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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 O F L A B O R L. B. SCHWELLENBACH, Secretary BUREAU OF LABOR STATISTICS Ewan Clague, Commissioner Consumers’ Cooperatives and Credit Unions: Operations in 1946 Bulletin 7s£o. 922 For sale by the Superintendent o f Documents, U. S. Governm ent Printing Office Washington 25, D . C. - Price 13 cents Letter of Transmittal U n it e d States D epartm ent B ureau f op of L abor L abor, S t a tt iiss ttiicc s , Washington, D. C., December 17,1 17, 1947. The Secretary of L abor: activities of consumers’ cooperatives in 1946. It contains general estimates of membership and business of the various types of associations, local and factures of numerous kinds. The report was prepared by Florence E. Parker, of the Bureau’s Labor Economics Staff. E w a n C l a g u e , Commissioner. Hon. L. B. S C H W E L L E N B A C H , Secretary of Labor. Contents P a r t 1.-— C o n s u m e r s ’ C o o p e r a t i v e s Page Progress in 1946______________________________________________________ Local distributive cooperatives________________________________________ Trend of development, 1941-46__________________________________ Central organizations_________________________________________________ Wholesale associations____________________________________________ Membership---------------------------------------------Distributive facilities________________________________________ Service facilities____ ;------ ---------------------------------------------------Distributive operations_____________________________________ Capital and resources______________________________________ Services of central cooperatives----------------------------------------------------Business--------------------------------------------------Resources of service federations_____________________________ Membership of service federations__________________________ Production by central cooperatives--------------------------------------------Expansion of productive facilities___________________________ (H ods produced_____________________________________________ Resources of productive federations_________________________ Membership of productive federations---------------------------------Employment and wages in central organizations_________________ P art 2 .— C r e d it 3 4 5 5 7 7 8 9 9 9 ll 13 13 14 U n io n s Progress in 1946------------------------------------------------------------------------------Statistics of operation, 1945 and 1946-----------------------------------------------Trend of development, 1925-46--------------------------------------------------------Legislation in 1946--------------------------------------------------State legislation________________________________________________ Federal legislation----------------------------------------------------------------------- ii 1 2 3 3 3 15 16 18 18 18 19 Consumers’ Cooperatives and Credit U nions: Operations in 1946 Part 1.— Consumers* Cooperatives Progress in 1946 B o t h m e m b e r s h i p a n d b u s i n e s s of consumers’ cooperatives reached an all-time peak in 1946, in spite o f difficulties. Ketail distributive business exceeded three-fourths of a billion dollars and the service business of local associations surpassed 15 million dollars. The stores as a group showed the greatest increase in dollar volume of business since 1942; and the petroleum associations had the greatest increase since 1941, reflecting undoubtedly the removal of rationing restrictions and the increasing supply of automobile tires and ac cessories as well as the rising price level. Operating results for the stores in 1946 showed a great improvement over 1945. Over 90 percent o f the reporting associations had earnings on the year’s operations (87.3 in 1945); of these, 62.5 percent had earnings greater than in 1945. The petroleum associations as a group have been consistently successful as regards earnings; 1946 showed even better results than the previous years. Some o f the earnings of the retail associations are attributable, of course, not to their own opera tions, but are received as patronage refunds on the goods which they purchase from the wholesale associations. Such refunds declared on the 1946 business of regional wholesales totaled $8,215,096, which will be added to the associations’ own earnings and distributed by them to their individ ual members. Over 4,000 local associations were members of regional wholesales at the end of 1946, and 22 of the wholesales were, in turn, affiliated with Na tional Cooperatives. About 280 associations were members of district wholesales; most of these were affiliates of the regionals as well. Among the commercial federations, the regional and district wholesales had a distributive and service business exceeding 220 million dollars (as compared with about 172 million dollars in 1945). Earnings of regional wholesales showed an in crease of nearly 88 percent over those of 1945 and exceeded 13 million dollars. Patronage refunds to the member associations were 35 percent higher than in 1945. Improved financial status was also evident in the wholesales’ reports, with nota ble increases in net worth; but this was accom panied by somewhat lower ratios of current assets to total liabilities and to current liabilities. One of the outstanding developments of the past few years has been the rapid expansion of production. The central organizations (whole sales and productive federations) in 1946 pro duced in their own plants commodities valued at more than 95% million dollars, as compared with about 60% million in 1945 and less than 30 million in 1943.1 Member equities (net worth) of these associations showed considerable increase over the previous year. Estimates of membership and business of the various types of consumers’ cooperatives in 1946 are shown in table 1. It should be emphasized that, in this table, the associations are classified according to their main lines of business. Thus, an association running a store, and also handling petroleum products or operating a mortuary, is here classified as a “ store association” if the store business constitutes its main activity. The table therefore does not indicate the extent of 1 In addition, cooperatives also sell many goods, under the “ co-op label,” which are not cooperatively produced but are packed by private manufac turers according to cooperative specifications, under the label. l cooperative activity in any particular line. Thus, cold-storage plants are operated not only by the independent associations shown under this classi fication in the table, but also by other types of associations such as stores, petroleum associa tions, creameries, etc. Funeral service is pro vided by local funeral associations, federations, and funeral departments of some store associations. T able 1.— Estimated membership and business o f consum ers’ cooperatives in 1 9 4 0 , by type of association Type of association Total number of asso ciations Number of members 3,000 1,500 65 1,080,000 965,000 26,000 $500,000,000 300,000,000 9,225,000 200 22,000 10,000 3,600,000 *3,000,000 Amount of business 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: 4 Complete funeral................. Caskets only......................... Cold storage6............................ . Other •......................................... Electric light and power associar tions7________________ _______ Telephone associations (mutual and cooperative)................................... Credit unions9................. ................ Insurance associations....................... 125 55 50 110,000 1,750,000 55,700 8 4,000,000 40 4 175 125 36,000 1,700 87,500 25,000 830 8 1,596,000 84,930,000 33,000 8,973 675,000 3,013,792 18 11, 000,000 11 205,000,000 2,000 750,000 10, 000,000 289,993,160 Member associations Federations Wholesales: Interregional............................... Regional...................................... District........ ............................... Service.................. ............................. Productive............................- ........... 310,000 6,500 2, 000,000 1 25 11 18 15 22 4,025 280 1,498 253 12 16,900,000 212,450,000 12 9,650,000 842,700 38,350,900 1 Such as consumers’ dairies, creameries, bakeries, fuel yards, lumber yards, etc. 2 Gross income; excludes new associations which had no income. 2 Excluding new associations with no income. 4 Local associations only; excludes associations of federated type (which are included with service federations) or funeral departments of store asso ciations. •Excludes cold-storage departments of other types of associations. •Such as water supply, cleaning and dyeing, recreation, broadcasting, printing and publishing, nursery schools, etc. 7 Mostly REA associations, data for which were supplied by the Rural Electrification Administration. 8 Number of patrons. •Actual figures; not estimates. 40 Policyholders. 11 Premium income. 12 Includes wholesale, retail, and service business. Local Distributive Cooperatives Reports to the Bureau of Labor Statistics from local associations and comments by the regional wholesales indicate the progress made by the consumers* cooperatives in 1946. Sales per asso ciation in the Midland Cooperative Wholesale area averaged $117,468 for the oil associations and $781,531 for the food stores, with average net 2 earnings o f 5.82 percent.2 Farther south in the same geographic region, Consumers Cooperative Association (Kansas City, M o.) reported a 15percent increase in membership and a 30-percent increase in business among those of its member associations which participated in a membership and sales campaign. It is estimated in Nebraska that each year about a 10-percent increase in membership results from the crediting of nonmembers’ patronage refunds toward the purchase of membership shares.3 In the Lake Superior region, the associations affiliated with Central Cooperative Wholesale were reported to have made considerable progress toward financial stability, recording a 49-percent increase in member equities in the 5-year period 1940-45.4 Several retail associations were in the milliondollar sales class in 1946, including the Cooperative Oil Association of Olmsted County, Rochester, Minn. ($1,152,000)— the first petroleum associa tion in the United States, to the knowledge of the Bureau, to attain this level. Other million-dollar associations in 1946 included Rochdale Coopera tive, Washington, D . C. ($1,428,308), Cooperative Trading Co., Waukegan, 111. ($1,752,750), Greenbelt Consumer Services, Greenbelt, M d. ($1,428-, 586), United Cooperative Society, Maynard, Mass. ($1,169,273), Cloquet Cooperative Associa tion, Cloquet, Minn. ($1,672,772), Franklin Co operative Creamery Association, Minneapolis, Minn. ($5,222,220), and New Cooperative Co., Dillonvale, Ohio ($1,591,779). Among some 1,400 associations for which the Bureau of Labor Statistics has reports, sales averaged $308,700 for the stores and $207,700 for the petroleum associations. Net earnings for the stores with earnings averaged 5.5 percent on total business done; losses for those which could not make ends meet averaged 3.4 percent of sales. (This was a less favorable showing than for the preceding year, when the corresponding figures were 5.8 and 1.8 percent.) For the oil associations earnings averaged 10.1 percent (8.9 percent in 1945) and losses 5.0 percent of sales (1.2 percent in 1945). 2 Based on associations whose accounts were audited by the Cooperative Auditing Service (Midland Cooperator, November 27, 1946). 3 Nebraska Cooperator (Omaha), March 19,1947. 4 Cooperative Builder (Superior, W is.), November 28,1946. 62.5 percent had greater earnings in 1946 than in 1945, 19.2 percent had smaller earnings, and 9.1 percent that had operated at a loss in 1945 were able to close the year “ in the black.” Although the petroleum associations as a group have been consistently successful, 1946 showed even better earnings than any o f the previous 5 years. The year 1946 reversed strikingly the trend in dollar volume of sales for the store associations. Although sales had shown an increase each year, the rate o f increase declined through 1945. For 1946, however, there was a 30.8-percent rise— the largest since 1942. Further, 90.5 percent of the stores had increased sales as compared with only 72.9 percent in the preceding year. Among the oil associations, the 27.9-percent increase was the largest in the 6-year period, and 94.1 percent were in the group registering greater business, as compared with 86.3 percent in 1945. For the local associations which are affiliated with cooperative wholesales, the “ earnings” or “ savings” reported include patronage refunds on their purchases from the wholesale. Among the retail associations for which data are at hand, the refunds from the wholesales ranged from slightly over 20 percent to nearly two-thirds of the retail associations’ total reported earnings. In a small number of cases, only the refund from the whole sale prevented the local association from showing a loss for the year. Information as to the retail cooperatives’ pa tronage returns to their members is available for only 88 associations (52 petroleum cooperatives and 36 stores). The former refunded (in cash, shares, members’ equity credits, etc.) sums averaging 8.8 percent of sales and the latter 3.6 percent of sales. For the whole group of 88 associations, the refunds totaled $1,283,237. Central Organizations Trend oj Development, 1941-46. Reports from associations for which data are available for 1945 and 1946 indicate that for both the store and petroleum associations membership increased each year during the 6-year period 1941-46. For the store associations the greatest rise occurred in 1944 (table 2), and for the oil associations in 1943. Since those years, athough there has been a membership gain each year, it has been at a decreasing rate. The operating results for the year 1946 repre sented, for the stores, a substantial improvement over 1945. Over 90 percent made earnings on the year’s business (87.3 percent in 1945); of these, Summary figures showing membership, business, earnings, and patronage refunds for the various types of central business organizations are shown in table 3 (p. 4). All items show substantial progress as compared with 1945. Wholesale Associations Membership. Nearly 4,000 local associations were affiliated with the 24 reporting regional wholesales at the end of 1946—an increase of 8.8 percent as compared with 1945. The 220 member associ ations reported by 8 district wholesales (table 4, T able 2.*— Trend o f operations o f retail Store and petroleum cooperatives , 1 9 4 2 -4 6 1 Store associations Petroleum associations Item 1946 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— Oftin t.o loss nT T,nss t.ngain . r Percent reporting— Loss in both current and preceding years..................................... Increase in gain over preceding year............................................. Decrease in gain from preceding year........................................... 1945 1944 1943 1942 1946 1945 1944 1943 1942 1 1 .6 15.9 25.6 13.6 8.3 10 .8 11.4 14.4 23.9 9.5 72.8 27.2 82.9 17.1 98.8 75.5 24.5 77.5 22.5 78.2 79.9 1 .2 77.4 22.7 2 1 .8 20 .1 74.5 25.5 73.8 26.2 30.8 11.5 19.6 28.8 30.8 27.9 10.7 2 2 .6 19.1 13.6 90.5 9.5 72.9 27.1 80.3 19.7 84.7 15.3 90.8 9.2 94.1 5.9 86.3 13.7 89.4 71.5 28.5 78.9 5.8 9.1 4.2 10.7 6.4 4.2 6 .8 5.3 5.4 4.9 .9 3.3 62.5 19.2 8.4 49.4 27.2 2 .0 62.3 25.1 1.9 51.7 34.3 69.5 17.9 .8 2 .2 8 8 .0 11.1 78.9 20.3 1 0 .6 2 1 .1 #7 4 .9 1 .8 2 .0 1 .2 .5 74.5 23.3 60.3 37.5 #4 64.7 3L7 i Based on identical associations reporting for both current and preceding year. 3 p. 6) represented an 18.9-percent increase, which resulted mainly from the progress of a single association. Two additional associations became members of National Cooperatives in 1946. These were British Columbia Cooperative Wholesale (Van couver, B. C.) and Tennessee Farmers Cooper ative Association (Columbia, Tenn.).6 National Cooperatives estimated that the 4,522 retail members of its 22 regionals (5 of which are in Canada) were serving 1,400,000 individual members. Twenty regional wholesales estimated that their 3,355 local member associations had 1,467,220 individual members at the end of 1946; 13 of these (with 2,869 affiliated associations having an estimated membership of 1,208,650) were members of National Cooperatives. Distributive Facilities. Following its announced intention of expanding into the building-materials field, Associated Cooperatives (California) in vested $15,000 in a lumber mill near Eureka in 1946, giving it purchase rights to the output. Its new building-supplies department started opera tions early in 1947. In New York, the annual meeting of Eastern Cooperative Wholesale ap proved a program calling for addition of electrical appliances and expansion of the household supplies, automotive supplies, and grocery departments. Consumers Cooperative Association (Missouri) added propane gas; Ohio Farmers Grain and Sup ply Association, a line of insecticides; Utah Cooperative Association, appliances and hardware; and Wisconsin Farm Supply Co., refrigerators and quick-freeze units. The Grange Cooperative Wholesale, at Seattle, on the other hand, dis« Neither of these is included in the statistics here given, the former because it is not in the United States and the latter because it handles no consumer goods. continued groceries; the reason was not reported. Substantial increases in cooperative investment in fixed assets took place in 1946. Farm Bureau Services (Michigan) erected a warehouse and elevator at Kalamazoo. Eastern Cooperative Wholesale (New York City) bought a new and larger branch warehouse in Cambridge, Mass., in creasing its space by about 93,000 square feet, and planned the erection of a branch warehouse build ing on land already owned in Philadelphia. The Ohio Farmers Grain and Supply Association con structed a repair garage for its trucks and a locker room for its employees. The Pennsylvania Farm Bureau Cooperative Association bought an existing structure at Florin, which it plans to use as branch warehouse, and completed construction of three others (at Greensburg, Schuylkill, and Centre). Utah Cooperative Association acquired a $15,000 warehouse. Additions to existing structures were made by Farmers Union Central Exchange (to its warehouse at Great Falls, M ont., and its head quarters in South St. Paul, M inn.) and by the Oregon Grange Wholesale (to its warehouse). Pacific Supply Cooperative (Walla Walla, Wash.) acquired a new warehouse in 1946 and decided to build another in 1947. This wholesale and the newly formed Cascade Cooperative Whole sale together took over a large building in Seattle which will serve as headquarters for Cascade and branch warehouse for Pacific. The Grange Co operative Wholesale (Seattle) acquired a building providing office and warehouse space. Central Cooperative Wholesale (Superior, W is.) bought another warehouse in Superior and erected a branch warehouse in Escanaba, M ich., to serve cooperatives on the Upper Peninsula; other expansion planned by it included a terminal at T able 3.— S u m m ary o f operations o f cooperative wholesales and service and productive federations , 1 94 6 Item Wholesales All federations Interregional 62 Number of federations reporting............................................................. 6,811 Number of member associations................................. - .......................... Total business _________________________________________________ $271,260,554 Wholesale distributive__ _____________________________________ $227,159,313 $5,485,092 Service __ ________________________________________________ $5,265,225 Retail distributive ________________________________________ $95,583,814 Value of own production________________________________________ Net earnings, all departments— ..................................- .......................... $13,214,933 $9,355,047 Patronage refunds, all departments. .................... .................................. 1 No data. 4 1 22 $16,900,000 $16,900,000 8 <9 . Regional 24 3,987 $211,459,903 $201,909,852 $4,284,826 $5,265,225 $62,194,903 $11,865,755 $8,215,096 District 8 220 $8,762,058 $8,349,461 $412,597 $1,177,780 $265,235 $206,310 Service fed erations 16 1,344 $787,669 Productive federations 13 238 $33,350,924 $787,669 $54,567 $21,264 $32,211,131 $1,029,376 $912,377 Wadena, Minn., and a lumber yard at Virginia in the same State. Among the district organizations, Trico Co operative Oil Association added a bulk plant at Duluth, and Northern Cooperatives acquired a building for use as terminal and repair shop for its fleet of 19 trucks and vans. Altogether, 66 warehouses were reported by 16 regional associations. One organization had 12 warehouses, one had 11, one had 6, four had 5, two had 3, and four had 2 each; the other three associa tions had 1 warehouse each. Four regional organ izations did no warehousing. Among the district associations, only three operated warehouses; two of these had 1 each and the third had 4. Retail branches were operated by 8 of the 20 regional wholesales reporting; they had a total of 60 such outlets. One wholesale had 16, one had 13, two had 11 each, one had 4, one had 3, and two had 1 each. Associated Cooperatives, which had previously had a retail branch, discontinued it in 1946. Service Facilities. Associated Cooperatives of California added to its previous services “ manage ment counsel” for local associations through a field supervisor, for the purpose of working with local boards to put their associations “ on a sound, business-like operating basis.” Its new accounting service for member cooperatives went into opera tion in November 1946. Central States Cooperatives started a silk-screen poster service— a sales-promotion aid for the local stores. Its annual report noted that its central ized accounting service, which provides monthly reports, had been of great assistance to the stores in the analysis and control of their operations. A t the end of its fiscal year, this service was being provided to 25 grocery associations, 2 ap pliance stores, 1 gasoline station, and 1 campus co operative. The wholesale also provides auditing service. Midland Cooperative Wholesale started an appliance repair service. Distributive Operations. Nearly 202 million dol lars' worth of wholesale distributive business was reported for 1946 (table 4, p. 6). All but 1 of the 21 reporting wholesales for which figures for both years were available showed an increase in dollar volume over the preceding year; for this group there was a total increase amounting to 31.0 percent. All but 4 of the 22 regional wholesales for which data on earnings are available for both 1945 and 1946 had greater earnings in the latter year. Of these four, Midland Cooperative Wholesale’s smaller earnings were attributed to three factors: (1) Smaller patronage refunds from the productive federations of which it is a member, (2) reduced earnings in its own refinery, caused by an increase in the price of the crude oil it purchased, without a corresponding rise in the wholesale price of the refinery products, and (3) the wholesale’s initial costs of getting into crude-oil production.6 A loss was sustained on the 1946 operations by Eastern Cooperative Wholesale, charged to two factors: (1) An inventory mark-down on citrus juices and other items toward the end of the year, when the market prices of these “ broke,” and (2) inauguration of a volume-discount plan and price reductions, from which its member associations benefited. For the whole group of regional wholesales re porting for both years, net earnings increased 87.7 percent. Patronage refunds also rose; for the group reporting for both years, 35.3 percent more was returned to member associations than in 1945. For all associations reporting for 1946, the refunds exceeded 8 million dollars. However, these earn ings and refunds, as shown in table 4, were not in all cases for distributive business alone, but in cluded the service and productive operations also. Production is generally quite profitable, whereas, as noted in table 6, some of the services aue carried on at a loss. 6 This association noted that about $94,000 of its net earnings of $622,554 went for Federal income taxes. 5 T able 4.— Distributive business , net earnings , and patronage refunds o f cooperative wholesales, 1 9 4 5 and 1 94 5 [Associations marked * are members of National Cooperatives l] Association Year or gan ized All associations: Interregional.................. Regional: Wholesale business.. Retail business____ District........................... Number of affiliated as sociations 1946 1945 22 20 }3 ,987 220 Amount of business2 1946 $16,900,000 (201,909,852 3,585 \ 5,265,225 8,349,461 185 Net earnings 1945 1946 $6,755,900 <3) 149,952,392 $11,659,531 3,838,424 161,899 230,936 10,090,431 1945 $7,008 Patronage refunds 1946 (3) 1945 $7,008 6,201,034 $8,169,231 80,875 45,865 204,343 177,801 Interregional Illinois: National Cooperatives (Chicago) . 1933 22 1944 Arizona: Southwest Cooperative Wholesale * (Phoenix).. California: Associated Cooperatives8 (Oakland)*........... 1939 Idaho: Idaho Grange Wholesale9 (Shoshone)............— Illinois: Central States Cooperatives10 (Chicago)*................... 1936 Illinois Farm Supply Co.11 (Chicago)........................ 1927 Indiana: Farm Bureau Cooperative Association (Indianapolis)*. 1921 Iowa: Farm Service Co.11 (Des Moines)............................ 1927 Michigan: Farm Bureau Services11 (Lansing)*..................... 1920 Minnesota: Midland Cooperative Wholesale (Minneapolis)*............ 1926 Farmers Union Central Exchange (St. P aul)*-.............. 1927 Minnesota Farm Bureau Service Co. (St. Paul)........... i 1928 Missouri: Consumers Cooperative Association 11 (Kansas City)*..................................................................................... |1928 Nebraska: Farmers Union State Exchange (Omaha)*........... 1914 New York: Eastern Cooperative Wholesale (New York)*— 1929 Ohio: Farm Bureau Cooperative Association (Columbus)*___ 1933 Ohio Farmers Grain & Supply Association (Fostoria)... 1929 Oregon: Oregon Grange Wholesale (Portland)....................... 1937 Pennsylvania: Pennsylvania Farm Bureau Cooperative Association (Harrisburg)*— ................................................. 1934 Texas: Consumers Cooperatives Associated (Amarillo)*___ 1931 Utah: Utah Cooperative Association (Salt Lake City)*....... 1935 Washington: Grange Cooperative Wholesale8 (Seattle)........................ 1919 Pacific Supply Cooperative (Walla Walla)*..................... 1933 Wisconsin: Wisconsin Cooperative Farm Supply Co.17 (Madison)— 1923 Central Cooperative Wholesale (Superior)*................... . 1917 5 31 20 6,755,900 (3) 2,447,863 (3) 264,508 471,538 fL «7170,840 335,659 (3) («) 16.900.000 7,008 (») 7,008 Regional (3) (3) 15,958 22,589 *21,757 (3) 8 11,518 (*) 8 10,486 11 30 (8) 112 166 86 71 153 105 162 86 (3) 129 1,180,308 21.178.000 18,478,474 2,846,591 •8,257,822 . 7 3,277,324 780,466 9,618 17,439,004 1,431,003 14,294,376 121,761,742 72 1,737,155 102,079 « 316,094 « 6,863,156 7 2,194,571 7 70,970 440 400 73 1,015 383 400 70 907 338 168 330 172 15,793,110 20,403,330 2,216,751 «26,069,029 7 420,788 •3,508,931 7 1,341,292 6,186,100 12 716,402 12 408,416 12 574,167 12 622,554 11,476,146 14,064,094 141,976,130 14 1,640,239 141,269,476 141,126,540 14 83,120 14 134,973 14 82,694 14 135,193 1,680,359 « 579,114 ^1,328,700 12 1,153,487 6 21,911,031 «1,665,299 71,141 710,778 7 326,407 «155,036 « 188,768 «138,138 « 2,869,889 «158,866 7 64,102 7 42,828 7 45,865 7 1,146,606 7 32,625 56,839 45,784 4,656,038 i«13,340 89 198 14 177 13 21,784,052 12 1,501,276 27,598,761 « 1,646,681 } 1,698,905 ' « 78,495 7 225,821 7 6,049 1,012,376 659,035 70,478 28 207 20 24 158 18 10,789,634 9,125,149 « 4,687,077 | 3,490,385 i« 929,332 572,533 304,397 14 272,191 14 191,990 i« 44,798 35,457 55 115 55 101 4,042,968 12,353,357 3,438,960 4,748,542 8 227,562 12 713,000 8 167,197 8 450,096 8 227,562 (4 8 359,256 19 173 12 164 2,256,509 6,647,118 1,710,903 6,692,997 54,041 12 270,288 12 167,798 10,307 40,784 12 240,570 12 167,383 203,462 537,743 161,653 322,577 1412,380 6,524 14 1,014 1412,380 4,582 14 1,014 (3) 22,589 7,911 5,148 704,258 1,094,336 12 1,093,673 121,579,914 13 56,698 100,230 *294,507 ►8 334,870 7 36,906 12 509,727 (3) 7,911 601,097 12 927,549 18 55,000 8 300,139 12894,777 14 66,812 70,237 12 262,172 14 43,356 36,346 14250,749 14 171,607 14 71,325 ri4 240,757 L 1« 44,798 11,797 30,138 14 142,182 14 150,256 11,207 14 56,607 37,968 8167,197 34,261 D istrict Michigan: Cooperative Services (Bruce Crossing)............................. Northland Cooperative Federation (Rock)...................... Minnesota: Trico Cooperative Oil Association18 (Cloquet).............. C-A-P Cooperative Oil Association19 (Kettle River)___ Range Cooperative Federation (Virginia)........................ Northern Cooperatives (Wadena)..................................... Wisconsin: Range Cooperative Services (Hurley).............................. Cooperative Services (Maple)........................................... 1932 1938 6 8 1929 1929 1924 1932 18 21 25 129 1930 1928 1 National Cooperatives at the end of 1946 also had 5 affiliates in Canada: Alberta Cooperative Wholesale, British Columbia Cooperative Wholesale, Manitoba Cooperative Wholesale, United Farmers of Ontario, and Saskat chewan Federated Cooperatives. Other affiliates in the United States not shown in this table, either because not a federation or because not handling consumer goods, are Farmers Cooperative Exchange (North Carolina) and Tennessee Farmers Cooperative. 2 Unless otherwise indicated, figures relate to wholesale distributive busi ness and are for calendar year. * No data. 4 Data are for year ending Feb. 28,1947. 8 Data are for year ending Oct. 31. « Wholesale business. 7 Retail business. 8 Includes service departments. 6 <3) 249,411 278,769 148,619 144,395 1,161,825 1,634,088 « 741,112 r « 857,311 l20 4,193,305 20 6,898,270 20 60,971 240,280 170,908 8 22,044 283,057 213,107 23,827 10,823 12 71,435 «15,336 14,120 18,149 15,606 12 35,505 21 108,901 8,956 16,212 23,827 9,741 12 52,824 «12,465 20 49,558 (3) 8 17,006 18,149 15,606 12 30,365 21 101,858 (22) 15,130 9 Data are for 9 months, ending Sept. 30,1946. are for years ending Mar. 31,1946 and 1947. 11 Data for year ending Aug. 31. 12 Includes service and productive departments. 131944. i4 Includes productive departments. I®Loss; before payment of $9,048 in dividends on deferred stock. i« Grain marketed for members. 17 Data are for years ending Sept. 30. 18 Data are for years ending June 30. !• Data are for years ending Apr. 30,1946 and 1947. *° Dairy products marketed. 21Includes service and marketing departments. 22 Sty percent on petroleum products, 2 percent on warehouse and service patronage; amount not reported. 70 Data Capital and Resources. Preferred stock (which carries no vote but has first call on earnings) is increasingly being used to finance new enter prises, especially productive plants. Of the 22 regional wholesales reporting as to their capital structure, 15 had issued preferred stock, to a total of $16,376,248. Their common stock (owned by cooperative associations) amounted to $7,351,141. Four associations were nonstock organizations. The common stock of the other three associations totaled $1,598,189. Only one of the district wholesales had issued preferred stock; it had out standing $128,900 in preferred and $33,700 in common stock. The other five district organiza tions reporting had a combined total of $294,311 in common stock. The assets of 23 reporting regionals aggregated $73,391,801. Among these associations the ratio of current to total assets ranged from 32 to 96.4 percent (in 1945 the range was from 30.6 to 83.2 percent), with an average of 52.3 percent (59.1 in 1945). The range among the six district associa tions reporting was from 44.2 to 75.1 percent (11.8 to 71.8 in 1945), with an average of 61.6 percent (47.4 percent in 1945). The ratio of current assets to current liabilities was equally variable, ranging among the regional wholesales from 1.1:1 to 10.0:1 and among the district organiza tions from 1.1:1 to 10.8:1; the averages were 1.9:1 and 2.8:1 respectively. These revealed a rather less liquid condition than in the preceding year when the ranges were 1.4:1 to 20.2:1 and 0.6:1 to 7.0:1 and the averages 1.8:1 and 4.4:1. Information on net worth, for 15 regional and 3 district organizations, revealed member equities (ratio of net worth to total liabilities) ranging from only 1.6 percent to 92.3 percent in the former organizations and from 57.6 to 91.5 in the latter. The average member equities for the two groups were 51.9 and 69.2 percent; these represented a notable improvement over 1945, when the figures were 41.9 and 50 percent, respectively. Services of Central Cooperatives Business. A 28-percent increase in the amount of service business in 1946 was reported (table 5). Transport service (for the most part provided by the wholesales) was still by far the most impor tant, in terms of business done; but auditing, financing, and store services showed substantial gains both relatively and in amount of total income. Repair service for appliances newly re turned to the market brought up the total for “ repairs” also. Increases in business for nearly every kind o f service were shown by all of the wholesale service departments (table 6). The same was true for most of the service federations. Only for a few wholesales were earnings from services separable from those of the distributive operations, and for those the losses so far offset T able 5.— Service activities o f central cooperative organizations , 1948—4 6 Service Total Amount All services............................................................................ $5,485,092 Funeral service...................................................................... 154,870 Repair service (autos, machinery, appliances, etc.)........... 168,358 Recreation______________ ___________ __________ _____ Insurance, bonds, etc............................................................ 350,667 Auditing, accounting, tax service........................................ 242,832 Financing and credit............................................................ 321,828 Store services (management, planning, advertising, etc.)_ 217,669 Transport (truck, towboat, pipe line, tank car)................. 3,977,795 Millwright service . _ _____ _______ 3,139 Printing (purchase only)...................................................... 25,172 FTnnse insulation 22,762 Other (not specified)............................................................ Per cent Depart ments or subsidia ries of whole sales 300.0 $4,697,423 2 .8 3.1 46,249 168,358 .1 120,667 114,694 95,446 217,669 3,908,439 3,139 .5 .4 22,762 6.4 4.4 5.9 4.0 72.6 1944: Total 1945: Total 1946 Service federa tions Amount Per cent $787,669 $4,285,898 100.0 3.6 2.3 1108,621 230,000 128,138 226,382 69,356 25,172 (*) 153,183 97,337 4,846 246,083 167,583 130,412 60,585 3,103,882 3,029 16,412 5.8 3.9 3.0 1.4 72.4 302,546 7.1 .1 1943: Total Per cent Amount $11,652,806 100.0 $5,163,060 126,295 93,412 4,752 68,498 137.274 136.275 53,226 10,486,685 LI .5 90.0 77,981 104,073 4,864 49,912 154,357 178,884 15,496 3,964,808 546,389 4.7 612,352 Amount .8 (») .6 1 .2 1 .2 Per cent 100.0 1.5 2 .0 .1 1 .0 3.0 3.5 .3 76,8 .1 333 .4 0) 11.9 1 Includes some income from house insulation, not separately reported. * Less than 0.05 percent. •.Included with funeral service. 767141°—48---- 2 7 the gains that a net loss of over $60,000 for the whole group resulted. For those associations— wholesales and service federations— for which data were available for both 1945 and 1946, the amount of business done increased 29.2 and 43.1 percent, respectively. Resources of Service Federations. Among the service federations the resources are small, largely because their business does not generally require T able 6 large investments in plant or equipment. For the 13 associations reporting, the combined assets totaled $1,002,545, o f which nearly $800,000 was accounted for by two large associations; the other 11 associations averaged $18,980 each. However, in most cases their net worth was high; the mem ber equities averaged 85.9 percent of total assets. Only 2 of the 11 associations for which net worth was available fell below 70 percent; those two had a net worth of 17.8 and 52.8 percent, respectively. .— Service activities o f central cooperative organizations, 1 94 5 and 1 946 SERVICE DEPARTMENTS OF WHOLESALES State, association, and kind of service Amount of business (gross income) 1946 Total: Regional wholesales...................................................................... District wholesales........................................................................ California—Associated Cooperatives: i*3 Auditing........ .............................................................................. Insurance (agency)....................................................................... Trucking........... ............................................................................ Illinois— Central States Cooperatives: 4 Accounting, auditing.................. Illinois Farm Supply Co: 5 Transport (by truck and towboat). Indiana—Indiana Farm Bureau Cooperative Association: Auditing.......... ................................................................ ........... Insurance...................................................................................... Finance (credit)............................................................................ Auto repair.................................................................................... Trucking........... ............................................................................ Michigan—Farm Bureau Services: 5 Management..........................- ..................................................... Millwright..................................................................................... Trucking....................................................................................... Minnesota— C-A-P Cooperative Oil Association: 7 Automobile repair___________*_.............................- ................ Trucking.................................................................................... Midland Cooperative Wholesale: Appliance repair..................................................................... Trucking................................................................................. Pipe-line and tank-car-service....................... ...................... Range Cooperative Federation: Auto repair....... .................................................................... Mortuary............................. ................................................ Recreation..... ........................................................................ Insurance (agency)................................................................. Northern Cooperatives: Trucking............................................. Missouri—Consumers Cooperative Association: 6 Auditing...................................................................................... Trucking................................ ...................... .............. ................ New York—Eastern Cooperative Wholesale: Insurance and bonds Ohio—Farm Bureau Cooperative Association: Trucking............................. ......................................................... Store plans and specifications...................................................... WashingtonOrange Cooperative Wholesale: 3 Bookkeeping.......................................................................... Trucking................................................................................ Pacific Supply Cooperative: Auto repair.............. .............................................................. Trucking................................................................................. WisconsinCentral Cooperative Wholesale: Auditing................................................................................. Trucking.................................... _.......................................... House insulation.................................................................... Advertising............ ................................................................ Cooperative Services: Machinery repair.................................... i Loss. 2 Included with distributive business (see table 4). 8 Data are for years ending Oct. 31. 4 Data are for years ending Mar. 31,1946 and 1947. 8 Net earnings 1945 $4,284,826 $3,310,414 412, 597 281,837 302 46,622 147 23,077 1,870,000 19,715 60,500 95,446 25,125 282,278 } 1946 1945 i $63,165 34,299 $544,188 5,626 Patronage refunds 1946 00 $28,509 1945 $474,876 5,626 1 8,353 | 1,159 1,743,900 00 (2) 00 17,108 1 47,828 68,702 \ 25,320 257,318 J 0) (2) (2) 543,052 (2) 00 (2) (2) 00 00 474,876 (2) [(2) 00 (2) 7,868 3,139 71,695 12,189 1 3,029 !► 19,987 1,136 44,590 20,351 21,067 } 5,626 3,889 28,975 138,462 87,172 \ 174,792 1 (2) 00 (2) (2) 59,752 48,116 ] 40,913 46,249 4,846 | 6,199 \f 4,902 231,290 161,993 (2) (2) 00 (2) 21,994 (2) 7,239 6,515 5,626 ) 27,060 00 36,717 592,801 7,346 27,132 421, 599 } 153,178 (6) (2) 00 00 (2) 00 303,627 195,162 148,736 48,396 } (2) (2) <2) <2) 1,491 40,635 4,092 } 00 (2) (2) <>) 30,836 205,136 23,901 165,409 } (2) (2) (2) <*) 00 (2) (2) <2) (2) (2) (2) (2) 33,392 123,042 22,762 14,639 4,166 (2) 24,279 • 8 Data are for years ending Aug. 31. 6 No data. 7 Data are for years ending Apr. 20,1946 and 1947. T a b l e 6.— Service activities o f central cooperative organizations , 19J+5 and 1 946 — Continued SERVICE FEDERATIONS Amount of business (gross income) Association and kind of service Total..................................................................................................................................... . 1946 1945 $787,669 $515,477 $54,567 («) 111 10,800 47,107 18,175 63,642 16,412 13 3,518 185,000 18 49,531 15,304 4,435 346 3,101 Iowa—Business Service Association: Auditing, tax service, and business analysis8........... 16,607 Maryland—Federated Cooperatives of Maryland: Financing, collections, statistics8.____ 33,077 MinnesotaFederated Co-ops of East Central Minnesota: Funeral service, house insulation, spray painting, insurance, propane gas9................................_.................................... 74,570 Northland Cooperative Mortuary: Funeral service*.................................................... 14,525 Cooperative Auditing Service: Auditing, accounting, business advice, tax service 10.. 77,278 Cooperative Press: Collective purchase of office supplies and printing_____________ 11 25,172 Midland Credit Corporation: Loans to local cooperatives 12................... ..................... 13 3,813 Farmers Union Agency: Fire, casualty, and surety bonds............ ................. ............. 230,000 Farmers Union Cooperative Credit Association: Loans to local cooperatives............. 18165,171 Montana—Farmers Union Carriers: Trucking8...................................... ........... ........... . 9,094 Nebraska— Farmers Union Non-Stock Cooperative Transport Association: Trucking8_________ 9,784 Farmers Union Nonstock Cooperative Transport Association: Trucking.............. . 38,908 Farmers Nonstock Transport Association: Trucking8. _________________________ 11,570 South Dakota—Equity Audit Co.: Auditing, tax service, business advice3.......... ........... 34,253 Wisconsin— Valley Cooperative Services: Funeral service16____________________________ ____ 19,526 Central Finance: Financing sales contracts__________ ______ _____________ ____ 18 24,321 8 Data are for years ending Oct. 31. 6 Data are for years ending Mar. 31,1946 8 Data are for years ending Aug. 31. 8 Data are for years ending Sept. 30. 9 Data are for years ending June 30. 10 Data are for years ending Nov. 30. Membership of Service Federations. More than 1,300 local associations were affiliated with the reporting central service organizations at the end of 1946 (table 7). For associations for which data were available for both 1945 and 1946, there was an increase of 1.2 percent. T a ble 7.— M em bership o f central service federations , 1 94 6 and 1946 of Year Number affiliated in associations which organ ized 1946 1945 1,344 1,302 1938 130 1 102 1944 4 4 1942 1936 1935 1939 1937 1940 439 33 450 436 16 32 450 1938 1939 163 15 151 15 All associations_____________________________________ Iowa—Business Service Association (Des Moines)_____ Maryland—Federated Cooperatives of Maryland (Fred erick) ____________________________________________ MinnesotaFederated Co-ops of East Central Minnesota (Cam bridge).... ........................ ......................................... Northland Cooperative Mortuary (Cloquet)______ Cooperative Auditing Service (Minneapolis)______ Cooperative Press, Inc. (Minneapolis)____________ Midland Credit Corporation (Minneapolis)_______ Farmers Union Agency (St. Paul)....... .......... ......... Farmers Union Cooperative Credit Association (St. Paul)............... .............. ....................................... Montana—Farmers Union Carriers, Inc. (Froid)______ Nebraska— Fanners Union Non-Stock Cooperative Transport Association (Dodge).............................................. . Farmers Union Nonstock Cooperative Transport Association (Kearney)............................................. Farmers Nonstock Transport Association (Milford). South Dakota—Equity Audit Co. (Aberdeen)............... Wisconsin— Valley Cooperative Services (Appleton)_____ _____ Central Finance, Tnn. (Superior)...._ __ ... _ 1 Data are for 1944. 2 No data. 1946 Patronage refunds 1945 1946 1945 $30,156 $21,264 $12,648 (6) 10,800 u 1,212 2,185 14,960 5,013 15,298 442 2,279 2,541 827 1,782 5,606 3,852 i 2,351 2,791 ii 1,057 i* 725 6,665 34,755 9,836 30,172 1,056 13,584 710 1,173 1214 9,475 1283 1,708 1,056 («) (6) 435 23,181 18 12,179 953 226 4,395 97 600 3,800 (#) <«) 1,837 2,287 704 3,339 (•) 1,216 3,26£ 11 Data are for 10 months ending Oct. 31. 12 Data are for years ending May 31,1946 and 1947. 13 Total income. 18 Dividends on stock (organization operates on same basis as credit union). 18 Amount of loans made. 16 Data are for years ending July 31. and 1947. 6 No data. Association Net earnings 22 21 11 23 21 1943 2 2 1939 (1 2) 1917 4 4 39 4 4 35 1942 1940 5 5 2 2 Production by Central Cooperatives Expansion of Productive Facilities. Of the whole sales undertaking production individually, Illinois Farm Supply Co. opened a new fertilizer plant in 1946, and Farm Bureau Services (Michigan) purchased a site for a fertilizer plant at Saginaw. The Indiana Farm Bureau Cooperative Associa tion completed the conversion of its skimming plant to a cracking plant and the latter went into operation in M ay 1946. This step increased the daily gasoline capacity from 3,000 to 4,000 barrels and made possible the production of 80-octane gasoline from 60 instead of 28 percent of the crude oil. It was reported that the wholesale would thereafter be able to supply from its own refinery (which occupies a 20-acre tract near M ount Vernon, Ind.) almost all the petroleum require ments of its member associations. In April this association was reported to have 72 producing oil wells. In addition to its three sawmills in Arkansas, the wholesale reports that it is also “ financing and controlling” three in Mississippi. The feed mill at Hammond,7 which the wholesale bought in the fall, was severely damaged by fire shortly thereafter. 7 Formerly operated by the Farm Bureau Milling Co. (members of which were the Indiana and Wisconsin Farm Bureau Cooperative Associations, Michigan Farm Bureau Services, and Illinois Farm Supply Co.). 9 In the spring of 1946, Midland Cooperative Wholesale purchased 440 acres of oil-bearing land in Oklahoma, near its refinery at Cushing; the tract had 21 producing wells in operation at the time of purchase, yielding some 1,600 barrels of crude oil daily. Later in the year a producing well was brought in on a 900-acre tract in which the wholesale owns a half interest. A $15,000 addition to its oil-blending plant and office build ing in Minneapolis was authorized by the board of directors. However, according to the whole sale’s annual report, the crude-oil supply was still not sufficient to keep its refinery in full operation, as its own production was not great enough to offset the loss of the crude oil previously obtained under a contract with a private producer, which expired early in 1946. The Laurel (M ont.) petroleum refinery owned by Farmers Union Central Exchange (St. Paul, M inn.) was seriously damaged by fire in June 1946, but was able to resume partial operation almost immediately. After two unsuccessful drillings on leases the locations of which were not given, it was reported in July that 4 wells had been brought in, on the 200-acre tract the association had leased in the Cat Creek Field from the State for $39,000, in 1945 (300 acres adjoining were later acquired). B y the end of the year the Exchange had 9 produc ing wells in this region. The wholesale also noted, in its annual report, the construction of four liquefied-petroleum gas plants, at Williston, N. Dak., Glendive, M ont., and Aberdeen and Sioux Falls, S. Dak. Difficulties in obtaining equip ment and appliances delayed the full operation of these plants, but three were operating by early 1947 and the fourth was expected to start very shortly thereafter. The wholesale also started construction on a plant for the manufacture of cooperative tractors. Consumers Cooperative Association (Missouri) made improvements at its lubricating-oil refinery valued at about $1,000,000, in 1946, designed to increase the productivity and make possible the recovery of byproducts. It purchased a lease on 300 acres in Kansas and a third interest (with two independent operators) in 1,860 acres in Oklahoma. The latter it will operate for the other two owners. W ith these acquisitions, the association reported, it had under its control nearly 100 square miles of oil-bearing land. A t 10 the end of its fiscal year it had 448 producing wells, of which 45 were drilled and 54 were pur chased during the year, 10 were sold and 9 plugged or abandoned. O f the 5,345,000 barrels of crude oil handled by its three refineries in 1945-46, more than 30 percent came from its own wells or those owned jointly with others (as com pared with 18 percent in 1944-45). For the third successive year all the petroleum needs of its member associations were supplied from either its own refineries or those in which it is a joint owner. The association reported that in 1945 it produced for its members and for the Army and N avy over 20 million gallons of m otor oil. In 1946 it bought the high-octane gasoline re finery it had operated for the Government dur ing the war. Improvements to its sawmill at Swisshome, Oreg., increased its weekly capacity from 17 to 22 carloads of lumber, but lack of railroad cars was a continuing handicap. The output of its cannery was expected to reach 350,000 cases (140,000 in 1944-45) as a result of adding numerous less-perishable commodities. The Farmers Union State Exchange early in 1947 took its first step into production by buying the oil-compounding plant from which it had been purchasing its supplies for many years. The wholesale is also a member of the National Coop erative Refinery Association. Consumers Coop eratives Associated (Texas), which bought a petroleum refinery in 1945, purchased 24 produc ing oil wells in 1946, near Roswell, N. M ex., and Midland, Tex. Pacific Supply Cooperatives bought two privately owned feed mills in central Oregon, bringing its total to three. The Penn sylvania Farm Bureau Cooperative Association built a chick hatchery. The only new productive plant reported among the district wholesales was a cheese-processing plant added by Northland Cooperative Federation. Cooperative Plant Foods (the members of which are Midland Cooperative Wholesale, Indiana Farm Bureau Cooperative Association, Wisconsin Cooperative Farm Supply Co., and Illinois Farm Supply Co.) completed the erection of a fertilizer mixing plant and an acidulating plant in 1946. The output of the National Farm Machinery Cooperative was increased considerably during 1946, but was still insufficient to meet the needs of its members. A serious problem was the short age of steel and specialized parts, as well as of lumber. The National Cooperative Refinery As sociation also reported supply difficulties, noting that the supply of Kansas crude oil was “ far short” o f that needed to run the refinery at capacity. It was hoped that a proposed pipe line, operation of which had been delayed by in ability to obtain pipe to tap the Texas and south eastern New M exico fields, would remedy the situation. In the attempt to increase its own production of crude oil, the association in the period October 15, 1945, through June 1946, drilled 37 producing and 9 dry wells; several others had been drilled down to the oil sand. A fire in August on its timber land adjacent to the International Cooperative Lumbering Association's shingle mill in British Columbia resulted in the loss of some 2 million feet of cut timber and much equipment. This caused a shut-down of operations for some time. A million-dollar expansion and improvement program, undertaken by Cooperative Mills (Read ing, Ohio), was reported to have been completed late in February 1947, placing it “ among the most modern and efficient feed mills in the country.” Coal rights on some 6,000 acres were acquired by joint action of Indiana and Ohio Farm Bureau Cooperatives and Midland Cooperative Whole sale. A new association, The Millers Creek Coal Cooperative, was formed to mine the coal. M id land Cooperator reported (October 9, 1946) that the property was expected to provide about a fifth of the coal distributed by the three regionals. (Indiana Farm Bureau Cooperative Association already owned a m ajority interest in another mine in Kentucky.) Shortly afterward, the directors o f Central States Cooperatives (Chicago) decided to join the above group and assist in financing it. Three regional consumers' wholesales (Midland, Farmers Union Central Exchange, and Central Cooperative Wholesale) and a producers' market ing cooperative (Farmers Union Grain Terminal Association) cooperated in the formation of North west Cooperative Mills in 1945, to manufacture feed and commercial fertilizer. The grains used in the manufacture of the feeds will be supplied b y the terminal association. B y September 1946 it was reported that the new organization's head quarters building, feed mill, and seed-cleaning plant— all in the midway section of St. Paul— and a fertilizer plant at Green Bay, Wis., were nearing completion. Since its formation Northwest Co operative Mills had been operating a soybean plant originally owned by Farmers Union Central Exchange at Menomonie, W is., and a small leased seed plant at Thief River Falls, Minn. Cooperative Mills (Auburn, Ind.), formerly owned by 10 regional wholesales, became a department of National Cooperatives on Janu ary 1, 1947. Likewise, Farm Bureau Milling Co. (Hammond, Ind.), previously owned by three wholesales, was taken over as a wholly owned subsidiary by Indiana Farm Bureau Cooperative Association in the fall of 1946. Goods Produced. Considerably over 95K million dollars' worth of commodities was produced by the productive departments of wholesales and the productive federations in 1946— over 3 times as much as in 1943 (table 8). Dollar volume in creased in practically every commodity group, as compared with J945. Food products, crude oil, chemical products, and feed, seed, and fertilizer all showed relative gains as well as increases in dollar volume. As in previous years, by far the greater part of the cooperative production occurred in the pro ductive departments of the regional wholesales. In most cases the earnings of the wholesale's productive enterprises are not separable from those of the distributive business. Consumers Cooperatives Associated (Texas) had net earn ings from its productive enterprises amounting to $107,490 in 1946 and to $193,248 in 1945. Northland Cooperative Federation had net earn ings of $5,322 ip 1945 and paid them out in pat ronage refunds; figures for 1946 were not separable from the distributive business. For the productive federations, the 1946 op erations were generally more profitable than had been the case in 1945. Only one association had a loss in 1946 (as it also had in the preceding year); two other associations which had lost money in 1945 showed earnings in 1946. For the whole group, there were earnings of over a million dollars in 1946, as compared with a previous loss of nearly $320,000. Almost a million dollars was declared in patronage refunds to member associations. 11 T a ble 8.— Value o f manufactures o f cooperative wholesales and federations , 1 9 4 5 -4 5 1946 Total Commodity group Amount Depart ments or Productive subsidi federations Per aries of cent wholesalers All products.................................................................. ..... $95,583,814 100.0 Food products.................................................................... 4,285,504 Crude oil__________________________________________ 2,693,007 Refined petroleum products............................................. 36,392,061 Lubricating oil................................................................... 4,891,432 191,210 Grease_________________ ____ _______________________ 119,074 Paint................................................................................... 309,059 Lumber and shingles......................................................... 321,491 Printing and products............... ....................................... Coal________ _____________ _________________ _______ Chemical products (cosmetics, household supplies, in 930,742 secticides)_______________________________________ 298,749 Poultry and poultry products.......................................... Feed, seed, and fertilizer................................................... 42,673,541 Farm machinery______________ _______ _____________ 2,353,630 124,314 Other_____________________________________________ 4.5 i Includes edible oils. 2 No data. 1945: Total 2 .8 38.1 5.1 .2 .1 .3 .3 1 .0 .3 44.7 2.5 1944: Total Per cent Amount Amount 1943: Total Per cent Amount Per cent 100.0 $63,372,683 $32,211,131 $60,577,789 100.0 $48,999,183 100.0 $29,431,499 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 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 1,958,036 31,340 6,743,901 1,358,479 223,864 1,351,782 360,502 326,959 182,714 321,306 22,503,054 2,473,036 60,249 .3 .5 37.1 4.1 2,611,856 U,673,648 2,693,007 28,048,212 8,343,849 4,891,432 191,210 119,074 309,059 122,647 198,844 930,742 298,749 23,156,695 .1 19,516,846 2,353,630 124,314 .1 1.3 .4 .1 .1 136,034 369,296 16,102,495 1,868,809 11,574 .2 2 .8 .4 6 .6 .1 22.9 4.6 .8 4.6 1.3 1 .1 .1 .3 0 .8 32.9 3.8 (3) 0 246,247 16,781,157 .8 57.1 49,232 .2 * Less than 0.05 of 1 percent. T able 9.— Productive activities o f central cooperative organizations , 1 9 4 5 and 194 5 PRODUCTIVE DEPARTMENTS OF WHOLESALES Value of goods produced State, association, and goods produced 1946 Total: Regional wholesales............................................. $62,194,903 District wholesales............................................... 1,177,780 1945 $41,326,497 797,873 California—Associated Cooperatives: 1 MimeographIllinois—Illinois Farm Supply Co.:2 Feed and fertj]iZer ^ Indiana—Indiana Farm Bureau Coop. Assn.: Crude oil............................................................... Refined petroleum products.............................. . Printing— .......................................................... Chicks and eggs.................................................. . F eed ................................................................... . Fertilizer._________ ________ ________________ Michigan—Northland Cooperative Federation: Butter and cheese................................................... MinnesotaMidland Cooperative Wholesale: Crude oil—. .................................................. . Refined petroleum products................. ....... Lubricating o il........ .................................... Fly sp ra y......................... ......................... . Feed........... .............. ..................................... Minnesota Farm Bureau Service Co.: F eed.................................. ......................... . Fertilizer............................. ......................... . Farmers Union Central Exchange: Crude oil....................................................... . Refined petroleum products........................ . Lubricating oil............................................... Feed................ ............................................ . Range Cooperative Federation: Meat products...... ....................................... . Butter............................................................. Cheese.......................................................... . 1 Data are for years ending October 31. 2 Data are for years ending August 31. 12 Value of goods produced State, association, and goods produced 335 1,335,000 735,975 4,140,378 44,372 217,912 412,133 2,637,827 2,422,320 455,129 260,596 286,189 2,756,229 555,192 12,308 608,310 610,545 892,226 97,798 3,914,078 1,117,083 0 168,553 134,069 420,029 620,668 2,649, 558 28,242 237,486 2, 510,704 388,776 22,766 563,594 469,296 2,948,022 714,386 166,365 125,867 104,980 306,430 1946 Missouri—Consumers Cooperative Association: 2 Canned goods..................................................... Dehydrated potatoes.......................................... Soft drinks.......................................................... Crude oil.......... .................................................. Refined petroleum products.............................. Lubricating oil.................................................... Grease....................................... ..................... . Lumber......... ...................................................... Paint.................... ............................................... Printing............................................................... Feed........................................... ....................... New York—Eastern Cooperative Wholesale: Offset printing, duplicating........ ...................... Coffee (roasted).................................................. Ohio— Farm Bureau Cooperative Association: Refined petroleum products...................... Chicks........................................................ Fertilizer._____________________________ Ohio Farmers Grain and Supply Association: Feed.................................. ............... .......... Fertilizer.......................... ......................... Pennsylvania—Pa. Farm Bureau Coop. Assn.: Feed and seed_______ ___ ______ ___________ Insecticides and fungicides_________________ Texas—Consumers Cooperatives Associated: Crude oil.______ _____________ ____ _______ Refined petroleum products________________ Washington—Pacific Supply Cooperative: Feed and seed.............................................. . Insecticides..................... .............. ................... Wisconsin—Central Cooperative Wholesale: Coffee (roasted). ............................... ............... Bakery products.......................................... . Feed................................................................... 2 Fertilizer plant was takefi * No data. $324,541 504,312 13,444 1,493,531 10,718,280 3,219,157 191,210 309,059 119,074 69,810 2,870,059 1945 $233,144 572,251 14,611 817,359 9,003,333 3,266,163 183,023 40,213 71,380 52,490 918,266 8,130 164,196 3,989,000 80,837 3,233,872 8 1,334,557 83,820 2,558,377 375,765 103,692 274,645 (*) 3,233,443 214,719 (9 79,514 2,530,247 1,803,712 5,243,941 703,715 59,610 2,785,671 119,948 165,644 261,939 1,599,882 134,577 217,465 2,357,011 over by Northwest Cooperative Mills. T a b l e 9.— Productive activities o f central cooperative organizations^ 1 94 5 and 1 946 — Continued PRODU CTIVE PEDERATIONS Value of own production Total amount of busi- Net earnings Patronage refunds State, association, and product 1946 Total........................... L...................................................... Indiana— Cooperative Mills: Flour and cereal products.................................... Feed............... ........................- .............. ............ Coop. Plant Foods: Fertilizer •_________ _________ Iowa—North Iowa Coop. Processing Association: 2 Feed..............................- .............................................. Soybean oil.................................................................. Kansas—National Coop. Refinery Association: Re fined petroleum products*6.......... ................................ Maryland— Fertilizer Manufacturing Cooperative: Fertilizer Coop. Fertilizer Service: Fertilizer •.......................... Minnesota—Northwest Coop. Mills: 6 Soybean meal and oil.................................................. Seed.............................................................................. Ohio— National Farm Machinery Coop: 8 Farm machinery................................................... War contracts...................................................... Farm Bureau Chemical Cooperative: Fertilizer....... Cooperative Mills: Feed®....................................... Oklahoma—Producers Coop. Oil M ill: 7 Feed........................ .................................................... Cottonseed oil.............................................................. Other cottonseed products.......................................... Washington—Grange Coop. Printing Association: Printing1............................... ........................................ Wisconsin—Cooperative Publishing Association: Printing........................................................................ Publications................................................................. Books, office forms, etc............................................... $32,211,131 1946 1946 9,222,044 $33,860,924 $11,869,183 1946 1946 1946 $1,029,376 « $319,813 $912,377 442,673 73,631 1,104,209 165,207 } 516,305 34,609 787,807 J 1,104,209 482,259 787,807 23,044 50,543 «7,967 26,890 50,543 796,563 491,848 427,683 665,047 } 1,287, 411 1,092,730 124,105 43,533 102,591 7,921,657 8129,184 »118,535 8 17,377 246,157 8,343,849 1,644,525 3,261,368 5,598,825 8,343,849 8 1,644,525 3,719,567 401,446 635,748 2,363,630 757,041 11,066,384 615,036 45,638 713,785 <*) 278,387 337,681 124,314 3,001,252 791,002 11,066,384 [ 660,674 755,549 (*) 53,878 70,194 53,878 59,086 52,462 17,102 46,690 50,728 17,211 128,650 114,629 1 Data are for years ending October 31. are for years ending August 31. Resources oj Productive Federations. As m ost of the productive federations are in businesses re quiring large amounts for expensive plant, the average amount of capital of the associations is high— $1,483,746 per association for the 13 fed erations reporting, and an aggregate of $19,288,699. N et worth ranged from 21.3 percent of assets (for an association just getting under way) to 88.6 percent, and averaged 48 percent; this repre sented a substantial improvement over 1945 when 8 86,330 23,437 569,247 7,407 1945 $71,417 35,859 17,377 213,708 2,065 8 304,284 30,989 (*) 8,512 740,382 70,194 * No data. ( 4') 2,065 937,194 2 Data 1946 20,187 491,340 27,739 (*) 7,159 4,235 5,326 7,407 4,235 3,584 *Loss. ®Data are for years ending June 30,1945 and 1946. 7 Data are for year ending June 30. the range was from 13.5 to 98 percent and the average 35.5 percent. Membership oj Productive Federations. Member ship of the productive federations totaled 238 associations at the end of 1946. There is, however, a great deal of duplication in this figure. The members are almost entirely the regional whole sales, and the same wholesale may be a member of as many as 6 or 7 different federations. 13 T a b l e 10 .— M em bership o f central productive federations , 1 9 4 5 and 1 946 Number of Year affiliated as or sociations gan ized 1946 1945 Association All associations Indiana— Cooperative Mills, Inc. (Auburn) _ _......................... Cooperative Plant Foods (Schererville).................... Iowa—North Iowa Cooperative Processing Association (Manley)...................................................................... Kansas—National Cooperative Refinery Association (McPherson)................................................................... Maryland— Fertilizer Manufacturing Cooperative, Inc. (Balti more)....... .................................. ............................. Cooperative Fertilizer Service (Baltimore)............... Minnesota—Northwest Cooperative Mills (St. P au l)... O hioNational Farm Machinery Cooperative (Bellevue). Farm Bureau Chemical Cooperative, Inc. (Glen dale).......................................................................... Cooperative Mills, Inc. (Reading)............................. Oklahoma— Producers Cooperative Oil Mill (Okla homa City)...................................................................... Washington—Grange Cooperative Printing Association (Seattle)........................................................................... Wisconsin—Cooperative Publishing Association (Su perior).............................................................................. 238 178 1940 13 12 1945 1942 2 2 1933 1944 1944 1943 Employment and Wages in Central Organizations Central organizations reporting to the Bureau of Labor Statistics for 1946 had 6,634 employees and a pay roll for the year amounting to more than 12 % million dollars. For the associations reporting both employment and pay roll, annual earnings averaged $2,252. In some cases it is known that employees also received a bonus from the association’s earnings, at the end of the year. Such bonuses are becoming increasingly common among cooperatives. 1936 1945 1945 4 3 46 ......... 1934 12 12 1934 102 96 T a b l e 11 .— E m ploym ent and earnings in central cooperative organizations , 1 9 4 8 -4 6 Type of organization AT1 reporting federations _ _ ..... Wholesales: Interregional................................................................... Regional.......................................................................... District........................................................................... Service federations................................................................ Productive federations......................................................... Total employees, 1946 Number of associations reporting Total pay roll, 1946 1946 1945 1944 50 6,634 $12,711,819 $2,252 $2,160 $2,064 1 6 10 275 4,923 156 60 14 1 ,2 20 681,635 8,776,527 329,700 162,574 2,761,383 2,478 2,294 2,049 2,710 2,313 (2) 2,124 1,963 2,459 2,364 (2) 2,037 1,808 1,997 2,259 19 1 Based upon associations which reported both number of employees and amount paid in wages. 2 No data. 14 Average earnings per employee1 in— 1943 (2) $2,024 1,502 1,893 (2) Part 2— Credit Unions Progress in 1946 C r e d i t u n i o n s had a successful year in 1946. Membership, which had been declining since 1941, rose in 1946 by slightly more than 6 percent to a level almost equal to that of 1943. Both State and Federal associations shared in this, the former with a 5-percent increase and the latter with one of 7 percent. Business (i. e. loans made), after having fallen by over 100 million dollars from 1941 to 1942 and to a still lower level in 1943, began to rise gradually in 1944. In 1946, loans rose by over 37 percent, to a total of nearly 290 million dollars. Although this is still below the peak of 362 millions in 1941, it represents one of the greatest relative increases recorded since the Bureau of Labor Statistics began to collect data on credit unions. Share capital and assets have increased contin uously, with the single exception of the depression year of 1932, and at the end of 1946 the credit union assets were approaching the half-billion mark. The sum of more than 50 million dollars was accumulated in the year under review. Re serves, although increasing as to amount, fell in relation to total loans outstanding from 19.4 per cent to 14.9 percent. Net earnings totaled $9,915,872, exceeding those of any year since 1942, and dividends on share capital amounted to $7,021,916. Table 1 shows the number of associations formed and dissolved in 1946. T a b l e 1 .— Trend of formation and dissolution of credit unions in 1946 Number of credit unions State All States End of 1945 _______________________ State associations "Federal associations Alabama _ _ Arizona Arkansas California Colorado Connecticut Delaware __________ _ ___ _ _______ ____ ___________________ _ ____________________ District of Columbia "Flori da Georgia _ Hawaii _ ___ _____________ __ __________ _________________ Tdaho Illinois _________ Indiana____________________________ Iowa _____ K a n s a s __ __ Kentucky Louisiana ______________________ ______ TWavpe Maryland ____________________ Michigan. _ Minnesota ____________________ _________________ Massachusetts __ _______ Char Cantered celed in in 1946 1946 Number of credit unions End of 1946 State Total Re port ing 8,973 5,014 3,959 364 207 157 369 218 151 8,968 5,003 3,965 8,715 4,954 3,761 78 23 27 444 106 239 6 1 2 20 4 80 77 2 22 22 3 13 5 26 451 108 238 115 174 129 98 33 787 300 190 114 25 439 105 235 9 108 164 126 97 32 784 294 190 113 100 100 129 37 124 36 58 536 241 317 7 19 20 10 10 114 160 138 96 32 762 296 195 114 104 131 38 65 539 248 325 2 19 5 2 2 1 5 14 1 44 13 19 9 5 6 6 3 7 3 1 1 3 2 2 12 12 9 13 14 22 66 542 247 317 Mississippi............................................. Missouri........ ................................ ........ Montana__________ . . . _____ Nebraska ll .......................... Nevada.... ................................ .......... . New Hampshire..... ......... ..................... New Jersey........ ......... ........................ New Mexico.................. ........... ............. New York________ __________ ______ North Carolina_______________________ North Dakota....... ..................... ........... Ohio.................................... ......... ......... Oklahoma....... ...................................... Oregon.............................. ..................... Pennsylvania........ ................... .......... Rhode Island__________ _____ _______ South Carolina............... ........... ........... South Dakota____ __________________ Tennessee....... .............. ..................... . Texas........ ............... ...... ......... ............. Utah____________ _____________ ____ Vermont...... ................... ...................... Virginia..................................... ............. Washington........................................... West Virginia....................................... Wisconsin....... ............................... ...... Wyoming............................................... End of 1945 26 396 42 88 4 16 246 14 754 173 99 583 71 71 586 41 35 32 117 338 64 10 85 179 64 537 18 Char Can tered celed in in 1946 1946 1 8 2 2 11 26 384 41 2 26 373 39 88 86 4 13 253 41 741 172 92 583 73 69 587 39 32 34 117 331 61 16 85 172 59 525 17 4 13 240 40 708 151 91 565 70 3 4 32 2 8 20 4 2 5 4 10 6 3 2 7 13 7 20 1 6 4 5 5 13 6 1 11 Re port ing 3 1 1 20 7 Total 1 20 29 19 2 11 End of 1946 6 23 1 66 563 38 28 33 114 320 60 16 80 167 56 521 15 15 Statistics of Operation, 1945 and 19461 The industrial States are those in which the greatest credit union development has taken place. Illinois was still the leading credit union State, at the end of 1946. It had 787 associations, with New York a close second (741), but four other States (Massachusetts, Ohio, Pennsylvania, and Wisconsin) had over 500 each. Only Illinois had » For the State-chartered associations the statistical data on which the present report is based were in most cases furnished to the Bureau of Labor Statistics by the State official—usually the Superintendent of Bankscharged with supervision of these associations. Reports were received from all the States except Iowa, Louisiana, and North Carolina. For these, esti mates were made. All of the information for the Federal credit unions was supplied by the Credit Union Division of the Federal Deposit Insurance Corporation. The figures shown for individual States include both the Federal and State credit unions, except in Delaware, Hawaii, Nevada, South Dakota, and Wyoming, which have no State credit union laws. over 300,000 members; four States (Massachu setts, New York, Ohio, and Pennsylvania) had over 200,000 each. Total business of nearly 37 million dollars in Illinois was approached only in Massachusetts, where the credit union loans in 1946 totaled nearly 31 millions. In both Cali fornia and New York, the loans made exceeded 20 millions. Table 2 gives data for the individual States on operations, the various funds, earnings, and dividends paid on share capital from earnings. In all States except Arizona, sizable earnings were made. In that State, where only four Statechartered associations were in operation at the end of 1946, their operating losses exceeded earnings by $118; the Federal associations showed combined earnings of $11,225. T a ble 2.— Operations , assets, and earnings o f credit unions in 1 9 4 5 and 1 946, by State [A few revisions were made in 1945 figures, on the basis of later information] Number of associations1 State, and type of charter Year Total Amount of loans Number of Reserves Divi Number of loans made Paid-in (guaranty Total assets Net earn dends on during members share capital fund, general ings Re shares year Made dur Outstanding reserve, etc.) port ing year end of year ing 1946 1945 State associations. 1946 1945 Federal associa tions— ............ 1946 1945 8,968 8,882 5,003 4,923 8,715 8,615 4,954 4,858 3,013,792 2,842,989 1,708,391 1,626,364 3,965 3,959 3,761 3,757 1,305,401 1,216,625 Alabama...................... 1946 1945 Arizona........................ 1946 1945 Arkansas. ................... 1946 1945 California................... 1946 1945 Colorado...................... 1946 1945 80 78 77 76 22 22 22 All States.................... 5,441,869 4,910,808 173,166,459 153,103,120 3,297,006 2,561,510 2,650,232 2,107,376 43,146 6,011,461 34,261 4,147,161 1,742 452,759 *1,367 *339,842 1,988 302,278 1,824 194,567 94,976 21,277,930 *80,839 * 13,926,276 13,845 2,662,140 *12,812 *1,717,274 2,806,828 1,929,705 249,351 135,613 161,700 113,615 14,523,890 8,171,810 2,114,455 1,349,980 4,411,515 3,490,315 419,254 340,278 336,930 280,647 27,509,068 23,072,165 4,463,875 3,534,312 131,104 331,965 18,558 16,331 18,059 19,108 1,623,145 1,192,163 230,624 193,990 4,903,209 3,908,510 461,877 370,860 369,260 314,409 32,198,135 26,986,463 5,044.688 4,017,658 155,159 94,715 11,107 7,580 8,445 6,194 662,017 *408,543 89,407 57,060 105,902 76,509 7,987 4,908 6,274 5,841 496,530 * 286,432 73,474 *43,773 45,964 41,755 1,191 1,003 8,290,371 4,821,201 171,018 132,166 3,952,384 1,744,467 102,161 71,371 12,691,011 10,886,299 216,584 177,527 419,544 323,390 11,574 9,824 13,655,416 12,517,942 232,991 192,605 256,351 246,542 5,080 4,463 175,781 170,143 4,279 4,169 174 160 129 132 108 108 164 156 126 128 62,417 62,095 39,007 35,202 35,660 33,837 36,466 *33,236 26,328 22,659 24,032 *22,879 5,199,057 3,825,016 5,458,971 3,683,161 4,152,776 *3,090,362 2,784,588 1,976,325 3,237,060 2,099,007 2,957,620 2,068,728 6,607,420 5,851,332 6,608,819 5,742,807 1,907,768 1,599,847 512,121 500,025 250,891 228,720 344,855 475,877 7,388,682 6,613,620 7,182,915 6,191,836 6,200,263 5,339,232 220,449 202,550 155,246 122,329 134,772 *104,657 129,220 115, Oil 136,367 89,530 97,199 *70,387 98 96 33 31 787 762 300 297 190 195 97 95 -32 31 784 758 294 295 190 195 35,667 36,112 4,395 *3,926 354,774 330,830 97,862 *93,502 39,802 40,779 10,250 11,116 1,714 1,405 233,738 * 238,519 53,525 *44,616 18,459 18,446 2,858,167 2,155,997 356,387 185,467 36,634,792 28,929,683 7,944,054 *5,755,008 2,447,519 2,397,601 1,454,437 930,429 194,480 102,729 20,048,907 14,011,222 5,517,037 3,529,359 1,929,470 1,771,588 10,043,821 9,920,711 454,030 362,180 55,913,391 47,144,644 14,351,434 12,893,396 5,580,513 5,278,339 279,018 245,751 12,875 12,587 3,113,888 2,931,533 520,015 605,425 277,184 282,273 11,082,943 186,193 10,558,538 173,028 477,112 8,076 382,466 5,009 59,917,192 11,175,760 51,250,789 938,364 15,519,997 219,966 14,099,255 *173,438 6,336,131 66,507 6,082,772 70,904 156,074 136,026 5,945 4,152 988,772 778,743 165,674 *134,715 51,011 45,410 114 113 112 100 110 100 26,437 25,068 24,969 *24,582 34,869 *32,405 10,360 9,273 26,939 25,109 16,769 13,056 16,493 *16,209 19,812 *17,008 4,175 3,672 18,417 *17,395 2,816,037 1,971,470 2,203,319 *1,841,919 3,204,388 *2,158,785 654,281 450,641 2,350,203 *1,942,507 1,779,831 1,082,077 1,972,472 *1,366,101 1,615,942 1,066,420 381,945 261,743 1,120,798 804,623 3,605,350 3,104,637 3,974,092 1,603,451 3,612,713 3,135,173 994,950 905,029 2,441,697 2,143,396 143,937 125,397 482,132 237,313 370,203 229,695 82,024 80,954 230,771 234,146 1946 1945 1946 1945 Illinois......................... 1946 1945 Indiana........................ 1946 1945 Iowa............................. 1946 1945 16 159,718,040 140,613,962 88,911 75,118 5,630 2,126 115 See footnotes at en<1 Of tat>le. 56,800,937 35,155,414 102 District of Columbia.. 1946 1945 Florida........................ 1946 1945 Georgia........................ 1946 1945 Kansas-....................... 1946 1945 Kentucky.................... 1946 1945 Louisiana.................... 1946 1945 Maine.......................... 1946 1945 Maryland.................... 1946 1945 114,811,825 78,268,844 235 180 9 9 23 26 25 451 444 108 106 238 186 Idaho........................... 722,493 601,929 $27,580,209 $492,973,012 $9,915,872 $7,021,916 24,506,019 434,627,135 7,819,810 5,878,412 22,138,340 319,806,553 6,618,865 4,471,674 19,595,211 281,524,015 5,258,300 3,771,036 31,155 28,258 3,661 3,285 2,642 3,059 191,411 *176,391 30,276 25,999 Connecticut .............. 1946 1945 Delaware8................... 1946 1945 Hawaii8...................... 1,654,928 $289,993,160 $185,370,366 $428,665,722 1,493,851 211,355,783 126,277,698 366,201,586 932,435 175,181,335 128,569,429 268,947,682 891,922 133,086,939 91,122,284 225,587,624 10 10 112 104 129 131 37 38 66 64 25 25 439 432 105 103 124 125 36 35 58 60 3,926,380 3,372,538 4,468,198 3,777,484 4,170,453 3,468,822 1,179,687 1,021,718 2,925,156 2,522,736 62,237 * 45,765 66,837 *43,203 84,927 *62,663 17,427 10,333 59,203 64,802 47,980 *31,846 45,287 * 28,979 66,105 *49,444 17,215 12,092 49,880 47,013 T a b l e 2 .— Operations , assets , and earnings o f credit unions in 19J+5 and 1 9 4 6 , — Continued Number of associations1 State, and type of charter Year Total Massachusetts............ 1946 1945 Michigan..................... 1946 1945 Minnesota................... 1946 1945 Mississippi.................. 1946 1945 Missouri...................... 1946 1945 542 539 247 248 317 325 26 26 384 369 Amount of loans Reserves Number of Divi Paid-in (guaranty Total assets Net earn dends Number of loans made on ings during share capital fund, general members shares Re year Made dur Outstanding reserve, etc.) port ing year end of year ing $53,958,477 $1,230,450 48,036,635 1,170,221 24,905,150 672,926 306,032 21,265,393 16,187,086 306,145 14,132,049 195,008 33,427 766,908 619,069 21,793 15,297,867 158,548 13,550,872 8 162,124 536 535 241 240 317 324 26 23 373 340 272,898 255,007 120,830 108,633 70,562 65,734 6,400 5,553 90,270 88,761 124,426 122,570 63,897 50,172 31,618 28,713 7,645 4,787 29,581 26,887 $30,874,856 22,917,547 14,225,143 8,683,432 5,239,870 4,598,703 1,368,466 462,150 5,302,391 4,868,432 $21,734,501 16,436,055 10,081,348 6,389,549 8,069,037 5,808,028 318,828 191,042 4,384,999 3,116,292 $48,578,487 34,835,929 21,921,864 1,897,722 12,090,885 10,445,037 656,251 394,429 13,868,150 12,350,600 $4,614,863 4,094,449 1,239,219 866,627 900,127 547,621 65,543 23,759 740,627 2554,521 2,742 2,952 9,468 8,795 124 108 3,164 3,017 50,547 50,390 670,847 440,493 1,706,821 1,253,906 16,185 791,102 760,720 6,817,385 5,809,257 415,432 261,103 1,033,802 730,378 12,895 9,386 740,034 640,080 3,491,649 2,416,596 763,832 631,187 2,449,138 2,258,249 31,219 30,220 581,161 521,102 13,335,231 11,997,931 21,978 18,386 134,967 119,160 1,309 1,412 103,955 89,449 465,644 526,189 824,170 679,020 3,036,993 2,806,406 33,207 32,588 1,606,342 1,352,729 15,048,622 13,734,068 20,946 14,370 46,746 39,891 595 487 39,864 32,026 298,572 268,184 13,077 10,049 26,194 229,888 479 456 9,688 9,896 235,405 196,245 $928,519 4 812,162 372,543 291,839 229,313 203,950 23,683 8,361 181,962 2 97,497 1946 1945 Nebraska..................... 1946 1945 Nevada8..................... 1946 1945 New Hampshire......... 1946 1945 New Jersey................. 1946 1945 41 40 39 37 88 86 89 4 4 13 16 253 247 87 4 4 13 14 240 237 7,504 7,175 20,009 19,381 649 584 5,705 5,698 102,732 99,042 1946 1945 1946 1945 North Carolina........... 1946 1945 North Dakota............. 1946 1945 Ohio............................. 1946 1945 41 14 741 753 172 195 92 93 583 583 40 13 708 721 151 168 91 87 565 567 2,298 1,304 263,760 258,397 29,867 35, m 11,420 11,766 207,461 188,522 592 333 138,830 127,090 18,344 17,801 3,419 3,300 112,553 84,927 128,185 46,262 25,643,199 20,785,191 2,143,234 2,078,429 1,395,406 1,115,835 19,265,370 11,896,005 70,755 25,220 16,065,988 12,608,773 1,339,649 1,934,614 1,116,775 805,445 10,908,262 6,012,876 131,619 97,912 34,854,458 32,051,449 3,029,319 4,390,565 2,996,741 2,153,649 26,620,636 22,665,272 5,699 5,057 3,229,914 3,381,877 274,307 168,470 50,463 38,597 1,132,367 788,602 139,693 104,125 39,570,348 36,700,864 4,071,354 6,012,566 3,110,472 2,233,424 28,509,831 24,223,640 2,798 623 856,892 770,253 88,472 32,680 32,719 29,759 492,848 321,372 816 454,645 558,692 50,774 2 23,266 19,115 16,756 368,422 278,563 1946 1945 1946 1945 Pennsylvania.............. 1946 1945 Rhode Island.............. 1946 1945 South Carolina........... 1946 1945 73 71 69 71 587 586 39 36 32 35 70 563 571 38 35 28 29 17,034 316,225 13,167 12,491 224,563 213,503 28,391 26,648 6,528 6,922 9,562 87,760 5,928 4,420 125,247 106,331 7,241 6,275 4,562 5,651 2,114,248 2 1,330,282 1,194,378 749,837 19,018,887 13,435,747 3,736,516 2,445,642 562,564 416,753 1,410,286 864,512 779,021 531,506 9,567,596 6,326,211 6,029,600 4,510,639 283,220 204,162 1,140,384 954,852 1,813,737 1,657,161 24,796,473 22,109,027 4,737,329 4,160,685 633,133 475,998 96,275 79,711 97,796 91,957 976,097 831,494 527,999 430,473 34,433 30,274 2,672,710 2,246,601 1,978,800 1,819,237 27,655,599 24,033,969 12,335,169 10,904,433 686,442 537,129 56,308 2 43,115 34,855 27,014 588,268 451,817 196,267 149,536 11,857 8,278 37,831 231,315 29,086 24,054 349,256 381,417 99,184 85,942 10,016 8,058 South Dakota8........... 1946 1945 1946 1945 Texas......................... . 1946 1945 Utah............................ 1946 1945 Vermont...................... 1946 1945 34 32 117 117 331 334 61 64 16 33 32 114 115 320 319 60 62 16 9 4,960 4,818 38,678 33,903 82,078 76,217 11,587 11,375 1,750 1,692 2,087 1,970 35,462 325,912 55,289 3 44,953 7,019 210,152 1,422 81,108 260,776 236,954 4,287,927 3 3,788,965 9,112,250 3 6,133,740 1,875,997 2 1,328,692 100,646 2 76,395 127,725 99,457 2,469,374 1,578,663 5,437,702 3,229,896 1,062,533 637,293 38,887 27,389 547,234 495,777 5,159,872 4,285,476 13,066,956 10,680,407 1,689,696 1,441,870 84,063 67,859 21,498 19,794 538,589 509,368 750,354 705,052 75,693 72,840 10,222 2,250 584,656 531,688 5,895,987 4,939,793 14,179,972 11,795,192 1,889,928 1,612,069 93,021 81,164 8,402 75,449 120,941 262,783 205,521 69,210 234,015 857 1,019 11,427 8,422 57,956 97,514 212,708 168,980 47,347 2 23,674 438 448 80 83 167 174 56 59 521 534 15 17 24,020 23,391 36,750 35,404 15,918 15,318 146,538 144,594 2,621 2,504 15,130 16,519 19,768 2 15,846 11,405 9,839 73,881 70,319 945 877 2,029,690 1,619,262 3,413,916 2 1,947,710 1,387,299 1,026,200 9,604,297 7,265,449 253,485 155,504 1,076,292 843,257 2,067,846 1,234,717 770,275 510,424 5,414,426 3,625,734 146,273 81,569 1,830,635 1,623,534 4,775,754 4,354,530 1,369,679 1,185,546 18,615,959 17,144,895 351,592 292,789 222,587 213,237 358,479 348,999 126,800 109,095 1,687,138 1,546,123 10,079 9,141 2,368,700 2,082,280 5,228,626 4,776,410 1,659,293 1,413,816 20,661,585 19,065,759 375,319 309,246 49,108 39,775 119,791 95,303 44,527 25,913 460,962 395,744 8,294 6,428 38,414 36,130 84,681 80,769 28,830 22,998 264,950 229,798 6,910 5,334 Montana..................... New Mexico 8_............ New York................... Oklahoma................... Oregon......................... Tennessee-.................. 1946 1945 Washington................. 1946 1945 West Virginia............. 1946 1945 Wisconsin.................... 1946 1945 Wyoming8.................. 1946 1945 Virginia....................... 10 85 86 172 178 59 63 525 534 17 18 66 66 68 20,101 i Most of the difference between the total number of associations and the number reporting is accounted for by associations chartered but not in opera tion by the end of the year and associations in liquidation which had not relinquished their charters. 8 Partly estimated. 2,8 88 2,101 * Federal associations only; no State-chartered associations in this State. 4 Includes interest paid on deposits by State-chartered associations. 8 Federal associations only; although State permissive legislation was passed in 1945 no associations had yet been formed under it. 17 Trend of Development, 1925-46 T able 3.— Relative development o f State and Federal credit unions , 1 9 2 5 -4 6 — Continued The trend of credit union development since 1925 is shown in table 3 for both State and Federal chartered associations. T a ble 3.— Relative development o f State and Federal credit unions j 1925-4-6 Item and year Total asso ciations Statechartered associations Number of credit unions: 1925....................................... 419 419 1929....................................... 974 974 19311..................................... 1,500 1,500 1932........... ......................... . 1,612 1,612 1933...................................... 2,016 2,016 19341...................... .............. 2,450 2,450 1935i......... ........................... 2,600 2,600 1936....................................... 5,355 3,490 3,792 1937..................... ................. 6,292 1938..................... ................. 7,314 4,299 1939..................... ................. 8,326 4,782 1940...................................... 9,479 5,269 1941________ _____________ 10,456 5,663 1942.................... ........... 10,602 5,622 1943..................... .................. *10,373 *5,285 9,041 1944............................. .......... 4,993 1945............................... ........ 8,882 4,923 1946........................................ 8,968 5,003 Active reporting credit unions: 176 1925........................................ 176 1929........................................ 838 838 1,244 1,244 19311............................ ........ 1932....................................... 1,472 1,472 1933. ................... ................. 1,772 1,772 1934.............................. ........ 2,028 2,028 2,1 2 2 1935....................................... 2,589 1936........................ .............. 2,734 4,408 5,231 1937...................................... 3,128 6,707 1938....................................... 3,977 7,841 1939....................................... 4,677 5,175 1940--....................... ........... 8,890 1941......................... ........... 5,506 9,650 1942...................................... 9,470 5,400 1943....................................... 8,983 * 5,124 1944....................................... 8,702 4,907 1945....................................... 8,615 4,858 1946.................................. 8,715 4,954 Membership: 1925........................ ............... 108,000 108,000 1929....................................... 264,908 264,908 286,143 19311..................................... 286,143 1932........ ......... ..................... 301,119 301,119 359,646 359,646 1933........................................ 427,097 1934............. ............... ........ 427,097 1935_____ ____ _______ ____ 597,609 523,132 1,170,445 854,475 1936..............- ......... .......... 1,503,826 1,055,736 1937._______ _____________ 1,863,353 1,236,826 1938________ _____________ 2,305,364 1,459,377 1939............................... ........ 2,815,590 1,695,358 1940............................... ........ 3,529,097 1941______ _______________ 2,132,401 3,144,603 1,797,084 1942.......................... ............. *3,023,603 *1,721,240 1943______ _______________ 2,933,507 1944..................... ............... . 1,629,706 2,842,989 1,626,364 1945..................... — ............ 3,013,792 1,708,391 1946....................................... Amount of loans made: $20, 100,000 1925........................................ $20, 100,000 54,048,000 54.048.000 1929 .................................. 21,214,500 21,214,500 19311............................. ........ 32.065.000 1932..................... — ............. 32.065.000 28,217,457 28,217,457 1933............................... ........ 36.200.000 1934....................................... 36.200.000 39,172,308 36.850.000 1935....................................... 84,541,635 1936........... ........................... 100,199,695 141,399,790 110,625,321 1937............................... ........ 175,952,433 129,058,548 1938........................ .............. 230,429,517 159,403,457 1939........................ .............. 306,092,416 201,105,625 1940— . ____ _____________ 227,959,046 1941....................................... 362,291,005 250,000,284 158,463,317 1942...................................... 1943....................................... * 208,807,888 * 131,542,506 131,621,582 1944....................................... 209,955,479 133,086,939 1945....................................... 211,355,783 175,181,335 1946......... ............................. 289,993,160 18 Federalchartered associations 1,865 2,500 3,015 3,544 4,210 4,793 4,980 5,088 4,048 3,959 3,965 467 1,674 2,103 2,730 3,164 3,715 4,144 4,070 3,859 3,795 3,757 3.761 74,477 315,970 448,090 626,527 845,987 1,120,232 1,396,696 1,347,519 1,302,363 1,303,801 1,216,625 1,305,401 $2,322,308 15,658,060 30,774,469 46,893,885 71,026,060 104,986,791 134,331,959 91,536,967 77,265,382 78,333,897 78,268,844 114,811,825 Item and year Total assets: 1926....... 1929....... 1931i.._ . 1932 .... 1933 __ 1934 __ 1935 __ 1936 __ 1937 __ 1938 __ 1939 __ 1940 __ 1941 __ 1942 __ 1943 __ 1944 __ 1946____ 1946____ Total asso ciations 00 00 $33,645,343 31,416,072 35,496,668 40,212,112 49,505,970 83,070,952 115,399,287 147,156,416 102,723,812 252,293,141 322,214,816 340,347,742 *355,262,808 397,929,814 434,627,135 492,973,012 Statechartered associations Federalchartered associations 8 $33,645,343 31,416,072 35,496,668 40,212,112 47,964,068 73,659,146 97,087,995 117,672,392 145,226,718 180,198,260 216,557.977 221,114,849 s 228,314,723 253,663,658 281,524,015 319,806,553 $1,541,902 9,411,806 18,311,292 29,484,024 47,497,094 72,094,881 105,656,839 119,232,893 126,948,085 144,266,156 153,103,120 173,166,459 1 Partly estimated. * Revised to eliminate residential credit associations in Nebraska. * No data. Legislation in 1946 State Legislation Few legislatures met in 1947; and consequently there were few enactments affecting credit unions. In Kentucky, chapter 161 created a department of banking and required credit unions to make a report on their condition on the same dates as State banks. An amendment (Act 316) in Louisiana modified the provision regarding the required set-aside (of 20 percent of annual earnings) for the reserve fund; hereafter these additions to reserve need be made only until the latter is equal to 15 percent of the paid-in capital (formerly 100 percent) and must be maintained at the 15-percent level. The Missouri credit-union law was revised in 1945. Those amendments were not covered in the legislative review for that year (Bull. No. 894) because the text of the 1945 laws was not yet available at the time the review was prepared. Further amendments were m ade in 1946, largely in order to meet the requirements of the new State constitution. These 1946 enactments provide (p. 718) that credit-union charters shall hereafter be issued by the Secretary of State (instead of the Commissioner of Securities) and that amendments to bylaws and any change in the place of business of the association must also have his approval. General supervision of credit unions was transferred from the Commissioner of Securities to the Commissioner of Finance. Credit unions were specifically exempted from the 1946 law (p. 1937) levying a tax on “ credit institutions.” An amendment (ch. 285) in New Jersey permits credit unions to invest in shares of State and Federal savings and loan associations. Credit unions were exempted (by ch. 174) from an excise tax of three-fourths of 1 percent of net worth, levied on financial enterprises. A New York act (ch. 633) raises to $100 (from $50) the amount of loan in excess of the borrower’s total shares and deposits that can be made without other security than the borrower’s note. However, for credit unions with capital of not less than $25,000 (previously $50,000) the limit is $200. Several changes were made in the Rhode Island law. Chapter 1745 provides for appeals from adverse decisions of the Director of Business Regulation to the Board of Bank Incorporation; in case of associations with over $500,000 in assets, it allows the payment of $3 to each member of the board of directors for each meeting; and extends the time limit for submission of annual reports to March 1 (previously February 10). Chapter 1765 requires examination of creditunion books by the Director of Business Regula tion (formerly Division of Banking and Insurance); no fees are specified for such examinations (pre viously the fee was $10 a day). Chapter 1801 limits the tax on credit union deposits which are deposited in banking institutions to 5 cents per $100. Federal Legislation Public Act No. 574 (79th Cong., 2d sess.) amend ed the Federal Credit Union Act as follows: (a) A credit union that knowingly charges or receives on a loan a rate of interest in excess of 1 percent per month may be required to forfeit all interest on such a loan, (b) Federal credit unions are permitted to issue shares to a member in joint account (with right of survivorship) with any person designated by the member, (c) All per sons handling money must be bonded, the associ ation to pay the cost of the bond, (c) The maxi mum permitted unsecured loan is raised to $300. (e) The coverage of the act is extended to include the Canal Zone. The amendment also eliminated the former re quirement that the treasurer of the credit union must notify the members of the credit committee of meetings of that committee, and outlines a more definite procedure as to liquidation of credit unions. 19 Bureau of Labor Statistics Publications on Consumers’ Cooperatives1 Bulletin Bulletin Bulletin Bulletin Bulletin Bulletin Bulletin Bulletin Bulletin Bulletin 665. 821. 843. 850. 858. 859. 890. 894. 896. 904. Organization and management of consumers’ cooperatives and buying clubs. 25 cents. Developments in consumers’ cooperative movement in 1944. 10 cents. Operations of consumers’ cooperatives in 1944. 10 cents. Activities of credit unions in 1944. 10 cents. Organization and management of cooperative and mutual housing associations. 20 cents. Developments in consumers’ cooperative movement in 1945. 10 cents. Operations of consumers’ cooperatives in 1945. 10 cents. Activities of credit unions in 1945. 5 cents. Nonprofit housing projects in the United States. 25 cents. Developments in the consumers’ cooperative movement in 1946. 1 For sale by Superintendent of Documents at prices noted. H ow to order publications: Address order to Super intendent of Documents, Government Printing Office, Washington 25, D . C ., with remittance in check or money order; currency is sent at sender’s risk; postage stamps not acceptable. 20 U. S. GOVERNMENT PRINTING OFFICE: 19 48
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