“Perfectly,” said Mrs. Larry. “Then it must also follow that if a store is not properly run, there will be no discount and no dividend.”
“That is quite true,” said Mrs. Moore; “but the history of cooperative societies in America proves that there are more failures from lack of cooperation than from bad management. As soon as shareholders grasp the idea and really cooperate, the store is a success; but, as I said before, one must believe and understand cooperation to realize the benefits which will eventually accrue from membership. It is what you might call a waiting game.”
“Are there many such associations in the United States—in the West, for instance?” inquired Claire. Then she flushed furiously.
“I really have no idea how many,” answered Mrs. Moore tactfully, ignoring the blush. “But occasionally a guest tells me of a new society formed in her community. For instance, Polly Sutton, of Washington, was visiting me only last week and told me of the Civil Service Cooperators, Incorporated, which has a very nice new store in her neighborhood.”
Mrs. Moore opened her address book.
“Yes, here it is—located at 1948 New Hampshire Avenue, N. W., in a very fine residence district. This society had a very peculiar start. In the Forestry Service, a small group of men wanted to purchase a superior brand of butter made in Minnesota. To secure it they had to order in large quantities, and they were amazed at the large saving eventually made. They had been banded together for the avowed purpose of increasing their efficiency, protecting and promoting common interests, cultivating harmony and good fellowship, and maintaining high ideals in connection with public service. Their success with purchasing butter in quantities showed them the practical possibilities of the phrase ‘promoting common interests.’ Gradually the social and civic betterment projects were abandoned, and the club devoted itself to buying household supplies.
“After a year the members decided to incorporate, with a capitalization of three thousand dollars. The shares are the smallest of any cooperative enterprise I have heard about. They are of two kinds. There are five hundred shares of common or voting stock, at one dollar each. No member may hold more than one share of common stock, and every member must take one. Preferred stock costs five dollars a share, and each member is expected to hold at least one share. By a very helpful arrangement the entire five dollars does not have to be paid at once. If one dollar is paid in toward a share of preferred stock, the remainder may be accumulated through dividends, though on stock not fully paid up only half the declared rate is allowed. Preferred stock gives no voting privilege, but it receives a regular six per cent. interest each year out of the profits.
“The society soon outgrew its original quarters, which were in a basement near the heart of the business section, and it began to look around for a new location. This was chosen by actually comparing the size of the orders received from shareholders in different parts of the city, with the map of the city itself. About this time, Mr. J. P. Farnham, an expert accountant, who had been auditing the association books, became imbued with the cooperative idea and was made manager of the store. He believes that cooperative business solves the bulk of our high cost of living problem, and he has developed many good ideas. He has tried out the parcel-post plan of shipment and secured direct dealings with farmers. The store is simply fitted, but immaculately clean, and the white-washed cellar, dry and sweet smelling, is a joy to the women who get a peep into it.
“Every Saturday morning each member receives a printed order blank on which are listed the two hundred and sixty odd items carried in stock for the coming week, with the current prices. A printed news letter usually accompanies the order sheet, giving notes of the business, frank explanations of changes in price, news of directors’ meetings, and serving generally to keep the members in touch with one another.
“While telephone ordering and personal calls at the store are permissible, more housekeepers prefer the mail order system, as the fact has been well established that the quality of the goods never varies, and that full weight may be depended upon. By Tuesday morning these order sheets must be received at the store, accompanied by check or money order for the amount indicated. This business is not only on a cash basis. It actually requires its pay in advance. But as it can proudly point out that it has never lost a dollar in bad debts, the shareholders do not object.