THE INSURANCE OFFERED BY CO-OPERATIVE FARMING.
"I notice, Fillmore, that you mention the borrowing of ten thousand
dollars from the insurance fund; the same being a part of the
accumulated profits on the business of the store and restaurant. Tell
me; how is it possible for so large a sum to be saved in such a short
time?"
"A complete answer to your question, will bring up the whole subject of
insurance; which presents some interesting problems. I will first try to
give you the basis for such an amount of savings. The net per-diem pay
of $2.50 for each adult member of the company, will give an annual
income of a little more than $900. If we include an added pro rata for
the children, each one will spend annually at least $450 with the store
for goods; and $350 with the restaurant for food. Our statistics show
much larger sums; but these will do for an estimate. Taking these
figures for a basis, we find that the annual sales made to our own
people by the store and restaurant combined, reach the startling sum of
$400,000. A net profit of five per cent on this amount, gives $20,000
each year to the insurance fund. At this rate, the profits for thirty
months, reach the goodly sum of $50,000. To which we may add $2,500
more, as profits on sales to the amount of $50,000, made during that
period by the store and restaurant, to people from surrounding
communities. Altogether, we have a grand up-to-date total for the
insurance fund of $52,500. These profits will continue to increase with
larger sales to outside people; also with the increased wages or incomes
of the co-operators, as the products and profits of the farm continue to
grow.
"Such favorable statistics are very encouraging. They demonstrate that
only a five per cent profit will be needed, to meet all future demands
against the insurance fund, even when the colony has its maximum number
of children and superannuated co-operators. The remaining profits, which
in some departments of the store are large, may wisely be devoted to
educational and missionary work.
"From another point of view, this eloquent array of figures, has an
additional value. They show conclusively, that the restaurant alone
furnishes a home market annually for $175,000 worth of farm produce:
beef, mutton, pork, lard, honey, syrup, milk, butter, cheese, eggs,
poultry, vegetables, fruits and grains.
"If we consider the sales made by the store, we find after deducting the
cost of raw material, that at least fifty per cent of the goods
purchased by our people, are really the products of the skilled labor of
the farm: such as crockery, furniture, willow ware, picture frames,
brushes, clothing, underwear, bed furnishings, and goods from the
tailoring, dress-making and millinery departments. From this showing it
will appear, that the store becomes a home market each year, for farm
products to the amount of $112,500. To this, let us add the sums of
sales through the restaurant, and those made through the markets of the
outside world. Altogether, we have a grand total of $787,500 for the
market value of farm products last year.
"Does this exhibit appeal to you as a reasonable basis for the
accumulated savings named in your questions?"
"I am sure the exhibit has astonished me greatly! Your figures and
statements are both fascinating and convincing. They are all, most
excellent arguments in favor of co-operative methods. I now perceive
that even on the basis of present conditions, a five per cent profit
turned into the insurance fund, at the end of the first ten years, will
amount to the extraordinary sum of $200,000. With this magnificent fund,
you can afford to extend the scope of your original plan! How will you
dispose of it? At what age do you propose to retire the active workers?"
"Yes, our original plans have been changed, and very much enlarged. The
insurance fund has grown so rapidly, that it was deemed wise to expend a
portion of it, in building a hospital for the accommodation of our farm
people, and perhaps a few outside patients. Last year, a two-story and
basement brick building, was erected just in the heart of our finest
shrubbery dotted lawn, some distance from the public square. It is large
enough for about one hundred patients. Viewed from any point, it
presents a charming appearance. It is conceded by all to be the
handsomest structure on the farm. Inside, with its polished floors,
magnificent windows, large rooms, high, beautifully frescoed walls and
ceilings, dainty couches, cozy chairs, and wide, breezy halls, with
picture-laden walls; every condition is present to satisfy the highest
ideal of sick-room comfort. Brighter, sunnier, more health-inspiring
rooms never soothed, charmed or healed a nerve shattered patient!
"Under the supervision of the sanitary committee, the hospital at
present, is in charge of a young surgeon employed by the company. His
services are utilized in teaching and preparing a class of trained
nurses. He also teaches the members of the chemistry and physiology
clubs, in their new study rooms at the hospital. At a later period this
surgeon will be superseded by two of our own people. A young woman and a
young man, both with some previous knowledge of pharmacy, who have been
in charge of the drug department at the store; have recently developed a
strong desire to take a thorough course of medicine and surgery at some
leading school. Upon the recommendation of the general manager, approved
by a unanimous vote of the co-operators, the expense of this schooling
is to be taken from the insurance fund, with the understanding however,
that after graduating, they are to relieve the company of the expense of
a hired surgeon, by taking permanent charge of the hospital, or as our
people have christened it, the 'Temple of health.'
"Relative to the question of retiring members of the company; much
thought and discussion on the part of our officers and co-operators, has
been required, to properly and wisely fix the age at which such
retirement shall take place.
"Many important questions have been considered. Our present colony, as
you know, is composed of young people, as a rule not yet thirty years of
age. Individually they possess strong, disease-resisting, vital
organizations, which have been reinforced by harmonious, mental and
physical development. This immunity from disease to such a large extent,
has been still further strengthened and fortified, by the beneficial
effects of our organized sanitary, social and industrial methods. These
methods have lifted the weary burden of toil from our people, and
substituted therefor, a light exhilarating labor, simply healthful
exercise. Under such favorable conditions, our workers ought to reach
the age of fifty, with health and vigor still unimpaired. For the
reasons named, very few of our co-operators, outside the ranks of the
mother's club, are at present entitled on account of either illness or
accident, to draw their wages from the insurance fund. Fortunately, so
far, not one has become permanently disabled! All things considered, it
was not unexpected, when a final vote on the question was taken, that a
majority was found to be in favor of fixing the age of retirement at
fifty years.
"This decision will give the farm company, twenty years in which to
prepare for the event. In the light of our past experience, no one
doubts our ability to accumulate an adequate fund, with which to meet
the additional drain upon it. This drain will prove a heavy one, as the
retired pay of the co-operators, who have reached the age of fifty, has
been fixed at two-thirds of their present pay, that is, fifty dollars
per month or $600 per annum. Premising that the maximum number on the
retired list at any one time will not exceed fifty; the total annual
retired pay will then amount to $30,000.
"The following plan has been devised to meet this additional
expenditure. It has been demonstrated conclusively, that five years
hence, the income of the farm, will warrant the increase of the wages of
each member of the company, to $1,500 per year. At least $1,200 of this
amount, will be spent at the store or restaurant. We shall then have a
new basis for calculating the five per cent profit for the insurance
fund; that is, $600,000 annually, which will give $30,000 each year for
the fund. Allowing that savings at the present rate, $20,000 per annum,
for seven and one-half years, aggregating $150,000; will prove ample for
incidental needs, until the time for the retirement of the first
co-operator! We calculate that fifteen years of savings on the new
basis, will give us twenty years hence, a fund of $450,000 to commence
with.
"If practical experience should prove that larger savings are necessary;
an additional two and one-half per cent profit, may be set aside for
this fund, without seriously curtailing the sums devoted to educational
and missionary purposes. This will surely cover all possible
contingencies. More especially, as seven and one-half per cent of all
retired pay, will come back to the fund as profits on purchases--active
workers having taken the place of the retired members. Considering the
generous annuity provided by this insurance, together with the fact that
the wants of the pensioners will become fewer as age increases;
doubtless, at the end of each year, many of them will turn back into the
fund, considerable sums of unused pay.
"As another important factor, connected with the question of this kind
of insurance, it should be well understood, that after reaching the age
of retirement, our members do not cease to be valuable productive
workers, either for the financial gain of the colony, or for the general
welfare of the movement, which the colony represents. On the contrary,
in many cases, their services are liable to become more valuable than
ever before. Between the ages of fifty and sixty, they remain subject
to assignments to serve on committees, to act as traveling agents for
the company, to represent the company as lecturers and organizers, for
the spread of the movement; to act as aids to the teachers in the
schools and the numerous clubs. They are also eligible to election as
town, county, state or United States officials. In committee work,
connected with the store and the various factories, their riper
judgment, based on many years of experience, would prove especially
valuable: often by timely advice, they would be able to save for the
company in one transaction, an amount in money more than equal to their
entire wages for the year.
"In another way their services would prove equally advantageous. With
such an increase of leisure, there would come to these retired
co-operators, a desire, and the opportunity, to enter more actively into
the practical work of the scientific clubs. If inclined, they could take
up all kinds of scientific research; making themselves especially useful
in the practical, productive and profitable work of the educational,
microscopical, chemical and photographic clubs. Those who had a talent
for invention, could then devote as much time, energy and thought to it,
as they chose. To aid them, they would have the advantage of an acquired
skill in the use of tools, and of all kinds of complicated machinery,
which would be a part of the outfit belonging to the thoroughly equipped
machine shop at their disposal. In the laboratory, they could find the
books, maps, and drawings, necessary to bring them up to date in any
line of invention which they might choose to enter.
"Taking these important factors into consideration, we discover that
our co-operative inventor, would be armed to conquer his subject by a
magnificent equipment, such as an ordinary inventor could not hope to
command.
"So ably reinforced by the advantages enumerated, our corps of
inventors, of both sexes, would be inspired by a labor of love. Unbiased
by any selfish motives, they would be working for the farm and for
humanity. With no cause to distrust their fellows, they could openly
discuss their discoveries, without fear of having them stolen;
consequently, they could have the willing assistance of all the
inventive minds in the colony, in developing and perfecting their
original inventions. This would be an experience utterly unheard of, in
the annals of an industry based on the competitive system. It would be
the beginning of co-operative invention as an art. It would mark another
great step in harmonious, practical and profitable co-operative
thinking, that would lead to discoveries of vast importance to the
world; discoveries that could not be made in any other way. It is
difficult for even the most enthusiastic optimist to imagine, what a
revolution in the inventive world, will follow the introduction of such
superior co-operative methods; or what wonders will be wrought by them,
before the close of the first half of the twentieth century!
"Let us consider what they might do for our superannuated farmers.
Quickened by such an added potency of perfect, co-operative, mental,
conditions, our inventors would naturally aspire to still higher
achievements. Each year they would be able to produce many valuable
inventions, which could not be used by the farm, but which could be sold
by the company after being patented, for good round sums in cash! In
this way it becomes evident, that our old members might prove the most
prolific cash producers on the farm. It is even possible, and quite
probable, that the sale of one invention, might bring to the company, a
sum of money, more than equal to the combined pensions of the retired
co-operators for one year. From this particular source, would flow an
additional fund for educational work in pushing the movement before the
public.
"Viewed in this light, to be retired on two-thirds pay at the age of
fifty, is simply a matter of justice! When justice is done, the mission
of charity is finished!
"In considering the growing interest in the insurance question among
people of the outside world, we find great numbers of laboring people,
and of small farmers everywhere, who are beginning to understand that it
is a question of vital importance, an open gateway through which they
may gain access to the broad fields of abundance. Every day, both by
observation and experience, they are taught that without the aid of some
special insurance, nine out of ten who start in business fail. Also,
that nine farmers out of ten, who start with a meagre capital, after
twenty years of constant toil, find themselves the slaves of some money
lender who holds a mortgage on the farm. These mortgages are largely the
result of a hopeful struggle on the farmer's part, in a last vain effort
to compete with the expensive methods of syndicate and bonanza farms.
"No wonder the average worker is anxious to discover some method of
insurance, that will safe-guard him against the disasters which have
overwhelmed so many of his predecessors! No wonder these workers come to
believe it possible, that out of a given number of say one thousand
men, who start in life without capital, except such as they possess in
ordinary health and strength; at least fifty per cent are liable to die
in the poor-house, or in some way become helpless dependents on charity!
Against such an alarming proposition, the average optimist or plutocrat,
cries out, impossible! No, No! In this Republic, such things could never
happen! Besides, how preposterous! Don't you know, that the general
prosperity of the country was never greater than now! Why the wealth of
the nation is growing at a marvelous rate! Never before, were fortunes
made so easily! The way is open for every industrious man; no matter how
poor he may be at the start. If people come to want in the midst of such
golden opportunities, they have only themselves to blame.
"By way of an answer to these optimistic assertions, let us apply the
figures collected by Prof. A. G. Warner, published in his 'American
Charities.' In this book he has tabulated the results of fifteen
investigations, both in this country and abroad, into the actual causes
of poverty. These investigations embrace over one hundred thousand
individual cases, found in the cities of Baltimore, New York, Boston,
Cincinnati, London, England, and seventy-six cities in Germany. In the
causes of poverty stated, eleven per cent are due to intemperance, ten
and three-tenths per cent to other kinds of misconduct; while
seventy-four and four-tenths per cent are due to misfortune, such as
poorly-paid work, lack of work, sickness, etc. Here, we have actual
proof that seventy-five thousand in the ranks of this vast army of
poverty-stricken people, were reduced to such straits, by causes which
they could not control. How dreadful the significance of these terrible
figures! What a blot they become, on the fair page of progress achieved
by the nineteenth century! What a warning to the people of the
twentieth! What an indictment against existing, social, and industrial
conditions! What argument could be more convincing, or demand more
imperatively, the immediate adoption of co-operative methods, which
offer absolute insurance against the recurrence of such calamities?
"As relating to the insurance question, and by the way of a contrast
between competitive and co-operative methods, let us consider the
following statement.
"We learn from statistics, that for the family of a skilled workman of
the better class--a family of five persons--the average annual cost of
living is $420. This includes food, shelter, raiment, fuel, laundry,
light, water, medical attendance, medicine, education and recreation.
"Under the competitive system, to earn this sum required, on the part of
the adults and such of the children as were able to work, the continuous
toil of three hundred days, twelve hours long--counting the possible
workers of the family as three, and the labor day as twelve hours
long--we have in the aggregate, say eleven thousand weary hours of this
nerve depressing labor. A labor often performed in the midst of the most
repulsive and unsanitary conditions; to which the toilers were
constantly goaded by the cruel spur of necessity. This is a picture of
the living expenses and daily working life of a family of the superior
class, far above the average among the workers under the competitive
system.
"To illustrate what the co-operative system can do, let us transfer the
account of this family, to a co-operative agricultural colony like this.
On the basis of three hundred days of labor annually, we should have
daily for the two adults--the children being in school--six hours of
productive labor and two hours of educative labor, an aggregate of four
thousand, eight hundred hours, of work for the year. This work would be
separated by such generous periods of rest and recreation, and performed
amidst such pleasant surroundings, that the worker could truthfully
count them as so many hours spent in necessary healthful exercise.
"As a result of this labor, we could place the annual income of the
family at $1,800. All available, for providing the very best of food,
shelter, clothing, heat, light, laundry, hospital service, medical
attendance, medicine, education and amusement. Also superior social
surroundings, with increased facilities for being well born; with
educative advantages, embracing a higher order of intellectual
amusements, art-culture, musical training, and industrial skill.
"In addition, the family would enjoy a savings account of generous
proportions, represented by the constantly increasing value of the farm,
its stock, crops, buildings, store and goods, material, machinery,
industrial plants, orchards, vineyards and forests.
"Still better! They would have savings in the sinking fund, providing
land, and homes for their children and grand-children in a long line of
future generations.
"Best of all! This family would have savings in the insurance fund,
providing for an old age of ease and comfort, free from care, sweetened
and brightened by leisure, travel and the refinements of study, art and
music!
"In striking a balance between these two accounts, we discover a
difference in favor of the co-operative system, with its magical
insurance, which is wider, deeper and more startling than the difference
between the illustrations of Dante's Inferno, and the descriptions of
Milton's paradise!
"A careful study of this insurance question, has taught our people many
valuable lessons. They have learned to consider from a new standpoint,
the object and purpose of life, and the amount of work necessary to
support that life.
"They have learned that poverty is a needless crime against progress,
which can and must be abolished!
"They have learned, that in these days of general prosperity, marked by
a wealth of labor-saving machinery, never before dreamed possible,
co-operation has demonstrated, that an average of but six hours each
day, devoted to farm work, will abundantly supply the means which will
yield them, the highest advantages of birth, education, amusement, and
everything necessary to a healthful enjoyment of life.
"They have learned that the true purpose of work, is not to make and
hoard money; but to secure these advantages for themselves and their
children.
"They have learned that money is not a necessity; that it is only the
means to an end. They have learned that confidence in each other, among
members of a co-operative colony, working unselfishly together, largely
takes the place of money.
"They have learned that practical education equips them with a
knowledge, of how to deal justly with each other, in all the social
relations of life.
"They have learned that the pathway which leads to success, in winning
the largest measure of all these advantages, is reached by adopting
unselfish methods, which will insure the welfare of all. They have
learned that this condition may be attained by building up co-operative
systems that furnish remunerative self employment, and at the same time
enables them to enjoy free access to the natural sources of life.
"They have learned that this free access cannot be secured, without
first obtaining permanent control of the necessary tracts of land, not
less than ten acres per capita. They have learned that these tracts
should contain at least five thousand acres, in order to properly
support an industrial co-operative colony of one thousand people.
"They have learned that the social, ethical and intellectual advantages
offered to the individual, by this co-operative colony life, are even
greater than those relating to the question of finance.
"They have learned, that when selfish distrust of each other is once
banished from the minds of the workers by the force of repeated examples
of co-operative success; then, it will be practical and easy to organize
the farms and farm laborers of this Republic, with its army of the poor
and the unemployed of every class, into systems of co-operative farm
villages, or similar industrial associations.
"In this knowledge our people rejoice! They are filled with an unselfish
desire to spread the good news broadcast! Can you, my dear Fern! imagine
for them, a purpose in life more noble or more worthy?"
"No, my dear Fillmore! I cannot! So eloquently have you stated the
case, that the outlook for the future is glorious! How graphically you
have pictured the growing importance of this question of insurance! I am
amazed, and more deeply interested than ever! I never before dreamed it
possible, that the co-operative farm could offer so much defense against
the calamities of life, which grow out of the pinching pressure of
poverty!
"The scheme for providing for the members of the Mother's Club, and for
retiring co-operators at the age of fifty, meets my enthusiastic
approval! I am sure it will commend itself to the workers and thinkers
of the world! To me, it seems admirable, from every point of view!"