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Consumers’ Cooperatives: Operations in 1947 A Report on Membership, Business, and Operating Results Bulletin No. 948 UNITED STATES DEPARTMENT OF LABOR BUREAU OF LABOR STATISTICS Consumers’ Cooperatives: Operations in 1947 Bulletin No. 948 UNITED STATES DEPARTMENT OF LABOR Maurice J. Tobin, Secretary BUREAU OF LABOR STATISTICS Ewan Clague, Commissioner For sale by the Superintendent o f Documents, U. S. Government Printing Office, W ashington 25, D . C. - Price 20 cents Letter of Transmittal United States D epartment op L abor* B ureau op L abor Statistics, Washington, D. C., December 16, 1948. The Secretary of Labor: I have the honor to transmit herewith the Bureau’s annual report on the activities of consumers’ cooperatives in 1947. The report contains general estimates of membership and business of the various types of associations, local and federated, and detailed data on the operations of the central organizations which provide goods and services to the local associations and carry on manufactures of numerous kinds. A feature of this report is the information— on relations with labor unions and between rural and urban cooperatives— obtained in a special study made by the Bureau. The report was prepared by Florence E. Parker, of the Bureau’s Office of Program Planning. E wan C lague, Commissioner. Hon. M aurice J. T obin , Secretary of Labor• <m ) Contents Page Progress in 1947_________________________________________________________________________ Operations of local associations----------------------------------------------------------------------------------------Leading consumers’ cooperatives in 1947_____________________________________________ Trend of development, 1941-47____________________________________________ Results of study of nonfarm cooperatives____________________________________________ Age of associations______________________________________________________________ Membership____________________________________________________________________ Business and operating results___________________________________________________ Financial status______________________________________________________________ Cooperative production_______________________________________________________ Education and publicity--------------------------------------------------------------------------------Working conditions and wages________________________________________________ Union labor and nonfarm cooperatives____________________________________________ Union assistance in organizing________________________________________________ Labor interest and support______________________________________________________ Unionists in membership and in directorship____________________________________ Rural-urban cooperation____________________________________________________________ Cooperation within cooperatives________________________________________________ Cooperation between cooperatives_______________________________________________ Combined trading and membership_____________________________________________ Central organizations____ _______________________________________________________________ Wholesale associations______________________________________________________________ Membership___ ____________________________________ Distributive facilities___________________________________________________________ Distributive operations_________________________________________________________ Capital and resources___________________________________________________________ Services of central cooperatives______________________________________________________ Expansion of services by wholesales_____________________________________________ Expansion of services by federations____________________________________________ Service business________________________________________________________________ Resources of service federations_________________________________________________ Production by central cooperatives__________________________________________________ Expansion of facilities by wholesales____________________________________________ Expansion of facilities by federations____________________________________________ Goods produced________________________________________________________________ Resources of productive federations_____________________________________________ Employment and earnings in central cooperatives____________________________________ (IV) 1 3 3 4 4 4 5 6 6 7 7 7 8 9 10 11 12 12 13 14 16 16 16 17 19 20 20 20 20 20 22 22 23 24 25 25 Operations o f Consumers’ Cooperatives in 1947 Progress in 1947 and 24 of these wholesales were, in turn, members of National Cooperatives, Inc. Among the commercial federations, the regional and district wholesales had a distributive and service business of nearly 261 million dollars (compared with 222 millions in 1946). Earnings o f the reporting regional wholesales, which exceeded 15 million dollars, were nearly 30 per cent above those of 1946; in 1946, however, earnings had been nearly 88 percent above those of 1945. Combined earnings for the group were reduced considerably by the losses of a few associ ations. As among the retail associations, some of the wholesales—particularly those which deal mainly in groceries— found the going hard in 194*7. Two of the three wholesales dealing in groceries sustained a loss on the year’s operations and in two other wholesales the grocery departments ended the year “ in the red.” Patronage refunds to the affiliated member associations totaled nearly 12% million dollars— or nearly half again as much as in 14)46. The year 1947 saw another sizable increase in value of goods produced by the wholesales and productive federations, reaching nearly 128K million dollars as compared with 95K millions in the previous year. Over 60 percent of this product came from plants operated by the regional whole sales, and somewhat over a third from those of the productive federations. Estimates of membership and business of con sumers’ cooperatives in 1947 are shown in table 1. It should be emphasized that this table does not indicate the volume of cooperative business done in any particular line, as the table classifies the associations according to their main line o f busi ness. Thus, an association running a store, and also handling petroleum products, is classified as a “ store association” if the main volume of its business is done in the store. Likewise, many associations operate cold-storage or other depart ments, secondary to other lines of business. An all-time high in both membership and business was reached by the consumers’ coopera tive movement in the United States in 1947, despite the number of dissolutions either during the year or after the end of the year’s operations. On the other hand, many new associations were formed during 1947. The combined business of the retail distributive cooperatives exceeded a billion dollars and that of the local service associa tions was over 25% millions. The stores, as a group, showed increases in volume of business exceeding those of any previous year for which the Bureau of Labor Statistics has records. Operating results, however, were less satisfactory than in 1946. Among the reporting store associations, over a fourth (28.5 percent) sustained a loss on the year’s operations, as com pared with 9.1 percent in 1946; among those which were “ in the black,” over haIf had smaller earnings than in 1946. For the petroleum associa tions, increases in both membership and business were smaller than for the stores, but operating results were better. Less than 3 percent showed losses on the year’s business and, of those showing earnings, well over half had earnings greater than in 1946. For both types of associations, earnings included patronage refunds on purchases made from wholesale associations and, for some retail associations, such refunds were all that kept them on the earnings side of the ledger. Difficult opera tions were reflected in an unusually large number of dissolutions of associations in 1947 and early 1948. More than 4,200 retail associations were affili ated with regional wholesales at the end of 1947 1 1 It should be pointed out that this figure includes some duplication (where local associations are members of more than one regional wholesale). Also, many of these affiliated retail associations are purely farm-supply associ ations, not “ consumer” associations (i. e., do not handle consumer goods); such associations are not covered in table 1. 1 2 1.— Estimated membership and business of con sumers9 cooperatives in 1947, by type of association T able Type of association Total number of asso ciations Number of members Amount of business Local associations Retail distributive................................ Stores and buying clubs................ Petroleum associations.................. Other i............................................ Service.................................................. Rooms and/or meals...................... Housing.......................................... Medical and/or hospital care: On contract. ........................... Own facilities........................... Burial:8 Complete funeral..................... Caskets only............................ Burial on contract................... Cold storage4................................. Other8............................................ Electric light and power •.................... Telephone (mutual and cooperative)— Credit unions8..................................... Insurance associations.......................... 3,985 2,500 1,400 85 793 200 125 100,000 65,000 1,800,000 6,000,000 30,000 36 1,000 3 2,000 4 106,750 180 17,000 110 1,029 72,030,655 675,000 33,000 3,339,859 9,040 2,000 •11,200,000 355,000 6,000 41,500 7,000,000 1,200,000 113,704,076 10,000,000 455,833,601 78207,000,000 60 75 Member associations Federations11 Wholesales: Interregional.................................. Regional......................................... District........................................... Service................................................... Productive........................... ............... 2,208,000 $1,050,300,000 1,250,000 715,000,000 925,000 320,000,000 33,000 15,300,000 356,750 25,502,500 25,000 6,100,000 10,000 *3,000,000 1 24 11 18 16 24 4,220 171 1,405 386 10,581,140 “ 255,215,750 » 5,663,841 1,782,062 53,740,713 I Such as consumers’ dairies, creameries, bakeries, fuel yards, lumber yards, etc. * Gross income. * Local associations only; excludes associations of federated type (which are included with service federations) and funeral departments of store associations. 4 Excludes cold-storage departments of other types of associations. 4 Such as water supply, cleaning and dyeing, recreation, printing and publishing, nursery schools, etc. 4 Data furnished by Rural Electrification Administration; figures include 36 refrigeration associations. 7 Number of patrons. 8 Actual figures, not estimates. * Number of policyholders. 10 Premium income. II Figures here given do not agree in all cases with those given in table 8, as they include an allowance for nonreporting associations. “ Includes wholesale distributive, retail distributive, and service business The Bureau has recorded only six creameries owned and operated as consumers' cooperatives. These are in Colorado (1), Michigan (1), Minne sota (1), New York (1), and Oregon (2). One of these, the Franklin Cooperative Creamery Asso ciation, Minneapolis, was started in 1920 by striking milk-wagon drivers when they were locked out. This association recently became a member of the Cooperative League of the USA. It is the oldest of the creamery associations, but one of the Oregon cooperatives dates from 1927, and the other from 1931. The others mentioned were formed during or immediately preceding World War II. Five distributive associations have, in addition, a dairy department as does also one of the cooperative federations (Range Cooperative Federation, Virginia, M inn.). Several cooperative burial associations have discontinued operations, and few have been started since the beginning of the war. A t the end of 1947, 36 associations were operating their own facilities, and providing complete funerals; 7 others sold funeral supplies only (mainly caskets) or provided embalming and interment on contract with a local undertaker. The funeral associations are concentrated in the Midwest States of Illinois (3), Iowa (10), Minnesota (17), South Dakota (7), and Wisconsin (2), with a single association each in Indiana, Oklahoma, Oregon, and Pennsylvania. (Another association has been formed in Wis consin, but has been deterred from starting busi ness by high building costs.) In addition, funeral service is provided in some cases through a service federation, the members of which are retail coop eratives or other types of local associations; the service is thus available to the membership of these associations. Examples in Minnesota are North land Co-op M ortuary (Cloquet), and Range Cooperative Federation, the latter being a dis tributive, service, and productive federation with a mortuary department which has funeral homes at Hibbing and Virginia. In Wisconsin, Valley Cooperative Services (Appleton), is a burial coop erative of the federated type. In recent years, some of the retail store associations have opened funeral departments. Such are found in Minne sota (3 associations), North Dakota (1 associa tion), and Wisconsin (3 associations). Three other retail store associations— one in Montana and two in North Dakota—handle caskets. It is probable that the volume of business done by consumers' cooperatives in burials and in the dis tribution of funeral supplies totaled about $558,500 in 1947. A few local distributive associations and one cooperative wholesale (Central Cooperative Wholesale, Superior, W is.), each operate a bakery as one department of the business. O f the inde pendent associations doing only a bakery business, however, only three remain of the 20-odd that were in operation during the decade between 1910 and 1920. One of these survivors dates from 1905, one from 1916, and one from 1917. M ost of the defunct associations were started during or shortly after W orld War I. A t least 14 were of Jewish membership and devoted themselves to the manu facture and distribution of Jewish breads. Others had Polish, Lithuanian, Italian, or Scandinavian membership. M ost of the associations had a highly developed social outlook, were closely asso- 3 dated with the organized labor movement, and gave finandal support whenever local workers were on strike. Operations o f Local Associations Sales o f reporting cooperatives in 1947 averaged $367,015 per association for the stores and $252,880 for the petroleum associations. Net earnings for the stores with earnings averaged 4.1 percent on total business done; losses for those which could not make ends meet averaged 3.2 percent o f sales. (The corresponding figures for 1946 were 5.5 and 3.4 percent.) For the oil associations, earnings averaged 7.9 percent (10.1 percent in 1946) and losses 2.5 percent (5.0 per cent in 1946). Changes in N et Earnings Retail Store Cooperatives Percent 20 15 10 5 0 Petroleum Cooperatives 5 WA//A v m » I . » V7A O 1942 1943 1944 1945 1946 1947 UNITED STATES DEPARTMENT O f LABOR BUREAU OF LABOR STATISTICS Information on patronage refunds returned bylocal associations to their members is available for 284 associations (269 distributive associations and 15 service associations). For the whole group these totaled $3,885,757. For the store associa tions the patronage refunds averaged 3.5 percent on sales, for the petroleum associations 5.5 per cent, and for the service associations 4.5 percent. Although many new associations were formed in 1947, the number o f dissolutions, either during the year or after the end of the year’s operations, was larger than in any year since the early 1920’s. This included a number of associations which, even though volume of business in 1947 had in creased over that in 1946, had ended the year with a loss. Numerous factors—increased operating expense ratios, losses on inventory, poor manage ment, losses from uncollectible debts, etc.— were involved. The nonfarm associations, particu larly those dealing only in groceries, were hardest hit. The grocery business, with severe competi tion and low margins, is becoming increasingly difficult to operate successfully unless there is a high operating efficiency and a good volume of business. Reports received since the beginning of 1948 indicate that dissolutions are continuing. Other associations report that their grocery departments have been closed or that such a step is under consideration. The petroleum business has always been one of wider margins and greater simplicity o f operation, as compared with the stores. The urban petro leum associations were hard hit by the drastic controls during the war, and some went out of business as a result. However, since the petro leum associations in this country are mainly of farmer membership—and thus wers able to obtain supplies— the whole group of petroleum associations (as shown in table 3) not only main tained volume of business, but even increased it during the war. The year 1947 showed an in crease in business second only to that of 1945, the year the war ended. On the whole, 1947 opera tions for both the petroleum associations and the stores produced smaller earnings and greater losses than in 1946. Leading Consumers’ Cooperatives in 1947 A larger number o f consumers’ cooperative associations than ever before were in the milliondollar class in 1947. Altogether, 10 associations o f urban or rural-urban membership had a volume o f business exceeding a million dollars and 10 had 3,000 members or more. Table 2 shows the membership and business of these leading con sumers’ cooperatives. 4 T able 2.— Leading consumers’ cooperatives in 1947 Type and name of association R e S I llt S O f S t u d y O f N o n f a r m C o o p e r a t i v e s Mem Amount ber of busi ship ness, 1947 Urban associations Group Health Association, Washington, D. O................. U,400 Rochdale Cooperative, Washington, D. C.3..................... 3,342 Cooperative Trading, Waukegan, 111................................ Greenbelt Consumers Services, Greenbelt, M d ................ 2,611 United Cooperative Society, Fitchburg, Mass................. 2,640 United Cooperative Society, Maynard, Mass.................. 2,667 Franklin Cooperative Creamery, Minneapolis, Minn___ 3,300 Cooperative Services, St. Paul, Minn............................... 3,600 Consumers Cooperative Services, New York, N. Y ........ 8,291 New Cooperative Co., Dillonvale, Ohio........................... 2,110 University of Oregon Cooperative Association, Eugene, Oreg.................................................................................. 3,186 Shipbuilders Cooperative, Newport News, Va................ 3,190 University Book Store, Seattle, Wash.............................. (») 6,000 $443,738 2,761.468 1,726,667 1,024,865 1,390,384 5,978,170 790,670 1,990,445 1,922,482 392,606 (<) 1,715,546 Rural-urban associations Cloquet Cooperative Society. Cloquet, M inn.—. ............ Consumer-Farmer Milk Cooperative, Long Island City, N. Y ....................................................................... 3,914 1,702,448 6,431 1,863,641 * At the end of 1947, this association was serving 13,692 “ participants” (i. e., members and their dependents). 3 Does not include companion association in Arlington, Va., with 728 mem bers and a business of $377,063 for 9 months. 3 9 months (fiscal year changed in 1947). * This association did not go into operation until early in 1948. 3 No data. Trend of Development, 1941-47 Both store and petroleum associations continued in 1947 the upward trend in membership and business that has been evidenced since 1941 (table 3), but for the oil cooperatives this was at a slower rate than for the stores. The increasingly difficult conditions faced by the store associations since the end of the war are reflected in the rising proportions of those with losses and of those which (although still showing earnings) had smaller profits than in the preceding year. A special study of nonfarm cooperatives made in 1948 covers the 1947 operations of such associa tions. About 600 cooperatives of various types, known to be urban associations (or rural associa tions in which farmers were a minority) were cir cularized. Usable reports were received from 347 associations (286 distributive and 61 service). The reporting associations, which included all the largest nonfarm cooperatives in the United States, had nearly 169,000 members, assets exceed ing 21 million dollars, and a combined business for 1947 amounting to almost 59 million dollars. They ranged in membership from about 25 to nearly 8,300, and in volume of business from less than $10,000 per year to almost $6,000,000. Enterprises of all degrees of success were in cluded, ranging from those conspicuously success ful to a few which had encountered such difficulties that their members voted to liquidate the enter prise in 1948. Age of Associations The oldest of the 233 nonfarm distributive asso ciations reporting as to age was a 43-year-old store cooperative formed in 1905. Nine (3.9 percent) were started before 1910; 23 (9.9 percent) began their existence between 1911 and 1919; 20 (8.6 percent) between 1920 and 1929; 82 (35.2 percent) between 1930 and 1939; and 99 (42.5 percent) between 1940 and 1948. The average o f the whole reporting group was slightly over 14 years. T able 3.— Trend of operations of retail store and petroleum cooperatives, 1942-4? 1 Petroleum associations Store associations Item 1947 Membership: Percent of increase over preceding year.................. Percent reportingincrease over preceding year............................. Decrease from preceding year........................... Amount of business: Percent of increase over preceding year.................. Percent reportingincrease over preceding year............................. Decrease from preceding year........................... Net earnings: Percent going from— Gain to lftss . T-insf? to gain __ ________________________ Percent reporting— Loss in both current and preceding years------Increase in gain over preceding year................ Decrease in gain from preceding year............... 1946 1945 1943 1942 1947 1946 1945 1944 1943 1942 13.4 11.6 15.9 25.6 13.6 8.3 9.6 10.8 11.4 14.4 23.9 9.5 80.9 19.1 72.8 27.2 82.9 17.1 98.8 1.2 77.4 22.7 75.5 24.5 80.2 19.8 77.5 22.5 78.2 21.8 79.9 20.1 74.5 25.5 73.8 26.2 39.9 30.8 It 5 19.6 28.8 30.8 26.3 27.9 10.7 22.6 19.1 13.6 80.8 19.2 90.5 9.5 72.9 27.1 80.3 19.7 84.7 15.3 90.8 9.2 89.7 10.3 94.1 5.9 86.3 13.7 89.4 10.6 71.5 28.5 78.9 21.1 19.4 3.7 5.8 4.2 10.7 6.4 4.2 6.8 5.3 5.4 2.4 1.0 .3 2.0 .9 .7 .4 49 9.1 30.8 37.0 3.3 8.4 49.4 27.2 2.0 62.3 25.1 1.9 51.7 34.3 2.2 .5 60.3 37.5 64.7 31.7 9.1 62.5 19.2 3 Based on identical associations reporting for both current and preceding year. 1944 69.5 17.9 55.3 40.8 88.0 11.1 .9 78.9 20.3 .5 74.5 23.3 L8 L2 .4 5 Membership A number of the campus cooperative stores serve only employees and students at the college or uni versity, and a few of these limit their membership to the veteran students. In the campus coopera tive rooming and boarding houses, not only is membership limited to persons living or eating at the cooperative, but also the cooperatives usually provide for discontinuance of membership of those who prove uncongenial or who do not fit into the group. About a sixth of the cooperatives reporting on membership had fewer than 100 members. M ost common were those with between 100 and 250 members (26.7 percent) and between 250 and 500 members (24.4 percent). Another sixth had over 500 but fewer than 750 members. Only 13.4 per cent had 1,000 members or more, and only 3.2 percent 3,000 members or more. The average was 532 for the stores and 1,137 for the petroleum associations. To an inquiry as to main occupational groups in their membership, many associations replied either that there were no outstanding groups, that the cooperative membership was a miscellany of the entire community, or that they were not in formed on this point. Table 4 shows the occupa tions which constituted a significant part of the membership in the reporting associations. The figures should not be totaled, as some associations reported several occupational groups. W ith very few exceptions, the reporting dis tributive associations practice the principle of open membership and admit anyone who can make use of the services of the cooperative. Among the store associations, nine go somewhat farther and, in order to insure that the member shall be an active patron, admit only persons residing in the vicinity served by the cooperative. Two associa tions refuse a vote to members under 21 years of age, although the age of admission is 18 years. Three refuse to admit private dealers in businesses that compete with the cooperative. In two Italian associations, the applicant must be of Italian descent, and in one of these, he must be a descendant of a native of the Lombardy region of Italy. Two associations have occupational restric tions; one admits only railroad workers, and the other only owners of fishing vessels. In one cooperative, the applicant must be a member of a “ bona fide labor organization” or, if not, must show that he is not eligible for membership in such an organization. Three associations restrict member ship to residents of the housing project in which the cooperative is situated. One cooperative admits only “ persons believing in the democratic form of government” and another (a coal miners’ association) accepts United States citizens only. T able 4.— Predominant occupational groups in nonfarm cooperatives, 1947 Occupational group Automobile workers Bakery workers _ Building-trades workers: Carpenters Other erafts___ Bus and/or truck drivers Electrical workers _ Employees of single plant or em ployer... Factory or mill workers: Clothing factory___________________ Paper mill Sawmill. _ Shoe factory . Textile mill. ___ _ _ Wood-products factory-- _ _ Type of plant not specified................. Earmers Fishermen and oystermen......................... 824243°—49---- 2 Num ber of associa tions re porting 2 1 7 4 3 4 3 2 3 3 1 6 1 11 40 3 Num ber of associa tions re porting Occupational group Foundry and machine-shop trades______ Housewives _ ..... Laborers: Beet workers. .............. Farm laborers, general _ Skilled laborers . __ Laborers, not specified ...... __„ _ Longshore workers___ ___ ... _ _ Miners: Coal. _ .... _ _____ _. Copper _ ___ .. Iron __ .... ..... ...... ......... Oil-field workers. Packing-house workers Professional people: Chemists _ _ Clergymen . _ __ __ ____ _ . _ Scientists, not specified....................... 4 1 1 1 1 4 1 8 1 6 1 2 1 1 1 Num ber of associa tions re porting Occupational group Professional people—-Continued University or college personnel ... Professional, not specified__________ Public employees: Teachers Other municipal employees _ State and Federal Government em ployees _ _ _ ___ Railroad workers........................................ Shipyard workers Steel workers______________ _ _________ White-collar workers: Clerks, retail and other_____________ Office workers..... . ...... __ Other, not specified Warehouse workers _ _ Woodsmen ____ __ _ _ _______ 11 13 6 2 8 15 2 7 3 4 3 1 1 6 Business and Operating Results T able 6.— Comparison of operations of nonfarm stores with total group of store associations, 1946 and 1947 Size in terms of business done averaged $217,000 and $254,000 for the stores and for the petroleum associations respectively. Thirty percent of all the reporting nonfarm associations had a business of less than $50,000 in 1947 (i. e., less than $1,000 a week). Another 30 percent had a volume of be tween $100,000 and $250,000. Ten percent had done between $250,000 and $500,000. The busi ness of 3 percent (9 associations) exceeded a million dollars in 1947; this group included 6 cooperatives operating stores, 2 operating cream eries, and 1 operating a chain of 6 cafeterias and 6 food stores. In comparison with the entire group of reporting farm and nonfarm consumers’ cooperatives upon which the Bureau’s annual estimates are based,2 this selected group of nonfarm associations showed significant variations from the “ norm.” The urban store associations, for most of which grocer ies (a low-margin line) constitute the main business, had operating results considerably below the level o f the whole group of store associations (see table 5). Those of the petroleum associations, on the other hand, were substantially above the total group of farm and nonfarm petroleum cooperatives. T able 5.— Operating results of nonfarm cooperatives, 1947, compared with all farm and nonfarm cooperatives Item Amount of business, average: Stnrfis Petroleum associations______________ All farm and nonfarm $367,015 252,880 Nonfarm only $217,000 254,000 Net losses on operations, of those with Percent of sales Percent of sales losses: 3.3 3.2 Stores_________ ______ ___ ____ _____ 2.8 2.5 Petroleum associations______________ Net earnings, of those with earnings: 4.1 2.1 Stores_____________________________ 10.4 7.9 Petroleum associations______________ Patronage refunds of those returning such: 3.5 1.9 Stores_____________________________ 10.2 5.5 Petroleum associations______________ The operating results of 1947 in comparison with 1946 are shown in table 6 for the entire group of farm and nonfarm cooperatives and for the nonfarm associations alone. Here again the nonfarm associations make a somewhat poorer showing than the total group.* * See tables 1 (p. 2) and 3 (p. 4); Item All store asso ciations Nonfarm only 1947 compared with 19$ Membership: Percent of increase................................. Percent reporting— Increase............................................ Decrease.......................................... No change....................................... Amount of business: Percent of increase................................ Percent reportingincrease............................................ Decrease.......................................... Net earnings: Percent going from— Gain to loss.................................... Loss to gain..................................... Percent reporting— Loss in both years........................... Increase in gain............................... Decrease in gain.............................. 13.4 40.2 80.9 19.1 73.7 13.2 13.0 39.9 23.6 80.8 19.2 77.1 22.9 19.4 3.7 20.2 5.1 9.1 30.8 37.0 8.1 21.2 45.5 0) 1 Less than 0.05 percent. Financial Status It appears, from the figures shown in table 7, that the nonfarm associations are seriously under capitalized. Capital per member averaged only $44 in the stores and $34 in the oil associations. Even 15 years ago, $25 per member was regarded by cooperative leaders as the very least amount of capital for beginning a cooperative enterprise. The minimum figure for a new association would be at least double that amount today, and prefer ably triple; but the reporting associations have been in existence an average of 14 years. During their existence some of them have built up, from earnings, sizable reserves, but others had deficits at the end of 1947. For the whole group of re porting stores the average net worth was half again as large as the capital, and the total assets more than twice as large. Even so, assets aver aged only $98 per member for the stores and $92 for the petroleum associations. It is evident that many associations do not really own their businesses. Thus, among the re porting store associations, in 11 percent the net worth (capital, reserves, and undivided earnings) constituted less than 25 percent of the total assets, and in nearly 40 percent, net worth was less than 50 percent of the assets. In nearly 30 percent, the net worth amounted to over 50 but under 75 percent of the assets and, in nearly a fourth, to over 75 but under 90 percent. About a sixth of the associations had a net worth of 90 percent or more. 7 Fortunately, there is a growing awareness of the necessity for adequate financing. M any newly formed associations are postponing the opening of their enterprise until sufficient funds are obtained to enable the cooperative to do a good job. T able 7.— Average capitalization of reporting retail coopera tives 1947 Item Average per association: Share capital _ _ _ _ _ Total assets _ _ _ __ Net worth _ _ __ _ Average per member: Share capital _ Assp.ts _ _ Store associa tions Petroleum associations $23,463 63,167 37,908 $33,116 90,233 56,080 44 98 34 92 Cooperative Production Generally speaking, cooperative production in the United States is carried on by federations rather than by retail associations. Only 14 of the reporting local nonfarm distributive associations3 were doing any manufacturing in 1947. The pro ductive enterprises reported consisted of bakeries (6 associations), dairies (6 associations), slaughter ing or meat-processing plants (6 associations), and a tailor shop (1 association). Of the grand total produced by 12 of the associations in 1947— $7,960,647— bakery goods accounted for $332,699, dairy products for $6,652,073, ice cream for $611,534, meat products for $363,591, and tailoring for $750. One large dairy association accounted for 75 percent of the above total. Education and Publicity A considerable variety of educational media was reported. The methods most commonly re ported were meetings (weekly, monthly, quarterly, semiannual, and annual membership meetings, public “ rallies,” and meetings of small groups in members, hom es); regular or occasional publica tion of a co-op “ house organ” ; personal contacts with members and nonmembers at the store or at their homes; recreational events, including “ social meetings” (2 associations reporting such meetings operate clubhouses), concerts, summer camps, showing of co-op and other films; study and dis9Of course, many farmers’ cooperatives operate feed mills in connection with farm-supply stores, or meat-processing plants in connection with cold-storage lockers; these, however, were not included in this study of nonfarm coopera tives, and information on the value of their products is not available. cussion groups, and speakers. Some associations depended entirely on the cooperative press (usually papers published by the regional wholesales) to educate members in the philosophy and aims of the cooperative movement; their means for reaching nonmembers were not reported. About a fifth of the total associations reporting stated that they had an active educational committee. Others depended on occasional volunteer workers. Only one association reported having a full-time educational director. Some associations use a va riety of the above methods, others only one or two. Of 171 store associations reporting on their educational work, 10 said that none was done, 1 reported that “ very little” was done, and 1 stated that almost nothing was being carried on in this line and that the methods used (not specified in the report) were “ very poor.” For publicity, 55 percent of the associations reporting depended upon advertisements in local papers. A bout 20 percent made use of flyers, leaflets, window posters, and circular letters (either alone or in addition to newspaper “ ads” ). One association makes donations toward recreational activities in the city parks, with attendant pub licity for the cooperative. About 3 percent put on demonstrations of “ co-op label” and other products carried by the store. Twelve associa tions did some advertising over local radio. About 5 percent stated that they did no advertising of any kind, depending for publicity on such factors as word-of-mouth reporting of payment of patron age, low prices, quality merchandise, and good service. Other reported avenues of information to mem bers and the public included mailed material, dis tribution of cooperative literature at the stores and at meetings, and news bulletins issued at weekly, quarterly, and irregular intervals. One association places cooperative literature in school libraries and one places it in the public library. Working Conditions and Wages In 1947, the 257 nonfarm cooperatives reporting as to employment and pay roll had 3,265 full-time workers to whom they paid $6,718,218. For associations reporting both employment and pay roll, the average per employee per year was $2,086 (about $40 per week); all types of labor are included in these figures. 8 Slightly over two-fifths of the associations had fewer than 5 employees each, about 35 percent had 5 but fewer than 10, about 14 percent had 10 but fewer than 25, and about 5 percent had 25 but fewer than 50. Only 2 associations had over 100 employees. Seven associations each had an an nual pay roll of $100,000 or more. Only 42 store associations reported that their employees were organized into unions; in 2 addi tional associations the butchers were members of the union; and in another association the workers were organizing at the time of the report. Of these cooperatives, 33 had written collective agreements with the unions to which their employees belonged, and in another association an agreement was in process of negotiation. Many of the associations whose employees were not organized explained that there was no retail clerks* union in the vicinity for the workers to join. In four of the nine reporting “ other distributive” associations the employees were unionized and were covered by collective agreement. Union Labor and Nonfarm Cooperatives Some of the oldest nonfarm cooperatives in the United States were started with the assistance or support o f labor organizations, but a larger proportion of the new than of the established cooperatives were thus formed. A study made by the Bureau of Labor Statistics, in an endeavor to learn to what extent organized labor is partici pating in cooperatives, indicated that, on the whole, comparatively few associations had the assistance of unions during the promotion period. In many instances, however, although unions as such took no part, their members were leaders in the project. M ost o f the interest in cooperatives manifested during the year 1947 by organized labor was occasioned by the sharply increasing cost of living (particularly the price of food). Numerous new cooperatives have resulted, and some older as sociations report that unionists have joined or are patronizing the cooperative in varying numbers. Other reports indicate, however, that in many cases the interest died before anything concrete resulted. The assistance received from the unions has taken various forms. These include promoting cooperatives in talks at union meetings, holding joint labor-cooperative meetings, endorsing coop eratives (or individual associations) in union resolutions, encouraging union members to join and patronize cooperatives, carrying articles regularly or occasionally in the union papers, helping to organize new associations (through volunteer or hired workers), and even lending or investing union funds in new or established cooperatives. M any labor organizations were mentioned in the reports from the cooperatives as having pro vided one or more o f the above types of help. Of these unions, slightly over 50 percent were AFL, about 30 percent were CIO, and about 20 percent were independent. The organizations whose mem bers or locals were most frequently mentioned were (in descending order o f frequency) the following: International Union o f United Automobile, Aircraft & Agricultural Implement Workers of America (CIO) United Steelworkers of America (CIO) United Brotherhood of Carpenters and Joiners of America (AFL) International Brotherhood of Electrical Workers of America (AFL) International Association of Machinists (inde pendent) International Union o f M ine, M ill & Smelter Workers (CIO) American Federation o f State, County & M u nicipal Employees (AFL) Textile Workers Union of America (CIO) Amalgamated Clothing Workers o f America (CIO) Many cooperatives are in localities where there are no labor unions. That would account in part for the fact that in 21.7 percent of the associations reporting on membership composition there were no members of labor organizations. In 27.9 per cent of the associations, unionists formed a tenth or less o f the membership. A t the other extreme were the associations— 31.0 percent of the total— half or more of the members o f which belonged to unions. Generally, in associations with any sizable proportion o f union members, the compo sition of the board o f directors reflected roughly the same proportion. 9 Union Assistance in Organizing Only a small proportion of these cooperatives had been started with the help of unions. The proportions were largest among the petroleum associations (3 o f 13), the “ other distributive” (2 o f 9), the medical-care (2 o f 4), and the burial associations (2 of 6). Of the 254 stores and buy ing clubs, only 37 had the support o f labor organi zations in getting started. None of the associa tions providing rooms and/or meals, and none of the housing, cold-storage, or “ other service” associations had such help. Thus, in only 46 of the 347 associations of all types had unions been interested at the start; a large proportion of these were the younger associations, formed within the past few years. In the case o f one new association, Negaunee (M ich.) Cooperative Services, the idea of forming the cooperative undoubtedly was bom when the iron miners who constitute the main body of its members received financial assistance, during their strike in the spring o f 1947, from a cooperative in a neighboring town and from the regional co operative wholesale. Within a month after the strike was settled, representatives o f five CIO locals started a campaign which culminated in the opening o f a cooperative store 9 months later. A t the time o f the association’s report to the Bureau, union interest was being maintained by reports on the store’s progress, which were a regular feature at local union meetings. Three other newly organized associations— two in Michigan and one in Minnesota—had free publicity, assistance in organizing, and financial help from unions, especially from the automobile workers. In all o f them, CIO and AFL locals united in promoting the cooperative. The M ichi gan associations opened outlets o f the warehouse type in D etroit and Pontiac, respectively, selling the goods directly from the cases in which they were shipped. In these cooperatives, unionists form 70 and 75 percent of the membership. Another outstanding example o f joint laborcooperative effort is the Peninsula Cooperative Association in Hampton, Va. In a drive begun by an independent union, Peninsula Shipbuilders Association, share subscriptions to the cooperative were collected (with the consent o f the employing company) by means o f a voluntary salary check off. Within 6 months (in January 1948) a com plete food store, stocked largely with “ co-op label” goods, was opened. Its first 3 days’ sales totaled nearly $19,000; its sales for a month amounted to $64,700. About 90 percent o f the 3,200 members belong to the labor organization which sponsored the project. The president and business manager of the union were serving as president and treasurer, respectively, o f the cooperative. In the formation of a Negro association, Cooper ative Commonwealth, Inc., in Gary, Ind., the steel workers’ locals (CIO ), to which a large proportion o f the members belonged, helped with publicity and some funds. This association profited by the mistakes o f a previous cooperative (which went out o f business in 1941), and its formation was preceded by several years of intensive educational and promotional work among the prospective members. Funds were raised, little by little over a long period, through collectors who made periodic calls upon subscribers. M uch o f the construction on the building for the combination grocery-drugstore-lunchroom enterprise which was opened at the end o f 1946 was done by the mem bers. The Crane (Tex.) Cooperative Association, organized in 1947, received wide publicity from eight local unions, which also gave time for coop erative speakers at their meetings. The president o f the plumbers’ union became one o f the coop erative’s directors. A t the time o f its report, however, “ only a small percentage o f union labor had actually signed up” for membership. Some of the oldest associations also were started by unions or their members. These include two funeral associations, in Christopher and Gillespie, HI., the capital for which was provided in the early 1920’s by local unions of the United Mine Workers. The largest consumers’ cooperative creamery in the United States, Franklin Cooperative Creamery Association, Minneapolis, was started by striking milk-wagon drivers, with the support o f the unions. One of the urban petroleum associations, Coop erative Services, the headquarters of which are now in St. Paul, M inn., started operations in Minne apolis in 1933, with the endorsement of the Central Labor Union of the city, in a station leased from the Labor Temple Association. Its organizers were all union men. During its 15-year existence it has had the support o f the local labor unions 10 generally. The association, which operates four gasoline stations and a repair garage in the Twin Cities, is currently receiving publicity and support from 15 different locals, some of which invested funds in the cooperative. Labor Interest and Support Improved Support. Among the store associations, only a small number (82 in all) reported any increase in support from unions or their mem bers since the formation o f the cooperative. Of these one noted that the increase was “ very slight,” and another stated that the interest expressed itself m ostly in “ talk” and not in patronage of the store. In Massachusetts, “ 50 percent o f the union members in one bakery” joined the greater Boston Cooperative Society; other unions, the members o f which also have joined the cooperative in vary ing proportions, are those o f the teachers and of State, county, and municipal workers (both AFL). A t the end of 1947, however, unionists constituted only about 18 percent of its 575 members. One Pennsylvania cooperative was witnessing “ the beginning o f a rather spasmodic support” by indi vidual unionists, mostly members o f the longshore men’s union (AFL). The United Cooperative Society, Maynard, M ass., which started over 40 years ago, before the local woolen mill was unionized, reported that support from unionists (though not from unions themselves) was increasing. About 50 percent o f its 2,567 members belonged to the union (CIO) at the end o f 1947. A cooperative in Michigan, the membership of which contains large groups of factory workers, office employees, and teachers, reported an access of interest by both CIO and AFL locals, but “ no one union has put any con certed effort behind cooperatives.” Sixty percent o f its members are unionists. The Cloquet (M inn.) Cooperative Society, one o f the largest in the United States, was started in 1910, long before labor organizations appeared in the community. Its employees were the first in town— and for some years, the only store employees— to be unionized. Assistance to striking sawmill and paper-mill workers in 1920 and 1922 won continued union gratitude and good will. Members o f these unions were conducting a stock-selling campaign and educational drive for the cooperative, among factory workers, at the time of the association’s report to the Bureau. This association lost its store and goods in a forest fire in 1918 which destroyed the whole town. Since that year, however, it has never sustained an operating loss. It has returned to its members in refunds on purchases the sum of $1,006,675, in addition to $100,808 in interest on their share capital. It is outstanding in the variety o f goods and services provided. .A t the end o f 1947, about 30 percent of its members were unionists. The Janesville (W is.) Consumers Cooperative Association, started just before World W ar II by CIO and AFL union members who combined forces for the purpose, had lately noticed more pronounced labor interest. The AFL Central Labor Union (with 23 affiliated unions) and the CIO Automobile Workers had each appointed a standing committee on cooperatives, and the latter union had become a fraternal member of the association. Organized workers formed 60 percent of this association’s membership in 1947. In Illinois, an association which had had no support from unions as such found that “ union members join readily” when approached; mem bers of organized labor formed 50 percent of the cooperative membership in 1947. A California association, started in 1936, states: “ Now, after 12 years, we do have union members but no active support or sponsorship; however, labor support is growing. The local newspaper o f the AFL Central Labor Union gives us bimonthly articles.” An iron miners’ cooperative in Minnesota, which began operations in 1926, reported that recently members of the barbers’ and steel work ers’ unions (both CIO) and railroad workers (AFL) had become interested. Another associa tion in this State reported that the Trades and Labor Assembly was promoting cooperatives through a series o f labor-cooperative conferences. A third Minnesota association, formed just before the war by members of the longshoremen’s union (AFL), stated that several union locals, both AFL and CIO, had recently formed cooperative committees. Sixty percent o f the cooperative’s membership belong to labor organizations. In a Pacific Coast association started by AFL union shipyard workers, members o f unions still constituted 90 percent of the membership. After 8 years of operation its membership had reached only 250, but new members had recently been 11 coming in from the teamsters’ and teachers’ unions (AFL). The Bacine (W is.) Consumers Cooperative Association, also started by unionists, began in 1933 with a single gasoline service station. Mem bers o f labor organizations form 75 percent of its 2,700 members. The greatest support has come from CIO automobile workers (automobile manu facture is the largest single industry in the city), but AFL unionists are now reported to be partici pating actively also. The association has 2 food stores, 4 gasoline stations, a coal yard, and an insurance agency. A Pennsylvania association reported that one local union ran articles on cooperatives in its paper for a whole year; many union leaders were reported to be members of this cooperative. In an Ohio city, an AFL union had been issuing “ certificate dollars’’ to be spent at the cooperative store. Investment of union funds in shares of the coop erative or in loans to the association was reported from Indiana, Michigan, Minnesota, and New Y ork; and an association in New York State, the members of which are from 28 local unions, had one local join the cooperative as a member. Cooperative Services, Indianapolis—a coal coop erative in the starting of which unions had a hand—reported increased patronage from unions buying coal to heat union halls, and considerable publicity and endorsement at union meetings by both CIO and AFL locals. A milk-distributing cooperative in Michigan, although not started by unionists, has since been aided by a small amount of union funds, and the CIO locals have encouraged their members to join ; in 1947, 80 percent of the members were unionists. One of the recreation cooperatives— a symphony orchestra—reports that “ union leaders have be come patron members and have supported and participated in concerts.” Another association, which operates a meeting hall equipped with snack bar, and promotes recreational events, was started by members of the unions of dining-car employees and marine cooks and stewards (both CIO ). The Pullman-car porters and their ladies’ auxiliaries (AFL) had become interested also. No Improvement in Support. Other cooperatives reported less encouraging situations. The mana ger of a new association in the Midwest stated that unions had not cooperated as they promised while the store was being started; the local union of electrical workers (AFL) “ was the only one that really helped.” An eastern seaboard cooperative reported “ obstruction” by the AFL local unions. An Illinois association had held meetings with certain AFL unions, but had “ no real support.” In one city in New York, “ membership in the cooperative has been urged by labor leaders, but only a few [union members] have joined.” A Pennsylvania cooperative reported only “ luke warm” support, and one in Washington State noted “ some interest but no very active support.” In a Connecticut town, a local CIO union “ started to boost it [the cooperative] for a while but it soon died out.” A Massachusetts cooperative noted that union members had “ expressed inter est, but few have joined” ; unionists formed only 10 percent of the total membership at the end of 1947. A similar situation existed in an Ohio city, where the cooperative had been the object of interest by the AFL and CIO central labor organizations, but had only “ negligible” support in terms of purchases at the store. In a Pennsyl vania association the only evidence o f union interest occurred when a “ small group” of CIO textile workers joined; only 5 percent o f its members in 1947 were unionists. Unionists in Membership and in Directorship Cooperatives do not ordinarily set out deliber ately to accord labor organizations or their members representation on the board of directors. The usual criteria for nomination are membership in the cooperative and ability to perform the duties o f the office. The number of unionists on a cooperative board is usually, therefore, the result o f chance (or composition of the member ship) rather than o f design. It appears, nevertheless, that on the whole, union representation on the board of directors of the cooperatives reporting in this study corre sponds rather closely with the proportion of unionists in the membership. Members of labor unions constituted 50 percent or more of the co operative membership in 31.0 percent o f the associations reporting, but only 10 percent or less in 49.6 percent of them. In 51.2 percent of the associations which had unionists on the board of directors, half or more of the cooperative’s mem bers belonged to labor unions; in 23.0 percent, 12 unionists constituted 10 percent or less of the cooperative membership. On the other hand, among the associations that had no directors be longing to labor unions, unionists form 10 percent or less of the membership in 85.2 percent of the associations (in this group, 53.3 percent had no union members at all). Rural-Urban Cooperation Farmer-nonfarmer contacts within the cooper ative movement have been increasing in recent years. Farmers’ purchasing cooperatives, in grow ing numbers, have been admitting nonfarm people to membership, although to do so means forfeiting eventually their farmers’ exemptions under the Federal income tax. In numerous places farm and village or city people have joined in the for mation of new cooperatives, and in the operations of existing ones. A recent survey by the United States Bureau of Labor Statistics revealed numer ous ways in which farmers and industrial workers are cooperating.4 Cooperation Within Cooperatives The membership composition of the reporting associations indicates in itself collaboration of farm and nonfarm consumers within the same as sociation, to supply their families with commod ities and services. Although there have been numerous scattered instances previously, such joint effort has become common only in compara tively recent years. Mixed farm and nonfarm membership seems to be more common among the distributive associa tions (stores, gasoline stations, etc.) than among the service associations. However, in Nebraska a cooperative cold-storage association was organized by farmers and townspeople acting together, and now serves both. A new cooperative hospital as sociation in Texas, the membership of which con sists mostly of farmers, reports that a number of carpenters “ have expressed a desire to become members, and want to earn their membership by doing construction work on our buildings.” Some 4The Bureau's study was based on returns from 392 associations, which fell into three classes: (1) Cooperatives predominately nonfarm in member ship (324 associations); (2) cooperatives the membership of which consists about equally (within a range of 40-60 percent) of farm and nonfarm people (40 associations); and (3) cooperatives in which the nonfarm members are a factor (constituting at least 25 percent) but which are predominately of farmer membership (28 associations). of the new hospital associations in the Pacific Northwest, also, are sponsored by both farm organizations and labor unions and have individ uals of both groups as members. Among the distributive associations, several Wisconsin cooperatives, predominantly of farmer membership, report that both union and nonunion townspeople are beginning to join. In the Tomah Cooperative Oil Association, AFL railroad workers form about 5 percent of the membership; in Cloverbelt Cooperative Services (Wausau), factory workers constitute 8 to 10 percent. Organized truck drivers and metalworkers form about 5 per cent of the membership of the Burlington Con sumers Cooperative; this association states that “ the cooperative is frequently used by the unions during emergencies.” A store association in Crescent City, Calif., was assisted in organizing by the field representatives of two cooperative wholesales (one an urban and the other a farmer organization). Farmers com prise about 60 percent of the cooperative’s current membership; about 10 percent are unionists. Farmers and members of a local machinists’ union (in the proportions of 2 to 3) form the membership of a buying club in Defiance, Ohio. It was re ported, in the fall of 1947, that in an Oklahoma oil-field area, a new cooperative had been organized by farmers and oil-field workers which would ulti mately also take over for operation an existing farmers’ petroleum cooperative. In Ogden, Utah, a farmers’ supply cooperative and a grocery co operative were reported to have merged. A sub stantial proportion of the members of a carpenters’ local union in Pasco, Wash., was reported to have joined a local farmers’ cooperative. The Fort Bragg Cooperative Mercantile Corp., the oldest consumers’ cooperative store association in California, exemplifies farmer-nonfarmer co operation within one association over a long period. Formed in 1923 by a group of Finnish sawmill workers and woodsmen, it was financially success ful from the start. B y 1929 it had opened a bakery (still in operation) as an adjunct to its general store. In 1947, its business reached an all-time peak of $648,128. From earnings of $17,450 for that year, a patronage refund of $10,814 was re turned. Farmers in increasing numbers have joined the association. Of its 1947 membership of 461 (the town’s population is only about 3,500), farmers constituted about half, unionists about a 13 fourth. The association’s continuing labor sym pathies are shown by the fact that, during the lumber workers’ strike in the spring of 1946, the cooperative contributed $100 a month to the strikers’ relief fund. The association obtains its produce, etc., directly from farmers’ cooperatives as much as possible; it is also a local agent for the Poultry Producers of Central California. Cooperation Between Cooperatives The recent attacks upon the cooperative move ment (particularly the farmers’ cooperatives) by private business groups have had the effect of drawing the two branches of the movement closer together in some cases. Thus, in a number of places in the Midwest, as well as in at least one New England State, cooperative councils have been formed in which both urban and rural co operatives of all kinds participate. The purpose of these councils is not only defense, but also the exchange of experience and ideas and the further promotion of the cooperative movement. On the national level, of the 17 regional whole sales in the United States which are members of National Cooperatives,5 all but 3 are primarily of farmer membership. The Cooperative League of the United States of America, which is the national educational organ of the cooperative movement, was until the early 1930’s almost entirely com posed of urban associations. It recently reported that 80 percent of its membership is rural and only 20 percent urban. Direct Trading with Farmers’ Cooperatives. In the United States, practically all of the regional whole sales which handle groceries and produce make it a practice to obtain their supplies from farmers’ marketing and processing associations. These products include canned and fresh fruits and vege tables, butter, etc. Because of the large quantities involved, it is usually more feasible for such trans actions to be carried on by the wholesales rather than the retail cooperatives. Nevertheless, nearly 27 percent of the 370 associations reporting in the Bureau’s study used farmers’ cooperatives as a source of supply, obtaining from them such things as milk, butter, eggs, and produce, and even meat products. The greater the proportion of farmers in the membership, the more common was the prac tice of direct trading. Even among the strictly * * It also has seven affiliates in Canada. nonfarm associations, over 21 percent reported such a policy; many others explained either that there were no farmers’ cooperatives near enough to make it practicable or that their farm products were obtained through the regional wholesale. In Indianapolis, Ind., Cooperative Services, Inc., which operates several coal yards, is a mem ber of the regional cooperative wholesale, Indiana Farm Bureau Cooperative Association, and ob tains its supplies through that organization. One of the retail cooperative’s directors is a member of the Indiana Farm Bureau. Early in 1948 an organization was formed in Pontiac, M ich., to facilitate the purchase of prod uce directly from farmers, for sale in the new cooperative stores in Pontiac and nearby cities. The organizing group is reported to have included representatives of the Michigan Farmers Union, the Pontiac Consumers Cooperative, the Michigan CIO Council, and the automobile workers’ union (UAW -CIO). It is reported, also, that a coopera tive of small citrus-fruit growers has been formed in Florida, which will sell directly to ClO-sponsored cooperatives in the North. The United Cooperative Society, in Maynard, Mass., is an example of direct trading and coopera tion with other cooperatives. Formed in 1907, the association is one of the oldest as well as one of the five largest nonfarm store cooperatives (as regards volume of business) in the United States. Its air-conditioned department store is a coopera tive “ show place.” In addition, it operates two branch food stores, a gasoline station, and a coal and grain department. Its business in 1947 reached a peak of $1,390,384, as compared with $1,169,273 in 1946. Earnings in these years were $42,010 and $37,094, respectively, from which $27,641 and $29,623 were returned in patronage refunds. In its 40 years of operation, only 1 year (1920) showed an operating loss. Membership in 1947 stood at 2,567 (the town’s population is less than 7,000). About 50 percent of these members belong to labor unions; about 10 percent are farmers. For over 30 years the association has traded directly with dairy farmers, obtaining its supplies of milk from them and paying them higher-thancurrent rates. Its feeds, poultry, and eggs are purchased from a farmers’ cooperative in Fitch burg, and vegetables in season from nearby farmers. Although the association has found that 14 the farmers usually join the cooperative only if it buys their products, on the basis of its long experi ence the association feels “ that there is no ir reconcilable conflict of interest between the farmers and the urban consumers; and that both of these important social elements can work together in consumers, cooperatives for a just and fair solution of their common problems, to the complete satisfaction of both.” The Maynard cooperative was a charter mem ber of the Cooperative League of the USA, formed in 1915, and also of the regional cooperative wholesale, now Eastern Cooperatives, Inc., formed in 1928. A single association reported having discon tinued the practice of direct trading because of unfavorable experiences. Numerous reports from other associations indicated that such relation ships were both practicable and satisfactory, when both parties to the transaction were reasonable in their expectations and demands. Combined Trading and Membership Certain cooperatives have worked out tech niques combining membership and business re lationships with farmers and the latters* coopera tives, and have devised ingenious methods for sharing the economic savings (resulting from the elimination of the middleman) between the pro ducer-suppliers and member-consumers. Cooperative Trading, Inc., Waukegan, 111., is the largest nonfarm consumers’ cooperative in the United States. It was started in 1910 as a buying club by a group of housewives, in protest against a 2-cent rise in the price of milk (then selling at 6 cents a quart). The next year the cooperative bought a small dairy, obtaining its supplies directly from local farmers— a practice since con tinued without change. Continuous expansion has made the cooperative the largest retail milk distributor in the city. In addition, it operates 8 food stores and meat markets, a gasoline service station, an electrical-appliance store (which alsoprovides repair service), an ice cream plant, a bakery, a sausage plant, and a lunchroom. All these facilities have been financed from earnings. Its own plants produced, in 1947, commodities valued at $1,068,480. The total sales in that year amounted to $2,751,468 ($1,752,750 in 1946) on which the net savings amounted to $46,551 ($64,105 in 1946). In the 36 years of its existence, the association has sustained operating losses only in 4 years (1911, 1916, 1917, and 1918). Altogether, its 6,000 members have received from the association over half a million dollars in patronage refunds, besides interest on share capital. The farmer-suppliers constitute a “ rural dis trict” of the cooperative and about 2 percent of its total membership. They have one represent ative on its board of 12 directors. These farmer members receive the current rate for their milk, and, in addition, a “ premium” at one-third of the rate returned on customers’ purchases from the association. Thus, if a 3-percent patronage refund is returned, the premium to the farmer amounts to 1 percent on the value of the total milk marketed by him through the cooperative. The Consumer-Farmer M ilk Cooperative, Inc., Long Island City, N. Y ., was started in 1938, without share capital or assets, by a group of urban welfare workers and religious and labor leaders, as a joint enterprise with local dairy farmers’ coop eratives. Its aim, as stated by the president, was “ to develop an efficient, economical method of distributing milk, as a means of increasing milk consumption and giving the farmers a larger share of the consumers’ milk dollar.” Producers who supplied milk, and the members of each pro ducers’ cooperative which entered into a contract to supply milk, automatically became voting members of the Consumer-Farmer Cooperative, on payment of a membership fee equivalent to 25 cents a farmer member. Individual consumers likewise were admitted, on payment of a 25-cent membership fee and a promise to buy from the association at least $5 worth of milk a year. Each member in both of these classes of membership was entitled to one vote in the affairs of the association. The farmers receive for their products the high est prevailing price in the area where produced. Evidence of the patron’s purchase is a coupon printed on the side of the paraffined container. These coupons are cut out and sent in for redemp tion in quantities of 100 or more. From association earnings, a sum equal to 15 cents per 100 quarts of milk handled is divided among the farmer-suppliers and the consumerpatrons. One-third of this sum is returned as a bonus on the milk supplied and two-thirds are 15 returned to patrons on their purchases. The re mainder of the association’s earnings is used for expansion. The organization currently owns two country milk-receiving and cooling plants, one of which is equipped also for the manufacture of cheese, cream, condensed milk, etc. It also has a part interest in a farmers’ cooperative milk plant. In addition to supplying the dealer-operated agencies which distribute its milk at retail, the association operates a number of “ milk depots” in settlement houses, housing projects, and churches, where the milk is sold at several cents below the prevailing retail price. A t the end of 1947, this cooperative was serving about 25,000 consumers, of whom 6,431 were member-patrons in Greater New York. Its busi ness in that year totaled $1,863,641, as compared with $1,601,466 in 1946; net earnings amounted to $24,435 and $49,366, respectively. In the last 10 years of its operations, besides financing all its new facilities, the association has returned to the pro ducer and consumer members in refunds a total of $141,963. In the year 1947, it paid to producermembers premiums amounting to $74,576, in addi tion to the bonus noted above. From the beginning, the cooperative has oper ated with union labor, and its 45 workers are pro tected by collective-bargaining agreements. The bylaws provide for a board of 15 directors, of whom 6 may be nominated by farm groups. Actually, at the end of 1947, the cooperative had 3 farmer directors (1 representing each group sup plying m ilk); 9 directors were consumers. Consumer-Sponsored Farmers’ Markets. A very recent development is the sponsoring of farmers’ markets by urban consumers’ cooperatives. The advantages claimed for these markets are fresher produce at lower-than-current prices for the pur chaser and, for the farmer, a channel for disposing o f his products at more than would be realized through the usual channels of distribution.8 All of those which have come to the attention of the Bureau are in California—in San Jose, Santa M onica, Oakland, and Los Angeles. • In some places in the United States (notably in Ohio, Indiana, and New York) farmers* marketing associations have opened retail outlets for their products; in such cases the patron may benefit under a profit-sharing arrange ment but has no vote on policies and never becomes a member. Such enter prises were not included in the present study. In 1947 Consumers Cooperative o f San Jose offered a site to be used for direct selling b y farmers to consumers. A t that time prices offered to the growers were below production costs, whereas the retail prices asked had risen sharply. An association of farmers was formed, the mem bers of which voted to assess themselves to finance the erection o f permanent sheds to house the market, on the cooperative’s proffered land. The local labor unions publicized the project among their members. The market days began on October 18, being held first only on Saturday and then on Wednes day as well. According to a report of the farmers’ association,7some 4,000 customers are served each market day. Operation of the market has en abled the farmers to dispose of products that would otherwise have “ rotted in storage,” and in many cases has “ meant the difference between financial embarrassment and realizing a small profit on the year’s crop.” It has meant fresher vegetables and fruit, as well as substantial savings for the housewife. It is claimed, additionally, that the market has acted as a “ check against unreasonable prices.” In the first 19 market days, the farmers made sales totaling about $40,000, and the purchasers realized savings esti mated at about $15,000. Some 60 farmers have been certified as entitled to use the market; an average of 35 use the facilities on any one day. Those who contributed for the construction of the sheds became members of the sponsoring cooperative. About 10 percent of the latter’s members are farmers; unionists form the largest group of members (80 percent). The market, which is a department of the Con sumers Cooperative o f San Jose, has received the endorsement of a number of local CIO and AFL labor organizations, as well as of the Grange and the Farm Bureau. A similar market has been opened by the Con sumers Cooperative Society of Santa Monica. Sheds for a farmers’ market were constructed on the 3-acre site of that association’s new store in West Los Angeles. The market is open every Saturday. A feature of the new facilities is a play area for children of patrons, staffed by volunteer supervisors. 7 San Jose Fanners Cooperative Market. Report of operations, Odtober 18-December 18,1947. 16 In Oakland, Consumers Cooperative Enter prises (a petroleum cooperative with a “ food canteen” ) is reported to have sponsored a farmers’ market on its land adjoining the gasoline station. The market is under the management o f a com mittee composed of cooperative, farmer, and labor representatives. A farmers’ market was started in Los Angeles in the fall of 1947, on land owned by the local machinists’ union (independent). Later, a small store built by volunteer labor was opened under the sponsorship of that union, and the unions of oil and automobile workers (both CIO). Central Organizations Summary figures showing membership, busi ness, earnings, and patronage refunds for the various types of central business organizations are shown in table 8. All of these items show sub stantial progress as compared with 1946. The 66 central organizations reported a total membership of 5,661 associations. These should not be assumed to be 5,661 different associations, as this figure includes a great deal of duplication. This duplication is not so great among the regional wholesales (although in a few cases retail associa tions are members of more than one regional), but probably the m ajority of the affiliates of the dis trict wholesales are also members of the regional wholesale which serves the territory in which they are situated. Likewise, the members of the serv ice and productive federations (especially the latter) may belong not only to several federations but also to the regional wholesale. T a b l e 8. — Summary Wholesale Associations Membership Two additional Canadian regional wholesales became affiliated with National Cooperatives, Inc., in 1947. These were Cooperative Federee (Quebec) and Maritime Cooperative Services (New Brunswick). N ot being in the United States, statistics for neither of these organizations are included here. National Cooperatives estimated that the 5,529 retail members of its 24 regional affiliates (7 of which are in Canada) were serving 1,709,000 individual members at the end of 1947. Of the 23 regional wholesales in the United States which reported to the Bureau of Labor Statistics, 20 estimated that their 3,847 local member associa tions had 1,450,700 individual members in 1947; 13 of these (with 3,392 affiliated associations hav ing an estimated membership of 1,261,600) were members of National Cooperatives. Altogether, 4,134 local associations were mem bers of the 23 regional cooperative wholesales reporting (table 9), representing (for associations reporting for both 1947 and 1946) a 9.3-percent increase. Distributive Facilities8 Among the regional wholesales, Associated Cooperatives of California dropped the dealeragent program which had been adopted to accel erate the organization of cooperatives in farm areas.9 The reason given was that the arrange8 For information on expansion of service and productive facilities of whole* sales, see pp. 20 and 22. •See Bureau of Labor Statistics Bulletin No. 904, p. 17. of operations of cooperative wholesales and service and productive federations, 1946 Wholesales Item All federations Interregional Number of federations reporting........................................... Number of member associations........................................... Total business........................................................................ Wholesale distributive.................................................... T^etail distributive __ ___ ____ _____ _____________ Sftrvifift r Value of own production........................................... ........... Net earnings, all departments.......... - .................................. Patronage refunds, all departments..................................... Loss. 66 6,661 $326,373,646 312,876,773 6,478,525 6,019,248 128,420,867 18,520,108 14,650,986 1 24 $10,681,140 10,681,140 1,746,382 U6,632 Begional 23 4,134 $263,990,790 243,249,008 6,478,525 4,263,257 78,345,967 15,347,688 12,225,345 District Service federa tions 10 166 $5,568,841 5,304,912 16 951 $1,492,062 263,929 1,153,381 246,779 171,795 1,492,062 67,096 40,226 Productive federations 16 386 $53,740,713 53,740,713 47,175,137 2,875,177 2,213,620 17 ment had become unnecessary because of the rate at which rural cooperatives, independent of the dealer program, had developed. In 1947, Central States Cooperatives (Illinois) decided to open a branch warehouse in Detroit to supply cooperatives and unions in that area, when sufficient capital had been subscribed locally. B y early N o vember, nine local trade-unions had subscribed $13,560 toward a goal of $30,000. The marketing of poultry, eggs, and wool was begun in 1947 by Indiana Farm Bureau Cooperative Association. Because of the rapid expansion of the propane (“ liquefied” ) gas department of Farmers Union Central Exchange (Minnesota), that association by the end of the year had constructed three bulk gas plants and had nearly completed a fourth. Minnesota Farm Bureau Service Co. added bag unloading facilities, to expedite its work, and Consumers’ Cooperative Association (Missouri) purchased a site in Denver for a new warehouse. The annual meeting of the Farmers Union State Exchange (Nebraska) held in February, directed the board to obtain a jobbing agency for lumber. A new bag conveyor was installed by the Ohio Farmers Grain & Supply Association, to facilitate truck and car loading of feed and fertilizer. W ith its new facilities and expanded lines of merchan dise, the association expected to be able, shortly, to “ offer a complete line of feeds for every pur pose.” Utah Cooperative Association reported that it had added to its staff a full-time instructor to train the appliance-service men of the local associations. Consumers Cooperatives Asso ciated (Texas) added a million-gallon gasoline terminal at Dumas, T ex.; also a warehouse in Little Rock, Ark., to supply the growing number of affiliates in that State. A t the end of 1947, the association was doing business in Arkansas, Colo rado, Louisiana, Mississippi, New M exico, Okla homa, and Texas. Pacific Supply Cooperative (Washington) an nounced that it would build a branch warehouse in Spokane to serve associations in Idaho and east ern Washington. Central Cooperative Whole sale (Wisconsin) opened a branch warehouse in Escanaba, M ich., to serve the upper peninsula of that State; it also obtained a new warehouse in Superior, Wis., for farm machinery and building supplies. In addition to a new warehouse, Wisconsin Co operative Farm Supply began to carry light hard ware; it discontinued handling whole grains. Among the district wholesales, Northland Co operative Federation (Michigan) announced plans for a bulk distributing plant in Nadeau, using a nearby cooperative as retailer; also for a bulk plant at Chatham as soon as materials and tanks became available. It discontinued handling farm machinery and insulation materials, as these are being sold by the retail associations in its area. Fox River Valley Cooperative Wholesale (Wis consin) and Trico Cooperative Oil Association (Minnesota) each added a new warehouse and the latter also installed four 17,000-gallon storage tanks. Cooperative Services, at Maple, Wis., began the construction of a new building to house its office staff and repair shop. At the end of 1947, only 3 regionals were running retail branches; these had a total of 20 such establishments. All but 2 wholesales were doing warehousing, operating altogether 81 ware houses. One regional had 16, one had 13, one had 11, three had 5 each, one had 4, two had 3, five had 2 each, and the other six had 1 each. Distributive Operations W ithout exception, the regional wholesales for which data are available for both 1946 and 1947, had substantial increases in volume (table 9), amounting for the whole group to 37.6 percent in distributive business and 65.5 percent in service business. Among the district wholesales the in creases were 17.0 and 45.5 percent, respectively, with one of the associations reporting a decrease in volume. Total wholesale volume amounted to $253,990,790 in 1947. Cooperative wholesale grocery business was generally carried on at a loss in 1947. This was indicated in the operating losses of two wholesales handling groceries only or mainly and in the grocery-department losses of three other associations handling other commodi ties as well. Nevertheless, net earnings of the regional wholesales (all departments) exceeded 15}£ million dollars, and from this amount patron age refunds of nearly 12 Yamillion were returned to members. 18 The report of Midland Cooperative Wholesale gives evidence of the value of the productive activities. In addition to earnings from its own productive plants (making feed, insecticides, re fined petroleum products, and lubricating oil) the wholesale received, from the 9 productive fed erations of which it is a member, patronage re funds totaling $745,020— constituting over 60 per cent of its total earnings of $1,178,847. Farmers Union Central Exchange reported that, in addi tion to its “ cash net savings” of $2,428,513, patron age refunds from other cooperatives totaled $588,744. Seventy-nine percent of the total earn ings of Consumers Cooperatives Associated (Texas) were attributable to the operations of its produc tive plants. T able 9.— Distributive and service business, net earnings, and patronage refunds of cooperative wholesales, 1946 and 19471 [Associations marked * are members of National Cooperatives2] Number of affiliated associations Amount of business 1947 1947 1946 $10,581,140 $16,900,000 Association, and location of its headquarters All associations: Interregional................... Regional: Wholesale business.. Retail business....... . Service business___ District: Wholesale business. Service business___ 24 1 [4,134 } 106 1946 22 f 243,249,008 3,816 { 6,478,525 1 4,263,257 f 112 \ 5,304,912 263,929 Net earnings 1947 * $16,632 1946 Patronage refunds 1947 0 0 177,354,657 1 5,773,769 >15,347,688 $10,360,099 $12,225,345 2,414,826 3,454,237 } 181,307 246,779 1946 181,504 171,795 $8,121,316 128,695 Interregional 24 Illinois—National Cooperatives (Chicago)............................... 22 * 10,581,140 16,900,000 1,038,894 928,371 110,523 756,229 1,633,392 1,615,418 17,974 518,609 471,538 47,071 335,659 1,203,385 1,180,308 23,077 *16,632 0 0 Regional California—Associated Cooperatives 8(Oakland) *.................. Distributive business, wholesale........................................ Service business................................................................... Idaho—Idaho Grange Wholesale8 (Shoshone)........................ Illinois—Central States Cooperatives • (Chicago)*................. Distributive business, wholesale........................................ Service business................................................................... Indiana—Indiana Farm Bureau Cooperative Association (Indianapolis) *............ .................................................. ........ Distributive business, wholesale....... .............................. Service business.... .............................................................. Iowa— Iowa Farm Service Co.1* (Des Moines)............................. Cooperative Service Co.6 (Waterloo)................................. Michigan—Farm Bureau Services12 (Lansing)*..................... Distributive business, wholesale........................................ Distributive business, retail............................................... Service business................- ............................................... M innesotaMidland Cooperative Wholesale (Minneapolis)*.............. Distributive business, wholesale................................. Service business............................................................ Farmers Union Central Exchange (St. Paul)*................. Minnesota Farm Bureau Service Co. (St. Paul).............. Missouri— Consumers Cooperative Association12 (Kansas City)*. Distributive business, wholesale................................ . Service business............................................................ Farm Bureau Service Co. of Missouri12 (Jefferson City).. Nebraska—Farmers Union State Exchange (Omaha)*......... . Distributive business, wholesale........................................ Distributive business, retail............................................... Service business................................................................. . New York—Eastern Cooperatives, Inc. (New York)*.......... . Distributive business, wholesale......... ............................ Service business.................................................................. Ohio— Farm Bureau Cooperative Association (Columbus)*___ Distributive business, wholesale................................ Service business............................................................ Ohio Farmers Grain and Supply Association (Fostoria). Distributive business, wholesale................................ Distributive business, retail....................................... Oregon—Oregon Grange Wholesale (Portland)....................... Pennsylvania—Pennsylvania Farm Bureau Cooperative Association (Harrisburg)*.................................................... Distributive business, wholesale........................................ Service business................................................................. . Texas—Consumers Cooperative Association (Amarillo)*....... Distributive business, wholesale................................ Distributive business, retail....................................... Utah—Utah Cooperative Association (Salt Lake City)*. See footnotes at end of table. I 42 | 13 | 112 1 \ I 86 (9 34 1 153 1 \ 1 509 1 [ 425 74 1 | 1,195 22 300 • 175 89 * 215 (9 • 28 252 14 f 31 < l 11 f 112 < l f 23,986,167 86 <1° 22,944,211 l 1,041,956 1 [ 215,958 2 2,053 211,518 67,006 22,589 67,006 22,589 *33,614 9,618 217,343 ] [ 5,148 18,961,538 ] 18,478,474 >112,627,947 ii 1,761,742 112,627,947 483,064 4,192,461 132,677 f 15,875,335 1 11,214,919 153 1 4,539,203 l 121,213 2,846,591 0 11,617,848 8,257,822 3,277,324 82,702 102,079 0 377,077 316,094 70,970 * 9,987 u 1,579,914 0 51,896 100,230 0 • 2 277,728 2 334,870 f 23,084,288 440 < 22,896,889 l 187,399 28,517,326 400 3,309,979 73 15,964,436 1 15,793,110 HU,178,847 ii 622,554 ii 822,526 171,326 20,403,330 J*2,428,513 i« 1,976,130 i* 1,891,668 2,216,751 i* 135,193 i* 266,521 i* 266,521 i* 1,269,476 i* 134,973 f 39,202,613 1,015 \ 38,367,736 l 834,877 480,611 6,563,502 4,784,457 338 1,678,947 100.098 6,327,260 168 • 6,317,818 9,442 26,698,547 1 26,069,029 [n3,806,837 ii 1,665,299 112,546,329 629,518 1,916 219,138 4,850,223 289.398 381,878 155,036 3,508,931 289.398 381,878 1,341,292 64,102 0 0 0 6,193,446 W 6,186,100 > *91,176 *13,340 7,346 37,177,490 89 ■ 36,375,996 801,494 2,544,964 2,284,589 198 260,375 14 0 28,097,550 27,598,761 ni,855,203 ii 1,501,276 «1,104,176 498,789 1,872,502 1,646,681 ■ii 114,703 ii 84,544 “ 94,218 225,821 1,012,376 70,478 0 0 71 (9 0 18 73,659 277,727 240,478 69,380 * 32,131 8 1 14,569,072 1 14,402,019 [ 10,789,634 28 167,053 8,444,997 5,616,409 207 < 168,444,997 4,687,077 929,332 0 20 1,014,527 572,533 11408,416 ii 1,328,700 184,003 138,138 45,865 0 «894,777 «66,812 70,237 ii 394,852 i» 272,191 H 220,348 i« 171,607 368,226 »368,226 0 10,898 236,788 i« 191,990 44,798 35,457 368,226 1*368,226 0 10,898 285,555 i* 240,757 44,798 30,138 19 T able 9.— Distributive and service business, net earnings, and patronage refunds o f cooperative wholesales, 1946 and 194?1— Con, Number of affiliated associations Amount of business 1947 1947 Association, and location of its headquarters Washington— Grange Cooperative Wholesale1 *6 (Seattle)......................... 3 2 Distributive business, wholesale.................................. 57 Service business............................................................ Pacific Supply Cooperative (Walla Walla)*...................... Distributive business, wholesale.................................. * 119 Service business............................................................ Wisconsin— Wisconsin Cooperative Farmy Supply Co.® (Madison) __ 40 Central Cooperative Wholesale (Superior)*...................... 1 Distributive business, wholesale................................. [ 180 Service business............................................................ 1946 $5,544,920 5,302,221 242,699 17,525,274 115 • 17,111,538 413,736 55 • 19 f 173 t l 4,381,546 7,687,265 7,472,473 214,792 Net earnings Patronage refunds 1947 1946 1947 7 $284,120 7$227,562 7$284,120 7 $227,562 11 915,868 »713,437 11915,868 ii 713,437 2,256,509 91,063 6,840,953 1 6,647,118 [* n309,351 193,835 54,041 75,068 40,784 ii 270,288 H309,351 11240,570 (4) (4) 1946 $4,085,094 4,042,968 42,126 12,589,329 12,353,357 235,972 1946 District Iowa—Propane Gas C o-op6 (Eagle Grove)............................. M ich iganCooperative Services (Bruce Crossing).............................. Northland Cooperative Federation (Rock)....................... Minnesota— Trico Cooperative Oil Association17 (Cloquet)................. C-A-P Cooperative Oil Association18 (Kettle River)....... Distributive business.................................................... Service business............................................................ Range Cooperative Federation (Virginia)......................... Distributive business................................................... • Service business............................................................ Wisconsin— Fox River Valley Cooperative Wholesale19 (Appleton). . A & B Cooperative Association20 (Ashland).................... Range Cooperative Services (Hurley)............................... Distributive business................................................... Service business............................................................ Cooperative Services8 (Maple).......................................... Distributive business................................... ............... Service business............................................................ 24 19 6 8 7 8 18 18 19 18 26 25 47 4 (0 6 7 1 Unless otherwise indicated, data are for calendar year. 2 National Cooperatives at the end of 1947 also had seven affiliates in Canada: Alberta Cooperative Wholesale, British Columbia Cooperative Wholesale, Manitoba Cooperative Wholesale, United Farmers of Ontario, Saskatchewan Federated Cooperatives, Cooperative Federee (Quebec) and Maritime Cooperative Services (New Brunswick). Other affiliates in the United States, not shown in this table either because not federations or because not handling consumer goods, are Farmers’ Cooperative Exchange (North Carolina) and Tennessee Farmers Cooperative. 3 Loss. * No data. « 6-month period, ending June 30 (change in fiscal year). * Fiscal years ending Oct. 31. 7 Including service departments. * Fiscal years ending Sept. 30. Capital and Resources Of the 21 regional wholesales reporting on their capital structure, 2 are nonstock organizations. O f the other 19, 16 were using both preferred and common stock to finance their operations. They reported a total of $21,031,118 in preferred stock and $12,592,696 in common. The 3 associations which had issued no preferred shares had common stock amounting to $443,525. None o f the reporting district wholesales had issued preferred stock. One was a nonstock association; the com mon stock of the other 6 totaled $371,540. Assets reported by 22 regionals amounted to $106,557,433. The ratio of current assets to total assets among these associations ranged from 38.9 to 94.4 percent (in 1946 the range was from 32.0 5 f 7 \ 1 i 6 \ l 70,270 115,100 542,035 375,679 253,887 171,655 82,232 2,097,811 1,923,346 174,465 1,200,258 220,059 431,440. 1 424,957 [> 6,483 262,302 21 261,553 2i 749 (<) 203,462 537,743 (*) 9,463 i®6,850 278,769 28,830 213,560 148,619 • 24,915 64,941 1,746,288 1,634,088 * “ 56,227 112,200 13,958 i« 12,380 7,289 i« 6,850 <*) (4) i®12,380 23,827 (4) 10,823 21,163 9,741 1171,435 H34,030 1152,824 23,827 (4) 155,392 66,811 18,213 (4) 12,917 64,206 3,418 (4) 12,917 283,057 11,138 14,120 12,642 (*) 7 24,332 7 22,044 722,197 217,273 213,107 | 4,166 717,006 ®Fiscal years ending Mar. 31, 1947 and 1948. Including goods marketed, to value of $390,531. 11 Including service and productive departments. Fiscal years ending Aug. 31. « Including $47,599 in brokerage and commissions. MIncluding productive departments; does not include $588,744 earned in stock credits in other cooperatives. 15Including productive departments. 1610-month period ending Oct. 31 (change in fiscal year); including goods marketed, to value of $413,048. 17 Fiscal years ending June 30. i* Fiscal years ending Apr. 30,1947 and 1948. Fiscal years ending July 31. ®° Fiscal years ending May 31. 2i Income from machinery repairs is included with distributive business. to 96.4), with an average of 53.0 percent (52.3 in 1946). The range among the 7 district associa tions reporting was from 36.4 to 93.9 percent (44.2 to 75.1 in 1946), with an average o f 56.4 percent (61.6 in 1946). The ratio of current assets to current liabilities was equally variable, ranging among the regional wholesales from 1.1:1 to 24.0:1, and among the district wholesales from 1.2:1 to 15:6:1. Member equities (i. e. ratio of net worth to total liabilities) ranged among the 19 reporting regionals from 10.5 to 96.0 percent, with an average of 59.2 percent; in 1946 the range was from 1.6 to 92.3 percent and the average 51.9. Among the district wholesales the range was from 38.0 to 95.7 percent (57.6 to 91.5 in 1946) and the average 59.7 percent (69.2 in 1946). 20 Services of Central Cooperatives already operating one in Virginia, M inn.), and its annual meeting authorized the purchase of land for a summer camp. Expansion of Services by W holesales The annual meeting of Central States Co operatives (Illinois) authorized its board of direc tors “ to begin— on an experimental basis— a com plete management service to be provided by contract for those member associations which voluntarily agree to accept it.” This association was already providing bookkeeping and auditing service on the same basis. Bulk-station main tenance and repair were services added during the year by Midland Cooperative Wholesale. Consumers’ Cooperatives Associated (Texas) which had an appliance-service shop in Amarillo, added another in Dallas. Central Cooperative Whole sale discontinued its house-insulation service; lack of sufficient volume and the wide area to be served made this service impracticable. Expansion of Services by Federations Expanding business forced the Cooperative Publishing Association (Superior, W is.) to buy additional typesetting and offset equipment. Federated Co-ops, Inc., of East Central Minne sota added propane gas and storage tanks to the lines handled. Range Cooperative Federation acquired a new mortuary in Hibbing (it was Service Business Although the total amount of service business done has increased steadily since 1945, certain lines (such as funeral service, insurance and bonds, and transport) showed a decrease in 1947. On the other hand, a notable increase occurred in the amount of finance service; this should rise still more when the National and California finance federations get under way. About three-fourths of the service business is done by the wholesales (table 10), and one-fourth by the service federations. About the same in crease was recorded by wholesales and federations in 1947 (37.6 and 38.0 percent, respectively). Resources of Service Federations M ost of the service federations are in lines that require little equipment or plant. For the 14 federations furnishing financial data, assets totaled $1,378,117 or only $99,080 per association. The finance federations were naturally among those with the largest financial resources. Net worth ranged from 8.2 to 99.4 percent of total assets. T a b l e 10.— Value o f services performed by cooperative wholesales and federations, 1 9 4 8 -4 7 1946: Total 1947 Total Type of service Amount Per cent Depart ments or subsidi Service aries of federations Amount whole sales Per cent 1945: Total Amount Per cent 1944: Total Amount Per cent 1943: Total Amount All services.................................................... $6,019,248 100.0 $4,527,185 $1,492,062 $5,485,092 100.0 $4,285,898 100.0 $11,652,806 100.0 $5,163,060 236,300 Repairs (autos, machinery, appliances, etc.). 120,385 Funeral service.............................................. Recr^at-imi __ 7,398 167,488 Insurance, bonds, etc...... ............................. 292,745 Auditing, accounting, tax service................ Financing and credit------------------ ------------ 1,100,414 Store services (management, planning, ad 429,973 vertising, etc.)............................................ Transport (truck, pipeline, tank car, etc.)— 2,984, 713 4,995 Millwright service ____________________ 65,241 Printing (purchase only).—......................... 89,149 House insulation __________________ 19,853 C!nld storagfi _ ____________ 500,594 Other (not specified)..................................... i Less than 0.05 percent. 3.9 2.0 .1 2.8 4.9 18.3 236,300 64,518 7,398 167,488 142,893 91,570 7.1 49.6 .1 1.1 1.5 .3 8.3 385,139 2,906,438 4,995 19,853 500,594 55,867 154,870 168,358 2.8 3.1 149,852 1,008,844 350,667 242,832 321,828 6.4 4.4 5.9 217,669 3,977,795 3,139 25,172 22,762 4.0 72.6 .1 .5 .4 44,834 78,275 65,241 89,149 153,183 97,337 4,846 246,083 167,583 130,412 60,585 3,103,882 3,029 16,412 302,546 3.6 2.3 .1 5.8 3.9 3.0 Per cent 100.0 126,295 93,412 4,752 68,498 137.274 136.275 1.1 .8 (9 .6 1.2 1.2 77,981 104,073 4,864 49,912 154,357 178,884 1.5 2.0 .1 1.0 3.0 3.5 1.4 53,226 72.4 10,486,685 .1 .4 .5 90.0 15,496 3,964,808 .3 76.8 7.1 546,389 333 4.7 612,352 C) 11.9 21 T a b l e 11.— Service activities o f central cooperative organizations, 1946 and 1947 SERVICE D E PA RTM E N TS OF WHOLESALES Amount of service business (gross income) Amount of service business State, association, and kind of service State, association, and kind of service 1947 Total.............................. Regional wholesales. District wholesales. California—Associated Cooperatives.................. Auditing and accounting.............................. Insurance (agency)........................................ Trucking........................................................ Illinois—Central States Cooperatives: Account ing...................................................................... Indiana—Indiana Farm Bureau Cooperative AssociationAuditing.. Insurance ( _ Finance (credit). Automobile and machinery repair.. Trucking............................................ Other................................................. Michigan—Farm Bureau Services........... Management....................................... Millwright.......................................... Trucking............................................. M innesotaMidland Cooperative Wholesale....... Appliance repair. ........................ Bulk-station repair...................... Trucking...................................... Pipe-line and tank-car service . . . Range Cooperative Federation......... Automobile repair and service... Mortuary..................................... Cold-storage locker service.......... Recreation. .................................. C -A -P Cooperative Oil Association. Automobile repair....................... Trucking...................................... 1947 1946 $4,627,186 4,263,257 263,929 $2,596,133 2,414,826 181,307 110,623 5,627 104,894 102 47,071 302 46,622 147 17,974 23,077 1,041,966 22,824 63,805 91,570 24,818 402,561 446,378 121,214 7,377 4,995 108,842 483,064 19,715 60,500 95,446 25,125 282,278 187,399 8,514 2,955 34,831 141,099 174,465 82,696 64,518 19,853 7,398 82,232 59,883 22,349 ....... 82,"702 7,868 3,139 71,695 171,326 3,889 ....... 28,''975 138,462 112,200 59,752 46,249 .........6,*199 64,941 44,590 20,351 1946 $834,877 53,979 9,704 53,010 718,184 Missouri—Consumers Cooperative Association . Auditing.................................................. Management-.......................................... News— .................................................... Trucking.................................................. Nebraska—Farmers Union State Exchange: Trucking............................................................ New York—Eastern Cooperatives...................... Insurance (agency) and bonds............... Bookeeping.............................................. Housing information and advice............ Ohio—Farm Bureau Cooperative AssociationTrucking_______________________________ Store plans and specifications..___________ Pennsylvania—Pennsylvania Farm Bureau Cooperative Association: Trucking................. WashingtonOrange Cooperative Wholesale..................... Auditing.................................................. Trucking.................................................. Other................ ..................................... Pacific Supply Cooperative.......................... Automobile repair................................... Trucking.................................................. W isconsinCooperative Services..................................... Insurance (agency).................................. Machinery repair............. ...................... Central Cooperative Wholesale.................... Auditing.................................................. Trucking.................................................. Appliance repair.................................... House insulation..................................... Advertising.................................... Range Cooperative Services: Trucking. $629,518 36,717 592,801 o 100,098 9 8 7,346 801,494 453,456 348,038 498,789 303,627 195,162 167,053 242,699 1,243 241,138 318 413,736 50,957 362,779 42,126 1,491 40,635 235,972 30,836 205,136 749 749 4,166 214,792 40,832 147,463 6,477 33,392 123,042 (2) J.VO, OOil 22,762 14,639 20,020 6,483 <*) SERVICE FEDERATIONS Member associa tions Amount of business (gross income) State, association, and kind of service 1947 Total............................................................................................................... Illinois—Coop. Federation of Chicago: Supervisory and planning service. Iowa—Business Service Assn.3 (Des Moines): Auditing, bookkeeping, tax service, and business analysis__________________________________ Maryland—Federated Cooperatives of Maryland (Frederick): Financ ing, collections, statistics, management.................................................... M innesotaCooperative Auditing Service4 (Minneapolis): Auditing, accounting, tax service, business advice................................................................. Midland Credit Corp. (Minneapolis): Loans to cooperatives............ Farmers Union Coop. Credit Assn. (St. Paul): Loans to cooperatives. Federated Co-ops, Inc.7 (Cambridge): Insurance, insulation, pro pane gas, trucking................................................................................ Northland Co-op M ortuary8 (Cloquet): Funeral service___________ Cooperative Press® (Minneapolis): Collective purchase of office supplies and printing........................................................................... Montana—Farmers Union Carriers3 (Froid): Trucking_______________ Nebraska— Fanners Union Non-Stock Coop. Transport Assn.3 (Dodge): Truck ing......................................................................................................... Farmers Nonstock Transport Assn.12 (Milford): Trucking................. Farmers Union Coop. Transport Assn. (Ravenna): Trucking............ South Dakota—Equity Audit Co.® (Aberdeen): Auditing, accounting, and tax service............................................................................................ Wisconsin— Valley Cooperative Services14 (Appleton): Burial service................... Central Finance, Inc. (Superior): Financing sales contracts............... 1No data. * Included with machinery sales (table 9), * Fiscal years ending Sept. 30. 4 Fiscal years ending Nov. 30. * Amount of loans made. * Dividends paid on share capital. 7 Fiscal years ending June 30. 1946 951 1947 890 $1,492,062 9~ Net earnings 1946 1947 $67,096 $514,948 " 7,679 liT Patronage refunds 1946 1947 $36,619 $40,226 1946 $21,264 — ================~ ~ “— 164 130 20,167 16,607 31 111 4 4 37,155 33,077 14,552 10,800 14,552 10,800 439 90,321 33 8739,268 163 «232,559 77,278 0) 165,171 2,178 3,018 7,598 3,101 2,185 5,013 1,960 8 850 8 6,804 2,791 8 725 444 31 169 23 21 22 21 89,149 27,605 74,570 14,525 4,954 5,135 4,435 346 4,025 3,800 14 16 11 15 65,241 1110,244 1825,172 9,094 3,227 114,368 18 1,212 5,298 2,862 4,368 181,057 2 4 11,129 13,609 43,293 9,784 11,570 0) 652 1,653 12,705 1,056 710 652 18800 (0 1,056 (0 (0 2 4 4 (0 (9 39 39 39,364 34,253 2,077 1,173 721 435 5 2 5 2 28,262 « 37,017 19,526 5 24,321 4,473 291 953 226 2,632 600 8 Fiscal years ending Mar. 31,1947 and 1948. ®Fiscal years ending Oct. 31. 1010 months. 11 Second half of year. 12 Fiscal years ending Aug. 31. 13Approximate. 14 Fiscal years ending July 31. 22 Production by Central Cooperatives Expansion of Facilities by W holesales National Cooperatives took over the operation of Cooperative M ills (formerly owned jointly by several cooperative wholesales), the mill becoming a productive department of National. Indiana Farm Bureau Cooperative Association constructed an acidulating plant, with an annual capacity of 50,000 tons of superphosphate. This association distributes over 20 percent of the fertilizer used on Indiana farms, and about 50 percent of the high-analysis fertilizer. Oil pro perty with 80 wells producing an estimated 1,700 barrels daily, owned by the wholesale, was sold to a private company to “ get capital for further oil exploration.” These “ explorations” resulted in five new wells in Indiana toward the end of the year. The wholesale will have the right to all of the output of these wells as long as they produce. It will also have additional output from the same company, amounting to nearly 25 percent of the previous supply. The wholesale purchased, in December, 44 producing oil wells and leases on undeveloped oil property in southern Illinois, raising the association's oil capacity by nearly 1,100 barrels daily. The association's feed mill at Lafayette, Ind., was discontinued. Its sawmill at Pine Bluff, Ark., was also sold, with some timber tracts; the reason was the declining availability o f good pine timber in the area. Having become part owner (with Midland and Ohio Farm Bureau wholesale) o f coal-mining property in Kentucky, this wholesale likewise disposed of its part interest in another mine in the same State. The chief concern o f Midland Cooperative Wholesale in 1947 was to obtain sufficient crude oil to keep its refineries operating at capacity. Drilling on its leased oil land in Oklahoma netted the association 10 producing oil wells, bringing the total to 35 by the end of November 1947. The association also had 7 natural-gas wells. M id land announced its intention of selling its property in Burkhardt, Wis., purchased in 1944, as the expansion o f Northwest Cooperative M ills' feed facilities had made the Burkhardt mill “ unneces sary and obsolete.” Farmers Union Central Exchange reported that 42 percent of the “ light ends” handled by the cooperative in 1947 came from its petroleum refinery at Laurel, M ont. The association was looking forward to the possibility of manufactur ing propane gas in the refinery, and to the manu facture of tractors. The Exchange joined with National Cooperative Refinery Association in “ wildcat” drilling on the 7,000 acres jointly leased by them in northern Montana. Farm Bureau Services (M ich.) began the construction of a fertilizer-mixing and acidulating plant at Saginaw, and completed it in April 1948. Consumers' Cooperative Association (Missouri) bought the aviation-gasoline refinery it had operated for the Federal Government at Coffeyville, Kans., making it the first cooperative to produce high-octane fuel and bringing to four the number of petroleum refineries owned by the association. Several months later it completed the construction o f a furfural unit adjacent to the new plant. As a result of the purchase of a private oil corporation (including 151 oil wells and leases on 15,398 acres of land in Kansas), Consumers' Cooperative Association owned, by November 1947, 955 oil wells and controlled more than 140,000 acres o f oil land. Its wells were reported to be producing about 50 percent of the crude oil needed by its refineries. N ot including the octane plant, in 1947 its petroleum plants were producing at the rate of 225 million gallons of refined fuels annually. A contract for a lK-million dollar dewaxing unit to be built at the association's Coffeyville, Kans., refinery was signed early in December. A plant to produce protein for feed was nearing completion at Eagle Grove, Iowa, at the end of 1947, and construction on a commercial-fertilizer plant was started in De cember. A shortage of boxcars forced a 2-week shut-down of its lumber mill in Oregon. Although some 70 percent of the goods distributed to mem bers was produced either in CCA's own plants or in those in which it is a part owner, the asso ciation reported that it was planning not only to increase its production of crude oil but also to enter additional lines of manufacture. The Farmers Union State Exchange, in Ne braska, bought a privately owned oil-compounding plant which had been its source of supply for lubricating oil for years. Ohio Farm Bureau Cooperative Association acquired a new chick hatchery in Jackson Center. In the same State, Ohio Farmers Grain and Supply Association 23 added new equipment for its feed and fertilizer plants, as well as a new pellet mill and hammermill. Pennsylvania Farm Bureau Cooperative bought a farm near Harrisburg, to be used for poultry improvement. A new branch warehouse at Greensburg was completed during 1947 and one was purchased at Florin. The Utah Cooperative Association, which had not previously been a producer, made plans to enter petroleum produc tion. Difficulties in transporting crude oil from its 28 producing wells were solved by Consumers’ Cooperatives Associated (Texas) by laying a pipeline into the field, allowing the wells to be operated nearly at capacity. During the year, three additional wells were brought in. The association (which also manufactures feed) is exploring the possibilities of further production. Range Cooperative Federation bought a pri vately owned milk-bottling plant containing 500 cold-storage lockers and space for the construction of as many more. Two new productive federations went into operation in 1947— the Central Farmers Fertilizer Co. and the Millers Creek Coal Cooperative. The former is owned by 15 regional associations, the latter by the Indiana and Ohio Farm Bureau Co operative Associations and Midland Cooperative Wholesale. Late in 1947, the Central Farmers Fertilizer Co. purchased over 2,000 acres of land containing phosphate deposits, in southeastern Idaho. North Iowa Cooperative Processing As sociation constructed a new warehouse; Coopera tive Fertilizer Service opened a branch plant at Culpeper, V a.; and Cooperative M ills (Glendale, Ohio) installed new storage bins and a corn dryer. Expansion of Facilities by Federations National Farm Machinery Cooperative, owned by 12 regional wholesales, built a large addition to its cultivator plant at Bellevue, Ohio, and authorized the erection of a foundry building. The National Cooperative Refinery Association, owned by 5 regional wholesales, purchased control in a company from which it had previously been buying some of its crude oil. The addition of the more than 200 wells thus acquired, plus a number of new wells brought in later, raised the association’s total to about 300 by October 1947. It expected to add thereafter two to four new wells a month.101 * B y mid-1947 it was reported to own or control 60 percent of its crude-oil sources.11 Its refinery was handling about 20,000 barrels of crude oil a day. A desulphurization unit was added late in 1947, to make possible a greater production of high-octane gasoline. The Millers Creek Coal Cooperative, organized by three wholesales in 1946, was, by fall of 1947, producing 1,000 tons a day at one mine and was starting production at another. 10Nebraska Cooperator (Omaha), Oct. 1,1947. 11 Cooperative Builder (Superior, Wis.), Aug. 14,1947. T able 12.— Value o f manufactures of cooperative wholesales and federations, 1943-47 1946: Total 1947 Total Commodity group Amount Per cent Depart ments or subsidi aries of whole sales Produc tive feder ations Amount Per cent 1945: Total Amount Per cent 1944: Total Amount Per cent 1943: Total Amount All products...................................... $128,420,867 100.0 $81,245,730 $47,175,137 $95,583,814 100.0 $60,577,789 100.0 $48,999,183 100.0 $29,431,499 2,712,314 Food products................................... Crude oil............................................ 4,323,115 Refined petroleum products............. 47,481,861 Lubricating oil................................... 6,284,424 323,716 Grease................................................ 272,345 Paint.................................................. Lumber and shingles......................... 1,973,207 443,692 Printing and printing products........ 109,570 Coal Chemical products (cosmetics, 452,591 household supplies, insecticides).. 486,486 Poultry and poultry products.......... Feed, seed, fertilizer.......................... 57,557,781 Farm machinery................................ 4,760,897 Other.................................................. 1,238,868 * No data. * Less than 0.05 percent. 2.1 3.4 37.0 4.8 .3 .2 1.5 .3 .1 2,712,314 3,866,717 37,676,000 6,284,424 323,716 272,345 802,907 148,948 .4 .4 44.8 3.7 1.0 452,591 486,486 26,922,940 989,433 306,909 456,398 9,805,861 1,170,300 294,744 109,570 30,634,841 3,771,464 931,959 4,285,504 2,693,007 36,392,061 4,891,432 191,210 119,074 309,059 321,491 4.5 2.8 38.1 5.1 .2 .1 .3 .3 2,120,517 1,438,027 25,852,711 4,369,325 183,023 71,380 693,598 249,239 59,610 3.5 2.4 42.7 7.2 .3 .1 1.1 .4 .1 2,073,462 721,050 21,165,002 4,659,465 226,374 81,689 1,361,866 192,793 29,274 4.2 1.5 43.2 9.5 .5 .2 2.8 .4 .1 1,958,036 31,340 6,743,901 1,358,479 223,864 1,351,782 360,502 326,959 930,742 298,749 42,673,541 2,353,630 124,314 1.0 .3 44.7 2.5 .1 182,714 321,306 22,503,054 2,473,036 60,249 .3 .5 37.1 4.1 .1 136,034 369,296 16,102,495 1,868,809 11,574 .3 .8 32.9 3.8 (’ ) 0) 246,247 16,781,157 49,232 Per cent 100.0 6.6 .1 22.9 4.6 .8 4.6 1.3 1.1 0) .8 57.1 .2 24 Northwest Cooperative M ills (owned by four cooperatives) opened two new productive units during 1947— a feed mill and research laboratory in St. Paul and a fertilizer plant at Winona, Minn. Goods Produced Refined petroleum products and feed, seed, and fertilizer continued to account for over four-fifths (in value) of the total output of the cooperative plants. The dollar volume of both foods and chemical products declined as compared with 1946 (table 12); for all the other groups, a sizable increase was shown. T able A 46.4-percent increase in the output of pro ductive federations was shown, as compared with 28.3 percent for the productive departments of the wholesales. The latter, however, still ac counted for 63.2 percent of the total output in 1947. Whereas in 1946 one federation had an operat ing loss of over $100,000, the year of 1947 was one of uniformly profitable operation (table 13). From net earnings of $2,875,177 (5.3 percent on total business), $2,213,620 was paid to member associations on their patronage. The earnings of the wholesales’ productive departments are included in the total shown in table 9. 13.— Productive activities o f central cooperative organizations, 1946 and 1947 PRODU CTIVE DE PA RTM E N TS OF WHOLESALES Value of goods produced State, association, and goods produced 1947 Total.................................... Interregional wholesale. Regional wholesales___ District wholesales-----California—Associated Cooperatives: Mime ographing..................................................... Illinois—National Cooperatives.................... Flour......................................................... Chemicals................................................ Milking machines and coolers................ Hot-water heaters.................................... Indiana—Indiana Farm Bureau Cooperative Crude oil....... .......................................... Refined petroleum products.......... ........ Printing. ................................................. Chicks and eggs....................................... Feed.......................................................... Fertilizer................................................... Michigan—Northland Cooperative Federa tion.............................................................. Butter....................................................... M innesotaMidland Cooperative Wholesale............ Crude oil........................................... Refined petroleum products............ Lubricating oil.................................. Fly spray........................................... Feed...... ............................................ Farmers Union Central Exchange......... Crude oil............................................ Refined petroleum products............ Lubricating oil.................................. Minnesota Farm Bureau Service Co— Feed................................................... Fertilizer-.......................................... Range Cooperative Federation Meat products.................... Butter................................. Cheese................................. Milk (bottling). 1946 $81,245,730 1,746,382 78,345,967 1,153,381 $62,191,304 516,304 60,682,594 992,406 4D0 1,746,382 447,984 15,546 989,433 293,419 335 1516.304 1516.304 10,214,793 308,003 6,261,318 41,081 215,931 332,201 3,056,259 8 (2) 8,188,597 735,975 4,140,378 44,372 217,912 412,133 2,637,827 424,093 1 44,276 l 379,817 | 455,129 4,624,247 329,041 3,192,051 641,328 5,482 456,345 7,455,714 192,106 6,338,304 925,304 2,195,078 798,081 1,396,997 729,288 71,371 200,580 432,744 24,593 . 4.218.228 286,189 2.756.229 555,192 12,308 608,310 5,128,959 97,798 3,914,078 1,117,083 1,502,771 610,545 892,226 537,277 125,867 104,980 306,430 i Goods produced b y Cooperative Mills (productive federation taken over as department of National Cooperatives in 1947). Value of goods produced State, association, and goods produced 1947 Missouri—Consumers Cooperative Associ ation............................................................ Canned goods.......................................... Soft drinks............................................... Crude oil.................................................. Refined petroleum products................... Lubricating oil......................................... Grease..... ................................................. Lumber.................................................... Paint—..................................................... Printing................................................... Feed........................................................ Nebraska—Farmers Union State Exchange Feed and seed.......................................... Poultry and eggs..................................... New York—Eastern Cooperatives, Inc___ Coffee (roasted)..................................... Duplicating and offset printing.............. Ohio— Farm Bureau Cooperative Association. Refined petroleum products............ Chicks.......................................... . Fertilizer......................................... Ohio Farmers Grain and Supply Asso ciation.................................................. Feed................................................... Fertilizer............................................ Pennsylvania—Pennsylvania Farm Bureau Cooperative Association............................. Feed and seed......................................... Insecticides and fungicides..................... Chicks.. .................................................. Texas—Consumers Cooperatives AssociatedCrude oil.................................................. Refined petroleum products................... Feed......................................................... Washington—Pacific Supply Cooperative . . Fertilizer-................................................ Insecticides.............................................. Wisconsin—Central Cooperative WholesaleBakery products..................................... Coffee (roasted)....................................... Feed......................................................... 2 No data, 3 Including dehydrated potatoes. $22,432,741 320,469 13,490 2,655,806 11,376,242 4,717,792 323,716 802,907 272,345 92,763 1,857,211 335,947 I 220,104 > 115,843 | 238,747 224,043 14,704 1946 $19,832,477 3 828,853 13,444 1,493,531 10,718,280 3,219,157 191,210 309,059 119,074 69,810 2,870,059 (2) 172,326 164,196 8,130 8,562,774 4,616,226 89,315 3,857,233 7,303,709 3,989,000 80,837 3,233,872 519,435 345,993 173,442 479,457 375,765 103,692 3,887,379 3,784,628 37,354 65,397 .. 6,517,300 381,761 5,891,859 243,680 .. 7,837,093 6,940,473 502,411 .. 394,209 3,524,319 305,182 261,255 2,957,882 3,269,853 3,233,443 36,410 2,609,761 79,514 2,530,247 5,947,656 5,243,941 703,715 2,028,465 261,939 166,644 1,599,882 25 T able 13.— Productive activities o f central cooperative organizations, 1946 and 1947— Continued PRODU CTIVE FEDERATIONS 1947 386 Total...................................................................... 11 1946 1947 11 1,170,300 4 4 31 1,219,788 f 1,950,521 30 i 1,018,562 l 931,959 5 5 1,170,300 491,200 1,104,209 Patronage refunds Net earnings 1947 $2,875,177 20,612 1946 1947 1946 $1,031,796 $2,213,620 $926,123 25,464 59,578 13,746 48,078 1,219,788 1,104,209 53,515 50,543 53,515 50,543 1,287,411 1 795,563 } 1,950,521 491,848 1 1,287,411 248,565 124,105 200,136 102,591 8,343,849 767,355 7129,184 697,802 8,343,849 8,343,849 109,570 1 110, 908,680 109,570 7,458 3 3 4,352,946 3,261,358 5,806,508 3,719,567 494,013 246,157 433,148 213,708 3 3 1,781,068 1,644,525 1,781,068 1,644,525 70,158 17,377 70,158 17,377 937,194 4 2,429,002 436,158 724,823 1,268,021 ■2,753,434 937,194 28,398 2,065 28,398 2,065 1 4 125 45,000 (2) 535,748 401,446 (2) 45,000 (2) 4,500 (2) ( 2) ( 2) 13 4 13 4 3,771,464 13,450,140 2,353,630 11,066,384 7,388,738 13,973,828 3,001,252 11,066,384 501,349 524,055 86,330 569,247 231,525 370,593 491,340 2 2 820,917 757,041 820,917 791,002 3,513 23,437 263 20,187 46 f 1,496,081 472,687 46 iJ 781,533 l 241,861 740,382 278,387 337,681 124,314 •1,496,280 740,382 82,182 8,512 70,442 7,159 13 12 70,194 81,479 128,650 59,086 • 168,265 52,462 17,102 70,194 6,498 7,407 6,498 7,407 128,650 3,428 336 3,064 104 f 102 J 1 l 81,479 168,265 79,917 66,276 22,072 * Fiscal year ending Mar. 31,1948. * Fiscal year ending June 30. 8 Fiscal year ending Aug. 31. 7 Loss. Resources of Productive Federations All of the 16 productive federations furnished financial data. Assets totaled $32,191,922, or an average of $2,011,995 per association. Net worth totaled $11,298,012 and ranged from 9.4 to 94.2 percent of total assets, with an average o f 37.2 percent. Employment and Earnings in Central Cooperatives Some 7,600 workers were employed by the 66 central cooperatives which reported on this point (table 14). The annual pay roll totaled $18,314,581. For those reporting both employment and 1946 4,066,337 flO, 262,259 3 J 1947 486,957 ( 9,805,861 00 CO 1 1 1 1946 4,066,337 15 \ 1 Total amount of business 239 $47,175,137 $32,181,784 $53,740,713 $33,325,819 vi Canada—International Lumbering Associa tion (Vancouver, B. C.): Shingles and logs... Illinois—Central Farmers Fertilizer Co.* (Chi cago): Fertilizer............................................ ..... Indiana—Coop. Plant Foods® (Schererville): Fertilizer............................................................ Iowa—North Iowa Cooperative Processing Association6 (Manley)..................................... Feed............................................................... Crude soybean oil.......................................... Kansas—Nat’l Coop. Refinery Assn.® (M c Pherson)............................................................ Crude oil........................................................ Refined petroleum products.......................... Kentucky—Millers Creek Coop. (Paintsville): Coal_____ ________________________ _______ Maryland— Coop. Fertilizer Service® (Baltimore): Fertilizer..................................................... Fertilizer Mfg. Coop.® (Baltimore): Fer tilizer........................................................... M innesotaNorthwest Coop. Mills ®(St. Paul)............. Fertilizer.................................................. Seeds........................................................ Soybean meal and oil.............................. Coop. Printing Association8(Minneapolis): Printing....................................................... Ohio— Nat’l Farm M chy. Coop.® (Bellevue): Farm machinery......................................... Cooperative Mills * (Cincinnati): Feed....... Farm Bur. Chemical Coop. (Glendale): Fertilizer..................................................... Oklahoma—Producers Cooperative Oil Mill* (Oklahoma City).............................................. Feed................................................................ Cottonseed oil................................................ Cotton linters................................................. Washington—Grange Coop. Printing Assn.*® (Seattle): Printing.......................................... Wisconsin—Coop. Publishing Assn. (Superior). Printing.......................................................... Publications............... .................................. Books, office forms, etc................................. Value of own production Member associations State, association, and product 8 Fiscal years ending Apr. 30,1947 and 1948. 9 Fiscal year ending July 1. 10 Fiscal year ending Oct. 31. pay rolls, average annual earnings per employee were $2,466 or about 9.5 percent above the 1946 average. It should be pointed out that these figures cover a wide range of occupations, from office clerks to executives and include productive as well as distributive jobs. As in 1946, the highest average earnings reported were in the service federations; National Cooperatives showed the lowest average. The widest range in employment was shown in the regional wholesales. Three associations had fewer than 10 employees. At the other end of the scale were the large organizations which had gone into production and employed large numbers in both productive plants and distributive ware 26 houses. Four associations had over 400 em ployees each; of these, one had over 500 and one nearly 2,000. N o correlation appeared to exist between earn ings and either the size or the geographical loca tion of the business, in the case of the wholesales and service federations. Per capita annual earnings of employees of the productive federations averaged $2,341, or slightly over those in 1946. There seemed to be little or no occupational or geographical pattern. For example, in the fertilizer industry in which annual earnings ranged from $1,204 to $2,894, with an average of $2,055, the average annual payment per wage earner o f two plants in the same State varied by over $1,100. Average earnings were lowest in coal mining and highest in feed manu facture. In the printing industry, earnings ranged from $1,809 to $4,073 (a Pacific Coast plant) and averaged $2,316. T a b l e 14.— Employment and earnings in central cooperative organizations, 1943-4-7 Number of associations reporting Type of organization All reporting federations...................... Wholesales: Interregional _ ____ Regional.......................................... District........................................... Service federations................................ Productive federations.......................... Total em Total payroll, ployees, 1947 1947 Average earnings per employee in— 1947 1946 1945 1944 66 7,603 $18,314,581 $2,466 $2,252 $2,160 $2,064 1 22 7 10 16 231 5,429 137 61 1,745 438,001 13,345,381 261,625 184,832 4,084,742 1,900 2,508 2,422 3,123 2,341 2,478 2,294 2,049 2,710 2,313 2,124 1,963 2,459 2,364 2,037 1,808 1,997 2,259 1943 $2,024 1,502 1,893 Bureau of Labor Statistics Publications on Consumers’ Cooperatives1 Bulletin 665. Organization and management of consumers1 cooperatives and buying clubs. 25 cents. Bulletin 821. Developments in consumers' cooperative movement in 1944. 10 cents. Bulletin 843. Operations of consumers' cooperatives in 1944. 10 cents. Bulletin 850. Activities of credit unions in 1944. 10 cents. Bulletin 858. Organization and management of coopera tive and mutual housing associations. 20 cents. Bulletin 859. Developments in consumers' cooperative movement in 1945. 10 cents. Bulletin 890. Operations of consumers' cooperatives in 1945. 10 cents. Bulletin 894. Activities of credit unions in 1945. 5 cents. Bulletin 896. Nonprofit housing projects in the United States. 25 cents. Bulletin 904. Developments in the consumers' cooperative movement in 1946. Bulletin 922. Consumers' Cooperatives and credit unions: Operations in 1946. 15 cents. Bulletin 932. Developments in the consumers' cooperative movement in 1947. 15 cents. Bulletin 942. Cooperatives in postwar Europe: Survey of developments in Scandinavian countries and eastern, central and western Europe. 15 cents. Serial No. R. 1942. Operations of credit unions in 1947, (Free on request, from U. S. Bureau of Labor Statistics.) 1 For sale by Superintendent of Documents at prices noted. How to order publications: Address order to Superintendent of Documents, Government Printing Office, Washington 25, D. O., with remittance in check or money order; currency is sent at sender’s risk; postage stamps not acceptable. U. 9 . GOVERNMENT PRINTING OFFICE: 19 49