"Likewise there is a lot of middle men and drummers, the buyers at the producer's end, the wholesalers or middle men at the consumer's end, with speculator and landowner at both ends. All of these have to be supported by the system, and the dear consumer pays for it.
"The Cooperative store system, which was started in England 73 years ago, eliminates most of these waste expenses. The system has kept spreading at an astonishing rate; in Great Britain there are now 3 1/2 million members, and more than a billion of sales a year. Other European countries are full of these stores. Many of the retail stores have from twelve thousand to fifty thousand members; their sales run into the millions. They are federated in a wholesale agency which buys for them and manufactures on an extensive scale.
"By the economies thus introduced they are able to save regularly about 15%, besides paying interest on the capital employed, and accumulating a liberal surplus. It is simply a question of people getting together (all civilization is), contributing their own money and their trade, and thus avoiding all the waste expenses.
"It is a very democratic plan; anybody is welcome to join it; every member has one vote and no more, they elect their directors, the directors elect the managers, and the managers employ the clerks. They sell at the market prices and every three or six months take account of stock and rebate the profits in proportion to each member's purchases, with half rate to non-members.
"It appeals to the economical sense of the ordinary housekeeper, and to the ethical sense of those who want no advantage of their neighbor. It prevents some from getting unduly rich and it helps to keep many from being unduly poor.
"The same principle has spread into farmer's work, especially Creameries. In Cooperative Creameries and Stores Russia has grown faster in the last 15 years than any other country, having at last reports over thirteen million members. This orderly getting together for common social needs has much to do with the orderliness of the Russian Revolution.
"The United States has made large progress in producers' cooperative associations, but not much in stores.
"I have in New Orleans a system of 65 stores on a modified system; it is a cooperative association but we sell at as low prices as can be afforded, for cash in hand. The sales amount to about 2 1/2 millions, the most of it in the winter. The Association owns a Bakery, a Creamery, Condiment Factory; and Coffee Factory, and a 1550-acre plantation. We are able to undersell the market about 20%.
"People anywhere can make a cooperative store if they take it seriously. There should be about 200 members and $2000 in cash to start with: then get an honest and intelligent manager; start with a grocery, buy and sell for cash, either on the Rochdale plan of selling at full market prices and dividing the profits periodically, or on my plan of selling as cheaply as can be afforded. In either plan it works out into producing a large part of the goods sold, thus eliminating entirely the superfluous middleman.
"Three acres and Liberty is the correct way of producing a living; with the adjunct of a cooperative store to do the selling of the surplus produced and the buying of goods needed, the small farmer is free from all the waste and trammels of trade."