The labor journal. [volume] (Everett, Wash.) 1909-1976, 1922-02-17
READ THE HANDWRITING ON WALL
AND BLOCK COOPERATIVE STORE
Roger BabsOn Warns Wealthy Clients Now Is
the Time To Do 1t Before Movement
Gets Headway
MANY EUROPEAN COUNTRIES HAVE SUCCESSFUL CO.
OPERATIVE ENTERPRISES IN OPERATION; WORK
ERS REAPING THE BENEFITS-WHY NOT
THE UNITED STATES
ISSUED by Cooperative League of
America.)

ISSUED by Cooperative League of
America.)
In a bulletin issued appropriately
enough on the 18th of December,
Roger Babson calls the attention of
his clients to the handwriting on the
wall which threatens "inestimable
damage to the existing system"
Mr.. Babson, it should be stated, is
sues a report "for merchants, bank
ers and investors" giving dispassion-
ate advice on financial conditions for
the benefit of his wealthy clients.
Speaking as a friendly adviser to
the merchants, bankers and investors,
Mr.. Babson warns in emphatic, bald
face type:
Clients should read the handwrit-
ing on the wall. The only possible
way to block the cooperative store
is to make it unnecessary. Now is
the time to do it before the move
ment gets Roadway"
But lest we be accused of lifting
statements from their context, here
is the warning, just as it is given
by Mr.. Babson. bold-face and all:
Cooperative Buying
"Clients should not miss the signif-
icance of President Harding's warn
ing regarding cooperative marketing.
So far in the readiustment, produc-
ers have had to cut prices most be-
cause competition struck them hard
est. Distributors have been less af-
fected. While the producers have
been compelled to readiust their over
head costs to fit prices, distributors,
wholesalers, iobbers and retailers
have been able to make prices fit
overhead costs. The result is a bus
iness-killing spread between prices
which the producer gets for his goods
and the prices which the consumer
must pay. Popular sentiment de-
mands that this be corrected. The
cooperative system of buying, which
has swept England and other Euro
pean countries offers a tempting So
luton.
"The dangerous phase of this sit
uation is that if United States dis
tributors allow it to start they can
never check the movement until in
estimable damage has been done to
the existing system. Clients should
read the handwriting on the wall.
The only possible way to block the
cooperative store is to make it I'M
necessary. Now is the time to do it,
before the movement gets haed-
way. This can be done only by cut
ting down overhead expenses and
selling on as close a margin as your
business will stand. Remember that
high costs do not justify high prices,
but simply open the way fol- compe-
tition"
Mr.. Babson speaks from knowl-
edge. He knows the extent of prof
iteering in America, and he knows
what cooperation has done in Eur
ope to check profiteering. Mr.. Bah
son is not indulging in mere rhetoric
when he says that the cooperative
system of buying has swept England
and other European countries.
The fact is that staring with a
single store in little town in Eng
land in 1874, the Cooperative Con-
sumers' Movement has spread until
now it comprises 4,500,000 heads of
families in Great Britain. supplying
40 per cent of the population of
that land with all their wants. The
membership of the consumers coop
eratives in Great Britain is growing