who joined the corporation without looking carefully into its
organization.

* * * * *

The Cooperative Society of America.

In 1920 The Cooperative Society of America was doing a flourishing
business in Chicago and vicinity. One of the leaders of the enterprise
went to Europe in 1921 and convinced most of the leading cooperators of
those countries that he was the greatest power in the cooperative
movement in the United States. By the summer of 1921, the agents of the
principal promoter of this scheme, Harrison Parker, were operating in
New York City, and scores of salesmen were covering the various boroughs
selling stock. Within two weeks all the agencies interested in
protecting cooperation were organized to fight this fraud. The matter
was placed in the hands of the Attorney General and a special deputy
appointed to prosecute. The leading newspapers ran an expose of its
operations. At this juncture, the Chicago headquarters suddenly went
into the hands of a receiver and the New York office closed its doors.

Late in the year federal action was instituted against Harrison Parker
in Chicago. The entire business of the so-called cooperative was
disclosed to the courts. It was found that 81,000 people had invested
fifteen millions in this gigantic fraud. Here in New York there were
many hundreds, if not several thousands, of men and women who lost large
sums of money in the ensuing bankruptcy. These people were taken in by
the dramatic appeal to their selfish interests. The Chicago organization
showed them photographs of the "massive buildings" in Chicago in which
it was doing business, spoke glibly of its banking and insurance
departments, and then promised them a share in the spoils if they would
pay $75 for their certificates which were worth only $25 or $50 at their
face value.

That so many people could be duped by these "get-rich-quick" methods is
an indication of the amazing lack of cooperative understanding which
prevails in the United States. It is a part of the purpose of this
Bulletin to correct the misunderstanding which prevails because of the
fraudulent use of the word cooperation. In the case of a suspected false
cooperative, test it by the Rochdale principles. If it fails to measure
up to them take the matter up directly with the State authorities or the
Cooperative League of America.

HOW TO START A COOPERATIVE ENTERPRISE IN NEW YORK STATE

In starting a coope