ___ = 25 Cooperative Bducation Meetings _--____"_ _ © _ ________._ 26 VollAg weve a Smad CO aL a 26 Intevest on Share: Capital... ooo o_o 0 ori 27 Purchase Dividends... in cnn el 28 The Importance of Competent Leadership ______________ 28 Granting of Credit... CC Ts 29 Employees and Their Salavies. _________- © _ __ _ _____._. 30 Comparative Table of Membership, Shares, Interest, Divi- dends, Turnover, and Surplus of Lithuanian and American Societies: oo a 31 Assets and Liabilities_____ fm et mn i Sh SC 31 ACCOR. na EE Re El 32 Relations with the Amevicon People. ___~__- ~~~ : 32 The Concluslond... .oeemaen di a un Ll i 33 CHAPTER IV.—DIFFICULTIES. CAUSES OF FAILURE______ 85 Answers from Varlong Classes... __ o_o __ 35 Tatellectual Defleleneles ooo o-oo 35 Political Differences... i 36 Chovocter Deficiencies... Lo J... 37 Outside Difficuliles.. ... ob 38 Conges of Ballure. od a 44 CHAPTER V— INSURANCE COOPERATION __________.______ 45 Wield of Invesiigallon. ol 45 Motives of Organizers. oo rs 46 Character of the Societies... ._ ____ __ .n 47 Insurance Societies... a 49 Binanelol Satus. ico Ce a 51 Cultural Achievements... = oY aaah El 52 [3] E aan CONTENTS—Continued Page Anoloomotion of Seeleties =... aie 52 Lithuanian B. C: Alliance of Ameren... vee nnn 53 Lithuanian National Allianee of America... oven 54 Lithuonlom BR. ©. Woman Alliawee. 55 ConCIuSIONS) «= cobain iim Sai os lS Sid dri iihsrmss bm wht 4 55 CHAPTER VI.—.OTHER FORMS OF THE MOVEMENT—AT- TEMPTS. TO. UNIFPY. IT. .iicen so 300 0B G00 Dh 57 Building and Loan Asgeeciationsi 0 00. 57 "The Aim and Character of Organization... .. .fcccaena... 57 The Besullg oon vmnes sion on L SID SRE) IHR SE, 58 The .Opinion ‘of an American. L... LL ulol Bo 0d 0 00... 60 Cooperative Halls... cooow ona mane niin coe soci Loe bogs 62 Cooperative Produetion. oli. o.oo... ouou sme. oom 63 Attempt to Unify the Movement... ... .. 5; 65 CHAPTER VIIL.—-GENERAL CHARACTERISTICS OF THE MOVEMENT cu Le ni ne del erst fain so En on 67 Rich Endowment and the Factors of Destruction _______ 67 Helplegsness in Pace of Advergity. . . _ eo... _ ze con. 69 PactioNIMSIN ois oi 0m od ah Ye AE ero i i in 70 Total Abandonment by Intellectuals. aed bi dion. nn 70 Difficulty in Developing Cooperative Education__________ 74 The New Generation... cee mmm mew me S50 am ww 71 CHAPTER VIII.—COOPERATION AND CITIZENSHIP... ... 73 Pwo Kindgrof Cltiveng ose nve a asc par desi 1, OR ile 73 American Vdeglzrar il Sr oe LA 74 Incentives lgad nn ie 0 ne ena ae 75 Crurchose oe somites iio po Sean aides Jn BS 78 Hope of Demoeracy ol ea hema ri mm mie 79 Enlichtened Veojeen 0 0 0 ae . 81 [4] Foreword The study of immigrant groups is of importance for the in- telligent appreciation of their influence and relative position in American life. But if vague generalities are to be avoided, investigation must be confined to some particular phase and group. Hence, the present treatment aims at acquainting the American reader with the cooperative activities of Lithuanian immigrants. Lithuanians in the United States are by no means con- spicuous. In numbers they exceed a half a million. Excep- tional abilities, great accomplishments or deeds are hardly the rule among them. Even in the cooperative field their achieve- ments, unlike those of their northern neighbors of Finland, could not with justice be termed remarkable. Their general place in the cooperative movement is, how- ever, typical. As a nation, Lithuania need not take a low rank. Her past has been moderately glorious, marked by a saneness of tradition, but checked by religious, political and economic oppression from which she has but recently emerged. But her citizens have never been below average ability. In the field of economic cooperation, peculiar handi- caps have been added to those that usually encounter all who work in this movement. The equipment for such activity was limited. Unassisted by outsiders, even the Intellectuals, they obviously could achieve only moderate results. The author’s desire has been to collect for his survey all available material. However, his success has been limited. Every store, of the twenty-three known to him, located in seven different States, could not be visited. Even the man- agers and presidents of those visited sometimes lacked reliable information and statistical data. Correspondence was re- sorted to, but this likewise proved unsatisfactory. Hence, the author was by force of circumstances obliged to confine himself to a very moderate task. It is his hope to present in the following pages a few pen pictures from real American life, which best illustrate cooperative activities among Lithuanian immigrants. A special effort has been made to do this work as accurately as possible, and use none 17L the number of children born to immigrant parents be included, the estimate would be at least seven hundred thousand. [5] but the true colors of real life. These glimpses will reveal the story of the struggle of plain toiling people in an attempt to better their conditions of life. The path to their social ideal has been rugged and steep, at times blocked by great obstacles, but never left untrodden. The historical past of the Lithuanian people and their first steps in the cooperative movement in Lithuania and in this country provide the natural background for these pictures; the statistical data and the various phases, concerning which it has been possible to gather data, provide the details. Special attention and emphasis will be put on the reasons of the failure of many such societies. An attempt to glance into the vista of the future will also be made, based on the hopes and plans of those engaged in the movement. The author wishes to take this opportunity of thanking the Reverend Doctor John A. Ryan for his guidance and advice, and the Reverend Doctor William J. Kerby for his encourage- ment in this task. His thanks are in no small measure due to those Lithuanian idealists who assisted him. Finally, it may be mentioned that the author is of Lith- uanian origin and rearing, and has been interested in the cooperative movement among his countrymen in Europe as well as in America. [6] Cooperation Among the Lithuanians in the United States CHAPTER 1 Racial Background A Few Historical Facts The Lithuanians, a distinct branch of the Indo-European race, have from time immemorial inhabited the regions drained by the basin of the river Nemunas or Niemen and the shores of Kurish-Haff. This constitutes “Lithuania propria.” There are also two other related branches of the nation: the Prussians, subjugated by the Teutonic Knights at the be- ginning of the thirteenth century, who finally became Teuton- ized or extinct in the sixteenth century, and the Letts, who after the World War formed their own State, Latvia. The curtain of Lithuania’s history, in the proper sense of the term, rises with the dawn of the thirteenth century. The centralizing force was pressure by the Teutons or Prussians and the Slavs: Russians and Poles. The entire Lithuanian race then united to form one nation, under the leadership of the first Grand Duke of Lithuania, Ringaudas (1230-1238). His son, Mindangas (1238-1263), realized that there was only one way to preserve the integrity and independence of his nation. The great menace was the continuous onslaught of the Teutonic Knights, who seeking to christianize them often resorted to fire and sword. This purpose naturally rallied to their standard all the knighthood of Western Europe. The acceptance of Christianity appeared to provide the best means of successfully coping with this situation. Mindangas was accordingly baptized in 1252 and was immediately proclaimed King of Lithuania by Pope Innocent IV. But the attacks of the Teutonic Knights continued, in consequence of which the king recanted and took up arms against the aggressors. Under her subsequent rulers, Gediminas, Algirdas, Keistutis, and Vytautas, wars with neighboring groups, especially the Teutons, continued more or less successfully until the end of the fourteenth century. Then, Lithuania was one of the great- est States of Europe, stretching from the Baltic to the Black [7] 3 RACIAL BACKGROUND Sea. In 1386, the nation officially and voluntarily embraced Christianity. 3 After these bellicose beginnings, with the acceptance of Christianity began a period of cultural and political develop- ment. Both of these spheres are marked by Polish influence. Many unsuccessful attempts were made by the Poles to achieve a political union of the two nations, for example, the solemn staging of political union in Lublin in 1569. In the social and cultured realms, the Polish influence is manifest especially upon the Lithuanian nobility; this affected the increase of class privileges, the period of decadence, and the final loss of independence in 1795, together with Poland. The major part of Lithuania remained under the yoke of Russia until 1915, when it was occupied by the Germans. Finally on February 16, 1918, the country proclaimed its independence. The long wars of the thirteenth, fourteenth, and fifteenth centuries taught Lithuania the necessity of national unity. . Previous to contact with the “civilized” nations of Western Europe, no noteworthy social difference existed in their midst. As in the case of many primitive peoples, Lithuania had neither slavery nor serfdom. The only privileged groups were her military and religious leaders. Contact with civilization multiplied distinctions, which brought in their train a diminu- tion and partial disintegration of the spirit of national sol- idarity. But in spite of four centuries of demoralizing serf- dom, and a nobility, which was the prey of Polish influences, the Lithuanian serfs preserved their national language, cus- toms, and traditions. Throughout this period amid the gloom have consistently shone the basic natural virtues: love for justice, and a longing for the reign of brotherly love.: ! The present territory inhabited by people speaking the Lithuanian language comprises over thirty thousand square miles, and a population in 1914 of four million, three hundred forty-five thousand. (ef. “Lithuania Past and Present,” E. J. Harrison, p. 20.) This area is claimed by the Lithuanian nation and government. However, owing to the vicissitudes of the post-war ‘‘peace,”” and the Polish military occupation of Eastern Lithuania (Vilna region), Lithuania at present covers only twenty-two thousand, five hundred square miles, and numbers two million, one hundred seventy thousand inhabitants. This includes also the Memel region. (ef. L. D. K. S. 1924 Kalendorius, p. 53.) The official census made by the Lithuanian Government in 1923, places the total number of Lithuanians, not including the Memel region, living in the territory con- trolled by the Lithuanian government, at two million, eleven thousand, one hundred seventy-three, composed of nine hundred sixty-two thousand, seven hundred sixty- five men and one million, forty-eight thousand, four hundred eight women. Of these, eighty-four and thirty-four hundredths per cent use the Lithuanian language, and fifteen and sixty-six hundredths per cent other languages. In addition, there are supposed to be over one hundred fifty thousand Lithuanians in the Memel region and about one million, seven hundred seventy-seven thousand, five hundred in the Vilna region. This, then, makes the total number of inhabitants of ethno- graphic Lithuania over four million. RACIAL BACKGROUND 9 The Causes of Emigration The abolition of serfdom by the Czar, Alexander I (1861), introduced a brighter period in the history of the Lithuanian nation, but it did not provide for economic welfare or political freedom. Further, more than half of the liberated serfs did not obtain any land.? Soon, however, new oppression fol- lowed in the wake of the Polish uprising of 1863, which re- ceived hearty support from the Lithuanian polonized nobility. The former serfs reaped the whirlwind. The Russian govern- ment, with a view to the more complete “Russification” of the Lithuanian people, forbade the printing of books and period- icals in Latin type in 1864, which had been in use since the six- teenth century. It strongly recommended, and tried to intro- duce by means of the schools, the Russian type. Finally, the teaching of the Lithuanian language was strictly forbidden in the schools. These measures were enforced with a truly Draconian zeal. The possession of a Lithuanian prayerbook or calendar was deemed sufficient cause for imprisonment or deportation to Siberia, solely on the judgment of the adminis- tration and without any court proceeding. Bitter religious persecution accompanied political and na- tional suppression. Many Catholic churches were taken by force, converted to the use of the orthodox rite; priests were fined or deported for fulfilling their religious duties; monas- teries were closed; the faithful were induced to change their religion. - A final misfortune came from the hand of Providence in 1867 and 1868; a famine followed in the wake of the con- tinuous rain of 1867 and the drought in 1868. These, then, together with the desire to escape military duty,® are the main reasons why emigration from Lithuania had already started in 1867 and 1868.4 2 Fr. Zilius, “Lietuviai Amerikoj,” p. 7. Plymouth, FPa., 1899. 8 Numerous other reasons could be adduced in explanation of Lithuanian emi- gration ; economic stagnation, due to the absence of industry in the country, which was in the bands of the Jews; the custom of parcelling out land among the children, ete. Emigration started from Lithuania some twelve or thirteen years earlier, due to the famine, than from Austrian Galicia and Slavonia. The density of population was not the reason of the emigration. At that time, Lithuania had eighty-six persons to the square mile, whereas in 1897 Germany had one hundred forty-three, Great Britain three hundred eleven, Holland three hundred fifty-nine, Galicia one hundred forty-one, and Slavonia one hundred thirty persons to the square mile. Cf. Fr. Zilius, op. cit., pp. 5-11. +In the work of Fr. Zilius, already cited, there is a description of the second centennial celebration in 1888 by the Lithuanians of Shenandoah, Pa., in honor of the first Lithuanians who came to New York, then New Amsterdam, in 1688. The story runs as follows: In the seventeenth century, many Lithuanians fled to Latvia to escape the economic oppression of the landlords. James, Duke of 10 RACIAL BACKGROUND Lithuanian emigration took different courses; about three hundred thousand went to Russia, Poland, and Latvia; others to Germany, Scotland, England, South Africa; but the great- est number came to the United States of America. Lithuanian Immigration to the United States In 1867, a large number of Lithuanian immigrants arrived in New York, some of whom settled on New England farms, while many entered into the employment of the builders of the new railroad lines in Pennsylvania. Soon groups of Lithuanians were to be found in the anthra- cite region in Pennsylvania. In 1868, four Lithuanians settled in Shamokin, Pa. They were soon followed by many others. After three years (in 1871), sixty Lithuanians and forty Poles founded a parish in that town. In 1879, Mikas Tvarauskas established there the first American Lithuanian printing shop and published the first Lithuanian newspapers, “Lietuwizka Gazieta.” Twelve or fourteen issues of this paper appeared, but its publication ceased with the destruction of the shop by fire. In 1871 and 1872, Danville, Pa., had the largest Lithuanian group in the United States, numbering about two hundred men. In a short time, the Lithuanians be- came prominent in numbers throughout the entire anthracite region, especially in Schuylkill, Luzerne and Lackawanna counties and in all towns of the Wyoming Valley. Soon, how- ever, they began to spread to several other States. The first Lithuanians came to New York, Chicago, and Cleveland in 1870; to Boston, Waterbury, and Pittsburgh in 1871; to Scranton in 1878; to Baltimore in 1881¢ and to St. Louis in 1886.7 Courland, bought the island of Guadalupe from Spain, and transported these im- migrants. The English captured the island and after destroying it, deported its inhabitants to New York in 1688. (These facts are related in the book “Budas Senoves Lietuviu,” p. 195, by the noted Lithuanian historian, Simonas Daukantas.) In 1777, the famous Thaddeus Kosciusko came from France. He was born in Merkine, in the district of Trakai, at present under the Lithuanian government. Kosciusko always regarded himself as a Lithuanian. ® Lithuanians proved their capacity to adapt themselves to the new environment. According to data collected by Father J. Zilius, in 1898 the Lithuanians of Shenandoah, Pa., already had a church and rectory, valued at over $50,000; thirteen societies, of which eight were benefit societies; 17 grocery stores, 5 butcher shops, 59 saloons, 8 cobbler’s shops, 8 barber shops, 5 undertaking establishments, 2 printing shops, 1 blacksmith. They also had one periodical paper, “Garsas.” Most of these Lithuanian business men owned their properties, and 39 miners their houses. ¢In 1885, 57 Lithuanians established St. John the Baptist’s benefit society in Baltimore, and in 1887 they began to organize the Lithuanian parish there. "The endeavors of Lithuanian immigrants in the eighties and nineties of the last century are of considerable interest. In Chicago, the first Lithuanian societies were established in 1884, namely, St. George’s L. R. C. Benefit Society, and in 1886, St. Casimir’s Benefit Society. The revival of the national spirit in Lithuania RACIAL BACKGROUND 11 At the present time, the greater number (about 200,000) of Lithuanian immigrants are in the anthracite coal region. In general, they are distributed as follows :8 Anthracite region, of L00 pa Briann ar Ng tae 200,000 Plttshavgh digtrieh woviu cond bas Bat 0 GE Tang SIE 25,000 Philadelphia. disirich. oman. nu oo 0 0 od 20,000 Balbimore oo 10,000 New York and New Jersey States (the Atlantic Coast) ______ 40,000 Western Sectionof New York State... _____ ‘o _ _~ 6,000 Conneetient. ol i cl tli dl sisi ae af = 25.000 Massachusetts, New Hampshire and Rhode Island__________ 40,000 Detnoitiond Michigan... 0 oo of os ws 13,000 Cleveland ond Oho... Cosa ab Ses i 13,000 Chicago and suburbs... 00 asi JOS NTS 90,000 Wisconmin 220 ov wants sini tommy nel damien 0 0 4 brigiys oh 9,000 To the South and West of Chicago: Illinois, Indiana, Kansas, Iowa, West Virginia, Oklahoma, Louisiana, and California. 20,000 J. Jonas in his book, “Lithuanians in America,”? points out that in 1899, “there were 275,000 Lithuanians, belonging to some sort of organization.” In that year, a separate classi- fication was instituted by the American government, accord- ing to which from 1899 to 1914, 252,593 Lithuanians landed in America and during the same time only 19,171 went back to Lithuania, thus making the total net influx for the fifteen years 233,423. According to this calculation the total number in 1914 was 508,423. During the succeeding years, owing to the war and subsequent restriction of immigration, com- began after 1883, when the first patriotic publication, “Ausra” appeared in Tilsit, Prussia. Previous to that time all the cultural elements in the country were staunch adherents to Polish culture. Many of the early Lithuanian immigrants called themselves Poles, some even pretending to be Russians. In many places, such as Shamokin, Mt. Carmel, Shenandoah, etc., they united with the Poles in the formation of parishes and societies. But the new spirit of freedom and independence soon brought its fruits, and Lithuanians began to realize that they were nationally completely distinct from the Poles. Soon the process of emanci- pation from the Polish influence commenced. Thus, the first battles for cultural independence were waged and won in the free lists of America. The following are the facts. In 1871, Father Strupinskas founded a Lithuanian parish in Shenandoah, Pa. This was the first Lithuanian parish in this country. Services were held in the German church, but after this priest left, the Bishop sent a Polish priest in his place. Complaints and petitions for a Lithuanian priest and sermons in this language proved ineffective. The Bishop could not see the difference between the two nationalities, probably due to Polish influence. In 1877, formal sedition was organized against the Polish priest; Lithuanian women tried by force to prevent the entrance of the priest into the church. The police were called, and as a result the Lithuanians were beaten by both the guardians of the law and the courts. A few years of forced union with the Poles followed, during which time several attempts were made at separation and the formation of a Lithuanian parish. In 1891, these efforts were crowned with success; in 1892, the Lithuanians of Shamokin separated from the Poles, and established their own parish. The same thing happened at Mount Carmel, Plymouth, and many other places. The Lithuanians preferred to abandon churches, erected partly by their own donations, and establish new ones of their own. 8 The figures given are in all cases approximate. 9 As quoted in “Independence for the Lithuanian Nation” by S. Norus & J. Zilius, p. 23. 12 RACIAL BACKGROUND paratively few Lithuanians immigrated, probably not more than the number of those who returned to the old country. The influence of the United States upon the future destinies of the Lithuanian nation has been and still is enormous. Dur- ing the darkest period of Lithuanian history—when Russia attempted to eradicate the last vestige of the national spirit, by trying to inhibit for forty years Lithuanian literature (1864-1904) —the Lithuanian immigrants in the United States established a score of Lithuanian periodicals and published a large amount of literary material which was used profitably by themselves and was smuggled into the old country.2° In this country they established various organizations, which served as a foundation for their training in democracy, and which included civics, art, and education. They learned to enjoy political and religious freedom and did not fail to communicate to relatives, by written or spoken word, the germs of American liberty. And finally when the psycholog- ical moment arrived for the political regeneration of the coun- try, these Lithuanian immigrants did not fail to come with moral encouragement and with material help. Lithuanian immigrants in the United States have advanced fairly in different lines. The great majority of them have be- come citizens of the United States, adapting themselves to the language of the country and to its institutions.’ A major part of them have become skillful workers. Many of them have reached a certain degree of material prosperity and influence and have acquired property in favorable quarters of the cities. According to available statistics, there exist 115 parishes and a number of parochial schools.’? Their social and cultural life has reached a fairly high degree of development, embracing various kinds of organizations. The new generation born and educated here, promises to be a true interpreter of American 1 The following periodical publications had been started here. In 1879 “Lietu- wiszka Gazieta,” in 1885 ‘Lietuwiskas Balsas;’ in 1886 “Vienybe Lietuvninku,” in 1892 “Lietuva,” in 1896 “Rytas,” ‘“‘Garsas,’ “Keleivis,” in 1897 “Tevyne,” in 1899 ‘‘Viltis,” “Katalikas,” in 1901 ‘“Zvaigzde.”” Most of these papers no longer exist, but many new ones have appeared in their place. In the United States there are published now in the Lithuanian language 3 dailies, 1 three-weekly, one bi-weekly, 7 weekly papers, 5 monthly magazines. 1! As early as in 1896 there was published in Chicago a book in the Lithuanian language, “The History of the United States of America—with the Constitution and the Declaration of Independence.” It was a reprint from the weekly paper “Lietuva,” published by Mr. Olshauskas in Chicago, Ill 12 According to states, parishes are distributed as follows: New Hampshire 1; Massachusetts 10; Connecticut 6; Rhode Island 1; Maryland 1; New York 12; Pennsylvania 37; New Jersey 8; Michigan 5; Indiana 2; Ohio 4; Illinois 19; Wisconsin 5; Kansas 1; Iowa 1; Nebraska 1; West Virginia 1. RACIAL BACKGROUND 13 ideals, and it is hoped that these will be fully transmitted to their kinsmen in the land of their forefathers. Certain Characteristics The national character of Lithuanians is very well adapted for cooperative action. They are a people who love liberty and companionship, and who possess a keen sense of justice. In Lithuania, there are popularly known, and frequently used among the common people old adages, such as: “Let the devil be your slave, not a man;” “I work as I want, I hunt as I wish, Ilive as I like.” Their kindness and hospitality were well known to all their neighbors.? The magnanimity, the virtue of forgiving even their enemies, has been well known and practiced by them. The first English student of Lithuanian life, Mr. E. F. Harrison, in his book, “Lithuania Past and Present,” writes thus: “On one occasion Moscow was almost taken by Algird, who spared it only in deference to the prayers of Grand Duke Demetrius, thus unconsciously and naively revealing the boundless gulf which separates the simple barbarous mentality of that age from our own vastly superior conception of what is due to a military victor.”4 The spirit of sympathy and solidarity with fellowmen is very common among the Lithuanians. The Lithuanian his- torian, Simonas Daukantas, in his work, “Lietuvos Istorija” brings forth testimony to the universal custom in Lithuania, which was observed in the past and is still in use in the pres- ent. It manifested itself in the mutual assistance between neighbors in the field work. It is exercised spontaneously, always gratis, and, of course, reciprocally.'® 13 Helmoldus. Lic II. c¢. 18 p. 36 ‘‘homines (Lituani) multis naturalibus bonis praediti, humanissimi erga necessitatem patientes; qui etiam obviam tendunt iis, qui in mari periclitantur, vel qui a piratis infestantur ut eis subveniant.” Quoted in “Budas Senoves Letuwiu Kalnienu iv Zamaitiu”’ Jokubs Laukys Potropilie 1845 Pp. 37. 14 “Tithuania Past and Present” p. 15. Mr. Harrison, however, failed to mention the final episode of that magnanimity of Lithuanian ruler Algirdas. After de- ciding to spare Moscow, he thrust the spear into the main gate of Moscow and said to Demetrius “Do not forget, Prince, that the spear of the Lithuanian ruler has been thrust into the gate of Moscow.” Cf. “Apsakymai apie Lietuvos praeiga” Stan. Zanavykas, Tilze, 1891 p. 78; also Sim. Daukantas ‘Lietuvos Istorija” Vol. II, p. 119. / 15 “The love of neighbour was shown not in word, but in deed, and his misfortune was felt keenly by everybody; every one was prone to risk his life rather than allow his neighbour to be confined to chains or be deprived of property. At times, when the fields of the unfortunate neighbour remained untilled, when crops were yet not harvested, when hay remained ungathered, and seed not yet sown, friendly neighbours motivated by neighbourly love, combined and came to the rescue of their depressed brother.” “Lietuvos Istorija’” by Simonas Daukantas, 1850 p. 53. 14 RACIAL BACKGROUND No doubt such tender customs and sympathetic hearts have been appropriate bases for the development of the cooperative movement. This basis has been considerably weakened through centuries of serfdom, of persecution by the Russian regime, but it was not destroyed entirely. Cooperative Movement in Lithuania It required fifty-six years before the Rochdale cooperative store-system reached Lithuania. The writer, twelve years ago, had occasion to investigate the beginnings of the cooperative movement in Lithuania. According to statistics collected in 1912¢ the first cooperative society in Lithuania was organized in Pabirze in 1900 by the Catholic priest Darguzas and landowner Kamarauskas. Their example was followed in many other places, especially after the nation regained its right to publish literature in its own language (1904). In 1912 there were in Lithuania one hun- dred thirteen cooperative consumers’ societies. Data have been secured from fifty-two societies. The annual turnover of these has been one million, sixty-four thousand, four hundred twenty-nine roubles, twenty-two and one-half kop. The av- erage turnover of a society was twenty thousand four hun- dred sixty-nine r. seventy-nine k. Three societies sustained a loss; forty-eight societies realized thirty-four thousand two hundred seventeen r. twenty-four and one-half k. net profit, each averaging seven hundred twelve r. eighty-six k. The total share capital has been one hundred eighty-eight thousand, seven hundred eighty-five r. fourteen k. The total membership of these fifty-two societies was eight thousand, one hundred ninety-three, each averaging one hundred fifty-eight members. In vain, the Lithuanian cooperators endeavored to organize a Central Union of the consumers’ societies. The Russian government rejected all petitions, because it was afraid of national and political regeneration of the country. Only in 1915 during the war, was the Central Union in Siauliai or- ganized, but it was soon destroyed by the subsequent ravages of the conflict. Besides the consumers’ societies in Lithuania previous to the 16 “Lietuvos vartotoju Draugijos 1911 m.” by P. K. Vilnius 1912 m. RACIAL BACKGROUND 15 war, there existed eighty agricultural and one hundred and twelve credit societies.” After the war the movement increased with unhampered energy. On June 2, 1919, the Lithuanian Cooperative Union in Kaunas was established. During the next year the Co- operative Bank was organized. The rapid growth of the movement will be seen from the following data :'® January 1, 1923. October 1, 1923. Consumers’ societies. _____ 864 Consumers’ societies... 422 Credit aa 121. Agrviegltmral & oo. 28 Productive rT 41 Productive la ie 45 Building fey Ae. oh 2 Credit AE 126 — Jewish Credit “ " ___...._ 96 Total as in alia. Lon 528 nd Total cada sani soul v0 717 There are two Central Wholesale societies, one in Kaunas,'® and the other in Siauliai. During the first three months of 1923 Central Wholesale Society business was as follows: Sr Ld lb Ge SL 164,699 litai 70 centai® Soldi to the gsymy. iL elie ola Skiing 1,487,719 sag Soldito soclefles. op © wv © Lun na 719,437 ef otal. a a ss 2,871,849: «98 During the same three months another Central Wholesale Society in Siauliai had a turnover of 430,898.38. In 1922, C. W. S., of Kaunas, made a net profit of sixty-four thousand eight hundred and sixty-three 1. The distribution of net profit is of some interest: To Reserve Fund 250, Cc coo -c-- 15,000 1. To Operative fund 1575. nano oD JUL ent ol St 9,000 4 To Houze building Tunde oo ssid Sond Sor Jie ite rt 10,000 oe Yor the Observance of Coop. Day... __.__.__ _ _ 4,000 o For the Vibravy of University. 0 oC & —___ 2,000 “ Bonus for the workers— monthly wages______________ 12,000 5 The ‘Cooverative School... 0 i 5,000 5 General education and charity work ______._ 7,363.24 1 “The Cooperative Movement in Lithuania’ by P. Salcius in the “International Cooperative Bulletin” for July and August of 1923. 1% «Pajka” N. 21, Nov. 15, 1923. 19 The temporary capital city of Lithuania. Last year the movement was started to unite both Wholesale Societies and form one Central Wholesale Society. 20 A Lithuanian litas is equal to $0.10. 16 RACIAL BACKGROUND The Cooperative School, with a prescribed course of six months for the preparation of the managers of stores and leaders of the movement, was opened in Kaunas on August 15, 1923. The Cooperative Bank in Kaunas had, in 1923, a capital of two million five hundred thousand litai. It was very successful in its operations. CHAPTER 11 The Beginning of the Movement in the United States The pioneer of the cooperative movement among the Lithuanians in United States was Father J. Zebris, pastor of the Lithuanian Church in Waterbury, Conn., who was the foremost social worker among the people of his fatherland. He published in Waterbury a weekly paper, “Rytas.” Due to his efforts, as we read in the “Rytas,” N. 2, the Lithuanian St. Casimir’s Benefit Society of Waterbury, in 1895, opened a grocery store, and from June to January had a turnover of twelve thousand, six hundred fifty-two dollars and sixty cents, making a net profit of one thousand, one hundred twenty-six dollars and seventeen cents. Soon a shoe selling department was added with much success. The next year, 1896, Lithuan- ians of the adjacent Union City, Conn. (St. George’s Society), voted to open a cooperative grocery store. But the Poles of that city, on learning this, forestalled the Lithuanian move- ment by opening their own cooperative store and offering the Lithuanian, appointed manager, higher wages. On November 2, the Lithuanian parish bakery was opened in Waterbury. It was organized by the same Father Zebris. His motives for doing this were described by him in “Rytas.” He wished: 1, to secure for the Lithuanians that substantial rye bread to which they had been accustomed in the old coun- try; 2, to provide positions for several Lithuanians; 3, to sup- ply free bread to the poor families (every day about forty loaves were distributed free of charge to the poor, unemployed, and strikers) ; 4, if possible, to increase the parish revenue. This last end apparently was not achieved. But the enterprise proved to be very popular and accomplished a great deal of good. Soon private Lithuanian bakeries appeared and the parish had to discontinue feeding the people with this material bread. In “Rytas,” for May 20, 1897, we read about a new project to establish a cooperative farm. “Being adopted by America’— wrote the editor—“we are as other nationalities in our own country. Let us till this great land, and prove thereby, that [17] 18 BEGINNING OF MOVEMENT IN U. S. we love it, and getting profit therefrom, let us perceive how this land is good to us, and how it pays back hundredfold.” Labor Day of that year, 1897, was observed by the Lith- uanians of Waterbury on the cooperative farm. Soon in every issue of “Rytas” there appeared advertise- ments: “The aim of the Lithuanian Farm of Waterbury is to sell milk of a pure and wholesome quality. Realizing our special obligation to the children, and wishing to provide the wholesome milk for them, we have set aside for this purpose a beautiful, young and healthy cow.” Such was the spirit of good Father Zebris. In the same “Rytas” of 1897 we read that productive com- panies had been organized by the Lithuanians in Brooklyn, New York, Philadelphia, Chicago, and Baltimore. These com- panies opened tailor shops. But they were not organized on the cooperative basis. The consumers’ cooperative movement on the Rochdale basis appeared among the Lithuanian immigrants before the World War. This movement will be the subject of the next chapter. : In 1914 Father Zebris, then pastor in New Britain, Conn., was murdered by robbers. CHAPTER III Consumers’ Cooperative Movement Definition and Classification of Cooperation The present economic order, with its astounding inequalities of possessions and income; with profit as a primary motive of economic activities; with ever increasing concentration of capital; with militarism and imperialism, and destructive wars, spelling death to civilization—is a great departure from the Creator’s will, as instilled in the human hearts and con- science, and as expressed in Sacred Scripture. It is also a most unfortunate obstacle to the progress and happiness of mankind. This economic order defies the truth of universal brotherhood, of man’s dignity, of his responsibility, and of the law of labor. An ever increasing number of earnest protests against this system necessitates its early and thorough re- vision and fundamental reformation. The Cooperative movement in its various forms, as based on the Rochdale principles, is, as far as human experience is capable of judging—the best means to build up a new economic order, in which the production and distribution of goods would be adjusted according to the principles of human equality, dignity, and brotherhood, of the rights of labor and of service. It is being introduced not by force or revolution, but by peace- ful evolutionary methods, with due regard to human rights and life; it is being built not on the ruins of the old order, but side by side with it. It satisfies perfectly the Christian longing for the mutual love and justice in every day life, be- cause it adjusts economic relations according to Christ’s teach- ings, being truly Christianity applied to economics. Every nation in the world, regardless of its religion, race, or degree of culture, has a part to perform in the economic reconstruction of mankind according to the Gospel. This is why the cooperative achievements of a comparatively small group of Lithuanian cooperators in United States, unimpor- tant as they may seem at first sight, should be recorded. Various definitions of cooperation have been given by the economists and sociologists. This variety is caused apparently [19] 20 CONSUMERS’ COOPERATIVE MOVEMENT by the different viewpoints assumed by the different writers. From the viewpoint of distributive justice cooperation, accord- ing to Dr. John A. Ryan? means “that joint economic action which seeks to obtain for a relatively weak group all or part of the profits and interest which in the ordinary capitalist enterprise are taken by a smaller and different group.” The progressively minded professor of political economy would define it, after the manner of Prof. Gordon S. Watkins,? as “an organized, usually non-political, attempt on the part of an association of persons to control the production and distri- bution of commodities for the satisfaction of their numerous wants.” The life-long leader of the cooperative movement in the United States and one of the main pillars of that movement, James Peter Warbasse, defines a cooperative society as “a voluntary association in which the people organize democrat- ically to supply their needs through mutual action, in which the motive of production and distribution is service, not profit, and in which it is the aim that the performance of useful labor shall give access to the best rewards.”* According to him co- operation is “a practical working plan for a complete reor- ganization of society upon a voluntary non-political basis.”s Any Christian may add to all these definitions one of his own, and call cooperation an economic system reconstructed on the basis of Christ’s social doctrine. All these definitions are probably true. But whatever atti- tude towards cooperation we assume, whether moral, social, political, or economic, it is apparent that the cooperative move- ment is the most promising and most hopeful social movement of the 19th and 20th centuries. Cooperative societies may be classified according to their nature, task, functions, etc. The most generally accepted clas- sification divides them into (a) distributive or consumers’ societies, (b) productive associations, (c) credit cooperatives. ! The cooperative store in Rochdale was established in 1844. The Rochdale principles are: (1) one vote for each member, regardless of number of shares held, (2) capital to receive interest (if any is declared) fixed and not more than the legal rate. (38) Surplus-savings (or profits) to be used for the good of the members, for beneficent social purpose, or to be returned to the patrons in pro- portion to their patronage. Cf. ‘‘Cooperative Democracy’ by James P. Warbasse, New York,.1923, p.:22. ? “Distributive Justice” John A. Ryan, p. 215. 3 “Introduction to the Study of Labor Problems,” p. 537. ¢ “Cooperative Democracy’ p. 10. s Ibidem in Preface, p. VII. CONSUMERS’ COOPERATIVE MOVEMENT 21 To these three main divisions might be added cooperative housing, insurance, education, recreation, press, etc. To the first Lithuanian immigrants in the United States all these subdivisions of cooperation were of course unknown. Nevertheless, wherever a number of them gathered in one place, they in a very short time adopted the cooperative method. The instinct of self-preservation was the prime insti- gator; their real needs dictated the type of organization. Their first want was to organize for mutual aid in case of sickness and death. Their fondest desire was to provide better condi- tions of life for their dependents. Therefore, we see that from the first appearance of Lith- uanian colonies in the United States even to the present day there prevails the same type of mutual aid societies, providing for benefits in sickness and death. These societies will be described in one of the subsequent chapters. The Motives and Aims of the Organizers of the First Stores The first Lithuanian cooperative stores in the majority of cases were organized without any regard to broader social ideals. They were the outcome of the real needs of life, de- signed to counteract the exploitation of private grocers. The first Lithuanian cooperators lacked the vision of the Rochdale pioneers, but, even though actuated by different motives, they began practically the same work.® The scope of my investigation was very limited. I know of 23 existing Lithuanian cooperative stores and of twenty-eight extinct ones; but to my two questionnaires I received answers e “Rochdale Soclety of Equitable Pioneers” set forth the Soclety’s designs (in the Society's Almanac for 1854) in these terms: ‘The objects and plans of this Society are to form arrangements for the pecuniary benefit and the improve- ment of the social and domestic condition of its members by raising a sufficient amount of capital in shares of one pound each, to bring into operation the following plans and arrangements: The establishment of a store for the sale of provisions, clothing, ete.; the building, purchasing or erecting a number of houses, in which those members desiring to assist each other in improving their domestic and social condition, may reside. To commence the manufacture of such articles as the society may determine upon for the employment of such members as may be without employment, or who may be suffering in consequence of repeated reductions in their wages. As a further benefit and security to the members of this society, the society ghall purchase or rent an estate or estates of land which shall be cultivated by the members who may be out of employment, or whose labor may be badly remunerated. “That as soon as practicable, this society shall proceed to arrange the powers of production, distribution, education and government, or in other words to establish a self-supporting home-colony of united interests, or assist other societies in establishing such colonies. “That for the promotion of sobriety, a Temperance Hotel be opened in one of the society’s houses as soon as conyenient’.” “History of the Rochdale pioneers” by George Jacob Holyoke, London, 1900, p. 12. 22 CONSUMERS’ COOPERATIVE MOVEMENT from only thirty-two societies: sixteen existing and sixteen no longer functioning. Therefore the scientific and social value of my collected data will be only relative, depending on how much these data can be regarded as typical and indicative of a general situation, at least among the immigrant population of the United States. The majority of my correspondents are manual workers, although mostly skilled, some with a primary school education, others even without it, but all with a fair degree of intelli- gence developed by their own efforts. To the question, “What were the motives and aims of the organizers of cooperative stores?’ seventeen answers have been received; sixteen of these indicated the desire to have cheaper and better products. Four of them added: “The wish to have honest dealing,” and seven more: “to save the profit for themselves.” Prior to the war, the vast majority of Lithuanian immigrants did not possess sufficient knowledge of the English language and therefore innate shyness prevented them from going to American stores. Many Lithuanian store- keepers took advantage of that fact, especially where the com- petitors of the same nationality were absent; they were wont to exploit and cheat their customers, and the desire to avoid such exploitation was the primary reason for establishing cooperative stores. In one city it happened that all Lithuanian storekeepers were free-thinkers; they used to offend frequently the religious feelings of their Catholic customers. This impelled the Cath- olic workers to organize a cooperative store, which has existed for eleven years. The additional motives for establishing cooperative stores were, in two cases, “to learn how to conduct business;” in two more cases, ‘social and recreational purposes;” in one case, “to show capacity of self-government;” in one more, “to take control of the consumption of goods into our own hands,” in one case, “to help orphans and needy,” and finally in one—*“for the prestige of the Lithuanian Association of Labor.”? In a few cases the organizers included men with broader vision. In two localities the achievements of English co- operators were known; here the dream of establishing in the "This is the educational organization of the Lithuanian Catholic workers, with headquarters in So. Boston, Mass.,, having about 100 branches all over the United States, and about 2,000 in total membership. CONSUMERS’ COOPERATIVE MOVEMENT 23 future cooperative wholesale was cherished. One answer added, “to arrive at the wholesale trade of coal, potatoes, ete.” ; two answers read, “to build a central meat market—in the future, even a slaughter-house;” one dared even to dream of “estab- lishing factories ;” one desired “to enjoy life better and fuller.” Finally, in one case, the leading motive was ‘the conviction that cooperative business will prevail over private business.” Personal Characteristics To the inquiry, “What cooperative knowledge had the first organizers and directors of stores?” the answers were as fol- flows: in three cases, ‘the cooperative idea fairly under- stood ;” in eight cases, ‘little knowledge, if any, of coopera- tion,” and in four cases—‘‘no one understood cooperation.” Though the questionnaire did not ask precisely about the religious beliefs or affiliations of the organizers of societies, nevertheless the majority of correspondents in their answers touched that phase of the problem. And no wonder. The strife over religious questions has been very marked, almost from the beginning of Lithuanian immigration into the United States. Two factors were the main causes of the appearance in Lithuanian national life of the advocates of free thought and of spiritual and social Nihilism. They were: 1., the anti- religious tendency of secondary and higher education in the Russian schools under the Czar’s regime; and 2., the complete suppression of national education in Lithuania for over a century. Hence the emigration to America of numerous athe- istic and socialistic Lithuanian students of Russian schools. The effect of the second factor was the lack of education of the masses of Lithuanian immigrants, resulting in the sub- jugation of many of them to the influence of socialistic demagogues. Happily, the strong reaction against the influence of Rus- sian schools appeared among the Lithuanian students in Europe. This led to a strong organization of Catholic youth into the Association ‘“Ateitis’” (Future). This same reaction appeared also among the Lithuanian immigrants, owing to the influence of a new, different, and more constructive type of leaders. This change has taken place in the last ten years. 8 The Catholic clergy had to limit themselves to their spiritual duties; their numbers are inadequate; for 700,000 people there are only 155 Lithuanian priests. 24 CONSUMERS’ COOPERATIVE MOVEMENT These relations and influences affected even the cooperative movement of the Lithuanian immigrants. According to the data furnished by my correspondents from fourteen societies, five societies were organized and for a while managed by socialists and free-thinkers, four societies by Catholics and free-thinkers jointly, and four by Catholics mainly or ex- clusively. However, while the struggle between socialistic and Christian democratic ideals affected the public, and even some- times the private life of the Lithuanian immigrants, the co- operative societies proved a good school for mutual toleration, and in many places effected a spirit of harmony and coopera- tion. During the last few years a certain shifting of forces has taken place. Socialists in most places are abandoning the cooperative societies, their places being taken by Catholics. Of the sixteen existing societies, which furnished me with data, twelve are at present managed and governed by Catholics. Despite the different religious beliefs of the organizers, in ten cases they enjoyed the confidence of the vast majority of the members; while in four societies, the majority was smaller. The Movement in Massachusetts The first true consumers’ society on the Rochdale basis was organized in West Lynn, Massachusetts, in 1908. The next year their example was followed by the Lithuanians of Staun- ton, Mass., and Brighton, Mass. Almost every subsequent year saw the establishment of one or more societies in Massa- chusetts. True, some of them were shortlived; but in 1920, the Massachusetts Lithuanians had eleven consumers’ societies out of a total number of thirty-three mentioned by Miss Florence E. Parker for that State. The total number of con- sumers’ societies, organized by the Lithuanians in Massa- chusetts is fourteen. At present only eight survive. In 1915 the existing societies combined for the common purchase of various articles. Large quantities of eggs and potatoes were profitably bought and sold. The establishment of a wholesale store seemed to be the next logical step. But the loss sustained during the next year disheartened the cooperators and the ® ‘Consumers’ Cooperative Societies in the United States in 1920.” Washington, Government Frinting Office, 1923. CONSUMERS’ COOPERATIVE MOVEMENT 25 combination was dissolved, individual societies getting back their money.° The Time of Establishment of Thirty-two Societies and of Failure of Sixteen Societies The consumers’ cooperative movement grew slowly and normally until 1919 and 1920, when it began to increase more rapidly. But the subsequent years checked the movement. Two reasons apparently contributed: After the independ- ence of Lithuania had been proclaimed, many enterprising Americans of Lithuanian descent began to organize capital for trade and industry in Lithuania. Several millions of dollars belonging to Lithuanian workers went into such corporations. Every one was waiting for fabulous profits. Cooperation was totally forgotten. But it seems that the path of profiteers was not open to simple working people. Disillusionment came soon. Most of those Lithuanian corporations in a few years went into bankruptcy and left their investors in a state of complete demoralization. The second reason for the tem- porary stoppage of the consumers’ movement was the indus- trial crisis of 1921, 1922 and the accompanying unemploy- ment. Unemployment probably was responsible for the fail- ure of many of the cooperative societies. Up to 1921 only six societies had failed; but during the three subsequent years the number of failures reached ten. The average age of sixteen extinct societies reached only three years and nine months. Of the twenty-three existing societies, eight are in Massa- chusetts, seven in Pennsylvania, two in Michigan, two in Illinois, one in New Hampshire, and one in Connecticut. All of these societies are in the cities, organized and managed by the city workers. The average age of sixteen reporting socie- ties in 1924 was seven and one-half years.’ 10 Another attempt to combine activities was made in 1918 in Mahanoy City, Pa., but without success. 11 The average age of American consumers’ societies in 1920 was four years, eleven months. If all these societies still exist (which, of course is doubtful), their average age would not exceed the average age of the Lithuanian societies. Concerning the American societies, Miss H. Parker says: “More than two-fifths of the consumer societies and nearly one-fourth of the agricultural bodies have been in business less than two years. Over 70% of the consumers and over half of the agricultural associations have been doing business for less than five years. Only Slag 1.89 respectively, have been operating for 25 years or more.” Op. eit-'p. . American cooperation is far more wide-spread in rural districts than in the cities. In 12 North Central states in 1921 there were ‘4,442 cooperative com- panies, representing a membership of 493,062 * * * {ransacting a total volume of business aggregating a billion dollars.” : “The Cooperative Elevator Movement” by Joseph B. Kenkel, p. 33. 26 CONSUMERS’ COOPERATIVE MOVEMENT Cooperative Education—DMeetings It is safe to say that until 1923 no systematic cooperative educational work had been undertaken by the Lithuanian co- operative societies. True, the majority held their monthly meetings; but these meetings very rarely discussed theoret- ical questions of cooperation, or current literature. As a rule they were occupied with the business side of activities. Oc- casionally societies invited Lithuanian speakers to their meet- ings; but again comparatively few among the intelligent Lith- uanians were then or are at present interested in the co- operative movement. Therefore, speakers for the occasion were recruited frequently from among the rank and file of the workers. Until the summer of 1923 no Lithuanian newspapers gave special attention to problems of cooperation or the cooperative movement. Nor was any Lithuanian cooperative society a member of the Cooperative League of America. Until that year the League was unknown to them. A desirable change in that regard came in 1923. Some societies applied for mem- bership in the Cooperative League and subscribed for the magazine, “Cooperation.” Moreover, the Lithuanian Associa- tion of Labor, in its ninth annual convention at Newark, N. J., voted to assume as its special task the promotion of the co- operative movement among the Lithuanians in the United States and dedicated its tri-weekly paper, ‘“Darbininkas” (“The Worker”) to the service of cooperation. Voting In all the Lithuanian cooperative societies the Rochdale principle, one vote to each member, without regard to the number of shares, is strictly observed. The same rule has been observed by all the extinct societies. This was not the result of cooperative education, or influence of the Rochdale example, which was unknown to the members. The funda- mental conception of equality characteristic to the Lithuanian mind here manifested itself.? 2 It will be worth while to re-state here the fourteen points of the Rochdale pioneers, as quoted by George Holyoke in his book ‘History of the Rochdale Pioneers,” which are the following: 1. Began a store with funds of their own providing mainly. 2. Supplying the purest provision they could get. 3. Giving full weight and measure. 4. Chargins market prices, and not underselling or competing with shop- eepers. CONSUMERS’ COOPERATIVE MOVEMENT 2. Interest on Share Capital The second Rochdale principle, that not more than the legal interest should be paid on share capital, was not so strictly followed. Out of the sixteen existing societies only seven have from the beginning fixed the interest which was to be paid on shares. Six of them decided to pay six per cent; and one, five per cent. Out of the sixteen extinct societies only three had made such decisions (four, five and six per cent respectively). None of the rest made any provision. It seems that the majority of them did not intend to pay more than legal in- terest, even in case of financial success. But in Massachusetts there is one society at least which every year pays its members an unusually large interest. It was forty-six per cent in 1917 and one hundred and forty-eight per cent in 1916. However, since the managers of that society discovered, by means of their own efforts and through experience, the third Rochdale principle of paying saving-returns for patronage, they thought it would not be proper to pay shareholders over a hundred per cent interest, and in 1922 they paid just sixty- three per cent on shares and four per cent for the patronage. But that was an exceptional case. The majority of societies made no previous decisions, not because they intended to pay very high interest, but, as some of them explained in conver- sation with me, they thought that there was no use to promise any interest inasmuch as one is not sure of paying any. As a matter of fact, no society of those which failed to fix the amount of interest—with the exception mentioned above—has paid any interest on shares. Those societies, which paid divi- dends on purchases, did not see the need of paying additional interest on shares. Some of the societies had paid neither 5. Sang, no credit, nor giving any; thus discouraging debt among working 6. GD ou profits made to members in proportion to their purchases; acknowledging that they who made the profit should share it. 7. Inducing members to leave their profits in the profit bank of the store to accumulate, thus teaching them thrift. 8. Fixing interest five per cent for share capital. 9. Dividing in the workshops the profits among those who saved them, in proportion to their wages. 10. Devoting 214 per cent of all profits to education. 11. One person—one vote. Equal economic rights to women. 12. The intention of extending cooperative commerce and manufacture by the establishment of an industrial city, in which crime and competition should cease. 13. Creation of wholesale buying society. 14. The conception of the store as an Institution, as the germ of a new social life which shall by well directed self-help insure morality and competence to all the industrious. : Quoted from the “Cooperative Movement To-day’ published by Methuen & Co. 28 CONSUMERS’ COOPERATIVE MOVEMENT interest nor dividend. Some could not; some even though able to do so decided not to pay any interest. Purchase Dividends Nine out of sixteen societies are paying their members sav- ings-return on the basis of their patronage, while only four out of sixteen extinct societies observed this rule. One society (in Shenandoah, Pa.) is conducted on the cost-plus plan, the store charging customers ten per cent over actual cost. But this society is at a standstill, not making any headway. Among the sixteen extinct societies two were on the cost-plus plan. These existed only two years. A comparison of Ameri- can societies with Lithuanian societies is unfavorable in this regard to the latter, since 90.6 per cent of American con- sumers’ societies are paying purchase dividends. The amount of dividends in Lithuanian societies varies from one per cent to twenty per cent. One society in New Hamp- shire? is paying regularly ten per cent dividend, besides five per cent paid on shares. Another society in a small town in Pennsylvania'* during the three years of its existence paid to the members twenty, ten and fifteen per cent dividends or a total of $10,615.00. As this society has only seventy-three members, the average share in dividends for each member was $145.41, or $48.47 per year, which of course had a substantial meaning for the members, all of whom, by the way, were miners. The share capital of that society is only $1,430; total sales for the year, $35,000. This turnover is due largely to the efforts of one man, the manager of the store. The Importance of Competent Leadership The success of that society is mainly due to its financial secretary, who several years ago attended for a period of three years the “Mining Institute” evening school, located in Tamaqua, Pa. There he learned English and bookkeeping and acquired a general knowledge of business and market condi- tions. Moreover, that society from the beginning adhered strictly to the Rochdale rule, sales for cash. Owing to the in- fluence of this enlightened man the society overcame all 13 Tn Nashua, N. H. 14 In Girardville, Pa. CONSUMERS’ COOPERATIVE MOVEMENT 29 obstacles and survived all dangers. During the first year it had three managers. One was a prevaricator, another adverse to work, the third dishonest. But none of these could greatly harm the society, since their faults were promptly detected by the financial secretary. The society finally procured a reliable and competent manager, who for the last three years has suc- cessfully conducted the store. His monthly salary is $175.00. In Middleboro, Massachusetts, we find another example, proving the importance of a capable and honest leader. There the society has existed for twelve years. Owing to the unfit managers and deficiencies of membership, the society has been twice in a seemingly hopeless condition. The situation was repeatedly saved through the ability of one man who, although never attending school, acquired a reading and a writing knowledge of the Lithuanian language while in the old coun- try, and later a similar knowledge of the English language in America, and has all the characteristics of an administrative genius. During the twelve years of the society’s existence it had eight managers. Five of them were either dishonest, or inebriates, or totally incompetent. Here again the financial secretary managed to save the society. He had great difficul- ties with members and managers of the store, until he dis- covered by experience two important Rochdale rules: to limit the amount of shares held by individual members, and to in- troduce paying of dividends on the basis of patronage. Be- sides, he learned how to check and control the activities of the manager. Since 1916 the society has paid members a very high rate of interest on their shares and small dividends on purchases. The administrator recently learned about the Rochdale principles and rules, and is preparing to put them into effect. Granting of Credit Eighty-seven and one-half per cent of the existing societies and the same percentage of the non-existing societies were granting credit to members, some of them even to outside cus- tomers. The amount of merchandise given for credit by the average existing society reached $1,396.47, while the average amount of credit given by extinct ones reached $1,376.85. In this regard, however, considerable progress has been made. The credit given by the existing societies amounts to 34.19 per 30 CONSUMERS’ COOPERATIVE MOVEMENT cent of total share capital (which is somewhat in excess of average American societies, where 28.8 of share capital is tied up by giving credit). But in the extinct societies this extension of credit reached even 61.73 per cent. The amount of credit given is usually decided by the man- ager and board of directors. The duration is from one week to one month or more. American societies in this regard are in better standing; 69.5 per cent grant credit and 30.5 per cent are doing cash business only. Employees and Their Salaries The Cooperative League of America has laid down the rule's, that “the sales made by each employee should average at least . . . $18,000 a year,” and expenses for salaries should not exceed six per cent of the business done. As to the first requirement the Lithuanian societies are living up to it and even doing slightly better. The sales made by the average employee reach $19,877.75 per year.’* But the sal- aries exceed the prescribed form, reaching 7.34 per cent of total turnover. (Minimum six per cent and maximum 12.21 per cent.) In all states weekly salaries are paid, ranging from $30.00 to $45.00 for the managers, and from $15.00 to $40.00 for the other employees. In the anthracite coal region monthly salaries are paid, amounting from $130.00 to $175.00. The average existing society has 2.5 employees, while in those extinct the average per society was 2.79. Progress, though slight, was made in efficiency of management. Still better progress is made in the percentage of turnover used for salaries. While in extinct societies this percentage was 8.86 in the existing ones it is 7.34. xia to start and run a Cooperative store on the Rochdale plan’ New York, p. 16 “The chain store average is $30,000.00.” Ibidem p. 13. CONSUMERS’ COOPERATIVE MOVEMENT 31 Comparative Table of Membership, Shares, Interest, Divi- . dends, Turnover and Surplus of Lithuanian and American Societies Lithuanian Lithuanian American existing extinct societies societies societies . In 16 soc. In 12 soc. 'Notal membership... --o- > 2,773 1,264 Average membership _________ 173 105 269 Lowest and highest’ number in ONE AOCIOLY. ne wren mar ao 59—450 Value per share. J. 01. $5—825 $1—8500 Two-thirds of the Lithuanian So- cieties, three-fifths of Ameri- can societies issue shares____ $5—3$10 $5—3$10 Maximum investment allowed to ONE MEMPEr.. oi $20—$1,000 $200—$1,000 In two-thirds of societies not eveeedimos, oo $100 $200 In 16 soc. In 13 soc. Total share capital... o ___._ $65,335.00 $28,995.00 Avergoe ooo Lon au $4,083.44 $2,230.38 $17,056.00 Rate of interest on shares____ 6 % 6% 5% —8 % Rate of dividends on patronage. 1% —20% 59% —6% 16 soc. 14 soc. Total IOIROVERL a na alr $795,010.25 $505,276.08 Average turnover per year_____ $49,688.14 $36,091.11 $99,406.00 Average surpluy: 1 ior $4,832.61 $5,142.00 Assets and Liabilities Lithuanian Lithuanian Lithuanian existing existing extinct societies average average Assets of total Cash on hand and in bank (11 ontiofilB) or. ol Joon inl is $23,279.42 $1,454.96 Merchandise inventory ——__—___ 39,289.54 2,455.00 $2,022.23 Buildings, land and equipment_ 122,358.00 7,647.37 2,592.84 Accounts veceivable. _ __.._.___ 22,343.46 1,396.47 1,376.85 T.oss (of 2 societies) -——______ 1,361.20 680.00 Liabilities Shave capital ol nd Nie 65,335.00 4,083.44 2,230.38 Bills payable (12 societies)___ 11,540.48 961.71 1,594.00 Accounts payable (8 societies) 63,119.60 7,889.95 1,341.66 Surplus (14 societies) --——-._- 67,656.54 4,832.61 17 Miss Parker had records for 1920 from 966 cooperative societies in America, among these 696 were consumers societies and 270 agricultural societies. 32 CONSUMERS’ COGPERATIVE MOVEMENT It is seen from the above table that, out of the sixteen existing societies, two were operating until 1923 with a loss, though not very significant; while fourteen societies had a total surplus of $67,656.54 or $4,832.61 per society, which is very near to the average American society, where surplus is $5,142.00. Accounting Accounting in existing societies as a general rule is managed very poorly. In about half of the societies it is left to the managers, or performed by the board of directors; usually neither of these is competent. In five or six societies the bookkeeper is employed only in the evening; only in two stores is the regular bookkeeper employed all the time. Even where the bookkeeping is well provided for, no printed accounts are published or distributed to members. They are read in meet- ings, accepted, and by this act all deals are closed. The real status of the society cannot be verified by members, this state of affairs resulting often in gossip and slanders. Relations with the American People In general the relations of the Lithuanian societies and their stores with the American people are satisfactory, where such relations exist. These are usually restricted to the pat- ronage by Americans of Lithuanian stores. It can be safely stated that about one-third of the total turnover is provided by American buyers. In Pittsburgh, Pa., American customers are furnishing half of the turnover; in Middleboro, Mass., even more. But the membership, with very few exceptions, is composed exclusively of Lithuanians and everywhere the foreign-born Lithuanian element predominates. The younger generation as a rule do not take an interest in the cooperative movement, as the whole educational system of the country is directed towards arousing the ambition for individual achievements. Some societies even do not want to accept members of other nationalities. There are two main reasons for this. The majority of Lithuanian immigrants have not yet acquired a sufficient knowledge of the English language, and as a result all their meetings are conducted in Lithuanian. The second reason is that the Americans living in cities where the Lith- CONSUMERS’ COOPERATIVE MOVEMENT 33 uanians dwell*® are not in any considerable degree interested in the cooperative movement. Some Lithuanian cooperators openly express the fear that if Americans were to participate in their cooperative societies, the latter would be changed from cooperation to corporation. Similarly they do not invite Americans as speakers to their cooperative meetings, simply because they have not even heard about the existence of American speakers on cooperative matters. On different political or social occasions various Lithuanian organizations invite very willingly American speakers and hold them in great esteem. But on such oc- casions the leadership usually is assumed by the Lithuanian professional or business men, who themselves are not inter- ested in the cooperative movement. The Lithuanian cooper- ators will not fail to get into communication with American cooperators as soon as they learn that such men exist in their neighborhood. The Conclusions To sum up what has been said about the existing Lithuan- ian consumers’ cooperative societies, in comparison with those extinct and with the average American consumers’ societies, we may make the following conclusions: The Lithuanian consumers’ movement in the United States was inaugurated by the immigrant workers, who were op- pressed by the exploitation of private stores. Though these initiators had many necessary and valuable natural endowments for cooperative action, they with few exceptions utterly lacked technical knowledge and skill, and therefore could not make notable achievements. However, the ground has been sufficiently prepared for more productive action, and necessary experience has been gained. The existing societies, as compared with the extinct, have made considerable progress as regards quality and quantity ; nevertheless, they have not reached in many aspects the degree of cooperative efficiency of the average American consumers’ society. Unassisted by the intelligent people of their own nationality, not getting moral support from the American cooperators, 18 Almost all Lithuanian immigrants live in the cities. The few engaged in farming are scattered throughout the United States. 34 CONSUMERS’ COOPERATIVE MOVEMENT the first Lithuanian cooperators in the United States had to proceed through a thorny path in an unknown land. Many casualties took place. Those that survived gained important experience, and the promise of future progress shines through the present cloud of darkness. This hope lies in the new generation; Lithuanian cooperators instinctively look for in- crease of the cooperative movement among the people of the United States. In the next chapter we shall discuss in more detail the difficulties of the societies described above and the reasons why so many of them failed. CHAPTER IV. Difficulties—Causes of Failure If many of the cooperative stores in the United States have met reverses, it is of the utmost importance to find out the reasons for the condition, as well as the contributory causes from without. Here again my investigation was limited to thirty-two societies of Lithuanian immigrants. Only eighteen replies were received, sixteen of which describe the causes of failure. However, these have a substantial value, because they are pictures of true American conditions. Answers from Various Classes Observations made by my correspondents regarding the difficulties of cooperative stores are of peculiar value, because they are made by men and women of varied social and eco- nomic standing. Out of the eighteen answers, eight came from male laborers, of whom only five can be classed as skilled workers. Three answers were returned by the managers of existing stores. Other answers came from the following: a pastor, a female worker, a business girl, an office clerk, a private store-keeper, an organist, and a printer. All the difficulties may be put into two classes; those of a personal character, and those arising out of environment. The difficulties of a personal kind may be subdivided into intellectual deficiencies and character deficiencies. Intellectual Deficiencies Lack of knowledge of cooperation.—Seventeen out of eigh- teen stressed this difficulty. This ignorance refers to the cooperative idea itself, and to the business methods. Five answers pointed out the total inability of members to control business. “There is no one among them who understands co- operation,” writes the pastor, referring to the society of his city ;—“they heard from some source something about the cooperative stores and they thought that perhaps they could establish one of their own. And this they did.” Is it any wonder, that under such circumstances the main condition of success, viz.: The observance of Rochdale rules, could not be [35] 36 DIFFICULTIES—CAUSES OF FAILURE assured? In six answers credit given to buyers is emphasized as a main difficulty. Such societies, according to George Hol- yoke—*“eat the calf in the cow’s belly.” In one society too great inequality of shares held by individual members was impeding normal progress. In two others a too small share capital prevented growth. Like the weavers of England, op- posing the Rochdale pioneers, “they did not understand that you cannot fight capital without capital.” In two more so- cieties, not paying dividends for patronage caused decrease in the turnover. Of course, none of these cooperators could be justly blamed for the lack of necessary knowledge, as no op- portunity to study cooperation was presented to them, either in the country of their birth or in that of their adoption. The vast majority of them can read and write only in their native tongue. They came here as adults, and, naturally, there are only a few who can attend night schools in order to acquire a new language and through it the necessary knowledge and information. Political Differences As a factor in the movement American politics do not enter, or, if so, only to a slight degree. Not so with the politi- cal differences on their own national ground. These pertain mainly to the religious attitude of members. The philosophy of life, whether with religion, or without it, is a matter of greatest importance to the Lithuanian workers. Only an inconsiderable minority of them are indifferent in this regard. They are divided into Christians, Democrats and Socialists. The latter as a rule are free-thinkers. No wonder then, that in three societies, the lack of religious and political tolerance? Te Jlistory of the Rochdale Pioneers,” by George Jacob Holyoke, London, STs 2 There is a fundamental difference between the United States and Lithuania as regards the relation between religion and politics. Here in the United States no political party in Congress is in opposition to religion and the Church. In Lithuania there is more than one such party. In the United States the principle of separation of religion and politics was a necessary outcome of the very different religious affiliations of the people. In Lithuania, where Protestants constitute only 2 per cent of the total population, and the rest of the Lithuanian people are Catholics, the Church of the country exercises a dominant influence upon the life of the nation. The new constitution of Lithuania, though perfectly tolerant of all religious organizations, expressly recognizes the Christian character of the State and demands religious education in the schools. But this is strenuously opposed by all the socialistic parties (communists, social-democrats, and national socialists). The varying attitude towards Church and education presents a fundamental issue to the political parties of Lithuania. Some echo of these differences is apparent in relations among the Lithuanian immigrants in United States. Here the battles are fought not in a political field, but in social life, in organizations and in periodicals. Here, too, the churches and schools are the primary issue, Socialists opposing, Catholics defending. DIFFICULTIES—CAUSES OF FAILURE 37 is regarded as a grave obstacle to the development of the cooperative movement. Character Deficiencies Intellectual deficiencies are too often accompanied by char- acter deficiencies. Apathy and indifference of the workers, even of the mem- bers, are emphasized by two of my correspondents. One of them states: “Those who do not desire freedom, must be slaves.” Lack of the spirit of solidarity is stressed in five answers. It appears that the spirit of individualism may prosper in both social extremes: in the environment of abundant wealth, as in America, and in poor and oppressive conditions, as under the regime of the Czar. The older generation of Lithuanian im- migrants, who make up the vast majority of the membership of Lithuanian consumers’ societies, have nurtured their in- dividualistic tendencies in the atmosphere of suspicion and oppression. “Selfishness, narrow individualism’ writes the Catholic priest already quoted, “is a direct consequence of centuries of oppression. The workers hold in esteem private property, and especially their own, but they do not care much for the public good.” The new economic surroundings do not socialize the immi- grant. On the contrary they tend to increase his inclination to individualism. “The immigrant goes to the factory,” writes my printer-correspondent: “and makes money without diffi- culty from the first day. If workers wish to have successful cooperative establishments, they have to study, to assume risks, and to go through long experience. Why all this trouble, if you are making nice money in the factory, and live in plenty, at least for a while?” Therefore, it is no wonder that in four answers we find a lack of self-demial or self-sacrifice, and spiritual laziness strongly emphasized. Such a disposition naturally prevents the mind from thinking clearly, from looking to a distant future, and hinders the body from enduring additional hard- ships. It is interesting to note here that, among the existing difficulties found in connection with the Lithuanian stores, the demand by members to have merchandise delivered in 38 DIFFICULTIES—CAUSES OF FAILURE their houses, for which they refuse as a rule to pay additional price, is mentioned by some of my correspondents. Only one or two decades ago these same ‘“‘cooperators’ in their native country were accustomed to walk six to eight miles every Sunday to attend church services, or to travel in carriages many more miles to a distant market place to sell or to buy unimportant articles. Two answers pointed to the great variety of characters and views among the members as an obstacle to cooperation. As indicated by a female worker, “Some believe in money, some in drink; those who have ideals, do not have knowledge. Only a few have in their hearts love of God and of neighbour.” Avarice of members. After paying a small amount into the society, many expected riches. This is brought out by three of my correspondents. Atheism, as a demoralizing factor is mentioned by two correspondents. One of them, a common laborer, writes: “If a free-thinker belongs to the society, he has to rule and man- age. If he cannot, he becomes an enemy.” Lack of persistency is mentioned in one answer, as a great character defect in our cooperators. Outside Difficulties The environmental difficulties of the cooperative movement among the Lithuanian immigrants are of a two-fold char- acter: (1) moral-cultural, and (2), social-economic. Among the moral-cultural obstacles the general atmosphere of individualism should be mentioned in the first place. The immigrant perceives this in the workshop, where thousands of people are closely packed together, but nevertheless lack a common tie of friendship, and in a moral and spiritual sense are widely separated. He experiences it in his relations with his closest neighbours, who are hardly more than mere acquaintances. He observes this spirit on the street, where everybody rushes madly in pursuit of individual ends. He sees it reflected in periodicals, in meetings, in business. His sons bring from the schools their individual dreams of business and profits. He cannot escape it even in church, where pay- ment is required for an individual seat, a custom unheard and unthought of in his native country. Is it surprising that DIFFICULTIES—CAUSES OF FAILURE 39 from the dawn of his life in a new country the immigrant is more and more encouraged to “mind his own business,” to pursue his aims regardless of others, and to cherish the hope of becoming rich quickly? Such an atmosphere is not conducive to cooperation. Lack of sources of information is another important diffi- culty. The Lithuanian periodicals, with one or two exceptions, have completely ignored the subject of cooperation. The majority of them are published by corporations, organized as capitalistic enterprises. The minority, operated by private publishers, are motivated mainly by the desire of quick finan- cial success. They will ignore cooperation, at least so long as a wide demand on the part of the reading public does not manifest itself. Until 1923 there was published no piece of instructive literature on cooperation in the Lithuanian language. The amount now published is quite inadequate. Lack of leaders and of encouragement from influential peo- ple, is another serious difficulty. The priests are the natural leaders of the majority of Lithuanian immigrants. But here the position of the clergy in regard to cooperation is entirely different from that found in Lithuania. There, commerce was almost exclusively in the hands of Jews. It was imperative, and proved to be very popular, for the clergy to help the popu- lation in their attempt to liberate themselves from the eco- nomic exploitation. Moreover, the priests were the only per- sons who could help the population in that economic struggle; for until the beginning of the twentieth century no educated lay Catholic Lithuanian was permitted by the government to hold any responsible position. In American parishes the majority of the grocers and butchers are Lithuanians, most of them church members. Some kind of “impartiality” is almost imperative to the priests. The intelligent laymen and women are either employed in offices, or if professional or business men, are tied up in many ways with the business world at large. They are bound by innumerable ties, both visible and invisible, to the capitalistic system. The grip of the system is strongly felt in every phase of life. Thus the unskilled and uneducated workers are left to their very limited capacities. Cooperative progress is of necessity extremely slow. 40 DIFFICULTIES—CAUSES OF FAILURE Lack of competent store managers. This is mainly due to the lack of special preparatory schools.! Fourteen societies out of the eighteen, complained about this most important difficulty. It would be hard to determine whether the inability or the dishonesty of the managers was more detrimental. In some cases probably both deficiencies contributed. One thing is certain, in the majority of cases of dishonesty, a great part of the responsibility should be assumed by the Boards of Di- rectors and by the membership. Neither of these groups knew nor endeavored to establish a reasonable method of control. One correspondent writes: “If the manager is fit and capable, he leaves after a year or two and establishes his own business; if he is lacking initiative or knowledge, he is work- ing unwittingly for the destruction of society.” Among the difficulties of a social-economic character, a sort of “highway robbery” by a threefold group of exploiters should be mentioned first. There have been three kinds of exploiters of the Lithuanian workers during the last few years: (1) Fake-bankers, or stock-dealers, who paid enormous interest on investments, and with “specials” of every kind succeeded in turning the heads of all who were eager to become rich. It has been estimated that those fake bankers collected from the Lithuanians of Chicago alone several millions of dollars; (2) Organizers of Lithuanian corporations on a capitalistic basis, after Lithuania was recognized as an independent coun- try. A score of such corporations have been established. They have raised between four and six millions of dollars. Two motives were utilized to extract the workers’ money, patriotic, viz., to reconstruct Lithuania economically and financially and acquisitive, viz.,, enormous dividends were promised. The majority of those Lithuanian-American corporations are dead. Only three of them paid any dividends. None is paying divi- dends any longer. The majority of them failed on account of the incompetency of managers and directors ; some have ceased their existence through the crookedness of leaders, who have desperately followed the motto, “get rich quick.” (3) Fake- cooperative schemes, put forth as “a new Rochdale-American 3 The first summer school of this kind, of five weeks’ duration, was held in September, 1923, in Minneapolis, Minn., with fairly good success. Twenty-two students pursued the course. The Finns in Superior, Wis., have conducted such a school in the Finnish language during the last five summers, and thus prepared over a hundred enlightened managers for their stores. DIFFICULTIES—CAUSES OF FAILURE 41 plan,” advocated in Chicago in 1919-1921.* Among the agents trained for selling shares were a few Lithuanians, who suc- ceeded in collecting from Lithuanian workers of Illinois, Mich- igan and Ohio at least several hundred thousand dollars. All these schemes were equally disastrous morally and socially. Lithuanian workers became extremely skeptical concerning all corporate activities. This attitude was further developed after the failure of many cooperative societies in 1921 and 1922. The cooperative movement among Lithuanians has ceased for some time to come. No consumers’ society was established by them in 1922. Only one appeared in 1923. The intense competition with chain stores and private stores is another important difficulty, which is very hard to combat. The competition of chain stores was not strongly felt until the immigrants learned to speak a few words of English. Now the difficulties of language in many cases have been overcome, at least to the extent that the Lithuanian is understood by the store-employee, or grown-up children are sent to do the shopping. Competition by the chain stores is now keenly felt. In many places chain store prices are about the same as those which the cooperative stores have to pay for their supplies. Almost similar difficulties are created by the private Jewish stores. Among the American Jews are many emigrants from Lithuania, who are well versed in the Lithuanian language. In many Lithuanian colonies the same trading relations are observed as in the old country. The seller is the Jew, the buyer the Lith- uanian. Commercial facilities for Jewish store-keepers are far greater than for Lithuanians. This is due to the innate Jewish skill, the experience of centuries, the abundance of capital, the knowledge of customers, and racial solidarity. Moreover, the majority of wholesale houses in which Lith- uanian stores are obliged to buy are in the hands of Jews. The competition of private Lithuanian stores is more easily overcome. But it becomes a significant factor when those private dealers indulge in various practices of doubt- ful moral character, which is quite frequently the case. Instability of membership is another important difficulty. * The Rochdale-American plan has been hopefully accepted even by some econo- mists of high standing, like for instance, by Mr. G. S. Watkins. Cf. his booklet “Cooperation—a study in constructive economic reform,” University of Illinois Dulletin, March 14, 1921, p. 7. 42 DIFFICULTIES—CAUSES OF FAILURE The Lithuanian worker, even with a family and property, cannot regard himself as a settled citizen of a community. The great majority of houses held by them in reality belong to the banks or to the real-estate companies. In case of prolonged unemployment many families have to move to another city to make a livelihood. In such cases, the losers are not only the families leaving their homes, but the stores too, with which they are unable, sometimes unwilling, to settle accounts. This is especially the case with single workers who move from place to place according to the conditions of the labor market. Another difficulty is that the members are scattered through the city, and it is a real hardship for some of them to pur- chase goods at their society store. On the other hand, it is a great financial burden for the store to convey merchandise to the homes of such members. The temporary character of the stay in America of some immigrants constitutes another hindrance to the coop- erative movement. Many of those who intend to return to the country of their birth do not wish to involve themselves in financial transactions which to some extent would bind them. If to all these causes, we add one more, which is common and fundamental, viz., that the present economic system provides to the immigrants, at least for many years, welfare and wages which are much higher than in Europe’, then it will be clear that the economic, social and moral conditions among the immigrants in the United States are not con- ducive to the spread of cooperative movement. The rural population in the United States is in a different situation economically and therefore the cooperative movement is much stronger in the country than in the city. The city workers during times of industrial depression do not take financial risks; they may move to another city, even to farms; or if they remain in their own cities, they live on credit and are afraid to spend a dollar for any invest- ment. Hard times, it is true, usually furnish better ground for the psychical reaction in the cooperative direction. But ’ “There has been a higher degree of individual comfort here than in Europe, which has made people less cognizant of the need for small economies and so has retarded the expression of the associative spirit and the development of cooperative action in Dreduiction and distribution of commodities.” W. G. Watkins in ‘‘Co- operation’ p. DIFFICULTIES—CAUSES OF FAILURE 43 lack of far-sightedness and intelligence, defects of charac- ter, and the lack of intelligent leaders prevent workers from cooperative activities. But those hard times are easily forgotten after the boom of industry reappears. The workers are glad again to re- ceive high wages and do not mind a continuous rise in the cost of living. Despite the high cost of living, those who are thrifty accumulate savings, often at the expense of health and happiness, refusing themselves the elementary comforts of life, until some repercussion of the globe, social or political, comes again, when all their savings disappear to feed the appetites of another band of profiteers. To persevere in the movement, to fight constantly adverse conditions, requires men and women of unusual character and energy. To maintain the cooperative movement among the city workers in America at present requires high virtue and real sacrifice. In reality the movement is kept afoot and fostered, not by those having economic or social power, not by the intellectuals, but by the very small groups of workers, men and women of high ideals and admirable character, but, so far, of insufficient capacities. Yet there is a possibility and even probability of a brighter future. This hope is kept alive by those who have overcome all obstacles. Let us listen again to the two suc- cessful financial secretaries. One of them writes from Pennsylvania: “The conditions of the cooperative move- ment here in the United States are not any worse than in other countries. The best thing is that the government does not interfere. All we need is the enlightenment and unity of the workers.” Another from Massachusetts writes: “If unity among the workers were attained, there would be no difficulty for the development of the cooperative movement in America. Cooperation mostly needs competent and honest workers and leaders, who command the confidence of the people. Let us busy ourselves with education, and the problem will be solved successfully.” These are encouraging voices. They give a hope and a guarantee for the future. And they probably have the key to the solution of most of the difficulties in education and unity. 44 DIFFICULTIES—CAUSES OF FAILURE Causes of Failure The reasons given above likewise explain the failure of the sixteen societies from which I obtained records. Usually there was a combination of all or of many of the difficulties enumerated above. They varied a great deal in quantity and quality, according to various local conditions. Certain causes of failure, however, were particularly emphasized by my correspondents. They referred to mem- bership, management, non-observance of Rochdale rules, and outside factors. 1. Membership. Members ignorant of cooperation, in four societies; lack of solidarity among the members, in four so- cieties ; members scattered, in one society ; members apathetic, in one society. 2. Management. Ignorant managers, in six societies; dis- honest managers, in eight societies; incompetent and inactive board of directors, in two societies. 3. Nonobservance of Rochdale rules. Credit given to mem- bers and non-members, in seven societies; insufficient capital, in one society. 4. Outside causes. Competition of private stores, in two societies ; competition of chain stores, in one society. ‘Conclusions. Owing to the numerous internal and external obstacles, the development of the consumers’ cooperative move- ment among the Lithuanian immigrants could not but be slow, and the actual failure of more than half of the established cooperative stores is but a logical effect. However, due to the experience gained in the first endeavors and to the general spread of education and enlightenment among the immigrants, there is rising a new generation of en- lightened leaders who, with the help of some intellectuals, will probably manage not only to continue but to extend the move- ment. The simultaneous increase in strength and expansion of the general cooperative movement in the United States will give Lithuanian cooperators, as a constituent part of that movement, additional encouragement and strength. CHAPTER V. Insurance Cooperation The broad term, “Insurance Cooperation,” perhaps does not fit the limited scope of the insurance cooperative activities of the Lithuanians in America. On the material side in most cases they provide only sick benefits and funeral benefits. But, as these benefit societies were the first cooperative endeavors made by the Lithuanian immigrants in United States, as they now extend to practically all the Lithuanian communities, as they have exercised very great influence upon the life and development of the Lithuanian immigrants, they rightly de- serve a place in this discussion. Field of Investigation The writer’s task was to ascertain the approximate number of Lithuanian benefit societies in America, their membership, character of activities, their assets in money and buildings, their cultural achievements. Questionnaires were sent to about two hundred sixty Lithuanian colonies. Answers have been received from only fifty-eight, mostly small and insignificant. Eleven colonies are so small that no local benefit societies could be organized. There are branches of one of two Central Lithuanian alliances. Only forty-seven answers are con- sidered here. They refer to communities which have twenty- eight Lithuanian Roman Catholic parishes and churches. The results of this investigation are comparatively poor, mainly for two reasons: (1) It required a considerable sacri- fice on the part of the persons addressed by me to collect data from fifteen to twenty, or even more societies in large com- munities. No one from among the largest, and only a few from medium sized communities, furnished information. The vast majority of the answers came from small communities. (2) Some societies evidently were suspicious of the aim of the investigation, although this was plainly stated. They prefer to live and act unnoticed by the outsiders. The answers furnished data on one hundred thirty-two benefit societies.® In twenty-eight communities where 1In forty-seven communities, whose answers are discussed here, there are one hundred eighty-four other various organizations of a cultural, economic, and social character, which makes the total number of organizations in said forty-seven communities, three hundred six. [45] 46 INSURANCE COOPERATION churches exist there are altogether ninety-nine benefit socie- ties or about three and one-half societies per community. In the United States there are many Lithuanian communities with parishes, having ten, twelve, or even more local benefit organizations. It will not be an exaggeration to assume that in the average Lithuanian colony having a parish and church (of which the total number in the United States is one hundred fifteen), there are not less than six benefit societies, which would make the total number of benefit societies in Lithuanian parishes about eight hundred. If we add at least two hundred societies for the communities where no parishes are organized, we can set the total probable number of such benefit societies at one thousand. The average membership, financial status and achieve- ments of these investigated societies, if multiplied by one thousand, would give a very conservative figure of total mem- bership and total achievements of Lithuanian benefit societies in the United States. The real condition is probably much better because the societies in old and large Lithuanian com- munities, whose records it proved impossible to procure in a short time, are much longer established, more numerous and probably blessed with far greater achievements. Motives of Organizers The organization of benefit societies was dictated by the instinct of self-preservation. New life in entirely different surroundings, in the midst of different people, new kind of work in factories and mines, involving great risks for life and limb,—this new environment suggested by itself the necessity of organizing for mutual insurance purposes. The objects were insurance against accident and sickness and provision for at least a decent Christian burial. Be- sides these, there were other motives of even greater im- portance. Wherever two or more score of Lithuanians gathered, they ordinarily began to think and talk about establishing their own parish and obtaining a priest of their own nationality. For several good reasons this was of great importance. First, they wanted to preserve their Catholic religion; and, secondly, a parish gave them an opportunity to become independent of the Poles, and to establish and INSURANCE COOPERATION 47 preserve their own distinct nationality. Centuries of forced union with the Poles caused the other nations of the world to lose track of the Lithuanian nation. In the old country, the Poles represented landlords, the class of economic op- pressors. The traditions of an intolerable yoke under Polish landlords were fresh in the memory. No wonder, then, that many of the first Lithuanian settlers in the United States did everything in their power to rid themselves of all Polish ties. Their own benefit societies had to be their first means of self-determination. Back of them was the hope of or- ganizing parishes and of building churches. In most of the Lithuanian communities, the local benefit society was the forerunner of the parish. The society made the first endow- ment for the parish, and very frequently provided its name. In Baltimore, the benefit society of St. John the Baptist was organized in 1884. The Poles offered their hall for the meetings, but the Lithuanians refused to accept the courtesy. They held their meetings elsewhere and soon decided to start a parish organization. The members of St. John the Baptist Society voted to pay ten dollars each as an initiation fee and afterwards two per cent of their incomes for the future church. When a parish was finally established, it assumed the name of the Society. A similar procedure was followed in the great majority of Lithuanian communities. The societies usually assumed the name of one of the patron saints most loved in Lithuania. Among them may be mentioned St. John the Baptist, St. George, Sts. Peter and Paul, St. Anthony, St. Francis, Immaculate Conception of the Blessed Virgin, Our Lady of Vilna, of the Holy Rosary, St. Agatha, etc. The last named were assumed by the women’s benefit societies. At times the names of national heroes were used, for instance; Vytautas, Gediminas, Algirdas, Keistutis, Daukantas, Bishop Valancius, etc. Character of the Societies In their religious, moral and social character, the Lith- uanian benefit societies strongly remind us of the medieval guild organizations, although the scope of their activities is not so wide and important, especially in the social-economic field. In a moral and religious sense, they have had and 48 INSURANCE COOPERATION continue to have a powerful significance and influence in the life of Lithuanian immigrants. They had to help and foster religious beliefs and prac- tices. By the constitution of the societies, members were re- quired to fulfill faithfully all religious duties, especially Easter confession and communion.? On the day of the pa- tron saint of the society and the day of Easter confession, all members with their badges on their breasts were obliged to come to church in a body. Those who refused to par- ticipate in these solemnities were not tolerated in the societies. It was a public profession of their faith. The meetings always commenced and concluded with prayer. On the feast of their Patron, the societies usually con- ducted social entertainments for the families and guests, with theatrical performances, speeches, concerts, suppers, ete. 3 The societies have always been of great financial aid to the parish and its pastor. The contributions to the moral and social life of members by the benefit societies are also significant. Members are required to help one another in distress, to visit the sick, to attend funerals, and, following the ancient custom, to keep vigil during the period in which the corpse is waked, during which time prayers are said and hymns sung. The monthly dues of the societies are usually small; but when a great necessity arises an extra collection is made. These societies have been of great importance in the social development of Lithuanians. After long centuries of oppression and forced ignorance, the Lithuanians have ob- tained through these societies a school of free sociability and parliamentarianism. They became in a way cultured gentlemen, acquired power to express themselves logically and intelligently. Many societies have established small libraries, which improve the intellectual status of their members. Through the instrumentality of their own language and customs, these societies prepared gradually, though indi- rectly, for better citizenship. By providing help for their members in case of sickness and death, they taught self- 2 Owing to the strong anti-religious agitation of socialists and free-thinkers, rampant during three decades, and especially before and during the war, about one-third of all the benefit societies severed their affiliations with religion. INSURANCE COOPERATION 49 support and so relieved industry at large of many possible dependents. By helping to build churches and schools and by building halls and clubhouses, they contributed largely to this country’s material and social culture. They helped a great deal in the resurrection of their mother country, having contributed generously during the last few decades toward its liberation from foreign oppression. Many societies took up the direct task of preparing mem- bers for citizenship. In the great majority of Lithuanian communities there is at least one citizen’s club which propa- gates the idea of citizenship and prepares the members to become citizens. Insurance Societies Membership of sociefifes) 2. cpa Ln SNE Sir 20—1,200 Total membership in 132 zocletiey 15,359 Average membership of each society ___________ 116 Monthly fees. lil loa wb di, 05 S00 10c—$1.00 Paes mostly favored... .oobe dale Judd, Cll aan] 25¢—50¢ Weekly slekness benefiis. oon ac Loo ono $2.50—$10.00 Benefits: mostly favored... die othe ot 5.00— 6.00 Burial beneflls. oo a. oo lGn S anol ewe vin EE 50.00—300.00 Amounts megtly favored... o_o. 100.00—200.00 In addition to the above, in case of death all members in some societies are assessed (each) ____________ 1.00 Money, land and buildings of 132 societies ______ 344,966.00 AVerage leas dest Ri Bonne an Leiba 2,613.37 Donations for religious and cultural purposes______ 29,366.00 Donations for religious and cultural purposes in Lithuania 0 oe wa, A 18,638.00 It is apparent that in the majority of the societies the sick- ness and burial benefits are too small to satisfy even modest needs of the members. However the societies were not created to provide for all the needs of the stricken members, but only to give some subsidy. Every member is supposed to provide his own savings. Besides, there are many workers who belong to two, three or even more benefit societies. Tt is obvious also that too great variation exists in the sick- ness and burial benefits. Sickness benefits in the societies with fifty cents monthly dues vary from five dollars to ten dollars, and burial benefits from fifty dollars to three hundred dollars. In societies with twenty-five cents monthly dues the 50 INSURANCE COOPERATION sickness benefits vary from two dollars and fifty cents to seven dollars weekly; and burial benefits from twenty-five dol- lars to two hundred fifty dollars. Apparently there has been no attempt to determine the amount of benefits on a more or less scientific basis. Never- theless, no society has become bankrupt on account of too low monthly payments by the members. Evidently the organizers of these societies and the members themselves did not attach too much importance to the question of dues. Societies pros- pered despite the low fees, and high fees did not always mean prosperity. In fact, monthly dues in many cases are not the principal source of income. The treasury of the society can be supplemented from entertainments, picnics, extra assess- ments, ete. How then were dues and benefits determined? It depended on many local circumstances. In large communities, where there were prospects of a great number of members, the monthly dues were put lower and benefits higher. For such societies extra income would be more available. In small cities with very limited communities, the dues were higher and benefits lower. Again, an important factor is the spirit of individualism and competition among the Lithuanian immigrants. If one’s friend or neighbour, John, organized St. John’s society and successfully managed it, then why should not George organize another and call it St. George’s benefit so- ciety? If George feels that he will easily get followers with- out bettering conditions (lowering fees, or raising benefits), then he organizes a new society in the same community and on the same conditions. If he is doubtful about success, he lowers the fees and raises the benefits. In either case the chances are ninety-nine to one that St. George’s society will succeed, and that St. John’s society will not perish. The prosperity of both, in membership and in finances, will, indeed, be limited; but as time goes on both societies will be recog- nized as important factors in the life of the local community; both will acquire ardent and zealous supporters, and each will build up its peculiar character and traditions. It often happens when the popularity of the leaders of an existing society begins to vanish, that some new influential leader of the community appears. If this man has social am- INSURANCE COOPERATION 51 bition, he will grasp a favorable opportunity and organize a new society. Again, the common phenomenon is observed that a society, formerly Catholic will, owing to the influence of members who have become free-thinkers, change the constitu- tion and abolish religious restrictions. In that case Catholics, instead of fighting free-thinkers, usually withdraw from the society and establish a new one having a religious character. Where Catholic leadership is strong, there the free-thinkers will separate and establish the so-called “free” benefit society. Sometimes the initiative for the new society is taken by the local pastor, for some good local reasons. Financial Status All of the one hundred thirty-two societies have accumulated some reserve, which as a rule is slowly increasing. The smallest of the societies, which is in Granville, Illinois, has but three hundred dollars in its treasury. But there are societies with fairly good financial status, as for instance: St. Bartholomew Benefit Society, Lewiston, Me.__________ $30,000.00 St. George's Benefit Society, Brooklyn, N. ¥._-__________ 20,000.00 Lithuanian Athletic Club, Brooklyn, N. ¥._.___~_ _____.__ 20,000.00 Sts. Peter & Paul Society, Braddoek, Pa. ___ _____ 15,000.00 Lithuanian Progressive Club, Youngstown, Ohio________ 13,000.00 Tithuanian Citizens” Club, Donora, Pa... = ~~ 8,500.00 The property, money, land and buildings of the one hundred thirty-two societies have a total value of three hundred forty- four thousand, nine hundred sixty-six dollars, which makes an average of two thousand, six hundred thirteen dollars and thirty-seven cents. The average property value of the benefit societies in old and large communities certainly exceeds that sum considerably. But even if we estimate the average prop- erty of all the one thousand Lithuanian benefit societies in the United States only as high as two thousand, six hundred thir- teen dollars and thirty-seven cents, we would have a total sum of two million, six hundred thirteen thousand, three hundred seventy dollars, which shows a material achievement of con- siderable importance. True, the value of one good State or Federal building may exceed that total sum; but when we re- member, that these financial results were achieved by simple workers, without any intelligent help from professionals (ex- 52 INSURANCE COOPERATION cept when well paid), without subsidies and help from outside, but solely out of their hard earnings, we should give them credit for their achievement.? Cultural Achievements To the question, “How much on various occasions has been donated by the benefit societies for churches, schools, and other cultural purposes in this country?” answers have been re- ceived from only thirty-three communities. The others did not supply information, probably because of the labor involved. From these partial answers it appears that the total sum of twenty-nine thousand, three hundred sixty-six dollars has been donated for the purposes described above, an average of eight hundred eighty-nine dollars and eighty-eight cents per com- munity. For the various cultural needs of Lithuania, thirty- eight communities gave a total sum of eighteen thousand six hundred thirty-eight dollars, an average for a community of four hundred ninety dollars and forty-seven cents. These data, of course, are very inadequate even for the benefit societies, many of which gave no information at all. Moreover, those needs are mostly fostered and satisfied by various Lithuanian cultural societies, which are even more numerous than the benefit societies. The cultural merits of the benefit societies are undoubtedly considerable. If we assume the total number of Lithuanian communities containing some organizations at three hundred, a very conservative estimate, the total dona- tions for cultural purposes by the Lithuanian benefit societies would be two hundred and sixty-six thousand, nine hundred and sixty-four dollars for the United States, and one hundred and forty-seven thousand, one hundred and forty-seven dollars for Lithuania. Amalgamation of Societies During the last few years a movement has been going on among the smaller societies to combine and form stronger societies. This movement is not yet universal, and has a spo- radic character. It is due to two causes: (1) Before the war 3 The value of one hundred fifteen Lithuanian churches and their properties, estimated at only one hundred thousand dollars on the average, would make a total of eleven million, five hundred thousand dollars. About half of this sum is already paid off. Another half is being paid quite successfully. The credit for this achievement belongs mostly to the common Lithuanian workers. INSURANCE COOPERATION 53 all the societies, even the small ones, could prosper without any fear or danger of extinction. The new streams of im- migrants supplanted those deceased or departed, and societies could steadfastly increase in numbers. The war and subse- quent restrictions of immigration prevented the influx of new members from the old country. A younger generation is ~ not always eager to support the organizations established by their fathers. (2) The old spirit of factionalism and separ- atism is disappearing and a new understanding has come of the necessity of combination. This new spirit expresses itself in affiliation with one or two Lithuanian alliances, two great central fraternal organizations of Lithuanians in the United States. Lithuanian R. C. Alliance of America This is probably the most powerful Lithuanian organization in the United States and has the largest number of members. It was founded in 1886 by the noted Lithuanian patriot, Father Alexander Burba, at Plymouth, Pa.* The main objects were: separation from the Poles and the unity of Lithuanians; and educational-social uplift. It was primarily intended to be a cultural organization. Members paid in the beginning only fifty cents a year and received in return a periodical. In order to attract more members it was decided to pay one hundred and fifty dollars burial benefit. When a member died all were assessed fifteen cents. But as the number of members grew, those additional payments became quite annoying, and in 1897 the members decided to pay a yearly amount of two dollars. At the beginning it was called “Lithuanian Alliance of America.” When the influence of free-thinkers made itself felt, in 1892, the Alliance inserted into its name the word “Catholic.” But this measure served only to increase the ag- gressive spirit of the free-thinkers; and, being in a minority, in 1901, during the sixteenth convention in Wilkes-Barre, Pa., twenty-eight delegates out of the total number of sixty-five demonstratively left the convention and founded their own alliance, naming it “Lithuanian Alliance of America.” The total membership was then about twenty-four hundred. Of this number fifteen hundred remained with the old alliance and about nine hundred went to the new one. The treasury Tege “Metrastis” of 1916, the article of J. S. Vasiliauskas on the history of L. R. C. Alliance of America. 54 INSURANCE COOPERATION ($2,000) remained with the Catholics. During the same con- vention a new addition to the name was made; i. e.,, Roman Catholic. In 1902 yearly dues were raised from two dollars to two dollars and fifty cents. A reserve fund was established with an initial deposit of one thousand dollars. In 1905, a fund for the independence of Lithuania was created. In 1907 a cultural fund was established with an extra yearly payment of ten cents by each member. The death benefit was equal for all: One hundred and fifty dollars. In 1907, two new burial benefit quotas, two hundred and fifty dollars, and five hundred dollars, were introduced. In 1912, an orphan fund was established, with payment of five cents for every member. In 1914, four degrees of insurance against sickness were in- troduced: For monthly payment 25c—sickness benefit $3.50 weekly c cc [3 50c— 3 [ 7.00 [4 c cc é 75c— € & 10.50 & cc fc k $1.00 ep & £< 14.00 cc Besides there were added two new life insurance policies of seven hundred and fifty dollars and one thousand dollars. The readjustment of dues was voted upon. The Alliance de- cided to adapt itself to the “National Fraternal Congress Table of Mortality,” with its monthly dues according to the age in which a member joins the Alliance. In 1921, two more life insurance policies were introduced, viz.: Two thousand and three thousand dollars. Lithuanian National Alliance of America After the separation from the Lithuanian Catholics in 1901, this new alliance grew rapidly. The rank and file of this Alliance has always included a good number of Catholics, but the leadership has been controlled entirely by those who are in opposition to Catholics, namely, Na- tional Liberals and Socialists. This alliance was a few years ahead of the Catholic Alliance in adjusting itself to the “National Fraternal Congress Table of Mortality,” and was benefited accordingly. Each Alliance has about three hundred branches and publishes its weekly paper: The Catholic Alliance—“Garsas” (“Echo”) in Brooklyn, N. Y., INSURANCE COOPERATION 35 and the National Alliance—‘Tevyne” (“Fatherland”) in New York. The Comparative Growth and Status of the Two Alliances Lith. R. C. All. of Am. Lith. All. of Am. Membership in 1910_________ 4,908 pilin aii aasad o ESNI0 ee LL 12,118 12,287 te “GDB Ji sl 17,485 15,385 Net assets in 1910... $22,198.47 4 SSR IPOTON pide Ba 227,753.13 $312,865.77 of the ONS ea 433,707.65 542,746.58 Total sum of insurance in 1923_ 6,895,250.00 5,796,350.00 Lithuanian R. C. Woman Alliance In the two alliances already described women and men are accepted to membership on equal terms. But in 1915, a group of Lithuanian Catholic women determined to estab- lish their own central organization. Their main objects were religious, social, national and cultural. To these ob- jects they added a more material one: life insurance and insurance against sickness. The membership and net assets of their organization grew as follows: Membership Net Assets TRONS ool sel prdn inn Ales Yo pete a od 400 $541.69 I IOT0 oni nai Mle maaan 1,039 1,602.67 IOUT i sh... niet ross easc me 1,307 3,647.08 mois, rr ad 1,569 6,365.62 Wmi02l on inen ane dois 1,844 10,776.89 Imto2s ule udihd Benn, 0 1,874 15,874.70 The Women’s Alliance has about sixty branches, pub- lishes its own monthly magazine, “Moteru Dirva” (‘“Wom- en’s Field”), holds annual conventions and does a great deal to improve the economic, cultural, religious and moral status of Lithuanian women and girls in the United States. Many branches of the Women’s Alliance in their cultural work are in touch with women of American organizations. Conclusions Lithuanian benefit societies in the United States, although with a limited scope of activities, and with achievements, perhaps not to be boasted about, nevertheless held a very 56 INSURANCE COOPERATION important place in the life and development of Lithuanian immigrants. They have contributed greatly to the cultural and social welfare of the immigrants and to the national and political resurrection of Lithuania. They have both directly and indirectly prepared the Lithuanian immigrants for better citizenship. With the progress of education and enlightenment, a new tendency towards centralization of mutual insurance has developed. Societies have amalgamated, or joined one of the two Lithuanian Alliances. These two alliances, together with the Women’s Alliance, constitute the most important economic and cultural Lith- uanian organizations in the United States. CHAPTER VI Other Forms of the Movement— Attempts to Unify It Other forms of the cooperative movement among the Lithuanian immigrants are Building and Loan Associations, Cooperative Halls, and Cooperative Production. Building and Loan Associations This type of associations is very popular among the Lith- uanians. At least half of the large Lithuanian colonies have one such association; sometimes we find two or three of them in one community. Their popularity has been mainly due to the fact that this type of organization was easily accessible, not requiring any extraordinary knowledge to manage. The only virtue required among the members is that of thrift. The Aim and Character of Organization The building and loan associations aim to enable their members to accumulate savings for the purpose of securing a home and undertake the loaning of money on real prop- erty. In most cases the capital stock of association is one million dollars, divided into ten thousand shares of one hundred dollars each. No individual is permitted to hold more than one hundred shares. In associations of Illinois, Ohio, and Maryland shares are set at $100.00. They can be paid during twelve years (1214c weekly per share), or dur- ing six and one-half years (25c weekly). For each share of stock the holder is entitled to a loan of $100.00, for which he pays six per cent interest. Members, however, are re- ceiving about seven and one-fourth per cent on their install- ments. Interest accrues until the shares mature. In Philadelphia, Pa., a similar Lithuanian association has a different arrangement. There the value of each share is $200.00. The shares can be paid by monthly installments of $1.00 for each share during eleven years and four months, or by the installments of $2.00 per share every month during six years. [57] 58 OTHER FORMS OF THE MOVEMENT After shares are matured, the full value is paid back to the members. Loans taken by members from the associa- tion are returned by them in weekly or monthly payments. These loans are given usually on first mortgage. After all payments are made, one ceases to be a member. His place is taken by some new member, unless he chooses to begin to pay for new shares. Although these associations lack the genuine cooperative spirit, they have promoted the material progress of the immigrants. The “First Lithuanian Building and Loan Association of Philadelphia, Pa.,” during its twenty-three years of exist- ence has helped over one thousand persons to acquire their own houses. A similar association of Lithuanians of Balti- more, established eighteen years ago, helped its members to acquire about fifteen hundred houses. The Results To show in figures the financial status of the Lithuanian Building and Loan Associations, I took the data of five typical associations: two of them of Chicago, Illinois, where at least fifteen such associations are operating. Total Assets of Five Associations ¥. Chicago, Tl. (Dee. 37,1922)... $329,738.76 (Inc. 1909) 2. Chicago, IN. (July 26, 1923). 664,385.99 (Inc. 1897) 8.i Baltimore, Md. (March 15, 1923)... _ i 618,114.16 (Inc. 1906) 4. Philadelphia, Pa. (Nov., 1928)... =... 803,401.58 (Inc. 1901) 5. Cleveland, Ohio (Feb. 29, 1924). 977,036.75 (Ine. 1909) The ordinary activities of the associations will be clear from the account of receipts and disbursements of the Baltimore Association, which can be regarded as the most typical one. Receipts (From Mar. 15, 1922, to Mar. 15, 1923) Cash in bank and on hand Mayeh 15, 1922. _._.____.__..._.._ $7,461.42 Amount received on free shoves... "on. 123,017.38 Paid inon account of morigages.. so 0 139,949.24 Interest fromiloany bio LL Lc Dia 8 lL 37,530.75 On expenses account on mortgaged property___________ 13,169.36 Entrance foes, books, ond fies... i. aod. 1,783.57 Borrowed money... Lo... nooo ooh 90,498.21 Repaid notes. receivable... _. — ." o.. 8,575.00 Rents from Association property CF ._... 1,162.25 Moral ey Cle $423,147.12 OTHER FORMS OF THE MOVEMENT 59 Disbursements Loans on morioages......cvve untae cre ee ee $116,704.43 Toansonifvee shares... ooo ne ee a 19,500.00 Withdrawals... hidden ina a 141,566.33 Notes payable (borrowed money)... __._____ 117,998.21 Morigaged propeviy expenses... ___ _.___°__. __! 6,485.69 Asggocliotion property expenses... _.._.__._._ 653.01 Balance m bank and on hand... ocr ee ee ee 7,833.84 Wotol.. . vnonis nnd mene tea LL $423,147.12 During the same year the association had thirty-nine thou- sand, three hundred fourteen dollars and twenty-six cents gross earnings. (Interest earned thirty-seven thousand, five hundred thirty dollars and seventy-five cents, and entrance fees, books and fines one thousand, seven hundred eighty-three and fifty-one cents). The association paid interest for loans and free shares______ $2,883.87 Salaries and compensations... oo 2,999.00 Sundries. Lo ad aaa Se a a 602.82 Total expenditures... wa. op le ws slau ung oiil oe $6,485.69 The net earnings during one year amounted to thirty-two thousand, eight hundred twenty-eight dollars and fifty-seven cents, of which twenty-nine thousand, eight hundred thirty- six dollars and twenty-six cents were paid in dividends, and two thousand, nine hundred ninety-two dollars and thirty-one cents remained as surplus. The total surplus of this associa- tion on March 15, 1923, amounted to eighteen thousand, one hundred thirty-one dollars and eighty-two cents. This Building Association of Baltimore and the Cleveland Savings & Loan Association have a comparatively wider scope of activities because they have introduced a deposit branch, paying for deposits five per cent interest in Cleveland, and six per cent in Baltimore, Md., thus approaching the type of the ordinary cooperative bank. How this deposit branch is helping to enlarge the scope of activities, is shown by the steady growth of the resources of the Lithuanian Savings and Loan Association of Cleveland, Ohio, which in this regard is the most typical one. 60 OTHER FORMS CF THE MOVEMENT Total resources on December 8d, 1914... .____ $42,956.73 5 ot et £e BBs a. Jeaan ns 50,613.57 £0 * 5 re RONG aE 86,859.83 ot 6 t ee AMT nn aa 104,517.13 ¥ 6 # oe AGES. ere 150,644.31 ’ 4 % tt ANS nan ba 308,467.47 5 v0 *é ve A920 a Sa 610,218.65 te “4 te £ ABR ssa baa 589,698.44 0 +e ot te $1009 Suid wes lieu 717,231.21 £4 re ge o LOT i eee 922,018.34 oe te “ Tebruary 29, 1924... nea. 977,036.75 In 1921 owing to business depression the association evi- dently experienced a little drawback. However, it survived the crisis very easily, and, probably, by 1924, it will be first among all Lithuanian local savings associations in United States, exceeding the million dollar mark. The Opinion of an American It will be worth while to hear the opinion regarding the Lithuanian Building and Loan Associations, expressed by an intelligent American observer. Mr. Huber J. Horan, Jr., attorney in Philadelphia, Pa., who for a period of twelve years acted in the capacity of solicitor of the Lithuanian Association which has been previously mentioned, writes me as follows: “The Association is twenty-four years old and to me the most remarkable achievement is that during the entire twenty- four years of its existence, it has never had to take over a property on which it loaned money and that during its entire history it has never had to foreclose against a Lithuanian. At least one of the officers of the Association, Anthony Linski, of Chester, has been connected with the Association since its inception. For the last ten or twelve years Mr. Linski has been the treasurer of the Association and during that entire period of time, Mr. Linski has never been short one dollar in his account. “The creation and maintenance of this association appears to me to be the most important achievement of the Lithuan- ians, as a body, in Philadelphia. They have got an association which the chief Banking Examiner of Pennsylvania told them last year, was one of the best associations in the State. They had made an unusually large profit, for a first mortgage as- OTHER FORMS OF THE MOVEMENT 61 sociation, for I might say that our mortgages are all first mortgages. “I am the only person connected with the Association in an official capacity, who is not a Lithuanian, either by birth or extraction. The fact that these men handled a couple of hun- dred thousand dollars every year for the last few years, be- longing to the people, without losing any money, is an achieve- ment of which they can well boast.” As to the general characteristics of the Lithuanian people, Mr. Horan says: “I do not think that there is any man in the city, and few in the country, who is not of Lithuanian birth or extraction, who has come in such intimate contact with the Lithuanians as myself and I can say, as a result of this association, extend- ing over ten or twelve years, that I have been representing them, that there has been, to the best of my knowledge, but one man or woman who ever came to me seeking a divorce. I have been in their homes and have seen their home life and a cleaner, more self-respecting people never existed. I have had the pleasure of dining with them informally and of attend- ing their public functions and have run the whole gamut of their lives from their christenings to their weddings and their funerals. To me this association has been one of real pleasure. “One of the things that has always impressed me with them has been the desire of the original immigrants, when they have achieved any measure of success, to give their children a good education; the result of it is that we have here in Philadelphia, the children of immigrants from Lithuania, many men who are members of the learned professions; law- yers, doctors, druggists and engineers. “One of the proud boasts of the Lithuanian Building and Loan Association has been the fact, that they have helped so many people to buy their homes. In all the years that I have represented the Association I do not believe that we have loaned money half a dozen times to men who are borrowing as an investment; it has practically always been the men who are buying a home in which to live. Another thing of which they boast is the fact that no one connected with the Association charges any commission for placing these loans. Our success has been due to the untiring efforts of the officers to give the 62 OTHER FORMS OF THE MOVEMENT stockholders the best that was in them without any thought of compensation.” Cooperative Halls Craving of Lithuanian immigrants for education and en- lightenment and for social-cultural recreation has found its best expression in the building of cooperative halls. An anal- ogous movement manifested itself in Lithuania even while that country was under Russian rule, when almost every parish or township endeavored to build the so-called “House of the People.” In the United States almost every Lithuanian parish has a hall for meetings and entertainments. For some time those parish halls sufficed for the cultural needs of the population. But since many of them were combination buildings under the same roof as the church, dances were prohibited, and so special associations were formed for building and maintaining musical and theatrical halls. This movement was especially fostered by the elements that were eager to escape from parish influence. Even many Catholic benefit societies joined these hall associations, and in fact furnished the first necessary capital for the purpose. As a result, there are today in Lithuanian colonies in the United States at least fifty such cooperative halls of different size and value according to the needs and capacities of the local communities. Their value varies from about thirty thou- sand dollars (in Lewiston, Me.), to about one hundred fifty thousand dollars (in Detroit, Mich). The shares are set us- ually at ten dollars or twenty-five dollars. A limit is put on the amount of shares possessed by one person (for example, five hundred dollars in Philadelphia). Every member, whether a society or an individual, has but one vote. The hall association sometimes is combined with some club organization (as in Philadelphia and Baltimore). In such a case the club is the first and best patron of the hall. The business success of these halls is assured, as they are almost always busy, occupied if not by the Lithuanians, then by some other nationalities of the vicinity. The Balti- more Cooperative Hall, established in 1921, and worth at least one hundred twenty-five thousand dollars, has an out- standing debt of about only thirty thousand dollars. The OTHER FORMS OF THE MOVEMENT 63 same situation exists in Philadelphia, where there are two Lithuanian Cooperative Halls, each having a value of over one hundred thousand dollars. The membership of such halls is usually quite numerous. (For example: Lithuanian Music Hall Association in Philadelphia has a membership of four hundred fifty, that of Baltimore is about six hundred.) The movement for such halls culminates at present in the endeavor of the Lithuanians of Chicago to build in 1924, a Lithuanian Auditorium at an estimated cost of three hundred thousand dollars. Cooperative Production This most difficult and far reaching form of the coop- erative movement has been exemplified by the Lithuanian workers in only two places, in Baltimore, Md., and in Bridgewater, Mass. The Lithuanian tailors of Baltimore, Md., organized two cooperative tailoring associations. Both had a small membership, consisting of about ten members each, and did not accomplish anything worth mentioning. There are four or more Lithuanian tailor shops, each em- ploying from one hundred to two hundred workers and making large profits for the owners. But the owners are organized in corporations not in cooperation. The daring attempt of Lithuanian workers in Bridgewater, Mass., is worthy of consideration and even of praise. About two hundred Lithuanian workers established a modern shoe factory of medium size and have been operating it for eight years in the midst of very adverse conditions. When I visited the factory in July, 1923, there were one hundred ten Lithuanians working, every one of them a part owner of the factory. The factory’s daily output was about forty dozen pairs of shoes of the best quality. Each share costs one hundred dollars. The upper limit for one man is one hundred shares. But the maximum amount held actually by one man reaches only thirty shares. There are now about seven hundred members. The purpose of “The Bridgewater Workers Cooperative Association” is stated in its By-Laws as follows: 64 OTHER FORMS OF THE MOVEMENT “To acquire real estate and erect buildings suitable for residential, industrial and manufactory purposes. “To found, support and conduct manufactory establishments for the purpose of manufacture and sale of boots and shoes, textile products and other goods and wares necessary for human benefit and use. “To found, support and conduct markets and stores for the purpose of purchase and sale of the various aforesaid products, goods and wares. “To found, support and conduct establishments of enjoyment and recreation.” The cooperative character of the Association is mani- fested by the following provision. ‘A stockholder shall have only one vote regardless of the amount of stock owned by him and shall vote personally, without privilege of proxy.” Nothing is mentioned in the constitution about the disposi- tion of profits. As a matter of fact neither interest nor dividends were paid by the Association up to 1923. During the two years previous to 1923 the society experienced a great crisis. But the second part of 1922 was brighter and the association entered the year 1923 with a small profit. Greater profits were made during the year 1923. The figures of the last two years show clearly the growing strength of the association: Receipts: 1922 1923 Sales of manufactured product_____ $363,739.52 $451,358.53 Various other incomes... o.oo... 10,089.02 9,389.68 Molal wo oie a a $373,828.54 $460,748.21 Disbursements: Forthematerialpaid. .............. $190,733.85 $248,048.07 Sslaviex Con nt Lie 102,211.61 126,202.93 Other expenditures... .......... 73,159.07 67,885.54 For: amortizotion. oo oa.nuaoan aus 5,772.67 7,344.45 otal halo $371,877.20 $499,480.99 Web profit on 0 oo. ~. 0. 1,951.84 11,267.22 The assets of the Association reached two hundred twenty- four thousand, eight hundred twelve dollars and forty-three cents. Among the liabilities are: share capital of $119,500 and net profit of $11,267.22. The greatest handicap to the Association is the want of an assured market for its prod- ucts. The association has to employ the same business OTHER FORMS OF THE MOVEMENT 65 methods as private manufacturers and corporations, viz., traveling salesmen, credit to its customers, credit from capitalistic banks, etc. The actual conditions of life and environment are obstacles to the cooperative ideal and force the management to employ the practices of the capi- talistic system. Conditions of the workers in the factory are about the same as in capitalistic enterprises. They work at the same kind of machines, receive the same wages, belong to the same “Boot & Shoe Workers’ Union.” However there is a remarkable difference in a spiritual and moral sense, which their very attitude and facial expression bespeak. The shop is their own creation and their property; they are the bosses. They meet every three months and decide policies. True, their experiment is an extremely difficult one. They are handicapped by the lack of cooperative and of general business knowledge, by the indifference of fellow workers, by the lack of corresponding consumers’ stores to take their manufactured product, by the lack of cooperative credit, ete. But they hold together and never abandon hope. Attempt to Unify the Movement In the spring of 1915 in Boston, Massachusetts, a handful of Lithuanian Catholic workers launched a new organiza- tion, “St. Joseph’s Lithuanian Roman Catholic Associa- tion of Labor.” It was a reaction to the very energetic and influential activities of Lithuanian socialists and com- munists. The inspiration and arguments were taken from the encyclicals of Pope Leo XIII and from the general move- ment of Christian Democracy in Europe. The purposes of the organization are defined in the con- stitution as follows: 1. To promote and strengthen the religion and morals of members. 2. To foster education and welfare, and to strengthen friendly social feelings of members. 3. To spread the cooperative movement (Rochdale type) among the Lithuanian workers. 4. To help Lithuanian workers to become useful citizens of the United States. : 66 OTHER FORMS OF THE MOVEMENT 5. To spread the knowledge of the Christian-Democratic Ideal among the Lithuanian workers in the United States. The Lithuanian Association of Labor publishes a tri- weekly paper, “Darbininkas” (“The Worker’) in Boston, which is one of the most influential periodicals in the Lith- uanian language in the United States. It has also published about thirty books and booklets, dealing with various phases of the labor problem. At the eighth annual convention in Newark, N. J., the association had a total membership of one thousand eight hundred eighty-three. The branches of this association are comparatively small groups of workers, united for the main purpose of studying the labor problem in the true light of Christian Doctrine. The movement favors unionism and the creation of a political work- er’s party. But its main energies are now directed towards the Rochdale Cooperative Movement. At the convention in Newark, 1923, the decision was made to insert a new word, “Cooperative,” in the name of the Association, and to dedi- cate its efforts to the main task of spreading cooperative knowledge and promoting the cooperative movement among the Lithuanian workers. It was decided to procure for the Association a new charter, by which the association itself with its property would become a cooperative printing es- tablishment with shares valued at five dollars and with a limitation of two hundred dollars for one member. Pamph- lets on the subject of cooperation are already being pub- lished and the movement is a very promising one. If the actual practice realizes the expressed purposes, we can ex- pect that this “Lithuanian Cooperative Association of Labor” will become a central bureau of exchange of co- operative ideas and activities of the Lithuanian immigrants. CHAPTER VII. General Characteristics of the Movement Rich Endowment and the Factors of Destruction The national character of the Lithuanian people is very happily adapted to the cooperative movement. Their strong conception of the fundamental equality of all men, their thrift- iness, their dexterity, their self-confidence and self-respect are evidently most conducive to the development of the cooperative spirit and the creation of cooperative institutions. The best proof of their appreciation of equal rights is the fact that in practically all their consumers’ societies, benefit societies, building and loan associations, hall associations and productive organizations, we find the provision made and strictly en- forced that all members shall have an equal voice. Even in their capitalistic corporations equal voting power is frequently established. : The thriftiness of Lithuanians is well known. At least ninety per cent of them have accumulated some savings, which are deposited in banks or invested in property. This is the reason why their building and loan associations have always been successful. Even where such associations have not been . organized (for instance in Detroit, Mich.) the majority of Lithuanian workers have acquired their own homes. Their innate honesty and dexterity was only to a slight degree modified by the centuries of servitude to Polish land- lords, and by the political yoke of a corrupt Russian bureau- cracy. The great majority remained sound and honest. In 1906 one of the national leaders, Father J. Tumas, made an experiment in Stakiai, Lithuania. He entered a verbal agree- ment with his parishioners by which he ordered for them several cars of fertilizer without requiring in advance any payment for it. The money was to be paid in nine months following the receiving of the fertilizer. The pastor announced in church that he trusted his parishioners. In due time prac- tically all the money was repaid. Lithuanians are rightly proud of their achievements in the field of economic and cultural organization here in the United States and of the important part taken by them in the re- [67] 68 GENERAL CHARACTERISTICS OF THE MOVEMENT construction of Lithuania. They have proved their ability to organize, to develop, and to be useful ; and as a result their self- confidence and self-respect are constantly increasing. On the other hand, we have to admit that when they reach a comparative prosperity, they tend to lose all the riches of their natural endowment of character, of which we have previously spoken. Industrial civilization proves to be their greatest moral enemy. In these conditions the idea of equality is continually denied and trampled upon in every day life. The practice of it is restricted to church services and to weak organizations of the working people. In this connection I recall a striking incident which took place in Brooklyn in 1916. At a meeting of the Lithuanian Development Corporation which was designed to develop Lithuania’s commerce and industry, a lively discussion took place on voting power. All the workers stood firmly for an equal vote for all shareholders, regardless of the number of individual shares held. But the physician, the priest, and the business man eloquently argued for giving preference to capital. Of course the opinion of the “intelligentsia” prevailed. Thriftiness is valued only by older people. The new gen- eration, born and reared here, retains only a dim reminiscence of the virtue of their fathers. They were taught by their parents to save; at home they had children’s banks. But the subsequent association with their school fellows or with the gamins of the street taught them different customs and imbued them with different ideals. The majority of Lithuanian youths, even after they come to adult age and are earning money, do not differ to any considerable degree from the youths of other nationalities. Like the average American type they unquestionably show many good qualities. But they also manifest the same weaknesses, lavishness and recklessness in spending, the pursuit of pleasure, thoughtlessness, and a want of appreciation of the higher things of life. Moreover the economic conditions and relations do not pro- mote honesty among the workers. The astounding inequalities in the distribution of wealth and income are far more clearly perceived and keenly felt by the common workers than by the students of political economy. The help of an “insidious agitator” is not needed at all. GENERAL CHARACTERISTICS OF THE MOVEMENT 69 The worker hears and reads about the enormous dividends of the corporations; he feels and resents his scanty wage and the high cost of living. No wonder that these circumstances often create a spirit of vindictiveness and selfishness; that it often leads to varied forms of dishonesty and even to gross injustice on the part of the workers. The self-confidence and self-respect of the Lithuanian workers have been dangerously wounded by their own money- sharks, organizers of Lithuanian Corporations, as well as by many American “successful business men,” who have robbed them of several millions of dollars. Such happenings dis- courage the enterprising spirit and destroy self-confidence. Helplessness in Face of Adversity With the Lithuanian Consumers’ Societies everything goes smoothly until some great adversity or obstacle appears. In such a case the members, instead of devoting all their energies to combating the obstacle, prefer to be on the safe side and not to risk more than that which they will eventually lose when the store liquidates. And the liquidation often takes place without any real necessity. In Hartford, Connecticut, a co- operative store had existed for four years (1917-1921). Dur- ing its last year, it had share capital of seven thousand three hundred twenty-five dollars and a turnover of seventy thou- sand two hundred seventy-six dollars and eight cents. It was successfully managed and it yielded profits. Without any good reason, the experienced and honest directors were discarded, a few self-appointed agitators took their place and in a few months ruined the store completely. The membership proved to be totally defenseless. In Brighton, Mass., the society has existed for fifteen years. It has been one of the most successful Lithuanian consumers’ societies. It erected a magnificent building for the stores, and a large hall for concerts and assemblies. It has always made substantial profits. But in 1922 a boy employee in the store accidentally cut off his fingers. His parents failed to reach a peaceful agreement with the board of directors as to the amount of compensation. Consequently, lawyers and the courts were resorted to, resulting in great expenditures for the society in settling accounts with the boy, the lawyers, and 70 GENERAL CHARACTERISTICS OF THE MOVEMENT the courts. These and many other failures point to one great common defect of all Lithuanian cooperative undertakings, viz., a great lack of education and competence, which makes the members helpless in the face of any great obstacle or adversity. Factionalism Another trait of character, which is a hindrance to the growth and strengthening of the cooperative movement, is the spirit of factionalism. It is due probably more to their essentially democratic tendencies and opposition to all cen- tralization than to lack of education. This spirit of inde- pendence and local self-government prevented for several decades a centralization of their benefit societies, and even the growth of many of them. Whenever a consumers’ society, or building and loan association, or benefit society attains to great numbers and significance, inevitable di- vision arrives; new groups are formed; new similar organ- izations are created. In Mahanoy City, Pa., a part of the membership, for some trivial reason, came to dislike the management of the store. They formed a new society and established a new store a few blocks away. In Amsterdam, N. Y., the only apparent reason for establishing a new society was that the former society had become “too rich” (it had accumulated a reserve of eight thousand dollars). A rival store was opened directly across the street. In Girardville, Pa., the society had a very ably-managed store. A few blocks away another group of Lithuanian miners formed a society, and opened another store, aided by the leader of the first society. Each group preferred to have its individual society and preserve its local independence in a territory comprising a few blocks. The same spirit of factionalism prevented the organization of wholesale houses in Massachusetts and in Schuykill County, Pennsylvania. Total Abandonment by Intellectuals This is one of the saddest features of the cooperative movement among the Lithuanians in the United States. What in Europe is the rule (the lively participation, col- laboration and leadership by professional people and edu- GENERAL CHARACTERISTICS OF THE MOVEMENT 71 cators) in the United States is rather the exception. We very rarely see here a lawyer, a physician or a priest on the board of directors in the consumers’ societies. Lith- uanian professionals, born of immigrant parents, are like- wise as a rule, not interested in the cooperative aspirations of their people. They did not get the touch of idealism and spirit of sacrifice in the schools. In the meantime, their financial, political, and social career is closely connected with the backers and promoters of the present economic system as it stands. Difficulty in Developing Cooperative Education The solution of the difficulties described in the preceding paragraphs suggests itself. If the Lithuanian immigrants could only transmit to their children, to the future law- yers, doctors, engineers and educated workers, cooperative ideals, the new generation would feel and act differently. Therefore the immigrants themselves should first acquire a better knowledge and understanding of the cooperative ideal and its practices. But in this endeavor they encounter tremendous difficulties. The sources of that knowledge are absent, or if they exist are inaccessible, because compara- tively few of them know enough English. Even in the Eng- lish language these sources are not abundant. In all the United States there is no popular school of cooperation. Some Universities are treating it briefly as a side issue. Public and private school systems completely ignore it. The Cooperative League of America and some labor unions do a great deal of good for the cooperative education of the masses; but none of these organizations help the older im- migrants, or publishes anything in their languages. The conclusion is obvious: the immigrants must help themselves and provide means for their cooperative education, after the example of the Finns, Jews and other immigrant peoples. The New Generation However, all the sacrifices of the immigrants for promot- ing cooperative education will not bear permanent fruits without the collaboration of the educative agencies in the 72 GENERAL CHARACTERISTICS OF THE MOVEMENT country. The best influence of parents would be almost frustrated by the overwhelming influence of the school and all the other surroundings of their lives. Among the younger generation of Lithuanians, even among the students of Uni- versities and colleges, there are but very few interested in social and economic problems in general, or in the coop- erative movement specifically. The vast majority are fully content with the hopes and prospects of making personal careers in the capitalistic system. Certain important and fundamental changes in the edu- cational system of the country must take place before we can reasonably expect that the work of the fathers and mothers will be imitated and augmented by their posterity. This aspect of the problem will be treated more ex- tensively in the next chapter. CHAPTER VIII Cooperation and Citizenship There are two sides to the problem of naturalizing immi- grants. One is formal, superficial, dealing with qualifications and formal declarations; another requires deeper insight into the psychology of the immigrant, and the preparation of his mind and heart. Two Kinds of Citizens There is nothing easier than to embrace formal citizenship of an adopted country: to acquire an elementary knowledge of the English language, to learn a few facts of American history, of the Constitution, of government, and to make the necessary declarations. Probably the majority of new citizens become naturalized only in this formal sense. In this way we could naturalize all the foreign colonies, en bloe, and Mr. Gompers would still not have the guarantee that these foreign colonies had ceased to be “hot-beds of disintegration and dis- loyalty.’ Mr. William H. Allen gives much credit to the newcomers for their knowledge of America. Says he: “It is one of the anomalies of our present patriotism that our newest immi- grants know more of our history, more of our patriotic songs, more of our national ideals than do children who can count two or six generations of American ancestry.”? But the mere knowledge of history, of songs, and of ideals is not sufficient for good citizenship. There are many immi- grants, who profess readily American ideals on every oc- casion, who wave the flags, but who care little either for the flag or the ideals. They give America everything excepting their hearts. They are led to believe that America does not need their hearts, but only an outward manifestation of Americanism. They promptly exchange their language and customs for new ones, but under the condition of being given better employment. 1 Cf. Mr. Gompers’ speech in Washington, D. C., in 1916 during the First Citizen- ship convention. This speech is quoted by Raymond F. Crist in the “Second year of the work of the Public Schools with the Bureau of Naturalization,” 1918, Pr 6. . . 2 “Universal Training for citizenship and Public Service” 1917, p. 40. [73] 74 COOPERATION AND CITIZENSHIP On the other hand, there are newly naturalized citizens who know, understand, believe, and love American ideals, whose faith in those ideals cannot be dimmed by the shadows of the dark side of American life. They become American citizens from conviction and from love of this land of liberty. They do not see the necessity of entirely forgetting their old language, of renouncing their affection for the land of their birth. They know that America does not require such un- natural and inhuman repudiation. Moreover they under- stand that it would be even detrimental to America, if they came here with empty hands, with no spiritual treasures of their own to enrich the life of their new country. This is the opinion of an experienced worker in the naturalization field, Mr. I. M. Berkey: “From the overflow of European civilization America may yet learn the higher values of spiritual and aesthetic life, and thus save its own people from the deadening blight of hoarded gold.”? Among other things Mr. Berkey advocates “the conservation and fusion of social and civic virtues from other lands.” The heart of the immigrant will be given to America, when he knows and understands American ideals, and when he sees that those ideals are not merely abstract words, but have practical value for life. American Ideals These are expressed fundamentally in the Declaration of Independence and the Constitution.? Immigrants, even common workers, have a fairly good 3 “Proceedings of First Citizenship Convention’ Washington, D. C., 1916, p. 41. 4+ Ibidem p. 43. 5 Declaration of Independence. “We hold these truths to be self-evident that all men are created equal; that they are endowed by the Creator with certain unalien- able rights; that among these are life, liberty, and the pursuit of happiness; that to secure these rights governments are instituted among men deriving their just powers from the consent of the governed.” The Constitution. “We, the people of the United States, in order to form a more perfect union, establish justice, insure domestic tranquillity, provide for the common defense, promote the general welfare, and secure the blessings of liberty to our- gives and our posterity, do ordain and establish this Constitution for the United ates.” . George Washington: “My first wish is to see the whole world in peace, and the inhabitants of it as one band of brothers, striving, who should contribute most to the happiness of Mankind.” (Federal Citizenship Textbook, part 1, p. 119.) “It will be worthy of a free, enlightened, and, at no distant period, a great nation, to give to mankind the magnanimous and too novel example of a people always guided by an exalted justice and benevolence.” (From Farewell Address.) Abraham Lincoln : “A new nation, conceived in liberty, and dedicated to the rroposition that all men are created equal * * that this nation, under God, shall have a new birth of freedom, and that government of the people, by the Deon, Tor the people, shall not perish from the earth.” (From the Gettysburg ress. COOPERATION AND CITIZENSHIP 75 notion of American Ideals. But the discrepancy between ideals and realities is understood and felt by the workers far better than by the middle or upper classes. Why? Be- cause they have to pay the difference. When they come to the citizenship school, they come with a fairly good notion of the essentials of citizenship. They learn there some de- tails about the forms of government and the English lan- guage. But in those citizenship schools, as they are con- ducted at present, they cannot acquire faith in American ideals. They know from their own experience how seldom those ideals are realized in practice. They do not see the way towards realization. The way is not pointed out to them in the citizenship schools. They become citizens only with the purpose of achieving the betterment of their indi- vidual conditions. They leave the school utterly unsocial- ized. They may attain a higher grade of individual wel- fare; they may make a career up to the boss-ship or grocery- ownership; but they will not contribute to American life anything permanent in the way of real progress and achievement of ideals. Incentives Used A. Writers. The great majority of recent writers on pre- paring immigrants for citizenship, have in mind the exist- ing civic and social institutions, and especially the Federal, State, municipal and county governments. They speak about various official and semi-official governmental activi- ties;® they express many beautiful thoughts on the family, citizenship, prohibition, the Red Cross, Scouts, thrift. Even the word, “cooperation,” is used very frequently.” There is much talk about cooperation in education, in industry, in government; cooperation in community life, even coopera- tion in corporations, or cooperation between the National Association of Manufacturers and the American Federation of Labor. Government is defined as ‘an organization to secure cooperation, or team work, on the part of the entire community” (A. W. Dunn). There is talk even about inter- national cooperation. But those writers do not mention, 6 This writer is not op- posed to foreign colonies of immigrants, for he writes: “The foreign colonies are necessary to the gradual and wholesome * By Hanson Hart Webster, pp. 122-123. =p, 41, COOPERATION AND CITIZENSHIP 79 change from Europeanism to Americanism.”!* He finds five policies practiced by Americans towards immigrants: 1. The policy of Laissez-faire, to await patiently the natural course of events; 2. The policy of reeducation of individuals, or Amer- icanization. 3. The insistence upon the recognition and per- petuation of the immigrants’ ethnic and political lines in the United States, this policy being fostered by American politicians to control the foreign vote. 4. Amalgamation, free intermarriage. 5. Socialization: normal, wholesome growth of cooperative relationship. Mr. Woellner evidently is inclined towards the socialization method. But whichever policy we choose as most favorable to our convictions, we all have to agree that a new, vital and power- ful motive should be added to all those previously used in order to make of immigrants good citizens of the United States. This new motive should appeal to their hearts and to their imagination ; should inspire them with new faith and hope in the future of America. Hope of Democracy This hope lies primarily in the rearrangement of economic relations according to the eternal principles of brotherly love, dignity of man, and responsibility. Since these principles were pronounced by Christ, humanity has never ceased to admire them, because they satisfy the innermost longings of the human heart. But the great majority of men in all ages have regarded them as too ideal and exalted for practical life. Only during two periods did the Christian world strive to apply them: when the first Christians brought all their possessions to the feet of the apostles; and in the organization of craft and merchant guilds in the medieval towns. Only after the Rochdale pioneers established the first model cooperative store with their mighty dreams for the future did mankind regain its faith in the necessity and practicability of Christ’s doctrine in economic relations. Rochdale principles and rules are almost a perfect embodiment of that doctrine. The Rochdale cooperative system has already a history of eighty years. Its steady growth in almost every country of the world, its great success, its bright prospects for the future, Bp. 33. 80 COOPERATION AND CITIZENSHIP have convinced even the pessimists that in that movement there is something really vital and promising. If the immigrants were convinced that plutocracy is not the last word in American life, that the government of the trusts, by the trusts, and for the trusts, is not a dogma of American life, that a real democracy is possible in this coun- try, then a new faith and hope, a new love for America would be the inevitable result. How then should we arouse that new faith and new hope not only among the foreign born, but among native Americans? The immigrants, surely, do not need any financial help from the Federal Government, or from the States or municipalities for their own cooperative undertakings. Subsidies would not help them permanently. On the contrary, they would be harm- ful ultimately. There is needed an introduction of the study of cooperation in all the schools, of its philosophy, history, methods and practices. There is needed the practice of cooperation by the youth in the schools, in their own student cooperative societies. There is needed the introduction of cooperation and co- operative bookkeeping in the curriculum of the evening schools of the country, where immigrants could acquire the necessary technical knowledge of cooperative activities. True there is before us a hard and long way before the economic and social reconstruction of the country on the Christian basis is realized. Some legislation, at least partly equalizing the economic chances of the working population with those of upper classes, would be of great help; but as far as human experience can indicate, there is not to be found anywhere a better scheme for real economic and social betterment and progress than the Rochdale coop- eration. The process is slow, but sure. Every successful coop- erative organization, be it a store, or a bank, or a farm, or a factory, or a house, is a real gain for Christianity in economics, and a real loss for the old system of profit and exploitation. It is a real step forward and undoubt- edly in the right direction. It is probably the only way to establish in the world a real democracy, because co- COOPERATION AND CITIZENSHIP 31 operation is an application of the fundamental principles of democracy; it is also the best practical school of democracy. Democracy can be built up by practice. It can not be im- posed, either by socialist doctrinaires or by benevolent financial potentates. If Rochdale cooperation should spread through the coun- try, revolutionists would lose ground, and the problem of Americanization would be solved automatically. Brotherly common action in the economic field by the working people of America would cause a perfect fusion of all races toward the common end: the liberation of mankind from the yoke of militarism and imperialism. The immigrants would sub- ordinate willingly their former national ideals to the greater and higher ideal, the universal brotherhood of man. Enlightened Voices In conclusion let us quote a few enlightened voices, that bespeak the American mind with a heart, longing for a better future. “The greatness of United States is to be measured not in its extent of territory, not in its wealth of iron mines, wheat fields, pine forests, and industrial plants, but in the character and spirit of its citizens.” ** “The true citizen will not look askance either at city or at country. For him any honest work will be honorable, and those who are toiling with their hands will not be merely economic factors of work, but human beings of like passions and possessed of the ‘certain unalienable rights,’ 2 2 “Will the Tea Pot Dome scandal show farmers, city working people and consumers that the prime-requisite of their having a government that will act for their benefit, is for them to secure cooperative control of their economic activities?” * “The best form of government is not that which does everything for us, but that which provides us with liberty and opportunity to do things for ourselves. The best things of life lie outside and beyond the domain of politics. Sport is more amusing, dancing is more de- lightful, music is more entrancing, poetry is more exalting, science is more engrossing, philosophy is more absorbing, love is worth all of them together, and religion gives to the whole world that seal of eternity without which all human life, all human interests, all human efforts are but ripples on the ocean of immensity.” ¥ 14 R. B. MacLean and H. E. Flynn, “Elementary Citizenship for Minnesota Schools” 1923. he : : hha Evans Hughes, “Conditions of Progress in Democratic Government,” 1H. A McGowan, in “America” for March 15, 1924. 17 M. D. Petre, “Democracy at the Crossroads” p. 54. 82 COOPERATION AND CITIZENSHIP “Herein let America pioneer. Our country seems destined in the Providence of God to be the melting place of all the peoples, to be the world’s experimental station in brotherhood, all of us learning that other nations are not barbarians, that other races are not inferior, that other faiths are not Godless.” ** “Americanism has its roots in the first phrases, the earlier phrases, of the Declaration of Independence. ‘All men are created equal and endowed with certain unalienable rights, among which are life, liberty and pursuit of happiness.” That is the North Star of Americanism. Whenever we steer away from that we are steering in the wrong direction. That is the great ideal of democracy. Jefferson formulated it, Lincoln repeated it. It was our North Star in those days; it is our North Star today. It is the supreme test of Americanism. “Any legislation or administration, any education that leads away from that ideal is un-American, no matter how valuable it may be in other respects. “America is, as Lincoln said, an experiment in popular government on a large scale, the largest in all human history, of the principle of the fatherhood of God and the brotherhood of man, of the principle of equality of men, not equality of men in this country merely, but an experiment in this country that may spread all over the world. Our government rests upon that universal principle. This is Ameri- canism, this is the American Ideal.” ™ “Every man on the face of the earth is by nature an American. “The march of civilization is the epic of man as a workingman, and that is the reason why labor must be held high always.” * J 20 18 Stephen S. Wise, Rabbi of the Free Synagogue, New York City, as quoted in the “Americanism and Citizenship” by Hanson Hart Webster, p. 122. » Louis F. Post, “Proceedings of First Citizenship Convention’ 1916, p. 14. 20 Campbell, Ibidem, D. 16. 21 Franklin K. Lane, in an address at New York, January 11, 1919. FINIS Bibliography Apams, EDWIN B.—“Community of Civics,” New York, Chic., 1920. ALLEN, WILLIAM H.—“Universal Training for Citizenship amd Public Service,” New York, 1917. *BENEDICTSEN, AGE MEYER—“Lithuania. The Awakening of a Nation,” Copenhagen, 1924. BRYCE, JAMES—“The American Commonwealth,” London, 1889. BRYCE, JAMES—“The Hindrances to Good Citizenship,” New Haven, Yale Un. Press, 1909. CLAXTON, P. P., U. S. Commissioner of Education—“Education for the Establishment of Democracy in the World,” Wash., D. C., Ptg. Off, 1919. Citizens’ Alliance, issued by Americanization Department Woman's Com- munity Council of National Defense Soc., Ill. Div., 1919. DAUKANTAS, SIMONAS—“Lietuvos Istorija,” Petropilie, 1850. DUNN, ARTHUR WILLIAM—“Civic Training to Service,” Wash., D. C., 1920. DUNN, ARTHUR WILLIAM—“Community Civics for City Schools,” Wash., D. (C.; 1921. “Federal Citizenship Textbook,” part 1, 1922, Wash., D. C. *GIDE, C.—“Consumers’ Cooperative Societies,” New York, 1922. *HARRISON, E. F.—“Lithuania: Past and Present,” London, 1922. HoBEN, ALLAN—“The Church-School of Citizenship,” Chicago, Ill., 1918. *HOLYOAKE, GEORGE JACOB— ‘History of the Rochdale Pioneers,” London, 1900. Howe, F. C.—“Denmark, a Cooperative Commonwealth,” 1921. HuGHES, CHARLES EvANs—“Conditions of Progress in Democratic Gov ernment,” New Haven, 1910. JoNas, JR—“Lietuviai Amerikoje,” Plymouth, Pa., 1899. KAUFMAN, H.—“Die Stellungnahme der Socialdemokratic zur Kon- sumgenossenschaftsbewegung,” 1911. P. K. (F. KeMmEsIs)—“Lietuvos. Vartotoju Draugijos,” Vilnius, 1912. KENKEL, JOSEPH B.—“The Cooperative Elevator Movement,” Wash, D. C., 1922. LANGDALE, JOHN W.—“Citizenship and Moral Reform,” New York, 1921. LAUKYS, JOKUBAS—“Budas Senowes Letuwiu Kalnienu ir Zamaitiu,” Petropilie, 1845. Lapp, JOHN A.—“The Catholic Citizen,” New York, 1921. MacLEAN, R. B,, and FLYNN, H. E—“Elementary Citizenship for Min- nesota Schools,” 1923. MORGAN, DEWITT S.—“Living and Working Together,” New York, 1923. MUELLER, E.—“Das Deutsche Genossenshaftswesen,” 1922. “The Naturalization Proceedings,” Philadelphia, 1915. Norus, T., and Ziuius, J—“Independence for the Lithuanian Nation,” Washington, D. C., 1918. *PARKER, FLORENCE EVELYN—‘“Consumers’ Cooperative Societies in the United States in 1920,” Washington, D. C., 1923. [83] 84 BIBLIOGRAPHY PoissoN, E.—“La Republique Cooperative,” 1920. PETRE, M. D.—“Democracy at the Cressroads,” London, 1918. “The Proceedings of the Congress of Constructive Patriotism,” Wash- ington, D. C. “The Proceedings of the First Citizenship Convention,” Washington, D. C., 1916, *“Pyblications of the Cooperative League of America,” New York, as advertised in the monthly magazine “Cooperation.” RYAN, JOHN A.—“Distributive Justice,” New York, 1919. Root, EL1IHU— Plain Issues of the War,” Loyalty Leaflet, No. 5, by the Committee on Public Information. SMITH, JOSEPH WARREN, and BUsH, A. M.—“Training for Citizenship,” Boston, 1902. SHERMAN, WALDO H.—“Civics. Studies in American Citizenship,” New York, 1905. “Syllabus of the Naturalization Law,” Washington Gov. Ptg. Off. SHOEMAKER, Louis P. K.—“American Citizenship and Some of Its Re- sponsibilities,” Wash., D. C., 1904. SONNICHSEN, A.—“Consumers’ Cooperation,” New York, 1919. Transactions, First (1918), Second (1920), and Third (1921), National Congresses of the Cooperative League, New York. TUCKER, D. C.—“The Ewolution of People’s Banks,” New York, 1922. “Universities and Public Service,” Proceedings of the National Confer- ence on Universities and Public Service,” New York, 1914. *WARBASSE, JAMES P.—“Cooperative Democracy,” New York, 1923. *WEBB, S. and B.—“The Consumers’ Cooperative Movement,” London, 1921. WATKINS, GORDON S.—“Introduction to the Study of Labor Problems,” New York, 1922. WATKINS, G. S.—“Cooperation—a Study in Constructive Economic Re- form,” Univ. of Ill. Bulletin. WEBSTER, HANSON HART—“Americanization and Citizenship,” Wash., BD. C., Gov. Pig. Off., 1928. WEEKS, ARAND D.—“The Psychology of Citizenship,” Chicago, Ill., 1917. WILLOUGHBY—“Rights and Duties of American Citizenship,” New York, 1910. WILSON, WooDROW— ‘War Message to the Farmer,” Comm. on Publ. Inf. WiLsoN, WoobRow—“Ways to Serve the Nation,” Comm. on Publ. Inf. WOELLNER, FREDERIC P.—“Education for Citizenship in a Democracy,’ 1923. *WooLr, L. S.—“Cooperation and the Future of Industry,” London, 1919. Woorr, L. S.—“Socialism and Cooperation,” London, 1921. MAGAZINES AND PERIODICALS “America,” Weekly, New York. *“Cooperation” and “The Cooperative Consumer,” Vols. I to IX (1914- 1923). BIBLIOGRAPHY 85 *“The International Cooperative Bulletin,” published in London by the International Cooperative Alliance. “Talka,” Weekly Journal of Cooperation, Kaunas, Lithuania. “Kalendorius,” Yearly Publication by the Lithuanian Asso. of Labor, So. Boston, Mass. “Darbininkas,” Tri-Weekly Cooperative Paper, pablish ed by the Lith. Asso. of L., So. Boston, Mass. Vita Rev. Fabian S. Kemesis was born in Vastapos, Alunta county, Lithuania, on February 25, 1880. He received his early education in the parish town Alunta, and his second- ary education in Palanga (1890-1895), and in Libau (Liepaja, 1895-1897). Entering the diocesan Seminary in Kaunas in August, 1897, he was ordained to the Holy Priest- hood on October 1, 1902, by the Right Reverend Gaspar Cirtautas, Bishop of Kaunas. From 1902 till 1911 he was assistant pastor in Tauragé, Subacius, Vabalninkas; from 1911 to 1913 the associate editor of the Lithuanian news- paper ‘“Viltis,” in Vilnius, capital of Lithuania. From the time of his ordination he took an active part in the coop- erative movement in Lithuania. Invited by the American Association of Lithuanian priests, he came to the United States of America in 1913 to accept a position as editor of “Draugas,” Chicago, Illinois, and afterwards “Darbininkas,” Boston, Massachusetts. During 1917 and 1918 he was a student of the Loyola School of Sociology, Chicago, Illinois, and during the fol- lowing three years was pastor of St. George’s Church, Detroit, Michigan. In the years 1922, 1923 and 1924 he pursued studies in Economics, Sociology and Education in the Graduate School of Philosophy of the Catholic Uni- versity of America. In Economics (his major subject) he followed courses in Industrial Ethics under Reverend Doctor John A. Ryan, and Current Economic Problems under Doc- tor Frank O’Hara; in Sociology: courses in General Soci- ology under Reverend Doctor William J. Kerby, in Social Origins under Reverend Doctor John M. Cooper, and in Social Psychology under Right Rev. Doctor Edward A. Pace; in Education: courses in Philosophy of Education under Reverend Doctor Edward B. Jordan, Psychology of Education under Reverend Leo McVay, and in Methods of Education, and in Educational Administration and Manage- ment under Reverend Doctor George Johnson. He also pursued courses in Educational Religion under Reverend Doctor Roderick Mac Eachen in the School of Sacred The- ology, receiving his degree of Doctor of Philosophy on the completion of his courses in 1924. [86]