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U N IT E D S T A T E S D E P A R T M E N T OF L A B O R L. B. SCHWELLENBACH, Secretary BUREAU OF LABOR STATISTICS Ewan Clague, Commissioner + Operations o f Consumers’ Cooperatives in 1945 B u lle tin T^o. 890 For sale by the Superintendent o f Documents, U . S. Government Printing Office Washington 25, D . C. - Price 10 cents Letter o f Transmittal U nited States D epartment of L abor, B ureau of L abor Statistics, W ashington, D . C ., Decem ber 1 6, 1 94 6 . T he Secretary of L abor : I have the honor to transmit herewith the Bureau's annual report on the activities of consumers' cooperatives in 1945. It contains general estimates of membership and business of the various types of associations, local and federated, and detailed data on operations of the central organizations providing goods and services to the local associations and carrying on manufactures of numerous kinds. The report was prepared by Florence E. Parker, of the Bureau's Labor Eco nomics Staff. E wan C laque, C om m issioner. H o n . L . B . SCHWELLENBACH, Secretary o f Labor. Contents Page 1 Summary---------------- --------------------------------------------------------Activities of local cooperatives_____________________________ Distributive associations______________________________ 2 Insurance associations^__________________________________ 4 Activities of central organizations--------------------------------------Wholesale associations________________________________ Membership of wholesales________________________ Distributive and service facilities_________________ Distributive operations___________________________ Capital and resources_____________________________ Service operations of central cooperative organizations. Production by central cooperatives_______ J----------------Productive facilities_____________ _________________ Goods produced------- ------------------------ ------------------Employment and wages in central cooperatives________ 5 5 5 (in) 2 7 8 10 10 12 12 13 16 Bulletin ?$p. 890 o f the U nited States Bureau o f Labor Statistics Operations of Consumers’ Cooperatives in 1945 Sum m ary TH E year 1945 marked another high point in the consumers’ cooper ative movement as regards membership, business, and value of goods produced. The retail distributive volume reached an estimated $657,500,000 and the local service business totaled $12,356,000. The distributive and service business of central cooperatives also increased, to $186,600,000. Goods produced in cooperative factories of central federations during the year were valued at $60,577,789. Operating reports, however, indicate that both local cooperatives and their central federations found 1945 conditions more difficult than those in any of the war years, and earnings were generally some what smaller than in 1944. Among the retail associations, the urban stores (generally handling groceries and meats only) found gainful operation more difficult than did the farmers’ stores (which usually handle a wide variety of items). Petroleum associations on the whole had a relatively more successful year than did the store associations. Data on patronage refunds are available only for a small group of distributive associations; among these, the refunds of the store asso ciations averaged 4.1 percent of sales and those of the petroleum associations 7.8 percent of sales. “ Earnings’’ made by the retail associations which are members of wholesale associations include also the refunds which they received on their patronage of the wholesale. For 1945 the wholesales (district and regional) made refunds amounting to $7,105,077. Nearly 3,600 retail associations were affiliated with regional whole sales at the end of 1945, and 20 regional wholesales in turn were members of National Cooperatives, Inc. (the Nation-wide purchasing and productive federation). (l) 2 The estimated number, membership, and business of the various types of consum ed cooperatives in the United States, as of the end of 1945, are shown in table 1. T able 1.— M em bership and Business o f Consumers’ Cooperatives in 1945 f b y T yp e o f Association Type of association Total number of associations (estimated) Number of members (estimated) Amount of business (estimated) Local associations Retail distributive associations........... ............................. Stores and buying clubs............................................. Petroleum associations................................................ Other1- - ...................................................................... Service associations................. .... ..................................... Rooms and/or meals.................................................... Housing....................................................................... Medical and/or hospital care: On contract............................................................ Own facilities........................................................ Burial:* Complete funeral.................................................. Caskets only.......................................................... Other *........................ .............. ........................... ...... Electricity associations •.................................................... Telephone associations T_ -................................................ Credit unions*--............................................................... Insurance associations. - .................................................... Federations10 Wholesales: Interregional................................................................ Regional............... ....................................................... District............ ................................................. ......... Service federations............................................................. Productive federations....................................................... 4,550 3,000 1,500 50 602 180 60 1,760,000 825,000 910,000 25,000 369,200 18,500 2,700 $657,500,000 360,000,000 290,000,000 7,500,000 12,356,000 2,700,000 *1,600,000 55 20 100,000 51,000 1,500,000 2,500,000 36 6 245 850 5,000 8,882 2,000 35,500 1,500 160,000 •1,149,700 330,000 2,838,034 •10,550,000 300,000 6,000 3,750,000 60,960,000 5,485,000 210,885,783 200,000,000 1 23 11 22 15 20 3,649 234 1,500 195 6,755,900 11160,400.000 1111,217,661 8,250,000 20,013,000 i Such as consumers’ dairies, creameries, bakeries, propane gas associations, fuel yards, and lumber yards. * Gross income. * Local associations only; does not include associations of federated type (which are included with service federations) or funeral departments of store associations. 4 Such as cold-storage, water-supply, laundry and dry-cleaning, recreation, printing and publishing, etc., associations. * Data are for 1944. * Number of patrons. 7 Data are for 1936. 1Actual figures; not estimates. * Policyholders. 70 Figures do not in all cases agree with those in tables 3 and 6, for the reason that table 1 includes an allowance for nonreporting associations; tables 3 and 5 relate to reporting associations only. « Includes wholesale, retail, and service business; for own production, see tables 3 and 7. Activities o f Local Cooperatives DISTRIBUTIVE ASSOCIATIONS As no general inclusive survey of cooperatives was made by the Bureau of Labor Statistics for 1945, the following observations are based on a representative sample of some 1,500 associations. Their reports indicate that the petroleum associations had a relatively more successful year than the store associations and that, in the latter group, the urban associations (with a limited range of activities) found gainful operation more difficult than was the case with the rural associations (which usually handle a wider range of commodities). Some 86 percent of the petroleum associations reporting increased 3 their volume of business in 1945, as compared with slightly under 73 percent of the stores. Nearly four-fifths of the gasoline stations but not quite half of the stores had increased earnings that year as com pared with 1944. Fewer than 1 percent of the petroleum cooperatives reporting sustained a loss on the year’s operations, whereas among the stores 4.2 percent which had made earnings in 1944 went into the red in 1945 and an additional 8.4 percent had losses in both years. For the associations for which reports were received, net earnings for the store associations which made earnings averaged 5.8 percent of total business done; losses for those which could not make ends meet averaged 1.8 percent of sales. This was a less favorable showing than for the preceding year, when the corresponding figures were 4.6 and 1.5 percent. For the oil associations, earnings averaged 8.9 percent (7.8 percent in 1944) and losses 1.2 percent of sales (6.7 per cent in 1944). For local associations which are affiliated with cooperative whole sales, the “ earnings” or “ savings” reported include patronage refunds on their business with the wholesale. Among the retail associations for which data are at hand, the refunds from the wholesales ranged from 20 percent to nearly two-thirds of the retail associations’ total reported earnings. Information regarding the retail cooperatives’ patronage returns to their members is available for only 146 associations (100 petroleum cooperatives and 46 stores). The former refunded (in cash, shares, members’ equity credits, etc.) sums averaging 7.8 percent of sales, and the latter 4.1 percent of sales. For the whole group of 146 associations, the refunds totaled $2,158,310. Trend of development, 191+1-1+5.—Among the store associations, membership increased each year during the 5-year period 1941-45, the greatest rise occurring in 1944 (table 2), when practically all of the reporting associations took in new members, for an average in crease of 25.6 percent. The petroleum associations also showed membership gains each year, but these have been at a decreasing rate since 1943. Dollar volume of business for the stores, while increasing each year, has done so at a declining rate and with a smaller proportion of associations reporting such increases. Among the petroleum associa tions, on the other hand, only 1945 showed a drop in the rate of increase in sales. Notwithstanding the fact that some store associations had the most successful year in their history, as regards both amount of business and earnings, for the store group as a whole the operational results in 1945 were the poorest in the 5-year period; 12.6 percent of the reporting associations had a loss in both 1944 and 1945 or went from 4 a, gain in 1944 to a loss in 1945. (The corresponding figures were 8.4, 8.7, and 7.6 for the three previous periods.) This may have been due, to some degree, to commodity shortages (especially of meat) that, by cutting down volume without a corresponding reduction in operational expense, resulted in either reducing earnings or causing a loss. T able 2.— Trend o f Operations o f Retail Store and Petroleum Cooperatives, 1 9 4 2 -4 5 Petroleum associations Store associations Item 1945 Membership: Percent of increase over preceding year................. Percent reportingincrease over preceding jrear.......................... 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 loss............................... ...................... Loss to gain_____________________________ Percent reporting— Loss in both current and preceding years........ Increase in gain over preceding year......... . Decrease in gain from preceding year............ 1944 19^3 It 42 15.9 25.6 13.6 8.3 82.9 17.1 98.8 1.2 77.4 22.7 71.5 24.5 1944 1943 11.4 14.4 23.9 9.5 78.2 21.8 7979 20.1 74.5 25.5 73.8 26.2 1945 1942 11.5 19.6 28.8 30.8 10.7 22.6 19.1 13.6 72.9 27.1 80.3 19.7 84.7 15.3 90.8 0.2 86.3 13.7 89.4 10.6 71.5 28.5 78.9 21.1 4.2 10.7 6.4 4.2 6.8 5.3 5.4 4.9 .8 .7 .9 .4 1.8 2.0 1.2 8.4 49.4 27.2 2.0 62.3 25.1 1.9 51.7 34.3 2.2 60.5 17.9 .5 74.5 23.3 60.3 37.5 ___ 78.9 20.3 __ .4 64.7 31.7 i Based on identical associations reporting for both current and preceding year. INSURANCE ASSOCIATIONS Data available for a few of the insurance associations indicate continued progress. In Indiana the Farm Bureau Insurance Co. had premium income amounting to $1,317,500 ($1,114,700 in 1944) and total assets of $1,822,000. The (Ohio) Farm Bureau Mutual insurance companies, writing automobile, fire, and life insurance, had a very successful year. At the end of 1945, life insurance in force amounted to over 130 million dollars (104% million in 1944) and the fire insurance in force reached 602% million dollars. Assets of the three companies at the end of 1945 totaled $10,409,000 (fife), $3,290,000 (fire), and $18,867,000 (automobile)— substantial increases over the previous year. The unified insurance program 2 operating in Minnesota and Wisconsin increased its assets from $1,473,600 at the end of 1944 to $2,004,325 in 1945. Premium income amounted to $1,504,323 in 1945 as compared with $994,946 in 1944. More than 700,000 policies were in force in 1945. 8 Five companies—Cooperative Insurance Mutual and Cooperators Lite Mutual (Milwaukee), Amer ican Farmers Mutual and Cooperators Life Association (St. Paul), and Central Mutual Fire (Superior)— participate in this program. 5 In Nebraska the Farmers’ Union Insurance Co. (writing fire, windstorm, hail, and automobile insurance) reported insurance in force, on property, amounting to $73,800,000 in 1945. Claims paid during the year (its twenty-eighth year of operation) totaled $40,704. Activities o f Central Organizations Table 3 summarizes the activities of the various central commercial organizations in the consumers’ cooperative movement, which reported for 1945. T able 3.— Summary o f Activities o f Reporting Cooperative Distributive, Service, and Productive Federations in 1945 Wholesales Item All federations National Regional District 21 Number of federations reporting___ 1 11 67 Number of member associations___ 3,585 241 20 0) Amount of business.......................... $194,019,411 $6,755,900 $157,416,005 $11,217,941 Wholesale distributive............... 167,806,389 6,755,900 149,952,392 Ul, 093,097 fifirviflp. 3,625,189 4,285,897 119,844 Retail distributive _ _ _ 3,838,424 3,838,424 <3) Value of own production.................. 60,577,789 1,898,000 42,476,831 797,873 Net earnings, all departments......... 9,268,031 27.266 . 9,125,458 273,740 Patronage refunds, all departments. 27.266 6,869,737 7,366,426 235,340 s Service Productive federa federations tions * 13 11 1,177 187 $540,865 $18,088,700 540,865 23,681 14,082 15,405,085 ‘ 202,114 220,000 i Membership cannot be totaled, as some local associations are members of several federations. * Includes some retail business. * Included with wholesale business. ‘ Loss. W HOLESALE ASSOCIATIONS M em bership o f Wholesales Nearly 3,600 local associations were members of reporting regional wholesales at the end of 1945.3 Notwithstanding the fact that small decreases occurred in the membership of 6 associations, there was a combined increase of 7.4 percent, largely as a result of substantial numbers of new members added by 5 regionals. It should be pointed out that some of the regional wholesales, which from the table appear to be making little or no progress in bringing in new members, operate in one State only and the local associations each cover an entire county; the total number of the wholesale’s affiliates therefore cannot exceed the number of counties in the State. In such cases the only way in which the member associations can increase in number is by the forma tion of a new retail association in a county which previously had none. This is the situation in Indiana (where 86 of the 92 counties have associations affiliated with the wholesale), Ohio (all of the counties), and Pennsylvania (24 of 67 counties). Nineteen regionals estimate* * Not all of these are associations handling consumer goods; the number includes both some marketing associations and some retail associations which handle producer goods only, which are affiliated with and purchase their farm supplies from the regional wholesale. 723631-47----- 2 6 that their 3,3534ocal affiliates were serving 1,332,300 member families at the end of 1945. National Cooperatives accepted into membership during that year two regional wholesales, Farmers Union State Exchange (Nebraska) and Alberta Cooperative Wholesale (Canada). The United States members of National Cooperatives shown in table 4 are marked with an asterisk. T able 4.— M em bership o f Reporting Cooperative Wholesale Associations, 1944 and 1945 [Associations marked (**) are members of National Cooperatives *] Association of affiliated Year in Number associations which organ ized 1945 1944 AH associations: Interregional Regional___ District____ 20 3,685 241 18 3,343 245 20 18 Interregional Illinois: National Cooperatives (Chicago). 1933 Regional California: Associated Cooperatives (Oakland)*....................................... Illinois: Central States Cooperatives (Chicago)*................................................ Illinois Farm Supply Co. (Chicago)...................................................... Indiana: Indiana Farm Bureau Cooperative Association (Indianapolis)*., Michigan: Farm Bureau Services (Lansing)*........................................... Minnesota: Midland Cooperative Wholesale (Minneapolis)*................................. Farmers Union Central Exchange (St. Paul)*...................................... Minnesota Farm Bureau Service Co. (St. Paul)............................. ..... Missouri: Consumers Cooperative Association (Kansas City)*_________ Nebraska: Farmers Union State Exchange (Omaha)*............................... New York: Eastern Cooperative Wholesale (New York)*______________ Ohio: Farm Bureau Cooperative Association (Columbus)*............................ Ohio Farmers Grain & Supply Association (Fostoria)......................... Oregon: Oregon Grange Wholesale (Portland)........................................... Pennsylvania: Pennsylvania Farm Bureau Coop. Assn. (Harrisburg)*.. Texas: Consumers Cooperatives Associated (Amarillo)*........................... Utah: Utah Cooperative Association (Salt Lake City)*________ ________ Washington: Grange Cooperative Wholesale (Seattle)................... ........................... . Pacific Supply Cooperative (Walla Walla)*......................................... . Wisconsin: Central Cooperative Wholesale (Superior)*......................................... . Wisconsin Cooperative Farm Supply Co. (Madison).......................... . District Michigan: Cooperative Services (Bruce Crossing)....................... Northland Cooperative Federation (Rock)................ Minnesota: Trico Cooperative Oil Association (Cloquet).............. C-A-P Cooperative Oil Association (Kettle R iver)... Range Cooperative Federation (Virginia)................... Northern Cooperatives (Wadena)............................... Wisconsin: Fox River Valley Cooperative Wholesale (Appleton) A & B Cooperative Association (Ashland)................. Range Cooperative Services (Hurley)»...................... Cooperative Services (Maple)...................................... Price County Cooperative Oil Association (Prentice). 1939 30 31 1936 1927 1921 1920 105 162 86 129 101 140 86 139 1926 1927 1928 1928 1914 1929 383 400 70 907 330 172 328 400 63 792 350 166 1933 1929 1937 1934 1931 1935 89 177 13 24 158 18 86 170 14 23 130 12 1919 1933 55 101 59 99 1917 1923 164 12 140 14 11 12 1929 1929 1924 1933 20 18 26 90 18 1936 1930 1930 1928 1934 41 15 7 1932 1938 7 7 20 29 91 M2 10 7 6 *3 1 National Cooperatives also has 4 affiliates in Canada: Alberta Cooperative Wholesale, Manitoba Cooper ative Wholesale Association, Saskatchewan Federated Cooperatives, and United Farmers of Ontario. The other affiliate in the United States, not shown in this table because it is not a federation is Farmers Coop erative Exchange (Raleigh, N. C.). *1942. * Formerly Iron Cooperative Oil Association. 4No data. *1943. 7 Distributive and Service Facilities A number of the regional wholesales enlarged their services and facilities in 1945. Associated Cooperatives of California added an insurance department and began to handle petroleum products, elec trical appliances, farm supplies, and hardware. It also acquired a site on which to erect a headquarters and warehouse building. Central States Cooperatives in its annual report characterized 1945 as “ one of the toughest years” the association had ever faced. Con tinued losses by the branch warehouse in Detroit led to the closing of the warehouse, and although a site for a new building (to relieve the extreme congestion of the Chicago headquarters) was purchased, the association was unable to obtain permission to build. A new organi zation plan covering all operations was adopted; and a centralized bookkeeping service, designed to insure current knowledge as to the exact status and possible weaknesses of the local associations, was installed. The Indiana Farm Bureau Cooperative Association contracted for a new building to serve as a warehouse and to house a farm-machinery repair shop and a garage for the association's fleet of transport trucks. Light weight aluminum roofing was added to the commodities handled by the wholesale. Farm Bureau Services (Michigan) bought a warehouse in Traverse City, and at Emmett, M ich., built a warehouse and bought a bulk petroleum plant. Eastern Cooperative Wholesale added a depart ment of control, not only to do the wholesale's own accounting but also to furnish central bookkeeping and auditing for member associa tions. It also added a duplicating and offset-printing service. Farm Bureau Cooperative Association (Ohio) started two new services— animal health service, and appliance repairs— and added dairy equipment to the commodities handled. Ohio Farmers Grain and Supply Association purchased a grain elevator and enlarged its commodity coverage to include hydraulic tractor seats and a complete line of veterinary sulpha products. The Utah Cooperative Associa tion bought a headquarters building in which to carry on its ware housing activities and petroleum distribution. Central Cooperative Wholesale started a rock-wool insulation service for houses and au thorized a considerable expansion program. Among the district associations, Cooperative Services (Bruce Cross ing, M ich.) added farm machinery and an automobile-repair garage. C-A-P Cooperative Oil Association also opened a repair garage. Range Cooperative Federation (Virginia, Minn.) purchased a site on which to build a funeral home and laid plans for a branch mortuary in Hibbing. 8 Among the regional wholesales reporting, only 7 were operating any retail outlets; these had a total of 43 such outlets. One wholesale had 17, one had 12, one had 10, and the rest had one each. Altogether, 66 warehouses were reported by 10 regional associa tions. One association had 12 warehouses, another 9, a third 8, three associations had 5 each, four associations had 3 each, two had 2 each, and the remaining six had 1 each. Two additional regionals did no warehousing. Distributive Operations For the second successive year, all the reporting cooperative whole sales had an increase in their distributive business. For the national wholesale the increase was 2.7 percent; for the regional wholesales, 19.0 percent; and for the district associations, 6.4 percent. For 1944, the corresponding percentages were 60.5, 17.9, and 22.5 percent. Six of the regional wholesales had a business in 1945 exceeding 10 million dollars. Although several of the regionals showed decreased earnings in 1945, those for the group as a whole rose 18.0 percent and were at the rate of 4.8 percent of sales. A substantial part of the earnings arose from the productive operations. In cases in which the earnings of the service departments and productive enterprises of the wholesales were reported separately, they are included with the figures shown in tables 6 and 7. In many cases, however, such figures are not separable from the distributive business, in which event the earnings from all departments are shown in table 5. T able 5.— Distributive Business, N et Earnings, and Patronage Refunds o f Cooperative Wholesales, 1944 and 1945 Amount of business1 Net earnings Patronage refunds * Association All associations: Interregional................. Regional: Wholesale business. Retail business___ District— .................... 1945 1944 $6,755,900 $6,577,200 1945 $7,008 1944 $36,524 149,952,392 125,044,547 7,120,159 6,032,145 3,838,424 3,552,238 80,875 101,386 262,792 11,098,097 10,433,579 209,693 1945 $7,008 1944 $36,524 6,362,236 6,055,484 32,625 39,000 234,392 198,149 Interregional 6,755,900 Illinois: National Cooperatives. 6,577,200 7,008 36,524 7,008 36,524 Regional California: Associated Cooperatives Illinois: Central States Cooperatives......... Illinois Farm Supply Co............... Indiana: Farm Bureau Cooperative Association......................................... Michigan: Farm Bureau Services....... f \ 3264,608 4170,840 3200,764 4150,000 } *21,757 780,466 759,670 17,439,004 14,931,151 7,911 704,258 3,221 11,858 580,537 *10,486 7,911 601,097 2,185 11,858 468,561 14,294,376 10,571,397 *1,093,673 •1,014,750 *927,549 *911,819 / 36,863,156 >6,208,711 >294,507 3 246,266 \ 4 2,194,571 42,289,453 4 36,906 4 62,593 } *300,139 *294,214 1Except where otherwise indicated, figures relate to wholesale distributive business. * Includes all refunds declared regardless of form in which paid (cash, shares,members* equity credits,etc.). * W holesale business. 4Retail business. * Includes service departments. « Includes service and productive departments. 9 T able 5.— Distributive Business, N et Earnings, and Patronage Refunds o f Cooperative Wholesales, 1944 and 1945 — Continued Amount of business Net earnings Patronage refunds Association 1945 1944 1945 1944 1945 1944 Regional—Continued Minnesota: Midland Cooperative Wholesale.. Fanners Union Central Exchange. Minn. Farm Bureau Service C o .. Missouri: Consumers Cooperative Association........................................ Nebraska: Farmers Union State Ex change................................................ New York: Eastern Cooperative Wholesale.......................................... Ohio: Farm Bureau Cooperative Asso ciation.......................................... Ohio Farmers Grain & Supply Association.................................. Oregon: Oregon Grange Wholesale... Pennsylvania: Pennsylvania Farm Bureau Cooperative Association___ Texas: Consumers Cooperatives As sociated........ ..................................... Utah: Utah Cooperative Association. Washington: Grange Cooperative Wholesale__ Pacific Supply Cooperative........... Wisconsin: Central Cooperative Wholesale... Wisconsin Cooperative Farm Supply Co. $11,476,146 $10,176,463 •$718,402 •$837,475 •$574,167 •$790,292 14,064,094 12,135,454 71,640,239 978,961 7 1,126,540 934,485 1,680,359 1,441,260 83,120 91,099 82,694 67,541 /8 21,911,031 815,550,607 8 579,114 8236,976 }? 1,153.487 71,130,454 \ * 326,407 4305,591 < 1,141 <8,097 1 8 2,869,889 3 2,452,453 8188,768 3163,187 J 8 158,866 *100,000 \ 41,146,606 <1,112,785 <42,828 838,793 8 32,625 4 39,000 4,656,038 4,091,066 21,784,052 18,693,398 56,839 15,096 « 509,727 •547,771 1,698,905 659,035 1,521,972 549,791 756,607 37,968 7 63,635 9,125,149 8,318,452 250,749 3,490,385 304,397 2,594,227 255,712 71,325 11,797 3,438,960 4,748,542 3,282,095 4,575,308 9,900 •262,172 •369,390 743,356 36,346 750,038 48,724 351,580 142,182 205,473 76,234 11,797 7150,156 11,207 71,795 11,208 48,553 «167,197 «168,148 •450,096 •413,332 6,692,997 5,733,484 «167,798 •136,047 1,710,903 8 1,001,212 10,307 •35,622 District Michigan: 6,524 Cooperative Services..................... 140,568 161,653 Northland Cooperative Federa 322,577 319,325 1,014 tion.............................................. Minnesota: 249,411 233,165 Trico Cooperative Oil Association. 18,149 123,204 C-A-P Cooperative Oil Association.. 15,606 144,395 Range Cooperative Federation— 1,161,825 1,154,334 •35,505 Northern Cooperatives®............... • 7,801,375 «7,384,880 •108,901 Wisconsin: Fox River Valley Cooperative 622,451 10549,019 Wholesale........................... ........ 30,502 155,392 126,898 12,917 A & B Cooperative A ssociation8,956 240,280 200,408 Range Cooperative Services11----16,212 153,378 Cooperative Services— ............... 170,908 Price County Cooperative Oil 3,184 48,400 Association................................. 67,830 45,784 »167,197 8168,148 « 359,256 •282,882 •167,383 734,261 • 114,972 721,545 6,286 4,582 4,344 1,368 1,014 1,368 22,482 11,041 •23,674 •67,704 18,149 15,606 •30,365 •101,858 22,482 10,226 « 23,711 •64,045 W40,843 12,259 7,716 14,124 29,449 12,917 (12) 15,130 » 39,684 11,879 6,952 13,458 2,196 (13) (“ ) * Wholesale business. * Retail business. * Includes service departments. e Includes service and productive departments. 7Includes productive departments. 81943; no report for 1944. * This association was previously classed as a “ .service” organization; however, its distributive business now far outweighs its service business and it will hereafter be included with the distributive associations. 10 1942; no report for 1943 or 1944. 11 Formerly Iron Cooperative Oil Association. » 6J4 percent on petroleum products, 2 percent on warehouse and service patronage; amount not reported. I®3 percent; amount not reported. No data. The same applies to an even greater extent to the patronage refunds which (as noted in table 5) in many cases include earnings— often exceeding in amount those made in the distributive operations— shown by the wholesales’ factories. 10 Tabulation of data on volume of business done in various broad commodity divisions, available for 16 of the regional wholesales and 6 of the district associations, revealed that petroleum products accounted for the greatest amount of wholesale business, followed by farm supplies. Food products, household supplies and appliances, and clothing together formed slightly less than 10 percent of the total business of the regional wholesales. Capital and Resources New enterprises— especially the productive plants—in the coopera tive movement are being financed largely through the sale of preferred stock which carries no voting privileges but has preference as regards earnings. Of the 21 regional associations reporting on capital, 13 had issued preferred stock; these 13 associations had outstanding preferred stock totaling $11,361,848; their common stock (owned only by member associations) amounted to $6,104,360. Three associations were nonstock organizations. The common stock of the remaining 5 associations totaled $1,751,248. None of the district wholesales were using preferred stock; the aggregate of common stock of the 7 associations reporting on this point was $310,787. The total assets of 20 regionals amounted to $53,543,844, and those of 9 district associations to $1,156,386. The ratio of current assets to total assets varied widely, ranging among the regionals from 30.6 to 83.2 percent and among the district associations from 11.8 to 71.8 percent. The averages were 59.1 and 47.4 percent, respectively. The ratio of current assets to current liabilities was equally variable, ranging in the regional wholesales from 1.4:1 to 20.2:1 and in the district associations from 0.6:1 to 7.0:1. For the two groups the averages were 1.8:1 and 4.4:1. Information on net worth was available for 12 regional and 6 district associations. In these, the member equities (ratio of net worth to total liabilities) ranged from 40.4 to 90.4 percent and from 35.5 to 93.4 percent. The averages were 41.9 and 50.0 percent. SERVICE OPERATIONS OF CENTRAL COOPERATIVE ORGANIZATIONS Service business for the associations reporting for 1945 totaled $4,285,898, of which an overwhelming proportion (84.6 percent) was done by the regional wholesales. Service federations and district wholesales accounted for 12.6 and 2.8 percent, respectively. Business done in the different types of service rendered by whole sales and by service federations in 1945 is shown on page 11. 11 Wholesale service departments Service federations All types of service__________________________________ $3, 745, 033 Funeral service______________________________________ Automobile repair___________________________________ Recreation_____________ ________ ______________ _____ Insurance, bonds, etc_______ _______ ________________ Auditing, accounting, etc____________________________ Financing and credit________________________________ Management, business advice, and planning_________ Transport (truck, tugboat, pipeline, and tank car)____ Millwright service___________________________________ Printing____________________________________________ Other (not specified)________________________________ $540, 865 40, 913 97, 337 4,846 61, 083 73, 770 68, 702 60, 585 3, 032, 222 3, 029 112, 270 185, 000 93, 813 61, 710 71, 660 16, 412 302, 546 The kinds and amount of service business done by the individual wholesales and service federations are given in table 6. Earnings for the wholesales, where they were separable from the distributive business, are also shown. T a b l e 6 .— Service Activities o f Central Cooperative Organizations, 1945 SERVICE DEPARTMENTS OF WHOLESALES Association T ota l--.......................... Regional wholesales. District wholesales.. Amount of busiService (gross in come) Net earn ings Patron age re funds $3,745,033 $549,409 $480,502 3,625,189 543,783 474,876 119,844 5,626 5,626 0 0 8,353 California: Associated Cooperatives...................... Insurance (agency)............ 0 Illinois: Central States Cooperatives............................ Auditing and accounting. _ 0) Illinois Farm Supply Co................................. Transport (by truck and 1,743,900 543,052 474,876 towboat). 17,108 Indiana: Farm Bureau Cooperative Association. _ Auditing................. .......... 257,318 Trucking......... .... ............. Auto repair...................... 25,320 47,828 Insurance (agency)............ 68,702 Finance (or credit)............ 316 Pipeline service................. Other......................... ........ 302,546 12,189 Management..................... Michigan: Farm Bureau Services. 1,136 0 3,029 Millwright service_______ Minnesota: Trucking.............. 87,172 Midland Cooperative Wholesale. 112,238 Pipeline service___ 62,554 Tank-car service - .. Trucking................ 21,067 C -A -P Cooperative Oil Association5,626 Auto repair............ 48,116 Range Cooperative Federation.......... 4,902 Insurance (agency) Mortuary............... 40.913 4,846 Recreation............. 27,132 Missouri: Consigners Cooperative Association . . . Auditing_________ ______ 0 421,599 Trucking............................ 148,736 Ohio: Farm Bureau Cooperative Association....... Trucking............................ 0) Planning and specifications. 48,396 11.913 Utah: Utah Cooperative Association___________ Trucking............................ Washington: 4,092 Grange Cooperative Wholesale_____________ Auditing_______________ 165,409 Pacific Supply Cooperative............................. Trucking...... ..................... 0 23,901 Auto repair......... .............. 24,279 2405 Wisconsin: Central Cooperative Wholesale.......... Auditing...................... 0 0 0 0 0 0 0 0 0 0 1Included with distributive business (table 5). 0 12 T able 6.— Service Activities o f Central Cooperative Organizations, 1945 — Continued SERVICE FEDERATIONS Association, and year established Total . _ Amount Pa Mem ber of busi Net earn tron asso ness age re cia (gross ings funds tions income) Service ______ $540,865 $23,681 $14,082 1,177 Minnesota: Federated Co-ops of East Central Minnesota (1942). 74,569 4,435 Funeral service, insurance (a gen cy), tru ck in g , spray painting, house insulation. Northland Cooperative Mortuary (1936)__ Funeral service.................. 18,175 . 2,279 63,642 2,541 Oooperative Auditing Service (1935)______ A uditing, accounting, business advisory, and tax service. Cooperative Press (1939) _ ._ . _, Purchase of office supplies 16,412 827 and printing. Farmers Union Agencv (1940)___________ Insurance (agency)______ 185,000 5,606 Farmers Union Cooperative Credit Assn. Loans to local cooperatives. 49,531 3,852 (1938). Montana: Farmers Union Carriers (1939)____ Trneking__ _ _ _ _ _ 15,304 2 2,351 Nebraska: Farmers Union Non-stock Co-op Trans Trucking of motor fuels. 6,615 2214 port Assn. (1943). Trucking Farmers Union Nonstock Coop. Trans 34,755 9,475 port Assn. (1939). North Dakota: Farmers Union Transport Trucking of petroleum 14,985 2 5,527 products. Co. (1943). South Dakota: Equity Audit Co. (1917)......... Auditing, accounting, and 30,172 1,708 business advisory service. Wisconsin: Valley Cooperative Services (1943) _ Funeral service.................. 19,526 953 Central Finance (1940) _____ Financing sales contracts, 12,179 97 chattel mortgages, etc. 2Loss. 4,099 23 1,837 2,287 21 436 704 16 3,339 450 151 15 2 <*> 4 17 1,216 35 600 5 2 3 No data, The capitalization of the service federations was small. Twelve associations reporting had aggregate assets of $432,290, or $36,025 per association. However, their net worth was high, averaging 83.0 percent and ranging from 15.6 to 100.0 percent. Of the 11 associa tions furnishing information, 6 had a net worth amounting to 70.0 percent or more of their total liabilities. PRODUCTION B Y CEN TRAL COOPERATIVES Productive Facilities The Illinois Farm Supply Co. acquired a feed mill at Benton, 111., and a petroleum storage tank. The Indiana Farm Bureau Coopera tive Association built a cracking plant at its petroleum refinery at M t. Vernon, Ind., and purchased 700 acres of oil-bearing land in Illinois, with several wells and offset locations; a third lumber mill, at Benton, Ark., was also bought, along with 3,200 acres of woodland and timber rights on 9,000 acres additional. Farm Bureau Services (Michigan) bought land at Lansing which is to be used as a site for manufacturing facilities. The Minnesota Farm Bureau Service Co. added a new fertilizer plant during the year. 13 In Ohio a second petroleum refinery, a controlling interest in a pipeline, a feed mill, and a grain elevator were acquired by Farm Bureau Cooperative Association. Consumers Cooperatives Asso ciated (Texas) bought a petroleum refinery at Levelland, with topping and cracking units having a capacity of 5,500 barrels per day. Pacific Supply Cooperative (Washington) built a plant in Portland, Oreg., to manufacture fertilizer, fungicides, and insecticides, which started operations in November 1945. Because of difficulties in obtaining labor, coal mining was discontinued. The International Lumbering Association added logging operations to its activities. Cooperative Plant Foods increased its facilities by a new $500,000 acidulating plant, with a capacity of 70,000 tons annually. The Grange Cooperative Printing Association (Washing ton) bought an offset duplicator. The plant of Atlantic Seed Stocks Cooperative, at Ellicott City, M d., burned to the ground in 1945, forcing cessation of operations during the year. Goods Produced Cooperative production totaled $60,577,789, of which the largest proportion (70.2 percent) came from the productive departments of the regional wholesales and 25.4 percent from productive federations owned jointly by varying numbers of the regional wholesales. Goods produced by National Cooperatives and by district wholesales accounted for 3.1 and 1.3 percent of the total, respectively. Reflecting the cumulative acquisition of oil-bearing land and petroleum refineries during the past few years, petroleum products accounted for the largest output in 1945 (52.3 percent of the total). The next group was that including feed, seed, and fertilizer (37.1 per cent). Food products, although increasing somewhat over 1944, nevertheless declined in relation to total cooperative production, accounting for only 3.5 percent in 1945 as compared with 4.2 percent in the preceding year. The value of goods produced in 1945 as compared with the two preceding years, by commodity groups, is shown in table 7. 14 T able 7.— Production b y Central Cooperatives in 1945, as Compared W ith 1944 and 1943, by Commodity Groups 1945 Commodity group Total Amount All products. Depart^ ments or subsid Per ofiaries wholecent 1944: Total Productive federa tions Amount 1943: Total Per cent Amount Per cent $60,577,789 100.0 $45,172,704 $15,405,085 $48,999,183 100.0 $29,431,499 100.0 Food products.......................... 2,120,517 3.5 1,955,310 40,000 40,000 Chemical products................... 59,610 .1 59.610 Coal........................................... Crude oil................................... 1,438,027 2.4 1,438,027 Refined petroleum products— 25,852,711 42.7 20,253,886 Lubricating oil...................... .. 4,369,325 7.2 4,369,325 183,023 183,023 .3 Grease....................................... .4 80,732 249,239 Printing.................................... 71,380 .1 71,380 Paint,....................................... 693,598 1.1 40,213 Lumber and shingles............... 321,306 .5 321,306 Poultry and poultry products. . .2 142,714 142,714 Insecticides.............................. Feed, seed, and fertilizer.......... 22,503,054 37.1 14,344,567 Farm machinery...................... 2,473,036 4.1 1,858,000 .1 60,249 14.611 Other........................................ 165,207 5,598,825 168,507 653,"385 8,158,487 615,036 45,638 2,073,462 4.2 1,958,036 38,000 .1 29,274 .1 721,050 1.5 31,340 21,165,002 43.2 6,743,901 22.9 4,659,465 9.5 1,358,479 4.6 226,374 .5 223,864 .8 192,793 .4 326,959 1.1 81,689 1,351,782 1,361,866 2.8 360,502 1.3 369,296 246,247 .8 98,034 .2 0) 0) 16,102,495 32.9 16,781,157 57.1 L, 868,809 3.8 ..... 11,574 (2) 49,232 .8 1 No data. 8 Less than 0.1 of 1 percent. Although the wholesales have generally found production a profit able field, in 1945 some of the productive federations sustained heavy losses. Of 11 federations reporting, 7 had combined earnings of $259,556. However, because of the losses of the other 4, amounting to $461,670, the whole productive-federation group showed a net loss of $202,114. Earnings, for the federations that had such, amounted to 3.1 percent on their total business; for those “ in the red,” losses were at the rate of 6.5 percent. Of 7 federations for which data are available for both 1944 and 1945, 2 had a loss in both years, 2 which made a gain in 1944 sustained a loss in 1945, 2 had larger earnings in 1945 than in 1944 and 1 had smaller earnings. The value of the various products of the factories of the individual wholesales and of the productive federations is shown in table 8. 15 T a b l e 8.— Pioduction by Central Cooperative Organizations, 1945 PRODUCTIVE DEPARTMENTS OF WHOLESALES Association Value of goods produced Goods produced Total Regional wholesales __ District wholesales Illinois: National Cooperatives_______________ Chemical products and milking machines. Indiana: Indiana Farm Bureau Cooperative Crude oil___ ______ _____ Association. Refined petroleum prod ucts. Printing Fertilizer Chicks and eggs_____ _ Michigan: Northland Cooperative Federation.. Butter and cheese.............. Minnesota: Midland Cooperative Wholesale__ Refined petroleum prod ucts. Lubricating oil Feed _ . ___ Minnesota Farm Bureau Service Co______ Range Cooperative Federation _ . _ . Feed _. _ Fertilizer _ _ M eat products. ... _ Rutter ... _ Till hrieating oil Grease. . . Paint ___ _ Lumber _ _ _ _____ _ _ Printing. _____ _________ Canned goods...................... Dehydrated potatoes_____ Soft drinks _ _ __ Feed.......................... .............. Ohio: Farm Bureau Cooperative Association____ Refined petroleum prod ucts. Texas: Consumers Cooperatives Associated__ Washington! Pacific Supply Cooperative_____ Wisconsin: Fertilizer Chicks Feed and seed __ _ Fertilizer....... .............. . Refined petroleum prod ucts. Coal __ Feed ___ _ Insecticides ^ __ ... _ ___ Coffee (roasted) _____ Bakery products Feed __ ____ Wisconsin Cooperative Farm Supply C o... ........ do........................................ Central Cooperative Wholesale „_ _ _ _. . i Included with distributive operations (table 5). 1,898,000 age re funds 20,258 20,258 620,668 2,649,558 28,242 2,422,320 237,486 260,596 0) 5,322 (*) 5,322 2,514,704 388,776 563,594 22, 766 2,948,022 Fly spray________ ____ Refined petroleum prod ucts. Lubricating oil________ _ Cheese______ __________ Missouri: Consumers Cooperative Association^. Crude oil.................... ...... Refined petroleum prod ucts. Ohio Farmers Grain & Supply Association.. tron $45,172,704 $1,406,221 $25,580 1,898,000 20,258 20,258 42,476,831 1,380,641 797,873 5,322 5,322 Interregional wholesale................................. Farmers Union Central Exchange Pa Net earnings 714,386 166,365 469,296 125,867 104,980 306,430 817,359 9,003,333 3,266,163 183,023 71,380 40,213 52,490 233,144 572,251 14,611 918,266 0) 0) 0) 0) J 0) 0) (9 0) 1,187,393 0) > 0) 0) ■ 0) 0) (l) 0) (9 1,334,557 2,558,377 83,820 682,688 274,645 1,803,712 59,610 2,785,671 119,948 134,577 217,465 2,357,011 1,146,334 193,248 1 0) 1 (,) 39,177 0) 0) 0) 16 T able 8.— Production by Central Cooperative Organizations 1945 — Continued PRODUCTIVE FEDERATIONS Association, year operations began, and product Total _ _ _ -_ Value of own pro-, duction Mem Total Pa ber as earn tronage amount of Netings soci business refunds ations U5,405,085 $18 " to 2 $202,114 $220,000 187 British Columbia (Can.): Internat’l Lumbering Assn. (1945): Phingies . ..^ _ __ TiOgS~ , Indiana: Cooperative Mills (1933): Flour................................................................ Feed Farm Bur. Milling Co. (1933): Feed Coop. Plant Foods (1944): Fertilizer.................... Nat’l Farm Machinery Coop. (1940): Farm machinery_________________________ W ar nontracts Iowa: North Iowa Coop. Processing Assn (1944): Crude oils for feeds__________________________ Feed_______________________________________ Kansas: Nat’l Coop. Refinery Assn (1943): Refined petroleum products_______ _____ ____ __________ Maryland: Fertilizer Mfg. Coop. (1938): Fertilizer... Ohio: Farm Bur. Chemical Coop. (1945): Fertilizer.. Washington: Grange Coop. Printing Assn (1938): Printing__ _________________ _______________ Wisconsin: Coop. Publishing Assn. (1934): Printing........ ..................................................... Publications Books, office forms, etc _. . ...... 364,272 289,113 } 689,361 *30,884 — — — 11 165,207 } 34,509 3,885,131 787,807 482,259 3,885,131 787,307 2 7,967 131,206 131,206 26,890 10 4 4 615,036 } 45,638 660,674 >304,284 1,092,730 427,683 665,047 } 5,598,825 1,644,525 713,785 53,878 46,690 ) 50,728 f 17,211 12 28 43,533 35,859 7,921,657 *118,535 1,644,525 17,377 30,989 755,549 17,377 27,739 3 53,878 4,235 4,235 12 114,629 5,326 3,584 90 5 2 i Included with distributive operations (table * Loss. As would be expected, the productive federations required consider ably more capital than the service federations. The total assets of the 11 associations reporting on this point amounted to $13,640,953, or $1,240,088 per association. In 10 associations the net worth ranged from 13.5 to 98.0 percent of total liabilities. One association had a deficit amounting to 2.2 percent of liabilities. For the whole group, net worth averaged 35.5 percent. EMPLOYMENT AND W AGES IN CENTRAL COOPERATIVES Table 9 shows the average number of employees and total pay roll of the wholesales and other federations in 1945. T able 9.— Em ploym ent and Earnings in Central Cooperative Organizations, 1 9 4 3 -4 5 Average earnings per Number num employee1in— of associa Total wages ber of em Total tions re paid, 1945 ployees porting 1944 1945 1943 Type of organization All central federations _ _ Wholesales: Regional District. _ Service federations productive federations __ 51 5,185 $11,18'), 286 20 9 11 11 4,174 150 59 802 8,861,933 29 i, 398 135,263 1,895,692 $2,160 $2,064 2,124 1,963 2,459 2,364 2,037 1,808 1,997 2,259 i Based upon associations that reported both number of employees and amount paid in wages. * No data. U. S. GOVERNMENT PRINTING OFFICE: 19 47 $2,024 1,502 1,893 (2)
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