FEATURE ARTICLE - LEGACY CO-OP

LEGACY CO-OP THE FIRST FIFTY Our Early Beginnings

Optimism is a strategy for making a better future. Because, unless you believe that the future can be better, you are unlikely to step up and take responsibility for making it so. “ “

Kamsack Co-op amalgamation (1972).

Credit: Legacy Co-op Yorkton

These are the famous words of Noam Chomsky, an American philosopher and historian. Fitting words, as one delves into the changes that Legacy Co-op has seen in its 80 years of existence. On March 6, 1940, 6 individuals had the courage to come together to procure goods at reasonable prices. This foresight came on the heels of one of the worst decades in our history. There was a spectacle of men, women and children, sitting and doing without things that they desperately needed; not for a lack of food, resources, power, knowledge, machines or factories, but because there did not seem to be any way to bring these resources of men and materials. Resources, both human and physical, provided and human needs satisfied. This was the depression. A time when resources of all kinds lay idle and unused in the face of desperate, unsatisfied human needs. One phase of this depression was the breakdown of farmers’ markets and the resultant poor prices for farm products – wheat as low as 19¢ a bushel, and cattle as low as 1¢ and 2¢ a pound. So, people all over Saskatchewan and general area set out to help themselves. They set out to organize local livestock marketing associations, and soon found that farmers were generally interested. On the other side of farmers’ economic life, however, getting value for their purchasing power when they went to buy was an important factor. In other words, they realized that the cost of their farm supplies was as important to them as the prices that they received for their farm products. These conditions spurred farm people to organize a large number of local co-op associations, with charters to give them powers to act in a wide range of activities from livestock marketing to consumer and farm supply services. Local co-operative organizations were formed in Yorkton, Saltcoats, Springside, Theodore, Bangor, Dubuc, Melville, Churchbridge, Stornoway and many other centres. In nearly all cases, the original organization work was done by a small handful of men, with visions of new ways to organize their economic life. Almost always, these groups of men had pitifully small capitalization. In the case of the Yorkton Co-op: H.N. McNaughton, L.M. Switzer, F.C. Draper, Donald McKen, George Larson and Carl Anderson organized on March 6, 1940 to form Yorkton Co-operative Association Limited. At the end of the first year there were 70 members and capital of $300. A small warehouse was purchased for $200 for the handling of petroleum products, and a manager was hired. Since the retail had no truck, all fuel delivery was done in drums. In its second year of operation, Yorkton Co-op purchased an old farm granary for $85 and reconditioned it into an office building, which it ran out of for a few years. Through the years that followed, expansion into lumber, food, hardware and larger locations were able to happen due to the continued support of customers and shareholders alike. They were not able to escape the recession that hit Canada during the 1980s, however. By 1981, inflation was at its highest point, and so were interest rates. There was much uncertainty in the business community. In 1982, the recession continued, and all reports indicated it would last well into 1983. Members equity had dropped to 25% and the Co-op would lose $433,000.

Yorkton/theodore amalgamation, service station (1960).

Credit: Legacy Co-op Yorkton

Yorkton's West Broadway Gas Bar (1962).

Credit: Legacy Co-op Yorkton

The need for change was evident, so a stringent review of operations took place. A Retrenchment plan was adopted by the Board of Directors, which included closures of the Wroxton Branch and Kamsack lumber, a rollback of management salaries, layoffs, reductions in hours of work and the cancellation of institutional advertising. These decisions, although unpopular, were considered to be absolutely essential if Yorkton Co-op was to survive. The plan proved itself, helping the Co-op to survive the next several years.

Optimism returned in 1986, with the announcement that 1985’s retained savings had been allocated on all purchases at a rate of 2.76%. $279,000 went to member equity and reserves were improved by $120,000. Nevertheless, as 1986 drew to a close, the people of Saskatchewan closed the books on one of the most difficult periods in history.

Yorkton Co-op's first food and hardware store on Betts Avenue (1949).

Credit: Legacy Co-op Yorkton

For many, 1987 had been a year of little growth and few opportunities, but for Yorkton Co-op, it was a positive year. Plans were underway for a new food store to be built on Argyle Street. Total costs for the project including land, building and equipment was $3.4 million dollars. The new store opened in the spring of 1989, and has remained there ever since.

This was the first 50 years for Yorkton Co-op. They survived the post depression and the 1980’s recession when many retail stores, including numerous co-ops, closed their doors.