History of cooperatives in the United States

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The history of cooperatives in the United States extends to pre-independence times. [1] With the exception of credit unions and mutual banking institutions, most cooperatives have held a light footprint on the economic history of the United States, compared to the economies of Europe.

Contents

The development of mutual organizations and cooperatives in the United States has a history spanning from the 18th century to the present day, reflecting the evolution of collective economic and social efforts. The 18th century marked the beginning with the establishment of the earliest mutual organization, in the British North American colonies in 1735, although it was short-lived due to a devastating fire. The Philadelphia Contributionship by Benjamin Franklin in 1752 is the oldest continuing mutual insurance company in the continental United States.

The 19th century saw further development with the formation of the Boston Mechanics' and Laborers' Mutual Benefit Association in 1845, inspired by the British Rochdale Pioneers. This period set the stage for the expansion of cooperative movements in the United States.

The early 20th century saw a surge in consumer co-ops, especially during the Great Depression, when the establishment of self-help cooperatives was advocated by figures like Upton Sinclair and supported by Franklin Roosevelt's New Deal. This era underscored the resilience and adaptability of cooperatives, with many surviving to their fiftieth anniversaries and beyond.

In the 21st century, cooperatives continue to play a crucial role in various sectors, including health care reform debates and the establishment of worker cooperatives, in partnership with international cooperatives like the Mondragon Corporation. The National Cooperative Business Association lists over 29,000 cooperative businesses.

18th century

Colonial era

The earliest mutual organization established in the British North American colonies was created in 1735 in Charleston, South Carolina, but was liquidated following a 1740 fire which gutted much of the city's buildings and had left the company unable to recoup the losses. The Philadelphia Contributionship mutual insurance company, founded by Benjamin Franklin in 1752, is the oldest continuing mutual insurance company in the continental United States.

19th century

The Boston Mechanics' and Laborers' Mutual Benefit Association was founded in 1845 as a mutual organization styled after the British Rochdale Pioneers. [2]

20th century

On May 20, 2019, the National Register of Historic Places in the United States, listed two four story sixteen apartment buildings, Alku 1 and Alku Toinen, (Finnish for Beginning 1 and 2), located at 816 and 826 43rd Street, Kings County Brooklyn New York, as the first two coop buildings in the US, built by Finnish immigrants, on the National Register of Historic Places. Previously, on March 21, 2019, the New York State Office of Parks, Recreation and Historic Preservation designated both buildings as Historic Sites in New York State. United States Department of the Interior, National Park Service / National Register of Historic Places Registration Form NPS Form 10-900 OMB No. 1024-0018 (Expires 5/31/2012) Alku & Alku Toinen DRAFT Kings County, NY, Name of Property County and State, Sections 9-end page 9

By 1920, there were 2,600 consumer co-ops in the United States – all but eleven were general stores – and 80% were in towns with populations of less than 2,500. Combined sales volume for these stores was about US$260 million.[ citation needed ]

Great Depression

Upton Sinclair's EPIC movement became one of the leading proponents for the establishment of self-help cooperatives in California during the Great Depression, as was Japanese pacifist Toyohiko Kagawa, who advocated for "brotherhood economics" as an alternative to communism and fascism on both sides of the Pacific. This advocacy for cooperatives, combined with then-president Franklin Roosevelt's New Deal, culminated in the establishment of cooperatives in Berkeley, California, Palo Alto, Eau Claire, Wisconsin, Hanover, New Hampshire, Hyde Park, Chicago (closed January 2008), [3] and Greenbelt, Maryland. While all these cooperatives lasted to at least their fiftieth anniversaries, the Consumers' Cooperative of Berkeley ultimately closed down, the Eau Claire and Palo Alto cooperatives scaled back their activities, and the Hanover, and Greenbelt [4] cooperatives have survived to this day.

Credit unions, in particular, were established throughout the United States and have remained one of the most visible and productive legacies of the New Deal period.

21st century

In the healthcare reform debate, health insurance cooperatives were, at one point, proposed as an alternative to the public option, and indeed in some states were instituted as the ACA became law.

Starting in 2001, several states passed laws for the creation of Limited cooperative associations (LCA), a type of multi-stakeholder cooperative which mixes aspects of cooperatives with limited liability companies to allow for outside investment.

In 2009, the United Steelworkers signed an agreement with the Basque Country-based Mondragon Corporation in order to further the establishment and expansion of unionized worker cooperatives in North America.

The National Cooperative Business Association identifies over 29,000 cooperative businesses employing more than 2 million people and accounting for over $650 billion in annual revenue. [5]

Legislation by state

StateCooperativesWorker cooperativesLimited cooperative associations (LCA)Limited worker cooperative associations (LWCA)
AlabamaYes [6]
AlaskaYes [7]
ArizonaYes [8]
ArkansasYes [9]
CaliforniaYes [10] Yes [11]
ColoradoYes [12] Yes [13]
ConnecticutYes [14] Yes [15]
DelawareYes [16]
District of ColumbiaYes [17] Yes [18]
Florida
GeorgiaYes [19]
HawaiiYes [20]
Idaho
IllinoisYes [21] Yes [22] Yes [22]
IndianaYes [23]
IowaYes [24] Yes [25]
KansasYes [26]
KentuckyYes [27] Yes [28] Yes [29]
Louisiana
MaineYes [30] Yes [31]
MarylandYes [32]
MassachusettsYes [33] Yes [34]
MichiganYes [35] Yes [36]
MinnesotaYes [37] Yes [38]
Mississippi
MissouriYes [39]
MontanaYes [40]
NebraskaYes [41] Yes [42]
NevadaYes [43] Yes [44]
New HampshireYes [45]
New JerseyYes [46]
New MexicoYes [47]
New YorkYes [48] Yes [49]
North CarolinaYes [50]
North DakotaYes [51]
OhioYes [52]
OklahomaYes [53] Yes [54]
OregonYes [55] Yes [56]
PennsylvaniaYes [57] Yes [58]
Puerto RicoYes [59] Yes [60]
Rhode IslandYes [61] Yes [62]
South CarolinaYes [63]
South DakotaYes [64]
TennesseeYes [65]
TexasYes [66]
UtahYes [67] Yes [68]
VermontYes [69] Yes [70] Yes [71]
VirginiaYes [72] Yes [73]
U.S. Virgin IslandsYes [74]
WashingtonYes [75] Yes [76] Yes [77]
West VirginiaYes [78]
WisconsinYes [79] Yes [80]
WyomingYes [81]

References

  1. "The history of cooperatives...". Archived from the original on 2007-07-24. Retrieved 2009-12-20.
  2. Foner, Philip Sheldon (1947). History of the labor movement in the United States, Volume 1. International Publishers Co. ISBN   0-7178-0376-7.
  3. Ron Grossman (January 20, 2008). "Hyde Park Co-op closes its doors". Chicago Tribune. Retrieved December 8, 2022.
  4. "Greenbelt Consumer Co-Op: About Us". Archived from the original on 2010-08-22. Retrieved 2010-07-23.
  5. "Co-op Research / Economic Impact". National Cooperative Business Association. Archived from the original on 2011-11-25.
  6. Ala. Code §§ 10a-11-1.01 to 10a-11-1.01, HB 156/Act 97-949 (passed 23 September 1997)
  7. General Alaska Cooperative Corporation Act, Alaska Stat. §§ 10.15.005 to 10.15.600
  8. Cooperative Marketing Associations, Ariz. Rev. Stat.§§10-2001 to 10-2026 (2019)
  9. Cooperative Associations, Ark. Stat. §§ 4-30-101 to 4-30-118
  10. Cooperative Corporations, Cal. Corp. Code §§ 12200 to 12704
  11. Cal. Corp. Code §§12200 to 12656.5, AB 816 (passed 12 August 2015)
  12. Cooperatives-General, Colo. Rev. Stat. §§ 7-55-101 to 7-55-121
  13. SB 191 (passed May 23, 2011; effective April 2, 2012)
  14. Cooperative Associations, Conn. Gen. Stat. §§ 33-183 to 33-193
  15. Conn. Gen. Stat. §§ 33-418f to 33-418o
  16. 6 DE Code § 1401 to 1414 (passed 1996)
  17. General Cooperative Association Act, DC Code §§ 29-901 to 29-939
  18. Bill No. 18-500 (passed February 27, 2011; effective July 2, 2011)
  19. Cooperative Marketing Act, Ga. Code Ann. §§ 2-10-80 to 2-10-111
  20. Consumer Cooperative Associations, Haw. Rev. Stat. Ann. §§ 421C-1 to 421c-42
  21. Co-operative Act, 805 ILCS §§ 310/1 to 310/27
  22. 1 2 805 ILCS 317/21 (passed 9 August 2019, effective 1 January 2020)
  23. Use of Cooperative in Business Entity Name or Marketing Materials, Ind. Code §§ 23- 15-12-1 to 23-15-12-8
  24. Cooperative Associations, Iowa Code §§ 497.1 to 497.35; Nonprofit Cooperative Associations, Iowa Code. §§ 498.2 to 498.37; Cooperative Associations, Iowa Code §§ 499.1 to 499.80; Collective Marketing, Iowa Code §§ 500.1 to 500.3; Closed Cooperatives, Iowa Code §§ 501.101 to 501.831
  25. HF 859 (passed May 20, 2005; effective January 1, 2006)
  26. Cooperative Societies, Kan. Stat. Ann. §§ 17-1501 to 17-1520
  27. Cooperative Corporations Generally, Ky. Rev. Stat. §§ 272.010 to 272.1001 and §§ 272.990 to 272.991
  28. Ky. Rev. Stat. § 272.010
  29. HB 441 (passed April 23, 2012; effective April 23, 2012)
  30. Consumer Cooperatives, 13 Me. Rev. Stat. Ann. §§ 1501 to 1731
  31. 13 Me. Rev. Stat. Ann. §§ 1971 to 1984 (passed 1983)
  32. Maryland Consumer Cooperative Act, Md. Code Ann., [Corps. & Ass’ns] §§ 5-5A-01 to 5-5A-30
  33. Co-operative Corporations, Mass. Gen. Laws ch. 157 §§ 1 to 18
  34. Mass. Gen. Laws ch. 157A (passed 1982)
  35. Michigan General Corporation Statute, Mich. Comp. Laws. Ann. §§ 450.98 to 450.109; Consumer Cooperative Act, Mich. Comp. Laws. Ann. §§ 450.3100 to 450.3192
  36. Mich. Comp. Laws. Ann. §§ 450.731 to 450.738 (passed 1985)
  37. Cooperatives, Minn. Stat. Ann. §§ 308A.001 to 308A.995
  38. HF 0984 (passed May 25, 2003; effective August 1, 2003)
  39. Missouri Cooperative Associations Act, Mo. Ann. Stat. §§ 351.1000 to 351.1228; Cooperative Companies, Mo. Ann. Stat. §§ 357.010 to 357.190
  40. Cooperative Associations, Mont. Code Ann. §§ 35-15-101 to 35-15-507
  41. Cooperative Companies, Neb. Rev. Stat. §§ 21-1301 to 21-1306
  42. LB 368 (passed May 16, 2007; effective January 1, 2008)
  43. Nonprofit Cooperative Corporations, Nev. Rev. Stat. §§ 81.010 to 81.160
  44. NV Rev Stat § 81.901 to 81.959; Nev. Rev. Stat. AB 432, §§ 2 to 31 (passed 28 May 2019)
  45. Consumers’ Cooperative Associations, N.H. Rev. Stat. §§ 301-A:1 to 301-A:39
  46. N.J. Stat. Ann. §§ 34-17-1 to 34-17-18
  47. Cooperative Association Act, N.M. Stat. Ann. §§ 53-4-1.1 to 53-4-45
  48. Cooperative Corporations Law, N.Y. Coop. Corp. §§ 1 to 134
  49. N.Y. Coop. Corp. §§ 80 to 94
  50. Cooperative Associations, N.C. Gen. Stat. Ann. §§ 54-111 to 54-128
  51. Cooperative Associations, N.D. Cent. Code §§ 10-15-01 to 10-15-62; Mutual Aid Cooperatives, N.D. Cent. Code §§ 10-12-01 to 10-12-04
  52. Ohio Cooperative Law, Ohio Stat. §§ 1729.01 to 1729.99
  53. Cooperative Corporations, Okla. Stat. tit. 18 §§ 421 to 436
  54. HB 2148 (passed March 20, 2009; effective March 20, 2009)
  55. Oregon Cooperative Corporation Act, Or. Rev. Stat. §§ 62.005 to 62.992
  56. Or. Rev. Stat. §§ 62.765 to 62.792 (passed 1987)
  57. Cooperative Corporation Law of 1988, Pa. Cons. Stat. Ann. §§ 7101 to 7125
  58. Pa. Cons. Stat. Ann. §§ 7701 to 7726 (passed 1988)
  59. General Cooperative Associations Act, P.R. Laws Ann. tit. 5, §§ 4381 to 4667
  60. Associated Labor Cooperatives, P.R. Laws Ann. tit. 5, §§ 4570 to 4577
  61. Consumer Cooperative Association Law, R.I. Gen. Laws §§ 7-7-1 to 7-7-22
  62. RI Gen L § 7-6.2-1; HB 6155 (passed 4 October 2017)
  63. Cooperative Associations Generally, S.C. Code Ann. §§ 33-45-10 to 33-45-120
  64. Cooperatives, S.D. Codified Laws §§ 47-15-1 to 47-20-4
  65. SB 1161/HB 1675 (passed March 20, 2004; effective January 1, 2005)
  66. Cooperative Associations, Tex. Bus. Orgs. Code Ann. §§ 251.001 to 251.452
  67. Uniform Limited Cooperative Association Act, Utah Code Ann. §§ 16-16-101 to 16-16-1703
  68. SB 69 (passed March 18, 2008; effective March 18, 2008)
  69. Cooperatives, Vt. Stat. Ann. tit. 11 §§ 981 to 1065
  70. Worker Cooperative Corporations Act, Vt. Stat. Ann. tit. 11 §§ 1081 to 1092 (passed 1985)
  71. HB 21 (passed April 20, 2011; effective April 20, 2011)
  72. Cooperative Associations Generally, Va. Code Ann. §§ 13.1-301 to 13.1-311.1
  73. VA Code § 13.1-346 to 13.1-355; HB 55 (passed 6 April 2020; effective 1 July 2020)
  74. Cooperative Corporations, V.I. Code Ann. tit. 13 §§ 551 to 589
  75. Cooperative Associations, Wash. Rev. Code §§ 23.86.010 to 23.86.900
  76. Employee Cooperative Corporations, Wash. Rev. Code §§ 23.78.010 to 23.78.902 (passed 1987)
  77. SB 5002 (passed April 17, 2019; effective April 28, 2019)
  78. Cooperative Associations, W. Va. Code §§ 19-4-1 to 19-4-29
  79. Wisconsin Cooperative Association Act, Wis. Stat. Ann. §§ 185.01 to 185
  80. AB 1186 (passed May 23, 2006; effective June 5, 2006)
  81. HB 0021 (passed March 1, 2001; effective July 1, 2001)