The Co-opolitan: A Story of the Co-operative Commonwealth of Idaho

The second Governor of Idaho and the second President of the Co-opolitan Association, succeeding Senator Thompson to both positions, was Hon. Henry B. Henderson. The political machinery of the state was in the control of the Association and our policy was to make the executive officers of the Association the executive officers of the state also. Some of those readers who live beyond the boundaries of Idaho into whose hands this history may come do not comprehend why we continued to run two organizations in the name of the people, instead of one. They are, perhaps, at a loss to understand why the Co-opolitan Association did not, when it had acquired nearly all the land in Idaho and embraced nearly all the population of the state, transfer its dominion to the state government and operate its co-operative system as a state institution. The reason is simple enough. The state was necessarily limited in its powers by the Federal constitution. There were several very important functions which were by that instrument denied to state governments, but not to private corporations, and we desired to exercise them.

I have already adverted to the fact that the Federal constitution prohibits the state from issuing “bills of credit.” This does not prevent corporations, associations or private persons from doing so. When we dealt with the commercial world “bills of credit” were often necessary. Moreover, our industrial orders might be construed to be bills of credit and this plan of labor exchange was, in reality, one of the most important features of our co-operative system. If the state had inaugurated such a plan the Federal prohibition would have crushed it at once.

Still another important power would have been lost had the state government owned and operated our system. We could not have extended our business into any other state in the Union. It was our purpose to build railroads. Most of the states permitted a corporation organized in another state for that purpose to build railroads within their limits and take land for their right of way by right of eminent domain. No state had a law upon its statute books which gave similar powers to another state. It had never been contemplated that a state would do business or own railroads within its own limits, much less within the limits of another state.

The Co-opolitan Association was organized under the laws of Idaho. There the Association did not so much conform to the laws as the laws conformed to the needs of the Association. This dual system proved to be extremely useful. We made the state perform police duties for us and regulate the relation of our members to one another. We had a system of courts regulated by state law, but these had little to do. In 1910 we repealed the laws giving remedies for the collection of any debt or the enforcement of any contract entered into after January 1st, 1911, except against the Co-opolitan Association. We had a criminal code and punished crimes, but the people were all provided for and educated, so that three great causes of crime—poverty, excessive wealth and ignorance—being minimized, the criminal courts had little to do. That other cause of crimes—drunkenness—is uncommon. All alcoholic or intoxicating drinks were not only sold by the Association, but were of the purest quality. It was and is a crime to import any liquors into the state for sale, but the Association is its own manufacturer.