UNITED STATES OF AMERICA FEB 6 35 LETTER OF TRANSMITTAL UNITED STATES DEPARTMENT OF LABOR, Hon. FRANCES PERKINS, Secretary of Labor. MADAM SECRETARY: I have the honor to transmit herewith a report intended for the use of groups wishing to organize cooperative gasoline and oil associations on the Rochdale plan. This bulletin has been prepared at the request of the Consumers' Advisory Board of the National Recovery Administration. The contents of the present report are based upon the experience of several hundred associations, mainly in the Middle West. These associations handle petroleum products and often tires, accessories, etc. Though the largest proportion of their business consists of the sale of gasoline, they call themselves "oil associations." The Bureau takes this opportunity to acknowledge its indebtedness to Mr. Howard A. Cowden, president of the Union Oil Co. (Cooperative), North Kansas City, Mo., for the material furnished. Respectfully submitted. ISADOR LUBIN, Commissioner. III BULLETIN OF THE U.S. BUREAU OF LABOR STATISTICS No. 606 WASHINGTON OCTOBER, 1934 ORGANIZATION AND MANAGEMENT OF COOPERATIVE GASOLINE AND OIL ASSOCIATIONS Introduction The growth of cooperative buying associations in the United States has been a gradual one. Consumers have entered many fields of cooperative purchase and supply, an important one being the handling of petroleum products and related lines. The cooperative oil movement, started by farmers, followed the development and successful operation of their producing and marketing cooperative associations. As the number of automobiles, trucks, and tractors used by farmers increased, the volume of petroleum products consumed grew rapidly. In some of the great agricultural States the cost of petroleum products is the largest cash item in the production cost of agricultural commodities. In all States it is an important factor. Through cooperative buying the farmers found a way to reduce this cost. Their average saving on petroleum products purchased cooperatively, during the past 5 years, has been about 15 percent. Since the beginning of this movement, about 10 years ago, interest in cooperative buying of petroleum products and related lines has spread rapidly. Cooperative gasoline filling stations are now being started by wage earners in towns and cities. These associations, like other consumers' cooperative societies, operate in accordance with the accepted Rochdale principles. Membership in these associations is voluntary and open to all. Shares are of low denomination and may usually be paid for in installments. At meetings each member has one vote and no more, regardless of the amount of stock held. In order to insure comparative equality in the financial status of members the number of shares that may be held by any one member is limited. Capital receives interest at no more than a legal rate, it being the cooperator's idea that the owner of capital should receive a fair price for the use of this money, but no more than a fair price. It has been said that the motive power of the cooperative movement is the man and not his money, and this principle is extended to every part of the movement, federations as well |