It issued forms
of a constitution and by-laws which, with a few modifications, could be
adopted by any locality. It also published articles on the dangers and
pitfalls in cooperative ventures, such as granting credit, poor
management, etc., as well as numerous articles on specific kinds of
cooperation. The Knights of Labor label was granted for the use of
cooperative goods and a persistent agitation was steadily conducted to
induce purchasers to give a preference to cooperative products.
As a scheme of industrial regeneration, cooperation never materialized.
The few successful shops sooner or later fell into the hands of an
"inner group," who "froze out" the others and set up capitalistic
partnerships. The great majority went on the rocks even before getting
started. The causes of failure were many: Hasty action, inexperience,
lax shop discipline, internal dissensions, high rates of interest upon
the mortgage of the plant, and finally discriminations instigated by
competitors. Railways were heavy offenders, by delaying side tracks and,
on some pretext or other, refusing to furnish cars or refusing to haul
them.
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