“The housewife’s pocketbook can beat its owner at keeping thin.”—H. C. OF L. PROVERB NO. 5.

Mr. Larry lounged in the doorway, watching Mrs. Larry array herself for her next adventure in thrift. Lena, the young maid, similarly occupied, sat on the shirt-waist box with Larry, Junior, and his wee sister snuggling close.

“The money for the milkman is next to the sugar can,” announced Mrs. Larry, settling her hat above anxious brows. “And you may boil rice for the children’s luncheon.”

“There ain’t any, ma’am,” answered Lena.

“Oh, dear!” sighed Mrs. Larry, reaching for her veil. “I didn’t have time to go over the groceries yesterday. When you take baby out, buy a pound package at Dorlon’s.”

“Yes’m,” murmured Lena. “But he’s a robber, Dorlon is. Our grocer sells two pounds for what Dorlon charges for one.”

“Yes, yes! But that is loose rice. The package is cleaner.”

“Then don’t I wash the package rice, ma’am?” persisted Lena.

“Why, of course, you do—you wash everything,” answered Mrs. Larry, a bit irritably, as she drove a veil pin home. Whereupon Lena, the tactless, pursuing her own line of reasoning, remarked with a mere suggestion of triumph:

“If I gotta wash it anyhow, what’s the difference whether it’s clean or dirty to start with?”

Mr. Larry suddenly ducked out into the hall. The telephone bell rang sharply, and Mrs. Larry reached for her gloves:

“There are the girls now. One more kiss, dears, and then mumsie is off.”

The babies watched her going with mute disapproval. Lena was all right in her way, especially during the daily outing, but mumsie was a most wonderful person and greatly to be missed. But then, when one is properly trained, one does not cry; so Mrs. Larry made her departure without the accompaniment of childish wails. Nevertheless, the lines in her brow had deepened, and as Mr. Larry started to open the door for her, she laid a hand on his coat sleeve.

“Larry, dear, these investigations of the high cost of living are getting on my nerves. I’m leaving the babies too much with Lena, and I haven’t saved a penny yet!”

“The way of the investigator is hard, eh?” murmured Mr. Larry, as he bent for a farewell kiss. “But think what you will save when you have found out the right way! Anyhow, I believe it is good for you to go about a bit. You were sticking too close to the house before you started to look for short cuts in economy. Here you are—out of the house and away at eight o’clock.”

Claire, Teresa Moore and Mrs. Norton were waiting in the reception hall.

“So you’re all off for Montclair, home of the Cooperative Store, the Cooperative Kitchen and the School for Housemaids!” exclaimed Mr. Larry. “May I have the honor of escorting you as far as the Hudson Terminal?”

“Indeed, you may!” answered Teresa Moore, the audacious. “And you may help the Cause by paying our fares—all of ’em.”

“Delighted!” answered Mr. Larry, falling into step. “Especially as I expect these investigations to make a millionaire of me some day.”

“You may laugh, but I firmly believe that in cooperation, or, at least, the cooperative store, lies our one sure hope of reducing the cost of living. It works two ways—it actually cuts down the price of foodstuffs, and it teaches the woman thrift through investment in stock. You know this has really been proved.”

“No! Where?”

“In England. The International Cooperative Alliance was originally founded to reduce the cost of living for the underpaid working classes. From a sociological and economic experiment, it has grown to be the soundest and most democratic organization of its kind in the world, numbering among its shareholders men and women from all walks of society. Before the war broke out, families to the number of two million seven hundred and one thousand were buying their food, clothing and homes through the Alliance. It employed more than eighty-one thousand persons, ran a dozen factories to supply its different stores, and it had its own fleet of steamships for transporting the output of its various plants, which included plantations in Brazil and Ceylon. It sold more than half a billion’s worth of goods annually on a margin of two per cent. And in 1913 it distributed among its stockholders of cooperative members profits amounting to eleven million dollars. Think of the war breaking down an economic structure of such magnificent possibilities.”

“Perhaps it will survive even war. But I don’t know what you mean by its stockholders buying homes through a cooperative store.”

“Oh, that is quite simple,” explained the enthusiastic Teresa. “A member or stockholder decided that he wished to use his interest or profits to buy a home. When the next dividend was declared, he did not draw out his money. When his dividends had accumulated in the association treasury to the amount of one-fifth of the purchase price on the home he desired to own, the association advanced the remaining four-fifths, so that he could pay cash for his home. The association was repaid by future dividends. In other words, he could buy a home through the association without loading himself with the usual mortgage and its high rate of interest. The association was safe because it knew dividends would be forthcoming, and that once a man or woman is started on the path of thrift it amounts to an obsession to save and to possess.”

Mrs. Moore stopped to open her bag and assure herself by means of a wee mirror against its gray lining that her hat was at the correct angle. Mr. Larry studied her in frank amusement.

“Teresa, you are a singular combination of the frivolous and the practical. Can you leave your mirror long enough to tell me how they have managed to keep this English association free from graft?”

“Through the high ideals of the men who founded and conducted it. The association has never deteriorated from its original design of saving through honest cooperation into any scheme whereby the mass of stockholders would save only a mere trifle, while the executive officers built up private fortunes through trickery, watered stock, et cetera.”

“And you believe that men with the same high ideals can be interested in such a project here in America?” inquired Mr. Larry.

“Finding the right men and women to act as directors is not the problem,” answered Mrs. Moore soberly. “The trouble is to convince individual stockholders, especially housekeepers, that cooperation eventually spells saving—a lower cost of living. It may be the fault of our bringing up, but we women seek economy in only one of two ways—an actual and considerable reduction in the price of goods sold, or the money we put in the savings bank. We lack the economic vision of the man, which sees money invested, paying a profit six months or a year ahead. The feminine instinct for chasing so-called bargain sales blinds her to the bigger and safer saving which cooperation represents. Here in America cooperation is a form of fanaticism, not of every-day common sense.”

They were all sitting together on the elevated train, and Claire remarked crisply:

“Then you consider that men have higher ideals than women?”

“No,” said Mrs. Moore; “but in financial matters they have a broader vision. For example, a number of Boston men who had studied the plans and ideals of the English association started a cooperative society under the name of The Palmer Cooperative Association. It was designed especially to help the employees of the New York, New Haven and Hartford Road and its allied branches, to reduce the cost of living. About two thousand of the railroad men subscribed to the stock, but they were very slow about paying up. The men believed in it, but their wives did not patronize the store. This was largely because all the business was done on a cash basis. There was no sending Johnny or Jennie around to have something ‘charged.’ Goods were delivered only when bought in large quantities, and on certain days.

“The women did not figure that in the average retail store delivery adds eight per cent. to the cost of goods. Then the wives of the subscribers seemed to think that they should get goods at cost, because their husbands held stock. The manager of the store, an experienced buyer, saved them from fifty to seventy-five cents on a five-dollar order. The profits of the store were to go back to the stockholders in the form of dividends. The women, and some of the men, could not grasp the idea of future saving, of dividend paying. They felt that they were saving very little by paying cash; they were annoyed by having to make out orders for large quantities, when they had been accustomed to send round to the corner grocery three or four times a day. And so the association died.

“When you figure that those allied roads employ sixty thousand men, each of whom would spend a minimum of four hundred dollars a year in a cooperative store, you find that such an association would do a business of twenty-four million ($24,000,000) dollars a year. At least three per cent. would go back to the men in the form of a dividend, amounting in all to seven hundred and twenty million dollars. Then, allowing an average saving of five per cent. on goods purchased, you find that the store could have saved its stockholders one million, two hundred thousand dollars at the time of purchase, plus seven hundred and twenty thousand dollars in dividends, or one million, nine hundred and twenty thousand dollars in a single year. This shows you what one group of industrial workers, cooperating in the purchase of food alone, could save themselves. The beauty of this system is that the more you spend the more you save—”

Mr. Larry rose, laughing.

“It’s a good thing that this is my station, otherwise you might inspire me to resign my position and start a cooperative store. Well, a pleasant day to all of you, and more knowledge on the subject.”

The four investigators nodded gaily to their vanishing escort and then settled down to the discussion.

“So you think the average housekeeper would rather chase the rainbow of special sales than the more solid investment represented by a cooperative association?” asked Mrs. Larry.

“Not when they have grasped the true idea of cooperative buying,” responded Mrs. Moore. “Boston now has a very successful association known as the New England Cooperative Society, which uses the Rochdale System in operating its stores. Its headquarters are at 7 Water Street, and it operates the following stores in that city: Charles River Cooperative Market, South Boston Cooperative Market, Tremont Cooperative Market, Devonshire Cooperative Market, Charlesbank Cooperative Market.

“I understand that markets of the same sort will soon be opened in Allston and Melrose. Bucksport, Maine, also has a market under the direction of this society. You remember that night at our house when you met Mrs. Gregory of Boston? She told us that she belonged to a marketing club in which the women took turns in marketing for the entire organization. This saved money, but it was quite a tax on the individual members. She did not know there was a cooperative store in Boston until she heard it discussed at our house. When she returned home she bought a ten-dollar share in the New England Cooperative Society, resigned from her club and now does all her buying at the Charles River Market. Only one share in a local society may be held by any one person. Those who wish to invest more than ten dollars may do so by purchasing what are known as preferred shares in the New England Cooperative Society. These shares have a par value of ten dollars and draw dividends at the rate of seven per cent. Shareholders, you see, not only draw dividends, but they receive discounts, given at stated periods, in proportion to the amount of cash purchases by members.

“The New England Cooperative Society, incorporated under Massachusetts laws, is required by those laws to maintain a certain reserve, but all net profits of the stores above this reserve are distributed in discounts and dividends.”

“My dear Teresa, you talk like a man,” sighed Mrs. Larry. “Can’t you put that into woman-talk?”

Teresa Moore patted her friend’s hand in a comforting way.

“I’ll try. The cooperative society secures as managers for its stores men who know how to buy for markets which have earned from fifteen to twenty-five per cent. net on the capital invested. Now, if you own shares in that association, you get your share of the profits. Do you see that?”

Mrs. Larry nodded.

“You also buy your groceries at the lowest possible price for desirable goods. Instead of buying ‘seconds’ in groceries, and inferior meats and fresh vegetables, fruits, etc., at slightly cut rates, you pay a fair market price for the best the market affords, and at some future date you get part of what you have paid out, in the form of discounts and dividends. Is that clear?”

“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.

“Polly sent me one of the price lists or order sheets, and on comparing it with what I pay at my own corner grocery, I find the Washington cooperator saves not less than two per cent. on her purchases at the time of the purchase; in some lines of goods it runs as high as ten per cent. but the real saving comes in the form of dividends.

“And with the Civil Service Cooperators, Incorporated, as with all societies of this sort, the woman must figure ahead in order to save. She must have money on deposit at the store or send check or cash with her order; she must order in quantities practically for the week, and she must be satisfied with a weekly or semi-weekly delivery. This plan absolutely breaks a woman of the expensive habit of sending maid or child to the nearest grocery store where she can have goods charged and delivered at any hour of the day. I presume we will find the same conditions at Montclair.”

“Dear me,” sighed Mrs. Larry, “cooperative stores present a very complicated problem.”

“Indeed, they do,” admitted Mrs. Moore. “All economic questions are more or less complicated, and it’s a great pity that we women are rarely educated to see financial administration in our homes as anything deeper than what we pay for actual groceries, meat, vegetables, etc., at the actual time of purchase.”

“You must not expect Dahlgren equipment and decorations in this cooperative store,” suggested Mrs. Moore as she led the way through the crisp sunlight down Montclair’s well-kept streets to 517 Bloomfield Avenue. “Dahlgren adds the cost of mirrors and white marble to your cuts of meat, while a cooperative store is run without frills, at the least possible expense.”

Thus prepared for simplicity, if not down-right unattractiveness, in the cause of economy, the New York quartet almost gasped on entering the store of the Montclair Cooperative Society. If there was an absence of glittering mirrors and obsequious clerks in white caps and aprons, there was no lack of up-to-date equipment and methods. Efficiency and success shone in every corner of the plant, consisting of the three-story and basement brick business block with a forty-foot front.

“In a material way this plant is one of the things we have to show for our three years’ existence,” explained Mr. Leroy Dyal, the manager of the store. “And when a cooperative society has weathered its first three years, it may feel comparatively safe.

“The store is owned by over four hundred residents of Montclair, and run in their interests by a board of directors as follows: President, Emerson P. Hains; vice-president, Mrs. Alfred W. Diller; secretary, Miss Florence Hains; treasurer, Henry Wheaton; directors, Ralph T. Crane, W. W. Ames, H. B. Van Cleve, Edgar Bates, George French, Mrs. William Ropes. You will note that we have women on our board of directors and they are extremely interested and active.

“All business is cash, or the members may, if they wish, make a deposit and draw on that. Once a week I make a budget of prices, and on comparing them with the prices in other stores of the same class I find that they run about four per cent. lower. In addition to this, while we will deliver goods, we allow a discount of five per cent. to members who carry goods home. Therefore, the housekeeper who markets here and acts as her own delivery man, using her motor, carriage or trolley, or even the family market basket, and walking, saves at the time of purchase about nine per cent. In addition to this, as a shareholder, she is paid her share of the profits on the business we do. Of this I will speak later.

“We do everything we can to popularize this store, not only with the stockholders, but with the general public. You see, we have both a dry and green grocery department, a meat and a fish department. On Saturdays we have a special sale, known as the ‘no rebate and no delivery sale,’ which runs from five to ten P. M. This is so popular as a matter of economy with Montclair people that we have great crowds during those hours, many customers arriving at four-thirty and waiting the half hour till specials are on sale. This gives us a chance to sell off all vegetables and other perishable foodstuffs that otherwise must be carried over the week-end. I mention it merely to show you that a cooperative store is not necessarily high-brow, as some women think. We try to follow all modern business methods—but we permit no substitution, adulteration, nor any other of the evils of so-called modern merchandising.

“To explain the theory on which our store and society are run, I will say that the requirements for this, as for all cooperative ventures, are an adequate organization of consumers to act in their own behalf, and a first-class plant. Our aim is not merely to transfer to the pockets of our shareholders the small net profits made by other storekeepers, but so to manage the journey of food products from source to kitchen as to cut out certain evils from which the housewife suffers—the cost of duplicate or wasted motion, and the adulteration and unsanitary conditions which surround the handling of products. We eliminate many of the cost items of ordinary retail trade in competition, and we protect the society from loss by doing only a cash trade.

“Our shares have a par value of ten dollars. Members may own one share or more. The stock is non-assessable when fully paid, and the subscriptions may be paid in cash or at the rate of two dollars per share down, and the balance at the rate of one dollar per share monthly. All sales are recorded on double sales slips. One is kept by the shareholder and one by the society.

“After effecting an organization and proving the honesty and sincerity of our members in supporting the venture, the next step was a plant which would insure the most efficient handling of the trade.

“Of vital importance is to provide a proper medium for keeping fresh foods, such as meat, vegetables, fruit, etc. This means an abundance of dry cold air, in place of the ice supply with its unhealthy dampness and general unreliability.

“For this purpose we have installed in our basement a Brunswick refrigerating machine, which produces an amount of cold air equal to the melting of six tons of ice daily. This cold air is piped through ammonia cooling pipes which run through our glass counters, wall cases and the regular refrigerators. This system of cold air protection saves enormous waste in handling the stock. We also have driven our own well one hundred and twenty-seven feet deep, which is capable of furnishing thirty gallons of pure water per minute.

“Our plant follows in principle and construction the superb modern public markets of Providence, Rhode Island, and Worcester, Massachusetts. It keeps the stock sanitary and enables us to regulate temperature in different refrigerators to meet the requirements of different sorts of food.

“All the foods sold in our delicatessen department are prepared in our model kitchens on the floor above.”

The New Yorkers were shown through these kitchens, where colored women, immaculately dressed, were preparing delicious salads. They studied the method by which running water in the fish department positively eliminated all odor. They were especially impressed by the freshness and crispness of the vegetables and the high standard of dry groceries on the shelves.

“The best of everything,” murmured Mrs. Larry, “and at exactly what saving?”

The manager smiled at her earnest query.

“That can not be expressed in round figures. It varies. As I said before, I think our prices average about four per cent. below those of the competitive stores, largely because they must spend money to attract trade which we hold through our membership. The housewife who takes home her goods saves an additional five per cent. The member who attends our Saturday evening sales saves a little more. And, finally, stockholders get back money in these two ways:

“First, regular interest on their investment of not more than six per cent.; second, gains or profits which the store has made, redistributed every quarter at the rate of five per cent. on the amount of purchases recorded on duplicate sales slips.”

“Then it is a success, your store and your society?” asked Mrs. Norton. “And the women believe in it and support it?”

“They certainly do. They have the true cooperative spirit.”

“And what of your cooperative kitchen and your housemaids’ school, and——”

“Those? Oh, they are another story! The cooperative kitchen is managed by a different society, and the school for housemaids by the Housewives’ League.”

“Shall we see them?” inquired Mrs. Moore, as the quartet walked down the sun-bright street.

“Yes, let us make a day of it in this remarkable community with its cooperative spirit, even if, as Mr. Dyal says, it is another story.”