The latter part of the nineteenth century saw strange and novel influences at work in the competitive system of the civilized world. The great advantages accruing from co-operation had become apparent, in those days, to a few, and these employed its methods to a limited extent to acquire vast fortunes for themselves. Such were corporations, trusts, great combinations of capital, department stores and syndicates. These concerns, establishing themselves in every industrial center, absorbed nearly every industry. It was impossible for the individual, the small capitalist, the man, to compete with such institutions, and yet those who were the greatest gainers from them were the most zealous advocates of the competitive system. Wanamaker’s vast department stores in Philadelphia and New York city were good illustrations of what the co-operative institution, employed against the competitor, could accomplish, both for the one man who owned it and against the many who were asked to compete with it.
The owner grew fabulously rich. There was no limit to his acquisitions and he swallowed up all competitors who could not do business on the same system. Commercial house after commercial house fell before Wanamaker. Man after man became bankrupt, not because he lacked business ability, or was idle or inattentive, but because he could not compete with Wanamaker. So it came to pass that in Wanamaker’s great marvels of industry, the department stores, some of the brightest, shrewdest and most expert business men were serving as managers of departments, floor walkers, clerks and bookkeepers. It was, indeed, a vast, ceaseless and mighty army of co-operators intent upon making the fortune of one man, and with such a combination competition could not compete.
In Idaho our colony accidentally discovered the use to which they could put this great “idea” which enabled Wanamaker to conquer the commercial world and force the princes of industry to become his willing slaves. This was the undesigned conquest of Boise City by the Co-operative Commonwealth. When the first Great Council met in January, 1904, our Co-operative Hotel had absorbed the entire business of all other hotels in the city.
All our productive power was so fully employed that we were able to furnish board and lodging for a small sum, of a quality such as few hotels in cities of a hundred thousand persons offered their guests. Our department store was equally successful.
It cost us nothing to advertise.
We painted no signs.
We paid no rents.
The only expense we incurred was the labor we expended, and labor was as plentiful as humanity.
Besides this, we employed labor-saving machinery without stint, and thereby multiplied the enormous power of co-operative labor many times.
We were better and more powerfully prepared to destroy competition than Wanamaker, because we had no expenses and wasted neither time nor money in inviting trade.