Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1906-04-09

pamphlet form a short monograph
upon the subject of Cooperative Stores
in the United States. This review Of
the history and present status OF CO.
operative distribution is a portion OF
the bureaus forthcoming biennial
report and contains the results Of an
extensive investigation of this sub
ject. Much valuable material and
statistics are presented and the bulle-
tin will doubtless be Of great assist
ance to those interested in cooper
ative enterprises.
The early history of cooperative
buying both in England and in the
United States is discussed with rela-
ton to local and general economic con-
ditions promoting the establishment
of such institutions and as affecting
their general development. The ROch-
dale Stores, the Civil Service, Navy
and Army Societies of England and
American College Cooperative asso-
Citations are described and treated in
their proper light.
A review of the growth of cooper
alive institutions in America lends It
self to a ready division into six peri
DDS, during each of which the success
or failure of the movement is cOns1d-
cred at length. These periods may be
summarized as follows:
The first period precedes 1859 Th3
earliest cooperative society in TIE
United States was founded in 1881,
and was one of the many district la
Dor associations which sprang up dur
ing the early part of the 18th cen
tury, and which succeeded in estab-
fishing several cooperative stores IN
the New England states Previous
10 this date secret societies had ex-
listed which secured for their mem
beers trade discounts, but the principle
hff cooperation was not introduced by
them until after 1916, when an organ
ization was formed whose successor
x few years later was the New Eng
land Protective union, which in 1851
consisted of 100 divisions with a mem
bership of 5,lO9. These early stores
sold as a rule only to members am
seldom gave credit. No attempt was
made to secure large profits, the stock
holders being content with a per
cent dividend upon their shares.
EARLY Efforts Wrecked.
The career of these stores which Up
to this time had been quite success
fud was practically ended during the
civil war, their downfall being occa-
stoned by conditions growing out of
the war. The store managers were
unframed to the ways of the business
world, they did not know the neces-
sity Of accommodating a surplus, goods
were sold upon too close a margi1,
which together with the opposition
from retail merchants, all formed OBJ
structions upon which the early CO..
operative efforts were wrecked.
During the second period, from
1S60-1S75, several unsuccessful efforts
were made to revive the system OF
stores by the Boston Labor Reform
association, by some Philadelphia
merchants using the ROchdale rules
and bylaws, and by the National La
Dor union. No great progress was
made until in 1867 when the Patrons
of Husbandry or grangers were organ
lied. One object of this association
as expressed in a circular letter, was
TO secure to its members the advan
tages of cooperation in all things
which affected their interests. The
growth of the organization was enorm
Gus over $4,000 branches being estab
hshed with six months in 1878. Pur
chases for all the local oranges were
made by astate purchasing agent in
each state, who, through the large bust
ness thus controlled, purchased only in
car load lots, giving to each member
substantial dividends often exceeding
25 per cent, upon the more useful ar
ticles of the farm. Purchases by 2
state agent frequently reached $1,000.
600 in single year.
Oranges Fercely Attacked.
With trade concentrated by the
oranges, and bankruptcy facing the
middlemen, fierce attack was made
upon the organizations Retail deal
ers began to extend credit and to cul
prices, in many instances selling at d
loss. Enterprising business men il
large centeTs took advantage of the
existing strife and advertised their
houses as grange supply stores. The
present Montgomery-Ward Co. began
in this manner. But these methods
together with popular distrust and an
industrial depression, the oranges
were sos weakened that the state
agent purchasing system was abol
ished.
After the panic of 1873 had subsidized
the agitation for cooperative store:
again become very strong, the move
mant baino diraetnd ny tha SovariCus