June 5,1945
Kyuquot Co-op Has History of Struggle
Great Advances Made By Trollers
• With the Kyuquot Trollers' Cooperative Association holding its semi-annual meeting on June 15, we are pleased to present this interesting history prepared by Breen Melvin following several days recently spent on the West Coast aboard the Cooperator 4.
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By BREEN MELVIN, UBC Extension Department ANY of the most SUC-*unable to handle the large produc-
icessful cooperative enterprises have been started out of desperation. So with the Kyuquot Trollers an impossible price structure gave the impetus necessary to start the new venture.
At Kyuquot in the spring of 1929, the salmon trolling was well under way when the two fish buyers in the cove suddenly announced a price cut. This was not an unexpected move since regularly for years prices were cut two and three times during the season. Each year valuable time and vital earnings were lost in tie-ups and price negotiations. This particular spring the cuts were felt to be thoroughly unjustified and the tie-up promised to be a lengthy one.
The West Coast Fishermen's Association, the organization representing the men concerned, declared a strike. Numerous meetings followed at which the fishermen concerned themselves more with finding a way to free themselves from the private buyers than with new price offers and agreements.
Co-op Marketing
Cooperative marketing was suggested and eagerly discussed as an alternative plan. Although very few of the fishermen knew and understood the principles of cooperation, it was decided to make preparations to market by that method. Desperation afforded little time to explore widely in the new field.
The first thing to consider in handling their own fish was a receiving float While still negotiating prices and waiting for the buyers to come to terms, these determined fishermen went ahead with their plans. They got logs and lumber and started the construction of the Kyuquot float Shares in the West Coast Fishermen's Association were credited to the men according to the labor performed on the float. Diligent effort soon had the structure taking shape, and late in May the logs were in shape, decked over and the sheds started.
So far no money had been spent since the new cooperators had none to spare. Every last log and stick of lumber was beach-combed and towed in from miles away. Mooring chains and anchors salvaged from wrecked ships were brought in and dropped in place.
Although considerable lumber was still needed to finish the buildings it had to wait since it must come from Victoria or Vancouver. What is more, cash was a commodity in very short supply.
Two Month Strike
By this time the strike had lasted two months, and the fishermen were coming to the end of their line. The buyers still refused to better their offers. Finally negotiations were stopped and the association invited an outside party to take all the fish over the new float at a set price for the balance of the season.* The new buyer also agreed to supply all lumber needed to finish the float.
tion. Valuable time was spent in waiting for packers to take the fish away. Yet the season yielded heavily for every one of the fishermen sailed for home that fall with the immense satisfaction of knowing that a start had been made on the cooperative marketing of their catch.
Before the close of the season a meeting held at Kyuquot decided to go ahead with marketing plans. W. Cearly and W. Silda were appointed and authorized to charter packers, and hire men for the operation. During the winter an agreement was made with Nelson Brothers' Fisheries to carry the fish to market at a set rate per pound. Arrangement was made for a scow to be used at the early spring operations at Nootka. John Clarke of Port Alberni was engaged as bookkeeper and placed in charge of the fish at the market. In Seattle agreement was reached with McCallum-Legaz Fish Company to handle all the large salmon at a contract price and small salmon and other fish at a commission of one cent per pound.
Rented Scow
In March of 1931, at Nootka, the first cooperative marketing operation was started on a rented scow. Seventy-five fishermen owning and operating their own boats and gear delivered their daily catches to the station. For each delivery they were issued a receipt showing the grade and weight of fish. The packers, after loading fish for five to eight days, were paid upon delivery at the market. The fishermen had their fish tickets redeemed after the return of each delivery trip at the market prices less overhead deductions.
The wholesalers and the fishing industry in general ridiculed this cooperative association whose capital was nil, and credit worse. Three months was the length of life generally granted such a fantastic venture.
Despite this foreboding reception, and because of the unfair prices and unsatisfactory merchandise carried by the private local traders, a small loan was obtained from Nelson Brothers' Fisheries and a store started on the scow. Only the essential fishing supplies were stocked.
Kyuquot Co-op
Up to this point business had been carried on in the name of the West Coast Fishermen's Association. It was soon recognized that this association had no legal right to engage in fish buying, marketing and storekeeping. Therefore, a meeting was called at Nootka on March 30, 1931, at which it was decided to form a cooperative association to be called the Kyuquot Trollers' Cooperative Association, with head office at Kyuquot, B.C. Share value was set at $15 each.
The memorandum of incorporation was signed at Nootka the same day by W. Cearly, John Grunlund, W. Kelsey, L. A. Bittancourt, H. Hanson, P. Jensen, F. Hansen, H. Jo-hansen, C. Myers, J. Nelson, E. Proser. Certificate of incorporation was granted on April 2, 1931.
The incorporators named above held office with W. Cearly as chairman until the first general meeting held at Kyuquot on June 6, 1931. There the following directors were elected: John Grunlund, president; W. Cearly, H. Hansen, E. Larum, H. North, J. Maki, E. Webster, E. Proser.
well established businesses were being disrupted right and left. Despite the depressing conditions the co-op carried on to the season's close.
Soon the news of the determined venture into fish marketing excited the interest of kindred groups. The fishermen at Winter Harbor, Quat-sino Sound, heard of the new association, and applied for membership. They were accepted and given shares in the co-op in return for a float at Winter Harbor which was converted into the station there.
The final gathering during the eventual year 1931 was the first annual general meeting, held at Nanaimo, B.C., on December 1. The board of directors' report presented the following figures. Proceeds from fish sales $143,000.00
Surplus on fish sales_______ 3,919.49
Store sales.........________________ 12,475.00
Net surplus on store sales 926.20 Paid-up membership, 175. Paid-up share capital 2,475.00 Dividend on fish sales, 4% Dividend on store purchases, 1%
Same System In '3 2
The 1932 operations were started with the same system of marketing and payment to fishermen. A store and office was opened on
Mr. D. G. Mac-donald, former managing secretary of the Kyuquot Trailers Co-op. He is now secretary - treasurer of the Fishermen's Cooperative Federation.
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Much time had been lost in the tie-up and construction of the float 2)ro/> \n Prices so that in a financial way the season ended most unsatisfactorily. The party who handled the fish proved to be poorly equipped and
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The first British Columbia troll ers' co-op was now started; the fish production was satisfactory and the fishermen enthusiastic. All was progressing happily indesd, except for one thing—the fish market was rapidly going to pieces with prices sagging daily. It is true, indeed, that during the depression
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the float at Kyuquot with A. Thompson as secretary. At the semi-annual general meeting held at Kyuquot, July 5, the president, John Grunlund, reported that members of the association were receiving better prices than any other body of fishermen in B.C. And this in spite of the fact that prices judged to be rock-bottom; when the co-op was started had dropped another 35 percent. It was apparent that a business setup that could assure such prices during deepest depression and still keep financially sound was worthwhile.
To carry on the good work, the meeting elected to its board E. Larum, president; H. North, J. Maki, H. Humphrey, W. Kelsey, W. Kerr and E. Proser.
In order to accommodate the fishermen members and thus to ensure a good attendance, the second annual meeting of the association was held at Kyuquot on February 7, 1933 The directors' report contained the following figures:
Proceeds from fish sales $107,082.00
Store sales ____________ 13,580.00
Net surplus after
reserves _____________________ 1,772.39
Paid-up membership, 186. Paid-up share capital ._ 5,200.00 Dividend on fish sales, 2%. Dividend on store purchases, 1% The noticeable decrease in proceeds from fish sales resulted from a large decrease in the size of the catch and from depressed prices. The beginning figure of twelve cents per pound sagged to five cents in May.
Share Value Raised
By this time the Kyuquot Trollers' Co-op was operating three fish stations and one store. Financing these operations was a continuous problem. In order to strengthen their position the board recommended, and the membership agreed, that the share value should be raised from $15 to $25 a share. Dividends also were to be applied to increase the value of the members' share holdings rather than to be paid in cash. With an eye to the future the gathering accepted a recommendation that two lots for office and store buildings be purchased in Kyuquot at a cost of $700.
Further evidence of the popularity of the co-op idea was shown in a petition from the Ucluelet Trollers that a camp be opened in their area. This proposal was agreed to on condition that the new group sign up sufficient shares to finance a float. By March 3. 1933, the station was opened with two-thirds of the required share capital in hand.
In June, 1933, President E. Larum was appointed to take charge of the marketing activities, relieving J. Clarke.
Continued success was reported at the third annual meeting held in Port Alberni, December 5, 1933. Fish production of 1,270,000 pounds
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yielded $121,000.00. From the net surplus of $1,354.79 left after reserves a two percent dividend was allocated on fish yales. Date of payment of this dividend was left to the discretion of the board. Plans were made to open a station at Bamfield in response to a request from that area.
Three Years Old
The co-op had been in operation now for three years with not a single locally inspired tie-up during fishing season. However, during the period May 7 to June 16, the Kyuquot Trollers tied-up at the request of the Alaska and United States trollers who were striking. Following this incident fishing was resumed at improved prices.
In 1934 the co-op started the season with stations at Kyuquot, Nootka, Winter Harbor, Ucluelet and Bamfield. A new office and store building at Kyuquot was completed in May. Through real cooperation on the part of the fishermen a $2,000 building had been erected at an actual money cost of $975.
At preliminary planning meetings a number of members had argued—with the support of local merchants — that launching into store business so extensively would ruin the entire co-op.
The opponents of the idea had not yet realized that a rise in prices for fish could be rendered useless by rising costs for consumer goods.
However, the fine appearance of the new building—the most prominent and up-to-date one in Kyuquot — heartened the members greatly. The only fear was that the small stock of goods in the old store would be lost on the new shelves. This difficulty was overcome by spreading the articles wisely over the display space.
Packer Needed
The general meeting called in June faced a major problem that had to be met before benefits of their labors could be returned to the member fishermen. The greatest single annual expense to the association was the packing charges, amounting to more than $20,000.
When told that a packer adequate to their needs would cost $10,000, the faint-hearted exclaimed that such an amount was beyond "us poor fishermen." They did not realize their own strength.
Nevertheless, the board proposed "that the directors be authorized to borrow from the members for this purpose the sum of $5,000, the minimum amount to be $25, at an interest of four percent per annum." The meeting accepted the proposal and for several years dividends either stood to the credit of members without interest or were transferred to the boat loan at the agreed rate. With the purchase of a boat in 1936 the loan account rose more rapidly.
The balance sheet for the year told a less cheerful but far from hopeless story. Store sales had doubled, leaving a surplus even at city prices. Fish production reached its peak since incorporation but received very weak support from an unwilling market. The net result was a small deficit of $559.79 which offered no dividend. Despite this lapse the board was able to demonstrate that the Kyuquot trollers had received the highest fish prices on the Pacific Coast.
Directors' Report
A very much improved financial condition was reflected in the 1935 directors' report, as follows:
Fish sales__________________...... $159,000.00
Net surplus on fish sale:; 1,656.68
Store  sales..................... 30,526 00
Net surplus on store
sales......._...................553.25
Dividend on fish sales, 2%. Dividend on store purchases, 5%.
The association now operated five fish stations, covering the West Coast of Vancouver Island and received 80 percent of the
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white fishermen's troll fish. It also occupied the dominant position in controlling prices.
Because of its extensive operations and opp: rtunlty for increased growth and service, the co-op decided to move its headquarters to a more central place. On December 10, 1936, quarters were occupied in Victoria. H. E. Beyer, certified accountant, was engaged as accountant and secretary-treasurer.
The outstanding event of 1936 was the purchase of the "Alpaca" from her owners in Halifax at a cost of $12,500. The voyage from Halifax to Victoria was made via the Panama Canal. The new owners very suitably re-christened the first unit in their fleet of packers "Cooperator 1." Seven years of cooperative endeavor had rendered the impossible merely challenging
Events Of 1937
Two major events highlighted the season of 1937. Land was taken up and bought at Bamfield and "Jcluelet. These canny people foresaw a need for increased facilities in days to come.
A second packer was purchased at a cost of $10,000. The "Corozal," upon possession, was re-named "Cooperator 2." This group of "poor fishermen" who had braved th" dangers of store business were now in the water transport field as welL
The year 1938 saw further ex-» pansion of property holdings in the shape of a new $1,500 fish float at Bamfield. A small store was opened on the float. No longer was it necessary to beachcomb for logs and to gather up derelict chains and anchors in order to build a station.
The society had passed from its earliest pioneering stage to another one with somewhat different but equally serious problems.
Additional proof of the strong position attained was found in the $4,500 store building opened at Bamfield in 1939. This largest and most modern store on the West Coast was stocked with $10,000 worth of goods. No careful spreading out on the shelves here!
The semi-annual meeting in June saw E. Larum decline re-nomination as president because of heavy duties as manager W. Taylor succeeded him in office.
Achievements
By the year 1942 the small group of fishermen, who in 1929 decided to take steps to improve their own condition, had some very creditable achievement to their account. They operated six fish stations (Bamfield, Ucluelet, Refuge Cove, Kyuquot, Klaskish, and Winter Harbor), two up-to-date -stores, packers and twoup-to-date stores. Their average annual catch reached two and a half million pounds.
That same year the annual general meeting at Bamfield authorized the board of directors to invest up to $40,000 in a new boat and equipment. On this order a new vessel, the Western Challenger was bought and re-christened "Co-operator 3."
A cheque for $33,950 was handed in payment to the former owners on April 2, 1943, exactly twelve years after the association's incorporation.
Assured markets during the current war years have resulted in a steady improvement of the association's financial position. Total assets of $9,529.55 in 1931 increased to $172,403.23 in 1943. The following season found the co-op in need of a fourth packer
To give service that would meet Kyuquot standards the members contracted with a Vancouver shipbuilder for a new vessel. This latest addition to the fleet is "Co-operator 4,"  valued  at approxi-
Breen Melvin
mately $65,000. Every modern device and design has been used in her construction, so that she may efficiently serve her fishermen-owners.
Co-op Federation
Up to and including the year 1944, the Kyuquot co-op had marketed its own fish products in Canada and the United States. In November, 1944, the Fishermen's Cooperative Federation was formally established with the Kyuquot Trollers* Association as a member society. Commencing with the 1945 season all selling will be done through the sales organization set up by the new federation.
Mr. D. G. Macdonald, secretary-treasurer of the Kyuquot co-op, went to the larger body to serve in the same capacity.
The past fifteen years have seen a vigorous development among the fishermen on the West Coast of Vancouver Island. The struggling communities which in 1930 formed a series of isolated, competing units are now vital elements In a federation of fishermen that includes five co-operatives on the B.C. coast and one in Alberta.
Before long similar groups on the Atlantic coast are expected to add their strength to a truly Canadian cooperative structure. A constructive national outlook is becoming increasingly characteristic of British Columbia's fishermen-co-operators. Bamfield, Kyuquot, To-fino, and the rest are strong links in the cooperative chain that circles the world.
JOINT SOCIAL GREAT SUCCESS
Some eighty fishermen, shore-workers and their friends spent an enjoyable evening following the joint business meeting of UFAWU on Thursday, May 31 in the Fishermen's Hall.
After the regular business was disposed of, members and their invited friends danced to Jack Martin's orchestra and refreshments were served by an energetic group of union members from the plants of B.C. Packers, U.F. Co-op, Western Fish and Canadian Fish.
B.C. COD FISHERMEN'S CO-OPERATIVE ASS'N
Room 7, 342 West Pender Street MArine 0361      Vancouver, B.C. •
PRODUCERS & MARKETERS OF LIVE LING-COD SINCE 1933
MEMBER! B.C. FISHERMEN'S CO-OPERATIVE FEDERATION
SALES MANAGER)   R.   U RQUH ART
N.H.B. Dock HAst 0292
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