Piet Vlag

“ The working people of the United States are certainly not poorer than the working people of Germany, Belgium and Denmark. The working people of Europe managed to raise sufficient capital to establish some of the largest and most powerful distributive co-operatives in the world. There is, perhaps, one difference. The German party press officially urged the people to join the co-operative and stand together solidly. We have as yet not been able to induce the Socialist press in the United States to take any such stand. ”

“ The European Socialist movement appeals to the industrial factory slave through industrial unionism.
They never lose sight, however, of the fact that Socialism is the goal, and not a mere increase of wages.
They teach the workers that their only hope to combat capitalism effectively, lies in collective, concentrated and well-organized action.
Furthermore, the European move rent appeals to the wives of the workers through co-operatives. They do not preach to these women that a decrease of the cost of living secured through co-operatives will settle the economic problem. ”

“ When, however, a similar organization proceeds to employ non-partners in the concern, and exploits them in the usual capitalist method, it ceases to be a co-operative and is transformed into a corporation.
A co-operative store organized by the American Wholesale Co-operative is conducted in the following manner: The goods are sold at the established market prices; not higher nor lower. Good quality is insured. The goods are purchased at the lowest possible prices. Profit is made on the purchases of the consumers. This profit is used, in the first place, to pay the operating expenses. ”

“ They bind them together on an economic basis into a well-organized body of men and women. These men and women are much better fitted to combat the capitalist system than the type produced by our present industrial system in the United States. The type which is willing to suffer all sorts of abuse and slaver with the silent hope that some time in the future he will be a small employer or business man himself.
The methods of the Socialist movement in the past did not reach the type above mentioned. ”

“ Many people seem to believe that the American Wholesale Co-operative is a concern started by a few well-meaning individuals to benefit society at large. Let us assure you, once for all, that the American Wholesale Co-operative is no such paternalistic institution. ”

“ Not as a vote-catching machine, as Tammany Hall uses it, but to bind the workers together with economic ties in a highly efficient and strongly centralized organization. When this is accomplished, we will get a hearing from the workers.
Now as to the educational side of co-operation. What will co-operatives do for the workers from the educational point of view?
The workingman of the present type, whose sole occupation consists in doing a minute specialized part of the industry in which he is engaged, necessarily has a very limited mental horizon. ”

“ The workingman of this type believes that we are very good and sincere fellows, but that we are dreamers, and far off. This type of American workingman considers himself practical. He does not really approve of the present grafting system, but considers that under the system it is better to be on the inside than on the outside: therefore, Tammany Hall appeals to him. ”

“ Many people with a considerable amount of gray matter under their hair have told us that co-operation could not be practiced in the United States as it was practiced in Europe, because different conditions exist here, and therefore different methods must be employed. ”

“ A woman who has purchased during the six months $200 worth from the co-operative, and thus saved from about $40 to $50, is taxed with $6, or 3%, on $200 to pay the running expenses. There is no fear that she will not pay this, as her original investment of $10 covers her share of the operating expenses. Unless she pays she cannot continue to deal with the society, and her membership money is forfeited. ”

“ If they break the rules of the organization, they are punished economically. They either lose part of their dividends, or in case of labor organizations, fines are imposed upon them. Thus the members of these economic bodies are taught organization. ”

“ Strange as it may seem, we are led to believe that with all the enlightenments on the subject the Socialists do not as yet understand the capitalist system. Many still prefer to give their little savings to a bank, where they receive 3% or 4%, or nothing at all. ”

“ For two very good reasons: First, because there are so very few paternalists; and, secondly, because we do not believe that any movement can gain real force until it is operated by and for the people. ”

“ These banks loan their money to small stores, larger stores and manufacturers at 6% to 7%. The stores use this money in turn to exploit the working class, or the original investors of the money, out of from 20% to 25%. ”

“ Then each member orders his goods through the secretary in bulk, weekly, semi-monthly or monthly—whatever is decided upon by the local organization. These bulk orders are combined by the secretary so that they form wholesale quantities. A wholesale quantity means an unbroken package. ”

“ No profit is added. In this manner the consumers save directly from 20% to 25% on their purchases. The cost of operation is very low, and usually amounts to about 3% to 4%. It is low because no store is needed. A packing room is sufficient, and the putting up of the orders can be done in the evening by some one after work, at a very low cost. ”