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 cooperative enterprise two things must be considered:
first, the kind of business to go into and, second, the method of
organization. Any group desiring to engage in a cooperative venture
should first of all, through a committee and by consultation with
experts, determine what type of enterprise will serve them most
effectively. Where competition is unusually keen and profit margins are